Earnings Per Common Share (Notes)

12 Months Ended

Dec. 31, 2011

Earnings Per Share [Abstract]

Earnings Per Common Share [Text Block]

9. EARNINGS PER COMMON SHARE

Basic earnings per share ("EPS") is calculated by dividing net income by the weighted average number of common shares outstanding during the year. Diluted EPS is calculated by dividing net income by the weighted average number of common shares outstanding adjusted to include the potentially dilutive effect of outstanding stock options, performance shares, restricted shares and convertible debt.

On July 22, 2011, the Board of Directors authorized a three-for-two stock split in the form of a stock dividend. The additional shares were distributed on August 24, 2011 to shareholders of record on August 10, 2011. The impact of the stock split is reflected for all periods presented.

The following table provides details of the calculation of basic and diluted EPS for the three years ended December 31:

	2011		2010		2009
Net income	$	276,005	$	217,586	$	312,541
Shares used for determining basic earnings per common share	121,662,985		120,240,275		118,578,719
Dilutive effect of:
Stock options	702,693		593,768		549,147
Performance and restricted shares	982,951		1,034,319		902,585
Assumed conversion of Senior Exchangeable Notes (a)	1,895,762		—		—
Assumed conversion of warrants (a)	149,900		—		—
Shares used for determining diluted earnings per common share	125,394,291		121,868,362		120,030,451
Basic earnings per common share	$	2.27	$	1.81	$	2.63
Diluted earnings per common share	$	2.20	$	1.79	$	2.60

	2011	2010	2009
Anti-dilutive shares excluded from the computations of diluted earnings per share:
Stock options, performance and restricted shares	161,786	308,421	1,449,029
Assumed conversion of exchangeable note hedges (a)	1,895,762	—	—
Total	2,057,548	308,421	1,449,029

(a) Upon maturity of the Senior Exchangeable Notes (the "Notes"), Rayonier will not issue additional shares for the Notes due to the offsetting exchangeable note hedges (the "hedges"). However, Accounting Standards Codification 260, Earnings Per Share requires the assumed conversion of the Notes to be included in dilutive shares if the average stock price for the period exceeds the strike prices, while the assumed conversion of the hedges are excluded since they are anti-dilutive. Rayonier will distribute additional shares upon maturity of the warrants if the stock price exceeds the strike price. For additional information on the potential dilutive impact of the Senior Exchangeable Notes, warrants and exchangeable note hedges, see Note 11 —Debt.