XML 25 R14.htm IDEA: XBRL DOCUMENT v3.10.0.1
Product Warranties
 6 Months Ended
Jun. 30, 2018
Product Warranties Disclosures [Abstract]  
Product Warranties
Product Warranties
The Company establishes warranty and product liability reserves (“Warranty Reserve”) to provide for estimated future expenses as a result of construction and product defects, product recalls and litigation incidental to NVR’s homebuilding business.  Liability estimates are determined based on management’s judgment, considering such factors as historical experience, the estimated current cost of corrective action, manufacturers’ and subcontractors’ participation in sharing the cost of corrective action, consultations with third party experts such as engineers, and discussions with the Company’s general counsel and outside counsel retained to handle specific product liability cases.
The following table reflects the changes in the Company’s Warranty Reserve during the three and six months ended June 30, 2018 and 2017:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2018
 
2017
 
2018
 
2017
Warranty reserve, beginning of period
 
$
95,606

 
$
93,503

 
$
94,513

 
$
93,895

Provision
 
16,217

 
13,206

 
27,744

 
22,167

Payments
 
(12,121
)
 
(11,315
)
 
(22,555
)
 
(20,668
)
Warranty reserve, end of period
 
$
99,702

 
$
95,394

 
$
99,702

 
$
95,394