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

Prepaid Expenses and Other Assets, Net (Tables)

12 Months Ended

Dec. 31, 2017

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



	December 31,
	2017		2016
Prepaid expenses	$	24,670	$	24,432
Lease incentives, net	19,011		18,276
Furniture, fixtures and equipment, net	5,256		5,204
Construction contract costs incurred in excess of billings	4,884		10,350
Interest rate derivatives	3,073		158
Non-real estate equity method investments	2,412		2,355
Deferred tax asset, net	1,892		3,036
Deferred financing costs, net (1)	1,202		3,128
Other assets	4,821		5,825
Prepaid expenses and other assets, net	$	67,221	$	72,764

(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,
	2017			2016
Operating loss carry forward	$	3,209		$	5,084
Share-based compensation	7			13
Accrued payroll	49			101
Property	43			(100		)
Valuation allowance	(1,416		)	(2,062		)
Deferred tax asset, net	$	1,892		$	3,036