Income Taxes (Tables)

12 Months Ended

Dec. 31, 2014

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):



	2014			2013
Deferred tax assets:
Cost basis	$	1,233		$	994
Deferred income	113			155
Reserves	2,756			4,728
Credits	434			393
Excess interest expense carryforward	1,689			2,706
Net operating loss carryforward	5,196			5,212
	11,421			14,188
Valuation allowance	(619		)	—
Total deferred tax assets	10,802			14,188

Deferred tax liabilities:
Built-in gain	—			(2,163		)
Depreciation	(204		)	(618		)
Other	(110		)	(779		)
Total deferred tax liabilities	(314		)	(3,560		)

Net deferred tax asset	$	10,488		$	10,628

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):



	2014			2013			2012
Net earnings before income taxes	$	190,844		$	161,230		$	135,124
Provision for income tax benefit (expense):
Current:
Federal	(190		)	(195		)	(136		)
State and local	5			(90		)	(7		)
Deferred:
Federal	(166		)	(790		)	5,871
State and local	108			(10		)	1,163
Total benefit (expense) for income taxes	(243		)	(1,085		)	6,891
Net earnings attributable to NNN’s stockholders	$	190,601		$	160,145		$	142,015

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):



	2014			2013			2012
Federal expense at statutory tax rate	$	(64,887	)	$	(54,818	)	$	(45,942	)
Nontaxable income of NNN	63,353			53,178			44,746
State taxes, net of federal benefit	(196		)	(200		)	(139		)
Amortization of built-in gain tax	372			761			613
Expiration of built-in gain tax	1,792			—			—
Other	(58		)	(6		)	(58		)
Valuation allowance (increase) decrease	(619		)	—			7,671
Total tax benefit (expense)	$	(243	)	$	(1,085	)	$	6,891