10-Q/A

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q/A

(AMENDMENT NO. 1)

(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, 2014

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

225 WATER STREET, SUITE 1400

JACKSONVILLE, FL 32202

(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 November 3, 2014, there were outstanding 126,726,146 Common Shares of the registrant.

EXPLANATORY NOTE

This Amendment No. 1 (this “Amendment”) to the Quarterly Report on Form 10-Q of Rayonier Inc. (the “Company”) for the quarterly period ended March 31, 2014 is being filed to amend and restate in their entirety the following items of its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2014 that was filed on April 30, 2014 (the “Original Filing”): (i) Item 1 of Part I, “Financial Information,” (ii) Item 2 of Part I, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and (iii) Item 4 of Part I, “Controls and Procedures”. The Company has also updated the signature page, the certifications of its chief executive officer and chief financial officer in Exhibits 31.1, 31.2 and 32 and its unaudited consolidated financial statements formatted in Extensible Business Reporting Language (XBRL) in Exhibit 101. Concurrently with the filing of this Amendment, the Company is also filing Amendment No. 1 to its Annual Report on Form 10-K for the fiscal year ended December 31, 2013, Amendment No. 1 to its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2014 and Amendment No. 1 to its Form 8-K filed with the Securities and Exchange Commission on July 3, 2014.

On June 27, 2014, the Company spun off its Performance Fibers business to its shareholders as a newly formed publicly traded company named Rayonier Advanced Materials Inc. Following the spin-off, new management conducted a review of the Company’s operations and business strategies and identified issues related to its historical timber harvest levels, its estimate of merchantable timber inventory and the effect of such estimate on its calculation of depletion expense in each of the quarterly periods ended March 31, 2014 and June 30, 2014. At the direction of the Company’s Board of Directors, management commenced an internal review into these matters with the assistance of independent counsel, forensic accountants and financial advisers. As a result of the internal review, the Company concluded that it included in merchantable timber inventory for 2014, timber in specially designated parcels located in restricted, environmentally sensitive or economically inaccessible areas, which was incorrect, inconsistent with its definition of merchantable timber inventory, and a significant change from prior years. As a result, the Company concluded that it understated its depletion expense in cost of goods sold (referred to as “Cost of sales” in the Company's consolidated statements of income) by approximately $2.0 million in each of the quarterly periods ended March 31, 2014 and June 30, 2014, which resulted in a corresponding overstatement of income from continuing operations of $1.9 million and $2.0 million, respectively, in those periods. In addition, management determined that there was a material weakness in the Company’s internal controls related to merchantable timber inventory, as discussed in Part I, Item 4 of this Amendment. Accordingly, the Company has filed this Amendment and the restated interim consolidated financial statements contained herein. Further details of the errors and the impact on the unaudited financial statements set forth in the Original Filing are contained in Note 3 — Restatement of Previously Issued Consolidated Financial Statements in the Notes to the Unaudited Consolidated Financial Statements included in this Amendment.

The Company has not modified or updated disclosures presented in the Original Filing, except to reflect the effects of the restatement of the Company’s financial statements and disclose the material weaknesses in our internal control over financial reporting that has been identified since the date of the Annual Report on Form 10-K, as described above. Accordingly, this Amendment does not reflect events occurring after the Original Filing, except as noted above, and this Amendment continues to speak as of the date of the Original Filing. Therefore, this Amendment should be read in conjunction with the Company’s other filings made with the Securities and Exchange Commission subsequent to the filing of the Original Filing, including any amendments to those filings.

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, 2014 and 2013	1
	Consolidated Balance Sheets as of March 31, 2014 and December 31, 2013	2
	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2014 and 2013	3
	Notes to Consolidated Financial Statements	4
2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	32
4.	Controls and Procedures	41
	PART II - OTHER INFORMATION
6.	Exhibits	43
	Signature	44

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,
	2014			2013
	(Restated)
SALES	$	386,686		$	393,719
Costs and Expenses
Cost of sales	304,619			266,018
Selling and general expenses	15,491			16,099
Other operating expense (income), net (Note 18)	3,537			(3,503		)
	323,647			278,614
Equity in income of New Zealand joint venture	—			258
OPERATING INCOME	63,039			115,363
Interest expense	(12,969		)	(7,717		)
Interest and miscellaneous (expense) income, net	(1,015		)	57
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	49,055			107,703
Income tax expense	(7,712		)	(4,445		)
INCOME FROM CONTINUING OPERATIONS	41,343			103,258
DISCONTINUED OPERATIONS, NET (Note 2)
Income from discontinued operations, net of income tax expense of $0 and $22,273	—			44,477
NET INCOME	41,343			147,735
Less: Net loss attributable to noncontrolling interest	(83		)	—
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	41,426			147,735
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	17,803			975
New Zealand joint venture cash flow hedges, net of income tax expense of $501 and $0	1,711			554
Amortization of pension and postretirement plans, net of income tax expense of $931 and $2,204	2,097			4,969
Total other comprehensive income	21,611			6,498
COMPREHENSIVE INCOME	62,954			154,233
Less: Comprehensive income attributable to noncontrolling interest	5,425			—
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$	57,529		$	154,233
EARNINGS PER COMMON SHARE (Note 4)
BASIC EARNINGS PER SHARE ATTRIBUTABLE TO RAYONIER INC.
Continuing Operations	$	0.33		$	0.83
Discontinued Operations	—			0.36
Net Income	$	0.33		$	1.19
DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO RAYONIER INC.
Continuing Operations	$	0.32		$	0.79
Discontinued Operations	—			0.34
Net Income	$	0.32		$	1.13

See Notes to Consolidated Financial Statements.

1

RAYONIER INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands)

	March 31, 2014			December 31, 2013
	(Restated)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	156,071		$	199,644
Accounts receivable, less allowance for doubtful accounts of $777 and $673	111,697			94,956
Inventory
Finished goods	124,075			115,270
Work in progress	2,533			3,555
Raw materials	12,943			17,661
Manufacturing and maintenance supplies	2,377			2,332
Total inventory	141,928			138,818
Deferred tax assets	31,580			39,100
Prepaid and other current assets	54,577			46,576
Total current assets	495,853			519,094
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	2,067,549			2,049,378
PROPERTY, PLANT AND EQUIPMENT
Land	20,620			20,138
Buildings	188,913			180,573
Machinery and equipment	1,756,924			1,760,641
Construction in progress	32,560			19,795
Total property, plant and equipment, gross	1,999,017			1,981,147
Less — accumulated depreciation	(1,137,048		)	(1,120,326		)
Total property, plant and equipment, net	861,969			860,821
OTHER ASSETS	217,458			256,208
TOTAL ASSETS	$	3,642,829		$	3,685,501
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	86,282		$	69,293
Current maturities of long-term debt	114,319			112,500
Accrued taxes	11,374			8,551
Accrued payroll and benefits	19,261			24,948
Accrued interest	13,857			9,531
Accrued customer incentives	10,082			9,580
Other current liabilities	35,870			34,874
Current liabilities for dispositions and discontinued operations (Note 13)	6,446			6,835
Total current liabilities	297,491			276,112
LONG-TERM DEBT	1,393,887			1,461,724
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS (Note 13)	67,456			69,543
PENSION AND OTHER POSTRETIREMENT BENEFITS (Note 15)	95,098			95,654
OTHER NON-CURRENT LIABILITIES	31,254			27,225
COMMITMENTS AND CONTINGENCIES (Notes 12 and 14)
SHAREHOLDERS’ EQUITY
Common Shares, 480,000,000 shares authorized, 126,451,505 and 126,257,870 shares issued and outstanding	694,236			692,100
Retained earnings	994,624			1,015,209
Accumulated other comprehensive loss	(30,037		)	(46,139		)
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,658,823			1,661,170
Noncontrolling interest	98,820			94,073
TOTAL SHAREHOLDERS’ EQUITY	1,757,643			1,755,243
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	3,642,829		$	3,685,501

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,
	2014			2013
	(Restated)
OPERATING ACTIVITIES
Net income	$	41,343		$	147,735
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, depletion and amortization	48,728			35,992
Non-cash cost of real estate sold	978			633
Stock-based incentive compensation expense	3,103			3,280
Deferred income taxes	5,596			1,832
Tax benefit of AFMC for CBPC exchange	—			(18,761		)
Amortization of losses from pension and postretirement plans	3,028			6,279
Gain on sale of discontinued operations, net	—			(42,670		)
Gain on foreign currency forward contracts	—			(1,881		)
Other	(287		)	(4,656		)
Changes in operating assets and liabilities:
Receivables	(15,950		)	(8,778		)
Inventories	(950		)	11,197
Accounts payable	13,929			15,386
Income tax receivable/payable	1,319			15,915
All other operating activities	935			99
Payment to exchange AFMC for CBPC	—			(70,311		)
Expenditures for dispositions and discontinued operations	(2,498		)	(1,631		)
CASH PROVIDED BY OPERATING ACTIVITIES	99,274			89,660
INVESTING ACTIVITIES
Capital expenditures	(36,755		)	(32,664		)
Purchase of timberlands	(10,637		)	(1,560		)
Jesup mill cellulose specialties expansion (gross purchases of $0 and $57,693, net of purchases on account of $0 and $20,959)	—			(36,734		)
Proceeds from disposition of Wood Products business	—			83,741
Change in restricted cash	45,312			9,908
Other	1,592			1,790
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	(488		)	24,481
FINANCING ACTIVITIES
Issuance of debt	31,819			100,000
Repayment of debt	(110,000		)	(170,000		)
Dividends paid	(62,545		)	(57,744		)
Proceeds from the issuance of common shares	2,027			4,091
Excess tax (deficiencies) benefits on stock-based compensation	(1,240		)	6,191
Repurchase of common shares	(1,754		)	(11,241		)
Other	(679		)	—
CASH USED FOR FINANCING ACTIVITIES	(142,372		)	(128,703		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	13			(17		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(43,573		)	(14,579		)
Balance, beginning of year	199,644			280,596
Balance, end of period	$	156,071		$	266,017
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period:
Interest	$	8,990		$	3,562
Income taxes	$	7,134		$	70,403
Non-cash investing activity:
Capital assets purchased on account	$	17,891		$	49,094

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 fiscal year ended December 31, 2013, as amended by Amendment No. 1 to the Form 10-K on Form 10-K/A (the “Amended Form 10-K”), as filed with the SEC.

Reclassifications

Certain 2013 amounts have been reclassified to agree with the current year presentation.

New Accounting Standards

In March 2013, the FASB issued Accounting Standards Update (“ASU”) No. 2013-05, Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. This standard requires a parent entity to release a related foreign entity’s cumulative translation adjustment into net income only if its sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The cumulative translation adjustment should be released into net income if the transaction results in the loss of a controlling financial interest in a foreign entity or results in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date. ASU No. 2013-05 became effective first quarter 2014. The adoption of this standard did not have any impact on the consolidated financial statements.

In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The standard requires an unrecognized tax benefit to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss (“NOL”) or similar carryforward or a tax credit carryforward. If an NOL or tax credit carryforward is not available at the reporting date or tax law of the applicable jurisdiction does not require the entity to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability. ASU 2013-11 became effective first quarter of 2014. The Company has applied the standard to its income tax balances and it did not have a material impact on the Company’s financial position. See Note 5 — Income Taxes for further information.

Subsequent Events

The Company evaluated events and transactions that occurred after the balance sheet date but before financial statements were issued, and no subsequent events were identified that warranted disclosure.

Separation of Performance Fibers Business

In January 2014, the Company announced its intention to separate the Performance Fibers business from the Forest Resources and Real Estate businesses. The separation will result in two independent, publicly-traded companies by means of a tax-free spin-off to Rayonier shareholders of a newly formed company named Rayonier Advanced Materials Inc. which will contain the Performance Fibers segment of Rayonier. The separation, which is subject to a number of conditions including final Board approval, receipt of a favorable private letter ruling from the Internal Revenue Service (“IRS”) and effectiveness of a registration statement on Form 10, is expected to be completed by mid-2014.

4

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

2. SALE OF WOOD PRODUCTS BUSINESS

On March 1, 2013, Rayonier completed the 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. 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 the three months ended March 31, 2013.

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 three months ended March 31, 2013.

The following table summarizes the operating results of the Company’s discontinued operations and the related gain for the three months ended March 31, 2013, as presented in “Income from discontinued operations, net” on the Consolidated Statements of Income and Comprehensive Income:

	Three Months Ended
	March 31, 2013
Sales	$	16,968
Income from discontinued operations, net	$	44,477

5

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

3. RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS

Subsequent to the issuance of the Original Filing, the Company identified issues related to its historical timber harvest levels, its estimate of merchantable timber inventory and the effect of such estimate on its calculation of depletion expense in the quarterly period ended March 31, 2014. The Company determined that it had understated its depletion expense in cost of goods sold (referred to as “Cost of sales” in the Company’s consolidated statements of income and comprehensive income) by approximately $2 million for the period. As a result, the financial amounts noted below have been restated from amounts previously reported.

The following tables summarize the effect of these restatements for the period:

	Consolidated Statements of Income and Comprehensive Income for the Three Months Ended March 31, 2014
	As Previously Reported			Restatement			As Restated
Operating Income	$	65,008		$	(1,969	)	$	63,039
Income Tax Expense	(7,732		)	20			(7,712		)
Income from Continuing Operations	43,292			(1,949		)	41,343
Net Income	43,292			(1,949		)	41,343
Net Income Attributable to Rayonier Inc.	43,375			(1,949		)	41,426
Basic Earnings Per Share Attributable to Rayonier Inc.
Continuing Operations	$	0.34		(0.01		)	$	0.33
Discontinued Operations	—			—			—
Net Income	$	0.34		$	(0.01	)	$	0.33
Diluted Earnings Per Share Attributable to Rayonier Inc.
Continuing Operations	$	0.34		(0.02		)	$	0.32
Discontinued Operations	—			—			—
Net Income	$	0.34		$	(0.02	)	$	0.32

	Consolidated Balance Sheet as of March 31, 2014
	As Previously Reported		Restatement			As Restated
Prepaid and Other Current Assets	$	54,557	$	20		$	54,577
Timber and Timberlands, Net of Depletion and Amortization	2,069,518		(1,969		)	2,067,549
Retained earnings	996,573		(1,949		)	994,624

6

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

4. 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,
	2014			2013
	(Restated)
Income from continuing operations	$	41,343		$	103,258
Less: Loss from continuing operations attributable to noncontrolling interest	(83		)	—
Income from continuing operations attributable to Rayonier Inc.	$	41,426		$	103,258
Income from discontinued operations attributable to Rayonier Inc.	$	—		$	44,477
Net income attributable to Rayonier Inc.	$	41,426		$	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	$	0.33		$	0.83
Discontinued operations	—			0.36
Net income	$	0.33		$	1.19
Diluted earnings per common share attributable to Rayonier Inc.:
Continuing operations	$	0.32		$	0.79
Discontinued operations	—			0.34
Net income	$	0.32		$	1.13

	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.

7

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

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 — Debtin the Amended Form 10-K and Note 16 — Debtof this Form 10-Q/A.

(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.

5. 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, and foreign activities, are subject to corporate income taxes. Accordingly, the provision for corporate income taxes relates principally to current and deferred taxes on taxable REIT subsidiaries’ income and foreign operations.

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 original 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, resulting in a $19 million tax benefit.

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 the prior year period was lower than 2014 primarily due to recording the above referenced AFMC exchange. Excluding the AFMC for CBPC exchange, the effective tax rate decreased in the first quarter 2014 compared to the prior year period principally due to proportionately higher earnings from REIT operations.

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,
	2014					2013
	(Restated)			(Restated)
Income tax expense at federal statutory rate	$	17		35.0	%	$	38		35.0	%
REIT income not subject to tax	(7		)	(14.2	)	(11		)	(10.1	)
Manufacturing deduction	(1		)	(2.2	)	(2		)	(2.2	)
Other	—			(0.1	)	—			0.7
Income tax expense before discrete items	9			18.5	%	25			23.4	%
Exchange of AFMC for CBPC	—			—		(19		)	(17.5	)
Other	(1		)	(2.8	)	(2		)	(1.8	)
Income tax expense as reported	$	8		15.7	%	$	4		4.1	%

8

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

Provision for Income Taxes from Discontinued Operations

In first quarter 2013, 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, income tax expense related to discontinued operations was $22.3 million ($21.4 million from the gain on sale). See Note 2 — Sale of Wood Products Business for additional information.

Unrecognized Tax Benefits

During the first quarter of 2013, the Company implemented ASU 2013-11, which requires, in certain instances, an unrecognized tax benefit (or portion of an unrecognized tax benefit) to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. As a result, the Company reclassified $3.9 million from an unrecognized tax benefit liability to a reduction to current deferred tax assets at March 31, 2014.

6. 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, 2014 and December 31, 2013, the Company had $23.6 million and $68.9 million, respectively, of proceeds from real estate sales classified as restricted cash in Other Assets, which were deposited with an LKE intermediary.

7. JOINT VENTURE INVESTMENT

On April 4, 2013 (the “acquisition date”), the Company acquired an additional 39 percent ownership interest in Matariki Forestry Group, a joint venture (“New Zealand JV”) that owns or leases approximately 0.3 million acres of New Zealand timberlands. As a result of the acquisition, Rayonier is a 65 percent owner of the New Zealand JV and 100 percent of the results of its operations subsequent to April 4, 2013 have been included in the Company’s consolidated financial statements, along with 100 percent of the JV’s assets and liabilities at March 31, 2014 and December 31, 2013. The portions of the consolidated financial position and results of operations attributable to the New Zealand JV’s 35 percent noncontrolling interest are also shown separately. Rayonier New Zealand Limited (“RNZ”), a wholly-owned subsidiary of Rayonier Inc., continues to serve as the manager of the New Zealand JV forests.

Prior to the acquisition date, the Company accounted for its 26 percent interest in the New Zealand JV as an equity method investment. The additional 39 percent interest was acquired for $139.9 million and resulted in the Company obtaining a controlling financial interest in the New Zealand JV and accordingly, the purchase was accounted for as a step-acquisition. Upon consolidation, the Company recognized a $10.1 million deferred gain, which resulted from the original sale of its New Zealand operations to the joint venture in 2005 and a $6 million benefit due to the required fair market value remeasurement of the Company’s equity interest in the New Zealand JV held before the purchase of the additional interest. The acquisition-date fair value of the previous equity interest was $93.3 million.

We have applied estimates and judgments in order to determine the fair value of assets acquired and liabilities assumed at the acquisition date. In determining fair value we utilized valuation methodologies including discounted cash flow analysis. The assumptions made in performing these valuations include assumptions as to discount rates, foreign exchange rates, and commodity prices.

9

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

The Company’s operating results for the three months ended March 31, 2013 reflect 26 percent of the New Zealand JV’s income prior to the acquisition date, as reported in “Equity in income of New Zealand joint venture” in the Consolidated Statements of Income and Comprehensive Income. The amounts of revenue and earnings of the New Zealand JV included in the Company’s Consolidated Statements of Income and Comprehensive Income for the first quarter 2014 are as follows:

	Three Months Ended March 31, 2014
Sales	$	37,764
Net Loss	(734		)

The following represents the pro forma Rayonier consolidated sales and net income for the three months ended March 31, 2013 as if the additional interest in the New Zealand JV had been acquired on January 1, 2012.

	Three Months Ended March 31, 2013
Sales	$	428,245
Net Income	$	146,280

10

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

8. SHAREHOLDERS’ EQUITY

An analysis of shareholders’ equity for the three months ended March 31, 2014 and the year ended December 31, 2013 is shown below (share amounts not in thousands):

	Rayonier Inc. Shareholders Equity
	Common Shares					Retained Earnings (Restated)			Accumulated Other Comprehensive Income/(Loss)			Non-controlling Interest			Total Shareholders’ Equity (Restated)
	Shares		Amount
Balance, December 31, 2012	123,332,444		$	670,749		$	876,634		$	(109,379	)	$	—		$	1,438,004
Net income	—		—			371,896			—			1,902			373,798
Dividends ($1.86 per share)	—		—			(233,321		)	—			—			(233,321		)
Issuance of shares under incentive stock plans	1,001,426		10,101			—			—			—			10,101
Stock-based compensation	—		11,710			—			—			—			11,710
Excess tax benefit on stock-based compensation	—		8,413			—			—			—			8,413
Repurchase of common shares	(211,221	)	(11,326		)	—			—			—			(11,326		)
Equity portion of convertible debt (Note 15)	—		2,453			—			—			—			2,453
Settlement of warrants (Note 15)	2,135,221		—			—			—			—			—
Net gain from pension and postretirement plans	—		—			—			61,869			—			61,869
Acquisition of noncontrolling interest	—		—			—			—			96,336			96,336
Noncontrolling interest redemption of shares	—		—			—			—			(713		)	(713		)
Foreign currency translation adjustment	—		—			—			(1,915		)	(3,795		)	(5,710		)
Joint venture cash flow hedges	—		—			—			3,286			343			3,629
Balance, December 31, 2013	126,257,870		$	692,100		$	1,015,209		$	(46,139	)	$	94,073		$	1,755,243
Net income (loss)	—		—			41,426			—			(83		)	41,343
Dividends ($0.49 per share)	—		—			(62,011		)	—			—			(62,011		)
Issuance of shares under incentive stock plans	235,843		2,027			—			—			—			2,027
Stock-based compensation	—		3,103			—			—			—			3,103
Excess tax deficiency on stock-based compensation	—		(1,240		)	—			—			—			(1,240		)
Repurchase of common shares	(42,208	)	(1,754		)	—			—			—			(1,754		)
Amortization of pension and postretirement plans	—		—			—			2,097			—			2,097
Noncontrolling interest redemption of shares	—		—			—			—			(679		)	(679		)
Foreign currency translation adjustment	—		—			—			12,893			4,910			17,803
Joint venture cash flow hedges	—		—			—			1,112			599			1,711
Balance, March 31, 2014	126,451,505		$	694,236		$	994,624		$	(30,037	)	$	98,820		$	1,757,643

11

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

9. SEGMENT AND GEOGRAPHICAL INFORMATION

Rayonier operates in three reportable business segments: Forest Resources, Real Estate and Performance Fibers. 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 commodity grade products (primarily viscose). 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,
	2014		2013
ASSETS	(Restated)
Forest Resources	$	2,187,498	$	2,162,913
Real Estate	113,376		149,001
Performance Fibers	1,095,574		1,078,645
Other Operations	35,121		37,334
Corporate and other	211,260		257,608
Total	$	3,642,829	$	3,685,501

	Three Months Ended March 31,
SALES	2014			2013
Forest Resources (a)	$	104,678		$	57,102
Real Estate	5,530			24,297
Performance Fibers	241,768			284,188
Other Operations	37,417			28,227
Intersegment Eliminations	(2,707		)	(95		)
Total	$	386,686		$	393,719

(a) First quarter 2014 included $38 million in sales from the consolidation of the New Zealand JV. See Note 7 — Joint Venture Investment.

12

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

	Three Months Ended March 31,
	2014			2013
OPERATING INCOME	(Restated)
Forest Resources	$	25,546		$	13,255
Real Estate	725			16,842
Performance Fibers	48,980			91,670
Other Operations	184			165
Corporate and other (a)	(12,396		)	(6,569		)
Total	$	63,039		$	115,363

(a) First quarter 2014 included $3.3 million of separation costs related to the planned separation of the Performance Fibers business from the Forest Resources and Real Estate businesses.

	Three Months Ended March 31,
	2014		2013
DEPRECIATION, DEPLETION AND AMORTIZATION	(Restated)
Forest Resources (a)	26,887		$	16,444
Real Estate	910		4,177
Performance Fibers	20,649		15,153
Corporate and other	282		218
Total	$	48,728	$	35,992

(a) 2014 included an increase of approximately $7 million in depletion expenses related to the consolidation of the New Zealand JV. See Note 7 — Joint Venture Investment.

10. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

The Company is exposed to market risk related to potential fluctuations in foreign currency exchange rates, interest rates and fuel prices. The Company’s New Zealand JV uses derivative financial instruments to mitigate the financial impact of exposure to these risks.

Accounting for derivative financial instruments is governed by Accounting Standards Codification Topic 815, Derivatives and Hedging, (“ASC 815”). In accordance with ASC 815, the Company records its derivative instruments at fair value as either assets or liabilities in the Consolidated Balance Sheets. Changes in the instruments’ fair value are accounted for based on their intended use. Gains and losses on derivatives that are designated and qualify for cash flow hedge accounting are recorded as a component of accumulated other comprehensive income (“AOCI”) and reclassified into earnings when the hedged transaction materializes. The ineffective portion of any hedge as well as changes in the fair value of derivatives not designated as hedging instruments and those which are no longer effective as hedging instruments, are recognized immediately in earnings.

Foreign Currency Exchange and Option Contracts

The functional currency of the New Zealand JV is the New Zealand dollar. These operations are exposed to foreign currency risk on export sales and ocean freight payments which are predominately denominated in US dollars. The New Zealand JV typically hedges at least 70 percent of its estimated foreign currency exposure with respect to the following three months forecasted sales and purchases and 50 percent of the forward twelve months.

The fair value of foreign currency exchange contracts is determined by a mark-to-market valuation which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate. The fair value of foreign currency option contracts is based on a mark-to-market calculation using the Black Scholes option pricing model.

13

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

Interest Rate Swaps

The Company uses interest rate swaps to manage the New Zealand JV’s exposure to interest rate movements on its variable rate debt attributable to changes in the New Zealand Bank bill rate. By converting a portion of these borrowings from floating rates to fixed rates the Company has reduced the impact of interest rate changes on its expected future cash outflows. As of March 31, 2014, the Company’s interest rate contracts hedged 88 percent of the New Zealand JV’s variable rate debt and had maturity dates through January 2020.

Fuel Hedge Contracts

The Company uses fuel swap contracts to manage its New Zealand JV’s exposure to changes in New Zealand’s domestic diesel prices. The fuel swaps are quoted by domestic banks in New Zealand dollar price terms. As of March 31, 2014 all of the contracts had maturities of less than one year. The fair value of the fuel swap contracts is determined by a mark-to-market valuation which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract.

The following table demonstrates the impact of the Company’s derivatives on the Consolidated Statements of Income and Comprehensive Income for the three months ended March 31, 2014. No derivative balances were consolidated prior to the Company’s acquisition of a controlling interest in the New Zealand JV in the second quarter of 2013.

		Three Months Ended
	Income Statement Location	March 31, 2014
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	Other comprehensive income (loss)	$	1,487
Foreign currency option contracts	Other comprehensive income (loss)	725
Derivatives not designated as hedging instruments:
Foreign currency exchange contracts	Other operating expense (income)	25
Foreign currency option contracts	Other operating expense (income)	7
Interest rate swaps	Interest and miscellaneous (expense) income, net	(1,134		)
Fuel hedge contracts	Cost of sales	317

During the next 12 months, the amount of the March 31, 2014 AOCI balance, net of tax, expected to be reclassified into earnings as a result of the maturation of the Company’s derivative instruments is a gain of approximately $2.7 million.

