x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
Large accelerated filer x | Accelerated filer o | |
Non-accelerated filer o | Smaller reporting company o |
Item | Page | ||
PART I - FINANCIAL INFORMATION | |||
1. | |||
2. | |||
3. | |||
4. | |||
PART II - OTHER INFORMATION | |||
2. | |||
6. | |||
Three Months Ended March 31, | |||||||
2012 | 2011 | ||||||
SALES | $ | 355,780 | $ | 357,731 | |||
Costs and Expenses | |||||||
Cost of sales | 253,313 | 257,511 | |||||
Selling and general expenses | 19,619 | 16,433 | |||||
Other operating income, net | (1,148 | ) | (2,118 | ) | |||
271,784 | 271,826 | ||||||
Equity in income of New Zealand joint venture | 13 | 1,673 | |||||
OPERATING INCOME | 84,009 | 87,578 | |||||
Interest expense | (11,825 | ) | (13,317 | ) | |||
Interest and miscellaneous (expense) income, net | (23 | ) | 293 | ||||
INCOME BEFORE INCOME TAXES | 72,161 | 74,554 | |||||
Income tax expense | (18,724 | ) | (16,142 | ) | |||
NET INCOME | 53,437 | 58,412 | |||||
OTHER COMPREHENSIVE INCOME (LOSS) | |||||||
Foreign currency translation adjustment | 5,825 | 288 | |||||
New Zealand joint venture cash flow hedges | 1,205 | (567 | ) | ||||
Amortization of gains/losses from pension and postretirement plans, net of income tax expense of $1,368 and $928 | 3,140 | 2,093 | |||||
Total other comprehensive income | 10,170 | 1,814 | |||||
COMPREHENSIVE INCOME | $ | 63,607 | $ | 60,226 | |||
EARNINGS PER COMMON SHARE (Note 2) | |||||||
Basic earnings per share | $ | 0.44 | $ | 0.48 | |||
Diluted earnings per share | $ | 0.42 | $ | 0.47 | |||
Dividends per share | $ | 0.40 | $ | 0.36 |
March 31, 2012 | December 31, 2011 | ||||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | $ | 236,575 | $ | 78,603 | |||
Accounts receivable, less allowance for doubtful accounts of $350 and $399 | 97,198 | 95,008 | |||||
Inventory | |||||||
Finished goods | 80,457 | 96,261 | |||||
Work in progress | 2,864 | 5,544 | |||||
Raw materials | 16,922 | 18,295 | |||||
Manufacturing and maintenance supplies | 2,074 | 1,898 | |||||
Total inventory | 102,317 | 121,998 | |||||
Prepaid and other current assets | 62,010 | 48,893 | |||||
Total current assets | 498,100 | 344,502 | |||||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 1,504,291 | 1,503,711 | |||||
PROPERTY, PLANT AND EQUIPMENT | |||||||
Land | 26,952 | 26,917 | |||||
Buildings | 144,018 | 140,269 | |||||
Machinery and equipment | 1,350,939 | 1,355,897 | |||||
Construction in progress | 157,376 | 96,097 | |||||
Total property, plant and equipment, gross | 1,679,285 | 1,619,180 | |||||
Less — accumulated depreciation | (1,157,275 | ) | (1,157,628 | ) | |||
Total property, plant and equipment, net | 522,010 | 461,552 | |||||
INVESTMENT IN JOINT VENTURE (Note 5) | 74,388 | 69,219 | |||||
OTHER ASSETS | 195,094 | 190,364 | |||||
TOTAL ASSETS | $ | 2,793,883 | $ | 2,569,348 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable | $ | 100,681 | $ | 72,873 | |||
Current maturities of long-term debt | 50,512 | 28,110 | |||||
Accrued taxes | 17,350 | 5,223 | |||||
Accrued payroll and benefits | 20,322 | 26,846 | |||||
Accrued interest | 11,075 | 7,044 | |||||
Accrued customer incentives | 7,148 | 10,369 | |||||
Other current liabilities | 16,064 | 17,855 | |||||
Current liabilities for dispositions and discontinued operations (Note 10) | 9,931 | 9,931 | |||||
Total current liabilities | 233,083 | 178,251 | |||||
LONG-TERM DEBT | 973,717 | 819,229 | |||||
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS (Note 10) | 79,194 | 80,893 | |||||
PENSION AND OTHER POSTRETIREMENT BENEFITS (Note 12) | 140,517 | 140,623 | |||||
OTHER NON-CURRENT LIABILITIES | 24,987 | 27,279 | |||||
COMMITMENTS AND CONTINGENCIES (Note 9 and 11) | |||||||
SHAREHOLDERS’ EQUITY | |||||||
Common Shares, 240,000,000 shares authorized, 122,450,771 and 122,035,177 shares issued and outstanding | 634,976 | 630,286 | |||||
Retained earnings | 810,687 | 806,235 | |||||
Accumulated other comprehensive loss | (103,278 | ) | (113,448 | ) | |||
TOTAL SHAREHOLDERS' EQUITY | 1,342,385 | 1,323,073 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 2,793,883 | $ | 2,569,348 |
Three Months Ended March 31, | |||||||
2012 | 2011 | ||||||
OPERATING ACTIVITIES | |||||||
Net income | $ | 53,437 | $ | 58,412 | |||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation, depletion and amortization | 31,168 | 31,870 | |||||
Non-cash cost of real estate sold | 1,382 | 296 | |||||
Stock-based incentive compensation expense | 6,466 | 4,275 | |||||
Amortization of debt discount/premium | 1,890 | 2,152 | |||||
Deferred income taxes | 3,028 | 7,345 | |||||
Amortization of gains/losses from pension and postretirement plans | 4,508 | 3,021 | |||||
Other | (1,909 | ) | (5,215 | ) | |||
Changes in operating assets and liabilities: | |||||||
Receivables | (1,911 | ) | (14,766 | ) | |||
Inventories | 17,035 | 9,161 | |||||
Accounts payable | 3,978 | 14,644 | |||||
All other operating activities | (6,007 | ) | 6,957 | ||||
Expenditures for dispositions and discontinued operations | (1,711 | ) | (2,447 | ) | |||
CASH PROVIDED BY OPERATING ACTIVITIES | 111,354 | 115,705 | |||||
INVESTING ACTIVITIES | |||||||
Capital expenditures | (42,079 | ) | (34,761 | ) | |||
Purchase of timberlands | (8,689 | ) | (2,942 | ) | |||
Jesup mill cellulose specialties expansion (gross purchases of $41,051, net of purchases on account of $15,025) | (26,026 | ) | — | ||||
Change in restricted cash | (5,609 | ) | — | ||||
Other | 8,736 | 6,882 | |||||
CASH USED FOR INVESTING ACTIVITIES | (73,667 | ) | (30,821 | ) | |||
FINANCING ACTIVITIES | |||||||
Issuance of debt | 340,000 | — | |||||
Repayment of debt | (165,000 | ) | (75,000 | ) | |||
Dividends paid | (49,249 | ) | (43,894 | ) | |||
Proceeds from the issuance of common shares | 2,061 | 5,399 | |||||
Excess tax benefits on stock-based compensation | 3,946 | 3,970 | |||||
Debt issuance costs | (3,565 | ) | — | ||||
Repurchase of common shares | (7,783 | ) | (7,826 | ) | |||
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 120,410 | (117,351 | ) | ||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (125 | ) | 116 | ||||
CASH AND CASH EQUIVALENTS | |||||||
Change in cash and cash equivalents | 157,972 | (32,351 | ) | ||||
Balance, beginning of year | 78,603 | 349,463 | |||||
Balance, end of period | $ | 236,575 | $ | 317,112 | |||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||
Cash paid (received) during the period: | |||||||
Interest | $ | 5,213 | $ | 4,671 | |||
Income taxes | $ | 325 | $ | (5,892 | ) | ||
Non-cash investing activity: | |||||||
Capital assets purchased on account | $ | 44,576 | $ | 16,425 |
1. | BASIS OF PRESENTATION |
2. | EARNINGS PER COMMON SHARE |
Three Months Ended March 31, | |||||||
2012 | 2011 | ||||||
Net income | $ | 53,437 | $ | 58,412 | |||
Shares used for determining basic earnings per common share | 122,352,435 | 121,420,046 | |||||
Dilutive effect of: | |||||||
Stock options | 719,166 | 715,043 | |||||
Performance and restricted shares | 651,729 | 697,691 | |||||
Assumed conversion of Senior Exchangeable Notes (a) (b) | 2,967,187 | 1,462,679 | |||||
Assumed conversion of warrants (b) | 1,241,612 | — | |||||
Shares used for determining diluted earnings per common share | 127,932,129 | 124,295,459 | |||||
