Consolidating Financial Statements (Notes)

6 Months Ended

Jun. 30, 2013

CONSOLIDATING FINANCIAL STATEMENTS [Abstract]

Consolidating Financial Statements [Text Block]

19. 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 August 2009 TRS issued $172.5 million of 4.50% Senior Exchangeable Notes due 2015. The notes are guaranteed by Rayonier Inc. as the Parent Guarantor and Rayonier Operating Company LLC (“ROC”) as the Subsidiary Guarantor. In connection with these exchangeable 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.

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME  AND COMPREHENSIVE INCOME For the Three Months Ended June 30, 2013
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	—		$	409,077		$	—		$	409,077
Costs and Expenses
Cost of sales	—			—			—			297,698			—			297,698
Selling and general expenses	—			2,680			—			14,249			—			16,929
Other operating expense (income), net	180			(74		)	—			846			(661		)	291
	180			2,606			—			312,793			(661		)	314,918
Equity in income of New Zealand joint venture	—			—			—			304			—			304
OPERATING (LOSS) INCOME BEFORE GAIN ON CONSOLIDATION OF NEW ZEALAND JOINT VENTURE	(180		)	(2,606		)	—			96,588			661			94,463
Gain related to consolidation of New Zealand joint venture	—			—			—			16,098			—			16,098
OPERATING (LOSS) INCOME	(180		)	(2,606		)	—			112,686			661			110,561
Interest (expense) income	(3,414		)	(266		)	(6,997		)	658			—			(10,019		)
Interest and miscellaneous income (expense), net	1,759			1,104			(797		)	532			—			2,598
Equity in income from subsidiaries	89,064			91,235			35,968			—			(216,267		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	87,229			89,467			28,174			113,876			(215,606		)	103,140
Income tax (expense) benefit	(65		)	(403		)	2,847			(17,691		)	63			(15,249		)
INCOME FROM CONTINUING OPERATIONS	87,164			89,064			31,021			96,185			(215,543		)	87,891
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income taxes	—			—			—			—			—			—
NET INCOME	87,164			89,064			31,021			96,185			(215,543		)	87,891
Net income attributable to noncontrolling interest	—			—			—			727			—			727
NET INCOME ATTRIBUTABLE TO RAYONIER INC	87,164			89,064			31,021			95,458			(215,543		)	87,164
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	(18,625		)	(28,201		)	(1,725		)	(18,625		)	38,975			(28,201		)
New Zealand joint venture cash flow hedges	878			222			(1,873		)	877			118			222
Amortization of pension and postretirement plans, net of income tax	3,717			3,717			2,819			6,831			(13,367		)	3,717
Total other comprehensive loss	(14,030		)	(24,262		)	(779		)	(10,917		)	25,726			(24,262		)
COMPREHENSIVE INCOME	73,134			64,802			30,242			85,268			(189,817		)	63,629
Comprehensive loss attributable to noncontrolling interest	—			—			—			(9,505		)	—			(9,505		)
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$	73,134		$	64,802		$	30,242		$	94,773		$	(189,817	)	$	73,134

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended June 30, 2012
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	—		$	348,096		$	—		$	348,096
Costs and Expenses
Cost of sales	—			—			—			243,571			—			243,571
Selling and general expenses	—			1,904			—			13,988			—			15,892
Other operating income, net	—			(109		)	—			(5,186		)	—			(5,295		)
	—			1,795			—			252,373			—			254,168
Equity in income of New Zealand joint venture	—			—			—			170			—			170
OPERATING (LOSS) INCOME	—			(1,795		)	—			95,893			—			94,098
Interest expense	(3,117		)	(212		)	(10,243		)	(2,484		)	—			(16,056		)
Interest and miscellaneous income (expense), net	1,544			1,659			(834		)	(2,285		)	—			84
Equity in income from subsidiaries	70,652			70,948			60,407			—			(202,007		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	69,079			70,600			49,330			91,124			(202,007		)	78,126
Income tax benefit (expense)	—			52			4,043			(16,130		)	—			(12,035		)
INCOME FROM CONTINUING OPERATIONS	69,079			70,652			53,373			74,994			(202,007		)	66,091
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income tax	—			—			—			2,988			—			2,988
NET INCOME	69,079			70,652			53,373			77,982			(202,007		)	69,079
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	(8,081		)	(8,081		)	478			(8,081		)	15,684			(8,081		)
New Zealand joint venture cash flow hedges	(1,998		)	(1,998		)	—			(1,998		)	3,996			(1,998		)
Amortization of pension and postretirement plans, net of income tax	3,401			3,401			2,579			2,579			(8,559		)	3,401
Total other comprehensive (loss) income	(6,678		)	(6,678		)	3,057			(7,500		)	11,121			(6,678		)
COMPREHENSIVE INCOME	$	62,401		$	63,974		$	56,430		$	70,482		$	(190,886	)	$	62,401

	CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Six Months Ended June 30, 2013
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	—		$	802,796		$	—		$	802,796
Costs and Expenses
Cost of sales	—			—			—			563,716			—			563,716
Selling and general expenses	—			5,081			—			27,947			—			33,028
Other operating (income) expense, net	(1,701		)	449			—			(1,299		)	(661		)	(3,212		)
	(1,701		)	5,530			—			590,364			(661		)	593,532
Equity in income of New Zealand joint venture	—			—			—			562			—			562
OPERATING (LOSS) INCOME BEFORE GAIN ON CONSOLIDATION OF NEW ZEALAND JOINT VENTURE	1,701			(5,530		)	—			212,994			661			209,826
Gain related to consolidation of New Zealand joint venture	—			—			—			16,098			—			16,098
OPERATING INCOME (LOSS)	1,701			(5,530		)	—			229,092			661			225,924
Interest expense	(6,689		)	(518		)	(13,615		)	3,086			—			(17,736		)
Interest and miscellaneous income (expense), net	4,178			1,633			(1,548		)	(1,607		)	—			2,656
Equity in income from subsidiaries	235,774			240,000			159,437			—			(635,211		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	234,964			235,585			144,274			230,571			(634,550		)	210,844
Income tax (expense) benefit	(65		)	189			5,537			(25,418		)	62			(19,695		)
INCOME FROM CONTINUING OPERATIONS	234,899			235,774			149,811			205,153			(634,488		)	191,149
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income tax	—			—			—			44,477			—			44,477
NET INCOME	234,899			235,774			149,811			249,630			(634,488		)	235,626
Net income attributable to noncontrolling interest	—			—			—			727			—			727
NET INCOME ATTRIBUTABLE TO RAYONIER INC	234,899			235,774			149,811			248,903			(634,488		)	234,899
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	(17,650		)	(27,226		)	(1,485		)	(17,650		)	36,785			(27,226		)
New Zealand joint venture cash flow hedges	1,431			775			(1,873		)	1,431			(989		)	775
Amortization of pension and postretirement plans, net of income tax	8,687			8,687			6,831			6,831			(22,349		)	8,687
Total other comprehensive (loss) income	(7,532		)	(17,764		)	3,473			(9,388		)	13,447			(17,764		)
COMPREHENSIVE INCOME	227,367			218,010			153,284			240,242			(621,041		)	217,862
Comprehensive loss attributable to noncontrolling interest	—			—			—			(9,505		)	—			(9,505		)
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$	227,367		$	218,010		$	153,284		$	249,747		$	(621,041	)	$	227,367

	CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Six Months Ended June 30, 2012
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non-Guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	—		$	684,667		$	—		$	684,667
Costs and Expenses
Cost of sales	—			—			—			479,279			—			479,279
Selling and general expenses	—			5,215			—			29,942			—			35,157
Other operating expense (income), net	—			12			—			(6,445		)	—			(6,433		)
	—			5,227			—			502,776			—			508,003
Equity in income of New Zealand joint venture	—			—			—			184			—			184
OPERATING (LOSS) INCOME	—			(5,227		)	—			182,075			—			176,848
Interest expense	(4,366		)	(450		)	(20,469		)	(2,595		)	—			(27,880		)
Interest and miscellaneous income (expense), net	3,455			2,986			(2,042		)	(4,339		)	—			60
Equity in income from subsidiaries	123,426			126,394			106,152			—			(355,972		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	122,515			123,703			83,641			175,141			(355,972		)	149,028
Income tax (expense) benefit	—			(277		)	8,217			(38,278		)	—			(30,338		)
INCOME FROM CONTINUING OPERATIONS	122,515			123,426			91,858			136,863			(355,972		)	118,690
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income taxes	—			—			—			3,825			—			3,825
NET INCOME	122,515			123,426			91,858			140,688			(355,972		)	122,515
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	(2,255		)	(2,255		)	376			(2,255		)	4,134			(2,255		)
New Zealand joint venture cash flow hedges	(793		)	(793		)	—			(793		)	1,586			(793		)
Amortization of pension and postretirement plans, net of income tax	6,541			6,541			4,959			4,959			(16,459		)	6,541
Total other comprehensive income	3,493			3,493			5,335			1,911			(10,739		)	3,493
COMPREHENSIVE INCOME	$	126,008		$	126,919		$	97,193		$	142,599		$	(366,711	)	$	126,008

