Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | RAYONIER INC. | |
Trading Symbol | RYN | |
Entity Central Index Key | 52,827 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 125,941,960 |
Consolidated Statements of (Los
Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||||
SALES | $ 115,801 | $ 163,145 | $ 256,106 | $ 306,332 | |
Costs and Expenses | |||||
Cost of sales | 103,689 | 123,096 | 210,923 | 238,995 | |
Selling and general expenses | 12,727 | 13,861 | 23,626 | 27,098 | |
Other operating income, net (Note 17) | (7,138) | (11,389) | (12,713) | (11,764) | |
Costs and Expenses, Total | 109,278 | 125,568 | 221,836 | 254,329 | |
OPERATING INCOME | 6,523 | 37,577 | 34,270 | 52,003 | |
Interest expense | (8,483) | (15,612) | (17,027) | (26,286) | |
Interest income and miscellaneous expense, net | (1,196) | (4,385) | (2,691) | (5,397) | |
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (3,156) | 17,580 | 14,552 | 20,320 | |
Income tax benefit (expense) | 296 | (13,556) | 768 | (5,961) | |
(LOSS) INCOME FROM CONTINUING OPERATIONS | (2,860) | 4,024 | 15,320 | 14,359 | |
DISCONTINUED OPERATIONS, NET (Note 2) | |||||
Income from discontinued operations, net of income tax expense of $0, $5,966, $0 and $21,231 | 0 | 12,084 | 0 | 43,092 | |
NET (LOSS) INCOME | (2,860) | 16,108 | 15,320 | 57,451 | $ 97,846 |
Less: Net loss attributable to noncontrolling interest | (1,324) | (245) | (891) | (328) | |
NET (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | (1,536) | 16,353 | 16,211 | 57,779 | |
OTHER COMPREHENSIVE (LOSS) INCOME | |||||
Foreign currency translation adjustment, net of income tax expense of $732, $0, $1,074 and $0 | (25,395) | 3,517 | (39,717) | 21,320 | (15,847) |
New Zealand joint venture cash flow hedges, net of income tax benefit (expense) of $1,133, $401, $1,501 and ($100) | (2,917) | (920) | (3,863) | 791 | $ (1,855) |
Amortization of pension and postretirement plans, net of income tax expense of $179, $35,944, $337 and $36,875 | 743 | 58,873 | 1,524 | 60,970 | |
Total other comprehensive (loss) income | (27,569) | 61,470 | (42,056) | 83,081 | |
COMPREHENSIVE (LOSS) INCOME | (30,429) | 77,578 | (26,736) | 140,532 | |
Less: Comprehensive (loss) income attributable to noncontrolling interest | (9,731) | 297 | (13,522) | 5,722 | |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | $ (20,698) | $ 77,281 | $ (13,214) | $ 134,810 | |
BASIC (LOSS) EARNINGS PER SHARE ATTRIBUTABLE TO RAYONIER INC. | |||||
Continuing Operations (in dollars per share) | $ (0.01) | $ 0.03 | $ 0.13 | $ 0.12 | |
Discontinued Operations (in dollars per share) | 0 | 0.10 | 0 | 0.34 | |
Net (Loss) Income, Basic (in dollars per share) | (0.01) | 0.13 | 0.13 | 0.46 | |
DILUTED (LOSS) EARNINGS PER SHARE ATTRIBUTABLE TO RAYONIER INC. | |||||
Continuing Operations (in dollars per share) | (0.01) | 0.03 | 0.13 | 0.11 | |
Discontinued Operations, (in dollars per share) | 0 | 0.09 | 0 | 0.33 | |
Net (Loss) Income, Diluted (in dollars per share) | (0.01) | 0.12 | 0.13 | 0.44 | |
Dividends declared (in dollars per share) | $ 0.25 | $ 0.49 | $ 0.50 | $ 0.98 | $ 2.03 |
Consolidated Statements of (Lo3
Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Income from discontinued operations, income tax expense | $ 0 | $ 5,966 | $ 0 | $ 21,231 |
Foreign currency translation adjustment, income tax benefit | 732 | 0 | 1,074 | 0 |
New Zealand joint venture cash flow hedges, income tax benefit (expense) | 1,133 | 401 | 1,501 | (100) |
Amortization of pension and postretirement plans, income tax expense | $ 179 | $ 35,944 | $ 337 | $ 36,875 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 91,632 | $ 161,558 |
Accounts receivable, less allowance for doubtful accounts of $42 and $42 | 19,444 | 24,018 |
Inventory (Note 14) | 13,362 | 8,383 |
Prepaid and other current assets | 21,222 | 19,745 |
Total current assets | 145,660 | 213,704 |
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 2,086,729 | 2,088,501 |
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS (NOTE 5) | 69,726 | 77,433 |
PROPERTY, PLANT AND EQUIPMENT | ||
Land | 1,833 | 1,833 |
Buildings | 8,977 | 8,961 |
Machinery and equipment | 3,388 | 3,503 |
Construction in progress | 772 | 579 |
Total property, plant and equipment, gross | 14,970 | 14,876 |
Less — accumulated depreciation | (8,536) | (8,170) |
Total property, plant and equipment, net | 6,434 | 6,706 |
OTHER ASSETS | 57,772 | 66,771 |
TOTAL ASSETS | 2,366,321 | 2,453,115 |
CURRENT LIABILITIES | ||
Accounts payable | 22,396 | 20,211 |
Current maturities of long-term debt | 30,000 | 129,706 |
Accrued taxes | 15,811 | 11,405 |
Accrued payroll and benefits | 4,596 | 6,390 |
Accrued interest | 8,043 | 8,433 |
Other current liabilities | 31,614 | 25,857 |
Total current liabilities | 112,460 | 202,002 |
LONG-TERM DEBT | 722,353 | 621,849 |
PENSION AND OTHER POSTRETIREMENT BENEFITS (Note 13) | 33,396 | 33,477 |
OTHER NON-CURRENT LIABILITIES | $ 20,840 | $ 20,636 |
COMMITMENTS AND CONTINGENCIES (Notes 11 and 12) | ||
SHAREHOLDERS’ EQUITY | ||
Common Shares, 480,000,000 shares authorized, 126,492,061 and 126,773,097 shares issued and outstanding | $ 694,835 | $ 702,598 |
Retained earnings | 743,528 | 790,697 |
Accumulated other comprehensive loss | (34,250) | (4,825) |
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,404,113 | 1,488,470 |
Noncontrolling interest | 73,159 | 86,681 |
TOTAL SHAREHOLDERS’ EQUITY | 1,477,272 | 1,575,151 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 2,366,321 | $ 2,453,115 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current Assets: | ||
Accounts receivable, allowance for doubtful accounts | $ 42 | $ 42 |
Shareholders’ Equity: | ||
Common shares, shares authorized | 480,000,000 | 480,000,000 |
Common shares, shares issued | 126,492,061 | 126,773,097 |
Common shares, shares outstanding | 126,492,061 | 126,773,097 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
OPERATING ACTIVITIES | |||
Net income | $ 15,320 | $ 57,451 | |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation, depletion and amortization | 53,826 | 56,316 | |
Non-cash cost of land sold and real estate development costs recovered upon sale | 4,938 | 5,398 | |
Stock-based incentive compensation expense | 2,588 | 5,980 | |
Deferred income taxes | (1,322) | 10,103 | |
Depreciation and amortization from discontinued operations | 0 | 37,985 | |
Amortization of losses from pension and postretirement plans | 1,861 | 5,896 | |
Other | 944 | (43) | |
Changes in operating assets and liabilities: | |||
Receivables | 2,414 | 9,988 | |
Inventories | (8,107) | 4,765 | |
Accounts payable | 3,874 | 27,299 | |
Income tax receivable/payable | (321) | 5,217 | |
All other operating activities | 9,868 | 7,885 | |
Expenditures for dispositions and discontinued operations | 0 | (5,096) | |
CASH PROVIDED BY OPERATING ACTIVITIES | 85,883 | 229,144 | |
INVESTING ACTIVITIES | |||
Capital expenditures | (26,130) | (33,597) | |
Capital expenditures from discontinued operations | 0 | (47,050) | |
Real estate development costs | (578) | (2,595) | |
Purchase of timberlands | (88,414) | (74,817) | |
Change in restricted cash | 4,160 | 63,128 | |
Other | 3,689 | (478) | |
CASH USED FOR INVESTING ACTIVITIES | (107,273) | (95,409) | |
FINANCING ACTIVITIES | |||
Issuance of debt | 59,100 | 1,238,389 | |
Repayment of debt | (31,472) | (1,107,062) | |
Dividends paid | (63,421) | (124,628) | |
Proceeds from the issuance of common shares | 718 | 3,347 | |
Repurchase of common shares | (9,057) | (1,834) | |
Debt issuance costs | 0 | (12,380) | |
Net cash disbursed upon spin-off of Performance Fibers business | 0 | (106,420) | |
Other | 0 | (680) | |
CASH USED FOR FINANCING ACTIVITIES | (44,132) | (111,268) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (4,404) | (50) | |
CASH AND CASH EQUIVALENTS | |||
Change in cash and cash equivalents | (69,926) | 22,417 | |
Balance, beginning of year | 161,558 | 199,644 | |
Balance, end of period | 91,632 | 222,061 | |
Cash paid during the period: | |||
Interest | [1] | 15,303 | 26,980 |
Income taxes | 270 | 10,417 | |
Non-cash investing activity: | |||
Capital assets purchased on account | 2,396 | 11,547 | |
Patronage refunds received, netted with interest paid | $ 1,300 | $ 2,100 | |
[1] | Interest paid is presented net of patronage refunds received of $1.3 million for the six months ended June 30, 2015 and $2.1 million for the six months ended June 30, 2014. For additional information on patronage refunds, see Note 13 — Debt in the 2014 Form 10-K. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 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 for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, these financial statements and notes reflect all 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, 2014 , as filed with the SEC (the “2014 Form 10-K”). Reclassifications Certain 2014 amounts have been reclassified to conform to the current presentation, including changes in balance sheet presentation. During the first quarter of 2015, the Company reclassified seeds and seedlings from Inventory and Other Assets to Timber and Timberlands, Net to better reflect the intended use of the assets. Rayonier also reclassified long-term higher and better use (“HBU”) timberlands and real estate development costs from Other Assets to a separate balance sheet caption. These adjustments are reflected in the June 30, 2015 and December 31, 2014 Consolidated Balance Sheets. Corresponding changes have also been made to the Consolidated Statements of Cash Flows for both periods presented. Certain 2014 amounts have also been adjusted for reclassification of discontinued operations. Rayonier completed the spin-off of its Performance Fibers business on June 27, 2014. Accordingly, the operating results of this business segment are reported as discontinued operations in the Company’s Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income for the prior-year period. Certain administrative and general costs historically allocated to the Performance Fibers business that remained with Rayonier are reported in continuing operations. The Consolidated Statement of Cash Flow for the six months ended June 30, 2014 has not been restated to exclude Performance Fibers cash flows. See Note 2 — Discontinued Operations for additional information regarding the spin-off of the Performance Fibers business. New Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) jointly issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers , a comprehensive new revenue recognition standard that will supersede current revenue recognition guidance. The core principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to receive in exchange for those goods or services. The guidance provides a unified model to determine when and how revenue is recognized and will require enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. In July 2015, the FASB approved a one-year deferral of the effective date of the new standard, with an option for organizations to adopt early based on the original effective date. This standard will be effective for Rayonier beginning January 1, 2018 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest — Imputation of Interest (Subtopic 835-30) — Simplifying the Presentation of Debt Issuance Costs. ASU No. 2015-03 requires that debt issuance costs be presented in the Balance Sheet as a direct deduction from the carrying amount of the debt liability. ASU No. 2015-03 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, and is required to be applied on a retrospective basis. Early adoption is permitted. Rayonier intends to adopt ASU No. 2015-03 in the Company’s first quarter 2016 Form 10-Q filing and does not expect adoption to have a material impact on the consolidated financial statements. In May 2015, the FASB issued ASU No. 2015–07, “ Fair Value Measurement (Topic 820) — Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). ASU No. 2015–07 requires that investments for which the fair value is measured at NAV using the practical expedient (investments in funds measured at NAV) under “Fair Value Measurements and Disclosures” (Topic 820) be excluded from the fair value hierarchy. ASU No. 2015–07 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. ASU No. 2015–07 is required to be applied retrospectively to all periods presented beginning in the period of adoption. Early adoption is permitted. Rayonier intends to adopt ASU No. 2015–07 in the Company’s first quarter 2016 Form 10-Q filing and does not expect adoption to have a material impact on the consolidated financial statements. Subsequent Events Quarterly Dividend On July 20, 2015, the Company announced a third quarter dividend of 25 cents per share payable September 30, 2015, to shareholders of record on September 16, 2015. Debt Refinancing and Recapitalization of New Zealand JV See Note 15 — Debt for discussion of debt refinancing and planned recapitalization of the Company’s New Zealand joint venture. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 6 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS Spin-Off of the Performance Fibers Business On June 27, 2014, Rayonier completed the tax-free spin-off of its Performance Fibers business and retained its timber, real estate and trading businesses. The spin-off resulted in two independent, publicly-traded companies, with the Performance Fibers business being spun-off to Rayonier shareholders as a newly formed public company named Rayonier Advanced Materials Inc. (“Rayonier Advanced Materials”). O n June 27, 2014, the shareholders of record received one share of Rayonier Advanced Materials common stock for every three common shares of Rayonier held as of the close of business on the record date of June 18, 2014. In connection with the spin-off, Rayonier Advanced Materials distributed $ 906.2 million in cash to Rayonier from $ 550 million in Senior Notes issued by Rayonier A.M. Products (a wholly-owned subsidiary of Rayonier Advanced Materials), $ 325 million in term loans, and $ 75 million from a revolving credit facility Rayonier Advanced Materials entered into prior to the spin-off. Pursuant to the terms of the Internal Revenue Service spin-off ruling, $ 75 million of this cash was paid to Rayonier’s shareholders as dividends. Of this $ 75 million , $ 63.2 million was paid to shareholders as a special dividend in the third quarter of 2014. In order to effect the spin-off and govern the Company’s relationship with Rayonier Advanced Materials after the spin-off, Rayonier and Rayonier Advanced Materials entered into a Separation and Distribution Agreement, an Intellectual Property Agreement, a Tax Sharing Agreement, an Employee Matters Agreement and a Transition Services Agreement. See Note 3 — Discontinued Operations in the 2014 Form 10-K for further details concerning these agreements. Rayonier will not have significant continuing involvement in the operations of the Performance Fibers business going forward. Accordingly, the operating results of the Performance Fibers business, formerly disclosed as a separate reportable segment, are classified as discontinued operations in the Company's Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income for all periods presented. Certain administrative and general costs historically allocated to the Performance Fibers segment are reported in continuing operations, as required. The following table summarizes the operating results of the Company's discontinued operations related to the Performance Fibers spin-off for the three and six months ended June 30, 2014 , as presented in "Income from discontinued operations, net" in the Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income: Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 Sales $212,680 $456,180 Cost of sales and other (174,961 ) (368,868 ) Transaction expenses (19,669 ) (22,989 ) Income from discontinued operations before income taxes 18,050 64,323 Income tax expense (5,966 ) (21,231 ) Income from discontinued operations, net $12,084 $43,092 In accordance with Accounting Standards Codification (“ASC”) 205-20-S99-3, Allocation of Interest to Discontinued Operations , the Company elected to allocate interest expense to discontinued operations where the debt is not directly attributed to the Performance Fibers business. Interest expense has been allocated based on a ratio of net assets to be discontinued to the sum of consolidated net assets plus consolidated debt (other than debt directly attributable to the Timber and Real Estate operations). The following table summarizes the interest expense allocated to discontinued operations for the three and six months ended June 30, 2014 : Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 Interest expense allocated to the Performance Fibers business ($1,910 ) ($4,205 ) The following table summarizes the depreciation, amortization and capital expenditures of the Company's discontinued operations related to the Performance Fibers business: Three Months Ended Six Months Ended June 30, 2014 Depreciation and amortization $17,336 $37,985 Capital expenditures 29,880 47,050 Pursuant to a Memorandum of Understanding agreement, Rayonier may provide Rayonier Advanced Materials with up to 120,000 tons of hardwood annually through July 30, 2017. Prior to the spin-off, hardwood purchases were intercompany transactions eliminated in consolidation as follows: Three Months Ended Six Months Ended June 30, 2014 Hardwood purchases $1,190 $3,935 |
(LOSS) EARNINGS PER COMMON SHAR
(LOSS) EARNINGS PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
(Loss) Earnings Per Common Share | (LOSS) EARNINGS PER COMMON SHARE The following table provides details of the calculations of basic and diluted (loss) earnings per common share: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (Loss) income from continuing operations ($2,860 ) $4,024 $15,320 $14,359 Less: Net (loss) from continuing operations attributable to noncontrolling interest (1,324 ) (245 ) (891 ) (328 ) (Loss) income from continuing operations attributable to Rayonier Inc. ($1,536 ) $4,269 $16,211 $14,687 Income from discontinued operations, net, attributable to Rayonier Inc. — $12,084 — 43,092 Net (loss) income attributable to Rayonier Inc. ($1,536 ) $16,353 $16,211 $57,779 Shares used for determining basic (loss) earnings per common share 126,635,710 126,434,376 126,625,081 126,390,891 Dilutive effect of: Stock options — 293,213 146,754 296,768 Performance and restricted shares — 201,956 30,515 194,995 Assumed conversion of Senior Exchangeable Notes (a) — 2,631,514 702,301 2,579,402 Assumed conversion of warrants (a) — 2,738,606 — 2,656,633 Shares used for determining diluted (loss) earnings per common share 126,635,710 132,299,665 127,504,651 132,118,689 Basic (loss) earnings per common share attributable to Rayonier Inc.: Continuing operations ($0.01 ) $0.03 $0.13 $0.12 Discontinued operations — 0.10 — 0.34 Net (loss) income ($0.01 ) $0.13 $0.13 $0.46 Diluted (loss) earnings per common share attributable to Rayonier Inc.: Continuing operations ($0.01 ) $0.03 $0.13 $0.11 Discontinued operations — 0.09 — 0.33 Net (loss) income ($0.01 ) $0.12 $0.13 $0.44 Three Months Ended Six Months Ended 2015 2014 2015 2014 Anti-dilutive shares excluded from the computations of diluted (loss) earnings per share: Stock options, performance and restricted shares (b) 158,191 507,044 937,236 499,193 Assumed conversion of exchangeable note hedges (a) — 2,631,514 702,301 2,579,402 Assumed conversion of Senior Exchangeable Notes due 2015 (b) 501,189 — — — Total 659,380 3,138,558 1,639,537 3,078,595 (a) Rayonier will not issue additional shares upon future exchange or maturity of the Senior Exchangeable Notes due 2015 (the “2015 Notes”) due to offsetting hedges. ASC 260, Earnings Per Share requires the assumed conversion of the 2015 Notes to be included in dilutive shares if the average stock price for the period exceeds the strike price, while the assumed conversion of the hedges is excluded since they are anti-dilutive. The full dilutive effect of the 2015 Notes was included for all periods presented, except for second quarter 2015 due to the loss incurred in that period. Rayonier will distribute additional shares upon maturity of the warrants sold in conjunction with the 2015 Notes if the stock price exceeds $28.11 per share. The exchange price on the warrants is lower than periods prior to second quarter 2014 as it has been adjusted to reflect the spin-off of the Performance Fibers business. The warrants were not dilutive for the three and six months ended June 30, 2015 as the average stock price for these periods did not exceed the strike price. For further information, see Note 13 — Debt in the 2014 Form 10-K and Note 15 — Debt of this Form 10-Q. (b) For the three months ended June 30, 2015, the assumed conversion of the 2015 Notes, as well as incremental shares related to stock options, performance shares, and restricted shares, were not included in the computation of diluted loss per share as their inclusion would have an anti-dilutive effect. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The operations conducted by the Company’s real estate investment trust (“REIT”) entities are generally not subject to U.S. federal and state income taxation. Non-REIT qualifying operations are conducted by the Company’s taxable REIT subsidiaries. Prior to the June 27, 2014 spin-off of Rayonier Advanced Materials, the Company’s taxable REIT subsidiaries (“TRS”) operations included the Performance Fibers business. As such, during 2014 and prior periods the income tax benefit from continuing operations was significantly impacted by the TRS businesses. Subsequent to the spin-off, the primary businesses performed in Rayonier’s taxable REIT subsidiaries include log trading and certain real estate activities, such as the sale and entitlement of development HBU properties. Provision for Income Taxes from Continuing Operations The Company’s effective tax rate is below the 35 percent U.S. statutory rate due to tax benefits associated with being a REIT. The income tax benefit for the three and six months ended June 30, 2015 is principally related to the Matariki Forestry Group joint venture (the “New Zealand JV”). The prior year period’s benefit was due to losses at Rayonier's taxable operations primarily from interest and general administrative expenses not allowed to be allocated to the discontinued operations of the Performance Fibers business and is not comparable to the current year. The table below reconciles the U.S. statutory rate to the Company’s effective tax rate for each period presented: Three Months Ended June 30, 2015 2014 Income tax (benefit) expense at federal statutory rate ($1,105 ) 35.0 % $6,153 35.0 % REIT income and taxable losses 1,077 (34.1 ) (5,625 ) (32.0 ) Foreign operations 101 (3.2 ) (728 ) (4.1 ) Net operating loss valuation allowance (216 ) 6.9 — — Non-deductible real estate losses — — 590 3.4 Other (153 ) 4.8 119 0.6 Income tax (benefit) expense before discrete items ($296 ) 9.4 % $509 2.9 % CBPC valuation allowance — — 15,574 88.7 Spin-off related costs — — 797 4.5 Deferred tax inventory valuations — — (3,293 ) (18.7 ) Other — — (31 ) (0.3 ) Income tax (benefit) expense as reported for continuing operations ($296 ) 9.4 % $13,556 77.1 % Six Months Ended June 30, 2015 2014 Income tax expense at federal statutory rate $5,093 35.0 % $7,112 35.0 % REIT income and taxable losses (6,894 ) (47.4 ) (13,823 ) (69.3 ) Foreign operations (645 ) (4.4 ) (841 ) (0.3 ) Net operating loss valuation allowance 1,386 9.5 — — Non-deductible real estate losses — — 681 1.2 Other 292 2.0 138 0.3 Income tax benefit before discrete items ($768 ) (5.3 )% ($6,733 ) (33.1 )% CBPC valuation allowance — — 15,574 76.6 Spin-off related costs — — 797 3.9 Deferred tax inventory valuations — — (3,293 ) (16.2 ) Other — — (384 ) (1.9 ) Income tax (benefit) expense as reported for continuing operations ($768 ) (5.3 )% $5,961 29.3 % Provision for Income Taxes from Discontinued Operations On June 27, 2014, Rayonier completed the spin-off of its Performance Fibers business. For the three and six months ended June 30, 2014 , income tax expense related to Performance Fibers discontinued operations was $6.0 million and $21.2 million , respectively. See Note 2 — Discontinued Operations for additional information on the spin-off of the Performance Fibers business. |
HIGHER AND BETTER USE TIMBERLAN
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 6 Months Ended |
Jun. 30, 2015 | |
Real Estate [Abstract] | |
Higher and Better Use Timberlands and Real Estate Development Costs | HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS 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 REIT to TRS, 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 costs from December 31, 2014 to June 30, 2015 is shown below: Higher and Better Use Timberlands and Real Estate Development Costs Land and Timber Development Costs Total Non-current portion at December 31, 2014 $65,959 $11,474 $77,433 Plus: Current portion (a) 4,875 57 4,932 Total Balance at December 31, 2014 70,834 11,531 82,365 Non-cash cost of land sold and real estate development costs recovered upon sale (4,205 ) (57 ) (4,262 ) Timber depletion from harvesting activities and basis of timber sold in real estate sales (1,340 ) — (1,340 ) Capitalized real estate development costs (b) — 926 926 Capital expenditures (silviculture) 100 — 100 Acquisitions — — — Transfers — — — Other — (28 ) (28 ) Total Balance at June 30, 2015 65,389 12,372 77,761 Less: Current portion (a) (7,488 ) (547 ) (8,035 ) Non-current portion at June 30, 2015 $57,901 $11,825 $69,726 (a) The current portion of Higher and Better Use Timberlands and Real Estate Development Costs is recorded in Inventory. See Note 14 — Inventory for additional information. (b) Capitalized real estate development costs for the six months ended June 30, 2015 of $926,000 consisted of $578,000 in cash outflows and a $348,000 change in accrued spending. |
RESTRICTED DEPOSITS
RESTRICTED DEPOSITS | 6 Months Ended |
Jun. 30, 2015 | |
Restricted Cash and Investments [Abstract] | |
Restricted Deposits | RESTRICTED DEPOSITS 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, 2015 and December 31, 2014 , the Company had $2.5 million and $6.7 million , respectively, of proceeds from real estate sales classified as restricted cash in Other Assets, which were deposited with an LKE intermediary. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY An analysis of shareholders’ equity for the six months ended June 30, 2015 and the year ended December 31, 2014 is shown below (share amounts not in thousands): Rayonier Inc. Shareholders’ Equity Common Shares Retained Earnings Accumulated Other Comprehensive Income/(Loss) Non-controlling Interest Total Shareholders’ Equity Shares (a) Amount Balance, December 31, 2013 126,257,870 $692,100 $1,015,209 ($46,139 ) $94,073 $1,755,243 Net income (loss) — — 99,337 — (1,491 ) 97,846 Dividends ($2.03 per share) — — (256,861 ) — — (256,861 ) Contribution to Rayonier Advanced Materials — (301 ) (61,318 ) 80,749 — 19,130 Adjustments to Rayonier Advanced Materials (b) — — (5,670 ) (2,556 ) — (8,226 ) Issuance of shares under incentive stock plans 561,701 5,579 — — — 5,579 Stock-based compensation — 7,869 — — — 7,869 Tax deficiency on stock-based compensation — (791 ) — — — (791 ) Repurchase of common shares (46,474 ) (1,858 ) — — — (1,858 ) Net loss from pension and postretirement plans — — — (24,147 ) — (24,147 ) Noncontrolling interest redemption of shares — — — — (931 ) (931 ) Foreign currency translation adjustment — — — (11,526 ) (4,321 ) (15,847 ) Joint venture cash flow hedges — — — (1,206 ) (649 ) (1,855 ) Balance, December 31, 2014 126,773,097 $702,598 $790,697 ($4,825 ) $86,681 $1,575,151 Net income (loss) — — 16,211 — (891 ) 15,320 Dividends ($0.50 per share) — — (63,380 ) — — (63,380 ) Issuance of shares under incentive stock plans 134,448 718 — — — 718 Stock-based compensation — 2,588 — — — 2,588 Tax deficiency on stock-based compensation — (272 ) — — — (272 ) Repurchase of common shares (c) (d) (415,484 ) (10,797 ) — — — (10,797 ) Net gain from pension and postretirement plans — — — 1,524 — 1,524 Foreign currency translation adjustment — — — (28,438 ) (11,279 ) (39,717 ) Joint venture cash flow hedges — — — (2,511 ) (1,352 ) (3,863 ) Balance, June 30, 2015 126,492,061 $694,835 $743,528 ($34,250 ) $73,159 $1,477,272 (a) The Company’s common shares are registered in North Carolina and have a $0.00 par value. (b) Primarily relates to adjustments made to the Rayonier Advanced Materials contribution as income taxes and pension and postretirement plan assets and obligations were finalized. (c) During the second quarter the Company repurchased approximately $10.7 million of common stock at an average price of $25.94 per share. As of June 30, 2015 , the Company had 126.5 million shares of common stock outstanding and $89.3 million remaining in its share repurchase authorization announced in June 2015. (d) Includes shares of the Company’s common stock purchased from employees in non-open market transactions. The shares of stock were sold by current and former employees of the Company in exchange for cash that was used to pay withholding taxes associated with the vesting of restricted stock awards under the Company’s stock incentive plan. The price per share surrendered is based on the closing price of the company’s stock on the respective vesting dates of the awards. |
SEGMENT AND GEOGRAPHICAL INFORM
