Notes Payable - Convertible (Tables)

6 Months Ended

Jun. 30, 2013

Convertible Notes Payable [Abstract]

Schedule of Debt

Each of NNN’s outstanding series of convertible notes is summarized in the table below (dollars in thousands, except conversion price):

Terms	2026 Notes(1)(2)			2028 Notes(1)(3)(4)
Issue Date	September 2006			March 2008
Net Proceeds	$	168,650		$	228,576
Stated Interest Rate	3.950		%	5.125		%
Effective Interest Rate (6)	5.840		%	7.192		%
Debt Issuance Costs	$	3,850		$	5,459		(5)
Maturity Date	—			June 2028
Original Principal	$	172,500		$	234,035
Repurchases	(33,800		)	(11,000		)
Settled	(138,700		)	(91		)
Outstanding principal balance at June 30, 2013	$	—		$	222,944

⁽¹⁾  Debt issuance costs include underwriting discounts and commissions, legal and accounting fees, rating agency fees and printing expenses. These costs were deferred and amortized using the effective interest method and are fully amortized at June 30, 2013.

⁽²⁾  The conversion rate per $1 principal amount was 42.6237 shares of NNN’s common stock, which is equivalent to a conversion price of $23.4611 per share of common stock.

⁽³⁾  The conversion rate per $1 principal amount was 39.5360 shares of NNN’s common stock, which is equivalent to a conversion price of $25.2934 per share of common stock.

⁽⁴⁾  NNN repurchased $11,000 in 2009 for a purchase price of $8,588 resulting in a gain of $1,867.

⁽⁵⁾  Includes $219 of note costs which were written off in connection with the repurchase of $11,000 of the 2028 Notes.

⁽⁶⁾  With the adoption of the accounting guidance on convertible debt securities in 2009, the effective interest rates for the 2026 Notes and the 2028 Notes are 5.840% and 7.192%, respectively.

Schedule of Long-term Debt Instruments

The carrying values of the Company’s convertible debt and equity components are summarized in the table below (dollars in thousands):

	June 30, 2013			December 31, 2012
Principal amount of convertible debt	$	222,944		$	238,572
Carrying value of equity component	(20,711		)	(22,193		)
Remaining unamortized debt discount	—			(2,072		)
Net carrying value of convertible debt	$	202,233		$	214,307

Schedule of Debt Instrument Interest Expense

NNN recorded the following in interest expense relating to the 2026 Notes and the 2028 Notes (dollars in thousands):

	Quarter Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Contractual interest expense	$	2,516	$	4,227	$	5,374	$	8,455
Noncash interest charges	950		1,063		2,072		2,107
Amortization of debt costs	260		284		566		560
Total interest expense	$	3,726	$	5,574	$	8,012	$	11,122