	CONDENSED CONSOLIDATING BALANCE SHEETS As of June 30, 2013
	Rayonier Inc. (Parent Guarantor)		ROC (Subsidiary Guarantor)		Rayonier TRS Holdings Inc. (Issuer)		Non- guarantors		Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	170,442	$	6,449	$	26,790	$	139,900	$	—		$	343,581
Accounts receivable, less allowance for doubtful accounts	—		15		892		115,631		—			116,538
Inventory	—		—		—		99,091		—			99,091
Deferred tax assets	—		—		—		55,563		—			55,563
Prepaid and other current assets	—		2,136		639		64,669		—			67,444
Total current assets	170,442		8,600		28,321		474,854		—			682,217
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		—		2,080,611		—			2,080,611
NET PROPERTY, PLANT AND EQUIPMENT	—		2,217		—		850,215		—			852,432
INVESTMENT IN SUBSIDIARIES	1,575,156		1,696,714		1,037,668		—		(4,309,538		)	—
INTERCOMPANY NOTES RECEIVABLE	217,073		—		20,166		—		(237,239		)	—
OTHER ASSETS	3,928		30,171		4,513		174,179		—			212,791
TOTAL ASSETS	$	1,966,599	$	1,737,702	$	1,090,668	$	3,579,859	$	(4,546,777	)	$	3,828,051
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	1,129	$	505	$	131,621	$	—		$	133,255
Current maturities of long-term debt	75,000		—		—		463		—			75,463
Accrued taxes	—		2,603		—		17,555		—			20,158
Accrued payroll and benefits	—		10,689		—		9,800		—			20,489
Accrued interest	3,060		538		3,753		2,484		—			9,835
Accrued customer incentives	—		—		—		10,743		—			10,743
Other current liabilities	—		3,189		—		48,653		—			51,842
Current liabilities for dispositions and discontinued operations	—		—		—		8,686		—			8,686
Total current liabilities	78,060		18,148		4,258		230,005		—			330,471
LONG-TERM DEBT	325,000		—		979,511		287,323		—			1,591,834
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		—		69,442		—			69,442
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		130,244		—		28,350		—			158,594
OTHER NON-CURRENT LIABILITIES	—		13,989		—		13,601		—			27,590
INTERCOMPANY PAYABLE	—		165		—		265,823		(265,988		)	—
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,563,539		1,575,156		106,899		2,598,734		(4,280,789		)	1,563,539
Noncontrolling interest	—		—		—		86,581		—			86,581
TOTAL SHAREHOLDERS’ EQUITY	1,563,539		1,575,156		106,899		2,685,315		(4,280,789		)	1,650,120
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,966,599	$	1,737,702	$	1,090,668	$	3,579,859	$	(4,546,777	)	$	3,828,051

	CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2012
	Rayonier Inc. (Parent Guarantor)		ROC (Subsidiary Guarantor)		Rayonier TRS Holdings Inc. (Issuer)		Non- guarantors		Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	252,888	$	3,966	$	19,358	$	4,384	$	—		$	280,596
Accounts receivable, less allowance for doubtful accounts	—		386		—		99,973		—			100,359
Inventory	—		—		—		127,966		—			127,966
Deferred tax assets	—		—		—		15,845		—			15,845
Prepaid and other current assets	—		1,566		691		39,251		—			41,508
Total current assets	252,888		5,918		20,049		287,419		—			566,274
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		—		1,573,309		—			1,573,309
NET PROPERTY, PLANT AND EQUIPMENT	—		2,321		—		704,717		—			707,038
INVESTMENT IN JOINT VENTURE	—		—		—		72,419		—			72,419
INVESTMENT IN SUBSIDIARIES	1,445,205		1,677,782		1,452,027		—		(4,575,014		)	—
INTERCOMPANY NOTES RECEIVABLE	213,863		14,000		19,831		—		(247,694		)	—
OTHER ASSETS	4,148		27,779		5,182		166,802		—			203,911
TOTAL ASSETS	$	1,916,104	$	1,727,800	$	1,497,089	$	2,804,666	$	(4,822,708	)	$	3,122,951
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	2,099	$	33	$	68,249	$	—		$	70,381
Current maturities of long-term debt	150,000		—		—		—		—			150,000
Accrued taxes	—		485		—		13,339		—			13,824
Accrued payroll and benefits	—		15,044		—		13,024		—			28,068
Accrued interest	3,100		379		3,197		1,280		—			7,956
Accrued customer incentives	—		—		—		10,849		—			10,849
Other current liabilities	—		2,925		—		15,715		—			18,640
Current liabilities for dispositions and discontinued operations	—		—		—		8,105		—			8,105
Total current liabilities	153,100		20,932		3,230		130,561		—			307,823
LONG-TERM DEBT	325,000		—		718,321		76,731		—			1,120,052
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		—		73,590		—			73,590
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		129,156		—		30,426		—			159,582
OTHER NON-CURRENT LIABILITIES	—		16,432		—		7,468		—			23,900
INTERCOMPANY PAYABLE	—		116,075		—		137,797		(253,872		)	—
TOTAL SHAREHOLDERS’ EQUITY	1,438,004		1,445,205		775,538		2,348,093		(4,568,836		)	1,438,004
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,916,104	$	1,727,800	$	1,497,089	$	2,804,666	$	(4,822,708	)	$	3,122,951

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2013
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	248,552		$	247,599		$	64,000		$	212,977		$	(537,456	)	$	235,672
INVESTING ACTIVITIES
Capital expenditures	—			(89		)	—			(94,037		)	—			(94,126		)
Purchase of additional interest in New Zealand joint venture	—			—			—			(139,879		)	—			(139,879		)
Purchase of timberlands	—			—			—			(10,447		)	—			(10,447		)
Intercompany purchase of real estate	—			—			—			984			(984		)	—
Jesup mill cellulose specialties expansion	—			—			—			(100,185		)	—			(100,185		)
Proceeds from the disposition of Wood Products business	—			—			—			72,953			—			72,953
Change in restricted cash	—			—			—			7,603			—			7,603
Investment in Subsidiaries	(138,178		)	(138,178		)	(249,481		)	—			525,837			—
Other	—			1,700			—			18,376			—			20,076
CASH (USED FOR) INVESTING ACTIVITIES	(138,178		)	(136,567		)	(249,481		)	(244,632		)	524,853			(244,005		)
FINANCING ACTIVITIES
Issuance of debt	175,000			—			280,000			—			—			455,000
Repayment of debt	(250,000		)	—			(23,087		)	—			—			(273,087		)
Dividends paid	(113,222		)	—			—			—			—			(113,222		)
Proceeds from the issuance of common shares	6,643			—			—			—			—			6,643
Excess tax benefits on stock-based compensation	—			—			—			7,399			—			7,399
Repurchase of common shares	(11,241		)	—			—			—			—			(11,241		)
Intercompany distributions	—			(108,549		)	(64,000		)	159,946			12,603			—
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES	(192,820		)	(108,549		)	192,913			167,345			12,603			71,492
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			—			(174		)	—			(174		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(82,446		)	2,483			7,432			135,516			—			62,985
Balance, beginning of year	252,888			3,966			19,358			4,384			—			280,596
Balance, end of period	$	170,442		$	6,449		$	26,790		$	139,900		$	—		$	343,581

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2012
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	3,173		$	51,579		$	12,000		$	181,124		$	(39,000	)	$	208,876
INVESTING ACTIVITIES
Capital expenditures	—			(165		)	—			(76,081		)	—			(76,246		)
Purchase of timberlands	—			—			—			(8,687		)	—			(8,687		)
Jesup mill cellulose specialties expansion	—			—			—			(63,998		)	—			(63,998		)
Change in restricted cash	—			—			—			(14,427		)	—			(14,427		)
Investment in Subsidiaries	(5,181		)	—			(39,436		)	—			44,617			—
Other	—			(69		)	—			(635		)	—			(704		)
CASH USED FOR INVESTING ACTIVITIES	(5,181		)	(234		)	(39,436		)	(163,828		)	44,617			(164,062		)
FINANCING ACTIVITIES
Issuance of debt	325,000			—			15,000			15,000			—			355,000
Repayment of debt	(120,000		)	(30,000		)	(23,110		)	(15,000		)	—			(188,110		)
Dividends paid	(98,201		)	—			—			—			—			(98,201		)
Proceeds from the issuance of common shares	3,980			—			—			—			—			3,980
Excess tax benefits on stock-based compensation	—			—			—			4,234			—			4,234
Debt issuance costs	(3,653		)	—			—			—			—			(3,653		)
Repurchase of common shares	(7,783		)	—			—			—			—			(7,783		)
Intercompany distributions	—			5,181			(9,233		)	9,669			(5,617		)	—
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	99,343			(24,819		)	(17,343		)	13,903			(5,617		)	65,467
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			—			219			—			219
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	97,335			26,526			(44,779		)	31,418			—			110,500
Balance, beginning of year	—			8,977			59,976			9,650			—			78,603
Balance, end of period	$	97,335		$	35,503		$	15,197		$	41,068		$	—		$	189,103

