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, Rayonier TRS Holdings Inc. issued $172.5 million of 4.50% Senior Exchangeable Notes due August 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.

The subsidiary issuer and subsidiary guarantor are wholly-owned by the Parent Company, Rayonier Inc. The notes are fully and unconditionally guaranteed on a joint and several basis by the guarantor subsidiary and Rayonier Inc.



	CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended March 31, 2015
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	—			—			—				$140,305		—				$140,305
Costs and Expenses
Cost of sales	—			—			—			107,234			—			107,234
Selling and general expenses	—			4,949			—			5,949			—			10,898
Other operating income, net	—			—			—			(5,574		)	—			(5,574		)
	—			4,949			—			107,609			—			112,558
OPERATING (LOSS) INCOME	—			(4,949		)	—			32,696			—			27,747
Interest expense	(3,168		)	(92		)	(2,432		)	(2,852		)	—			(8,544		)
Interest and miscellaneous income (expense), net	1,936			837			(144		)	(4,123		)	—			(1,494		)
Equity in income (loss) from subsidiaries	18,979			23,183			1,427			—			(43,589		)	—
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	17,747			18,979			(1,149		)	25,721			(43,589		)	17,709
Income tax benefit (expense)	—			—			960			(489		)	—			471
NET INCOME (LOSS)	17,747			18,979			(189		)	25,232			(43,589		)	18,180
Less: Net income attributable to noncontrolling interest	—			—			—			433			—			433
NET INCOME (LOSS) ATTRIBUTABLE TO RAYONIER INC.	17,747			18,979			(189		)	24,799			(43,589		)	17,747
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment	(10,430		)	(10,430		)	(852		)	(14,323		)	21,712			(14,323		)
New Zealand joint venture cash flow hedges	(615		)	(615		)	(615		)	(946		)	1,845			(946		)
Amortization of pension and postretirement plans, net of income tax	781			781			20			20			(821		)	781
Total other comprehensive loss	(10,264		)	(10,264		)	(1,447		)	(15,249		)	22,736			(14,488		)
COMPREHENSIVE INCOME (LOSS)	7,483			8,715			(1,636		)	9,983			(20,853		)	3,692
Less: Comprehensive loss attributable to noncontrolling interest	—			—			—			(3,791		)	—			(3,791		)
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO RAYONIER INC.		$7,483			$8,715			($1,636	)		$13,774			($20,853	)		$7,483



