Consolidating Financial Statements

12 Months Ended

Dec. 31, 2013

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Consolidating Financial Statements

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 August 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.

The subsidiary issuer and subsidiary guarantor are wholly-owned by the Parent Company, Rayonier Inc. The notes are fully and unconditionally guaranteed on a joint and several basis by the guarantor subsidiary and Rayonier Inc.

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Year Ended December 31, 2013
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	—		$	1,707,822		$	—		$	1,707,822
Costs and Expenses
Cost of sales	—			—			—			1,246,312			—			1,246,312
Selling and general expenses	—			9,821			—			55,022			—			64,843
Other operating (income) expense, net	(1,701		)	4,730			—			(12,516		)	—			(9,487		)
	(1,701		)	14,551			—			1,288,818			—			1,301,668
Equity in income of New Zealand joint venture	—			—			—			562			—			562
OPERATING INCOME (LOSS) BEFORE GAIN RELATED TO THE CONSOLIDATION OF THE NEW ZEALAND JOINT VENTURE	1,701			(14,551		)	—			419,566			—			406,716
Gain related to the consolidation of the New Zealand joint venture	—			—			—			16,098			—			16,098
OPERATING INCOME (LOSS)	1,701			(14,551		)	—			435,664			—			422,814
Interest expense	(13,088		)	(914		)	(27,516		)	(2,242		)	—			(43,760		)
Interest and miscellaneous income (expense), net	9,828			3,237			(7,534		)	(3,159		)	—			2,372
Equity in income from subsidiaries	373,455			384,567			245,126			—			(1,003,148		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	371,896			372,339			210,076			430,263			(1,003,148		)	381,426
Income tax benefit (expense)	—			1,116			11,895			(62,672		)	—			(49,661		)
INCOME FROM CONTINUING OPERATIONS	371,896			373,455			221,971			367,591			(1,003,148		)	331,765
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income tax	—			—			—			42,033						42,033
NET INCOME	371,896			373,455			221,971			409,624			(1,003,148		)	373,798
Less: Net income attributable to noncontrolling interest	—			—			—			1,902			—			1,902
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	371,896			373,455			221,971			407,722			(1,003,148		)	371,896
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	(1,915		)	(1,915		)	(72		)	(5,710		)	3,902			(5,710		)
New Zealand joint venture cash flows	3,286			3,286			637			3,629			(7,209		)	3,629
Amortization of pension and postretirement plans	61,869			61,869			20,589			20,589			(103,047		)	61,869
Total other comprehensive income	63,240			63,240			21,154			18,508			(106,354		)	59,788
COMPREHENSIVE INCOME	435,136			436,695			243,125			428,132			(1,109,502		)	433,586
Less: Comprehensive income attributable to noncontrolling interest	—			—			—			(1,550		)	—			(1,550		)
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$	435,136		$	436,695		$	243,125		$	429,682		$	(1,109,502	)	$	435,136

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Year Ended December 31, 2012
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	—		$	1,483,490		$	—		$	1,483,490
Costs and Expenses
Cost of sales	—			—			—			1,030,692			—			1,030,692
Selling and general expenses	—			10,575			—			56,382			—			66,957
Other operating expense (income), net	110			962			—			(15,241		)	—			(14,169		)
	110			11,537			—			1,071,833			—			1,083,480
Equity in income of New Zealand joint venture	—			—			—			550			—			550
OPERATING (LOSS) INCOME	(110		)	(11,537		)	—			412,207			—			400,560
Interest expense	(10,717		)	(941		)	(37,971		)	4,648			—			(44,981		)
Interest and miscellaneous income (expense), net	6,638			5,519			(3,334		)	(8,217		)	—			606
Equity in income from subsidiaries	282,874			289,486			232,871			—			(805,231		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	278,685			282,527			191,566			408,638			(805,231		)	356,185
Income tax benefit (expense)	—			347			15,076			(100,166		)	—			(84,743		)
INCOME FROM CONTINUING OPERATIONS	278,685			282,874			206,642			308,472			(805,231		)	271,442
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income tax	—			—			—			7,243			—			7,243
NET INCOME	278,685			282,874			206,642			315,715			(805,231		)	278,685
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment	4,352			4,352			(3		)	4,353			(8,702		)	4,352
New Zealand joint venture cash flows	213			213			—			213			(426		)	213
Amortization of pension and postretirement plans	(496		)	(496		)	(450		)	(450		)	1,396			(496		)
Total other comprehensive income (loss)	4,069			4,069			(453		)	4,116			(7,732		)	4,069
COMPREHENSIVE INCOME	$	282,754		$	286,943		$	206,189		$	319,831		$	(812,963	)	$	282,754

