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Product Warranties | 6 Months Ended
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Jun. 30, 2014
Guarantees [Abstract] |
Product Warranties |
11. | Product Warranties
The Company establishes warranty and product liability reserves (“warranty reserve”) to provide for estimated future expenses as a result of construction and product defects, product recalls and litigation incidental to NVR’s homebuilding business. Liability estimates are determined based on management’s judgment, considering such factors as historical experience, the likely current cost of corrective action, manufacturers’ and subcontractors’ participation in sharing the cost of corrective action, consultations with third party experts such as engineers, and discussions with the Company’s general counsel and outside counsel retained to handle specific product liability cases. The following table reflects the changes in the Company’s warranty reserve during the three and six months ended June 30, 2014 and 2013:
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2014 |  |  | 2013 |  |  | 2014 |  |  | 2013 |
Warranty reserve, beginning of period |  | $ | 98,765 |  |  | $ | 63,057 |  |  | $ | 101,507 |  |  | $ | 62,742 |
Provision |  |  | 13,193 |  |  |  | 25,612 |  |  |  | 23,453 |  |  |  | 33,903 |
Payments |  |  | (14,768 | ) |  |  | (11,328 | ) |  |  | (27,770 | ) |  |  | (19,304 | )
Warranty reserve, end of period |  | $ | 97,190 |  |  | $ | 77,341 |  |  | $ | 97,190 |  |  | $ | 77,341 |
The warranty reserve provision for the three and six months ended June 30, 2013 included a charge of approximately $15,600 to establish an accrual related to remediation of primarily water infiltration issues in a single completed community. The water infiltration issues were the result of a design issue with several products developed for and built exclusively in that one specific community. The warranty reserve provision for the three and six months ended June 30, 2014 included additional charges related to this issue totaling $3,000 and $3,975, respectively.

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- Definition The entire disclosure for standard and extended product warranties and other product guarantee contracts, including a tabular reconciliation of the changes in the guarantor's aggregate product warranty liability for the reporting period. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 460 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249 + Details
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