Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 29, 2016 | |
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 | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 122,822,111 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
SALES | $ 134,843 | $ 140,305 | |
Costs and Expenses | |||
Cost of sales | 107,971 | 107,234 | |
Selling and general expenses | 9,779 | 10,898 | |
Other operating income, net (Note 14) | (5,904) | (5,574) | |
Costs and Expenses, Total | 111,846 | 112,558 | |
OPERATING INCOME | 22,997 | 27,747 | |
Interest expense | (7,098) | (8,544) | |
Interest income and miscellaneous expense, net | (1,622) | (1,494) | |
INCOME BEFORE INCOME TAXES | 14,277 | 17,709 | |
Income tax benefit | 781 | 471 | |
NET INCOME | 15,058 | 18,180 | $ 43,941 |
Less: Net income attributable to noncontrolling interest | 586 | 433 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 14,472 | 17,747 | |
OTHER COMPREHENSIVE (LOSS) INCOME | |||
Foreign currency translation adjustment, net of income tax benefit of $0 and $343 | 2,804 | (14,323) | (32,451) |
Cash flow hedges, net of income tax benefit (expense) of $432 and $436 | (13,774) | (946) | (9,961) |
Actuarial change and amortization of pension and postretirement plans, net of income tax expense of $0 and $158 | 617 | 781 | $ 2,933 |
Total other comprehensive loss | (10,353) | (14,488) | |
COMPREHENSIVE INCOME | 4,705 | 3,692 | |
Less: Comprehensive loss attributable to noncontrolling interest | (3,749) | (3,791) | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | $ 8,454 | $ 7,483 | |
EARNINGS PER COMMON SHARE (Note 10) | |||
Basic earnings per share attributable to Rayonier Inc. (in dollars per share) | $ 0.12 | $ 0.14 | |
Diluted earnings per share attributable to Rayonier Inc. (in dollars per share) | 0.12 | 0.14 | |
Dividends declared per share (in dollars per share) | $ 0.25 | $ 0.25 | $ 1 |
Consolidated Statements of Inc3
Consolidated Statements of Income and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustment, income tax benefit | $ 0 | $ 343 |
Cash flow hedges, income tax benefit (expense) | 432 | 436 |
Amortization of pension and postretirement plans, income tax expense | $ 0 | $ 158 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 76,204 | $ 51,777 |
Accounts receivable, less allowance for doubtful accounts of $42 and $42 | 27,497 | 20,222 |
Inventory (Note 15) | 17,443 | 15,351 |
Prepaid expenses | 12,890 | 12,654 |
Other current assets | 1,177 | 5,681 |
Total current assets | 135,211 | 105,685 |
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 2,063,691 | 2,066,780 |
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (NOTE 5) | 66,618 | 65,450 |
PROPERTY, PLANT AND EQUIPMENT | ||
Land | 1,833 | 1,833 |
Buildings | 9,024 | 9,014 |
Machinery and equipment | 3,689 | 3,686 |
Construction in progress | 1,638 | 1,282 |
Total property, plant and equipment, gross | 16,184 | 15,815 |
Less — accumulated depreciation | (9,349) | (9,073) |
Total property, plant and equipment, net | 6,835 | 6,742 |
OTHER ASSETS | 59,782 | 71,281 |
TOTAL ASSETS | 2,332,137 | 2,315,938 |
CURRENT LIABILITIES | ||
Accounts payable | 22,242 | 21,479 |
Current maturities of long-term debt | 12,211 | 0 |
Accrued taxes | 4,076 | 3,685 |
Accrued payroll and benefits | 3,317 | 7,037 |
Accrued interest | 7,373 | 6,153 |
Other current liabilities | 19,089 | 21,103 |
Total current liabilities | 68,308 | 59,457 |
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 857,429 | 830,554 |
PENSION AND OTHER POSTRETIREMENT BENEFITS (Note 13) | 34,313 | 34,137 |
OTHER NON-CURRENT LIABILITIES | $ 36,307 | $ 30,050 |
COMMITMENTS AND CONTINGENCIES (Notes 6 and 8) | ||
SHAREHOLDERS’ EQUITY | ||
Common Shares, 480,000,000 shares authorized, 122,742,575 and 122,770,217 shares issued and outstanding | $ 704,174 | $ 708,827 |
Retained earnings | 595,851 | 612,760 |
Accumulated other comprehensive loss | (43,581) | (33,503) |
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,256,444 | 1,288,084 |
Noncontrolling interest | 79,336 | 73,656 |
TOTAL SHAREHOLDERS’ EQUITY | 1,335,780 | 1,361,740 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 2,332,137 | $ 2,315,938 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
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 | 122,742,575 | 122,770,217 |
Common shares, shares outstanding | 122,742,575 | 122,770,217 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Shares | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Non-controlling Interest |
Beginning balance (in shares) at Dec. 31, 2014 | 126,773,097 | ||||
Beginning balance at Dec. 31, 2014 | $ 1,575,151 | $ 702,598 | $ 790,697 | $ (4,825) | $ 86,681 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 43,941 | 46,165 | (2,224) | ||
Dividends | (124,943) | (124,943) | |||
Issuance of shares under incentive stock plans (shares) | 205,219 | ||||
Issuance of shares under incentive stock plans | 2,117 | $ 2,117 | |||
Stock-based compensation | 4,484 | 4,484 | |||
Tax deficiency on stock-based compensation | (250) | $ (250) | |||
Repurchase of common shares (in shares) | (4,208,099) | ||||
Repurchase of common shares | (100,122) | $ (122) | (100,000) | ||
Net gain from pension and postretirement plans | 2,933 | 2,933 | |||
Adjustments to Rayonier Advanced Materials | 841 | 841 | |||
Foreign currency translation adjustment | (32,451) | (21,567) | (10,884) | ||
Cash flow hedges | (9,961) | (10,044) | 83 | ||
Ending balance (in shares) at Dec. 31, 2015 | 122,770,217 | ||||
Ending balance at Dec. 31, 2015 | 1,361,740 | $ 708,827 | 612,760 | (33,503) | 73,656 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 15,058 | 14,472 | 586 | ||
Dividends | (30,691) | (30,691) | |||
Issuance of shares under incentive stock plans (shares) | 11,232 | ||||
Issuance of shares under incentive stock plans | 18 | $ 18 | |||
Stock-based compensation | 839 | $ 839 | |||
Repurchase of common shares (in shares) | (38,874) | ||||
Repurchase of common shares | (706) | $ (16) | (690) | ||
Net gain from pension and postretirement plans | 617 | 617 | |||
Foreign currency translation adjustment | 2,804 | (210) | 3,014 | ||
Cash flow hedges | (13,774) | (13,923) | 149 | ||
Recapitalization of New Zealand Joint Venture | 3,438 | (5,398) | 3,438 | 1,960 | |
Recapitalization costs | (124) | $ (96) | (28) | ||
Ending balance (in shares) at Mar. 31, 2016 | 122,742,575 | ||||
Ending balance at Mar. 31, 2016 | $ 1,335,780 | $ 704,174 | $ 595,851 | $ (43,581) | $ 79,336 |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared (in dollars per share) | $ 0.25 | $ 0.25 | $ 1 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
OPERATING ACTIVITIES | |||
Net income | $ 15,058 | $ 18,180 | |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation, depletion and amortization | 29,342 | 29,975 | |
Non-cash cost of land and improved development | 4,108 | 3,747 | |
Stock-based incentive compensation expense | 839 | 805 | |
Deferred income taxes | (545) | (189) | |
Amortization of losses from pension and postretirement plans | 617 | 939 | |
Other | (1,081) | 40 | |
Changes in operating assets and liabilities: | |||
Receivables | (6,904) | 3,544 | |
Inventories | (4,619) | (3,133) | |
Accounts payable | 1,369 | 2,857 | |
Income tax receivable/payable | (98) | (150) | |
All other operating activities | (7,051) | (3,217) | |
CASH PROVIDED BY OPERATING ACTIVITIES | 31,035 | 53,398 | |
INVESTING ACTIVITIES | |||
Capital expenditures | (13,298) | (13,164) | |
Real estate development investments | (1,685) | (276) | |
Purchase of timberlands | (14,323) | (23,070) | |
Change in restricted cash | 10,613 | (7,071) | |
Other | (1,590) | (158) | |
CASH USED FOR INVESTING ACTIVITIES | (20,283) | (43,739) | |
FINANCING ACTIVITIES | |||
Issuance of debt | 285,552 | 12,000 | |
Repayment of debt | (240,752) | (11,371) | |
Dividends paid | (30,675) | (31,667) | |
Proceeds from the issuance of common shares | 18 | 546 | |
Repurchase of common shares made under share repurchase program | (690) | 0 | |
Other | (16) | (94) | |
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 13,437 | (30,586) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 238 | (1,582) | |
CASH AND CASH EQUIVALENTS | |||
Change in cash and cash equivalents | 24,427 | (22,509) | |
Balance, beginning of year | 51,777 | 161,558 | |
Balance, end of period | 76,204 | 139,049 | |
Cash paid during the period: | |||
Interest | [1] | 5,808 | 5,016 |
Income taxes | 119 | 138 | |
Non-cash investing activity: | |||
Capital assets purchased on account | 2,725 | 2,441 | |
Patronage refunds received, netted with interest paid | $ 400 | $ 1,300 | |
[1] | Interest paid is presented net of patronage refunds received of $0.4 million and $1.3 million for the three months ended March 31, 2016 and March 31, 2015, respectively. For additional information on patronage refunds, see Note 5 — Debt in the 2015 Form 10-K. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015 , as filed with the SEC (the “2015 Form 10-K”). Reclassifications Certain 2015 amounts have been reclassified to conform with the current year presentation, including changes in balance sheet presentation. During the first quarter of 2016, the Company reclassified capitalized debt costs related to non-revolving debt from Other Assets to Long Term Debt as a result of the adoption of ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-50) - Simplifying the Presentation of Debt Issuance Costs, which is required to be applied on a retrospective basis. This reclassification is reflected in the March 31, 2016 and December 31, 2015 Consolidated Balance Sheets. A corresponding change has also been made to the Consolidated Statement of Cash Flows for both periods presented. New Accounting Standards In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This update simplifies the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU No. 2016-09 is effective for annual periods beginning after December 15, 2016 , and interim periods within those annual periods. Rayonier intends to adopt ASU No. 2016-09 in the Company’s first quarter 2017 Form 10-Q. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships , which clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815 does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU No. 2016-05 is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Rayonier intends to adopt ASU No. 2016-05 in the Company’s first quarter 2017 Form 10-Q filing, which the Company does not expect will have an impact on the consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which requires lessees to recognize most leases on their balance sheets related to the rights and obligations created by those leases. The ASU also requires additional qualitative and quantitative disclosures related to the nature, timing and uncertainty of cash flows arising from leases. ASU No. 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. ASU No. 2016-02 is required to be applied retrospectively to all periods presented beginning in the period of adoption. Early adoption is permitted. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. In May 2014, the FASB and International Accounting Standards Board (“IASB”) jointly issued ASU No. 2014-09, Revenue from Contracts with Customers , a comprehensive new revenue recognition standard that will supersede current revenue recognition guidance. 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. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers—Identifying Performance Obligations and Licensing . The new standard clarifies the guidance for identifying performance obligations. 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 and has completed a preliminary analysis of the specific impacts to our New Zealand Timber segment. Subsequent Events Menasha Acquisition On April 29, 2016, the Company, jointly with Forest Investment Associates (“FIA”) on behalf of funds it manages, completed an acquisition of all the outstanding common stock of Menasha Forest Products Corporation (“Menasha”), a privately held company with approximately 132,000 acres of timberland located in Oregon and Washington (the “Menasha Acquisition”). In a subsequent transaction that is expected to close in the second quarter, the Menasha timberland will be distributed to various entities, ultimately resulting in Rayonier owning an identified portfolio of 61,000 acres of the Menasha timberland for a final purchase price of approximately $263 million . As of the filing date of this report the Company has not completed its initial accounting related to this acquisition. Accordingly, certain disclosures required by ASC 805 Business Combinations will be included upon the Company’s completion of such assessment in the second quarter and will be included in its respective Form 10-Q Report. Disposition of 55,000 acres of Pacific Northwest timberland On April 28, 2016, the Company completed its disposition of approximately 55,000 acres located in Washington to FIA (the “Washington disposition”) for a sales price of approximately $130 million . The proceeds received from the disposition were used to finance the Company’s portion of the Menasha Acquisition. Incremental Term Loan On April 28, 2016, the Company entered into an Incremental Term Loan Agreement with CoBank, ACB, as administrative agent, and a syndicate of Farm Credit institutions to provide a 10 -year, $300 million incremental term loan. Proceeds from the new term loan were used to fund Rayonier’s portion of the Menasha transaction net of the proceeds received from the Washington disposition (approximately $130 million ), to repay approximately $105 million outstanding on the company’s revolving credit facility and will also be used for general corporate purposes. |
JOINT VENTURE INVESTMENT
JOINT VENTURE INVESTMENT | 3 Months Ended |
Mar. 31, 2016 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Joint Venture Investment | JOINT VENTURE INVESTMENT Matariki Forestry Group On March 3, 2016 (the "contribution date"), the Company made a capital contribution into Matariki Forestry Group (the "New Zealand JV"), a joint venture that owns or leases approximately 0.4 million legal acres of New Zealand timberlands, for the purpose of refinancing approximately NZ $235 million of New Zealand JV indebtedness and paying related fees and expenses, including the costs of settling out-of-the-money interest rate swaps. As a result of the capital contribution, the Company's ownership interest in the New Zealand JV increased from 65% to 77% . As a result of the increase in ownership percentage, the pro-rata share of the New Zealand JV’s unrealized foreign currency and cash flow hedge losses were reallocated between the Company and the noncontrolling interest. In accordance with ASC 810-10-45-24, this reallocation resulted in a reduction to the common share balance. The Company maintains a controlling financial interest in the New Zealand JV and accordingly, consolidates the New Zealand JV’s Balance Sheet and results of operations. The portions of the consolidated financial position and results of operations attributable to the New Zealand JV’s 23% noncontrolling interest are shown separately within the Consolidated Statement of Income and Comprehensive Income and Consolidated Statement of Shareholders’ Equity. Rayonier New Zealand Limited (“RNZ”), a wholly-owned subsidiary of Rayonier Inc., serves as the manager of the New Zealand JV. |
SEGMENT AND GEOGRAPHICAL INFORM