The following table contains the notional amounts of the derivative financial instruments recorded in the Consolidated Balance Sheets:

	Notional Amount (a)
	March 31, 2014		December 31, 2013
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	$	37,064	$	32,300
Foreign currency option contracts	37,500		38,000
Derivatives not designated as hedging instruments:
Foreign currency exchange contracts	$	—	$	1,950
Foreign currency option contracts	—		4,000
Interest rate swaps	179,066		183,851
Fuel hedge contracts	25		38

(a) All notional amounts are stated in thousands of dollars except fuel contracts which are denominated in thousands of barrels.

14

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

The following table contains the fair values of the derivative financial instruments recorded in the Consolidated Balance Sheets :

	Location on Balance Sheet	Fair Value Assets (Liabilities) (a)
		March 31, 2014			December 31, 2013
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	Prepaid and other current assets	$	2,616		$	915
	Other current liabilities	(84		)	—
Foreign currency option contracts	Prepaid and other current assets	1,333			673
	Other current liabilities	(90		)	(214		)
Derivatives not designated as hedging instruments:
Foreign currency exchange contracts	Prepaid and other current assets	$	—		$	25
Foreign currency option contracts	Prepaid and other current assets	—			8
Interest rate swaps	Other non-current liabilities	(5,145		)	(4,659		)
Fuel hedge contracts	Prepaid and other current assets	—			160
	Other current liabilities	(159		)	—
Total derivative contracts:
Prepaid and other current assets		$	3,949		$	1,781
Other current liabilities		(333		)	(214		)
Other non-current liabilities		(5,145		)	(4,659		)
Total derivative liabilities		$	(5,478	)	$	(4,873	)

(a) See Note 11 — Fair Value Measurements for further information on the fair value of our derivatives including their classification within the fair value hierarchy.

Offsetting Derivatives

Derivative financial instruments are presented at their gross fair values in the Consolidated Balance Sheets. The Company’s derivative financial instruments are not subject to master netting arrangements which would allow the right of offset.

11. FAIR VALUE MEASUREMENTS

Fair Value of Financial Instruments

The Accounting Standards Codification established a three-level hierarchy that prioritizes the inputs used to measure fair value 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.

15

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

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, 2014 and December 31, 2013, using market information and what management believes to be appropriate valuation methodologies under generally accepted accounting principles:

	March 31, 2014								December 31, 2013
Asset (liability)	Carrying Amount			Fair Value					Carrying Amount			Fair Value
				Level 1		Level 2						Level 1		Level 2
Cash and cash equivalents	$	156,071		$	156,071	$	—		$	199,644		$	199,644	$	—
Restricted cash (a)	23,633			23,633		—			68,944			68,944		—
Current maturities of long-term debt	(114,319		)	—		(122,187		)	(112,500		)	—		(119,614		)
Long-term debt	(1,393,887		)	—		(1,451,984		)	(1,461,724		)	—		(1,489,810		)
Interest rate swaps (b)	(5,145		)	—		(5,145		)	(4,659		)	—		(4,659		)
Foreign currency exchange contracts (b)	2,532			—		2,532			940			—		940
Foreign currency option contracts (b)	1,243			—		1,243			467			—		467
Fuel contracts (b)	(159		)	—		(159		)	160			—		160

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

(b) See Note 10 — Derivative Financial Instruments and Hedging Activities for information regarding the Balance Sheet classification of the Company’s derivative financial instruments.

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. The variable rate debt adjusts with changes in the market rate, therefore the carrying value approximates fair value.

Interest rate swap agreements — The fair value of interest rate contracts is determined by discounting the expected future cash flows, for each instrument, at prevailing interest rates.

Foreign currency exchange contracts — The fair value of foreign currency exchange contracts is determined by a mark-to-market valuation which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate.

Foreign currency option contracts— The fair value of foreign currency option contracts is based on a mark-to-market calculation using the Black-Scholes option pricing model.

16

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

12. GUARANTEES

The Company provides financial guarantees as required by creditors, insurance programs, and various governmental agencies. As of March 31, 2014, the following financial guarantees were outstanding:

Financial Commitments	Maximum Potential Payment		Carrying Amount of Associated Liability
Standby letters of credit (a)	$	17,355	$	15,000
Guarantees (b)	2,254		43
Surety bonds (c)	5,498		1,099
Total financial commitments	$	25,107	$	16,142

(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 2014 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, 2014, 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 during 2014 and 2015 and are expected to be renewed as required.

13. LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS

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

	March 31,			December 31,
	2014			2013
Balance, beginning of period	$	76,378		$	81,695
Expenditures charged to liabilities	(2,498		)	(8,570		)
Increase to liabilities	22			3,253
Balance, end of period	73,902			76,378
Less: Current portion	(6,446		)	(6,835		)
Non-current portion	$	67,456		$	69,543

These prior dispositions and discontinued operations are exposed to the risk of reasonably possible additional losses in excess of the established liabilities. As of March 31, 2014, this amount could range up to $30 million, attributable to several of the applicable sites, and arises from uncertainty over the availability, feasibility and effectiveness of certain remediation technologies, additional or different contamination that may be discovered, development of new or more effective environmental remediation technologies, potential changes in applicable law and regulations, and the exercise of discretion in interpretation of applicable law and regulations by governmental agencies.

Management 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.

14. 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.

17

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

15. 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 recorded are shown in the following tables:

	Pension						Postretirement
	Three Months Ended March 31,						Three Months Ended March 31,
	2014			2013			2014			2013
Components of Net Periodic Benefit Cost
Service cost	$	1,624		$	2,419		$	179		$	249
Interest cost	4,683			4,834			206			240
Expected return on plan assets	(6,658		)	(7,424		)	—			—
Amortization of prior service cost	292			388			4			6
Amortization of losses	2,737			5,727			129			218
Amortization of negative plan amendment	—			—			(134		)	—
Net periodic benefit cost	$	2,678		$	5,944		$	384		$	713

In 2014, the Company has no mandatory pension contribution requirements, but may make discretionary contributions.

16. DEBT

As of December 31, 2013, the 2015 Notes became exchangeable at the option of the holders for the calendar quarter ended March 31, 2014. According to 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, 2014, 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, 2014, these notes again became exchangeable at the option of the holder for the calendar quarter ending June 30, 2014. The entire balance of the notes is classified as long-term debt at March 31, 2014 due to the ability and intent of the Company to refinance them on a long-term basis.

During the three months ended March 31, 2014, the Company made net repayments of $80 million on its unsecured revolving credit facility. The Company had $323 million of available borrowings under this facility at March 31, 2014, net of $2 million to secure its outstanding letters of credit. During the three months ended March 31, 2014, the New Zealand JV borrowed $1.8 million on its working capital facility. Additional draws totaling $18.1 million remain available on the facility.

There were no other significant changes to the Company’s outstanding debt as reported in Note 13 — Debt in the Company’s Amended Form 10-K.

18

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

17. ACCUMULATED OTHER COMPREHENSIVE LOSS

The following table summarizes the changes in AOCI by component for the three months ended March 31, 2014. All amounts are presented net of tax and exclude portions attributable to noncontrolling interest.

	Foreign currency translation gains		New Zealand joint venture cash flow hedges			Unrecognized components of employee benefit plans				Total
Balance as of December 31, 2013	$	36,914	$	(342	)	$	(82,711	)		$	(46,139	)
Other comprehensive income before reclassifications	12,893		1,604			—				14,497
Amounts reclassified from accumulated other comprehensive income	—		(492		)	2,097			(a)	1,605
Net other comprehensive income	12,893		1,112			2,097				16,102
Balance as of March 31, 2014	$	49,807	$	770		$	(80,614	)		$	(30,037	)

(a) This accumulated other comprehensive income component is included in the computation of net periodic pension cost. See Note 15 — Employee Benefit Plans for additional information.

The following table presents details of the amounts reclassified in their entirety from AOCI for the three months ended March 31, 2014:

Details about accumulated other comprehensive income components	Amount reclassified from accumulated other comprehensive income			Affected line item in the income statement
Realized gain on foreign currency exchange contracts	$	(872	)	Other operating (income) expense, net
Realized gain on foreign currency option contracts	(107		)	Other operating (income) expense, net
Noncontrolling interest	343			Comprehensive income (loss) attributable to noncontrolling interest
Income tax expense	144			Income tax expense
Net gain reclassified from accumulated other comprehensive income	$	(492	)

18. OTHER OPERATING (EXPENSE) INCOME, NET

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

	Three Months Ended March 31,
	2014			2013
Lease income, primarily from hunting leases	$	3,036		$	2,462
Other non-timber income	552			474
Foreign currency loss	(1,490		)	(184		)
Loss on sale or disposal of property, plant & equipment	(532		)	(429		)
(Loss) gain on foreign currency exchange contracts	(32		)	1,881
Separation costs related to Rayonier Advanced Materials Inc.	(3,318		)	(86		)
Miscellaneous expense, net	(1,753		)	(615		)
Total	$	(3,537	)	$	3,503

19

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

19. 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, 2014
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
	(Restated)			(Restated)						(Restated)			(Restated)			(Restated)
SALES	$	—		$	—		$	—		$	386,686		$	—		$	386,686
Costs and Expenses
Cost of sales	—			—			—			304,619			—			304,619
Selling and general expenses	—			2,150			—			13,341			—			15,491
Other operating expense, net	—			2,375			—			1,162			—			3,537
	—			4,525			—			319,122			—			323,647
OPERATING (LOSS) INCOME	—			(4,525		)	—			67,564			—			63,039
Interest expense	(3,193		)	(243		)	(6,690		)	(2,843		)	—			(12,969		)
Interest and miscellaneous income (expense), net	2,698			814			(1,047		)	(3,480		)	—			(1,015		)
Equity in income from subsidiaries	41,921			46,478			31,110			—			(119,509		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	41,426			42,524			23,373			61,241			(119,509		)	49,055
Income tax (expense) benefit	—			(603		)	2,824			(9,933		)	—			(7,712		)
NET INCOME	41,426			41,921			26,197			51,308			(119,509		)	41,343
Less: Net loss attributable to noncontrolling interest	—			—			—			(83		)	—			(83		)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	41,426			41,921			26,197			51,391			(119,509		)	41,426
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	12,894			12,893			766			17,795			(26,545		)	17,803
New Zealand joint venture cash flow hedges	1,112			1,112			1,112			1,711			(3,336		)	1,711
Amortization of pension and postretirement plans, net of income tax	2,097			2,097			1,620			1,620			(5,337		)	2,097
Total other comprehensive income	16,103			16,102			3,498			21,126			(35,218		)	21,611
COMPREHENSIVE INCOME	57,529			58,023			29,695			72,434			(154,727		)	62,954
Less: Comprehensive income attributable to noncontrolling interest	—			—			—			5,425			—			5,425
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$	57,529		$	58,023		$	29,695		$	67,009		$	(154,727	)	$	57,529

20

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, 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 tax	—			—			—			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
Amortization of 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

21

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, 2014
	Rayonier Inc. (Parent Guarantor)		ROC (Subsidiary Guarantor)		Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors		Consolidating Adjustments			Total Consolidated
	(Restated)		(Restated)					(Restated)		(Restated)			(Restated)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	93,840	$	4,494	$	(178	)	$	57,915	$	—		$	156,071
Accounts receivable, less allowance for doubtful accounts	—		10		689			110,998		—			111,697
Inventory	—		—		—			141,928		—			141,928
Deferred tax assets	—		—		646			30,934		—			31,580
Prepaid and other current assets	—		6,582		3			47,992		—			54,577
Total current assets	93,840		11,086		1,160			389,767		—			495,853
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		—			2,067,549		—			2,067,549
NET PROPERTY, PLANT AND EQUIPMENT	—		2,698		—			859,271		—			861,969
INVESTMENT IN SUBSIDIARIES	1,675,347		1,851,260		1,170,755			—		(4,697,362		)	—
INTERCOMPANY NOTES RECEIVABLE	216,844		—		20,866			—		(237,710		)	—
OTHER ASSETS	3,569		32,705		3,496			177,688		—			217,458
TOTAL ASSETS	$	1,989,600	$	1,897,749	$	1,196,277		$	3,494,275	$	(4,935,072	)	$	3,642,829
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	1,054	$	2,102		$	83,126	$	—		$	86,282
Current maturities of long-term debt	—		—		112,500			1,819		—			114,319
Accrued taxes	—		14		—			11,360		—			11,374
Accrued payroll and benefits	—		8,038		—			11,223		—			19,261
Accrued interest	5,777		669		3,723			25,112		(21,424		)	13,857
Accrued customer incentives	—		—		—			10,082		—			10,082
Other current liabilities	—		9,058		—			26,812		—			35,870
Current liabilities for dispositions and discontinued operations	—		—		—			6,446		—			6,446
Total current liabilities	5,777		18,833		118,325			175,980		(21,424		)	297,491
LONG-TERM DEBT	325,000		—		768,228			300,659		—			1,393,887
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		—			67,456		—			67,456
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		91,807		—			3,291		—			95,098
OTHER NON-CURRENT LIABILITIES	—		13,763		—			17,491		—			31,254
INTERCOMPANY PAYABLE	—		97,999		—			151,938		(249,937		)	—
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,658,823		1,675,347		309,724			2,678,640		(4,663,711		)	1,658,823
Noncontrolling interest	—		—		—			98,820		—			98,820
TOTAL SHAREHOLDERS’ EQUITY	1,658,823		1,675,347		309,724			2,777,460		(4,663,711		)	1,757,643
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,989,600	$	1,897,749	$	1,196,277		$	3,494,275	$	(4,935,072	)	$	3,642,829

22

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, 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
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 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
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	—		8,765		—		26,109		—			34,874
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 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

23

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, 2014
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	25,931		$	32,794		$	—		$	67,759		$	(27,210	)	$	99,274
INVESTING ACTIVITIES
Capital expenditures	—			(170		)	—			(36,585		)	—			(36,755		)
Purchase of timberlands	—			—			—			(10,637		)	—			(10,637		)
Change in restricted cash	—			—			—			45,312			—			45,312
Investment in Subsidiaries	—			—			69,103			—			(69,103		)	—
Other	—			—			—			1,592			—			1,592
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	—			(170		)	69,103			(318		)	(69,103		)	(488		)
FINANCING ACTIVITIES
Issuance of debt	—			—			30,000			1,819			—			31,819
Repayment of debt	—			—			(110,000		)	—			—			(110,000		)
Dividends paid	(62,545		)	—			—			—			—			(62,545		)
Proceeds from the issuance of common shares	2,027			—			—			—			—			2,027
Excess tax deficiencies on stock-based compensation	—			—			—			(1,240		)	—			(1,240		)
Repurchase of common shares	(1,754		)	—			—			—			—			(1,754		)
Intercompany distributions	—			(28,434		)	—			(67,879		)	96,313			—
Other	—			—			—			(679		)	—			(679		)
CASH USED FOR FINANCING ACTIVITIES	(62,272		)	(28,434		)	(80,000		)	(67,979		)	96,313			(142,372		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			—			13			—			13
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(36,341		)	4,190			(10,897		)	(525		)	—			(43,573		)
Balance, beginning of year	130,181			304			10,719			58,440			—			199,644
Balance, end of period	$	93,840		$	4,494		$	(178	)	$	57,915		$	—		$	156,071

24

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 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

25

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, 2014
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
	(Restated)			(Restated)			(Restated)			(Restated)			(Restated)
SALES	$	—		$	—		$	386,686		$	—		$	386,686
Costs and Expenses
Cost of sales	—			—			304,619			—			304,619
Selling and general expenses	—			2,150			13,341			—			15,491
Other operating expense, net	—			2,375			1,162			—			3,537
	—			4,525			319,122			—			323,647
OPERATING (LOSS) INCOME	—			(4,525		)	67,564			—			63,039
Interest expense	(3,193		)	(6,933		)	(2,843		)	—			(12,969		)
Interest and miscellaneous income (expense), net	2,698			(233		)	(3,480		)	—			(1,015		)
Equity in income from subsidiaries	41,921			51,391			—			(93,312		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	41,426			39,700			61,241			(93,312		)	49,055
Income tax benefit (expense)	—			2,221			(9,933		)	—			(7,712		)
NET INCOME	41,426			41,921			51,308			(93,312		)	41,343
Less: Net loss attributable to noncontrolling interest	—			—			(83		)	—			(83		)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	41,426			41,921			51,391			(93,312		)	41,426
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	12,894			12,892			17,795			(25,778		)	17,803
New Zealand joint venture cash flow hedges	1,112			1,112			1,711			(2,224		)	1,711
Amortization of pension and postretirement plans, net of income tax	2,097			2,097			1,620			(3,717		)	2,097
Total other comprehensive income	16,103			16,101			21,126			(31,719		)	21,611
COMPREHENSIVE INCOME	57,529			58,022			72,434			(125,031		)	62,954
Less: Comprehensive income attributable to noncontrolling interest	—			—			5,425			—			5,425
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$	57,529		$	58,022		$	67,009		$	(125,031	)	$	57,529

26

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, 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) income	(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 benefit (expense)	—			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
Amortization of 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

27

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, 2014
	Rayonier Inc. (Parent Issuer)		Subsidiary Guarantors		Non- guarantors		Consolidating Adjustments			Total Consolidated
	(Restated)		(Restated)		(Restated)		(Restated)			(Restated)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	93,840	$	4,316	$	57,915	$	—		$	156,071
Accounts receivable, less allowance for doubtful accounts	—		699		110,998		—			111,697
Inventory	—		—		141,928		—			141,928
Deferred tax asset	—		646		30,934		—			31,580
Prepaid and other current assets	—		6,585		47,992		—			54,577
Total current assets	93,840		12,246		389,767		—			495,853
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		2,067,549		—			2,067,549
NET PROPERTY, PLANT AND EQUIPMENT	—		2,698		859,271		—			861,969
INVESTMENT IN SUBSIDIARIES	1,675,347		2,712,291		—		(4,387,638		)	—
INTERCOMPANY NOTES RECEIVABLE	216,844		20,866		—		(237,710		)	—
OTHER ASSETS	3,569		36,201		177,688		—			217,458
TOTAL ASSETS	$	1,989,600	$	2,784,302	$	3,494,275	$	(4,625,348	)	$	3,642,829
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	3,156	$	83,126	$	—		$	86,282
Current maturities of long-term debt	—		112,500		1,819		—			114,319
Accrued taxes	—		14		11,360		—			11,374
Accrued payroll and benefits	—		8,038		11,223		—			19,261
Accrued interest	5,777		4,392		25,112		(21,424		)	13,857
Accrued customer incentives	—		—		10,082		—			10,082
Other current liabilities	—		9,058		26,812		—			35,870
Current liabilities for dispositions and discontinued operations	—		—		6,446		—			6,446
Total current liabilities	5,777		137,158		175,980		(21,424		)	297,491
LONG-TERM DEBT	325,000		768,228		300,659		—			1,393,887
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		67,456		—			67,456
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		91,807		3,291		—			95,098
OTHER NON-CURRENT LIABILITIES	—		13,763		17,491		—			31,254
INTERCOMPANY PAYABLE	—		97,999		151,938		(249,937		)	—
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,658,823		1,675,347		2,678,640		(4,353,987		)	1,658,823
Noncontrolling interest	—		—		98,820		—			98,820
TOTAL SHAREHOLDERS’ EQUITY	1,658,823		1,675,347		2,777,460		(4,353,987		)	1,757,643
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,989,600	$	2,784,302	$	3,494,275	$	(4,625,348	)	$	3,642,829

28

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, 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
Deferred tax assets	—		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
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	—		8,765		26,109		—			34,874
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 SHAREHOLDERS’ 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

29

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, 2014
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	25,931		$	32,794		$	67,759		$	(27,210	)	$	99,274
INVESTING ACTIVITIES
Capital expenditures	—			(170		)	(36,585		)	—			(36,755		)
Purchase of timberlands	—			—			(10,637		)	—			(10,637		)
Change in restricted cash	—			—			45,312			—			45,312
Investment in Subsidiaries	—			69,103			—			(69,103		)	—
Other	—			—			1,592			—			1,592
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	—			68,933			(318		)	(69,103		)	(488		)
FINANCING ACTIVITIES
Issuance of debt	—			30,000			1,819			—			31,819
Repayment of debt	—			(110,000		)	—			—			(110,000		)
Dividends paid	(62,545		)	—			—			—			(62,545		)
Proceeds from the issuance of common shares	2,027			—			—			—			2,027
Excess tax deficiencies on stock-based compensation	—			—			(1,240		)	—			(1,240		)
Repurchase of common shares	(1,754		)	—			—			—			(1,754		)
Intercompany distributions	—			(28,434		)	(67,879		)	96,313			—
Other	—			—			(679		)	—			(679		)
CASH USED FOR FINANCING ACTIVITIES	(62,272		)	(108,434		)	(67,979		)	96,313			(142,372		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			13			—			13
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(36,341		)	(6,707		)	(525		)	—			(43,573		)
Balance, beginning of year	130,181			11,023			58,440			—			199,644
Balance, end of period	$	93,840		$	4,316		$	57,915		$	—		$	156,071

30

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 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

31

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.

Our financial condition and results of operations as of and for the period ended March 31, 2014 have been restated. All information and disclosures contained in this Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) related to that period reflect the effects of such restatement. For a more detailed description of the restatement, see Note 3 - Restatement of Previously Issued Consolidated Financial Statements of the Notes to the accompanying unaudited Consolidated Financial Statements and MD&A included in this Quarterly Report on Form 10-Q/A.

This 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 Annual Report on Form 10-K for the fiscal year ended December 31, 2013 (the “Initial Form 10-K”), as amended by Amendment No. 1 to the Form 10-K on Form 10-K/A filed with the SEC concurrently herewith (the “Amended Form 10-K”) and information contained in our subsequent Forms 10-Q, Forms 10-Q/A, Forms 8-K, Forms 8-K/A and other reports filed with the SEC.

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 events, developments, or financial or operational performance or results, 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,” “intend,” “project,” “anticipate” and other similar language. However, the absence of these or similar words or expressions does not mean that a statement is not forward-looking. While management believes that these forward-looking statements are reasonable when made, forward-looking statements are not guarantees of future performance or events and undue reliance should not be placed on these statements. The risk factors contained in Item 1A — Risk Factors in our Amended Form 10-K and any subsequent Form 10-Q, among others, could cause actual results or events to differ materially from the Company’s historical experience and those expressed in forward-looking statements made in this document.

In addition, specifically with respect to the separation of Rayonier Advanced Materials Inc. from Rayonier, the following important factors, among others, could cause actual results to differ materially from those expressed in forward-looking statements that may have been made in this document: uncertainties as to the timing of the separation and whether it will be completed, the possibility that various closing conditions for the separation may not be satisfied or waived, the expected tax treatment of the separation, the impact of the separation on the businesses of Rayonier and Rayonier Advanced Materials Inc., the ability of both companies to meet debt service requirements, the availability and terms of financing and expectations of credit rating.

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, Forms 10-K, Forms 8-K and other reports filed with 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 our Amended Form 10-K.

32

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. We operate in three reportable business segments: Forest Resources, Real Estate and Performance Fibers.

Forest Resources sales include all activities which relate to the harvesting of timber and other value-added activities such as the leasing of properties for hunting, mineral extraction and cell towers. Real Estate sales include all property sales, including those designated as higher and better use (“HBU”) and those designated as sales of non-strategic timberlands. 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 commodity grade products (primarily viscose). Our 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 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.

33

Results of Operations

	Three Months Ended March 31,
Financial Information (in millions)	2014			2013
	(Restated)
Sales
Forest Resources
Atlantic	$	22		$	17
Gulf States	12			12
Northern	33			25
New Zealand	38			3
Total Forest Resources	105			57
Real Estate
Development	—			1
Rural	5			3
Non-Strategic Timberlands	1			20
Total Real Estate	6			24
Performance Fibers
Cellulose specialties	206			247
Viscose/other	26			—
Absorbent materials	10			37
Total Performance Fibers	242			284
Other Operations	34			29
Total Sales	$	387		$	394
Operating Income (Loss)
Forest Resources	$	26		$	13
Real Estate	1			17
Performance Fibers	49			92
Other Operations	—			—
Corporate and other	(13		)	(7		)
Operating Income	63			115
Interest Expense, Interest Income and Other	(14		)	(8		)
Income Tax Expense	(8		)	(4		)
Income from Continuing Operations	$	41		$	103
Discontinued Operations, Net	—			45
Net Income	$	41		$	148
Less: Net income attributable to noncontrolling interest	—			—
Net Income Attributable to Rayonier Inc.	$	41		$	148
Diluted Earnings Per Share Attributable to Rayonier Inc.
Continuing Operations	$	0.32		$	0.79
Discontinued Operations	—			0.34
Net Income	$	0.32		$	1.13

34

FOREST RESOURCES

Sales (in millions)	2013		Changes Attributable to:				2014
Three Months Ended March 31,			Price		Volume/ Mix/Other
Atlantic	$	17	$	4	$	1	$	22
Gulf States	12		—		—		12
Northern	25		3		5		33
New Zealand (a)	3		—		35		38
Total Sales	$	57	$	7	$	41	$	105

(a) First quarter 2014 included $38 million of sales from the consolidation of the New Zealand joint venture (“New Zealand JV”), whereas first quarter 2013 was accounted for on the equity method.

Operating Income (in millions)	2013		Changes Attributable to:							2014
Three Months Ended March 31,			Price		Volume/ Mix		Cost/Other
							(Restated)			(Restated)
Atlantic	$	5	$	4	$	—	$	(1	)	$	8
Gulf States	2		—		—		1			3
Northern	5		3		6		(2		)	12
New Zealand (a)	1		—		—		2			3
Total Operating Income	$	13	$	7	$	6	$	—		$	26

(a) First quarter 2014 included $2 million of operating income from the consolidation of the New Zealand JV.

The Atlantic region’s sales and operating income increased in 2014 as average prices rose 29 percent over the prior year period. Stronger pricing for both stumpage sales and delivered logs resulted from improved demand and reduced supply due to the impact of weather conditions on harvesting.

Sales in the Gulf region were consistent with first quarter 2013 while operating income improved over the prior year due to a four percent increase in stumpage prices offset by sales mix, higher non-timber income and lower logging costs.

Northern region sales and operating income increased significantly in the first quarter 2014, driven by higher stumpage volumes and a 14 percent price increase for delivered wood. Improved volumes and pricing were attributable to higher China demand.

In April 2013, we acquired an additional 39 percent ownership interest in our New Zealand JV. As a 65 percent owner, we began consolidating 100 percent of the New Zealand JV’s results of operations in the second quarter of 2013. The first quarter 2014 higher sales and operating results for New Zealand JV reflect this increased ownership.

