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

Prepaid Expenses and Other Assets, Net (Tables)

12 Months Ended

Dec. 31, 2016

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



	December 31,
	2016		2015
Prepaid expenses	$	24,432	$	23,009
Lease incentives, net	18,276		11,133
Construction contract costs incurred in excess of billings	10,350		3,261
Furniture, fixtures and equipment, net	5,204		6,004
Deferred financing costs, net (1)	3,128		5,867
Deferred tax asset, net	3,036		3,467
Non-real estate equity method investments	2,355		1,636
Other assets	5,983		5,647
Prepaid expenses and other assets, net	$	72,764	$	60,024

(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,
	2016			2015
Operating loss carry forward	$	5,084		$	5,065
Share-based compensation	13			363
Accrued payroll	101			133
Property	(100		)	(32		)
Valuation allowance	(2,062		)	(2,062		)
Deferred tax asset, net	$	3,036		$	3,467