SEGMENT AND GEOGRAPHICAL INFORMATION | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment and Geographical Information | SEGMENT AND GEOGRAPHICAL INFORMATION Sales between operating segments are made based on estimated fair market value and intercompany sales, purchases and profits (losses) are eliminated in consolidation. The Company evaluates financial performance based on segment operating income and Adjusted EBITDA. Asset information is not reported by segment, as the company does not produce asset information by segment internally. Operating income as presented in the Consolidated Statements of Income and Comprehensive Income is equal to segment income. Certain income (loss) items in the Consolidated Statements of Income and Comprehensive Income are not allocated to segments. These items, which include 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 and are included under “Corporate and other.” Segment information for the three months ended March 31, 2016 and 2015 were as follows: Three Months Ended SALES 2016 2015 Southern Timber $44,740 $35,531 Pacific Northwest Timber 19,309 19,154 New Zealand Timber 36,023 41,194 Real Estate 13,363 23,791 Trading 21,408 20,635 Total $134,843 $140,305 Three Months Ended OPERATING INCOME 2016 2015 Southern Timber $15,753 $12,413 Pacific Northwest Timber 1,385 2,587 New Zealand Timber 4,744 5,694 Real Estate 4,225 12,582 Trading 350 270 Corporate and other (3,460 ) (5,799 ) Total Operating Income 22,997 27,747 Unallocated interest expense and other (8,720 ) (10,038 ) Total Income before Income Taxes $14,277 $17,709 Three Months Ended DEPRECIATION, DEPLETION AND AMORTIZATION 2016 2015 Southern Timber $16,556 $14,301 Pacific Northwest Timber 4,639 3,790 New Zealand Timber 4,860 8,003 Real Estate 3,203 3,812 Trading — — Corporate and other 84 69 Total $29,342 $29,975 Three Months Ended NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT 2016 2015 Southern Timber — — Pacific Northwest Timber — — New Zealand Timber 1,824 — Real Estate 2,284 3,747 Trading — — Corporate and other — — Total $4,108 $3,747 |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Rayonier’s debt consisted of the following at March 31, 2016 : March 31, 2016 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 2.1% at March 31, 2016 350,000 Revolving Credit Facility borrowings due 2020 at a variable interest rate of 1.7% at March 31, 2016 105,000 Mortgage notes due 2017 at fixed interest rates of 4.35% 42,537 Solid waste bond due 2020 at a variable interest rate of 1.7% at March 31, 2016 15,000 New Zealand JV Working Capital Facility due 2016 at a variable interest rate of 3.2% at March 31, 2016 12,211 New Zealand JV noncontrolling interest shareholder loan at 0% interest rate 23,095 Total debt 872,843 Less: Current maturities of long-term debt (12,211 ) Less: Deferred financing costs (3,203 ) Long-term debt, net of deferred financing costs $857,429 Principal payments due during the next five years and thereafter are as follows: 2016 $12,211 2017 (a) 42,000 2018 — 2019 — 2020 120,000 Thereafter 698,095 Total Debt $872,306 (a) The mortgage notes due in 2017 were recorded at a premium of $0.5 million as of March 31, 2016 . 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 five -year $200 million unsecured revolving credit facility (see below) and 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% . 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 first quarter was approximately 3.3% after consideration of the estimated patronage refunds and interest rate swaps. As of March 31, 2016 , the term debt was advanced in full 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 $ 8.0 million were made in the first quarter of 2016 on the revolving credit facility. At March 31, 2016 , the Company had available borrowings of $ 93.3 million under the revolving credit facility, net of $1.7 million to secure its outstanding letters of credit. Joint Venture Debt On March 3, 2016, the Company used proceeds from the term loan facility to fund a capital contribution into the New Zealand JV. The New Zealand JV in turn used the proceeds for full repayment of the outstanding amount of $155 million under its Tranche A credit facility. The New Zealand JV also has a $27.6 million working capital facility. During the three months ended March 31, 2016 , the New Zealand JV made $12.2 million of additional borrowings, net of repayments, on the facility. Draws totaling $15.4 million remain available on the working capital facility. In addition, the New Zealand JV paid $0.3 million of its shareholder loan held with the non-controlling interest party. Unfavorable changes in exchange rates for the three months ended March 31, 2016 increased debt on a U.S. dollar basis for its shareholder loan by $0.2 million . Debt Covenants In connection with the Company’s $350 million term credit agreement and $200 million revolving credit facility, customary covenants must be met, the most significant of which include interest coverage and leverage ratios. In addition to these financial covenants, the mortgage note, term credit agreement and revolving credit facility include customary covenants that limit the incurrence of debt and the disposition of assets, among others. At March 31, 2016 , the Company was in compliance with all applicable covenants. Subsequent Event See Note 1 — Basis of Presentation for additional information on subsequent events. |
HIGHER AND BETTER USE TIMBERLAN
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS | 3 Months Ended |
Mar. 31, 2016 | |
Real Estate [Abstract] | |
Higher and Better Use Timberlands and Real Estate Development Investments | HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS Rayonier continuously assesses potential alternative uses of its timberlands, as some properties may become more valuable for development, residential, recreation or other purposes. The Company periodically transfers, via a sale or contribution from the 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, 2015 to March 31, 2016 is shown below: Higher and Better Use Timberlands and Real Estate Development Investments Land and Timber Development Investments Total Non-current portion at December 31, 2015 $57,897 $7,553 $65,450 Plus: Current portion (a) 6,019 6,233 12,252 Total Balance at December 31, 2015 63,916 13,786 77,702 Non-cash cost of land and improved development (539 ) (139 ) (678 ) Timber depletion from harvesting activities and basis of timber sold in real estate sales (467 ) — (467 ) Capitalized real estate development investments — 1,685 1,685 Capital expenditures (silviculture) 50 — 50 Intersegment transfers 4 — 4 Total Balance at March 31, 2016 62,964 15,332 78,296 Less: Current portion (a) (6,655 ) (5,023 ) (11,678 ) Non-current portion at March 31, 2016 $56,309 $10,309 $66,618 (a) The current portion of Higher and Better Use Timberlands and Real Estate Development Investments is recorded in Inventory. See Note 15 — Inventory for additional information. |
COMMITMENTS
COMMITMENTS | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016, the future minimum payments under non-cancellable operating and timberland leases were as follows: Operating Leases Timberland Leases (a) Purchase Obligations (b) Total Remaining 2016 $1,449 $7,262 $3,512 $12,223 2017 1,473 10,772 3,358 15,603 2018 763 9,275 3,163 13,201 2019 620 8,789 3,163 12,572 2020 534 8,348 3,163 12,045 Thereafter (c) 1,613 158,766 10,724 171,103 $6,452 $203,212 $27,083 $236,747 (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 (foreign exchange contracts and interest rate swaps) and standby letters of credit fees for industrial revenue bonds. (c) Includes 20 years of future minimum payments for perpetual Crown Forest Licenses (“CFL”). A CFL consists of a license to use public or government owned land to operate a commercial forest. The CFL's extend indefinitely and may only be terminated upon a 35 year termination notice from the government. If no termination notice is given, the CFLs renew automatically each year for a one year term. As of March 31, 2016 , the New Zealand JV has four CFL’s under termination notice, terminating in 2034, two in 2044 and 2049 as well as two fixed term CFL’s expiring in 2062. The annual license fee is determined based on current market rental value, with triennial rent reviews. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2016 | |
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 tax. The New Zealand JV is subject to corporate level tax in New Zealand. Non-REIT qualifying operations are conducted by the Company’s taxable REIT subsidiaries (“TRS”). The primary businesses performed in Rayonier’s taxable REIT subsidiaries include log trading and certain real estate activities, such as the sale and entitlement of development HBU properties. Provision for Income Taxes The Company’s effective tax rate is below the 35.0% U.S. statutory rate due to tax benefits associated with being a REIT. The income tax benefits for the three months ended March 31, 2016 and 2015 are principally related to the New Zealand JV. The table below reconciles the U.S. statutory rate to the Company’s effective tax rate for each period presented: Three Months Ended March 31, 2016 2015 Income tax expense at federal statutory rate ($4,997 ) 35.0 % ($6,198 ) 35.0 % U.S. and foreign REIT income & U.S. TRS taxable losses 4,360 (30.6 ) 7,502 (42.4 ) Foreign TRS operations 117 (0.8 ) 1,137 (6.4 ) U.S. net deferred tax asset valuation allowance (452 ) 3.2 (1,812 ) 10.2 Other (80 ) 0.6 (158 ) 0.9 Income tax (expense) benefit before discrete items ($1,052 ) 7.4 % $471 (2.7 )% Tax benefit recognized related to changes in the New Zealand JV deferred tax inventory 1,833 (12.9 ) — — Income tax benefit as reported $781 (5.5 )% $471 (2.7 )% |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2016 | |
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 has certain obligations to advance expenses and provide indemnification to certain current and former officers and directors of the Company. The Company has also incurred expenses as a result of 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 cooperated with the SEC and complied with its requests. 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. |
GUARANTEES
GUARANTEES | 3 Months Ended |
Mar. 31, 2016 | |
Guarantees [Abstract] | |
Guarantees | GUARANTEES The Company provides financial guarantees as required by creditors, insurance programs, and various governmental agencies. As of March 31, 2016 , the following financial guarantees were outstanding: Financial Commitments Maximum Potential Payment Carrying Amount of Associated Liability Standby letters of credit (a) $16,549 $15,000 Guarantees (b) 2,254 43 Surety bonds (c) 906 — Total financial commitments $19,709 $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 March 31, 2016 , 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 2016 and 2017 and are expected to be renewed as required. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 Net Income $15,058 $18,180 Less: Net income attributable to noncontrolling interest 586 433 Net income attributable to Rayonier Inc. $14,472 $17,747 Shares used for determining basic earnings per common share 122,556,239 126,614,334 Dilutive effect of: Stock options 53,526 168,680 Performance and restricted shares 35,124 51,494 Assumed conversion of Senior Exchangeable Notes (a) — 892,885 Assumed conversion of warrants (a) — — Shares used for determining diluted earnings per common share 122,644,889 127,727,393 Basic earnings per common share attributable to Rayonier Inc.: $0.12 $0.14 Diluted earnings per common share attributable to Rayonier Inc.: $0.12 $0.14 Three Months Ended 2016 2015 Anti-dilutive shares excluded from the computations of diluted earnings per share: Stock options, performance and restricted shares 1,095,453 757,960 Assumed conversion of exchangeable note hedges (a) — 892,885 Total 1,095,453 1,650,845 (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 required the assumed conversion of the 2015 Notes to be included in dilutive shares if the average stock price for the period exceeded the strike price, while the conversion of the hedges was excluded since they were anti-dilutive. The full dilutive effect of the 2015 Notes was included for the prior period presented. Rayonier did not distribute additional shares upon the February 2016 maturity of the warrants sold in conjunction with the 2015 Notes as the stock price did not exceed $28.11 per share. The warrants were not dilutive for the three months ended March 31, 2016 and 2015 as the average stock price for the periods the warrants were outstanding did not exceed the strike price. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES The Company is exposed to market risk related to potential fluctuations in foreign currency exchange rates and interest rates. The Company uses derivative financial instruments to mitigate the financial impact of exposure to these risks. Accounting for derivative financial instruments is governed by 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, 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 de minimis 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 New Zealand JV typically hedges 50% to 90% of its estimated foreign currency exposure with respect to the following three months forecasted sales and purchases, 50% to 75% of forecasted sales and purchases for the forward three to 12 months and up to 50% of the forward 12 to 18 months. Foreign currency exposure from the New Zealand JV’s trading operations is typically hedged based on the following three months forecasted sales and purchases. As of March 31, 2016 , foreign currency exchange contracts and foreign currency option contracts had maturity dates through June 2017 and July 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. In August 2015, the Company entered into foreign currency option contracts (notional amount of $332 million ) to mitigate the risk of fluctuations in foreign currency exchange rates when translating the New Zealand JV’s balance sheet to U.S. dollars. These contracts hedged a portion of the Company’s net investment in New Zealand and qualified as a net investment hedge. The fair value of these contracts was 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 qualified 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 did not have any ineffectiveness during the life of the hedges. The foreign currency option contracts matured on February 3, 2016. On February 1, 2016, the Company entered into foreign currency option contracts (notional amounts of $159.7 million and $154.6 million ) to mitigate the risk of fluctuations in foreign exchange rates when funding the planned capital contribution to the New Zealand JV. On February 29, 2016, the contracts were settled for a net premium of $0.3 million . The gain on these contracts was recorded in “Other operating income, net” as they did not qualify for hedge accounting treatment. On February 29, 2016, the Company purchased a foreign exchange forward contract (notional amount $159.5 million ) to mitigate the risk of fluctuations in foreign exchange rate contracts when funding the planned capital contribution to the New Zealand JV. The contract matured on March 3, 2016, resulting in a gain of $0.9 million . The gain on this contract was recorded in “Other operating income, net” as it did not qualify for hedge accounting treatment. Interest Rate Swaps The Company used 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. On March 3, 2016, as part of the capital contribution into the New Zealand JV, the Company settled all remaining New Zealand JV interest rate swaps for $9.3 million . 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. The following tables demonstrate the impact of the Company’s derivatives on the Consolidated Statements of Income and Comprehensive Income for the three months ended March 31, 2016 and 2015 . Three Months Ended Income Statement Location 2016 2015 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other comprehensive (loss) income $711 ($700 ) Foreign currency option contracts Other comprehensive (loss) income 833 (681 ) Interest rate swaps Other comprehensive (loss) income (14,886 ) — Derivatives designated as a net investment hedge: Foreign currency exchange contract Other comprehensive (loss) income (4,606 ) 591 Derivatives not designated as hedging instruments: Foreign currency exchange contracts Other operating income, net 895 — Foreign currency option contracts Other operating income, net 258 — Interest rate swaps Interest income and miscellaneous (expense), net (1,219 ) (1,855 ) During the next 12 months, the amount of the March 31, 2016 AOCI balance, net of tax, expected to be reclassified into earnings as a result of the maturation of the Company’s derivative instruments is a loss of approximately $0.8 million . The following table contains the notional amounts of the derivative financial instruments recorded in the Consolidated Balance Sheets: Notional Amount March 31, 2016 December 31, 2015 Derivatives designated as cash flow hedges: Foreign currency exchange contracts $23,950 $21,250 Foreign currency option contracts 88,700 107,200 Interest rate swaps 350,000 350,000 Derivatives designated as net investment hedges: Foreign currency option contracts — 331,588 Derivative not designated as a hedging instrument: Interest rate swaps — 130,169 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) March 31, 2016 December 31, 2015 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Prepaid and other current assets $221 $43 Other assets 131 — Other current liabilities (1,275 ) (1,449 ) Other non-current liabilities — (219 ) Foreign currency option contracts Prepaid and other current assets 711 560 Other assets 323 408 Other current liabilities (702 ) (1,393 ) Other non-current liabilities (141 ) (217 ) Interest rate swaps Other non-current liabilities (25,082 ) (10,197 ) Derivatives designated as net investment hedges: Foreign currency option contracts Prepaid and other current assets — 4,630 Other current liabilities — (24 ) Derivative not designated as a hedging instrument: Interest rate swaps Other non-current liabilities — (8,047 ) Total derivative contracts: Prepaid and other current assets $932 $5,233 Other assets 454 408 Total derivative assets $1,386 $5,641 Other current liabilities (1,977 ) (2,866 ) Other non-current liabilities (25,223 ) (18,680 ) Total derivative liabilities ($27,200 ) ($21,546 ) (a) See Note 12 — 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 | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Fair Value of Financial Instruments A three-level hierarchy that prioritizes the inputs used to measure fair value was established in the Accounting Standards Codification as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than quoted prices included in Level 1. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following table presents the carrying amount and estimated fair values of financial instruments held by the Company at March 31, 2016 and December 31, 2015 , using market information and what the Company believes to be appropriate valuation methodologies under generally accepted accounting principles: March 31, 2016 December 31, 2015 Asset (Liability) (a) Carrying Amount Fair Value Carrying Amount Fair Value Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $76,204 $76,204 — $51,777 $51,777 — Restricted cash (b) 12,912 12,912 — 23,525 23,525 — Current maturities of long-term debt (12,211 ) — (12,211 ) — — — Long-term debt (c) (857,429 ) — (875,329 ) (830,554 ) — (830,203 ) Interest rate swaps (d) (25,082 ) — (25,082 ) (18,244 ) — (18,244 ) Foreign currency exchange contracts (d) (923 ) — (923 ) (1,625 ) — (1,625 ) Foreign currency option contracts (d) 191 — 191 3,964 — 3,964 (a) The Company did not have Level 3 assets or liabilities at March 31, 2016 . (b) Restricted cash is recorded in “Other Assets” and represents the proceeds from LKE sales deposited with a third-party intermediary. (c) The carrying amount of long-term debt is presented net of capitalized debt costs on non-revolving debt. See Note 1 — Basis of Presentation for additional information. (d) See Note 11 — 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. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2016 | |
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 2016 , 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 2016 2015 2016 2015 Components of Net Periodic Benefit Cost Service cost $327 $371 $2 $3 Interest cost 869 830 12 13 Expected return on plan assets (1,008 ) (1,007 ) — — Amortization of prior service cost — 3 — — Amortization of losses (gains) 629 933 (12 ) 3 Net periodic benefit cost $817 $1,130 $2 $19 |
OTHER OPERATING INCOME, NET
OTHER OPERATING INCOME, NET | 3 Months Ended |
Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Other Operating Income, Net | OTHER OPERATING INCOME, NET Other operating income, net comprised the following: Three Months Ended March 31, 2016 2015 Lease income, primarily from hunting leases $4,559 $4,109 Other non-timber income 519 1,364 Foreign currency loss (295 ) (107 ) Loss on foreign currency exchange and option contracts (522 ) (134 ) Gain on foreign currency derivatives (a) 1,153 — Miscellaneous income, net 490 342 Total $5,904 $5,574 (a) The Company used foreign exchange derivatives to mitigate the risk of fluctuations in foreign exchange rates while awaiting the planned capital contribution to the New Zealand JV. |
INVENTORY
INVENTORY | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY As of March 31, 2016 and December 31, 2015 , Rayonier’s inventory was solely comprised of finished goods, as follows: March 31, 2016 December 31, 2015 Finished goods inventory Real estate inventory (a) $11,678 $12,252 Log inventory 5,765 3,099 Total inventory $17,443 $15,351 (a) Represents cost of HBU real estate (including capitalized development investments) expected to be sold within 12 months. |
RESTRICTED DEPOSITS
RESTRICTED DEPOSITS | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 , the Company had $12.9 million and $23.5 million , respectively, of proceeds from real estate sales classified as restricted cash in “Other Assets,” which were deposited with an LKE intermediary. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 3 Months Ended |
Mar. 31, 2016 | |
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 three months ended March 31, 2016 and the year ended December 31, 2015. All amounts are presented net of tax and exclude portions attributable to noncontrolling interest. Foreign currency translation gains/ (losses) Net investment hedges of New Zealand JV Cash flow hedges Employee benefit plans Total Balance as of December 31, 2014 $25,533 (145 ) ($1,548 ) ($28,665 ) ($4,825 ) Other comprehensive income/(loss) before reclassifications (27,983 ) 6,416 (14,444 ) (a) (354 ) (36,365 ) Amounts reclassified from accumulated other comprehensive loss — — 4,400 3,287 (b) 7,687 Net other comprehensive income/(loss) (27,983 ) 6,416 (10,044 ) 2,933 (28,678 ) Balance as of December 31, 2015 ($2,450 ) $6,271 ($11,592 ) ($25,732 ) ($33,503 ) Other comprehensive income/(loss) before reclassifications 4,396 — (14,336 ) (c) — (9,940 ) Amounts reclassified from accumulated other comprehensive loss — (4,606 ) 413 617 (3,576 ) Net other comprehensive income/(loss) 4,396 (4,606 ) (13,923 ) 617 (13,516 ) Recapitalization of New Zealand JV 3,622 — (184 ) — 3,438 Balance as of March 31, 2016 $5,568 $1,665 ($25,699 ) ($25,115 ) ($43,581 ) (a) Includes $10.2 million of other comprehensive loss related to interest rate swaps entered into in the third quarter 2015. See Note 11 — Derivative Financial Instruments and Hedging Activities for additional information. (b) This component of other comprehensive income is included in the computation of net periodic pension cost. See Note 13 — Employee Benefit Plans for additional information. (c) Includes $14.8 million of other comprehensive loss related to interest rate swaps entered into in third quarter 2015. See Note 11 — 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 three months ended March 31, 2016 and March 31, 2015 : Details about accumulated other comprehensive income components Amount reclassified from accumulated other comprehensive income Affected line item in the income statement March 31, 2016 March 31, 2015 Realized loss on foreign currency exchange contracts $334 $364 Other operating income, net Realized loss on foreign currency option contracts 554 293 Other operating income, net Noncontrolling interest (314 ) (230 ) Comprehensive (loss) income attributable to noncontrolling interest Income tax benefit on loss from foreign currency contracts (161 ) (135 ) Income tax benefit Net loss from accumulated other comprehensive income $413 $292 |
CONSOLIDATING FINANCIAL STATEME
CONSOLIDATING FINANCIAL STATEMENTS | 3 Months Ended |
Mar. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Consolidating Financial Statements | CONSOLIDATING FINANCIAL STATEMENTS The condensed consolidating financial information below follows the same accounting policies as described in the consolidated financial statements, except for the use of the equity method of accounting to reflect ownership interests in wholly-owned subsidiaries, which are eliminated upon consolidation, and the allocation of certain expenses of Rayonier Inc. incurred for the benefit of its subsidiaries. In March 2012 , Rayonier Inc. issued $325 million of 3.75% Senior Notes due 2022 . In connection with these notes, the Company provides the following condensed consolidating financial information in accordance with SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered . The subsidiary guarantors, Rayonier Operating Company LLC (“ROC”) and Rayonier TRS Holdings Inc., are wholly-owned by the Parent Company, Rayonier Inc. The notes are fully and unconditionally guaranteed on a joint and several basis by the guarantor subsidiaries. CONDENSED CONSOLIDATING STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME For the Three Months Ended March 31, 2016 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated SALES — — $134,843 — $134,843 Costs and Expenses Cost of sales — — 107,971 — 107,971 Selling and general expenses — 2,938 6,841 — 9,779 Other operating (income) expense, net — (1,155 ) (4,749 ) — (5,904 ) — 1,783 110,063 — 111,846 OPERATING (LOSS) INCOME — (1,783 ) 24,780 — 22,997 Interest expense (3,139 ) (2,144 ) (1,815 ) — (7,098 ) Interest and miscellaneous income (expense), net 2,038 681 (4,341 ) — (1,622 ) Equity in income from subsidiaries 15,573 18,997 — (34,570 ) — INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 14,472 15,751 18,624 (34,570 ) 14,277 Income tax (expense) benefit — (178 ) 959 — 781 NET INCOME 14,472 15,573 19,583 (34,570 ) 15,058 Less: Net income attributable to noncontrolling interest — — 586 — 586 NET INCOME ATTRIBUTABLE TO RAYONIER INC. 14,472 15,573 18,997 (34,570 ) 14,472 OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation adjustment, net of income tax 7,288 (4,606 ) 7,410 (7,288 ) 2,804 Cash flow hedges, net of income tax (13,923 ) (14,886 ) 1,112 13,923 (13,774 ) Actuarial change and amortization of pension and postretirement plans, net of income tax 617 617 — (617 ) 617 Total other comprehensive income (loss) (6,018 ) (18,875 ) 8,522 6,018 (10,353 ) COMPREHENSIVE INCOME (LOSS) 8,454 (3,302 ) 28,105 (28,552 ) 4,705 Less: Comprehensive loss attributable to noncontrolling interest — — (3,749 ) — (3,749 ) COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO RAYONIER INC. $8,454 ($3,302 ) $31,854 ($28,552 ) $8,454 CONDENSED CONSOLIDATING STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME For the Three Months Ended March 31, 2015 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated SALES — — $140,305 — $140,305 Costs and Expenses Cost of sales — — 107,234 — 107,234 Selling and general expenses — 4,949 5,949 — 10,898 Other operating income, net — — (5,574 ) — (5,574 ) — 4,949 107,609 — 112,558 OPERATING (LOSS) INCOME — (4,949 ) 32,696 — 27,747 Interest expense (3,168 ) (2,524 ) (2,852 ) — (8,544 ) Interest and miscellaneous income (expense), net 1,936 693 (4,123 ) — (1,494 ) Equity in income from subsidiaries 18,979 24,799 — (43,778 ) — INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 17,747 18,019 25,721 (43,778 ) 17,709 Income tax benefit (expense) — 960 (489 ) — 471 NET INCOME 17,747 18,979 25,232 (43,778 ) 18,180 Less: Net income attributable to noncontrolling interest — — 433 — 433 NET INCOME ATTRIBUTABLE TO RAYONIER INC. 17,747 18,979 24,799 (43,778 ) 17,747 OTHER COMPREHENSIVE LOSS (INCOME) Foreign currency translation adjustment, net of income tax (10,430 ) (10,430 ) (14,323 ) 20,860 (14,323 ) Cash flow hedges, net of income tax (615 ) (615 ) (946 ) 1,230 (946 ) Actuarial change and amortization of pension and postretirement plans, net of income tax 781 781 20 (801 ) 781 Total other comprehensive loss (10,264 ) (10,264 ) (15,249 ) 21,289 (14,488 ) COMPREHENSIVE INCOME (LOSS) 7,483 8,715 9,983 (22,489 ) 3,692 Less: Comprehensive loss attributable to noncontrolling interest — — (3,791 ) — (3,791 ) COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO RAYONIER INC. $7,483 $8,715 $13,774 ($22,489 ) $7,483 CONDENSED CONSOLIDATING BALANCE SHEETS As of March 31, 2016 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $8,773 $27,868 $39,563 — $76,204 Accounts receivable, less allowance for doubtful accounts — 318 27,179 — 27,497 Inventory — — 17,443 — 17,443 Prepaid expenses — 463 12,427 — 12,890 Other current assets — 245 932 — 1,177 Total current assets 8,773 28,894 97,544 — 135,211 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — 2,063,691 — 2,063,691 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS — — 66,618 — 66,618 NET PROPERTY, PLANT AND EQUIPMENT — 339 6,496 — 6,835 INVESTMENT IN SUBSIDIARIES 1,286,575 2,365,615 — (3,652,190 ) — INTERCOMPANY RECEIVABLE 34,272 (606,172 ) 571,900 — — OTHER ASSETS 3 19,007 40,772 — 59,782 TOTAL ASSETS $1,329,623 $1,807,683 $2,847,021 ($3,652,190 ) $2,332,137 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable 11 $1,164 $21,067 — $22,242 Current maturities of long-term debt — — 12,211 — 12,211 Accrued taxes — 54 4,022 — 4,076 Accrued payroll and benefits — 1,575 1,742 — 3,317 Accrued interest 6,094 973 306 — 7,373 Other current liabilities — 439 18,650 — 19,089 Total current liabilities 6,105 4,205 57,998 — 68,308 LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS 322,789 469,008 65,632 — 857,429 PENSION AND OTHER POSTRETIREMENT BENEFITS — 34,997 (684 ) — 34,313 OTHER NON-CURRENT LIABILITIES — 31,859 4,448 — 36,307 INTERCOMPANY PAYABLE (255,715 ) (18,961 ) 274,676 — — TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,256,444 1,286,575 2,365,615 (3,652,190 ) 1,256,444 Noncontrolling interest — — 79,336 — 79,336 TOTAL SHAREHOLDERS’ EQUITY 1,256,444 1,286,575 2,444,951 (3,652,190 ) 1,335,780 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,329,623 $1,807,683 $2,847,021 ($3,652,190 ) $2,332,137 CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2015 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $2,472 $13,217 $36,088 — $51,777 Accounts receivable, less allowance for doubtful accounts — 1,870 18,352 — 20,222 Inventory — — 15,351 — 15,351 Prepaid expenses — 443 12,211 — 12,654 Other current assets — 4,876 805 — 5,681 Total current assets 2,472 20,406 82,807 — 105,685 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — 2,066,780 — 2,066,780 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS — — 65,450 — 65,450 NET PROPERTY, PLANT AND EQUIPMENT — 330 6,412 — 6,742 INVESTMENT IN SUBSIDIARIES 1,321,681 2,212,405 — (3,534,086 ) — INTERCOMPANY RECEIVABLE 34,567 (610,450 ) 575,883 — — OTHER ASSETS 3 18,718 52,560 — 71,281 TOTAL ASSETS $1,358,723 $1,641,409 $2,849,892 ($3,534,086 ) $2,315,938 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable 609 $1,463 $19,407 — $21,479 Current maturities of long-term debt — — — — — Accrued taxes — (10 ) 3,695 — 3,685 Accrued payroll and benefits — 3,594 3,443 — 7,037 Accrued interest 3,047 666 2,440 — 6,153 Other current liabilities — 262 20,841 — 21,103 Total current liabilities 3,656 5,975 49,826 — 59,457 LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS 322,697 280,978 226,879 — 830,554 PENSION AND OTHER POSTRETIREMENT BENEFITS — 34,822 (685 ) — 34,137 OTHER NON-CURRENT LIABILITIES — 16,914 13,136 — 30,050 INTERCOMPANY PAYABLE (255,714 ) (18,961 ) 274,675 — — TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,288,084 1,321,681 2,212,405 (3,534,086 ) 1,288,084 Noncontrolling interest — — 73,656 — 73,656 TOTAL SHAREHOLDERS’ EQUITY 1,288,084 1,321,681 2,286,061 (3,534,086 ) 1,361,740 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,358,723 $1,641,409 $2,849,892 ($3,534,086 ) $2,315,938 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2016 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES $2,332 ($3,624 ) $32,327 — $31,035 INVESTING ACTIVITIES Capital expenditures — — (13,298 ) — (13,298 ) Real estate development investments — — (1,685 ) — (1,685 ) Purchase of timberlands — — (14,323 ) — (14,323 ) Change in restricted cash — — 10,613 — 10,613 Investment in subsidiaries — 1,136 — (1,136 ) — Other — — (1,590 ) — (1,590 ) CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES — 1,136 (20,283 ) (1,136 ) (20,283 ) FINANCING ACTIVITIES Issuance of debt — 213,000 72,552 — 285,552 Repayment of debt — (25,000 ) (215,752 ) — (240,752 ) Dividends paid (30,675 ) — — — (30,675 ) Proceeds from the issuance of common shares 18 — — — 18 Repurchase of common shares (690 ) — — — (690 ) Intercompany distributions 35,332 (170,861 ) 134,393 1,136 — Other (16 ) — — — (16 ) CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES 3,969 17,139 (8,807 ) 1,136 13,437 EFFECT OF EXCHANGE RATE CHANGES ON CASH — — 238 — 238 CASH AND CASH EQUIVALENTS Change in cash and cash equivalents 6,301 14,651 3,475 — 24,427 Balance, beginning of year 2,472 13,217 36,088 — 51,777 Balance, end of period $8,773 $27,868 $39,563 — $76,204 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2015 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated CASH PROVIDED BY OPERATING ACTIVITIES $6,735 $13,604 $42,105 ($9,046 ) $53,398 INVESTING ACTIVITIES Capital expenditures — — (13,164 ) — (13,164 ) Real estate development investments — — (276 ) — (276 ) Purchase of timberlands — — (23,070 ) — (23,070 ) Change in restricted cash — — (7,071 ) — (7,071 ) Investment in subsidiaries — (8,807 ) — 8,807 — Other — — (158 ) — (158 ) CASH USED FOR INVESTING ACTIVITIES — (8,807 ) (43,739 ) 8,807 (43,739 ) FINANCING ACTIVITIES Issuance of debt — 12,000 — — 12,000 Repayment of debt — (10,000 ) (1,371 ) — (11,371 ) Dividends paid (31,667 ) — — — (31,667 ) Proceeds from the issuance of common shares 546 — — — 546 Intercompany distributions — (9,333 ) 9,094 239 — Other (94 ) — — — (94 ) CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES (31,215 ) (7,333 ) 7,723 239 (30,586 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH — — (1,582 ) — (1,582 ) CASH AND CASH EQUIVALENTS Change in cash and cash equivalents (24,480 ) (2,536 ) 4,507 — (22,509 ) Balance, beginning of year 102,218 8,105 51,235 — 161,558 Balance, end of period $77,738 $5,569 $55,742 — $139,049 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reclassifications | Reclassifications Certain 2015 amounts have been reclassified to conform with the current year presentation, including changes in balance sheet presentation. During the first quarter of 2016, the Company reclassified capitalized debt costs related to non-revolving debt from Other Assets to Long Term Debt as a result of the adoption of ASU No. 2015-03, Interest - Imputation of Interest (Subtopic 835-50) - Simplifying the Presentation of Debt Issuance Costs, which is required to be applied on a retrospective basis. This reclassification is reflected in the March 31, 2016 and December 31, 2015 Consolidated Balance Sheets. A corresponding change has also been made to the Consolidated Statement of Cash Flows for both periods presented. |
