Note 10 - Warranty Costs

6 Months Ended

Jun. 30, 2012

Product Warranty Disclosure [Text Block]

10.       Warranty Costs

Estimated future direct warranty costs are accrued and charged to cost of sales in the period when the related homebuilding revenues are recognized.  Amounts accrued are based upon historical experience rates.  Indirect warranty overhead salaries and related costs are charged to cost of sales in the period incurred.  We assess the adequacy of our warranty accrual on a quarterly basis and adjust the amounts recorded if necessary.  Our warranty accrual is included in accrued liabilities in the accompanying condensed consolidated balance sheets.  Changes in our warranty accrual are detailed in the table set forth below:

		Six Months Ended June 30,
		2012			2011
	(Dollars in thousands)
Warranty accrual, beginning of the period		$	17,572		$	20,866
Warranty costs accrued during the period			656			1,432
Warranty costs paid during the period			(1,635	)		(1,660	)
Warranty accrual, end of the period		$	16,593		$	20,638