In March 2012, Rayonier Inc. issued $325 million of 3.75% Senior Notes due 2022. The notes are fully and unconditionally guaranteed by ROC and Rayonier TRS Holdings Inc. In connection with these notes, the Company provides the following 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.

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended June 30, 2013
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	409,077		$	—		$	409,077
Costs and Expenses
Cost of sales	—			—			297,698			—			297,698
Selling and general expenses	—			2,680			14,249			—			16,929
Other operating expense (income), net	180			(74		)	846			(661		)	291
	180			2,606			312,793			(661		)	314,918
Equity in income of New Zealand joint venture	—			—			304			—			304
OPERATING (LOSS) INCOME BEFORE GAIN ON CONSOLIDATION OF NEW ZEALAND JOINT VENTURE	(180		)	(2,606		)	96,588			661			94,463
Gain on consolidation of New Zealand joint venture	—			—			16,098			—			16,098
OPERATING (LOSS) INCOME	(180		)	(2,606		)	112,686			661			110,561
Interest (expense) income	(3,414		)	(7,263		)	658			—			(10,019		)
Interest and miscellaneous income, net	1,759			307			532			—			2,598
Equity in income from subsidiaries	89,064			96,185			—			(185,249		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	87,229			86,623			113,876			(184,588		)	103,140
Income tax (expense) benefit	(65		)	2,441			(17,691		)	66			(15,249		)
INCOME FROM CONTINUING OPERATIONS	87,164			89,064			96,185			(184,522		)	87,891
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income taxes	—			—			—			—			—
NET INCOME	87,164			89,064			96,185			(184,522		)	87,891
Net income attributable to noncontrolling interest	—			—			727			—			727
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	87,164			89,064			95,458			(184,522		)	87,164
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	(18,625		)	(28,201		)	(18,625		)	37,250			(28,201		)
New Zealand joint venture cash flow hedges	878			221			877			(1,754		)	222
Amortization of pension and postretirement plans, net of income tax	3,717			3,718			6,831			(10,549		)	3,717
Total other comprehensive loss	(14,030		)	(24,262		)	(10,917		)	24,947			(24,262		)
COMPREHENSIVE INCOME	73,134			64,802			85,268			(159,575		)	63,629
Comprehensive loss attributable to noncontrolling interest	—			—			(9,505		)	—			(9,505		)
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$	73,134		$	64,802		$	94,773		$	(159,575	)	$	73,134

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended June 30, 2012
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	348,096		$	—		$	348,096
Costs and Expenses
Cost of sales	—			—			243,571			—			243,571
Selling and general expenses	—			1,904			13,988			—			15,892
Other operating income, net	—			(109		)	(5,186		)	—			(5,295		)
	—			1,795			252,373			—			254,168
Equity in income of New Zealand joint venture	—			—			170			—			170
OPERATING (EXPENSE) INCOME	—			(1,795		)	95,893			—			94,098
Interest expense	(3,117		)	(10,455		)	(2,484		)	—			(16,056		)
Interest and miscellaneous income (expense), net	1,544			825			(2,285		)	—			84
Equity in income from subsidiaries	70,652			77,982			—			(148,634		)	—
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	69,079			66,557			91,124			(148,634		)	78,126
Income tax benefit (expense)	—			4,095			(16,130		)	—			(12,035		)
INCOME (LOSS) FROM CONTINUING OPERATIONS	69,079			70,652			74,994			(148,634		)	66,091
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income taxes	—			—			2,988			—			2,988
NET INCOME (LOSS)	69,079			70,652			77,982			(148,634		)	69,079
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	(8,081		)	(8,080		)	(8,081		)	16,161			(8,081		)
New Zealand joint venture cash flow hedges	(1,998		)	(1,998		)	(1,998		)	3,996			(1,998		)
Gain from pension and postretirement plans, net of income tax	3,401			3,401			2,579			(5,980		)	3,401
Total other comprehensive loss	(6,678		)	(6,677		)	(7,500		)	14,177			(6,678		)
COMPREHENSIVE INCOME (LOSS)	$	62,401		$	63,975		$	70,482		$	(134,457	)	$	62,401

	CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Six Months Ended June 30, 2013
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	802,796		$	—		$	802,796
Costs and Expenses
Cost of sales	—			—			563,716			—			563,716
Selling and general expenses	—			5,081			27,947			—			33,028
Other operating (income) expense, net	(1,701		)	449			(1,299		)	(661		)	(3,212		)
	(1,701		)	5,530			590,364			(661		)	593,532
Equity in income of New Zealand joint venture	—			—			562			—			562
OPERATING INCOME BEFORE GAIN ON CONSOLIDATION OF NEW ZEALAND JOINT VENTURE	1,701			(5,530		)	212,994			661			209,826
Gain on consolidation of New Zealand joint venture	—			—			16,098			—			16,098
OPERATING INCOME (LOSS)	1,701			(5,530		)	229,092			661			225,924
Interest (expense) income	(6,689		)	(14,133		)	3,086			—			(17,736		)
Interest and miscellaneous income (expense), net	4,178			85			(1,607		)	—			2,656
Equity in income from subsidiaries	235,774			249,630			—			(485,404		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	234,964			230,052			230,571			(484,743		)	210,844
Income tax benefit (expense)	(65		)	5,722			(25,418		)	66			(19,695		)
INCOME FROM CONTINUING OPERATIONS	234,899			235,774			205,153			(484,677		)	191,149
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income taxes	—			—			44,477			—			44,477
NET INCOME	234,899			235,774			249,630			(484,677		)	235,626
Net income attributable to noncontrolling interest	—			—			727			—			727
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	234,899			235,774			248,903			(484,677		)	234,899
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	(17,650		)	(27,226		)	(17,650		)	35,300			(27,226		)
New Zealand joint venture cash flow hedges	1,431			775			1,431			(2,862		)	775
Gain from pension and postretirement plans, net of income tax	8,687			8,687			6,831			(15,518		)	8,687
Total other comprehensive income	(7,532		)	(17,764		)	(9,388		)	16,920			(17,764		)
COMPREHENSIVE INCOME	227,367			218,010			240,242			(467,757		)	217,862
Comprehensive loss attributable to noncontrolling interest	—			—			(9,505		)	—			(9,505		)
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$	227,367		$	218,010		$	249,747		$	(467,757	)	$	227,367

	CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Six Months Ended June 30, 2012
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			All Other Subsidiaries (Non- guarantors)			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	684,667		$	—		$	684,667
Costs and Expenses
Cost of sales	—			—			479,279			—			479,279
Selling and general expenses	—			5,215			29,942			—			35,157
Other operating expense (income), net	—			12			(6,445		)	—			(6,433		)
	—			5,227			502,776			—			508,003
Equity in income of New Zealand joint venture	—			—			184			—			184
OPERATING (LOSS) INCOME	—			(5,227		)	182,075			—			176,848
Interest expense	(4,366		)	(20,919		)	(2,595		)	—			(27,880		)
Interest and miscellaneous income (expense), net	3,455			944			(4,339		)	—			60
Equity in income from subsidiaries	123,426			140,688			—			(264,114		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	122,515			115,486			175,141			(264,114		)	149,028
Income tax benefit (expense)	—			7,940			(38,278		)	—			(30,338		)
INCOME FROM CONTINUING OPERATIONS	122,515			123,426			136,863			(264,114		)	118,690
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income tax	—			—			3,825			—			3,825
NET INCOME	122,515			123,426			140,688			(264,114		)	122,515
OTHER COMPREHENSIVE INCOME										—
Foreign currency translation adjustment	(2,255		)	(2,255		)	(2,255		)	4,510			(2,255		)
New Zealand joint venture cash flow hedges	(793		)	(793		)	(793		)	1,586			(793		)
Gain from pension and postretirement plans, net of income tax	6,541			6,541			4,959			(11,500		)	6,541
Total other comprehensive income	3,493			3,493			1,911			(5,404		)	3,493
COMPREHENSIVE INCOME	$	126,008		$	126,919		$	142,599		$	(269,518	)	$	126,008

