10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2013

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission File Number 1-6780

RAYONIER INC.

Incorporated in the State of North Carolina

I.R.S. Employer Identification No. 13-2607329

1301 RIVERPLACE BOULEVARD

JACKSONVILLE, FL 32207

(Principal Executive Office)

Telephone Number: (904) 357-9100

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

YES x        NO  o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

YES x       NO  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  x	Accelerated filer  o
Non-accelerated filer  o	Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES o        NO  x

As of April 18, 2013, there were outstanding 126,025,778 Common Shares of the registrant.

TABLE OF CONTENTS

Item		Page
	PART I - FINANCIAL INFORMATION
1.	Financial Statements (unaudited)	1
	Consolidated Statements of Income and Comprehensive Income for the Three Months Ended March 31, 2013 and 2012	1
	Consolidated Balance Sheets as of March 31, 2013 and December 31, 2012	2
	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2013 and 2012	3
	Notes to Consolidated Financial Statements	4
2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	28
3.	Quantitative and Qualitative Disclosures about Market Risk	37
4.	Controls and Procedures	37
	PART II - OTHER INFORMATION
1.	Legal Proceedings	38
2.	Unregistered Sales of Equity Securities and Use of Proceeds	38
6.	Exhibits	39
	Signature	40

i

PART I.        FINANCIAL INFORMATION

Item 1.         Financial Statements

RAYONIER INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

AND COMPREHENSIVE INCOME

(Unaudited)

(Dollars in thousands, except per share amounts)

	Three Months Ended March 31,
	2013			2012
SALES	$	393,719		$	336,571
Costs and Expenses
Cost of sales	266,018			235,708
Selling and general expenses	16,099			19,265
Other operating income, net	(3,503		)	(1,139		)
	278,614			253,834
Equity in income of New Zealand joint venture	258			13
OPERATING INCOME	115,363			82,750
Interest expense	(7,717		)	(11,825		)
Interest and miscellaneous income (expense), net	57			(23		)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	107,703			70,902
Income tax expense	(4,445		)	(18,303		)
INCOME FROM CONTINUING OPERATIONS	103,258			52,599
DISCONTINUED OPERATIONS, NET (Note 2)
Income from discontinued operations, net of income tax expense of $22,273 and $422	44,477			838
NET INCOME	147,735			53,437
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	975			5,825
New Zealand joint venture cash flow hedges	554			1,205
Gain from pension and postretirement plans, net of income tax expense of $2,204 and $1,368	4,969			3,140
Total other comprehensive income	6,498			10,170
COMPREHENSIVE INCOME	$	154,233		$	63,607
EARNINGS PER COMMON SHARE (Note 3)
BASIC EARNINGS PER SHARE
Continuing Operations	$	0.83		$	0.43
Discontinued Operations	0.36			0.01
Net Income	$	1.19		$	0.44
DILUTED EARNINGS PER SHARE
Continuing Operations	$	0.79		$	0.41
Discontinued Operations	0.34			0.01
Net Income	$	1.13		$	0.42
Dividends per share	$	0.44		$	0.40

See Notes to Consolidated Financial Statements.

1

RAYONIER INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands)

	March 31, 2013			December 31, 2012
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	266,017		$	280,596
Accounts receivable, less allowance for doubtful accounts of $503 and $417	105,693			100,359
Inventory
Finished goods	95,614			103,568
Work in progress	2,404			4,446
Raw materials	13,482			17,602
Manufacturing and maintenance supplies	2,143			2,350
Total inventory	113,643			127,966
Deferred tax assets	66,509			15,845
Prepaid and other current assets	38,896			41,508
Total current assets	590,758			566,274
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	1,565,782			1,573,309
PROPERTY, PLANT AND EQUIPMENT
Land	21,804			27,383
Buildings	134,337			147,445
Machinery and equipment	1,389,212			1,444,012
Construction in progress	327,353			268,459
Total property, plant and equipment, gross	1,872,706			1,887,299
Less — accumulated depreciation	(1,112,468		)	(1,180,261		)
Total property, plant and equipment, net	760,238			707,038
INVESTMENT IN JOINT VENTURE (Note 6)	73,830			72,419
OTHER ASSETS	211,677			203,911
TOTAL ASSETS	$	3,202,285		$	3,122,951
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	108,493		$	70,381
Current maturities of long-term debt	50,000			150,000
Accrued taxes	30,059			13,824
Accrued payroll and benefits	18,471			28,068
Accrued interest	11,200			7,956
Accrued customer incentives	8,936			10,849
Other current liabilities	25,168			18,640
Current liabilities for dispositions and discontinued operations (Note 11)	8,398			8,105
Total current liabilities	260,725			307,823
LONG-TERM DEBT	1,150,471			1,120,052
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS (Note 11)	71,799			73,590
PENSION AND OTHER POSTRETIREMENT BENEFITS (Note 13)	158,829			159,582
OTHER NON-CURRENT LIABILITIES	21,271			23,900
COMMITMENTS AND CONTINGENCIES (Note 10 and 12)
SHAREHOLDERS’ EQUITY
Common Shares, 480,000,000 shares authorized, 125,903,058 and 123,332,444 shares issued and outstanding	673,098			670,749
Retained earnings	968,973			876,634
Accumulated other comprehensive loss	(102,881		)	(109,379		)
TOTAL SHAREHOLDERS' EQUITY	1,539,190			1,438,004
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	3,202,285		$	3,122,951

See Notes to Consolidated Financial Statements.

2

RAYONIER INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Dollars in thousands)

	Three Months Ended March 31,
	2013			2012
OPERATING ACTIVITIES
Net income	$	147,735		$	53,437
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, depletion and amortization	35,992			30,413
Non-cash cost of real estate sold	633			1,382
Stock-based incentive compensation expense	3,280			6,466
Amortization of debt discount/premium	419			1,890
Tax benefit of AFMC for CBPC exchange	(18,761		)	—
Amortization of losses from pension and postretirement plans	6,279			4,508
Gain on sale of discontinued operations, net	(42,670		)	—
Gain on foreign currency forward contracts	(1,881		)	—
Other	(3,243		)	1,874
Changes in operating assets and liabilities:
Receivables	(8,778		)	(1,911		)
Inventories	11,197			17,035
Accounts payable	15,386			3,978
Income tax receivable/payable	15,915			11,469
All other operating activities	99			(17,476		)
Payment to exchange AFMC for CBPC	(70,311		)	—
Expenditures for dispositions and discontinued operations	(1,631		)	(1,711		)
CASH PROVIDED BY OPERATING ACTIVITIES	89,660			111,354
INVESTING ACTIVITIES
Capital expenditures	(32,664		)	(42,079		)
Purchase of timberlands	(1,560		)	(8,689		)
Jesup mill cellulose specialties expansion (gross purchases of $57,693 and $41,051, net of purchases on account of $20,959 and $15,025)	(36,734		)	(26,026		)
Proceeds from disposition of Wood Products business	83,741			—
Change in restricted cash	9,908			(5,609		)
Other	1,790			8,736
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	24,481			(73,667		)
FINANCING ACTIVITIES
Issuance of debt	100,000			340,000
Repayment of debt	(170,000		)	(165,000		)
Dividends paid	(57,744		)	(49,249		)
Proceeds from the issuance of common shares	4,091			2,061
Excess tax benefits on stock-based compensation	6,191			3,946
Debt issuance costs	—			(3,565		)
Repurchase of common shares	(11,241		)	(7,783		)
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES	(128,703		)	120,410
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(17		)	(125		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(14,579		)	157,972
Balance, beginning of year	280,596			78,603
Balance, end of period	$	266,017		$	236,575
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period:
Interest	$	3,562		$	5,213
Income taxes	$	70,403		$	325
Non-cash investing activity:
Capital assets purchased on account	$	49,094		$	44,576

See Notes to Consolidated Financial Statements.

3

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

1. BASIS OF PRESENTATION

Basis of Presentation

The unaudited consolidated financial statements and notes thereto of Rayonier Inc. and its subsidiaries ("Rayonier" or the "Company") have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). In the opinion of management, these financial statements and notes reflect all adjustments (all of which are normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. These statements and notes should be read in conjunction with the financial statements and supplementary data included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the SEC.

Reclassifications

Certain 2012 amounts have been reclassified to agree with the current year presentation. See Note 2 — Sale of Wood Products Business for information regarding reclassifications for discontinued operations.

New Accounting Standards

In February 2013, the Financial Accounting Standards Board issued Accounting Standards Update No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This standard requires reporting, in one place, information about reclassifications out of AOCI by component. An entity is required to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of AOCI by the respective line items of net income, but only if the amount is reclassified in its entirety in the same reporting period. For amounts that are not required to be reclassified to net income in their entirety, an entity is required to cross-reference to other currently required disclosures that provide additional detail about those amounts. The information required by this standard must be presented in one place, either parenthetically on the face of the financial statements by income statement line item or in a note. See Note 15 — Accumulated Other Comprehensive Loss for our disclosures required under this guidance.

Subsequent Events

The Company evaluated events and transactions that occurred after the balance sheet date but before financial statements were issued, and one subsequent event was identified that warranted disclosure. See Note 6 — Joint Venture Investment for additional information.

2. SALE OF WOOD PRODUCTS BUSINESS

On March 1, 2013, Rayonier completed the previously announced sale of its Wood Products business (consisting of three lumber mills in Baxley, Swainsboro and Eatonton, Georgia) to International Forest Products Limited (“Interfor”) for $80 million plus a working capital adjustment. The sale is consistent with the Company's strategic plan to fully position its manufacturing operations in the specialty chemicals sector. Rayonier will not have significant continuing involvement in the operations of the Wood Products business. Accordingly, the operating results of the Wood Products business, formerly reported as a separate operating segment, are classified as discontinued operations in the Company's Consolidated Statements of Income and Comprehensive Income for all periods presented. Certain administrative and general costs historically allocated to the Wood Products segment, which will remain with the Company after the sale, are reported in continuing operations.

Rayonier recognized an after-tax gain of $42.7 million on the sale. The gain is included in "Income from discontinued operations, net" on the Consolidated Statements of Income and Comprehensive Income for the period ended March 31, 2013.

4

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

The following table summarizes the operating results of the Company's discontinued operations and the related gain for the periods ended March 31, 2013 and 2012, as presented in "Income from discontinued operations, net" in the Consolidated Statements of Income and Comprehensive Income:

	Three Months Ended March 31,
	2013			2012
Sales	$	16,968		$	19,209
Cost of sales and other	(14,258		)	(17,949		)
Gain on sale of discontinued operations	64,040			—
Income from discontinued operations before income taxes	66,750			1,260
Income tax expense	(22,273		)	(422		)
Income from discontinued operations, net	$	44,477		$	838

The sale did not meet the "held for sale" criteria prior to the period it was completed. The major classes of Wood Products assets and liabilities included in the sale are as follows:

	March 1, 2013
Accounts receivable, net	$	4,127
Inventory	4,270
Prepaid and other current assets	2,053
Property, plant and equipment, net	9,990
Total assets	$	20,440
Total liabilities	$	596

Cash flows from discontinued operations are immaterial both individually and in the aggregate. As such, they are included with cash flows from continuing operations in the Consolidated Statements of Cash Flows.

Pursuant to the purchase and sale agreement, Rayonier will provide Interfor with saw timber procurement services for the three lumber mills through December 31, 2013. Rayonier also contracted with Interfor to purchase wood chips produced at the lumber mills for use at Rayonier's Jesup pulp mill and market other wood chips produced by the mills to third parties on Interfor's behalf. The Company will purchase 100 percent of the Baxley mill chips for five years and 25 percent of the Swainsboro mill chips through the end of 2013. The purchase price of these chips will be based on the average price paid by the Company to unrelated third parties. Prior to the Wood Products sale, saw timber procurement services for and wood chip purchases from the lumber mills were intercompany transactions eliminated in consolidation as follows:

	Three Months Ended March 31,
	2013		2012
Wood chip purchases	$	1,650	$	3,234
Saw timber procurement services	223		287
Total intercompany	$	1,873	$	3,521

5

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

3. EARNINGS PER COMMON SHARE

The following table provides details of the calculations of basic and diluted earnings per common share:

	Three Months Ended March 31,
	2013		2012
Income from continuing operations	$	103,258	$	52,599
Income from discontinued operations	44,477		838
Net income	$	147,735	$	53,437
Shares used for determining basic earnings per common share	124,479,865		122,352,435
Dilutive effect of:
Stock options	533,031		719,166
Performance and restricted shares	448,440		651,729
Assumed conversion of Senior Exchangeable Notes (a)	2,115,959		2,967,187
Assumed conversion of warrants (a) (b)	2,859,593		1,241,612
Shares used for determining diluted earnings per common share	130,436,888		127,932,129
Basic earnings per common share:
Continuing operations	$	0.83	$	0.43
Discontinued operations	0.36		0.01
Net income	$	1.19	$	0.44
Diluted earnings per common share:
Continuing operations	$	0.79	$	0.41
Discontinued operations	0.34		0.01
Net income	$	1.13	$	0.42

	Three Months Ended March 31,
	2013	2012
Anti-dilutive shares excluded from the computations of diluted earnings per share:
Stock options, performance and restricted shares	220,701	445,859
Assumed conversion of exchangeable note hedges (a)	2,115,959	2,967,187
Total	2,336,660	3,413,046

(a) The Senior Exchangeable Notes due 2012 (the "2012 Notes") matured in October 2012; however, no additional shares were issued due to offsetting exchangeable note hedges. Similarly, Rayonier will not issue additional shares upon maturity of the Senior Exchangeable Notes due 2015 (the "2015 Notes") due to offsetting hedges. 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 is excluded since they are anti-dilutive. As such, the dilutive effect of the assumed conversion of the 2012 Notes was only included for the three months ended March 31, 2012, while the effect of the 2015 Notes was included for both periods presented.

The warrants sold in conjunction with the Notes due 2012 began maturing on January 15, 2013 and matured ratably through March 27, 2013. As a result, 2,036,976 shares were issued through the end of the first quarter and 97,918 shares issued in the first week of April. The dilutive impact of these warrants was calculated based on the amount of time they were outstanding before settlement during the first quarter. Rayonier will distribute additional shares upon maturity of the warrants for the Notes due 2015 if the stock price exceeds $39.43 per share. For additional information on the potential dilutive impact of the Senior Exchangeable Notes, warrants and exchangeable note hedges, see Note 11 — Debt in the 2012 Annual Report on Form 10-K and Note 14 — Debtof this Form 10-Q.

(b) The higher shares used for the assumed conversion of the warrants were primarily due to an increase in the average stock price from $45.07 in first quarter 2012 to $55.47 in first quarter 2013.

6

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

4. INCOME TAXES

Rayonier is a real estate investment trust ("REIT"). In general, only its taxable REIT subsidiaries, whose businesses include the Company's non-REIT qualified activities, are subject to corporate income taxes. However, the Company was subject to U.S. federal corporate income tax on built-in gains (the excess of fair market value over tax basis for property held upon REIT election at January 1, 2004) on taxable sales of such property during calendar years 2004 through 2010. In 2011, the law provided a built-in-gains tax holiday. In 2013, the law provided a built-in gains tax holiday for 2012 (retroactive) and 2013 which will impact the Company's 2013 provision. Accordingly, the provision for corporate income taxes relates principally to current and deferred taxes on taxable REIT subsidiaries' income and certain property sales.

Alternative Fuel Mixture Credit ("AFMC") and Cellulosic Biofuel Producer Credit ("CBPC")

The U.S. Internal Revenue Code allowed two credits for taxpayers that produced and used an alternative fuel in the operation of their business through December 31, 2009. The AFMC is a $.50 per gallon refundable tax credit (which is not taxable), while the CBPC is a $1.01 per gallon credit that is nonrefundable, taxable and has limitations based on an entity's tax liability. Rayonier produces and uses an alternative fuel ("black liquor") at its Jesup, Georgia and Fernandina Beach, Florida performance fibers mills, which qualified for both credits. The Company claimed the AFMC on its 2009 tax return.

In the first quarter of 2013, management approved a $70 million tax payment to exchange approximately 120 million gallons of black liquor previously claimed for the AFMC for the CBPC. As a result, the Company recorded a $19 million discrete tax benefit in the current period reflecting reduced future tax payments of $89 million, including approximately $60 million realized during the remainder of 2013 and $29 million in the first half of 2014. There was no exchange of AFMC for CBPC in first quarter 2012. For additional information on the AFMC and CBPC, see Note 8 — Income Taxes in the Company's Annual Report on Form 10-K for the year ended December 31, 2012.

Provision for Income Taxes from Continuing Operations

The Company's effective tax rate is below the 35 percent U.S. statutory tax rate primarily due to tax benefits associated with being a REIT. The Company's effective tax rate in 2013 was lower than 2012 primarily due to recording the AFMC exchange and the federal research and experimentation tax credit (which was retroactively enacted in 2013).

The table below reconciles the U.S. statutory rate to the Company's effective tax rate for each period presented (in millions of dollars).

	Three Months Ended March 31,
	2013					2012
Income tax expense at federal statutory rate	$	38		35.0	%	$	25		35.0	%
REIT income not subject to tax	(11		)	(10.1	)%	(5		)	(7.7	)%
Other	(2		)	(1.5	)%	(1		)	(0.8	)%
Income tax expense before discrete items	25			23.4	%	19			26.5	%
Exchange of AFMC for CBPC	(19		)	(17.5	)%	—			—	%
Other	(2		)	(1.8	)%	(1		)	(0.7	)%
Income tax expense as reported	$	4		4.1	%	$	18		25.8	%

Provision for Income Taxes from Discontinued Operations

In the first quarter, Rayonier completed the sale of its Wood Products business for $80 million plus a working capital adjustment . For the three months ended March 31, 2013 and 2012, income tax expense related to discontinued operations was $22.3 million ($21.4 million from the gain on sale) and $0.4 million, respectively. See Note 2 — Sale of Wood Products Business for additional information.

7

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

5. RESTRICTED DEPOSITS

In order to qualify for like-kind exchange ("LKE") treatment, the proceeds from real estate sales must be deposited with a third-party intermediary. These proceeds are accounted for as restricted cash until a suitable replacement property is acquired. In the event LKE purchases are not completed, the proceeds are returned to the Company after 180 days and reclassified as available cash. As of March 31, 2013 and December 31, 2012, the Company had $0.7 million and $10.6 million, respectively, of proceeds from real estate sales classified as restricted cash in Other Assets, which were deposited with an LKE intermediary.

6. JOINT VENTURE INVESTMENT

At March 31, 2013, the Company held a 26 percent interest in Matariki Forestry Group ("Matariki"), a joint venture ("JV") that owns or leases approximately 0.3 million acres of New Zealand timberlands. In addition to the investment, Rayonier New Zealand Limited ("RNZ"), a wholly-owned subsidiary of Rayonier Inc., serves as the manager of the JV forests and operates a log trading business.

Rayonier’s investment in the JV is accounted for using the equity method of accounting. Income from the JV is reported in the Forest Resources segment as operating income since the Company manages the forests and its JV interest is an extension of the Company’s operations. A portion of Rayonier’s equity method investment is recorded at historical cost which generates a difference between the book value of the Company’s investment and its proportionate share of the JV’s net assets. The difference represents the Company’s unrecognized gain from RNZ’s sale of timberlands to the JV in 2005. The deferred gain is recognized on a straight-line basis over the estimated number of years the JV expects to harvest the timberlands.

Subsequent Event

In April 2013, Rayonier acquired an additional 39 percent ownership interest in the Matariki JV for approximately $140 million. As a 65 percent owner, the Company will be required to consolidate 100 percent of the JV's assets, liabilities and results of operations and record the non-controlling partner's 35 percent interest beginning in the second quarter of 2013.

8

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

7. SHAREHOLDERS’ EQUITY

An analysis of shareholders’ equity for the three months ended March 31, 2013 and the year ended December 31, 2012 is shown below (share amounts not in thousands):

	Common Shares					Retained Earnings			Accumulated Other Comprehensive Income/(Loss)			Shareholders’ Equity
	Shares		Amount
Balance, December 31, 2011	122,035,177		$	630,286		$	806,235		$	(113,448	)	$	1,323,073
Net income	—		—			278,685			—			278,685
Dividends ($1.68 per share)	—		—			(208,286		)	—			(208,286		)
Issuance of shares under incentive stock plans	1,467,024		25,495			—			—			25,495
Stock-based compensation	—		15,116			—			—			15,116
Excess tax benefit on stock-based compensation	—		7,635			—			—			7,635
Repurchase of common shares	(169,757	)	(7,783		)	—			—			(7,783		)
Net loss from pension and postretirement plans	—		—			—			(496		)	(496		)
Foreign currency translation adjustment	—		—			—			4,352			4,352
Joint venture cash flow hedges	—		—			—			213			213
Balance, December 31, 2012	123,332,444		$	670,749		$	876,634		$	(109,379	)	$	1,438,004
Net income	—		—			147,735			—			147,735
Dividends ($0.44 per share)	—		—			(55,396		)	—			(55,396		)
Issuance of shares under incentive stock plans	743,381		4,091			—			—			4,091
Stock-based compensation	—		3,308			—			—			3,308
Excess tax benefit on stock-based compensation	—		6,191			—			—			6,191
Repurchase of common shares	(209,743	)	(11,241		)	—			—			(11,241		)
Maturity of warrants (Note 14)	2,036,976		—			—			—			—
Gain from pension and postretirement plans	—		—			—			4,969			4,969
Foreign currency translation adjustment	—		—			—			975			975
Joint venture cash flow hedges	—		—			—			554			554
Balance, March 31, 2013	125,903,058		$	673,098		$	968,973		$	(102,881	)	$	1,539,190

9

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

8. SEGMENT AND GEOGRAPHICAL INFORMATION

Rayonier operates in three reportable business segments: Forest Resources, Real Estate and Performance Fibers. Prior to the first quarter of 2013, the Company operated in four reportable business segments, which included Wood Products. In March 2013, the Company sold its Wood Products business and its operations are shown as discontinued operations for all periods presented. See Note 2 — Sale of Wood Products Business for additional information.

Forest Resources sales include all activities related to the harvesting of timber. Real Estate sales include all property sales, including those designated for higher and better use ("HBU"). The assets of the Real Estate segment include HBU property held by the Company’s real estate subsidiary, TerraPointe LLC. The Performance Fibers segment includes two major product lines, cellulose specialties and absorbent materials. The Company’s remaining operations include harvesting and selling timber acquired from third parties (log trading). These operations are reported in "Other Operations." Sales between operating segments are made based on estimated fair market value, and intercompany sales, purchases and profits (losses) are eliminated in consolidation. The Company evaluates financial performance based on the operating income of the segments.

Operating income (loss) as presented in the Consolidated Statements of Income and Comprehensive Income is equal to segment income (loss). Certain income (loss) items in the Consolidated Statements of Income and Comprehensive Income are not allocated to segments. These items, which include gains (losses) from certain asset dispositions, interest income (expense), miscellaneous income (expense) and income tax (expense) benefit, are not considered by management to be part of segment operations.

Total assets, sales, operating income (loss) and depreciation, depletion and amortization by segment including Corporate were as follows:

	March 31,		December 31,
ASSETS	2013		2012
Forest Resources	$	1,722,413	$	1,690,030
Real Estate	102,374		112,647
Performance Fibers	973,786		902,309
Wood Products (a)	—		18,454
Other Operations	31,238		23,296
Corporate and other	372,474		376,215
Total	$	3,202,285	$	3,122,951

(a) The Company sold its Wood Products segment during the first quarter of 2013. See Note 2 — Sale of Wood Products Business for additional information.

	Three Months Ended March 31,
SALES	2013			2012
Forest Resources	$	57,102		$	52,195
Real Estate	24,297			12,647
Performance Fibers	284,188			250,855
Other Operations	28,227			21,140
Intersegment Eliminations (b)	(95		)	(266		)
Total	$	393,719		$	336,571

(b) Intersegment eliminations primarily reflect sales from our Forest Resources segment to our Performance Fibers segment.

10

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

	Three Months Ended March 31,
OPERATING INCOME(LOSS)	2013			2012
Forest Resources	$	13,255		$	8,005
Real Estate	16,842			6,478
Performance Fibers	91,670			80,630
Other Operations	165			(931		)
Corporate and other	(6,569		)	(11,432		)
Total	$	115,363		$	82,750

	Three Months Ended March 31,
DEPRECIATION, DEPLETION AND AMORTIZATION	2013		2012
Forest Resources	$	16,444	$	16,833
Real Estate	4,177		1,845
Performance Fibers	15,153		11,361
Corporate and other	218		374
Total	$	35,992	$	30,413

9. FAIR VALUE MEASUREMENTS

A three-level hierarchy that prioritizes the inputs used to measure fair value was established in the Accounting Standards Codification as follows:

Level 1 — Quoted prices in active markets for identical assets or liabilities.

Level 2 —Observable inputs other than quoted prices included in Level 1.

Level 3 —Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Foreign Currency Forward Contracts

As of March 31, 2013 and 2012, the impact of the Company's derivative instruments and their location within the Consolidated Statements of Income and Comprehensive Income was as follows:

		March 31, 2013				March 31, 2012
	Location of Gain Recognized in Income	Carrying Amount		Fair Value (Level 1)		Carrying Amount	Fair Value (Level 1)
Foreign Currency Forward Contracts (a)	Other Operating Income, net	$	1,881	$	1,881	—	—

(a) Foreign currency forward contracts are recorded in "Other Current Assets."

The Company entered into foreign currency forward contracts to hedge the exchange rate risk between the US dollar and the New Zealand dollar in connection with the Company's purchase of an additional 39 percent interest in the JV. The foreign currency forward contracts were settled in April 2013. See Note 6 — Joint Venture Investment for additional information on the purchase.

11

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

Fair Value of Financial Instruments

The following table presents the carrying amount, estimated fair values and categorization under the fair value hierarchy of financial instruments held by the Company at March 31, 2013 and December 31, 2012, using market information and what management believes to be appropriate valuation methodologies under generally accepted accounting principles:

	March 31, 2013								December 31, 2012
Asset (liability)	Carrying Amount			Fair Value					Carrying Amount			Fair Value
				Level 1		Level 2						Level 1		Level 2
Cash and cash equivalents	$	266,017		$	266,017	$	—		$	280,596		$	280,596	$	—
Restricted cash (a)	651			651		—			10,559			10,559		—
Current maturities of long-term debt	(50,000		)	—		(50,000		)	(150,000		)	—		(150,000		)
Long-term debt	(1,150,471		)	—		(1,307,144		)	(1,120,052		)	—		(1,250,341		)

(a) Restricted cash is recorded in "Other Assets" and represents the proceeds from LKE sales deposited with a third-party intermediary.

Rayonier uses the following methods and assumptions in estimating the fair value of its financial instruments:

Cash and cash equivalents and Restricted cash — The carrying amount is equal to fair market value.

Debt — The fair value of fixed rate debt is based upon quoted market prices for debt with similar terms and maturities.

Variable Interest Entity

Rayonier holds a variable interest in a bankruptcy-remote, limited liability subsidiary ("special-purpose entity") which was created in 2004 when Rayonier monetized a $25.0 million installment note and letter of credit received in connection with a timberland sale. The Company contributed the note and a letter of credit to the special-purpose entity and using the installment note and letter of credit as collateral, the special-purpose entity issued $22.6 million of 15-year Senior Secured Notes and remitted cash of $22.6 million to the Company. There are no restrictions related to the transferred financial assets. Rayonier maintains a $2.6 million interest in the entity and receives immaterial cash payments equal to the excess of interest received on the installment note over the interest paid on the Senior Secured Notes. The Company's interest is recorded at fair value and is included in "Other Assets" in the Consolidated Balance Sheets.

In addition, the Company calculated and recorded a de minimus guarantee liability to reflect its obligation of up to $2.3 million under a make-whole agreement pursuant to which it guaranteed certain obligations of the entity. This guarantee obligation is also collateralized by the letter of credit. The Company's interest in the entity, together with the make-whole agreement, represents the maximum exposure to loss as a result of the Company's involvement with the special-purpose entity. Upon maturity of the Senior Secured Notes in 2019 and termination of the special-purpose entity, Rayonier will receive the remaining $2.6 million of cash. The Company determined, based upon an analysis under the variable interest entity guidance, that it does not have the power to direct activities that most significantly impact the entity's economic success. Therefore, Rayonier is not the primary beneficiary and is not required to consolidate the entity.

Assets measured at fair value on a recurring basis are summarized below:

Asset	Carrying Value at March 31, 2013		Level 2		Carrying Value at December 31, 2012		Level 2
Investment in special-purpose entity	$	2,666	$	2,666	$	2,671	$	2,671

The fair value of the investment in the special-purpose entity is determined by summing the discounted value of future principal and interest payments Rayonier will receive from the special-purpose entity. The interest rate of a similar instrument is used to determine the discounted value of the payments.

12

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

10. GUARANTEES

The Company provides financial guarantees as required by creditors, insurance programs, and state and foreign governmental agencies. As of March 31, 2013, the following financial guarantees were outstanding:

Financial Commitments	Maximum Potential Payment		Carrying Amount of Liability
Standby letters of credit (a)	$	18,205	$	15,000
Guarantees (b)	2,254		43
Surety bonds (c)	7,231		1,388
Total financial commitments	$	27,690	$	16,431

(a) Approximately $15 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 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 $2.3 million of obligations of a special-purpose entity that was established to complete the monetization. At March 31, 2013, 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 2013 and 2014 and are expected to be renewed as required.

11. LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS

An analysis of the liabilities for dispositions and discontinued operations follows:

	March 31,			December 31,
	2013			2012
Balance, beginning of period	$	81,695		$	90,824
Expenditures charged to liabilities	(1,631		)	(9,926		)
Increase to liabilities	133			797
Balance, end of period	80,197			81,695
Less: Current portion	(8,398		)	(8,105		)
Non-current portion	$	71,799		$	73,590

The Company is exposed to the risk of reasonably possible additional losses in excess of the established liabilities. As of March 31, 2013, 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.

