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

Organization and Basis of Presentation (Tables)

3 Months Ended

Mar. 31, 2015

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



	At March 31, 2015				At December 31, 2014
	Outstanding		Estimated work remaining to complete		Outstanding		Estimated work remaining to complete
Sureties:
Sureties related to joint ventures	$	87	$	87	$	87	$	87
Sureties related to owned projects and lots under contract	249,367		101,669		230,079		93,667
Total Sureties	$	249,454	$	101,756	$	230,166	$	93,754
Letters of Credit (“LOCs”):
LOCs in lieu of deposits for contracted lots	$	1,200	N/A		$	1,200	N/A
LOCs for land development	14,012		N/A		13,789		N/A
LOCs for general corporate operations	4,500		N/A		4,500		N/A
Total LOCs	$	19,712	N/A		$	19,489	N/A

Accrued liabilities at March 31, 2015 and December 31, 2014 consisted of the following (in thousands):



	March 31, 2015		December 31, 2014
Accruals related to real estate development and construction activities	$	29,693	$	29,365
Payroll and other benefits	25,810		44,107
Accrued taxes	10,352		11,096
Warranty reserves	21,839		22,080
Legal reserves	15,109		16,499
Other accruals	38,372		30,997
Total	$	141,175	$	154,144

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



	Three Months Ended March 31,
	2015			2014
Balance, beginning of period	$	22,080		$	21,971
Additions to reserve from new home deliveries	2,628			2,276
Warranty claims	(2,869		)	(2,765		)
Adjustments to pre-existing reserves	—			—
Balance, end of period	$	21,839		$	21,482