Contingencies (Tables)

9 Months Ended

Jun. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Warranty reserves

Changes in our warranty reserves are as follows for the periods presented:

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
(In thousands)	2016			2015			2016			2015
Balance at beginning of period	$	40,903		$	28,794		$	27,681		$	16,084
Accruals for warranties issued (a)	3,567			2,935			9,269			6,090
Changes in liability related to warranties existing in prior periods (b)	11,148			7,058			41,801			27,813
Payments made (b)	(15,028		)	(7,963		)	(38,161		)	(19,163		)
Balance at end of period	$	40,590		$	30,824		$	40,590		$	30,824

^(a) Accruals for warranties issued are a function of the number of home closings in the period, the average selling prices of the homes closed and the rates of accrual per home estimated as a percentage of the selling price of the home. The increase in the amount of accrual in the current three and nine-month periods compared to the comparable prior-year periods is due to an increase in the number of closings and the sales prices of homes closed in the current periods, as well as increases in certain divisions' accrual rates.

^(b) Changes in liability related to warranties existing and payments made in all periods are elevated due to charges and subsequent payments related to water intrusion issues in certain of our communities located in Florida (refer to separate discussion below).