REAL ESTATE

Sales (in millions)	2013		Changes Attributable to:						2014
Three Months Ended March 31,			Price			Volume/Mix
Development	$	1	$	—		$	(1	)	$	—
Rural	3		1			1			5
Non-Strategic Timberlands	20		(1		)	(18		)	1
Total Sales	$	24	$	—		$	(18	)	$	6

Operating Income (in millions)	2013		Changes Attributable to:					2014
Three Months Ended March 31,			Price		Volume/Mix
					(Restated)			(Restated)
Total Operating Income	$	17	$	—	$	(16	)	$	1

35

First quarter sales of $6 million and operating income of $1 million decreased $18 million and $16 million, respectively, from the prior year period primarily due to lower non-strategic volumes and prices. The first quarter of 2013 included a 5,400 acre non-strategic sale in our Northern region at $3,673 per acre. Slightly higher rural HBU prices and volumes were partially offset by lower development HBU prices and volumes.

PERFORMANCE FIBERS

Sales (in millions)	2013		Changes Attributable to:						2014
Three Months Ended March 31,			Price			Volume/ Mix
Cellulose specialties	$	247	$	(6	)	$	(35	)	$	206
Viscose/other	—		—			26			26
Absorbent materials	37		—			(27		)	10
Total Sales	$	284	$	(6	)	$	(36	)	$	242

Total sales declined $42 million or approximately 15 percent, as the planned extended annual outage for the Jesup mill and production issues in the first quarter of 2014 reduced customer shipments. Cellulose specialties prices decreased 3 percent partially reflecting the result of the annual price negotiations. Absorbent material sales decreased $27 million or approximately 73 percent reflecting the transition from producing absorbent materials to producing viscose and other commodity grades.

Operating Income (in millions)	2013		Changes Attributable to:												2014
			Cellulose Specialties									Cost/Mix/Other
Three Months Ended March 31,			Price			Volume			Cost/Mix
Total Operating Income	$	92	$	(6	)	$	(14	)	$	(6	)	$	(17	)	$	49

Operating income declined $43 million as a result of lower cellulose specialties volumes and prices and higher wood and energy costs due to weather conditions. Operating income was also impacted by production issues and higher manufacturing costs as a result of the shift from absorbent materials to cellulose specialties and commodity viscose.

OTHER OPERATIONS

Sales from the New Zealand log trading business increased $5 million for the three months ended March 31, 2014 over the prior year period due to increased prices. Operating income remained consistent with prior period due to unfavorable movements in foreign currency rates.

Corporate and Other Expense/Eliminations

First quarter 2014 corporate and other operating expenses of $13 million increased $6 million from the prior year period. Expenses for the current quarter include $3.3 million related to the separation of our Performance Fibers business. The first quarter of 2013 included a $1.9 million gain on a foreign currency forward contract.

Interest Expense/Income and Income Tax Expense

Interest and other expenses increased $6 million from first quarter 2013 to 2014. The higher interest was primarily caused by lower capitalized interest related to the CSE project and higher debt levels associated with the consolidation of our New Zealand JV. First quarter 2014 results also reflect a $1.1 million loss on interest rate swaps as New Zealand long term interest rates moved slightly from the end of 2013.

The first quarter 2014 effective tax rate before discrete items was 18.5 percent compared to 23.4 percent in the prior year period. The decline in the effective tax rate was primarily due to proportionally higher earnings from REIT operations in 2014. Including discrete items, the first quarter 2014 effective tax rate was 15.7 percent compared to 4.1 percent in 2013. The lower effective rate in 2013 was due to the exchange of the alternative fuel mixture credit (“AFMC”) for the cellulosic biofuel producer credit (“CBPC”). See Note 5 —  Income Taxesfor additional information.

Employee Relations

Collective bargaining agreements at the Fernandina Beach, Florida mill will expire on April 30, 2014, and negotiations are underway. See Item 1 — Business and Item 1A — Risk Factors in our Amended Form 10-K for additional information on employee relations.

36

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,
	2014			2013
	(Restated)
Cash and cash equivalents (a)	$	156		$	200
Total debt	1,508			1,574
Shareholders’ equity	1,758			1,755
Total capitalization (total debt plus equity)	3,266			3,329
Debt to capital ratio	46		%	47		%

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

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:

	2014			2013
Cash provided by (used for):
Operating activities	$	99		$	90
Investing activities	—			24
Financing activities	(142		)	(129		)

Cash Provided by Operating Activities

Cash provided by operating activities in 2014 increased primarily due to lower tax payments, partially offset by lower operating results. The 2013 first quarter included a $70 million tax payment to exchange AFMC for CBPC.

Cash (Used for) Provided by Investing Activities

Cash provided by investing activities decreased primarily due to higher timberland acquisitions of $9 million in 2014 and $84 million from the sale of our Wood Products business in the first quarter of 2013. Partially offsetting these were higher restricted cash receipts of $35 million in 2014 and CSE project costs of $37 million in 2013.

Cash Used for Financing Activities

Cash used for financing activities increased $13 million primarily due to higher dividend payments as a result of the rate increase effective in the third quarter of 2013. In addition, net debt repayments increased $8 million compared to prior year.

37

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,
	2014		2013
	(Restated)
Net Income to EBITDA Reconciliation
Net Income	$	41	$	148
Interest, net	14		8
Income tax expense, continuing operations	8		4
Income tax expense, discontinued operations	—		22
Depreciation, depletion and amortization	49		36
Depreciation, depletion and amortization from discontinued operations	—		1
EBITDA	$	112	$	219

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,
	2014			2013
EBITDA by Segment
Forest Resources	$	53		$	30
Real Estate	2			21
Performance Fibers	70			107
Other Operations	—			—
Corporate and other	(13		)	61
EBITDA	$	112		$	219

First quarter 2014 EBITDA decreased from 2013 as 2013 included a $64 million gain on the sale of the Company’s Wood Products business. First quarter 2014 EBITDA also reflects lower Performance Fibers and Real Estate operating results, partially offset by higher Forest Resources results.

38

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
	(Restated)		(Restated)									(Restated)
Three Months Ended March 31, 2014
Operating Income	$	26	$	1	$	49	$	—	$	(13	)	$	63
Add: Depreciation, depletion and amortization	27		1		21		—		—			49
EBITDA	$	53	$	2	$	70	$	—	$	(13	)	$	112
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

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, strategic divestitures, the change in committed cash, and other items which include cash provided by discontinued operations, 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.”

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

	Three Months Ended March 31,
	2014			2013
Cash provided by operating activities	$	99		$	90
Capital expenditures (a)	(37		)	(33		)
Change in committed cash	5			1
Excess tax (deficiencies) benefits on stock-based compensation	(1		)	6
Other	6			3
CAD	72			67
Mandatory debt repayments	—			—
Adjusted CAD	$	72		$	67

Cash (used for) provided by investing activities	$	—		$	24
Cash used for financing activities	$	(142	)	$	(129	)

(a) Capital expenditures exclude strategic capital. Strategic capital totaled $11 million for timberland acquisitions for the three months ended March 31, 2014. Strategic capital totaled $58 million for the CSE and $2 million for timberland acquisitions for the three months ended March 31, 2013.

Adjusted CAD increased over the prior year period as lower tax payments in first quarter 2014 were partially offset by lower operating results from our Performance Fibers and Real Estate segments. Adjusted CAD generated in any period is not necessarily indicative of the amounts that may be generated in future periods.

Liquidity Facilities

During the first quarter 2014, we made net repayments of $80 million on our $450 million unsecured revolving credit facility. The Company had $323 million of available borrowings under this facility at March 31, 2014. During the three months ended March 31, 2014, the New Zealand JV borrowed $1.8 million on its working capital facility. Additional draws totaling $18.1 million remain available on the facility. During the first quarter, the New Zealand JV had no activity on its revolving credit facility. Unfavorable changes in exchange rates resulted in a $10 million increase to debt on a USD basis.

39

As of December 31, 2013, the 4.50% Senior Exchangeable Notes due 2015 were exchangeable at the option of the holders for the calendar quarter ending March 31, 2014. According to 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 three months ended March 31, 2014, 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, 2014. If the note holders exercise their options prior to June 30, 2014, 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. Covenants must also be met in connection with the New Zealand JV’s credit facility, including ratios of debt to forestry and land valuations and ratios of operating cash flows to financing costs. As of March 31, 2014, we were in compliance with all applicable financial 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 the Amended Form 10-K. See Note 12 — Guarantees for details on the letters of credit, surety bonds and guarantees as of March 31, 2014.

Sales Volume by Segment:

	Three Months Ended March 31,
	2014	2013
Forest Resources — in thousands of short green tons
Atlantic	836	868
Gulf States	438	410
Northern	543	455
New Zealand	459	—
Total	2,276	1,733
Real Estate — in acres
Development	27	86
Rural	1,733	1,175
Non-Strategic Timberlands	362	5,575
Total	2,122	6,836
Performance Fibers — in thousands of metric tons
Cellulose specialties	113	132
Viscose/other	34	—
Absorbent materials	16	56
Total	163	188

40

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 information required to be disclosed by the Company in reports filed under the Exchange Act, such as this quarterly report on Form 10-Q/A, is (1) recorded, processed, summarized and reported or submitted within the time periods specified in the SEC’s rules and forms and (2) accumulated and communicated to the Company’s management, including its 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 the Company’s disclosure controls and procedures as of the end of the period covered by this quarterly report on Form 10-Q/A, management, including the Chief Executive Officer and Chief Financial Officer, concluded the design and operation of the disclosure controls and procedures were not effective as of March 31, 2014.

On June 27, 2014, the Company spun off its Performance Fibers business to its shareholders as a newly formed publicly traded company named Rayonier Advanced Materials Inc. Following the spin-off, new management conducted a review of the Company’s operations and business strategies and identified issues related to its historical timber harvest levels, its estimate of merchantable timber inventory and the effect of such estimate on its calculation of depletion expense in each of the quarterly periods ended March 31, 2014 and June 30, 2014. At the direction of the Company’s Board of Directors, management commenced an internal review into these matters with the assistance of independent counsel, forensic accountants and financial advisers. As a result of the internal review, the Company concluded that it included in merchantable timber inventory for 2014, timber in specially designated parcels located in restricted, environmentally sensitive or economically inaccessible areas, which was incorrect, inconsistent with the Company’s definition of merchantable timber inventory, and a significant change from prior years. As a result, the Company concluded that it understated its depletion expense in cost of goods sold (referred to as “Cost of sales” in the Company's consolidated statements of income) by approximately $2.0 million in each of the quarterly periods ended March 31, 2014 and June 30, 2014, which resulted in a corresponding overstatement of income from continuing operations of $1.9 million and $2.0 million, respectively, in those periods. The Company has filed amendments to its Forms 10-Q for the quarterly periods ended March 31, 2014 and June 30, 2014 and restated its interim consolidated financial statements for those periods.

Management and E&Y originally concluded that there was not a material weakness in the Company’s internal control over financial reporting as of December 31, 2013, and this conclusion was reflected in the Company’s Initial Form 10-K. Subsequent to the filing of the Initial Form 10-K and in connection with the restatement discussed above, under the direction of the Chief Executive Officer and Chief Financial Officer, management conducted a reevaluation of the effectiveness of the Company’s internal control over financial reporting. After extensive consultation with E&Y and the Company’s forensic accountants, management has now concluded that the Company did not maintain effective control, as of December 31, 2013, over the accounting for depletion expense. Specifically, the Company’s controls related to the preparation and review of the annual depletion calculation which commenced in 2013 were not adequate to ensure that the changes in depletion rate estimates used to recognize depletion expense in 2014 were in accordance with accounting principles generally accepted in the United States of America. Further, these controls relied, in part, on electronic data from information technology systems with ineffective user access and program change management general controls. Accordingly, management has now concluded that the Company’s internal control over financial reporting was ineffective at December 31, 2013 based on the aggregation of these deficiencies. E&Y has reached the same conclusion.

In addition, because this material weakness was not adequately remediated as of March 31, 2014, June 30, 2014 or September 30, 2014, the Company’s internal control over financial reporting was ineffective at those dates as well. There were no other changes in the Company’s internal control over financial reporting that occurred during the quarterly period ended March 31, 2014 that materially affected, or are likely to materially affect, its internal control over financial reporting.

41

Remediation Plan

The Company has initiated a plan to remediate the material weakness described above. The implementation of this plan began in the third quarter of 2014 and consists of the following main elements:

• enhancing senior finance management supervision and review of the depletion rate estimates and coordination with the Company’s technical and operations personnel as to volumes of merchantable timber included in the calculation of depletion expense,

• instituting more formal procedures around the review and approval of changes to the estimate of merchantable timber inventory and its effect on the calculation of depletion expense, and

• implementing controls over user access and changes to system data used in the depletion rate estimates.

Prior to the remediation of the material weakness, there is a risk that material misstatements in the Company’s interim or annual financial statements may occur. The Company can give no assurance that the measures it takes will remediate the material weakness that it has identified or that additional material weaknesses will not arise in the future. The Company will continue to monitor the effectiveness of these and other processes, procedures, and controls and will make any further changes management determines to be appropriate.

42

PART II.    OTHER INFORMATION

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/A for the fiscal quarter ended March 31, 2014, formatted in Extensible Business Reporting Language (“XBRL”), includes: (i) the Consolidated Statements of Income and Comprehensive Income for the Three Months Ended March 31, 2014 and 2013; (ii) the Consolidated Balance Sheets as of March 31, 2014 and December 31, 2013; (iii) the Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2014 and 2013; and (iv) the Notes to Consolidated Financial Statements	Filed herewith

43

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/ H. EDWIN KIKER
	H. Edwin Kiker Senior Vice President and Chief Financial Officer (Duly Authorized Officer, Principal Financial Officer and Principal Accounting Officer)

Date: November 10, 2014

44

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, David L. Nunes, certify that:

1. I have reviewed this quarterly report on Form 10-Q/A 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: November 10, 2014

/S/ DAVID L. NUNES

David L. Nunes

President and Chief Executive Officer, Rayonier Inc.

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, H. Edwin Kiker, certify that:

1. I have reviewed this quarterly report on Form 10-Q/A 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: November 10, 2014

/s/ H. EDWIN KIKER

H. Edwin Kiker

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/A of Rayonier Inc. (the "Company") for the period ended March 31, 2014 (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.

November 10, 2014

/s/ DAVID L. NUNES	/s/ H. EDWIN KIKER
David L. Nunes	H. Edwin Kiker
President and Chief Executive Officer, Rayonier Inc.	Senior Vice President and Chief Financial Officer, Rayonier Inc.

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EMPLOYEE BENEFIT PLANS (Tables)

3 Months Ended

Mar. 31, 2014

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

Schedule of Net Benefit Costs

The net pension and postretirement benefit costs that have been recorded are shown in the following tables:

	Pension						Postretirement
	Three Months Ended March 31,						Three Months Ended March 31,
	2014			2013			2014			2013
Components of Net Periodic Benefit Cost
Service cost	$	1,624		$	2,419		$	179		$	249
Interest cost	4,683			4,834			206			240
Expected return on plan assets	(6,658		)	(7,424		)	—			—
Amortization of prior service cost	292			388			4			6
Amortization of losses	2,737			5,727			129			218
Amortization of negative plan amendment	—			—			(134		)	—
Net periodic benefit cost	$	2,678		$	5,944		$	384		$	713

XML

RESTRICTED DEPOSITS (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Restricted Cash and Investments [Abstract]
Maximum Time Period Proceeds From LKE Sale Maintained with Third Party Intermediary	180 days
Restricted Cash and Cash Equivalents	$ 23.6	$ 68.9

XML

EARNINGS PER COMMON SHARE Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details)	3 Months Ended
	Mar. 31, 2014		Mar. 31, 2013
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the computations of diluted earnings per share	1,794,584		2,336,660
Stock options, performance and restricted shares [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the computations of diluted earnings per share	731,046		220,701
Assumed conversion of exchangable note hedges [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the computations of diluted earnings per share	1,063,538	[1]	2,115,959	[1]

[1] 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 Amended Form 10-K and Note 16 — Debt of this Form 10-Q/A.

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EMPLOYEE BENEFIT PLANS Net Periodic Benefit Cost (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Pension [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 1,624	$ 2,419
Interest cost	4,683	4,834
Expected return on plan assets	(6,658)	(7,424)
Amortization of prior service cost	292	388
Amortization of losses	2,737	5,727
Amortization of negative plan amendment	0	0
Net periodic benefit cost	2,678	5,944
Postretirement [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	179	249
Interest cost	206	240
Expected return on plan assets	0	0
Amortization of prior service cost	4	6
Amortization of losses	129	218
Amortization of negative plan amendment	(134)	0
Net periodic benefit cost	$ 384	$ 713

XML

JOINT VENTURE INVESTMENT Narrative (Details) (USD $) In Millions, unless otherwise specified	0 Months Ended
	Apr. 04, 2013	Mar. 31, 2013
Business Acquisition [Line Items]
Effective Date of Acquisition	Apr. 04, 2013
Additional ownership interest acquired	39.00%
Name of Acquired Entity	Matariki Forestry Group
Description of Acquired Entity	a joint venture (“New Zealand JV”) that owns or leases approximately 0.3 million acres of New Zealand timberlands.
Post-acquisition ownership percentage	65.00%
Ownership Percentage by Noncontrolling Owners	35.00%
Pre-acquisition ownership percentage	26.00%	26.00%
Purchase price	$ 139.9
Step Acquisition Description	The additional 39 percent interest was acquired for $139.9 million and resulted in the Company obtaining a controlling financial interest in the New Zealand JV and accordingly, the purchase was accounted for as a step-acquisition. Upon consolidation, the Company recognized a $10.1 million deferred gain, which resulted from the original sale of its New Zealand operations to the joint venture in 2005 and a $6 million benefit due to the required fair market value remeasurement of the Company’s equity interest in the New Zealand JV held before the purchase of the additional interest.
Acquisition date fair value	93.3
Matariki Forestry Group [Member]
Business Acquisition [Line Items]
Acres Of Timberland Owned Managed	300,000
Recognition of deferred gain on original sale of operations [Member]
Business Acquisition [Line Items]
Step Acquisition, Remeasurement Gain, Amount	10.1
Gain on fair market value revaluation of equity interest [Member]
Business Acquisition [Line Items]
Step Acquisition, Remeasurement Gain, Amount	$ 6.0

XML

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS Restatement of Consolidated Balance Sheet (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Prepaid and Other Current Assets	$ 54,577	$ 46,576
Timber and Timberlands, Net of Depletion and Amortization	2,067,549	2,049,378
Retained earnings	994,624	1,015,209
As Previously Preported [Member]
Prepaid and Other Current Assets	54,557
Timber and Timberlands, Net of Depletion and Amortization	2,069,518
Retained earnings	996,573
Restatement [Member]
Prepaid and Other Current Assets	20
Timber and Timberlands, Net of Depletion and Amortization	(1,969)
Retained earnings	$ (1,949)

XML

SHAREHOLDERS'S EQUITY (Tables)

3 Months Ended

Mar. 31, 2014

Stockholders' Equity Note [Abstract]

Schedule of Stockholders Equity

An analysis of shareholders’ equity for the three months ended March 31, 2014 and the year ended December 31, 2013 is shown below (share amounts not in thousands):

	Rayonier Inc. Shareholders Equity
	Common Shares					Retained Earnings (Restated)			Accumulated Other Comprehensive Income/(Loss)			Non-controlling Interest			Total Shareholders’ Equity (Restated)
	Shares		Amount
Balance, December 31, 2012	123,332,444		$	670,749		$	876,634		$	(109,379	)	$	—		$	1,438,004
Net income	—		—			371,896			—			1,902			373,798
Dividends ($1.86 per share)	—		—			(233,321		)	—			—			(233,321		)
Issuance of shares under incentive stock plans	1,001,426		10,101			—			—			—			10,101
Stock-based compensation	—		11,710			—			—			—			11,710
Excess tax benefit on stock-based compensation	—		8,413			—			—			—			8,413
Repurchase of common shares	(211,221	)	(11,326		)	—			—			—			(11,326		)
Equity portion of convertible debt (Note 15)	—		2,453			—			—			—			2,453
Settlement of warrants (Note 15)	2,135,221		—			—			—			—			—
Net gain from pension and postretirement plans	—		—			—			61,869			—			61,869
Acquisition of noncontrolling interest	—		—			—			—			96,336			96,336
Noncontrolling interest redemption of shares	—		—			—			—			(713		)	(713		)
Foreign currency translation adjustment	—		—			—			(1,915		)	(3,795		)	(5,710		)
Joint venture cash flow hedges	—		—			—			3,286			343			3,629
Balance, December 31, 2013	126,257,870		$	692,100		$	1,015,209		$	(46,139	)	$	94,073		$	1,755,243
Net income (loss)	—		—			41,426			—			(83		)	41,343
Dividends ($0.49 per share)	—		—			(62,011		)	—			—			(62,011		)
Issuance of shares under incentive stock plans	235,843		2,027			—			—			—			2,027
Stock-based compensation	—		3,103			—			—			—			3,103
Excess tax deficiency on stock-based compensation	—		(1,240		)	—			—			—			(1,240		)
Repurchase of common shares	(42,208	)	(1,754		)	—			—			—			(1,754		)
Amortization of pension and postretirement plans	—		—			—			2,097			—			2,097
Noncontrolling interest redemption of shares	—		—			—			—			(679		)	(679		)
Foreign currency translation adjustment	—		—			—			12,893			4,910			17,803
Joint venture cash flow hedges	—		—			—			1,112			599			1,711
Balance, March 31, 2014	126,451,505		$	694,236		$	994,624		$	(30,037	)	$	98,820		$	1,757,643

XML

OTHER OPERATING (EXPENSE) INCOME, NET (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Other Operating Income, Net [Abstract]
Lease income, primarily from hunting leases	$ 3,036	$ 2,462
Other non-timber income	552	474
Foreign currency loss	(1,490)	(184)
Loss on sale or disposal of property, plant & equipment	(532)	(429)
(Loss) gain on foreign currency exchange contracts	(32)	1,881
Separation costs related to Rayonier Advanced Materials Inc.	(3,318)	(86)
Miscellaneous expense, net	(1,753)	(615)
Total	$ (3,537)	$ 3,503

XML

SHAREHOLDERS'S EQUITY (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013	Dec. 31, 2012
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total stockholders' equity, Beginning balance	$ 1,755,243	$ 1,438,004	$ 1,438,004
Net income (loss)	41,343	147,735	373,798
Dividends ($1.86 per share for 2013 and $0.49 per share for 3 months ended 3/31/14)	(62,011)		(233,321)
Issuance of shares under incentive stock plans	2,027		10,101
Stock-based compensation	3,103		11,710
Excess tax benefit (deficiency) on stock-based compensation	(1,240)		8,413
Repurchase of common shares	(1,754)		(11,326)
Equity portion of convertible debt (Note 15)			2,453
Amortization of / net gain from pension and postretirement plans	2,097	4,969	61,869
Acquisition of noncontrolling interest			96,336
Noncontrolling interest redemption of shares	(679)		(713)
Foreign currency translation adjustment, Total	17,803	975	(5,710)
Joint venture cash flow hedges, Total	1,711	554	3,629
Total stockholders' equity, Ending balance	1,757,643		1,755,243	1,438,004
Dividends [Abstract]
Common Stock, Dividends, Per Share, Declared	$ 0.49			$ 1.86
Warrants on Senior Exchangeable Notes due 2012 [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Settlement of warrants (Note 15) (in shares)		2,037,303
Common Shares [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stockholders' equity, beginning balance (in shares)	126,257,870	123,332,444	123,332,444
Total stockholders' equity, Beginning balance	692,100	670,749	670,749
Issuance of shares under incentive stock plan (in shares)	235,843		1,001,426
Issuance of shares under incentive stock plans	2,027		10,101
Stock-based compensation	3,103		11,710
Excess tax benefit (deficiency) on stock-based compensation	(1,240)		8,413
Repurchase of common shares (in shares)	(42,208)		(211,221)
Repurchase of common shares	(1,754)		(11,326)
Equity portion of convertible debt (Note 15)			2,453
Stockholders' equity, ending balance (in shares)	126,451,505		126,257,870
Total stockholders' equity, Ending balance	694,236		692,100
Common Shares [Member] | Warrants on Senior Exchangeable Notes due 2012 [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Settlement of warrants (Note 15) (in shares)			2,135,221
Retained Earnings [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total stockholders' equity, Beginning balance	1,015,209	876,634	876,634
Net income (loss)	41,426		371,896
Dividends ($1.86 per share for 2013 and $0.49 per share for 3 months ended 3/31/14)	(62,011)		(233,321)
Total stockholders' equity, Ending balance	994,624		1,015,209
Accumulated Other Comprehensive Income (Loss) [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total stockholders' equity, Beginning balance	(46,139)	(109,379)	(109,379)
Amortization of / net gain from pension and postretirement plans	2,097		61,869
Foreign currency translation adjustment, Total	12,893		(1,915)
Joint venture cash flow hedges, Total	1,112		3,286
Total stockholders' equity, Ending balance	(30,037)		(46,139)
Noncontrolling Interest [Member]
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Total stockholders' equity, Beginning balance	94,073	0	0
Net income (loss)	(83)		1,902
Acquisition of noncontrolling interest			96,336
Noncontrolling interest redemption of shares	(679)		(713)
Foreign currency translation adjustment, Total	4,910		(3,795)
Joint venture cash flow hedges, Total	599		343
Total stockholders' equity, Ending balance	$ 98,820		$ 94,073

