Meritage Homes Corporation Quarterly report pursuant to Section 13 or 15(d)

ORGANIZATION AND BASIS OF PRESENTATION (Tables)

6 Months Ended

Jun. 30, 2019

The table below outlines our surety bond and letter of credit obligations (in thousands):



	As of
	June 30, 2019				December 31, 2018
	Outstanding		Estimated work remaining to complete		Outstanding		Estimated work remaining to complete
Sureties:
Sureties related to owned projects and lots under contract	$	359,509	$	166,692	$	339,221	$	133,662
Total Sureties	$	359,509	$	166,692	$	339,221	$	133,662
Letters of Credit (“LOCs”):
LOCs for land development	51,858		N/A		70,287		N/A
LOCs for general corporate operations	3,750		N/A		3,750		N/A
Total LOCs	$	55,608	N/A		$	74,037	N/A

Accrued liabilities at June 30, 2019 and December 31, 2018 consisted of the following (in thousands):



	As of
	June 30, 2019		December 31, 2018
Accruals related to real estate development and construction activities	$	60,533	$	54,589
Payroll and other benefits	39,393		60,209
Accrued interest	13,303		13,296
Accrued taxes	9,813		7,548
Warranty reserves	20,927		24,552
Lease liability ⁽¹⁾	34,227		—
Other accruals	9,215		17,668
Total	$	187,411	$	177,862

A summary of changes in our warranty reserves follows (in thousands):



	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Balance, beginning of period	$	23,213		$	23,812		$	24,552		$	23,328
Additions to reserve from new home deliveries	3,888			4,146			7,275			7,553
Warranty claims	(6,174		)	(4,299		)	(10,900		)	(7,222		)
Adjustments to pre-existing reserves	—			—			—			—
Balance, end of period	$	20,927		$	23,659		$	20,927		$	23,659