Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 28, 2017 | |
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, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 128,827,667 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
SALES | $ 186,512 | $ 134,843 | |
Costs and Expenses | |||
Cost of sales | 136,413 | 107,971 | |
Selling and general expenses | 9,590 | 9,779 | |
Other operating income, net (Note 14) | (8,752) | (5,904) | |
Costs and Expenses, Total | 137,251 | 111,846 | |
OPERATING INCOME | 49,261 | 22,997 | |
Interest expense | (8,415) | (7,098) | |
Interest income and miscellaneous income (expense), net | 518 | (1,622) | |
INCOME BEFORE INCOME TAXES | 41,364 | 14,277 | |
Income tax (expense) benefit | (6,281) | 781 | |
NET INCOME | 35,083 | 15,058 | $ 217,770 |
Less: Net income attributable to noncontrolling interest | 1,240 | 586 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 33,843 | 14,472 | |
OTHER COMPREHENSIVE INCOME (LOSS) | |||
Foreign currency translation adjustment, net of income tax expense of $0 and $0 | 2,432 | 2,804 | 6,322 |
Cash flow hedges, net of income tax (expense) benefit of ($32) and $432 | 2,553 | (13,774) | 22,822 |
Amortization of pension and postretirement plans, net of income tax expense of $0 and $0 | 116 | 617 | $ 5,533 |
Total other comprehensive income (loss) | 5,101 | (10,353) | |
COMPREHENSIVE INCOME | 40,184 | 4,705 | |
Less: Comprehensive income (loss) attributable to noncontrolling interest | 1,651 | (3,749) | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | $ 38,533 | $ 8,454 | |
EARNINGS PER COMMON SHARE (Note 10) | |||
Basic earnings per share attributable to Rayonier Inc. (in dollars per share) | $ 0.27 | $ 0.12 | |
Diluted earnings per share attributable to Rayonier Inc. (in dollars per share) | 0.27 | 0.12 | |
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, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustment, tax expense | $ 0 | $ 0 |
Cash flow hedges, income tax (expense) benefit | (32) | 432 |
Amortization of pension and postretirement plans, tax expense | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 219,357 | $ 85,909 |
Accounts receivable, less allowance for doubtful accounts of $33 and $33 | 33,434 | 20,664 |
Insurance settlement receivable (Note 8) | 73,000 | 0 |
Inventory (Note 15) | 27,155 | 21,379 |
Prepaid expenses | 14,723 | 11,807 |
Assets held for sale (Note 17) | 9,006 | 23,171 |
Other current assets | 8,247 | 1,874 |
Total current assets | 384,922 | 164,804 |
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 2,280,814 | 2,291,015 |
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (NOTE 5) | 73,713 | 70,374 |
PROPERTY, PLANT AND EQUIPMENT | ||
Land | 2,279 | 2,279 |
Buildings | 8,094 | 7,990 |
Machinery and equipment | 4,690 | 4,658 |
Construction in progress | 11,013 | 8,170 |
Total property, plant and equipment, gross | 26,076 | 23,097 |
Less — accumulated depreciation | (9,227) | (9,063) |
Total property, plant and equipment, net | 16,849 | 14,034 |
RESTRICTED CASH (Note 16) | 111,276 | 71,708 |
OTHER ASSETS | 51,336 | 73,825 |
TOTAL ASSETS | 2,918,910 | 2,685,760 |
CURRENT LIABILITIES | ||
Accounts payable | 30,956 | 22,337 |
Insurance settlement payable (Note 8) | 73,740 | 0 |
Current maturities of long-term debt | 42,926 | 31,676 |
Accrued taxes | 3,348 | 2,657 |
Accrued payroll and benefits | 3,079 | 9,277 |
Accrued interest | 8,321 | 5,340 |
Other current liabilities | 20,572 | 20,679 |
Total current liabilities | 182,942 | 91,966 |
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 1,028,068 | 1,030,205 |
PENSION AND OTHER POSTRETIREMENT BENEFITS (Note 13) | 31,718 | 31,856 |
OTHER NON-CURRENT LIABILITIES | 28,888 | 34,981 |
COMMITMENTS AND CONTINGENCIES (Notes 6 and 8) | ||
SHAREHOLDERS’ EQUITY | ||
Common Shares, 480,000,000 shares authorized, 128,760,051 and 122,904,368 shares issued and outstanding | 865,343 | 709,867 |
Retained earnings | 689,612 | 700,887 |
Accumulated other comprehensive income | 5,545 | 856 |
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,560,500 | 1,411,610 |
Noncontrolling interest | 86,794 | 85,142 |
TOTAL SHAREHOLDERS’ EQUITY | 1,647,294 | 1,496,752 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 2,918,910 | $ 2,685,760 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Current Assets: | ||
Allowance for doubtful accounts | $ 33 | $ 33 |
Shareholders’ Equity: | ||
Common shares, shares authorized | 480,000,000 | 480,000,000 |
Common shares, shares issued | 128,760,051 | 122,904,368 |
Common shares, shares outstanding | 128,760,051 | 122,904,368 |
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, 2015 | 122,770,217 | ||||
Beginning 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 | 217,770 | 211,972 | 5,798 | ||
Dividends | (123,155) | (123,155) | |||
Issuance of shares under incentive stock plans (shares) | 179,743 | ||||
Issuance of shares under incentive stock plans | 1,576 | $ 1,576 | |||
Stock-based compensation | 5,136 | $ 5,136 | |||
Repurchase of common shares (in shares) | (45,592) | ||||
Repurchase of common shares | (868) | $ (178) | (690) | ||
Actuarial change and amortization of pension and postretirement plan liabilities | 5,533 | 5,533 | |||
Foreign currency translation adjustment | 6,322 | 2,780 | 3,542 | ||
Cash flow hedges | 22,822 | 22,608 | 214 | ||
Recapitalization of New Zealand Joint Venture | 0 | (5,398) | 3,438 | 1,960 | |
Recapitalization costs | (124) | $ (96) | (28) | ||
Ending balance (in shares) at Dec. 31, 2016 | 122,904,368 | ||||
Ending balance at Dec. 31, 2016 | 1,496,752 | $ 709,867 | 700,887 | 856 | 85,142 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative-effect adjustment due to adoption of ASU No. 2016-16 | Accounting Standards Update 2016-16 [Member] | (14,365) | ||||
Net income | 35,083 | 33,843 | 1,240 | ||
Dividends | (30,753) | (30,753) | |||
Issuance of shares under incentive stock plans (shares) | 105,981 | ||||
Issuance of shares under incentive stock plans | 2,251 | $ 2,251 | |||
Stock-based compensation | 880 | $ 880 | |||
Repurchase of common shares (in shares) | (298) | ||||
Repurchase of common shares | 0 | ||||
Actuarial change and amortization of pension and postretirement plan liabilities | 116 | 116 | |||
Foreign currency translation adjustment | 2,432 | 2,002 | 430 | ||
Cash flow hedges | 2,553 | 2,571 | (18) | ||
Issuance of shares under equity offering, net of costs (in shares) | 5,750,000 | ||||
Issuance of shares under equity offering, net of costs | 152,345 | $ 152,345 | |||
Ending balance (in shares) at Mar. 31, 2017 | 128,760,051 | ||||
Ending balance at Mar. 31, 2017 | 1,647,294 | $ 865,343 | $ 689,612 | $ 5,545 | $ 86,794 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative-effect adjustment due to adoption of ASU No. 2016-16 | $ (14,365) |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
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, 2017 | Mar. 31, 2016 | ||
OPERATING ACTIVITIES | |||
Net income | $ 35,083 | $ 15,058 | |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation, depletion and amortization | 30,773 | 29,342 | |
Non-cash cost of land and improved development | 4,479 | 4,108 | |
Stock-based incentive compensation expense | 880 | 839 | |
Deferred income taxes | 5,989 | (545) | |
Amortization of losses from pension and postretirement plans | 116 | 617 | |
Gain on sale of large disposition of timberlands | (28,188) | 0 | |
Other | 2,306 | (1,081) | |
Changes in operating assets and liabilities: | |||
Receivables | (11,442) | (6,904) | |
Inventories | (3,481) | (4,619) | |
Accounts payable | 5,886 | 1,369 | |
Income tax receivable/payable | (126) | (98) | |
All other operating activities | (8,332) | (7,051) | |
CASH PROVIDED BY OPERATING ACTIVITIES | 33,943 | 31,035 | |
INVESTING ACTIVITIES | |||
Capital expenditures | (14,362) | (13,298) | |
Real estate development investments | (2,185) | (1,685) | |
Purchase of timberlands | (11,293) | (14,323) | |
Net proceeds from large disposition of timberlands | 42,034 | 0 | |
Rayonier office building under construction | (2,604) | (186) | |
Change in restricted cash | (39,568) | 10,613 | |
Other | (5,617) | (1,404) | |
CASH USED FOR INVESTING ACTIVITIES | (33,595) | (20,283) | |
FINANCING ACTIVITIES | |||
Issuance of debt | 29,719 | 285,552 | |
Repayment of debt | (20,530) | (240,752) | |
Dividends paid | (30,618) | (30,675) | |
Proceeds from the issuance of common shares under incentive stock plan | 2,251 | 18 | |
Proceeds from the issuance of common shares from equity offering, net of costs | 152,345 | 0 | |
Repurchase of common shares made under share repurchase program | 0 | (690) | |
Other | 0 | (16) | |
CASH PROVIDED BY FINANCING ACTIVITIES | 133,167 | 13,437 | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (67) | 238 | |
CASH AND CASH EQUIVALENTS | |||
Change in cash and cash equivalents | 133,448 | 24,427 | |
Balance, beginning of year | 85,909 | 51,777 | |
Balance, end of period | 219,357 | 76,204 | |
Cash paid during the period: | |||
Interest | [1] | 3,695 | 5,808 |
Income taxes | 214 | 119 | |
Non-cash investing activity: | |||
Capital assets purchased on account | $ 5,430 | $ 2,725 | |
[1] | Interest paid is presented net of patronage payments received of $3.0 million and $0.4 million for the three months ended March 31, 2017 and March 31, 2016, respectively. For additional information on patronage payments, see Note 5 — Debt in the 2016 Form 10-K. |
Consolidated Statements of Cas9
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Cash Flows [Abstract] | ||
Patronage refunds received, netted with interest paid | $ 3 | $ 0.4 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 1. BASIS OF PRESENTATION Basis of Presentation The unaudited consolidated financial statements and notes thereto of Rayonier Inc. and its subsidiaries (“Rayonier” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). 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, 2016 , as filed with the SEC (the “2016 Form 10-K”). Recently Adopted Standards In October 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory , stating entities should recognize income tax consequences of intra-entity transfers of assets other than inventory in the period in which they occur. As such, the Company is required to apply the changes on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. ASU No. 2016-16 is effective for annual periods beginning after December 15, 2017 with early adoption permitted at the beginning of an annual period for which financial statements have not been issued. Rayonier early adopted ASU No. 2016-16 in this quarterly report on Form 10-Q. See Note 7 — Income Taxes for additional information. In March 2016, the FASB issued 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 adopted ASU No. 2016-09 during the first quarter ended March 31, 2017. Upon adoption, additional excess tax benefits and tax deficiencies are recorded to “Income tax (expense) benefit” in the Consolidated Statements of Income and Comprehensive Income, forfeitures are accounted for when they occur and cash paid by Rayonier when directly withholding shares for tax withholding purposes are classified as a financing activity within the statement of cash flows. The adoption of this standard did not have a material impact on the consolidated financial statements. New Accounting Standards In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU No. 2016-18 is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Rayonier intends to adopt ASU No. 2016-18 in the Company’s first quarter 2018 Form 10-Q. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which addresses the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. This update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU No. 2016-15 is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. ASU No. 2016-15 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 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. ASU No. 2016-02 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 (Topic 606) , 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 update clarifies the guidance for identifying performance obligations. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients . The update clarifies the guidance for assessing collectibility, presenting sales taxes and other similar taxes collected from customers, noncash consideration, contract modifications at transition, completed contracts at transition and disclosing the accounting change in the period of adoption. In February 2017, the FASB issued ASU No. 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. The update clarifies that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. 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 the Southern Timber, Pacific Northwest Timber, New Zealand Timber and Real Estate segments. Subsequent Events Acquisition of 94,400 acres of coastal Florida, Georgia and South Carolina timberland In April 2017, the Company completed two separate transactions for the purchase of approximately 94,400 acres of timberland in coastal Florida, Georgia and South Carolina. The final aggregate purchase price of these two transactions, along with a 700 acre transaction that closed in March 2017, was approximately $214 million , or $2,250 per acre. These previously-announced acquisitions were made with proceeds from an equity offering completed in March 2017 and like-kind exchange proceeds from real estate and timberland sales. |
JOINT VENTURE INVESTMENT
JOINT VENTURE INVESTMENT | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Joint Venture Investment | JOINT VENTURE INVESTMENT Matariki Forestry Group The Company maintains a controlling financial interest in Matariki Forestry Group (the "New Zealand JV"), a joint venture that owns or leases approximately 0.4 million legal acres of New Zealand timberland. Accordingly, the Company 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 Statements of Income and Comprehensive Income and Consolidated Statements of Shareholders’ Equity. Rayonier New Zealand Limited (“RNZ”), a wholly-owned subsidiary of Rayonier Inc., serves as the manager of the New Zealand JV. |
SEGMENT AND GEOGRAPHICAL INFORM
SEGMENT AND GEOGRAPHICAL INFORMATION | 3 Months Ended |
Mar. 31, 2017 | |