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Year Ended December 31, 2011
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	—		$	1,420,960		$	—		$	1,420,960
Costs and Expenses
Cost of sales	—			—			—			1,006,297			—			1,006,297
Selling and general expenses	—			10,710			—			54,541			—			65,251
Other operating expense (income), net	—			117			—			(3,911		)	—			(3,794		)
	—			10,827			—			1,056,927			—			1,067,754
Equity in income of New Zealand joint venture	—			—			—			4,088			—			4,088
OPERATING (LOSS) INCOME	—			(10,827		)	—			368,121			—			357,294
Interest expense	621			(1,133		)	(49,555		)	(708		)	—			(50,775		)
Interest and miscellaneous income (expense), net	—			5,280			(4,508		)	71			—			843
Equity in income from subsidiaries	275,384			281,892			170,048			—			(727,324		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	276,005			275,212			115,985			367,484			(727,324		)	307,362
Income tax benefit (expense)	—			172			19,733			(50,593		)	—			(30,688		)
INCOME FROM CONTINUING OPERATIONS	276,005			275,384			135,718			316,891			(727,324		)	276,674
DISCONTINUED OPERATIONS, NET
Loss from discontinued operations, net of income tax	—			—			—			(669		)	—			(669		)
NET INCOME	276,005			275,384			135,718			316,222			(727,324		)	276,005
OTHER COMPREHENSIVE LOSS
Foreign currency translation adjustment	3,546			3,546			(137		)	3,545			(6,954		)	3,546
New Zealand joint venture cash flows	(2,373		)	(2,373		)	—			(2,373		)	4,746			(2,373		)
Amortization of pension and postretirement plans	(46,263		)	(46,263		)	(35,575		)	(35,575		)	117,413			(46,263		)
Total other comprehensive loss	(45,090		)	(45,090		)	(35,712		)	(34,403		)	115,205			(45,090		)
COMPREHENSIVE INCOME	$	230,915		$	230,294		$	100,006		$	281,819		$	(612,119	)	$	230,915

	CONDENSED CONSOLIDATING BALANCE SHEETS As of December 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	$	130,181	$	304	$	10,719	$	58,440	$	—		$	199,644
Accounts receivable, less allowance for doubtful accounts	—		10		2,300		92,646		—			94,956
Inventory	—		—		—		138,818		—			138,818
Current deferred tax assets	—		—		681		38,419		—			39,100
Prepaid and other current assets	—		2,363		6		44,207		—			46,576
Total current assets	130,181		2,677		13,706		372,530		—			519,094
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		—		2,049,378		—			2,049,378
NET PROPERTY, PLANT AND     EQUIPMENT	—		2,612		—		858,209		—			860,821
INVESTMENT IN JOINT VENTURE	—		—		—		—		—			—
INVESTMENT IN SUBSIDIARIES	1,627,315		1,837,760		1,148,221		—		(4,613,296		)	—
INTERCOMPANY NOTES RECEIVABLE	228,032		—		20,659		—		(248,691		)	—
OTHER ASSETS	3,689		32,519		3,739		216,261		—			256,208
TOTAL ASSETS	$	1,989,217	$	1,875,568	$	1,186,325	$	3,496,378	$	(4,861,987	)	$	3,685,501
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	1,522	$	1,564	$	66,207	$	—		$	69,293
Current maturities of long-term debt	—		—		112,500		—		—			112,500
Accrued taxes	—		4,855		—		3,696		—			8,551
Uncertain tax positions	—		5,780		—		4,767		—			10,547
Accrued payroll and benefits	—		11,382		—		13,566		—			24,948
Accrued interest	3,047		538		2,742		22,816		(19,612		)	9,531
Accrued customer incentives	—		—		—		9,580		—			9,580
Other current liabilities	—		2,985		—		21,342		—			24,327
Current liabilities for dispositions and discontinued operations	—		—		—		6,835		—			6,835
Total current liabilities	3,047		27,062		116,806		148,809		(19,612		)	276,112
LONG-TERM DEBT	325,000		—		847,749		288,975		—			1,461,724
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		—		69,543		—			69,543
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		91,471		—		4,183		—			95,654
OTHER NON-CURRENT LIABILITIES	—		11,493		—		15,732		—			27,225
INTERCOMPANY PAYABLE	—		118,227		—		125,921		(244,148		)	—
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,661,170		1,627,315		221,770		2,749,142		(4,598,227		)	1,661,170
Noncontrolling interest	—		—		—		94,073		—			94,073
TOTAL SHAREHOLDERS’ EQUITY	1,661,170		1,627,315		221,770		2,843,215		(4,598,227		)	1,755,243
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,989,217	$	1,875,568	$	1,186,325	$	3,496,378	$	(4,861,987	)	$	3,685,501

	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
Uncertain tax positions	—		—		—		800		—			800
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		—		14,915		—			17,840
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 Year Ended December 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	$	407,712		$	417,074		$	84,000		$	491,762		$	(855,375	)	$	545,173
INVESTING ACTIVITIES
Capital expenditures	—			(663		)	—			(158,235		)	—			(158,898		)
Purchase of additional interest in New Zealand joint venture	—			—			—			(139,879		)	—			(139,879		)
Purchase of timberlands	—			—			—			(20,401		)	—			(20,401		)
Jesup mill cellulose specialties expansion	—			—			—			(141,143		)	—			(141,143		)
Proceeds from disposition of Wood Products business	—			—			—			62,720			—			62,720
Change in restricted cash	—			—			—			(58,385		)	—			(58,385		)
Investment in Subsidiaries	(138,178		)	(138,178		)	(247,114		)	—			523,470			—
Other	—			1,701			—			(14,635		)	—			(12,934		)
CASH USED FOR INVESTING ACTIVITIES	(138,178		)	(137,140		)	(247,114		)	(469,958		)	523,470			(468,920		)
FINANCING ACTIVITIES
Issuance of debt	175,000			—			390,000			57,885			—			622,885
Repayment of debt	(325,000		)	—			(151,525		)	(72,960		)	—			(549,485		)
Dividends paid	(237,016		)	—			—			—			—			(237,016		)
Proceeds from the issuance of common shares	10,101			—			—			—			—			10,101
Excess tax benefits on stock-based compensation	—			—			—			8,413			—			8,413
Repurchase of common shares	(11,326		)	—			—			—			—			(11,326		)
Issuance of intercompany notes	(4,000		)	—			—			4,000			—			—
Intercompany distributions	—			(283,596		)	(84,000		)	35,691			331,905			—
Other	—			—			—			(713		)	—			(713		)
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES	(392,241		)	(283,596		)	154,475			32,316			331,905			(157,141		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			—			(64		)	—			(64		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(122,707		)	(3,662		)	(8,639		)	54,056			—			(80,952		)
Balance, beginning of year	252,888			3,966			19,358			4,384			—			280,596
Balance, end of year	$	130,181		$	304		$	10,719		$	58,440		$	—		$	199,644

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2012
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	90,456		$	138,149		$	41,000		$	423,784		$	(247,475	)	$	445,914
INVESTING ACTIVITIES
Capital expenditures	—			(285		)	—			(157,277		)	—			(157,562		)
Purchase of timberlands	—			—			—			(106,536		)	—			(106,536		)
Jesup mill cellulose specialties expansion	—			—			—			(201,359		)	—			(201,359		)
Change in restricted cash	—			—			—			(10,559		)	—			(10,559		)
Investment in Subsidiaries	—			—			(142,508		)	—			142,508			—
Other	—			(69		)	—			3,184			—			3,115
CASH USED FOR INVESTING ACTIVITIES	—			(354		)	(142,508		)	(472,547		)	142,508			(472,901		)
FINANCING ACTIVITIES
Issuance of debt	475,000			—			740,000			15,000			—			1,230,000
Repayment of debt	(120,000		)	(30,000		)	(638,110		)	(25,500		)	—			(813,610		)
Dividends paid	(206,583		)	—			—			—			—			(206,583		)
Proceeds from the issuance of common shares	25,495			—			—			—			—			25,495
Excess tax benefits on stock-based compensation	—			—			—			7,635			—			7,635
Debt issuance costs	(3,697		)	(1,219		)	—			(1,219		)	—			(6,135		)
Repurchase of common shares	(7,783		)	—			—			—			—			(7,783		)
Issuance of intercompany notes	—			(14,000		)	—			14,000			—			—
Distributions to / from Parent	—			(97,587		)	(41,000		)	33,620			104,967			—
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	162,432			(142,806		)	60,890			43,536			104,967			229,019
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			—			(39		)	—			(39		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	252,888			(5,011		)	(40,618		)	(5,266		)	—			201,993
Balance, beginning of year	—			8,977			59,976			9,650			—			78,603
Balance, end of year	$	252,888		$	3,966		$	19,358		$	4,384		$	—		$	280,596

