10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2019

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission File Number 1-6780

RAYONIER INC.

(Exact name of registrant as specified in its charter)

Incorporated in the State of North Carolina

I.R.S. Employer Identification No. 13-2607329

1 RAYONIER WAY

WILDLIGHT, FL 32097

(Principal Executive Office)

Telephone Number: (904) 357-9100

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of each class	Trading Symbol	Exchange
COMMON SHARES, NO PAR VALUE	RYN	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒        No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes ☒       No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer	☒	Accelerated Filer	☐
Non-accelerated Filer	☐	Smaller Reporting Company	☐	Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ☐        No  ☒

As of August 2, 2019, there were outstanding 129,630,052 Common Shares of the registrant.

TABLE OF CONTENTS

Item		Page
	PART I - FINANCIAL INFORMATION
1.	Financial Statements (unaudited)	1
	Consolidated Statements of Income and Comprehensive Income for the Three and Six Months Ended June 30, 2019 and 2018	1
	Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018	2
	Consolidated Statements of Changes in Shareholders’ Equity for the Three and Six Months ended June 30, 2019 and 2018	3
	Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2019 and 2018	5
	Notes to Consolidated Financial Statements	6
2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	35
3.	Quantitative and Qualitative Disclosures about Market Risk	56
4.	Controls and Procedures	57
	PART II - OTHER INFORMATION
1.	Legal Proceedings	58
2.	Unregistered Sales of Equity Securities and Use of Proceeds	58
6.	Exhibits	59
	Signature	60

i

PART I.        FINANCIAL INFORMATION

Item 1.         Financial Statements

RAYONIER INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

AND COMPREHENSIVE INCOME

(Unaudited)

(Dollars in thousands, except per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
SALES (NOTE 2)		$184,800			$245,906			$376,346			$449,101
Costs and Expenses
Cost of sales	(140,454		)	(184,418		)	(283,705		)	(322,906		)
Selling and general expenses	(10,984		)	(11,502		)	(20,794		)	(20,504		)
Other operating (expense) income, net (Note 16)	(1,969		)	1,659			(1,934		)	3,029
	(153,407		)	(194,261		)	(306,433		)	(340,381		)
OPERATING INCOME	31,393			51,645			69,913			108,720
Interest expense	(7,922		)	(8,102		)	(15,632		)	(16,155		)
Interest and other miscellaneous income, net	1,057			2,905			2,390			3,525
INCOME BEFORE INCOME TAXES	24,528			46,448			56,671			96,090
Income tax expense (Note 9)	(3,608		)	(7,110		)	(7,958		)	(14,047		)
NET INCOME	20,920			39,338			48,713			82,043
Less: Net income attributable to noncontrolling interest	(2,168		)	(3,080		)	(5,167		)	(5,246		)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	18,752			36,258			43,546			76,797
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment, net of income tax expense of $0, $0, $0 and $0	(5,604		)	(29,760		)	429			(20,072		)
Cash flow hedges, net of income tax (benefit) expense of ($91), ($2,008), $244 and ($1,640)	(19,519		)	529			(30,205		)	17,143
Amortization of pension and postretirement plans, net of income tax expense of $0, $0, $0 and $0	112			178			224			338
Total other comprehensive (loss) income	(25,011		)	(29,053		)	(29,552		)	(2,591		)
COMPREHENSIVE (LOSS) INCOME	(4,091		)	10,285			19,161			79,452
Less: Comprehensive (income) loss attributable to noncontrolling interest	(815		)	5,011			(5,366		)	528
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC.		($4,906	)		$15,296			$13,795			$79,980
EARNINGS PER COMMON SHARE (NOTE 12)
Basic earnings per share attributable to Rayonier Inc.		$0.14			$0.28			$0.34			$0.60
Diluted earnings per share attributable to Rayonier Inc.		$0.14			$0.28			$0.34			$0.59

See Notes to Consolidated Financial Statements.

1

RAYONIER INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands)

	June 30, 2019			December 31, 2018
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$130,956			$148,374
Accounts receivable, less allowance for doubtful accounts of $8 and $8	44,931			26,151
Inventory (Note 17)	23,597			15,703
Prepaid expenses	20,581			17,016
Other current assets	690			609
Total current assets	220,755			207,853
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	2,392,389			2,401,327
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT      INVESTMENTS (NOTE 7)	77,072			85,609
PROPERTY, PLANT AND EQUIPMENT
Land	4,131			4,131
Buildings	22,432			22,503
Machinery and equipment	3,681			3,534
Construction in progress	589			567
Total property, plant and equipment, gross	30,833			30,735
Less — accumulated depreciation	(8,789		)	(7,984		)
Total property, plant and equipment, net	22,044			22,751
RESTRICTED CASH (NOTE 18)	3,754			8,080
RIGHT-OF-USE ASSETS (NOTE 3)	104,016			—
OTHER ASSETS	41,021			55,046
TOTAL ASSETS		$2,861,051			$2,780,666
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable		$24,944			$18,019
Accrued taxes	5,935			3,178
Accrued payroll and benefits	5,451			10,416
Accrued interest	4,931			5,007
Deferred revenue	19,798			10,447
Other current liabilities	25,026			16,474
Total current liabilities	86,085			63,541
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS (NOTE 6)	972,848			972,567
PENSION AND OTHER POSTRETIREMENT BENEFITS (NOTE 15)	29,383			29,800
LONG-TERM LEASE LIABILITY (NOTE 3)	93,749			—
OTHER NON-CURRENT LIABILITIES	78,688			60,208
COMMITMENTS AND CONTINGENCIES (NOTES 8 and 10)
SHAREHOLDERS’ EQUITY
Common Shares, 480,000,000 shares authorized,129,629,716 and 129,488,675 shares issued and outstanding	884,618			884,263
Retained earnings	645,743			672,371
Accumulated other comprehensive (loss) income (Note 19)	(29,511		)	239
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,500,850			1,556,873
Noncontrolling interest	99,448			97,677
TOTAL SHAREHOLDERS’ EQUITY	1,600,298			1,654,550
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$2,861,051			$2,780,666

See Notes to Consolidated Financial Statements.

2

RAYONIER INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(Unaudited)

(Dollars in thousands, except share data)

	Common Shares					Retained Earnings			Accumulated Other Comprehensive (Loss) Income			Non-controlling Interest			Shareholders’ Equity
	Shares		Amount
Balance, January 1, 2019	129,488,675			$884,263			$672,371			$239			$97,677			$1,654,550
Net income	—		—			24,794			—			2,999			27,793
Dividends ($0.27 per share)	—		—			(35,049		)	—			—			(35,049		)
Issuance of shares under incentive stock plans	26,031		597			—			—			—			597
Stock-based compensation	—		1,477			—			—			—			1,477
Repurchase of common shares	(1,140	)	(33		)	—			—			—			(33		)
Amortization of pension and postretirement plan liabilities	—		—			—			112			—			112
Foreign currency translation adjustment	—		—			—			4,680			1,353			6,033
Cash flow hedges	—		—			—			(10,884		)	198			(10,686		)
Distribution to minority shareholder	—		—			—			—			(3,594		)	(3,594		)
Balance, March 31, 2019	129,513,566			$886,304			$662,116			($5,853	)		$98,633			$1,641,200
Net income	—		—			18,752			—			2,168			20,920
Dividends ($0.27 per share)	—		—			(35,125		)	—			—			(35,125		)
Issuance of shares under incentive stock plans	250,344		177			—			—			—			177
Stock-based compensation	—		2,344			—			—			—			2,344
Repurchase of common shares	(134,194	)	(4,207		)	—			—			—			(4,207		)
Amortization of pension and postretirement plan liabilities	—		—			—			112			—			112
Foreign currency translation adjustment	—		—			—			(4,305		)	(1,299		)	(5,604		)
Cash flow hedges	—		—			—			(19,465		)	(54		)	(19,519		)
Balance, June 30, 2019	129,629,716			$884,618			$645,743			($29,511	)		$99,448			$1,600,298

3

	Common Shares					Retained Earnings			Accumulated Other Comprehensive Income			Non-controlling Interest			Shareholders’ Equity
	Shares		Amount
Balance, January 1, 2018	128,970,776			$872,228			$707,378			$13,417			$99,917			$1,692,940
Net income	—		—			40,539			—			2,167			42,706
Dividends ($0.25 per share)	—		—			(32,634		)	—			—			(32,634		)
Issuance of shares under incentive stock plans	204,336		5,455			—			—			—			5,455
Stock-based compensation	—		1,262			—			—			—			1,262
Repurchase of common shares	(811	)	(18		)	—			—			—			(18		)
Amortization of pension and postretirement plan liabilities	—		—			—			159			—			159
Foreign currency translation adjustment	—		—			—			7,606			2,082			9,688
Cash flow hedges	—		—			—			16,381			234			16,615
Balance, March 31, 2018	129,174,301			$878,927			$715,283			$37,563			$104,400			$1,736,173
Net income	—		—			36,258			—			3,080			39,338
Dividends ($0.27 per share)	—		—			(35,213		)	—			—			(35,213		)
Issuance of shares under incentive stock plans	357,139		2,369			—			—			—			2,369
Stock-based compensation	—		2,212			—			—			—			2,212
Repurchase of common shares	(80,172	)	(2,948		)	—			—			—			(2,948		)
Amortization of pension and postretirement plan liabilities	—		—			—			178			—			178
Foreign currency translation adjustment	—		—			—			(22,857		)	(6,903		)	(29,760		)
Cash flow hedges	—		—			—			1,717			(1,189		)	529
Balance, June 30, 2018	129,451,268			$880,560			$716,328			$16,601			$99,388			$1,712,877

See Notes to Consolidated Financial Statements.

4

RAYONIER INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Dollars in thousands)

	Six Months Ended June 30,
	2019			2018
OPERATING ACTIVITIES
Net income		$48,713			$82,043
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, depletion and amortization	64,093			80,920
Non-cash cost of land and improved development	5,647			14,936
Stock-based incentive compensation expense	3,821			3,474
Deferred income taxes	7,257			13,653
Amortization of losses from pension and postretirement plans	224			338
Other	987			(5,466		)
Changes in operating assets and liabilities:
Receivables	(21,031		)	(26,203		)
Inventories	(994		)	1,014
Accounts payable	5,558			4,448
Income tax receivable/payable	—			(84		)
All other operating activities	2,679			12,510
CASH PROVIDED BY OPERATING ACTIVITIES	116,954			181,583
INVESTING ACTIVITIES
Capital expenditures	(29,505		)	(25,920		)
Real estate development investments	(999		)	(4,501		)
Purchase of timberlands	(26,396		)	(31,234		)
Other	(3,888		)	113
CASH USED FOR INVESTING ACTIVITIES	(60,788		)	(61,542		)
FINANCING ACTIVITIES
Issuance of debt	—			1,014
Repayment of debt	—			(54,389		)
Dividends paid	(71,107		)	(67,053		)
Proceeds from the issuance of common shares under incentive stock plan	774			7,824
Repurchase of common shares	(4,241		)	(2,966		)
Distribution to minority shareholder	(3,594		)	—
Other	133			—
CASH USED FOR FINANCING ACTIVITIES	(78,035		)	(115,570		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	125			(578		)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Change in cash, cash equivalents and restricted cash	(21,744		)	3,893
Balance, beginning of year	156,454			172,356
Balance, end of period		$134,710			$176,249
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period:
Interest (a)		$14,377			$14,858
Income taxes	705			302
Non-cash investing activity:
Capital assets purchased on account	3,407			6,646

(a) Interest paid is presented net of patronage payments received of $4.0 million and $3.8 million for the six months ended June 30, 2019 and June 30, 2018, respectively. For additional information on patronage payments, see Note 5 — Debt in the 2018 Form 10-K.

See Notes to Consolidated Financial Statements.

5

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

1. BASIS OF PRESENTATION

The unaudited consolidated financial statements and notes thereto of Rayonier Inc. and its subsidiaries (“Rayonier” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). The year-end balance sheet information was derived from audited financial statements not included herein. In the opinion of management, these financial statements and notes reflect any adjustments (all of which are normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. These statements and notes should be read in conjunction with the financial statements and supplementary data included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, as filed with the SEC (the “2018 Form 10-K”).

SUMMARY OF UPDATES TO SIGNIFICANT ACCOUNTING POLICIES

For information on updated significant accounting policies due to the adoption of ASC 842, see Note 3 — Leases. For a full description of our other significant accounting policies, see Note 1 — Basis of Presentation in the 2018 Form 10-K.

RECENTLY ADOPTED STANDARDS

ASU 2016-02 (ASC 842)

The Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), on January 1, 2019 and elected to apply the standard as of that day. As such, the Consolidated Balance Sheet as of June 30, 2019 includes right-of-use assets and lease liabilities related to the rights and obligations created by the Company’s long-term leases. Prior periods have not been restated.

The Company applied the following practical expedients in the transition to the new standard as allowed under ASC 842-10-65-1:

Practical Expedient	Description
Reassessment of expired or existing contracts	The Company elected not to reassess, at the application date, whether any expired or existing contracts contained leases, the lease classification for any expired or existing leases, and the accounting for initial direct costs for any existing leases.
Use of hindsight	The Company elected to use hindsight in determining the lease term (that is, when considering options to extend or terminate the lease and to purchase the underlying asset) and in assessing impairment of right-to-use assets.
Reassessment of existing or expired land easements	The Company elected not to evaluate existing or expired land easements that were not previously accounted for as leases under ASC 840, as allowed under the transition practical expedient. Going forward, new or modified land easements will be evaluated under ASU No. 2016-02.

See Note 3 — Leases for additional qualitative and quantitative disclosures required under ASU No. 2016-02.

OTHER RECENTLY ADOPTED STANDARDS

The Company adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities in the first quarter ended March 31, 2019 with no material impact on the consolidated financial statements.

The Company adopted ASU No 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting in the first quarter ended March 31, 2019 with no impact on the consolidated financial statements.

6

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

NEW ACCOUNTING STANDARDS

During the six months ended June 30, 2019, the Financial Accounting Standards Board (“FASB”) has not issued any Accounting Standard Updates which are expected to have a material retrospective or future effect on the consolidated financial statements.

SUBSEQUENT EVENTS

The Company has evaluated events occurring from June 30, 2019 to the date of issuance of these Consolidated Financial Statements for potential recognition or disclosure in the consolidated financial statements. No events were identified that warranted recognition or disclosure.

2.    REVENUE

PERFORMANCE OBLIGATIONS

The Company recognizes revenues when control of promised goods or services (“performance obligations”) is transferred to customers, in an amount that reflects the consideration expected in exchange for those goods or services (“transaction price”). The Company generally satisfies performance obligations within a year of entering into a contract and therefore has applied the disclosure exemption found under ASC 606-10-50-14. Unsatisfied performance obligations as of June 30, 2019 are primarily due to advances on stumpage contracts and unearned license revenue. These performance obligations are expected to be satisfied within the next twelve months. The Company generally collects payment within a year of satisfying performance obligations and therefore has elected not to adjust revenues for a financing component. 

CONTRACT BALANCES

The timing of revenue recognition, invoicing and cash collections results in accounts receivable and deferred revenue (contract liabilities) on the Consolidated Balance Sheets. Accounts receivable are recorded when the Company has an unconditional right to consideration for completed performance under the contract. Contract liabilities relate to payments received in advance of performance under the contract. Contract liabilities are recognized as revenue as (or when) the Company performs under the contract.

The following table summarizes revenue recognized during the three and six months ended June 30, 2019 and 2018 that was included in the contract liability balance at the beginning of each year:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Revenue recognized from contract liability balance at the beginning of the year (a)		$3,440		$5,429		$8,796		$11,800

(a) Revenue recognized was primarily from hunting licenses and the use of advances on pay-as-cut timber sales.

7

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

The following tables present our revenue from contracts with customers disaggregated by product type for the three and six months ended June 30, 2019 and 2018:

Three Months Ended	Southern Timber		Pacific Northwest Timber		New Zealand Timber		Real Estate		Trading		Elim.			Total
June 30, 2019
Pulpwood		$19,310		$2,267		$8,581	—			$3,826	—				$33,984
Sawtimber	16,286		15,407		52,427		—		31,377		—			115,497
Hardwood	1,391		—		—		—		—		—			1,391
Total Timber Sales	36,987		17,674		61,008		—		35,203		—			150,872
License Revenue, Primarily From Hunting	4,296		103		142		—		—		—			4,541
Other Non-Timber/Carbon Revenue	4,914		779		977		—		—		—			6,670
Agency Fee Income	—		—		—		—		184		—			184
Total Non-Timber Sales	9,210		882		1,119		—		184		—			11,395
Improved Development	—		—		—		172		—		—			172
Unimproved Development	—		—		—		14,431		—		—			14,431
Rural	—		—		—		6,799		—		—			6,799
Non-strategic / Timberlands	—		—		—		1,123		—		—			1,123
Other	—		—		—		8		—		—			8
Total Real Estate Sales	—		—		—		22,533		—		—			22,533
Revenue from Contracts with Customers	46,197		18,556		62,127		22,533		35,387		—			184,800
Intersegment	—		—		—		—		74		(74		)	—
Total Revenue		$46,197		$18,556		$62,127		$22,533		$35,461		($74	)		$184,800
June 30, 2018
Pulpwood		$20,300		$4,625		$7,788	—			$3,804	—				$36,517
Sawtimber	15,776		26,654		61,219		—		42,162		—			145,811
Hardwood	1,214		—		—		—		—		—			1,214
Total Timber Sales	37,290		31,279		69,007		—		45,966		—			183,542
License Revenue, Primarily from Hunting	3,936		103		142		—		—		—			4,181
Other Non-Timber/Carbon Revenue	6,821		831		504		—		—		—			8,156
Agency Fee Income	—		—		—		—		167		—			167
Total Non-Timber Sales	10,757		934		646		—		167		—			12,504
Improved Development	—		—		—		1,345		—		—			1,345
Rural	—		—		—		4,827		—		—			4,827
Non-strategic / Timberlands	—		—		—		43,688		—		—			43,688
Total Real Estate Sales	—		—		—		49,860		—		—			49,860
Revenue from Contracts with Customers	48,047		32,213		69,653		49,860		46,133		—			245,906
Intersegment	—		—		—		—		29		(29		)	—
Total Revenue		$48,047		$32,213		$69,653		$49,860		$46,162		($29	)		$245,906

8

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

Six Months Ended	Southern Timber		Pacific Northwest Timber		New Zealand Timber		Real Estate		Trading		Elim.			Total
June 30, 2019
Pulpwood		$46,109		$5,087		$17,349	—			$8,152	—				$76,697
Sawtimber	39,437		32,684		98,290		—		58,890		—			229,301
Hardwood	2,477		—		—		—		—		—			2,477
Total Timber Sales	88,023		37,771		115,639		—		67,042		—			308,475
License Revenue, Primarily From Hunting	8,420		205		195		—		—		—			8,820
Other Non-Timber/Carbon Revenue	10,600		1,115		3,423		—		—		—			15,138
Agency Fee Income	—		—		—		—		381		—			381
Total Non-Timber Sales	19,020		1,320		3,618		—		381		—			24,339
Improved Development	—		—		—		514		—		—			514
Unimproved Development	—		—		—		15,430		—		—			15,430
Rural	—		—		—		19,464		—		—			19,464
Non-strategic / Timberlands	—		—		—		8,056		—		—			8,056
Other	—		—		—		68		—		—			68
Total Real Estate Sales	—		—		—		43,532		—		—			43,532
Revenue from Contracts with Customers	107,043		39,091		119,257		43,532		67,423		—			376,346
Intersegment	—		—		—		—		103		(103		)	—
Total Revenue		$107,043		$39,091		$119,257		$43,532		$67,526		($103	)		$376,346
June 30, 2018
Pulpwood		$41,904		$8,044		$13,632	—			$8,062	—				$71,642
Sawtimber	31,713		53,721		105,964		—		76,987		—			268,385
Hardwood	1,811		—		—		—		—		—			1,811
Total Timber Sales	75,428		61,765		119,596		—		85,049		—			341,838
License Revenue, Primarily from Hunting	8,024		128		194		—		—		—			8,346
Other Non-Timber/Carbon Revenue	8,183		1,694		2,827		—		—		—			12,704
Agency Fee Income	—		—		—		—		289		—			289
Total Non-Timber Sales	16,207		1,822		3,021		—		289		—			21,339
Improved Development	—		—		—		2,465		—		—			2,465
Unimproved Development	—		—		—		7,446		—		—			7,446
Rural	—		—		—		6,480		—		—			6,480
Non-strategic / Timberlands	—		—		—		69,533		—		—			69,533
Total Real Estate Sales	—		—		—		85,924		—		—			85,924
Revenue from Contracts with Customers	91,635		63,587		122,617		85,924		85,338		—			449,101
Intersegment	—		—		—		—		35		(35		)	—
Total Revenue		$91,635		$63,587		$122,617		$85,924		$85,373		($35	)		$449,101

9

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

The following tables present our timber sales disaggregated by contract type for the three and six months ended June 30, 2019 and 2018:

Three Months Ended	Southern Timber		Pacific Northwest Timber		New Zealand Timber		Trading		Total
June 30, 2019
Stumpage Pay-as-Cut		$15,172	—		—		—			$15,172
Stumpage Lump Sum	581		—		—		—		581
Total Stumpage	15,753		—		—		—		15,753
Delivered Wood (Domestic)	17,041		17,674		21,739		2,669		59,123
Delivered Wood (Export)	4,193		—		39,269		32,534		75,996
Total Delivered	21,234		17,674		61,008		35,203		135,119
Total Timber Sales		$36,987		$17,674		$61,008		$35,203		$150,872
June 30, 2018
Stumpage Pay-as-Cut		$19,855	—		—		—			$19,855
Stumpage Lump Sum	256		4,605		—		—		4,861
Total Stumpage	20,111		4,605		—		—		24,716
Delivered Wood (Domestic)	15,166		26,674		25,647		1,567		69,054
Delivered Wood (Export)	2,013		—		43,360		44,399		89,772
Total Delivered	17,179		26,674		69,007		45,966		158,826
Total Timber Sales		$37,290		$31,279		$69,007		$45,966		$183,542

Six Months Ended	Southern Timber		Pacific Northwest Timber		New Zealand Timber		Trading		Total
June 30, 2019
Stumpage Pay-as-Cut		$43,180	—		—		—			$43,180
Stumpage Lump Sum	2,675		—		—		—		2,675
Total Stumpage	45,855		—		—		—		45,855
Delivered Wood (Domestic)	36,379		37,771		42,439		4,793		121,382
Delivered Wood (Export)	5,789		—		73,200		62,249		141,238
Total Delivered	42,168		37,771		115,639		67,042		262,620
Total Timber Sales		$88,023		$37,771		$115,639		$67,042		$308,475
June 30, 2018
Stumpage Pay-as-Cut		$42,364	—		—		—			$42,364
Stumpage Lump Sum	2,074		9,711		—		—		11,785
Total Stumpage	44,438		9,711		—		—		54,149
Delivered Wood (Domestic)	28,543		52,054		45,750		2,504		128,851
Delivered Wood (Export)	2,447		—		73,846		82,545		158,838
Total Delivered	30,990		52,054		119,596		85,049		287,689
Total Timber Sales		$75,428		$61,765		$119,596		$85,049		$341,838

10

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

3.    LEASES

ADOPTION OF ASC 842

For information on the adoption of ASC 842, including required transition disclosures, see Note 1 — Basis of Presentation.

TIMBERLAND LEASES

U.S. timberland leases typically have initial terms of approximately 30 to 65 years, with renewal provisions in some cases. New Zealand timberland lease terms typically range between 30 and 99 years. New Zealand lease arrangements generally consist of Crown Forest Licenses (“CFLs”), forestry rights and land leases. A CFL is a license arrangement to use government or privately owned land to operate a commercial forest. CFLs generally extend indefinitely and may only be terminated upon a 35-year termination notice. If no termination notice is given, the CFLs renew automatically each year for a one-year term. Alternatively, some CFLs extend for a specific term. Once a CFL is terminated, the Company may be able to obtain a forestry right from the subsequent owner. A forestry right is a license arrangement with a private entity to use their lands to operate a commercial forest. Forestry rights terminate either upon the issuance of a termination notice (which can last 35 to 45 years), completion of harvest, or a specified termination date.

As of June 30, 2019, the New Zealand subsidiary has two CFLs comprising 9,000 acres under termination notice that are currently being relinquished as harvest activities are concluding, as well as two fixed-term CFLs comprising 3,000 acres expiring in 2062. Additionally, the New Zealand subsidiary has two forestry rights comprising 32,000 acres under termination notice that are currently being relinquished as harvest activities are concluding.

OTHER NON-TIMBERLAND LEASES

In addition to timberland holdings, the Company leases properties for certain office locations. Significant leased properties include a regional office in Lufkin, Texas; a Pacific Northwest Timber office in Hoquiam, Washington and a New Zealand Timber and Trading headquarters in Auckland, New Zealand.

LEASE MATURITIES, LEASE COST AND OTHER LEASE INFORMATION

The following table details the Company’s undiscounted lease obligations as of June 30, 2019 by type of lease and year of expiration:

				Year of Expiration
Lease obligations	Total			Remaining 2019		2020		2021		2022		2023		Thereafter
Operating lease liabilities		$202,266			$5,874		$9,642		$9,494		$8,858		$8,318		$160,080
Total Undiscounted Cash Flows		$202,266			$5,874		$9,642		$9,494		$8,858		$8,318		$160,080
Imputed interest	(98,212		)
Balance at June 30, 2019	104,054
Less: Current portion	(10,305		)
Non-current portion at June 30, 2019		$93,749

11

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

The following table details components of the Company’s lease cost for the three and six months ended June 30, 2019:

	Three Months Ended June 30,		Six Months Ended June 30,
Lease Cost Components	2019		2019
Operating lease cost	2,396		4,833
Variable lease cost (a)	81		157
Total lease cost (b)		$2,477		$4,990

(a) The majority of timberland leases are subject to increases or decreases based on either the Consumer Price Index, Producer Price Index or market rates.

(b) Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for these leases are expensed on a straight line basis over the lease term. Short-term lease expense was not material for the three and six months ended June 30,2019. 

The following table details components of the Company’s lease cost for the six months ended June 30, 2019:

	Six Months Ended June 30,
Supplemental cash flow information related to leases:	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	1,493
Investing cash flows from operating leases	3,340
Total cash flows from operating leases		$4,833
Weighted-average remaining lease term in years - operating leases	28
Weighted-average discount rate - operating leases	5		%

The Company applied the following practical expedients upon adoption of the the new standard as allowed under ASC 842:

Practical Expedient	Description
Short-term leases	The Company does not record right-of-use assets or lease liabilities for short-term leases (a lease that at commencement date has a lease term of 12 months or less and does not contain a purchase option that is reasonably certain to be exercised).
Separation of lease and non-lease components	The Company does not separate non-lease components from the associated lease components if they have the same timing and pattern of transfer and, if accounted for separately, would both be classified as an operating lease.

4. NEW ZEALAND SUBSIDIARY

The Company maintains a 77% controlling financial interest in Matariki Forestry Group (the “New Zealand subsidiary”), a joint venture that owns or leases approximately 410,000 legal acres of New Zealand timberland. Accordingly, the Company consolidates the New Zealand subsidiary’s balance sheet and results of operations. The portions of the consolidated financial position and results of operations attributable to the New Zealand subsidiary’s 23% noncontrolling interest are shown separately within the Consolidated Statements of Income and Comprehensive Income and Consolidated Statements of Shareholders’ Equity. Rayonier New Zealand Limited (“RNZ”), a wholly-owned subsidiary of Rayonier Inc., serves as the manager of the New Zealand subsidiary.

12

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

5.    SEGMENT AND GEOGRAPHICAL INFORMATION

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 “unallocated interest expense and other.”

The following tables summarize the segment information for the three and six months ended June 30, 2019 and 2018:

	Three Months Ended June 30,						Six Months Ended June 30,
SALES	2019			2018			2019			2018
Southern Timber		$46,197			$48,047			$107,043			$91,635
Pacific Northwest Timber	18,556			32,213			39,091			63,587
New Zealand Timber	62,127			69,653			119,257			122,617
Real Estate	22,533			49,860			43,532			85,924
Trading	35,461			46,162			67,526			85,373
Intersegment Eliminations	(74		)	(29		)	(103		)	(35		)
Total		$184,800			$245,906			$376,346			$449,101

	Three Months Ended June 30,						Six Months Ended June 30,
OPERATING INCOME (LOSS)	2019			2018			2019			2018
Southern Timber		$14,741			$15,651			$36,261			$27,878
Pacific Northwest Timber	(3,815		)	5,625			(7,556		)	10,299
New Zealand Timber	12,797			17,768			28,517			33,725
Real Estate	15,468			18,864			25,495			46,918
Trading	(171		)	227			309			376
Corporate and other	(7,627		)	(6,490		)	(13,113		)	(10,476		)
Total Operating Income	31,393			51,645			69,913			108,720
Unallocated interest expense and other	(6,865		)	(5,197		)	(13,242		)	(12,630		)
Total Income before Income Taxes		$24,528			$46,448			$56,671			$96,090

	Three Months Ended June 30,				Six Months Ended June 30,
DEPRECIATION, DEPLETION AND AMORTIZATION	2019		2018		2019		2018
Southern Timber		$12,880		$14,940		$32,608		$30,919
Pacific Northwest Timber	6,045		9,381		12,871		18,885
New Zealand Timber	7,189		8,026		13,508		13,743
Real Estate	1,199		13,739		4,534		16,805
Corporate and other	288		297		572		568
Total		$27,601		$46,383		$64,093		$80,920

13

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

	Three Months Ended June 30,				Six Months Ended June 30,
NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT	2019		2018		2019		2018
Real Estate		$1,617		$13,312		$5,647		$14,936
Total		$1,617		$13,312		$5,647		$14,936

6. DEBT

Rayonier’s debt consisted of the following at June 30, 2019:

	June 30, 2019
Term Credit Agreement borrowings due 2024 at a variable interest rate of 4.1% at June 30, 2019 (a)		$350,000
Senior Notes due 2022 at a fixed interest rate of 3.75%	325,000
Incremental Term Loan Agreement borrowings due 2026 at a variable interest rate of 4.3% at June 30, 2019 (b)	300,000
Total debt	975,000
Less: Deferred financing costs	(2,152		)
Long-term debt, net of deferred financing costs		$972,848

(a) As of June 30, 2019, the periodic interest rate on the term loan facility was LIBOR plus 1.625%. The Company estimates the effective fixed interest rate on the term loan facility to be approximately 3.3% after consideration of interest rate swaps and estimated patronage refunds.

(b) As of June 30, 2019, the periodic interest rate on the incremental term loan was LIBOR plus 1.900%. The Company estimates the effective fixed interest rate on the incremental term loan facility to be approximately 2.8% after consideration of interest rate swaps and estimated patronage refunds.

Principal payments due during the next five years and thereafter are as follows:

2019	—
2020	—
2021	—
2022	325,000
2023	—
Thereafter	650,000
Total Debt		$975,000

2019 DEBT ACTIVITY

During the six months ended June 30, 2019, the Company made no borrowings or repayments on its Revolving Credit Facility. At June 30, 2019, the Company had available borrowings of $198.4 million under the Revolving Credit Facility, net of $1.6 million to secure its outstanding letters of credit.

During the six months ended June 30, 2019, the New Zealand subsidiary made no borrowings or repayments on its working capital facility. At June 30, 2019, the New Zealand subsidiary had NZ$20.0 million of available borrowings under its working capital facility.

14

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

DEBT COVENANTS

In connection with the Company’s $350 million term credit agreement (the “Term Credit Agreement”), $300 million incremental term loan agreement (the “Incremental Term Loan Agreement”) and $200 million revolving credit facility (the “Revolving Credit Facility”), customary covenants must be met, the most significant of which include interest coverage and leverage ratios.

In addition to these financial covenants listed above, the Senior Notes, Term Credit Agreement, Incremental Term Loan Agreement and Revolving Credit Facility include customary covenants that limit the incurrence of debt and the disposition of assets, among others. At June 30, 2019, the Company was in compliance with all applicable covenants.

7. 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, 2018 to June 30, 2019 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, 2018		$59,189			$26,420			$85,609
Plus: Current portion (a)	4,239			7,680			11,919
Total Balance at December 31, 2018	63,428			34,100			97,528
Non-cash cost of land and improved development	(1,288		)	(376		)	(1,664		)
Timber depletion from harvesting activities and basis of timber sold in real estate sales	(1,657		)	—			(1,657		)
Capitalized real estate development investments (b)	—			999			999
Capital expenditures (silviculture)	117			—			117
Intersegment transfers	76			—			76
Total Balance at June 30, 2019	60,676			34,723			95,399
Less: Current portion (a)	(3,476		)	(14,851		)	(18,327		)
Non-current portion at June 30, 2019		$57,200			$19,872			$77,072

(a) The current portion of Higher and Better Use Timberlands and Real Estate Development Investments is recorded in Inventory. See Note 17 — Inventory for additional information.

(b) Capitalized real estate development investments include $0.3 million of capitalized interest.

15

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

8.    COMMITMENTS

At June 30, 2019, the future minimum payments under non-cancellable commitments were as follows:

	Development Projects (a)		Pension Contributions (b)		Commitments (c)		Total
Remaining 2019		$1,742		$884		$1,329		$3,955
2020	—		442		619		1,061
2021	—		—		134		134
2022	—		—		3		3
2023	—		—		—		—
Thereafter	—		—		—		—
		$1,742		$1,326		$2,085		$5,153

(a) Consists of payments expected to be made on the Company’s Wildlight development project.

(b) Pension contribution requirements are based on actuarially determined estimates and IRS minimum funding requirements.

(c) Commitments include payments expected to be made on foreign exchange contracts, timberland deeds and other purchase obligations.

9.    INCOME TAXES

The Company’s timber operations are primarily conducted by the Company’s REIT entity, which is generally not subject to U.S. federal and state income tax. The New Zealand timber operations are conducted by the New Zealand subsidiary, which is subject to corporate-level tax in New Zealand. Non-REIT qualifying operations, which are subject to corporate-level tax, are conducted by various TRS entities. These operations include log trading and certain real estate activities, such as the sale, entitlement and development of HBU properties.

PROVISION FOR INCOME TAXES

The Company’s tax expense is principally related to New Zealand corporate-level tax on the New Zealand subsidiary income. The following table contains the income tax expense recognized on the Consolidated Statements of Income and Comprehensive Income.

	Three Months Ended  June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Income tax expense		($3,608	)		($7,110	)		($7,958	)		($14,047	)

ANNUAL EFFECTIVE TAX RATE

The Company’s effective tax rate is below the 21.0% U.S. statutory rate due to tax benefits associated with being a REIT. The following table contains the Company’s annualized effective tax rate.

	Six Months Ended June 30,
	2019		2018
Annualized effective tax rate	15.5	%	14.5	%

16

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

10. CONTINGENCIES

The Company has been named as a defendant in various lawsuits and claims arising in the normal course of business. While the Company has procured reasonable and customary insurance covering risks normally occurring in connection with its businesses, it has in certain cases retained some risk through the operation of large deductible insurance plans, primarily in the areas of executive risk, property, automobile and general liability. These pending lawsuits and claims, either individually or in the aggregate, are not expected to have a material adverse effect on the Company’s financial position, results of operations, or cash flow.

11. GUARANTEES

The Company provides financial guarantees as required by creditors, insurance programs, and various governmental agencies.

As of June 30, 2019, the following financial guarantees were outstanding:

Financial Commitments (a)	Maximum Potential Payment
Standby letters of credit (b)		$1,585
Surety bonds (c)	3,377
Total financial commitments		$4,962

(a) The Company has not recorded any liabilities for these financial commitments in the Consolidated Balance Sheets. The guarantees are not subject to measurement, as the guarantees are dependent on the Company’s own performance.

(b) Approximately $0.6 million of the standby letters of credit serve as credit support for infrastructure at the Company’s Wildlight development project. The remaining letters of credit support various insurance related agreements, primarily workers’ compensation. These letters of credit will expire at various dates during 2019 and 2020 and will be renewed as required.

(c) Rayonier issues surety bonds primarily to secure performance obligations related to various operational activities and to provide collateral for outstanding claims under the Company’s previous workers’ compensation self-insurance programs in Washington and Florida. These surety bonds expire at various dates during 2019 and 2020 and are expected to be renewed as required.

17

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

12.    EARNINGS PER COMMON SHARE

The following table provides details of the calculations of basic and diluted earnings per common share:

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Net Income		$20,920			$39,338			$48,713			$82,043
Less: Net income attributable to noncontrolling interest	(2,168		)	(3,080		)	(5,167		)	(5,246		)
Net income attributable to Rayonier Inc.		$18,752			$36,258			$43,546			$76,797
Shares used for determining basic earnings per common share	129,380,282			129,067,325			129,277,490			128,935,003
Dilutive effect of:
Stock options	13,463			103,154			16,580			90,815
Performance and restricted shares	250,170			540,808			403,915			606,760
Shares used for determining diluted earnings per common share	129,643,915			129,711,287			129,697,985			129,632,578
Basic earnings per common share attributable to Rayonier Inc.:		$0.14			$0.28			$0.34			$0.60
Diluted earnings per common share attributable to Rayonier Inc.:		$0.14			$0.28			$0.34			$0.59

	Three Months Ended June 30,		Six Months Ended June 30,
	2019	2018	2019	2018
Anti-dilutive shares excluded from the computations of diluted earnings per share:
Stock options and performance shares	451,258	254,663	444,765	213,241

18

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

13. DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

The Company is exposed to market risk related to potential fluctuations in foreign currency exchange rates and interest rates. The Company uses derivative financial instruments to mitigate the financial impact of exposure to these risks.

Accounting for derivative financial instruments is governed by ASC Topic 815, Derivatives and Hedging, (“ASC 815”). In accordance with ASC 815, the Company records its derivative instruments at fair value as either assets or liabilities in the Consolidated Balance Sheets. Changes in the instruments’ fair value are accounted for based on their intended use. Gains and losses on derivatives that are designated and qualify for cash flow hedge accounting are recorded as a component of accumulated other comprehensive (loss) income (“AOCI”) and reclassified into earnings when the hedged transaction materializes. Gains and losses on derivatives that are designated and qualify for net investment hedge accounting are recorded as a component of AOCI and will not be reclassified into earnings until the Company’s investment in its New Zealand operations is partially or completely liquidated. The ineffective portion of any hedge, changes in the fair value of derivatives not designated as hedging instruments and those which are no longer effective as hedging instruments, are recognized immediately in earnings.

FOREIGN CURRENCY EXCHANGE AND OPTION CONTRACTS

The functional currency of Rayonier’s wholly owned subsidiary, Rayonier New Zealand Limited, and the New Zealand subsidiary is the New Zealand dollar. The New Zealand subsidiary is exposed to foreign currency risk on export sales and ocean freight payments which are mainly denominated in U.S. dollars. The New Zealand subsidiary typically hedges 35% to 90% of its estimated foreign currency exposure with respect to the following three months forecasted sales and purchases, 25% to 75% of forecasted sales and purchases for the forward three to 12 months and up to 50% of the forward 12 to 18 months. Foreign currency exposure from the New Zealand subsidiary’s trading operations is typically hedged based on the following three months forecasted sales and purchases. As of June 30, 2019, foreign currency exchange contracts and foreign currency option contracts had maturity dates through November 2020 and September 2020, respectively.

Foreign currency exchange and option contracts hedging foreign currency risk on export sales and ocean freight payments qualify for cash flow hedge accounting. The fair value of foreign currency exchange contracts is determined by a mark-to-market valuation which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate. The fair value of foreign currency option contracts is based on a mark-to-market calculation using the Black-Scholes option pricing model.

