NOTE 4 — SUPPLEMENTAL BALANCE SHEET INFORMATION

Restricted Cash

Restricted cash at December 31, 2015 and 2014 includes (in thousands):

	2015		2014
Property taxes	$	2,758	$	2,600
Insurance	322		508
FF&E reserves	18,997		30,301
Other funds in escrow	996		986

	$	23,073	$	34,395

Prepaid Expenses and Other

Prepaid expenses and other at December 31, 2015 and 2014 include (in thousands):

	2015		2014
Earnest money and funds in escrow	$	10,046	$	1,738
Prepaid insurance	813		1,122
Other	4,422		3,321

	$	15,281	$	6,181

Deferred Charges

Deferred charges at December 31, 2015 and 2014 include (in thousands):

	2015		2014
Initial franchise fees	$	4,760	$	6,435
Deferred financing costs	9,804		8,628

	14,564		15,063
Less accumulated amortization	5,376		5,422

Total	$	9,188	$	9,641

Amortization expense for for the years ended December 31, 2015, 2014, and 2013 was (in thousands):

	2015		2014		2013
Initial franchise fees	$	377	$	485	$	411
Deferred financing costs	1,723		1,549		1,854

	$	2,100	$	2,034	$	2,265

Future amortization expense is expected to be (in thousands):

2016	$	2,056
2017	1,747
2018	1,255
2019	757
2020	647
Thereafter	2,726

	$	9,188

Other Assets

Other assets at December 31, 2015 and 2014 include (in thousands):

	2015		2014
Prepaid land lease	$	3,325	$	3,373
Notes receivable	12,803		10,779
Acquired intangible assets	6,122		—

	$	22,250	$	14,152

At December 31, 2015 and 2014, the notes receivable balance detailed above includes amounts drawn under a note funding obligation carrying an interest rate of 10.0% per annum paid monthly, an initial maturity date of May 31, 2017 and an option to extend the maturity date until May 13, 2018. Of the total $10.0 million note funding obligation, $10.0 million and $7.4 million had been advanced at December 31, 2015 and 2014, respectively.

At December 31, 2015, we have notes receivable totaling $2.7 million included in Other Assets on our Consolidated Balance Sheet related to seller-financing for the sale in a prior year of two hotel properties in Emporia, KS. The loans have matured and the buyer is currently in payment default under the terms of the loans. We have initiated proceedings to foreclose on the properties and we have received a judgment of foreclosure on one of the properties and proceedings concerning the other property are ongoing. We expect to reacquire the properties unless the buyer is able to repay the principal and interest, including default interest and fees, on the notes receivable in full prior to the completion of the foreclosure process. We believe the collateral value is sufficient to recover the carrying amounts of the notes receivable. If we reacquire the properties as a result of a foreclosure, then we will classify the properties as held for sale and market them for re-sale to recover the carrying amounts of our notes receivable.

At December 31, 2015, intangible assets consisted of assumed contractual arrangements including terms that were above market compared to an estimated fair market value of the agreement at the acquisition date. These assets are being amortized using the straight-line method over a weighted average amortization period of 30.9 years. Amortization expense is expected to be $0.2 million for each of the next five years.

Accrued Expenses and Other

Accrued expenses and other at December 31, 2015 and 2014 include the following (in thousands):

	2015		2014
Accrued sales, property and income taxes	$	12,901	$	13,346
Accrued salaries and benefits	9,366		8,863
Accrued interest	1,862		2,095
Acquired unfavorable leases	4,907		1,722
Accrued expenses at hotels and other	13,138		12,036

	$	42,174	$	38,062