New Accounting Standards | New Accounting Standards In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This update simplifies the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. ASU No. 2016-09 is effective for annual periods beginning after December 15, 2016 , and interim periods within those annual periods. Rayonier intends to adopt ASU No. 2016-09 in the Company’s first quarter 2017 Form 10-Q. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-05, Derivatives and Hedging (Topic 815): Effect of Derivative Contract Novations on Existing Hedge Accounting Relationships , which clarifies that a change in the counterparty to a derivative instrument that has been designated as the hedging instrument under Topic 815 does not, in and of itself, require de-designation of that hedging relationship provided that all other hedge accounting criteria continue to be met. ASU No. 2016-05 is effective for annual reporting periods beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. Rayonier intends to adopt ASU No. 2016-05 in the Company’s first quarter 2017 Form 10-Q filing, which the Company does not expect will have an impact on the consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which requires lessees to recognize most leases on their balance sheets related to the rights and obligations created by those leases. The ASU also requires additional qualitative and quantitative disclosures related to the nature, timing and uncertainty of cash flows arising from leases. ASU No. 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period. ASU No. 2016-02 is required to be applied retrospectively to all periods presented beginning in the period of adoption. Early adoption is permitted. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. In May 2014, the FASB and International Accounting Standards Board (“IASB”) jointly issued ASU No. 2014-09, Revenue from Contracts with Customers , a comprehensive new revenue recognition standard that will supersede current revenue recognition guidance. 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. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers—Identifying Performance Obligations and Licensing . The new standard clarifies the guidance for identifying performance obligations. 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 and has completed a preliminary analysis of the specific impacts to our New Zealand Timber segment. |
Segment Reporting | Sales between operating segments are made based on estimated fair market value and intercompany sales, purchases and profits (losses) are eliminated in consolidation. The Company evaluates financial performance based on segment operating income and Adjusted EBITDA. Asset information is not reported by segment, as the company does not produce asset information by segment internally. Operating income as presented in the Consolidated Statements of Income and Comprehensive Income is equal to segment income. Certain income (loss) items in the Consolidated Statements of Income and Comprehensive Income are not allocated to segments. These items, which include 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 and are included under “Corporate and other.” |
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, 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. |
SEGMENT AND GEOGRAPHICAL INFO28
SEGMENT AND GEOGRAPHICAL INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Segment information for the three months ended March 31, 2016 and 2015 were as follows: Three Months Ended SALES 2016 2015 Southern Timber $44,740 $35,531 Pacific Northwest Timber 19,309 19,154 New Zealand Timber 36,023 41,194 Real Estate 13,363 23,791 Trading 21,408 20,635 Total $134,843 $140,305 Three Months Ended OPERATING INCOME 2016 2015 Southern Timber $15,753 $12,413 Pacific Northwest Timber 1,385 2,587 New Zealand Timber 4,744 5,694 Real Estate 4,225 12,582 Trading 350 270 Corporate and other (3,460 ) (5,799 ) Total Operating Income 22,997 27,747 Unallocated interest expense and other (8,720 ) (10,038 ) Total Income before Income Taxes $14,277 $17,709 Three Months Ended DEPRECIATION, DEPLETION AND AMORTIZATION 2016 2015 Southern Timber $16,556 $14,301 Pacific Northwest Timber 4,639 3,790 New Zealand Timber 4,860 8,003 Real Estate 3,203 3,812 Trading — — Corporate and other 84 69 Total $29,342 $29,975 Three Months Ended NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT 2016 2015 Southern Timber — — Pacific Northwest Timber — — New Zealand Timber 1,824 — Real Estate 2,284 3,747 Trading — — Corporate and other — — Total $4,108 $3,747 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | Rayonier’s debt consisted of the following at March 31, 2016 : March 31, 2016 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 2.1% at March 31, 2016 350,000 Revolving Credit Facility borrowings due 2020 at a variable interest rate of 1.7% at March 31, 2016 105,000 Mortgage notes due 2017 at fixed interest rates of 4.35% 42,537 Solid waste bond due 2020 at a variable interest rate of 1.7% at March 31, 2016 15,000 New Zealand JV Working Capital Facility due 2016 at a variable interest rate of 3.2% at March 31, 2016 12,211 New Zealand JV noncontrolling interest shareholder loan at 0% interest rate 23,095 Total debt 872,843 Less: Current maturities of long-term debt (12,211 ) Less: Deferred financing costs (3,203 ) Long-term debt, net of deferred financing costs $857,429 |
Schedule of Maturities of Long-Term Debt | Principal payments due during the next five years and thereafter are as follows: 2016 $12,211 2017 (a) 42,000 2018 — 2019 — 2020 120,000 Thereafter 698,095 Total Debt $872,306 (a) The mortgage notes due in 2017 were recorded at a premium of $0.5 million as of March 31, 2016 . Upon maturity the liability will be $42 million . |
HIGHER AND BETTER USE TIMBERL30
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015 to March 31, 2016 is shown below: Higher and Better Use Timberlands and Real Estate Development Investments Land and Timber Development Investments Total Non-current portion at December 31, 2015 $57,897 $7,553 $65,450 Plus: Current portion (a) 6,019 6,233 12,252 Total Balance at December 31, 2015 63,916 13,786 77,702 Non-cash cost of land and improved development (539 ) (139 ) (678 ) Timber depletion from harvesting activities and basis of timber sold in real estate sales (467 ) — (467 ) Capitalized real estate development investments — 1,685 1,685 Capital expenditures (silviculture) 50 — 50 Intersegment transfers 4 — 4 Total Balance at March 31, 2016 62,964 15,332 78,296 Less: Current portion (a) (6,655 ) (5,023 ) (11,678 ) Non-current portion at March 31, 2016 $56,309 $10,309 $66,618 (a) The current portion of Higher and Better Use Timberlands and Real Estate Development Investments is recorded in Inventory. See Note 15 — Inventory for additional information. |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Payments | At March 31, 2016, the future minimum payments under non-cancellable operating and timberland leases were as follows: Operating Leases Timberland Leases (a) Purchase Obligations (b) Total Remaining 2016 $1,449 $7,262 $3,512 $12,223 2017 1,473 10,772 3,358 15,603 2018 763 9,275 3,163 13,201 2019 620 8,789 3,163 12,572 2020 534 8,348 3,163 12,045 Thereafter (c) 1,613 158,766 10,724 171,103 $6,452 $203,212 $27,083 $236,747 (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 (foreign exchange contracts and interest rate swaps) and standby letters of credit fees for industrial revenue bonds. (c) Includes 20 years of future minimum payments for perpetual Crown Forest Licenses (“CFL”). A CFL consists of a license to use public or government owned land to operate a commercial forest. The CFL's extend indefinitely and may only be terminated upon a 35 year termination notice from the government. If no termination notice is given, the CFLs renew automatically each year for a one year term. As of March 31, 2016 , the New Zealand JV has four CFL’s under termination notice, terminating in 2034, two in 2044 and 2049 as well as two fixed term CFL’s expiring in 2062. The annual license fee is determined based on current market rental value, with triennial rent reviews. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 Income tax expense at federal statutory rate ($4,997 ) 35.0 % ($6,198 ) 35.0 % U.S. and foreign REIT income & U.S. TRS taxable losses 4,360 (30.6 ) 7,502 (42.4 ) Foreign TRS operations 117 (0.8 ) 1,137 (6.4 ) U.S. net deferred tax asset valuation allowance (452 ) 3.2 (1,812 ) 10.2 Other (80 ) 0.6 (158 ) 0.9 Income tax (expense) benefit before discrete items ($1,052 ) 7.4 % $471 (2.7 )% Tax benefit recognized related to changes in the New Zealand JV deferred tax inventory 1,833 (12.9 ) — — Income tax benefit as reported $781 (5.5 )% $471 (2.7 )% |
GUARANTEES (Tables)
GUARANTEES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Guarantees [Abstract] | |
Schedule of Guarantor Obligations | As of March 31, 2016 , the following financial guarantees were outstanding: Financial Commitments Maximum Potential Payment Carrying Amount of Associated Liability Standby letters of credit (a) $16,549 $15,000 Guarantees (b) 2,254 43 Surety bonds (c) 906 — Total financial commitments $19,709 $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 March 31, 2016 , 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 2016 and 2017 and are expected to be renewed as required. |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 Net Income $15,058 $18,180 Less: Net income attributable to noncontrolling interest 586 433 Net income attributable to Rayonier Inc. $14,472 $17,747 Shares used for determining basic earnings per common share 122,556,239 126,614,334 Dilutive effect of: Stock options 53,526 168,680 Performance and restricted shares 35,124 51,494 Assumed conversion of Senior Exchangeable Notes (a) — 892,885 Assumed conversion of warrants (a) — — Shares used for determining diluted earnings per common share 122,644,889 127,727,393 Basic earnings per common share attributable to Rayonier Inc.: $0.12 $0.14 Diluted earnings per common share attributable to Rayonier Inc.: $0.12 $0.14 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Three Months Ended 2016 2015 Anti-dilutive shares excluded from the computations of diluted earnings per share: Stock options, performance and restricted shares 1,095,453 757,960 Assumed conversion of exchangeable note hedges (a) — 892,885 Total 1,095,453 1,650,845 (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 required the assumed conversion of the 2015 Notes to be included in dilutive shares if the average stock price for the period exceeded the strike price, while the conversion of the hedges was excluded since they were anti-dilutive. The full dilutive effect of the 2015 Notes was included for the prior period presented. Rayonier did not distribute additional shares upon the February 2016 maturity of the warrants sold in conjunction with the 2015 Notes as the stock price did not exceed $28.11 per share. The warrants were not dilutive for the three months ended March 31, 2016 and 2015 as the average stock price for the periods the warrants were outstanding did not exceed the strike price. |
DERIVATIVE FINANCIAL INSTRUME35
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 months ended March 31, 2016 and 2015 . Three Months Ended Income Statement Location 2016 2015 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other comprehensive (loss) income $711 ($700 ) Foreign currency option contracts Other comprehensive (loss) income 833 (681 ) Interest rate swaps Other comprehensive (loss) income (14,886 ) — Derivatives designated as a net investment hedge: Foreign currency exchange contract Other comprehensive (loss) income (4,606 ) 591 Derivatives not designated as hedging instruments: Foreign currency exchange contracts Other operating income, net 895 — Foreign currency option contracts Other operating income, net 258 — Interest rate swaps Interest income and miscellaneous (expense), net (1,219 ) (1,855 ) |
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 March 31, 2016 December 31, 2015 Derivatives designated as cash flow hedges: Foreign currency exchange contracts $23,950 $21,250 Foreign currency option contracts 88,700 107,200 Interest rate swaps 350,000 350,000 Derivatives designated as net investment hedges: Foreign currency option contracts — 331,588 Derivative not designated as a hedging instrument: Interest rate swaps — 130,169 |
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) March 31, 2016 December 31, 2015 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Prepaid and other current assets $221 $43 Other assets 131 — Other current liabilities (1,275 ) (1,449 ) Other non-current liabilities — (219 ) Foreign currency option contracts Prepaid and other current assets 711 560 Other assets 323 408 Other current liabilities (702 ) (1,393 ) Other non-current liabilities (141 ) (217 ) Interest rate swaps Other non-current liabilities (25,082 ) (10,197 ) Derivatives designated as net investment hedges: Foreign currency option contracts Prepaid and other current assets — 4,630 Other current liabilities — (24 ) Derivative not designated as a hedging instrument: Interest rate swaps Other non-current liabilities — (8,047 ) Total derivative contracts: Prepaid and other current assets $932 $5,233 Other assets 454 408 Total derivative assets $1,386 $5,641 Other current liabilities (1,977 ) (2,866 ) Other non-current liabilities (25,223 ) (18,680 ) Total derivative liabilities ($27,200 ) ($21,546 ) (a) See Note 12 — 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) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 , using market information and what the Company believes to be appropriate valuation methodologies under generally accepted accounting principles: March 31, 2016 December 31, 2015 Asset (Liability) (a) Carrying Amount Fair Value Carrying Amount Fair Value Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $76,204 $76,204 — $51,777 $51,777 — Restricted cash (b) 12,912 12,912 — 23,525 23,525 — Current maturities of long-term debt (12,211 ) — (12,211 ) — — — Long-term debt (c) (857,429 ) — (875,329 ) (830,554 ) — (830,203 ) Interest rate swaps (d) (25,082 ) — (25,082 ) (18,244 ) — (18,244 ) Foreign currency exchange contracts (d) (923 ) — (923 ) (1,625 ) — (1,625 ) Foreign currency option contracts (d) 191 — 191 3,964 — 3,964 (a) The Company did not have Level 3 assets or liabilities at March 31, 2016 . (b) Restricted cash is recorded in “Other Assets” and represents the proceeds from LKE sales deposited with a third-party intermediary. (c) The carrying amount of long-term debt is presented net of capitalized debt costs on non-revolving debt. See Note 1 — Basis of Presentation for additional information. (d) See Note 11 — Derivative Financial Instruments and Hedging Activities for information regarding the Balance Sheet classification of the Company’s derivative financial instruments. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost | The net pension and postretirement benefit costs that have been recorded are shown in the following table: Pension Postretirement Three Months Ended Three Months Ended 2016 2015 2016 2015 Components of Net Periodic Benefit Cost Service cost $327 $371 $2 $3 Interest cost 869 830 12 13 Expected return on plan assets (1,008 ) (1,007 ) — — Amortization of prior service cost — 3 — — Amortization of losses (gains) 629 933 (12 ) 3 Net periodic benefit cost $817 $1,130 $2 $19 |
