x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
Large accelerated filer x | Accelerated filer o | |
Non-accelerated filer o | Smaller reporting company o |
Item | Page | ||
PART I - FINANCIAL INFORMATION | |||
1. | |||
2. | |||
3. | |||
4. | |||
PART II - OTHER INFORMATION | |||
1. | |||
2. | |||
6. | |||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
SALES | $171,421 | $151,657 | $567,814 | $407,764 | |||||||||||
Costs and Expenses | |||||||||||||||
Cost of sales | 116,624 | 116,044 | 362,790 | 326,966 | |||||||||||
Selling and general expenses | 10,607 | 10,689 | 31,638 | 34,315 | |||||||||||
Other operating income, net (Note 15) | (5,499 | ) | (2,855 | ) | (20,867 | ) | (15,567 | ) | |||||||
121,732 | 123,878 | 373,561 | 345,714 | ||||||||||||
OPERATING INCOME | 49,689 | 27,779 | 194,253 | 62,050 | |||||||||||
Interest expense | (8,544 | ) | (7,581 | ) | (23,603 | ) | (24,608 | ) | |||||||
Interest income and miscellaneous income (expense), net | 258 | (1,558 | ) | (1,115 | ) | (4,250 | ) | ||||||||
INCOME BEFORE INCOME TAXES | 41,403 | 18,640 | 169,535 | 33,192 | |||||||||||
Income tax (expense) benefit | (779 | ) | 541 | (2,274 | ) | 1,309 | |||||||||
NET INCOME | 40,624 | 19,181 | 167,261 | 34,501 | |||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 1,269 | (488 | ) | 3,613 | (1,379 | ) | |||||||||
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 39,355 | 19,669 | 163,648 | 35,880 | |||||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||||
Foreign currency translation adjustment, net of income tax expense of $0, $429, $0 and $1,581 | 12,022 | (13,370 | ) | 28,046 | (53,087 | ) | |||||||||
Cash flow hedges, net of income tax benefit (expense) of $229, $185, $1,293 and $1,687 | 4,195 | (14,120 | ) | (22,055 | ) | (17,983 | ) | ||||||||
Actuarial change and amortization of pension and postretirement plans, net of income tax expense of $0, $66, $0 and $404 | 632 | 890 | 1,881 | 2,414 | |||||||||||
Total other comprehensive income (loss) | 16,849 | (26,600 | ) | 7,872 | (68,656 | ) | |||||||||
COMPREHENSIVE INCOME (LOSS) | 57,473 | (7,419 | ) | 175,133 | (34,155 | ) | |||||||||
Less: Comprehensive income (loss) attributable to noncontrolling interest | 3,649 | (5,363 | ) | 11,808 | (18,884 | ) | |||||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO RAYONIER INC. | $53,824 | ($2,056 | ) | $163,325 | ($15,271 | ) | |||||||||
EARNINGS PER COMMON SHARE (Note 11) | |||||||||||||||
Basic earnings per share attributable to Rayonier Inc. | $0.32 | $0.16 | $1.34 | $0.28 | |||||||||||
Diluted earnings per share attributable to Rayonier Inc. | $0.32 | $0.16 | $1.33 | $0.28 | |||||||||||
Dividends declared per share | $0.25 | $0.25 | $0.75 | $0.75 |
September 30, 2016 | December 31, 2015 | ||||||
ASSETS | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | $110,039 | $51,777 | |||||
Accounts receivable, less allowance for doubtful accounts of $35 and $42 | 24,731 | 20,222 | |||||
Inventory (Note 16) | 16,064 | 15,351 | |||||
Prepaid expenses | 12,564 | 12,654 | |||||
Assets held for sale (Note 18) | 47,361 | — | |||||
Other current assets | 3,369 | 5,681 | |||||
Total current assets | 214,128 | 105,685 | |||||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 2,325,489 | 2,066,780 | |||||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (NOTE 6) | 70,324 | 65,450 | |||||
PROPERTY, PLANT AND EQUIPMENT | |||||||
Land | 1,832 | 1,833 | |||||
Buildings | 9,673 | 9,014 | |||||
Machinery and equipment | 3,469 | 3,686 | |||||
Construction in progress | 4,993 | 1,282 | |||||
Total property, plant and equipment, gross | 19,967 | 15,815 | |||||
Less — accumulated depreciation | (8,891 | ) | (9,073 | ) | |||
Total property, plant and equipment, net | 11,076 | 6,742 | |||||
OTHER ASSETS | 50,381 | 71,281 | |||||
TOTAL ASSETS | $2,671,398 | $2,315,938 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
CURRENT LIABILITIES | |||||||
Accounts payable | $23,735 | $21,479 | |||||
Current maturities of long-term debt | 31,752 | — | |||||
Accrued taxes | 6,892 | 3,685 | |||||
Accrued payroll and benefits | 6,224 | 7,037 | |||||
Accrued interest | 8,313 | 6,153 | |||||
Other current liabilities | 23,227 | 21,103 | |||||
Total current liabilities | 100,143 | 59,457 | |||||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 1,033,288 | 830,554 | |||||
PENSION AND OTHER POSTRETIREMENT BENEFITS (Note 14) | 34,702 | 34,137 | |||||
OTHER NON-CURRENT LIABILITIES | 54,684 | 30,050 | |||||
COMMITMENTS AND CONTINGENCIES (Notes 7 and 9) | |||||||
SHAREHOLDERS’ EQUITY | |||||||
Common Shares, 480,000,000 shares authorized, 122,876,035 and 122,770,217 shares issued and outstanding | 707,977 | 708,827 | |||||
Retained earnings | 683,596 | 612,760 | |||||
Accumulated other comprehensive loss | (30,388 | ) | (33,503 | ) | |||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,361,185 | 1,288,084 | |||||
Noncontrolling interest | 87,396 | 73,656 | |||||
TOTAL SHAREHOLDERS’ EQUITY | 1,448,581 | 1,361,740 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $2,671,398 | $2,315,938 |
Common Shares | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Non-controlling Interest | Shareholders’ Equity | ||||||||||||||||||
Shares | Amount | |||||||||||||||||||||
Balance, December 31, 2014 | 126,773,097 | $702,598 | $790,697 | ($4,825 | ) | $86,681 | $1,575,151 | |||||||||||||||
Net income (loss) | — | — | 46,165 | — | (2,224 | ) | 43,941 | |||||||||||||||
Dividends ($1.00 per share) | — | — | (124,943 | ) | — | — | (124,943 | ) | ||||||||||||||
Issuance of shares under incentive stock plans | 205,219 | 2,117 | — | — | — | 2,117 | ||||||||||||||||
Stock-based compensation | — | 4,484 | — | — | — | 4,484 | ||||||||||||||||
Tax deficiency on stock-based compensation | — | (250 | ) | — | — | — | (250 | ) | ||||||||||||||
Repurchase of common shares | (4,208,099 | ) | (122 | ) | (100,000 | ) | — | — | (100,122 | ) | ||||||||||||
Net gain from pension and postretirement plans | — | — | — | 2,933 | — | 2,933 | ||||||||||||||||
Adjustments to Rayonier Advanced Materials | — | — | 841 | — | — | 841 | ||||||||||||||||
Foreign currency translation adjustment | — | — | — | (21,567 | ) | (10,884 | ) | (32,451 | ) | |||||||||||||
Cash flow hedges | — | — | — | (10,044 | ) | 83 | (9,961 | ) | ||||||||||||||
Balance, December 31, 2015 | 122,770,217 | $708,827 | $612,760 | ($33,503 | ) | $73,656 | $1,361,740 | |||||||||||||||
Net income | — | — | 163,648 | — | 3,613 | 167,261 | ||||||||||||||||
Dividends ($0.75 per share) | — | — | (92,122 | ) | — | — | (92,122 | ) | ||||||||||||||
Issuance of shares under incentive stock plans | 149,666 | 889 | — | — | — | 889 | ||||||||||||||||
Stock-based compensation | — | 3,894 | — | — | — | 3,894 | ||||||||||||||||
Repurchase of common shares | (43,848 | ) | (139 | ) | (690 | ) | — | — | (829 | ) | ||||||||||||
Actuarial change and amortization of pension and postretirement plan liabilities | — | — | — | 1,881 | — | 1,881 | ||||||||||||||||
Foreign currency translation adjustment | — | — | — | 20,527 | 7,519 | 28,046 | ||||||||||||||||
Cash flow hedges | — | — | (22,731 | ) | 676 | (22,055 | ) | |||||||||||||||
Recapitalization of New Zealand Joint Venture | — | (5,398 | ) | — | 3,438 | 1,960 | — | |||||||||||||||
Recapitalization costs | — | (96 | ) | — | — | (28 | ) | (124 | ) | |||||||||||||
Balance, September 30, 2016 | 122,876,035 | $707,977 | $683,596 | ($30,388 | ) | $87,396 | $1,448,581 |
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
OPERATING ACTIVITIES | |||||||
Net income | $167,261 | $34,501 | |||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||
Depreciation, depletion and amortization | 83,685 | 85,784 | |||||
Non-cash cost of land and improved development | 10,111 | 9,532 | |||||
Stock-based incentive compensation expense | 3,894 | 3,522 | |||||
Deferred income taxes | 4,472 | (4,745 | ) | ||||
Non-cash adjustments to unrecognized tax benefit liability | — | 135 | |||||
Amortization of losses from pension and postretirement plans | 1,881 | 2,818 | |||||
Gain on sale of large disposition of timberlands | (101,325 | ) | — | ||||
Other | (251 | ) | 2,336 | ||||
Changes in operating assets and liabilities: | |||||||
Receivables | (3,897 | ) | 1,895 | ||||
Inventories | (4,591 | ) | (9,403 | ) | |||
Accounts payable | 583 | 1,854 | |||||
Income tax receivable/payable | (47 | ) | (947 | ) | |||
All other operating activities | 2,132 | 16,121 | |||||
CASH PROVIDED BY OPERATING ACTIVITIES | 163,908 | 143,403 | |||||
INVESTING ACTIVITIES | |||||||
Capital expenditures | (40,246 | ) | (37,211 | ) | |||
Real estate development investments | (4,815 | ) | (2,029 | ) | |||
Purchase of timberlands | (353,828 | ) | (88,466 | ) | |||
Assets purchased in business acquisition | (1,113 | ) | — | ||||
Net proceeds from large disposition of timberlands | 126,965 | — | |||||
Rayonier office building under construction | (3,933 | ) | (369 | ) | |||
Change in restricted cash | 22,430 | (17,835 | ) | ||||
Other | 444 | 3,039 | |||||
CASH USED FOR INVESTING ACTIVITIES | (254,096 | ) | (142,871 | ) | |||
FINANCING ACTIVITIES | |||||||
Issuance of debt | 694,096 | 379,027 | |||||
Repayment of debt | (454,419 | ) | (300,871 | ) | |||
Dividends paid | (92,095 | ) | (94,280 | ) | |||
Proceeds from the issuance of common shares | 889 | 1,322 | |||||
Repurchase of common shares made under share repurchase program | (690 | ) | (73,621 | ) | |||
Debt issuance costs | (818 | ) | (1,678 | ) | |||
Other | (139 | ) | — | ||||
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 146,824 | (90,101 | ) | ||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 1,626 | (6,234 | ) | ||||
CASH AND CASH EQUIVALENTS | |||||||
Change in cash and cash equivalents | 58,262 | (95,803 | ) | ||||
Balance, beginning of year | 51,777 | 161,558 | |||||
Balance, end of period | $110,039 | $65,755 | |||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||
Cash paid during the period: | |||||||
Interest (a) | $23,540 | $21,944 | |||||
Income taxes | 495 | 421 | |||||
Non-cash investing activity: | |||||||
Capital assets purchased on account | 4,376 | 1,945 |
(a) | Interest paid is presented net of patronage payments received of $0.4 million and $1.3 million for the nine months ended September 30, 2016 and September 30, 2015, respectively. For additional information on patronage payments, see Note 5 — Debt in the 2015 Form 10-K. |
1. | BASIS OF PRESENTATION |
2. | TIMBERLAND ACQUISITION |
May 10, 2016 | |||
Timber and timberlands (a) | $263,073 | ||
Property, plant and equipment | 1,554 | ||
Other current and non-current assets | 280 | ||
Total identifiable assets acquired | 264,907 | ||
Other current and non-current liabilities | 1,503 | ||
Total liabilities assumed | 1,503 | ||
Net identifiable assets (purchase price) | $263,404 |
(a) | Timber and timberlands include $0.8 million of seeds and seedlings. |
3. | JOINT VENTURE INVESTMENT |
4. | SEGMENT AND GEOGRAPHICAL INFORMATION |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
SALES | 2016 | 2015 | 2016 | 2015 | |||||||||||
Southern Timber | $27,826 | $34,797 | $102,205 | $103,009 | |||||||||||
Pacific Northwest Timber | 16,139 | 21,549 | 52,316 | 57,805 | |||||||||||
New Zealand Timber | 42,179 | 41,065 | 125,951 | 121,482 | |||||||||||
Real Estate (a) | 60,626 | 35,232 | 211,296 | 65,968 | |||||||||||
Trading | 24,651 | 19,014 | 76,046 | 59,500 | |||||||||||
Total | $171,421 | $151,657 | $567,814 | $407,764 |
(a) | The nine months ended September 30, 2016 include $129.5 million from the Washington disposition. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
OPERATING INCOME (LOSS) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Southern Timber | $8,183 | $10,504 | $34,976 | $34,694 | |||||||||||
Pacific Northwest Timber | (3,293 | ) | 3,081 | (874 | ) | 7,356 | |||||||||
New Zealand Timber | 6,613 | (915 | ) | 21,385 | 3,834 | ||||||||||
Real Estate (a) | 43,078 | 20,001 | 152,997 | 34,004 | |||||||||||
Trading | 481 | 428 | 1,456 | 614 | |||||||||||
Corporate and other | (5,373 | ) | (5,320 | ) | (15,687 | ) | (18,452 | ) | |||||||
Total Operating Income | 49,689 | 27,779 | 194,253 | 62,050 | |||||||||||
Unallocated interest expense and other | (8,286 | ) | (9,139 | ) | (24,718 | ) | (28,858 | ) | |||||||
Total Income before Income Taxes | $41,403 | $18,640 | $169,535 | $33,192 |
(a) | The nine months ended September 30, 2016 include $101.3 million from the Washington disposition. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
DEPRECIATION, DEPLETION AND AMORTIZATION | 2016 | 2015 | 2016 | 2015 | |||||||||||
Southern Timber | $9,988 | $14,404 | $37,102 | $41,356 | |||||||||||
Pacific Northwest Timber | 6,668 | 4,189 | 14,978 | 10,920 | |||||||||||
New Zealand Timber | 5,956 | 7,021 | 17,252 | 22,207 | |||||||||||
Real Estate (a) | 9,260 | 6,269 | 35,988 | 11,087 | |||||||||||
Trading | — | — | — | — | |||||||||||
Corporate and other | 106 | 75 | 298 | 214 | |||||||||||
Total | $31,978 | $31,958 | $105,618 | $85,784 |
(a) | The nine months ended September 30, 2016 include $21.9 million from the Washington disposition. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT | 2016 | 2015 | 2016 | 2015 | |||||||||||
Southern Timber | — | — | — | — | |||||||||||
Pacific Northwest Timber | — | — | — | — | |||||||||||
New Zealand Timber | — | — | 1,824 | — | |||||||||||
Real Estate (a) | 4,336 | 4,594 | 10,092 | 9,532 | |||||||||||
Trading | — | — | — | — | |||||||||||
Corporate and other | — | — | — | — | |||||||||||
Total | $4,336 | $4,594 | $11,916 | $9,532 |
(a) | The nine months ended September 30, 2016 include $1.8 million from the Washington disposition. |
5. | DEBT |
September 30, 2016 | |||
Senior Notes due 2022 at a fixed interest rate of 3.75% | $325,000 | ||
Term Credit Agreement borrowings due 2024 at a variable interest rate of 2.1% at September 30, 2016 | 350,000 | ||
Incremental Term Loan Agreement borrowings due 2026 at a variable interest rate of 2.4% at September 30, 2016 | 300,000 | ||
Mortgage notes due 2017 at fixed interest rates of 4.35% | 31,752 | ||
Revolving Credit Facility borrowings due 2020 at a variable interest rate of 1.8% at September 30, 2016 | 25,000 | ||
Solid waste bond due 2020 at a variable interest rate of 2.1% at September 30, 2016 | 15,000 | ||
New Zealand JV noncontrolling interest shareholder loan at 0% interest rate | 22,022 | ||
Total debt | 1,068,774 | ||
Less: Current maturities of long-term debt | (31,752 | ) | |
Less: Deferred financing costs | (3,734 | ) | |
Long-term debt, net of deferred financing costs | $1,033,288 |
2016 | — | ||
2017 (a) | 31,500 | ||
2018 | — | ||
2019 | — | ||
2020 | 40,000 | ||
Thereafter | 997,022 | ||
Total Debt | $1,068,522 |
(a) | The mortgage notes due in 2017 were recorded at a premium of $0.3 million as of September 30, 2016. Upon maturity the liability will be $31.5 million. |
6. | HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS |
Higher and Better Use Timberlands and Real Estate Development Investments | |||||||||||
Land and Timber | Development Investments | Total | |||||||||
Non-current portion at December 31, 2015 | $57,897 | $7,553 | $65,450 | ||||||||
Plus: Current portion (a) | 6,019 | 6,233 | 12,252 | ||||||||
Total Balance at December 31, 2015 | 63,916 | 13,786 | 77,702 | ||||||||
Non-cash cost of land and improved development | (1,612 | ) | (151 | ) | (1,763 | ) | |||||
Timber depletion from harvesting activities and basis of timber sold in real estate sales | (1,123 | ) | — | (1,123 | ) | ||||||
Capitalized real estate development investments (b) | — | 4,815 | 4,815 | ||||||||
Capital expenditures (silviculture) | 153 | — | 153 | ||||||||
Intersegment transfers | 4 | — | 4 | ||||||||
Total Balance at September 30, 2016 | 61,338 | 18,450 | 79,788 | ||||||||
Less: Current portion (a) | (3,930 | ) | (5,534 | ) | (9,464 | ) | |||||
Non-current portion at September 30, 2016 | $57,408 | $12,916 | $70,324 |
(a) | The current portion of Higher and Better Use Timberlands and Real Estate Development Investments is recorded in Inventory. See Note 16 — Inventory for additional information. |
(b) | Capitalized real estate development investments includes $0.1 million of capitalized interest. |
7. | COMMITMENTS |
Operating Leases | Timberland Leases (a) | Commitments (b) | Total | ||||||||||||
Remaining 2016 | $518 | $3,838 | $5,120 | $9,476 | |||||||||||
2017 | 1,657 | 10,594 | 13,786 | 26,037 | |||||||||||
2018 | 902 | 9,443 | 9,193 | 19,538 | |||||||||||
2019 | 725 | 8,966 | 9,193 | 18,884 | |||||||||||
2020 | 605 | 8,553 | 9,193 | 18,351 | |||||||||||
Thereafter (c) | 1,770 | 163,003 | 37,393 | 202,166 | |||||||||||
$6,177 | $204,397 | $83,878 | $294,452 |
(a) | The majority of timberland leases are subject to increases or decreases based on either the Consumer Price Index, Producer Price Index or market rates. |
(b) | Commitments include payments expected to be made on derivative financial instruments (foreign exchange contracts and interest rate swaps), standby letters of credit fees for industrial revenue bonds and construction of the Company’s office building. |
(c) | Includes 20 years of future minimum payments for perpetual Crown Forest Licenses (“CFL”). A CFL consists of a license to use public or government owned land to operate a commercial forest. The CFL's extend indefinitely and may only be terminated upon a 35-year termination notice from the government. If no termination notice is given, the CFLs renew automatically each year for a one-year term. As of September 30, 2016, the New Zealand JV has four CFL’s under termination notice, terminating in 2034, two in 2044 and 2049 as well as two fixed-term CFL’s expiring in 2062. The annual license fee is determined based on current market rental value, with triennial rent reviews. |
8. | INCOME TAXES |
Three Months Ended September 30, | |||||||||||||
2016 | 2015 | ||||||||||||
Income tax expense at federal statutory rate | $14,491 | 35.0 | % | $6,524 | 35.0 | % | |||||||
U.S. and foreign REIT income & U.S. TRS taxable losses | (11,487 | ) | (27.7 | ) | (9,259 | ) | (49.6 | ) | |||||
Foreign TRS operations | (312 | ) | (0.8 | ) | (1,466 | ) | (7.9 | ) | |||||
U.S. net deferred tax asset valuation allowance | (1,741 | ) | (4.2 | ) | 2,742 | 14.7 | |||||||
Other | (70 | ) | (0.2 | ) | 90 | 0.5 | |||||||
Income tax expense (benefit) before discrete items | $881 | 2.1 | % | ($1,369 | ) | (7.3 | )% | ||||||
CBPC(a) valuation allowance | — | — | 997 | 5.3 | |||||||||
Return-to-accrual adjustments | (171 | ) | (0.4 | ) | (169 | ) | (0.9 | ) | |||||
Other | 69 | 0.2 | — | — | |||||||||
Income tax expense (benefit) as reported | $779 | 1.9 | % | ($541 | ) | (2.9 | )% |
Nine Months Ended September 30, | |||||||||||||
2016 | 2015 | ||||||||||||
Income tax expense at federal statutory rate | $59,337 | 35.0 | % | $11,617 | 35.0 | % | |||||||
U.S. and foreign REIT income & U.S. TRS taxable losses | (55,801 | ) | (32.9 | ) | (16,260 | ) | (48.9 | ) | |||||
Foreign TRS operations | (626 | ) | (0.4 | ) | (3,029 | ) | (9.1 | ) | |||||
U.S. net deferred tax asset valuation allowance | 2,654 | 1.6 | 5,360 | 16.1 | |||||||||
Other | 137 | 0.1 | 175 | 0.5 | |||||||||
Income tax expense (benefit) before discrete items | $5,701 | 3.4 | % | ($2,137 | ) | (6.4 | )% | ||||||
CBPC(a) valuation allowance | — | — | 997 | 3.0 | |||||||||
Tax benefit recognized related to changes in the New Zealand JV deferred tax inventory | (1,833 | ) | (1.1 | ) | — | — | |||||||
Purchase accounting deferred tax benefit | (1,423 | ) | (0.9 | ) | — | — | |||||||
Return-to-accrual adjustments | (171 | ) | (0.1 | ) | (169 | ) | (0.5 | ) | |||||
Income tax expense (benefit) as reported | $2,274 | 1.3 | % | ($1,309 | ) | (3.9 | )% |
9. | CONTINGENCIES |
• | Sating v. Rayonier Inc. et al, Civil Action No. 3:14-cv-01395; filed November 12, 2014 in the United States District Court for the Middle District of Florida; |
• | Keasler v. Rayonier Inc. et al, Civil Action No. 3:14-cv-01398, filed November 13, 2014 in the United States District Court for the Middle District of Florida; |
• | Lake Worth Firefighters’ Pension Trust Fund v. Rayonier Inc. et al, Civil Action No. 3:14-cv-01403, filed November 13, 2014 in the United States District Court for the Middle District of Florida; |
• | Christie v. Rayonier Inc. et al, Civil Action No. 3:14-cv-01429, filed November 21, 2014 in the United States District Court for the Middle District of Florida; and |
• | Brown v. Rayonier Inc. et al, Civil Action No. 1:14-cv-08986, initially filed in the United States District Court for the Southern District of New York and later transferred to the United States District Court for the Middle District of Florida and assigned as Civil Action No. 3:14-cv-01474. |
10. | GUARANTEES |
Financial Commitments | Maximum Potential Payment | Carrying Amount of Associated Liability | ||||||
Standby letters of credit (a) | $20,642 | $15,000 | ||||||
Guarantees (b) | 2,254 | 43 | ||||||
Surety bonds (c) | 771 | — | ||||||
Total financial commitments | $23,667 | $15,043 |
(a) | Approximately $15 million of the standby letters of credit serve as credit support for industrial revenue bonds. Approximately $3.8 million of the standby letters of credit serve as credit support for infrastructure at the Company’s Wildlight development project. The remaining letters of credit support various insurance related agreements, primarily workers’ compensation. These letters of credit will expire at various dates during 2016 and 2017 and will be renewed as required. |
(b) | In conjunction with a timberland sale and note monetization in 2004, the Company issued a make-whole agreement pursuant to which it guaranteed $2.3 million of obligations of a special-purpose entity that was established to complete the monetization. At September 30, 2016, the Company has a de minimis liability to reflect the fair market value of its obligation to perform under the make-whole agreement. |
(c) | Rayonier issues surety bonds primarily to secure timber harvesting obligations in the State of Washington and to provide collateral for the Company’s workers’ compensation self-insurance program in that state. Rayonier has also obtained performance bonds to secure the development activity at the Company’s Wildlight development project. These surety bonds expire at various dates during 2017 and are expected to be renewed as required. |
11. | EARNINGS PER COMMON SHARE |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net Income | $40,624 | $19,181 | $167,261 | $34,501 | |||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 1,269 | (488 | ) | 3,613 | (1,379 | ) | |||||||||
Net income attributable to Rayonier Inc. | $39,355 | $19,669 | $163,648 | $35,880 | |||||||||||
Shares used for determining basic earnings per common share | 122,597,927 | 125,143,706 | 122,574,094 | 126,125,802 | |||||||||||
Dilutive effect of: | |||||||||||||||
Stock options | 113,849 | 91,495 | 88,594 | 129,906 | |||||||||||
Performance and restricted shares | 170,857 | 31,051 | 120,212 | 37,064 | |||||||||||
Assumed conversion of Senior Exchangeable Notes (a) | — | 39,720 | — | 477,931 | |||||||||||
Shares used for determining diluted earnings per common share | 122,882,633 | 125,305,972 | 122,782,900 | 126,770,703 | |||||||||||
Basic earnings per common share attributable to Rayonier Inc.: | $0.32 | $0.16 | $1.34 | $0.28 | |||||||||||
Diluted earnings per common share attributable to Rayonier Inc.: | $0.32 | $0.16 | $1.33 | $0.28 |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
Anti-dilutive shares excluded from the computations of diluted earnings per share: | |||||||||||
Stock options, performance and restricted shares | 745,878 | 994,549 | 863,244 | 906,582 | |||||||
Assumed conversion of exchangeable note hedges (a) | — | 39,720 | — | 477,931 | |||||||
Total | 745,878 | 1,034,269 | 863,244 | 1,384,513 |
12. | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES |
Three Months Ended September 30, | |||||||||
Income Statement Location | 2016 | 2015 | |||||||
Derivatives designated as cash flow hedges: | |||||||||
Foreign currency exchange contracts | Other comprehensive income (loss) | $259 | ($289 | ) | |||||
Foreign currency option contracts | Other comprehensive income (loss) | 635 | (788 | ) | |||||
Interest rate swaps | Other comprehensive income (loss) | 3,529 | (13,644 | ) | |||||
Derivatives designated as a net investment hedge: | |||||||||
Foreign currency exchange contract | Other comprehensive income (loss) | — | 1,151 | ||||||
Foreign currency option contracts | Other comprehensive income (loss) | — | 2,084 | ||||||
Derivatives not designated as hedging instruments: | |||||||||
Foreign currency option contracts | Other operating income, net | — | 847 | ||||||
Interest rate swaps | Interest income and miscellaneous income (expense), net | — | (1,650 | ) |
Nine Months Ended September 30, | |||||||||
Income Statement Location | 2016 | 2015 | |||||||
Derivatives designated as cash flow hedges: | |||||||||
Foreign currency exchange contracts | Other comprehensive income (loss) | $2,075 | ($2,597 | ) | |||||
Foreign currency option contracts | Other comprehensive income (loss) | 2,564 | (4,127 | ) | |||||
Interest rate swaps | Other comprehensive income (loss) | (25,459 | ) | (13,644 | ) | ||||
Derivatives designated as a net investment hedge: | |||||||||
Foreign currency exchange contract | Other comprehensive income (loss) | (4,606 | ) | 4,258 | |||||
Foreign currency option contracts | Other comprehensive (loss) income | — | 2,084 | ||||||
Derivatives not designated as hedging instruments: | |||||||||
Foreign currency exchange contracts | Other operating income, net | 895 | — | ||||||
Foreign currency option contracts | Other operating income, net | 258 | 1,394 | ||||||
Interest rate swaps | Interest income and miscellaneous income (expense), net | (1,219 | ) | 4,923 |
Notional Amount | |||||||
September 30, 2016 | December 31, 2015 | ||||||
Derivatives designated as cash flow hedges: | |||||||
Foreign currency exchange contracts | $25,390 | $21,250 | |||||
Foreign currency option contracts | 70,500 | 107,200 | |||||
Interest rate swaps | 650,000 | 350,000 | |||||
Derivatives designated as net investment hedges: | |||||||
Foreign currency option contracts | — | 331,588 | |||||
Derivative not designated as a hedging instrument: | |||||||
Interest rate swaps | — | 130,169 |
Location on Balance Sheet | Fair Value Assets / (Liabilities) (a) | ||||||||
September 30, 2016 | December 31, 2015 | ||||||||
Derivatives designated as cash flow hedges: | |||||||||
Foreign currency exchange contracts | Other current assets | $1,173 | $43 | ||||||
Other assets | 142 | — | |||||||
Other current liabilities | (342 | ) | (1,449 | ) | |||||
Other non-current liabilities | — | (219 | ) | ||||||
Foreign currency option contracts | Other current assets | 1,909 | 560 | ||||||
Other assets | 243 | 408 | |||||||
Other current liabilities | (173 | ) | (1,393 | ) | |||||
Other non-current liabilities | (59 | ) | (217 | ) | |||||
Interest rate swaps | Other non-current liabilities | (35,655 | ) | (10,197 | ) | ||||
Derivatives designated as net investment hedges: | |||||||||
Foreign currency option contracts | Other current assets | — | 4,630 | ||||||
Other current liabilities | — | (24 | ) | ||||||
Derivative not designated as a hedging instrument: | |||||||||
Interest rate swaps | Other non-current liabilities | — | (8,047 | ) | |||||
Total derivative contracts: | |||||||||
Other current assets | $3,082 | $5,233 | |||||||
Other assets | 385 | 408 | |||||||
Total derivative assets | $3,467 | $5,641 | |||||||
Other current liabilities | (515 | ) | (2,866 | ) | |||||
Other non-current liabilities | (35,714 | ) | (18,680 | ) | |||||
Total derivative liabilities | ($36,229 | ) | ($21,546 | ) |
(a) | See Note 13 — Fair Value Measurements for further information on the fair value of the Company’s derivatives including their classification within the fair value hierarchy. |
13. | FAIR VALUE MEASUREMENTS |
September 30, 2016 | December 31, 2015 | ||||||||||||||||||||
Asset (Liability) (a) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||
Level 1 | Level 2 | Level 1 | Level 2 | ||||||||||||||||||
Cash and cash equivalents | $110,039 | $110,039 | — | $51,777 | $51,777 | — | |||||||||||||||
Restricted cash (b) | 1,095 | 1,095 | — | 23,525 | 23,525 | — | |||||||||||||||
Current maturities of long-term debt | (31,752 | ) | — | (32,403 | ) | — | — | — | |||||||||||||
Long-term debt (c) | (1,033,288 | ) | — | (1,049,210 | ) | (830,554 | ) | — | (830,203 | ) | |||||||||||
Interest rate swaps (d) | (35,655 | ) | — | (35,655 | ) | (18,244 | ) | — | (18,244 | ) | |||||||||||
Foreign currency exchange contracts (d) | 973 | — | 973 | (1,625 | ) | — | (1,625 | ) | |||||||||||||
Foreign currency option contracts (d) | 1,920 | — | 1,920 | 3,964 | — | 3,964 |
(a) | The Company did not have Level 3 assets or liabilities at September 30, 2016. |
(b) | Restricted cash is recorded in “Other Assets” and represents the proceeds from like-kind exchange sales deposited with a third-party intermediary and cash held in escrow for a real estate sale. See Note 17 — Restricted Deposits for additional information regarding restricted cash. |
(c) | The carrying amount of long-term debt is presented net of capitalized debt costs on non-revolving debt. See Note 1 — Basis of Presentation for additional information. |
(d) | See Note 12 — Derivative Financial Instruments and Hedging Activities for information regarding the Balance Sheet classification of the Company’s derivative financial instruments. |
14. | EMPLOYEE BENEFIT PLANS |
Pension | Postretirement | ||||||||||||||
Three Months Ended September 30, | Three Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||
Service cost | $327 | $371 | $2 | $3 | |||||||||||
Interest cost | 869 | 830 | 12 | 13 | |||||||||||
Expected return on plan assets | (1,008 | ) | (1,007 | ) | — | — | |||||||||
Amortization of prior service cost | — | 3 | — | — | |||||||||||
Amortization of losses | 632 | 950 | — | 3 | |||||||||||
Net periodic benefit cost | $820 | $1,147 | $14 | $19 | |||||||||||
Pension | Postretirement | ||||||||||||||
Nine Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Components of Net Periodic Benefit Cost | |||||||||||||||
Service cost | $980 | $1,113 | $5 | $8 | |||||||||||
Interest cost | 2,606 | 2,489 | 36 | 39 | |||||||||||
Expected return on plan assets | (3,023 | ) | (3,020 | ) | — | — | |||||||||
Amortization of prior service cost | — | 10 | — | — | |||||||||||
Amortization of losses (gains) | 1,893 | 2,799 | (12 | ) | 9 | ||||||||||
Net periodic benefit cost | $2,456 | $3,391 | $29 | $56 | |||||||||||
15. | OTHER OPERATING INCOME, NET |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Lease income, primarily from hunting leases | $3,769 | $4,349 | $13,991 | $14,348 | |||||||||||
Other non-timber income | 666 | 581 | 1,721 | 2,634 | |||||||||||
Foreign currency income (loss) | 533 | (149 | ) | 34 | 67 | ||||||||||
Gain on sale or disposal of property and equipment | 58 | 4 | 81 | 6 | |||||||||||
Loss on foreign currency exchange and option contracts | (333 | ) | (2,297 | ) | (1,406 | ) | (3,290 | ) | |||||||
