Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | Apr. 27, 2018 | |
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, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 129,392,968 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
SALES | $ 203,196 | $ 194,491 | |
Costs and Expenses | |||
Cost of sales | 138,488 | 136,828 | |
Selling and general expenses | 9,003 | 9,590 | |
Other operating income, net (Note 15) | (1,369) | (1,188) | |
Costs and Expenses, Total | 146,122 | 145,230 | |
OPERATING INCOME | 57,074 | 49,261 | |
Interest expense | (8,052) | (8,415) | |
Interest and other miscellaneous income, net | 620 | 518 | |
INCOME BEFORE INCOME TAXES | 49,642 | 41,364 | |
Income tax expense (Note 8) | (6,936) | (6,281) | |
NET INCOME | 42,706 | 35,083 | $ 161,579 |
Less: Net income attributable to noncontrolling interest | 2,167 | 1,240 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 40,539 | 33,843 | |
OTHER COMPREHENSIVE INCOME | |||
Foreign currency translation adjustment, net of income tax expense of $0 and $0 | 9,688 | 2,432 | 9,114 |
Cash flow hedges, net of income tax benefit (expense) of $368 and ($32) | 16,615 | 2,553 | 5,693 |
Amortization of pension and postretirement plans, net of income tax expense of $0 and $0 | 159 | 116 | $ (208) |
Total other comprehensive income | 26,462 | 5,101 | |
COMPREHENSIVE INCOME | 69,168 | 40,184 | |
Less: Comprehensive income attributable to noncontrolling interest | 4,483 | 1,651 | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | $ 64,685 | $ 38,533 | |
EARNINGS PER COMMON SHARE (Note 11) | |||
Basic earnings per share attributable to Rayonier Inc. (in dollars per share) | $ 0.31 | $ 0.27 | |
Diluted earnings per share attributable to Rayonier Inc. (in dollars per share) | 0.31 | 0.27 | |
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, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustment, tax expense | $ 0 | $ 0 |
Cash flow hedges, income tax (expense) benefit | 368 | (32) |
Amortization of pension and postretirement plans, tax expense | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 92,785,000 | $ 112,653,000 |
Accounts receivable, less allowance for doubtful accounts of $23 and $23 | 37,793,000 | 27,693,000 |
Inventory (Note 16) | 19,993,000 | 24,141,000 |
Prepaid expenses | 16,436,000 | 15,993,000 |
Assets held for sale (Note 18) | 24,552,000 | 0 |
Other current assets | 4,935,000 | 3,047,000 |
Total current assets | 196,494,000 | 183,527,000 |
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 2,424,675,000 | 2,462,066,000 |
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (NOTE 6) | 87,702,000 | 80,797,000 |
PROPERTY, PLANT AND EQUIPMENT | ||
Land | 3,962,000 | 3,962,000 |
Buildings | 24,236,000 | 23,618,000 |
Machinery and equipment | 4,416,000 | 4,440,000 |
Construction in progress | 237,000 | 627,000 |
Total property, plant and equipment, gross | 32,851,000 | 32,647,000 |
Less — accumulated depreciation | (9,675,000) | (9,269,000) |
Total property, plant and equipment, net | 23,176,000 | 23,378,000 |
Total restricted cash shown in the Consolidated Balance Sheets | 84,903,000 | 59,703,000 |
OTHER ASSETS | 61,422,000 | 49,010,000 |
TOTAL ASSETS | 2,878,372,000 | 2,858,481,000 |
CURRENT LIABILITIES | ||
Accounts payable | 27,082,000 | 25,148,000 |
Current maturities of long-term debt (Note 5) | 0 | 3,375,000 |
Accrued taxes | 3,583,000 | 3,781,000 |
Accrued payroll and benefits | 3,760,000 | 9,662,000 |
Accrued interest | 8,100,000 | 5,054,000 |
Deferred revenue | 7,901,000 | 9,721,000 |
Other current liabilities | 15,091,000 | 11,807,000 |
Total current liabilities | 65,517,000 | 68,548,000 |
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS (NOTE 5) | 996,145,000 | 1,022,004,000 |
PENSION AND OTHER POSTRETIREMENT BENEFITS (NOTE 14) | 31,137,000 | 31,905,000 |
OTHER NON-CURRENT LIABILITIES | 49,400,000 | 43,084,000 |
COMMITMENTS AND CONTINGENCIES (NOTES 7 and 9) | ||
SHAREHOLDERS’ EQUITY | ||
Common Shares, 480,000,000 shares authorized, 129,174,301 and 128,970,776 shares issued and outstanding | 878,927,000 | 872,228,000 |
Retained earnings | 715,283,000 | 707,378,000 |
Accumulated other comprehensive income (Note 19) | 37,563,000 | 13,417,000 |
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,631,773,000 | 1,593,023,000 |
Noncontrolling interest | 104,400,000 | 99,917,000 |
TOTAL SHAREHOLDERS’ EQUITY | 1,736,173,000 | 1,692,940,000 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 2,878,372,000 | $ 2,858,481,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Current Assets: | ||
Allowance for doubtful accounts | $ 23 | $ 23 |
Shareholders’ Equity: | ||
Common shares, shares authorized (in shares) | 480,000,000 | 480,000,000 |
Common shares, shares issued (in shares) | 129,174,301 | 128,970,776 |
Common shares, shares outstanding (in shares) | 129,174,301 | 128,970,776 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Shares | Retained Earnings | Accumulated Other Comprehensive Income | Non-controlling Interest |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative-effect adjustment due to adoption of ASU No. 2016-16 | Accounting Standards Update 2016-16 | $ (14,365) | $ (14,365) | |||
Beginning balance (in shares) at Dec. 31, 2016 | 122,904,368 | ||||
Beginning balance at Dec. 31, 2016 | 1,496,752 | $ 709,867 | 700,887 | $ 856 | $ 85,142 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 161,579 | 148,842 | 12,737 | ||
Dividends ($1.00 and $0.25 per share, respectively) | (127,986) | (127,986) | |||
Issuance of shares under incentive stock plans (in shares) | 322,314 | ||||
Issuance of shares under incentive stock plans | 4,751 | $ 4,751 | |||
Stock-based compensation | 5,396 | $ 5,396 | |||
Repurchase of common shares (in shares) | (5,906) | ||||
Repurchase of common shares | (176) | $ (176) | 0 | ||
Actuarial change and amortization of pension and postretirement plan liabilities | (208) | (208) | |||
Foreign currency translation adjustment | 9,114 | 7,416 | 1,698 | ||
Cash flow hedges | 5,693 | 5,353 | 340 | ||
Issuance of shares under equity offering, net of costs (in shares) | 5,750,000 | ||||
Issuance of shares under equity offering, net of costs | 152,390 | $ 152,390 | |||
Ending balance (in shares) at Dec. 31, 2017 | 128,970,776 | ||||
Ending balance at Dec. 31, 2017 | 1,692,940 | $ 872,228 | 707,378 | 13,417 | 99,917 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 42,706 | 40,539 | 2,167 | ||
Dividends ($1.00 and $0.25 per share, respectively) | (32,634) | (32,634) | |||
Issuance of shares under incentive stock plans (in shares) | 204,336 | ||||
Issuance of shares under incentive stock plans | 5,455 | $ 5,455 | |||
Stock-based compensation | 1,262 | $ 1,262 | |||
Repurchase of common shares (in shares) | (811) | ||||
Repurchase of common shares | (18) | $ (18) | 0 | ||
Actuarial change and amortization of pension and postretirement plan liabilities | 159 | 159 | |||
Foreign currency translation adjustment | 9,688 | 7,606 | 2,082 | ||
Cash flow hedges | 16,615 | 16,381 | 234 | ||
Ending balance (in shares) at Mar. 31, 2018 | 129,174,301 | ||||
Ending balance at Mar. 31, 2018 | $ 1,736,173 | $ 878,927 | $ 715,283 | $ 37,563 | $ 104,400 |
CONSOLIDATED STATEMENTS OF SHA7
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
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, 2018 | Mar. 31, 2017 | ||
OPERATING ACTIVITIES | |||
Net income | $ 42,706 | $ 35,083 | |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation, depletion and amortization | 34,537 | 30,773 | |
Non-cash cost of land and improved development | 1,624 | 4,479 | |
Stock-based incentive compensation expense | 1,262 | 880 | |
Deferred income taxes | 6,982 | 5,989 | |
Amortization of losses from pension and postretirement plans | 159 | 116 | |
Gain on sale of large disposition of timberlands | 0 | 28,188 | |
Other | 6,271 | 2,306 | |
Changes in operating assets and liabilities: | |||
Receivables | (10,473) | (11,442) | |
Inventories | (1,268) | (3,481) | |
Accounts payable | 3,921 | 5,886 | |
Income tax receivable/payable | (290) | (126) | |
All other operating activities | (7,196) | (8,332) | |
CASH PROVIDED BY OPERATING ACTIVITIES | 78,235 | 33,943 | |
INVESTING ACTIVITIES | |||
Capital expenditures | (13,192) | (14,362) | |
Real estate development investments | (2,340) | (2,185) | |
Purchase of timberlands | (12) | (11,293) | |
Net proceeds from large disposition of timberlands | 0 | 42,034 | |
Rayonier office building under construction | 0 | (2,604) | |
Other | (2,105) | (5,617) | |
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES | (17,649) | 5,973 | |
FINANCING ACTIVITIES | |||
Issuance of debt | 0 | 29,719 | |
Repayment of debt | (29,375) | (20,530) | |
Dividends paid | (32,123) | (30,618) | |
Proceeds from the issuance of common shares under incentive stock plan | 5,455 | 2,251 | |
Proceeds from the issuance of common shares from equity offering, net of costs | 0 | 152,345 | |
Repurchase of common shares | (18) | 0 | |
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES | (56,061) | 133,167 | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 807 | (67) | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||
Change in cash and cash equivalents | [1] | 5,332 | 173,016 |
Balance, beginning of year | [1] | 172,356 | 157,617 |
Balance, end of period | [1] | 177,688 | 330,633 |
Cash paid during the period: | |||
Interest | [2] | 2,585 | 3,695 |
Income taxes | 281 | 214 | |
Non-cash investing activity: | |||
Capital assets purchased on account | $ 1,525 | $ 5,430 | |
[1] | Due to the adoption of ASU No. 2016-18, restricted cash is now included with cash and cash equivalents when reconciling the beginning-of-year and end-of-period total amounts shown and therefore changes in restricted cash are no longer reported as investing activities. Prior period amounts have been restated to conform to current period presentation. For additional information and a reconciliation of cash, see | ||
[2] | Interest paid is presented net of patronage payments received of $3.7 million and $3.0 million for the three months ended March 31, 2018 and March 31, 2017, respectively. For additional information on patronage payments, see Note 5 — Debt in the 2017 Form 10-K. |
CONSOLIDATED STATEMENTS OF CAS9
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Cash Flows [Abstract] | ||
Patronage refunds received, netted with interest paid | $ 3.7 | $ 3 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2018 | |
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”). The year-end balance sheet information was derived from audited financial statements not included herein. In the opinion of management, these financial statements and notes reflect any 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, 2017 , as filed with the SEC (the “2017 Form 10-K”). SUMMARY OF UPDATES TO SIGNIFICANT ACCOUNTING POLICIES REVENUE See Note 2 — Revenue for significant accounting policies related to revenue that were revised upon adoption of Accounting Standards Codification (“ASC”) 606. COST OF SALES Cost of sales associated with real estate sold includes the cost of the land, the cost of any timber on the property that was conveyed to the buyer, any real estate development costs and any closing costs including sales commissions that may be borne by the Company. As allowed under GAAP, the Company expenses closing costs, including sales commissions, when incurred for all real estate sales with future performance obligations expected to be satisfied within one year. When developed residential or commercial land is sold, the cost of sales includes actual costs incurred and estimates of future development costs benefiting the property sold through completion. Costs are allocated to each sold unit or lot based upon the relative sales value. For purposes of allocating development costs, estimates of future revenues and development costs are re-evaluated periodically throughout the year, with adjustments being allocated prospectively to the remaining units available for sale. For a full description of our significant accounting policies, see Note 2 — Summary of Significant Accounting Policies in the 2017 Form 10-K. RECENTLY ADOPTED STANDARDS The Company adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers ( Topic 606 ), on January 1, 2018. The Company elected to use the modified retrospective method to contracts that were not completed at the date of adoption. The Company also elected not to retrospectively restate contracts modified prior to January 1, 2018. A cumulative effect of adoption adjustment to the opening balance of retained earnings was not recorded as there was no accounting impact to any contracts with customers not completed at the date of adoption. See Note 2 — Revenue for additional information. In March 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which requires that an employer report the service cost component of net periodic benefit cost in the Consolidated Statements of Income in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. Additionally, the other components of net periodic benefit cost (interest cost, expected return on plan assets and amortization of losses or gains) are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. ASU No. 2017-07 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, and is required to be applied retrospectively to all periods presented beginning in the period of adoption. Rayonier adopted ASU No. 2017-07 during the first quarter ended March 31, 2018 and applied the update retrospectively to all periods presented. See Note 14 — Employee Benefit Plans for the components of net periodic benefit cost and the location of these items in the Consolidated Statements of Income and Comprehensive Income. 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 Consolidated Statements of Cash Flows. ASU No. 2016-18 is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. ASU No. 2016-18 is required to be applied retrospectively to all periods presented beginning in the period of adoption. Rayonier adopted ASU No. 2016-18 in the first quarter ended March 31, 2018 and applied the update retrospectively to all periods presented. Restricted cash is now included with cash and cash equivalents when reconciling the beginning-of-year and end-of-period total amounts shown on the Consolidated Statements of Cash Flows and therefore changes in restricted cash are no longer reported as cash flow activities. See Note 17 — Restricted Cash for additional information, including the nature of restrictions on the Company’s cash, cash equivalents, and restricted cash. Rayonier adopted ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Receipts and Cash Payments in the first quarter ended March 31, 2018 with no material impact on the consolidated financial statements. NEW ACCOUNTING STANDARDS In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which currently 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. In January 2018, the FASB issued Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842. This update provides an optional transition practical expedient not to evaluate under ASU No. 2016-02 existing or expired land easements that were not previously accounted for as leases under the current leases guidance. An entity that elects this practical expedient should evaluate new or modified land easements under ASU No. 2016-02, once adopted. An entity that does not elect this practical expedient should evaluate all existing or expired land easements in connection with the adoption of ASU No. 2016-02 to assess whether they meet the definition of a lease. This standard is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and is required to be applied on a modified retrospective basis beginning at the earliest period presented. Early adoption is permitted. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which will make more financial and non-financial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess effectiveness. It is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. ASU No. 2017-12 is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted and the amended presentation and disclosure guidance is required to be applied on a prospective basis. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02 , Income Statement—Reporting Compr ehensive Income ( Topic 220 ) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act. The amendments in this update also require certain disclosures about stranded tax effects. ASU No. 2018-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. ASU No. 2018-02 is required to be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. Early adoption is permitted in any interim period for which financial statements have not yet been issued. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-03 , Technical Corrections and Improvements to Financial Instruments —Overall (Subtopic 825-10), to clarify certain provisions of ASU No. 2016-01 and amend other provisions. ASU No. 2018-03 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years beginning after June 15, 2018. Early adoption is permitted for entities that have adopted ASU 2016-01. The Company early adopted ASU 2016-01 during the fourth quarter ended December 31, 2017 and is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. SUBSEQUENT EVENTS The Company has evaluated events occurring from March 31, 2018 to the date of issuance of these Consolidated Financial Statements for potential recognition or disclosure in the consolidated financial statements. No events were identified that warranted recognition. See Note 9 — Contingencies for events that warranted disclosure. |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE ADOPTION OF ASC 606 For information on the adoption of ASC 606, including changes to significant accounting policies and required transition disclosures, see Note 1 — Basis of Presentation . REVENUE RECOGNITION The Company recognizes revenues when control of promised goods or services (“performance obligations”) is transferred to customers, in an amount that reflects the consideration expected to be entitled to in exchange for those goods or services (“transaction price”). The Company generally satisfies performance obligations within a year of entering into a contract and therefore has applied the disclosure exemption found under ASC 606-10-50-14. Unsatisfied performance obligations as of March 31, 2018 are primarily due to advances on stumpage contracts and unearned license revenue. These performance obligations are expected to be satisfied within the next twelve months. The Company generally collects payment within a year of satisfying performance obligations and therefore has elected not to adjust revenues for a financing component. The following table presents our revenue from contracts with customers disaggregated by product type for the three months ended March 31, 2018 and 2017 : Three Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Elim. Total March 31, 2018 Pulpwood $21,606 $3,419 $5,844 — $4,257 — $35,126 Sawtimber 15,937 27,068 44,745 — 34,826 — 122,576 Hardwood 597 — — — — — 597 Total Timber Sales 38,140 30,487 50,589 — 39,083 — 158,299 License Revenue, Primarily From Hunting 4,084 25 52 — — — 4,161 Other Non-Timber/Carbon Revenue 1,195 805 2,323 — — — 4,323 Agency Fee Income — — — — 123 — 123 Total Non-Timber Sales 5,279 830 2,375 — 123 — 8,607 Improved Development — — — 1,121 — — 1,121 Unimproved Development — — — 7,446 — — 7,446 Rural — — — 1,652 — — 1,652 Non-strategic / Timberlands — — — 25,845 — — 25,845 Large Dispositions — — — — — — — Total Real Estate Sales — — — 36,064 — — 36,064 Revenue from Contracts with Customers 43,419 31,317 52,964 36,064 39,206 — 202,970 Other Non-Timber Sales, Primarily Lease 169 57 — — — — 226 Intersegment — — — — 6 (6 ) — Total Revenue $43,588 $31,374 $52,964 $36,064 $39,212 ($6 ) $203,196 March 31, 2017 Pulpwood $18,976 $3,359 $5,161 — $2,837 — $30,333 Sawtimber 13,023 21,433 35,579 — 31,140 — 101,175 Hardwood 716 — — — — — 716 Total Timber Sales 32,715 24,792 40,740 — 33,977 — 132,224 License Revenue, Primarily from Hunting 3,830 97 46 — — — 3,973 Other Non-Timber Revenue 2,390 946 88 — — — 3,424 Agency Fee Income — — — — 288 — 288 Total Non-Timber Sales 6,220 1,043 134 — 288 — 7,685 Improved Development — — — — — — — Unimproved Development — — — — — — — Rural — — — 6,739 — — 6,739 Non-strategic / Timberlands — — — 5,599 — — 5,599 Large Dispositions — — — 41,951 — — 41,951 Total Real Estate Sales — — — 54,289 — — $54,289 Revenue from Contracts with Customers 38,935 25,835 40,874 54,289 34,265 — 194,198 Other Non-Timber Sales, Primarily Lease 203 90 — — — — 293 Total Revenue $39,138 $25,925 $40,874 $54,289 $34,265 — $194,491 REVENUE RECOGNITION FOR TIMBER SALES AND NON-TIMBER INCOME Revenue from the sale of timber is recognized when control passes to the buyer. The Company utilizes two primary methods or sales channels for the sale of