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” or “unallocated interest expense and other.” The following tables summarize the segment information for the three months ended March 31, 2017 and 2016 : Three Months Ended SALES 2017 2016 Southern Timber $32,715 $44,740 Pacific Northwest Timber 24,792 19,309 New Zealand Timber 40,740 36,023 Real Estate (a) 54,289 13,363 Trading 33,976 21,408 Total $186,512 $134,843 (a) The three months ended March 31, 2017 includes $42.0 million from Large Dispositions. Three Months Ended OPERATING INCOME (LOSS) 2017 2016 Southern Timber $13,939 $15,753 Pacific Northwest Timber (878 ) 1,385 New Zealand Timber 10,243 4,744 Real Estate (a) 29,665 4,225 Trading 1,097 350 Corporate and other (4,805 ) (3,460 ) Total Operating Income 49,261 22,997 Unallocated interest expense and other (7,897 ) (8,720 ) Total Income before Income Taxes $41,364 $14,277 (a) The three months ended March 31, 2017 includes $28.2 million from Large Dispositions. Three Months Ended DEPRECIATION, DEPLETION AND AMORTIZATION 2017 2016 Southern Timber $12,452 $16,556 Pacific Northwest Timber 10,210 4,639 New Zealand Timber 5,407 4,860 Real Estate (a) 10,707 3,203 Trading — — Corporate and other 100 84 Total $38,876 $29,342 (a) The three months ended March 31, 2017 includes $8.1 million from Large Dispositions. Three Months Ended NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT 2017 2016 Southern Timber — — Pacific Northwest Timber — — New Zealand Timber — 1,824 Real Estate (a) 10,222 2,284 Trading — — Corporate and other — — Total $10,222 $4,108 (a) The three months ended March 31, 2017 includes $5.7 million from Large Dispositions. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Rayonier’s debt consisted of the following at March 31, 2017 : March 31, 2017 Term Credit Agreement borrowings due 2024 at a variable interest rate of 2.5% at March 31, 2017 (a) $350,000 Senior Notes due 2022 at a fixed interest rate of 3.75% 325,000 Incremental Term Loan Agreement borrowings due 2026 at a variable interest rate of 2.7% at March 31, 2017 (b) 300,000 Mortgage Notes due 2017 at fixed interest rates of 4.35% 31,601 Revolving Credit Facility borrowings due 2020 at an average variable interest rate of 2.2% at March 31, 2017 40,000 New Zealand JV Working Capital Facility due 2017 at an average variable interest rate of 2.6% at March 31, 2017 11,325 New Zealand JV noncontrolling interest shareholder loan at 0% interest rate 16,486 Total debt 1,074,412 Less: Current maturities of long-term debt (42,926 ) Less: Deferred financing costs (3,418 ) Long-term debt, net of deferred financing costs $1,028,068 (a) As of March 31, 2017, the periodic interest rate on the term loan facility was LIBOR plus 1.625% . The Company estimates the effective fixed interest rate on the term loan facility to be approximately 3.3% after consideration of interest rate swaps and estimated patronage refunds. (b) As of March 31, 2017, the periodic interest rate on the incremental term loan was LIBOR plus 1.900% . The Company estimates the effective fixed interest rate on the incremental term loan facility to be approximately 2.8% after consideration of interest rate swaps and estimated patronage refunds. Principal payments due during the next five years and thereafter are as follows: 2017 (a) 42,825 2018 — 2019 — 2020 40,000 2021 — Thereafter 991,486 Total Debt $1,074,311 (a) The mortgage notes due in 2017 were recorded at a premium of $0.1 million as of March 31, 2017 . Upon maturity the liability will be $31.5 million . 2017 Debt Activity During the three months ended March 31, 2017, the Company made additional borrowings of $15.0 million on the Revolving Credit Facility. Proceeds from the additional borrowings were used to repay the $15.0 million solid waste bonds that were due in 2020. As of March 31, 2017, the Company had available borrowings of $154.6 million under the Revolving Credit Facility, net of $5.4 million to secure its outstanding letters of credit. In addition, the New Zealand JV made $11.3 million of borrowings, net of repayments and changes in exchange rates, on the working capital facility (the “New Zealand JV Working Capital Facility”). As of March 31, 2017, draws totaling NZ$23.8 million remain available on the working capital facilities. The New Zealand JV also paid $2.5 million of its shareholder loan held with the non-controlling interest party during the three months ended March 31, 2017. Changes in exchange rates 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 (the “Term Credit Agreement”), $300 million incremental term loan agreement (“the Incremental Term Loan Agreement”) and $200 million revolving credit facility (“the Revolving Credit Facility”), customary covenants must be met, the most significant of which include interest coverage and leverage ratios. In addition to these financial covenants listed above, the Mortgage Notes, Senior Notes, Term Credit Agreement, Incremental Term Loan Agreement and Revolving Credit Facility include customary covenants that limit the incurrence of debt and the disposition of assets, among others. At March 31, 2017 , the Company was in compliance with all applicable covenants. |
HIGHER AND BETTER USE TIMBERLAN
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS | 3 Months Ended |
Mar. 31, 2017 | |
Real Estate [Abstract] | |
Higher and Better Use Timberlands and Real Estate Development Investments | HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS Rayonier continuously assesses potential alternative uses of its timberlands, as some properties may become more valuable for development, residential, recreation or other purposes. The Company periodically transfers, via a sale or contribution from the real estate investment trust (“REIT”) entities to taxable REIT subsidiaries (“TRS”), higher and better use (“HBU”) timberlands to enable land-use entitlement, development or marketing activities. The Company also acquires HBU properties in connection with timberland acquisitions. These properties are managed as timberlands until sold or developed. While the majority of HBU sales involve rural and recreational land, the Company also selectively pursues various land-use entitlements on certain properties for residential, commercial and industrial development in order to enhance the long-term value of such properties. For selected development properties, Rayonier also invests in targeted infrastructure improvements, such as roadways and utilities, to accelerate the marketability and improve the value of such properties. An analysis of higher and better use timberlands and real estate development costs from December 31, 2016 to March 31, 2017 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, 2016 $59,956 $10,418 $70,374 Plus: Current portion (a) 5,096 11,963 17,059 Total Balance at December 31, 2016 65,052 22,381 87,433 Non-cash cost of land and improved development (438 ) (8 ) (446 ) Timber depletion from harvesting activities and basis of timber sold in real estate sales (359 ) — (359 ) Capitalized real estate development investments (b) — 2,185 2,185 Capital expenditures (silviculture) 88 — 88 Intersegment transfers 4,144 — 4,144 Total Balance at March 31, 2017 68,487 24,558 93,045 Less: Current portion (a) (5,678 ) (13,654 ) (19,332 ) Non-current portion at March 31, 2017 $62,809 $10,904 $73,713 (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. (b) Capitalized real estate development investments includes $0.1 million of capitalized interest. |
COMMITMENTS
COMMITMENTS | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017, the future minimum payments under non-cancellable operating leases, timberland leases and other commitments were as follows: Operating Leases Timberland Leases (a) Commitments (b) Total Remaining 2017 $1,300 $7,209 $8,561 $17,070 2018 1,022 9,163 7,181 17,366 2019 813 8,688 7,174 16,675 2020 639 8,284 7,174 16,097 2021 554 8,342 7,174 16,070 Thereafter (c) 1,187 152,075 22,223 175,485 $5,515 $193,761 $59,487 $258,763 (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) Commitments include payments expected to be made on derivative financial instruments (foreign exchange contracts and interest rate swaps) and construction of the Company’s office building. (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, 2017 , the New Zealand JV has four CFL’s under termination notice, two that are currently being relinquished as harvest activities are concluding, one each in 2034 and 2044, 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, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The operations conducted by the Company’s 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 TRS. The primary businesses performed in Rayonier’s TRS include log trading and certain real estate activities, such as the sale and entitlement of development HBU properties. For the three months ended March 31, 2017, the Company recorded income tax expense of $6.3 million . For the three months ended March 31, 2016, income tax benefit was $0.8 million . 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 Company’s annualized effective tax rate (“AETR”) for the three months ended March 31, 2017 and March 31, 2016 was 15.6% and (5.5)% , respectively. The increase in income tax expense, and the corresponding AETR for the three months ended March 31, 2017, is principally related to the New Zealand JV. In accordance with GAAP, the Company recognizes the impact of a tax position if a position is “more-likely-than-not” to prevail. For the three months ended March 31, 2017, there were no material changes in uncertain tax positions. Prepaid Taxes In the first quarter 2017, the Company early adopted ASU No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory. ASU No. 2016-16 requires income tax consequences of intra-entity transfers of assets other than inventory be recognized in the period in which they occur. See Note 1 — Basis of Presentation . As a result, a cumulative-effect adjustment to retained earnings was recorded for the long-term prepaid federal income tax of $14.4 million related to recognized built-in gains on 2006, 2008 and 2010 intercompany sales of timberlands between the REIT and the TRS. Taxes for the transactions were paid at the time of sale, but the gain and income tax expense were deferred. See the Consolidated Statement of Shareholders’ Equity for the cumulative-effect adjustment to retained earnings due to the adoption of this standard. |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2017 | |
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. The court denied those motions on May 20, 2016. At December 31, 2016, the case continued to be in the discovery phase and the Company could not determine whether there was a reasonable likelihood a material loss had been incurred nor could the range of any such loss be estimated. On March 13, 2017, the Company reached an agreement in principle to settle the case and all parties executed a term sheet memorializing such agreement. The parties executed and filed with the Court the Stipulation and Agreement of Settlement on April 12, 2017 (the “Settlement Agreement”), which the Settlement Agreement included the material terms contained in the term sheet executed on March 13. Pursuant to the terms of the Settlement Agreement, which is subject to Court approval and requests for exclusion by members of the settlement class, the Company agreed to cause certain of its directors’ and officers’ liability insurance carriers to fund a settlement payment to the class of $73 million . In connection with the settlement, the Company agreed to reimburse one of its insurance carriers approximately $740,000 for certain disputed pre-litigation expenses, which reimbursement is expected to be made in the first half of 2017. The amounts agreed to on March 13, 2017, including the realized amount to be funded by the insurance carriers, were reflected in the Company’s Consolidated Financial Statements as of March 31, 2017. 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. 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, 2017 | |
Guarantees [Abstract] | |
Guarantees | GUARANTEES The Company provides financial guarantees as required by creditors, insurance programs, and various governmental agencies. As of March 31, 2017 , the following financial guarantees were outstanding: Financial Commitments Maximum Potential Payment Carrying Amount of Associated Liability Standby letters of credit (a) $5,366 — Guarantees (b) 2,254 43 Surety bonds (c) 683 — Total financial commitments $8,303 $43 (a) Approximately $3.8 million of the standby letters of credit serve as credit support for infrastructure at the Company’s Wildlight development project. The remaining letters of credit support various insurance related agreements, primarily workers’ compensation. These letters of credit will expire at various dates during 2017 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, 2017 , 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. Rayonier has also obtained performance bonds to secure the development activity at the Company’s Wildlight development project. These surety bonds expire at various dates during 2017 and 2018 and are expected to be renewed as required. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 2016 Net Income $35,083 $15,058 Less: Net income attributable to noncontrolling interest 1,240 586 Net income attributable to Rayonier Inc. $33,843 $14,472 Shares used for determining basic earnings per common share 123,587,901 122,556,239 Dilutive effect of: Stock options 106,690 53,526 Performance and restricted shares 228,275 35,124 Shares used for determining diluted earnings per common share 123,922,866 122,644,889 Basic earnings per common share attributable to Rayonier Inc.: $0.27 $0.12 Diluted earnings per common share attributable to Rayonier Inc.: $0.27 $0.12 Three Months Ended 2017 2016 Anti-dilutive shares excluded from the computations of diluted earnings per share: Stock options, performance and restricted shares 592,653 1,095,453 Total 592,653 1,095,453 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES The Company is exposed to market risk related to potential fluctuations in foreign currency exchange rates and interest rates. The Company uses derivative financial instruments to mitigate the financial impact of exposure to these risks. Accounting for derivative financial instruments is governed by ASC Topic 815, Derivatives and Hedging , (“ASC 815”). In accordance with ASC 815, the Company records its derivative instruments at fair value as either assets or liabilities in the Consolidated Balance Sheets. Changes in the instruments’ fair value are accounted for based on their intended use. Gains and losses on derivatives that are designated and qualify for cash flow hedge accounting are recorded as a component of accumulated other comprehensive 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 35% to 90% of its estimated foreign currency exposure with respect to the following three months forecasted sales and purchases, 25% to 75% of forecasted sales and purchases for the forward three to 12 months and up to 50% of the forward 12 to 18 months. Foreign currency exposure from the New Zealand JV’s trading operations is typically hedged based on the following three months forecasted sales and purchases. As of March 31, 2017 , foreign currency exchange contracts and foreign currency option contracts had maturity dates through February 2019 and August 2018, 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 March 2017, the Company purchased foreign exchange forward contracts (notional amount of $11.3 million ) to mitigate the risk of fluctuations in foreign exchange rates when making shareholder loan payments which are denominated in U.S. dollars. For additional information on the shareholder loan see Note 4 — Debt . The New Zealand JV typically hedges 75% to 100% of its estimated foreign currency exposure with respect to the following three months forecasted distributions, up to 75% of forecasted distributions for the forward three to six months and up to 50% of the forward six to 12 months. As of March 31, 2017, the change in fair value of the foreign exchange forward contracts of $0.1 million was recorded in “Interest income and miscellaneous (income) expense, net” as it did not qualify for hedge accounting treatment. Interest Rate Swaps The Company is exposed to cash flow interest rate risk on its variable-rate Term Credit Agreement and Incremental Term Loan Agreement (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 swap agreement fixes the variable portion of the interest rate on the Term Credit Agreement borrowings due 2024 from LIBOR to an average rate of 2.20% . Together with the bank margin of 1.63% , this results in a rate of 3.83% before estimated patronage payments. 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 swap agreement fixes the variable portion of the interest rate on the Term Credit Agreement borrowings due 2024 from LIBOR to an average rate of 2.35% . Together with the bank margin of 1.63% , this results in a rate of 3.97% before estimated patronage payments. This derivative instrument has been designated as an interest rate cash flow hedge and qualifies for hedge accounting. In April 2016, the Company entered into two 10 -year interest rate swap agreements, each for a notional amount of $100 million . These swap agreements fix the variable portion of the interest rate on the Incremental Term Loan borrowings due 2026 to an average rate of 1.60% . Together with the bank margin of 1.90% , this results in a rate of 3.50% before estimated patronage payments. These derivative instruments have been designated as interest rate cash flow hedges and qualify for hedge accounting. In July 2016, the Company entered into an interest rate swap agreement for a notional amount of $100 million through May 2026. This swap agreement fixes the variable portion of the interest rate on the Incremental Term Loan borrowings due 2026 from LIBOR to an average rate of 1.26% . Together with the bank margin of 1.90% , this results in a rate of 3.16% before estimated patronage payments. 