SEGMENT AND GEOGRAPHICAL INFORMATION | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Segment and Geographical Information | SEGMENT AND GEOGRAPHICAL INFORMATION On June 27, 2014, the Company spun-off its Performance Fibers business and its operations are shown as discontinued operations for all periods presented. See Note 2 — Discontinued Operations for additional information. Effective with the fourth quarter of 2014, the Company realigned its segments considering the economic characteristics of each business unit and the way management internally evaluates business performance and makes capital allocation decisions. All prior period amounts have been reclassified to reflect the newly realigned segment structure. See Item 2 — Management’s Discussion and Analysis of Financial Condition — Our Company and Results of Operations for additional information. Sales between operating segments are made based on estimated fair market value. 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 (Loss) Income and Comprehensive (Loss) Income is equal to segment income. Certain income (loss) items in the Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income are not allocated to segments. These items, which include gains (losses) from certain asset dispositions, interest income (expense), miscellaneous income (expense) and income tax (expense) benefit, are not considered by management to be part of segment operations. Segment information for the three and six months ended June 30, 2015 and 2014 were as follows: Three Months Ended Six Months Ended SALES 2015 2014 2015 2014 Southern Timber $32,681 $31,525 $68,212 $65,402 Pacific Northwest Timber 17,102 25,053 36,256 58,090 New Zealand Timber 39,223 44,543 80,417 82,307 Real Estate 6,945 34,017 30,736 39,547 Trading 19,850 29,224 40,485 64,910 Intersegment Eliminations — (1,217 ) — (3,924 ) Total $115,801 $163,145 $256,106 $306,332 Three Months Ended Six Months Ended OPERATING INCOME 2015 2014 2015 2014 Southern Timber $11,777 $8,886 $24,190 $19,379 Pacific Northwest Timber 1,687 8,785 4,275 21,427 New Zealand Timber (945 ) 2,249 4,749 4,660 Real Estate 1,421 27,764 14,003 28,489 Trading (84 ) (132 ) 186 (544 ) Corporate and other (7,333 ) (9,975 ) (13,133 ) (21,408 ) Total Operating Income $6,523 $37,577 34,270 52,003 Unallocated interest expense and other (9,679 ) ($19,997 ) (19,718 ) (31,683 ) Total (loss) income from continuing operations before income taxes ($3,156 ) $17,580 $14,552 $20,320 Three Months Ended Six Months Ended DEPRECIATION, DEPLETION AND AMORTIZATION 2015 2014 2015 2014 Southern Timber $12,650 $10,709 $26,951 $22,705 Pacific Northwest Timber 2,941 5,194 6,731 11,492 New Zealand Timber 7,183 7,669 15,186 14,163 Real Estate 1,006 6,422 4,818 7,333 Trading — — — — Corporate and other 70 341 140 623 Total $23,850 $30,335 $53,826 $56,316 Three Months Ended Six Months Ended NON-CASH COST OF LAND SOLD AND REAL ESTATE COSTS RECOVERED UPON SALE 2015 2014 2015 2014 Southern Timber — — — — Pacific Northwest Timber — — — — New Zealand Timber — (2 ) — 2,096 Real Estate 1,191 2,324 4,938 3,302 Trading — — — — Corporate and other — — — — Total $1,191 $2,322 $4,938 $5,398 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | 6 Months Ended |
Jun. 30, 2015 | |
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’s New Zealand JV uses derivative financial instruments to mitigate the financial impact of exposure to these risks. The Company also uses derivative financial instruments to mitigate exposure to foreign currency risk due to the translation of the investment in Rayonier’s New Zealand-based operations from New Zealand dollars to U.S. dollars. Accounting for derivative financial instruments is governed by Accounting Standards Codification 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 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 New Zealand is partially or completely liquidated. The ineffective portion of any hedge as well as 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. The Company’s hedge ineffectiveness was immaterial for all periods presented. Foreign Currency Exchange and Option Contracts The functional currency of Rayonier’s wholly owned subsidiary, Rayonier New Zealand Limited (“RNZ”) and the New Zealand JV is the New Zealand dollar. The New Zealand JV is exposed to foreign currency risk on export sales and ocean freight payments which are mainly denominated in U.S. dollars. The timber operations of the New Zealand JV are typically hedged 50 percent to 90 percent of its estimated foreign currency exposure with respect to the following three months forecasted sales and purchases, 50 percent to 75 percent of forecasted sales and purchases for the forward three to 12 months and up to 50 percent of the forward 12 to 18 months. Foreign currency exposure from the New Zealand JV’s trading operations is typically hedged based on the following three months forecasted sales and purchases. As of June 30, 2015 , foreign currency exchange contracts and foreign currency option contracts had maturity dates through December 2016. Foreign currency exchange and option contracts hedging foreign currency risk on export sales and ocean freight payments that were entered into subsequent to the Company’s acquisition of a majority interest in the New Zealand JV 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. In December 2014, the Company entered into a foreign currency exchange contract to mitigate the risk of fluctuations in foreign currency exchange rates when translating RNZ’s balance sheet to U.S. dollars. This contract hedges a portion of the Company’s net investment in New Zealand and qualifies as a net investment hedge. The fair value of the foreign currency exchange contract 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 ineffectiveness of the foreign currency exchange contract is measured using the spot rate method, whereby the change in the fair value of the contract, other than the change attributable to movements in the spot rate, is excluded from the measure of hedge ineffectiveness and is reported directly in earnings. The Company does not expect any ineffectiveness or changes other than those attributable to movements in the spot rate as the critical risks of the forward contract and the net investment in RNZ coincide. This foreign currency exchange contract matures on December 21, 2015. Interest Rate Swaps The Company uses interest rate swaps to manage the New Zealand JV’s exposure to interest rate movements on its variable rate debt attributable to changes in the New Zealand Bank bill rate. By converting a portion of these borrowings from floating rates to fixed rates the Company has reduced the impact of interest rate changes on its expected future cash outflows. As of June 30, 2015 , the Company’s interest rate contracts hedged 81 percent of the New Zealand JV’s variable rate debt and had maturity dates through January 2020 . See Note 15 — Debt for discussion of debt refinancing and planned recapitalization of the Company’s New Zealand joint venture subsequent to June 30, 2015 . Fuel Hedge Contracts The Company has historically used fuel hedge contracts to manage its New Zealand JV’s exposure to changes in New Zealand’s domestic diesel prices. Due to the low volume of diesel fuel purchases made by the New Zealand JV in 2013, the Company decided to no longer hedge its diesel fuel purchases effective November 2013. There were no contracts remaining as of December 31, 2014. The following table demonstrates the impact of the Company’s derivatives on the Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income for the six months ended June 30, 2015 and 2014 . Three Months Ended Income Statement Location 2015 2014 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other comprehensive (loss) income ($1,621 ) ($818 ) Foreign currency option contracts Other comprehensive (loss) income (2,658 ) (504 ) Derivative designated as a net investment hedge: Foreign currency exchange contract Other comprehensive (loss) income $2,173 — Derivatives not designated as hedging instruments: Foreign currency exchange contracts Other operating (income) expense — — Foreign currency option contracts Other operating (income) expense 546 — Interest rate swaps Interest income and miscellaneous expense, net (1,417 ) (729 ) Fuel hedge contracts Cost of sales (benefit) — (92 ) Six Months Ended Income Statement Location 2015 2014 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other comprehensive (loss) income ($2,308 ) $669 Foreign currency option contracts Other comprehensive (loss) income (3,339 ) 221 Derivative designated as a net investment hedge: Foreign currency exchange contract Other comprehensive (loss) income 3,107 — Derivatives not designated as hedging instruments: Foreign currency exchange contracts Other operating (income) expense — 25 Foreign currency option contracts Other operating (income) expense 546 7 Interest rate swaps Interest and miscellaneous (expense) income, net (3,273 ) (1,862 ) Fuel hedge contracts Cost of sales (benefit) — 225 During the next 12 months, the amount of the June 30, 2015 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 $4.1 million . The following table contains the notional amounts of the derivative financial instruments recorded in the Consolidated Balance Sheets: Notional Amount June 30, 2015 December 31, 2014 Derivatives designated as cash flow hedges: Foreign currency exchange contracts $28,200 $28,540 Foreign currency option contracts 135,700 79,400 Derivative designated as a net investment hedge: Foreign currency exchange contract 23,828 27,419 Derivatives not designated as hedging instruments: Interest rate swaps 129,352 161,968 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, 2015 December 31, 2014 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Prepaid and other current assets — $132 Other assets — 59 Other current liabilities (2,197 ) (272 ) Other non-current liabilities (639 ) — Foreign currency option contracts Prepaid and other current assets — 299 Other assets — 198 Other current liabilities (3,614 ) (1,439 ) Other non-current liabilities (653 ) (196 ) Derivative designated as a net investment hedge: Foreign currency exchange contract Prepaid and other current assets 2,884 — Other current liabilities — (223 ) Derivatives not designated as hedging instruments: Interest rate swaps Other non-current liabilities (8,271 ) (7,247 ) Total derivative contracts: Prepaid and other current assets $2,884 $431 Other assets — 257 Total derivative assets 2,884 688 Other current liabilities (5,811 ) (1,934 ) Other non-current liabilities (9,563 ) (7,443 ) Total derivative liabilities ($15,374 ) ($9,377 ) (a) See Note 10 — 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. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair Value of Financial Instruments The Accounting Standards Codification established a three-level hierarchy that prioritizes the inputs used to measure fair value 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, 2015 and December 31, 2014 , using market information and what the Company believes to be appropriate valuation methodologies under generally accepted accounting principles: June 30, 2015 December 31, 2014 Asset (liability) Carrying Amount Fair Value Carrying Amount Fair Value Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $91,632 $91,632 — $161,558 $161,558 — Restricted cash (a) 2,528 2,528 — 6,688 6,688 — Current maturities of long-term debt (30,000 ) — (32,812 ) (129,706 ) — (156,762 ) Long-term debt (722,353 ) — (725,543 ) (621,849 ) — (628,476 ) Interest rate swaps (b) (8,271 ) — (8,271 ) (7,247 ) — (7,247 ) Foreign currency exchange contracts (b) 48 — 48 (304 ) — (304 ) Foreign currency option contracts (b) (4,267 ) — (4,267 ) (1,138 ) — (1,138 ) (a) Restricted cash is recorded in “Other Assets” and represents the proceeds from LKE sales deposited with a third-party intermediary. (b) See Note 9 — Derivative Financial Instruments and Hedging Activities for information regarding the Balance Sheet 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. |
GUARANTEES
GUARANTEES | 6 Months Ended |
Jun. 30, 2015 | |
Guarantees [Abstract] | |
Guarantees | GUARANTEES The Company provides financial guarantees as required by creditors, insurance programs, and various governmental agencies. As of June 30, 2015 , the following financial guarantees were outstanding: Financial Commitments Maximum Potential Payment Carrying Amount of Associated Liability Standby letters of credit (a) $16,685 $15,000 Guarantees (b) 2,254 43 Surety bonds (c) 776 — Total financial commitments $19,715 $15,043 (a) Approximately $15 million of the standby letters of credit serve as credit support for industrial revenue bonds. The remaining letters of credit support various insurance related agreements, primarily workers’ compensation. These letters of credit will expire at various dates during 2015 and will be renewed as required. (b) In conjunction with a timberland sale and note monetization in 2004, the Company issued a make-whole agreement pursuant to which it guaranteed $2.3 million of obligations of a special-purpose entity that was established to complete the monetization. At June 30, 2015 , the Company has a de minimis liability to reflect the fair market value of its obligation to perform under the make-whole agreement. (c) Rayonier issues surety bonds primarily to secure timber harvesting obligations in the State of Washington and to provide collateral for the Company’s workers’ compensation self-insurance program in that state. These surety bonds expire at various dates during 2015 and 2016 and are expected to be renewed as required. |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | CONTINGENCIES Following the Company’s November 10, 2014 earnings release and filing of the restated interim financial statements for the quarterly periods ended March 31, 2014 and June 30, 2014 (the “November 2014 Announcement”), shareholders of the Company filed five putative class actions against the Company and Paul G. Boynton, Hans E. Vanden Noort, David L. Nunes, and H. Edwin Kiker arising from circumstances described in the November 2014 Announcement, entitled respectively: • Sating v. Rayonier Inc. et al , Civil Action No. 3:14-cv-01395; filed November 12, 2014 in the United States District Court for the Middle District of Florida; • Keasler v. Rayonier Inc. et al , Civil Action No. 3:14-cv-01398, filed November 13, 2014 in the United States District Court for the Middle District of Florida; • Lake Worth Firefighters’ Pension Trust Fund v. Rayonier Inc. et al , Civil Action No. 3:14-cv-01403, filed November 13, 2014 in the United States District Court for the Middle District of Florida; • Christie v. Rayonier Inc. et al , Civil Action No. 3:14-cv-01429, filed November 21, 2014 in the United States District Court for the Middle District of Florida; and • Brown v. Rayonier Inc. et al , Civil Action No. 1:14-cv-08986, initially filed in the United States District Court for the Southern District of New York and later transferred to the United States District Court for the Middle District of Florida and assigned as Civil Action No. 3:14-cv-01474. On January 9, 2015, the five securities actions were consolidated into one putative class action entitled In re Rayonier Inc. Securities Litigation , Case No. 3:14-cv-01395-TJC-JBT, in the United States District Court for the Middle District of Florida. The plaintiffs alleged that the defendants made false and/or misleading statements in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The plaintiffs sought unspecified monetary damages and attorneys’ fees and costs. Two shareholders, the Pension Trust Fund for Operating Engineers and the Lake Worth Firefighters’ Pension Trust Fund moved for appointment as lead plaintiff on January 12, 2015, which was granted on February 25, 2015. On April 7, 2015, the plaintiffs filed a Consolidated Class Action Complaint (the “Amended Complaint”). In the Amended Complaint, plaintiffs added allegations as to and added as a defendant N. Lynn Wilson, a former officer of Rayonier. With the filing of the Amended Complaint, David L. Nunes and H. Edwin Kiker were dropped from the case as defendants. Defendants timely filed Motions to Dismiss on May 15, 2015. The court has set a hearing on the motion for August 25, 2015. At this preliminary stage, the Company cannot determine whether there is a reasonable likelihood a material loss has been incurred nor can the range of any such loss be estimated. On November 26, 2014, December 29, 2014, January 26, 2015, February 13, 2015, and May 12, 2015, the Company received separate letters from shareholders requesting that the Company investigate or pursue derivative claims against certain officers and directors related to the November 2014 Announcement. Although these demands do not identify any claims against the Company, the Company could potentially incur certain obligations to advance expenses and provide indemnification to certain current and former officers and directors of the Company. The Company may also incur expenses as a result of any costs arising from the investigation of the claims alleged in the various demands. At this preliminary stage, the ultimate outcome of these matters cannot be predicted, nor can the range of potential expenses the Company may incur as a result of the obligations identified above be estimated. In November 2014, the Company received a subpoena from the SEC seeking documents related to the Company’s amended reports filed with the SEC on November 10, 2014. The Company is cooperating with the SEC and complying with the subpoena. The Company does not currently believe that the investigation will have a material impact on the Company’s financial condition, results of operations, or cash flow, but cannot predict the timing or outcome of the SEC investigation. The Company has also been named as a defendant in various other 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 self-insurance, primarily in the areas of workers’ compensation, property insurance 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. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2015 | |
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 . Currently, the pension plans are closed to new participants. 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. In the first quarter of 2015, the Company lowered its return on asset assumption from 8.5 percent to 7.7 percent for 2015. The net pension and postretirement benefit costs that have been recorded are shown in the following table: Pension Postretirement Three Months Ended Three Months Ended 2015 2014 2015 2014 Components of Net Periodic Benefit Cost Service cost $371 $1,544 $3 $147 Interest cost 830 4,452 13 199 Expected return on plan assets (1,007 ) (6,330 ) — — Amortization of prior service cost 3 277 — 4 Amortization of losses 916 2,603 3 116 Amortization of negative plan amendment — — — (133 ) Net periodic benefit cost (a) $1,113 $2,546 $19 $333 Pension Postretirement Six Months Ended Six Months Ended 2015 2014 2015 2014 Components of Net Periodic Benefit Cost Service cost $742 $3,168 $6 $326 Interest cost 1,659 9,135 26 405 Expected return on plan assets (2,014 ) (12,988 ) — — Amortization of prior service cost 6 569 — 8 Amortization of losses 1,849 5,340 6 245 Amortization of negative plan amendment — — — (267 ) Net periodic benefit cost (a) $2,242 $5,224 $38 $717 (a) Net periodic benefit cost for the three and six months ended June 30, 2014 includes $2.0 million and $4.0 million , respectively, recorded in “Income from discontinued operations, net” on the Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income. In 2015 , the Company has no mandatory pension contribution requirement. |
INVENTORY
INVENTORY | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY In the first quarter of 2015, Rayonier reclassified seeds and seedlings from Inventory and Other Assets to Timber and Timberlands, Net to better reflect the intended use of the assets, as discussed at Note 1 — Basis of Presentation . As of June 30, 2015 and December 31, 2014 , Rayonier’s inventory was solely comprised of finished goods, as follows: June 30, 2015 December 31, 2014 Finished goods inventory Real estate inventory (a) $8,035 $4,932 Log inventory 5,327 3,451 Total inventory $13,362 $8,383 (a) Represents HBU real estate (including capitalized development costs) expected to be sold within 12 months. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | DEBT As of March 31, 2015 , the Senior Exchangeable Notes due 2015 were exchangeable at the option of the holders for the calendar quarter ended June 30, 2015. According to the indenture, the notes became exchangeable on May 15, 2015 through maturity. The notes mature in August of 2015 and the Company has both the ability and intent to refinance $100 million of these notes. Therefore, this amount is classified as long-term debt. Approximately $30 million of the exchangeable notes are expected to be paid with the Company’s available cash and, as such, are classified as current maturities of long-term debt as of June 30, 2015 . Net draws of $ 27.0 million were made in the second quarter of 2015 on the revolving credit facility. At June 30, 2015 , the Company had available borrowings of $ 153.2 million under the revolving credit facility, net of $1.8 million to secure its outstanding letters of credit, and additional draws available of $ 100 million under the term credit agreement. As of June 30, 2015 , the New Zealand JV had $160 million of long-term variable rate debt maturing in September 2016. This debt is subject to interest rate risk resulting from changes in the 90 -day New Zealand Bank bill rate (“BKBM”). However, the New Zealand JV uses interest rate swaps to manage its exposure to interest rate movements on its bank loan by swapping a portion of these borrowings from floating rates to fixed rates. The notional amount of the outstanding interest rate swap contracts at June 30, 2015 was $129.0 million , or 81 percent of the variable rate debt. The interest rate swap contracts have maturities extending through January 2020 . The periodic interest rate on New Zealand JV debt is BKBM plus 80 basis points with an additional 80 basis point credit line fee. The Company estimates the periodic effective interest rate on New Zealand JV debt for the second quarter was approximately 6.5% after consideration of interest rate swaps. During the six months ended June 30, 2015 , the New Zealand JV had made additional borrowings and repayments of $2.1 million on its working capital facility. Additional draws totaling $16 million remain available on the working capital facility. In addition, the New Zealand JV paid $1.4 million of its shareholder loan held with the non-controlling interest party. Favorable changes in exchange rates through June 30, 2015 decreased debt on a U.S. dollar basis for the revolving facility and shareholder loan by $24.1 million and $3.5 million , respectively. There were no other significant changes to the Company’s outstanding debt as reported in Note 13 — Debt in the 2014 Form 10-K. Subsequent Event On August 5, 2015, the Company announced the closing of a nine -year $ 350 million term loan facility and a five -year $ 200 million revolving credit facility (the “Credit Agreement”). In addition, the Company has entered into an interest rate swap transaction to fix the cost of the term loan facility over its nine -year term. Based on the swap rate, the company’s current leverage ratio and the pricing grid, the all-in fixed-rate cost of the term loan facility (net of estimated patronage payments) is expected to be approximately 3.3% and the floating-rate cost of the revolving credit facility will be LIBOR + 1.25% . The Company intends to use approximately $160 million of proceeds from the term loan facility to fund a capital infusion into the New Zealand JV, which the New Zealand JV will in turn use for repayment of all outstanding amounts under its existing NZ $235 million credit facility plus NZ $7 million of related fees and expenses (assuming an exchange rate of US$0.66 per NZ $1.00 ). The investment into the New Zealand JV is subject to certain closing conditions, including New Zealand Overseas Investment Office approval and the preparation of customary transaction documents. The remaining proceeds of the term loan facility will be used to fund repayment of the company’s 4.50% senior exchangeable notes maturing August 2015 (approximately $131 million ), to fund repayment of amounts outstanding under the Company’s existing revolving credit facility (approximately $45 million ), to pay transaction fees and expenses (approximately $2 million ), and for cash and general corporate purposes (approximately $12 million ). In order to provide timing flexibility with respect to the New Zealand JV recapitalization, the term loan facility provides that proceeds can be drawn in up to two advances for up to eight months post-closing. The Credit Agreement contains financial covenants related to leverage and interest coverage, as well as other affirmative and negative covenants relating to, among other things, dividends, liens, mergers, dispositions of timber and timberlands, subsidiary debt, sales and issuances of capital stock of subsidiaries, and affiliate transactions. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 6 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) The following table summarizes the changes in AOCI by component for the six months ended June 30, 2015 and the year ended December 31, 2014. All amounts are presented net of tax and exclude portions attributable to noncontrolling interest. Foreign currency translation gains/ (losses) Net investment hedge of New Zealand JV New Zealand JV cash flow hedges Unrecognized components of employee benefit plans Total Balance as of December 31, 2013 $36,914 — ($342 ) ($82,711 ) ($46,139 ) Other comprehensive income/(loss) before reclassifications (11,381 ) (145 ) 510 47,938 (a) 36,922 Amounts reclassified from accumulated other comprehensive loss — — (1,716 ) 6,108 (b) 4,392 Net other comprehensive income/(loss) (11,381 ) (145 ) (1,206 ) 54,046 41,314 Balance as of December 31, 2014 $25,533 ($145 ) ($1,548 ) ($28,665 ) ($4,825 ) Other comprehensive income/(loss) before reclassifications (30,456 ) 2,019 (3,700 ) — (32,137 ) Amounts reclassified from accumulated other comprehensive loss — — 1,188 1,524 (c) 2,712 Net other comprehensive income/(loss) (30,456 ) 2,019 (2,512 ) 1,524 (29,425 ) Balance as of June 30, 2015 ($4,923 ) $1,874 ($4,060 ) ($27,141 ) ($34,250 ) (a) Reflects $ 78 million , net of taxes, of comprehensive income due to the transfer of losses to Rayonier Advanced Materials Pension Plans. This comprehensive income was offset by $ 30 million , net of taxes, of losses as a result of revaluations required due to the spin-off at December 31, 2014. See Note 22 — Employee Benefit Plans in the 2014 Form 10-K for additional information. (b) This accumulated other comprehensive income component is comprised of $ 5 million from the computation of net periodic pension cost and the $1 million write-off of a deferred tax asset related to the revaluation and transfer of liabilities as a result of the spin-off. (c) This component of other comprehensive income is included in the computation of net periodic pension cost. See Note 13 — 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, 2015 and June 30, 2014: Details about accumulated other comprehensive income components Amount reclassified from accumulated other comprehensive income Affected line item in the income statement June 30, 2015 June 30, 2014 Realized loss (gain) on foreign currency exchange contracts $1,504 ($2,542 ) Other operating income, net Realized loss (gain) on foreign currency option contracts 1,035 (937 ) Other operating income, net Noncontrolling interest (889 ) 1,218 Comprehensive (loss) income attributable to noncontrolling interest Income tax (benefit) expense on loss from foreign currency contracts (462 ) 254 Income tax benefit Net gain on cash flow hedges reclassified from accumulated other comprehensive income 1,188 (2,007 ) Income tax expense on pension plan contributed to Rayonier Advanced Materials — 843 Income tax expense Net loss (gain) from accumulated other comprehensive income $1,188 ($1,164 ) |
OTHER OPERATING INCOME, NET
OTHER OPERATING INCOME, NET | 6 Months Ended |
Jun. 30, 2015 | |
Other Income and Expenses [Abstract] | |
Other Operating Income, Net | OTHER OPERATING INCOME, NET Other operating income, net comprised the following: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Lease income, primarily from hunting leases $5,890 $3,966 $9,999 $7,003 Other non-timber income 688 440 2,052 993 Foreign currency income (loss) 108 1,232 215 (255 ) Gain (loss) on sale or disposal of property, plant & equipment 3 (20 ) 3 (20 ) (Loss) gain on foreign currency exchange contracts (645 ) — (994 ) (32 ) Bankruptcy claim settlement — 5,779 — 5,779 Gain (loss) on sale of carbon credits (a) 352 (307 ) 352 (307 ) Miscellaneous income (expense), net 742 299 1,086 (1,397 ) Total $7,138 $11,389 $12,713 $11,764 (a) Loss in 2014 reflects surrender of carbon credit units. |
CONSOLIDATING FINANCIAL STATEME
CONSOLIDATING FINANCIAL STATEMENTS | 6 Months Ended |
Jun. 30, 2015 | |
