CONSOLIDATING FINANCIAL STATEMENTS (Tables)

9 Months Ended

Sep. 30, 2014

Senior Exchangeable Notes due 2015 at a fixed interest rate of 4.50% [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 September 30, 2014
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	—		$	149,829		$	—		$	149,829
Costs and Expenses
Cost of sales	—			—			—			118,088			—			118,088
Selling and general expenses	—			3,488			—			5,318			—			8,806
Other operating expense (income), net	—			(854		)	—			(8,290		)	—			(9,144		)
	—			2,634			—			115,116			—			117,750
OPERATING (LOSS) INCOME	—			(2,634		)	—			34,713			—			32,079
Interest expense	(3,685		)	141			(3,122		)	(2,900		)	—			(9,566		)
Interest and miscellaneous income (expense), net	1,799			814			(260		)	(4,087		)	—			(1,734		)
Equity in income from subsidiaries	34,587			36,266			6,259			—			(77,112		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	32,701			34,587			2,877			27,726			(77,112		)	20,779
Income tax benefit	—			—			1,234			10,046			—			11,280
INCOME (LOSS) FROM CONTINUING OPERATIONS	32,701			34,587			4,111			37,772			(77,112		)	32,059
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income taxes	—			—			—			—			—			—
NET INCOME (LOSS)	32,701			34,587			4,111			37,772			(77,112		)	32,059
Less: Net loss attributable to noncontrolling interest	—			—			—			(642		)	—			(642		)
NET INCOME (LOSS) ATTRIBUTABLE TO RAYONIER INC.	32,701			34,587			4,111			38,414			(77,112		)	32,701
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment	(27,317		)	(27,318		)	(1,441		)	(37,738		)	55,937			(37,877		)
New Zealand joint venture cash flow hedges	(2,270		)	(2,271		)	(2,272		)	(3,494		)	6,813			(3,494		)
Amortization of pension and postretirement plans, net of income tax	2,265			2,265			(4,120		)	(4,120		)	5,975			2,265
Total other comprehensive loss	(27,322		)	(27,324		)	(7,833		)	(45,352		)	68,725			(39,106		)
COMPREHENSIVE INCOME (LOSS)	5,379			7,263			(3,722		)	(7,580		)	(8,387		)	(7,047		)
Less: Comprehensive loss attributable to noncontrolling interest	—			—			—			(12,295		)	(131		)	(12,426		)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO RAYONIER INC.	$	5,379		$	7,263		$	(3,722	)	$	4,715		$	(8,256	)	$	5,379

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended September 30, 2013
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	—		$	159,261		$	—		$	159,261
Costs and Expenses
Cost of sales	—			—			—			129,002			—			129,002
Selling and general expenses	—			2,276			—			10,828			—			13,104
Other operating expense (income), net	—			738			—			(4,213		)	661			(2,814		)
	—			3,014			—			135,617			661			139,292
Equity in income of New Zealand joint venture	—			—			—			—			—			—
OPERATING (LOSS) INCOME BEFORE GAIN ON CONSOLIDATION OF NEW ZEALAND JOINT VENTURE	—			(3,014		)	—			23,644			(661		)	19,969
Gain related to consolidation of New Zealand joint venture	—			—			—			—			—			—
OPERATING (LOSS) INCOME	—			(3,014		)	—			23,644			(661		)	19,969
Interest expense	(3,190		)	(162		)	(7,115		)	(356		)	—			(10,823		)
Interest and miscellaneous income (expense), net	2,538			770			(4,325		)	103			—			(914		)
Equity in income from subsidiaries	57,932			58,802			39,544			—			(156,278		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	57,280			56,396			28,104			23,391			(156,939		)	8,232
Income tax benefit	65			1,536			3,627			1,642			(62		)	6,808
INCOME FROM CONTINUING OPERATIONS	57,345			57,932			31,731			25,033			(157,001		)	15,040
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income taxes	—			—			—			43,327			—			43,327
NET INCOME	57,345			57,932			31,731			68,360			(157,001		)	58,367
Less: Net income attributable to noncontrolling interest	—			—			—			1,022			—			1,022
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	57,345			57,932			31,731			67,338			(157,001		)	57,345
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	17,887			17,887			2,084			24,259			(37,858		)	24,259
New Zealand joint venture cash flow hedges	2,233			2,231			2,231			3,434			(6,696		)	3,433
Amortization of pension and postretirement plans, net of income tax	3,639			3,639			2,747			2,747			(9,133		)	3,639
Total other comprehensive income	23,759			23,757			7,062			30,440			(53,687		)	31,331
COMPREHENSIVE INCOME	81,104			81,689			38,793			98,800			(210,688		)	89,698
Less: Comprehensive income attributable to noncontrolling interest	—			—			—			8,594			—			8,594
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$	81,104		$	81,689		$	38,793		$	90,206		$	(210,688	)	$	81,104

	CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2014
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	—		$	456,161		$	—		$	456,161
Costs and Expenses
Cost of sales	—			—			—			357,083			—			357,083
Selling and general expenses	—			8,032			—			27,872			—			35,904
Other operating expense (income), net	—			3,094			—			(24,002		)	—			(20,908		)
	—			11,126			—			360,953			—			372,079
OPERATING INCOME (LOSS)	—			(11,126		)	—			95,208			—			84,082
Interest expense	(10,074		)	(327		)	(20,794		)	(4,657		)	—			(35,852		)
Interest and miscellaneous income (expense), net	7,230			(1,375		)	(2,405		)	(10,581		)	—			(7,131		)
Equity in income (loss) from subsidiaries	93,324			106,315			(16,692		)	—			(182,947		)	—
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	90,480			93,487			(39,891		)	79,970			(182,947		)	41,099
Income tax benefit (expense)	—			(163		)	8,467			(2,985		)	—			5,319
INCOME (LOSS) FROM CONTINUING OPERATIONS	90,480			93,324			(31,424		)	76,985			(182,947		)	46,418
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income tax	—			—			—			43,092			—			43,092
NET INCOME (LOSS)	90,480			93,324			(31,424		)	120,077			(182,947		)	89,510
Less: Net loss attributable to noncontrolling interest	—			—			—			(970		)	—			(970		)
NET INCOME (LOSS) ATTRIBUTABLE TO RAYONIER INC.	90,480			93,324			(31,424		)	121,047			(182,947		)	90,480
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment	(11,770		)	(11,770		)	(162		)	(16,426		)	23,702			(16,426		)
New Zealand joint venture cash flow hedges	(1,756		)	(1,757		)	(1,758		)	(2,703		)	5,271			(2,703		)
Amortization of pension and postretirement plans, net of income tax	63,235			63,235			90,214			90,214			(243,663		)	63,235
Total other comprehensive income	49,709			49,708			88,294			71,085			(214,690		)	44,106
COMPREHENSIVE INCOME	140,189			143,032			56,870			191,163			(397,638		)	133,616
Less: Comprehensive loss attributable to noncontrolling interest	—			—			—			(6,573		)	—			(6,573		)
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$	140,189		$	143,032		$	56,870		$	197,736		$	(397,638	)	$	140,189

	CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2013
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non-guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	—		$	421,203		$	—		$	421,203
Costs and Expenses
Cost of sales	—			—			—			333,523			—			333,523
Selling and general expenses	—			7,357			—			33,847			—			41,204
Other operating (income) expense, net	(1,701		)	1,187			—			(10,073		)	—			(10,587		)
	(1,701		)	8,544			—			357,297			—			364,140
Equity in income of New Zealand joint venture	—			—			—			562			—			562
OPERATING INCOME (LOSS) BEFORE GAIN ON CONSOLIDATION OF NEW ZEALAND JOINT VENTURE	1,701			(8,544		)	—			64,468			—			57,625
Gain related to consolidation of New Zealand joint venture	—			—			—			16,098			—			16,098
OPERATING INCOME (LOSS)	1,701			(8,544		)	—			80,566			—			73,723
Interest (expense) income	(9,879		)	(680		)	(20,730		)	663			—			(30,626		)
Interest and miscellaneous income (expense), net	6,716			2,403			(5,873		)	(1,394		)	—			1,852
Equity in income from subsidiaries	293,706			298,802			198,981			—			(791,489		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	292,244			291,981			172,378			79,835			(791,489		)	44,949
Income tax benefit	—			1,725			9,164			17,861			—			28,750
INCOME FROM CONTINUING OPERATIONS	292,244			293,706			181,542			97,696			(791,489		)	73,699
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income taxes	—			—			—			220,294			—			220,294
NET INCOME	292,244			293,706			181,542			317,990			(791,489		)	293,993
Less: Net income attributable to noncontrolling interest	—			—			—			1,749			—			1,749
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	292,244			293,706			181,542			316,241			(791,489		)	292,244
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment	237			237			629			(2,967		)	(1,103		)	(2,967		)
New Zealand joint venture cash flow hedges	3,663			3,663			1,014			4,209			(8,340		)	4,209
Amortization of pension and postretirement plans, net of income tax	12,326			12,326			9,578			9,578			(31,482		)	12,326
Total other comprehensive income	16,226			16,226			11,221			10,820			(40,925		)	13,568
COMPREHENSIVE INCOME	308,470			309,932			192,763			328,810			(832,414		)	307,561
Less: Comprehensive loss attributable to noncontrolling interest	—			—			—			(909		)	—			(909		)
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$	308,470		$	309,932		$	192,763		$	329,719		$	(832,414	)	$	308,470

Schedule of Condensed Consolidating Balance Sheets

	CONDENSED CONSOLIDATING BALANCE SHEETS As of September 30, 2014
	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	$	84,283	$	3,255		$	48,233	$	47,060		$	—		$	182,831
Restricted cash	—		—			—		—			—			—
Accounts receivable, less allowance for doubtful accounts	—		—			1,359		26,878			—			28,237
Inventory	—		—			—		12,439			—			12,439
Deferred tax assets	—		—			—		4,211			—			4,211
Prepaid and other current assets	—		1,511			14		22,296			—			23,821
Total current assets	84,283		4,766			49,606		112,884			—			251,539
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—			—		2,058,381			—			2,058,381
NET PROPERTY, PLANT AND EQUIPMENT	—		483			—		6,048			—			6,531
INVESTMENT IN SUBSIDIARIES	1,522,406		1,907,075			499,062		—			(3,928,543		)	—
INTERCOMPANY NOTES RECEIVABLE	245,898		—			21,279		—			(267,177		)	—
OTHER ASSETS	2,860		17,315			1,962		138,971			—			161,108
TOTAL ASSETS	$	1,855,447	$	1,929,639		$	571,909	$	2,316,284		$	(4,195,720	)	$	2,477,559
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	1,595		$	2,052	$	19,479		$	—		$	23,126
Current maturities of long-term debt	—		—			129,199		1,287			—			130,486
Accrued taxes	—		41			—		14,913			—			14,954
Uncertain tax positions	—		—			—		—			—			—
Accrued payroll and benefits	—		3,892			—		2,446			—			6,338
Accrued interest	6,116		(3		)	1,004		29,098			(26,079		)	10,136
Other current liabilities	—		1,113			—		25,483			—			26,596
Total current liabilities	6,116		6,638			132,255		92,706			(26,079		)	211,636
LONG-TERM DEBT	325,000		—			14,999		265,163			—			605,162
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		23,078			—		(685		)	—			22,393
OTHER NON-CURRENT LIABILITIES	—		6,876			—		20,590			—			27,466
INTERCOMPANY PAYABLE	—		370,641			—		(100,759		)	(269,882		)	—
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,524,331		1,522,406			424,655		1,952,698			(3,899,759		)	1,524,331
Noncontrolling interest	—		—			—		86,571			—			86,571
TOTAL SHAREHOLDERS’ EQUITY	1,524,331		1,522,406			424,655		2,039,269			(3,899,759		)	1,610,902
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,855,447	$	1,929,639		$	571,909	$	2,316,284		$	(4,195,720	)	$	2,477,559

