XML 54 R14.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Notes Payable - Convertible | 3 Months Ended
--- | ---
Mar. 31, 2013
Convertible Notes Payable [Abstract] |
Notes Payable – Convertible | Notes Payable – Convertible: 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)
Earliest Conversion Date (7) |  | — |  |  |  | April 2013 |  |
Earliest Put Option Date |  | — |  |  |  | June 2013 |  |
Maturity Date |  | — |  |  |  | June 2028 |  |
Original Principal |  | $ | 172,500 |  |  |  | $ | 234,035 |  |
Repurchases |  | (33,800 | ) |  |  | (11,000 | ) |
Settled |  | (138,700 | ) |  |  | — |  |
Outstanding principal balance at March 31, 2013 |  | $ | — |  | (8) |  | $ | 223,035 |  |
(1) | Debt issuance costs include underwriting discounts and commissions, legal and accounting fees, rating agency fees and printing expenses. These costs have been deferred and are being amortized over the period to the earliest put option date of the holders using the effective interest method.
(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 39.5149 shares of NNN’s common stock, which is equivalent to a conversion price of $25.3069 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.
(7) | Prior to the earliest respective conversion date, the notes are only convertible in limited circumstances pursuant to the terms of the notes. In March 2013, certain market conditions for the 2028 Notes were satisfied, making the 2028 Notes convertible during the calendar quarter beginning April 1, 2013.
(8) | In January 2013, NNN settled the remaining principal balance of $15,537.
Each series of convertible notes represents a senior, unsecured obligation of NNN and is subordinated to all secured indebtedness of the Company. Each note is redeemable at the option of NNN, in whole or in part, at a redemption price equal to the sum of (i) the principal amount of the notes being redeemed plus accrued and unpaid interest thereon through but not including the redemption date and (ii) the make whole amount, if any, as defined in the applicable supplemental indenture relating to the notes. The carrying values of the Company’s convertible debt and equity components are summarized in the table below (dollars in thousands):
| March 31, 2013 |  | December 31, 2012
Carrying value of equity component | $ | (20,720 | ) |  | $ | (22,193 | )
Principal amount of convertible debt | 223,035 |  |  | 238,572 |
Remaining unamortized debt discount | (951 | ) |  | (2,072 | )
Net carrying value of convertible debt | $ | 201,364 |  |  | $ | 214,307 |
As of March 31, 2013, the remaining amortization period for the 2028 Notes debt discount was approximately three months and the 2026 Notes debt discount had been fully amortized. NNN recorded the following in interest expense relating to the 2026 Notes and the 2028 Notes (dollars in thousands):
| Quarter Ended March 31,
| 2013 |  | 2012
Noncash interest charges | $ | 1,122 |  |  | $ | 1,044 |
Contractual interest expense | 2,858 |  |  | 4,227 |
Amortization of debt costs | 305 |  |  | — |
Total interest expense | $ | 4,285 |  |  | $ | 5,271 |
The if-converted value of the 2028 Notes exceeded the principal amount by $95,739,000 as of March 31, 2013. As of December 31, 2012, the if-converted values which exceeded the principal amount were $5,125,000 and $51,764,000 for the 2026 Notes and the 2028 Notes, respectively. As of December 31, 2012, $15,537,000 of the principal amount of 2026 Notes were outstanding. In January 2013, the Company paid approximately $20,565,000 in aggregate settlement value for the $15,537,000 of settled notes. The difference between the amount paid and the principal amount of the settled notes of $5,028,000 was recognized as a decrease to additional paid-in capital.

X
- Definition Information about debt arrangements, which includes amounts of borrowings under each covertible note payable and any other contractual agreement to repay funds, and about the underlying arrangements including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References No definition available. + Details
Name: | nnn_ConvertibleNotesPayableTextBlock
Namespace Prefix: | nnn_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_ConvertibleLongtermNotesPayableCurrentAndNoncurrentAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration