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EARNINGS PER COMMON SHARE (Tables)
 3 Months Ended
Mar. 31, 2014
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The following table provides details of the calculations of basic and diluted earnings per common share:
 
Three Months Ended March 31,
 
2014
 
2013
Income from continuing operations
$
43,292

 
$
103,258

Less: Loss from continuing operations attributable to noncontrolling interest
(83
)
 
—

Income from continuing operations attributable to Rayonier Inc.
$
43,375

 
$
103,258

 
 
 
 
Income from discontinued operations attributable to Rayonier Inc.
$
—

 
$
44,477

 
 
 
 
Net income attributable to Rayonier Inc.
$
43,375

 
$
147,735

 
 
 
 
Shares used for determining basic earnings per common share
126,344,987

 
124,479,865

Dilutive effect of:
 
 
 
Stock options
286,535

 
533,031

Performance and restricted shares
83,850

 
448,440

Assumed conversion of Senior Exchangeable Notes (a)
1,063,538

 
2,115,959

Assumed conversion of warrants (a) (b)
645,583

 
2,859,593

Shares used for determining diluted earnings per common share
128,424,493

 
130,436,888

Basic earnings per common share attributable to Rayonier Inc.:
 
 
 
Continuing operations
$
0.34

 
$
0.83

Discontinued operations
—

 
0.36

Net income
$
0.34

 
$
1.19

Diluted earnings per common share attributable to Rayonier Inc.:
 
 
 
Continuing operations
$
0.34

 
$
0.79

Discontinued operations
—

 
0.34

Net income
$
0.34

 
$
1.13

(a) Rayonier will not issue additional shares upon future exchange or 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 2015 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 full dilutive effect of the 2015 Notes was included for the three months ended March 31, 2013 and March 31, 2014.
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. The warrants sold in conjunction with the 2012 Notes began maturing on January 15, 2013 and matured ratably through March 27, 2013. As a result, 2,037,303 shares were issued through the end of the first quarter of 2013. The dilutive impact of these warrants was calculated based on the length of time they were outstanding before settlement. Rayonier will distribute additional shares upon maturity of the warrants associated with the 2015 Notes if the stock price exceeds $38.97 per share. For further information, see Note 13 — Debt in the 2013 Annual Report on Form 10-K and Note 15 — Debt of this Form 10-Q.
(b) The shares used for the assumed conversion of the warrants decreased in the first quarter of 2014 as there was no dilutive impact from the warrants on the 2012 Notes.
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share
 
Three Months Ended March 31,
 
2014
 
2013
Anti-dilutive shares excluded from the computations of diluted earnings per share:
 
 
 
Stock options, performance and restricted shares
731,046

 
220,701

Assumed conversion of exchangeable note hedges (a)
1,063,538

 
2,115,959

Total
1,794,584

 
2,336,660

(a) Rayonier will not issue additional shares upon future exchange or 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 2015 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 full dilutive effect of the 2015 Notes was included for the three months ended March 31, 2013 and March 31, 2014.
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. The warrants sold in conjunction with the 2012 Notes began maturing on January 15, 2013 and matured ratably through March 27, 2013. As a result, 2,037,303 shares were issued through the end of the first quarter of 2013. The dilutive impact of these warrants was calculated based on the length of time they were outstanding before settlement. Rayonier will distribute additional shares upon maturity of the warrants associated with the 2015 Notes if the stock price exceeds $38.97 per share. For further information, see Note 13 — Debt in the 2013 Annual Report on Form 10-K and Note 15 — Debt of this Form 10-Q.
(b) The shares used for the assumed conversion of the warrants decreased in the first quarter of 2014 as there was no dilutive impact from the warrants on the 2012 Notes.