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

ORGANIZATION AND BASIS OF PRESENTATION (Tables)

3 Months Ended

Mar. 31, 2019

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



	As of
	March 31, 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	$	369,832	$	163,422	$	339,221	$	133,662
Total Sureties	$	369,832	$	163,422	$	339,221	$	133,662
Letters of Credit (“LOCs”):
LOCs for land development	65,521		N/A		70,287		N/A
LOCs for general corporate operations	3,750		N/A		3,750		N/A
Total LOCs	$	69,271	N/A		$	74,037	N/A

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



	As of
	March 31, 2019		December 31, 2018
Accruals related to real estate development and construction activities	$	55,205	$	54,589
Payroll and other benefits	29,887		60,209
Accrued interest	33,746		13,296
Accrued taxes	10,875		7,548
Warranty reserves	23,213		24,552
Lease liability ⁽¹⁾	27,194		—
Other accruals	9,643		17,668
Total	$	189,763	$	177,862

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



	Three Months Ended March 31,
	2019			2018
Balance, beginning of period	$	24,552		$	23,328
Additions to reserve from new home deliveries	3,387			3,407
Warranty claims	(4,726		)	(2,923		)
Adjustments to pre-existing reserves	—			—
Balance, end of period	$	23,213		$	23,812