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2011
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	283,409		$	332,577		$	15,000		$	402,994		$	(601,710	)	$	432,270
INVESTING ACTIVITIES
Capital expenditures	—			(270		)	—			(144,252		)	—			(144,522		)
Purchase of timberlands	—			—			—			(320,899		)	—			(320,899		)
Jesup mill cellulose specialties expansion	—			—			—			(42,894		)	—			(42,894		)
Change in restricted cash	—			—			—			8,323			—			8,323
Investment in Subsidiaries	(19,259		)	(99,988		)	(35,828		)	—			155,075			—
Other	—			69			—			11,309			—			11,378
CASH USED FOR INVESTING ACTIVITIES	(19,259		)	(100,189		)	(35,828		)	(488,413		)	155,075			(488,614		)
FINANCING ACTIVITIES
Issuance of debt	120,000			105,000			—			235,000			—			460,000
Repayment of debt	—			(75,000		)	(168,057		)	(256,000		)	—			(499,057		)
Dividends paid	(185,272		)	—			—			—			—			(185,272		)
Proceeds from the issuance of common shares	13,451			—			—			—			—			13,451
Excess tax benefits on stock-based compensation	—			—			—			5,681			—			5,681
Debt issuance costs	—			(675		)	(676		)	(676		)	—			(2,027		)
Repurchase of common shares	(7,909		)	—			—			—			—			(7,909		)
Intercompany distributions	(204,420		)	—			(18,961		)	223,381			—			—
Distributions to / from Parent	—			(282,495		)	(14,760		)	(149,380		)	446,635			—
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES	(264,150		)	(253,170		)	(202,454		)	58,006			446,635			(215,133		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			—			617			—			617
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	—			(20,782		)	(223,282		)	(26,796		)	—			(270,860		)
Balance, beginning of year	—			29,759			283,258			36,446			—			349,463
Balance, end of year	$	—		$	8,977		$	59,976		$	9,650		$	—		$	78,603

In March 2012, Rayonier Inc. issued $325 million of 3.75% Senior Notes due 2022. At issuance, the notes were fully and unconditionally guaranteed by the following subsidiaries of Rayonier Inc.: ROC, Rayonier Louisiana Timberlands LLC, Rayonier TRS Holdings Inc. and substantially all domestic subsidiaries of TRS Holdings Inc. In October 2012, the guarantee on the notes was amended whereby all guarantors were released except ROC and Rayonier TRS Holdings Inc. As such, for comparability purposes, all prior year information has been updated to reflect ROC and Rayonier TRS Holdings Inc. as the note guarantors. In connection with these 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.

The subsidiary guarantors, ROC and Rayonier TRS Holdings, Inc., are wholly-owned by the Parent Company, Rayonier, Inc. The notes are fully and unconditionally guaranteed on a joint and several basis by the guarantor subsidiaries.

