Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 26, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | RAYONIER INC. | |
Trading Symbol | RYN | |
Entity Central Index key | 0000052827 | |
Current Fiscal year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 129,635,639 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
SALES (NOTE 2) | $ 191,546 | $ 203,196 |
Costs and Expenses | ||
Cost of sales | (143,251) | (138,488) |
Selling and general expenses | (9,810) | (9,003) |
Other operating income, net (Note 16) | 35 | 1,369 |
Costs and Expenses, Total | (153,026) | (146,122) |
OPERATING INCOME | 38,520 | 57,074 |
Interest expense | (7,710) | (8,052) |
Interest and other miscellaneous income, net | 1,332 | 620 |
INCOME BEFORE INCOME TAXES | 32,142 | 49,642 |
Income tax expense (Note 9) | (4,349) | (6,936) |
NET INCOME | 27,793 | 42,706 |
Less: Net income attributable to noncontrolling interest | (2,999) | (2,167) |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 24,794 | 40,539 |
OTHER COMPREHENSIVE (LOSS) INCOME | ||
Foreign currency translation adjustment, net of income tax expense of $0 and $0 | 6,033 | 9,688 |
Cash flow hedges, net of income tax expense of $335 and $368 | (10,686) | 16,615 |
Amortization of pension and postretirement plans, net of income tax expense of $0 and $0 | 112 | 159 |
Total other comprehensive (loss) income | (4,541) | 26,462 |
COMPREHENSIVE INCOME | 23,252 | 69,168 |
Less: Comprehensive income attributable to noncontrolling interest | (4,551) | (4,483) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | $ 18,701 | $ 64,685 |
EARNINGS PER COMMON SHARE (NOTE 12) | ||
Basic earnings per share attributable to Rayonier Inc. (in dollars per share) | $ 0.19 | $ 0.31 |
Diluted earnings per share attributable to Rayonier Inc. (in dollars per share) | $ 0.19 | $ 0.31 |
CONSOLIDATED STATEMENTS OF IN_2
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Foreign currency translation adjustment, tax expense | $ 0 | $ 0 |
Cash flow hedges, income tax (expense) benefit | 335 | 368 |
Amortization of pension and postretirement plans, tax expense | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 154,613 | $ 148,374 |
Accounts receivable, less allowance for doubtful accounts of $8 and $8 | 32,031 | 26,151 |
Inventory (Note 17) | 26,221 | 15,703 |
Prepaid expenses | 17,283 | 17,016 |
Other current assets | 738 | 609 |
Total current assets | 230,886 | 207,853 |
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 2,395,625 | 2,401,327 |
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (NOTE 7) | 76,287 | 85,609 |
PROPERTY, PLANT AND EQUIPMENT | ||
Land | 4,131 | 4,131 |
Buildings | 22,621 | 22,503 |
Machinery and equipment | 3,772 | 3,534 |
Construction in progress | 550 | 567 |
Total property, plant and equipment, gross | 31,074 | 30,735 |
Less — accumulated depreciation | (8,533) | (7,984) |
Total property, plant and equipment, net | 22,541 | 22,751 |
RESTRICTED CASH (NOTE 18) | 9,867 | 8,080 |
RIGHT OF USE ASSETS (NOTE 3) | 105,745 | 0 |
OTHER ASSETS | 43,259 | 55,046 |
TOTAL ASSETS | 2,884,210 | 2,780,666 |
CURRENT LIABILITIES | ||
Accounts payable | 25,958 | 18,019 |
Accrued taxes | 4,028 | 3,178 |
Accrued payroll and benefits | 4,732 | 10,416 |
Accrued interest | 8,106 | 5,007 |
Deferred revenue | 8,468 | 10,447 |
Other current liabilities | 27,050 | 16,474 |
Total current liabilities | 78,342 | 63,541 |
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS (NOTE 6) | 972,707 | 972,567 |
PENSION AND OTHER POSTRETIREMENT BENEFITS (NOTE 15) | 29,812 | 29,800 |
LONG-TERM LEASE LIABILITY (NOTE 3) | 95,009 | 0 |
OTHER NON-CURRENT LIABILITIES | 67,140 | 60,208 |
COMMITMENTS AND CONTINGENCIES (NOTES 8 and 10) | ||
SHAREHOLDERS’ EQUITY | ||
Common Shares, 480,000,000 shares authorized,129,513,566 and 129,488,675 shares issued and outstanding | 886,304 | 884,263 |
Retained earnings | 662,116 | 672,371 |
Accumulated other comprehensive (loss) income (Note 19) | (5,853) | 239 |
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,542,567 | 1,556,873 |
Noncontrolling interest | 98,633 | 97,677 |
TOTAL SHAREHOLDERS’ EQUITY | 1,641,200 | 1,654,550 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 2,884,210 | $ 2,780,666 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Allowance for doubtful accounts | $ 8 | $ 8 |
Shareholders’ Equity: | ||
Common shares, shares authorized (in shares) | 480,000,000 | 480,000,000 |
Common shares, shares issued (in shares) | 129,513,566 | 129,488,675 |
Common shares, shares outstanding (in shares) | 129,513,566 | 129,488,675 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Shares | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest |
Beginning balance (in shares) at Dec. 31, 2017 | 128,970,776 | ||||
Beginning 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 ($0.27 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) | |||
Amortization of pension and postretirement plan liabilities | 159 | ||||
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 |
Beginning balance (in shares) at Dec. 31, 2018 | 129,488,675 | ||||
Beginning balance at Dec. 31, 2018 | 1,654,550 | $ 884,263 | 672,371 | 239 | 97,677 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 27,793 | 24,794 | 2,999 | ||
Dividends ($0.27 and $0.25 per share, respectively) | (35,049) | (35,049) | |||
Issuance of shares under incentive stock plans (in shares) | 26,031 | ||||
Issuance of shares under incentive stock plans | 597 | $ 597 | |||
Stock-based compensation | 1,477 | $ 1,477 | |||
Repurchase of common shares (in shares) | (1,140) | ||||
Repurchase of common shares | (33) | $ (33) | |||
Amortization of pension and postretirement plan liabilities | 112 | 112 | |||
Foreign currency translation adjustment | 6,033 | 4,680 | 1,353 | ||
Cash flow hedges | (10,686) | (10,884) | 198 | ||
Distribution to minority shareholder | (3,594) | (3,594) | |||
Ending balance (in shares) at Mar. 31, 2019 | 129,513,566 | ||||
Ending balance at Mar. 31, 2019 | $ 1,641,200 | $ 886,304 | $ 662,116 | $ (5,853) | $ 98,633 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared (in dollars per share) | $ 0.27 | $ 0.25 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
OPERATING ACTIVITIES | |||
Net income | $ 27,793 | $ 42,706 | |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation, depletion and amortization | 36,491 | 34,537 | |
Non-cash cost of land and improved development | 4,030 | 1,624 | |
Stock-based incentive compensation expense | 1,477 | 1,262 | |
Deferred income taxes | 3,705 | 6,982 | |
Amortization of losses from pension and postretirement plans | 112 | 159 | |
Other | 1,491 | 6,271 | |
Changes in operating assets and liabilities: | |||
Receivables | (8,195) | (10,473) | |
Inventories | (1,343) | (1,268) | |
Accounts payable | 6,389 | 3,921 | |
Income tax receivable/payable | 0 | (290) | |
All other operating activities | (1,033) | (7,196) | |
CASH PROVIDED BY OPERATING ACTIVITIES | 70,917 | 78,235 | |
INVESTING ACTIVITIES | |||
Capital expenditures | (14,122) | (13,192) | |
Real estate development investments | (1,677) | (2,340) | |
Purchase of timberlands | (12,349) | (12) | |
Other | 2,337 | (2,105) | |
CASH USED FOR INVESTING ACTIVITIES | (25,811) | (17,649) | |
FINANCING ACTIVITIES | |||
Repayment of debt | 0 | (29,375) | |
Dividends paid | (34,877) | (32,123) | |
Proceeds from the issuance of common shares under incentive stock plan | 597 | 5,455 | |
Repurchase of common shares | (33) | (18) | |
Distribution to minority shareholder | (3,594) | 0 | |
Other | (16) | 0 | |
CASH USED FOR FINANCING ACTIVITIES | (37,923) | (56,061) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 843 | 807 | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||
Change in cash, cash equivalents and restricted cash | 8,026 | 5,332 | |
Balance, beginning of year | 156,454 | 172,356 | |
Balance, end of period | 164,480 | 177,688 | |
Cash paid during the period: | |||
Interest | [1] | 2,120 | 2,585 |
Income taxes | 631 | 281 | |
Non-cash investing activity: | |||
Capital assets purchased on account | $ 3,354 | $ 1,525 | |
[1] | Interest paid is presented net of patronage payments received of $3.9 million and $3.7 million for the three months ended March 31, 2019 and March 31, 2018 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Cash Flows [Abstract] | ||
Patronage refunds received, netted with interest paid | $ 3.9 | $ 3.7 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 , as filed with the SEC (the “2018 Form 10-K”). SUMMARY OF UPDATES TO SIGNIFICANT ACCOUNTING POLICIES For information on updated significant accounting policies due to the adoption of ASC 842, see Note 3 — Leases . For a full description of our other significant accounting policies, see Note 1 — Basis of Presentation in the 2018 Form 10-K. RECENTLY ADOPTED STANDARDS ASU 2016-02 (ASC 842) The Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) , on January 1, 2019 and elected to apply the standard as of that day. As such, the Consolidated Balance Sheet as of March 31, 2019 includes right-of-use assets and lease liabilities related to the rights and obligations created by the Company’s long-term leases. Prior periods have not been restated. The Company applied the following practical expedients in the transition to the new standard and allowed under ASC 842-10-65-1: Practical Expedient Description Reassessment of expired or existing contracts The Company elected not to reassess, at the application date, whether any expired or existing contracts contained leases, the lease classification for any expired or existing leases, and the accounting for initial direct costs for any existing leases. Use of hindsight The Company elected to use hindsight in determining the lease term (that is, when considering options to extend or terminate the lease and to purchase the underlying asset) and in assessing impairment of right-to-use assets. Reassessment of existing or expired land easements The Company elected not to evaluate existing or expired land easements that were not previously accounted for as leases under ASC 840, as allowed under the transition practical expedient. Going forward, new or modified land easements will be evaluated under ASU No. 2016-02. See Note 3 — Leases for additional qualitative and quantitative disclosures required under ASU No. 2016-02. OTHER RECENTLY ADOPTED STANDARDS The Company adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities in the first quarter ended March 31, 2019 with no material impact on the consolidated financial statements. The Company adopted ASU No 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting in the first quarter ended March 31, 2019 with no impact on the consolidated financial statements. NEW ACCOUNTING STANDARDS In the first quarter 2019, the Financial Accounting Standards Board (“FASB”) did not issue any Accounting Standard Updates which are expected to have a material retrospective or future effect on the consolidated financial statements. SUBSEQUENT EVENTS The Company has evaluated events occurring from March 31, 2019 |
REVENUE
REVENUE | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE PERFORMANCE OBLIGATIONS 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 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, 2019 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. 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. The following table summarizes revenue recognized during the three months ended March 31, 2019 and 2018 that was included in the contract liability balance at the beginning of each year: Three Months Ended March 31, 2019 2018 Revenue recognized from contract liability balance at the beginning of the year (a) $5,356 $6,372 (a) Revenue recognized was primarily from hunting licenses and the use of advances on pay-as-cut timber sales. The following tables present our revenue from contracts with customers disaggregated by product type for the three months ended March 31, 2019 and 2018 : Three Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Elim. Total March 31, 2019 Pulpwood $26,799 $2,820 $8,767 — $4,326 — $42,712 Sawtimber 23,152 17,277 45,863 — 27,512 — 113,804 Hardwood 1,086 — — — — — 1,086 Total Timber Sales 51,037 20,097 54,630 — 31,838 — 157,602 License Revenue, Primarily From Hunting 4,026 4 53 — — — 4,083 Other Non-Timber/Carbon Revenue 5,783 434 2,447 — — — 8,664 Agency Fee Income — — — — 198 — 198 Total Non-Timber Sales 9,809 438 2,500 — 198 — 12,945 Improved Development — — — 341 — — 341 Unimproved Development — — — 1,000 — — 1,000 Rural — — — 12,665 — — 12,665 Non-strategic / Timberlands — — — 6,934 — — 6,934 Other — — — 59 — — 59 Total Real Estate Sales — — — 20,999 — — 20,999 Revenue from Contracts with Customers 60,846 20,535 57,130 20,999 32,036 — 191,546 Intersegment — — — — 29 (29 ) — Total Revenue $60,846 $20,535 $57,130 $20,999 $32,065 ($29 ) $191,546 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 1,364 862 2,323 — — — 4,549 Agency Fee Income — — — — 123 — 123 Total Non-Timber Sales 5,448 887 2,375 — 123 — 8,833 Improved Development — — — 1,121 — — 1,121 Unimproved Development — — — 7,446 — — 7,446 Rural — — — 1,652 — — 1,652 Non-strategic / Timberlands — — — 25,845 — — 25,845 Total Real Estate Sales — — — 36,064 — — 36,064 Revenue from Contracts with Customers 43,588 31,374 52,964 36,064 39,206 — 203,196 Intersegment — — — — 6 (6 ) — Total Revenue $43,588 $31,374 $52,964 $36,064 $39,212 ($6 ) $203,196 The following tables present our timber sales disaggregated by contract type for the three months ended March 31, 2019 and 2018 : Three Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Trading Total March 31, 2019 Stumpage Pay-as-Cut $28,008 — — — $28,008 Stumpage Lump Sum 2,095 — — — 2,095 Total Stumpage 30,103 — — — 30,103 Delivered Wood (Domestic) 19,338 20,097 20,700 2,124 62,259 Delivered Wood (Export) 1,596 — 33,930 29,714 65,240 Total Delivered 20,934 20,097 54,630 31,838 127,499 Total Timber Sales $51,037 $20,097 $54,630 $31,838 $157,602 March 31, 2018 Stumpage Pay-as-Cut $22,511 — — — $22,511 Stumpage Lump Sum 1,818 5,106 — — 6,924 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 |
LEASES LEASES
LEASES LEASES | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES ADOPTION OF ASC 842 For information on the adoption of ASC 842, including required transition disclosures, see Note 1 — Basis of Presentation . TIMBERLAND LEASES U.S. timberland leases typically have initial terms of approximately 30 to 65 years , with renewal provisions in some cases. New Zealand timberland lease terms typically range between 30 and 99 years . New Zealand lease arrangements generally consist of Crown Forest Licenses (“CFLs”), forestry rights and land leases. A CFL is a license arrangement to use government or privately owned land to operate a commercial forest. CFLs generally extend indefinitely and may only be terminated upon a 35 -year termination notice. If no termination notice is given, the CFLs renew automatically each year for a one -year term. Alternatively, some CFLs extend for a specific term. Once a CFL is terminated, the Company may be able to obtain a forestry right from the subsequent owner. A forestry right is a license arrangement with a private entity to use their lands to operate a commercial forest. Forestry rights terminate either upon the issuance of a termination notice (which can last 35 to 45 years ), completion of harvest, or a specified termination date. As of March 31, 2019 , the New Zealand subsidiary has two CFLs comprising 9,000 acres under termination notice that are currently being relinquished as harvest activities are concluding, as well as two fixed-term CFLs comprising 3,000 acres expiring in 2062. Additionally, the New Zealand subsidiary has two forestry rights comprising 33,000 acres under termination notice that are currently being relinquished as harvest activities are concluding. OTHER NON-TIMBERLAND LEASES In addition to our timberland holdings, we lease properties for certain office locations. Our significant leased properties include a regional office in Lufkin, Texas; our Pacific Northwest Timber office in Hoquiam, Washington and our New Zealand Timber and Trading headquarters in Auckland, New Zealand. LEASE MATURITIES, LEASE COST AND OTHER LEASE INFORMATION The following table details the Company’s undiscounted lease obligations as of March 31, 2019 by type of lease and year of expiration: Year of Expiration Lease obligations Total Remaining 2019 2020 2021 2022 2023 Thereafter Operating lease liabilities 198,899 8,623 10,071 9,217 8,321 8,285 154,382 Total Undiscounted Cash Flows 198,899 $8,623 $10,071 $9,217 $8,321 $8,285 $154,382 Imputed interest (93,224 ) Balance at March 31, 2019 105,675 Less: Current portion (10,666 ) Non-current portion at March 31, 2019 $95,009 The following table details components of the Company’s lease cost for the three months ended March 31, 2019 : Three Months Ended March 31, Lease Cost Components 2019 Operating lease cost 2,437 Variable lease cost (a) 76 Total lease cost (b) $2,513 (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) Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for these leases are expensed on a straight line basis over the lease term. Short-term lease expense was not material for the three months ended March 31, 2019. The following table details components of the Company’s lease cost for the three months ended March 31, 2019 : Three Months Ended March 31, Supplemental cash flow information related to leases: 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 973 Investing cash flows from operating leases 1,464 Total cash flows from operating leases $2,437 Weighted-average remaining lease term in years - operating leases 29 Weighted-average discount rate - operating leases 5 % The Company applied the following practical expedients upon adoption of the the new standard and allowed under ASC 842: Practical Expedient Description Short-term leases The Company does not record right-of-use assets or lease liabilities for short-term leases (a lease that at commencement date has a lease term of 12 months or less and does not contain a purchase option that is reasonably certain to be exercised). Separation of lease and non-lease components The Company does not separate non-lease components from the associated lease components if they have the same timing and pattern of transfer and, if accounted for separately, would both be classified as an operating lease |
