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

Annual report pursuant to Section 13 and 15(d)

Prepaid Expenses and Other Assets

Prepaid Expenses and Other Assets

12 Months Ended

Dec. 31, 2012

Prepaid Expense and Other Assets [Abstract]

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



	December 31,
	2012		2011
Mortgage and other investing receivables	$	33,396	$	27,998
Prepaid expenses	19,270		20,035
Furniture, fixtures and equipment, net	7,991		10,177
Deferred tax asset	6,612		6,923
Lease incentives	5,578		5,233
Other assets	4,608		13,284
Prepaid expenses and other assets	$	77,455	$	83,650

Mortgage and Other Investing Receivables

Mortgage and other investing receivables consisted of the following (in thousands):



	December 31,
	2012		2011
Notes receivable from City of Huntsville	$	33,252	$	17,741
Mortgage loans receivable	144		10,257
	$	33,396	$	27,998

Our notes receivable from the City of Huntsville funded infrastructure costs in connection with our LW Redstone Company, LLC joint venture (see Note 6). As of December 31, 2012, our mortgage loans receivable reflected above consisted of one loan secured by a property in Greater Baltimore. We did not have an allowance for credit losses in connection with these receivables at December 31, 2012 or December 31, 2011. The fair value of our mortgage and other investing receivables totaled $33.4 million at December 31, 2012 and $28.0 million at December 31, 2011.

Operating Notes Receivable

We had operating notes receivable due from tenants with terms exceeding one year totaling $271,000 at December 31, 2012 and $530,000 at December 31, 2011. We carried allowances for estimated losses for most of these balances.