	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
Uncertain tax positions	—		5,780		—		4,767		—			10,547
Accrued payroll and benefits	—		11,382		—		13,566		—			24,948
Accrued interest	3,047		538		2,742		22,816		(19,612		)	9,531
Accrued customer incentives	—		—		—		9,580		—			9,580
Other current liabilities	—		2,985		—		21,342		—			24,327
Current liabilities for dispositions and discontinued operations	—		—		—		6,835		—			6,835
Total current liabilities	3,047		27,062		116,806		148,809		(19,612		)	276,112
LONG-TERM DEBT	325,000		—		847,749		288,975		—			1,461,724
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		—		69,543		—			69,543
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		91,471		—		4,183		—			95,654
OTHER NON-CURRENT LIABILITIES	—		11,493		—		15,732		—			27,225
INTERCOMPANY PAYABLE	—		118,227		—		125,921		(244,148		)	—
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,661,170		1,627,315		221,770		2,749,142		(4,598,227		)	1,661,170
Noncontrolling interest	—		—		—		94,073		—			94,073
TOTAL SHAREHOLDERS’ EQUITY	1,661,170		1,627,315		221,770		2,843,215		(4,598,227		)	1,755,243
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,989,217	$	1,875,568	$	1,186,325	$	3,496,378	$	(4,861,987	)	$	3,685,501

Schedule of Condensed Consolidating Statements of Cash Flows

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 2014
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	219,988		$	238,010		$	—		$	54,461		$	(231,730	)	$	280,729
INVESTING ACTIVITIES
Capital expenditures	—			(400		)	—			(105,258		)	—			(105,658		)
Purchase of timberlands	—			—			—			(93,189		)	—			(93,189		)
Change in restricted cash	—			—			—			47,318			—			47,318
Investment in Subsidiaries	—			—			855,014			—			(855,014		)	—
Other	—			—			—			(478		)	—			(478		)
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	—			(400		)	855,014			(151,607		)	(855,014		)	(152,007		)
FINANCING ACTIVITIES
Issuance of debt	—			—			185,000			1,110,163			—			1,295,163
Repayment of debt	—			—			(1,002,500		)	(170,549		)	—			(1,173,049		)
Dividends paid	(225,877		)	—			—			—			—			(225,877		)
Proceeds from the issuance of common shares	4,645			—			—			—			—			4,645
Debt issuance costs	—			—			—			(12,380		)	—			(12,380		)
Repurchase of common shares	(1,834		)	—			—			—			—			(1,834		)
Purchase of timberland deeds for Rayonier Advanced Materials	(12,677		)	—			—			—			—			(12,677		)
Debt issuance funds distributed to Rayonier Advanced Materials	(924,943		)	—			—			—			—			(924,943		)
Proceeds from spin-off of Rayonier Advanced Materials	906,200			—			—			—			—			906,200
Change in restricted cash reserved for dividends	—			—			—			—			—			—
Issuance of intercompany notes	(11,400		)	—			—			11,400			—			—
Intercompany distributions	—			(234,659		)	—			(852,085		)	1,086,744			—
Other	—			—			—			(680		)	—			(680		)
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES	(265,886		)	(234,659		)	(817,500		)	85,869			1,086,744			(145,432		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			—			(103		)	—			(103		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(45,898		)	2,951			37,514			(11,380		)	—			(16,813		)
Balance, beginning of year	130,181			304			10,719			58,440			—			199,644
Balance, end of period	$	84,283		$	3,255		$	48,233		$	47,060		$	—		$	182,831

