XML 80 R11.htm IDEA: XBRL DOCUMENT v2.4.0.8
EARNINGS PER COMMON SHARE
 9 Months Ended
Sep. 30, 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 September 30,
 
Nine Months Ended September 30,
 
2014
 
2013
 
2014
 
2013
Income from continuing operations
$
32,059

 
$
15,040

 
$
46,418

 
$
73,699

Less: Net (loss) income from continuing operations attributable to noncontrolling interest
(642
)
 
1,022

 
(970
)
 
1,749

Income from continuing operations attributable to Rayonier Inc.
$
32,701

 
$
14,018

 
$
47,388

 
$
71,950

 
 
 
 
 
 
 
 
Income from discontinued operations, net, attributable to Rayonier Inc.
$
—

 
$
43,327

 
$
43,092

 
$
220,294

 
 
 
 
 
 
 
 
Net income attributable to Rayonier Inc.
$
32,701

 
$
57,345

 
$
90,480

 
$
292,244

 
 
 
 
 
 
 
 
Shares used for determining basic earnings per common share
126,501,837

 
126,122,151

 
126,428,279

 
125,549,133

Dilutive effect of:
 
 
 
 
 
 
 
Stock options
320,839

 
468,286

 
347,721

 
501,324

Performance and restricted shares
37,682

 
546,247

 
165,627

 
518,138

Assumed conversion of Senior Exchangeable Notes (a)
1,692,343

 
2,168,254

 
2,395,698

 
2,176,414

Assumed conversion of warrants (a)
1,237,812

 
1,608,466

 
2,344,335

 
2,043,965

Shares used for determining diluted earnings per common share
129,790,513

 
130,913,404

 
131,681,660

 
130,788,974

Basic earnings per common share attributable to Rayonier Inc.:
 
 
 
 
 
 
 
Continuing operations
$
0.26

 
$
0.11

 
$
0.38

 
$
0.57

Discontinued operations
—

 
0.34

 
0.34

 
1.76

Net income
$
0.26

 
$
0.45

 
$
0.72

 
$
2.33

Diluted earnings per common share attributable to Rayonier Inc.:
 
 
 
 
 
 
 
Continuing operations
$
0.25

 
$
0.11

 
$
0.36

 
$
0.55

Discontinued operations
—

 
0.33

 
0.33

 
1.68

Net income
$
0.25

 
$
0.44

 
$
0.69

 
$
2.23


 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2014
 
2013
 
2014
 
2013
Anti-dilutive shares excluded from the computations of diluted earnings per share:
 
 
 
 
 
 
 
Stock options, performance and restricted shares
374,562

 
101,884

 
485,850

 
167,487

Assumed conversion of exchangeable note hedges (a)
1,692,343

 
2,168,254

 
2,395,698

 
2,176,414

Total
2,066,905

 
2,270,138

 
2,881,548

 
2,343,901

(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 price, 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 all periods presented.
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 and 97,918 shares were issued in the first week of April 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 $28.13 per share. The exchange price on the warrants is lower than periods prior to second quarter 2014 as it has been adjusted to reflect the spin-off of the Performance Fibers business. For further information, see Note 13 — Debt in the Amended Form 10-K and Note 18 — Debt of this Form 10-Q.