CONSOLIDATING FINANCIAL STATEMENTS

3 Months Ended

Mar. 31, 2020

Condensed Financial Information Disclosure [Abstract]

CONSOLIDATING FINANCIAL STATEMENTS

CONSOLIDATING FINANCIAL STATEMENTS

The condensed consolidating financial information below follows the same accounting policies as described in the consolidated financial statements, except for the use of the equity method of accounting to reflect ownership interests in wholly-owned subsidiaries, which are eliminated upon consolidation, and the allocation of certain expenses of Rayonier Inc. incurred for the benefit of its subsidiaries.

In March 2012, Rayonier Inc. issued $325 million of 3.75% Senior Notes due 2022. In connection with these notes, the Company provides the following condensed consolidating financial information in accordance with SEC Regulation S-X Rule 3-10, Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.

The subsidiary guarantors, Rayonier Operating Company LLC (“ROC”) and Rayonier TRS Holdings Inc., are wholly-owned by the parent company, Rayonier Inc. The notes are fully and unconditionally guaranteed on a joint and several basis by the guarantor subsidiaries.

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
	Three Months Ended March 31, 2020
	Rayonier Inc. (Parent Issuer)	Subsidiary Guarantors	Non- guarantors	Consolidating Adjustments	Total Consolidated
SALES	—	—	$259,130	—	$259,130
Costs and Expenses
Cost of sales	—	—	(209,499)	—	(209,499)
Selling and general expenses	—	(5,060)	(4,908)	—	(9,968)
Other operating expense, net	—	(2,524)	1,413	—	(1,111)
	—	(7,584)	(212,994)	—	(220,578)
OPERATING (LOSS) INCOME	—	(7,584)	46,136	—	38,552
Interest expense	(3,139)	(5,063)	(14)	—	(8,216)
Interest and miscellaneous income (expense), net	(457)	500	(252)	—	(209)
Equity in income from subsidiaries	29,450	41,809	—	(71,259)	—
INCOME BEFORE INCOME TAXES	25,854	29,662	45,870	(71,259)	30,127
Income tax expense	—	(212)	(3,494)	—	(3,706)
NET INCOME	25,854	29,450	42,376	(71,259)	26,421
Less: Net income attributable to noncontrolling interest	—	—	(567)	—	(567)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	25,854	29,450	41,809	(71,259)	25,854
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment, net of income tax	(33,894)	—	(44,023)	33,894	(44,023)
Cash flow hedges, net of income tax	(82,376)	(78,699)	(4,776)	82,376	(83,475)
Amortization of pension and postretirement plans, net of income tax	217	217	—	(217)	217
Total other comprehensive loss	(116,053)	(78,482)	(48,799)	116,053	(127,281)
COMPREHENSIVE (LOSS) INCOME	(90,199)	(49,032)	(6,423)	44,794	(100,860)
Less: Comprehensive loss attributable to noncontrolling interest	—	—	10,661	—	10,661
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC.	($90,199)	($49,032)	$4,238	$44,794	($90,199)

	CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
	Three Months Ended March 31, 2019
	Rayonier Inc. (Parent Issuer)	Subsidiary Guarantors	Non- guarantors	Consolidating Adjustments	Total Consolidated
SALES	—	—	$191,546	—	$191,546
Costs and Expenses
Cost of sales	—	—	(143,251)	—	(143,251)
Selling and general expenses	—	(4,843)	(4,967)	—	(9,810)
Other operating (expense) income, net	—	—	35	—	35
	—	(4,843)	(148,183)	—	(153,026)
OPERATING (LOSS) INCOME	—	(4,843)	43,363	—	38,520
Interest expense	(3,138)	(4,547)	(25)	—	(7,710)
Interest and miscellaneous income (expense), net	(457)	964	825	—	1,332
Equity in income from subsidiaries	28,389	37,432	—	(65,821)	—
INCOME BEFORE INCOME TAXES	24,794	29,006	44,163	(65,821)	32,142
Income tax expense	—	(617)	(3,732)	—	(4,349)
NET INCOME	24,794	28,389	40,431	(65,821)	27,793
Less: Net income attributable to noncontrolling interest	—	—	(2,999)	—	(2,999)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	24,794	28,389	37,432	(65,821)	24,794
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment, net of income tax	4,679	(90)	6,122	(4,678)	6,033
Cash flow hedges, net of income tax	(10,884)	(11,548)	862	10,884	(10,686)
Amortization of pension and postretirement plans, net of income tax	112	112	—	(112)	112
Total other comprehensive (loss) income	(6,093)	(11,526)	6,984	6,094	(4,541)
COMPREHENSIVE INCOME	18,701	16,863	47,415	(59,727)	23,252
Less: Comprehensive loss attributable to noncontrolling interest	—	—	(4,551)	—	(4,551)
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.	$18,701	$16,863	$42,864	($59,727)	$18,701

