Income Taxes (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Deferred Tax Assets and Liabilities

The significant components of the net income tax asset consist of the following at December 31 (dollars in thousands):



	2012			2011
Deferred tax assets:
Cost basis	$	1,118		$	386
Deferred income	247			151
Reserves	3,735			11,035
Goodwill	—			3,524
Excess interest expense carryforward	4,508			5,299
Net operating loss carryforward	5,829			6,805
	15,437			27,200
Valuation allowance	—			(18,021		)
Total deferred tax assets	15,437			9,179

Deferred tax liabilities:
Built-in gain	(2,924		)	(3,537		)
Depreciation	(756		)	(1,103		)
Other	(546		)	(267		)
Total deferred tax liabilities	(4,226		)	(4,907		)

Net deferred tax asset	$	11,211		$	4,272

Schedule of Components of Income Tax Expense (Benefit)

The income tax benefit (expense) consists of the following components for the years ended December 31, (as adjusted) (dollars in thousands):



	2012			2011			2010
Net earnings before income taxes	$	135,124		$	93,302		$	74,097
Provision for income tax benefit (expense):
Current:
Federal	(41		)	(79		)	(254		)
State and local	(7		)	(15		)	(48		)
Deferred:
Federal	5,776			(801		)	(744		)
State and local	1,163			(82		)	(54		)
Total benefit (expense) for income taxes	6,891			(977		)	(1,100		)
Net earnings attributable to NNN’s stockholders	$	142,015		$	92,325		$	72,997

Schedule of Effective Income Tax Rate Reconciliation

The total income tax benefit (expense) differs from the amount computed by applying the statutory federal tax rate to net earnings before taxes as follows for the years ended December 31 (dollars in thousands):



	2012			2011			2010

Federal benefit (expense) at statutory tax rate	$	(45,942	)	$	(31,723	)	$	(25,193	)
Nontaxable income of NNN	44,746			30,380			26,415
State taxes, net of federal benefit	(139		)	(156		)	142
Amortization of Built-in Gain Tax for GAAP	613			531			663
Other	(58		)	(9		)	(6		)
Valuation allowance (increase) decrease	7,671			—			(3,121		)
Total tax benefit (expense)	$	6,891		$	(977	)	$	(1,100	)