Deferred payment related to a prior land sale | — | — | 4,000 | — | |||||||||||
Costs related to acquisition | (91 | ) | — | (1,306 | ) | — | |||||||||
Gain on foreign currency derivatives (a) | — | — | 1,153 | — | |||||||||||
Gain on sale of carbon credits | 359 | — | 1,113 | 352 | |||||||||||
Miscellaneous income, net | 538 | 367 | 1,486 | 1,450 | |||||||||||
Total | $5,499 | $2,855 | $20,867 | $15,567 |
(a) | The Company used foreign exchange derivatives to mitigate the risk of fluctuations in foreign exchange rates while awaiting the capital contribution to the New Zealand JV. |
16. | INVENTORY |
September 30, 2016 | December 31, 2015 | ||||||
Finished goods inventory | |||||||
Real estate inventory (a) | $9,464 | $12,252 | |||||
Log inventory | 6,600 | 3,099 | |||||
Total inventory | $16,064 | $15,351 |
(a) | Represents cost of HBU real estate (including capitalized development investments) expected to be sold within 12 |
17. | RESTRICTED DEPOSITS |
18. | ASSETS HELD FOR SALE |
19. | ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) |
Foreign currency translation gains/ (losses) | Net investment hedges of New Zealand JV | Cash flow hedges | Employee benefit plans | Total | |||||||||||||||
Balance as of December 31, 2014 | $25,533 | ($145 | ) | ($1,548 | ) | ($28,665 | ) | ($4,825 | ) | ||||||||||
Other comprehensive income/(loss) before reclassifications | (27,983 | ) | 6,416 | (14,444 | ) | (a) | (354 | ) | (36,365 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive loss | — | — | 4,400 | 3,287 | (b) | 7,687 | |||||||||||||
Net other comprehensive income/(loss) | (27,983 | ) | 6,416 | (10,044 | ) | 2,933 | (28,678 | ) | |||||||||||
Balance as of December 31, 2015 | ($2,450 | ) | $6,271 | ($11,592 | ) | ($25,732 | ) | ($33,503 | ) | ||||||||||
Other comprehensive income/(loss) before reclassifications | 25,133 | — | (22,954 | ) | (c) | — | 2,179 | ||||||||||||
Amounts reclassified from accumulated other comprehensive loss | — | (4,606 | ) | 223 | 1,881 | (b) | (2,502 | ) | |||||||||||
Net other comprehensive income/(loss) | 25,133 | (4,606 | ) | (22,731 | ) | 1,881 | (323 | ) | |||||||||||
Recapitalization of New Zealand JV | 3,622 | — | (184 | ) | — | 3,438 | |||||||||||||
Balance as of September 30, 2016 | $26,305 | $1,665 | ($34,507 | ) | ($23,851 | ) | ($30,388 | ) |
(a) | Includes $10.2 million of other comprehensive loss related to interest rate swaps entered into in the third quarter 2015. See Note 12 — Derivative Financial Instruments and Hedging Activities for additional information. |
(b) | This component of other comprehensive income is included in the computation of net periodic pension cost. See Note 14 — Employee Benefit Plans for additional information. |
(c) | Includes $25.5 million of other comprehensive loss related to interest rate swaps. See Note 12 — Derivative Financial Instruments and Hedging Activities for additional information. |
Details about accumulated other comprehensive income components | Amount reclassified from accumulated other comprehensive income | Affected line item in the income statement | ||||||||
September 30, 2016 | September 30, 2015 | |||||||||
Realized loss on foreign currency exchange contracts | $43 | $3,928 | Other operating income, net | |||||||
Realized loss on foreign currency option contracts | 502 | 3,149 | Other operating income, net | |||||||
Noncontrolling interest | (235 | ) | (2,477 | ) | Comprehensive income (loss) attributable to noncontrolling interest | |||||
Income tax benefit on loss from foreign currency contracts | (87 | ) | (1,288 | ) | Income tax (expense) benefit | |||||
Net loss from accumulated other comprehensive income | $223 | $3,312 |
20. | CONSOLIDATING FINANCIAL STATEMENTS |
CONDENSED CONSOLIDATING STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||
For the Three Months Ended September 30, 2016 | |||||||||||||||||||
Rayonier Inc. (Parent Issuer) | Subsidiary Guarantors | Non- guarantors | Consolidating Adjustments | Total Consolidated | |||||||||||||||
SALES | — | — | $171,421 | — | $171,421 | ||||||||||||||
Costs and Expenses | |||||||||||||||||||
Cost of sales | — | — | 116,624 | — | 116,624 | ||||||||||||||
Selling and general expenses | — | 5,904 | 4,703 | — | 10,607 | ||||||||||||||
Other operating expense (income), net | — | 190 | (5,689 | ) | — | (5,499 | ) | ||||||||||||
— | 6,094 | 115,638 | — | 121,732 | |||||||||||||||
OPERATING (LOSS) INCOME | — | (6,094 | ) | 55,783 | — | 49,689 | |||||||||||||
Interest expense | (3,139 | ) | (5,150 | ) | (255 | ) | — | (8,544 | ) | ||||||||||
Interest and miscellaneous income (expense), net | 2,199 | 694 | (2,635 | ) | — | 258 | |||||||||||||
Equity in income from subsidiaries | 40,295 | 50,315 | — | (90,610 | ) | — | |||||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 39,355 | 39,765 | 52,893 | (90,610 | ) | 41,403 | |||||||||||||
Income tax benefit (expense) | — | 530 | (1,309 | ) | — | (779 | ) | ||||||||||||
NET INCOME | 39,355 | 40,295 | 51,584 | (90,610 | ) | 40,624 | |||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | 1,269 | — | 1,269 | ||||||||||||||
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 39,355 | 40,295 | 50,315 | (90,610 | ) | 39,355 | |||||||||||||
OTHER COMPREHENSIVE INCOME | |||||||||||||||||||
Foreign currency translation adjustment, net of income tax | 9,793 | — | 12,020 | (9,791 | ) | 12,022 | |||||||||||||
Cash flow hedges, net of income tax | 4,044 | 3,530 | 665 | (4,044 | ) | 4,195 | |||||||||||||
Actuarial change and amortization of pension and postretirement plans, net of income tax | 632 | 632 | — | (632 | ) | 632 | |||||||||||||
Total other comprehensive income | 14,469 | 4,162 | 12,685 | (14,467 | ) | 16,849 | |||||||||||||
COMPREHENSIVE INCOME | 53,824 | 44,457 | 64,269 | (105,077 | ) | 57,473 | |||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | 3,649 | — | 3,649 | ||||||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | $53,824 | $44,457 | $60,620 | ($105,077 | ) | $53,824 | |||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||
For the Three Months Ended September 30, 2015 | |||||||||||||||||||
Rayonier Inc. (Parent Issuer) | Subsidiary Guarantors | Non- guarantors | Consolidating Adjustments | Total Consolidated | |||||||||||||||
SALES | — | — | $151,657 | — | $151,657 | ||||||||||||||
Costs and Expenses | |||||||||||||||||||
Cost of sales | — | — | 116,044 | — | 116,044 | ||||||||||||||
Selling and general expenses | — | 4,412 | 6,277 | — | 10,689 | ||||||||||||||
Other operating income, net | — | 16 | (2,871 | ) | — | (2,855 | ) | ||||||||||||
— | 4,428 | 119,450 | — | 123,878 | |||||||||||||||
OPERATING (LOSS) INCOME | — | (4,428 | ) | 32,207 | — | 27,779 | |||||||||||||
Interest expense | (3,227 | ) | (2,240 | ) | (2,114 | ) | — | (7,581 | ) | ||||||||||
Interest and miscellaneous income (expense), net | 1,980 | 583 | (4,121 | ) | — | (1,558 | ) | ||||||||||||
Equity in income from subsidiaries | 20,916 | 26,647 | — | (47,563 | ) | — | |||||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 19,669 | 20,562 | 25,972 | (47,563 | ) | 18,640 | |||||||||||||
Income tax benefit (expense) | — | 354 | 187 | — | 541 | ||||||||||||||
NET INCOME | 19,669 | 20,916 | 26,159 | (47,563 | ) | 19,181 | |||||||||||||
Less: Net loss attributable to noncontrolling interest | — | — | (488 | ) | — | (488 | ) | ||||||||||||
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 19,669 | 20,916 | 26,647 | (47,563 | ) | 19,669 | |||||||||||||
OTHER COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||
Foreign currency translation adjustment, net of income tax | (8,662 | ) | (8,662 | ) | (13,370 | ) | 17,324 | (13,370 | ) | ||||||||||
Cash flow hedges, net of income tax | (13,954 | ) | (13,954 | ) | (14,120 | ) | 27,908 | (14,120 | ) | ||||||||||
Actuarial change and amortization of pension and postretirement plans, net of income tax | 890 | 890 | 117 | (1,007 | ) | 890 | |||||||||||||
Total other comprehensive loss | (21,726 | ) | (21,726 | ) | (27,373 | ) | 44,225 | (26,600 | ) | ||||||||||
COMPREHENSIVE LOSS | (2,057 | ) | (810 | ) | (1,214 | ) | (3,338 | ) | (7,419 | ) | |||||||||
Less: Comprehensive loss attributable to noncontrolling interest | — | — | (5,363 | ) | — | (5,363 | ) | ||||||||||||
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | ($2,057 | ) | ($810 | ) | $4,149 | ($3,338 | ) | ($2,056 | ) | ||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||
For the Nine Months Ended September 30, 2016 | |||||||||||||||||||
Rayonier Inc. (Parent Issuer) | Subsidiary Guarantors | Non- guarantors | Consolidating Adjustments | Total Consolidated | |||||||||||||||
SALES | — | — | $567,814 | — | $567,814 | ||||||||||||||
Costs and Expenses | |||||||||||||||||||
Cost of sales | — | — | 362,790 | — | 362,790 | ||||||||||||||
Selling and general expenses | — | 11,485 | 20,153 | — | 31,638 | ||||||||||||||
Other operating expense (income), net | — | 378 | (21,245 | ) | — | (20,867 | ) | ||||||||||||
— | 11,863 | 361,698 | — | 373,561 | |||||||||||||||
OPERATING (LOSS) INCOME | — | (11,863 | ) | 206,116 | — | 194,253 | |||||||||||||
Interest expense | (9,417 | ) | (11,678 | ) | (2,508 | ) | — | (23,603 | ) | ||||||||||
Interest and miscellaneous income (expense), net | 6,346 | 2,059 | (9,520 | ) | — | (1,115 | ) | ||||||||||||
Equity in income from subsidiaries | 166,719 | 188,588 | — | (355,307 | ) | — | |||||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 163,648 | 167,106 | 194,088 | (355,307 | ) | 169,535 | |||||||||||||
Income tax expense | — | (387 | ) | (1,887 | ) | — | (2,274 | ) | |||||||||||
NET INCOME | 163,648 | 166,719 | 192,201 | (355,307 | ) | 167,261 | |||||||||||||
Less: Net income attributable to noncontrolling interest | — | — | 3,613 | — | 3,613 | ||||||||||||||
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 163,648 | 166,719 | 188,588 | (355,307 | ) | 163,648 | |||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | — | ||||||||||||||||||
Foreign currency translation adjustment, net of income tax | 20,529 | (4,607 | ) | 32,653 | (20,529 | ) | 28,046 | ||||||||||||
Cash flow hedges, net of income tax | (22,733 | ) | (25,458 | ) | 3,403 | 22,733 | (22,055 | ) | |||||||||||
Actuarial change and amortization of pension and postretirement plans, net of income tax | 1,881 | 1,881 | — | (1,881 | ) | 1,881 | |||||||||||||
Total other comprehensive (loss) income | (323 | ) | (28,184 | ) | 36,056 | 323 | 7,872 | ||||||||||||
COMPREHENSIVE INCOME | 163,325 | 138,535 | 228,257 | (354,984 | ) | 175,133 | |||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | — | — | 11,808 | — | 11,808 | ||||||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | $163,325 | $138,535 | $216,449 | ($354,984 | ) | $163,325 | |||||||||||||
CONDENSED CONSOLIDATING STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||||
For the Nine Months Ended September 30, 2015 | |||||||||||||||||||
Rayonier Inc. (Parent Issuer) | Subsidiary Guarantors | Non- guarantors | Consolidating Adjustments | Total Consolidated | |||||||||||||||
SALES | — | — | $407,764 | — | $407,764 | ||||||||||||||
Costs and Expenses | |||||||||||||||||||
Cost of sales | — | — | 326,966 | — | 326,966 | ||||||||||||||
Selling and general expenses | — | 15,691 | 18,624 | — | 34,315 | ||||||||||||||
Other operating (income) expense, net | — | (445 | ) | (15,122 | ) | — | (15,567 | ) | |||||||||||
— | 15,246 | 330,468 | — | 345,714 | |||||||||||||||
OPERATING (LOSS) INCOME | — | (15,246 | ) | 77,296 | — | 62,050 | |||||||||||||
Interest expense | (9,564 | ) | (7,304 | ) | (7,740 | ) | — | (24,608 | ) | ||||||||||
Interest and miscellaneous income (expense), net | 5,787 | 1,956 | (11,993 | ) | — | (4,250 | ) | ||||||||||||
Equity in income from subsidiaries | 39,657 | 58,010 | — | (97,667 | ) | — | |||||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 35,880 | 37,416 | 57,563 | (97,667 | ) | 33,192 | |||||||||||||
Income tax benefit (expense) | — | 2,241 | (932 | ) | — | 1,309 | |||||||||||||
NET INCOME | 35,880 | 39,657 | 56,631 | (97,667 | ) | 34,501 | |||||||||||||
Less: Net loss attributable to noncontrolling interest | — | — | (1,379 | ) | — | (1,379 | ) | ||||||||||||
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 35,880 | 39,657 | 58,010 | (97,667 | ) | 35,880 | |||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||||||||
Foreign currency translation adjustment, net of income tax | (37,100 | ) | (37,100 | ) | (53,088 | ) | 74,201 | (53,087 | ) | ||||||||||
Cash flow hedges, net of income tax | (16,465 | ) | (16,465 | ) | (17,983 | ) | 32,930 | (17,983 | ) | ||||||||||
Actuarial change and amortization of pension and postretirement plans, net of income tax | 2,414 | 2,414 | 132 | (2,546 | ) | 2,414 | |||||||||||||
Total other comprehensive (loss) income | (51,151 | ) | (51,151 | ) | (70,939 | ) | 104,585 | (68,656 | ) | ||||||||||
COMPREHENSIVE (LOSS) INCOME | (15,271 | ) | (11,494 | ) | (14,308 | ) | 6,918 | (34,155 | ) | ||||||||||
Less: Comprehensive loss attributable to noncontrolling interest | — | — | (18,884 | ) | — | (18,884 | ) | ||||||||||||
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | ($15,271 | ) | ($11,494 | ) | $4,576 | $6,918 | ($15,271 | ) | |||||||||||
CONDENSED CONSOLIDATING BALANCE SHEETS | |||||||||||||||||||
As of September 30, 2016 | |||||||||||||||||||
Rayonier Inc. (Parent Issuer) | Subsidiary Guarantors | Non- guarantors | Consolidating Adjustments | Total Consolidated | |||||||||||||||
ASSETS | |||||||||||||||||||
CURRENT ASSETS | |||||||||||||||||||
Cash and cash equivalents | $59,966 | $5,320 | $44,753 | — | $110,039 | ||||||||||||||
Accounts receivable, less allowance for doubtful accounts | — | 2,050 | 22,681 | — | 24,731 | ||||||||||||||
Inventory | — | — | 16,064 | — | 16,064 | ||||||||||||||
Prepaid expenses | — | 985 | 11,579 | — | 12,564 | ||||||||||||||
Assets held for sale | — | — | 47,361 | — | 47,361 | ||||||||||||||
Other current assets | — | 242 | 3,127 | — | 3,369 | ||||||||||||||
Total current assets | 59,966 | 8,597 | 145,565 | — | 214,128 | ||||||||||||||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | — | — | 2,325,489 | — | 2,325,489 | ||||||||||||||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS | — | — | 70,324 | — | 70,324 | ||||||||||||||
NET PROPERTY, PLANT AND EQUIPMENT | — | 213 | 10,863 | — | 11,076 | ||||||||||||||
INVESTMENT IN SUBSIDIARIES | 1,339,173 | 2,644,299 | — | (3,983,472 | ) | — | |||||||||||||
INTERCOMPANY RECEIVABLE | 23,396 | (606,285 | ) | 582,889 | — | — | |||||||||||||
OTHER ASSETS | 3 | 21,937 | 28,441 | — | 50,381 | ||||||||||||||
TOTAL ASSETS | $1,422,538 | $2,068,761 | $3,163,571 | ($3,983,472 | ) | $2,671,398 | |||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
CURRENT LIABILITIES | |||||||||||||||||||
Accounts payable | — | $2,106 | $21,629 | — | $23,735 | ||||||||||||||
Current maturities of long-term debt | 31,752 | — | — | — | 31,752 | ||||||||||||||
Accrued taxes | — | (149 | ) | 7,041 | — | 6,892 | |||||||||||||
Accrued payroll and benefits | — | 3,115 | 3,109 | — | 6,224 | ||||||||||||||
Accrued interest | 6,094 | 1,960 | 259 | — | 8,313 | ||||||||||||||
Other current liabilities | — | 372 | 22,855 | — | 23,227 | ||||||||||||||
Total current liabilities | 37,846 | 7,404 | 54,893 | — | 100,143 | ||||||||||||||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 291,222 | 663,292 | 78,774 | — | 1,033,288 | ||||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFITS | — | 35,386 | (684 | ) | — | 34,702 | |||||||||||||
OTHER NON-CURRENT LIABILITIES | — | 42,466 | 12,218 | — | 54,684 | ||||||||||||||
INTERCOMPANY PAYABLE | (267,715 | ) | (18,960 | ) | 286,675 | — | — | ||||||||||||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,361,185 | 1,339,173 | 2,644,299 | (3,983,472 | ) | 1,361,185 | |||||||||||||
Noncontrolling interest | — | — | 87,396 | — | 87,396 | ||||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 1,361,185 | 1,339,173 | 2,731,695 | (3,983,472 | ) | 1,448,581 | |||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $1,422,538 | $2,068,761 | $3,163,571 | ($3,983,472 | ) | $2,671,398 |
CONDENSED CONSOLIDATING BALANCE SHEETS | |||||||||||||||||||
As of December 31, 2015 | |||||||||||||||||||
Rayonier Inc. (Parent Issuer) | Subsidiary Guarantors | Non- guarantors | Consolidating Adjustments | Total Consolidated | |||||||||||||||
ASSETS | |||||||||||||||||||
CURRENT ASSETS | |||||||||||||||||||
Cash and cash equivalents | $2,472 | $13,217 | $36,088 | — | $51,777 | ||||||||||||||
Accounts receivable, less allowance for doubtful accounts | — | 1,870 | 18,352 | — | 20,222 | ||||||||||||||
Inventory | — | — | 15,351 | — | 15,351 | ||||||||||||||
Prepaid expenses | — | 443 | 12,211 | — | 12,654 | ||||||||||||||
Other current assets | — | 4,876 | 805 | — | 5,681 | ||||||||||||||
Total current assets | 2,472 | 20,406 | 82,807 | — | 105,685 | ||||||||||||||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | — | — | 2,066,780 | — | 2,066,780 | ||||||||||||||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS | — | — | 65,450 | — | 65,450 | ||||||||||||||
NET PROPERTY, PLANT AND EQUIPMENT | — | 330 | 6,412 | — | 6,742 | ||||||||||||||
INVESTMENT IN SUBSIDIARIES | 1,321,681 | 2,212,405 | — | (3,534,086 | ) | — | |||||||||||||
INTERCOMPANY RECEIVABLE | 34,567 | (610,450 | ) | 575,883 | — | — | |||||||||||||
OTHER ASSETS | 3 | 18,718 | 52,560 | — | 71,281 | ||||||||||||||
TOTAL ASSETS | $1,358,723 | $1,641,409 | $2,849,892 | ($3,534,086 | ) | $2,315,938 | |||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||
CURRENT LIABILITIES | |||||||||||||||||||
Accounts payable | 609 | $1,463 | $19,407 | — | $21,479 | ||||||||||||||
Accrued taxes | — | (10 | ) | 3,695 | — | 3,685 | |||||||||||||
Accrued payroll and benefits | — | 3,594 | 3,443 | — | 7,037 | ||||||||||||||
Accrued interest | 3,047 | 666 | 2,440 | — | 6,153 | ||||||||||||||
Other current liabilities | — | 262 | 20,841 | — | 21,103 | ||||||||||||||
Total current liabilities | 3,656 | 5,975 | 49,826 | — | 59,457 | ||||||||||||||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 322,697 | 280,978 | 226,879 | — | 830,554 | ||||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFITS | — | 34,822 | (685 | ) | — | 34,137 | |||||||||||||
OTHER NON-CURRENT LIABILITIES | — | 16,914 | 13,136 | — | 30,050 | ||||||||||||||
INTERCOMPANY PAYABLE | (255,714 | ) | (18,961 | ) | 274,675 | — | — | ||||||||||||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,288,084 | 1,321,681 | 2,212,405 | (3,534,086 | ) | 1,288,084 | |||||||||||||
Noncontrolling interest | — | — | 73,656 | — | 73,656 | ||||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 1,288,084 | 1,321,681 | 2,286,061 | (3,534,086 | ) | 1,361,740 | |||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $1,358,723 | $1,641,409 | $2,849,892 | ($3,534,086 | ) | $2,315,938 |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||||||||||||||||||
For the Nine Months Ended September 30, 2016 | ||||||||||||||||||
Rayonier Inc. (Parent Issuer) | Subsidiary Guarantors | Non- guarantors | Consolidating Adjustments | Total Consolidated | ||||||||||||||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | ($578 | ) | $26,589 | $137,897 | — | $163,908 | ||||||||||||
INVESTING ACTIVITIES | ||||||||||||||||||
Capital expenditures | — | — | (40,246 | ) | — | (40,246 | ) | |||||||||||
Real estate development investments | — | — | (4,815 | ) | — | (4,815 | ) | |||||||||||
Purchase of timberlands | — | — | (353,828 | ) | — | (353,828 | ) | |||||||||||
Assets purchased in business acquisition | — | — | (1,113 | ) | — | (1,113 | ) | |||||||||||
Net proceeds from large disposition | — | — | 126,965 | — | 126,965 | |||||||||||||
Rayonier office building under construction | — | — | (3,933 | ) | — | (3,933 | ) | |||||||||||
Change in restricted cash | — | — | 22,430 | — | 22,430 | |||||||||||||
Investment in subsidiaries | — | (285,937 | ) | — | 285,937 | — | ||||||||||||
Other | — | — | 444 | — | 444 | |||||||||||||
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES | — | (285,937 | ) | (254,096 | ) | 285,937 | (254,096 | ) | ||||||||||
FINANCING ACTIVITIES | ||||||||||||||||||
Issuance of debt | — | 548,000 | 146,096 | — | 694,096 | |||||||||||||
Repayment of debt | — | (140,000 | ) | (314,419 | ) | — | (454,419 | ) | ||||||||||
Dividends paid | (92,095 | ) | — | — | — | (92,095 | ) | |||||||||||
Proceeds from the issuance of common shares | 889 | — | — | — | 889 | |||||||||||||
Repurchase of common shares | (690 | ) | — | — | — | (690 | ) | |||||||||||
Debt issuance costs | — | (818 | ) | — | — | (818 | ) | |||||||||||
Issuance of intercompany notes | (12,000 | ) | — | 12,000 | — | — | ||||||||||||
Intercompany distributions | 162,107 | (155,731 | ) | 279,561 | (285,937 | ) | — | |||||||||||
Other | (139 | ) | — | — | — | (139 | ) | |||||||||||
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 58,072 | 251,451 | 123,238 | (285,937 | ) | 146,824 | ||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | — | — | 1,626 | — | 1,626 | |||||||||||||
CASH AND CASH EQUIVALENTS | ||||||||||||||||||
Change in cash and cash equivalents | 57,494 | (7,897 | ) | 8,665 | — | 58,262 | ||||||||||||
Balance, beginning of year | 2,472 | 13,217 | 36,088 | — | 51,777 | |||||||||||||
Balance, end of period | $59,966 | $5,320 | $44,753 | — | $110,039 |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||||||||||||||||||
For the Nine Months Ended September 30, 2015 | |||||||||||||||||||
Rayonier Inc. (Parent Issuer) | Subsidiary Guarantors | Non- guarantors | Consolidating Adjustments | Total Consolidated | |||||||||||||||
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES | $77,316 | $92,414 | $64,901 | ($91,228 | ) | $143,403 | |||||||||||||
INVESTING ACTIVITIES | |||||||||||||||||||
Capital expenditures | — | (78 | ) | (37,133 | ) | — | (37,211 | ) | |||||||||||
Real estate development investments | — | — | (2,029 | ) | — | (2,029 | ) | ||||||||||||
Purchase of timberlands | — | — | (88,466 | ) | — | (88,466 | ) | ||||||||||||
Rayonier office building under construction | — | — | (369 | ) | — | (369 | ) | ||||||||||||
Change in restricted cash | — | — | (17,835 | ) | — | (17,835 | ) | ||||||||||||
Investment in subsidiaries | — | (75,946 | ) | — | 75,946 | — | |||||||||||||
Other | — | — | 3,039 | — | 3,039 | ||||||||||||||
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES | — | (76,024 | ) | (142,793 | ) | 75,946 | (142,871 | ) | |||||||||||
FINANCING ACTIVITIES | |||||||||||||||||||
Issuance of debt | — | 374,000 | 5,027 | — | 379,027 | ||||||||||||||
Repayment of debt | — | (294,472 | ) | (6,399 | ) | — | (300,871 | ) | |||||||||||
Dividends paid | (94,280 | ) | — | — | — | (94,280 | ) | ||||||||||||
Proceeds from the issuance of common shares | 1,322 | — | — | — | 1,322 | ||||||||||||||
Repurchase of common shares | (73,621 | ) | — | — | — | (73,621 | ) | ||||||||||||
Debt issuance costs | — | (1,678 | ) | — | — | (1,678 | ) | ||||||||||||
Intercompany distributions | — | (91,585 | ) | 76,303 | 15,282 | — | |||||||||||||
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES | (166,579 | ) | (13,735 | ) | 74,931 | 15,282 | (90,101 | ) | |||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | — | — | (6,234 | ) | — | (6,234 | ) | ||||||||||||
CASH AND CASH EQUIVALENTS | |||||||||||||||||||
Change in cash and cash equivalents | (89,263 | ) | 2,655 | (9,195 | ) | — | (95,803 | ) | |||||||||||
Balance, beginning of year | 102,218 | 8,105 | 51,235 | — | 161,558 | ||||||||||||||
Balance, end of period | $12,955 | $10,760 | $42,040 | — | $65,755 |
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
(acres in 000s) | As of September 30, 2016 | As of December 31, 2015 | |||||||||||||||
Owned | Leased | Total | Owned | Leased | Total | ||||||||||||
Southern | |||||||||||||||||
Alabama | 300 | 24 | 324 | 302 | 24 | 326 | |||||||||||
Arkansas | — | 15 | 15 | — | 15 | 15 | |||||||||||
Florida | 282 | 92 | 374 | 275 | 93 | 368 | |||||||||||
Georgia | 547 | 109 | 656 | 571 | 109 | 680 | |||||||||||
Louisiana | 145 | 1 | 146 | 149 | 1 | 150 | |||||||||||
Mississippi | 89 | — | 89 | 91 | — | 91 | |||||||||||
Oklahoma | 92 | — | 92 | 92 | — | 92 | |||||||||||
Tennessee | 1 | — | 1 | 1 | — | 1 | |||||||||||
Texas | 188 | — | 188 | 153 | — | 153 | |||||||||||
1,644 | 241 | 1,885 | 1,634 | 242 | 1,876 | ||||||||||||
Pacific Northwest | |||||||||||||||||
Oregon | 62 | — | 62 | 6 | — | 6 | |||||||||||
Washington | 316 | 1 | 317 | 366 | 1 | 367 | |||||||||||
378 | 1 | 379 | 372 | 1 | 373 | ||||||||||||
New Zealand (a) | 179 | 257 | 436 | 185 | 254 | 439 | |||||||||||
Total | 2,201 | 499 | 2,700 | 2,191 | 497 | 2,688 |
(a) | Represents legal acres owned and leased by the New Zealand JV, in which Rayonier owns a 77% interest. As of September 30, 2016, legal acres in New Zealand were comprised of 299,000 plantable acres and 137,000 non-productive acres. |
(acres in 000s) | Acres Owned | ||||||||||
December 31, 2015 | Acquisitions | Sales | September 30, 2016 | ||||||||
Southern | |||||||||||
Alabama | 302 | — | (2 | ) | 300 | ||||||
Florida | 275 | 7 | — | 282 | |||||||
Georgia | 571 | — | (24 | ) | 547 | ||||||
Louisiana | 149 | — | (4 | ) | 145 | ||||||
Mississippi | 91 | — | (2 | ) | 89 | ||||||
Oklahoma | 92 | — | — | 92 | |||||||
Tennessee | 1 | — | — | 1 | |||||||
Texas | 153 | 38 | (3 | ) | 188 | ||||||
1,634 | 45 | (35 | ) | 1,644 | |||||||
Pacific Northwest | |||||||||||
Oregon | 6 | 56 | — | 62 | |||||||
Washington | 366 | 5 | (55 | ) | 316 | ||||||
372 | 61 | (55 | ) | 378 | |||||||
New Zealand (a) | 185 | — | (6 | ) | 179 | ||||||
Total | 2,191 | 106 | (96 | ) | 2,201 |
(a) | Represents legal acres owned by the New Zealand JV, in which Rayonier has a 77% interest. |
(acres in 000s) | Acres Leased | ||||||||||
December 31, 2015 | New Leases | Expired Leases (a) | September 30, 2016 | ||||||||
Southern | |||||||||||
Alabama | 24 | — | — | 24 | |||||||
Arkansas | 15 | — | — | 15 | |||||||
Florida | 93 | — | (1 | ) | 92 | ||||||
Georgia | 109 | — | — | 109 | |||||||
Louisiana | 1 | — | — | 1 | |||||||
242 | — | (1 | ) | 241 | |||||||
Pacific Northwest | |||||||||||
Washington | 1 | — | — | 1 | |||||||
New Zealand (b) | 254 | 3 | — | 257 | |||||||
Total | 497 | 3 | (1 | ) | 499 |
(a) | Includes acres previously under lease that have been harvested or sold. |
(b) | Represents legal acres leased by the New Zealand JV, in which Rayonier has a 77% interest. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Financial Information (in millions) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Sales | |||||||||||||||
Southern Timber | $27.8 | $34.8 | $102.2 | $103.0 | |||||||||||
Pacific Northwest Timber | 16.1 | 21.6 | 52.3 | 57.8 | |||||||||||
New Zealand Timber | 42.2 | 41.1 | 126.0 | 121.5 | |||||||||||
Real Estate | |||||||||||||||
Improved Development | — | — | 1.7 | 0.8 | |||||||||||
Unimproved Development | 1.4 | 0.1 | 2.2 | 5.7 | |||||||||||
Rural | 6.4 | 9.8 | 17.4 | 19.9 | |||||||||||
Non-Strategic / Timberlands | 52.8 | 25.3 | 60.5 | 39.6 | |||||||||||
Large Dispositions | — | — | 129.5 | — | |||||||||||
Total Real Estate | 60.6 | 35.2 | 211.3 | 66.0 | |||||||||||
Trading | 24.7 | 19.0 | 76.0 | 59.5 | |||||||||||
Total Sales | $171.4 | $151.7 | $567.8 | $407.8 | |||||||||||
Operating Income | |||||||||||||||
Southern Timber | $8.2 | $10.5 | $35.0 | $34.7 | |||||||||||
Pacific Northwest Timber | (3.3 | ) | 3.1 | (0.9 | ) | 7.4 | |||||||||
New Zealand Timber | 6.6 | (0.9 | ) | 21.4 | 3.8 | ||||||||||
Real Estate | 43.1 | 20.0 | 153.0 | 34.0 | |||||||||||
Trading | 0.5 | 0.4 | 1.5 | 0.6 | |||||||||||
Corporate and other | (5.4 | ) | (5.3 | ) | (15.7 | ) | (18.5 | ) | |||||||
Operating Income | 49.7 | 27.8 | 194.3 | 62.0 | |||||||||||
Interest Expense, Interest Income and Other | (8.3 | ) | (9.2 | ) | (24.8 | ) | (28.8 | ) | |||||||
Income Tax (Expense) Benefit | (0.8 | ) | 0.6 | (2.2 | ) | 1.3 | |||||||||
Net Income | 40.6 | 19.2 | 167.3 | 34.5 | |||||||||||
Less: Net income (loss) attributable to noncontrolling interest | 1.2 | (0.5 | ) | 3.7 | (1.4 | ) | |||||||||
Net Income Attributable to Rayonier Inc. | $39.4 | $19.7 | $163.6 | $35.9 | |||||||||||
Adjusted EBITDA (a) | |||||||||||||||
Southern Timber | $18.2 | $24.9 | $72.1 | $76.1 | |||||||||||
Pacific Northwest Timber | 3.4 | 7.3 | 14.1 | 18.3 | |||||||||||
New Zealand Timber | 12.6 | 6.1 | 40.5 | 26.0 | |||||||||||
Real Estate | 56.6 | 30.9 | 74.0 | 54.6 | |||||||||||
Trading | 0.5 | 0.4 | 1.5 | 0.6 | |||||||||||
Corporate and Other | (4.1 | ) | (3.8 | ) | (14.4 | ) | (15.2 | ) | |||||||
Total Adjusted EBITDA | $87.2 | $65.8 | $187.8 | $160.4 |
(a) | Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Southern Timber Overview | 2016 | 2015 | 2016 | 2015 | |||||||||||
Sales Volume (in thousands of tons) | |||||||||||||||
Pine Pulpwood | 634 | 895 | 2,610 | 2,645 | |||||||||||
Pine Sawtimber | 333 | 421 | 1,195 | 1,214 | |||||||||||
Total Pine Volume | 967 | 1,316 | 3,805 | 3,859 | |||||||||||
Hardwood | 123 | 100 | 227 | 222 | |||||||||||
Total Volume | 1,090 | 1,416 | 4,032 | 4,081 | |||||||||||
Percentage Delivered Sales | 32 | % | 28 | % | 27 | % | 26 | % | |||||||
Percentage Stumpage Sales | 68 | % | 72 | % | 73 | % | 74 | % | |||||||
Net Stumpage Pricing (dollars per ton) | |||||||||||||||
Pine Pulpwood | $17.36 | $16.39 | $18.34 | $18.09 | |||||||||||
Pine Sawtimber | 26.17 | 27.27 | 26.74 | 27.83 | |||||||||||
Weighted Average Pine | $20.40 | $19.87 | $20.98 | $21.15 | |||||||||||
Hardwood | 14.84 | 16.56 | 13.38 | 13.70 | |||||||||||
Weighted Average Total | $19.76 | $19.63 | $20.54 | $20.77 | |||||||||||
Summary Financial Data (in millions of dollars) | |||||||||||||||
Sales | $27.8 | $34.8 | $102.2 | $103.0 | |||||||||||
Less: Cut and Haul | (6.3 | ) | (7.0 | ) | (19.4 | ) | (18.3 | ) | |||||||
Net Stumpage Sales | $21.5 | $27.8 | $82.8 | $84.7 | |||||||||||
Operating Income | $8.2 | $10.5 | $35.0 | $34.7 | |||||||||||
(+) Depreciation, depletion and amortization | 10.0 | 14.4 | 37.1 | 41.4 | |||||||||||
Adjusted EBITDA (a) | $18.2 | $24.9 | $72.1 | $76.1 | |||||||||||
Other Data | |||||||||||||||
Non-Timber Income (in millions of dollars) (b) | $3.9 | $4.1 | $13.4 | $13.5 | |||||||||||
Period-End Acres (in thousands) | 1,885 | 1,896 | 1,885 | 1,896 |
(a) | Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators. |
(b) | Non-Timber Income is presented net of direct charges and excludes allocated overhead. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Pacific Northwest Timber Overview | 2016 | 2015 | 2016 | 2015 | |||||||||||
Sales Volume (in thousands of tons) | |||||||||||||||
Pulpwood | 64 | 100 | 231 | 218 | |||||||||||
Sawtimber | 177 | 253 | 608 | 710 | |||||||||||
Total Volume | 241 | 353 | 839 | 928 | |||||||||||
Sales Volume (converted to MBF) | |||||||||||||||
Pulpwood | 6,016 | 9,514 | 21,920 | 20,639 | |||||||||||
Sawtimber | 24,084 | 34,058 | 80,014 | 92,693 | |||||||||||
Total Volume | 30,100 | 43,572 | 101,934 | 113,332 | |||||||||||
Percentage Delivered Sales | 100 | % | 80 | % | 93 | % | 85 | % | |||||||
Percentage Sawtimber Sales | 74 | % | 72 | % | 72 | % | 77 | % | |||||||
Delivered Log Pricing (in dollars per ton) | |||||||||||||||
Pulpwood | $40.07 | $45.88 | $42.85 | $44.48 | |||||||||||
Sawtimber | 76.69 | 74.33 | 72.80 | 74.11 | |||||||||||
