Company: LGIH
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001580670-25-000043
Chunk: 18

Company: LGI Homes, Inc.
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 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 accrual are as follows (in thousands):Three Months Ended March 31, 20252024Warranty reserves, beginning of period$16,100 $13,600 Warranty provision1,594 1,790 Warranty expenditures(1,194)(1,390)Warranty reserves, end of period$16,500 $14,000 

4.     NOTES PAYABLE

Revolving Credit AgreementOn October 9, 2024, we entered into an amendment to the Fifth Amended and Restated Credit Agreement, dated as of April 28, 2021, with several financial institutions, and Wells Fargo Bank, National Association, as administrative agent (as amended through October 9, 2024, the “2024 Credit Agreement”). The 2024 Credit Agreement provides for a $1.205 billion revolving credit facility, which can be increased at the request of the Company by up to $95.0 million, subject to the terms and conditions of the 2024 Credit Agreement. The 2024 Credit Agreement matures on April 28, 2028 with respect to $1.085 billion, or 90.0%, of the $1.205 billion of commitments thereunder and on April 28, 2025 with respect to 10.0% of the commitments thereunder.Before each anniversary of the 2024 Credit Agreement, we may request a one-year extension of its maturity date. The 2024 Credit Agreement is guaranteed by, among others, each of our subsidiaries that have gross assets of at least $0.5 million, other than subsidiaries whose sole purpose is to own and operate single-family rental homes.The borrowings and letters of credit outstanding under the 2024 Credit Agreement, together with the outstanding principal balance of our 8.750% Senior Notes due 2028 (the “2028 Senior Notes”),