Real Estate – Impairments Management periodically assesses its real estate for possible impairment whenever certain events or changes in circumstances  indicate that the carrying amount of the asset, including accrued rental income, may not be recoverable through operations.  Events or circumstances that may occur include significant changes in real estate market conditions and the ability of NNN to  re-lease or sell properties that are vacant or become vacant. Impairments are measured as the amount by which the current book  value of the asset exceeds the estimated fair value of the asset. As a result of the Company’s review of long lived assets,  including identifiable intangible assets, NNN recognized the following real estate impairments for the years ended December  31 (dollars in thousands): The valuation of impaired assets is determined using widely accepted valuation techniques including discounted cash flow  analysis, income capitalization, analysis of recent comparable sales transactions, actual sales negotiations and bona fide  purchase offers received from third parties, which are level 3 inputs. NNN may consider a single valuation technique or  multiple valuation techniques, as appropriate, when measuring the fair value of its real estate. In connection with the default of a note receivable and certain lease agreements between NNN and one of its tenants, in June  2009, NNN acquired the operations of an auto service business that operated certain Properties. The note foreclosure resulted in  a loss of $7,816,000. NNN recorded the value of the assets received at fair value. No liabilities were assumed. The fair value of  the assets resulted in goodwill of $3,400,000. In connection with the annual review of goodwill for impairment, NNN  recognized a noncash impairment charge of $1,500,000 included in Impairment losses and other charges, net of recoveries in  the Consolidated Statements of Comprehensive Income during the year ended December 31, 2011. Mortgage notes are secured by real estate, real estate securities or other assets. Mortgages and notes receivable consisted of the  following at December 31 (dollars in thousands): During the year ended December 31, 2011, $3,115,000 of a previously recorded valuation reserve was recovered and included  in Impairment losses and other charges, net of recoveries in the Consolidated Statements of Comprehensive Income. During the  years ended December 31, 2013 and 2012, NNN did not record or recover any valuation reserves. NNN holds the commercial mortgage residual interests (“Residuals”) from seven securitizations. Each of the Residuals is  recorded at fair value based upon an independent valuation. Unrealized gains and losses are reported as other comprehensive  income in stockholders’ equity and other than temporary losses as a result of a change in the timing or amount of estimated  cash flows are recorded as an other than temporary valuation impairment. Note 5 – Commercial Mortgage Residual Interests: Note 4 – Mortgages, Notes and Accrued Interest Receivable: Note 3 – Business Combinations: 2013 2012 2011 Continuing operations $ 1,957 $ 3,258 $ — Discontinued operations 2,149 7,054 431 $ 4,106 $ 10,312 $ 431 2013 2012 Mortgages and notes receivable $ 16,942 $ 26,952 Accrued interest receivables 177 858 Unamortized discount — (40) $ 17,119 $ 27,770  59