The Company may de-designate these cash flow hedge relationships in advance or at the occurrence of the forecasted transaction. The portion of gains or losses on the derivative instrument previously accumulated in other comprehensive income for de-designated hedges remains in accumulated other comprehensive (loss) income until the forecasted transaction affects earnings. Changes in the value of derivative instruments after de-designation are recorded in earnings.

INTEREST RATE SWAPS

The Company is exposed to cash flow interest rate risk on its variable-rate Term Credit Agreement and Incremental Term Loan Agreement and uses variable-to-fixed interest rate swaps to hedge this exposure. For these derivative instruments, the Company reports the gains/losses from the fluctuations in the fair market value of the hedges in AOCI and reclassifies them to earnings as interest expense in the same period in which the hedged interest payments affect earnings.

19

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

The following table contains information on the outstanding interest rate swaps as of June 30, 2019:

Outstanding Interest Rate Swaps (a)
Date Entered Into	Term	Notional Amount		Related Debt Facility	Fixed Rate of Swap		Bank Margin on Debt		Total Effective Interest Rate (b)
August 2015	9 years		$170,000	Term Credit Agreement	2.20	%	1.63	%	3.83	%
August 2015	9 years	180,000		Term Credit Agreement	2.35	%	1.63	%	3.98	%
April 2016	10 years	100,000		Incremental Term Loan	1.60	%	1.90	%	3.50	%
April 2016	10 years	100,000		Incremental Term Loan	1.60	%	1.90	%	3.50	%
July 2016	10 years	100,000		Incremental Term Loan	1.26	%	1.90	%	3.16	%

(a) All interest rate swaps have been designated as interest rate cash flow hedges and qualify for hedge accounting.

(b) Rate is before estimated patronage payments.

CARBON OPTIONS

The New Zealand subsidiary enters into carbon options from time to time to sell carbon assets at certain prices. The fair value of carbon options is determined by a mark-to-market valuation using the Black-Scholes option pricing model, which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate. Changes in fair value of the carbon option contracts are recorded in “Interest and other miscellaneous income, net” as the contracts did not qualify for hedge accounting treatment. As of June 30, 2019, carbon option contracts had maturity dates through April 2020.

The following tables demonstrate the impact, gross of tax, of the Company’s derivatives on the Consolidated Statements of Income and Comprehensive Income for the three and six months ended June 30, 2019 and 2018.

		Three Months Ended June 30,
	Income Statement Location	2019			2018
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	Other comprehensive (loss) income		($219	)		($6,630	)
Foreign currency option contracts	Other comprehensive (loss) income	(107		)	(539		)
Interest rate swaps	Other comprehensive (loss) income	(19,284		)	5,690
Derivatives designated as a net investment hedge:
Foreign currency exchange contract	Other comprehensive (loss) income	—			(454		)
Derivatives not designated as hedging instruments:
Foreign currency exchange contracts	Interest and other miscellaneous income, net	152			2,479
Carbon option contracts	Interest and other miscellaneous income, net	12			—

20

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

		Six Months Ended June 30,
	Income Statement Location	2019			2018
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	Other comprehensive (loss) income		$900			($5,398	)
Foreign currency option contracts	Other comprehensive (loss) income	(30		)	(359		)
Interest rate swaps	Other comprehensive (loss) income	(30,831		)	21,287
Derivatives designated as a net investment hedge:
Foreign currency exchange contract	Other comprehensive (loss) income	—			(344		)
Derivatives not designated as hedging instruments:
Foreign currency exchange contracts	Interest and other miscellaneous income, net	135			2,608
Carbon option contracts	Interest and other miscellaneous income, net	415			—

During the next 12 months, the amount of the June 30, 2019 AOCI balance, net of tax, expected to be reclassified into earnings as a result of the maturation of the Company’s derivative instruments is a loss of approximately $0.5 million.

The following table contains the notional amounts of the derivative financial instruments recorded in the Consolidated Balance Sheets:

	Notional Amount
	June 30, 2019		December 31, 2018
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts		$100,500		$69,950
Foreign currency option contracts	20,000		24,000
Interest rate swaps	650,000		650,000
Derivative not designated as a hedging instrument:
Foreign currency exchange contracts	—		9,396
Carbon options (a)	3,102		2,517

(a)    Notional amount for carbon options is calculated as the number of units outstanding multiplied by the spot price as of June 30, 2019.

21

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

The following table contains the fair values of the derivative financial instruments recorded in the Consolidated Balance Sheets:

	Location on Balance Sheet	Fair Value Assets / (Liabilities) (a)
		June 30, 2019			December 31, 2018
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	Other current assets		$304		—
	Other assets	159			—
	Other current liabilities	(1,083		)	(1,569		)
	Other non-current liabilities	(50		)	—
Foreign currency option contracts	Other current assets	123			217
	Other assets	63			102
	Other current liabilities	(37		)	(106		)
	Other non-current liabilities	(33		)	(68		)
Interest rate swaps	Other assets	4,159			23,735
	Other non-current liabilities	(11,256		)	—
Derivative not designated as a hedging instrument:
Foreign currency exchange contracts	Other current assets	—			152
	Other current liabilities	—			(24		)
Carbon options	Other current liabilities	(2		)	(322		)
Total derivative contracts:
Other current assets			$427			$369
Other assets		4,381			23,837
Total derivative assets			$4,808			$24,206
Other current liabilities		(1,122		)	(2,021		)
Other non-current liabilities		(11,339		)	(68		)
Total derivative liabilities			($12,461	)		($2,089	)

(a)    See Note 14 — Fair Value Measurements for further information on the fair value of the Company’s derivatives including their classification within the fair value hierarchy.

OFFSETTING DERIVATIVES

Derivative financial instruments are presented at their gross fair values in the Consolidated Balance Sheets. The Company’s derivative financial instruments are not subject to master netting arrangements, which would allow the right of offset.

22

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

14. FAIR VALUE MEASUREMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

A three-level hierarchy that prioritizes the inputs used to measure fair value was established in the Accounting Standards Codification as follows:

Level 1 — Quoted prices in active markets for identical assets or liabilities.

Level 2 — Observable inputs other than quoted prices included in Level 1.

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The following table presents the carrying amount and estimated fair values of financial instruments held by the Company at June 30, 2019 and December 31, 2018, using market information and what the Company believes to be appropriate valuation methodologies under GAAP:

	June 30, 2019							December 31, 2018
Asset (Liability) (a)	Carrying Amount			Fair Value				Carrying Amount			Fair Value
				Level 1		Level 2					Level 1		Level 2
Cash and cash equivalents		$130,956			$130,956	—			$148,374			$148,374	—
Restricted cash (b)	3,754			3,754		—		8,080			8,080		—
Long-term debt (c)	(972,848		)	—		(981,500	)	(972,567		)	—		(975,845	)
Interest rate swaps (d)	(7,097		)	—		(7,097	)	23,735			—		23,735
Foreign currency exchange contracts (d)	(670		)	—		(670	)	(1,442		)	—		(1,442	)
Foreign currency option contracts (d)	116			—		116		145			—		145
Carbon option contracts (d)	(2		)	—		(2	)	(322		)	—		(322	)

(a) The Company did not have Level 3 assets or liabilities at June 30, 2019 and December 31, 2018.

(b) Restricted cash represents the proceeds from like-kind exchange sales deposited with a third-party intermediary and cash held in escrow for a real estate sale. See Note 18 — Restricted Cash for additional information.

(c) The carrying amount of long-term debt is presented net of capitalized debt costs on non-revolving debt. See Note 6 — Debt for additional information.

(d) See Note 13 — Derivative Financial Instruments and Hedging Activities for information regarding the Consolidated Balance Sheets classification of the Company’s derivative financial instruments.

Rayonier uses the following methods and assumptions in estimating the fair value of its financial instruments:

Cash and cash equivalents and Restricted cash — The carrying amount is equal to fair market value.

Debt — The fair value of fixed rate debt is based upon quoted market prices for debt with similar terms and maturities. The variable rate debt adjusts with changes in the market rate, therefore the carrying value approximates fair value.

Interest rate swap agreements — The fair value of interest rate contracts is determined by discounting the expected future cash flows, for each instrument, at prevailing interest rates.

Foreign currency exchange contracts — The fair value of foreign currency exchange contracts is determined by a mark-to-market valuation, which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate.

Foreign currency option contracts — The fair value of foreign currency option contracts is based on a mark-to-market calculation using the Black-Scholes option pricing model.

Carbon option contracts — The fair value of carbon option contracts is determined by a mark-to-market valuation using the Black-Scholes option pricing model, which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate.

23

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

15. EMPLOYEE BENEFIT PLANS

The Company has one qualified non-contributory defined benefit pension plan covering a portion of its employees and an unfunded plan that provides benefits in excess of amounts allowable under current tax law in the qualified plan. Both plans are closed to new participants. Effective December 31, 2016, the Company froze benefits for all employees participating in the pension plan. In lieu of the pension plan, the Company provides those employees with an enhanced 401(k) plan match. Employee benefit plan liabilities are calculated using actuarial estimates and management assumptions. These estimates are based on historical information, along with certain assumptions about future events. Changes in assumptions, as well as changes in actual experience, could cause the estimates to change.

As of June 30, 2019, the Company has paid $0.4 million of the approximately $1.3 million in current year mandatory pension contribution requirements (based on actuarially determined estimates and IRS minimum funding requirements).

The net pension and postretirement benefit costs (credit) that have been recorded are shown in the following table:

Components of Net Periodic Benefit Cost (Credit)	Income Statement Location	Pension						Postretirement
		Three Months Ended June 30,						Three Months Ended June 30,
		2019			2018			2019		2018
Service cost	Selling and general expenses	—			—				$1		$2
Interest cost	Interest and other miscellaneous income, net	799			759			13		13
Expected return on plan assets (a)	Interest and other miscellaneous income, net	(777		)	(984		)	—		—
Amortization of losses	Interest and other miscellaneous income, net	112			178			—		—
Net periodic benefit cost (credit)			$134			($47	)		$14		$15

Components of Net Periodic Benefit Cost (Credit)	Income Statement Location	Pension						Postretirement
		Six Months Ended June 30,						Six Months Ended June 30,
		2019			2018			2019		2018
Service cost	Selling and general expenses	—			—				$3		$3
Interest cost	Interest and other miscellaneous income, net	1,599			1,510			27		25
Expected return on plan assets (a)	Interest and other miscellaneous income, net	(1,554		)	(1,968		)	—		—
Amortization of losses	Interest and other miscellaneous income, net	224			338			—		1
Net periodic benefit cost (credit)			$269			($120	)		$30		$29

(a) The weighted-average expected long-term rate of return on plan assets used in computing 2019 net periodic benefit cost for pension benefits is 5.7%.

24

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

16. OTHER OPERATING (EXPENSE) INCOME, NET

Other operating (expense) income, net consisted of the following:

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Foreign currency (expense) income		($659	)		$1,267			($577	)		$514
Gain on sale or disposal of property and equipment	35			12			56			27
(Loss) gain on foreign currency exchange and option contracts	(60		)	386			(113		)	1,819
Log trading marketing fees	80			62			137			131
Income from the sale of unused Internet Protocol addresses	—			—			—			646
Other expense, net	(1,365		)	(68		)	(1,437		)	(108		)
Total		($1,969	)		$1,659			($1,934	)		$3,029

17. INVENTORY

As of June 30, 2019 and December 31, 2018, Rayonier’s inventory consisted entirely of finished goods, as follows:

	June 30, 2019		December 31, 2018
Finished goods inventory
Real estate inventory (a)		$18,327		$11,919
Log inventory	5,270		3,784
Total inventory		$23,597		$15,703

(a)    Represents cost of HBU real estate (including capitalized development investments) expected to be sold within 12 months.

18. RESTRICTED CASH

In order to qualify for like-kind exchange (“LKE”) treatment, the proceeds from real estate sales must be deposited with a third-party intermediary. These proceeds are accounted for as restricted cash until a suitable replacement property is acquired. In the event LKE purchases are not completed, the proceeds are returned to the Company after 180 days and reclassified as available cash. As of June 30, 2019 and December 31, 2018, the Company had $3.8 million and $8.1 million, respectively, of proceeds from real estate sales classified as restricted cash which were deposited with an LKE intermediary as well as cash held in escrow for a real estate sale.

The following table contains the amounts of restricted cash recorded in the Consolidated Balance Sheets and Consolidated Statements of Cash Flows for the six months ended June 30, 2019:

	June 30, 2019
Restricted cash deposited with LKE intermediary	$3,204
Restricted cash held in escrow	550
Total restricted cash shown in the Consolidated Balance Sheets	3,754
Cash and cash equivalents	130,956
Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows	$134,710

25

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

19. ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

The following table summarizes the changes in AOCI by component for the six months ended June 30, 2019 and the year ended December 31, 2018. All amounts are presented net of tax and exclude portions attributable to noncontrolling interest.

	Foreign currency translation (loss) gains			Net investment hedges of New Zealand subsidiary			Cash flow hedges				Employee benefit plans				Total
Balance as of December 31, 2017		$15,975			$1,665			$16,184				($20,407	)			$13,417
Other comprehensive (loss) income before reclassifications	(16,985		)	(344		)	5,944				(1,594		)		(12,979		)
Amounts reclassified from accumulated other comprehensive (loss) income	—			—			(163		)		(36		)		(199		)
Net other comprehensive (loss)/income	(16,985		)	(344		)	5,781				(1,630		)		(13,178		)
Balance as of December 31, 2018		($1,010	)		$1,321			$21,965				($22,037	)			$239
Other comprehensive (loss) income before reclassifications	375			—			(30,211		)	(a)	—				(29,836		)
Amounts reclassified from accumulated other comprehensive (loss) income	—			—			(138		)		224			(b)	86
Net other comprehensive (loss)/income	375			—			(30,349		)		224				(29,750		)
Balance as of June 30, 2019		($635	)		$1,321			($8,384	)			($21,813	)			($29,511	)

(a) Includes $30.8 million of other comprehensive income related to interest rate swaps. See Note 13 — Derivative Financial Instruments and Hedging Activities for additional information.

(b) This component of other comprehensive income (loss) is included in the computation of net periodic pension and post-retirement costs. See Note 15 — Employee Benefit Plans for additional information.

The following table presents details of the amounts reclassified in their entirety from AOCI to net income for the six months ended June 30, 2019 and June 30, 2018:

Details about accumulated other comprehensive (loss) income components	Amount reclassified from accumulated other comprehensive (loss) income						Affected line item in the income statement
	June 30, 2019			June 30, 2018
Realized (gain) on foreign currency exchange contracts		($190	)		($1,654	)	Other operating (expense) income, net
Realized loss (gain) on foreign currency option contracts	(60		)	(165		)	Other operating (expense) income, net
Noncontrolling interest	58			419			Comprehensive (loss) income attributable to noncontrolling interest
Income tax expense from gain on foreign currency contracts	54			391			Income tax expense
Net gain from accumulated other comprehensive income		($138	)		($1,009	)

26

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

20. CONSOLIDATING FINANCIAL STATEMENTS

The condensed consolidating financial information below follows the same accounting policies as described in the consolidated financial statements, except for the use of the equity method of accounting to reflect ownership interests in wholly-owned subsidiaries, which are eliminated upon consolidation, and the allocation of certain expenses of Rayonier Inc. incurred for the benefit of its subsidiaries.

In March 2012, Rayonier Inc. issued $325 million of 3.75% Senior Notes due 2022. In connection with these notes, the Company provides the following condensed consolidating financial information in accordance with SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.

The subsidiary guarantors, Rayonier Operating Company LLC (“ROC”) and Rayonier TRS Holdings Inc., are wholly-owned by the parent company, Rayonier Inc. The notes are fully and unconditionally guaranteed on a joint and several basis by the guarantor subsidiaries.

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME  AND COMPREHENSIVE INCOME
	For the Three Months Ended June 30, 2019
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	—			—				$184,800		—				$184,800
Costs and Expenses
Cost of sales	—			—			(140,454		)	—			(140,454		)
Selling and general expenses	—			(5,660		)	(5,324		)	—			(10,984		)
Other operating expense, net	—			(1,091		)	(878		)	—			(1,969		)
	—			(6,751		)	(146,656		)	—			(153,407		)
OPERATING (LOSS) INCOME	—			(6,751		)	38,144			—			31,393
Interest expense	(3,140		)	(4,769		)	(13		)	—			(7,922		)
Interest and miscellaneous income (expense), net	(457		)	928			586			—			1,057
Equity in income from subsidiaries	22,349			33,071			—			(55,420		)	—
INCOME BEFORE INCOME TAXES	18,752			22,479			38,717			(55,420		)	24,528
Income tax expense	—			(130		)	(3,478		)	—			(3,608		)
NET INCOME	18,752			22,349			35,239			(55,420		)	20,920
Less: Net income attributable to noncontrolling interest	—			—			(2,168		)	—			(2,168		)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	18,752			22,349			33,071			(55,420		)	18,752
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment, net of income tax	(4,305		)	—			(5,604		)	4,305			(5,604		)
Cash flow hedges, net of income tax	(19,465		)	(19,284		)	(235		)	19,465			(19,519		)
Amortization of pension and postretirement plans, net of income tax	112			112			—			(112		)	112
Total other comprehensive (loss) income	(23,658		)	(19,172		)	(5,839		)	23,658			(25,011		)
COMPREHENSIVE (LOSS) INCOME	(4,906		)	3,177			29,400			(31,762		)	(4,091		)
Less: Comprehensive income attributable to noncontrolling interest	—			—			(815		)	—			(815		)
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.		($4,906	)		$3,177			$28,585			($31,762	)		($4,906	)

27

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME  AND COMPREHENSIVE INCOME
	For the Three Months Ended June 30, 2018
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	—			—				$245,906		—				$245,906
Costs and Expenses
Cost of sales	—			—			(184,418		)	—			(184,418		)
Selling and general expenses	—			(5,471		)	(6,031		)	—			(11,502		)
Other operating (expense) income, net	—			(40		)	1,699			—			1,659
	—			(5,511		)	(188,750		)	—			(194,261		)
OPERATING (LOSS) INCOME	—			(5,511		)	57,156			—			51,645
Interest expense	(3,139		)	(4,900		)	(63		)	—			(8,102		)
Interest and miscellaneous income (expense), net	2,734			746			(575		)	—			2,905
Equity in income from subsidiaries	36,663			46,419			—			(83,082		)	—
INCOME BEFORE INCOME TAXES	36,258			36,754			56,518			(83,082		)	46,448
Income tax expense	—			(91		)	(7,019		)	—			(7,110		)
NET INCOME	36,258			36,663			49,499			(83,082		)	39,338
Less: Net income attributable to noncontrolling interest	—			—			(3,080		)	—			(3,080		)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	36,258			36,663			46,419			(83,082		)	36,258
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment, net of income tax	(22,856		)	341			(30,101		)	22,856			(29,760		)
Cash flow hedges, net of income tax	1,716			5,690			(5,161		)	(1,716		)	529
Amortization of pension and postretirement plans, net of income tax	178			178			—			(178		)	178
Total other comprehensive (loss) income	(20,962		)	6,209			(35,262		)	20,962			(29,053		)
COMPREHENSIVE INCOME	15,296			42,872			14,237			(62,120		)	10,285
Less: Comprehensive loss attributable to noncontrolling interest	—			—			5,011			—			5,011
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.		$15,296			$42,872			$19,248			($62,120	)		$15,296

28

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME  AND COMPREHENSIVE INCOME
	Six Months Ended June 30, 2019
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	—			—				$376,346		—				$376,346
Costs and Expenses
Cost of sales	—			—			(283,705		)	—			(283,705		)
Selling and general expenses	—			(10,503		)	(10,291		)	—			(20,794		)
Other operating expense, net	—			(1,090		)	(844		)	—			(1,934		)
	—			(11,593		)	(294,840		)	—			(306,433		)
OPERATING (LOSS) INCOME	—			(11,593		)	81,506			—			69,913
Interest expense	(6,278		)	(9,316		)	(38		)	—			(15,632		)
Interest and miscellaneous income (expense), net	(913		)	1,892			1,411			—			2,390
Equity in income from subsidiaries	50,737			70,501			—			(121,238		)	—
INCOME BEFORE INCOME TAXES	43,546			51,484			82,879			(121,238		)	56,671
Income tax expense	—			(747		)	(7,211		)	—			(7,958		)
NET INCOME	43,546			50,737			75,668			(121,238		)	48,713
Less: Net income attributable to noncontrolling interest	—			—			(5,167		)	—			(5,167		)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	43,546			50,737			70,501			(121,238		)	43,546
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment, net of income tax	374			(90		)	520			(375		)	429
Cash flow hedges, net of income tax	(30,349		)	(30,832		)	627			30,349			(30,205		)
Amortization of pension and postretirement plans, net of income tax	224			224			—			(224		)	224
Total other comprehensive (loss) income	(29,751		)	(30,698		)	1,147			29,750			(29,552		)
COMPREHENSIVE INCOME	13,795			20,039			76,815			(91,488		)	19,161
Less: Comprehensive income attributable to noncontrolling interest	—			—			(5,366		)	—			(5,366		)
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.		$13,795			$20,039			$71,449			($91,488	)		$13,795

29

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME  AND COMPREHENSIVE INCOME
	Six Months Ended June 30, 2018
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	—			—				$449,101		—				$449,101
Costs and Expenses
Cost of sales	—			—			(322,906		)	—			(322,906		)
Selling and general expenses	—			(9,859		)	(10,645		)	—			(20,504		)
Other operating (expense) income, net	(12		)	595			2,446			—			3,029
	(12		)	(9,264		)	(331,105		)	—			(340,381		)
OPERATING (LOSS) INCOME	(12		)	(9,264		)	117,996			—			108,720
Interest expense	(6,278		)	(9,555		)	(322		)	—			(16,155		)
Interest and miscellaneous income (expense), net	5,362			1,511			(3,348		)	—			3,525
Equity in income from subsidiaries	77,725			95,246			—			(172,971		)	—
INCOME BEFORE INCOME TAXES	76,797			77,938			114,326			(172,971		)	96,090
Income tax expense	—			(213		)	(13,834		)	—			(14,047		)
NET INCOME	76,797			77,725			100,492			(172,971		)	82,043
Less: Net income attributable to noncontrolling interest	—			—			(5,246		)	—			(5,246		)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	76,797			77,725			95,246			(172,971		)	76,797
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment, net of income tax	(15,252		)	452			(20,524		)	15,252			(20,072		)
Cash flow hedges, net of income tax	18,097			21,287			(4,144		)	(18,097		)	17,143
Amortization of pension and postretirement plans, net of income tax	338			338			—			(338		)	338
Total other comprehensive (loss) income	3,183			22,077			(24,668		)	(3,183		)	(2,591		)
COMPREHENSIVE INCOME	79,980			99,802			75,824			(176,154		)	79,452
Less: Comprehensive loss attributable to noncontrolling interest	—			—			528			—			528
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.		$79,980			$99,802			$76,352			($176,154	)		$79,980

30

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

	CONDENSED CONSOLIDATING BALANCE SHEETS
	As of June 30, 2019
	Rayonier Inc. (Parent Issuer)		Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$84		$92,874			$37,998		—				$130,956
Accounts receivable, less allowance for doubtful accounts	—		1,919			43,012			—			44,931
Inventory	—		—			23,597			—			23,597
Prepaid expenses	—		2,286			18,295			—			20,581
Other current assets	—		97			593			—			690
Total current assets	84		97,176			123,495			—			220,755
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—			2,392,389			—			2,392,389
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS	—		—			77,072			—			77,072
NET PROPERTY, PLANT AND EQUIPMENT	—		16,439			5,605			—			22,044
RESTRICTED CASH	—		—			3,754			—			3,754
RIGHT-OF-USE ASSETS	—		35,291			68,725			—			104,016
INVESTMENT IN SUBSIDIARIES	1,771,540		3,009,380			—			(4,780,920		)	—
INTERCOMPANY RECEIVABLE	56,257		(644,161		)	587,904			—			—
OTHER ASSETS	2		169			40,850			—			41,021
TOTAL ASSETS		$1,827,883		$2,514,294			$3,299,794			($4,780,920	)		$2,861,051
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	—			$4,227			$20,717		—				$24,944
Accrued taxes	—		170			5,765			—			5,935
Accrued payroll and benefits	—		3,123			2,328			—			5,451
Accrued interest	3,046		1,885			—			—			4,931
Deferred revenue	—		—			19,798			—			19,798
Other current liabilities	—		5,793			19,233			—			25,026
Total current liabilities	3,046		15,198			67,841			—			86,085
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS	323,987		648,861			—			—			972,848
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		30,067			(684		)	—			29,383
LONG-TERM LEASE LIABILITY	—		30,130			63,619			—			93,749
OTHER NON-CURRENT LIABILITIES	—		18,498			60,190			—			78,688
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,500,850		1,771,540			3,009,380			(4,780,920		)	1,500,850
Noncontrolling interest	—		—			99,448			—			99,448
TOTAL SHAREHOLDERS’ EQUITY	1,500,850		1,771,540			3,108,828			(4,780,920		)	1,600,298
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$1,827,883		$2,514,294			$3,299,794			($4,780,920	)		$2,861,051

31

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

	CONDENSED CONSOLIDATING BALANCE SHEETS
	As of December 31, 2018
	Rayonier Inc. (Parent Issuer)		Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$361		$104,777			$43,236		—				$148,374
Accounts receivable, less allowance for doubtful accounts	—		3,752			22,399			—			26,151
Inventory	—		—			15,703			—			15,703
Prepaid expenses	—		977			16,039			—			17,016
Other current assets	—		108			501			—			609
Total current assets	361		109,614			97,878			—			207,853
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—			2,401,327			—			2,401,327
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS	—		—			85,609			—			85,609
NET PROPERTY, PLANT AND EQUIPMENT	—		16,940			5,811			—			22,751
RESTRICTED CASH	—		—			8,080			—			8,080
INVESTMENT IN SUBSIDIARIES	1,833,899		3,022,875			—			(4,856,774		)	—
INTERCOMPANY RECEIVABLE	49,461		(638,424		)	588,963			—			—
OTHER ASSETS	2		19,244			35,800			—			55,046
TOTAL ASSETS		$1,883,723		$2,530,249			$3,223,468			($4,856,774	)		$2,780,666
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	—			$1,616			$16,403		—				$18,019
Accrued taxes	—		8			3,170			—			3,178
Accrued payroll and benefits	—		5,848			4,568			—			10,416
Accrued interest	3,047		1,960			—			—			5,007
Deferred revenue	—		—			10,447			—			10,447
Other current liabilities	—		216			16,258			—			16,474
Total current liabilities	3,047		9,648			50,846			—			63,541
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS	323,803		648,764			—			—			972,567
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		30,484			(684		)	—			29,800
OTHER NON-CURRENT LIABILITIES	—		7,454			52,754			—			60,208
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,556,873		1,833,899			3,022,875			(4,856,774		)	1,556,873
Noncontrolling interest	—		—			97,677			—			97,677
TOTAL SHAREHOLDERS’ EQUITY	1,556,873		1,833,899			3,120,552			(4,856,774		)	1,654,550
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$1,883,723		$2,530,249			$3,223,468			($4,856,774	)		$2,780,666

32

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
	Six Months Ended June 30, 2019
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments		Total Consolidated
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES		($14,180	)		$25,406			$105,728		—			$116,954
INVESTING ACTIVITIES
Capital expenditures	—			—			(29,505		)	—		(29,505		)
Real estate development investments	—			—			(999		)	—		(999		)
Purchase of timberlands	—			—			(26,396		)	—		(26,396		)
Investment in subsidiaries	—			832			—			(832	)	—
Other	—			(7,539		)	3,651			—		(3,888		)
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	—			(6,707		)	(53,249		)	(832	)	(60,788		)
FINANCING ACTIVITIES
Dividends paid	(69,798		)	(1,309		)				—		(71,107		)
Proceeds from the issuance of common shares under incentive stock plan	774			—			—			—		774
Repurchase of common shares	(4,241		)	—			—			—		(4,241		)
Other	—			—			133			—		133
Distribution to minority shareholder	—			—			(3,594		)	—		(3,594		)
Intercompany distributions	87,168			(29,293		)	(58,707		)	832		—
CASH USED FOR FINANCING ACTIVITIES	13,903			(30,602		)	(62,168		)	832		(78,035		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			125			—		125
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Change in cash, cash equivalents and restricted cash	(277		)	(11,903		)	(9,564		)	—		(21,744		)
Balance, beginning of year	361			104,777			51,316			—		156,454
Balance, end of period		$84			$92,874			$41,752		—			$134,710

33

RAYONIER INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

(Unaudited)

(Dollar amounts in thousands unless otherwise stated)

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
	Six Months Ended June 30, 2018
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments		Total Consolidated
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES		($7,491	)		$57,280			$131,794		—			$181,583
INVESTING ACTIVITIES
Capital expenditures	—			(58		)	(25,862		)	—		(25,920		)
Real estate development investments	—			—			(4,501		)	—		(4,501		)
Purchase of timberlands	—			—			(31,234		)	—		(31,234		)
Investment in subsidiaries	—			40,441			—			(40,441	)	—
Other	—			—			113			—		113
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	—			40,383			(61,484		)	(40,441	)	(61,542		)
FINANCING ACTIVITIES
Issuance of debt	—			—			1,014			—		1,014
Repayment of debt	—			(50,000		)	(4,389		)	—		(54,389		)
Dividends paid	(67,053		)	—			—			—		(67,053		)
Proceeds from the issuance of common shares under incentive stock plan	7,824			—			—			—		7,824
Repurchase of common shares	(2,966		)	—			—			—		(2,966		)
Issuance of intercompany notes	(9,000		)	—			9,000			—		—
Intercompany distributions	107,102			(60,741		)	(86,802		)	40,441		—
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	35,907			(110,741		)	(81,177		)	40,441		(115,570		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			(578		)	—		(578		)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Change in cash, cash equivalents and restricted cash	28,416			(13,078		)	(11,445		)	—		3,893
Balance, beginning of year	48,564			25,042			98,750			—		172,356
Balance, end of period		$76,980			$11,964			$87,305		—			$176,249

34

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (“MD&A”)

When we refer to “we,” “us,” “our,” “the Company,” or “Rayonier,” we mean Rayonier Inc. and its consolidated subsidiaries. References herein to “Notes to Financial Statements” refer to the Notes to Consolidated Financial Statements of Rayonier Inc. included in Item 1 of this report.

This MD&A is intended to provide a reader of our financial statements with a narrative from the perspective of management on our financial condition, results of operations, liquidity, and certain other factors which may affect future results. Our MD&A should be read in conjunction with our Consolidated Financial Statements included in Item 1 of this report, our Annual Report on Form 10-K for the year ended December 31, 2018 (the “2018 Form 10-K”) and information contained in our subsequent reports filed with the Securities and Exchange Commission (the “SEC”).

FORWARD-LOOKING STATEMENTS

Certain statements in this document regarding anticipated financial outcomes, including Rayonier’s earnings guidance, if any, business and market conditions, outlook, expected dividend rate, Rayonier’s business strategies, including expected harvest schedules, timberland acquisitions and dispositions, the anticipated benefits of Rayonier’s business strategies, and other similar statements relating to Rayonier’s future events, developments, or financial or operational performance or results, are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are identified by the use of words such as “may,” “will,” “should,” “expect,” “estimate,” “believe,” “intend,” “project,” “anticipate” and other similar language. However, the absence of these or similar words or expressions does not mean that a statement is not forward-looking. While management believes that these forward-looking statements are reasonable when made, forward-looking statements are not guarantees of future performance or events and undue reliance should not be placed on these statements. The risk factors contained in Item 1A — Risk Factors in the 2018 Form 10-K and similar discussions included in other reports that we subsequently file with the SEC, among others, could cause actual results or events to differ materially from the Company’s historical experience and those expressed in forward-looking statements made in this document.

Forward-looking statements are only as of the date they are made, and the Company undertakes no duty to update its forward-looking statements except as required by law. You are advised, however, to review any subsequent disclosures the Company makes on related subjects in its subsequent reports filed with the SEC.

NON-GAAP MEASURES

To supplement Rayonier’s financial statements presented in accordance with generally accepted accounting principles in the United States (“GAAP”), Rayonier uses certain non-GAAP measures, including “cash available for distribution,” and “Adjusted EBITDA,” which are defined and further explained in Performance and Liquidity Indicators below. Reconciliation of such measures to the nearest GAAP measures can also be found in Performance and Liquidity Indicators below. Rayonier’s definitions of these non-GAAP measures may differ from similarly titled measures used by others. These non-GAAP measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with GAAP.

35

OUR COMPANY

We are a leading timberland real estate investment trust (“REIT”) with assets located in some of the most productive softwood timber growing regions in the United States and New Zealand. We invest in timberlands and actively manage them to provide current income and attractive long-term returns to our shareholders. Our revenues, operating income and cash flows are primarily derived from the following core business segments: Southern Timber, Pacific Northwest Timber, New Zealand Timber, Real Estate and Trading. As of June 30, 2019, we owned or leased under long-term agreements approximately 2.6 million acres of timberlands located in the U.S. South (1.8 million acres), U.S. Pacific Northwest (379,000 acres) and New Zealand (410,000 gross acres or 292,000 net plantable acres). Our New Zealand operations are conducted by Matariki Forestry Group, a joint venture (the “New Zealand subsidiary”), in which we maintain a 77% ownership interest.

SEGMENT INFORMATION

The Southern Timber, Pacific Northwest Timber and New Zealand Timber segments include all activities related to the harvesting of timber and other non-timber income activities, such as the licensing of properties for hunting, the leasing of properties for mineral extraction and cell towers, and carbon credit sales.

The Real Estate segment includes all U.S. and New Zealand land or leasehold sales disaggregated into five sales categories: Improved Development, Unimproved Development, Rural, Non-Strategic / Timberlands and Large Dispositions.

The Trading segment primarily reflects the log trading activities that support our New Zealand operations. The Trading segment complements the New Zealand Timber segment by providing added market intelligence, increasing the scale of export operations and achieving cost savings that directly benefit the New Zealand Timber segment. It also provides additional market intelligence that benefits our Southern and Pacific Northwest export log marketing.

INDUSTRY AND MARKET CONDITIONS

The demand for timber is directly related to the underlying demand for pulp, paper, packaging, lumber and other wood products. The significant majority of timber sold in our Southern Timber segment is consumed domestically. With a higher proportion of pulpwood, our Southern Timber segment relies heavily on downstream markets for pulp and paper, and to a lesser extent wood pellet markets. Our Pacific Northwest Timber segment relies primarily on domestic customers but also exports a significant volume of timber, particularly to China. Both the Southern and Pacific Northwest Timber segments rely on the strength of U.S. lumber markets as well as underlying housing starts. Our New Zealand Timber segment sells timber to domestic New Zealand wood products mills and also exports a significant portion of its volume to markets in China, South Korea and India. In addition to market dynamics in the Pacific Rim, the New Zealand Timber segment is subject to foreign exchange fluctuations, which can impact the operating results of the segment in U.S. dollar terms.

The Company is also subject to the risk of price fluctuations in its major cost components. The primary components of the Company's cost of sales are the cost basis of timber sold (depletion), the cost basis of real estate sold and logging and transportation costs (cut and haul). Depletion includes the amortization of capitalized costs (site preparation, planting and fertilization, real estate taxes, timberland lease payments and certain payroll costs). Other costs include amortization of capitalized costs related to road and bridge construction and software, depreciation of fixed assets and equipment, road maintenance, severance and excise taxes, fire prevention and real estate commissions and closing costs.

For additional information on market conditions impacting our business, see Results of Operations.

36

CRITICAL ACCOUNTING POLICIES AND USE OF ESTIMATES

The preparation of financial statements requires us to make estimates, assumptions and judgments that affect our assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. We base these estimates and assumptions on historical data and trends, current fact patterns, expectations and other sources of information we believe are reasonable. Actual results may differ from these estimates. See Note 1 — Basis of Presentation and Note 3 — Leases contained in Part I, Item 1 of this report for a discussion of the Company’s updated accounting policies on leases. For a full description of our critical accounting policies, see Item 7 — Management’s Discussion and Analysis of Financial Condition and Results of Operations in the 2018 Form 10-K.

DISCUSSION OF TIMBER INVENTORY AND SUSTAINABLE YIELD

See Item 1 — Business — Discussion of Timber Inventory and Sustainable Yield in the 2018 Form 10-K.

OUR TIMBERLANDS

Our timber operations are disaggregated into three geographically distinct segments: Southern Timber, Pacific Northwest Timber and New Zealand Timber. The following table provides a breakdown of our timberland holdings as of June 30, 2019 and December 31, 2018:

(acres in 000s)	As of June 30, 2019			As of December 31, 2018
	Owned	Leased	Total	Owned	Leased	Total
Southern
Alabama	228	14	242	229	14	243
Arkansas	—	9	9	—	9	9
Florida	298	73	371	290	73	363
Georgia	622	81	703	622	81	703
Louisiana	128	—	128	129	—	129
Mississippi	67	—	67	67	—	67
Oklahoma	92	—	92	92	—	92
South Carolina	18	—	18	18	—	18
Texas	178	—	178	182	—	182
	1,631	177	1,808	1,629	177	1,806
Pacific Northwest
Oregon	61	—	61	61	—	61
Washington	317	1	318	316	1	317
	378	1	379	377	1	378
New Zealand (a)	181	229	410	178	230	408
Total	2,190	407	2,597	2,184	408	2,592

(a) Represents legal acres owned and leased by the New Zealand subsidiary, in which Rayonier owns a 77% interest. As of June 30, 2019, legal acres in New Zealand consisted of 292,000 plantable acres and 118,000 non-productive acres.

37

The following tables detail activity for owned and leased acres in our timberland holdings by state from December 31, 2018 to June 30, 2019:

(acres in 000s)	Acres Owned
	December 31, 2018	Acquisitions	Sales		Other (a)	June 30, 2019
Southern
Alabama	229	—	(1	)	—	228
Florida	290	8	(1	)	1	298
Georgia	622	1	(1	)	—	622
Louisiana	129	—	(1	)	—	128
Mississippi	67	—	—		—	67
Oklahoma	92	—	—		—	92
South Carolina	18	—	—		—	18
Texas	182	—	(4	)	—	178
	1,629	9	(8	)	1	1,631
Pacific Northwest
Oregon	61	—	—		—	61
Washington	316	2	(1	)	—	317
	377	2	(1	)	—	378
New Zealand (b)	178	3	—		—	181
Total	2,184	14	(9	)	1	2,190

(a) Includes adjustments for land mapping reviews.

(b) Represents legal acres owned by the New Zealand subsidiary, in which Rayonier has a 77% interest.

(acres in 000s)	Acres Leased
	December 31, 2018	New Leases	Sold/Expired Leases (a)		Other (b)	June 30, 2019
Southern
Alabama	14	—	—		—	14
Arkansas	9	—	—		—	9
Florida	73	—	—		—	73
Georgia	81	—	—		—	81
	177	—	—		—	177
Pacific Northwest
Washington	1	—	—		—	1
New Zealand (c)	230	2	(3	)	—	229
Total	408	2	(3	)	—	407

(a) Includes acres previously under lease that have been harvested and activity for the relinquishment of leased acres.

(b) Includes adjustments for land mapping reviews.

(c) Represents legal acres leased by the New Zealand subsidiary, in which Rayonier has a 77% interest.