timber, a stumpage or standing timber model and a delivered log model. The sales method the Company employs depends upon local market conditions and which method management believes will provide the best overall margins. Under the stumpage model, standing timber is sold primarily under pay-as-cut contracts, with specified duration (typically one year or less) and fixed prices, whereby revenue is recognized as timber is severed and the sales volume is determined. The Company also sells stumpage under lump-sum contracts for specified parcels where the Company receives cash for the full agreed value of the timber prior to harvest and control passes to the buyer upon signing the contract. The Company retains interest in the land, slash products, and the use of the land for recreational and other purposes. Any uncut timber remaining at the end of the contract period reverts to the Company. Revenue is recognized for lump-sum timber sales when payment is received, the contract is signed and control passes to the buyer. A third type of stumpage sale the Company utilizes is an agreed-volume sale, whereby revenue is recognized using the output method, as periodic physical observations are made of the percentage of acreage harvested. Under the delivered log model, the Company hires third-party loggers and haulers to harvest timber and deliver it to a buyer. Sales of domestic logs generally do not require an initial payment and are made to third-party customers on open credit terms. Sales of export logs generally require a letter of credit from an approved bank. Revenue is recognized when the logs are delivered and control has passed to the buyer. For domestic log sales, control is considered passed to the buyer as the logs are delivered to the customer’s facility. For export log sales (primarily in New Zealand), control is considered passed to the buyer upon delivery onto the export vessel. Non-timber income is primarily comprised of hunting and recreational licenses. Such income and any related cost are recognized ratably over the term of the agreement and included in “Sales” and “Cost of sales”, respectively. Payment is generally due upon contract execution. The following table summarizes revenue recognition and general payment terms for timber sales: Contract Type Performance Obligation Timing of Revenue Recognition General Payment Terms Stumpage Pay-as-Cut Right to harvest a unit (i.e. ton, MBF, JAS m3) of standing timber As timber is severed (point-in-time) Initial payment between Stumpage Lump Sum Right to harvest an agreed upon volume of standing timber Contract execution (point-in-time) Full payment due upon contract execution Stumpage Agreed Volume Right to harvest an agreed upon acreage of standing timber As timber is severed (over-time) Payments made throughout contract term at the earlier of a specified harvest percentage or time elapsed Delivered Wood (Domestic) Delivery of a unit (i.e. ton, MBF, JAS m3) of timber to customer’s facility Upon delivery to customer’s facility (point-in-time) No initial payment and on open credit terms; collection generally within 30 days of invoice Delivered Wood (Export) Delivery of a unit (i.e. ton, MBF, JAS m3) onto export vessel Upon delivery onto export vessel (point-in-time) Letter of credit from an approved bank; collection generally within 30 days of delivery The following table presents our timber sales disaggregated by contract type for the three months ended March 31, 2018 and 2017 : Three Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Trading Total March 31, 2018 Stumpage Pay-as-Cut $22,511 — — — $22,511 Stumpage Lump Sum 1,818 5,106 — — 6,924 Stumpage Agreed Volume — — — — — Total Stumpage 24,329 5,106 — — 29,435 Delivered Wood (Domestic) 13,377 25,381 20,103 937 59,798 Delivered Wood (Export) 434 — 30,486 38,146 69,066 Total Delivered 13,811 25,381 50,589 39,083 128,864 Total Timber Sales $38,140 $30,487 $50,589 $39,083 $158,299 March 31, 2017 Stumpage Pay-as-Cut $20,102 — — — $20,102 Stumpage Lump Sum 2,797 2,580 — — 5,377 Stumpage Agreed Volume — 1,180 — — 1,180 Total Stumpage 22,899 3,760 — — 26,659 Delivered Wood (Domestic) 9,816 21,032 18,845 1,007 50,700 Delivered Wood (Export) — — 21,895 32,970 54,865 Total Delivered 9,816 21,032 40,740 33,977 105,565 Total Timber Sales $32,715 $24,792 $40,740 $33,977 $132,224 REVENUE RECOGNITION FOR REAL ESTATE SALES The Company recognizes revenue on sales of real estate generally at the point in time when cash has been received, the sale has closed, and control has passed to the buyer. A deposit of 5% is generally required at the time a purchase and sale agreement is executed, with the balance due at closing. On sales of real estate containing future performance obligations, revenue is recognized using the input method based on costs incurred to date relative to the total costs expected to fulfill the performance obligations in the contract with the customer. REVENUE RECOGNITION FOR LOG TRADING Log trading revenue is generally recognized when procured logs are delivered to the buyer and control has passed. For domestic log trading, control is considered passed to the buyer as the logs are delivered to the customer’s facility. For export log trading control is considered passed to the buyer upon delivery onto the export vessel. The Trading segment also includes sales from log agency contracts, whereby the Company acts as an agent managing export services on behalf of third parties. Revenue for log agency fees are recognized net of related costs. Contract Balances The timing of revenue recognition, invoicing and cash collections results in accounts receivable and deferred revenue (contract liabilities) on the Consolidated Balance Sheets. Accounts receivable are recorded when the Company has an unconditional right to consideration for completed performance under the contract. Contract liabilities relate to payments received in advance of performance under the contract. Contract liabilities are recognized as revenue as (or when) the Company performs under the contract. Revenue recognized for the three months ended March 31, 2018 , and March 31, 2017 , that was included in the contract liability balance at the beginning of each year was $6.4 million and $4.8 million , respectively. This revenue was primarily from hunting licenses and the use of advances on pay-as-cut timber sales. |
JOINT VENTURE INVESTMENT
JOINT VENTURE INVESTMENT | 3 Months Ended |
Mar. 31, 2018 | |
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 410,000 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 Changes in 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, 2018 | |
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. Sales between operating segments are made based on estimated fair market value, and intercompany sales, purchases and profits (losses) are eliminated in consolidation. 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 expense, interest and other miscellaneous income and income tax expense, 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, 2018 and 2017 : Three Months Ended March 31, SALES 2018 2017 Southern Timber $43,588 $39,138 Pacific Northwest Timber 31,374 25,925 New Zealand Timber 52,964 40,874 Real Estate (a) 36,064 54,289 Trading 39,212 34,265 Intersegment Eliminations (6 ) — Total $203,196 $194,491 (a) The three months ended March 31, 2017 includes $42.0 million of Large Dispositions. Three Months Ended March 31, OPERATING INCOME (LOSS) 2018 2017 Southern Timber $12,227 $13,939 Pacific Northwest Timber 4,674 (878 ) New Zealand Timber 15,957 10,243 Real Estate (a) 28,054 29,665 Trading 149 1,097 Corporate and other (3,987 ) (4,805 ) Total Operating Income 57,074 49,261 Unallocated interest expense and other (7,432 ) (7,897 ) Total Income before Income Taxes $49,642 $41,364 (a) The three months ended March 31, 2017 includes $28.2 million of Large Dispositions. Three Months Ended March 31, DEPRECIATION, DEPLETION AND AMORTIZATION 2018 2017 Southern Timber $15,979 $12,452 Pacific Northwest Timber 9,504 10,210 New Zealand Timber 5,717 5,407 Real Estate (a) 3,066 10,707 Trading — — Corporate and other 271 100 Total $34,537 $38,876 (a) The three months ended March 31, 2017 includes $8.1 million from Large Dispositions. Three Months Ended March 31, NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT 2018 2017 Southern Timber — — Pacific Northwest Timber — — New Zealand Timber — — Real Estate (a) 1,624 10,222 Trading — — Total $1,624 $10,222 (a) The three months ended March 31, 2017 includes $5.7 million from Large Dispositions. |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Rayonier’s debt consisted of the following at March 31, 2018 : March 31, 2018 Term Credit Agreement borrowings due 2024 at a variable interest rate of 3.3% at March 31, 2018 (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 3.6% at March 31, 2018 (b) 300,000 Revolving Credit Facility borrowings due 2020 at an average variable interest rate of 3.1% at March 31, 2018 24,000 Total debt 999,000 Less: Deferred financing costs (2,855 ) Long-term debt, net of deferred financing costs $996,145 (a) As of March 31, 2018, 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, 2018, 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: 2018 — 2019 — 2020 24,000 2021 — 2022 325,000 Thereafter 650,000 Total Debt $999,000 2018 DEBT ACTIVITY During the three months ended March 31, 2018, the Company made a repayment of $26.0 million on the Revolving Credit Facility. As of March 31, 2018 , the Company had available borrowings of $165.6 million under the Revolving Credit Facility, net of $10.4 million to secure its outstanding letters of credit. In addition, the New Zealand JV fully repaid its shareholder loan held by the noncontrolling interest party during the three months ended March 31, 2018 . 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 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, 2018 , 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, 2018 | |
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 investments from December 31, 2017 to March 31, 2018 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, 2017 $59,653 $21,144 $80,797 Plus: Current portion (a) 6,702 11,648 18,350 Total Balance at December 31, 2017 66,355 32,792 99,147 Non-cash cost of land and improved development (486 ) (999 ) (1,485 ) Timber depletion from harvesting activities and basis of timber sold in real estate sales (258 ) — (258 ) Capitalized real estate development investments (b) — 2,340 2,340 Intersegment transfers 773 — 773 Total Balance at March 31, 2018 66,384 34,133 100,517 Less: Current portion (a) (3,828 ) (8,987 ) (12,815 ) Non-current portion at March 31, 2018 $62,556 $25,146 $87,702 (a) The current portion of Higher and Better Use Timberlands and Real Estate Development Investments is recorded in Inventory. See Note 16 — Inventory for additional information. (b) Capitalized real estate development investments include $0.2 million of capitalized interest. |
COMMITMENTS
COMMITMENTS | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 , 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 2018 $878 $7,415 $6,996 $15,289 2019 947 9,389 4,279 14,615 2020 755 9,124 3,982 13,861 2021 636 8,947 1,877 11,460 2022 629 8,894 1,539 11,062 Thereafter (c) 703 157,168 1,507 159,378 $4,548 $200,937 $20,180 $225,665 (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 $ 2.4 million of pension contribution requirements remaining in 2018 based on actuarially determined estimates and IRS minimum funding requirements, payments expected to be made on derivative financial instruments (foreign exchange contracts and interest rate swaps), construction of the Company’s Wildlight development project and other purchase obligations. For additional information on the pension contribution see Note 15 — Employee Benefit Plans in the 2017 Form 10-K. (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, 2018 , the New Zealand JV has three CFL’s under termination notice that are currently being relinquished as harvest activities are concluding, 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, 2018 | |
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, 2018 , the Company recorded income tax expense of $6.9 million . For the three months ended March 31, 2017 , the Company recorded income tax expense of $6.3 million . PROVISION FOR INCOME TAXES The Company’s effective tax rate is below the 21.0% U.S. statutory rate due to tax benefits associated with being a REIT. The Company’s annualized effective tax rate (“AETR”) as of March 31, 2018 and March 31, 2017 was 13.9% and 15.6% , respectively. The increase in income tax expense and the decrease in AETR for the three months ended March 31, 2018 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, 2018 , there were no material changes in uncertain tax positions. U.S. TAX REFORM The Tax Cuts and Jobs Act (the “Act”) was signed into law on December 22, 2017 making significant changes to the Internal Revenue Code. Changes include a permanent reduction in the U.S. statutory corporate income tax rate from 35% to 21% beginning January 1, 2018 and a one-time transition tax on the deemed repatriation of deferred foreign earnings in 2017. The SEC issued Staff Accounting Bulletin 118 (“SAB 118”), which provides additional clarification regarding the application of ASC Topic 740 when registrants do not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Act for the reporting period in which the Act was enacted. SAB 118 provides a measurement period beginning in the reporting period that includes the Act’s enactment date and ending when the registrant has obtained, prepared, and analyzed the information needed in order to complete the accounting requirements, but in no circumstances should the measurement period extend beyond one year from the enactment date. The Company has not completed its assessment of the accounting implications of the Act. However, the Company reasonably calculated an estimate of the impact of the Act in the 2017 year end income tax provision and recorded $0.1 million of additional income tax expense as of December 31, 2017. This amount was offset by the Alternative Minimum Tax credit benefit, resulting in a zero net effect to income tax expense. This provisional amount is related to the one-time transition tax on the deemed repatriation of deferred foreign earnings as of December 31, 2017. The remeasurement of certain deferred tax assets and liabilities resulting from the permanent reduction in the U.S. statutory corporate tax rate resulted in a provisional amount of zero as the change in rate was offset by a change in the valuation allowance. As the Company completes its analysis of the Act, it may make adjustments to the provisional amounts. No adjustments have been made to the provisional amounts as of the three months ended March 31, 2018. However, any subsequent adjustments to these amounts will be recorded to current tax expense in the quarter the analysis is complete. The Act subjects a U.S. shareholder to current tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries effective January 1, 2018. For the current year, the Company’s REIT entity has a GILTI income inclusion of $0.8 million . The FASB Staff Q&A, Topic 740 No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. Due to the Company’s REIT status and the corresponding distribution requirement, the Company has neither a deferred tax related to GILTI nor any current tax expense. |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2018 | |
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 and June 30, 2014, (the “November 2014 Announcement”), 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 (the “Derivative Claims”). 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. Following the Company’s receipt of the Derivative Claims, it entered into a series of tolling agreements with the shareholders from whom it received demands (the “Demand Shareholders”). The last of these tolling agreements ended in March of 2017. On October 13, 2017, one of the Demand Shareholders filed an action in the United States District Court for the Middle District of Florida, currently styled Molloy v. Boynton, et al., Civil Action No. 3:17-cv-01157-TJC-MCR (the “Derivative Lawsuit”). The complaint alleges breaches of fiduciary duties and unjust enrichment and names as defendants former officers, Paul G. Boynton, Hans E. Vanden Noort and N. Lynn Wilson, and former directors, C. David Brown, II, Mark E. Gaumond, James H. Miller, Thomas I. Morgan and Ronald Townsend (the former officers and directors named as defendants are collectively the “Individual Defendants”). In November 2017, the parties reached an agreement to resolve all claims brought in the Derivative Lawsuit and agreed to negotiate in good faith regarding the amount of attorneys’ fees and expenses to be paid to the Demand Shareholders’ counsel, subject to court approval. The parties executed a term sheet on November 27, 2017, and agreed to schedule a mediation regarding the amount of attorneys’ fees and expenses. On November 30, 2017, Rayonier and certain of the Individual Defendants who had been served with the complaint filed an unopposed Motion to Stay or, in the Alternative, to Extend Time to Respond to the Complaint in order to allow the parties time to attempt to resolve the Derivative Lawsuit without further litigation. On December 6, 2017, the Court entered an order staying the case, directing that the case be administratively closed, and ordering the parties to file a joint status report with the Court not later than March 15, 2018. At December 31, 2017, the case was stayed, some of the Individual Defendants had not yet been served, none of the defendants had filed any responsive pleading or dispositive motion, and the Company could not determine whether there was a likelihood a material loss had been incurred nor could the range of any such loss be estimated. On March 13, 2018, the Demand Shareholders, Rayonier, certain of Rayonier’s directors’ and officers’ insurance carriers, and certain of the Individual Defendants participated in a mediation, at the conclusion of which the parties reached an agreement in principle to settle the case and amended the term sheet to memorialize such agreement. On April 17, 2018, Plaintiff filed with the Court Plaintiff’s Unopposed Motion for Preliminary Approval of Derivative Settlement and Memorandum of Legal Authority in Support (“Motion for Preliminary Approval”). The terms of the proposed settlement (the “Settlement”) are contained in the Stipulation and Agreement of Settlement (the “Stipulation”), which was attached to the Motion for Preliminary Approval and filed with the Court. The Stipulation, executed by all parties, included the material terms of the term sheet. Pursuant to the terms of the Settlement, which is subject to Court approval and objections by shareholders, the Company agreed to certain governance reforms and to cause certain of its directors’ and officers’ liability insurance carriers to fund a settlement payment for the Demand Shareholders’ attorneys’ fees and expenses as well as incentive awards to the Demand Shareholders in the aggregate amount of $1.995 million . The payments agreed to on March 13, 2018, including the realized amount to be funded by the insurance carriers, were reflected in the Company’s Consolidated Financial Statements as of March 31, 2018. 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 large deductible insurance plans, primarily in the areas of executive risk, property, automobile 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, 2018 | |
Guarantees [Abstract] | |