Weighted Average Log Price | $67.02 | $65.05 | $64.32 | $66.71 | |||||||||||
Summary Financial Data (in millions of dollars) | |||||||||||||||
Sales | $16.1 | $21.6 | $52.3 | $57.8 | |||||||||||
Less: Cut and Haul | (7.8 | ) | (9.4 | ) | (24.6 | ) | (26.0 | ) | |||||||
Net Stumpage Sales | $8.3 | $12.2 | $27.7 | $31.8 | |||||||||||
Operating Income (Loss) | ($3.3 | ) | $3.1 | ($0.9 | ) | $7.4 | |||||||||
(+) Depreciation, depletion and amortization | 6.7 | 4.2 | 15.0 | 10.9 | |||||||||||
Adjusted EBITDA (a) | $3.4 | $7.3 | $14.1 | $18.3 | |||||||||||
Other Data | |||||||||||||||
Non-Timber Income (in millions of dollars) (b) | $0.5 | $0.6 | $2.1 | $2.6 | |||||||||||
Period-End Acres (in thousands) | 379 | 373 | 379 | 373 | |||||||||||
Sawtimber (in dollars per MBF) | $563 | $541 | $556 | $573 | |||||||||||
Estimated Percentage of Export Volume | 20 | % | 20 | % | 25 | % | 21 | % |
(a) | Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators. |
(b) | Non-Timber Income is presented net of direct charges and excludes allocated overhead. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
New Zealand Timber Overview | 2016 | 2015 | 2016 | 2015 | |||||||||||
Sales Volume (in thousands of tons) | |||||||||||||||
Domestic Sawtimber (Delivered) | 220 | 189 | 630 | 508 | |||||||||||
Domestic Pulpwood (Delivered) | 99 | 118 | 285 | 328 | |||||||||||
Export Sawtimber (Delivered) | 213 | 279 | 675 | 728 | |||||||||||
Export Pulpwood (Delivered) | 21 | 19 | 60 | 50 | |||||||||||
Stumpage | — | 116 | 10 | 227 | |||||||||||
Total Volume | 552 | 721 | 1,658 | 1,841 | |||||||||||
Percentage Delivered Sales | 100 | % | 84 | % | 100 | % | 88 | % | |||||||
Percentage Stumpage Sales | — | 16 | % | — | 12 | % | |||||||||
Delivered Log Pricing (in dollars per ton) | |||||||||||||||
Domestic Sawtimber | $75.06 | $60.12 | $71.26 | $65.54 | |||||||||||
Domestic Pulpwood | $32.55 | $29.03 | $31.30 | $32.50 | |||||||||||
Export Sawtimber | $97.44 | $82.42 | $96.04 | $89.01 | |||||||||||
Summary Financial Data (in millions of dollars) | |||||||||||||||
Sales | $42.2 | $41.1 | $124.2 | $117.3 | |||||||||||
Less: Cut and Haul | (18.3 | ) | (18.7 | ) | (52.1 | ) | (53.9 | ) | |||||||
Less: Port and Freight Costs | (6.6 | ) | (8.9 | ) | (19.3 | ) | (23.6 | ) | |||||||
Net Stumpage Sales | $17.3 | $13.5 | $52.8 | $39.8 | |||||||||||
Land Sales | — | — | 1.8 | 4.2 | |||||||||||
Total Sales | $42.2 | $41.1 | $126.0 | $121.5 | |||||||||||
Operating Income (Loss) | $6.6 | ($0.9 | ) | $21.4 | $3.8 | ||||||||||
(+) Depreciation, depletion and amortization | 6.0 | 7.0 | 17.3 | 22.2 | |||||||||||
(+) Non-cash cost of land sold | — | — | 1.8 | — | |||||||||||
Adjusted EBITDA (a) | $12.6 | $6.1 | $40.5 | $26.0 | |||||||||||
Other Data | |||||||||||||||
New Zealand Dollar to U.S. Dollar Exchange Rate (b) | 0.7178 | 0.6601 | 0.6897 | 0.7185 | |||||||||||
Net Plantable Period-End Acres (in thousands) | 299 | 302 | 299 | 302 | |||||||||||
Domestic Sawtimber (in $NZD per tonne) | $115.03 | $100.20 | $113.38 | $100.63 | |||||||||||
Export Sawtimber (in dollars per JAS m3) | $113.25 | $96.45 | $111.63 | $103.93 |
(a) | Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators. |
(b) | Represents the average period rate. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Real Estate Overview | 2016 | 2015 | 2016 | 2015 | |||||||||||
Sales (in millions of dollars) | |||||||||||||||
Improved Development (a) | — | — | $1.7 | $0.8 | |||||||||||
Unimproved Development | 1.4 | 0.1 | 2.2 | 5.7 | |||||||||||
Rural | 6.4 | 9.8 | 17.4 | 19.9 | |||||||||||
Non-Strategic / Timberlands | 52.8 | 25.3 | 60.5 | 39.6 | |||||||||||
Large Dispositions | — | — | 129.5 | — | |||||||||||
Total Sales | $60.6 | $35.2 | $211.3 | $66.0 | |||||||||||
Acres Sold | |||||||||||||||
Improved Development (a) | — | — | 47 | 19 | |||||||||||
Unimproved Development | 73 | 20 | 121 | 515 | |||||||||||
Rural | 2,069 | 3,503 | 6,180 | 7,773 | |||||||||||
Non-Strategic / Timberlands | 21,459 | 10,681 | 27,842 | 15,631 | |||||||||||
Large Dispositions | — | — | 55,320 | — | |||||||||||
Total Acres Sold | 23,601 | 14,204 | 89,510 | 23,938 | |||||||||||
Price per Acre (dollars per acre) | |||||||||||||||
Improved Development (a) | — | — | $37,353 | $42,281 | |||||||||||
Unimproved Development | 18,500 | 5,000 | 18,302 | 11,043 | |||||||||||
Rural | 3,082 | 2,796 | 2,797 | 2,563 | |||||||||||
Non-Strategic / Timberlands | 2,465 | 2,373 | 2,174 | 2,531 | |||||||||||
Large Dispositions | — | — | 2,342 | — | |||||||||||
Weighted Average (Total) (b) | $2,569 | $2,480 | $2,392 | $2,756 | |||||||||||
Weighted Average (Adjusted) (c) | $2,569 | $2,480 | $2,344 | $2,724 | |||||||||||
Sales (Excluding Large Dispositions) | $60.6 | $35.2 | $81.8 | $66.0 | |||||||||||
Operating Income | $43.1 | $20.0 | $153.0 | $34.0 | |||||||||||
(+) Depreciation, depletion and amortization | 9.2 | 6.3 | 14.0 | 11.1 | |||||||||||
(+) Non-cash cost of land sold | 4.3 | 4.6 | 8.3 | 9.5 | |||||||||||
(–) Large Dispositions (d) | — | — | (101.3 | ) | — | ||||||||||
Adjusted EBITDA (e) | $56.6 | $30.9 | $74.0 | $54.6 |
(a) | Reflects land with capital invested in infrastructure improvements. |
(b) | Excludes Large Dispositions. |
(c) | Excludes Improved Development and Large Dispositions. |
(d) | Large Dispositions are defined as transactions involving the sale of timberland that exceed $20 million in size and do not have any identified HBU premium relative to timberland value. On April 28, 2016, the Company completed a disposition of approximately 55,000 acres located in Washington for a sale price and gain of approximately $129.5 million and $101.3 million, respectively. |
(e) | Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators below. |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
Capital Expenditures By Segment (in millions of dollars) | 2016 | 2015 | 2016 | 2015 | |||||||||||
Timber Capital Expenditures | |||||||||||||||
Southern Timber | |||||||||||||||
Reforestation, silviculture and other capital expenditures | $4.0 | $3.6 | $11.5 | $9.3 | |||||||||||
Property taxes | 1.6 | 1.8 | 5.2 | 5.4 | |||||||||||
Lease payments | 0.5 | 0.6 | 3.2 | 3.7 | |||||||||||
Allocated overhead | 1.0 | 0.9 | 3.1 | 2.7 | |||||||||||
Subtotal Southern Timber | $7.1 | $6.9 | $23.0 | $21.1 | |||||||||||
Pacific Northwest Timber | |||||||||||||||
Reforestation, silviculture and other capital expenditures | 1.1 | 0.5 | 4.1 | 4.4 | |||||||||||
Property taxes | 0.1 | 0.1 | 0.4 | 0.4 | |||||||||||
Lease payments | — | — | — | — | |||||||||||
Allocated overhead | 0.4 | 0.4 | 1.1 | 1.3 | |||||||||||
Subtotal Pacific Northwest Timber | $1.6 | $1.0 | $5.6 | $6.1 | |||||||||||
New Zealand Timber | |||||||||||||||
Reforestation, silviculture and other capital expenditures | 3.0 | 2.5 | 6.4 | 5.6 | |||||||||||
Property taxes | 0.2 | 0.1 | 0.5 | 0.4 | |||||||||||
Lease payments | 1.3 | 0.9 | 2.6 | 2.4 | |||||||||||
Allocated overhead | 0.7 | 0.3 | 1.9 | 1.5 | |||||||||||
Subtotal New Zealand Timber | $5.2 | $3.8 | $11.4 | $9.9 | |||||||||||
Total Timber Segments Capital Expenditures | $13.9 | $11.7 | $40.0 | $37.1 | |||||||||||
Real Estate | 0.1 | — | 0.2 | 0.1 | |||||||||||
Corporate | — | — | — | — | |||||||||||
Total Capital Expenditures | $14.0 | $11.7 | $40.2 | $37.2 | |||||||||||
Timberland Acquisitions | |||||||||||||||
Southern Timber | $77.1 | $0.1 | $91.4 | $54.5 | |||||||||||
Pacific Northwest Timber | 0.1 | — | 262.4 | 34.0 | |||||||||||
New Zealand Timber | — | — | — | — | |||||||||||
Subtotal Timberland Acquisitions | $77.2 | $0.1 | $353.8 | $88.5 | |||||||||||
Real Estate Development Investments | $1.8 | $1.1 | $4.8 | $2.0 | |||||||||||
Rayonier Office Building | $2.8 | $0.1 | $3.9 | $0.4 |
Sales | Southern Timber | Pacific Northwest Timber | New Zealand Timber | Real Estate | Trading | Total | ||||||||||||||||||
Three Months Ended September 30, 2015 | $34.8 | $21.6 | $41.1 | $35.2 | $19.0 | $151.7 | ||||||||||||||||||
Volume/Mix | (7.2 | ) | (6.0 | ) | (6.0 | ) | 23.3 | 3.1 | 7.2 | |||||||||||||||
Price | 0.2 | 0.5 | 5.7 | 2.1 | 2.5 | 11.0 | ||||||||||||||||||
Foreign exchange (a) | — | — | 1.4 | — | — | 1.4 | ||||||||||||||||||
Other | — | — | — | — | 0.1 | 0.1 | ||||||||||||||||||
Three Months Ended September 30, 2016 | $27.8 | $16.1 | $42.2 | $60.6 | $24.7 | $171.4 |
(a) | Net of currency hedging impact. |
Sales | Southern Timber | Pacific Northwest Timber | New Zealand Timber | Real Estate | Trading | Total | ||||||||||||||||||
Nine Months Ended September 30, 2015 | $103.0 | $57.8 | $121.5 | $66.0 | $59.5 | $407.8 | ||||||||||||||||||
Volume/Mix | (0.1 | ) | (3.6 | ) | (1.9 | ) | 28.3 | 11.9 | 34.6 | |||||||||||||||
Price | (0.7 | ) | (1.9 | ) | 10.8 | (12.5 | ) | 5.5 | 1.2 | |||||||||||||||
Foreign exchange (a) | — | — | (2.2 | ) | — | — | (2.2 | ) | ||||||||||||||||
Other (b) | — | — | (2.2 | ) | 129.5 | (0.9 | ) | 126.4 | ||||||||||||||||
Nine Months Ended September 30, 2016 | $102.2 | $52.3 | $126.0 | $211.3 | $76.0 | $567.8 |
(a) | Net of currency hedging impact. |
(b) | Real Estate includes $129.5 million of sales from a Large Disposition of approximately 55,000 acres of timberlands. |
Operating Income | Southern Timber | Pacific Northwest Timber | New Zealand Timber | Real Estate | Trading | Corporate and Other | Total | |||||||||||||||||||||
Three Months Ended September 30, 2015 | $10.5 | $3.1 | ($0.9 | ) | $20.0 | $0.4 | ($5.3 | ) | $27.8 | |||||||||||||||||||
Volume/Mix | (3.0 | ) | (2.6 | ) | 0.3 | 15.7 | — | — | 10.4 | |||||||||||||||||||
Price | 0.2 | 0.6 | 6.6 | 2.1 | — | — | 9.5 | |||||||||||||||||||||
Cost | (0.3 | ) | (0.5 | ) | (1.0 | ) | 0.8 | 0.1 | (0.1 | ) | (1.0 | ) | ||||||||||||||||
Non-timber income | (0.2 | ) | (0.1 | ) | 0.3 | — | — | — | — | |||||||||||||||||||
Foreign exchange (a) | — | — | 1.2 | — | — | — | 1.2 | |||||||||||||||||||||
Depreciation, depletion & amortization | 1.0 | (3.8 | ) | 0.1 | 1.2 | — | — | (1.5 | ) | |||||||||||||||||||
Non-cash cost of land and improved development | — | — | — | 3.3 | — | — | 3.3 | |||||||||||||||||||||
Other | — | — | — | — | — | — | — | |||||||||||||||||||||
Three Months Ended September 30, 2016 | $8.2 | ($3.3 | ) | $6.6 | $43.1 | $0.5 | ($5.4 | ) | $49.7 |
(a) | Net of currency hedging impact. |
Operating Income | Southern Timber | Pacific Northwest Timber | New Zealand Timber | Real Estate | Trading | Corporate and Other | Total | |||||||||||||||||||||
Nine Months Ended September 30, 2015 | $34.7 | $7.4 | $3.8 | $34.0 | $0.6 | ($18.5 | ) | $62.0 | ||||||||||||||||||||
Volume/Mix | (0.5 | ) | (1.8 | ) | 1.5 | 18.9 | — | — | 18.1 | |||||||||||||||||||
Price | (0.9 | ) | (0.7 | ) | 17.7 | (12.4 | ) | — | — | 3.7 | ||||||||||||||||||
Cost | (1.9 | ) | (0.1 | ) | (0.5 | ) | 0.2 | 1.7 | 2.9 | 2.3 | ||||||||||||||||||
Non-timber income | (0.1 | ) | (0.6 | ) | (1.6 | ) | — | (0.8 | ) | — | (3.1 | ) | ||||||||||||||||
Foreign exchange (a) | — | — | (0.2 | ) | — | — | — | (0.2 | ) | |||||||||||||||||||
Depreciation, depletion & amortization | 3.7 | (5.1 | ) | 0.3 | 1.7 | — | (0.1 | ) | 0.5 | |||||||||||||||||||
Non-cash cost of land and improved development | — | — | (1.8 | ) | 5.3 | — | — | 3.5 | ||||||||||||||||||||
Other (b) | — | — | 2.2 | 105.3 | — | — | 107.5 | |||||||||||||||||||||
Nine Months Ended September 30, 2016 | $35.0 | ($0.9 | ) | $21.4 | $153.0 | $1.5 | ($15.7 | ) | $194.3 |
(a) | Net of currency hedging impact. |
(b) | Real Estate includes $101.3 million of operating income from a Large Disposition of approximately 55,000 acres of timberlands and a $4.0 million receipt of a deferred payment related to a prior land sale. |
Adjusted EBITDA (a) | Southern Timber | Pacific Northwest Timber | New Zealand Timber | Real Estate | Trading | Corporate and Other | Total | |||||||||||||||||||||
Three Months Ended September 30, 2015 | $24.9 | $7.3 | $6.1 | $30.9 | $0.4 | ($3.8 | ) | $65.8 | ||||||||||||||||||||
Volume/Mix | (6.4 | ) | (3.9 | ) | (1.4 | ) | 22.8 | — | — | 11.1 | ||||||||||||||||||
Price | 0.2 | 0.6 | 6.6 | 2.1 | — | — | 9.5 | |||||||||||||||||||||
Cost | (0.3 | ) | (0.5 | ) | (1.0 | ) | 0.8 | 0.1 | (0.3 | ) | (1.2 | ) | ||||||||||||||||
Non-timber income | (0.2 | ) | (0.1 | ) | 0.3 | — | — | — | — | |||||||||||||||||||
Foreign exchange (b) | — | — | 1.9 | — | — | — | 1.9 | |||||||||||||||||||||
Other | — | — | 0.1 | — | — | — | 0.1 | |||||||||||||||||||||
Three Months Ended September 30, 2016 | $18.2 | $3.4 | $12.6 | $56.6 | $0.5 | ($4.1 | ) | $87.2 |
(a) | Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators below. |
(b) | Net of currency hedging impact. |
Adjusted EBITDA (a) | Southern Timber | Pacific Northwest Timber | New Zealand Timber | Real Estate | Trading | Corporate and Other | Total | |||||||||||||||||||||
Nine Months Ended September 30, 2015 | $76.1 | $18.3 | $26.0 | $54.6 | $0.6 | ($15.2 | ) | $160.4 | ||||||||||||||||||||
Volume/Mix | (1.1 | ) | (2.8 | ) | (0.3 | ) | 27.6 | — | — | 23.4 | ||||||||||||||||||
Price | (0.9 | ) | (0.7 | ) | 17.7 | (12.4 | ) | — | — | 3.7 | ||||||||||||||||||
Cost | (1.9 | ) | (0.1 | ) | (0.5 | ) | 0.2 | 1.7 | 0.8 | 0.2 | ||||||||||||||||||
Non-timber income | (0.1 | ) | (0.6 | ) | (1.6 | ) | — | (0.8 | ) | — | (3.1 | ) | ||||||||||||||||
Foreign exchange (b) | — | — | (0.9 | ) | — | — | — | (0.9 | ) | |||||||||||||||||||
Other (c) | — | — | 0.1 | 4.0 | — | — | 4.1 | |||||||||||||||||||||
Nine Months Ended September 30, 2016 | $72.1 | $14.1 | $40.5 | $74.0 | $1.5 | ($14.4 | ) | $187.8 |
(a) | Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators below. |
(b) | Net of currency hedging impact. |
(c) | Real Estate includes the receipt of a $4.0 million deferred payment related to a prior land sale. |
September 30, | December 31, | ||||||
(millions of dollars) | 2016 | 2015 | |||||
Cash and cash equivalents | $110.0 | $51.8 | |||||
Total debt | 1,065.0 | 830.6 | |||||
Shareholders’ equity | 1,448.6 | 1,361.7 | |||||
Total capitalization (total debt plus equity) | 2,513.6 | 2,192.3 | |||||
Debt to capital ratio | 42 | % | 38 | % | |||
Net debt to enterprise value (a) | 23 | % | 22 | % |
(a) | Enterprise value is calculated as the number of shares outstanding multiplied by the Company’s share price plus net debt as of September 30, 2016 and December 31, 2015. |
(millions of dollars) | 2016 | 2015 | |||||
Cash provided by (used for): | |||||||
Operating activities | $163.9 | $143.4 | |||||
Investing activities | (254.1 | ) | (142.9 | ) | |||
Financing activities | 146.8 | (90.1 | ) |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Net Income to Adjusted EBITDA Reconciliation | |||||||||||||||
Net income | $40.6 | $19.2 | $167.3 | $34.5 | |||||||||||
Interest, net | 8.3 | 9.1 | 24.8 | 28.8 | |||||||||||
Income tax expense (benefit) | 0.8 | (0.6 | ) | 2.2 | (1.3 | ) | |||||||||
Depreciation, depletion and amortization | 32.0 | 32.0 | 83.7 | 85.8 | |||||||||||
Non-cash cost of land and improved development | 4.3 | 4.6 | 10.1 | 9.5 | |||||||||||
Costs related to shareholder litigation (a) | 1.2 | 1.5 | 2.2 | 3.1 | |||||||||||
Gain on foreign currency derivatives (b) | — | — | (1.2 | ) | — | ||||||||||
Large Dispositions (c) | — | — | (101.3 | ) | — | ||||||||||
Adjusted EBITDA | $87.2 | $65.8 | $187.8 | $160.4 |
2016 | |||||||||||||||
Guidance | Prior Guidance | ||||||||||||||
Net Income to Adjusted EBITDA Reconciliation | |||||||||||||||
Net income | $208.0 | - | $214.0 | $45.0 | - | $55.0 | |||||||||
Interest, net | 33.0 | - | 33.2 | 28.5 | - | 29.3 | |||||||||
Income tax expense (benefit) | 2.5 | - | 3.5 | 0.5 | - | 1.7 | |||||||||
Depreciation, depletion and amortization | 113.0 | - | 115.0 | 104.0 | - | 109.0 | |||||||||
Non-cash cost of land and improved development | 10.0 | - | 12.0 | 15.0 | - | 17.0 | |||||||||
Costs related to shareholder litigation (a) | 2.7 | - | 3.5 | 2.0 | - | 3.0 | |||||||||
Gain on foreign currency derivatives (b) | (1.2 | ) | - | (1.2 | ) | — | — | ||||||||
Large Dispositions (c) | (140.0 | ) | - | (145.0 | ) | — | — | ||||||||
Adjusted EBITDA | $228.0 | - | $235.0 | $195.0 | - | $215.0 |
(a) | Costs related to shareholder litigation include expenses incurred as a result of the securities litigation, the shareholder derivative demands and the Securities and Exchange Commission investigation. See Note 10—Contingencies in the 2015 Form 10-K. |
(b) | Gain on foreign currency derivatives is the gain resulting from the foreign exchange derivatives the Company used to mitigate the risk of fluctuations in foreign exchange rates while awaiting the capital contribution to the New Zealand JV. |
(c) | Large Dispositions are defined as transactions involving the sale of timberland that exceed $20 million in size and do not have any identified HBU premium relative to timberland value. On April 28, 2016, the Company completed a disposition of approximately 55,000 acres located in Washington for a sale price and gain of approximately $129.5 million and $101.3 million, respectively. |
Three Months Ended | Southern Timber | Pacific Northwest Timber | New Zealand Timber | Real Estate | Trading | Corporate and other | Total | ||||||||||||||||||||
September 30, 2016 | |||||||||||||||||||||||||||
Operating income (loss) | $8.2 | ($3.3 | ) | $6.6 | $43.1 | $0.5 | ($5.4 | ) | $49.7 | ||||||||||||||||||
Depreciation, depletion and amortization | 10.0 | 6.7 | 6.0 | 9.2 | — | 0.1 | 32.0 | ||||||||||||||||||||
Non-cash cost of land and improved development | — | — | — | 4.3 | — | — | 4.3 | ||||||||||||||||||||
Costs related to shareholder litigation (a) | — | — | — | — | — | 1.2 | 1.2 | ||||||||||||||||||||
Adjusted EBITDA | $18.2 | $3.4 | $12.6 | $56.6 | $0.5 | ($4.1 | ) | $87.2 | |||||||||||||||||||
September 30, 2015 | |||||||||||||||||||||||||||
Operating income (loss) | $10.5 | $3.1 | ($0.9 | ) | $20.0 | $0.4 | ($5.3 | ) | $27.8 | ||||||||||||||||||
Non-operating expense | — | — | — | — | — | (0.1 | ) | (0.1 | ) | ||||||||||||||||||
Depreciation, depletion and amortization | 14.4 | 4.2 | 7.0 | 6.3 | — | 0.1 | 32.0 | ||||||||||||||||||||
Non-cash cost of land and improved development | — | — | — | 4.6 | — | — | 4.6 | ||||||||||||||||||||
Costs related to shareholder litigation (a) | — | — | — | — | — | 1.5 | 1.5 | ||||||||||||||||||||
Adjusted EBITDA | $24.9 | $7.3 | $6.1 | $30.9 | $0.4 | ($3.8 | ) | $65.8 |
(a) | Costs related to shareholder litigation include expenses incurred as a result of the securities litigation, the shareholder derivative demands and the Securities and Exchange Commission investigation. See Note 10—Contingencies in the 2015 Form 10-K. |
Nine Months Ended | Southern Timber | Pacific Northwest Timber | New Zealand Timber | Real Estate | Trading | Corporate and other | Total | ||||||||||||||||||||
September 30, 2016 | |||||||||||||||||||||||||||
Operating income (loss) | $35.0 | ($0.9 | ) | $21.4 | $153.0 | $1.5 | ($15.7 | ) | $194.3 | ||||||||||||||||||
Depreciation, depletion and amortization | 37.1 | 15.0 | 17.3 | 14.0 | — | 0.3 | 83.7 | ||||||||||||||||||||
Non-cash cost of land and improved development | — | — | 1.8 | 8.3 | — | — | 10.1 | ||||||||||||||||||||
Costs related to shareholder litigation (a) | — | — | — | — | — | 2.2 | 2.2 | ||||||||||||||||||||
Gain on foreign currency derivatives (b) | — | — | — | — | — | (1.2 | ) | (1.2 | ) | ||||||||||||||||||
Large Dispositions (c) | — | — | — | (101.3 | ) | — | — | (101.3 | ) | ||||||||||||||||||
Adjusted EBITDA | $72.1 | $14.1 | $40.5 | $74.0 | $1.5 | ($14.4 | ) | $187.8 | |||||||||||||||||||
September 30, 2015 | |||||||||||||||||||||||||||
Operating income (loss) | $34.7 | $7.4 | $3.8 | $34.0 | $0.6 | ($18.5 | ) | $62.0 | |||||||||||||||||||
Depreciation, depletion and amortization | 41.4 | 10.9 | 22.2 | 11.1 | — | 0.2 | 85.8 | ||||||||||||||||||||
Non-cash cost of land and improved development | — | — | — | 9.5 | — | — | 9.5 | ||||||||||||||||||||
Costs related to shareholder litigation (a) | — | — | — | — | — | 3.1 | 3.1 | ||||||||||||||||||||
Adjusted EBITDA | $76.1 | $18.3 | $26.0 | $54.6 | $0.6 | ($15.2 | ) | $160.4 |
(a) | Costs related to shareholder litigation include expenses incurred as a result of the securities litigation, the shareholder derivative demands and the Securities and Exchange Commission investigation. See Note 10—Contingencies in the 2015 Form 10-K. |
(b) | Gain on foreign currency derivatives is the gain resulting from the foreign exchange derivatives used by the Company to mitigate the risk of fluctuations in foreign exchange rates while awaiting the capital contribution to the New Zealand JV. |
(c) | Large Dispositions are defined as transactions involving the sale of timberland that exceed $20 million in size and do not have any identified HBU premium relative to timberland value. On April 28, 2016, the Company completed a disposition of approximately 55,000 acres located in Washington for a sale price and gain of approximately $129.5 million and $101.3 million, respectively. |
Nine Months Ended September 30, | |||||||
2016 | 2015 | ||||||
Cash provided by operating activities | $163.9 | $143.4 | |||||
Capital expenditures (a) | (40.2 | ) | (37.2 | ) | |||
Working capital and other balance sheet changes | (0.2 | ) | (5.3 | ) | |||
CAD | 123.5 | 100.9 | |||||
Mandatory debt repayments | — | (131.0 | ) | ||||
CAD after mandatory debt repayments | $123.5 | ($30.1 | ) |
Cash used for investing activities | ($254.1 | ) | ($142.9 | ) | |||
Cash provided by (used for) financing activities | $146.8 | ($90.1 | ) |
(a) | Capital expenditures exclude timberland acquisitions of $353.8 million and $88.5 million and spending on the Rayonier office building of $3.9 million and $0.4 million during the nine months ended September 30, 2016 and September 30, 2015, respectively. |
Contractual Financial Obligations (in millions) | Total | Payments Due by Period | |||||||||||||||||
Remaining 2016 | 2017-2018 | 2019-2020 | Thereafter | ||||||||||||||||
Long-term debt (a) | $1,037 | — | — | $40 | $997 | ||||||||||||||
Current maturities of long-term debt (b) | 32 | — | 32 | — | — | ||||||||||||||
Interest payments on long-term debt (c) | 199 | 7 | 56 | 55 | 81 | ||||||||||||||
Operating leases — timberland | 204 | 4 | 20 | 17 | 163 | ||||||||||||||
Operating leases — PP&E, offices | 6 | 1 | 2 | 1 | 2 | ||||||||||||||
Commitments — derivatives (d) | 76 | 3 | 18 | 18 | 37 | ||||||||||||||
Commitments — other (e) | 8 | 3 | 5 | — | — | ||||||||||||||
Total contractual cash obligations | $1,562 | $18 | $133 | $131 | $1,280 |
(a) | The book value of long-term debt, net of deferred financing costs, is currently recorded at $1,033.3 million on the Company’s Consolidated Balance Sheet, but upon maturity the liability will be $1,037.0 million. |
(b) | The book value of our current maturities of long-term debt is currently recorded at $31.8 million on the Company’s Consolidated Balance Sheet, but upon maturity the liability will be $31.5 million. |
(c) | Projected interest payments for variable rate debt were calculated based on outstanding principal amounts and interest rates as of September 30, 2016. |
(d) | Commitments represent payments expected to be made on derivative financial instruments (foreign exchange contracts and interest rate swaps). See Note 12 — Derivative Financial Instruments and Hedging Activities. |
(e) | Commitments include payments expected to be made on the construction of the Company’s office building. |
Item 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Item 4. | CONTROLS AND PROCEDURES |
Item 1. | Legal Proceedings |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
Period | Total Number of Shares Purchased (a) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (b) | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (c) | ||||||||||
July 1 to July 31 | 27 | $26.96 | — | 7,518,527 | ||||||||||
August 1 to August 31 | — | — | — | 7,518,527 | ||||||||||
September 1 to September 30 | — | — | — | 7,518,527 | ||||||||||
Total | 27 | — |
(a) | Includes 27 shares of the Company’s common stock purchased in July from employees in non-open market transactions. The shares of stock were sold by current employees of the Company in exchange for cash that was used to pay withholding taxes associated with the vesting of restricted stock awards under the Company’s stock incentive plan. The price per share surrendered is based on the closing price of the company’s stock on the respective vesting dates of the awards. |
(b) | Purchases made in open-market transactions under the $100 million share repurchase program announced on February 10, 2016. |
(c) | Maximum number of shares authorized to be purchased as of September 30, 2016 include 3,776,612 under the 1996 anti-dilutive program and approximately 3,741,915 under the share repurchase program. |
Item 6. | Exhibits |
10.1 | Amendment to Rayonier Investment and Savings Plan for Salaried Employees (the “Plan”) effective as of January 1, 2017. | Filed herewith | |
10.2 | First Amendment to the Retirement Plan for Salaried Employees of Rayonier Inc. effective as of December 31, 2016. | Filed herewith | |
10.3 | Amended and Restated Executive Severance Pay Plan effective as of December 31, 2016.* | Filed herewith | |
31.1 | Chief Executive Officer’s Certification Pursuant to Rule 13a-14(a)/15d-14(a) and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith | |
31.2 | Chief Financial Officer’s Certification Pursuant to Rule 13a-14(a)/15d-14(a) and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith | |
32 | Certification of Periodic Financial Reports Under Section 906 of the Sarbanes-Oxley Act of 2002 | Furnished herewith | |
101 | The following financial information from our Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2016, formatted in Extensible Business Reporting Language (“XBRL”), includes: (i) the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the Three and Nine Months Ended September 30, 2016 and 2015; (ii) the Consolidated Balance Sheets as of September 30, 2016 and December 31, 2015; (iii) the Consolidated Statements of Shareholders’ Equity for the Nine Months Ended September 30, 2016 and the Years Ended December 31, 2015 and 2014; (iv) the Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2016 and 2015; and (v) the Notes to Consolidated Financial Statements. | Filed herewith |
RAYONIER INC. | ||
(Registrant) | ||
By: | /s/ APRIL TICE | |
April Tice Director, Financial Services and Corporate Controller (Duly Authorized Officer, Principal Accounting Officer) |
1. | The Adoption Agreement is amended to read: |
5-3 | PLAN COMPENSATION: Plan Compensation is Total Compensation (as defined in AA §5-1 above) with the following exclusions described below. |
Deferral | Match | ER | ||
¨ | ¨ | ¨ | (a) | No exclusions. |
N/A | ¨ | ¨ | (b) | Elective Deferrals (as defined in Section 1.46 of the Plan), pre-tax contributions to a cafeteria plan or a Code §457 plan, and qualified transportation fringes under Code§132(f)(4) are excluded. |
þ | þ | þ | (c) | All fringe benefits (cash and noncash), reimbursements or other expense allowances, moving expenses, deferred compensation, and welfare benefits are excluded. |
¨ | ¨ | ¨ | (d) | Compensation above $ is excluded. (See Section 1.97 of the Plan.) |
¨ | ¨ | ¨ | (e) | Amounts received as a bonus are excluded. |
¨ | ¨ | ¨ | (f) | Amounts received as commissions are excluded. |
¨ | ¨ | ¨ | (g) | Overtime payments are excluded. |
¨ | ¨ | ¨ | (h) | Amounts received for services performed for a non-signatory Related Employer are excluded. (See Section 2.02(c) of the Plan.) |
¨ | ¨ | ¨ | (i) | “Deemed §125 compensation” as defined in Section 1.141(d) of the Plan. |
¨ | ¨ | ¨ | (j) | Amounts received after termination of employment are excluded. (See Section 1.141(b) of the Plan.) |
þ | þ | þ | (k) | Differential Pay (as defined in Section 1.141(e) of the Plan). |
þ | þ | þ | (l) | Describe adjustments to Plan Compensation: All bonuses except the Annual Bonus program; all short term disability or disability salary continuation payments; foreign service allowance. |
2. | The Adoption Agreement is amended to read: |
6-2 | EMPLOYER CONTRIBUTION FORMULA. For the period designated in AA §6-4 below, the Employer will make the following Employer Contributions on behalf of Participants who satisfy the allocation conditions designated in AA §6-5 below. Any Employer Contribution authorized under this AA §6-2 will be allocated in accordance with the allocation formula selected under AA §6-3. |
þ (a) | Discretionary contribution. The Employer will determine in its sole discretion how much, if any, it will make as an Employer Contribution. |
¨ | (b) Fixed contribution. |
¨ | (1) % of each Participant’s Plan Compensation. |
¨ | (2) $ for each Participant. |
¨ | (3) The Employer Contribution will be determined in accordance with any Collective Bargaining Agreement(s) addressing retirement benefits of Collectively Bargained Employees under the Plan. |
¨ | (c) Service-based contribution. The Employer will make the following contribution: |
¨ | (1) Discretionary. A discretionary contribution determined as a uniform percentage of Plan Compensation or a uniform dollar amount for each period of service designated below. |
¨ | (2) Fixed percentage. % of Plan Compensation paid for each period of service designated below. |
¨ | (3) Fixed dollar. $ for each period of service designated below. |
¨ | (4) Each Hour of Service |
¨ | (5) Each week of employment |
¨ | (6) Describe period: |
¨ | (7) Describe any special provisions that apply to service-based contribution: |
¨ | (d) Year of Service contribution. The Employer will make an Employer Contribution based on Years of Service with the Employer. |
¨ (1) | For Years of Service between and | % |
¨ (2) | For Years of Service between and | % |
¨ (3) | For Years of Service between and | % |
¨ (4) | For Years of Service and above | % |
¨ | (e) Prevailing Wage Formula. The Employer will make a contribution for each Participant’s Prevailing Wage Service based on the hourly contribution rate for the Participant’s employment classification. (See Section 3.02(a)(5) of the Plan.) |
¨ | (1) Amount of contribution. The Employer will make an Employer Contribution based on the hourly contribution rate for the Participant’s employment classification. The Prevailing Wage Contribution will be determined as follows: |
¨ | (i) The Employer Contribution will be determined based on the required contribution rates for the employment classifications under the applicable federal, state or municipal prevailing wage laws. For any Employee performing Prevailing Wage Service, the Employer may make the required contribution for such service without designating the exact amount of such contribution. |
¨ | (ii) The Employer will make the Prevailing Wage Contribution based on the hourly contribution rates as set forth in the Addendum attached to this Adoption Agreement. However, if the required contribution under the applicable federal, state or municipal prevailing wage law provides for a greater contribution than set forth in the Addendum, the Employer may make the greater contribution as a Prevailing Wage Contribution. |
¨ | (2) Offset of other contributions. The contributions under the Prevailing Wage Formula will offset the following contributions under this Plan. (See Section 3.02(a)(5) of the Plan.) |