	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
SALES	—			—			—				$143,187		—				$143,187
Costs and Expenses
Cost of sales	—			—			—			115,900			—			115,900
Selling and general expenses	—			2,150			—			11,087			—			13,237
Other operating expense (income), net	—			2,375			—			(2,750		)	—			(375		)
	—			4,525			—			124,237			—			128,762
OPERATING (LOSS) INCOME	—			(4,525		)	—			18,950			—			14,425
Interest expense	(3,193		)	(243		)	(6,690		)	(549		)	—			(10,675		)
Interest and miscellaneous income (expense), net	2,698			814			(1,047		)	(3,476		)	—			(1,011		)
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			14,925			(119,509		)	2,739
Income tax (expense) benefit	—			(603		)	2,824			5,375			—			7,596
INCOME FROM CONTINUING OPERATIONS	41,426			41,921			26,197			20,300			(119,509		)	10,335
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income taxes	—			—			—			31,008			—			31,008
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 BALANCE SHEETS As of March 31, 2015
	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		$77,738		$4,282			$1,287			$55,742		—				$139,049
Accounts receivable, less allowance for doubtful accounts	—		—			182			19,778			—			19,960
Inventory	—		—			—			13,100			—			13,100
Prepaid and other current assets	—		2,075			2,120			13,845			—			18,040
Total current assets	77,738		6,357			3,589			102,465			—			190,149
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—			—			2,073,024			—			2,073,024
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS	—		—			—			71,952			—			71,952
NET PROPERTY, PLANT AND EQUIPMENT	—		390			—			6,202			—			6,592
INVESTMENT IN SUBSIDIARIES	1,465,487		1,946,368			650,156			—			(4,062,011		)	—
INTERCOMPANY NOTES RECEIVABLE	250,530		—			21,713			—			(272,243		)	—
OTHER ASSETS	2,667		16,538			1,516			50,112			—			70,833
TOTAL ASSETS		$1,796,422		$1,969,653			$676,974			$2,303,755			($4,334,254	)		$2,412,550
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	—			$1,809			$31			$20,388		—				$22,228
Current maturities of long-term debt	—		—			130,213			—			—			130,213
Accrued taxes	—		11			—			12,450			—			12,461
Accrued payroll and benefits	—		1,282			—			1,714			—			2,996
Accrued interest	6,095		(8		)	1,047			33,468			(30,710		)	9,892
Other current liabilities	—		788			(69		)	18,283			—			19,002
Total current liabilities	6,095		3,882			131,222			86,303			(30,710		)	196,792
LONG-TERM DEBT	325,000		—			33,759			254,045			—			612,804
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		34,345			—			(684		)	—			33,661
OTHER NON-CURRENT LIABILITIES	—		6,623			—			14,454			—			21,077
INTERCOMPANY PAYABLE	—		459,316			—			(201,620		)	(257,696		)	—
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,465,327		1,465,487			511,993			2,068,368			(4,045,848		)	1,465,327
Noncontrolling interest	—		—			—			82,889			—			82,889
TOTAL SHAREHOLDERS’ EQUITY	1,465,327		1,465,487			511,993			2,151,257			(4,045,848		)	1,548,216
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$1,796,422		$1,969,653			$676,974			$2,303,755			($4,334,254	)		$2,412,550



	CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 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		$102,218		$11			$8,094		$51,235		—				$161,558
Accounts receivable, less allowance for doubtful accounts	—		—			1,409		22,609			—			24,018
Inventory	—		—			—		8,383			—			8,383
Prepaid and other current assets	—		2,003			6		17,736			—			19,745
Total current assets	102,218		2,014			9,509		99,963			—			213,704
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—			—		2,088,501			—			2,088,501
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS	—		—			—		77,433			—			77,433
NET PROPERTY, PLANT AND EQUIPMENT	—		433			—		6,273			—			6,706
INVESTMENT IN SUBSIDIARIES	1,463,303		1,923,185			640,678		—			(4,027,166		)	—
INTERCOMPANY NOTES RECEIVABLE	248,233		—			21,500		—			(269,733		)	—
OTHER ASSETS	2,763		16,610			1,759		45,639			—			66,771
TOTAL ASSETS		$1,816,517		$1,942,242			$673,446		$2,317,809			($4,296,899	)		$2,453,115
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	—			$2,687			$123		$17,401		—				$20,211
Current maturities of long-term debt	—		—			129,706		—			—			129,706
Accrued taxes	—		11			—		11,394			—			11,405
Accrued payroll and benefits	—		3,253			—		3,137			—			6,390
Accrued interest	3,047		(3		)	2,520		31,281			(28,412		)	8,433
Other current liabilities	—		928			145		24,784			—			25,857
Total current liabilities	3,047		6,876			132,494		87,997			(28,412		)	202,002
LONG-TERM DEBT	325,000		—			31,000		265,849			—			621,849
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		34,161			—		(684		)	—			33,477
OTHER NON-CURRENT LIABILITIES	—		6,436			—		14,200			—			20,636
INTERCOMPANY PAYABLE	—		431,466			—		(153,754		)	(277,712		)	—
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,488,470		1,463,303			509,952		2,017,520			(3,990,775		)	1,488,470
Noncontrolling interest	—		—			—		86,681			—			86,681
TOTAL SHAREHOLDERS’ EQUITY	1,488,470		1,463,303			509,952		2,104,201			(3,990,775		)	1,575,151
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$1,816,517		$1,942,242			$673,446		$2,317,809			($4,296,899	)		$2,453,115



