Earnings Per Common Share (Tables)

12 Months Ended

Dec. 31, 2014

Schedule of Earnings Per Share, Basic and Diluted

The following table provides details of the calculation of basic and diluted EPS for the three years ended December 31:



	2014	2013	2012
Income from continuing operations	$54,443	$105,843	$16,774
Less: Net (loss) income from continuing operations attributable to noncontrolling interest	(1,491)	1,902	—
Income from continuing operations attributable to Rayonier Inc.	$55,934	$103,941	$16,774

Income from discontinued operations attributable to Rayonier Inc.	$43,403	$267,955	$261,911

Net income attributable to Rayonier Inc.	$99,337	$371,896	$278,685

Shares used for determining basic earnings per common share	126,458,710	125,717,311	122,711,802
Dilutive effect of:
Stock options	323,125	463,949	634,218
Performance and restricted shares	149,292	158,319	757,308
Assumed conversion of Senior Exchangeable Notes (a)	2,149,982	1,965,177	2,888,650
Assumed conversion of warrants (a)	1,957,154	1,800,345	1,710,445
Shares used for determining diluted earnings per common share	131,038,263	130,105,101	128,702,423
Basic earnings per common share attributable to Rayonier Inc.:
Continuing operations	$0.44	$0.83	$0.14
Discontinued operations	0.34	2.13	2.13
Net income	$0.78	$2.96	$2.27
Diluted earnings per common share attributable to Rayonier Inc.:
Continuing operations	$0.43	$0.80	$0.13
Discontinued operations	0.33	2.06	2.04
Net income	$0.76	$2.86	$2.17

The Senior Exchangeable Notes due 2012 (the “2012 Notes”) matured in October 2012 and $41.5 million of the Senior Exchangeable Notes due 2015 (the “2015 Notes”) were redeemed by the noteholders in September and October 2013; however, no additional shares were issued due to offsetting exchangeable note hedges. Similarly, Rayonier will not issue additional shares upon future exchange or maturity of the remaining 2015 Notes due to offsetting hedges. ASC 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 included for the year ended December 31, 2012. The full dilutive effect of the 2015 Notes was included for the year ended December 31, 2012, while only a proportional amount, based on the length of time the $41.5 million balance was outstanding before the exchange, was included for the year ended December 31, 2013. The year ended December 31, 2014 included the dilutive effect of the $131 million 2015 Notes, as this was the principal balance outstanding during the full year.

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share



	2014	2013	2012
Anti-dilutive shares excluded from the computations of diluted earnings per share:
Stock options, performance and restricted shares	461,663	337,145	224,918
Assumed conversion of exchangeable note hedges (a)	2,149,982	1,965,177	2,888,650
Total	2,611,645	2,302,322	3,113,568

(a)

The warrants sold in conjunction with the 2012 Notes began maturing on January 15, 2013 and matured ratably through March 27, 2013, resulting in the issuance of 2,135,221 shares. The dilutive impact of these warrants was calculated based on the length of time they were outstanding before settlement. Rayonier will distribute additional shares upon maturity of the warrants associated with the 2015 Notes if the stock price exceeds $28.12 per share. The exchange price on the warrants is lower than prior periods as it has been adjusted to reflect the spin-off of the Performance Fibers business. For further information, see Note 13 — Debt.