Annual report pursuant to Section 13 and 15(d)

Prepaid Expenses and Other Assets, Net

v3.3.1.900
Prepaid Expenses and Other Assets, Net
12 Months Ended
Dec. 31, 2015
Prepaid Expense and Other Assets [Abstract]  
Prepaid Expenses and Other Assets, Net
Prepaid Expenses and Other Assets, Net
 
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



We recognize a valuation allowance on our deferred tax asset if we believe all or some portion of the asset may not be realized. An increase or decrease in the valuation allowance resulting from a change in circumstances that causes a change in our judgment about the realizability of our deferred tax asset is included in income. The deferred tax asset valuation allowance is due to a decrease in future projected operating income in our TRS resulting primarily from our dispositions of certain properties to which the TRS provided amenity services and our planned reduction in amenity services provided by the TRS at certain other properties. We believe it is more likely than not that the results of future operations in our TRS will generate sufficient taxable income to realize our December 31, 2015 net deferred tax asset.