	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2015
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES		$6,735			$13,604		—				$42,105			($9,046	)		$53,398
INVESTING ACTIVITIES
Capital expenditures	—			—			—			(13,292		)	—			(13,292		)
Real estate development costs	—			—			—			(306		)	—			(306		)
Purchase of timberlands	—			—			—			(23,070		)	—			(23,070		)
Change in restricted cash	—			—			—			(7,071		)	—			(7,071		)
Investment in Subsidiaries	—			—			(8,807		)	—			8,807			—
CASH USED FOR INVESTING ACTIVITIES	—			—			(8,807		)	(43,739		)	8,807			(43,739		)
FINANCING ACTIVITIES
Issuance of debt	—			—			12,000			—			—			12,000
Repayment of debt	—			—			(10,000		)	(1,371		)	—			(11,371		)
Dividends paid	(31,667		)	—			—			—			—			(31,667		)
Proceeds from the issuance of common shares	546			—			—			—			—			546
Repurchase of common shares	(94		)	—			—			—			—			(94		)
Intercompany distributions	—			(9,333		)	—			9,094			239			—
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES	(31,215		)	(9,333		)	2,000			7,723			239			(30,586		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			—			(1,582		)	—			(1,582		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(24,480		)	4,271			(6,807		)	4,507			—			(22,509		)
Balance, beginning of year	102,218			11			8,094			51,235			—			161,558
Balance, end of period		$77,738			$4,282			$1,287			$55,742		—				$139,049



	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		—				$68,585			($27,210	)		$100,100
INVESTING ACTIVITIES
Capital expenditures	—			(170		)	—			(34,470		)	—			(34,640		)
Real estate development costs	—			—			—			(1,812		)	—			(1,812		)
Purchase of timberlands	—			—			—			(10,637		)	—			(10,637		)
Change in restricted cash	—			—			—			45,312			—			45,312
Investment in Subsidiaries	—			—			69,103			—			(69,103		)	—
Other	—			—			—			(778		)	—			(778		)
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES	—			(170		)	69,103			(2,385		)	(69,103		)	(2,555		)
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
Repurchase of common shares	(1,754		)	—			—			—			—			(1,754		)
Intercompany distributions	—			(28,434		)	—			(67,879		)	96,313			—
Other	—			—			—			(678		)	—			(678		)
CASH USED FOR FINANCING ACTIVITIES	(62,272		)	(28,434		)	(80,000		)	(66,738		)	96,313			(141,131		)
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

In March 2012, Rayonier Inc. issued $325 million of 3.75% Senior Notes due 2022. In connection with these 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.

The subsidiary guarantors, ROC and Rayonier TRS Holdings, Inc., are wholly-owned by the Parent Company, Rayonier, Inc. The notes are fully and unconditionally guaranteed on a joint and several basis by the guarantor subsidiaries.



	CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended March 31, 2015
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	—			—				$140,305		—				$140,305
Costs and Expenses
Cost of sales	—			—			107,234			—			107,234
Selling and general expenses	—			4,949			5,949			—			10,898
Other operating income, net	—			—			(5,574		)	—			(5,574		)
	—			4,949			107,609			—			112,558
OPERATING (LOSS) INCOME	—			(4,949		)	32,696			—			27,747
Interest expense	(3,168		)	(2,524		)	(2,852		)	—			(8,544		)
Interest and miscellaneous income (expense), net	1,936			693			(4,123		)	—			(1,494		)
Equity in income from subsidiaries	18,979			24,799			—			(43,778		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	17,747			18,019			25,721			(43,778		)	17,709
Income tax benefit (expense)	—			960			(489		)	—			471
NET INCOME	17,747			18,979			25,232			(43,778		)	18,180
Less: Net income attributable to noncontrolling interest	—			—			433			—			433
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	17,747			18,979			24,799			(43,778		)	17,747
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment	(10,430		)	(10,430		)	(14,323		)	20,860			(14,323		)
New Zealand joint venture cash flow hedges	(615		)	(615		)	(946		)	1,230			(946		)
Amortization of pension and postretirement plans, net of income tax	781			781			20			(801		)	781
Total other comprehensive loss	(10,264		)	(10,264		)	(15,249		)	21,289			(14,488		)
COMPREHENSIVE INCOME	7,483			8,715			9,983			(22,489		)	3,692
Less: Comprehensive loss attributable to noncontrolling interest	—			—			(3,791		)	—			(3,791		)
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.		$7,483			$8,715			$13,774			($22,489	)		$7,483