The Company believes established liabilities are sufficient for probable costs expected to be incurred over the next 20 years with respect to its dispositions and discontinued operations. 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.

12. CONTINGENCIES

Rayonier is engaged in various legal actions, including certain environmental proceedings, and has been named as a defendant in various other lawsuits and claims arising in the normal course of business. While the Company has procured reasonable and customary insurance covering risks normally occurring in connection with its businesses, it has in certain cases retained some risk through the operation of self-insurance, primarily in the areas of workers’ compensation, property insurance and general liability. These other lawsuits and claims, either individually or in the aggregate, are not expected to have a material adverse effect on the Company’s financial position, results of operations, or cash flow.

13

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

13. 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. Currently, all qualified 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.

The net pension and postretirement benefit costs that have been recognized during the stated periods are shown in the following tables:

	Pension						Postretirement
	Three Months Ended March 31,						Three Months Ended March 31,
	2013			2012			2013		2012
Components of Net Periodic Benefit Cost
Service cost	$	2,419		$	1,940		$	249	$	210
Interest cost	4,834			3,989			240		223
Expected return on plan assets	(7,424		)	(5,879		)	—		—
Amortization of prior service cost	388			302			6		6
Amortization of losses	5,727			4,056			218		144
Net periodic benefit cost	$	5,944		$	4,408		$	713	$	583

In 2013, the Company has no mandatory pension contribution requirements, but may make discretionary contributions.

14. DEBT

The warrants sold in conjunction with the issuance of the 3.75% Senior Exchangeable Notes due 2012 began maturing on January 15, 2013 and continued to mature through March 27, 2013. As of March 31, 2013, 7,984,078 of the 8,313,511 warrants have settled, resulting in the issuance of 2,036,976 Rayonier common shares. The remaining warrants settled through April 2, 2013 and an additional 97,918 common shares were issued.

As of December 31, 2012, the $172.5 million4.50% Senior Exchangeable Notes due 2015 became exchangeable at the option of the holders for the calendar quarter ending March 31, 2013. Per the indenture, in order for the notes to become exchangeable, the Company's stock price must exceed 130 percent of the exchange price for 20 trading days during a period of 30 consecutive trading days as of the last day of the quarter. During the quarter ended March 31, 2013, the note holders did not elect to exercise the exchange option. Based upon the average stock price for the 30 trading days ended March 31, 2013, these notes again became exchangeable at the option of the holder for the calendar quarter ending June 30, 2013. The entire balance of the notes remained classified as long-term debt at March 31, 2013 due to the ability and intent of the Company to refinance them on a long-term basis.

During first quarter 2013, the Company made net repayments of $70 million on its $450 million unsecured revolving credit facility. The Company had $242 million of available borrowings under this facility at March 31, 2013.

There were no other significant changes to the Company's outstanding debt as reported in Note 11 — Debt of the Company's 2012 Annual Report on Form 10-K.

14

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

15. ACCUMULATED OTHER COMPREHENSIVE LOSS

Accumulated Other Comprehensive Loss was comprised of the following:

	Foreign currency translation gains		New Zealand joint venture cash flow hedges (a)			Unrecognized components of employee benefit plans, net of tax (b)			Total
Balance as of December 31, 2012	$	38,829	$	(3,628	)	$	(144,580	)	$	(109,379	)
Other comprehensive income before reclassifications	975		554			530			2,059
Amounts reclassified from accumulated other comprehensive income	—		—			4,439			4,439
Net other comprehensive income	975		554			4,969			6,498
Ending balance	$	39,804	$	(3,074	)	$	(139,611	)	$	(102,881	)

(a) Rayonier records its proportionate share of the JV’s cash flow hedges as increases or decreases to "Investment in Joint Venture" with corresponding adjustments to "Accumulated other comprehensive loss" in the Company’s Consolidated Balance Sheets.

(b) See Note 13 — Employee Benefit Plans for additional information.

16. OTHER OPERATING INCOME (EXPENSE), NET

Other operating income (expense), net was comprised of the following:

	Three Months Ended March 31,
	2013			2012
Lease income, primarily from hunting leases	$	2,462		$	2,385
Other non-timber income	474			842
Foreign currency loss	(184		)	(865		)
Loss on sale or disposal of property, plant & equipment	(429		)	(1,021		)
Gain on foreign currency forward contracts	1,881			—
Miscellaneous expense, net	(701		)	(202		)
Total	$	3,503		$	1,139

15

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

17. CONSOLIDATING FINANCIAL STATEMENTS

The condensed consolidating financial information below follows the same accounting policies as described in the consolidated financial statements, except for the use of the equity method of accounting to reflect ownership interests in wholly-owned subsidiaries, which are eliminated upon consolidation, and the allocation of certain expenses of Rayonier Inc. incurred for the benefit of its subsidiaries.

In August 2009 TRS issued $172.5 million of 4.50% Senior Exchangeable Notes due 2015. The notes are guaranteed by Rayonier Inc. as the Parent Guarantor and Rayonier Operating Company LLC ("ROC") as the Subsidiary Guarantor. In connection with these exchangeable notes, the Company provides the following condensed consolidating financial information in accordance with SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME  AND COMPREHENSIVE INCOME For the Three Months Ended March 31, 2013
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	—		$	393,719		$	—		$	393,719
Costs and Expenses
Cost of sales	—			—			—			266,018			—			266,018
Selling and general expenses	—			2,401			—			13,698			—			16,099
Other operating (income) expense, net	(1,881		)	523			—			(2,145		)	—			(3,503		)
	(1,881		)	2,924			—			277,571			—			278,614
Equity in income of New Zealand joint venture	—			—			—			258			—			258
OPERATING INCOME (LOSS)	1,881			(2,924		)	—			116,406			—			115,363
Interest (expense) income	(3,275		)	(252		)	(6,618		)	2,428			—			(7,717		)
Interest and miscellaneous income (expense), net	2,419			529			(751		)	(2,140		)	—			57
Equity in income from subsidiaries	146,710			148,765			123,469			—			(418,944		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	147,735			146,118			116,100			116,694			(418,944		)	107,703
Income tax benefit (expense)	—			592			2,690			(7,727		)	—			(4,445		)
INCOME FROM CONTINUING OPERATIONS	147,735			146,710			118,790			108,967			(418,944		)	103,258
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income taxes	—			—			—			44,477			—			44,477
NET INCOME	147,735			146,710			118,790			153,444			(418,944		)	147,735
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	975			975			240			975			(2,190		)	975
New Zealand joint venture cash flow hedges	554			554			—			554			(1,108		)	554
Gain from pension and postretirement plans, net of income tax	4,969			4,969			4,012			—			(8,981		)	4,969
Total other comprehensive income	6,498			6,498			4,252			1,529			(12,279		)	6,498
COMPREHENSIVE INCOME	$	154,233		$	153,208		$	123,042		$	154,973		$	(431,223	)	$	154,233

16

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended March 31, 2012
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	—		$	336,571		$	—		$	336,571
Costs and Expenses
Cost of sales	—			—			—			235,708			—			235,708
Selling and general expenses	—			3,311			—			15,954			—			19,265
Other operating expense (income), net	—			121			—			(1,260		)	—			(1,139		)
	—			3,432			—			250,402			—			253,834
Equity in income of New Zealand joint venture	—			—			—			13			—			13
OPERATING (LOSS) INCOME	—			(3,432		)	—			86,182			—			82,750
Interest expense	(1,249		)	(238		)	(10,226		)	(112		)	—			(11,825		)
Interest and miscellaneous income (expense), net	1,912			1,327			(1,208		)	(2,054		)	—			(23		)
Equity in income from subsidiaries	52,774			55,446			45,745			—			(153,965		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	53,437			53,103			34,311			84,016			(153,965		)	70,902
Income tax (expense) benefit	—			(329		)	4,174			(22,148		)	—			(18,303		)
INCOME FROM CONTINUING OPERATIONS	53,437			52,774			38,485			61,868			(153,965		)	52,599
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income tax	—			—			—			838			—			838
NET INCOME	53,437			52,774			38,485			62,706			(153,965		)	53,437
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	5,825			5,825			(102		)	5,825			(11,548		)	5,825
New Zealand joint venture cash flow hedges	1,205			1,205			—			1,205			(2,410		)	1,205
Gain from pension and postretirement plans, net of income tax	3,140			3,140			2,380			2,380			(7,900		)	3,140
Total other comprehensive income	10,170			10,170			2,278			9,410			(21,858		)	10,170
COMPREHENSIVE INCOME	$	63,607		$	62,944		$	40,763		$	72,116		$	(175,823	)	$	63,607

17

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

	CONDENSED CONSOLIDATING BALANCE SHEETS As of March 31, 2013
	Rayonier Inc. (Parent Guarantor)		ROC (Subsidiary Guarantor)		Rayonier TRS Holdings Inc. (Issuer)		Non- guarantors		Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	151,978	$	20,930	$	31,749	$	61,360	$	—		$	266,017
Accounts receivable, less allowance for doubtful accounts	27		7		478		105,181		—			105,693
Inventory	—		—		—		113,643		—			113,643
Deferred tax assets	—		—		—		66,509		—			66,509
Prepaid and other current assets	—		3,618		629		34,649		—			38,896
Total current assets	152,005		24,555		32,856		381,342		—			590,758
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		—		1,565,782		—			1,565,782
NET PROPERTY, PLANT AND EQUIPMENT	—		2,315		—		757,923		—			760,238
INVESTMENT IN JOINT VENTURE	—		—		—		73,830		—			73,830
INVESTMENT IN SUBSIDIARIES	1,599,115		1,827,667		1,486,647		—		(4,913,429		)	—
INTERCOMPANY NOTES RECEIVABLE	215,140		—		20,021		—		(235,161		)	—
OTHER ASSETS	4,042		28,086		4,826		174,723		—			211,677
TOTAL ASSETS	$	1,970,302	$	1,882,623	$	1,544,350	$	2,953,600	$	(5,148,590	)	$	3,202,285
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	1,463	$	222	$	106,808	$	—		$	108,493
Current maturities of long-term debt	50,000		—		—		—		—			50,000
Accrued taxes	—		14		—		30,045		—			30,059
Accrued payroll and benefits	—		8,578		—		9,893		—			18,471
Accrued interest	6,112		484		3,695		909		—			11,200
Accrued customer incentives	—		—		—		8,936		—			8,936
Other current liabilities	—		3,245		—		21,923		—			25,168
Current liabilities for dispositions and discontinued operations	—		—		—		8,398		—			8,398
Total current liabilities	56,112		13,784		3,917		186,912		—			260,725
LONG-TERM DEBT	375,000		—		698,916		76,555		—			1,150,471
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		—		71,799		—			71,799
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		129,743		—		29,086		—			158,829
OTHER NON-CURRENT LIABILITIES	—		14,007		—		7,264		—			21,271
INTERCOMPANY PAYABLE	—		125,974		—		168,076		(294,050		)	—
TOTAL SHAREHOLDERS’ EQUITY	1,539,190		1,599,115		841,517		2,413,908		(4,854,540		)	1,539,190
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,970,302	$	1,882,623	$	1,544,350	$	2,953,600	$	(5,148,590	)	$	3,202,285

18

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

	CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2012
	Rayonier Inc. (Parent Guarantor)		ROC (Subsidiary Guarantor)		Rayonier TRS Holdings Inc. (Issuer)		Non- guarantors		Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	252,888	$	3,966	$	19,358	$	4,384	$	—		$	280,596
Accounts receivable, less allowance for doubtful accounts	—		386		—		99,973		—			100,359
Inventory	—		—		—		127,966		—			127,966
Deferred tax assets	—		—		—		15,845		—			15,845
Prepaid and other current assets	—		1,566		691		39,251		—			41,508
Total current assets	252,888		5,918		20,049		287,419		—			566,274
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		—		1,573,309		—			1,573,309
NET PROPERTY, PLANT AND EQUIPMENT	—		2,321		—		704,717		—			707,038
INVESTMENT IN JOINT VENTURE	—		—		—		72,419		—			72,419
INVESTMENT IN SUBSIDIARIES	1,445,205		1,677,782		1,452,027		—		(4,575,014		)	—
INTERCOMPANY NOTES RECEIVABLE	213,863		14,000		19,831		—		(247,694		)	—
OTHER ASSETS	4,148		27,779		5,182		166,802		—			203,911
TOTAL ASSETS	$	1,916,104	$	1,727,800	$	1,497,089	$	2,804,666	$	(4,822,708	)	$	3,122,951
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	2,099	$	33	$	68,249	$	—		$	70,381
Current maturities of long-term debt	150,000		—		—		—		—			150,000
Accrued taxes	—		485		—		13,339		—			13,824
Accrued payroll and benefits	—		15,044		—		13,024		—			28,068
Accrued interest	3,100		379		3,197		1,280		—			7,956
Accrued customer incentives	—		—		—		10,849		—			10,849
Other current liabilities	—		2,925		—		15,715		—			18,640
Current liabilities for dispositions and discontinued operations	—		—		—		8,105		—			8,105
Total current liabilities	153,100		20,932		3,230		130,561		—			307,823
LONG-TERM DEBT	325,000		—		718,321		76,731		—			1,120,052
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		—		73,590		—			73,590
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		129,156		—		30,426		—			159,582
OTHER NON-CURRENT LIABILITIES	—		16,432		—		7,468		—			23,900
INTERCOMPANY PAYABLE	—		116,075		—		137,797		(253,872		)	—
TOTAL SHAREHOLDERS’ EQUITY	1,438,004		1,445,205		775,538		2,348,093		(4,568,836		)	1,438,004
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,916,104	$	1,727,800	$	1,497,089	$	2,804,666	$	(4,822,708	)	$	3,122,951

19

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2013
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	13,984		$	22,259		$	—		$	58,980		$	(5,563	)	$	89,660
INVESTING ACTIVITIES
Capital expenditures	—			(89		)	—			(32,575		)	—			(32,664		)
Purchase of timberlands	—			—			—			(1,560		)	—			(1,560		)
Jesup mill cellulose specialties expansion	—			—			—			(36,734		)	—			(36,734		)
Proceeds from the disposition of Wood Products business	—			—			—			83,741			—			83,741
Change in restricted cash	—			—			—			9,908			—			9,908
Investment in Subsidiaries	—			—			32,391			—			(32,391		)	—
Other	—			—			—			1,790			—			1,790
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	—			(89		)	32,391			24,570			(32,391		)	24,481
FINANCING ACTIVITIES
Issuance of debt	100,000			—			—			—			—			100,000
Repayment of debt	(150,000		)	—			(20,000		)	—			—			(170,000		)
Dividends paid	(57,744		)	—			—			—			—			(57,744		)
Proceeds from the issuance of common shares	4,091			—			—			—			—			4,091
Excess tax benefits on stock-based compensation	—			—			—			6,191			—			6,191
Repurchase of common shares	(11,241		)	—			—			—			—			(11,241		)
Intercompany distributions	—			(5,206		)	—			(32,748		)	37,954			—
CASH USED FOR FINANCING ACTIVITIES	(114,894		)	(5,206		)	(20,000		)	(26,557		)	37,954			(128,703		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			—			(17		)	—			(17		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(100,910		)	16,964			12,391			56,976			—			(14,579		)
Balance, beginning of year	252,888			3,966			19,358			4,384			—			280,596
Balance, end of period	$	151,978		$	20,930		$	31,749		$	61,360		$	—		$	266,017

20

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

	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)			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES	$	(14,838	)	$	33,980		$	12,000		$	105,616		$	(25,404	)	$	111,354
INVESTING ACTIVITIES
Capital expenditures	—			(55		)	—			(42,024		)	—			(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		)	—			8,805			—			8,736
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	—			(124		)	774			(73,543		)	(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		)	(29,016		)	26,178			—
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	146,464			(15,162		)	(12,000		)	(25,070		)	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			6,878			—			157,972
Balance, beginning of year	—			8,977			59,976			9,650			—			78,603
Balance, end of period	$	131,626		$	27,671		$	60,750		$	16,528		$	—		$	236,575

21

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

In March 2012, Rayonier Inc. issued $325 million of 3.75% Senior Notes due 2022. The notes are fully and unconditionally guaranteed by ROC and Rayonier TRS Holdings Inc. In connection with these notes, the Company provides the following consolidating financial information in accordance with SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended March 31, 2013
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	393,719		$	—		$	393,719
Costs and Expenses
Cost of sales	—			—			266,018			—			266,018
Selling and general expenses	—			2,401			13,698			—			16,099
Other operating (income) expense, net	(1,881		)	523			(2,145		)	—			(3,503		)
	(1,881		)	2,924			277,571			—			278,614
Equity in income of New Zealand joint venture	—			—			258			—			258
OPERATING INCOME (LOSS)	1,881			(2,924		)	116,406			—			115,363
Interest (expense) benefit	(3,275		)	(6,870		)	2,428			—			(7,717		)
Interest and miscellaneous income (expense), net	2,419			(222		)	(2,140		)	—			57
Equity in income from subsidiaries	146,710			153,444			—			(300,154		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	147,735			143,428			116,694			(300,154		)	107,703
Income tax expense (benefit)	—			3,282			(7,727		)	—			(4,445		)
INCOME FROM CONTINUING OPERATIONS	147,735			146,710			108,967			(300,154		)	103,258
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income taxes	—			—			44,477			—			44,477
NET INCOME	147,735			146,710			153,444			(300,154		)	147,735
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	975			975			975			(1,950		)	975
New Zealand joint venture cash flow hedges	554			554			554			(1,108		)	554
Gain from pension and postretirement plans, net of income tax	4,969			4,969			—			(4,969		)	4,969
Total other comprehensive income	6,498			6,498			1,529			(8,027		)	6,498
COMPREHENSIVE INCOME	$	154,233		$	153,208		$	154,973		$	(308,181	)	$	154,233

22

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended March 31, 2012
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	336,571		$	—		$	336,571
Costs and Expenses
Cost of sales	—			—			235,708			—			235,708
Selling and general expenses	—			3,311			15,954			—			19,265
Other operating expense (income), net	—			121			(1,260		)	—			(1,139		)
	—			3,432			250,402			—			253,834
Equity in income of New Zealand joint venture	—			—			13			—			13
OPERATING (EXPENSE) INCOME	—			(3,432		)	86,182			—			82,750
Interest expense	(1,249		)	(10,464		)	(112		)	—			(11,825		)
Interest and miscellaneous income (expense), net	1,912			119			(2,054		)	—			(23		)
Equity in income from subsidiaries	52,774			62,706			—			(115,480		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	53,437			48,929			84,016			(115,480		)	70,902
Income tax benefit (expense)	—			3,845			(22,148		)	—			(18,303		)
INCOME FROM CONTINUING OPERATIONS	53,437			52,774			61,868			(115,480		)	52,599
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income taxes	—			—			838			—			838
NET INCOME	53,437			52,774			62,706			(115,480		)	53,437
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	5,825			5,825			5,825			(11,650		)	5,825
New Zealand joint venture cash flow hedges	1,205			1,205			1,205			(2,410		)	1,205
Gain from pension and postretirement plans, net of income tax	3,140			3,140			2,380			(5,520		)	3,140
Total other comprehensive income	10,170			10,170			9,410			(19,580		)	10,170
COMPREHENSIVE INCOME	$	63,607		$	62,944		$	72,116		$	(135,060	)	$	63,607

23

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

	CONDENSED CONSOLIDATING BALANCE SHEETS As of March 31, 2013
	Rayonier Inc. (Parent Issuer)		Subsidiary Guarantors		Non- guarantors		Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	151,978	$	52,679	$	61,360	$	—		$	266,017
Accounts receivable, less allowance for doubtful accounts	27		485		105,181		—			105,693
Inventory	—		—		113,643		—			113,643
Deferred tax asset	—		—		66,509		—			66,509
Prepaid and other current assets	—		4,247		34,649		—			38,896
Total current assets	152,005		57,411		381,342		—			590,758
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		1,565,782		—			1,565,782
NET PROPERTY, PLANT AND EQUIPMENT	—		2,315		757,923		—			760,238
INVESTMENT IN JOINT VENTURE	—		—		73,830		—			73,830
INVESTMENT IN SUBSIDIARIES	1,599,115		2,472,796		—		(4,071,911		)	—
INTERCOMPANY NOTES RECEIVABLE	215,140		20,021		—		(235,161		)	—
OTHER ASSETS	4,042		32,912		174,723		—			211,677
TOTAL ASSETS	$	1,970,302	$	2,585,455	$	2,953,600	$	(4,307,072	)	$	3,202,285
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	1,685	$	106,808	$	—		$	108,493
Current maturities of long-term debt	50,000		—		—		—			50,000
Accrued taxes	—		14		30,045		—			30,059
Accrued payroll and benefits	—		8,578		9,893		—			18,471
Accrued interest	6,112		4,179		909		—			11,200
Accrued customer incentives	—		—		8,936		—			8,936
Other current liabilities	—		3,245		21,923		—			25,168
Current liabilities for dispositions and discontinued operations	—		—		8,398		—			8,398
Total current liabilities	56,112		17,701		186,912		—			260,725
LONG-TERM DEBT	375,000		698,916		76,555		—			1,150,471
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		71,799		—			71,799
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		129,743		29,086		—			158,829
OTHER NON-CURRENT LIABILITIES	—		14,007		7,264		—			21,271
INTERCOMPANY PAYABLE	—		125,973		168,076		(294,049		)	—
TOTAL SHAREHOLDERS’ EQUITY	1,539,190		1,599,115		2,413,908		(4,013,023		)	1,539,190
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,970,302	$	2,585,455	$	2,953,600	$	(4,307,072	)	$	3,202,285

24

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

	CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2012
	Rayonier Inc. (Parent Issuer)		Subsidiary Guarantors		Non- guarantors		Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	252,888	$	23,324	$	4,384	$	—		$	280,596
Accounts receivable, less allowance for doubtful accounts	—		386		99,973		—			100,359
Inventory	—		—		127,966		—			127,966
Deferred tax assets	—		—		15,845		—			15,845
Prepaid and other current assets	—		2,257		39,251		—			41,508
Total current assets	252,888		25,967		287,419		—			566,274
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		1,573,309		—			1,573,309
NET PROPERTY, PLANT AND EQUIPMENT	—		2,321		704,717		—			707,038
INVESTMENT IN JOINT VENTURE	—		—		72,419		—			72,419
INVESTMENT IN SUBSIDIARIES	1,445,205		2,354,270		—		(3,799,475		)	—
INTERCOMPANY NOTES RECEIVABLE	213,863		33,831		—		(247,694		)	—
OTHER ASSETS	4,148		32,961		166,802		—			203,911
TOTAL ASSETS	$	1,916,104	$	2,449,350	$	2,804,666	$	(4,047,169	)	$	3,122,951
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	2,132	$	68,249	$	—		$	70,381
Current maturities of long-term debt	150,000		—		—		—			150,000
Accrued taxes	—		485		13,339		—			13,824
Accrued payroll and benefits	—		15,044		13,024		—			28,068
Accrued interest	3,100		3,576		1,280		—			7,956
Accrued customer incentives	—		—		10,849		—			10,849
Other current liabilities	—		2,925		15,715		—			18,640
Current liabilities for dispositions and discontinued operations	—		—		8,105		—			8,105
Total current liabilities	153,100		24,162		130,561		—			307,823
LONG-TERM DEBT	325,000		718,321		76,731		—			1,120,052
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		73,590		—			73,590
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		129,156		30,426		—			159,582
OTHER NON-CURRENT LIABILITIES	—		16,432		7,468		—			23,900
INTERCOMPANY PAYABLE	—		116,074		137,797		(253,871		)	—
TOTAL SHAREHOLDERS’ EQUITY	1,438,004		1,445,205		2,348,093		(3,793,298		)	1,438,004
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,916,104	$	2,449,350	$	2,804,666	$	(4,047,169	)	$	3,122,951

25

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2013
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	13,984		$	22,259		$	58,980		$	(5,563	)	$	89,660
INVESTING ACTIVITIES
Capital expenditures	—			(89		)	(32,575		)	—			(32,664		)
Purchase of timberlands	—			—			(1,560		)	—			(1,560		)
Jesup mill cellulose specialties expansion	—			—			(36,734		)	—			(36,734		)
Proceeds from the disposition of Wood Products business	—			—			83,741			—			83,741
Change in restricted cash	—			—			9,908			—			9,908
Investment in Subsidiaries	—			32,391			—			(32,391		)	—
Other	—			—			1,790			—			1,790
CASH PROVIDED BY INVESTING ACTIVITIES	—			32,302			24,570			(32,391		)	24,481
FINANCING ACTIVITIES
Issuance of debt	100,000			—			—			—			100,000
Repayment of debt	(150,000		)	(20,000		)	—			—			(170,000		)
Dividends paid	(57,744		)	—			—			—			(57,744		)
Proceeds from the issuance of common shares	4,091			—			—			—			4,091
Excess tax benefits on stock-based compensation	—			—			6,191			—			6,191
Repurchase of common shares	(11,241		)	—			—			—			(11,241		)
Intercompany distributions	—			(5,206		)	(32,748		)	37,954			—
CASH USED FOR FINANCING ACTIVITIES	(114,894		)	(25,206		)	(26,557		)	37,954			(128,703		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			(17		)	—			(17		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(100,910		)	29,355			56,976			—			(14,579		)
Balance, beginning of year	252,888			23,324			4,384			—			280,596
Balance, end of period	$	151,978		$	52,679		$	61,360		$	—		$	266,017

26

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2012
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES	$	(14,838	)	$	33,980		$	105,616		$	(13,404	)	$	111,354
INVESTING ACTIVITIES
Capital expenditures	—			(55		)	(42,024		)	—			(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		)	8,805			—			8,736
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	—			650			(73,543		)	(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			(29,016		)	14,178			—
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	146,464			(15,162		)	(25,070		)	14,178			120,410
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			(125		)	—			(125		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	131,626			19,468			6,878			—			157,972
Balance, beginning of year	—			68,953			9,650			—			78,603
Balance, end of period	$	131,626		$	88,421		$	16,528		$	—		$	236,575

27

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

When we refer to "we," "us," "our," "the Company," or "Rayonier," we mean Rayonier Inc. and its consolidated subsidiaries. References herein to "Notes to Financial Statements" refer to the Notes to the Consolidated Financial Statements of Rayonier Inc. included in Item 1 of this Report.

The Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is intended to provide a reader of our financial statements with a narrative from the perspective of management on our financial condition, results of operations, liquidity, and certain other factors which may affect future results. Our MD&A should be read in conjunction with the 2012 Annual Report on Form 10-K.

Forward-Looking Statements

Certain statements in this document regarding anticipated financial outcomes including earnings guidance, if any, business and market conditions, outlook and other similar statements relating to Rayonier's future financial and operational performance, are "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are identified by the use of words such as "may," "will," "should," "expect," "estimate," "believe," "anticipate" and other similar language. Forward-looking statements are not guarantees of future performance and undue reliance should not be placed on these statements. The risk factors contained in Item 1A — Risk Factors in our 2012 Annual Report on Form 10-K, among others, could cause actual results to differ materially from those expressed in forward-looking statements that are made in this document.

Forward-looking statements are only as of the date they are made, and the Company undertakes no duty to update its forward- looking statements except as required by law. You are advised, however, to review any further disclosures we make on related subjects in our subsequent Forms 10-Q, 10-K, 8-K and other reports to the SEC.

Critical Accounting Policies and Use of Estimates

The preparation of financial statements requires us to make estimates, assumptions and judgments that affect our assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. We base these estimates and assumptions on historical data and trends, current fact patterns, expectations and other sources of information we believe are reasonable. Actual results may differ from these estimates. For a full description of our critical accounting policies, see Item 7 — Management's Discussion and Analysis of Financial Condition and Results of Operations in the 2012 Annual Report on Form 10-K.

Segments

We are a leading international forest products company primarily engaged in timberland management, the sale of real estate, and the production and sale of high-value specialty cellulose fibers and fluff pulp. We operate in three reportable business segments: Forest Resources, Real Estate and Performance Fibers. Prior to the first quarter of 2013, the Company operated in four reportable business segments, which included Wood Products. In March 2013, the Company sold its Wood Products business and its operations are shown as discontinued operations for all periods presented. See Note 2 — Sale of Wood Products Business for additional information.

Forest Resources sales include all activities which relate to the harvesting of timber. Real Estate sales include all property sales, including those designated for higher and better use ("HBU"). The assets of the Real Estate segment include HBU property held by our real estate subsidiary, TerraPointe LLC. The Performance Fibers segment includes two major product lines, cellulose specialties and absorbent materials. Our remaining operations include harvesting and selling timber acquired from third parties (log trading). These operations are combined and reported in "Other Operations." Sales between operating segments are made based on estimated fair market value, and intercompany sales, purchases and profits or losses are eliminated in consolidation.

We evaluate financial performance based on the operating income of the segments. Operating income, as presented in the Consolidated Statements of Income and Comprehensive Income, is equal to segment income (loss). Certain income (loss) items in the Consolidated Statements of Income and Comprehensive Income are not allocated to segments. These items, which include gains (losses) from certain asset dispositions, interest income (expense), miscellaneous income (expense) and income tax (expense) benefit, are not considered by management to be part of segment operations.

