Segment and Geographical Information

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment and Geographical Information

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 3 — Sale of Wood Products Business for additional information.

Forest Resources sales include all activities that relate to the harvesting of timber. Real Estate sales include all property sales, including those designated as 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 included two major product lines, cellulose specialties and absorbent materials. Beginning in the third quarter of 2013 and in conjunction with the completion of the CSE project, the Company’s Jesup mill began producing commodity grade products (primarily viscose) during the multi-year transition to higher cellulose specialties volume. Commodity viscose is a dissolving wood pulp used primarily in the manufacture of textiles. Commodity Viscose/Other includes commodity viscose and off-grade.

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 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 as presented in the Consolidated Statements of Income and Comprehensive Income is equal to segment income. 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.

Two customers in the Performance Fibers segment represented approximately 13 percent and 11 percent of the Company’s consolidated sales in 2013, respectively. Four customers in the Performance Fibers segment represented 15 percent, 12 percent, 10 percent, and 10 percent of the Company’s consolidated sales in 2012, respectively. Three customers in the Performance Fibers segment represented 15 percent, 11 percent and 11 percent of the Company’s consolidated sales in 2011, respectively.

Segment information for each of the three years ended December 31, 2013 follows (in millions of dollars):

	Sales
	2013			2012			2011
Forest Resources (a)	$	382		$	230		$	215
Real Estate (b)	149			57			71
Performance Fibers	1,042			1,093			1,020
Other Operations	138			105			122
Intersegment Eliminations	(3		)	(2		)	(7		)
Total	$	1,708		$	1,483		$	1,421

(a) 2013 included $146 million in sales from the consolidation of the New Zealand JV. See Note 4 — Joint Venture Investment.

(b) 2013 included a fourth quarter sale of approximately 128,000 acres of New York timberland holdings for $57 million.

	Operating Income/(Loss)
	2013			2012			2011
Forest Resources	$	81		$	46		$	47
Real Estate	56			32			47
Performance Fibers	311			359			298
Other Operations	2			—			1
Corporate and other (a)	(27		)	(36		)	(36		)
Total	$	423		$	401		$	357

(a) 2013 included a $16 million gain related to the consolidation of the New Zealand JV. See Note 4 — Joint Venture Investment. 2011 included a $7 million increase in a disposition reserve.

	Gross Capital Expenditures
	2013		2012		2011
Forest Resources (a)	$	83	$	156	$	468
Performance Fibers (b)	242		309		140
Wood Products (c)	—		2		3
Corporate and other	—		1		2
Total assets acquired	$	325	$	468	$	613
Less: Assumption of loan for timberlands acquisition	—		—		(105		)
Total capital expenditures	$	325	$	468	$	508

(a) Includes strategic timberland acquisitions of $107 million and $426 million (including assumption of a $105 million loan) in 2012 and 2011, respectively.

(b) Includes $141 million, $201 million, and $43 million of strategic capital expenditures related to the Jesup mill CSE in 2013, 2012 and 2011, respectively.

(c) The Company sold its Wood Products segment during the first quarter of 2013. See Note 3— Sale of Wood Products Business for additional information.

	Depreciation, Depletion and Amortization
	2013		2012		2011
Forest Resources (a)	$	99	$	75	$	63
Real Estate	17		8		12
Performance Fibers	75		61		56
Corporate and other	—		2		2
Total	$	191	$	146	$	133

(a) 2013 included an increase of approximately $27 million in depletion expense related to the consolidation of the New Zealand JV. See Note 4 — Joint Venture Investment.

	Total Assets
	2013		2012
Forest Resources (a)	$	2,163	$	1,690
Real Estate	149		113
Performance Fibers	1,079		902
Wood Products (b)	—		18
Other Operations	37		23
Corporate and other	258		377
Total	$	3,686	$	3,123

(a) 2013 included an increase in total assets of approximately $577 million related to the consolidation of the New Zealand JV. See Note 4 — Joint Venture Investment.

(b) The Company sold its Wood Products segment during the first quarter of 2013. See Note 3— Sale of Wood Products Business for additional information.

	Sales by Product Line
	2013		2012		2011
Forest Resources (a)	$	382	$	230	$	215
Real Estate
Development	4		2		4
Rural	37		39		33
Non-Strategic Timberlands (b)	108		16		34
Total Real Estate	149		57		71
Performance Fibers
Cellulose specialties	930		935		824
Viscose/other (c)	39		—		—
Absorbent materials	73		158		196
Total Performance Fibers	1,042		1,093		1,020
Other	135		103		115
Total Sales	$	1,708	$	1,483	$	1,421

(a) 2013 included $146 million in sales from the consolidation of the New Zealand JV. See Note 4 — Joint Venture Investment.

(b) 2013 included a fourth quarter sale of approximately 128,000 acres of New York timberland holdings for $57 million.

(c) Beginning in the third quarter of 2013, viscose and commodity grades are being produced as the Company begins its multi-year transition to producing only cellulose specialties.

	Geographical Operating Information
	Sales						Operating Income						Identifiable Assets
	2013		2012		2011		2013		2012		2011		2013		2012
United States	$	1,428	$	1,379	$	1,310	$	394	$	399	$	351	$	3,077	$	3,022
New Zealand	280		104		111		29		2		6		609		101
Total	$	1,708	$	1,483	$	1,421	$	423	$	401	$	357	$	3,686	$	3,123

	Sales by Destination
	2013		%	2012		%	2011		%
United States	$	818	48	$	690	47	$	669	47
China	351		20	281		19	277		19
Japan	150		9	170		11	159		11
New Zealand	157		9	18		1	22		2
Europe	79		5	182		12	173		12
Other Asia	82		5	68		5	55		4
Latin America	60		3	53		4	36		3
Canada	1		—	4		—	9		1
All other	10		1	17		1	21		1
Total Sales	$	1,708	100	$	1,483	100	$	1,421	100

The majority of sales to foreign countries are denominated in U.S. dollars.