CONSOLIDATING FINANCIAL STATEMENTS (Tables)

9 Months Ended

Sep. 30, 2013

Senior Exchangeable Notes due 2015 [Member]

Condensed Financial Statements, Captions [Line Items]

Schedule of Condensed Consolidating Statement of Income and Comprehensive Income

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME  AND COMPREHENSIVE INCOME For the Three Months Ended September 30, 2013
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	—		$	384,784		$	—		$	384,784
Costs and Expenses
Cost of sales	—			—			—			287,150			—			287,150
Selling and general expenses	—			2,276			—			13,050			—			15,326
Other operating expense (income), net	—			738			—			(2,740		)	661			(1,341		)
	—			3,014			—			297,460			661			301,135
OPERATING (LOSS) INCOME	—			(3,014		)	—			87,324			(661		)	83,649
Interest expense	(3,190		)	(162		)	(7,115		)	(2,564		)	—			(13,031		)
Interest and miscellaneous income (expense), net	2,538			770			(4,325		)	271			—			(746		)
Equity in income from subsidiaries	57,932			58,802			39,544			—			(156,278		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	57,280			56,396			28,104			85,031			(156,939		)	69,872
Income tax benefit (expense)	65			1,536			3,627			(16,671		)	(62		)	(11,505		)
NET INCOME	57,345			57,932			31,731			68,360			(157,001		)	58,367
Less: Net income attributable to noncontrolling interest	—			—			—			1,022			—			1,022
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	57,345			57,932			31,731			67,338			(157,001		)	57,345
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	17,887			17,887			2,084			24,259			(37,858		)	24,259
New Zealand joint venture cash flow hedges	2,233			2,231			2,231			3,434			(6,696		)	3,433
Amortization of pension and postretirement plans, net of income tax	3,639			3,639			2,747			2,747			(9,133		)	3,639
Total other comprehensive loss	23,759			23,757			7,062			30,440			(53,687		)	31,331
COMPREHENSIVE INCOME	81,104			81,689			38,793			98,800			(210,688		)	89,698
Less: Comprehensive income attributable to noncontrolling interest	—			—			—			8,594			—			8,594
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$	81,104		$	81,689		$	38,793		$	90,206		$	(210,688	)	$	81,104

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended September 30, 2012
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	—		$	386,163		$	—		$	386,163
Costs and Expenses
Cost of sales	—			—			—			259,201			—			259,201
Selling and general expenses	—			2,762			—			12,714			—			15,476
Other operating expense (income), net	—			730			—			(424		)	—			306
	—			3,492			—			271,491			—			274,983
Equity in income of New Zealand joint venture	—			—			—			66			—			66
OPERATING (LOSS) INCOME	—			(3,492		)	—			114,738			—			111,246
Interest (expense) income	(3,136		)	(196		)	(10,244		)	5,323			—			(8,253		)
Interest and miscellaneous income (expense), net	1,630			1,594			(980		)	(2,010		)	—			234
Equity in income from subsidiaries	82,066			85,241			73,635			—			(240,942		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	80,560			83,147			62,411			118,051			(240,942		)	103,227
Income tax (expense) benefit	—			(1,081		)	4,096			(26,964		)	—			(23,949		)
INCOME FROM CONTINUING OPERATIONS	80,560			82,066			66,507			91,087			(240,942		)	79,278
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income tax	—			—			—			1,282			—			1,282
NET INCOME	80,560			82,066			66,507			92,369			(240,942		)	80,560
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	5,373			5,373			107			4,887			(10,367		)	5,373
New Zealand joint venture cash flow hedges	878			878			—			879			(1,757		)	878
Amortization of pension and postretirement plans, net of income tax	3,401			3,401			2,578			(4,959		)	(1,020		)	3,401
Total other comprehensive income	9,652			9,652			2,685			807			(13,144		)	9,652
COMPREHENSIVE INCOME	$	90,212		$	91,718		$	69,192		$	93,176		$	(254,086	)	$	90,212

	CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2013
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	—		$	1,187,580		$	—		$	1,187,580
Costs and Expenses
Cost of sales	—			—			—			850,866			—			850,866
Selling and general expenses	—			7,357			—			40,997			—			48,354
Other operating (income) expense, net	(1,701		)	1,187			—			(4,039		)	—			(4,553		)
	(1,701		)	8,544			—			887,824			—			894,667
Equity in income of New Zealand joint venture	—			—			—			562			—			562
OPERATING INCOME (LOSS) BEFORE GAIN ON CONSOLIDATION OF NEW ZEALAND JOINT VENTURE	1,701			(8,544		)	—			300,318			—			293,475
Gain related to consolidation of New Zealand joint venture	—			—			—			16,098			—			16,098
OPERATING INCOME (LOSS)	1,701			(8,544		)	—			316,416			—			309,573
Interest (expense) income	(9,879		)	(680		)	(20,730		)	521			—			(30,768		)
Interest and miscellaneous income (expense), net	6,716			2,403			(5,873		)	(1,335		)	—			1,911
Equity in income from subsidiaries	293,706			298,802			198,981			—			(791,489		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	292,244			291,981			172,378			315,602			(791,489		)	280,716
Income tax benefit (expense)	—			1,725			9,164			(42,089		)	—			(31,200		)
INCOME FROM CONTINUING OPERATIONS	292,244			293,706			181,542			273,513			(791,489		)	249,516
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income tax	—			—			—			44,477			—			44,477
NET INCOME	292,244			293,706			181,542			317,990			(791,489		)	293,993
Less: Net income attributable to noncontrolling interest	—			—			—			1,749			—			1,749
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	292,244			293,706			181,542			316,241			(791,489		)	292,244
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	237			237			629			(2,967		)	(1,103		)	(2,967		)
New Zealand joint venture cash flow hedges	3,663			3,663			1,014			4,209			(8,340		)	4,209
Amortization of pension and postretirement plans, net of income tax	12,326			12,326			9,578			9,578			(31,482		)	12,326
Total other comprehensive income	16,226			16,226			11,221			10,820			(40,925		)	13,568
COMPREHENSIVE INCOME	308,470			309,932			192,763			328,810			(832,414		)	307,561
Less: Comprehensive loss attributable to noncontrolling interest	—			—			—			(909		)	—			(909		)
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$	308,470		$	309,932		$	192,763		$	329,719		$	(832,414	)	$	308,470

	CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2012
	Rayonier Inc. (Parent Guarantor)			ROC (Subsidiary Guarantor)			Rayonier TRS Holdings Inc. (Issuer)			Non-Guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	—		$	1,070,830		$	—		$	1,070,830
Costs and Expenses
Cost of sales	—			—			—			738,480			—			738,480
Selling and general expenses	—			7,977			—			42,656			—			50,633
Other operating expense (income), net	—			742			—			(6,870		)	—			(6,128		)
	—			8,719			—			774,266			—			782,985
Equity in income of New Zealand joint venture	—			—			—			249			—			249
OPERATING (LOSS) INCOME	—			(8,719		)	—			296,813			—			288,094
Interest (expense) income	(7,502		)	(646		)	(30,713		)	2,728			—			(36,133		)
Interest and miscellaneous income (expense), net	5,086			4,580			(3,022		)	(6,350		)	—			294
Equity in income from subsidiaries	205,492			211,635			179,787			—			(596,914		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	203,076			206,850			146,052			293,191			(596,914		)	252,255
Income tax (expense) benefit	—			(1,358		)	12,313			(65,242		)	—			(54,287		)
INCOME FROM CONTINUING OPERATIONS	203,076			205,492			158,365			227,949			(596,914		)	197,968
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income taxes	—			—			—			5,108			—			5,108
NET INCOME	203,076			205,492			158,365			233,057			(596,914		)	203,076
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	3,115			3,115			483			2,633			(6,231		)	3,115
New Zealand joint venture cash flow hedges	86			86			—			86			(172		)	86
Amortization of pension and postretirement plans, net of income tax	9,943			9,943			7,537			—			(17,480		)	9,943
Total other comprehensive income	13,144			13,144			8,020			2,719			(23,883		)	13,144
COMPREHENSIVE INCOME	$	216,220		$	218,636		$	166,385		$	235,776		$	(620,797	)	$	216,220