28

Results of Operations

	Three Months Ended March 31,
Financial Information (in millions)	2013			2012
Sales
Forest Resources
Atlantic	$	17		$	15
Gulf States	12			10
Northern	25			24
New Zealand	3			3
Total Forest Resources	57			52
Real Estate
Development	1			—
Rural	3			11
Non-Strategic Timberlands	20			1
Total Real Estate	24			12
Performance Fibers
Cellulose specialties	247			212
Absorbent materials	37			39
Total Performance Fibers	284			251
Other Operations	29			22
Total Sales	$	394		$	337
Operating Income (Loss)
Forest Resources	$	13		$	8
Real Estate	17			6
Performance Fibers	92			81
Other Operations	—			(1		)
Corporate and other	(7		)	(11		)
Operating Income	115			83
Interest Expense, Interest Income and Other	(8		)	(12		)
Income Tax Expense	(4		)	(19		)
Income from Continuing Operations	$	103		$	52
Discontinued Operations, Net	45			1
Net Income	$	148		$	53
Diluted Earnings Per Share
Continuing Operations	$	0.79		$	0.41
Discontinued Operations	0.34			0.01
Net Income	$	1.13		$	0.42

29

FOREST RESOURCES

Sales (in millions)	2012		Changes Attributable to:					2013
Three Months Ended March 31,			Price		Volume/ Mix/Other
Atlantic	$	15	$	1	$	1		$	17
Gulf States	10		1		1			12
Northern	24		2		(1		)	25
New Zealand	3		—		—			3
Total Sales	$	52	$	4	$	1		$	57

Operating Income (in millions)	2012		Changes Attributable to:							2013
Three Months Ended March 31,			Price		Volume/ Mix		Cost/Other
Atlantic	$	3	$	1	$	1	$	—		$	5
Gulf States	1		1		—		—			2
Northern	4		2		1		(2		)	5
New Zealand/Other	—		—		—		1			1
Total Operating Income	$	8	$	4	$	2	$	(1	)	$	13

In the Atlantic and Gulf regions, both sales and operating income increased for the three months ended March 31, 2013 over the prior year period as prices increased due to improved demand and a shift in sales volume from pulpwood to sawtimber. In addition, volumes in the Atlantic region were accelerated into the first quarter as additional tracts were made available to capture favorable prices.

In the Northern region, improved domestic and export demand led to a 12 percent increase in Northwest stumpage prices over the prior year period. Operating income also improved significantly for the three months ended March 31, 2013 over the prior year period as higher prices and volumes more than offset increased logging costs.

The New Zealand sales represent timberland management fees for services provided to our New Zealand joint venture ("JV") in which we owned 26 percent as of March 31, 2013. The operating income primarily represents equity earnings related to the JV's timber activities. In April 2013, we acquired an additional 39 percent ownership interest in the New Zealand JV for about $140 million. As a 65 percent owner, we will be required to consolidate 100 percent of the JV's results of operations and record the non-controlling partner's 35 percent interest, beginning in the second quarter.

REAL ESTATE

Our real estate holdings are primarily in the southeastern U.S. We segregate these real estate holdings into three groups: development HBU, rural HBU and non-strategic timberlands. Our strategy is to extract maximum value from our HBU properties while selling non-strategic holdings to allow reinvestment in more strategic properties.

Sales (in millions)	2012		Changes Attributable to:					2013
Three Months Ended March 31,			Price		Volume/Mix
Development	$	—	$	1	$	—		$	1
Rural	11		—		(8		)	3
Non-Strategic Timberlands	1		9		10			20
Total Sales	$	12	$	10	$	2		$	24

Operating Income (in millions)	2012		Changes Attributable to:				2013
Three Months Ended March 31,			Price		Volume/Mix
Total Operating Income	$	6	$	10	$	1	$	17

30

First quarter 2013 sales and operating income both increased over the prior year period due to higher non-strategic timberland prices and volumes, which included a 5,400 acre sale at $3,673 per acre. Favorable non-strategic timberland results were partially offset by a decline in rural volumes, as the prior year period included two large sales totaling 3,900 acres.

PERFORMANCE FIBERS

Sales (in millions)	2012		Changes Attributable to:					2013
Three Months Ended March 31,			Price			Volume/ Mix
Cellulose specialties	$	212	$	9		$	26	$	247
Absorbent materials	39		(6		)	4		37
Total Sales	$	251	$	3		$	30	$	284

Cellulose specialties sales improved in first quarter 2013 versus the prior year period as volumes increased 12 percent due to the timing of customer orders and prices increased four percent. Absorbent materials sales decreased compared to the prior year period due to a 12 percent decline in price resulting from weaker market conditions. The impact of lower absorbent materials prices was partially offset by a nine percent increase in volumes.

Operating Income (in millions)	2012		Changes Attributable to:							2013
Three Months Ended March 31,			Price		Volume/ Mix		Cost/Other
Total Operating Income	$	81	$	3	$	10	$	(2	)	$	92

Operating income improved by 14 percent for the three months ended March 31, 2013 over the prior year period as higher cellulose specialties prices and volumes more than offset weaker absorbent materials prices and increased wood costs.

We are on schedule to complete the Jesup mill cellulose specialties expansion project ("CSE") in mid-2013 at a cost range of $375 million to $390 million. As a result, 2013 will be a transition year for our Performance Fibers business as we will be exiting the commodity absorbent materials business and moving to producing only cellulose specialties. Upon completion of the CSE, we plan to initially produce commodity viscose as we commence customer qualifications for cellulose specialties from the converted line. As we complete customer qualifications and transition from producing commodity viscose to cellulose specialties, phased-in production of cellulose specialties from the CSE is expected to be 5,000 to 20,000 tons in 2013, approximately 100,000 tons in 2014, and reach the full production rate of 190,000 tons of new capacity in late 2015. As production of cellulose specialties increases, we anticipate total sales and operating income to increase as higher prices received on the additional cellulose specialties volumes more than offset expected cost increases of approximately 11 percent for 2013 and the net 70,000 metric ton reduction in overall production capacity. For the quarter ended March 31, 2013, our cellulose specialties average sales price of $1,874 per metric ton was $1,230 above our absorbent materials average sales price per metric ton. We expect our costs to increase during the CSE phase-in due to start-up and higher conversion costs and depreciation expense.

OTHER OPERATIONS

Sales from our New Zealand log trading business increased $7 million for the three months ended March 31, 2013 over the prior year period while operating income improved $1 million due to increased Asian demand. Operating results also benefited from foreign currency gains.

Corporate and Other Expense/Eliminations

Corporate and other expenses for first quarter 2013 decreased from the prior year period primarily due to lower stock-based compensation and foreign currency forward contract gains.

Interest Expense/Income and Income Tax Expense

Interest and other expenses were $4 million below the three months ended March 31, 2012 due to lower borrowing rates and higher capitalized interest related to the CSE project.

The first quarter 2013 effective tax rate from continuing operations before discrete items was 23.4 percent compared to 26.5 percent in the prior year period. The lower tax rate was due to proportionately higher earnings from REIT operations in 2013. Including discrete items, primarily the $19 million benefit from the Alternative Fuel Mixture Credit ("AFMC") exchange for the Cellulosic Biofuel Producer Credit ("CBPC") in first quarter, the effective tax rate was 4.1 percent versus 25.8 percent in first quarter 2012. See Note 4 —  Income Taxesfor additional information.

31

Outlook

In Forest Resources, the early stages of an improving housing market are being reflected in increasing sawlog demand and prices, and Asian export markets have strengthened. In Real Estate, we are encouraged by higher demand for our non-strategic properties and increased interest in our development properties. In this transition year for Performance Fibers, cellulose specialties markets continue to be strong.

We expect 2013 earnings from continuing operations to be weighted more heavily toward the first half of the year with the benefit of the tax credits recognized in the first quarter and the impact of the CSE project phase-in on the second half. Overall, excluding the results of the Wood Products business and gain on sale, we continue to expect 2013 operating income and EPS to be slightly above 2012.

Our full year 2013 financial guidance is subject to a number of variables and uncertainties, including those discussed under Item 2 — Management's Discussion and Analysis of Financial Condition and Results of Operations, Forward-Looking Statements of this Form 10-Q and Item 1A — Risk Factors in our 2012 Annual Report on Form 10-K. 

Employee Relations

On June 30, 2012, collective bargaining agreements covering approximately 700 hourly employees at our Jesup mill expired. Negotiations were successfully concluded on March 28, 2013, and the unions ratified a new agreement on April 12, 2013 that will expire on June 30, 2017. See Item 1 — Business and Item 1A — Risk Factors in our 2012 Annual Report on Form 10-K for additional information on employee relations.

Liquidity and Capital Resources

Our operations have generally produced consistent cash flows and required limited capital resources. Short-term borrowings have helped fund cyclicality in working capital needs and long-term debt has been used to fund major acquisitions and strategic projects.

Summary of Liquidity and Financing Commitments (in millions of dollars)

	March 31,			December 31,
	2013			2012
Cash and cash equivalents (a)	$	266		$	281
Total debt	1,200			1,270
Shareholders’ equity	1,539			1,438
Total capitalization (total debt plus equity)	2,739			2,708
Debt to capital ratio	44		%	47		%

(a) Cash and cash equivalents consisted primarily of time deposits with original maturities of 90 days or less.

Cash Flows (in millions of dollars)

The following table summarizes our cash flows from operating, investing and financing activities for the three months ended March 31:

	2013			2012
Cash provided by (used for):
Operating activities	$	90		$	111
Investing activities	24			(74		)
Financing activities	(129		)	120

Cash Provided by Operating Activities

Cash provided by operating activities decreased primarily due to the Company's election to pay $70 million to exchange the AFMC for the CBPC. This resulted in a $19 million discrete tax benefit in the current quarter reflecting reduced future tax payments of $89 million, including approximately $60 million realized during the remainder of 2013 and $29 million in the first half of 2014. Excluding this item, operating cash inflows increased $49 million, primarily due to stronger operating results.

32

Cash Provided by (Used for) Investing Activities

Cash provided by investing activities increased mainly due to the receipt of $84 million from the sale of our Wood Products business, lower capital expenditures and strategic timberland acquisitions and a change in restricted cash due to the timing of like-kind exchanges. Partially offsetting these results was an $11 million increase in spending on the CSE.

Cash (Used for) Provided by Financing Activities

Cash used for financing activities increased primarily due to net repayments of $70 million in first quarter 2013 versus net borrowings of $175 million in the prior year period. In addition, dividend payments were higher due to the rate increase effective in third quarter 2012.

Expected 2013 Expenditures

Capital expenditures in 2013 are forecasted between $150 million and $160 million, excluding strategic timberland acquisitions and the CSE. We spent $37 million in the first quarter of 2013 on the CSE and expect total 2013 CSE spending to range between $130 million and $145 million. Annual dividend payments are expected to increase from $207 million in 2012 to $224 million in 2013 assuming no change in the quarterly dividend rate of $0.44 per share.

We have no mandatory pension contributions in 2013 but may make discretionary contributions. Cash payments for income taxes in 2013 are anticipated to be between $75 million and $80 million, excluding taxes related to the gain on the Wood Products sale. Expenditures for environmental costs related to our dispositions and discontinued operations are expected to be $8 million. See Note 11 — Liabilities for Dispositions and Discontinued Operations for further information.

Performance and Liquidity Indicators

The discussion below is presented to enhance the reader’s understanding of our operating performance, liquidity, ability to generate cash and satisfy rating agency and creditor requirements. This information includes two measures of financial results: Earnings before Interest, Taxes, Depreciation, Depletion and Amortization ("EBITDA"), and Adjusted Cash Available for Distribution ("Adjusted CAD"). These measures are not defined by Generally Accepted Accounting Principles ("GAAP") and the discussion of EBITDA and Adjusted CAD is not intended to conflict with or change any of the GAAP disclosures described above. Management considers these measures to be important to estimate the enterprise and shareholder values of the Company as a whole and of its core segments, and for allocating capital resources. In addition, analysts, investors and creditors use these measures when analyzing our operating performance, financial condition and cash generating ability. Management uses EBITDA as a performance measure and Adjusted CAD as a liquidity measure. EBITDA is defined by the Securities and Exchange Commission. Adjusted CAD as defined, however, may not be comparable to similarly titled measures reported by other companies.

We reconcile EBITDA to Net Income for the consolidated Company and Operating Income for the Segments, as those are the nearest GAAP measures for each. Below is a reconciliation of Net Income to EBITDA for the respective periods (in millions of dollars):

	Three Months Ended March 31,
	2013		2012
Net Income to EBITDA Reconciliation
Net Income	$	148	$	53
Interest, net	8		12
Income tax expense, continuing operations	4		18
Income tax expense, discontinued operations	22		1
Depreciation, depletion and amortization	36		30
Depreciation, depletion and amortization from discontinued operations	1		1
EBITDA	$	219	$	115

33

EBITDA by segment is a critical valuation measure used by our Chief Operating Decision Maker, existing shareholders and potential shareholders to measure how the Company is performing relative to the assets under management. EBITDA by segment for the respective periods was as follows (millions of dollars):

	Three Months Ended March 31,
	2013		2012
EBITDA by Segment
Forest Resources	$	30	$	25
Real Estate	21		8
Performance Fibers	107		92
Other Operations	—		(1		)
Corporate and other (a)	61		(9		)
EBITDA	$	219	$	115

(a) First quarter 2013 results includes a $64 million gain on the sale of Wood Products.

For the three months ended March 31, 2013, EBITDA was higher than the prior year period primarily due to higher operating results.

The following tables reconcile Operating Income by segment to EBITDA by segment (millions of dollars):

	Forest Resources		Real Estate		Performance Fibers		Other Operations			Corporate and Other			Total
Three Months Ended March 31, 2013
Operating Income	$	13	$	17	$	92	$	—		$	(7	)	$	115
Add: Depreciation, depletion and amortization	17		4		15		—			—			36
Add: Income from discontinued operations	—		—		—		—			67			67
Add: Depreciation, depletion and amortization from discontinued operations	—		—		—		—			1			1
EBITDA	$	30	$	21	$	107	$	—		$	61		$	219
Three Months Ended March 31, 2012
Operating Income(Loss)	$	8	$	6	$	81	$	(1	)	$	(11	)	$	83
Add: Depreciation, depletion and amortization	17		2		11		—			—			30
Add: Income from discontinued operations	—		—		—		—			1			1
Add: Depreciation, depletion and amortization from discontinued operations	—		—		—		—			1			1
EBITDA	$	25	$	8	$	92	$	(1	)	$	(9	)	$	115

Adjusted CAD is a non-GAAP measure of cash generated during a period which is available for dividend distribution, repurchase of the Company's common shares, debt reduction and strategic acquisitions. We define CAD as Cash Provided by Operating Activities adjusted for capital spending, the change in committed cash, and other items which include cash provided by discontinued operations, proceeds from matured energy forward contracts, excess tax benefits on stock-based compensation and the change in capital expenditures purchased on account. Committed cash represents outstanding checks that have been drawn on our zero balance bank accounts but have not been paid. In compliance with SEC requirements for non-GAAP measures, we reduce CAD by mandatory debt repayments which results in the measure entitled "Adjusted CAD."

34

Below is a reconciliation of Cash Provided by Operating Activities to Adjusted CAD (in millions of dollars):

	Three Months Ended March 31,
	2013			2012
Cash provided by operating activities	$	90		$	111
Capital expenditures (a)	(33		)	(42		)
Change in committed cash	1			5
Excess tax benefits on stock-based compensation	6			4
Other	3			9
CAD	67			87
Mandatory debt repayments	—			—
Adjusted CAD	$	67		$	87

Cash provided by (used for) investing activities	$	24		$	(74	)
Cash (used for) provided by financing activities	$	(129	)	$	120

(a) Capital expenditures exclude strategic capital. Strategic capital totaled $58 million for the CSE and $2 million for timberland acquisitions for the three months ended March 31, 2013. Strategic capital totaled $41 million for the CSE and $9 million for timberland acquisitions for the three months ended March 31, 2012.

Adjusted CAD was lower in 2013 primarily due to a $70 million tax payment to exchange AFMC for CBPC, partially offset by higher operating results. Adjusted CAD generated in any period is not necessarily indicative of the amounts that may be generated in future periods.

Liquidity Facilities

During first quarter 2013, we made net repayments of $70 million on our $450 million unsecured revolving credit facility. The Company had $242 million of available borrowings under this facility at March 31, 2013.

As of December 31, 2012, our $172.5 million 4.50% Senior Exchangeable Notes due 2015 became exchangeable at the option of the holders for the calendar quarter ending March 31, 2013. Per the indenture, in order for the notes to become exchangeable, the Company's stock price must exceed 130 percent of the exchange price for 20 trading days in a period of 30 consecutive trading days as of the last day of the quarter. During the quarter ended March 31, 2013, the note holders did not elect to exercise the exchange option. These notes are also exchangeable in the second quarter based upon the average stock price for the 30 trading days ending March 31, 2013. If the note holders exercise their options prior to June 30, 2013, the Company intends to repay the principal of the notes by accessing its revolving credit facility. Any excess exchange value will be settled at the option of the Company in either cash or stock of Rayonier.

In connection with our installment note, term credit agreement and credit facility, covenants must be met, including ratios based on the covenant definition of EBITDA, ratios based on consolidated funded debt compared to consolidated net worth, ratios of subsidiary debt to consolidated net tangible assets and ratios of cash flows to fixed charges. At March 31, 2013, we are in compliance with all of these covenants.

In addition to these financial covenants, the installment note, mortgage note, term credit agreement and revolving credit facility include customary covenants that limit the incurrence of debt and the disposition of assets, among others.

Contractual Financial Obligations and Off-Balance Sheet Arrangements

We have no material changes to the Contractual Financial Obligations table as presented in Item 7 — Management's Discussion and Analysis of Financial Condition and Results of Operations of our 2012 Annual Report on Form 10-K. See Note 10 — Guarantees for details on the letters of credit, surety bonds and guarantees as of March 31, 2013.

35

Sales Volumes by Segment:

	Three Months Ended March 31,
	2013	2012
Forest Resources — in thousands of short green tons
Atlantic	868	737
Gulf States	410	442
Northern	455	441
Total	1,733	1,620
Real Estate — in acres
Development	86	20
Rural	1,175	5,452
Non-Strategic Timberlands	5,575	238
Total	6,836	5,710
Performance Fibers
Sales volume — in thousands of metric tons
Cellulose specialties	132	117
Absorbent materials	56	51
Total	188	168

36

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market and Other Economic Risks

Our exposures to market risk have not changed materially since December 31, 2012. For quantitative and qualitative disclosures about market risk, see Item 7A — Quantitative and Qualitative Disclosures about Market Risk in our 2012 Annual Report on Form 10-K.

Item 4. CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Rayonier management is responsible for establishing and maintaining adequate disclosure controls and procedures. Disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act")), are designed with the objective of ensuring that information required to be disclosed by the Company in reports filed under the Exchange Act, such as this quarterly report on Form 10-Q, is (1) recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and (2) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Because of the inherent limitations in all control systems, no control evaluation can provide absolute assurance that all control exceptions and instances of fraud have been prevented or detected on a timely basis. Even systems determined to be effective can provide only reasonable assurance that their objectives are achieved.

Based on an evaluation of our disclosure controls and procedures as of the end of the period covered by this quarterly report on Form 10-Q, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that the design and operation of the disclosure controls and procedures were effective as of March 31, 2013.

In the quarter ended March 31, 2013, based upon the evaluation required by paragraph (d) of SEC Rule 13a-15, there were no changes in our internal control over financial reporting that would materially affect or are reasonably likely to materially affect our internal control over financial reporting.

37

PART II.    OTHER INFORMATION

Item 1.    Legal Proceedings

On February 6, 2013, China's Ministry of Commerce (MOFCOM) notified the Company and a number of other parties that it had commenced an anti-dumping investigation into imports of dissolving, cotton and bamboo pulp into China from the U.S., Canada and Brazil. The notice published by MOFCOM indicates the investigation was initiated based on a petition filed by a number of primarily commodity viscose pulp manufacturers in China. Nonetheless, as currently scoped by MOFCOM, the investigation includes all dissolving pulp, including the Company's high alpha (high purity) cellulose specialties pulps.

According to the notice, the investigation period for dumping covers calendar year 2012, and the investigation period for purposes of determining potential injury to the Chinese cellulose pulp industry is from January 1, 2010 until December 31, 2012. During calendar year 2012, Rayonier shipped about 124,000 tons of pulp into China, with about 114,500 tons being our high alpha acetate and other high purity pulps. The remainder was commodity viscose pulps.  

Under Chinese law, the entire anti-dumping investigation process is expected to take 12 to 18 months. Based on detailed information required to be submitted, MOFCOM is expected to first make a preliminary determination of the dumping margin, if any, on a company-by-company basis within 6 to 9 months after initiation. Between 12 and 18 months from initiation, MOFCOM is then expected to issue its final dumping determination for each company. Final dumping duties, if any, are imposed for five years.

The Company is cooperating with this investigation. While no assurances can be given, it is not expected that this matter will have a material adverse effect on the business or financial condition of the Company.

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

The following table provides information regarding our purchases ofRayonier common stock during the quarter ended March 31, 2013:

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		209,743	$	53.58	—	3,555,844
February 1 to February 29		—	—		—	3,555,844
March 1 to March 31		—	$	—	—	3,555,844
	Total	209,743			—	3,555,844

(1) Repurchased to satisfy the minimum tax withholding requirements related to the vesting of performance and restricted shares under the Rayonier Incentive Stock Plan.

See Item 5 — Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities in our 2012 Annual Report on Form 10-K for additional information regarding our Common Share repurchase program.

38

Item 6.Exhibits

31.1	Chief Executive Officer's Certification Pursuant to Rule 13a-14(a) / 15d-14(a) and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith
31.2	Chief Financial Officer's Certification Pursuant to Rule 13a-14(a)/15d-14-(a) and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith
32	Certification of Periodic Financial Reports Under Section 906 of the Sarbanes-Oxley Act of 2002	Furnished herewith
101	The following financial information from our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2013, formatted in Extensible Business Reporting Language ("XBRL"), includes: (i) the Consolidated Statements of Income and Comprehensive Income for the Three Months Ended March 31, 2013 and 2012; (ii) the Consolidated Balance Sheets as of March 31, 2013 and December 31, 2012 (iii) the Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2013 and 2012; and (iv) the Notes to Condensed Consolidated Financial Statements	Filed herewith

39

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	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)

Date: April 26, 2013

40

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Paul G. Boynton, certify that:

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.

Date: April 26, 2013

/S/ PAUL G. BOYNTON

Paul G. Boynton

Chairman, President and Chief Executive Officer, Rayonier Inc.

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Hans E. Vanden Noort, certify that:

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.

Date: April 26, 2013

/s/ HANS E. VANDEN NOORT

Hans E. Vanden Noort

Senior Vice President and

Chief Financial Officer, Rayonier Inc.

EX-32

EXHIBIT 32

CERTIFICATION

The undersigned hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to our knowledge:

1. The quarterly report on Form 10-Q of Rayonier Inc. (the "Company") for the period ended March 31, 2013 (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.

April 26, 2013

/s/ PAUL G. BOYNTON	/s/ HANS E. VANDEN NOORT
Paul G. Boynton	Hans E. Vanden Noort
Chairman, President and Chief Executive Officer, Rayonier Inc.	Senior Vice President and Chief Financial Officer, Rayonier Inc.

XML

Sale of Wood Products Business (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Mar. 01, 2013
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Description of Proceeds from Divestiture of Business	$80 million plus a working capital adjustment
After-tax gain on gain on disposal	$ 42,670	$ 0
Operating results of discontinued operations
Income tax expense	(22,273)	(422)
Income from discontinued operations, net	44,477	838
Wood Products business [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Description and Timing of Disposal	On March 1, 2013, Rayonier completed the previously announced sale of its Wood Products business (consisting of three lumber mills in Baxley, Swainsboro and Eatonton, Georgia) to International Forest Products Limited (“Interfor”)
Description of Proceeds from Divestiture of Business	$80 million plus a working capital adjustment
Segment that Includes Disposal Group	Wood Products business, formerly reported as a separate operating segment
After-tax gain on gain on disposal	42,700
Operating results of discontinued operations
Sales	16,968	19,209
Cost of sales and other	(14,258)	(17,949)
Gain on sale of discontinued operations	64,040	0
Income from discontinued operations, before income taxes	66,750	1,260
Income tax expense	(22,273)	(422)
Major classes of Wood Products' assets and liabilities included in the sale
Accounts receivable, net			4,127
Inventory			4,270
Prepaid and other current assets			2,053
Property, plant and equipment, net			9,990
Total assets			20,440
Total liabilities			596
Cash Flows of Disposal Group	Cash flows from discontinued operations are immaterial both individually and in the aggregate. As such, they are included with cash flows from continuing operations in the Consolidated Statements of Cash Flows.
Continuation of Activities with Discontinued Operation after Disposal, Description	Pursuant to the purchase and sale agreement, Rayonier will provide Interfor with saw timber procurement services for the three lumber mills through December 31, 2013. Rayonier also contracted with Interfor to purchase wood chips produced at the lumber mills for use at Rayonier's Jesup pulp mill and market other wood chips produced by the mills to third parties on Interfor's behalf. The Company will purchase 100 percent of the Baxley mill chips for five years and 25 percent of the Swainsboro mill chips through the end of 2013. The purchase price of these chips will be based on the average price paid by the Company to unrelated third parties.
Wood chip purchases	1,650	3,234
Saw timber procurement services	223	287
Total intercompany	$ 1,873	$ 3,521

XML

Employee Benefit Plans Narrative (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]
Defined Benefit Plans, General Information	The Company has four qualified non-contributory defined benefit pension plans covering a significant majority of its employees
Defined Benefit Plan, Unfunded Plan	an unfunded plan that provides benefits in excess of amounts allowable under current tax law in the qualified plans
Defined Benefit Plan, Other Information	Currently, all qualified plans are closed to new participants.
Pension Contributions	$ 0

XML

Fair Value Measurements Carrying Amounts and Fair Values (Details) (USD $) In Thousands, unless otherwise specified					3 Months Ended
	Mar. 31, 2013		Dec. 31, 2012		Mar. 31, 2013 Cash, Cash Equivalents and Restricted Cash [Member]	Mar. 31, 2013 Borrowings [Member]	Mar. 31, 2013 Carrying Amount	Dec. 31, 2012 Carrying Amount	Mar. 31, 2013 Estimate of Fair Value, Fair Value Disclosure [Member] Level 1		Dec. 31, 2012 Estimate of Fair Value, Fair Value Disclosure [Member] Level 1		Mar. 31, 2013 Estimate of Fair Value, Fair Value Disclosure [Member] Level 2		Dec. 31, 2012 Estimate of Fair Value, Fair Value Disclosure [Member] Level 2
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents							$ 266,017	$ 280,596	$ 266,017		$ 280,596		$ 0		$ 0
Restricted cash	651	[1]	10,559	[1]					651	[1]	10,559	[1]	0	[1]	0	[1]
Current maturities of long-term debt	(50,000)		(150,000)				(50,000)	(150,000)	0		0		(50,000)		(150,000)
Long-term debt	$ (1,150,471)		$ (1,120,052)				$ (1,150,471)	$ (1,120,052)	$ 0		$ 0		$ (1,307,144)		$ (1,250,341)
Fair Value Measurements, Valuation Techniques					The carrying amount is equal to fair market value	The fair value of fixed rate debt is based upon quoted market prices for debt with similar terms and maturities.

[1] Restricted cash is recorded in "Other Assets" and represents the proceeds from LKE sales deposited with a third-party intermediary.