XML

CONSOLIDATING FINANCIAL STATEMENTS Condensed Consolidating Balance Sheets (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013	Dec. 31, 2012
CURRENT ASSETS
Cash and cash equivalents	$ 156,071	$ 199,644	$ 266,017	$ 280,596
Accounts receivable, less allowance for doubtful accounts	111,697	94,956
Inventory	141,928	138,818
Deferred tax assets	31,580	39,100
Prepaid and other current assets	54,577	46,576
Total current assets	495,853	519,094
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	2,067,549	2,049,378
NET PROPERTY, PLANT AND EQUIPMENT	861,969	860,821
INVESTMENT IN SUBSIDIARIES	0	0
INTERCOMPANY NOTES RECEIVABLE	0	0
OTHER ASSETS	217,458	256,208
TOTAL ASSETS	3,642,829	3,685,501
CURRENT LIABILITIES
Accounts payable	86,282	69,293
Current maturities of long-term debt	114,319	112,500
Accrued taxes	11,374	8,551
Accrued payroll and benefits	19,261	24,948
Accrued interest	13,857	9,531
Accrued customer incentives	10,082	9,580
Other current liabilities	35,870	34,874
Current liabilities for dispositions and discontinued operations	6,446	6,835
Total current liabilities	297,491	276,112
LONG-TERM DEBT	1,393,887	1,461,724
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	67,456	69,543
PENSION AND OTHER POSTRETIREMENT BENEFITS	95,098	95,654
OTHER NON-CURRENT LIABILITIES	31,254	27,225
INTERCOMPANY PAYABLE	0	0
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,658,823	1,661,170
Noncontrolling interest	98,820	94,073
TOTAL SHAREHOLDERS’ EQUITY	1,757,643	1,755,243		1,438,004
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	3,642,829	3,685,501
Rayonier Inc. (Parent Guarantor) [Member]
CURRENT ASSETS
Cash and cash equivalents	93,840	130,181	151,978	252,888
Accounts receivable, less allowance for doubtful accounts	0	0
Inventory	0	0
Deferred tax assets	0	0
Prepaid and other current assets	0	0
Total current assets	93,840	130,181
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	0	0
NET PROPERTY, PLANT AND EQUIPMENT	0	0
INVESTMENT IN SUBSIDIARIES	1,675,347	1,627,315
INTERCOMPANY NOTES RECEIVABLE	216,844	228,032
OTHER ASSETS	3,569	3,689
TOTAL ASSETS	1,989,600	1,989,217
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	5,777	3,047
Accrued customer incentives	0	0
Other current liabilities	0	0
Current liabilities for dispositions and discontinued operations	0	0
Total current liabilities	5,777	3,047
LONG-TERM DEBT	325,000	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 RAYONIER INC. SHAREHOLDERS’ EQUITY	1,658,823
Noncontrolling interest	0
TOTAL SHAREHOLDERS’ EQUITY	1,658,823	1,661,170
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	1,989,600	1,989,217
Senior Exchangeable Notes due 2015 at a fixed interest rate of 4.50% [Member] | ROC (Subsidiary Guarantor) [Member]
CURRENT ASSETS
Cash and cash equivalents	4,494	304	20,930	3,966
Accounts receivable, less allowance for doubtful accounts	10	10
Inventory	0	0
Deferred tax assets	0	0
Prepaid and other current assets	6,582	2,363
Total current assets	11,086	2,677
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	0	0
NET PROPERTY, PLANT AND EQUIPMENT	2,698	2,612
INVESTMENT IN SUBSIDIARIES	1,851,260	1,837,760
INTERCOMPANY NOTES RECEIVABLE	0	0
OTHER ASSETS	32,705	32,519
TOTAL ASSETS	1,897,749	1,875,568
CURRENT LIABILITIES
Accounts payable	1,054	1,522
Current maturities of long-term debt	0	0
Accrued taxes	14	4,855
Accrued payroll and benefits	8,038	11,382
Accrued interest	669	538
Accrued customer incentives	0	0
Other current liabilities	9,058	8,765
Current liabilities for dispositions and discontinued operations	0	0
Total current liabilities	18,833	27,062
LONG-TERM DEBT	0	0
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	0	0
PENSION AND OTHER POSTRETIREMENT BENEFITS	91,807	91,471
OTHER NON-CURRENT LIABILITIES	13,763	11,493
INTERCOMPANY PAYABLE	97,999	118,227
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,675,347
Noncontrolling interest	0
TOTAL SHAREHOLDERS’ EQUITY	1,675,347	1,627,315
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	1,897,749	1,875,568
Senior Exchangeable Notes due 2015 at a fixed interest rate of 4.50% [Member] | Subsidiary Issuer [Member]
CURRENT ASSETS
Cash and cash equivalents	(178)	10,719	31,749	19,358
Accounts receivable, less allowance for doubtful accounts	689	2,300
Inventory	0	0
Deferred tax assets	646	681
Prepaid and other current assets	3	6
Total current assets	1,160	13,706
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	0	0
NET PROPERTY, PLANT AND EQUIPMENT	0	0
INVESTMENT IN SUBSIDIARIES	1,170,755	1,148,221
INTERCOMPANY NOTES RECEIVABLE	20,866	20,659
OTHER ASSETS	3,496	3,739
TOTAL ASSETS	1,196,277	1,186,325
CURRENT LIABILITIES
Accounts payable	2,102	1,564
Current maturities of long-term debt	112,500	112,500
Accrued taxes	0	0
Accrued payroll and benefits	0	0
Accrued interest	3,723	2,742
Accrued customer incentives	0	0
Other current liabilities	0	0
Current liabilities for dispositions and discontinued operations	0	0
Total current liabilities	118,325	116,806
LONG-TERM DEBT	768,228	847,749
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 RAYONIER INC. SHAREHOLDERS’ EQUITY	309,724
Noncontrolling interest	0
TOTAL SHAREHOLDERS’ EQUITY	309,724	221,770
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	1,196,277	1,186,325
Senior Exchangeable Notes due 2015 at a fixed interest rate of 4.50% [Member] | Non-guarantors [Member]
CURRENT ASSETS
Cash and cash equivalents	57,915	58,440	61,360	4,384
Accounts receivable, less allowance for doubtful accounts	110,998	92,646
Inventory	141,928	138,818
Deferred tax assets	30,934	38,419
Prepaid and other current assets	47,992	44,207
Total current assets	389,767	372,530
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	2,067,549	2,049,378
NET PROPERTY, PLANT AND EQUIPMENT	859,271	858,209
INVESTMENT IN SUBSIDIARIES	0	0
INTERCOMPANY NOTES RECEIVABLE	0	0
OTHER ASSETS	177,688	216,261
TOTAL ASSETS	3,494,275	3,496,378
CURRENT LIABILITIES
Accounts payable	83,126	66,207
Current maturities of long-term debt	1,819	0
Accrued taxes	11,360	3,696
Accrued payroll and benefits	11,223	13,566
Accrued interest	25,112	22,816
Accrued customer incentives	10,082	9,580
Other current liabilities	26,812	26,109
Current liabilities for dispositions and discontinued operations	6,446	6,835
Total current liabilities	175,980	148,809
LONG-TERM DEBT	300,659	288,975
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	67,456	69,543
PENSION AND OTHER POSTRETIREMENT BENEFITS	3,291	4,183
OTHER NON-CURRENT LIABILITIES	17,491	15,732
INTERCOMPANY PAYABLE	151,938	125,921
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	2,678,640
Noncontrolling interest	98,820
TOTAL SHAREHOLDERS’ EQUITY	2,777,460	2,843,215
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	3,494,275	3,496,378
Senior Exchangeable Notes due 2015 at a fixed interest rate of 4.50% [Member] | Consolidation Adjustments [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	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 SUBSIDIARIES	(4,697,362)	(4,613,296)
INTERCOMPANY NOTES RECEIVABLE	(237,710)	(248,691)
OTHER ASSETS	0	0
TOTAL ASSETS	(4,935,072)	(4,861,987)
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	(21,424)	(19,612)
Accrued customer incentives	0	0
Other current liabilities	0	0
Current liabilities for dispositions and discontinued operations	0	0
Total current liabilities	(21,424)	(19,612)
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	(249,937)	(244,148)
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	(4,663,711)
Noncontrolling interest	0
TOTAL SHAREHOLDERS’ EQUITY	(4,663,711)	(4,598,227)
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	(4,935,072)	(4,861,987)
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | ROC (Subsidiary Guarantor) [Member]
CURRENT ASSETS
Cash and cash equivalents	4,316	11,023	52,679	23,324
Accounts receivable, less allowance for doubtful accounts	699	2,310
Inventory	0	0
Deferred tax assets	646	681
Prepaid and other current assets	6,585	2,369
Total current assets	12,246	16,383
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	0	0
NET PROPERTY, PLANT AND EQUIPMENT	2,698	2,612
INVESTMENT IN SUBSIDIARIES	2,712,291	2,764,211
INTERCOMPANY NOTES RECEIVABLE	20,866	20,659
OTHER ASSETS	36,201	36,258
TOTAL ASSETS	2,784,302	2,840,123
CURRENT LIABILITIES
Accounts payable	3,156	3,086
Current maturities of long-term debt	112,500	112,500
Accrued taxes	14	4,855
Accrued payroll and benefits	8,038	11,382
Accrued interest	4,392	3,280
Accrued customer incentives	0	0
Other current liabilities	9,058	8,765
Current liabilities for dispositions and discontinued operations	0	0
Total current liabilities	137,158	143,868
LONG-TERM DEBT	768,228	847,749
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	0	0
PENSION AND OTHER POSTRETIREMENT BENEFITS	91,807	91,471
OTHER NON-CURRENT LIABILITIES	13,763	11,493
INTERCOMPANY PAYABLE	97,999	118,227
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,675,347
Noncontrolling interest	0
TOTAL SHAREHOLDERS’ EQUITY	1,675,347	1,627,315
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	2,784,302	2,840,123
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | Non-guarantors [Member]
CURRENT ASSETS
Cash and cash equivalents	57,915	58,440	61,360	4,384
Accounts receivable, less allowance for doubtful accounts	110,998	92,646
Inventory	141,928	138,818
Deferred tax assets	30,934	38,419
Prepaid and other current assets	47,992	44,207
Total current assets	389,767	372,530
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	2,067,549	2,049,378
NET PROPERTY, PLANT AND EQUIPMENT	859,271	858,209
INVESTMENT IN SUBSIDIARIES	0	0
INTERCOMPANY NOTES RECEIVABLE	0	0
OTHER ASSETS	177,688	216,261
TOTAL ASSETS	3,494,275	3,496,378
CURRENT LIABILITIES
Accounts payable	83,126	66,207
Current maturities of long-term debt	1,819	0
Accrued taxes	11,360	3,696
Accrued payroll and benefits	11,223	13,566
Accrued interest	25,112	22,816
Accrued customer incentives	10,082	9,580
Other current liabilities	26,812	26,109
Current liabilities for dispositions and discontinued operations	6,446	6,835
Total current liabilities	175,980	148,809
LONG-TERM DEBT	300,659	288,975
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	67,456	69,543
PENSION AND OTHER POSTRETIREMENT BENEFITS	3,291	4,183
OTHER NON-CURRENT LIABILITIES	17,491	15,732
INTERCOMPANY PAYABLE	151,938	125,921
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	2,678,640
Noncontrolling interest	98,820
TOTAL SHAREHOLDERS’ EQUITY	2,777,460	2,843,215
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	3,494,275	3,496,378
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | Consolidation Adjustments [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	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 SUBSIDIARIES	(4,387,638)	(4,391,526)
INTERCOMPANY NOTES RECEIVABLE	(237,710)	(248,691)
OTHER ASSETS	0	0
TOTAL ASSETS	(4,625,348)	(4,640,217)
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	(21,424)	(19,612)
Accrued customer incentives	0	0
Other current liabilities	0	0
Current liabilities for dispositions and discontinued operations	0	0
Total current liabilities	(21,424)	(19,612)
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	(249,937)	(244,148)
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	(4,353,987)
Noncontrolling interest	0
TOTAL SHAREHOLDERS’ EQUITY	(4,353,987)	(4,376,457)
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ (4,625,348)	$ (4,640,217)

XML

CONSOLIDATING FINANCIAL STATEMENTS Condensed Consolidating Statements of Cash Flows (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Statement of Cash Flows [Abstract]
CASH PROVIDED BY OPERATING ACTIVITIES	$ 99,274	$ 89,660
INVESTING ACTIVITIES
Capital expenditures	(36,755)	(32,664)
Purchase of timberlands	(10,637)	(1,560)
Jesup mill cellulose specialties expansion	0	(36,734)
Proceeds from the disposition of Wood Products business	0	83,741
Change in restricted cash	45,312	9,908
Investment in Subsidiaries	0	0
Other	1,592	1,790
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	(488)	24,481
FINANCING ACTIVITIES
Issuance of debt	31,819	100,000
Repayment of debt	(110,000)	(170,000)
Dividends paid	(62,545)	(57,744)
Proceeds from the issuance of common shares	2,027	4,091
Excess tax (deficiencies) benefits on stock-based compensation	(1,240)	6,191
Repurchase of common shares	(1,754)	(11,241)
Intercompany distributions	0	0
Other	(679)	0
CASH USED FOR FINANCING ACTIVITIES	(142,372)	(128,703)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	13	(17)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(43,573)	(14,579)
Balance, beginning of year	199,644	280,596
Balance, end of period	156,071	266,017
Rayonier Inc. (Parent Guarantor) [Member]
Statement of Cash Flows [Abstract]
CASH PROVIDED BY OPERATING ACTIVITIES	25,931	13,984
INVESTING ACTIVITIES
Capital expenditures	0	0
Purchase of timberlands	0	0
Jesup mill cellulose specialties expansion		0
Proceeds from the disposition of Wood Products business		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	0	100,000
Repayment of debt	0	(150,000)
Dividends paid	(62,545)	(57,744)
Proceeds from the issuance of common shares	2,027	4,091
Excess tax (deficiencies) benefits on stock-based compensation	0	0
Repurchase of common shares	(1,754)	(11,241)
Intercompany distributions	0	0
Other	0
CASH USED FOR FINANCING ACTIVITIES	(62,272)	(114,894)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	0	0
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(36,341)	(100,910)
Balance, beginning of year	130,181	252,888
Balance, end of period	93,840	151,978
Senior Exchangeable Notes due 2015 at a fixed interest rate of 4.50% [Member] | ROC (Subsidiary Guarantor) [Member]
Statement of Cash Flows [Abstract]
CASH PROVIDED BY OPERATING ACTIVITIES	32,794	22,259
INVESTING ACTIVITIES
Capital expenditures	(170)	(89)
Purchase of timberlands	0	0
Jesup mill cellulose specialties expansion		0
Proceeds from the disposition of Wood Products business		0
Change in restricted cash	0	0
Investment in Subsidiaries	0	0
Other	0	0
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	(170)	(89)
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 (deficiencies) benefits on stock-based compensation	0	0
Repurchase of common shares	0	0
Intercompany distributions	(28,434)	(5,206)
Other	0
CASH USED FOR FINANCING ACTIVITIES	(28,434)	(5,206)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	0	0
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	4,190	16,964
Balance, beginning of year	304	3,966
Balance, end of period	4,494	20,930
Senior Exchangeable Notes due 2015 at a fixed interest rate of 4.50% [Member] | Subsidiary Issuer [Member]
Statement of Cash Flows [Abstract]
CASH PROVIDED BY OPERATING ACTIVITIES	0	0
INVESTING ACTIVITIES
Capital expenditures	0	0
Purchase of timberlands	0	0
Jesup mill cellulose specialties expansion		0
Proceeds from the disposition of Wood Products business		0
Change in restricted cash	0	0
Investment in Subsidiaries	69,103	32,391
Other	0	0
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	69,103	32,391
FINANCING ACTIVITIES
Issuance of debt	30,000	0
Repayment of debt	(110,000)	(20,000)
Dividends paid	0	0
Proceeds from the issuance of common shares	0	0
Excess tax (deficiencies) benefits on stock-based compensation	0	0
Repurchase of common shares	0	0
Intercompany distributions	0	0
Other	0
CASH USED FOR FINANCING ACTIVITIES	(80,000)	(20,000)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	0	0
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(10,897)	12,391
Balance, beginning of year	10,719	19,358
Balance, end of period	(178)	31,749
Senior Exchangeable Notes due 2015 at a fixed interest rate of 4.50% [Member] | Non-guarantors [Member]
Statement of Cash Flows [Abstract]
CASH PROVIDED BY OPERATING ACTIVITIES	67,759	58,980
INVESTING ACTIVITIES
Capital expenditures	(36,585)	(32,575)
Purchase of timberlands	(10,637)	(1,560)
Jesup mill cellulose specialties expansion		(36,734)
Proceeds from the disposition of Wood Products business		83,741
Change in restricted cash	45,312	9,908
Investment in Subsidiaries	0	0
Other	1,592	1,790
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	(318)	24,570
FINANCING ACTIVITIES
Issuance of debt	1,819	0
Repayment of debt	0	0
Dividends paid	0	0
Proceeds from the issuance of common shares	0	0
Excess tax (deficiencies) benefits on stock-based compensation	(1,240)	6,191
Repurchase of common shares	0	0
Intercompany distributions	(67,879)	(32,748)
Other	(679)
CASH USED FOR FINANCING ACTIVITIES	(67,979)	(26,557)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	13	(17)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(525)	56,976
Balance, beginning of year	58,440	4,384
Balance, end of period	57,915	61,360
Senior Exchangeable Notes due 2015 at a fixed interest rate of 4.50% [Member] | Consolidation Adjustments [Member]
Statement of Cash Flows [Abstract]
CASH PROVIDED BY OPERATING ACTIVITIES	(27,210)	(5,563)
INVESTING ACTIVITIES
Capital expenditures	0	0
Purchase of timberlands	0	0
Jesup mill cellulose specialties expansion		0
Proceeds from the disposition of Wood Products business		0
Change in restricted cash	0	0
Investment in Subsidiaries	(69,103)	(32,391)
Other	0	0
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	(69,103)	(32,391)
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 (deficiencies) benefits on stock-based compensation	0	0
Repurchase of common shares	0	0
Intercompany distributions	96,313	37,954
Other	0
CASH USED FOR FINANCING ACTIVITIES	96,313	37,954
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] | ROC (Subsidiary Guarantor) [Member]
Statement of Cash Flows [Abstract]
CASH PROVIDED BY OPERATING ACTIVITIES	32,794	22,259
INVESTING ACTIVITIES
Capital expenditures	(170)	(89)
Purchase of timberlands	0	0
Jesup mill cellulose specialties expansion		0
Proceeds from the disposition of Wood Products business		0
Change in restricted cash	0	0
Investment in Subsidiaries	69,103	32,391
Other	0	0
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	68,933	32,302
FINANCING ACTIVITIES
Issuance of debt	30,000	0
Repayment of debt	(110,000)	(20,000)
Dividends paid	0	0
Proceeds from the issuance of common shares	0	0
Excess tax (deficiencies) benefits on stock-based compensation	0	0
Repurchase of common shares	0	0
Intercompany distributions	(28,434)	(5,206)
Other	0
CASH USED FOR FINANCING ACTIVITIES	(108,434)	(25,206)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	0	0
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(6,707)	29,355
Balance, beginning of year	11,023	23,324
Balance, end of period	4,316	52,679
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | Non-guarantors [Member]
Statement of Cash Flows [Abstract]
CASH PROVIDED BY OPERATING ACTIVITIES	67,759	58,980
INVESTING ACTIVITIES
Capital expenditures	(36,585)	(32,575)
Purchase of timberlands	(10,637)	(1,560)
Jesup mill cellulose specialties expansion		(36,734)
Proceeds from the disposition of Wood Products business		83,741
Change in restricted cash	45,312	9,908
Investment in Subsidiaries	0	0
Other	1,592	1,790
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	(318)	24,570
FINANCING ACTIVITIES
Issuance of debt	1,819	0
Repayment of debt	0	0
Dividends paid	0	0
Proceeds from the issuance of common shares	0	0
Excess tax (deficiencies) benefits on stock-based compensation	(1,240)	6,191
Repurchase of common shares	0	0
Intercompany distributions	(67,879)	(32,748)
Other	(679)
CASH USED FOR FINANCING ACTIVITIES	(67,979)	(26,557)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	13	(17)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(525)	56,976
Balance, beginning of year	58,440	4,384
Balance, end of period	57,915	61,360
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | Consolidation Adjustments [Member]
Statement of Cash Flows [Abstract]
CASH PROVIDED BY OPERATING ACTIVITIES	(27,210)	(5,563)
INVESTING ACTIVITIES
Capital expenditures	0	0
Purchase of timberlands	0	0
Jesup mill cellulose specialties expansion		0
Proceeds from the disposition of Wood Products business		0
Change in restricted cash	0	0
Investment in Subsidiaries	(69,103)	(32,391)
Other	0	0
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	(69,103)	(32,391)
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 (deficiencies) benefits on stock-based compensation	0	0
Repurchase of common shares	0	0
Intercompany distributions	96,313	37,954
Other	0
CASH USED FOR FINANCING ACTIVITIES	96,313	37,954
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

DEBT Narrative (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
April 2011 Line of Credit as Amended October 2012 [Member]
Debt Instrument [Line Items]
Repayments on line of credit	$ 80
Remaining borrowing capacity	323
Amount to secure letters of credit	2
Senior Exchangeable Notes due 2015 at a fixed interest rate of 4.50% [Member]
Debt Instrument [Line Items]
Maturity date	2015
Exchange period beginning date	Mar. 31, 2014
Exchange feature description	According to 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.
Percent of the exchange price the stock price must exceed	130.00%
Trading day threshold	20 days
Number of trading days for stock price	30 days
Exchange feature end date	Jun. 30, 2014
Term Credit Agreement due 2019 [Member]
Debt Instrument [Line Items]
Additional borrowings	1.8
Unused borrowing capacity	$ 18.1

XML

OTHER OPERATING (EXPENSE) INCOME, NET

3 Months Ended

Mar. 31, 2014

Other Operating Income, Net [Abstract]

OTHER OPERATING (EXPENSE) INCOME, NET

OTHER OPERATING (EXPENSE) INCOME, NET

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

	Three Months Ended March 31,
	2014			2013
Lease income, primarily from hunting leases	$	3,036		$	2,462
Other non-timber income	552			474
Foreign currency loss	(1,490		)	(184		)
Loss on sale or disposal of property, plant & equipment	(532		)	(429		)
(Loss) gain on foreign currency exchange contracts	(32		)	1,881
Separation costs related to Rayonier Advanced Materials Inc.	(3,318		)	(86		)
Miscellaneous expense, net	(1,753		)	(615		)
Total	$	(3,537	)	$	3,503

XML

INCOME TAXES AFMC for CBPC exchange Narrative (Details) (USD $) In Millions, unless otherwise specified		12 Months Ended		3 Months Ended
	Dec. 31, 2009 tax_credit	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] gal
AFMC for CBPC Exchange [Line Items]
Number of tax credits	2
Tax Credit Amount per Gallon		0.50	1.01
Tax payment				$ 70
Gallons Exchanged				120,000,000
Income Tax Benefit				$ 19

XML

CONSOLIDATING FINANCIAL STATEMENTS (Tables)

3 Months Ended

Mar. 31, 2014

Senior Exchangeable Notes due 2015 [Member]

Condensed Financial Statements, Captions [Line Items]

Schedule of Condensed Consolidating Statement of Income and Comprehensive Income

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME  AND COMPREHENSIVE INCOME For the Three Months Ended March 31, 2014
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
	(Restated)			(Restated)						(Restated)			(Restated)			(Restated)
SALES	$	—		$	—		$	—		$	386,686		$	—		$	386,686
Costs and Expenses
Cost of sales	—			—			—			304,619			—			304,619
Selling and general expenses	—			2,150			—			13,341			—			15,491
Other operating expense, net	—			2,375			—			1,162			—			3,537
	—			4,525			—			319,122			—			323,647
OPERATING (LOSS) INCOME	—			(4,525		)	—			67,564			—			63,039
Interest expense	(3,193		)	(243		)	(6,690		)	(2,843		)	—			(12,969		)
Interest and miscellaneous income (expense), net	2,698			814			(1,047		)	(3,480		)	—			(1,015		)
Equity in income from subsidiaries	41,921			46,478			31,110			—			(119,509		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	41,426			42,524			23,373			61,241			(119,509		)	49,055
Income tax (expense) benefit	—			(603		)	2,824			(9,933		)	—			(7,712		)
NET INCOME	41,426			41,921			26,197			51,308			(119,509		)	41,343
Less: Net loss attributable to noncontrolling interest	—			—			—			(83		)	—			(83		)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	41,426			41,921			26,197			51,391			(119,509		)	41,426
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	12,894			12,893			766			17,795			(26,545		)	17,803
New Zealand joint venture cash flow hedges	1,112			1,112			1,112			1,711			(3,336		)	1,711
Amortization of pension and postretirement plans, net of income tax	2,097			2,097			1,620			1,620			(5,337		)	2,097
Total other comprehensive income	16,103			16,102			3,498			21,126			(35,218		)	21,611
COMPREHENSIVE INCOME	57,529			58,023			29,695			72,434			(154,727		)	62,954
Less: Comprehensive income attributable to noncontrolling interest	—			—			—			5,425			—			5,425
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$	57,529		$	58,023		$	29,695		$	67,009		$	(154,727	)	$	57,529

	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 tax	—			—			—			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
Amortization of 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

Schedule of Condensed Consolidating Balance Sheets

	CONDENSED CONSOLIDATING BALANCE SHEETS As of March 31, 2014
	Rayonier Inc. (Parent Guarantor)		ROC (Subsidiary Guarantor)		Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors		Consolidating Adjustments			Total Consolidated
	(Restated)		(Restated)					(Restated)		(Restated)			(Restated)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	93,840	$	4,494	$	(178	)	$	57,915	$	—		$	156,071
Accounts receivable, less allowance for doubtful accounts	—		10		689			110,998		—			111,697
Inventory	—		—		—			141,928		—			141,928
Deferred tax assets	—		—		646			30,934		—			31,580
Prepaid and other current assets	—		6,582		3			47,992		—			54,577
Total current assets	93,840		11,086		1,160			389,767		—			495,853
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		—			2,067,549		—			2,067,549
NET PROPERTY, PLANT AND EQUIPMENT	—		2,698		—			859,271		—			861,969
INVESTMENT IN SUBSIDIARIES	1,675,347		1,851,260		1,170,755			—		(4,697,362		)	—
INTERCOMPANY NOTES RECEIVABLE	216,844		—		20,866			—		(237,710		)	—
OTHER ASSETS	3,569		32,705		3,496			177,688		—			217,458
TOTAL ASSETS	$	1,989,600	$	1,897,749	$	1,196,277		$	3,494,275	$	(4,935,072	)	$	3,642,829
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	1,054	$	2,102		$	83,126	$	—		$	86,282
Current maturities of long-term debt	—		—		112,500			1,819		—			114,319
Accrued taxes	—		14		—			11,360		—			11,374
Accrued payroll and benefits	—		8,038		—			11,223		—			19,261
Accrued interest	5,777		669		3,723			25,112		(21,424		)	13,857
Accrued customer incentives	—		—		—			10,082		—			10,082
Other current liabilities	—		9,058		—			26,812		—			35,870
Current liabilities for dispositions and discontinued operations	—		—		—			6,446		—			6,446
Total current liabilities	5,777		18,833		118,325			175,980		(21,424		)	297,491
LONG-TERM DEBT	325,000		—		768,228			300,659		—			1,393,887
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		—			67,456		—			67,456
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		91,807		—			3,291		—			95,098
OTHER NON-CURRENT LIABILITIES	—		13,763		—			17,491		—			31,254
INTERCOMPANY PAYABLE	—		97,999		—			151,938		(249,937		)	—
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,658,823		1,675,347		309,724			2,678,640		(4,663,711		)	1,658,823
Noncontrolling interest	—		—		—			98,820		—			98,820
TOTAL SHAREHOLDERS’ EQUITY	1,658,823		1,675,347		309,724			2,777,460		(4,663,711		)	1,757,643
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,989,600	$	1,897,749	$	1,196,277		$	3,494,275	$	(4,935,072	)	$	3,642,829