NEW ZEALAND SUBSIDIARY
NEW ZEALAND SUBSIDIARY | 3 Months Ended |
Mar. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
NEW ZEALAND SUBSIDIARY | NEW ZEALAND SUBSIDIARY The Company maintains a 77% controlling financial interest in Matariki Forestry Group (the “New Zealand subsidiary”), a joint venture that owns or leases approximately 409,000 legal acres of New Zealand timberland. Accordingly, the Company consolidates the New Zealand subsidiary’s balance sheet and results of operations. The portions of the consolidated financial position and results of operations attributable to the New Zealand subsidiary’s 23% |
SEGMENT AND GEOGRAPHICAL INFORM
SEGMENT AND GEOGRAPHICAL INFORMATION | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHICAL INFORMATION | SEGMENT AND GEOGRAPHICAL INFORMATION Sales between operating segments are made based on estimated fair market value, and intercompany sales, purchases and profits (losses) are eliminated in consolidation. The Company evaluates financial performance based on segment operating income and Adjusted EBITDA. Asset information is not reported by segment, as the Company does not produce asset information by segment internally. Operating income as presented in the Consolidated Statements of Income and Comprehensive Income is equal to segment income. Certain income (loss) items in the Consolidated Statements of Income and Comprehensive Income are not allocated to segments. These items, which include interest income (expense), miscellaneous income (expenses) and income tax expense, are not considered by management to be part of segment operations and are included under “unallocated interest expense and other.” The following tables summarize the segment information for the three months ended March 31, 2019 and 2018 : Three Months Ended SALES 2019 2018 Southern Timber $60,846 $43,588 Pacific Northwest Timber 20,535 31,374 New Zealand Timber 57,130 52,964 Real Estate 20,999 36,064 Trading 32,065 39,212 Intersegment Eliminations (29 ) (6 ) Total $191,546 $203,196 Three Months Ended OPERATING INCOME (LOSS) 2019 2018 Southern Timber $21,520 $12,227 Pacific Northwest Timber (3,741 ) 4,674 New Zealand Timber 15,720 15,957 Real Estate 10,027 28,054 Trading 480 149 Corporate and other (5,486 ) (3,987 ) Total Operating Income 38,520 57,074 Unallocated interest expense and other (6,378 ) (7,432 ) Total Income before Income Taxes $32,142 $49,642 Three Months Ended DEPRECIATION, DEPLETION AND AMORTIZATION 2019 2018 Southern Timber $19,727 $15,979 Pacific Northwest Timber 6,826 9,504 New Zealand Timber 6,319 5,717 Real Estate 3,335 3,066 Corporate and other 284 271 Total $36,491 $34,537 Three Months Ended NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT 2019 2018 Real Estate 4,030 1,624 Total $4,030 $1,624 |
DEBT
DEBT | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Rayonier’s debt consisted of the following at March 31, 2019 : March 31, 2019 Term Credit Agreement borrowings due 2024 at a variable interest rate of 4.1% at March 31, 2019 (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 4.4% at March 31, 2019 (b) 300,000 Total debt 975,000 Less: Deferred financing costs (2,293 ) Long-term debt, net of deferred financing costs $972,707 (a) As of March 31, 2019, 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, 2019, 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: 2019 — 2020 — 2021 — 2022 325,000 2023 — Thereafter 650,000 Total Debt $975,000 2019 DEBT ACTIVITY During the three months ended March 31, 2019 , the Company made no borrowings or repayments on its Revolving Credit Facility . At March 31, 2019 , the Company had available borrowings of $190.6 million under the Revolving Credit Facility, net of $9.4 million to secure its outstanding letters of credit. During the three months ended March 31, 2019 , the New Zealand subsidiary made no borrowings or repayments on its working capital facility. At March 31, 2019 , the New Zealand subsidiary had NZ $20.0 million of available borrowings under its working capital facility. 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, 2019 |
HIGHER AND BETTER USE TIMBERLAN
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 to March 31, 2019 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, 2018 $59,189 $26,420 $85,609 Plus: Current portion (a) 4,239 7,680 11,919 Total Balance at December 31, 2018 63,428 34,100 97,528 Non-cash cost of land and improved development (974 ) (233 ) (1,207 ) Timber depletion from harvesting activities and basis of timber sold in real estate sales (1,020 ) — (1,020 ) Capitalized real estate development investments (b) — 1,677 1,677 Capital expenditures (silviculture) 35 — 35 Intersegment transfers 16 — 16 Total Balance at March 31, 2019 61,485 35,544 97,029 Less: Current portion (a) (7,948 ) (12,794 ) (20,742 ) Non-current portion at March 31, 2019 $53,537 $22,750 $76,287 (a) The current portion of Higher and Better Use Timberlands and Real Estate Development Investments is recorded in Inventory. See Note 17 — Inventory for additional information. (b) Capitalized real estate development investments include $0.2 million |
COMMITMENTS
COMMITMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS | COMMITMENTS At March 31, 2019 , the future minimum payments under non-cancellable commitments were as follows: Development Projects (a) Pension Contribution (b) Commitments (c) Total Remaining 2019 $2,130 $1,326 $950 $4,406 2020 — 442 254 696 2021 — — 46 46 2022 — — 3 3 2023 — — — — Thereafter — — — — $2,130 $1,768 $1,253 $5,151 (a) Consists of payments expected to be made on the Company’s Wildlight development project. (b) Pension contribution requirements are based on actuarially determined estimates and IRS minimum funding requirements. (c) |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s timber operations are primarily conducted by the Company’s REIT entity, which is generally not subject to U.S. federal and state income tax. The New Zealand timber operations are conducted by the New Zealand subsidiary, which is subject to corporate level tax in New Zealand. Non-REIT qualifying operations, which are subject to corporate-level tax, are conducted by various TRS entities. These operations include log trading and certain real estate activities, such as the sale, entitlement and development of HBU properties. PROVISION FOR INCOME TAXES The Company’s tax expense is principally related to New Zealand corporate level tax on the New Zealand subsidiary income. The following table contains the income tax expense recognized on the Consolidated Statements of Income and Comprehensive Income. Three Months Ended 2019 2018 Income tax expense ($4,349 ) ($6,936 ) ANNUAL EFFECTIVE TAX RATE 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 following table contains the Company’s annualized effective tax rate. Three Months Ended 2019 2018 Annualized effective tax rate 12.7 % 13.9 % |
CONTINGENCIES
CONTINGENCIES | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIESThe Company has been named as a defendant in various 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, 2019 | |
Guarantees [Abstract] | |
GUARANTEES | GUARANTEES The Company provides financial guarantees as required by creditors, insurance programs, and various governmental agencies. As of March 31, 2019 , the following financial guarantees were outstanding: Financial Commitments (a) Maximum Potential Payment Standby letters of credit (b) $9,365 Surety bonds (c) 3,297 Total financial commitments $12,662 (a) The Company has not recorded any liabilities for these financial commitments in the Consolidated Balance Sheets. The guarantees are not subject to measurement, as the guarantees are dependent on the Company’s own performance. (b) Approximately $8.4 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 2019 and will be renewed as required. (c) |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 2018 Net Income $27,793 $42,706 Less: Net income attributable to noncontrolling interest (2,999 ) (2,167 ) Net income attributable to Rayonier Inc. $24,794 $40,539 Shares used for determining basic earnings per common share 129,172,925 128,801,210 Dilutive effect of: Stock options 19,696 78,475 Performance and restricted shares 557,660 672,712 Shares used for determining diluted earnings per common share 129,750,281 129,552,397 Basic earnings per common share attributable to Rayonier Inc.: $0.19 $0.31 Diluted earnings per common share attributable to Rayonier Inc.: $0.19 $0.31 Three Months Ended 2019 2018 Anti-dilutive shares excluded from the computations of diluted earnings per share: Stock options and performance shares 438,273 171,819 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | 3 Months Ended |
Mar. 31, 2019 | |
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 (loss) (“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. FOREIGN CURRENCY EXCHANGE AND OPTION CONTRACTS The functional currency of Rayonier’s wholly owned subsidiary, Rayonier New Zealand Limited, and the New Zealand subsidiary is the New Zealand dollar. The New Zealand subsidiary is exposed to foreign currency risk on export sales and ocean freight payments which are mainly denominated in U.S. dollars. The New Zealand subsidiary 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 subsidiary’s trading operations is typically hedged based on the following three months forecasted sales and purchases. As of March 31, 2019 , foreign currency exchange contracts and foreign currency option contracts had maturity dates through July 2020 and February 2020, 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 (loss) until the forecasted transaction affects earnings. Changes in the value of derivative instruments after de-designation are recorded in earnings. 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 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, 2019 : 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. CARBON OPTIONS The New Zealand subsidiary enters into carbon options from time to time to sell carbon assets at certain prices. The fair value of carbon options is determined by a mark-to-market valuation using the Black-Scholes option pricing model, 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 . For the three months ended March 31, 2019 , the change in fair value of the carbon option contracts of $0.4 million , was recorded as a gain in “ Interest and other miscellaneous income, net ” as the contracts did not qualify for hedge accounting treatment. As of March 31, 2019 , carbon option contracts had maturity dates through April 2020. The following tables demonstrate the impact, gross of tax, of the Company’s derivatives on the Consolidated Statements of Income and Comprehensive Income for the three months ended March 31, 2019 and 2018 . Three Months Ended Income Statement Location 2019 2018 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other comprehensive (loss) income $1,119 $1,233 Foreign currency option contracts Other comprehensive (loss) income 77 181 Interest rate swaps Other comprehensive (loss) income (11,548 ) 15,598 Derivatives designated as a net investment hedge: Foreign currency exchange contract Other comprehensive (loss) income — 110 Derivatives not designated as hedging instruments: Foreign currency exchange contracts Interest and other miscellaneous income, net (16 ) 129 Carbon option contracts Interest and other miscellaneous income, net 402 — During the next 12 months, the amount of the March 31, 2019 AOCI balance, net of tax, expected to be reclassified into earnings as a result of the maturation of the Company’s derivative instruments is a loss of approximately $0.2 million . The following table contains the notional amounts of the derivative financial instruments recorded in the Consolidated Balance Sheets: Notional Amount March 31, 2019 December 31, 2018 Derivatives designated as cash flow hedges: Foreign currency exchange contracts $77,500 $69,950 Foreign currency option contracts 24,000 24,000 Interest rate swaps 650,000 650,000 Derivative not designated as a hedging instrument: Foreign currency exchange contracts 4,082 9,396 Carbon options (a) 6,995 2,517 (a) Notional amount for carbon options is calculated as the number of units outstanding multiplied by the spot price as of March 31, 2019 . 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, 2019 December 31, 2018 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other current assets $150 — Other assets 42 — Other current liabilities (642 ) (1,569 ) Foreign currency option contracts Other current assets 296 217 Other assets — 102 Other current liabilities (73 ) (106 ) Other non-current liabilities — (68 ) Interest rate swaps Other assets 14,239 23,735 Other non-current liabilities (2,052 ) — Derivative not designated as a hedging instrument: Foreign currency exchange contracts Other current assets 51 152 Other current liabilities — (24 ) Carbon options Other current liabilities — (322 ) Other non-current liabilities (15 ) — Total derivative contracts: Other current assets $497 $369 Other assets 14,281 23,837 Total derivative assets $14,778 $24,206 Other current liabilities (715 ) (2,021 ) Other non-current liabilities (2,067 ) (68 ) Total derivative liabilities ($2,782 ) ($2,089 ) (a) See Note 14 — 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 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS FAIR VALUE OF FINANCIAL INSTRUMENTS A three-level hierarchy that prioritizes the inputs used to measure fair value was established in the Accounting Standards Codification as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than quoted prices included in Level 1. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following table presents the carrying amount and estimated fair values of financial instruments held by the Company at March 31, 2019 and December 31, 2018 , using market information and what the Company believes to be appropriate valuation methodologies under GAAP: March 31, 2019 December 31, 2018 Asset (Liability) (a) Carrying Amount Fair Value Carrying Amount Fair Value Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $154,613 $154,613 — $148,374 $148,374 — Restricted cash (b) 9,867 9,867 — 8,080 8,080 — Long-term debt (c) (972,707 ) — (976,073 ) (972,567 ) — (975,845 ) Interest rate swaps (d) 12,187 — 12,187 23,735 — 23,735 Foreign currency exchange contracts (d) (399 ) — (399 ) (1,442 ) — (1,442 ) Foreign currency option contracts (d) 223 — 223 145 — 145 Carbon option contracts (d) (15 ) — (15 ) (322 ) — (322 ) (a) The Company did not have Level 3 assets or liabilities at March 31, 2019 and December 31, 2018 . (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 18 — Restricted Cash for additional information. (c) The carrying amount of long-term debt is presented net of capitalized debt costs on non-revolving debt. See Note 6 — Debt for additional information. (d) See Note 13 — 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. Carbon option contracts — The fair value of carbon option contracts is determined by a mark-to-market valuation using the Black-Scholes option pricing model, 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 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019, the Company has paid zero of the approximately $1.3 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 Pension Postretirement Three Months Ended Three Months Ended 2019 2018 2019 2018 Service cost Selling and general expenses — — $1 $2 Interest cost Interest and other miscellaneous income, net 800 751 14 12 Expected return on plan assets (a) Interest and other miscellaneous income, net (777 ) (982 ) — — Amortization of losses Interest and other miscellaneous income, net 112 159 — 1 Net periodic benefit (credit) cost $135 ($72 ) $15 $15 (a) The weighted-average expected long-term rate of return on plan assets used in computing 2019 net periodic benefit cost for pension benefits is 5.7% |
