Commitments and Contingencies (Tables)

9 Months Ended

Aug. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Changes in the Warranty Liability

The changes in our warranty liability were as follows (in thousands):

	Three Months Ended August 31,						Nine Months Ended August 31,
	2017			2016			2017			2016
Balance at beginning of period	$	60,037		$	48,837		$	56,682		$	49,085
Warranties issued	10,041			8,006			25,965			19,573
Payments	(6,267		)	(4,719		)	(18,836		)	(17,186		)
Adjustments	—			—			—			652
Balance at end of period	$	63,811		$	52,124		$	63,811		$	52,124

Schedule of Self-Insurance Liability

The changes in our self-insurance liability were as follows (in thousands):

	Three Months Ended August 31,						Nine Months Ended August 31,
	2017			2016			2017			2016
Balance at beginning of period	$	156,505		$	156,733		$	158,584		$	173,011
Self-insurance expense (a)	5,573			7,110			13,811			15,532
Payments	(2,291		)	(4,517		)	(7,051		)	(19,952		)
Adjustments (b)	21,673			—			21,673			—
Reclassification of estimated probable recoveries(c)	(3,901		)	5,518			(9,458		)	(3,747		)
Balance at end of period	$	177,559		$	164,844		$	177,559		$	164,844

(a) These expenses are included in selling, general and administrative expenses and are largely offset by contributions from subcontractors participating in the wrap-up policy.

(b) Amounts for the three months and nine months ended August 31, 2017 reflect a change in estimate to increase our self-insurance liability based on a review of actual claim resolution experience, which indicated a higher frequency of claims and, to a lesser extent, a higher claim severity than previously anticipated. Based on these higher historical claim frequency and severity trends, we determined in the 2017 third quarter that future payments for claims relating to homes delivered in certain prior years were likely to exceed the then-estimated liabilities remaining for those claims. Therefore, we recorded an adjustment to increase our self-insurance liability based on an actuarially determined estimate that we believe has a higher probability of being adequate to cover future payments associated with unresolved claims, including claims incurred but not yet reported. This adjustment is included in selling, general and administrative expenses.

(c) Amount for each period represents the changes in the estimated probable insurance and other recoveries that were reclassified to receivables to present our self-insurance liability on a gross basis.