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INCOME TAXES
 9 Months Ended
Sep. 30, 2015
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
The operations conducted by the Company’s real estate investment trust (“REIT”) entities are generally not subject to U.S. federal and state income taxation. Non-REIT qualifying operations are conducted by the Company’s taxable REIT subsidiaries and are subject to U.S. federal and state income taxation. New Zealand operations are subject to New Zealand corporate income taxation. Prior to the June 27, 2014 spin-off of Rayonier Advanced Materials, the Company’s taxable REIT subsidiaries (“TRS”) operations included the Performance Fibers business. As such, during 2014 the income tax benefit from continuing operations was significantly impacted by the TRS businesses. Subsequent to the spin-off, the primary businesses performed in Rayonier’s taxable REIT subsidiaries include delivered logs, log trading and certain real estate activities, such as the sale and entitlement of development HBU properties.
Provision for Income Taxes from Continuing Operations
The Company’s effective tax rate is below the 35 percent U.S. statutory rate due to tax benefits associated with being a REIT. The income tax benefit for the three and nine months ended September 30, 2015 is principally related to the Matariki Forestry Group joint venture (the “New Zealand JV”). The prior year to date period’s benefit was due to losses at Rayonier's taxable operations primarily from interest and general administrative expenses not allowed to be allocated to the discontinued operations of the Performance Fibers business and is not comparable to the current year.
Provision for Income Taxes from Discontinued Operations
On June 27, 2014, Rayonier completed the spin-off of its Performance Fibers business. For the nine months ended September 30, 2014, income tax expense related to Performance Fibers discontinued operations was $21.2 million. See
Note 2 — Discontinued Operations for additional information on the spin-off of the Performance Fibers business.

The table below reconciles the U.S. statutory rate to the Company’s effective tax rate for each period presented:
 
Three Months Ended September 30,
 
2015
 
2014
Income tax expense at federal statutory rate

$6,524

 
35.0
 %
 

$7,273

 
35.0
 %
REIT income and taxable losses
(9,259
)
 
(49.6
)
 
(16,673
)
 
(80.2
)
Foreign operations
(1,466
)
 
(7.9
)
 
(44
)
 
(0.2
)
Loss valuation allowance
2,742

 
14.7

 
—

 
—

Other
90

 
0.5

 
99

 
0.4

Income tax benefit before discrete items

($1,369
)
 
(7.3
)%
 

($9,345
)
 
(45.0
)%
CBPCa valuation allowance
997

 
5.3

 
(990
)
 
(4.8
)
Uncertain tax positions
—

 
—

 
(1,830
)
 
(8.8
)
Return-to-accrual adjustments
(169
)
 
(0.9
)
 
885

 
4.3

Income tax benefit as reported for continuing operations

($541
)
 
(2.9
)%
 

($11,280
)
 
(54.3
)%
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30,
 
2015
 
2014
Income tax expense at federal statutory rate

$11,617

 
35.0
 %
 

$14,385

 
35.0
 %
REIT income and taxable losses
(16,260
)
 
(48.9
)
 
(30,572
)
 
(74.4
)
Foreign operations
(3,029
)
 
(9.1
)
 
(88
)
 
(0.2
)
Loss valuation allowance
5,360

 
16.1

 
—

 
—

Other
175

 
0.5

 
196

 
0.5

Income tax benefit before discrete items

($2,137
)
 
(6.4
)%
 

($16,079
)
 
(39.1
)%
CBPCa valuation allowance
997

 
3.0

 
14,584

 
35.5

Spin-off related costs
—

 
—

 
797

 
1.9

Deferred tax inventory valuations
—

 
—

 
(3,293
)
 
(8.0
)
Uncertain tax positions
—

 
—

 
(1,830
)
 
(4.5
)
Return-to-accrual adjustments
(169
)
 
(0.5
)
 
885

 
2.2

Other
—

 
—

 
(383
)
 
(0.9
)
Income tax benefit as reported for continuing operations

($1,309
)
 
(3.9
)%
 

($5,319
)
 
(12.9
)%

 
 
 
 
 
(a)    Cellulosic biofuels producer credit.
Unrecognized Tax Benefits
During the third quarter of 2014, the Company removed a $5.8 million unrecognized tax benefit liability due to the expiration of the statute of limitations on examination of its 2010 tax return. This resulted in a $1.8 million income tax benefit in the prior year periods.