COPT Defense Properties Annual report pursuant to Section 13 and 15(d)

Prepaid Expenses and Other Assets, Net (Tables)

12 Months Ended

Dec. 31, 2015

Prepaid expenses and other assets, net consisted of the following (in thousands):



	December 31,
	2015		2014
Prepaid expenses	$	23,009	$	20,570
Lease incentives	11,133		13,344
Furniture, fixtures and equipment, net	6,004		6,637
Deferred financing costs, net (1)	5,867		4,849
Deferred tax asset, net	3,467		4,002
Construction contract costs incurred in excess of billings	3,261		6,656
Equity method investments	1,636		2,368
Other assets	5,647		2,875
Prepaid expenses and other assets, net	$	60,024	$	61,301

(1) Represents deferred costs, net of accumulated amortization, attributable to our Revolving Credit Facility and interest rate derivatives.

Deferred tax asset, net reported above includes the following tax effects of temporary differences and carry forwards of our TRS (in thousands):



	December 31,
	2015			2014
Operating loss carry forward	$	5,065		$	5,012
Share-based compensation	363			976
Accrued payroll	133			195
Property	(32		)	(119		)
Valuation allowance	(2,062		)	(2,062		)
Deferred tax asset, net	$	3,467		$	4,002