Product Warranty

3 Months Ended

Feb. 28, 2018

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 Lennar Homebuilding other liabilities in the condensed consolidated balance sheets. The activity in the Company’s warranty reserve was as follows:

	Three Months Ended
	February 28,
(In thousands)	2018			2017
Warranty reserve, beginning of the period	$	164,619		135,403
Warranties issued	24,689			20,720
Adjustments to pre-existing warranties from changes in estimates (1)	2,868			2,346
Warranties assumed related to acquisitions	108,404			6,345
Payments	(30,524		)	(25,827	)
Warranty reserve, end of period	$	270,056		138,987

(1)

The adjustments to pre-existing warranties from changes in estimates during the three months ended February 28, 2018 and 2017 primarily related to specific claims related to certain of the Company's homebuilding communities and other adjustments.