| Earnings Per Common Share |
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. |