Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

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):



	2013			2012
Deferred tax assets:
Cost basis	$	994		$	1,118
Deferred income	155			247
Reserves	4,728			3,735
Credits	393			217
Excess interest expense carryforward	2,706			4,508
Net operating loss carryforward	5,212			5,829
	14,188			15,654
Valuation allowance	—			—
Total deferred tax assets	14,188			15,654

Deferred tax liabilities:
Built-in gain	(2,163		)	(2,924		)
Depreciation	(618		)	(756		)
Other	(779		)	(546		)
Total deferred tax liabilities	(3,560		)	(4,226		)

Net deferred tax asset	$	10,628		$	11,428

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):



	2013			2012			2011
Net earnings before income taxes	$	161,230		$	135,124		$	93,302
Provision for income tax benefit (expense):
Current:
Federal	(195		)	(136		)	(166		)
State and local	(90		)	(7		)	(15		)
Deferred:
Federal	(790		)	5,871			(714		)
State and local	(10		)	1,163			(82		)
Total benefit (expense) for income taxes	(1,085		)	6,891			(977		)
Net earnings attributable to NNN’s stockholders	$	160,145		$	142,015		$	92,325

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):



	2013			2012			2011
Federal expense at statutory tax rate	$	(54,818	)	$	(45,942	)	$	(31,723	)
Nontaxable income of NNN	53,178			44,746			30,380
State taxes, net of federal benefit	(200		)	(139		)	(156		)
Amortization of Built-in Gain Tax	761			613			531
Other	(6		)	(58		)	(9		)
Valuation allowance (increase) decrease	—			7,671			—
Total tax benefit (expense)	$	(1,085	)	$	6,891		$	(977	)