EXHIBIT 12
RAYONIER INC. AND SUBSIDIARIES
RATIO OF EARNINGS TO FIXED CHARGES
(Unaudited, thousands of dollars)
For the Years Ended December 31, | |||||||||||||||||
2008 | 2007 | 2006 | 2005 | 2004 | |||||||||||||
Earnings: | |||||||||||||||||
Income from continuing operations(1) | $ | 159,634 | $ | 173,169 | $ | 164,627 | $ | 147,191 | $ | 186,804 | |||||||
Add: | |||||||||||||||||
Income tax expense (benefit)(1) | 20,312 | 23,123 | 18,423 | (3,235 | ) | (65,291 | ) | ||||||||||
Amortization of capitalized interest | 45 | 1,871 | 2,004 | 1,876 | 2,408 | ||||||||||||
179,991 | 198,163 | 185,054 | 145,832 | 123,921 | |||||||||||||
Adjustments to earnings for fixed charges: | |||||||||||||||||
Interest and other financial charges | 45,292 | 56,329 | 48,905 | 46,961 | 46,718 | ||||||||||||
Interest factor attributable to rentals | 761 | 496 | 636 | 722 | 476 | ||||||||||||
46,053 | 56,825 | 49,541 | 47,683 | 47,194 | |||||||||||||
Earnings as adjusted | $ | 226,044 | $ | 254,988 | $ | 234,595 | $ | 193,515 | $ | 171,115 | |||||||
Fixed Charges: | |||||||||||||||||
Fixed charges above | $ | 46,053 | $ | 56,825 | $ | 49,541 | $ | 47,683 | $ | 47,194 | |||||||
Capitalized interest | 0 | 32 | 1,020 | — | — | ||||||||||||
Total fixed charges | $ | 46,053 | $ | 56,857 | $ | 50,561 | $ | 47,683 | $ | 47,194 | |||||||
Ratio of earnings as adjusted to total fixed charges | 4.91 | 4.48 | 4.64 | 4.06 | 3.63 | ||||||||||||
(1) | Years 2004 through 2007 have been restated for the effect of the discontinued operations (See Item 1—Business, Discontinued Operations and Dispositions). |