XML

Employee Benefit Plans Net Periodic Benefit Cost (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Pension Plans, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 2,419	$ 1,940
Interest cost	4,834	3,989
Expected return on plan assets	(7,424)	(5,879)
Amortization of prior service cost	388	302
Amortization of losses	5,727	4,056
Net periodic benefit cost	5,944	4,408
Other Postretirement Benefit Plans, Defined Benefit [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	249	210
Interest cost	240	223
Expected return on plan assets	0	0
Amortization of prior service cost	6	6
Amortization of losses	218	144
Net periodic benefit cost	$ 713	$ 583

XML

Shareholders' Equity (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		12 Months Ended	0 Months Ended	3 Months Ended		12 Months Ended	3 Months Ended		12 Months Ended	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012	Apr. 02, 2013 Warrants on Senior Exchangeable Notes due 2012 [Member]	Mar. 31, 2013 Warrants on Senior Exchangeable Notes due 2012 [Member]	Mar. 31, 2013 Common Stock Including Additional Paid in Capital [Member]	Dec. 31, 2012 Common Stock Including Additional Paid in Capital [Member]	Mar. 31, 2013 Common Stock Including Additional Paid in Capital [Member] Warrants on Senior Exchangeable Notes due 2012 [Member]	Mar. 31, 2013 Retained Earnings [Member]	Dec. 31, 2012 Retained Earnings [Member]	Mar. 31, 2013 Accumulated Other Comprehensive Income (Loss) [Member]	Dec. 31, 2012 Accumulated Other Comprehensive Income (Loss) [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' Equity Attributable to Parent, Period Start	$ 1,438,004	$ 1,323,073	$ 1,323,073			$ 670,749	$ 630,286		$ 876,634	$ 806,235	$ (109,379)	$ (113,448)
Shares Issued, Period Start						123,332,444	122,035,177
Net Income	147,735	53,437	278,685						147,735	278,685
Dividends	(55,396)		(208,286)						(55,396)	(208,286)
Issuance of shares under incentive stock plans	4,091		25,495			4,091	25,495
Issuance of shares under incentive stock plan, Shares						743,381	1,467,024
Stock-based compensation	3,308		15,116			3,308	15,116
Excess tax benefit on stock-based compensation	6,191		7,635			6,191	7,635
Repurchase of common shares	(11,241)		(7,783)			(11,241)	(7,783)
Stock Repurchased During Period, Shares						(209,743)	(169,757)
Maturity of Warrants, Value	0							0
Maturity of Warrants, Shares				97,918	2,036,976			2,036,976
Net gain (loss) from pension and postretirement plans	4,969	3,140	(496)								4,969	(496)
Foreign currency translation adjustment	975	5,825	4,352								975	4,352
Joint venture cash flow hedges	554	1,205	213								554	213
Stockholders' Equity Attributable to Parent, Period End	$ 1,539,190		$ 1,438,004			$ 673,098	$ 670,749		$ 968,973	$ 876,634	$ (102,881)	$ (109,379)
Shares Issued, Period End						125,903,058	123,332,444
Dividends [Abstract]
Common Stock, Dividends, Per Share, Declared	$ 0.44	$ 0.40	$ 1.68

XML

Liabilities for Dispositions and Discontinued Operations (Tables)

3 Months Ended

Mar. 31, 2013

Liabilities of Disposal Group, Including Discontinued Operation [Abstract]

Schedule of Change in Environmental Loss Contingencies [Table Text Block]

An analysis of the liabilities for dispositions and discontinued operations follows:

	March 31,			December 31,
	2013			2012
Balance, beginning of period	$	81,695		$	90,824
Expenditures charged to liabilities	(1,631		)	(9,926		)
Increase to liabilities	133			797
Balance, end of period	80,197			81,695
Less: Current portion	(8,398		)	(8,105		)
Non-current portion	$	71,799		$	73,590

XML

Accumulated Other Comprehensive Loss (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended			12 Months Ended
	Mar. 31, 2013		Mar. 31, 2012	Dec. 31, 2012
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Foreign currency translation adjustments	$ 39,804			$ 38,829
Joint venture cash flow hedges	(3,074)	[1]		(3,628)	[1]
Unrecognized losses of employee benefit plans, net of tax	(139,611)	[2]		(144,580)	[2]
Total	(102,881)			(109,379)
Other comprehensive income before reclassifications - Foreign currency translation gains	975
Other comprehensive income before reclassifications - New Zealand joint venture cash flow hedge	554	[1]
Other comprehensive income before reclassifications - Unrecognized components of employee benefit plans, net of tax	530	[2]
Other comprehensive income before reclassifications - Total	2,059
Amounts reclassified from accumulated other comprehensive income - Foreign currency translation gains	0
Amounts reclassified from accumulated other comprehensive income - New Zealand joint venture cash flow hedges	0	[1]
Amounts reclassified from accumulated other comprehensive income - Unrecognized components of employee benefit plans, net of tax	4,439	[2]
Amounts reclassified from accumulated other comprehensive income - Total	4,439
Net other comprehensive income - Foreign currency translation adjustment	975		5,825	4,352
Net other comprehensive income - New Zealand joint venture cash flow hedges	554		1,205	213
Net other comprehensive income - Gain from pension and postretirement plans, net of income tax	4,969		3,140	(496)
Net other comprehensive income, net of tax	$ 6,498		$ 10,170

[1] Rayonier records its proportionate share of the JV’s cash flow hedges as increases or decreases to "Investment in Joint Venture" with corresponding adjustments to "Accumulated other comprehensive loss" in the Company’s Consolidated Balance Sheets.

[2] See Note 13 — Employee Benefit Plans for additional information.

XML

Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2013

Accounting Policies [Abstract]

Comparability of Prior Year Financial Data, Policy [Policy Text Block]

Certain 2012 amounts have been reclassified to agree with the current year presentation.

New Accounting Pronouncements, Policy [Policy Text Block]

New Accounting Standards

In February 2013, the Financial Accounting Standards Board issued Accounting Standards Update No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This standard requires reporting, in one place, information about reclassifications out of AOCI by component. An entity is required to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of AOCI by the respective line items of net income, but only if the amount is reclassified in its entirety in the same reporting period. For amounts that are not required to be reclassified to net income in their entirety, an entity is required to cross-reference to other currently required disclosures that provide additional detail about those amounts. The information required by this standard must be presented in one place, either parenthetically on the face of the financial statements by income statement line item or in a note. See Note 15 — Accumulated Other Comprehensive Loss for our disclosures required under this guidance.

Equity Method Investments, Policy [Policy Text Block]

Rayonier’s investment in the JV is accounted for using the equity method of accounting. Income from the JV is reported in the Forest Resources segment as operating income since the Company manages the forests and its JV interest is an extension of the Company’s operations. A portion of Rayonier’s equity method investment is recorded at historical cost which generates a difference between the book value of the Company’s investment and its proportionate share of the JV’s net assets. The difference represents the Company’s unrecognized gain from RNZ’s sale of timberlands to the JV in 2005. The deferred gain is recognized on a straight-line basis over the estimated number of years the JV expects to harvest the timberlands.

Consolidation of Joint Venture [Policy Text Block]

As a 65 percent owner, the Company will be required to consolidate 100 percent of the JV's assets, liabilities and results of operations and record the non-controlling partner's 35 percent interest beginning in the second quarter of 2013.

The condensed consolidating financial information below follows the same accounting policies as described in the consolidated financial statements, except for the use of the equity method of accounting to reflect ownership interests in wholly-owned subsidiaries, which are eliminated upon consolidation, and the allocation of certain expenses of Rayonier Inc. incurred for the benefit of its subsidiaries.

Segment Reporting, Policy [Policy Text Block]

Operating income (loss) as presented in the Consolidated Statements of Income and Comprehensive Income is equal to segment income (loss). Certain income (loss) items in the Consolidated Statements of Income and Comprehensive Income are not allocated to segments. These items, which include gains (losses) from certain asset dispositions, interest income (expense), miscellaneous income (expense) and income tax (expense) benefit, are not considered by management to be part of segment operations.

Fair Value of Financial Instruments [Policy Text Block]

Rayonier uses the following methods and assumptions in estimating the fair value of its financial instruments:

Cash and cash equivalents and Restricted cash — The carrying amount is equal to fair market value.

Debt — The fair value of fixed rate debt is based upon quoted market prices for debt with similar terms and maturities.

XML

Fair Value Measurements Fair Values Measured on Recurring Basis (Details) (USD $) In Thousands, unless otherwise specified					3 Months Ended					3 Months Ended
	Mar. 31, 2013 Fair Value, Measurements, Recurring [Member] Carrying Value	Dec. 31, 2012 Fair Value, Measurements, Recurring [Member] Carrying Value	Mar. 31, 2013 Fair Value, Measurements, Recurring [Member] Level 2	Dec. 31, 2012 Fair Value, Measurements, Recurring [Member] Level 2	Mar. 31, 2013 Variable Interest Entity, Not Primary Beneficiary [Member]	Mar. 31, 2013 Estimate of Fair Value, Fair Value Disclosure [Member] Fair Value, Inputs, Level 1 [Member]	Mar. 31, 2012 Estimate of Fair Value, Fair Value Disclosure [Member] Fair Value, Inputs, Level 1 [Member]	Mar. 31, 2013 Carrying Value	Mar. 31, 2012 Carrying Value	Mar. 31, 2013 Matariki joint venture step acquisition [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Joint venture, increase in ownership percentage										39.00%
Foreign Currency Contract, Asset, Fair Value Disclosure						$ 1,881	$ 0	$ 1,881	$ 0
Investment in special-purpose entity	$ 2,666	$ 2,671	$ 2,666	$ 2,671
Fair Value Measurements, Valuation Techniques					The fair value of the investment in the special-purpose entity is determined by summing the discounted value of future principal and interest payments Rayonier will receive from the special-purpose entity. The interest rate of a similar instrument is used to determine the discounted value of the payments.

XML

Income Taxes (Details) (USD $)	3 Months Ended		6 Months Ended	9 Months Ended	15 Months Ended	12 Months Ended		3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2014	Dec. 31, 2009 Alternative Fuel Mixture Credit [Member]	Dec. 31, 2009 Cellulosic Biofuel Producer Credit [Member]	Mar. 31, 2013 Exchange of Alternative Fuel Tax Benefit [Member]
Effective Tax Reconciliation [Line Items]
Income tax expense at federal statutory rate	$ 38,000,000	$ 25,000,000
U.S. federal statutory income tax rate	35.00%	35.00%
Tax Credit Amount per Gallon						0.50	1.01
Payment to exchange AFMC for CBPC	70,311,000	0
Gallons Exchanged	120000000
Income Tax Benefit								19,000,000
Deferred Other Tax Expense (Benefit)			(29,000,000)	(60,000,000)	(89,000,000)
REIT Income Not Subject to Tax	(11,000,000)	(5,000,000)
REIT Income Not Subject to Tax (Rate)	(10.10%)	(7.70%)
Other Reconciling Items	(2,000,000)	(1,000,000)
Other Reconciling Items (Rate)	(1.50%)	(0.80%)
Effective IncomeTax Continuing Operations Before Discrete Items	25,000,000	19,000,000
Effective Income Tax Rate Continuing Operations Before Discrete Items	23.40%	26.50%
Tax Credits CBPC for AFMC Exchange	(19,000,000)	0
Tax Credits CBPC for AFMC Exchange (Rate)	(17.50%)	0.00%
Other Adjustments	(2,000,000)	(1,000,000)
Other Adjustments (Rate)	(1.80%)	(0.70%)
Income Tax Expense as reported	4,445,000	18,303,000
Effective tax rate	4.10%	25.80%
Proceeds from Divestiture of Businesses	$80 million plus a working capital adjustment
Discontinued Operation, Tax Effect of Discontinued Operation	22,273,000	422,000
Discontinued Operation, Tax Effect of Income (Loss) from Disposal of Discontinued Operation	$ 21,400,000

XML

Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2013

Senior Exchangeable Notes due 2015 [Member] [Domain]

Condensed Financial Statements, Captions [Line Items]

Schedule of Condensed Consolidating Statement of Income and Comprehensive Income [Table Text Block]

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME  AND COMPREHENSIVE INCOME For the Three Months Ended March 31, 2013
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	—		$	393,719		$	—		$	393,719
Costs and Expenses
Cost of sales	—			—			—			266,018			—			266,018
Selling and general expenses	—			2,401			—			13,698			—			16,099
Other operating (income) expense, net	(1,881		)	523			—			(2,145		)	—			(3,503		)
	(1,881		)	2,924			—			277,571			—			278,614
Equity in income of New Zealand joint venture	—			—			—			258			—			258
OPERATING INCOME (LOSS)	1,881			(2,924		)	—			116,406			—			115,363
Interest (expense) income	(3,275		)	(252		)	(6,618		)	2,428			—			(7,717		)
Interest and miscellaneous income (expense), net	2,419			529			(751		)	(2,140		)	—			57
Equity in income from subsidiaries	146,710			148,765			123,469			—			(418,944		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	147,735			146,118			116,100			116,694			(418,944		)	107,703
Income tax benefit (expense)	—			592			2,690			(7,727		)	—			(4,445		)
INCOME FROM CONTINUING OPERATIONS	147,735			146,710			118,790			108,967			(418,944		)	103,258
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income taxes	—			—			—			44,477			—			44,477
NET INCOME	147,735			146,710			118,790			153,444			(418,944		)	147,735
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	975			975			240			975			(2,190		)	975
New Zealand joint venture cash flow hedges	554			554			—			554			(1,108		)	554
Gain from pension and postretirement plans, net of income tax	4,969			4,969			4,012			—			(8,981		)	4,969
Total other comprehensive income	6,498			6,498			4,252			1,529			(12,279		)	6,498
COMPREHENSIVE INCOME	$	154,233		$	153,208		$	123,042		$	154,973		$	(431,223	)	$	154,233

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended March 31, 2012
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	—		$	336,571		$	—		$	336,571
Costs and Expenses
Cost of sales	—			—			—			235,708			—			235,708
Selling and general expenses	—			3,311			—			15,954			—			19,265
Other operating expense (income), net	—			121			—			(1,260		)	—			(1,139		)
	—			3,432			—			250,402			—			253,834
Equity in income of New Zealand joint venture	—			—			—			13			—			13
OPERATING (LOSS) INCOME	—			(3,432		)	—			86,182			—			82,750
Interest expense	(1,249		)	(238		)	(10,226		)	(112		)	—			(11,825		)
Interest and miscellaneous income (expense), net	1,912			1,327			(1,208		)	(2,054		)	—			(23		)
Equity in income from subsidiaries	52,774			55,446			45,745			—			(153,965		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	53,437			53,103			34,311			84,016			(153,965		)	70,902
Income tax (expense) benefit	—			(329		)	4,174			(22,148		)	—			(18,303		)
INCOME FROM CONTINUING OPERATIONS	53,437			52,774			38,485			61,868			(153,965		)	52,599
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income tax	—			—			—			838			—			838
NET INCOME	53,437			52,774			38,485			62,706			(153,965		)	53,437
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	5,825			5,825			(102		)	5,825			(11,548		)	5,825
New Zealand joint venture cash flow hedges	1,205			1,205			—			1,205			(2,410		)	1,205
Gain from pension and postretirement plans, net of income tax	3,140			3,140			2,380			2,380			(7,900		)	3,140
Total other comprehensive income	10,170			10,170			2,278			9,410			(21,858		)	10,170
COMPREHENSIVE INCOME	$	63,607		$	62,944		$	40,763		$	72,116		$	(175,823	)	$	63,607

Schedule of Condensed Consolidating Balance Sheets [Table Text Block]

	CONDENSED CONSOLIDATING BALANCE SHEETS As of March 31, 2013
	Rayonier Inc. (Parent Guarantor)		ROC (Subsidiary Guarantor)		Rayonier TRS Holdings Inc. (Issuer)		Non- guarantors		Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	151,978	$	20,930	$	31,749	$	61,360	$	—		$	266,017
Accounts receivable, less allowance for doubtful accounts	27		7		478		105,181		—			105,693
Inventory	—		—		—		113,643		—			113,643
Deferred tax assets	—		—		—		66,509		—			66,509
Prepaid and other current assets	—		3,618		629		34,649		—			38,896
Total current assets	152,005		24,555		32,856		381,342		—			590,758
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		—		1,565,782		—			1,565,782
NET PROPERTY, PLANT AND EQUIPMENT	—		2,315		—		757,923		—			760,238
INVESTMENT IN JOINT VENTURE	—		—		—		73,830		—			73,830
INVESTMENT IN SUBSIDIARIES	1,599,115		1,827,667		1,486,647		—		(4,913,429		)	—
INTERCOMPANY NOTES RECEIVABLE	215,140		—		20,021		—		(235,161		)	—
OTHER ASSETS	4,042		28,086		4,826		174,723		—			211,677
TOTAL ASSETS	$	1,970,302	$	1,882,623	$	1,544,350	$	2,953,600	$	(5,148,590	)	$	3,202,285
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	1,463	$	222	$	106,808	$	—		$	108,493
Current maturities of long-term debt	50,000		—		—		—		—			50,000
Accrued taxes	—		14		—		30,045		—			30,059
Accrued payroll and benefits	—		8,578		—		9,893		—			18,471
Accrued interest	6,112		484		3,695		909		—			11,200
Accrued customer incentives	—		—		—		8,936		—			8,936
Other current liabilities	—		3,245		—		21,923		—			25,168
Current liabilities for dispositions and discontinued operations	—		—		—		8,398		—			8,398
Total current liabilities	56,112		13,784		3,917		186,912		—			260,725
LONG-TERM DEBT	375,000		—		698,916		76,555		—			1,150,471
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		—		71,799		—			71,799
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		129,743		—		29,086		—			158,829
OTHER NON-CURRENT LIABILITIES	—		14,007		—		7,264		—			21,271
INTERCOMPANY PAYABLE	—		125,974		—		168,076		(294,050		)	—
TOTAL SHAREHOLDERS’ EQUITY	1,539,190		1,599,115		841,517		2,413,908		(4,854,540		)	1,539,190
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,970,302	$	1,882,623	$	1,544,350	$	2,953,600	$	(5,148,590	)	$	3,202,285

	CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2012
	Rayonier Inc. (Parent Guarantor)		ROC (Subsidiary Guarantor)		Rayonier TRS Holdings Inc. (Issuer)		Non- guarantors		Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	252,888	$	3,966	$	19,358	$	4,384	$	—		$	280,596
Accounts receivable, less allowance for doubtful accounts	—		386		—		99,973		—			100,359
Inventory	—		—		—		127,966		—			127,966
Deferred tax assets	—		—		—		15,845		—			15,845
Prepaid and other current assets	—		1,566		691		39,251		—			41,508
Total current assets	252,888		5,918		20,049		287,419		—			566,274
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		—		1,573,309		—			1,573,309
NET PROPERTY, PLANT AND EQUIPMENT	—		2,321		—		704,717		—			707,038
INVESTMENT IN JOINT VENTURE	—		—		—		72,419		—			72,419
INVESTMENT IN SUBSIDIARIES	1,445,205		1,677,782		1,452,027		—		(4,575,014		)	—
INTERCOMPANY NOTES RECEIVABLE	213,863		14,000		19,831		—		(247,694		)	—
OTHER ASSETS	4,148		27,779		5,182		166,802		—			203,911
TOTAL ASSETS	$	1,916,104	$	1,727,800	$	1,497,089	$	2,804,666	$	(4,822,708	)	$	3,122,951
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	2,099	$	33	$	68,249	$	—		$	70,381
Current maturities of long-term debt	150,000		—		—		—		—			150,000
Accrued taxes	—		485		—		13,339		—			13,824
Accrued payroll and benefits	—		15,044		—		13,024		—			28,068
Accrued interest	3,100		379		3,197		1,280		—			7,956
Accrued customer incentives	—		—		—		10,849		—			10,849
Other current liabilities	—		2,925		—		15,715		—			18,640
Current liabilities for dispositions and discontinued operations	—		—		—		8,105		—			8,105
Total current liabilities	153,100		20,932		3,230		130,561		—			307,823
LONG-TERM DEBT	325,000		—		718,321		76,731		—			1,120,052
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		—		73,590		—			73,590
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		129,156		—		30,426		—			159,582
OTHER NON-CURRENT LIABILITIES	—		16,432		—		7,468		—			23,900
INTERCOMPANY PAYABLE	—		116,075		—		137,797		(253,872		)	—
TOTAL SHAREHOLDERS’ EQUITY	1,438,004		1,445,205		775,538		2,348,093		(4,568,836		)	1,438,004
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,916,104	$	1,727,800	$	1,497,089	$	2,804,666	$	(4,822,708	)	$	3,122,951

Schedule of Condensed Consolidating Statements of Cash Flows [Table Text Block]

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2013
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	13,984		$	22,259		$	—		$	58,980		$	(5,563	)	$	89,660
INVESTING ACTIVITIES
Capital expenditures	—			(89		)	—			(32,575		)	—			(32,664		)
Purchase of timberlands	—			—			—			(1,560		)	—			(1,560		)
Jesup mill cellulose specialties expansion	—			—			—			(36,734		)	—			(36,734		)
Proceeds from the disposition of Wood Products business	—			—			—			83,741			—			83,741
Change in restricted cash	—			—			—			9,908			—			9,908
Investment in Subsidiaries	—			—			32,391			—			(32,391		)	—
Other	—			—			—			1,790			—			1,790
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	—			(89		)	32,391			24,570			(32,391		)	24,481
FINANCING ACTIVITIES
Issuance of debt	100,000			—			—			—			—			100,000
Repayment of debt	(150,000		)	—			(20,000		)	—			—			(170,000		)
Dividends paid	(57,744		)	—			—			—			—			(57,744		)
Proceeds from the issuance of common shares	4,091			—			—			—			—			4,091
Excess tax benefits on stock-based compensation	—			—			—			6,191			—			6,191
Repurchase of common shares	(11,241		)	—			—			—			—			(11,241		)
Intercompany distributions	—			(5,206		)	—			(32,748		)	37,954			—
CASH USED FOR FINANCING ACTIVITIES	(114,894		)	(5,206		)	(20,000		)	(26,557		)	37,954			(128,703		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			—			(17		)	—			(17		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(100,910		)	16,964			12,391			56,976			—			(14,579		)
Balance, beginning of year	252,888			3,966			19,358			4,384			—			280,596
Balance, end of period	$	151,978		$	20,930		$	31,749		$	61,360		$	—		$	266,017

	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)			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES	$	(14,838	)	$	33,980		$	12,000		$	105,616		$	(25,404	)	$	111,354
INVESTING ACTIVITIES
Capital expenditures	—			(55		)	—			(42,024		)	—			(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		)	—			8,805			—			8,736
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	—			(124		)	774			(73,543		)	(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		)	(29,016		)	26,178			—
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	146,464			(15,162		)	(12,000		)	(25,070		)	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			6,878			—			157,972
Balance, beginning of year	—			8,977			59,976			9,650			—			78,603
Balance, end of period	$	131,626		$	27,671		$	60,750		$	16,528		$	—		$	236,575

Senior Notes due 2022 at a fixed interest rate of 3.75% [Member]

Condensed Financial Statements, Captions [Line Items]

Schedule of Condensed Consolidating Statement of Income and Comprehensive Income [Table Text Block]

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended March 31, 2013
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	393,719		$	—		$	393,719
Costs and Expenses
Cost of sales	—			—			266,018			—			266,018
Selling and general expenses	—			2,401			13,698			—			16,099
Other operating (income) expense, net	(1,881		)	523			(2,145		)	—			(3,503		)
	(1,881		)	2,924			277,571			—			278,614
Equity in income of New Zealand joint venture	—			—			258			—			258
OPERATING INCOME (LOSS)	1,881			(2,924		)	116,406			—			115,363
Interest (expense) benefit	(3,275		)	(6,870		)	2,428			—			(7,717		)
Interest and miscellaneous income (expense), net	2,419			(222		)	(2,140		)	—			57
Equity in income from subsidiaries	146,710			153,444			—			(300,154		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	147,735			143,428			116,694			(300,154		)	107,703
Income tax expense (benefit)	—			3,282			(7,727		)	—			(4,445		)
INCOME FROM CONTINUING OPERATIONS	147,735			146,710			108,967			(300,154		)	103,258
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income taxes	—			—			44,477			—			44,477
NET INCOME	147,735			146,710			153,444			(300,154		)	147,735
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	975			975			975			(1,950		)	975
New Zealand joint venture cash flow hedges	554			554			554			(1,108		)	554
Gain from pension and postretirement plans, net of income tax	4,969			4,969			—			(4,969		)	4,969
Total other comprehensive income	6,498			6,498			1,529			(8,027		)	6,498
COMPREHENSIVE INCOME	$	154,233		$	153,208		$	154,973		$	(308,181	)	$	154,233

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended March 31, 2012
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	336,571		$	—		$	336,571
Costs and Expenses
Cost of sales	—			—			235,708			—			235,708
Selling and general expenses	—			3,311			15,954			—			19,265
Other operating expense (income), net	—			121			(1,260		)	—			(1,139		)
	—			3,432			250,402			—			253,834
Equity in income of New Zealand joint venture	—			—			13			—			13
OPERATING (EXPENSE) INCOME	—			(3,432		)	86,182			—			82,750
Interest expense	(1,249		)	(10,464		)	(112		)	—			(11,825		)
Interest and miscellaneous income (expense), net	1,912			119			(2,054		)	—			(23		)
Equity in income from subsidiaries	52,774			62,706			—			(115,480		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	53,437			48,929			84,016			(115,480		)	70,902
Income tax benefit (expense)	—			3,845			(22,148		)	—			(18,303		)
INCOME FROM CONTINUING OPERATIONS	53,437			52,774			61,868			(115,480		)	52,599
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income taxes	—			—			838			—			838
NET INCOME	53,437			52,774			62,706			(115,480		)	53,437
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	5,825			5,825			5,825			(11,650		)	5,825
New Zealand joint venture cash flow hedges	1,205			1,205			1,205			(2,410		)	1,205
Gain from pension and postretirement plans, net of income tax	3,140			3,140			2,380			(5,520		)	3,140
Total other comprehensive income	10,170			10,170			9,410			(19,580		)	10,170
COMPREHENSIVE INCOME	$	63,607		$	62,944		$	72,116		$	(135,060	)	$	63,607

Schedule of Condensed Consolidating Balance Sheets [Table Text Block]

	CONDENSED CONSOLIDATING BALANCE SHEETS As of March 31, 2013
	Rayonier Inc. (Parent Issuer)		Subsidiary Guarantors		Non- guarantors		Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	151,978	$	52,679	$	61,360	$	—		$	266,017
Accounts receivable, less allowance for doubtful accounts	27		485		105,181		—			105,693
Inventory	—		—		113,643		—			113,643
Deferred tax asset	—		—		66,509		—			66,509
Prepaid and other current assets	—		4,247		34,649		—			38,896
Total current assets	152,005		57,411		381,342		—			590,758
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		1,565,782		—			1,565,782
NET PROPERTY, PLANT AND EQUIPMENT	—		2,315		757,923		—			760,238
INVESTMENT IN JOINT VENTURE	—		—		73,830		—			73,830
INVESTMENT IN SUBSIDIARIES	1,599,115		2,472,796		—		(4,071,911		)	—
INTERCOMPANY NOTES RECEIVABLE	215,140		20,021		—		(235,161		)	—
OTHER ASSETS	4,042		32,912		174,723		—			211,677
TOTAL ASSETS	$	1,970,302	$	2,585,455	$	2,953,600	$	(4,307,072	)	$	3,202,285
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	1,685	$	106,808	$	—		$	108,493
Current maturities of long-term debt	50,000		—		—		—			50,000
Accrued taxes	—		14		30,045		—			30,059
Accrued payroll and benefits	—		8,578		9,893		—			18,471
Accrued interest	6,112		4,179		909		—			11,200
Accrued customer incentives	—		—		8,936		—			8,936
Other current liabilities	—		3,245		21,923		—			25,168
Current liabilities for dispositions and discontinued operations	—		—		8,398		—			8,398
Total current liabilities	56,112		17,701		186,912		—			260,725
LONG-TERM DEBT	375,000		698,916		76,555		—			1,150,471
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		71,799		—			71,799
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		129,743		29,086		—			158,829
OTHER NON-CURRENT LIABILITIES	—		14,007		7,264		—			21,271
INTERCOMPANY PAYABLE	—		125,973		168,076		(294,049		)	—
TOTAL SHAREHOLDERS’ EQUITY	1,539,190		1,599,115		2,413,908		(4,013,023		)	1,539,190
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,970,302	$	2,585,455	$	2,953,600	$	(4,307,072	)	$	3,202,285

	CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2012
	Rayonier Inc. (Parent Issuer)		Subsidiary Guarantors		Non- guarantors		Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	252,888	$	23,324	$	4,384	$	—		$	280,596
Accounts receivable, less allowance for doubtful accounts	—		386		99,973		—			100,359
Inventory	—		—		127,966		—			127,966
Deferred tax assets	—		—		15,845		—			15,845
Prepaid and other current assets	—		2,257		39,251		—			41,508
Total current assets	252,888		25,967		287,419		—			566,274
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		1,573,309		—			1,573,309
NET PROPERTY, PLANT AND EQUIPMENT	—		2,321		704,717		—			707,038
INVESTMENT IN JOINT VENTURE	—		—		72,419		—			72,419
INVESTMENT IN SUBSIDIARIES	1,445,205		2,354,270		—		(3,799,475		)	—
INTERCOMPANY NOTES RECEIVABLE	213,863		33,831		—		(247,694		)	—
OTHER ASSETS	4,148		32,961		166,802		—			203,911
TOTAL ASSETS	$	1,916,104	$	2,449,350	$	2,804,666	$	(4,047,169	)	$	3,122,951
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	2,132	$	68,249	$	—		$	70,381
Current maturities of long-term debt	150,000		—		—		—			150,000
Accrued taxes	—		485		13,339		—			13,824
Accrued payroll and benefits	—		15,044		13,024		—			28,068
Accrued interest	3,100		3,576		1,280		—			7,956
Accrued customer incentives	—		—		10,849		—			10,849
Other current liabilities	—		2,925		15,715		—			18,640
Current liabilities for dispositions and discontinued operations	—		—		8,105		—			8,105
Total current liabilities	153,100		24,162		130,561		—			307,823
LONG-TERM DEBT	325,000		718,321		76,731		—			1,120,052
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		73,590		—			73,590
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		129,156		30,426		—			159,582
OTHER NON-CURRENT LIABILITIES	—		16,432		7,468		—			23,900
INTERCOMPANY PAYABLE	—		116,074		137,797		(253,871		)	—
TOTAL SHAREHOLDERS’ EQUITY	1,438,004		1,445,205		2,348,093		(3,793,298		)	1,438,004
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,916,104	$	2,449,350	$	2,804,666	$	(4,047,169	)	$	3,122,951

Schedule of Condensed Consolidating Statements of Cash Flows [Table Text Block]

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2013
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	13,984		$	22,259		$	58,980		$	(5,563	)	$	89,660
INVESTING ACTIVITIES
Capital expenditures	—			(89		)	(32,575		)	—			(32,664		)
Purchase of timberlands	—			—			(1,560		)	—			(1,560		)
Jesup mill cellulose specialties expansion	—			—			(36,734		)	—			(36,734		)
Proceeds from the disposition of Wood Products business	—			—			83,741			—			83,741
Change in restricted cash	—			—			9,908			—			9,908
Investment in Subsidiaries	—			32,391			—			(32,391		)	—
Other	—			—			1,790			—			1,790
CASH PROVIDED BY INVESTING ACTIVITIES	—			32,302			24,570			(32,391		)	24,481
FINANCING ACTIVITIES
Issuance of debt	100,000			—			—			—			100,000
Repayment of debt	(150,000		)	(20,000		)	—			—			(170,000		)
Dividends paid	(57,744		)	—			—			—			(57,744		)
Proceeds from the issuance of common shares	4,091			—			—			—			4,091
Excess tax benefits on stock-based compensation	—			—			6,191			—			6,191
Repurchase of common shares	(11,241		)	—			—			—			(11,241		)
Intercompany distributions	—			(5,206		)	(32,748		)	37,954			—
CASH USED FOR FINANCING ACTIVITIES	(114,894		)	(25,206		)	(26,557		)	37,954			(128,703		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			(17		)	—			(17		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(100,910		)	29,355			56,976			—			(14,579		)
Balance, beginning of year	252,888			23,324			4,384			—			280,596
Balance, end of period	$	151,978		$	52,679		$	61,360		$	—		$	266,017

