Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 30, 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 | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 123,753,204 |
Consolidated Statements of (Los
Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||||
SALES | $ 151,657 | $ 149,829 | $ 407,764 | $ 456,161 | |
Costs and Expenses | |||||
Cost of sales | 116,044 | 118,088 | 326,966 | 357,083 | |
Selling and general expenses | 10,689 | 8,806 | 34,315 | 35,904 | |
Other operating income, net (Note 18) | (2,855) | (9,144) | (15,567) | (20,908) | |
Costs and Expenses, Total | 123,878 | 117,750 | 345,714 | 372,079 | |
OPERATING INCOME | 27,779 | 32,079 | 62,050 | 84,082 | |
Interest expense | (7,581) | (9,566) | (24,608) | (35,852) | |
Interest income and miscellaneous expense, net | (1,558) | (1,734) | (4,250) | (7,131) | |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 18,640 | 20,779 | 33,192 | 41,099 | |
Income tax benefit | 541 | 11,280 | 1,309 | 5,319 | |
INCOME FROM CONTINUING OPERATIONS | 19,181 | 32,059 | 34,501 | 46,418 | |
DISCONTINUED OPERATIONS, NET (Note 2) | |||||
Income from discontinued operations, net of income tax expense of $0, $0, $0 and $21,231 | 0 | 0 | 0 | 43,092 | |
NET INCOME | 19,181 | 32,059 | 34,501 | 89,510 | $ 97,846 |
Less: Net loss attributable to noncontrolling interest | (488) | (642) | (1,379) | (970) | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 19,669 | 32,701 | 35,880 | 90,480 | |
OTHER COMPREHENSIVE (LOSS) INCOME | |||||
Foreign currency translation adjustment, net of income tax expense of $429 $0, $1,581 and $0 | (13,370) | (37,877) | (53,087) | (16,426) | (15,847) |
Cash flow hedges, net of income tax benefit of $185, $1,170, $1,687 and $1,270 | (14,120) | (3,494) | (17,983) | (2,703) | $ (1,855) |
Amortization of pension and postretirement plans, net of income tax expense of $66, $150, $404 and $37,025 | 890 | 2,265 | 2,414 | 63,235 | |
Total other comprehensive (loss) income | (26,600) | (39,106) | (68,656) | 44,106 | |
COMPREHENSIVE (LOSS) INCOME | (7,419) | (7,047) | (34,155) | 133,616 | |
Less: Comprehensive loss attributable to noncontrolling interest | (5,363) | (12,426) | (18,884) | (6,573) | |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | $ (2,056) | $ 5,379 | $ (15,271) | $ 140,189 | |
BASIC EARNINGS PER SHARE ATTRIBUTABLE TO RAYONIER INC. | |||||
Continuing Operations (in dollars per share) | $ 0.16 | $ 0.26 | $ 0.28 | $ 0.38 | |
Discontinued Operations (in dollars per share) | 0 | 0 | 0 | 0.34 | |
Net Income, Basic (in dollars per share) | 0.16 | 0.26 | 0.28 | 0.72 | |
DILUTED EARNINGS PER SHARE ATTRIBUTABLE TO RAYONIER INC. | |||||
Continuing Operations (in dollars per share) | 0.16 | 0.25 | 0.28 | 0.36 | |
Discontinued Operations, (in dollars per share) | 0 | 0 | 0 | 0.33 | |
Net Income, Diluted (in dollars per share) | 0.16 | 0.25 | 0.28 | 0.69 | |
Dividends declared (in dollars per share) | $ 0.25 | $ 0.80 | $ 0.75 | $ 1.78 | $ 2.03 |
Consolidated Statements of (Lo3
Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Income from discontinued operations, income tax expense | $ 0 | $ 0 | $ 21,231 | |
Foreign currency translation adjustment, income tax benefit | 429 | 0 | $ 1,581 | 0 |
Cash flow hedges, income tax benefit (expense) | 185 | 1,170 | 1,687 | 1,270 |
Amortization of pension and postretirement plans, income tax expense | $ 66 | $ 150 | $ 404 | $ 37,025 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 65,755 | $ 161,558 |
Accounts receivable, less allowance for doubtful accounts of $42 and $42 | 19,296 | 24,018 |
Inventory (Note 15) | 14,506 | 8,383 |
Prepaid and other current assets | 24,066 | 19,745 |
Total current assets | 123,623 | 213,704 |
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 2,038,032 | 2,088,501 |
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 67,274 | 77,433 |
PROPERTY, PLANT AND EQUIPMENT | ||
Land | 1,833 | 1,833 |
Buildings | 8,918 | 8,961 |
Machinery and equipment | 3,531 | 3,503 |
Construction in progress | 660 | 579 |
Total property, plant and equipment, gross | 14,942 | 14,876 |
Less — accumulated depreciation | (8,785) | (8,170) |
Total property, plant and equipment, net | 6,157 | 6,706 |
OTHER ASSETS | 79,374 | 66,771 |
TOTAL ASSETS | 2,314,460 | 2,453,115 |
CURRENT LIABILITIES | ||
Accounts payable | 19,301 | 20,211 |
Current maturities of long-term debt | 0 | 129,706 |
Accrued taxes | 17,238 | 11,405 |
Accrued payroll and benefits | 5,673 | 6,390 |
Accrued interest | 8,943 | 8,433 |
Other current liabilities | 30,200 | 25,857 |
Total current liabilities | 81,355 | 202,002 |
LONG-TERM DEBT | 791,233 | 621,849 |
PENSION AND OTHER POSTRETIREMENT BENEFITS (Note 14) | 33,599 | 33,477 |
OTHER NON-CURRENT LIABILITIES | $ 32,056 | $ 20,636 |
COMMITMENTS AND CONTINGENCIES (Notes 12 and 13) | ||
SHAREHOLDERS’ EQUITY | ||
Common Shares, 480,000,000 shares authorized, 123,767,680 and 126,773,097 shares issued and outstanding | $ 707,070 | $ 702,598 |
Retained earnings | 657,326 | 790,697 |
Accumulated other comprehensive loss | (55,976) | (4,825) |
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,308,420 | 1,488,470 |
Noncontrolling interest | 67,797 | 86,681 |
TOTAL SHAREHOLDERS’ EQUITY | 1,376,217 | 1,575,151 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 2,314,460 | $ 2,453,115 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 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 | 123,767,680 | 126,773,097 |
Common shares, shares outstanding | 123,767,680 | 126,773,097 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | ||
OPERATING ACTIVITIES | |||
Net income | $ 34,501 | $ 89,510 | |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation, depletion and amortization | 85,784 | 90,316 | |
Non-cash cost of land sold and real estate development costs recovered upon sale | 9,532 | 8,644 | |
Stock-based incentive compensation expense | 3,522 | 6,780 | |
Deferred income taxes | (4,745) | 4,435 | |
Non-cash adjustments to unrecognized tax benefit liability | 135 | (10,547) | |
Depreciation and amortization from discontinued operations | 0 | 37,985 | |
Amortization of losses from pension and postretirement plans | 2,818 | 6,503 | |
Other | 1,074 | 2,946 | |
Changes in operating assets and liabilities: | |||
Receivables | 1,895 | 263 | |
Inventories | (9,403) | 2,607 | |
Accounts payable | 1,854 | 33,297 | |
Income tax receivable/payable | (947) | 756 | |
All other operating activities | 17,383 | 15,670 | |
Expenditures for dispositions and discontinued operations | 0 | (5,096) | |
CASH PROVIDED BY OPERATING ACTIVITIES | 143,403 | 284,069 | |
INVESTING ACTIVITIES | |||
Capital expenditures | (38,517) | (45,242) | |
Capital expenditures from discontinued operations | 0 | (60,442) | |
Real estate development costs | (1,745) | (3,314) | |
Purchase of timberlands | (88,466) | (93,189) | |
Change in restricted cash | (17,835) | 47,318 | |
Other | 3,692 | (478) | |
CASH USED FOR INVESTING ACTIVITIES | (142,871) | (155,347) | |
FINANCING ACTIVITIES | |||
Issuance of debt | 379,027 | 1,295,163 | |
Repayment of debt | (300,871) | (1,173,049) | |
Dividends paid | (94,280) | (225,877) | |
Proceeds from the issuance of common shares | 1,322 | 4,645 | |
Repurchase of common shares | (73,621) | (1,834) | |
Debt issuance costs | (1,678) | (12,380) | |
Net cash disbursed upon spin-off of Performance Fibers business | 0 | (31,420) | |
Other | 0 | (680) | |
CASH USED FOR FINANCING ACTIVITIES | (90,101) | (145,432) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (6,234) | (103) | |
CASH AND CASH EQUIVALENTS | |||
Change in cash and cash equivalents | (95,803) | (16,813) | |
Balance, beginning of year | 161,558 | 199,644 | |
Balance, end of period | 65,755 | 182,831 | |
Cash paid during the period: | |||
Interest | [1] | 21,944 | 38,248 |
Income taxes | 421 | 10,453 | |
Non-cash investing activity: | |||
Capital assets purchased on account | 1,945 | 2,310 | |
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 nine months ended September 30, 2015 and $2.1 million for the nine months ended September 30, 2014. For additional information on patronage refunds, see Note 13 — Debt in the 2014 Form 10-K. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 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 reclassifications are reflected in the September 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 Income and Comprehensive 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 Flows for the nine months ended September 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 August 2015, the FASB issued ASU No. 2015-14 Revenue from Contracts with Customers — Deferral of the Effective Date. ASU No. 2015-14 provides 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. In August 2015, the FASB issued ASU No. 2015-15 which clarified and amended the guidance so that debt issuance costs related to a line-of-credit arrangement can continue to be deferred and presented as an asset on the balance sheet, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. Rayonier intends to adopt ASU No. 2015-03 in the Company’s first quarter 2016 Form 10-Q and to defer and present debt issuance costs related to the Company’s revolving credit facility as an asset with subsequent amortization over the life of the facility. As of September 30, 2015 , the Company had approximately $3.4 million and $0.6 million of capitalized debt costs related to its outstanding non-revolving debt and revolving credit facilities, respectively. 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, which will not have a material impact on the consolidated financial statements. Subsequent Events Quarterly Dividend On October 19, 2015, the Company announced a fourth quarter dividend of 25 cents per share payable December 31, 2015, to shareholders of record on December 17, 2015. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 9 Months Ended |
Sep. 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 Income and Comprehensive 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 nine months ended September 30, 2014 , as presented in "Income from discontinued operations, net" in the Consolidated Statements of Income and Comprehensive Income: Three Months Ended September 30, 2014 Nine Months Ended September 30, 2014 Sales $— $456,180 Cost of sales and other — (368,868 ) Transaction expenses — (22,989 ) Income from discontinued operations before income taxes — 64,323 Income tax expense — (21,231 ) Income from discontinued operations, net $— $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 nine months ended September 30, 2014 : Three Months Ended September 30, 2014 Nine Months Ended September 30, 2014 Interest expense allocated to the Performance Fibers business $— ($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 Nine Months Ended September 30, 2014 Depreciation and amortization $— $37,985 Capital expenditures — 60,443 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 Nine Months Ended September 30, 2014 Hardwood purchases $— $3,935 |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | EARNINGS PER COMMON SHARE The following table provides details of the calculations of basic and diluted earnings per common share: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Income from continuing operations $19,181 $32,059 $34,501 $46,418 Less: Net loss from continuing operations attributable to noncontrolling interest (488 ) (642 ) (1,379 ) (970 ) Income from continuing operations attributable to Rayonier Inc. $19,669 $32,701 $35,880 $47,388 Income from discontinued operations, net, attributable to Rayonier Inc. — — — 43,092 Net income attributable to Rayonier Inc. $19,669 $32,701 $35,880 $90,480 Shares used for determining basic earnings per common share 125,143,706 126,501,837 126,125,802 126,428,279 Dilutive effect of: Stock options 91,495 320,839 129,906 347,721 Performance and restricted shares 31,051 37,682 37,064 165,627 Assumed conversion of Senior Exchangeable Notes (a) 39,720 1,692,343 477,931 2,395,698 Assumed conversion of warrants (a) — 1,237,812 — 2,344,335 Shares used for determining diluted earnings per common share 125,305,972 129,790,513 126,770,703 131,681,660 Basic earnings per common share attributable to Rayonier Inc.: Continuing operations $0.16 $0.26 $0.28 $0.38 Discontinued operations — — — 0.34 Net income $0.16 $0.26 $0.28 $0.72 Diluted earnings per common share attributable to Rayonier Inc.: Continuing operations $0.16 $0.25 $0.28 $0.36 Discontinued operations — — — 0.33 Net income $0.16 $0.25 $0.28 $0.69 Three Months Ended Nine Months Ended 2015 2014 2015 2014 Anti-dilutive shares excluded from the computations of diluted earnings per share: Stock options, performance and restricted shares 994,549 374,562 906,582 485,850 Assumed conversion of exchangeable note hedges (a) 39,720 1,692,343 477,931 2,395,698 Total 1,034,269 2,066,905 1,384,513 2,881,548 (a) Rayonier did not issue additional shares upon maturity of the Senior Exchangeable Notes due August 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 conversion of the hedges is excluded since they are anti-dilutive. The dilutive effect of the 2015 Notes was included for the portion of the periods presented in which the 2015 Notes were outstanding. Rayonier will distribute additional shares upon the February 2016 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 nine months ended September 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. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 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 and are subject to U.S. federal and state income taxation. New Zealand operations are subject to New Zealand corporate income taxation. 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 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 delivered logs, 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 nine months ended September 30, 2015 is principally related to the Matariki Forestry Group joint venture (the “New Zealand JV”). The prior year to date 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. Provision for Income Taxes from Discontinued Operations On June 27, 2014, Rayonier completed the spin-off of its Performance Fibers business. For the nine months ended September 30, 2014 , income tax expense related to Performance Fibers discontinued operations was $21.2 million . See Note 2 — Discontinued Operations for additional information on the spin-off of the Performance Fibers business. The table below reconciles the U.S. statutory rate to the Company’s effective tax rate for each period presented: Three Months Ended September 30, 2015 2014 Income tax expense at federal statutory rate $6,524 35.0 % $7,273 35.0 % REIT income and taxable losses (9,259 ) (49.6 ) (16,673 ) (80.2 ) Foreign operations (1,466 ) (7.9 ) (44 ) (0.2 ) Loss valuation allowance 2,742 14.7 — — Other 90 0.5 99 0.4 Income tax benefit before discrete items ($1,369 ) (7.3 )% ($9,345 ) (45.0 )% CBPC a valuation allowance 997 5.3 (990 ) (4.8 ) Uncertain tax positions — — (1,830 ) (8.8 ) Return-to-accrual adjustments (169 ) (0.9 ) 885 4.3 Income tax benefit as reported for continuing operations ($541 ) (2.9 )% ($11,280 ) (54.3 )% Nine Months Ended September 30, 2015 2014 Income tax expense at federal statutory rate $11,617 35.0 % $14,385 35.0 % REIT income and taxable losses (16,260 ) (48.9 ) (30,572 ) (74.4 ) Foreign operations (3,029 ) (9.1 ) (88 ) (0.2 ) Loss valuation allowance 5,360 16.1 — — Other 175 0.5 196 0.5 Income tax benefit before discrete items ($2,137 ) (6.4 )% ($16,079 ) (39.1 )% CBPC a valuation allowance 997 3.0 14,584 35.5 Spin-off related costs — — 797 1.9 Deferred tax inventory valuations — — (3,293 ) (8.0 ) Uncertain tax positions — — (1,830 ) (4.5 ) Return-to-accrual adjustments (169 ) (0.5 ) 885 2.2 Other — — (383 ) (0.9 ) Income tax benefit as reported for continuing operations ($1,309 ) (3.9 )% ($5,319 ) (12.9 )% (a) Cellulosic biofuels producer credit. Unrecognized Tax Benefits During the third quarter of 2014, the Company removed a $5.8 million unrecognized tax benefit liability due to the expiration of the statute of limitations on examination of its 2010 tax return. This resulted in a $1.8 million income tax benefit in the prior year periods. |
HIGHER AND BETTER USE TIMBERLAN
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 9 Months Ended |
Sep. 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 September 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 (5,640 ) (58 ) (5,698 ) Timber depletion from harvesting activities and basis of timber sold in real estate sales (2,876 ) — (2,876 ) Capitalized real estate development costs (b) — 2,029 2,029 Capital expenditures (silviculture) 121 — 121 Acquisitions — — — Intersegment transfers 1,861 — 1,861 Other — (29 ) (29 ) Total Balance at September 30, 2015 64,300 13,473 77,773 Less: Current portion (a) (5,449 ) (5,050 ) (10,499 ) Non-current portion at September 30, 2015 $58,851 $8,423 $67,274 (a) The current portion of Higher and Better Use Timberlands and Real Estate Development Costs is recorded in Inventory. See Note 15 — Inventory for additional information. (b) Capitalized real estate development costs for the nine months ended September 30, 2015 of $2,029,000 consisted of $1,745,000 in cash outflows and a $284,000 change in accrued spending. |
RESTRICTED DEPOSITS
RESTRICTED DEPOSITS | 9 Months Ended |
Sep. 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 September 30, 2015 and December 31, 2014 , the Company had $24.5 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 | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY An analysis of shareholders’ equity for the nine months ended September 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) — — 35,880 — (1,379 ) 34,501 Dividends ($0.75 per share) — — (94,262 ) — — (94,262 ) Issuance of shares under incentive stock plans 167,021 1,322 — — — 1,322 Stock-based compensation — 3,522 — — — 3,522 Tax deficiency on stock-based compensation — (272 ) — — — (272 ) Repurchase of common shares (c) (d) (3,172,438 ) (100 ) (75,873 ) — — (75,973 ) Net gain from pension and postretirement plans — — — 2,414 — 2,414 Adjustments to Rayonier Advanced Materials (e) — — 884 — — 884 Foreign currency translation adjustment — — — (37,101 ) (15,986 ) (53,087 ) Cash flow hedges — — — (16,464 ) (1,519 ) (17,983 ) Balance, September 30, 2015 123,767,680 $707,070 $657,326 ($55,976 ) $67,797 $1,376,217 (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 and third quarter of 2015 the Company repurchased approximately $10.7 million and $65.2 million , respectively of common stock at average prices of $25.94 and $23.65 per share. As of September 30, 2015 , the Company had 123.8 million shares of common stock outstanding and $24.1 million remaining under its share repurchase authorization announced in June 2015. (d) Includes $0.1 million of 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. (e) Primarily relates to return-to-accrual adjustments made in conjunction with the filing of the Company’s 2014 U.S. income tax return. |