Basic earnings per common share | $ | 0.44 | $ | 0.48 | |||
Diluted earnings per common share | $ | 0.42 | $ | 0.47 |
Three Months Ended March 31, | |||||
2012 | 2011 | ||||
Anti-dilutive shares excluded from the computations of diluted earnings per share: | |||||
Stock options, performance and restricted shares | 445,859 | 196,964 | |||
Assumed conversion of exchangeable note hedges (a) | 2,967,187 | 1,462,679 | |||
Total | 3,413,046 | 1,659,643 |
3. | INCOME TAXES |
4. | RESTRICTED DEPOSITS |
5. | JOINT VENTURE INVESTMENT |
6. | SHAREHOLDERS’ EQUITY |
Common Shares | Retained Earnings | Accumulated Other Comprehensive Loss | Shareholders’ Equity | |||||||||||||||
Shares | Amount | |||||||||||||||||
Balance, December 31, 2010 | 121,023,140 | $ | 602,882 | $ | 717,058 | $ | (68,358 | ) | $ | 1,251,582 | ||||||||
Net income | — | — | 276,005 | — | 276,005 | |||||||||||||
Dividends ($1.52 per share) | — | — | (186,828 | ) | — | (186,828 | ) | |||||||||||
Issuance of shares under incentive stock plans | 1,220,731 | 13,451 | — | — | 13,451 | |||||||||||||
Stock-based compensation | — | 16,181 | — | — | 16,181 | |||||||||||||
Excess tax benefit on stock-based compensation | — | 5,681 | — | — | 5,681 | |||||||||||||
Repurchase of common shares | (208,694 | ) | (7,909 | ) | — | — | (7,909 | ) | ||||||||||
Net loss from pension and postretirement plans | — | — | — | (46,263 | ) | (46,263 | ) | |||||||||||
Foreign currency translation adjustment | — | — | — | 3,546 | 3,546 | |||||||||||||
Joint venture cash flow hedges | — | — | — | (2,373 | ) | (2,373 | ) | |||||||||||
Balance, December 31, 2011 | 122,035,177 | $ | 630,286 | $ | 806,235 | $ | (113,448 | ) | $ | 1,323,073 | ||||||||
Net income | — | — | 53,437 | — | 53,437 | |||||||||||||
Dividends ($0.40 per share) | — | — | (48,985 | ) | — | (48,985 | ) | |||||||||||
Issuance of shares under incentive stock plans | 585,351 | 2,061 | — | — | 2,061 | |||||||||||||
Stock-based compensation | — | 6,466 | — | — | 6,466 | |||||||||||||
Excess tax benefit on stock-based compensation | — | 3,946 | — | — | 3,946 | |||||||||||||
Repurchase of common shares | (169,757 | ) | (7,783 | ) | — | — | (7,783 | ) | ||||||||||
Amortization of gains/losses from pension and postretirement plans | — | — | — | 3,140 | 3,140 | |||||||||||||
Foreign currency translation adjustment | — | — | — | 5,825 | 5,825 | |||||||||||||
Joint venture cash flow hedges | — | — | — | 1,205 | 1,205 | |||||||||||||
Balance, March 31, 2012 | 122,450,771 | $ | 634,976 | $ | 810,687 | $ | (103,278 | ) | $ | 1,342,385 |
7. | SEGMENT AND GEOGRAPHICAL INFORMATION |
March 31, | December 31, | ||||||
ASSETS | 2012 | 2011 | |||||
Forest Resources | $ | 1,618,311 | $ | 1,603,515 | |||
Real Estate | 107,080 | 102,682 | |||||
Performance Fibers | 706,260 | 646,447 | |||||
Wood Products | 21,758 | 21,264 | |||||
Other Operations | 23,456 | 24,576 | |||||
Corporate and other | 317,018 | 170,864 | |||||
Total | $ | 2,793,883 | $ | 2,569,348 |
Three Months Ended March 31, | |||||||
SALES | 2012 | 2011 | |||||
Forest Resources | $ | 52,195 | $ | 48,180 | |||
Real Estate | 12,647 | 13,462 | |||||
Performance Fibers | 250,855 | 251,163 | |||||
Wood Products | 19,209 | 15,790 | |||||
Other Operations | 21,140 | 30,412 | |||||
Intersegment Eliminations (a) | (266 | ) | (1,276 | ) | |||
Total | $ | 355,780 | $ | 357,731 |
(a) | Intersegment eliminations primarily reflect sales from our Forest Resources segment to our Performance Fibers segment. |
Three Months Ended March 31, | |||||||
OPERATING INCOME (LOSS) | 2012 | 2011 | |||||
Forest Resources | $ | 8,005 | $ | 11,050 | |||
Real Estate | 6,478 | 7,372 | |||||
Performance Fibers | 80,630 | 75,710 | |||||
Wood Products | 923 | 453 | |||||
Other Operations | (931 | ) | 799 | ||||
Corporate and other | (11,096 | ) | (7,806 | ) | |||
Total | $ | 84,009 | $ | 87,578 |
Three Months Ended March 31, | |||||||
DEPRECIATION, DEPLETION AND AMORTIZATION | 2012 | 2011 | |||||
Forest Resources | $ | 16,833 | $ | 15,404 | |||
Real Estate | 1,845 | 2,691 | |||||
Performance Fibers | 11,361 | 12,715 | |||||
Wood Products | 755 | 821 | |||||
Corporate and other | 374 | 239 | |||||
Total | $ | 31,168 | $ | 31,870 |
8. | FAIR VALUE MEASUREMENTS |
March 31, 2012 | December 31, 2011 | ||||||||||||||
Asset (liability) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||
Cash and cash equivalents | $ | 236,575 | $ | 236,575 | $ | 78,603 | $ | 78,603 | |||||||
Current maturities of long-term debt | (50,512 | ) | (58,213 | ) | (28,110 | ) | (29,319 | ) | |||||||
Long-term debt | (973,717 | ) | (1,123,502 | ) | (819,229 | ) | (994,851 | ) |
Asset | Carrying Value at March 31, 2012 | Level 2 | Carrying Value at December 31, 2011 | Level 2 | ||||||||||||
Investment in special-purpose entity | $ | 2,690 | $ | 2,690 | $ | 2,690 | $ | 2,690 | ||||||||
9. | GUARANTEES |
Financial Commitments | Maximum Potential Payment | Carrying Amount of Liability | ||||||
Standby letters of credit (a) | $ | 43,477 | $ | 38,110 | ||||
Guarantees (b) | 2,555 | 43 | ||||||
Surety bonds (c) | 6,134 | 1,330 | ||||||
Total financial commitments | $ | 52,166 | $ | 39,483 |
(a) | Approximately $39 million of the standby letters of credit serve as credit support for industrial revenue bonds. The remaining letters of credit support various insurance related agreements, primarily workers’ compensation and pollution liability policy requirements. These letters of credit will expire at various dates during 2012 and 2013 and will be renewed as required. |
(b) | In conjunction with a timberland sale and note monetization in the first quarter of 2004, the Company issued a make-whole agreement pursuant to which it guaranteed $2.6 million of obligations of a special-purpose entity that was established to complete the monetization. At March 31, 2012, the Company has a de minimus liability to reflect the fair market value of its obligation to perform under the make-whole agreement. |
(c) | Rayonier issues surety bonds primarily to secure timber harvesting obligations in the State of Washington and to provide collateral for the Company’s workers’ compensation self-insurance program in that state. These surety bonds expire at various dates between 2012 and 2014 and are expected to be renewed as required. |
10. | LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS |
March 31, | December 31, | |||||||
2012 | 2011 | |||||||
Balance, beginning of period | $ | 90,824 | $ | 93,160 | ||||
Expenditures charged to liabilities | (1,711 | ) | (9,209 | ) | ||||
Increase to liabilities | 12 | 6,873 | ||||||
Balance, end of period | 89,125 | 90,824 | ||||||
Less: Current portion | (9,931 | ) | (9,931 | ) | ||||
Non-current portion | $ | 79,194 | $ | 80,893 |
11. | CONTINGENCIES |
12. | EMPLOYEE BENEFIT PLANS |
Pension | Postretirement | ||||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||
Service cost | $ | 1,940 | $ | 1,695 | $ | 210 | $ | 182 | |||||||
Interest cost | 3,989 | 4,522 | 223 | 236 | |||||||||||
Expected return on plan assets | (5,879 | ) | (6,455 | ) | — | — | |||||||||
Amortization of prior service cost | 302 | 340 | 6 | 22 | |||||||||||
Amortization of losses | 4,056 | 2,593 | 144 | 66 | |||||||||||
