Note 4 - Liability for Estimated Costs in Excess of Estimated Receipts During Liquidation

The liquidation basis of accounting requires the Company to estimate net cash flows from operations and to accrue all costs associated with implementing and completing the plan of liquidation. The Company currently estimates that it will have costs in excess of estimated receipts during the liquidation. These amounts can vary significantly due to, among other things, the timing and estimates for executing and renewing leases, estimates of tenant improvement costs, the timing of property sales, direct costs incurred to complete the sales, the timing and amounts associated with discharging known and contingent liabilities and the costs associated with the winding up of operations. These costs are estimated and are anticipated to be paid out over the liquidation period.

Upon transition to the liquidation basis of accounting on January 1, 2017, the Company accrued the following revenues and expenses expected to be earned or incurred during liquidation (in thousands):


	Amount
Rents and reimbursements	$	102,309
Hotel revenues		25,261
Property operating expenses		(27,006	)
Hotel operating expense		(21,467	)
Interest expense		(39,756	)
General and administrative expenses		(40,124	)
Capital expenditures		(8,274	)
Sales costs		(69,524	)

Liability for estimated costs in excess of estimated receipts during liquidation	$	(78,581	)

The change in the liability for estimated costs in excess of estimated receipts during liquidation as of March 31, 2017 is as follows (in thousands):


	January 1, 2017			Net Change in Working Capital			Remeasurement of Assets and Liabilities			March 31, 2017
Assets:
Estimated net inflows from investments in real estate	$	58,303		$	(22,209	)	$	309		$	36,403
Liabilities:
Sales costs		(69,524	)		—			—			(69,524	)
Corporate expenditures		(67,360	)		17,795			(188	)		(49,753	)

		(136,884	)		17,795			(188	)		(119,277	)

Total liability for estimated costs in excess of estimated receipts during liquidation	$	(78,581	)	$	(4,414	)	$	121		$	(82,874	)