SEGMENT AND GEOGRAPHICAL INFORM
SEGMENT AND GEOGRAPHICAL INFORMATION | 9 Months Ended |
Sep. 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 Income and Comprehensive Income is equal to segment income. Certain income (loss) items in the Consolidated Statements of Income and Comprehensive Income are not allocated to segments. These items, which include 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 nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended Nine Months Ended SALES 2015 2014 2015 2014 Southern Timber $34,797 $37,502 $103,009 $102,903 Pacific Northwest Timber 21,549 22,043 57,805 80,133 New Zealand Timber 41,065 48,479 121,482 130,786 Real Estate 35,232 26,689 65,968 66,236 Trading 19,014 15,116 59,500 80,027 Intersegment Eliminations — — — (3,924 ) Total $151,657 $149,829 $407,764 $456,161 Three Months Ended Nine Months Ended OPERATING INCOME 2015 2014 2015 2014 Southern Timber $10,504 $12,802 $34,694 $32,181 Pacific Northwest Timber 3,081 4,446 7,356 25,873 New Zealand Timber (915 ) 1,943 3,834 6,603 Real Estate 20,001 16,399 34,004 44,888 Trading 428 2,499 614 1,955 Corporate and other (5,320 ) (6,010 ) (18,452 ) (27,418 ) Total Operating Income $27,779 $32,079 62,050 84,082 Unallocated interest expense and other (9,139 ) ($11,300 ) (28,858 ) (42,983 ) Total income from continuing operations before income taxes $18,640 $20,779 $33,192 $41,099 Three Months Ended Nine Months Ended DEPRECIATION, DEPLETION AND AMORTIZATION 2015 2014 2015 2014 Southern Timber $14,404 $14,788 $41,356 $37,493 Pacific Northwest Timber 4,189 5,968 10,920 17,459 New Zealand Timber 7,021 9,314 22,207 23,477 Real Estate 6,269 3,807 11,087 11,140 Trading — — — — Corporate and other 75 123 214 747 Total $31,958 $34,000 $85,784 $90,316 Three Months Ended Nine 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 — 41 — 2,137 Real Estate 4,594 3,205 9,532 6,507 Trading — — — — Corporate and other — — — — Total $4,594 $3,246 $9,532 $8,644 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | 9 Months Ended |
Sep. 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 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 its New Zealand operations 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, 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 September 30, 2015 , foreign currency exchange contracts and foreign currency option contracts had maturity dates through February 2017 and April 2017, respectively. Foreign currency exchange and option contracts hedging foreign currency risk on export sales and ocean freight payments qualify for cash flow hedge accounting. The fair value of foreign currency exchange contracts is determined by a mark-to-market valuation which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate. The fair value of foreign currency option contracts is based on a mark-to-market calculation using the Black-Scholes option pricing model. The Company may de-designate these cash flow hedge relationships in advance or at the occurrence of the forecasted transaction. The portion of gains or losses on the derivative instrument previously accumulated in other comprehensive income for de-designated hedges remains in accumulated other comprehensive income until the forecasted transaction affects earnings. Changes in the value of derivative instruments after de-designation are recorded in earnings. De-designated cash flow hedges are included in Derivatives not designated as hedging instruments in the table below. In December 2014, the Company entered into a foreign currency exchange contract (notional amount of $22 million ) and in August 2015 foreign currency option contracts (notional amount of $309 million ) to mitigate the risk of fluctuations in foreign currency exchange rates when translating Rayonier New Zealand Limited and the New Zealand JV’s balance sheet to U.S. dollars. These contracts hedge a portion of the Company’s net investment in New Zealand and qualify as a net investment hedge. The fair value of these 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 hedges qualify for hedge accounting whereby fluctuations in fair market value during the life of the hedge are recorded in AOCI and remain there permanently unless a partial or full liquidation of the investment is made. At each reporting period, the Company reviews the hedges for ineffectiveness. Ineffectiveness can occur when changes to the investment or the hedged instrument are made such that the risk of foreign exchange movements are no longer mitigated by the hedging instrument. At that time, the amount related to the ineffectiveness of the hedge is recorded into earnings. The Company does not expect any ineffectiveness during the life of the hedges. The foreign currency exchange contract matures on December 21, 2015 and the foreign currency option contracts mature on February 3, 2016. 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 September 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 . Initially, these hedges qualified for hedge accounting; however, upon consolidation of the New Zealand JV in 2013, the hedges no longer qualified requiring all future changes in the fair market value of the hedges to be recorded in earnings. The Company is exposed to cash flow interest rate risk on its variable-rate Term Credit Agreement (as discussed below), and uses variable-to-fixed interest rate swaps to hedge this exposure. For these derivative instruments, the Company reports the gains/losses from the fluctuations in the fair market value of the hedges in AOCI and reclassifies them to earnings as interest expense in the same period in which the hedged interest payments affect earnings. In August 2015, the Company entered into a nine -year interest rate swap agreement for a notional amount of $170 million . This agreement fixes the LIBOR-related portion of the interest rate (LIBOR plus 1.625% ) to an average rate of 2.20% . This derivative instrument has been designated as an interest rate cash flow hedge and qualifies for hedge accounting. Also, in August 2015, the Company entered into a nine -year forward interest rate swap agreement with a start date in April 2016 for a notional amount of $180 million . This agreement fixes the LIBOR-related portion of the interest rate (LIBOR plus 1.625% ) to an average rate of 2.35% . This derivative instrument has been designated as an interest rate cash flow hedge and qualifies for hedge accounting. 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 tables demonstrate the impact of the Company’s derivatives on the Consolidated Statements of Income and Comprehensive Income for the three and nine months ended September 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 ($289 ) ($2,537 ) Foreign currency option contracts Other comprehensive (loss) income (788 ) (2,227 ) Interest rate swaps Other comprehensive (loss) income (13,644 ) — Derivatives designated as a net investment hedge: Foreign currency exchange contract Other comprehensive (loss) income 1,151 — Foreign currency option contracts Other comprehensive (loss) income 2,084 — Derivatives not designated as hedging instruments: Foreign currency option contracts Other operating (income) expense 847 — Interest rate swaps Interest income and miscellaneous (expense), net (1,650 ) (1,765 ) Fuel hedge contracts Cost of sales (benefit) — (62 ) Nine Months Ended Income Statement Location 2015 2014 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other comprehensive (loss) income ($2,597 ) ($1,868 ) Foreign currency option contracts Other comprehensive (loss) income (4,127 ) (2,006 ) Interest rate swaps Other comprehensive (loss) income (13,644 ) — Derivatives designated as net investment hedges: Foreign currency exchange contract Other comprehensive (loss) income 4,258 — Foreign currency option contracts Other comprehensive (loss) income 2,084 — Derivatives not designated as hedging instruments: Foreign currency exchange contracts Other operating (income) expense — 25 Foreign currency option contracts Other operating (income) expense 1,394 7 Interest rate swaps Interest and miscellaneous (expense) income, net 4,923 (3,628 ) Fuel hedge contracts Cost of sales (benefit) — 163 During the next 12 months, the amount of the September 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 $4.9 million . The following table contains the notional amounts of the derivative financial instruments recorded in the Consolidated Balance Sheets: Notional Amount September 30, 2015 December 31, 2014 Derivatives designated as cash flow hedges: Foreign currency exchange contracts $25,840 $28,540 Foreign currency option contracts 129,100 79,400 Interest rate swaps 350,000 — Derivatives designated as net investment hedges: Foreign currency exchange contract 22,320 27,419 Foreign currency option contracts 308,647 — Derivative not designated as a hedging instrument: Interest rate swaps 121,163 161,968 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) September 30, 2015 December 31, 2014 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Prepaid and other current assets $24 $132 Other assets — 59 Other current liabilities (2,677 ) (272 ) Other non-current liabilities (1,087 ) — Foreign currency option contracts Prepaid and other current assets 127 299 Other assets 218 198 Other current liabilities (4,222 ) (1,439 ) Other non-current liabilities (907 ) (196 ) Interest rate swaps Other non-current liabilities (13,644 ) — Derivatives designated as net investment hedges: Foreign currency exchange contract Prepaid and other current assets 4,035 — Other current liabilities — (223 ) Foreign currency option contracts Prepaid and other current assets 3,640 — Other current liabilities (1,556 ) — Derivative not designated as a hedging instrument: Interest rate swaps Other non-current liabilities (8,733 ) (7,247 ) Total derivative contracts: Prepaid and other current assets $7,826 $431 Other assets 218 257 Total derivative assets $8,044 $688 Other current liabilities (8,455 ) (1,934 ) Other non-current liabilities (24,371 ) (7,443 ) Total derivative liabilities ($32,826 ) ($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 | 9 Months Ended |
Sep. 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 September 30, 2015 and December 31, 2014 , using market information and what the Company believes to be appropriate valuation methodologies under generally accepted accounting principles: September 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 $65,755 $65,755 — $161,558 $161,558 — Restricted cash (a) 24,523 24,523 — 6,688 6,688 — Current maturities of long-term debt — — — (129,706 ) — (156,762 ) Long-term debt (791,233 ) — (791,495 ) (621,849 ) — (628,476 ) Interest rate swaps (b) (22,377 ) — (22,377 ) (7,247 ) — (7,247 ) Foreign currency exchange contracts (b) 295 — 295 (304 ) — (304 ) Foreign currency option contracts (b) (2,700 ) — (2,700 ) (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 | 9 Months Ended |
Sep. 30, 2015 | |
Guarantees [Abstract] | |
Guarantees | GUARANTEES The Company provides financial guarantees as required by creditors, insurance programs, and various governmental agencies. As of September 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) 781 — Total financial commitments $19,720 $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 2016 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 September 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. |
COMMITMENTS (COMMITMENTS)
COMMITMENTS (COMMITMENTS) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | COMMITMENTS The Company leases certain buildings, machinery, and equipment under various operating leases. The Company also has long-term lease agreements on certain timberlands in the Southern U.S. and New Zealand. U.S. leases typically have initial terms of approximately 30 to 65 years, with renewal provisions in some cases. New Zealand timberland lease terms range between 30 and 99 years. Such leases are generally non-cancellable and require minimum annual rental payments. At September 30, 2015, the future minimum payments under non-cancellable operating and timberland leases were as follows: Operating Leases Timberland Leases (a) Purchase Obligations (b) Total Remaining 2015 $458 $2,946 $2,434 $5,838 2016 1,658 9,278 8,200 19,136 2017 1,202 9,111 6,085 16,398 2018 539 7,515 5,556 13,610 2019 411 7,044 4,187 11,642 Thereafter 1,009 126,095 15,767 142,871 $5,277 $161,989 $42,229 $209,495 (a) The majority of timberland leases are subject to increases or decreases based on either the Consumer Price Index, Producer Price Index or market rates. (b) Purchase obligations include payments expected to be made on derivative financial instruments. |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
Sep. 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 “Consolidated Complaint”). In the Consolidated Complaint, plaintiffs added allegations as to and added as a defendant N. Lynn Wilson, a former officer of Rayonier. With the filing of the Consolidated Complaint, David L. Nunes and H. Edwin Kiker were dropped from the case as defendants. Defendants timely filed Motions to Dismiss the Consolidated Complaint on May 15, 2015. After oral argument on Defendants' motions on August 25, 2015, the Court dismissed the Consolidated Complaint without prejudice, allowing plaintiffs leave to refile. Plaintiffs filed the Amended Consolidated Class Action Complaint (the "Amended Complaint") on September 25, 2015, which continued to assert claims against the Company, as well as Ms. Wilson and Messrs. Boynton and Vanden Noort. Defendants timely filed Motions to Dismiss the Amended Complaint on October 26, 2015, which are pending. 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 | 9 Months Ended |
Sep. 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. In 2015 , the Company has no mandatory pension contribution requirement. 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 $378 $3 $3 Interest cost 830 786 13 18 Expected return on plan assets (1,007 ) (1,135 ) — — Amortization of prior service cost 3 3 — — Amortization of losses 950 601 3 3 Net periodic benefit cost $1,147 $633 $19 $24 Pension Postretirement Nine Months Ended Nine Months Ended 2015 2014 2015 2014 Components of Net Periodic Benefit Cost Service cost $1,113 $3,545 $8 $328 Interest cost 2,489 9,921 39 423 Expected return on plan assets (3,020 ) (14,123 ) — — Amortization of prior service cost 10 572 — 8 Amortization of losses 2,799 5,942 9 248 Amortization of negative plan amendment — — — (267 ) Net periodic benefit cost (a) $3,391 $5,857 $56 $740 (a) Net periodic benefit cost for the nine months ended September 30, 2014 includes $4.0 million recorded in “Income from discontinued operations, net” on the Consolidated Statements of Income and Comprehensive Income. |
INVENTORY
INVENTORY | 9 Months Ended |
Sep. 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 September 30, 2015 and December 31, 2014 , Rayonier’s inventory was solely comprised of finished goods, as follows: September 30, 2015 December 31, 2014 Finished goods inventory Real estate inventory (a) $10,499 $4,932 Log inventory 4,007 3,451 Total inventory $14,506 $8,383 (a) Represents cost of HBU real estate (including capitalized development costs) expected to be sold within 12 months. |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Rayonier’s debt consisted of the following at September 30, 2015 : September 30, 2015 Senior Notes due 2022 at a fixed interest rate of 3.75% $325,000 Term Credit Agreement borrowings due 2024 at a variable interest rate of 1.8% at September 30, 2015 170,000 Revolving Credit Facility borrowings due 2020 at a variable interest rate of 1.4% at September 30, 2015 67,000 Mortgage notes due 2017 at fixed interest rates of 4.35% 42,739 Solid waste bond due 2020 at a variable interest rate of 1.3% at September 30, 2015 15,000 New Zealand JV Revolving Credit Facility due 2016 at a variable interest rate of 4.83% at September 30, 2015 149,860 New Zealand JV noncontrolling interest shareholder loan at 0% interest rate 21,634 Total debt 791,233 Less: Current maturities of long-term debt — Long-term debt $791,233 Principal payments due during the next five years and thereafter are as follows: 2015 — 2016 149,860 2017 (a) 42,000 2018 — 2019 — Thereafter 598,634 Total Debt $790,494 (a) The mortgage notes due in 2017 were recorded at a premium of $0.7 million as of September 30, 2015. Upon maturity the liability will be $42 million . Term Credit Agreement On August 5, 2015, the Company entered into a credit agreement with CoBank, ACB, as administrative agent, and a syndicate of Farm Credit institutions and other commercial banks to provide $550 million of new credit facilities, including a nine -year $350 million term loan facility. The Company has entered into an interest rate swap transaction to fix the cost of the term loan facility over its nine-year term. The periodic interest rate on the term credit agreement is LIBOR plus 1.625% , with an unused commitment fee of 0.175% . The Company receives annual patronage refunds, which are profit distributions made by a cooperative to its member-users based on the quantity or value of business done with the member-user. The Company estimates the effective interest rate for the third quarter was approximately 3.3% after consideration of the estimated patronage refunds and interest rate swaps. As of September 30, 2015 , the Company had additional draws available of $180.0 million under the term credit agreement. Revolving Credit Facility In August 2015, the Company entered into a five -year $200 million unsecured revolving credit facility, replacing the previous $200 million revolving credit facility and $100 million farm credit facility which were scheduled to expire in April 2016 and December 2019, respectively. The periodic interest rate on the revolving credit facility is LIBOR plus 1.250% , with an unused commitment fee of 0.175% . Net draws of $ 67.0 million were made in the third quarter of 2015 on the revolving credit facility. At September 30, 2015 , the Company had available borrowings of $ 131.2 million under the revolving credit facility, net of $1.8 million to secure its outstanding letters of credit. 