Net periodic benefit cost | $ | 4,408 | $ | 2,695 | $ | 583 | $ | 506 |
13. | DEBT |
14. | ACCUMULATED OTHER COMPREHENSIVE LOSS |
March 31, 2012 | December 31, 2011 | ||||||
Foreign currency translation adjustments (a) | $ | 40,302 | $ | 34,477 | |||
Joint venture cash flow hedges | (2,636 | ) | (3,841 | ) | |||
Unrecognized components of employee benefit plans, net of tax | (140,944 | ) | (144,084 | ) | |||
Total | $ | (103,278 | ) | $ | (113,448 | ) |
15. | CONSOLIDATING FINANCIAL STATEMENTS |
CONDENSED CONSOLIDATING STATEMENTS OF INCOME For the Three Months Ended March 31, 2012 | |||||||||||||||||||||||||||
Rayonier Inc. (Parent Guarantor) | ROC (Subsidiary Guarantor) | Rayonier TRS Holdings Inc. (Issuer) | Subsidiaries of Rayonier TRS Holdings Inc. (Non- guarantors) | All Other Subsidiaries (Non- guarantors) | Consolidating Adjustments | Total Consolidated | |||||||||||||||||||||
SALES | $ | — | $ | — | $ | — | $ | 335,438 | $ | 38,171 | $ | (17,829 | ) | $ | 355,780 | ||||||||||||
Costs and Expenses | |||||||||||||||||||||||||||
Cost of sales | — | — | — | 247,054 | 26,818 | (20,559 | ) | 253,313 | |||||||||||||||||||
Selling and general expenses | — | 3,311 | — | 15,512 | 796 | — | 19,619 | ||||||||||||||||||||
Other operating expense (income), net | — | 121 | — | 1,512 | (2,781 | ) | — | (1,148 | ) | ||||||||||||||||||
— | 3,432 | — | 264,078 | 24,833 | (20,559 | ) | 271,784 | ||||||||||||||||||||
Equity in income (loss) of New Zealand joint venture | — | — | — | 171 | (158 | ) | — | 13 | |||||||||||||||||||
OPERATING (LOSS) INCOME | — | (3,432 | ) | — | 71,531 | 13,180 | 2,730 | 84,009 | |||||||||||||||||||
Interest expense | (1,249 | ) | (238 | ) | (10,226 | ) | 687 | (799 | ) | — | (11,825 | ) | |||||||||||||||
Interest and miscellaneous income (expense), net | 1,912 | 1,327 | (1,208 | ) | (3,904 | ) | 1,850 | — | (23 | ) | |||||||||||||||||
Equity in income from subsidiaries | 52,774 | 55,446 | 45,745 | — | — | (153,965 | ) | — | |||||||||||||||||||
INCOME BEFORE INCOME TAXES | 53,437 | 53,103 | 34,311 | 68,314 | 14,231 | (151,235 | ) | 72,161 | |||||||||||||||||||
Income tax (expense) benefit | — | (329 | ) | 4,174 | (22,569 | ) | — | — | (18,724 | ) | |||||||||||||||||
NET INCOME | $ | 53,437 | $ | 52,774 | $ | 38,485 | $ | 45,745 | $ | 14,231 | $ | (151,235 | ) | $ | 53,437 | ||||||||||||
OTHER COMPREHENSIVE INCOME | 10,170 | 10,170 | 102 | 102 | 7,132 | (17,506 | ) | 10,170 | |||||||||||||||||||
COMPREHENSIVE INCOME | $ | 63,607 | $ | 62,944 | $ | 38,587 | $ | 45,847 | $ | 21,363 | $ | (168,741 | ) | $ | 63,607 |
CONDENSED CONSOLIDATING STATEMENTS OF INCOME For the Three Months Ended March 31, 2011 | |||||||||||||||||||||||||||
Rayonier Inc. (Parent Guarantor) | ROC (Subsidiary Guarantor) | Rayonier TRS Holdings Inc. (Issuer) | Subsidiaries of Rayonier TRS Holdings Inc. (Non- guarantors) | All Other Subsidiaries (Non- guarantors) | Consolidating Adjustments | Total Consolidated | |||||||||||||||||||||
SALES | $ | — | $ | — | $ | — | $ | 328,265 | $ | 42,833 | $ | (13,367 | ) | $ | 357,731 | ||||||||||||
Costs and Expenses | |||||||||||||||||||||||||||
Cost of sales | — | — | — | 244,297 | 27,997 | (14,783 | ) | 257,511 | |||||||||||||||||||
Selling and general expenses | — | 2,716 | — | 13,070 | 647 | — | 16,433 | ||||||||||||||||||||
Other operating expense (income), net | — | 49 | — | 298 | (2,464 | ) | (1 | ) | (2,118 | ) | |||||||||||||||||
— | 2,765 | — | 257,665 | 26,180 | (14,784 | ) | 271,826 | ||||||||||||||||||||
Equity in income of New Zealand joint venture | — | — | — | 194 | 1,479 | — | 1,673 | ||||||||||||||||||||
OPERATING (LOSS) INCOME | — | (2,765 | ) | — | 70,794 | 18,132 | 1,417 | 87,578 | |||||||||||||||||||
Interest expense | — | (130 | ) | (13,050 | ) | (112 | ) | (25 | ) | — | (13,317 | ) | |||||||||||||||
Interest and miscellaneous income (expense), net | — | 1,337 | (1,073 | ) | (5,024 | ) | 5,053 | — | 293 | ||||||||||||||||||
Equity in income from subsidiaries | 58,412 | 60,044 | 44,435 | — | — | (162,891 | ) | — | |||||||||||||||||||
INCOME BEFORE INCOME TAXES | 58,412 | 58,486 | 30,312 | 65,658 | 23,160 | (161,474 | ) | 74,554 | |||||||||||||||||||
Income tax (expense) benefit | — | (74 | ) | 5,155 | (21,223 | ) | — | — | (16,142 | ) | |||||||||||||||||
NET INCOME | $ | 58,412 | $ | 58,412 | $ | 35,467 | $ | 44,435 | $ | 23,160 | $ | (161,474 | ) | $ | 58,412 | ||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | 1,814 | 1,814 | 149 | 149 | (191 | ) | (1,921 | ) | 1,814 | ||||||||||||||||||
COMPREHENSIVE INCOME | $ | 60,226 | $ | 60,226 | $ | 35,616 | $ | 44,584 | $ | 22,969 | $ | (163,395 | ) | $ | 60,226 |
CONDENSED CONSOLIDATING BALANCE SHEETS As of March 31, 2012 | |||||||||||||||||||||||||||
Rayonier Inc. (Parent Guarantor) | ROC (Subsidiary Guarantor) | Rayonier TRS Holdings Inc. (Issuer) | Subsidiaries of Rayonier TRS Holdings Inc. (Non- guarantors) | All Other Subsidiaries (Non- guarantors) | Consolidating Adjustments | Total Consolidated | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||
CURRENT ASSETS | |||||||||||||||||||||||||||
Cash and cash equivalents | $ | 131,626 | $ | 27,671 | $ | 60,750 | $ | 8,520 | $ | 8,008 | $ | — | $ | 236,575 | |||||||||||||
Accounts receivable, less allowance for doubtful accounts | — | 24 | — | 94,699 | 2,475 | — | 97,198 | ||||||||||||||||||||
Inventory | — | — | — | 110,274 | — | (7,957 | ) | 102,317 | |||||||||||||||||||
Intercompany interest receivable | — | — | — | — | 3,111 | (3,111 | ) | — | |||||||||||||||||||
Prepaid and other current assets | — | 974 | 796 | 53,540 | 6,700 | — | 62,010 | ||||||||||||||||||||
Total current assets | 131,626 | 28,669 | 61,546 | 267,033 | 20,294 | (11,068 | ) | 498,100 | |||||||||||||||||||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | — | — | — | 40,154 | 1,462,277 | 1,860 | 1,504,291 | ||||||||||||||||||||
NET PROPERTY, PLANT AND EQUIPMENT | — | 2,484 | — | 517,340 | 2,186 | — | 522,010 | ||||||||||||||||||||
INVESTMENT IN JOINT VENTURE | — | — | — | (11,281 | ) | 85,669 | — | 74,388 | |||||||||||||||||||
INVESTMENT IN SUBSIDIARIES | 1,328,752 | 1,524,491 | 1,202,519 | — | — | (4,055,762 | ) | — | |||||||||||||||||||
INTERCOMPANY NOTES RECEIVABLE | 204,420 | — | 19,262 | — | — | (223,682 | ) | — | |||||||||||||||||||
OTHER ASSETS | 3,535 | 26,802 | 5,750 | 699,073 | 12,469 | (552,535 | ) | 195,094 | |||||||||||||||||||
TOTAL ASSETS | $ | 1,668,333 | $ | 1,582,446 | $ | 1,289,077 | $ | 1,512,319 | $ | 1,582,895 | $ | (4,841,187 | ) | $ | 2,793,883 | ||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||||
CURRENT LIABILITIES | |||||||||||||||||||||||||||
Accounts payable | $ | — | $ | 2,058 | $ | 9 | $ | 97,448 | $ | 1,166 | $ | — | $ | 100,681 | |||||||||||||
Current maturities of long-term debt | — | — | 50,512 | — | — | — | 50,512 | ||||||||||||||||||||
Accrued taxes | — | 525 | — | 14,188 | 2,637 | — | 17,350 | ||||||||||||||||||||
Accrued payroll and benefits | — | 8,211 | — | 10,572 | 1,539 | — | 20,322 | ||||||||||||||||||||
Accrued interest | 948 | 366 | 8,818 | 334 | 609 | — | 11,075 | ||||||||||||||||||||
Accrued customer incentives | — | — | — | 7,148 | — | — | 7,148 | ||||||||||||||||||||
Other current liabilities | — | 2,237 | — | 7,367 | 6,460 | — | 16,064 | ||||||||||||||||||||