CONSOLIDATING FINANCIAL STATEMENTS [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 August 2009 , Rayonier TRS Holdings Inc. issued $172.5 million of 4.50% Senior Exchangeable Notes due August 2015 . The notes are guaranteed by Rayonier Inc. as the Parent Guarantor and Rayonier Operating Company LLC (“ROC”) as the Subsidiary Guarantor. In connection with these exchangeable 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 issuer and subsidiary guarantor 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 subsidiary and Rayonier Inc. CONDENSED CONSOLIDATING STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME For the Three Months Ended June 30, 2015 Rayonier Inc. (Parent Guarantor) ROC (Subsidiary Guarantor) Rayonier TRS Holdings Inc. (Issuer) Non- guarantors Consolidating Adjustments Total Consolidated SALES — — — $115,801 — $115,801 Costs and Expenses Cost of sales — — — 103,689 — 103,689 Selling and general expenses — 6,330 — 6,397 — 12,727 Other operating expense (income), net — (461 ) — (6,677 ) — (7,138 ) — 5,869 — 103,409 — 109,278 OPERATING (LOSS) INCOME — (5,869 ) — 12,392 — 6,523 Interest expense (3,169 ) (131 ) (2,409 ) (2,774 ) — (8,483 ) Interest and miscellaneous income (expense), net 1,871 817 (137 ) (3,747 ) — (1,196 ) Equity in (loss) income from subsidiaries (238 ) 4,966 2,796 — (7,524 ) — (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (1,536 ) (217 ) 250 5,871 (7,524 ) (3,156 ) Income tax (expense) benefit — (21 ) 948 (631 ) — 296 NET (LOSS) INCOME (1,536 ) (238 ) 1,198 5,240 (7,524 ) (2,860 ) Less: Net loss attributable to noncontrolling interest — — — (1,324 ) — (1,324 ) NET (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. (1,536 ) (238 ) 1,198 6,564 (7,524 ) (1,536 ) OTHER COMPREHENSIVE LOSS Foreign currency translation adjustment (18,008 ) (18,008 ) (74 ) (25,395 ) 36,090 (25,395 ) New Zealand joint venture cash flow hedges (1,896 ) (1,896 ) (1,896 ) (2,917 ) 5,688 (2,917 ) Amortization of pension and postretirement plans, net of income tax 743 743 (5 ) (5 ) (733 ) 743 Total other comprehensive loss (19,161 ) (19,161 ) (1,975 ) (28,317 ) 41,045 (27,569 ) COMPREHENSIVE LOSS (20,697 ) (19,399 ) (777 ) (23,077 ) 33,521 (30,429 ) Less: Comprehensive loss attributable to noncontrolling interest — — — (9,730 ) (1 ) (9,731 ) COMPREHENSIVE LOSS ATTRIBUTABLE TO RAYONIER INC. ($20,697 ) ($19,399 ) ($777 ) ($13,347 ) $33,522 ($20,698 ) CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended June 30, 2014 Rayonier Inc. (Parent Guarantor ) ROC (Subsidiary Guarantor) Rayonier TRS Holdings Inc. (Issuer) Non- guarantors Consolidating Adjustments Total Consolidated SALES — — — $163,145 — $163,145 Costs and Expenses Cost of sales — — — 123,096 — 123,096 Selling and general expenses — 2,394 — 11,467 — 13,861 Other operating expense (income), net — 1,573 — (12,962 ) — (11,389 ) — 3,967 — 121,601 — 125,568 OPERATING (LOSS) INCOME — (3,967 ) — 41,544 — 37,577 Interest expense (3,196 ) (225 ) (10,982 ) (1,209 ) — (15,612 ) Interest and miscellaneous income (expense), net 2,733 (3,003 ) (1,098 ) (3,017 ) — (4,385 ) Equity in income (loss) from subsidiaries 16,814 23,549 (54,081 ) — 13,718 — INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 16,351 16,354 (66,161 ) 37,318 13,718 17,580 Income tax benefit (expense) — 460 4,409 (18,425 ) — (13,556 ) INCOME (LOSS) FROM CONTINUING OPERATIONS 16,351 16,814 (61,752 ) 18,893 13,718 4,024 DISCONTINUED OPERATIONS, NET Income from discontinued operations, net of income taxes — — — 12,084 — 12,084 NET INCOME (LOSS) 16,351 16,814 (61,752 ) 30,977 13,718 16,108 Less: Net loss attributable to noncontrolling interest — — — (245 ) — (245 ) NET INCOME (LOSS) ATTRIBUTABLE TO RAYONIER INC. 16,351 16,814 (61,752 ) 31,222 13,718 16,353 OTHER COMPREHENSIVE INCOME Foreign currency translation adjustment 2,653 2,653 513 3,517 (5,819 ) 3,517 New Zealand joint venture cash flow hedges (598 ) (598 ) (598 ) (920 ) 1,794 (920 ) Amortization of pension and postretirement plans, net of income tax 58,873 58,873 92,714 92,714 (244,301 ) 58,873 Total other comprehensive income 60,928 60,928 92,629 95,311 (248,326 ) 61,470 COMPREHENSIVE INCOME 77,279 77,742 30,877 126,288 (234,608 ) 77,578 Less: Comprehensive income attributable to noncontrolling interest — — — 297 — 297 COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. $77,279 $77,742 $30,877 $125,991 ($234,608 ) $77,281 CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Six Months Ended June 30, 2015 Rayonier Inc. (Parent Guarantor) ROC (Subsidiary Guarantor) Rayonier TRS Holdings Inc. (Issuer) Non- guarantors Consolidating Adjustments Total Consolidated SALES — — — $256,106 — $256,106 Costs and Expenses Cost of sales — — — 210,923 — 210,923 Selling and general expenses — 11,279 — 12,347 — 23,626 Other operating income, net — (461 ) — (12,252 ) — (12,713 ) — 10,818 — 211,018 — 221,836 OPERATING (LOSS) INCOME — (10,818 ) — 45,088 — 34,270 Interest expense (6,337 ) (223 ) (4,841 ) (5,626 ) — (17,027 ) Interest and miscellaneous income (expense), net 3,807 1,654 (281 ) (7,871 ) — (2,691 ) Equity in income from subsidiaries 18,741 28,149 4,223 — (51,113 ) — INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 16,211 18,762 (899 ) 31,591 (51,113 ) 14,552 Income tax (expense) benefit — (21 ) 1,908 (1,119 ) — 768 NET INCOME 16,211 18,741 1,009 30,472 (51,113 ) 15,320 Less: Net loss attributable to noncontrolling interest — — — (891 ) — (891 ) NET INCOME ATTRIBUTABLE TO RAYONIER INC. 16,211 18,741 1,009 31,363 (51,113 ) 16,211 OTHER COMPREHENSIVE LOSS Foreign currency translation adjustment (28,438 ) (28,438 ) (926 ) (39,718 ) 57,803 (39,717 ) New Zealand joint venture cash flow hedges (2,511 ) (2,511 ) (2,511 ) (3,863 ) 7,533 (3,863 ) Amortization of pension and postretirement plans, net of income tax 1,524 1,524 15 15 (1,554 ) 1,524 Total other comprehensive loss (29,425 ) (29,425 ) (3,422 ) (43,566 ) 63,782 (42,056 ) COMPREHENSIVE LOSS (13,214 ) (10,684 ) (2,413 ) (13,094 ) 12,669 (26,736 ) Less: Comprehensive loss attributable to noncontrolling interest — — — (13,522 ) — (13,522 ) COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. ($13,214 ) ($10,684 ) ($2,413 ) $428 $12,669 ($13,214 ) CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Six Months Ended June 30, 2014 Rayonier Inc. (Parent Guarantor) ROC (Subsidiary Guarantor) Rayonier TRS Holdings Inc. (Issuer) Non-guarantors Consolidating Adjustments Total Consolidated SALES — — — $306,332 — $306,332 Costs and Expenses Cost of sales — — — 238,995 — 238,995 Selling and general expenses — 4,544 — 22,554 — 27,098 Other operating expense (income), net — 3,948 — (15,712 ) — (11,764 ) — 8,492 — 245,837 — 254,329 OPERATING (LOSS) INCOME — (8,492 ) — 60,495 — 52,003 Interest expense (6,389 ) (468 ) (17,672 ) (1,757 ) — (26,286 ) Interest and miscellaneous income (expense), net 5,431 (2,189 ) (2,145 ) (6,494 ) — (5,397 ) Equity in income (loss) from subsidiaries 58,737 70,049 (22,951 ) — (105,835 ) — INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 57,779 58,900 (42,768 ) 52,244 (105,835 ) 20,320 Income tax (expense) benefit — (163 ) 7,233 (13,031 ) — (5,961 ) INCOME (LOSS) FROM CONTINUING OPERATIONS 57,779 58,737 (35,535 ) 39,213 (105,835 ) 14,359 DISCONTINUED OPERATIONS, NET Income from discontinued operations, net of income taxes — — — 43,092 — 43,092 NET INCOME (LOSS) 57,779 58,737 (35,535 ) 82,305 (105,835 ) 57,451 Less: Net loss attributable to noncontrolling interest — — — (328 ) — (328 ) NET INCOME (LOSS) ATTRIBUTABLE TO RAYONIER INC. 57,779 58,737 (35,535 ) 82,633 (105,835 ) 57,779 OTHER COMPREHENSIVE INCOME Foreign currency translation adjustment 15,547 15,547 1,279 21,312 (32,365 ) 21,320 New Zealand joint venture cash flow hedges 514 514 514 791 (1,542 ) 791 Amortization of pension and postretirement plans, net of income tax 60,970 60,970 94,334 94,334 (249,638 ) 60,970 Total other comprehensive income 77,031 77,031 96,127 116,437 (283,545 ) 83,081 COMPREHENSIVE INCOME 134,810 135,768 60,592 198,742 (389,380 ) 140,532 Less: Comprehensive income attributable to noncontrolling interest — — — 5,722 — 5,722 COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. $134,810 $135,768 $60,592 $193,020 ($389,380 ) $134,810 CONDENSED CONSOLIDATING BALANCE SHEETS As of June 30, 2015 Rayonier Inc. (Parent Guarantor) ROC (Subsidiary Guarantor) Rayonier TRS Holdings Inc. (Issuer) Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $5,366 $94 $45,847 $40,325 — $91,632 Accounts receivable, less allowance for doubtful accounts — — 91 19,353 — 19,444 Inventory — — — 13,362 — 13,362 Prepaid and other current assets — 1,855 3,008 16,359 — 21,222 Total current assets 5,366 1,949 48,946 89,399 — 145,660 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — — 2,086,729 — 2,086,729 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS — — — 69,726 — 69,726 NET PROPERTY, PLANT AND EQUIPMENT — 480 — 5,954 — 6,434 INVESTMENT IN SUBSIDIARIES 1,516,408 2,182,721 843,077 — (4,542,206 ) — INTERCOMPANY NOTES RECEIVABLE 252,815 — 21,928 — (274,743 ) — OTHER ASSETS 2,570 16,476 1,325 37,401 — 57,772 TOTAL ASSETS $1,777,159 $2,201,626 $915,276 $2,289,209 ($4,816,949 ) $2,366,321 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable — $3,434 $83 $18,879 — $22,396 Current maturities of long-term debt — — 30,000 — — 30,000 Accrued taxes — 14 — 15,797 — 15,811 Accrued payroll and benefits — 2,476 — 2,120 — 4,596 Accrued interest 3,046 (12 ) 2,505 35,499 (32,995 ) 8,043 Other current liabilities — 2,420 9,570 19,624 — 31,614 Total current liabilities 3,046 8,332 42,158 91,919 (32,995 ) 112,460 LONG-TERM DEBT 370,000 — 115,972 236,381 — 722,353 PENSION AND OTHER POSTRETIREMENT BENEFITS — 34,081 — (685 ) — 33,396 OTHER NON-CURRENT LIABILITIES — 6,615 — 14,225 — 20,840 INTERCOMPANY PAYABLE — 636,190 — (254,315 ) (381,875 ) — TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,404,113 1,516,408 757,146 2,128,525 (4,402,079 ) 1,404,113 Noncontrolling interest — — — 73,159 — 73,159 TOTAL SHAREHOLDERS’ EQUITY 1,404,113 1,516,408 757,146 2,201,684 (4,402,079 ) 1,477,272 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,777,159 $2,201,626 $915,276 $2,289,209 ($4,816,949 ) $2,366,321 CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2014 Rayonier Inc. (Parent Guarantor) ROC (Subsidiary Guarantor) Rayonier TRS Holdings Inc. (Issuer) Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $102,218 $11 $8,094 $51,235 — $161,558 Accounts receivable, less allowance for doubtful accounts — — 1,409 22,609 — 24,018 Inventory — — — 8,383 — 8,383 Prepaid and other current assets — 2,003 6 17,736 — 19,745 Total current assets 102,218 2,014 9,509 99,963 — 213,704 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — — 2,088,501 — 2,088,501 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS — — — 77,433 — 77,433 NET PROPERTY, PLANT AND EQUIPMENT — 433 — 6,273 — 6,706 INVESTMENT IN SUBSIDIARIES 1,463,303 1,923,185 640,678 — (4,027,166 ) — INTERCOMPANY NOTES RECEIVABLE 248,233 — 21,500 — (269,733 ) — OTHER ASSETS 2,763 16,610 1,759 45,639 — 66,771 TOTAL ASSETS $1,816,517 $1,942,242 $673,446 $2,317,809 ($4,296,899 ) $2,453,115 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable — $2,687 $123 $17,401 — $20,211 Current maturities of long-term debt — — 129,706 — — 129,706 Accrued taxes — 11 — 11,394 — 11,405 Accrued payroll and benefits — 3,253 — 3,137 — 6,390 Accrued interest 3,047 (3 ) 2,520 31,281 (28,412 ) 8,433 Other current liabilities — 928 145 24,784 — 25,857 Total current liabilities 3,047 6,876 132,494 87,997 (28,412 ) 202,002 LONG-TERM DEBT 325,000 — 31,000 265,849 — 621,849 PENSION AND OTHER POSTRETIREMENT BENEFITS — 34,161 — (684 ) — 33,477 OTHER NON-CURRENT LIABILITIES — 6,436 — 14,200 — 20,636 INTERCOMPANY PAYABLE — 431,466 — (153,754 ) (277,712 ) — TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,488,470 1,463,303 509,952 2,017,520 (3,990,775 ) 1,488,470 Noncontrolling interest — — — 86,681 — 86,681 TOTAL SHAREHOLDERS’ EQUITY 1,488,470 1,463,303 509,952 2,104,201 (3,990,775 ) 1,575,151 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,816,517 $1,942,242 $673,446 $2,317,809 ($4,296,899 ) $2,453,115 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2015 Rayonier Inc. (Parent Guarantor) ROC (Subsidiary Guarantor) Rayonier TRS Holdings Inc. (Issuer) Non- guarantors Consolidating Adjustments Total Consolidated CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES ($25,092 ) ($13,561 ) — $110,401 $14,135 $85,883 INVESTING ACTIVITIES Capital expenditures — (134 ) — (25,996 ) — (26,130 ) Real estate development costs — — — (578 ) — (578 ) Purchase of timberlands — — — (88,414 ) — (88,414 ) Change in restricted cash — — — 4,160 — 4,160 Investment in Subsidiaries — — 8,753 — (8,753 ) — Other — — — 3,689 — 3,689 CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES — (134 ) 8,753 (107,139 ) (8,753 ) (107,273 ) FINANCING ACTIVITIES Issuance of debt — — 57,000 2,100 — 59,100 Repayment of debt — — (28,000 ) (3,472 ) — (31,472 ) Dividends paid (63,421 ) — — — — (63,421 ) Proceeds from the issuance of common shares 718 — — — — 718 Repurchase of common shares (9,057 ) — — — — (9,057 ) Intercompany distributions — 13,778 — (8,396 ) (5,382 ) — CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES (71,760 ) 13,778 29,000 (9,768 ) (5,382 ) (44,132 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH — — — (4,404 ) — (4,404 ) CASH AND CASH EQUIVALENTS Change in cash and cash equivalents (96,852 ) 83 37,753 (10,910 ) — (69,926 ) Balance, beginning of year 102,218 11 8,094 51,235 — 161,558 Balance, end of period $5,366 $94 $45,847 $40,325 — $91,632 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2014 Rayonier Inc. (Parent Guarantor) ROC (Subsidiary Guarantor) Rayonier TRS Holdings Inc. (Issuer) Non- guarantors Consolidating Adjustments Total Consolidated CASH PROVIDED BY OPERATING ACTIVITIES $138,535 $150,518 — $87,098 ($147,007 ) $229,144 INVESTING ACTIVITIES Capital expenditures — (201 ) — (33,396 ) — (33,597 ) Capital expenditures from discontinued operations — — — (47,050 ) — (47,050 ) Real estate development costs — — — (2,595 ) — (2,595 ) Purchase of timberlands — — — (74,817 ) — (74,817 ) Change in restricted cash — — — 63,128 — 63,128 Investment in Subsidiaries — — (62,800 ) — 62,800 — Other — — — (478 ) — (478 ) CASH USED FOR INVESTING ACTIVITIES — (201 ) (62,800 ) (95,208 ) 62,800 (95,409 ) FINANCING ACTIVITIES Issuance of debt — — 1,238,389 — — 1,238,389 Repayment of debt — — (1,107,062 ) — — (1,107,062 ) Dividends paid (124,628 ) — — — — (124,628 ) Proceeds from the issuance of common shares 3,347 — — — — 3,347 Repurchase of common shares (1,834 ) — — — — (1,834 ) Debt issuance costs — — (12,380 ) — — (12,380 ) Net cash disbursed upon spin-off of Performance Fibers business (106,420 ) — — — — (106,420 ) Intercompany distributions — (149,525 ) — 65,318 84,207 — Other — — — (680 ) — (680 ) CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES (229,535 ) (149,525 ) 118,947 64,638 84,207 (111,268 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH — — — (50 ) — (50 ) CASH AND CASH EQUIVALENTS Change in cash and cash equivalents (91,000 ) 792 56,147 56,478 — 22,417 Balance, beginning of year 130,181 304 10,719 58,440 — 199,644 Balance, end of period $39,181 $1,096 $66,866 $114,918 — $222,061 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, 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 (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME For the Three Months Ended June 30, 2015 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated SALES — — $115,801 — $115,801 Costs and Expenses Cost of sales — — 103,689 — 103,689 Selling and general expenses — 6,330 6,397 — 12,727 Other operating income, net — (461 ) (6,677 ) — (7,138 ) — 5,869 103,409 — 109,278 OPERATING (LOSS) INCOME — (5,869 ) 12,392 — 6,523 Interest expense (3,169 ) (2,540 ) (2,774 ) — (8,483 ) Interest and miscellaneous income (expense), net 1,871 680 (3,747 ) — (1,196 ) Equity in (loss) income from subsidiaries (238 ) 6,564 — (6,326 ) — (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (1,536 ) (1,165 ) 5,871 (6,326 ) (3,156 ) Income tax benefit (expense) — 927 (631 ) — 296 NET (LOSS) INCOME (1,536 ) (238 ) 5,240 (6,326 ) (2,860 ) Less: Net loss attributable to noncontrolling interest — — (1,324 ) — (1,324 ) NET (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. (1,536 ) (238 ) 6,564 (6,326 ) (1,536 ) OTHER COMPREHENSIVE LOSS Foreign currency translation adjustment (18,008 ) (18,008 ) (25,395 ) 36,016 (25,395 ) New Zealand joint venture cash flow hedges (1,896 ) (1,896 ) (2,917 ) 3,792 (2,917 ) Amortization of pension and postretirement plans, net of income tax 743 743 (5 ) (738 ) 743 Total other comprehensive loss (19,161 ) (19,161 ) (28,317 ) 39,070 (27,569 ) COMPREHENSIVE LOSS (20,697 ) (19,399 ) (23,077 ) 32,744 (30,429 ) Less: Comprehensive loss attributable to noncontrolling interest — — (9,730 ) (1 ) (9,731 ) COMPREHENSIVE LOSS ATTRIBUTABLE TO RAYONIER INC. ($20,697 ) ($19,399 ) ($13,347 ) $32,745 ($20,698 ) CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended June 30, 2014 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated SALES — — $163,145 — $163,145 Costs and Expenses Cost of sales — — 123,096 — 123,096 Selling and general expenses — 2,394 11,467 — 13,861 Other operating expense (income), net — 1,573 (12,962 ) — (11,389 ) — 3,967 121,601 — 125,568 OPERATING (LOSS) INCOME — (3,967 ) 41,544 — 37,577 Interest expense (3,196 ) (11,207 ) (1,209 ) — (15,612 ) Interest and miscellaneous income (expense), net 2,733 (4,101 ) (3,017 ) — (4,385 ) Equity in income from subsidiaries 16,814 31,220 — (48,034 ) — INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 16,351 11,945 37,318 (48,034 ) 17,580 Income tax benefit (expense) — 4,869 (18,425 ) — (13,556 ) INCOME FROM CONTINUING OPERATIONS 16,351 16,814 18,893 (48,034 ) 4,024 DISCONTINUED OPERATIONS, NET Income from discontinued operations, net of income taxes — — 12,084 — 12,084 NET INCOME 16,351 16,814 30,977 (48,034 ) 16,108 Less: Net loss attributable to noncontrolling interest — — (245 ) — (245 ) NET INCOME ATTRIBUTABLE TO RAYONIER INC. 16,351 16,814 31,222 (48,034 ) 16,353 OTHER COMPREHENSIVE INCOME Foreign currency translation adjustment 2,653 2,655 3,517 (5,308 ) 3,517 New Zealand joint venture cash flow hedges (598 ) (598 ) (920 ) 1,196 (920 ) Amortization of pension and postretirement plans, net of income tax 58,873 58,873 92,714 (151,587 ) 58,873 Total other comprehensive income 60,928 60,930 95,311 (155,699 ) 61,470 COMPREHENSIVE INCOME 77,279 77,744 126,288 (203,733 ) 77,578 Less: Comprehensive income attributable to noncontrolling interest — — 297 — 297 COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. $77,279 $77,744 $125,991 ($203,733 ) $77,281 CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Six Months Ended June 30, 2015 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated SALES — — $256,106 — $256,106 Costs and Expenses Cost of sales — — 210,923 — 210,923 Selling and general expenses — 11,279 12,347 — 23,626 Other operating income, net — (461 ) (12,252 ) — (12,713 ) — 10,818 211,018 — 221,836 OPERATING (LOSS) INCOME — (10,818 ) 45,088 — 34,270 Interest expense (6,337 ) (5,064 ) (5,626 ) — (17,027 ) Interest and miscellaneous income (expense), net 3,807 1,373 (7,871 ) — (2,691 ) Equity in income from subsidiaries 18,741 31,363 — (50,104 ) — INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 16,211 16,854 31,591 (50,104 ) 14,552 Income tax benefit (expense) — 1,887 (1,119 ) — 768 NET INCOME 16,211 18,741 30,472 (50,104 ) 15,320 Less: Net loss attributable to noncontrolling interest — — (891 ) — (891 ) NET INCOME ATTRIBUTABLE TO RAYONIER INC. 16,211 18,741 31,363 (50,104 ) 16,211 OTHER COMPREHENSIVE LOSS Foreign currency translation adjustment (28,438 ) (28,438 ) (39,718 ) 56,877 (39,717 ) New Zealand joint venture cash flow hedges (2,511 ) (2,511 ) (3,863 ) 5,022 (3,863 ) Amortization of pension and postretirement plans, net of income tax 1,524 1,524 15 (1,539 ) 1,524 Total other comprehensive loss (29,425 ) (29,425 ) (43,566 ) 60,360 (42,056 ) COMPREHENSIVE LOSS (13,214 ) (10,684 ) (13,094 ) 10,256 (26,736 ) Less: Comprehensive loss attributable to noncontrolling interest — — (13,522 ) — (13,522 ) COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. ($13,214 ) ($10,684 ) $428 $10,256 ($13,214 ) CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Six Months Ended June 30, 2014 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- Consolidating Adjustments Total Consolidated SALES — — $306,332 — $306,332 Costs and Expenses Cost of sales — — 238,995 — 238,995 Selling and general expenses — 4,544 22,554 — 27,098 Other operating expense (income), net — 3,948 (15,712 ) — (11,764 ) — 8,492 245,837 — 254,329 OPERATING (LOSS) INCOME — (8,492 ) 60,495 — 52,003 Interest expense (6,389 ) (18,140 ) (1,757 ) — (26,286 ) Interest and miscellaneous income (expense), net 5,431 (4,334 ) (6,494 ) — (5,397 ) Equity in income from subsidiaries 58,737 82,633 — (141,370 ) — INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 57,779 51,667 52,244 (141,370 ) 20,320 Income tax benefit (expense) — 7,070 (13,031 ) — (5,961 ) INCOME FROM CONTINUING OPERATIONS 57,779 58,737 39,213 (141,370 ) 14,359 DISCONTINUED OPERATIONS, NET Income from discontinued operations, net of income tax — — 43,092 — 43,092 NET INCOME 57,779 58,737 82,305 (141,370 ) 57,451 Less: Net loss attributable to noncontrolling interest — — (328 ) — (328 ) NET INCOME ATTRIBUTABLE TO RAYONIER INC. 57,779 58,737 82,633 (141,370 ) 57,779 OTHER COMPREHENSIVE INCOME Foreign currency translation adjustment 15,547 15,547 21,312 (31,086 ) 21,320 New Zealand joint venture cash flow hedges 514 514 791 (1,028 ) 791 Amortization of pension and postretirement plans, net of income tax 60,970 60,970 94,334 (155,304 ) 60,970 Total other comprehensive income 77,031 77,031 116,437 (187,418 ) 83,081 COMPREHENSIVE INCOME 134,810 135,768 198,742 (328,788 ) 140,532 Less: Comprehensive income attributable to noncontrolling interest — — 5,722 — 5,722 COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. $134,810 $135,768 $193,020 ($328,788 ) $134,810 CONDENSED CONSOLIDATING BALANCE SHEETS As of June 30, 2015 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $5,366 $45,941 $40,325 — $91,632 Accounts receivable, less allowance for doubtful accounts — 91 19,353 — 19,444 Inventory — — 13,362 — 13,362 Prepaid and other current assets — 4,863 16,359 — 21,222 Total current assets 5,366 50,895 89,399 — 145,660 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — 2,086,729 — 2,086,729 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS — — 69,726 — 69,726 NET PROPERTY, PLANT AND EQUIPMENT — 480 5,954 — 6,434 INVESTMENT IN SUBSIDIARIES 1,516,408 2,268,652 — (3,785,060 ) — INTERCOMPANY NOTES RECEIVABLE 252,815 21,928 — (274,743 ) — OTHER ASSETS 2,570 17,801 37,401 — 57,772 TOTAL ASSETS $1,777,159 $2,359,756 $2,289,209 ($4,059,803 ) $2,366,321 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable — $3,517 $18,879 — $22,396 Current maturities of long-term debt — 30,000 — — 30,000 Accrued taxes — 14 15,797 — 15,811 Accrued payroll and benefits — 2,476 2,120 — 4,596 Accrued interest 3,046 2,493 35,499 (32,995 ) 8,043 Other current liabilities — 11,990 19,624 — 31,614 Total current liabilities 3,046 50,490 91,919 (32,995 ) 112,460 LONG-TERM DEBT 370,000 115,972 236,381 — 722,353 PENSION AND OTHER POSTRETIREMENT BENEFITS — 34,081 (685 ) — 33,396 OTHER NON-CURRENT LIABILITIES — 6,615 14,225 — 20,840 INTERCOMPANY PAYABLE — 636,190 (254,315 ) (381,875 ) — TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,404,113 1,516,408 2,128,525 (3,644,933 ) 1,404,113 Noncontrolling interest — — 73,159 — 73,159 TOTAL SHAREHOLDERS’ EQUITY 1,404,113 1,516,408 2,201,684 (3,644,933 ) 1,477,272 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,777,159 $2,359,756 $2,289,209 ($4,059,803 ) $2,366,321 CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2014 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $102,218 $8,105 $51,235 — $161,558 Accounts receivable, less allowance for doubtful accounts — 1,409 22,609 — 24,018 Inventory — — 8,383 — 8,383 Prepaid and other current assets — 2,009 17,736 — 19,745 Total current assets 102,218 11,523 99,963 — 213,704 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — 2,088,501 — 2,088,501 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS — — 77,433 — 77,433 NET PROPERTY, PLANT AND EQUIPMENT — 433 6,273 — 6,706 INVESTMENT IN SUBSIDIARIES 1,463,303 2,053,911 — (3,517,214 ) — INTERCOMPANY NOTES RECEIVABLE 248,233 21,500 — (269,733 ) — OTHER ASSETS 2,763 18,369 45,639 — 66,771 TOTAL ASSETS $1,816,517 $2,105,736 $2,317,809 ($3,786,947 ) $2,453,115 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable — $2,810 $17,401 — $20,211 Current maturities of long-term debt — 129,706 — — 129,706 Accrued taxes — 11 11,394 — 11,405 Accrued payroll and benefits — 3,253 3,137 — 6,390 Accrued interest 3,047 2,517 31,281 (28,412 ) 8,433 Other current liabilities — 1,073 24,784 — 25,857 Total current liabilities 3,047 139,370 87,997 (28,412 ) 202,002 LONG-TERM DEBT 325,000 31,000 265,849 — 621,849 PENSION AND OTHER POSTRETIREMENT BENEFITS — 34,161 (684 ) — 33,477 OTHER NON-CURRENT LIABILITIES — 6,436 14,200 — 20,636 INTERCOMPANY PAYABLE — 431,466 (153,754 ) (277,712 ) — TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,488,470 1,463,303 2,017,520 (3,480,823 ) 1,488,470 Noncontrolling interest — — 86,681 — 86,681 TOTAL SHAREHOLDERS’ EQUITY 1,488,470 1,463,303 2,104,201 (3,480,823 ) 1,575,151 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,816,517 $2,105,736 $2,317,809 ($3,786,947 ) $2,453,115 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2015 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES ($25,092 ) ($13,561 ) $110,401 $14,135 $85,883 INVESTING ACTIVITIES Capital expenditures — (134 ) (25,996 ) — (26,130 ) Real estate development costs — — (578 ) — (578 ) Purchase of timberlands — — (88,414 ) — (88,414 ) Change in restricted cash — — 4,160 — 4,160 Investment in Subsidiaries — 8,753 — (8,753 ) — Other — — 3,689 — 3,689 CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES — 8,619 (107,139 ) (8,753 ) (107,273 ) FINANCING ACTIVITIES Issuance of debt — 57,000 2,100 — 59,100 Repayment of debt — (28,000 ) (3,472 ) — (31,472 ) Dividends paid (63,421 ) — — — (63,421 ) Proceeds from the issuance of common shares 718 — — — 718 Repurchase of common shares (9,057 ) — — — (9,057 ) Intercompany distributions — 13,778 (8,396 ) (5,382 ) — CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES (71,760 ) 42,778 (9,768 ) (5,382 ) (44,132 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH — — (4,404 ) — (4,404 ) CASH AND CASH EQUIVALENTS Change in cash and cash equivalents (96,852 ) 37,836 (10,910 ) — (69,926 ) Balance, beginning of year 102,218 8,105 51,235 — 161,558 Balance, end of period $5,366 $45,941 $40,325 — $91,632 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2014 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated CASH PROVIDED BY OPERATING ACTIVITIES $138,535 $150,518 $87,098 ($147,007 ) $229,144 INVESTING ACTIVITIES Capital expenditures — (201 ) (33,396 ) — (33,597 ) Capital expenditures from discontinued operations — — (47,050 ) — (47,050 ) Real estate development costs — — (2,595 ) — (2,595 ) Purchase of timberlands — — (74,817 ) — (74,817 ) Change in restricted cash — — 63,128 — 63,128 Investment in Subsidiaries — (62,800 ) — 62,800 — Other — — (478 ) — (478 ) CASH USED FOR INVESTING ACTIVITIES — (63,001 ) (95,208 ) 62,800 (95,409 ) FINANCING ACTIVITIES Issuance of debt — 1,238,389 — — 1,238,389 Repayment of debt — (1,107,062 ) — — (1,107,062 ) Dividends paid (124,628 ) — — — (124,628 ) Proceeds from the issuance of common shares 3,347 — — — 3,347 Repurchase of common shares (1,834 ) — — — (1,834 ) Debt issuance costs — (12,380 ) — — (12,380 ) Net cash disbursed upon spin-off of Performance Fibers business (106,420 ) — — — (106,420 ) Intercompany distributions — (149,525 ) 65,318 84,207 — Other — — (680 ) — (680 ) CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES (229,535 ) (30,578 ) 64,638 84,207 (111,268 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH — — (50 ) — (50 ) CASH AND CASH EQUIVALENTS Change in cash and cash equivalents (91,000 ) 56,939 56,478 — 22,417 Balance, beginning of year 130,181 11,023 58,440 — 199,644 Balance, end of period $39,181 $67,962 $114,918 — $222,061 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reclassifications | Reclassifications Certain 2014 amounts have been reclassified to conform to the current presentation, including changes in balance sheet presentation. During the first quarter of 2015, the Company reclassified seeds and seedlings from Inventory and Other Assets to Timber and Timberlands, Net to better reflect the intended use of the assets. Rayonier also reclassified long-term higher and better use (“HBU”) timberlands and real estate development costs from Other Assets to a separate balance sheet caption. These adjustments are reflected in the June 30, 2015 and December 31, 2014 Consolidated Balance Sheets. Corresponding changes have also been made to the Consolidated Statements of Cash Flows for both periods presented. Certain 2014 amounts have also been adjusted for reclassification of discontinued operations. Rayonier completed the spin-off of its Performance Fibers business on June 27, 2014. Accordingly, the operating results of this business segment are reported as discontinued operations in the Company’s Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income for the prior-year period. Certain administrative and general costs historically allocated to the Performance Fibers business that remained with Rayonier are reported in continuing operations. The Consolidated Statement of Cash Flow for the six months ended June 30, 2014 has not been restated to exclude Performance Fibers cash flows. See Note 2 — Discontinued Operations for additional information regarding the spin-off of the Performance Fibers business. |