OTHER OPERATING INCOME, NET (Ta
OTHER OPERATING INCOME, NET (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | |
Interest and Other Income | Other operating income, net comprised the following: Three Months Ended March 31, 2016 2015 Lease income, primarily from hunting leases $4,559 $4,109 Other non-timber income 519 1,364 Foreign currency loss (295 ) (107 ) Loss on foreign currency exchange and option contracts (522 ) (134 ) Gain on foreign currency derivatives (a) 1,153 — Miscellaneous income, net 490 342 Total $5,904 $5,574 (a) The Company used foreign exchange derivatives to mitigate the risk of fluctuations in foreign exchange rates while awaiting the planned capital contribution to the New Zealand JV. |
INVENTORY (Tables)
INVENTORY (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | As of March 31, 2016 and December 31, 2015 , Rayonier’s inventory was solely comprised of finished goods, as follows: March 31, 2016 December 31, 2015 Finished goods inventory Real estate inventory (a) $11,678 $12,252 Log inventory 5,765 3,099 Total inventory $17,443 $15,351 (a) Represents cost of HBU real estate (including capitalized development investments) expected to be sold within 12 months. |
ACCUMULATED OTHER COMPREHENSI40
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 three months ended March 31, 2016 and the year ended December 31, 2015. All amounts are presented net of tax and exclude portions attributable to noncontrolling interest. Foreign currency translation gains/ (losses) Net investment hedges of New Zealand JV Cash flow hedges Employee benefit plans Total Balance as of December 31, 2014 $25,533 (145 ) ($1,548 ) ($28,665 ) ($4,825 ) Other comprehensive income/(loss) before reclassifications (27,983 ) 6,416 (14,444 ) (a) (354 ) (36,365 ) Amounts reclassified from accumulated other comprehensive loss — — 4,400 3,287 (b) 7,687 Net other comprehensive income/(loss) (27,983 ) 6,416 (10,044 ) 2,933 (28,678 ) Balance as of December 31, 2015 ($2,450 ) $6,271 ($11,592 ) ($25,732 ) ($33,503 ) Other comprehensive income/(loss) before reclassifications 4,396 — (14,336 ) (c) — (9,940 ) Amounts reclassified from accumulated other comprehensive loss — (4,606 ) 413 617 (3,576 ) Net other comprehensive income/(loss) 4,396 (4,606 ) (13,923 ) 617 (13,516 ) Recapitalization of New Zealand JV 3,622 — (184 ) — 3,438 Balance as of March 31, 2016 $5,568 $1,665 ($25,699 ) ($25,115 ) ($43,581 ) (a) Includes $10.2 million of other comprehensive loss related to interest rate swaps entered into in the third quarter 2015. See Note 11 — Derivative Financial Instruments and Hedging Activities for additional information. (b) This component of other comprehensive income is included in the computation of net periodic pension cost. See Note 13 — Employee Benefit Plans for additional information. (c) Includes $14.8 million of other comprehensive loss related to interest rate swaps entered into in third quarter 2015. See Note 11 — 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 three months ended March 31, 2016 and March 31, 2015 : Details about accumulated other comprehensive income components Amount reclassified from accumulated other comprehensive income Affected line item in the income statement March 31, 2016 March 31, 2015 Realized loss on foreign currency exchange contracts $334 $364 Other operating income, net Realized loss on foreign currency option contracts 554 293 Other operating income, net Noncontrolling interest (314 ) (230 ) Comprehensive (loss) income attributable to noncontrolling interest Income tax benefit on loss from foreign currency contracts (161 ) (135 ) Income tax benefit Net loss from accumulated other comprehensive income $413 $292 |
CONSOLIDATING FINANCIAL STATE41
CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Consolidating Statements of (Loss) Income and Comprehensive (Loss) Income | CONDENSED CONSOLIDATING STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME For the Three Months Ended March 31, 2016 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated SALES — — $134,843 — $134,843 Costs and Expenses Cost of sales — — 107,971 — 107,971 Selling and general expenses — 2,938 6,841 — 9,779 Other operating (income) expense, net — (1,155 ) (4,749 ) — (5,904 ) — 1,783 110,063 — 111,846 OPERATING (LOSS) INCOME — (1,783 ) 24,780 — 22,997 Interest expense (3,139 ) (2,144 ) (1,815 ) — (7,098 ) Interest and miscellaneous income (expense), net 2,038 681 (4,341 ) — (1,622 ) Equity in income from subsidiaries 15,573 18,997 — (34,570 ) — INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 14,472 15,751 18,624 (34,570 ) 14,277 Income tax (expense) benefit — (178 ) 959 — 781 NET INCOME 14,472 15,573 19,583 (34,570 ) 15,058 Less: Net income attributable to noncontrolling interest — — 586 — 586 NET INCOME ATTRIBUTABLE TO RAYONIER INC. 14,472 15,573 18,997 (34,570 ) 14,472 OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation adjustment, net of income tax 7,288 (4,606 ) 7,410 (7,288 ) 2,804 Cash flow hedges, net of income tax (13,923 ) (14,886 ) 1,112 13,923 (13,774 ) Actuarial change and amortization of pension and postretirement plans, net of income tax 617 617 — (617 ) 617 Total other comprehensive income (loss) (6,018 ) (18,875 ) 8,522 6,018 (10,353 ) COMPREHENSIVE INCOME (LOSS) 8,454 (3,302 ) 28,105 (28,552 ) 4,705 Less: Comprehensive loss attributable to noncontrolling interest — — (3,749 ) — (3,749 ) COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO RAYONIER INC. $8,454 ($3,302 ) $31,854 ($28,552 ) $8,454 CONDENSED CONSOLIDATING STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME For the Three Months Ended March 31, 2015 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated SALES — — $140,305 — $140,305 Costs and Expenses Cost of sales — — 107,234 — 107,234 Selling and general expenses — 4,949 5,949 — 10,898 Other operating income, net — — (5,574 ) — (5,574 ) — 4,949 107,609 — 112,558 OPERATING (LOSS) INCOME — (4,949 ) 32,696 — 27,747 Interest expense (3,168 ) (2,524 ) (2,852 ) — (8,544 ) Interest and miscellaneous income (expense), net 1,936 693 (4,123 ) — (1,494 ) Equity in income from subsidiaries 18,979 24,799 — (43,778 ) — INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 17,747 18,019 25,721 (43,778 ) 17,709 Income tax benefit (expense) — 960 (489 ) — 471 NET INCOME 17,747 18,979 25,232 (43,778 ) 18,180 Less: Net income attributable to noncontrolling interest — — 433 — 433 NET INCOME ATTRIBUTABLE TO RAYONIER INC. 17,747 18,979 24,799 (43,778 ) 17,747 OTHER COMPREHENSIVE LOSS (INCOME) Foreign currency translation adjustment, net of income tax (10,430 ) (10,430 ) (14,323 ) 20,860 (14,323 ) Cash flow hedges, net of income tax (615 ) (615 ) (946 ) 1,230 (946 ) Actuarial change and amortization of pension and postretirement plans, net of income tax 781 781 20 (801 ) 781 Total other comprehensive loss (10,264 ) (10,264 ) (15,249 ) 21,289 (14,488 ) COMPREHENSIVE INCOME (LOSS) 7,483 8,715 9,983 (22,489 ) 3,692 Less: Comprehensive loss attributable to noncontrolling interest — — (3,791 ) — (3,791 ) COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO RAYONIER INC. $7,483 $8,715 $13,774 ($22,489 ) $7,483 |
Schedule of Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS As of March 31, 2016 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $8,773 $27,868 $39,563 — $76,204 Accounts receivable, less allowance for doubtful accounts — 318 27,179 — 27,497 Inventory — — 17,443 — 17,443 Prepaid expenses — 463 12,427 — 12,890 Other current assets — 245 932 — 1,177 Total current assets 8,773 28,894 97,544 — 135,211 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — 2,063,691 — 2,063,691 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS — — 66,618 — 66,618 NET PROPERTY, PLANT AND EQUIPMENT — 339 6,496 — 6,835 INVESTMENT IN SUBSIDIARIES 1,286,575 2,365,615 — (3,652,190 ) — INTERCOMPANY RECEIVABLE 34,272 (606,172 ) 571,900 — — OTHER ASSETS 3 19,007 40,772 — 59,782 TOTAL ASSETS $1,329,623 $1,807,683 $2,847,021 ($3,652,190 ) $2,332,137 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable 11 $1,164 $21,067 — $22,242 Current maturities of long-term debt — — 12,211 — 12,211 Accrued taxes — 54 4,022 — 4,076 Accrued payroll and benefits — 1,575 1,742 — 3,317 Accrued interest 6,094 973 306 — 7,373 Other current liabilities — 439 18,650 — 19,089 Total current liabilities 6,105 4,205 57,998 — 68,308 LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS 322,789 469,008 65,632 — 857,429 PENSION AND OTHER POSTRETIREMENT BENEFITS — 34,997 (684 ) — 34,313 OTHER NON-CURRENT LIABILITIES — 31,859 4,448 — 36,307 INTERCOMPANY PAYABLE (255,715 ) (18,961 ) 274,676 — — TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,256,444 1,286,575 2,365,615 (3,652,190 ) 1,256,444 Noncontrolling interest — — 79,336 — 79,336 TOTAL SHAREHOLDERS’ EQUITY 1,256,444 1,286,575 2,444,951 (3,652,190 ) 1,335,780 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,329,623 $1,807,683 $2,847,021 ($3,652,190 ) $2,332,137 CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2015 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $2,472 $13,217 $36,088 — $51,777 Accounts receivable, less allowance for doubtful accounts — 1,870 18,352 — 20,222 Inventory — — 15,351 — 15,351 Prepaid expenses — 443 12,211 — 12,654 Other current assets — 4,876 805 — 5,681 Total current assets 2,472 20,406 82,807 — 105,685 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — 2,066,780 — 2,066,780 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS — — 65,450 — 65,450 NET PROPERTY, PLANT AND EQUIPMENT — 330 6,412 — 6,742 INVESTMENT IN SUBSIDIARIES 1,321,681 2,212,405 — (3,534,086 ) — INTERCOMPANY RECEIVABLE 34,567 (610,450 ) 575,883 — — OTHER ASSETS 3 18,718 52,560 — 71,281 TOTAL ASSETS $1,358,723 $1,641,409 $2,849,892 ($3,534,086 ) $2,315,938 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable 609 $1,463 $19,407 — $21,479 Current maturities of long-term debt — — — — — Accrued taxes — (10 ) 3,695 — 3,685 Accrued payroll and benefits — 3,594 3,443 — 7,037 Accrued interest 3,047 666 2,440 — 6,153 Other current liabilities — 262 20,841 — 21,103 Total current liabilities 3,656 5,975 49,826 — 59,457 LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS 322,697 280,978 226,879 — 830,554 PENSION AND OTHER POSTRETIREMENT BENEFITS — 34,822 (685 ) — 34,137 OTHER NON-CURRENT LIABILITIES — 16,914 13,136 — 30,050 INTERCOMPANY PAYABLE (255,714 ) (18,961 ) 274,675 — — TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,288,084 1,321,681 2,212,405 (3,534,086 ) 1,288,084 Noncontrolling interest — — 73,656 — 73,656 TOTAL SHAREHOLDERS’ EQUITY 1,288,084 1,321,681 2,286,061 (3,534,086 ) 1,361,740 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,358,723 $1,641,409 $2,849,892 ($3,534,086 ) $2,315,938 |
Schedule of Condensed Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2016 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES $2,332 ($3,624 ) $32,327 — $31,035 INVESTING ACTIVITIES Capital expenditures — — (13,298 ) — (13,298 ) Real estate development investments — — (1,685 ) — (1,685 ) Purchase of timberlands — — (14,323 ) — (14,323 ) Change in restricted cash — — 10,613 — 10,613 Investment in subsidiaries — 1,136 — (1,136 ) — Other — — (1,590 ) — (1,590 ) CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES — 1,136 (20,283 ) (1,136 ) (20,283 ) FINANCING ACTIVITIES Issuance of debt — 213,000 72,552 — 285,552 Repayment of debt — (25,000 ) (215,752 ) — (240,752 ) Dividends paid (30,675 ) — — — (30,675 ) Proceeds from the issuance of common shares 18 — — — 18 Repurchase of common shares (690 ) — — — (690 ) Intercompany distributions 35,332 (170,861 ) 134,393 1,136 — Other (16 ) — — — (16 ) CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES 3,969 17,139 (8,807 ) 1,136 13,437 EFFECT OF EXCHANGE RATE CHANGES ON CASH — — 238 — 238 CASH AND CASH EQUIVALENTS Change in cash and cash equivalents 6,301 14,651 3,475 — 24,427 Balance, beginning of year 2,472 13,217 36,088 — 51,777 Balance, end of period $8,773 $27,868 $39,563 — $76,204 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2015 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated CASH PROVIDED BY OPERATING ACTIVITIES $6,735 $13,604 $42,105 ($9,046 ) $53,398 INVESTING ACTIVITIES Capital expenditures — — (13,164 ) — (13,164 ) Real estate development investments — — (276 ) — (276 ) Purchase of timberlands — — (23,070 ) — (23,070 ) Change in restricted cash — — (7,071 ) — (7,071 ) Investment in subsidiaries — (8,807 ) — 8,807 — Other — — (158 ) — (158 ) CASH USED FOR INVESTING ACTIVITIES — (8,807 ) (43,739 ) 8,807 (43,739 ) FINANCING ACTIVITIES Issuance of debt — 12,000 — — 12,000 Repayment of debt — (10,000 ) (1,371 ) — (11,371 ) Dividends paid (31,667 ) — — — (31,667 ) Proceeds from the issuance of common shares 546 — — — 546 Intercompany distributions — (9,333 ) 9,094 239 — Other (94 ) — — — (94 ) CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES (31,215 ) (7,333 ) 7,723 239 (30,586 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH — — (1,582 ) — (1,582 ) CASH AND CASH EQUIVALENTS Change in cash and cash equivalents (24,480 ) (2,536 ) 4,507 — (22,509 ) Balance, beginning of year 102,218 8,105 51,235 — 161,558 Balance, end of period $77,738 $5,569 $55,742 — $139,049 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) a in Thousands, $ in Millions | Apr. 29, 2016USD ($)a | Mar. 31, 2016a |
Schedule of Equity Method Investments [Line Items] | ||
Acres of timberland owned | 400 | |
Subsequent Event | ||
Schedule of Equity Method Investments [Line Items] | ||
Acres of timberlands acquired | 61 | |
Purchase price | $ | $ 263 | |
Menesha Forest Products Corporation | Subsequent Event | ||
Schedule of Equity Method Investments [Line Items] | ||
Acres of timberland owned | 132 |
BASIS OF PRESENTATION (Narrativ
BASIS OF PRESENTATION (Narrative 2) (Details) - Subsequent Event - Disposal Group, Not Discontinued Operations a in Thousands, $ in Millions | Apr. 28, 2016USD ($)a |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Acres of Timberland Divested | a | 55 |
Consideration received from sale | $ | $ 130 |
BASIS OF PRESENTATION (Narrat44
BASIS OF PRESENTATION (Narrative 3) (Details) - USD ($) | Apr. 28, 2016 | Aug. 05, 2015 |
Subsequent Event | ||
Debt Instrument [Line Items] | ||
Line of Credit Amount Used for Acquisition, Net of Dispositions | $ 130,000,000 | |
Repayments of Lines of Credit | $ 105,000,000 | |
Line of Credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 550,000,000 | |
Term Loan Expiring 2026 | Line of Credit | Subsequent Event | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Term | 10 years | |
Maximum borrowing capacity | $ 300,000,000 |
JOINT VENTURE INVESTMENT (Detai
JOINT VENTURE INVESTMENT (Details) a in Millions, NZD in Millions | Mar. 03, 2016NZD | Mar. 31, 2016a | Mar. 02, 2016 |
Schedule of Equity Method Investments [Line Items] | |||
Acres of timberland owned | a | 0.4 | ||
Ownership percentage by parent | 77.00% | 65.00% | |
Step acquisition percentage equity interest in acquiree | 23.00% | ||
Revolving Credit Facility Due 2016 Variable Interest Rate | |||
Schedule of Equity Method Investments [Line Items] | |||
Purchase price of additional interest | NZD | NZD 235 |
SEGMENT AND GEOGRAPHICAL INFO46
SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Segment Sales) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
SALES | $ 134,843 | $ 140,305 |
Operating Segments | Southern Timber | ||
Segment Reporting Information [Line Items] | ||
SALES | 44,740 | 35,531 |
Operating Segments | Pacific Northwest Timber | ||
Segment Reporting Information [Line Items] | ||
SALES | 19,309 | 19,154 |
Operating Segments | New Zealand Timber | ||
Segment Reporting Information [Line Items] | ||
SALES | 36,023 | 41,194 |
Operating Segments | Real Estate | ||
Segment Reporting Information [Line Items] | ||
SALES | 13,363 | 23,791 |
Operating Segments | Trading | ||
Segment Reporting Information [Line Items] | ||
SALES | $ 21,408 | $ 20,635 |
SEGMENT AND GEOGRAPHICAL INFO47
SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Operating Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Total Operating Income | $ 22,997 | $ 27,747 |