	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
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 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
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	—		8,765		—		26,109		—			34,874
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 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

Schedule of Condensed Consolidating Statements of Cash Flows

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2014
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	25,931		$	32,794		$	—		$	67,759		$	(27,210	)	$	99,274
INVESTING ACTIVITIES
Capital expenditures	—			(170		)	—			(36,585		)	—			(36,755		)
Purchase of timberlands	—			—			—			(10,637		)	—			(10,637		)
Change in restricted cash	—			—			—			45,312			—			45,312
Investment in Subsidiaries	—			—			69,103			—			(69,103		)	—
Other	—			—			—			1,592			—			1,592
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	—			(170		)	69,103			(318		)	(69,103		)	(488		)
FINANCING ACTIVITIES
Issuance of debt	—			—			30,000			1,819			—			31,819
Repayment of debt	—			—			(110,000		)	—			—			(110,000		)
Dividends paid	(62,545		)	—			—			—			—			(62,545		)
Proceeds from the issuance of common shares	2,027			—			—			—			—			2,027
Excess tax deficiencies on stock-based compensation	—			—			—			(1,240		)	—			(1,240		)
Repurchase of common shares	(1,754		)	—			—			—			—			(1,754		)
Intercompany distributions	—			(28,434		)	—			(67,879		)	96,313			—
Other	—			—			—			(679		)	—			(679		)
CASH USED FOR FINANCING ACTIVITIES	(62,272		)	(28,434		)	(80,000		)	(67,979		)	96,313			(142,372		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			—			13			—			13
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(36,341		)	4,190			(10,897		)	(525		)	—			(43,573		)
Balance, beginning of year	130,181			304			10,719			58,440			—			199,644
Balance, end of period	$	93,840		$	4,494		$	(178	)	$	57,915		$	—		$	156,071

	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 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

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

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended March 31, 2014
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
	(Restated)			(Restated)			(Restated)			(Restated)			(Restated)
SALES	$	—		$	—		$	386,686		$	—		$	386,686
Costs and Expenses
Cost of sales	—			—			304,619			—			304,619
Selling and general expenses	—			2,150			13,341			—			15,491
Other operating expense, net	—			2,375			1,162			—			3,537
	—			4,525			319,122			—			323,647
OPERATING (LOSS) INCOME	—			(4,525		)	67,564			—			63,039
Interest expense	(3,193		)	(6,933		)	(2,843		)	—			(12,969		)
Interest and miscellaneous income (expense), net	2,698			(233		)	(3,480		)	—			(1,015		)
Equity in income from subsidiaries	41,921			51,391			—			(93,312		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	41,426			39,700			61,241			(93,312		)	49,055
Income tax benefit (expense)	—			2,221			(9,933		)	—			(7,712		)
NET INCOME	41,426			41,921			51,308			(93,312		)	41,343
Less: Net loss attributable to noncontrolling interest	—			—			(83		)	—			(83		)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	41,426			41,921			51,391			(93,312		)	41,426
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	12,894			12,892			17,795			(25,778		)	17,803
New Zealand joint venture cash flow hedges	1,112			1,112			1,711			(2,224		)	1,711
Amortization of pension and postretirement plans, net of income tax	2,097			2,097			1,620			(3,717		)	2,097
Total other comprehensive income	16,103			16,101			21,126			(31,719		)	21,611
COMPREHENSIVE INCOME	57,529			58,022			72,434			(125,031		)	62,954
Less: Comprehensive income attributable to noncontrolling interest	—			—			5,425			—			5,425
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$	57,529		$	58,022		$	67,009		$	(125,031	)	$	57,529

	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) income	(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 benefit (expense)	—			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
Amortization of 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

Schedule of Condensed Consolidating Balance Sheets

	CONDENSED CONSOLIDATING BALANCE SHEETS As of March 31, 2014
	Rayonier Inc. (Parent Issuer)		Subsidiary Guarantors		Non- guarantors		Consolidating Adjustments			Total Consolidated
	(Restated)		(Restated)		(Restated)		(Restated)			(Restated)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	93,840	$	4,316	$	57,915	$	—		$	156,071
Accounts receivable, less allowance for doubtful accounts	—		699		110,998		—			111,697
Inventory	—		—		141,928		—			141,928
Deferred tax asset	—		646		30,934		—			31,580
Prepaid and other current assets	—		6,585		47,992		—			54,577
Total current assets	93,840		12,246		389,767		—			495,853
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		2,067,549		—			2,067,549
NET PROPERTY, PLANT AND EQUIPMENT	—		2,698		859,271		—			861,969
INVESTMENT IN SUBSIDIARIES	1,675,347		2,712,291		—		(4,387,638		)	—
INTERCOMPANY NOTES RECEIVABLE	216,844		20,866		—		(237,710		)	—
OTHER ASSETS	3,569		36,201		177,688		—			217,458
TOTAL ASSETS	$	1,989,600	$	2,784,302	$	3,494,275	$	(4,625,348	)	$	3,642,829
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	3,156	$	83,126	$	—		$	86,282
Current maturities of long-term debt	—		112,500		1,819		—			114,319
Accrued taxes	—		14		11,360		—			11,374
Accrued payroll and benefits	—		8,038		11,223		—			19,261
Accrued interest	5,777		4,392		25,112		(21,424		)	13,857
Accrued customer incentives	—		—		10,082		—			10,082
Other current liabilities	—		9,058		26,812		—			35,870
Current liabilities for dispositions and discontinued operations	—		—		6,446		—			6,446
Total current liabilities	5,777		137,158		175,980		(21,424		)	297,491
LONG-TERM DEBT	325,000		768,228		300,659		—			1,393,887
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		67,456		—			67,456
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		91,807		3,291		—			95,098
OTHER NON-CURRENT LIABILITIES	—		13,763		17,491		—			31,254
INTERCOMPANY PAYABLE	—		97,999		151,938		(249,937		)	—
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,658,823		1,675,347		2,678,640		(4,353,987		)	1,658,823
Noncontrolling interest	—		—		98,820		—			98,820
TOTAL SHAREHOLDERS’ EQUITY	1,658,823		1,675,347		2,777,460		(4,353,987		)	1,757,643
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,989,600	$	2,784,302	$	3,494,275	$	(4,625,348	)	$	3,642,829

	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
Deferred tax assets	—		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
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	—		8,765		26,109		—			34,874
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 SHAREHOLDERS’ 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

Schedule of Condensed Consolidating Statements of Cash Flows

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2014
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	25,931		$	32,794		$	67,759		$	(27,210	)	$	99,274
INVESTING ACTIVITIES
Capital expenditures	—			(170		)	(36,585		)	—			(36,755		)
Purchase of timberlands	—			—			(10,637		)	—			(10,637		)
Change in restricted cash	—			—			45,312			—			45,312
Investment in Subsidiaries	—			69,103			—			(69,103		)	—
Other	—			—			1,592			—			1,592
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	—			68,933			(318		)	(69,103		)	(488		)
FINANCING ACTIVITIES
Issuance of debt	—			30,000			1,819			—			31,819
Repayment of debt	—			(110,000		)	—			—			(110,000		)
Dividends paid	(62,545		)	—			—			—			(62,545		)
Proceeds from the issuance of common shares	2,027			—			—			—			2,027
Excess tax deficiencies on stock-based compensation	—			—			(1,240		)	—			(1,240		)
Repurchase of common shares	(1,754		)	—			—			—			(1,754		)
Intercompany distributions	—			(28,434		)	(67,879		)	96,313			—
Other	—			—			(679		)	—			(679		)
CASH USED FOR FINANCING ACTIVITIES	(62,272		)	(108,434		)	(67,979		)	96,313			(142,372		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			13			—			13
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(36,341		)	(6,707		)	(525		)	—			(43,573		)
Balance, beginning of year	130,181			11,023			58,440			—			199,644
Balance, end of period	$	93,840		$	4,316		$	57,915		$	—		$	156,071

	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 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

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, 2014	Mar. 31, 2013	Dec. 31, 2013
Income Statement [Abstract]
SALES	$ 386,686	$ 393,719
Cost of sales	304,619	266,018
Selling and general expenses	15,491	16,099
Other operating (income) expense, net	3,537	(3,503)
Costs and Expenses, Total	323,647	278,614
Equity in income of New Zealand joint venture	0	258
OPERATING INCOME	63,039	115,363
Interest (expense) income	(12,969)	(7,717)
Interest and miscellaneous income (expense), net	(1,015)	57
Equity in income from subsidiaries	0	0
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	49,055	107,703
Income tax (expense) benefit	(7,712)	(4,445)
Income from continuing operations	41,343	103,258
Income from discontinued operations, net	0	44,477
NET INCOME	41,343	147,735	373,798
Less: Net loss attributable to noncontrolling interest	(83)	0
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	41,426	147,735
Foreign currency translation adjustment	17,803	975	(5,710)
New Zealand joint venture cash flow hedges	1,711	554	3,629
Amortization of pension and postretirement plans, net of income tax	2,097	4,969	61,869
Total other comprehensive income	21,611	6,498
COMPREHENSIVE INCOME	62,954	154,233
Less: Comprehensive income attributable to noncontrolling interest	5,425	0
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	57,529	154,233
Rayonier Inc. (Parent Guarantor) [Member]
Income Statement [Abstract]
SALES	0	0
Cost of sales	0	0
Selling and general expenses	0	0
Other operating (income) expense, net	0	(1,881)
Costs and Expenses, Total	0	(1,881)
Equity in income of New Zealand joint venture		0
OPERATING INCOME	0	1,881
Interest (expense) income	(3,193)	(3,275)
Interest and miscellaneous income (expense), net	2,698	2,419
Equity in income from subsidiaries	41,921	146,710
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	41,426	147,735
Income tax (expense) benefit	0	0
Income from continuing operations		147,735
Income from discontinued operations, net		0
NET INCOME	41,426	147,735
Less: Net loss attributable to noncontrolling interest	0
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	41,426
Foreign currency translation adjustment	12,894	975
New Zealand joint venture cash flow hedges	1,112	554
Amortization of pension and postretirement plans, net of income tax	2,097	4,969
Total other comprehensive income	16,103	6,498
COMPREHENSIVE INCOME	57,529	154,233
Less: Comprehensive income attributable to noncontrolling interest	0
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	57,529
Senior Exchangeable Notes due 2015 at a fixed interest rate of 4.50% [Member] | ROC (Subsidiary Guarantor) [Member]
Income Statement [Abstract]
SALES	0	0
Cost of sales	0	0
Selling and general expenses	2,150	2,401
Other operating (income) expense, net	2,375	523
Costs and Expenses, Total	4,525	2,924
Equity in income of New Zealand joint venture		0
OPERATING INCOME	(4,525)	(2,924)
Interest (expense) income	(243)	(252)
Interest and miscellaneous income (expense), net	814	529
Equity in income from subsidiaries	46,478	148,765
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	42,524	146,118
Income tax (expense) benefit	(603)	592
Income from continuing operations		146,710
Income from discontinued operations, net		0
NET INCOME	41,921	146,710
Less: Net loss attributable to noncontrolling interest	0
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	41,921
Foreign currency translation adjustment	12,893	975
New Zealand joint venture cash flow hedges	1,112	554
Amortization of pension and postretirement plans, net of income tax	2,097	4,969
Total other comprehensive income	16,102	6,498
COMPREHENSIVE INCOME	58,023	153,208
Less: Comprehensive income attributable to noncontrolling interest	0
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	58,023
Senior Exchangeable Notes due 2015 at a fixed interest rate of 4.50% [Member] | Rayonier TRS Holdings Inc. (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 of New Zealand joint venture		0
OPERATING INCOME	0	0
Interest (expense) income	(6,690)	(6,618)
Interest and miscellaneous income (expense), net	(1,047)	(751)
Equity in income from subsidiaries	31,110	123,469
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	23,373	116,100
Income tax (expense) benefit	2,824	2,690
Income from continuing operations		118,790
Income from discontinued operations, net		0
NET INCOME	26,197	118,790
Less: Net loss attributable to noncontrolling interest	0
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	26,197
Foreign currency translation adjustment	766	240
New Zealand joint venture cash flow hedges	1,112	0
Amortization of pension and postretirement plans, net of income tax	1,620	4,012
Total other comprehensive income	3,498	4,252
COMPREHENSIVE INCOME	29,695	123,042
Less: Comprehensive income attributable to noncontrolling interest	0
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	29,695
Senior Exchangeable Notes due 2015 at a fixed interest rate of 4.50% [Member] | Non-guarantors [Member]
Income Statement [Abstract]
SALES	386,686	393,719
Cost of sales	304,619	266,018
Selling and general expenses	13,341	13,698
Other operating (income) expense, net	1,162	(2,145)
Costs and Expenses, Total	319,122	277,571
Equity in income of New Zealand joint venture		258
OPERATING INCOME	67,564	116,406
Interest (expense) income	(2,843)	2,428
Interest and miscellaneous income (expense), net	(3,480)	(2,140)
Equity in income from subsidiaries	0	0
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	61,241	116,694
Income tax (expense) benefit	(9,933)	(7,727)
Income from continuing operations		108,967
Income from discontinued operations, net		44,477
NET INCOME	51,308	153,444
Less: Net loss attributable to noncontrolling interest	(83)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	51,391
Foreign currency translation adjustment	17,795	975
New Zealand joint venture cash flow hedges	1,711	554
Amortization of pension and postretirement plans, net of income tax	1,620	0
Total other comprehensive income	21,126	1,529
COMPREHENSIVE INCOME	72,434	154,973
Less: Comprehensive income attributable to noncontrolling interest	5,425
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	67,009
Senior Exchangeable Notes due 2015 at a fixed interest rate of 4.50% [Member] | Consolidation Adjustments [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 of New Zealand joint venture		0
OPERATING INCOME	0	0
Interest (expense) income	0	0
Interest and miscellaneous income (expense), net	0	0
Equity in income from subsidiaries	(119,509)	(418,944)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(119,509)	(418,944)
Income tax (expense) benefit	0	0
Income from continuing operations		(418,944)
Income from discontinued operations, net		0
NET INCOME	(119,509)	(418,944)
Less: Net loss attributable to noncontrolling interest	0
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	(119,509)
Foreign currency translation adjustment	(26,545)	(2,190)
New Zealand joint venture cash flow hedges	(3,336)	(1,108)
Amortization of pension and postretirement plans, net of income tax	(5,337)	(8,981)
Total other comprehensive income	(35,218)	(12,279)
COMPREHENSIVE INCOME	(154,727)	(431,223)
Less: Comprehensive income attributable to noncontrolling interest	0
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	(154,727)
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | ROC (Subsidiary Guarantor) [Member]
Income Statement [Abstract]
SALES	0	0
Cost of sales	0	0
Selling and general expenses	2,150	2,401
Other operating (income) expense, net	2,375	523
Costs and Expenses, Total	4,525	2,924
Equity in income of New Zealand joint venture		0
OPERATING INCOME	(4,525)	(2,924)
Interest (expense) income	(6,933)	(6,870)
Interest and miscellaneous income (expense), net	(233)	(222)
Equity in income from subsidiaries	51,391	153,444
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	39,700	143,428
Income tax (expense) benefit	2,221	3,282
Income from continuing operations		146,710
Income from discontinued operations, net		0
NET INCOME	41,921	146,710
Less: Net loss attributable to noncontrolling interest	0
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	41,921
Foreign currency translation adjustment	12,892	975
New Zealand joint venture cash flow hedges	1,112	554
Amortization of pension and postretirement plans, net of income tax	2,097	4,969
Total other comprehensive income	16,101	6,498
COMPREHENSIVE INCOME	58,022	153,208
Less: Comprehensive income attributable to noncontrolling interest	0
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	58,022
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | Non-guarantors [Member]
Income Statement [Abstract]
SALES	386,686	393,719
Cost of sales	304,619	266,018
Selling and general expenses	13,341	13,698
Other operating (income) expense, net	1,162	(2,145)
Costs and Expenses, Total	319,122	277,571
Equity in income of New Zealand joint venture		258
OPERATING INCOME	67,564	116,406
Interest (expense) income	(2,843)	2,428
Interest and miscellaneous income (expense), net	(3,480)	(2,140)
Equity in income from subsidiaries	0	0
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	61,241	116,694
Income tax (expense) benefit	(9,933)	(7,727)
Income from continuing operations		108,967
Income from discontinued operations, net		44,477
NET INCOME	51,308	153,444
Less: Net loss attributable to noncontrolling interest	(83)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	51,391
Foreign currency translation adjustment	17,795	975
New Zealand joint venture cash flow hedges	1,711	554
Amortization of pension and postretirement plans, net of income tax	1,620	0
Total other comprehensive income	21,126	1,529
COMPREHENSIVE INCOME	72,434	154,973
Less: Comprehensive income attributable to noncontrolling interest	5,425
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	67,009
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | Consolidation Adjustments [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 of New Zealand joint venture		0
OPERATING INCOME	0	0
Interest (expense) income	0	0
Interest and miscellaneous income (expense), net	0	0
Equity in income from subsidiaries	(93,312)	(300,154)
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	(93,312)	(300,154)
Income tax (expense) benefit	0	0
Income from continuing operations		(300,154)
Income from discontinued operations, net		0
NET INCOME	(93,312)	(300,154)
Less: Net loss attributable to noncontrolling interest	0
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	(93,312)
Foreign currency translation adjustment	(25,778)	(1,950)
New Zealand joint venture cash flow hedges	(2,224)	(1,108)
Amortization of pension and postretirement plans, net of income tax	(3,717)	(4,969)
Total other comprehensive income	(31,719)	(8,027)
COMPREHENSIVE INCOME	(125,031)	(308,181)
Less: Comprehensive income attributable to noncontrolling interest	0
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$ (125,031)

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GUARANTEES (Tables)

3 Months Ended

Mar. 31, 2014

Guarantees [Abstract]

Schedule of Guarantor Obligations

The Company provides financial guarantees as required by creditors, insurance programs, and various governmental agencies. As of March 31, 2014, the following financial guarantees were outstanding:

Financial Commitments	Maximum Potential Payment		Carrying Amount of Associated Liability
Standby letters of credit (a)	$	17,355	$	15,000
Guarantees (b)	2,254		43
Surety bonds (c)	5,498		1,099
Total financial commitments	$	25,107	$	16,142

(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 2014 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, 2014, 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 during 2014 and 2015 and are expected to be renewed as required.

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INCOME TAXES Provision for Income Taxes from Discontinued Operations and Unrecognized Tax Benefits Narrative (Details) (USD $)	3 Months Ended		0 Months Ended	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 02, 2013 Wood Products business [Member]	Mar. 31, 2013 Wood Products business [Member]
Operating Loss Carryforwards [Line Items]
Base consideration received			$ 80,000,000	$ 80,000,000
Description of Proceeds from Divestiture of Business			$80 million plus a working capital adjustment	$80 million plus a working capital adjustment
Discontinued Operation, Tax Effect of Discontinued Operation	0	22,273,000		22,300,000
Discontinued Operation, Tax Effect of Income (Loss) from Disposal of Discontinued Operation				$ 21,400,000

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LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS Analysis of Activity (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2013
Accrual for Environmental Loss Contingencies [Roll Forward]
Balance, beginning of period	$ 76,378	$ 81,695
Expenditures charged to liabilities	(2,498)	(8,570)
Increase to liabilities	22	3,253
Balance, end of period	73,902	76,378
Less: Current portion	(6,446)	(6,835)
Non-current portion	$ 67,456	$ 69,543

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Income Statement Location (Details) (USD $)	3 Months Ended
	Mar. 31, 2014
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
AOCI balance expected to be reclassified in next twelve months, net of tax	$ 2,700,000
Designated as Hedging Instrument [Member] | Foreign currency exchange contracts [Member] | Other comprehensive income (loss) [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Designated hedged item, gain (loss) recognized in other comprehensive income	1,487,000
Designated as Hedging Instrument [Member] | Foreign currency option contracts [Member] | Other comprehensive income (loss) [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Designated hedged item, gain (loss) recognized in other comprehensive income	725,000
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts [Member] | Other operating expense (income) [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Non-designated hedged item, gain (Ioss) recognized in income	25,000
Not Designated as Hedging Instrument [Member] | Foreign currency option contracts [Member] | Other operating expense (income) [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Non-designated hedged item, gain (Ioss) recognized in income	7,000
Not Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | Interest and other miscellaneous income [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Non-designated hedged item, gain (Ioss) recognized in income	(1,134,000)
Not Designated as Hedging Instrument [Member] | Fuel hedge contracts [Member] | Cost of sales - benefit [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Non-designated hedged item, gain (Ioss) recognized in income	$ 317,000

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EARNINGS PER COMMON SHARE Schedule of Earnings Per Share, Basic and Diluted (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Mar. 31, 2014		Mar. 31, 2013
Income amounts attributable to Rayonier Inc.
Income from continuing operations	$ 41,343		$ 103,258
Less: Loss from continuing operations attributable to noncontrolling interest	(83)		0
Income from continuing operations attributable to Rayonier Inc.	41,426		103,258
Income from discontinued operations attributable to Rayonier Inc.	0		44,477
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	$ 41,426		$ 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	1,063,538	[1]	2,115,959	[1]
Assumed conversion of warrants	645,583	[1],[2]	2,859,593	[1],[2]
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, Basic (in dollars per share)	$ 0.33		$ 0.83
Discontinued operations, Basic (in dollars per share)	$ 0.00		$ 0.36
Net Income, Basic (in dollars per share)	$ 0.33		$ 1.19
Diluted earnings per common share attributable to Rayonier Inc.:
Continuing operations, Diluted (in dollars per share)	$ 0.32		$ 0.79
Discontinued operations, Diluted (in dollars per share)	$ 0.00		$ 0.34
Net Income, Diluted (in dollars per share)	$ 0.32		$ 1.13

[1] 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 Amended Form 10-K and Note 16 — Debt of this Form 10-Q/A.

[2] 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.

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SALE OF WOOD PRODUCTS BUSINESS

3 Months Ended

Mar. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

SALE OF WOOD PRODUCTS BUSINESS

SALE OF WOOD PRODUCTS BUSINESS

On March 1, 2013, Rayonier completed the 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. 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 the three months ended March 31, 2013.

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 three months ended March 31, 2013.

The following table summarizes the operating results of the Company’s discontinued operations and the related gain for the three months ended March 31, 2013, as presented in “Income from discontinued operations, net” on the Consolidated Statements of Income and Comprehensive Income:

	Three Months Ended
	March 31, 2013
Sales	$	16,968
Income from discontinued operations, net	$	44,477

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Notional Amounts (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014		Dec. 31, 2013
Foreign currency exchange contracts [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	$ 0	[1]	$ 1,950	[1]
Foreign currency option contracts [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	0	[1]	4,000	[1]
Interest rate swaps [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	179,066	[1]	183,851	[1]
Fuel hedge contracts [Member] | Not Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Notional Amount (in thousands of barrels)	25,000	[1]	38,000	[1]
Cash Flow Hedging [Member] | Foreign currency exchange contracts [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	37,064	[1]	32,300	[1]
Cash Flow Hedging [Member] | Foreign currency option contracts [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Notional Amount	$ 37,500	[1]	$ 38,000	[1]

[1] All notional amounts are stated in thousands of dollars except fuel contracts which are denominated in thousands of barrels.

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SALE OF WOOD PRODUCTS BUSINESS (Details) (USD $)	3 Months Ended		0 Months Ended	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 02, 2013 Wood Products business [Member] lumber_mill	Mar. 31, 2013 Wood Products business [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of lumber mills sold			3
Base consideration received			$ 80,000,000	$ 80,000,000
Description and Timing of Disposal			On March 1, 2013, Rayonier completed the 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	$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				42,700,000
Operating results of discontinued operations
Sales				16,968,000
Income from discontinued operations, net	$ 0	$ 44,477,000		$ 44,477,000

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RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Tables)

3 Months Ended

Mar. 31, 2014

Accounting Changes and Error Corrections [Abstract]

Schedule of Error Corrections and Prior Period Adjustments

The following tables summarize the effect of these restatements for the period:

	Consolidated Statements of Income and Comprehensive Income for the Three Months Ended March 31, 2014
	As Previously Reported			Restatement			As Restated
Operating Income	$	65,008		$	(1,969	)	$	63,039
Income Tax Expense	(7,732		)	20			(7,712		)
Income from Continuing Operations	43,292			(1,949		)	41,343
Net Income	43,292			(1,949		)	41,343
Net Income Attributable to Rayonier Inc.	43,375			(1,949		)	41,426
Basic Earnings Per Share Attributable to Rayonier Inc.
Continuing Operations	$	0.34		(0.01		)	$	0.33
Discontinued Operations	—			—			—
Net Income	$	0.34		$	(0.01	)	$	0.33
Diluted Earnings Per Share Attributable to Rayonier Inc.
Continuing Operations	$	0.34		(0.02		)	$	0.32
Discontinued Operations	—			—			—
Net Income	$	0.34		$	(0.02	)	$	0.32

	Consolidated Balance Sheet as of March 31, 2014
	As Previously Reported		Restatement			As Restated
Prepaid and Other Current Assets	$	54,557	$	20		$	54,577
Timber and Timberlands, Net of Depletion and Amortization	2,069,518		(1,969		)	2,067,549
Retained earnings	996,573		(1,949		)	994,624

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SALE OF WOOD PRODUCTS BUSINESS (Tables)

3 Months Ended

Mar. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures

The following table summarizes the operating results of the Company’s discontinued operations and the related gain for the three months ended March 31, 2013, as presented in “Income from discontinued operations, net” on the Consolidated Statements of Income and Comprehensive Income:

	Three Months Ended
	March 31, 2013
Sales	$	16,968
Income from discontinued operations, net	$	44,477

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JOINT VENTURE INVESTMENT Business Acquisition, Pro Forma Information (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Business Combinations [Abstract]
Sales	$ 37,764
Net Loss	(734)
Sales		428,245
Net Income		$ 146,280

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RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS Narrative (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cost of sales	$ 304,619	$ 266,018
Understatement of Depletion Expense [Member]
Cost of sales	$ 2,000

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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
	(Restated)
Income from continuing operations	$	41,343		$	103,258
Less: Loss from continuing operations attributable to noncontrolling interest	(83		)	—
Income from continuing operations attributable to Rayonier Inc.	$	41,426		$	103,258
Income from discontinued operations attributable to Rayonier Inc.	$	—		$	44,477
Net income attributable to Rayonier Inc.	$	41,426		$	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	$	0.33		$	0.83
Discontinued operations	—			0.36
Net income	$	0.33		$	1.19
Diluted earnings per common share attributable to Rayonier Inc.:
Continuing operations	$	0.32		$	0.79
Discontinued operations	—			0.34
Net income	$	0.32		$	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 — Debtin the Amended Form 10-K and Note 16 — Debtof this Form 10-Q/A.