GUARANTEES | GUARANTEES The Company provides financial guarantees as required by creditors, insurance programs, and various governmental agencies. As of March 31, 2018 , the following financial guarantees were outstanding: Financial Commitments Maximum Potential Payment Carrying Amount of Associated Liability Standby letters of credit (a) $10,353 — Guarantees (b) 2,254 43 Surety bonds (c) 1,284 — Total financial commitments $13,891 $43 (a) Approximately $9.2 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 2018 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, 2018 , 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 outstanding claims under the Company’s previous workers’ compensation self-insurance programs in Washington and Florida. 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 2018 and 2019 and are expected to be renewed as required. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 2017 Net Income $42,706 $35,083 Less: Net income attributable to noncontrolling interest 2,167 1,240 Net income attributable to Rayonier Inc. $40,539 $33,843 Shares used for determining basic earnings per common share 128,801,210 123,587,901 Dilutive effect of: Stock options 78,475 106,690 Performance and restricted shares 672,712 228,275 Shares used for determining diluted earnings per common share 129,552,397 123,922,866 Basic earnings per common share attributable to Rayonier Inc.: $0.31 $0.27 Diluted earnings per common share attributable to Rayonier Inc.: $0.31 $0.27 Three Months Ended March 31, 2018 2017 Anti-dilutive shares excluded from the computations of diluted earnings per share: Stock options 171,819 592,653 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 , foreign currency exchange contracts and foreign currency option contracts had maturity dates through May 2019 and March 2019, 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. The New Zealand JV is exposed to foreign currency risk when making shareholder loan payments which are denominated in U.S. dollars. The New Zealand JV typically hedges 60% 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. For the three months ended March 31, 2018 , the change in fair value of the foreign exchange forward contracts of $0.1 million was recorded in “ Interest and other miscellaneous income, net ” as the contracts did not qualify for hedge accounting treatment. As of March 31, 2018 , foreign exchange forward contracts had maturity dates through December 2018. In March 2018, the Company entered into a foreign currency exchange contract (notional amount of NZ $37 million ) to mitigate the risk of fluctuations in foreign currency exchange rates when translating the New Zealand JV’s balance sheet to U.S. dollars. This contract hedged the cash portion of the Company’s net investment in New Zealand and qualified as a net investment hedge. The Company intends to repatriate the cash in April 2018. The fair value of this contract was determined by a mark-to-market valuation, which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate. The hedge qualified for hedge accounting whereby fluctuations in fair market value during the life of the hedge are recorded in AOCI and remain there permanently unless a partial or full liquidation of the investment is made. At each reporting period, the Company reviews the hedge for ineffectiveness. Ineffectiveness can occur when changes to the investment or the hedged instrument are made such that the risk of foreign exchange movements are no longer mitigated by the hedging instrument. At that time, the amount related to the ineffectiveness of the hedge is recorded into earnings. The Company does not expect any ineffectiveness during the life of the hedge. The foreign currency exchange contract matures April 2018. 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. The following table contains information on the outstanding interest rate swaps as of March 31, 2018 : Outstanding Interest Rate Swaps (a) Date Entered Into Term Notional Amount Related Debt Facility Fixed Rate of Swap Bank Margin on Debt Total Effective Interest Rate (b) August 2015 9 years $170,000 Term Credit Agreement 2.20 % 1.63 % 3.83 % August 2015 9 years 180,000 Term Credit Agreement 2.35 % 1.63 % 3.98 % April 2016 10 years 100,000 Incremental Term Loan 1.60 % 1.90 % 3.50 % April 2016 10 years 100,000 Incremental Term Loan 1.60 % 1.90 % 3.50 % July 2016 10 years 100,000 Incremental Term Loan 1.26 % 1.90 % 3.16 % (a) All interest rate swaps have been designated as interest rate cash flow hedges and qualify for hedge accounting. (b) Rate is before estimated patronage payments. 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, 2018 and 2017 . Three Months Ended March 31, Income Statement Location 2018 2017 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other comprehensive income $1,233 ($71 ) Foreign currency option contracts Other comprehensive income 181 (41 ) Interest rate swaps Other comprehensive income 15,598 2,633 Derivatives designated as a net investment hedge: Foreign currency exchange contract Other comprehensive income 110 — Derivatives not designated as hedging instruments: Foreign currency exchange contracts Interest and other miscellaneous income, net 129 125 During the next 12 months, the amount of the March 31, 2018 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 $3.0 million . The following table contains the notional amounts of the derivative financial instruments recorded in the Consolidated Balance Sheets: Notional Amount March 31, 2018 December 31, 2017 Derivatives designated as cash flow hedges: Foreign currency exchange contracts $87,400 $107,400 Foreign currency option contracts 34,000 48,000 Interest rate swaps 650,000 650,000 Derivatives designated as a net investment hedge: Foreign currency exchange contract 26,788 — Derivative not designated as a hedging instrument: Foreign currency exchange contracts 25,883 18,439 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, 2018 December 31, 2017 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other current assets $3,736 $2,286 Other assets 304 538 Other current liabilities (21 ) (37 ) Foreign currency option contracts Other current assets 572 389 Other assets — 137 Other current liabilities (68 ) (119 ) Other non-current liabilities — (55 ) Interest rate swaps Other assets 31,037 17,473 Other non-current liabilities — (2,033 ) Derivatives designated as net investment hedges: Foreign currency exchange contract Other current assets 110 — Derivative not designated as a hedging instrument: Foreign currency exchange contracts Other current assets 238 209 Other current liabilities (155 ) (189 ) Total derivative contracts: Other current assets $4,656 $2,884 Other assets 31,341 18,148 Total derivative assets $35,997 $21,032 Other current liabilities (244 ) (345 ) Other non-current liabilities — (2,088 ) Total derivative liabilities ($244 ) ($2,433 ) (a) See Note 13 — 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, 2018 | |
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, 2018 and December 31, 2017 , using market information and what the Company believes to be appropriate valuation methodologies under GAAP: March 31, 2018 December 31, 2017 Asset (Liability) (a) Carrying Amount Fair Value Carrying Amount Fair Value Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $92,785 $92,785 — $112,653 $112,653 — Restricted cash (b) 84,903 84,903 — 59,703 59,703 — Current maturities of long-term debt — — — (3,375 ) — (3,375 ) Long-term debt (c) (996,145 ) — (999,910 ) (1,022,004 ) — (1,030,135 ) Interest rate swaps (d) 31,037 — 31,037 15,440 — 15,440 Foreign currency exchange contracts (d) 4,212 — 4,212 2,807 — 2,807 Foreign currency option contracts (d) 505 — 505 352 — 352 (a) The Company did not have Level 3 assets or liabilities at March 31, 2018 and December 31, 2017 . (b) Restricted cash represents 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 17 — 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 12 — Derivative Financial Instruments and Hedging Activities for information regarding the Consolidated Balance Sheets 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, 2018 | |
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. As of March 31, 2018, the Company has paid $0.5 million of the approximately $2.9 million in current year mandatory pension contribution requirements (based on actuarially determined estimates and IRS minimum funding requirements). The net pension and postretirement benefit (credit) costs that have been recorded are shown in the following table: Components of Net Periodic Benefit (Credit) Cost Income Statement Location (a) Pension Postretirement Three Months Ended March 31, Three Months Ended March 31, 2018 2017 2018 2017 Components of Net Periodic Benefit (Credit) Cost Service cost Selling and general expenses — — $2 $2 Interest cost Interest and other miscellaneous income, net 751 815 12 13 Expected return on plan assets (b) Interest and other miscellaneous income, net (982 ) (945 ) — — Amortization of losses Interest and other miscellaneous income, net 159 116 1 — Net periodic benefit (credit) cost ($72 ) ($14 ) $15 $15 (a) Due to the adoption of ASU No. 2017-07, the service cost component of net periodic benefit (credit) cost is now recorded to “Selling and general expenses” in the Consolidated Statements of Income and Comprehensive Income with other compensation costs arising from services rendered by employees during the period. The other components of net periodic benefit (credit) cost (interest cost, expected return on plan assets and amortization of losses) are now recorded to “ Interest and other miscellaneous income, net ” in the Consolidated Statements of Income. Prior period amounts have been reclassified to conform to current period presentation. See Note 1 — Basis of Presentation for additional information. (b) The weighted-average expected long-term rate of return on plan assets used in computing 2018 net periodic benefit cost for pension benefits is 7.2% . |
OTHER OPERATING INCOME, NET
OTHER OPERATING INCOME, NET | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 2017 Foreign currency (expense) income ($753 ) $237 Gain on sale or disposal of property and equipment 15 1 Gain on foreign currency exchange and option contracts 1,433 728 Log trading marketing fees 70 179 Income from the sale of unused Internet Protocol addresses 646 — Miscellaneous (expense) income, net (42 ) 43 Total $1,369 $1,188 |
INVENTORY
INVENTORY | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORY As of March 31, 2018 and December 31, 2017 , Rayonier’s inventory was solely comprised of finished goods, as follows: March 31, 2018 December 31, 2017 Finished goods inventory Real estate inventory (a) $12,815 $18,350 Log inventory 7,178 5,791 Total inventory $19,993 $24,141 (a) Represents cost of HBU real estate (including capitalized development investments) expected to be sold within 12 months. See Note 6 — Higher And Better Use Timberlands And Real Estate Development Investments for additional information. |
RESTRICTED CASH
RESTRICTED CASH | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 and December 31, 2017 , the Company had $84.9 million and $59.7 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. The following table contains the amounts of restricted cash recorded in the Consolidated Balance Sheets and Consolidated Statements of Cash Flows for the three months ended March 31, 2018 : March 31, 2018 Restricted cash deposited with LKE intermediary $84,353 Restricted cash held in escrow 550 Total restricted cash shown in the Consolidated Balance Sheets 84,903 Cash and cash equivalents 92,785 Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows $177,688 |
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
ASSETS HELD FOR SALE | ASSETS HELD FOR SALE Assets held for sale is composed of properties expected to be sold within 12 months that also meet the other relevant held-for sale criteria in accordance with ASC 360-10-45-9. As of March 31, 2018 , the basis in properties meeting this classification was $24.6 million . Since the basis in these properties was less than the fair value, including costs to sell, no impairment was recognized. As of December 31, 2017 , there were no properties identified that met this classification. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 3 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOME The following table summarizes the changes in AOCI by component for the three months ended March 31, 2018 and the year ended December 31, 2017 . All amounts are presented net of tax and exclude portions attributable to noncontrolling interest. Foreign currency translation gains Net investment hedges of New Zealand JV Cash flow hedges Employee benefit plans Total Balance as of December 31, 2016 $8,559 $1,665 $10,831 ($20,199 ) $856 Other comprehensive income before reclassifications 7,416 — 7,321 (673 ) 14,064 Amounts reclassified from accumulated other comprehensive income — — (1,968 ) 465 (b) (1,503 ) Net other comprehensive income/(loss) 7,416 — 5,353 (208 ) 12,561 Balance as of December 31, 2017 $15,975 $1,665 $16,184 ($20,407 ) $13,417 Other comprehensive income before reclassifications 7,496 110 17,176 (a) — 24,782 Amounts reclassified from accumulated other comprehensive income — — (795 ) 159 (b) (636 ) Net other comprehensive income 7,496 110 16,381 159 24,146 Balance as of March 31, 2018 $23,471 $1,775 $32,565 ($20,248 ) $37,563 (a) Includes $15.6 million of other comprehensive gain related to interest rate swaps. See Note 12 — Derivative Financial Instruments and Hedging Activities for additional information. (b) This component of other comprehensive income is included in the computation of net periodic pension cost. See Note 14 — 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, 2018 and March 31, 2017 : Details about accumulated other comprehensive income components Amount reclassified from accumulated other comprehensive income Affected line item in the income statement March 31, 2018 March 31, 2017 Realized gain on foreign currency exchange contracts ($1,297 ) ($446 ) Other operating income, net Realized gain on foreign currency option contracts (136 ) (282 ) Other operating income, net Noncontrolling interest 330 168 Comprehensive income attributable to noncontrolling interest Income tax expense from gain on foreign currency contracts 308 156 Income tax expense Net gain from accumulated other comprehensive income ($795 ) ($404 ) |
CONSOLIDATING FINANCIAL STATEME
CONSOLIDATING FINANCIAL STATEMENTS | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated SALES — — $203,196 — $203,196 Costs and Expenses Cost of sales — — 138,488 — 138,488 Selling and general expenses — 4,389 4,614 — 9,003 Other operating expense (income), net 13 (635 ) (747 ) — (1,369 ) 13 3,754 142,355 — 146,122 OPERATING (LOSS) INCOME (13 ) (3,754 ) 60,841 — 57,074 Interest expense (3,139 ) (4,653 ) (260 ) — (8,052 ) Interest and miscellaneous income (expense), net 2,628 765 (2,773 ) — 620 Equity in income from subsidiaries 41,063 48,828 — (89,891 ) — INCOME BEFORE INCOME TAXES 40,539 41,186 57,808 (89,891 ) 49,642 Income tax expense — (123 ) (6,813 ) — (6,936 ) NET INCOME 40,539 41,063 50,995 (89,891 ) 42,706 Less: Net income attributable to noncontrolling interest — — 2,167 — 2,167 NET INCOME ATTRIBUTABLE TO RAYONIER INC. 40,539 41,063 48,828 (89,891 ) 40,539 OTHER COMPREHENSIVE INCOME Foreign currency translation adjustment, net of income tax 7,606 111 9,577 (7,606 ) 9,688 Cash flow hedges, net of income tax 16,381 15,598 1,017 (16,381 ) 16,615 Amortization of pension and postretirement plans, net of income tax 159 159 — (159 ) 159 Total other comprehensive income 24,146 15,868 10,594 (24,146 ) 26,462 COMPREHENSIVE INCOME 64,685 56,931 61,589 (114,037 ) 69,168 Less: Comprehensive income attributable to noncontrolling interest — — 4,483 — 4,483 COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. $64,685 $56,931 $57,106 ($114,037 ) $64,685 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 — — $194,491 — $194,491 Costs and Expenses Cost of sales — — 136,828 — 136,828 Selling and general expenses — 3,536 6,054 — 9,590 Other operating expense (income), net — 111 (1,299 ) — (1,188 ) — 3,647 141,583 — 145,230 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 BALANCE SHEETS As of March 31, 2018 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $34,837 $18,651 $39,297 — $92,785 Accounts receivable, less allowance for doubtful accounts 1,995 946 34,852 — 37,793 Inventory — — 19,993 — 19,993 Prepaid expenses — 882 15,554 — 16,436 Assets held for sale — — 24,552 — 24,552 Other current assets — 216 4,719 — 4,935 Total current assets 36,832 20,695 138,967 — 196,494 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — 2,424,675 — 2,424,675 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS — — 87,702 — 87,702 NET PROPERTY, PLANT AND EQUIPMENT — 17,693 5,483 — 23,176 RESTRICTED CASH — — 84,903 — 84,903 INVESTMENT IN SUBSIDIARIES 1,583,443 2,822,945 — (4,406,388 ) — INTERCOMPANY RECEIVABLE 43,396 (627,022 ) 583,626 — — OTHER ASSETS 2 26,471 34,949 — 61,422 TOTAL ASSETS $1,663,673 $2,260,782 $3,360,305 ($4,406,388 ) $2,878,372 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable — $3,453 $23,629 — $27,082 Accrued taxes — 7 3,576 — 3,583 Accrued payroll and benefits — 2,074 1,686 — 3,760 Accrued interest 6,094 2,000 6 — 8,100 Deferred revenue — — 7,901 — 7,901 Other current liabilities 1,995 546 12,550 — 15,091 Total current liabilities 8,089 8,080 49,348 — 65,517 LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS 323,526 648,619 24,000 — 996,145 PENSION AND OTHER POSTRETIREMENT BENEFITS — 31,821 (684 ) — 31,137 OTHER NON-CURRENT LIABILITIES — 7,780 41,620 — 49,400 INTERCOMPANY PAYABLE (299,715 ) (18,961 ) 318,676 — — TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,631,773 1,583,443 2,822,945 (4,406,388 ) 1,631,773 Noncontrolling interest — — 104,400 — 104,400 TOTAL SHAREHOLDERS’ EQUITY 1,631,773 1,583,443 2,927,345 (4,406,388 ) 1,736,173 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,663,673 $2,260,782 $3,360,305 ($4,406,388 ) $2,878,372 CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2017 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $48,564 $25,042 $39,047 — $112,653 Accounts receivable, less allowance for doubtful accounts — 3,726 23,967 — 27,693 Inventory — — 24,141 — 24,141 Prepaid expenses — 759 15,234 — 15,993 Other current assets — 14 3,033 — 3,047 Total current assets 48,564 29,541 105,422 — 183,527 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — 2,462,066 — 2,462,066 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS — — 80,797 — 80,797 NET PROPERTY, PLANT AND EQUIPMENT — 21 23,357 — 23,378 RESTRICTED CASH — — 59,703 — 59,703 INVESTMENT IN SUBSIDIARIES 1,531,156 2,814,408 — (4,345,564 ) — INTERCOMPANY RECEIVABLE 40,067 (628,167 ) 588,100 — — OTHER ASSETS 2 12,680 36,328 — 49,010 TOTAL ASSETS $1,619,789 $2,228,483 $3,355,773 ($4,345,564 ) $2,858,481 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable — $2,838 $22,310 — $25,148 Current maturities of long-term debt — — 3,375 — 3,375 Accrued taxes — 48 3,733 — 3,781 Accrued payroll and benefits — 5,298 4,364 — 9,662 Accrued interest 3,047 1,995 12 — 5,054 Deferred revenue — — 9,721 — 9,721 Other current liabilities — 564 11,243 — 11,807 Total current liabilities 3,047 10,743 54,758 — 68,548 LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS 323,434 663,570 35,000 — 1,022,004 PENSION AND OTHER POSTRETIREMENT BENEFITS — 32,589 (684 ) — 31,905 OTHER NON-CURRENT LIABILITIES — 9,386 33,698 — 43,084 INTERCOMPANY PAYABLE (299,715 ) (18,961 ) 318,676 — — TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,593,023 1,531,156 2,814,408 (4,345,564 ) 1,593,023 Noncontrolling interest — — 99,917 — 99,917 TOTAL SHAREHOLDERS’ EQUITY 1,593,023 1,531,156 2,914,325 (4,345,564 ) 1,692,940 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,619,789 $2,228,483 $3,355,773 ($4,345,564 ) $2,858,481 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2018 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES ($701 ) $37,055 $41,881 — $78,235 INVESTING ACTIVITIES Capital expenditures — (35 ) (13,157 ) — (13,192 ) Real estate development investments — — (2,340 ) — (2,340 ) Purchase of timberlands — — (12 ) — (12 ) Investment in subsidiaries — 31,654 — (31,654 ) — Other — — (2,105 ) — (2,105 ) CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES — 31,619 (17,614 ) (31,654 ) (17,649 ) FINANCING ACTIVITIES Repayment of debt — (26,000 ) (3,375 ) — (29,375 ) Dividends paid (32,123 ) — — — (32,123 ) Proceeds from the issuance of common shares under incentive stock plan 5,455 — — — 5,455 Repurchase of common shares under share repurchase program (18 ) — — — (18 ) Intercompany distributions 13,660 (49,065 ) 3,751 31,654 — CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES (13,026 ) (75,065 ) 376 31,654 (56,061 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH — — 807 — 807 CASH AND CASH EQUIVALENTS Change in cash and cash equivalents (13,727 ) (6,391 ) 25,450 — 5,332 Balance, beginning of year 48,564 25,042 98,750 — 172,356 Balance, end of period $34,837 $18,651 $124,200 — $177,688 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 ) Investment in subsidiaries — 2,636 — (2,636 ) — Other — — (5,617 ) — (5,617 ) CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES — 2,636 5,973 (2,636 ) 5,973 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 Issuance of intercompany notes — — — — — 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 27,490 — 173,016 Balance, beginning of year 21,453 9,461 126,703 — 157,617 Balance, end of period $157,916 $18,524 $154,193 — $330,633 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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”). The year-end balance sheet information was derived from audited financial statements not included herein. In the opinion of management, these financial statements and notes reflect any 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, 2017 , as filed with the SEC (the “2017 Form 10-K”). |
