v2.3.0.15
Product Warranties
9 Months Ended
Sep. 30, 2011
Product Warranties [Abstract] 
Product Warranties

NOTE 6—PRODUCT WARRANTIES

The Company provides the retail home buyer a one-year limited warranty covering defects in material or workmanship in home structure, plumbing and electrical systems. The Company estimated warranty costs are accrued at the time of the sale to the dealer following industry standards and historical warranty cost incurred. Periodic adjustments to the estimated warranty accrual are made as events occur which indicate changes are necessary. As of September 30, 2011, the Company has recorded an accrued liability of $1,235,000 for estimated warranty costs relating to homes sold, based upon management's assessment of historical experience factors and current industry trends. Management reviews its warranty requirements at the close of each reporting period and adjusts the reserves accordingly.

The following tabular presentation reflects activity in warranty reserves during the periods presented:

 

     For The Three Month Period Ended     For The Nine Month Period Ended  
     September 30,     September 30,     September 30,     September 30,  
     2011     2010     2011     2010  

Balance at beginning of period

    $ 1,245,000      $ 1,495,000      $ 1,290,000      $ 1,530,000   

Warranty charges

      500,809        494,584        1,386,113        1,675,493   

Warranty payments

      (510,809 )      (559,584 )      (1,441,113 )      (1,775,493 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Balance at end of period

    $ 1,235,000      $ 1,430,000      $ 1,235,000      $ 1,430,000