20. Other Income (Expense)

Other income (expense) consists of the following:



	Year Ended December 31,
	2018		2017		2016
Investment income, net
Interest and dividend income	$	9,060	$	16,380	$	6,602
Accretion income		684		1,983		1,829
Net realized (loss) gain on the sale of investments		(973)		10,750		795
Other-than-temporary impairment loss		(2,330)		(2,288)		—
Unrealized loss on investments, net		(3,035)		—		—
Interest income from investments in SPEs		8,197		8,201		8,202
Interest accrued on notes receivable and other interest		547		384		348
Total investment income, net		12,150		35,410		17,776
Interest expense
Interest expense and amortization of discount and issuance costs for Senior Notes issued by SPE		(8,788)		(8,777)		(8,833)
Other interest expense		(3,052)		(3,368)		(3,462)
Total interest expense		(11,840)		(12,145)		(12,295)
Claim settlement		—		—		12,548
Sale of vacation rental management, net		—		9,800		—
Other income, net
Accretion income from retained interest investments		1,232		1,100		991
Insurance proceeds		7,199		—		—
Hurricane expense		(8,628)		—		—
Miscellaneous income, net		1,349		3,613		513
Other income, net		1,152		4,713		1,504
Total other income, net	$	1,462	$	37,778	$	19,533

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 investment in preferred stock. 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 (loss) gain on the sale of investments include the gains or losses recognized on the sale of an available-for-sale securities prior to maturity. Other-than-temporary impairment loss includes impairments related to the Company’s corporate debt securities for the year ended December 31, 2018 and impairments related to the Company’s corporate debt securities and preferred stock investments for the year ended December 31, 2017.

Unrealized loss 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 earned 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 North JV Loan, Pier Park Outparcel Construction Loan and WaterColor Crossings 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 8. Sale of Vacation Rental Management for further discussion.

Other Income, Net

Other income, net primarily includes income from the Company’s retained interest investments, insurance proceeds, hurricane expenses and other income and expense items.

Insurance proceeds during the year ended December 31, 2018, includes $7.2 million of hurricane insurance proceeds that the Company believes are probable of receipt. Hurricane expenses during the year ended December 31, 2018, includes a $7.3 million loss on disposal of assets related to damage from Hurricane Michael and $1.3 million of additional hurricane expenses. See Note 7. Hurricane Michael for additional information. Miscellaneous income, net primarily consists of $2.2 million of income related to the final distribution from the Company’s unconsolidated JV ALP, offset by $0.6 million for a homeowners’ association settlement related to one of the Company’s residential communities. During 2017, the Company negotiated an insurance settlement that resulted in proceeds of $3.5 million, included within miscellaneous income, net, for reimbursement of certain attorney fees and related costs incurred by the Company.

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 12.0%.