OTHER OPERATING INCOME, NET
OTHER OPERATING INCOME, NET | 3 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
OTHER OPERATING INCOME, NET | OTHER OPERATING INCOME, NET Other operating income, net consisted of the following: Three Months Ended March 31, 2019 2018 Foreign currency income (expense) $82 ($753 ) Gain on sale or disposal of property and equipment 21 15 (Loss) gain on foreign currency exchange and option contracts (52 ) 1,433 Log trading marketing fees 57 70 Income from the sale of unused Internet Protocol addresses — 646 Miscellaneous expense, net (73 ) (42 ) Total $35 $1,369 |
INVENTORY
INVENTORY | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORY As of March 31, 2019 and December 31, 2018 , Rayonier’s inventory consisted entirely of finished goods, as follows: March 31, 2019 December 31, 2018 Finished goods inventory Real estate inventory (a) $20,742 $11,919 Log inventory 5,479 3,784 Total inventory $26,221 $15,703 (a) Represents cost of HBU real estate (including capitalized development investments) expected to be sold within 12 months. |
RESTRICTED CASH
RESTRICTED CASH | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and December 31, 2018 , the Company had $9.9 million and $8.1 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, 2019 : March 31, 2019 Restricted cash deposited with LKE intermediary $9,317 Restricted cash held in escrow 550 Total restricted cash shown in the Consolidated Balance Sheets 9,867 Cash and cash equivalents 154,613 Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows $164,480 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 3 Months Ended |
Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | The following table summarizes the changes in AOCI by component for the three months ended March 31, 2019 and the year ended December 31, 2018 . All amounts are presented net of tax and exclude portions attributable to noncontrolling interest. Foreign currency translation gains Net investment hedges of New Zealand subsidiary Cash flow hedges Employee benefit plans Total Balance as of December 31, 2017 $15,975 $1,665 $16,184 ($20,407 ) $13,417 Other comprehensive (loss) income before reclassifications (16,985 ) (344 ) 5,944 (a) (1,594 ) (12,979 ) Amounts reclassified from accumulated other comprehensive income (loss) — — (163 ) (36 ) (199 ) Net other comprehensive (loss)/income (16,985 ) (344 ) 5,781 (1,630 ) (13,178 ) Balance as of December 31, 2018 ($1,010 ) $1,321 $21,965 ($22,037 ) $239 Other comprehensive income/(loss) before reclassifications 4,680 — (10,648 ) (a) — (5,968 ) Amounts reclassified from accumulated other comprehensive income (loss) — — (236 ) 112 (b) (124 ) Net other comprehensive income/(loss) 4,680 — (10,884 ) 112 (6,092 ) Balance as of March 31, 2019 $3,670 $1,321 $11,081 ($21,925 ) ($5,853 ) (a) Includes $11.5 million of other comprehensive income related to interest rate swaps. See Note 13 — Derivative Financial Instruments and Hedging Activities for additional information. (b) This component of other comprehensive income (loss) is included in the computation of net periodic pension and post-retirement costs. See Note 15 — 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, 2019 and March 31, 2018 : Details about accumulated other comprehensive income (loss) components Amount reclassified from accumulated other comprehensive income (loss) Affected line item in the income statement March 31, 2019 March 31, 2018 Realized gain on foreign currency exchange contracts ($412 ) ($1,297 ) Other operating income, net Realized gain on foreign currency option contracts (14 ) (136 ) Other operating income, net Noncontrolling interest 98 330 Comprehensive income attributable to noncontrolling interest Income tax expense from gain on foreign currency contracts 92 308 Income tax expense Net gain from accumulated other comprehensive income ($236 ) ($795 ) |
CONSOLIDATING FINANCIAL STATEME
CONSOLIDATING FINANCIAL STATEMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information 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 Three Months Ended March 31, 2019 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated SALES — — $191,546 — $191,546 Costs and Expenses Cost of sales — — (143,251 ) — (143,251 ) Selling and general expenses — (4,843 ) (4,967 ) — (9,810 ) Other operating (loss) income, net — — 35 — 35 — (4,843 ) (148,183 ) — (153,026 ) OPERATING (LOSS) INCOME — (4,843 ) 43,363 — 38,520 Interest expense (3,138 ) (4,547 ) (25 ) — (7,710 ) Interest and miscellaneous income (expense), net (457 ) 964 825 — 1,332 Equity in income from subsidiaries 28,389 37,432 — (65,821 ) — INCOME BEFORE INCOME TAXES 24,794 29,006 44,163 (65,821 ) 32,142 Income tax expense — (617 ) (3,732 ) — (4,349 ) NET INCOME 24,794 28,389 40,431 (65,821 ) 27,793 Less: Net income attributable to noncontrolling interest — — (2,999 ) — (2,999 ) NET INCOME ATTRIBUTABLE TO RAYONIER INC. 24,794 28,389 37,432 (65,821 ) 24,794 OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation adjustment, net of income tax 4,679 (90 ) 6,122 (4,678 ) 6,033 Cash flow hedges, net of income tax (10,884 ) (11,548 ) 862 10,884 (10,686 ) Amortization of pension and postretirement plans, net of income tax 112 112 — (112 ) 112 Total other comprehensive income (loss) (6,093 ) (11,526 ) 6,984 6,094 (4,541 ) COMPREHENSIVE INCOME 18,701 16,863 47,415 (59,727 ) 23,252 Less: Comprehensive loss attributable to noncontrolling interest — — (4,551 ) — (4,551 ) COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. $18,701 $16,863 $42,864 ($59,727 ) $18,701 Three Months Ended March 31, 2018 Rayonier Inc. Subsidiary Guarantors Non- Consolidating 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 (loss) 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 (LOSS) 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 (loss) 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 BALANCE SHEETS As of March 31, 2019 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $16,590 $98,805 $39,218 — $154,613 Accounts receivable, less allowance for doubtful accounts — 1,017 31,014 — 32,031 Inventory — — 26,221 — 26,221 Prepaid expenses — 1,130 16,153 — 17,283 Other current assets — 99 639 — 738 Total current assets 16,590 101,051 113,245 — 230,886 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — 2,395,625 — 2,395,625 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS — — 76,287 — 76,287 NET PROPERTY, PLANT AND EQUIPMENT — 16,690 5,851 — 22,541 RESTRICTED CASH — — 9,867 — 9,867 RIGHT OF USE ASSETS — 35,236 70,509 — 105,745 INVESTMENT IN SUBSIDIARIES 1,799,713 3,014,476 — (4,814,189 ) — INTERCOMPANY RECEIVABLE 56,251 (643,442 ) 587,191 — — OTHER ASSETS 2 10,030 33,227 — 43,259 TOTAL ASSETS $1,872,556 $2,534,041 $3,291,802 ($4,814,189 ) $2,884,210 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable — $4,403 $21,555 — $25,958 Accrued taxes — 64 3,964 — 4,028 Accrued payroll and benefits — 3,093 1,639 — 4,732 Accrued interest 6,094 2,012 — — 8,106 Deferred revenue — — 8,468 — 8,468 Other current liabilities — 5,765 21,285 — 27,050 Total current liabilities 6,094 15,337 56,911 — 78,342 LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS 323,895 648,812 — — 972,707 PENSION AND OTHER POSTRETIREMENT BENEFITS — 30,497 (685 ) — 29,812 LONG-TERM LEASE LIABILITY — 30,078 64,931 — 95,009 OTHER NON-CURRENT LIABILITIES — 9,604 57,536 — 67,140 INTERCOMPANY PAYABLE — — — — — TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,542,567 1,799,713 3,014,476 (4,814,189 ) 1,542,567 Noncontrolling interest — — 98,633 — 98,633 TOTAL SHAREHOLDERS’ EQUITY 1,542,567 1,799,713 3,113,109 (4,814,189 ) 1,641,200 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,872,556 $2,534,041 $3,291,802 ($4,814,189 ) $2,884,210 CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2018 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $361 $104,777 $43,236 — $148,374 Accounts receivable, less allowance for doubtful accounts — 3,752 22,399 — 26,151 Inventory — — 15,703 — 15,703 Prepaid expenses — 977 16,039 — 17,016 Other current assets — 108 501 — 609 Total current assets 361 109,614 97,878 — 207,853 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — 2,401,327 — 2,401,327 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS — — 85,609 — 85,609 NET PROPERTY, PLANT AND EQUIPMENT — 16,940 5,811 — 22,751 RESTRICTED CASH — — 8,080 — 8,080 INVESTMENT IN SUBSIDIARIES 1,833,899 3,022,875 — (4,856,774 ) — INTERCOMPANY RECEIVABLE 49,461 (638,424 ) 588,963 — — OTHER ASSETS 2 19,244 35,800 — 55,046 TOTAL ASSETS $1,883,723 $2,530,249 $3,223,468 ($4,856,774 ) $2,780,666 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable — $1,616 $16,403 — $18,019 Accrued taxes — 8 3,170 — 3,178 Accrued payroll and benefits — 5,848 4,568 — 10,416 Accrued interest 3,047 1,960 — — 5,007 Deferred revenue — — 10,447 — 10,447 Other current liabilities — 216 16,258 — 16,474 Total current liabilities 3,047 9,648 50,846 — 63,541 LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS 323,803 648,764 — — 972,567 PENSION AND OTHER POSTRETIREMENT BENEFITS — 30,484 (684 ) — 29,800 OTHER NON-CURRENT LIABILITIES — 7,454 52,754 — 60,208 TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,556,873 1,833,899 3,022,875 (4,856,774 ) 1,556,873 Noncontrolling interest — — 97,677 — 97,677 TOTAL SHAREHOLDERS’ EQUITY 1,556,873 1,833,899 3,120,552 (4,856,774 ) 1,654,550 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,883,723 $2,530,249 $3,223,468 ($4,856,774 ) $2,780,666 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended March 31, 2019 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES ($7,623 ) ($2,265 ) $80,805 — $70,917 INVESTING ACTIVITIES Capital expenditures — — (14,122 ) — (14,122 ) Real estate development investments — — (1,677 ) — (1,677 ) Purchase of timberlands — — (12,349 ) — (12,349 ) Investment in subsidiaries — 6,495 — (6,495 ) — Other — — 2,337 — 2,337 CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES — 6,495 (25,811 ) (6,495 ) (25,811 ) FINANCING ACTIVITIES Dividends paid (34,858 ) (19 ) — — (34,877 ) Proceeds from the issuance of common shares under incentive stock plan 597 — — — 597 Repurchase of common shares (33 ) — — (33 ) Other — — (16 ) — (16 ) Distribution to minority shareholder — — (3,594 ) — (3,594 ) Intercompany distributions 58,146 (10,183 ) (54,458 ) 6,495 — CASH USED FOR FINANCING ACTIVITIES 23,852 (10,202 ) (58,068 ) 6,495 (37,923 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH — — 843 — 843 CASH, CASH EQUIVALENTS AND RESTRICTED CASH Change in cash, cash equivalents and restricted cash 16,229 (5,972 ) (2,231 ) — 8,026 Balance, beginning of year 361 104,777 51,316 — 156,454 Balance, end of period $16,590 $98,805 $49,085 — $164,480 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For 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 (18 ) — — — (18 ) Intercompany distributions 13,660 (49,065 ) 3,751 31,654 — CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES (13,026 ) (75,065 ) 376 31,654 (56,061 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH — — 807 — 807 CASH, CASH EQUIVALENTS AND RESTRICTED CASH Change in cash, cash equivalents and restricted cash (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 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 |
Leases | ASU 2016-02 (ASC 842) The Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) , on January 1, 2019 and elected to apply the standard as of that day. As such, the Consolidated Balance Sheet as of March 31, 2019 includes right-of-use assets and lease liabilities related to the rights and obligations created by the Company’s long-term leases. Prior periods have not been restated. The Company applied the following practical expedients in the transition to the new standard and allowed under ASC 842-10-65-1: Practical Expedient Description Reassessment of expired or existing contracts The Company elected not to reassess, at the application date, whether any expired or existing contracts contained leases, the lease classification for any expired or existing leases, and the accounting for initial direct costs for any existing leases. Use of hindsight The Company elected to use hindsight in determining the lease term (that is, when considering options to extend or terminate the lease and to purchase the underlying asset) and in assessing impairment of right-to-use assets. Reassessment of existing or expired land easements The Company elected not to evaluate existing or expired land easements that were not previously accounted for as leases under ASC 840, as allowed under the transition practical expedient. Going forward, new or modified land easements will be evaluated under ASU No. 2016-02. See Note 3 — Leases |
New Accounting Standards | SUMMARY OF UPDATES TO SIGNIFICANT ACCOUNTING POLICIES For information on updated significant accounting policies due to the adoption of ASC 842, see Note 3 — Leases . For a full description of our other significant accounting policies, see Note 1 — Basis of Presentation in the 2018 Form 10-K. RECENTLY ADOPTED STANDARDS ASU 2016-02 (ASC 842) The Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) , on January 1, 2019 and elected to apply the standard as of that day. As such, the Consolidated Balance Sheet as of March 31, 2019 includes right-of-use assets and lease liabilities related to the rights and obligations created by the Company’s long-term leases. Prior periods have not been restated. The Company applied the following practical expedients in the transition to the new standard and allowed under ASC 842-10-65-1: Practical Expedient Description Reassessment of expired or existing contracts The Company elected not to reassess, at the application date, whether any expired or existing contracts contained leases, the lease classification for any expired or existing leases, and the accounting for initial direct costs for any existing leases. Use of hindsight The Company elected to use hindsight in determining the lease term (that is, when considering options to extend or terminate the lease and to purchase the underlying asset) and in assessing impairment of right-to-use assets. Reassessment of existing or expired land easements The Company elected not to evaluate existing or expired land easements that were not previously accounted for as leases under ASC 840, as allowed under the transition practical expedient. Going forward, new or modified land easements will be evaluated under ASU No. 2016-02. See Note 3 — Leases for additional qualitative and quantitative disclosures required under ASU No. 2016-02. OTHER RECENTLY ADOPTED STANDARDS The Company adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities in the first quarter ended March 31, 2019 with no material impact on the consolidated financial statements. The Company adopted ASU No 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Non-employee Share-Based Payment Accounting in the first quarter ended March 31, 2019 with no impact on the consolidated financial statements. NEW ACCOUNTING STANDARDS In the first quarter 2019, the Financial Accounting Standards Board (“FASB”) did not issue any Accounting Standard Updates which are expected to have a material retrospective or future effect on the consolidated financial statements. |
