XML 26 R15.htm IDEA: XBRL DOCUMENT v3.10.0.1
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS
 6 Months Ended
Jun. 30, 2018
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 investments from December 31, 2017 to June 30, 2018 is shown below:
 
Higher and Better Use Timberlands and Real Estate Development Investments
 
Land and Timber
 
Development Investments
 
Total
Non-current portion at December 31, 2017

$59,653

 

$21,144

 

$80,797

Plus: Current portion (a)
6,702

 
11,648

 
18,350

Total Balance at December 31, 2017
66,355

 
32,792

 
99,147

Non-cash cost of land and improved development
(1,034
)
 
(1,853
)
 
(2,887
)
Timber depletion from harvesting activities and basis of timber sold in real estate sales
(929
)
 
—

 
(929
)
Capitalized real estate development investments (b)
—

 
4,500

 
4,500

Capital expenditures (silviculture)
47

 
—

 
47

Intersegment transfers
1,325

 
—

 
1,325

Total Balance at June 30, 2018
65,764

 
35,439

 
101,203

Less: Current portion (a)
(4,241
)
 
(10,007
)
 
(14,248
)
Non-current portion at June 30, 2018

$61,523

 

$25,432

 

$86,955

 
 
 
 
 
(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 include $0.3 million of capitalized interest.