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

Prepaid Expenses and Other Assets, Net (Tables)

12 Months Ended

Dec. 31, 2019

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



	December 31,
	2019		2018
Lease incentives, net	$	28,433	$	21,258
Prepaid expenses	18,835		25,658
Construction contract costs in excess of billings	17,223		3,189
Furniture, fixtures and equipment, net (1)	7,823		8,630
Non-real estate equity investments	6,705		5,940
Deferred financing costs, net (2)	3,633		4,733
Restricted cash	3,397		3,884
Deferred tax asset, net	2,328		2,084
Interest rate derivatives	23		5,617
Other assets	4,616		6,337
Total for COPLP and subsidiaries	93,016		87,330
Marketable securities in deferred compensation plan	3,060		3,868
Total for COPT and subsidiaries	$	96,076	$	91,198

(1) Includes $1.2 million in finance right-of-use assets as of December 31, 2019.

(2) 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,
	2019			2018
Operating loss carry forward	$	2,885		$	4,354
Property	(77		)	427
Share-based compensation	—			28
Accrued payroll	—			2
Valuation allowance	(480		)	(2,727		)
Deferred tax asset, net	$	2,328		$	2,084