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2012
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES	$	(14,838	)	$	33,980		$	105,616		$	(13,404	)	$	111,354
INVESTING ACTIVITIES
Capital expenditures	—			(55		)	(42,024		)	—			(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		)	8,805			—			8,736
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	—			650			(73,543		)	(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			(29,016		)	14,178			—
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	146,464			(15,162		)	(25,070		)	14,178			120,410
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			(125		)	—			(125		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	131,626			19,468			6,878			—			157,972
Balance, beginning of year	—			68,953			9,650			—			78,603
Balance, end of period	$	131,626		$	88,421		$	16,528		$	—		$	236,575

XML

Liabilities for Dispositions and Discontinued Operations Analysis of Activity (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2013	Dec. 31, 2012
Accrual for Environmental Loss Contingencies [Roll Forward]
Balance, beginning of period	$ 81,695	$ 90,824
Expenditures charged to liabilities	(1,631)	(9,926)
Increase to liabilities	133	797
Balance, end of period	80,197	81,695
Less: Current portion	(8,398)	(8,105)
Non-current portion	$ 71,799	$ 73,590

XML

Consolidating Financial Statements Condensed Consolidating Balance Sheets (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012	Mar. 31, 2012	Dec. 31, 2011
CURRENT ASSETS
Cash and cash equivalents	$ 266,017	$ 280,596	$ 236,575	$ 78,603
Accounts receivable, less allowance for doubtful accounts	105,693	100,359
Inventory	113,643	127,966
Deferred Tax Assets, Net, Current	66,509	15,845
Prepaid and other current assets	38,896	41,508
Total current assets	590,758	566,274
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	1,565,782	1,573,309
NET PROPERTY, PLANT AND EQUIPMENT	760,238	707,038
INVESTMENT IN JOINT VENTURE	73,830	72,419
INVESTMENT IN SUBSIDIARIES	0	0
INTERCOMPANY NOTES RECEIVABLE	0	0
OTHER ASSETS	211,677	203,911
TOTAL ASSETS	3,202,285	3,122,951
CURRENT LIABILITIES
Accounts payable	108,493	70,381
Current maturities of long-term debt	50,000	150,000
Accrued taxes	30,059	13,824
Accrued payroll and benefits	18,471	28,068
Accrued interest	11,200	7,956
Accrued customer incentives	8,936	10,849
Other current liabilities	25,168	18,640
Current liabilities for dispositions and discontinued operations	8,398	8,105
Total current liabilities	260,725	307,823
LONG-TERM DEBT	1,150,471	1,120,052
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	71,799	73,590
PENSION AND OTHER POSTRETIREMENT BENEFITS	158,829	159,582
OTHER NON-CURRENT LIABILITIES	21,271	23,900
INTERCOMPANY PAYABLE	0	0
TOTAL SHAREHOLDERS' EQUITY	1,539,190	1,438,004		1,323,073
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	3,202,285	3,122,951
Parent Company [Member]
CURRENT ASSETS
Cash and cash equivalents	151,978	252,888	131,626	0
Accounts receivable, less allowance for doubtful accounts	27	0
Inventory	0	0
Deferred Tax Assets, Net, Current	0	0
Prepaid and other current assets	0	0
Total current assets	152,005	252,888
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	0	0
NET PROPERTY, PLANT AND EQUIPMENT	0	0
INVESTMENT IN JOINT VENTURE	0	0
INVESTMENT IN SUBSIDIARIES	1,599,115	1,445,205
INTERCOMPANY NOTES RECEIVABLE	215,140	213,863
OTHER ASSETS	4,042	4,148
TOTAL ASSETS	1,970,302	1,916,104
CURRENT LIABILITIES
Accounts payable	0	0
Current maturities of long-term debt	50,000	150,000
Accrued taxes	0	0
Accrued payroll and benefits	0	0
Accrued interest	6,112	3,100
Accrued customer incentives	0	0
Other current liabilities	0	0
Current liabilities for dispositions and discontinued operations	0	0
Total current liabilities	56,112	153,100
LONG-TERM DEBT	375,000	325,000
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	0	0
PENSION AND OTHER POSTRETIREMENT BENEFITS	0	0
OTHER NON-CURRENT LIABILITIES	0	0
INTERCOMPANY PAYABLE	0	0
TOTAL SHAREHOLDERS' EQUITY	1,539,190	1,438,004
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	1,970,302	1,916,104
Senior Exchangeable Notes due 2015 [Member] [Domain] | Guarantor Subsidiaries [Member]
CURRENT ASSETS
Cash and cash equivalents	20,930	3,966	27,671	8,977
Accounts receivable, less allowance for doubtful accounts	7	386
Inventory	0	0
Deferred Tax Assets, Net, Current	0	0
Prepaid and other current assets	3,618	1,566
Total current assets	24,555	5,918
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	0	0
NET PROPERTY, PLANT AND EQUIPMENT	2,315	2,321
INVESTMENT IN JOINT VENTURE	0	0
INVESTMENT IN SUBSIDIARIES	1,827,667	1,677,782
INTERCOMPANY NOTES RECEIVABLE	0	14,000
OTHER ASSETS	28,086	27,779
TOTAL ASSETS	1,882,623	1,727,800
CURRENT LIABILITIES
Accounts payable	1,463	2,099
Current maturities of long-term debt	0	0
Accrued taxes	14	485
Accrued payroll and benefits	8,578	15,044
Accrued interest	484	379
Accrued customer incentives	0	0
Other current liabilities	3,245	2,925
Current liabilities for dispositions and discontinued operations	0	0
Total current liabilities	13,784	20,932
LONG-TERM DEBT	0	0
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	0	0
PENSION AND OTHER POSTRETIREMENT BENEFITS	129,743	129,156
OTHER NON-CURRENT LIABILITIES	14,007	16,432
INTERCOMPANY PAYABLE	125,974	116,075
TOTAL SHAREHOLDERS' EQUITY	1,599,115	1,445,205
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	1,882,623	1,727,800
Senior Exchangeable Notes due 2015 [Member] [Domain] | Subsidiary Issuer [Member]
CURRENT ASSETS
Cash and cash equivalents	31,749	19,358	60,750	59,976
Accounts receivable, less allowance for doubtful accounts	478	0
Inventory	0	0
Deferred Tax Assets, Net, Current	0	0
Prepaid and other current assets	629	691
Total current assets	32,856	20,049
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	0	0
NET PROPERTY, PLANT AND EQUIPMENT	0	0
INVESTMENT IN JOINT VENTURE	0	0
INVESTMENT IN SUBSIDIARIES	1,486,647	1,452,027
INTERCOMPANY NOTES RECEIVABLE	20,021	19,831
OTHER ASSETS	4,826	5,182
TOTAL ASSETS	1,544,350	1,497,089
CURRENT LIABILITIES
Accounts payable	222	33
Current maturities of long-term debt	0	0
Accrued taxes	0	0
Accrued payroll and benefits	0	0
Accrued interest	3,695	3,197
Accrued customer incentives	0	0
Other current liabilities	0	0
Current liabilities for dispositions and discontinued operations	0	0
Total current liabilities	3,917	3,230
LONG-TERM DEBT	698,916	718,321
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	0	0
PENSION AND OTHER POSTRETIREMENT BENEFITS	0	0
OTHER NON-CURRENT LIABILITIES	0	0
INTERCOMPANY PAYABLE	0	0
TOTAL SHAREHOLDERS' EQUITY	841,517	775,538
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	1,544,350	1,497,089
Senior Exchangeable Notes due 2015 [Member] [Domain] | Non-Guarantor Subsidiaries [Member]
CURRENT ASSETS
Cash and cash equivalents			16,528	9,650
Accounts receivable, less allowance for doubtful accounts	105,181	99,973
Inventory	113,643	127,966
Deferred Tax Assets, Net, Current	66,509	15,845
Prepaid and other current assets	34,649	39,251
Total current assets	381,342	287,419
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	1,565,782	1,573,309
NET PROPERTY, PLANT AND EQUIPMENT	757,923	704,717
INVESTMENT IN JOINT VENTURE	73,830	72,419
INVESTMENT IN SUBSIDIARIES	0	0
INTERCOMPANY NOTES RECEIVABLE	0	0
OTHER ASSETS	174,723	166,802
TOTAL ASSETS	2,953,600	2,804,666
CURRENT LIABILITIES
Accounts payable	106,808	68,249
Current maturities of long-term debt	0	0
Accrued taxes	30,045	13,339
Accrued payroll and benefits	9,893	13,024
Accrued interest	909	1,280
Accrued customer incentives	8,936	10,849
Other current liabilities	21,923	15,715
Current liabilities for dispositions and discontinued operations	8,398	8,105
Total current liabilities	186,912	130,561
LONG-TERM DEBT	76,555	76,731
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	71,799	73,590
PENSION AND OTHER POSTRETIREMENT BENEFITS	29,086	30,426
OTHER NON-CURRENT LIABILITIES	7,264	7,468
INTERCOMPANY PAYABLE	168,076	137,797
TOTAL SHAREHOLDERS' EQUITY	2,413,908	2,348,093
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	2,953,600	2,804,666
Senior Exchangeable Notes due 2015 [Member] [Domain] | Consolidation, Eliminations [Member]
CURRENT ASSETS
Cash and cash equivalents	0	0	0	0
Accounts receivable, less allowance for doubtful accounts	0	0
Inventory	0	0
Deferred Tax Assets, Net, Current	0	0
Prepaid and other current assets	0	0
Total current assets	0	0
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	0	0
NET PROPERTY, PLANT AND EQUIPMENT	0	0
INVESTMENT IN JOINT VENTURE	0	0
INVESTMENT IN SUBSIDIARIES	(4,913,429)	(4,575,014)
INTERCOMPANY NOTES RECEIVABLE	(235,161)	(247,694)
OTHER ASSETS	0	0
TOTAL ASSETS	(5,148,590)	(4,822,708)
CURRENT LIABILITIES
Accounts payable	0	0
Current maturities of long-term debt	0	0
Accrued taxes	0	0
Accrued payroll and benefits	0	0
Accrued interest	0	0
Accrued customer incentives	0	0
Other current liabilities	0	0
Current liabilities for dispositions and discontinued operations	0	0
Total current liabilities	0	0
LONG-TERM DEBT	0	0
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	0	0
PENSION AND OTHER POSTRETIREMENT BENEFITS	0	0
OTHER NON-CURRENT LIABILITIES	0	0
INTERCOMPANY PAYABLE	(294,050)	(253,872)
TOTAL SHAREHOLDERS' EQUITY	(4,854,540)	(4,568,836)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	(5,148,590)	(4,822,708)
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | Guarantor Subsidiaries [Member]
CURRENT ASSETS
Cash and cash equivalents	52,679	23,324	88,421	68,953
Accounts receivable, less allowance for doubtful accounts	485	386
Inventory	0	0
Deferred Tax Assets, Net, Current	0	0
Prepaid and other current assets	4,247	2,257
Total current assets	57,411	25,967
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	0	0
NET PROPERTY, PLANT AND EQUIPMENT	2,315	2,321
INVESTMENT IN JOINT VENTURE	0	0
INVESTMENT IN SUBSIDIARIES	2,472,796	2,354,270
INTERCOMPANY NOTES RECEIVABLE	20,021	33,831
OTHER ASSETS	32,912	32,961
TOTAL ASSETS	2,585,455	2,449,350
CURRENT LIABILITIES
Accounts payable	1,685	2,132
Current maturities of long-term debt	0	0
Accrued taxes	14	485
Accrued payroll and benefits	8,578	15,044
Accrued interest	4,179	3,576
Accrued customer incentives	0	0
Other current liabilities	3,245	2,925
Current liabilities for dispositions and discontinued operations	0	0
Total current liabilities	17,701	24,162
LONG-TERM DEBT	698,916	718,321
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	0	0
PENSION AND OTHER POSTRETIREMENT BENEFITS	129,743	129,156
OTHER NON-CURRENT LIABILITIES	14,007	16,432
INTERCOMPANY PAYABLE	125,973	116,074
TOTAL SHAREHOLDERS' EQUITY	1,599,115	1,445,205
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	2,585,455	2,449,350
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | Non-Guarantor Subsidiaries [Member]
CURRENT ASSETS
Cash and cash equivalents	61,360	4,384	16,528	9,650
Accounts receivable, less allowance for doubtful accounts	105,181	99,973
Inventory	113,643	127,966
Deferred Tax Assets, Net, Current	66,509	15,845
Prepaid and other current assets	34,649	39,251
Total current assets	381,342	287,419
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	1,565,782	1,573,309
NET PROPERTY, PLANT AND EQUIPMENT	757,923	704,717
INVESTMENT IN JOINT VENTURE	73,830	72,419
INVESTMENT IN SUBSIDIARIES	0	0
INTERCOMPANY NOTES RECEIVABLE	0	0
OTHER ASSETS	174,723	166,802
TOTAL ASSETS	2,953,600	2,804,666
CURRENT LIABILITIES
Accounts payable	106,808	68,249
Current maturities of long-term debt	0	0
Accrued taxes	30,045	13,339
Accrued payroll and benefits	9,893	13,024
Accrued interest	909	1,280
Accrued customer incentives	8,936	10,849
Other current liabilities	21,923	15,715
Current liabilities for dispositions and discontinued operations	8,398	8,105
Total current liabilities	186,912	130,561
LONG-TERM DEBT	76,555	76,731
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	71,799	73,590
PENSION AND OTHER POSTRETIREMENT BENEFITS	29,086	30,426
OTHER NON-CURRENT LIABILITIES	7,264	7,468
INTERCOMPANY PAYABLE	168,076	137,797
TOTAL SHAREHOLDERS' EQUITY	2,413,908	2,348,093
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	2,953,600	2,804,666
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | Consolidation, Eliminations [Member]
CURRENT ASSETS
Cash and cash equivalents	0	0	0	0
Accounts receivable, less allowance for doubtful accounts	0	0
Inventory	0	0
Deferred Tax Assets, Net, Current	0	0
Prepaid and other current assets	0	0
Total current assets	0	0
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	0	0
NET PROPERTY, PLANT AND EQUIPMENT	0	0
INVESTMENT IN JOINT VENTURE	0	0
INVESTMENT IN SUBSIDIARIES	(4,071,911)	(3,799,475)
INTERCOMPANY NOTES RECEIVABLE	(235,161)	(247,694)
OTHER ASSETS	0	0
TOTAL ASSETS	(4,307,072)	(4,047,169)
CURRENT LIABILITIES
Accounts payable	0	0
Current maturities of long-term debt	0	0
Accrued taxes	0	0
Accrued payroll and benefits	0	0
Accrued interest	0	0
Accrued customer incentives	0	0
Other current liabilities	0	0
Current liabilities for dispositions and discontinued operations	0	0
Total current liabilities	0	0
LONG-TERM DEBT	0	0
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	0	0
PENSION AND OTHER POSTRETIREMENT BENEFITS	0	0
OTHER NON-CURRENT LIABILITIES	0	0
INTERCOMPANY PAYABLE	(294,049)	(253,871)
TOTAL SHAREHOLDERS' EQUITY	(4,013,023)	(3,793,298)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ (4,307,072)	$ (4,047,169)

XML

Segment and Geographical Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013		Mar. 31, 2012		Dec. 31, 2012
Segment Reporting Information [Line Items]
Assets	$ 3,202,285				$ 3,122,951
Sales	393,719		336,571
Operating Income (Loss)	115,363		82,750
Depreciation, depletion and amortization	35,992		30,413
Forest Resources [Member]
Segment Reporting Information [Line Items]
Assets	1,722,413				1,690,030
Sales	57,102		52,195
Operating Income (Loss)	13,255		8,005
Depreciation, depletion and amortization	16,444		16,833
Real Estate Segment [Member]
Segment Reporting Information [Line Items]
Assets	102,374				112,647
Sales	24,297		12,647
Operating Income (Loss)	16,842		6,478
Depreciation, depletion and amortization	4,177		1,845
Performance Fibers Segment [Member]
Segment Reporting Information [Line Items]
Assets	973,786				902,309
Sales	284,188		250,855
Operating Income (Loss)	91,670		80,630
Depreciation, depletion and amortization	15,153		11,361
Wood Products Segment [Member]
Segment Reporting Information [Line Items]
Assets	0	[1]			18,454	[1]
All Other Segments [Member]
Segment Reporting Information [Line Items]
Assets	31,238				23,296
Sales	28,227		21,140
Operating Income (Loss)	165		(931)
Intersegment Elimination [Member]
Segment Reporting Information [Line Items]
Sales	(95)	[2]	(266)	[2]
Unallocated Amount to Segment [Member]
Segment Reporting Information [Line Items]
Assets	372,474				376,215
Operating Income (Loss)	(6,569)		(11,432)
All Other Segments And Unallocated Amount To Segment [Member]
Segment Reporting Information [Line Items]
Depreciation, depletion and amortization	$ 218		$ 374

[1] The Company sold its Wood Products segment during the first quarter of 2013. See Note 2 — Sale of Wood Products Business for additional information.

[2] )Intersegment eliminations primarily reflect sales from our Forest Resources segment to our Performance Fibers segme

XML

Sale of Wood Products Business (Notes)

3 Months Ended

Mar. 31, 2013

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

2. SALE OF WOOD PRODUCTS BUSINESS

On March 1, 2013, Rayonier completed the previously announced sale of its Wood Products business (consisting of three lumber mills in Baxley, Swainsboro and Eatonton, Georgia) to International Forest Products Limited (“Interfor”) for $80 million plus a working capital adjustment. The sale is consistent with the Company's strategic plan to fully position its manufacturing operations in the specialty chemicals sector. Rayonier will not have significant continuing involvement in the operations of the Wood Products business. Accordingly, the operating results of the Wood Products business, formerly reported as a separate operating segment, are classified as discontinued operations in the Company's Consolidated Statements of Income and Comprehensive Income for all periods presented. Certain administrative and general costs historically allocated to the Wood Products segment, which will remain with the Company after the sale, are reported in continuing operations.

Rayonier recognized an after-tax gain of $42.7 million on the sale. The gain is included in "Income from discontinued operations, net" on the Consolidated Statements of Income and Comprehensive Income for the period ended March 31, 2013.

The following table summarizes the operating results of the Company's discontinued operations and the related gain for the periods ended March 31, 2013 and 2012, as presented in "Income from discontinued operations, net" in the Consolidated Statements of Income and Comprehensive Income:

	Three Months Ended March 31,
	2013			2012
Sales	$	16,968		$	19,209
Cost of sales and other	(14,258		)	(17,949		)
Gain on sale of discontinued operations	64,040			—
Income from discontinued operations before income taxes	66,750			1,260
Income tax expense	(22,273		)	(422		)
Income from discontinued operations, net	$	44,477		$	838

The sale did not meet the "held for sale" criteria prior to the period it was completed. The major classes of Wood Products assets and liabilities included in the sale are as follows:

	March 1, 2013
Accounts receivable, net	$	4,127
Inventory	4,270
Prepaid and other current assets	2,053
Property, plant and equipment, net	9,990
Total assets	$	20,440
Total liabilities	$	596

Cash flows from discontinued operations are immaterial both individually and in the aggregate. As such, they are included with cash flows from continuing operations in the Consolidated Statements of Cash Flows.

Pursuant to the purchase and sale agreement, Rayonier will provide Interfor with saw timber procurement services for the three lumber mills through December 31, 2013. Rayonier also contracted with Interfor to purchase wood chips produced at the lumber mills for use at Rayonier's Jesup pulp mill and market other wood chips produced by the mills to third parties on Interfor's behalf. The Company will purchase 100 percent of the Baxley mill chips for five years and 25 percent of the Swainsboro mill chips through the end of 2013. The purchase price of these chips will be based on the average price paid by the Company to unrelated third parties. Prior to the Wood Products sale, saw timber procurement services for and wood chip purchases from the lumber mills were intercompany transactions eliminated in consolidation as follows:

	Three Months Ended March 31,
	2013		2012
Wood chip purchases	$	1,650	$	3,234
Saw timber procurement services	223		287
Total intercompany	$	1,873	$	3,521

XML

Consolidating Financial Statements Condensed Consolidating Statements of Cash Flows (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Statement of Cash Flows [Abstract]
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES	$ 89,660	$ 111,354
INVESTING ACTIVITIES
Capital Expenditures	(32,664)	(42,079)
Purchase of timberlands	(1,560)	(8,689)
Jesup mill cellulose specialties expansion	(36,734)	(26,026)
Proceeds from Divestiture of Businesses	83,741	0
Change in restricted cash	9,908	(5,609)
Investment in Subsidiaries	0	0
Other	1,790	8,736
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	(24,481)	73,667
FINANCING ACTIVITIES
Issuance of debt	100,000	340,000
Repayment of debt	(170,000)	(165,000)
Dividends paid	(57,744)	(49,249)
Proceeds from the issuance of common shares	4,091	2,061
Excess tax benefits on stock-based compensation	6,191	3,946
Debt issuance costs	0	(3,565)
Repurchase of common shares	(11,241)	(7,783)
Intercompany distributions	0	0
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	(128,703)	120,410
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(17)	(125)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(14,579)	157,972
Balance, beginning of year	280,596	78,603
Balance, end of period	266,017	236,575
Parent Company [Member]
Statement of Cash Flows [Abstract]
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES	13,984	(14,838)
INVESTING ACTIVITIES
Capital Expenditures	0	0
Purchase of timberlands	0	0
Jesup mill cellulose specialties expansion	0	0
Proceeds from Divestiture of Businesses	0
Change in restricted cash	0	0
Investment in Subsidiaries	0	0
Other	0	0
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	0	0
FINANCING ACTIVITIES
Issuance of debt	100,000	325,000
Repayment of debt	(150,000)	(120,000)
Dividends paid	(57,744)	(49,249)
Proceeds from the issuance of common shares	4,091	2,061
Excess tax benefits on stock-based compensation	0	0
Debt issuance costs		(3,565)
Repurchase of common shares	(11,241)	(7,783)
Intercompany distributions	0	0
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	(114,894)	146,464
EFFECT OF EXCHANGE RATE CHANGES ON CASH	0	0
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(100,910)	131,626
Balance, beginning of year	252,888	0
Balance, end of period	151,978	131,626
Senior Exchangeable Notes due 2015 [Member] [Domain] | Guarantor Subsidiaries [Member]
Statement of Cash Flows [Abstract]
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES	22,259	33,980
INVESTING ACTIVITIES
Capital Expenditures	(89)	(55)
Purchase of timberlands	0	0
Jesup mill cellulose specialties expansion	0	0
Proceeds from Divestiture of Businesses	0
Change in restricted cash	0	0
Investment in Subsidiaries	0	0
Other	0	(69)
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	89	124
FINANCING ACTIVITIES
Issuance of debt	0	0
Repayment of debt	0	(30,000)
Dividends paid	0	0
Proceeds from the issuance of common shares	0	0
Excess tax benefits on stock-based compensation	0	0
Debt issuance costs		0
Repurchase of common shares	0	0
Intercompany distributions	(5,206)	14,838
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	(5,206)	(15,162)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	0	0
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	16,964	18,694
Balance, beginning of year	3,966	8,977
Balance, end of period	20,930	27,671
Senior Exchangeable Notes due 2015 [Member] [Domain] | Issuer Subsidiary [Member]
Statement of Cash Flows [Abstract]
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES	0	12,000
INVESTING ACTIVITIES
Capital Expenditures	0	0
Purchase of timberlands	0	0
Jesup mill cellulose specialties expansion	0	0
Proceeds from Divestiture of Businesses	0
Change in restricted cash	0	0
Investment in Subsidiaries	32,391	(774)
Other	0	0
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	(32,391)	(774)
FINANCING ACTIVITIES
Issuance of debt	0	0
Repayment of debt	(20,000)	0
Dividends paid	0	0
Proceeds from the issuance of common shares	0	0
Excess tax benefits on stock-based compensation	0	0
Debt issuance costs		0
Repurchase of common shares	0	0
Intercompany distributions	0	(12,000)
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	(20,000)	(12,000)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	0	0
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	12,391	774
Balance, beginning of year	19,358	59,976
Balance, end of period	31,749	60,750
Senior Exchangeable Notes due 2015 [Member] [Domain] | Non-Guarantor Subsidiaries [Member]
Statement of Cash Flows [Abstract]
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES	58,980	105,616
INVESTING ACTIVITIES
Capital Expenditures	(32,575)	(42,024)
Purchase of timberlands	(1,560)	(8,689)
Jesup mill cellulose specialties expansion	(36,734)	(26,026)
Proceeds from Divestiture of Businesses	83,741
Change in restricted cash	9,908	(5,609)
Investment in Subsidiaries	0	0
Other	1,790	8,805
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	(24,570)	73,543
FINANCING ACTIVITIES
Issuance of debt	0	15,000
Repayment of debt	0	(15,000)
Dividends paid	0	0
Proceeds from the issuance of common shares	0	0
Excess tax benefits on stock-based compensation	6,191	3,946
Debt issuance costs		0
Repurchase of common shares	0	0
Intercompany distributions	(32,748)	(29,016)
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	(26,557)	(25,070)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(17)	(125)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	56,976	6,878
Balance, beginning of year		9,650
Balance, end of period		16,528
Senior Exchangeable Notes due 2015 [Member] [Domain] | Consolidation, Eliminations [Member]
Statement of Cash Flows [Abstract]
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES	(5,563)	(25,404)
INVESTING ACTIVITIES
Capital Expenditures	0	0
Purchase of timberlands	0	0
Jesup mill cellulose specialties expansion	0	0
Proceeds from Divestiture of Businesses	0
Change in restricted cash	0	0
Investment in Subsidiaries	(32,391)	(774)
Other	0	0
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	32,391	774
FINANCING ACTIVITIES
Issuance of debt	0	0
Repayment of debt	0	0
Dividends paid	0	0
Proceeds from the issuance of common shares	0	0
Excess tax benefits on stock-based compensation	0	0
Debt issuance costs		0
Repurchase of common shares	0	0
Intercompany distributions	37,954	26,178
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	37,954	26,178
EFFECT OF EXCHANGE RATE CHANGES ON CASH	0	0
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	0	0
Balance, beginning of year	0	0
Balance, end of period	0	0
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | Guarantor Subsidiaries [Member]
Statement of Cash Flows [Abstract]
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES	22,259	33,980
INVESTING ACTIVITIES
Capital Expenditures	(89)	(55)
Purchase of timberlands	0	0
Jesup mill cellulose specialties expansion	0	0
Proceeds from Divestiture of Businesses	0
Change in restricted cash	0	0
Investment in Subsidiaries	(32,391)	774
Other	0	(69)
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	(32,302)	(650)
FINANCING ACTIVITIES
Issuance of debt	0	0
Repayment of debt	(20,000)	(30,000)
Dividends paid	0	0
Proceeds from the issuance of common shares	0	0
Excess tax benefits on stock-based compensation	0	0
Debt issuance costs		0
Repurchase of common shares	0	0
Intercompany distributions	(5,206)	14,838
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	(25,206)	(15,162)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	0	0
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	29,355	19,468
Balance, beginning of year	23,324	68,953
Balance, end of period	52,679	88,421
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | Non-Guarantor Subsidiaries [Member]
Statement of Cash Flows [Abstract]
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES	58,980	105,616
INVESTING ACTIVITIES
Capital Expenditures	(32,575)	(42,024)
Purchase of timberlands	(1,560)	(8,689)
Jesup mill cellulose specialties expansion	(36,734)	(26,026)
Proceeds from Divestiture of Businesses	83,741
Change in restricted cash	9,908	(5,609)
Investment in Subsidiaries	0	0
Other	1,790	8,805
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	(24,570)	(73,543)
FINANCING ACTIVITIES
Issuance of debt	0	15,000
Repayment of debt	0	(15,000)
Dividends paid	0	0
Proceeds from the issuance of common shares	0	0
Excess tax benefits on stock-based compensation	6,191	3,946
Debt issuance costs		0
Repurchase of common shares	0	0
Intercompany distributions	(32,748)	(29,016)
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	(26,557)	(25,070)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(17)	(125)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	56,976	6,878
Balance, beginning of year	4,384	9,650
Balance, end of period	61,360	16,528
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | Consolidation, Eliminations [Member]
Statement of Cash Flows [Abstract]
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES	(5,563)	(13,404)
INVESTING ACTIVITIES
Capital Expenditures	0	0
Purchase of timberlands	0	0
Jesup mill cellulose specialties expansion	0	0
Proceeds from Divestiture of Businesses	0
Change in restricted cash	0	0
Investment in Subsidiaries	(32,391)	774
Other	0	0
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	32,391	774
FINANCING ACTIVITIES
Issuance of debt	0	0
Repayment of debt	0	0
Dividends paid	0	0
Proceeds from the issuance of common shares	0	0
Excess tax benefits on stock-based compensation	0	0
Debt issuance costs		0
Repurchase of common shares	0	0
Intercompany distributions	37,954	14,178
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	37,954	14,178
EFFECT OF EXCHANGE RATE CHANGES ON CASH	0	0
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	0	0
Balance, beginning of year	0	0
Balance, end of period	$ 0	$ 0

XML

Restricted Deposits (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013		Dec. 31, 2012
Restricted Cash and Investments [Abstract]
Maximum Time Period Proceeds From LKE Sale Maintained with Third Party Intermediary	180 days
Restricted Cash and Cash Equivalents	$ 651	[1]	$ 10,559	[1]

[1] Restricted cash is recorded in "Other Assets" and represents the proceeds from LKE sales deposited with a third-party intermediary.

