QUARTERLY RESULTS FOR 2014 and 2013 (UNAUDITED)

(thousands of dollars, except per share amounts)



	Quarter Ended						Total Year
	March 31		June 30		Sept. 30	Dec. 31
2014
Sales	$143,187		$163,145		$149,829	$147,360	$603,521
Cost of sales	115,900		123,096		118,088	126,776	483,860
Income from continuing operations	10,335		4,024		32,059	8,025	54,443
Income from discontinued operations	31,008		12,084		—	311	43,403
Net income	41,343		16,108		32,059	8,336	97,846
Net income attributable to Rayonier Inc.	41,426		16,353		32,701	8,857	99,337
Basic EPS attributable to Rayonier Inc.
Continuing Operations	$0.08		$0.03		$0.26	$0.07	$0.44
Discontinued Operations	0.25		0.10		—	—	0.34
Net Income	$0.33		$0.13		$0.26	$0.07	$0.78
Diluted EPS attributable to Rayonier Inc.
Continuing Operations	$0.08		$0.03		$0.25	$0.07	$0.43
Discontinued Operations	0.24		0.09		—	—	0.33
Net Income	$0.32		$0.12		$0.25	$0.07	$0.76

2013
Sales	107,053		154,889		159,261	238,515	659,718
Cost of sales	76,660		127,861		129,002	197,249	530,772
Income from continuing operations	19,028		39,631	(b)	15,040	32,144	105,843	(b)
Income from discontinued operations	128,707	(a)	48,260		43,327	47,661	267,955	(a)
Net income	147,735	(a)	87,891	(b)	58,367	79,805	373,798	(a) (b)
Net income attributable to Rayonier Inc.	147,735	(a)	87,164	(b)	57,345	79,652	371,896	(a) (b)
Basic EPS attributable to Rayonier Inc.
Continuing Operations	$0.15		$0.31		$0.11	$0.25	$0.83
Discontinued Operations	1.04		0.38		0.34	0.38	2.13
Net Income	$1.19		$0.69		$0.45	$0.63	$2.96
Diluted EPS attributable to Rayonier Inc.
Continuing Operations	$0.15		$0.30		$0.11	$0.25	$0.80
Discontinued Operations	0.98		0.37		0.33	0.37	2.06
Net Income	$1.13		$0.67		$0.44	$0.62	$2.86


(a)	Income from discontinued operations, Net income and Net income attributable to Rayonier Inc. included a $43 million gain on the sale of Wood Products for the quarter ended March 31, 2013 and the year ended December 31, 2013.


(b)	Income from continuing operations, Net income and Net income attributable to Rayonier Inc., for the quarter ended June 30, 2013 and year ended December 31, 2013, included a $16 million gain related to the consolidation of the New Zealand JV.

Rayonier completed the spin-off of its Performance Fibers business on June 27, 2014 and completed the sale of its Wood Products business on March 1, 2013, as discussed at Note 3 — Discontinued Operations. Accordingly, the operating results of these businesses are reported as discontinued operations in the Company’s Consolidated Statements of Income and Comprehensive Income for all periods presented, including the quarterly periods shown above.

Subsequent to the filing of its second quarter 2014 Form 10-Q, 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 each of the quarterly periods ended March 31, 2014 and June 30, 2014. As a result, the Company concluded that it had understated its depletion expense “Cost of sales” in the Company’s consolidated statements of income and comprehensive income by approximately $2.0 million for each period. As a result, the amounts in the previous table have been restated from amounts previously reported. See Item 2 — Management Discussion and Analysis — Overview — Background in Form 10-Q for the quarter ended September 30, 2014, as filed with the SEC on November 14, 2014 for further discussion.

The following tables summarize the effect of the discontinued operations reclassification and the restatement for the period ended March 31, 2014 and the effect of the restatement for the period ended June 30, 2014. 2013 is excluded from the reconciliations below as all changes from amounts originally reported in 2013 are solely attributable to discontinued operations reclassifications.



	Quarter Ended March 31, 2014
	As Previously Reported	Discontinued Operations Reclassification	Restatement	As Restated
Sales	$386,686	$(243,499)	—	$143,187
Cost of sales	302,650	(184,801)	(1,949)	115,900
Income from Continuing Operations	43,292	(31,008)	(1,949)	10,335
Income from Discontinued Operations	—	31,008	—	31,008
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	$(0.25)	$(0.01)	$0.08
Discontinued Operations	—	0.25	—	0.25
Net Income	$0.34	—	$(0.01)	$0.33
Diluted Earnings Per Share Attributable to Rayonier Inc.
Continuing Operations	$0.34	$(0.24)	$(0.02)	$0.08
Discontinued Operations	—	0.24	—	0.24
Net Income	$0.34	—	$(0.02)	$0.32



	Quarter Ended June 30, 2014
	As Previously Reported	Restatement	As Restated
Sales	$163,145	—	$163,145
Cost of sales	121,105	1,991	123,096
Income from Continuing Operations	6,056	(2,032)	4,024
Income from Discontinued Operations	12,084	—	12,084
Net Income	18,140	(2,032)	16,108
Net Income Attributable to Rayonier Inc.	18,385	(2,032)	16,353
Basic Earnings Per Share Attributable to Rayonier Inc.
Continuing Operations	$0.05	$(0.02)	$0.03
Discontinued Operations	0.10	—	0.10
Net Income	$0.15	$(0.02)	$0.13
Diluted Earnings Per Share Attributable to Rayonier Inc.
Continuing Operations	$0.05	$(0.02)	$0.03
Discontinued Operations	0.09	—	0.09
Net Income	$0.14	$(0.02)	$0.12