Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

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):



	2016			2015
Deferred tax assets:
Capital loss carryforward	$	830		$	880
Net operating loss carryforward	5,088			4,983
	5,918			5,863
Valuation allowance	(5,743		)	(5,666		)
Total deferred tax assets	175			197

Deferred tax liabilities:
Built-in gain	(175		)	(197		)
Total deferred tax liabilities	(175		)	(197		)

Net deferred tax asset	$	—		$	—

Schedule of Components of Income Tax Expense (Benefit)

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



	2016		2015			2014
Net earnings before income taxes	$	239,500	$	208,511		$	190,844
Provision for income tax benefit (expense):
Current:
Federal	—		(58		)	(190		)
State and local	—		(129		)	5
Deferred:
Federal	—		(8,935		)	(166		)
State and local	—		(1,553		)	108
Total expense for income taxes	—		(10,675		)	(243		)
Net earnings attributable to NNN’s stockholders	$	239,500	$	197,836		$	190,601

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):



	2016			2015			2014
Federal expense at statutory tax rate	$	—		$	(70,894	)	$	(64,887	)
Nontaxable income of NNN	—			69,651			63,353
State taxes, net of federal benefit	—			(141		)	(196		)
Amortization of built-in gain tax	—			—			372
Expiration of built-in gain tax	—			316			1,792
Other	55			—			(58		)
Built-in gain tax liability ⁽¹⁾	22			(197		)	—
TRS Revocation Election ⁽¹⁾	—			(4,363		)	—
Valuation allowance increase ⁽¹⁾	(77		)	(5,047		)	(619		)
Total tax expense	$	—		$	(10,675	)	$	(243	)

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