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Product Warranty
6 Months Ended
May 31, 2014
Product Warranties Disclosures [Abstract]  
Product Warranty
Product Warranty
Warranty and similar reserves for homes are established at an amount estimated to be adequate to cover potential costs for materials and labor with regard to warranty-type claims expected to be incurred subsequent to the delivery of a home. Reserves are determined based on historical data and trends with respect to similar product types and geographical areas. The Company regularly monitors the warranty reserve and makes adjustments to its pre-existing warranties in order to reflect changes in trends and historical data as information becomes available. Warranty reserves are included in other liabilities in the accompanying condensed consolidated balance sheets. The activity in the Company’s warranty reserve was as follows:
 
Three Months Ended
 
Six Months Ended
 
May 31,
 
May 31,
(In thousands)
2014
 
2013
 
2014
 
2013
Warranty reserve, beginning of period
$
101,097

 
85,208

 
102,580

 
84,188

Warranties issued during the period
14,580

 
12,122

 
24,972

 
20,881

Adjustments to pre-existing warranties from changes in estimates (1)
3,456

 
4,960

 
5,576

 
7,909

Payments
(13,434
)
 
(12,048
)
 
(27,429
)
 
(22,736
)
Warranty reserve, end of period
$
105,699

 
90,242

 
105,699

 
90,242


(1)
The adjustments to pre-existing warranties from changes in estimates during the three and six months ended May 31, 2014 and 2013 primarily relate to specific claims received in certain of our homebuilding communities.