NOTE 11 OTHER ASSETS AND LIABILITIES

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


	December 31,
(In thousands)	2016		2015
Condominium receivables (a)	$	210,219	$	191,037
Condominium deposits		193,197		55,749
Special Improvement District receivable		61,603		72,558
Straight-line rent, net		31,518		22,241
In-place leases		16,015		22,139
Below-market ground leases		18,986		19,325
Above-market tenant leases		2,457		3,581
Equipment, net of accumulated depreciation of $4.9 million and $3.9 million, respectively		17,556		18,772
Security and escrow deposits		61,304		17,599
Tenant incentives and other receivables		8,773		10,480
Prepaid expenses		11,177		8,474
Federal income tax receivable		15,763		11,972
Intangibles		4,046		4,045
Uncertain tax position asset		—		112
Other		13,902		5,347
	$	666,516	$	463,431

(a)

We expect all the Condominium receivables outstanding at December 31, 2016, to be collected in 2017 upon closing Anaha and the remaining units at Waiea condominium projects.

The $203.1 million net increase in total prepaid expenses and other assets as of December 31, 2016 compared to 2015 primarily relates to various increases in condominium project activities, including a net $137.4 million increase in condominium deposits at Ward Village relating to the net sales activity primarily at our Anaha, Ke Kilohana and Ae'o, projects offset by utilization of deposits for construction costs, an increase of $43.7 million in security and escrow deposits primarily relating to the remaining escrowed condo deposits to be used for Waiea remaining condominium construction costs and a $19.2 million increase in condominium receivables, representing revenue recognized in excess of buyer deposits received for our Waiea and Anaha projects. Increases were also noted as follows: straight-line rent increased by $9.3 million given additional Operating Assets placed in service during the year; Other assets increased $8.6 million primarily relating to pending reimbursements from the DCACC relating to improvements we made on the Merriweather Post Pavilion, which was transferred to the DCACC in November 2016; Federal income tax receivable increased $3.8 million relating to estimated 2016 tax payments, and prepaid expenses increased $2.7 million due to other net changes.

All of these increases were offset by decreases as follows: a decrease of $11.0 million for Special improvement district receivables used to fund development costs incurred at our Summerlin MPC; decreases of $6.1 million, $0.3 million, and $1.1 million due to normal amortization of intangibles for in-place leases, below-market ground leases, and above-market tenant leases, respectively; a net decrease of $1.7 million in tenant incentives and other receivables for various tenant activities; and a decrease of $1.3 million in equipment, net, relating primarily to scheduled depreciation of these assets.

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


	December 31,
(In thousands)	2016		2015
Construction payables	$	207,917	$	185,731
Deferred income		85,158		117,730
Condominium deposit liabilities		117,015		50,192
Accounts payable and accrued expenses		33,050		33,928
Tenant and other deposits		28,559		34,894
Accrued interest		16,897		16,504
Accrued payroll and other employee liabilities		36,937		31,271
Accrued real estate taxes		16,726		15,134
Interest rate swaps		(149)		4,217
Straight-line ground rent liability		13,126		10,757
Above-market ground leases		1,762		2,113
Other		15,012		12,883
	$	572,010	$	515,354

(a)

Straight-line ground rent was previously reported in Other.

Accounts payable and accrued expenses increased by a net $56.7 million at December 31, 2016 as compared to December 31, 2015.

The net increase reflects increases of $66.8 million in the condominium deposit liability for the towers under construction at Ward Village; an increase of $22.2 million in construction payables primarily due to continued development activities at both Ward Village and the Merriweather District; an increase of $2.4 million relating to normally scheduled amortization of our ground rent liability; an increase of $2.1 million in Other miscellaneous accrued; and a net $6.8 increase in changes in the balances of accounts payable, accrued interest, accrued payroll and other employee liabilities, and accrued real estate taxes. These increases were offset by the following decreases: a decrease of $32.6 million in deferred income related to recognition of income from previously deferred land sales at our Summerlin MPC; a decrease of $6.3 million in tenant and other deposits primarily related to rent credits at 1725-35 Hughes Landing Boulevard; a decrease of $4.4 million in the interest rate swap liability due to net improvements in the swaps’ fair values (see Note 13 - Derivative instruments and hedging activities for further details); and a decrease of $0.3 million relating to normally scheduled amortization of above-market ground leases.