XML

Shareholders' Equity (Tables)

3 Months Ended

Mar. 31, 2013

Stockholders' Equity Note [Abstract]

Schedule of Stockholders Equity [Table Text Block]

An analysis of shareholders’ equity for the three months ended March 31, 2013 and the year ended December 31, 2012 is shown below (share amounts not in thousands):

	Common Shares					Retained Earnings			Accumulated Other Comprehensive Income/(Loss)			Shareholders’ Equity
	Shares		Amount
Balance, December 31, 2011	122,035,177		$	630,286		$	806,235		$	(113,448	)	$	1,323,073
Net income	—		—			278,685			—			278,685
Dividends ($1.68 per share)	—		—			(208,286		)	—			(208,286		)
Issuance of shares under incentive stock plans	1,467,024		25,495			—			—			25,495
Stock-based compensation	—		15,116			—			—			15,116
Excess tax benefit on stock-based compensation	—		7,635			—			—			7,635
Repurchase of common shares	(169,757	)	(7,783		)	—			—			(7,783		)
Net loss from pension and postretirement plans	—		—			—			(496		)	(496		)
Foreign currency translation adjustment	—		—			—			4,352			4,352
Joint venture cash flow hedges	—		—			—			213			213
Balance, December 31, 2012	123,332,444		$	670,749		$	876,634		$	(109,379	)	$	1,438,004
Net income	—		—			147,735			—			147,735
Dividends ($0.44 per share)	—		—			(55,396		)	—			(55,396		)
Issuance of shares under incentive stock plans	743,381		4,091			—			—			4,091
Stock-based compensation	—		3,308			—			—			3,308
Excess tax benefit on stock-based compensation	—		6,191			—			—			6,191
Repurchase of common shares	(209,743	)	(11,241		)	—			—			(11,241		)
Maturity of warrants (Note 14)	2,036,976		—			—			—			—
Gain from pension and postretirement plans	—		—			—			4,969			4,969
Foreign currency translation adjustment	—		—			—			975			975
Joint venture cash flow hedges	—		—			—			554			554
Balance, March 31, 2013	125,903,058		$	673,098		$	968,973		$	(102,881	)	$	1,539,190

XML

Income Taxes (Tables)

3 Months Ended

Mar. 31, 2013

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The table below reconciles the U.S. statutory rate to the Company's effective tax rate for each period presented (in millions of dollars).

	Three Months Ended March 31,
	2013					2012
Income tax expense at federal statutory rate	$	38		35.0	%	$	25		35.0	%
REIT income not subject to tax	(11		)	(10.1	)%	(5		)	(7.7	)%
Other	(2		)	(1.5	)%	(1		)	(0.8	)%
Income tax expense before discrete items	25			23.4	%	19			26.5	%
Exchange of AFMC for CBPC	(19		)	(17.5	)%	—			—	%
Other	(2		)	(1.8	)%	(1		)	(0.7	)%
Income tax expense as reported	$	4		4.1	%	$	18		25.8	%

XML

Debt (Details) (USD $) In Millions, except Share data, unless otherwise specified	3 Months Ended			0 Months Ended	3 Months Ended
	Mar. 31, 2013 April 2011 Line of Credit as Amended October 2012 [Member]	Jun. 30, 2013 Senior Exchangeable Notes due 2015 at a fixed interest rate of 4.50% [Member]	Mar. 31, 2013 Senior Exchangeable Notes due 2015 at a fixed interest rate of 4.50% [Member]	Apr. 02, 2013 Warrants on Senior Exchangeable Notes due 2012 [Member]	Mar. 31, 2013 Warrants on Senior Exchangeable Notes due 2012 [Member] unit
Debt Instrument [Line Items]
Beginning Date for Maturity of Warrants					Jan. 15, 2013
Ending Date for Maturity of Warrants					Mar. 27, 2013
Number of Warrants Settled					7,984,078
Total Number of Warrants					8,313,511
Shares issued on conversion of warrants				97,918	2,036,976
Ending Date for Settlement of Warrants				Apr. 02, 2013
Debt Instrument, Face Amount			$ 172.5
Debt Instrument, Interest Rate, Stated Percentage			4.50%
Debt Instrument, Maturity Date, Description			2015
Debt Instrument, Exchange Feature, Exchange Period, Beginning Date		Mar. 31, 2013	Dec. 31, 2012
Debt Instrument, Exchange Feature, Exchange Period, End Date		Jun. 30, 2013	Mar. 31, 2013
Debt Instrument, Exchange Feature, Description			Per the indenture, in order for the notes to become exchangeable, the Company's stock price must exceed 130 percent of the exchange price for 20 trading days during a period of 30 consecutive trading days as of the last day of the quarter.
Line of Credit Facility, Increase (Decrease) for Period, Net	(70)
Line of Credit Facility, Maximum Borrowing Capacity	450
Line of Credit Facility, Remaining Borrowing Capacity	$ 242

XML

Joint Venture Investment (Details) (Matariki [Member])	Mar. 31, 2013 Acres
Matariki [Member]
Schedule of Equity Method Investments [Line Items]
Equity Method Investment, Ownership Percentage	26.00%
Acres Of Timberland Owned By Joint Venture	300,000

XML

Segment and Geographical Information (Tables)

3 Months Ended

Mar. 31, 2013

Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]

Schedule of Segment Reporting Information, by Segment [Table Text Block]

Total assets, sales, operating income (loss) and depreciation, depletion and amortization by segment including Corporate were as follows:

	March 31,		December 31,
ASSETS	2013		2012
Forest Resources	$	1,722,413	$	1,690,030
Real Estate	102,374		112,647
Performance Fibers	973,786		902,309
Wood Products (a)	—		18,454
Other Operations	31,238		23,296
Corporate and other	372,474		376,215
Total	$	3,202,285	$	3,122,951

(a) The Company sold its Wood Products segment during the first quarter of 2013. See Note 2 — Sale of Wood Products Business for additional information.

	Three Months Ended March 31,
SALES	2013			2012
Forest Resources	$	57,102		$	52,195
Real Estate	24,297			12,647
Performance Fibers	284,188			250,855
Other Operations	28,227			21,140
Intersegment Eliminations (b)	(95		)	(266		)
Total	$	393,719		$	336,571

(b) Intersegment eliminations primarily reflect sales from our Forest Resources segment to our Performance Fibers segment.

	Three Months Ended March 31,
OPERATING INCOME(LOSS)	2013			2012
Forest Resources	$	13,255		$	8,005
Real Estate	16,842			6,478
Performance Fibers	91,670			80,630
Other Operations	165			(931		)
Corporate and other	(6,569		)	(11,432		)
Total	$	115,363		$	82,750

	Three Months Ended March 31,
DEPRECIATION, DEPLETION AND AMORTIZATION	2013		2012
Forest Resources	$	16,444	$	16,833
Real Estate	4,177		1,845
Performance Fibers	15,153		11,361
Corporate and other	218		374
Total	$	35,992	$	30,413

XML

Fair Value Measurements (Tables)

3 Months Ended

Mar. 31, 2013

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

As of March 31, 2013 and 2012, the impact of the Company's derivative instruments and their location within the Consolidated Statements of Income and Comprehensive Income was as follows:

		March 31, 2013				March 31, 2012
	Location of Gain Recognized in Income	Carrying Amount		Fair Value (Level 1)		Carrying Amount	Fair Value (Level 1)
Foreign Currency Forward Contracts (a)	Other Operating Income, net	$	1,881	$	1,881	—	—

(a) Foreign currency forward contracts are recorded in "Other Current Assets."

Fair Value, by Balance Sheet Grouping [Table Text Block]

The following table presents the carrying amount, estimated fair values and categorization under the fair value hierarchy of financial instruments held by the Company at March 31, 2013 and December 31, 2012, using market information and what management believes to be appropriate valuation methodologies under generally accepted accounting principles:

	March 31, 2013								December 31, 2012
Asset (liability)	Carrying Amount			Fair Value					Carrying Amount			Fair Value
				Level 1		Level 2						Level 1		Level 2
Cash and cash equivalents	$	266,017		$	266,017	$	—		$	280,596		$	280,596	$	—
Restricted cash (a)	651			651		—			10,559			10,559		—
Current maturities of long-term debt	(50,000		)	—		(50,000		)	(150,000		)	—		(150,000		)
Long-term debt	(1,150,471		)	—		(1,307,144		)	(1,120,052		)	—		(1,250,341		)

(a) Restricted cash is recorded in "Other Assets" and represents the proceeds from LKE sales deposited with a third-party intermediary.

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

Assets measured at fair value on a recurring basis are summarized below:

Asset	Carrying Value at March 31, 2013		Level 2		Carrying Value at December 31, 2012		Level 2
Investment in special-purpose entity	$	2,666	$	2,666	$	2,671	$	2,671

XML

Basis Of Presentation (Notes)

3 Months Ended

Mar. 31, 2013

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation [Text Block]

1. BASIS OF PRESENTATION

Basis of Presentation

The unaudited consolidated financial statements and notes thereto of Rayonier Inc. and its subsidiaries ("Rayonier" or the "Company") have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). In the opinion of management, these financial statements and notes reflect all adjustments (all of which are normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. These statements and notes should be read in conjunction with the financial statements and supplementary data included in the Company's Annual Report on Form 10-K for the year ended December 31, 2012, as filed with the SEC.

Reclassifications

Certain 2012 amounts have been reclassified to agree with the current year presentation. See Note 2 — Sale of Wood Products Business for information regarding reclassifications for discontinued operations.

New Accounting Standards

In February 2013, the Financial Accounting Standards Board issued Accounting Standards Update No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income. This standard requires reporting, in one place, information about reclassifications out of AOCI by component. An entity is required to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of AOCI by the respective line items of net income, but only if the amount is reclassified in its entirety in the same reporting period. For amounts that are not required to be reclassified to net income in their entirety, an entity is required to cross-reference to other currently required disclosures that provide additional detail about those amounts. The information required by this standard must be presented in one place, either parenthetically on the face of the financial statements by income statement line item or in a note. See Note 15 — Accumulated Other Comprehensive Loss for our disclosures required under this guidance.

Subsequent Events

The Company evaluated events and transactions that occurred after the balance sheet date but before financial statements were issued, and one subsequent event was identified that warranted disclosure. See Note 6 — Joint Venture Investment for additional information.

XML

Guarantees (Tables)

3 Months Ended

Mar. 31, 2013

Guarantees [Abstract]

Schedule of Guarantor Obligations [Table Text Block]

The Company provides financial guarantees as required by creditors, insurance programs, and state and foreign governmental agencies. As of March 31, 2013, the following financial guarantees were outstanding:

Financial Commitments	Maximum Potential Payment		Carrying Amount of Liability
Standby letters of credit (a)	$	18,205	$	15,000
Guarantees (b)	2,254		43
Surety bonds (c)	7,231		1,388
Total financial commitments	$	27,690	$	16,431

(a) Approximately $15 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 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 $2.3 million of obligations of a special-purpose entity that was established to complete the monetization. At March 31, 2013, 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 2013 and 2014 and are expected to be renewed as required.

XML

Earnings Per Common Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended				12 Months Ended	0 Months Ended	3 Months Ended
	Mar. 31, 2013		Mar. 31, 2012		Dec. 31, 2012	Apr. 02, 2013 Warrants on Senior Exchangeable Notes due 2012 [Member]	Mar. 31, 2013 Warrants on Senior Exchangeable Notes due 2012 [Member]	Mar. 31, 2013 Warrants on Senior Exchangeable Notes due 2015 [Member]
Earnings Per Share [Abstract]
Income from continuing operations	$ 103,258		$ 52,599
Income from discontinued operations	44,477		838
NET INCOME	$ 147,735		$ 53,437		$ 278,685
Shares used for determining basic earnings per share	124,479,865		122,352,435
Dilutive Effect of:
Stock options	533,031		719,166
Performance and restricted shares	448,440		651,729
Assumed conversion of Senior Exchangeable Notes	2,115,959	[1]	2,967,187	[1]
Assumed conversion of warrants	2,859,593	[1],[2]	1,241,612	[1],[2]
Shares used for determining diluted earnings per common share	130,436,888		127,932,129
Basic earnings per common share:
Continuing operations	$ 0.83		$ 0.43
Discontinued operations	$ 0.36		$ 0.01
Net Income	$ 1.19		$ 0.44
Diluted earnings per common share:
Continuing operations	$ 0.79		$ 0.41
Discontinued operations	$ 0.34		$ 0.01
Net Income	$ 1.13		$ 0.42
Class of Warrant or Right [Line Items]
Beginning Date for Maturity of Warrants							Jan. 15, 2013
Ending Date for Maturity of Warrants							Mar. 27, 2013
Shares issued on conversion of warrants						97,918	2,036,976
Strike price of warrants								39.43
Average Stock Price	$ 55.47		$ 45.07

[1] The Senior Exchangeable Notes due 2012 (the "2012 Notes") matured in October 2012; however, no additional shares were issued due to offsetting exchangeable note hedges. Similarly, Rayonier will not issue additional shares upon maturity of the Senior Exchangeable Notes due 2015 (the "2015 Notes") due to offsetting hedges. 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 is excluded since they are anti-dilutive. As such, the dilutive effect of the assumed conversion of the 2012 Notes was only included for the three months ended March 31, 2012, while the effect of the 2015 Notes was included for both periods presented.The warrants sold in conjunction with the Notes due 2012 began maturing on January 15, 2013 and matured ratably through March 27, 2013. As a result, 2,036,976 shares were issued through the end of the first quarter and 97,918 shares issued in the first week of April. The dilutive impact of these warrants was calculated based on the amount of time they were outstanding before settlement during the first quarter. Rayonier will distribute additional shares upon maturity of the warrants for the Notes due 2015 if the stock price exceeds $39.43 per share. For additional information on the potential dilutive impact of the Senior Exchangeable Notes, warrants and exchangeable note hedges, see Note 11 — Debt in the 2012 Annual Report on Form 10-K and Note 14 — Debt of this Form 10-Q.

[2] The higher shares used for the assumed conversion of the warrants were primarily due to an increase in the average stock price from $45.07 in first quarter 2012 to $55.47 in first quarter 2013.

XML

Liabilities for Dispositions and Discontinued Operations Narrative (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
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, 2013, 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.

XML

Consolidated Statements of Income and Comprehensive Income (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
SALES	$ 393,719	$ 336,571
Costs and Expenses
Cost of sales	266,018	235,708
Selling and general expenses	16,099	19,265
Other operating income, net	(3,503)	(1,139)
Costs and Expenses, Total	278,614	253,834
Equity in income of New Zealand joint venture	258	13
OPERATING INCOME	115,363	82,750
Interest expense	(7,717)	(11,825)
Interest and miscellaneous income (expense), net	57	(23)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	107,703	70,902
Income tax expense	(4,445)	(18,303)
INCOME FROM CONTINUING OPERATIONS	103,258	52,599
DISCONTINUED OPERATIONS, NET (Note 2)
Income from discontinued operations, net of income tax expense of $22,273 and $422	44,477	838
NET INCOME	147,735	53,437	278,685
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	975	5,825	4,352
New Zealand joint venture cash flow hedges	554	1,205	213
Gain from pension and postretirement plans, net of income tax expense of $2,204 and $1,368	4,969	3,140	(496)
Total other comprehensive income	6,498	10,170
COMPREHENSIVE INCOME	$ 154,233	$ 63,607
BASIC EARNINGS PER SHARE
Continuing Operations	$ 0.83	$ 0.43
Discontinued Operations	$ 0.36	$ 0.01
Net Income	$ 1.19	$ 0.44
DILUTED EARNINGS PER SHARE
Continuing Operations	$ 0.79	$ 0.41
Discontinued Operations	$ 0.34	$ 0.01
Net Income	$ 1.13	$ 0.42
Dividends per share	$ 0.44	$ 0.40	$ 1.68

XML

Joint Venture Investment Subsequent Event (Details) (Matariki joint venture step acquisition [Member], USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Matariki joint venture step acquisition [Member]
Subsequent Event [Line Items]
Business acquisition, date description	April 2013
Description of step acquisition	Rayonier acquired an additional 39 percent ownership interest in the Matariki JV
Purchase amount of additional ownership interest	$ 140
Ownership percentage of joint venture	65.00%
Noncontrolling partner's interest in joint venture	35.00%

XML

Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
OPERATING ACTIVITIES
Net Income	$ 147,735	$ 53,437
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, depletion and amortization	35,992	30,413
Non-cash cost of real estate sold	633	1,382
Stock-based incentive compensation expense	3,280	6,466
Amortization of debt discount/premium	419	1,890
Tax benefit of AFMC for CBPC exchange	(18,761)	0
Amortization of losses from pension and postretirement plans	6,279	4,508
Gain on sale of discontinued operations, net	(42,670)	0
Gain on foreign currency forward contracts	(1,881)	0
Other	(3,243)	1,874
Changes in operating assets and liabilities:
Receivables	(8,778)	(1,911)
Inventories	11,197	17,035
Accounts payable	15,386	3,978
Income tax receivable/payable	15,915	11,469
All other operating activities	99	(17,476)
Payment to exchange AFMC for CBPC	(70,311)	0
Expenditures for dispositions and discontinued operations	(1,631)	(1,711)
CASH PROVIDED BY OPERATING ACTIVITIES	89,660	111,354
INVESTING ACTIVITIES
Capital expenditures	(32,664)	(42,079)
Purchase of timberlands	(1,560)	(8,689)
Jesup mill cellulose specialties expansion (gross purchases of $57,693 and $41,051, net of purchases on account of $20,959 and $15,025)	(36,734)	(26,026)
Proceeds from disposition of Wood Products business	83,741	0
Change in restricted cash	9,908	(5,609)
Other	1,790	8,736
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	24,481	(73,667)
FINANCING ACTIVITIES
Issuance of debt	100,000	340,000
Repayment of debt	(170,000)	(165,000)
Dividends paid	(57,744)	(49,249)
Proceeds from the issuance of common shares	4,091	2,061
Excess tax benefits on stock-based compensation	6,191	3,946
Debt issuance costs	0	(3,565)
Repurchase of common shares	(11,241)	(7,783)
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES	(128,703)	120,410
EFFECT OF EXCHANGE RATE CHANGES ON CASH	(17)	(125)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(14,579)	157,972
Balance, beginning of year	280,596	78,603
Balance, end of period	266,017	236,575
Cash paid during the period:
Interest	3,562	5,213
Income taxes	70,403	325
Non-cash investing activity:
Capital assets purchased on account	$ 49,094	$ 44,576

XML

Consolidating Financial Statements Text (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2013
Senior Exchangeable Notes due 2015 at a fixed interest rate of 4.50% [Member]
Debt Instrument [Line Items]
Debt Instrument, Issuance Date	August 2009
Debt Instrument, Face Amount	$ 172.5
Debt Instrument, Interest Rate, Stated Percentage	4.50%
Debt Instrument, Maturity Date, Description	2015
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member]
Debt Instrument [Line Items]
Debt Instrument, Issuance Date	March 2012
Debt Instrument, Face Amount	$ 325.0
Debt Instrument, Interest Rate, Stated Percentage	3.75%
Debt Instrument, Maturity Date, Description	2022

XML

Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Mar. 31, 2013

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

Accumulated Other Comprehensive Loss was comprised of the following:

	Foreign currency translation gains		New Zealand joint venture cash flow hedges (a)			Unrecognized components of employee benefit plans, net of tax (b)			Total
Balance as of December 31, 2012	$	38,829	$	(3,628	)	$	(144,580	)	$	(109,379	)
Other comprehensive income before reclassifications	975		554			530			2,059
Amounts reclassified from accumulated other comprehensive income	—		—			4,439			4,439
Net other comprehensive income	975		554			4,969			6,498
Ending balance	$	39,804	$	(3,074	)	$	(139,611	)	$	(102,881	)

(a) Rayonier records its proportionate share of the JV’s cash flow hedges as increases or decreases to "Investment in Joint Venture" with corresponding adjustments to "Accumulated other comprehensive loss" in the Company’s Consolidated Balance Sheets.

(b) See Note 13 — Employee Benefit Plans for additional information.

XML

Accumulated Other Comprehensive Loss (Notes)

3 Months Ended

Mar. 31, 2013

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Loss [Text Block]

15. ACCUMULATED OTHER COMPREHENSIVE LOSS

Accumulated Other Comprehensive Loss was comprised of the following:

	Foreign currency translation gains		New Zealand joint venture cash flow hedges (a)			Unrecognized components of employee benefit plans, net of tax (b)			Total
Balance as of December 31, 2012	$	38,829	$	(3,628	)	$	(144,580	)	$	(109,379	)
Other comprehensive income before reclassifications	975		554			530			2,059
Amounts reclassified from accumulated other comprehensive income	—		—			4,439			4,439
Net other comprehensive income	975		554			4,969			6,498
Ending balance	$	39,804	$	(3,074	)	$	(139,611	)	$	(102,881	)

(a) Rayonier records its proportionate share of the JV’s cash flow hedges as increases or decreases to "Investment in Joint Venture" with corresponding adjustments to "Accumulated other comprehensive loss" in the Company’s Consolidated Balance Sheets.

(b) See Note 13 — Employee Benefit Plans for additional information.

XML

Other Operating Income, Net (Tables)

3 Months Ended

Mar. 31, 2013

Other Operating Income, Net [Abstract]

Interest and Other Income [Table Text Block]

Other operating income (expense), net was comprised of the following:

	Three Months Ended March 31,
	2013			2012
Lease income, primarily from hunting leases	$	2,462		$	2,385
Other non-timber income	474			842
Foreign currency loss	(184		)	(865		)
Loss on sale or disposal of property, plant & equipment	(429		)	(1,021		)
Gain on foreign currency forward contracts	1,881			—
Miscellaneous expense, net	(701		)	(202		)
Total	$	3,503		$	1,139

XML

Consolidating Financial Statements (Notes)

3 Months Ended

Mar. 31, 2013

CONSOLIDATING FINANCIAL STATEMENTS [Abstract]

Consolidating Financial Statements [Text Block]

17. CONSOLIDATING FINANCIAL STATEMENTS

The condensed consolidating financial information below follows the same accounting policies as described in the consolidated financial statements, except for the use of the equity method of accounting to reflect ownership interests in wholly-owned subsidiaries, which are eliminated upon consolidation, and the allocation of certain expenses of Rayonier Inc. incurred for the benefit of its subsidiaries.

In August 2009 TRS issued $172.5 million of 4.50% Senior Exchangeable Notes due 2015. The notes are guaranteed by Rayonier Inc. as the Parent Guarantor and Rayonier Operating Company LLC ("ROC") as the Subsidiary Guarantor. In connection with these exchangeable notes, the Company provides the following condensed consolidating financial information in accordance with SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME  AND COMPREHENSIVE INCOME For the Three Months Ended March 31, 2013
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	—		$	393,719		$	—		$	393,719
Costs and Expenses
Cost of sales	—			—			—			266,018			—			266,018
Selling and general expenses	—			2,401			—			13,698			—			16,099
Other operating (income) expense, net	(1,881		)	523			—			(2,145		)	—			(3,503		)
	(1,881		)	2,924			—			277,571			—			278,614
Equity in income of New Zealand joint venture	—			—			—			258			—			258
OPERATING INCOME (LOSS)	1,881			(2,924		)	—			116,406			—			115,363
Interest (expense) income	(3,275		)	(252		)	(6,618		)	2,428			—			(7,717		)
Interest and miscellaneous income (expense), net	2,419			529			(751		)	(2,140		)	—			57
Equity in income from subsidiaries	146,710			148,765			123,469			—			(418,944		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	147,735			146,118			116,100			116,694			(418,944		)	107,703
Income tax benefit (expense)	—			592			2,690			(7,727		)	—			(4,445		)
INCOME FROM CONTINUING OPERATIONS	147,735			146,710			118,790			108,967			(418,944		)	103,258
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income taxes	—			—			—			44,477			—			44,477
NET INCOME	147,735			146,710			118,790			153,444			(418,944		)	147,735
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	975			975			240			975			(2,190		)	975
New Zealand joint venture cash flow hedges	554			554			—			554			(1,108		)	554
Gain from pension and postretirement plans, net of income tax	4,969			4,969			4,012			—			(8,981		)	4,969
Total other comprehensive income	6,498			6,498			4,252			1,529			(12,279		)	6,498
COMPREHENSIVE INCOME	$	154,233		$	153,208		$	123,042		$	154,973		$	(431,223	)	$	154,233

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended March 31, 2012
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	—		$	336,571		$	—		$	336,571
Costs and Expenses
Cost of sales	—			—			—			235,708			—			235,708
Selling and general expenses	—			3,311			—			15,954			—			19,265
Other operating expense (income), net	—			121			—			(1,260		)	—			(1,139		)
	—			3,432			—			250,402			—			253,834
Equity in income of New Zealand joint venture	—			—			—			13			—			13
OPERATING (LOSS) INCOME	—			(3,432		)	—			86,182			—			82,750
Interest expense	(1,249		)	(238		)	(10,226		)	(112		)	—			(11,825		)
Interest and miscellaneous income (expense), net	1,912			1,327			(1,208		)	(2,054		)	—			(23		)
Equity in income from subsidiaries	52,774			55,446			45,745			—			(153,965		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	53,437			53,103			34,311			84,016			(153,965		)	70,902
Income tax (expense) benefit	—			(329		)	4,174			(22,148		)	—			(18,303		)
INCOME FROM CONTINUING OPERATIONS	53,437			52,774			38,485			61,868			(153,965		)	52,599
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income tax	—			—			—			838			—			838
NET INCOME	53,437			52,774			38,485			62,706			(153,965		)	53,437
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	5,825			5,825			(102		)	5,825			(11,548		)	5,825
New Zealand joint venture cash flow hedges	1,205			1,205			—			1,205			(2,410		)	1,205
Gain from pension and postretirement plans, net of income tax	3,140			3,140			2,380			2,380			(7,900		)	3,140
Total other comprehensive income	10,170			10,170			2,278			9,410			(21,858		)	10,170
COMPREHENSIVE INCOME	$	63,607		$	62,944		$	40,763		$	72,116		$	(175,823	)	$	63,607

	CONDENSED CONSOLIDATING BALANCE SHEETS As of March 31, 2013
	Rayonier Inc. (Parent Guarantor)		ROC (Subsidiary Guarantor)		Rayonier TRS Holdings Inc. (Issuer)		Non- guarantors		Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	151,978	$	20,930	$	31,749	$	61,360	$	—		$	266,017
Accounts receivable, less allowance for doubtful accounts	27		7		478		105,181		—			105,693
Inventory	—		—		—		113,643		—			113,643
Deferred tax assets	—		—		—		66,509		—			66,509
Prepaid and other current assets	—		3,618		629		34,649		—			38,896
Total current assets	152,005		24,555		32,856		381,342		—			590,758
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		—		1,565,782		—			1,565,782
NET PROPERTY, PLANT AND EQUIPMENT	—		2,315		—		757,923		—			760,238
INVESTMENT IN JOINT VENTURE	—		—		—		73,830		—			73,830
INVESTMENT IN SUBSIDIARIES	1,599,115		1,827,667		1,486,647		—		(4,913,429		)	—
INTERCOMPANY NOTES RECEIVABLE	215,140		—		20,021		—		(235,161		)	—
OTHER ASSETS	4,042		28,086		4,826		174,723		—			211,677
TOTAL ASSETS	$	1,970,302	$	1,882,623	$	1,544,350	$	2,953,600	$	(5,148,590	)	$	3,202,285
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	1,463	$	222	$	106,808	$	—		$	108,493
Current maturities of long-term debt	50,000		—		—		—		—			50,000
Accrued taxes	—		14		—		30,045		—			30,059
Accrued payroll and benefits	—		8,578		—		9,893		—			18,471
Accrued interest	6,112		484		3,695		909		—			11,200
Accrued customer incentives	—		—		—		8,936		—			8,936
Other current liabilities	—		3,245		—		21,923		—			25,168
Current liabilities for dispositions and discontinued operations	—		—		—		8,398		—			8,398
Total current liabilities	56,112		13,784		3,917		186,912		—			260,725
LONG-TERM DEBT	375,000		—		698,916		76,555		—			1,150,471
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		—		71,799		—			71,799
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		129,743		—		29,086		—			158,829
OTHER NON-CURRENT LIABILITIES	—		14,007		—		7,264		—			21,271
INTERCOMPANY PAYABLE	—		125,974		—		168,076		(294,050		)	—
TOTAL SHAREHOLDERS’ EQUITY	1,539,190		1,599,115		841,517		2,413,908		(4,854,540		)	1,539,190
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,970,302	$	1,882,623	$	1,544,350	$	2,953,600	$	(5,148,590	)	$	3,202,285

	CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2012
	Rayonier Inc. (Parent Guarantor)		ROC (Subsidiary Guarantor)		Rayonier TRS Holdings Inc. (Issuer)		Non- guarantors		Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	252,888	$	3,966	$	19,358	$	4,384	$	—		$	280,596
Accounts receivable, less allowance for doubtful accounts	—		386		—		99,973		—			100,359
Inventory	—		—		—		127,966		—			127,966
Deferred tax assets	—		—		—		15,845		—			15,845
Prepaid and other current assets	—		1,566		691		39,251		—			41,508
Total current assets	252,888		5,918		20,049		287,419		—			566,274
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		—		1,573,309		—			1,573,309
NET PROPERTY, PLANT AND EQUIPMENT	—		2,321		—		704,717		—			707,038
INVESTMENT IN JOINT VENTURE	—		—		—		72,419		—			72,419
INVESTMENT IN SUBSIDIARIES	1,445,205		1,677,782		1,452,027		—		(4,575,014		)	—
INTERCOMPANY NOTES RECEIVABLE	213,863		14,000		19,831		—		(247,694		)	—
OTHER ASSETS	4,148		27,779		5,182		166,802		—			203,911
TOTAL ASSETS	$	1,916,104	$	1,727,800	$	1,497,089	$	2,804,666	$	(4,822,708	)	$	3,122,951
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	2,099	$	33	$	68,249	$	—		$	70,381
Current maturities of long-term debt	150,000		—		—		—		—			150,000
Accrued taxes	—		485		—		13,339		—			13,824
Accrued payroll and benefits	—		15,044		—		13,024		—			28,068
Accrued interest	3,100		379		3,197		1,280		—			7,956
Accrued customer incentives	—		—		—		10,849		—			10,849
Other current liabilities	—		2,925		—		15,715		—			18,640
Current liabilities for dispositions and discontinued operations	—		—		—		8,105		—			8,105
Total current liabilities	153,100		20,932		3,230		130,561		—			307,823
LONG-TERM DEBT	325,000		—		718,321		76,731		—			1,120,052
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		—		73,590		—			73,590
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		129,156		—		30,426		—			159,582
OTHER NON-CURRENT LIABILITIES	—		16,432		—		7,468		—			23,900
INTERCOMPANY PAYABLE	—		116,075		—		137,797		(253,872		)	—
TOTAL SHAREHOLDERS’ EQUITY	1,438,004		1,445,205		775,538		2,348,093		(4,568,836		)	1,438,004
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,916,104	$	1,727,800	$	1,497,089	$	2,804,666	$	(4,822,708	)	$	3,122,951