4.50% Senior Exchangeable Notes issued August 2009 In August 2015 the Company paid, upon maturity, $131 million of its 4.50% Senior Exchangeable Notes. Joint Venture Debt As of September 30, 2015 , the New Zealand JV had $150 million of long-term variable rate debt maturing in September 2016. The Company intends to use 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 credit facility. The entire balance of the New Zealand JV Revolving Credit Facility remained classified as long-term debt at September 30, 2015 due to the ability and intent of the Company to refinance it on a long-term basis. 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 September 30, 2015 was $121.0 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 0.80% with an additional 0.80% credit line fee. The Company estimates the periodic effective interest rate on New Zealand JV debt for the third quarter was approximately 6.4% after consideration of interest rate swaps. During the nine months ended September 30, 2015 , the New Zealand JV made additional borrowings and repayments of $5.0 million on its working capital facility. Additional draws totaling $15 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 for the nine months through September 30, 2015 decreased debt on a U.S. dollar basis for the revolving facility and shareholder loan by $34.2 million and $4.9 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. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) The following table summarizes the changes in AOCI by component for the nine months ended September 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 hedges 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 (43,420 ) 6,319 (19,776 ) (d) — (56,877 ) Amounts reclassified from accumulated other comprehensive loss — — 3,312 2,414 (c) 5,726 Net other comprehensive income/(loss) (43,420 ) 6,319 (16,464 ) 2,414 (51,151 ) Balance as of September 30, 2015 ($17,887 ) $6,174 ($18,012 ) ($26,251 ) ($55,976 ) (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 at December 31, 2014 due to the spin-off. 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 14 — Employee Benefit Plans for additional information. (d) Includes $13.6 million of other comprehensive loss related to interest rate swaps entered into in third quarter 2015. See Note 9 — Derivative Financial Instruments and Hedging Activities for additional information. The following table presents details of the amounts reclassified in their entirety from AOCI to net income for the nine months ended September 30, 2015 and September 30, 2014 : Details about accumulated other comprehensive income components Amount reclassified from accumulated other comprehensive income Affected line item in the income statement September 30, 2015 September 30, 2014 Realized loss (gain) on foreign currency exchange contracts $3,928 ($3,194 ) Other operating income, net Realized loss (gain) on foreign currency option contracts 3,149 (1,058 ) Other operating income, net Noncontrolling interest (2,477 ) 1,488 Comprehensive (loss) income attributable to noncontrolling interest Income tax (benefit) expense on loss from foreign currency contracts (1,288 ) 835 Income tax benefit Net loss (gain) on cash flow hedges reclassified from accumulated other comprehensive income 3,312 (1,929 ) Income tax expense on pension plan contributed to Rayonier Advanced Materials — 843 Income tax expense Net loss (gain) from accumulated other comprehensive income $3,312 ($1,086 ) |
OTHER OPERATING INCOME, NET
OTHER OPERATING INCOME, NET | 9 Months Ended |
Sep. 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 September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Lease income, primarily from hunting leases $4,349 $5,013 $14,348 $12,015 Other non-timber income 581 817 2,634 1,810 Foreign currency income (loss) (149 ) 4,304 67 4,292 Gain (loss) on sale or disposal of property and equipment 4 66 6 46 (Loss) gain on foreign currency exchange contracts (2,297 ) — (3,290 ) (32 ) Bankruptcy claim settlement — — — 5,779 Gain (loss) on sale of carbon credits (a) — — 352 (307 ) Miscellaneous income (expense), net 367 (1,056 ) 1,450 (2,695 ) Total $2,855 $9,144 $15,567 $20,908 (a) Loss in 2014 reflects surrender of carbon credit units. |
CONSOLIDATING FINANCIAL STATEME
CONSOLIDATING FINANCIAL STATEMENTS | 9 Months Ended |
Sep. 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 March 2012 , Rayonier Inc. issued $325 million of 3.75% Senior Notes due 2022 . In connection with these notes, the Company provides the following condensed consolidating financial information in accordance with SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered . The subsidiary guarantors, Rayonier Operating Company LLC (“ROC”) and Rayonier TRS Holdings Inc., are wholly-owned by the Parent Company, Rayonier Inc. The notes are fully and unconditionally guaranteed on a joint and several basis by the guarantor subsidiaries. CONDENSED CONSOLIDATING STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME For the Three Months Ended September 30, 2015 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated SALES — — $151,657 — $151,657 Costs and Expenses Cost of sales — — 116,044 — 116,044 Selling and general expenses — 4,412 6,277 — 10,689 Other operating expense (income), net — 16 (2,871 ) — (2,855 ) — 4,428 119,450 — 123,878 OPERATING (LOSS) INCOME — (4,428 ) 32,207 — 27,779 Interest expense (3,227 ) (2,240 ) (2,114 ) — (7,581 ) Interest and miscellaneous income (expense), net 1,980 583 (4,121 ) — (1,558 ) Equity in income from subsidiaries 20,916 26,647 — (47,563 ) — INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 19,669 20,562 25,972 (47,563 ) 18,640 Income tax benefit — 354 187 — 541 NET INCOME 19,669 20,916 26,159 (47,563 ) 19,181 Less: Net loss attributable to noncontrolling interest — — (488 ) — (488 ) NET INCOME ATTRIBUTABLE TO RAYONIER INC. 19,669 20,916 26,647 (47,563 ) 19,669 OTHER COMPREHENSIVE LOSS Foreign currency translation adjustment (8,662 ) (8,662 ) (13,370 ) 17,324 (13,370 ) Cash flow hedges, net of income tax (13,954 ) (13,954 ) (14,120 ) 27,908 (14,120 ) Amortization of pension and postretirement plans, net of income tax 890 890 117 (1,007 ) 890 Total other comprehensive loss (21,726 ) (21,726 ) (27,373 ) 44,225 (26,600 ) COMPREHENSIVE LOSS (2,057 ) (810 ) (1,214 ) (3,338 ) (7,419 ) Less: Comprehensive loss attributable to noncontrolling interest — — (5,363 ) — (5,363 ) COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. ($2,057 ) ($810 ) $4,149 ($3,338 ) ($2,056 ) CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended September 30, 2014 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated SALES — — $149,829 — $149,829 Costs and Expenses Cost of sales — — 118,088 — 118,088 Selling and general expenses — 3,488 5,318 — 8,806 Other operating income, net — (854 ) (8,290 ) — (9,144 ) — 2,634 115,116 — 117,750 OPERATING (LOSS) INCOME — (2,634 ) 34,713 — 32,079 Interest expense (3,685 ) (2,981 ) (2,900 ) — (9,566 ) Interest and miscellaneous income (expense), net 1,799 554 (4,087 ) — (1,734 ) Equity in income from subsidiaries 34,587 38,414 — (73,001 ) — INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 32,701 33,353 27,726 (73,001 ) 20,779 Income tax benefit — 1,234 10,046 — 11,280 NET INCOME 32,701 34,587 37,772 (73,001 ) 32,059 Less: Net loss attributable to noncontrolling interest — — (642 ) — (642 ) NET INCOME ATTRIBUTABLE TO RAYONIER INC. 32,701 34,587 38,414 (73,001 ) 32,701 OTHER COMPREHENSIVE LOSS Foreign currency translation adjustment (27,317 ) (27,317 ) (37,738 ) 54,495 (37,877 ) Cash flow hedges, net of income tax (2,270 ) (2,272 ) (3,494 ) 4,542 (3,494 ) Amortization of pension and postretirement plans, net of income tax 2,265 2,265 (4,120 ) 1,855 2,265 Total other comprehensive loss (27,322 ) (27,324 ) (45,352 ) 60,892 (39,106 ) COMPREHENSIVE INCOME (LOSS) 5,379 7,263 (7,580 ) (12,109 ) (7,047 ) Less: Comprehensive loss attributable to noncontrolling interest — — (12,295 ) (131 ) (12,426 ) COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. $5,379 $7,263 $4,715 ($11,978 ) $5,379 CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2015 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated SALES — — $407,764 — $407,764 Costs and Expenses Cost of sales — — 326,966 — 326,966 Selling and general expenses — 15,691 18,624 — 34,315 Other operating income, net — (445 ) (15,122 ) — (15,567 ) — 15,246 330,468 — 345,714 OPERATING (LOSS) INCOME — (15,246 ) 77,296 — 62,050 Interest expense (9,564 ) (7,304 ) (7,740 ) — (24,608 ) Interest and miscellaneous income (expense), net 5,787 1,956 (11,993 ) — (4,250 ) Equity in income from subsidiaries 39,657 58,010 — (97,667 ) — INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 35,880 37,416 57,563 (97,667 ) 33,192 Income tax benefit (expense) — 2,241 (932 ) — 1,309 NET INCOME 35,880 39,657 56,631 (97,667 ) 34,501 Less: Net loss attributable to noncontrolling interest — — (1,379 ) — (1,379 ) NET INCOME ATTRIBUTABLE TO RAYONIER INC. 35,880 39,657 58,010 (97,667 ) 35,880 OTHER COMPREHENSIVE LOSS Foreign currency translation adjustment (37,100 ) (37,100 ) (53,088 ) 74,201 (53,087 ) Cash flow hedges, net of income tax (16,465 ) (16,465 ) (17,983 ) 32,930 (17,983 ) Amortization of pension and postretirement plans, net of income tax 2,414 2,414 132 (2,546 ) 2,414 Total other comprehensive loss (51,151 ) (51,151 ) (70,939 ) 104,585 (68,656 ) COMPREHENSIVE LOSS (15,271 ) (11,494 ) (14,308 ) 6,918 (34,155 ) Less: Comprehensive loss attributable to noncontrolling interest — — (18,884 ) — (18,884 ) COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. ($15,271 ) ($11,494 ) $4,576 $6,918 ($15,271 ) CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2014 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- Consolidating Adjustments Total Consolidated SALES — — $456,161 — $456,161 Costs and Expenses Cost of sales — — 357,083 — 357,083 Selling and general expenses — 8,032 27,872 — 35,904 Other operating expense (income), net — 3,094 (24,002 ) — (20,908 ) — 11,126 360,953 — 372,079 OPERATING (LOSS) INCOME — (11,126 ) 95,208 — 84,082 Interest expense (10,074 ) (21,121 ) (4,657 ) — (35,852 ) Interest and miscellaneous income (expense), net 7,230 (3,780 ) (10,581 ) — (7,131 ) Equity in income from subsidiaries 93,324 121,047 — (214,371 ) — INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 90,480 85,020 79,970 (214,371 ) 41,099 Income tax benefit (expense) — 8,304 (2,985 ) — 5,319 INCOME FROM CONTINUING OPERATIONS 90,480 93,324 76,985 (214,371 ) 46,418 DISCONTINUED OPERATIONS, NET Income from discontinued operations, net of income tax — — 43,092 — 43,092 NET INCOME 90,480 93,324 120,077 (214,371 ) 89,510 Less: Net loss attributable to noncontrolling interest — — (970 ) — (970 ) NET INCOME ATTRIBUTABLE TO RAYONIER INC. 90,480 93,324 121,047 (214,371 ) 90,480 OTHER COMPREHENSIVE INCOME Foreign currency translation adjustment (11,770 ) (11,770 ) (16,426 ) 23,540 (16,426 ) Cash flow hedges, net of income tax (1,756 ) (1,758 ) (2,703 ) 3,514 (2,703 ) Amortization of pension and postretirement plans, net of income tax 63,235 63,235 90,214 (153,449 ) 63,235 Total other comprehensive income 49,709 49,707 71,085 (126,395 ) 44,106 COMPREHENSIVE INCOME 140,189 143,031 191,162 (340,766 ) 133,616 Less: Comprehensive income attributable to noncontrolling interest — — (6,573 ) — (6,573 ) COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. $140,189 $143,031 $197,735 ($340,766 ) $140,189 CONDENSED CONSOLIDATING BALANCE SHEETS As of September 30, 2015 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $12,955 $10,760 $42,040 — $65,755 Accounts receivable, less allowance for doubtful accounts — 143 19,153 — 19,296 Inventory — — 14,506 — 14,506 Prepaid and other current assets — 11,124 12,942 — 24,066 Total current assets 12,955 22,027 88,641 — 123,623 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — 2,038,032 — 2,038,032 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS — 67,274 — 67,274 NET PROPERTY, PLANT AND EQUIPMENT — 377 5,780 — 6,157 INVESTMENT IN SUBSIDIARIES 1,357,910 2,213,466 — (3,571,376 ) — INTERCOMPANY NOTES RECEIVABLE 266,149 (2,914 ) — (263,235 ) — OTHER ASSETS 2,396 24,599 52,379 — 79,374 TOTAL ASSETS $1,639,410 $2,257,555 $2,252,106 ($3,834,611 ) $2,314,460 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable — $1,437 $17,864 — $19,301 Accrued taxes — 13 17,225 — 17,238 Accrued payroll and benefits — 3,181 2,492 — 5,673 Accrued interest 5,990 500 37,782 (35,329 ) 8,943 Other current liabilities — 14,031 16,169 — 30,200 Total current liabilities 5,990 19,162 91,532 (35,329 ) 81,355 LONG-TERM DEBT 325,000 252,000 214,233 — 791,233 PENSION AND OTHER POSTRETIREMENT BENEFITS — 34,283 (684 ) — 33,599 OTHER NON-CURRENT LIABILITIES — 20,288 11,768 — 32,056 INTERCOMPANY PAYABLE — 573,912 (257,486 ) (316,426 ) — TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,308,420 1,357,910 2,124,946 (3,482,856 ) 1,308,420 Noncontrolling interest — — 67,797 — 67,797 TOTAL SHAREHOLDERS’ EQUITY 1,308,420 1,357,910 2,192,743 (3,482,856 ) 1,376,217 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,639,410 $2,257,555 $2,252,106 ($3,834,611 ) $2,314,460 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 Nine Months Ended September 30, 2015 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated CASH PROVIDED BY OPERATING ACTIVITIES $77,316 $92,414 $64,901 ($91,228 ) $143,403 INVESTING ACTIVITIES Capital expenditures — (78 ) (38,439 ) — (38,517 ) Real estate development costs — — (1,745 ) — (1,745 ) Purchase of timberlands — — (88,466 ) — (88,466 ) Change in restricted cash — — (17,835 ) — (17,835 ) Investment in Subsidiaries — (75,946 ) — 75,946 — Other — — 3,692 — 3,692 CASH USED FOR INVESTING ACTIVITIES — (76,024 ) (142,793 ) 75,946 (142,871 ) FINANCING ACTIVITIES Issuance of debt — 374,000 5,027 — 379,027 Repayment of debt — (294,472 ) (6,399 ) — (300,871 ) Dividends paid (94,280 ) — — — (94,280 ) Proceeds from the issuance of common shares 1,322 — — — 1,322 Repurchase of common shares (73,621 ) — — — (73,621 ) Debt issuance costs — (1,678 ) — — (1,678 ) Intercompany distributions — (91,585 ) 76,303 15,282 — CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES (166,579 ) (13,735 ) 74,931 15,282 (90,101 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH — — (6,234 ) — (6,234 ) CASH AND CASH EQUIVALENTS Change in cash and cash equivalents (89,263 ) 2,655 (9,195 ) — (95,803 ) Balance, beginning of year 102,218 8,105 51,235 — 161,558 Balance, end of period $12,955 $10,760 $42,040 — $65,755 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 2014 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated CASH PROVIDED BY OPERATING ACTIVITIES $219,988 $238,010 $57,801 ($231,730 ) $284,069 INVESTING ACTIVITIES Capital expenditures — (400 ) (44,842 ) — (45,242 ) Capital expenditures from discontinued operations — — (60,442 ) — (60,442 ) Real estate development costs — — (3,314 ) — (3,314 ) Purchase of timberlands — — (93,189 ) — (93,189 ) Change in restricted cash — — 47,318 — 47,318 Investment in Subsidiaries — 855,014 — (855,014 ) — Other — — (478 ) — (478 ) CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES — 854,614 (154,947 ) (855,014 ) (155,347 ) FINANCING ACTIVITIES Issuance of debt — 185,000 1,110,163 — 1,295,163 Repayment of debt — (1,002,500 ) (170,549 ) — (1,173,049 ) Dividends paid (225,877 ) — — — (225,877 ) Proceeds from the issuance of common shares 4,645 — — — 4,645 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 (31,420 ) — — — (31,420 ) Issuance of intercompany notes (11,400 ) — 11,400 — — Intercompany distributions — (234,659 ) (852,085 ) 1,086,744 — Other — — (680 ) — (680 ) CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES (265,886 ) (1,052,159 ) 85,869 1,086,744 (145,432 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH — — (103 ) — (103 ) CASH AND CASH EQUIVALENTS Change in cash and cash equivalents (45,898 ) 40,465 (11,380 ) — (16,813 ) Balance, beginning of year 130,181 11,023 58,440 — 199,644 Balance, end of period $84,283 $51,488 $47,060 — $182,831 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 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 reclassifications are reflected in the September 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 Income and Comprehensive 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 Flows for the nine months ended September 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 August 2015, the FASB issued ASU No. 2015-14 Revenue from Contracts with Customers — Deferral of the Effective Date. ASU No. 2015-14 provides 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. In August 2015, the FASB issued ASU No. 2015-15 which clarified and amended the guidance so that debt issuance costs related to a line-of-credit arrangement can continue to be deferred and presented as an asset on the balance sheet, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. Rayonier intends to adopt ASU No. 2015-03 in the Company’s first quarter 2016 Form 10-Q and to defer and present debt issuance costs related to the Company’s revolving credit facility as an asset with subsequent amortization over the life of the facility. As of September 30, 2015 , the Company had approximately $3.4 million and $0.6 million of capitalized debt costs related to its outstanding non-revolving debt and revolving credit facilities, respectively. 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, which will not have a material impact on the consolidated financial statements. |
Subsequent Events | Subsequent Events Quarterly Dividend On October 19, 2015, the Company announced a fourth quarter dividend of 25 cents per share payable December 31, 2015, to shareholders of record on December 17, 2015. |
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 Income and Comprehensive Income is equal to segment income. Certain income (loss) items in the Consolidated Statements of Income and Comprehensive Income are not allocated to segments. These items, which include 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 its New Zealand operations 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) | 9 Months Ended |
Sep. 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 nine months ended September 30, 2014 , as presented in "Income from discontinued operations, net" in the Consolidated Statements of Income and Comprehensive Income: Three Months Ended September 30, 2014 Nine Months Ended September 30, 2014 Sales $— $456,180 Cost of sales and other — (368,868 ) Transaction expenses — (22,989 ) Income from discontinued operations before income taxes — 64,323 Income tax expense — (21,231 ) Income from discontinued operations, net $— $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 nine months ended September 30, 2014 : Three Months Ended September 30, 2014 Nine Months Ended September 30, 2014 Interest expense allocated to the Performance Fibers business $— ($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 Nine Months Ended September 30, 2014 Depreciation and amortization $— $37,985 Capital expenditures — 60,443 |
