Estimated Development Liability for Sold Land

9 Months Ended

Sep. 30, 2012

Estimated Development Liability for Sold Land [Abstract]

Estimated Development Liability for Sold Land

Note T -  Estimated Development Liability for Sold Land

The estimated development liability consists primarily of utilities improvements in Poinciana and Rio Rico for more than 8,000 homesites previously sold and is summarized as follows:

	September 30, 2012			December 31, 2011
Gross estimated unexpended costs	$	35,902		$	37,106
Less costs relating to unsold homesites		(2,905	)		(3,062	)
Estimated development liability for sold land	$	32,997		$	34,044

The estimated development liability for sold land is reduced by actual expenditures and is evaluated and adjusted, as appropriate, to reflect management's estimate of anticipated costs. In addition, we obtain annual third-party engineer evaluations and adjust this liability to reflect changes in the estimated costs. In the third quarter of 2012, the engineer's evaluation resulted in a decrease to the estimated liability related to Rio Rico of $1,083. This decrease is attributable to a change in the estimate for installation of electrical services. We recorded charges associated with these obligations of $120 and $0 during the nine and three months ended September 30, 2012, respectively, and $476 during the nine and three months ended September 30, 2011, respectively. Future increases or decreases of costs for construction, material and labor as well as other land development and utilities infrastructure costs may have a significant effect on the estimated development liability.