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Year Ended December 31, 2013
	Rayonier Inc.(Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	1,707,822		$	—		$	1,707,822
Costs and Expenses
Cost of sales	—			—			1,246,312			—			1,246,312
Selling and general expenses	—			9,821			55,022			—			64,843
Other operating (income) expense, net	(1,701		)	4,730			(12,516		)	—			(9,487		)
	(1,701		)	14,551			1,288,818			—			1,301,668
Equity in income of New Zealand joint venture	—			—			562			—			562
OPERATING (LOSS) INCOME BEFORE GAIN RELATED TO THE CONSOLIDATION OF THE NEW ZEALAND JOINT VENTURE	1,701			(14,551		)	419,566			—			406,716
Gain related to the consolidation of the New Zealand joint venture	—			—			16,098			—			16,098
OPERATING INCOME (LOSS)	1,701			(14,551		)	435,664			—			422,814
Interest expense	(13,088		)	(28,430		)	(2,242		)	—			(43,760		)
Interest and miscellaneous income (expense), net	9,828			(4,297		)	(3,159		)	—			2,372
Equity in income from subsidiaries	373,455			407,722			—			(781,177		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	371,896			360,444			430,263			(781,177		)	381,426
Income tax benefit (expense)	—			13,011			(62,672		)	—			(49,661		)
INCOME FROM CONTINUING OPERATIONS	371,896			373,455			367,591			(781,177		)	331,765
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income tax	—			—			42,033			—			42,033
NET INCOME	371,896			373,455			409,624			(781,177		)	373,798
Less: Net income attributable to noncontrolling interest	—			—			1,902			—			1,902
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	371,896			373,455			407,722			(781,177		)	371,896
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	(1,915		)	(1,915		)	(5,710		)	3,830			(5,710		)
New Zealand joint venture cash flows	3,286			3,286			3,629			(6,572		)	3,629
Amortization of pension and postretirement plans	61,869			61,869			20,589			(82,458		)	61,869
Total other comprehensive income	63,240			63,240			18,508			(85,200		)	59,788
COMPREHENSIVE INCOME	435,136			436,695			428,132			(866,377		)	433,586
Less: Comprehensive income attributable to noncontrolling interest	—			—			(1,550		)	—			(1,550		)
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$	435,136		$	436,695		$	429,682		$	(866,377	)	$	435,136

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Year Ended December 31, 2012
	Rayonier Inc.(Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	1,483,490		$	—		$	1,483,490
Costs and Expenses
Cost of sales	—			—			1,030,692			—			1,030,692
Selling and general expenses	—			10,575			56,382			—			66,957
Other operating expense (income), net	110			962			(15,241		)	—			(14,169		)
	110			11,537			1,071,833			—			1,083,480
Equity in income of New Zealand joint venture	—			—			550			—			550
OPERATING (LOSS) INCOME	(110		)	(11,537		)	412,207			—			400,560
Interest expense	(10,717		)	(38,912		)	4,648			—			(44,981		)
Interest and miscellaneous income (expense), net	6,638			2,185			(8,217		)	—			606
Equity in income from subsidiaries	282,874			315,715			—			(598,589		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	278,685			267,451			408,638			(598,589		)	356,185
Income tax benefit (expense)	—			15,423			(100,166		)	—			(84,743		)
INCOME FROM CONTINUING OPERATIONS	278,685			282,874			308,472			(598,589		)	271,442
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income tax	—			—			7,243			—			7,243
NET INCOME	278,685			282,874			315,715			(598,589		)	278,685
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	4,352			4,352			4,353			(8,705		)	4,352
New Zealand joint venture cash flows	213			213			213			(426		)	213
Amortization of pension and postretirement plans	(496		)	(496		)	(450		)	946			(496		)
Total other comprehensive income	4,069			4,069			4,116			(8,185		)	4,069
COMPREHENSIVE INCOME	$	282,754		$	286,943		$	319,831		$	(606,774	)	$	282,754

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Year Ended December 31, 2011
	Rayonier Inc.(Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	1,420,960		$	—		$	1,420,960
Costs and Expenses
Cost of sales	—			—			1,006,297			—			1,006,297
Selling and general expenses	—			10,710			54,541			—			65,251
Other operating expense (income), net	—			117			(3,911		)	—			(3,794		)
	—			10,827			1,056,927			—			1,067,754
Equity in income of New Zealand joint venture	—			—			4,088			—			4,088
OPERATING (LOSS) INCOME	—			(10,827		)	368,121			—			357,294
Interest expense	621			(50,688		)	(708		)	—			(50,775		)
Interest and miscellaneous income, net	—			772			71			—			843
Equity in income from subsidiaries	275,384			316,222			—			(591,606		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	276,005			255,479			367,484			(591,606		)	307,362
Income tax benefit (expense)	—			19,905			(50,593		)	—			(30,688		)
INCOME FROM CONTINUING OPERATIONS	276,005			275,384			316,891			(591,606		)	276,674
DISCONTINUED OPERATIONS, NET
Loss from discontinued operations, net of income tax	—			—			(669		)	—			(669		)
NET INCOME	276,005			275,384			316,222			(591,606		)	276,005
OTHER COMPREHENSIVE LOSS
Foreign currency translation adjustment	3,546			3,546			3,545			(7,091		)	3,546
New Zealand joint venture cash flows	(2,373		)	(2,373		)	(2,373		)	4,746			(2,373		)
Amortization of pension and postretirement plans	(46,263		)	(46,263		)	(35,575		)	81,838			(46,263		)
Total other comprehensive loss	(45,090		)	(45,090		)	(34,403		)	79,493			(45,090		)
COMPREHENSIVE INCOME	$	230,915		$	230,294		$	281,819		$	(512,113	)	$	230,915

	CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2013
	Rayonier Inc.(Parent Issuer)		Subsidiary Guarantors		Non- guarantors		Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	130,181	$	11,023	$	58,440	$	—		$	199,644
Accounts receivable, less allowance for doubtful accounts	—		2,310		92,646		—			94,956
Inventory	—		—		138,818		—			138,818
Current deferred tax asset	—		681		38,419		—			39,100
Prepaid and other current assets	—		2,369		44,207		—			46,576
Total current assets	130,181		16,383		372,530		—			519,094
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		2,049,378		—			2,049,378
NET PROPERTY, PLANT AND EQUIPMENT	—		2,612		858,209		—			860,821
INVESTMENT IN SUBSIDIARIES	1,627,315		2,764,211		—		(4,391,526		)	—
INTERCOMPANY NOTES RECEIVABLE	228,032		20,659		—		(248,691		)	—
OTHER ASSETS	3,689		36,258		216,261		—			256,208
TOTAL ASSETS	$	1,989,217	$	2,840,123	$	3,496,378	$	(4,640,217	)	$	3,685,501
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	3,086	$	66,207	$	—		$	69,293
Current maturities of long-term debt	—		112,500		—		—			112,500
Accrued taxes	—		4,855		3,696		—			8,551
Uncertain tax positions	—		5,780		4,767		—			10,547
Accrued payroll and benefits	—		11,382		13,566		—			24,948
Accrued interest	3,047		3,280		22,816		(19,612		)	9,531
Accrued customer incentives	—		—		9,580		—			9,580
Other current liabilities	—		2,985		21,342		—			24,327
Current liabilities for dispositions and discontinued operations	—		—		6,835		—			6,835
Total current liabilities	3,047		143,868		148,809		(19,612		)	276,112
LONG-TERM DEBT	325,000		847,749		288,975		—			1,461,724
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		69,543		—			69,543
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		91,471		4,183		—			95,654
OTHER NON-CURRENT LIABILITIES	—		11,493		15,732		—			27,225
INTERCOMPANY PAYABLE	—		118,227		125,921		(244,148		)	—
TOTAL RAYONIER SHAREHOLDERS’ EQUITY	1,661,170		1,627,315		2,749,142		(4,376,457		)	1,661,170
Noncontrolling interest	—		—		94,073		—			94,073
TOTAL SHAREHOLDER'S EQUITY	1,661,170		1,627,315		2,843,215		(4,376,457		)	1,755,243
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,989,217	$	2,840,123	$	3,496,378	$	(4,640,217	)	$	3,685,501

	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
Current deferred tax asset	—		—		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
Uncertain tax positions	—		—		800		—			800
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		14,915		—			17,840
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 Year Ended December 31, 2013
	Rayonier Inc.(Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	407,712		$	417,074		$	491,762		$	(771,375	)	$	545,173
INVESTING ACTIVITIES
Capital expenditures	—			(663		)	(158,235		)	—			(158,898		)
Purchase of additional interest in New Zealand joint venture	—			—			(139,879		)	—			(139,879		)
Purchase of timberlands	—			—			(20,401		)	—			(20,401		)
Jesup mill cellulose specialties expansion	—			—			(141,143		)	—			(141,143		)
Proceeds from disposition of Wood Products business	—			—			62,720			—			62,720
Change in restricted cash	—			—			(58,385		)	—			(58,385		)
Investment in Subsidiaries	(138,178		)	(385,292		)	—			523,470			—
Other	—			1,701			(14,635		)	—			(12,934		)
CASH USED FOR INVESTING ACTIVITIES	(138,178		)	(384,254		)	(469,958		)	523,470			(468,920		)
FINANCING ACTIVITIES
Issuance of debt	175,000			390,000			57,885			—			622,885
Repayment of debt	(325,000		)	(151,525		)	(72,960		)	—			(549,485		)
Dividends paid	(237,016		)	—			—			—			(237,016		)
Proceeds from the issuance of common shares	10,101			—			—			—			10,101
Excess tax benefits on stock-based compensation	—			—			8,413			—			8,413
Repurchase of common shares	(11,326		)	—			—			—			(11,326		)
Issuance of intercompany notes	(4,000		)	—			4,000			—			—
Distributions to / from Parent	—			(283,596		)	35,691			247,905			—
Other	—			—			(713		)	—			(713		)
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES	(392,241		)	(45,121		)	32,316			247,905			(157,141		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			(64		)	—			(64		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(122,707		)	(12,301		)	54,056			—			(80,952		)
Balance, beginning of year	252,888			23,324			4,384			—			280,596
Balance, end of year	$	130,181		$	11,023		$	58,440		$	—		$	199,644