Cost of Sales | COST OF SALES Cost of sales associated with real estate sold includes the cost of the land, the cost of any timber on the property that was conveyed to the buyer, any real estate development costs and any closing costs including sales commissions that may be borne by the Company. As allowed under GAAP, the Company expenses closing costs, including sales commissions, when incurred for all real estate sales with future performance obligations expected to be satisfied within one year. When developed residential or commercial land is sold, the cost of sales includes actual costs incurred and estimates of future development costs benefiting the property sold through completion. Costs are allocated to each sold unit or lot based upon the relative sales value. For purposes of allocating development costs, estimates of future revenues and development costs are re-evaluated periodically throughout the year, with adjustments being allocated prospectively to the remaining units available for sale. |
Recently Adopted Standards | RECENTLY ADOPTED STANDARDS The Company adopted Accounting Standards Update (“ASU”) No. 2014-09, Revenue from Contracts with Customers ( Topic 606 ), on January 1, 2018. The Company elected to use the modified retrospective method to contracts that were not completed at the date of adoption. The Company also elected not to retrospectively restate contracts modified prior to January 1, 2018. A cumulative effect of adoption adjustment to the opening balance of retained earnings was not recorded as there was no accounting impact to any contracts with customers not completed at the date of adoption. See Note 2 — Revenue for additional information. In March 2017, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which requires that an employer report the service cost component of net periodic benefit cost in the Consolidated Statements of Income in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. Additionally, the other components of net periodic benefit cost (interest cost, expected return on plan assets and amortization of losses or gains) are required to be presented in the income statement separately from the service cost component and outside a subtotal of income from operations. ASU No. 2017-07 is effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods, and is required to be applied retrospectively to all periods presented beginning in the period of adoption. Rayonier adopted ASU No. 2017-07 during the first quarter ended March 31, 2018 and applied the update retrospectively to all periods presented. See Note 14 — Employee Benefit Plans for the components of net periodic benefit cost and the location of these items in the Consolidated Statements of Income and Comprehensive Income. 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 Consolidated Statements of Cash Flows. ASU No. 2016-18 is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. ASU No. 2016-18 is required to be applied retrospectively to all periods presented beginning in the period of adoption. Rayonier adopted ASU No. 2016-18 in the first quarter ended March 31, 2018 and applied the update retrospectively to all periods presented. Restricted cash is now included with cash and cash equivalents when reconciling the beginning-of-year and end-of-period total amounts shown on the Consolidated Statements of Cash Flows and therefore changes in restricted cash are no longer reported as cash flow activities. See Note 17 — Restricted Cash for additional information, including the nature of restrictions on the Company’s cash, cash equivalents, and restricted cash. Rayonier adopted ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Receipts and Cash Payments in the first quarter ended March 31, 2018 with no material impact on the consolidated financial statements. |
New Accounting Standards | NEW ACCOUNTING STANDARDS In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which currently 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. In January 2018, the FASB issued Leases (Topic 842): Land Easement Practical Expedient for Transition to Topic 842. This update provides an optional transition practical expedient not to evaluate under ASU No. 2016-02 existing or expired land easements that were not previously accounted for as leases under the current leases guidance. An entity that elects this practical expedient should evaluate new or modified land easements under ASU No. 2016-02, once adopted. An entity that does not elect this practical expedient should evaluate all existing or expired land easements in connection with the adoption of ASU No. 2016-02 to assess whether they meet the definition of a lease. This standard is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and is required to be applied on a modified retrospective basis beginning at the earliest period presented. Early adoption is permitted. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which will make more financial and non-financial hedging strategies eligible for hedge accounting. It also amends the presentation and disclosure requirements and changes how companies assess effectiveness. It is intended to more closely align hedge accounting with companies’ risk management strategies, simplify the application of hedge accounting, and increase transparency as to the scope and results of hedging programs. ASU No. 2017-12 is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. Early adoption is permitted and the amended presentation and disclosure guidance is required to be applied on a prospective basis. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-02 , Income Statement—Reporting Compr ehensive Income ( Topic 220 ) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Consequently, the amendments eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act. The amendments in this update also require certain disclosures about stranded tax effects. ASU No. 2018-02 is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. ASU No. 2018-02 is required to be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. Early adoption is permitted in any interim period for which financial statements have not yet been issued. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. In February 2018, the FASB issued ASU No. 2018-03 , Technical Corrections and Improvements to Financial Instruments —Overall (Subtopic 825-10), to clarify certain provisions of ASU No. 2016-01 and amend other provisions. ASU No. 2018-03 is effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years beginning after June 15, 2018. Early adoption is permitted for entities that have adopted ASU 2016-01. The Company early adopted ASU 2016-01 during the fourth quarter ended December 31, 2017 and is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. |
Subsequent Events | SUBSEQUENT EVENTS The Company has evaluated events occurring from March 31, 2018 to the date of issuance of these Consolidated Financial Statements for potential recognition or disclosure in the consolidated financial statements. No events were identified that warranted recognition. See Note 9 — Contingencies for events that warranted disclosure. |
Revenue Recognition | REVENUE RECOGNITION The Company recognizes revenues when control of promised goods or services (“performance obligations”) is transferred to customers, in an amount that reflects the consideration expected to be entitled to in exchange for those goods or services (“transaction price”). The Company generally satisfies performance obligations within a year of entering into a contract and therefore has applied the disclosure exemption found under ASC 606-10-50-14. Unsatisfied performance obligations as of March 31, 2018 are primarily due to advances on stumpage contracts and unearned license revenue. These performance obligations are expected to be satisfied within the next twelve months. The Company generally collects payment within a year of satisfying performance obligations and therefore has elected not to adjust revenues for a financing component. |
Revenue Recognition for Timber Sales and Non-Timber Income | REVENUE RECOGNITION FOR TIMBER SALES AND NON-TIMBER INCOME Revenue from the sale of timber is recognized when control passes to the buyer. The Company utilizes two primary methods or sales channels for the sale of timber, a stumpage or standing timber model and a delivered log model. The sales method the Company employs depends upon local market conditions and which method management believes will provide the best overall margins. Under the stumpage model, standing timber is sold primarily under pay-as-cut contracts, with specified duration (typically one year or less) and fixed prices, whereby revenue is recognized as timber is severed and the sales volume is determined. The Company also sells stumpage under lump-sum contracts for specified parcels where the Company receives cash for the full agreed value of the timber prior to harvest and control passes to the buyer upon signing the contract. The Company retains interest in the land, slash products, and the use of the land for recreational and other purposes. Any uncut timber remaining at the end of the contract period reverts to the Company. Revenue is recognized for lump-sum timber sales when payment is received, the contract is signed and control passes to the buyer. A third type of stumpage sale the Company utilizes is an agreed-volume sale, whereby revenue is recognized using the output method, as periodic physical observations are made of the percentage of acreage harvested. Under the delivered log model, the Company hires third-party loggers and haulers to harvest timber and deliver it to a buyer. Sales of domestic logs generally do not require an initial payment and are made to third-party customers on open credit terms. Sales of export logs generally require a letter of credit from an approved bank. Revenue is recognized when the logs are delivered and control has passed to the buyer. For domestic log sales, control is considered passed to the buyer as the logs are delivered to the customer’s facility. For export log sales (primarily in New Zealand), control is considered passed to the buyer upon delivery onto the export vessel. Non-timber income is primarily comprised of hunting and recreational licenses. Such income and any related cost are recognized ratably over the term of the agreement and included in “Sales” and “Cost of sales”, respectively. Payment is generally due upon contract execution. The following table summarizes revenue recognition and general payment terms for timber sales: Contract Type Performance Obligation Timing of Revenue Recognition General Payment Terms Stumpage Pay-as-Cut Right to harvest a unit (i.e. ton, MBF, JAS m3) of standing timber As timber is severed (point-in-time) Initial payment between Stumpage Lump Sum Right to harvest an agreed upon volume of standing timber Contract execution (point-in-time) Full payment due upon contract execution Stumpage Agreed Volume Right to harvest an agreed upon acreage of standing timber As timber is severed (over-time) Payments made throughout contract term at the earlier of a specified harvest percentage or time elapsed Delivered Wood (Domestic) Delivery of a unit (i.e. ton, MBF, JAS m3) of timber to customer’s facility Upon delivery to customer’s facility (point-in-time) No initial payment and on open credit terms; collection generally within 30 days of invoice Delivered Wood (Export) Delivery of a unit (i.e. ton, MBF, JAS m3) onto export vessel Upon delivery onto export vessel (point-in-time) Letter of credit from an approved bank; collection generally within 30 days of delivery |
Revenue Recognition for Real Estate Sales | REVENUE RECOGNITION FOR REAL ESTATE SALES The Company recognizes revenue on sales of real estate generally at the point in time when cash has been received, the sale has closed, and control has passed to the buyer. A deposit of 5% is generally required at the time a purchase and sale agreement is executed, with the balance due at closing. On sales of real estate containing future performance obligations, revenue is recognized using the input method based on costs incurred to date relative to the total costs expected to fulfill the performance obligations in the contract with the customer. |
Revenue Recognition for Log Trading | REVENUE RECOGNITION FOR LOG TRADING Log trading revenue is generally recognized when procured logs are delivered to the buyer and control has passed. For domestic log trading, control is considered passed to the buyer as the logs are delivered to the customer’s facility. For export log trading control is considered passed to the buyer upon delivery onto the export vessel. The Trading segment also includes sales from log agency contracts, whereby the Company acts as an agent managing export services on behalf of third parties. Revenue for log agency fees are recognized net of related costs. |
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. Sales between operating segments are made based on estimated fair market value, and intercompany sales, purchases and profits (losses) are eliminated in consolidation. 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 expense, interest and other miscellaneous income and income tax expense, 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. |
Offsetting Derivatives | 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 of Financial Instruments | 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, Subsidiaries or Other Investments, Consolidated Entities | 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. |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue by Product | The following table presents our timber sales disaggregated by contract type for the three months ended March 31, 2018 and 2017 : Three Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Trading Total March 31, 2018 Stumpage Pay-as-Cut $22,511 — — — $22,511 Stumpage Lump Sum 1,818 5,106 — — 6,924 Stumpage Agreed Volume — — — — — Total Stumpage 24,329 5,106 — — 29,435 Delivered Wood (Domestic) 13,377 25,381 20,103 937 59,798 Delivered Wood (Export) 434 — 30,486 38,146 69,066 Total Delivered 13,811 25,381 50,589 39,083 128,864 Total Timber Sales $38,140 $30,487 $50,589 $39,083 $158,299 March 31, 2017 Stumpage Pay-as-Cut $20,102 — — — $20,102 Stumpage Lump Sum 2,797 2,580 — — 5,377 Stumpage Agreed Volume — 1,180 — — 1,180 Total Stumpage 22,899 3,760 — — 26,659 Delivered Wood (Domestic) 9,816 21,032 18,845 1,007 50,700 Delivered Wood (Export) — — 21,895 32,970 54,865 Total Delivered 9,816 21,032 40,740 33,977 105,565 Total Timber Sales $32,715 $24,792 $40,740 $33,977 $132,224 The following table presents our revenue from contracts with customers disaggregated by product type for the three months ended March 31, 2018 and 2017 : Three Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Elim. Total March 31, 2018 Pulpwood $21,606 $3,419 $5,844 — $4,257 — $35,126 Sawtimber 15,937 27,068 44,745 — 34,826 — 122,576 Hardwood 597 — — — — — 597 Total Timber Sales 38,140 30,487 50,589 — 39,083 — 158,299 License Revenue, Primarily From Hunting 4,084 25 52 — — — 4,161 Other Non-Timber/Carbon Revenue 1,195 805 2,323 — — — 4,323 Agency Fee Income — — — — 123 — 123 Total Non-Timber Sales 5,279 830 2,375 — 123 — 8,607 Improved Development — — — 1,121 — — 1,121 Unimproved Development — — — 7,446 — — 7,446 Rural — — — 1,652 — — 1,652 Non-strategic / Timberlands — — — 25,845 — — 25,845 Large Dispositions — — — — — — — Total Real Estate Sales — — — 36,064 — — 36,064 Revenue from Contracts with Customers 43,419 31,317 52,964 36,064 39,206 — 202,970 Other Non-Timber Sales, Primarily Lease 169 57 — — — — 226 Intersegment — — — — 6 (6 ) — Total Revenue $43,588 $31,374 $52,964 $36,064 $39,212 ($6 ) $203,196 March 31, 2017 Pulpwood $18,976 $3,359 $5,161 — $2,837 — $30,333 Sawtimber 13,023 21,433 35,579 — 31,140 — 101,175 Hardwood 716 — — — — — 716 Total Timber Sales 32,715 24,792 40,740 — 33,977 — 132,224 License Revenue, Primarily from Hunting 3,830 97 46 — — — 3,973 Other Non-Timber Revenue 2,390 946 88 — — — 3,424 Agency Fee Income — — — — 288 — 288 Total Non-Timber Sales 6,220 1,043 134 — 288 — 7,685 Improved Development — — — — — — — Unimproved Development — — — — — — — Rural — — — 6,739 — — 6,739 Non-strategic / Timberlands — — — 5,599 — — 5,599 Large Dispositions — — — 41,951 — — 41,951 Total Real Estate Sales — — — 54,289 — — $54,289 Revenue from Contracts with Customers 38,935 25,835 40,874 54,289 34,265 — 194,198 Other Non-Timber Sales, Primarily Lease 203 90 — — — — 293 Total Revenue $39,138 $25,925 $40,874 $54,289 $34,265 — $194,491 |
Revenue Performance Obligation, Expected Timing of Satisfaction | The following table summarizes revenue recognition and general payment terms for timber sales: Contract Type Performance Obligation Timing of Revenue Recognition General Payment Terms Stumpage Pay-as-Cut Right to harvest a unit (i.e. ton, MBF, JAS m3) of standing timber As timber is severed (point-in-time) Initial payment between Stumpage Lump Sum Right to harvest an agreed upon volume of standing timber Contract execution (point-in-time) Full payment due upon contract execution Stumpage Agreed Volume Right to harvest an agreed upon acreage of standing timber As timber is severed (over-time) Payments made throughout contract term at the earlier of a specified harvest percentage or time elapsed Delivered Wood (Domestic) Delivery of a unit (i.e. ton, MBF, JAS m3) of timber to customer’s facility Upon delivery to customer’s facility (point-in-time) No initial payment and on open credit terms; collection generally within 30 days of invoice Delivered Wood (Export) Delivery of a unit (i.e. ton, MBF, JAS m3) onto export vessel Upon delivery onto export vessel (point-in-time) Letter of credit from an approved bank; collection generally within 30 days of delivery |
SEGMENT AND GEOGRAPHICAL INFO32
SEGMENT AND GEOGRAPHICAL INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables summarize the segment information for the three months ended March 31, 2018 and 2017 : Three Months Ended March 31, SALES 2018 2017 Southern Timber $43,588 $39,138 Pacific Northwest Timber 31,374 25,925 New Zealand Timber 52,964 40,874 Real Estate (a) 36,064 54,289 Trading 39,212 34,265 Intersegment Eliminations (6 ) — Total $203,196 $194,491 (a) The three months ended March 31, 2017 includes $42.0 million of Large Dispositions. Three Months Ended March 31, OPERATING INCOME (LOSS) 2018 2017 Southern Timber $12,227 $13,939 Pacific Northwest Timber 4,674 (878 ) New Zealand Timber 15,957 10,243 Real Estate (a) 28,054 29,665 Trading 149 1,097 Corporate and other (3,987 ) (4,805 ) Total Operating Income 57,074 49,261 Unallocated interest expense and other (7,432 ) (7,897 ) Total Income before Income Taxes $49,642 $41,364 (a) The three months ended March 31, 2017 includes $28.2 million of Large Dispositions. Three Months Ended March 31, DEPRECIATION, DEPLETION AND AMORTIZATION 2018 2017 Southern Timber $15,979 $12,452 Pacific Northwest Timber 9,504 10,210 New Zealand Timber 5,717 5,407 Real Estate (a) 3,066 10,707 Trading — — Corporate and other 271 100 Total $34,537 $38,876 (a) The three months ended March 31, 2017 includes $8.1 million from Large Dispositions. Three Months Ended March 31, NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT 2018 2017 Southern Timber — — Pacific Northwest Timber — — New Zealand Timber — — Real Estate (a) 1,624 10,222 Trading — — Total $1,624 $10,222 (a) The three months ended March 31, 2017 includes $5.7 million from Large Dispositions. |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | Rayonier’s debt consisted of the following at March 31, 2018 : March 31, 2018 Term Credit Agreement borrowings due 2024 at a variable interest rate of 3.3% at March 31, 2018 (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 3.6% at March 31, 2018 (b) 300,000 Revolving Credit Facility borrowings due 2020 at an average variable interest rate of 3.1% at March 31, 2018 24,000 Total debt 999,000 Less: Deferred financing costs (2,855 ) Long-term debt, net of deferred financing costs $996,145 (a) As of March 31, 2018, 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, 2018, 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: 2018 — 2019 — 2020 24,000 2021 — 2022 325,000 Thereafter 650,000 Total Debt $999,000 |
HIGHER AND BETTER USE TIMBERL34
