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 down of operations. These costs are estimated and are anticipated to be paid out over the liquidation period.

The Company accrued the following revenues and expenses expected to be earned or incurred during liquidation (in thousands):


	March 31, 2018			December 31, 2017
Rents and reimbursements	$	737		$	1,956
Hotel revenues		7,298			11,769
Release of liability		4,270			—
Property operating expenses		(520	)		1,930
Hotel operating expense		(5,473	)		(10,487	)
Interest expense		(52	)		(1,779	)
General and administrative expenses		(11,242	)		(11,137	)
Capital expenditures		(477	)		(920	)
Sales costs		(5,420	)		(18,560	)

Liability for estimated costs in excess of estimated receipts during liquidation	$	(10,879	)	$	(27,228	)

The change in the liability for estimated costs in excess of estimated receipts during liquidation for the three month periods ended March 31, 2018 and 2017 are as follows (in thousands):


	January 1, 2018			Net Change in Working Capital (1)			Remeasurement of Assets and Liabilities			March 31, 2018
Assets:
Estimated net inflows from investments in real estate	$	3,920		$	(2,862	)	$	4,725		$	5,783
Liabilities:
Sales costs		(18,559	)		13,004			135			(5,420	)
Corporate expenditures		(12,589	)		3,529			(2,182	)		(11,242	)

		(31,148	)		16,533			(2,047	)		(16,662	)

Total liability for estimated costs in excess of estimated receipts during liquidation	$	(27,228	)	$	13,671		$	2,678		$	(10,879	)


	January 1, 2017			Net Change in Working Capital (1)			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	)

(1)	Represents changes in cash, restricted cash, accounts receivable, accounts payable and accrued expenses as a result of the Company’s operating activities for the periods ended March 31, 2018 and 2017.