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

Quarterly report pursuant to Section 13 or 15(d)

Organization and Basis of Presentation (Tables)

Organization and Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2012

Organization and Basis of Presentation [Abstract]


(In thousands)	At June 30, 2012		At December 31, 2011
Repayment guarantees	$	338	$	346
Completion guarantees (1)		0		0
South Edge guarantee (2)		13,243		13,243

Total guarantees	$	13,581	$	13,589

(1)	As our completion guarantees are typically backed by funding from a third party, we believe these guarantees do not represent a potential cash obligation for us, as they require only non-financial performance.

(2)	As discussed in Note 13, we dispute the enforceability of this guarantee, and ultimate resolution of this matter will be addressed through litigation and/or settlements.

Letter of credit and surety bond obligations


	June 30, 2012				December 31, 2011
	Outstanding		Estimated work remaining to complete		Outstanding		Estimated work remaining to complete
Sureties:
Sureties related to joint ventures	$	1,950	$	1,950	$	1,594	$	32
Sureties related to owned projects and lots under contract		73,009		40,197		65,921		37,252

Total sureties	$	74,959	$	42,147	$	67,515	$	37,284

Letters of Credit (“LOCs”):
LOCs for land development		12,969		N/A		6,451		N/A
LOCs for general corporate operations		4,991		N/A		4,960		N/A

Total LOCs	$	17,960		N/A	$	11,411		N/A

Accrued Liabilities


	At June 30, 2012		At December 31, 2011
Accruals related to real-estate development and construction activities	$	16,113	$	11,048
Payroll and other benefits		13,574		13,535
Accrued taxes		5,016		3,075
Warranty reserves		21,243		23,136
Legal reserves		8,991		10,157
Other accruals		19,611		18,513

Total	$	84,548	$	79,464

Warranty Reserves


	Three Months Ended June 30,						Six Months Ended June 30,
	2012			2011			2012			2011
Balance, beginning of period	$	21,705		$	27,210		$	23,136		$	29,265
Additions to reserve from new home deliveries		2,074			1,591			3,605			2,848
Warranty claims		(2,536	)		(2,872	)		(5,498	)		(5,795	)
Adjustments to pre-existing reserves		0			0			0			(389	)

Balance, end of period	$	21,243		$	25,929		$	21,243		$	25,929

- Definition

Tabular disclosure of each guarantee obligation, or each group of similar guarantee obligations, including (a) the nature of the guarantee, including its term, how it arose, and the events or circumstances that would require the guarantor to perform under the guarantee; (b) the maximum potential amount of future payments (undiscounted) the guarantor could be required to make under the guarantee; (c) the current carrying amount of the liability, if any, for the guarantor's obligations under the guarantee; and (d) the nature of any recourse provisions under the guarantee, and any assets held either as collateral or by third parties, and any relevant related party disclosure. Excludes disclosures about product warranties.

+ References + Details