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 investments from December 31, 2017 to March 31, 2018 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, 2017 $59,653 $21,144 $80,797 Plus: Current portion (a) 6,702 11,648 18,350 Total Balance at December 31, 2017 66,355 32,792 99,147 Non-cash cost of land and improved development (486 ) (999 ) (1,485 ) Timber depletion from harvesting activities and basis of timber sold in real estate sales (258 ) — (258 ) Capitalized real estate development investments (b) — 2,340 2,340 Intersegment transfers 773 — 773 Total Balance at March 31, 2018 66,384 34,133 100,517 Less: Current portion (a) (3,828 ) (8,987 ) (12,815 ) Non-current portion at March 31, 2018 $62,556 $25,146 $87,702 (a) The current portion of Higher and Better Use Timberlands and Real Estate Development Investments is recorded in Inventory. See Note 16 — Inventory for additional information. (b) Capitalized real estate development investments include $0.2 million of capitalized interest. |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Payments | At March 31, 2018 , 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 2018 $878 $7,415 $6,996 $15,289 2019 947 9,389 4,279 14,615 2020 755 9,124 3,982 13,861 2021 636 8,947 1,877 11,460 2022 629 8,894 1,539 11,062 Thereafter (c) 703 157,168 1,507 159,378 $4,548 $200,937 $20,180 $225,665 (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 $ 2.4 million of pension contribution requirements remaining in 2018 based on actuarially determined estimates and IRS minimum funding requirements, payments expected to be made on derivative financial instruments (foreign exchange contracts and interest rate swaps), construction of the Company’s Wildlight development project and other purchase obligations. For additional information on the pension contribution see Note 15 — Employee Benefit Plans in the 2017 Form 10-K. (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, 2018 , the New Zealand JV has three CFL’s under termination notice that are currently being relinquished as harvest activities are concluding, 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, 2018 | |
Guarantees [Abstract] | |
Schedule of Guarantor Obligations | As of March 31, 2018 , the following financial guarantees were outstanding: Financial Commitments Maximum Potential Payment Carrying Amount of Associated Liability Standby letters of credit (a) $10,353 — Guarantees (b) 2,254 43 Surety bonds (c) 1,284 — Total financial commitments $13,891 $43 (a) Approximately $9.2 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 2018 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, 2018 , 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 outstanding claims under the Company’s previous workers’ compensation self-insurance programs in Washington and Florida. 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 2018 and 2019 and are expected to be renewed as required. |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 2017 Net Income $42,706 $35,083 Less: Net income attributable to noncontrolling interest 2,167 1,240 Net income attributable to Rayonier Inc. $40,539 $33,843 Shares used for determining basic earnings per common share 128,801,210 123,587,901 Dilutive effect of: Stock options 78,475 106,690 Performance and restricted shares 672,712 228,275 Shares used for determining diluted earnings per common share 129,552,397 123,922,866 Basic earnings per common share attributable to Rayonier Inc.: $0.31 $0.27 Diluted earnings per common share attributable to Rayonier Inc.: $0.31 $0.27 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Three Months Ended March 31, 2018 2017 Anti-dilutive shares excluded from the computations of diluted earnings per share: Stock options 171,819 592,653 |
DERIVATIVE FINANCIAL INSTRUME38
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | The following table contains information on the outstanding interest rate swaps as of March 31, 2018 : Outstanding Interest Rate Swaps (a) Date Entered Into Term Notional Amount Related Debt Facility Fixed Rate of Swap Bank Margin on Debt Total Effective Interest Rate (b) August 2015 9 years $170,000 Term Credit Agreement 2.20 % 1.63 % 3.83 % August 2015 9 years 180,000 Term Credit Agreement 2.35 % 1.63 % 3.98 % April 2016 10 years 100,000 Incremental Term Loan 1.60 % 1.90 % 3.50 % April 2016 10 years 100,000 Incremental Term Loan 1.60 % 1.90 % 3.50 % July 2016 10 years 100,000 Incremental Term Loan 1.26 % 1.90 % 3.16 % (a) All interest rate swaps have been designated as interest rate cash flow hedges and qualify for hedge accounting. (b) Rate is before estimated patronage payments. |
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, 2018 and 2017 . Three Months Ended March 31, Income Statement Location 2018 2017 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other comprehensive income $1,233 ($71 ) Foreign currency option contracts Other comprehensive income 181 (41 ) Interest rate swaps Other comprehensive income 15,598 2,633 Derivatives designated as a net investment hedge: Foreign currency exchange contract Other comprehensive income 110 — Derivatives not designated as hedging instruments: Foreign currency exchange contracts Interest and other miscellaneous income, net 129 125 |
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, 2018 December 31, 2017 Derivatives designated as cash flow hedges: Foreign currency exchange contracts $87,400 $107,400 Foreign currency option contracts 34,000 48,000 Interest rate swaps 650,000 650,000 Derivatives designated as a net investment hedge: Foreign currency exchange contract 26,788 — Derivative not designated as a hedging instrument: Foreign currency exchange contracts 25,883 18,439 |
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, 2018 December 31, 2017 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other current assets $3,736 $2,286 Other assets 304 538 Other current liabilities (21 ) (37 ) Foreign currency option contracts Other current assets 572 389 Other assets — 137 Other current liabilities (68 ) (119 ) Other non-current liabilities — (55 ) Interest rate swaps Other assets 31,037 17,473 Other non-current liabilities — (2,033 ) Derivatives designated as net investment hedges: Foreign currency exchange contract Other current assets 110 — Derivative not designated as a hedging instrument: Foreign currency exchange contracts Other current assets 238 209 Other current liabilities (155 ) (189 ) Total derivative contracts: Other current assets $4,656 $2,884 Other assets 31,341 18,148 Total derivative assets $35,997 $21,032 Other current liabilities (244 ) (345 ) Other non-current liabilities — (2,088 ) Total derivative liabilities ($244 ) ($2,433 ) (a) See Note 13 — 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, 2018 | |
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, 2018 and December 31, 2017 , using market information and what the Company believes to be appropriate valuation methodologies under GAAP: March 31, 2018 December 31, 2017 Asset (Liability) (a) Carrying Amount Fair Value Carrying Amount Fair Value Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $92,785 $92,785 — $112,653 $112,653 — Restricted cash (b) 84,903 84,903 — 59,703 59,703 — Current maturities of long-term debt — — — (3,375 ) — (3,375 ) Long-term debt (c) (996,145 ) — (999,910 ) (1,022,004 ) — (1,030,135 ) Interest rate swaps (d) 31,037 — 31,037 15,440 — 15,440 Foreign currency exchange contracts (d) 4,212 — 4,212 2,807 — 2,807 Foreign currency option contracts (d) 505 — 505 352 — 352 (a) The Company did not have Level 3 assets or liabilities at March 31, 2018 and December 31, 2017 . (b) Restricted cash represents 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 17 — 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 12 — Derivative Financial Instruments and Hedging Activities for information regarding the Consolidated Balance Sheets classification of the Company’s derivative financial instruments. |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost | The net pension and postretirement benefit (credit) costs that have been recorded are shown in the following table: Components of Net Periodic Benefit (Credit) Cost Income Statement Location (a) Pension Postretirement Three Months Ended March 31, Three Months Ended March 31, 2018 2017 2018 2017 Components of Net Periodic Benefit (Credit) Cost Service cost Selling and general expenses — — $2 $2 Interest cost Interest and other miscellaneous income, net 751 815 12 13 Expected return on plan assets (b) Interest and other miscellaneous income, net (982 ) (945 ) — — Amortization of losses Interest and other miscellaneous income, net 159 116 1 — Net periodic benefit (credit) cost ($72 ) ($14 ) $15 $15 (a) Due to the adoption of ASU No. 2017-07, the service cost component of net periodic benefit (credit) cost is now recorded to “Selling and general expenses” in the Consolidated Statements of Income and Comprehensive Income with other compensation costs arising from services rendered by employees during the period. The other components of net periodic benefit (credit) cost (interest cost, expected return on plan assets and amortization of losses) are now recorded to “ Interest and other miscellaneous income, net ” in the Consolidated Statements of Income. Prior period amounts have been reclassified to conform to current period presentation. See Note 1 — Basis of Presentation for additional information. (b) The weighted-average expected long-term rate of return on plan assets used in computing 2018 net periodic benefit cost for pension benefits is 7.2% . |
OTHER OPERATING INCOME, NET (Ta
OTHER OPERATING INCOME, NET (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | |
Interest and Other Income | Other operating income, net comprised the following: Three Months Ended March 31, 2018 2017 Foreign currency (expense) income ($753 ) $237 Gain on sale or disposal of property and equipment 15 1 Gain on foreign currency exchange and option contracts 1,433 728 Log trading marketing fees 70 179 Income from the sale of unused Internet Protocol addresses 646 — Miscellaneous (expense) income, net (42 ) 43 Total $1,369 $1,188 |
INVENTORY (Tables)
INVENTORY (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | As of March 31, 2018 and December 31, 2017 , Rayonier’s inventory was solely comprised of finished goods, as follows: March 31, 2018 December 31, 2017 Finished goods inventory Real estate inventory (a) $12,815 $18,350 Log inventory 7,178 5,791 Total inventory $19,993 $24,141 (a) Represents cost of HBU real estate (including capitalized development investments) expected to be sold within 12 months. See Note 6 — Higher And Better Use Timberlands And Real Estate Development Investments for additional information. |
RESTRICTED CASH (Tables)
RESTRICTED CASH (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Restricted Cash and Investments [Abstract] | |
Schedule of Restricted Cash | The following table contains the amounts of restricted cash recorded in the Consolidated Balance Sheets and Consolidated Statements of Cash Flows for the three months ended March 31, 2018 : March 31, 2018 Restricted cash deposited with LKE intermediary $84,353 Restricted cash held in escrow 550 Total restricted cash shown in the Consolidated Balance Sheets 84,903 Cash and cash equivalents 92,785 Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows $177,688 |
Schedule of Cash and Cash Equivalents | The following table contains the amounts of restricted cash recorded in the Consolidated Balance Sheets and Consolidated Statements of Cash Flows for the three months ended March 31, 2018 : March 31, 2018 Restricted cash deposited with LKE intermediary $84,353 Restricted cash held in escrow 550 Total restricted cash shown in the Consolidated Balance Sheets 84,903 Cash and cash equivalents 92,785 Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows $177,688 |
ACCUMULATED OTHER COMPREHENSI44
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018 and the year ended December 31, 2017 . All amounts are presented net of tax and exclude portions attributable to noncontrolling interest. Foreign currency translation gains Net investment hedges of New Zealand JV Cash flow hedges Employee benefit plans Total Balance as of December 31, 2016 $8,559 $1,665 $10,831 ($20,199 ) $856 Other comprehensive income before reclassifications 7,416 — 7,321 (673 ) 14,064 Amounts reclassified from accumulated other comprehensive income — — (1,968 ) 465 (b) (1,503 ) Net other comprehensive income/(loss) 7,416 — 5,353 (208 ) 12,561 Balance as of December 31, 2017 $15,975 $1,665 $16,184 ($20,407 ) $13,417 Other comprehensive income before reclassifications 7,496 110 17,176 (a) — 24,782 Amounts reclassified from accumulated other comprehensive income — — (795 ) 159 (b) (636 ) Net other comprehensive income 7,496 110 16,381 159 24,146 Balance as of March 31, 2018 $23,471 $1,775 $32,565 ($20,248 ) $37,563 (a) Includes $15.6 million of other comprehensive gain related to interest rate swaps. See Note 12 — Derivative Financial Instruments and Hedging Activities for additional information. (b) This component of other comprehensive income is included in the computation of net periodic pension cost. See Note 14 — 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, 2018 and March 31, 2017 : Details about accumulated other comprehensive income components Amount reclassified from accumulated other comprehensive income Affected line item in the income statement March 31, 2018 March 31, 2017 Realized gain on foreign currency exchange contracts ($1,297 ) ($446 ) Other operating income, net Realized gain on foreign currency option contracts (136 ) (282 ) Other operating income, net Noncontrolling interest 330 168 Comprehensive income attributable to noncontrolling interest Income tax expense from gain on foreign currency contracts 308 156 Income tax expense Net gain from accumulated other comprehensive income ($795 ) ($404 ) |
CONSOLIDATING FINANCIAL STATE45
CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Consolidating Statements of Income and Comprehensive Income | CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended March 31, 2018 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated SALES — — $203,196 — $203,196 Costs and Expenses Cost of sales — — 138,488 — 138,488 Selling and general expenses — 4,389 4,614 — 9,003 Other operating expense (income), net 13 (635 ) (747 ) — (1,369 ) 13 3,754 142,355 — 146,122 OPERATING (LOSS) INCOME (13 ) (3,754 ) 60,841 — 57,074 Interest expense (3,139 ) (4,653 ) (260 ) — (8,052 ) Interest and miscellaneous income (expense), net 2,628 765 (2,773 ) — 620 Equity in income from subsidiaries 41,063 48,828 — (89,891 ) — INCOME BEFORE INCOME TAXES 40,539 41,186 57,808 (89,891 ) 49,642 Income tax expense — (123 ) (6,813 ) — (6,936 ) NET INCOME 40,539 41,063 50,995 (89,891 ) 42,706 Less: Net income attributable to noncontrolling interest — — 2,167 — 2,167 NET INCOME ATTRIBUTABLE TO RAYONIER INC. 40,539 41,063 48,828 (89,891 ) 40,539 OTHER COMPREHENSIVE INCOME Foreign currency translation adjustment, net of income tax 7,606 111 9,577 (7,606 ) 9,688 Cash flow hedges, net of income tax 16,381 15,598 1,017 (16,381 ) 16,615 Amortization of pension and postretirement plans, net of income tax 159 159 — (159 ) 159 Total other comprehensive income 24,146 15,868 10,594 (24,146 ) 26,462 COMPREHENSIVE INCOME 64,685 56,931 61,589 (114,037 ) 69,168 Less: Comprehensive income attributable to noncontrolling interest — — 4,483 — 4,483 COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. $64,685 $56,931 $57,106 ($114,037 ) $64,685 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 — — $194,491 — $194,491 Costs and Expenses Cost of sales — — 136,828 — 136,828 Selling and general expenses — 3,536 6,054 — 9,590 Other operating expense (income), net — 111 (1,299 ) — (1,188 ) — 3,647 141,583 — 145,230 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 |
Schedule of Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS As of March 31, 2018 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $34,837 $18,651 $39,297 — $92,785 Accounts receivable, less allowance for doubtful accounts 1,995 946 34,852 — 37,793 Inventory — — 19,993 — 19,993 Prepaid expenses — 882 15,554 — 16,436 Assets held for sale — — 24,552 — 24,552 Other current assets — 216 4,719 — 4,935 Total current assets 36,832 20,695 138,967 — 196,494 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — 2,424,675 — 2,424,675 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS — — 87,702 — 87,702 NET PROPERTY, PLANT AND EQUIPMENT — 17,693 5,483 — 23,176 RESTRICTED CASH — — 84,903 — 84,903 INVESTMENT IN SUBSIDIARIES 1,583,443 2,822,945 — (4,406,388 ) — INTERCOMPANY RECEIVABLE 43,396 (627,022 ) 583,626 — — OTHER ASSETS 2 26,471 34,949 — 61,422 TOTAL ASSETS $1,663,673 $2,260,782 $3,360,305 ($4,406,388 ) $2,878,372 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable — $3,453 $23,629 — $27,082 Accrued taxes — 7 3,576 — 3,583 Accrued payroll and benefits — 2,074 1,686 — 3,760 Accrued interest 6,094 2,000 6 — 8,100 Deferred revenue — — 7,901 — 7,901 Other current liabilities 1,995 546 12,550 — 15,091 Total current liabilities 8,089 8,080 49,348 — 65,517 LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS 323,526 648,619 24,000 — 996,145 PENSION AND OTHER POSTRETIREMENT BENEFITS — 31,821 (684 ) — 31,137 OTHER NON-CURRENT LIABILITIES — 7,780 41,620 — 49,400 INTERCOMPANY PAYABLE (299,715 ) (18,961 ) 318,676 — — TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,631,773 1,583,443 2,822,945 (4,406,388 ) 1,631,773 Noncontrolling interest — — 104,400 — 104,400 TOTAL SHAREHOLDERS’ EQUITY 1,631,773 1,583,443 2,927,345 (4,406,388 ) 1,736,173 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,663,673 $2,260,782 $3,360,305 ($4,406,388 ) $2,878,372 CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2017 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $48,564 $25,042 $39,047 — $112,653 Accounts receivable, less allowance for doubtful accounts — 3,726 23,967 — 27,693 Inventory — — 24,141 — 24,141 Prepaid expenses — 759 15,234 — 15,993 Other current assets — 14 3,033 — 3,047 Total current assets 48,564 29,541 105,422 — 183,527 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — 2,462,066 — 2,462,066 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS — — 80,797 — 80,797 NET PROPERTY, PLANT AND EQUIPMENT — 21 23,357 — 23,378 RESTRICTED CASH — — 59,703 — 59,703 INVESTMENT IN SUBSIDIARIES 1,531,156 2,814,408 — (4,345,564 ) — INTERCOMPANY RECEIVABLE 40,067 (628,167 ) 588,100 — — OTHER ASSETS 2 12,680 36,328 — 49,010 TOTAL ASSETS $1,619,789 $2,228,483 $3,355,773 ($4,345,564 ) $2,858,481 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable — $2,838 $22,310 — $25,148 Current maturities of long-term debt — — 3,375 — 3,375 Accrued taxes — 48 3,733 — 3,781 Accrued payroll and benefits — 5,298 4,364 — 9,662 Accrued interest 3,047 1,995 12 — 5,054 Deferred revenue — — 9,721 — 9,721 Other current liabilities — 564 11,243 — 11,807 Total current liabilities 3,047 10,743 54,758 — 68,548 LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS 323,434 663,570 35,000 — 1,022,004 PENSION AND OTHER POSTRETIREMENT BENEFITS — 32,589 (684 ) — 31,905 OTHER NON-CURRENT LIABILITIES — 9,386 33,698 — 43,084 INTERCOMPANY PAYABLE (299,715 ) (18,961 ) 318,676 — — TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,593,023 1,531,156 2,814,408 (4,345,564 ) 1,593,023 Noncontrolling interest — — 99,917 — 99,917 TOTAL SHAREHOLDERS’ EQUITY 1,593,023 1,531,156 2,914,325 (4,345,564 ) 1,692,940 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,619,789 $2,228,483 $3,355,773 ($4,345,564 ) $2,858,481 |
Schedule of Condensed Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Three Months Ended March 31, 2018 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES ($701 ) $37,055 $41,881 — $78,235 INVESTING ACTIVITIES Capital expenditures — (35 ) (13,157 ) — (13,192 ) Real estate development investments — — (2,340 ) — (2,340 ) Purchase of timberlands — — (12 ) — (12 ) Investment in subsidiaries — 31,654 — (31,654 ) — Other — — (2,105 ) — (2,105 ) CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES — 31,619 (17,614 ) (31,654 ) (17,649 ) FINANCING ACTIVITIES Repayment of debt — (26,000 ) (3,375 ) — (29,375 ) Dividends paid (32,123 ) — — — (32,123 ) Proceeds from the issuance of common shares under incentive stock plan 5,455 — — — 5,455 Repurchase of common shares under share repurchase program (18 ) — — — (18 ) Intercompany distributions 13,660 (49,065 ) 3,751 31,654 — CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES (13,026 ) (75,065 ) 376 31,654 (56,061 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH — — 807 — 807 CASH AND CASH EQUIVALENTS Change in cash and cash equivalents (13,727 ) (6,391 ) 25,450 — 5,332 Balance, beginning of year 48,564 25,042 98,750 — 172,356 Balance, end of period $34,837 $18,651 $124,200 — $177,688 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 ) Investment in subsidiaries — 2,636 — (2,636 ) — Other — — (5,617 ) — (5,617 ) CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES — 2,636 5,973 (2,636 ) 5,973 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 Issuance of intercompany notes — — — — — 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 27,490 — 173,016 Balance, beginning of year 21,453 9,461 126,703 — 157,617 Balance, end of period $157,916 $18,524 $154,193 — $330,633 |
REVENUE (Narrative) (Details)
