Exhibit 12
Rayonier Inc. and Subsidiaries
Ratio of Earnings to Fixed Charges
(Unaudited, thousands of dollars)
| Year Ended December 31, |
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| 2003 |
2002 |
2001 |
2000 |
1999 |
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| Earnings: |
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| Net Income |
$ | 49,972 | $ | 54,172 | $ | 57,598 | $ | 78,187 | $ | 68,653 | ||||||||||
| Add: |
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| (Income) / loss from discontinued operations |
— | 745 | (688 | ) | (669 | ) | (84 | ) | ||||||||||||
| Income tax |
5,806 | 14,880 | 23,747 | 29,398 | 29,082 | |||||||||||||||
| Amortization of capitalized interest |
2,501 | 2,531 | 2,625 | 2,578 | 2,308 | |||||||||||||||
| 58,279 | 72,328 | 83,282 | 109,494 | 99,959 | ||||||||||||||||
| Adjustments to earnings for fixed charges: |
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| Interest and other financial charges |
48,742 | 62,433 | 70,314 | 87,199 | 43,705 | |||||||||||||||
| Interest factor attributable to rentals |
288 | 823 | 1,633 | 1,362 | 1,367 | |||||||||||||||
| 49,030 | 63,256 | 71,947 | 88,561 | 45,072 | ||||||||||||||||
| Earnings as adjusted |
$ | 107,309 | $ | 135,584 | $ | 155,229 | $ | 198,055 | $ | 145,031 | ||||||||||
| Fixed Charges: |
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| Fixed charges above |
$ | 49,030 | $ | 63,256 | $ | 71,947 | $ | 88,561 | $ | 45,072 | ||||||||||
| Capitalized interest |
— | — | — | — | 314 | |||||||||||||||
| Total fixed charges |
$ | 49,030 | $ | 63,256 | $ | 71,947 | $ | 88,561 | $ | 45,386 | ||||||||||
| Ratio of earnings as adjusted to total fixed charges |
2.19 | 2.14 | 2.16 | 2.24 | 3.20 | |||||||||||||||
| Effective tax rate |
10 | % | 21 | % | 29 | % | 28 | % | 30 | % | ||||||||||