Unallocated interest expense and other | (8,720) | (10,038) |
INCOME BEFORE INCOME TAXES | 14,277 | 17,709 |
Operating Segments | Southern Timber | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | 15,753 | 12,413 |
Operating Segments | Pacific Northwest Timber | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | 1,385 | 2,587 |
Operating Segments | New Zealand Timber | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | 4,744 | 5,694 |
Operating Segments | Real Estate | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | 4,225 | 12,582 |
Operating Segments | Trading | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | 350 | 270 |
Corporate and other | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | $ (3,460) | $ (5,799) |
SEGMENT AND GEOGRAPHICAL INFO48
SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Depreciation, Depletion and Amortization) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Depreciation, depletion and amortization | $ 29,342 | $ 29,975 |
Operating Segments | Southern Timber | ||
Segment Reporting Information [Line Items] | ||
Depreciation, depletion and amortization | 16,556 | 14,301 |
Operating Segments | Pacific Northwest Timber | ||
Segment Reporting Information [Line Items] | ||
Depreciation, depletion and amortization | 4,639 | 3,790 |
Operating Segments | New Zealand Timber | ||
Segment Reporting Information [Line Items] | ||
Depreciation, depletion and amortization | 4,860 | 8,003 |
Operating Segments | Real Estate | ||
Segment Reporting Information [Line Items] | ||
Depreciation, depletion and amortization | 3,203 | 3,812 |
Operating Segments | Trading | ||
Segment Reporting Information [Line Items] | ||
Depreciation, depletion and amortization | 0 | 0 |
Corporate and other | ||
Segment Reporting Information [Line Items] | ||
Depreciation, depletion and amortization | $ 84 | $ 69 |
SEGMENT AND GEOGRAPHICAL INFO49
SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Non-Cash Cost of Land and Improved Development) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Non-cash cost of land and improved development | $ 4,108 | $ 3,747 |
Operating Segments | Southern Timber | ||
Segment Reporting Information [Line Items] | ||
Non-cash cost of land and improved development | 0 | 0 |
Operating Segments | Pacific Northwest Timber | ||
Segment Reporting Information [Line Items] | ||
Non-cash cost of land and improved development | 0 | 0 |
Operating Segments | New Zealand Timber | ||
Segment Reporting Information [Line Items] | ||
Non-cash cost of land and improved development | 1,824 | 0 |
Operating Segments | Real Estate | ||
Segment Reporting Information [Line Items] | ||
Non-cash cost of land and improved development | 2,284 | 3,747 |
Operating Segments | Trading | ||
Segment Reporting Information [Line Items] | ||
Non-cash cost of land and improved development | 0 | 0 |
Corporate and other | ||
Segment Reporting Information [Line Items] | ||
Non-cash cost of land and improved development | $ 0 | $ 0 |
DEBT (Schedule of Long Term Deb
DEBT (Schedule of Long Term Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 872,843 | |
Less: Current maturities of long-term debt | (12,211) | $ 0 |
Less: Deferred financing costs | (3,203) | |
Long-term debt, net of deferred financing costs | 857,429 | $ 830,554 |
Senior Notes due 2022 at a fixed interest rate of 3.75% | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 325,000 | |
Fixed interest rate | 3.75% | |
Term Credit Agreement borrowings due 2024 at a variable interest rate of 2.1% at March 31, 2016 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 350,000 | |
Variable interest rate | 2.10% | |
Revolving Credit Facility borrowings due 2020 at a variable interest rate of 1.7% at March 31, 2016 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 105,000 | |
Variable interest rate | 1.70% | |
Mortgage notes due 2017 at fixed interest rates of 4.35% | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 42,537 | |
Fixed interest rate | 4.35% | |
Solid waste bond due 2020 at a variable interest rate of 1.7% at March 31, 2016 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 15,000 | |
Variable interest rate | 1.70% | |
New Zealand JV Working Capital Facility due 2016 at a variable interest rate of 3.2% at March 31, 2016 | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 12,211 | |
Variable interest rate | 3.20% | |
New Zealand JV noncontrolling interest shareholder loan at 0% interest rate | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $ 23,095 | |
Fixed interest rate | 0.00% |
DEBT (Schedule of Long Term Mat
DEBT (Schedule of Long Term Maturities) (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,016 | $ 12,211 |
2,017 | 42,000 |
2,018 | 0 |
2,019 | 0 |
2,020 | 120,000 |
Thereafter | 698,095 |
Total Debt | 872,306 |
Debt Instrument, Unamortized Premium | $ 500 |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) - USD ($) | Mar. 03, 2016 | Aug. 05, 2015 | Aug. 31, 2015 | Mar. 31, 2016 |
Term Loan Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 350,000,000 | |||
Debt Instrument, Term | 9 years | |||
Basis points on periodic interest rate | 1.625% | |||
Periodic effective interest rate | 3.30% | |||
Unsecured Revolving Credit Agreement Expiring 2020 | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 200,000,000 | |||
Debt Instrument, Term | 5 years | |||
Basis points on periodic interest rate | 1.25% | |||
Basis point credit line fee | 0.175% | |||
Proceeds from Lines of Credit | $ 8,000,000 | |||
Remaining borrowing capacity | 93,300,000 | |||
Revolving Credit Facility Due 2016 | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 200,000,000 | |||
Farm Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 100,000,000 | |||
Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 550,000,000 | |||
Tranche A | ||||
Debt Instrument [Line Items] | ||||
Repayments of Lines of Credit | $ 155,000,000 | |||
Working Capital Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Remaining borrowing capacity | 15,400,000 | |||
New Zealand JV noncontrolling interest shareholder loan at 0% interest rate | Long-term Debt | ||||
Debt Instrument [Line Items] | ||||
Increase in debt due to favorable changes in exchange rates | 200,000 | |||
New Zealand JV | Working Capital Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | 27,600,000 | |||
New Zealand JV | Working Capital Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Repayments of working capital facility | 12,200,000 | |||
New Zealand JV | New Zealand JV noncontrolling interest shareholder loan at 0% interest rate | ||||
Debt Instrument [Line Items] | ||||
Repayments of shareholder loan | 300,000 | |||
Standby Letters of Credit | Unsecured Revolving Credit Agreement Expiring 2020 | ||||
Debt Instrument [Line Items] | ||||
Amount to secure outstanding letters of credit | $ 1,700,000 |
HIGHER AND BETTER USE TIMBERL53
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (Analysis of Higher and Better Use Timberlands and Real Estate Development Investments) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Real Estate, Land and Land Development Costs [Roll Forward] | |
Non-current portion, Beginning Balance | $ 65,450 |
Plus: Current portion, Beginning Balance | 12,252 |
Total Balance, Beginning Balance | 77,702 |
Non-cash cost of land and improved development | (678) |
Timber depletion from harvesting activities and basis of timber sold in real estate sales | (467) |
Capitalized real estate development investments | 1,685 |
Capital expenditures (silviculture) | 50 |
Intersegment transfers | 4 |
Total Balance, Ending Balance | 78,296 |
Less: Current portion, Ending Balance | (11,678) |
Non-current portion, Ending Balance | 66,618 |
Land and Timber | |
Real Estate, Land and Land Development Costs [Roll Forward] | |
Non-current portion, Beginning Balance | 57,897 |
Plus: Current portion, Beginning Balance | 6,019 |
Total Balance, Beginning Balance | 63,916 |
Non-cash cost of land and improved development | (539) |
Timber depletion from harvesting activities and basis of timber sold in real estate sales | (467) |
Capitalized real estate development investments | 0 |
Capital expenditures (silviculture) | 50 |
Intersegment transfers | 4 |
Total Balance, Ending Balance | 62,964 |
Less: Current portion, Ending Balance | (6,655) |
Non-current portion, Ending Balance | 56,309 |
Development Investments | |
Real Estate, Land and Land Development Costs [Roll Forward] | |
Non-current portion, Beginning Balance | 7,553 |
Plus: Current portion, Beginning Balance | 6,233 |
Total Balance, Beginning Balance | 13,786 |
Non-cash cost of land and improved development | (139) |
Timber depletion from harvesting activities and basis of timber sold in real estate sales | 0 |
Capitalized real estate development investments | 1,685 |
Capital expenditures (silviculture) | 0 |
Intersegment transfers | 0 |
Total Balance, Ending Balance | 15,332 |
Less: Current portion, Ending Balance | (5,023) |
Non-current portion, Ending Balance | $ 10,309 |
COMMITMENTS (Narrative) (Detail
COMMITMENTS (Narrative) (Details) - Timberland Leases | 3 Months Ended |
Mar. 31, 2016 | |
United States | Minimum | |
Loss Contingencies [Line Items] | |
Contract terms, in years | 30 years |
United States | Maximum | |
Loss Contingencies [Line Items] | |
Contract terms, in years | 65 years |
New Zealand | Minimum | |
Loss Contingencies [Line Items] | |
Contract terms, in years | 30 years |
New Zealand | Maximum | |
Loss Contingencies [Line Items] | |
Contract terms, in years | 99 years |
COMMITMENTS (Future Minimum Pay
COMMITMENTS (Future Minimum Payments) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($)lease | |
Recorded Unconditional Purchase Obligation, Fiscal Year Maturity Schedule [Abstract] | |
Remaining 2,016 | $ 3,512 |
2,017 | 3,358 |
2,018 | 3,163 |
2,019 | 3,163 |
2,020 | 3,163 |
Thereafter | 10,724 |
Purchase obligation, total | 27,083 |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Remaining 2,016 | 12,223 |
2,017 | 15,603 |
2,018 | 13,201 |
2,019 | 12,572 |
2,020 | 12,045 |
Thereafter | 171,103 |
Total | 236,747 |
Operating Leases | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Remaining 2,016 | 1,449 |
2,017 | 1,473 |
2,018 | 763 |
2,019 | 620 |
2,020 | 534 |
Thereafter | 1,613 |
Operating leases, total | 6,452 |
Timberland Leases | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
Remaining 2,016 | 7,262 |
2,017 | 10,772 |
2,018 | 9,275 |
2,019 | 8,789 |
2,020 | 8,348 |
Thereafter | 158,766 |
Operating leases, total | $ 203,212 |
Matariki Crown Forest Licenses | |
Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Future Minimum Payments Included, years | 20 years |
Lessee Leasing Arrangements, Operating Leases, Termination Notice, years | 35 years |
Lessee Leasing Arrangements, Operating Leases, Renewal Term | 1 year |
Number of Leases Under Termination Notice | lease | 4 |
Number of Leases Under Termination Notice, Expiring 2044-2049 | lease | 2 |
Number of Leases Under Termination Notice, Expiring 2062 | lease | 2 |
INCOME TAXES (Provision for Inc
INCOME TAXES (Provision for Income Taxes from Continuing Operations - Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
U.S. federal statutory tax rate, percentage | 35.00% | 35.00% |
INCOME TAXES (Schedule of Effec
INCOME TAXES (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||
Income tax expense at federal statutory rate | $ (4,997) | $ (6,198) |
U.S. and foreign REIT income & U.S. TRS taxable losses | 4,360 | 7,502 |
Foreign TRS operations | 117 | 1,137 |
U.S. net deferred tax asset valuation allowance | (452) | (1,812) |
Other | (80) | (158) |
Income tax (expense) benefit before discrete items | (1,052) | 471 |
Tax benefit recognized related to changes in the New Zealand JV deferred tax inventory | 1,833 | 0 |
Income tax benefit as reported | $ 781 | $ 471 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||
Income tax expense at federal statutory rate | 35.00% | 35.00% |
U.S. and foreign REIT income & U.S. TRS taxable losses | (30.60%) | (42.40%) |
Foreign TRS operations | (0.80%) | (6.40%) |
U.S. net deferred tax asset valuation allowance | 3.20% | 10.20% |
Other | 0.60% | 0.90% |
Income tax (expense) benefit before discrete items | 7.40% | (2.70%) |
Tax benefit recognized related to changes in the New Zealand JV deferred tax inventory | (12.90%) | 0.00% |
Income tax benefit as reported | (5.50%) | (2.70%) |
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 |
GUARANTEES (Details)
GUARANTEES (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | $ 19,709 |
Carrying Amount of Associated Liability | 15,043 |
Standby letters of credit | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | 16,549 |
Carrying Amount of Associated Liability | 15,000 |
Guarantor obligations collateral for industrial revenue bonds | 15,000 |
Guarantees | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | 2,254 |
Carrying Amount of Associated Liability | 43 |
Surety bonds | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | 906 |
Carrying Amount of Associated Liability | $ 0 |
EARNINGS PER COMMON SHARE (Sche
EARNINGS PER COMMON SHARE (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income amounts attributable to Rayonier Inc. | ||
Net Income | $ 15,058 | $ 18,180 |
Less: Net income attributable to noncontrolling interest | 586 | 433 |
Net income attributable to Rayonier Inc. | $ 14,472 | $ 17,747 |
Shares used for determining basic earnings per common share (in shares) | 122,556,239 | 126,614,334 |
Dilutive effect of: | ||
Stock options (in shares) | 53,526 | 168,680 |
Performance and restricted shares (in shares) | 35,124 | 51,494 |
Assumed conversion of senior exchangeable notes (in shares) | 0 | 892,885 |
Assumed conversion of warrants (in shares) | 0 | 0 |
Shares used for determining diluted earnings per common share (in shares) | 122,644,889 | 127,727,393 |
Basic earnings per common share attributable to Rayonier Inc. (in dollars per share) | $ 0.12 | $ 0.14 |
Diluted earnings per common share attributable to Rayonier Inc. (in dollars per share) | $ 0.12 | $ 0.14 |
EARNINGS PER COMMON SHARE (Sc61
EARNINGS PER COMMON SHARE (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from the computations of diluted earnings per share (in shares) | 1,095,453 | 1,650,845 |
Warrants on Senior Exchangeable Notes due 2015 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Exercise price of warrants (USD per share) | $ 28.11 | |
Stock options, performance and restricted shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from the computations of diluted earnings per share (in shares) | 1,095,453 | 757,960 |
Assumed conversion of exchangeable note hedges | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from the computations of diluted earnings per share (in shares) | 0 | 892,885 |
DERIVATIVE FINANCIAL INSTRUME62
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Narrative) (Details) - USD ($) $ in Thousands | Mar. 03, 2016 | Feb. 29, 2016 | Aug. 31, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Feb. 01, 2016 |
Derivative [Line Items] | |||||||
Gain (loss) on sale of derivatives | $ 9,300 | ||||||
Derivative, Basis Spread on Variable Rate | 1.625% | ||||||
Foreign currency option contracts | |||||||
Derivative [Line Items] | |||||||
Notional Amount | $ 332,000 | $ 159,700 | |||||
Foreign Exchange Option - Contract 2 | |||||||
Derivative [Line Items] | |||||||
Notional Amount | $ 154,600 | ||||||
Foreign Exchange Forward | |||||||
Derivative [Line Items] | |||||||
Notional Amount | $ 159,500 | ||||||
Interest rate swaps | |||||||
Derivative [Line Items] | |||||||
Notional Amount | $ 170,000 | ||||||
Derivative, term of contract | 9 years | ||||||
Derivative, fixed interest rate | 2.20% | ||||||
Forward Interest Rate Swap | |||||||
Derivative [Line Items] | |||||||
Notional Amount | $ 180,000 | ||||||
Derivative, term of contract | 9 years | ||||||
Derivative, fixed interest rate | 2.35% | ||||||
Not Designated as Hedging Instrument | Interest rate swaps | |||||||
Derivative [Line Items] | |||||||
Notional Amount | $ 0 | $ 130,169 | |||||
Minimum | |||||||
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% | ||||||
Percent of forecast sales and purchases hedged for 12 to 18 months | 50.00% | ||||||
Minimum | Foreign Currency Exchange and Option Contracts, Scale 3 | |||||||
Derivative [Line Items] | |||||||
Length of Time, Foreign Currency Cash Flow Hedge | 12 months | ||||||
Maximum | |||||||
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% | ||||||
Maximum | Foreign Currency Exchange and Option Contracts, Scale 3 | |||||||
Derivative [Line Items] | |||||||