REVENUE (Narrative) (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2018USD ($)method | Mar. 31, 2017USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Retail estate sales, deposit required | 5.00% | |
Number of sales categories | method | 2 | |
Contract duration | 1 year | |
Contract balances, recognized during period | $ | $ 6.4 | $ 4.8 |
REVENUE (Disaggregation of Reve
REVENUE (Disaggregation of Revenue by Product) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | $ 202,970 | $ 194,198 |
Other Non-Timber Sales, Primarily Lease | 226 | 293 |
Total Revenue | 203,196 | 194,491 |
Pulpwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 35,126 | 30,333 |
Sawtimber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 122,576 | 101,175 |
Hardwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 597 | 716 |
Timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 158,299 | 132,224 |
License Revenue, Primarily From Hunting | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 4,161 | 3,973 |
Other Non-Timber/Carbon Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 4,323 | 3,424 |
Agency Fee Income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 123 | 288 |
Non-timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 8,607 | 7,685 |
Southern Timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 38,935 | |
Other Non-Timber Sales, Primarily Lease | 203 | |
Total Revenue | 43,588 | 39,138 |
Southern Timber | Pulpwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 18,976 | |
Southern Timber | Sawtimber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 13,023 | |
Southern Timber | Hardwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 716 | |
Southern Timber | Timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 32,715 | |
Southern Timber | License Revenue, Primarily From Hunting | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 3,830 | |
Southern Timber | Other Non-Timber/Carbon Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 2,390 | |
Southern Timber | Agency Fee Income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | |
Southern Timber | Non-timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 6,220 | |
Pacific Northwest Timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 25,835 | |
Other Non-Timber Sales, Primarily Lease | 90 | |
Total Revenue | 31,374 | 25,925 |
Pacific Northwest Timber | Pulpwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 3,359 | |
Pacific Northwest Timber | Sawtimber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 21,433 | |
Pacific Northwest Timber | Hardwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | |
Pacific Northwest Timber | Timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 24,792 | |
Pacific Northwest Timber | License Revenue, Primarily From Hunting | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 97 | |
Pacific Northwest Timber | Other Non-Timber/Carbon Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 946 | |
Pacific Northwest Timber | Agency Fee Income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | |
Pacific Northwest Timber | Non-timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 1,043 | |
New Zealand Timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 40,874 | |
Other Non-Timber Sales, Primarily Lease | 0 | |
Total Revenue | 52,964 | 40,874 |
New Zealand Timber | Pulpwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 5,161 | |
New Zealand Timber | Sawtimber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 35,579 | |
New Zealand Timber | Hardwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | |
New Zealand Timber | Timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 40,740 | |
New Zealand Timber | License Revenue, Primarily From Hunting | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 46 | |
New Zealand Timber | Other Non-Timber/Carbon Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 88 | |
New Zealand Timber | Agency Fee Income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | |
New Zealand Timber | Non-timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 134 | |
Real Estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 36,064 | 54,289 |
Other Non-Timber Sales, Primarily Lease | 0 | |
Total Revenue | 36,064 | 54,289 |
Real Estate | Large Dispositions | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | 41,951 |
Real Estate | Improved Development | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 1,121 | 0 |
Real Estate | Unimproved Development | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 7,446 | 0 |
Real Estate | Rural | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 1,652 | 6,739 |
Real Estate | Non-strategic / Timberlands | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 25,845 | 5,599 |
Trading | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 34,265 | |
Other Non-Timber Sales, Primarily Lease | 0 | |
Total Revenue | 39,212 | 34,265 |
Trading | Pulpwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 2,837 | |
Trading | Sawtimber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 31,140 | |
Trading | Hardwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | |
Trading | Timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 33,977 | |
Trading | License Revenue, Primarily From Hunting | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | |
Trading | Other Non-Timber/Carbon Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | |
Trading | Agency Fee Income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 288 | |
Trading | Non-timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 288 | |
Operating Segments | Southern Timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 43,419 | |
Other Non-Timber Sales, Primarily Lease | 169 | |
Operating Segments | Southern Timber | Pulpwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 21,606 | |
Operating Segments | Southern Timber | Sawtimber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 15,937 | |
Operating Segments | Southern Timber | Hardwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 597 | |
Operating Segments | Southern Timber | Timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 38,140 | |
Operating Segments | Southern Timber | License Revenue, Primarily From Hunting | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 4,084 | |
Operating Segments | Southern Timber | Other Non-Timber/Carbon Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 1,195 | |
Operating Segments | Southern Timber | Agency Fee Income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | |
Operating Segments | Southern Timber | Non-timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 5,279 | |
Operating Segments | Pacific Northwest Timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 31,317 | |
Other Non-Timber Sales, Primarily Lease | 57 | |
Operating Segments | Pacific Northwest Timber | Pulpwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 3,419 | |
Operating Segments | Pacific Northwest Timber | Sawtimber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 27,068 | |
Operating Segments | Pacific Northwest Timber | Hardwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | |
Operating Segments | Pacific Northwest Timber | Timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 30,487 | |
Operating Segments | Pacific Northwest Timber | License Revenue, Primarily From Hunting | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 25 | |
Operating Segments | Pacific Northwest Timber | Other Non-Timber/Carbon Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 805 | |
Operating Segments | Pacific Northwest Timber | Agency Fee Income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | |
Operating Segments | Pacific Northwest Timber | Non-timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 830 | |
Operating Segments | New Zealand Timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 52,964 | |
Other Non-Timber Sales, Primarily Lease | 0 | |
Operating Segments | New Zealand Timber | Pulpwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 5,844 | |
Operating Segments | New Zealand Timber | Sawtimber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 44,745 | |
Operating Segments | New Zealand Timber | Hardwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | |
Operating Segments | New Zealand Timber | Timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 50,589 | |
Operating Segments | New Zealand Timber | License Revenue, Primarily From Hunting | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 52 | |
Operating Segments | New Zealand Timber | Other Non-Timber/Carbon Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 2,323 | |
Operating Segments | New Zealand Timber | Agency Fee Income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | |
Operating Segments | New Zealand Timber | Non-timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 2,375 | |
Operating Segments | Real Estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 36,064 | |
Other Non-Timber Sales, Primarily Lease | 0 | |
Operating Segments | Real Estate | Large Dispositions | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | |
Operating Segments | Real Estate | Improved Development | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 1,121 | |
Operating Segments | Real Estate | Unimproved Development | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 7,446 | |
Operating Segments | Real Estate | Rural | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 1,652 | |
Operating Segments | Real Estate | Non-strategic / Timberlands | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 25,845 | |
Operating Segments | Trading | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 39,206 | |
Other Non-Timber Sales, Primarily Lease | 0 | |
Operating Segments | Trading | Pulpwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 4,257 | |
Operating Segments | Trading | Sawtimber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 34,826 | |
Operating Segments | Trading | Hardwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | |
Operating Segments | Trading | Timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 39,083 | |
Operating Segments | Trading | License Revenue, Primarily From Hunting | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | |
Operating Segments | Trading | Other Non-Timber/Carbon Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | |
Operating Segments | Trading | Agency Fee Income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 123 | |
Operating Segments | Trading | Non-timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 123 | |
Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | (6) | $ 0 |
Intersegment Eliminations | Trading | ||
Disaggregation of Revenue [Line Items] | ||
Total Revenue | $ 6 |
REVENUE (Revenue Recognition fo
REVENUE (Revenue Recognition for Timber Sales) (Details) | 3 Months Ended |
Mar. 31, 2018 | |
Stumpage Pay-as-Cut | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Payment period after satisfaction of obligation | 10 days |
Total Delivered | Domestic | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Payment period after satisfaction of obligation | 30 days |
Payment period after satisfaction of obligation, letter of credit | 30 days |
Minimum | Stumpage Pay-as-Cut | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Initial payment, percentage of estimated contract value | 5.00% |
Maximum | Stumpage Pay-as-Cut | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Initial payment, percentage of estimated contract value | 20.00% |
REVENUE (Disaggregation of Re49
REVENUE (Disaggregation of Revenue by Contract Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | $ 202,970 | $ 194,198 |
Stumpage Pay-as-Cut | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 22,511 | 20,102 |
Stumpage Lump Sum | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 6,924 | 5,377 |
Stumpage Agreed Volume | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 0 | 1,180 |
Total Stumpage | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 29,435 | 26,659 |
Total Delivered | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 128,864 | 105,565 |
Total Delivered | Domestic | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 59,798 | 50,700 |
Total Delivered | Export | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 69,066 | 54,865 |
Timber | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 158,299 | 132,224 |
Southern Timber | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 38,935 | |
Southern Timber | Stumpage Pay-as-Cut | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 22,511 | 20,102 |
Southern Timber | Stumpage Lump Sum | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 1,818 | 2,797 |
Southern Timber | Stumpage Agreed Volume | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 0 | 0 |
Southern Timber | Total Stumpage | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 24,329 | 22,899 |
Southern Timber | Total Delivered | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 13,811 | 9,816 |
Southern Timber | Total Delivered | Domestic | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 13,377 | 9,816 |
Southern Timber | Total Delivered | Export | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 434 | 0 |
Southern Timber | Timber | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 32,715 | |
Pacific Northwest Timber | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 25,835 | |
Pacific Northwest Timber | Stumpage Pay-as-Cut | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 0 | 0 |
Pacific Northwest Timber | Stumpage Lump Sum | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 5,106 | 2,580 |
Pacific Northwest Timber | Stumpage Agreed Volume | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 0 | 1,180 |
Pacific Northwest Timber | Total Stumpage | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 5,106 | 3,760 |
Pacific Northwest Timber | Total Delivered | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 25,381 | 21,032 |
Pacific Northwest Timber | Total Delivered | Domestic | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 25,381 | 21,032 |
Pacific Northwest Timber | Total Delivered | Export | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 0 | 0 |
Pacific Northwest Timber | Timber | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 24,792 | |
New Zealand Timber | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 40,874 | |
New Zealand Timber | Stumpage Pay-as-Cut | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 0 | 0 |
New Zealand Timber | Stumpage Lump Sum | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 0 | 0 |
New Zealand Timber | Stumpage Agreed Volume | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 0 | 0 |
New Zealand Timber | Total Stumpage | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 0 | 0 |
New Zealand Timber | Total Delivered | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 50,589 | 40,740 |
New Zealand Timber | Total Delivered | Domestic | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 20,103 | 18,845 |
New Zealand Timber | Total Delivered | Export | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 30,486 | 21,895 |
New Zealand Timber | Timber | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 40,740 | |
Trading | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 34,265 | |
Trading | Stumpage Pay-as-Cut | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 0 | 0 |
Trading | Stumpage Lump Sum | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 0 | 0 |
Trading | Stumpage Agreed Volume | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 0 | 0 |
Trading | Total Stumpage | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 0 | 0 |
Trading | Total Delivered | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 39,083 | 33,977 |
Trading | Total Delivered | Domestic | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 937 | 1,007 |
Trading | Total Delivered | Export | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | $ 38,146 | 32,970 |
Trading | Timber | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | $ 33,977 |
JOINT VENTURE INVESTMENT (Detai
JOINT VENTURE INVESTMENT (Details) - Matariki Forestry Group | Mar. 31, 2018a |
Schedule of Equity Method Investments [Line Items] | |
Acres of timberland owned (acres) | 410,000 |
Step acquisition percentage equity interest in acquiree | 23.00% |
SEGMENT AND GEOGRAPHICAL INFO51
SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Segment Sales) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
SALES | $ 203,196 | $ 194,491 |
Southern Timber | ||
Segment Reporting Information [Line Items] | ||
SALES | 43,588 | 39,138 |
Pacific Northwest Timber | ||
Segment Reporting Information [Line Items] | ||
SALES | 31,374 | 25,925 |
New Zealand Timber | ||
Segment Reporting Information [Line Items] | ||
SALES | 52,964 | 40,874 |
Real Estate | ||
Segment Reporting Information [Line Items] | ||
SALES | 36,064 | 54,289 |
Trading | ||
Segment Reporting Information [Line Items] | ||
SALES | 39,212 | 34,265 |
Large Dispositions | Real Estate | Large Dispositions | ||
Segment Reporting Information [Line Items] | ||
SALES | 42,000 | |
Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
SALES | (6) | $ 0 |
Intersegment Eliminations | Trading | ||
Segment Reporting Information [Line Items] | ||
SALES | $ 6 |
SEGMENT AND GEOGRAPHICAL INFO52
SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Operating Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Total Operating Income | $ 57,074 | $ 49,261 |
Unallocated interest expense and other | (7,432) | (7,897) |
INCOME BEFORE INCOME TAXES | 49,642 | 41,364 |
Real Estate | Large Dispositions | Timberland | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | (28,200) | |
Operating Segments | Southern Timber | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | 12,227 | 13,939 |
Operating Segments | Pacific Northwest Timber | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | 4,674 | (878) |
Operating Segments | New Zealand Timber | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | 15,957 | 10,243 |
Operating Segments | Real Estate | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | 28,054 | 29,665 |
Operating Segments | Trading | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | 149 | 1,097 |
Corporate and other | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | $ (3,987) | $ (4,805) |
SEGMENT AND GEOGRAPHICAL INFO53
SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Depreciation, Depletion and Amortization) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
DEPRECIATION, DEPLETION AND AMORTIZATION | $ 34,537 | $ 38,876 |
Real Estate | Large 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 | 15,979 | 12,452 |
Operating Segments | Pacific Northwest Timber | ||
Segment Reporting Information [Line Items] | ||
DEPRECIATION, DEPLETION AND AMORTIZATION | 9,504 | 10,210 |
Operating Segments | New Zealand Timber | ||
Segment Reporting Information [Line Items] | ||
DEPRECIATION, DEPLETION AND AMORTIZATION | 5,717 | 5,407 |
Operating Segments | Real Estate | ||
Segment Reporting Information [Line Items] | ||
DEPRECIATION, DEPLETION AND AMORTIZATION | 3,066 | 10,707 |
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 | $ 271 | $ 100 |
SEGMENT AND GEOGRAPHICAL INFO54
SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Non-Cash Cost of Land and Improved Development) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT | $ 1,624 | $ 10,222 |
Southern Timber | ||
Segment Reporting Information [Line Items] | ||
NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT | 0 | 0 |
Pacific Northwest Timber | ||
Segment Reporting Information [Line Items] | ||
NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT | 0 | 0 |
New Zealand Timber | ||
Segment Reporting Information [Line Items] | ||
NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT | 0 | 0 |
Real Estate | ||
Segment Reporting Information [Line Items] | ||
NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT | 1,624 | 10,222 |
Real Estate | Timberland | Large Dispositions | ||
Segment Reporting Information [Line Items] | ||
NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT | 5,700 | |
Trading | ||
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, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Total debt | $ 999,000 | |
Less: Deferred financing costs | (2,855) | |
Long-term debt, net of deferred financing costs | 996,145 | $ 1,022,004 |
Term Credit Agreement borrowings due 2024 at a variable interest rate of 2.9% at September 30, 2017 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 350,000 | |
Effective interest rate | 3.30% | |
Debt instrument, interest rate during period | 3.30% | |
Term Credit Agreement borrowings due 2024 at a variable interest rate of 2.9% at September 30, 2017 | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis points on periodic interest rate | 1.625% | |