¨ | (i) Employer Contributions (other than Safe Harbor Employer Contributions) |
¨ | (ii) Safe Harbor Employer Contributions. |
¨ | (iii) Qualified Nonelective Contributions (QNECs) |
¨ | (iv) Matching Contributions (other than Safe Harbor Matching Contributions) |
¨ | (v) Safe Harbor Matching Contributions. |
¨ | (vi) Qualified Matching Contributions (QMACs) |
¨ | (3) Modification of default rules. Section 3.02(a)(5) of the Plan contains default rules for administering the Prevailing Wage Formula. Complete this subsection (3) to modify the default provisions. |
¨ | (i) Application to Highly Compensated Employees. Instead of applying only to Nonhighly Compensated Employees, the Prevailing Wage Formula applies to all eligible Participants, including Highly Compensated Employees. |
¨ | (ii) Minimum age and service conditions. Instead of no minimum age or service condition, Prevailing Wage contributions are subject to a one Year of Service (as defined in AA§4-3) and age 21 minimum age and service requirement with semi-annual Entry Dates. |
¨ | (iii) Allocation conditions. Instead of no allocation conditions, the Prevailing Wage contributions are subject to a 1,000 Hours of Service and last day employment allocation condition, as set forth under Section 3.09 of the Plan. |
¨ | (iv) Vesting. Instead of 100% immediate vesting, Prevailing Wage contributions will vest under the following vesting schedule (as defined in Section 7.02 of the Plan): |
¨ | (A) 6-year graded vesting schedule |
¨ | (B) 3-year cliff vesting schedule |
¨ | (v) Describe: |
¨ | (f) Describe special rules for determining contributions under Plan: |
3. | The Adoption Agreement is amended to read: |
6-3 | ALLOCATION FORMULA. |
¨ | (a) Pro rata allocation. The discretionary Employer Contribution under AA §6-2 will be allocated: |
¨ | (1) as a uniform percentage of Plan Compensation. |
¨ | (2) as a uniform dollar amount. |
¨ | (b) Fixed contribution. The fixed Employer Contribution under AA §6-2 will be allocated in accordance with the selections made under AA §6-2. |
¨ | (c) Permitted disparity allocation. The discretionary Employer Contribution under AA §6-2 will be allocated under the two-step method (as defined in Section 3.02(a)(1)(ii)(A) of the Plan), using the Taxable Wage Base (as defined in Section 1.136 of the Plan) as the Integration Level. However, for any Plan Year in which the Plan is Top Heavy, the four-step method (as defined in Section 3.02(a)(1)(ii)(B) of the Plan) applies, unless provided otherwise under subsection (2) below. |
¨ | (1) Integration Level. Instead of the Taxable Wage Base, the Integration Level is: |
¨ | (i) % of the Taxable Wage Base, increased (but not above the Taxable Wage Base) to the next higher: |
¨ | (ii) $ (not to exceed the Taxable Wage Base) |
¨ | (iii) 20% of the Taxable Wage Base |
¨ | (2) Four-step method. |
¨ | (i) Instead of applying only when the Plan is top heavy, the four-step method will always be used. |
¨ | (ii) The four-step method will never be used, even if the Plan is Top Heavy. |
¨ | (iii) In applying step one and step two under the four-step method, instead of using Total Compensation, the Plan will use Plan Compensation. (See Section 3.02(a)(1)(ii)(B) of the Plan.) |
¨ | (3) Describe special rules for applying permitted disparity allocation formula: |
¨ | (d) Uniform points allocation. The discretionary Employer Contribution designated in AA §6-2 will be allocated to each Participant in the ratio that each Participant's total points bears to the total points of all Participants. A Participant will receive the following points: |
¨ | (1) point(s) for each year(s) of age (attained as of the end of the Plan Year). |
¨ | (2) point(s) for each $ (not to exceed $200) of Plan Compensation. |
¨ | (3) point(s) for each Year(s) of Service. For this purpose, Years of Service are determined: |
¨ | (i) In the same manner as determined for eligibility. |
¨ | (ii) In the same manner as determined for vesting. |
¨ | (iii) Points will not be provided with respect to Years of Service in excess of . |
¨ | (e) Employee group allocation. The Employer may make a separate Employer Contribution to the Participants in the following allocation groups. The Employer must notify the Trustee in writing of the amount of the contribution to be allocated to each allocation group. |
¨ | (1) A separate discretionary Employer Contribution may be made to each Participant of the Employer (i.e., each Participant is in his/her own allocation group). |
¨ | (2) A separate discretionary or fixed Employer Contribution may be made to the following allocation groups. If no fixed amount is designated for a particular allocation group, the contribution made for such allocation group will be allocated as a uniform percentage of Plan Compensation or as a uniform dollar amount to all Participants within that allocation group. |
¨ | (3) Special rules. The following special rules apply to the Employee group allocation formula. |
¨ | (i) Family Members. In determining the separate groups under (2) above, each Family Member (as defined in Section 1.65 of the Plan) of a Five Percent Owner is always in a separate allocation group. If there are more than one Family Members, each Family Member will be in a separate allocation group. |
¨ | (ii) Benefiting Participants who do not receive Minimum Gateway Contribution. In determining the separate groups under (2) above, Benefiting Participants who do not receive a Minimum Gateway Contribution are always in a separate allocation group. If there are more than one Benefiting Participants who do not receive a Minimum Gateway Contribution, each will be in a separate allocation group. (See Section 3.02(a)(1)(iv)(B)(III) of the Plan.) |
¨ | (iii) More than one Employee group. Unless designated otherwise under this subsection (iii), if a Participant is in more than one allocation group described in (2) above during the Plan Year, the Participant will receive an Employer Contribution based on the Participant’s status on the last day of the Plan Year. (See Section 3.02(a)(1)(iv)(A) of the Plan.) |
¨ | (A) Determined separately for each Employee group. If a Participant is in more than one allocation group during the Plan Year, the Participant’s share of the Employer Contribution will be based on the Participant’s status for the part of the year the Participant is in each allocation group. |
¨ | (B) Describe: |
¨ | (f) Age-based allocation. The discretionary Employer Contribution designated in AA §6-2 will be allocated under the age- based allocation formula so that each Participant receives a pro rata allocation based on adjusted Plan Compensation. For this purpose, a Participant’s adjusted Plan Compensation is determined by multiplying the Participant’s Plan Compensation by an Actuarial Factor (as described in Section 1.04 of the Plan). |
¨ | (1) Applicable interest rate. Instead of 8.5%, the Plan will use an interest rate of % (must be between 7.5% and 8.5%) in determining a Participant’s Actuarial Factor. |
¨ | (2) Applicable mortality table. Instead of the UP-1984 mortality table, the Plan will use the following mortality table in determining a Participant’s Actuarial Factor: |
¨ | (3) Describe special rules applicable to age-based allocation: |
¨ | (g) Service-based allocation formula. The service-based Employer Contribution selected in AA §6-2 will be allocated in accordance with the selections made under the service-based allocation formula in AA §6-2. |
¨ | (h) Year of Service allocation formula. The Year of Service Employer Contribution selected in AA §6-2 will be allocated in accordance with the selections made under the Year of Service allocation formula in AA §6-2. |
¨ | (i) Prevailing Wage allocation formula. The Prevailing Wage Employer Contribution selected in AA §6-2 will be allocated in accordance with the selections made under the Prevailing Wage allocation formula in AA §6-2. The Employer may attach an Addendum to the Adoption Agreement setting forth the hourly contribution rate for the employment classifications eligible for Prevailing Wage contributions. |
þ (j) | Describe special rules for determining allocation formula: The Contribution (known as Enhanced Retirement contribution) will equal 3% of an Eligible Employee's compensation. |
6-4 | SPECIAL RULES. No special rules apply with respect to Employer Contributions under the Plan, except to the extent designated under this AA §6-4. Unless designated otherwise, in determining the amount of the Employer Contributions to be allocated under this AA §6, the Employer Contribution will be based on Plan Compensation earned during the Plan Year. (See Section 3.02(c) of the Plan.) |
¨ | (a) Period for determining Employer Contributions. Instead of the Plan Year, Employer Contributions will be determined based on Plan Compensation earned during the following period: [The Plan Year must be used if the permitted disparity allocation method is selected under AA §6-3 above.] |
¨ | (1) Plan Year quarter |
¨ | (2) calendar month |
¨ | (3) payroll period |
¨ | (4) Other: |
¨ | (b) Limit on Employer Contributions. The Employer Contribution elected in AA §6-2 may not exceed: |
¨ | (1) % of Plan Compensation |
¨ | (3) Describe: |
¨ | (c) Offset of Employer Contribution. |
¨ | (1) A Participant’s allocation of Employer Contributions under AA §6-2 of this Plan is reduced by contributions under [insert name of plan(s)]. (See Section 3.02(d)(2) of the Plan.) |
¨ | (2) In applying the offset under this subsection, the following rules apply: |
¨ | (d) Special rules: |
5. | The Adoption Agreement is amended to read: |
8-2 | VESTING SCHEDULE. The vesting schedule under the Plan is as follows for both Employer Contributions and Matching Contributions, to the extent authorized under AA §6 and AA §6B. See Section 7.02 of the Plan for a description of the various vesting schedules under this AA §8-2. [Note: Any Prevailing Wage Contributions under AA §6-2, any Safe Harbor Contributions under AA §6C and any QNECs or QMACs under AA §6D are always 100% vested, regardless of any contrary selections in this AA §8-2 (unless provided otherwise under AA §6-2 for Prevailing Wage Contributions or under this AA §8-2 for any QACA Safe Harbor Contributions).] |
ER | Match | ||
¨ | ¨ | (1) | Full and immediate vesting. |
¨ | ¨ | (2) | 3-year cliff vesting schedule |
¨ | ¨ | (3) | 6-year graded vesting schedule |
þ | þ | (4) | 5-year graded vesting schedule |
¨ | ¨ | (5) | Modified vesting schedule |
% after 1 Year of Service | |||
% after 2 Years of Service | |||
% after 3 Years of Service % after 4 Years of Service | |||
% after 5 Years of Service | |||
100% after 6 Years of Service |
¨ | (b) Special vesting schedule for QACA Safe Harbor Contributions. Unless designated otherwise under this subsection, any QACA Safe Harbor Contributions will be 100% vested. However, if this subsection is checked, the following vesting schedule applies for QACA Safe Harbor Contributions. [Note: This subsection may be checked only if a QACA Safe Harbor Contribution is selected under AA §6C-2.] |
¨ | (i) 2-year cliff vesting |
¨ | (ii) 1-year cliff vesting |
¨ | (iii) Graduated vesting |
þ (c) | Special provisions applicable to vesting schedule: A Participant who experiences a Change in Control as that term is defined in the Retirement Plan for Salaried Employees of Rayonier Inc. shall become 100% vested. |
6. | The Adoption Agreement is amended to read: |
10-1 | AVAILABILITY OF IN-SERVICE DISTRIBUTIONS. A Participant may withdraw all or any portion of his/her vested Account Balance, to the extent designated, upon the occurrence of any of the event(s) selected under this AA §10-1. If more than one option is selected for a particular contribution source under this AA §10-1, a Participant may take an in-service distribution upon the occurrence of any of the selected events, unless designated otherwise under this AA §10-1. |
Deferral | Match | ER | ||
¨ | ¨ | ¨ | (a) | No in-service distributions are permitted. |
þ | ¨ | ¨ | (b) | Attainment of age 59½. |
¨ | þ | þ | (c) | Attainment of age 70 1/2 . |
þ | ¨ | ¨ | (d) | A Hardship that satisfies the safe harbor rules under Section 8.10(e)(1) of the Plan. [Note: Not applicable to QNECs, QMACs, or Safe Harbor Contributions.] |
¨ | ¨ | ¨ | (e) | A non-safe harbor Hardship described in Section 8.10(e)(2) of the Plan. [Note: Not applicable to QNECs, QMACs, or Safe Harbor Contributions.] |
¨ | ¨ | ¨ | (f) | Attainment of Normal Retirement Age. |
¨ | ¨ | ¨ | (g) | Attainment of Early Retirement Age. |
N/A | þ | ¨ | (h) | The Participant has participated in the Plan for at least 60 (cannot be less than 60) months. |
N/A | þ | ¨ | (i) | The amounts being withdrawn have been held in the Trust for at least two years. |
¨ | ¨ | ¨ | (j) | Upon a Participant becoming Disabled (as defined in AA §9- 4(b)). |
¨ | N/A | N/A | (k) | As a Qualified Reservist Distribution as defined under Section 8.10(d) of the Plan. |
¨ | ¨ | ¨ | (l) | Describe: |
7. | The Adoption Agreement is amended to read: |
11-11 | PROTECTED BENEFITS. There are no protected benefits (as defined in Code §411(d)(6)) other than those described in the Plan. |
þ (a) | Additional protected benefits. In addition to the protected benefits described in this Plan, certain other protected benefits are protected from a prior plan document. See the Addendum attached to this Adoption Agreement for a description of such protected benefits. |
¨ | (b) Money Purchase Plan assets. This Plan contains assets that were held under a Money Purchase Plan (e.g., Money Purchase Plan assets were transferred to this Plan by merger, trust-to-trust transfer or conversion). See the Addendum attached to this Adoption Agreement for a description of any special provisions that apply with respect to the transferred assets. See Section 14.05(c) of the Plan for rules regarding the treatment of transferred assets. |
¨ | (c) Elimination of distribution options. Effective , the distribution options described in subsection (1) below are eliminated. |
¨ | (1) Describe eliminated distribution options: |
¨ | (2) Application to existing Account Balances. The elimination of the distribution options described in subsection (1) applies to: |
¨ | (i) All benefits under the Plan, including existing Account Balances. |
¨ | (ii) Only benefits accrued after the effective date of the elimination (as described in subsection (c) above). |
¨ | (a) The adoption of a new plan, effective ____ [insert Effective Date of Plan]. [Note: Date can be no earlier than the first day of the Plan Year in which the Plan is adopted.] |
¨ | (b) The restatement of an existing plan, in order to comply with the requirements of PPA, pursuant to Rev. Proc. 2011-49. |
(1) | Effective date of restatement: __. [Note: Date can be no earlier than January 1, 2007. Section 14.01(f)(2) of Plan provides for retroactive effective dates for all PPA provisions. Thus, a current effective date may be used under this subsection (1) without jeopardizing reliance.] |
(2) | Name of plan(s) being restated: |
(3) | The original effective date of the plan(s) being restated: |
þ (c) | An amendment or restatement of the Plan (other than to comply with PPA). If this Plan is being amended, a snap-on amendment may be used to designate the modifications to the Plan or the updated pages of the Adoption Agreement may be substituted for the original pages in the Adoption Agreement. All prior Employer Signature Pages should be retained as part of this Adoption Agreement. |
(1) | Effective Date(s) of amendment/restatement: 1-1-2017 |
(2) | Name of plan being amended/restated: Rayonier Investment and Savings Plan for Salaried Employees |
(3) | The original effective date of the plan being amended/restated: 3-1-1994 |
(4) | If Plan is being amended, identify the Adoption Agreement section(s) being amended: 5-3(l), 6-2(f), 6-3(j), 6-4, 8-2(c), 10-1(l), and 11-11(a) to remove the "Employer Retirement" contribution from the Plan. |
1. | The foreword is amended by adding the following paragraph to the end thereof |
“1.14 | Eligibility Service shall mean any employment recognized as such for the purposes of meeting the eligibility requirements for membership in the Plan as provided in Article 2 and for meeting the eligibility for benefits under the Plan as provided under Article 4.” |
a) | The Social Security Benefit for a Member who is eligible for a retirement benefit under Sections 4.01, 4.02, 4.03, or 4.04 as of December 31, 2016, shall remain fixed at the amount determined by assuming the Member terminated employment on December 31, 2016. |
b) | The Social Security Benefit for a Member who is actively employed on December 31, 2016, who thereafter commences a vested retirement benefit under Section 4.05, and who is not eligible for a retirement benefit under Sections 4.01, 4.02, 4.03 or 4.04 as of his Benefit Commencement Date shall remain fixed at the amount determined by assuming the Member terminated employment on December 31, 2016. |
c) | The Social Security Benefit for a Member who is actively employed as of December 31, 2016 and is not eligible for a retirement benefit under Sections 4.01, 4.02, 4.03 or 4.04 but becomes eligible thereafter shall be determined by assuming the Member had terminated employment on the day he or she would have first become eligible for a retirement allowance under Sections 4.01, 4.02, 4.03, or 4.04. The Social Security compensation to be used for the period beginning January 1, 2017, and ending on the date specified in the previous sentence shall be equal to the rate of Social Security compensation received by the Member during the 2016 calendar year, and zero thereafter. For purposes of this subsection (c), the Social |
“(g) | Notwithstanding the foregoing provisions of this Section 2.02, periods of employment completed after December 31, 2016, and recognized periods absences occurring after December 31, 2016, shall not be considered in determining Benefit Service for any purposes under the Plan.” |
90586109.9 |
A. | Qualifying Termination. If, within two years following a Change in Control, (a) an Executive terminates his or her full time employment for Good Reason, or (b) the Company terminates an Executive's full time employment, the Executive shall be provided Scheduled Severance |
1 |
• | is terminated for Cause; |
• | voluntarily resigns (including normal retirement), other than for Good Reason; |
• | voluntarily fails to return from an approved leave of absence (including a medical leave of absence); or |
• | terminates employment as a result of Executive's death or Disability. |
B. | Definitions Related to Qualifying Termination. For purposes of this Section 3, the following terms have the indicated definitions: |
2 |
A. | An Executive’s “Scheduled Severance Pay” is the product of the Executive’s Base Pay times the Executive’s Applicable Tier Multiplier. |
B. | An Executive’s “Additional Severance” is the sum of the Executive’s Benefits Continuation Amount, calculated as provided in Section 4C below, and the Executive’s Bonus Severance, calculated as provided in this Section 4B. |
(i) | An Executive’s “Bonus Severance” is the product of the Executive’s Applicable Bonus times the Executive’s Applicable Tier Multiplier, together with an additional amount equal to the Executive’s Current Pro-rata Bonus. |
3 |
(1) | An Executive’s “Applicable Bonus” is the greatest of (A) the average of the bonus amounts actually paid to the Executive under the Rayonier annual incentive bonus plan (the “Bonus Plan”) in the three year period comprised of the year of the Qualifying Termination and the two immediately preceding calendar years, (B) the Executive’s Target Bonus Award under the Bonus Plan for the year in which the Change in Control takes place or (C) the Executive’s Target Bonus Award under the Bonus Plan in the year of Qualifying Termination. The Executive’s Applicable Bonus shall be determined without regard to any election the Executive may have made to defer receipt of all or any portion thereof as if there had been no deferral election in effect. |
(2) | An Executive’s “Current Pro-rata Bonus” is equal to the product of the Executive’s Applicable Bonus times a fraction the numerator of which is the number of months or portion thereof lapsed in the then current year prior to the Qualifying Termination and the denominator of which is twelve. |
C. | Benefits Continuation Amounts. The Executive’s Benefits Continuation Amount is the sum of the Executive’s Retirement Savings Adjustment and Other Benefits Adjustment. The Executive’s Retirement Savings Adjustment shall be in addition to amounts to which Executive is entitled under the Retirement Plan for Salaried Employees of Rayonier Inc., the Retirement Plan for Salaried Employees of ITT Corporation, the Rayonier Investment and Savings Plan for Salaried Employees and the Supplemental Plans (collectively, the "Retirement Plans"), in effect on the Effective Date of the Qualifying Termination. (Capitalized terms in this Section 4C that are not otherwise defined here or elsewhere in this Plan shall have the meaning ascribed to them in the applicable Retirement Plans.) |
(i) | An Executive’s “Retirement Savings Adjustment” is an amount equal to the excess of (X) over (Y), where (X) is the “Equivalent Actuarial Value” of the benefit to which Executive would have been entitled under the terms of the Retirement Plans, without regard to "vesting" thereunder, had Executive accumulated an additional 3 years of eligibility service as a fully vested participant in the Retirement Plans and an additional 3 years of benefit service in all the Retirement Plans other than the Retirement Plan for Salaried Employees of ITT Corporation and the ITT Supplemental Plans and as if Executive were 3 years older, solely for purposes of benefit eligibility and determining the amount of reduction in benefit on account of payment commencing prior to the Executive's normal retirement date, and by defining Executive's “Final Average Compensation” as equal to the greater of Executive's Base Pay on the Effective Date of Executive's Qualifying Termination or Executive's Final Average Compensation as determined under the terms of the Retirement Plan for Salaried Employees of Rayonier Inc., and (Y) is the Equivalent Actuarial Value of the amounts otherwise actually payable to Executive under the Retirement Plans. The Equivalent Actuarial Value shall be determined using the same assumptions utilized under the Rayonier Inc. Excess Benefit Plan upon the |
4 |
(ii) | Other Benefits Adjustment. The “Other Benefits Adjustment” is an amount equal to the sum of the Medical Benefits Payment and the Outplacement Services, determined as provided in subsections (1) - (3) below. |
(1) | An Executive’s “Medical Benefits Payment” is the product of the employer contribution component of the health and welfare plans maintained for the Executive as of the Change in Control under the applicable employee welfare benefit plan (within the meaning of Section 3(1) of ERISA) maintained by the Company for the benefit of the Company's employees at such date, times the Executive’s Applicable Tier Multiplier, discounted for present value applying a 4% discount rate. |
(2) | “Outplacement Services” means the cost of outplacement services, the scope and provider of which shall be selected by Executive in his or her sole discretion, for a period not to extend beyond twelve (12) months after the Effective Date of Executive's Qualifying Termination, in an amount not to exceed $30,000 in the aggregate. |
D. | Equity Benefits. Company shall provide to Executive the following additional benefits upon a Qualifying Termination of the Executive, to the extent not actually provided under an Applicable Incentive Stock Plan of the Company (collectively, the “Equity Benefits”). Terms used in this Section 4D not otherwise defined in this Plan shall have the meaning assigned in the Applicable Incentive Stock Plan. |
(i) | Options. The Company shall cause (a) all of the options to purchase the Common Shares of the Company ("Stock Options") granted to Executive prior to the Qualifying Termination by the Company to become immediately exercisable in full in accordance with the terms of the Applicable Incentive Stock Plan pursuant to |
5 |
(ii) | Restricted Stock. The Company shall (a) cause Executive to immediately vest in all outstanding shares of Restricted Stock that were the subject of an Award under an Incentive Stock Plan of the Company which Restricted Stock is held by or for the benefit of the Executive immediately prior to the Qualifying Termination without any remaining restrictions other than those imposed by applicable securities laws, (b) issue stock certificates in respect thereof to Executive without a restrictive legend and (c) permit Executive to tender within 60 days of the Qualifying Termination all such Restricted Stock to the Company and in the event of such a tender forthwith pay to the Executive the Fair Market Value therefore. |
(iii) | Performance Share Awards. In the event of a Qualifying Termination, Awards of “Performance Shares” under all “Performance Share Award Programs” shall be settled as follows: (a) with respect to any Award for which the applicable Performance Period is more than 50% completed, the Performance Period shall be deemed to end as of the Qualifying Termination and the Executive shall receive the greater of (1) the Award resulting from utilizing the Fair Market Value in calculating total shareholder return for the Company for purposes of measuring Company performance with that of the comparison group under the applicable program, and (2) the Award at 100% of target performance under the applicable program; and (b) with respect to any Award as to which the applicable Performance Period is not more than 50% completed, the Executive shall receive the Award at 100% of target performance under the applicable program. Performance Shares due hereunder shall be settled in cash and paid on the basis of the Fair Market Value. |
(iv) | Coordination with Incentive Stock Plans. Any amounts paid hereunder shall be an offset against amounts otherwise due from the Company under the Applicable Incentive Stock Plan in respect of the same Award covered herein. |
(v) | Coordination with Section 409A. If at any time the payment of an Equity Benefit would be deemed to be payable to an Executive as a result of the Executive’s Separation from Service, payment of such Equity Benefit shall not be made earlier than the end of the Separation Delay Period where on the date of the Separation from Service the Executive was a Specified Employee; provided that, such delay in payment shall not apply to any portion of the Equity Benefit that is excepted from such delay under the Code Section 409A Rules as a Short-Term Deferral, Separation Pay or otherwise |
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A. | In the event any dispute arises between Executive and the Company as to the validity, enforceability and/or interpretation of any right or benefit afforded by this Plan, at Executive's option such dispute shall be resolved by binding arbitration proceedings in accordance with the rules of the American Arbitration Association. The arbitrators shall presume that the rights and/or benefits afforded by this Plan which are in dispute are valid and enforceable and that Executive is entitled to such rights and/or benefits. The Company shall be precluded from asserting that such rights and/or benefits are not valid, binding and enforceable and shall stipulate before such arbitrators that the Company is bound by all the provisions of this Plan. The burden of overcoming by clear and convincing evidence the presumption that Executive is entitled to such rights and/or benefits shall be on the Company. The results of any arbitration shall be conclusive on both parties and shall not be subject to judicial interference or review on any ground whatsoever, including without limitation any claim that the Company was wrongfully induced to enter into this agreement to arbitrate such a dispute. |
B. | In the event Executive is required to defend in any legal action or other proceeding the validity or enforceability of any right or benefit afforded by this Plan, the Company will pay any and all actual legal fees and expenses incurred by such Executive regardless of the outcome of such action and, if requested by Executive, shall (within two business days of such request) advance such expenses to Executive. The Company shall be precluded from asserting in any judicial or other proceeding commenced with respect to any right or benefit afforded by this Plan that such rights and benefits are not valid, binding and enforceable and shall stipulate in any such proceeding that the Company is bound by all the provisions of this Plan. |
C. | Amounts payable by the Company under this Section 5 shall in the first instance be paid by the trustee under the trust established by that certain Trust Agreement, known as the “Legal Resources Trust” authorized by the Compensation and Management Development Committee on July 20, 2001, to the extent such amounts were previously transferred by the Company to the trustee of the Legal Resources Trust. |
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A. | As a condition to the receipt of a designated portion of the Equity Benefits and the other Plan Benefits otherwise payable hereunder (such portion, the “Covenant Amount”) and in consideration thereof, Executive shall be deemed to have made and be bound by the “Change in Control Covenants” (defined below), which at the request of the Company shall be acknowledged by Executive in a simple declarative statement “I hereby confirm that I am bound by the Change in Control Covenants” attested to in writing by the Executive. The Covenant Amount shall be equal to so much of the identified amount payable in cash as the Company shall designate in a written notice to Executive given within thirty (30) days of the Qualifying Termination; provided that, the Covenant Amount shall not exceed an amount equal to the Base Pay of Executive immediately before the Qualifying Termination, multiplied by the Executive’s Applicable Tier Multiplier and determined by the Company in good faith to be reasonable compensation for the Change in Control Covenants. By way of explanation and clarification, the Covenant Amount shall not be an additional payment beyond whatever is otherwise provided for within this Plan; rather, a portion of the payments that the Executive will otherwise receive hereunder shall be allocated as the Covenant Amount. An Executive who receives a benefit under this Plan cannot opt to forego making the Change in Control Covenants. |
B. | The Executive’s “Change in Control Covenants” are the Confidentiality Covenants set forth in this Section 6B. |
