Note 8 – Notes Payable – Convertible: Each of NNN’s outstanding series of convertible notes are summarized in the table below (dollars in thousands, except  conversion price): The carrying amounts of the Company’s convertible debt and equity balances are summarized in the table below as of  December 31 (dollars in thousands): As of December 31, 2013, the debt discount for both the 2028 Notes and the 2026 Notes had been fully amortized. NNN recorded the following in interest expense relating to the 2028 Notes and the 2026 Notes for the years ended December  31 (dollars in thousands): On September 28, 2012, NNN announced that the market price condition on its 2026 Notes has been satisfied, and that the  2026 Notes would be convertible during the calendar quarter beginning October 1, 2012. All note holders elected to exercise the conversion feature of the 2026 Notes prior to their redemption. Pursuant to the terms of  the 2026 Notes, the Company elected to pay the full settlement value in cash. The settlement value of a note was based on an  average of the daily closing price of the Company's common stock over an averaging period that commenced after the  Company received a conversion notice from a note holder. The Company paid approximately $164,649,000 in aggregate  settlement value for the $123,163,000 of settled 2026 Notes at the end of the applicable averaging periods. The difference  between the amount paid and the principal amount of the settled 2026 Notes of $41,486,000 was recognized as a decrease to  additional paid-in capital. As of December 31, 2012, $15,537,000 of the principal amount of 2026 Notes were outstanding. In January 2013, the  Company paid approximately $20,702,000 in aggregate settlement value for the remaining $15,537,000 of outstanding 2026  Notes. The difference between the amount paid and the principal amount of the settled 2026 Notes of $5,028,000 was  recognized as a decrease to additional paid-in capital and $137,000 was recorded as interest expense. As of December 31, 2012, $223,035,000 of the principal amount of 2028 Notes were outstanding. In June 2013, NNN called all  of the outstanding 2028 Notes for redemption on July 11, 2013. On July 11, 2013, $130,000 principal amount of the 2028 Notes  was settled at par plus accrued interest. The holders of the remaining balance of $222,905,000 principal amount of 2028 Notes  elected to convert into cash and shares of the Company's common stock in accordance with the conversion formula which is  Terms 2026 Notes 2028 Notes Issue Date September 2006 March 2008 Net Proceeds $ 168,650 $ 228,576 Stated Interest Rate 3.950% 5.125% Effective Interest Rate 5.840% 7.192% Debt Issuance Costs $ 3,850 $ 5,459 Original Principal $ 172,500 $ 234,035 Repurchases (33,800) (11,000) Settled (138,700) (223,035) Outstanding principal balance at December 31, 2013 $ — $ — 2013 2012 Carrying value of equity component $ — $ (22,193) Principal amount of convertible debt — 238,572 Remaining unamortized debt discount — (2,072) Net carrying value of convertible debt $ — $ 214,307 2013 2012 2011 Noncash interest charges $ 2,072 $ 4,291 $ 5,837 Contractual interest expense 5,400 15,744 16,909 Amortization of debt costs 566 1,149 1,583 $ 8,038 $ 21,184 $ 24,329  62