38

RESULTS OF OPERATIONS

CONSOLIDATED RESULTS

The following table provides key financial information by segment and on a consolidated basis:

	Three Months Ended June 30,						Six Months Ended June 30,
Financial Information (in millions)	2019			2018			2019			2018
Sales
Southern Timber		$46.2			$48.0			$107.0			$91.6
Pacific Northwest Timber	18.6			32.2			39.1			63.6
New Zealand Timber	62.1			69.7			119.3			122.6
Real Estate
Improved Development	0.2			1.3			0.5			2.5
Unimproved Development	14.4			—			15.4			7.4
Rural	6.8			4.8			19.5			6.5
Non-Strategic / Timberlands	1.1			43.7			8.1			69.5
Other (a)	—			—			0.1			—
Total Real Estate	22.5			49.9			43.5			85.9
Trading	35.5			46.2			67.5			85.4
Intersegment Eliminations	(0.1		)	—			(0.1		)	—
Total Sales		$184.8			$245.9			$376.3			$449.1
Operating Income (Loss)
Southern Timber		$14.7			$15.7			$36.3			$27.9
Pacific Northwest Timber	(3.8		)	5.6			(7.6		)	10.3
New Zealand Timber	12.8			17.8			28.5			33.7
Real Estate	15.5			18.9			25.5			46.9
Trading	(0.2		)	0.2			0.3			0.4
Corporate and other	(7.6		)	(6.5		)	(13.1		)	(10.5		)
Operating Income	31.4			51.6			69.9			108.7
Interest expense, interest income and other	(6.9		)	(5.2		)	(13.2		)	(12.7		)
Income tax expense	(3.6		)	(7.1		)	(8.0		)	(14.0		)
Net Income	20.9			39.3			48.7			82.0
Less: Net income attributable to noncontrolling interest	(2.1		)	(3.0		)	(5.2		)	(5.2		)
Net Income Attributable to Rayonier Inc.		$18.8			$36.3			$43.5			$76.8
Adjusted EBITDA (b)
Southern Timber		$27.6			$30.6			$68.9			$58.8
Pacific Northwest Timber	2.2			15.0			5.3			29.2
New Zealand Timber	20.0			25.8			42.0			47.5
Real Estate	18.3			45.9			35.7			78.7
Trading	(0.2		)	0.2			0.3			0.4
Corporate and Other	(7.3		)	(6.2		)	(12.5		)	(9.9		)
Total Adjusted EBITDA		$60.6			$111.3			$139.7			$204.6

(a) Includes marketing fees from Improved Development sales.

(b) Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators.

39

	Three Months Ended June 30,						Six Months Ended June 30,
Southern Timber Overview	2019			2018			2019			2018
Sales Volume (in thousands of tons)
Pine Pulpwood	755			905			1,877			1,848
Pine Sawtimber	462			503			1,206			1,083
Total Pine Volume	1,217			1,408			3,083			2,931
Hardwood	57			82			127			127
Total Volume	1,274			1,490			3,209			3,058
Percentage Delivered Sales	40		%	29		%	32		%	26		%
Percentage Stumpage Sales	60		%	71		%	68		%	74		%
Net Stumpage Pricing (dollars per ton)
Pine Pulpwood		$17.16			$16.05			$17.63			$16.59
Pine Sawtimber	25.82			26.23			26.16			26.27
Weighted Average Pine		$20.45			$19.69			$20.97			$20.17
Hardwood	16.86			12.12			15.17			11.54
Weighted Average Total		$20.29			$19.27			$20.74			$19.80
Summary Financial Data (in millions of dollars)
Timber Sales		$37.0			$37.3			$88.0			$75.4
Less: Cut, Haul & Freight	(11.1		)	(8.6		)	(21.5		)	(14.8		)
Net Stumpage Sales		$25.9			$28.7			$66.6			$60.6
Non-Timber Sales	9.2			10.8			19.0			16.2
Total Sales		$46.2			$48.0			$107.0			$91.6
Operating Income		$14.7			$15.7			$36.3			$27.9
(+) Depreciation, depletion and amortization	12.9			14.9			32.6			30.9
Adjusted EBITDA (a)		$27.6			$30.6			$68.9			$58.8
Other Data
Period-End Acres (in thousands)	1,808			1,808			1,808			1,808

(a) Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators.

40

	Three Months Ended June 30,						Six Months Ended June 30,
Pacific Northwest Timber Overview	2019			2018			2019			2018
Sales Volume (in thousands of tons)
Pulpwood	54			94			116			169
Sawtimber	197			281			417			585
Total Volume	250			374			533			753
Sales Volume (converted to MBF)
Pulpwood	5,076			8,859			11,009			16,029
Sawtimber	26,603			37,414			55,548			76,224
Total Volume	31,679			46,273			66,557			92,253
Percentage Delivered Sales	100		%	81		%	100		%	80		%
Percentage Sawtimber Sales	79		%	75		%	78		%	78		%
Delivered Log Pricing (in dollars per ton)
Pulpwood		$42.26			$49.76			$43.81			$47.49
Sawtimber	78.35			103.38			78.41			99.24
Weighted Average Log Price		$70.61			$88.45			$70.88			$86.41
Summary Financial Data (in millions of dollars)
Timber Sales		$17.7			$31.3			$37.8			$61.8
Less: Cut and Haul	(10.5		)	(11.6		)	(22.5		)	(23.0		)
Net Stumpage Sales		$7.2			$19.6			$15.3			$38.7
Non-Timber Sales	0.9			0.9			1.3			1.8
Total Sales		$18.6			$32.2			$39.1			$63.6
Operating Income (Loss)		($3.8	)		$5.6			($7.6	)		$10.3
(+) Depreciation, depletion and amortization	6.0			9.4			12.9			18.9
Adjusted EBITDA (a)		$2.2			$15.0			$5.3			$29.2
Other Data
Period-End Acres (in thousands)	379			378			379			378
Sawtimber (in dollars per MBF)		$587			$770			$599			$767
Estimated Percentage of Export Volume	26		%	27		%	21		%	24		%

(a) Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators.

41

	Three Months Ended June 30,						Six Months Ended June 30,
New Zealand Timber Overview	2019			2018			2019			2018
Sales Volume (in thousands of tons)
Domestic Pulpwood (Delivered)	125			141			238			254
Domestic Sawtimber (Delivered)	204			235			400			420
Export Pulpwood (Delivered)	37			22			77			38
Export Sawtimber (Delivered)	318			340			573			584
Total Volume	684			738			1,288			1,297
Delivered Log Pricing (in dollars per ton)
Domestic Pulpwood		$39.10			$38.28			$39.16			$37.26
Domestic Sawtimber	82.66			86.21			83.03			86.57
Export Sawtimber	111.81			120.80			113.78			119.51
Weighted Average Log Price		$89.16			$93.46			$89.78			$92.24
Summary Financial Data (in millions of dollars)
Timber Sales		$61.0			$69.0			$115.6			$119.6
Less: Cut and Haul	(22.9		)	(24.6		)	(43.1		)	(42.9		)
Less: Port and Freight Costs	(12.6		)	(14.5		)	(22.3		)	(23.1		)
Net Stumpage Sales		$25.5			$30.0			$50.2			$53.6
Non-Timber Sales / Carbon Credits	1.1			0.6			3.6			3.0
Total Sales		$62.1			$69.7			$119.3			$122.6
Operating Income		$12.8			$17.8			$28.5			$33.7
(+) Depreciation, depletion and amortization	7.2			8.0			13.5			13.7
Adjusted EBITDA (a)		$20.0			$25.8			$42.0			$47.5
Other Data
New Zealand Dollar to U.S. Dollar Exchange Rate (b)	0.6659			0.7104			0.6745			0.7170
Net Plantable Period-End Acres (in thousands)	292			294			292			294
Export Sawtimber (in dollars per JAS m3)		$130.00			$140.46			$132.29			$138.95
Domestic Sawtimber (in $NZD per tonne)		$136.55			$133.60			$135.47			$132.91

(a) Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators.

(b) Represents the period average rate.

42

	Three Months Ended June 30,				Six Months Ended June 30,
Real Estate Overview	2019		2018		2019		2018
Sales (in millions of dollars)
Improved Development		$0.2		$1.3		$0.5		$2.5
Unimproved Development	14.4		—		15.4		7.4
Rural	6.8		4.8		19.5		6.5
Non-Strategic / Timberlands	1.1		43.7		8.1		69.5
Other (a)	—		—		0.1		—
Total Sales		$22.5		$49.9		$43.5		$85.9
Acres Sold
Improved Development	0.9		4.1		2.0		8.2
Unimproved Development	784		—		791		625
Rural	1,717		1,071		5,055		1,486
Non-Strategic / Timberlands	763		14,729		3,096		21,910
Total Acres Sold	3,265		15,804		8,944		24,029
Gross Price per Acre (dollars per acre)
Improved Development		$198,276		$317,008		$251,961		$299,005
Unimproved Development	18,402		—		19,507		11,922
Rural	3,959		4,509		3,850		4,361
Non-Strategic / Timberlands	1,472		2,966		2,602		3,174
Weighted Average (Total)		$6,899		$3,153		$4,860		$3,575
Weighted Average (Adjusted) (b)		$6,848		$3,071		$4,803		$3,474
Operating Income		$15.5		$18.9		$25.5		$46.9
(+) Depreciation, depletion and amortization	1.2		13.7		4.5		16.8
(+) Non-cash cost of land and improved development	1.6		13.3		5.6		14.9
Adjusted EBITDA (c)		$18.3		$45.9		$35.7		$78.7

(a) Includes marketing fees from Improved Development sales.

(b) Excludes Improved Development.

(c) Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators.

43

	Three Months Ended June 30,					Six Months Ended June 30,
Capital Expenditures By Segment (in millions of dollars)	2019			2018		2019		2018
Timber Capital Expenditures
Southern Timber
Reforestation, silviculture and other capital expenditures		$5.7			$3.8		$8.5		$6.4
Property taxes	1.8			1.7		3.6		3.2
Lease payments	0.3			0.5		1.9		2.1
Allocated overhead	0.9			0.9		2.2		2.0
Subtotal Southern Timber		$8.7			$6.9		$16.1		$13.7
Pacific Northwest Timber
Reforestation, silviculture and other capital expenditures	0.8			1.0		3.6		3.5
Property taxes	0.2			0.2		0.4		0.4
Allocated overhead	0.8			0.6		1.6		1.2
Subtotal Pacific Northwest Timber		$1.8			$1.7		$5.6		$5.0
New Zealand Timber
Reforestation, silviculture and other capital expenditures	2.3			2.0		4.0		3.8
Property taxes	0.1			0.1		0.3		0.3
Lease payments	1.7			1.1		2.1		1.5
Allocated overhead	0.7			0.7		1.3		1.4
Subtotal New Zealand Timber		$4.8			$4.0		$7.7		$7.1
Total Timber Segments Capital Expenditures		$15.3			$12.6		$29.4		$25.8
Real Estate	0.1			0.1		0.1		0.1
Total Capital Expenditures		$15.4			$12.7		$29.5		$25.9
Timberland Acquisitions
Southern Timber		$14.0			$24.4		$15.9		$24.4
Pacific Northwest Timber	—			—		3.6		—
New Zealand Timber	—			6.8		6.9		6.8
Subtotal Timberland Acquisitions		$14.0			$31.2		$26.4		$31.2
Real Estate Development Investments (a)		($0.7	)		$2.2		$1.0		$4.5

(a) The three and six months ended June 30, 2019 includes $3.7 million of reimbursements from community development bonds.

44

The following tables summarize sales, operating income and Adjusted EBITDA variances for June 30, 2019 versus June 30, 2018 (millions of dollars):

Sales	Southern Timber				Pacific Northwest Timber				New Zealand Timber				Real Estate			Trading			Intersegment Eliminations			Total
Three Months Ended June 30, 2018		$48.0				$32.2				$69.7				$49.9			$46.2		—				$245.9
Volume	(4.1		)		(6.5		)		(4.9		)		(39.6		)	(8.0		)	—			(63.1		)
Price	1.3				(6.0		)		(2.6		)		12.2			(2.7		)	—			2.2
Non-timber sales	(1.5		)		(0.1		)		0.5				—			—			—			(1.1		)
Foreign exchange (a)	—				—				(1.6		)		—			—			—			(1.6		)
Other	2.5			(b)	(1.0		)	(b)	1.0			(c)	—			—			(0.1		)	2.5
Three Months Ended June 30, 2019		$46.2				$18.6				$62.1				$22.5			$35.5			($0.1	)		$184.8

(a)    Net of currency hedging impact.

(b)    Includes variance due to stumpage versus delivered sales.

(c)    Includes variance due to domestic versus export sales.

Sales	Southern Timber			Pacific Northwest Timber				New Zealand Timber				Real Estate			Trading			Intersegment Eliminations			Total
Six Months Ended June 30, 2018		$91.6			$63.6				$122.6				$85.9			$85.4		—				$449.1
Volume	3.0			(11.3		)		(0.7		)		(53.9		)	(15.0		)	—			(77.9		)
Price	3.0			(12.1		)		(3.5		)		11.5			(3.0		)	—			(4.1		)
Non-timber sales	2.8			(0.5		)		0.8				—			0.1			—			3.2
Foreign exchange (a)	—			—				(2.9		)		—			—			—			(2.9		)
Other	6.6		(b)	(0.6		)	(b)	3.0			(c)	—			—			(0.1		)	8.9
Six Months Ended June 30, 2019		$107.0			$39.1				$119.3				$43.5			$67.5			($0.1	)		$376.3

(a)    Net of currency hedging impact.

(b)    Includes variance due to stumpage versus delivered sales.

(c)    Includes variance due to domestic versus export sales.

Operating Income	Southern Timber			Pacific Northwest Timber			New Zealand Timber			Real Estate			Trading			Corporate and Other			Total
Three Months Ended June 30, 2018		$15.7			$5.6			$17.8			$18.9			$0.2			($6.5	)		$51.6
Volume	(2.0		)	(2.6		)	(1.7		)	(17.9		)	—			—			(24.2		)
Price	1.3			(6.0		)	(2.6		)	12.2			—			—			4.9
Cost	1.3			(1.0		)	0.3			(0.5		)	(0.4		)	—			(0.3		)
Non-timber income	(1.5		)	(0.1		)	0.4			—			—			—			(1.2		)
Foreign exchange (a)	—			—			(1.2		)	—			—			—			(1.2		)
Depreciation, depletion & amortization	(0.1		)	0.3			(0.2		)	1.7			—			—			1.7
Non-cash cost of land and improved development	—			—			—			1.1			—			—			1.1
Other (b)	—			—			—			—			—			(1.1		)	(1.1		)
Three Months Ended June 30, 2019		$14.7			($3.8	)		$12.8			$15.5			($0.2	)		($7.6	)		$31.4

(a)    Net of currency hedging impact.

(b)    Includes legal expenses of $1.1 million.

45

Operating Income	Southern Timber			Pacific Northwest Timber			New Zealand Timber			Real Estate			Trading			Corporate and Other			Total
Six Months Ended June 30, 2018		$27.9			$10.3			$33.7			$46.9			$0.4			($10.5	)		$108.7
Volume	1.4			(4.6		)	(0.2		)	(33.7		)	—			—			(37.1		)
Price	3.0			(12.1		)	(3.5		)	11.5			—			—			(1.1		)
Cost	1.2			(1.2		)	—			(1.0		)	(0.1		)	(0.9		)	(2.0		)
Non-timber income	3.0			(0.5		)	0.6			—			—			—			3.1
Foreign exchange (a)	—			—			(1.4		)	—			—			—			(1.4		)
Depreciation, depletion & amortization	(0.2		)	0.5			(0.7		)	1.9			—			—			1.5
Non-cash cost of land and improved development	—			—			—			(0.1		)	—			—			(0.1		)
Other (b)	—			—			—			—			—			(1.7		)	(1.7		)
Six Months Ended June 30, 2019		$36.3			($7.6	)		$28.5			$25.5			$0.3			($13.1	)		$69.9

(a)    Net of currency hedging impact.

(b)     Includes legal expenses of $1.1 million and the sale of unused Internet Protocol addresses of $0.6 million in the prior year period.

Adjusted EBITDA (a)	Southern Timber			Pacific Northwest Timber			New Zealand Timber			Real Estate			Trading			Corporate and Other			Total
Three Months Ended June 30, 2018		$30.6			$15.0			$25.8			$45.9			$0.2			($6.2	)		$111.3
Volume	(4.1		)	(5.7		)	(2.2		)	(39.3		)	—			—			(51.3		)
Price	1.3			(6.0		)	(2.6		)	12.2			—			—			4.9
Cost	1.3			(1.0		)	0.3			(0.5		)	(0.4		)	—			(0.3		)
Non-timber income	(1.5		)	(0.1		)	0.4			—			—			—			(1.2		)
Foreign exchange (b)	—			—			(1.7		)	—			—			—			(1.7		)
Other (c)	—			—			—			—			—			(1.1		)	(1.1		)
Three Months Ended June 30, 2019		$27.6			$2.2			$20.0			$18.3			($0.2	)		($7.3	)		$60.6

(a) Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators below.

(b) Net of currency hedging impact.

(c) Includes legal expenses of $1.1 million.

Adjusted EBITDA (a)	Southern Timber		Pacific Northwest Timber			New Zealand Timber			Real Estate			Trading			Corporate and Other			Total
Six Months Ended June 30, 2018		$58.8		$29.2			$47.5			$78.7			$0.4			($9.9	)		$204.6
Volume	2.9		(10.1		)	(0.3		)	(53.5		)	—			—			(61.0		)
Price	3.0		(12.1		)	(3.5		)	11.5			—			—			(1.1		)
Cost	1.2		(1.2		)	—			(1.0		)	(0.1		)	(0.9		)	(2.0		)
Non-timber income	3.0		(0.5		)	0.6			—			—			—			3.1
Foreign exchange (b)	—		—			(2.3		)	—			—			—			(2.3		)
Other (c)	—		—			—			—			—			(1.7		)	(1.7		)
Six Months Ended June 30, 2019		$68.9		$5.3			$42.0			$35.7			$0.3			($12.5	)		$139.7

(a) Adjusted EBITDA is a non-GAAP measure defined and reconciled in Performance and Liquidity Indicators below.

(b) Net of currency hedging impact.

(c) Includes legal expenses of $1.1 million and the sale of unused Internet Protocol addresses of $0.6 million in the prior year period.

46

SOUTHERN TIMBER

Second quarter sales of $46.2 million decreased $1.8 million, or 4%, versus the prior year period. Harvest volumes decreased 14% to 1.27 million tons versus 1.49 million tons in the prior year period, largely driven by accelerated stumpage removals in the first quarter of the year. Average pine sawtimber stumpage prices decreased 2% to $25.82 per ton versus $26.23 per ton in the prior year period due to geographic mix, as an increased proportion of volume was harvested from lower priced regions. Average pine pulpwood stumpage prices increased 7% to $17.16 per ton versus $16.05 per ton in the prior year period, driven primarily by strong pricing on sales committed during wet weather conditions in the first quarter. Overall, weighted-average stumpage prices (including hardwood) increased 5% to $20.29 per ton versus $19.27 per ton in the prior year period. Operating income of $14.7 million decreased $1.0 million versus the prior year period as a result of lower volumes ($2.0 million), lower non-timber income ($1.5 million) and higher depletion rates ($0.1 million), partially offset by higher net stumpage prices ($1.3 million) and lower overhead and other expenses ($1.3 million). Second quarter Adjusted EBITDA of $27.6 million was $3.0 million below the prior year period.

Year-to-date sales of $107.0 million increased $15.4 million, or 17%, versus the prior year period. Harvest volumes increased 5% to 3.21 million tons versus 3.06 million tons in the prior year period, primarily due to a consistent demand for fiber as wet ground conditions constrained supply. Average pine sawtimber stumpage prices were relatively flat at $26.16 per ton versus $26.27 per ton in the prior year period, whereas average pine pulpwood stumpage prices increased 6% to $17.63 per ton versus $16.59 per ton in the prior year period, driven primarily by strong pricing on sales committed during the first quarter’s wet weather. Overall, weighted average stumpage prices (including hardwood) increased 5% to $20.74 per ton versus $19.80 per ton in the prior year period. Operating income of $36.3 million increased $8.4 million versus the prior year period as a result of higher volumes ($1.4 million), higher net stumpage prices ($3.0 million), lower overhead and other expenses ($1.0 million) and higher non-timber income ($3.0 million). Year-to-date Adjusted EBITDA of $68.9 million was $10.1 million above the prior year period.

PACIFIC NORTHWEST TIMBER

Second quarter sales of $18.6 million decreased $13.6 million, or 42%, versus the prior year period. Harvest volumes decreased 33% to 250,000 tons versus 374,000 tons in the prior year period, as we deferred harvest in response to soft market conditions. Average delivered sawtimber prices decreased 24% to $78.35 per ton versus $103.38 per ton in the prior year period, while average delivered pulpwood prices decreased 15% to $42.26 per ton versus $49.76 per ton in the prior year period. The decrease in delivered sawtimber prices was driven by uncertainty in the export market resulting from the ongoing trade dispute between the U.S. and China as well as weaker U.S. lumber markets. The decrease in delivered pulpwood prices was driven primarily by excess supply in the market due to reduced chip exports to Asia. Operating loss of $3.8 million versus operating income of $5.6 million in the prior year period was primarily due to lower net stumpage prices ($6.0 million), lower volumes ($2.6 million), higher road maintenance and engineering costs ($1.0 million) and lower non-timber income ($0.1 million), partially offset by lower depletion rates ($0.3 million). Second quarter Adjusted EBITDA of $2.2 million was $12.8 million below the prior year period.

Year-to-date sales of $39.1 million decreased $24.5 million, or 39%, versus the prior year period. Harvest volumes decreased 29% to 533,000 tons, versus 753,000 tons in the prior year period, as we deferred harvest in response to soft market conditions. Average delivered sawtimber prices decreased 21% to $78.41 per ton from $99.24 per ton in the prior year period, and average delivered pulpwood prices decreased 8% to $43.81 per ton from $47.49 per ton in the prior year period. The decrease in delivered sawtimber prices was driven by uncertainty in the export market resulting from the ongoing trade dispute between the U.S. and China as well as weaker U.S. lumber markets. The decrease in delivered pulpwood prices was driven primarily by excess supply in the market due to reduced chip exports to Asia. Operating loss of $7.6 million versus operating income of $10.3 million in the prior year period was primarily due to lower net stumpage prices ($12.1 million), lower volumes ($4.6 million), higher overhead and other costs ($1.2 million), and lower non-timber income ($0.5 million), partially offset by lower depletion rates ($0.5 million). Year-to-date Adjusted EBITDA of $5.3 million was $23.9 million below the prior year period.

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NEW ZEALAND TIMBER

Second quarter sales of $62.1 million decreased $7.6 million, or 11%, versus the prior year period. Harvest volumes decreased 7% to 684,000 tons versus 738,000 tons in the prior year period primarily due to favorable timing of export shipments in the prior year period. Average delivered prices for export sawtimber decreased 7% to $111.81 per ton versus $120.80 per ton in the prior year period, while average delivered prices for domestic sawtimber decreased 4% to $82.66 per ton versus $86.21 per ton in the prior year period. The decrease in export sawtimber prices was primarily due to increased competition from lower-cost lumber imports into China and higher log inventories at China ports. The decrease in domestic sawtimber prices (in U.S. dollar terms) was driven primarily by the fall in the NZ$/US$ exchange rate (US$0.67 per NZ$1.00 versus US$0.71 per NZ$1.00). Excluding the impact of foreign exchange rates, domestic sawtimber prices increased 2% versus the prior year period. Operating income of $12.8 million decreased $5.0 million versus the prior year period as a result of lower net stumpage prices ($2.6 million), lower volumes ($1.7 million), higher depletion rates ($0.2 million), and unfavorable foreign exchange impacts ($1.2 million), partially offset by lower road maintenance costs ($0.3 million) and higher non-timber income ($0.4 million). Second quarter Adjusted EBITDA of $20.0 million was $5.8 million below the prior year period.

Year-to-date sales of $119.3 million decreased $3.3 million, or 3%, versus the prior year. Harvest volumes were flat at 1.29 million tons versus 1.30 million tons in the prior year. Average delivered prices for export sawtimber decreased 5% to $113.78 per ton versus $119.51 per ton in the prior year, while averaged delivered prices for domestic sawtimber decreased 4% to $83.03 per ton versus $86.57 per ton in the prior year. The decrease in export sawtimber prices was primarily due to increased competition from lower-cost lumber imports into China and higher log inventories at China ports. The decrease in the domestic sawtimber prices (in US dollar terms) was driven primarily by the fall in the NZ$/US$ exchange rate (US$0.67 per NZ$1.00 versus US$0.72 per NZ$1.00). Excluding the impact of foreign exchange rates, domestic sawtimber prices increased 2% versus the prior year period. Operating income of $28.5 million decreased $5.2 million versus the prior year period as a result of lower net stumpage prices ($3.5 million), unfavorable foreign exchange rate ($1.4 million), higher depletion rates ($0.7 million) and lower volumes ($0.2 million), partially offset by higher non-timber revenue ($0.6 million). Year-to-date Adjusted EBITDA of $42.0 million was $5.5 million below the prior year period.

REAL ESTATE

Second quarter sales of $22.5 million decreased $27.4 million versus the prior year period, while operating income of $15.5 million decreased $3.4 million versus the prior year period due to a lower number of acres sold (3,265 acres sold versus 15,804 acres sold in the prior year period), partially offset by a significant increase in weighted-average prices ($6,899 per acre versus $3,153 per acre in the prior year period).

Improved Development sales of $0.2 million in the Wildlight development project consisted of six residential lots for townhomes ($28,750 per lot or $198,000 per acre). This compares to prior year period sales of $1.3 million, which consisted of 2.0 acres of commercial property for $0.7 million ($351,000 per acre) and 12 residential lots for $0.6 million ($52,000 per lot or $287,000 per acre).

Unimproved Development sales of $14.4 million consisted of a 784 acre sale in St. Johns County, Florida for $18,402 per acre. This compares to no Unimproved Development sales in the prior year period.

Rural sales of $6.8 million consisted of 1,717 acres at an average price of $3,959 per acre. This compares to prior year period sales of $4.8 million, which consisted of 1,071 acres at an average price of $4,509 per acre.

Non-strategic / Timberland sales of $1.1 million consisted of 763 acres at an average price of $1,472 per acre. This compares to prior year period sales of $43.7 million, which consisted of 14,729 acres at an average price of $2,966 per acre, including a sale of 14,447 acres in Louisiana for $2,988 per acre. Second quarter Adjusted EBITDA of $18.3 million was $27.6 million below the prior year period.

Year-to-date sales of $43.5 million decreased $42.5 million versus the prior year period, while operating income of $25.5 million decreased $21.4 million versus the prior year period. Sales and operating income decreased in the first six months due primarily to a lower number of acres sold (8,944 acres sold versus 24,029 acres sold in the prior year period), partially offset by higher weighted-average prices ($4,860 per acre versus $3,575 per acre). Year-to-date Adjusted EBITDA of $35.7 million decreased $43.0 million versus the prior year.

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TRADING

Second quarter sales of $35.5 million decreased $10.7 million versus the prior year period primarily due to lower volumes and prices. Sales volumes decreased 18% to 325,000 tons versus 395,000 tons in the prior year period. Operating loss of $0.2 million versus operating income of $0.2 million in the prior year period was due to lower trading margins resulting from lower volumes and prices.

Year-to-date sales of $67.5 million decreased $17.8 million versus the prior year period primarily due to lower volumes. Sales volumes decreased 18% to 606,000 tons versus 736,000 tons in the the prior year period. Operating income and Adjusted EBITDA of $0.3 million decreased $0.1 million versus the prior year period.

OTHER ITEMS

CORPORATE AND OTHER EXPENSE / ELIMINATIONS

Second quarter corporate and other operating expenses of $7.6 million increased $1.1 million versus the prior year period, primarily due to elevated legal expenses.

Year-to-date corporate and other operating expenses of $13.1 million increased $2.6 million versus the prior year period due to elevated legal expenses ($2.0 million) and the prior year income from the sale of unused Internet Protocol addresses ($0.6 million).

INTEREST EXPENSE

Second quarter interest expense of $7.9 million decreased $0.2 million versus the prior year period.

Year-to-date interest expense of $15.6 million decreased $0.5 million versus the prior year period due to lower average outstanding debt versus the prior year period.

INTEREST AND MISCELLANEOUS INCOME, NET

Second quarter and year-to-date non-operating income of $1.0 million and $2.4 million, respectively, includes interest income and favorable mark-to-market adjustments on carbon options.

INCOME TAX EXPENSE

Second quarter and year-to-date income tax expense of $3.6 million and $8.0 million decreased $3.5 million and $6.1 million, respectively, versus the prior year period as a result of lower taxable income. The New Zealand subsidiary is the primary driver of income tax expense.

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OUTLOOK

The ongoing U.S.-China trade dispute and its corresponding effects have continued to negatively impact our timber segments. With no clear resolution in sight, we have tempered our expectations for the balance of the year. As a result, we now anticipate full-year net income attributable to Rayonier of $54 to $63 million, EPS of $0.42 to $0.49 and Adjusted EBITDA of $245 million to $265 million. In our Southern Timber segment, we expect to achieve our prior full-year volume guidance of 6.2 to 6.3 million tons with higher Adjusted EBITDA driven primarily by strong non-timber income. In our Pacific Northwest Timber segment, we now expect full-year harvest volumes of approximately 1.2 million tons, as we have deferred planned harvest in response to weak market conditions. Given the current status of the U.S.-China trade dispute, we expect limited upside to current prices through the remainder of 2019. In our New Zealand Timber segment, we are maintaining our full-year volume guidance of 2.7 to 2.8 million tons, although we expect that near-term weakness in the China export market coupled with continued competition from alternative supply sources will weigh on pricing in the second half of the year. In our Real Estate segment, we are on track to achieve full-year Adjusted EBITDA generally in line with our prior guidance, although we expect that second half transaction activity will be concentrated in the fourth quarter.

ADJUSTED EBITDA GUIDANCE (a):
	Revised Full-Year Guidance							Year-to-Date Results
Net Income to Adjusted EBITDA Reconciliation
Net income		$61.5		-		$71.5			$48.7
Less: Net income attributable to noncontrolling interest	(7.5		)	-	(8.5		)	(5.2		)
Net income attributable to Rayonier Inc.		$54.0		-		$63.0			$43.5
Interest, net	29.5			-	30.5			13.8
Income tax expense	12.0			-	13.5			8.0
Depreciation, depletion and amortization	130.0			-	135.5			64.1
Non-cash cost of land and improved development	12.0			-	14.0			5.6
Non-operating income	—				—			(0.6		)
Net income attributable to noncontrolling interest	7.5			-	8.5			5.2
Adjusted EBITDA		$245.0		-		$265.0			$139.7
Diluted Earnings per Share		$0.42		-		$0.49			$0.34

(a) Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, depletion, amortization, the non-cash cost of land and improved development, non-operating income and expense and Large Dispositions. Adjusted EBITDA is a non-GAAP measure that management uses to make strategic decisions about the business and that investors can use to evaluate the operational performance of the assets under management. It removes the impact of specific items that management believes do not directly reflect the core business operations on an ongoing basis. Large Dispositions, which are excluded in the calculation of Adjusted EBITDA, are defined as transactions involving the sale of timberland that exceed $20 million in size and do not have a demonstrable premium relative to timberland value.

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LIQUIDITY AND CAPITAL RESOURCES

Our principal source of cash is cash flow from operations, primarily the harvesting of timber and sales of real estate. As a REIT, our main use of cash is dividends. We also use cash to maintain the productivity of our timberlands through replanting and silviculture. Our operations have generally produced consistent cash flow and required limited capital resources. Short-term borrowings have helped fund working capital needs while acquisitions of timberlands generally require funding from external sources or Large Dispositions.

SUMMARY OF LIQUIDITY AND FINANCING COMMITMENTS

	June 30,			December 31,
(millions of dollars)	2019			2018
Cash and cash equivalents		$131.0			$148.4
Total debt (a)	975.0			975.0
Shareholders’ equity	1,600.3			1,654.6
Total capitalization (total debt plus equity)	2,575.3			2,629.6
Debt to capital ratio	38		%	37		%
Net debt to enterprise value (b)(c)	18		%	19		%

(a) Total debt as of June 30, 2019 and December 31, 2018 is presented gross of deferred financing costs of $2.2 million and $2.4 million, respectively.

(b) Net debt is calculated as total debt less cash and cash equivalents.

(c) Enterprise value is calculated as the number of shares outstanding multiplied by the Company’s share price plus net debt as of June 30, 2019 and December 31, 2018.

CASH FLOWS

The following table summarizes our cash flows from operating, investing and financing activities for the six months ended June 30, 2019 and 2018.

(millions of dollars)	2019			2018
Cash provided by (used for):
Operating activities		$117.0			$181.6
Investing activities	(60.8		)	(61.5		)
Financing activities	(78.0		)	(115.6		)

CASH PROVIDED BY OPERATING ACTIVITIES

Cash provided by operating activities decreased $64.6 million primarily due to lower operating results.

CASH USED FOR INVESTING ACTIVITIES

Cash used for investing activities decreased $0.7 million versus the prior year period primarily due to a decrease in timberland acquisitions ($4.8 million) and real estate development investments ($3.5 million), partially offset by higher capital expenditures ($3.6 million) and other investing activities ($4.0 million).

CASH USED FOR FINANCING ACTIVITIES

Cash used for financing activities decreased $37.5 million from the prior year period primarily due to a decrease in net debt repayments ($53.4 million), partially offset by a decrease in equity issuances ($7.0 million) and increases in dividends paid ($4.1 million), shares repurchased ($1.2 million) and minority shareholder distributions ($3.6 million).

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EXPECTED 2019 EXPENDITURES

Capital expenditures in 2019 are expected to be between $66 million and $69 million, excluding any strategic timberland acquisitions we may make. Capital expenditures are expected to primarily consist of seedling planting, fertilization and other silvicultural activities, property taxes, lease payments, allocated overhead and other capitalized costs. Aside from capital expenditures, we may also acquire timberland as we actively evaluate acquisition opportunities.

Real estate development investments in 2019 are expected to be between $7 million and $9 million, net of reimbursements from community development bonds. Expected real estate development investments are primarily related to Wildlight, our mixed-use community development project located north of Jacksonville, Florida at the interchange of I-95 and State Road A1A.

Our 2019 dividend payments are expected to be approximately $140 million assuming no change in the quarterly dividend rate of $0.27 per share or material changes in the number of shares outstanding.

Future share repurchases, if any, will depend on the Company’s liquidity and cash flow, as well as general market conditions and other considerations including capital allocation priorities.

We have paid $0.4 million of the approximately $1.3 million in current year mandatory pension contribution requirements and may make discretionary contributions in the future.

Cash tax payments in 2019 are expected to be approximately $2 million, primarily related to the New Zealand subsidiary.

PERFORMANCE AND LIQUIDITY INDICATORS

The discussion below is presented to enhance the reader’s understanding of our operating performance, liquidity, and ability to generate cash and satisfy rating agency and creditor requirements. This information includes two measures of financial results: Adjusted Earnings before Interest, Taxes, Depreciation, Depletion and Amortization (“Adjusted EBITDA”) and Cash Available for Distribution (“CAD”). These measures are not defined by Generally Accepted Accounting Principles (“GAAP”), and the discussion of Adjusted EBITDA and CAD is not intended to conflict with or change any of the GAAP disclosures described above.

Management uses CAD as a liquidity measure. CAD is a non-GAAP measure that management uses to measure cash generated during a period that is available for common stock dividends, distributions to the New Zealand minority shareholder, repurchase of the Company’s common shares, debt reduction, strategic acquisitions and real estate development investments. We define CAD as cash provided by operating activities adjusted for capital spending (excluding timberland acquisitions) and working capital and other balance sheet changes. CAD is not necessarily indicative of the CAD that may be generated in future periods.

Management uses Adjusted EBITDA as a performance measure. Adjusted EBITDA is a non-GAAP measure that management uses to make strategic decisions about the business and that investors can use to evaluate the operational performance of the assets under management. It removes the impact of specific items that management believes do not directly reflect the core business operations on an ongoing basis. We define Adjusted EBITDA as earnings before interest, taxes, depreciation, depletion, amortization, the non-cash cost of land and improved development, non-operating income and expense and Large Dispositions.

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We reconcile Adjusted EBITDA to Net Income for the consolidated Company and to Operating Income for the segments, as those are the most comparable GAAP measures for each. The following table provides a reconciliation of Net Income to Adjusted EBITDA for the respective periods (in millions of dollars):

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Net Income to Adjusted EBITDA Reconciliation
Net income		$20.9			$39.3			$48.7			$82.0
Interest, net	7.1			7.6			13.8			15.3
Income tax expense	3.6			7.1			8.0			14.0
Depreciation, depletion and amortization	27.6			46.4			64.1			80.9
Non-cash cost of land and improved development	1.6			13.3			5.6			14.9
Non-operating income	(0.3		)	(2.5		)	(0.6		)	(2.7		)
Adjusted EBITDA		$60.6			$111.3			$139.7			$204.6

The following tables provide a reconciliation of Operating Income (Loss) by segment to Adjusted EBITDA by segment for the respective periods (in millions of dollars):

Three Months Ended	Southern Timber		Pacific Northwest Timber			New Zealand Timber		Real Estate		Trading			Corporate and other			Total
June 30, 2019
Operating income (loss)		$14.7		($3.8	)		$12.8		$15.5		($0.2	)		($7.6	)		$31.4
Depreciation, depletion and amortization	12.9		6.0			7.2		1.2		—			0.3			27.6
Non-cash cost of land and improved development	—		—			—		1.6		—			—			1.6
Adjusted EBITDA		$27.6		$2.2			$20.0		$18.3		($0.2	)		($7.3	)		$60.6
June 30, 2018
Operating income (loss)		$15.7		$5.6			$17.8		$18.9		$0.2			($6.5	)		$51.6
Depreciation, depletion and amortization	14.9		9.4			8.0		13.7		—			0.3			46.4
Non-cash cost of land and improved development	—		—			—		13.3		—			—			13.3
Adjusted EBITDA		$30.6		$15.0			$25.8		$45.9		$0.2			($6.2	)		$111.3

Six Months Ended	Southern Timber		Pacific Northwest Timber			New Zealand Timber		Real Estate		Trading		Corporate and other			Total
June 30, 2019
Operating income (loss)		$36.3		($7.6	)		$28.5		$25.5		$0.3		($13.1	)		$69.9
Depreciation, depletion and amortization	32.6		12.9			13.5		4.5		—		0.6			64.1
Non-cash cost of land and improved development	—		—			—		5.6		—		—			5.6
Adjusted EBITDA		$68.9		$5.3			$42.0		$35.7		$0.3		($12.5	)		$139.7
June 30, 2018
Operating income (loss)		$27.9		$10.3			$33.7		$46.9		$0.4		($10.5	)		$108.7
Depreciation, depletion and amortization	30.9		18.9			13.7		16.8		—		0.6			80.9
Non-cash cost of land and improved development	—		—			—		14.9		—		—			14.9
Adjusted EBITDA		$58.8		$29.2			$47.5		$78.7		$0.4		($9.9	)		$204.6

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The following table provides a reconciliation of Cash Provided by Operating Activities to Adjusted CAD (in millions of dollars):

	Six Months Ended June 30,
	2019			2018
Cash provided by operating activities		$117.0			$181.6
Capital expenditures (a)	(29.5		)	(25.9		)
Working capital and other balance sheet changes	7.6			7.8
CAD	95.1			163.5
Mandatory debt repayments	—			—
CAD after mandatory debt repayments	95.1			163.5

Cash used for investing activities	($60.8	)	($61.5	)
Cash used for financing activities	($78.0	)	($115.6	)

(a) Capital expenditures exclude timberland acquisitions.