Schedule of Condensed Consolidating Balance Sheets

	CONDENSED CONSOLIDATING BALANCE SHEETS As of September 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	$	172,938	$	4,933	$	20,995	$	61,872	$	—		$	260,738
Accounts receivable, less allowance for doubtful accounts	—		22		1,596		122,742		—			124,360
Inventory	—		—		—		133,985		—			133,985
Deferred tax assets	—		—		—		62,914		—			62,914
Prepaid and other current assets	—		4,604		654		53,926		—			59,184
Total current assets	172,938		9,559		23,245		435,439		—			641,181
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		—		2,103,503		—			2,103,503
NET PROPERTY, PLANT AND EQUIPMENT	—		2,399		—		866,033		—			868,432
INVESTMENT IN SUBSIDIARIES	1,520,817		1,749,463		1,316,652		—		(4,586,932		)	—
INTERCOMPANY NOTES RECEIVABLE	223,022		—		20,400		—		(243,422		)	—
OTHER ASSETS	3,808		31,732		3,938		165,526		—			205,004
TOTAL ASSETS	$	1,920,585	$	1,793,153	$	1,364,235	$	3,570,501	$	(4,830,354	)	$	3,818,120
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	884	$	854	$	97,232	$	—		$	98,970
Current maturities of long-term debt	—		—		10,000		—		—			10,000
Accrued taxes	—		3,529		—		16,617		—			20,146
Accrued payroll and benefits	—		12,969		—		13,515		—			26,484
Accrued interest	6,132		578		3,930		3,214		—			13,854
Accrued customer incentives	—		—		—		10,771		—			10,771
Other current liabilities	—		9,358		—		41,833		—			51,191
Current liabilities for dispositions and discontinued operations	—		—		—		8,446		—			8,446
Total current liabilities	6,132		27,318		14,784		191,628		—			239,862
LONG-TERM DEBT	325,000		—		1,029,770		291,567		—			1,646,337
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		—		67,125		—			67,125
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		131,037		—		27,626		—			158,663
OTHER NON-CURRENT LIABILITIES	—		8,818		—		12,436		—			21,254
INTERCOMPANY PAYABLE	—		105,163		—		102,854		(208,017		)	—
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,589,453		1,520,817		319,681		2,781,839		(4,622,337		)	1,589,453
Noncontrolling interest	—		—		—		95,426		—			95,426
TOTAL SHAREHOLDERS’ EQUITY	1,589,453		1,520,817		319,681		2,877,265		(4,622,337		)	1,684,879
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,920,585	$	1,793,153	$	1,364,235	$	3,570,501	$	(4,830,354	)	$	3,818,120

	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

Schedule of Condensed Consolidating Statements of Cash Flows

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Nine Months Ended September 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	$	389,405		$	394,700		$	84,000		$	291,478		$	(825,347	)	$	334,236
INVESTING ACTIVITIES
Capital expenditures	—			(335		)	—			(122,147		)	—			(122,482		)
Purchase of additional interest in New Zealand joint venture	—			—			—			(139,879		)	—			(139,879		)
Purchase of timberlands	—			—			—			(11,650		)	—			(11,650		)
Jesup mill cellulose specialties expansion	—			—			—			(137,392		)	—			(137,392		)
Proceeds from the disposition of Wood Products business	—			—			—			68,063			—			68,063
Change in restricted cash	—			—			—			3,989			—			3,989
Investment in Subsidiaries	(138,178		)	(138,178		)	(316,836		)	—			593,192			—
Other	—			1,701			—			(1,542		)	—			159
CASH USED FOR INVESTING ACTIVITIES	(138,178		)	(136,812		)	(316,836		)	(340,558		)	593,192			(339,192		)
FINANCING ACTIVITIES
Issuance of debt	175,000			—			375,000			57,885			—			607,885
Repayment of debt	(325,000		)	—			(56,527		)	(71,936		)	—			(453,463		)
Dividends paid	(175,079		)	—			—			—			—			(175,079		)
Proceeds from the issuance of common shares	9,205			—			—			—			—			9,205
Excess tax benefits on stock-based compensation	—			—			—			8,189			—			8,189
Repurchase of common shares	(11,303		)	—			—			—			—			(11,303		)
Issuance of intercompany notes	(4,000		)	—			—			4,000			—			—
Intercompany distributions	—			(256,921		)	(84,000		)	108,766			232,155			—
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES	(331,177		)	(256,921		)	234,473			106,904			232,155			(14,566		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			—			(336		)	—			(336		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(79,950		)	967			1,637			57,488			—			(19,858		)
Balance, beginning of year	252,888			3,966			19,358			4,384			—			280,596
Balance, end of period	$	172,938		$	4,933		$	20,995		$	61,872		$	—		$	260,738