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2013
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	13,984		$	22,259		$	—		$	58,980		$	(5,563	)	$	89,660
INVESTING ACTIVITIES
Capital expenditures	—			(89		)	—			(32,575		)	—			(32,664		)
Purchase of timberlands	—			—			—			(1,560		)	—			(1,560		)
Jesup mill cellulose specialties expansion	—			—			—			(36,734		)	—			(36,734		)
Proceeds from the disposition of Wood Products business	—			—			—			83,741			—			83,741
Change in restricted cash	—			—			—			9,908			—			9,908
Investment in Subsidiaries	—			—			32,391			—			(32,391		)	—
Other	—			—			—			1,790			—			1,790
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	—			(89		)	32,391			24,570			(32,391		)	24,481
FINANCING ACTIVITIES
Issuance of debt	100,000			—			—			—			—			100,000
Repayment of debt	(150,000		)	—			(20,000		)	—			—			(170,000		)
Dividends paid	(57,744		)	—			—			—			—			(57,744		)
Proceeds from the issuance of common shares	4,091			—			—			—			—			4,091
Excess tax benefits on stock-based compensation	—			—			—			6,191			—			6,191
Repurchase of common shares	(11,241		)	—			—			—			—			(11,241		)
Intercompany distributions	—			(5,206		)	—			(32,748		)	37,954			—
CASH USED FOR FINANCING ACTIVITIES	(114,894		)	(5,206		)	(20,000		)	(26,557		)	37,954			(128,703		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			—			(17		)	—			(17		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(100,910		)	16,964			12,391			56,976			—			(14,579		)
Balance, beginning of year	252,888			3,966			19,358			4,384			—			280,596
Balance, end of period	$	151,978		$	20,930		$	31,749		$	61,360		$	—		$	266,017

	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)			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES	$	(14,838	)	$	33,980		$	12,000		$	105,616		$	(25,404	)	$	111,354
INVESTING ACTIVITIES
Capital expenditures	—			(55		)	—			(42,024		)	—			(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		)	—			8,805			—			8,736
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	—			(124		)	774			(73,543		)	(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		)	(29,016		)	26,178			—
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	146,464			(15,162		)	(12,000		)	(25,070		)	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			6,878			—			157,972
Balance, beginning of year	—			8,977			59,976			9,650			—			78,603
Balance, end of period	$	131,626		$	27,671		$	60,750		$	16,528		$	—		$	236,575

In March 2012, Rayonier Inc. issued $325 million of 3.75% Senior Notes due 2022. The notes are fully and unconditionally guaranteed by ROC and Rayonier TRS Holdings Inc. In connection with these notes, the Company provides the following consolidating financial information in accordance with SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended March 31, 2013
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	393,719		$	—		$	393,719
Costs and Expenses
Cost of sales	—			—			266,018			—			266,018
Selling and general expenses	—			2,401			13,698			—			16,099
Other operating (income) expense, net	(1,881		)	523			(2,145		)	—			(3,503		)
	(1,881		)	2,924			277,571			—			278,614
Equity in income of New Zealand joint venture	—			—			258			—			258
OPERATING INCOME (LOSS)	1,881			(2,924		)	116,406			—			115,363
Interest (expense) benefit	(3,275		)	(6,870		)	2,428			—			(7,717		)
Interest and miscellaneous income (expense), net	2,419			(222		)	(2,140		)	—			57
Equity in income from subsidiaries	146,710			153,444			—			(300,154		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	147,735			143,428			116,694			(300,154		)	107,703
Income tax expense (benefit)	—			3,282			(7,727		)	—			(4,445		)
INCOME FROM CONTINUING OPERATIONS	147,735			146,710			108,967			(300,154		)	103,258
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income taxes	—			—			44,477			—			44,477
NET INCOME	147,735			146,710			153,444			(300,154		)	147,735
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	975			975			975			(1,950		)	975
New Zealand joint venture cash flow hedges	554			554			554			(1,108		)	554
Gain from pension and postretirement plans, net of income tax	4,969			4,969			—			(4,969		)	4,969
Total other comprehensive income	6,498			6,498			1,529			(8,027		)	6,498
COMPREHENSIVE INCOME	$	154,233		$	153,208		$	154,973		$	(308,181	)	$	154,233

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended March 31, 2012
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	336,571		$	—		$	336,571
Costs and Expenses
Cost of sales	—			—			235,708			—			235,708
Selling and general expenses	—			3,311			15,954			—			19,265
Other operating expense (income), net	—			121			(1,260		)	—			(1,139		)
	—			3,432			250,402			—			253,834
Equity in income of New Zealand joint venture	—			—			13			—			13
OPERATING (EXPENSE) INCOME	—			(3,432		)	86,182			—			82,750
Interest expense	(1,249		)	(10,464		)	(112		)	—			(11,825		)
Interest and miscellaneous income (expense), net	1,912			119			(2,054		)	—			(23		)
Equity in income from subsidiaries	52,774			62,706			—			(115,480		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	53,437			48,929			84,016			(115,480		)	70,902
Income tax benefit (expense)	—			3,845			(22,148		)	—			(18,303		)
INCOME FROM CONTINUING OPERATIONS	53,437			52,774			61,868			(115,480		)	52,599
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income taxes	—			—			838			—			838
NET INCOME	53,437			52,774			62,706			(115,480		)	53,437
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	5,825			5,825			5,825			(11,650		)	5,825
New Zealand joint venture cash flow hedges	1,205			1,205			1,205			(2,410		)	1,205
Gain from pension and postretirement plans, net of income tax	3,140			3,140			2,380			(5,520		)	3,140
Total other comprehensive income	10,170			10,170			9,410			(19,580		)	10,170
COMPREHENSIVE INCOME	$	63,607		$	62,944		$	72,116		$	(135,060	)	$	63,607

	CONDENSED CONSOLIDATING BALANCE SHEETS As of March 31, 2013
	Rayonier Inc. (Parent Issuer)		Subsidiary Guarantors		Non- guarantors		Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	151,978	$	52,679	$	61,360	$	—		$	266,017
Accounts receivable, less allowance for doubtful accounts	27		485		105,181		—			105,693
Inventory	—		—		113,643		—			113,643
Deferred tax asset	—		—		66,509		—			66,509
Prepaid and other current assets	—		4,247		34,649		—			38,896
Total current assets	152,005		57,411		381,342		—			590,758
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		1,565,782		—			1,565,782
NET PROPERTY, PLANT AND EQUIPMENT	—		2,315		757,923		—			760,238
INVESTMENT IN JOINT VENTURE	—		—		73,830		—			73,830
INVESTMENT IN SUBSIDIARIES	1,599,115		2,472,796		—		(4,071,911		)	—
INTERCOMPANY NOTES RECEIVABLE	215,140		20,021		—		(235,161		)	—
OTHER ASSETS	4,042		32,912		174,723		—			211,677
TOTAL ASSETS	$	1,970,302	$	2,585,455	$	2,953,600	$	(4,307,072	)	$	3,202,285
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	1,685	$	106,808	$	—		$	108,493
Current maturities of long-term debt	50,000		—		—		—			50,000
Accrued taxes	—		14		30,045		—			30,059
Accrued payroll and benefits	—		8,578		9,893		—			18,471
Accrued interest	6,112		4,179		909		—			11,200
Accrued customer incentives	—		—		8,936		—			8,936
Other current liabilities	—		3,245		21,923		—			25,168
Current liabilities for dispositions and discontinued operations	—		—		8,398		—			8,398
Total current liabilities	56,112		17,701		186,912		—			260,725
LONG-TERM DEBT	375,000		698,916		76,555		—			1,150,471
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		71,799		—			71,799
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		129,743		29,086		—			158,829
OTHER NON-CURRENT LIABILITIES	—		14,007		7,264		—			21,271
INTERCOMPANY PAYABLE	—		125,973		168,076		(294,049		)	—
TOTAL SHAREHOLDERS’ EQUITY	1,539,190		1,599,115		2,413,908		(4,013,023		)	1,539,190
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,970,302	$	2,585,455	$	2,953,600	$	(4,307,072	)	$	3,202,285

	CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2012
	Rayonier Inc. (Parent Issuer)		Subsidiary Guarantors		Non- guarantors		Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	252,888	$	23,324	$	4,384	$	—		$	280,596
Accounts receivable, less allowance for doubtful accounts	—		386		99,973		—			100,359
Inventory	—		—		127,966		—			127,966
Deferred tax assets	—		—		15,845		—			15,845
Prepaid and other current assets	—		2,257		39,251		—			41,508
Total current assets	252,888		25,967		287,419		—			566,274
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		1,573,309		—			1,573,309
NET PROPERTY, PLANT AND EQUIPMENT	—		2,321		704,717		—			707,038
INVESTMENT IN JOINT VENTURE	—		—		72,419		—			72,419
INVESTMENT IN SUBSIDIARIES	1,445,205		2,354,270		—		(3,799,475		)	—
INTERCOMPANY NOTES RECEIVABLE	213,863		33,831		—		(247,694		)	—
OTHER ASSETS	4,148		32,961		166,802		—			203,911
TOTAL ASSETS	$	1,916,104	$	2,449,350	$	2,804,666	$	(4,047,169	)	$	3,122,951
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	2,132	$	68,249	$	—		$	70,381
Current maturities of long-term debt	150,000		—		—		—			150,000
Accrued taxes	—		485		13,339		—			13,824
Accrued payroll and benefits	—		15,044		13,024		—			28,068
Accrued interest	3,100		3,576		1,280		—			7,956
Accrued customer incentives	—		—		10,849		—			10,849
Other current liabilities	—		2,925		15,715		—			18,640
Current liabilities for dispositions and discontinued operations	—		—		8,105		—			8,105
Total current liabilities	153,100		24,162		130,561		—			307,823
LONG-TERM DEBT	325,000		718,321		76,731		—			1,120,052
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		73,590		—			73,590
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		129,156		30,426		—			159,582
OTHER NON-CURRENT LIABILITIES	—		16,432		7,468		—			23,900
INTERCOMPANY PAYABLE	—		116,074		137,797		(253,871		)	—
TOTAL SHAREHOLDERS’ EQUITY	1,438,004		1,445,205		2,348,093		(3,793,298		)	1,438,004
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,916,104	$	2,449,350	$	2,804,666	$	(4,047,169	)	$	3,122,951

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2013
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	13,984		$	22,259		$	58,980		$	(5,563	)	$	89,660
INVESTING ACTIVITIES
Capital expenditures	—			(89		)	(32,575		)	—			(32,664		)
Purchase of timberlands	—			—			(1,560		)	—			(1,560		)
Jesup mill cellulose specialties expansion	—			—			(36,734		)	—			(36,734		)
Proceeds from the disposition of Wood Products business	—			—			83,741			—			83,741
Change in restricted cash	—			—			9,908			—			9,908
Investment in Subsidiaries	—			32,391			—			(32,391		)	—
Other	—			—			1,790			—			1,790
CASH PROVIDED BY INVESTING ACTIVITIES	—			32,302			24,570			(32,391		)	24,481
FINANCING ACTIVITIES
Issuance of debt	100,000			—			—			—			100,000
Repayment of debt	(150,000		)	(20,000		)	—			—			(170,000		)
Dividends paid	(57,744		)	—			—			—			(57,744		)
Proceeds from the issuance of common shares	4,091			—			—			—			4,091
Excess tax benefits on stock-based compensation	—			—			6,191			—			6,191
Repurchase of common shares	(11,241		)	—			—			—			(11,241		)
Intercompany distributions	—			(5,206		)	(32,748		)	37,954			—
CASH USED FOR FINANCING ACTIVITIES	(114,894		)	(25,206		)	(26,557		)	37,954			(128,703		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			(17		)	—			(17		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(100,910		)	29,355			56,976			—			(14,579		)
Balance, beginning of year	252,888			23,324			4,384			—			280,596
Balance, end of period	$	151,978		$	52,679		$	61,360		$	—		$	266,017

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2012
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES	$	(14,838	)	$	33,980		$	105,616		$	(13,404	)	$	111,354
INVESTING ACTIVITIES
Capital expenditures	—			(55		)	(42,024		)	—			(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		)	8,805			—			8,736
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	—			650			(73,543		)	(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			(29,016		)	14,178			—
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	146,464			(15,162		)	(25,070		)	14,178			120,410
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			(125		)	—			(125		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	131,626			19,468			6,878			—			157,972
Balance, beginning of year	—			68,953			9,650			—			78,603
Balance, end of period	$	131,626		$	88,421		$	16,528		$	—		$	236,575

XML

Consolidated Statements of Cash Flows (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Investing Activities:
Jesup mill cellulose specialties expansion, gross purchases	$ 57,693	$ 41,051
Jesup mill cellulose specialties expansion, purchases on account	$ 20,959	$ 15,025

XML

Consolidated Statements of Income and Comprehensive Income (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Income from discontinued operations, income tax expense	$ 22,273	$ 422
Gain from pension and postretirement benefit plans, income tax expense	$ 2,204	$ 1,368

XML

Guarantees (Notes)

3 Months Ended

Mar. 31, 2013

Guarantees [Abstract]

Guarantees [Text Block]

10. GUARANTEES

The Company provides financial guarantees as required by creditors, insurance programs, and state and foreign governmental agencies. As of March 31, 2013, the following financial guarantees were outstanding:

Financial Commitments	Maximum Potential Payment		Carrying Amount of Liability
Standby letters of credit (a)	$	18,205	$	15,000
Guarantees (b)	2,254		43
Surety bonds (c)	7,231		1,388
Total financial commitments	$	27,690	$	16,431

(a) Approximately $15 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 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 $2.3 million of obligations of a special-purpose entity that was established to complete the monetization. At March 31, 2013, 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 2013 and 2014 and are expected to be renewed as required.

XML

Document and Entity Information Document	3 Months Ended
	Mar. 31, 2013	Apr. 18, 2013
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2013
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q1
Trading Symbol	RYN
Entity Registrant Name	RAYONIER INC.
Entity Central Index Key	0000052827
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		126,025,778

XML

Liabilities for Dispositions and Discontinued Operations (Notes)

3 Months Ended

Mar. 31, 2013

Liabilities of Disposal Group, Including Discontinued Operation [Abstract]

Liabilities for Dispositions and Discontinued Operations [Text Block]

11. LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS

An analysis of the liabilities for dispositions and discontinued operations follows:

	March 31,			December 31,
	2013			2012
Balance, beginning of period	$	81,695		$	90,824
Expenditures charged to liabilities	(1,631		)	(9,926		)
Increase to liabilities	133			797
Balance, end of period	80,197			81,695
Less: Current portion	(8,398		)	(8,105		)
Non-current portion	$	71,799		$	73,590

The Company is exposed to the risk of reasonably possible additional losses in excess of the established liabilities. As of March 31, 2013, 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.

The Company believes established liabilities are sufficient for probable costs expected to be incurred over the next 20 years with respect to its dispositions and discontinued operations. 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.

XML

Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
CURRENT ASSETS
Cash and cash equivalents	$ 266,017	$ 280,596
Accounts receivable, less allowance for doubtful accounts of $503 and $417	105,693	100,359
Inventory
Finished goods	95,614	103,568
Work in progress	2,404	4,446
Raw materials	13,482	17,602
Manufacturing and maintenance supplies	2,143	2,350
Total inventory	113,643	127,966
Deferred tax assets	66,509	15,845
Prepaid and other current assets	38,896	41,508
Total current assets	590,758	566,274
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	1,565,782	1,573,309
PROPERTY, PLANT AND EQUIPMENT
Land	21,804	27,383
Buildings	134,337	147,445
Machinery and equipment	1,389,212	1,444,012
Construction in progress	327,353	268,459
Total property, plant and equipment, gross	1,872,706	1,887,299
Less—accumulated depreciation	(1,112,468)	(1,180,261)
Total property, plant and equipment, net	760,238	707,038
INVESTMENT IN JOINT VENTURE (Note 6)	73,830	72,419
OTHER ASSETS	211,677	203,911
TOTAL ASSETS	3,202,285	3,122,951
CURRENT LIABILITIES
Accounts payable	108,493	70,381
Current maturities of long-term debt	50,000	150,000
Accrued taxes	30,059	13,824
Accrued payroll and benefits	18,471	28,068
Accrued interest	11,200	7,956
Accrued customer incentives	8,936	10,849
Other current liabilities	25,168	18,640
Current liabilities for dispositions and discontinued operations (Note 11)	8,398	8,105
Total current liabilities	260,725	307,823
LONG-TERM DEBT	1,150,471	1,120,052
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS (Note 11)	71,799	73,590
PENSION AND OTHER POSTRETIREMENT BENEFITS (Note 13)	158,829	159,582
OTHER NON-CURRENT LIABILITIES	21,271	23,900
COMMITMENTS AND CONTINGENCIES (Note 10 and 12)
SHAREHOLDERS’ EQUITY
Common Shares, 480,000,000 shares authorized, 125,903,058 and 123,332,444 shares issued and outstanding	673,098	670,749
Retained earnings	968,973	876,634
Accumulated other comprehensive loss	(102,881)	(109,379)
TOTAL SHAREHOLDERS' EQUITY	1,539,190	1,438,004
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 3,202,285	$ 3,122,951

XML

Restricted Deposits (Notes)

3 Months Ended

Mar. 31, 2013

Restricted Cash and Investments [Abstract]

Restricted Deposits [Text Block]

5. RESTRICTED DEPOSITS

In order to qualify for like-kind exchange ("LKE") treatment, the proceeds from real estate sales must be deposited with a third-party intermediary. These proceeds are accounted for as restricted cash until a suitable replacement property is acquired. In the event LKE purchases are not completed, the proceeds are returned to the Company after 180 days and reclassified as available cash. As of March 31, 2013 and December 31, 2012, the Company had $0.7 million and $10.6 million, respectively, of proceeds from real estate sales classified as restricted cash in Other Assets, which were deposited with an LKE intermediary.

XML

Income Taxes (Notes)

3 Months Ended

Mar. 31, 2013

Income Tax Disclosure [Abstract]

Income Taxes [Text Block]

4. INCOME TAXES

Rayonier is a real estate investment trust ("REIT"). In general, only its taxable REIT subsidiaries, whose businesses include the Company's non-REIT qualified activities, are subject to corporate income taxes. However, the Company was subject to U.S. federal corporate income tax on built-in gains (the excess of fair market value over tax basis for property held upon REIT election at January 1, 2004) on taxable sales of such property during calendar years 2004 through 2010. In 2011, the law provided a built-in-gains tax holiday. In 2013, the law provided a built-in gains tax holiday for 2012 (retroactive) and 2013 which will impact the Company's 2013 provision. Accordingly, the provision for corporate income taxes relates principally to current and deferred taxes on taxable REIT subsidiaries' income and certain property sales.

Alternative Fuel Mixture Credit ("AFMC") and Cellulosic Biofuel Producer Credit ("CBPC")

The U.S. Internal Revenue Code allowed two credits for taxpayers that produced and used an alternative fuel in the operation of their business through December 31, 2009. The AFMC is a $.50 per gallon refundable tax credit (which is not taxable), while the CBPC is a $1.01 per gallon credit that is nonrefundable, taxable and has limitations based on an entity's tax liability. Rayonier produces and uses an alternative fuel ("black liquor") at its Jesup, Georgia and Fernandina Beach, Florida performance fibers mills, which qualified for both credits. The Company claimed the AFMC on its 2009 tax return.

In the first quarter of 2013, management approved a $70 million tax payment to exchange approximately 120 million gallons of black liquor previously claimed for the AFMC for the CBPC. As a result, the Company recorded a $19 million discrete tax benefit in the current period reflecting reduced future tax payments of $89 million, including approximately $60 million realized during the remainder of 2013 and $29 million in the first half of 2014. There was no exchange of AFMC for CBPC in first quarter 2012. For additional information on the AFMC and CBPC, see Note 8 — Income Taxes in the Company's Annual Report on Form 10-K for the year ended December 31, 2012.

Provision for Income Taxes from Continuing Operations

The Company's effective tax rate is below the 35 percent U.S. statutory tax rate primarily due to tax benefits associated with being a REIT. The Company's effective tax rate in 2013 was lower than 2012 primarily due to recording the AFMC exchange and the federal research and experimentation tax credit (which was retroactively enacted in 2013).

The table below reconciles the U.S. statutory rate to the Company's effective tax rate for each period presented (in millions of dollars).

	Three Months Ended March 31,
	2013					2012
Income tax expense at federal statutory rate	$	38		35.0	%	$	25		35.0	%
REIT income not subject to tax	(11		)	(10.1	)%	(5		)	(7.7	)%
Other	(2		)	(1.5	)%	(1		)	(0.8	)%
Income tax expense before discrete items	25			23.4	%	19			26.5	%
Exchange of AFMC for CBPC	(19		)	(17.5	)%	—			—	%
Other	(2		)	(1.8	)%	(1		)	(0.7	)%
Income tax expense as reported	$	4		4.1	%	$	18		25.8	%

Provision for Income Taxes from Discontinued Operations

In the first quarter, Rayonier completed the sale of its Wood Products business for $80 million plus a working capital adjustment . For the three months ended March 31, 2013 and 2012, income tax expense related to discontinued operations was $22.3 million ($21.4 million from the gain on sale) and $0.4 million, respectively. See Note 2 — Sale of Wood Products Business for additional information.

XML

Other Operating Income, Net (Notes)

3 Months Ended

Mar. 31, 2013

Other Operating Income, Net [Abstract]

Other Income and Other Expense Disclosure [Text Block]

16. OTHER OPERATING INCOME (EXPENSE), NET

Other operating income (expense), net was comprised of the following:

	Three Months Ended March 31,
	2013			2012
Lease income, primarily from hunting leases	$	2,462		$	2,385
Other non-timber income	474			842
Foreign currency loss	(184		)	(865		)
Loss on sale or disposal of property, plant & equipment	(429		)	(1,021		)
Gain on foreign currency forward contracts	1,881			—
Miscellaneous expense, net	(701		)	(202		)
Total	$	3,503		$	1,139

XML

Contingencies (Notes)

3 Months Ended

Mar. 31, 2013

Loss Contingency [Abstract]

Contingencies [Text Block]

12. CONTINGENCIES

Rayonier is engaged in various legal actions, including certain environmental proceedings, and has been named as a defendant in various other lawsuits and claims arising in the normal course of business. While the Company has procured reasonable and customary insurance covering risks normally occurring in connection with its businesses, it has in certain cases retained some risk through the operation of self-insurance, primarily in the areas of workers’ compensation, property insurance and general liability. These other lawsuits and claims, either individually or in the aggregate, are not expected to have a material adverse effect on the Company’s financial position, results of operations, or cash flow.

XML

Segment and Geographical Information (Notes)

3 Months Ended

Mar. 31, 2013

Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]

Segment and Geographical Information [Text Block]

8. SEGMENT AND GEOGRAPHICAL INFORMATION

Rayonier operates in three reportable business segments: Forest Resources, Real Estate and Performance Fibers. Prior to the first quarter of 2013, the Company operated in four reportable business segments, which included Wood Products. In March 2013, the Company sold its Wood Products business and its operations are shown as discontinued operations for all periods presented. See Note 2 — Sale of Wood Products Business for additional information.

Forest Resources sales include all activities related to the harvesting of timber. Real Estate sales include all property sales, including those designated for higher and better use ("HBU"). The assets of the Real Estate segment include HBU property held by the Company’s real estate subsidiary, TerraPointe LLC. The Performance Fibers segment includes two major product lines, cellulose specialties and absorbent materials. The Company’s remaining operations include harvesting and selling timber acquired from third parties (log trading). These operations are reported in "Other Operations." Sales between operating segments are made based on estimated fair market value, and intercompany sales, purchases and profits (losses) are eliminated in consolidation. The Company evaluates financial performance based on the operating income of the segments.

Operating income (loss) as presented in the Consolidated Statements of Income and Comprehensive Income is equal to segment income (loss). Certain income (loss) items in the Consolidated Statements of Income and Comprehensive Income are not allocated to segments. These items, which include gains (losses) from certain asset dispositions, interest income (expense), miscellaneous income (expense) and income tax (expense) benefit, are not considered by management to be part of segment operations.

Total assets, sales, operating income (loss) and depreciation, depletion and amortization by segment including Corporate were as follows:

	March 31,		December 31,
ASSETS	2013		2012
Forest Resources	$	1,722,413	$	1,690,030
Real Estate	102,374		112,647
Performance Fibers	973,786		902,309
Wood Products (a)	—		18,454
Other Operations	31,238		23,296
Corporate and other	372,474		376,215
Total	$	3,202,285	$	3,122,951

(a) The Company sold its Wood Products segment during the first quarter of 2013. See Note 2 — Sale of Wood Products Business for additional information.

	Three Months Ended March 31,
SALES	2013			2012
Forest Resources	$	57,102		$	52,195
Real Estate	24,297			12,647
Performance Fibers	284,188			250,855
Other Operations	28,227			21,140
Intersegment Eliminations (b)	(95		)	(266		)
Total	$	393,719		$	336,571

(b) Intersegment eliminations primarily reflect sales from our Forest Resources segment to our Performance Fibers segment.

