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Other Income (Expense)
 12 Months Ended
Dec. 31, 2016
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, 2016:
 
 
2016
 
2015
 
2014
Investment income, net
 
 
 
 
 
 
Net investment income from available-for-sale securities
 
 
 
 
 
 
Interest and dividend income
 
$
6,602

 
$
6,940

 
$
6,258

Accretion income
 
1,829

 
1,526

 
1,455

Realized gains (losses) on the sale of investments
 
795

 
5,311

 
(833
)
Other-than-temporary impairment losses
 
—

 
—

 
(1,295
)
Total net investment income from available-for-sale securities
 
9,226

 
13,777

 
5,585

Interest income from investments in SPEs
 
8,202

 
8,217

 
6,116

Interest accrued on notes receivable and other interest
 
348

 
694

 
990

Total investment income, net
 
17,776

 
22,688

 
12,691

Interest expense
 
 
 
 
 
 
Interest expense and amortization of discount and issuance costs for Senior Notes issued by SPE
 
(8,833
)
 
(8,755
)
 
(6,584
)
Interest expense
 
(3,462
)
 
(2,674
)
 
(2,024
)
Total interest expense
 
(12,295
)
 
(11,429
)
 
(8,608
)
Claim settlement
 
12,548

 
—

 
—

Other income (expense), net
 
 
 
 
 
 
SEC investigation fees and expenses
 
742

 
(8,161
)
 
—

Accretion income from retained interest investments
 
991

 
913

 
889

Hunting lease income
 
553

 
562

 
764

Litigation and insurance proceeds received
 
—

 
—

 
1,814

Other income, net
 
336

 
399

 
1,021

Other income (expense), net
 
2,622

 
(6,287
)
 
4,488

Total other income, net
 
$
20,651

 
$
4,972

 
$
8,571


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 and other 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 securities. 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. Other-than-temporary impairment losses include the credit-related losses on the Company’s corporate debt securities. See Note 5. Investments.
Interest income from investments in SPEs primarily includes interest accrued on the Timber Note, which is used to pay the interest expense for the Senior Notes issued by NFTF. See Note 4. Real Estate Sales.
Interest expense
Interest expense includes interest expense related to the Company’s CDD debt and the construction loan and Refinanced Loan in the Pier Park North JV. Borrowing costs, including the discount and issuance costs for the Senior Notes issued by the SPE, are amortized based on the effective interest method at an effective rate of 4.9%.
Claim settlement
Claim settlement during the year ended December 31, 2016 includes $12.5 million for a settlement related to the Deepwater Horizon oil spill. See Note 7. Claim Settlement Receivable for further discussion.
Other income (expense), net
During 2016, the Company negotiated a settlement of SEC investigation expenses that resulted in the reversal of an accrual of $0.7 million. During 2015, the Company expensed a total of $8.2 million, related to an SEC investigation, which was resolved in October 2015.
Litigation and insurance proceeds include the cash receipt of $1.8 million as a settlement for a real estate easement litigation during 2014, as compared to no material recoveries in 2016 and 2015.
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 11.8%. Hunting lease income is recognized as income over the term of the lease.