EARNINGS PER COMMON SHARE

3 Months Ended

Mar. 31, 2016

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,
	2016		2015
Net Income		$15,058		$18,180
Less: Net income attributable to noncontrolling interest	586		433
Net income attributable to Rayonier Inc.		$14,472		$17,747

Shares used for determining basic earnings per common share	122,556,239		126,614,334
Dilutive effect of:
Stock options	53,526		168,680
Performance and restricted shares	35,124		51,494
Assumed conversion of Senior Exchangeable Notes (a)	—		892,885
Assumed conversion of warrants (a)	—		—
Shares used for determining diluted earnings per common share	122,644,889		127,727,393

Basic earnings per common share attributable to Rayonier Inc.:		$0.12		$0.14

Diluted earnings per common share attributable to Rayonier Inc.:		$0.12		$0.14



	Three Months Ended March 31,
	2016	2015
Anti-dilutive shares excluded from the computations of diluted earnings per share:
Stock options, performance and restricted shares	1,095,453	757,960
Assumed conversion of exchangeable note hedges (a)	—	892,885
Total	1,095,453	1,650,845

(a) Rayonier did not issue additional shares upon maturity of the Senior Exchangeable Notes due August 2015 (the “2015

Notes”) due to offsetting hedges. ASC 260, Earnings Per Share required the assumed conversion of the 2015 Notes to be included in dilutive shares if the average stock price for the period exceeded the strike price, while the conversion of the hedges was excluded since they were anti-dilutive. The full dilutive effect of the 2015 Notes was included for the prior period presented.

Rayonier did not distribute additional shares upon the February 2016 maturity of the warrants sold in conjunction with the 2015 Notes as the stock price did not exceed $28.11 per share. The warrants were not dilutive for the three months ended March 31, 2016 and 2015 as the average stock price for the periods the warrants were outstanding did not exceed the strike price.