SEGMENT AND GEOGRAPHICAL INFORMATION

9 Months Ended

Sep. 30, 2013

Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]

SEGMENT AND GEOGRAPHICAL INFORMATION

SEGMENT AND GEOGRAPHICAL INFORMATION

Rayonier operates in three reportable business segments: Forest Resources, Real Estate and Performance Fibers. Prior to the first quarter of 2013, the Company operated in four reportable business segments, which included Wood Products. In March 2013, the Company sold its Wood Products business and its operations are shown as discontinued operations for all periods presented. See Note 2 — Sale of Wood Products Business for additional information. On April 4, 2013, Rayonier acquired an additional 39 percent interest in the New Zealand JV, bringing its total ownership to 65 percent. As a result, 100 percent of the New Zealand JV’s results of operations have been consolidated and included within the Forest Resources segment since April 4, when the Company acquired control of the entity. Accordingly, the New Zealand JV’s assets and liabilities are fully consolidated at September 30, 2013. See Note 6 — Joint Venture Investment for further information regarding the Company’s joint venture.

Forest Resources sales include all activities related to the harvesting of timber. Real Estate sales include all property sales, including those designated for higher and better use (“HBU”). The assets of the Real Estate segment include HBU property held by the Company’s real estate subsidiary, TerraPointe LLC.

The Performance Fibers segment included two major product lines, cellulose specialties and absorbent materials. Beginning in the third quarter of 2013 and in conjunction with the completion of the cellulose specialties expansion (“CSE”) project, the Company’s Jesup mill discontinued producing absorbent material and began producing commodity viscose during the multi-year transition to higher cellulose specialties volume. Commodity viscose is a dissolving wood pulp used primarily in the manufacture of textiles. Commodity Viscose/Other includes commodity viscose and off-grade.

The Company’s remaining operations include harvesting and selling timber acquired from third parties (log trading). These operations are reported in “Other Operations.” 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 the operating income of the segments.

Operating income (loss) as presented in the Consolidated Statements of Income and Comprehensive Income is equal to segment income (loss). Certain income (loss) items in the Consolidated Statements of Income and Comprehensive Income are not allocated to segments. These items, which include gains (losses) from certain asset dispositions, interest income (expense), miscellaneous income (expense) and income tax (expense) benefit, are not considered by management to be part of segment operations.

Total assets, sales, operating income (loss) and depreciation, depletion and amortization by segment including Corporate were as follows:

	September 30,		December 31,
ASSETS	2013		2012
Forest Resources	$	2,216,727	$	1,690,030
Real Estate	88,002		112,647
Performance Fibers	1,122,779		902,309
Wood Products (a)	—		18,454
Other Operations	29,056		23,296
Corporate and other	361,556		376,215
Total	$	3,818,120	$	3,122,951

(a) The Company sold its Wood Products segment during the first quarter of 2013. See Note 2 — Sale of Wood Products Business for additional information.

	Three Months Ended September 30,						Nine Months Ended September 30,
SALES	2013			2012			2013			2012
Forest Resources	$	111,260		$	59,853		$	277,422		$	164,711
Real Estate	14,088			13,043			51,761			37,369
Performance Fibers	224,243			288,221			761,456			793,586
Other Operations	35,295			26,293			97,394			76,702
Intersegment Eliminations	(102		)	(1,247		)	(453		)	(1,538		)
Total	$	384,784		$	386,163		$	1,187,580		$	1,070,830

	Three Months Ended September 30,						Nine Months Ended September 30,
OPERATING INCOME(LOSS)	2013			2012			2013			2012
Forest Resources	$	23,172		$	11,184		$	57,317		$	27,438
Real Estate	7,521			8,420			30,468			20,897
Performance Fibers	62,663			101,455			233,415			265,812
Other Operations	(301		)	(419		)	1,643			(201		)
Corporate and other (c)	(9,406		)	(9,394		)	(13,270		)	(25,852		)
Total	$	83,649		$	111,246		$	309,573		$	288,094

(c) The nine months ended September 30, 2013 includes a $16.1 million gain related to the consolidation of the New Zealand JV. See Note 6 — Joint Venture Investment.

	Three Months Ended September 30,				Nine Months Ended September 30,
DEPRECIATION, DEPLETION AND AMORTIZATION	2013		2012		2013		2012
Forest Resources	$	28,475	$	18,793	$	72,210	$	52,662
Real Estate	2,074		1,288		8,720		4,733
Performance Fibers	22,340		15,077		51,142		41,577
Corporate and other	262		368		738		1,158
Total	$	53,151	$	35,526	$	132,810	$	100,130