(i) | Confidentiality Covenants. While employed by the Company following the Change in Control, and for a period of two (2) years following a Qualifying Termination (the “Confidential Information Period”), Executive covenants that Executive shall not disclose or make available to any person or entity any “Confidential Information” (as defined below) and shall not use or cause to be used any Confidential Information for any purpose other than fulfilling Executive’s employment obligations to the Company, without the express prior written authorization of the Company. For this purpose, “Confidential Information” means all information about the Company relating to any of its products or services or any phase of operations, including, without limitation, business plans and strategies, trade secrets, know-how, contracts, financial statements, pricing strategies, costs, customers and potential customers, vendors and potential vendors, marketing and distribution information, business results, software, hardware, databases, processes, procedures, technologies, designs, concepts, ideas, and methods not generally known through legitimate means to any of its competitors with which Executive became acquainted during the term of employment by the Company. Confidential Information also includes confidential information of third parties made available to the Company on a confidential basis, but does not include information which is generally known to the public without breach by Executive, (b) was given to Executive by a third party without any obligation of confidentiality, or (c) was obtained or independently developed by Executive prior to or following employment by the Company without the use of information that is otherwise Confidential Information. |
8 |
C. | Remedies Limited to Equitable Relief. By accepting payment of the Covenant Amount, Executive shall be deemed (a) to have acknowledged that in the event Executive breaches any of the Change in Control Covenants, the damages to the Company would be irreparable and that the Company shall have the right to seek injunctive and/or other equitable relief in any court of competent jurisdiction to enforce the Change in Control Covenants and (b) to have consented to the issuance of a temporary restraining order to maintain the status quo pending the outcome of any proceeding. The foregoing shall be the exclusive remedy of the Company for a breach of the Change in Control Covenants and under no circumstances shall the Company be entitled to seek return of all or any portion of the Covenant Amount or of any other amount payable hereunder, nor shall the Company be awarded or accept monetary damages for any such breach. |
A. | Notwithstanding any provision of this Plan to the contrary, in the event that the payments and other benefits payable under this Plan or otherwise payable to an Executive under any other plan, program, arrangement or agreement maintained by the Company or one of its affiliates (i) would constitute an “excess parachute payment” (as defined under Code Section 280G) and (ii) would be subject to the excise tax imposed by Section 4999 of the Code, then such payments and other benefits shall be payable either (x) in full or (y) in a reduced amount that would result in no portion of such payments and other benefits being subject to the excise tax imposed under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable federal, state, and local income taxes and the excise tax imposed by Section 4999 of the Code, results in the receipt by such Executive on an after-tax basis, of the greatest amount of severance benefits under this Plan or otherwise, notwithstanding that all or some portion of such severance benefits may be taxable under Section 4999 of the Code. |
B. | The determination of whether it is necessary to decrease a payment or benefit to be paid under this Plan must be made in good faith by a nationally recognized certified public accounting firm (the “Accounting Firm”) selected by the Company. This determination will be conclusive and binding upon the Executive and the Company. In the event that the Accounting Firm is serving as accountant or auditor for the individual, entity, or group effecting the Change in Control, the Company shall appoint another nationally recognized certified public accounting firm to make the determination required under this Plan. The Company shall bear all fees of the Accounting Firm. If a reduction is necessary, the Executive will have the right to designate the particular payment or benefit to be reduced or eliminated so that no portion of the payment or benefit to be paid to the Executive will be an excess parachute payment subject to the deduction limits under Section 280G of the Code and the excise tax under Section 4999 of the Code. However, no payment of “deferred compensation” (as defined under Treasury Regulation Section 1.409A-1(b)(1), after giving effect to the exemptions in Treasury Regulation Sections 1.409A-1(b)(3) through (b)(12)) may be reduced to the extent that a reduction can be made to any payment or benefit that is not “deferred compensation.” |
9 |
(i) | subject to the conditions contained in the final paragraph of this definition, the filing of a report on Schedule 13D with the Securities and Exchange Commission pursuant to Section 13(d) of the Act disclosing that any person, other than the Company or any employee benefit plan sponsored by the Company, is the beneficial owner (as the term is defined in Rule 13d-3 under the Act) directly or indirectly, of securities representing 50 percent or more of the total voting power represented by the Company’s then outstanding Voting Securities (calculated as provided in paragraph (d) of Rule 13d-3 under the Act in the case of rights to acquire Voting Securities); or |
10 |
(ii) | the purchase by any person, other than the Company or any employee benefit plan sponsored by the Company, of shares pursuant to a tender offer or exchange offer to acquire any Voting Securities of the Company (or securities convertible into such Voting Securities) for cash, securities, or any other consideration, provided that after consummation of the offer, the person in question is the beneficial owner, directly or indirectly, of securities representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding Voting Securities (all as calculated under clause (i)); or |
(iii) | the approval by the shareholders of the Company, and the subsequent occurrence, of (A) any consolidation or merger of the Company in which the Company is not the continuing or surviving corporation (other than a merger of the Company in which holders of Common Shares of the Company immediately prior to the merger have the same proportionate ownership of Common Shares of the surviving corporation immediately after the merger as immediately before), or pursuant to which Common Shares of the Company would be converted into cash, securities, or other property, or (B) any sale, lease, exchange, or other transfer (in one transaction or a series of related transactions) of all or substantially all the assets of the Company; or |
(iv) | a change in the composition of the Board of the Company at any time during any consecutive 24-month period such that “continuing directors” cease for any reason to constitute at least a 70 percent majority of the Board. |
11 |
12 |
13 |
14 |
15 |
16 |
17 |
1. | I have reviewed this quarterly report on Form 10-Q of Rayonier Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/S/ DAVID L. NUNES | |
David L. Nunes President and Chief Executive Officer, Rayonier Inc. |
1. | I have reviewed this quarterly report on Form 10-Q of Rayonier Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ MARK MCHUGH | |
Mark McHugh Senior Vice President and Chief Financial Officer, Rayonier Inc. |
1. | The quarterly report on Form 10-Q of Rayonier Inc. (the "Company") for the period ended September 30, 2016 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ DAVID L. NUNES | /s/ MARK MCHUGH | |
David L. Nunes | Mark McHugh | |
President and Chief Executive Officer, Rayonier Inc. | Senior Vice President and Chief Financial Officer, Rayonier Inc. |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Oct. 31, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | RAYONIER INC. | |
Trading Symbol | RYN | |
Entity Central Index Key | 0000052827 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 122,877,503 |
Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustment, income tax benefit | $ 0 | $ 429 | $ 0 | $ 1,581 |
Cash flow hedges, income tax benefit (expense) | 229 | 185 | 1,293 | 1,687 |
Amortization of pension and postretirement plans, income tax expense | $ 0 | $ 66 | $ 0 | $ 404 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Current Assets: | ||
Accounts receivable, allowance for doubtful accounts | $ 35 | $ 42 |
Shareholders’ Equity: | ||
Common shares, shares authorized | 480,000,000 | 480,000,000 |
Common shares, shares issued | 122,876,035 | 122,770,217 |
Common shares, shares outstanding | 122,876,035 | 122,770,217 |
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
Statement of Stockholders' Equity [Abstract] | |||||
Dividends declared (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.75 | $ 0.75 | $ 1.00 |
BASIS OF PRESENTATION |
9 Months Ended |
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Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION Basis of Presentation The unaudited consolidated financial statements and notes thereto of Rayonier Inc. and its subsidiaries (“Rayonier” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, these financial statements and notes reflect all adjustments (all of which are normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. These statements and notes should be read in conjunction with the financial statements and supplementary data included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, as filed with the SEC (the “2015 Form 10-K”). Reclassifications Certain 2015 amounts have been reclassified to conform with the current year presentation, including changes in balance sheet presentation. During the first quarter of 2016, the Company reclassified capitalized debt costs related to non-revolving debt from Other Assets to Long Term Debt as a result of the adoption of Accounting Standards Update (“ASU”) No. 2015-03, Interest - Imputation of Interest (Subtopic 835-50) - Simplifying the Presentation of Debt Issuance Costs, which is required to be applied on a retrospective basis. This reclassification is reflected in the September 30, 2016 and December 31, 2015 Consolidated Balance Sheets. A corresponding change has also been made to the Consolidated Statement of Cash Flows for both periods presented. New Accounting Standards In August 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. This Update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU No. 2016-15 is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. ASU No. 2016-15 is required to be applied retrospectively to all periods presented beginning in the period of adoption. Early adoption is permitted. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This update simplifies the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU No. 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Rayonier intends to adopt ASU No. 2016-09 in the Company’s first quarter 2017 Form 10-Q. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, which clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815 does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU No. 2016-05 is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Rayonier intends to adopt ASU No. 2016-05 in the Company’s first quarter 2017 Form 10-Q and does not expect it will have an impact on the consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize most leases on their balance sheets related to the rights and obligations created by those leases. ASU No. 2016-02 also requires additional qualitative and quantitative disclosures related to the nature, timing and uncertainty of cash flows arising from leases. ASU No. 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. ASU No. 2016-02 is required to be applied retrospectively to all periods presented beginning in the period of adoption. Early adoption is permitted. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. In May 2014, the FASB and International Accounting Standards Board (“IASB”) jointly issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), a comprehensive new revenue recognition standard that will supersede current revenue recognition guidance. The guidance provides a unified model to determine when and how revenue is recognized and will require enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date. ASU No. 2015-14 provides a one-year deferral of the effective date of the new standard, with an option for organizations to adopt early based on the original effective date. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers—Identifying Performance Obligations and Licensing. The update clarifies the guidance for identifying performance obligations. In May 2016, the FASB issued ASU. No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The update clarifies the guidance for assessing collectibility, presenting sales taxes and other similar taxes collected from customers, noncash consideration, contract modifications at transition, completed contracts at transition and disclosing the accounting change in the period of adoption. This standard will be effective for Rayonier beginning January 1, 2018 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements and has completed a preliminary analysis of the specific impacts to our Southern Timber, Pacific Northwest Timber, New Zealand Timber and Real Estate segments. Subsequent Events Disposition of 37,000 acres of Gulf states timberland On October 21, 2016, the Company completed two separate transactions for the sale of 37,000 acres of timberland in Alabama and Mississippi for $77.8 million. The basis in these properties were classified as held for sale in the Consolidated Balance Sheet as of September 30, 2016. See Note 18 — Assets Held For Sale for additional information. |
TIMBERLAND ACQUISITION |
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Timberland Acquisition | TIMBERLAND ACQUISITION Menasha Acquisition The Company and Forest Investment Associates (“FIA”) formed Olympus Acquisition Company (“Olympus”) to acquire all the outstanding common stock of Menasha Forest Products Corporation (“Menasha”), a privately held company with approximately 132,000 acres of timberland located in Oregon and Washington (the “Menasha Acquisition”). On May 10, 2016 (the “acquisition date”), essentially all of the net assets of Olympus were distributed to the Company and FIA, resulting in the Company owning an identified portfolio of 61,000 acres of the former Menasha timberland for a final purchase price of approximately $263 million. Business Combination Accounting The distribution of net assets from Olympus to Rayonier has been accounted for as a business combination. Accordingly, the consideration paid by the Company has been recorded to the assets acquired and liabilities assumed based upon their estimated fair values as of the date of acquisition. In determining the fair value of the timberlands, the Company utilized valuation methodologies including a discounted cash flow analysis. A sales comparison approach was utilized to determine the fair market value of property, plant and equipment. The carrying values for current assets and liabilities were deemed to approximate their fair values due to the short-term nature of these assets and liabilities. Rayonier’s share of acquisition costs of $1.3 million is included in “Other operating income, net.” As of the filing date of this report, the Company has not completed its final accounting related to this acquisition. As a result, preliminary estimates have been recorded and are subject to change. Any necessary adjustments from the preliminary estimates will be finalized as soon as practicable but within one year from the date of acquisition. Measurement period adjustments will be recorded in the period in which they are determined, as if they had been completed at the acquisition date. The Company is currently in the process of finalizing its valuations related to the following: Timber and timberlands, Property, plant and equipment, Other current and non-current assets and Other current and non-current liabilities. The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the acquisition date:
Operating Results and Unaudited Pro Forma Financial Information The net income effect resulting from the Menasha acquisition for the three and nine months ended September 30, 2016 is impracticable to determine, as the Company immediately integrated Menasha into its ongoing operations. Additionally, pro forma information has not been provided, as the portion of Menasha acquired was a component of a larger legal entity and separate historical financial statements were not prepared. Since stand-alone financial information prior to the acquisition was not readily available, compilation of such data is impracticable. Washington Disposition In May 2016, the Company completed a disposition of approximately 55,000 acres located in Washington to FIA (the “Washington disposition”) for a sale price of approximately $130 million. The proceeds received from the disposition were used to finance a portion of the Menasha Acquisition. The remainder of the acquisition was financed by entering into an incremental term loan agreement with CoBank, ACB, as administrative agent, and a syndicate of Farm Credit institutions to provide a 10-year, $300 million incremental term loan. See Note 5 — Debt for additional information. |
JOINT VENTURE INVESTMENT |
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Equity Method Investments and Joint Ventures [Abstract] | |
Joint Venture Investment | JOINT VENTURE INVESTMENT Matariki Forestry Group On March 3, 2016, the Company made a capital contribution into Matariki Forestry Group (the "New Zealand JV"), a joint venture that owns or leases approximately 0.4 million legal acres of New Zealand timberlands, for the purpose of refinancing approximately NZ$235 million of New Zealand JV indebtedness and paying related fees and expenses, including the costs of settling out-of-the-money interest rate swaps. As a result of the capital contribution, the Company's ownership interest in the New Zealand JV increased from 65% to 77%. As a result of the increase in ownership percentage, the pro-rata share of the New Zealand JV’s unrealized foreign currency and cash flow hedge losses were reallocated between the Company and the noncontrolling interest. In accordance with Accounting Standards Codification (“ASC”) 810-10-45-24, this reallocation resulted in a reduction to the common share balance. The Company maintains a controlling financial interest in the New Zealand JV and, accordingly, consolidates the New Zealand JV’s Balance Sheet and results of operations. The portions of the consolidated financial position and results of operations attributable to the New Zealand JV’s 23% noncontrolling interest are shown separately within the Consolidated Statements of Income and Comprehensive Income and Consolidated Statements of Shareholders’ Equity. Rayonier New Zealand Limited (“RNZ”), a wholly-owned subsidiary of Rayonier Inc., serves as the manager of the New Zealand JV. |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment and Geographical Information | SEGMENT AND GEOGRAPHICAL INFORMATION Sales between operating segments are made based on estimated fair market value and intercompany sales, purchases and profits (losses) are eliminated in consolidation. The Company evaluates financial performance based on segment operating income and Adjusted EBITDA. Asset information is not reported by segment, as the Company does not produce asset information by segment internally. Operating income as presented in the Consolidated Statements of Income and Comprehensive Income (Loss) is equal to segment income. Certain income (loss) items in the Consolidated Statements of Income and Comprehensive Income (Loss) are not allocated to segments. These items, which include gains (losses) from certain asset dispositions, interest income (expense), miscellaneous income (expense) and income tax (expense) benefit, are not considered by management to be part of segment operations and are included under “Corporate and other” or “unallocated interest expense and other.” The following tables summarize the segment information for the three and nine months ended September 30, 2016 and 2015:
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | DEBT Rayonier’s debt consisted of the following at September 30, 2016:
Principal payments due during the next five years and thereafter are as follows:
Incremental Term Loan Agreement On April 28, 2016, the Company entered into an incremental term loan agreement with CoBank, ACB, as administrative agent, and a syndicate of Farm Credit institutions to provide a 10-year, $300 million incremental term loan. Proceeds from the term loan were used to fund Rayonier’s portion of the Menasha acquisition net of the proceeds received from the Washington disposition, to repay approximately $105 million outstanding on the Company’s revolving credit facility and for general corporate purposes. The Company has entered into interest rate swap transactions to fix the cost of the term loan over its 10-year term. The periodic interest rate on the incremental term loan agreement is LIBOR plus 1.900%. The Company receives annual patronage payments, which are profit distributions made by a cooperative to its member-users based on the quantity or value of business done with the member-user. The Company estimates the effective interest rate for the third quarter was approximately 2.8% after consideration of the estimated patronage payments and interest rate swaps. Term Credit Agreement On August 5, 2015, the Company entered into a credit agreement with CoBank, ACB, as administrative agent, and a syndicate of Farm Credit institutions and other commercial banks to provide $550 million of new credit facilities, including a five-year $200 million unsecured revolving credit facility (see below) and a nine-year $350 million term loan facility. The Company has entered into interest rate swap transactions to fix the cost of the term loan facility over its nine-year term. The periodic interest rate on the term credit agreement is LIBOR plus 1.625%. The Company estimates the effective interest rate for the third quarter was approximately 3.3% after consideration of the estimated patronage payments and interest rate swaps. Revolving Credit Facility In August 2015, the Company entered into a five-year $200 million unsecured revolving credit facility, replacing the previous $200 million revolving credit facility and $100 million farm credit facility, which were scheduled to expire in April 2016 and December 2019, respectively. The periodic interest rate on the revolving credit facility is LIBOR plus 1.250%, with an unused commitment fee of 0.175%. Net borrowings of $25.0 million were made in the third quarter of 2016 on the revolving credit facility. At September 30, 2016, the Company had available borrowings of $169.5 million under the revolving credit facility, net of $5.5 million to secure its outstanding letters of credit. Joint Venture Debt On March 3, 2016, the Company used proceeds from the term loan facility to fund a capital contribution into the New Zealand JV. The New Zealand JV in turn used the proceeds for full repayment of the outstanding amount of $155 million under its Tranche A credit facility. In June 2016, the New Zealand JV entered into a 12-month NZ$20.0 million working capital facility and an 18-month NZ$20.0 million working capital facility, replacing the previous NZ$40.0 million facility that expired in June 2016. During the nine months ended September 30, 2016, the New Zealand JV made additional borrowings and repayments of $146.1 million on the facility. Draws totaling $29.2 million remain available on the working capital facilities at September 30, 2016. In addition, the New Zealand JV paid $2.6 million of its shareholder loan held with the non-controlling interest party during the nine months ended September 30, 2016. Changes in exchange rates increased debt on a U.S. dollar basis for its shareholder loan by $1.4 million. Debt Covenants In connection with the Company’s $350 million term credit agreement, $300 million incremental term loan agreement and $200 million revolving credit facility, customary covenants must be met, the most significant of which include interest coverage and leverage ratios. In addition to these financial covenants, the mortgage notes, senior notes, term credit agreement, incremental term loan agreement and revolving credit facility include customary covenants that limit the incurrence of debt and the disposition of assets, among others. At September 30, 2016, the Company was in compliance with all applicable covenants. |
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS |
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Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Higher and Better Use Timberlands and Real Estate Development Investments | HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS Rayonier continuously assesses potential alternative uses of its timberlands, as some properties may become more valuable for development, residential, recreation or other purposes. The Company periodically transfers, via a sale or contribution from the real estate investment trust (“REIT”) entities to taxable REIT subsidiaries (“TRS”), higher and better use (“HBU”) timberlands to enable land-use entitlement, development or marketing activities. The Company also acquires HBU properties in connection with timberland acquisitions. These properties are managed as timberlands until sold or developed. While the majority of HBU sales involve rural and recreational land, the Company also selectively pursues various land-use entitlements on certain properties for residential, commercial and industrial development in order to enhance the long-term value of such properties. For selected development properties, Rayonier also invests in targeted infrastructure improvements, such as roadways and utilities, to accelerate the marketability and improve the value of such properties. An analysis of higher and better use timberlands and real estate development costs from December 31, 2015 to September 30, 2016 is shown below:
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments | COMMITMENTS The Company leases certain buildings, machinery, and equipment under various operating leases. The Company also has long-term lease agreements on certain timberlands in the Southern U.S. and New Zealand. U.S. leases typically have initial terms of approximately 30 to 65 years, with renewal provisions in some cases. New Zealand timberland lease terms range between 30 and 99 years. Such leases are generally non-cancellable and require minimum annual rental payments. At September 30, 2016, the future minimum payments under non-cancellable operating and timberland leases were as follows:
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Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | INCOME TAXES The operations conducted by the Company’s REIT entities are generally not subject to U.S. federal and state income tax. The New Zealand JV is subject to corporate level tax in New Zealand. Non-REIT qualifying operations are conducted by the Company’s TRS. The primary businesses performed in Rayonier’s TRS include log trading and certain real estate activities, such as the sale and entitlement of development HBU properties. Provision for Income Taxes The Company’s effective tax rate is below the 35.0% U.S. statutory rate due to tax benefits associated with being a REIT. The income tax expense (benefit) for the three and nine months ended September 30, 2016 and 2015 are principally related to the New Zealand JV. The table below reconciles the U.S. statutory rate to the Company’s effective tax rate for each period presented:
(a) Cellulosic biofuels producer credit. |
CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||
Contingencies | CONTINGENCIES Following the Company’s November 10, 2014 earnings release and filing of the restated interim financial statements for the quarterly periods ended March 31, 2014 and June 30, 2014 (the “November 2014 Announcement”), shareholders of the Company filed five putative class actions against the Company and Paul G. Boynton, Hans E. Vanden Noort, David L. Nunes, and H. Edwin Kiker arising from circumstances described in the November 2014 Announcement, entitled respectively:
On January 9, 2015, the five securities actions were consolidated into one putative class action entitled In re Rayonier Inc. Securities Litigation, Case No. 3:14-cv-01395-TJC-JBT, in the United States District Court for the Middle District of Florida. The plaintiffs alleged that the defendants made false and/or misleading statements in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The plaintiffs sought unspecified monetary damages and attorneys’ fees and costs. Two shareholders, the Pension Trust Fund for Operating Engineers and the Lake Worth Firefighters’ Pension Trust Fund moved for appointment as lead plaintiff on January 12, 2015, which was granted on February 25, 2015. On April 7, 2015, the plaintiffs filed a Consolidated Class Action Complaint (the “Consolidated Complaint”). In the Consolidated Complaint, plaintiffs added allegations as to and added as a defendant N. Lynn Wilson, a former officer of Rayonier. With the filing of the Consolidated Complaint, David L. Nunes and H. Edwin Kiker were dropped from the case as defendants. Defendants timely filed Motions to Dismiss the Consolidated Complaint on May 15, 2015. After oral argument on Defendants' motions on August 25, 2015, the Court dismissed the Consolidated Complaint without prejudice, allowing plaintiffs leave to refile. Plaintiffs filed the Amended Consolidated Class Action Complaint (the “Amended Complaint”) on September 25, 2015, which continued to assert claims against the Company, as well as Ms. Wilson and Messrs. Boynton and Vanden Noort. Defendants timely filed Motions to Dismiss the Amended Complaint on October 26, 2015. The court denied those motions on May 20, 2016. The case is now in the discovery phase. At this preliminary stage, the Company cannot determine whether there is a reasonable likelihood a material loss has been incurred nor can the range of any such loss be estimated. On November 26, 2014, December 29, 2014, January 26, 2015, February 13, 2015, and May 12, 2015, the Company received separate letters from shareholders requesting that the Company investigate or pursue derivative claims against certain officers and directors related to the November 2014 Announcement. Although these demands do not identify any claims against the Company, the Company has certain obligations to advance expenses and provide indemnification to certain current and former officers and directors of the Company. The Company has also incurred expenses as a result of costs arising from the investigation of the claims alleged in the various demands. At this preliminary stage, the ultimate outcome of these matters cannot be predicted, nor can the range of potential expenses the Company may incur as a result of the obligations identified above be estimated. The Company has also been named as a defendant in various other lawsuits and claims arising in the normal course of business. While the Company has procured reasonable and customary insurance covering risks normally occurring in connection with its businesses, it has in certain cases retained some risk through the operation of self-insurance, primarily in the areas of workers’ compensation, property insurance and general liability. These pending lawsuits and claims, either individually or in the aggregate, are not expected to have a material adverse effect on the Company’s financial position, results of operations, or cash flow. |