Subsequent Events | SUBSEQUENT EVENTS The Company has evaluated events occurring from March 31, 2019 |
Revenue Recognition | PERFORMANCE OBLIGATIONS 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 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, 2019 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. CONTRACT BALANCES |
Segment Reporting | Sales between operating segments are made based on estimated fair market value, and intercompany sales, purchases and profits (losses) are eliminated in consolidation. The Company evaluates financial performance based on segment operating income and Adjusted EBITDA. Asset information is not reported by segment, as the Company does not produce asset information by segment internally.Operating income as presented in the Consolidated Statements of Income and Comprehensive Income is equal to segment income. Certain income (loss) items in the Consolidated Statements of Income and Comprehensive Income are not allocated to segments. These items, which include interest income (expense), miscellaneous income (expenses) and income tax expense, are not considered by management to be part of segment operations and are included under “unallocated interest expense and other.” |
Derivatives | Accounting for derivative financial instruments is governed by ASC Topic 815, Derivatives and Hedging |
Offsetting Derivatives | OFFSETTING DERIVATIVESDerivative 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. Carbon option contracts — The fair value of carbon option contracts is determined by a mark-to-market valuation using the Black-Scholes option pricing model, 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 |
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, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Liabilities | The following table summarizes revenue recognized during the three months ended March 31, 2019 and 2018 that was included in the contract liability balance at the beginning of each year: Three Months Ended March 31, 2019 2018 Revenue recognized from contract liability balance at the beginning of the year (a) $5,356 $6,372 (a) |
Disaggregation of Revenue by Product | The following tables present our revenue from contracts with customers disaggregated by product type for the three months ended March 31, 2019 and 2018 : Three Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Elim. Total March 31, 2019 Pulpwood $26,799 $2,820 $8,767 — $4,326 — $42,712 Sawtimber 23,152 17,277 45,863 — 27,512 — 113,804 Hardwood 1,086 — — — — — 1,086 Total Timber Sales 51,037 20,097 54,630 — 31,838 — 157,602 License Revenue, Primarily From Hunting 4,026 4 53 — — — 4,083 Other Non-Timber/Carbon Revenue 5,783 434 2,447 — — — 8,664 Agency Fee Income — — — — 198 — 198 Total Non-Timber Sales 9,809 438 2,500 — 198 — 12,945 Improved Development — — — 341 — — 341 Unimproved Development — — — 1,000 — — 1,000 Rural — — — 12,665 — — 12,665 Non-strategic / Timberlands — — — 6,934 — — 6,934 Other — — — 59 — — 59 Total Real Estate Sales — — — 20,999 — — 20,999 Revenue from Contracts with Customers 60,846 20,535 57,130 20,999 32,036 — 191,546 Intersegment — — — — 29 (29 ) — Total Revenue $60,846 $20,535 $57,130 $20,999 $32,065 ($29 ) $191,546 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 1,364 862 2,323 — — — 4,549 Agency Fee Income — — — — 123 — 123 Total Non-Timber Sales 5,448 887 2,375 — 123 — 8,833 Improved Development — — — 1,121 — — 1,121 Unimproved Development — — — 7,446 — — 7,446 Rural — — — 1,652 — — 1,652 Non-strategic / Timberlands — — — 25,845 — — 25,845 Total Real Estate Sales — — — 36,064 — — 36,064 Revenue from Contracts with Customers 43,588 31,374 52,964 36,064 39,206 — 203,196 Intersegment — — — — 6 (6 ) — Total Revenue $43,588 $31,374 $52,964 $36,064 $39,212 ($6 ) $203,196 three months ended March 31, 2019 and 2018 : Three Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Trading Total March 31, 2019 Stumpage Pay-as-Cut $28,008 — — — $28,008 Stumpage Lump Sum 2,095 — — — 2,095 Total Stumpage 30,103 — — — 30,103 Delivered Wood (Domestic) 19,338 20,097 20,700 2,124 62,259 Delivered Wood (Export) 1,596 — 33,930 29,714 65,240 Total Delivered 20,934 20,097 54,630 31,838 127,499 Total Timber Sales $51,037 $20,097 $54,630 $31,838 $157,602 March 31, 2018 Stumpage Pay-as-Cut $22,511 — — — $22,511 Stumpage Lump Sum 1,818 5,106 — — 6,924 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 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Operating Lease Maturities | The following table details the Company’s undiscounted lease obligations as of March 31, 2019 by type of lease and year of expiration: Year of Expiration Lease obligations Total Remaining 2019 2020 2021 2022 2023 Thereafter Operating lease liabilities 198,899 8,623 10,071 9,217 8,321 8,285 154,382 Total Undiscounted Cash Flows 198,899 $8,623 $10,071 $9,217 $8,321 $8,285 $154,382 Imputed interest (93,224 ) Balance at March 31, 2019 105,675 Less: Current portion (10,666 ) Non-current portion at March 31, 2019 $95,009 |
Lease Cost | The following table details components of the Company’s lease cost for the three months ended March 31, 2019 : Three Months Ended March 31, Lease Cost Components 2019 Operating lease cost 2,437 Variable lease cost (a) 76 Total lease cost (b) $2,513 (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) Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for these leases are expensed on a straight line basis over the lease term. Short-term lease expense was not material for the three months ended March 31, 2019. The following table details components of the Company’s lease cost for the three months ended March 31, 2019 : Three Months Ended March 31, Supplemental cash flow information related to leases: 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases 973 Investing cash flows from operating leases 1,464 Total cash flows from operating leases $2,437 Weighted-average remaining lease term in years - operating leases 29 Weighted-average discount rate - operating leases 5 % The Company applied the following practical expedients upon adoption of the the new standard and allowed under ASC 842: Practical Expedient Description Short-term leases The Company does not record right-of-use assets or lease liabilities for short-term leases (a lease that at commencement date has a lease term of 12 months or less and does not contain a purchase option that is reasonably certain to be exercised). Separation of lease and non-lease components The Company does not separate non-lease components from the associated lease components if they have the same timing and pattern of transfer and, if accounted for separately, would both be classified as an operating lease |
SEGMENT AND GEOGRAPHICAL INFO_2
SEGMENT AND GEOGRAPHICAL INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following tables summarize the segment information for the three months ended March 31, 2019 and 2018 : Three Months Ended SALES 2019 2018 Southern Timber $60,846 $43,588 Pacific Northwest Timber 20,535 31,374 New Zealand Timber 57,130 52,964 Real Estate 20,999 36,064 Trading 32,065 39,212 Intersegment Eliminations (29 ) (6 ) Total $191,546 $203,196 Three Months Ended OPERATING INCOME (LOSS) 2019 2018 Southern Timber $21,520 $12,227 Pacific Northwest Timber (3,741 ) 4,674 New Zealand Timber 15,720 15,957 Real Estate 10,027 28,054 Trading 480 149 Corporate and other (5,486 ) (3,987 ) Total Operating Income 38,520 57,074 Unallocated interest expense and other (6,378 ) (7,432 ) Total Income before Income Taxes $32,142 $49,642 Three Months Ended DEPRECIATION, DEPLETION AND AMORTIZATION 2019 2018 Southern Timber $19,727 $15,979 Pacific Northwest Timber 6,826 9,504 New Zealand Timber 6,319 5,717 Real Estate 3,335 3,066 Corporate and other 284 271 Total $36,491 $34,537 Three Months Ended NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT 2019 2018 Real Estate 4,030 1,624 Total $4,030 $1,624 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | Rayonier’s debt consisted of the following at March 31, 2019 : March 31, 2019 Term Credit Agreement borrowings due 2024 at a variable interest rate of 4.1% at March 31, 2019 (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 4.4% at March 31, 2019 (b) 300,000 Total debt 975,000 Less: Deferred financing costs (2,293 ) Long-term debt, net of deferred financing costs $972,707 (a) As of March 31, 2019, 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, 2019, 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% |
Schedule of Maturities of Long-Term Debt | Principal payments due during the next five years and thereafter are as follows: 2019 — 2020 — 2021 — 2022 325,000 2023 — Thereafter 650,000 Total Debt $975,000 |
HIGHER AND BETTER USE TIMBERL_2
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2018 to March 31, 2019 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, 2018 $59,189 $26,420 $85,609 Plus: Current portion (a) 4,239 7,680 11,919 Total Balance at December 31, 2018 63,428 34,100 97,528 Non-cash cost of land and improved development (974 ) (233 ) (1,207 ) Timber depletion from harvesting activities and basis of timber sold in real estate sales (1,020 ) — (1,020 ) Capitalized real estate development investments (b) — 1,677 1,677 Capital expenditures (silviculture) 35 — 35 Intersegment transfers 16 — 16 Total Balance at March 31, 2019 61,485 35,544 97,029 Less: Current portion (a) (7,948 ) (12,794 ) (20,742 ) Non-current portion at March 31, 2019 $53,537 $22,750 $76,287 (a) The current portion of Higher and Better Use Timberlands and Real Estate Development Investments is recorded in Inventory. See Note 17 — Inventory for additional information. (b) Capitalized real estate development investments include $0.2 million |
COMMITMENTS (Tables)
COMMITMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Payments | At March 31, 2019 , the future minimum payments under non-cancellable commitments were as follows: Development Projects (a) Pension Contribution (b) Commitments (c) Total Remaining 2019 $2,130 $1,326 $950 $4,406 2020 — 442 254 696 2021 — — 46 46 2022 — — 3 3 2023 — — — — Thereafter — — — — $2,130 $1,768 $1,253 $5,151 (a) Consists of payments expected to be made on the Company’s Wildlight development project. (b) Pension contribution requirements are based on actuarially determined estimates and IRS minimum funding requirements. (c) |
INCOME TAXES INCOME TAXES (Tabl
INCOME TAXES INCOME TAXES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | The following table contains the income tax expense recognized on the Consolidated Statements of Income and Comprehensive Income. Three Months Ended 2019 2018 Income tax expense ($4,349 ) ($6,936 ) |
Schedule of Effective Income Tax Rate Reconciliation | The following table contains the Company’s annualized effective tax rate. Three Months Ended 2019 2018 Annualized effective tax rate 12.7 % 13.9 % |
GUARANTEES (Tables)
GUARANTEES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Guarantees [Abstract] | |
Schedule of Guarantor Obligations | As of March 31, 2019 , the following financial guarantees were outstanding: Financial Commitments (a) Maximum Potential Payment Standby letters of credit (b) $9,365 Surety bonds (c) 3,297 Total financial commitments $12,662 (a) The Company has not recorded any liabilities for these financial commitments in the Consolidated Balance Sheets. The guarantees are not subject to measurement, as the guarantees are dependent on the Company’s own performance. (b) Approximately $8.4 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 2019 and will be renewed as required. (c) |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 2018 Net Income $27,793 $42,706 Less: Net income attributable to noncontrolling interest (2,999 ) (2,167 ) Net income attributable to Rayonier Inc. $24,794 $40,539 Shares used for determining basic earnings per common share 129,172,925 128,801,210 Dilutive effect of: Stock options 19,696 78,475 Performance and restricted shares 557,660 672,712 Shares used for determining diluted earnings per common share 129,750,281 129,552,397 Basic earnings per common share attributable to Rayonier Inc.: $0.19 $0.31 Diluted earnings per common share attributable to Rayonier Inc.: $0.19 $0.31 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Three Months Ended 2019 2018 Anti-dilutive shares excluded from the computations of diluted earnings per share: Stock options and performance shares 438,273 171,819 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 : 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) |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables demonstrate the impact, gross of tax, of the Company’s derivatives on the Consolidated Statements of Income and Comprehensive Income for the three months ended March 31, 2019 and 2018 . Three Months Ended Income Statement Location 2019 2018 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other comprehensive (loss) income $1,119 $1,233 Foreign currency option contracts Other comprehensive (loss) income 77 181 Interest rate swaps Other comprehensive (loss) income (11,548 ) 15,598 Derivatives designated as a net investment hedge: Foreign currency exchange contract Other comprehensive (loss) income — 110 Derivatives not designated as hedging instruments: Foreign currency exchange contracts Interest and other miscellaneous income, net (16 ) 129 Carbon option contracts Interest and other miscellaneous income, net 402 — |
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, 2019 December 31, 2018 Derivatives designated as cash flow hedges: Foreign currency exchange contracts $77,500 $69,950 Foreign currency option contracts 24,000 24,000 Interest rate swaps 650,000 650,000 Derivative not designated as a hedging instrument: Foreign currency exchange contracts 4,082 9,396 Carbon options (a) 6,995 2,517 (a) Notional amount for carbon options is calculated as the number of units outstanding multiplied by the spot price as of March 31, 2019 |
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, 2019 December 31, 2018 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other current assets $150 — Other assets 42 — Other current liabilities (642 ) (1,569 ) Foreign currency option contracts Other current assets 296 217 Other assets — 102 Other current liabilities (73 ) (106 ) Other non-current liabilities — (68 ) Interest rate swaps Other assets 14,239 23,735 Other non-current liabilities (2,052 ) — Derivative not designated as a hedging instrument: Foreign currency exchange contracts Other current assets 51 152 Other current liabilities — (24 ) Carbon options Other current liabilities — (322 ) Other non-current liabilities (15 ) — Total derivative contracts: Other current assets $497 $369 Other assets 14,281 23,837 Total derivative assets $14,778 $24,206 Other current liabilities (715 ) (2,021 ) Other non-current liabilities (2,067 ) (68 ) Total derivative liabilities ($2,782 ) ($2,089 ) (a) See Note 14 — Fair Value Measurements |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and December 31, 2018 , using market information and what the Company believes to be appropriate valuation methodologies under GAAP: March 31, 2019 December 31, 2018 Asset (Liability) (a) Carrying Amount Fair Value Carrying Amount Fair Value Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $154,613 $154,613 — $148,374 $148,374 — Restricted cash (b) 9,867 9,867 — 8,080 8,080 — Long-term debt (c) (972,707 ) — (976,073 ) (972,567 ) — (975,845 ) Interest rate swaps (d) 12,187 — 12,187 23,735 — 23,735 Foreign currency exchange contracts (d) (399 ) — (399 ) (1,442 ) — (1,442 ) Foreign currency option contracts (d) 223 — 223 145 — 145 Carbon option contracts (d) (15 ) — (15 ) (322 ) — (322 ) (a) The Company did not have Level 3 assets or liabilities at March 31, 2019 and December 31, 2018 . (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 18 — Restricted Cash for additional information. (c) The carrying amount of long-term debt is presented net of capitalized debt costs on non-revolving debt. See Note 6 — Debt for additional information. (d) See Note 13 — Derivative Financial Instruments and Hedging Activities |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 Pension Postretirement Three Months Ended Three Months Ended 2019 2018 2019 2018 Service cost Selling and general expenses — — $1 $2 Interest cost Interest and other miscellaneous income, net 800 751 14 12 Expected return on plan assets (a) Interest and other miscellaneous income, net (777 ) (982 ) — — Amortization of losses Interest and other miscellaneous income, net 112 159 — 1 Net periodic benefit (credit) cost $135 ($72 ) $15 $15 (a) The weighted-average expected long-term rate of return on plan assets used in computing 2019 net periodic benefit cost for pension benefits is 5.7% |
