Product Warranties

6 Months Ended

Jun. 30, 2017

Product Warranties Disclosures [Abstract]

Product Warranties

8. 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 six months ended June 30, 2017 and 2016:

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Warranty reserve, beginning of period	$	93,503		$	86,692		$	93,895		$	87,407
Provision		13,206			12,867			22,167			21,709
Payments		(11,315	)		(11,606	)		(20,668	)		(21,163	)
Warranty reserve, end of period	$	95,394		$	87,953		$	95,394		$	87,953