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

Organization and Basis of Presentation (Tables)

6 Months Ended

Jun. 30, 2015

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



	At June 30, 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	241,805		93,313		230,079		93,667
Total Sureties	$	241,892	$	93,400	$	230,166	$	93,754
Letters of Credit (“LOCs”):
LOCs in lieu of deposits for contracted lots	$	—	N/A		$	1,200	N/A
LOCs for land development	13,091		N/A		13,789		N/A
LOCs for general corporate operations	4,500		N/A		4,500		N/A
Total LOCs	$	17,591	N/A		$	19,489	N/A

Accrued liabilities at June 30, 2015 and December 31, 2014 consisted of the following (in thousands):



	June 30, 2015		December 31, 2014
Accruals related to real estate development and construction activities	$	40,187	$	34,975
Payroll and other benefits	29,592		44,107
Accrued taxes	4,637		11,096
Warranty reserves	21,993		22,080
Legal reserves	15,484		16,499
Other accruals	25,709		25,387
Total	$	137,602	$	154,144

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



	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
Balance, beginning of period	$	21,839		$	21,482		$	22,080		$	21,971
Additions to reserve from new home deliveries	2,996			2,759			5,624			5,035
Warranty claims	(3,592		)	(3,859		)	(6,461		)	(6,624		)
Adjustments to pre-existing reserves	750			500			750			500
Balance, end of period	$	21,993		$	20,882		$	21,993		$	20,882