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2012
	Rayonier Inc.(Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	90,456		$	138,149		$	423,784		$	(206,475	)	$	445,914
INVESTING ACTIVITIES
Capital expenditures	—			(285		)	(157,277		)	—			(157,562		)
Purchase of timberlands	—			—			(106,536		)	—			(106,536		)
Jesup mill cellulose specialties expansion	—			—			(201,359		)	—			(201,359		)
Change in restricted cash	—			—			(10,559		)	—			(10,559		)
Investment in Subsidiaries	—			(142,508		)	—			142,508			—
Other	—			(69		)	3,184			—			3,115
CASH USED FOR INVESTING ACTIVITIES	—			(142,862		)	(472,547		)	142,508			(472,901		)
FINANCING ACTIVITIES
Issuance of debt	475,000			740,000			15,000			—			1,230,000
Repayment of debt	(120,000		)	(668,110		)	(25,500		)	—			(813,610		)
Dividends paid	(206,583		)	—			—			—			(206,583		)
Proceeds from the issuance of common shares	25,495			—			—			—			25,495
Excess tax benefits on stock-based compensation	—			—			7,635			—			7,635
Debt issuance costs	(3,697		)	(1,219		)	(1,219		)	—			(6,135		)
Repurchase of common shares	(7,783		)	—			—			—			(7,783		)
Issuance of intercompany notes	—			(14,000		)	14,000			—			—
Intercompany distributions	—			(97,587		)	33,620			63,967			—
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	162,432			(40,916		)	43,536			63,967			229,019
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			(39		)	—			(39		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	252,888			(45,629		)	(5,266		)	—			201,993
Balance, beginning of year	—			68,953			9,650			—			78,603
Balance, end of year	$	252,888		$	23,324		$	4,384		$	—		$	280,596

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Year Ended December 31, 2011
	Rayonier Inc.(Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	283,409		$	332,817		$	402,994		$	(586,950	)	$	432,270
INVESTING ACTIVITIES
Capital expenditures	—			(270		)	(144,252		)	—			(144,522		)
Purchase of timberlands	—			—			(320,899		)	—			(320,899		)
Jesup mill cellulose specialties expansion	—			—			(42,894		)	—			(42,894		)
Change in restricted cash	—			—			8,323			—			8,323
Investment in Subsidiaries	(19,259		)	(135,816		)	—			155,075			—
Other	—			69			11,309			—			11,378
CASH USED FOR INVESTING ACTIVITIES	(19,259		)	(136,017		)	(488,413		)	155,075			(488,614		)
FINANCING ACTIVITIES
Issuance of debt	120,000			105,000			235,000			—			460,000
Repayment of debt	—			(243,057		)	(256,000		)	—			(499,057		)
Dividends paid	(185,272		)	—			—			—			(185,272		)
Proceeds from the issuance of common shares	13,451			—			—			—			13,451
Excess tax benefits on stock-based compensation	—			—			5,681			—			5,681
Debt issuance costs	—			(1,351		)	(676		)	—			(2,027		)
Repurchase of common shares	(7,909		)	—			—			—			(7,909		)
Issuance of intercompany notes	(204,420		)	(18,961		)	223,381			—			—
Intercompany distributions	—			(282,495		)	(149,380		)	431,875			—
CASH USED FOR FINANCING ACTIVITIES	(264,150		)	(440,864		)	58,006			431,875			(215,133		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			617			—			617
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	—			(244,064		)	(26,796		)	—			(270,860		)
Balance, beginning of year	—			313,017			36,446			—			349,463
Balance, end of year	$	—		$	68,953		$	9,650		$	—		$	78,603