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Other Income (Expense)
 12 Months Ended
Dec. 31, 2015
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, 2015:
 
 
2015
 
2014
 
2013
Investment income, net
 
 
 
 
 
 
Net investment income from available-for-sale securities
 
 
 
 
 
 
Interest and dividend income
 
$
5,900

 
$
6,258

 
$
1,171

Accretion income
 
2,566

 
1,455

 
—

Realized gains (losses) on the sale of investments
 
5,311

 
(833
)
 
93

Other-than-temporary impairment losses
 
—

 
(1,295
)
 
—

Total net investment income from available-for-sale securities
 
13,777

 
5,585

 
1,264

Interest income from investments in special purpose entities
 
8,217

 
6,116

 
—

Interest accrued on notes receivable and other interest
 
694

 
990

 
234

Total investment income, net
 
22,688

 
12,691

 
1,498

Interest expense
 
 
 
 
 
 
Interest expense and amortization of discount and issuance costs for Senior Notes issued by special purpose entity
 
(8,755
)
 
(6,584
)
 
—

Interest expense
 
(2,674
)
 
(2,024
)
 
(2,040
)
Total interest expense
 
(11,429
)
 
(8,608
)
 
(2,040
)
Other, net
 
 
 
 
 
 
Fees and expenses for the SEC investigation
 
(8,161
)
 
—

 
—

Accretion income from retained interest investments
 
913

 
889

 
793

Hunting lease income
 
738

 
938

 
1,850

Litigation and insurance proceeds received
 
—

 
1,814

 
560

Other income, net
 
223

 
847

 
1,007

Other, net
 
(6,287
)
 
4,488

 
4,210

Total other income
 
$
4,972

 
$
8,571

 
$
3,668


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 accretion of 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 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 and Refinanced Loan in the Pier Park North joint venture. Borrowing costs, including the discount and issuance costs for 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
During 2015, the Company expensed a total of $8.2 million related to the recently resolved SEC investigation. This amount was included in Other, net in the Consolidated Statements of Operations. The $8.2 million of fees and expenses for the SEC investigation consisted of (i) $3.5 million for penalties, disgorgements and interest relating to the SEC investigation and (ii) $4.7 million of 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 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 $4.7 million in legal costs during 2015. See Note 21, Commitments and Contingencies.

Litigation and insurance proceeds include the cash receipt of $1.8 million as a settlement for a real estate easement litigation during 2014 and the cash receipt of $0.6 million for insurance proceeds during 2013, as compared to no recoveries in 2015. As of December 31, 2015, the Company did not possess necessary data to determine any insurance or litigation receivables.
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 11.7%. Hunting lease income is recognized as income over the term of the lease.