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, 2017 and 2016 . Three Months Ended Income Statement Location 2017 2016 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other comprehensive income (loss) ($71 ) $711 Foreign currency option contracts Other comprehensive income (loss) (41 ) 833 Interest rate swaps Other comprehensive income (loss) 2,633 (14,886 ) Derivatives designated as a net investment hedge: Foreign currency exchange contract Other comprehensive income (loss) — (4,606 ) Derivatives not designated as hedging instruments: Foreign currency exchange contracts Other operating income, net — 895 Interest income and miscellaneous income (expense), net 125 — Foreign currency option contracts Other operating income, net — 258 Interest rate swaps Interest income and miscellaneous income (expense), net — (1,219 ) During the next 12 months, the amount of the March 31, 2017 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 gain of approximately $0.6 million . The following table contains the notional amounts of the derivative financial instruments recorded in the Consolidated Balance Sheets: Notional Amount March 31, 2017 December 31, 2016 Derivatives designated as cash flow hedges: Foreign currency exchange contracts $61,200 $44,800 Foreign currency option contracts 81,000 91,000 Interest rate swaps 650,000 650,000 Derivative not designated as a hedging instrument: Foreign currency exchange contracts 11,250 — 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, 2017 December 31, 2016 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other current assets $730 $692 Other assets 102 33 Other current liabilities (223 ) (261 ) Other non-current liabilities (7 ) — Foreign currency option contracts Other current assets 718 1,064 Other assets 167 327 Other current liabilities (335 ) (574 ) Other non-current liabilities (200 ) (426 ) Interest rate swaps Other assets 18,106 17,204 Other non-current liabilities (4,248 ) (5,979 ) Derivative not designated as a hedging instrument: Foreign currency exchange contracts Other current assets 121 — Total derivative contracts: Other current assets $1,569 $1,756 Other assets 18,375 17,564 Total derivative assets $19,944 $19,320 Other current liabilities (558 ) (835 ) Other non-current liabilities (4,455 ) (6,405 ) Total derivative liabilities ($5,013 ) ($7,240 ) (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, 2017 | |
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. (a) The following table presents the carrying amount and estimated fair values of financial instruments held by the Company at March 31, 2017 and December 31, 2016 , using market information and what the Company believes to be appropriate valuation methodologies under GAAP: March 31, 2017 December 31, 2016 Asset (Liability) (a) Carrying Amount Fair Value Carrying Amount Fair Value Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $219,357 $219,357 — $85,909 $85,909 — Restricted cash (b) 111,276 111,276 — 71,708 71,708 — Current maturities of long-term debt (42,926 ) — (43,250 ) (31,676 ) — (31,984 ) Long-term debt (c) (1,028,068 ) — (1,031,648 ) (1,030,205 ) — (1,030,708 ) Interest rate swaps (d) 13,858 — 13,858 11,225 — 11,225 Foreign currency exchange contracts (d) 723 — 723 464 — 464 Foreign currency option contracts (d) 350 — 350 391 — 391 (a) The Company did not have Level 3 assets or liabilities at March 31, 2017 . (b) Restricted cash represent the proceeds from like-kind exchange sales deposited with a third-party intermediary and cash held in escrow for a real estate sale. See Note 16 — Restricted Cash for additional information. (c) The carrying amount of long-term debt is presented net of capitalized debt costs on non-revolving debt. (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, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS The Company has one qualified non-contributory defined benefit pension plan covering a portion of its employees and an unfunded plan that provides benefits in excess of amounts allowable under current tax law in the qualified plan. Both plans are closed to new participants. Effective December 31, 2016, the Company froze benefits for all employees participating in the pension plan. In lieu of the pension plan, the Company provides those employees with an enhanced 401(k) plan match. Employee benefit plan liabilities are calculated using actuarial estimates and management assumptions. These estimates are based on historical information, along with certain assumptions about future events. Changes in assumptions, as well as changes in actual experience, could cause the estimates to change. 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 2017 2016 2017 2016 Components of Net Periodic Benefit Cost Service cost — $327 $13 $2 Interest cost 815 869 2 12 Expected return on plan assets (a) (945 ) (1,008 ) — — Amortization of losses (gains) 116 629 — (12 ) Net periodic benefit (gain) cost ($14 ) $817 $15 $2 (a) The weighted-average expected long-term rate of return on plan assets used in computing 2017 net periodic benefit cost for pension benefits is 7.2 percent. |
OTHER OPERATING INCOME, NET
OTHER OPERATING INCOME, NET | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 2016 Lease and license income, primarily from hunting $4,110 $4,559 Other non-timber income 2,798 519 Foreign currency income (loss) 313 (295 ) Gain (loss) on foreign currency exchange and option contracts 652 (522 ) Gain on foreign currency derivatives (a) — 1,153 Miscellaneous income, net 879 490 Total $8,752 $5,904 (a) The Company used foreign exchange derivatives to mitigate the risk of fluctuations in foreign exchange rates while awaiting the capital contribution to the New Zealand JV. |
INVENTORY
INVENTORY | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory | INVENTORY As of March 31, 2017 and December 31, 2016 , Rayonier’s inventory was solely comprised of finished goods, as follows: March 31, 2017 December 31, 2016 Finished goods inventory Real estate inventory (a) $19,332 $17,059 Log inventory 7,823 4,320 Total inventory $27,155 $21,379 (a) Represents cost of HBU real estate (including capitalized development investments) expected to be sold within 12 months. See Note 5 — Higher And Better Use Timberlands And Real Estate Development Investments for additional information. |
RESTRICTED CASH
RESTRICTED CASH | 3 Months Ended |
Mar. 31, 2017 | |
Restricted Cash and Investments [Abstract] | |
Restricted Cash | RESTRICTED CASH In order to qualify for like-kind exchange (“LKE”) treatment, the proceeds from real estate sales must be deposited with a third-party intermediary. These proceeds are accounted for as restricted cash until a suitable replacement property is acquired. In the event LKE purchases are not completed, the proceeds are returned to the Company after 180 days and reclassified as available cash. As of March 31, 2017 and December 31, 2016 , the Company had $111.3 million and $71.7 million , respectively, of proceeds from real estate sales classified as restricted cash which were deposited with an LKE intermediary as well as cash held in escrow for a real estate sale. |
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE | 3 Months Ended |
Mar. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Assets Held For Sale | ASSETS HELD FOR SALE As of March 31, 2017, assets held for sale were composed of properties expected to be sold within the next 12 months and meet the other relevant held-for-sale criteria in accordance with ASC 360-10-45-9. As the basis in these properties of $9.0 million was less than the fair value, including costs to sell, no impairment was recognized. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 and the year ended December 31, 2016 . 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, 2015 ($2,450 ) $6,271 ($11,592 ) ($25,732 ) ($33,503 ) Other comprehensive income/(loss) before reclassifications 7,387 — 22,024 3,020 (b) 32,431 Amounts reclassified from accumulated other comprehensive loss — (4,606 ) 583 2,513 (c) (1,510 ) Net other comprehensive income/(loss) 7,387 (4,606 ) 22,607 5,533 30,921 Recapitalization of New Zealand JV 3,622 — (184 ) — 3,438 Balance as of December 31, 2016 $8,559 $1,665 $10,831 ($20,199 ) $856 Other comprehensive income before reclassifications 2,002 — 2,975 (a) — 4,977 Amounts reclassified from accumulated other comprehensive income — — (404 ) 116 (c) (288 ) Net other comprehensive income 2,002 — 2,571 116 4,689 Balance as of March 31, 2017 $10,561 $1,665 $13,402 ($20,083 ) $5,545 (a) Includes $2.6 million of other comprehensive gain related to interest rate swaps. See Note 11 — Derivative Financial Instruments and Hedging Activities for additional information. (b) This accumulated other comprehensive income component is comprised of $2.4 million from the annual computation of pension liabilities and a $5.4 million curtailment gain. See Note 15 — Employee Benefit Plans of the 2016 Form 10-K for additional information. (c) This component of other comprehensive income is included in the computation of net periodic pension cost. See Note 13 — Employee Benefit Plans for additional information. The following table presents details of the amounts reclassified in their entirety from AOCI to net income for the three months ended March 31, 2017 and March 31, 2016 : Details about accumulated other comprehensive income components Amount reclassified from accumulated other comprehensive income Affected line item in the income statement March 31, 2017 March 31, 2016 Realized (gain) loss on foreign currency exchange contracts ($446 ) $334 Other operating income, net Realized (gain) loss on foreign currency option contracts (282 ) 554 Other operating income, net Noncontrolling interest 168 (314 ) Comprehensive income (loss) attributable to noncontrolling interest Income tax (expense) benefit on loss from foreign currency contracts 156 (161 ) Income tax (expense) benefit Net (gain) loss from accumulated other comprehensive income ($404 ) $413 |
CONSOLIDATING FINANCIAL STATEME
CONSOLIDATING FINANCIAL STATEMENTS | 3 Months Ended |
Mar. 31, 2017 | |
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 INCOME AND COMPREHENSIVE INCOME For the Three Months Ended March 31, 2017 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated SALES — — $186,512 — $186,512 Costs and Expenses Cost of sales — — 136,413 — 136,413 Selling and general expenses — 3,536 6,054 — 9,590 Other operating expense (income), net — 111 (8,863 ) — (8,752 ) — 3,647 133,604 — 137,251 OPERATING (LOSS) INCOME — (3,647 ) 52,908 — 49,261 Interest expense (3,139 ) (4,858 ) (418 ) — (8,415 ) Interest and miscellaneous income (expense), net 2,202 689 (2,373 ) — 518 Equity in income from subsidiaries 34,780 42,744 — (77,524 ) — INCOME BEFORE INCOME TAXES 33,843 34,928 50,117 (77,524 ) 41,364 Income tax expense — (148 ) (6,133 ) — (6,281 ) NET INCOME 33,843 34,780 43,984 (77,524 ) 35,083 Less: Net income attributable to noncontrolling interest — — 1,240 — 1,240 NET INCOME ATTRIBUTABLE TO RAYONIER INC. 33,843 34,780 42,744 (77,524 ) 33,843 OTHER COMPREHENSIVE INCOME Foreign currency translation adjustment, net of income tax 2,002 — 2,432 (2,002 ) 2,432 Cash flow hedges, net of income tax 2,572 2,633 (80 ) (2,572 ) 2,553 Amortization of pension and postretirement plans, net of income tax 116 116 — (116 ) 116 Total other comprehensive income 4,690 2,749 2,352 (4,690 ) 5,101 COMPREHENSIVE INCOME 38,533 37,529 46,336 (82,214 ) 40,184 Less: Comprehensive income attributable to noncontrolling interest — — 1,651 — 1,651 COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. $38,533 $37,529 $44,685 ($82,214 ) $38,533 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) 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 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 ) Amortization of pension and postretirement plans, net of income tax 617 617 — (617 ) 617 Total other comprehensive (loss) income (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 BALANCE SHEETS As of March 31, 2017 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $157,916 $18,524 $42,917 — $219,357 Accounts receivable, less allowance for doubtful accounts — 946 32,488 — 33,434 Insurance settlement receivable 73,000 — — — 73,000 Inventory — — 27,155 — 27,155 Prepaid expenses — 1,839 12,884 — 14,723 Assets held for sale — — 9,006 — 9,006 Other current assets — 20 8,227 — 8,247 Total current assets 230,916 21,329 132,677 — 384,922 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — 2,280,814 — 2,280,814 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS — — 73,713 — 73,713 NET PROPERTY, PLANT AND EQUIPMENT — 141 16,708 — 16,849 RESTRICTED CASH — — 111,276 — 111,276 INVESTMENT IN SUBSIDIARIES 1,434,995 2,715,947 — (4,150,942 ) — INTERCOMPANY RECEIVABLE 29,866 (615,867 ) 586,001 — — OTHER ASSETS 2 10,780 40,554 — 51,336 TOTAL ASSETS $1,695,779 $2,132,330 $3,241,743 ($4,150,942 ) $2,918,910 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable — $4,990 $25,966 — $30,956 Insurance settlement payable 73,740 — — — 73,740 Current maturities of long-term debt 31,601 — 11,325 — 42,926 Accrued taxes — 28 3,320 — 3,348 Accrued payroll and benefits — 1,423 1,656 — 3,079 Accrued interest 6,094 1,973 254 — 8,321 Other current liabilities — 473 20,099 — 20,572 Total current liabilities 111,435 8,887 62,620 — 182,942 LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS 291,557 663,425 73,086 — 1,028,068 PENSION AND OTHER POSTRETIREMENT BENEFITS — 32,402 (684 ) — 31,718 OTHER NON-CURRENT LIABILITIES — 11,584 17,304 — 28,888 INTERCOMPANY PAYABLE (267,713 ) (18,963 ) 286,676 — — TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,560,500 1,434,995 2,715,947 (4,150,942 ) 1,560,500 Noncontrolling interest — — 86,794 — 86,794 TOTAL SHAREHOLDERS’ EQUITY 1,560,500 1,434,995 2,802,741 (4,150,942 ) 1,647,294 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,695,779 $2,132,330 $3,241,743 ($4,150,942 ) $2,918,910 CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2016 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $21,453 $9,461 $54,995 — $85,909 Accounts receivable, less allowance for doubtful accounts — 2,991 17,673 — 20,664 Inventory — — 21,379 — 21,379 Prepaid expenses — 427 11,380 — 11,807 Assets held for sale — — 23,171 — 23,171 Other current assets — 236 1,638 — 1,874 Total current assets 21,453 13,115 130,236 — 164,804 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — 2,291,015 — 2,291,015 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS — — 70,374 — 70,374 NET PROPERTY, PLANT AND EQUIPMENT — 177 13,857 — 14,034 RETRICTED CASH — — 71,708 — 71,708 INVESTMENT IN SUBSIDIARIES 1,422,081 2,671,428 — (4,093,509 ) — INTERCOMPANY RECEIVABLE 26,472 (611,571 ) 585,099 — — OTHER ASSETS 2 46,846 26,977 — 73,825 TOTAL ASSETS $1,470,008 $2,119,995 $3,189,266 ($4,093,509 ) $2,685,760 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable — $1,194 $21,143 — $22,337 Current maturities of long-term debt 31,676 — — — 31,676 Accrued taxes — (111 ) 2,768 — 2,657 Accrued payroll and benefits — 5,013 4,264 — 9,277 Accrued interest 3,047 2,040 253 — 5,340 Other current liabilities — 165 20,514 — 20,679 Total current liabilities 34,723 8,301 48,942 — 91,966 LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS 291,390 663,343 75,472 — 1,030,205 PENSION AND OTHER POSTRETIREMENT BENEFITS — 32,541 (685 ) — 31,856 OTHER NON-CURRENT LIABILITIES — 12,690 22,291 — 34,981 INTERCOMPANY PAYABLE (267,715 ) (18,961 ) 286,676 — — TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,411,610 1,422,081 2,671,428 (4,093,509 ) 1,411,610 Noncontrolling interest — — 85,142 — 85,142 TOTAL SHAREHOLDERS’ EQUITY 1,411,610 1,422,081 2,756,570 (4,093,509 ) 1,496,752 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,470,008 $2,119,995 $3,189,266 ($4,093,509 ) $2,685,760 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2017 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES ($1,192 ) $36,931 ($1,796 ) — $33,943 INVESTING ACTIVITIES Capital expenditures — — (14,362 ) — (14,362 ) Real estate development investments — — (2,185 ) — (2,185 ) Purchase of timberlands — — (11,293 ) — (11,293 ) Net proceeds from large disposition — — 42,034 — 42,034 Rayonier office building under construction — — (2,604 ) — (2,604 ) Change in restricted cash — — (39,568 ) — (39,568 ) Investment in subsidiaries — 2,636 — (2,636 ) — Other — — (5,617 ) — (5,617 ) CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES — 2,636 (33,595 ) (2,636 ) (33,595 ) FINANCING ACTIVITIES Issuance of debt — 15,000 14,719 — 29,719 Repayment of debt — (15,000 ) (5,530 ) — (20,530 ) Dividends paid (30,618 ) — — — (30,618 ) Proceeds from the issuance of common shares 2,251 — — — 2,251 Issuance of shares under equity offering 152,345 — — — 152,345 Intercompany distributions 13,677 (30,504 ) 14,191 2,636 — CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES 137,655 (30,504 ) 23,380 2,636 133,167 EFFECT OF EXCHANGE RATE CHANGES ON CASH — — (67 ) — (67 ) CASH AND CASH EQUIVALENTS Change in cash and cash equivalents 136,463 9,063 (12,078 ) — 133,448 Balance, beginning of year 21,453 9,461 54,995 — 85,909 Balance, end of period $157,916 $18,524 $42,917 — $219,357 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 ) Rayonier office building under construction — — (186 ) — (186 ) Change in restricted cash — — 10,613 — 10,613 Investment in subsidiaries — 1,136 — (1,136 ) — Other — — (1,404 ) — (1,404 ) 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 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited consolidated financial statements and notes thereto of Rayonier Inc. and its subsidiaries (“Rayonier” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). 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, 2016 , as filed with the SEC (the “2016 Form 10-K”). |