(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 — Debtin the Amended Form 10-K and Note 16 — Debtof this Form 10-Q/A.

(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.

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INCOME TAXES (Tables)

3 Months Ended

Mar. 31, 2014

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation

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,
	2014					2013
	(Restated)			(Restated)
Income tax expense at federal statutory rate	$	17		35.0	%	$	38		35.0	%
REIT income not subject to tax	(7		)	(14.2	)	(11		)	(10.1	)
Manufacturing deduction	(1		)	(2.2	)	(2		)	(2.2	)
Other	—			(0.1	)	—			0.7
Income tax expense before discrete items	9			18.5	%	25			23.4	%
Exchange of AFMC for CBPC	—			—		(19		)	(17.5	)
Other	(1		)	(2.8	)	(2		)	(1.8	)
Income tax expense as reported	$	8		15.7	%	$	4		4.1	%

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BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

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 fiscal year ended December 31, 2013, as amended by Amendment No. 1 to the Form 10-K on Form 10-K/A (the “Amended Form 10-K”), as filed with the SEC.

Reclassifications

Certain 2013 amounts have been reclassified to agree with the current year presentation.

New Accounting Standards

In March 2013, the FASB issued Accounting Standards Update (“ASU”) No. 2013-05, Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. This standard requires a parent entity to release a related foreign entity’s cumulative translation adjustment into net income only if its sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The cumulative translation adjustment should be released into net income if the transaction results in the loss of a controlling financial interest in a foreign entity or results in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date. ASU No. 2013-05 became effective first quarter 2014. The adoption of this standard did not have any impact on the consolidated financial statements.

In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The standard requires an unrecognized tax benefit to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss (“NOL”) or similar carryforward or a tax credit carryforward. If an NOL or tax credit carryforward is not available at the reporting date or tax law of the applicable jurisdiction does not require the entity to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability. ASU 2013-11 became effective first quarter of 2014. The Company has applied the standard to its income tax balances and it did not have a material impact on the Company’s financial position. See Note 5 — Income Taxes for further information.

Subsequent Events

The Company evaluated events and transactions that occurred after the balance sheet date but before financial statements were issued, and no subsequent events were identified that warranted disclosure.

Separation of Performance Fibers Business

In January 2014, the Company announced its intention to separate the Performance Fibers business from the Forest Resources and Real Estate businesses. The separation will result in two independent, publicly-traded companies by means of a tax-free spin-off to Rayonier shareholders of a newly formed company named Rayonier Advanced Materials Inc. which will contain the Performance Fibers segment of Rayonier. The separation, which is subject to a number of conditions including final Board approval, receipt of a favorable private letter ruling from the Internal Revenue Service (“IRS”) and effectiveness of a registration statement on Form 10, is expected to be completed by mid-2014.

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JOINT VENTURE INVESTMENT (Tables)

3 Months Ended

Mar. 31, 2014

Business Combinations [Abstract]

Business Acquisition, Pro Forma Information

The amounts of revenue and earnings of the New Zealand JV included in the Company’s Consolidated Statements of Income and Comprehensive Income for the first quarter 2014 are as follows:

	Three Months Ended March 31, 2014
Sales	$	37,764
Net Loss	(734		)

The following represents the pro forma Rayonier consolidated sales and net income for the three months ended March 31, 2013 as if the additional interest in the New Zealand JV had been acquired on January 1, 2012.

	Three Months Ended March 31, 2013
Sales	$	428,245
Net Income	$	146,280

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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

3 Months Ended

Mar. 31, 2014

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

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in AOCI by component for the three months ended March 31, 2014. All amounts are presented net of tax and exclude portions attributable to noncontrolling interest.

	Foreign currency translation gains		New Zealand joint venture cash flow hedges			Unrecognized components of employee benefit plans				Total
Balance as of December 31, 2013	$	36,914	$	(342	)	$	(82,711	)		$	(46,139	)
Other comprehensive income before reclassifications	12,893		1,604			—				14,497
Amounts reclassified from accumulated other comprehensive income	—		(492		)	2,097			(a)	1,605
Net other comprehensive income	12,893		1,112			2,097				16,102
Balance as of March 31, 2014	$	49,807	$	770		$	(80,614	)		$	(30,037	)

(a) This accumulated other comprehensive income component is included in the computation of net periodic pension cost. See Note 15 — Employee Benefit Plans for additional information.

The following table presents details of the amounts reclassified in their entirety from AOCI for the three months ended March 31, 2014:

Details about accumulated other comprehensive income components	Amount reclassified from accumulated other comprehensive income			Affected line item in the income statement
Realized gain on foreign currency exchange contracts	$	(872	)	Other operating (income) expense, net
Realized gain on foreign currency option contracts	(107		)	Other operating (income) expense, net
Noncontrolling interest	343			Comprehensive income (loss) attributable to noncontrolling interest
Income tax expense	144			Income tax expense
Net gain reclassified from accumulated other comprehensive income	$	(492	)

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INCOME TAXES Unrecognized Tax Benefits Narrative (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Income Tax Disclosure [Abstract]
Unrecognized tax benefit reclassified to current deferred tax assets	$ 3.9

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ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014		Mar. 31, 2013
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ (46,139)
Other comprehensive income before reclassifications	14,497
Amounts reclassified from accumulated other comprehensive income	1,605
Net other comprehensive income	16,102
Ending balance	(30,037)
Other operating (income) expense, net	3,537		(3,503)
Comprehensive income (loss) attributable to noncontrolling interest	5,425		0
Income tax expense	7,712		4,445
Foreign currency translation gains [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	36,914
Other comprehensive income before reclassifications	12,893
Amounts reclassified from accumulated other comprehensive income	0
Net other comprehensive income	12,893
Ending balance	49,807
New Zealand joint venture cash flow hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(342)
Other comprehensive income before reclassifications	1,604
Amounts reclassified from accumulated other comprehensive income	(492)
Net other comprehensive income	1,112
Ending balance	770
Unrecognized components of employee benefit plans [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(82,711)
Other comprehensive income before reclassifications	0
Amounts reclassified from accumulated other comprehensive income	2,097	[1]
Net other comprehensive income	2,097
Ending balance	(80,614)
Reclassification out of Accumulated Other Comprehensive Income [Member] | New Zealand joint venture cash flow hedges [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Amounts reclassified from accumulated other comprehensive income	(492)
Comprehensive income (loss) attributable to noncontrolling interest	343
Income tax expense	144
Reclassification out of Accumulated Other Comprehensive Income [Member] | New Zealand joint venture cash flow hedges [Member] | Foreign Currency Exchange Contract [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Other operating (income) expense, net	(872)
Reclassification out of Accumulated Other Comprehensive Income [Member] | New Zealand joint venture cash flow hedges [Member] | Foreign Currency Option [Member]
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Other operating (income) expense, net	$ (107)

[1] This accumulated other comprehensive income component is included in the computation of net periodic pension cost. See Note 15 — Employee Benefit Plans for additional information.

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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, 2014	Mar. 31, 2013	Dec. 31, 2013
Statement of Comprehensive Income [Abstract]
SALES	$ 386,686	$ 393,719
Costs and Expenses
Cost of sales	304,619	266,018
Selling and general expenses	15,491	16,099
Other operating expense (income), net (Note 18)	3,537	(3,503)
Costs and Expenses, Total	323,647	278,614
Equity in income of New Zealand joint venture	0	258
OPERATING INCOME	63,039	115,363
Interest expense	(12,969)	(7,717)
Interest and miscellaneous (expense) income, net	(1,015)	57
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	49,055	107,703
Income tax expense	(7,712)	(4,445)
INCOME FROM CONTINUING OPERATIONS	41,343	103,258
DISCONTINUED OPERATIONS, NET (Note 2)
Income from discontinued operations, net of income tax expense of $0 and $22,273	0	44,477
NET INCOME	41,343	147,735	373,798
Less: Net loss attributable to noncontrolling interest	(83)	0
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	41,426	147,735
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	17,803	975	(5,710)
New Zealand joint venture cash flow hedges, net of income tax expense of $501 and $0	1,711	554	3,629
Amortization of pension and postretirement plans, net of income tax expense of $931 and $2,204	2,097	4,969	61,869
Total other comprehensive income	21,611	6,498
COMPREHENSIVE INCOME	62,954	154,233
Less: Comprehensive income attributable to noncontrolling interest	5,425	0
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$ 57,529	$ 154,233
BASIC EARNINGS PER SHARE ATTRIBUTABLE TO RAYONIER INC.
Continuing Operations, Basic (in dollars per share)	$ 0.33	$ 0.83
Discontinued Operations, Basic (in dollars per share)	$ 0.00	$ 0.36
Net Income, Basic (in dollars per share)	$ 0.33	$ 1.19
DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO RAYONIER INC.
Continuing Operations, Diluted (in dollars per share)	$ 0.32	$ 0.79
Discontinued Operations, Diluted (in dollars per share)	$ 0.00	$ 0.34
Net Income, Diluted (in dollars per share)	$ 0.32	$ 1.13

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RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS Restatement of Consolidated Statements of Income and Comprehensive Income (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
Operating Income	$ 63,039	$ 115,363
Income tax expense	(7,712)	(4,445)
Income from Continuing Operations	41,343	103,258
NET INCOME	41,343	147,735	373,798
Net Income Attributable to Rayonier Inc.	41,426	147,735
Basic Earnings Per Share Attributable to Rayonier Inc.
Continuing Operations, Basic (in dollars per share)	$ 0.33	$ 0.83
Discontinued Operations, Basic (in dollars per share)	$ 0.00	$ 0.36
Net Income, Basic (in dollars per share)	$ 0.33	$ 1.19
Diluted Earnings Per Share Attributable to Rayonier Inc.
Continuing Operations, Diluted (in dollars per share)	$ 0.32	$ 0.79
Discontinued Operations, Diluted (in dollars per share)	$ 0.00	$ 0.34
Net Income, Diluted (in dollars per share)	$ 0.32	$ 1.13
As Previously Preported [Member]
Operating Income	65,008
Income tax expense	(7,732)
Income from Continuing Operations	43,292
NET INCOME	43,292
Net Income Attributable to Rayonier Inc.	43,375
Basic Earnings Per Share Attributable to Rayonier Inc.
Continuing Operations, Basic (in dollars per share)	$ 0.34
Discontinued Operations, Basic (in dollars per share)	$ 0.00
Net Income, Basic (in dollars per share)	$ 0.34
Diluted Earnings Per Share Attributable to Rayonier Inc.
Continuing Operations, Diluted (in dollars per share)	$ 0.34
Discontinued Operations, Diluted (in dollars per share)	$ 0.00
Net Income, Diluted (in dollars per share)	$ 0.34
Restatement [Member]
Operating Income	(1,969)
Income tax expense	20
Income from Continuing Operations	(1,949)
NET INCOME	(1,949)
Net Income Attributable to Rayonier Inc.	$ (1,949)
Basic Earnings Per Share Attributable to Rayonier Inc.
Continuing Operations, Basic (in dollars per share)	$ (0.01)
Discontinued Operations, Basic (in dollars per share)	$ 0.00
Net Income, Basic (in dollars per share)	$ (0.01)
Diluted Earnings Per Share Attributable to Rayonier Inc.
Continuing Operations, Diluted (in dollars per share)	$ (0.02)
Discontinued Operations, Diluted (in dollars per share)	$ 0.00
Net Income, Diluted (in dollars per share)	$ (0.02)

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Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
OPERATING ACTIVITIES
Net income	$ 41,343	$ 147,735
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, depletion and amortization	48,728	35,992
Non-cash cost of real estate sold	978	633
Stock-based incentive compensation expense	3,103	3,280
Deferred income taxes	5,596	1,832
Tax benefit of AFMC for CBPC exchange	0	(18,761)
Amortization of losses from pension and postretirement plans	3,028	6,279
Gain on sale of discontinued operations, net	0	(42,670)
Gain on foreign currency forward contracts	0	(1,881)
Other	(287)	(4,656)
Changes in operating assets and liabilities:
Receivables	(15,950)	(8,778)
Inventories	(950)	11,197
Accounts payable	13,929	15,386
Income tax receivable/payable	1,319	15,915
All other operating activities	935	99
Payment to exchange AFMC for CBPC	0	(70,311)
Expenditures for dispositions and discontinued operations	(2,498)	(1,631)
CASH PROVIDED BY OPERATING ACTIVITIES	99,274	89,660
INVESTING ACTIVITIES
Capital expenditures	(36,755)	(32,664)
Purchase of timberlands	(10,637)	(1,560)
Jesup mill cellulose specialties expansion (gross purchases of $0 and $57,693, net of purchases on account of $0 and $20,959)	0	(36,734)
Proceeds from disposition of Wood Products business	0	83,741
Change in restricted cash	45,312	9,908
Other	1,592	1,790
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	(488)	24,481
FINANCING ACTIVITIES
Issuance of debt	31,819	100,000
Repayment of debt	(110,000)	(170,000)
Dividends paid	(62,545)	(57,744)
Proceeds from the issuance of common shares	2,027	4,091
Excess tax (deficiencies) benefits on stock-based compensation	(1,240)	6,191
Repurchase of common shares	(1,754)	(11,241)
Other	(679)	0
CASH USED FOR FINANCING ACTIVITIES	(142,372)	(128,703)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	13	(17)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(43,573)	(14,579)
Balance, beginning of year	199,644	280,596
Balance, end of period	156,071	266,017
Cash paid during the period:
Interest	8,990	3,562
Income taxes	7,134	70,403
Non-cash investing activity:
Capital assets purchased on account	$ 17,891	$ 49,094

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SEGMENT AND GEOGRAPHICAL INFORMATION Schedule of Segment Reporting Information, by Segment (Details) (USD $)	3 Months Ended
	Mar. 31, 2014		Mar. 31, 2013		Dec. 31, 2013
Segment Reporting Information [Line Items]
ASSETS	$ 3,642,829,000				$ 3,685,501,000
SALES	386,686,000		393,719,000
OPERATING INCOME	63,039,000		115,363,000
DEPRECIATION, DEPLETION AND AMORTIZATION	48,728,000		35,992,000
Forest Resources [Member]
Segment Reporting Information [Line Items]
ASSETS	2,187,498,000				2,162,913,000
SALES	104,678,000	[1]	57,102,000	[1]
OPERATING INCOME	25,546,000		13,255,000
DEPRECIATION, DEPLETION AND AMORTIZATION	26,887,000	[2]	16,444,000	[2]
Real Estate [Member]
Segment Reporting Information [Line Items]
ASSETS	113,376,000				149,001,000
SALES	5,530,000		24,297,000
OPERATING INCOME	725,000		16,842,000
DEPRECIATION, DEPLETION AND AMORTIZATION	910,000		4,177,000
Performance Fibers [Member]
Segment Reporting Information [Line Items]
ASSETS	1,095,574,000				1,078,645,000
SALES	241,768,000		284,188,000
OPERATING INCOME	48,980,000		91,670,000
DEPRECIATION, DEPLETION AND AMORTIZATION	20,649,000		15,153,000
Other Operations [Member]
Segment Reporting Information [Line Items]
ASSETS	35,121,000				37,334,000
SALES	37,417,000		28,227,000
OPERATING INCOME	184,000		165,000
Corporate and other [Member]
Segment Reporting Information [Line Items]
ASSETS	211,260,000				257,608,000
OPERATING INCOME	(12,396,000)	[3]	(6,569,000)	[3]
DEPRECIATION, DEPLETION AND AMORTIZATION	282,000		218,000
Separation Costs	3,300,000
Intersegment Eliminations [Member]
Segment Reporting Information [Line Items]
SALES	(2,707,000)		(95,000)
New Zealand Joint Venture [Member] | Forest Resources [Member]
Segment Reporting Information [Line Items]
SALES	38,000,000
DEPRECIATION, DEPLETION AND AMORTIZATION	$ 7,000,000

[1] First quarter 2014 included $38 million in sales from the consolidation of the New Zealand JV. See Note 7 — Joint Venture Investment.

[2] 2014 included an increase of approximately $7 million in depletion expenses related to the consolidation of the New Zealand JV. See Note 7 — Joint Venture Investment.

[3] First quarter 2014 included $3.3 million of separation costs related to the planned separation of the Performance Fibers business from the Forest Resources and Real Estate businesses.

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

3 Months Ended

Mar. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following table demonstrates the impact of the Company’s derivatives on the Consolidated Statements of Income and Comprehensive Income for the three months ended March 31, 2014. No derivative balances were consolidated prior to the Company’s acquisition of a controlling interest in the New Zealand JV in the second quarter of 2013.

		Three Months Ended
	Income Statement Location	March 31, 2014
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	Other comprehensive income (loss)	$	1,487
Foreign currency option contracts	Other comprehensive income (loss)	725
Derivatives not designated as hedging instruments:
Foreign currency exchange contracts	Other operating expense (income)	25
Foreign currency option contracts	Other operating expense (income)	7
Interest rate swaps	Interest and miscellaneous (expense) income, net	(1,134		)
Fuel hedge contracts	Cost of sales	317

Schedule of Notional Amounts of Outstanding Derivative Positions

The following table contains the notional amounts of the derivative financial instruments recorded in the Consolidated Balance Sheets:

	Notional Amount (a)
	March 31, 2014		December 31, 2013
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	$	37,064	$	32,300
Foreign currency option contracts	37,500		38,000
Derivatives not designated as hedging instruments:
Foreign currency exchange contracts	$	—	$	1,950
Foreign currency option contracts	—		4,000
Interest rate swaps	179,066		183,851
Fuel hedge contracts	25		38

(a) All notional amounts are stated in thousands of dollars except fuel contracts which are denominated in thousands of barrels.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table contains the fair values of the derivative financial instruments recorded in the Consolidated Balance Sheets :

	Location on Balance Sheet	Fair Value Assets (Liabilities) (a)
		March 31, 2014			December 31, 2013
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	Prepaid and other current assets	$	2,616		$	915
	Other current liabilities	(84		)	—
Foreign currency option contracts	Prepaid and other current assets	1,333			673
	Other current liabilities	(90		)	(214		)
Derivatives not designated as hedging instruments:
Foreign currency exchange contracts	Prepaid and other current assets	$	—		$	25
Foreign currency option contracts	Prepaid and other current assets	—			8
Interest rate swaps	Other non-current liabilities	(5,145		)	(4,659		)
Fuel hedge contracts	Prepaid and other current assets	—			160
	Other current liabilities	(159		)	—
Total derivative contracts:
Prepaid and other current assets		$	3,949		$	1,781
Other current liabilities		(333		)	(214		)
Other non-current liabilities		(5,145		)	(4,659		)
Total derivative liabilities		$	(5,478	)	$	(4,873	)

(a) See Note 11 — Fair Value Measurements for further information on the fair value of our derivatives including their classification within the fair value hierarchy.

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FAIR VALUE MEASUREMENTS Fair Value Measurements Methods and Assumptions (Details)	3 Months Ended
	Mar. 31, 2014
Foreign currency exchange contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements, Valuation Techniques	The fair value of foreign currency exchange contracts is determined by a mark-to-market valuation which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate.
Foreign currency option contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements, Valuation Techniques	The fair value of foreign currency option contracts is based on a mark-to-market calculation using the Black-Scholes option pricing model.
Borrowings [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements, Valuation Techniques	The fair value of fixed rate debt is based upon quoted market prices for debt with similar terms and maturities.
Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements, Valuation Techniques	The fair value of interest rate contracts is determined by discounting the expected future cash flows, for each instrument, at prevailing interest rates.
Cash, Cash Equivalents and Restricted Cash [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value Measurements, Valuation Techniques	The carrying amount is equal to fair market value

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EMPLOYEE BENEFIT PLANS

3 Months Ended

Mar. 31, 2014

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

EMPLOYEE BENEFIT PLANS

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 recorded are shown in the following tables:

	Pension						Postretirement
	Three Months Ended March 31,						Three Months Ended March 31,
	2014			2013			2014			2013
Components of Net Periodic Benefit Cost
Service cost	$	1,624		$	2,419		$	179		$	249
Interest cost	4,683			4,834			206			240
Expected return on plan assets	(6,658		)	(7,424		)	—			—
Amortization of prior service cost	292			388			4			6
Amortization of losses	2,737			5,727			129			218
Amortization of negative plan amendment	—			—			(134		)	—
Net periodic benefit cost	$	2,678		$	5,944		$	384		$	713

In 2014, the Company has no mandatory pension contribution requirements, but may make discretionary contributions.

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FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring Basis

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, 2014 and December 31, 2013, using market information and what management believes to be appropriate valuation methodologies under generally accepted accounting principles:

	March 31, 2014								December 31, 2013
Asset (liability)	Carrying Amount			Fair Value					Carrying Amount			Fair Value
				Level 1		Level 2						Level 1		Level 2
Cash and cash equivalents	$	156,071		$	156,071	$	—		$	199,644		$	199,644	$	—
Restricted cash (a)	23,633			23,633		—			68,944			68,944		—
Current maturities of long-term debt	(114,319		)	—		(122,187		)	(112,500		)	—		(119,614		)
Long-term debt	(1,393,887		)	—		(1,451,984		)	(1,461,724		)	—		(1,489,810		)
Interest rate swaps (b)	(5,145		)	—		(5,145		)	(4,659		)	—		(4,659		)
Foreign currency exchange contracts (b)	2,532			—		2,532			940			—		940
Foreign currency option contracts (b)	1,243			—		1,243			467			—		467
Fuel contracts (b)	(159		)	—		(159		)	160			—		160

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

(b) See Note 10 — Derivative Financial Instruments and Hedging Activities for information regarding the Balance Sheet classification of the Company’s derivative financial instruments.

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ACCUMULATED OTHER COMPREHENSIVE LOSS

3 Months Ended

Mar. 31, 2014

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

ACCUMULATED OTHER COMPREHENSIVE LOSS

ACCUMULATED OTHER COMPREHENSIVE LOSS

The following table summarizes the changes in AOCI by component for the three months ended March 31, 2014. All amounts are presented net of tax and exclude portions attributable to noncontrolling interest.

	Foreign currency translation gains		New Zealand joint venture cash flow hedges			Unrecognized components of employee benefit plans				Total
Balance as of December 31, 2013	$	36,914	$	(342	)	$	(82,711	)		$	(46,139	)
Other comprehensive income before reclassifications	12,893		1,604			—				14,497
Amounts reclassified from accumulated other comprehensive income	—		(492		)	2,097			(a)	1,605
Net other comprehensive income	12,893		1,112			2,097				16,102
Balance as of March 31, 2014	$	49,807	$	770		$	(80,614	)		$	(30,037	)

(a) This accumulated other comprehensive income component is included in the computation of net periodic pension cost. See Note 15 — Employee Benefit Plans for additional information.

The following table presents details of the amounts reclassified in their entirety from AOCI for the three months ended March 31, 2014:

Details about accumulated other comprehensive income components	Amount reclassified from accumulated other comprehensive income			Affected line item in the income statement
Realized gain on foreign currency exchange contracts	$	(872	)	Other operating (income) expense, net
Realized gain on foreign currency option contracts	(107		)	Other operating (income) expense, net
Noncontrolling interest	343			Comprehensive income (loss) attributable to noncontrolling interest
Income tax expense	144			Income tax expense
Net gain reclassified from accumulated other comprehensive income	$	(492	)

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LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS Narrative (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Mar. 31, 2014
Liabilities of Disposal Group, Including Discontinued Operation [Abstract]
Environmental Applicability, Impact and Conclusion Disclosures	These prior dispositions and discontinued operations are exposed to the risk of reasonably possible additional losses in excess of the established liabilities. As of March 31, 2014, this amount could range up to $30 million, attributable to several of the applicable sites, and arises from uncertainty over the availability, feasibility and effectiveness of certain remediation technologies, additional or different contamination that may be discovered, development of new or more effective environmental remediation technologies, potential changes in applicable law and regulations, 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	$ 30
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.

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Consolidated Statements of Cash Flows (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Statement of Cash Flows [Abstract]
Jesup mill cellulose specialties expansion, gross purchases	$ 0	$ (57,693)
Jesup mill cellulose specialties expansion, purchases on account	$ 0	$ (20,959)

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Consolidated Statements of Income and Comprehensive Income (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Statement of Comprehensive Income [Abstract]
Income from discontinued operations, income tax expense	$ 0	$ 22,273
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax	501	0
Amortization of pension and postretirement plans, income tax expense	$ 931	$ 2,204

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

3 Months Ended

Mar. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

The Company is exposed to market risk related to potential fluctuations in foreign currency exchange rates, interest rates and fuel prices. The Company’s New Zealand JV uses derivative financial instruments to mitigate the financial impact of exposure to these risks.

Accounting for derivative financial instruments is governed by Accounting Standards Codification Topic 815, Derivatives and Hedging, (“ASC 815”). In accordance with ASC 815, the Company records its derivative instruments at fair value as either assets or liabilities in the Consolidated Balance Sheets. Changes in the instruments’ fair value are accounted for based on their intended use. Gains and losses on derivatives that are designated and qualify for cash flow hedge accounting are recorded as a component of accumulated other comprehensive income (“AOCI”) and reclassified into earnings when the hedged transaction materializes. The ineffective portion of any hedge as well as changes in the fair value of derivatives not designated as hedging instruments and those which are no longer effective as hedging instruments, are recognized immediately in earnings.

Foreign Currency Exchange and Option Contracts

The functional currency of the New Zealand JV is the New Zealand dollar. These operations are exposed to foreign currency risk on export sales and ocean freight payments which are predominately denominated in US dollars. The New Zealand JV typically hedges at least 70 percent of its estimated foreign currency exposure with respect to the following three months forecasted sales and purchases and 50 percent of the forward twelve months.

The fair value of foreign currency exchange contracts is determined by a mark-to-market valuation which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate. The fair value of foreign currency option contracts is based on a mark-to-market calculation using the Black Scholes option pricing model.

Interest Rate Swaps

The Company uses interest rate swaps to manage the New Zealand JV’s exposure to interest rate movements on its variable rate debt attributable to changes in the New Zealand Bank bill rate. By converting a portion of these borrowings from floating rates to fixed rates the Company has reduced the impact of interest rate changes on its expected future cash outflows. As of March 31, 2014, the Company’s interest rate contracts hedged 88 percent of the New Zealand JV’s variable rate debt and had maturity dates through January 2020.

Fuel Hedge Contracts

The Company uses fuel swap contracts to manage its New Zealand JV’s exposure to changes in New Zealand’s domestic diesel prices. The fuel swaps are quoted by domestic banks in New Zealand dollar price terms. As of March 31, 2014 all of the contracts had maturities of less than one year. The fair value of the fuel swap contracts is determined by a mark-to-market valuation which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract.

The following table demonstrates the impact of the Company’s derivatives on the Consolidated Statements of Income and Comprehensive Income for the three months ended March 31, 2014. No derivative balances were consolidated prior to the Company’s acquisition of a controlling interest in the New Zealand JV in the second quarter of 2013.

