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Other Income (Expense)
 12 Months Ended
Dec. 31, 2014
Other Income and Expenses [Abstract]  
Other Income (Expense)
Other Income (Expense)
Other income (expense) consists of the following during the three years ended December 31, 2014:
 
 
2014
 
2013
 
2012
Investment income, net
 
 
 
 
 
 
Net investment income from available-for-sale securities (Note 6)
 
 
 
 
 
 
Interest and dividend income
 
$
6,258

 
$
1,171

 
$
—

Accretion income
 
1,455

 
—

 
—

Realized (losses) gains on the sale of investments
 
(833
)
 
93

 
—

Other-than-temporary impairment losses
 
(1,295
)
 
—

 
—

Total net investment income from available-for-sale securities
 
5,585

 
1,264

 
—

Interest income from investments in special purpose entities (Note 5)
 
6,116

 
—

 
—

Interest accrued on notes receivable (Note 10)
 
990

 
234

 
707

Total investment income, net
 
12,691

 
1,498

 
707

Interest expense
 
 
 
 
 
 
Interest expense and amortization of discount and issuance costs for Senior Notes issued by special purpose entity (Note 5)
 
(6,584
)
 
—

 
—

Interest expense (Note 13)
 
(2,024
)
 
(2,040
)
 
(2,820
)
Total interest expense
 
(8,608
)
 
(2,040
)
 
(2,820
)
Other, net
 
 
 
 
 
 
Accretion income from retained interest investments (Note 9)
 
889

 
793

 
(570
)
Hunting lease income
 
938

 
1,850

 
2,193

Litigation and insurance proceeds received
 
1,814

 
560

 
1,671

Southwest guarantee
 
—

 
—

 
832

Other income, net
 
847

 
1,007

 
2,276

Other, net
 
4,488

 
4,210

 
6,402

Total other income
 
$
8,571

 
$
3,668

 
$
4,289


Investment income, net

Interest and dividend income includes interest income accrued on the Company’s corporate debt securities and dividend income received from the Company’s preferred stock investments. Accretion income includes the amortization of the premium or discount related to the Company’s available-for-sale securities, which is amortized based on an effective interest rate method over the term of the available for sale security. Realized (losses) gains on the sale of investments includes the gain or loss recognized on the sale of an available for sale security prior to maturity. Other-than-temporary impairment losses include the credit-related losses on the Company’s corporate debt securities. See Note 6, Investments.
    
Interest income from investments in special purpose entities primarily includes interest accrued on the Timber Note, which is used to pay the interest expense for the Senior Notes issued by special purpose entity. See Note 5, Real Estate Sales.

Interest expense

Interest expense includes interest expense related to the Company’s Community Development District debt and the construction loan in the Pier Park North joint venture. Borrowing costs, including the discount and issuance costs for the Senior Notes issued by the Senior Notes issued by special purpose entity, are amortized based on the effective interest method at an effective rate of 4.9%.
Other, net

The Company records the accretion of investment income from its retained interest investment over the life of the retained interest using the effective yield method with rates ranging from 3.7% - 11.8%. Hunting lease income is recognized as income over the term of the lease. Litigation and insurance proceeds include the cash receipt of $1.8 million as a settlement for a real estate easement litigation during 2014, the cash receipt of $0.6 million for insurance proceeds during 2013 and the cash receipt of $1.7 million for the DeepWater Horizon claim during 2012.

In addition, during 2014, the Company sold all its ownership interest in ESM to its joint venture partner in exchange for a $3.0 million promissory note that was due and paid before December 31, 2014. The Company recorded a net gain of $0.6 million in Other, net. See Note 9, Real Estate Joint Ventures.