BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2018

At December 31, 2018 and 2017, property and equipment, net consisted of the following (in thousands):



	At December 31,
	2018			2017
Computer and office equipment	$	50,197		$	40,731
Model home furnishings and capitalized sales office costs	87,768			50,063
Gross property and equipment	137,965			90,794
Accumulated depreciation	(83,369		)	(57,163		)
Total (1)	$	54,596		$	33,631

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



	At December 31,
	2018		2017
Accruals related to real estate development and construction activities	$	54,589	$	53,522
Payroll and other benefits	60,209		58,186
Accrued interest	13,296		15,369
Accrued taxes	7,548		14,067
Warranty reserves	24,552		23,328
Other accruals	17,668		16,604
Total	$	177,862	$	181,076

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



	At December 31,
	2018				2017
	Outstanding		Estimated work remaining to complete (unaudited)		Outstanding		Estimated work remaining to complete (unaudited)
Sureties:
Sureties related to owned projects and lots under contract	339,221		133,662		296,387		120,320
Total Sureties	$	339,221	$	133,662	$	296,387	$	120,320
Letters of Credit (“LOCs”):
LOCs for land development	70,287		N/A		70,922		N/A
LOCs for general corporate operations	3,750		N/A		3,750		N/A
Total LOCs	$	74,037	N/A		$	74,672	N/A

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



	Years Ended December 31,
	2018			2017
Balance, beginning of year	$	23,328		$	22,660
Additions to reserve from new home deliveries	15,906			17,161
Warranty claims	(14,682		)	(14,854		)
Adjustments to pre-existing reserves	—			(1,639		)
Balance, end of year	$	24,552		$	23,328