Warranty Costs

Warranty reserves for houses are established to cover estimated costs for materials and labor with regard to warranty-type claims to be incurred subsequent to the closing of a house. Reserves are determined based on historical data and other relevant factors. We may have recourse against subcontractors for certain claims relating to workmanship and materials. Warranty reserves are included in Accrued and Other Liabilities in the consolidated balance sheets.

Changes in the warranty reserve consisted of the following:

	Nine Months Ended						Three Months Ended
	September 30,						September 30,
	2011			2010			2011			2010
Accrued warranty reserve, beginning of period	$	477		$	458		$	422		$	484
Estimated warranty expense		335			319			164			62
Amounts charged against warranty reserve		(331	)		(345	)		(105	)		(114	)
Accrued warranty reserve, end of period	$	481		$	432		$	481		$	432