The following table provides supplemental cash flow data (in millions):

	Six Months Ended June 30,
	2019			2018
Purchase of timberlands		($26.4	)	(31.2	)
Real Estate Development Investments (a)	(1.0		)	(4.5	)
Distributions to New Zealand minority shareholder (b)	(3.6		)	(3.4	)

(a) The six months ended June 30, 2019 includes $3.7 million of reimbursements from community development bonds.

(b) 2018 amount includes debt repayments on the New Zealand subsidiary noncontrolling interest shareholder loan.

LIQUIDITY FACILITIES

2019 DEBT ACTIVITY

See Note 6 — Debt for additional information.

OFF-BALANCE SHEET ARRANGEMENTS

We utilize off-balance sheet arrangements to provide credit support for certain suppliers and vendors in case of their default on critical obligations, and collateral for outstanding claims under the Company’s previous workers’ compensation self-insurance programs. These arrangements consist of standby letters of credit and surety bonds. As part of our ongoing operations, we also periodically issue guarantees to third parties. Off-balance sheet arrangements are not considered a source of liquidity or capital resources and do not expose us to material risks or material unfavorable financial impacts. See Note 11 — Guarantees for details on the letters of credit, surety bonds and guarantees as of June 30, 2019.

CONTRACTUAL FINANCIAL OBLIGATIONS

In addition to using cash flow from operations and proceeds from Large Dispositions, we finance our operations through the issuance of debt and by entering into leases. These financial obligations are recorded in accordance with accounting rules applicable to the underlying transaction, with the result that some are recorded as liabilities on the Consolidated Balance Sheets, while others are required to be disclosed in the Notes to Consolidated Financial Statements and Management’s Discussion and Analysis.

The following table aggregates our contractual financial obligations as of June 30, 2019 and anticipated cash spending by period: 

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Contractual Financial Obligations (in millions)	Total		Payments Due by Period
			Remaining 2019		2020-2021		2022-2023		Thereafter
Long-term debt (a)		$975.0	—		—			$325.0		$650.0
Interest payments on long-term debt (b)	197.6		19.7		78.8		60.5		38.6
Operating leases — timberland (c)	194.5		5.0		16.7		15.6		157.2
Operating leases — PP&E, offices (c)	7.9		0.9		2.5		1.6		2.9
Commitments — derivatives (d)	1.2		1.0		0.2		—		—
Commitments — other (e)	4.0		3.0		1.0		—		—
Total contractual cash obligations		$1,380.2		$29.6		$99.2		$402.7		$848.7

(a) The book value of long-term debt, net of deferred financing costs, is currently recorded at $972.8 million on the Company’s Consolidated Balance Sheet, but upon maturity the liability will be $975.0 million.

(b) Projected interest payments for variable rate debt were calculated based on outstanding principal amounts and interest rates as of June 30, 2019.

(c) Includes anticipated renewal options.

(d) Commitments — derivatives represents payments expected to be made on derivative financial instruments (foreign exchange contracts and interest rate swaps). See Note 13 — Derivative Financial Instruments and Hedging Activities.

(e) Commitments — other includes $0.9 million of pension contribution requirements remaining in 2019 based on actuarially determined estimates and IRS minimum funding requirements, payments expected to be made on the Company’s Wildlight development project, payments made on timberland deeds and other purchase obligations.

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Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to various market risks, including changes in interest rates, commodity prices and foreign exchange rates. Our objective is to minimize the economic impact of these market risks. We use derivatives in accordance with policies and procedures approved by the Audit Committee of the Board of Directors. Derivatives are managed by a senior executive committee whose responsibilities include initiating, managing and monitoring resulting exposures. We do not enter into financial instruments for trading or speculative purposes.

Interest Rate Risk

We are exposed to interest rate risk through our variable rate debt, primarily due to changes in LIBOR. However, we use interest rate swaps to manage our exposure to interest rate movements on our term credit agreements by swapping existing and anticipated future borrowings from floating rates to fixed rates. As of June 30, 2019, we had $650 million of U.S. long-term variable rate debt. The notional amount of outstanding interest rate swap contracts with respect to this debt at June 30, 2019 was also $650 million. The term credit agreement and associated interest rate swaps mature in August 2024 and the incremental term loan agreement and associated interest rate swaps mature in May 2026. At this borrowing level, a hypothetical one-percentage point increase/decrease in interest rates would result in no corresponding increase/decrease in interest payments and expense over a 12-month period.

The fair market value of our long-term fixed interest rate debt is also subject to interest rate risk. The estimated fair value of our long-term fixed rate debt at June 30, 2019 was $332 million compared to the $325 million principal amount. We use interest rates of debt with similar terms and maturities to estimate the fair value of our debt. Generally, the fair market value of fixed-rate debt will increase as interest rates fall and decrease as interest rates rise. A hypothetical one-percentage point increase/decrease in prevailing interest rates at June 30, 2019 would result in a corresponding decrease/increase in the fair value of our long-term fixed rate debt of approximately $9 million.

We estimate the periodic effective interest rate on our U.S. long-term fixed and variable rate debt to be approximately 3.3% after consideration of interest rate swaps and estimated patronage refunds, excluding unused commitment fees on the revolving credit facility.

The following table summarizes our outstanding debt, interest rate swaps and average interest rates, by year of expected maturity and their fair values at June 30, 2019:

(Dollars in thousands)	2019	2020	2021	2022	2023	Thereafter	Total	Fair Value
Variable rate debt:
Principal amounts	—	—	—	—	—	$650,000	$650,000	$650,000
Average interest rate (a)(b)	—	—	—	—	—	4.19%	4.19%	—
Fixed rate debt:
Principal amounts	—	—	—	$325,000	—	—	$325,000	$331,500
Average interest rate (b)	—	—	—	3.75%	—	—	3.75%	—
Interest rate swaps:
Notional amount	—	—	—	—	—	$650,000	$650,000	($7,097)
Average pay rate (b)	—	—	—	—	—	1.91%	1.91%	—
Average receive rate (b)	—	—	—	—	—	2.43%	2.43%	—

(a)    Excludes estimated patronage refunds.

(b)    Interest rates as of June 30, 2019.

Foreign Currency Exchange Rate Risk

The functional currency of the Company’s New Zealand-based operations and New Zealand subsidiary is the New Zealand dollar. Through these operations and our ownership in the New Zealand subsidiary, we are exposed to foreign currency risk on cash held in foreign currencies, shareholder distributions which are paid in U.S. dollars and on foreign export sales and ocean freight payments that are predominantly denominated in U.S. dollars. To mitigate these risks, the New Zealand subsidiary routinely enters into foreign currency exchange contracts and foreign currency option contracts to hedge a portion of the New Zealand subsidiary’s foreign exchange exposure.

56

Sales and Expense Exposure

At June 30, 2019, the New Zealand subsidiary had foreign currency exchange contracts with a notional amount of $101 million and foreign currency option contracts with a notional amount of $20 million outstanding related to foreign export sales and ocean freight payments. The amount hedged represents a portion of forecasted U.S. dollar denominated export timber and log trading sales proceeds over the next 18 months and next 3 months, respectively.

The following table summarizes our outstanding foreign currency exchange rate risk contracts at June 30, 2019:

(Dollars in thousands)	0-1 months	1-2 months	2-3 months	3-6 months	6-12 months	12-18 months	Total	Fair Value
Foreign exchange contracts to sell U.S. dollar for New Zealand dollar
Notional amount	$12,750	$12,750	$8,000	$21,000	$27,000	$19,000	$100,500	($670)
Average contract rate	1.4889	1.4881	1.4874	1.4861	1.4838	1.4827	1.4855
Foreign currency option contracts to sell U.S. dollar for New Zealand dollar
Notional amount	$2,000	—	$2,000	$6,000	$6,000	$4,000	$20,000	$116
Average strike price	1.4739	—	1.5316	1.5375	1.5123	1.5246	1.5204

Item 4. CONTROLS AND PROCEDURES

DISCLOSURE CONTROLS AND PROCEDURES

Rayonier management is responsible for establishing and maintaining adequate disclosure controls and procedures. Disclosure controls and procedures (as defined in Rule 13a-15(e)) under the Securities Exchange Act of 1934 (the “Exchange Act”), are designed with the objective of ensuring information required to be disclosed by the Company in reports filed under the Exchange Act, such as this quarterly report on Form 10-Q, is (1) recorded, processed, summarized and reported or submitted within the time periods specified in the SEC’s rules and forms and (2) accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

Because of the inherent limitations in all control systems, no control evaluation can provide absolute assurance that all control exceptions and instances of fraud have been prevented or detected on a timely basis. Even systems determined to be effective can provide only reasonable assurance that their objectives are achieved.

Based on an evaluation of our disclosure controls and procedures as of the end of the period covered by this quarterly report on Form 10-Q, our management, including the Chief Executive Officer and Chief Financial Officer, concluded the design and operation of the disclosure controls and procedures were effective as of June 30, 2019.

In the quarter ended June 30, 2019, based upon the evaluation required by Rule 13a-15(d) under the Exchange Act, there were no changes in our internal control over financial reporting that would materially affect or are reasonably likely to materially affect our internal control over financial reporting.

57

PART II.    OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

The information set forth in Note 10 — Contingencies in the “Notes to Consolidated Financial Statements” under Item 1 of Part I of this report is incorporated herein by reference. 

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

ISSUER PURCHASES OF EQUITY SECURITIES

The following table provides information regarding our purchases of Rayonier common shares during the quarter ended June 30, 2019:

Period	Total Number of Shares Purchased (a)	Average Price Paid per Share	Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (b)
April 1 to April 30	100,473	31.94	—	7,154,960
May 1 to May 31	222	28.35	—	7,154,960
June 1 to June 30	33,499	30.05	—	7,154,960
Total	134,194		—

(a) Includes 134,194 shares of the Company’s common shares purchased in April, May and June from current employees in non-open market transactions. The shares were sold by current employees of the Company in exchange for cash that was used to pay withholding taxes associated with the vesting of share-based awards under the Company’s stock incentive plan. The price per share surrendered is based on the closing price of the Company’s common shares on the respective vesting dates of the awards.

(b) Maximum number of shares authorized to be purchased as of June 30, 2019 include 3,877,389 under the 1996 anti-dilutive program and approximately 3,277,571 under the share repurchase program.

58

Item 6. EXHIBITS

31.1	Chief Executive Officer’s Certification Pursuant to Rule 13a-14(a)/15d-14(a) and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith
31.2	Chief Financial Officer’s Certification Pursuant to Rule 13a-14(a)/15d-14(a) and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002	Filed herewith
32	Certification of Periodic Financial Reports Under Section 906 of the Sarbanes-Oxley Act of 2002	Furnished herewith
101	The following financial information from our Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2019, formatted in Extensible Business Reporting Language (“XBRL”), includes: (i) the Consolidated Statements of Income and Comprehensive Income for the Three and Six Months Ended June 30, 2019 and 2018; (ii) the Consolidated Balance Sheets as of June 30, 2019 and December 31, 2018; (iii) the Consolidated Statements of Changes in Shareholders’ Equity for the Six Months Ended June 30, 2019 and 2018; (iv) the Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2019 and 2018; and (v) the Notes to Consolidated Financial Statements	Filed herewith

59

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	RAYONIER INC.
	(Registrant)
By:	/s/ APRIL TICE
	April Tice Vice President, Financial Services and Corporate Controller (Duly Authorized Officer, Principal Accounting Officer)

Date: August 9, 2019

60

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, David L. Nunes, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Rayonier Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 9, 2019

/S/ DAVID L. NUNES

David L. Nunes

President and Chief Executive Officer, Rayonier Inc.

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Mark McHugh, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Rayonier Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rule 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: August 9, 2019

/s/ MARK MCHUGH

Mark McHugh

Senior Vice President and Chief Financial Officer, Rayonier Inc.

EX-32

EXHIBIT 32

CERTIFICATION

The undersigned hereby certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. Section 1350, that to our knowledge:

1. The quarterly report on Form 10-Q of Rayonier Inc. (the "Company") for the period ended June 30, 2019 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 9, 2019

/s/ DAVID L. NUNES	/s/ MARK MCHUGH
David L. Nunes	Mark McHugh
President and Chief Executive Officer, Rayonier Inc.	Senior Vice President and Chief Financial Officer, Rayonier Inc.

XML

Cover Page - shares	6 Months Ended
	Jun. 30, 2019	Aug. 02, 2019
Cover page.
Entity Registrant Name	RAYONIER INC.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2019
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Amendment Flag	false
Document Transition Report	false
Entity File Number	1-6780
Entity Incorporation, State or Country Code	NC
Entity Tax Identification Number	13-2607329
Entity Address, Address Line One	1 RAYONIER WAY
Entity Address, City or Town	WILDLIGHT
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	32097
City Area Code	904
Local Phone Number	357-9100
Title of 12(b) Security	COMMON SHARES, NO PAR VALUE
Trading Symbol	RYN
Entity Central Index key	0000052827
Current Fiscal year End Date	--12-31
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		129,630,052

XML

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
SALES (NOTE 2)	$ 184,800		$ 245,906		$ 376,346	$ 449,101
Costs and Expenses
Cost of sales	(140,454)		(184,418)		(283,705)	(322,906)
Selling and general expenses	(10,984)		(11,502)		(20,794)	(20,504)
Other operating (expense) income, net (Note 16)	(1,969)		1,659		(1,934)	3,029
Costs and Expenses, Total	(153,407)		(194,261)		(306,433)	(340,381)
OPERATING INCOME	31,393		51,645		69,913	108,720
Interest expense	(7,922)		(8,102)		(15,632)	(16,155)
Interest and other miscellaneous income, net	1,057		2,905		2,390	3,525
INCOME BEFORE INCOME TAXES	24,528		46,448		56,671	96,090
Income tax expense (Note 9)	(3,608)		(7,110)		(7,958)	(14,047)
NET INCOME	20,920	$ 27,793	39,338	$ 42,706	48,713	82,043
Less: Net income attributable to noncontrolling interest	(2,168)		(3,080)		(5,167)	(5,246)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	18,752		36,258		43,546	76,797
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment, net of income tax expense of $0, $0, $0 and $0	(5,604)	6,033	(29,760)	9,688	429	(20,072)
Cash flow hedges, net of income tax (benefit) expense of ($91), ($2,008), $244 and ($1,640)	(19,519)	(10,686)	529	16,615	(30,205)	17,143
Amortization of pension and postretirement plans, net of income tax expense of $0, $0, $0 and $0	(112)	$ (112)	(178)	$ (159)	(224)	(338)
Total other comprehensive (loss) income	(25,011)		(29,053)		(29,552)	(2,591)
COMPREHENSIVE (LOSS) INCOME	(4,091)		10,285		19,161	79,452
Less: Comprehensive (income) loss attributable to noncontrolling interest	(815)		5,011		(5,366)	528
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC.	$ (4,906)		$ 15,296		$ 13,795	$ 79,980
EARNINGS PER COMMON SHARE (NOTE 12)
Basic earnings per share attributable to Rayonier Inc. (in dollars per share)	$ 0.14		$ 0.28		$ 0.34	$ 0.60
Diluted earnings per share attributable to Rayonier Inc. (in dollars per share)	$ 0.14		$ 0.28		$ 0.34	$ 0.59

XML

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustment, tax expense	$ 0	$ 0	$ 0	$ 0
Cash flow hedges, income tax (expense) benefit	(91)	(2,008)	244	(1,640)
Amortization of pension and postretirement plans, tax expense	$ 0	$ 0	$ 0	$ 0

XML

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
CURRENT ASSETS
Cash and cash equivalents	$ 130,956	$ 148,374
Accounts receivable, less allowance for doubtful accounts of $8 and $8	44,931	26,151
Inventory (Note 17)	23,597	15,703
Prepaid expenses	20,581	17,016
Other current assets	690	609
Total current assets	220,755	207,853
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	2,392,389	2,401,327
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (NOTE 7)	77,072	85,609
PROPERTY, PLANT AND EQUIPMENT
Land	4,131	4,131
Buildings	22,432	22,503
Machinery and equipment	3,681	3,534
Construction in progress	589	567
Total property, plant and equipment, gross	30,833	30,735
Less — accumulated depreciation	(8,789)	(7,984)
Total property, plant and equipment, net	22,044	22,751
RESTRICTED CASH (NOTE 18)	3,754	8,080
RIGHT-OF-USE ASSETS (NOTE 3)	104,016	0
OTHER ASSETS	41,021	55,046
TOTAL ASSETS	2,861,051	2,780,666
CURRENT LIABILITIES
Accounts payable	24,944	18,019
Accrued taxes	5,935	3,178
Accrued payroll and benefits	5,451	10,416
Accrued interest	4,931	5,007
Deferred revenue	19,798	10,447
Other current liabilities	25,026	16,474
Total current liabilities	86,085	63,541
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS (NOTE 6)	972,848	972,567
PENSION AND OTHER POSTRETIREMENT BENEFITS (NOTE 15)	29,383	29,800
LONG-TERM LEASE LIABILITY (NOTE 3)	93,749	0
OTHER NON-CURRENT LIABILITIES	78,688	60,208
COMMITMENTS AND CONTINGENCIES (NOTES 8 and 10)
SHAREHOLDERS’ EQUITY
Common Shares, 480,000,000 shares authorized,129,629,716 and 129,488,675 shares issued and outstanding	884,618	884,263
Retained earnings	645,743	672,371
Accumulated other comprehensive (loss) income (Note 19)	(29,511)	239
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,500,850	1,556,873
Noncontrolling interest	99,448	97,677
TOTAL SHAREHOLDERS’ EQUITY	1,600,298	1,654,550
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 2,861,051	$ 2,780,666

XML

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Current Assets:
Allowance for doubtful accounts	$ 8	$ 8
Shareholders’ Equity:
Common shares, shares authorized (in shares)	480,000,000	480,000,000
Common shares, shares issued (in shares)	129,629,716	129,488,675
Common shares, shares outstanding (in shares)	129,629,716	129,488,675

XML

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Total	Common Shares	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Non-controlling Interest
Beginning balance (in shares) at Dec. 31, 2017		128,970,776
Beginning balance at Dec. 31, 2017	$ 1,692,940	$ 872,228	$ 707,378	$ 13,417	$ 99,917
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	42,706		40,539		2,167
Dividends ($0.27, $0.27, $0.25, and $0.27 per share, respectively)	(32,634)		(32,634)
Issuance of shares under incentive stock plans (in shares)		204,336
Issuance of shares under incentive stock plans	5,455	$ 5,455
Stock-based compensation	1,262	$ 1,262
Repurchase of common shares (in shares)		(811)
Repurchase of common shares	(18)	$ (18)
Amortization of pension and postretirement plan liabilities	159			159
Foreign currency translation adjustment	9,688			7,606	2,082
Cash flow hedges	16,615			16,381	234
Ending balance (in shares) at Mar. 31, 2018		129,174,301
Ending balance at Mar. 31, 2018	1,736,173	$ 878,927	715,283	37,563	104,400
Beginning balance (in shares) at Dec. 31, 2017		128,970,776
Beginning balance at Dec. 31, 2017	1,692,940	$ 872,228	707,378	13,417	99,917
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	82,043
Amortization of pension and postretirement plan liabilities	338
Foreign currency translation adjustment	(20,072)
Cash flow hedges	17,143
Ending balance (in shares) at Jun. 30, 2018		129,451,268
Ending balance at Jun. 30, 2018	1,712,877	$ 880,560	716,328	16,601	99,388
Beginning balance (in shares) at Mar. 31, 2018		129,174,301
Beginning balance at Mar. 31, 2018	1,736,173	$ 878,927	715,283	37,563	104,400
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	39,338		36,258		3,080
Dividends ($0.27, $0.27, $0.25, and $0.27 per share, respectively)	(35,213)		(35,213)
Issuance of shares under incentive stock plans (in shares)		357,139
Issuance of shares under incentive stock plans	2,369	$ 2,369
Stock-based compensation	2,212	$ 2,212
Repurchase of common shares (in shares)		(80,172)
Repurchase of common shares	(2,948)	$ (2,948)
Amortization of pension and postretirement plan liabilities	178			178
Foreign currency translation adjustment	(29,760)			(22,857)	(6,903)
Cash flow hedges	529			1,717	(1,189)
Ending balance (in shares) at Jun. 30, 2018		129,451,268
Ending balance at Jun. 30, 2018	1,712,877	$ 880,560	716,328	16,601	99,388
Beginning balance (in shares) at Dec. 31, 2018		129,488,675
Beginning balance at Dec. 31, 2018	1,654,550	$ 884,263	672,371	239	97,677
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	27,793		24,794		2,999
Dividends ($0.27, $0.27, $0.25, and $0.27 per share, respectively)	(35,049)		(35,049)
Issuance of shares under incentive stock plans (in shares)		26,031
Issuance of shares under incentive stock plans	597	$ 597
Stock-based compensation	1,477	$ 1,477
Repurchase of common shares (in shares)		(1,140)
Repurchase of common shares	(33)	$ (33)
Amortization of pension and postretirement plan liabilities	112			112
Foreign currency translation adjustment	6,033			4,680	1,353
Cash flow hedges	(10,686)			(10,884)	198
Distribution to minority shareholder	(3,594)				(3,594)
Ending balance (in shares) at Mar. 31, 2019		129,513,566
Ending balance at Mar. 31, 2019	1,641,200	$ 886,304	662,116	(5,853)	98,633
Beginning balance (in shares) at Dec. 31, 2018		129,488,675
Beginning balance at Dec. 31, 2018	1,654,550	$ 884,263	672,371	239	97,677
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	48,713
Amortization of pension and postretirement plan liabilities	224
Foreign currency translation adjustment	429
Cash flow hedges	(30,205)
Ending balance (in shares) at Jun. 30, 2019		129,629,716
Ending balance at Jun. 30, 2019	1,600,298	$ 884,618	645,743	(29,511)	99,448
Beginning balance (in shares) at Mar. 31, 2019		129,513,566
Beginning balance at Mar. 31, 2019	1,641,200	$ 886,304	662,116	(5,853)	98,633
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	20,920		18,752		2,168
Dividends ($0.27, $0.27, $0.25, and $0.27 per share, respectively)	(35,125)		(35,125)
Issuance of shares under incentive stock plans (in shares)		250,344
Issuance of shares under incentive stock plans	177	$ 177
Stock-based compensation	2,344	$ 2,344
Repurchase of common shares (in shares)		(134,194)
Repurchase of common shares	(4,207)	$ (4,207)
Amortization of pension and postretirement plan liabilities	112			112
Foreign currency translation adjustment	(5,604)			(4,305)	(1,299)
Cash flow hedges	(19,519)			(19,465)	(54)
Ending balance (in shares) at Jun. 30, 2019		129,629,716
Ending balance at Jun. 30, 2019	$ 1,600,298	$ 884,618	$ 645,743	$ (29,511)	$ 99,448

XML

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018
Statement of Stockholders' Equity [Abstract]
Dividends declared (in dollars per share)	$ 0.27	$ 0.27	$ 0.27	$ 0.25

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands		6 Months Ended
		Jun. 30, 2019	Jun. 30, 2018
OPERATING ACTIVITIES
Net income		$ 48,713	$ 82,043
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation, depletion and amortization		64,093	80,920
Non-cash cost of land and improved development		5,647	14,936
Stock-based incentive compensation expense		3,821	3,474
Deferred income taxes		7,257	13,653
Amortization of losses from pension and postretirement plans		224	338
Other		987	(5,466)
Changes in operating assets and liabilities:
Receivables		(21,031)	(26,203)
Inventories		(994)	1,014
Accounts payable		5,558	4,448
Income tax receivable/payable		0	(84)
All other operating activities		2,679	12,510
CASH PROVIDED BY OPERATING ACTIVITIES		116,954	181,583
INVESTING ACTIVITIES
Capital expenditures		(29,505)	(25,920)
Real estate development investments		(999)	(4,501)
Purchase of timberlands		(26,396)	(31,234)
Other		(3,888)	113
CASH USED FOR INVESTING ACTIVITIES		(60,788)	(61,542)
FINANCING ACTIVITIES
Issuance of debt		0	1,014
Repayment of debt		0	(54,389)
Dividends paid		(71,107)	(67,053)
Proceeds from the issuance of common shares under incentive stock plan		774	7,824
Repurchase of common shares		(4,241)	(2,966)
Distribution to minority shareholder		(3,594)	0
Other		133	0
CASH USED FOR FINANCING ACTIVITIES		(78,035)	(115,570)
EFFECT OF EXCHANGE RATE CHANGES ON CASH		125	(578)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Change in cash, cash equivalents and restricted cash		(21,744)	3,893
Balance, beginning of year		156,454	172,356
Balance, end of period		134,710	176,249
Cash paid during the period:
Interest	[1]	14,377	14,858
Income taxes		705	302
Non-cash investing activity:
Capital assets purchased on account		$ 3,407	$ 6,646

[1] Interest paid is presented net of patronage payments received of $4.0 million and $3.8 million for the six months ended June 30, 2019 and June 30, 2018, respectively. For additional information on patronage payments, see Note 5 — Debt in the 2018 Form 10-K.

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Statement of Cash Flows [Abstract]
Patronage refunds received, netted with interest paid	$ 4.0	$ 3.8

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BASIS OF PRESENTATION

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

BASIS OF PRESENTATION

The unaudited consolidated financial statements and notes thereto of Rayonier Inc. and its subsidiaries (“Rayonier” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). The year-end balance sheet information was derived from audited financial statements not included herein. In the opinion of management, these financial statements and notes reflect any adjustments (all of which are normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. These statements and notes should be read in conjunction with the financial statements and supplementary data included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, as filed with the SEC (the “2018 Form 10-K”).

SUMMARY OF UPDATES TO SIGNIFICANT ACCOUNTING POLICIES

For information on updated significant accounting policies due to the adoption of ASC 842, see Note 3 — Leases. For a full description of our other significant accounting policies, see Note 1 — Basis of Presentation in the 2018 Form 10-K.

RECENTLY ADOPTED STANDARDS

ASU 2016-02 (ASC 842)

The Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), on January 1, 2019 and elected to apply the standard as of that day. As such, the Consolidated Balance Sheet as of June 30, 2019 includes right-of-use assets and lease liabilities related to the rights and obligations created by the Company’s long-term leases. Prior periods have not been restated.

The Company applied the following practical expedients in the transition to the new standard as allowed under ASC 842-10-65-1:

Practical Expedient	Description
Reassessment of expired or existing contracts	The Company elected not to reassess, at the application date, whether any expired or existing contracts contained leases, the lease classification for any expired or existing leases, and the accounting for initial direct costs for any existing leases.
Use of hindsight	The Company elected to use hindsight in determining the lease term (that is, when considering options to extend or terminate the lease and to purchase the underlying asset) and in assessing impairment of right-to-use assets.
Reassessment of existing or expired land easements	The Company elected not to evaluate existing or expired land easements that were not previously accounted for as leases under ASC 840, as allowed under the transition practical expedient. Going forward, new or modified land easements will be evaluated under ASU No. 2016-02.

See Note 3 — Leases for additional qualitative and quantitative disclosures required under ASU No. 2016-02.

OTHER RECENTLY ADOPTED STANDARDS

The Company adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities in the first quarter ended March 31, 2019 with no material impact on the consolidated financial statements.

The Company adopted ASU No 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting in the first quarter ended March 31, 2019 with no impact on the consolidated financial statements.

NEW ACCOUNTING STANDARDS

During the six months ended June 30, 2019, the Financial Accounting Standards Board (“FASB”) has not issued any Accounting Standard Updates which are expected to have a material retrospective or future effect on the consolidated financial statements.

SUBSEQUENT EVENTS

The Company has evaluated events occurring from June 30, 2019 to the date of issuance of these Consolidated Financial Statements for potential recognition or disclosure in the consolidated financial statements. No events were identified that warranted recognition or disclosure.

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REVENUE

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

REVENUE

REVENUE

PERFORMANCE OBLIGATIONS

The Company recognizes revenues when control of promised goods or services (“performance obligations”) is transferred to customers, in an amount that reflects the consideration expected in exchange for those goods or services (“transaction price”). The Company generally satisfies performance obligations within a year of entering into a contract and therefore has applied the disclosure exemption found under ASC 606-10-50-14. Unsatisfied performance obligations as of June 30, 2019 are primarily due to advances on stumpage contracts and unearned license revenue. These performance obligations are expected to be satisfied within the next twelve months. The Company generally collects payment within a year of satisfying performance obligations and therefore has elected not to adjust revenues for a financing component. 

CONTRACT BALANCES

The timing of revenue recognition, invoicing and cash collections results in accounts receivable and deferred revenue (contract liabilities) on the Consolidated Balance Sheets. Accounts receivable are recorded when the Company has an unconditional right to consideration for completed performance under the contract. Contract liabilities relate to payments received in advance of performance under the contract. Contract liabilities are recognized as revenue as (or when) the Company performs under the contract.

The following table summarizes revenue recognized during the three and six months ended June 30, 2019 and 2018 that was included in the contract liability balance at the beginning of each year:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Revenue recognized from contract liability balance at the beginning of the year (a)		$3,440		$5,429		$8,796		$11,800

(a) Revenue recognized was primarily from hunting licenses and the use of advances on pay-as-cut timber sales.

The following tables present our revenue from contracts with customers disaggregated by product type for the three and six months ended June 30, 2019 and 2018:

Three Months Ended	Southern Timber		Pacific Northwest Timber		New Zealand Timber		Real Estate		Trading		Elim.			Total
June 30, 2019
Pulpwood		$19,310		$2,267		$8,581	—			$3,826	—				$33,984
Sawtimber	16,286		15,407		52,427		—		31,377		—			115,497
Hardwood	1,391		—		—		—		—		—			1,391
Total Timber Sales	36,987		17,674		61,008		—		35,203		—			150,872
License Revenue, Primarily From Hunting	4,296		103		142		—		—		—			4,541
Other Non-Timber/Carbon Revenue	4,914		779		977		—		—		—			6,670
Agency Fee Income	—		—		—		—		184		—			184
Total Non-Timber Sales	9,210		882		1,119		—		184		—			11,395
Improved Development	—		—		—		172		—		—			172
Unimproved Development	—		—		—		14,431		—		—			14,431
Rural	—		—		—		6,799		—		—			6,799
Non-strategic / Timberlands	—		—		—		1,123		—		—			1,123
Other	—		—		—		8		—		—			8
Total Real Estate Sales	—		—		—		22,533		—		—			22,533
Revenue from Contracts with Customers	46,197		18,556		62,127		22,533		35,387		—			184,800
Intersegment	—		—		—		—		74		(74		)	—
Total Revenue		$46,197		$18,556		$62,127		$22,533		$35,461		($74	)		$184,800
June 30, 2018
Pulpwood		$20,300		$4,625		$7,788	—			$3,804	—				$36,517
Sawtimber	15,776		26,654		61,219		—		42,162		—			145,811
Hardwood	1,214		—		—		—		—		—			1,214
Total Timber Sales	37,290		31,279		69,007		—		45,966		—			183,542
License Revenue, Primarily from Hunting	3,936		103		142		—		—		—			4,181
Other Non-Timber/Carbon Revenue	6,821		831		504		—		—		—			8,156
Agency Fee Income	—		—		—		—		167		—			167
Total Non-Timber Sales	10,757		934		646		—		167		—			12,504
Improved Development	—		—		—		1,345		—		—			1,345
Rural	—		—		—		4,827		—		—			4,827
Non-strategic / Timberlands	—		—		—		43,688		—		—			43,688
Total Real Estate Sales	—		—		—		49,860		—		—			49,860
Revenue from Contracts with Customers	48,047		32,213		69,653		49,860		46,133		—			245,906
Intersegment	—		—		—		—		29		(29		)	—
Total Revenue		$48,047		$32,213		$69,653		$49,860		$46,162		($29	)		$245,906

Six Months Ended	Southern Timber		Pacific Northwest Timber		New Zealand Timber		Real Estate		Trading		Elim.			Total
June 30, 2019
Pulpwood		$46,109		$5,087		$17,349	—			$8,152	—				$76,697
Sawtimber	39,437		32,684		98,290		—		58,890		—			229,301
Hardwood	2,477		—		—		—		—		—			2,477
Total Timber Sales	88,023		37,771		115,639		—		67,042		—			308,475
License Revenue, Primarily From Hunting	8,420		205		195		—		—		—			8,820
Other Non-Timber/Carbon Revenue	10,600		1,115		3,423		—		—		—			15,138
Agency Fee Income	—		—		—		—		381		—			381
Total Non-Timber Sales	19,020		1,320		3,618		—		381		—			24,339
Improved Development	—		—		—		514		—		—			514
Unimproved Development	—		—		—		15,430		—		—			15,430
Rural	—		—		—		19,464		—		—			19,464
Non-strategic / Timberlands	—		—		—		8,056		—		—			8,056
Other	—		—		—		68		—		—			68
Total Real Estate Sales	—		—		—		43,532		—		—			43,532
Revenue from Contracts with Customers	107,043		39,091		119,257		43,532		67,423		—			376,346
Intersegment	—		—		—		—		103		(103		)	—
Total Revenue		$107,043		$39,091		$119,257		$43,532		$67,526		($103	)		$376,346
June 30, 2018
Pulpwood		$41,904		$8,044		$13,632	—			$8,062	—				$71,642
Sawtimber	31,713		53,721		105,964		—		76,987		—			268,385
Hardwood	1,811		—		—		—		—		—			1,811
Total Timber Sales	75,428		61,765		119,596		—		85,049		—			341,838
License Revenue, Primarily from Hunting	8,024		128		194		—		—		—			8,346
Other Non-Timber/Carbon Revenue	8,183		1,694		2,827		—		—		—			12,704
Agency Fee Income	—		—		—		—		289		—			289
Total Non-Timber Sales	16,207		1,822		3,021		—		289		—			21,339
Improved Development	—		—		—		2,465		—		—			2,465
Unimproved Development	—		—		—		7,446		—		—			7,446
Rural	—		—		—		6,480		—		—			6,480
Non-strategic / Timberlands	—		—		—		69,533		—		—			69,533
Total Real Estate Sales	—		—		—		85,924		—		—			85,924
Revenue from Contracts with Customers	91,635		63,587		122,617		85,924		85,338		—			449,101
Intersegment	—		—		—		—		35		(35		)	—
Total Revenue		$91,635		$63,587		$122,617		$85,924		$85,373		($35	)		$449,101

The following tables present our timber sales disaggregated by contract type for the three and six months ended June 30, 2019 and 2018:

Three Months Ended	Southern Timber		Pacific Northwest Timber		New Zealand Timber		Trading		Total
June 30, 2019
Stumpage Pay-as-Cut		$15,172	—		—		—			$15,172
Stumpage Lump Sum	581		—		—		—		581
Total Stumpage	15,753		—		—		—		15,753
Delivered Wood (Domestic)	17,041		17,674		21,739		2,669		59,123
Delivered Wood (Export)	4,193		—		39,269		32,534		75,996
Total Delivered	21,234		17,674		61,008		35,203		135,119
Total Timber Sales		$36,987		$17,674		$61,008		$35,203		$150,872
June 30, 2018
Stumpage Pay-as-Cut		$19,855	—		—		—			$19,855
Stumpage Lump Sum	256		4,605		—		—		4,861
Total Stumpage	20,111		4,605		—		—		24,716
Delivered Wood (Domestic)	15,166		26,674		25,647		1,567		69,054
Delivered Wood (Export)	2,013		—		43,360		44,399		89,772
Total Delivered	17,179		26,674		69,007		45,966		158,826
Total Timber Sales		$37,290		$31,279		$69,007		$45,966		$183,542

Six Months Ended	Southern Timber		Pacific Northwest Timber		New Zealand Timber		Trading		Total
June 30, 2019
Stumpage Pay-as-Cut		$43,180	—		—		—			$43,180
Stumpage Lump Sum	2,675		—		—		—		2,675
Total Stumpage	45,855		—		—		—		45,855
Delivered Wood (Domestic)	36,379		37,771		42,439		4,793		121,382
Delivered Wood (Export)	5,789		—		73,200		62,249		141,238
Total Delivered	42,168		37,771		115,639		67,042		262,620
Total Timber Sales		$88,023		$37,771		$115,639		$67,042		$308,475
June 30, 2018
Stumpage Pay-as-Cut		$42,364	—		—		—			$42,364
Stumpage Lump Sum	2,074		9,711		—		—		11,785
Total Stumpage	44,438		9,711		—		—		54,149
Delivered Wood (Domestic)	28,543		52,054		45,750		2,504		128,851
Delivered Wood (Export)	2,447		—		73,846		82,545		158,838
Total Delivered	30,990		52,054		119,596		85,049		287,689
Total Timber Sales		$75,428		$61,765		$119,596		$85,049		$341,838

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LEASES

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

LEASES

LEASES

ADOPTION OF ASC 842

For information on the adoption of ASC 842, including required transition disclosures, see Note 1 — Basis of Presentation.

TIMBERLAND LEASES

U.S. timberland leases typically have initial terms of approximately 30 to 65 years, with renewal provisions in some cases. New Zealand timberland lease terms typically range between 30 and 99 years. New Zealand lease arrangements generally consist of Crown Forest Licenses (“CFLs”), forestry rights and land leases. A CFL is a license arrangement to use government or privately owned land to operate a commercial forest. CFLs generally extend indefinitely and may only be terminated upon a 35-year termination notice. If no termination notice is given, the CFLs renew automatically each year for a one-year term. Alternatively, some CFLs extend for a specific term. Once a CFL is terminated, the Company may be able to obtain a forestry right from the subsequent owner. A forestry right is a license arrangement with a private entity to use their lands to operate a commercial forest. Forestry rights terminate either upon the issuance of a termination notice (which can last 35 to 45 years), completion of harvest, or a specified termination date.

As of June 30, 2019, the New Zealand subsidiary has two CFLs comprising 9,000 acres under termination notice that are currently being relinquished as harvest activities are concluding, as well as two fixed-term CFLs comprising 3,000 acres expiring in 2062. Additionally, the New Zealand subsidiary has two forestry rights comprising 32,000 acres under termination notice that are currently being relinquished as harvest activities are concluding.

OTHER NON-TIMBERLAND LEASES

In addition to timberland holdings, the Company leases properties for certain office locations. Significant leased properties include a regional office in Lufkin, Texas; a Pacific Northwest Timber office in Hoquiam, Washington and a New Zealand Timber and Trading headquarters in Auckland, New Zealand.

LEASE MATURITIES, LEASE COST AND OTHER LEASE INFORMATION

The following table details the Company’s undiscounted lease obligations as of June 30, 2019 by type of lease and year of expiration:

				Year of Expiration
Lease obligations	Total			Remaining 2019		2020		2021		2022		2023		Thereafter
Operating lease liabilities		$202,266			$5,874		$9,642		$9,494		$8,858		$8,318		$160,080
Total Undiscounted Cash Flows		$202,266			$5,874		$9,642		$9,494		$8,858		$8,318		$160,080
Imputed interest	(98,212		)
Balance at June 30, 2019	104,054
Less: Current portion	(10,305		)
Non-current portion at June 30, 2019		$93,749

The following table details components of the Company’s lease cost for the three and six months ended June 30, 2019:

	Three Months Ended June 30,		Six Months Ended June 30,
Lease Cost Components	2019		2019
Operating lease cost	2,396		4,833
Variable lease cost (a)	81		157
Total lease cost (b)		$2,477		$4,990

(a) The majority of timberland leases are subject to increases or decreases based on either the Consumer Price Index, Producer Price Index or market rates.

