NOTE 13 OTHER ASSETS AND LIABILITIES

Prepaid Expenses and Other Assets

The following table summarizes the significant components of Prepaid expenses and other assets.


	September 30,		December 31,
(In thousands)	2016		2015
Condominium receivables (a)	$	169,642	$	191,037
Condominium deposits		478,251		55,749
Special Improvement District receivable		66,300		72,558
In-place leases		16,254		22,139
Below-market ground leases		19,071		19,325
Above-market tenant leases		2,505		3,581
Equipment, net of accumulated depreciation of $4.9 million and $3.9 million, respectively		17,930		18,772
Security and escrow deposits		10,381		17,599
Tenant incentives and other receivables		8,811		10,480
Prepaid expenses		11,743		8,474
Federal income tax receivable		11,564		11,972
Intangibles		4,085		4,045
Uncertain tax position asset		256		112
Other		3,447		5,347
	$	820,240	$	441,190

(a)

Approximately $32.3 million are expected to be collected in 2016 and $137.3 million are expected to be collected in 2017, based upon anticipated closings of the respective condominium projects.

The $379.1 million net increase primarily relates to the following:

A $422.5 million increase in condominium deposits due to cash buyers remitting the remaining balance of the sales prices in full prior to closing as required in the sales contracts; $3.3 million increase in prepaid expenses; and $0.1 million in other increases.

These increases were partially offset by the following decreases: a $21.4 million decrease in condominium receivables due primarily to remittance of the remaining balance of the sales price in full by cash buyers prior to closing; a net $7.2 million decrease in security and escrow deposits mostly attributable to our January 2016 investment in the Grandview SHG, LLC joint venture; a $6.3 million decrease in SID receivable due to reimbursement for construction expenditures; a decrease of $5.9 million relating primarily to the amortization of in-place leases; a net decrease in other prepaids of $1.9 million; and a $4.1 million decrease in various other accounts.

Accounts Payable and Accrued Expenses

The following table summarizes the significant components of Accounts payable and accrued expenses.


	September 30,		December 31,
(In thousands)	2016		2015
Construction payables	$	188,501	$	185,731
Deferred income		104,686		117,730
Condominium deposit liabilities		106,258		50,192
Accounts payable and accrued expenses		42,179		33,928
Tenant and other deposits		33,740		34,894
Accrued interest		29,014		16,504
Accrued payroll and other employee liabilities		24,313		31,271
Accrued real estate taxes		19,875		15,134
Interest rate swaps		27,794		4,217
Straight-line ground rent liability (a)		12,962		10,757
Above-market ground leases		1,994		2,113
Other		11,921		12,883
	$	603,237	$	515,354

(a)

Straight-line ground rent was previously reported in Other.

Total accounts payable and accrued expenses increased by $87.9 million primarily due to the following:

A $56.1 million increase in condominium deposits liability due to starting sales at Ke Kilohana and continued sales and additional deposit requirements at Ae'o; an increase of $8.3 million in accounts payable and accrued expenses; an increase of $23.6 million in interest rate swaps liability primarily due to a decrease in fair value of the forward-starting swaps; an increase of $12.5 million in accrued interest primarily due to six months of accrued interest at September 30, 2016 as compared to three months of accrued interest at December 2015 for our Senior Notes; $4.7 million increase in accrued real estate taxes; and $4.9 million in other immaterial accounts.

These increases are partially offset by the following: decrease of $13.0 million in deferred income due to the recognition of income on projects as the performance obligations are fulfilled; decrease of $7.0 million in accrued payroll and other employee liabilities primarily due to the payment of bonuses in the first quarter 2016; and $2.2 million in other immaterial decreases.