Annual report pursuant to Section 13 and 15(d)

Accrued Expenses and Other Liabilities

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Accrued Expenses and Other Liabilities
 12 Months Ended
Dec. 31, 2023
Payables and Accruals [Abstract]  
Accrued Expenses and Other Liabilities Accrued Expenses and Other Liabilities
Accrued expenses and other liabilities consist of the following:
December 31,
2023 2022
(dollars in thousands)
Land development and home construction accrual $ 51,478  $ 39,716 
Warranty reserve and general liability 48,949  46,657 
Accrued compensation and benefits 26,029  18,920 
Lease liabilities 13,070  16,428 
Sales tax payable 1,646  1,448 
Income tax payable 4,636  3,420 
Interest payable 2,775  4,351 
Deferred revenue 180  — 
Homebuyer deposits 8,227  15,046 
Other deposits and liabilities 3,266  3,440 
Total accrued expenses and other liabilities $ 160,256  $ 149,426 
As of December 31, 2023, the Company had $0.2 million of deferred revenue related to lot sales and other revenue included in accrued expenses and other liabilities in the consolidated balance sheet. The Company reduces these liabilities and recognizes revenue as development progresses and the related performance obligations are completed. As of December 31, 2022, the Company did not have any deferred revenue and therefore no revenue was recognized during 2023 related to deferred revenue from the prior year.
Warranty—Estimated future direct warranty reserve and general liability costs are accrued and charged to cost of sales in the period when the related homebuilding revenues are recognized. Changes in the Company’s warranty reserve and general liability are detailed in the table below:
December 31,
2023 2022
(dollars in thousands)
Beginning warranty reserve and general liability $ 46,657  $ 15,692 
Adjustments (1)
—  18,018 
Provision (2)
10,457  16,114 
Payments (8,165) (3,167)
Ending warranty reserve and general liability $ 48,949  $ 46,657 
(1)     In accordance with ASC 210, Balance Sheet, the Company presented warranty reserve and general liability on a gross basis within the consolidated balance sheet as of December 31, 2022, and presented anticipated insurance recoveries within other assets. Previously, the Company presented the warranty reserve and general liability within accrued expenses and other liabilities, net of anticipated insurance recoveries. This resulted in an adjustment of $18.0 million to beginning warranty reserve and general liability on January 1, 2022 with a corresponding increase in warranty and general liability insurance receivables.
(2)     The provision amount for the year ended December 31, 2022 includes $3.8 million associated with Hanover, which we acquired on January 18, 2022.