XML 33 R22.htm IDEA: XBRL DOCUMENT v3.7.0.1
Other Income (Expense)
 3 Months Ended
Mar. 31, 2017
Other Income and Expenses [Abstract]  
Other Income (Expense)
Other Income (Expense)
Other income (expense) consists of the following:
 
Three Months Ended 
 March 31,
 
2017
 
2016
Investment income, net
 
 
 
Net investment income from available-for-sale securities
 
 
 
Interest and dividend income
$
4,548

 
$
189

Accretion income
922

 
464

Realized gain on the sale of investments
3,122

 
—

Other-than-temporary impairment loss
(366
)
 
—

Total net investment income from available-for-sale securities
8,226

 
653

Interest income from investments in SPEs
2,051

 
2,050

Interest accrued on notes receivable and other interest
79

 
27

Total investment income, net
10,356

 
2,730

Interest expense
 
 
 
Interest expense and amortization of discount and issuance costs for Senior Notes issued by SPE
(2,193
)
 
(2,190
)
Interest expense
(850
)
 
(845
)
Total interest expense
(3,043
)
 
(3,035
)
Claim settlement
—

 
12,548

Other, net
 
 
 
Accretion income from retained interest investments
263

 
241

Hunting lease income
139

 
138

Miscellaneous income, net
3,649

 
73

Other, net
4,051

 
452

 
 
 
 
Total other income, net
$
11,364


$
12,695

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 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 gain on the sale of investments include the gain recognized on the sale of an available-for-sale security prior to maturity. During the three months ended March 31, 2017, the Company determined that a portion of its investments in corporate debt securities and preferred stock were other-than-temporarily impaired and recorded a $0.4 million impairment related to credit-related loss in investment income, net on the Company's condensed consolidated statements of income. See Note 4. Investments.
Interest income from investments in SPEs primarily includes interest accrued or received on the investments held by PCTFC, which is used to pay the interest expense for Senior Notes held by NFTF.
Interest Expense
Interest expense includes interest expense related to the Company’s CDD debt and Refinanced Loan in the Pier Park North JV. Borrowing costs, including the discount and issuance costs for the Senior Notes issued by NFTF, are amortized based on the effective interest method at an effective rate of 4.9%.
Claim Settlement
Claim settlement during the three months ended March 31, 2016 includes $12.5 million for a settlement related to the Deepwater Horizon oil spill. See Note 6. Claim Settlement Receivable for further discussion.
Other, Net
During the three months ended March 31, 2017, the Company negotiated an insurance settlement that resulted in proceeds of $3.5 million, for reimbursement of certain attorney fees and related costs incurred by the Company in defending shareholder litigation and the SEC investigation which was resolved in October 2015. This amount was included in other, net in the condensed consolidated statements of income.
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 each lease.