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)	2017		2016
Condominium deposits	$	320,097	$	193,197
Condominium receivables (a)		213,158		210,219
Special Improvement District receivable		55,841		61,603
Straight-line rent		36,365		31,518
In-place leases		11,209		16,015
Below-market ground leases		18,732		18,986
Above-market tenant leases		1,786		2,457
Equipment, net of accumulated depreciation of $6.5 million and $4.9 million, respectively		17,364		17,556
Security and escrow deposits		48,277		61,304
Tenant incentives and other receivables		8,976		8,773
Prepaid expenses		13,197		11,177
Federal income tax receivable		8,513		15,763
Intangibles		35,368		4,046
Interest rate swap derivative assets		3,244		—
Other		3,892		13,902
	$	796,019	$	666,516

(a)

We expect $140.5 million of the Condominium receivables outstanding at September 30, 2017 to be collected in 2017 upon closing Anaha and the remaining contracted units at Waiea. Of the remaining, $71.4 million related to Ae`o will be collected in 2018, and $1.3 million relating to Ke Kilohana will be collected in 2019.

The $129.5 million net increase primarily relates to the following increases: a $126.9 million increase in condominium deposits recorded with respect to sales at Anaha, Ae`o and Ke Kilohana; a $31.3 million increase in intangibles primarily due to our acquisition of our partner’s 50.0% interest in the Las Vegas 51s; $4.8 million increase in straight-line rent due to additional Operating Assets placed in service during the year; $3.2 million increase in derivative asset; a $2.9 million increase in condominium receivables recorded with respect to sales recognized on a percentage of completion basis and $2.4 million in other increases related to prepaid expenses and tenant incentives and other receivables due to various tenant activities.

These increases were partially offset by the following decreases: a $13.0 million decrease in security and escrow deposits due primarily to the utilization of escrowed sales proceeds to fund remaining construction costs at Waiea; a $10.0 million decrease in Other assets primarily relating to third party reimbursements received for improvements made on the Merriweather Post Pavilion in 2016; a $7.3 million decrease in federal income tax receivable due to the receipt of an IRS tax refund; a $5.8 million decrease in Special Improvement District receivables due to reimbursements received related to our Summerlin MPC; a $4.8 million decrease in in-place leases and $1.1 million in other decreases related to Below-market ground leases, Above-market tenant leases and Equipment, net.

Accounts Payable and Accrued Expenses

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


	September 30,		December 31,
(In thousands)	2017		2016
Construction payables	$	183,585	$	207,917
Condominium deposit liabilities		64,457		117,015
Deferred income		49,053		85,158
Accounts payable and accrued expenses		33,466		33,050
Tenant and other deposits		19,506		28,559
Accrued interest		8,256		16,897
Accrued payroll and other employee liabilities		26,685		36,937
Accrued real estate taxes		21,525		16,726
Interest rate swaps		7,742		(149)
Straight-line ground rent liability		14,493		13,126
Above-market ground leases		587		1,762
Other		33,498		15,012
	$	462,853	$	572,010

The $109.2 million net decrease in total accounts payable and accrued expenses primarily relates to the following decreases: $52.6 million in condominium deposit liabilities for the towers under construction at Ward Village as the projects move toward completion; $36.1 million in deferred income recognized in conjunction with revenue previously deferred at our Summerlin and Bridgeland MPCs; $24.3 million in construction payables; $10.3 million in accrued payroll and other employee liabilities due to payment in both the first quarters of annual incentive bonuses for 2016 and 2015, respectively; $9.1 million in tenant and other deposits due primarily to amortization of a tenant’s prepaid rent; $8.6 million in accrued interest due to lower interest accrual activity relating to the issuance of the 2025 Notes at a lower rate than the 6.875% senior notes and $1.2 million in other decreases related to above-market ground leases.

These decreases are partially offset by an increase of $18.5 million in other liabilities; an increase of $7.9 million in interest rate swaps liability primarily due to a decrease in fair value of the forward-starting swaps; a $4.8 million increase in accrued real estate taxes due to timing of payments; and $1.8 million in other increases related to accounts payable and accrued expenses and straight-line ground rent liability.