New Accounting Standards | New Accounting Standards In May 2014, the Financial Accounting Standards Board (“FASB”) and International Accounting Standards Board (“IASB”) jointly issued Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers , a comprehensive new revenue recognition standard that will supersede current revenue recognition guidance. The core principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to receive in exchange for those goods or services. The guidance provides a unified model to determine when and how revenue is recognized and will require enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. In July 2015, the FASB approved a one-year deferral of the effective date of the new standard, with an option for organizations to adopt early based on the original effective date. This standard will be effective for Rayonier beginning January 1, 2018 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03, Interest — Imputation of Interest (Subtopic 835-30) — Simplifying the Presentation of Debt Issuance Costs. ASU No. 2015-03 requires that debt issuance costs be presented in the Balance Sheet as a direct deduction from the carrying amount of the debt liability. ASU No. 2015-03 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period, and is required to be applied on a retrospective basis. Early adoption is permitted. Rayonier intends to adopt ASU No. 2015-03 in the Company’s first quarter 2016 Form 10-Q filing and does not expect adoption to have a material impact on the consolidated financial statements. In May 2015, the FASB issued ASU No. 2015–07, “ Fair Value Measurement (Topic 820) — Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent). ASU No. 2015–07 requires that investments for which the fair value is measured at NAV using the practical expedient (investments in funds measured at NAV) under “Fair Value Measurements and Disclosures” (Topic 820) be excluded from the fair value hierarchy. ASU No. 2015–07 is effective for annual reporting periods beginning after December 15, 2015, including interim periods within that reporting period. ASU No. 2015–07 is required to be applied retrospectively to all periods presented beginning in the period of adoption. Early adoption is permitted. Rayonier intends to adopt ASU No. 2015–07 in the Company’s first quarter 2016 Form 10-Q filing and does not expect adoption to have a material impact on the consolidated financial statements. |
Subsequent Events | Subsequent Events Quarterly Dividend On July 20, 2015, the Company announced a third quarter dividend of 25 cents per share payable September 30, 2015, to shareholders of record on September 16, 2015. Debt Refinancing and Recapitalization of New Zealand JV See Note 15 — Debt for discussion of debt refinancing and planned recapitalization of the Company’s New Zealand joint venture. |
Interest Expense Allocated to Discontinued Operations | In accordance with Accounting Standards Codification (“ASC”) 205-20-S99-3, Allocation of Interest to Discontinued Operations , the Company elected to allocate interest expense to discontinued operations where the debt is not directly attributed to the Performance Fibers business. Interest expense has been allocated based on a ratio of net assets to be discontinued to the sum of consolidated net assets plus consolidated debt (other than debt directly attributable to the Timber and Real Estate operations). |
Segment Reporting | Sales between operating segments are made based on estimated fair market value. 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 (Loss) Income and Comprehensive (Loss) Income is equal to segment income. Certain income (loss) items in the Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income are not allocated to segments. These items, which include gains (losses) from certain asset dispositions, interest income (expense), miscellaneous income (expense) and income tax (expense) benefit, are not considered by management to be part of segment operations. |
Derivatives | Accounting for derivative financial instruments is governed by Accounting Standards Codification 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 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 New Zealand is partially or completely liquidated. The ineffective portion of any hedge as well as 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. |
Derivatives, Offsetting Fair Value Amounts | 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 | 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. |
Consolidation 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. |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures | The following table summarizes the operating results of the Company's discontinued operations related to the Performance Fibers spin-off for the three and six months ended June 30, 2014 , as presented in "Income from discontinued operations, net" in the Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income: Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 Sales $212,680 $456,180 Cost of sales and other (174,961 ) (368,868 ) Transaction expenses (19,669 ) (22,989 ) Income from discontinued operations before income taxes 18,050 64,323 Income tax expense (5,966 ) (21,231 ) Income from discontinued operations, net $12,084 $43,092 |
Schedule of Interest Expense Allocated to Discontinued Operations | The following table summarizes the interest expense allocated to discontinued operations for the three and six months ended June 30, 2014 : Three Months Ended June 30, 2014 Six Months Ended June 30, 2014 Interest expense allocated to the Performance Fibers business ($1,910 ) ($4,205 ) |
Schedule of Disposal Groups, Depreciation, Amortization, and Capital Expenditures | The following table summarizes the depreciation, amortization and capital expenditures of the Company's discontinued operations related to the Performance Fibers business: Three Months Ended Six Months Ended June 30, 2014 Depreciation and amortization $17,336 $37,985 Capital expenditures 29,880 47,050 |
Schedule of Elimination of Intercompany Hardwood Purchases | Prior to the spin-off, hardwood purchases were intercompany transactions eliminated in consolidation as follows: Three Months Ended Six Months Ended June 30, 2014 Hardwood purchases $1,190 $3,935 |
(LOSS) EARNINGS PER COMMON SH27
(LOSS) EARNINGS PER COMMON SHARE (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | (a) Rayonier will not issue additional shares upon future exchange or maturity of the Senior Exchangeable Notes due 2015 (the “2015 Notes”) due to offsetting hedges. ASC 260, Earnings Per Share requires the assumed conversion of the 2015 Notes to be included in dilutive shares if the average stock price for the period exceeds the strike price, while the assumed conversion of the hedges is excluded since they are anti-dilutive. The full dilutive effect of the 2015 Notes was included for all periods presented, except for second quarter 2015 due to the loss incurred in that period. Rayonier will distribute additional shares upon maturity of the warrants sold in conjunction with the 2015 Notes if the stock price exceeds $28.11 per share. The exchange price on the warrants is lower than periods prior to second quarter 2014 as it has been adjusted to reflect the spin-off of the Performance Fibers business. The warrants were not dilutive for the three and six months ended June 30, 2015 as the average stock price for these periods did not exceed the strike price. For further information, see Note 13 — Debt in the 2014 Form 10-K and Note 15 — Debt of this Form 10-Q. The following table provides details of the calculations of basic and diluted (loss) earnings per common share: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (Loss) income from continuing operations ($2,860 ) $4,024 $15,320 $14,359 Less: Net (loss) from continuing operations attributable to noncontrolling interest (1,324 ) (245 ) (891 ) (328 ) (Loss) income from continuing operations attributable to Rayonier Inc. ($1,536 ) $4,269 $16,211 $14,687 Income from discontinued operations, net, attributable to Rayonier Inc. — $12,084 — 43,092 Net (loss) income attributable to Rayonier Inc. ($1,536 ) $16,353 $16,211 $57,779 Shares used for determining basic (loss) earnings per common share 126,635,710 126,434,376 126,625,081 126,390,891 Dilutive effect of: Stock options — 293,213 146,754 296,768 Performance and restricted shares — 201,956 30,515 194,995 Assumed conversion of Senior Exchangeable Notes (a) — 2,631,514 702,301 2,579,402 Assumed conversion of warrants (a) — 2,738,606 — 2,656,633 Shares used for determining diluted (loss) earnings per common share 126,635,710 132,299,665 127,504,651 132,118,689 Basic (loss) earnings per common share attributable to Rayonier Inc.: Continuing operations ($0.01 ) $0.03 $0.13 $0.12 Discontinued operations — 0.10 — 0.34 Net (loss) income ($0.01 ) $0.13 $0.13 $0.46 Diluted (loss) earnings per common share attributable to Rayonier Inc.: Continuing operations ($0.01 ) $0.03 $0.13 $0.11 Discontinued operations — 0.09 — 0.33 Net (loss) income ($0.01 ) $0.12 $0.13 $0.44 Three Months Ended Six Months Ended 2015 2014 2015 2014 Anti-dilutive shares excluded from the computations of diluted (loss) earnings per share: Stock options, performance and restricted shares (b) 158,191 507,044 937,236 499,193 Assumed conversion of exchangeable note hedges (a) — 2,631,514 702,301 2,579,402 Assumed conversion of Senior Exchangeable Notes due 2015 (b) 501,189 — — — Total 659,380 3,138,558 1,639,537 3,078,595 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Three Months Ended Six Months Ended 2015 2014 2015 2014 Anti-dilutive shares excluded from the computations of diluted (loss) earnings per share: Stock options, performance and restricted shares (b) 158,191 507,044 937,236 499,193 Assumed conversion of exchangeable note hedges (a) — 2,631,514 702,301 2,579,402 Assumed conversion of Senior Exchangeable Notes due 2015 (b) 501,189 — — — Total 659,380 3,138,558 1,639,537 3,078,595 (a) Rayonier will not issue additional shares upon future exchange or maturity of the Senior Exchangeable Notes due 2015 (the “2015 Notes”) due to offsetting hedges. ASC 260, Earnings Per Share requires the assumed conversion of the 2015 Notes to be included in dilutive shares if the average stock price for the period exceeds the strike price, while the assumed conversion of the hedges is excluded since they are anti-dilutive. The full dilutive effect of the 2015 Notes was included for all periods presented, except for second quarter 2015 due to the loss incurred in that period. Rayonier will distribute additional shares upon maturity of the warrants sold in conjunction with the 2015 Notes if the stock price exceeds $28.11 per share. The exchange price on the warrants is lower than periods prior to second quarter 2014 as it has been adjusted to reflect the spin-off of the Performance Fibers business. The warrants were not dilutive for the three and six months ended June 30, 2015 as the average stock price for these periods did not exceed the strike price. For further information, see Note 13 — Debt in the 2014 Form 10-K and Note 15 — Debt of this Form 10-Q. (b) For the three months ended June 30, 2015, the assumed conversion of the 2015 Notes, as well as incremental shares related to stock options, performance shares, and restricted shares, were not included in the computation of diluted loss per share as their inclusion would have an anti-dilutive effect. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The table below reconciles the U.S. statutory rate to the Company’s effective tax rate for each period presented: Three Months Ended June 30, 2015 2014 Income tax (benefit) expense at federal statutory rate ($1,105 ) 35.0 % $6,153 35.0 % REIT income and taxable losses 1,077 (34.1 ) (5,625 ) (32.0 ) Foreign operations 101 (3.2 ) (728 ) (4.1 ) Net operating loss valuation allowance (216 ) 6.9 — — Non-deductible real estate losses — — 590 3.4 Other (153 ) 4.8 119 0.6 Income tax (benefit) expense before discrete items ($296 ) 9.4 % $509 2.9 % CBPC valuation allowance — — 15,574 88.7 Spin-off related costs — — 797 4.5 Deferred tax inventory valuations — — (3,293 ) (18.7 ) Other — — (31 ) (0.3 ) Income tax (benefit) expense as reported for continuing operations ($296 ) 9.4 % $13,556 77.1 % Six Months Ended June 30, 2015 2014 Income tax expense at federal statutory rate $5,093 35.0 % $7,112 35.0 % REIT income and taxable losses (6,894 ) (47.4 ) (13,823 ) (69.3 ) Foreign operations (645 ) (4.4 ) (841 ) (0.3 ) Net operating loss valuation allowance 1,386 9.5 — — Non-deductible real estate losses — — 681 1.2 Other 292 2.0 138 0.3 Income tax benefit before discrete items ($768 ) (5.3 )% ($6,733 ) (33.1 )% CBPC valuation allowance — — 15,574 76.6 Spin-off related costs — — 797 3.9 Deferred tax inventory valuations — — (3,293 ) (16.2 ) Other — — (384 ) (1.9 ) Income tax (benefit) expense as reported for continuing operations ($768 ) (5.3 )% $5,961 29.3 % |
HIGHER AND BETTER USE TIMBERL29
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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 costs from December 31, 2014 to June 30, 2015 is shown below: Higher and Better Use Timberlands and Real Estate Development Costs Land and Timber Development Costs Total Non-current portion at December 31, 2014 $65,959 $11,474 $77,433 Plus: Current portion (a) 4,875 57 4,932 Total Balance at December 31, 2014 70,834 11,531 82,365 Non-cash cost of land sold and real estate development costs recovered upon sale (4,205 ) (57 ) (4,262 ) Timber depletion from harvesting activities and basis of timber sold in real estate sales (1,340 ) — (1,340 ) Capitalized real estate development costs (b) — 926 926 Capital expenditures (silviculture) 100 — 100 Acquisitions — — — Transfers — — — Other — (28 ) (28 ) Total Balance at June 30, 2015 65,389 12,372 77,761 Less: Current portion (a) (7,488 ) (547 ) (8,035 ) Non-current portion at June 30, 2015 $57,901 $11,825 $69,726 (a) The current portion of Higher and Better Use Timberlands and Real Estate Development Costs is recorded in Inventory. See Note 14 — Inventory for additional information. (b) Capitalized real estate development costs for the six months ended June 30, 2015 of $926,000 consisted of $578,000 in cash outflows and a $348,000 change in accrued spending. |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | An analysis of shareholders’ equity for the six months ended June 30, 2015 and the year ended December 31, 2014 is shown below (share amounts not in thousands): Rayonier Inc. Shareholders’ Equity Common Shares Retained Earnings Accumulated Other Comprehensive Income/(Loss) Non-controlling Interest Total Shareholders’ Equity Shares (a) Amount Balance, December 31, 2013 126,257,870 $692,100 $1,015,209 ($46,139 ) $94,073 $1,755,243 Net income (loss) — — 99,337 — (1,491 ) 97,846 Dividends ($2.03 per share) — — (256,861 ) — — (256,861 ) Contribution to Rayonier Advanced Materials — (301 ) (61,318 ) 80,749 — 19,130 Adjustments to Rayonier Advanced Materials (b) — — (5,670 ) (2,556 ) — (8,226 ) Issuance of shares under incentive stock plans 561,701 5,579 — — — 5,579 Stock-based compensation — 7,869 — — — 7,869 Tax deficiency on stock-based compensation — (791 ) — — — (791 ) Repurchase of common shares (46,474 ) (1,858 ) — — — (1,858 ) Net loss from pension and postretirement plans — — — (24,147 ) — (24,147 ) Noncontrolling interest redemption of shares — — — — (931 ) (931 ) Foreign currency translation adjustment — — — (11,526 ) (4,321 ) (15,847 ) Joint venture cash flow hedges — — — (1,206 ) (649 ) (1,855 ) Balance, December 31, 2014 126,773,097 $702,598 $790,697 ($4,825 ) $86,681 $1,575,151 Net income (loss) — — 16,211 — (891 ) 15,320 Dividends ($0.50 per share) — — (63,380 ) — — (63,380 ) Issuance of shares under incentive stock plans 134,448 718 — — — 718 Stock-based compensation — 2,588 — — — 2,588 Tax deficiency on stock-based compensation — (272 ) — — — (272 ) Repurchase of common shares (c) (d) (415,484 ) (10,797 ) — — — (10,797 ) Net gain from pension and postretirement plans — — — 1,524 — 1,524 Foreign currency translation adjustment — — — (28,438 ) (11,279 ) (39,717 ) Joint venture cash flow hedges — — — (2,511 ) (1,352 ) (3,863 ) Balance, June 30, 2015 126,492,061 $694,835 $743,528 ($34,250 ) $73,159 $1,477,272 (a) The Company’s common shares are registered in North Carolina and have a $0.00 par value. (b) Primarily relates to adjustments made to the Rayonier Advanced Materials contribution as income taxes and pension and postretirement plan assets and obligations were finalized. (c) During the second quarter the Company repurchased approximately $10.7 million of common stock at an average price of $25.94 per share. As of June 30, 2015 , the Company had 126.5 million shares of common stock outstanding and $89.3 million remaining in its share repurchase authorization announced in June 2015. (d) Includes shares of the Company’s common stock purchased from employees in non-open market transactions. The shares of stock were sold by current and former employees of the Company in exchange for cash that was used to pay withholding taxes associated with the vesting of restricted stock awards under the Company’s stock incentive plan. The price per share surrendered is based on the closing price of the company’s stock on the respective vesting dates of the awards. |
SEGMENT AND GEOGRAPHICAL INFO31
SEGMENT AND GEOGRAPHICAL INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Segment information for the three and six months ended June 30, 2015 and 2014 were as follows: Three Months Ended Six Months Ended SALES 2015 2014 2015 2014 Southern Timber $32,681 $31,525 $68,212 $65,402 Pacific Northwest Timber 17,102 25,053 36,256 58,090 New Zealand Timber 39,223 44,543 80,417 82,307 Real Estate 6,945 34,017 30,736 39,547 Trading 19,850 29,224 40,485 64,910 Intersegment Eliminations — (1,217 ) — (3,924 ) Total $115,801 $163,145 $256,106 $306,332 Three Months Ended Six Months Ended OPERATING INCOME 2015 2014 2015 2014 Southern Timber $11,777 $8,886 $24,190 $19,379 Pacific Northwest Timber 1,687 8,785 4,275 21,427 New Zealand Timber (945 ) 2,249 4,749 4,660 Real Estate 1,421 27,764 14,003 28,489 Trading (84 ) (132 ) 186 (544 ) Corporate and other (7,333 ) (9,975 ) (13,133 ) (21,408 ) Total Operating Income $6,523 $37,577 34,270 52,003 Unallocated interest expense and other (9,679 ) ($19,997 ) (19,718 ) (31,683 ) Total (loss) income from continuing operations before income taxes ($3,156 ) $17,580 $14,552 $20,320 Three Months Ended Six Months Ended DEPRECIATION, DEPLETION AND AMORTIZATION 2015 2014 2015 2014 Southern Timber $12,650 $10,709 $26,951 $22,705 Pacific Northwest Timber 2,941 5,194 6,731 11,492 New Zealand Timber 7,183 7,669 15,186 14,163 Real Estate 1,006 6,422 4,818 7,333 Trading — — — — Corporate and other 70 341 140 623 Total $23,850 $30,335 $53,826 $56,316 Three Months Ended Six Months Ended NON-CASH COST OF LAND SOLD AND REAL ESTATE COSTS RECOVERED UPON SALE 2015 2014 2015 2014 Southern Timber — — — — Pacific Northwest Timber — — — — New Zealand Timber — (2 ) — 2,096 Real Estate 1,191 2,324 4,938 3,302 Trading — — — — Corporate and other — — — — Total $1,191 $2,322 $4,938 $5,398 |
DERIVATIVE FINANCIAL INSTRUME32
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following table demonstrates the impact of the Company’s derivatives on the Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income for the six months ended June 30, 2015 and 2014 . Three Months Ended Income Statement Location 2015 2014 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other comprehensive (loss) income ($1,621 ) ($818 ) Foreign currency option contracts Other comprehensive (loss) income (2,658 ) (504 ) Derivative designated as a net investment hedge: Foreign currency exchange contract Other comprehensive (loss) income $2,173 — Derivatives not designated as hedging instruments: Foreign currency exchange contracts Other operating (income) expense — — Foreign currency option contracts Other operating (income) expense 546 — Interest rate swaps Interest income and miscellaneous expense, net (1,417 ) (729 ) Fuel hedge contracts Cost of sales (benefit) — (92 ) Six Months Ended Income Statement Location 2015 2014 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other comprehensive (loss) income ($2,308 ) $669 Foreign currency option contracts Other comprehensive (loss) income (3,339 ) 221 Derivative designated as a net investment hedge: Foreign currency exchange contract Other comprehensive (loss) income 3,107 — Derivatives not designated as hedging instruments: Foreign currency exchange contracts Other operating (income) expense — 25 Foreign currency option contracts Other operating (income) expense 546 7 Interest rate swaps Interest and miscellaneous (expense) income, net (3,273 ) (1,862 ) Fuel hedge contracts Cost of sales (benefit) — 225 |
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, 2015 December 31, 2014 Derivatives designated as cash flow hedges: Foreign currency exchange contracts $28,200 $28,540 Foreign currency option contracts 135,700 79,400 Derivative designated as a net investment hedge: Foreign currency exchange contract 23,828 27,419 Derivatives not designated as hedging instruments: Interest rate swaps 129,352 161,968 |
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, 2015 December 31, 2014 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Prepaid and other current assets — $132 Other assets — 59 Other current liabilities (2,197 ) (272 ) Other non-current liabilities (639 ) — Foreign currency option contracts Prepaid and other current assets — 299 Other assets — 198 Other current liabilities (3,614 ) (1,439 ) Other non-current liabilities (653 ) (196 ) Derivative designated as a net investment hedge: Foreign currency exchange contract Prepaid and other current assets 2,884 — Other current liabilities — (223 ) Derivatives not designated as hedging instruments: Interest rate swaps Other non-current liabilities (8,271 ) (7,247 ) Total derivative contracts: Prepaid and other current assets $2,884 $431 Other assets — 257 Total derivative assets 2,884 688 Other current liabilities (5,811 ) (1,934 ) Other non-current liabilities (9,563 ) (7,443 ) Total derivative liabilities ($15,374 ) ($9,377 ) (a) See Note 10 — Fair Value Measurements for further information on the fair value of the Company’s derivatives including their classification within the fair value hierarchy. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 and December 31, 2014 , using market information and what the Company believes to be appropriate valuation methodologies under generally accepted accounting principles: June 30, 2015 December 31, 2014 Asset (liability) Carrying Amount Fair Value Carrying Amount Fair Value Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $91,632 $91,632 — $161,558 $161,558 — Restricted cash (a) 2,528 2,528 — 6,688 6,688 — Current maturities of long-term debt (30,000 ) — (32,812 ) (129,706 ) — (156,762 ) Long-term debt (722,353 ) — (725,543 ) (621,849 ) — (628,476 ) Interest rate swaps (b) (8,271 ) — (8,271 ) (7,247 ) — (7,247 ) Foreign currency exchange contracts (b) 48 — 48 (304 ) — (304 ) Foreign currency option contracts (b) (4,267 ) — (4,267 ) (1,138 ) — (1,138 ) (a) Restricted cash is recorded in “Other Assets” and represents the proceeds from LKE sales deposited with a third-party intermediary. (b) See Note 9 — Derivative Financial Instruments and Hedging Activities for information regarding the Balance Sheet classification of the Company’s derivative financial instruments. |
GUARANTEES (Tables)
GUARANTEES (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Guarantees [Abstract] | |
Schedule of Guarantor Obligations | As of June 30, 2015 , the following financial guarantees were outstanding: Financial Commitments Maximum Potential Payment Carrying Amount of Associated Liability Standby letters of credit (a) $16,685 $15,000 Guarantees (b) 2,254 43 Surety bonds (c) 776 — Total financial commitments $19,715 $15,043 (a) Approximately $15 million of the standby letters of credit serve as credit support for industrial revenue bonds. The remaining letters of credit support various insurance related agreements, primarily workers’ compensation. These letters of credit will expire at various dates during 2015 and will be renewed as required. (b) In conjunction with a timberland sale and note monetization in 2004, the Company issued a make-whole agreement pursuant to which it guaranteed $2.3 million of obligations of a special-purpose entity that was established to complete the monetization. At June 30, 2015 , the Company has a de minimis liability to reflect the fair market value of its obligation to perform under the make-whole agreement. (c) Rayonier issues surety bonds primarily to secure timber harvesting obligations in the State of Washington and to provide collateral for the Company’s workers’ compensation self-insurance program in that state. These surety bonds expire at various dates during 2015 and 2016 and are expected to be renewed as required. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Net Benefit Costs | The net pension and postretirement benefit costs that have been recorded are shown in the following table: Pension Postretirement Three Months Ended Three Months Ended 2015 2014 2015 2014 Components of Net Periodic Benefit Cost Service cost $371 $1,544 $3 $147 Interest cost 830 4,452 13 199 Expected return on plan assets (1,007 ) (6,330 ) — — Amortization of prior service cost 3 277 — 4 Amortization of losses 916 2,603 3 116 Amortization of negative plan amendment — — — (133 ) Net periodic benefit cost (a) $1,113 $2,546 $19 $333 Pension Postretirement Six Months Ended Six Months Ended 2015 2014 2015 2014 Components of Net Periodic Benefit Cost Service cost $742 $3,168 $6 $326 Interest cost 1,659 9,135 26 405 Expected return on plan assets (2,014 ) (12,988 ) — — Amortization of prior service cost 6 569 — 8 Amortization of losses 1,849 5,340 6 245 Amortization of negative plan amendment — — — (267 ) Net periodic benefit cost (a) $2,242 $5,224 $38 $717 (a) Net periodic benefit cost for the three and six months ended June 30, 2014 includes $2.0 million and $4.0 million , respectively, recorded in “Income from discontinued operations, net” on the Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income. |
INVENTORY (Tables)
INVENTORY (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | As of June 30, 2015 and December 31, 2014 , Rayonier’s inventory was solely comprised of finished goods, as follows: June 30, 2015 December 31, 2014 Finished goods inventory Real estate inventory (a) $8,035 $4,932 Log inventory 5,327 3,451 Total inventory $13,362 $8,383 (a) Represents HBU real estate (including capitalized development costs) expected to be sold within 12 months. |
ACCUMULATED OTHER COMPREHENSI37
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 and the year ended December 31, 2014. All amounts are presented net of tax and exclude portions attributable to noncontrolling interest. Foreign currency translation gains/ (losses) Net investment hedge of New Zealand JV New Zealand JV cash flow hedges Unrecognized components of employee benefit plans Total Balance as of December 31, 2013 $36,914 — ($342 ) ($82,711 ) ($46,139 ) Other comprehensive income/(loss) before reclassifications (11,381 ) (145 ) 510 47,938 (a) 36,922 Amounts reclassified from accumulated other comprehensive loss — — (1,716 ) 6,108 (b) 4,392 Net other comprehensive income/(loss) (11,381 ) (145 ) (1,206 ) 54,046 41,314 Balance as of December 31, 2014 $25,533 ($145 ) ($1,548 ) ($28,665 ) ($4,825 ) Other comprehensive income/(loss) before reclassifications (30,456 ) 2,019 (3,700 ) — (32,137 ) Amounts reclassified from accumulated other comprehensive loss — — 1,188 1,524 (c) 2,712 Net other comprehensive income/(loss) (30,456 ) 2,019 (2,512 ) 1,524 (29,425 ) Balance as of June 30, 2015 ($4,923 ) $1,874 ($4,060 ) ($27,141 ) ($34,250 ) (a) Reflects $ 78 million , net of taxes, of comprehensive income due to the transfer of losses to Rayonier Advanced Materials Pension Plans. This comprehensive income was offset by $ 30 million , net of taxes, of losses as a result of revaluations required due to the spin-off at December 31, 2014. See Note 22 — Employee Benefit Plans in the 2014 Form 10-K for additional information. (b) This accumulated other comprehensive income component is comprised of $ 5 million from the computation of net periodic pension cost and the $1 million write-off of a deferred tax asset related to the revaluation and transfer of liabilities as a result of the spin-off. (c) This component of other comprehensive income is included in the computation of net periodic pension cost. See Note 13 — 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, 2015 and June 30, 2014: Details about accumulated other comprehensive income components Amount reclassified from accumulated other comprehensive income Affected line item in the income statement June 30, 2015 June 30, 2014 Realized loss (gain) on foreign currency exchange contracts $1,504 ($2,542 ) Other operating income, net Realized loss (gain) on foreign currency option contracts 1,035 (937 ) Other operating income, net Noncontrolling interest (889 ) 1,218 Comprehensive (loss) income attributable to noncontrolling interest Income tax (benefit) expense on loss from foreign currency contracts (462 ) 254 Income tax benefit Net gain on cash flow hedges reclassified from accumulated other comprehensive income 1,188 (2,007 ) Income tax expense on pension plan contributed to Rayonier Advanced Materials — 843 Income tax expense Net loss (gain) from accumulated other comprehensive income $1,188 ($1,164 ) |
OTHER OPERATING INCOME, NET (Ta
OTHER OPERATING INCOME, NET (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Other Income and Expenses [Abstract] | |