	CONDENSED CONSOLIDATING BALANCE SHEETS
	As of March 31, 2020
	Rayonier Inc. (Parent Issuer)	Subsidiary Guarantors	Non- guarantors	Consolidating Adjustments	Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$6,102	$107,482	$18,778	—	$132,362
Accounts receivable, less allowance for doubtful accounts	—	1,015	27,280	—	28,295
Inventory	—	—	13,093	—	13,093
Prepaid expenses	—	1,237	13,704	—	14,941
Other current assets	—	93	291	—	384
Total current assets	6,102	109,827	73,146	—	189,075
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—	—	2,355,581	—	2,355,581
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS	—	—	88,833	—	88,833
NET PROPERTY, PLANT AND EQUIPMENT	—	16,305	5,504	—	21,809
RESTRICTED CASH	—	—	475	—	475
RIGHT-OF-USE ASSETS	—	31,075	60,878	—	91,953
INVESTMENT IN SUBSIDIARIES	1,660,850	3,019,260	—	(4,680,110)	—
INTERCOMPANY RECEIVABLE	(23,204)	(621,951)	645,155	—	—
OTHER ASSETS	2	(2,331)	42,353	—	40,024
TOTAL ASSETS	$1,643,750	$2,552,185	$3,271,925	($4,680,110)	$2,787,750
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	—	$4,243	$16,594	—	$20,837
Accrued taxes	—	127	3,289	—	3,416
Accrued payroll and benefits	—	2,291	1,511	—	3,802
Accrued interest	6,094	1,948	—	—	8,042
Deferred revenue	—	—	6,718	—	6,718
Other current liabilities	—	4,761	21,698	—	26,459
Total current liabilities	6,094	13,370	49,810	—	69,274
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS	324,263	731,007	—	—	1,055,270
PENSION AND OTHER POSTRETIREMENT BENEFITS	—	25,342	(684)	—	24,658
LONG-TERM LEASE LIABILITY	—	26,842	56,516	—	83,358
OTHER NON-CURRENT LIABILITIES	—	94,774	60,748	—	155,522
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,313,393	1,660,850	3,019,260	(4,680,110)	1,313,393
Noncontrolling interest	—	—	86,275	—	86,275
TOTAL SHAREHOLDERS’ EQUITY	1,313,393	1,660,850	3,105,535	(4,680,110)	1,399,668
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$1,643,750	$2,552,185	$3,271,925	($4,680,110)	$2,787,750

	CONDENSED CONSOLIDATING BALANCE SHEETS
	As of December 31, 2019
	Rayonier Inc. (Parent Issuer)	Subsidiary Guarantors	Non- guarantors	Consolidating Adjustments	Total Consolidated
ASSETS
CURRENT ASSETS
Cash and cash equivalents	$303	$45,792	$22,640	—	$68,735
Accounts receivable, less allowance for doubtful accounts	—	4,113	23,014	—	27,127
Inventory	—	—	14,518	—	14,518
Prepaid expenses	—	1,361	13,367	—	14,728
Other current assets	—	111	756	—	867
Total current assets	303	51,377	74,295	—	125,975
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	—	—	2,482,047	—	2,482,047
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS	—	—	81,791	—	81,791
NET PROPERTY, PLANT AND EQUIPMENT	—	16,568	5,683	—	22,251
RESTRICTED CASH	—	—	1,233	—	1,233
RIGHT-OF-USE ASSET	—	32,253	67,689	—	99,942
INVESTMENT IN SUBSIDIARIES	1,709,958	3,072,304	—	(4,782,262)	—
INTERCOMPANY RECEIVABLE	56,935	(643,960)	587,025	—	—
OTHER ASSETS	2	(67)	47,822	—	47,757
TOTAL ASSETS	$1,767,198	$2,528,475	$3,347,585	($4,782,262)	$2,860,996
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES
Accounts payable	—	$2,866	$15,294	—	$18,160
Current maturities of long-term debt	—	82,000	—	—	82,000
Accrued taxes	—	59	2,973	—	3,032
Accrued payroll and benefits	—	5,585	3,284	—	8,869
Accrued interest	3,047	2,158	—	—	5,205
Deferred revenue	—	—	11,440	—	11,440
Other current liabilities	—	4,453	18,027	—	22,480
Total current liabilities	3,047	97,121	51,018	—	151,186
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS	324,170	648,959	—	—	973,129
PENSION AND OTHER POSTRETIREMENT BENEFITS	—	25,996	(685)	—	25,311
LONG-TERM LEASE LIABILITY	—	28,001	62,480	—	90,481
OTHER NON-CURRENT LIABILITIES	—	18,440	64,807	—	83,247
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,439,981	1,709,958	3,072,304	(4,782,262)	1,439,981
Noncontrolling interest	—	—	97,661	—	97,661
TOTAL SHAREHOLDERS’ EQUITY	1,439,981	1,709,958	3,169,965	(4,782,262)	1,537,642
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$1,767,198	$2,528,475	$3,347,585	($4,782,262)	$2,860,996

