Employee Benefit Plans (Notes)

12 Months Ended

Dec. 31, 2011

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Employee Benefit Plans [Text Block]

20. EMPLOYEE BENEFIT PLANS

The Company has four qualified non-contributory defined benefit pension plans covering a significant majority of its employees and an unfunded plan that provides benefits in excess of amounts allowable under current tax law in the qualified plans. The Company closed enrollment in its pension plans to salaried employees hired after December 31, 2005, to Fernandina hourly employees hired after April 30, 2006, to Jesup hourly employees hired after March 4, 2009 and to Wood Products hourly employees hired after February 28, 2011. Currently, all plans are closed to new participants. Employee benefit plan liabilities are calculated using actuarial estimates and management assumptions. These estimates are based on historical information, along with certain assumptions about future events. Changes in assumptions, as well as changes in actual experience, could cause the estimates to change.

In September 2008, the Company changed its postretirement medical plan for active and retired salaried employees to shift retiree medical costs to the plan participants over a three year phase-out period. Accordingly, at the beginning of 2012, the Company’s intent is to no longer incur retiree medical costs for retired salary plan participants. The change was accounted for as a negative plan amendment and curtailment which resulted in a reduction to the retiree medical liability. The net impact of the reduction was an unrecognized gain in accumulated other comprehensive income of $7.7 million which was amortized over 1.9 years, the average remaining service period of the remaining active participants. As a result of the plan change, a gain of $2.4 million and $4.0 million was included in the Company’s net periodic benefit cost in 2010 and 2009, respectively.

The following tables set forth the change in the projected benefit obligation and plan assets and reconcile the funded status and the amounts recognized in the Consolidated Balance Sheets for the pension and postretirement benefit plans for the two years ended December 31:

	Pension						Postretirement
	2011			2010			2011			2010
Change in Projected Benefit Obligation
Projected benefit obligation at beginning of year	$	346,464		$	324,554		$	21,158		$	21,361
Service cost	6,782			6,196			673			587
Interest cost	18,087			17,740			972			1,029
Actuarial loss	58,208			11,766			3,934			965
Plan amendments	—			1,704			(631		)	—
Employee contributions	—			—			1,609			1,042
Benefits paid	(16,394		)	(15,496		)	(2,882		)	(3,826		)
Projected benefit obligation at end of year	$	413,147		$	346,464		$	24,833		$	21,158

Change in Plan Assets
Fair value of plan assets at beginning of year	$	302,464		$	231,686		$	—		$	—
Actual return on plan assets	8,977			35,636			—			—
Employer contributions	1,552			51,510			1,273			2,784
Employee contributions	—			—			1,609			1,042
Benefits paid	(16,394		)	(15,496		)	(2,882		)	(3,826		)
Other expense	(944		)	(872		)	—			—
Fair value of plan assets at end of year	$	295,655		$	302,464		$	—		$	—

Funded Status at End of Year:
Net accrued benefit cost	$	(117,492	)	$	(44,000	)	$	(24,833	)	$	(21,158	)

Amounts Recognized in the Consolidated
Balance Sheets Consist of:
Noncurrent assets	$	—		$	3,032		$	—		$	—
Current liabilities	(1,626		)	(1,475		)	(1,262		)	(1,566		)
Noncurrent liabilities	(115,866		)	(45,557		)	(23,571		)	(19,592		)
Net amount recognized	$	(117,492	)	$	(44,000	)	$	(24,833	)	$	(21,158	)

Net gains or losses and prior service costs or credits recognized in other comprehensive income for the three years ended December 31 are as follows:

	Pension									Postretirement
	2011			2010			2009			2011			2010			2009
Net (losses) gains	$	(75,995	)	$	1,348		$	7,778		$	(3,934	)	$	(965	)	$	(533	)
Prior service cost	—			(1,704		)	(5,352		)	631			—			—

Net gains or losses and prior service costs or credits reclassified from other comprehensive income and recognized as a component of pension and postretirement expense for the three years ended December 31 are as follows:

	Pension						Postretirement
	2011		2010		2009		2011		2010			2009
Amortization of losses	$	10,372	$	6,456	$	6,196	$	570	$	3,357		$	5,841
Amortization of prior service cost (benefit)	1,359		1,657		1,830		69		(5,334		)	(9,480		)

Net losses and prior service costs or credits that have not yet been included in pension and postretirement expense for the two years ended December 31, which have been recognized as a component of AOCI are as follows:

	Pension						Postretirement
	2011			2010			2011			2010
Prior service (cost) credit	$	(8,370	)	$	(9,729	)	$	167		$	(532	)
Net losses	(191,761		)	(126,138		)	(10,500		)	(7,137		)
Deferred income tax benefit	62,797			43,056			3,583			2,659
AOCI	$	(137,334	)	$	(92,811	)	$	(6,750	)	$	(5,010	)

The accumulated benefit obligation for all of the Company’s defined benefit plans was $392.2 million and $329.3 million at December 31, 2011 and 2010, respectively.