Interest and Other Income | Other operating income, net comprised the following: Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Lease income, primarily from hunting leases $5,890 $3,966 $9,999 $7,003 Other non-timber income 688 440 2,052 993 Foreign currency income (loss) 108 1,232 215 (255 ) Gain (loss) on sale or disposal of property, plant & equipment 3 (20 ) 3 (20 ) (Loss) gain on foreign currency exchange contracts (645 ) — (994 ) (32 ) Bankruptcy claim settlement — 5,779 — 5,779 Gain (loss) on sale of carbon credits (a) 352 (307 ) 352 (307 ) Miscellaneous income (expense), net 742 299 1,086 (1,397 ) Total $7,138 $11,389 $12,713 $11,764 (a) Loss in 2014 reflects surrender of carbon credit units. |
CONSOLIDATING FINANCIAL STATE39
CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Senior Exchangeable Notes due August 2015 at a fixed interest rate of 4.50% [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Schedule of Condensed Consolidating Statements of (Loss) Income and Comprehensive (Loss) Income | CONDENSED CONSOLIDATING STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME For the Three Months Ended June 30, 2015 Rayonier Inc. (Parent Guarantor) ROC (Subsidiary Guarantor) Rayonier TRS Holdings Inc. (Issuer) Non- guarantors Consolidating Adjustments Total Consolidated SALES — — — $115,801 — $115,801 Costs and Expenses Cost of sales — — — 103,689 — 103,689 Selling and general expenses — 6,330 — 6,397 — 12,727 Other operating expense (income), net — (461 ) — (6,677 ) — (7,138 ) — 5,869 — 103,409 — 109,278 OPERATING (LOSS) INCOME — (5,869 ) — 12,392 — 6,523 Interest expense (3,169 ) (131 ) (2,409 ) (2,774 ) — (8,483 ) Interest and miscellaneous income (expense), net 1,871 817 (137 ) (3,747 ) — (1,196 ) Equity in (loss) income from subsidiaries (238 ) 4,966 2,796 — (7,524 ) — (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (1,536 ) (217 ) 250 5,871 (7,524 ) (3,156 ) Income tax (expense) benefit — (21 ) 948 (631 ) — 296 NET (LOSS) INCOME (1,536 ) (238 ) 1,198 5,240 (7,524 ) (2,860 ) Less: Net loss attributable to noncontrolling interest — — — (1,324 ) — (1,324 ) NET (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. (1,536 ) (238 ) 1,198 6,564 (7,524 ) (1,536 ) OTHER COMPREHENSIVE LOSS Foreign currency translation adjustment (18,008 ) (18,008 ) (74 ) (25,395 ) 36,090 (25,395 ) New Zealand joint venture cash flow hedges (1,896 ) (1,896 ) (1,896 ) (2,917 ) 5,688 (2,917 ) Amortization of pension and postretirement plans, net of income tax 743 743 (5 ) (5 ) (733 ) 743 Total other comprehensive loss (19,161 ) (19,161 ) (1,975 ) (28,317 ) 41,045 (27,569 ) COMPREHENSIVE LOSS (20,697 ) (19,399 ) (777 ) (23,077 ) 33,521 (30,429 ) Less: Comprehensive loss attributable to noncontrolling interest — — — (9,730 ) (1 ) (9,731 ) COMPREHENSIVE LOSS ATTRIBUTABLE TO RAYONIER INC. ($20,697 ) ($19,399 ) ($777 ) ($13,347 ) $33,522 ($20,698 ) CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended June 30, 2014 Rayonier Inc. (Parent Guarantor ) ROC (Subsidiary Guarantor) Rayonier TRS Holdings Inc. (Issuer) Non- guarantors Consolidating Adjustments Total Consolidated SALES — — — $163,145 — $163,145 Costs and Expenses Cost of sales — — — 123,096 — 123,096 Selling and general expenses — 2,394 — 11,467 — 13,861 Other operating expense (income), net — 1,573 — (12,962 ) — (11,389 ) — 3,967 — 121,601 — 125,568 OPERATING (LOSS) INCOME — (3,967 ) — 41,544 — 37,577 Interest expense (3,196 ) (225 ) (10,982 ) (1,209 ) — (15,612 ) Interest and miscellaneous income (expense), net 2,733 (3,003 ) (1,098 ) (3,017 ) — (4,385 ) Equity in income (loss) from subsidiaries 16,814 23,549 (54,081 ) — 13,718 — INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 16,351 16,354 (66,161 ) 37,318 13,718 17,580 Income tax benefit (expense) — 460 4,409 (18,425 ) — (13,556 ) INCOME (LOSS) FROM CONTINUING OPERATIONS 16,351 16,814 (61,752 ) 18,893 13,718 4,024 DISCONTINUED OPERATIONS, NET Income from discontinued operations, net of income taxes — — — 12,084 — 12,084 NET INCOME (LOSS) 16,351 16,814 (61,752 ) 30,977 13,718 16,108 Less: Net loss attributable to noncontrolling interest — — — (245 ) — (245 ) NET INCOME (LOSS) ATTRIBUTABLE TO RAYONIER INC. 16,351 16,814 (61,752 ) 31,222 13,718 16,353 OTHER COMPREHENSIVE INCOME Foreign currency translation adjustment 2,653 2,653 513 3,517 (5,819 ) 3,517 New Zealand joint venture cash flow hedges (598 ) (598 ) (598 ) (920 ) 1,794 (920 ) Amortization of pension and postretirement plans, net of income tax 58,873 58,873 92,714 92,714 (244,301 ) 58,873 Total other comprehensive income 60,928 60,928 92,629 95,311 (248,326 ) 61,470 COMPREHENSIVE INCOME 77,279 77,742 30,877 126,288 (234,608 ) 77,578 Less: Comprehensive income attributable to noncontrolling interest — — — 297 — 297 COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. $77,279 $77,742 $30,877 $125,991 ($234,608 ) $77,281 CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Six Months Ended June 30, 2015 Rayonier Inc. (Parent Guarantor) ROC (Subsidiary Guarantor) Rayonier TRS Holdings Inc. (Issuer) Non- guarantors Consolidating Adjustments Total Consolidated SALES — — — $256,106 — $256,106 Costs and Expenses Cost of sales — — — 210,923 — 210,923 Selling and general expenses — 11,279 — 12,347 — 23,626 Other operating income, net — (461 ) — (12,252 ) — (12,713 ) — 10,818 — 211,018 — 221,836 OPERATING (LOSS) INCOME — (10,818 ) — 45,088 — 34,270 Interest expense (6,337 ) (223 ) (4,841 ) (5,626 ) — (17,027 ) Interest and miscellaneous income (expense), net 3,807 1,654 (281 ) (7,871 ) — (2,691 ) Equity in income from subsidiaries 18,741 28,149 4,223 — (51,113 ) — INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 16,211 18,762 (899 ) 31,591 (51,113 ) 14,552 Income tax (expense) benefit — (21 ) 1,908 (1,119 ) — 768 NET INCOME 16,211 18,741 1,009 30,472 (51,113 ) 15,320 Less: Net loss attributable to noncontrolling interest — — — (891 ) — (891 ) NET INCOME ATTRIBUTABLE TO RAYONIER INC. 16,211 18,741 1,009 31,363 (51,113 ) 16,211 OTHER COMPREHENSIVE LOSS Foreign currency translation adjustment (28,438 ) (28,438 ) (926 ) (39,718 ) 57,803 (39,717 ) New Zealand joint venture cash flow hedges (2,511 ) (2,511 ) (2,511 ) (3,863 ) 7,533 (3,863 ) Amortization of pension and postretirement plans, net of income tax 1,524 1,524 15 15 (1,554 ) 1,524 Total other comprehensive loss (29,425 ) (29,425 ) (3,422 ) (43,566 ) 63,782 (42,056 ) COMPREHENSIVE LOSS (13,214 ) (10,684 ) (2,413 ) (13,094 ) 12,669 (26,736 ) Less: Comprehensive loss attributable to noncontrolling interest — — — (13,522 ) — (13,522 ) COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. ($13,214 ) ($10,684 ) ($2,413 ) $428 $12,669 ($13,214 ) CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Six Months Ended June 30, 2014 Rayonier Inc. (Parent Guarantor) ROC (Subsidiary Guarantor) Rayonier TRS Holdings Inc. (Issuer) Non-guarantors Consolidating Adjustments Total Consolidated SALES — — — $306,332 — $306,332 Costs and Expenses Cost of sales — — — 238,995 — 238,995 Selling and general expenses — 4,544 — 22,554 — 27,098 Other operating expense (income), net — 3,948 — (15,712 ) — (11,764 ) — 8,492 — 245,837 — 254,329 OPERATING (LOSS) INCOME — (8,492 ) — 60,495 — 52,003 Interest expense (6,389 ) (468 ) (17,672 ) (1,757 ) — (26,286 ) Interest and miscellaneous income (expense), net 5,431 (2,189 ) (2,145 ) (6,494 ) — (5,397 ) Equity in income (loss) from subsidiaries 58,737 70,049 (22,951 ) — (105,835 ) — INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 57,779 58,900 (42,768 ) 52,244 (105,835 ) 20,320 Income tax (expense) benefit — (163 ) 7,233 (13,031 ) — (5,961 ) INCOME (LOSS) FROM CONTINUING OPERATIONS 57,779 58,737 (35,535 ) 39,213 (105,835 ) 14,359 DISCONTINUED OPERATIONS, NET Income from discontinued operations, net of income taxes — — — 43,092 — 43,092 NET INCOME (LOSS) 57,779 58,737 (35,535 ) 82,305 (105,835 ) 57,451 Less: Net loss attributable to noncontrolling interest — — — (328 ) — (328 ) NET INCOME (LOSS) ATTRIBUTABLE TO RAYONIER INC. 57,779 58,737 (35,535 ) 82,633 (105,835 ) 57,779 OTHER COMPREHENSIVE INCOME Foreign currency translation adjustment 15,547 15,547 1,279 21,312 (32,365 ) 21,320 New Zealand joint venture cash flow hedges 514 514 514 791 (1,542 ) 791 Amortization of pension and postretirement plans, net of income tax 60,970 60,970 94,334 94,334 (249,638 ) 60,970 Total other comprehensive income 77,031 77,031 96,127 116,437 (283,545 ) 83,081 COMPREHENSIVE INCOME 134,810 135,768 60,592 198,742 (389,380 ) 140,532 Less: Comprehensive income attributable to noncontrolling interest — — — 5,722 — 5,722 COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. $134,810 $135,768 $60,592 $193,020 ($389,380 ) $134,810 |
Schedule of Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS As of June 30, 2015 Rayonier Inc. (Parent Guarantor) ROC (Subsidiary Guarantor) Rayonier TRS Holdings Inc. (Issuer) Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $5,366 $94 $45,847 $40,325 — $91,632 Accounts receivable, less allowance for doubtful accounts — — 91 19,353 — 19,444 Inventory — — — 13,362 — 13,362 Prepaid and other current assets — 1,855 3,008 16,359 — 21,222 Total current assets 5,366 1,949 48,946 89,399 — 145,660 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — — 2,086,729 — 2,086,729 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS — — — 69,726 — 69,726 NET PROPERTY, PLANT AND EQUIPMENT — 480 — 5,954 — 6,434 INVESTMENT IN SUBSIDIARIES 1,516,408 2,182,721 843,077 — (4,542,206 ) — INTERCOMPANY NOTES RECEIVABLE 252,815 — 21,928 — (274,743 ) — OTHER ASSETS 2,570 16,476 1,325 37,401 — 57,772 TOTAL ASSETS $1,777,159 $2,201,626 $915,276 $2,289,209 ($4,816,949 ) $2,366,321 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable — $3,434 $83 $18,879 — $22,396 Current maturities of long-term debt — — 30,000 — — 30,000 Accrued taxes — 14 — 15,797 — 15,811 Accrued payroll and benefits — 2,476 — 2,120 — 4,596 Accrued interest 3,046 (12 ) 2,505 35,499 (32,995 ) 8,043 Other current liabilities — 2,420 9,570 19,624 — 31,614 Total current liabilities 3,046 8,332 42,158 91,919 (32,995 ) 112,460 LONG-TERM DEBT 370,000 — 115,972 236,381 — 722,353 PENSION AND OTHER POSTRETIREMENT BENEFITS — 34,081 — (685 ) — 33,396 OTHER NON-CURRENT LIABILITIES — 6,615 — 14,225 — 20,840 INTERCOMPANY PAYABLE — 636,190 — (254,315 ) (381,875 ) — TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,404,113 1,516,408 757,146 2,128,525 (4,402,079 ) 1,404,113 Noncontrolling interest — — — 73,159 — 73,159 TOTAL SHAREHOLDERS’ EQUITY 1,404,113 1,516,408 757,146 2,201,684 (4,402,079 ) 1,477,272 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,777,159 $2,201,626 $915,276 $2,289,209 ($4,816,949 ) $2,366,321 CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2014 Rayonier Inc. (Parent Guarantor) ROC (Subsidiary Guarantor) Rayonier TRS Holdings Inc. (Issuer) Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $102,218 $11 $8,094 $51,235 — $161,558 Accounts receivable, less allowance for doubtful accounts — — 1,409 22,609 — 24,018 Inventory — — — 8,383 — 8,383 Prepaid and other current assets — 2,003 6 17,736 — 19,745 Total current assets 102,218 2,014 9,509 99,963 — 213,704 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — — 2,088,501 — 2,088,501 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS — — — 77,433 — 77,433 NET PROPERTY, PLANT AND EQUIPMENT — 433 — 6,273 — 6,706 INVESTMENT IN SUBSIDIARIES 1,463,303 1,923,185 640,678 — (4,027,166 ) — INTERCOMPANY NOTES RECEIVABLE 248,233 — 21,500 — (269,733 ) — OTHER ASSETS 2,763 16,610 1,759 45,639 — 66,771 TOTAL ASSETS $1,816,517 $1,942,242 $673,446 $2,317,809 ($4,296,899 ) $2,453,115 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable — $2,687 $123 $17,401 — $20,211 Current maturities of long-term debt — — 129,706 — — 129,706 Accrued taxes — 11 — 11,394 — 11,405 Accrued payroll and benefits — 3,253 — 3,137 — 6,390 Accrued interest 3,047 (3 ) 2,520 31,281 (28,412 ) 8,433 Other current liabilities — 928 145 24,784 — 25,857 Total current liabilities 3,047 6,876 132,494 87,997 (28,412 ) 202,002 LONG-TERM DEBT 325,000 — 31,000 265,849 — 621,849 PENSION AND OTHER POSTRETIREMENT BENEFITS — 34,161 — (684 ) — 33,477 OTHER NON-CURRENT LIABILITIES — 6,436 — 14,200 — 20,636 INTERCOMPANY PAYABLE — 431,466 — (153,754 ) (277,712 ) — TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,488,470 1,463,303 509,952 2,017,520 (3,990,775 ) 1,488,470 Noncontrolling interest — — — 86,681 — 86,681 TOTAL SHAREHOLDERS’ EQUITY 1,488,470 1,463,303 509,952 2,104,201 (3,990,775 ) 1,575,151 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,816,517 $1,942,242 $673,446 $2,317,809 ($4,296,899 ) $2,453,115 |
Schedule of Condensed Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2015 Rayonier Inc. (Parent Guarantor) ROC (Subsidiary Guarantor) Rayonier TRS Holdings Inc. (Issuer) Non- guarantors Consolidating Adjustments Total Consolidated CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES ($25,092 ) ($13,561 ) — $110,401 $14,135 $85,883 INVESTING ACTIVITIES Capital expenditures — (134 ) — (25,996 ) — (26,130 ) Real estate development costs — — — (578 ) — (578 ) Purchase of timberlands — — — (88,414 ) — (88,414 ) Change in restricted cash — — — 4,160 — 4,160 Investment in Subsidiaries — — 8,753 — (8,753 ) — Other — — — 3,689 — 3,689 CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES — (134 ) 8,753 (107,139 ) (8,753 ) (107,273 ) FINANCING ACTIVITIES Issuance of debt — — 57,000 2,100 — 59,100 Repayment of debt — — (28,000 ) (3,472 ) — (31,472 ) Dividends paid (63,421 ) — — — — (63,421 ) Proceeds from the issuance of common shares 718 — — — — 718 Repurchase of common shares (9,057 ) — — — — (9,057 ) Intercompany distributions — 13,778 — (8,396 ) (5,382 ) — CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES (71,760 ) 13,778 29,000 (9,768 ) (5,382 ) (44,132 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH — — — (4,404 ) — (4,404 ) CASH AND CASH EQUIVALENTS Change in cash and cash equivalents (96,852 ) 83 37,753 (10,910 ) — (69,926 ) Balance, beginning of year 102,218 11 8,094 51,235 — 161,558 Balance, end of period $5,366 $94 $45,847 $40,325 — $91,632 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2014 Rayonier Inc. (Parent Guarantor) ROC (Subsidiary Guarantor) Rayonier TRS Holdings Inc. (Issuer) Non- guarantors Consolidating Adjustments Total Consolidated CASH PROVIDED BY OPERATING ACTIVITIES $138,535 $150,518 — $87,098 ($147,007 ) $229,144 INVESTING ACTIVITIES Capital expenditures — (201 ) — (33,396 ) — (33,597 ) Capital expenditures from discontinued operations — — — (47,050 ) — (47,050 ) Real estate development costs — — — (2,595 ) — (2,595 ) Purchase of timberlands — — — (74,817 ) — (74,817 ) Change in restricted cash — — — 63,128 — 63,128 Investment in Subsidiaries — — (62,800 ) — 62,800 — Other — — — (478 ) — (478 ) CASH USED FOR INVESTING ACTIVITIES — (201 ) (62,800 ) (95,208 ) 62,800 (95,409 ) FINANCING ACTIVITIES Issuance of debt — — 1,238,389 — — 1,238,389 Repayment of debt — — (1,107,062 ) — — (1,107,062 ) Dividends paid (124,628 ) — — — — (124,628 ) Proceeds from the issuance of common shares 3,347 — — — — 3,347 Repurchase of common shares (1,834 ) — — — — (1,834 ) Debt issuance costs — — (12,380 ) — — (12,380 ) Net cash disbursed upon spin-off of Performance Fibers business (106,420 ) — — — — (106,420 ) Intercompany distributions — (149,525 ) — 65,318 84,207 — Other — — — (680 ) — (680 ) CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES (229,535 ) (149,525 ) 118,947 64,638 84,207 (111,268 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH — — — (50 ) — (50 ) CASH AND CASH EQUIVALENTS Change in cash and cash equivalents (91,000 ) 792 56,147 56,478 — 22,417 Balance, beginning of year 130,181 304 10,719 58,440 — 199,644 Balance, end of period $39,181 $1,096 $66,866 $114,918 — $222,061 |
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | |
Condensed Financial Statements, Captions [Line Items] | |
Schedule of Condensed Consolidating Statements of (Loss) Income and Comprehensive (Loss) Income | CONDENSED CONSOLIDATING STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME For the Three Months Ended June 30, 2015 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated SALES — — $115,801 — $115,801 Costs and Expenses Cost of sales — — 103,689 — 103,689 Selling and general expenses — 6,330 6,397 — 12,727 Other operating income, net — (461 ) (6,677 ) — (7,138 ) — 5,869 103,409 — 109,278 OPERATING (LOSS) INCOME — (5,869 ) 12,392 — 6,523 Interest expense (3,169 ) (2,540 ) (2,774 ) — (8,483 ) Interest and miscellaneous income (expense), net 1,871 680 (3,747 ) — (1,196 ) Equity in (loss) income from subsidiaries (238 ) 6,564 — (6,326 ) — (LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES (1,536 ) (1,165 ) 5,871 (6,326 ) (3,156 ) Income tax benefit (expense) — 927 (631 ) — 296 NET (LOSS) INCOME (1,536 ) (238 ) 5,240 (6,326 ) (2,860 ) Less: Net loss attributable to noncontrolling interest — — (1,324 ) — (1,324 ) NET (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. (1,536 ) (238 ) 6,564 (6,326 ) (1,536 ) OTHER COMPREHENSIVE LOSS Foreign currency translation adjustment (18,008 ) (18,008 ) (25,395 ) 36,016 (25,395 ) New Zealand joint venture cash flow hedges (1,896 ) (1,896 ) (2,917 ) 3,792 (2,917 ) Amortization of pension and postretirement plans, net of income tax 743 743 (5 ) (738 ) 743 Total other comprehensive loss (19,161 ) (19,161 ) (28,317 ) 39,070 (27,569 ) COMPREHENSIVE LOSS (20,697 ) (19,399 ) (23,077 ) 32,744 (30,429 ) Less: Comprehensive loss attributable to noncontrolling interest — — (9,730 ) (1 ) (9,731 ) COMPREHENSIVE LOSS ATTRIBUTABLE TO RAYONIER INC. ($20,697 ) ($19,399 ) ($13,347 ) $32,745 ($20,698 ) CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended June 30, 2014 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated SALES — — $163,145 — $163,145 Costs and Expenses Cost of sales — — 123,096 — 123,096 Selling and general expenses — 2,394 11,467 — 13,861 Other operating expense (income), net — 1,573 (12,962 ) — (11,389 ) — 3,967 121,601 — 125,568 OPERATING (LOSS) INCOME — (3,967 ) 41,544 — 37,577 Interest expense (3,196 ) (11,207 ) (1,209 ) — (15,612 ) Interest and miscellaneous income (expense), net 2,733 (4,101 ) (3,017 ) — (4,385 ) Equity in income from subsidiaries 16,814 31,220 — (48,034 ) — INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 16,351 11,945 37,318 (48,034 ) 17,580 Income tax benefit (expense) — 4,869 (18,425 ) — (13,556 ) INCOME FROM CONTINUING OPERATIONS 16,351 16,814 18,893 (48,034 ) 4,024 DISCONTINUED OPERATIONS, NET Income from discontinued operations, net of income taxes — — 12,084 — 12,084 NET INCOME 16,351 16,814 30,977 (48,034 ) 16,108 Less: Net loss attributable to noncontrolling interest — — (245 ) — (245 ) NET INCOME ATTRIBUTABLE TO RAYONIER INC. 16,351 16,814 31,222 (48,034 ) 16,353 OTHER COMPREHENSIVE INCOME Foreign currency translation adjustment 2,653 2,655 3,517 (5,308 ) 3,517 New Zealand joint venture cash flow hedges (598 ) (598 ) (920 ) 1,196 (920 ) Amortization of pension and postretirement plans, net of income tax 58,873 58,873 92,714 (151,587 ) 58,873 Total other comprehensive income 60,928 60,930 95,311 (155,699 ) 61,470 COMPREHENSIVE INCOME 77,279 77,744 126,288 (203,733 ) 77,578 Less: Comprehensive income attributable to noncontrolling interest — — 297 — 297 COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. $77,279 $77,744 $125,991 ($203,733 ) $77,281 CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Six Months Ended June 30, 2015 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated SALES — — $256,106 — $256,106 Costs and Expenses Cost of sales — — 210,923 — 210,923 Selling and general expenses — 11,279 12,347 — 23,626 Other operating income, net — (461 ) (12,252 ) — (12,713 ) — 10,818 211,018 — 221,836 OPERATING (LOSS) INCOME — (10,818 ) 45,088 — 34,270 Interest expense (6,337 ) (5,064 ) (5,626 ) — (17,027 ) Interest and miscellaneous income (expense), net 3,807 1,373 (7,871 ) — (2,691 ) Equity in income from subsidiaries 18,741 31,363 — (50,104 ) — INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 16,211 16,854 31,591 (50,104 ) 14,552 Income tax benefit (expense) — 1,887 (1,119 ) — 768 NET INCOME 16,211 18,741 30,472 (50,104 ) 15,320 Less: Net loss attributable to noncontrolling interest — — (891 ) — (891 ) NET INCOME ATTRIBUTABLE TO RAYONIER INC. 16,211 18,741 31,363 (50,104 ) 16,211 OTHER COMPREHENSIVE LOSS Foreign currency translation adjustment (28,438 ) (28,438 ) (39,718 ) 56,877 (39,717 ) New Zealand joint venture cash flow hedges (2,511 ) (2,511 ) (3,863 ) 5,022 (3,863 ) Amortization of pension and postretirement plans, net of income tax 1,524 1,524 15 (1,539 ) 1,524 Total other comprehensive loss (29,425 ) (29,425 ) (43,566 ) 60,360 (42,056 ) COMPREHENSIVE LOSS (13,214 ) (10,684 ) (13,094 ) 10,256 (26,736 ) Less: Comprehensive loss attributable to noncontrolling interest — — (13,522 ) — (13,522 ) COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. ($13,214 ) ($10,684 ) $428 $10,256 ($13,214 ) CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Six Months Ended June 30, 2014 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- Consolidating Adjustments Total Consolidated SALES — — $306,332 — $306,332 Costs and Expenses Cost of sales — — 238,995 — 238,995 Selling and general expenses — 4,544 22,554 — 27,098 Other operating expense (income), net — 3,948 (15,712 ) — (11,764 ) — 8,492 245,837 — 254,329 OPERATING (LOSS) INCOME — (8,492 ) 60,495 — 52,003 Interest expense (6,389 ) (18,140 ) (1,757 ) — (26,286 ) Interest and miscellaneous income (expense), net 5,431 (4,334 ) (6,494 ) — (5,397 ) Equity in income from subsidiaries 58,737 82,633 — (141,370 ) — INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 57,779 51,667 52,244 (141,370 ) 20,320 Income tax benefit (expense) — 7,070 (13,031 ) — (5,961 ) INCOME FROM CONTINUING OPERATIONS 57,779 58,737 39,213 (141,370 ) 14,359 DISCONTINUED OPERATIONS, NET Income from discontinued operations, net of income tax — — 43,092 — 43,092 NET INCOME 57,779 58,737 82,305 (141,370 ) 57,451 Less: Net loss attributable to noncontrolling interest — — (328 ) — (328 ) NET INCOME ATTRIBUTABLE TO RAYONIER INC. 57,779 58,737 82,633 (141,370 ) 57,779 OTHER COMPREHENSIVE INCOME Foreign currency translation adjustment 15,547 15,547 21,312 (31,086 ) 21,320 New Zealand joint venture cash flow hedges 514 514 791 (1,028 ) 791 Amortization of pension and postretirement plans, net of income tax 60,970 60,970 94,334 (155,304 ) 60,970 Total other comprehensive income 77,031 77,031 116,437 (187,418 ) 83,081 COMPREHENSIVE INCOME 134,810 135,768 198,742 (328,788 ) 140,532 Less: Comprehensive income attributable to noncontrolling interest — — 5,722 — 5,722 COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. $134,810 $135,768 $193,020 ($328,788 ) $134,810 |
Schedule of Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS As of June 30, 2015 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $5,366 $45,941 $40,325 — $91,632 Accounts receivable, less allowance for doubtful accounts — 91 19,353 — 19,444 Inventory — — 13,362 — 13,362 Prepaid and other current assets — 4,863 16,359 — 21,222 Total current assets 5,366 50,895 89,399 — 145,660 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — 2,086,729 — 2,086,729 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS — — 69,726 — 69,726 NET PROPERTY, PLANT AND EQUIPMENT — 480 5,954 — 6,434 INVESTMENT IN SUBSIDIARIES 1,516,408 2,268,652 — (3,785,060 ) — INTERCOMPANY NOTES RECEIVABLE 252,815 21,928 — (274,743 ) — OTHER ASSETS 2,570 17,801 37,401 — 57,772 TOTAL ASSETS $1,777,159 $2,359,756 $2,289,209 ($4,059,803 ) $2,366,321 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable — $3,517 $18,879 — $22,396 Current maturities of long-term debt — 30,000 — — 30,000 Accrued taxes — 14 15,797 — 15,811 Accrued payroll and benefits — 2,476 2,120 — 4,596 Accrued interest 3,046 2,493 35,499 (32,995 ) 8,043 Other current liabilities — 11,990 19,624 — 31,614 Total current liabilities 3,046 50,490 91,919 (32,995 ) 112,460 LONG-TERM DEBT 370,000 115,972 236,381 — 722,353 PENSION AND OTHER POSTRETIREMENT BENEFITS — 34,081 (685 ) — 33,396 OTHER NON-CURRENT LIABILITIES — 6,615 14,225 — 20,840 INTERCOMPANY PAYABLE — 636,190 (254,315 ) (381,875 ) — TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,404,113 1,516,408 2,128,525 (3,644,933 ) 1,404,113 Noncontrolling interest — — 73,159 — 73,159 TOTAL SHAREHOLDERS’ EQUITY 1,404,113 1,516,408 2,201,684 (3,644,933 ) 1,477,272 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,777,159 $2,359,756 $2,289,209 ($4,059,803 ) $2,366,321 CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2014 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $102,218 $8,105 $51,235 — $161,558 Accounts receivable, less allowance for doubtful accounts — 1,409 22,609 — 24,018 Inventory — — 8,383 — 8,383 Prepaid and other current assets — 2,009 17,736 — 19,745 Total current assets 102,218 11,523 99,963 — 213,704 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — 2,088,501 — 2,088,501 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS — — 77,433 — 77,433 NET PROPERTY, PLANT AND EQUIPMENT — 433 6,273 — 6,706 INVESTMENT IN SUBSIDIARIES 1,463,303 2,053,911 — (3,517,214 ) — INTERCOMPANY NOTES RECEIVABLE 248,233 21,500 — (269,733 ) — OTHER ASSETS 2,763 18,369 45,639 — 66,771 TOTAL ASSETS $1,816,517 $2,105,736 $2,317,809 ($3,786,947 ) $2,453,115 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable — $2,810 $17,401 — $20,211 Current maturities of long-term debt — 129,706 — — 129,706 Accrued taxes — 11 11,394 — 11,405 Accrued payroll and benefits — 3,253 3,137 — 6,390 Accrued interest 3,047 2,517 31,281 (28,412 ) 8,433 Other current liabilities — 1,073 24,784 — 25,857 Total current liabilities 3,047 139,370 87,997 (28,412 ) 202,002 LONG-TERM DEBT 325,000 31,000 265,849 — 621,849 PENSION AND OTHER POSTRETIREMENT BENEFITS — 34,161 (684 ) — 33,477 OTHER NON-CURRENT LIABILITIES — 6,436 14,200 — 20,636 INTERCOMPANY PAYABLE — 431,466 (153,754 ) (277,712 ) — TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,488,470 1,463,303 2,017,520 (3,480,823 ) 1,488,470 Noncontrolling interest — — 86,681 — 86,681 TOTAL SHAREHOLDERS’ EQUITY 1,488,470 1,463,303 2,104,201 (3,480,823 ) 1,575,151 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,816,517 $2,105,736 $2,317,809 ($3,786,947 ) $2,453,115 |
Schedule of Condensed Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2015 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES ($25,092 ) ($13,561 ) $110,401 $14,135 $85,883 INVESTING ACTIVITIES Capital expenditures — (134 ) (25,996 ) — (26,130 ) Real estate development costs — — (578 ) — (578 ) Purchase of timberlands — — (88,414 ) — (88,414 ) Change in restricted cash — — 4,160 — 4,160 Investment in Subsidiaries — 8,753 — (8,753 ) — Other — — 3,689 — 3,689 CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES — 8,619 (107,139 ) (8,753 ) (107,273 ) FINANCING ACTIVITIES Issuance of debt — 57,000 2,100 — 59,100 Repayment of debt — (28,000 ) (3,472 ) — (31,472 ) Dividends paid (63,421 ) — — — (63,421 ) Proceeds from the issuance of common shares 718 — — — 718 Repurchase of common shares (9,057 ) — — — (9,057 ) Intercompany distributions — 13,778 (8,396 ) (5,382 ) — CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES (71,760 ) 42,778 (9,768 ) (5,382 ) (44,132 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH — — (4,404 ) — (4,404 ) CASH AND CASH EQUIVALENTS Change in cash and cash equivalents (96,852 ) 37,836 (10,910 ) — (69,926 ) Balance, beginning of year 102,218 8,105 51,235 — 161,558 Balance, end of period $5,366 $45,941 $40,325 — $91,632 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2014 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated CASH PROVIDED BY OPERATING ACTIVITIES $138,535 $150,518 $87,098 ($147,007 ) $229,144 INVESTING ACTIVITIES Capital expenditures — (201 ) (33,396 ) — (33,597 ) Capital expenditures from discontinued operations — — (47,050 ) — (47,050 ) Real estate development costs — — (2,595 ) — (2,595 ) Purchase of timberlands — — (74,817 ) — (74,817 ) Change in restricted cash — — 63,128 — 63,128 Investment in Subsidiaries — (62,800 ) — 62,800 — Other — — (478 ) — (478 ) CASH USED FOR INVESTING ACTIVITIES — (63,001 ) (95,208 ) 62,800 (95,409 ) FINANCING ACTIVITIES Issuance of debt — 1,238,389 — — 1,238,389 Repayment of debt — (1,107,062 ) — — (1,107,062 ) Dividends paid (124,628 ) — — — (124,628 ) Proceeds from the issuance of common shares 3,347 — — — 3,347 Repurchase of common shares (1,834 ) — — — (1,834 ) Debt issuance costs — (12,380 ) — — (12,380 ) Net cash disbursed upon spin-off of Performance Fibers business (106,420 ) — — — (106,420 ) Intercompany distributions — (149,525 ) 65,318 84,207 — Other — — (680 ) — (680 ) CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES (229,535 ) (30,578 ) 64,638 84,207 (111,268 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH — — (50 ) — (50 ) CASH AND CASH EQUIVALENTS Change in cash and cash equivalents (91,000 ) 56,939 56,478 — 22,417 Balance, beginning of year 130,181 11,023 58,440 — 199,644 Balance, end of period $39,181 $67,962 $114,918 — $222,061 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - $ / shares | Jul. 20, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 |
Subsequent Event [Line Items] | ||||||
Dividends declared (in dollars per share) | $ 0.25 | $ 0.49 | $ 0.50 | $ 0.98 | $ 2.03 | |
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividends declared (in dollars per share) | $ 0.25 |
DISCONTINUED OPERATIONS - Narra
DISCONTINUED OPERATIONS - Narrative (Details) $ in Thousands | Jun. 27, 2014USD ($)companyshares | Jun. 30, 2015USD ($)T | Jun. 30, 2014USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Change in restricted cash | $ 4,160 | $ 63,128 | |
Payments of dividends | $ 63,200 | $ 63,421 | $ 124,628 |
Annual number of tons of hardwood that can be provided to former subsidiary | T | 120,000 | ||
Performance Fibers business [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of post-spin companies | company | 2 | ||
