The Company is named as a defendant in various claims, complaints and other legal actions in the ordinary course of business. At any point in time, the Company is managing several hundred individual claims related to construction defect matters, personal injury claims, employment matters, land development issues, contract disputes and other matters. The Company has established reserves for these contingencies based on the estimated costs of pending claims and the estimated costs of anticipated future claims related to previously closed homes. The estimated liabilities for these contingencies were $453.5 million and $423.5 million at June 30, 2017 and September 30, 2016 , respectively, and are included in homebuilding accrued expenses and other liabilities in the consolidated balance sheets. Approximately 96% and 95% of these reserves related to construction defect matters at June 30, 2017 and September 30, 2016 , respectively. Expenses related to the Company’s legal contingencies were $80.6 million and $34.2 million in the nine months ended June 30, 2017 and 2016 , respectively.

– From D.R. Horton, Inc and Subsidiaries Consolidated Financial Statement June 20, 2017  page 19 Legal Claims and Insurance

Read their 2016 Annual Report Here