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 3.1% at September 30, 2017 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 300,000 | |
Effective interest rate | 3.60% | |
Debt instrument, interest rate during period | 2.80% | |
Incremental Term Loan Agreement borrowings due 2026 at a variable interest rate of 3.1% at September 30, 2017 | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis points on periodic interest rate | 1.90% | |
Revolving Credit Facility borrowings due 2020 at an average variable interest rate of 3.1% at March 31, 2018 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 24,000 | |
Effective interest rate | 3.10% |
DEBT (Schedule of Long Term Mat
DEBT (Schedule of Long Term Maturities) (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
2,018 | $ 0 |
2,019 | 0 |
2,020 | 24,000 |
2,021 | 0 |
2,022 | 325,000 |
Thereafter | 650,000 |
Total Debt | $ 999,000 |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2018 | Apr. 28, 2016 | Aug. 31, 2015 | Aug. 05, 2015 | |
Debt Instrument [Line Items] | ||||
Total debt | $ 999,000,000 | |||
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 | |||
Revolving Credit Facility borrowings due 2020 at an average variable interest rate of 3.1% at March 31, 2018 | ||||
Debt Instrument [Line Items] | ||||
Repayments of line of credit | 26,000,000 | |||
Remaining borrowing capacity | 165,600,000 | |||
Total debt | 24,000,000 | |||
Incremental Term Loan Agreement | ||||
Debt Instrument [Line Items] | ||||
Total debt | $ 300,000,000 | |||
Standby Letters of Credit | Revolving Credit Facility borrowings due 2020 at an average variable interest rate of 3.1% at March 31, 2018 | ||||
Debt Instrument [Line Items] | ||||
Amount to secure outstanding letters of credit | $ 10,400,000 |
HIGHER AND BETTER USE TIMBERL58
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Real Estate, Land and Land Development Costs [Roll Forward] | |
Non-current portion, Beginning Balance | $ 80,797 |
Plus: Current portion, Beginning Balance | 18,350 |
Total Balance, Beginning Balance | 99,147 |
Non-cash cost of land and improved development | (1,485) |
Timber depletion from harvesting activities and basis of timber sold in real estate sales | (258) |
Capitalized real estate development investments | 2,340 |
Intersegment transfers | 773 |
Total Balance, Ending Balance | 100,517 |
Less: Current portion, Ending Balance | (12,815) |
Non-current portion, Ending Balance | 87,702 |
Capitalized interest | 200 |
Land and Timber | |
Real Estate, Land and Land Development Costs [Roll Forward] | |
Non-current portion, Beginning Balance | 59,653 |
Plus: Current portion, Beginning Balance | 6,702 |
Total Balance, Beginning Balance | 66,355 |
Non-cash cost of land and improved development | (486) |
Timber depletion from harvesting activities and basis of timber sold in real estate sales | (258) |
Capitalized real estate development investments | 0 |
Intersegment transfers | 773 |
Total Balance, Ending Balance | 66,384 |
Less: Current portion, Ending Balance | (3,828) |
Non-current portion, Ending Balance | 62,556 |
Development Investments | |
Real Estate, Land and Land Development Costs [Roll Forward] | |
Non-current portion, Beginning Balance | 21,144 |
Plus: Current portion, Beginning Balance | 11,648 |
Total Balance, Beginning Balance | 32,792 |
Non-cash cost of land and improved development | (999) |
Timber depletion from harvesting activities and basis of timber sold in real estate sales | 0 |
Capitalized real estate development investments | 2,340 |
Intersegment transfers | 0 |
Total Balance, Ending Balance | 34,133 |
Less: Current portion, Ending Balance | (8,987) |
Non-current portion, Ending Balance | $ 25,146 |
COMMITMENTS (Narrative) (Detail
COMMITMENTS (Narrative) (Details) - Timberland Leases | 3 Months Ended |
Mar. 31, 2018 | |
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, 2018USD ($)lease | |
Commitments | |
Remaining 2,018 | $ 6,996 |
2,019 | 4,279 |
2,020 | 3,982 |
2,021 | 1,877 |
2,022 | 1,539 |
Thereafter | 1,507 |
Commitments, total | 20,180 |
Total | |
Remaining 2,018 | 15,289 |
2,019 | 14,615 |
2,020 | 13,861 |
2,021 | 11,460 |
2,022 | 11,062 |
Thereafter | 159,378 |
Total | 225,665 |
Pension contribution requirements remaining in fiscal year | $ 2,400 |
Matariki Crown Forest Licenses | |
Total | |
Future minimum payments | 20 years |
Number of leases under termination notice | lease | 3 |
Number of leases expiring in 2062 | lease | 2 |
Operating Leases | |
Leases | |
Remaining 2,018 | $ 878 |
2,019 | 947 |
2,020 | 755 |
2,021 | 636 |
2,022 | 629 |
Thereafter | 703 |
Operating leases, total | 4,548 |
Timberland Leases | |
Leases | |
Remaining 2,018 | 7,415 |
2,019 | 9,389 |
2,020 | 9,124 |
2,021 | 8,947 |
2,022 | 8,894 |
Thereafter | 157,168 |
Operating leases, total | $ 200,937 |
Timberland Leases | Matariki Crown Forest Licenses | |
Total | |
Operating lease, termination notice | 35 years |
Operating lease, renewal term | 1 year |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Income tax benefit (expense) | $ (6,936) | $ (6,281) | |
U.S. federal statutory tax rate, percentage | 21.00% | ||
Effective income tax rate | 13.90% | 15.60% | |
Income tax provision related to Tax Cuts and Jobs Act | $ 100 | ||
Global intangible low-taxed income | $ 800 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) $ in Thousands | Oct. 13, 2017claim | Mar. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | ||
Number of claims filed | claim | 1 | |
Insurance settlement payable | $ | $ 1,995 |
GUARANTEES (Details)
GUARANTEES (Details) $ in Thousands | Mar. 31, 2018USD ($) |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | $ 13,891 |
Carrying Amount of Associated Liability | 43 |
Standby letters of credit | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | 10,353 |
Carrying Amount of Associated Liability | 0 |
Letter of credit for development project | 9,200 |
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 | 1,284 |
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, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Net income | $ 42,706 | $ 35,083 | $ 161,579 |
Less: Net income attributable to noncontrolling interest | 2,167 | 1,240 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | $ 40,539 | $ 33,843 | |
Shares used for determining basic earnings per common share (in shares) | 128,801,210 | 123,587,901 | |
Dilutive effect of: | |||
Stock options (in shares) | 78,475 | 106,690 | |
Performance and restricted shares (in shares) | 672,712 | 228,275 | |
Shares used for determining diluted earnings per common share (in shares) | 129,552,397 | 123,922,866 | |
Basic earnings per common share attributable to Rayonier Inc. (in dollars per share) | $ 0.31 | $ 0.27 | |
Diluted earnings per common share attributable to Rayonier Inc. (in dollars per share) | $ 0.31 | $ 0.27 |
EARNINGS PER COMMON SHARE (Anti
EARNINGS PER COMMON SHARE (Antidilutive Securities) (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from the computations of diluted earnings per share | 171,819 | 592,653 |
DERIVATIVE FINANCIAL INSTRUME66
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Narrative) (Details) $ in Thousands, $ in Millions | 3 Months Ended | |||
Mar. 31, 2018USD ($) | Mar. 31, 2017USD ($) | Mar. 31, 2018NZD ($) | Dec. 31, 2017USD ($) | |
Foreign currency exchange contracts | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 37 | |||
Not Designated as Hedging Instrument | Foreign currency exchange contracts | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 25,883 | $ 18,439 | ||
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 | 3,000 | |||
Cash Flow Hedging | Designated as Hedging Instrument | Foreign currency exchange contracts | ||||
Derivative [Line Items] | ||||
Notional Amount | $ 87,400 | $ 107,400 | ||
New Zealand JV | Forecasted Sales and Purchases, term 1 | ||||
Derivative [Line Items] | ||||
Length of time, foreign currency cash flow hedge | 3 months | |||
New Zealand JV | Minimum | ||||
Derivative [Line Items] | ||||
Percent of forecast sales and purchases hedged for 3 months | 35.00% | 35.00% | ||
Percent of forecast sales and purchases hedged for three to 12 months | 25.00% | 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 currency exchange contracts | ||||
Derivative [Line Items] | ||||
Percent of forecast distributions hedged for the next 3 months | 60.00% | 60.00% | ||
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% | 90.00% | ||
Percent of forecast sales and purchases hedged for three to 12 months | 75.00% | 75.00% | ||
Percent of forecast sales and purchases hedged for 12 to 18 months | 50.00% | 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 currency exchange contracts | ||||
Derivative [Line Items] | ||||
Percent of forecast distributions hedged for the next 3 months | 100.00% | 100.00% | ||
Percent of forecast distributions hedged for 6 months | 75.00% | 75.00% | ||
Percent of forecast distributions hedged for 6 to 12 months | 50.00% | 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 and other miscellaneous income, net | Not Designated as Hedging Instrument | Foreign currency exchange contracts | ||||
Derivative [Line Items] | ||||
Non-designated hedged item, gain (loss) recognized in income | $ 129 | $ 125 |
DERIVATIVE FINANCIAL INSTRUME67
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Interest Rate Swaps) (Details) - Cash Flow Hedging - Designated as Hedging Instrument | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Interest Rate Swap 1 | |
Derivative [Line Items] | |
Term | 9 years |
Notional Amount | $ 170,000 |
Fixed Rate of Swap | 2.20% |
Bank Margin on Debt | 1.63% |
Total Effective Interest Rate | 3.83% |
Interest Rate Swap 2 | |
Derivative [Line Items] | |
Term | 9 years |
Notional Amount | $ 180,000 |
Fixed Rate of Swap | 2.35% |
Bank Margin on Debt | 1.63% |
Total Effective Interest Rate | 3.98% |
Interest Rate Swap 3 | |
Derivative [Line Items] | |
Term | 10 years |
Notional Amount | $ 100,000 |
Fixed Rate of Swap | 1.60% |
Bank Margin on Debt | 1.90% |
Total Effective Interest Rate | 3.50% |
Interest Rate Swap 4 | |
Derivative [Line Items] | |
Term | 10 years |
Notional Amount | $ 100,000 |
Fixed Rate of Swap | 1.60% |
Bank Margin on Debt | 1.90% |
Total Effective Interest Rate | 3.50% |
Interest Rate Swap 5 | |
Derivative [Line Items] | |
Term | 10 years |
Notional Amount | $ 100,000 |
Fixed Rate of Swap | 1.26% |
Bank Margin on Debt | 1.90% |
Total Effective Interest Rate | 3.16% |
DERIVATIVE FINANCIAL INSTRUME68
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Income Statement Location) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
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 | $ 1,233 | $ (71) |
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 | 110 | 0 |
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 | 181 | (41) |
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 | 15,598 | 2,633 |
Not Designated as Hedging Instrument | Foreign currency exchange contracts | Interest and other miscellaneous income, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Non-designated hedged item, gain (loss) recognized in income | $ 129 | $ 125 |
DERIVATIVE FINANCIAL INSTRUME69
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Notional Amounts) (Details) $ in Thousands, $ in Millions | Mar. 31, 2018USD ($) | Mar. 31, 2018NZD ($) | Dec. 31, 2017USD ($) |
Foreign currency exchange contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | $ 37 | ||
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency exchange contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | $ 87,400 | $ 107,400 | |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency option contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 34,000 | 48,000 | |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 650,000 | 650,000 | |
Designated as Hedging Instrument | Net Investment Hedging | Foreign currency exchange contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | 26,788 | 0 | |
Not Designated as Hedging Instrument | Foreign currency exchange contracts | |||
Derivatives, Fair Value [Line Items] | |||
Notional Amount | $ 25,883 | $ 18,439 |
DERIVATIVE FINANCIAL INSTRUME70
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Balance Sheet Location) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | $ 35,997 | $ 21,032 |
Fair value, derivative liability | (244) | (2,433) |
Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 4,656 | 2,884 |
Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 31,341 | 18,148 |
Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (244) | (345) |
Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | 0 | (2,088) |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 3,736 | 2,286 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency exchange contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 304 | 538 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency exchange contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (21) | (37) |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency option contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 572 | 389 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency option contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 0 | 137 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency option contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (68) | (119) |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency option contracts | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | 0 | (55) |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 31,037 | 17,473 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | 0 | (2,033) |
Designated as Hedging Instrument | Net Investment Hedging | Foreign currency exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 110 | 0 |
Not Designated as Hedging Instrument | Foreign currency exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 238 | 209 |
Not Designated as Hedging Instrument | Foreign currency exchange contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | $ 155 | $ (189) |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 92,785 | $ 112,653 |
Restricted cash | 84,903 | 59,703 |
Current maturities of long-term debt | 0 | (3,375) |
Long-term debt | (996,145) | (1,022,004) |
Carrying Amount | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 31,037 | 15,440 |
Carrying Amount | Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 4,212 | 2,807 |
Carrying Amount | Foreign currency option contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 505 | 352 |
Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 92,785 | 112,653 |
Restricted cash | 84,903 | 59,703 |
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 | 0 | (3,375) |
Long-term debt | (999,910) | (1,030,135) |
Fair Value | Level 2 | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 31,037 | 15,440 |
Fair Value | Level 2 | Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | 4,212 | 2,807 |
Fair Value | Level 2 | Foreign currency option contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts | $ 505 | $ 352 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)pension_plan | Mar. 31, 2017USD ($) | |
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] | ||
Pension contributions paid | $ 500 | |
Minimum annual pension contribution | 2,900 | |
Service cost | 0 | $ 0 |
Interest cost | 751 | 815 |
Expected return on plan assets | (982) | (945) |
Amortization of losses | 159 | 116 |
Net periodic benefit (credit) cost | (72) | (14) |
Postretirement | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 2 | 2 |
Interest cost | 12 | 13 |
Expected return on plan assets | 0 | 0 |
Amortization of losses | 1 | 0 |
Net periodic benefit (credit) cost | $ 15 | $ 15 |
OTHER OPERATING INCOME, NET (De
OTHER OPERATING INCOME, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Other Income and Expenses [Abstract] | ||
Foreign currency (expense) income | $ (753) | $ 237 |
Gain on sale or disposal of property and equipment | 15 | 1 |
Gain on foreign currency exchange and option contracts | 1,433 | 728 |
Log trading marketing fees | 70 | 179 |
Income from the sale of unused Internet Protocol addresses | 646 | 0 |
Miscellaneous (expense) income, net | (42) | 43 |
Total | $ 1,369 | $ 1,188 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Inventory [Line Items] | ||
Inventory | $ 19,993 | $ 24,141 |
Real Estate Inventory | ||
Inventory [Line Items] | ||
Inventory | 12,815 | 18,350 |
Log inventory | ||
Inventory [Line Items] | ||
Inventory | $ 7,178 | $ 5,791 |
RESTRICTED CASH - Narrative (De
RESTRICTED CASH - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Restricted Cash and Investments [Abstract] | ||
Maximum time period proceeds from LKE sale maintained with third party intermediary, days | 180 days | |
Restricted deposits | $ 84.9 | $ 59.7 |
RESTRICTED CASH - Schedule of R
RESTRICTED CASH - Schedule of Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Total restricted cash shown in the Consolidated Balance Sheets | $ 84,903 | $ 59,703 | |||
Cash and cash equivalents | 92,785 | 112,653 | |||
Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows | [1] | 177,688 | $ 172,356 | $ 330,633 | $ 157,617 |
Deposited with intermediary | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Total restricted cash shown in the Consolidated Balance Sheets | 84,353 | ||||
Held in escrow | |||||
Restricted Cash and Cash Equivalents Items [Line Items] | |||||
Total restricted cash shown in the Consolidated Balance Sheets | $ 550 | ||||
[1] | Due to the adoption of ASU No. 2016-18, restricted cash is now included with cash and cash equivalents when reconciling the beginning-of-year and end-of-period total amounts shown and therefore changes in restricted cash are no longer reported as investing activities. Prior period amounts have been restated to conform to current period presentation. For additional information and a reconciliation of cash, see |
ASSETS HELD FOR SALE (Details)
ASSETS HELD FOR SALE (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | ||
Assets held for sale | $ 24,552,000 | $ 0 |
Asset impairment recognized | $ 0 |
ACCUMULATED OTHER COMPREHENSI78
ACCUMULATED OTHER COMPREHENSIVE INCOME (Schedule of Components) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | $ 1,692,940 | $ 1,496,752 | $ 1,496,752 |
Other comprehensive income before reclassifications | 24,782 | 14,064 | |
Amounts reclassified from accumulated other comprehensive income | (636) | (1,503) | |
Net other comprehensive income/(loss) | 24,146 | 12,561 | |
Ending balance | 1,736,173 | 1,692,940 | |
Foreign currency translation gains | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 15,975 | 8,559 | 8,559 |
Other comprehensive income before reclassifications | 7,496 | 7,416 | |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | |
Net other comprehensive income/(loss) | 7,496 | 7,416 | |
Ending balance | 23,471 | 15,975 | |
Net investment hedges of New Zealand JV | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 1,665 | 1,665 | 1,665 |
Other comprehensive income before reclassifications | 110 | 0 | |
Amounts reclassified from accumulated other comprehensive income | 0 | 0 | |
Net other comprehensive income/(loss) | 110 | 0 | |
Ending balance | 1,775 | 1,665 | |
Cash flow hedges | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 16,184 | 10,831 | 10,831 |
Other comprehensive income before reclassifications | 17,176 | 7,321 | |
Amounts reclassified from accumulated other comprehensive income | (795) | (404) | (1,968) |
Net other comprehensive income/(loss) | 16,381 | 5,353 | |
Ending balance | 32,565 | 16,184 | |
Cash flow hedges | Interest rate swaps | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Other comprehensive income before reclassifications | 15,600 | ||
Employee benefit plans | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | (20,407) | (20,199) | (20,199) |
Other comprehensive income before reclassifications | 0 | (673) | |
Amounts reclassified from accumulated other comprehensive income | 159 | 465 | |
Net other comprehensive income/(loss) | 159 | (208) | |
Ending balance | (20,248) | (20,407) | |
Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||
Beginning balance | 13,417 | $ 856 | 856 |
Ending balance | $ 37,563 | $ 13,417 |
ACCUMULATED OTHER COMPREHENSI79
ACCUMULATED OTHER COMPREHENSIVE INCOME (Reclassified AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other operating income, net | $ 1,369 | $ 1,188 | |
Comprehensive income attributable to noncontrolling interest | (4,483) | (1,651) | |
Income tax benefit (expense) | (6,936) | (6,281) | |
Net gain from accumulated other comprehensive income | (636) | $ (1,503) | |
Cash flow hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net gain from accumulated other comprehensive income | (795) | (404) | $ (1,968) |
Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Comprehensive income attributable to noncontrolling interest | 330 | 168 | |
