5. Supplemental Balance Sheet Information

The following table sets forth information relating to accrued liabilities (in thousands).


	December 31,
	2011		2010
Accrued liabilities
Insurance reserves (Note 1)	$	50,459	$	52,901
Warranty reserves (Note 1)		25,525		34,704
Accrued executive deferred compensation (Note 6)		24,136		20,956
Accrued interest payable		13,762		17,822
Accrued compensation and related expenses		12,339		22,659
Land development and home construction accruals		10,619		12,450
Legal reserves		9,360		14,230
Customer and escrow deposits		5,468		4,523
Liability for unrecognized tax benefits (Note 7)		3,303		55,850
Mortgage loan loss reserves (Note 10)		442		6,881
Other accrued liabilities		15,860		17,843

Total	$	171,273	$	260,819

The reduction in accrued compensation and related expenses at December 31, 2011 compared with December 31, 2010, primarily reflects (1) a lower headcount; (2) no executive bonus accrual in 2011 as the executive performance objectives were not achieved; and (3) a reduction in discretionary non-executive bonuses.