Cash distribution from former subsidiary | $ 906,200 | ||
Change in restricted cash | 75,000 | ||
Performance Fibers business [Member] | Senior Notes [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Rayonier Advanced Materials debt | 550,000 | ||
Performance Fibers business [Member] | Term Loans [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Rayonier Advanced Materials debt | 325,000 | ||
Performance Fibers business [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Rayonier Advanced Materials debt | $ 75,000 | ||
Performance Fibers business [Member] | Common Stock [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of Rayonier Advanced Materials shares for every three Rayonier shares | shares | 1 | ||
Number of Rayonier shares for issuance of one Rayonier Advanced Materials share | shares | 3 |
DISCONTINUED OPERATIONS - Summa
DISCONTINUED OPERATIONS - Summary of Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income tax expense | $ 0 | $ (5,966) | $ 0 | $ (21,231) |
Income from discontinued operations, net | $ 0 | 12,084 | $ 0 | 43,092 |
Performance Fibers business [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Sales | 212,680 | 456,180 | ||
Cost of sales and other | (174,961) | (368,868) | ||
Transaction expenses | (19,669) | (22,989) | ||
Income from discontinued operations before income taxes | 18,050 | 64,323 | ||
Income tax expense | (5,966) | (21,231) | ||
Income from discontinued operations, net | $ 12,084 | $ 43,092 |
DISCONTINUED OPERATIONS - Inter
DISCONTINUED OPERATIONS - Interest Expense Allocated to Discontinued Operations (Details) - Jun. 30, 2014 - USD ($) $ in Thousands | Total | Total |
Performance Fibers business [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Interest expense allocated to the Performance Fibers business | $ (1,910) | $ (4,205) |
DISCONTINUED OPERATIONS - Depre
DISCONTINUED OPERATIONS - Depreciation, Amortization, and Capital Expenditures (Details) - Jun. 30, 2014 - Performance Fibers business [Member] - USD ($) $ in Thousands | Total | Total |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Depreciation and amortization | $ 17,336 | $ 37,985 |
Capital expenditures | $ 29,880 | $ 47,050 |
DISCONTINUED OPERATIONS - Elimi
DISCONTINUED OPERATIONS - Elimination of Intercompany Hardwood Purchases (Details) - Jun. 30, 2014 - USD ($) $ in Thousands | Total | Total |
Discontinued Operations and Disposal Groups [Abstract] | ||
Hardwood purchases | $ 1,190 | $ 3,935 |
(LOSS) EARNINGS PER COMMON SH46
(LOSS) 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, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Income amounts attributable to Rayonier Inc. | |||||
(Loss) income from continuing operations | $ (2,860) | $ 4,024 | $ 15,320 | $ 14,359 | |
Less: Net (loss) from continuing operations attributable to noncontrolling interest | (1,324) | (245) | (891) | (328) | |
(Loss) income from continuing operations attributable to Rayonier Inc. | (1,536) | 4,269 | 16,211 | 14,687 | |
Income from discontinued operations, net, attributable to Rayonier Inc. | 0 | 12,084 | 0 | 43,092 | |
NET (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | $ (1,536) | $ 16,353 | $ 16,211 | $ 57,779 | |
Shares used for determining basic (loss) earnings per common share | 126,635,710 | 126,434,376 | 126,625,081 | 126,390,891 | |
Dilutive effect of: | |||||
Stock options | 0 | 293,213 | 146,754 | 296,768 | |
Performance and restricted shares | 0 | 201,956 | 30,515 | 194,995 | |
Assumed conversion of Senior Exchangeable Notes | [1] | 0 | 2,631,514 | 702,301 | 2,579,402 |
Assumed conversion of warrants | [1] | 0 | 2,738,606 | 0 | 2,656,633 |
Shares used for determining diluted (loss) earnings per common share | 126,635,710 | 132,299,665 | 127,504,651 | 132,118,689 | |
Basic (loss) earnings per common share attributable to Rayonier Inc.: | |||||
Continuing Operations, (in dollars per share) | $ (0.01) | $ 0.03 | $ 0.13 | $ 0.12 | |
Discontinued Operations, (in dollars per share) | 0 | 0.10 | 0 | 0.34 | |
Net (Loss) Income, Basic (in dollars per share) | (0.01) | 0.13 | 0.13 | 0.46 | |
Diluted (loss) earnings per common share attributable to Rayonier Inc.: | |||||
Continuing Operations, (in dollars per share) | (0.01) | 0.03 | 0.13 | 0.11 | |
Discontinued Operations, (in dollars per share) | 0 | 0.09 | 0 | 0.33 | |
Net (Loss) Income, Diluted (in dollars per share) | $ (0.01) | $ 0.12 | $ 0.13 | $ 0.44 | |
[1] | Rayonier will not issue additional shares upon future exchange or maturity of the Senior Exchangeable Notes due 2015 (the “2015 Notes”) due to offsetting hedges. ASC 260, Earnings Per Share requires the assumed conversion of the 2015 Notes to be included in dilutive shares if the average stock price for the period exceeds the strike price, while the assumed conversion of the hedges is excluded since they are anti-dilutive. The full dilutive effect of the 2015 Notes was included for all periods presented, except for second quarter 2015 due to the loss incurred in that period. Rayonier will distribute additional shares upon maturity of the warrants sold in conjunction with the 2015 Notes if the stock price exceeds $28.11 per share. The exchange price on the warrants is lower than periods prior to second quarter 2014 as it has been adjusted to reflect the spin-off of the Performance Fibers business. The warrants were not dilutive for the three and six months ended June 30, 2015 as the average stock price for these periods did not exceed the strike price. For further information, see Note 13 — Debt in the 2014 Form 10-K and Note 15 — Debt of this Form 10-Q. |
(LOSS) EARNINGS PER COMMON SH47
(LOSS) EARNINGS PER COMMON SHARE - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - $ / shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive shares excluded from the computations of diluted earnings per share | 659,380 | 3,138,558 | 1,639,537 | 3,078,595 | |
Warrants on Senior Exchangeable Notes due 2015 [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Strike price of warrants | $ 28.11 | $ 28.11 | |||
Stock options, performance and restricted shares [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive shares excluded from the computations of diluted earnings per share | [1] | 158,191 | 507,044 | 937,236 | 499,193 |
Assumed conversion of exchangeable note hedges [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive shares excluded from the computations of diluted earnings per share | [2] | 0 | 2,631,514 | 702,301 | 2,579,402 |
Assumed conversion of Senior Exchangeable Notes due 2015 [Member] | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Anti-dilutive shares excluded from the computations of diluted earnings per share | [1] | 501,189 | 0 | 0 | 0 |
[1] | For the three months ended June 30, 2015, the assumed conversion of the 2015 Notes, as well as incremental shares related to stock options, performance shares, and restricted shares, were not included in the computation of diluted loss per share as their inclusion would have an anti-dilutive effect. | ||||
[2] | Rayonier will not issue additional shares upon future exchange or maturity of the Senior Exchangeable Notes due 2015 (the “2015 Notes”) due to offsetting hedges. ASC 260, Earnings Per Share requires the assumed conversion of the 2015 Notes to be included in dilutive shares if the average stock price for the period exceeds the strike price, while the assumed conversion of the hedges is excluded since they are anti-dilutive. The full dilutive effect of the 2015 Notes was included for all periods presented, except for second quarter 2015 due to the loss incurred in that period. Rayonier will distribute additional shares upon maturity of the warrants sold in conjunction with the 2015 Notes if the stock price exceeds $28.11 per share. The exchange price on the warrants is lower than periods prior to second quarter 2014 as it has been adjusted to reflect the spin-off of the Performance Fibers business. The warrants were not dilutive for the three and six months ended June 30, 2015 as the average stock price for these periods did not exceed the strike price. For further information, see Note 13 — Debt in the 2014 Form 10-K and Note 15 — Debt of this Form 10-Q. |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes from Continuing Operations - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
U.S. federal statutory tax rate | 35.00% | 35.00% | 35.00% | 35.00% |
INCOME TAXES - Schedule of Effe
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Income tax (benefit) expense at federal statutory rate | $ (1,105) | $ 6,153 | $ 5,093 | $ 7,112 |
Income tax (benefit) expense at federal statutory rate (percent) | 35.00% | 35.00% | 35.00% | 35.00% |
REIT income and taxable losses | $ 1,077 | $ (5,625) | $ (6,894) | $ (13,823) |
REIT income and taxable losses (percent) | (34.10%) | (32.00%) | (47.40%) | (69.30%) |
Foreign operations | $ 101 | $ (728) | $ (645) | $ (841) |
Foreign operations (percent) | (3.20%) | (4.10%) | (4.40%) | (0.30%) |
Net operating loss valuation allowance | $ (216) | $ 0 | $ 1,386 | $ 0 |
Net operating loss valuation allowance (percent) | 6.90% | 0.00% | 9.50% | 0.00% |
Non-deductible real estate losses | $ 0 | $ 590 | $ 0 | $ 681 |
Non-deductible real estate losses (percent) | 0.00% | 3.40% | 0.00% | 1.20% |
Other | $ (153) | $ 119 | $ 292 | $ 138 |
Other (percent) | 4.80% | 0.60% | 2.00% | 0.30% |
Income tax (benefit) expense before discrete items | $ (296) | $ 509 | $ (768) | $ (6,733) |
Income tax (benefit) expense before discrete items (percent) | 9.40% | 2.90% | (5.30%) | (33.10%) |
CBPC valuation allowance | $ 0 | $ 15,574 | $ 0 | $ 15,574 |
CBPC valuation allowance (percent) | (0.00%) | 88.70% | (0.00%) | 76.60% |
Spin-off related costs | $ 0 | $ 797 | $ 0 | $ 797 |
Spin-off related costs (percent) | (0.00%) | 4.50% | (0.00%) | 3.90% |
Deferred tax inventory valuations | $ 0 | $ (3,293) | $ 0 | $ (3,293) |
Deferred tax inventory valuations (percent) | (0.00%) | (18.70%) | (0.00%) | (16.20%) |
Other | $ 0 | $ (31) | $ 0 | $ (384) |
Other (percent) | 0.00% | (0.30%) | 0.00% | (1.90%) |
Income tax (benefit) expense as reported for continuing operations | $ (296) | $ 13,556 | $ (768) | $ 5,961 |
Income tax expense as reported for continuing operations (percent) | 9.40% | 77.10% | (5.30%) | 29.30% |
INCOME TAXES - Provision for 50
INCOME TAXES - Provision for Income Taxes from Discontinued Operations Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Loss Carryforwards [Line Items] | ||||
Income tax expense related to discontinued operations | $ 0 | $ 5,966 | $ 0 | $ 21,231 |
Performance Fibers business [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income tax expense related to discontinued operations | $ 5,966 | $ 21,231 |
HIGHER AND BETTER USE TIMBERL51
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS - Analysis of Higher and Better Use Timberlands and Real Estate Development Costs (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | ||
Real Estate, Land and Land Development Costs [Roll Forward] | |||
Non-current portion, Beginning Balance | $ 77,433 | ||
Plus: Current portion, Beginning Balance | [1] | 4,932 | |
Total Balance, Beginning Balance | 82,365 | ||
Non-cash cost of land sold and real estate development costs recovered upon sale | (4,262) | ||
Timber depletion from harvesting activities and basis of timber sold in real estate sales | (1,340) | ||
Capitalized real estate development costs | [2] | 926 | |
Capital expenditures (silviculture) | 100 | ||
Acquisitions | 0 | ||
Transfers | 0 | ||
Inventory, Real Estate, Land and Land Development Costs, Other | (28) | ||
Total Balance, Ending Balance | 77,761 | ||
Less: Current portion, Ending Balance | [1] | (8,035) | |
Non-current portion, Ending Balance | 69,726 | ||
Capitalized real estate development costs, cash outflows | 578 | $ 2,595 | |
Capitalized real estate development costs, change in accrued spending | 348 | ||
Land and Timber [Member] | |||
Real Estate, Land and Land Development Costs [Roll Forward] | |||
Non-current portion, Beginning Balance | 65,959 | ||
Plus: Current portion, Beginning Balance | [1] | 4,875 | |
Total Balance, Beginning Balance | 70,834 | ||
Non-cash cost of land sold and real estate development costs recovered upon sale | (4,205) | ||
Timber depletion from harvesting activities and basis of timber sold in real estate sales | (1,340) | ||
Capitalized real estate development costs | [2] | 0 | |
Capital expenditures (silviculture) | 100 | ||
Acquisitions | 0 | ||
Transfers | 0 | ||
Inventory, Real Estate, Land and Land Development Costs, Other | 0 | ||
Total Balance, Ending Balance | 65,389 | ||
Less: Current portion, Ending Balance | [1] | (7,488) | |
Non-current portion, Ending Balance | 57,901 | ||
Development Costs [Member] | |||
Real Estate, Land and Land Development Costs [Roll Forward] | |||
Non-current portion, Beginning Balance | 11,474 | ||
Plus: Current portion, Beginning Balance | [1] | 57 | |
Total Balance, Beginning Balance | 11,531 | ||
Non-cash cost of land sold and real estate development costs recovered upon sale | (57) | ||
Timber depletion from harvesting activities and basis of timber sold in real estate sales | 0 | ||
Capitalized real estate development costs | [2] | 926 | |
Capital expenditures (silviculture) | 0 | ||
Acquisitions | 0 | ||
Transfers | 0 | ||
Inventory, Real Estate, Land and Land Development Costs, Other | (28) | ||
Total Balance, Ending Balance | 12,372 | ||
Less: Current portion, Ending Balance | [1] | (547) | |
Non-current portion, Ending Balance | $ 11,825 | ||
[1] | The current portion of Higher and Better Use Timberlands and Real Estate Development Costs is recorded in Inventory. See Note 14 — Inventory for additional information. | ||
[2] | Capitalized real estate development costs for the six months ended June 30, 2015 of $926,000 consisted of $578,000 in cash outflows and a $348,000 change in accrued spending. |
RESTRICTED DEPOSITS (Details)
RESTRICTED DEPOSITS (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Restricted Cash and Investments [Abstract] | ||
Maximum time period proceeds from LKE sale maintained with third party intermediary | 180 days | |
Restricted deposits | $ 2.5 | $ 6.7 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | $ 1,575,151 | $ 1,755,243 | $ 1,755,243 | ||||
Net income (loss) | $ (2,860) | $ 16,108 | 15,320 | 57,451 | 97,846 | ||
Dividends ($0.50 and $2.03 per share for the six months ended June 30, 2015 and the year ended December 31, 2014, respectively) | (63,380) | (256,861) | |||||
Contribution to Rayonier Advanced Materials | 19,130 | ||||||
Adjustments to Rayonier Advanced Materials | [1] | (8,226) | |||||
Issuance of shares under incentive stock plans | 718 | 5,579 | |||||
Stock-based compensation | 2,588 | 7,869 | |||||
Tax deficiency on stock-based compensation | (272) | (791) | |||||
Repurchase of common shares | (10,797) | [2],[3] | (1,858) | ||||
Net gain (loss) from pension and postretirement plans | 1,524 | (24,147) | |||||
Noncontrolling interest redemption of shares | (931) | ||||||
Foreign currency translation adjustment | (25,395) | 3,517 | (39,717) | 21,320 | (15,847) | ||
Joint venture cash flow hedges | (2,917) | $ (920) | (3,863) | $ 791 | (1,855) | ||
Ending balance | $ 1,477,272 | $ 1,477,272 | $ 1,575,151 | ||||
Dividends [Abstract] | |||||||
Dividends declared per share | $ 0.25 | $ 0.49 | $ 0.50 | $ 0.98 | $ 2.03 | ||
Average price of common stock repurchased (in dollars per share) | $ 25.94 | ||||||
Number of common shares outstanding | 126,492,061 | 126,492,061 | 126,773,097 | ||||
Remaining share repurchase authorization amount | $ 89,300 | $ 89,300 | |||||
Common Shares [Member] | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance (in shares) | [4] | 126,773,097 | 126,257,870 | 126,257,870 | |||
Beginning balance | $ 702,598 | $ 692,100 | $ 692,100 | ||||
Contribution to Rayonier Advanced Materials | $ (301) | ||||||
Issuance of shares under incentive stock plan (in shares) | [4] | 134,448 | 561,701 | ||||
Issuance of shares under incentive stock plans | $ 718 | $ 5,579 | |||||
Stock-based compensation | 2,588 | 7,869 | |||||
Tax deficiency on stock-based compensation | $ (272) | $ (791) | |||||
Repurchase of common shares (in shares) | [4] | (415,484) | [2],[3] | (46,474) | |||
Repurchase of common shares | $ (10,797) | [2],[3] | $ (1,858) | ||||
Ending balance (in shares) | [4] | 126,492,061 | 126,492,061 | 126,773,097 | |||
Ending balance | $ 694,835 | $ 694,835 | $ 702,598 | ||||
Retained Earnings [Member] | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | 790,697 | 1,015,209 | 1,015,209 | ||||
Net income (loss) | 16,211 | 99,337 | |||||
Dividends ($0.50 and $2.03 per share for the six months ended June 30, 2015 and the year ended December 31, 2014, respectively) | (63,380) | (256,861) | |||||
Contribution to Rayonier Advanced Materials | (61,318) | ||||||
Adjustments to Rayonier Advanced Materials | [1] | (5,670) | |||||
Ending balance | 743,528 | 743,528 | 790,697 | ||||
Accumulated Other Comprehensive Income (Loss) [Member] | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | (4,825) | (46,139) | (46,139) | ||||
Contribution to Rayonier Advanced Materials | 80,749 | ||||||
Adjustments to Rayonier Advanced Materials | [1] | (2,556) | |||||
Net gain (loss) from pension and postretirement plans | 1,524 | (24,147) | |||||
Foreign currency translation adjustment | (28,438) | (11,526) | |||||
Joint venture cash flow hedges | (2,511) | (1,206) | |||||
Ending balance | (34,250) | (34,250) | (4,825) | ||||
Non-controlling Interest [Member] | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | 86,681 | $ 94,073 | 94,073 | ||||
Net income (loss) | (891) | (1,491) | |||||
Noncontrolling interest redemption of shares | (931) | ||||||
Foreign currency translation adjustment | (11,279) | (4,321) | |||||
Joint venture cash flow hedges | (1,352) | (649) | |||||
Ending balance | 73,159 | $ 73,159 | $ 86,681 | ||||
Common Shares [Member] | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Repurchase of common shares | $ (10,700) | ||||||
NORTH CAROLINA [Member] | |||||||
Dividends [Abstract] | |||||||
Par value (in dollars per share) | $ 0 | $ 0 | |||||
[1] | Primarily relates to adjustments made to the Rayonier Advanced Materials contribution as income taxes and pension and postretirement plan assets and obligations were finalized. | ||||||
[2] | During the second quarter the Company repurchased approximately $10.7 million of common stock at an average price of $25.94 per share. As of June 30, 2015, the Company had 126.5 million shares of common stock outstanding and $89.3 million remaining in its share repurchase authorization announced in June 2015. | ||||||
[3] | Includes shares of the Company’s common stock purchased from employees in non-open market transactions. The shares of stock were sold by current and former employees of the Company in exchange for cash that was used to pay withholding taxes associated with the vesting of restricted stock awards under the Company’s stock incentive plan. The price per share surrendered is based on the closing price of the company’s stock on the respective vesting dates of the awards. | ||||||
[4] | The Company’s common shares are registered in North Carolina and have a $0.00 par value. |
SEGMENT AND GEOGRAPHICAL INFO54
SEGMENT AND GEOGRAPHICAL INFORMATION - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
SALES | $ 115,801 | $ 163,145 | $ 256,106 | $ 306,332 |
OPERATING INCOME | 6,523 | 37,577 | 34,270 | 52,003 |
Unallocated Interest Expense and Other | (9,679) | (19,997) | (19,718) | (31,683) |
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (3,156) | 17,580 | 14,552 | 20,320 |
DEPRECIATION, DEPLETION AND AMORTIZATION | 23,850 | 30,335 | 53,826 | 56,316 |
NON-CASH COST OF LAND SOLD AND REAL ESTATE COSTS RECOVERED UPON SALE | 1,191 | 2,322 | 4,938 | 5,398 |
Southern Timber [Member] | ||||
Segment Reporting Information [Line Items] | ||||
SALES | 32,681 | 31,525 | 68,212 | 65,402 |
OPERATING INCOME | 11,777 | 8,886 | 24,190 | 19,379 |
DEPRECIATION, DEPLETION AND AMORTIZATION | 12,650 | 10,709 | 26,951 | 22,705 |
NON-CASH COST OF LAND SOLD AND REAL ESTATE COSTS RECOVERED UPON SALE | 0 | 0 | 0 | 0 |
Pacific Northwest Timber [Member] | ||||
Segment Reporting Information [Line Items] | ||||
SALES | 17,102 | 25,053 | 36,256 | 58,090 |
OPERATING INCOME | 1,687 | 8,785 | 4,275 | 21,427 |
DEPRECIATION, DEPLETION AND AMORTIZATION | 2,941 | 5,194 | 6,731 | 11,492 |
NON-CASH COST OF LAND SOLD AND REAL ESTATE COSTS RECOVERED UPON SALE | 0 | 0 | 0 | 0 |
New Zealand Timber [Member] | ||||
Segment Reporting Information [Line Items] | ||||
SALES | 39,223 | 44,543 | 80,417 | 82,307 |
OPERATING INCOME | (945) | 2,249 | 4,749 | 4,660 |
DEPRECIATION, DEPLETION AND AMORTIZATION | 7,183 | 7,669 | 15,186 | 14,163 |
NON-CASH COST OF LAND SOLD AND REAL ESTATE COSTS RECOVERED UPON SALE | 0 | (2) | 0 | 2,096 |
Real Estate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
SALES | 6,945 | 34,017 | 30,736 | 39,547 |
OPERATING INCOME | 1,421 | 27,764 | 14,003 | 28,489 |
DEPRECIATION, DEPLETION AND AMORTIZATION | 1,006 | 6,422 | 4,818 | 7,333 |
NON-CASH COST OF LAND SOLD AND REAL ESTATE COSTS RECOVERED UPON SALE | 1,191 | 2,324 | 4,938 | 3,302 |
Trading [Member] | ||||
Segment Reporting Information [Line Items] | ||||
SALES | 19,850 | 29,224 | 40,485 | 64,910 |
OPERATING INCOME | (84) | (132) | 186 | (544) |
DEPRECIATION, DEPLETION AND AMORTIZATION | 0 | 0 | 0 | 0 |
NON-CASH COST OF LAND SOLD AND REAL ESTATE COSTS RECOVERED UPON SALE | 0 | 0 | 0 | 0 |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
SALES | 0 | (1,217) | 0 | (3,924) |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
OPERATING INCOME | (7,333) | (9,975) | (13,133) | (21,408) |
DEPRECIATION, DEPLETION AND AMORTIZATION | 70 | 341 | 140 | 623 |
NON-CASH COST OF LAND SOLD AND REAL ESTATE COSTS RECOVERED UPON SALE | $ 0 | $ 0 | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME55
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | |
Derivative [Line Items] | |
AOCI balance expected to be reclassified in next twelve months, net of tax | $ (4.1) |
Matariki Forestry Group [Member] | Not Designated as Hedging Instrument [Member] | Senior Secured Facilities Agreement as Amended July 2013, Revolving Cash Advance Facility due 2016 [Member] | Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Percent of New Zealand JV variable rate debt hedged | 81.00% |
New Zealand Timber [Member] | Minimum [Member] | |
Derivative [Line Items] | |
Percent of forecast sales and purchases hedged for three months | 50.00% |
Percent of forecast sales and purchases hedged for three to 12 months | 50.00% |
New Zealand Timber [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Percent of forecast sales and purchases hedged for three months | 90.00% |
Percent of forecast sales and purchases hedged for three to 12 months | 75.00% |
Percent of forecast sales and purchases hedged for 12 to 18 months | 50.00% |
DERIVATIVE FINANCIAL INSTRUME56
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Income Statement Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Designated as Hedging Instrument [Member] | Foreign currency exchange contracts [Member] | Other comprehensive (loss) income [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Designated hedged item, gain (loss) recognized in other comprehensive income | $ (1,621) | $ (818) | $ (2,308) | $ 669 |
Designated as Hedging Instrument [Member] | Foreign currency exchange contracts [Member] | Other comprehensive (loss) income [Member] | Net Investment Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Designated hedged item, gain (loss) recognized in other comprehensive income | 2,173 | 0 | 3,107 | 0 |
Designated as Hedging Instrument [Member] | Foreign currency option contracts [Member] | Other comprehensive (loss) income [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Designated hedged item, gain (loss) recognized in other comprehensive income | (2,658) | (504) | (3,339) | 221 |
Not Designated as Hedging Instrument [Member] | Foreign currency exchange contracts [Member] | Other operating (income) expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-designated hedged item, gain (Ioss) recognized in income | 0 | 0 | 0 | 25 |
Not Designated as Hedging Instrument [Member] | Foreign currency option contracts [Member] | Other operating (income) expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-designated hedged item, gain (Ioss) recognized in income | 546 | 0 | 546 | 7 |
Not Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | Interest and miscellaneous (expense) income, net [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-designated hedged item, gain (Ioss) recognized in income | 1,417 | 729 | 3,273 | 1,862 |
Not Designated as Hedging Instrument [Member] | Fuel hedge contracts [Member] | Cost of sales (benefit) [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Non-designated hedged item, gain (Ioss) recognized in income | $ 0 | $ (92) | $ 0 | $ 225 |
DERIVATIVE FINANCIAL INSTRUME57
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Notional Amounts (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign currency exchange contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 28,200 | $ 28,540 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign currency option contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 135,700 | 79,400 |
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | Foreign currency exchange contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 23,828 | 27,419 |
Not Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 129,352 | $ 161,968 |
DERIVATIVE FINANCIAL INSTRUME58
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Balance Sheet Location (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Derivatives, Fair Value [Line Items] | |||
Fair value, derivative asset | [1] | $ 2,884 | $ 688 |
Fair value, derivative liability | [1] | (15,374) | (9,377) |
Prepaid and other current assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value, derivative asset | [1] | 2,884 | 431 |
Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value, derivative asset | [1] | 0 | 257 |
Other current liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value, derivative liability | [1] | (5,811) | (1,934) |
Other non-current liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value, derivative liability | [1] | (9,563) | (7,443) |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign currency exchange contracts [Member] | Prepaid and other current assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value, derivative asset | [1] | 0 | 132 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign currency exchange contracts [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value, derivative asset | [1] | 0 | 59 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign currency exchange contracts [Member] | Other current liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value, derivative liability | [1] | (2,197) | (272) |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign currency exchange contracts [Member] | Other non-current liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value, derivative liability | [1] | (639) | 0 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign currency option contracts [Member] | Prepaid and other current assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value, derivative asset | [1] | 0 | 299 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign currency option contracts [Member] | Other assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value, derivative asset | [1] | 0 | 198 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign currency option contracts [Member] | Other current liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value, derivative liability | [1] | (3,614) | (1,439) |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign currency option contracts [Member] | Other non-current liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value, derivative liability | [1] | (653) | (196) |
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | Foreign currency exchange contracts [Member] | Prepaid and other current assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value, derivative asset | [1] | 2,884 | 0 |
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | Foreign currency exchange contracts [Member] | Other current liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value, derivative liability | [1] | 0 | (223) |
Not Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | Other current liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Fair value, derivative liability | [1] | $ (8,271) | $ (7,247) |
[1] | See Note 10 — Fair Value Measurements for further information on the fair value of the Company’s derivatives including their classification within the fair value hierarchy. |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Values Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Carrying Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | $ 91,632 | $ 161,558 | |
Restricted cash | [1] | 2,528 | 6,688 |
Current maturities of long-term debt | (30,000) | (129,706) | |
Long-term debt | (722,353) | (621,849) | |
Carrying Value [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swaps | [2] | (8,271) | (7,247) |
Carrying Value [Member] | Fair Value, Measurements, Recurring [Member] | Foreign currency exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency contracts | [2] | 48 | (304) |
Carrying Value [Member] | Fair Value, Measurements, Recurring [Member] | Foreign currency option contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency contracts | [2] | (4,267) | (1,138) |