(b) Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for these leases are expensed on a straight line basis over the lease term. Short-term lease expense was not material for the three and six months ended June 30,2019. 

The following table details components of the Company’s lease cost for the six months ended June 30, 2019:

	Six Months Ended June 30,
Supplemental cash flow information related to leases:	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	1,493
Investing cash flows from operating leases	3,340
Total cash flows from operating leases		$4,833
Weighted-average remaining lease term in years - operating leases	28
Weighted-average discount rate - operating leases	5		%

The Company applied the following practical expedients upon adoption of the the new standard as allowed under ASC 842:

Practical Expedient	Description
Short-term leases	The Company does not record right-of-use assets or lease liabilities for short-term leases (a lease that at commencement date has a lease term of 12 months or less and does not contain a purchase option that is reasonably certain to be exercised).
Separation of lease and non-lease components	The Company does not separate non-lease components from the associated lease components if they have the same timing and pattern of transfer and, if accounted for separately, would both be classified as an operating lease.

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NEW ZEALAND SUBSIDIARY

6 Months Ended

Jun. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

NEW ZEALAND SUBSIDIARY

NEW ZEALAND SUBSIDIARY

The Company maintains a 77% controlling financial interest in Matariki Forestry Group (the “New Zealand subsidiary”), a joint venture that owns or leases approximately 410,000 legal acres of New Zealand timberland. Accordingly, the Company consolidates the New Zealand subsidiary’s balance sheet and results of operations. The portions of the consolidated financial position and results of operations attributable to the New Zealand subsidiary’s 23% noncontrolling interest are shown separately within the Consolidated Statements of Income and Comprehensive Income and Consolidated Statements of Shareholders’ Equity. Rayonier New Zealand Limited (“RNZ”), a wholly-owned subsidiary of Rayonier Inc., serves as the manager of the New Zealand subsidiary.

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SEGMENT AND GEOGRAPHICAL INFORMATION

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

SEGMENT AND GEOGRAPHICAL INFORMATION

SEGMENT AND GEOGRAPHICAL INFORMATION

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 “unallocated interest expense and other.”

The following tables summarize the segment information for the three and six months ended June 30, 2019 and 2018:

	Three Months Ended June 30,						Six Months Ended June 30,
SALES	2019			2018			2019			2018
Southern Timber		$46,197			$48,047			$107,043			$91,635
Pacific Northwest Timber	18,556			32,213			39,091			63,587
New Zealand Timber	62,127			69,653			119,257			122,617
Real Estate	22,533			49,860			43,532			85,924
Trading	35,461			46,162			67,526			85,373
Intersegment Eliminations	(74		)	(29		)	(103		)	(35		)
Total		$184,800			$245,906			$376,346			$449,101

	Three Months Ended June 30,						Six Months Ended June 30,
OPERATING INCOME (LOSS)	2019			2018			2019			2018
Southern Timber		$14,741			$15,651			$36,261			$27,878
Pacific Northwest Timber	(3,815		)	5,625			(7,556		)	10,299
New Zealand Timber	12,797			17,768			28,517			33,725
Real Estate	15,468			18,864			25,495			46,918
Trading	(171		)	227			309			376
Corporate and other	(7,627		)	(6,490		)	(13,113		)	(10,476		)
Total Operating Income	31,393			51,645			69,913			108,720
Unallocated interest expense and other	(6,865		)	(5,197		)	(13,242		)	(12,630		)
Total Income before Income Taxes		$24,528			$46,448			$56,671			$96,090

	Three Months Ended June 30,				Six Months Ended June 30,
DEPRECIATION, DEPLETION AND AMORTIZATION	2019		2018		2019		2018
Southern Timber		$12,880		$14,940		$32,608		$30,919
Pacific Northwest Timber	6,045		9,381		12,871		18,885
New Zealand Timber	7,189		8,026		13,508		13,743
Real Estate	1,199		13,739		4,534		16,805
Corporate and other	288		297		572		568
Total		$27,601		$46,383		$64,093		$80,920

	Three Months Ended June 30,				Six Months Ended June 30,
NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT	2019		2018		2019		2018
Real Estate		$1,617		$13,312		$5,647		$14,936
Total		$1,617		$13,312		$5,647		$14,936

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DEBT

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

DEBT

DEBT

Rayonier’s debt consisted of the following at June 30, 2019:

	June 30, 2019
Term Credit Agreement borrowings due 2024 at a variable interest rate of 4.1% at June 30, 2019 (a)		$350,000
Senior Notes due 2022 at a fixed interest rate of 3.75%	325,000
Incremental Term Loan Agreement borrowings due 2026 at a variable interest rate of 4.3% at June 30, 2019 (b)	300,000
Total debt	975,000
Less: Deferred financing costs	(2,152		)
Long-term debt, net of deferred financing costs		$972,848

(a) As of June 30, 2019, the periodic interest rate on the term loan facility was LIBOR plus 1.625%. The Company estimates the effective fixed interest rate on the term loan facility to be approximately 3.3% after consideration of interest rate swaps and estimated patronage refunds.

(b) As of June 30, 2019, the periodic interest rate on the incremental term loan was LIBOR plus 1.900%. The Company estimates the effective fixed interest rate on the incremental term loan facility to be approximately 2.8% after consideration of interest rate swaps and estimated patronage refunds.

Principal payments due during the next five years and thereafter are as follows:

2019	—
2020	—
2021	—
2022	325,000
2023	—
Thereafter	650,000
Total Debt		$975,000

2019 DEBT ACTIVITY

During the six months ended June 30, 2019, the Company made no borrowings or repayments on its Revolving Credit Facility. At June 30, 2019, the Company had available borrowings of $198.4 million under the Revolving Credit Facility, net of $1.6 million to secure its outstanding letters of credit.

During the six months ended June 30, 2019, the New Zealand subsidiary made no borrowings or repayments on its working capital facility. At June 30, 2019, the New Zealand subsidiary had NZ$20.0 million of available borrowings under its working capital facility.

DEBT COVENANTS

In connection with the Company’s $350 million term credit agreement (the “Term Credit Agreement”), $300 million incremental term loan agreement (the “Incremental Term Loan Agreement”) and $200 million revolving credit facility (the “Revolving Credit Facility”), customary covenants must be met, the most significant of which include interest coverage and leverage ratios.

In addition to these financial covenants listed above, the Senior Notes, Term Credit Agreement, Incremental Term Loan Agreement and Revolving Credit Facility include customary covenants that limit the incurrence of debt and the disposition of assets, among others. At June 30, 2019, the Company was in compliance with all applicable covenants.

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HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS

6 Months Ended

Jun. 30, 2019

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, 2018 to June 30, 2019 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, 2018		$59,189			$26,420			$85,609
Plus: Current portion (a)	4,239			7,680			11,919
Total Balance at December 31, 2018	63,428			34,100			97,528
Non-cash cost of land and improved development	(1,288		)	(376		)	(1,664		)
Timber depletion from harvesting activities and basis of timber sold in real estate sales	(1,657		)	—			(1,657		)
Capitalized real estate development investments (b)	—			999			999
Capital expenditures (silviculture)	117			—			117
Intersegment transfers	76			—			76
Total Balance at June 30, 2019	60,676			34,723			95,399
Less: Current portion (a)	(3,476		)	(14,851		)	(18,327		)
Non-current portion at June 30, 2019		$57,200			$19,872			$77,072

(a) The current portion of Higher and Better Use Timberlands and Real Estate Development Investments is recorded in Inventory. See Note 17 — Inventory for additional information.

(b)

Capitalized real estate development investments include $0.3 million of capitalized interest.

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COMMITMENTS

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS

COMMITMENTS

At June 30, 2019, the future minimum payments under non-cancellable commitments were as follows:

	Development Projects (a)		Pension Contributions (b)		Commitments (c)		Total
Remaining 2019		$1,742		$884		$1,329		$3,955
2020	—		442		619		1,061
2021	—		—		134		134
2022	—		—		3		3
2023	—		—		—		—
Thereafter	—		—		—		—
		$1,742		$1,326		$2,085		$5,153

(a) Consists of payments expected to be made on the Company’s Wildlight development project.

(b) Pension contribution requirements are based on actuarially determined estimates and IRS minimum funding requirements.

(c)

Commitments include payments expected to be made on foreign exchange contracts, timberland deeds and other purchase obligations.

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INCOME TAXES

6 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Company’s timber operations are primarily conducted by the Company’s REIT entity, which is generally not subject to U.S. federal and state income tax. The New Zealand timber operations are conducted by the New Zealand subsidiary, which is subject to corporate-level tax in New Zealand. Non-REIT qualifying operations, which are subject to corporate-level tax, are conducted by various TRS entities. These operations include log trading and certain real estate activities, such as the sale, entitlement and development of HBU properties.

PROVISION FOR INCOME TAXES

The Company’s tax expense is principally related to New Zealand corporate-level tax on the New Zealand subsidiary income. The following table contains the income tax expense recognized on the Consolidated Statements of Income and Comprehensive Income.

	Three Months Ended  June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Income tax expense		($3,608	)		($7,110	)		($7,958	)		($14,047	)

ANNUAL EFFECTIVE TAX RATE

The Company’s effective tax rate is below the 21.0% U.S. statutory rate due to tax benefits associated with being a REIT. The following table contains the Company’s annualized effective tax rate.

	Six Months Ended June 30,
	2019		2018
Annualized effective tax rate	15.5	%	14.5	%

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CONTINGENCIES

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

CONTINGENCIES

CONTINGENCIES

The Company has been named as a defendant in various lawsuits and claims arising in the normal course of business. While the Company has procured reasonable and customary insurance covering risks normally occurring in connection with its businesses, it has in certain cases retained some risk through the operation of large deductible insurance plans, primarily in the areas of executive risk, property, automobile and general liability. These pending lawsuits and claims, either individually or in the aggregate, are not expected to have a material adverse effect on the Company’s financial position, results of operations, or cash flow.

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GUARANTEES

6 Months Ended

Jun. 30, 2019

Guarantees [Abstract]

GUARANTEES

GUARANTEES

The Company provides financial guarantees as required by creditors, insurance programs, and various governmental agencies.

As of June 30, 2019, the following financial guarantees were outstanding:

Financial Commitments (a)	Maximum Potential Payment
Standby letters of credit (b)		$1,585
Surety bonds (c)	3,377
Total financial commitments		$4,962

(a) The Company has not recorded any liabilities for these financial commitments in the Consolidated Balance Sheets. The guarantees are not subject to measurement, as the guarantees are dependent on the Company’s own performance.

(b) Approximately $0.6 million of the standby letters of credit serve as credit support for infrastructure at the Company’s Wildlight development project. The remaining letters of credit support various insurance related agreements, primarily workers’ compensation. These letters of credit will expire at various dates during 2019 and 2020 and will be renewed as required.

(c)

Rayonier issues surety bonds primarily to secure performance obligations related to various operational activities and to provide collateral for outstanding claims under the Company’s previous workers’ compensation self-insurance programs in Washington and Florida. These surety bonds expire at various dates during 2019 and 2020 and are expected to be renewed as required.

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EARNINGS PER COMMON SHARE

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE

The following table provides details of the calculations of basic and diluted earnings per common share:

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Net Income		$20,920			$39,338			$48,713			$82,043
Less: Net income attributable to noncontrolling interest	(2,168		)	(3,080		)	(5,167		)	(5,246		)
Net income attributable to Rayonier Inc.		$18,752			$36,258			$43,546			$76,797
Shares used for determining basic earnings per common share	129,380,282			129,067,325			129,277,490			128,935,003
Dilutive effect of:
Stock options	13,463			103,154			16,580			90,815
Performance and restricted shares	250,170			540,808			403,915			606,760
Shares used for determining diluted earnings per common share	129,643,915			129,711,287			129,697,985			129,632,578
Basic earnings per common share attributable to Rayonier Inc.:		$0.14			$0.28			$0.34			$0.60
Diluted earnings per common share attributable to Rayonier Inc.:		$0.14			$0.28			$0.34			$0.59

	Three Months Ended June 30,		Six Months Ended June 30,
	2019	2018	2019	2018
Anti-dilutive shares excluded from the computations of diluted earnings per share:
Stock options and performance shares	451,258	254,663	444,765	213,241

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

The Company is exposed to market risk related to potential fluctuations in foreign currency exchange rates and interest rates. The Company uses derivative financial instruments to mitigate the financial impact of exposure to these risks.

Accounting for derivative financial instruments is governed by ASC Topic 815, Derivatives and Hedging, (“ASC 815”). In accordance with ASC 815, the Company records its derivative instruments at fair value as either assets or liabilities in the Consolidated Balance Sheets. Changes in the instruments’ fair value are accounted for based on their intended use. Gains and losses on derivatives that are designated and qualify for cash flow hedge accounting are recorded as a component of accumulated other comprehensive (loss) income (“AOCI”) and reclassified into earnings when the hedged transaction materializes. Gains and losses on derivatives that are designated and qualify for net investment hedge accounting are recorded as a component of AOCI and will not be reclassified into earnings until the Company’s investment in its New Zealand operations is partially or completely liquidated. The ineffective portion of any hedge, changes in the fair value of derivatives not designated as hedging instruments and those which are no longer effective as hedging instruments, are recognized immediately in earnings.

FOREIGN CURRENCY EXCHANGE AND OPTION CONTRACTS

The functional currency of Rayonier’s wholly owned subsidiary, Rayonier New Zealand Limited, and the New Zealand subsidiary is the New Zealand dollar. The New Zealand subsidiary is exposed to foreign currency risk on export sales and ocean freight payments which are mainly denominated in U.S. dollars. The New Zealand subsidiary typically hedges 35% to 90% of its estimated foreign currency exposure with respect to the following three months forecasted sales and purchases, 25% to 75% of forecasted sales and purchases for the forward three to 12 months and up to 50% of the forward 12 to 18 months. Foreign currency exposure from the New Zealand subsidiary’s trading operations is typically hedged based on the following three months forecasted sales and purchases. As of June 30, 2019, foreign currency exchange contracts and foreign currency option contracts had maturity dates through November 2020 and September 2020, respectively.

Foreign currency exchange and option contracts hedging foreign currency risk on export sales and ocean freight payments qualify for cash flow hedge accounting. The fair value of foreign currency exchange contracts is determined by a mark-to-market valuation which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate. The fair value of foreign currency option contracts is based on a mark-to-market calculation using the Black-Scholes option pricing model.

The Company may de-designate these cash flow hedge relationships in advance or at the occurrence of the forecasted transaction. The portion of gains or losses on the derivative instrument previously accumulated in other comprehensive income for de-designated hedges remains in accumulated other comprehensive (loss) income until the forecasted transaction affects earnings. Changes in the value of derivative instruments after de-designation are recorded in earnings.

INTEREST RATE SWAPS

The Company is exposed to cash flow interest rate risk on its variable-rate Term Credit Agreement and Incremental Term Loan Agreement and uses variable-to-fixed interest rate swaps to hedge this exposure. For these derivative instruments, the Company reports the gains/losses from the fluctuations in the fair market value of the hedges in AOCI and reclassifies them to earnings as interest expense in the same period in which the hedged interest payments affect earnings.

The following table contains information on the outstanding interest rate swaps as of June 30, 2019:

Outstanding Interest Rate Swaps (a)
Date Entered Into	Term	Notional Amount		Related Debt Facility	Fixed Rate of Swap		Bank Margin on Debt		Total Effective Interest Rate (b)
August 2015	9 years		$170,000	Term Credit Agreement	2.20	%	1.63	%	3.83	%
August 2015	9 years	180,000		Term Credit Agreement	2.35	%	1.63	%	3.98	%
April 2016	10 years	100,000		Incremental Term Loan	1.60	%	1.90	%	3.50	%
April 2016	10 years	100,000		Incremental Term Loan	1.60	%	1.90	%	3.50	%
July 2016	10 years	100,000		Incremental Term Loan	1.26	%	1.90	%	3.16	%

(a) All interest rate swaps have been designated as interest rate cash flow hedges and qualify for hedge accounting.

(b) Rate is before estimated patronage payments.

CARBON OPTIONS

The New Zealand subsidiary enters into carbon options from time to time to sell carbon assets at certain prices. The fair value of carbon options is determined by a mark-to-market valuation using the Black-Scholes option pricing model, which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate. Changes in fair value of the carbon option contracts are recorded in “Interest and other miscellaneous income, net” as the contracts did not qualify for hedge accounting treatment. As of June 30, 2019, carbon option contracts had maturity dates through April 2020.

The following tables demonstrate the impact, gross of tax, of the Company’s derivatives on the Consolidated Statements of Income and Comprehensive Income for the three and six months ended June 30, 2019 and 2018.

		Three Months Ended June 30,
	Income Statement Location	2019			2018
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	Other comprehensive (loss) income		($219	)		($6,630	)
Foreign currency option contracts	Other comprehensive (loss) income	(107		)	(539		)
Interest rate swaps	Other comprehensive (loss) income	(19,284		)	5,690
Derivatives designated as a net investment hedge:
Foreign currency exchange contract	Other comprehensive (loss) income	—			(454		)
Derivatives not designated as hedging instruments:
Foreign currency exchange contracts	Interest and other miscellaneous income, net	152			2,479
Carbon option contracts	Interest and other miscellaneous income, net	12			—

		Six Months Ended June 30,
	Income Statement Location	2019			2018
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	Other comprehensive (loss) income		$900			($5,398	)
Foreign currency option contracts	Other comprehensive (loss) income	(30		)	(359		)
Interest rate swaps	Other comprehensive (loss) income	(30,831		)	21,287
Derivatives designated as a net investment hedge:
Foreign currency exchange contract	Other comprehensive (loss) income	—			(344		)
Derivatives not designated as hedging instruments:
Foreign currency exchange contracts	Interest and other miscellaneous income, net	135			2,608
Carbon option contracts	Interest and other miscellaneous income, net	415			—

During the next 12 months, the amount of the June 30, 2019 AOCI balance, net of tax, expected to be reclassified into earnings as a result of the maturation of the Company’s derivative instruments is a loss of approximately $0.5 million.

The following table contains the notional amounts of the derivative financial instruments recorded in the Consolidated Balance Sheets:

	Notional Amount
	June 30, 2019		December 31, 2018
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts		$100,500		$69,950
Foreign currency option contracts	20,000		24,000
Interest rate swaps	650,000		650,000
Derivative not designated as a hedging instrument:
Foreign currency exchange contracts	—		9,396
Carbon options (a)	3,102		2,517

(a)    Notional amount for carbon options is calculated as the number of units outstanding multiplied by the spot price as of June 30, 2019.

The following table contains the fair values of the derivative financial instruments recorded in the Consolidated Balance Sheets:

	Location on Balance Sheet	Fair Value Assets / (Liabilities) (a)
		June 30, 2019			December 31, 2018
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	Other current assets		$304		—
	Other assets	159			—
	Other current liabilities	(1,083		)	(1,569		)
	Other non-current liabilities	(50		)	—
Foreign currency option contracts	Other current assets	123			217
	Other assets	63			102
	Other current liabilities	(37		)	(106		)
	Other non-current liabilities	(33		)	(68		)
Interest rate swaps	Other assets	4,159			23,735
	Other non-current liabilities	(11,256		)	—
Derivative not designated as a hedging instrument:
Foreign currency exchange contracts	Other current assets	—			152
	Other current liabilities	—			(24		)
Carbon options	Other current liabilities	(2		)	(322		)
Total derivative contracts:
Other current assets			$427			$369
Other assets		4,381			23,837
Total derivative assets			$4,808			$24,206
Other current liabilities		(1,122		)	(2,021		)
Other non-current liabilities		(11,339		)	(68		)
Total derivative liabilities			($12,461	)		($2,089	)

(a)    See Note 14 — Fair Value Measurements for further information on the fair value of the Company’s derivatives including their classification within the fair value hierarchy.

OFFSETTING DERIVATIVES

Derivative financial instruments are presented at their gross fair values in the Consolidated Balance Sheets. The Company’s derivative financial instruments are not subject to master netting arrangements, which would allow the right of offset.

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FAIR VALUE MEASUREMENTS

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

A three-level hierarchy that prioritizes the inputs used to measure fair value was established in the Accounting Standards Codification as follows:

Level 1 — Quoted prices in active markets for identical assets or liabilities.

Level 2 — Observable inputs other than quoted prices included in Level 1.

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The following table presents the carrying amount and estimated fair values of financial instruments held by the Company at June 30, 2019 and December 31, 2018, using market information and what the Company believes to be appropriate valuation methodologies under GAAP:

	June 30, 2019							December 31, 2018
Asset (Liability) (a)	Carrying Amount			Fair Value				Carrying Amount			Fair Value
				Level 1		Level 2					Level 1		Level 2
Cash and cash equivalents		$130,956			$130,956	—			$148,374			$148,374	—
Restricted cash (b)	3,754			3,754		—		8,080			8,080		—
Long-term debt (c)	(972,848		)	—		(981,500	)	(972,567		)	—		(975,845	)
Interest rate swaps (d)	(7,097		)	—		(7,097	)	23,735			—		23,735
Foreign currency exchange contracts (d)	(670		)	—		(670	)	(1,442		)	—		(1,442	)
Foreign currency option contracts (d)	116			—		116		145			—		145
Carbon option contracts (d)	(2		)	—		(2	)	(322		)	—		(322	)

(a) The Company did not have Level 3 assets or liabilities at June 30, 2019 and December 31, 2018.

(b) Restricted cash represents the proceeds from like-kind exchange sales deposited with a third-party intermediary and cash held in escrow for a real estate sale. See Note 18 — Restricted Cash for additional information.

(c) The carrying amount of long-term debt is presented net of capitalized debt costs on non-revolving debt. See Note 6 — Debt for additional information.

(d) See Note 13 — Derivative Financial Instruments and Hedging Activities for information regarding the Consolidated Balance Sheets classification of the Company’s derivative financial instruments.

Rayonier uses the following methods and assumptions in estimating the fair value of its financial instruments:

Cash and cash equivalents and Restricted cash — The carrying amount is equal to fair market value.

Debt — The fair value of fixed rate debt is based upon quoted market prices for debt with similar terms and maturities. The variable rate debt adjusts with changes in the market rate, therefore the carrying value approximates fair value.

Interest rate swap agreements — The fair value of interest rate contracts is determined by discounting the expected future cash flows, for each instrument, at prevailing interest rates.

Foreign currency exchange contracts — The fair value of foreign currency exchange contracts is determined by a mark-to-market valuation, which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate.

Foreign currency option contracts — The fair value of foreign currency option contracts is based on a mark-to-market calculation using the Black-Scholes option pricing model.

Carbon option contracts — The fair value of carbon option contracts is determined by a mark-to-market valuation using the Black-Scholes option pricing model, which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate.

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EMPLOYEE BENEFIT PLANS

6 Months Ended

Jun. 30, 2019

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS

The Company has one qualified non-contributory defined benefit pension plan covering a portion of its employees and an unfunded plan that provides benefits in excess of amounts allowable under current tax law in the qualified plan. Both plans are closed to new participants. Effective December 31, 2016, the Company froze benefits for all employees participating in the pension plan. In lieu of the pension plan, the Company provides those employees with an enhanced 401(k) plan match. Employee benefit plan liabilities are calculated using actuarial estimates and management assumptions. These estimates are based on historical information, along with certain assumptions about future events. Changes in assumptions, as well as changes in actual experience, could cause the estimates to change.

As of June 30, 2019, the Company has paid $0.4 million of the approximately $1.3 million in current year mandatory pension contribution requirements (based on actuarially determined estimates and IRS minimum funding requirements).

The net pension and postretirement benefit costs (credit) that have been recorded are shown in the following table:

Components of Net Periodic Benefit Cost (Credit)	Income Statement Location	Pension						Postretirement
		Three Months Ended June 30,						Three Months Ended June 30,
		2019			2018			2019		2018
Service cost	Selling and general expenses	—			—				$1		$2
Interest cost	Interest and other miscellaneous income, net	799			759			13		13
Expected return on plan assets (a)	Interest and other miscellaneous income, net	(777		)	(984		)	—		—
Amortization of losses	Interest and other miscellaneous income, net	112			178			—		—
Net periodic benefit cost (credit)			$134			($47	)		$14		$15

Components of Net Periodic Benefit Cost (Credit)	Income Statement Location	Pension						Postretirement
		Six Months Ended June 30,						Six Months Ended June 30,
		2019			2018			2019		2018
Service cost	Selling and general expenses	—			—				$3		$3
Interest cost	Interest and other miscellaneous income, net	1,599			1,510			27		25
Expected return on plan assets (a)	Interest and other miscellaneous income, net	(1,554		)	(1,968		)	—		—
Amortization of losses	Interest and other miscellaneous income, net	224			338			—		1
Net periodic benefit cost (credit)			$269			($120	)		$30		$29

(a)

The weighted-average expected long-term rate of return on plan assets used in computing 2019 net periodic benefit cost for pension benefits is 5.7%.

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OTHER OPERATING (EXPENSE) INCOME, NET

6 Months Ended

Jun. 30, 2019

Other Income and Expenses [Abstract]

OTHER OPERATING (EXPENSE) INCOME, NET

OTHER OPERATING (EXPENSE) INCOME, NET

Other operating (expense) income, net consisted of the following:

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Foreign currency (expense) income		($659	)		$1,267			($577	)		$514
Gain on sale or disposal of property and equipment	35			12			56			27
(Loss) gain on foreign currency exchange and option contracts	(60		)	386			(113		)	1,819
Log trading marketing fees	80			62			137			131
Income from the sale of unused Internet Protocol addresses	—			—			—			646
Other expense, net	(1,365		)	(68		)	(1,437		)	(108		)
Total		($1,969	)		$1,659			($1,934	)		$3,029

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INVENTORY

6 Months Ended

Jun. 30, 2019

Inventory Disclosure [Abstract]

INVENTORY

INVENTORY

As of June 30, 2019 and December 31, 2018, Rayonier’s inventory consisted entirely of finished goods, as follows:

	June 30, 2019		December 31, 2018
Finished goods inventory
Real estate inventory (a)		$18,327		$11,919
Log inventory	5,270		3,784
Total inventory		$23,597		$15,703

(a)    Represents cost of HBU real estate (including capitalized development investments) expected to be sold within 12 months.

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RESTRICTED CASH

6 Months Ended

Jun. 30, 2019

Restricted Cash and Investments [Abstract]

RESTRICTED CASH

RESTRICTED CASH

In order to qualify for like-kind exchange (“LKE”) treatment, the proceeds from real estate sales must be deposited with a third-party intermediary. These proceeds are accounted for as restricted cash until a suitable replacement property is acquired. In the event LKE purchases are not completed, the proceeds are returned to the Company after 180 days and reclassified as available cash. As of June 30, 2019 and December 31, 2018, the Company had $3.8 million and $8.1 million, respectively, of proceeds from real estate sales classified as restricted cash which were deposited with an LKE intermediary as well as cash held in escrow for a real estate sale.

The following table contains the amounts of restricted cash recorded in the Consolidated Balance Sheets and Consolidated Statements of Cash Flows for the six months ended June 30, 2019:

	June 30, 2019
Restricted cash deposited with LKE intermediary	$3,204
Restricted cash held in escrow	550
Total restricted cash shown in the Consolidated Balance Sheets	3,754
Cash and cash equivalents	130,956
Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows	$134,710

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ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

6 Months Ended

Jun. 30, 2019

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

The following table summarizes the changes in AOCI by component for the six months ended June 30, 2019 and the year ended December 31, 2018. All amounts are presented net of tax and exclude portions attributable to noncontrolling interest.

	Foreign currency translation (loss) gains			Net investment hedges of New Zealand subsidiary			Cash flow hedges				Employee benefit plans				Total
Balance as of December 31, 2017		$15,975			$1,665			$16,184				($20,407	)			$13,417
Other comprehensive (loss) income before reclassifications	(16,985		)	(344		)	5,944				(1,594		)		(12,979		)
Amounts reclassified from accumulated other comprehensive (loss) income	—			—			(163		)		(36		)		(199		)
Net other comprehensive (loss)/income	(16,985		)	(344		)	5,781				(1,630		)		(13,178		)
Balance as of December 31, 2018		($1,010	)		$1,321			$21,965				($22,037	)			$239
Other comprehensive (loss) income before reclassifications	375			—			(30,211		)	(a)	—				(29,836		)
Amounts reclassified from accumulated other comprehensive (loss) income	—			—			(138		)		224			(b)	86
Net other comprehensive (loss)/income	375			—			(30,349		)		224				(29,750		)
Balance as of June 30, 2019		($635	)		$1,321			($8,384	)			($21,813	)			($29,511	)

(a) Includes $30.8 million of other comprehensive income related to interest rate swaps. See Note 13 — Derivative Financial Instruments and Hedging Activities for additional information.

(b) This component of other comprehensive income (loss) is included in the computation of net periodic pension and post-retirement costs. See Note 15 — Employee Benefit Plans for additional information.

The following table presents details of the amounts reclassified in their entirety from AOCI to net income for the six months ended June 30, 2019 and June 30, 2018:

Details about accumulated other comprehensive (loss) income components	Amount reclassified from accumulated other comprehensive (loss) income						Affected line item in the income statement
	June 30, 2019			June 30, 2018
Realized (gain) on foreign currency exchange contracts		($190	)		($1,654	)	Other operating (expense) income, net
Realized loss (gain) on foreign currency option contracts	(60		)	(165		)	Other operating (expense) income, net
Noncontrolling interest	58			419			Comprehensive (loss) income attributable to noncontrolling interest
Income tax expense from gain on foreign currency contracts	54			391			Income tax expense
Net gain from accumulated other comprehensive income		($138	)		($1,009	)

XML

CONSOLIDATING FINANCIAL STATEMENTS

6 Months Ended

Jun. 30, 2019

Condensed Financial Information Disclosure [Abstract]

CONSOLIDATING FINANCIAL STATEMENTS

CONSOLIDATING FINANCIAL STATEMENTS

The condensed consolidating financial information below follows the same accounting policies as described in the consolidated financial statements, except for the use of the equity method of accounting to reflect ownership interests in wholly-owned subsidiaries, which are eliminated upon consolidation, and the allocation of certain expenses of Rayonier Inc. incurred for the benefit of its subsidiaries.

In March 2012, Rayonier Inc. issued $325 million of 3.75% Senior Notes due 2022. In connection with these notes, the Company provides the following condensed consolidating financial information in accordance with SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.

The subsidiary guarantors, Rayonier Operating Company LLC (“ROC”) and Rayonier TRS Holdings Inc., are wholly-owned by the parent company, Rayonier Inc. The notes are fully and unconditionally guaranteed on a joint and several basis by the guarantor subsidiaries.

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME  AND COMPREHENSIVE INCOME
	For the Three Months Ended June 30, 2019
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	—			—				$184,800		—				$184,800
Costs and Expenses
Cost of sales	—			—			(140,454		)	—			(140,454		)
Selling and general expenses	—			(5,660		)	(5,324		)	—			(10,984		)
Other operating expense, net	—			(1,091		)	(878		)	—			(1,969		)
	—			(6,751		)	(146,656		)	—			(153,407		)
OPERATING (LOSS) INCOME	—			(6,751		)	38,144			—			31,393
Interest expense	(3,140		)	(4,769		)	(13		)	—			(7,922		)
Interest and miscellaneous income (expense), net	(457		)	928			586			—			1,057
Equity in income from subsidiaries	22,349			33,071			—			(55,420		)	—
INCOME BEFORE INCOME TAXES	18,752			22,479			38,717			(55,420		)	24,528
Income tax expense	—			(130		)	(3,478		)	—			(3,608		)
NET INCOME	18,752			22,349			35,239			(55,420		)	20,920
Less: Net income attributable to noncontrolling interest	—			—			(2,168		)	—			(2,168		)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	18,752			22,349			33,071			(55,420		)	18,752
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment, net of income tax	(4,305		)	—			(5,604		)	4,305			(5,604		)
Cash flow hedges, net of income tax	(19,465		)	(19,284		)	(235		)	19,465			(19,519		)
Amortization of pension and postretirement plans, net of income tax	112			112			—			(112		)	112
Total other comprehensive (loss) income	(23,658		)	(19,172		)	(5,839		)	23,658			(25,011		)
COMPREHENSIVE (LOSS) INCOME	(4,906		)	3,177			29,400			(31,762		)	(4,091		)
Less: Comprehensive income attributable to noncontrolling interest	—			—			(815		)	—			(815		)
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.		($4,906	)		$3,177			$28,585			($31,762	)		($4,906	)

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME  AND COMPREHENSIVE INCOME
	For the Three Months Ended June 30, 2018
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	—			—				$245,906		—				$245,906
Costs and Expenses
Cost of sales	—			—			(184,418		)	—			(184,418		)
Selling and general expenses	—			(5,471		)	(6,031		)	—			(11,502		)
Other operating (expense) income, net	—			(40		)	1,699			—			1,659
	—			(5,511		)	(188,750		)	—			(194,261		)
OPERATING (LOSS) INCOME	—			(5,511		)	57,156			—			51,645
Interest expense	(3,139		)	(4,900		)	(63		)	—			(8,102		)
Interest and miscellaneous income (expense), net	2,734			746			(575		)	—			2,905
Equity in income from subsidiaries	36,663			46,419			—			(83,082		)	—
INCOME BEFORE INCOME TAXES	36,258			36,754			56,518			(83,082		)	46,448
Income tax expense	—			(91		)	(7,019		)	—			(7,110		)
NET INCOME	36,258			36,663			49,499			(83,082		)	39,338
Less: Net income attributable to noncontrolling interest	—			—			(3,080		)	—			(3,080		)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	36,258			36,663			46,419			(83,082		)	36,258
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment, net of income tax	(22,856		)	341			(30,101		)	22,856			(29,760		)
Cash flow hedges, net of income tax	1,716			5,690			(5,161		)	(1,716		)	529
Amortization of pension and postretirement plans, net of income tax	178			178			—			(178		)	178
Total other comprehensive (loss) income	(20,962		)	6,209			(35,262		)	20,962			(29,053		)
COMPREHENSIVE INCOME	15,296			42,872			14,237			(62,120		)	10,285
Less: Comprehensive loss attributable to noncontrolling interest	—			—			5,011			—			5,011
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.		$15,296			$42,872			$19,248			($62,120	)		$15,296

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME  AND COMPREHENSIVE INCOME
	Six Months Ended June 30, 2019
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	—			—				$376,346		—				$376,346
Costs and Expenses
Cost of sales	—			—			(283,705		)	—			(283,705		)
Selling and general expenses	—			(10,503		)	(10,291		)	—			(20,794		)
Other operating expense, net	—			(1,090		)	(844		)	—			(1,934		)
	—			(11,593		)	(294,840		)	—			(306,433		)
OPERATING (LOSS) INCOME	—			(11,593		)	81,506			—			69,913
Interest expense	(6,278		)	(9,316		)	(38		)	—			(15,632		)
Interest and miscellaneous income (expense), net	(913		)	1,892			1,411			—			2,390
Equity in income from subsidiaries	50,737			70,501			—			(121,238		)	—
INCOME BEFORE INCOME TAXES	43,546			51,484			82,879			(121,238		)	56,671
Income tax expense	—			(747		)	(7,211		)	—			(7,958		)
NET INCOME	43,546			50,737			75,668			(121,238		)	48,713
Less: Net income attributable to noncontrolling interest	—			—			(5,167		)	—			(5,167		)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	43,546			50,737			70,501			(121,238		)	43,546
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment, net of income tax	374			(90		)	520			(375		)	429
Cash flow hedges, net of income tax	(30,349		)	(30,832		)	627			30,349			(30,205		)
Amortization of pension and postretirement plans, net of income tax	224			224			—			(224		)	224
Total other comprehensive (loss) income	(29,751		)	(30,698		)	1,147			29,750			(29,552		)
COMPREHENSIVE INCOME	13,795			20,039			76,815			(91,488		)	19,161
Less: Comprehensive income attributable to noncontrolling interest	—			—			(5,366		)	—			(5,366		)
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.		$13,795			$20,039			$71,449			($91,488	)		$13,795

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME  AND COMPREHENSIVE INCOME
	Six Months Ended June 30, 2018
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	—			—				$449,101		—				$449,101
Costs and Expenses
Cost of sales	—			—			(322,906		)	—			(322,906		)
Selling and general expenses	—			(9,859		)	(10,645		)	—			(20,504		)
Other operating (expense) income, net	(12		)	595			2,446			—			3,029
	(12		)	(9,264		)	(331,105		)	—			(340,381		)
OPERATING (LOSS) INCOME	(12		)	(9,264		)	117,996			—			108,720
Interest expense	(6,278		)	(9,555		)	(322		)	—			(16,155		)
Interest and miscellaneous income (expense), net	5,362			1,511			(3,348		)	—			3,525
Equity in income from subsidiaries	77,725			95,246			—			(172,971		)	—
INCOME BEFORE INCOME TAXES	76,797			77,938			114,326			(172,971		)	96,090
Income tax expense	—			(213		)	(13,834		)	—			(14,047		)
NET INCOME	76,797			77,725			100,492			(172,971		)	82,043
Less: Net income attributable to noncontrolling interest	—			—			(5,246		)	—			(5,246		)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	76,797			77,725			95,246			(172,971		)	76,797
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment, net of income tax	(15,252		)	452			(20,524		)	15,252			(20,072		)
Cash flow hedges, net of income tax	18,097			21,287			(4,144		)	(18,097		)	17,143
Amortization of pension and postretirement plans, net of income tax	338			338			—			(338		)	338
Total other comprehensive (loss) income	3,183			22,077			(24,668		)	(3,183		)	(2,591		)
COMPREHENSIVE INCOME	79,980			99,802			75,824			(176,154		)	79,452
Less: Comprehensive loss attributable to noncontrolling interest	—			—			528			—			528
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.		$79,980			$99,802			$76,352			($176,154	)		$79,980

	CONDENSED CONSOLIDATING BALANCE SHEETS
	As of June 30, 2019
	Rayonier Inc. (Parent Issuer)		Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$84		$92,874			$37,998		—				$130,956
Accounts receivable, less allowance for doubtful accounts	—		1,919			43,012			—			44,931
Inventory	—		—			23,597			—			23,597
Prepaid expenses	—		2,286			18,295			—			20,581
Other current assets	—		97			593			—			690
Total current assets	84		97,176			123,495			—			220,755
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—			2,392,389			—			2,392,389
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS	—		—			77,072			—			77,072
NET PROPERTY, PLANT AND EQUIPMENT	—		16,439			5,605			—			22,044
RESTRICTED CASH	—		—			3,754			—			3,754
RIGHT-OF-USE ASSETS	—		35,291			68,725			—			104,016
INVESTMENT IN SUBSIDIARIES	1,771,540		3,009,380			—			(4,780,920		)	—
INTERCOMPANY RECEIVABLE	56,257		(644,161		)	587,904			—			—
OTHER ASSETS	2		169			40,850			—			41,021
TOTAL ASSETS		$1,827,883		$2,514,294			$3,299,794			($4,780,920	)		$2,861,051
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	—			$4,227			$20,717		—				$24,944
Accrued taxes	—		170			5,765			—			5,935
Accrued payroll and benefits	—		3,123			2,328			—			5,451
Accrued interest	3,046		1,885			—			—			4,931
Deferred revenue	—		—			19,798			—			19,798
Other current liabilities	—		5,793			19,233			—			25,026
Total current liabilities	3,046		15,198			67,841			—			86,085
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS	323,987		648,861			—			—			972,848
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		30,067			(684		)	—			29,383
LONG-TERM LEASE LIABILITY	—		30,130			63,619			—			93,749
OTHER NON-CURRENT LIABILITIES	—		18,498			60,190			—			78,688
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,500,850		1,771,540			3,009,380			(4,780,920		)	1,500,850
Noncontrolling interest	—		—			99,448			—			99,448
TOTAL SHAREHOLDERS’ EQUITY	1,500,850		1,771,540			3,108,828			(4,780,920		)	1,600,298
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$1,827,883		$2,514,294			$3,299,794			($4,780,920	)		$2,861,051

	CONDENSED CONSOLIDATING BALANCE SHEETS
	As of December 31, 2018
	Rayonier Inc. (Parent Issuer)		Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$361		$104,777			$43,236		—				$148,374
Accounts receivable, less allowance for doubtful accounts	—		3,752			22,399			—			26,151
Inventory	—		—			15,703			—			15,703
Prepaid expenses	—		977			16,039			—			17,016
Other current assets	—		108			501			—			609
Total current assets	361		109,614			97,878			—			207,853
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—			2,401,327			—			2,401,327
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS	—		—			85,609			—			85,609
NET PROPERTY, PLANT AND EQUIPMENT	—		16,940			5,811			—			22,751
RESTRICTED CASH	—		—			8,080			—			8,080
INVESTMENT IN SUBSIDIARIES	1,833,899		3,022,875			—			(4,856,774		)	—
INTERCOMPANY RECEIVABLE	49,461		(638,424		)	588,963			—			—
OTHER ASSETS	2		19,244			35,800			—			55,046
TOTAL ASSETS		$1,883,723		$2,530,249			$3,223,468			($4,856,774	)		$2,780,666
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	—			$1,616			$16,403		—				$18,019
Accrued taxes	—		8			3,170			—			3,178
Accrued payroll and benefits	—		5,848			4,568			—			10,416
Accrued interest	3,047		1,960			—			—			5,007
Deferred revenue	—		—			10,447			—			10,447
Other current liabilities	—		216			16,258			—			16,474
Total current liabilities	3,047		9,648			50,846			—			63,541
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS	323,803		648,764			—			—			972,567
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		30,484			(684		)	—			29,800
OTHER NON-CURRENT LIABILITIES	—		7,454			52,754			—			60,208
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,556,873		1,833,899			3,022,875			(4,856,774		)	1,556,873
Noncontrolling interest	—		—			97,677			—			97,677
TOTAL SHAREHOLDERS’ EQUITY	1,556,873		1,833,899			3,120,552			(4,856,774		)	1,654,550
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$1,883,723		$2,530,249			$3,223,468			($4,856,774	)		$2,780,666

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
	Six Months Ended June 30, 2019
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments		Total Consolidated
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES		($14,180	)		$25,406			$105,728		—			$116,954
INVESTING ACTIVITIES
Capital expenditures	—			—			(29,505		)	—		(29,505		)
Real estate development investments	—			—			(999		)	—		(999		)
Purchase of timberlands	—			—			(26,396		)	—		(26,396		)
Investment in subsidiaries	—			832			—			(832	)	—
Other	—			(7,539		)	3,651			—		(3,888		)
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	—			(6,707		)	(53,249		)	(832	)	(60,788		)
FINANCING ACTIVITIES
Dividends paid	(69,798		)	(1,309		)				—		(71,107		)
Proceeds from the issuance of common shares under incentive stock plan	774			—			—			—		774
Repurchase of common shares	(4,241		)	—			—			—		(4,241		)
Other	—			—			133			—		133
Distribution to minority shareholder	—			—			(3,594		)	—		(3,594		)
Intercompany distributions	87,168			(29,293		)	(58,707		)	832		—
CASH USED FOR FINANCING ACTIVITIES	13,903			(30,602		)	(62,168		)	832		(78,035		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			125			—		125
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Change in cash, cash equivalents and restricted cash	(277		)	(11,903		)	(9,564		)	—		(21,744		)
Balance, beginning of year	361			104,777			51,316			—		156,454
Balance, end of period		$84			$92,874			$41,752		—			$134,710

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
	Six Months Ended June 30, 2018
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments		Total Consolidated
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES		($7,491	)		$57,280			$131,794		—			$181,583
INVESTING ACTIVITIES
Capital expenditures	—			(58		)	(25,862		)	—		(25,920		)
Real estate development investments	—			—			(4,501		)	—		(4,501		)
Purchase of timberlands	—			—			(31,234		)	—		(31,234		)
Investment in subsidiaries	—			40,441			—			(40,441	)	—
Other	—			—			113			—		113
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	—			40,383			(61,484		)	(40,441	)	(61,542		)
FINANCING ACTIVITIES
Issuance of debt	—			—			1,014			—		1,014
Repayment of debt	—			(50,000		)	(4,389		)	—		(54,389		)
Dividends paid	(67,053		)	—			—			—		(67,053		)
Proceeds from the issuance of common shares under incentive stock plan	7,824			—			—			—		7,824
Repurchase of common shares	(2,966		)	—			—			—		(2,966		)
Issuance of intercompany notes	(9,000		)	—			9,000			—		—
Intercompany distributions	107,102			(60,741		)	(86,802		)	40,441		—
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	35,907			(110,741		)	(81,177		)	40,441		(115,570		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			(578		)	—		(578		)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Change in cash, cash equivalents and restricted cash	28,416			(13,078		)	(11,445		)	—		3,893
Balance, beginning of year	48,564			25,042			98,750			—		172,356
Balance, end of period		$76,980			$11,964			$87,305		—			$176,249

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BASIS OF PRESENTATION (Policies)

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

BASIS OF PRESENTATION

The unaudited consolidated financial statements and notes thereto of Rayonier Inc. and its subsidiaries (“Rayonier” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). The year-end balance sheet information was derived from audited financial statements not included herein. In the opinion of management, these financial statements and notes reflect any adjustments (all of which are normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. These statements and notes should be read in conjunction with the financial statements and supplementary data included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, as filed with the SEC (the “2018 Form 10-K”).