GUARANTEES |
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Guarantees [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantees | GUARANTEES The Company provides financial guarantees as required by creditors, insurance programs, and various governmental agencies. As of September 30, 2016, the following financial guarantees were outstanding:
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EARNINGS PER COMMON SHARE |
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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:
(a) Rayonier did not issue additional shares upon maturity of the Senior Exchangeable Notes due August 2015 (the “2015 Notes”) due to offsetting hedges. ASC 260, Earnings Per Share required the assumed conversion of the 2015 Notes to be included in dilutive shares if the average stock price for the period exceeded the strike price, while the conversion of the hedges was excluded since they were anti-dilutive. The full dilutive effect of the 2015 Notes was included for the prior period presented. Rayonier did not distribute additional shares upon the February 2016 maturity of the warrants sold in conjunction with the 2015 Notes as the stock price did not exceed $28.11 per share. The warrants were not dilutive for the nine months ended September 30, 2016 and 2015 as the average stock price for the periods the warrants were outstanding did not exceed the strike price. |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments and Hedging Activities | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES The Company is exposed to market risk related to potential fluctuations in foreign currency exchange rates and interest rates. The Company uses derivative financial instruments to mitigate the financial impact of exposure to these risks. Accounting for derivative financial instruments is governed by ASC Topic 815, Derivatives and Hedging, (“ASC 815”). In accordance with ASC 815, the Company records its derivative instruments at fair value as either assets or liabilities in the Consolidated Balance Sheets. Changes in the instruments’ fair value are accounted for based on their intended use. Gains and losses on derivatives that are designated and qualify for cash flow hedge accounting are recorded as a component of accumulated other comprehensive income (“AOCI”) and reclassified into earnings when the hedged transaction materializes. Gains and losses on derivatives that are designated and qualify for net investment hedge accounting are recorded as a component of AOCI and will not be reclassified into earnings until the Company’s investment in its New Zealand operations is partially or completely liquidated. The ineffective portion of any hedge, changes in the fair value of derivatives not designated as hedging instruments and those which are no longer effective as hedging instruments, are recognized immediately in earnings. The Company’s hedge ineffectiveness was de minimis for all periods presented. Foreign Currency Exchange and Option Contracts The functional currency of Rayonier’s wholly owned subsidiary, Rayonier New Zealand Limited, and the New Zealand JV is the New Zealand dollar. The New Zealand JV is exposed to foreign currency risk on export sales and ocean freight payments which are mainly denominated in U.S. dollars. The New Zealand JV typically hedges 35% to 90% of its estimated foreign currency exposure with respect to the following three months forecasted sales and purchases, 25% to 75% of forecasted sales and purchases for the forward three to 12 months and up to 50% of the forward 12 to 18 months. Foreign currency exposure from the New Zealand JV’s trading operations is typically hedged based on the following three months forecasted sales and purchases. As of September 30, 2016, foreign currency exchange contracts and foreign currency option contracts had maturity dates through November 2017. Foreign currency exchange and option contracts hedging foreign currency risk on export sales and ocean freight payments qualify for cash flow hedge accounting. The fair value of foreign currency exchange contracts is determined by a mark-to-market valuation which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate. The fair value of foreign currency option contracts is based on a mark-to-market calculation using the Black-Scholes option pricing model. The Company may de-designate these cash flow hedge relationships in advance or at the occurrence of the forecasted transaction. The portion of gains or losses on the derivative instrument previously accumulated in other comprehensive income for de-designated hedges remains in accumulated other comprehensive income until the forecasted transaction affects earnings. Changes in the value of derivative instruments after de-designation are recorded in earnings. In August 2015, the Company entered into foreign currency option contracts (notional amount of $332 million) to mitigate the risk of fluctuations in foreign currency exchange rates when translating the New Zealand JV’s balance sheet to U.S. dollars. These contracts hedged a portion of the Company’s net investment in New Zealand and qualified as a net investment hedge. The fair value of these contracts was determined by a mark-to-market valuation, which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate. The hedges qualified for hedge accounting whereby fluctuations in fair market value during the life of the hedge are recorded in AOCI and remain there permanently unless a partial or full liquidation of the investment is made. At each reporting period, the Company reviews the hedges for ineffectiveness. Ineffectiveness can occur when changes to the investment or the hedged instrument are made such that the risk of foreign exchange movements are no longer mitigated by the hedging instrument. At that time, the amount related to the ineffectiveness of the hedge is recorded into earnings. The Company did not have any ineffectiveness during the life of the hedges. The foreign currency option contracts matured on February 3, 2016. On February 1, 2016, the Company entered into foreign currency option contracts (notional amounts of $159.7 million and $154.6 million) to mitigate the risk of fluctuations in foreign exchange rates when funding the capital contribution to the New Zealand JV. On February 29, 2016, the contracts were settled for a net premium of $0.3 million. The gain on these contracts was recorded in “Other operating income, net” as they did not qualify for hedge accounting treatment. On February 29, 2016, the Company purchased a foreign exchange forward contract (notional amount $159.5 million) to mitigate the risk of fluctuations in foreign exchange rate contracts when funding the capital contribution to the New Zealand JV. The contract matured on March 3, 2016, resulting in a gain of $0.9 million. The gain on this contract was recorded in “Other operating income, net” as it did not qualify for hedge accounting treatment. Interest Rate Swaps The Company used interest rate swaps to manage the New Zealand JV’s exposure to interest rate movements on its variable rate debt attributable to changes in the New Zealand Bank bill rate. On March 3, 2016, as part of the capital contribution into the New Zealand JV, the Company settled all remaining New Zealand JV interest rate swaps for $9.3 million. Initially, these hedges qualified for hedge accounting; however, upon consolidation of the New Zealand JV in 2013, the hedges no longer qualified, requiring all future changes in the fair market value of the hedges to be recorded in earnings. The Company is exposed to cash flow interest rate risk on its variable-rate Term Credit Agreement and Incremental Term Loan Agreement (as discussed below), and uses variable-to-fixed interest rate swaps to hedge this exposure. For these derivative instruments, the Company reports the gains/losses from the fluctuations in the fair market value of the hedges in AOCI and reclassifies them to earnings as interest expense in the same period in which the hedged interest payments affect earnings. In August 2015, the Company entered into a nine-year interest rate swap agreement for a notional amount of $170 million. This swap agreement fixes the variable portion of the interest rate on the Term Credit Agreement borrowings due 2024 from LIBOR to an average rate of 2.20%. Together with the bank margin of 1.63%, this results in a rate of 3.83% before estimated patronage payments. This derivative instrument has been designated as an interest rate cash flow hedge and qualifies for hedge accounting. Also, in August 2015, the Company entered into a nine-year forward interest rate swap agreement with a start date in April 2016 for a notional amount of $180 million. This swap agreement fixes the variable portion of the interest rate on the Term Credit Agreement borrowings due 2024 from LIBOR to an average rate of 2.35%. Together with the bank margin of 1.63%, this results in a rate of 3.97% before estimated patronage payments. This derivative instrument has been designated as an interest rate cash flow hedge and qualifies for hedge accounting. In April 2016, the Company entered into two ten-year interest rate swap agreements, each for a notional amount of $100 million. These swap agreements fix the variable portion of the interest rate on the Incremental Term Loan borrowings due 2026 to an average rate of 1.60%. Together with the bank margin of 1.90%, this results in a rate of 3.50% before estimated patronage payments. These derivative instruments have been designated as interest rate cash flow hedges and qualify for hedge accounting. On July 7, 2016, the Company entered into an interest rate swap agreement for a notional amount of $100 million through May 2026. This swap agreement fixes the variable portion of the interest rate on the Incremental Term Loan borrowings due 2026 from LIBOR to an average rate of 1.26%. Together with the bank margin of 1.90%, this results in a rate of 3.16% before estimated patronage payments. This derivative instrument has been designated as an interest rate cash flow hedge and qualifies for hedge accounting. The following tables demonstrate the impact of the Company’s derivatives on the Consolidated Statements of Income and Comprehensive Income for the three and nine months ended September 30, 2016 and 2015.
During the next 12 months, the amount of the September 30, 2016 AOCI balance, net of tax, expected to be reclassified into earnings as a result of the maturation of the Company’s derivative instruments is a gain of approximately $1.8 million. The following table contains the notional amounts of the derivative financial instruments recorded in the Consolidated Balance Sheets:
The following table contains the fair values of the derivative financial instruments recorded in the Consolidated Balance Sheets:
Offsetting Derivatives Derivative financial instruments are presented at their gross fair values in the Consolidated Balance Sheets. The Company’s derivative financial instruments are not subject to master netting arrangements, which would allow the right of offset. |
FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair Value of Financial Instruments A three-level hierarchy that prioritizes the inputs used to measure fair value was established in the Accounting Standards Codification as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than quoted prices included in Level 1. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. (a) The following table presents the carrying amount and estimated fair values of financial instruments held by the Company at September 30, 2016 and December 31, 2015, using market information and what the Company believes to be appropriate valuation methodologies under generally accepted accounting principles:
Rayonier uses the following methods and assumptions in estimating the fair value of its financial instruments: Cash and cash equivalents and Restricted cash — The carrying amount is equal to fair market value. Debt — The fair value of fixed rate debt is based upon quoted market prices for debt with similar terms and maturities. The variable rate debt adjusts with changes in the market rate, therefore the carrying value approximates fair value. Interest rate swap agreements — The fair value of interest rate contracts is determined by discounting the expected future cash flows, for each instrument, at prevailing interest rates. Foreign currency exchange contracts — The fair value of foreign currency exchange contracts is determined by a mark-to-market valuation which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate. Foreign currency option contracts — The fair value of foreign currency option contracts is based on a mark-to-market calculation using the Black-Scholes option pricing model. |
EMPLOYEE BENEFIT PLANS |
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Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS The Company has one qualified non-contributory defined benefit pension plan covering a portion of its employees and an unfunded plan that provides benefits in excess of amounts allowable under current tax law in the qualified plan. Currently, the pension plan is closed to new participants. Employee benefit plan liabilities are calculated using actuarial estimates and management assumptions. These estimates are based on historical information, along with certain assumptions about future events. Changes in assumptions, as well as changes in actual experience, could cause the estimates to change. In 2016, the Company has no mandatory pension contribution requirement. The net pension and postretirement benefit costs that have been recorded are shown in the following table:
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OTHER OPERATING INCOME, NET |
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Other Income and Expenses [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Operating Income, Net | OTHER OPERATING INCOME, NET Other operating income, net comprised the following:
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INVENTORY |
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Inventory | INVENTORY As of September 30, 2016 and December 31, 2015, Rayonier’s inventory was solely comprised of finished goods, as follows:
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RESTRICTED DEPOSITS |
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Restricted Cash and Investments [Abstract] | |
Restricted Deposits | RESTRICTED DEPOSITS In order to qualify for like-kind exchange (“LKE”) treatment, the proceeds from real estate sales must be deposited with a third-party intermediary. These proceeds are accounted for as restricted cash until a suitable replacement property is acquired. In the event LKE purchases are not completed, the proceeds are returned to the Company after 180 days and reclassified as available cash. As of September 30, 2016 and December 31, 2015, the Company had $1.1 million and $23.5 million, respectively, of proceeds from real estate sales classified as restricted cash in “Other Assets,” which includes cash deposited with an LKE intermediary as well as cash held in escrow for a real estate sale. |
ASSETS HELD FOR SALE ASSETS HELD FOR SALE |
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Property, Plant and Equipment [Abstract] | |
Assets Held For Sale | ASSETS HELD FOR SALE During the three months ended September 30, 2016, the Company entered in to three separate contracts to sell a total of 62,100 acres of timberland in Alabama and Mississippi for $119.7 million. The basis in these properties of $47.4 million is classified as assets held for sale in the Consolidated Balance Sheet as of September 30, 2016 as the properties are expected to be sold within the next 12 months and meet the other relevant held-for-sale criteria in accordance with ASC 360-10-45-9. Two of these transactions will close in October 2016, and the remaining transaction is expected to close in January 2017. Subsequent Event See Note 1 — Basis of Presentation for additional information on subsequent events. |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
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Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) The following table summarizes the changes in AOCI by component for the nine months ended September 30, 2016 and the year ended December 31, 2015. All amounts are presented net of tax and exclude portions attributable to noncontrolling interest.
The following table presents details of the amounts reclassified in their entirety from AOCI to net income for the nine months ended September 30, 2016 and September 30, 2015:
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CONSOLIDATING FINANCIAL STATEMENTS |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidating Financial Statements | 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 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, Rayonier Operating Company LLC (“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.
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BASIS OF PRESENTATION (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reclassifications | Reclassifications Certain 2015 amounts have been reclassified to conform with the current year presentation, including changes in balance sheet presentation. During the first quarter of 2016, the Company reclassified capitalized debt costs related to non-revolving debt from Other Assets to Long Term Debt as a result of the adoption of Accounting Standards Update (“ASU”) No. 2015-03, Interest - Imputation of Interest (Subtopic 835-50) - Simplifying the Presentation of Debt Issuance Costs, which is required to be applied on a retrospective basis. This reclassification is reflected in the September 30, 2016 and December 31, 2015 Consolidated Balance Sheets. A corresponding change has also been made to the Consolidated Statement of Cash Flows for both periods presented. |
New Accounting Standards | New Accounting Standards In August 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which addresses the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. This Update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU No. 2016-15 is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. ASU No. 2016-15 is required to be applied retrospectively to all periods presented beginning in the period of adoption. Early adoption is permitted. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. This update simplifies the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU No. 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Rayonier intends to adopt ASU No. 2016-09 in the Company’s first quarter 2017 Form 10-Q. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships, which clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815 does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU No. 2016-05 is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Rayonier intends to adopt ASU No. 2016-05 in the Company’s first quarter 2017 Form 10-Q and does not expect it will have an impact on the consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize most leases on their balance sheets related to the rights and obligations created by those leases. ASU No. 2016-02 also requires additional qualitative and quantitative disclosures related to the nature, timing and uncertainty of cash flows arising from leases. ASU No. 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. ASU No. 2016-02 is required to be applied retrospectively to all periods presented beginning in the period of adoption. Early adoption is permitted. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. In May 2014, the FASB and International Accounting Standards Board (“IASB”) jointly issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), a comprehensive new revenue recognition standard that will supersede current revenue recognition guidance. The guidance provides a unified model to determine when and how revenue is recognized and will require enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers - Deferral of the Effective Date. ASU No. 2015-14 provides a one-year deferral of the effective date of the new standard, with an option for organizations to adopt early based on the original effective date. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers—Identifying Performance Obligations and Licensing. The update clarifies the guidance for identifying performance obligations. In May 2016, the FASB issued ASU. No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. The update clarifies the guidance for assessing collectibility, presenting sales taxes and other similar taxes collected from customers, noncash consideration, contract modifications at transition, completed contracts at transition and disclosing the accounting change in the period of adoption. This standard will be effective for Rayonier beginning January 1, 2018 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements and has completed a preliminary analysis of the specific impacts to our Southern Timber, Pacific Northwest Timber, New Zealand Timber and Real Estate segments. |
Segment Reporting | Sales between operating segments are made based on estimated fair market value and intercompany sales, purchases and profits (losses) are eliminated in consolidation. The Company evaluates financial performance based on segment operating income and Adjusted EBITDA. Asset information is not reported by segment, as the Company does not produce asset information by segment internally. Operating income as presented in the Consolidated Statements of Income and Comprehensive Income (Loss) is equal to segment income. Certain income (loss) items in the Consolidated Statements of Income and Comprehensive Income (Loss) are not allocated to segments. These items, which include gains (losses) from certain asset dispositions, interest income (expense), miscellaneous income (expense) and income tax (expense) benefit, are not considered by management to be part of segment operations and are included under “Corporate and other” or “unallocated interest expense and other.” |
Derivatives | Accounting for derivative financial instruments is governed by ASC Topic 815, Derivatives and Hedging, (“ASC 815”). In accordance with ASC 815, the Company records its derivative instruments at fair value as either assets or liabilities in the Consolidated Balance Sheets. Changes in the instruments’ fair value are accounted for based on their intended use. Gains and losses on derivatives that are designated and qualify for cash flow hedge accounting are recorded as a component of accumulated other comprehensive income (“AOCI”) and reclassified into earnings when the hedged transaction materializes. Gains and losses on derivatives that are designated and qualify for net investment hedge accounting are recorded as a component of AOCI and will not be reclassified into earnings until the Company’s investment in its New Zealand operations is partially or completely liquidated. The ineffective portion of any hedge, changes in the fair value of derivatives not designated as hedging instruments and those which are no longer effective as hedging instruments, are recognized immediately in earnings. |
Derivatives, Offsetting Fair Value Amounts | Derivative financial instruments are presented at their gross fair values in the Consolidated Balance Sheets. The Company’s derivative financial instruments are not subject to master netting arrangements, which would allow the right of offset. |
Fair Value | The fair value of foreign currency exchange contracts is determined by a mark-to-market valuation which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate. The fair value of foreign currency option contracts is based on a mark-to-market calculation using the Black-Scholes option pricing model. Rayonier uses the following methods and assumptions in estimating the fair value of its financial instruments: Cash and cash equivalents and Restricted cash — The carrying amount is equal to fair market value. Debt — The fair value of fixed rate debt is based upon quoted market prices for debt with similar terms and maturities. The variable rate debt adjusts with changes in the market rate, therefore the carrying value approximates fair value. Interest rate swap agreements — The fair value of interest rate contracts is determined by discounting the expected future cash flows, for each instrument, at prevailing interest rates. Foreign currency exchange contracts — The fair value of foreign currency exchange contracts is determined by a mark-to-market valuation which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate. Foreign currency option contracts — The fair value of foreign currency option contracts is based on a mark-to-market calculation using the Black-Scholes option pricing model. |
Consolidation 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. |
TIMBERLAND ACQUISITION (Tables) |
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Combination | The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the acquisition date:
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SEGMENT AND GEOGRAPHICAL INFORMATION (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The following tables summarize the segment information for the three and nine months ended September 30, 2016 and 2015:
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DEBT (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-Term Debt Instruments | Rayonier’s debt consisted of the following at September 30, 2016:
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Schedule of Maturities of Long-Term Debt | Principal payments due during the next five years and thereafter are as follows:
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HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (Tables) |
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Costs for Land, Timber and Real Estate Development | An analysis of higher and better use timberlands and real estate development costs from December 31, 2015 to September 30, 2016 is shown below:
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COMMITMENTS (Tables) |
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Minimum Payments | At September 30, 2016, the future minimum payments under non-cancellable operating and timberland leases were as follows:
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INCOME TAXES (Tables) |
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | The table below reconciles the U.S. statutory rate to the Company’s effective tax rate for each period presented:
(a) Cellulosic biofuels producer credit. |
GUARANTEES (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantees [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Guarantor Obligations | As of September 30, 2016, the following financial guarantees were outstanding:
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EARNINGS PER COMMON SHARE (Tables) |
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following table provides details of the calculations of basic and diluted earnings per common share:
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Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share |
(a) Rayonier did not issue additional shares upon maturity of the Senior Exchangeable Notes due August 2015 (the “2015 Notes”) due to offsetting hedges. ASC 260, Earnings Per Share required the assumed conversion of the 2015 Notes to be included in dilutive shares if the average stock price for the period exceeded the strike price, while the conversion of the hedges was excluded since they were anti-dilutive. The full dilutive effect of the 2015 Notes was included for the prior period presented. Rayonier did not distribute additional shares upon the February 2016 maturity of the warrants sold in conjunction with the 2015 Notes as the stock price did not exceed $28.11 per share. The warrants were not dilutive for the nine months ended September 30, 2016 and 2015 as the average stock price for the periods the warrants were outstanding did not exceed the strike price. |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables demonstrate the impact of the Company’s derivatives on the Consolidated Statements of Income and Comprehensive Income for the three and nine months ended September 30, 2016 and 2015.
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Schedule of Notional Amounts of Outstanding Derivative Positions | The following table contains the notional amounts of the derivative financial instruments recorded in the Consolidated Balance Sheets:
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Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table contains the fair values of the derivative financial instruments recorded in the Consolidated Balance Sheets:
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FAIR VALUE MEASUREMENTS (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, by Balance Sheet Grouping | The following table presents the carrying amount and estimated fair values of financial instruments held by the Company at September 30, 2016 and December 31, 2015, using market information and what the Company believes to be appropriate valuation methodologies under generally accepted accounting principles:
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EMPLOYEE BENEFIT PLANS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Net Periodic Benefit Cost | The net pension and postretirement benefit costs that have been recorded are shown in the following table:
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OTHER OPERATING INCOME, NET (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest and Other Income | Other operating income, net comprised the following:
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INVENTORY (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory | As of September 30, 2016 and December 31, 2015, Rayonier’s inventory was solely comprised of finished goods, as follows:
months. |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in AOCI by component for the nine months ended September 30, 2016 and the year ended December 31, 2015. All amounts are presented net of tax and exclude portions attributable to noncontrolling interest.