OTHER OPERATING INCOME, NET (Ta
OTHER OPERATING INCOME, NET (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Interest and Other Income | Other operating income, net consisted of the following: Three Months Ended March 31, 2019 2018 Foreign currency income (expense) $82 ($753 ) Gain on sale or disposal of property and equipment 21 15 (Loss) gain on foreign currency exchange and option contracts (52 ) 1,433 Log trading marketing fees 57 70 Income from the sale of unused Internet Protocol addresses — 646 Miscellaneous expense, net (73 ) (42 ) Total $35 $1,369 |
INVENTORY (Tables)
INVENTORY (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | As of March 31, 2019 and December 31, 2018 , Rayonier’s inventory consisted entirely of finished goods, as follows: March 31, 2019 December 31, 2018 Finished goods inventory Real estate inventory (a) $20,742 $11,919 Log inventory 5,479 3,784 Total inventory $26,221 $15,703 (a) Represents cost of HBU real estate (including capitalized development investments) expected to be sold within 12 months. |
RESTRICTED CASH (Tables)
RESTRICTED CASH (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 : March 31, 2019 Restricted cash deposited with LKE intermediary $9,317 Restricted cash held in escrow 550 Total restricted cash shown in the Consolidated Balance Sheets 9,867 Cash and cash equivalents 154,613 Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows $164,480 |
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, 2019 : March 31, 2019 Restricted cash deposited with LKE intermediary $9,317 Restricted cash held in escrow 550 Total restricted cash shown in the Consolidated Balance Sheets 9,867 Cash and cash equivalents 154,613 Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows $164,480 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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, 2019 and the year ended December 31, 2018 . All amounts are presented net of tax and exclude portions attributable to noncontrolling interest. Foreign currency translation gains Net investment hedges of New Zealand subsidiary Cash flow hedges Employee benefit plans Total Balance as of December 31, 2017 $15,975 $1,665 $16,184 ($20,407 ) $13,417 Other comprehensive (loss) income before reclassifications (16,985 ) (344 ) 5,944 (a) (1,594 ) (12,979 ) Amounts reclassified from accumulated other comprehensive income (loss) — — (163 ) (36 ) (199 ) Net other comprehensive (loss)/income (16,985 ) (344 ) 5,781 (1,630 ) (13,178 ) Balance as of December 31, 2018 ($1,010 ) $1,321 $21,965 ($22,037 ) $239 Other comprehensive income/(loss) before reclassifications 4,680 — (10,648 ) (a) — (5,968 ) Amounts reclassified from accumulated other comprehensive income (loss) — — (236 ) 112 (b) (124 ) Net other comprehensive income/(loss) 4,680 — (10,884 ) 112 (6,092 ) Balance as of March 31, 2019 $3,670 $1,321 $11,081 ($21,925 ) ($5,853 ) (a) Includes $11.5 million of other comprehensive income related to interest rate swaps. See Note 13 — Derivative Financial Instruments and Hedging Activities for additional information. (b) This component of other comprehensive income (loss) is included in the computation of net periodic pension and post-retirement costs. See Note 15 — Employee Benefit Plans |
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, 2019 and March 31, 2018 : Details about accumulated other comprehensive income (loss) components Amount reclassified from accumulated other comprehensive income (loss) Affected line item in the income statement March 31, 2019 March 31, 2018 Realized gain on foreign currency exchange contracts ($412 ) ($1,297 ) Other operating income, net Realized gain on foreign currency option contracts (14 ) (136 ) Other operating income, net Noncontrolling interest 98 330 Comprehensive income attributable to noncontrolling interest Income tax expense from gain on foreign currency contracts 92 308 Income tax expense Net gain from accumulated other comprehensive income ($236 ) ($795 ) |
CONSOLIDATING FINANCIAL STATE_2
CONSOLIDATING FINANCIAL STATEMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Consolidating Statements of Income and Comprehensive Income | CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Three Months Ended March 31, 2019 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated SALES — — $191,546 — $191,546 Costs and Expenses Cost of sales — — (143,251 ) — (143,251 ) Selling and general expenses — (4,843 ) (4,967 ) — (9,810 ) Other operating (loss) income, net — — 35 — 35 — (4,843 ) (148,183 ) — (153,026 ) OPERATING (LOSS) INCOME — (4,843 ) 43,363 — 38,520 Interest expense (3,138 ) (4,547 ) (25 ) — (7,710 ) Interest and miscellaneous income (expense), net (457 ) 964 825 — 1,332 Equity in income from subsidiaries 28,389 37,432 — (65,821 ) — INCOME BEFORE INCOME TAXES 24,794 29,006 44,163 (65,821 ) 32,142 Income tax expense — (617 ) (3,732 ) — (4,349 ) NET INCOME 24,794 28,389 40,431 (65,821 ) 27,793 Less: Net income attributable to noncontrolling interest — — (2,999 ) — (2,999 ) NET INCOME ATTRIBUTABLE TO RAYONIER INC. 24,794 28,389 37,432 (65,821 ) 24,794 OTHER COMPREHENSIVE INCOME (LOSS) Foreign currency translation adjustment, net of income tax 4,679 (90 ) 6,122 (4,678 ) 6,033 Cash flow hedges, net of income tax (10,884 ) (11,548 ) 862 10,884 (10,686 ) Amortization of pension and postretirement plans, net of income tax 112 112 — (112 ) 112 Total other comprehensive income (loss) (6,093 ) (11,526 ) 6,984 6,094 (4,541 ) COMPREHENSIVE INCOME 18,701 16,863 47,415 (59,727 ) 23,252 Less: Comprehensive loss attributable to noncontrolling interest — — (4,551 ) — (4,551 ) COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. $18,701 $16,863 $42,864 ($59,727 ) $18,701 Three Months Ended March 31, 2018 Rayonier Inc. Subsidiary Guarantors Non- Consolidating 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 (loss) 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 (LOSS) 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 (loss) 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 |
Schedule of Condensed Consolidating Balance Sheets | CONDENSED CONSOLIDATING BALANCE SHEETS As of March 31, 2019 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $16,590 $98,805 $39,218 — $154,613 Accounts receivable, less allowance for doubtful accounts — 1,017 31,014 — 32,031 Inventory — — 26,221 — 26,221 Prepaid expenses — 1,130 16,153 — 17,283 Other current assets — 99 639 — 738 Total current assets 16,590 101,051 113,245 — 230,886 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — 2,395,625 — 2,395,625 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS — — 76,287 — 76,287 NET PROPERTY, PLANT AND EQUIPMENT — 16,690 5,851 — 22,541 RESTRICTED CASH — — 9,867 — 9,867 RIGHT OF USE ASSETS — 35,236 70,509 — 105,745 INVESTMENT IN SUBSIDIARIES 1,799,713 3,014,476 — (4,814,189 ) — INTERCOMPANY RECEIVABLE 56,251 (643,442 ) 587,191 — — OTHER ASSETS 2 10,030 33,227 — 43,259 TOTAL ASSETS $1,872,556 $2,534,041 $3,291,802 ($4,814,189 ) $2,884,210 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable — $4,403 $21,555 — $25,958 Accrued taxes — 64 3,964 — 4,028 Accrued payroll and benefits — 3,093 1,639 — 4,732 Accrued interest 6,094 2,012 — — 8,106 Deferred revenue — — 8,468 — 8,468 Other current liabilities — 5,765 21,285 — 27,050 Total current liabilities 6,094 15,337 56,911 — 78,342 LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS 323,895 648,812 — — 972,707 PENSION AND OTHER POSTRETIREMENT BENEFITS — 30,497 (685 ) — 29,812 LONG-TERM LEASE LIABILITY — 30,078 64,931 — 95,009 OTHER NON-CURRENT LIABILITIES — 9,604 57,536 — 67,140 INTERCOMPANY PAYABLE — — — — — TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,542,567 1,799,713 3,014,476 (4,814,189 ) 1,542,567 Noncontrolling interest — — 98,633 — 98,633 TOTAL SHAREHOLDERS’ EQUITY 1,542,567 1,799,713 3,113,109 (4,814,189 ) 1,641,200 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,872,556 $2,534,041 $3,291,802 ($4,814,189 ) $2,884,210 CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2018 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated ASSETS CURRENT ASSETS Cash and cash equivalents $361 $104,777 $43,236 — $148,374 Accounts receivable, less allowance for doubtful accounts — 3,752 22,399 — 26,151 Inventory — — 15,703 — 15,703 Prepaid expenses — 977 16,039 — 17,016 Other current assets — 108 501 — 609 Total current assets 361 109,614 97,878 — 207,853 TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION — — 2,401,327 — 2,401,327 HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS — — 85,609 — 85,609 NET PROPERTY, PLANT AND EQUIPMENT — 16,940 5,811 — 22,751 RESTRICTED CASH — — 8,080 — 8,080 INVESTMENT IN SUBSIDIARIES 1,833,899 3,022,875 — (4,856,774 ) — INTERCOMPANY RECEIVABLE 49,461 (638,424 ) 588,963 — — OTHER ASSETS 2 19,244 35,800 — 55,046 TOTAL ASSETS $1,883,723 $2,530,249 $3,223,468 ($4,856,774 ) $2,780,666 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Accounts payable — $1,616 $16,403 — $18,019 Accrued taxes — 8 3,170 — 3,178 Accrued payroll and benefits — 5,848 4,568 — 10,416 Accrued interest 3,047 1,960 — — 5,007 Deferred revenue — — 10,447 — 10,447 Other current liabilities — 216 16,258 — 16,474 Total current liabilities 3,047 9,648 50,846 — 63,541 LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS 323,803 648,764 — — 972,567 PENSION AND OTHER POSTRETIREMENT BENEFITS — 30,484 (684 ) — 29,800 OTHER NON-CURRENT LIABILITIES — 7,454 52,754 — 60,208 TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY 1,556,873 1,833,899 3,022,875 (4,856,774 ) 1,556,873 Noncontrolling interest — — 97,677 — 97,677 TOTAL SHAREHOLDERS’ EQUITY 1,556,873 1,833,899 3,120,552 (4,856,774 ) 1,654,550 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $1,883,723 $2,530,249 $3,223,468 ($4,856,774 ) $2,780,666 |
Schedule of Condensed Consolidating Statements of Cash Flows | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended March 31, 2019 Rayonier Inc. (Parent Issuer) Subsidiary Guarantors Non- guarantors Consolidating Adjustments Total Consolidated CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES ($7,623 ) ($2,265 ) $80,805 — $70,917 INVESTING ACTIVITIES Capital expenditures — — (14,122 ) — (14,122 ) Real estate development investments — — (1,677 ) — (1,677 ) Purchase of timberlands — — (12,349 ) — (12,349 ) Investment in subsidiaries — 6,495 — (6,495 ) — Other — — 2,337 — 2,337 CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES — 6,495 (25,811 ) (6,495 ) (25,811 ) FINANCING ACTIVITIES Dividends paid (34,858 ) (19 ) — — (34,877 ) Proceeds from the issuance of common shares under incentive stock plan 597 — — — 597 Repurchase of common shares (33 ) — — (33 ) Other — — (16 ) — (16 ) Distribution to minority shareholder — — (3,594 ) — (3,594 ) Intercompany distributions 58,146 (10,183 ) (54,458 ) 6,495 — CASH USED FOR FINANCING ACTIVITIES 23,852 (10,202 ) (58,068 ) 6,495 (37,923 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH — — 843 — 843 CASH, CASH EQUIVALENTS AND RESTRICTED CASH Change in cash, cash equivalents and restricted cash 16,229 (5,972 ) (2,231 ) — 8,026 Balance, beginning of year 361 104,777 51,316 — 156,454 Balance, end of period $16,590 $98,805 $49,085 — $164,480 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For 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 (18 ) — — — (18 ) Intercompany distributions 13,660 (49,065 ) 3,751 31,654 — CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES (13,026 ) (75,065 ) 376 31,654 (56,061 ) EFFECT OF EXCHANGE RATE CHANGES ON CASH — — 807 — 807 CASH, CASH EQUIVALENTS AND RESTRICTED CASH Change in cash, cash equivalents and restricted cash (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 — $177,688 |
REVENUE (Contract Liability) (D
REVENUE (Contract Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized from contract liability balance at the beginning of the year | $ 5,356 | $ 6,372 |
REVENUE (Disaggregation of Reve
REVENUE (Disaggregation of Revenue by Product) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | $ 191,546 | $ 203,196 |
Total Revenue | 191,546 | 203,196 |
Pulpwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 42,712 | 35,126 |
Sawtimber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 113,804 | 122,576 |
Hardwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 1,086 | 597 |
Timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 157,602 | 158,299 |
License Revenue, Primarily From Hunting | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 4,083 | 4,161 |
Other Non-Timber/Carbon Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 8,664 | 4,549 |
Agency Fee Income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 198 | 123 |
Non-timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 12,945 | 8,833 |
Improved Development | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 341 | 1,121 |
Unimproved Development | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 1,000 | 7,446 |
Rural | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 12,665 | 1,652 |
Non-strategic / Timberlands | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 6,934 | 25,845 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 59 | |
Real Estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 20,999 | 36,064 |
Operating Segments | Southern Timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 60,846 | 43,588 |
Total Revenue | 60,846 | 43,588 |
Operating Segments | Southern Timber | Pulpwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 26,799 | 21,606 |
Operating Segments | Southern Timber | Sawtimber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 23,152 | 15,937 |
Operating Segments | Southern Timber | Hardwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 1,086 | 597 |
Operating Segments | Southern Timber | Timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 51,037 | 38,140 |
Operating Segments | Southern Timber | License Revenue, Primarily From Hunting | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 4,026 | 4,084 |
Operating Segments | Southern Timber | Other Non-Timber/Carbon Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 5,783 | 1,364 |
Operating Segments | Southern Timber | Agency Fee Income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | 0 |
Operating Segments | Southern Timber | Non-timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 9,809 | 5,448 |
Operating Segments | Pacific Northwest Timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 20,535 | 31,374 |
Total Revenue | 20,535 | 31,374 |
Operating Segments | Pacific Northwest Timber | Pulpwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 2,820 | 3,419 |
Operating Segments | Pacific Northwest Timber | Sawtimber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 17,277 | 27,068 |
Operating Segments | Pacific Northwest Timber | Hardwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | 0 |
Operating Segments | Pacific Northwest Timber | Timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 20,097 | 30,487 |
Operating Segments | Pacific Northwest Timber | License Revenue, Primarily From Hunting | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 4 | 25 |
Operating Segments | Pacific Northwest Timber | Other Non-Timber/Carbon Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 434 | 862 |
Operating Segments | Pacific Northwest Timber | Agency Fee Income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | 0 |
Operating Segments | Pacific Northwest Timber | Non-timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 438 | 887 |