	CONDENSED CONSOLIDATING BALANCE SHEETS As of June 30, 2013
	Rayonier Inc. (Parent Issuer)		Subsidiary Guarantors		Non- guarantors		Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	170,442	$	33,239	$	139,900	$	—		$	343,581
Accounts receivable, less allowance for doubtful accounts	—		907		115,631		—			116,538
Inventory	—		—		99,091		—			99,091
Deferred tax asset	—		—		55,563		—			55,563
Prepaid and other current assets	—		2,775		64,669		—			67,444
Total current assets	170,442		36,921		474,854		—			682,217
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		2,080,611		—			2,080,611
NET PROPERTY, PLANT AND EQUIPMENT	—		2,217		850,215		—			852,432
INVESTMENT IN JOINT VENTURE	—		—		—		—			—
INVESTMENT IN SUBSIDIARIES	1,575,156		2,627,483		—		(4,202,639		)	—
INTERCOMPANY NOTES RECEIVABLE	217,073		20,166		—		(237,239		)	—
OTHER ASSETS	3,928		34,684		174,179		—			212,791
TOTAL ASSETS	$	1,966,599	$	2,721,471	$	3,579,859	$	(4,439,878	)	$	3,828,051
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	1,634	$	131,621	$	—		$	133,255
Current maturities of long-term debt	75,000		—		463		—			75,463
Accrued taxes	—		2,603		17,555		—			20,158
Accrued payroll and benefits	—		10,689		9,800		—			20,489
Accrued interest	3,060		4,291		2,484		—			9,835
Accrued customer incentives	—		—		10,743		—			10,743
Other current liabilities	—		3,189		48,653		—			51,842
Current liabilities for dispositions and discontinued operations	—		—		8,686		—			8,686
Total current liabilities	78,060		22,406		230,005		—			330,471
LONG-TERM DEBT	325,000		979,511		287,323		—			1,591,834
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		69,442		—			69,442
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		130,244		28,350		—			158,594
OTHER NON-CURRENT LIABILITIES	—		13,989		13,601		—			27,590
INTERCOMPANY PAYABLE	—		165		265,823		(265,988		)	—
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,563,539		1,575,156		2,598,734		(4,173,890		)	1,563,539
Noncontrolling interest	—		—		86,581		—			86,581
TOTAL SHAREHOLDERS’ EQUITY	1,563,539		1,575,156		2,685,315		(4,173,890		)	1,650,120
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,966,599	$	2,721,471	$	3,579,859	$	(4,439,878	)	$	3,828,051

	CONDENSED CONSOLIDATING BALANCE SHEETS As of December 31, 2012
	Rayonier Inc. (Parent Issuer)		Subsidiary Guarantors		Non- guarantors		Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	252,888	$	23,324	$	4,384	$	—		$	280,596
Accounts receivable, less allowance for doubtful accounts	—		386		99,973		—			100,359
Inventory	—		—		127,966		—			127,966
Deferred tax assets	—		—		15,845		—			15,845
Prepaid and other current assets	—		2,257		39,251		—			41,508
Total current assets	252,888		25,967		287,419		—			566,274
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		1,573,309		—			1,573,309
NET PROPERTY, PLANT AND EQUIPMENT	—		2,321		704,717		—			707,038
INVESTMENT IN JOINT VENTURE	—		—		72,419		—			72,419
INVESTMENT IN SUBSIDIARIES	1,445,205		2,354,270		—		(3,799,475		)	—
INTERCOMPANY NOTES RECEIVABLE	213,863		33,831		—		(247,694		)	—
OTHER ASSETS	4,148		32,961		166,802		—			203,911
TOTAL ASSETS	$	1,916,104	$	2,449,350	$	2,804,666	$	(4,047,169	)	$	3,122,951
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	2,132	$	68,249	$	—		$	70,381
Current maturities of long-term debt	150,000		—		—		—			150,000
Accrued taxes	—		485		13,339		—			13,824
Accrued payroll and benefits	—		15,044		13,024		—			28,068
Accrued interest	3,100		3,576		1,280		—			7,956
Accrued customer incentives	—		—		10,849		—			10,849
Other current liabilities	—		2,925		15,715		—			18,640
Current liabilities for dispositions and discontinued operations	—		—		8,105		—			8,105
Total current liabilities	153,100		24,162		130,561		—			307,823
LONG-TERM DEBT	325,000		718,321		76,731		—			1,120,052
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		73,590		—			73,590
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		129,156		30,426		—			159,582
OTHER NON-CURRENT LIABILITIES	—		16,432		7,468		—			23,900
INTERCOMPANY PAYABLE	—		116,074		137,797		(253,871		)	—
TOTAL SHAREHOLDERS’ EQUITY	1,438,004		1,445,205		2,348,093		(3,793,298		)	1,438,004
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,916,104	$	2,449,350	$	2,804,666	$	(4,047,169	)	$	3,122,951