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 Nine Months Ended September 30, 2014 Hardwood purchases $— $3,935 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table provides details of the calculations of basic and diluted earnings per common share: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Income from continuing operations $19,181 $32,059 $34,501 $46,418 Less: Net loss from continuing operations attributable to noncontrolling interest (488 ) (642 ) (1,379 ) (970 ) Income from continuing operations attributable to Rayonier Inc. $19,669 $32,701 $35,880 $47,388 Income from discontinued operations, net, attributable to Rayonier Inc. — — — 43,092 Net income attributable to Rayonier Inc. $19,669 $32,701 $35,880 $90,480 Shares used for determining basic earnings per common share 125,143,706 126,501,837 126,125,802 126,428,279 Dilutive effect of: Stock options 91,495 320,839 129,906 347,721 Performance and restricted shares 31,051 37,682 37,064 165,627 Assumed conversion of Senior Exchangeable Notes (a) 39,720 1,692,343 477,931 2,395,698 Assumed conversion of warrants (a) — 1,237,812 — 2,344,335 Shares used for determining diluted earnings per common share 125,305,972 129,790,513 126,770,703 131,681,660 Basic earnings per common share attributable to Rayonier Inc.: Continuing operations $0.16 $0.26 $0.28 $0.38 Discontinued operations — — — 0.34 Net income $0.16 $0.26 $0.28 $0.72 Diluted earnings per common share attributable to Rayonier Inc.: Continuing operations $0.16 $0.25 $0.28 $0.36 Discontinued operations — — — 0.33 Net income $0.16 $0.25 $0.28 $0.69 Three Months Ended Nine Months Ended 2015 2014 2015 2014 Anti-dilutive shares excluded from the computations of diluted earnings per share: Stock options, performance and restricted shares 994,549 374,562 906,582 485,850 Assumed conversion of exchangeable note hedges (a) 39,720 1,692,343 477,931 2,395,698 Total 1,034,269 2,066,905 1,384,513 2,881,548 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Three Months Ended Nine Months Ended 2015 2014 2015 2014 Anti-dilutive shares excluded from the computations of diluted earnings per share: Stock options, performance and restricted shares 994,549 374,562 906,582 485,850 Assumed conversion of exchangeable note hedges (a) 39,720 1,692,343 477,931 2,395,698 Total 1,034,269 2,066,905 1,384,513 2,881,548 (a) Rayonier did not issue additional shares upon maturity of the Senior Exchangeable Notes due August 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 conversion of the hedges is excluded since they are anti-dilutive. The dilutive effect of the 2015 Notes was included for the portion of the periods presented in which the 2015 Notes were outstanding. Rayonier will distribute additional shares upon the February 2016 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 nine months ended September 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. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 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 September 30, 2015 2014 Income tax expense at federal statutory rate $6,524 35.0 % $7,273 35.0 % REIT income and taxable losses (9,259 ) (49.6 ) (16,673 ) (80.2 ) Foreign operations (1,466 ) (7.9 ) (44 ) (0.2 ) Loss valuation allowance 2,742 14.7 — — Other 90 0.5 99 0.4 Income tax benefit before discrete items ($1,369 ) (7.3 )% ($9,345 ) (45.0 )% CBPC a valuation allowance 997 5.3 (990 ) (4.8 ) Uncertain tax positions — — (1,830 ) (8.8 ) Return-to-accrual adjustments (169 ) (0.9 ) 885 4.3 Income tax benefit as reported for continuing operations ($541 ) (2.9 )% ($11,280 ) (54.3 )% Nine Months Ended September 30, 2015 2014 Income tax expense at federal statutory rate $11,617 35.0 % $14,385 35.0 % REIT income and taxable losses (16,260 ) (48.9 ) (30,572 ) (74.4 ) Foreign operations (3,029 ) (9.1 ) (88 ) (0.2 ) Loss valuation allowance 5,360 16.1 — — Other 175 0.5 196 0.5 Income tax benefit before discrete items ($2,137 ) (6.4 )% ($16,079 ) (39.1 )% CBPC a valuation allowance 997 3.0 14,584 35.5 Spin-off related costs — — 797 1.9 Deferred tax inventory valuations — — (3,293 ) (8.0 ) Uncertain tax positions — — (1,830 ) (4.5 ) Return-to-accrual adjustments (169 ) (0.5 ) 885 2.2 Other — — (383 ) (0.9 ) Income tax benefit as reported for continuing operations ($1,309 ) (3.9 )% ($5,319 ) (12.9 )% (a) Cellulosic biofuels producer credit. |
HIGHER AND BETTER USE TIMBERL30
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS (Tables) | 9 Months Ended |
Sep. 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 September 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 (5,640 ) (58 ) (5,698 ) Timber depletion from harvesting activities and basis of timber sold in real estate sales (2,876 ) — (2,876 ) Capitalized real estate development costs (b) — 2,029 2,029 Capital expenditures (silviculture) 121 — 121 Acquisitions — — — Intersegment transfers 1,861 — 1,861 Other — (29 ) (29 ) Total Balance at September 30, 2015 64,300 13,473 77,773 Less: Current portion (a) (5,449 ) (5,050 ) (10,499 ) Non-current portion at September 30, 2015 $58,851 $8,423 $67,274 (a) The current portion of Higher and Better Use Timberlands and Real Estate Development Costs is recorded in Inventory. See Note 15 — Inventory for additional information. (b) Capitalized real estate development costs for the nine months ended September 30, 2015 of $2,029,000 consisted of $1,745,000 in cash outflows and a $284,000 change in accrued spending. |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | An analysis of shareholders’ equity for the nine months ended September 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) — — 35,880 — (1,379 ) 34,501 Dividends ($0.75 per share) — — (94,262 ) — — (94,262 ) Issuance of shares under incentive stock plans 167,021 1,322 — — — 1,322 Stock-based compensation — 3,522 — — — 3,522 Tax deficiency on stock-based compensation — (272 ) — — — (272 ) Repurchase of common shares (c) (d) (3,172,438 ) (100 ) (75,873 ) — — (75,973 ) Net gain from pension and postretirement plans — — — 2,414 — 2,414 Adjustments to Rayonier Advanced Materials (e) — — 884 — — 884 Foreign currency translation adjustment — — — (37,101 ) (15,986 ) (53,087 ) Cash flow hedges — — — (16,464 ) (1,519 ) (17,983 ) Balance, September 30, 2015 123,767,680 $707,070 $657,326 ($55,976 ) $67,797 $1,376,217 (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 and third quarter of 2015 the Company repurchased approximately $10.7 million and $65.2 million , respectively of common stock at average prices of $25.94 and $23.65 per share. As of September 30, 2015 , the Company had 123.8 million shares of common stock outstanding and $24.1 million remaining under its share repurchase authorization announced in June 2015. (d) Includes $0.1 million of 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. (e) Primarily relates to return-to-accrual adjustments made in conjunction with the filing of the Company’s 2014 U.S. income tax return. |
SEGMENT AND GEOGRAPHICAL INFO32
SEGMENT AND GEOGRAPHICAL INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Segment information for the three and nine months ended September 30, 2015 and 2014 were as follows: Three Months Ended Nine Months Ended SALES 2015 2014 2015 2014 Southern Timber $34,797 $37,502 $103,009 $102,903 Pacific Northwest Timber 21,549 22,043 57,805 80,133 New Zealand Timber 41,065 48,479 121,482 130,786 Real Estate 35,232 26,689 65,968 66,236 Trading 19,014 15,116 59,500 80,027 Intersegment Eliminations — — — (3,924 ) Total $151,657 $149,829 $407,764 $456,161 Three Months Ended Nine Months Ended OPERATING INCOME 2015 2014 2015 2014 Southern Timber $10,504 $12,802 $34,694 $32,181 Pacific Northwest Timber 3,081 4,446 7,356 25,873 New Zealand Timber (915 ) 1,943 3,834 6,603 Real Estate 20,001 16,399 34,004 44,888 Trading 428 2,499 614 1,955 Corporate and other (5,320 ) (6,010 ) (18,452 ) (27,418 ) Total Operating Income $27,779 $32,079 62,050 84,082 Unallocated interest expense and other (9,139 ) ($11,300 ) (28,858 ) (42,983 ) Total income from continuing operations before income taxes $18,640 $20,779 $33,192 $41,099 Three Months Ended Nine Months Ended DEPRECIATION, DEPLETION AND AMORTIZATION 2015 2014 2015 2014 Southern Timber $14,404 $14,788 $41,356 $37,493 Pacific Northwest Timber 4,189 5,968 10,920 17,459 New Zealand Timber 7,021 9,314 22,207 23,477 Real Estate 6,269 3,807 11,087 11,140 Trading — — — — Corporate and other 75 123 214 747 Total $31,958 $34,000 $85,784 $90,316 Three Months Ended Nine 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 — 41 — 2,137 Real Estate 4,594 3,205 9,532 6,507 Trading — — — — Corporate and other — — — — Total $4,594 $3,246 $9,532 $8,644 |
DERIVATIVE FINANCIAL INSTRUME33
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables demonstrate the impact of the Company’s derivatives on the Consolidated Statements of Income and Comprehensive Income for the three and nine months ended September 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 ($289 ) ($2,537 ) Foreign currency option contracts Other comprehensive (loss) income (788 ) (2,227 ) Interest rate swaps Other comprehensive (loss) income (13,644 ) — Derivatives designated as a net investment hedge: Foreign currency exchange contract Other comprehensive (loss) income 1,151 — Foreign currency option contracts Other comprehensive (loss) income 2,084 — Derivatives not designated as hedging instruments: Foreign currency option contracts Other operating (income) expense 847 — Interest rate swaps Interest income and miscellaneous (expense), net (1,650 ) (1,765 ) Fuel hedge contracts Cost of sales (benefit) — (62 ) Nine Months Ended Income Statement Location 2015 2014 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other comprehensive (loss) income ($2,597 ) ($1,868 ) Foreign currency option contracts Other comprehensive (loss) income (4,127 ) (2,006 ) Interest rate swaps Other comprehensive (loss) income (13,644 ) — Derivatives designated as net investment hedges: Foreign currency exchange contract Other comprehensive (loss) income 4,258 — Foreign currency option contracts Other comprehensive (loss) income 2,084 — Derivatives not designated as hedging instruments: Foreign currency exchange contracts Other operating (income) expense — 25 Foreign currency option contracts Other operating (income) expense 1,394 7 Interest rate swaps Interest and miscellaneous (expense) income, net 4,923 (3,628 ) Fuel hedge contracts Cost of sales (benefit) — 163 |
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 September 30, 2015 December 31, 2014 Derivatives designated as cash flow hedges: Foreign currency exchange contracts $25,840 $28,540 Foreign currency option contracts 129,100 79,400 Interest rate swaps 350,000 — Derivatives designated as net investment hedges: Foreign currency exchange contract 22,320 27,419 Foreign currency option contracts 308,647 — Derivative not designated as a hedging instrument: Interest rate swaps 121,163 161,968 |
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) September 30, 2015 December 31, 2014 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Prepaid and other current assets $24 $132 Other assets — 59 Other current liabilities (2,677 ) (272 ) Other non-current liabilities (1,087 ) — Foreign currency option contracts Prepaid and other current assets 127 299 Other assets 218 198 Other current liabilities (4,222 ) (1,439 ) Other non-current liabilities (907 ) (196 ) Interest rate swaps Other non-current liabilities (13,644 ) — Derivatives designated as net investment hedges: Foreign currency exchange contract Prepaid and other current assets 4,035 — Other current liabilities — (223 ) Foreign currency option contracts Prepaid and other current assets 3,640 — Other current liabilities (1,556 ) — Derivative not designated as a hedging instrument: Interest rate swaps Other non-current liabilities (8,733 ) (7,247 ) Total derivative contracts: Prepaid and other current assets $7,826 $431 Other assets 218 257 Total derivative assets $8,044 $688 Other current liabilities (8,455 ) (1,934 ) Other non-current liabilities (24,371 ) (7,443 ) Total derivative liabilities ($32,826 ) ($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) | 9 Months Ended |
Sep. 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 September 30, 2015 and December 31, 2014 , using market information and what the Company believes to be appropriate valuation methodologies under generally accepted accounting principles: September 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 $65,755 $65,755 — $161,558 $161,558 — Restricted cash (a) 24,523 24,523 — 6,688 6,688 — Current maturities of long-term debt — — — (129,706 ) — (156,762 ) Long-term debt (791,233 ) — (791,495 ) (621,849 ) — (628,476 ) Interest rate swaps (b) (22,377 ) — (22,377 ) (7,247 ) — (7,247 ) Foreign currency exchange contracts (b) 295 — 295 (304 ) — (304 ) Foreign currency option contracts (b) (2,700 ) — (2,700 ) (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) | 9 Months Ended |
Sep. 30, 2015 | |
Guarantees [Abstract] | |
Schedule of Guarantor Obligations | As of September 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) 781 — Total financial commitments $19,720 $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 2016 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 September 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. |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Payments | At September 30, 2015, the future minimum payments under non-cancellable operating and timberland leases were as follows: Operating Leases Timberland Leases (a) Purchase Obligations (b) Total Remaining 2015 $458 $2,946 $2,434 $5,838 2016 1,658 9,278 8,200 19,136 2017 1,202 9,111 6,085 16,398 2018 539 7,515 5,556 13,610 2019 411 7,044 4,187 11,642 Thereafter 1,009 126,095 15,767 142,871 $5,277 $161,989 $42,229 $209,495 (a) The majority of timberland leases are subject to increases or decreases based on either the Consumer Price Index, Producer Price Index or market rates. (b) Purchase obligations include payments expected to be made on derivative financial instruments. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 9 Months Ended |
Sep. 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 $378 $3 $3 Interest cost 830 786 13 18 Expected return on plan assets (1,007 ) (1,135 ) — — Amortization of prior service cost 3 3 — — Amortization of losses 950 601 3 3 Net periodic benefit cost $1,147 $633 $19 $24 Pension Postretirement Nine Months Ended Nine Months Ended 2015 2014 2015 2014 Components of Net Periodic Benefit Cost Service cost $1,113 $3,545 $8 $328 Interest cost 2,489 9,921 39 423 Expected return on plan assets (3,020 ) (14,123 ) — — Amortization of prior service cost 10 572 — 8 Amortization of losses 2,799 5,942 9 248 Amortization of negative plan amendment — — — (267 ) Net periodic benefit cost (a) $3,391 $5,857 $56 $740 (a) Net periodic benefit cost for the nine months ended September 30, 2014 includes $4.0 million recorded in “Income from discontinued operations, net” on the Consolidated Statements of Income and Comprehensive Income. |
INVENTORY (Tables)
INVENTORY (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | As of September 30, 2015 and December 31, 2014 , Rayonier’s inventory was solely comprised of finished goods, as follows: September 30, 2015 December 31, 2014 Finished goods inventory Real estate inventory (a) $10,499 $4,932 Log inventory 4,007 3,451 Total inventory $14,506 $8,383 (a) Represents cost of HBU real estate (including capitalized development costs) expected to be sold within 12 months. |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | Rayonier’s debt consisted of the following at September 30, 2015 : September 30, 2015 Senior Notes due 2022 at a fixed interest rate of 3.75% $325,000 Term Credit Agreement borrowings due 2024 at a variable interest rate of 1.8% at September 30, 2015 170,000 Revolving Credit Facility borrowings due 2020 at a variable interest rate of 1.4% at September 30, 2015 67,000 Mortgage notes due 2017 at fixed interest rates of 4.35% 42,739 Solid waste bond due 2020 at a variable interest rate of 1.3% at September 30, 2015 15,000 New Zealand JV Revolving Credit Facility due 2016 at a variable interest rate of 4.83% at September 30, 2015 149,860 New Zealand JV noncontrolling interest shareholder loan at 0% interest rate 21,634 Total debt 791,233 Less: Current maturities of long-term debt — Long-term debt $791,233 |
Schedule of Maturities of Long-Term Debt | Principal payments due during the next five years and thereafter are as follows: 2015 — 2016 149,860 2017 (a) 42,000 2018 — 2019 — Thereafter 598,634 Total Debt $790,494 (a) The mortgage notes due in 2017 were recorded at a premium of $0.7 million as of September 30, 2015. Upon maturity the liability will be $42 million . |
ACCUMULATED OTHER COMPREHENSI40
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 9 Months Ended |
Sep. 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 nine months ended September 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 hedges 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 (43,420 ) 6,319 (19,776 ) (d) — (56,877 ) Amounts reclassified from accumulated other comprehensive loss — — 3,312 2,414 (c) 5,726 Net other comprehensive income/(loss) (43,420 ) 6,319 (16,464 ) 2,414 (51,151 ) Balance as of September 30, 2015 ($17,887 ) $6,174 ($18,012 ) ($26,251 ) ($55,976 ) (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 at December 31, 2014 due to the spin-off. 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 14 — Employee Benefit Plans for additional information. (d) Includes $13.6 million of other comprehensive loss related to interest rate swaps entered into in third quarter 2015. See Note 9 — Derivative Financial Instruments and Hedging Activities 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 nine months ended September 30, 2015 and September 30, 2014 : Details about accumulated other comprehensive income components Amount reclassified from accumulated other comprehensive income Affected line item in the income statement September 30, 2015 September 30, 2014 Realized loss (gain) on foreign currency exchange contracts $3,928 ($3,194 ) Other operating income, net Realized loss (gain) on foreign currency option contracts 3,149 (1,058 ) Other operating income, net Noncontrolling interest (2,477 ) 1,488 Comprehensive (loss) income attributable to noncontrolling interest Income tax (benefit) expense on loss from foreign currency contracts (1,288 ) 835 Income tax benefit Net loss (gain) on cash flow hedges reclassified from accumulated other comprehensive income 3,312 (1,929 ) Income tax expense on pension plan contributed to Rayonier Advanced Materials — 843 Income tax expense Net loss (gain) from accumulated other comprehensive income $3,312 ($1,086 ) |
