XML 72 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
Earnings Per Common Share (Notes)
 3 Months Ended
Mar. 31, 2013
Earnings Per Share [Abstract]  
Earnings Per Common Share [Text Block]
3.
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,
 
2013
 
2012
Income from continuing operations
$
103,258

 
$
52,599

Income from discontinued operations
44,477

 
838

Net income
$
147,735

 
$
53,437

Shares used for determining basic earnings per common share
124,479,865

 
122,352,435

Dilutive effect of:
 
 
 
Stock options
533,031

 
719,166

Performance and restricted shares
448,440

 
651,729

Assumed conversion of Senior Exchangeable Notes (a)
2,115,959

 
2,967,187

Assumed conversion of warrants (a) (b)
2,859,593

 
1,241,612

Shares used for determining diluted earnings per common share
130,436,888

 
127,932,129

Basic earnings per common share:
 
 
 
Continuing operations
$
0.83

 
$
0.43

Discontinued operations
0.36

 
0.01

Net income
$
1.19

 
$
0.44

Diluted earnings per common share:
 
 
 
Continuing operations
$
0.79

 
$
0.41

Discontinued operations
0.34

 
0.01

Net income
$
1.13

 
$
0.42


 
Three Months Ended March 31,
 
2013
 
2012
Anti-dilutive shares excluded from the computations of diluted earnings per share:
 
 
 
Stock options, performance and restricted shares
220,701

 
445,859

Assumed conversion of exchangeable note hedges (a)
2,115,959

 
2,967,187

Total
2,336,660

 
3,413,046

(a) The Senior Exchangeable Notes due 2012 (the "2012 Notes") matured in October 2012; however, no additional shares were issued due to offsetting exchangeable note hedges. Similarly, Rayonier will not issue additional shares upon maturity of the Senior Exchangeable Notes due 2015 (the "2015 Notes") due to offsetting hedges. Accounting Standards Codification 260, Earnings Per Share requires the assumed conversion of the Notes to be included in dilutive shares if the average stock price for the period exceeds the strike prices, while the assumed conversion of the hedges is excluded since they are anti-dilutive. As such, the dilutive effect of the assumed conversion of the 2012 Notes was only included for the three months ended March 31, 2012, while the effect of the 2015 Notes was included for both periods presented.
The warrants sold in conjunction with the Notes due 2012 began maturing on January 15, 2013 and matured ratably through March 27, 2013. As a result, 2,036,976 shares were issued through the end of the first quarter and 97,918 shares issued in the first week of April. The dilutive impact of these warrants was calculated based on the amount of time they were outstanding before settlement during the first quarter. Rayonier will distribute additional shares upon maturity of the warrants for the Notes due 2015 if the stock price exceeds $39.43 per share. For additional information on the potential dilutive impact of the Senior Exchangeable Notes, warrants and exchangeable note hedges, see Note 11 — Debt in the 2012 Annual Report on Form 10-K and Note 14 — Debt of this Form 10-Q.
(b) The higher shares used for the assumed conversion of the warrants were primarily due to an increase in the average stock price from $45.07 in first quarter 2012 to $55.47 in first quarter 2013.