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
	Three Months Ended March 31, 2020
	Rayonier Inc. (Parent Issuer)	Subsidiary Guarantors	Non- guarantors	Consolidating Adjustments	Total Consolidated
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES	$79,682	$16,257	($66,760)	—	$29,179
INVESTING ACTIVITIES
Capital expenditures	—	—	(17,176)	—	(17,176)
Real estate development investments	—	—	(1,727)	—	(1,727)
Purchase of timberlands	—	—	(24,122)	—	(24,122)
Net proceeds from large disposition of timberlands	—	—	115,666	—	115,666
Investment in subsidiaries	—	4,237	—	(4,237)	—
Other	—	—	2,070	—	2,070
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	—	4,237	74,711	(4,237)	74,711
FINANCING ACTIVITIES
Issuance of debt	—	20,000	—	—	20,000
Repayment of debt	—	(20,000)	—	—	(20,000)
Dividends paid	(34,841)	(2,524)	2,458	—	(34,907)
Proceeds from the issuance of common shares under incentive stock plan	66	—	—	—	66
Repurchase of common shares	—	—	—	—	—
Repurchase of common shares made under repurchase program	—	(3,152)	—	—	(3,152)
Distribution to minority shareholder	—	—	(725)	—	(725)
Intercompany distributions	(39,108)	46,872	(12,001)	4,237	—
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	(73,883)	41,196	(10,268)	4,237	(38,718)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—	—	(2,303)	—	(2,303)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Change in cash, cash equivalents and restricted cash	5,799	61,690	(4,620)	—	62,869
Balance, beginning of year	303	45,792	23,873	—	69,968
Balance, end of period	$6,102	$107,482	$19,253	—	$132,837

	CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS
	Three Months Ended March 31, 2019
	Rayonier Inc. (Parent Issuer)	Subsidiary Guarantors	Non- guarantors	Consolidating Adjustments	Total Consolidated
CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES	($7,623)	($2,265)	$80,805	—	$70,917
INVESTING ACTIVITIES
Capital expenditures	—	—	(14,122)	—	(14,122)
Real estate development investments	—	—	(1,677)	—	(1,677)
Purchase of timberlands	—	—	(12,349)	—	(12,349)
Investment in subsidiaries	—	6,495	—	(6,495)	—
Other	—	—	2,337	—	2,337
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	—	6,495	(25,811)	(6,495)	(25,811)
FINANCING ACTIVITIES
Dividends paid	(34,858)	(19)	—	—	(34,877)
Proceeds from the issuance of common shares under incentive stock plan	597	—	—	—	597
Repurchase of common shares	(33)	—	—	—	(33)
Other	—	—	(16)	—	(16)
Distribution to minority shareholder	—	—	(3,594)	—	(3,594)
Intercompany distributions	58,146	(10,183)	(54,458)	6,495	—
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	23,852	(10,202)	(58,068)	6,495	(37,923)
EFFECT OF EXCHANGE RATE CHANGES ON CASH	—	—	843	—	843
CASH, CASH EQUIVALENTS AND RESTRICTED CASH
Change in cash, cash equivalents and restricted cash	16,229	(5,972)	(2,231)	—	8,026
Balance, beginning of year	361	104,777	51,316	—	156,454
Balance, end of period	$16,590	$98,805	$49,085	—	$164,480