OTHER OPERATING INCOME, NET (Ta
OTHER OPERATING INCOME, NET (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Income and Expenses [Abstract] | |
Interest and Other Income | Other operating income, net comprised the following: Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Lease income, primarily from hunting leases $4,349 $5,013 $14,348 $12,015 Other non-timber income 581 817 2,634 1,810 Foreign currency income (loss) (149 ) 4,304 67 4,292 Gain (loss) on sale or disposal of property and equipment 4 66 6 46 (Loss) gain on foreign currency exchange contracts (2,297 ) — (3,290 ) (32 ) Bankruptcy claim settlement — — — 5,779 Gain (loss) on sale of carbon credits (a) — — 352 (307 ) Miscellaneous income (expense), net 367 (1,056 ) 1,450 (2,695 ) Total $2,855 $9,144 $15,567 $20,908 (a) Loss in 2014 reflects surrender of carbon credit units. |
CONSOLIDATING FINANCIAL STATE42
CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
CONSOLIDATING FINANCIAL STATEMENTS [Abstract] | |
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 September 30, 2015 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated SALES — — $151,657 — $151,657 Costs and Expenses Cost of sales — — 116,044 — 116,044 Selling and general expenses — 4,412 6,277 — 10,689 Other operating expense (income), net — 16 (2,871 ) — (2,855 ) — 4,428 119,450 — 123,878 OPERATING (LOSS) INCOME — (4,428 ) 32,207 — 27,779 Interest expense (3,227 ) (2,240 ) (2,114 ) — (7,581 ) Interest and miscellaneous income (expense), net 1,980 583 (4,121 ) — (1,558 ) Equity in income from subsidiaries 20,916 26,647 — (47,563 ) — INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 19,669 20,562 25,972 (47,563 ) 18,640 Income tax benefit — 354 187 — 541 NET INCOME 19,669 20,916 26,159 (47,563 ) 19,181 Less: Net loss attributable to noncontrolling interest — — (488 ) — (488 ) NET INCOME ATTRIBUTABLE TO RAYONIER INC. 19,669 20,916 26,647 (47,563 ) 19,669 OTHER COMPREHENSIVE LOSS Foreign currency translation adjustment (8,662 ) (8,662 ) (13,370 ) 17,324 (13,370 ) Cash flow hedges, net of income tax (13,954 ) (13,954 ) (14,120 ) 27,908 (14,120 ) Amortization of pension and postretirement plans, net of income tax 890 890 117 (1,007 ) 890 Total other comprehensive loss (21,726 ) (21,726 ) (27,373 ) 44,225 (26,600 ) COMPREHENSIVE LOSS (2,057 ) (810 ) (1,214 ) (3,338 ) (7,419 ) Less: Comprehensive loss attributable to noncontrolling interest — — (5,363 ) — (5,363 ) COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. ($2,057 ) ($810 ) $4,149 ($3,338 ) ($2,056 ) CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended September 30, 2014 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated SALES — — $149,829 — $149,829 Costs and Expenses Cost of sales — — 118,088 — 118,088 Selling and general expenses — 3,488 5,318 — 8,806 Other operating income, net — (854 ) (8,290 ) — (9,144 ) — 2,634 115,116 — 117,750 OPERATING (LOSS) INCOME — (2,634 ) 34,713 — 32,079 Interest expense (3,685 ) (2,981 ) (2,900 ) — (9,566 ) Interest and miscellaneous income (expense), net 1,799 554 (4,087 ) — (1,734 ) Equity in income from subsidiaries 34,587 38,414 — (73,001 ) — INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 32,701 33,353 27,726 (73,001 ) 20,779 Income tax benefit — 1,234 10,046 — 11,280 NET INCOME 32,701 34,587 37,772 (73,001 ) 32,059 Less: Net loss attributable to noncontrolling interest — — (642 ) — (642 ) NET INCOME ATTRIBUTABLE TO RAYONIER INC. 32,701 34,587 38,414 (73,001 ) 32,701 OTHER COMPREHENSIVE LOSS Foreign currency translation adjustment (27,317 ) (27,317 ) (37,738 ) 54,495 (37,877 ) Cash flow hedges, net of income tax (2,270 ) (2,272 ) (3,494 ) 4,542 (3,494 ) Amortization of pension and postretirement plans, net of income tax 2,265 2,265 (4,120 ) 1,855 2,265 Total other comprehensive loss (27,322 ) (27,324 ) (45,352 ) 60,892 (39,106 ) COMPREHENSIVE INCOME (LOSS) 5,379 7,263 (7,580 ) (12,109 ) (7,047 ) Less: Comprehensive loss attributable to noncontrolling interest — — (12,295 ) (131 ) (12,426 ) COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. $5,379 $7,263 $4,715 ($11,978 ) $5,379 CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2015 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated SALES — — $407,764 — $407,764 Costs and Expenses Cost of sales — — 326,966 — 326,966 Selling and general expenses — 15,691 18,624 — 34,315 Other operating income, net — (445 ) (15,122 ) — (15,567 ) — 15,246 330,468 — 345,714 OPERATING (LOSS) INCOME — (15,246 ) 77,296 — 62,050 Interest expense (9,564 ) (7,304 ) (7,740 ) — (24,608 ) Interest and miscellaneous income (expense), net 5,787 1,956 (11,993 ) — (4,250 ) Equity in income from subsidiaries 39,657 58,010 — (97,667 ) — INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 35,880 37,416 57,563 (97,667 ) 33,192 Income tax benefit (expense) — 2,241 (932 ) — 1,309 NET INCOME 35,880 39,657 56,631 (97,667 ) 34,501 Less: Net loss attributable to noncontrolling interest — — (1,379 ) — (1,379 ) NET INCOME ATTRIBUTABLE TO RAYONIER INC. 35,880 39,657 58,010 (97,667 ) 35,880 OTHER COMPREHENSIVE LOSS Foreign currency translation adjustment (37,100 ) (37,100 ) (53,088 ) 74,201 (53,087 ) Cash flow hedges, net of income tax (16,465 ) (16,465 ) (17,983 ) 32,930 (17,983 ) Amortization of pension and postretirement plans, net of income tax 2,414 2,414 132 (2,546 ) 2,414 Total other comprehensive loss (51,151 ) (51,151 ) (70,939 ) 104,585 (68,656 ) COMPREHENSIVE LOSS (15,271 ) (11,494 ) (14,308 ) 6,918 (34,155 ) Less: Comprehensive loss attributable to noncontrolling interest — — (18,884 ) — (18,884 ) COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. ($15,271 ) ($11,494 ) $4,576 $6,918 ($15,271 ) CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2014 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- Consolidating Adjustments Total Consolidated SALES — — $456,161 — $456,161 Costs and Expenses Cost of sales — — 357,083 — 357,083 Selling and general expenses — 8,032 27,872 — 35,904 Other operating expense (income), net — 3,094 (24,002 ) — (20,908 ) — 11,126 360,953 — 372,079 OPERATING (LOSS) INCOME — (11,126 ) 95,208 — 84,082 Interest expense (10,074 ) (21,121 ) (4,657 ) — (35,852 ) Interest and miscellaneous income (expense), net 7,230 (3,780 ) (10,581 ) — (7,131 ) Equity in income from subsidiaries 93,324 121,047 — (214,371 ) — INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 90,480 85,020 79,970 (214,371 ) 41,099 Income tax benefit (expense) — 8,304 (2,985 ) — 5,319 INCOME FROM CONTINUING OPERATIONS 90,480 93,324 76,985 (214,371 ) 46,418 DISCONTINUED OPERATIONS, NET Income from discontinued operations, net of income tax — — 43,092 — 43,092 NET INCOME 90,480 93,324 120,077 (214,371 ) 89,510 Less: Net loss attributable to noncontrolling interest — — (970 ) — (970 ) NET INCOME ATTRIBUTABLE TO RAYONIER INC. 90,480 93,324 121,047 (214,371 ) 90,480 OTHER COMPREHENSIVE INCOME Foreign currency translation adjustment (11,770 ) (11,770 ) (16,426 ) 23,540 (16,426 ) Cash flow hedges, net of income tax (1,756 ) (1,758 ) (2,703 ) 3,514 (2,703 ) Amortization of pension and postretirement plans, net of income tax 63,235 63,235 90,214 (153,449 ) 63,235 Total other comprehensive income 49,709 49,707 71,085 (126,395 ) 44,106 COMPREHENSIVE INCOME 140,189 143,031 191,162 (340,766 ) 133,616 Less: Comprehensive income attributable to noncontrolling interest — — (6,573 ) — (6,573 ) COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. $140,189 $143,031 $197,735 ($340,766 ) $140,189 |
Schedule of Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS As of September 30, 2015 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $12,955 $10,760 $42,040 — $65,755 Accounts receivable, less allowance for doubtful accounts — 143 19,153 — 19,296 Inventory — — 14,506 — 14,506 Prepaid and other current assets — 11,124 12,942 — 24,066 Total current assets 12,955 22,027 88,641 — 123,623 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — 2,038,032 — 2,038,032 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS — 67,274 — 67,274 NET PROPERTY, PLANT AND EQUIPMENT — 377 5,780 — 6,157 INVESTMENT IN SUBSIDIARIES 1,357,910 2,213,466 — (3,571,376 ) — INTERCOMPANY NOTES RECEIVABLE 266,149 (2,914 ) — (263,235 ) — OTHER ASSETS 2,396 24,599 52,379 — 79,374 TOTAL ASSETS $1,639,410 $2,257,555 $2,252,106 ($3,834,611 ) $2,314,460 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable — $1,437 $17,864 — $19,301 Accrued taxes — 13 17,225 — 17,238 Accrued payroll and benefits — 3,181 2,492 — 5,673 Accrued interest 5,990 500 37,782 (35,329 ) 8,943 Other current liabilities — 14,031 16,169 — 30,200 Total current liabilities 5,990 19,162 91,532 (35,329 ) 81,355 LONG-TERM DEBT 325,000 252,000 214,233 — 791,233 PENSION AND OTHER POSTRETIREMENT BENEFITS — 34,283 (684 ) — 33,599 OTHER NON-CURRENT LIABILITIES — 20,288 11,768 — 32,056 INTERCOMPANY PAYABLE — 573,912 (257,486 ) (316,426 ) — TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,308,420 1,357,910 2,124,946 (3,482,856 ) 1,308,420 Noncontrolling interest — — 67,797 — 67,797 TOTAL SHAREHOLDERS’ EQUITY 1,308,420 1,357,910 2,192,743 (3,482,856 ) 1,376,217 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,639,410 $2,257,555 $2,252,106 ($3,834,611 ) $2,314,460 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 Nine Months Ended September 30, 2015 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated CASH PROVIDED BY OPERATING ACTIVITIES $77,316 $92,414 $64,901 ($91,228 ) $143,403 INVESTING ACTIVITIES Capital expenditures — (78 ) (38,439 ) — (38,517 ) Real estate development costs — — (1,745 ) — (1,745 ) Purchase of timberlands — — (88,466 ) — (88,466 ) Change in restricted cash — — (17,835 ) — (17,835 ) Investment in Subsidiaries — (75,946 ) — 75,946 — Other — — 3,692 — 3,692 CASH USED FOR INVESTING ACTIVITIES — (76,024 ) (142,793 ) 75,946 (142,871 ) FINANCING ACTIVITIES Issuance of debt — 374,000 5,027 — 379,027 Repayment of debt — (294,472 ) (6,399 ) — (300,871 ) Dividends paid (94,280 ) — — — (94,280 ) Proceeds from the issuance of common shares 1,322 — — — 1,322 Repurchase of common shares (73,621 ) — — — (73,621 ) Debt issuance costs — (1,678 ) — — (1,678 ) Intercompany distributions — (91,585 ) 76,303 15,282 — CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES (166,579 ) (13,735 ) 74,931 15,282 (90,101 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH — — (6,234 ) — (6,234 ) CASH AND CASH EQUIVALENTS Change in cash and cash equivalents (89,263 ) 2,655 (9,195 ) — (95,803 ) Balance, beginning of year 102,218 8,105 51,235 — 161,558 Balance, end of period $12,955 $10,760 $42,040 — $65,755 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 2014 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated CASH PROVIDED BY OPERATING ACTIVITIES $219,988 $238,010 $57,801 ($231,730 ) $284,069 INVESTING ACTIVITIES Capital expenditures — (400 ) (44,842 ) — (45,242 ) Capital expenditures from discontinued operations — — (60,442 ) — (60,442 ) Real estate development costs — — (3,314 ) — (3,314 ) Purchase of timberlands — — (93,189 ) — (93,189 ) Change in restricted cash — — 47,318 — 47,318 Investment in Subsidiaries — 855,014 — (855,014 ) — Other — — (478 ) — (478 ) CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES — 854,614 (154,947 ) (855,014 ) (155,347 ) FINANCING ACTIVITIES Issuance of debt — 185,000 1,110,163 — 1,295,163 Repayment of debt — (1,002,500 ) (170,549 ) — (1,173,049 ) Dividends paid (225,877 ) — — — (225,877 ) Proceeds from the issuance of common shares 4,645 — — — 4,645 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 (31,420 ) — — — (31,420 ) Issuance of intercompany notes (11,400 ) — 11,400 — — Intercompany distributions — (234,659 ) (852,085 ) 1,086,744 — Other — — (680 ) — (680 ) CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES (265,886 ) (1,052,159 ) 85,869 1,086,744 (145,432 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH — — (103 ) — (103 ) CASH AND CASH EQUIVALENTS Change in cash and cash equivalents (45,898 ) 40,465 (11,380 ) — (16,813 ) Balance, beginning of year 130,181 11,023 58,440 — 199,644 Balance, end of period $84,283 $51,488 $47,060 — $182,831 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 19, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 |
Line of Credit Facility [Line Items] | ||||||
Dividends declared (in dollars per share) | $ 0.25 | $ 0.80 | $ 0.75 | $ 1.78 | $ 2.03 | |
Revolving Credit Facility [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Capitalized debt costs | $ 0.6 | $ 0.6 | ||||
Non Revolving Credit Facility [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Capitalized debt costs | $ 3.4 | $ 3.4 | ||||
Subsequent Event [Member] | ||||||
Line of Credit Facility [Line Items] | ||||||
Dividends declared (in dollars per share) | $ 0.25 |
DISCONTINUED OPERATIONS - Narra
DISCONTINUED OPERATIONS - Narrative (Details) $ in Thousands | Jun. 27, 2014USD ($)companyshares | Sep. 30, 2015USD ($)T | Sep. 30, 2014USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Rayonier Advanced Materials debt | $ 791,233 | ||
Change in restricted cash | (17,835) | $ 47,318 | |
Payments of dividends | $ 63,200 | $ 94,280 | $ 225,877 |
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 | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income tax expense | $ 0 | $ 0 | $ (21,231) | |
Income from discontinued operations, net | $ 0 | 0 | $ 0 | 43,092 |
Performance Fibers business [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Sales | 0 | 456,180 | ||
Cost of sales and other | 0 | (368,868) | ||
Transaction expenses | 0 | (22,989) | ||
Income from discontinued operations before income taxes | 0 | 64,323 | ||
Income tax expense | 0 | (21,231) | ||
Income from discontinued operations, net | $ 0 | $ 43,092 |
DISCONTINUED OPERATIONS - Inter
DISCONTINUED OPERATIONS - Interest Expense Allocated to Discontinued Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
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 | $ 0 | $ (4,205) |
DISCONTINUED OPERATIONS - Depre
DISCONTINUED OPERATIONS - Depreciation, Amortization, and Capital Expenditures (Details) - Performance Fibers business [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Depreciation and amortization | $ 0 | $ 37,985 |
Capital expenditures | $ 0 | $ 60,443 |
DISCONTINUED OPERATIONS - Elimi
DISCONTINUED OPERATIONS - Elimination of Intercompany Hardwood Purchases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2014 | Sep. 30, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Hardwood purchases | $ 0 | $ 3,935 |
EARNINGS PER COMMON SHARE - Sch
EARNINGS PER COMMON SHARE - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Income amounts attributable to Rayonier Inc. | |||||
Income from continuing operations | $ 19,181 | $ 32,059 | $ 34,501 | $ 46,418 | |
Less: Net loss from continuing operations attributable to noncontrolling interest | (488) | (642) | (1,379) | (970) | |
Income from continuing operations attributable to Rayonier Inc. | 19,669 | 32,701 | 35,880 | 47,388 | |
Income from discontinued operations, net, attributable to Rayonier Inc. | 0 | 0 | 0 | 43,092 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | $ 19,669 | $ 32,701 | $ 35,880 | $ 90,480 | |
Shares used for determining basic earnings per common share (in shares) | 125,143,706 | 126,501,837 | 126,125,802 | 126,428,279 | |
Dilutive effect of: | |||||
Stock options (in shares) | 91,495 | 320,839 | 129,906 | 347,721 | |
Performance and restricted shares (in shares) | 31,051 | 37,682 | 37,064 | 165,627 | |
Assumed conversion of senior exchangeable notes (in shares) | [1] | 39,720 | 1,692,343 | 477,931 | 2,395,698 |
Assumed conversion of warrants (in shares) | [1] | 0 | 1,237,812 | 0 | 2,344,335 |
Shares used for determining diluted earnings per common share (in shares) | 125,305,972 | 129,790,513 | 126,770,703 | 131,681,660 | |
Basic earnings per common share attributable to Rayonier Inc.: | |||||
Continuing Operations, (in dollars per share) | $ 0.16 | $ 0.26 | $ 0.28 | $ 0.38 | |
Discontinued Operations, (in dollars per share) | 0 | 0 | 0 | 0.34 | |
Net Income, Basic (in dollars per share) | 0.16 | 0.26 | 0.28 | 0.72 | |
Diluted earnings per common share attributable to Rayonier Inc.: | |||||
Continuing Operations, (in dollars per share) | 0.16 | 0.25 | 0.28 | 0.36 | |
Discontinued Operations, (in dollars per share) | 0 | 0 | 0 | 0.33 | |
Net Income, Diluted (in dollars per share) | $ 0.16 | $ 0.25 | $ 0.28 | $ 0.69 | |
[1] | Rayonier did not issue additional shares upon maturity of the Senior Exchangeable Notes due August 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 conversion of the hedges is excluded since they are anti-dilutive. The dilutive effect of the 2015 Notes was included for the portion of the periods presented in which the 2015 Notes were outstanding. |
EARNINGS PER COMMON SHARE - S50
EARNINGS PER COMMON SHARE - Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - $ / shares | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 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 | 1,034,269 | 2,066,905 | 1,384,513 | 2,881,548 | |
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 | 994,549 | 374,562 | 906,582 | 485,850 | |
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 | [1] | 39,720 | 1,692,343 | 477,931 | 2,395,698 |
[1] | Rayonier did not issue additional shares upon maturity of the Senior Exchangeable Notes due August 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 conversion of the hedges is excluded since they are anti-dilutive. The dilutive effect of the 2015 Notes was included for the portion of the periods presented in which the 2015 Notes were outstanding. |
INCOME TAXES - Provision for In
INCOME TAXES - Provision for Income Taxes from Continuing Operations - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | $ 5.8 | |||
U.S. federal statutory tax rate | 35.00% | 35.00% | 35.00% | 35.00% |
Income Tax Expense (Benefit) Due to Expired Unrecognized Tax Benefit Liability | $ 1.8 |
INCOME TAXES - Schedule of Effe
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense at federal statutory rate | $ 6,524 | $ 7,273 | $ 11,617 | $ 14,385 |