Operating Segments | New Zealand Timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 57,130 | 52,964 |
Total Revenue | 57,130 | 52,964 |
Operating Segments | New Zealand Timber | Pulpwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 8,767 | 5,844 |
Operating Segments | New Zealand Timber | Sawtimber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 45,863 | 44,745 |
Operating Segments | New Zealand Timber | Hardwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | 0 |
Operating Segments | New Zealand Timber | Timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 54,630 | 50,589 |
Operating Segments | New Zealand Timber | License Revenue, Primarily From Hunting | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 53 | 52 |
Operating Segments | New Zealand Timber | Other Non-Timber/Carbon Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 2,447 | 2,323 |
Operating Segments | New Zealand Timber | Agency Fee Income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | 0 |
Operating Segments | New Zealand Timber | Non-timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 2,500 | 2,375 |
Operating Segments | New Zealand Timber | Non-strategic / Timberlands | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | |
Operating Segments | Real Estate | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 20,999 | 36,064 |
Total Revenue | 20,999 | 36,064 |
Operating Segments | Real Estate | Improved Development | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 341 | 1,121 |
Operating Segments | Real Estate | Unimproved Development | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 1,000 | 7,446 |
Operating Segments | Real Estate | Rural | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 12,665 | 1,652 |
Operating Segments | Real Estate | Non-strategic / Timberlands | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 6,934 | 25,845 |
Operating Segments | Real Estate | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 59 | |
Operating Segments | Trading | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 32,036 | 39,206 |
Total Revenue | 32,065 | 39,212 |
Operating Segments | Trading | Pulpwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 4,326 | 4,257 |
Operating Segments | Trading | Sawtimber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 27,512 | 34,826 |
Operating Segments | Trading | Hardwood | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | 0 |
Operating Segments | Trading | Timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 31,838 | 39,083 |
Operating Segments | Trading | License Revenue, Primarily From Hunting | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | 0 |
Operating Segments | Trading | Other Non-Timber/Carbon Revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 0 | 0 |
Operating Segments | Trading | Agency Fee Income | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 198 | 123 |
Operating Segments | Trading | Non-timber | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | 198 | 123 |
Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | (29) | (6) |
Total Revenue | (29) | (6) |
Intersegment Eliminations | Trading | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from Contracts with Customers | $ 29 | $ 6 |
REVENUE (Disaggregation of Re_2
REVENUE (Disaggregation of Revenue by Contract Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | $ 191,546 | $ 203,196 |
Stumpage Pay-as-Cut | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 28,008 | 22,511 |
Stumpage Lump Sum | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 2,095 | 6,924 |
Total Stumpage | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 30,103 | 29,435 |
Total Delivered | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 127,499 | 128,864 |
Total Delivered | Domestic | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 62,259 | 59,798 |
Total Delivered | Foreign | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 65,240 | 69,066 |
Timber | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 157,602 | 158,299 |
Southern Timber | Stumpage Pay-as-Cut | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 28,008 | 22,511 |
Southern Timber | Stumpage Lump Sum | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 2,095 | 1,818 |
Southern Timber | Total Stumpage | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 30,103 | 24,329 |
Southern Timber | Total Delivered | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 20,934 | 13,811 |
Southern Timber | Total Delivered | Domestic | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 19,338 | 13,377 |
Southern Timber | Total Delivered | Foreign | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 1,596 | 434 |
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 | 0 | 5,106 |
Pacific Northwest Timber | Total Stumpage | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 0 | 5,106 |
Pacific Northwest Timber | Total Delivered | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 20,097 | 25,381 |
Pacific Northwest Timber | Total Delivered | Domestic | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 20,097 | 25,381 |
Pacific Northwest Timber | Total Delivered | Foreign | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 0 | 0 |
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 | 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 | 54,630 | 50,589 |
New Zealand Timber | Total Delivered | Domestic | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 20,700 | 20,103 |
New Zealand Timber | Total Delivered | Foreign | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 33,930 | 30,486 |
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 | Total Stumpage | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 0 | 0 |
Trading | Total Delivered | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 31,838 | 39,083 |
Trading | Total Delivered | Domestic | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | 2,124 | 937 |
Trading | Total Delivered | Foreign | ||
Disaggregation of Revenue [Line Items] | ||
Total Timber Sales | $ 29,714 | $ 38,146 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | 3 Months Ended |
Mar. 31, 2019alease | |
United States | Minimum | Timberland Leases | |
Lessee, Lease, Description [Line Items] | |
Contract terms, in years | 30 years |
United States | Maximum | Timberland Leases | |
Lessee, Lease, Description [Line Items] | |
Contract terms, in years | 65 years |
New Zealand | Minimum | Timberland Leases | |
Lessee, Lease, Description [Line Items] | |
Contract terms, in years | 30 years |
New Zealand | Maximum | Timberland Leases | |
Lessee, Lease, Description [Line Items] | |
Contract terms, in years | 99 years |
Matariki Crown Forest Licenses | |
Lessee, Lease, Description [Line Items] | |
Operating leases, renewal term | 1 year |
Matariki Crown Forest Licenses | Timberland Leases | |
Lessee, Lease, Description [Line Items] | |
Operating leases, renewal term | 35 years |
Matariki Crown Forest Licenses | Minimum | Timberland Leases | |
Lessee, Lease, Description [Line Items] | |
Lessee, Lease, Termination Period | 35 years |
Matariki Crown Forest Licenses | Maximum | Timberland Leases | |
Lessee, Lease, Description [Line Items] | |
Lessee, Lease, Termination Period | 45 years |
Matariki Crown Forest Licenses | New Zealand | |
Lessee, Lease, Description [Line Items] | |
Number of leases under termination notice | lease | 2 |
Leases Under Termination Notice, Acres | a | 9,000 |
Number of fixed term forest leases expiring | lease | 2 |
Fixed Term Forest Leases Expiring, Acres | a | 3,000 |
Number Of Forestry Rights Under Termination Notice | lease | 2 |
Forestry Rights Under Termination Notice, Acres | a | 33,000 |
LEASES - Lease Maturities (Deta
LEASES - Lease Maturities (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Remaining 2019 | $ 8,623 | |
2020 | 10,071 | |
2021 | 9,217 | |
2022 | 8,321 | |
2023 | 8,285 | |
Thereafter | 154,382 | |
Operating lease liabilities | 198,899 | |
Imputed interest | (93,224) | |
Balance at March 31, 2019 | 105,675 | |
Less: Current portion | (10,666) | |
Non-current portion at March 31, 2019 | $ 95,009 | $ 0 |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 2,437 |
Variable lease cost | 76 |
Total lease cost | $ 2,513 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flow (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 973 |
Investing cash flows from operating leases | 1,464 |
Total cash flows from operating leases | $ 2,437 |
Weighted-average remaining lease term in years - operating leases | 29 years |
Weighted-average discount rate - operating leases | 5.00% |
NEW ZEALAND SUBSIDIARY (Details
NEW ZEALAND SUBSIDIARY (Details) - Matariki Forestry Group a in Thousands | Mar. 31, 2019a |
Schedule of Equity Method Investments [Line Items] | |
Acres of timberland owned (acres) | 409 |
Step acquisition percentage equity interest in acquiree | 23.00% |
Rayonier | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 77.00% |
SEGMENT AND GEOGRAPHICAL INFO_3
SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Segment Sales) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
SALES | $ 191,546 | $ 203,196 |
Operating Segments | Southern Timber | ||
Segment Reporting Information [Line Items] | ||
SALES | 60,846 | 43,588 |
Operating Segments | Pacific Northwest Timber | ||
Segment Reporting Information [Line Items] | ||
SALES | 20,535 | 31,374 |
Operating Segments | New Zealand Timber | ||
Segment Reporting Information [Line Items] | ||
SALES | 57,130 | 52,964 |
Operating Segments | Real Estate | ||
Segment Reporting Information [Line Items] | ||
SALES | 20,999 | 36,064 |
Operating Segments | Trading | ||
Segment Reporting Information [Line Items] | ||
SALES | 32,065 | 39,212 |
Intersegment Eliminations | ||
Segment Reporting Information [Line Items] | ||
SALES | $ (29) | $ (6) |
SEGMENT AND GEOGRAPHICAL INFO_4
SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Operating Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total Operating Income | $ 38,520 | $ 57,074 |
Unallocated interest expense and other | (6,378) | (7,432) |
INCOME BEFORE INCOME TAXES | 32,142 | 49,642 |
Operating Segments | Southern Timber | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | 21,520 | 12,227 |
Operating Segments | Pacific Northwest Timber | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | (3,741) | 4,674 |
Operating Segments | New Zealand Timber | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | 15,720 | 15,957 |
Operating Segments | Real Estate | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | 10,027 | 28,054 |
Operating Segments | Trading | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | 480 | 149 |
Corporate and other | ||
Segment Reporting Information [Line Items] | ||
Total Operating Income | $ (5,486) | $ (3,987) |
SEGMENT AND GEOGRAPHICAL INFO_5
SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Depreciation, Depletion and Amortization) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
DEPRECIATION, DEPLETION AND AMORTIZATION | $ 36,491 | $ 34,537 |
Operating Segments | Southern Timber | ||
Segment Reporting Information [Line Items] | ||
DEPRECIATION, DEPLETION AND AMORTIZATION | 19,727 | 15,979 |
Operating Segments | Pacific Northwest Timber | ||
Segment Reporting Information [Line Items] | ||
DEPRECIATION, DEPLETION AND AMORTIZATION | 6,826 | 9,504 |
Operating Segments | New Zealand Timber | ||
Segment Reporting Information [Line Items] | ||
DEPRECIATION, DEPLETION AND AMORTIZATION | 6,319 | 5,717 |
Operating Segments | Real Estate | ||
Segment Reporting Information [Line Items] | ||
DEPRECIATION, DEPLETION AND AMORTIZATION | 3,335 | 3,066 |
Corporate and other | ||
Segment Reporting Information [Line Items] | ||
DEPRECIATION, DEPLETION AND AMORTIZATION | $ 284 | $ 271 |
SEGMENT AND GEOGRAPHICAL INFO_6
SEGMENT AND GEOGRAPHICAL INFORMATION (Schedule of Non-Cash Cost of Land and Improved Development) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT | $ 4,030 | $ 1,624 |
Real Estate | ||
Segment Reporting Information [Line Items] | ||
NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT | $ 4,030 | $ 1,624 |
DEBT (Schedule of Long Term Deb
DEBT (Schedule of Long Term Debt) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Total debt | $ 975,000 | |
Less: Deferred financing costs | (2,293) | |
Long-term debt, net of deferred financing costs | 972,707 | $ 972,567 |
Term Credit Agreement borrowings due 2024 at a variable interest rate of 4.1% at March 31, 2019 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 350,000 | |
Effective interest rate | 4.10% | |
Debt instrument, interest rate during period | 3.30% | |
Term Credit Agreement borrowings due 2024 at a variable interest rate of 4.1% at March 31, 2019 | 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 4.4% at March 31, 2019 | ||
Debt Instrument [Line Items] | ||
Total debt | $ 300,000 | |
Effective interest rate | 4.40% | |
Debt instrument, interest rate during period | 2.80% | |
Incremental Term Loan Agreement borrowings due 2026 at a variable interest rate of 4.4% at March 31, 2019 | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis points on periodic interest rate | 1.90% |
DEBT (Schedule of Long Term Mat
DEBT (Schedule of Long Term Maturities) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2019 | $ 0 |
2020 | 0 |
2021 | 0 |
2022 | 325,000 |
2023 | 0 |
Thereafter | 650,000 |
Total Debt | $ 975,000 |
DEBT (Narrative) (Details)
DEBT (Narrative) (Details) - 3 months ended Mar. 31, 2019 $ in Millions | USD ($) | NZD ($) |
Debt Instrument [Line Items] | ||
Proceeds from lines of credit | $ 0 | |
Repayments of lines of credit | 0 | |
Total debt | 975,000,000 | |
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] | ||
Remaining borrowing capacity | 190,600,000 | |
Working Capital Facility | ||
Debt Instrument [Line Items] | ||
Proceeds from lines of credit | 0 | |
Repayments of lines of credit | 0 | |
Remaining borrowing capacity | $ 20 | |
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 | $ 9,400,000 |
HIGHER AND BETTER USE TIMBERL_3
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Real Estate, Land and Land Development Costs [Roll Forward] | |
Non-current portion, Beginning Balance | $ 85,609 |
Plus: Current portion, Beginning Balance | 11,919 |
Total Balance, Beginning Balance | 97,528 |
Non-cash cost of land and improved development | (1,207) |
Timber depletion from harvesting activities and basis of timber sold in real estate sales | (1,020) |
Capitalized real estate development investments | 1,677 |
Capital expenditures (silviculture) | 35 |
Intersegment transfers | 16 |
Total Balance, Ending Balance | 97,029 |
Less: Current portion, Ending Balance | (20,742) |
Non-current portion, Ending Balance | 76,287 |
Capitalized interest | 200 |
Land and Timber | |
Real Estate, Land and Land Development Costs [Roll Forward] | |
Non-current portion, Beginning Balance | 59,189 |
Plus: Current portion, Beginning Balance | 4,239 |
Total Balance, Beginning Balance | 63,428 |
Non-cash cost of land and improved development | (974) |
Timber depletion from harvesting activities and basis of timber sold in real estate sales | (1,020) |
Capitalized real estate development investments | 0 |
Capital expenditures (silviculture) | 35 |
Intersegment transfers | 16 |
Total Balance, Ending Balance | 61,485 |
Less: Current portion, Ending Balance | (7,948) |
Non-current portion, Ending Balance | 53,537 |
Development Investments | |
Real Estate, Land and Land Development Costs [Roll Forward] | |
Non-current portion, Beginning Balance | 26,420 |
Plus: Current portion, Beginning Balance | 7,680 |
Total Balance, Beginning Balance | 34,100 |
Non-cash cost of land and improved development | (233) |
Timber depletion from harvesting activities and basis of timber sold in real estate sales | 0 |
Capitalized real estate development investments | 1,677 |
Capital expenditures (silviculture) | 0 |
Intersegment transfers | 0 |
Total Balance, Ending Balance | 35,544 |
Less: Current portion, Ending Balance | (12,794) |
Non-current portion, Ending Balance | $ 22,750 |
COMMITMENTS (Future Minimum Pay
COMMITMENTS (Future Minimum Payments) (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Commitments | |
Remaining 2019 | $ 4,406 |
2020 | 696 |
2021 | 46 |
2022 | 3 |
2023 | 0 |
Thereafter | 0 |
Commitments, total | 5,151 |
Development Projects | |
Commitments | |
Remaining 2019 | 2,130 |
