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Warranties
 6 Months Ended
Jun. 30, 2020
Warranties [Abstract]  
Warranties 7. Warranties

Estimated future direct warranty costs are accrued and charged to cost of home sales revenues in the period when the related home sales revenues are recognized. Amounts accrued, which are included in accrued expenses and other liabilities on the consolidated balance sheets, are based upon historical experience rates. We subsequently assess the adequacy of our warranty accrual on a quarterly basis through an internal model that incorporates historical payment trends and adjust the amounts recorded, if necessary. Based on warranty payment trends relative to our estimates at the time of home closing, we reduced our warranty reserve by $0.2 million and increased our reserve by $0.2 million during the three months ended June 30, 2020 and 2019, respectively. We reduced our warranty reserve by $1.3 million during the six months ended June 30, 2020, compared to a $0.2 million increase during the same period in 2019. These

adjustments are included in cost of home sales revenues on our consolidated statements of operations.  Changes in our warranty accrual for the three and six months ended June 30, 2020 and 2019 are detailed in the table below (in thousands):

Three Months Ended June 30,

Six Months Ended June 30,

2020

2019

2020

2019

Beginning balance

$

9,727

$

8,633

$

9,731

$

7,970

Warranty expense provisions

2,274

2,107

4,051

3,768

Payments

(612)

(1,174)

(1,301)

(2,194)

Warranty adjustment

(168)

202

(1,260)

224

Ending balance

$

11,221

$

9,768

$

11,221

$

9,768