Income tax benefit (expense) | 308 | 156 | |
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 | (1,297) | (446) | |
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 | $ (136) | $ (282) |
CONSOLIDATING FINANCIAL STATE80
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 STATE81
CONSOLIDATING FINANCIAL STATEMENTS (Income and Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Costs and Expenses | |||
Cost of sales | $ 138,488 | $ 136,828 | |
Selling and general expenses | 9,003 | 9,590 | |
Other operating expense (income), net | (1,369) | (1,188) | |
Costs and Expenses, Total | 146,122 | 145,230 | |
OPERATING INCOME | 57,074 | 49,261 | |
Interest expense | (8,052) | (8,415) | |
Interest and miscellaneous income (expense), net | 620 | 518 | |
Equity in income from subsidiaries | 0 | 0 | |
INCOME BEFORE INCOME TAXES | 49,642 | 41,364 | |
Income tax benefit (expense) | (6,936) | (6,281) | |
NET INCOME | 42,706 | 35,083 | $ 161,579 |
Less: Net income attributable to noncontrolling interest | 2,167 | 1,240 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 40,539 | 33,843 | |
Foreign currency translation adjustment | 9,688 | 2,432 | 9,114 |
Cash flow hedges, net of income tax | 16,615 | 2,553 | 5,693 |
Amortization of pension and postretirement plans, net of income tax | 159 | 116 | $ (208) |
Total other comprehensive income | 26,462 | 5,101 | |
COMPREHENSIVE INCOME | 69,168 | 40,184 | |
Less: Comprehensive income attributable to noncontrolling interest | 4,483 | 1,651 | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | 64,685 | 38,533 | |
Consolidating Adjustments | |||
Condensed Statement of Income Captions [Line Items] | |||
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 | (89,891) | (77,524) | |
INCOME BEFORE INCOME TAXES | (89,891) | (77,524) | |
Income tax benefit (expense) | 0 | 0 | |
NET INCOME | (89,891) | (77,524) | |
Less: Net income attributable to noncontrolling interest | 0 | 0 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | (89,891) | (77,524) | |
Foreign currency translation adjustment | (7,606) | (2,002) | |
Cash flow hedges, net of income tax | (16,381) | (2,572) | |
Amortization of pension and postretirement plans, net of income tax | (159) | (116) | |
Total other comprehensive income | (24,146) | (4,690) | |
COMPREHENSIVE INCOME | (114,037) | (82,214) | |
Less: Comprehensive income attributable to noncontrolling interest | 0 | 0 | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | (114,037) | (82,214) | |
Rayonier Inc. (Parent Issuer) | Reportable Legal Entities | |||
Condensed Statement of Income Captions [Line Items] | |||
SALES | 0 | 0 | |
Costs and Expenses | |||
Cost of sales | 0 | 0 | |
Selling and general expenses | 0 | 0 | |
Other operating expense (income), net | 13 | 0 | |
Costs and Expenses, Total | 13 | 0 | |
OPERATING INCOME | (13) | 0 | |
Interest expense | (3,139) | (3,139) | |
Interest and miscellaneous income (expense), net | 2,628 | 2,202 | |
Equity in income from subsidiaries | 41,063 | 34,780 | |
INCOME BEFORE INCOME TAXES | 40,539 | 33,843 | |
Income tax benefit (expense) | 0 | 0 | |
NET INCOME | 40,539 | 33,843 | |
Less: Net income attributable to noncontrolling interest | 0 | 0 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 40,539 | 33,843 | |
Foreign currency translation adjustment | 7,606 | 2,002 | |
Cash flow hedges, net of income tax | 16,381 | 2,572 | |
Amortization of pension and postretirement plans, net of income tax | 159 | 116 | |
Total other comprehensive income | 24,146 | 4,690 | |
COMPREHENSIVE INCOME | 64,685 | 38,533 | |
Less: Comprehensive income attributable to noncontrolling interest | 0 | 0 | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | 64,685 | 38,533 | |
Subsidiary Guarantors | Reportable Legal Entities | |||
Condensed Statement of Income Captions [Line Items] | |||
SALES | 0 | 0 | |
Costs and Expenses | |||
Cost of sales | 0 | 0 | |
Selling and general expenses | 4,389 | 3,536 | |
Other operating expense (income), net | (635) | 111 | |
Costs and Expenses, Total | 3,754 | 3,647 | |
OPERATING INCOME | (3,754) | (3,647) | |
Interest expense | (4,653) | (4,858) | |
Interest and miscellaneous income (expense), net | 765 | 689 | |
Equity in income from subsidiaries | 48,828 | 42,744 | |
INCOME BEFORE INCOME TAXES | 41,186 | 34,928 | |
Income tax benefit (expense) | (123) | (148) | |
NET INCOME | 41,063 | 34,780 | |
Less: Net income attributable to noncontrolling interest | 0 | 0 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 41,063 | 34,780 | |
Foreign currency translation adjustment | 111 | 0 | |
Cash flow hedges, net of income tax | 15,598 | 2,633 | |
Amortization of pension and postretirement plans, net of income tax | 159 | 116 | |
Total other comprehensive income | 15,868 | 2,749 | |
COMPREHENSIVE INCOME | 56,931 | 37,529 | |
Less: Comprehensive income attributable to noncontrolling interest | 0 | 0 | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | 56,931 | 37,529 | |
Non- guarantors | Reportable Legal Entities | |||
Condensed Statement of Income Captions [Line Items] | |||
SALES | 203,196 | 194,491 | |
Costs and Expenses | |||
Cost of sales | 138,488 | 136,828 | |
Selling and general expenses | 4,614 | 6,054 | |
Other operating expense (income), net | (747) | (1,299) | |
Costs and Expenses, Total | 142,355 | 141,583 | |
OPERATING INCOME | 60,841 | 52,908 | |
Interest expense | (260) | (418) | |
Interest and miscellaneous income (expense), net | (2,773) | (2,373) | |
Equity in income from subsidiaries | 0 | 0 | |
INCOME BEFORE INCOME TAXES | 57,808 | 50,117 | |
Income tax benefit (expense) | (6,813) | (6,133) | |
NET INCOME | 50,995 | 43,984 | |
Less: Net income attributable to noncontrolling interest | 2,167 | 1,240 | |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 48,828 | 42,744 | |
Foreign currency translation adjustment | 9,577 | 2,432 | |
Cash flow hedges, net of income tax | 1,017 | (80) | |
Amortization of pension and postretirement plans, net of income tax | 0 | 0 | |
Total other comprehensive income | 10,594 | 2,352 | |
COMPREHENSIVE INCOME | 61,589 | 46,336 | |
Less: Comprehensive income attributable to noncontrolling interest | 4,483 | 1,651 | |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | $ 57,106 | $ 44,685 |
CONSOLIDATING FINANCIAL STATE82
CONSOLIDATING FINANCIAL STATEMENTS (Balance Sheets) (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | |||
Cash and cash equivalents | $ 92,785,000 | $ 112,653,000 | |
Accounts receivable, less allowance for doubtful accounts | 37,793,000 | 27,693,000 | |
Inventory | 19,993,000 | 24,141,000 | |
Prepaid expenses | 16,436,000 | 15,993,000 | |
Assets held for sale | 24,552,000 | 0 | |
Other current assets | 4,935,000 | 3,047,000 | |
Total current assets | 196,494,000 | 183,527,000 | |
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 2,424,675,000 | 2,462,066,000 | |
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 87,702,000 | 80,797,000 | |
NET PROPERTY, PLANT AND EQUIPMENT | 23,176,000 | 23,378,000 | |
RESTRICTED CASH | 84,903,000 | 59,703,000 | |
INVESTMENT IN SUBSIDIARIES | 0 | 0 | |
INTERCOMPANY NOTES RECEIVABLE | 0 | 0 | |
OTHER ASSETS | 61,422,000 | 49,010,000 | |
TOTAL ASSETS | 2,878,372,000 | 2,858,481,000 | |
CURRENT LIABILITIES | |||
Accounts payable | 27,082,000 | 25,148,000 | |
Current maturities of long-term debt (Note 5) | 0 | 3,375,000 | |
Accrued taxes | 3,583,000 | 3,781,000 | |
Accrued payroll and benefits | 3,760,000 | 9,662,000 | |
Accrued interest | 8,100,000 | 5,054,000 | |
Deferred revenue | 7,901,000 | 9,721,000 | |
Other current liabilities | 15,091,000 | 11,807,000 | |
Total current liabilities | 65,517,000 | 68,548,000 | |
Long-term debt, net of deferred financing costs | 996,145,000 | 1,022,004,000 | |
PENSION AND OTHER POSTRETIREMENT BENEFITS | 31,137,000 | 31,905,000 | |
OTHER NON-CURRENT LIABILITIES | 49,400,000 | 43,084,000 | |
INTERCOMPANY PAYABLE | 0 | 0 | |
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,631,773,000 | 1,593,023,000 | |
Noncontrolling interest | 104,400,000 | 99,917,000 | |
TOTAL SHAREHOLDERS’ EQUITY | 1,736,173,000 | 1,692,940,000 | $ 1,496,752,000 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,878,372,000 | 2,858,481,000 | |
Consolidating Adjustments | |||
CURRENT ASSETS | |||
Cash and cash equivalents | 0 | 0 | |
Accounts receivable, less allowance for doubtful accounts | 0 | 0 | |
Inventory | 0 | 0 | |
Prepaid expenses | 0 | 0 | |
Assets held for sale | 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 | (4,406,388,000) | (4,345,564,000) | |
INTERCOMPANY NOTES RECEIVABLE | 0 | 0 | |
OTHER ASSETS | 0 | 0 | |
TOTAL ASSETS | (4,406,388,000) | (4,345,564,000) | |
CURRENT LIABILITIES | |||
Accounts payable | 0 | 0 | |
Current maturities of long-term debt (Note 5) | 0 | ||
Accrued taxes | 0 | 0 | |
Accrued payroll and benefits | 0 | 0 | |
Accrued interest | 0 | 0 | |
Deferred revenue | 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 | (4,406,388,000) | (4,345,564,000) | |
Noncontrolling interest | 0 | 0 | |
TOTAL SHAREHOLDERS’ EQUITY | (4,406,388,000) | (4,345,564,000) | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | (4,406,388,000) | (4,345,564,000) | |
Rayonier Inc. (Parent Issuer) | Reportable Legal Entities | |||
CURRENT ASSETS | |||
Cash and cash equivalents | 34,837,000 | 48,564,000 | |
Accounts receivable, less allowance for doubtful accounts | 1,995,000 | 0 | |
Inventory | 0 | 0 | |
Prepaid expenses | 0 | 0 | |
Assets held for sale | 0 | ||
Other current assets | 0 | 0 | |
Total current assets | 36,832,000 | 48,564,000 | |
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 | 1,583,443,000 | 1,531,156,000 | |
INTERCOMPANY NOTES RECEIVABLE | 43,396,000 | 40,067,000 | |
OTHER ASSETS | 2,000 | 2,000 | |
TOTAL ASSETS | 1,663,673,000 | 1,619,789,000 | |
CURRENT LIABILITIES | |||
Accounts payable | 0 | 0 | |
Current maturities of long-term debt (Note 5) | 0 | ||
Accrued taxes | 0 | 0 | |
Accrued payroll and benefits | 0 | 0 | |
Accrued interest | 6,094,000 | 3,047,000 | |
Deferred revenue | 0 | 0 | |
Other current liabilities | 1,995,000 | 0 | |
Total current liabilities | 8,089,000 | 3,047,000 | |
Long-term debt, net of deferred financing costs | 323,526,000 | 323,434,000 | |
PENSION AND OTHER POSTRETIREMENT BENEFITS | 0 | 0 | |
OTHER NON-CURRENT LIABILITIES | 0 | 0 | |
INTERCOMPANY PAYABLE | (299,715,000) | (299,715,000) | |
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,631,773,000 | 1,593,023,000 | |
Noncontrolling interest | 0 | 0 | |
TOTAL SHAREHOLDERS’ EQUITY | 1,631,773,000 | 1,593,023,000 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 1,663,673,000 | 1,619,789,000 | |
Subsidiary Guarantors | Reportable Legal Entities | |||
CURRENT ASSETS | |||
Cash and cash equivalents | 18,651,000 | 25,042,000 | |
Accounts receivable, less allowance for doubtful accounts | 946,000 | 3,726,000 | |
Inventory | 0 | 0 | |
Prepaid expenses | 882,000 | 759,000 | |
Assets held for sale | 0 | ||
Other current assets | 216,000 | 14,000 | |
Total current assets | 20,695,000 | 29,541,000 | |
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 | 17,693,000 | 21,000 | |
RESTRICTED CASH | 0 | 0 | |
INVESTMENT IN SUBSIDIARIES | 2,822,945,000 | 2,814,408,000 | |
INTERCOMPANY NOTES RECEIVABLE | (627,022,000) | (628,167,000) | |
OTHER ASSETS | 26,471,000 | 12,680,000 | |
TOTAL ASSETS | 2,260,782,000 | 2,228,483,000 | |
CURRENT LIABILITIES | |||
Accounts payable | 3,453,000 | 2,838,000 | |
Current maturities of long-term debt (Note 5) | 0 | ||
Accrued taxes | 7,000 | 48,000 | |
Accrued payroll and benefits | 2,074,000 | 5,298,000 | |
Accrued interest | 2,000,000 | 1,995,000 | |
Deferred revenue | 0 | 0 | |
Other current liabilities | 546,000 | 564,000 | |
Total current liabilities | 8,080,000 | 10,743,000 | |
Long-term debt, net of deferred financing costs | 648,619,000 | 663,570,000 | |
PENSION AND OTHER POSTRETIREMENT BENEFITS | 31,821,000 | 32,589,000 | |
OTHER NON-CURRENT LIABILITIES | 7,780,000 | 9,386,000 | |
INTERCOMPANY PAYABLE | (18,961,000) | (18,961,000) | |
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,583,443,000 | 1,531,156,000 | |
Noncontrolling interest | 0 | 0 | |
TOTAL SHAREHOLDERS’ EQUITY | 1,583,443,000 | 1,531,156,000 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,260,782,000 | 2,228,483,000 | |
Non- guarantors | Reportable Legal Entities | |||
CURRENT ASSETS | |||
Cash and cash equivalents | 39,297,000 | 39,047,000 | |
Accounts receivable, less allowance for doubtful accounts | 34,852,000 | 23,967,000 | |
Inventory | 19,993,000 | 24,141,000 | |
Prepaid expenses | 15,554,000 | 15,234,000 | |
Assets held for sale | 24,552,000 | ||
Other current assets | 4,719,000 | 3,033,000 | |
Total current assets | 138,967,000 | 105,422,000 | |
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 2,424,675,000 | 2,462,066,000 | |
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 87,702,000 | 80,797,000 | |
NET PROPERTY, PLANT AND EQUIPMENT | 5,483,000 | 23,357,000 | |
RESTRICTED CASH | 84,903,000 | 59,703,000 | |
INVESTMENT IN SUBSIDIARIES | 0 | 0 | |
INTERCOMPANY NOTES RECEIVABLE | 583,626,000 | 588,100,000 | |
OTHER ASSETS | 34,949,000 | 36,328,000 | |
TOTAL ASSETS | 3,360,305,000 | 3,355,773,000 | |
CURRENT LIABILITIES | |||
Accounts payable | 23,629,000 | 22,310,000 | |
Current maturities of long-term debt (Note 5) | 3,375,000 | ||
Accrued taxes | 3,576,000 | 3,733,000 | |
Accrued payroll and benefits | 1,686,000 | 4,364,000 | |
Accrued interest | 6,000 | 12,000 | |
Deferred revenue | 7,901,000 | 9,721,000 | |
Other current liabilities | 12,550,000 | 11,243,000 | |
Total current liabilities | 49,348,000 | 54,758,000 | |
Long-term debt, net of deferred financing costs | 24,000,000 | 35,000,000 | |
PENSION AND OTHER POSTRETIREMENT BENEFITS | (684,000) | (684,000) | |
OTHER NON-CURRENT LIABILITIES | 41,620,000 | 33,698,000 | |
INTERCOMPANY PAYABLE | 318,676,000 | 318,676,000 | |
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 2,822,945,000 | 2,814,408,000 | |
Noncontrolling interest | 104,400,000 | 99,917,000 | |
TOTAL SHAREHOLDERS’ EQUITY | 2,927,345,000 | 2,914,325,000 | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 3,360,305,000 | $ 3,355,773,000 |
CONSOLIDATING FINANCIAL STATE83
CONSOLIDATING FINANCIAL STATEMENTS (Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Statement of Cash Flows [Abstract] | |||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | $ 78,235 | $ 33,943 | |
INVESTING ACTIVITIES | |||
Capital expenditures | (13,192) | (14,362) | |
Real estate development costs | (2,340) | (2,185) | |
Purchase of timberlands | (12) | (11,293) | |
Net proceeds from large disposition | 0 | 42,034 | |
Rayonier office building under construction | 0 | (2,604) | |
Investment in Subsidiaries | 0 | 0 | |
Other | (2,105) | (5,617) | |
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES | (17,649) | 5,973 | |
FINANCING ACTIVITIES | |||
Issuance of debt | 0 | 29,719 | |
Repayment of debt | (29,375) | (20,530) | |
Dividends paid | (32,123) | (30,618) | |
Proceeds from the issuance of common shares under incentive stock plan | 5,455 | 2,251 | |
Proceeds from the issuance of common shares under equity offering | 0 | 152,345 | |
Repurchase of common shares under share repurchase program | (18) | 0 | |
Issuance of intercompany notes | 0 | ||
Intercompany distributions | 0 | 0 | |
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES | (56,061) | 133,167 | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 807 | (67) | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||
Change in cash and cash equivalents | [1] | 5,332 | 173,016 |
Balance, beginning of year | [1] | 172,356 | 157,617 |
Balance, end of period | [1] | 177,688 | 330,633 |
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 | ||
Investment in Subsidiaries | (31,654) | (2,636) | |
Other | 0 | 0 | |
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES | (31,654) | (2,636) | |
FINANCING ACTIVITIES | |||
Issuance of debt | 0 | ||
Repayment of debt | 0 | 0 | |
Dividends paid | 0 | 0 | |
Proceeds from the issuance of common shares under incentive stock plan | 0 | 0 | |
Proceeds from the issuance of common shares under equity offering | 0 | ||
Repurchase of common shares under share repurchase program | 0 | ||
Issuance of intercompany notes | 0 | ||
Intercompany distributions | 31,654 | 2,636 | |
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES | 31,654 | 2,636 | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 0 | 0 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||
Change in cash and cash equivalents | 0 | 0 | |
Balance, beginning of year | 0 | 0 | |
Balance, end of period | 0 | 0 | |
Rayonier Inc. (Parent Issuer) | Reportable Legal Entities | |||
Statement of Cash Flows [Abstract] | |||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | (701) | (1,192) | |
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 | ||
Investment in Subsidiaries | 0 | 0 | |
Other | 0 | 0 | |
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES | 0 | 0 | |
FINANCING ACTIVITIES | |||
Issuance of debt | 0 | ||
Repayment of debt | 0 | 0 | |
Dividends paid | (32,123) | (30,618) | |
Proceeds from the issuance of common shares under incentive stock plan | 5,455 | 2,251 | |
Proceeds from the issuance of common shares under equity offering | 152,345 | ||
Repurchase of common shares under share repurchase program | (18) | ||
Issuance of intercompany notes | 0 | ||
Intercompany distributions | 13,660 | 13,677 | |
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES | (13,026) | 137,655 | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 0 | 0 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||
Change in cash and cash equivalents | (13,727) | 136,463 | |
Balance, beginning of year | 48,564 | 21,453 | |
Balance, end of period | 34,837 | 157,916 | |
Subsidiary Guarantors | Reportable Legal Entities | |||
Statement of Cash Flows [Abstract] | |||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | 37,055 | 36,931 | |
INVESTING ACTIVITIES | |||
Capital expenditures | (35) | 0 | |
Real estate development costs | 0 | 0 | |
Purchase of timberlands | 0 | 0 | |
Net proceeds from large disposition | 0 | ||
Rayonier office building under construction | 0 | ||
Investment in Subsidiaries | 31,654 | 2,636 | |
Other | 0 | 0 | |
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES | 31,619 | 2,636 | |
FINANCING ACTIVITIES | |||
Issuance of debt | 15,000 | ||
Repayment of debt | (26,000) | (15,000) | |
Dividends paid | 0 | 0 | |
Proceeds from the issuance of common shares under incentive stock plan | 0 | 0 | |
Proceeds from the issuance of common shares under equity offering | 0 | ||
Repurchase of common shares under share repurchase program | 0 | ||
Issuance of intercompany notes | 0 | ||
Intercompany distributions | (49,065) | (30,504) | |
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES | (75,065) | (30,504) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 0 | 0 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||
Change in cash and cash equivalents | (6,391) | 9,063 | |
Balance, beginning of year | 25,042 | 9,461 | |
Balance, end of period | 18,651 | 18,524 | |
Non- guarantors | Reportable Legal Entities | |||
Statement of Cash Flows [Abstract] | |||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | 41,881 | (1,796) | |
INVESTING ACTIVITIES | |||
Capital expenditures | (13,157) | (14,362) | |
Real estate development costs | (2,340) | (2,185) | |
Purchase of timberlands | (12) | (11,293) | |
Net proceeds from large disposition | 42,034 | ||
Rayonier office building under construction | (2,604) | ||
Investment in Subsidiaries | 0 | 0 | |
Other | (2,105) | (5,617) | |
CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES | (17,614) | 5,973 | |
FINANCING ACTIVITIES | |||
Issuance of debt | 14,719 | ||
Repayment of debt | (3,375) | (5,530) | |
Dividends paid | 0 | 0 | |
Proceeds from the issuance of common shares under incentive stock plan | 0 | 0 | |
Proceeds from the issuance of common shares under equity offering | 0 | ||
Repurchase of common shares under share repurchase program | 0 | ||
Issuance of intercompany notes | 0 | ||
Intercompany distributions | 3,751 | 14,191 | |
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES | 376 | 23,380 | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 807 | (67) | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||
Change in cash and cash equivalents | 25,450 | 27,490 | |
Balance, beginning of year | 98,750 | 126,703 | |
Balance, end of period | $ 124,200 | $ 154,193 | |
[1] | Due to the adoption of ASU No. 2016-18, restricted cash is now included with cash and cash equivalents when reconciling the beginning-of-year and end-of-period total amounts shown and therefore changes in restricted cash are no longer reported as investing activities. Prior period amounts have been restated to conform to current period presentation. For additional information and a reconciliation of cash, see |