2020 | 0 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Commitments, total | 2,130 |
Pension Contribution | |
Commitments | |
Remaining 2019 | 1,326 |
2020 | 442 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
Thereafter | 0 |
Commitments, total | 1,768 |
Commitments | |
Commitments | |
Remaining 2019 | 950 |
2020 | 254 |
2021 | 46 |
2022 | 3 |
2023 | 0 |
Thereafter | 0 |
Commitments, total | $ 1,253 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 4,349 | $ 6,936 |
Annualized effective tax rate | 12.70% | 13.90% |
GUARANTEES (Details)
GUARANTEES (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | $ 12,662 |
Standby letters of credit | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | 9,365 |
Letter of credit for development project | 8,400 |
Surety bonds | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | $ 3,297 |
EARNINGS PER COMMON SHARE (Sche
EARNINGS PER COMMON SHARE (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income | $ 27,793 | $ 42,706 |
Less: Net income attributable to noncontrolling interest | (2,999) | (2,167) |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | $ 24,794 | $ 40,539 |
Shares used for determining basic earnings per common share (in shares) | 129,172,925 | 128,801,210 |
Dilutive effect of: | ||
Stock options (in shares) | 19,696 | 78,475 |
Performance and restricted shares (in shares) | 557,660 | 672,712 |
Shares used for determining diluted earnings per common share (in shares) | 129,750,281 | 129,552,397 |
Basic earnings per common share attributable to Rayonier Inc. (in dollars per share) | $ 0.19 | $ 0.31 |
Diluted earnings per common share attributable to Rayonier Inc. (in dollars per share) | $ 0.19 | $ 0.31 |
EARNINGS PER COMMON SHARE (Anti
EARNINGS PER COMMON SHARE (Antidilutive Securities) (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Stock options and performance shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive shares excluded from the computations of diluted earnings per share (in shares) | 438,273 | 171,819 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
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 | $ (200) | |
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% | |
Percent of forecast sales and purchases hedged for three to 12 months | 25.00% | |
New Zealand JV | Minimum | Forecasted Sales and Purchases, term 1 | ||
Derivative [Line Items] | ||
Length of time, foreign currency cash flow hedge | 3 months | |
New Zealand JV | Minimum | Forecasted Sales and Purchases, term 2 | ||
Derivative [Line Items] | ||
Length of time, foreign currency cash flow hedge | 12 months | |
New Zealand JV | Maximum | ||
Derivative [Line Items] | ||
Percent of forecast sales and purchases hedged for 3 months | 90.00% | |
Percent of forecast sales and purchases hedged for three to 12 months | 75.00% | |
Percent of forecast sales and purchases hedged for 12 to 18 months | 50.00% | |
New Zealand JV | Maximum | Forecasted Sales and Purchases, term 1 | ||
Derivative [Line Items] | ||
Length of time, foreign currency cash flow hedge | 12 months | |
New Zealand JV | Maximum | Forecasted Sales and Purchases, term 2 | ||
Derivative [Line Items] | ||
Length of time, foreign currency cash flow hedge | 18 months | |
Interest and other miscellaneous income, net | Not Designated as Hedging Instrument | Carbon option | ||
Derivative [Line Items] | ||
Non-designated hedged item, gain (loss) recognized in income | $ 402 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Interest Rate Swaps) (Details) - Cash Flow Hedging - Designated as Hedging Instrument | 3 Months Ended |
Mar. 31, 2019USD ($) | |
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 INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Income Statement Location) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
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 | $ 1,119 | $ 1,233 |
Designated as Hedging Instrument | Foreign currency exchange contracts | Net Investment Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Designated hedged item, gain (loss) recognized in other comprehensive income | 0 | 110 |
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 | 77 | 181 |
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 | (11,548) | 15,598 |
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 | (16) | 129 |
Not Designated as Hedging Instrument | Carbon options | Interest and other miscellaneous income, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Non-designated hedged item, gain (loss) recognized in income | $ 402 | $ 0 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Notional Amounts) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 77,500 | $ 69,950 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency option contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 24,000 | 24,000 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 650,000 | 650,000 |
Not Designated as Hedging Instrument | Foreign currency exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 4,082 | 9,396 |
Not Designated as Hedging Instrument | Carbon option | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 6,995 | $ 2,517 |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Balance Sheet Location) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | $ 14,778 | $ 24,206 |
Fair value, derivative liability | (2,782) | (2,089) |
Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 497 | 369 |
Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 14,281 | 23,837 |
Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (715) | (2,021) |
Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (2,067) | (68) |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 150 | 0 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency exchange contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 42 | 0 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency exchange contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (642) | (1,569) |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency option contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 296 | 217 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency option contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 0 | 102 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign currency option contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (73) | (106) |
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 | (68) |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 14,239 | 23,735 |
Designated as Hedging Instrument | Cash Flow Hedging | Interest rate swaps | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (2,052) | 0 |
Not Designated as Hedging Instrument | Foreign currency exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 51 | 152 |
Not Designated as Hedging Instrument | Foreign currency exchange contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | 0 | (24) |
Not Designated as Hedging Instrument | Carbon options | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | 0 | (322) |
Not Designated as Hedging Instrument | Carbon options | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | $ (15) | $ 0 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carbon option contracts | $ 2,782 | $ 2,089 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 154,613 | 148,374 |
Restricted cash | 9,867 | 8,080 |
Long-term debt | (972,707) | (972,567) |
Carrying Amount | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 12,187 | 23,735 |
Carrying Amount | Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency exchange contracts | (399) | (1,442) |
Carrying Amount | Foreign currency option contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency option contracts | 223 | 145 |
Carrying Amount | Carbon options | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carbon option contracts | (15) | (322) |
Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 154,613 | 148,374 |
Restricted cash | 9,867 | 8,080 |
Long-term debt | 0 | 0 |
Fair Value | Level 1 | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 0 | 0 |
Fair Value | Level 1 | Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency exchange contracts | 0 | 0 |
Fair Value | Level 1 | Foreign currency option contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency option contracts | 0 | 0 |
Fair Value | Level 1 | Carbon options | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carbon option contracts | 0 | 0 |
Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Long-term debt | (976,073) | (975,845) |
Fair Value | Level 2 | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 12,187 | 23,735 |
Fair Value | Level 2 | Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency exchange contracts | (399) | (1,442) |
Fair Value | Level 2 | Foreign currency option contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency option contracts | 223 | 145 |
Fair Value | Level 2 | Carbon options | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Carbon option contracts | $ (15) | $ (322) |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019USD ($)pension_plan | Mar. 31, 2018USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||
Number of qualified defined benefit plans | pension_plan | 1 | |
Weighted-average expected long-term rate of return on plan assets | 5.70% | |
Pension | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension contributions paid | $ 0 | |
Minimum annual pension contribution | 1,300 | |
Service cost | 0 | $ 0 |
Interest cost | 800 | 751 |
Expected return on plan assets | (777) | (982) |
Amortization of losses | 112 | 159 |
Net periodic benefit (credit) cost | 135 | (72) |
Postretirement | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 1 | 2 |
Interest cost | 14 | 12 |
Expected return on plan assets | 0 | 0 |
Amortization of losses | 0 | 1 |
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, 2019 | Mar. 31, 2018 | |
Other Income and Expenses [Abstract] | ||
Foreign currency income (expense) | $ 82 | $ (753) |
Gain on sale or disposal of property and equipment | 21 | 15 |
(Loss) gain on foreign currency exchange and option contracts | (52) | 1,433 |
Log trading marketing fees | 57 | 70 |
Income from the sale of unused Internet Protocol addresses | 0 | 646 |
Miscellaneous expense, net | (73) | (42) |
Total | $ 35 | $ 1,369 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory [Line Items] | ||
Inventory | $ 26,221 | $ 15,703 |
Real Estate Inventory | ||
Inventory [Line Items] | ||
Inventory | 20,742 | 11,919 |
Log inventory | ||
Inventory [Line Items] | ||
Inventory | $ 5,479 | $ 3,784 |
RESTRICTED CASH - Narrative (De
RESTRICTED CASH - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Restricted Cash and Investments [Abstract] | ||
Maximum time period proceeds from LKE sale maintained with third party intermediary, days | 180 days | |
Restricted deposits | $ 9.9 | $ 8.1 |
RESTRICTED CASH - Schedule of R
RESTRICTED CASH - Schedule of Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total restricted cash shown in the Consolidated Balance Sheets | $ 9,867 | $ 8,080 | ||
Cash and cash equivalents | 154,613 | 148,374 | ||
Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows | 164,480 | $ 156,454 | $ 177,688 | $ 172,356 |
Restricted cash deposited with LKE intermediary | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total restricted cash shown in the Consolidated Balance Sheets | 9,317 | |||
Restricted cash held in escrow | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Total restricted cash shown in the Consolidated Balance Sheets | $ 550 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Schedule of Components) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | $ 1,556,873 | |
Other comprehensive income/(loss) before reclassifications | (5,968) | $ (12,979) |
Amounts reclassified from accumulated other comprehensive income (loss) | (124) | (199) |
Net other comprehensive income/(loss) | (6,092) | (13,178) |
Ending balance | 1,542,567 | 1,556,873 |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | 239 | 13,417 |
Ending balance | (5,853) | 239 |
Foreign currency translation gains | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (1,010) | 15,975 |
Other comprehensive income/(loss) before reclassifications | 4,680 | (16,985) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 |
Net other comprehensive income/(loss) | 4,680 | (16,985) |
Ending balance | 3,670 | (1,010) |
Net investment hedges of New Zealand subsidiary | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | 1,321 | 1,665 |
Other comprehensive income/(loss) before reclassifications | 0 | (344) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 |
Net other comprehensive income/(loss) | 0 | (344) |
Ending balance | 1,321 | 1,321 |
Cash flow hedges | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | 21,965 | 16,184 |
Other comprehensive income/(loss) before reclassifications | (10,648) | 5,944 |
Amounts reclassified from accumulated other comprehensive income (loss) | (236) | (163) |
Net other comprehensive income/(loss) | (10,884) | 5,781 |
Ending balance | 11,081 | 21,965 |
Cash flow hedges | Interest rate swaps | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Other comprehensive income/(loss) before reclassifications | 11,500 | |
Employee benefit plans | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (22,037) | (20,407) |
Other comprehensive income/(loss) before reclassifications | 0 | (1,594) |
Amounts reclassified from accumulated other comprehensive income (loss) | 112 | (36) |
Net other comprehensive income/(loss) | 112 | (1,630) |
Ending balance | $ (21,925) | $ (22,037) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (Reclassified AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other operating (loss) income, net | $ 35 | $ 1,369 | |
Comprehensive income attributable to noncontrolling interest | (4,551) | (4,483) | |
Income tax expense | (4,349) | (6,936) | |
Net gain from accumulated other comprehensive income | (124) | $ (199) | |
Cash flow hedges | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Net gain from accumulated other comprehensive income | (236) | (795) | |
Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Comprehensive income attributable to noncontrolling interest | 98 | 330 | |
Income tax expense | 92 | 308 | |
Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Foreign currency exchange contracts | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other operating (loss) income, net | (412) | (1,297) | |
Cash flow hedges | Reclassification out of Accumulated Other Comprehensive Income | Foreign currency option contracts | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Other operating (loss) income, net | $ (14) | $ (136) |
CONSOLIDATING FINANCIAL STATE_3
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 STATE_4
CONSOLIDATING FINANCIAL STATEMENTS (Income and Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Condensed Statement of Income Captions [Line Items] | ||
SALES | $ 191,546 | $ 203,196 |
Costs and Expenses | ||
Cost of sales | (143,251) | (138,488) |
Selling and general expenses | (9,810) | (9,003) |
Other operating (loss) income, net | 35 | 1,369 |
Costs and Expenses, Total | (153,026) | (146,122) |
OPERATING INCOME | 38,520 | 57,074 |
Interest expense | (7,710) | (8,052) |
Interest and miscellaneous income (expense), net | 1,332 | 620 |
Equity in income from subsidiaries | 0 | 0 |
INCOME BEFORE INCOME TAXES | 32,142 | 49,642 |
Income tax expense | (4,349) | (6,936) |
NET INCOME | 27,793 | 42,706 |
Less: Net income attributable to noncontrolling interest | (2,999) | (2,167) |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 24,794 | 40,539 |
Foreign currency translation adjustment, net of income tax | 6,033 | 9,688 |
Cash flow hedges, net of income tax | (10,686) | 16,615 |
Amortization of pension and postretirement plans, net of income tax | 112 | 159 |
Total other comprehensive (loss) income | (4,541) | 26,462 |
COMPREHENSIVE INCOME | 23,252 | 69,168 |
Less: Comprehensive income attributable to noncontrolling interest | (4,551) | (4,483) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | 18,701 | 64,685 |
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 (loss) 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 | (65,821) | (89,891) |
INCOME BEFORE INCOME TAXES | (65,821) | (89,891) |
Income tax expense | 0 | 0 |
NET INCOME | (65,821) | (89,891) |