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 91,632 | 161,558 | |
Restricted cash | [1] | 2,528 | 6,688 |
Current maturities of long-term debt | 0 | 0 | |
Long-term debt | 0 | 0 | |
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swaps | [2] | 0 | 0 |
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Foreign currency exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency contracts | [2] | 0 | 0 |
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Foreign currency option contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency contracts | [2] | 0 | 0 |
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Restricted cash | [1] | 0 | 0 |
Current maturities of long-term debt | (32,812) | (156,762) | |
Long-term debt | (725,543) | (628,476) | |
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swaps | [2] | (8,271) | (7,247) |
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Foreign currency exchange contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency contracts | [2] | 48 | (304) |
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Foreign currency option contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign currency contracts | [2] | $ (4,267) | $ (1,138) |
[1] | Restricted cash is recorded in “Other Assets” and represents the proceeds from LKE sales deposited with a third-party intermediary. | ||
[2] | See Note 9 — Derivative Financial Instruments and Hedging Activities for information regarding the Balance Sheet classification of the Company’s derivative financial instruments. |
FAIR VALUE MEASUREMENTS - Fai60
FAIR VALUE MEASUREMENTS - Fair Value Measurements Methods and Assumptions (Details) | 6 Months Ended |
Jun. 30, 2015 | |
Foreign currency exchange contracts [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurements, Valuation Techniques | 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 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurements, Valuation Techniques | The fair value of foreign currency option contracts is based on a mark-to-market calculation using the Black-Scholes option pricing model. |
Borrowings [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurements, Valuation Techniques | 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 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurements, Valuation Techniques | The fair value of interest rate contracts is determined by discounting the expected future cash flows, for each instrument, at prevailing interest rates. |
Cash, Cash Equivalents and Restricted Cash [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Measurements, Valuation Techniques | The carrying amount is equal to fair market value |
GUARANTEES (Details)
GUARANTEES (Details) - Jun. 30, 2015 - USD ($) $ in Thousands | Total | |
Guarantor Obligations [Line Items] | ||
Maximum Potential Payment | $ 19,715 | |
Carrying Amount of Associated Liability | 15,043 | |
Standby letters of credit [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum Potential Payment | [1] | 16,685 |
Carrying Amount of Associated Liability | [1] | 15,000 |
Guarantor Obligations Collateral for Industrial Revenue Bonds | $ 15,000 | |
Guarantor Obligations, Term | various dates during 2015 | |
Guarantees [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum Potential Payment | [2] | $ 2,254 |
Carrying Amount of Associated Liability | [2] | $ 43 |
Variable Interest Entity Recorded Liability For Performance Obligation | de minimis liability | |
Surety bonds [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum Potential Payment | [3] | $ 776 |
Carrying Amount of Associated Liability | [3] | $ 0 |
Surety Bond [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantor Obligations, Term | various dates during 2015 and 2016 | |
[1] | Approximately $15 million of the standby letters of credit serve as credit support for industrial revenue bonds. The remaining letters of credit support various insurance related agreements, primarily workers’ compensation. These letters of credit will expire at various dates during 2015 and will be renewed as required. | |
[2] | In conjunction with a timberland sale and note monetization in 2004, the Company issued a make-whole agreement pursuant to which it guaranteed $2.3 million of obligations of a special-purpose entity that was established to complete the monetization. At June 30, 2015, the Company has a de minimis liability to reflect the fair market value of its obligation to perform under the make-whole agreement. | |
[3] | Rayonier issues surety bonds primarily to secure timber harvesting obligations in the State of Washington and to provide collateral for the Company’s workers’ compensation self-insurance program in that state. These surety bonds expire at various dates during 2015 and 2016 and are expected to be renewed as required. |
CONTINGENCIES (Details)
CONTINGENCIES (Details) | Jan. 09, 2015claimplaintiff | Nov. 10, 2014claim |
Commitments and Contingencies Disclosure [Abstract] | ||
Number of claims filed | 5 | 5 |
Number of consolidated claims filed | 1 | |
Number of lead plaintiffs | plaintiff | 2 |
EMPLOYEE BENEFIT PLANS - Narrat
EMPLOYEE BENEFIT PLANS - Narrative (Details) - pension_plan | Dec. 31, 2014 | Jun. 30, 2015 |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | ||
Number of qualified defined benefit plans | 1 | |
General information | The Company has one qualified non-contributory defined benefit pension plan covering a portion of its employees | |
Unfunded plan | an unfunded plan that provides benefits in excess of amounts allowable under current tax law in the qualified plan | |
Other information | Currently, the pension plans are closed to new participants. | |
Return on asset assumption | 8.50% | 7.70% |
EMPLOYEE BENEFIT PLANS - Net Pe
EMPLOYEE BENEFIT PLANS - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Pension [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 371 | $ 1,544 | $ 742 | $ 3,168 | |
Interest cost | 830 | 4,452 | 1,659 | 9,135 | |
Expected return on plan assets | (1,007) | (6,330) | (2,014) | (12,988) | |
Amortization of prior service cost | 3 | 277 | 6 | 569 | |
Amortization of losses | 916 | 2,603 | 1,849 | 5,340 | |
Amortization of negative plan amendment | 0 | 0 | 0 | 0 | |
Net periodic benefit cost | [1] | 1,113 | 2,546 | 2,242 | 5,224 |
Postretirement [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 3 | 147 | 6 | 326 | |
Interest cost | 13 | 199 | 26 | 405 | |
Expected return on plan assets | 0 | 0 | 0 | 0 | |
Amortization of prior service cost | 0 | 4 | 0 | 8 | |
Amortization of losses | 3 | 116 | 6 | 245 | |
Amortization of negative plan amendment | 0 | (133) | 0 | (267) | |
Net periodic benefit cost | [1] | $ 19 | 333 | $ 38 | 717 |
Income from Discontinued Operations [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic benefit cost | $ 2,000 | $ 4,000 | |||
[1] | Net periodic benefit cost for the three and six months ended June 30, 2014 includes $2.0 million and $4.0 million, respectively, recorded in “Income from discontinued operations, net” on the Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income. |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Inventory [Line Items] | |||
Inventory | $ 13,362 | $ 8,383 | |
Real Estate Inventory [Member] | |||
Inventory [Line Items] | |||
Inventory | [1] | 8,035 | 4,932 |
Log Inventory [Member] | |||
Inventory [Line Items] | |||
Inventory | $ 5,327 | $ 3,451 | |
[1] | Represents HBU real estate (including capitalized development costs) expected to be sold within 12 months. |
DEBT (Details)
DEBT (Details) $ in Thousands, NZD in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) | Aug. 05, 2015USD ($) | Aug. 05, 2015NZD | |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 722,353 | $ 722,353 | $ 621,849 | ||
Current maturities of long-term debt | 30,000 | 30,000 | 129,706 | ||
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | |||||
Debt Instrument [Line Items] | |||||
Notional amount | 129,352 | 129,352 | $ 161,968 | ||
Revolving Credit Facility [Member] | Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Net debt borrowings | 27,000 | ||||
Remaining borrowing capacity | 153,200 | 153,200 | |||
Amount to secure outstanding letters of credit | 1,800 | 1,800 | |||
Revolving Credit Facility [Member] | Term Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Remaining borrowing capacity | 100,000 | 100,000 | |||
Working Capital Facility [Member] | Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Decrease in debt due to favorable changes in exchange rates | $ 24,100 | ||||
Senior Exchangeable Notes due 2015 [Member] | |||||
Debt Instrument [Line Items] | |||||
Maturity date | 2,015 | ||||
Exchange feature description | According to the indenture, the notes became exchangeable on May 15, 2015 through maturity. | ||||
Senior Exchangeable Notes due 2015 [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 100,000 | $ 100,000 | |||
Current maturities of long-term debt | 30,000 | 30,000 | |||
Working Capital Facility [Member] | Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Remaining borrowing capacity | 16,000 | 16,000 | |||
Shareholder Loan [Member] | Long-term Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Decrease in debt due to favorable changes in exchange rates | 3,500 | ||||
Matariki Forestry Group [Member] | Senior Secured Facilities Agreement as Amended July 2013, Revolving Cash Advance Facility due 2016 [Member] | |||||
Debt Instrument [Line Items] | |||||
New Zealand JV long-term variable rate debt | $ 160,000 | $ 160,000 | |||
Periodic effective interest rate | 6.50% | 6.50% | |||
Basis point credit line fee | 0.80% | ||||
Matariki Forestry Group [Member] | Senior Secured Facilities Agreement as Amended July 2013, Revolving Cash Advance Facility due 2016 [Member] | New Zealand Bank Bill Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis points on periodic interest rate | 0.80% | ||||
Matariki Forestry Group [Member] | Senior Secured Facilities Agreement as Amended July 2013, Revolving Cash Advance Facility due 2016 [Member] | Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | |||||
Debt Instrument [Line Items] | |||||
Notional amount | $ 129,000 | $ 129,000 | |||
Percent of variable rate debt | 81.00% | 81.00% | |||
Matariki Forestry Group [Member] | Working Capital Facility [Member] | Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayments of working capital facility | $ 2,100 | ||||
Matariki Forestry Group [Member] | Shareholder Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayments of shareholder loan | $ 1,400 | ||||
Subsequent Event [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 45,000 | ||||
Subsequent Event [Member] | Senior Exchangeable Notes due 2015 [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 131,000 | ||||
Subsequent Event [Member] | Matariki Forestry Group [Member] | Line of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | NZD | NZD 235 |
DEBT - Subsequent Event (Detail
DEBT - Subsequent Event (Details) NZD in Millions | Aug. 05, 2015USD ($)advance | Aug. 05, 2015NZDadvance | Aug. 05, 2015NZD | Jun. 30, 2015USD ($) | Dec. 31, 2014USD ($) |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 722,353,000 | $ 621,849,000 | |||
Senior Notes [Member] | Senior Exchangeable Notes due 2015 [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 100,000,000 | ||||
Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Transaction fees to be repaid | $ 2,000,000 | ||||
Proceeds for cash and general corporate purposes | $ 12,000,000 | ||||
Subsequent Event [Member] | New Zealand [Member] | |||||
Debt Instrument [Line Items] | |||||
Foreign currency exchange rate | 1.515 | 1.515 | |||
Subsequent Event [Member] | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Floating-rate cost spread | 1.25% | 1.25% | |||
Subsequent Event [Member] | Line of Credit [Member] | Matariki Forestry Group [Member] | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | NZD | NZD 235 | ||||
Related fees and expenses to be repaid | NZD | NZD 7 | ||||
Subsequent Event [Member] | Line of Credit [Member] | Term Loan Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt term | 9 years | 9 years | |||
Credit facility | $ 350,000,000 | ||||
All-in fixed rate cost (percent) | 3.30% | 3.30% | |||
Proceeds intended to borrow for capital infusion | $ 160,000,000 | ||||
Number of advances provided | advance | 2 | 2 | |||
Length of time post-closing to take advances | 8 months | 8 months | |||
Subsequent Event [Member] | Line of Credit [Member] | Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt term | 5 years | 5 years | |||
Credit facility | $ 200,000,000 | ||||
Long-term debt | $ 45,000,000 | ||||
Subsequent Event [Member] | Senior Notes [Member] | Senior Exchangeable Notes due 2015 [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.50% | 4.50% | |||
Long-term debt | $ 131,000,000 |
ACCUMULATED OTHER COMPREHENSI68
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | $ (4,825) | $ (46,139) | $ (46,139) | ||
Other comprehensive income/(loss) before reclassifications | (32,137) | 36,922 | |||
Amounts reclassified from accumulated other comprehensive loss | 2,712 | 4,392 | |||
Net other comprehensive income/(loss) | (29,425) | 41,314 | |||
Ending balance | (34,250) | (4,825) | |||
Net losses transferred to Rayonier Advanced Materials Pension Plans | 78,000 | ||||
Additional Losses from Revaluation Related to Spinoff | 30,000 | ||||
Net periodic pension cost | 5,000 | ||||
Income tax expense on pension plan contributed to Rayonier Advanced Materials | 0 | 843 | |||
Foreign currency translation gains (losses) [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | 25,533 | 36,914 | 36,914 | ||
Other comprehensive income/(loss) before reclassifications | (30,456) | (11,381) | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |||
Net other comprehensive income/(loss) | (30,456) | (11,381) | |||
Ending balance | (4,923) | 25,533 | |||
Net investment hedge of New Zealand JV [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (145) | 0 | 0 | ||
Other comprehensive income/(loss) before reclassifications | 2,019 | (145) | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |||
Net other comprehensive income/(loss) | 2,019 | (145) | |||
Ending balance | 1,874 | (145) | |||
New Zealand joint venture cash flow hedges [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (1,548) | (342) | (342) | ||
Other comprehensive income/(loss) before reclassifications | (3,700) | 510 | |||
Amounts reclassified from accumulated other comprehensive loss | 1,188 | (1,164) | (1,716) | ||
Net other comprehensive income/(loss) | (2,512) | (1,206) | |||
Ending balance | (4,060) | (1,548) | |||
New Zealand joint venture cash flow hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Amounts reclassified from accumulated other comprehensive loss | (1,188) | 2,007 | |||
Income tax expense on pension plan contributed to Rayonier Advanced Materials | 1,000 | ||||
Unrecognized components of employee benefit plans [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (28,665) | $ (82,711) | (82,711) | ||
Other comprehensive income/(loss) before reclassifications | 0 | 47,938 | [1] | ||
Amounts reclassified from accumulated other comprehensive loss | 1,524 | [2] | 6,108 | [3] | |
Net other comprehensive income/(loss) | 1,524 | 54,046 | |||
Ending balance | $ (27,141) | $ (28,665) | |||
[1] | Reflects $78 million, net of taxes, of comprehensive income due to the transfer of losses to Rayonier Advanced Materials Pension Plans. This comprehensive income was offset by $30 million, net of taxes, of losses as a result of revaluations required due to the spin-off at December 31, 2014. See Note 22 — Employee Benefit Plans in the 2014 Form 10-K for additional information. | ||||
[2] | This component of other comprehensive income is included in the computation of net periodic pension cost. See Note 13 — Employee Benefit Plans for additional information. | ||||
[3] | This accumulated other comprehensive income component is comprised of $5 million from the computation of net periodic pension cost and the $1 million write-off of a deferred tax asset related to the revaluation and transfer of liabilities as a result of the spin-off. |
ACCUMULATED OTHER COMPREHENSI69
ACCUMULATED OTHER COMPREHENSIVE INCOME (Reclassified AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other operating income, net | $ (7,138) | $ (11,389) | $ (12,713) | $ (11,764) | |
Comprehensive (loss) income attributable to noncontrolling interest | (9,731) | 297 | (13,522) | 5,722 | |
Income tax (expense) benefit | $ 296 | $ (13,556) | 768 | (5,961) | |
Income tax expense on pension plan contributed to Rayonier Advanced Materials | 0 | 843 | |||
Net loss (gain) from accumulated other comprehensive income | 2,712 | $ 4,392 | |||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Net loss (gain) from accumulated other comprehensive income | 1,188 | (1,164) | (1,716) | ||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Comprehensive (loss) income attributable to noncontrolling interest | (889) | 1,218 | |||
Income tax (expense) benefit | (462) | 254 | |||
Income tax expense on pension plan contributed to Rayonier Advanced Materials | $ 1,000 | ||||
Net loss (gain) from accumulated other comprehensive income | (1,188) | 2,007 | |||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Foreign Exchange Contract [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other operating income, net | 1,504 | (2,542) | |||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Foreign Exchange Option [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Other operating income, net | $ 1,035 | $ (937) |
OTHER OPERATING INCOME, NET (De
OTHER OPERATING INCOME, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Other Income and Expenses [Abstract] | |||||
Lease income, primarily from hunting leases | $ 5,890 | $ 3,966 | $ 9,999 | $ 7,003 | |
Other non-timber income | 688 | 440 | 2,052 | 993 | |
Foreign currency income (loss) | 108 | 1,232 | 215 | (255) | |
Gain (loss) on sale or disposal of property, plant & equipment | 3 | (20) | 3 | (20) | |
(Loss) gain on foreign currency exchange contracts | (645) | 0 | (994) | (32) | |
Bankruptcy claim settlement | 0 | 5,779 | 0 | 5,779 | |
Gain (loss) on sale of carbon credits | [1] | 352 | (307) | 352 | (307) |
Miscellaneous income (expense), net | 742 | 299 | 1,086 | (1,397) | |
Total | $ 7,138 | $ 11,389 | $ 12,713 | $ 11,764 | |
[1] | Loss in 2014 reflects surrender of carbon credit units. |
CONSOLIDATING FINANCIAL STATE71
CONSOLIDATING FINANCIAL STATEMENTS - Narrative (Details) - Jun. 30, 2015 - USD ($) | Total |
Senior Exchangeable Notes due August 2015 at a fixed interest rate of 4.50% [Member] | |
Debt Instrument [Line Items] | |
Issuance date | August 2,009 |
Face amount | $ 172,500,000 |
Stated interest rate | 4.50% |
Maturity date | August 2,015 |
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | |
Debt Instrument [Line Items] | |
Issuance date | March 2,012 |
Face amount | $ 325,000,000 |
Stated interest rate | 3.75% |
Maturity date | 2,022 |
CONSOLIDATING FINANCIAL STATE72
CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Statements of (Loss) Income and Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||||
SALES | $ 115,801 | $ 163,145 | $ 256,106 | $ 306,332 | |
Cost of sales | 103,689 | 123,096 | 210,923 | 238,995 | |
Selling and general expenses | 12,727 | 13,861 | 23,626 | 27,098 | |
Other operating expense (income), net | (7,138) | (11,389) | (12,713) | (11,764) | |
Costs and Expenses, Total | 109,278 | 125,568 | 221,836 | 254,329 | |
OPERATING INCOME | 6,523 | 37,577 | 34,270 | 52,003 | |
Interest expense | (8,483) | (15,612) | (17,027) | (26,286) | |
Interest and miscellaneous income (expense), net | (1,196) | (4,385) | (2,691) | (5,397) | |
Equity in (loss) income from subsidiaries | 0 | 0 | 0 | 0 | |
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (3,156) | 17,580 | 14,552 | 20,320 | |
Income tax (expense) benefit | 296 | (13,556) | 768 | (5,961) | |
(LOSS) INCOME FROM CONTINUING OPERATIONS | (2,860) | 4,024 | 15,320 | 14,359 | |
Income from discontinued operations, net | 0 | 12,084 | 0 | 43,092 | |
NET (LOSS) INCOME | (2,860) | 16,108 | 15,320 | 57,451 | $ 97,846 |
Less: Net loss attributable to noncontrolling interest | (1,324) | (245) | (891) | (328) | |
NET (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | (1,536) | 16,353 | 16,211 | 57,779 | |
Foreign currency translation adjustment, net of income tax expense of $732, $0, $1,074 and $0 | (25,395) | 3,517 | (39,717) | 21,320 | (15,847) |
New Zealand joint venture cash flow hedges | (2,917) | (920) | (3,863) | 791 | $ (1,855) |
Amortization of pension and postretirement plans, net of income tax | 743 | 58,873 | 1,524 | 60,970 | |
Total other comprehensive (loss) income | (27,569) | 61,470 | (42,056) | 83,081 | |
COMPREHENSIVE (LOSS) INCOME | (30,429) | 77,578 | (26,736) | 140,532 | |
Less: Comprehensive (loss) income attributable to noncontrolling interest | (9,731) | 297 | (13,522) | 5,722 | |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | (20,698) | 77,281 | (13,214) | 134,810 | |
Rayonier Inc. (Parent Guarantor) [Member] | |||||
Income Statement [Abstract] | |||||
SALES | 0 | 0 | 0 | 0 | |
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 | (3,169) | (3,196) | (6,337) | (6,389) | |
Interest and miscellaneous income (expense), net | 1,871 | 2,733 | 3,807 | 5,431 | |
Equity in (loss) income from subsidiaries | (238) | 16,814 | 18,741 | 58,737 | |
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (1,536) | 16,351 | 16,211 | 57,779 | |
Income tax (expense) benefit | 0 | 0 | 0 | 0 | |
(LOSS) INCOME FROM CONTINUING OPERATIONS | 16,351 | 57,779 | |||
Income from discontinued operations, net | 0 | 0 | |||
NET (LOSS) INCOME | (1,536) | 16,351 | 16,211 | 57,779 | |
Less: Net loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
NET (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | (1,536) | 16,351 | 16,211 | 57,779 | |
Foreign currency translation adjustment, net of income tax expense of $732, $0, $1,074 and $0 | (18,008) | 2,653 | (28,438) | 15,547 | |
New Zealand joint venture cash flow hedges | (1,896) | (598) | (2,511) | 514 | |
Amortization of pension and postretirement plans, net of income tax | 743 | 58,873 | 1,524 | 60,970 | |
Total other comprehensive (loss) income | (19,161) | 60,928 | (29,425) | 77,031 | |
COMPREHENSIVE (LOSS) INCOME | (20,697) | 77,279 | (13,214) | 134,810 | |
Less: Comprehensive (loss) income attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | (20,697) | 77,279 | (13,214) | 134,810 | |
Senior Exchangeable Notes due August 2015 at a fixed interest rate of 4.50% [Member] | ROC (Subsidiary Guarantor) [Member] | |||||
Income Statement [Abstract] | |||||
SALES | 0 | 0 | 0 | 0 | |
Cost of sales | 0 | 0 | 0 | 0 | |
Selling and general expenses | 6,330 | 2,394 | 11,279 | 4,544 | |
Other operating expense (income), net | (461) | 1,573 | (461) | 3,948 | |
Costs and Expenses, Total | 5,869 | 3,967 | 10,818 | 8,492 | |
OPERATING INCOME | (5,869) | (3,967) | (10,818) | (8,492) | |
Interest expense | (131) | (225) | (223) | (468) | |
Interest and miscellaneous income (expense), net | 817 | (3,003) | 1,654 | (2,189) | |
Equity in (loss) income from subsidiaries | 4,966 | 23,549 | 28,149 | 70,049 | |
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (217) | 16,354 | 18,762 | 58,900 | |
Income tax (expense) benefit | (21) | 460 | (21) | (163) | |
(LOSS) INCOME FROM CONTINUING OPERATIONS | 16,814 | 58,737 | |||
Income from discontinued operations, net | 0 | 0 | |||
NET (LOSS) INCOME | (238) | 16,814 | 18,741 | 58,737 | |
Less: Net loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
NET (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | (238) | 16,814 | 18,741 | 58,737 | |
Foreign currency translation adjustment, net of income tax expense of $732, $0, $1,074 and $0 | (18,008) | 2,653 | (28,438) | 15,547 | |
New Zealand joint venture cash flow hedges | (1,896) | (598) | (2,511) | 514 | |
Amortization of pension and postretirement plans, net of income tax | 743 | 58,873 | 1,524 | 60,970 | |
Total other comprehensive (loss) income | (19,161) | 60,928 | (29,425) | 77,031 | |
COMPREHENSIVE (LOSS) INCOME | (19,399) | 77,742 | (10,684) | 135,768 | |
Less: Comprehensive (loss) income attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | (19,399) | 77,742 | (10,684) | 135,768 | |
Senior Exchangeable Notes due August 2015 at a fixed interest rate of 4.50% [Member] | Rayonier TRS Holdings Inc. (Issuer) [Member] | |||||
Income Statement [Abstract] | |||||
SALES | 0 | 0 | 0 | 0 | |
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 | (2,409) | (10,982) | (4,841) | (17,672) | |
Interest and miscellaneous income (expense), net | (137) | (1,098) | (281) | (2,145) | |
Equity in (loss) income from subsidiaries | 2,796 | (54,081) | 4,223 | (22,951) | |
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 250 | (66,161) | (899) | (42,768) | |
Income tax (expense) benefit | 948 | 4,409 | 1,908 | 7,233 | |
(LOSS) INCOME FROM CONTINUING OPERATIONS | (61,752) | (35,535) | |||
Income from discontinued operations, net | 0 | 0 | |||
NET (LOSS) INCOME | 1,198 | (61,752) | 1,009 | (35,535) | |
Less: Net loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
NET (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | 1,198 | (61,752) | 1,009 | (35,535) | |
Foreign currency translation adjustment, net of income tax expense of $732, $0, $1,074 and $0 | (74) | 513 | (926) | 1,279 | |
New Zealand joint venture cash flow hedges | (1,896) | (598) | (2,511) | 514 | |
Amortization of pension and postretirement plans, net of income tax | (5) | 92,714 | 15 | 94,334 | |
Total other comprehensive (loss) income | (1,975) | 92,629 | (3,422) | 96,127 | |
COMPREHENSIVE (LOSS) INCOME | (777) | 30,877 | (2,413) | 60,592 | |
Less: Comprehensive (loss) income attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | (777) | 30,877 | (2,413) | 60,592 | |
Senior Exchangeable Notes due August 2015 at a fixed interest rate of 4.50% [Member] | Non-guarantors [Member] | |||||
Income Statement [Abstract] | |||||
SALES | 115,801 | 163,145 | 256,106 | 306,332 | |
Cost of sales | 103,689 | 123,096 | 210,923 | 238,995 | |
Selling and general expenses | 6,397 | 11,467 | 12,347 | 22,554 | |
Other operating expense (income), net | (6,677) | (12,962) | (12,252) | (15,712) | |
Costs and Expenses, Total | 103,409 | 121,601 | 211,018 | 245,837 | |
OPERATING INCOME | 12,392 | 41,544 | 45,088 | 60,495 | |
Interest expense | (2,774) | (1,209) | (5,626) | (1,757) | |
Interest and miscellaneous income (expense), net | (3,747) | (3,017) | (7,871) | (6,494) | |
Equity in (loss) income from subsidiaries | 0 | 0 | 0 | 0 | |
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 5,871 | 37,318 | 31,591 | 52,244 | |
Income tax (expense) benefit | (631) | (18,425) | (1,119) | (13,031) | |
(LOSS) INCOME FROM CONTINUING OPERATIONS | 18,893 | 39,213 | |||
Income from discontinued operations, net | 12,084 | 43,092 | |||
NET (LOSS) INCOME | 5,240 | 30,977 | 30,472 | 82,305 | |
Less: Net loss attributable to noncontrolling interest | (1,324) | (245) | (891) | (328) | |
NET (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | 6,564 | 31,222 | 31,363 | 82,633 | |
Foreign currency translation adjustment, net of income tax expense of $732, $0, $1,074 and $0 | (25,395) | 3,517 | (39,718) | 21,312 | |
New Zealand joint venture cash flow hedges | (2,917) | (920) | (3,863) | 791 | |
Amortization of pension and postretirement plans, net of income tax | (5) | 92,714 | 15 | 94,334 | |
Total other comprehensive (loss) income | (28,317) | 95,311 | (43,566) | 116,437 | |
COMPREHENSIVE (LOSS) INCOME | (23,077) | 126,288 | (13,094) | 198,742 | |
Less: Comprehensive (loss) income attributable to noncontrolling interest | (9,730) | 297 | (13,522) | 5,722 | |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | (13,347) | 125,991 | 428 | 193,020 | |
Senior Exchangeable Notes due August 2015 at a fixed interest rate of 4.50% [Member] | Consolidation Adjustments [Member] | |||||
Income Statement [Abstract] | |||||
SALES | 0 | 0 | 0 | 0 | |
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 (loss) income from subsidiaries | (7,524) | 13,718 | (51,113) | (105,835) | |
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (7,524) | 13,718 | (51,113) | (105,835) | |
Income tax (expense) benefit | 0 | 0 | 0 | 0 | |
(LOSS) INCOME FROM CONTINUING OPERATIONS | 13,718 | (105,835) | |||
Income from discontinued operations, net | 0 | 0 | |||
NET (LOSS) INCOME | (7,524) | 13,718 | (51,113) | (105,835) | |
Less: Net loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
NET (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | (7,524) | 13,718 | (51,113) | (105,835) | |
Foreign currency translation adjustment, net of income tax expense of $732, $0, $1,074 and $0 | 36,090 | (5,819) | 57,803 | (32,365) | |
New Zealand joint venture cash flow hedges | 5,688 | 1,794 | 7,533 | (1,542) | |
Amortization of pension and postretirement plans, net of income tax | (733) | (244,301) | (1,554) | (249,638) | |
Total other comprehensive (loss) income | 41,045 | (248,326) | 63,782 | (283,545) | |
COMPREHENSIVE (LOSS) INCOME | 33,521 | (234,608) | 12,669 | (389,380) | |
Less: Comprehensive (loss) income attributable to noncontrolling interest | (1) | 0 | 0 | 0 | |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | 33,522 | (234,608) | 12,669 | (389,380) | |
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | ROC (Subsidiary Guarantor) [Member] | |||||
Income Statement [Abstract] | |||||
SALES | 0 | 0 | 0 | 0 | |
Cost of sales | 0 | 0 | 0 | 0 | |
Selling and general expenses | 6,330 | 2,394 | 11,279 | 4,544 | |
Other operating expense (income), net | (461) | 1,573 | (461) | 3,948 | |
