NNN discontinues hedge accounting prospectively when it is determined that the derivative is no longer effective in offsetting  changes in the cash flows of the hedged item, the derivative expires or is sold, terminated, or exercised, the derivative is re- designated as a hedging instrument or management determines that designation of the derivative as a hedging instrument is no  longer appropriate. When hedge accounting is discontinued, NNN continues to carry the derivative at its fair value on the  balance sheet, and recognizes any changes in its fair value in earnings or may choose to cash settle the derivative at that time. In April 2013, NNN terminated four forward starting swaps with an aggregate notional amount of $240,000,000 that were  hedging the risk of changes in forecasted interest payments on a forecasted issuance of long-term debt. When terminated, the  fair value of the forward starting swaps designated as cash flow hedges, was a liability of $3,156,000, of which $3,141,000 was  deferred in other comprehensive income. The amount reported in accumulated other comprehensive income will be reclassified  to interest expense as interest payments are made on the 2023 Notes. In June 2011, NNN terminated its two treasury locks with a total notional amount of $150,000,000 that were hedging the risk of  changes in the interest-related cash outflows associated with the potential issuance of long-term debt. The fair value of the  treasury locks, designated as cash flow hedges, when terminated was a liability of $5,300,000, of which $5,218,000 was  deferred in other comprehensive income. In September 2007, NNN terminated two interest rate hedges with a combined notional amount of $100,000,000 that were  hedging the risk of changes in forecasted interest payments on a forecasted issuance of long-term debt. The fair value of the  interest rate hedges when terminated was a liability of $3,260,000, of which $3,228,000 was deferred in other comprehensive  income. In June 2004, NNN terminated its forward-starting interest rate swaps with a notional amount of $94,000,000 that were hedging  the risk of changes in forecasted interest payments on a forecasted issuance of long-term debt. The fair value of the interest rate  swaps when terminated was an asset of $4,148,000, which was deferred in other comprehensive income. As of December 31, 2013, $8,396,000 remains in other comprehensive income related to the effective portion of NNN’s  previous interest rate hedges. During the years ended December 31, 2013, 2012 and 2011, NNN reclassified $438,000,  $231,000 and $9,000 out of other comprehensive income as an increase to interest expense. Over the next 12 months, NNN  estimates that an additional $849,000 will be reclassified as an increase in interest expense. Amounts reported in accumulated  other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on  NNN’s long-term debt. NNN does not use derivatives for trading or speculative purposes or currently have any derivatives that are not designated as  hedges. NNN had no derivative financial instruments outstanding at December 31, 2013. In June 2007, NNN filed a registration statement on Form S-8 with the Commission which permits the issuance of up to  5,900,000 shares of common stock pursuant to NNN’s 2007 Performance Incentive Plan (the “2007 Plan”). The 2007 Plan  replaced NNN’s previous Performance Incentive Plan. The 2007 Plan allows NNN to award or grant to key employees,  directors and persons performing consulting or advisory services for NNN or its affiliates, stock options, stock awards, stock  appreciation rights, Phantom Stock Awards, Performance Awards and Leveraged Stock Purchase Awards, each as defined in the  2007 Plan. There were no options outstanding or exercisable at December 31, 2013. Pursuant to the 2007 Plan, NNN has granted and issued shares of restricted stock to certain officers and key associates of NNN.  The following summarizes the restricted stock activity for the year ended December 31, 2013: Note 17 – Performance Incentive Plan: Number of Shares Weighted Average Share Price Non-vested restricted shares, January 1 964,612 $ 23.40 Restricted shares granted 298,896 33.73 Restricted shares vested (446,607) 21.41 Restricted shares forfeited (241) 30.68 Restricted shares repurchased (8,474) 24.36 Non-vested restricted shares, December 31 808,186 $ 28.18  71