EARNINGS PER COMMON SHARE

9 Months Ended

Sep. 30, 2016

EARNINGS PER COMMON SHARE

The following table provides details of the calculations of basic and diluted 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

(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.