	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
SALES	—			—				$143,187		—				$143,187
Costs and Expenses
Cost of sales	—			—			115,900			—			115,900
Selling and general expenses	—			2,150			11,087			—			13,237
Other operating expense (income), net	—			2,375			(2,750		)	—			(375		)
	—			4,525			124,237			—			128,762
OPERATING (LOSS) INCOME	—			(4,525		)	18,950			—			14,425
Interest expense	(3,193		)	(6,933		)	(549		)	—			(10,675		)
Interest and miscellaneous income (expense), net	2,698			(233		)	(3,476		)	—			(1,011		)
Equity in income from subsidiaries	41,921			51,391			—			(93,312		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	41,426			39,700			14,925			(93,312		)	2,739
Income tax benefit	—			2,221			5,375			—			7,596
INCOME FROM CONTINUING OPERATIONS	41,426			41,921			20,300			(93,312		)	10,335
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income tax	—			—			31,008			—			31,008
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 BALANCE SHEETS As of March 31, 2015
	Rayonier Inc. (Parent Issuer)		Subsidiary Guarantors		Non- guarantors			Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$77,738		$5,569		$55,742		—				$139,049
Accounts receivable, less allowance for doubtful accounts	—		182		19,778			—			19,960
Inventory	—		—		13,100			—			13,100
Prepaid and other current assets	—		4,195		13,845			—			18,040
Total current assets	77,738		9,946		102,465			—			190,149
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		2,073,024			—			2,073,024
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS	—		—		71,952			—			71,952
NET PROPERTY, PLANT AND EQUIPMENT	—		390		6,202			—			6,592
INVESTMENT IN SUBSIDIARIES	1,465,487		2,084,531		—			(3,550,018		)	—
INTERCOMPANY NOTES RECEIVABLE	250,530		21,713		—			(272,243		)	—
OTHER ASSETS	2,667		18,054		50,112			—			70,833
TOTAL ASSETS		$1,796,422		$2,134,634		$2,303,755			($3,822,261	)		$2,412,550
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	—			$1,840		$20,388		—				$22,228
Current maturities of long-term debt	—		130,213		—			—			130,213
Accrued taxes	—		11		12,450			—			12,461
Accrued payroll and benefits	—		1,282		1,714			—			2,996
Accrued interest	6,095		1,039		33,468			(30,710		)	9,892
Other current liabilities	—		719		18,283			—			19,002
Total current liabilities	6,095		135,104		86,303			(30,710		)	196,792
LONG-TERM DEBT	325,000		33,759		254,045			—			612,804
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		34,345		(684		)	—			33,661
OTHER NON-CURRENT LIABILITIES	—		6,623		14,454			—			21,077
INTERCOMPANY PAYABLE	—		459,316		(201,620		)	(257,696		)	—
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,465,327		1,465,487		2,068,368			(3,533,855		)	1,465,327
Noncontrolling interest	—		—		82,889			—			82,889
TOTAL SHAREHOLDERS’ EQUITY	1,465,327		1,465,487		2,151,257			(3,533,855		)	1,548,216
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$1,796,422		$2,134,634		$2,303,755			($3,822,261	)		$2,412,550



	CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2014
	Rayonier Inc. (Parent Issuer)		Subsidiary Guarantors		Non- guarantors			Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$102,218		$8,105		$51,235		—				$161,558
Accounts receivable, less allowance for doubtful accounts	—		1,409		22,609			—			24,018
Inventory	—		—		8,383			—			8,383
Prepaid and other current assets	—		2,009		17,736			—			19,745
Total current assets	102,218		11,523		99,963			—			213,704
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		2,088,501			—			2,088,501
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS	—		—		77,433			—			77,433
NET PROPERTY, PLANT AND EQUIPMENT	—		433		6,273			—			6,706
INVESTMENT IN SUBSIDIARIES	1,463,303		2,053,911		—			(3,517,214		)	—
INTERCOMPANY NOTES RECEIVABLE	248,233		21,500		—			(269,733		)	—
OTHER ASSETS	2,763		18,369		45,639			—			66,771
TOTAL ASSETS		$1,816,517		$2,105,736		$2,317,809			($3,786,947	)		$2,453,115
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	—			$2,810		$17,401		—				$20,211
Current maturities of long-term debt	—		129,706		—			—			129,706
Accrued taxes	—		11		11,394			—			11,405
Accrued payroll and benefits	—		3,253		3,137			—			6,390
Accrued interest	3,047		2,517		31,281			(28,412		)	8,433
Other current liabilities	—		1,073		24,784			—			25,857
Total current liabilities	3,047		139,370		87,997			(28,412		)	202,002
LONG-TERM DEBT	325,000		31,000		265,849			—			621,849
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		34,161		(684		)	—			33,477
OTHER NON-CURRENT LIABILITIES	—		6,436		14,200			—			20,636
INTERCOMPANY PAYABLE	—		431,466		(153,754		)	(277,712		)	—
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,488,470		1,463,303		2,017,520			(3,480,823		)	1,488,470
Noncontrolling interest	—		—		86,681			—			86,681
TOTAL SHAREHOLDERS’ EQUITY	1,488,470		1,463,303		2,104,201			(3,480,823		)	1,575,151
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$1,816,517		$2,105,736		$2,317,809			($3,786,947	)		$2,453,115



	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2015
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES		$6,735			$13,604			$42,105			($9,046	)		$53,398
INVESTING ACTIVITIES
Capital expenditures	—			—			(13,292		)	—			(13,292		)
Real estate development costs	—			—			(306		)	—			(306		)
Purchase of timberlands	—			—			(23,070		)	—			(23,070		)
Change in restricted cash	—			—			(7,071		)	—			(7,071		)
Investment in Subsidiaries	—			(8,807		)	—			8,807			—
CASH USED FOR INVESTING ACTIVITIES	—			(8,807		)	(43,739		)	8,807			(43,739		)
FINANCING ACTIVITIES
Issuance of debt	—			12,000			—			—			12,000
Repayment of debt	—			(10,000		)	(1,371		)	—			(11,371		)
Dividends paid	(31,667		)	—			—			—			(31,667		)
Proceeds from the issuance of common shares	546			—			—			—			546
Repurchase of common shares	(94		)	—			—			—			(94		)
Intercompany distributions	—			(9,333		)	9,094			239			—
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES	(31,215		)	(7,333		)	7,723			239			(30,586		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			(1,582		)	—			(1,582		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(24,480		)	(2,536		)	4,507			—			(22,509		)
Balance, beginning of year	102,218			8,105			51,235			—			161,558
Balance, end of period		$77,738			$5,569			$55,742		—				$139,049



	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			$68,585			($27,210	)		$100,100
INVESTING ACTIVITIES
Capital expenditures	—			(170		)	(34,470		)	—			(34,640		)
Real estate development costs	—			—			(1,812		)	—			(1,812		)
Purchase of timberlands	—			—			(10,637		)	—			(10,637		)
Change in restricted cash	—			—			45,312			—			45,312
Investment in Subsidiaries	—			69,103			—			(69,103		)	—
Other	—			—			(778		)	—			(778		)
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	—			68,933			(2,385		)	(69,103		)	(2,555		)
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
Repurchase of common shares	(1,754		)	—			—			—			(1,754		)
Intercompany distributions	—			(28,434		)	(67,879		)	96,313			—
Other	—			—			(678		)	—			(678		)
CASH USED FOR FINANCING ACTIVITIES	(62,272		)	(108,434		)	(66,738		)	96,313			(141,131		)
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