Segment and Geographical Information

12 Months Ended

Dec. 31, 2018

SEGMENT AND GEOGRAPHICAL INFORMATION

Rayonier operates in five reportable segments: Southern Timber, Pacific Northwest Timber, New Zealand Timber, Real Estate and Trading. See Item 1 — Business for a discussion of each of the Company’s reportable segments.

See Note 1 — Summary of Significant Accounting Policies for a discussion of the current year reclassification of New Zealand land sales from the New Zealand Timber segment to the Real Estate segment.

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 is equal to segment income. Certain income (loss) items in the Consolidated Statements of Income and Comprehensive Income are not allocated to segments. These items, which include interest income (expense), miscellaneous income (expense) and income tax expense, are not considered by management to be part of segment operations and are included under “Corporate and other.”

Segment information for each of the three years ended December 31, 2018 follows:



	Sales by Product Line
	2018			2017		2016
Southern Timber		$169,995			$144,510		$151,192
Pacific Northwest Timber	109,832			91,877		77,802
New Zealand Timber	249,014			223,299		176,041
Real Estate
Improved Development	8,393			6,348		1,740
Unimproved Development	8,621			16,405		5,540
Rural	22,689			18,632		18,672
Non-Strategic / Timberlands	98,872			70,590		67,981
Large Dispositions	—			95,351		207,265
Total Real Estate	138,575			207,326		301,198
Trading	148,814			152,584		109,682
Intersegment eliminations	(92		)	—		—
Total Sales		$816,138			$819,596		$815,915



	Operating Income/(Loss)
	2018			2017			2016
Southern Timber		$44,245			$42,254			$43,098
Pacific Northwest Timber	8,137			1,127			(3,992		)
New Zealand Timber	62,754			57,567			33,049
Real Estate (a)	76,240			130,856			202,402
Trading	953			4,578			2,002
Corporate and other	(22,261		)	(20,891		)	(20,782		)
Total Operating Income	170,068			215,491			255,777
Unallocated interest expense and other	(27,502		)	(32,231		)	(32,943		)
Total Income before Income Taxes		$142,566			$183,260			$222,834


(a)	The years 2017 and 2016 include Large Dispositions of $67.0 million and $143.9 million, respectively.



	Gross Capital Expenditures
	2018		2017		2016
Capital Expenditures (a)
Southern Timber		$35,388		$34,476		$33,487
Pacific Northwest Timber	9,311		10,254		8,036
New Zealand Timber	17,318		17,046		16,095
Real Estate	284		1,348		315
Corporate and other	24		2,221		790
Total capital expenditures		$62,325		$65,345		$58,723

Timberland Acquisitions
Southern Timber		$45,943		$220,051		$103,947
Pacific Northwest Timber	—		1,483		262,534
New Zealand Timber	11,665		21,376		—
Total timberland acquisitions		$57,608		$242,910		$366,481

Total Gross Capital Expenditures		$119,933		$308,255		$425,204


(a)	Excludes timberland acquisitions presented separately in addition to spending on the Rayonier office building of $6.1 million and $6.3 million in the years 2017 and 2016, respectively, and real estate development investments of $9.5 million, $15.8 million and $8.7 million in the years 2018, 2017 and 2016, respectively.



	Depreciation, Depletion and Amortization
	2018		2017		2016
Southern Timber		$58,609		$49,357		$49,747
Pacific Northwest Timber	32,779		32,008		25,246
New Zealand Timber	28,007		27,499		23,447
Real Estate (a)	23,566		36,343		52,304
Corporate and other	1,160		794		402
Total		$144,121		$146,001		$151,146

The years 2017 and 2016 include Large Dispositions of $18.4 million and $36.1 million, respectively.



	Non-Cash Cost of Land and Improved Development
	2018	2017	2016
Real Estate (a)	23,553	23,498	33,862

(a) The years 2017 and 2016 include Large Dispositions of $9.8 million and $22.2 million, respectively.



	Geographical Operating Information
	Sales						Operating Income						Identifiable Assets
	2018		2017		2016		2018		2017		2016		2018		2017
United States		$390,396		$419,402		$528,345		$83,357		$138,528		$220,703		$2,282,480		$2,331,230
New Zealand	425,742		400,194		287,570		86,711		76,963		35,074		498,186		527,251
Total		$816,138		$819,596		$815,915		$170,068		$215,491		$255,777		$2,780,666		$2,858,481