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 2013
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	389,405		$	394,700		$	84,000		$	291,478		$	(825,347	)	$	334,236
INVESTING ACTIVITIES
Capital expenditures	—			(335		)	—			(121,764		)	—			(122,099		)
Purchase of additional interest in New Zealand joint venture	—			—			—			(139,879		)	—			(139,879		)
Purchase of timberlands	—			—			—			(11,650		)	—			(11,650		)
Intercompany purchase of real estate	—			—			—			—			—			—
Jesup mill cellulose specialties expansion	—			—			—			(137,392		)	—			(137,392		)
Proceeds from disposition of Wood Products business	—			—			—			68,063			—			68,063
Change in restricted cash	—			—			—			3,989			—			3,989
Investment in Subsidiaries	(138,178		)	(138,178		)	(316,836		)	—			593,192			—
Other	—			1,701			—			(1,925		)	—			(224		)
CASH USED FOR INVESTING ACTIVITIES	(138,178		)	(136,812		)	(316,836		)	(340,558		)	593,192			(339,192		)
FINANCING ACTIVITIES
Issuance of debt	175,000			—			375,000			57,885			—			607,885
Repayment of debt	(325,000		)	—			(56,527		)	(71,936		)	—			(453,463		)
Dividends paid	(175,079		)	—			—			—			—			(175,079		)
Proceeds from the issuance of common shares	9,205			—			—			—			—			9,205
Excess tax benefits on stock-based compensation	—			—			—			8,189			—			8,189
Repurchase of common shares	(11,303		)	—			—			—			—			(11,303		)
Issuance of intercompany notes	(4,000		)				—			4,000			—			—
Intercompany distributions	—			(256,921		)	(84,000		)	108,766			232,155			—
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES	(331,177		)	(256,921		)	234,473			106,904			232,155			(14,566		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			—			(336		)	—			(336		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(79,950		)	967			1,637			57,488			—			(19,858		)
Balance, beginning of year	252,888			3,966			19,358			4,384			—			280,596
Balance, end of period	$	172,938		$	4,933		$	20,995		$	61,872		$	—		$	260,738

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 September 30, 2014
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	149,829		$	—		$	149,829
Costs and Expenses
Cost of sales	—			—			118,088			—			118,088
Selling and general expenses	—			3,488			5,318			—			8,806
Other operating income, net	—			(854		)	(8,290		)	—			(9,144		)
	—			2,634			115,116			—			117,750
OPERATING (LOSS) INCOME	—			(2,634		)	34,713			—			32,079
Interest expense	(3,685		)	(2,981		)	(2,900		)	—			(9,566		)
Interest and miscellaneous income (expense), net	1,799			554			(4,087		)	—			(1,734		)
Equity in income from subsidiaries	34,587			38,414			—			(73,001		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	32,701			33,353			27,726			(73,001		)	20,779
Income tax benefit	—			1,234			10,046			—			11,280
INCOME FROM CONTINUING OPERATIONS	32,701			34,587			37,772			(73,001		)	32,059
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income taxes	—			—			—			—			—
NET INCOME	32,701			34,587			37,772			(73,001		)	32,059
Less: Net loss attributable to noncontrolling interest	—			—			(642		)	—			(642		)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	32,701			34,587			38,414			(73,001		)	32,701
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment	(27,317		)	(27,317		)	(37,738		)	54,495			(37,877		)
New Zealand joint venture cash flow hedges	(2,270		)	(2,272		)	(3,494		)	4,542			(3,494		)
Amortization of pension and postretirement plans, net of income tax	2,265			2,265			(4,120		)	1,855			2,265
Total other comprehensive loss	(27,322		)	(27,324		)	(45,352		)	60,892			(39,106		)
COMPREHENSIVE INCOME (LOSS)	5,379			7,263			(7,580		)	(12,109		)	(7,047		)
Less: Comprehensive loss attributable to noncontrolling interest	—			—			(12,295		)	(131		)	(12,426		)
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$	5,379		$	7,263		$	4,715		$	(11,978	)	$	5,379

