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Other (Expense) Income
 6 Months Ended
Jun. 30, 2015
Other Income and Expenses [Abstract]  
Other (Expense) Income
Other (Expense) Income
Other (expense) income consists of the following:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2015
 
2014
 
2015
 
2014
Investment income, net
 
 
 
 
 
 
 
 
Net investment income from available-for-sale securities
 
 
 
 
 
 
 
 
Interest and dividend income
 
$
2,130

 
$
1,603

 
$
4,389

 
$
2,126

Accretion income
 
640

 
409

 
1,262

 
521

Realized losses on the sale of investments
 
—

 
(432
)
 
—

 
(833
)
Total net investment income from available-for-sale securities
 
2,770

 
1,580


5,651

 
1,814

Interest income from investments in special purpose entities (Note 5)
 
2,003

 
2,018

 
4,005

 
2,018

Interest accrued on notes receivable
 
665

 
353

 
995

 
392

Total investment income, net
 
5,438

 
3,951


10,651

 
4,224

Interest expense
 
 
 
 
 
 
 
 
Interest expense and amortization of discount and issuance costs for Senior Notes issued by special purpose entity (Note 5)
 
(2,189
)
 
(2,071
)
 
(4,377
)
 
(2,071
)
Interest expense
 
(456
)
 
(178
)
 
(1,145
)
 
(818
)
Total interest expense
 
(2,645
)
 
(2,249
)

(5,522
)

(2,889
)
Other, net
 
 
 
 
 
 
 
 
Costs for the ongoing SEC investigation
 
(7,430
)
 
—

 
(7,430
)
 
—

Accretion income from retained interest investments
 
227

 
219

 
438

 
430

Hunting lease income
 
169

 
196

 
378

 
576

Other income, net
 
21

 
155

 
178

 
341

Other, net
 
(7,013
)
 
570


(6,436
)

1,347

 
 
 
 
 
 
 
 
 
Total other (expense) income
 
$
(4,220
)
 
$
2,272


$
(1,307
)

$
2,682

Investment income, net

Interest and dividend income includes interest income accrued on the Company’s corporate debt securities and dividend income received from the Company’s preferred stock investments. Accretion income includes the amortization of the premium or 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 security. Realized losses on the sale of investments include the loss recognized on the sale of an available-for-sale security prior to maturity. See Note 4, Investments.
    
Interest income from investments in special purpose entities primarily includes interest accrued on the Timber Note, which is used to pay the interest expense for the Senior Notes issued by special purpose entity. See Note 5, Real Estate Sales.

Interest expense

Interest expense includes interest expense related to the Company’s Community Development District debt and the construction loan in the Pier Park North joint venture. Borrowing costs, including the discount and issuance costs for the Senior Notes issued by the Senior Notes issued by special purpose entity, are amortized based on the effective interest method at an effective rate of 4.9%.
Other, net

During the three and six months ended June 30, 2015, the Company expensed a total of $7.4 million related to the ongoing SEC investigation. The Company established a reserve of $3.5 million related to the potential for settlement of the ongoing SEC investigation that was expensed in Other, net in the Condensed Consolidated Financial Statements during the three and six months ended June 30, 2015. In addition, during the three months ended June 30, 2015, the Company received correspondence from an insurance carrier related to coverage of certain expenses incurred in the SEC investigation and, as a result of this correspondence, the Company recorded $3.9 million in legal costs during the three and six months ended June 30, 2015. See Note 17, Commitments and Contingencies.
 
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% - 11.6%. Hunting lease income is recognized as income over the term of the lease.