Claim Settlement Receivable

9 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Claim Settlement Receivable

Notes Receivable, Net

Notes receivable, net consists of the following:

	September 30, 2016		December 31, 2015
Pier Park Community Development District notes, non-interest bearing, due September 2022, net of unamortized discount of $0.1 million, effective rates 5.93% — 6.50%	$	1,792	$	1,985
Interest bearing homebuilder notes, secured by the real estate sold — 4.0% interest rate, any remaining payments outstanding are due December 2016	33		90
Various mortgage notes, secured by certain real estate, bearing interest at various rates	216		480
Total notes receivable, net	$	2,041	$	2,555

The Company evaluates the carrying value of the notes receivable and the need for an allowance for doubtful notes receivable at each reporting date.

Claim Settlement Receivable

On March 24, 2016, the Company entered into a full and final release agreement with BP p.l.c. and various related entities pursuant to which the Company, on its own behalf and on behalf of certain wholly owned subsidiaries, released any and all claims related to the Deepwater Horizon oil spill which occurred on April 20, 2010.  In exchange for this release, the Company will receive the amount of $13.2 million from BP Exploration & Production Inc., a large portion of which will reimburse the Company for expenses incurred.  Payment of the settlement amount is to be made pursuant to the following schedule: the amount of $5.0 million due in October of 2016 followed by payments of $2.7 million due in October of 2017, 2018 and 2019. On October 3, 2016, the Company received the $5.0 million payment.  The Company also received a guaranty of payments from BP North America Corporation Inc. As of March 24, 2016, the Company recorded the claim settlement receivable using an imputed interest rate of 3.0%, based on its best estimate of the prevailing market rates for the source of credit, resulting in an initial present value of $12.5 million and a discount of $0.7 million. $12.5 million of the claim settlement was recognized as other income in the Company’s condensed consolidated statements of income for the nine months ended September 30, 2016. The discount is being accreted over the term of the receivable using the effective interest method. Interest income for the three months ended September 30, 2016 and the period from March 24, 2016 to September 30, 2016 was $0.1 million and $0.2 million, respectively.