Other Assets and Liabilities

9 Months Ended

Sep. 30, 2020

OTHER ASSETS AND LIABILITIES

Other Assets and Liabilities

6. Other Assets and Liabilities

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

thousands	September 30, 2020		December 31, 2019		$ Change
Special Improvement District receivable (a)	$	60,198	$	42,996	$	17,202
Straight-line rent	59,354		56,223		3,131
Condominium inventory	57,481		56,421		1,060
Security, escrow, and other deposits (b)	48,975		17,464		31,511
In-place leases	50,434		54,471		(4,037		)
Intangibles	32,765		33,275		(510		)
Prepaid expenses (c)	24,029		13,263		10,766
Other	11,155		9,252		1,903
Tenant incentives and other receivables	10,000		7,556		2,444
Federal income tax receivable	2,389		655		1,734
TIF receivable	1,980		3,931		(1,951		)
Food and beverage and lifestyle inventory (d)	1,117		4,310		(3,193		)
Above-market tenant leases	367		556		(189		)
Prepaid expenses and other assets, net	$	360,244	$	300,373	$	59,871

(a) The increase in Special Improvement District receivable is primarily attributable to a new SID Bond issuance in Summerlin.

(b) The increase in Security, escrow, and other deposits is primarily attributable to rate-lock and security deposits for The Woodlands Towers at the Waterway.

(c) The increase in Prepaid expenses is mainly due to the timing of insurance and property tax prepayments, as well as assets being placed into service.

(d) The decrease in Food and beverage and lifestyle inventory is predominantly due to the write-off of inventory at 10 Corso Como Retail and Café in the first quarter of 2020.

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

thousands	September 30, 2020		December 31, 2019		$ Change
Condominium deposit liabilities (a)	$	297,400	$	194,794	$	102,606
Construction payables (b)	268,145		261,523		6,622
Deferred income	58,131		63,483		(5,352		)
Interest rate swap liabilities (c)	56,931		40,135		16,796
Accrued real estate taxes	40,797		27,559		13,238
Tenant and other deposits	29,883		24,080		5,803
Accrued payroll and other employee liabilities (d)	26,230		44,082		(17,852		)
Accounts payable and accrued expenses	26,540		37,480		(10,940		)
Accrued interest	13,204		23,838		(10,634		)
Other	12,948		16,173		(3,225		)
Accounts payable and accrued expenses	$	830,209	$	733,147	$	97,062

(a) The increase in Condominium deposit liabilities is attributable to contracted sales at Victoria Place, Kô'ula, and ‘A‘ali‘i.

(b) The increase in Construction payables is primarily attributable to a $97.9 million charge for repairs and remediation on certain alleged construction defects at the Waiea condominium tower (see Note 10 - Commitments and Contingencies for details), partially offset by a decrease of $39.3 million related to the deconsolidation of 110 North Wacker (see Note 3 - Real Estate and Other Affiliates for details), as well as a reduction in construction spend of $51.8 million primarily related to several projects approaching completion.

(c) The increase in Interest rate swap liabilities is due to a decrease of the one-month London Interbank Offered Rate (“LIBOR”) forward curve for the periods presented, partially offset by a decrease of $15.2 million related to the deconsolidation of 110 North Wacker.

(d)

The decrease in Accrued payroll and other employee liabilities is primarily due to the payment of the 2019 annual incentive bonus payment in the first quarter of 2020, as well as the payment of relocation, retention and severance expenses in 2020, related to the corporate restructuring.