Estimated Development Liability for Sold Land

6 Months Ended

Jun. 30, 2014

Estimated Development Liability for Sold Land [Abstract]

Estimated Development Liability for Sold Land

Estimated Development Liability for Sold Land

The estimated development liability consists primarily of utilities improvements in Rio Rico and Poinciana for more than 8,000 home sites previously sold, in most cases prior to 1980, and is summarized as follows: 

	June 30, 2014			December 31, 2013
Gross estimated unexpended costs	$	36,086		$	36,117
Less costs relating to unsold home sites	(2,885		)	(2,885		)
Estimated development liability for sold land	$	33,201		$	33,232

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 potential costs.  In addition, we obtain third-party engineer evaluations and adjust this liability to reflect changes in the estimated costs. We recorded charges associated with these obligations of $0 and $10 during the three months ended June 30, 2014 and 2013, respectively, and $0 and $29 during the six months ended June 30, 2014 and 2013, respectively. Cash expenditures associated with these obligations were $23 and $10 during three months ended June 30, 2014 and 2013, respectively, and $31 and $20, during six months ended June 30, 2014 and 2013, 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.