v3.26.1
Payables and Accruals
 12 Months Ended
Dec. 31, 2025
Payables and Accruals [Abstract]  
Accounts Payable and Accrued Liabilities Disclosure
7. ACCRUED EXPENSES

A summary of the Company’s accrued expenses is as follows (in thousands):
December 31, 2025December 31, 2024
Federal income tax payable47,200 3,749 
Real estate development reserve to complete(1)
31,708 31,043 
Accrued compensation16,911 20,309 
Warranty reserve12,920 17,373 
Accrued property tax payable12,635 10,973 
Self-insurance reserve7,021 5,195 
Other accrued expenses24,242 21,426 
Total accrued expenses152,637 110,068 
(1)Our real estate development reserve to complete consists of budgeted costs to complete the development of our communities.

Warranties
Warranty activity, included in accrued expenses in our consolidated balance sheets, consists of the following (in thousands):
December 31, 2025December 31, 2024
Warranty accrual, beginning of period$17,373 $23,474 
Warranties issued7,149 12,618 
Changes in liability for existing warranties(7,207)387 
Change in accounting estimate (1)
— (13,178)
Payments made(4,395)(5,928)
Warranty accrual, end of period$12,920 $17,373 
(1)    During the year ended December 31, 2024, the Company reassessed its warranty accrual estimate based on historical data and recent trends. As a result, the Company recognized a decrease in its warranty accrual estimate, reducing the warranty liability by approximately $13.2 million ($10.7 million net of tax) in the year ended December 31, 2024, or $0.24 per share (basic and diluted). This adjustment was primarily due to improvements in construction quality, resulting in lower warranty spend than previously estimated, along with reducing our structural warranty period from 10 years to 6 to 8 years, depending on the market.