Recently Adopted Standards | Recently Adopted Standards In October 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-16, Intra-Entity Transfers of Assets Other Than Inventory , stating entities should recognize income tax consequences of intra-entity transfers of assets other than inventory in the period in which they occur. As such, the Company is required to apply the changes on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. ASU No. 2016-16 is effective for annual periods beginning after December 15, 2017 with early adoption permitted at the beginning of an annual period for which financial statements have not been issued. Rayonier early adopted ASU No. 2016-16 in this quarterly report on Form 10-Q. See Note 7 — Income Taxes for additional information. In March 2016, the FASB issued 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 adopted ASU No. 2016-09 during the first quarter ended March 31, 2017. Upon adoption, additional excess tax benefits and tax deficiencies are recorded to “Income tax (expense) benefit” in the Consolidated Statements of Income and Comprehensive Income, forfeitures are accounted for when they occur and cash paid by Rayonier when directly withholding shares for tax withholding purposes are classified as a financing activity within the statement of cash flows. The adoption of this standard did not have a material impact on the consolidated financial statements. |
New Accounting Standards | New Accounting Standards In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash , which requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. ASU No. 2016-18 is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Rayonier intends to adopt ASU No. 2016-18 in the Company’s first quarter 2018 Form 10-Q. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments , which addresses the diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. This update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU No. 2016-15 is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. ASU No. 2016-15 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 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. ASU No. 2016-02 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 (Topic 606) , 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 update clarifies the guidance for identifying performance obligations. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients . The update clarifies the guidance for assessing collectibility, presenting sales taxes and other similar taxes collected from customers, noncash consideration, contract modifications at transition, completed contracts at transition and disclosing the accounting change in the period of adoption. In February 2017, the FASB issued ASU No. 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets. The update clarifies that a financial asset is within the scope of Subtopic 610-20 if it meets the definition of an in substance nonfinancial asset. 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 the Southern Timber, Pacific Northwest Timber, New Zealand Timber and Real Estate segments. |
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” or “unallocated interest expense and other.” |
Derivatives | Accounting for derivative financial instruments is governed by ASC Topic 815, Derivatives and Hedging , (“ASC 815”). In accordance with ASC 815, the Company records its derivative instruments at fair value as either assets or liabilities in the Consolidated Balance Sheets. Changes in the instruments’ fair value are accounted for based on their intended use. Gains and losses on derivatives that are designated and qualify for cash flow hedge accounting are recorded as a component of accumulated other comprehensive 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. |
Subsequent Events | Subsequent Events Acquisition of 94,400 acres of coastal Florida, Georgia and South Carolina timberland In April 2017, the Company completed two separate transactions for the purchase of approximately 94,400 acres of timberland in coastal Florida, Georgia and South Carolina. The final aggregate purchase price of these two transactions, along with a 700 acre transaction that closed in March 2017, was approximately $214 million , or $2,250 per acre. These previously-announced acquisitions were made with proceeds from an equity offering completed in March 2017 and like-kind exchange proceeds from real estate and timberland sales. |
SEGMENT AND GEOGRAPHICAL INFO30
SEGMENT AND GEOGRAPHICAL INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables summarize the segment information for the three months ended March 31, 2017 and 2016 : Three Months Ended SALES 2017 2016 Southern Timber $32,715 $44,740 Pacific Northwest Timber 24,792 19,309 New Zealand Timber 40,740 36,023 Real Estate (a) 54,289 13,363 Trading 33,976 21,408 Total $186,512 $134,843 (a) The three months ended March 31, 2017 includes $42.0 million from Large Dispositions. Three Months Ended OPERATING INCOME (LOSS) 2017 2016 Southern Timber $13,939 $15,753 Pacific Northwest Timber (878 ) 1,385 New Zealand Timber 10,243 4,744 Real Estate (a) 29,665 4,225 Trading 1,097 350 Corporate and other (4,805 ) (3,460 ) Total Operating Income 49,261 22,997 Unallocated interest expense and other (7,897 ) (8,720 ) Total Income before Income Taxes $41,364 $14,277 (a) The three months ended March 31, 2017 includes $28.2 million from Large Dispositions. Three Months Ended DEPRECIATION, DEPLETION AND AMORTIZATION 2017 2016 Southern Timber $12,452 $16,556 Pacific Northwest Timber 10,210 4,639 New Zealand Timber 5,407 4,860 Real Estate (a) 10,707 3,203 Trading — — Corporate and other 100 84 Total $38,876 $29,342 (a) The three months ended March 31, 2017 includes $8.1 million from Large Dispositions. Three Months Ended NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT 2017 2016 Southern Timber — — Pacific Northwest Timber — — New Zealand Timber — 1,824 Real Estate (a) 10,222 2,284 Trading — — Corporate and other — — Total $10,222 $4,108 (a) The three months ended March 31, 2017 includes $5.7 million from Large Dispositions. |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | Rayonier’s debt consisted of the following at March 31, 2017 : March 31, 2017 Term Credit Agreement borrowings due 2024 at a variable interest rate of 2.5% at March 31, 2017 (a) $350,000 Senior Notes due 2022 at a fixed interest rate of 3.75% 325,000 Incremental Term Loan Agreement borrowings due 2026 at a variable interest rate of 2.7% at March 31, 2017 (b) 300,000 Mortgage Notes due 2017 at fixed interest rates of 4.35% 31,601 Revolving Credit Facility borrowings due 2020 at an average variable interest rate of 2.2% at March 31, 2017 40,000 New Zealand JV Working Capital Facility due 2017 at an average variable interest rate of 2.6% at March 31, 2017 11,325 New Zealand JV noncontrolling interest shareholder loan at 0% interest rate 16,486 Total debt 1,074,412 Less: Current maturities of long-term debt (42,926 ) Less: Deferred financing costs (3,418 ) Long-term debt, net of deferred financing costs $1,028,068 (a) As of March 31, 2017, the periodic interest rate on the term loan facility was LIBOR plus 1.625% . The Company estimates the effective fixed interest rate on the term loan facility to be approximately 3.3% after consideration of interest rate swaps and estimated patronage refunds. (b) As of March 31, 2017, the periodic interest rate on the incremental term loan was LIBOR plus 1.900% . The Company estimates the effective fixed interest rate on the incremental term loan facility to be approximately 2.8% after consideration of interest rate swaps and estimated patronage refunds. |
Schedule of Maturities of Long-Term Debt | Principal payments due during the next five years and thereafter are as follows: 2017 (a) 42,825 2018 — 2019 — 2020 40,000 2021 — Thereafter 991,486 Total Debt $1,074,311 (a) The mortgage notes due in 2017 were recorded at a premium of $0.1 million as of March 31, 2017 . Upon maturity the liability will be $31.5 million . |
HIGHER AND BETTER USE TIMBERL32
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2016 to March 31, 2017 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, 2016 $59,956 $10,418 $70,374 Plus: Current portion (a) 5,096 11,963 17,059 Total Balance at December 31, 2016 65,052 22,381 87,433 Non-cash cost of land and improved development (438 ) (8 ) (446 ) Timber depletion from harvesting activities and basis of timber sold in real estate sales (359 ) — (359 ) Capitalized real estate development investments (b) — 2,185 2,185 Capital expenditures (silviculture) 88 — 88 Intersegment transfers 4,144 — 4,144 Total Balance at March 31, 2017 68,487 24,558 93,045 Less: Current portion (a) (5,678 ) (13,654 ) (19,332 ) Non-current portion at March 31, 2017 $62,809 $10,904 $73,713 (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. (b) Capitalized real estate development investments includes $0.1 million of capitalized interest. |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Payments | At March 31, 2017, the future minimum payments under non-cancellable operating leases, timberland leases and other commitments were as follows: Operating Leases Timberland Leases (a) Commitments (b) Total Remaining 2017 $1,300 $7,209 $8,561 $17,070 2018 1,022 9,163 7,181 17,366 2019 813 8,688 7,174 16,675 2020 639 8,284 7,174 16,097 2021 554 8,342 7,174 16,070 Thereafter (c) 1,187 152,075 22,223 175,485 $5,515 $193,761 $59,487 $258,763 (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) Commitments include payments expected to be made on derivative financial instruments (foreign exchange contracts and interest rate swaps) and construction of the Company’s office building. (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, 2017 , the New Zealand JV has four CFL’s under termination notice, two that are currently being relinquished as harvest activities are concluding, one each in 2034 and 2044, 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. |
GUARANTEES (Tables)
GUARANTEES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Guarantees [Abstract] | |
Schedule of Guarantor Obligations | As of March 31, 2017 , the following financial guarantees were outstanding: Financial Commitments Maximum Potential Payment Carrying Amount of Associated Liability Standby letters of credit (a) $5,366 — Guarantees (b) 2,254 43 Surety bonds (c) 683 — Total financial commitments $8,303 $43 (a) Approximately $3.8 million of the standby letters of credit serve as credit support for infrastructure at the Company’s Wildlight development project. The remaining letters of credit support various insurance related agreements, primarily workers’ compensation. These letters of credit will expire at various dates during 2017 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, 2017 , 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. Rayonier has also obtained performance bonds to secure the development activity at the Company’s Wildlight development project. These surety bonds expire at various dates during 2017 and 2018 and are expected to be renewed as required. |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 2016 Net Income $35,083 $15,058 Less: Net income attributable to noncontrolling interest 1,240 586 Net income attributable to Rayonier Inc. $33,843 $14,472 Shares used for determining basic earnings per common share 123,587,901 122,556,239 Dilutive effect of: Stock options 106,690 53,526 Performance and restricted shares 228,275 35,124 Shares used for determining diluted earnings per common share 123,922,866 122,644,889 Basic earnings per common share attributable to Rayonier Inc.: $0.27 $0.12 Diluted earnings per common share attributable to Rayonier Inc.: $0.27 $0.12 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Three Months Ended 2017 2016 Anti-dilutive shares excluded from the computations of diluted earnings per share: Stock options, performance and restricted shares 592,653 1,095,453 Total 592,653 1,095,453 |
DERIVATIVE FINANCIAL INSTRUME36
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 and 2016 . Three Months Ended Income Statement Location 2017 2016 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other comprehensive income (loss) ($71 ) $711 Foreign currency option contracts Other comprehensive income (loss) (41 ) 833 Interest rate swaps Other comprehensive income (loss) 2,633 (14,886 ) Derivatives designated as a net investment hedge: Foreign currency exchange contract Other comprehensive income (loss) — (4,606 ) Derivatives not designated as hedging instruments: Foreign currency exchange contracts Other operating income, net — 895 Interest income and miscellaneous income (expense), net 125 — Foreign currency option contracts Other operating income, net — 258 Interest rate swaps Interest income and miscellaneous income (expense), net — (1,219 ) |
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, 2017 December 31, 2016 Derivatives designated as cash flow hedges: Foreign currency exchange contracts $61,200 $44,800 Foreign currency option contracts 81,000 91,000 Interest rate swaps 650,000 650,000 Derivative not designated as a hedging instrument: Foreign currency exchange contracts 11,250 — |
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, 2017 December 31, 2016 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other current assets $730 $692 Other assets 102 33 Other current liabilities (223 ) (261 ) Other non-current liabilities (7 ) — Foreign currency option contracts Other current assets 718 1,064 Other assets 167 327 Other current liabilities (335 ) (574 ) Other non-current liabilities (200 ) (426 ) Interest rate swaps Other assets 18,106 17,204 Other non-current liabilities (4,248 ) (5,979 ) Derivative not designated as a hedging instrument: Foreign currency exchange contracts Other current assets 121 — Total derivative contracts: Other current assets $1,569 $1,756 Other assets 18,375 17,564 Total derivative assets $19,944 $19,320 Other current liabilities (558 ) (835 ) Other non-current liabilities (4,455 ) (6,405 ) Total derivative liabilities ($5,013 ) ($7,240 ) (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, 2017 | |