Length of Time, Foreign Currency Cash Flow Hedge | 18 months | ||||||
Other operating income, net | Not Designated as Hedging Instrument | Foreign currency option contracts | |||||||
Derivative [Line Items] | |||||||
Gain on derivative | $ 300 | $ 258 | $ 0 | ||||
Other operating income, net | Not Designated as Hedging Instrument | Foreign currency exchange contracts | |||||||
Derivative [Line Items] | |||||||
Gain on derivative | $ 900 | 895 | $ 0 | ||||
Cash Flow Hedging | Designated as Hedging Instrument | |||||||
Derivative [Line Items] | |||||||
AOCI (loss) balance expected to be reclassified in next twelve months, net of tax | (800) | ||||||
Cash Flow Hedging | Designated as Hedging Instrument | Foreign currency option contracts | |||||||
Derivative [Line Items] | |||||||
Notional Amount | 88,700 | $ 107,200 | |||||
Cash Flow Hedging | Designated as Hedging Instrument | Foreign currency exchange contracts | |||||||
Derivative [Line Items] | |||||||
Notional Amount | 23,950 | 21,250 | |||||
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | |||||||
Derivative [Line Items] | |||||||
Notional Amount | $ 350,000 | $ 350,000 |
DERIVATIVE FINANCIAL INSTRUME63
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Income Statement Location) (Details) - USD ($) $ in Thousands | Mar. 03, 2016 | Feb. 29, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Mar. 31, 2015 |
Designated as Hedging Instrument | Other comprehensive (loss) income | Cash Flow Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Designated hedged item, gain (loss) recognized in other comprehensive income | $ (14,800) | ||||
Designated as Hedging Instrument | Foreign currency exchange contracts | Other comprehensive (loss) income | Cash Flow Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Designated hedged item, gain (loss) recognized in other comprehensive income | $ 711 | $ (700) | |||
Designated as Hedging Instrument | Foreign currency exchange contracts | Other comprehensive (loss) income | Net Investment Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Designated hedged item, gain (loss) recognized in other comprehensive income | (4,606) | 591 | |||
Designated as Hedging Instrument | Foreign currency option contracts | Other comprehensive (loss) income | Cash Flow Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Designated hedged item, gain (loss) recognized in other comprehensive income | 833 | (681) | |||
Designated as Hedging Instrument | Interest rate swaps | Other comprehensive (loss) income | Cash Flow Hedging | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Designated hedged item, gain (loss) recognized in other comprehensive income | (14,886) | 0 | |||
Not Designated as Hedging Instrument | Foreign currency exchange contracts | Other operating income, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Designated hedged item, gain (loss) recognized in income | $ 900 | 895 | 0 | ||
Not Designated as Hedging Instrument | Foreign currency option contracts | Other operating income, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Designated hedged item, gain (loss) recognized in income | $ 300 | 258 | 0 | ||
Not Designated as Hedging Instrument | Interest rate swaps | Interest income and miscellaneous (expense), net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Non-designated hedged item, gain (loss) recognized in income | $ (1,219) | $ (1,855) |
DERIVATIVE FINANCIAL INSTRUME64
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Notional Amounts) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Feb. 01, 2016 | Dec. 31, 2015 | Aug. 31, 2015 |
Foreign currency option contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | $ 159,700 | $ 332,000 | ||
Interest rate swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | $ 170,000 | |||
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency exchange contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | $ 23,950 | $ 21,250 | ||
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency option contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 88,700 | 107,200 | ||
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 350,000 | 350,000 | ||
Designated as Hedging Instrument | Net Investment Hedging | Foreign currency option contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 0 | 331,588 | ||
Not Designated as Hedging Instrument | Interest rate swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | $ 0 | $ 130,169 |
DERIVATIVE FINANCIAL INSTRUME65
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Balance Sheet Location) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | $ 1,386 | $ 5,641 |
Fair value, derivative liability | (27,200) | (21,546) |
Prepaid and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 932 | 5,233 |
Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 454 | 408 |
Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (1,977) | (2,866) |
Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (25,223) | (18,680) |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency exchange contracts | Prepaid and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 221 | 43 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency exchange contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 131 | 0 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency exchange contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (1,275) | (1,449) |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency exchange contracts | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | 0 | (219) |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency option contracts | Prepaid and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 711 | 560 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency option contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 323 | 408 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency option contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (702) | (1,393) |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency option contracts | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (141) | (217) |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (25,082) | (10,197) |
Designated as Hedging Instrument | Net Investment Hedging | Foreign currency option contracts | Prepaid and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 0 | 4,630 |
Designated as Hedging Instrument | Net Investment Hedging | Foreign currency option contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | 0 | (24) |
Not Designated as Hedging Instrument | Interest rate swaps | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | $ 0 | $ (8,047) |
FAIR VALUE MEASUREMENTS (Fair V
FAIR VALUE MEASUREMENTS (Fair Values Measured on Recurring Basis) (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 76,204 | $ 51,777 |
Restricted cash | 12,912 | 23,525 |
Current maturities of long-term debt | (12,211) | 0 |
Long-term debt | (857,429) | (830,554) |
Carrying Amount | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | (25,082) | (18,244) |
Carrying Amount | Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency exchange contracts | (923) | (1,625) |
Carrying Amount | Foreign currency option contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency option contracts | 191 | 3,964 |
Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 76,204 | 51,777 |
Restricted cash | 12,912 | 23,525 |
Current maturities of long-term debt | 0 | 0 |
Long-term debt | 0 | 0 |
Fair Value | Level 1 | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 0 | 0 |
Fair Value | Level 1 | Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency exchange contracts | 0 | 0 |
Fair Value | Level 1 | Foreign currency option contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency option contracts | 0 | 0 |
Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Current maturities of long-term debt | (12,211) | 0 |
Long-term debt | (875,329) | (830,203) |
Fair Value | Level 2 | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | (25,082) | (18,244) |
Fair Value | Level 2 | Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency exchange contracts | (923) | (1,625) |
Fair Value | Level 2 | Foreign currency option contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency option contracts | $ 191 | $ 3,964 |
EMPLOYEE BENEFIT PLANS (Narrati
EMPLOYEE BENEFIT PLANS (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2016pension_plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Number of qualified defined benefit plans | 1 |
EMPLOYEE BENEFIT PLANS (Net Per
EMPLOYEE BENEFIT PLANS (Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Pension | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 327 | $ 371 |
Interest cost | 869 | 830 |
Expected return on plan assets | (1,008) | (1,007) |
Amortization of prior service cost | 0 | 3 |
Amortization of losses (gains) | 629 | 933 |
Net periodic benefit cost | 817 | 1,130 |
Postretirement | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 2 | 3 |
Interest cost | 12 | 13 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost | 0 | 0 |
Amortization of losses (gains) | (12) | 3 |
Net periodic benefit cost | $ 2 | $ 19 |
OTHER OPERATING INCOME, NET (De
OTHER OPERATING INCOME, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Other Income and Expenses [Abstract] | ||
Lease income, primarily from hunting leases | $ 4,559 | $ 4,109 |
Other non-timber income | 519 | 1,364 |
Foreign currency loss | (295) | (107) |
Loss on foreign currency exchange and option contracts | (522) | (134) |
Gain on foreign currency derivatives | 1,153 | 0 |
Miscellaneous income, net | 490 | 342 |
Total | $ 5,904 | $ 5,574 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory [Line Items] | ||
Inventory | $ 17,443 | $ 15,351 |
Real Estate Inventory | ||
Inventory [Line Items] | ||
Inventory | 11,678 | 12,252 |
Log inventory | ||
Inventory [Line Items] | ||
Inventory | $ 5,765 | $ 3,099 |
RESTRICTED DEPOSITS (Details)
RESTRICTED DEPOSITS (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Restricted Cash and Investments [Abstract] | ||
Maximum time period proceeds from LKE sale maintained with third party intermediary, days | 180 days | |
Restricted deposits | $ 12.9 | $ 23.5 |
ACCUMULATED OTHER COMPREHENSI72
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Sep. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | $ (33,503) | $ (4,825) | $ (4,825) | |
Other comprehensive income/(loss) before reclassifications | (9,940) | (36,365) | ||
Amounts reclassified from accumulated other comprehensive loss | (3,576) | 7,687 | ||
Net other comprehensive income/(loss) | (13,516) | (28,678) | ||
Recapitalization of New Zealand JV | 3,438 | |||
Ending balance | (43,581) | (33,503) | ||
Foreign currency translation gains/ (losses) | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (2,450) | 25,533 | 25,533 | |
Other comprehensive income/(loss) before reclassifications | 4,396 | (27,983) | ||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | ||
Net other comprehensive income/(loss) | 4,396 | (27,983) | ||
Recapitalization of New Zealand JV | 3,622 | |||
Ending balance | 5,568 | (2,450) | ||
Net investment hedges of New Zealand JV | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | 6,271 | (145) | (145) | |
Other comprehensive income/(loss) before reclassifications | 0 | 6,416 | ||
Amounts reclassified from accumulated other comprehensive loss | (4,606) | 0 | ||
Net other comprehensive income/(loss) | (4,606) | 6,416 | ||
Recapitalization of New Zealand JV | 0 | |||
Ending balance | 1,665 | 6,271 | ||
Cash flow hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (11,592) | (1,548) | (1,548) | |
Other comprehensive income/(loss) before reclassifications | (14,336) | (14,444) | ||
Amounts reclassified from accumulated other comprehensive loss | 413 | 4,400 | ||
Net other comprehensive income/(loss) | (13,923) | (10,044) | ||
Recapitalization of New Zealand JV | (184) | |||
Ending balance | (25,699) | (11,592) | ||
Employee benefit plans | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Beginning balance | (25,732) | (28,665) | (28,665) | |
Other comprehensive income/(loss) before reclassifications | 0 | (354) | ||
Amounts reclassified from accumulated other comprehensive loss | 617 | 3,287 | ||
Net other comprehensive income/(loss) | 617 | 2,933 | ||
Recapitalization of New Zealand JV | 0 | |||
Ending balance | (25,115) | $ (25,732) | ||
Designated as Hedging Instrument | Cash Flow Hedging | Other comprehensive (loss) income | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Designated hedged item, gain (loss) recognized in other comprehensive income | $ (14,800) | |||
Interest rate swaps | Cash flow hedges | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Other comprehensive income/(loss) before reclassifications | $ (10,200) | |||
Interest rate swaps | Designated as Hedging Instrument | Cash Flow Hedging | Other comprehensive (loss) income | ||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||||
Designated hedged item, gain (loss) recognized in other comprehensive income | $ (14,886) | $ 0 |
ACCUMULATED OTHER COMPREHENSI73
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Reclassified AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other operating income, net | $ 5,904 | $ 5,574 | |
Comprehensive (loss) income attributable to noncontrolling interest | 3,749 | 3,791 | |
Income tax benefit | 781 | 471 | |
Net loss from accumulated other comprehensive income | (3,576) | $ 7,687 | |
Reclassification out of Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net loss from accumulated other comprehensive income | 413 | 292 | |
Amount reclassified from accumulated other comprehensive income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net loss from accumulated other comprehensive income | 413 | $ 4,400 | |
Amount reclassified from accumulated other comprehensive income | Reclassification out of Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Comprehensive (loss) income attributable to noncontrolling interest | (314) | (230) | |
Income tax benefit | (161) | (135) | |
Amount reclassified from accumulated other comprehensive income | Foreign currency exchange contracts | Reclassification out of Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other operating income, net | 334 | 364 | |
Amount reclassified from accumulated other comprehensive income | Foreign currency option contracts | Reclassification out of Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other operating income, net | $ 554 | $ 293 |
CONSOLIDATING FINANCIAL STATE74
CONSOLIDATING FINANCIAL STATEMENTS (Narrative) (Details) - Senior Notes due 2022 at a fixed interest rate of 3.75% | Mar. 31, 2012USD ($) |
Debt Instrument [Line Items] | |
Face amount | $ 325,000,000 |
Stated interest rate | 3.75% |
CONSOLIDATING FINANCIAL STATE75
CONSOLIDATING FINANCIAL STATEMENTS (Condensed Consolidating Statements of (Loss) Income and Comprehensive (Loss) Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
SALES | $ 134,843 | $ 140,305 | |
Cost of sales | 107,971 | 107,234 | |
Selling and general expenses | 9,779 | 10,898 | |
Other operating (income) expense, net | (5,904) | (5,574) | |
Costs and Expenses, Total | 111,846 | 112,558 | |
OPERATING INCOME | 22,997 | 27,747 | |
Interest expense | (7,098) | (8,544) | |
Interest and miscellaneous income (expense), net | (1,622) | (1,494) | |
Equity in income (loss) income from subsidiaries | 0 | 0 | |
INCOME BEFORE INCOME TAXES | 14,277 | 17,709 | |
Income tax (expense) benefit | 781 | 471 | |
NET INCOME | 15,058 | 18,180 | $ 43,941 |
Less: Net income attributable to noncontrolling interest | 586 | 433 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 14,472 | 17,747 | |
Foreign currency translation adjustment, net of income tax benefit of $0 and $343 | 2,804 | (14,323) | (32,451) |
New Zealand joint venture cash flow hedges | (13,774) | (946) | (9,961) |
Actuarial change and amortization of pension and postretirement plans, net of income tax | 617 | 781 | $ 2,933 |
Total other comprehensive loss | (10,353) | (14,488) | |
COMPREHENSIVE INCOME | 4,705 | 3,692 | |
Less: Comprehensive loss attributable to noncontrolling interest | (3,749) | (3,791) | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | 8,454 | 7,483 | |
Consolidating Adjustments | |||
Income Statement [Abstract] | |||
SALES | 0 | 0 | |
Cost of sales | 0 | 0 | |
Selling and general expenses | 0 | 0 | |
Other operating (income) expense, net | 0 | 0 | |
Costs and Expenses, Total | 0 | 0 | |
OPERATING INCOME | 0 | 0 | |
Interest expense | 0 | 0 | |
Interest and miscellaneous income (expense), net | 0 | 0 | |
