NNN recorded the following in interest expense relating to the 2028 Notes and the 2026 Notes as of 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  were settled at par plus accrued interest. The holders of the remaining $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 was based on  the average daily closing price of NNN's common stock price over a period of 20 days commencing after receipt of a note  holder's conversion notice. In 2013, the Company issued 2,407,911 shares of common stock and paid approximately  $226,427,000 in aggregate settlement value for the $223,035,000 principal amount of 2028 Notes. The difference between the  amount paid and the principal amount of the settled 2028 Notes of $3,197,000 was recognized as a decrease to additional paid- in capital and $195,000 was recorded as interest expense. 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  34