SEGMENT AND GEOGRAPHICAL INFORMATION

12 Months Ended

Dec. 31, 2019

Rayonier operates in five reportable segments: Southern Timber, Pacific Northwest Timber, New Zealand Timber, Real Estate and Trading.

See Note 1 - Summary of Significant Accounting Policies for a discussion of the current year reclassification of Real Estate segment sales related to marketing fees and deferred revenue adjustments from Improved Development to Other.

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 segment operating income (loss) and Adjusted EBITDA. Asset information is not reported by segment, as the company does not produce asset information by segment internally.

Operating income as presented in the Consolidated Statements of Income and Comprehensive Income is equal to segment income. Certain income (loss) items in the Consolidated Statements of Income and Comprehensive Income are not allocated to segments. These items, which include interest income (expense), miscellaneous income (expense) and income tax expense, are not considered by management to be part of segment operations and are included under “Corporate and other.”

Segment information for each of the three years ended December 31, 2019 follows:



	Sales by Product Line
	2019			2018			2017
Southern Timber		$194,111			$169,995			$144,510
Pacific Northwest Timber	85,414			109,832			91,877
New Zealand Timber	241,861			249,014			223,299
Real Estate
Improved Development	5,882			8,336			6,889
Unimproved Development	19,476			8,621			16,405
Rural	29,852			22,689			18,632
Timberlands & Non-Strategic	19,133			98,872			70,590
Large Dispositions	—			—			95,351
Other (a)	544			57			(541		)
Total Real Estate	74,887			138,575			207,326
Trading	115,438			148,814			152,584
Intersegment eliminations	(155		)	(92		)	—
Total Sales		$711,556			$816,138			$819,596


(a)	Includes marketing fees and deferred revenue adjustments related to Improved Development sales.



	Operating Income (Loss)
	2019			2018			2017
Southern Timber		$57,804			$44,245			$42,254
Pacific Northwest Timber	(12,427		)	8,137			1,127
New Zealand Timber	48,035			62,754			57,567
Real Estate (a)	38,665			76,240			130,856
Trading	8			953			4,578
Corporate and other	(25,058		)	(22,261		)	(20,891		)
Total Operating Income	107,027			170,068			215,491
Unallocated interest expense and other	(26,409		)	(27,502		)	(32,231		)
Total Income before Income Taxes		$80,618			$142,566			$183,260


(a)	The year 2017 includes Large Dispositions of $67.0 million.



	Gross Capital Expenditures
	2019		2018		2017
Capital Expenditures (a)
Southern Timber		$34,574		$35,388		$34,476
Pacific Northwest Timber	11,220		9,311		10,254
New Zealand Timber	17,357		17,318		17,046
Real Estate	204		284		1,348
Corporate and other	641		24		2,221
Total capital expenditures		$63,996		$62,325		$65,345

Timberland Acquisitions
Southern Timber		$98,927		$45,943		$220,051
Pacific Northwest Timber	7,340		—		1,483
New Zealand Timber	36,020		11,665		21,376
Total timberland acquisitions		$142,287		$57,608		$242,910

Total Gross Capital Expenditures		$206,283		$119,933		$308,255


(a)	Excludes timberland acquisitions presented separately in addition to spending on the Rayonier office building of $6.1 million in 2017 and real estate development investments of $6.8 million, $9.5 million and $15.8 million in the years 2019, 2018 and 2017, respectively.



	Depreciation, Depletion and Amortization
	2019		2018		2017
Southern Timber		$61,923		$58,609		$49,357
Pacific Northwest Timber	29,165		32,779		32,008
New Zealand Timber	27,761		28,007		27,499
Real Estate (a)	8,229		23,566		36,343
Corporate and other	1,157		1,160		794
Total		$128,235		$144,121		$146,001


(a)	The year 2017 includes Large Dispositions of $18.4 million.



	Non-Cash Cost of Land and Improved Development
	2019		2018		2017
Real Estate (a)		$12,565		$23,553		$23,498

(a) The year 2017 includes Large Dispositions of $9.8 million.



	Geographical Operating Information
	Sales						Operating Income						Identifiable Assets
	2019		2018		2017		2019		2018		2017		2019		2018
United States		$354,395		$390,396		$419,402		$58,945		$83,357		$138,528		$2,288,642		$2,282,480
New Zealand	357,161		425,742		400,194		48,082		86,711		76,963		572,354		498,186
Total		$711,556		$816,138		$819,596		$107,027		$170,068		$215,491		$2,860,996		$2,780,666