Current liabilities for dispositions and discontinued operations | — | — | — | 9,931 | — | — | 9,931 | ||||||||||||||||||||
Total current liabilities | 948 | 13,397 | 59,339 | 146,988 | 12,411 | — | 233,083 | ||||||||||||||||||||
LONG-TERM DEBT | 325,000 | — | 560,420 | — | 88,297 | — | 973,717 | ||||||||||||||||||||
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS | — | — | — | 79,194 | — | — | 79,194 | ||||||||||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFITS | — | 113,491 | — | 27,026 | — | — | 140,517 | ||||||||||||||||||||
OTHER NON-CURRENT LIABILITIES | — | 17,557 | — | 6,809 | 621 | — | 24,987 | ||||||||||||||||||||
INTERCOMPANY PAYABLE | — | 109,249 | — | 49,783 | 215,307 | (374,339 | ) | — | |||||||||||||||||||
TOTAL LIABILITIES | 325,948 | 253,694 | 619,759 | 309,800 | 316,636 | (374,339 | ) | 1,451,498 | |||||||||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 1,342,385 | 1,328,752 | 669,318 | 1,202,519 | 1,266,259 | (4,466,848 | ) | 1,342,385 | |||||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,668,333 | $ | 1,582,446 | $ | 1,289,077 | $ | 1,512,319 | $ | 1,582,895 | $ | (4,841,187 | ) | $ | 2,793,883 |
CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2011 | |||||||||||||||||||||||||||
Rayonier Inc. (Parent Guarantor) | ROC (Subsidiary Guarantor) | Rayonier TRS Holdings Inc. (Issuer) | Subsidiaries of Rayonier TRS Holdings Inc. (Non- guarantors) | All Other Subsidiaries (Non- guarantors) | Consolidating Adjustments | Total Consolidated | |||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||
CURRENT ASSETS | |||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 8,977 | $ | 59,976 | $ | 7,398 | $ | 2,252 | $ | — | $ | 78,603 | |||||||||||||
Accounts receivable, less allowance for doubtful accounts | — | 3 | — | 94,399 | 606 | — | 95,008 | ||||||||||||||||||||
Inventory | — | — | — | 133,300 | — | (11,302 | ) | 121,998 | |||||||||||||||||||
Intercompany interest receivable | — | — | — | — | 3,848 | (3,848 | ) | — | |||||||||||||||||||
Prepaid and other current assets | — | 2,328 | 808 | 36,937 | 8,820 | — | 48,893 | ||||||||||||||||||||
Total current assets | — | 11,308 | 60,784 | 272,034 | 15,526 | (15,150 | ) | 344,502 | |||||||||||||||||||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | — | — | — | 39,824 | 1,462,027 | 1,860 | 1,503,711 | ||||||||||||||||||||
NET PROPERTY, PLANT AND EQUIPMENT | — | 2,551 | — | 456,754 | 2,247 | — | 461,552 | ||||||||||||||||||||
INVESTMENT IN JOINT VENTURE | — | — | — | (11,006 | ) | 80,225 | — | 69,219 | |||||||||||||||||||
INVESTMENT IN SUBSIDIARIES | 1,238,661 | 1,490,444 | 1,156,896 | — | — | (3,886,001 | ) | — | |||||||||||||||||||
INTERCOMPANY NOTES RECEIVABLE | 204,420 | — | 19,073 | — | — | (223,493 | ) | — | |||||||||||||||||||
OTHER ASSETS | — | 26,850 | 6,491 | 702,087 | 6,856 | (551,920 | ) | 190,364 | |||||||||||||||||||
TOTAL ASSETS | $ | 1,443,081 | $ | 1,531,153 | $ | 1,243,244 | $ | 1,459,693 | $ | 1,566,881 | $ | (4,674,704 | ) | $ | 2,569,348 | ||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||||
CURRENT LIABILITIES | |||||||||||||||||||||||||||
Accounts payable | $ | — | $ | 1,801 | $ | 10 | $ | 69,648 | $ | 1,414 | $ | — | $ | 72,873 | |||||||||||||
Current maturities of long-term debt | — | — | 28,110 | — | — | — | 28,110 | ||||||||||||||||||||
Accrued taxes | — | (27 | ) | — | 3,934 | 1,316 | — | 5,223 | |||||||||||||||||||
Accrued payroll and benefits | — | 13,810 | — | 10,563 | 2,473 | — | 26,846 | ||||||||||||||||||||
Accrued interest | 8 | 246 | 5,442 | 739 | 609 | — | 7,044 | ||||||||||||||||||||
Accrued customer incentives | — | — | — | 10,369 | — | — | 10,369 | ||||||||||||||||||||
Other current liabilities | — | 1,886 | — | 9,199 | 6,770 | — | 17,855 | ||||||||||||||||||||
Current liabilities for dispositions and discontinued operations | — | — | — | 9,931 | — | — | 9,931 | ||||||||||||||||||||
Total current liabilities | 8 | 17,716 | 33,562 | 114,383 | 12,582 | — | 178,251 | ||||||||||||||||||||
LONG-TERM DEBT | 120,000 | 30,000 | 580,647 | — | 88,582 | — | 819,229 | ||||||||||||||||||||
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS | — | — | — | 80,893 | — | — | 80,893 | ||||||||||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFITS | — | 112,904 | — | 27,719 | — | — | 140,623 | ||||||||||||||||||||
OTHER NON-CURRENT LIABILITIES | — | 20,210 | — | 6,396 | 673 | — | 27,279 | ||||||||||||||||||||
INTERCOMPANY PAYABLE | — | 111,662 | — | 73,406 | 203,208 | (388,276 | ) | — | |||||||||||||||||||
TOTAL LIABILITIES | 120,008 | 292,492 | 614,209 | 302,797 | 305,045 | (388,276 | ) | 1,246,275 | |||||||||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 1,323,073 | 1,238,661 | 629,035 | 1,156,896 | 1,261,836 | (4,286,428 | ) | 1,323,073 | |||||||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,443,081 | $ | 1,531,153 | $ | 1,243,244 | $ | 1,459,693 | $ | 1,566,881 | $ | (4,674,704 | ) | $ | 2,569,348 |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2012 | |||||||||||||||||||||||||||
Rayonier Inc. (Parent Guarantor) | ROC (Subsidiary Guarantor) | Rayonier TRS Holdings Inc. (Issuer) | Subsidiaries of Rayonier TRS Holdings Inc. (Non- guarantors) | All Other Subsidiaries (Non- guarantors) | Consolidating Adjustments | Total Consolidated | |||||||||||||||||||||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | $ | (14,838 | ) | $ | 33,980 | $ | 12,000 | $ | 61,546 | $ | 44,070 | $ | (25,404 | ) | $ | 111,354 | |||||||||||
INVESTING ACTIVITIES | |||||||||||||||||||||||||||
Capital expenditures | — | (55 | ) | — | (33,158 | ) | (8,866 | ) | — | (42,079 | ) | ||||||||||||||||
Purchase of timberlands | — | — | — | — | (8,689 | ) | — | (8,689 | ) | ||||||||||||||||||
Jesup mill cellulose specialties expansion | — | — | — | (26,026 | ) | — | — | (26,026 | ) | ||||||||||||||||||
Change in restricted cash | — | — | — | — | (5,609 | ) | — | (5,609 | ) | ||||||||||||||||||
Investment in Subsidiaries | — | — | 774 | — | — | (774 | ) | — | |||||||||||||||||||
Other | — | (69 | ) | — | 8,955 | (150 | ) | — | 8,736 | ||||||||||||||||||
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES | — | (124 | ) | 774 | (50,229 | ) | (23,314 | ) | (774 | ) | (73,667 | ) | |||||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||||||||||||
Issuance of debt | 325,000 | — | — | — | 15,000 | — | 340,000 | ||||||||||||||||||||
Repayment of debt | (120,000 | ) | (30,000 | ) | — | — | (15,000 | ) | — | (165,000 | ) | ||||||||||||||||
Dividends paid | (49,249 | ) | — | — | — | — | — | (49,249 | ) | ||||||||||||||||||
Proceeds from the issuance of common shares | 2,061 | — | — | — | — | — | 2,061 | ||||||||||||||||||||
Excess tax benefits on stock-based compensation | — | — | — | 3,946 | — | — | 3,946 | ||||||||||||||||||||
Debt issuance costs | (3,565 | ) | — | — | — | — | — | (3,565 | ) | ||||||||||||||||||
Repurchase of common shares | (7,783 | ) | — | — | — | — | — | (7,783 | ) | ||||||||||||||||||
Intercompany distributions | — | 14,838 | (12,000 | ) | (14,016 | ) | (15,000 | ) | 26,178 | — | |||||||||||||||||
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 146,464 | (15,162 | ) | (12,000 | ) | (10,070 | ) | (15,000 | ) | 26,178 | 120,410 | ||||||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | — | — | — | (125 | ) | — | — | (125 | ) | ||||||||||||||||||
