Earnings Per Common Share (Notes)

3 Months Ended

Mar. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Common Share [Text Block]

2. EARNINGS PER COMMON SHARE

The impact of the August 24, 2011 three-for-two stock split is reflected for all periods presented in the following table which provides details of the calculations of basic and diluted 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

(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 prices of $41.78 for the Notes due 2012 and $39.85 for the Notes due 2015. For additional information on the potential dilutive impact of the Senior Exchangeable Notes, warrants and exchangeable note hedges, see Note 11 — Debt in the 2011 Annual Report on Form 10-K and Note 13 — Debt of this Form 10-Q.

(b) The higher shares used for determining earnings per common share was primarily due to an increase in the average stock price from $39.71 in first quarter 2011 to $45.07 in first quarter 2012.