Leases

ASU 2016-02 (ASC 842)

The Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), on January 1, 2019 and elected to apply the standard as of that day. As such, the Consolidated Balance Sheet as of June 30, 2019 includes right-of-use assets and lease liabilities related to the rights and obligations created by the Company’s long-term leases. Prior periods have not been restated.

The Company applied the following practical expedients in the transition to the new standard as allowed under ASC 842-10-65-1:

Practical Expedient	Description
Reassessment of expired or existing contracts	The Company elected not to reassess, at the application date, whether any expired or existing contracts contained leases, the lease classification for any expired or existing leases, and the accounting for initial direct costs for any existing leases.
Use of hindsight	The Company elected to use hindsight in determining the lease term (that is, when considering options to extend or terminate the lease and to purchase the underlying asset) and in assessing impairment of right-to-use assets.
Reassessment of existing or expired land easements	The Company elected not to evaluate existing or expired land easements that were not previously accounted for as leases under ASC 840, as allowed under the transition practical expedient. Going forward, new or modified land easements will be evaluated under ASU No. 2016-02.

See Note 3 — Leases for additional qualitative and quantitative disclosures required under ASU No. 2016-02.

New Accounting Standards

SUMMARY OF UPDATES TO SIGNIFICANT ACCOUNTING POLICIES

For information on updated significant accounting policies due to the adoption of ASC 842, see Note 3 — Leases. For a full description of our other significant accounting policies, see Note 1 — Basis of Presentation in the 2018 Form 10-K.

RECENTLY ADOPTED STANDARDS

ASU 2016-02 (ASC 842)

The Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842), on January 1, 2019 and elected to apply the standard as of that day. As such, the Consolidated Balance Sheet as of June 30, 2019 includes right-of-use assets and lease liabilities related to the rights and obligations created by the Company’s long-term leases. Prior periods have not been restated.

The Company applied the following practical expedients in the transition to the new standard as allowed under ASC 842-10-65-1:

Practical Expedient	Description
Reassessment of expired or existing contracts	The Company elected not to reassess, at the application date, whether any expired or existing contracts contained leases, the lease classification for any expired or existing leases, and the accounting for initial direct costs for any existing leases.
Use of hindsight	The Company elected to use hindsight in determining the lease term (that is, when considering options to extend or terminate the lease and to purchase the underlying asset) and in assessing impairment of right-to-use assets.
Reassessment of existing or expired land easements	The Company elected not to evaluate existing or expired land easements that were not previously accounted for as leases under ASC 840, as allowed under the transition practical expedient. Going forward, new or modified land easements will be evaluated under ASU No. 2016-02.

See Note 3 — Leases for additional qualitative and quantitative disclosures required under ASU No. 2016-02.

OTHER RECENTLY ADOPTED STANDARDS

The Company adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities in the first quarter ended March 31, 2019 with no material impact on the consolidated financial statements.

The Company adopted ASU No 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting in the first quarter ended March 31, 2019 with no impact on the consolidated financial statements.

NEW ACCOUNTING STANDARDS

During the six months ended June 30, 2019, the Financial Accounting Standards Board (“FASB”) has not issued any Accounting Standard Updates which are expected to have a material retrospective or future effect on the consolidated financial statements.

Subsequent Events

SUBSEQUENT EVENTS

The Company has evaluated events occurring from June 30, 2019 to the date of issuance of these Consolidated Financial Statements for potential recognition or disclosure in the consolidated financial statements. No events were identified that warranted recognition or disclosure.

Revenue Recognition

PERFORMANCE OBLIGATIONS

The Company recognizes revenues when control of promised goods or services (“performance obligations”) is transferred to customers, in an amount that reflects the consideration expected in exchange for those goods or services (“transaction price”). The Company generally satisfies performance obligations within a year of entering into a contract and therefore has applied the disclosure exemption found under ASC 606-10-50-14. Unsatisfied performance obligations as of June 30, 2019 are primarily due to advances on stumpage contracts and unearned license revenue. These performance obligations are expected to be satisfied within the next twelve months. The Company generally collects payment within a year of satisfying performance obligations and therefore has elected not to adjust revenues for a financing component. 

CONTRACT BALANCES

The timing of revenue recognition, invoicing and cash collections results in accounts receivable and deferred revenue (contract liabilities) on the Consolidated Balance Sheets. Accounts receivable are recorded when the Company has an unconditional right to consideration for completed performance under the contract. Contract liabilities relate to payments received in advance of performance under the contract. Contract liabilities are recognized as revenue as (or when) the Company performs under the contract.

Segment Reporting

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 “unallocated interest expense and other.”

Derivatives

Accounting for derivative financial instruments is governed by ASC Topic 815, Derivatives and Hedging, (“ASC 815”). In accordance with ASC 815, the Company records its derivative instruments at fair value as either assets or liabilities in the Consolidated Balance Sheets. Changes in the instruments’ fair value are accounted for based on their intended use. Gains and losses on derivatives that are designated and qualify for cash flow hedge accounting are recorded as a component of accumulated other comprehensive (loss) income (“AOCI”) and reclassified into earnings when the hedged transaction materializes. Gains and losses on derivatives that are designated and qualify for net investment hedge accounting are recorded as a component of AOCI and will not be reclassified into earnings until the Company’s investment in its New Zealand operations is partially or completely liquidated. The ineffective portion of any hedge, changes in the fair value of derivatives not designated as hedging instruments and those which are no longer effective as hedging instruments, are recognized immediately in earnings.

Offsetting Derivatives

OFFSETTING DERIVATIVES

Derivative financial instruments are presented at their gross fair values in the Consolidated Balance Sheets. The Company’s derivative financial instruments are not subject to master netting arrangements, which would allow the right of offset.

Fair Value of Financial Instruments

The fair value of foreign currency exchange contracts is determined by a mark-to-market valuation which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate. The fair value of foreign currency option contracts is based on a mark-to-market calculation using the Black-Scholes option pricing model.

Rayonier uses the following methods and assumptions in estimating the fair value of its financial instruments:

Cash and cash equivalents and Restricted cash — The carrying amount is equal to fair market value.

Debt — The fair value of fixed rate debt is based upon quoted market prices for debt with similar terms and maturities. The variable rate debt adjusts with changes in the market rate, therefore the carrying value approximates fair value.

Interest rate swap agreements — The fair value of interest rate contracts is determined by discounting the expected future cash flows, for each instrument, at prevailing interest rates.

Foreign currency exchange contracts — The fair value of foreign currency exchange contracts is determined by a mark-to-market valuation, which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate.

Foreign currency option contracts — The fair value of foreign currency option contracts is based on a mark-to-market calculation using the Black-Scholes option pricing model.

Carbon option contracts — The fair value of carbon option contracts is determined by a mark-to-market valuation using the Black-Scholes option pricing model, which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate

Consolidation, Subsidiaries or Other Investments, Consolidated Entities

The condensed consolidating financial information below follows the same accounting policies as described in the consolidated financial statements, except for the use of the equity method of accounting to reflect ownership interests in wholly-owned subsidiaries, which are eliminated upon consolidation, and the allocation of certain expenses of Rayonier Inc. incurred for the benefit of its subsidiaries.

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REVENUE (Tables)

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

Contract with Customer, Liabilities

The following table summarizes revenue recognized during the three and six months ended June 30, 2019 and 2018 that was included in the contract liability balance at the beginning of each year:

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Revenue recognized from contract liability balance at the beginning of the year (a)		$3,440		$5,429		$8,796		$11,800

(a)

Revenue recognized was primarily from hunting licenses and the use of advances on pay-as-cut timber sales.

Disaggregation of Revenue by Product

The following tables present our revenue from contracts with customers disaggregated by product type for the three and six months ended June 30, 2019 and 2018:

Three Months Ended	Southern Timber		Pacific Northwest Timber		New Zealand Timber		Real Estate		Trading		Elim.			Total
June 30, 2019
Pulpwood		$19,310		$2,267		$8,581	—			$3,826	—				$33,984
Sawtimber	16,286		15,407		52,427		—		31,377		—			115,497
Hardwood	1,391		—		—		—		—		—			1,391
Total Timber Sales	36,987		17,674		61,008		—		35,203		—			150,872
License Revenue, Primarily From Hunting	4,296		103		142		—		—		—			4,541
Other Non-Timber/Carbon Revenue	4,914		779		977		—		—		—			6,670
Agency Fee Income	—		—		—		—		184		—			184
Total Non-Timber Sales	9,210		882		1,119		—		184		—			11,395
Improved Development	—		—		—		172		—		—			172
Unimproved Development	—		—		—		14,431		—		—			14,431
Rural	—		—		—		6,799		—		—			6,799
Non-strategic / Timberlands	—		—		—		1,123		—		—			1,123
Other	—		—		—		8		—		—			8
Total Real Estate Sales	—		—		—		22,533		—		—			22,533
Revenue from Contracts with Customers	46,197		18,556		62,127		22,533		35,387		—			184,800
Intersegment	—		—		—		—		74		(74		)	—
Total Revenue		$46,197		$18,556		$62,127		$22,533		$35,461		($74	)		$184,800
June 30, 2018
Pulpwood		$20,300		$4,625		$7,788	—			$3,804	—				$36,517
Sawtimber	15,776		26,654		61,219		—		42,162		—			145,811
Hardwood	1,214		—		—		—		—		—			1,214
Total Timber Sales	37,290		31,279		69,007		—		45,966		—			183,542
License Revenue, Primarily from Hunting	3,936		103		142		—		—		—			4,181
Other Non-Timber/Carbon Revenue	6,821		831		504		—		—		—			8,156
Agency Fee Income	—		—		—		—		167		—			167
Total Non-Timber Sales	10,757		934		646		—		167		—			12,504
Improved Development	—		—		—		1,345		—		—			1,345
Rural	—		—		—		4,827		—		—			4,827
Non-strategic / Timberlands	—		—		—		43,688		—		—			43,688
Total Real Estate Sales	—		—		—		49,860		—		—			49,860
Revenue from Contracts with Customers	48,047		32,213		69,653		49,860		46,133		—			245,906
Intersegment	—		—		—		—		29		(29		)	—
Total Revenue		$48,047		$32,213		$69,653		$49,860		$46,162		($29	)		$245,906

Six Months Ended	Southern Timber		Pacific Northwest Timber		New Zealand Timber		Real Estate		Trading		Elim.			Total
June 30, 2019
Pulpwood		$46,109		$5,087		$17,349	—			$8,152	—				$76,697
Sawtimber	39,437		32,684		98,290		—		58,890		—			229,301
Hardwood	2,477		—		—		—		—		—			2,477
Total Timber Sales	88,023		37,771		115,639		—		67,042		—			308,475
License Revenue, Primarily From Hunting	8,420		205		195		—		—		—			8,820
Other Non-Timber/Carbon Revenue	10,600		1,115		3,423		—		—		—			15,138
Agency Fee Income	—		—		—		—		381		—			381
Total Non-Timber Sales	19,020		1,320		3,618		—		381		—			24,339
Improved Development	—		—		—		514		—		—			514
Unimproved Development	—		—		—		15,430		—		—			15,430
Rural	—		—		—		19,464		—		—			19,464
Non-strategic / Timberlands	—		—		—		8,056		—		—			8,056
Other	—		—		—		68		—		—			68
Total Real Estate Sales	—		—		—		43,532		—		—			43,532
Revenue from Contracts with Customers	107,043		39,091		119,257		43,532		67,423		—			376,346
Intersegment	—		—		—		—		103		(103		)	—
Total Revenue		$107,043		$39,091		$119,257		$43,532		$67,526		($103	)		$376,346
June 30, 2018
Pulpwood		$41,904		$8,044		$13,632	—			$8,062	—				$71,642
Sawtimber	31,713		53,721		105,964		—		76,987		—			268,385
Hardwood	1,811		—		—		—		—		—			1,811
Total Timber Sales	75,428		61,765		119,596		—		85,049		—			341,838
License Revenue, Primarily from Hunting	8,024		128		194		—		—		—			8,346
Other Non-Timber/Carbon Revenue	8,183		1,694		2,827		—		—		—			12,704
Agency Fee Income	—		—		—		—		289		—			289
Total Non-Timber Sales	16,207		1,822		3,021		—		289		—			21,339
Improved Development	—		—		—		2,465		—		—			2,465
Unimproved Development	—		—		—		7,446		—		—			7,446
Rural	—		—		—		6,480		—		—			6,480
Non-strategic / Timberlands	—		—		—		69,533		—		—			69,533
Total Real Estate Sales	—		—		—		85,924		—		—			85,924
Revenue from Contracts with Customers	91,635		63,587		122,617		85,924		85,338		—			449,101
Intersegment	—		—		—		—		35		(35		)	—
Total Revenue		$91,635		$63,587		$122,617		$85,924		$85,373		($35	)		$449,101

The following tables present our timber sales disaggregated by contract type for the three and six months ended June 30, 2019 and 2018:

Three Months Ended	Southern Timber		Pacific Northwest Timber		New Zealand Timber		Trading		Total
June 30, 2019
Stumpage Pay-as-Cut		$15,172	—		—		—			$15,172
Stumpage Lump Sum	581		—		—		—		581
Total Stumpage	15,753		—		—		—		15,753
Delivered Wood (Domestic)	17,041		17,674		21,739		2,669		59,123
Delivered Wood (Export)	4,193		—		39,269		32,534		75,996
Total Delivered	21,234		17,674		61,008		35,203		135,119
Total Timber Sales		$36,987		$17,674		$61,008		$35,203		$150,872
June 30, 2018
Stumpage Pay-as-Cut		$19,855	—		—		—			$19,855
Stumpage Lump Sum	256		4,605		—		—		4,861
Total Stumpage	20,111		4,605		—		—		24,716
Delivered Wood (Domestic)	15,166		26,674		25,647		1,567		69,054
Delivered Wood (Export)	2,013		—		43,360		44,399		89,772
Total Delivered	17,179		26,674		69,007		45,966		158,826
Total Timber Sales		$37,290		$31,279		$69,007		$45,966		$183,542

Six Months Ended	Southern Timber		Pacific Northwest Timber		New Zealand Timber		Trading		Total
June 30, 2019
Stumpage Pay-as-Cut		$43,180	—		—		—			$43,180
Stumpage Lump Sum	2,675		—		—		—		2,675
Total Stumpage	45,855		—		—		—		45,855
Delivered Wood (Domestic)	36,379		37,771		42,439		4,793		121,382
Delivered Wood (Export)	5,789		—		73,200		62,249		141,238
Total Delivered	42,168		37,771		115,639		67,042		262,620
Total Timber Sales		$88,023		$37,771		$115,639		$67,042		$308,475
June 30, 2018
Stumpage Pay-as-Cut		$42,364	—		—		—			$42,364
Stumpage Lump Sum	2,074		9,711		—		—		11,785
Total Stumpage	44,438		9,711		—		—		54,149
Delivered Wood (Domestic)	28,543		52,054		45,750		2,504		128,851
Delivered Wood (Export)	2,447		—		73,846		82,545		158,838
Total Delivered	30,990		52,054		119,596		85,049		287,689
Total Timber Sales		$75,428		$61,765		$119,596		$85,049		$341,838

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LEASES (Tables)

6 Months Ended

Jun. 30, 2019

Leases [Abstract]

Operating Lease Maturities

The following table details the Company’s undiscounted lease obligations as of June 30, 2019 by type of lease and year of expiration:

				Year of Expiration
Lease obligations	Total			Remaining 2019		2020		2021		2022		2023		Thereafter
Operating lease liabilities		$202,266			$5,874		$9,642		$9,494		$8,858		$8,318		$160,080
Total Undiscounted Cash Flows		$202,266			$5,874		$9,642		$9,494		$8,858		$8,318		$160,080
Imputed interest	(98,212		)
Balance at June 30, 2019	104,054
Less: Current portion	(10,305		)
Non-current portion at June 30, 2019		$93,749

Lease Cost

The following table details components of the Company’s lease cost for the three and six months ended June 30, 2019:

	Three Months Ended June 30,		Six Months Ended June 30,
Lease Cost Components	2019		2019
Operating lease cost	2,396		4,833
Variable lease cost (a)	81		157
Total lease cost (b)		$2,477		$4,990

(a) The majority of timberland leases are subject to increases or decreases based on either the Consumer Price Index, Producer Price Index or market rates.

(b) Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for these leases are expensed on a straight line basis over the lease term. Short-term lease expense was not material for the three and six months ended June 30,2019. 

The following table details components of the Company’s lease cost for the six months ended June 30, 2019:

	Six Months Ended June 30,
Supplemental cash flow information related to leases:	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	1,493
Investing cash flows from operating leases	3,340
Total cash flows from operating leases		$4,833
Weighted-average remaining lease term in years - operating leases	28
Weighted-average discount rate - operating leases	5		%

The Company applied the following practical expedients upon adoption of the the new standard as allowed under ASC 842:

Practical Expedient	Description
Short-term leases	The Company does not record right-of-use assets or lease liabilities for short-term leases (a lease that at commencement date has a lease term of 12 months or less and does not contain a purchase option that is reasonably certain to be exercised).
Separation of lease and non-lease components	The Company does not separate non-lease components from the associated lease components if they have the same timing and pattern of transfer and, if accounted for separately, would both be classified as an operating lease.

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SEGMENT AND GEOGRAPHICAL INFORMATION (Tables)

6 Months Ended

Jun. 30, 2019

Segment Reporting [Abstract]

Schedule of Segment Reporting Information, by Segment

The following tables summarize the segment information for the three and six months ended June 30, 2019 and 2018:

	Three Months Ended June 30,						Six Months Ended June 30,
SALES	2019			2018			2019			2018
Southern Timber		$46,197			$48,047			$107,043			$91,635
Pacific Northwest Timber	18,556			32,213			39,091			63,587
New Zealand Timber	62,127			69,653			119,257			122,617
Real Estate	22,533			49,860			43,532			85,924
Trading	35,461			46,162			67,526			85,373
Intersegment Eliminations	(74		)	(29		)	(103		)	(35		)
Total		$184,800			$245,906			$376,346			$449,101

	Three Months Ended June 30,						Six Months Ended June 30,
OPERATING INCOME (LOSS)	2019			2018			2019			2018
Southern Timber		$14,741			$15,651			$36,261			$27,878
Pacific Northwest Timber	(3,815		)	5,625			(7,556		)	10,299
New Zealand Timber	12,797			17,768			28,517			33,725
Real Estate	15,468			18,864			25,495			46,918
Trading	(171		)	227			309			376
Corporate and other	(7,627		)	(6,490		)	(13,113		)	(10,476		)
Total Operating Income	31,393			51,645			69,913			108,720
Unallocated interest expense and other	(6,865		)	(5,197		)	(13,242		)	(12,630		)
Total Income before Income Taxes		$24,528			$46,448			$56,671			$96,090

	Three Months Ended June 30,				Six Months Ended June 30,
DEPRECIATION, DEPLETION AND AMORTIZATION	2019		2018		2019		2018
Southern Timber		$12,880		$14,940		$32,608		$30,919
Pacific Northwest Timber	6,045		9,381		12,871		18,885
New Zealand Timber	7,189		8,026		13,508		13,743
Real Estate	1,199		13,739		4,534		16,805
Corporate and other	288		297		572		568
Total		$27,601		$46,383		$64,093		$80,920

	Three Months Ended June 30,				Six Months Ended June 30,
NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT	2019		2018		2019		2018
Real Estate		$1,617		$13,312		$5,647		$14,936
Total		$1,617		$13,312		$5,647		$14,936

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DEBT (Tables)

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Schedule of Long-Term Debt Instruments

Rayonier’s debt consisted of the following at June 30, 2019:

	June 30, 2019
Term Credit Agreement borrowings due 2024 at a variable interest rate of 4.1% at June 30, 2019 (a)		$350,000
Senior Notes due 2022 at a fixed interest rate of 3.75%	325,000
Incremental Term Loan Agreement borrowings due 2026 at a variable interest rate of 4.3% at June 30, 2019 (b)	300,000
Total debt	975,000
Less: Deferred financing costs	(2,152		)
Long-term debt, net of deferred financing costs		$972,848

(a) As of June 30, 2019, the periodic interest rate on the term loan facility was LIBOR plus 1.625%. The Company estimates the effective fixed interest rate on the term loan facility to be approximately 3.3% after consideration of interest rate swaps and estimated patronage refunds.

(b)

As of June 30, 2019, the periodic interest rate on the incremental term loan was LIBOR plus 1.900%. The Company estimates the effective fixed interest rate on the incremental term loan facility to be approximately 2.8% after consideration of interest rate swaps and estimated patronage refunds.

Schedule of Maturities of Long-Term Debt

Principal payments due during the next five years and thereafter are as follows:

2019	—
2020	—
2021	—
2022	325,000
2023	—
Thereafter	650,000
Total Debt		$975,000

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HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (Tables)

6 Months Ended

Jun. 30, 2019

Real Estate [Abstract]

Schedule of Costs for Land, Timber and Real Estate Development

An analysis of higher and better use timberlands and real estate development investments from December 31, 2018 to June 30, 2019 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, 2018		$59,189			$26,420			$85,609
Plus: Current portion (a)	4,239			7,680			11,919
Total Balance at December 31, 2018	63,428			34,100			97,528
Non-cash cost of land and improved development	(1,288		)	(376		)	(1,664		)
Timber depletion from harvesting activities and basis of timber sold in real estate sales	(1,657		)	—			(1,657		)
Capitalized real estate development investments (b)	—			999			999
Capital expenditures (silviculture)	117			—			117
Intersegment transfers	76			—			76
Total Balance at June 30, 2019	60,676			34,723			95,399
Less: Current portion (a)	(3,476		)	(14,851		)	(18,327		)
Non-current portion at June 30, 2019		$57,200			$19,872			$77,072

(a) The current portion of Higher and Better Use Timberlands and Real Estate Development Investments is recorded in Inventory. See Note 17 — Inventory for additional information.

(b)

Capitalized real estate development investments include $0.3 million of capitalized interest.

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COMMITMENTS (Tables)

6 Months Ended

Jun. 30, 2019

Commitments and Contingencies Disclosure [Abstract]

Future Minimum Payments

At June 30, 2019, the future minimum payments under non-cancellable commitments were as follows:

	Development Projects (a)		Pension Contributions (b)		Commitments (c)		Total
Remaining 2019		$1,742		$884		$1,329		$3,955
2020	—		442		619		1,061
2021	—		—		134		134
2022	—		—		3		3
2023	—		—		—		—
Thereafter	—		—		—		—
		$1,742		$1,326		$2,085		$5,153

(a) Consists of payments expected to be made on the Company’s Wildlight development project.

(b) Pension contribution requirements are based on actuarially determined estimates and IRS minimum funding requirements.

(c)

Commitments include payments expected to be made on foreign exchange contracts, timberland deeds and other purchase obligations.

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INCOME TAXES (Tables)

6 Months Ended

Jun. 30, 2019

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense

The following table contains the income tax expense recognized on the Consolidated Statements of Income and Comprehensive Income.

	Three Months Ended  June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Income tax expense		($3,608	)		($7,110	)		($7,958	)		($14,047	)

Schedule of Effective Income Tax Rate Reconciliation

The following table contains the Company’s annualized effective tax rate.

	Six Months Ended June 30,
	2019		2018
Annualized effective tax rate	15.5	%	14.5	%

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GUARANTEES (Tables)

6 Months Ended

Jun. 30, 2019

Guarantees [Abstract]

Schedule of Guarantor Obligations

As of June 30, 2019, the following financial guarantees were outstanding:

Financial Commitments (a)	Maximum Potential Payment
Standby letters of credit (b)		$1,585
Surety bonds (c)	3,377
Total financial commitments		$4,962

(a) The Company has not recorded any liabilities for these financial commitments in the Consolidated Balance Sheets. The guarantees are not subject to measurement, as the guarantees are dependent on the Company’s own performance.

(b) Approximately $0.6 million of the standby letters of credit serve as credit support for infrastructure at the Company’s Wildlight development project. The remaining letters of credit support various insurance related agreements, primarily workers’ compensation. These letters of credit will expire at various dates during 2019 and 2020 and will be renewed as required.

(c)

Rayonier issues surety bonds primarily to secure performance obligations related to various operational activities and to provide collateral for outstanding claims under the Company’s previous workers’ compensation self-insurance programs in Washington and Florida. These surety bonds expire at various dates during 2019 and 2020 and are expected to be renewed as required.

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EARNINGS PER COMMON SHARE (Tables)

6 Months Ended

Jun. 30, 2019

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table provides details of the calculations of basic and diluted earnings per common share:

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Net Income		$20,920			$39,338			$48,713			$82,043
Less: Net income attributable to noncontrolling interest	(2,168		)	(3,080		)	(5,167		)	(5,246		)
Net income attributable to Rayonier Inc.		$18,752			$36,258			$43,546			$76,797
Shares used for determining basic earnings per common share	129,380,282			129,067,325			129,277,490			128,935,003
Dilutive effect of:
Stock options	13,463			103,154			16,580			90,815
Performance and restricted shares	250,170			540,808			403,915			606,760
Shares used for determining diluted earnings per common share	129,643,915			129,711,287			129,697,985			129,632,578
Basic earnings per common share attributable to Rayonier Inc.:		$0.14			$0.28			$0.34			$0.60
Diluted earnings per common share attributable to Rayonier Inc.:		$0.14			$0.28			$0.34			$0.59

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share

	Three Months Ended June 30,		Six Months Ended June 30,
	2019	2018	2019	2018
Anti-dilutive shares excluded from the computations of diluted earnings per share:
Stock options and performance shares	451,258	254,663	444,765	213,241

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Interest Rate Derivatives

The following table contains information on the outstanding interest rate swaps as of June 30, 2019:

Outstanding Interest Rate Swaps (a)
Date Entered Into	Term	Notional Amount		Related Debt Facility	Fixed Rate of Swap		Bank Margin on Debt		Total Effective Interest Rate (b)
August 2015	9 years		$170,000	Term Credit Agreement	2.20	%	1.63	%	3.83	%
August 2015	9 years	180,000		Term Credit Agreement	2.35	%	1.63	%	3.98	%
April 2016	10 years	100,000		Incremental Term Loan	1.60	%	1.90	%	3.50	%
April 2016	10 years	100,000		Incremental Term Loan	1.60	%	1.90	%	3.50	%
July 2016	10 years	100,000		Incremental Term Loan	1.26	%	1.90	%	3.16	%

(a) All interest rate swaps have been designated as interest rate cash flow hedges and qualify for hedge accounting.

(b)

Rate is before estimated patronage payments.

Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance

The following tables demonstrate the impact, gross of tax, of the Company’s derivatives on the Consolidated Statements of Income and Comprehensive Income for the three and six months ended June 30, 2019 and 2018.

		Three Months Ended June 30,
	Income Statement Location	2019			2018
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	Other comprehensive (loss) income		($219	)		($6,630	)
Foreign currency option contracts	Other comprehensive (loss) income	(107		)	(539		)
Interest rate swaps	Other comprehensive (loss) income	(19,284		)	5,690
Derivatives designated as a net investment hedge:
Foreign currency exchange contract	Other comprehensive (loss) income	—			(454		)
Derivatives not designated as hedging instruments:
Foreign currency exchange contracts	Interest and other miscellaneous income, net	152			2,479
Carbon option contracts	Interest and other miscellaneous income, net	12			—

		Six Months Ended June 30,
	Income Statement Location	2019			2018
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	Other comprehensive (loss) income		$900			($5,398	)
Foreign currency option contracts	Other comprehensive (loss) income	(30		)	(359		)
Interest rate swaps	Other comprehensive (loss) income	(30,831		)	21,287
Derivatives designated as a net investment hedge:
Foreign currency exchange contract	Other comprehensive (loss) income	—			(344		)
Derivatives not designated as hedging instruments:
Foreign currency exchange contracts	Interest and other miscellaneous income, net	135			2,608
Carbon option contracts	Interest and other miscellaneous income, net	415			—

Schedule of Notional Amounts of Outstanding Derivative Positions

The following table contains the notional amounts of the derivative financial instruments recorded in the Consolidated Balance Sheets:

	Notional Amount
	June 30, 2019		December 31, 2018
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts		$100,500		$69,950
Foreign currency option contracts	20,000		24,000
Interest rate swaps	650,000		650,000
Derivative not designated as a hedging instrument:
Foreign currency exchange contracts	—		9,396
Carbon options (a)	3,102		2,517

(a)    Notional amount for carbon options is calculated as the number of units outstanding multiplied by the spot price as of June 30, 2019.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The following table contains the fair values of the derivative financial instruments recorded in the Consolidated Balance Sheets:

	Location on Balance Sheet	Fair Value Assets / (Liabilities) (a)
		June 30, 2019			December 31, 2018
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	Other current assets		$304		—
	Other assets	159			—
	Other current liabilities	(1,083		)	(1,569		)
	Other non-current liabilities	(50		)	—
Foreign currency option contracts	Other current assets	123			217
	Other assets	63			102
	Other current liabilities	(37		)	(106		)
	Other non-current liabilities	(33		)	(68		)
Interest rate swaps	Other assets	4,159			23,735
	Other non-current liabilities	(11,256		)	—
Derivative not designated as a hedging instrument:
Foreign currency exchange contracts	Other current assets	—			152
	Other current liabilities	—			(24		)
Carbon options	Other current liabilities	(2		)	(322		)
Total derivative contracts:
Other current assets			$427			$369
Other assets		4,381			23,837
Total derivative assets			$4,808			$24,206
Other current liabilities		(1,122		)	(2,021		)
Other non-current liabilities		(11,339		)	(68		)
Total derivative liabilities			($12,461	)		($2,089	)

(a)    See Note 14 — Fair Value Measurements for further information on the fair value of the Company’s derivatives including their classification within the fair value hierarchy.

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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping

The following table presents the carrying amount and estimated fair values of financial instruments held by the Company at June 30, 2019 and December 31, 2018, using market information and what the Company believes to be appropriate valuation methodologies under GAAP:

	June 30, 2019							December 31, 2018
Asset (Liability) (a)	Carrying Amount			Fair Value				Carrying Amount			Fair Value
				Level 1		Level 2					Level 1		Level 2
Cash and cash equivalents		$130,956			$130,956	—			$148,374			$148,374	—
Restricted cash (b)	3,754			3,754		—		8,080			8,080		—
Long-term debt (c)	(972,848		)	—		(981,500	)	(972,567		)	—		(975,845	)
Interest rate swaps (d)	(7,097		)	—		(7,097	)	23,735			—		23,735
Foreign currency exchange contracts (d)	(670		)	—		(670	)	(1,442		)	—		(1,442	)
Foreign currency option contracts (d)	116			—		116		145			—		145
Carbon option contracts (d)	(2		)	—		(2	)	(322		)	—		(322	)

(a) The Company did not have Level 3 assets or liabilities at June 30, 2019 and December 31, 2018.

(b) Restricted cash represents the proceeds from like-kind exchange sales deposited with a third-party intermediary and cash held in escrow for a real estate sale. See Note 18 — Restricted Cash for additional information.

(c) The carrying amount of long-term debt is presented net of capitalized debt costs on non-revolving debt. See Note 6 — Debt for additional information.

(d)

See Note 13 — Derivative Financial Instruments and Hedging Activities for information regarding the Consolidated Balance Sheets classification of the Company’s derivative financial instruments.

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EMPLOYEE BENEFIT PLANS (Tables)

6 Months Ended

Jun. 30, 2019

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Schedule of Components of Net Periodic Benefit Cost

The net pension and postretirement benefit costs (credit) that have been recorded are shown in the following table:

Components of Net Periodic Benefit Cost (Credit)	Income Statement Location	Pension						Postretirement
		Three Months Ended June 30,						Three Months Ended June 30,
		2019			2018			2019		2018
Service cost	Selling and general expenses	—			—				$1		$2
Interest cost	Interest and other miscellaneous income, net	799			759			13		13
Expected return on plan assets (a)	Interest and other miscellaneous income, net	(777		)	(984		)	—		—
Amortization of losses	Interest and other miscellaneous income, net	112			178			—		—
Net periodic benefit cost (credit)			$134			($47	)		$14		$15

Components of Net Periodic Benefit Cost (Credit)	Income Statement Location	Pension						Postretirement
		Six Months Ended June 30,						Six Months Ended June 30,
		2019			2018			2019		2018
Service cost	Selling and general expenses	—			—				$3		$3
Interest cost	Interest and other miscellaneous income, net	1,599			1,510			27		25
Expected return on plan assets (a)	Interest and other miscellaneous income, net	(1,554		)	(1,968		)	—		—
Amortization of losses	Interest and other miscellaneous income, net	224			338			—		1
Net periodic benefit cost (credit)			$269			($120	)		$30		$29

(a)

The weighted-average expected long-term rate of return on plan assets used in computing 2019 net periodic benefit cost for pension benefits is 5.7%.

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OTHER OPERATING (EXPENSE) INCOME, NET (Tables)

6 Months Ended

Jun. 30, 2019

Other Income and Expenses [Abstract]

Other operating (expense) income, net

Other operating (expense) income, net consisted of the following:

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
Foreign currency (expense) income		($659	)		$1,267			($577	)		$514
Gain on sale or disposal of property and equipment	35			12			56			27
(Loss) gain on foreign currency exchange and option contracts	(60		)	386			(113		)	1,819
Log trading marketing fees	80			62			137			131
Income from the sale of unused Internet Protocol addresses	—			—			—			646
Other expense, net	(1,365		)	(68		)	(1,437		)	(108		)
Total		($1,969	)		$1,659			($1,934	)		$3,029

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INVENTORY (Tables)

6 Months Ended

Jun. 30, 2019

Inventory Disclosure [Abstract]

Schedule of Inventory

As of June 30, 2019 and December 31, 2018, Rayonier’s inventory consisted entirely of finished goods, as follows:

	June 30, 2019		December 31, 2018
Finished goods inventory
Real estate inventory (a)		$18,327		$11,919
Log inventory	5,270		3,784
Total inventory		$23,597		$15,703

(a)    Represents cost of HBU real estate (including capitalized development investments) expected to be sold within 12 months.