CASH AND CASH EQUIVALENTS | |||||||||||||||||||||||||||
Change in cash and cash equivalents | 131,626 | 18,694 | 774 | 1,122 | 5,756 | — | 157,972 | ||||||||||||||||||||
Balance, beginning of year | — | 8,977 | 59,976 | 7,398 | 2,252 | — | 78,603 | ||||||||||||||||||||
Balance, end of period | $ | 131,626 | $ | 27,671 | $ | 60,750 | $ | 8,520 | $ | 8,008 | $ | — | $ | 236,575 |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2011 | |||||||||||||||||||||||||||
Rayonier Inc. (Parent Guarantor) | ROC (Subsidiary Guarantor) | Rayonier TRS Holdings Inc. (Issuer) | Subsidiaries of Rayonier TRS Holdings Inc. (Non- guarantors) | All Other Subsidiaries (Non- guarantors) | Consolidating Adjustments | Total Consolidated | |||||||||||||||||||||
CASH PROVIDED BY OPERATING ACTIVITIES | $ | 46,321 | $ | 26,146 | $ | 15,000 | $ | 69,566 | $ | 36,292 | $ | (77,620 | ) | $ | 115,705 | ||||||||||||
INVESTING ACTIVITIES | |||||||||||||||||||||||||||
Capital expenditures | — | (62 | ) | — | (24,701 | ) | (9,998 | ) | — | (34,761 | ) | ||||||||||||||||
Purchase of timberlands | — | — | — | — | (2,942 | ) | — | (2,942 | ) | ||||||||||||||||||
Investment in Subsidiaries | — | — | 26,011 | — | — | (26,011 | ) | — | |||||||||||||||||||
Other | — | — | — | 6,107 | 775 | — | 6,882 | ||||||||||||||||||||
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES | — | (62 | ) | 26,011 | (18,594 | ) | (12,165 | ) | (26,011 | ) | (30,821 | ) | |||||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||||||||||||
Repayment of debt | — | — | (75,000 | ) | — | — | — | (75,000 | ) | ||||||||||||||||||
Dividends paid | (43,894 | ) | — | — | — | — | — | (43,894 | ) | ||||||||||||||||||
Proceeds from the issuance of common shares | 5,399 | — | — | — | — | — | 5,399 | ||||||||||||||||||||
Excess tax benefits on stock-based compensation | — | — | — | 3,970 | — | — | 3,970 | ||||||||||||||||||||
Repurchase of common shares | (7,826 | ) | — | — | — | — | — | (7,826 | ) | ||||||||||||||||||
Intercompany distributions | — | (46,321 | ) | (15,000 | ) | (42,310 | ) | — | 103,631 | — | |||||||||||||||||
CASH USED FOR FINANCING ACTIVITIES | (46,321 | ) | (46,321 | ) | (90,000 | ) | (38,340 | ) | — | 103,631 | (117,351 | ) | |||||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | — | — | — | 116 | — | — | 116 | ||||||||||||||||||||
CASH AND CASH EQUIVALENTS | |||||||||||||||||||||||||||
Change in cash and cash equivalents | — | (20,237 | ) | (48,989 | ) | 12,748 | 24,127 | — | (32,351 | ) | |||||||||||||||||
Balance, beginning of year | — | 29,759 | 283,258 | 1,280 | 35,166 | — | 349,463 | ||||||||||||||||||||
Balance, end of period | $ | — | $ | 9,522 | $ | 234,269 | $ | 14,028 | $ | 59,293 | $ | — | $ | 317,112 |
CONDENSED CONSOLIDATING STATEMENTS OF INCOME For the Three Months Ended March 31, 2012 | |||||||||||||||||||
Rayonier Inc. (Parent Issuer) | Subsidiary Guarantors | All Other Subsidiaries (Non- guarantors) | Consolidating Adjustments | Total Consolidated | |||||||||||||||
SALES | $ | — | $ | 312,642 | $ | 60,967 | $ | (17,829 | ) | $ | 355,780 | ||||||||
Costs and Expenses | |||||||||||||||||||
Cost of sales | — | 227,508 | 46,364 | (20,559 | ) | 253,313 | |||||||||||||
Selling and general expenses | — | 15,698 | 3,921 | — | 19,619 | ||||||||||||||
Other operating expense (income), net | — | 980 | (2,128 | ) | — | (1,148 | ) | ||||||||||||
— | 244,186 | 48,157 | (20,559 | ) | 271,784 | ||||||||||||||
Equity in income of New Zealand joint venture | — | — | 13 | — | 13 | ||||||||||||||
OPERATING INCOME | — | 68,456 | 12,823 | 2,730 | 84,009 | ||||||||||||||
Interest expense | (1,249 | ) | (9,778 | ) | (798 | ) | — | (11,825 | ) | ||||||||||
Interest and miscellaneous income (expense), net | 1,912 | (3,789 | ) | 1,854 | — | (23 | ) | ||||||||||||
Equity in income from subsidiaries | 52,774 | 16,655 | — | (69,429 | ) | — | |||||||||||||
INCOME BEFORE INCOME TAXES | 53,437 | 71,544 | 13,879 | (66,699 | ) | 72,161 | |||||||||||||
Income tax (expense) benefit | — | (18,770 | ) | 46 | — | (18,724 | ) | ||||||||||||
NET INCOME | $ | 53,437 | $ | 52,774 | $ | 13,925 | $ | (66,699 | ) | $ | 53,437 | ||||||||
OTHER COMPREHENSIVE INCOME | 10,170 | 10,170 | 7,030 | (17,200 | ) | 10,170 | |||||||||||||
COMPREHENSIVE INCOME | $ | 63,607 | $ | 62,944 | $ | 20,955 | $ | (83,899 | ) | $ | 63,607 |
CONDENSED CONSOLIDATING STATEMENTS OF INCOME For the Three Months Ended March 31, 2011 | |||||||||||||||||||
Rayonier Inc. (Parent Issuer) | Subsidiary Guarantors | All Other Subsidiaries (Non- guarantors) | Consolidating Adjustments | Total Consolidated | |||||||||||||||
SALES | $ | — | $ | 296,251 | $ | 74,847 | $ | (13,367 | ) | $ | 357,731 | ||||||||
Costs and Expenses | |||||||||||||||||||
Cost of sales | — | 215,566 | 56,728 | (14,783 | ) | 257,511 | |||||||||||||
Selling and general expenses | — | 12,769 | 3,664 | — | 16,433 | ||||||||||||||
Other operating expense (income), net | — | 1,060 | (3,177 | ) | (1 | ) | (2,118 | ) | |||||||||||
— | 229,395 | 57,215 | (14,784 | ) | 271,826 | ||||||||||||||
Equity in income of New Zealand joint venture | — | — | 1,673 | — | 1,673 | ||||||||||||||
OPERATING INCOME | — | 66,856 | 19,305 | 1,417 | 87,578 | ||||||||||||||
Interest expense | — | (13,292 | ) | (25 | ) | — | (13,317 | ) | |||||||||||
Interest and miscellaneous (expense) income, net | — | (4,762 | ) | 5,055 | — | 293 | |||||||||||||
Equity in income from subsidiaries | 58,412 | 25,374 | — | (83,786 | ) | — | |||||||||||||
INCOME BEFORE INCOME TAXES | 58,412 | 74,176 | 24,335 | (82,369 | ) | 74,554 | |||||||||||||
Income tax expense | — | (15,764 | ) | (378 | ) | — | (16,142 | ) | |||||||||||
NET INCOME | $ | 58,412 | $ | 58,412 | $ | 23,957 | $ | (82,369 | ) | $ | 58,412 | ||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | 1,814 | 1,814 | (281 | ) | (1,533 | ) | 1,814 | ||||||||||||
COMPREHENSIVE INCOME | $ | 60,226 | $ | 60,226 | $ | 23,676 | $ | (83,902 | ) | $ | 60,226 |
CONDENSED CONSOLIDATING BALANCE SHEETS As of March 31, 2012 | |||||||||||||||||||
Rayonier Inc. (Parent Issuer) | Subsidiary Guarantors | All Other Subsidiaries (Non- guarantors) | Consolidating Adjustments | Total Consolidated | |||||||||||||||
ASSETS | |||||||||||||||||||
CURRENT ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | 131,626 | $ | 83,099 | $ | 21,850 | $ | — | $ | 236,575 | |||||||||
Accounts receivable, less allowance for doubtful accounts | — | 89,582 | 7,616 | — | 97,198 | ||||||||||||||
Inventory | — | 109,244 | 1,030 | (7,957 | ) | 102,317 | |||||||||||||
Intercompany interest receivable | — | — | 3,111 | (3,111 | ) | — | |||||||||||||
Prepaid and other current assets | — | 54,679 | 7,331 | — | 62,010 | ||||||||||||||
Total current assets | 131,626 | 336,604 | 40,938 | (11,068 | ) | 498,100 | |||||||||||||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | — | 116,728 | 1,385,703 | 1,860 | 1,504,291 | ||||||||||||||
NET PROPERTY, PLANT AND EQUIPMENT | — | 518,933 | 3,077 | — | 522,010 | ||||||||||||||
INVESTMENT IN JOINT VENTURE | — | — | 74,388 | — | 74,388 | ||||||||||||||
INVESTMENT IN SUBSIDIARIES | 1,328,752 | 796,030 | — | (2,124,782 | ) | — | |||||||||||||
