Product Warranties

9 Months Ended

Sep. 30, 2016

Product Warranties Disclosures [Abstract]

Product Warranties

9. 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 likely 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 nine months ended September 30, 2016 and 2015:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Warranty reserve, beginning of period	$	87,953		$	85,874		$	87,407		$	94,060
Provision		11,622			12,674			33,331			32,899
Payments		(11,551	)		(12,617	)		(32,714	)		(41,028	)
Warranty reserve, end of period	$	88,024		$	85,931		$	88,024		$	85,931