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended September 30, 2013
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	159,261		$	—		$	159,261
Costs and Expenses
Cost of sales	—			—			129,002			—			129,002
Selling and general expenses	—			2,276			10,828			—			13,104
Other operating expense (income), net	—			738			(4,213		)	661			(2,814		)
	—			3,014			135,617			661			139,292
OPERATING (LOSS) INCOME	—			(3,014		)	23,644			(661		)	19,969
Interest expense	(3,190		)	(7,277		)	(356		)	—			(10,823		)
Interest and miscellaneous income (expense), net	2,538			(3,555		)	103			—			(914		)
Equity in income from subsidiaries	57,932			66,610			—			(124,542		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	57,280			52,764			23,391			(125,203		)	8,232
Income tax benefit	65			5,168			1,642			(67		)	6,808
INCOME FROM CONTINUING OPERATIONS	57,345			57,932			25,033			(125,270		)	15,040
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income taxes	—			—			43,327			—			43,327
NET INCOME	57,345			57,932			68,360			(125,270		)	58,367
Less: Net income attributable to noncontrolling interest	—			—			1,022			—			1,022
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	57,345			57,932			67,338			(125,270		)	57,345
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	17,887			17,887			24,259			(35,774		)	24,259
New Zealand joint venture cash flow hedges	2,233			2,231			3,434			(4,465		)	3,433
Amortization of pension and postretirement plans, net of income tax	3,639			3,639			2,747			(6,386		)	3,639
Total other comprehensive income	23,759			23,757			30,440			(46,625		)	31,331
COMPREHENSIVE INCOME	$	81,104		$	81,689		$	98,800		$	(171,895	)	$	89,698
Less: Comprehensive income attributable to noncontrolling interest	$	—		$	—		$	8,594		$	—		$	8,594
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$	81,104		$	81,689		$	90,206		$	(171,895	)	$	81,104

	CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2014
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	456,161		$	—		$	456,161
Costs and Expenses
Cost of sales	—			—			357,083			—			357,083
Selling and general expenses	—			8,032			27,872			—			35,904
Other operating expense (income), net	—			3,094			(24,002		)	—			(20,908		)
	—			11,126			360,953			—			372,079
OPERATING (LOSS) INCOME	—			(11,126		)	95,208			—			84,082
Interest expense	(10,074		)	(21,121		)	(4,657		)	—			(35,852		)
Interest and miscellaneous income (expense), net	7,230			(3,780		)	(10,581		)	—			(7,131		)
Equity in income from subsidiaries	93,324			121,047			—			(214,371		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	90,480			85,020			79,970			(214,371		)	41,099
Income tax benefit (expense)	—			8,304			(2,985		)	—			5,319
INCOME FROM CONTINUING OPERATIONS	90,480			93,324			76,985			(214,371		)	46,418
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income taxes	—			—			43,092			—			43,092
NET INCOME	90,480			93,324			120,077			(214,371		)	89,510
Less: Net loss attributable to noncontrolling interest	—			—			(970		)	—			(970		)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	90,480			93,324			121,047			(214,371		)	90,480
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment	(11,770		)	(11,770		)	(16,426		)	23,540			(16,426		)
New Zealand joint venture cash flow hedges	(1,756		)	(1,758		)	(2,703		)	3,514			(2,703		)
Amortization of pension and postretirement plans, net of income tax	63,235			63,235			90,214			(153,449		)	63,235
Total other comprehensive income	49,709			49,707			71,085			(126,395		)	44,106
COMPREHENSIVE INCOME	140,189			143,031			191,163			(340,767		)	133,616
Less: Comprehensive loss attributable to noncontrolling interest	—			—			(6,573		)	—			(6,573		)
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$	140,189		$	143,031		$	197,736		$	(340,767	)	$	140,189

	CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2013
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	421,203		$	—		$	421,203
Costs and Expenses
Cost of sales	—			—			333,523			—			333,523
Selling and general expenses	—			7,357			33,847			—			41,204
Other operating (income) expense, net	(1,701		)	1,187			(10,073		)	—			(10,587		)
	(1,701		)	8,544			357,297			—			364,140
Equity in income of New Zealand joint venture	—			—			562			—			562
OPERATING INCOME (LOSS) BEFORE GAIN ON CONSOLIDATION OF NEW ZEALAND JOINT VENTURE	1,701			(8,544		)	64,468			—			57,625
Gain related to consolidation of New Zealand joint venture	—			—			16,098			—			16,098
OPERATING INCOME (LOSS)	1,701			(8,544		)	80,566			—			73,723
Interest (expense) income	(9,879		)	(21,410		)	663			—			(30,626		)
Interest and miscellaneous income (expense), net	6,716			(3,470		)	(1,394		)	—			1,852
Equity in income from subsidiaries	293,706			316,241			—			(609,947		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	292,244			282,817			79,835			(609,947		)	44,949
Income tax benefit	—			10,889			17,861			—			28,750
INCOME FROM CONTINUING OPERATIONS	292,244			293,706			97,696			(609,947		)	73,699
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income tax	—			—			220,294			—			220,294
NET INCOME	292,244			293,706			317,990			(609,947		)	293,993
Less: Net income attributable to noncontrolling interest	—			—			1,749			—			1,749
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	292,244			293,706			316,241			(609,947		)	292,244
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation adjustment	237			237			(2,967		)	(474		)	(2,967		)
New Zealand joint venture cash flow hedges	3,663			3,663			4,209			(7,326		)	4,209
Amortization of pension and postretirement plans, net of income tax	12,326			12,326			9,578			(21,904		)	12,326
Total other comprehensive income	16,226			16,226			10,820			(29,704		)	13,568
COMPREHENSIVE INCOME	308,470			309,932			328,810			(639,651		)	307,561
Less: Comprehensive loss attributable to noncontrolling interest	—			—			(909		)	—			(909		)
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$	308,470		$	309,932		$	329,719		$	(639,651	)	$	308,470