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Nine Months Ended September 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	$	23,916		$	105,407		$	12,000		$	317,407		$	(105,088	)	$	353,642
INVESTING ACTIVITIES
Capital expenditures	—			(240		)	—			(111,775		)	—			(112,015		)
Purchase of timberlands	—			—			—			(11,632		)	—			(11,632		)
Jesup mill cellulose specialties expansion	—			—			—			(104,782		)	—			(104,782		)
Change in restricted cash	—			—			—			(12,796		)	—			(12,796		)
Investment in Subsidiaries	—			—			(5,536		)	—			5,536			—
Other	—			(69		)	—			4,350			—			4,281
CASH USED FOR INVESTING ACTIVITIES	—			(309		)	(5,536		)	(236,635		)	5,536			(236,944		)
FINANCING ACTIVITIES
Issuance of debt	325,000			—			15,000			15,000			—			355,000
Repayment of debt	(120,000		)	(30,000		)	(23,153		)	(25,500		)	—			(198,653		)
Dividends paid	(152,358		)	—			—			—			—			(152,358		)
Proceeds from the issuance of common shares	20,732			—			—			—			—			20,732
Excess tax benefits on stock-based compensation	—			—			—			7,057			—			7,057
Debt issuance costs	(3,698		)	—			—			—			—			(3,698		)
Repurchase of common shares	(7,783		)	—			—			—			—			(7,783		)
Issuance of intercompany notes	(9,000		)	—			—			9,000			—			—
Intercompany distributions	—			(24,529		)	(12,000		)	(63,023		)	99,552			—
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	52,893			(54,529		)	(20,153		)	(57,466		)	99,552			20,297
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			—			(123		)	—			(123		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	76,809			50,569			(13,689		)	23,183			—			136,872
Balance, beginning of year	—			8,977			59,976			9,650			—			78,603
Balance, end of period	$	76,809		$	59,546		$	46,287		$	32,833		$	—		$	215,475

Senior Notes due 2022 at a fixed interest rate of 3.75% [Member]

Condensed Financial Statements, Captions [Line Items]

Schedule of Condensed Consolidating Statement of Income and Comprehensive Income

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended September 30, 2013
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	384,784		$	—		$	384,784
Costs and Expenses
Cost of sales	—			—			287,150			—			287,150
Selling and general expenses	—			2,276			13,050			—			15,326
Other operating expense (income), net	—			738			(2,740		)	661			(1,341		)
	—			3,014			297,460			661			301,135
OPERATING (LOSS) INCOME	—			(3,014		)	87,324			(661		)	83,649
Interest expense	(3,190		)	(7,277		)	(2,564		)	—			(13,031		)
Interest and miscellaneous income (expense), net	2,538			(3,555		)	271			—			(746		)
Equity in income from subsidiaries	57,932			66,610			—			(124,542		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	57,280			52,764			85,031			(125,203		)	69,872
Income tax benefit (expense)	65			5,168			(16,671		)	(67		)	(11,505		)
NET INCOME	57,345			57,932			68,360			(125,270		)	58,367
Less: Net income attributable to noncontrolling interest	—			—			1,022			—			1,022
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	57,345			57,932			67,338			(125,270		)	57,345
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	17,887			17,887			24,259			(35,774		)	24,259
New Zealand joint venture cash flow hedges	2,233			2,231			3,434			(4,465		)	3,433
Amortization of pension and postretirement plans, net of income tax	3,639			3,639			2,747			(6,386		)	3,639
Total other comprehensive income	23,759			23,757			30,440			(46,625		)	31,331
COMPREHENSIVE INCOME	81,104			81,689			98,800			(171,895		)	89,698
Less: Comprehensive income attributable to noncontrolling interest	—			—			8,594			—			8,594
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$	81,104		$	81,689		$	90,206		$	(171,895	)	$	81,104