	Three Months Ended March 31,
OPERATING INCOME(LOSS)	2013			2012
Forest Resources	$	13,255		$	8,005
Real Estate	16,842			6,478
Performance Fibers	91,670			80,630
Other Operations	165			(931		)
Corporate and other	(6,569		)	(11,432		)
Total	$	115,363		$	82,750

	Three Months Ended March 31,
DEPRECIATION, DEPLETION AND AMORTIZATION	2013		2012
Forest Resources	$	16,444	$	16,833
Real Estate	4,177		1,845
Performance Fibers	15,153		11,361
Corporate and other	218		374
Total	$	35,992	$	30,413

XML

Consolidating Financial Statements Condensed Consolidating Statements of Income and Comprehensive Income (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2013	Mar. 31, 2012	Dec. 31, 2012
Income Statement [Abstract]
SALES	$ 393,719	$ 336,571
Cost of sales	266,018	235,708
Selling and general expenses	16,099	19,265
Other operating (income) expense, net	(3,503)	(1,139)
Costs and Expenses, Total	278,614	253,834
Equity in income (loss) of New Zealand joint venture	258	13
OPERATING (LOSS) INCOME	115,363	82,750
Interest Expense	(7,717)	(11,825)
Interest and miscellaneous income (expense), net	57	(23)
Equity in income from subsidiaries	0	0
INCOME BEFORE INCOME TAXES	107,703	70,902
Income tax benefit (expense)	(4,445)	(18,303)
Income (Loss) from Continuing Operations Attributable to Parent	103,258	52,599
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent	44,477	838
NET INCOME	147,735	53,437	278,685
Foreign currency translation adjustment	975	5,825	4,352
New Zealand joint venture cash flow hedges	554	1,205	213
Gain from pension and postretirement plans, net of income tax	4,969	3,140	(496)
Total other comprehensive income	6,498	10,170
COMPREHENSIVE INCOME	154,233	63,607
Parent Company [Member]
Income Statement [Abstract]
SALES	0	0
Cost of sales	0	0
Selling and general expenses	0	0
Other operating (income) expense, net	(1,881)	0
Costs and Expenses, Total	(1,881)	0
Equity in income (loss) of New Zealand joint venture	0	0
OPERATING (LOSS) INCOME	1,881	0
Interest Expense	(3,275)	(1,249)
Interest and miscellaneous income (expense), net	2,419	1,912
Equity in income from subsidiaries	146,710	52,774
INCOME BEFORE INCOME TAXES	147,735	53,437
Income tax benefit (expense)	0	0
Income (Loss) from Continuing Operations Attributable to Parent	147,735	53,437
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent	0	0
NET INCOME	147,735	53,437
Foreign currency translation adjustment	975	5,825
New Zealand joint venture cash flow hedges	554	1,205
Gain from pension and postretirement plans, net of income tax	4,969	3,140
Total other comprehensive income	6,498	10,170
COMPREHENSIVE INCOME	154,233	63,607
Senior Exchangeable Notes due 2015 [Member] [Domain] | Guarantor Subsidiaries [Member]
Income Statement [Abstract]
SALES	0	0
Cost of sales	0	0
Selling and general expenses	2,401	3,311
Other operating (income) expense, net	523	121
Costs and Expenses, Total	2,924	3,432
Equity in income (loss) of New Zealand joint venture	0	0
OPERATING (LOSS) INCOME	(2,924)	(3,432)
Interest Expense	(252)	(238)
Interest and miscellaneous income (expense), net	529	1,327
Equity in income from subsidiaries	148,765	55,446
INCOME BEFORE INCOME TAXES	146,118	53,103
Income tax benefit (expense)	592	(329)
Income (Loss) from Continuing Operations Attributable to Parent	146,710	52,774
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent	0	0
NET INCOME	146,710	52,774
Foreign currency translation adjustment	975	5,825
New Zealand joint venture cash flow hedges	554	1,205
Gain from pension and postretirement plans, net of income tax	4,969	3,140
Total other comprehensive income	6,498	10,170
COMPREHENSIVE INCOME	153,208	62,944
Senior Exchangeable Notes due 2015 [Member] [Domain] | Consolidation, Eliminations [Member]
Income Statement [Abstract]
SALES	0	0
Cost of sales	0	0
Selling and general expenses	0	0
Other operating (income) expense, net	0	0
Costs and Expenses, Total	0	0
Equity in income (loss) of New Zealand joint venture	0	0
OPERATING (LOSS) INCOME	0	0
Interest Expense	0	0
Interest and miscellaneous income (expense), net	0	0
Equity in income from subsidiaries	(418,944)	(153,965)
INCOME BEFORE INCOME TAXES	(418,944)	(153,965)
Income tax benefit (expense)	0	0
Income (Loss) from Continuing Operations Attributable to Parent	(418,944)	(153,965)
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent	0	0
NET INCOME	(418,944)	(153,965)
Foreign currency translation adjustment	(2,190)	(11,548)
New Zealand joint venture cash flow hedges	(1,108)	(2,410)
Gain from pension and postretirement plans, net of income tax	(8,981)	(7,900)
Total other comprehensive income	(12,279)	(21,858)
COMPREHENSIVE INCOME	(431,223)	(175,823)
Senior Exchangeable Notes due 2015 [Member] [Domain] | Subsidiary Issuer [Member]
Income Statement [Abstract]
SALES	0	0
Cost of sales	0	0
Selling and general expenses	0	0
Other operating (income) expense, net	0	0
Costs and Expenses, Total	0	0
Equity in income (loss) of New Zealand joint venture	0	0
OPERATING (LOSS) INCOME	0	0
Interest Expense	(6,618)	(10,226)
Interest and miscellaneous income (expense), net	(751)	(1,208)
Equity in income from subsidiaries	123,469	45,745
INCOME BEFORE INCOME TAXES	116,100	34,311
Income tax benefit (expense)	2,690	4,174
Income (Loss) from Continuing Operations Attributable to Parent	118,790	38,485
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent	0	0
NET INCOME	118,790	38,485
Foreign currency translation adjustment	240	(102)
New Zealand joint venture cash flow hedges	0	0
Gain from pension and postretirement plans, net of income tax	4,012	2,380
Total other comprehensive income	4,252	2,278
COMPREHENSIVE INCOME	123,042	40,763
Senior Exchangeable Notes due 2015 [Member] [Domain] | Non-Guarantor Subsidiaries [Member]
Income Statement [Abstract]
SALES	393,719	336,571
Cost of sales	266,018	235,708
Selling and general expenses	13,698	15,954
Other operating (income) expense, net	(2,145)	(1,260)
Costs and Expenses, Total	277,571	250,402
Equity in income (loss) of New Zealand joint venture	258	13
OPERATING (LOSS) INCOME	116,406	86,182
Interest Expense	2,428	(112)
Interest and miscellaneous income (expense), net	(2,140)	(2,054)
Equity in income from subsidiaries	0	0
INCOME BEFORE INCOME TAXES	116,694	84,016
Income tax benefit (expense)	(7,727)	(22,148)
Income (Loss) from Continuing Operations Attributable to Parent	108,967	61,868
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent	44,477	838
NET INCOME	153,444	62,706
Foreign currency translation adjustment	975	5,825
New Zealand joint venture cash flow hedges	554	1,205
Gain from pension and postretirement plans, net of income tax	0	2,380
Total other comprehensive income	1,529	9,410
COMPREHENSIVE INCOME	154,973	72,116
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | Guarantor Subsidiaries [Member]
Income Statement [Abstract]
SALES	0	0
Cost of sales	0	0
Selling and general expenses	2,401	3,311
Other operating (income) expense, net	523	121
Costs and Expenses, Total	2,924	3,432
Equity in income (loss) of New Zealand joint venture	0	0
OPERATING (LOSS) INCOME	(2,924)	(3,432)
Interest Expense	(6,870)	(10,464)
Interest and miscellaneous income (expense), net	(222)	119
Equity in income from subsidiaries	153,444	62,706
INCOME BEFORE INCOME TAXES	143,428	48,929
Income tax benefit (expense)	3,282	3,845
Income (Loss) from Continuing Operations Attributable to Parent	146,710	52,774
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent	0	0
NET INCOME	146,710	52,774
Foreign currency translation adjustment	975	5,825
New Zealand joint venture cash flow hedges	554	1,205
Gain from pension and postretirement plans, net of income tax	4,969	3,140
Total other comprehensive income	6,498	10,170
COMPREHENSIVE INCOME	153,208	62,944
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | Consolidation, Eliminations [Member]
Income Statement [Abstract]
SALES	0	0
Cost of sales	0	0
Selling and general expenses	0	0
Other operating (income) expense, net	0	0
Costs and Expenses, Total	0	0
Equity in income (loss) of New Zealand joint venture	0	0
OPERATING (LOSS) INCOME	0	0
Interest Expense	0	0
Interest and miscellaneous income (expense), net	0	0
Equity in income from subsidiaries	(300,154)	(115,480)
INCOME BEFORE INCOME TAXES	(300,154)	(115,480)
Income tax benefit (expense)	0	0
Income (Loss) from Continuing Operations Attributable to Parent	(300,154)	(115,480)
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent	0	0
NET INCOME	(300,154)	(115,480)
Foreign currency translation adjustment	(1,950)	(11,650)
New Zealand joint venture cash flow hedges	(1,108)	(2,410)
Gain from pension and postretirement plans, net of income tax	(4,969)	(5,520)
Total other comprehensive income	(8,027)	(19,580)
COMPREHENSIVE INCOME	(308,181)	(135,060)
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | Non-Guarantor Subsidiaries [Member]
Income Statement [Abstract]
SALES	393,719	336,571
Cost of sales	266,018	235,708
Selling and general expenses	13,698	15,954
Other operating (income) expense, net	(2,145)	(1,260)
Costs and Expenses, Total	277,571	250,402
Equity in income (loss) of New Zealand joint venture	258	13
OPERATING (LOSS) INCOME	116,406	86,182
Interest Expense	2,428	(112)
Interest and miscellaneous income (expense), net	(2,140)	(2,054)
Equity in income from subsidiaries	0	0
INCOME BEFORE INCOME TAXES	116,694	84,016
Income tax benefit (expense)	(7,727)	(22,148)
Income (Loss) from Continuing Operations Attributable to Parent	108,967	61,868
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent	44,477	838
NET INCOME	153,444	62,706
Foreign currency translation adjustment	975	5,825
New Zealand joint venture cash flow hedges	554	1,205
Gain from pension and postretirement plans, net of income tax	0	2,380
Total other comprehensive income	1,529	9,410
COMPREHENSIVE INCOME	$ 154,973	$ 72,116

XML

Joint Venture Investment (Notes)

3 Months Ended

Mar. 31, 2013

Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract]

Joint Venture Investment [Text Block]

6. JOINT VENTURE INVESTMENT

At March 31, 2013, the Company held a 26 percent interest in Matariki Forestry Group ("Matariki"), a joint venture ("JV") that owns or leases approximately 0.3 million acres of New Zealand timberlands. In addition to the investment, Rayonier New Zealand Limited ("RNZ"), a wholly-owned subsidiary of Rayonier Inc., serves as the manager of the JV forests and operates a log trading business.

Rayonier’s investment in the JV is accounted for using the equity method of accounting. Income from the JV is reported in the Forest Resources segment as operating income since the Company manages the forests and its JV interest is an extension of the Company’s operations. A portion of Rayonier’s equity method investment is recorded at historical cost which generates a difference between the book value of the Company’s investment and its proportionate share of the JV’s net assets. The difference represents the Company’s unrecognized gain from RNZ’s sale of timberlands to the JV in 2005. The deferred gain is recognized on a straight-line basis over the estimated number of years the JV expects to harvest the timberlands.

Subsequent Event

In April 2013, Rayonier acquired an additional 39 percent ownership interest in the Matariki JV for approximately $140 million. As a 65 percent owner, the Company will be required to consolidate 100 percent of the JV's assets, liabilities and results of operations and record the non-controlling partner's 35 percent interest beginning in the second quarter of 2013.

XML

Shareholders' Equity (Notes)

3 Months Ended

Mar. 31, 2013

Stockholders' Equity Note [Abstract]

Shareholders' Equity [Text Block]

7. SHAREHOLDERS’ EQUITY

An analysis of shareholders’ equity for the three months ended March 31, 2013 and the year ended December 31, 2012 is shown below (share amounts not in thousands):

	Common Shares					Retained Earnings			Accumulated Other Comprehensive Income/(Loss)			Shareholders’ Equity
	Shares		Amount
Balance, December 31, 2011	122,035,177		$	630,286		$	806,235		$	(113,448	)	$	1,323,073
Net income	—		—			278,685			—			278,685
Dividends ($1.68 per share)	—		—			(208,286		)	—			(208,286		)
Issuance of shares under incentive stock plans	1,467,024		25,495			—			—			25,495
Stock-based compensation	—		15,116			—			—			15,116
Excess tax benefit on stock-based compensation	—		7,635			—			—			7,635
Repurchase of common shares	(169,757	)	(7,783		)	—			—			(7,783		)
Net loss from pension and postretirement plans	—		—			—			(496		)	(496		)
Foreign currency translation adjustment	—		—			—			4,352			4,352
Joint venture cash flow hedges	—		—			—			213			213
Balance, December 31, 2012	123,332,444		$	670,749		$	876,634		$	(109,379	)	$	1,438,004
Net income	—		—			147,735			—			147,735
Dividends ($0.44 per share)	—		—			(55,396		)	—			(55,396		)
Issuance of shares under incentive stock plans	743,381		4,091			—			—			4,091
Stock-based compensation	—		3,308			—			—			3,308
Excess tax benefit on stock-based compensation	—		6,191			—			—			6,191
Repurchase of common shares	(209,743	)	(11,241		)	—			—			(11,241		)
Maturity of warrants (Note 14)	2,036,976		—			—			—			—
Gain from pension and postretirement plans	—		—			—			4,969			4,969
Foreign currency translation adjustment	—		—			—			975			975
Joint venture cash flow hedges	—		—			—			554			554
Balance, March 31, 2013	125,903,058		$	673,098		$	968,973		$	(102,881	)	$	1,539,190

XML

Fair Value Measurements (Notes)

3 Months Ended

Mar. 31, 2013

Fair Value Disclosures [Abstract]

Fair Value Measurements [Text Block]

9. FAIR VALUE MEASUREMENTS

A three-level hierarchy that prioritizes the inputs used to measure fair value was established in the Accounting Standards Codification as follows:

Level 1 — Quoted prices in active markets for identical assets or liabilities.

Level 2 —Observable inputs other than quoted prices included in Level 1.

Level 3 —Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Foreign Currency Forward Contracts

As of March 31, 2013 and 2012, the impact of the Company's derivative instruments and their location within the Consolidated Statements of Income and Comprehensive Income was as follows:

		March 31, 2013				March 31, 2012
	Location of Gain Recognized in Income	Carrying Amount		Fair Value (Level 1)		Carrying Amount	Fair Value (Level 1)
Foreign Currency Forward Contracts (a)	Other Operating Income, net	$	1,881	$	1,881	—	—

(a) Foreign currency forward contracts are recorded in "Other Current Assets."

The Company entered into foreign currency forward contracts to hedge the exchange rate risk between the US dollar and the New Zealand dollar in connection with the Company's purchase of an additional 39 percent interest in the JV. The foreign currency forward contracts were settled in April 2013. See Note 6 — Joint Venture Investment for additional information on the purchase.

Fair Value of Financial Instruments

The following table presents the carrying amount, estimated fair values and categorization under the fair value hierarchy of financial instruments held by the Company at March 31, 2013 and December 31, 2012, using market information and what management believes to be appropriate valuation methodologies under generally accepted accounting principles:

	March 31, 2013								December 31, 2012
Asset (liability)	Carrying Amount			Fair Value					Carrying Amount			Fair Value
				Level 1		Level 2						Level 1		Level 2
Cash and cash equivalents	$	266,017		$	266,017	$	—		$	280,596		$	280,596	$	—
Restricted cash (a)	651			651		—			10,559			10,559		—
Current maturities of long-term debt	(50,000		)	—		(50,000		)	(150,000		)	—		(150,000		)
Long-term debt	(1,150,471		)	—		(1,307,144		)	(1,120,052		)	—		(1,250,341		)

(a) Restricted cash is recorded in "Other Assets" and represents the proceeds from LKE sales deposited with a third-party intermediary.

Rayonier uses the following methods and assumptions in estimating the fair value of its financial instruments:

Cash and cash equivalents and Restricted cash — The carrying amount is equal to fair market value.

Debt — The fair value of fixed rate debt is based upon quoted market prices for debt with similar terms and maturities.

Variable Interest Entity

Rayonier holds a variable interest in a bankruptcy-remote, limited liability subsidiary ("special-purpose entity") which was created in 2004 when Rayonier monetized a $25.0 million installment note and letter of credit received in connection with a timberland sale. The Company contributed the note and a letter of credit to the special-purpose entity and using the installment note and letter of credit as collateral, the special-purpose entity issued $22.6 million of 15-year Senior Secured Notes and remitted cash of $22.6 million to the Company. There are no restrictions related to the transferred financial assets. Rayonier maintains a $2.6 million interest in the entity and receives immaterial cash payments equal to the excess of interest received on the installment note over the interest paid on the Senior Secured Notes. The Company's interest is recorded at fair value and is included in "Other Assets" in the Consolidated Balance Sheets.

In addition, the Company calculated and recorded a de minimus guarantee liability to reflect its obligation of up to $2.3 million under a make-whole agreement pursuant to which it guaranteed certain obligations of the entity. This guarantee obligation is also collateralized by the letter of credit. The Company's interest in the entity, together with the make-whole agreement, represents the maximum exposure to loss as a result of the Company's involvement with the special-purpose entity. Upon maturity of the Senior Secured Notes in 2019 and termination of the special-purpose entity, Rayonier will receive the remaining $2.6 million of cash. The Company determined, based upon an analysis under the variable interest entity guidance, that it does not have the power to direct activities that most significantly impact the entity's economic success. Therefore, Rayonier is not the primary beneficiary and is not required to consolidate the entity.

Assets measured at fair value on a recurring basis are summarized below:

Asset	Carrying Value at March 31, 2013		Level 2		Carrying Value at December 31, 2012		Level 2
Investment in special-purpose entity	$	2,666	$	2,666	$	2,671	$	2,671

The fair value of the investment in the special-purpose entity is determined by summing the discounted value of future principal and interest payments Rayonier will receive from the special-purpose entity. The interest rate of a similar instrument is used to determine the discounted value of the payments.

XML

Employee Benefit Plans (Tables)

3 Months Ended

Mar. 31, 2013

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

Schedule of Net Benefit Costs [Table Text Block]

The net pension and postretirement benefit costs that have been recognized during the stated periods are shown in the following tables:

	Pension						Postretirement
	Three Months Ended March 31,						Three Months Ended March 31,
	2013			2012			2013		2012
Components of Net Periodic Benefit Cost
Service cost	$	2,419		$	1,940		$	249	$	210
Interest cost	4,834			3,989			240		223
Expected return on plan assets	(7,424		)	(5,879		)	—		—
Amortization of prior service cost	388			302			6		6
Amortization of losses	5,727			4,056			218		144
Net periodic benefit cost	$	5,944		$	4,408		$	713	$	583

XML

Guarantees (Details) (USD $)	3 Months Ended
	Mar. 31, 2013
Guarantor Obligations [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 27,690,000
Guarantor Obligations, Current Carrying Value	16,431,000
Variable Interest Entity Recorded Liability For Performance Obligation	de minimus guarantee liability
Financial Standby Letter of Credit [Member]
Guarantor Obligations [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted	18,205,000	[1]
Guarantor Obligations, Current Carrying Value	15,000,000	[1]
Guarantor Obligations Collateral for Industrial Revenue Bonds	15,000,000
Guarantor Obligations, Term	various dates during 2013
Financial Guarantee [Member]
Guarantor Obligations [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted	2,254,000
Guarantor Obligations, Current Carrying Value	43,000	[2]
Variable Interest Entity Recorded Liability For Performance Obligation	de minimus liability
Surety Bonds [Member]
Guarantor Obligations [Line Items]
Guarantor Obligations, Maximum Exposure, Undiscounted	7,231,000	[3]
Guarantor Obligations, Current Carrying Value	$ 1,388,000	[3]
Guarantor Obligations, Term	various dates between 2013 and 2014

[1] Approximately $15 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 2013 and will be renewed as required.

[2] 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 $2.3 million of obligations of a special-purpose entity that was established to complete the monetization. At March 31, 2013, the Company has a de minimus liability to reflect the fair market value of its obligation to perform under the make-whole agreement.

[3] 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 2013 and 2014 and are expected to be renewed as required.

XML

Debt (Notes)

3 Months Ended

Mar. 31, 2013

Debt Disclosure [Abstract]

Debt [Text Block]

14. DEBT

The warrants sold in conjunction with the issuance of the 3.75% Senior Exchangeable Notes due 2012 began maturing on January 15, 2013 and continued to mature through March 27, 2013. As of March 31, 2013, 7,984,078 of the 8,313,511 warrants have settled, resulting in the issuance of 2,036,976 Rayonier common shares. The remaining warrants settled through April 2, 2013 and an additional 97,918 common shares were issued.

As of December 31, 2012, the $172.5 million4.50% Senior Exchangeable Notes due 2015 became exchangeable at the option of the holders for the calendar quarter ending March 31, 2013. Per the indenture, in order for the notes to become exchangeable, the Company's stock price must exceed 130 percent of the exchange price for 20 trading days during a period of 30 consecutive trading days as of the last day of the quarter. During the quarter ended March 31, 2013, the note holders did not elect to exercise the exchange option. Based upon the average stock price for the 30 trading days ended March 31, 2013, these notes again became exchangeable at the option of the holder for the calendar quarter ending June 30, 2013. The entire balance of the notes remained classified as long-term debt at March 31, 2013 due to the ability and intent of the Company to refinance them on a long-term basis.

During first quarter 2013, the Company made net repayments of $70 million on its $450 million unsecured revolving credit facility. The Company had $242 million of available borrowings under this facility at March 31, 2013.

There were no other significant changes to the Company's outstanding debt as reported in Note 11 — Debt of the Company's 2012 Annual Report on Form 10-K.

XML

Sale of Wood Products Business (Tables)

3 Months Ended

Mar. 31, 2013

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]

The major classes of Wood Products assets and liabilities included in the sale are as follows:

	March 1, 2013
Accounts receivable, net	$	4,127
Inventory	4,270
Prepaid and other current assets	2,053
Property, plant and equipment, net	9,990
Total assets	$	20,440
Total liabilities	$	596

The following table summarizes the operating results of the Company's discontinued operations and the related gain for the periods ended March 31, 2013 and 2012, as presented in "Income from discontinued operations, net" in the Consolidated Statements of Income and Comprehensive Income:

	Three Months Ended March 31,
	2013			2012
Sales	$	16,968		$	19,209
Cost of sales and other	(14,258		)	(17,949		)
Gain on sale of discontinued operations	64,040			—
Income from discontinued operations before income taxes	66,750			1,260
Income tax expense	(22,273		)	(422		)
Income from discontinued operations, net	$	44,477		$	838

Prior to the Wood Products sale, saw timber procurement services for and wood chip purchases from the lumber mills were intercompany transactions eliminated in consolidation as follows:

	Three Months Ended March 31,
	2013		2012
Wood chip purchases	$	1,650	$	3,234
Saw timber procurement services	223		287
Total intercompany	$	1,873	$	3,521

XML

Fair Value Measurements Variable Interest Entity (Details) (USD $)	3 Months Ended
	Mar. 31, 2013	Dec. 31, 2004
Variable Interest Entity [Line Items]
Type of Entity	bankruptcy-remote, limited liability subsidiary
Date involvement began		2004
Amount of installment note and letter of credit contributed to special purpose entity		$ 25,000,000
Amount of cash received		22,600,000
Interest cash payments received, net	immaterial cash payments
Classification of carrying amount of interest	"Other Assets"
Recorded liability for performance obligation	de minimus guarantee liability
Guarantor Obligations, Maximum Exposure, Undiscounted	27,690,000
Type of financial obligation	make-whole agreement
Cash to be received upon maturity	2,600,000
Variable Interest Entity, Not Primary Beneficiary [Member]
Variable Interest Entity [Line Items]
Amount of notes issued by special purpose entity		22,600,000
Term of notes issued by special purpose entity		15-year
Variable Interest Entity Investment	2,600,000
Maturity date of notes issued by special purpose entity	2019
Financial Guarantee [Member]
Variable Interest Entity [Line Items]
Recorded liability for performance obligation	de minimus liability
Guarantor Obligations, Maximum Exposure, Undiscounted	$ 2,254,000

XML

Earnings Per Common Share Schedule of Antidilutive Shares (Details)	3 Months Ended
	Mar. 31, 2013		Mar. 31, 2012
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the computations of diluted earnings per share	2,336,660		3,413,046
Stock options, performance and restricted shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the computations of diluted earnings per share	220,701		445,859
Assumed conversion of exchangeable note hedges
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the computations of diluted earnings per share	2,115,959	[1]	2,967,187	[1]

[1] The Senior Exchangeable Notes due 2012 (the "2012 Notes") matured in October 2012; however, no additional shares were issued due to offsetting exchangeable note hedges. Similarly, Rayonier will not issue additional shares upon maturity of the Senior Exchangeable Notes due 2015 (the "2015 Notes") due to offsetting hedges. 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 is excluded since they are anti-dilutive. As such, the dilutive effect of the assumed conversion of the 2012 Notes was only included for the three months ended March 31, 2012, while the effect of the 2015 Notes was included for both periods presented.The warrants sold in conjunction with the Notes due 2012 began maturing on January 15, 2013 and matured ratably through March 27, 2013. As a result, 2,036,976 shares were issued through the end of the first quarter and 97,918 shares issued in the first week of April. The dilutive impact of these warrants was calculated based on the amount of time they were outstanding before settlement during the first quarter. Rayonier will distribute additional shares upon maturity of the warrants for the Notes due 2015 if the stock price exceeds $39.43 per share. For additional information on the potential dilutive impact of the Senior Exchangeable Notes, warrants and exchangeable note hedges, see Note 11 — Debt in the 2012 Annual Report on Form 10-K and Note 14 — Debt of this Form 10-Q.

XML

Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2013	Dec. 31, 2012
Current Assets:
Accounts receivable, allowance for doubtful accounts	$ 503	$ 417
Shareholders' Equity:
Common stock, shares authorized	480,000,000	480,000,000
Common stock, shares issued	125,903,058	123,332,444
Common stock, shares outstanding	125,903,058	123,332,444

XML

Earnings Per Common Share (Notes)

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Common Share [Text Block]

3. EARNINGS PER COMMON SHARE

The following table provides details of the calculations of basic and diluted earnings per common share:

	Three Months Ended March 31,
	2013		2012
Income from continuing operations	$	103,258	$	52,599
Income from discontinued operations	44,477		838
Net income	$	147,735	$	53,437
Shares used for determining basic earnings per common share	124,479,865		122,352,435
Dilutive effect of:
Stock options	533,031		719,166
Performance and restricted shares	448,440		651,729
Assumed conversion of Senior Exchangeable Notes (a)	2,115,959		2,967,187
Assumed conversion of warrants (a) (b)	2,859,593		1,241,612
Shares used for determining diluted earnings per common share	130,436,888		127,932,129
Basic earnings per common share:
Continuing operations	$	0.83	$	0.43
Discontinued operations	0.36		0.01
Net income	$	1.19	$	0.44
Diluted earnings per common share:
Continuing operations	$	0.79	$	0.41
Discontinued operations	0.34		0.01
Net income	$	1.13	$	0.42

	Three Months Ended March 31,
	2013	2012
Anti-dilutive shares excluded from the computations of diluted earnings per share:
Stock options, performance and restricted shares	220,701	445,859
Assumed conversion of exchangeable note hedges (a)	2,115,959	2,967,187
Total	2,336,660	3,413,046

(a) The Senior Exchangeable Notes due 2012 (the "2012 Notes") matured in October 2012; however, no additional shares were issued due to offsetting exchangeable note hedges. Similarly, Rayonier will not issue additional shares upon maturity of the Senior Exchangeable Notes due 2015 (the "2015 Notes") due to offsetting hedges. 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 is excluded since they are anti-dilutive. As such, the dilutive effect of the assumed conversion of the 2012 Notes was only included for the three months ended March 31, 2012, while the effect of the 2015 Notes was included for both periods presented.

The warrants sold in conjunction with the Notes due 2012 began maturing on January 15, 2013 and matured ratably through March 27, 2013. As a result, 2,036,976 shares were issued through the end of the first quarter and 97,918 shares issued in the first week of April. The dilutive impact of these warrants was calculated based on the amount of time they were outstanding before settlement during the first quarter. Rayonier will distribute additional shares upon maturity of the warrants for the Notes due 2015 if the stock price exceeds $39.43 per share. For additional information on the potential dilutive impact of the Senior Exchangeable Notes, warrants and exchangeable note hedges, see Note 11 — Debt in the 2012 Annual Report on Form 10-K and Note 14 — Debtof this Form 10-Q.

(b) The higher shares used for the assumed conversion of the warrants were primarily due to an increase in the average stock price from $45.07 in first quarter 2012 to $55.47 in first quarter 2013.

XML

Other Operating Income, Net (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2013	Mar. 31, 2012
Other Operating Income, Net [Abstract]
Lease income, primarily from hunting leases	$ 2,462	$ 2,385
Other non-timber income	474	842
Foreign currency loss	(184)	(865)
Loss on sale or disposal of property, plant & equipment	(429)	(1,021)
Gain on foreign currency forward contracts	1,881	0
Miscellaneous expense, net	(701)	(202)
Total	$ 3,503	$ 1,139

XML

Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The following table provides details of the calculations of basic and diluted earnings per common share:

	Three Months Ended March 31,
	2013		2012
Income from continuing operations	$	103,258	$	52,599
Income from discontinued operations	44,477		838
Net income	$	147,735	$	53,437
Shares used for determining basic earnings per common share	124,479,865		122,352,435
Dilutive effect of:
Stock options	533,031		719,166
Performance and restricted shares	448,440		651,729
Assumed conversion of Senior Exchangeable Notes (a)	2,115,959		2,967,187
Assumed conversion of warrants (a) (b)	2,859,593		1,241,612
Shares used for determining diluted earnings per common share	130,436,888		127,932,129
Basic earnings per common share:
Continuing operations	$	0.83	$	0.43
Discontinued operations	0.36		0.01
Net income	$	1.19	$	0.44
Diluted earnings per common share:
Continuing operations	$	0.79	$	0.41
Discontinued operations	0.34		0.01
Net income	$	1.13	$	0.42

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

	Three Months Ended March 31,
	2013	2012
Anti-dilutive shares excluded from the computations of diluted earnings per share:
Stock options, performance and restricted shares	220,701	445,859
Assumed conversion of exchangeable note hedges (a)	2,115,959	2,967,187
Total	2,336,660	3,413,046

(a) The Senior Exchangeable Notes due 2012 (the "2012 Notes") matured in October 2012; however, no additional shares were issued due to offsetting exchangeable note hedges. Similarly, Rayonier will not issue additional shares upon maturity of the Senior Exchangeable Notes due 2015 (the "2015 Notes") due to offsetting hedges. 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 is excluded since they are anti-dilutive. As such, the dilutive effect of the assumed conversion of the 2012 Notes was only included for the three months ended March 31, 2012, while the effect of the 2015 Notes was included for both periods presented.

The warrants sold in conjunction with the Notes due 2012 began maturing on January 15, 2013 and matured ratably through March 27, 2013. As a result, 2,036,976 shares were issued through the end of the first quarter and 97,918 shares issued in the first week of April. The dilutive impact of these warrants was calculated based on the amount of time they were outstanding before settlement during the first quarter. Rayonier will distribute additional shares upon maturity of the warrants for the Notes due 2015 if the stock price exceeds $39.43 per share. For additional information on the potential dilutive impact of the Senior Exchangeable Notes, warrants and exchangeable note hedges, see Note 11 — Debt in the 2012 Annual Report on Form 10-K and Note 14 — Debtof this Form 10-Q.

(b) The higher shares used for the assumed conversion of the warrants were primarily due to an increase in the average stock price from $45.07 in first quarter 2012 to $55.47 in first quarter 2013.

XML

Basis Of Presentation (Details)	3 Months Ended
	Mar. 31, 2013
Subsequent Event [Line Items]
Subsequent Event, Date Evaluated, Description	The Company evaluated events and transactions that occurred after the balance sheet date but before financial statements were issued

XML

Employee Benefit Plans (Notes)

3 Months Ended

Mar. 31, 2013

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

Employee Benefit Plans [Text Block]

13. 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. Currently, all qualified 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.

The net pension and postretirement benefit costs that have been recognized during the stated periods are shown in the following tables:

	Pension						Postretirement
	Three Months Ended March 31,						Three Months Ended March 31,
	2013			2012			2013		2012
Components of Net Periodic Benefit Cost
Service cost	$	2,419		$	1,940		$	249	$	210
Interest cost	4,834			3,989			240		223
Expected return on plan assets	(7,424		)	(5,879		)	—		—
Amortization of prior service cost	388			302			6		6
Amortization of losses	5,727			4,056			218		144
Net periodic benefit cost	$	5,944		$	4,408		$	713	$	583

In 2013, the Company has no mandatory pension contribution requirements, but may make discretionary contributions.