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RESTRICTED CASH (Tables)

6 Months Ended

Jun. 30, 2019

Restricted Cash and Investments [Abstract]

Schedule of Restricted Cash

The following table contains the amounts of restricted cash recorded in the Consolidated Balance Sheets and Consolidated Statements of Cash Flows for the six months ended June 30, 2019:

	June 30, 2019
Restricted cash deposited with LKE intermediary	$3,204
Restricted cash held in escrow	550
Total restricted cash shown in the Consolidated Balance Sheets	3,754
Cash and cash equivalents	130,956
Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows	$134,710

Schedule of Cash and Cash Equivalents

The following table contains the amounts of restricted cash recorded in the Consolidated Balance Sheets and Consolidated Statements of Cash Flows for the six months ended June 30, 2019:

	June 30, 2019
Restricted cash deposited with LKE intermediary	$3,204
Restricted cash held in escrow	550
Total restricted cash shown in the Consolidated Balance Sheets	3,754
Cash and cash equivalents	130,956
Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows	$134,710

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ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables)

6 Months Ended

Jun. 30, 2019

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in AOCI by component for the six months ended June 30, 2019 and the year ended December 31, 2018. All amounts are presented net of tax and exclude portions attributable to noncontrolling interest.

	Foreign currency translation (loss) gains			Net investment hedges of New Zealand subsidiary			Cash flow hedges				Employee benefit plans				Total
Balance as of December 31, 2017		$15,975			$1,665			$16,184				($20,407	)			$13,417
Other comprehensive (loss) income before reclassifications	(16,985		)	(344		)	5,944				(1,594		)		(12,979		)
Amounts reclassified from accumulated other comprehensive (loss) income	—			—			(163		)		(36		)		(199		)
Net other comprehensive (loss)/income	(16,985		)	(344		)	5,781				(1,630		)		(13,178		)
Balance as of December 31, 2018		($1,010	)		$1,321			$21,965				($22,037	)			$239
Other comprehensive (loss) income before reclassifications	375			—			(30,211		)	(a)	—				(29,836		)
Amounts reclassified from accumulated other comprehensive (loss) income	—			—			(138		)		224			(b)	86
Net other comprehensive (loss)/income	375			—			(30,349		)		224				(29,750		)
Balance as of June 30, 2019		($635	)		$1,321			($8,384	)			($21,813	)			($29,511	)

(a) Includes $30.8 million of other comprehensive income related to interest rate swaps. See Note 13 — Derivative Financial Instruments and Hedging Activities for additional information.

(b)

This component of other comprehensive income (loss) is included in the computation of net periodic pension and post-retirement costs. See Note 15 — Employee Benefit Plans for additional information.

Reclassification out of Accumulated Other Comprehensive Income

The following table presents details of the amounts reclassified in their entirety from AOCI to net income for the six months ended June 30, 2019 and June 30, 2018:

Details about accumulated other comprehensive (loss) income components	Amount reclassified from accumulated other comprehensive (loss) income						Affected line item in the income statement
	June 30, 2019			June 30, 2018
Realized (gain) on foreign currency exchange contracts		($190	)		($1,654	)	Other operating (expense) income, net
Realized loss (gain) on foreign currency option contracts	(60		)	(165		)	Other operating (expense) income, net
Noncontrolling interest	58			419			Comprehensive (loss) income attributable to noncontrolling interest
Income tax expense from gain on foreign currency contracts	54			391			Income tax expense
Net gain from accumulated other comprehensive income		($138	)		($1,009	)

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CONSOLIDATING FINANCIAL STATEMENTS (Tables)

6 Months Ended

Jun. 30, 2019

Condensed Financial Information Disclosure [Abstract]

Schedule of Consolidating Statements of Income and Comprehensive Income

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME  AND COMPREHENSIVE INCOME
	For the Three Months Ended June 30, 2019
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	—			—				$184,800		—				$184,800
Costs and Expenses
Cost of sales	—			—			(140,454		)	—			(140,454		)
Selling and general expenses	—			(5,660		)	(5,324		)	—			(10,984		)
Other operating expense, net	—			(1,091		)	(878		)	—			(1,969		)
	—			(6,751		)	(146,656		)	—			(153,407		)
OPERATING (LOSS) INCOME	—			(6,751		)	38,144			—			31,393
Interest expense	(3,140		)	(4,769		)	(13		)	—			(7,922		)
Interest and miscellaneous income (expense), net	(457		)	928			586			—			1,057
Equity in income from subsidiaries	22,349			33,071			—			(55,420		)	—
INCOME BEFORE INCOME TAXES	18,752			22,479			38,717			(55,420		)	24,528
Income tax expense	—			(130		)	(3,478		)	—			(3,608		)
NET INCOME	18,752			22,349			35,239			(55,420		)	20,920
Less: Net income attributable to noncontrolling interest	—			—			(2,168		)	—			(2,168		)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	18,752			22,349			33,071			(55,420		)	18,752
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment, net of income tax	(4,305		)	—			(5,604		)	4,305			(5,604		)
Cash flow hedges, net of income tax	(19,465		)	(19,284		)	(235		)	19,465			(19,519		)
Amortization of pension and postretirement plans, net of income tax	112			112			—			(112		)	112
Total other comprehensive (loss) income	(23,658		)	(19,172		)	(5,839		)	23,658			(25,011		)
COMPREHENSIVE (LOSS) INCOME	(4,906		)	3,177			29,400			(31,762		)	(4,091		)
Less: Comprehensive income attributable to noncontrolling interest	—			—			(815		)	—			(815		)
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.		($4,906	)		$3,177			$28,585			($31,762	)		($4,906	)

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME  AND COMPREHENSIVE INCOME
	For the Three Months Ended June 30, 2018
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	—			—				$245,906		—				$245,906
Costs and Expenses
Cost of sales	—			—			(184,418		)	—			(184,418		)
Selling and general expenses	—			(5,471		)	(6,031		)	—			(11,502		)
Other operating (expense) income, net	—			(40		)	1,699			—			1,659
	—			(5,511		)	(188,750		)	—			(194,261		)
OPERATING (LOSS) INCOME	—			(5,511		)	57,156			—			51,645
Interest expense	(3,139		)	(4,900		)	(63		)	—			(8,102		)
Interest and miscellaneous income (expense), net	2,734			746			(575		)	—			2,905
Equity in income from subsidiaries	36,663			46,419			—			(83,082		)	—
INCOME BEFORE INCOME TAXES	36,258			36,754			56,518			(83,082		)	46,448
Income tax expense	—			(91		)	(7,019		)	—			(7,110		)
NET INCOME	36,258			36,663			49,499			(83,082		)	39,338
Less: Net income attributable to noncontrolling interest	—			—			(3,080		)	—			(3,080		)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	36,258			36,663			46,419			(83,082		)	36,258
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment, net of income tax	(22,856		)	341			(30,101		)	22,856			(29,760		)
Cash flow hedges, net of income tax	1,716			5,690			(5,161		)	(1,716		)	529
Amortization of pension and postretirement plans, net of income tax	178			178			—			(178		)	178
Total other comprehensive (loss) income	(20,962		)	6,209			(35,262		)	20,962			(29,053		)
COMPREHENSIVE INCOME	15,296			42,872			14,237			(62,120		)	10,285
Less: Comprehensive loss attributable to noncontrolling interest	—			—			5,011			—			5,011
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.		$15,296			$42,872			$19,248			($62,120	)		$15,296

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME  AND COMPREHENSIVE INCOME
	Six Months Ended June 30, 2019
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	—			—				$376,346		—				$376,346
Costs and Expenses
Cost of sales	—			—			(283,705		)	—			(283,705		)
Selling and general expenses	—			(10,503		)	(10,291		)	—			(20,794		)
Other operating expense, net	—			(1,090		)	(844		)	—			(1,934		)
	—			(11,593		)	(294,840		)	—			(306,433		)
OPERATING (LOSS) INCOME	—			(11,593		)	81,506			—			69,913
Interest expense	(6,278		)	(9,316		)	(38		)	—			(15,632		)
Interest and miscellaneous income (expense), net	(913		)	1,892			1,411			—			2,390
Equity in income from subsidiaries	50,737			70,501			—			(121,238		)	—
INCOME BEFORE INCOME TAXES	43,546			51,484			82,879			(121,238		)	56,671
Income tax expense	—			(747		)	(7,211		)	—			(7,958		)
NET INCOME	43,546			50,737			75,668			(121,238		)	48,713
Less: Net income attributable to noncontrolling interest	—			—			(5,167		)	—			(5,167		)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	43,546			50,737			70,501			(121,238		)	43,546
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment, net of income tax	374			(90		)	520			(375		)	429
Cash flow hedges, net of income tax	(30,349		)	(30,832		)	627			30,349			(30,205		)
Amortization of pension and postretirement plans, net of income tax	224			224			—			(224		)	224
Total other comprehensive (loss) income	(29,751		)	(30,698		)	1,147			29,750			(29,552		)
COMPREHENSIVE INCOME	13,795			20,039			76,815			(91,488		)	19,161
Less: Comprehensive income attributable to noncontrolling interest	—			—			(5,366		)	—			(5,366		)
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.		$13,795			$20,039			$71,449			($91,488	)		$13,795

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME  AND COMPREHENSIVE INCOME
	Six Months Ended June 30, 2018
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	—			—				$449,101		—				$449,101
Costs and Expenses
Cost of sales	—			—			(322,906		)	—			(322,906		)
Selling and general expenses	—			(9,859		)	(10,645		)	—			(20,504		)
Other operating (expense) income, net	(12		)	595			2,446			—			3,029
	(12		)	(9,264		)	(331,105		)	—			(340,381		)
OPERATING (LOSS) INCOME	(12		)	(9,264		)	117,996			—			108,720
Interest expense	(6,278		)	(9,555		)	(322		)	—			(16,155		)
Interest and miscellaneous income (expense), net	5,362			1,511			(3,348		)	—			3,525
Equity in income from subsidiaries	77,725			95,246			—			(172,971		)	—
INCOME BEFORE INCOME TAXES	76,797			77,938			114,326			(172,971		)	96,090
Income tax expense	—			(213		)	(13,834		)	—			(14,047		)
NET INCOME	76,797			77,725			100,492			(172,971		)	82,043
Less: Net income attributable to noncontrolling interest	—			—			(5,246		)	—			(5,246		)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	76,797			77,725			95,246			(172,971		)	76,797
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment, net of income tax	(15,252		)	452			(20,524		)	15,252			(20,072		)
Cash flow hedges, net of income tax	18,097			21,287			(4,144		)	(18,097		)	17,143
Amortization of pension and postretirement plans, net of income tax	338			338			—			(338		)	338
Total other comprehensive (loss) income	3,183			22,077			(24,668		)	(3,183		)	(2,591		)
COMPREHENSIVE INCOME	79,980			99,802			75,824			(176,154		)	79,452
Less: Comprehensive loss attributable to noncontrolling interest	—			—			528			—			528
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.		$79,980			$99,802			$76,352			($176,154	)		$79,980

Schedule of Condensed Consolidating Balance Sheets

	CONDENSED CONSOLIDATING BALANCE SHEETS
	As of June 30, 2019
	Rayonier Inc. (Parent Issuer)		Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$84		$92,874			$37,998		—				$130,956
Accounts receivable, less allowance for doubtful accounts	—		1,919			43,012			—			44,931
Inventory	—		—			23,597			—			23,597
Prepaid expenses	—		2,286			18,295			—			20,581
Other current assets	—		97			593			—			690
Total current assets	84		97,176			123,495			—			220,755
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—			2,392,389			—			2,392,389
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS	—		—			77,072			—			77,072
NET PROPERTY, PLANT AND EQUIPMENT	—		16,439			5,605			—			22,044
RESTRICTED CASH	—		—			3,754			—			3,754
RIGHT-OF-USE ASSETS	—		35,291			68,725			—			104,016
INVESTMENT IN SUBSIDIARIES	1,771,540		3,009,380			—			(4,780,920		)	—
INTERCOMPANY RECEIVABLE	56,257		(644,161		)	587,904			—			—
OTHER ASSETS	2		169			40,850			—			41,021
TOTAL ASSETS		$1,827,883		$2,514,294			$3,299,794			($4,780,920	)		$2,861,051
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	—			$4,227			$20,717		—				$24,944
Accrued taxes	—		170			5,765			—			5,935
Accrued payroll and benefits	—		3,123			2,328			—			5,451
Accrued interest	3,046		1,885			—			—			4,931
Deferred revenue	—		—			19,798			—			19,798
Other current liabilities	—		5,793			19,233			—			25,026
Total current liabilities	3,046		15,198			67,841			—			86,085
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS	323,987		648,861			—			—			972,848
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		30,067			(684		)	—			29,383
LONG-TERM LEASE LIABILITY	—		30,130			63,619			—			93,749
OTHER NON-CURRENT LIABILITIES	—		18,498			60,190			—			78,688
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,500,850		1,771,540			3,009,380			(4,780,920		)	1,500,850
Noncontrolling interest	—		—			99,448			—			99,448
TOTAL SHAREHOLDERS’ EQUITY	1,500,850		1,771,540			3,108,828			(4,780,920		)	1,600,298
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$1,827,883		$2,514,294			$3,299,794			($4,780,920	)		$2,861,051

	CONDENSED CONSOLIDATING BALANCE SHEETS
	As of December 31, 2018
	Rayonier Inc. (Parent Issuer)		Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents		$361		$104,777			$43,236		—				$148,374
Accounts receivable, less allowance for doubtful accounts	—		3,752			22,399			—			26,151
Inventory	—		—			15,703			—			15,703
Prepaid expenses	—		977			16,039			—			17,016
Other current assets	—		108			501			—			609
Total current assets	361		109,614			97,878			—			207,853
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—			2,401,327			—			2,401,327
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS	—		—			85,609			—			85,609
NET PROPERTY, PLANT AND EQUIPMENT	—		16,940			5,811			—			22,751
RESTRICTED CASH	—		—			8,080			—			8,080
INVESTMENT IN SUBSIDIARIES	1,833,899		3,022,875			—			(4,856,774		)	—
INTERCOMPANY RECEIVABLE	49,461		(638,424		)	588,963			—			—
OTHER ASSETS	2		19,244			35,800			—			55,046
TOTAL ASSETS		$1,883,723		$2,530,249			$3,223,468			($4,856,774	)		$2,780,666
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	—			$1,616			$16,403		—				$18,019
Accrued taxes	—		8			3,170			—			3,178
Accrued payroll and benefits	—		5,848			4,568			—			10,416
Accrued interest	3,047		1,960			—			—			5,007
Deferred revenue	—		—			10,447			—			10,447
Other current liabilities	—		216			16,258			—			16,474
Total current liabilities	3,047		9,648			50,846			—			63,541
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS	323,803		648,764			—			—			972,567
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		30,484			(684		)	—			29,800
OTHER NON-CURRENT LIABILITIES	—		7,454			52,754			—			60,208
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,556,873		1,833,899			3,022,875			(4,856,774		)	1,556,873
Noncontrolling interest	—		—			97,677			—			97,677
TOTAL SHAREHOLDERS’ EQUITY	1,556,873		1,833,899			3,120,552			(4,856,774		)	1,654,550
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$1,883,723		$2,530,249			$3,223,468			($4,856,774	)		$2,780,666

Schedule of Condensed Consolidating Statements of Cash Flows

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
	Six Months Ended June 30, 2019
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments		Total Consolidated
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES		($14,180	)		$25,406			$105,728		—			$116,954
INVESTING ACTIVITIES
Capital expenditures	—			—			(29,505		)	—		(29,505		)
Real estate development investments	—			—			(999		)	—		(999		)
Purchase of timberlands	—			—			(26,396		)	—		(26,396		)
Investment in subsidiaries	—			832			—			(832	)	—
Other	—			(7,539		)	3,651			—		(3,888		)
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	—			(6,707		)	(53,249		)	(832	)	(60,788		)
FINANCING ACTIVITIES
Dividends paid	(69,798		)	(1,309		)				—		(71,107		)
Proceeds from the issuance of common shares under incentive stock plan	774			—			—			—		774
Repurchase of common shares	(4,241		)	—			—			—		(4,241		)
Other	—			—			133			—		133
Distribution to minority shareholder	—			—			(3,594		)	—		(3,594		)
Intercompany distributions	87,168			(29,293		)	(58,707		)	832		—
CASH USED FOR FINANCING ACTIVITIES	13,903			(30,602		)	(62,168		)	832		(78,035		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			125			—		125
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Change in cash, cash equivalents and restricted cash	(277		)	(11,903		)	(9,564		)	—		(21,744		)
Balance, beginning of year	361			104,777			51,316			—		156,454
Balance, end of period		$84			$92,874			$41,752		—			$134,710

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
	Six Months Ended June 30, 2018
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments		Total Consolidated
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES		($7,491	)		$57,280			$131,794		—			$181,583
INVESTING ACTIVITIES
Capital expenditures	—			(58		)	(25,862		)	—		(25,920		)
Real estate development investments	—			—			(4,501		)	—		(4,501		)
Purchase of timberlands	—			—			(31,234		)	—		(31,234		)
Investment in subsidiaries	—			40,441			—			(40,441	)	—
Other	—			—			113			—		113
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	—			40,383			(61,484		)	(40,441	)	(61,542		)
FINANCING ACTIVITIES
Issuance of debt	—			—			1,014			—		1,014
Repayment of debt	—			(50,000		)	(4,389		)	—		(54,389		)
Dividends paid	(67,053		)	—			—			—		(67,053		)
Proceeds from the issuance of common shares under incentive stock plan	7,824			—			—			—		7,824
Repurchase of common shares	(2,966		)	—			—			—		(2,966		)
Issuance of intercompany notes	(9,000		)	—			9,000			—		—
Intercompany distributions	107,102			(60,741		)	(86,802		)	40,441		—
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	35,907			(110,741		)	(81,177		)	40,441		(115,570		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			(578		)	—		(578		)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Change in cash, cash equivalents and restricted cash	28,416			(13,078		)	(11,445		)	—		3,893
Balance, beginning of year	48,564			25,042			98,750			—		172,356
Balance, end of period		$76,980			$11,964			$87,305		—			$176,249

XML

REVENUE (Contract Liability) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue recognized from contract liability balance at the beginning of the year	$ 3,440	$ 5,429	$ 8,796	$ 11,800

XML

REVENUE (Disaggregation of Revenue by Product) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	$ 184,800	$ 245,906	$ 376,346	$ 449,101
Total Revenue	184,800	245,906	376,346	449,101
Pulpwood
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	33,984	36,517	76,697	71,642
Sawtimber
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	115,497	145,811	229,301	268,385
Hardwood
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	1,391	1,214	2,477	1,811
Timber
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	150,872	183,542	308,475	341,838
License Revenue, Primarily From Hunting
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	4,541	4,181	8,820	8,346
Other Non-Timber/Carbon Revenue
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	6,670	8,156	15,138	12,704
Agency Fee Income
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	184	167	381	289
Total Non-Timber Sales
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	11,395	12,504	24,339	21,339
Improved Development
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	172	1,345	514	2,465
Unimproved Development
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	14,431		15,430	7,446
Rural
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	6,799	4,827	19,464	6,480
Non-strategic / Timberlands
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	1,123	43,688	8,056	69,533
Other
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	8		68
Real Estate
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	22,533	49,860	43,532	85,924
Operating Segments | Southern Timber
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	46,197	48,047	107,043	91,635
Total Revenue	46,197	48,047	107,043	91,635
Operating Segments | Southern Timber | Pulpwood
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	19,310	20,300	46,109	41,904
Operating Segments | Southern Timber | Sawtimber
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	16,286	15,776	39,437	31,713
Operating Segments | Southern Timber | Hardwood
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	1,391	1,214	2,477	1,811
Operating Segments | Southern Timber | Timber
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	36,987	37,290	88,023	75,428
Operating Segments | Southern Timber | License Revenue, Primarily From Hunting
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	4,296	3,936	8,420	8,024
Operating Segments | Southern Timber | Other Non-Timber/Carbon Revenue
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	4,914	6,821	10,600	8,183
Operating Segments | Southern Timber | Agency Fee Income
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	0	0	0	0
Operating Segments | Southern Timber | Total Non-Timber Sales
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	9,210	10,757	19,020	16,207
Operating Segments | Pacific Northwest Timber
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	18,556	32,213	39,091	63,587
Total Revenue	18,556	32,213	39,091	63,587
Operating Segments | Pacific Northwest Timber | Pulpwood
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	2,267	4,625	5,087	8,044
Operating Segments | Pacific Northwest Timber | Sawtimber
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	15,407	26,654	32,684	53,721
Operating Segments | Pacific Northwest Timber | Hardwood
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	0	0	0	0
Operating Segments | Pacific Northwest Timber | Timber
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	17,674	31,279	37,771	61,765
Operating Segments | Pacific Northwest Timber | License Revenue, Primarily From Hunting
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	103	103	205	128
Operating Segments | Pacific Northwest Timber | Other Non-Timber/Carbon Revenue
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	779	831	1,115	1,694
Operating Segments | Pacific Northwest Timber | Agency Fee Income
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	0	0	0	0
Operating Segments | Pacific Northwest Timber | Total Non-Timber Sales
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	882	934	1,320	1,822
Operating Segments | New Zealand Timber
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	62,127	69,653	119,257	122,617
Total Revenue	62,127	69,653	119,257	122,617
Operating Segments | New Zealand Timber | Pulpwood
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	8,581	7,788	17,349	13,632
Operating Segments | New Zealand Timber | Sawtimber
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	52,427	61,219	98,290	105,964
Operating Segments | New Zealand Timber | Hardwood
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	0	0	0	0
Operating Segments | New Zealand Timber | Timber
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	61,008	69,007	115,639	119,596
Operating Segments | New Zealand Timber | License Revenue, Primarily From Hunting
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	142	142	195	194
Operating Segments | New Zealand Timber | Other Non-Timber/Carbon Revenue
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	977	504	3,423	2,827
Operating Segments | New Zealand Timber | Agency Fee Income
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	0	0	0	0
Operating Segments | New Zealand Timber | Total Non-Timber Sales
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	1,119	646	3,618	3,021
Operating Segments | Real Estate
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	22,533	49,860	43,532	85,924
Total Revenue	22,533	49,860	43,532	85,924
Operating Segments | Real Estate | Improved Development
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	172	1,345	514	2,465
Operating Segments | Real Estate | Unimproved Development
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	14,431		15,430	7,446
Operating Segments | Real Estate | Rural
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	6,799	4,827	19,464	6,480
Operating Segments | Real Estate | Non-strategic / Timberlands
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	1,123	43,688	8,056	69,533
Operating Segments | Real Estate | Other
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	8		68
Operating Segments | Trading
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	35,387	46,133	67,423	85,338
Total Revenue	35,461	46,162	67,526	85,373
Operating Segments | Trading | Pulpwood
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	3,826	3,804	8,152	8,062
Operating Segments | Trading | Sawtimber
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	31,377	42,162	58,890	76,987
Operating Segments | Trading | Hardwood
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	0	0	0	0
Operating Segments | Trading | Timber
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	35,203	45,966	67,042	85,049
Operating Segments | Trading | License Revenue, Primarily From Hunting
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	0	0	0	0
Operating Segments | Trading | Other Non-Timber/Carbon Revenue
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	0	0	0	0
Operating Segments | Trading | Agency Fee Income
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	184	167	381	289
Operating Segments | Trading | Total Non-Timber Sales
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	184	167	381	289
Intersegment Eliminations
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	(74)	(29)	(103)	(35)
Total Revenue	(74)	(29)	(103)	(35)
Intersegment Eliminations | Trading
Disaggregation of Revenue [Line Items]
Revenue from Contracts with Customers	$ 74	$ 29	$ 103	$ 35

XML

REVENUE (Disaggregation of Revenue by Contract Type) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Disaggregation of Revenue [Line Items]
Total Timber Sales	$ 184,800	$ 245,906	$ 376,346	$ 449,101
Stumpage Pay-as-Cut
Disaggregation of Revenue [Line Items]
Total Timber Sales	15,172	19,855	43,180	42,364
Stumpage Lump Sum
Disaggregation of Revenue [Line Items]
Total Timber Sales	581	4,861	2,675	11,785
Total Stumpage
Disaggregation of Revenue [Line Items]
Total Timber Sales	15,753	24,716	45,855	54,149
Total Delivered
Disaggregation of Revenue [Line Items]
Total Timber Sales	135,119	158,826	262,620	287,689
Total Delivered | Delivered Wood (Domestic)
Disaggregation of Revenue [Line Items]
Total Timber Sales	59,123	69,054	121,382	128,851
Total Delivered | Delivered Wood (Export)
Disaggregation of Revenue [Line Items]
Total Timber Sales	75,996	89,772	141,238	158,838
Timber
Disaggregation of Revenue [Line Items]
Total Timber Sales	150,872	183,542	308,475	341,838
Southern Timber | Stumpage Pay-as-Cut
Disaggregation of Revenue [Line Items]
Total Timber Sales	15,172	19,855	43,180	42,364
Southern Timber | Stumpage Lump Sum
Disaggregation of Revenue [Line Items]
Total Timber Sales	581	256	2,675	2,074
Southern Timber | Total Stumpage
Disaggregation of Revenue [Line Items]
Total Timber Sales	15,753	20,111	45,855	44,438
Southern Timber | Total Delivered
Disaggregation of Revenue [Line Items]
Total Timber Sales	21,234	17,179	42,168	30,990
Southern Timber | Total Delivered | Delivered Wood (Domestic)
Disaggregation of Revenue [Line Items]
Total Timber Sales	17,041	15,166	36,379	28,543
Southern Timber | Total Delivered | Delivered Wood (Export)
Disaggregation of Revenue [Line Items]
Total Timber Sales	4,193	2,013	5,789	2,447
Pacific Northwest Timber | Stumpage Pay-as-Cut
Disaggregation of Revenue [Line Items]
Total Timber Sales	0	0	0	0
Pacific Northwest Timber | Stumpage Lump Sum
Disaggregation of Revenue [Line Items]
Total Timber Sales	0	4,605	0	9,711
Pacific Northwest Timber | Total Stumpage
Disaggregation of Revenue [Line Items]
Total Timber Sales	0	4,605	0	9,711
Pacific Northwest Timber | Total Delivered
Disaggregation of Revenue [Line Items]
Total Timber Sales	17,674	26,674	37,771	52,054
Pacific Northwest Timber | Total Delivered | Delivered Wood (Domestic)
Disaggregation of Revenue [Line Items]
Total Timber Sales	17,674	26,674	37,771	52,054
Pacific Northwest Timber | Total Delivered | Delivered Wood (Export)
Disaggregation of Revenue [Line Items]
Total Timber Sales	0	0	0	0
New Zealand Timber | Stumpage Pay-as-Cut
Disaggregation of Revenue [Line Items]
Total Timber Sales	0	0	0	0
New Zealand Timber | Stumpage Lump Sum
Disaggregation of Revenue [Line Items]
Total Timber Sales	0	0	0	0
New Zealand Timber | Total Stumpage
Disaggregation of Revenue [Line Items]
Total Timber Sales	0	0	0	0
New Zealand Timber | Total Delivered
Disaggregation of Revenue [Line Items]
Total Timber Sales	61,008	69,007	115,639	119,596
New Zealand Timber | Total Delivered | Delivered Wood (Domestic)
Disaggregation of Revenue [Line Items]
Total Timber Sales	21,739	25,647	42,439	45,750
New Zealand Timber | Total Delivered | Delivered Wood (Export)
Disaggregation of Revenue [Line Items]
Total Timber Sales	39,269	43,360	73,200	73,846
Trading | Stumpage Pay-as-Cut
Disaggregation of Revenue [Line Items]
Total Timber Sales	0	0	0	0
Trading | Stumpage Lump Sum
Disaggregation of Revenue [Line Items]
Total Timber Sales	0	0	0	0
Trading | Total Stumpage
Disaggregation of Revenue [Line Items]
Total Timber Sales	0	0	0	0
Trading | Total Delivered
Disaggregation of Revenue [Line Items]
Total Timber Sales	35,203	45,966	67,042	85,049
Trading | Total Delivered | Delivered Wood (Domestic)
Disaggregation of Revenue [Line Items]
Total Timber Sales	2,669	1,567	4,793	2,504
Trading | Total Delivered | Delivered Wood (Export)
Disaggregation of Revenue [Line Items]
Total Timber Sales	32,534	44,399	62,249	82,545
Operating Segments | Southern Timber
Disaggregation of Revenue [Line Items]
Total Timber Sales	46,197	48,047	107,043	91,635
Operating Segments | Southern Timber | Timber
Disaggregation of Revenue [Line Items]
Total Timber Sales	36,987	37,290	88,023	75,428
Operating Segments | Pacific Northwest Timber
Disaggregation of Revenue [Line Items]
Total Timber Sales	18,556	32,213	39,091	63,587
Operating Segments | Pacific Northwest Timber | Timber
Disaggregation of Revenue [Line Items]
Total Timber Sales	17,674	31,279	37,771	61,765
Operating Segments | New Zealand Timber
Disaggregation of Revenue [Line Items]
Total Timber Sales	62,127	69,653	119,257	122,617
Operating Segments | New Zealand Timber | Timber
Disaggregation of Revenue [Line Items]
Total Timber Sales	61,008	69,007	115,639	119,596
Operating Segments | Trading
Disaggregation of Revenue [Line Items]
Total Timber Sales	35,387	46,133	67,423	85,338
Operating Segments | Trading | Timber
Disaggregation of Revenue [Line Items]
Total Timber Sales	$ 35,203	$ 45,966	$ 67,042	$ 85,049

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LEASES - Narrative (Details)	6 Months Ended
	Jun. 30, 2019 a lease
United States | Minimum | Timberland Leases
Lessee, Lease, Description [Line Items]
Contract terms, in years	30 years
United States | Maximum | Timberland Leases
Lessee, Lease, Description [Line Items]
Contract terms, in years	65 years
New Zealand | Minimum | Timberland Leases
Lessee, Lease, Description [Line Items]
Contract terms, in years	30 years
New Zealand | Maximum | Timberland Leases
Lessee, Lease, Description [Line Items]
Contract terms, in years	99 years
Matariki Crown Forest Licenses
Lessee, Lease, Description [Line Items]
Operating leases, renewal term	1 year
Matariki Crown Forest Licenses | Timberland Leases
Lessee, Lease, Description [Line Items]
Operating leases, renewal term	35 years
Matariki Crown Forest Licenses | Minimum | Timberland Leases
Lessee, Lease, Description [Line Items]
Lease termination period	35 years
Matariki Crown Forest Licenses | Maximum | Timberland Leases
Lessee, Lease, Description [Line Items]
Lease termination period	45 years
Matariki Crown Forest Licenses | New Zealand
Lessee, Lease, Description [Line Items]
Number of leases under termination notice | lease	2
Leases under termination notice | a	9,000
Number of fixed term forest leases expiring | lease	2
Fixed-term forest leases expiring, Acres | a	3,000
Number of forestry rights under termination notice | lease	2
Forestry rights under termination notice | a	32,000

XML

LEASES - Lease Maturities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Leases [Abstract]
Remaining 2019	$ 5,874
2020	9,642
2021	9,494
2022	8,858
2023	8,318
Thereafter	160,080
Operating lease liabilities	202,266
Imputed interest	(98,212)
Balance at June 30, 2019	104,054
Less: Current portion	(10,305)
Non-current portion at June 30, 2019	$ 93,749	$ 0

XML

LEASES - Lease Cost (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2019
Leases [Abstract]
Operating lease cost	$ 2,396	$ 4,833
Variable lease cost	81	157
Total lease cost	$ 2,477	$ 4,990

XML

LEASES - Supplemental Cash Flow (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($)
Leases [Abstract]
Operating cash flows from operating leases	$ 1,493
Investing cash flows from operating leases	3,340
Total cash flows from operating leases	$ 4,833
Weighted-average remaining lease term in years - operating leases	28 years
Weighted-average discount rate - operating leases	5.00%

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NEW ZEALAND SUBSIDIARY (Details) - Matariki Forestry Group a in Thousands	Jun. 30, 2019 a
Schedule of Equity Method Investments [Line Items]
Acres of timberland owned (acres)	410
Step acquisition percentage equity interest in acquiree	23.00%
Rayonier
Schedule of Equity Method Investments [Line Items]
Ownership percentage	77.00%

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SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Segment Sales) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Segment Reporting Information [Line Items]
SALES	$ 184,800	$ 245,906	$ 376,346	$ 449,101
Operating Segments | Southern Timber
Segment Reporting Information [Line Items]
SALES	46,197	48,047	107,043	91,635
Operating Segments | Pacific Northwest Timber
Segment Reporting Information [Line Items]
SALES	18,556	32,213	39,091	63,587
Operating Segments | New Zealand Timber
Segment Reporting Information [Line Items]
SALES	62,127	69,653	119,257	122,617
Operating Segments | Real Estate
Segment Reporting Information [Line Items]
SALES	22,533	49,860	43,532	85,924
Operating Segments | Trading
Segment Reporting Information [Line Items]
SALES	35,461	46,162	67,526	85,373
Intersegment Eliminations
Segment Reporting Information [Line Items]
SALES	$ (74)	$ (29)	$ (103)	$ (35)

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SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Operating Income (Loss)) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Segment Reporting Information [Line Items]
Total Operating Income	$ 31,393	$ 51,645	$ 69,913	$ 108,720
Unallocated interest expense and other	(6,865)	(5,197)	(13,242)	(12,630)
INCOME BEFORE INCOME TAXES	24,528	46,448	56,671	96,090
Operating Segments | Southern Timber
Segment Reporting Information [Line Items]
Total Operating Income	14,741	15,651	36,261	27,878
Operating Segments | Pacific Northwest Timber
Segment Reporting Information [Line Items]
Total Operating Income	(3,815)	5,625	(7,556)	10,299
Operating Segments | New Zealand Timber
Segment Reporting Information [Line Items]
Total Operating Income	12,797	17,768	28,517	33,725
Operating Segments | Real Estate
Segment Reporting Information [Line Items]
Total Operating Income	15,468	18,864	25,495	46,918
Operating Segments | Trading
Segment Reporting Information [Line Items]
Total Operating Income	(171)	227	309	376
Corporate and other
Segment Reporting Information [Line Items]
Total Operating Income	$ (7,627)	$ (6,490)	$ (13,113)	$ (10,476)

XML

SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Depreciation, Depletion and Amortization) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Segment Reporting Information [Line Items]
DEPRECIATION, DEPLETION AND AMORTIZATION	$ 27,601	$ 46,383	$ 64,093	$ 80,920
Operating Segments | Southern Timber
Segment Reporting Information [Line Items]
DEPRECIATION, DEPLETION AND AMORTIZATION	12,880	14,940	32,608	30,919
Operating Segments | Pacific Northwest Timber
Segment Reporting Information [Line Items]
DEPRECIATION, DEPLETION AND AMORTIZATION	6,045	9,381	12,871	18,885
Operating Segments | New Zealand Timber
Segment Reporting Information [Line Items]
DEPRECIATION, DEPLETION AND AMORTIZATION	7,189	8,026	13,508	13,743
Operating Segments | Real Estate
Segment Reporting Information [Line Items]
DEPRECIATION, DEPLETION AND AMORTIZATION	1,199	13,739	4,534	16,805
Corporate and other
Segment Reporting Information [Line Items]
DEPRECIATION, DEPLETION AND AMORTIZATION	$ 288	$ 297	$ 572	$ 568

XML

SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Non-Cash Cost of Land and Improved Development) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Segment Reporting Information [Line Items]
NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT	$ 1,617	$ 13,312	$ 5,647	$ 14,936
Real Estate
Segment Reporting Information [Line Items]
NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT	$ 1,617	$ 13,312	$ 5,647	$ 14,936

XML

DEBT (Schedule of Long Term Debt) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Total debt	$ 975,000,000
Less: Deferred financing costs	(2,152,000)
Long-term debt, net of deferred financing costs	972,848,000	$ 972,567,000
Term Credit Agreement borrowings due 2024 at a variable interest rate of 4.1% at June 30, 2019
Debt Instrument [Line Items]
Total debt	$ 350,000,000
Effective interest rate	4.10%
Debt instrument, interest rate during period	3.30%
Term Credit Agreement borrowings due 2024 at a variable interest rate of 4.1% at June 30, 2019 | LIBOR
Debt Instrument [Line Items]
Basis points on periodic interest rate	1.625%
Senior Notes due 2022 at a fixed interest rate of 3.75%
Debt Instrument [Line Items]
Total debt	$ 325,000,000
Fixed interest rate	3.75%
Incremental Term Loan Agreement borrowings due 2026 at a variable interest rate of 4.3% at June 30, 2019
Debt Instrument [Line Items]
Total debt	$ 300,000,000
Effective interest rate	4.30%
Debt instrument, interest rate during period	2.80%
Incremental Term Loan Agreement borrowings due 2026 at a variable interest rate of 4.3% at June 30, 2019 | LIBOR
Debt Instrument [Line Items]
Basis points on periodic interest rate	1.90%

XML

DEBT (Schedule of Long Term Maturities) (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Debt Disclosure [Abstract]
2019	$ 0
2020	0
2021	0
2022	325,000
2023	0
Thereafter	650,000
Total Debt	$ 975,000

XML

DEBT (Narrative) (Details) - 6 months ended Jun. 30, 2019 $ in Millions	USD ($)	NZD ($)
Debt Instrument [Line Items]
Proceeds from lines of credit	$ 0
Total debt	975,000,000
Term Credit Agreement
Debt Instrument [Line Items]
Total debt	350,000,000
Revolving Credit Facility borrowings due 2020 | Unsecured Revolving Credit Agreement Expiring 2020
Debt Instrument [Line Items]
Repayments of lines of credit	0
Remaining borrowing capacity	198,400,000
Maximum borrowing capacity	200,000,000
Working Capital Facility
Debt Instrument [Line Items]
Proceeds from lines of credit	0
Repayments of lines of credit	0
Remaining borrowing capacity		$ 20.0
Incremental Term Loan Agreement
Debt Instrument [Line Items]
Total debt	300,000,000
Standby Letters of Credit | Revolving Credit Facility borrowings due 2020 | Unsecured Revolving Credit Agreement Expiring 2020
Debt Instrument [Line Items]
Amount to secure outstanding letters of credit	$ 1,600,000

XML

HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($)
Real Estate, Land and Land Development Costs [Roll Forward]
Non-current portion, Beginning Balance	$ 85,609
Plus: Current portion, Beginning Balance	11,919
Total Balance, Beginning Balance	97,528
Non-cash cost of land and improved development	(1,664)
Timber depletion from harvesting activities and basis of timber sold in real estate sales	(1,657)
Capitalized real estate development investments	999
Capital expenditures (silviculture)	117
Intersegment transfers	76
Total Balance, Ending Balance	95,399
Less: Current portion, Ending Balance	(18,327)
Non-current portion, Ending Balance	77,072
Capitalized interest	300
Land and Timber
Real Estate, Land and Land Development Costs [Roll Forward]
Non-current portion, Beginning Balance	59,189
Plus: Current portion, Beginning Balance	4,239
Total Balance, Beginning Balance	63,428
Non-cash cost of land and improved development	(1,288)
Timber depletion from harvesting activities and basis of timber sold in real estate sales	(1,657)
Capitalized real estate development investments	0
Capital expenditures (silviculture)	117
Intersegment transfers	76
Total Balance, Ending Balance	60,676
Less: Current portion, Ending Balance	(3,476)
Non-current portion, Ending Balance	57,200
Development Investments
Real Estate, Land and Land Development Costs [Roll Forward]
Non-current portion, Beginning Balance	26,420
Plus: Current portion, Beginning Balance	7,680
Total Balance, Beginning Balance	34,100
Non-cash cost of land and improved development	(376)
Timber depletion from harvesting activities and basis of timber sold in real estate sales	0
Capitalized real estate development investments	999
Capital expenditures (silviculture)	0
Intersegment transfers	0
Total Balance, Ending Balance	34,723
Less: Current portion, Ending Balance	(14,851)
Non-current portion, Ending Balance	$ 19,872

