Note 18 – Insurance Recoverable

We have filed an insurance claim with our Insurer with respect to earthquake damage to our parking building adjacent to our Courtenay Central entertainment-themed center (“ETC”) in Wellington, New Zealand and to Courtenay Central itself. Our accounting policy allows us to record a recoverable asset (to the extent of incurred losses) only when we determined that the collectability is deemed probable. We have concluded that the total incurred losses, consisting of the (i) written down carrying value of the damaged parking building and (ii) a significant portion of the derivative loss contingencies on demolition activities, to have probable likelihood of recovery.

The table below provides the determination of the recoverable amounts under our insurance claim:


	Determination of Insurance Recoverable
(mainly New Zealand Dollars in thousands, unless otherwise noted)	December 31, 2016(5)			Changes in Estimate			March 31, 2017(5)
Written down value of parking building(1)	NZ	$	13,451	NZ	$	347	NZ	$	13,798
Estimated demolition costs and others(2)			7,276			82			7,358
Total expected incurred losses			20,727			429			21,156
Less: advance payment from Insurer(3)(4)			(7,103)			--			(7,103)
Insurance Recoverable for Incurred Losses (in local currency)	NZ	$	13,624	NZ	$	429	NZ	$	14,053
Insurance Recoverable for Incurred Losses (in U.S. Dollars)(4)	US	$	9,480	US	$	306	US	$	9,839

(1) Recorded land value was excluded in the impairment determination.

(2) $306,000 (NZ$429,000) represents changes in our initial estimates for demolition costs, which are allowable to be recorded in the period of change. Also, this amount included legal costs incurred during the insurance claim process which are reimbursable under our insurance policy.

(3) This represents the advance claims settlement from the Insurer of $5.0 million (NZ$7.1 million).

(4) In line with our standard translation policy, balance sheet items were translated into U.S. dollars based on the spot exchange rate as of March 31, 2017 and December 31, 2016, while the impact on our statement of income was translated using the average exchange rate for the current quarter.

(5) The insurance recoverable of $9.5 million (NZ$13.6 million) as of December 31, 2016 was presented as part of “Other non-current assets” as the timing of the insurance claim receipt is not fixed nor reliably determinable at the time of issuance of the 2016 Form 10-K. Subsequently, we reclassified the insurance recoverable of $9.8 million (NZ$14.1 million) as of March 31, 2017 to a current asset category as part of “Prepaid and other current assets” based on latest developments on our insurance claim, where we expect to receive the final settlement in less than a year. Refer to further details in Note 19 – Subsequent Events.