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Three Months Ended September 30, 2012
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	386,163		$	—		$	386,163
Costs and Expenses
Cost of sales	—			—			259,201			—			259,201
Selling and general expenses	—			2,762			12,714			—			15,476
Other operating income (expense), net	—			730			(424		)	—			306
	—			3,492			271,491			—			274,983
Equity in income of New Zealand joint venture	—			—			66			—			66
OPERATING (LOSS) INCOME	—			(3,492		)	114,738			—			111,246
Interest (expense) income	(3,136		)	(10,440		)	5,323			—			(8,253		)
Interest and miscellaneous income (expense), net	1,630			614			(2,010		)	—			234
Equity in income from subsidiaries	82,066			92,369			—			(174,435		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	80,560			79,051			118,051			(174,435		)	103,227
Income tax benefit (expense)	—			3,015			(26,964		)	—			(23,949		)
INCOME FROM CONTINUING OPERATIONS	80,560			82,066			91,087			(174,435		)	79,278
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income taxes	—			—			1,282			—			1,282
NET INCOME	80,560			82,066			92,369			(174,435		)	80,560
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	5,373			5,373			4,887			(10,260		)	5,373
New Zealand joint venture cash flow hedges	878			878			879			(1,757		)	878
Amortization of pension and postretirement plans, net of income tax	3,401			3,401			(4,959		)	1,558			3,401
Total other comprehensive income	9,652			9,652			807			(10,459		)	9,652
COMPREHENSIVE INCOME	$	90,212		$	91,718		$	93,176		$	(184,894	)	$	90,212

	CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2013
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	1,187,580		$	—		$	1,187,580
Costs and Expenses
Cost of sales	—			—			850,866			—			850,866
Selling and general expenses	—			7,357			40,997			—			48,354
Other operating (income) expense, net	(1,701		)	1,187			(4,039		)	—			(4,553		)
	(1,701		)	8,544			887,824			—			894,667
Equity in income of New Zealand joint venture	—			—			562			—			562
OPERATING INCOME (LOSS) BEFORE GAIN ON CONSOLIDATION OF NEW ZEALAND JOINT VENTURE	1,701			(8,544		)	300,318			—			293,475
Gain on consolidation of New Zealand joint venture	—			—			16,098			—			16,098
OPERATING INCOME (LOSS)	1,701			(8,544		)	316,416			—			309,573
Interest (expense) income	(9,879		)	(21,410		)	521			—			(30,768		)
Interest and miscellaneous income (expense), net	6,716			(3,470		)	(1,335		)	—			1,911
Equity in income from subsidiaries	293,706			316,241			—			(609,947		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	292,244			282,817			315,602			(609,947		)	280,716
Income tax benefit (expense)	—			10,889			(42,089		)	—			(31,200		)
INCOME FROM CONTINUING OPERATIONS	292,244			293,706			273,513			(609,947		)	249,516
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income taxes	—			—			44,477			—			44,477
NET INCOME	292,244			293,706			317,990			(609,947		)	293,993
Less: Net income attributable to noncontrolling interest	—			—			1,749			—			1,749
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	292,244			293,706			316,241			(609,947		)	292,244
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	237			237			(2,967		)	(474		)	(2,967		)
New Zealand joint venture cash flow hedges	3,663			3,663			4,209			(7,326		)	4,209
Amortization of pension and postretirement plans, net of income tax	12,326			12,326			9,578			(21,904		)	12,326
Total other comprehensive income	16,226			16,226			10,820			(29,704		)	13,568
COMPREHENSIVE INCOME	308,470			309,932			328,810			(639,651		)	307,561
Less: Comprehensive loss attributable to noncontrolling interest	—			—			(909		)	—			(909		)
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$	308,470		$	309,932		$	329,719		$	(639,651	)	$	308,470

	CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME For the Nine Months Ended September 30, 2012
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			All Other Subsidiaries (Non- guarantors)			Consolidating Adjustments			Total Consolidated
SALES	$	—		$	—		$	1,070,830		$	—		$	1,070,830
Costs and Expenses
Cost of sales	—			—			738,480			—			738,480
Selling and general expenses	—			7,977			42,656			—			50,633
Other operating expense (income), net	—			742			(6,870		)	—			(6,128		)
	—			8,719			774,266			—			782,985
Equity in income of New Zealand joint venture	—			—			249			—			249
OPERATING (LOSS) INCOME	—			(8,719		)	296,813			—			288,094
Interest (expense) income	(7,502		)	(31,359		)	2,728			—			(36,133		)
Interest and miscellaneous income (expense), net	5,086			1,558			(6,350		)	—			294
Equity in income from subsidiaries	205,492			233,057			—			(438,549		)	—
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	203,076			194,537			293,191			(438,549		)	252,255
Income tax benefit (expense)	—			10,955			(65,242		)	—			(54,287		)
INCOME FROM CONTINUING OPERATIONS	203,076			205,492			227,949			(438,549		)	197,968
DISCONTINUED OPERATIONS, NET
Income from discontinued operations, net of income tax	—			—			5,108			—			5,108
NET INCOME	203,076			205,492			233,057			(438,549		)	203,076
OTHER COMPREHENSIVE INCOME
Foreign currency translation adjustment	3,115			3,115			2,633			(5,748		)	3,115
New Zealand joint venture cash flow hedges	86			86			86			(172		)	86
Amortization of pension and postretirement plans, net of income tax	9,943			9,943			—			(9,943		)	9,943
Total other comprehensive income	13,144			13,144			2,719			(15,863		)	13,144
COMPREHENSIVE INCOME	$	216,220		$	218,636		$	235,776		$	(454,412	)	$	216,220

Schedule of Condensed Consolidating Balance Sheets

	CONDENSED CONSOLIDATING BALANCE SHEETS As of September 30, 2013
	Rayonier Inc. (Parent Issuer)		Subsidiary Guarantors		Non- guarantors		Consolidating Adjustments			Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$	172,938	$	25,928	$	61,872	$	—		$	260,738
Accounts receivable, less allowance for doubtful accounts	—		1,618		122,742		—			124,360
Inventory	—		—		133,985		—			133,985
Deferred tax asset	—		—		62,914		—			62,914
Prepaid and other current assets	—		5,258		53,926		—			59,184
Total current assets	172,938		32,804		435,439		—			641,181
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—		—		2,103,503		—			2,103,503
NET PROPERTY, PLANT AND EQUIPMENT	—		2,399		866,033		—			868,432
INVESTMENT IN JOINT VENTURE	—		—		—		—			—
INVESTMENT IN SUBSIDIARIES	1,520,817		2,746,434		—		(4,267,251		)	—
INTERCOMPANY NOTES RECEIVABLE	223,022		20,400		—		(243,422		)	—
OTHER ASSETS	3,808		35,670		165,526		—			205,004
TOTAL ASSETS	$	1,920,585	$	2,837,707	$	3,570,501	$	(4,510,673	)	$	3,818,120
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	$	—	$	1,738	$	97,232	$	—		$	98,970
Current maturities of long-term debt	—		10,000		—		—			10,000
Accrued taxes	—		3,529		16,617		—			20,146
Accrued payroll and benefits	—		12,969		13,515		—			26,484
Accrued interest	6,132		4,508		3,214		—			13,854
Accrued customer incentives	—		—		10,771		—			10,771
Other current liabilities	—		9,358		41,833		—			51,191
Current liabilities for dispositions and discontinued operations	—		—		8,446		—			8,446
Total current liabilities	6,132		42,102		191,628		—			239,862
LONG-TERM DEBT	325,000		1,029,770		291,567		—			1,646,337
NON-CURRENT LIABILITIES FOR DISPOSITIONS AND DISCONTINUED OPERATIONS	—		—		67,125		—			67,125
PENSION AND OTHER POSTRETIREMENT BENEFITS	—		131,037		27,626		—			158,663
OTHER NON-CURRENT LIABILITIES	—		8,818		12,436		—			21,254
INTERCOMPANY PAYABLE	—		105,163		102,854		(208,017		)	—
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,589,453		1,520,817		2,781,839		(4,302,656		)	1,589,453
Noncontrolling interest	—		—		95,426		—			95,426
TOTAL SHAREHOLDERS’ EQUITY	1,589,453		1,520,817		2,877,265		(4,302,656		)	1,684,879
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	1,920,585	$	2,837,707	$	3,570,501	$	(4,510,673	)	$	3,818,120