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, 2017 and December 31, 2016 , using market information and what the Company believes to be appropriate valuation methodologies under GAAP: March 31, 2017 December 31, 2016 Asset (Liability) (a) Carrying Amount Fair Value Carrying Amount Fair Value Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $219,357 $219,357 — $85,909 $85,909 — Restricted cash (b) 111,276 111,276 — 71,708 71,708 — Current maturities of long-term debt (42,926 ) — (43,250 ) (31,676 ) — (31,984 ) Long-term debt (c) (1,028,068 ) — (1,031,648 ) (1,030,205 ) — (1,030,708 ) Interest rate swaps (d) 13,858 — 13,858 11,225 — 11,225 Foreign currency exchange contracts (d) 723 — 723 464 — 464 Foreign currency option contracts (d) 350 — 350 391 — 391 (a) The Company did not have Level 3 assets or liabilities at March 31, 2017 . (b) Restricted cash represent the proceeds from like-kind exchange sales deposited with a third-party intermediary and cash held in escrow for a real estate sale. See Note 16 — Restricted Cash for additional information. (c) The carrying amount of long-term debt is presented net of capitalized debt costs on non-revolving debt. (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, 2017 | |
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 2017 2016 2017 2016 Components of Net Periodic Benefit Cost Service cost — $327 $13 $2 Interest cost 815 869 2 12 Expected return on plan assets (a) (945 ) (1,008 ) — — Amortization of losses (gains) 116 629 — (12 ) Net periodic benefit (gain) cost ($14 ) $817 $15 $2 (a) The weighted-average expected long-term rate of return on plan assets used in computing 2017 net periodic benefit cost for pension benefits is 7.2 percent. |
OTHER OPERATING INCOME, NET (Ta
OTHER OPERATING INCOME, NET (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Interest and Other Income | Other operating income, net comprised the following: Three Months Ended March 31, 2017 2016 Lease and license income, primarily from hunting $4,110 $4,559 Other non-timber income 2,798 519 Foreign currency income (loss) 313 (295 ) Gain (loss) on foreign currency exchange and option contracts 652 (522 ) Gain on foreign currency derivatives (a) — 1,153 Miscellaneous income, net 879 490 Total $8,752 $5,904 (a) The Company used foreign exchange derivatives to mitigate the risk of fluctuations in foreign exchange rates while awaiting the capital contribution to the New Zealand JV. |
INVENTORY (Tables)
INVENTORY (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | As of March 31, 2017 and December 31, 2016 , Rayonier’s inventory was solely comprised of finished goods, as follows: March 31, 2017 December 31, 2016 Finished goods inventory Real estate inventory (a) $19,332 $17,059 Log inventory 7,823 4,320 Total inventory $27,155 $21,379 (a) Represents cost of HBU real estate (including capitalized development investments) expected to be sold within 12 months. See Note 5 — Higher And Better Use Timberlands And Real Estate Development Investments for additional information. |
ACCUMULATED OTHER COMPREHENSI41
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017 and the year ended December 31, 2016 . 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, 2015 ($2,450 ) $6,271 ($11,592 ) ($25,732 ) ($33,503 ) Other comprehensive income/(loss) before reclassifications 7,387 — 22,024 3,020 (b) 32,431 Amounts reclassified from accumulated other comprehensive loss — (4,606 ) 583 2,513 (c) (1,510 ) Net other comprehensive income/(loss) 7,387 (4,606 ) 22,607 5,533 30,921 Recapitalization of New Zealand JV 3,622 — (184 ) — 3,438 Balance as of December 31, 2016 $8,559 $1,665 $10,831 ($20,199 ) $856 Other comprehensive income before reclassifications 2,002 — 2,975 (a) — 4,977 Amounts reclassified from accumulated other comprehensive income — — (404 ) 116 (c) (288 ) Net other comprehensive income 2,002 — 2,571 116 4,689 Balance as of March 31, 2017 $10,561 $1,665 $13,402 ($20,083 ) $5,545 (a) Includes $2.6 million of other comprehensive gain related to interest rate swaps. See Note 11 — Derivative Financial Instruments and Hedging Activities for additional information. (b) This accumulated other comprehensive income component is comprised of $2.4 million from the annual computation of pension liabilities and a $5.4 million curtailment gain. See Note 15 — Employee Benefit Plans of the 2016 Form 10-K for additional information. (c) This component of other comprehensive income is included in the computation of net periodic pension cost. See Note 13 — Employee Benefit Plans for additional information. |
Reclassification out of Accumulated Other Comprehensive Income | The following table presents details of the amounts reclassified in their entirety from AOCI to net income for the three months ended March 31, 2017 and March 31, 2016 : Details about accumulated other comprehensive income components Amount reclassified from accumulated other comprehensive income Affected line item in the income statement March 31, 2017 March 31, 2016 Realized (gain) loss on foreign currency exchange contracts ($446 ) $334 Other operating income, net Realized (gain) loss on foreign currency option contracts (282 ) 554 Other operating income, net Noncontrolling interest 168 (314 ) Comprehensive income (loss) attributable to noncontrolling interest Income tax (expense) benefit on loss from foreign currency contracts 156 (161 ) Income tax (expense) benefit Net (gain) loss from accumulated other comprehensive income ($404 ) $413 |
CONSOLIDATING FINANCIAL STATE42
CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Consolidating Statements of (Loss) Income and Comprehensive (Loss) Income | CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended March 31, 2017 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated SALES — — $186,512 — $186,512 Costs and Expenses Cost of sales — — 136,413 — 136,413 Selling and general expenses — 3,536 6,054 — 9,590 Other operating expense (income), net — 111 (8,863 ) — (8,752 ) — 3,647 133,604 — 137,251 OPERATING (LOSS) INCOME — (3,647 ) 52,908 — 49,261 Interest expense (3,139 ) (4,858 ) (418 ) — (8,415 ) Interest and miscellaneous income (expense), net 2,202 689 (2,373 ) — 518 Equity in income from subsidiaries 34,780 42,744 — (77,524 ) — INCOME BEFORE INCOME TAXES 33,843 34,928 50,117 (77,524 ) 41,364 Income tax expense — (148 ) (6,133 ) — (6,281 ) NET INCOME 33,843 34,780 43,984 (77,524 ) 35,083 Less: Net income attributable to noncontrolling interest — — 1,240 — 1,240 NET INCOME ATTRIBUTABLE TO RAYONIER INC. 33,843 34,780 42,744 (77,524 ) 33,843 OTHER COMPREHENSIVE INCOME Foreign currency translation adjustment, net of income tax 2,002 — 2,432 (2,002 ) 2,432 Cash flow hedges, net of income tax 2,572 2,633 (80 ) (2,572 ) 2,553 Amortization of pension and postretirement plans, net of income tax 116 116 — (116 ) 116 Total other comprehensive income 4,690 2,749 2,352 (4,690 ) 5,101 COMPREHENSIVE INCOME 38,533 37,529 46,336 (82,214 ) 40,184 Less: Comprehensive income attributable to noncontrolling interest — — 1,651 — 1,651 COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. $38,533 $37,529 $44,685 ($82,214 ) $38,533 CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) 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 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 ) Amortization of pension and postretirement plans, net of income tax 617 617 — (617 ) 617 Total other comprehensive (loss) income (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 |
Schedule of Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS As of March 31, 2017 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $157,916 $18,524 $42,917 — $219,357 Accounts receivable, less allowance for doubtful accounts — 946 32,488 — 33,434 Insurance settlement receivable 73,000 — — — 73,000 Inventory — — 27,155 — 27,155 Prepaid expenses — 1,839 12,884 — 14,723 Assets held for sale — — 9,006 — 9,006 Other current assets — 20 8,227 — 8,247 Total current assets 230,916 21,329 132,677 — 384,922 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — 2,280,814 — 2,280,814 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS — — 73,713 — 73,713 NET PROPERTY, PLANT AND EQUIPMENT — 141 16,708 — 16,849 RESTRICTED CASH — — 111,276 — 111,276 INVESTMENT IN SUBSIDIARIES 1,434,995 2,715,947 — (4,150,942 ) — INTERCOMPANY RECEIVABLE 29,866 (615,867 ) 586,001 — — OTHER ASSETS 2 10,780 40,554 — 51,336 TOTAL ASSETS $1,695,779 $2,132,330 $3,241,743 ($4,150,942 ) $2,918,910 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable — $4,990 $25,966 — $30,956 Insurance settlement payable 73,740 — — — 73,740 Current maturities of long-term debt 31,601 — 11,325 — 42,926 Accrued taxes — 28 3,320 — 3,348 Accrued payroll and benefits — 1,423 1,656 — 3,079 Accrued interest 6,094 1,973 254 — 8,321 Other current liabilities — 473 20,099 — 20,572 Total current liabilities 111,435 8,887 62,620 — 182,942 LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS 291,557 663,425 73,086 — 1,028,068 PENSION AND OTHER POSTRETIREMENT BENEFITS — 32,402 (684 ) — 31,718 OTHER NON-CURRENT LIABILITIES — 11,584 17,304 — 28,888 INTERCOMPANY PAYABLE (267,713 ) (18,963 ) 286,676 — — TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,560,500 1,434,995 2,715,947 (4,150,942 ) 1,560,500 Noncontrolling interest — — 86,794 — 86,794 TOTAL SHAREHOLDERS’ EQUITY 1,560,500 1,434,995 2,802,741 (4,150,942 ) 1,647,294 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,695,779 $2,132,330 $3,241,743 ($4,150,942 ) $2,918,910 CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2016 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $21,453 $9,461 $54,995 — $85,909 Accounts receivable, less allowance for doubtful accounts — 2,991 17,673 — 20,664 Inventory — — 21,379 — 21,379 Prepaid expenses — 427 11,380 — 11,807 Assets held for sale — — 23,171 — 23,171 Other current assets — 236 1,638 — 1,874 Total current assets 21,453 13,115 130,236 — 164,804 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — 2,291,015 — 2,291,015 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS — — 70,374 — 70,374 NET PROPERTY, PLANT AND EQUIPMENT — 177 13,857 — 14,034 RETRICTED CASH — — 71,708 — 71,708 INVESTMENT IN SUBSIDIARIES 1,422,081 2,671,428 — (4,093,509 ) — INTERCOMPANY RECEIVABLE 26,472 (611,571 ) 585,099 — — OTHER ASSETS 2 46,846 26,977 — 73,825 TOTAL ASSETS $1,470,008 $2,119,995 $3,189,266 ($4,093,509 ) $2,685,760 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable — $1,194 $21,143 — $22,337 Current maturities of long-term debt 31,676 — — — 31,676 Accrued taxes — (111 ) 2,768 — 2,657 Accrued payroll and benefits — 5,013 4,264 — 9,277 Accrued interest 3,047 2,040 253 — 5,340 Other current liabilities — 165 20,514 — 20,679 Total current liabilities 34,723 8,301 48,942 — 91,966 LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS 291,390 663,343 75,472 — 1,030,205 PENSION AND OTHER POSTRETIREMENT BENEFITS — 32,541 (685 ) — 31,856 OTHER NON-CURRENT LIABILITIES — 12,690 22,291 — 34,981 INTERCOMPANY PAYABLE (267,715 ) (18,961 ) 286,676 — — TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,411,610 1,422,081 2,671,428 (4,093,509 ) 1,411,610 Noncontrolling interest — — 85,142 — 85,142 TOTAL SHAREHOLDERS’ EQUITY 1,411,610 1,422,081 2,756,570 (4,093,509 ) 1,496,752 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,470,008 $2,119,995 $3,189,266 ($4,093,509 ) $2,685,760 |
Schedule of Condensed Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2017 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES ($1,192 ) $36,931 ($1,796 ) — $33,943 INVESTING ACTIVITIES Capital expenditures — — (14,362 ) — (14,362 ) Real estate development investments — — (2,185 ) — (2,185 ) Purchase of timberlands — — (11,293 ) — (11,293 ) Net proceeds from large disposition — — 42,034 — 42,034 Rayonier office building under construction — — (2,604 ) — (2,604 ) Change in restricted cash — — (39,568 ) — (39,568 ) Investment in subsidiaries — 2,636 — (2,636 ) — Other — — (5,617 ) — (5,617 ) CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES — 2,636 (33,595 ) (2,636 ) (33,595 ) FINANCING ACTIVITIES Issuance of debt — 15,000 14,719 — 29,719 Repayment of debt — (15,000 ) (5,530 ) — (20,530 ) Dividends paid (30,618 ) — — — (30,618 ) Proceeds from the issuance of common shares 2,251 — — — 2,251 Issuance of shares under equity offering 152,345 — — — 152,345 Intercompany distributions 13,677 (30,504 ) 14,191 2,636 — CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES 137,655 (30,504 ) 23,380 2,636 133,167 EFFECT OF EXCHANGE RATE CHANGES ON CASH — — (67 ) — (67 ) CASH AND CASH EQUIVALENTS Change in cash and cash equivalents 136,463 9,063 (12,078 ) — 133,448 Balance, beginning of year 21,453 9,461 54,995 — 85,909 Balance, end of period $157,916 $18,524 $42,917 — $219,357 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 ) Rayonier office building under construction — — (186 ) — (186 ) Change in restricted cash — — 10,613 — 10,613 Investment in subsidiaries — 1,136 — (1,136 ) — Other — — (1,404 ) — (1,404 ) 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 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) $ in Millions | 1 Months Ended | |
Apr. 30, 2017USD ($)asale_transaction$ / a | Mar. 31, 2017a | |
Subsequent Event [Line Items] | ||
Acres of timberlands acquired | 700 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Acres of timberlands acquired | 94,400 | |
Number of sales transactions | sale_transaction | 2 | |
Proceeds from sale of property | $ | $ 214 | |
Payments to acquire land, price per acre | $ / a | 2,250 |
JOINT VENTURE INVESTMENT (Detai
JOINT VENTURE INVESTMENT (Details) - Matariki Forestry Group a in Millions | Mar. 31, 2017a |
Schedule of Equity Method Investments [Line Items] | |
Acres of timberland owned | 0.4 |
Step acquisition percentage equity interest in acquiree | 23.00% |
SEGMENT AND GEOGRAPHICAL INFO45
SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Segment Sales) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
SALES | $ 186,512 | $ 134,843 |
Southern Timber | ||
Segment Reporting Information [Line Items] | ||
SALES | 32,715 | 44,740 |
Pacific Northwest Timber | ||
Segment Reporting Information [Line Items] | ||
SALES | 24,792 | 19,309 |
New Zealand Timber | ||
Segment Reporting Information [Line Items] | ||
SALES | 40,740 | 36,023 |
Real Estate | ||
Segment Reporting Information [Line Items] | ||
SALES | 54,289 | 13,363 |
Real Estate | Timberland | Dispositions | ||
Segment Reporting Information [Line Items] | ||
SALES | 42,000 | |
Trading | ||
Segment Reporting Information [Line Items] | ||
SALES | $ 33,976 | $ 21,408 |
SEGMENT AND GEOGRAPHICAL INFO46
SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Operating Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
Total Operating Income | $ 49,261 | $ 22,997 |
Unallocated interest expense and other | (7,897) | (8,720) |
INCOME BEFORE INCOME TAXES | 41,364 | 14,277 |
Real Estate | Dispositions | Timberland | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | 28,200 | |
Operating Segments | Southern Timber | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | 13,939 | 15,753 |
Operating Segments | Pacific Northwest Timber | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | (878) | 1,385 |
Operating Segments | New Zealand Timber | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | 10,243 | 4,744 |
Operating Segments | Real Estate | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | 29,665 | 4,225 |
Operating Segments | Trading | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | 1,097 | 350 |
Corporate and other | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | $ (4,805) | $ (3,460) |
SEGMENT AND GEOGRAPHICAL INFO47
SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Depreciation, Depletion and Amortization) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
