Payables and Accruals

6 Months Ended

Jun. 30, 2023

Accounts Payable and Accrued Liabilities Disclosure

4. ACCRUED EXPENSES

A summary of the Company’s accrued expenses is as follows (in thousands):


	June 30, 2023		December 31, 2022
Real estate development reserve to complete(1)	$	31,685	$	28,793
Warranty reserve	20,824		17,945
Federal income tax payable	5,613		6,334
Accrued compensation	10,235		13,917
Other accrued expenses	33,107		24,292
Total accrued expenses	$	101,464	$	91,281

(1)Our real estate development reserve to complete consists of estimated future costs to complete the development of our communities.

Warranties

Warranty accruals are included within accrued expenses on the condensed consolidated balance sheets. Warranty activity during the three and six months ended June 30, 2023 and 2022 consisted of the following (in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Warranty accrual, beginning of period	$	19,532	$	10,613	$	17,945	$	9,378
Warranties issued	2,876		2,397		4,921		4,211
Changes in liability for existing warranties	(82)		121		551		416
Settlements made	(1,502)		(1,066)		(2,593)		(1,940)
Warranty accrual, end of period	$	20,824	$	12,065	$	20,824	$	12,065