	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

Schedule of Condensed Consolidating Statements of Cash Flows

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 2013
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	389,405		$	394,700		$	291,478		$	(741,347	)	$	334,236
INVESTING ACTIVITIES
Capital expenditures	—			(335		)	(122,147		)	—			(122,482		)
Purchase of additional interest in New Zealand joint venture	—			—			(139,879		)	—			(139,879		)
Purchase of timberlands	—			—			(11,650		)	—			(11,650		)
Jesup mill cellulose specialties expansion	—			—			(137,392		)	—			(137,392		)
Proceeds from the disposition of Wood Products business	—			—			68,063			—			68,063
Change in restricted cash	—			—			3,989			—			3,989
Investment in Subsidiaries	(138,178		)	(455,014		)	—			593,192			—
Other	—			1,701			(1,542		)	—			159
CASH USED FOR INVESTING ACTIVITIES	(138,178		)	(453,648		)	(340,558		)	593,192			(339,192		)
FINANCING ACTIVITIES
Issuance of debt	175,000			375,000			57,885			—			607,885
Repayment of debt	(325,000		)	(56,527		)	(71,936		)	—			(453,463		)
Dividends paid	(175,079		)	—			—			—			(175,079		)
Proceeds from the issuance of common shares	9,205			—			—			—			9,205
Excess tax benefits on stock-based compensation	—			—			8,189			—			8,189
Debt issuance costs	—			—			—			—			—
Repurchase of common shares	(11,303		)	—			—			—			(11,303		)
Issuance of intercompany notes	(4,000		)	—			4,000			—			—
Intercompany distributions	—			(256,921		)	108,766			148,155			—
CASH (USED FOR) PROVIDED BY FINANCING ACTIVITIES	(331,177		)	61,552			106,904			148,155			(14,566		)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			(336		)	—			(336		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	(79,950		)	2,604			57,488			—			(19,858		)
Balance, beginning of year	252,888			23,324			4,384			—			280,596
Balance, end of period	$	172,938		$	25,928		$	61,872		$	—		$	260,738

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the Nine Months Ended September 30, 2012
	Rayonier Inc. (Parent Issuer)			Subsidiary Guarantors			Non- guarantors			Consolidating Adjustments			Total Consolidated
CASH PROVIDED BY OPERATING ACTIVITIES	$	23,916		$	105,407		$	317,407		$	(93,088	)	$	353,642
INVESTING ACTIVITIES
Capital expenditures	—			(240		)	(111,775		)	—			(112,015		)
Purchase of timberlands	—			—			(11,632		)	—			(11,632		)
Jesup mill cellulose specialties expansion	—			—			(104,782		)	—			(104,782		)
Change in restricted cash	—			—			(12,796		)	—			(12,796		)
Investment in Subsidiaries	—			(5,536		)	—			5,536			—
Other	—			(69		)	4,350			—			4,281
CASH USED FOR INVESTING ACTIVITIES	—			(5,845		)	(236,635		)	5,536			(236,944		)
FINANCING ACTIVITIES
Issuance of debt	325,000			15,000			15,000			—			355,000
Repayment of debt	(120,000		)	(53,153		)	(25,500		)	—			(198,653		)
Dividends paid	(152,358		)	—			—			—			(152,358		)
Proceeds from the issuance of common shares	20,732			—			—			—			20,732
Excess tax benefits on stock-based compensation	—			—			7,057			—			7,057
Debt issuance costs	(3,698		)	—			—			—			(3,698		)
Repurchase of common shares	(7,783		)	—			—			—			(7,783		)
Issuance of intercompany notes	(9,000		)	—			9,000			—			—
Intercompany distributions	—			(24,529		)	(63,023		)	87,552			—
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	52,893			(62,682		)	(57,466		)	87,552			20,297
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—			—			(123		)	—			(123		)
CASH AND CASH EQUIVALENTS
Change in cash and cash equivalents	76,809			36,880			23,183			—			136,872
Balance, beginning of year	—			68,953			9,650			—			78,603
Balance, end of period	$	76,809		$	105,833		$	32,833		$	—		$	215,475