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Note 8 - Accrued Expenses and Other Liabilities - Schedule of Accrued Expenses and Other Liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2020
Dec. 31, 2019
Jun. 30, 2019
Warranty accrual (1) $ 6,740 [1] $ 7,223 [1] $ 7,049
Litigation reserves (2) [2] 6,000 10,900  
Accrued interest 5,605 5,796  
Accrued compensation and benefits 4,216 5,350  
Completion reserve 964 3,167  
Customer deposits 3,608 3,574  
Operating Lease, Liability, Total 2,434 [3] 2,243  
Other accrued expenses 3,713 2,301  
Total accrued expenses and other liabilities $ 33,280 $ 40,554  
[1] Included in the amount at June 30, 2020 and December 31, 2019 is approximately $1.8 million and $1.9 million, respectively, of warranty liabilities estimated to be recovered by our insurance policies.
[2] During 2019, we recorded litigation reserves totaling $5.9 million related to ordinary course litigation which developed and became probable and estimable within the 2019 fourth quarter. Further, as a result of the development of the construction defect related claims within the litigation reserve and their impact to the Company’s litigation reserve estimates for IBNR future construction defect claims, we recorded an additional $5.0 million of IBNR construction defect claim reserves resulting in aggregate litigation reserves totaling $10.9 million as of December 31, 2019. Because the self-insured retention deductibles had been met for each claim covered by the $5.9 million reserve, and the self-insured retention deductibles are expected to be met for the $5.0 million IBNR construction defect claim reserves, the Company recorded estimated insurance receivables of $10.9 million offsetting the litigation reserves as of December 31, 2019. During the six months ended June 30, 2020, $4.7 million was paid by insurance related to two claims and the Company also reduced its litigation reserve estimate by $0.2 million for one of these claims, resulting in a litigation reserve balance of $6.0 million at June 30, 2020, with a corresponding decrease recorded within insurance receivables. Please refer to Note 7.
[3] The weighted average remaining lease term and weighted average incremental borrowing rate used in calculating our lease liabilities were 3.0 years and 4.7%, respectively at June 30, 2020.