INTERCOMPANY NOTES RECEIVABLE | 204,420 | — | — | (204,420 | ) | — | |||||||||||||
OTHER ASSETS | 3,535 | 706,429 | 37,666 | (552,536 | ) | 195,094 | |||||||||||||
TOTAL ASSETS | $ | 1,668,333 | $ | 2,474,724 | $ | 1,541,772 | $ | (2,890,946 | ) | $ | 2,793,883 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
CURRENT LIABILITIES | |||||||||||||||||||
Accounts payable | $ | — | $ | 97,059 | $ | 3,622 | $ | — | $ | 100,681 | |||||||||
Current maturities of long-term debt | — | 50,512 | — | — | 50,512 | ||||||||||||||
Accrued taxes | — | 14,736 | 2,614 | — | 17,350 | ||||||||||||||
Accrued payroll and benefits | — | 18,065 | 2,257 | — | 20,322 | ||||||||||||||
Accrued interest | 948 | 9,518 | 609 | — | 11,075 | ||||||||||||||
Accrued customer incentives | — | 7,148 | — | — | 7,148 | ||||||||||||||
Other current liabilities | — | 8,700 | 7,364 | — | 16,064 | ||||||||||||||
Current liabilities for dispositions and discontinued operations | — | 9,931 | — | — | 9,931 | ||||||||||||||
Total current liabilities | 948 | 215,669 | 16,466 | — | 233,083 | ||||||||||||||
LONG-TERM DEBT | 325,000 | 560,420 | 88,297 | — | 973,717 | ||||||||||||||
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS | — | 79,194 | — | — | 79,194 | ||||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFITS | — | 140,517 | — | — | 140,517 | ||||||||||||||
OTHER NON-CURRENT LIABILITIES | — | 23,554 | 1,433 | — | 24,987 | ||||||||||||||
INTERCOMPANY PAYABLE | — | 126,618 | 228,460 | (355,078 | ) | — | |||||||||||||
TOTAL LIABILITIES | 325,948 | 1,145,972 | 334,656 | (355,078 | ) | 1,451,498 | |||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 1,342,385 | 1,328,752 | 1,207,116 | (2,535,868 | ) | 1,342,385 | |||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,668,333 | $ | 2,474,724 | $ | 1,541,772 | $ | (2,890,946 | ) | $ | 2,793,883 |
CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2011 | |||||||||||||||||||
Rayonier Inc. (Parent Issuer) | Subsidiary Guarantors | All Other Subsidiaries (Non- guarantors) | Consolidating Adjustments | Total Consolidated | |||||||||||||||
ASSETS | |||||||||||||||||||
CURRENT ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 58,132 | $ | 20,471 | $ | — | $ | 78,603 | |||||||||
Accounts receivable, less allowance for doubtful accounts | — | 90,658 | 4,350 | — | 95,008 | ||||||||||||||
Inventory | — | 132,323 | 977 | (11,302 | ) | 121,998 | |||||||||||||
Intercompany interest receivable | — | — | 3,848 | (3,848 | ) | — | |||||||||||||
Prepaid and other current assets | — | 39,366 | 9,527 | — | 48,893 | ||||||||||||||
Total current assets | — | 320,479 | 39,173 | (15,150 | ) | 344,502 | |||||||||||||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | — | 117,243 | 1,384,608 | 1,860 | 1,503,711 | ||||||||||||||
NET PROPERTY, PLANT AND EQUIPMENT | — | 458,497 | 3,055 | — | 461,552 | ||||||||||||||
INVESTMENT IN JOINT VENTURE | — | — | 69,219 | — | 69,219 | ||||||||||||||
INVESTMENT IN SUBSIDIARIES | 1,238,661 | 801,838 | — | (2,040,499 | ) | — | |||||||||||||
INTERCOMPANY NOTES RECEIVABLE | 204,420 | — | — | (204,420 | ) | — | |||||||||||||
OTHER ASSETS | — | 710,663 | 31,622 | (551,921 | ) | 190,364 | |||||||||||||
TOTAL ASSETS | $ | 1,443,081 | $ | 2,408,720 | $ | 1,527,677 | $ | (2,810,130 | ) | $ | 2,569,348 | ||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
CURRENT LIABILITIES | |||||||||||||||||||
Accounts payable | $ | — | $ | 65,732 | $ | 7,141 | $ | — | $ | 72,873 | |||||||||
Current maturities of long-term debt | — | 28,110 | — | — | 28,110 | ||||||||||||||
Accrued taxes | — | 3,838 | 1,385 | — | 5,223 | ||||||||||||||
Accrued payroll and benefits | — | 23,070 | 3,776 | — | 26,846 | ||||||||||||||
Accrued interest | 8 | 6,427 | 609 | — | 7,044 | ||||||||||||||
Accrued customer incentives | — | 10,369 | — | — | 10,369 | ||||||||||||||
Other current liabilities | — | 10,319 | 7,536 | — | 17,855 | ||||||||||||||
Current liabilities for dispositions and discontinued operations | — | 9,931 | — | — | 9,931 | ||||||||||||||
Total current liabilities | 8 | 157,796 | 20,447 | — | 178,251 | ||||||||||||||
LONG-TERM DEBT | 120,000 | 610,647 | 88,582 | — | 819,229 | ||||||||||||||
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS | — | 80,893 | — | — | 80,893 | ||||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFITS | — | 140,623 | — | — | 140,623 | ||||||||||||||
OTHER NON-CURRENT LIABILITIES | — | 25,894 | 1,385 | — | 27,279 | ||||||||||||||
INTERCOMPANY PAYABLE | — | 154,206 | 214,997 | (369,203 | ) | — | |||||||||||||
TOTAL LIABILITIES | 120,008 | 1,170,059 | 325,411 | (369,203 | ) | 1,246,275 | |||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 1,323,073 | 1,238,661 | 1,202,266 | (2,440,927 | ) | 1,323,073 | |||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 1,443,081 | $ | 2,408,720 | $ | 1,527,677 | $ | (2,810,130 | ) | $ | 2,569,348 |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2012 | |||||||||||||||||||
Rayonier Inc. (Parent Issuer) | Subsidiary Guarantors | All Other Subsidiaries (Non- guarantors) | Consolidating Adjustments | Total Consolidated | |||||||||||||||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | $ | (14,838 | ) | $ | 86,628 | $ | 39,726 | $ | (162 | ) | $ | 111,354 | |||||||
INVESTING ACTIVITIES | |||||||||||||||||||
Capital expenditures | — | (33,204 | ) | (8,875 | ) | — | (42,079 | ) | |||||||||||
Purchase of timberlands | — | (102 | ) | (8,587 | ) | — | (8,689 | ) | |||||||||||
Jesup mill cellulose specialties expansion | — | (26,026 | ) | — | — | (26,026 | ) | ||||||||||||
Change in restricted cash | — | — | (5,609 | ) | — | (5,609 | ) | ||||||||||||
Other | — | 8,887 | (151 | ) | — | 8,736 | |||||||||||||
CASH USED FOR INVESTING ACTIVITIES | — | (50,445 | ) | (23,222 | ) | — | (73,667 | ) | |||||||||||
FINANCING ACTIVITIES | |||||||||||||||||||
Issuance of debt | 325,000 | — | 15,000 | — | 340,000 | ||||||||||||||
Repayment of debt | (120,000 | ) | (30,000 | ) | (15,000 | ) | — | (165,000 | ) | ||||||||||
Dividends paid | (49,249 | ) | — | — | — | (49,249 | ) | ||||||||||||
Proceeds from the issuance of common shares | 2,061 | — | — | — | 2,061 | ||||||||||||||
Excess tax benefits on stock-based compensation | — | 3,946 | — | — | 3,946 | ||||||||||||||
Debt issuance costs | (3,565 | ) | — | — | — | (3,565 | ) | ||||||||||||
Repurchase of common shares | (7,783 | ) | — | — | — | (7,783 | ) | ||||||||||||
Intercompany distributions | — | 14,838 | (15,000 | ) | 162 | — | |||||||||||||
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 146,464 | (11,216 | ) | (15,000 | ) | 162 | 120,410 | ||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | — | — | (125 | ) | — | (125 | ) | ||||||||||||
CASH AND CASH EQUIVALENTS | |||||||||||||||||||
Change in cash and cash equivalents | 131,626 | 24,967 | 1,379 | — | 157,972 | ||||||||||||||
Balance, beginning of year | — | 58,132 | 20,471 | — | 78,603 | ||||||||||||||
Balance, end of period | $ | 131,626 | $ | 83,099 | $ | 21,850 | $ | — | $ | 236,575 |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2011 | |||||||||||||||||||
Rayonier Inc. (Parent Issuer) | Subsidiary Guarantors | All Other Subsidiaries (Non- guarantors) | Consolidating Adjustments | Total Consolidated | |||||||||||||||