Income tax (benefit) expense at federal statutory rate (percent) | (35.00%) | (35.00%) | (35.00%) | (35.00%) |
REIT income and taxable losses | $ (9,259) | $ (16,673) | $ (16,260) | $ (30,572) |
REIT income and taxable losses (percent) | (49.60%) | (80.20%) | (48.90%) | (74.40%) |
Foreign operations | $ (1,466) | $ (44) | $ (3,029) | $ (88) |
Foreign operations (percent) | (7.90%) | (0.20%) | (9.10%) | (0.20%) |
Loss valuation allowance | $ 2,742 | $ 0 | $ 5,360 | $ 0 |
Net operating loss valuation allowance (percent) | 14.70% | 0.00% | 16.10% | 0.00% |
Other | $ 90 | $ 99 | $ 175 | $ 196 |
Other (percent) | 0.50% | 0.40% | 0.50% | 0.50% |
Income tax benefit before discrete items | $ (1,369) | $ (9,345) | $ (2,137) | $ (16,079) |
Income tax (benefit) expense before discrete items (percent) | (7.30%) | (45.00%) | (6.40%) | (39.10%) |
CBPCa valuation allowance | $ 997 | $ (990) | $ 997 | $ 14,584 |
CBPC valuation allowance (percent) | 5.30% | (4.80%) | 3.00% | 35.50% |
Effective income tax rate reconciliation, uncertain tax positions, amount | $ 0 | $ (1,830) | $ 0 | $ (1,830) |
Effective income tax rate reconciliation, uncertain tax positions, percent | (0.00%) | (8.80%) | (0.00%) | (4.50%) |
Effective income tax reconciliation, return to accrual adjustments, change in amount | $ (169) | $ 885 | $ (169) | $ 885 |
Effective income tax reconciliation, return to accrual adjustments, rate | (0.90%) | 4.30% | (0.50%) | 2.20% |
Spin-off related costs | $ 0 | $ 797 | ||
Spin-off related costs (percent) | (0.00%) | 1.90% | ||
Deferred tax inventory valuations | $ 0 | $ (3,293) | ||
Deferred tax inventory valuations (percent) | (0.00%) | (8.00%) | ||
Other | $ 0 | $ (383) | ||
Other (percent) | 0.00% | (0.90%) | ||
Income tax benefit as reported for continuing operations | $ (541) | $ (11,280) | $ (1,309) | $ (5,319) |
Income tax expense as reported for continuing operations (percent) | (2.90%) | (54.30%) | (3.90%) | (12.90%) |
INCOME TAXES - Provision for 53
INCOME TAXES - Provision for Income Taxes from Discontinued Operations Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Loss Carryforwards [Line Items] | ||||
Income tax expense related to discontinued operations | $ 0 | $ 0 | $ 21,231 | |
Performance Fibers business [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Income tax expense related to discontinued operations | $ 0 | $ 21,231 |
HIGHER AND BETTER USE TIMBERL54
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 | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 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 | (5,698) | ||
Timber depletion from harvesting activities and basis of timber sold in real estate sales | (2,876) | ||
Capitalized real estate development costs | [2] | 2,029 | |
Capital expenditures (silviculture) | 121 | ||
Inventory, Real Estate, Land and Land Development Costs, Other | (77,433) | ||
Total Balance, Ending Balance | 77,773 | ||
Less: Current portion, Ending Balance | [1] | (10,499) | |
Non-current portion, Ending Balance | 67,274 | ||
Capitalized real estate development costs, cash outflows | 1,745 | $ 3,314 | |
Capitalized real estate development costs, change in accrued spending | 284 | ||
Inventory, Real Estate, Land and Land Development Costs, Acquisitions | 0 | ||
Inventory, Real Estate, Land and Land Development Costs, Transfers | 1,861 | ||
Inventory, Real Estate, Land and Land Development Costs, Other | 29 | ||
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 | (5,640) | ||
Timber depletion from harvesting activities and basis of timber sold in real estate sales | (2,876) | ||
Capitalized real estate development costs | [2] | 0 | |
Capital expenditures (silviculture) | 121 | ||
Inventory, Real Estate, Land and Land Development Costs, Other | (65,959) | ||
Total Balance, Ending Balance | 64,300 | ||
Less: Current portion, Ending Balance | [1] | (5,449) | |
Non-current portion, Ending Balance | 58,851 | ||
Inventory, Real Estate, Land and Land Development Costs, Acquisitions | 0 | ||
Inventory, Real Estate, Land and Land Development Costs, Transfers | 1,861 | ||
Inventory, Real Estate, Land and Land Development Costs, Other | 0 | ||
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 | (58) | ||
Timber depletion from harvesting activities and basis of timber sold in real estate sales | 0 | ||
Capitalized real estate development costs | [2] | 2,029 | |
Capital expenditures (silviculture) | 0 | ||
Inventory, Real Estate, Land and Land Development Costs, Other | (11,474) | ||
Total Balance, Ending Balance | 13,473 | ||
Less: Current portion, Ending Balance | [1] | (5,050) | |
Non-current portion, Ending Balance | 8,423 | ||
Inventory, Real Estate, Land and Land Development Costs, Acquisitions | 0 | ||
Inventory, Real Estate, Land and Land Development Costs, Transfers | 0 | ||
Inventory, Real Estate, Land and Land Development Costs, Other | $ 29 | ||
[1] | The current portion of Higher and Better Use Timberlands and Real Estate Development Costs is recorded in Inventory. See Note 15 — Inventory for additional information. | ||
[2] | Capitalized real estate development costs for the nine months ended September 30, 2015 of $2,029,000 consisted of $1,745,000 in cash outflows and a $284,000 change in accrued spending. |
RESTRICTED DEPOSITS (Details)
RESTRICTED DEPOSITS (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 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 | $ 24.5 | $ 6.7 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 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) | $ 19,181 | $ 32,059 | 34,501 | 89,510 | 97,846 | ||||
Dividends ($0.75 and $2.03 per share for the nine months ended June 30, 2015 and the year ended December 31, 2014, respectively) | (94,262) | (256,861) | |||||||
Contribution to Rayonier Advanced Materials | 19,130 | ||||||||
Adjustments to Rayonier Advanced Materials | 884 | (8,226) | [1] | ||||||
Issuance of shares under incentive stock plans | 1,322 | 5,579 | |||||||
Stock-based compensation | 3,522 | 7,869 | |||||||
Tax deficiency on stock-based compensation | (272) | (791) | |||||||
Repurchase of common shares | (75,973) | [2],[3] | (1,858) | ||||||
Net gain (loss) from pension and postretirement plans | 2,414 | (24,147) | |||||||
Noncontrolling interest redemption of shares | (931) | ||||||||
Foreign currency translation adjustment | (13,370) | (37,877) | (53,087) | (16,426) | (15,847) | ||||
Cash Flow Hedges | (14,120) | $ (3,494) | (17,983) | $ (2,703) | (1,855) | ||||
Ending balance | $ 1,376,217 | $ 1,376,217 | $ 1,575,151 | ||||||
Dividends [Abstract] | |||||||||
Dividends declared per share | $ 0.25 | $ 0.80 | $ 0.75 | $ 1.78 | $ 2.03 | ||||
Average price of common stock repurchased (in dollars per share) | $ 23.65 | $ 25.94 | |||||||
Number of common shares outstanding | 123,767,680 | 123,767,680 | 126,773,097 | ||||||
Remaining share repurchase authorization amount | $ 24,100 | $ 24,100 | |||||||
Common shares, shares issued | 123,767,680 | 123,767,680 | 126,773,097 | ||||||
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] | 167,021 | 561,701 | ||||||
Issuance of shares under incentive stock plans | $ 1,322 | $ 5,579 | |||||||
Stock-based compensation | 3,522 | 7,869 | |||||||
Tax deficiency on stock-based compensation | $ (272) | $ (791) | |||||||
Repurchase of common shares (in shares) | [4] | (3,172,438) | [2],[3] | (46,474) | |||||
Repurchase of common shares | $ (100) | [2],[3] | $ (1,858) | ||||||
Ending balance (in shares) | [4] | 123,767,680 | 123,767,680 | 126,773,097 | |||||
Ending balance | $ 707,070 | $ 707,070 | $ 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) | 35,880 | 99,337 | |||||||
Dividends ($0.75 and $2.03 per share for the nine months ended June 30, 2015 and the year ended December 31, 2014, respectively) | (94,262) | (256,861) | |||||||
Contribution to Rayonier Advanced Materials | (61,318) | ||||||||
Adjustments to Rayonier Advanced Materials | 884 | (5,670) | [1] | ||||||
Repurchase of common shares | (75,873) | ||||||||
Ending balance | 657,326 | 657,326 | 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 | 2,414 | (24,147) | |||||||
Foreign currency translation adjustment | (37,101) | (11,526) | |||||||
Cash Flow Hedges | (16,464) | (1,206) | |||||||
Ending balance | (55,976) | (55,976) | (4,825) | ||||||
Non-controlling Interest [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning balance | 86,681 | $ 94,073 | 94,073 | ||||||
Net income (loss) | (1,379) | (1,491) | |||||||
Noncontrolling interest redemption of shares | (931) | ||||||||
Foreign currency translation adjustment | (15,986) | (4,321) | |||||||
Cash Flow Hedges | (1,519) | (649) | |||||||
Ending balance | 67,797 | 67,797 | $ 86,681 | ||||||
Common Shares [Member] | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Repurchase of common shares | (65,200) | $ (10,700) | |||||||
Dividends [Abstract] | |||||||||
Common Stock, Purchased from Employees in Non-open Market Transactions | $ 100 | $ 100 | |||||||
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 and third quarter of 2015 the Company repurchased approximately $10.7 million and $65.2 million, respectively of common stock at average prices of $25.94 and $23.65 per share. As of September 30, 2015, the Company had 123.8 million shares of common stock outstanding and $24.1 million remaining under its share repurchase authorization announced in June 2015. | ||||||||
[3] | Includes $0.1 million of 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 $0.00 par value. |
SEGMENT AND GEOGRAPHICAL INFO57
SEGMENT AND GEOGRAPHICAL INFORMATION - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
SALES | $ 151,657 | $ 149,829 | $ 407,764 | $ 456,161 |
OPERATING INCOME | 27,779 | 32,079 | 62,050 | 84,082 |
Unallocated Interest Expense and Other | (9,139) | (11,300) | (28,858) | (42,983) |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 18,640 | 20,779 | 33,192 | 41,099 |
DEPRECIATION, DEPLETION AND AMORTIZATION | 31,958 | 34,000 | 85,784 | 90,316 |
NON-CASH COST OF LAND SOLD AND REAL ESTATE COSTS RECOVERED UPON SALE | 4,594 | 3,246 | 9,532 | 8,644 |
Southern Timber [Member] | ||||
Segment Reporting Information [Line Items] | ||||
SALES | 34,797 | 37,502 | 103,009 | 102,903 |
OPERATING INCOME | 10,504 | 12,802 | 34,694 | 32,181 |
DEPRECIATION, DEPLETION AND AMORTIZATION | 14,404 | 14,788 | 41,356 | 37,493 |
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 | 21,549 | 22,043 | 57,805 | 80,133 |
OPERATING INCOME | 3,081 | 4,446 | 7,356 | 25,873 |
DEPRECIATION, DEPLETION AND AMORTIZATION | 4,189 | 5,968 | 10,920 | 17,459 |
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 | 41,065 | 48,479 | 121,482 | 130,786 |
OPERATING INCOME | (915) | 1,943 | 3,834 | 6,603 |
DEPRECIATION, DEPLETION AND AMORTIZATION | 7,021 | 9,314 | 22,207 | 23,477 |
NON-CASH COST OF LAND SOLD AND REAL ESTATE COSTS RECOVERED UPON SALE | 0 | 41 | 0 | 2,137 |
Real Estate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
SALES | 35,232 | 26,689 | 65,968 | 66,236 |
OPERATING INCOME | 20,001 | 16,399 | 34,004 | 44,888 |
DEPRECIATION, DEPLETION AND AMORTIZATION | 6,269 | 3,807 | 11,087 | 11,140 |
NON-CASH COST OF LAND SOLD AND REAL ESTATE COSTS RECOVERED UPON SALE | 4,594 | 3,205 | 9,532 | 6,507 |
Trading [Member] | ||||
Segment Reporting Information [Line Items] | ||||
SALES | 19,014 | 15,116 | 59,500 | 80,027 |
OPERATING INCOME | 428 | 2,499 | 614 | 1,955 |
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 | 0 | 0 | (3,924) |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
OPERATING INCOME | (5,320) | (6,010) | (18,452) | (27,418) |
DEPRECIATION, DEPLETION AND AMORTIZATION | 75 | 123 | 214 | 747 |
NON-CASH COST OF LAND SOLD AND REAL ESTATE COSTS RECOVERED UPON SALE | $ 0 | $ 0 | $ 0 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME58
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | |||
Aug. 31, 2015 | Sep. 30, 2015 | Aug. 01, 2015 | Dec. 31, 2014 | Dec. 01, 2014 | |
Derivative [Line Items] | |||||
Notional Amount | $ 309,000 | $ 22,000 | |||
Derivative, Basis Spread on Variable Rate | 1.625% | ||||
Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 170,000 | ||||
Derivative, term of contract | 9 years | ||||
Derivative, fixed interest rate | 2.20% | ||||
Forward Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 180,000 | ||||
Derivative, term of contract | 9 years | ||||
Derivative, fixed interest rate | 2.35% | ||||
Not Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | |||||
Derivative [Line Items] | |||||
Notional Amount | $ 121,163 | $ 161,968 | |||
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 | (4,900) | ||||
Designated as Hedging Instrument [Member] | Interest Rate Swap [Member] | Cash Flow Hedging [Member] | |||||
Derivative [Line Items] | |||||
Notional Amount | 350,000 | $ 0 | |||
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] | |||||
Notional Amount | $ 121,000 | ||||
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 INSTRUME59
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Income Statement Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Designated as Hedging Instrument [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 | $ 13,600 | |||
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 | (289) | $ (2,537) | $ (2,597) | $ (1,868) |
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 | 1,151 | 0 | 4,258 | 0 |
Designated as Hedging Instrument [Member] | Foreign currency option contracts [Member] | Cash Flow Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Designated hedged item, gain (loss) recognized in other comprehensive income | (788) | (2,227) | ||
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 | (4,127) | (2,006) | ||
Designated as Hedging Instrument [Member] | Foreign currency option 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 | 2,084 | 0 | 2,084 | 0 |
Designated as Hedging Instrument [Member] | Interest rate swaps [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 | (13,644) | 0 | (13,644) | 0 |
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 (loss) recognized in income | 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 (loss) recognized in income | 847 | 0 | 1,394 | 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 (loss) recognized in income | 1,650 | 1,765 | (4,923) | 3,628 |
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 (loss) recognized in income | $ 0 | $ (62) | $ 0 | $ 163 |
DERIVATIVE FINANCIAL INSTRUME60
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Notional Amounts (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Aug. 31, 2015 | Aug. 01, 2015 | Dec. 31, 2014 | Dec. 01, 2014 |
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | $ 309,000 | $ 22,000 | |||
Interest rate swaps [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | $ 170,000 | ||||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign currency exchange contracts [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | $ 25,840 | $ 28,540 | |||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign currency option contracts [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 129,100 | 79,400 | |||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest rate swaps [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 350,000 | 0 | |||
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | Foreign currency exchange contracts [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 22,320 | 27,419 | |||
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | Foreign currency option contracts [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | 308,647 | 0 | |||
Not Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Notional Amount | $ 121,163 | $ 161,968 |
DERIVATIVE FINANCIAL INSTRUME61
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Balance Sheet Location (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Aug. 31, 2015 | Aug. 01, 2015 | Dec. 31, 2014 | Dec. 01, 2014 | |
Derivatives, Fair Value [Line Items] | ||||||
Notional Amount | $ 309,000 | $ 22,000 | ||||
Fair value, derivative asset | [1] | $ 8,044 | $ 688 | |||
Fair value, derivative liability | [1] | (32,826) | (9,377) | |||
Prepaid and other current assets [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Fair value, derivative asset | [1] | 7,826 | 431 | |||
Other assets [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Fair value, derivative asset | [1] | 218 | 257 | |||
Other current liabilities [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Fair value, derivative liability | [1] | (8,455) | (1,934) | |||
Other non-current liabilities [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Fair value, derivative liability | [1] | (24,371) | (7,443) | |||
Interest rate swaps [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional Amount | $ 170,000 | |||||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign currency exchange contracts [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional Amount | 25,840 | 28,540 | ||||
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] | 24 | 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] | (2,677) | (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] | (1,087) | 0 | |||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Foreign currency option contracts [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional Amount | 129,100 | 79,400 | ||||
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] | 127 | 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] | 218 | 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] | (4,222) | (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] | (907) | (196) | |||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest rate swaps [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional Amount | 350,000 | 0 | ||||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Interest rate swaps [Member] | Other non-current liabilities [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Fair value, derivative liability | [1] | (13,644) | 0 | |||
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | Foreign currency exchange contracts [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional Amount | 22,320 | 27,419 | ||||
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] | 4,035 | 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) | |||
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | Foreign currency option contracts [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional Amount | 308,647 | 0 | ||||
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | Foreign currency option contracts [Member] | Prepaid and other current assets [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Fair value, derivative asset | [1] | 3,640 | 0 | |||
