We accrue for warranty costs that are covered under our existing general liability and construction defect policy as part of our general liability insurance deductible. For homes to be delivered in fiscal 2026 and previously delivered in 2025, our annual deductible under our general liability insurance is or was $40.0 million and $30.0 million, respectively, aggregated for construction defect and warranty claims. For bodily injury claims, our deductible per occurrence in fiscal 2026 is $0.5 million and in fiscal 2025 was $0.25 million, with $0.5 million for action over claims and a $30.0 million limit in both fiscal 2026 and 2025. In addition, we establish a warranty accrual for lower cost-related issues to cover home repairs, community amenities and land development infrastructure that are not covered under our general liability and construction defect policy. We accrue an estimate for these warranty costs at the time each home is closed and control is transferred to the homebuyer. Additions, charges and changes in the warranty reserve and general liability reserve for the three and six months ended April 30, 2026 and 2025 were as follows:

	Three Months Ended				Six Months Ended
	April 30,				April 30,
(In thousands)	2026		2025		2026		2025
Balance, beginning of period	$	105,482	$	90,790	$	103,824	$	89,391
Additions – Selling, general and administrative		2,150		2,547		4,189		5,094
Additions – Cost of sales		1,410		2,116		2,783		4,218
Charges incurred during the period		(3,912)		(3,479)		(7,338)		(6,355)
Changes to pre-existing reserves (1)		(1,491)		(174)		181		(548)
Balance, end of period	$	103,639	$	91,800	$	103,639	$	91,800

(1) Includes reserve balances acquired from unconsolidated joint ventures, as discussed in Note 18.