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Other Income (Expense)
 9 Months Ended
Sep. 30, 2017
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,
 
 
2017
 
2016
 
2017
 
2016
Investment income, net
 
 
 
 
 
 
 
 
Net investment income from available-for-sale securities
 
 
 
 
 
 
 
 
Interest and dividend income
 
$
4,445

 
$
1,528

 
$
13,016

 
$
1,969

Accretion income
 
375

 
960

 
1,696

 
2,002

Realized (loss) gain on the sale of investments
 
(104
)
 
40

 
10,757

 
40

Other-than-temporary impairment loss
 
(403
)
 
—

 
(769
)
 
—

Total net investment income from available-for-sale securities
 
4,313

 
2,528

 
24,700

 
4,011

Interest income from investments in SPEs
 
2,050

 
2,051

 
6,151

 
6,151

Interest accrued on notes receivable and other interest
 
89

 
110

 
259

 
216

Total investment income, net
 
6,452

 
4,689

 
31,110

 
10,378

Interest expense
 
 
 
 
 
 
 
 
Interest expense and amortization of discount and issuance costs for Senior Notes issued by SPE
 
(2,195
)
 
(2,259
)
 
(6,582
)
 
(6,640
)
Other interest expense
 
(843
)
 
(816
)
 
(2,535
)
 
(2,615
)
Total interest expense
 
(3,038
)
 
(3,075
)
 
(9,117
)
 
(9,255
)
Claim settlement
 
—

 
—

 
—

 
12,548

Other income, net
 
 
 
 
 
 
 
 
Accretion income from retained interest investments
 
279

 
249

 
813

 
733

Hunting lease income
 
145

 
138

 
424

 
415

Miscellaneous income, net
 
493

 
48

 
4,323

 
339

Other income, net
 
917

 
435

 
5,560

 
1,487

 
 
 
 
 
 
 
 
 
Total other income, net
 
$
4,331

 
$
2,049


$
27,553


$
15,158

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 (loss) gain on the sale of investments include the loss or gain recognized on the sale of an available-for-sale security prior to maturity. During the three months ended September 30, 2017, the Company determined that a portion of its investments in corporate debt securities 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. During the nine months ended September 30, 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 $0.8 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 Panama City Timber Finance Company, LLC, which is used to pay the interest expense for Senior Notes held by Northwest Florida Timber Finance, LLC.
Interest Expense
Interest expense includes interest expense related to the Company’s CDD debt, Refinanced Loan in the Pier Park North JV and Construction Loan. Borrowing costs, including the discount and issuance costs for the Senior Notes issued by Northwest Florida Timber Finance, LLC, are amortized based on the effective interest method at an effective rate of 4.9%.
Claim Settlement
Claim settlement during the nine months ended September 30, 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 Income, Net
Other income, net primarily includes income from the Company’s retained interest investments, hunting lease income, insurance settlement proceeds and other income and expense items. During the nine months ended September 30, 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 income, 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 11.7%. Hunting lease income is recognized as income over the term of each lease.