16. Other Income (Expense)

Other income (expense) consists of the following:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2018		2017		2018		2017
Investment income, net
Interest and dividend income	$	1,802	$	4,445	$	7,025	$	13,016
Accretion income		218		375		641		1,696
Net realized gain (loss) on the sale of investments		125		(104)		(961)		10,757
Other-than-temporary impairment loss		(1,660)		(403)		(1,723)		(769)
Unrealized (loss) gain on investments, net		(89)		—		641		—
Interest income from investments in SPEs		2,049		2,050		6,148		6,151
Interest accrued on notes receivable and other interest		130		89		450		259
Total investment income, net		2,575		6,452		12,221		31,110
Interest expense
Interest expense and amortization of discount and issuance costs for Senior Notes issued by SPE		(2,197)		(2,195)		(6,590)		(6,582)
Other interest expense		(729)		(843)		(2,315)		(2,535)
Total interest expense		(2,926)		(3,038)		(8,905)		(9,117)
Other income (expense), net
Accretion income from retained interest investments		316		279		909		813
Miscellaneous (expense) income, net		(48)		304		(122)		3,833
Other income, net		268		583		787		4,646
Total other (expense) income, net	$	(83)	$	3,997	$	4,103	$	26,639

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 (loss) on the sale of investments include the gains or losses recognized on the sale of available-for-sale securities prior to maturity. Other-than-temporary impairment loss includes impairments related to the Company’s corporate debt securities for the three and nine months ended September 30, 2018 and impairments related to the Company’s corporate debt securities and preferred stock for the three and nine months ended September 30, 2017.

Unrealized (loss) gain on investments, net includes unrealized gains or losses on investments - equity securities due to the adoption of ASU 2016‑01. Prior to 2018, unrealized gains or losses related to these investments were recorded in accumulated other comprehensive loss.

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, PPN JV Loan and Pier Park Outparcel 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%.

Other Income, Net

Other income, net primarily includes income from the Company’s retained interest investments, 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. 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 12.2%.