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2013
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	248,552		$	247,599		$	212,977		$	(473,456	)	$	235,672
INVESTING ACTIVITIES
Capital expenditures	—			(89		)	(94,037		)	—			(94,126		)
Purchase of additional interest in New Zealand joint venture	—			—			(139,879		)	—			(139,879		)
Purchase of timberlands	—			—			(10,447		)	—			(10,447		)
Intercompany purchase of real estate	—			—			984			(984		)	—
Jesup mill cellulose specialties expansion	—			—			(100,185		)	—			(100,185		)
Proceeds from the disposition of Wood Products business	—			—			72,953			—			72,953
Change in restricted cash	—			—			7,603			—			7,603
Investment in Subsidiaries	(138,178		)	(387,659		)	—			525,837			—
Other	—			1,700			18,376			—			20,076
CASH (USED FOR) INVESTING ACTIVITIES	(138,178		)	(386,048		)	(244,632		)	524,853			(244,005		)
FINANCING ACTIVITIES
Issuance of debt	175,000			280,000			—			—			455,000
Repayment of debt	(250,000		)	(23,087		)	—			—			(273,087		)
Dividends paid	(113,222		)	—			—			—			(113,222		)
Proceeds from the issuance of common shares	6,643			—			—			—			6,643
Excess tax benefits on stock-based compensation	—			—			7,399			—			7,399
Debt issuance costs	—			—			—			—			—
Repurchase of common shares	(11,241		)	—			—			—			(11,241		)
Issuance of intercompany notes	—			—			—			—			—
Intercompany distributions	—			(108,549		)	159,946			(51,397		)	—
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES	(192,820		)	148,364			167,345			(51,397		)	71,492
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			(174		)	—			(174		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(82,446		)	9,915			135,516			—			62,985
Balance, beginning of year	252,888			23,324			4,384			—			280,596
Balance, end of period	$	170,442		$	33,239		$	139,900		$	—		$	343,581

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Six Months Ended June 30, 2012
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	3,173		$	54,346		$	181,124		$	(29,767	)	$	208,876
INVESTING ACTIVITIES
Capital expenditures	—			(165		)	(76,081		)	—			(76,246		)
Purchase of timberlands	—			—			(8,687		)	—			(8,687		)
Jesup mill cellulose specialties expansion	—			—			(63,998		)	—			(63,998		)
Change in restricted cash	—			—			(14,427		)	—			(14,427		)
Investment in Subsidiaries	(5,181		)	(39,436		)	—			44,617			—
Other	—			(69		)	(635		)	—			(704		)
CASH (USED FOR) INVESTING ACTIVITIES	(5,181		)	(39,670		)	(163,828		)	44,617			(164,062		)
FINANCING ACTIVITIES
Issuance of debt	325,000			15,000			15,000			—			355,000
Repayment of debt	(120,000		)	(53,110		)	(15,000		)	—			(188,110		)
Dividends paid	(98,201		)	—			—			—			(98,201		)
Proceeds from the issuance of common shares	3,980			—			—			—			3,980
Excess tax benefits on stock-based compensation	—			—			4,234			—			4,234
Debt issuance costs	(3,653		)	—			—			—			(3,653		)
Repurchase of common shares	(7,783		)	—			—			—			(7,783		)
Intercompany distributions	—			5,181			9,669			(14,850		)	—
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	99,343			(32,929		)	13,903			(14,850		)	65,467
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			219			—			219
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	97,335			(18,253		)	31,418			—			110,500
Balance, beginning of year	—			68,953			9,650			—			78,603
Balance, end of period	$	97,335		$	50,700		$	41,068		$	—		$	189,103