DEPRECIATION, DEPLETION AND AMORTIZATION | $ 38,876 | $ 29,342 |
Real Estate | Dispositions | Timberland | ||
Segment Reporting Information [Line Items] | ||
DEPRECIATION, DEPLETION AND AMORTIZATION | 8,100 | |
Operating Segments | Southern Timber | ||
Segment Reporting Information [Line Items] | ||
DEPRECIATION, DEPLETION AND AMORTIZATION | 12,452 | 16,556 |
Operating Segments | Pacific Northwest Timber | ||
Segment Reporting Information [Line Items] | ||
DEPRECIATION, DEPLETION AND AMORTIZATION | 10,210 | 4,639 |
Operating Segments | New Zealand Timber | ||
Segment Reporting Information [Line Items] | ||
DEPRECIATION, DEPLETION AND AMORTIZATION | 5,407 | 4,860 |
Operating Segments | Real Estate | ||
Segment Reporting Information [Line Items] | ||
DEPRECIATION, DEPLETION AND AMORTIZATION | 10,707 | 3,203 |
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 | $ 100 | $ 84 |
SEGMENT AND GEOGRAPHICAL INFO48
SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Non-Cash Cost of Land and Improved Development) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Segment Reporting Information [Line Items] | ||
NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT | $ 10,222 | $ 4,108 |
Real Estate | Timberland | Dispositions | ||
Segment Reporting Information [Line Items] | ||
NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT | 5,700 | |
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 | 0 | 1,824 |
Operating Segments | Real Estate | ||
Segment Reporting Information [Line Items] | ||
NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT | 10,222 | 2,284 |
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 | 3 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2016 | Aug. 05, 2015 | |
Debt Instrument [Line Items] | |||
Total debt | $ 1,074,412 | ||
Less: Current maturities of long-term debt | (42,926) | $ (31,676) | |
Less: Deferred financing costs | (3,418) | ||
Long-term debt, net of deferred financing costs | 1,028,068 | $ 1,030,205 | |
Term Credit Agreement borrowings due 2024 at a variable interest rate of 2.5% at March 31, 2017 | |||
Debt Instrument [Line Items] | |||
Total debt | $ 350,000 | ||
Debt instrument, interest rate during period | 3.30% | ||
Periodic effective interest rate | 2.50% | ||
Term Credit Agreement borrowings due 2024 at a variable interest rate of 2.5% at March 31, 2017 | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis points on periodic interest rate | 1.625% | ||
Term Credit Agreement borrowings due 2024 at a variable interest rate of 2.5% at March 31, 2017 | Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Total debt | $ 350,000 | ||
Senior Notes due 2022 at a fixed interest rate of 3.75% | |||
Debt Instrument [Line Items] | |||
Total debt | $ 325,000 | ||
Fixed interest rate | 3.75% | ||
Incremental Term Loan Agreement borrowings due 2026 at a variable interest rate of 2.7% at March 31, 2017 | |||
Debt Instrument [Line Items] | |||
Total debt | $ 300,000 | ||
Debt instrument, interest rate during period | 2.80% | ||
Periodic effective interest rate | 2.70% | ||
Incremental Term Loan Agreement borrowings due 2026 at a variable interest rate of 2.7% at March 31, 2017 | LIBOR | |||
Debt Instrument [Line Items] | |||
Basis points on periodic interest rate | 1.90% | ||
Mortgage Notes due 2017 at fixed interest rates of 4.35% | |||
Debt Instrument [Line Items] | |||
Total debt | $ 31,601 | ||
Fixed interest rate | 4.35% | ||
Revolving Credit Facility borrowings due 2020 at an average variable interest rate of 2.2% at March 31, 2017 | |||
Debt Instrument [Line Items] | |||
Total debt | $ 40,000 | ||
Periodic effective interest rate | 2.20% | ||
New Zealand JV Working Capital Facility due 2017 at an average variable interest rate of 2.6% at March 31, 2017 | |||
Debt Instrument [Line Items] | |||
Total debt | $ 11,325 | ||
Periodic effective interest rate | 2.60% | ||
New Zealand JV noncontrolling interest shareholder loan at 0% interest rate | |||
Debt Instrument [Line Items] | |||
Total debt | $ 16,486 | ||
Periodic effective interest rate | 0.00% |
DEBT (Schedule of Long Term Mat
DEBT (Schedule of Long Term Maturities) (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Debt Instrument [Line Items] | |
2,017 | $ 42,825 |
2,018 | 0 |
2,019 | 0 |
2,020 | 40,000 |
2,021 | 0 |
Thereafter | 991,486 |
Total Debt | 1,074,311 |
Mortgage Notes due 2017 at fixed interest rates of 4.35% | |
Debt Instrument [Line Items] | |
Total Debt | 31,500 |
Debt instrument, unamortized premium | $ 100 |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) NZD in Millions | 3 Months Ended | ||||
Mar. 31, 2017USD ($) | Mar. 31, 2017NZD | Apr. 28, 2016USD ($) | Aug. 31, 2015USD ($) | Aug. 05, 2015USD ($) | |
Debt Instrument [Line Items] | |||||
Total debt | $ 1,074,412,000 | ||||
Term Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Total debt | 350,000,000 | ||||
Term Credit Agreement | Term Loan Facility | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 350,000,000 | ||||
Term Credit Agreement | Unsecured Revolving Credit Agreement Expiring 2020 | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 200,000,000 | ||||
Solid Waste Bond | |||||
Debt Instrument [Line Items] | |||||
Repayments of debt | 15,000,000 | ||||
Revolving Credit Facility borrowings due 2020 at an average variable interest rate of 2.2% at March 31, 2017 | |||||
Debt Instrument [Line Items] | |||||
Proceeds from line of credit | 15,000,000 | ||||
Remaining borrowing capacity | 154,600,000 | ||||
Total debt | 40,000,000 | ||||
New Zealand JV Working Capital Facility | |||||
Debt Instrument [Line Items] | |||||
Total debt | 11,325,000 | ||||
New Zealand JV Noncontrolling Interest | |||||
Debt Instrument [Line Items] | |||||
Total debt | 16,486,000 | ||||
Incremental Term Loan Agreement | |||||
Debt Instrument [Line Items] | |||||
Total debt | $ 300,000,000 | ||||
New Zealand JV | New Zealand JV Working Capital Facility | |||||
Debt Instrument [Line Items] | |||||
Proceeds from line of credit | 11,300,000 | ||||
Remaining borrowing capacity | NZD | NZD 23.8 | ||||
New Zealand JV | New Zealand JV Noncontrolling Interest | |||||
Debt Instrument [Line Items] | |||||
Repayments of debt | 2,500,000 | ||||
Increase in debt due to favorable changes in exchange rates | 200,000 | ||||
Standby Letters of Credit | Revolving Credit Facility borrowings due 2020 at an average variable interest rate of 2.2% at March 31, 2017 | |||||
Debt Instrument [Line Items] | |||||
Amount to secure outstanding letters of credit | $ 5,400,000 |
HIGHER AND BETTER USE TIMBERL52
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Real Estate, Land and Land Development Costs [Roll Forward] | |
Non-current portion, Beginning Balance | $ 70,374 |
Plus: Current portion, Beginning Balance | 17,059 |
Total Balance, Beginning Balance | 87,433 |
Non-cash cost of land and improved development | (446) |
Timber depletion from harvesting activities and basis of timber sold in real estate sales | (359) |
Capitalized real estate development investments | 2,185 |
Capital expenditures (silviculture) | 88 |
Intersegment transfers | 4,144 |
Total Balance, Ending Balance | 93,045 |
Less: Current portion, Ending Balance | (19,332) |
Non-current portion, Ending Balance | 73,713 |
Capitalized interest | 100 |
Land and Timber | |
Real Estate, Land and Land Development Costs [Roll Forward] | |
Non-current portion, Beginning Balance | 59,956 |
Plus: Current portion, Beginning Balance | 5,096 |
Total Balance, Beginning Balance | 65,052 |
Non-cash cost of land and improved development | (438) |
Timber depletion from harvesting activities and basis of timber sold in real estate sales | (359) |
Capitalized real estate development investments | 0 |
Capital expenditures (silviculture) | 88 |
Intersegment transfers | 4,144 |
Total Balance, Ending Balance | 68,487 |
Less: Current portion, Ending Balance | (5,678) |
Non-current portion, Ending Balance | 62,809 |
Development Investments | |
Real Estate, Land and Land Development Costs [Roll Forward] | |
Non-current portion, Beginning Balance | 10,418 |
Plus: Current portion, Beginning Balance | 11,963 |
Total Balance, Beginning Balance | 22,381 |
Non-cash cost of land and improved development | (8) |
Timber depletion from harvesting activities and basis of timber sold in real estate sales | 0 |
Capitalized real estate development investments | 2,185 |
Capital expenditures (silviculture) | 0 |
Intersegment transfers | 0 |
Total Balance, Ending Balance | 24,558 |
Less: Current portion, Ending Balance | (13,654) |
Non-current portion, Ending Balance | $ 10,904 |
COMMITMENTS (Narrative) (Detail
COMMITMENTS (Narrative) (Details) - Timberland Leases | 3 Months Ended |
Mar. 31, 2017 | |
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, 2017USD ($)lease | |
Commitments | |
Remaining 2,017 | $ 8,561 |
2,018 | 7,181 |
2,019 | 7,174 |
2,020 | 7,174 |
2,021 | 7,174 |
Thereafter | 22,223 |
Commitments, total | 59,487 |
Total | |
Remaining 2,017 | 17,070 |
2,018 | 17,366 |
2,019 | 16,675 |
2,020 | 16,097 |
2,021 | 16,070 |
Thereafter | 175,485 |
Total | $ 258,763 |
Matariki Crown Forest Licenses | |
Total | |
Future minimum payments | 20 years |
Operating lease, termination notice | 35 years |
Operating lease, renewal term | 1 year |
Number of leases under termination notice | lease | 4 |
Operating Leases | |
Leases | |
Remaining 2,017 | $ 1,300 |
2,018 | 1,022 |
2,019 | 813 |
2,020 | 639 |
2,021 | 554 |
Thereafter | 1,187 |
Operating leases, total | 5,515 |
Timberland Leases | |
Leases | |
Remaining 2,017 | 7,209 |
2,018 | 9,163 |
2,019 | 8,688 |
2,020 | 8,284 |
2,021 | 8,342 |
Thereafter | 152,075 |
Operating leases, total | $ 193,761 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense (benefit) | $ 6,281 | $ (781) | |
U.S. federal statutory tax rate, percentage | 35.00% | ||
Effective income tax rate | 15.60% | (5.50%) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative-effect adjustment due to adoption of ASU No. 2016-16 | $ 14,365 | ||
Retained Earnings | Accounting Standards Update 2016-16 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative-effect adjustment due to adoption of ASU No. 2016-16 | $ 14,365 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) $ in Thousands | Jan. 09, 2015claimplaintiff | Nov. 10, 2014claim | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | ||||
Number of claims filed | claim | 5 | |||
Number of consolidated claims filed | claim | 1 | |||
Number of lead plaintiffs | plaintiff | 2 | |||
Loss Contingencies [Line Items] | ||||
Insurance settlement payable | $ 73,740 | $ 0 | ||
Rayonier Inc. Securities Litigation | ||||
Loss Contingencies [Line Items] | ||||
Insurance settlement payable, reimbursement of pre-litigation expenses | 740 | |||
Directors and Officers Liability Insurance | Rayonier Inc. Securities Litigation | ||||
Loss Contingencies [Line Items] | ||||
Insurance settlement payable | $ 73,000 |
GUARANTEES (Details)
GUARANTEES (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | $ 8,303 |
Carrying Amount of Associated Liability | 43 |
Standby letters of credit | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | 5,366 |
Carrying Amount of Associated Liability | 0 |
Letter of credit for development project | 3,800 |
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 | 683 |
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 | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Net income | $ 35,083 | $ 15,058 | $ 217,770 |
Less: Net income attributable to noncontrolling interest | 1,240 | 586 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | $ 33,843 | $ 14,472 | |
Shares used for determining basic earnings per common share (in shares) | 123,587,901 | 122,556,239 | |
Dilutive effect of: | |||
Stock options (in shares) | 106,690 | 53,526 | |
Performance and restricted shares (in shares) | 228,275 | 35,124 | |
Shares used for determining diluted earnings per common share (in shares) | 123,922,866 | 122,644,889 | |
Basic earnings per common share attributable to Rayonier Inc. (in dollars per share) | $ 0.27 | $ 0.12 | |
Diluted earnings per common share attributable to Rayonier Inc. (in dollars per share) | $ 0.27 | $ 0.12 |
EARNINGS PER COMMON SHARE (Sc59
EARNINGS PER COMMON SHARE (Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share) (Details) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
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) | 592,653 | 1,095,453 |
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) | 592,653 | 1,095,453 |
DERIVATIVE FINANCIAL INSTRUME60
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | ||||
Apr. 30, 2016USD ($)derivative_agreement | Aug. 31, 2015USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Jul. 07, 2016USD ($) | |
Derivative [Line Items] | ||||||
Gain (loss) on foreign currency exchange and option contracts | $ 652 | $ (522) | ||||
Not Designated as Hedging Instrument | Foreign currency exchange contracts | ||||||
Derivative [Line Items] | ||||||
Notional amount | 11,250 | $ 0 | ||||
Cash Flow Hedging | Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
AOCI gain (loss) balance expected to be reclassified in next twelve months, net of tax | 600 | |||||
Cash Flow Hedging | Designated as Hedging Instrument | Foreign currency exchange contracts | ||||||
Derivative [Line Items] | ||||||
Notional amount | 61,200 | 44,800 | ||||
Cash Flow Hedging | Designated as Hedging Instrument | Interest rate swaps | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 100,000 | $ 170,000 | $ 650,000 | $ 650,000 | ||
Derivative, term of contract | 10 years | 9 years | ||||
Derivative, average rate | 1.60% | 2.20% | ||||
Derivative, basis spread on variable rate | 1.90% | |||||
Derivative, fixed interest rate | 3.50% | 3.83% | ||||
Number of interest rate derivatives held | derivative_agreement | 2 | |||||
Cash Flow Hedging | Designated as Hedging Instrument | Forward Interest Rate Swap | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 180,000 | |||||
Derivative, term of contract | 9 years | |||||
Derivative, average rate | 2.35% | |||||
Derivative, basis spread on variable rate | 1.625% | |||||
Derivative, fixed interest rate | 3.97% | |||||
Cash Flow Hedging | Designated as Hedging Instrument | Interest Rate Contract | ||||||
Derivative [Line Items] | ||||||
Notional amount | $ 100,000 | |||||
Derivative, average rate | 1.26% | |||||
Derivative, basis spread on variable rate | 1.90% | |||||
Derivative, average variable interest rate | 3.16% | |||||
New Zealand JV | Minimum | ||||||
Derivative [Line Items] | ||||||
Percent of forecast sales and purchases hedged for 3 months | 35.00% | |||||
Percent of forecast sales and purchases hedged for three to 12 months | 25.00% | |||||
New Zealand JV | Minimum | Forecasted Sales and Purchases, term 1 | ||||||
Derivative [Line Items] | ||||||
Length of time, foreign currency cash flow hedge | 3 months | |||||
New Zealand JV | Minimum | Forecasted Sales and Purchases, term 2 | ||||||
Derivative [Line Items] | ||||||
Length of time, foreign currency cash flow hedge | 12 months | |||||
New Zealand JV | Minimum | Foreign Exchange Forward | ||||||
Derivative [Line Items] | ||||||
Percent of forecast distributions hedged for the next 3 months | 75.00% | |||||
New Zealand JV | Minimum | Forecasted Distributions, term 2 | ||||||
Derivative [Line Items] | ||||||
Length of time, foreign currency cash flow hedge | 3 months | |||||
New Zealand JV | Minimum | Forecasted Distributions, term 1 | ||||||
Derivative [Line Items] | ||||||
Length of time, foreign currency cash flow hedge | 6 months | |||||
New Zealand JV | Maximum | ||||||
Derivative [Line Items] | ||||||
Percent of forecast sales and purchases hedged for 3 months | 90.00% | |||||
Percent of forecast sales and purchases hedged for three to 12 months | 75.00% | |||||
Percent of forecast sales and purchases hedged for 12 to 18 months | 50.00% | |||||
New Zealand JV | Maximum | Forecasted Sales and Purchases, term 1 | ||||||
Derivative [Line Items] | ||||||