For pension and postretirement plans with accumulated benefit obligations in excess of plan assets, the following table sets forth the projected and accumulated benefit obligations and the fair value of plan assets for the two years ended December 31:

	2011		2010
Projected benefit obligation	$	437,980	$	323,918
Accumulated benefit obligation	392,182		285,590
Fair value of plan assets	295,655		255,728

The following tables set forth the components of net pension and postretirement benefit cost that have been recognized during the three years ended December 31:

	Pension									Postretirement
	2011			2010			2009			2011		2010			2009
Components of Net Periodic Benefit Cost
Service cost	$	6,782		$	6,196		$	6,489		$	673	$	587		$	482
Interest cost	18,087			17,740			18,082			972		1,029			1,144
Expected return on plan assets	(25,819		)	(21,651		)	(21,427		)	—		—			—
Amortization of prior service cost (benefit)	1,359			1,657			1,830			69		(5,334		)	(9,480		)
Amortization of losses	10,372			6,456			6,196			570		3,357			5,841
Net periodic benefit cost (benefit)	$	10,781		$	10,398		$	11,170		$	2,284	$	(361	)	$	(2,013	)

The estimated pre-tax amounts that will be amortized from AOCI into net periodic benefit cost in 2012 are as follows:

	Pension		Postretirement
Amortization of loss	$	16,185	$	526
Amortization of prior service cost	1,308		25
Total amortization of AOCI loss	$	17,493	$	551

The following table sets forth the principal assumptions inherent in the determination of benefit obligations and net periodic benefit cost of the pension and postretirement benefit plans as of December 31:

	Pension						Postretirement
	2011		2010		2009		2011		2010		2009
Assumptions used to determine benefit obligations at December 31:
Discount rate	4.20	%	5.25	%	5.80	%	4.10	%	5.10	%	5.50	%
Rate of compensation increase	4.50	%	4.50	%	4.50	%	4.50	%	4.50	%	4.50	%
Assumptions used to determine net periodic benefit cost for years ended December 31:
Discount rate	5.25	%	5.80	%	6.15	%	5.10	%	5.50	%	6.15	%
Expected long-term return on plan assets	8.50	%	8.50	%	8.50	%	—		—		—
Rate of compensation increase	4.50	%	4.50	%	4.50	%	4.50	%	4.50	%	4.50	%

At December 31, 2011, the pension plans’ discount rate was 4.20 percent, which closely approximates interest rates on high quality, long-term obligations. Effective December 31, 2011, the expected return on plan assets remained at 8.5 percent, which is based on historical and expected long-term rates of return on broad equity and bond indices and consideration of the actual annualized rate of return. The Company’s external consultants utilize this information in developing assumptions for returns, risks and correlation of asset classes which are then used to establish the asset allocation ranges.

The following table sets forth the assumed health care cost trend rates at December 31:

	Postretirement
	2011		2010
Health care cost trend rate assumed for next year	8.00	%	8.50	%
Rate to which the cost trend rate is assumed to decline (ultimate trend rate)	5.00	%	5.00	%
Year that the rate reaches the ultimate trend rate	2017		2017

Assumed health care cost trend rates have a significant effect on the amounts reported for the postretirement benefit plans. The following table shows the effect of a one percentage point change in assumed health care cost trends:

	1 Percent
Effect on:	Increase		Decrease
Total of service and interest cost components	$	171	$	(143	)
Accumulated postretirement benefit obligation	1,781		(1,533		)

Investment of Plan Assets

The Company’s pension plans’ asset allocation at December 31, 2011 and 2010, and target allocation ranges by asset category are as follows:

	Percentage of Plan Assets				Target Allocation Range
Asset Category	2011		2010
Domestic equity securities	44	%	44	%	40-45%
International equity securities	20	%	23	%	20-30%
Domestic fixed income securities	28	%	25	%	25-30%
International fixed income securities	5	%	5	%	4-6%
Real estate fund	3	%	3	%	2-4%
Total	100	%	100	%

The Company's Pension and Savings Plan Committee and the Audit Committee of the Board of Directors oversee the pension plans’ investment program which is designed to maximize returns and provide sufficient liquidity to meet plan obligations while maintaining acceptable risk levels. The investment approach emphasizes diversification by allocating the plans’ assets among asset categories and selecting investment managers whose various investment methodologies will be minimally correlative with each other. Investments within the equity categories may include large capitalization, small capitalization and emerging market securities, while the international fixed income portfolio may include emerging markets debt. Pension assets did not include a direct investment in Rayonier common stock at December 31, 2011 or 2010.

Fair Value Measurements

The following table sets forth by level, within the fair value hierarchy (see Note 2 — Summary of Significant Accounting Policiesfor definition), the assets of the plans as of December 31, 2011 and 2010:

Asset Category	Fair Value at December 31, 2011 Level 1		Fair Value at December 31, 2010 Level 1
Domestic equity securities	$	128,834	$	130,274
International equity securities	57,728		68,878
Domestic fixed income securities	80,243		75,090
International fixed income securities	14,381		14,410
Real estate fund	9,846		8,986
Short-term investments	4,623		4,826
Total	$	295,655	$	302,464

The valuation methodology used for assets measured at fair value for these funds is the net asset value in an observable market. There have been no changes in the methodology used during the years ended December 31, 2011 and 2010.

Cash Flows

Expected benefit payments in future years are as follows:

	Pension Benefits		Postretirement Benefits
2012	$	17,607	$	1,262
2013	18,657		1,388
2014	19,745		1,483
2015	20,721		1,559
2016	21,773		1,651
2017 - 2021	123,358		8,281

The Company has no mandatory pension contribution requirements in 2012, but may make discretionary contributions.

Defined Contribution Plans

The Company provides defined contribution plans to all of its hourly and salaried employees. Company contributions charged to expense for these plans were $2.6 million, $2.4 million and $2.2 million for the years ended December 31, 2011, 2010 and 2009, respectively. Rayonier Hourly and Salaried Defined Contribution Plans include Rayonier common stock with a fair market value of $85.4 million and $66.4 million at December 31, 2011 and 2010, respectively.

As discussed above, all pension plans are currently closed to new employees. Employees not eligible for the pension plans are immediately eligible to participate in the Company’s 401(k) plan and receive an enhanced contribution. Company contributions related to this plan enhancement for the years ended December 31, 2011, 2010 and 2009 were $0.9 million, $0.6 million and $0.4 million, respectively.