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

ORGANIZATION AND BASIS OF PRESENTATION (Tables)

3 Months Ended

Mar. 31, 2018

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



	As of
	March 31, 2018				December 31, 2017
	Outstanding		Estimated work remaining to complete		Outstanding		Estimated work remaining to complete
Sureties:
Sureties related to owned projects and lots under contract	$	316,905	$	139,025	$	296,387	$	120,320
Total Sureties	$	316,905	$	139,025	$	296,387	$	120,320
Letters of Credit (“LOCs”):
LOCs for land development	91,607		N/A		70,922		N/A
LOCs for general corporate operations	3,750		N/A		3,750		N/A
Total LOCs	$	95,357	N/A		$	74,672	N/A

Accrued liabilities at March 31, 2018 and December 31, 2017 consisted of the following (in thousands):



	As of
	March 31, 2018		December 31, 2017
Accruals related to real estate development and construction activities	$	56,537	$	53,522
Payroll and other benefits	31,313		58,186
Accrued interest	34,370		15,369
Accrued taxes	18,959		14,067
Warranty reserves	23,812		23,328
Other accruals	16,197		16,604
Total	$	181,188	$	181,076

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



	Three Months Ended March 31,
	2018			2017
Balance, beginning of period	$	23,328		$	22,660
Additions to reserve from new home deliveries	3,407			3,815
Warranty claims	(2,923		)	(3,998		)
Adjustments to pre-existing reserves	—			—
Balance, end of period	$	23,812		$	22,477