Length of time, foreign currency cash flow hedge | 12 months | |||||
New Zealand JV | Maximum | Forecasted Sales and Purchases, term 2 | ||||||
Derivative [Line Items] | ||||||
Length of time, foreign currency cash flow hedge | 18 months | |||||
New Zealand JV | Maximum | Foreign Exchange Forward | ||||||
Derivative [Line Items] | ||||||
Percent of forecast distributions hedged for the next 3 months | 100.00% | |||||
Percent of forecast distributions hedged for 6 months | 75.00% | |||||
Percent of forecast distributions hedged for 6 to 12 months | 50.00% | |||||
New Zealand JV | Maximum | Forecasted Distributions, term 2 | ||||||
Derivative [Line Items] | ||||||
Length of time, foreign currency cash flow hedge | 6 months | |||||
New Zealand JV | Maximum | Forecasted Distributions, term 1 | ||||||
Derivative [Line Items] | ||||||
Length of time, foreign currency cash flow hedge | 12 months | |||||
Interest income and miscellaneous income (expense), net | Not Designated as Hedging Instrument | Foreign currency exchange contracts | ||||||
Derivative [Line Items] | ||||||
Non-designated hedged item, gain (loss) recognized in income | $ 100 | 0 | ||||
Interest income and miscellaneous income (expense), net | Not Designated as Hedging Instrument | Interest rate swaps | ||||||
Derivative [Line Items] | ||||||
Non-designated hedged item, gain (loss) recognized in income | $ 0 | $ (1,219) |
DERIVATIVE FINANCIAL INSTRUME61
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Income Statement Location) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Designated as Hedging Instrument | Foreign currency exchange contracts | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Designated hedged item, gain (loss) recognized in other comprehensive income | $ (71) | $ 711 |
Designated as Hedging Instrument | Foreign currency exchange contracts | Net Investment Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Designated hedged item, gain (loss) recognized in other comprehensive income | 0 | (4,606) |
Designated as Hedging Instrument | Foreign currency option contracts | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Designated hedged item, gain (loss) recognized in other comprehensive income | (41) | 833 |
Designated as Hedging Instrument | Interest rate swaps | Cash Flow Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Designated hedged item, gain (loss) recognized in other comprehensive income | 2,633 | (14,886) |
Not Designated as Hedging Instrument | Foreign currency exchange contracts | Other operating income, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Non-designated hedged item, gain (loss) recognized in income | 0 | 895 |
Not Designated as Hedging Instrument | Foreign currency exchange contracts | Interest income and miscellaneous income (expense), net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Non-designated hedged item, gain (loss) recognized in income | 100 | 0 |
Not Designated as Hedging Instrument | Foreign currency option contracts | Other operating income, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Non-designated hedged item, gain (loss) recognized in income | 0 | 258 |
Not Designated as Hedging Instrument | Interest rate swaps | Interest income and miscellaneous income (expense), net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Non-designated hedged item, gain (loss) recognized in income | $ 0 | $ (1,219) |
DERIVATIVE FINANCIAL INSTRUME62
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Notional Amounts) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Apr. 30, 2016 | Aug. 31, 2015 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency exchange contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | $ 61,200 | $ 44,800 | ||
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency option contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 81,000 | 91,000 | ||
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 650,000 | 650,000 | $ 100,000 | $ 170,000 |
Not Designated as Hedging Instrument | Foreign currency exchange contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | $ 11,250 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME63
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Balance Sheet Location) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | $ 19,944 | $ 19,320 |
Fair value, derivative liability | (5,013) | (7,240) |
Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 1,569 | 1,756 |
Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 18,375 | 17,564 |
Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (558) | (835) |
Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (4,455) | (6,405) |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 730 | 692 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency exchange contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 102 | 33 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency exchange contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (223) | (261) |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency exchange contracts | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (7) | 0 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency option contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 718 | 1,064 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency option contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 167 | 327 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency option contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (335) | (574) |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency option contracts | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (200) | (426) |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 18,106 | 17,204 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (4,248) | (5,979) |
Not Designated as Hedging Instrument | Foreign currency exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | $ 121 | $ 0 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 219,357 | $ 85,909 |
Restricted cash | 111,276 | 71,708 |
Current maturities of long-term debt | (42,926) | (31,676) |
Long-term debt | (1,028,068) | (1,030,205) |
Carrying Amount | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 13,858 | 11,225 |
Carrying Amount | Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 723 | 464 |
Carrying Amount | Foreign currency option contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 350 | 391 |
Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 219,357 | 85,909 |
Restricted cash | 111,276 | 71,708 |
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 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 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 | (43,250) | (31,984) |
Long-term debt | (1,031,648) | (1,030,708) |
Fair Value | Level 2 | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 13,858 | 11,225 |
Fair Value | Level 2 | Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 723 | 464 |
Fair Value | Level 2 | Foreign currency option contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | $ 350 | $ 391 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)pension_plan | Mar. 31, 2016USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||
Number of qualified defined benefit plans | pension_plan | 1 | |
Weighted-average expected long-term rate of return on plan assets | 7.20% | |
Pension | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 0 | $ 327 |
Interest cost | 815 | 869 |
Expected return on plan assets (a) | (945) | (1,008) |
Amortization of losses (gains) | 116 | 629 |
Net periodic benefit (gain) cost | (14) | 817 |
Postretirement | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 13 | 2 |
Interest cost | 2 | 12 |
Expected return on plan assets (a) | 0 | 0 |
Amortization of losses (gains) | 0 | (12) |
Net periodic benefit (gain) cost | $ 15 | $ 2 |
OTHER OPERATING INCOME, NET (De
OTHER OPERATING INCOME, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Other Income and Expenses [Abstract] | ||
Lease and license income, primarily from hunting | $ 4,110 | $ 4,559 |
Other non-timber income | 2,798 | 519 |
Foreign currency income (loss) | 313 | (295) |
Gain (loss) on foreign currency exchange and option contracts | 652 | (522) |
Gain on foreign currency derivatives | 0 | 1,153 |
Miscellaneous income, net | 879 | 490 |
Total | $ 8,752 | $ 5,904 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Inventory | $ 27,155 | $ 21,379 |
Real Estate Inventory | ||
Inventory [Line Items] | ||
Inventory | 19,332 | 17,059 |
Log inventory | ||
Inventory [Line Items] | ||
Inventory | $ 7,823 | $ 4,320 |
RESTRICTED CASH (Details)
RESTRICTED CASH (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | |
Restricted Cash and Investments [Abstract] | ||
Maximum time period proceeds from LKE sale maintained with third party intermediary, days | 180 days | |
Restricted deposits | $ 111.3 | $ 71.7 |
ASSETS HELD FOR SALE (Details)
ASSETS HELD FOR SALE (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Abstract] | ||
Assets held for sale | $ 9,006 | $ 23,171 |
ACCUMULATED OTHER COMPREHENSI70
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Schedule of Components) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | $ 1,411,610 | ||
Other comprehensive income before reclassifications | 4,977 | $ 32,431 | |
Amounts reclassified from accumulated other comprehensive income | (288) | (1,510) | |
Net other comprehensive income/(loss) | 4,689 | 30,921 | |
Recapitalization of New Zealand JV | 0 | ||
Ending balance | 1,560,500 | 1,411,610 | |
Foreign currency translation gains/ (losses) | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 8,559 | $ (2,450) | (2,450) |
Other comprehensive income before reclassifications | 2,002 | 7,387 | |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | |
Net other comprehensive income/(loss) | 2,002 | 7,387 | |
Recapitalization of New Zealand JV | 3,622 | ||
Ending balance | 10,561 | 8,559 | |
Net investment hedges of New Zealand JV | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 1,665 | 6,271 | 6,271 |
Other comprehensive income before reclassifications | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income | 0 | (4,606) | |
Net other comprehensive income/(loss) | 0 | (4,606) | |
Recapitalization of New Zealand JV | 0 | ||
Ending balance | 1,665 | 1,665 | |
Cash flow hedges | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 10,831 | (11,592) | (11,592) |
Other comprehensive income before reclassifications | 2,975 | 22,024 | |
Amounts reclassified from accumulated other comprehensive income | (404) | 583 | |
Net other comprehensive income/(loss) | 2,571 | 22,607 | |
Recapitalization of New Zealand JV | (184) | ||
Ending balance | 13,402 | 10,831 | |
Employee benefit plans | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (20,199) | (25,732) | (25,732) |
Other comprehensive income before reclassifications | 0 | 3,020 | |
Amounts reclassified from accumulated other comprehensive income | 116 | 2,513 | |
Net other comprehensive income/(loss) | 116 | 5,533 | |
Recapitalization of New Zealand JV | 0 | ||
Ending balance | (20,083) | (20,199) | |
Annual computation of pension liabilities gain (loss) | 2,400 | ||
Curtailment gain | 5,400 | ||
Accumulated Other Comprehensive Income/(Loss) | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 856 | (33,503) | (33,503) |
Recapitalization of New Zealand JV | 3,438 | ||
Ending balance | $ 5,545 | $ 856 | |
Interest rate swaps | Cash flow hedges | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Other comprehensive income before reclassifications | $ 2,600 |
ACCUMULATED OTHER COMPREHENSI71
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Reclassified AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other operating income, net | $ 8,752 | $ 5,904 | |
Comprehensive income (loss) attributable to noncontrolling interest | (1,651) | 3,749 | |
Income tax (expense) benefit | (6,281) | 781 | |
Net (gain) loss from accumulated other comprehensive income | (288) | $ (1,510) | |
Reclassification out of Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net (gain) loss from accumulated other comprehensive income | (404) | 413 | |
Cash flow hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net (gain) loss from accumulated other comprehensive income | (404) | $ 583 | |
Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Comprehensive income (loss) attributable to noncontrolling interest | 168 | (314) | |
Income tax (expense) benefit | 156 | (161) | |
Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Foreign currency exchange contracts | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other operating income, net | (446) | 334 | |
Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Foreign currency option contracts | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other operating income, net | $ (282) | $ 554 |
CONSOLIDATING FINANCIAL STATE72
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 STATE73
CONSOLIDATING FINANCIAL STATEMENTS (Income and Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
SALES | $ 186,512 | $ 134,843 | |
Costs and Expenses | |||
Cost of sales | 136,413 | 107,971 | |
Selling and general expenses | 9,590 | 9,779 | |
Other operating expense (income), net | (8,752) | (5,904) | |
Costs and Expenses, Total | 137,251 | 111,846 | |
OPERATING INCOME | 49,261 | 22,997 | |
Interest expense | (8,415) | (7,098) | |
Interest and miscellaneous income (expense), net | 518 | (1,622) | |
Equity in income from subsidiaries | 0 | 0 | |
INCOME BEFORE INCOME TAXES | 41,364 | 14,277 | |
Income tax (expense) benefit | (6,281) | 781 | |
NET INCOME | 35,083 | 15,058 | $ 217,770 |
Less: Net income attributable to noncontrolling interest | 1,240 | 586 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 33,843 | 14,472 | |
Foreign currency translation adjustment | 2,432 | 2,804 | 6,322 |
Cash flow hedges, net of income tax | 2,553 | (13,774) | 22,822 |
Amortization of pension and postretirement plans, net of income tax | 116 | 617 | $ 5,533 |
Total other comprehensive income (loss) | 5,101 | (10,353) | |
COMPREHENSIVE INCOME | 40,184 | 4,705 | |
Less: Comprehensive income (loss) attributable to noncontrolling interest | 1,651 | (3,749) | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | 38,533 | 8,454 | |
Consolidating Adjustments | |||
Income Statement [Abstract] | |||
SALES | 0 | 0 | |
Costs and Expenses | |||
Cost of sales | 0 | 0 | |
Selling and general expenses | 0 | 0 | |
Other operating expense (income), 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 from subsidiaries | (77,524) | (34,570) | |
INCOME BEFORE INCOME TAXES | (77,524) | (34,570) | |
Income tax (expense) benefit | 0 | 0 | |
NET INCOME | (77,524) | (34,570) | |
Less: Net income attributable to noncontrolling interest | 0 | 0 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | (77,524) | (34,570) | |
Foreign currency translation adjustment | (2,002) | (7,288) | |
Cash flow hedges, net of income tax | (2,572) | 13,923 | |
Amortization of pension and postretirement plans, net of income tax | (116) | (617) | |
Total other comprehensive income (loss) | (4,690) | 6,018 | |
COMPREHENSIVE INCOME | (82,214) | (28,552) | |
Less: Comprehensive income (loss) attributable to noncontrolling interest | 0 | 0 | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | (82,214) | (28,552) | |
Rayonier Inc. (Parent Issuer) | |||
Income Statement [Abstract] | |||
SALES | 0 | 0 | |
Costs and Expenses | |||
Cost of sales | 0 | 0 | |
Selling and general expenses | 0 | 0 | |
Other operating expense (income), net | 0 | 0 | |
Costs and Expenses, Total | 0 | 0 | |
OPERATING INCOME | 0 | 0 | |
Interest expense | (3,139) | (3,139) | |
Interest and miscellaneous income (expense), net | 2,202 | 2,038 | |
Equity in income from subsidiaries | 34,780 | 15,573 | |
INCOME BEFORE INCOME TAXES | 33,843 | 14,472 | |
Income tax (expense) benefit | 0 | 0 | |
NET INCOME | 33,843 | 14,472 | |
Less: Net income attributable to noncontrolling interest | 0 | 0 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 33,843 | 14,472 | |