CASH PROVIDED BY OPERATING ACTIVITIES | $ | 46,321 | $ | 73,960 | $ | 41,745 | $ | (46,321 | ) | $ | 115,705 | ||||||||
INVESTING ACTIVITIES | |||||||||||||||||||
Capital expenditures | — | (24,759 | ) | (10,002 | ) | — | (34,761 | ) | |||||||||||
Purchase of timberlands | — | — | (2,942 | ) | — | (2,942 | ) | ||||||||||||
Other | — | 6,107 | 775 | — | 6,882 | ||||||||||||||
CASH USED FOR INVESTING ACTIVITIES | — | (18,652 | ) | (12,169 | ) | — | (30,821 | ) | |||||||||||
FINANCING ACTIVITIES | |||||||||||||||||||
Repayment of debt | — | (75,000 | ) | — | — | (75,000 | ) | ||||||||||||
Dividends paid | (43,894 | ) | — | — | — | (43,894 | ) | ||||||||||||
Proceeds from the issuance of common shares | 5,399 | — | — | — | 5,399 | ||||||||||||||
Excess tax benefits on stock-based compensation | — | 3,970 | — | — | 3,970 | ||||||||||||||
Repurchase of common shares | (7,826 | ) | — | — | — | (7,826 | ) | ||||||||||||
Intercompany distributions | — | (46,321 | ) | — | 46,321 | — | |||||||||||||
CASH USED FOR FINANCING ACTIVITIES | (46,321 | ) | (117,351 | ) | — | 46,321 | (117,351 | ) | |||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | — | — | 116 | — | 116 | ||||||||||||||
CASH AND CASH EQUIVALENTS | |||||||||||||||||||
Change in cash and cash equivalents | — | (62,043 | ) | 29,692 | — | (32,351 | ) | ||||||||||||
Balance, beginning of year | — | 303,746 | 45,717 | — | 349,463 | ||||||||||||||
Balance, end of period | $ | — | $ | 241,703 | $ | 75,409 | $ | — | $ | 317,112 |
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
Three Months Ended March 31, | |||||||
Financial Information (in millions) | 2012 | 2011 | |||||
Sales | |||||||
Forest Resources | |||||||
Atlantic | $ | 15 | $ | 13 | |||
Gulf States | 10 | 8 | |||||
Northern | 24 | 24 | |||||
New Zealand | 3 | 3 | |||||
Total Forest Resources | 52 | 48 | |||||
Real Estate | |||||||
Development | — | — | |||||
Rural | 11 | 12 | |||||
Non-Strategic Timberlands | 1 | 1 | |||||
Total Real Estate | 12 | 13 | |||||
Performance Fibers | |||||||
Cellulose specialties | 212 | 194 | |||||
Absorbent materials | 39 | 57 | |||||
Total Performance Fibers | 251 | 251 | |||||
Wood Products | 19 | 16 | |||||
Other Operations | 22 | 30 | |||||
Total Sales | $ | 356 | $ | 358 | |||
Operating Income (Loss) | |||||||
Forest Resources | $ | 8 | $ | 11 | |||
Real Estate | 6 | 7 | |||||
Performance Fibers | 81 | 76 | |||||
Wood Products | 1 | — | |||||
Other Operations | (1 | ) | 1 | ||||
Corporate and other | (11 | ) | (7 | ) | |||
Operating Income | 84 | 88 | |||||
Interest Expense, Interest Income and Other | (12 | ) | (14 | ) | |||
Income Tax Expense | (19 | ) | (16 | ) | |||
Net Income | $ | 53 | $ | 58 | |||
Diluted Earnings Per Share | $ | 0.42 | $ | 0.47 | |||
Sales (in millions) | 2011 | Changes Attributable to: | 2012 | ||||||||||||
Three months ended March 31, | Price | Volume/ Mix/Other | |||||||||||||
Atlantic | $ | 13 | $ | — | $ | 2 | $ | 15 | |||||||
Gulf States | 8 | (1 | ) | 3 | 10 | ||||||||||
Northern | 24 | — | — | 24 | |||||||||||
New Zealand | 3 | — | — | 3 | |||||||||||
Total Sales | $ | 48 | $ | (1 | ) | $ | 5 | $ | 52 |
Operating Income (in millions) | 2011 | Changes Attributable to: | 2012 | ||||||||||||
Three months ended March 31, | Price | Volume/Mix/Cost | |||||||||||||
Atlantic | $ | 2 | $ | — | $ | 1 | $ | 3 | |||||||
Gulf States | — | (1 | ) | 2 | 1 | ||||||||||
Northern | 8 | — | (4 | ) | 4 | ||||||||||
New Zealand/Other | 1 | — | (1 | ) | — | ||||||||||
Total Operating Income | $ | 11 | $ | (1 | ) | $ | (2 | ) | $ | 8 |
Sales (in millions) | 2011 | Changes Attributable to: | 2012 | ||||||||
Three months ended March 31, | Price/Volume/Mix | ||||||||||
Development | $ | — | $ | — | $ | — | |||||
Rural | 12 | (1 | ) | 11 | |||||||
Non-Strategic Timberlands | 1 | — | 1 | ||||||||
Total Sales | $ | 13 | $ | (1 | ) | $ | 12 |
Operating Income (in millions) | 2011 | Changes Attributable to: | 2012 | ||||||||
Three months ended March 31, | Price/Volume/Mix | ||||||||||
Total Operating Income | $ | 7 | $ | (1 | ) | $ | 6 |
Sales (in millions) | 2011 | Changes Attributable to: | 2012 | ||||||||||||
Three months ended March 31, | Price | Volume/ Mix | |||||||||||||
Cellulose specialties | $ | 194 | $ | 26 | $ | (8 | ) | $ | 212 | ||||||
Absorbent materials | 57 | (8 | ) | (10 | ) | 39 | |||||||||
Total Sales | $ | 251 | $ | 18 | $ | (18 | ) | $ | 251 | ||||||
Operating Income (in millions) | 2011 | Changes Attributable to: | 2012 | ||||||||||||||||
Three months ended March 31, | Price | Volume/ Mix | Cost/Other | ||||||||||||||||
Total Operating Income | $ | 76 | $ | 18 | $ | (5 | ) | $ | (8 | ) | $ | 81 |
Sales (in millions) | 2011 | Changes Attributable to: | 2012 | ||||||||||||
Three months ended March 31, | Price | Volume | |||||||||||||
Total Sales | $ | 16 | $ | (1 | ) | $ | 4 | $ | 19 |
Operating Income (in millions) | 2011 | Changes Attributable to: | 2012 | ||||||||||||
Three months ended March 31, | Price | Volume/Costs | |||||||||||||
Total Operating Income | $ | — | $ | (1 | ) | $ | 2 | $ | 1 |
As of March 31, | As of December 31, | ||||||
2012 | 2011 | ||||||
Cash and cash equivalents (a) | $ | 237 | $ | 79 | |||
Total debt | 1,024 | 847 | |||||
Shareholders’ equity | 1,342 | 1,323 | |||||
Total capitalization (total debt plus equity) | 2,366 | 2,170 | |||||
Debt to capital ratio | 43 | % | 39 | % |
2012 | 2011 | ||||||
Cash provided by (used for): | |||||||
Operating activities | $ | 111 | $ | 116 | |||
Investing activities | (74 | ) | (31 | ) | |||
Financing activities | 120 | (117 | ) |
Three Months Ended March 31, | |||||||
2012 | 2011 | ||||||
Net Income to EBITDA Reconciliation | |||||||
Net Income | $ | 53 | $ | 58 | |||
Income tax expense | 19 | 16 | |||||
Interest, net | 12 | 14 | |||||
Depreciation, depletion and amortization | 31 | 32 | |||||
EBITDA | $ | 115 | $ | 120 |
Three Months Ended March 31, | |||||||
2012 | 2011 | ||||||
EBITDA by Segment | |||||||
Forest Resources | $ | 25 | $ | 26 | |||
Real Estate | 8 | 10 | |||||
Performance Fibers | 92 | 89 | |||||
Wood Products | 2 | 1 | |||||
Other Operations | (1 | ) | 1 | ||||
Corporate and other | (11 | ) | (7 | ) | |||
EBITDA | $ | 115 | $ | 120 |
Forest Resources | Real Estate | Performance Fibers | Wood Products | Other Operations | Corporate and Other | Total | |||||||||||||||||||||
Three Months Ended March 31, 2012 | |||||||||||||||||||||||||||
Operating Income (Loss) | $ | 8 | $ | 6 | $ | 81 | $ | 1 | $ | (1 | ) | $ | (11 | ) | $ | 84 | |||||||||||
Add: Depreciation, depletion and amortization | 17 | 2 | 11 | 1 | — | — | 31 | ||||||||||||||||||||
EBITDA | $ | 25 | $ | 8 | $ | 92 | $ | 2 | $ | (1 | ) | $ | (11 | ) | $ | 115 | |||||||||||
Three Months Ended March 31, 2011 | |||||||||||||||||||||||||||
Operating Income | $ | 11 | $ | 7 | $ | 76 | $ | — | $ | 1 | $ | (7 | ) | $ | 88 | ||||||||||||
Add: Depreciation, depletion and amortization | 15 | 3 | 13 | 1 | — | — | 32 | ||||||||||||||||||||
EBITDA | $ | 26 | $ | 10 | $ | 89 | $ | 1 | $ | 1 | $ | (7 | ) | $ | 120 |
Three Months Ended March 31, | |||||||
2012 | 2011 | ||||||
Cash provided by operating activities | $ | 111 | $ | 116 | |||
Capital expenditures (a) | (42 | ) | (35 | ) | |||
Change in committed cash | 5 | (1 | ) | ||||
