Company: LGIH
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001580670-25-000058
Chunk: 20

Company: LGI Homes, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 the use of funds from our available cash or other financing sources. We build and lease a number of single-family homes in select, existing communities. During the six months ended June 30, 2025 and 2024, we transferred $41.4 million and $11.0 million, respectively, of home assets from real estate inventory to rental properties within property and equipment, net. We are lessors of the homes representing these home assets.

3.    ACCRUED EXPENSES AND OTHER LIABILITIES 

Accrued and other liabilities consist of the following (in thousands):June 30,December 31,20252024Real estate inventory development and construction payable$59,834 $48,019 Taxes payable1,410 43,076 Land banking financing arrangements19,763 37,140 Accrued compensation, bonuses and benefits13,144 18,653 Warranty reserve15,500 16,100 Accrued interest14,612 13,560 Inventory related obligations13,493 8,779 Lease liability5,695 6,134 Contract deposits4,136 4,143 Other14,472 11,713 Total accrued expenses and other liabilities$162,059 $207,317 Land Banking Financing ArrangementsWe have land banking financing arrangements with a third-party land banker to repurchase land that we sold to the land banker as a method of acquiring finished lots in staged takedowns. Principal payments on these financing arrangements will generally coincide with the repurchase of lot takedowns from the land banker. We expect to complete the repurchase of all lots via takedowns associated with these transactions over the course of approximately one year.Inventory Related ObligationsWe own lots in certain communities in Florida and Texas that have Community Development Districts or similar utility and infrastructure development special assessment programs that allocate a fixed amount of debt service associated with development activities to each lot. This obligation for infrastructure development is attached to the land, which is typically payable over a 30-year period and is ultimately assumed by the homebuyer when home sales are closed. The obligations assumed by the homebuyer represent a non-cash cost of the lots.Estimated Warranty ReserveWe generally provide homebuyers with a one-year warranty on the house and a limited warranty for major defects in structural elements, such as framing components and foundation systems, typically ranging from six to ten years depending on the applicable state.

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Changes to our warranty