Foreign currency translation adjustment | 2,002 | 7,288 | |
Cash flow hedges, net of income tax | 2,572 | (13,923) | |
Amortization of pension and postretirement plans, net of income tax | 116 | 617 | |
Total other comprehensive income (loss) | 4,690 | (6,018) | |
COMPREHENSIVE INCOME | 38,533 | 8,454 | |
Less: Comprehensive income (loss) attributable to noncontrolling interest | 0 | 0 | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | 38,533 | 8,454 | |
Subsidiary Guarantors | |||
Income Statement [Abstract] | |||
SALES | 0 | 0 | |
Costs and Expenses | |||
Cost of sales | 0 | 0 | |
Selling and general expenses | 3,536 | 2,938 | |
Other operating expense (income), net | 111 | (1,155) | |
Costs and Expenses, Total | 3,647 | 1,783 | |
OPERATING INCOME | (3,647) | (1,783) | |
Interest expense | (4,858) | (2,144) | |
Interest and miscellaneous income (expense), net | 689 | 681 | |
Equity in income from subsidiaries | 42,744 | 18,997 | |
INCOME BEFORE INCOME TAXES | 34,928 | 15,751 | |
Income tax (expense) benefit | (148) | (178) | |
NET INCOME | 34,780 | 15,573 | |
Less: Net income attributable to noncontrolling interest | 0 | 0 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 34,780 | 15,573 | |
Foreign currency translation adjustment | 0 | (4,606) | |
Cash flow hedges, net of income tax | 2,633 | (14,886) | |
Amortization of pension and postretirement plans, net of income tax | 116 | 617 | |
Total other comprehensive income (loss) | 2,749 | (18,875) | |
COMPREHENSIVE INCOME | 37,529 | (3,302) | |
Less: Comprehensive income (loss) attributable to noncontrolling interest | 0 | 0 | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | 37,529 | (3,302) | |
Non- guarantors | |||
Income Statement [Abstract] | |||
SALES | 186,512 | 134,843 | |
Costs and Expenses | |||
Cost of sales | 136,413 | 107,971 | |
Selling and general expenses | 6,054 | 6,841 | |
Other operating expense (income), net | (8,863) | (4,749) | |
Costs and Expenses, Total | 133,604 | 110,063 | |
OPERATING INCOME | 52,908 | 24,780 | |
Interest expense | (418) | (1,815) | |
Interest and miscellaneous income (expense), net | (2,373) | (4,341) | |
Equity in income from subsidiaries | 0 | 0 | |
INCOME BEFORE INCOME TAXES | 50,117 | 18,624 | |
Income tax (expense) benefit | (6,133) | 959 | |
NET INCOME | 43,984 | 19,583 | |
Less: Net income attributable to noncontrolling interest | 1,240 | 586 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 42,744 | 18,997 | |
Foreign currency translation adjustment | 2,432 | 7,410 | |
Cash flow hedges, net of income tax | (80) | 1,112 | |
Amortization of pension and postretirement plans, net of income tax | 0 | 0 | |
Total other comprehensive income (loss) | 2,352 | 8,522 | |
COMPREHENSIVE INCOME | 46,336 | 28,105 | |
Less: Comprehensive income (loss) attributable to noncontrolling interest | 1,651 | (3,749) | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | $ 44,685 | $ 31,854 |
CONSOLIDATING FINANCIAL STATE74
CONSOLIDATING FINANCIAL STATEMENTS (Balance Sheets) (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
CURRENT ASSETS | ||||
Cash and cash equivalents | $ 219,357 | $ 85,909 | $ 76,204 | $ 51,777 |
Accounts receivable, less allowance for doubtful accounts | 33,434 | 20,664 | ||
Insurance settlement receivable | 73,000 | 0 | ||
Inventory | 27,155 | 21,379 | ||
Prepaid expenses | 14,723 | 11,807 | ||
Assets held for sale | 9,006 | 23,171 | ||
Other current assets | 8,247 | 1,874 | ||
Total current assets | 384,922 | 164,804 | ||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 2,280,814 | 2,291,015 | ||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 73,713 | 70,374 | ||
NET PROPERTY, PLANT AND EQUIPMENT | 16,849 | 14,034 | ||
RESTRICTED CASH | 111,276 | 71,708 | ||
INVESTMENT IN SUBSIDIARIES | 0 | 0 | ||
INTERCOMPANY NOTES RECEIVABLE | 0 | 0 | ||
OTHER ASSETS | 51,336 | 73,825 | ||
TOTAL ASSETS | 2,918,910 | 2,685,760 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 30,956 | 22,337 | ||
Insurance settlement payable | 73,740 | 0 | ||
Current maturities of long-term debt | 42,926 | 31,676 | ||
Accrued taxes | 3,348 | 2,657 | ||
Accrued payroll and benefits | 3,079 | 9,277 | ||
Accrued interest | 8,321 | 5,340 | ||
Other current liabilities | 20,572 | 20,679 | ||
Total current liabilities | 182,942 | 91,966 | ||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 1,028,068 | 1,030,205 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 31,718 | 31,856 | ||
OTHER NON-CURRENT LIABILITIES | 28,888 | 34,981 | ||
INTERCOMPANY PAYABLE | 0 | 0 | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,560,500 | 1,411,610 | ||
Noncontrolling interest | 86,794 | 85,142 | ||
TOTAL SHAREHOLDERS’ EQUITY | 1,647,294 | 1,496,752 | 1,361,740 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,918,910 | 2,685,760 | ||
Consolidating Adjustments | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, less allowance for doubtful accounts | 0 | 0 | ||
Insurance settlement receivable | 0 | |||
Inventory | 0 | 0 | ||
Prepaid expenses | 0 | 0 | ||
Assets held for sale | 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 | ||
RESTRICTED CASH | 0 | 0 | ||
INVESTMENT IN SUBSIDIARIES | (4,150,942) | (4,093,509) | ||
INTERCOMPANY NOTES RECEIVABLE | 0 | 0 | ||
OTHER ASSETS | 0 | 0 | ||
TOTAL ASSETS | (4,150,942) | (4,093,509) | ||
CURRENT LIABILITIES | ||||
Accounts payable | 0 | 0 | ||
Insurance settlement payable | 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 | (4,150,942) | (4,093,509) | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL SHAREHOLDERS’ EQUITY | (4,150,942) | (4,093,509) | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | (4,150,942) | (4,093,509) | ||
Rayonier Inc. (Parent Issuer) | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 157,916 | 21,453 | 8,773 | 2,472 |
Accounts receivable, less allowance for doubtful accounts | 0 | 0 | ||
Insurance settlement receivable | 73,000 | |||
Inventory | 0 | 0 | ||
Prepaid expenses | 0 | 0 | ||
Assets held for sale | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 230,916 | 21,453 | ||
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 | ||
RESTRICTED CASH | 0 | 0 | ||
INVESTMENT IN SUBSIDIARIES | 1,434,995 | 1,422,081 | ||
INTERCOMPANY NOTES RECEIVABLE | 29,866 | 26,472 | ||
OTHER ASSETS | 2 | 2 | ||
TOTAL ASSETS | 1,695,779 | 1,470,008 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 0 | 0 | ||
Insurance settlement payable | 73,740 | |||
Current maturities of long-term debt | 31,601 | 31,676 | ||
Accrued taxes | 0 | 0 | ||
Accrued payroll and benefits | 0 | 0 | ||
Accrued interest | 6,094 | 3,047 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | 111,435 | 34,723 | ||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 291,557 | 291,390 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 0 | 0 | ||
OTHER NON-CURRENT LIABILITIES | 0 | 0 | ||
INTERCOMPANY PAYABLE | (267,713) | (267,715) | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,560,500 | 1,411,610 | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL SHAREHOLDERS’ EQUITY | 1,560,500 | 1,411,610 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 1,695,779 | 1,470,008 | ||
Subsidiary Guarantors | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 18,524 | 9,461 | 27,868 | 13,217 |
Accounts receivable, less allowance for doubtful accounts | 946 | 2,991 | ||
Insurance settlement receivable | 0 | |||
Inventory | 0 | 0 | ||
Prepaid expenses | 1,839 | 427 | ||
Assets held for sale | 0 | 0 | ||
Other current assets | 20 | 236 | ||
Total current assets | 21,329 | 13,115 | ||
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 | 141 | 177 | ||
RESTRICTED CASH | 0 | 0 | ||
INVESTMENT IN SUBSIDIARIES | 2,715,947 | 2,671,428 | ||
INTERCOMPANY NOTES RECEIVABLE | (615,867) | (611,571) | ||
OTHER ASSETS | 10,780 | 46,846 | ||
TOTAL ASSETS | 2,132,330 | 2,119,995 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 4,990 | 1,194 | ||
Insurance settlement payable | 0 | |||
Current maturities of long-term debt | 0 | 0 | ||
Accrued taxes | 28 | (111) | ||
Accrued payroll and benefits | 1,423 | 5,013 | ||
Accrued interest | 1,973 | 2,040 | ||
Other current liabilities | 473 | 165 | ||
Total current liabilities | 8,887 | 8,301 | ||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 663,425 | 663,343 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 32,402 | 32,541 | ||
OTHER NON-CURRENT LIABILITIES | 11,584 | 12,690 | ||
INTERCOMPANY PAYABLE | (18,963) | (18,961) | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,434,995 | 1,422,081 | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL SHAREHOLDERS’ EQUITY | 1,434,995 | 1,422,081 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,132,330 | 2,119,995 | ||
Non- guarantors | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 42,917 | 54,995 | $ 39,563 | $ 36,088 |
Accounts receivable, less allowance for doubtful accounts | 32,488 | 17,673 | ||
Insurance settlement receivable | 0 | |||
Inventory | 27,155 | 21,379 | ||
Prepaid expenses | 12,884 | 11,380 | ||
Assets held for sale | 9,006 | 23,171 | ||
Other current assets | 8,227 | 1,638 | ||
Total current assets | 132,677 | 130,236 | ||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 2,280,814 | 2,291,015 | ||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 73,713 | 70,374 | ||
NET PROPERTY, PLANT AND EQUIPMENT | 16,708 | 13,857 | ||
RESTRICTED CASH | 111,276 | 71,708 | ||
INVESTMENT IN SUBSIDIARIES | 0 | 0 | ||
INTERCOMPANY NOTES RECEIVABLE | 586,001 | 585,099 | ||
OTHER ASSETS | 40,554 | 26,977 | ||
TOTAL ASSETS | 3,241,743 | 3,189,266 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 25,966 | 21,143 | ||
Insurance settlement payable | 0 | |||
Current maturities of long-term debt | 11,325 | 0 | ||
Accrued taxes | 3,320 | 2,768 | ||
Accrued payroll and benefits | 1,656 | 4,264 | ||
Accrued interest | 254 | 253 | ||
Other current liabilities | 20,099 | 20,514 | ||
Total current liabilities | 62,620 | 48,942 | ||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 73,086 | 75,472 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | (684) | (685) | ||
OTHER NON-CURRENT LIABILITIES | 17,304 | 22,291 | ||
INTERCOMPANY PAYABLE | 286,676 | 286,676 | ||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 2,715,947 | 2,671,428 | ||
Noncontrolling interest | 86,794 | 85,142 | ||
TOTAL SHAREHOLDERS’ EQUITY | 2,802,741 | 2,756,570 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 3,241,743 | $ 3,189,266 |
CONSOLIDATING FINANCIAL STATE75
CONSOLIDATING FINANCIAL STATEMENTS (Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Cash Flows [Abstract] | ||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | $ 33,943 | $ 31,035 |
INVESTING ACTIVITIES | ||
Capital expenditures | (14,362) | (13,298) |
Real estate development costs | (2,185) | (1,685) |
Purchase of timberlands | (11,293) | (14,323) |
Net proceeds from large disposition | 42,034 | 0 |
Rayonier office building under construction | (2,604) | (186) |
Change in restricted cash | (39,568) | 10,613 |
Investment in Subsidiaries | 0 | 0 |
Other | (5,617) | (1,404) |
CASH USED FOR INVESTING ACTIVITIES | (33,595) | (20,283) |
FINANCING ACTIVITIES | ||
Issuance of debt | 29,719 | 285,552 |
Repayment of debt | (20,530) | (240,752) |
Dividends paid | (30,618) | (30,675) |
Proceeds from the issuance of common shares under incentive stock plan | 2,251 | 18 |
Issuance of shares under equity offering | 152,345 | 0 |
Repurchase of common shares | 0 | (690) |
Intercompany distributions | 0 | 0 |
Other | 0 | (16) |
CASH PROVIDED BY FINANCING ACTIVITIES | 133,167 | 13,437 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (67) | 238 |
CASH AND CASH EQUIVALENTS | ||
Change in cash and cash equivalents | 133,448 | 24,427 |
Balance, beginning of year | 85,909 | 51,777 |
Balance, end of period | 219,357 | 76,204 |
Consolidating Adjustments | ||
Statement of Cash Flows [Abstract] | ||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | 0 | 0 |
INVESTING ACTIVITIES | ||
Capital expenditures | 0 | 0 |
Real estate development costs | 0 | 0 |
Purchase of timberlands | 0 | 0 |
Net proceeds from large disposition | 0 | |
Rayonier office building under construction | 0 | 0 |
Change in restricted cash | 0 | 0 |
Investment in Subsidiaries | (2,636) | (1,136) |
Other | 0 | 0 |
CASH USED FOR INVESTING ACTIVITIES | (2,636) | (1,136) |
FINANCING ACTIVITIES | ||
Issuance of debt | 0 | 0 |
Repayment of debt | 0 | 0 |
Dividends paid | 0 | 0 |
Proceeds from the issuance of common shares under incentive stock plan | 0 | 0 |
Issuance of shares under equity offering | 0 | |
Repurchase of common shares | 0 | |
Intercompany distributions | 2,636 | 1,136 |
Other | 0 | |
CASH PROVIDED BY FINANCING ACTIVITIES | 2,636 | 1,136 |
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 | (1,192) | 2,332 |
INVESTING ACTIVITIES | ||
Capital expenditures | 0 | 0 |
Real estate development costs | 0 | 0 |
Purchase of timberlands | 0 | 0 |
Net proceeds from large disposition | 0 | |
Rayonier office building under construction | 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 | (30,618) | (30,675) |
Proceeds from the issuance of common shares under incentive stock plan | 2,251 | 18 |
Issuance of shares under equity offering | 152,345 | |
Repurchase of common shares | (690) | |
Intercompany distributions | 13,677 | 35,332 |
Other | (16) | |
CASH PROVIDED BY FINANCING ACTIVITIES | 137,655 | 3,969 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 0 | 0 |
CASH AND CASH EQUIVALENTS | ||
Change in cash and cash equivalents | 136,463 | 6,301 |
Balance, beginning of year | 21,453 | 2,472 |
Balance, end of period | 157,916 | 8,773 |
Subsidiary Guarantors | ||
Statement of Cash Flows [Abstract] | ||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | 36,931 | (3,624) |
INVESTING ACTIVITIES | ||
Capital expenditures | 0 | 0 |
Real estate development costs | 0 | 0 |
Purchase of timberlands | 0 | 0 |
Net proceeds from large disposition | 0 | |
Rayonier office building under construction | 0 | 0 |
Change in restricted cash | 0 | 0 |
Investment in Subsidiaries | 2,636 | 1,136 |
Other | 0 | 0 |
CASH USED FOR INVESTING ACTIVITIES | 2,636 | 1,136 |
FINANCING ACTIVITIES | ||
Issuance of debt | 15,000 | 213,000 |
Repayment of debt | (15,000) | (25,000) |
Dividends paid | 0 | 0 |
Proceeds from the issuance of common shares under incentive stock plan | 0 | 0 |
Issuance of shares under equity offering | 0 | |
Repurchase of common shares | 0 | |
Intercompany distributions | (30,504) | (170,861) |
Other | 0 | |
CASH PROVIDED BY FINANCING ACTIVITIES | (30,504) | 17,139 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 0 | 0 |
CASH AND CASH EQUIVALENTS | ||
Change in cash and cash equivalents | 9,063 | 14,651 |
Balance, beginning of year | 9,461 | 13,217 |
Balance, end of period | 18,524 | 27,868 |
Non- guarantors | ||
Statement of Cash Flows [Abstract] | ||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | (1,796) | 32,327 |
INVESTING ACTIVITIES | ||
Capital expenditures | (14,362) | (13,298) |
Real estate development costs | (2,185) | (1,685) |
Purchase of timberlands | (11,293) | (14,323) |
Net proceeds from large disposition | 42,034 | |
Rayonier office building under construction | (2,604) | (186) |
Change in restricted cash | (39,568) | 10,613 |
Investment in Subsidiaries | 0 | 0 |
Other | (5,617) | (1,404) |
CASH USED FOR INVESTING ACTIVITIES | (33,595) | (20,283) |
FINANCING ACTIVITIES | ||
Issuance of debt | 14,719 | 72,552 |
Repayment of debt | (5,530) | (215,752) |
Dividends paid | 0 | 0 |
Proceeds from the issuance of common shares under incentive stock plan | 0 | 0 |
Issuance of shares under equity offering | 0 | |
Repurchase of common shares | 0 | |
Intercompany distributions | 14,191 | 134,393 |
Other | 0 | |
CASH PROVIDED BY FINANCING ACTIVITIES | 23,380 | (8,807) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (67) | 238 |
CASH AND CASH EQUIVALENTS | ||
Change in cash and cash equivalents | (12,078) | 3,475 |
Balance, beginning of year | 54,995 | 36,088 |
Balance, end of period | $ 42,917 | $ 39,563 |