Product Warranties

9 Months Ended

Sep. 30, 2020

Product Warranties Disclosures [Abstract]

We establish 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 our 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 our general counsel and outside counsel retained to handle specific product liability cases.

The following table reflects the changes in our Warranty Reserve during the three and nine months ended September 30, 2020 and 2019:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Warranty reserve, beginning of period	$	111,219	$	100,659	$	108,053	$	103,700
Provision	20,894		20,217		48,992		48,486
Payments	(18,564)		(17,205)		(43,496)		(48,515)
Warranty reserve, end of period	$	113,549	$	103,671	$	113,549	$	103,671