Excess tax benefits on stock-based compensation | 4 | 4 | |||||
Other | 9 | 4 | |||||
CAD | 87 | 88 | |||||
Mandatory debt repayments | — | — | |||||
Adjusted CAD | $ | 87 | $ | 88 |
Cash used for investing activities | $ | (74 | ) | $ | (31 | ) | |
Cash provided by (used for) financing activities | $ | 120 | $ | (117 | ) |
Three Months Ended March 31, | |||||
2012 | 2011 | ||||
Forest Resources — in thousands of short green tons | |||||
Atlantic | 737 | 645 | |||
Gulf States | 442 | 346 | |||
Northern | 441 | 436 | |||
Total | 1,620 | 1,427 | |||
Real Estate — in acres | |||||
Development | 20 | 57 | |||
Rural | 5,452 | 5,445 | |||
Non-Strategic Timberlands | 238 | 330 | |||
Total | 5,710 | 5,832 | |||
Performance Fibers | |||||
Sales volume — in thousands of metric tons | |||||
Cellulose specialties | 117 | 122 | |||
Absorbent materials | 51 | 63 | |||
Total | 168 | 185 | |||
Wood Products | |||||
Lumber sales volume — in millions of board feet | 70 | 56 |
Item 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Item 4. | CONTROLS AND PROCEDURES |
Period | Total Number of Shares Purchased (1) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||
January 1 to January 31 | 156,088 | $ | 45.99 | — | 3,765,587 | ||||||||
February 1 to February 29 | — | — | — | 3,765,587 | |||||||||
March 1 to March 31 | 13,669 | $ | 44.19 | — | 3,765,587 | ||||||||
Total | 169,757 | — | 3,765,587 |
(1) | Repurchased to satisfy the minimum tax withholding requirements related to the vesting of performance and restricted shares under the Rayonier Incentive Stock Plan. |
1.1 | Underwriting Agreement, dated February 29, 2012, among Rayonier Inc., the subsidiary guarantors named therein and J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representatives of the several underwriters named therein, relating to the 3.750% Senior Notes due 2022 | Incorporated by reference to Exhibit 1.1 to the Registrant's March 1, 2012 Form 8-K |
3.1 | Amended and Restated Articles of Incorporation | Incorporated by reference to Exhibit 3.1 to the Registrant's May 25, 2010 Form 8-K |
3.2 | Bylaws | Incorporated by reference to Exhibit 3.2 to the Registrant's October 21, 2009 Form 8-K |
4.1 | Indenture, dated March 5, 2012, between Rayonier Inc., as issuer, and The Bank of New York Mellon Trust Company, N.A., as trustee | Incorporated by reference to Exhibit 4.1 to the Registrant's March 5, 2012 Form 8-K |
4.2 | First Supplemental Indenture relating to the 3.750% Senior Notes due 2022, dated March 5, 2012, among Rayonier Inc., as issuer, the subsidiary guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as trustee | Incorporated by reference to Exhibit 4.2 to the Registrant's March 5, 2012 Form 8-K |
4.3 | Form of Note for 3.750% Senior Notes due 2022 (contained in Exhibit A to Exhibit 4.2) | Incorporated by reference to Exhibit 4.2 to the Registrant's March 5, 2012 Form 8-K |
31.1 | Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act | Filed herewith |
31.2 | Certification of the Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act | Filed herewith |
32 | Certification pursuant to Section 906 of the Sarbanes-Oxley Act | Furnished herewith |
101 | The following financial information from our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2012, formatted in Extensible Business Reporting Language ("XBRL"), includes: (i) the Condensed Consolidated Statements of Income and Comprehensive Income for the Three Months Ended March 31, 2012 and 2011; (ii) the Condensed Consolidated Balance Sheets as of March 31, 2012 and December 31, 2011 (iii) the Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2012 and 2011; and (iv) the Notes to Condensed Consolidated Financial Statements | Furnished herewith pursuant to Rule 406T of Regulation S-T |
RAYONIER INC. | ||
(Registrant) | ||
By: | /S/ HANS E. VANDEN NOORT | |
Hans E. Vanden Noort Senior Vice President and Chief Financial Officer (Duly Authorized Officer, Principal Financial Officer and Principal Accounting Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Rayonier Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/S/ PAUL G. BOYNTON | |
Paul G. Boynton President and Chief Executive Officer, Rayonier Inc. |
1. | I have reviewed this quarterly report on Form 10-Q of Rayonier Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ HANS E. VANDEN NOORT | |
Hans E. Vanden Noort Senior Vice President and Chief Financial Officer, Rayonier Inc. |
1. | The quarterly report on Form 10-Q of Rayonier Inc. (the "Company") for the period ended March 31, 2012 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ PAUL G. BOYNTON | /s/ HANS E. VANDEN NOORT | |
Paul G. Boynton | Hans E. Vanden Noort | |
President and Chief Executive Officer, Rayonier Inc. | Senior Vice President and Chief Financial Officer, Rayonier Inc. |
Employee Benefit Plans Net Periodic Benefit Cost (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | |
---|---|---|
Mar. 31, 2012
|
Mar. 31, 2011
|
|
Pension Plans, Defined Benefit [Member]
|
||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 1,940 | $ 1,695 |
Interest cost | 3,989 | 4,522 |
Expected return on plan assets | (5,879) | (6,455) |
Amortization of prior service cost | 302 | 340 |
Amortization of losses | 4,056 | 2,593 |
Net periodic benefit cost | 4,408 | 2,695 |
Other Postretirement Benefit Plans, Defined Benefit [Member]
|
||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 210 | 182 |
Interest cost | 223 | 236 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost | 6 | 22 |
Amortization of losses | 144 | 66 |
Net periodic benefit cost | $ 583 | $ 506 |
Liabilities for Dispositions and Discontinued Operations Narrative (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended |
---|---|
Mar. 31, 2012
|
|
Environmental Remediation Obligations [Abstract] | |
Environmental Applicability, Impact and Conclusion Disclosures | The Company is exposed to the risk of reasonably possible additional losses in excess of the established liabilities. As of March 31, 2012, this amount could range up to $29 million, allocable over several of the applicable sites, and arises from uncertainty over the availability, feasibility or effectiveness of certain remediation technologies, additional or different contamination that may be discovered, development of new or more effective environmental remediation technologies and the exercise of discretion in interpretation of applicable law and regulations by governmental agencies. |
Environmental Contingency, Loss Exposure in Excess of Accrual, High Estimate | $ 29 |
Environmental Loss Contingencies Term | 20 years |
Environmental Exit Costs, Nature of Costs | Remedial actions for these sites vary, but include on-site (and in certain cases off-site) removal or treatment of contaminated soils and sediments, recovery and treatment/remediation of groundwater, and source remediation and/or control. |
Basis Of Presentation (Details)
|
3 Months Ended |
---|---|
Mar. 31, 2012
|
|
Subsequent Events [Abstract] | |
Subsequent Event, Date Evaluated, Description | The Company evaluated events and transactions that occurred after the balance sheet date but before financial statements were issued |
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