Costs and Expenses, Total | 5,869 | 3,967 | 10,818 | 8,492 | |
OPERATING INCOME | (5,869) | (3,967) | (10,818) | (8,492) | |
Interest expense | (2,540) | (11,207) | (5,064) | (18,140) | |
Interest and miscellaneous income (expense), net | 680 | (4,101) | 1,373 | (4,334) | |
Equity in (loss) income from subsidiaries | 6,564 | 31,220 | 31,363 | 82,633 | |
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (1,165) | 11,945 | 16,854 | 51,667 | |
Income tax (expense) benefit | 927 | 4,869 | 1,887 | 7,070 | |
(LOSS) INCOME FROM CONTINUING OPERATIONS | 16,814 | 58,737 | |||
Income from discontinued operations, net | 0 | 0 | |||
NET (LOSS) INCOME | (238) | 16,814 | 18,741 | 58,737 | |
Less: Net loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
NET (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | (238) | 16,814 | 18,741 | 58,737 | |
Foreign currency translation adjustment, net of income tax expense of $732, $0, $1,074 and $0 | (18,008) | 2,655 | (28,438) | 15,547 | |
New Zealand joint venture cash flow hedges | (1,896) | (598) | (2,511) | 514 | |
Amortization of pension and postretirement plans, net of income tax | 743 | 58,873 | 1,524 | 60,970 | |
Total other comprehensive (loss) income | (19,161) | 60,930 | (29,425) | 77,031 | |
COMPREHENSIVE (LOSS) INCOME | (19,399) | 77,744 | (10,684) | 135,768 | |
Less: Comprehensive (loss) income attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | (19,399) | 77,744 | (10,684) | 135,768 | |
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | Non-guarantors [Member] | |||||
Income Statement [Abstract] | |||||
SALES | 115,801 | 163,145 | 256,106 | 306,332 | |
Cost of sales | 103,689 | 123,096 | 210,923 | 238,995 | |
Selling and general expenses | 6,397 | 11,467 | 12,347 | 22,554 | |
Other operating expense (income), net | (6,677) | (12,962) | (12,252) | (15,712) | |
Costs and Expenses, Total | 103,409 | 121,601 | 211,018 | 245,837 | |
OPERATING INCOME | 12,392 | 41,544 | 45,088 | 60,495 | |
Interest expense | (2,774) | (1,209) | (5,626) | (1,757) | |
Interest and miscellaneous income (expense), net | (3,747) | (3,017) | (7,871) | (6,494) | |
Equity in (loss) income from subsidiaries | 0 | 0 | 0 | 0 | |
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 5,871 | 37,318 | 31,591 | 52,244 | |
Income tax (expense) benefit | (631) | (18,425) | (1,119) | (13,031) | |
(LOSS) INCOME FROM CONTINUING OPERATIONS | 18,893 | 39,213 | |||
Income from discontinued operations, net | 12,084 | 43,092 | |||
NET (LOSS) INCOME | 5,240 | 30,977 | 30,472 | 82,305 | |
Less: Net loss attributable to noncontrolling interest | (1,324) | (245) | (891) | (328) | |
NET (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | 6,564 | 31,222 | 31,363 | 82,633 | |
Foreign currency translation adjustment, net of income tax expense of $732, $0, $1,074 and $0 | (25,395) | 3,517 | (39,718) | 21,312 | |
New Zealand joint venture cash flow hedges | (2,917) | (920) | (3,863) | 791 | |
Amortization of pension and postretirement plans, net of income tax | (5) | 92,714 | 15 | 94,334 | |
Total other comprehensive (loss) income | (28,317) | 95,311 | (43,566) | 116,437 | |
COMPREHENSIVE (LOSS) INCOME | (23,077) | 126,288 | (13,094) | 198,742 | |
Less: Comprehensive (loss) income attributable to noncontrolling interest | (9,730) | 297 | (13,522) | 5,722 | |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | (13,347) | 125,991 | 428 | 193,020 | |
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | Consolidation Adjustments [Member] | |||||
Income Statement [Abstract] | |||||
SALES | 0 | 0 | 0 | 0 | |
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 (loss) income from subsidiaries | (6,326) | (48,034) | (50,104) | (141,370) | |
(LOSS) INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (6,326) | (48,034) | (50,104) | (141,370) | |
Income tax (expense) benefit | 0 | 0 | 0 | 0 | |
(LOSS) INCOME FROM CONTINUING OPERATIONS | (48,034) | (141,370) | |||
Income from discontinued operations, net | 0 | 0 | |||
NET (LOSS) INCOME | (6,326) | (48,034) | (50,104) | (141,370) | |
Less: Net loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
NET (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | (6,326) | (48,034) | (50,104) | (141,370) | |
Foreign currency translation adjustment, net of income tax expense of $732, $0, $1,074 and $0 | 36,016 | (5,308) | 56,877 | (31,086) | |
New Zealand joint venture cash flow hedges | 3,792 | 1,196 | 5,022 | (1,028) | |
Amortization of pension and postretirement plans, net of income tax | (738) | (151,587) | (1,539) | (155,304) | |
Total other comprehensive (loss) income | 39,070 | (155,699) | 60,360 | (187,418) | |
COMPREHENSIVE (LOSS) INCOME | 32,744 | (203,733) | 10,256 | (328,788) | |
Less: Comprehensive (loss) income attributable to noncontrolling interest | (1) | 0 | 0 | 0 | |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | $ 32,745 | $ (203,733) | $ 10,256 | $ (328,788) |
CONSOLIDATING FINANCIAL STATE73
CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
CURRENT ASSETS | ||||
Cash and cash equivalents | $ 91,632 | $ 161,558 | $ 222,061 | $ 199,644 |
Accounts receivable, less allowance for doubtful accounts | 19,444 | 24,018 | ||
Inventory | 13,362 | 8,383 | ||
Prepaid and other current assets | 21,222 | 19,745 | ||
Total current assets | 145,660 | 213,704 | ||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 2,086,729 | 2,088,501 | ||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 69,726 | 77,433 | ||
NET PROPERTY, PLANT AND EQUIPMENT | 6,434 | 6,706 | ||
INVESTMENT IN SUBSIDIARIES | 0 | 0 | ||
INTERCOMPANY NOTES RECEIVABLE | 0 | 0 | ||
OTHER ASSETS | 57,772 | 66,771 | ||
TOTAL ASSETS | 2,366,321 | 2,453,115 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 22,396 | 20,211 | ||
Current maturities of long-term debt | 30,000 | 129,706 | ||
Accrued taxes | 15,811 | 11,405 | ||
Accrued payroll and benefits | 4,596 | 6,390 | ||
Accrued interest | 8,043 | 8,433 | ||
Other current liabilities | 31,614 | 25,857 | ||
Total current liabilities | 112,460 | 202,002 | ||
LONG-TERM DEBT | 722,353 | 621,849 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 33,396 | 33,477 | ||
OTHER NON-CURRENT LIABILITIES | 20,840 | 20,636 | ||
INTERCOMPANY PAYABLE | 0 | 0 | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,404,113 | 1,488,470 | ||
Noncontrolling interest | 73,159 | 86,681 | ||
TOTAL SHAREHOLDERS’ EQUITY | 1,477,272 | 1,575,151 | 1,755,243 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,366,321 | 2,453,115 | ||
Rayonier Inc. (Parent Guarantor) [Member] | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 5,366 | 102,218 | 39,181 | 130,181 |
Accounts receivable, less allowance for doubtful accounts | 0 | 0 | ||
Inventory | 0 | 0 | ||
Prepaid and other current assets | 0 | 0 | ||
Total current assets | 5,366 | 102,218 | ||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 0 | 0 | ||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 0 | 0 | ||
NET PROPERTY, PLANT AND EQUIPMENT | 0 | 0 | ||
INVESTMENT IN SUBSIDIARIES | 1,516,408 | 1,463,303 | ||
INTERCOMPANY NOTES RECEIVABLE | 252,815 | 248,233 | ||
OTHER ASSETS | 2,570 | 2,763 | ||
TOTAL ASSETS | 1,777,159 | 1,816,517 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 0 | 0 | ||
Current maturities of long-term debt | 0 | 0 | ||
Accrued taxes | 0 | 0 | ||
Accrued payroll and benefits | 0 | 0 | ||
Accrued interest | 3,046 | 3,047 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | 3,046 | 3,047 | ||
LONG-TERM DEBT | 370,000 | 325,000 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 0 | 0 | ||
OTHER NON-CURRENT LIABILITIES | 0 | 0 | ||
INTERCOMPANY PAYABLE | 0 | 0 | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,404,113 | 1,488,470 | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL SHAREHOLDERS’ EQUITY | 1,404,113 | 1,488,470 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 1,777,159 | 1,816,517 | ||
Senior Exchangeable Notes due August 2015 at a fixed interest rate of 4.50% [Member] | ROC (Subsidiary Guarantor) [Member] | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 94 | 11 | 1,096 | 304 |
Accounts receivable, less allowance for doubtful accounts | 0 | 0 | ||
Inventory | 0 | 0 | ||
Prepaid and other current assets | 1,855 | 2,003 | ||
Total current assets | 1,949 | 2,014 | ||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 0 | 0 | ||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 0 | 0 | ||
NET PROPERTY, PLANT AND EQUIPMENT | 480 | 433 | ||
INVESTMENT IN SUBSIDIARIES | 2,182,721 | 1,923,185 | ||
INTERCOMPANY NOTES RECEIVABLE | 0 | 0 | ||
OTHER ASSETS | 16,476 | 16,610 | ||
TOTAL ASSETS | 2,201,626 | 1,942,242 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 3,434 | 2,687 | ||
Current maturities of long-term debt | 0 | 0 | ||
Accrued taxes | 14 | 11 | ||
Accrued payroll and benefits | 2,476 | 3,253 | ||
Accrued interest | (12) | (3) | ||
Other current liabilities | 2,420 | 928 | ||
Total current liabilities | 8,332 | 6,876 | ||
LONG-TERM DEBT | 0 | 0 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 34,081 | 34,161 | ||
OTHER NON-CURRENT LIABILITIES | 6,615 | 6,436 | ||
INTERCOMPANY PAYABLE | 636,190 | 431,466 | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,516,408 | 1,463,303 | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL SHAREHOLDERS’ EQUITY | 1,516,408 | 1,463,303 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,201,626 | 1,942,242 | ||
Senior Exchangeable Notes due August 2015 at a fixed interest rate of 4.50% [Member] | Subsidiary Issuer [Member] | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 45,847 | 8,094 | 66,866 | 10,719 |
Accounts receivable, less allowance for doubtful accounts | 91 | 1,409 | ||
Inventory | 0 | 0 | ||
Prepaid and other current assets | 3,008 | 6 | ||
Total current assets | 48,946 | 9,509 | ||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 0 | 0 | ||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 0 | 0 | ||
NET PROPERTY, PLANT AND EQUIPMENT | 0 | 0 | ||
INVESTMENT IN SUBSIDIARIES | 843,077 | 640,678 | ||
INTERCOMPANY NOTES RECEIVABLE | 21,928 | 21,500 | ||
OTHER ASSETS | 1,325 | 1,759 | ||
TOTAL ASSETS | 915,276 | 673,446 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 83 | 123 | ||
Current maturities of long-term debt | 30,000 | 129,706 | ||
Accrued taxes | 0 | 0 | ||
Accrued payroll and benefits | 0 | 0 | ||
Accrued interest | 2,505 | 2,520 | ||
Other current liabilities | 9,570 | 145 | ||
Total current liabilities | 42,158 | 132,494 | ||
LONG-TERM DEBT | 115,972 | 31,000 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 0 | 0 | ||
OTHER NON-CURRENT LIABILITIES | 0 | 0 | ||
INTERCOMPANY PAYABLE | 0 | 0 | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 757,146 | 509,952 | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL SHAREHOLDERS’ EQUITY | 757,146 | 509,952 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 915,276 | 673,446 | ||
Senior Exchangeable Notes due August 2015 at a fixed interest rate of 4.50% [Member] | Non-guarantors [Member] | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 40,325 | 51,235 | 114,918 | 58,440 |
Accounts receivable, less allowance for doubtful accounts | 19,353 | 22,609 | ||
Inventory | 13,362 | 8,383 | ||
Prepaid and other current assets | 16,359 | 17,736 | ||
Total current assets | 89,399 | 99,963 | ||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 2,086,729 | 2,088,501 | ||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 69,726 | 77,433 | ||
NET PROPERTY, PLANT AND EQUIPMENT | 5,954 | 6,273 | ||
INVESTMENT IN SUBSIDIARIES | 0 | 0 | ||
INTERCOMPANY NOTES RECEIVABLE | 0 | 0 | ||
OTHER ASSETS | 37,401 | 45,639 | ||
TOTAL ASSETS | 2,289,209 | 2,317,809 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 18,879 | 17,401 | ||
Current maturities of long-term debt | 0 | 0 | ||
Accrued taxes | 15,797 | 11,394 | ||
Accrued payroll and benefits | 2,120 | 3,137 | ||
Accrued interest | 35,499 | 31,281 | ||
Other current liabilities | 19,624 | 24,784 | ||
Total current liabilities | 91,919 | 87,997 | ||
LONG-TERM DEBT | 236,381 | 265,849 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | (685) | (684) | ||
OTHER NON-CURRENT LIABILITIES | 14,225 | 14,200 | ||
INTERCOMPANY PAYABLE | (254,315) | (153,754) | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 2,128,525 | 2,017,520 | ||
Noncontrolling interest | 73,159 | 86,681 | ||
TOTAL SHAREHOLDERS’ EQUITY | 2,201,684 | 2,104,201 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,289,209 | 2,317,809 | ||
Senior Exchangeable Notes due August 2015 at a fixed interest rate of 4.50% [Member] | Consolidation Adjustments [Member] | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, less allowance for doubtful accounts | 0 | 0 | ||
Inventory | 0 | 0 | ||
Prepaid and 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 COSTS | 0 | 0 | ||
NET PROPERTY, PLANT AND EQUIPMENT | 0 | 0 | ||
INVESTMENT IN SUBSIDIARIES | (4,542,206) | (4,027,166) | ||
INTERCOMPANY NOTES RECEIVABLE | (274,743) | (269,733) | ||
OTHER ASSETS | 0 | 0 | ||
TOTAL ASSETS | (4,816,949) | (4,296,899) | ||
CURRENT LIABILITIES | ||||
Accounts payable | 0 | 0 | ||
Current maturities of long-term debt | 0 | 0 | ||
Accrued taxes | 0 | 0 | ||
Accrued payroll and benefits | 0 | 0 | ||
Accrued interest | (32,995) | (28,412) | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | (32,995) | (28,412) | ||
LONG-TERM DEBT | 0 | 0 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 0 | 0 | ||
OTHER NON-CURRENT LIABILITIES | 0 | 0 | ||
INTERCOMPANY PAYABLE | (381,875) | (277,712) | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | (4,402,079) | (3,990,775) | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL SHAREHOLDERS’ EQUITY | (4,402,079) | (3,990,775) | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | (4,816,949) | (4,296,899) | ||
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | ROC (Subsidiary Guarantor) [Member] | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 45,941 | 8,105 | 67,962 | 11,023 |
Accounts receivable, less allowance for doubtful accounts | 91 | 1,409 | ||
Inventory | 0 | 0 | ||
Prepaid and other current assets | 4,863 | 2,009 | ||
Total current assets | 50,895 | 11,523 | ||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 0 | 0 | ||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 0 | 0 | ||
NET PROPERTY, PLANT AND EQUIPMENT | 480 | 433 | ||
INVESTMENT IN SUBSIDIARIES | 2,268,652 | 2,053,911 | ||
INTERCOMPANY NOTES RECEIVABLE | 21,928 | 21,500 | ||
OTHER ASSETS | 17,801 | 18,369 | ||
TOTAL ASSETS | 2,359,756 | 2,105,736 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 3,517 | 2,810 | ||
Current maturities of long-term debt | 30,000 | 129,706 | ||
Accrued taxes | 14 | 11 | ||
Accrued payroll and benefits | 2,476 | 3,253 | ||
Accrued interest | 2,493 | 2,517 | ||
Other current liabilities | 11,990 | 1,073 | ||
Total current liabilities | 50,490 | 139,370 | ||
LONG-TERM DEBT | 115,972 | 31,000 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 34,081 | 34,161 | ||
OTHER NON-CURRENT LIABILITIES | 6,615 | 6,436 | ||
INTERCOMPANY PAYABLE | 636,190 | 431,466 | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,516,408 | 1,463,303 | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL SHAREHOLDERS’ EQUITY | 1,516,408 | 1,463,303 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,359,756 | 2,105,736 | ||
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | Non-guarantors [Member] | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 40,325 | 51,235 | 114,918 | 58,440 |
Accounts receivable, less allowance for doubtful accounts | 19,353 | 22,609 | ||
Inventory | 13,362 | 8,383 | ||
Prepaid and other current assets | 16,359 | 17,736 | ||
Total current assets | 89,399 | 99,963 | ||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 2,086,729 | 2,088,501 | ||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 69,726 | 77,433 | ||
NET PROPERTY, PLANT AND EQUIPMENT | 5,954 | 6,273 | ||
INVESTMENT IN SUBSIDIARIES | 0 | 0 | ||
INTERCOMPANY NOTES RECEIVABLE | 0 | 0 | ||
OTHER ASSETS | 37,401 | 45,639 | ||
TOTAL ASSETS | 2,289,209 | 2,317,809 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 18,879 | 17,401 | ||
Current maturities of long-term debt | 0 | 0 | ||
Accrued taxes | 15,797 | 11,394 | ||
Accrued payroll and benefits | 2,120 | 3,137 | ||
Accrued interest | 35,499 | 31,281 | ||
Other current liabilities | 19,624 | 24,784 | ||
Total current liabilities | 91,919 | 87,997 | ||
LONG-TERM DEBT | 236,381 | 265,849 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | (685) | (684) | ||
OTHER NON-CURRENT LIABILITIES | 14,225 | 14,200 | ||
INTERCOMPANY PAYABLE | (254,315) | (153,754) | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 2,128,525 | 2,017,520 | ||
Noncontrolling interest | 73,159 | 86,681 | ||
TOTAL SHAREHOLDERS’ EQUITY | 2,201,684 | 2,104,201 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,289,209 | 2,317,809 | ||
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | Consolidation Adjustments [Member] | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable, less allowance for doubtful accounts | 0 | 0 | ||
Inventory | 0 | 0 | ||
Prepaid and 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 COSTS | 0 | 0 | ||
NET PROPERTY, PLANT AND EQUIPMENT | 0 | 0 | ||
INVESTMENT IN SUBSIDIARIES | (3,785,060) | (3,517,214) | ||
INTERCOMPANY NOTES RECEIVABLE | (274,743) | (269,733) | ||
OTHER ASSETS | 0 | 0 | ||
TOTAL ASSETS | (4,059,803) | (3,786,947) | ||
CURRENT LIABILITIES | ||||
Accounts payable | 0 | 0 | ||
Current maturities of long-term debt | 0 | 0 | ||
Accrued taxes | 0 | 0 | ||
Accrued payroll and benefits | 0 | 0 | ||
Accrued interest | (32,995) | (28,412) | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | (32,995) | (28,412) | ||
LONG-TERM DEBT | 0 | 0 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 0 | 0 | ||
OTHER NON-CURRENT LIABILITIES | 0 | 0 | ||
INTERCOMPANY PAYABLE | (381,875) | (277,712) | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | (3,644,933) | (3,480,823) | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL SHAREHOLDERS’ EQUITY | (3,644,933) | (3,480,823) | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ (4,059,803) | $ (3,786,947) |
CONSOLIDATING FINANCIAL STATE74
CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Thousands | Jun. 27, 2014 | Jun. 30, 2015 | Jun. 30, 2014 |
Statement of Cash Flows [Abstract] | |||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | $ 85,883 | $ 229,144 | |
INVESTING ACTIVITIES | |||
Capital expenditures | (26,130) | (33,597) | |
Capital expenditures from discontinued operations | 0 | (47,050) | |
Real estate development costs | (578) | (2,595) | |
Purchase of timberlands | (88,414) | (74,817) | |
Change in restricted cash | 4,160 | 63,128 | |
Investment in Subsidiaries | 0 | 0 | |
Other | 3,689 | (478) | |
CASH USED FOR INVESTING ACTIVITIES | (107,273) | (95,409) | |
FINANCING ACTIVITIES | |||
Issuance of debt | 59,100 | 1,238,389 | |
Repayment of debt | (31,472) | (1,107,062) | |
Dividends paid | $ (63,200) | (63,421) | (124,628) |
Proceeds from the issuance of common shares | 718 | 3,347 | |
Repurchase of common shares | (9,057) | (1,834) | |
Debt issuance costs | 0 | (12,380) | |
Net cash disbursed upon spin-off of Performance Fibers business | 0 | (106,420) | |
Intercompany distributions | 0 | 0 | |
Other | 0 | (680) | |
CASH USED FOR FINANCING ACTIVITIES | (44,132) | (111,268) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (4,404) | (50) | |
CASH AND CASH EQUIVALENTS | |||
Change in cash and cash equivalents | (69,926) | 22,417 | |
Balance, beginning of year | 161,558 | 199,644 | |
Balance, end of period | 91,632 | 222,061 | |
Rayonier Inc. (Parent Guarantor) [Member] | |||
Statement of Cash Flows [Abstract] | |||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | (25,092) | 138,535 | |
INVESTING ACTIVITIES | |||
Capital expenditures | 0 | 0 | |
Capital expenditures from discontinued operations | 0 | ||
Real estate development costs | 0 | 0 | |
Purchase of timberlands | 0 | 0 | |
Change in restricted cash | 0 | 0 | |
Investment in Subsidiaries | 0 | 0 | |
Other | 0 | 0 | |
CASH USED FOR INVESTING ACTIVITIES | 0 | 0 | |
FINANCING ACTIVITIES | |||
Issuance of debt | 0 | 0 | |
Repayment of debt | 0 | 0 | |
Dividends paid | (63,421) | (124,628) | |
Proceeds from the issuance of common shares | 718 | 3,347 | |
Repurchase of common shares | (9,057) | (1,834) | |
Debt issuance costs | 0 | ||
Net cash disbursed upon spin-off of Performance Fibers business | (106,420) | ||
Intercompany distributions | 0 | 0 | |
Other | 0 | ||
CASH USED FOR FINANCING ACTIVITIES | (71,760) | (229,535) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 0 | 0 | |
CASH AND CASH EQUIVALENTS | |||
Change in cash and cash equivalents | (96,852) | (91,000) | |
Balance, beginning of year | 102,218 | 130,181 | |
Balance, end of period | 5,366 | 39,181 | |
Senior Exchangeable Notes due August 2015 at a fixed interest rate of 4.50% [Member] | ROC (Subsidiary Guarantor) [Member] | |||
Statement of Cash Flows [Abstract] | |||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | (13,561) | 150,518 | |
INVESTING ACTIVITIES | |||
Capital expenditures | (134) | (201) | |
Capital expenditures from discontinued operations | 0 | ||
Real estate development costs | 0 | 0 | |
Purchase of timberlands | 0 | 0 | |
Change in restricted cash | 0 | 0 | |
Investment in Subsidiaries | 0 | 0 | |
Other | 0 | 0 | |
CASH USED FOR INVESTING ACTIVITIES | (134) | (201) | |
FINANCING ACTIVITIES | |||
Issuance of debt | 0 | 0 | |
Repayment of debt | 0 | 0 | |
Dividends paid | 0 | 0 | |
Proceeds from the issuance of common shares | 0 | 0 | |
Repurchase of common shares | 0 | 0 | |
Debt issuance costs | 0 | ||
Net cash disbursed upon spin-off of Performance Fibers business | 0 | ||
Intercompany distributions | 13,778 | (149,525) | |
Other | 0 | ||
CASH USED FOR FINANCING ACTIVITIES | 13,778 | (149,525) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 0 | 0 | |
CASH AND CASH EQUIVALENTS | |||
Change in cash and cash equivalents | 83 | 792 | |
Balance, beginning of year | 11 | 304 | |
Balance, end of period | 94 | 1,096 | |
Senior Exchangeable Notes due August 2015 at a fixed interest rate of 4.50% [Member] | Subsidiary Issuer [Member] | |||
Statement of Cash Flows [Abstract] | |||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | 0 | 0 | |
INVESTING ACTIVITIES | |||
Capital expenditures | 0 | 0 | |
Capital expenditures from discontinued operations | 0 | ||
Real estate development costs | 0 | 0 | |
Purchase of timberlands | 0 | 0 | |
Change in restricted cash | 0 | 0 | |
Investment in Subsidiaries | 8,753 | (62,800) | |
Other | 0 | 0 | |
CASH USED FOR INVESTING ACTIVITIES | 8,753 | (62,800) | |
FINANCING ACTIVITIES | |||
Issuance of debt | 57,000 | 1,238,389 | |
Repayment of debt | (28,000) | (1,107,062) | |
Dividends paid | 0 | 0 | |
Proceeds from the issuance of common shares | 0 | 0 | |
Repurchase of common shares | 0 | 0 | |
Debt issuance costs | (12,380) | ||
Net cash disbursed upon spin-off of Performance Fibers business | 0 | ||
Intercompany distributions | 0 | 0 | |
Other | 0 | ||
CASH USED FOR FINANCING ACTIVITIES | 29,000 | 118,947 | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 0 | 0 | |
CASH AND CASH EQUIVALENTS | |||
Change in cash and cash equivalents | 37,753 | 56,147 | |
Balance, beginning of year | 8,094 | 10,719 | |
Balance, end of period | 45,847 | 66,866 | |
Senior Exchangeable Notes due August 2015 at a fixed interest rate of 4.50% [Member] | Non-guarantors [Member] | |||
Statement of Cash Flows [Abstract] | |||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | 110,401 | 87,098 | |
INVESTING ACTIVITIES | |||
Capital expenditures | (25,996) | (33,396) | |
Capital expenditures from discontinued operations | (47,050) | ||
Real estate development costs | (578) | (2,595) | |
Purchase of timberlands | (88,414) | (74,817) | |
Change in restricted cash | 4,160 | 63,128 | |
Investment in Subsidiaries | 0 | 0 | |
Other | 3,689 | (478) | |
CASH USED FOR INVESTING ACTIVITIES | (107,139) | (95,208) | |
FINANCING ACTIVITIES | |||
Issuance of debt | 2,100 | 0 | |
Repayment of debt | (3,472) | 0 | |
Dividends paid | 0 | 0 | |
Proceeds from the issuance of common shares | 0 | 0 | |
Repurchase of common shares | 0 | 0 | |
Debt issuance costs | 0 | ||
Net cash disbursed upon spin-off of Performance Fibers business | 0 | ||
Intercompany distributions | (8,396) | 65,318 | |
Other | (680) | ||
CASH USED FOR FINANCING ACTIVITIES | (9,768) | 64,638 | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (4,404) | (50) | |
CASH AND CASH EQUIVALENTS | |||
Change in cash and cash equivalents | (10,910) | 56,478 | |
Balance, beginning of year | 51,235 | 58,440 | |
Balance, end of period | 40,325 | 114,918 | |
Senior Exchangeable Notes due August 2015 at a fixed interest rate of 4.50% [Member] | Consolidation Adjustments [Member] | |||
Statement of Cash Flows [Abstract] | |||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | 14,135 | (147,007) | |
INVESTING ACTIVITIES | |||
Capital expenditures | 0 | 0 | |
Capital expenditures from discontinued operations | 0 | ||
Real estate development costs | 0 | 0 | |
Purchase of timberlands | 0 | 0 | |
Change in restricted cash | 0 | 0 | |
Investment in Subsidiaries | (8,753) | 62,800 | |
Other | 0 | 0 | |
CASH USED FOR INVESTING ACTIVITIES | (8,753) | 62,800 | |
FINANCING ACTIVITIES | |||
Issuance of debt | 0 | 0 | |
Repayment of debt | 0 | 0 | |
Dividends paid | 0 | 0 | |
Proceeds from the issuance of common shares | 0 | 0 | |
Repurchase of common shares | 0 | 0 | |
Debt issuance costs | 0 | ||
Net cash disbursed upon spin-off of Performance Fibers business | 0 | ||
Intercompany distributions | (5,382) | 84,207 | |
Other | 0 | ||
CASH USED FOR FINANCING ACTIVITIES | (5,382) | 84,207 | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 0 | 0 | |
CASH AND CASH EQUIVALENTS | |||
Change in cash and cash equivalents | 0 | 0 | |
Balance, beginning of year | 0 | 0 | |
Balance, end of period | 0 | 0 | |
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | ROC (Subsidiary Guarantor) [Member] | |||
Statement of Cash Flows [Abstract] | |||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | (13,561) | 150,518 | |
INVESTING ACTIVITIES | |||
Capital expenditures | (134) | (201) | |
Capital expenditures from discontinued operations | 0 | ||
Real estate development costs | 0 | 0 | |
Purchase of timberlands | 0 | 0 | |
Change in restricted cash | 0 | 0 | |
Investment in Subsidiaries | 8,753 | (62,800) | |
Other | 0 | 0 | |
CASH USED FOR INVESTING ACTIVITIES | 8,619 | (63,001) | |
FINANCING ACTIVITIES | |||
Issuance of debt | 57,000 | 1,238,389 | |
Repayment of debt | (28,000) | (1,107,062) | |
Dividends paid | 0 | 0 | |
Proceeds from the issuance of common shares | 0 | 0 | |
Repurchase of common shares | 0 | 0 | |
Debt issuance costs | (12,380) | ||
Net cash disbursed upon spin-off of Performance Fibers business | 0 | ||
Intercompany distributions | 13,778 | (149,525) | |
Other | 0 | ||
CASH USED FOR FINANCING ACTIVITIES | 42,778 | (30,578) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 0 | 0 | |
CASH AND CASH EQUIVALENTS | |||
Change in cash and cash equivalents | 37,836 | 56,939 | |
Balance, beginning of year | 8,105 | 11,023 | |
Balance, end of period | 45,941 | 67,962 | |
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | Non-guarantors [Member] | |||
Statement of Cash Flows [Abstract] | |||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | 110,401 | 87,098 | |
INVESTING ACTIVITIES | |||
Capital expenditures | (25,996) | (33,396) | |
Capital expenditures from discontinued operations | (47,050) | ||
Real estate development costs | (578) | (2,595) | |
Purchase of timberlands | (88,414) | (74,817) | |
Change in restricted cash | 4,160 | 63,128 | |
Investment in Subsidiaries | 0 | 0 | |
Other | 3,689 | (478) | |
CASH USED FOR INVESTING ACTIVITIES | (107,139) | (95,208) | |
FINANCING ACTIVITIES | |||
Issuance of debt | 2,100 | 0 | |
Repayment of debt | (3,472) | 0 | |
Dividends paid | 0 | 0 | |
Proceeds from the issuance of common shares | 0 | 0 | |
Repurchase of common shares | 0 | 0 | |
Debt issuance costs | 0 | ||
Net cash disbursed upon spin-off of Performance Fibers business | 0 | ||
Intercompany distributions | (8,396) | 65,318 | |
Other | (680) | ||
CASH USED FOR FINANCING ACTIVITIES | (9,768) | 64,638 | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (4,404) | (50) | |
CASH AND CASH EQUIVALENTS | |||
Change in cash and cash equivalents | (10,910) | 56,478 | |
Balance, beginning of year | 51,235 | 58,440 | |
Balance, end of period | 40,325 | 114,918 | |
Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | Consolidation Adjustments [Member] | |||
Statement of Cash Flows [Abstract] | |||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | 14,135 | (147,007) | |
INVESTING ACTIVITIES | |||
Capital expenditures | 0 | 0 | |
Capital expenditures from discontinued operations | 0 | ||
Real estate development costs | 0 | 0 | |
Purchase of timberlands | 0 | 0 | |
Change in restricted cash | 0 | 0 | |
Investment in Subsidiaries | (8,753) | 62,800 | |
Other | 0 | 0 | |
CASH USED FOR INVESTING ACTIVITIES | (8,753) | 62,800 | |
FINANCING ACTIVITIES | |||
Issuance of debt | 0 | 0 | |
Repayment of debt | 0 | 0 | |
Dividends paid | 0 | 0 | |
Proceeds from the issuance of common shares | 0 | 0 | |
Repurchase of common shares | 0 | 0 | |
Debt issuance costs | 0 | ||
Net cash disbursed upon spin-off of Performance Fibers business | 0 | ||
Intercompany distributions | (5,382) | 84,207 | |
Other | 0 | ||
CASH USED FOR FINANCING ACTIVITIES | (5,382) | 84,207 | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 0 | 0 | |
CASH AND CASH EQUIVALENTS | |||
Change in cash and cash equivalents | 0 | 0 | |
Balance, beginning of year | 0 | 0 | |
Balance, end of period | $ 0 | $ 0 |