4.	Liability for Estimated Costs in Excess of Estimated Receipts During Liquidation

The liquidation basis of accounting requires the Liquidating Trust to estimate net cash flows from operations and to accrue all costs associated with implementing and completing the plan of liquidation. The Liquidating Trust currently estimates that it will have costs in excess of estimated receipts during the liquidation. These amounts can vary significantly due to, among other things, the timing and estimates for executing and renewing leases, estimates of tenant improvement costs, the timing of property sales, direct costs incurred to complete the sales, the timing and amounts associated with discharging known and contingent liabilities and the costs associated with the winding up of operations. These costs are estimated and are anticipated to be paid out over the liquidation period.

As of December 31, 2016 and 2015, the Liquidating Trust and Winthrop, respectively, had accrued the following revenues and expenses expected to be earned or incurred during liquidation (in thousands):


	December 31, 2016			December 31, 2015
Rents and reimbursements	$	14,369		$	29,636
Interest and dividends		1,036			3,646
Property operating expenses		(4,803	)		(10,756	)
Interest expense		(4,911	)		(7,546	)
General and administrative expenses		(24,866	)		(34,264	)
Capital expenditures		(1,159	)		(4,027	)
Sales costs		(2,852	)		(5,986	)

Liability for estimated costs in excess of estimated receipts during liquidation	$	(23,186	)	$	(29,297	)

The change in the liability for estimated costs in excess of estimated receipts during liquidation as of December 31, 2016 is as follows (in thousands):


	December 31, 2015			Cash Payments (Receipts)			Remeasurement of Assets and Liabilities			Consolidation (1)			December 31, 2016
Assets:
Estimated net inflows from investments in real estate, loans receivable and secured financing receivable	$	10,523		$	(4,847	)	$	(978	)	$	(1,306	)	$	3,392

Liabilities:
Sales costs		(5,986	)		3,215			363			(443	)		(2,851	)
Corporate expenditures		(33,834	)		7,351			2,756			—			(23,727	)

		(39,820	)		10,566			3,119			(443	)		(26,578	)

Total liability for estimated costs in excess of estimated receipts during liquidation	$	(29,297	)	$	5,719		$	2,141		$	(1,749	)	$	(23,186	)

(1)	Due to a change in exit strategy, the venture that owns property in Oklahoma City, Oklahoma is no longer accounted for using the equity method. See Note 3 – Basis of Presentation for the Liquidating Trust’s policy on accounting for joint ventures.

The change in the liability for estimated costs in excess of estimated receipts during liquidation as of December 31, 2015 is as follows (in thousands):


	December 31, 2014			Cash Payments (Receipts)			Remeasurement of Assets and Liabilities			Deconsolidation (1)		December 31, 2015
Assets:
Estimated net inflows from investments in real estate, loans receivable and secured financing receivable	$	25,169		$	(12,551	)	$	(2,149	)	$	54	$	10,523

Liabilities:
Sales costs		(11,840	)		1,012			423			4,419		(5,986	)
Corporate expenditures		(44,582	)		12,471			(1,723	)		—		(33,834	)

		(56,422	)		13,483			(1,300	)		4,419		(39,820	)

Total liability for estimated costs in excess of estimated receipts during liquidation	$	(31,253	)	$	932		$	(3,449	)	$	4,473	$	(29,297	)

(1)	Due to a change in exit strategy, the venture that owns the property located at 450 W 14^th Street, New York, New York is no longer consolidated. See Note 3 – Basis of Presentation for Winthrop’s policy on accounting for joint ventures.