		Three Months Ended
	Income Statement Location	March 31, 2014
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	Other comprehensive income (loss)	$	1,487
Foreign currency option contracts	Other comprehensive income (loss)	725
Derivatives not designated as hedging instruments:
Foreign currency exchange contracts	Other operating expense (income)	25
Foreign currency option contracts	Other operating expense (income)	7
Interest rate swaps	Interest and miscellaneous (expense) income, net	(1,134		)
Fuel hedge contracts	Cost of sales	317

During the next 12 months, the amount of the March 31, 2014 AOCI balance, net of tax, expected to be reclassified into earnings as a result of the maturation of the Company’s derivative instruments is a gain of approximately $2.7 million.

The following table contains the notional amounts of the derivative financial instruments recorded in the Consolidated Balance Sheets:

	Notional Amount (a)
	March 31, 2014		December 31, 2013
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	$	37,064	$	32,300
Foreign currency option contracts	37,500		38,000
Derivatives not designated as hedging instruments:
Foreign currency exchange contracts	$	—	$	1,950
Foreign currency option contracts	—		4,000
Interest rate swaps	179,066		183,851
Fuel hedge contracts	25		38

(a) All notional amounts are stated in thousands of dollars except fuel contracts which are denominated in thousands of barrels.

The following table contains the fair values of the derivative financial instruments recorded in the Consolidated Balance Sheets :

	Location on Balance Sheet	Fair Value Assets (Liabilities) (a)
		March 31, 2014			December 31, 2013
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	Prepaid and other current assets	$	2,616		$	915
	Other current liabilities	(84		)	—
Foreign currency option contracts	Prepaid and other current assets	1,333			673
	Other current liabilities	(90		)	(214		)
Derivatives not designated as hedging instruments:
Foreign currency exchange contracts	Prepaid and other current assets	$	—		$	25
Foreign currency option contracts	Prepaid and other current assets	—			8
Interest rate swaps	Other non-current liabilities	(5,145		)	(4,659		)
Fuel hedge contracts	Prepaid and other current assets	—			160
	Other current liabilities	(159		)	—
Total derivative contracts:
Prepaid and other current assets		$	3,949		$	1,781
Other current liabilities		(333		)	(214		)
Other non-current liabilities		(5,145		)	(4,659		)
Total derivative liabilities		$	(5,478	)	$	(4,873	)

(a) See Note 11 — Fair Value Measurements for further information on the fair value of our derivatives including their classification within the fair value hierarchy.

Offsetting Derivatives

Derivative financial instruments are presented at their gross fair values in the Consolidated Balance Sheets. The Company’s derivative financial instruments are not subject to master netting arrangements which would allow the right of offset.

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Document and Entity Information Document	3 Months Ended
	Mar. 31, 2014	Nov. 03, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	RAYONIER INC.
Trading Symbol	RYN
Entity Central Index Key	0000052827
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q/A
Document Period End Date	Mar. 31, 2014
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q1
Amendment Flag	true
Entity Common Stock, Shares Outstanding		126,726,146
Amendment Description	This Amendment No. 1 (this “Amendment”) to the Quarterly Report on Form 10-Q of Rayonier Inc. (the “Company”) for the quarterly period ended March 31, 2014 is being filed to amend and restate in their entirety the following items of its Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2014 that was filed on April 30, 2014 (the “Original Filing”): (i) Item 1 of Part I, “Financial Information,” (ii) Item 2 of Part I, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and (iii) Item 4 of Part I, “Controls and Procedures”. The Company has also updated the signature page, the certifications of its chief executive officer and chief financial officer in Exhibits 31.1, 31.2 and 32 and its unaudited consolidated financial statements formatted in Extensible Business Reporting Language (XBRL) in Exhibit 101. Concurrently with the filing of this Amendment, the Company is also filing Amendment No. 1 to its Annual Report on Form 10-K for the fiscal year ended December 31, 2013, Amendment No. 1 to its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2014 and Amendment No. 1 to its Form 8-K filed with the Securities and Exchange Commission on July 3, 2014. On June 27, 2014, the Company spun off its Performance Fibers business to its shareholders as a newly formed publicly traded company named Rayonier Advanced Materials Inc. Following the spin-off, new management conducted a review of the Company’s operations and business strategies and identified issues related to its historical timber harvest levels, its estimate of merchantable timber inventory and the effect of such estimate on its calculation of depletion expense in each of the quarterly periods ended March 31, 2014 and June 30, 2014. At the direction of the Company’s Board of Directors, management commenced an internal review into these matters with the assistance of independent counsel, forensic accountants and financial advisers. As a result of the internal review, the Company concluded that it included in merchantable timber inventory for 2014, timber in specially designated parcels located in restricted, environmentally sensitive or economically inaccessible areas, which was incorrect, inconsistent with its definition of merchantable timber inventory, and a significant change from prior years. As a result, the Company concluded that it understated its depletion expense in cost of goods sold (referred to as “Cost of sales” in the Company's consolidated statements of income) by approximately $2.0 million in each of the quarterly periods ended March 31, 2014 and June 30, 2014, which resulted in a corresponding overstatement of income from continuing operations of $1.9 million and $2.0 million, respectively, in those periods. In addition, management determined that there was a material weakness in the Company’s internal controls related to merchantable timber inventory, as discussed in Part I, Item 4 of this Amendment. Accordingly, the Company has filed this Amendment and the restated interim consolidated financial statements contained herein. Further details of the errors and the impact on the unaudited financial statements set forth in the Original Filing are contained in Note 3 — Restatement of Previously Issued Consolidated Financial Statements in the Notes to the Unaudited Consolidated Financial Statements included in this Amendment. The Company has not modified or updated disclosures presented in the Original Filing, except to reflect the effects of the restatement of the Company’s financial statements and disclose the material weaknesses in our internal control over financial reporting that has been identified since the date of the Annual Report on Form 10-K, as described above. Accordingly, this Amendment does not reflect events occurring after the Original Filing, except as noted above, and this Amendment continues to speak as of the date of the Original Filing. Therefore, this Amendment should be read in conjunction with the Company’s other filings made with the Securities and Exchange Commission subsequent to the filing of the Original Filing, including any amendments to those filings.

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FAIR VALUE MEASUREMENTS

3 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

Fair Value of Financial Instruments

The Accounting Standards Codification established a three-level hierarchy that prioritizes the inputs used to measure fair value 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.

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, 2014 and December 31, 2013, using market information and what management believes to be appropriate valuation methodologies under generally accepted accounting principles:

	March 31, 2014								December 31, 2013
Asset (liability)	Carrying Amount			Fair Value					Carrying Amount			Fair Value
				Level 1		Level 2						Level 1		Level 2
Cash and cash equivalents	$	156,071		$	156,071	$	—		$	199,644		$	199,644	$	—
Restricted cash (a)	23,633			23,633		—			68,944			68,944		—
Current maturities of long-term debt	(114,319		)	—		(122,187		)	(112,500		)	—		(119,614		)
Long-term debt	(1,393,887		)	—		(1,451,984		)	(1,461,724		)	—		(1,489,810		)
Interest rate swaps (b)	(5,145		)	—		(5,145		)	(4,659		)	—		(4,659		)
Foreign currency exchange contracts (b)	2,532			—		2,532			940			—		940
Foreign currency option contracts (b)	1,243			—		1,243			467			—		467
Fuel contracts (b)	(159		)	—		(159		)	160			—		160

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

(b) See Note 10 — Derivative Financial Instruments and Hedging Activities for information regarding the Balance Sheet classification of the Company’s derivative financial instruments.

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. The variable rate debt adjusts with changes in the market rate, therefore the carrying value approximates fair value.

Interest rate swap agreements — The fair value of interest rate contracts is determined by discounting the expected future cash flows, for each instrument, at prevailing interest rates.

Foreign currency exchange contracts — The fair value of foreign currency exchange contracts is determined by a mark-to-market valuation which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate.

Foreign currency option contracts— The fair value of foreign currency option contracts is based on a mark-to-market calculation using the Black-Scholes option pricing model.

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Consolidated Balance Sheets (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
CURRENT ASSETS
Cash and cash equivalents	$ 156,071	$ 199,644
Accounts receivable, less allowance for doubtful accounts of $777 and $673	111,697	94,956
Inventory
Finished goods	124,075	115,270
Work in progress	2,533	3,555
Raw materials	12,943	17,661
Manufacturing and maintenance supplies	2,377	2,332
Total inventory	141,928	138,818
Deferred tax assets	31,580	39,100
Prepaid and other current assets	54,577	46,576
Total current assets	495,853	519,094
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	2,067,549	2,049,378
PROPERTY, PLANT AND EQUIPMENT
Land	20,620	20,138
Buildings	188,913	180,573
Machinery and equipment	1,756,924	1,760,641
Construction in progress	32,560	19,795
Total property, plant and equipment, gross	1,999,017	1,981,147
Less — accumulated depreciation	(1,137,048)	(1,120,326)
Total property, plant and equipment, net	861,969	860,821
OTHER ASSETS	217,458	256,208
TOTAL ASSETS	3,642,829	3,685,501
CURRENT LIABILITIES
Accounts payable	86,282	69,293
Current maturities of long-term debt	114,319	112,500
Accrued taxes	11,374	8,551
Accrued payroll and benefits	19,261	24,948
Accrued interest	13,857	9,531
Accrued customer incentives	10,082	9,580
Other current liabilities	35,870	34,874
Current liabilities for dispositions and discontinued operations (Note 13)	6,446	6,835
Total current liabilities	297,491	276,112
LONG-TERM DEBT	1,393,887	1,461,724
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS (Note 13)	67,456	69,543
PENSION AND OTHER POSTRETIREMENT BENEFITS (Note 15)	95,098	95,654
OTHER NON-CURRENT LIABILITIES	31,254	27,225
COMMITMENTS AND CONTINGENCIES (Notes 12 and 14)
SHAREHOLDERS’ EQUITY
Common Shares, 480,000,000 shares authorized, 126,451,505 and 126,257,870 shares issued and outstanding	694,236	692,100
Retained earnings	994,624	1,015,209
Accumulated other comprehensive loss	(30,037)	(46,139)
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,658,823	1,661,170
Noncontrolling interest	98,820	94,073
TOTAL SHAREHOLDERS’ EQUITY	1,757,643	1,755,243
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 3,642,829	$ 3,685,501

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INCOME TAXES

3 Months Ended

Mar. 31, 2014

Income Tax Disclosure [Abstract]

INCOME TAXES

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, and foreign activities, are subject to corporate income taxes. Accordingly, the provision for corporate income taxes relates principally to current and deferred taxes on taxable REIT subsidiaries’ income and foreign operations.

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 original 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, resulting in a $19 million tax benefit.

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 the prior year period was lower than 2014 primarily due to recording the above referenced AFMC exchange. Excluding the AFMC for CBPC exchange, the effective tax rate decreased in the first quarter 2014 compared to the prior year period principally due to proportionately higher earnings from REIT operations.

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,
	2014					2013
	(Restated)			(Restated)
Income tax expense at federal statutory rate	$	17		35.0	%	$	38		35.0	%
REIT income not subject to tax	(7		)	(14.2	)	(11		)	(10.1	)
Manufacturing deduction	(1		)	(2.2	)	(2		)	(2.2	)
Other	—			(0.1	)	—			0.7
Income tax expense before discrete items	9			18.5	%	25			23.4	%
Exchange of AFMC for CBPC	—			—		(19		)	(17.5	)
Other	(1		)	(2.8	)	(2		)	(1.8	)
Income tax expense as reported	$	8		15.7	%	$	4		4.1	%

Provision for Income Taxes from Discontinued Operations

In first quarter 2013, 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, income tax expense related to discontinued operations was $22.3 million ($21.4 million from the gain on sale). See Note 2 — Sale of Wood Products Business for additional information.

Unrecognized Tax Benefits

During the first quarter of 2013, the Company implemented ASU 2013-11, which requires, in certain instances, an unrecognized tax benefit (or portion of an unrecognized tax benefit) to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss or a tax credit carryforward. As a result, the Company reclassified $3.9 million from an unrecognized tax benefit liability to a reduction to current deferred tax assets at March 31, 2014.

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EARNINGS PER COMMON SHARE

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

EARNINGS PER COMMON SHARE

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,
	2014			2013
	(Restated)
Income from continuing operations	$	41,343		$	103,258
Less: Loss from continuing operations attributable to noncontrolling interest	(83		)	—
Income from continuing operations attributable to Rayonier Inc.	$	41,426		$	103,258
Income from discontinued operations attributable to Rayonier Inc.	$	—		$	44,477
Net income attributable to Rayonier Inc.	$	41,426		$	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	$	0.33		$	0.83
Discontinued operations	—			0.36
Net income	$	0.33		$	1.19
Diluted earnings per common share attributable to Rayonier Inc.:
Continuing operations	$	0.32		$	0.79
Discontinued operations	—			0.34
Net income	$	0.32		$	1.13

	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 — Debtin the Amended Form 10-K and Note 16 — Debtof this Form 10-Q/A.

(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.

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DEBT

3 Months Ended

Mar. 31, 2014

Debt Disclosure [Abstract]

DEBT

DEBT

As of December 31, 2013, the 2015 Notes became exchangeable at the option of the holders for the calendar quarter ended March 31, 2014. According to 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, 2014, 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, 2014, these notes again became exchangeable at the option of the holder for the calendar quarter ending June 30, 2014. The entire balance of the notes is classified as long-term debt at March 31, 2014 due to the ability and intent of the Company to refinance them on a long-term basis.

During the three months ended March 31, 2014, the Company made net repayments of $80 million on its unsecured revolving credit facility. The Company had $323 million of available borrowings under this facility at March 31, 2014, net of $2 million to secure its outstanding letters of credit. During the three months ended March 31, 2014, the New Zealand JV borrowed $1.8 million on its working capital facility. Additional draws totaling $18.1 million remain available on the facility.

There were no other significant changes to the Company’s outstanding debt as reported in Note 13 — Debt in the Company’s Amended Form 10-K.

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GUARANTEES

3 Months Ended

Mar. 31, 2014

Guarantees [Abstract]

GUARANTEES

GUARANTEES

The Company provides financial guarantees as required by creditors, insurance programs, and various governmental agencies. As of March 31, 2014, the following financial guarantees were outstanding:

Financial Commitments	Maximum Potential Payment		Carrying Amount of Associated Liability
Standby letters of credit (a)	$	17,355	$	15,000
Guarantees (b)	2,254		43
Surety bonds (c)	5,498		1,099
Total financial commitments	$	25,107	$	16,142

(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 2014 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, 2014, 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 during 2014 and 2015 and are expected to be renewed as required.

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SHAREHOLDERS'S EQUITY

3 Months Ended

Mar. 31, 2014

Stockholders' Equity Note [Abstract]

SHAREHOLDERS'S EQUITY

SHAREHOLDERS’ EQUITY

An analysis of shareholders’ equity for the three months ended March 31, 2014 and the year ended December 31, 2013 is shown below (share amounts not in thousands):

	Rayonier Inc. Shareholders Equity
	Common Shares					Retained Earnings (Restated)			Accumulated Other Comprehensive Income/(Loss)			Non-controlling Interest			Total Shareholders’ Equity (Restated)
	Shares		Amount
Balance, December 31, 2012	123,332,444		$	670,749		$	876,634		$	(109,379	)	$	—		$	1,438,004
Net income	—		—			371,896			—			1,902			373,798
Dividends ($1.86 per share)	—		—			(233,321		)	—			—			(233,321		)
Issuance of shares under incentive stock plans	1,001,426		10,101			—			—			—			10,101
Stock-based compensation	—		11,710			—			—			—			11,710
Excess tax benefit on stock-based compensation	—		8,413			—			—			—			8,413
Repurchase of common shares	(211,221	)	(11,326		)	—			—			—			(11,326		)
Equity portion of convertible debt (Note 15)	—		2,453			—			—			—			2,453
Settlement of warrants (Note 15)	2,135,221		—			—			—			—			—
Net gain from pension and postretirement plans	—		—			—			61,869			—			61,869
Acquisition of noncontrolling interest	—		—			—			—			96,336			96,336
Noncontrolling interest redemption of shares	—		—			—			—			(713		)	(713		)
Foreign currency translation adjustment	—		—			—			(1,915		)	(3,795		)	(5,710		)
Joint venture cash flow hedges	—		—			—			3,286			343			3,629
Balance, December 31, 2013	126,257,870		$	692,100		$	1,015,209		$	(46,139	)	$	94,073		$	1,755,243
Net income (loss)	—		—			41,426			—			(83		)	41,343
Dividends ($0.49 per share)	—		—			(62,011		)	—			—			(62,011		)
Issuance of shares under incentive stock plans	235,843		2,027			—			—			—			2,027
Stock-based compensation	—		3,103			—			—			—			3,103
Excess tax deficiency on stock-based compensation	—		(1,240		)	—			—			—			(1,240		)
Repurchase of common shares	(42,208	)	(1,754		)	—			—			—			(1,754		)
Amortization of pension and postretirement plans	—		—			—			2,097			—			2,097
Noncontrolling interest redemption of shares	—		—			—			—			(679		)	(679		)
Foreign currency translation adjustment	—		—			—			12,893			4,910			17,803
Joint venture cash flow hedges	—		—			—			1,112			599			1,711
Balance, March 31, 2014	126,451,505		$	694,236		$	994,624		$	(30,037	)	$	98,820		$	1,757,643

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Narrative (Details)	Mar. 31, 2014
Derivative [Line Items]
Foreign currency exposure hedged for forecasted sales in next three months (in percent, least amount)	70.00%
Foreign currency exposure hedged for forecasted sales in next twelve months (in percent, least amount)	50.00%
Not Designated as Hedging Instrument [Member] | Senior Secured Facilities Agreement as Amended July 2013, Revolving Cash Advance Facility due 2016 [Member] | Interest Rate Swap [Member]
Derivative [Line Items]
Percent of New Zealand JV variable rate debt hedged	88.00%

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RESTRICTED DEPOSITS

3 Months Ended

Mar. 31, 2014

Restricted Cash and Investments [Abstract]

RESTRICTED DEPOSITS

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, 2014 and December 31, 2013, the Company had $23.6 million and $68.9 million, respectively, of proceeds from real estate sales classified as restricted cash in Other Assets, which were deposited with an LKE intermediary.

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JOINT VENTURE INVESTMENT

3 Months Ended

Mar. 31, 2014

Business Combinations [Abstract]

JOINT VENTURE INVESTMENT

JOINT VENTURE INVESTMENT

On April 4, 2013 (the “acquisition date”), the Company acquired an additional 39 percent ownership interest in Matariki Forestry Group, a joint venture (“New Zealand JV”) that owns or leases approximately 0.3 million acres of New Zealand timberlands. As a result of the acquisition, Rayonier is a 65 percent owner of the New Zealand JV and 100 percent of the results of its operations subsequent to April 4, 2013 have been included in the Company’s consolidated financial statements, along with 100 percent of the JV’s assets and liabilities at March 31, 2014 and December 31, 2013. The portions of the consolidated financial position and results of operations attributable to the New Zealand JV’s 35 percent noncontrolling interest are also shown separately. Rayonier New Zealand Limited (“RNZ”), a wholly-owned subsidiary of Rayonier Inc., continues to serve as the manager of the New Zealand JV forests.

Prior to the acquisition date, the Company accounted for its 26 percent interest in the New Zealand JV as an equity method investment. The additional 39 percent interest was acquired for $139.9 million and resulted in the Company obtaining a controlling financial interest in the New Zealand JV and accordingly, the purchase was accounted for as a step-acquisition. Upon consolidation, the Company recognized a $10.1 million deferred gain, which resulted from the original sale of its New Zealand operations to the joint venture in 2005 and a $6 million benefit due to the required fair market value remeasurement of the Company’s equity interest in the New Zealand JV held before the purchase of the additional interest. The acquisition-date fair value of the previous equity interest was $93.3 million.

We have applied estimates and judgments in order to determine the fair value of assets acquired and liabilities assumed at the acquisition date. In determining fair value we utilized valuation methodologies including discounted cash flow analysis. The assumptions made in performing these valuations include assumptions as to discount rates, foreign exchange rates, and commodity prices.

The Company’s operating results for the three months ended March 31, 2013 reflect 26 percent of the New Zealand JV’s income prior to the acquisition date, as reported in “Equity in income of New Zealand joint venture” in the Consolidated Statements of Income and Comprehensive Income. The amounts of revenue and earnings of the New Zealand JV included in the Company’s Consolidated Statements of Income and Comprehensive Income for the first quarter 2014 are as follows:

	Three Months Ended March 31, 2014
Sales	$	37,764
Net Loss	(734		)

The following represents the pro forma Rayonier consolidated sales and net income for the three months ended March 31, 2013 as if the additional interest in the New Zealand JV had been acquired on January 1, 2012.

	Three Months Ended March 31, 2013
Sales	$	428,245
Net Income	$	146,280

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SEGMENT AND GEOGRAPHICAL INFORMATION

3 Months Ended

Mar. 31, 2014

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

SEGMENT AND GEOGRAPHICAL INFORMATION

SEGMENT AND GEOGRAPHICAL INFORMATION

Rayonier operates in three reportable business segments: Forest Resources, Real Estate and Performance Fibers. 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 commodity grade products (primarily viscose). 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,
	2014		2013
ASSETS	(Restated)
Forest Resources	$	2,187,498	$	2,162,913
Real Estate	113,376		149,001
Performance Fibers	1,095,574		1,078,645
Other Operations	35,121		37,334
Corporate and other	211,260		257,608
Total	$	3,642,829	$	3,685,501

	Three Months Ended March 31,
SALES	2014			2013
Forest Resources (a)	$	104,678		$	57,102
Real Estate	5,530			24,297
Performance Fibers	241,768			284,188
Other Operations	37,417			28,227
Intersegment Eliminations	(2,707		)	(95		)
Total	$	386,686		$	393,719

(a) First quarter 2014 included $38 million in sales from the consolidation of the New Zealand JV. See Note 7 — Joint Venture Investment.

	Three Months Ended March 31,
	2014			2013
OPERATING INCOME	(Restated)
Forest Resources	$	25,546		$	13,255
Real Estate	725			16,842
Performance Fibers	48,980			91,670
Other Operations	184			165
Corporate and other (a)	(12,396		)	(6,569		)
Total	$	63,039		$	115,363

(a) First quarter 2014 included $3.3 million of separation costs related to the planned separation of the Performance Fibers business from the Forest Resources and Real Estate businesses.

	Three Months Ended March 31,
	2014		2013
DEPRECIATION, DEPLETION AND AMORTIZATION	(Restated)
Forest Resources (a)	26,887		$	16,444
Real Estate	910		4,177
Performance Fibers	20,649		15,153
Corporate and other	282		218
Total	$	48,728	$	35,992

(a) 2014 included an increase of approximately $7 million in depletion expenses related to the consolidation of the New Zealand JV. See Note 7 — Joint Venture Investment.

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FAIR VALUE MEASUREMENTS Fair Values Measured on Recurring Basis (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014		Dec. 31, 2013
Carrying Value [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 156,071		$ 199,644
Restricted cash	23,633	[1]	68,944	[1]
Current maturities of long-term debt	(114,319)		(112,500)
Long-term debt	(1,393,887)		(1,461,724)
Carrying Value [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps	(5,145)	[2]	(4,659)	[2]
Carrying Value [Member] | Fair Value, Measurements, Recurring [Member] | Energy Related Derivative [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fuel contracts	(159)	[2]	160	[2]
Carrying Value [Member] | Fair Value, Measurements, Recurring [Member] | Foreign currency exchange contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency option contracts	2,532	[2]	940	[2]
Carrying Value [Member] | Fair Value, Measurements, Recurring [Member] | Foreign currency option contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency option contracts	1,243	[2]	467	[2]
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	156,071		199,644
Restricted cash	23,633	[1]	68,944	[1]
Current maturities of long-term debt	0		0
Long-term debt	0		0
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps	0	[2]	0	[2]
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Energy Related Derivative [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fuel contracts	0	[2]	0	[2]
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Foreign currency exchange contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency option contracts	0	[2]	0	[2]
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Foreign currency option contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency option contracts	0	[2]	0	[2]
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0		0
Restricted cash	0	[1]	0	[1]
Current maturities of long-term debt	(122,187)		(119,614)
Long-term debt	(1,451,984)		(1,489,810)
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps	(5,145)	[2]	(4,659)	[2]
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Energy Related Derivative [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fuel contracts	(159)	[2]	160	[2]
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Foreign currency exchange contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency option contracts	2,532	[2]	940	[2]
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Foreign currency option contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency option contracts	$ 1,243	[2]	$ 467	[2]

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

[2] See Note 10 — Derivative Financial Instruments and Hedging Activities for information regarding the Balance Sheet classification of the Company’s derivative financial instruments.

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GUARANTEES (Details) (USD $)	3 Months Ended
	Mar. 31, 2014
Guarantor Obligations [Line Items]
Maximum Potential Payment	$ 25,107,000
Carrying Amount of Associated Liability	16,142,000
Standby letters of credit [Member]
Guarantor Obligations [Line Items]
Maximum Potential Payment	17,355,000	[1]
Carrying Amount of Associated Liability	15,000,000	[1]
Guarantor Obligations Collateral for Industrial Revenue Bonds	15,000,000
Guarantor Obligations, Term	various dates during 2014
Guarantees [Member]
Guarantor Obligations [Line Items]
Maximum Potential Payment	2,254,000	[2]
Carrying Amount of Associated Liability	43,000	[2]
Variable Interest Entity Recorded Liability For Performance Obligation	de minimus liability
Surety bonds [Member]
Guarantor Obligations [Line Items]
Maximum Potential Payment	5,498,000	[3]
Carrying Amount of Associated Liability	$ 1,099,000	[3]
Guarantor Obligations, Term	various dates during 2014 and 2015

[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 2014 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, 2014, 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 during 2014 and 2015 and are expected to be renewed as required.