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | Foreign currency option contracts [Member] | Other current liabilities [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Fair value, derivative liability | [1] | (1,556) | 0 | |||
Not Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Notional Amount | 121,163 | 161,968 | ||||
Not Designated as Hedging Instrument [Member] | Interest rate swaps [Member] | Other non-current liabilities [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Fair value, derivative liability | [1] | $ (8,733) | $ (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 | Sep. 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 | $ 65,755 | $ 161,558 | |
Restricted cash | [1] | 24,523 | 6,688 |
Current maturities of long-term debt | 0 | (129,706) | |
Long-term debt | (791,233) | (621,849) | |
Carrying Value [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swaps | [2] | (22,377) | (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 exchange contracts | [2] | 295 | |
Foreign currency option contracts | [2] | 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 option contracts | [2] | (2,700) | (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 | 65,755 | 161,558 | |
Restricted cash | [1] | 24,523 | 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] | Interest Rate Swap [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 exchange contracts | [2] | 0 | |
Foreign currency option contracts | [2] | 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 option 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 | 0 | (156,762) | |
Long-term debt | (791,495) | (628,476) | |
Estimate of Fair Value, Fair Value Disclosure [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Swap [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Interest rate swaps | [2] | (22,377) | (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 exchange contracts | [2] | 295 | |
Foreign currency option contracts | [2] | 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 option contracts | [2] | $ (2,700) | $ (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 - Fai63
FAIR VALUE MEASUREMENTS - Fair Value Measurements Methods and Assumptions (Details) | 9 Months Ended |
Sep. 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) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015USD ($) | ||
Guarantor Obligations [Line Items] | ||
Maximum Potential Payment | $ 19,720 | |
Carrying Amount of Associated Liability | 15,043 | |
Standby letters of credit [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum Potential Payment | 16,685 | [1] |
Carrying Amount of Associated Liability | 15,000 | [1] |
Guarantor obligations collateral for industrial revenue bonds | $ 15,000 | |
Guarantor obligations, term | various dates during 2016 | |
Guarantees [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum Potential Payment | $ 2,254 | [2] |
Carrying Amount of Associated Liability | $ 43 | [2] |
Variable interest entity recorded liability for performance obligation | de minimis liability | |
Surety bonds [Member] | ||
Guarantor Obligations [Line Items] | ||
Maximum Potential Payment | $ 781 | [3] |
Carrying Amount of Associated Liability | $ 0 | [3] |
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 2016 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 September 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. |
COMMITMENTS (Narrative) (Detail
COMMITMENTS (Narrative) (Details) - Timber Properties [Member] | 3 Months Ended |
Sep. 30, 2015 | |
UNITED STATES | Minimum [Member] | |
Loss Contingencies [Line Items] | |
Contract terms | 30 years |
UNITED STATES | Maximum [Member] | |
Loss Contingencies [Line Items] | |
Contract terms | 65 years |
NEW ZEALAND | Minimum [Member] | |
Loss Contingencies [Line Items] | |
Contract terms | 30 years |
NEW ZEALAND | Maximum [Member] | |
Loss Contingencies [Line Items] | |
Contract terms | 99 years |
COMMITMENTS (Future Minimum Pay
COMMITMENTS (Future Minimum Payments) (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Loss Contingencies [Line Items] | |
Recorded Unconditional Purchase Obligation, Due in Remainder of Fiscal Year | $ 2,434 |
Contractual Obligation, Future Minimum Payments Due, Remainder of Fiscal Year | 5,838 |
Purchase obligation, 2016 | 8,200 |
Purchase obligation, 2017 | 6,085 |
Purchase obligation, 2018 | 5,556 |
Purchase obligation, 2019 | 4,187 |
Purchase obligation, thereafter | 15,767 |
Purchase obligation, total | 42,229 |
Total, 2016 | 19,136 |
Total, 2017 | 16,398 |
Total, 2018 | 13,610 |
Total, 2019 | 11,642 |
Total, thereafter | 142,871 |
Total | 209,495 |
Buildings, Machinery and Equipment [Member] | |
Loss Contingencies [Line Items] | |
Operating Leases, Future Minimum Payments, Remainder of Fiscal Year | 458 |
Operating leases, 2016 | 1,658 |
Operating leases 2017 | 1,202 |
Operating leases, 2018 | 539 |
Operating leases, 2019 | 411 |
Operating leases, thereafter | 1,009 |
Operating leases, total | 5,277 |
Timber Properties [Member] | |
Loss Contingencies [Line Items] | |
Operating leases, remaining 2015 | 2,946 |
Operating leases, 2016 | 9,278 |
Operating leases 2017 | 9,111 |
Operating leases, 2018 | 7,515 |
Operating leases, 2019 | 7,044 |
Operating leases, thereafter | 126,095 |
Operating leases, total | $ 161,989 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) | Jan. 09, 2015claimplaintiff | Nov. 10, 2014claim |
Commitments and Contingencies Disclosure [Abstract] | ||
Number of claims filed | 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 | Sep. 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 | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Pension [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | $ 371 | $ 378 | $ 1,113 | $ 3,545 | |
Interest cost | 830 | 786 | 2,489 | 9,921 | |
Expected return on plan assets | (1,007) | (1,135) | (3,020) | (14,123) | |
Amortization of prior service cost | 3 | 3 | 10 | 572 | |
Amortization of losses | 950 | 601 | 2,799 | 5,942 | |
Amortization of negative plan amendment | 0 | 0 | |||
Net periodic benefit cost | [1] | 1,147 | 633 | 3,391 | 5,857 |
Postretirement [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 3 | 3 | 8 | 328 | |
Interest cost | 13 | 18 | 39 | 423 | |
Expected return on plan assets | 0 | 0 | 0 | 0 | |
Amortization of prior service cost | 0 | 0 | 0 | 8 | |
Amortization of losses | 3 | 3 | 9 | 248 | |
Amortization of negative plan amendment | 0 | (267) | |||
Net periodic benefit cost | [1] | $ 19 | $ 24 | $ 56 | 740 |
Income from Discontinued Operations [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Net periodic benefit cost | $ 4,000 | ||||
[1] | Net periodic benefit cost for the nine months ended September 30, 2014 includes $4.0 million recorded in “Income from discontinued operations, net” on the Consolidated Statements of Income and Comprehensive Income. |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Inventory [Line Items] | |||
Inventory | $ 14,506 | $ 8,383 | |
Real Estate Inventory [Member] | |||
Inventory [Line Items] | |||
Inventory | [1] | 10,499 | 4,932 |
Log Inventory [Member] | |||
Inventory [Line Items] | |||
Inventory | $ 4,007 | $ 3,451 | |
[1] | Represents cost of HBU real estate (including capitalized development costs) expected to be sold within 12 months. |
DEBT (Schedule of Long Term Deb
DEBT (Schedule of Long Term Debt) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Total debt | $ 791,233 | |
Current maturities of long-term debt | 0 | $ 129,706 |
LONG-TERM DEBT | 791,233 | $ 621,849 |
Senior Notes due 2022 at a fixed interest rate of 3.75% | ||
Debt Instrument [Line Items] | ||
Total debt | $ 325,000 | |
Interest rate | 3.75% | |
Term Credit Agreement borrowings due 2024 at a variable interest rate of 1.8% at September 30, 2015 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 170,000 | |
Interest rate | 1.80% | |
Revolving Credit Facility borrowings due 2020 at a variable interest rate of 1.4% at September 30, 2015 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 67,000 | |
Interest rate | 1.40% | |
Mortgage notes due 2017 at fixed interest rates of 4.35% | ||
Debt Instrument [Line Items] | ||
Total debt | $ 42,739 | |
Interest rate | 4.35% | |
Solid waste bond due 2020 at a variable interest rate of 1.3% at September 30, 2015 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 15,000 | |
Interest rate | 1.30% | |
New Zealand JV Revolving Credit Facility due 2016 at a variable interest rate of 4.83% at September 30, 2015 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 149,860 | |
Interest rate | 4.83% | |
New Zealand JV noncontrolling interest shareholder loan at 0% interest rate | ||
Debt Instrument [Line Items] | ||
Total debt | $ 21,634 | |
Interest rate | 0.00% |
DEBT (Schedule of Long Term Mat
DEBT (Schedule of Long Term Maturities) (Details) $ in Thousands | Sep. 30, 2015USD ($) |
Debt Disclosure [Abstract] | |
2,015 | $ 0 |
2,016 | 149,860 |
2,017 | 42,000 |
2,018 | 0 |
2,019 | 0 |
Thereafter | 598,634 |
Total debt | 790,494 |
Debt Instrument, Unamortized Premium | $ 700 |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) - USD ($) | Aug. 05, 2015 | Aug. 31, 2015 | Sep. 30, 2015 | Sep. 30, 2015 | Aug. 01, 2015 | Jul. 31, 2015 | Dec. 31, 2014 | Dec. 01, 2014 |
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 550,000,000 | |||||||
New Zealand JV long-term variable rate debt | $ 791,233,000 | $ 791,233,000 | ||||||
Notional amount | $ 309,000,000 | $ 22,000,000 | ||||||
Basis points on periodic interest rate | 1.625% | |||||||
Commitment fee percentage | 0.175% | |||||||
Interest Rate Swap [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Notional amount | $ 170,000,000 | |||||||
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Notional amount | 121,163,000 | 121,163,000 | $ 161,968,000 | |||||
Term Loan Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 350,000,000 | |||||||
Unused borrowing capacity amount | $ 180,000,000 | $ 180,000,000 | ||||||
Periodic effective interest rate | 3.30% | 3.30% | ||||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, term | 5 years | |||||||
Maximum borrowing capacity | $ 200,000,000 | $ 200,000,000 | ||||||
Basis points on periodic interest rate | 1.25% | |||||||
Commitment fee percentage | 0.00% | |||||||
Revolving Credit Facility [Member] | Line of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Net debt borrowings | $ 67,000,000 | |||||||
Remaining borrowing capacity | 131,200,000 | $ 131,200,000 | ||||||
Amount to secure outstanding letters of credit | 1,800,000 | 1,800,000 | ||||||
Farm Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 100,000,000 | |||||||
Working Capital Facility [Member] | Line of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Decrease in debt due to favorable changes in exchange rates | 34,200,000 | |||||||
4.50% Senior Exchangeable Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 131,000,000 | |||||||
Interest rate | 4.50% | |||||||
Working Capital Facility [Member] | Line of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Remaining borrowing capacity | $ 15,000,000 | $ 15,000,000 | ||||||
New Zealand JV noncontrolling interest shareholder loan at 0% interest rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 0.00% | 0.00% | ||||||
New Zealand JV long-term variable rate debt | $ 21,634,000 | $ 21,634,000 | ||||||
New Zealand JV noncontrolling interest shareholder loan at 0% interest rate | Long-term Debt [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Decrease in debt due to favorable changes in exchange rates | 4,900,000 | |||||||
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 | $ 150,000,000 | $ 150,000,000 | ||||||
Periodic effective interest rate | 6.40% | 6.40% | ||||||
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 | $ 121,000,000 | $ 121,000,000 | ||||||
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 | $ 5,000,000 | |||||||
Matariki Forestry Group [Member] | New Zealand JV noncontrolling interest shareholder loan at 0% interest rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of shareholder loan | $ 1,400,000 | |||||||
CoBank, ACB [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, term | 9 years |
ACCUMULATED OTHER COMPREHENSI74
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2015 | Sep. 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 | (56,877) | 36,922 | ||||
Amounts reclassified from accumulated other comprehensive loss | 5,726 | 4,392 | ||||
Net other comprehensive income/(loss) | (51,151) | 41,314 | ||||
Ending balance | $ (55,976) | (55,976) | (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 | (43,420) | (11,381) | ||||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||||
Net other comprehensive income/(loss) | (43,420) | (11,381) | ||||
Ending balance | (17,887) | (17,887) | 25,533 | |||
Net investment hedges | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Beginning balance | (145) | 0 | 0 | |||
Other comprehensive income/(loss) before reclassifications | 6,319 | (145) | ||||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||||
Net other comprehensive income/(loss) | 6,319 | (145) | ||||
Ending balance | 6,174 | 6,174 | (145) | |||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Beginning balance | (1,548) | (342) | (342) | |||
Other comprehensive income/(loss) before reclassifications | (19,776) | 510 | ||||
Amounts reclassified from accumulated other comprehensive loss | 3,312 | (1,086) | (1,716) | |||
Net other comprehensive income/(loss) | (16,464) | (1,206) | ||||
Ending balance | (18,012) | (18,012) | (1,548) | |||
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) [Roll Forward] | ||||||
Amounts reclassified from accumulated other comprehensive loss | (3,312) | 1,929 | ||||
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 | 2,414 | [2] | 6,108 | [3] | ||
Net other comprehensive income/(loss) | 2,414 | 54,046 | ||||
Ending balance | (26,251) | $ (26,251) | $ (28,665) | |||
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other comprehensive (loss) income [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||||
Designated hedged item, gain (loss) recognized in other comprehensive income | $ 13,600 | |||||
[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 at December 31, 2014 due to the spin-off. 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 14 — 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 $1 million write-off of a deferred tax asset related to the revaluation and transfer of liabilities as a result of the spin-off. |
ACCUMULATED OTHER COMPREHENSI75
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclassified AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive loss | $ (55,976) | $ (55,976) | $ (4,825) | $ (46,139) | ||
Other operating income, net | (2,855) | $ (9,144) | (15,567) | $ (20,908) | ||
Comprehensive (loss) income attributable to noncontrolling interest | (5,363) | (12,426) | (18,884) | (6,573) | ||
Income tax (expense) benefit | 541 | $ 11,280 | 1,309 | 5,319 | ||
Income tax expense on pension plan contributed to Rayonier Advanced Materials | 0 | 843 | ||||
Net loss (gain) from accumulated other comprehensive income | 5,726 | 4,392 | ||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||
Accumulated other comprehensive loss | $ (18,012) | (18,012) | (1,548) | $ (342) | ||
Net loss (gain) from accumulated other comprehensive income | 3,312 | (1,086) | (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 | (2,477) | 1,488 | ||||
Income tax (expense) benefit | (1,288) | 835 | ||||
Income tax expense on pension plan contributed to Rayonier Advanced Materials | $ 1,000 | |||||
Net loss (gain) from accumulated other comprehensive income | (3,312) | 1,929 | ||||
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 | 3,928 | (3,194) | ||||
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 | $ 3,149 | $ (1,058) |
OTHER OPERATING INCOME, NET (De
OTHER OPERATING INCOME, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Other Income and Expenses [Abstract] | |||||
Lease income, primarily from hunting leases | $ 4,349 | $ 5,013 | $ 14,348 | $ 12,015 | |
Other non-timber income | 581 | 817 | 2,634 | 1,810 | |
Foreign currency income (loss) | (149) | 4,304 | 67 | 4,292 | |
Gain (loss) on sale or disposal of property and equipment | 4 | 66 | 6 | 46 | |
(Loss) gain on foreign currency exchange contracts | (2,297) | 0 | (3,290) | (32) | |
Bankruptcy claim settlement | 0 | 0 | 0 | 5,779 | |
Gain (loss) on sale of carbon credits | [1] | 0 | 0 | 352 | (307) |
Miscellaneous income (expense), net | 367 | (1,056) | 1,450 | (2,695) | |
Total | $ 2,855 | $ 9,144 | $ 15,567 | $ 20,908 | |
[1] | Loss in 2014 reflects surrender of carbon credit units. |
CONSOLIDATING FINANCIAL STATE77
CONSOLIDATING FINANCIAL STATEMENTS - Narrative (Details) - Senior Notes due 2022 at a fixed interest rate of 3.75% [Member] | 9 Months Ended |
Sep. 30, 2015USD ($) | |
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 STATE78
CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Statements of (Loss) Income and Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Income Statement [Abstract] | |||||
SALES | $ 151,657 | $ 149,829 | $ 407,764 | $ 456,161 | |
Cost of sales | 116,044 | 118,088 | 326,966 | 357,083 | |
Selling and general expenses | 10,689 | 8,806 | 34,315 | 35,904 | |
Other operating expense (income), net | (2,855) | (9,144) | (15,567) | (20,908) | |
Costs and Expenses, Total | 123,878 | 117,750 | 345,714 | 372,079 | |
OPERATING INCOME | 27,779 | 32,079 | 62,050 | 84,082 | |
Interest expense | (7,581) | (9,566) | (24,608) | (35,852) | |
Interest and miscellaneous income (expense), net | (1,558) | (1,734) | (4,250) | (7,131) | |
Equity in (loss) income from subsidiaries | 0 | 0 | 0 | 0 | |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 18,640 | 20,779 | 33,192 | 41,099 | |
Income tax (expense) benefit | 541 | 11,280 | 1,309 | 5,319 | |
INCOME FROM CONTINUING OPERATIONS | 19,181 | 32,059 | 34,501 | 46,418 | |
Income from discontinued operations, net | 0 | 0 | 0 | 43,092 | |
NET INCOME | 19,181 | 32,059 | 34,501 | 89,510 | $ 97,846 |
Less: Net loss attributable to noncontrolling interest | (488) | (642) | (1,379) | (970) | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 19,669 | 32,701 | 35,880 | 90,480 | |
Foreign currency translation adjustment, net of income tax expense of $429 $0, $1,581 and $0 | (13,370) | (37,877) | (53,087) | (16,426) | (15,847) |
New Zealand joint venture cash flow hedges | (14,120) | (3,494) | (17,983) | (2,703) | $ (1,855) |
Amortization of pension and postretirement plans, net of income tax | 890 | 2,265 | 2,414 | 63,235 | |
