Income Taxes (Tables)

12 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Schedule of Deferred Tax Assets and Liabilities

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

	2015			2014
Deferred tax assets:
Cost basis	$	—		$	1,233
Deferred income	—			113
Reserves	—			2,756
Credits	—			434
Excess interest expense carryforward	—			1,689
Capital loss carryforward	880			914
Net operating loss carryforward	4,983			5,196
	5,863			12,335
Valuation allowance	(5,666		)	(619		)
Total deferred tax assets	197			11,716
Deferred tax liabilities:
Built-in gain	(197		)	—
Depreciation	—			(204		)
Other	—			(1,024		)
Total deferred tax liabilities	(197		)	(1,228		)
Net deferred tax asset	$	—		$	10,488

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):

	2015			2014			2013
Net earnings before income taxes	$	208,511		$	190,844		$	161,230
Provision for income tax benefit (expense):
Current:
Federal	(58		)	(190		)	(195		)
State and local	(129		)	5			(90		)
Deferred:
Federal	(8,935		)	(166		)	(790		)
State and local	(1,553		)	108			(10		)
Total expense for income taxes	(10,675		)	(243		)	(1,085		)
Net earnings attributable to NNN’s stockholders	$	197,836		$	190,601		$	160,145

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):

	2015			2014			2013
Federal expense at statutory tax rate	$	(70,894	)	$	(64,887	)	$	(54,818	)
Nontaxable income of NNN	69,651			63,353			53,178
State taxes, net of federal benefit	(141		)	(196		)	(200		)
Amortization of built-in gain tax	—			372			761
Expiration of built-in gain tax	316			1,792			—
Other	—			(58		)	(6		)
Built-in gain tax liability (1)	(197		)	—			—
TRS Revocation Election (1)	(4,363		)	—			—
Valuation allowance increase (1)	(5,047		)	(619		)	—
Total tax expense	$	(10,675	)	$	(243	)	$	(1,085	)

⁽¹⁾ The change for the year ended December 31, 2015, is due to TRS Revocation Election.