XML

COMMITMENTS (Future Minimum Payments) (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Commitments
Remaining 2019	$ 3,955
2020	1,061
2021	134
2022	3
2023	0
Thereafter	0
Commitments, total	5,153
Development Projects
Commitments
Remaining 2019	1,742
2020	0
2021	0
2022	0
2023	0
Thereafter	0
Commitments, total	1,742
Pension Contributions
Commitments
Remaining 2019	884
2020	442
2021	0
2022	0
2023	0
Thereafter	0
Commitments, total	1,326
Commitments
Commitments
Remaining 2019	1,329
2020	619
2021	134
2022	3
2023	0
Thereafter	0
Commitments, total	$ 2,085

XML

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Tax Disclosure [Abstract]
Income tax expense	$ 3,608	$ 7,110	$ 7,958	$ 14,047
Annualized effective tax rate			15.50%	14.50%

XML

GUARANTEES (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Guarantor Obligations [Line Items]
Maximum Potential Payment	$ 4,962
Standby letters of credit
Guarantor Obligations [Line Items]
Maximum Potential Payment	1,585
Letter of credit for development project	600
Surety bonds
Guarantor Obligations [Line Items]
Maximum Potential Payment	$ 3,377

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EARNINGS PER COMMON SHARE (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Earnings Per Share [Abstract]
Net income	$ 20,920	$ 27,793	$ 39,338	$ 42,706	$ 48,713	$ 82,043
Less: Net income attributable to noncontrolling interest	(2,168)		(3,080)		(5,167)	(5,246)
Net income attributable to Rayonier Inc.	$ 18,752		$ 36,258		$ 43,546	$ 76,797
Shares used for determining basic earnings per common share (in shares)	129,380,282		129,067,325		129,277,490	128,935,003
Dilutive effect of:
Stock options (in shares)	13,463		103,154		16,580	90,815
Performance and restricted shares (in shares)	250,170		540,808		403,915	606,760
Shares used for determining diluted earnings per common share (in shares)	129,643,915		129,711,287		129,697,985	129,632,578
Basic earnings per common share attributable to Rayonier Inc. (in dollars per share)	$ 0.14		$ 0.28		$ 0.34	$ 0.60
Diluted earnings per common share attributable to Rayonier Inc. (in dollars per share)	$ 0.14		$ 0.28		$ 0.34	$ 0.59

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EARNINGS PER COMMON SHARE (Antidilutive Securities) (Details) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Stock options and performance shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive shares excluded from the computations of diluted earnings per share (in shares)	451,258	254,663	444,765	213,241

XML

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Derivatives designated as cash flow hedges: | Designated as Hedging Instrument
Derivative [Line Items]
AOCI gain (loss) balance expected to be reclassified in next twelve months, net of tax			$ (500)
New Zealand JV | Forecasted Sales and Purchases, term 1
Derivative [Line Items]
Length of time, foreign currency cash flow hedge			3 months
New Zealand JV | Minimum
Derivative [Line Items]
Percent of forecast sales and purchases hedged for 3 months	35.00%		35.00%
Percent of forecast sales and purchases hedged for three to 12 months	25.00%		25.00%
New Zealand JV | Minimum | Forecasted Sales and Purchases, term 1
Derivative [Line Items]
Length of time, foreign currency cash flow hedge			3 months
New Zealand JV | Minimum | Forecasted Sales and Purchases, term 2
Derivative [Line Items]
Length of time, foreign currency cash flow hedge			12 months
New Zealand JV | Maximum
Derivative [Line Items]
Percent of forecast sales and purchases hedged for 3 months	90.00%		90.00%
Percent of forecast sales and purchases hedged for three to 12 months	75.00%		75.00%
Percent of forecast sales and purchases hedged for 12 to 18 months	50.00%		50.00%
New Zealand JV | Maximum | Forecasted Sales and Purchases, term 1
Derivative [Line Items]
Length of time, foreign currency cash flow hedge			12 months
New Zealand JV | Maximum | Forecasted Sales and Purchases, term 2
Derivative [Line Items]
Length of time, foreign currency cash flow hedge			18 months
Interest and other miscellaneous income, net | Derivatives not designated as hedging instruments: | Carbon option
Derivative [Line Items]
Non-designated hedged item, gain (loss) recognized in income	$ 12	$ 0	$ 415	$ 0

XML

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Interest Rate Swaps) (Details) - Derivatives designated as cash flow hedges: - Designated as Hedging Instrument	6 Months Ended
	Jun. 30, 2019 USD ($)
Interest Rate Swap 1
Derivative [Line Items]
Term	9 years
Notional Amount	$ 170,000
Fixed Rate of Swap	2.20%
Bank Margin on Debt	1.63%
Total Effective Interest Rate	3.83%
Interest Rate Swap 2
Derivative [Line Items]
Term	9 years
Notional Amount	$ 180,000
Fixed Rate of Swap	2.35%
Bank Margin on Debt	1.63%
Total Effective Interest Rate	3.98%
Interest Rate Swap 3
Derivative [Line Items]
Term	10 years
Notional Amount	$ 100,000
Fixed Rate of Swap	1.60%
Bank Margin on Debt	1.90%
Total Effective Interest Rate	3.50%
Interest Rate Swap 4
Derivative [Line Items]
Term	10 years
Notional Amount	$ 100,000
Fixed Rate of Swap	1.60%
Bank Margin on Debt	1.90%
Total Effective Interest Rate	3.50%
Interest Rate Swap 5
Derivative [Line Items]
Term	10 years
Notional Amount	$ 100,000
Fixed Rate of Swap	1.26%
Bank Margin on Debt	1.90%
Total Effective Interest Rate	3.16%

XML

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Income Statement Location) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Designated as Hedging Instrument | Foreign currency exchange contracts | Derivatives designated as cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Designated hedged item, gain (loss) recognized in other comprehensive income	$ (219)	$ (6,630)	$ 900	$ (5,398)
Designated as Hedging Instrument | Foreign currency exchange contracts | Derivatives designated as a net investment hedge:
Derivative Instruments, Gain (Loss) [Line Items]
Designated hedged item, gain (loss) recognized in other comprehensive income	0	(454)	0	(344)
Designated as Hedging Instrument | Foreign currency option contracts | Derivatives designated as cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Designated hedged item, gain (loss) recognized in other comprehensive income	(107)	(539)	(30)	(359)
Designated as Hedging Instrument | Interest rate swaps | Derivatives designated as cash flow hedges:
Derivative Instruments, Gain (Loss) [Line Items]
Designated hedged item, gain (loss) recognized in other comprehensive income	(19,284)	5,690	(30,831)	21,287
Derivatives not designated as hedging instruments: | Foreign currency exchange contracts | Interest and other miscellaneous income, net
Derivative Instruments, Gain (Loss) [Line Items]
Non-designated hedged item, gain (loss) recognized in income	152	2,479	135	2,608
Derivatives not designated as hedging instruments: | Carbon options | Interest and other miscellaneous income, net
Derivative Instruments, Gain (Loss) [Line Items]
Non-designated hedged item, gain (loss) recognized in income	$ 12	$ 0	$ 415	$ 0

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Notional Amounts) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Designated as Hedging Instrument | Derivatives designated as cash flow hedges: | Foreign currency exchange contracts
Derivatives, Fair Value [Line Items]
Notional Amount	$ 100,500	$ 69,950
Designated as Hedging Instrument | Derivatives designated as cash flow hedges: | Foreign currency option contracts
Derivatives, Fair Value [Line Items]
Notional Amount	20,000	24,000
Designated as Hedging Instrument | Derivatives designated as cash flow hedges: | Interest rate swaps
Derivatives, Fair Value [Line Items]
Notional Amount	650,000	650,000
Derivatives not designated as hedging instruments: | Foreign currency exchange contracts
Derivatives, Fair Value [Line Items]
Notional Amount	0	9,396
Derivatives not designated as hedging instruments: | Carbon option
Derivatives, Fair Value [Line Items]
Notional Amount	$ 3,102	$ 2,517

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DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Balance Sheet Location) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Derivatives, Fair Value [Line Items]
Fair value, derivative asset	$ 4,808	$ 24,206
Fair value, derivative liability	(12,461)	(2,089)
Other current assets
Derivatives, Fair Value [Line Items]
Fair value, derivative asset	427	369
Other assets
Derivatives, Fair Value [Line Items]
Fair value, derivative asset	4,381	23,837
Other current liabilities
Derivatives, Fair Value [Line Items]
Fair value, derivative liability	(1,122)	(2,021)
Other non-current liabilities
Derivatives, Fair Value [Line Items]
Fair value, derivative liability	(11,339)	(68)
Designated as Hedging Instrument | Derivatives designated as cash flow hedges: | Foreign currency exchange contracts | Other current assets
Derivatives, Fair Value [Line Items]
Fair value, derivative asset	304	0
Designated as Hedging Instrument | Derivatives designated as cash flow hedges: | Foreign currency exchange contracts | Other assets
Derivatives, Fair Value [Line Items]
Fair value, derivative asset	159	0
Designated as Hedging Instrument | Derivatives designated as cash flow hedges: | Foreign currency exchange contracts | Other current liabilities
Derivatives, Fair Value [Line Items]
Fair value, derivative liability	(1,083)	(1,569)
Designated as Hedging Instrument | Derivatives designated as cash flow hedges: | Foreign currency exchange contracts | Other non-current liabilities
Derivatives, Fair Value [Line Items]
Fair value, derivative liability	(50)	0
Designated as Hedging Instrument | Derivatives designated as cash flow hedges: | Foreign currency option contracts | Other current assets
Derivatives, Fair Value [Line Items]
Fair value, derivative asset	123	217
Designated as Hedging Instrument | Derivatives designated as cash flow hedges: | Foreign currency option contracts | Other assets
Derivatives, Fair Value [Line Items]
Fair value, derivative asset	63	102
Designated as Hedging Instrument | Derivatives designated as cash flow hedges: | Foreign currency option contracts | Other current liabilities
Derivatives, Fair Value [Line Items]
Fair value, derivative liability	(37)	(106)
Designated as Hedging Instrument | Derivatives designated as cash flow hedges: | Foreign currency option contracts | Other non-current liabilities
Derivatives, Fair Value [Line Items]
Fair value, derivative liability	(33)	(68)
Designated as Hedging Instrument | Derivatives designated as cash flow hedges: | Interest rate swaps | Other assets
Derivatives, Fair Value [Line Items]
Fair value, derivative asset	4,159	23,735
Designated as Hedging Instrument | Derivatives designated as cash flow hedges: | Interest rate swaps | Other non-current liabilities
Derivatives, Fair Value [Line Items]
Fair value, derivative liability	(11,256)	0
Derivatives not designated as hedging instruments: | Foreign currency exchange contracts | Other current assets
Derivatives, Fair Value [Line Items]
Fair value, derivative asset	0	152
Derivatives not designated as hedging instruments: | Foreign currency exchange contracts | Other current liabilities
Derivatives, Fair Value [Line Items]
Fair value, derivative liability	0	(24)
Derivatives not designated as hedging instruments: | Carbon options | Other current liabilities
Derivatives, Fair Value [Line Items]
Fair value, derivative liability	$ (2)	$ (322)

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FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carbon option contracts	$ 12,461	$ 2,089
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	130,956	148,374
Restricted cash	3,754	8,080
Long-term debt	(972,848)	(972,567)
Carrying Amount | Interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps, liabilities	(7,097)
Interest rate swaps, assets		23,735
Carrying Amount | Foreign currency exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency exchange contracts	(670)	(1,442)
Carrying Amount | Foreign currency option contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency option contracts	116	145
Carrying Amount | Carbon option contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carbon option contracts	(2)	(322)
Fair Value | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	130,956	148,374
Restricted cash	3,754	8,080
Long-term debt	0	0
Fair Value | Level 1 | Interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps, liabilities	0
Interest rate swaps, assets		0
Fair Value | Level 1 | Foreign currency exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency exchange contracts	0	0
Fair Value | Level 1 | Foreign currency option contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency option contracts	0	0
Fair Value | Level 1 | Carbon option contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carbon option contracts	0	0
Fair Value | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0	0
Restricted cash	0	0
Long-term debt	(981,500)	(975,845)
Fair Value | Level 2 | Interest rate swaps
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest rate swaps, liabilities	(7,097)
Interest rate swaps, assets		23,735
Fair Value | Level 2 | Foreign currency exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency exchange contracts	(670)	(1,442)
Fair Value | Level 2 | Foreign currency option contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign currency option contracts	116	145
Fair Value | Level 2 | Carbon option contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carbon option contracts	$ (2)	$ (322)

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EMPLOYEE BENEFIT PLANS (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019 USD ($)	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) pension_plan	Jun. 30, 2018 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Number of qualified defined benefit plans | pension_plan			1
Weighted-average expected long-term rate of return on plan assets			5.70%
Pension
Defined Benefit Plan Disclosure [Line Items]
Pension contributions paid			$ 400
Minimum annual pension contribution	$ 1,300		1,300
Service cost	0	$ 0	0	$ 0
Interest cost	799	759	1,599	1,510
Expected return on plan assets	(777)	(984)	(1,554)	(1,968)
Amortization of losses	112	178	224	338
Net periodic benefit cost (credit)	134	(47)	269	(120)
Postretirement
Defined Benefit Plan Disclosure [Line Items]
Service cost	1	2	3	3
Interest cost	13	13	27	25
Expected return on plan assets	0	0	0	0
Amortization of losses	0	0	0	1
Net periodic benefit cost (credit)	$ 14	$ 15	$ 30	$ 29

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OTHER OPERATING (EXPENSE) INCOME, NET (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Other Income and Expenses [Abstract]
Foreign currency (expense) income	$ (659)	$ 1,267	$ (577)	$ 514
Gain on sale or disposal of property and equipment	35	12	56	27
(Loss) gain on foreign currency exchange and option contracts	(60)	386	(113)	1,819
Log trading marketing fees	80	62	137	131
Income from the sale of unused Internet Protocol addresses	0	0	0	646
Other expense, net	(1,365)	(68)	(1,437)	(108)
Total	$ (1,969)	$ 1,659	$ (1,934)	$ 3,029

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INVENTORY (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Inventory [Line Items]
Inventory	$ 23,597	$ 15,703
Real estate inventory
Inventory [Line Items]
Inventory	18,327	11,919
Log inventory
Inventory [Line Items]
Inventory	$ 5,270	$ 3,784

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RESTRICTED CASH - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Restricted Cash and Investments [Abstract]
Maximum time period proceeds from LKE sale maintained with third party intermediary, days	180 days
Restricted deposits	$ 3.8	$ 8.1

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RESTRICTED CASH - Schedule of Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018	Dec. 31, 2017
Restricted Cash and Cash Equivalents Items [Line Items]
Total restricted cash shown in the Consolidated Balance Sheets	$ 3,754	$ 8,080
Cash and cash equivalents	130,956	148,374
Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows	134,710	$ 156,454	$ 176,249	$ 172,356
Restricted cash deposited with LKE intermediary
Restricted Cash and Cash Equivalents Items [Line Items]
Total restricted cash shown in the Consolidated Balance Sheets	3,204
Restricted cash held in escrow
Restricted Cash and Cash Equivalents Items [Line Items]
Total restricted cash shown in the Consolidated Balance Sheets	$ 550

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ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Schedule of Components) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	$ 1,556,873
Other comprehensive (loss) income before reclassifications	(29,836)	$ (12,979)
Amounts reclassified from accumulated other comprehensive (loss) income	86	(199)
Net other comprehensive (loss)/income	(29,750)	(13,178)
Ending balance	1,500,850	1,556,873
Accumulated Other Comprehensive (Loss) Income
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	239	13,417
Ending balance	(29,511)	239
Foreign currency translation (loss) gains
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(1,010)	15,975
Other comprehensive (loss) income before reclassifications	375	(16,985)
Amounts reclassified from accumulated other comprehensive (loss) income	0	0
Net other comprehensive (loss)/income	375	(16,985)
Ending balance	(635)	(1,010)
Net investment hedges of New Zealand subsidiary
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	1,321	1,665
Other comprehensive (loss) income before reclassifications	0	(344)
Amounts reclassified from accumulated other comprehensive (loss) income	0	0
Net other comprehensive (loss)/income	0	(344)
Ending balance	1,321	1,321
Cash flow hedges
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	21,965	16,184
Other comprehensive (loss) income before reclassifications	(30,211)	5,944
Amounts reclassified from accumulated other comprehensive (loss) income	(138)	(163)
Net other comprehensive (loss)/income	(30,349)	5,781
Ending balance	(8,384)	21,965
Cash flow hedges | Interest rate swaps
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Other comprehensive (loss) income before reclassifications	30,800
Employee benefit plans
Accumulated Other Comprehensive Income (Loss) [Roll Forward]
Beginning balance	(22,037)	(20,407)
Other comprehensive (loss) income before reclassifications	0	(1,594)
Amounts reclassified from accumulated other comprehensive (loss) income	224	(36)
Net other comprehensive (loss)/income	224	(1,630)
Ending balance	$ (21,813)	$ (22,037)

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ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Reclassified AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other operating (expense) income, net	$ (1,969)	$ 1,659	$ (1,934)	$ 3,029
Comprehensive (loss) income attributable to noncontrolling interest	(815)	5,011	(5,366)	528
Income tax expense	$ (3,608)	$ (7,110)	(7,958)	(14,047)
Net gain from accumulated other comprehensive income			86		$ (199)
Cash flow hedges
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net gain from accumulated other comprehensive income			(138)	(1,009)
Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Comprehensive (loss) income attributable to noncontrolling interest			58	419
Income tax expense			54	391
Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Realized (gain) on foreign currency exchange contracts
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other operating (expense) income, net			(190)	(1,654)
Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Realized loss (gain) on foreign currency option contracts
Accumulated Other Comprehensive Income (Loss) [Line Items]
Other operating (expense) income, net			$ (60)	$ (165)

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CONSOLIDATING FINANCIAL STATEMENTS (Narrative) (Details) - Senior Notes due 2022 at a fixed interest rate of 3.75%	Mar. 31, 2012 USD ($)
Debt Instrument [Line Items]
Face amount	$ 325,000,000
Stated interest rate	3.75%

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CONSOLIDATING FINANCIAL STATEMENTS (Income and Comprehensive Income) (Details) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018	Jun. 30, 2019	Jun. 30, 2018
Condensed Statement of Income Captions [Line Items]
SALES	$ 184,800		$ 245,906		$ 376,346	$ 449,101
Costs and Expenses
Cost of sales	(140,454)		(184,418)		(283,705)	(322,906)
Selling and general expenses	(10,984)		(11,502)		(20,794)	(20,504)
Other operating (expense) income, net	(1,969)		1,659		(1,934)	3,029
Costs and Expenses, Total	(153,407)		(194,261)		(306,433)	(340,381)
OPERATING INCOME	31,393		51,645		69,913	108,720
Interest expense	(7,922)		(8,102)		(15,632)	(16,155)
Interest and miscellaneous income (expense), net	1,057		2,905		2,390	3,525
Equity in income from subsidiaries	0		0		0	0
INCOME BEFORE INCOME TAXES	24,528		46,448		56,671	96,090
Income tax expense	(3,608)		(7,110)		(7,958)	(14,047)
NET INCOME	20,920	$ 27,793	39,338	$ 42,706	48,713	82,043
Less: Net income attributable to noncontrolling interest	(2,168)		(3,080)		(5,167)	(5,246)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	18,752		36,258		43,546	76,797
Foreign currency translation adjustment, net of income tax	(5,604)	6,033	(29,760)	9,688	429	(20,072)
Cash flow hedges, net of income tax	(19,519)	(10,686)	529	16,615	(30,205)	17,143
Amortization of pension and postretirement plans, net of income tax	112	$ 112	178	$ 159	224	338
Total other comprehensive (loss) income	(25,011)		(29,053)		(29,552)	(2,591)
COMPREHENSIVE (LOSS) INCOME	(4,091)		10,285		19,161	79,452
Less: Comprehensive (income) loss attributable to noncontrolling interest	(815)		5,011		(5,366)	528
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC.	(4,906)		15,296		13,795	79,980
Consolidating Adjustments
Condensed Statement of Income Captions [Line Items]
SALES	0		0		0	0
Costs and Expenses
Cost of sales	0		0		0	0
Selling and general expenses	0		0		0	0
Other operating (expense) income, net	0		0		0	0
Costs and Expenses, Total	0		0		0	0
OPERATING INCOME	0		0		0	0
Interest expense	0		0		0	0
Interest and miscellaneous income (expense), net	0		0		0	0
Equity in income from subsidiaries	(55,420)		(83,082)		(121,238)	(172,971)
INCOME BEFORE INCOME TAXES	(55,420)		(83,082)		(121,238)	(172,971)
Income tax expense	0		0		0	0
NET INCOME	(55,420)		(83,082)		(121,238)	(172,971)
Less: Net income attributable to noncontrolling interest	0		0		0	0
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	(55,420)		(83,082)		(121,238)	(172,971)
Foreign currency translation adjustment, net of income tax	4,305		22,856		(375)	15,252
Cash flow hedges, net of income tax	19,465		(1,716)		30,349	(18,097)
Amortization of pension and postretirement plans, net of income tax	(112)		(178)		(224)	(338)
Total other comprehensive (loss) income	23,658		20,962		29,750	(3,183)
COMPREHENSIVE (LOSS) INCOME	(31,762)		(62,120)		(91,488)	(176,154)
Less: Comprehensive (income) loss attributable to noncontrolling interest	0		0		0	0
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC.	(31,762)		(62,120)		(91,488)	(176,154)
Rayonier Inc. (Parent Issuer) | Reportable Legal Entities
Condensed Statement of Income Captions [Line Items]
SALES	0		0		0	0
Costs and Expenses
Cost of sales	0		0		0	0
Selling and general expenses	0		0		0	0
Other operating (expense) income, net	0		0		0	(12)
Costs and Expenses, Total	0		0		0	(12)
OPERATING INCOME	0		0		0	(12)
Interest expense	(3,140)		(3,139)		(6,278)	(6,278)
Interest and miscellaneous income (expense), net	(457)		2,734		(913)	5,362
Equity in income from subsidiaries	22,349		36,663		50,737	77,725
INCOME BEFORE INCOME TAXES	18,752		36,258		43,546	76,797
Income tax expense	0		0		0	0
NET INCOME	18,752		36,258		43,546	76,797
Less: Net income attributable to noncontrolling interest	0		0		0	0
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	18,752		36,258		43,546	76,797
Foreign currency translation adjustment, net of income tax	(4,305)		(22,856)		374	(15,252)
Cash flow hedges, net of income tax	(19,465)		1,716		(30,349)	18,097
Amortization of pension and postretirement plans, net of income tax	112		178		224	338
Total other comprehensive (loss) income	(23,658)		(20,962)		(29,751)	3,183
COMPREHENSIVE (LOSS) INCOME	(4,906)		15,296		13,795	79,980
Less: Comprehensive (income) loss attributable to noncontrolling interest	0		0		0	0
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC.	(4,906)		15,296		13,795	79,980
Subsidiary Guarantors | Reportable Legal Entities
Condensed Statement of Income Captions [Line Items]
SALES	0		0		0	0
Costs and Expenses
Cost of sales	0		0		0	0
Selling and general expenses	(5,660)		(5,471)		(10,503)	(9,859)
Other operating (expense) income, net	(1,091)		(40)		(1,090)	595
Costs and Expenses, Total	(6,751)		(5,511)		(11,593)	(9,264)
OPERATING INCOME	(6,751)		(5,511)		(11,593)	(9,264)
Interest expense	(4,769)		(4,900)		(9,316)	(9,555)
Interest and miscellaneous income (expense), net	928		746		1,892	1,511
Equity in income from subsidiaries	33,071		46,419		70,501	95,246
INCOME BEFORE INCOME TAXES	22,479		36,754		51,484	77,938
Income tax expense	(130)		(91)		(747)	(213)
NET INCOME	22,349		36,663		50,737	77,725
Less: Net income attributable to noncontrolling interest	0		0		0	0
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	22,349		36,663		50,737	77,725
Foreign currency translation adjustment, net of income tax	0		341		(90)	452
Cash flow hedges, net of income tax	(19,284)		5,690		(30,832)	21,287
Amortization of pension and postretirement plans, net of income tax	112		178		224	338
Total other comprehensive (loss) income	(19,172)		6,209		(30,698)	22,077
COMPREHENSIVE (LOSS) INCOME	3,177		42,872		20,039	99,802
Less: Comprehensive (income) loss attributable to noncontrolling interest	0		0		0	0
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC.	3,177		42,872		20,039	99,802
Non- guarantors | Reportable Legal Entities
Condensed Statement of Income Captions [Line Items]
SALES	184,800		245,906		376,346	449,101
Costs and Expenses
Cost of sales	(140,454)		(184,418)		(283,705)	(322,906)
Selling and general expenses	(5,324)		(6,031)		(10,291)	(10,645)
Other operating (expense) income, net	(878)		1,699		(844)	2,446
Costs and Expenses, Total	(146,656)		(188,750)		(294,840)	(331,105)
OPERATING INCOME	38,144		57,156		81,506	117,996
Interest expense	(13)		(63)		(38)	(322)
Interest and miscellaneous income (expense), net	586		(575)		1,411	(3,348)
Equity in income from subsidiaries	0		0		0	0
INCOME BEFORE INCOME TAXES	38,717		56,518		82,879	114,326
Income tax expense	(3,478)		(7,019)		(7,211)	(13,834)
NET INCOME	35,239		49,499		75,668	100,492
Less: Net income attributable to noncontrolling interest	(2,168)		(3,080)		(5,167)	(5,246)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	33,071		46,419		70,501	95,246
Foreign currency translation adjustment, net of income tax	(5,604)		(30,101)		520	(20,524)
Cash flow hedges, net of income tax	(235)		(5,161)		627	(4,144)
Amortization of pension and postretirement plans, net of income tax	0		0		0	0
Total other comprehensive (loss) income	(5,839)		(35,262)		1,147	(24,668)
COMPREHENSIVE (LOSS) INCOME	29,400		14,237		76,815	75,824
Less: Comprehensive (income) loss attributable to noncontrolling interest	(815)		5,011		(5,366)	528
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC.	$ 28,585		$ 19,248		$ 71,449	$ 76,352

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CONSOLIDATING FINANCIAL STATEMENTS (Balance Sheets) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017
CURRENT ASSETS
Cash and cash equivalents	$ 130,956		$ 148,374
Accounts receivable, less allowance for doubtful accounts	44,931		26,151
Inventory	23,597		15,703
Prepaid expenses	20,581		17,016
Other current assets	690		609
Total current assets	220,755		207,853
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	2,392,389		2,401,327
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS	77,072		85,609
NET PROPERTY, PLANT AND EQUIPMENT	22,044		22,751
RESTRICTED CASH	3,754		8,080
RIGHT-OF-USE ASSETS	104,016		0
INVESTMENT IN SUBSIDIARIES	0		0
INTERCOMPANY RECEIVABLE	0		0
OTHER ASSETS	41,021		55,046
TOTAL ASSETS	2,861,051		2,780,666
CURRENT LIABILITIES
Accounts payable	24,944		18,019
Accrued taxes	5,935		3,178
Accrued payroll and benefits	5,451		10,416
Accrued interest	4,931		5,007
Deferred revenue	19,798		10,447
Other current liabilities	25,026		16,474
Total current liabilities	86,085		63,541
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS	972,848		972,567
PENSION AND OTHER POSTRETIREMENT BENEFITS	29,383		29,800
LONG-TERM LEASE LIABILITY	93,749		0
OTHER NON-CURRENT LIABILITIES	78,688		60,208
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,500,850		1,556,873
Noncontrolling interest	99,448		97,677
TOTAL SHAREHOLDERS’ EQUITY	1,600,298	$ 1,641,200	1,654,550	$ 1,712,877	$ 1,736,173	$ 1,692,940
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	2,861,051		2,780,666
Consolidating Adjustments
CURRENT ASSETS
Cash and cash equivalents	0		0
Accounts receivable, less allowance for doubtful accounts	0		0
Inventory	0		0
Prepaid expenses	0		0
Other current assets	0		0
Total current assets	0		0
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	0		0
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS	0		0
NET PROPERTY, PLANT AND EQUIPMENT	0		0
RESTRICTED CASH	0		0
RIGHT-OF-USE ASSETS	0
INVESTMENT IN SUBSIDIARIES	(4,780,920)		(4,856,774)
INTERCOMPANY RECEIVABLE	0		0
OTHER ASSETS	0		0
TOTAL ASSETS	(4,780,920)		(4,856,774)
CURRENT LIABILITIES
Accounts payable	0		0
Accrued taxes	0		0
Accrued payroll and benefits	0		0
Accrued interest	0		0
Deferred revenue	0		0
Other current liabilities	0		0
Total current liabilities	0		0
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS	0		0
PENSION AND OTHER POSTRETIREMENT BENEFITS	0		0
LONG-TERM LEASE LIABILITY	0
OTHER NON-CURRENT LIABILITIES	0		0
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	(4,780,920)		(4,856,774)
Noncontrolling interest	0		0
TOTAL SHAREHOLDERS’ EQUITY	(4,780,920)		(4,856,774)
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	(4,780,920)		(4,856,774)
Rayonier Inc. (Parent Issuer) | Reportable Legal Entities
CURRENT ASSETS
Cash and cash equivalents	84		361
Accounts receivable, less allowance for doubtful accounts	0		0
Inventory	0		0
Prepaid expenses	0		0
Other current assets	0		0
Total current assets	84		361
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	0		0
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS	0		0
NET PROPERTY, PLANT AND EQUIPMENT	0		0
RESTRICTED CASH	0		0
RIGHT-OF-USE ASSETS	0
INVESTMENT IN SUBSIDIARIES	1,771,540		1,833,899
INTERCOMPANY RECEIVABLE	56,257		49,461
OTHER ASSETS	2		2
TOTAL ASSETS	1,827,883		1,883,723
CURRENT LIABILITIES
Accounts payable	0		0
Accrued taxes	0		0
Accrued payroll and benefits	0		0
Accrued interest	3,046		3,047
Deferred revenue	0		0
Other current liabilities	0		0
Total current liabilities	3,046		3,047
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS	323,987		323,803
PENSION AND OTHER POSTRETIREMENT BENEFITS	0		0
LONG-TERM LEASE LIABILITY	0
OTHER NON-CURRENT LIABILITIES	0		0
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,500,850		1,556,873
Noncontrolling interest	0		0
TOTAL SHAREHOLDERS’ EQUITY	1,500,850		1,556,873
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	1,827,883		1,883,723
Subsidiary Guarantors | Reportable Legal Entities
CURRENT ASSETS
Cash and cash equivalents	92,874		104,777
Accounts receivable, less allowance for doubtful accounts	1,919		3,752
Inventory	0		0
Prepaid expenses	2,286		977
Other current assets	97		108
Total current assets	97,176		109,614
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	0		0
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS	0		0
NET PROPERTY, PLANT AND EQUIPMENT	16,439		16,940
RESTRICTED CASH	0		0
RIGHT-OF-USE ASSETS	35,291
INVESTMENT IN SUBSIDIARIES	3,009,380		3,022,875
INTERCOMPANY RECEIVABLE	(644,161)		(638,424)
OTHER ASSETS	169		19,244
TOTAL ASSETS	2,514,294		2,530,249
CURRENT LIABILITIES
Accounts payable	4,227		1,616
Accrued taxes	170		8
Accrued payroll and benefits	3,123		5,848
Accrued interest	1,885		1,960
Deferred revenue	0		0
Other current liabilities	5,793		216
Total current liabilities	15,198		9,648
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS	648,861		648,764
PENSION AND OTHER POSTRETIREMENT BENEFITS	30,067		30,484
LONG-TERM LEASE LIABILITY	30,130
OTHER NON-CURRENT LIABILITIES	18,498		7,454
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,771,540		1,833,899
Noncontrolling interest	0		0
TOTAL SHAREHOLDERS’ EQUITY	1,771,540		1,833,899
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	2,514,294		2,530,249
Non- guarantors | Reportable Legal Entities
CURRENT ASSETS
Cash and cash equivalents	37,998		43,236
Accounts receivable, less allowance for doubtful accounts	43,012		22,399
Inventory	23,597		15,703
Prepaid expenses	18,295		16,039
Other current assets	593		501
Total current assets	123,495		97,878
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	2,392,389		2,401,327
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS	77,072		85,609
NET PROPERTY, PLANT AND EQUIPMENT	5,605		5,811
RESTRICTED CASH	3,754		8,080
RIGHT-OF-USE ASSETS	68,725
INVESTMENT IN SUBSIDIARIES	0		0
INTERCOMPANY RECEIVABLE	587,904		588,963
OTHER ASSETS	40,850		35,800
TOTAL ASSETS	3,299,794		3,223,468
CURRENT LIABILITIES
Accounts payable	20,717		16,403
Accrued taxes	5,765		3,170
Accrued payroll and benefits	2,328		4,568
Accrued interest	0		0
Deferred revenue	19,798		10,447
Other current liabilities	19,233		16,258
Total current liabilities	67,841		50,846
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS	0		0
PENSION AND OTHER POSTRETIREMENT BENEFITS	(684)		(684)
LONG-TERM LEASE LIABILITY	63,619
OTHER NON-CURRENT LIABILITIES	60,190		52,754
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	3,009,380		3,022,875
Noncontrolling interest	99,448		97,677
TOTAL SHAREHOLDERS’ EQUITY	3,108,828		3,120,552
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 3,299,794		$ 3,223,468

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CONSOLIDATING FINANCIAL STATEMENTS (Cash Flows) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Statement of Cash Flows [Abstract]
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES	$ 116,954	$ 181,583
INVESTING ACTIVITIES
Capital expenditures	(29,505)	(25,920)
Real estate development investments	(999)	(4,501)
Purchase of timberlands	(26,396)	(31,234)
Investment in subsidiaries	0	0
Other	(3,888)	113
CASH USED FOR INVESTING ACTIVITIES	(60,788)	(61,542)
FINANCING ACTIVITIES
Issuance of debt	0	1,014
Repayment of debt	0	(54,389)
Dividends paid	(71,107)	(67,053)
Proceeds from the issuance of common shares under incentive stock plan	774	7,824
Repurchase of common shares	(4,241)	(2,966)
Issuance of intercompany notes		0
Other	133	0
Distribution to minority shareholder	(3,594)	0
Intercompany distributions	0	0
CASH USED FOR FINANCING ACTIVITIES	(78,035)	(115,570)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	125	(578)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Change in cash, cash equivalents and restricted cash	(21,744)	3,893
Balance, beginning of year	156,454	172,356
Balance, end of period	134,710	176,249
Consolidating Adjustments
Statement of Cash Flows [Abstract]
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES	0	0
INVESTING ACTIVITIES
Capital expenditures	0	0
Real estate development investments	0	0
Purchase of timberlands	0	0
Investment in subsidiaries	(832)	(40,441)
Other	0	0
CASH USED FOR INVESTING ACTIVITIES	(832)	(40,441)
FINANCING ACTIVITIES
Issuance of debt		0
Repayment of debt		0
Dividends paid	0	0
Proceeds from the issuance of common shares under incentive stock plan	0	0
Repurchase of common shares	0	0
Issuance of intercompany notes		0
Other	0
Distribution to minority shareholder	0
Intercompany distributions	832	40,441
CASH USED FOR FINANCING ACTIVITIES	832	40,441
EFFECT OF EXCHANGE RATE CHANGES ON CASH	0	0
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Change in cash, cash equivalents and restricted cash	0	0
Balance, beginning of year	0	0
Balance, end of period	0	0
Rayonier Inc. (Parent Issuer) | Reportable Legal Entities
Statement of Cash Flows [Abstract]
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES	(14,180)	(7,491)
INVESTING ACTIVITIES
Capital expenditures	0	0
Real estate development investments	0	0
Purchase of timberlands	0	0
Investment in subsidiaries	0	0
Other	0	0
CASH USED FOR INVESTING ACTIVITIES	0	0
FINANCING ACTIVITIES
Issuance of debt		0
Repayment of debt		0
Dividends paid	(69,798)	(67,053)
Proceeds from the issuance of common shares under incentive stock plan	774	7,824
Repurchase of common shares	(4,241)	(2,966)
Issuance of intercompany notes		9,000
Other	0
Distribution to minority shareholder	0
Intercompany distributions	87,168	107,102
CASH USED FOR FINANCING ACTIVITIES	13,903	35,907
EFFECT OF EXCHANGE RATE CHANGES ON CASH	0	0
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Change in cash, cash equivalents and restricted cash	(277)	28,416
Balance, beginning of year	361	48,564
Balance, end of period	84	76,980
Subsidiary Guarantors | Reportable Legal Entities
Statement of Cash Flows [Abstract]
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES	25,406	57,280
INVESTING ACTIVITIES
Capital expenditures	0	(58)
Real estate development investments	0	0
Purchase of timberlands	0	0
Investment in subsidiaries	832	40,441
Other	(7,539)	0
CASH USED FOR INVESTING ACTIVITIES	(6,707)	40,383
FINANCING ACTIVITIES
Issuance of debt		0
Repayment of debt		(50,000)
Dividends paid	(1,309)	0
Proceeds from the issuance of common shares under incentive stock plan	0	0
Repurchase of common shares	0	0
Issuance of intercompany notes		0
Other	0
Distribution to minority shareholder	0
Intercompany distributions	(29,293)	(60,741)
CASH USED FOR FINANCING ACTIVITIES	(30,602)	(110,741)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	0	0
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Change in cash, cash equivalents and restricted cash	(11,903)	(13,078)
Balance, beginning of year	104,777	25,042
Balance, end of period	92,874	11,964
Non- guarantors | Reportable Legal Entities
Statement of Cash Flows [Abstract]
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES	105,728	131,794
INVESTING ACTIVITIES
Capital expenditures	(29,505)	(25,862)
Real estate development investments	(999)	(4,501)
Purchase of timberlands	(26,396)	(31,234)
Investment in subsidiaries	0	0
Other	3,651	113
CASH USED FOR INVESTING ACTIVITIES	(53,249)	(61,484)
FINANCING ACTIVITIES
Issuance of debt		1,014
Repayment of debt		(4,389)
Dividends paid		0
Proceeds from the issuance of common shares under incentive stock plan	0	0
Repurchase of common shares	0	0
Issuance of intercompany notes		(9,000)
Other	133
Distribution to minority shareholder	(3,594)
Intercompany distributions	(58,707)	(86,802)
CASH USED FOR FINANCING ACTIVITIES	(62,168)	(81,177)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	125	(578)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Change in cash, cash equivalents and restricted cash	(9,564)	(11,445)
Balance, beginning of year	51,316	98,750
Balance, end of period	$ 41,752	$ 87,305