Product Warranty

9 Months Ended

Aug. 31, 2019

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

	Three Months Ended					Nine Months Ended
	August 31,					August 31,
(In thousands)	2019			2018		2019		2018
Warranty reserve, beginning of the period	$	291,624		294,710		319,109		164,619
Warranties issued	49,603			48,878		131,429		121,422
Adjustments to pre-existing warranties from changes in estimates (1)	1,097			(4,785	)	(6,426	)	5,310
Warranties assumed related to acquisitions	—			(5	)	—		117,549
Payments	(51,808		)	(40,575	)	(153,596	)	(110,677	)
Warranty reserve, end of period	$	290,516		298,223		290,516		298,223

(1)

The adjustments to pre-existing warranties from changes in estimates are primarily related to specific claims for certain of the Company's homebuilding communities and other adjustments.