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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
DATE OF REPORT -- OCTOBER 9, 1996
COMMISSION FILE NUMBER 1-6780
RAYONIER INC.
Incorporated in the State of North Carolina
I.R.S. Employer Identification Number l3-2607329
l177 Summer Street, Stamford, Connecticut 06905-5529
(Principal Executive Office)
Telephone Number: (203) 348-7000
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RAYONIER INC.
TABLE OF CONTENTS
PAGE
Item 5. Other Events 1
Item 7. Financial Statements and Exhibits 1
Signature 2
Exhibit Index 3
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ITEM 5. OTHER EVENTS
The company understands that the American Institute of Certified Public
Accountants will shortly issue a Statement of Position (SOP), which becomes part
of generally accepted accounting principles, for environmental remediation
liabilities that more specifically identifies future, long term monitoring and
administration expenditures as remediation liabilities that need to be accrued
on the balance sheet as an existing obligation.
Although the company had accrued its best estimate of clean-up and closure
remediation liabilities associated with its discontinued Southern Wood Piedmont
wood treating business (discontinued in 1986), it has been treating the 25-30
year long term monitoring expenditures as a current expense in its income
statement. Conformance with the SOP is expected to be mandatory in 1997. Based
on analyzing the requirements as outlined in the latest exposure draft, the
company expects that it will elect early adoption of the Statement of Position
in 1996, and will take a pretax charge of approximately $130-160 million
(after-tax, $80-100 million) in the fourth quarter. The company has been advised
that the final pronouncement will not materially differ from the earlier draft
version.
The pretax cash expenditures for monitoring and administration activities have
been approximately $4 million per year and are expected to continue on an annual
basis, plus inflation, for approximately 25-30 years as mandated by state and
federal regulations. The company's annual cash flow will not be impacted by the
adoption of the accounting pronouncement. The company indicated that the effect
of the charge on its debt to capital ratio (which as of June 30 was 37.0%) would
be approximately 3.2 percentage points but believes that its debt ratings and
borrowing costs should not be affected as its interest and cash flow coverages
remain the same.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) See Exhibit Index
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of l934,
the registrant has duly caused this Report to be signed on its behalf
by the undersigned hereunto duly authorized.
RAYONIER INC. (Registrant)
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BY KENNETH P. JANETTE
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Kenneth P. Janette
Vice President and
Corporate Controller
October 9, 1996
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EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION LOCATION
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99 Press Release issued Filed herewith
October 9, 1996
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