Schedule of Condensed Consolidating Balance Sheets

	CONDENSED CONSOLIDATING BALANCE SHEETS As of September 30, 2014
	Rayonier Inc. (Parent Issuer)		Subsidiary Guarantors		Non- guarantors			Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	84,283	$	51,488	$	47,060		$	—		$	182,831
Restricted cash	—		—		—			—			—
Accounts receivable, less allowance for doubtful accounts	—		1,359		26,878			—			28,237
Inventory	—		—		12,439			—			12,439
Deferred tax asset	—		—		4,211			—			4,211
Prepaid and other current assets	—		1,525		22,296			—			23,821
Total current assets	84,283		54,372		112,884			—			251,539
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		2,058,381			—			2,058,381
NET PROPERTY, PLANT AND EQUIPMENT	—		483		6,048			—			6,531
INVESTMENT IN SUBSIDIARIES	1,522,406		1,981,482		—			(3,503,888		)	—
INTERCOMPANY NOTES RECEIVABLE	245,898		21,279		—			(267,177		)	—
OTHER ASSETS	2,860		19,277		138,971			—			161,108
TOTAL ASSETS	$	1,855,447	$	2,076,893	$	2,316,284		$	(3,771,065	)	$	2,477,559
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	3,647	$	19,479		$	—		$	23,126
Current maturities of long-term debt	—		129,199		1,287			—			130,486
Accrued taxes	—		41		14,913			—			14,954
Uncertain tax positions	—		—		—			—			—
Accrued payroll and benefits	—		3,892		2,446			—			6,338
Accrued interest	6,116		1,001		29,098			(26,079		)	10,136
Other current liabilities	—		1,113		25,483			—			26,596
Total current liabilities	6,116		138,893		92,706			(26,079		)	211,636
LONG-TERM DEBT	325,000		14,999		265,163			—			605,162
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		23,078		(685		)	—			22,393
OTHER NON-CURRENT LIABILITIES	—		6,876		20,590			—			27,466
INTERCOMPANY PAYABLE	—		370,641		(100,759		)	(269,882		)	—
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,524,331		1,522,406		1,952,698			(3,475,104		)	1,524,331
Noncontrolling interest	—		—		86,571			—			86,571
TOTAL SHAREHOLDERS’ EQUITY	1,524,331		1,522,406		2,039,269			(3,475,104		)	1,610,902
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,855,447	$	2,076,893	$	2,316,284		$	(3,771,065	)	$	2,477,559

