NNN 2003 VALUE FUND LLC

CIK:0001260429|SEC Filings

Discontinued Operations

9 Months Ended

Sep. 30, 2012

8. Discontinued Operations

In accordance with FASB Codification Topic 360, Property, Plant and Equipment, the net income (loss) from consolidated properties sold are reflected in our consolidated statements of operations as discontinued operations for all periods presented. For the three and nine months ended September 30, 2011, discontinued operations includes the net income (loss) of the following properties:


Property	Date Sold
Four Resource Square		January 20, 2011
Sevens Building		March 25, 2011

The following table summarizes the revenue and expense components that comprised income (loss) from discontinued operations for the three and nine months ended September 30, 2011:


	Three Months Ended			Nine Months Ended
	September 30, 2011			September 30, 2011
Rental revenue	$	—		$	964,000
Rental expense (including general, administrative, depreciation and amortization)		—			(727,000	)
Interest expense		—			(545,000	)
(Loss) gain on extinguishment of debt		(11,000	)		13,623,000

(Loss) income from discontinued operations		(11,000	)		13,315,000
(Loss) income from discontinued operations attributable to non-controlling interests		—			—

(Loss) income from discontinued operations attributable to NNN 2003 Value Fund, LLC	$	(11,000	)	$	13,315,000

Condensed Consolidated Statement of Cash Flows (Going Concern Basis) (Unaudited) (USD $)	9 Months Ended
	Sep. 30, 2011
CASH FLOWS FROM OPERATING ACTIVITIES:
Consolidated net income	$ 13,086,000
Adjustments to reconcile net income to net cash used in operating activities:
Gain on extinguishment of debt	(13,623,000)
Depreciation and amortization (including deferred financing costs, deferred rent, lease inducements and above/below market leases)	157,000
Equity in earnings of unconsolidated real estate	(1,000)
Allowance for doubtful accounts	44,000
Change in operating assets and liabilities:
Accounts receivable, including accounts and loans receivable due from related parties	(138,000)
Other assets	38,000
Restricted cash	(21,000)
Accounts payable and accrued liabilities, including accounts payable to related parties	(275,000)
Security deposits, prepaid rent and other liabilities	(181,000)
Net cash used in operating activities	(914,000)
CASH FLOWS FROM INVESTING ACTIVITIES:
Distributions from unconsolidated real estate	25,000
Net cash provided by investing activities	25,000
CASH FLOWS FROM FINANCING ACTIVITIES:
Distributions to unit holders	(500,000)
Cash transferred to lender in connection with transfer of property	(49,000)
Net cash used in financing activities	(549,000)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(1,438,000)
CASH AND CASH EQUIVALENTS - beginning of period	2,031,000
CASH AND CASH EQUIVALENTS - end of period	593,000
NONCASH INVESTING AND FINANCING ACTIVITIES:
Transfer of real estate and other assets and liabilities in connection with debt extinguishment	29,799,000
Cancellation of debt and accrued interest in connection with transfer of real estate and other assets and liabilities	$ 43,471,000

Consolidated Statements of Net Assets in Liquidation (Liquidation Basis) (USD $)	Sep. 30, 2012	Dec. 31, 2011
ASSETS
Cash and cash equivalents	$ 82,000	$ 603,000
Total assets	82,000	603,000
LIABILITIES
Accounts payable and accrued liabilities	17,000	22,000
Reserve for estimated costs in excess of receipts during liquidation	65,000	197,000
Total liabilities	82,000	219,000
Net assets in liquidation	$ 0	$ 384,000