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Reclassification out of Accumulated Other Comprehensive Income | The following table presents details of the amounts reclassified in their entirety from AOCI to net income for the nine months ended September 30, 2016 and September 30, 2015:
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CONSOLIDATING FINANCIAL STATEMENTS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Consolidating Statements of (Loss) Income and Comprehensive (Loss) Income |
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Schedule of Condensed Consolidating Balance Sheets |
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Schedule of Condensed Consolidating Statements of Cash Flows |
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BASIS OF PRESENTATION (Narrative) (Details) - Subsequent Event a in Thousands, $ in Millions |
Oct. 21, 2016
USD ($)
a
sale_transaction
|
---|---|
Subsequent Event [Line Items] | |
Number of sales transactions | sale_transaction | 2 |
Acres of timberland divested | a | 37 |
Proceeds from sale of property | $ | $ 77.8 |
TIMBERLAND ACQUISITION (Narrative) (Details) a in Thousands |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|---|
May 10, 2016
USD ($)
a
|
Apr. 28, 2016
USD ($)
|
May 31, 2016
USD ($)
a
|
Sep. 30, 2016
USD ($)
a
|
Sep. 30, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
a
|
Sep. 30, 2015
USD ($)
|
|
Business Acquisition [Line Items] | |||||||
Acres of timberland owned | a | 400 | 400 | |||||
Acres of timberlands acquired | a | 61 | ||||||
Purchase price | $ 263,000,000 | ||||||
Acquisition related costs | $ 91,000 | $ 0 | $ 1,306,000 | $ 0 | |||
Debt carrying amount | $ 1,068,522,000 | 1,068,522,000 | |||||
Incremental Term Loan Agreement | |||||||
Business Acquisition [Line Items] | |||||||
Debt instrument, term | 10 years | 10 years | |||||
Debt carrying amount | $ 300,000,000 | $ 300,000,000 | |||||
Disposal Group, Not Discontinued Operations | |||||||
Business Acquisition [Line Items] | |||||||
Acres of timberland divested | a | 55 | ||||||
Consideration received from sale | $ 130,000,000 | ||||||
Rayonier Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition related costs | $ 1,300,000 | ||||||
Menasha Forest Products Corporation | |||||||
Business Acquisition [Line Items] | |||||||
Acres of timberland owned | a | 132 | 132 |
TIMBERLAND ACQUISITION (Schedule of Business Combination) (Details) - Menasha Acquisition $ in Thousands |
May 10, 2016
USD ($)
|
---|---|
Business Acquisition [Line Items] | |
Timber and timberlands | $ 263,073 |
Property, plant and equipment | 1,554 |
Other current and non-current assets | 280 |
Total identifiable assets acquired | 264,907 |
Other current and non-current liabilities | 1,503 |
Total liabilities assumed | 1,503 |
Net identifiable assets (purchase price) | 263,404 |
Seeds and seedling acquired | $ 800 |
JOINT VENTURE INVESTMENT (Details) a in Millions, NZD in Millions |
Mar. 03, 2016
NZD
|
Sep. 30, 2016
a
|
Mar. 02, 2016 |
---|---|---|---|
Schedule of Equity Method Investments [Line Items] | |||
Acres of timberland owned | a | 0.4 | ||
Ownership percentage by parent | 77.00% | 65.00% | |
Step acquisition percentage equity interest in acquiree | 23.00% | ||
Revolving Credit Facility Due 2016 Variable Interest Rate | |||
Schedule of Equity Method Investments [Line Items] | |||
Refinanced amount | NZD | NZD 235 |
SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Segment Sales) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Segment Reporting Information [Line Items] | ||||
SALES | $ 171,421 | $ 151,657 | $ 567,814 | $ 407,764 |
Operating Segments | Southern Timber | ||||
Segment Reporting Information [Line Items] | ||||
SALES | 27,826 | 34,797 | 102,205 | 103,009 |
Operating Segments | Pacific Northwest Timber | ||||
Segment Reporting Information [Line Items] | ||||
SALES | 16,139 | 21,549 | 52,316 | 57,805 |
Operating Segments | New Zealand Timber | ||||
Segment Reporting Information [Line Items] | ||||
SALES | 42,179 | 41,065 | 125,951 | 121,482 |
Operating Segments | Real Estate | ||||
Segment Reporting Information [Line Items] | ||||
SALES | 60,626 | 35,232 | 211,296 | 65,968 |
Operating Segments | Trading | ||||
Segment Reporting Information [Line Items] | ||||
SALES | $ 24,651 | $ 19,014 | 76,046 | $ 59,500 |
Disposal Group, Not Discontinued Operations | Timberland | Real Estate | ||||
Segment Reporting Information [Line Items] | ||||
SALES | $ 129,500 |
SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Operating Income (Loss)) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Segment Reporting Information [Line Items] | ||||
Total Operating Income | $ 49,689 | $ 27,779 | $ 194,253 | $ 62,050 |
Unallocated interest expense and other | (8,286) | (9,139) | (24,718) | (28,858) |
INCOME BEFORE INCOME TAXES | 41,403 | 18,640 | 169,535 | 33,192 |
Operating Segments | Southern Timber | ||||
Segment Reporting Information [Line Items] | ||||
Total Operating Income | 8,183 | 10,504 | 34,976 | 34,694 |
Operating Segments | Pacific Northwest Timber | ||||
Segment Reporting Information [Line Items] | ||||
Total Operating Income | (3,293) | 3,081 | (874) | 7,356 |
Operating Segments | New Zealand Timber | ||||
Segment Reporting Information [Line Items] | ||||
Total Operating Income | 6,613 | (915) | 21,385 | 3,834 |
Operating Segments | Real Estate | ||||
Segment Reporting Information [Line Items] | ||||
Total Operating Income | 43,078 | 20,001 | 152,997 | 34,004 |
Operating Segments | Trading | ||||
Segment Reporting Information [Line Items] | ||||
Total Operating Income | 481 | 428 | 1,456 | 614 |
Corporate and other | ||||
Segment Reporting Information [Line Items] | ||||
Total Operating Income | $ (5,373) | $ (5,320) | (15,687) | $ (18,452) |
Disposal Group, Not Discontinued Operations | Timberland | Real Estate | ||||
Segment Reporting Information [Line Items] | ||||
Total Operating Income | $ (101,300) |
SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Depreciation, Depletion and Amortization) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Segment Reporting Information [Line Items] | ||||
Depreciation | $ 31,978 | $ 31,958 | $ 105,618 | $ 85,784 |
Operating Segments | Southern Timber | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation | 9,988 | 14,404 | 37,102 | 41,356 |
Operating Segments | Pacific Northwest Timber | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation | 6,668 | 4,189 | 14,978 | 10,920 |
Operating Segments | New Zealand Timber | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation | 5,956 | 7,021 | 17,252 | 22,207 |
Operating Segments | Real Estate | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation | 9,260 | 6,269 | 35,988 | 11,087 |
Operating Segments | Trading | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation | 0 | 0 | 0 | 0 |
Corporate and other | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation | $ 106 | $ 75 | 298 | $ 214 |
Disposal Group, Not Discontinued Operations | Timberland | Real Estate | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation | $ 21,900 |
SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Non-Cash Cost of Land and Improved Development) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Segment Reporting Information [Line Items] | ||||
Non-cash cost of Improved Development | $ 4,336 | $ 4,594 | $ 11,916 | $ 9,532 |
Operating Segments | Southern Timber | ||||
Segment Reporting Information [Line Items] | ||||
Non-cash cost of Improved Development | 0 | 0 | 0 | 0 |
Operating Segments | Pacific Northwest Timber | ||||
Segment Reporting Information [Line Items] | ||||
Non-cash cost of Improved Development | 0 | 0 | 0 | 0 |
Operating Segments | New Zealand Timber | ||||
Segment Reporting Information [Line Items] | ||||
Non-cash cost of Improved Development | 0 | 0 | 1,824 | 0 |
Operating Segments | Real Estate | ||||
Segment Reporting Information [Line Items] | ||||
Non-cash cost of Improved Development | 4,336 | 4,594 | 10,092 | 9,532 |
Operating Segments | Trading | ||||
Segment Reporting Information [Line Items] | ||||
Non-cash cost of Improved Development | 0 | 0 | 0 | 0 |
Corporate and other | ||||
Segment Reporting Information [Line Items] | ||||
Non-cash cost of Improved Development | $ 0 | $ 0 | 0 | $ 0 |
Timberland | Disposal Group, Not Discontinued Operations | Real Estate | ||||
Segment Reporting Information [Line Items] | ||||
Non-cash cost of Improved Development | $ 1,800 |
DEBT (Schedule of Long Term Debt) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 1,068,774 | |
Less: Current maturities of long-term debt | (31,752) | $ 0 |
Less: Deferred financing costs | (3,734) | |
Long-term debt, net of deferred financing costs | 1,033,288 | $ 830,554 |
Senior Notes due 2022 at a fixed interest rate of 3.75% | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 325,000 | |
Fixed interest rate | 3.75% | |
Incremental Term Loan Agreement borrowings due 2026 at a variable interest rate of 2.4% at September 30, 2016 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 300,000 | |
Variable interest rate | 2.40% | |
Mortgage notes due 2017 at fixed interest rates of 4.35% | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 31,752 | |
Fixed interest rate | 4.35% | |
Revolving Credit Facility borrowings due 2020 at a variable interest rate of 1.8% at September 30, 2016 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 25,000 | |
Variable interest rate | 1.80% | |
Solid waste bond due 2020 at a variable interest rate of 2.1% at September 30, 2016 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 15,000 | |
Variable interest rate | 2.10% | |
New Zealand JV noncontrolling interest shareholder loan at 0% interest rate | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 22,022 | |
Fixed interest rate | 0.00% | |
Term Loan Facility | Term Credit Agreement borrowings due 2024 at a variable interest rate of 2.1% at September 30, 2016 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 350,000 | |
Variable interest rate | 2.10% |
DEBT (Schedule of Long Term Maturities) (Details) $ in Thousands |
Sep. 30, 2016
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2016 | $ 0 |
2017 | 31,500 |
2018 | 0 |
2019 | 0 |
2020 | 40,000 |
Thereafter | 997,022 |
Total Debt | 1,068,522 |
Debt instrument, unamortized premium | $ 300 |
DEBT (Narrative) (Details) |
1 Months Ended | 2 Months Ended | 3 Months Ended | 9 Months Ended | |||||
---|---|---|---|---|---|---|---|---|---|
Apr. 28, 2016
USD ($)
|
Mar. 03, 2016
USD ($)
|
Aug. 05, 2015
USD ($)
|
Jun. 30, 2016
NZD
|
May 31, 2016
USD ($)
|
Aug. 31, 2015
USD ($)
|
Jun. 30, 2016
USD ($)
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2016
USD ($)
|
|
Debt Instrument [Line Items] | |||||||||
Debt carrying amount | $ 1,068,522,000 | $ 1,068,522,000 | |||||||
Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of debt | $ 105,000,000 | ||||||||
Proceeds from line of credit | 25,000,000 | ||||||||
Unsecured Revolving Credit Agreement Expiring 2020 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, term | 5 years | ||||||||
Basis points on periodic interest rate | 1.25% | ||||||||
Maximum borrowing capacity | $ 200,000,000 | $ 200,000,000 | |||||||
Basis point credit line fee | 0.175% | ||||||||
Remaining borrowing capacity | $ 169,500,000 | $ 169,500,000 | |||||||
Revolving Credit Facility Due 2016 | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 200,000,000 | ||||||||
Farm Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | 100,000,000 | ||||||||
Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 550,000,000 | ||||||||
Incremental Term Loan Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, term | 10 years | 10 years | |||||||
Debt carrying amount | $ 300,000,000 | $ 300,000,000 | |||||||
Basis points on periodic interest rate | 1.90% | ||||||||
Periodic effective interest rate | 2.80% | 2.80% | |||||||
Term Credit Agreement | Term Loan Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, term | 9 years | ||||||||
Debt carrying amount | $ 350,000,000 | ||||||||
Basis points on periodic interest rate | 1.625% | ||||||||
Periodic effective interest rate | 2.10% | 2.10% | |||||||
Maximum borrowing capacity | $ 350,000,000 | ||||||||
Derivative variable interest rate | 3.30% | 3.30% | |||||||
Term Credit Agreement | Unsecured Revolving Credit Agreement Expiring 2020 | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, term | 5 years | ||||||||
Maximum borrowing capacity | $ 200,000,000 | ||||||||
Tranche A | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of lines of credit | $ 155,000,000 | ||||||||
New Zealand JV Noncontrolling Interest | Long-term Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Increase in debt due to favorable changes in exchange rates | $ 1,400,000 | ||||||||
New Zealand JV | Working Capital Facility | Line of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Remaining borrowing capacity | $ 29,200,000 | 29,200,000 | |||||||
Repayments of lines of credit | 146,100,000 | ||||||||
New Zealand JV | Working Capital Facility, 12 month | Working Capital Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, term | 12 months | ||||||||
Maximum borrowing capacity | NZD | NZD 20,000,000.0 | ||||||||
New Zealand JV | Working Capital Facility, 18 month | Working Capital Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, term | 18 months | ||||||||
Maximum borrowing capacity | NZD | NZD 20,000,000.0 | ||||||||
New Zealand JV | Working Capital Facility, Expired in June 2016 | Working Capital Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | NZD | NZD 40,000,000.0 | ||||||||
New Zealand JV | New Zealand JV Noncontrolling Interest | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of debt | 2,600,000 | ||||||||
Standby Letters of Credit | Unsecured Revolving Credit Agreement Expiring 2020 | |||||||||
Debt Instrument [Line Items] | |||||||||
Amount to secure outstanding letters of credit | $ 5,500,000 | $ 5,500,000 |
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (Analysis of Higher and Better Use Timberlands and Real Estate Development Investments) (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2016
USD ($)
| |
Real Estate, Land and Land Development Costs [Roll Forward] | |
Non-current portion, Beginning Balance | $ 65,450 |
Plus: Current portion, Beginning Balance | 12,252 |
Total Balance, Beginning Balance | 77,702 |
Non-cash cost of land and improved development | (1,763) |
Timber depletion from harvesting activities and basis of timber sold in real estate sales | (1,123) |
Capitalized real estate development investments | 4,815 |
Capital expenditures (silviculture) | 153 |
Intersegment transfers | 4 |
Total Balance, Ending Balance | 79,788 |
Less: Current portion, Ending Balance | (9,464) |
Non-current portion, Ending Balance | 70,324 |
Capitalized interest | 100 |
Land and Timber | |
Real Estate, Land and Land Development Costs [Roll Forward] | |
Non-current portion, Beginning Balance | 57,897 |
Plus: Current portion, Beginning Balance | 6,019 |
Total Balance, Beginning Balance | 63,916 |
Non-cash cost of land and improved development | (1,612) |
Timber depletion from harvesting activities and basis of timber sold in real estate sales | (1,123) |
Capitalized real estate development investments | 0 |
Capital expenditures (silviculture) | 153 |
Intersegment transfers | 4 |
Total Balance, Ending Balance | 61,338 |
Less: Current portion, Ending Balance | (3,930) |
Non-current portion, Ending Balance | 57,408 |
Development Investments | |
Real Estate, Land and Land Development Costs [Roll Forward] | |
Non-current portion, Beginning Balance | 7,553 |
Plus: Current portion, Beginning Balance | 6,233 |
Total Balance, Beginning Balance | 13,786 |
Non-cash cost of land and improved development | (151) |
Timber depletion from harvesting activities and basis of timber sold in real estate sales | 0 |
Capitalized real estate development investments | 4,815 |
Capital expenditures (silviculture) | 0 |
Intersegment transfers | 0 |
Total Balance, Ending Balance | 18,450 |
Less: Current portion, Ending Balance | (5,534) |
Non-current portion, Ending Balance | $ 12,916 |
COMMITMENTS (Narrative) (Details) - Timberland Leases |
9 Months Ended |
---|---|
Sep. 30, 2016 | |
United States | Minimum | |
Loss Contingencies [Line Items] | |
Contract terms, in years | 30 years |
United States | Maximum | |
Loss Contingencies [Line Items] | |
Contract terms, in years | 65 years |
New Zealand | Minimum | |
Loss Contingencies [Line Items] | |
Contract terms, in years | 30 years |
New Zealand | Maximum | |
Loss Contingencies [Line Items] | |
Contract terms, in years | 99 years |
COMMITMENTS (Future Minimum Payments) (Details) $ in Thousands |
9 Months Ended |
---|---|
Sep. 30, 2016
USD ($)
lease
| |
Commitments [Abstract] | |
Remaining 2016 | $ 5,120 |
2017 | 13,786 |
2018 | 9,193 |
2019 | 9,193 |
2020 | 9,193 |
Thereafter | 37,393 |
Commitments, total | 83,878 |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Remaining 2016 | 9,476 |
2017 | 26,037 |
2018 | 19,538 |
2019 | 18,884 |
2020 | 18,351 |
Thereafter | 202,166 |
Total | 294,452 |
Operating Leases | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Remaining 2016 | 518 |
2017 | 1,657 |
2018 | 902 |
2019 | 725 |
2020 | 605 |
Thereafter | 1,770 |
Operating leases, total | 6,177 |
Timberland Leases | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Remaining 2016 | 3,838 |
2017 | 10,594 |
2018 | 9,443 |
2019 | 8,966 |
2020 | 8,553 |
Thereafter | 163,003 |
Operating leases, total | $ 204,397 |
Matariki Crown Forest Licenses | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Future Minimum Payments Included, years | 20 years |
Lessee Leasing Arrangements, Operating Leases, Termination Notice, years | 35 years |
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 1 year |
Number of Leases Under Termination Notice | lease | 4 |
Number of Leases Under Termination Notice, Expiring 2044-2049 | lease | 2 |
Number of Leases Under Termination Notice, Expiring 2062 | lease | 2 |
INCOME TAXES (Provision for Income Taxes from Continuing Operations - Narrative) (Details) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Income Tax Disclosure [Abstract] | ||||
U.S. federal statutory tax rate, percentage | 35.00% | 35.00% | 35.00% | 35.00% |
INCOME TAXES (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Income tax expense at federal statutory rate | $ 14,491 | $ 6,524 | $ 59,337 | $ 11,617 |
U.S. and foreign REIT income & U.S. TRS taxable losses | (11,487) | (9,259) | (55,801) | (16,260) |
Foreign TRS operations | (312) | (1,466) | (626) | (3,029) |
U.S. net deferred tax asset valuation allowance | (1,741) | 2,742 | 2,654 | 5,360 |
Other | (70) | 90 | 137 | 175 |
Income tax expense (benefit) before discrete items | 881 | (1,369) | 5,701 | (2,137) |
CBPC(a) valuation allowance | 0 | 997 | 0 | 997 |
Return-to-accrual adjustments | (171) | (169) | (171) | (169) |
Tax benefit recognized related to changes in the New Zealand JV deferred tax inventory | (1,833) | 0 | ||
Purchase accounting deferred tax benefit | (1,423) | 0 | ||
Other | 69 | 0 | ||
Income tax expense (benefit) as reported | $ 779 | $ (541) | $ 2,274 | $ (1,309) |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
Income tax expense at federal statutory rate | 35.00% | 35.00% | 35.00% | 35.00% |
U.S. and foreign REIT income & U.S. TRS taxable losses | (27.70%) | (49.60%) | (32.90%) | (48.90%) |
Foreign TRS operations | (0.80%) | (7.90%) | (0.40%) | (9.10%) |
U.S. net deferred tax asset valuation allowance | (4.20%) | 14.70% | 1.60% | 16.10% |
Other | (0.20%) | 0.50% | 0.10% | 0.50% |
Income tax expense (benefit) before discrete items | 2.10% | (7.30%) | 3.40% | (6.40%) |
CBPC(a) valuation allowance | 0.00% | 5.30% | 0.00% | 3.00% |
Return-to-accrual adjustments | (0.40%) | (0.90%) | (0.10%) | (0.50%) |
Tax benefit recognized related to changes in the New Zealand JV deferred tax inventory | (1.10%) | 0.00% | ||
Purchase accounting deferred tax benefit | (0.90%) | 0.00% | ||
Other | 0.20% | 0.00% | ||
Income tax expense (benefit) as reported | 1.90% | (2.90%) | 1.30% | (3.90%) |
CONTINGENCIES (Details) |
Jan. 09, 2015
claim
plaintiff
|
Nov. 10, 2014
claim
|
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Number of claims filed | 5 | |
Number of consolidated claims filed | 1 | |
Number of lead plaintiffs | plaintiff | 2 |
GUARANTEES (Details) $ in Thousands |
Sep. 30, 2016
USD ($)
|
---|---|
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | $ 23,667 |
Carrying Amount of Associated Liability | 15,043 |
Standby letters of credit | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | 20,642 |
Carrying Amount of Associated Liability | 15,000 |
Guarantor obligations collateral for industrial revenue bonds | 15,000 |
Guarantees | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | 2,254 |
Carrying Amount of Associated Liability | 43 |
Surety bonds | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | 771 |
Carrying Amount of Associated Liability | 0 |
Bonds | Standby letters of credit | |
Guarantor Obligations [Line Items] | |
Letter of credit for development project | $ 3,800 |
EARNINGS PER COMMON SHARE (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
Earnings Per Share [Abstract] | |||||
Net income (loss) | $ 40,624 | $ 19,181 | $ 167,261 | $ 34,501 | $ 43,941 |
Less: Net income (loss) attributable to noncontrolling interest | 1,269 | (488) | 3,613 | (1,379) | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | $ 39,355 | $ 19,669 | $ 163,648 | $ 35,880 | |
Shares used for determining basic earnings per common share (in shares) | 122,597,927 | 125,143,706 | 122,574,094 | 126,125,802 | |
Dilutive effect of: | |||||
Stock options (in shares) | 113,849 | 91,495 | 88,594 | 129,906 | |
Performance and restricted shares (in shares) | 170,857 | 31,051 | 120,212 | 37,064 | |
Assumed conversion of senior exchangeable notes (in shares) | 0 | 39,720 | 0 | 477,931 | |
Shares used for determining diluted earnings per common share (in shares) | 122,882,633 | 125,305,972 | 122,782,900 | 126,770,703 | |
Basic earnings (loss) per common share attributable to Rayonier Inc. (in dollars per share) | $ 0.32 | $ 0.16 | $ 1.34 | $ 0.28 | |
Diluted earnings (loss) per common share attributable to Rayonier Inc. (in dollars per share) | $ 0.32 | $ 0.16 | $ 1.33 | $ 0.28 |
EARNINGS PER COMMON SHARE (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares excluded from the computations of diluted earnings per share (in shares) | 745,878 | 1,034,269 | 863,244 | 1,384,513 |
Stock options, performance and restricted shares | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares excluded from the computations of diluted earnings per share (in shares) | 745,878 | 994,549 | 863,244 | 906,582 |
Assumed conversion of exchangeable note hedges | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares excluded from the computations of diluted earnings per share (in shares) | 0 | 39,720 | 0 | 477,931 |
Warrants on Senior Exchangeable Notes due 2015 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Exercise price of warrants (USD per share) | $ 28.11 | $ 28.11 |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Narrative) (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 03, 2016
USD ($)
|
Feb. 29, 2016
USD ($)
|
Apr. 30, 2016
USD ($)
derivative_agreement
|
Aug. 31, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Jul. 07, 2016
USD ($)
|
Feb. 01, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
|
Derivative [Line Items] | |||||||||||
Gain (loss) on sale of derivatives | $ 9,300 | ||||||||||
Foreign Exchange Option - Contract 2 | |||||||||||
Derivative [Line Items] | |||||||||||
Notional amount | $ 154,600 | ||||||||||
Foreign currency option contracts | |||||||||||
Derivative [Line Items] | |||||||||||
Notional amount | $ 332,000 | $ 159,700 | |||||||||
Foreign Exchange Forward | |||||||||||
Derivative [Line Items] | |||||||||||
Notional amount | $ 159,500 | ||||||||||
Interest rate swaps | |||||||||||
Derivative [Line Items] | |||||||||||
Notional amount | $ 100,000 | $ 170,000 | |||||||||
Derivative, term of contract | 10 years | 9 years | |||||||||
Derivative, average rate | 1.60% | 2.20% | |||||||||
Derivative, basis spread on variable rate | 1.90% | 1.625% | |||||||||
Derivative, fixed interest rate | 3.50% | 3.83% | |||||||||
Number of interest rate derivatives held | derivative_agreement | 2 | ||||||||||
Forward Interest Rate Swap | |||||||||||
Derivative [Line Items] | |||||||||||
Notional amount | $ 180,000 | ||||||||||
Derivative, term of contract | 9 years | ||||||||||
Derivative, average rate | 2.35% | ||||||||||
Derivative, fixed interest rate | 3.97% | ||||||||||
Not Designated as Hedging Instrument | Interest rate swaps | |||||||||||
Derivative [Line Items] | |||||||||||
Notional amount | $ 0 | $ 0 | $ 130,169 | ||||||||
Minimum | |||||||||||
Derivative [Line Items] | |||||||||||
Percent of forecast sales and purchases hedged for three months | 35.00% | 35.00% | |||||||||
Percent of forecast sales and purchases hedged for three to 12 months | 25.00% | 25.00% | |||||||||
Percent of forecast sales and purchases hedged for 12 to 18 months | 50.00% | 50.00% | |||||||||
Minimum | Foreign Currency Exchange and Option Contracts, Scale 2 | |||||||||||
Derivative [Line Items] | |||||||||||
Length of time, foreign currency cash flow hedge | 3 months | ||||||||||
Minimum | Foreign Currency Exchange and Option Contracts, Scale 3 | |||||||||||
Derivative [Line Items] | |||||||||||
Length of time, foreign currency cash flow hedge | 12 months | ||||||||||
Maximum | |||||||||||
Derivative [Line Items] | |||||||||||
Percent of forecast sales and purchases hedged for three months | 90.00% | 90.00% | |||||||||
Percent of forecast sales and purchases hedged for three to 12 months | 75.00% | 75.00% | |||||||||
Maximum | Foreign Currency Exchange and Option Contracts, Scale 2 | |||||||||||
Derivative [Line Items] | |||||||||||
Length of time, foreign currency cash flow hedge | 12 months | ||||||||||
Maximum | Foreign Currency Exchange and Option Contracts, Scale 3 | |||||||||||
Derivative [Line Items] | |||||||||||
Length of time, foreign currency cash flow hedge | 18 months | ||||||||||
Other operating income, net | Not Designated as Hedging Instrument | Foreign currency option contracts | |||||||||||
Derivative [Line Items] | |||||||||||
Gain on derivative | $ 300 | $ 0 | $ 847 | $ 258 | $ 1,394 | ||||||
Other operating income, net | Not Designated as Hedging Instrument | Foreign currency exchange contracts | |||||||||||
Derivative [Line Items] | |||||||||||
Gain on derivative | $ 900 | 895 | $ 0 | ||||||||
Cash Flow Hedging | Designated as Hedging Instrument | |||||||||||
Derivative [Line Items] | |||||||||||
AOCI (loss) balance expected to be reclassified in next twelve months, net of tax | 1,800 | ||||||||||
Cash Flow Hedging | Designated as Hedging Instrument | Foreign currency option contracts | |||||||||||
Derivative [Line Items] | |||||||||||
Notional amount | 70,500 | 70,500 | 107,200 | ||||||||
Cash Flow Hedging | Designated as Hedging Instrument | Foreign currency exchange contracts | |||||||||||
Derivative [Line Items] | |||||||||||
Notional amount | 25,390 | 25,390 | 21,250 | ||||||||
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | |||||||||||
Derivative [Line Items] | |||||||||||
Notional amount | $ 650,000 | $ 650,000 | $ 350,000 | ||||||||
Derivative, average variable interest rate | 3.16% | ||||||||||
Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Contract | |||||||||||
Derivative [Line Items] | |||||||||||
Notional amount | $ 100,000 | ||||||||||
Derivative, average rate | 1.26% | ||||||||||
Derivative, basis spread on variable rate | 1.90% |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Income Statement Location) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Mar. 03, 2016 |
Feb. 29, 2016 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Designated as Hedging Instrument | Foreign currency exchange contracts | Other comprehensive income (loss) | Cash Flow Hedging | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Designated hedged item, gain (loss) recognized in other comprehensive income | $ 259 | $ (289) | $ 2,075 | $ (2,597) | ||
Designated as Hedging Instrument | Foreign currency exchange contracts | Other comprehensive income (loss) | Net Investment Hedging | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Designated hedged item, gain (loss) recognized in other comprehensive income | 0 | 1,151 | (4,606) | 4,258 | ||
Designated as Hedging Instrument | Foreign currency option contracts | Other comprehensive income (loss) | Cash Flow Hedging | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Designated hedged item, gain (loss) recognized in other comprehensive income | 635 | (788) | 2,564 | (4,127) | ||
Designated as Hedging Instrument | Foreign currency option contracts | Other comprehensive income (loss) | Net Investment Hedging | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Designated hedged item, gain (loss) recognized in other comprehensive income | 0 | 2,084 | 0 | 2,084 | ||
Designated as Hedging Instrument | Interest rate swaps | Other comprehensive income (loss) | Cash Flow Hedging | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Designated hedged item, gain (loss) recognized in other comprehensive income | 3,529 | (13,644) | (25,459) | (13,644) | ||
Not Designated as Hedging Instrument | Foreign currency exchange contracts | Other operating income, net | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Designated hedged item, gain (loss) recognized in income | $ 900 | 895 | 0 | |||
Not Designated as Hedging Instrument | Foreign currency option contracts | Other operating income, net | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Designated hedged item, gain (loss) recognized in income | $ 300 | 0 | 847 | 258 | 1,394 | |
Not Designated as Hedging Instrument | Interest rate swaps | Interest income and miscellaneous income (expense), net | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Non-designated hedged item, gain (loss) recognized in income | $ 0 | $ (1,650) | $ (1,219) | $ 4,923 |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Notional Amounts) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Apr. 30, 2016 |
Feb. 01, 2016 |
Dec. 31, 2015 |
Aug. 31, 2015 |
---|---|---|---|---|---|
Foreign currency option contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | $ 159,700 | $ 332,000 | |||
Interest rate swaps | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | $ 100,000 | $ 170,000 | |||
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency exchange contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | $ 25,390 | $ 21,250 | |||
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency option contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 70,500 | 107,200 | |||
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 650,000 | 350,000 | |||
Designated as Hedging Instrument | Net Investment Hedging | Foreign currency option contracts | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 0 | 331,588 | |||
Not Designated as Hedging Instrument | Interest rate swaps | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | $ 0 | $ 130,169 |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Balance Sheet Location) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | $ 3,467 | $ 5,641 |
Fair value, derivative liability | (36,229) | (21,546) |
Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 3,082 | 5,233 |
Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 385 | 408 |
Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (515) | (2,866) |
Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (35,714) | (18,680) |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 1,173 | 43 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency exchange contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 142 | 0 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency exchange contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (342) | (1,449) |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency exchange contracts | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | 0 | (219) |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency option contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 1,909 | 560 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency option contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 243 | 408 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency option contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (173) | (1,393) |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency option contracts | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (59) | (217) |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (35,655) | (10,197) |
Designated as Hedging Instrument | Net Investment Hedging | Foreign currency option contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 0 | 4,630 |
Designated as Hedging Instrument | Net Investment Hedging | Foreign currency option contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | 0 | (24) |
Not Designated as Hedging Instrument | Interest rate swaps | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | $ 0 | $ (8,047) |
FAIR VALUE MEASUREMENTS (Fair Values Measured on Recurring Basis) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 110,039 | $ 51,777 |
Restricted cash | 1,095 | 23,525 |
Current maturities of long-term debt | 31,752 | 0 |
Long-term debt | (1,033,288) | (830,554) |
Carrying Amount | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | (35,655) | (18,244) |
Carrying Amount | Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | (1,625) | |
Foreign currency contracts | 973 | |
Carrying Amount | Foreign currency option contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 1,920 | 3,964 |
Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 110,039 | 51,777 |
Restricted cash | 1,095 | 23,525 |
Current maturities of long-term debt | 0 | 0 |
Long-term debt | 0 | 0 |
Fair Value | Level 1 | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 0 | 0 |
Fair Value | Level 1 | Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 0 | |
Foreign currency contracts | 0 | |
Fair Value | Level 1 | Foreign currency option contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 0 | 0 |
Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Current maturities of long-term debt | 32,403 | 0 |
Long-term debt | (1,049,210) | (830,203) |
Fair Value | Level 2 | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | (35,655) | (18,244) |
Fair Value | Level 2 | Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | (1,625) | |
Foreign currency contracts | 973 | |
Fair Value | Level 2 | Foreign currency option contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | $ 1,920 | $ 3,964 |
EMPLOYEE BENEFIT PLANS (Narrative) (Details) |
9 Months Ended |
---|---|
Sep. 30, 2016
pension_plan
| |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Number of qualified defined benefit plans | 1 |
EMPLOYEE BENEFIT PLANS (Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Pension | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 327 | $ 371 | $ 980 | $ 1,113 |
Interest cost | 869 | 830 | 2,606 | 2,489 |
Expected return on plan assets | (1,008) | (1,007) | (3,023) | (3,020) |
Amortization of prior service cost | 0 | 3 | 0 | 10 |
Amortization of losses (gains) | 632 | 950 | 1,893 | 2,799 |
Net periodic benefit cost | 820 | 1,147 | 2,456 | 3,391 |
Postretirement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 2 | 3 | 5 | 8 |
Interest cost | 12 | 13 | 36 | 39 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of losses (gains) | 0 | 3 | (12) | 9 |
Net periodic benefit cost | $ 14 | $ 19 | $ 29 | $ 56 |
OTHER OPERATING INCOME, NET (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Other Income and Expenses [Abstract] | ||||
Lease income, primarily from hunting leases | $ 3,769 | $ 4,349 | $ 13,991 | $ 14,348 |
Other non-timber income | 666 | 581 | 1,721 | 2,634 |
Foreign currency income (loss) | 533 | (149) | 34 | 67 |
Gain on sale or disposal of property and equipment | 58 | 4 | 81 | 6 |
Loss on foreign currency exchange and option contracts | (333) | (2,297) | (1,406) | (3,290) |
Deferred payment related to a prior land sale | 0 | 0 | 4,000 | 0 |
Costs related to acquisition | (91) | 0 | (1,306) | 0 |
Gain on foreign currency derivatives | 0 | 0 | 1,153 | 0 |
Gain on sale of carbon credits | 359 | 0 | 1,113 | 352 |
Miscellaneous income, net | 538 | 367 | 1,486 | 1,450 |
Total | $ 5,499 | $ 2,855 | $ 20,867 | $ 15,567 |
INVENTORY (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Inventory [Line Items] | ||
Inventory | $ 16,064 | $ 15,351 |
Real Estate Inventory | ||
Inventory [Line Items] | ||
Inventory | 9,464 | 12,252 |
Log inventory | ||
Inventory [Line Items] | ||
Inventory | $ 6,600 | $ 3,099 |
RESTRICTED DEPOSITS (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Dec. 31, 2015 |
|
Restricted Cash and Investments [Abstract] | ||
Maximum time period proceeds from LKE sale maintained with third party intermediary, days | 180 days | |
Restricted deposits | $ 1.1 | $ 23.5 |
ASSETS HELD FOR SALE (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Oct. 21, 2016
USD ($)
a
sale_transaction
|
Sep. 30, 2016
USD ($)
a
contract
|
|
Alabama and Mississippi Timberland | ||
Property, Plant and Equipment [Line Items] | ||
Number of separate contracts related to sale | contract | 3 | |
Acres of timberland divested | a | 62,100 | |
Future Proceeds Expected from Sale of Property Held-for-sale | $ 119.7 | |
Assets held for sale | $ 47.4 | |
Period expected for sales to finalize | 12 months | |
Subsequent Event | ||
Property, Plant and Equipment [Line Items] | ||
Acres of timberland divested | a | 37,000 | |
Proceeds from sale of property | $ 77.8 | |
Number of sales transactions | sale_transaction | 2 |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended |
---|---|---|---|
Sep. 30, 2015 |
Sep. 30, 2016 |
Dec. 31, 2015 |
|
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | $ (33,503) | $ (4,825) | |
Other comprehensive income/(loss) before reclassifications | 2,179 | (36,365) | |
Amounts reclassified from accumulated other comprehensive loss | (2,502) | 7,687 | |
Net other comprehensive income/(loss) | (323) | (28,678) | |
Recapitalization of New Zealand JV | 3,438 | ||
Ending balance | (30,388) | (33,503) | |
Foreign currency translation gains/ (losses) | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (2,450) | 25,533 | |
Other comprehensive income/(loss) before reclassifications | 25,133 | (27,983) | |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |
Net other comprehensive income/(loss) | 25,133 | (27,983) | |
Recapitalization of New Zealand JV | 3,622 | ||
Ending balance | 26,305 | (2,450) | |
Net investment hedges of New Zealand JV | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 6,271 | (145) | |
Other comprehensive income/(loss) before reclassifications | 0 | 6,416 | |
Amounts reclassified from accumulated other comprehensive loss | (4,606) | 0 | |
Net other comprehensive income/(loss) | (4,606) | 6,416 | |
Recapitalization of New Zealand JV | 0 | ||
Ending balance | 1,665 | 6,271 | |
Cash flow hedges | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (11,592) | (1,548) | |
Other comprehensive income/(loss) before reclassifications | (22,954) | (14,444) | |
Amounts reclassified from accumulated other comprehensive loss | 223 | 4,400 | |
Net other comprehensive income/(loss) | (22,731) | (10,044) | |
Recapitalization of New Zealand JV | (184) | ||
Ending balance | (34,507) | (11,592) | |
Employee benefit plans | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (25,732) | (28,665) | |
Other comprehensive income/(loss) before reclassifications | 0 | (354) | |
Amounts reclassified from accumulated other comprehensive loss | 1,881 | 3,287 | |
Net other comprehensive income/(loss) | 1,881 | 2,933 | |
Recapitalization of New Zealand JV | 0 | ||
Ending balance | (23,851) | $ (25,732) | |
Interest rate swaps | Cash flow hedges | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Other comprehensive income/(loss) before reclassifications | $ (10,200) | $ (25,500) |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclassified AOCI) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other operating income, net | $ 5,499 | $ 2,855 | $ 20,867 | $ 15,567 | |
Comprehensive income (loss) attributable to noncontrolling interest | (3,649) | 5,363 | (11,808) | 18,884 | |
Income tax (expense) benefit | $ 779 | $ (541) | 2,274 | (1,309) | |
Net loss from accumulated other comprehensive income | (2,502) | $ 7,687 | |||
Reclassification out of Accumulated Other Comprehensive Income | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Net loss from accumulated other comprehensive income | 223 | 3,312 | |||
Amount reclassified from accumulated other comprehensive income | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Net loss from accumulated other comprehensive income | 223 | $ 4,400 | |||
Amount reclassified from accumulated other comprehensive income | Reclassification out of Accumulated Other Comprehensive Income | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Comprehensive income (loss) attributable to noncontrolling interest | (235) | (2,477) | |||
Income tax (expense) benefit | (87) | (1,288) | |||
Amount reclassified from accumulated other comprehensive income | Foreign currency exchange contracts | Reclassification out of Accumulated Other Comprehensive Income | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other operating income, net | 43 | 3,928 | |||
Amount reclassified from accumulated other comprehensive income | Foreign currency option contracts | Reclassification out of Accumulated Other Comprehensive Income | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other operating income, net | $ 502 | $ 3,149 |
CONSOLIDATING FINANCIAL STATEMENTS (Narrative) (Details) - Senior Notes due 2022 at a fixed interest rate of 3.75% |
Mar. 31, 2012
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
Face amount | $ 325,000,000 |
Stated interest rate | 3.75% |
CONSOLIDATING FINANCIAL STATEMENTS (Condensed Consolidating Statements of (Loss) Income and Comprehensive (Loss) Income) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
Dec. 31, 2015 |
|
Income Statement [Abstract] | |||||
SALES | $ 171,421 | $ 151,657 | $ 567,814 | $ 407,764 | |
Cost of sales | 116,624 | 116,044 | 362,790 | 326,966 | |
Selling and general expenses | 10,607 | 10,689 | 31,638 | 34,315 | |
Other operating expense (income), net | (5,499) | (2,855) | (20,867) | (15,567) | |
Costs and Expenses, Total | 121,732 | 123,878 | 373,561 | 345,714 | |
OPERATING INCOME | 49,689 | 27,779 | 194,253 | 62,050 | |
Interest expense | (8,544) | (7,581) | (23,603) | (24,608) | |
Interest and miscellaneous income (expense), net | 258 | (1,558) | (1,115) | (4,250) | |
Equity in income from subsidiaries | 0 | 0 | 0 | 0 | |
INCOME BEFORE INCOME TAXES | 41,403 | 18,640 | 169,535 | 33,192 | |
Income tax (expense) benefit | (779) | 541 | (2,274) | 1,309 | |
NET INCOME | 40,624 | 19,181 | 167,261 | 34,501 | $ 43,941 |
Less: Net income attributable to noncontrolling interest | 1,269 | (488) | 3,613 | (1,379) | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 39,355 | 19,669 | 163,648 | 35,880 | |
Foreign currency translation adjustment | 12,022 | (13,370) | 28,046 | (53,087) | (32,451) |
New Zealand joint venture cash flow hedges | 4,195 | (14,120) | (22,055) | (17,983) | (9,961) |
Actuarial change and amortization of pension and postretirement plans, net of income tax | 632 | 890 | 1,881 | 2,414 | $ 2,933 |
Total other comprehensive income (loss) | 16,849 | (26,600) | 7,872 | (68,656) | |
COMPREHENSIVE INCOME (LOSS) | 57,473 | (7,419) | 175,133 | (34,155) | |
Less: Comprehensive income (loss) attributable to noncontrolling interest | 3,649 | (5,363) | 11,808 | (18,884) | |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO RAYONIER INC. | 53,824 | (2,056) | 163,325 | (15,271) | |
Consolidating Adjustments | |||||
Income Statement [Abstract] | |||||
SALES | 0 | 0 | 0 | 0 | |
Cost of sales | 0 | 0 | 0 | 0 | |
Selling and general expenses | 0 | 0 | 0 | 0 | |
Other operating expense (income), net | 0 | 0 | 0 | 0 | |
Costs and Expenses, Total | 0 | 0 | 0 | 0 | |
OPERATING INCOME | 0 | 0 | 0 | 0 | |
Interest expense | 0 | 0 | 0 | 0 | |
Interest and miscellaneous income (expense), net | 0 | 0 | 0 | 0 | |
Equity in income from subsidiaries | (90,610) | (47,563) | (355,307) | (97,667) | |
INCOME BEFORE INCOME TAXES | (90,610) | (47,563) | (355,307) | (97,667) | |
Income tax (expense) benefit | 0 | 0 | 0 | 0 | |
NET INCOME | (90,610) | (47,563) | (355,307) | (97,667) | |
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | (90,610) | (47,563) | (355,307) | (97,667) | |
Foreign currency translation adjustment | (9,791) | 17,324 | (20,529) | 74,201 | |
New Zealand joint venture cash flow hedges | (4,044) | 27,908 | 22,733 | 32,930 | |
Actuarial change and amortization of pension and postretirement plans, net of income tax | (632) | (1,007) | (1,881) | (2,546) | |
Total other comprehensive income (loss) | (14,467) | 44,225 | 323 | 104,585 | |
COMPREHENSIVE INCOME (LOSS) | (105,077) | (3,338) | (354,984) | 6,918 | |
Less: Comprehensive income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO RAYONIER INC. | (105,077) | (3,338) | (354,984) | 6,918 | |
Rayonier Inc. (Parent Issuer) | |||||
Income Statement [Abstract] | |||||
SALES | 0 | 0 | 0 | 0 | |
Cost of sales | 0 | 0 | 0 | 0 | |
Selling and general expenses | 0 | 0 | 0 | 0 | |
Other operating expense (income), net | 0 | 0 | 0 | 0 | |
Costs and Expenses, Total | 0 | 0 | 0 | 0 | |
OPERATING INCOME | 0 | 0 | 0 | 0 | |
Interest expense | (3,139) | (3,227) | (9,417) | (9,564) | |
Interest and miscellaneous income (expense), net | 2,199 | 1,980 | 6,346 | 5,787 | |
Equity in income from subsidiaries | 40,295 | 20,916 | 166,719 | 39,657 | |
INCOME BEFORE INCOME TAXES | 39,355 | 19,669 | 163,648 | 35,880 | |
Income tax (expense) benefit | 0 | 0 | 0 | 0 | |
NET INCOME | 39,355 | 19,669 | 163,648 | 35,880 | |
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 39,355 | 19,669 | 163,648 | 35,880 | |
Foreign currency translation adjustment | 9,793 | (8,662) | 20,529 | (37,100) | |
New Zealand joint venture cash flow hedges | 4,044 | (13,954) | (22,733) | (16,465) | |
Actuarial change and amortization of pension and postretirement plans, net of income tax | 632 | 890 | 1,881 | 2,414 | |
Total other comprehensive income (loss) | 14,469 | (21,726) | (323) | (51,151) | |
COMPREHENSIVE INCOME (LOSS) | 53,824 | (2,057) | 163,325 | (15,271) | |
Less: Comprehensive income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO RAYONIER INC. | 53,824 | (2,057) | 163,325 | (15,271) | |
Subsidiary Guarantors | |||||
Income Statement [Abstract] | |||||
SALES | 0 | 0 | 0 | 0 | |
Cost of sales | 0 | 0 | 0 | 0 | |
Selling and general expenses | 5,904 | 4,412 | 11,485 | 15,691 | |
Other operating expense (income), net | 190 | 16 | 378 | (445) | |
Costs and Expenses, Total | 6,094 | 4,428 | 11,863 | 15,246 | |
OPERATING INCOME | (6,094) | (4,428) | (11,863) | (15,246) | |
Interest expense | (5,150) | (2,240) | (11,678) | (7,304) | |
Interest and miscellaneous income (expense), net | 694 | 583 | 2,059 | 1,956 | |
Equity in income from subsidiaries | 50,315 | 26,647 | 188,588 | 58,010 | |
INCOME BEFORE INCOME TAXES | 39,765 | 20,562 | 167,106 | 37,416 | |
Income tax (expense) benefit | 530 | 354 | (387) | 2,241 | |
NET INCOME | 40,295 | 20,916 | 166,719 | 39,657 | |
Less: Net income attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 40,295 | 20,916 | 166,719 | 39,657 | |
Foreign currency translation adjustment | 0 | (8,662) | (4,607) | (37,100) | |
New Zealand joint venture cash flow hedges | 3,530 | (13,954) | (25,458) | (16,465) | |
Actuarial change and amortization of pension and postretirement plans, net of income tax | 632 | 890 | 1,881 | 2,414 | |
Total other comprehensive income (loss) | 4,162 | (21,726) | (28,184) | (51,151) | |
COMPREHENSIVE INCOME (LOSS) | 44,457 | (810) | 138,535 | (11,494) | |
Less: Comprehensive income (loss) attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO RAYONIER INC. | 44,457 | (810) | 138,535 | (11,494) | |
Non- guarantors | |||||
Income Statement [Abstract] | |||||
SALES | 171,421 | 151,657 | 567,814 | 407,764 | |
Cost of sales | 116,624 | 116,044 | 362,790 | 326,966 | |
Selling and general expenses | 4,703 | 6,277 | 20,153 | 18,624 | |
Other operating expense (income), net | (5,689) | (2,871) | (21,245) | (15,122) | |
Costs and Expenses, Total | 115,638 | 119,450 | 361,698 | 330,468 | |
OPERATING INCOME | 55,783 | 32,207 | 206,116 | 77,296 | |
Interest expense | (255) | (2,114) | (2,508) | (7,740) | |
Interest and miscellaneous income (expense), net | (2,635) | (4,121) | (9,520) | (11,993) | |
Equity in income from subsidiaries | 0 | 0 | 0 | 0 | |
INCOME BEFORE INCOME TAXES | 52,893 | 25,972 | 194,088 | 57,563 | |
Income tax (expense) benefit | (1,309) | 187 | (1,887) | (932) | |
NET INCOME | 51,584 | 26,159 | 192,201 | 56,631 | |
Less: Net income attributable to noncontrolling interest | 1,269 | (488) | 3,613 | (1,379) | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 50,315 | 26,647 | 188,588 | 58,010 | |
Foreign currency translation adjustment | 12,020 | (13,370) | 32,653 | (53,088) | |
New Zealand joint venture cash flow hedges | 665 | (14,120) | 3,403 | (17,983) | |
Actuarial change and amortization of pension and postretirement plans, net of income tax | 0 | 117 | 0 | 132 | |
Total other comprehensive income (loss) | 12,685 | (27,373) | 36,056 | (70,939) | |
COMPREHENSIVE INCOME (LOSS) | 64,269 | (1,214) | 228,257 | (14,308) | |
Less: Comprehensive income (loss) attributable to noncontrolling interest | 3,649 | (5,363) | 11,808 | (18,884) | |
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO RAYONIER INC. | $ 60,620 | $ 4,149 | $ 216,449 | $ 4,576 |
CONSOLIDATING FINANCIAL STATEMENTS (Condensed Consolidating Balance Sheets) (Details) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Dec. 31, 2014 |
---|---|---|---|---|
CURRENT ASSETS | ||||
Cash and cash equivalents | $ 110,039 | $ 51,777 | $ 65,755 | $ 161,558 |
Accounts receivable, less allowance for doubtful accounts | 24,731 | 20,222 | ||
Inventory | 16,064 | 15,351 | ||
Prepaid expenses | 12,564 | 12,654 | ||
Assets held for sale (Note 18) | 47,361 | 0 | ||
Other current assets | 3,369 | 5,681 | ||
Total current assets | 214,128 | 105,685 | ||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 2,325,489 | 2,066,780 | ||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 70,324 | 65,450 | ||
NET PROPERTY, PLANT AND EQUIPMENT | 11,076 | 6,742 | ||
INVESTMENT IN SUBSIDIARIES | 0 | 0 | ||
INTERCOMPANY NOTES RECEIVABLE | 0 | 0 | ||
OTHER ASSETS | 50,381 | 71,281 | ||
TOTAL ASSETS | 2,671,398 | 2,315,938 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 23,735 | 21,479 | ||
Current maturities of long-term debt | 31,752 | 0 | ||
Accrued taxes | 6,892 | 3,685 | ||
Accrued payroll and benefits | 6,224 | 7,037 | ||
Accrued interest | 8,313 | 6,153 | ||
Other current liabilities | 23,227 | 21,103 | ||
Total current liabilities | 100,143 | 59,457 | ||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 1,033,288 | 830,554 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 34,702 | 34,137 | ||
OTHER NON-CURRENT LIABILITIES | 54,684 | 30,050 | ||
INTERCOMPANY PAYABLE | 0 | 0 | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,361,185 | 1,288,084 | ||
Noncontrolling interest | 87,396 | 73,656 | ||
TOTAL SHAREHOLDERS’ EQUITY | 1,448,581 | 1,361,740 | 1,575,151 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,671,398 | 2,315,938 | ||
Consolidating Adjustments | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, less allowance for doubtful accounts | 0 | 0 | ||
Inventory | 0 | 0 | ||
Prepaid expenses | 0 | 0 | ||
Assets held for sale (Note 18) | 0 | |||
Other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 0 | 0 | ||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 0 | 0 | ||
NET PROPERTY, PLANT AND EQUIPMENT | 0 | 0 | ||
INVESTMENT IN SUBSIDIARIES | (3,983,472) | (3,534,086) | ||
INTERCOMPANY NOTES RECEIVABLE | 0 | 0 | ||
OTHER ASSETS | 0 | 0 | ||
TOTAL ASSETS | (3,983,472) | (3,534,086) | ||
CURRENT LIABILITIES | ||||
Accounts payable | 0 | 0 | ||
Current maturities of long-term debt | 0 | |||
Accrued taxes | 0 | 0 | ||
Accrued payroll and benefits | 0 | 0 | ||
Accrued interest | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 0 | 0 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 0 | 0 | ||
OTHER NON-CURRENT LIABILITIES | 0 | 0 | ||
INTERCOMPANY PAYABLE | 0 | 0 | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | (3,983,472) | (3,534,086) | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL SHAREHOLDERS’ EQUITY | (3,983,472) | (3,534,086) | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | (3,983,472) | (3,534,086) | ||
Rayonier Inc. (Parent Issuer) | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 59,966 | 2,472 | 12,955 | 102,218 |
Accounts receivable, less allowance for doubtful accounts | 0 | 0 | ||
Inventory | 0 | 0 | ||
Prepaid expenses | 0 | 0 | ||
Assets held for sale (Note 18) | 0 | |||
Other current assets | 0 | 0 | ||
Total current assets | 59,966 | 2,472 | ||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 0 | 0 | ||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 0 | 0 | ||
NET PROPERTY, PLANT AND EQUIPMENT | 0 | 0 | ||
INVESTMENT IN SUBSIDIARIES | 1,339,173 | 1,321,681 | ||
INTERCOMPANY NOTES RECEIVABLE | 23,396 | 34,567 | ||
OTHER ASSETS | 3 | 3 | ||
TOTAL ASSETS | 1,422,538 | 1,358,723 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 0 | 609 | ||
Current maturities of long-term debt | 31,752 | |||
Accrued taxes | 0 | 0 | ||
Accrued payroll and benefits | 0 | 0 | ||
Accrued interest | 6,094 | 3,047 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | 37,846 | 3,656 | ||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 291,222 | 322,697 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 0 | 0 | ||
OTHER NON-CURRENT LIABILITIES | 0 | 0 | ||
INTERCOMPANY PAYABLE | (267,715) | (255,714) | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,361,185 | 1,288,084 | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL SHAREHOLDERS’ EQUITY | 1,361,185 | 1,288,084 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 1,422,538 | 1,358,723 | ||
Subsidiary Guarantors | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 5,320 | 13,217 | 10,760 | 8,105 |
Accounts receivable, less allowance for doubtful accounts | 2,050 | 1,870 | ||
Inventory | 0 | 0 | ||
Prepaid expenses | 985 | 443 | ||
Assets held for sale (Note 18) | 0 | |||
Other current assets | 242 | 4,876 | ||
Total current assets | 8,597 | 20,406 | ||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 0 | 0 | ||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 0 | 0 | ||
NET PROPERTY, PLANT AND EQUIPMENT | 213 | 330 | ||
INVESTMENT IN SUBSIDIARIES | 2,644,299 | 2,212,405 | ||
INTERCOMPANY NOTES RECEIVABLE | (606,285) | (610,450) | ||
OTHER ASSETS | 21,937 | 18,718 | ||
TOTAL ASSETS | 2,068,761 | 1,641,409 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 2,106 | 1,463 | ||
Current maturities of long-term debt | 0 | |||
Accrued taxes | (149) | (10) | ||
Accrued payroll and benefits | 3,115 | 3,594 | ||
Accrued interest | 1,960 | 666 | ||
Other current liabilities | 372 | 262 | ||
Total current liabilities | 7,404 | 5,975 | ||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 663,292 | 280,978 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 35,386 | 34,822 | ||
OTHER NON-CURRENT LIABILITIES | 42,466 | 16,914 | ||
INTERCOMPANY PAYABLE | (18,960) | (18,961) | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,339,173 | 1,321,681 | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL SHAREHOLDERS’ EQUITY | 1,339,173 | 1,321,681 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,068,761 | 1,641,409 | ||
Non- guarantors | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 44,753 | 36,088 | $ 42,040 | $ 51,235 |
Accounts receivable, less allowance for doubtful accounts | 22,681 | 18,352 | ||
Inventory | 16,064 | 15,351 | ||
Prepaid expenses | 11,579 | 12,211 | ||
Assets held for sale (Note 18) | 47,361 | |||
Other current assets | 3,127 | 805 | ||
Total current assets | 145,565 | 82,807 | ||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 2,325,489 | 2,066,780 | ||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 70,324 | 65,450 | ||
NET PROPERTY, PLANT AND EQUIPMENT | 10,863 | 6,412 | ||
INVESTMENT IN SUBSIDIARIES | 0 | 0 | ||
INTERCOMPANY NOTES RECEIVABLE | 582,889 | 575,883 | ||
OTHER ASSETS | 28,441 | 52,560 | ||
TOTAL ASSETS | 3,163,571 | 2,849,892 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 21,629 | 19,407 | ||
Current maturities of long-term debt | 0 | |||
Accrued taxes | 7,041 | 3,695 | ||
Accrued payroll and benefits | 3,109 | 3,443 | ||
Accrued interest | 259 | 2,440 | ||
Other current liabilities | 22,855 | 20,841 | ||
Total current liabilities | 54,893 | 49,826 | ||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 78,774 | 226,879 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | (684) | (685) | ||
OTHER NON-CURRENT LIABILITIES | 12,218 | 13,136 | ||
INTERCOMPANY PAYABLE | 286,675 | 274,675 | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 2,644,299 | 2,212,405 | ||
Noncontrolling interest | 87,396 | 73,656 | ||
TOTAL SHAREHOLDERS’ EQUITY | 2,731,695 | 2,286,061 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 3,163,571 | $ 2,849,892 |
CONSOLIDATING FINANCIAL STATEMENTS (Condensed Consolidating Statements of Cash Flows) (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Statement of Cash Flows [Abstract] | ||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | $ 163,908 | $ 143,403 |
INVESTING ACTIVITIES | ||
Capital expenditures | (40,246) | (37,211) |
Real estate development costs | (4,815) | (2,029) |
Purchase of timberlands | (353,828) | (88,466) |
Assets purchased in business acquisition | 1,113 | 0 |
Net proceeds from large disposition | 126,965 | 0 |
Rayonier office building under construction | (3,933) | (369) |
Change in restricted cash | 22,430 | (17,835) |
Investment in Subsidiaries | 0 | 0 |
Other | 444 | 3,039 |
CASH USED FOR INVESTING ACTIVITIES | (254,096) | (142,871) |
FINANCING ACTIVITIES | ||
Issuance of debt | 694,096 | 379,027 |
Repayment of debt | (454,419) | (300,871) |
Dividends paid | (92,095) | (94,280) |
Proceeds from the issuance of common shares | 889 | 1,322 |
Repurchase of common shares | (690) | (73,621) |
Debt issuance costs | (818) | (1,678) |
Issuance of intercompany notes | 0 | |
Intercompany distributions | 0 | 0 |
Other | (139) | 0 |
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 146,824 | (90,101) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 1,626 | (6,234) |
CASH AND CASH EQUIVALENTS | ||
Change in cash and cash equivalents | 58,262 | (95,803) |
Balance, beginning of year | 51,777 | 161,558 |
Balance, end of period | 110,039 | 65,755 |
Consolidating Adjustments | ||
Statement of Cash Flows [Abstract] | ||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | 0 | (91,228) |
INVESTING ACTIVITIES | ||
Capital expenditures | 0 | 0 |
Real estate development costs | 0 | 0 |
Purchase of timberlands | 0 | 0 |
Assets purchased in business acquisition | 0 | |
Net proceeds from large disposition | 0 | |
Rayonier office building under construction | 0 | 0 |
Change in restricted cash | 0 | 0 |
Investment in Subsidiaries | 285,937 | 75,946 |
Other | 0 | 0 |
CASH USED FOR INVESTING ACTIVITIES | 285,937 | 75,946 |
FINANCING ACTIVITIES | ||
Issuance of debt | 0 | 0 |
Repayment of debt | 0 | 0 |
Dividends paid | 0 | 0 |
Proceeds from the issuance of common shares | 0 | 0 |
Repurchase of common shares | 0 | 0 |
Debt issuance costs | 0 | 0 |
Issuance of intercompany notes | 0 | |
Intercompany distributions | (285,937) | 15,282 |
Other | 0 | |
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | (285,937) | 15,282 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 0 | 0 |
CASH AND CASH EQUIVALENTS | ||
Change in cash and cash equivalents | 0 | 0 |
Balance, beginning of year | 0 | 0 |
Balance, end of period | 0 | 0 |
Rayonier Inc. (Parent Issuer) | ||
Statement of Cash Flows [Abstract] | ||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | (578) | 77,316 |
INVESTING ACTIVITIES | ||
Capital expenditures | 0 | 0 |
Real estate development costs | 0 | 0 |
Purchase of timberlands | 0 | 0 |
Assets purchased in business acquisition | 0 | |
Net proceeds from large disposition | 0 | |
Rayonier office building under construction | 0 | 0 |
Change in restricted cash | 0 | 0 |
Investment in Subsidiaries | 0 | 0 |
Other | 0 | 0 |
CASH USED FOR INVESTING ACTIVITIES | 0 | 0 |
FINANCING ACTIVITIES | ||
Issuance of debt | 0 | 0 |
Repayment of debt | 0 | 0 |
Dividends paid | (92,095) | (94,280) |
Proceeds from the issuance of common shares | 889 | 1,322 |
Repurchase of common shares | (690) | (73,621) |
Debt issuance costs | 0 | 0 |
Issuance of intercompany notes | (12,000) | |
Intercompany distributions | 162,107 | 0 |
Other | (139) | |
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 58,072 | (166,579) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 0 | 0 |
CASH AND CASH EQUIVALENTS | ||
Change in cash and cash equivalents | 57,494 | (89,263) |
Balance, beginning of year | 2,472 | 102,218 |
Balance, end of period | 59,966 | 12,955 |
Subsidiary Guarantors | ||
Statement of Cash Flows [Abstract] | ||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | 26,589 | 92,414 |
INVESTING ACTIVITIES | ||
Capital expenditures | 0 | (78) |
Real estate development costs | 0 | 0 |
Purchase of timberlands | 0 | 0 |
Assets purchased in business acquisition | 0 | |
Net proceeds from large disposition | 0 | |
Rayonier office building under construction | 0 | 0 |
Change in restricted cash | 0 | 0 |
Investment in Subsidiaries | (285,937) | (75,946) |
Other | 0 | 0 |
CASH USED FOR INVESTING ACTIVITIES | (285,937) | (76,024) |
FINANCING ACTIVITIES | ||
Issuance of debt | 548,000 | 374,000 |
Repayment of debt | (140,000) | (294,472) |
Dividends paid | 0 | 0 |
Proceeds from the issuance of common shares | 0 | 0 |
Repurchase of common shares | 0 | 0 |
Debt issuance costs | (818) | (1,678) |
Issuance of intercompany notes | 0 | |
Intercompany distributions | (155,731) | (91,585) |
Other | 0 | |
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 251,451 | (13,735) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 0 | 0 |
CASH AND CASH EQUIVALENTS | ||
Change in cash and cash equivalents | (7,897) | 2,655 |
Balance, beginning of year | 13,217 | 8,105 |
Balance, end of period | 5,320 | 10,760 |
Non- guarantors | ||
Statement of Cash Flows [Abstract] | ||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | 137,897 | 64,901 |
INVESTING ACTIVITIES | ||
Capital expenditures | (40,246) | (37,133) |
Real estate development costs | (4,815) | (2,029) |
Purchase of timberlands | (353,828) | (88,466) |
Assets purchased in business acquisition | 1,113 | |
Net proceeds from large disposition | 126,965 | |
Rayonier office building under construction | (3,933) | (369) |
Change in restricted cash | 22,430 | (17,835) |
Investment in Subsidiaries | 0 | 0 |
Other | 444 | 3,039 |
CASH USED FOR INVESTING ACTIVITIES | (254,096) | (142,793) |
FINANCING ACTIVITIES | ||
Issuance of debt | 146,096 | 5,027 |
Repayment of debt | (314,419) | (6,399) |
Dividends paid | 0 | 0 |
Proceeds from the issuance of common shares | 0 | 0 |
Repurchase of common shares | 0 | 0 |
Debt issuance costs | 0 | 0 |
Issuance of intercompany notes | 12,000 | |
Intercompany distributions | 279,561 | 76,303 |
Other | 0 | |
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 123,238 | 74,931 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 1,626 | (6,234) |
CASH AND CASH EQUIVALENTS | ||
Change in cash and cash equivalents | 8,665 | (9,195) |
Balance, beginning of year | 36,088 | 51,235 |
Balance, end of period | $ 44,753 | $ 42,040 |
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