	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
Uncertain tax positions	—		5,780		4,767		—			10,547
Accrued payroll and benefits	—		11,382		13,566		—			24,948
Accrued interest	3,047		3,280		22,816		(19,612		)	9,531
Accrued customer incentives	—		—		9,580		—			9,580
Other current liabilities	—		2,985		21,342		—			24,327
Current liabilities for dispositions and discontinued operations	—		—		6,835		—			6,835
Total current liabilities	3,047		143,868		148,809		(19,612		)	276,112
LONG-TERM DEBT	325,000		847,749		288,975		—			1,461,724
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		69,543		—			69,543
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		91,471		4,183		—			95,654
OTHER NON-CURRENT LIABILITIES	—		11,493		15,732		—			27,225
INTERCOMPANY PAYABLE	—		118,227		125,921		(244,148		)	—
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,661,170		1,627,315		2,749,142		(4,376,457		)	1,661,170
Noncontrolling interest	—		—		94,073		—			94,073
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 Nine Months Ended September 30, 2014
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	219,988		$	238,010		$	54,461		$	(231,730	)	$	280,729
INVESTING ACTIVITIES
Capital expenditures	—			(400		)	(105,258		)	—			(105,658		)
Purchase of timberlands	—			—			(93,189		)	—			(93,189		)
Change in restricted cash	—			—			47,318			—			47,318
Investment in Subsidiaries	—			855,014			—			(855,014		)	—
Other	—			—			(478		)	—			(478		)
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	—			854,614			(151,607		)	(855,014		)	(152,007		)
FINANCING ACTIVITIES
Issuance of debt	—			185,000			1,110,163			—			1,295,163
Repayment of debt	—			(1,002,500		)	(170,549		)	—			(1,173,049		)
Dividends paid	(225,877		)	—			—			—			(225,877		)
Proceeds from the issuance of common shares	4,645			—			—			—			4,645
Debt issuance costs	—			—			(12,380		)	—			(12,380		)
Repurchase of common shares	(1,834		)	—			—			—			(1,834		)
Purchase of timberland deeds for Rayonier Advanced Materials	(12,677		)	—			—			—			(12,677		)
Debt issuance funds distributed to Rayonier Advanced Materials	(924,943		)	—			—			—			(924,943		)
Proceeds from spin-off of Rayonier Advanced Materials	906,200			—			—			—			906,200
Change in restricted cash reserved for dividends	—			—			—			—			—
Issuance of intercompany notes	(11,400		)	—			11,400			—			—
Intercompany distributions	—			(234,659		)	(852,085		)	1,086,744			—
Other	—			—			(680		)	—			(680		)
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES	(265,886		)	(1,052,159		)	85,869			1,086,744			(145,432		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			(103		)	—			(103		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(45,898		)	40,465			(11,380		)	—			(16,813		)
Balance, beginning of year	130,181			11,023			58,440			—			199,644
Balance, end of period	$	84,283		$	51,488		$	47,060		$	—		$	182,831

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 2013
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	389,405		$	394,700		$	291,478		$	(741,347	)	$	334,236
INVESTING ACTIVITIES
Capital expenditures	—			(335		)	(121,764		)	—			(122,099		)
Purchase of additional interest in New Zealand joint venture	—			—			(139,879		)	—			(139,879		)
Purchase of timberlands	—			—			(11,650		)	—			(11,650		)
Intercompany purchase of real estate	—			—			—			—			—
Jesup mill cellulose specialties expansion	—			—			(137,392		)	—			(137,392		)
Proceeds from disposition of Wood Products business	—			—			68,063			—			68,063
Change in restricted cash	—			—			3,989			—			3,989
Investment in Subsidiaries	(138,178		)	(455,014		)	—			593,192			—
Other	—			1,701			(1,925		)	—			(224		)
CASH USED FOR INVESTING ACTIVITIES	(138,178		)	(453,648		)	(340,558		)	593,192			(339,192		)
FINANCING ACTIVITIES
Issuance of debt	175,000			375,000			57,885			—			607,885
Repayment of debt	(325,000		)	(56,527		)	(71,936		)	—			(453,463		)
Dividends paid	(175,079		)	—			—			—			(175,079		)
Proceeds from the issuance of common shares	9,205			—			—			—			9,205
Excess tax benefits on stock-based compensation	—			—			8,189			—			8,189
Repurchase of common shares	(11,303		)	—			—			—			(11,303		)
Issuance of intercompany notes	(4,000		)	—			4,000			—			—
Intercompany distributions	—			(256,921		)	108,766			148,155			—
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES	(331,177		)	61,552			106,904			148,155			(14,566		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			(336		)	—			(336		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(79,950		)	2,604			57,488			—			(19,858		)
Balance, beginning of year	252,888			23,324			4,384			—			280,596
Balance, end of period	$	172,938		$	25,928		$	61,872		$	—		$	260,738