Total other comprehensive (loss) income | (26,600) | (39,106) | (68,656) | 44,106 | |
COMPREHENSIVE (LOSS) INCOME | (7,419) | (7,047) | (34,155) | 133,616 | |
Less: Comprehensive loss attributable to noncontrolling interest | (5,363) | (12,426) | (18,884) | (6,573) | |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | (2,056) | 5,379 | (15,271) | 140,189 | |
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 | (3,227) | (3,685) | (9,564) | (10,074) | |
Interest and miscellaneous income (expense), net | 1,980 | 1,799 | 5,787 | 7,230 | |
Equity in (loss) income from subsidiaries | 20,916 | 34,587 | 39,657 | 93,324 | |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 19,669 | 32,701 | 35,880 | 90,480 | |
Income tax (expense) benefit | 0 | 0 | 0 | 0 | |
INCOME FROM CONTINUING OPERATIONS | 90,480 | ||||
Income from discontinued operations, net | 0 | ||||
NET INCOME | 19,669 | 32,701 | 35,880 | 90,480 | |
Less: Net loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 19,669 | 32,701 | 35,880 | 90,480 | |
Foreign currency translation adjustment, net of income tax expense of $429 $0, $1,581 and $0 | (8,662) | (27,317) | (37,100) | (11,770) | |
New Zealand joint venture cash flow hedges | (13,954) | (2,270) | (16,465) | (1,756) | |
Amortization of pension and postretirement plans, net of income tax | 890 | 2,265 | 2,414 | 63,235 | |
Total other comprehensive (loss) income | (21,726) | (27,322) | (51,151) | 49,709 | |
COMPREHENSIVE (LOSS) INCOME | (2,057) | 5,379 | (15,271) | 140,189 | |
Less: Comprehensive loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | (2,057) | 5,379 | (15,271) | 140,189 | |
ROC (Subsidiary Guarantor) [Member] | |||||
Income Statement [Abstract] | |||||
SALES | 0 | 0 | 0 | 0 | |
Cost of sales | 0 | 0 | 0 | 0 | |
Selling and general expenses | 4,412 | 3,488 | 15,691 | 8,032 | |
Other operating expense (income), net | 16 | (854) | (445) | 3,094 | |
Costs and Expenses, Total | 4,428 | 2,634 | 15,246 | 11,126 | |
OPERATING INCOME | (4,428) | (2,634) | (15,246) | (11,126) | |
Interest expense | (2,240) | (2,981) | (7,304) | (21,121) | |
Interest and miscellaneous income (expense), net | 583 | 554 | 1,956 | (3,780) | |
Equity in (loss) income from subsidiaries | 26,647 | 38,414 | 58,010 | 121,047 | |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 20,562 | 33,353 | 37,416 | 85,020 | |
Income tax (expense) benefit | 354 | 1,234 | 2,241 | 8,304 | |
INCOME FROM CONTINUING OPERATIONS | 93,324 | ||||
Income from discontinued operations, net | 0 | ||||
NET INCOME | 20,916 | 34,587 | 39,657 | 93,324 | |
Less: Net loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 20,916 | 34,587 | 39,657 | 93,324 | |
Foreign currency translation adjustment, net of income tax expense of $429 $0, $1,581 and $0 | (8,662) | (27,317) | (37,100) | (11,770) | |
New Zealand joint venture cash flow hedges | (13,954) | (2,272) | (16,465) | (1,758) | |
Amortization of pension and postretirement plans, net of income tax | 890 | 2,265 | 2,414 | 63,235 | |
Total other comprehensive (loss) income | (21,726) | (27,324) | (51,151) | 49,707 | |
COMPREHENSIVE (LOSS) INCOME | (810) | 7,263 | (11,494) | 143,031 | |
Less: Comprehensive loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | (810) | 7,263 | (11,494) | 143,031 | |
Non-guarantors [Member] | |||||
Income Statement [Abstract] | |||||
SALES | 151,657 | 149,829 | 407,764 | 456,161 | |
Cost of sales | 116,044 | 118,088 | 326,966 | 357,083 | |
Selling and general expenses | 6,277 | 5,318 | 18,624 | 27,872 | |
Other operating expense (income), net | (2,871) | (8,290) | (15,122) | (24,002) | |
Costs and Expenses, Total | 119,450 | 115,116 | 330,468 | 360,953 | |
OPERATING INCOME | 32,207 | 34,713 | 77,296 | 95,208 | |
Interest expense | (2,114) | (2,900) | (7,740) | (4,657) | |
Interest and miscellaneous income (expense), net | (4,121) | (4,087) | (11,993) | (10,581) | |
Equity in (loss) income from subsidiaries | 0 | 0 | 0 | 0 | |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 25,972 | 27,726 | 57,563 | 79,970 | |
Income tax (expense) benefit | 187 | 10,046 | (932) | (2,985) | |
INCOME FROM CONTINUING OPERATIONS | 76,985 | ||||
Income from discontinued operations, net | 43,092 | ||||
NET INCOME | 26,159 | 37,772 | 56,631 | 120,077 | |
Less: Net loss attributable to noncontrolling interest | (488) | (642) | (1,379) | (970) | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 26,647 | 38,414 | 58,010 | 121,047 | |
Foreign currency translation adjustment, net of income tax expense of $429 $0, $1,581 and $0 | (13,370) | (37,738) | (53,088) | (16,426) | |
New Zealand joint venture cash flow hedges | (14,120) | (3,494) | (17,983) | (2,703) | |
Amortization of pension and postretirement plans, net of income tax | 117 | (4,120) | 132 | 90,214 | |
Total other comprehensive (loss) income | (27,373) | (45,352) | (70,939) | 71,085 | |
COMPREHENSIVE (LOSS) INCOME | (1,214) | (7,580) | (14,308) | 191,162 | |
Less: Comprehensive loss attributable to noncontrolling interest | (5,363) | (12,295) | (18,884) | (6,573) | |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | 4,149 | 4,715 | 4,576 | 197,735 | |
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 | (47,563) | (73,001) | (97,667) | (214,371) | |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (47,563) | (73,001) | (97,667) | (214,371) | |
Income tax (expense) benefit | 0 | 0 | 0 | 0 | |
INCOME FROM CONTINUING OPERATIONS | (214,371) | ||||
Income from discontinued operations, net | 0 | ||||
NET INCOME | (47,563) | (73,001) | (97,667) | (214,371) | |
Less: Net loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | (47,563) | (73,001) | (97,667) | (214,371) | |
Foreign currency translation adjustment, net of income tax expense of $429 $0, $1,581 and $0 | 17,324 | 54,495 | 74,201 | 23,540 | |
New Zealand joint venture cash flow hedges | 27,908 | 4,542 | 32,930 | 3,514 | |
Amortization of pension and postretirement plans, net of income tax | (1,007) | 1,855 | (2,546) | (153,449) | |
Total other comprehensive (loss) income | 44,225 | 60,892 | 104,585 | (126,395) | |
COMPREHENSIVE (LOSS) INCOME | (3,338) | (12,109) | 6,918 | (340,766) | |
Less: Comprehensive loss attributable to noncontrolling interest | 0 | (131) | 0 | 0 | |
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC. | $ (3,338) | $ (11,978) | $ 6,918 | $ (340,766) |
CONSOLIDATING FINANCIAL STATE79
CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
CURRENT ASSETS | ||||
Cash and cash equivalents | $ 65,755 | $ 161,558 | $ 182,831 | $ 199,644 |
Accounts receivable, less allowance for doubtful accounts | 19,296 | 24,018 | ||
Inventory | 14,506 | 8,383 | ||
Prepaid and other current assets | 24,066 | 19,745 | ||
Total current assets | 123,623 | 213,704 | ||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 2,038,032 | 2,088,501 | ||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 67,274 | 77,433 | ||
NET PROPERTY, PLANT AND EQUIPMENT | 6,157 | 6,706 | ||
INVESTMENT IN SUBSIDIARIES | 0 | 0 | ||
INTERCOMPANY NOTES RECEIVABLE | 0 | 0 | ||
OTHER ASSETS | 79,374 | 66,771 | ||
TOTAL ASSETS | 2,314,460 | 2,453,115 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 19,301 | 20,211 | ||
Current maturities of long-term debt | 0 | 129,706 | ||
Accrued taxes | 17,238 | 11,405 | ||
Accrued payroll and benefits | 5,673 | 6,390 | ||
Accrued interest | 8,943 | 8,433 | ||
Other current liabilities | 30,200 | 25,857 | ||
Total current liabilities | 81,355 | 202,002 | ||
LONG-TERM DEBT | 791,233 | 621,849 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 33,599 | 33,477 | ||
OTHER NON-CURRENT LIABILITIES | 32,056 | 20,636 | ||
INTERCOMPANY PAYABLE | 0 | 0 | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,308,420 | 1,488,470 | ||
Noncontrolling interest | 67,797 | 86,681 | ||
TOTAL SHAREHOLDERS’ EQUITY | 1,376,217 | 1,575,151 | 1,755,243 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,314,460 | 2,453,115 | ||
Rayonier Inc. (Parent Guarantor) [Member] | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 12,955 | 102,218 | 84,283 | 130,181 |
Accounts receivable, less allowance for doubtful accounts | 0 | 0 | ||
Inventory | 0 | 0 | ||
Prepaid and other current assets | 0 | 0 | ||
Total current assets | 12,955 | 102,218 | ||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | $ 0 | 0 | ||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 0 | |||
NET PROPERTY, PLANT AND EQUIPMENT | $ 0 | 0 | ||
INVESTMENT IN SUBSIDIARIES | 1,357,910 | 1,463,303 | ||
INTERCOMPANY NOTES RECEIVABLE | 266,149 | 248,233 | ||
OTHER ASSETS | 2,396 | 2,763 | ||
TOTAL ASSETS | 1,639,410 | 1,816,517 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 0 | 0 | ||
Current maturities of long-term debt | 0 | |||
Accrued taxes | 0 | 0 | ||
Accrued payroll and benefits | 0 | 0 | ||
Accrued interest | 5,990 | 3,047 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | 5,990 | 3,047 | ||
LONG-TERM DEBT | 325,000 | 325,000 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 0 | 0 | ||
OTHER NON-CURRENT LIABILITIES | 0 | 0 | ||
INTERCOMPANY PAYABLE | 0 | 0 | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,308,420 | 1,488,470 | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL SHAREHOLDERS’ EQUITY | 1,308,420 | 1,488,470 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 1,639,410 | 1,816,517 | ||
ROC (Subsidiary Guarantor) [Member] | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 10,760 | 8,105 | 51,488 | 11,023 |
Accounts receivable, less allowance for doubtful accounts | 143 | 1,409 | ||
Inventory | 0 | 0 | ||
Prepaid and other current assets | 11,124 | 2,009 | ||
Total current assets | 22,027 | 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 | 377 | 433 | ||
INVESTMENT IN SUBSIDIARIES | 2,213,466 | 2,053,911 | ||
INTERCOMPANY NOTES RECEIVABLE | (2,914) | 21,500 | ||
OTHER ASSETS | 24,599 | 18,369 | ||
TOTAL ASSETS | 2,257,555 | 2,105,736 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 1,437 | 2,810 | ||
Current maturities of long-term debt | 129,706 | |||
Accrued taxes | 13 | 11 | ||
Accrued payroll and benefits | 3,181 | 3,253 | ||
Accrued interest | 500 | 2,517 | ||
Other current liabilities | 14,031 | 1,073 | ||
Total current liabilities | 19,162 | 139,370 | ||
LONG-TERM DEBT | 252,000 | 31,000 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 34,283 | 34,161 | ||
OTHER NON-CURRENT LIABILITIES | 20,288 | 6,436 | ||
INTERCOMPANY PAYABLE | 573,912 | 431,466 | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,357,910 | 1,463,303 | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL SHAREHOLDERS’ EQUITY | 1,357,910 | 1,463,303 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,257,555 | 2,105,736 | ||
Non-guarantors [Member] | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 42,040 | 51,235 | 47,060 | 58,440 |
Accounts receivable, less allowance for doubtful accounts | 19,153 | 22,609 | ||
Inventory | 14,506 | 8,383 | ||
Prepaid and other current assets | 12,942 | 17,736 | ||
Total current assets | 88,641 | 99,963 | ||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 2,038,032 | 2,088,501 | ||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 67,274 | 77,433 | ||
NET PROPERTY, PLANT AND EQUIPMENT | 5,780 | 6,273 | ||
INVESTMENT IN SUBSIDIARIES | 0 | 0 | ||
INTERCOMPANY NOTES RECEIVABLE | 0 | 0 | ||
OTHER ASSETS | 52,379 | 45,639 | ||
TOTAL ASSETS | 2,252,106 | 2,317,809 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 17,864 | 17,401 | ||
Current maturities of long-term debt | 0 | |||
Accrued taxes | 17,225 | 11,394 | ||
Accrued payroll and benefits | 2,492 | 3,137 | ||
Accrued interest | 37,782 | 31,281 | ||
Other current liabilities | 16,169 | 24,784 | ||
Total current liabilities | 91,532 | 87,997 | ||
LONG-TERM DEBT | 214,233 | 265,849 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | (684) | (684) | ||
OTHER NON-CURRENT LIABILITIES | 11,768 | 14,200 | ||
INTERCOMPANY PAYABLE | (257,486) | (153,754) | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 2,124,946 | 2,017,520 | ||
Noncontrolling interest | 67,797 | 86,681 | ||
TOTAL SHAREHOLDERS’ EQUITY | 2,192,743 | 2,104,201 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,252,106 | 2,317,809 | ||
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 | (3,571,376) | (3,517,214) | ||
INTERCOMPANY NOTES RECEIVABLE | (263,235) | (269,733) | ||
OTHER ASSETS | 0 | 0 | ||
TOTAL ASSETS | (3,834,611) | (3,786,947) | ||
CURRENT LIABILITIES | ||||
Accounts payable | 0 | 0 | ||
Current maturities of long-term debt | 0 | |||
Accrued taxes | 0 | 0 | ||
Accrued payroll and benefits | 0 | 0 | ||
Accrued interest | (35,329) | (28,412) | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | (35,329) | (28,412) | ||
LONG-TERM DEBT | 0 | 0 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 0 | 0 | ||
OTHER NON-CURRENT LIABILITIES | 0 | 0 | ||
INTERCOMPANY PAYABLE | (316,426) | (277,712) | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | (3,482,856) | (3,480,823) | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL SHAREHOLDERS’ EQUITY | (3,482,856) | (3,480,823) | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ (3,834,611) | $ (3,786,947) |
CONSOLIDATING FINANCIAL STATE80
CONSOLIDATING FINANCIAL STATEMENTS - Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Thousands | Jun. 27, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Statement of Cash Flows [Abstract] | |||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | $ 143,403 | $ 284,069 | |
INVESTING ACTIVITIES | |||
Capital expenditures | (38,517) | (45,242) | |
Capital expenditures from discontinued operations | 0 | (60,442) | |
Real estate development costs | (1,745) | (3,314) | |
Purchase of timberlands | (88,466) | (93,189) | |
Change in restricted cash | (17,835) | 47,318 | |
Investment in Subsidiaries | 0 | 0 | |
Other | 3,692 | (478) | |
CASH USED FOR INVESTING ACTIVITIES | (142,871) | (155,347) | |
FINANCING ACTIVITIES | |||
Issuance of debt | 379,027 | 1,295,163 | |
Repayment of debt | (300,871) | (1,173,049) | |
Dividends paid | $ (63,200) | (94,280) | (225,877) |
Proceeds from the issuance of common shares | 1,322 | 4,645 | |
Repurchase of common shares | (73,621) | (1,834) | |
Debt issuance costs | (1,678) | (12,380) | |
Net cash disbursed upon spin-off of Performance Fibers business | 0 | (31,420) | |
Issuance of Intercompany Notes | 0 | ||
Intercompany distributions | 0 | 0 | |
Other | 0 | (680) | |
CASH USED FOR FINANCING ACTIVITIES | (90,101) | (145,432) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (6,234) | (103) | |
CASH AND CASH EQUIVALENTS | |||
Change in cash and cash equivalents | (95,803) | (16,813) | |
Balance, beginning of year | 161,558 | 199,644 | |
Balance, end of period | 65,755 | 182,831 | |
Rayonier Inc. (Parent Guarantor) [Member] | |||
Statement of Cash Flows [Abstract] | |||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | 77,316 | 219,988 | |
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 | (94,280) | (225,877) | |
Proceeds from the issuance of common shares | 1,322 | 4,645 | |
Repurchase of common shares | (73,621) | (1,834) | |
Debt issuance costs | 0 | 0 | |
Net cash disbursed upon spin-off of Performance Fibers business | (31,420) | ||
Issuance of Intercompany Notes | (11,400) | ||
Intercompany distributions | 0 | 0 | |
Other | 0 | ||
CASH USED FOR FINANCING ACTIVITIES | (166,579) | (265,886) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 0 | 0 | |
CASH AND CASH EQUIVALENTS | |||
Change in cash and cash equivalents | (89,263) | (45,898) | |
Balance, beginning of year | 102,218 | 130,181 | |
Balance, end of period | 12,955 | 84,283 | |
ROC (Subsidiary Guarantor) [Member] | |||
Statement of Cash Flows [Abstract] | |||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | 92,414 | 238,010 | |
INVESTING ACTIVITIES | |||
Capital expenditures | (78) | (400) | |
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 | (75,946) | 855,014 | |
Other | 0 | 0 | |
CASH USED FOR INVESTING ACTIVITIES | (76,024) | 854,614 | |
FINANCING ACTIVITIES | |||
Issuance of debt | 374,000 | 185,000 | |
Repayment of debt | (294,472) | (1,002,500) | |
Dividends paid | 0 | 0 | |
Proceeds from the issuance of common shares | 0 | 0 | |
Repurchase of common shares | 0 | 0 | |
Debt issuance costs | (1,678) | 0 | |
Net cash disbursed upon spin-off of Performance Fibers business | 0 | ||
Issuance of Intercompany Notes | 0 | ||
Intercompany distributions | (91,585) | (234,659) | |
Other | 0 | ||
CASH USED FOR FINANCING ACTIVITIES | (13,735) | (1,052,159) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 0 | 0 | |
CASH AND CASH EQUIVALENTS | |||
Change in cash and cash equivalents | 2,655 | 40,465 | |
Balance, beginning of year | 8,105 | 11,023 | |
Balance, end of period | 10,760 | 51,488 | |
Non-guarantors [Member] | |||
Statement of Cash Flows [Abstract] | |||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | 64,901 | 57,801 | |
INVESTING ACTIVITIES | |||
Capital expenditures | (38,439) | (44,842) | |
Capital expenditures from discontinued operations | (60,442) | ||
Real estate development costs | (1,745) | (3,314) | |
Purchase of timberlands | (88,466) | (93,189) | |
Change in restricted cash | (17,835) | 47,318 | |
Investment in Subsidiaries | 0 | 0 | |
Other | 3,692 | (478) | |
CASH USED FOR INVESTING ACTIVITIES | (142,793) | (154,947) | |
FINANCING ACTIVITIES | |||
Issuance of debt | 5,027 | 1,110,163 | |
Repayment of debt | (6,399) | (170,549) | |
Dividends paid | 0 | 0 | |
Proceeds from the issuance of common shares | 0 | 0 | |
Repurchase of common shares | 0 | 0 | |
Debt issuance costs | 0 | (12,380) | |
Net cash disbursed upon spin-off of Performance Fibers business | 0 | ||
Issuance of Intercompany Notes | 11,400 | ||
Intercompany distributions | 76,303 | (852,085) | |
Other | (680) | ||
CASH USED FOR FINANCING ACTIVITIES | 74,931 | 85,869 | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (6,234) | (103) | |
CASH AND CASH EQUIVALENTS | |||
Change in cash and cash equivalents | (9,195) | (11,380) | |
Balance, beginning of year | 51,235 | 58,440 | |
Balance, end of period | 42,040 | 47,060 | |
Consolidation Adjustments [Member] | |||
Statement of Cash Flows [Abstract] | |||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | (91,228) | (231,730) | |
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 | 75,946 | (855,014) | |
Other | 0 | 0 | |
CASH USED FOR INVESTING ACTIVITIES | 75,946 | (855,014) | |
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 | 0 | |
Net cash disbursed upon spin-off of Performance Fibers business | 0 | ||
Issuance of Intercompany Notes | 0 | ||
Intercompany distributions | 15,282 | 1,086,744 | |
Other | 0 | ||
CASH USED FOR FINANCING ACTIVITIES | 15,282 | 1,086,744 | |
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 |