Less: Net income attributable to noncontrolling interest | 0 | 0 |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | (65,821) | (89,891) |
Foreign currency translation adjustment, net of income tax | (4,678) | (7,606) |
Cash flow hedges, net of income tax | 10,884 | (16,381) |
Amortization of pension and postretirement plans, net of income tax | (112) | (159) |
Total other comprehensive (loss) income | 6,094 | (24,146) |
COMPREHENSIVE INCOME | (59,727) | (114,037) |
Less: Comprehensive income attributable to noncontrolling interest | 0 | 0 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | (59,727) | (114,037) |
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 (loss) income, net | 0 | (13) |
Costs and Expenses, Total | 0 | (13) |
OPERATING INCOME | 0 | (13) |
Interest expense | (3,138) | (3,139) |
Interest and miscellaneous income (expense), net | (457) | 2,628 |
Equity in income from subsidiaries | 28,389 | 41,063 |
INCOME BEFORE INCOME TAXES | 24,794 | 40,539 |
Income tax expense | 0 | 0 |
NET INCOME | 24,794 | 40,539 |
Less: Net income attributable to noncontrolling interest | 0 | 0 |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 24,794 | 40,539 |
Foreign currency translation adjustment, net of income tax | 4,679 | 7,606 |
Cash flow hedges, net of income tax | (10,884) | 16,381 |
Amortization of pension and postretirement plans, net of income tax | 112 | 159 |
Total other comprehensive (loss) income | (6,093) | 24,146 |
COMPREHENSIVE INCOME | 18,701 | 64,685 |
Less: Comprehensive income attributable to noncontrolling interest | 0 | 0 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | 18,701 | 64,685 |
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 | (4,843) | (4,389) |
Other operating (loss) income, net | 0 | 635 |
Costs and Expenses, Total | (4,843) | (3,754) |
OPERATING INCOME | (4,843) | (3,754) |
Interest expense | (4,547) | (4,653) |
Interest and miscellaneous income (expense), net | 964 | 765 |
Equity in income from subsidiaries | 37,432 | 48,828 |
INCOME BEFORE INCOME TAXES | 29,006 | 41,186 |
Income tax expense | (617) | (123) |
NET INCOME | 28,389 | 41,063 |
Less: Net income attributable to noncontrolling interest | 0 | 0 |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 28,389 | 41,063 |
Foreign currency translation adjustment, net of income tax | (90) | 111 |
Cash flow hedges, net of income tax | (11,548) | 15,598 |
Amortization of pension and postretirement plans, net of income tax | 112 | 159 |
Total other comprehensive (loss) income | (11,526) | 15,868 |
COMPREHENSIVE INCOME | 16,863 | 56,931 |
Less: Comprehensive income attributable to noncontrolling interest | 0 | 0 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | 16,863 | 56,931 |
Non- guarantors | Reportable Legal Entities | ||
Condensed Statement of Income Captions [Line Items] | ||
SALES | 191,546 | 203,196 |
Costs and Expenses | ||
Cost of sales | (143,251) | (138,488) |
Selling and general expenses | (4,967) | (4,614) |
Other operating (loss) income, net | 35 | 747 |
Costs and Expenses, Total | (148,183) | (142,355) |
OPERATING INCOME | 43,363 | 60,841 |
Interest expense | (25) | (260) |
Interest and miscellaneous income (expense), net | 825 | (2,773) |
Equity in income from subsidiaries | 0 | 0 |
INCOME BEFORE INCOME TAXES | 44,163 | 57,808 |
Income tax expense | (3,732) | (6,813) |
NET INCOME | 40,431 | 50,995 |
Less: Net income attributable to noncontrolling interest | (2,999) | (2,167) |
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | 37,432 | 48,828 |
Foreign currency translation adjustment, net of income tax | 6,122 | 9,577 |
Cash flow hedges, net of income tax | 862 | 1,017 |
Amortization of pension and postretirement plans, net of income tax | 0 | 0 |
Total other comprehensive (loss) income | 6,984 | 10,594 |
COMPREHENSIVE INCOME | 47,415 | 61,589 |
Less: Comprehensive income attributable to noncontrolling interest | (4,551) | (4,483) |
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC. | $ 42,864 | $ 57,106 |
CONSOLIDATING FINANCIAL STATE_5
CONSOLIDATING FINANCIAL STATEMENTS (Balance Sheets) (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS | ||||
Cash and cash equivalents | $ 154,613 | $ 148,374 | ||
Accounts receivable, less allowance for doubtful accounts | 32,031 | 26,151 | ||
Inventory | 26,221 | 15,703 | ||
Prepaid expenses | 17,283 | 17,016 | ||
Other current assets | 738 | 609 | ||
Total current assets | 230,886 | 207,853 | ||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 2,395,625 | 2,401,327 | ||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 76,287 | 85,609 | ||
NET PROPERTY, PLANT AND EQUIPMENT | 22,541 | 22,751 | ||
RESTRICTED CASH | 9,867 | 8,080 | ||
RIGHT OF USE ASSETS (NOTE 3) | 105,745 | 0 | ||
INVESTMENT IN SUBSIDIARIES | 0 | 0 | ||
INTERCOMPANY RECEIVABLE | 0 | 0 | ||
OTHER ASSETS | 43,259 | 55,046 | ||
TOTAL ASSETS | 2,884,210 | 2,780,666 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 25,958 | 18,019 | ||
Accrued taxes | 4,028 | 3,178 | ||
Accrued payroll and benefits | 4,732 | 10,416 | ||
Accrued interest | 8,106 | 5,007 | ||
Deferred revenue | 8,468 | 10,447 | ||
Other current liabilities | 27,050 | 16,474 | ||
Total current liabilities | 78,342 | 63,541 | ||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 972,707 | 972,567 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 29,812 | 29,800 | ||
LONG-TERM LEASE LIABILITY (NOTE 3) | 95,009 | 0 | ||
OTHER NON-CURRENT LIABILITIES | 67,140 | 60,208 | ||
INTERCOMPANY PAYABLE | 0 | |||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,542,567 | 1,556,873 | ||
Noncontrolling interest | 98,633 | 97,677 | ||
TOTAL SHAREHOLDERS’ EQUITY | 1,641,200 | 1,654,550 | $ 1,736,173 | $ 1,692,940 |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,884,210 | 2,780,666 | ||
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 | ||
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 | ||
RIGHT OF USE ASSETS (NOTE 3) | 0 | |||
INVESTMENT IN SUBSIDIARIES | (4,814,189) | (4,856,774) | ||
INTERCOMPANY RECEIVABLE | 0 | 0 | ||
OTHER ASSETS | 0 | 0 | ||
TOTAL ASSETS | (4,814,189) | (4,856,774) | ||
CURRENT LIABILITIES | ||||
Accounts payable | 0 | 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 | ||
LONG-TERM LEASE LIABILITY (NOTE 3) | 0 | |||
OTHER NON-CURRENT LIABILITIES | 0 | 0 | ||
INTERCOMPANY PAYABLE | 0 | |||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | (4,814,189) | (4,856,774) | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL SHAREHOLDERS’ EQUITY | (4,814,189) | (4,856,774) | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | (4,814,189) | (4,856,774) | ||
Rayonier Inc. (Parent Issuer) | Reportable Legal Entities | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 16,590 | 361 | ||
Accounts receivable, less allowance for doubtful accounts | 0 | 0 | ||
Inventory | 0 | 0 | ||
Prepaid expenses | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Total current assets | 16,590 | 361 | ||
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 | ||
RIGHT OF USE ASSETS (NOTE 3) | 0 | |||
INVESTMENT IN SUBSIDIARIES | 1,799,713 | 1,833,899 | ||
INTERCOMPANY RECEIVABLE | 56,251 | 49,461 | ||
OTHER ASSETS | 2 | 2 | ||
TOTAL ASSETS | 1,872,556 | 1,883,723 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 0 | 0 | ||
Accrued taxes | 0 | 0 | ||
Accrued payroll and benefits | 0 | 0 | ||
Accrued interest | 6,094 | 3,047 | ||
Deferred revenue | 0 | 0 | ||
Other current liabilities | 0 | 0 | ||
Total current liabilities | 6,094 | 3,047 | ||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 323,895 | 323,803 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 0 | 0 | ||
LONG-TERM LEASE LIABILITY (NOTE 3) | 0 | |||
OTHER NON-CURRENT LIABILITIES | 0 | 0 | ||
INTERCOMPANY PAYABLE | 0 | |||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,542,567 | 1,556,873 | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL SHAREHOLDERS’ EQUITY | 1,542,567 | 1,556,873 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 1,872,556 | 1,883,723 | ||
Subsidiary Guarantors | Reportable Legal Entities | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 98,805 | 104,777 | ||
Accounts receivable, less allowance for doubtful accounts | 1,017 | 3,752 | ||
Inventory | 0 | 0 | ||
Prepaid expenses | 1,130 | 977 | ||
Other current assets | 99 | 108 | ||
Total current assets | 101,051 | 109,614 | ||
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 | 16,690 | 16,940 | ||
RESTRICTED CASH | 0 | 0 | ||
RIGHT OF USE ASSETS (NOTE 3) | 35,236 | |||
INVESTMENT IN SUBSIDIARIES | 3,014,476 | 3,022,875 | ||
INTERCOMPANY RECEIVABLE | (643,442) | (638,424) | ||
OTHER ASSETS | 10,030 | 19,244 | ||
TOTAL ASSETS | 2,534,041 | 2,530,249 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 4,403 | 1,616 | ||
Accrued taxes | 64 | 8 | ||
Accrued payroll and benefits | 3,093 | 5,848 | ||
Accrued interest | 2,012 | 1,960 | ||
Deferred revenue | 0 | 0 | ||
Other current liabilities | 5,765 | 216 | ||
Total current liabilities | 15,337 | 9,648 | ||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 648,812 | 648,764 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 30,497 | 30,484 | ||
LONG-TERM LEASE LIABILITY (NOTE 3) | 30,078 | |||
OTHER NON-CURRENT LIABILITIES | 9,604 | 7,454 | ||
INTERCOMPANY PAYABLE | 0 | |||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,799,713 | 1,833,899 | ||
Noncontrolling interest | 0 | 0 | ||
TOTAL SHAREHOLDERS’ EQUITY | 1,799,713 | 1,833,899 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 2,534,041 | 2,530,249 | ||
Non- guarantors | Reportable Legal Entities | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 39,218 | 43,236 | ||
Accounts receivable, less allowance for doubtful accounts | 31,014 | 22,399 | ||
Inventory | 26,221 | 15,703 | ||
Prepaid expenses | 16,153 | 16,039 | ||
Other current assets | 639 | 501 | ||
Total current assets | 113,245 | 97,878 | ||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 2,395,625 | 2,401,327 | ||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT COSTS | 76,287 | 85,609 | ||
NET PROPERTY, PLANT AND EQUIPMENT | 5,851 | 5,811 | ||
RESTRICTED CASH | 9,867 | 8,080 | ||
RIGHT OF USE ASSETS (NOTE 3) | 70,509 | |||
INVESTMENT IN SUBSIDIARIES | 0 | 0 | ||
INTERCOMPANY RECEIVABLE | 587,191 | 588,963 | ||
OTHER ASSETS | 33,227 | 35,800 | ||
TOTAL ASSETS | 3,291,802 | 3,223,468 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 21,555 | 16,403 | ||
Accrued taxes | 3,964 | 3,170 | ||
Accrued payroll and benefits | 1,639 | 4,568 | ||
Accrued interest | 0 | 0 | ||
Deferred revenue | 8,468 | 10,447 | ||
Other current liabilities | 21,285 | 16,258 | ||
Total current liabilities | 56,911 | 50,846 | ||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 0 | 0 | ||
PENSION AND OTHER POSTRETIREMENT BENEFITS | (685) | (684) | ||
LONG-TERM LEASE LIABILITY (NOTE 3) | 64,931 | |||
OTHER NON-CURRENT LIABILITIES | 57,536 | 52,754 | ||
INTERCOMPANY PAYABLE | 0 | |||
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 3,014,476 | 3,022,875 | ||
Noncontrolling interest | 98,633 | 97,677 | ||
TOTAL SHAREHOLDERS’ EQUITY | 3,113,109 | 3,120,552 | ||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ 3,291,802 | $ 3,223,468 |
CONSOLIDATING FINANCIAL STATE_6
CONSOLIDATING FINANCIAL STATEMENTS (Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Cash Flows [Abstract] | ||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | $ 70,917 | $ 78,235 |
INVESTING ACTIVITIES | ||
Capital expenditures | (14,122) | (13,192) |
Real estate development costs | (1,677) | (2,340) |
Purchase of timberlands | (12,349) | (12) |
Investment in Subsidiaries | 0 | 0 |
Other | 2,337 | (2,105) |
CASH USED FOR INVESTING ACTIVITIES | (25,811) | (17,649) |
FINANCING ACTIVITIES | ||
Repayment of debt | 0 | (29,375) |
Dividends paid | (34,877) | (32,123) |
Proceeds from the issuance of common shares under incentive stock plan | 597 | 5,455 |
Repurchase of common shares | (33) | (18) |
Proceeds from shareholder distribution hedge | (16) | |
Distribution to minority shareholder | (3,594) | 0 |
Intercompany distributions | 0 | 0 |
CASH USED FOR FINANCING ACTIVITIES | (37,923) | (56,061) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 843 | 807 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ||
Change in cash, cash equivalents and restricted cash | 8,026 | 5,332 |
Balance, beginning of year | 156,454 | 172,356 |
Balance, end of period | 164,480 | 177,688 |
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 |
Investment in Subsidiaries | (6,495) | (31,654) |
Other | 0 | 0 |
CASH USED FOR INVESTING ACTIVITIES | (6,495) | (31,654) |
FINANCING ACTIVITIES | ||
Repayment of debt | 0 | |
Dividends paid | 0 | 0 |
Proceeds from the issuance of common shares under incentive stock plan | 0 | 0 |
Repurchase of common shares | 0 | 0 |
Proceeds from shareholder distribution hedge | 0 | |
Distribution to minority shareholder | 0 | |
Intercompany distributions | 6,495 | 31,654 |
CASH USED FOR FINANCING ACTIVITIES | 6,495 | 31,654 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 0 | 0 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ||
Change in cash, cash equivalents and restricted cash | 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 | (7,623) | (701) |
INVESTING ACTIVITIES | ||
Capital expenditures | 0 | 0 |
Real estate development costs | 0 | 0 |
Purchase of timberlands | 0 | 0 |
Investment in Subsidiaries | 0 | 0 |
Other | 0 | 0 |
CASH USED FOR INVESTING ACTIVITIES | 0 | 0 |
FINANCING ACTIVITIES | ||
Repayment of debt | 0 | |
Dividends paid | (34,858) | (32,123) |
Proceeds from the issuance of common shares under incentive stock plan | 597 | 5,455 |
Repurchase of common shares | (33) | (18) |
Proceeds from shareholder distribution hedge | 0 | |
Distribution to minority shareholder | 0 | |
Intercompany distributions | 58,146 | 13,660 |
CASH USED FOR FINANCING ACTIVITIES | 23,852 | (13,026) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 0 | 0 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ||
Change in cash, cash equivalents and restricted cash | 16,229 | (13,727) |
Balance, beginning of year | 361 | 48,564 |
Balance, end of period | 16,590 | 34,837 |
Subsidiary Guarantors | Reportable Legal Entities | ||
Statement of Cash Flows [Abstract] | ||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | (2,265) | 37,055 |
INVESTING ACTIVITIES | ||
Capital expenditures | 0 | (35) |
Real estate development costs | 0 | 0 |
Purchase of timberlands | 0 | 0 |
Investment in Subsidiaries | 6,495 | 31,654 |
Other | 0 | 0 |
CASH USED FOR INVESTING ACTIVITIES | 6,495 | 31,619 |
FINANCING ACTIVITIES | ||
Repayment of debt | (26,000) | |
Dividends paid | (19) | 0 |
Proceeds from the issuance of common shares under incentive stock plan | 0 | 0 |
Repurchase of common shares | 0 | 0 |
Proceeds from shareholder distribution hedge | 0 | |
Distribution to minority shareholder | 0 | |
Intercompany distributions | (10,183) | (49,065) |
CASH USED FOR FINANCING ACTIVITIES | (10,202) | (75,065) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 0 | 0 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ||
Change in cash, cash equivalents and restricted cash | (5,972) | (6,391) |
Balance, beginning of year | 104,777 | 25,042 |
Balance, end of period | 98,805 | 18,651 |
Non- guarantors | Reportable Legal Entities | ||
Statement of Cash Flows [Abstract] | ||
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES | 80,805 | 41,881 |
INVESTING ACTIVITIES | ||
Capital expenditures | (14,122) | (13,157) |
Real estate development costs | (1,677) | (2,340) |
Purchase of timberlands | (12,349) | (12) |
Investment in Subsidiaries | 0 | 0 |
Other | 2,337 | (2,105) |
CASH USED FOR INVESTING ACTIVITIES | (25,811) | (17,614) |
FINANCING ACTIVITIES | ||
Repayment of debt | (3,375) | |
Dividends paid | 0 | 0 |
Proceeds from the issuance of common shares under incentive stock plan | 0 | 0 |
Repurchase of common shares | 0 | |
Proceeds from shareholder distribution hedge | (16) | |
Distribution to minority shareholder | (3,594) | |
Intercompany distributions | (54,458) | 3,751 |
CASH USED FOR FINANCING ACTIVITIES | (58,068) | 376 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 843 | 807 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ||
Change in cash, cash equivalents and restricted cash | (2,231) | 25,450 |
Balance, beginning of year | 51,316 | 98,750 |
Balance, end of period | $ 49,085 | $ 124,200 |