Other Income (Expense)

Other income (expense) consists of the following during the three years ended December 31, 2017:



	2017			2016			2015
Investment income, net
Net investment income from available-for-sale securities
Interest and dividend income	$	16,380		$	6,602		$	6,940
Accretion income	1,983			1,829			1,526
Net realized gain on the sale of investments	10,750			795			5,311
Other-than-temporary impairment loss	(2,288		)	—			—
Total net investment income from available-for-sale securities	26,825			9,226			13,777
Interest income from investments in SPEs	8,201			8,202			8,217
Interest accrued on notes receivable and other interest	384			348			694
Total investment income, net	35,410			17,776			22,688
Interest expense
Interest expense and amortization of discount and issuance costs for Senior Notes issued by SPE	(8,777		)	(8,833		)	(8,755		)
Other interest expense	(3,368		)	(3,462		)	(2,674		)
Total interest expense	(12,145		)	(12,295		)	(11,429		)
Claim settlement	—			12,548			—
Sale of vacation rental management, net	9,800			—			—
Other income (expense), net
Accretion income from retained interest investments	1,100			991			913
Hunting lease income	569			553			562
Miscellaneous income (expense), net	4,286			1,078			(7,762		)
Other income (expense), net	5,955			2,622			(6,287		)
Total other income, net	$	39,020		$	20,651		$	4,972

Investment Income, Net

Interest and dividend income includes interest income accrued or received on the Company’s corporate debt securities, commercial paper and money market funds, 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. Net realized gain on the sale of investments include the gain or loss recognized on the sale of an available-for-sale security prior to maturity. During the year ended December 31, 2017, the Company determined that a portion of its investments in corporate debt securities and preferred stock were other-than-temporary impaired and recorded a $2.3 million impairment related to credit-related loss in investment income, net on the Company's consolidated statements of operations. 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 year ended December 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.

Sale of Vacation Rental Management, Net

Sale of vacation rental management, net includes proceeds of $9.9 million, which resulted in a gain of $9.8 million from the PCR Rentals sale in December 2017. See Note 7. Sale of Vacation Rental Management for further discussion.

Other Income (Expense), Net

Other income (expense), net primarily includes insurance settlement proceeds and fees and expenses related to a resolved SEC investigation, income from the Company’s retained interest investments, hunting lease income and other income and expense items.

During 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. 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 the SEC investigation. These amounts were included within miscellaneous income (expense), net.

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.