Equity in income (loss) income from subsidiaries | (34,570) | (43,778) | |
INCOME BEFORE INCOME TAXES | (34,570) | (43,778) | |
Income tax (expense) benefit | 0 | 0 | |
NET INCOME | (34,570) | (43,778) | |
Less: Net income attributable to noncontrolling interest | 0 | 0 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | (34,570) | (43,778) | |
Foreign currency translation adjustment, net of income tax benefit of $0 and $343 | (7,288) | 20,860 | |
New Zealand joint venture cash flow hedges | 13,923 | 1,230 | |
Actuarial change and amortization of pension and postretirement plans, net of income tax | (617) | (801) | |
Total other comprehensive loss | 6,018 | 21,289 | |
COMPREHENSIVE INCOME | (28,552) | (22,489) | |
Less: Comprehensive loss attributable to noncontrolling interest | 0 | 0 | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | (28,552) | (22,489) | |
Rayonier Inc. (Parent Issuer) | |||
Income Statement [Abstract] | |||
SALES | 0 | 0 | |
Cost of sales | 0 | 0 | |
Selling and general expenses | 0 | 0 | |
Other operating (income) expense, net | 0 | 0 | |
Costs and Expenses, Total | 0 | 0 | |
OPERATING INCOME | 0 | 0 | |
Interest expense | (3,139) | (3,168) | |
Interest and miscellaneous income (expense), net | 2,038 | 1,936 | |
Equity in income (loss) income from subsidiaries | 15,573 | 18,979 | |
INCOME BEFORE INCOME TAXES | 14,472 | 17,747 | |
Income tax (expense) benefit | 0 | 0 | |
NET INCOME | 14,472 | 17,747 | |
Less: Net income attributable to noncontrolling interest | 0 | 0 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 14,472 | 17,747 | |
Foreign currency translation adjustment, net of income tax benefit of $0 and $343 | 7,288 | (10,430) | |
New Zealand joint venture cash flow hedges | (13,923) | (615) | |
Actuarial change and amortization of pension and postretirement plans, net of income tax | 617 | 781 | |
Total other comprehensive loss | (6,018) | (10,264) | |
COMPREHENSIVE INCOME | 8,454 | 7,483 | |
Less: Comprehensive loss attributable to noncontrolling interest | 0 | 0 | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | 8,454 | 7,483 | |
Subsidiary Guarantors | |||
Income Statement [Abstract] | |||
SALES | 0 | 0 | |
Cost of sales | 0 | 0 | |
Selling and general expenses | 2,938 | 4,949 | |
Other operating (income) expense, net | (1,155) | 0 | |
Costs and Expenses, Total | 1,783 | 4,949 | |
OPERATING INCOME | (1,783) | (4,949) | |
Interest expense | (2,144) | (2,524) | |
Interest and miscellaneous income (expense), net | 681 | 693 | |
Equity in income (loss) income from subsidiaries | 18,997 | 24,799 | |
INCOME BEFORE INCOME TAXES | 15,751 | 18,019 | |
Income tax (expense) benefit | (178) | 960 | |
NET INCOME | 15,573 | 18,979 | |
Less: Net income attributable to noncontrolling interest | 0 | 0 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 15,573 | 18,979 | |
Foreign currency translation adjustment, net of income tax benefit of $0 and $343 | (4,606) | (10,430) | |
New Zealand joint venture cash flow hedges | (14,886) | (615) | |
Actuarial change and amortization of pension and postretirement plans, net of income tax | 617 | 781 | |
Total other comprehensive loss | (18,875) | (10,264) | |
COMPREHENSIVE INCOME | (3,302) | 8,715 | |
Less: Comprehensive loss attributable to noncontrolling interest | 0 | 0 | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | (3,302) | 8,715 | |
Non- guarantors | |||
Income Statement [Abstract] | |||
SALES | 134,843 | 140,305 | |
Cost of sales | 107,971 | 107,234 | |
Selling and general expenses | 6,841 | 5,949 | |
Other operating (income) expense, net | (4,749) | (5,574) | |
Costs and Expenses, Total | 110,063 | 107,609 | |
OPERATING INCOME | 24,780 | 32,696 | |
Interest expense | (1,815) | (2,852) | |
Interest and miscellaneous income (expense), net | (4,341) | (4,123) | |
Equity in income (loss) income from subsidiaries | 0 | 0 | |
INCOME BEFORE INCOME TAXES | 18,624 | 25,721 | |
Income tax (expense) benefit | 959 | (489) | |
NET INCOME | 19,583 | 25,232 | |
Less: Net income attributable to noncontrolling interest | 586 | 433 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 18,997 | 24,799 | |
Foreign currency translation adjustment, net of income tax benefit of $0 and $343 | 7,410 | (14,323) | |
New Zealand joint venture cash flow hedges | 1,112 | (946) | |
Actuarial change and amortization of pension and postretirement plans, net of income tax | 0 | 20 | |
Total other comprehensive loss | 8,522 | (15,249) | |
COMPREHENSIVE INCOME | 28,105 | 9,983 | |
Less: Comprehensive loss attributable to noncontrolling interest | (3,749) | (3,791) | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | $ 31,854 | $ 13,774 |
CONSOLIDATING FINANCIAL STATE76
CONSOLIDATING FINANCIAL STATEMENTS (Condensed Consolidating Balance Sheets) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
CURRENT ASSETS | ||||
Cash and cash equivalents | $ 76,204 | $ 51,777 | $ 139,049 | $ 161,558 |
Accounts receivable, less allowance for doubtful accounts | 27,497 | 20,222 | ||
Inventory | 17,443 | 15,351 | ||
Prepaid expenses | 12,890 | 12,654 | ||
Other current assets | 1,177 | 5,681 | ||
Total current assets | 135,211 | 105,685 | ||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 2,063,691 | 2,066,780 | ||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 66,618 | 65,450 | ||
NET PROPERTY, PLANT AND EQUIPMENT | 6,835 | 6,742 | ||
INVESTMENT IN SUBSIDIARIES | 0 | 0 | ||
INTERCOMPANY NOTES RECEIVABLE | 0 | 0 | ||
OTHER ASSETS | 59,782 | 71,281 | ||
TOTAL ASSETS | 2,332,137 | 2,315,938 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 22,242 | 21,479 | ||
Current maturities of long-term debt | 12,211 | 0 | ||
Accrued taxes | 4,076 | 3,685 | ||
Accrued payroll and benefits | 3,317 | 7,037 | ||
Accrued interest | 7,373 | 6,153 | ||
Other current liabilities | 19,089 | 21,103 | ||
Total current liabilities | 68,308 | 59,457 | ||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 857,429 | 830,554 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 34,313 | 34,137 | ||
OTHER NON-CURRENT LIABILITIES | 36,307 | 30,050 | ||
INTERCOMPANY PAYABLE | 0 | 0 | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,256,444 | 1,288,084 | ||
Noncontrolling interest | 79,336 | 73,656 | ||
TOTAL SHAREHOLDERS’ EQUITY | 1,335,780 | 1,361,740 | 1,575,151 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,332,137 | 2,315,938 | ||
Consolidating Adjustments | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, less allowance for doubtful accounts | 0 | 0 | ||
Inventory | 0 | 0 | ||
Prepaid expenses | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 0 | 0 | ||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 0 | 0 | ||
NET PROPERTY, PLANT AND EQUIPMENT | 0 | 0 | ||
INVESTMENT IN SUBSIDIARIES | (3,652,190) | (3,534,086) | ||
INTERCOMPANY NOTES RECEIVABLE | 0 | 0 | ||
OTHER ASSETS | 0 | 0 | ||
TOTAL ASSETS | (3,652,190) | (3,534,086) | ||
CURRENT LIABILITIES | ||||
Accounts payable | 0 | 0 | ||
Current maturities of long-term debt | 0 | 0 | ||
Accrued taxes | 0 | 0 | ||
Accrued payroll and benefits | 0 | 0 | ||
Accrued interest | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 0 | 0 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 0 | 0 | ||
OTHER NON-CURRENT LIABILITIES | 0 | 0 | ||
INTERCOMPANY PAYABLE | 0 | 0 | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | (3,652,190) | (3,534,086) | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL SHAREHOLDERS’ EQUITY | (3,652,190) | (3,534,086) | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | (3,652,190) | (3,534,086) | ||
Rayonier Inc. (Parent Issuer) | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 8,773 | 2,472 | 77,738 | 102,218 |
Accounts receivable, less allowance for doubtful accounts | 0 | 0 | ||
Inventory | 0 | 0 | ||
Prepaid expenses | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 8,773 | 2,472 | ||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 0 | 0 | ||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 0 | 0 | ||
NET PROPERTY, PLANT AND EQUIPMENT | 0 | 0 | ||
INVESTMENT IN SUBSIDIARIES | 1,286,575 | 1,321,681 | ||
INTERCOMPANY NOTES RECEIVABLE | 34,272 | 34,567 | ||
OTHER ASSETS | 3 | 3 | ||
TOTAL ASSETS | 1,329,623 | 1,358,723 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 11 | 609 | ||
Current maturities of long-term debt | 0 | 0 | ||
Accrued taxes | 0 | 0 | ||
Accrued payroll and benefits | 0 | 0 | ||
Accrued interest | 6,094 | 3,047 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | 6,105 | 3,656 | ||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 322,789 | 322,697 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 0 | 0 | ||
OTHER NON-CURRENT LIABILITIES | 0 | 0 | ||
INTERCOMPANY PAYABLE | (255,715) | (255,714) | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,256,444 | 1,288,084 | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL SHAREHOLDERS’ EQUITY | 1,256,444 | 1,288,084 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 1,329,623 | 1,358,723 | ||
Subsidiary Guarantors | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 27,868 | 13,217 | 5,569 | 8,105 |
Accounts receivable, less allowance for doubtful accounts | 318 | 1,870 | ||
Inventory | 0 | 0 | ||
Prepaid expenses | 463 | 443 | ||
Other current assets | 245 | 4,876 | ||
Total current assets | 28,894 | 20,406 | ||
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 | 339 | 330 | ||
INVESTMENT IN SUBSIDIARIES | 2,365,615 | 2,212,405 | ||
INTERCOMPANY NOTES RECEIVABLE | (606,172) | (610,450) | ||
OTHER ASSETS | 19,007 | 18,718 | ||
TOTAL ASSETS | 1,807,683 | 1,641,409 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 1,164 | 1,463 | ||
Current maturities of long-term debt | 0 | 0 | ||
Accrued taxes | 54 | (10) | ||
Accrued payroll and benefits | 1,575 | 3,594 | ||
Accrued interest | 973 | 666 | ||
Other current liabilities | 439 | 262 | ||
Total current liabilities | 4,205 | 5,975 | ||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 469,008 | 280,978 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 34,997 | 34,822 | ||
OTHER NON-CURRENT LIABILITIES | 31,859 | 16,914 | ||
INTERCOMPANY PAYABLE | (18,961) | (18,961) | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,286,575 | 1,321,681 | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL SHAREHOLDERS’ EQUITY | 1,286,575 | 1,321,681 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 1,807,683 | 1,641,409 | ||
Non- guarantors | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 39,563 | 36,088 | $ 55,742 | $ 51,235 |
Accounts receivable, less allowance for doubtful accounts | 27,179 | 18,352 | ||
Inventory | 17,443 | 15,351 | ||
Prepaid expenses | 12,427 | 12,211 | ||
Other current assets | 932 | 805 | ||
Total current assets | 97,544 | 82,807 | ||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 2,063,691 | 2,066,780 | ||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 66,618 | 65,450 | ||
NET PROPERTY, PLANT AND EQUIPMENT | 6,496 | 6,412 | ||
INVESTMENT IN SUBSIDIARIES | 0 | 0 | ||
INTERCOMPANY NOTES RECEIVABLE | 571,900 | 575,883 | ||
OTHER ASSETS | 40,772 | 52,560 | ||
TOTAL ASSETS | 2,847,021 | 2,849,892 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 21,067 | 19,407 | ||
Current maturities of long-term debt | 12,211 | 0 | ||
Accrued taxes | 4,022 | 3,695 | ||
Accrued payroll and benefits | 1,742 | 3,443 | ||
Accrued interest | 306 | 2,440 | ||
Other current liabilities | 18,650 | 20,841 | ||
Total current liabilities | 57,998 | 49,826 | ||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 65,632 | 226,879 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | (684) | (685) | ||
OTHER NON-CURRENT LIABILITIES | 4,448 | 13,136 | ||
INTERCOMPANY PAYABLE | 274,676 | 274,675 | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 2,365,615 | 2,212,405 | ||
Noncontrolling interest | 79,336 | 73,656 | ||
TOTAL SHAREHOLDERS’ EQUITY | 2,444,951 | 2,286,061 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 2,847,021 | $ 2,849,892 |
CONSOLIDATING FINANCIAL STATE77
CONSOLIDATING FINANCIAL STATEMENTS (Condensed Consolidating Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Cash Flows [Abstract] | ||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | $ 31,035 | $ 53,398 |
INVESTING ACTIVITIES | ||
Capital expenditures | (13,298) | (13,164) |
Real estate development costs | (1,685) | (276) |
Purchase of timberlands | (14,323) | (23,070) |
Change in restricted cash | 10,613 | (7,071) |
Investment in Subsidiaries | 0 | 0 |
Other | (1,590) | (158) |
CASH USED FOR INVESTING ACTIVITIES | (20,283) | (43,739) |
FINANCING ACTIVITIES | ||
Issuance of debt | 285,552 | 12,000 |
Repayment of debt | (240,752) | (11,371) |
Dividends paid | (30,675) | (31,667) |
Proceeds from the issuance of common shares | 18 | 546 |
Repurchase of common shares | (690) | 0 |
Intercompany distributions | 0 | 0 |
Other | (16) | (94) |
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 13,437 | (30,586) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 238 | (1,582) |
CASH AND CASH EQUIVALENTS | ||
Change in cash and cash equivalents | 24,427 | (22,509) |
Balance, beginning of year | 51,777 | 161,558 |
Balance, end of period | 76,204 | 139,049 |
Consolidating Adjustments | ||
Statement of Cash Flows [Abstract] | ||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | 0 | (9,046) |
INVESTING ACTIVITIES | ||
Capital expenditures | 0 | 0 |
Real estate development costs | 0 | 0 |
Purchase of timberlands | 0 | 0 |
Change in restricted cash | 0 | 0 |
Investment in Subsidiaries | (1,136) | 8,807 |
Other | 0 | 0 |
CASH USED FOR INVESTING ACTIVITIES | (1,136) | 8,807 |
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 | |
Intercompany distributions | 1,136 | 239 |
Other | 0 | 0 |
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 1,136 | 239 |
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 |
Rayonier Inc. (Parent Issuer) | ||
Statement of Cash Flows [Abstract] | ||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | 2,332 | 6,735 |
INVESTING ACTIVITIES | ||
Capital expenditures | 0 | 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 | (30,675) | (31,667) |
Proceeds from the issuance of common shares | 18 | 546 |
Repurchase of common shares | (690) | |
Intercompany distributions | 35,332 | 0 |
Other | (16) | (94) |
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 3,969 | (31,215) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 0 | 0 |
CASH AND CASH EQUIVALENTS | ||
Change in cash and cash equivalents | 6,301 | (24,480) |
Balance, beginning of year | 2,472 | 102,218 |
Balance, end of period | 8,773 | 77,738 |
Subsidiary Guarantors | ||
Statement of Cash Flows [Abstract] | ||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | (3,624) | 13,604 |
INVESTING ACTIVITIES | ||
Capital expenditures | 0 | 0 |
Real estate development costs | 0 | 0 |
Purchase of timberlands | 0 | 0 |
Change in restricted cash | 0 | 0 |
Investment in Subsidiaries | 1,136 | (8,807) |
Other | 0 | 0 |
CASH USED FOR INVESTING ACTIVITIES | 1,136 | (8,807) |
FINANCING ACTIVITIES | ||
Issuance of debt | 213,000 | 12,000 |
Repayment of debt | (25,000) | (10,000) |
Dividends paid | 0 | 0 |
Proceeds from the issuance of common shares | 0 | 0 |
Repurchase of common shares | 0 | |
Intercompany distributions | (170,861) | (9,333) |
Other | 0 | 0 |
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | 17,139 | (7,333) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 0 | 0 |
CASH AND CASH EQUIVALENTS | ||
Change in cash and cash equivalents | 14,651 | (2,536) |
Balance, beginning of year | 13,217 | 8,105 |
Balance, end of period | 27,868 | 5,569 |
Non- guarantors | ||
Statement of Cash Flows [Abstract] | ||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | 32,327 | 42,105 |
INVESTING ACTIVITIES | ||
Capital expenditures | (13,298) | (13,164) |
Real estate development costs | (1,685) | (276) |
Purchase of timberlands | (14,323) | (23,070) |
Change in restricted cash | 10,613 | (7,071) |
Investment in Subsidiaries | 0 | 0 |
Other | (1,590) | (158) |
CASH USED FOR INVESTING ACTIVITIES | (20,283) | (43,739) |
FINANCING ACTIVITIES | ||
Issuance of debt | 72,552 | 0 |
Repayment of debt | (215,752) | (1,371) |
Dividends paid | 0 | 0 |
Proceeds from the issuance of common shares | 0 | 0 |
Repurchase of common shares | 0 | |
Intercompany distributions | 134,393 | 9,094 |
Other | 0 | 0 |
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES | (8,807) | 7,723 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 238 | (1,582) |
CASH AND CASH EQUIVALENTS | ||
Change in cash and cash equivalents | 3,475 | 4,507 |
Balance, beginning of year | 36,088 | 51,235 |
Balance, end of period | $ 39,563 | $ 55,742 |