NOTE 13 OTHER ASSETS AND LIABILITIES

Prepaid Expenses and Other Assets

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


	June 30,		December 31,
(In thousands)	2017		2016
Condominium receivables (a)	$	315,337	$	210,219
Condominium deposits		169,162		193,197
Special Improvement District receivable		60,233		61,603
Straight-line rent, net		34,988		31,518
In-place leases		12,719		16,015
Below-market ground leases		18,816		18,986
Above-market tenant leases		1,938		2,457
Equipment, net of accumulated depreciation of $6.1 million and $4.9 million, respectively		15,669		17,556
Security and escrow deposits		47,219		61,304
Tenant incentives and other receivables		9,643		8,773
Prepaid expenses		11,237		11,177
Federal income tax receivable		16,186		15,763
Intangibles		36,182		4,046
Other		3,258		13,902
	$	752,587	$	666,516

(a)

We expect $296.7 million of the Condominium receivables outstanding at June 30, 2017 to be collected in 2017 upon closing Anaha and the remaining contracted units at Waiea. Of the remaining, $18.3 million related to Ae`o will be collected in 2018, and $0.4 million relating to Ke Kilohana will be collected in 2019.

The $86.1 million net increase primarily relates to the following increases: a $105.1 million increase in condominium receivables recorded with respect to sales recognized on a percentage of completion basis; a $32.1 million increase in intangibles primarily due to our acquisition of our partner’s 50.0% interest in the Las Vegas 51s; $0.9 million increase in tenant incentives and other receivables due to various tenant activities and $4.0 million in other immaterial increases related to Prepaid expenses, Straight-line rent, net and Federal income tax receivable.

These increases were partially offset by the following decreases: a $24.0 million decrease in condominium deposits due to closings of Waiea condominium units, partially offset by higher net sales activity for Ae`o and Ke Kilohana; a $14.1 million decrease in security and escrow deposits due primarily to the utilization of escrowed sales proceeds to fund remaining construction costs at Waiea; a $10.6 million decrease in Other assets primarily relating to third party reimbursements received for improvements made on the Merriweather Post Pavilion in 2016; a $3.3 million decrease in in-place leases and $4.0 million in other immaterial decreases related to Special Improvement District receivable, Below-market ground leases, Above-market ground leases and Equipment, net.

Accounts Payable and Accrued Expenses

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


	June 30,		December 31,
(In thousands)	2017		2016
Construction payables	$	194,065	$	207,917
Condominium deposit liabilities		58,468		117,015
Deferred income		70,814		85,158
Accounts payable and accrued expenses		33,759		33,050
Tenant and other deposits		24,274		28,559
Accrued interest		21,178		16,897
Accrued payroll and other employee liabilities		22,135		36,937
Accrued real estate taxes		13,997		16,726
Interest rate swaps		3,853		(149)
Straight-line ground rent liability		14,044		13,126
Above-market ground leases		880		1,762
Other		15,546		15,012
	$	473,013	$	572,010

The $99.0 million net decrease in total accounts payable and accrued expenses primarily relates to the following decreases: $58.5 million in condominium deposit liabilities for the towers under construction at Ward Village as the projects move toward completion; $14.8 million in accrued payroll and other employee liabilities due to payment in first quarter 2017 of 2016 annual incentive bonus; $14.3 million in deferred income realized in conjunction with revenue deferred for recognition at our Summerlin and Bridgeland MPCs; $13.9 million in construction payables; $4.3 million in tenant and other deposits due primarily to amortization of a tenant’s prepaid rent; $2.7 million in accrued real estate taxes due to timing of payments and $0.8 million in other individually immaterial decreases.

These decreases are partially offset by an increase of $4.3 million in accrued interest primarily due to normal interest accrual activity partially offset by payments relating to redemption of the 2021 senior notes; an increase of $4.0 million in interest rate swaps liability primarily due to a decrease in fair value of the forward-starting swaps and $2.0 million in other individually immaterial increases.