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Other Income (Expense)
 9 Months Ended
Sep. 30, 2015
Other Income and Expenses [Abstract]  
Other Income (Expense)
Other Income (Expense)
Other income (expense) consists of the following:
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2015
 
2014
 
2015
 
2014
Investment income, net
 
 
 
 
 
 
 
 
Net investment income from available-for-sale securities
 
 
 
 
 
 
 
 
Interest and dividend income
 
$
1,120

 
$
1,859

 
$
5,509

 
$
3,987

Accretion income
 
639

 
440

 
2,184

 
961

Realized gains (losses) on the sale of investments
 
5,276

 
—

 
5,276

 
(833
)
Other-than-temporary impairment losses
 
—

 
(1,295
)
 
—

 
(1,295
)
Total net investment income from available-for-sale securities
 
7,035

 
1,004


12,969

 
2,820

Interest income from investments in special purpose entities (Note 5)
 
2,050

 
2,050

 
6,150

 
4,067

Interest accrued on notes receivable and other interest
 
40

 
313

 
657

 
705

Total investment income, net
 
9,125

 
3,367


19,776

 
7,592

Interest expense
 
 
 
 
 
 
 
 
Interest expense and amortization of discount and issuance costs for Senior Notes issued by special purpose entity (Note 5)
 
(2,189
)
 
(2,185
)
 
(6,566
)
 
(4,397
)
Interest expense
 
(686
)
 
(765
)
 
(1,831
)
 
(1,442
)
Total interest expense
 
(2,875
)
 
(2,950
)

(8,397
)

(5,839
)
Other, net
 
 
 
 
 
 
 
 
Fees and expenses for the SEC investigation
 
(438
)
 
—

 
(7,869
)
 
—

Accretion income from retained interest investments
 
237

 
226

 
674

 
656

Hunting lease income
 
172

 
138

 
551

 
623

Other income, net
 
164

 
23

 
342

 
455

Other, net
 
135

 
387


(6,302
)

1,734

 
 
 
 
 
 
 
 
 
Total other income
 
$
6,385

 
$
804


$
5,077


$
3,487

Investment income, net
Interest and dividend income includes interest income accrued or received 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 gains (losses) on the sale of investments include the gain or loss recognized on the sale of an available-for-sale security prior to maturity. During the third quarter of 2014, the Company determined that its investments in corporate debt securities were other-than-temporarily impaired and recorded $1.3 million related to credit-related losses in Investment income, net on the Company's Condensed Consolidated Statements of Operations. See Note 4, Investments.
    Interest income from investments in special purpose entities primarily includes interest accrued or received 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 special purpose entity, are amortized based on the effective interest method at an effective rate of 4.9%.
Other, net
During the three and nine months ended September 30, 2015, the Company expensed a total of $0.5 million and $7.9 million, respectively, related to the SEC investigation. This amount was included in Other, net in the Condensed Consolidated Financial Statements. The $7.9 million of fees and expenses for the SEC investigation consisted of (i) an accrual of $3.5 million for penalties, disgorgements and interest relating to the SEC investigation and (ii) legal expenses associated with the SEC investigation. On October 27, 2015, the Company fully resolved the SEC investigation and entered into a settlement with the SEC. Without admitting or denying any factual allegations, the Company consented to the SEC’s issuance of an administrative order pursuant to which the Company agreed to pay penalties, disgorgements and interest of approximately $3.5 million, including a civil penalty assessed on the Company of $2.75 million and other disgorgements and interest subject to indemnification by the Company. During the nine months ended September 30, 2015, the Company received correspondence from an insurance carrier related to non-coverage of certain fees and expenses incurred in the SEC investigation and, as a result of this correspondence, the Company recorded $0.5 million and $4.4 million, respectively, in legal costs during the three and nine months ended September 30, 2015. See Note 18, Commitments and Contingencies.
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% to 11.6%. Hunting lease income is recognized as income over the term of the lease.