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES Balance Sheet Location (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014		Dec. 31, 2013
Derivatives, Fair Value [Line Items]
Fair value, derivative liability	$ (5,478)	[1]	$ (4,873)	[1]
Other current liabilities [Member]
Derivatives, Fair Value [Line Items]
Fair value, derivative liability	(333)	[1]	(214)	[1]
Other non-current liabilities [Member]
Derivatives, Fair Value [Line Items]
Fair value, derivative liability	(5,145)	[1]	(4,659)	[1]
Prepaid and other current assets [Member]
Derivatives, Fair Value [Line Items]
Fair value, derivative asset	3,949	[1]	1,781	[1]
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign currency exchange contracts [Member] | Other current liabilities [Member]
Derivatives, Fair Value [Line Items]
Fair value, derivative liability	(84)	[1]	0	[1]
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign currency exchange contracts [Member] | Prepaid and other current assets [Member]
Derivatives, Fair Value [Line Items]
Fair value, derivative asset	2,616	[1]	915	[1]
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign currency option contracts [Member] | Other current liabilities [Member]
Derivatives, Fair Value [Line Items]
Fair value, derivative liability	(90)	[1]	(214)	[1]
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign currency option contracts [Member] | Prepaid and other current assets [Member]
Derivatives, Fair Value [Line Items]
Fair value, derivative asset	1,333	[1]	673	[1]
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts [Member] | Prepaid and other current assets [Member]
Derivatives, Fair Value [Line Items]
Fair value, derivative asset	0	[1]	25	[1]
Not Designated as Hedging Instrument [Member] | Foreign currency option contracts [Member] | Prepaid and other current assets [Member]
Derivatives, Fair Value [Line Items]
Fair value, derivative asset	0	[1]	8	[1]
Not Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | Other non-current liabilities [Member]
Derivatives, Fair Value [Line Items]
Fair value, derivative liability	(5,145)	[1]	(4,659)	[1]
Not Designated as Hedging Instrument [Member] | Fuel hedge contracts [Member] | Other current liabilities [Member]
Derivatives, Fair Value [Line Items]
Fair value, derivative liability	(159)	[1]	0	[1]
Not Designated as Hedging Instrument [Member] | Fuel hedge contracts [Member] | Prepaid and other current assets [Member]
Derivatives, Fair Value [Line Items]
Fair value, derivative asset	$ 0	[1]	$ 160	[1]

[1] See Note 11 — Fair Value Measurements for further information on the fair value of our derivatives including their classification within the fair value hierarchy.

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SEGMENT AND GEOGRAPHICAL INFORMATION (Tables)

3 Months Ended

Mar. 31, 2014

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

Schedule of Segment Reporting Information, by Segment

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

	March 31,		December 31,
	2014		2013
ASSETS	(Restated)
Forest Resources	$	2,187,498	$	2,162,913
Real Estate	113,376		149,001
Performance Fibers	1,095,574		1,078,645
Other Operations	35,121		37,334
Corporate and other	211,260		257,608
Total	$	3,642,829	$	3,685,501

	Three Months Ended March 31,
SALES	2014			2013
Forest Resources (a)	$	104,678		$	57,102
Real Estate	5,530			24,297
Performance Fibers	241,768			284,188
Other Operations	37,417			28,227
Intersegment Eliminations	(2,707		)	(95		)
Total	$	386,686		$	393,719

(a) First quarter 2014 included $38 million in sales from the consolidation of the New Zealand JV. See Note 7 — Joint Venture Investment.

	Three Months Ended March 31,
	2014			2013
OPERATING INCOME	(Restated)
Forest Resources	$	25,546		$	13,255
Real Estate	725			16,842
Performance Fibers	48,980			91,670
Other Operations	184			165
Corporate and other (a)	(12,396		)	(6,569		)
Total	$	63,039		$	115,363

(a) First quarter 2014 included $3.3 million of separation costs related to the planned separation of the Performance Fibers business from the Forest Resources and Real Estate businesses.

	Three Months Ended March 31,
	2014		2013
DEPRECIATION, DEPLETION AND AMORTIZATION	(Restated)
Forest Resources (a)	26,887		$	16,444
Real Estate	910		4,177
Performance Fibers	20,649		15,153
Corporate and other	282		218
Total	$	48,728	$	35,992

(a) 2014 included an increase of approximately $7 million in depletion expenses related to the consolidation of the New Zealand JV. See Note 7 — Joint Venture Investment.

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INCOME TAXES Schedule of Effective Income Tax Rate Reconciliation (Details) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Income Tax Disclosure [Abstract]
Income tax expense at federal statutory rate	$ 17,000,000	$ 38,000,000
Income tax expense at federal statutory rate (percent)	35.00%	35.00%
REIT income not subject to tax	(7,000,000)	(11,000,000)
REIT income not subject to tax (percent)	(14.20%)	(10.10%)
Manufacturing deduction	(1,000,000)	(2,000,000)
Manufacturing deduction (percent)	(2.20%)	(2.20%)
Other	0	0
Other (percent)	(0.10%)	0.70%
Income tax expense before discrete items	9,000,000	25,000,000
Income tax expense before discrete items (percent)	18.50%	23.40%
Exchange of AFMC for CBPC	0	(19,000,000)
Exchange of AFMC for CBPC (percent)	0.00%	(17.50%)
Other	(1,000,000)	(2,000,000)
Other (percent)	(2.80%)	(1.80%)
Income tax expense as reported	$ 7,712,000	$ 4,445,000
Income tax expense as reported (percent)	15.70%	4.10%

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CONTINGENCIES

3 Months Ended

Mar. 31, 2014

Loss Contingency [Abstract]

CONTINGENCIES

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.

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CONSOLIDATING FINANCIAL STATEMENTS

3 Months Ended

Mar. 31, 2014

CONSOLIDATING FINANCIAL STATEMENTS [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 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, 2014
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
	(Restated)			(Restated)						(Restated)			(Restated)			(Restated)
SALES	$	—		$	—		$	—		$	386,686		$	—		$	386,686
Costs and Expenses
Cost of sales	—			—			—			304,619			—			304,619
Selling and general expenses	—			2,150			—			13,341			—			15,491
Other operating expense, net	—			2,375			—			1,162			—			3,537
	—			4,525			—			319,122			—			323,647
OPERATING (LOSS) INCOME	—			(4,525		)	—			67,564			—			63,039
Interest expense	(3,193		)	(243		)	(6,690		)	(2,843		)	—			(12,969		)
Interest and miscellaneous income (expense), net	2,698			814			(1,047		)	(3,480		)	—			(1,015		)
Equity in income from subsidiaries	41,921			46,478			31,110			—			(119,509		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	41,426			42,524			23,373			61,241			(119,509		)	49,055
Income tax (expense) benefit	—			(603		)	2,824			(9,933		)	—			(7,712		)
NET INCOME	41,426			41,921			26,197			51,308			(119,509		)	41,343
Less: Net loss attributable to noncontrolling interest	—			—			—			(83		)	—			(83		)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	41,426			41,921			26,197			51,391			(119,509		)	41,426
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	12,894			12,893			766			17,795			(26,545		)	17,803
New Zealand joint venture cash flow hedges	1,112			1,112			1,112			1,711			(3,336		)	1,711
Amortization of pension and postretirement plans, net of income tax	2,097			2,097			1,620			1,620			(5,337		)	2,097
Total other comprehensive income	16,103			16,102			3,498			21,126			(35,218		)	21,611
COMPREHENSIVE INCOME	57,529			58,023			29,695			72,434			(154,727		)	62,954
Less: Comprehensive income attributable to noncontrolling interest	—			—			—			5,425			—			5,425
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$	57,529		$	58,023		$	29,695		$	67,009		$	(154,727	)	$	57,529

	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 tax	—			—			—			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
Amortization of 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 BALANCE SHEETS As of March 31, 2014
	Rayonier Inc. (Parent Guarantor)		ROC (Subsidiary Guarantor)		Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors		Consolidating Adjustments			Total Consolidated
	(Restated)		(Restated)					(Restated)		(Restated)			(Restated)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	93,840	$	4,494	$	(178	)	$	57,915	$	—		$	156,071
Accounts receivable, less allowance for doubtful accounts	—		10		689			110,998		—			111,697
Inventory	—		—		—			141,928		—			141,928
Deferred tax assets	—		—		646			30,934		—			31,580
Prepaid and other current assets	—		6,582		3			47,992		—			54,577
Total current assets	93,840		11,086		1,160			389,767		—			495,853
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		—			2,067,549		—			2,067,549
NET PROPERTY, PLANT AND EQUIPMENT	—		2,698		—			859,271		—			861,969
INVESTMENT IN SUBSIDIARIES	1,675,347		1,851,260		1,170,755			—		(4,697,362		)	—
INTERCOMPANY NOTES RECEIVABLE	216,844		—		20,866			—		(237,710		)	—
OTHER ASSETS	3,569		32,705		3,496			177,688		—			217,458
TOTAL ASSETS	$	1,989,600	$	1,897,749	$	1,196,277		$	3,494,275	$	(4,935,072	)	$	3,642,829
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	1,054	$	2,102		$	83,126	$	—		$	86,282
Current maturities of long-term debt	—		—		112,500			1,819		—			114,319
Accrued taxes	—		14		—			11,360		—			11,374
Accrued payroll and benefits	—		8,038		—			11,223		—			19,261
Accrued interest	5,777		669		3,723			25,112		(21,424		)	13,857
Accrued customer incentives	—		—		—			10,082		—			10,082
Other current liabilities	—		9,058		—			26,812		—			35,870
Current liabilities for dispositions and discontinued operations	—		—		—			6,446		—			6,446
Total current liabilities	5,777		18,833		118,325			175,980		(21,424		)	297,491
LONG-TERM DEBT	325,000		—		768,228			300,659		—			1,393,887
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		—			67,456		—			67,456
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		91,807		—			3,291		—			95,098
OTHER NON-CURRENT LIABILITIES	—		13,763		—			17,491		—			31,254
INTERCOMPANY PAYABLE	—		97,999		—			151,938		(249,937		)	—
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,658,823		1,675,347		309,724			2,678,640		(4,663,711		)	1,658,823
Noncontrolling interest	—		—		—			98,820		—			98,820
TOTAL SHAREHOLDERS’ EQUITY	1,658,823		1,675,347		309,724			2,777,460		(4,663,711		)	1,757,643
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,989,600	$	1,897,749	$	1,196,277		$	3,494,275	$	(4,935,072	)	$	3,642,829

	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
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 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
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	—		8,765		—		26,109		—			34,874
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 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 STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2014
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	25,931		$	32,794		$	—		$	67,759		$	(27,210	)	$	99,274
INVESTING ACTIVITIES
Capital expenditures	—			(170		)	—			(36,585		)	—			(36,755		)
Purchase of timberlands	—			—			—			(10,637		)	—			(10,637		)
Change in restricted cash	—			—			—			45,312			—			45,312
Investment in Subsidiaries	—			—			69,103			—			(69,103		)	—
Other	—			—			—			1,592			—			1,592
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	—			(170		)	69,103			(318		)	(69,103		)	(488		)
FINANCING ACTIVITIES
Issuance of debt	—			—			30,000			1,819			—			31,819
Repayment of debt	—			—			(110,000		)	—			—			(110,000		)
Dividends paid	(62,545		)	—			—			—			—			(62,545		)
Proceeds from the issuance of common shares	2,027			—			—			—			—			2,027
Excess tax deficiencies on stock-based compensation	—			—			—			(1,240		)	—			(1,240		)
Repurchase of common shares	(1,754		)	—			—			—			—			(1,754		)
Intercompany distributions	—			(28,434		)	—			(67,879		)	96,313			—
Other	—			—			—			(679		)	—			(679		)
CASH USED FOR FINANCING ACTIVITIES	(62,272		)	(28,434		)	(80,000		)	(67,979		)	96,313			(142,372		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			—			13			—			13
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(36,341		)	4,190			(10,897		)	(525		)	—			(43,573		)
Balance, beginning of year	130,181			304			10,719			58,440			—			199,644
Balance, end of period	$	93,840		$	4,494		$	(178	)	$	57,915		$	—		$	156,071

	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 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

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, 2014
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
	(Restated)			(Restated)			(Restated)			(Restated)			(Restated)
SALES	$	—		$	—		$	386,686		$	—		$	386,686
Costs and Expenses
Cost of sales	—			—			304,619			—			304,619
Selling and general expenses	—			2,150			13,341			—			15,491
Other operating expense, net	—			2,375			1,162			—			3,537
	—			4,525			319,122			—			323,647
OPERATING (LOSS) INCOME	—			(4,525		)	67,564			—			63,039
Interest expense	(3,193		)	(6,933		)	(2,843		)	—			(12,969		)
Interest and miscellaneous income (expense), net	2,698			(233		)	(3,480		)	—			(1,015		)
Equity in income from subsidiaries	41,921			51,391			—			(93,312		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	41,426			39,700			61,241			(93,312		)	49,055
Income tax benefit (expense)	—			2,221			(9,933		)	—			(7,712		)
NET INCOME	41,426			41,921			51,308			(93,312		)	41,343
Less: Net loss attributable to noncontrolling interest	—			—			(83		)	—			(83		)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	41,426			41,921			51,391			(93,312		)	41,426
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	12,894			12,892			17,795			(25,778		)	17,803
New Zealand joint venture cash flow hedges	1,112			1,112			1,711			(2,224		)	1,711
Amortization of pension and postretirement plans, net of income tax	2,097			2,097			1,620			(3,717		)	2,097
Total other comprehensive income	16,103			16,101			21,126			(31,719		)	21,611
COMPREHENSIVE INCOME	57,529			58,022			72,434			(125,031		)	62,954
Less: Comprehensive income attributable to noncontrolling interest	—			—			5,425			—			5,425
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$	57,529		$	58,022		$	67,009		$	(125,031	)	$	57,529

	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) income	(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 benefit (expense)	—			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
Amortization of 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 BALANCE SHEETS As of March 31, 2014
	Rayonier Inc. (Parent Issuer)		Subsidiary Guarantors		Non- guarantors		Consolidating Adjustments			Total Consolidated
	(Restated)		(Restated)		(Restated)		(Restated)			(Restated)
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	93,840	$	4,316	$	57,915	$	—		$	156,071
Accounts receivable, less allowance for doubtful accounts	—		699		110,998		—			111,697
Inventory	—		—		141,928		—			141,928
Deferred tax asset	—		646		30,934		—			31,580
Prepaid and other current assets	—		6,585		47,992		—			54,577
Total current assets	93,840		12,246		389,767		—			495,853
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		2,067,549		—			2,067,549
NET PROPERTY, PLANT AND EQUIPMENT	—		2,698		859,271		—			861,969
INVESTMENT IN SUBSIDIARIES	1,675,347		2,712,291		—		(4,387,638		)	—
INTERCOMPANY NOTES RECEIVABLE	216,844		20,866		—		(237,710		)	—
OTHER ASSETS	3,569		36,201		177,688		—			217,458
TOTAL ASSETS	$	1,989,600	$	2,784,302	$	3,494,275	$	(4,625,348	)	$	3,642,829
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	3,156	$	83,126	$	—		$	86,282
Current maturities of long-term debt	—		112,500		1,819		—			114,319
Accrued taxes	—		14		11,360		—			11,374
Accrued payroll and benefits	—		8,038		11,223		—			19,261
Accrued interest	5,777		4,392		25,112		(21,424		)	13,857
Accrued customer incentives	—		—		10,082		—			10,082
Other current liabilities	—		9,058		26,812		—			35,870
Current liabilities for dispositions and discontinued operations	—		—		6,446		—			6,446
Total current liabilities	5,777		137,158		175,980		(21,424		)	297,491
LONG-TERM DEBT	325,000		768,228		300,659		—			1,393,887
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		67,456		—			67,456
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		91,807		3,291		—			95,098
OTHER NON-CURRENT LIABILITIES	—		13,763		17,491		—			31,254
INTERCOMPANY PAYABLE	—		97,999		151,938		(249,937		)	—
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,658,823		1,675,347		2,678,640		(4,353,987		)	1,658,823
Noncontrolling interest	—		—		98,820		—			98,820
TOTAL SHAREHOLDERS’ EQUITY	1,658,823		1,675,347		2,777,460		(4,353,987		)	1,757,643
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,989,600	$	2,784,302	$	3,494,275	$	(4,625,348	)	$	3,642,829

	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
Deferred tax assets	—		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
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	—		8,765		26,109		—			34,874
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 SHAREHOLDERS’ 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 STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2014
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	25,931		$	32,794		$	67,759		$	(27,210	)	$	99,274
INVESTING ACTIVITIES
Capital expenditures	—			(170		)	(36,585		)	—			(36,755		)
Purchase of timberlands	—			—			(10,637		)	—			(10,637		)
Change in restricted cash	—			—			45,312			—			45,312
Investment in Subsidiaries	—			69,103			—			(69,103		)	—
Other	—			—			1,592			—			1,592
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	—			68,933			(318		)	(69,103		)	(488		)
FINANCING ACTIVITIES
Issuance of debt	—			30,000			1,819			—			31,819
Repayment of debt	—			(110,000		)	—			—			(110,000		)
Dividends paid	(62,545		)	—			—			—			(62,545		)
Proceeds from the issuance of common shares	2,027			—			—			—			2,027
Excess tax deficiencies on stock-based compensation	—			—			(1,240		)	—			(1,240		)
Repurchase of common shares	(1,754		)	—			—			—			(1,754		)
Intercompany distributions	—			(28,434		)	(67,879		)	96,313			—
Other	—			—			(679		)	—			(679		)
CASH USED FOR FINANCING ACTIVITIES	(62,272		)	(108,434		)	(67,979		)	96,313			(142,372		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			13			—			13
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(36,341		)	(6,707		)	(525		)	—			(43,573		)
Balance, beginning of year	130,181			11,023			58,440			—			199,644
Balance, end of period	$	93,840		$	4,316		$	57,915		$	—		$	156,071

	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 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

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EARNINGS PER COMMON SHARE Parenthetical (Details)	3 Months Ended
	Mar. 31, 2013 Warrants on Senior Exchangeable Notes due 2012 [Member]	Mar. 31, 2014 Warrants on Senior Exchangeable Notes due 2015 [Member]
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	2,037,303
Strike price of warrants		38.97

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OTHER OPERATING (EXPENSE) INCOME, NET (Tables)

3 Months Ended

Mar. 31, 2014

Other Operating Income, Net [Abstract]

Interest and Other Income

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

	Three Months Ended March 31,
	2014			2013
Lease income, primarily from hunting leases	$	3,036		$	2,462
Other non-timber income	552			474
Foreign currency loss	(1,490		)	(184		)
Loss on sale or disposal of property, plant & equipment	(532		)	(429		)
(Loss) gain on foreign currency exchange contracts	(32		)	1,881
Separation costs related to Rayonier Advanced Materials Inc.	(3,318		)	(86		)
Miscellaneous expense, net	(1,753		)	(615		)
Total	$	(3,537	)	$	3,503

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Consolidated Balance Sheets (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Current Assets:
Accounts receivable, allowance for doubtful accounts	$ 777	$ 673
Shareholders’ Equity:
Common stock, shares authorized	480,000,000	480,000,000
Common stock, shares issued	126,451,505	126,257,870
Common stock, shares outstanding	126,451,505	126,257,870

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RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS (Notes)

3 Months Ended

Mar. 31, 2014

Accounting Changes and Error Corrections [Abstract]

Restatement of Previously Issued Consolidated Financial Statements

RESTATEMENT OF PREVIOUSLY ISSUED CONSOLIDATED FINANCIAL STATEMENTS

Subsequent to the issuance of the Original Filing, the Company identified issues related to its historical timber harvest levels, its estimate of merchantable timber inventory and the effect of such estimate on its calculation of depletion expense in the quarterly period ended March 31, 2014. The Company determined that it had understated its depletion expense in cost of goods sold (referred to as “Cost of sales” in the Company’s consolidated statements of income and comprehensive income) by approximately $2 million for the period. As a result, the financial amounts noted below have been restated from amounts previously reported.

The following tables summarize the effect of these restatements for the period:

	Consolidated Statements of Income and Comprehensive Income for the Three Months Ended March 31, 2014
	As Previously Reported			Restatement			As Restated
Operating Income	$	65,008		$	(1,969	)	$	63,039
Income Tax Expense	(7,732		)	20			(7,712		)
Income from Continuing Operations	43,292			(1,949		)	41,343
Net Income	43,292			(1,949		)	41,343
Net Income Attributable to Rayonier Inc.	43,375			(1,949		)	41,426
Basic Earnings Per Share Attributable to Rayonier Inc.
Continuing Operations	$	0.34		(0.01		)	$	0.33
Discontinued Operations	—			—			—
Net Income	$	0.34		$	(0.01	)	$	0.33
Diluted Earnings Per Share Attributable to Rayonier Inc.
Continuing Operations	$	0.34		(0.02		)	$	0.32
Discontinued Operations	—			—			—
Net Income	$	0.34		$	(0.02	)	$	0.32

	Consolidated Balance Sheet as of March 31, 2014
	As Previously Reported		Restatement			As Restated
Prepaid and Other Current Assets	$	54,557	$	20		$	54,577
Timber and Timberlands, Net of Depletion and Amortization	2,069,518		(1,969		)	2,067,549
Retained earnings	996,573		(1,949		)	994,624

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SEGMENT AND GEOGRAPHICAL INFORMATION Narrative (Details)	3 Months Ended
	Mar. 31, 2014 segment product_line
Segment Reporting [Abstract]
Number of reportable segments	3
Number of product lines	2

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EMPLOYEE BENEFIT PLANS Narrative (Details)	3 Months Ended
	Mar. 31, 2014
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.

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BASIS OF PRESENTATION (Policies)

3 Months Ended

Mar. 31, 2014

Basis of Presentation [Line Items]

Reclassifications

Reclassifications

Certain 2013 amounts have been reclassified to agree with the current year presentation.

New Accounting Standards

New Accounting Standards

In March 2013, the FASB issued Accounting Standards Update (“ASU”) No. 2013-05, Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity. This standard requires a parent entity to release a related foreign entity’s cumulative translation adjustment into net income only if its sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The cumulative translation adjustment should be released into net income if the transaction results in the loss of a controlling financial interest in a foreign entity or results in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date. ASU No. 2013-05 became effective first quarter 2014. The adoption of this standard did not have any impact on the consolidated financial statements.

In July 2013, the FASB issued ASU No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The standard requires an unrecognized tax benefit to be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss (“NOL”) or similar carryforward or a tax credit carryforward. If an NOL or tax credit carryforward is not available at the reporting date or tax law of the applicable jurisdiction does not require the entity to use the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability. ASU 2013-11 became effective first quarter of 2014. The Company has applied the standard to its income tax balances and it did not have a material impact on the Company’s financial position. See Note 5 — Income Taxes for further information.

Equity Method Investments

The Company’s operating results for the three months ended March 31, 2013 reflect 26 percent of the New Zealand JV’s income prior to the acquisition date, as reported in “Equity in income of New Zealand joint venture” in the Consolidated Statements of Income and Comprehensive Income.

Segment Reporting

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.

Derivatives

Accounting for derivative financial instruments is governed by Accounting Standards Codification Topic 815, Derivatives and Hedging, (“ASC 815”). In accordance with ASC 815, the Company records its derivative instruments at fair value as either assets or liabilities in the Consolidated Balance Sheets. Changes in the instruments’ fair value are accounted for based on their intended use. Gains and losses on derivatives that are designated and qualify for cash flow hedge accounting are recorded as a component of accumulated other comprehensive income (“AOCI”) and reclassified into earnings when the hedged transaction materializes. The ineffective portion of any hedge as well as changes in the fair value of derivatives not designated as hedging instruments and those which are no longer effective as hedging instruments, are recognized immediately in earnings.

Derivatives, Offsetting Fair Value Amounts

Derivative financial instruments are presented at their gross fair values in the Consolidated Balance Sheets. The Company’s derivative financial instruments are not subject to master netting arrangements which would allow the right of offset.

Fair Value of Financial Instruments

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. The variable rate debt adjusts with changes in the market rate, therefore the carrying value approximates fair value.

Interest rate swap agreements — The fair value of interest rate contracts is determined by discounting the expected future cash flows, for each instrument, at prevailing interest rates.

Foreign currency exchange contracts — The fair value of foreign currency exchange contracts is determined by a mark-to-market valuation which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate.

Foreign currency option contracts— The fair value of foreign currency option contracts is based on a mark-to-market calculation using the Black-Scholes option pricing model.

Consolidation, Subsidiaries or Other Investments, Consolidated Entities

100 percent of the results of its operations subsequent to April 4, 2013 have been included in the Company’s consolidated financial statements, along with 100 percent of the JV’s assets and liabilities at March 31, 2014 and December 31, 2013. The portions of the consolidated financial position and results of operations attributable to the New Zealand JV’s 35 percent noncontrolling interest are also shown separately.

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.

Business Combinations Policy

We have applied estimates and judgments in order to determine the fair value of assets acquired and liabilities assumed at the acquisition date. In determining fair value we utilized valuation methodologies including discounted cash flow analysis. The assumptions made in performing these valuations include assumptions as to discount rates, foreign exchange rates, and commodity prices.

Foreign Currency Exchange Contract [Member]

Basis of Presentation [Line Items]

Fair Value of Financial Instruments

The fair value of foreign currency exchange contracts is determined by a mark-to-market valuation which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate. The fair value of foreign currency option contracts is based on a mark-to-market calculation using the Black Scholes option pricing model.

Commodity Contract [Member]

Basis of Presentation [Line Items]

Fair Value of Financial Instruments

The fair value of the fuel swap contracts is determined by a mark-to-market valuation which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract.

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CONSOLIDATING FINANCIAL STATEMENTS Narrative (Details) (USD $)	3 Months Ended
	Mar. 31, 2014
Senior Exchangeable Notes due 2015 at a fixed interest rate of 4.50% [Member]
Debt Instrument [Line Items]
Issuance Date	August 2009
Face Amount	$ 172,500,000
Stated interest rate	4.50%
Maturity date	2015
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member]
Debt Instrument [Line Items]
Issuance Date	March 2012
Face Amount	$ 325,000,000
Stated interest rate	3.75%
Maturity date	2022

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LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS (Tables)

3 Months Ended

Mar. 31, 2014

Liabilities of Disposal Group, Including Discontinued Operation [Abstract]

Schedule of Change in Environmental Loss Contingencies

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

	March 31,			December 31,
	2014			2013
Balance, beginning of period	$	76,378		$	81,695
Expenditures charged to liabilities	(2,498		)	(8,570		)
Increase to liabilities	22			3,253
Balance, end of period	73,902			76,378
Less: Current portion	(6,446		)	(6,835		)
Non-current portion	$	67,456		$	69,543

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LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS

3 Months Ended

Mar. 31, 2014

Liabilities of Disposal Group, Including Discontinued Operation [Abstract]

LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS

LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS

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

	March 31,			December 31,
	2014			2013
Balance, beginning of period	$	76,378		$	81,695
Expenditures charged to liabilities	(2,498		)	(8,570		)
Increase to liabilities	22			3,253
Balance, end of period	73,902			76,378
Less: Current portion	(6,446		)	(6,835		)
Non-current portion	$	67,456		$	69,543

These prior dispositions and discontinued operations are exposed to the risk of reasonably possible additional losses in excess of the established liabilities. As of March 31, 2014, this amount could range up to $30 million, attributable to several of the applicable sites, and arises from uncertainty over the availability, feasibility and effectiveness of certain remediation technologies, additional or different contamination that may be discovered, development of new or more effective environmental remediation technologies, potential changes in applicable law and regulations, and the exercise of discretion in interpretation of applicable law and regulations by governmental agencies.

Management 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.