Earnings Per Common Share

12 Months Ended

Dec. 31, 2016

EARNINGS PER COMMON SHARE

Basic earnings per share (“EPS”) is calculated by dividing net income attributable to Rayonier by the weighted average number of common shares outstanding during the year. Diluted EPS is calculated by dividing net income attributable to Rayonier by the weighted average number of common shares outstanding adjusted to include the potentially dilutive effect of outstanding stock options, performance shares, restricted shares and convertible debt.

The following table provides details of the calculation of basic and diluted EPS for the three years ended December 31:



	2016		2015			2014
Income from continuing operations		$217,770		$43,941			$54,443
Less: Net income (loss) from continuing operations attributable to noncontrolling interest	5,798		(2,224		)	(1,491		)
Income from continuing operations attributable to Rayonier Inc.		$211,972		$46,165			$55,934

Income from discontinued operations attributable to Rayonier Inc.	—		—				$43,403

Net income attributable to Rayonier Inc.		$211,972		$46,165			$99,337

Shares used for determining basic earnings per common share	122,585,200		125,385,085			126,458,710
Dilutive effect of:
Stock options	92,473		116,792			323,125
Performance and restricted shares	134,650		39,863			149,292
Assumed conversion of Senior Exchangeable Notes (a)	—		358,449			2,149,982
Assumed conversion of warrants (a)	—		—			1,957,154
Shares used for determining diluted earnings per common share	122,812,323		125,900,189			131,038,263
Basic earnings per common share attributable to Rayonier Inc.:
Continuing operations		$1.73		$0.37			$0.44
Discontinued operations	—		—			0.34
Net income		$1.73		$0.37			$0.78
Diluted earnings per common share attributable to Rayonier Inc.:
Continuing operations		$1.73		$0.37			$0.43
Discontinued operations	—		—			0.33
Net income		$1.73		$0.37			$0.76



	2016	2015	2014
Anti-dilutive shares excluded from the computations of diluted earnings per share:
Stock options, performance and restricted shares	829,469	897,800	461,663
Assumed conversion of exchangeable note hedges (a)	—	358,449	2,149,982
Total	829,469	1,256,249	2,611,645

(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 exceeds 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 portion of the periods presented in which the notes were outstanding.

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 year ended 2016 as the average stock price for the period the warrants were outstanding did not exceed the strike price.