Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Title of each class | Trading Symbol | Exchange | ||||||
Rayonier Inc.: | Emerging growth company | |||||||||||||||||||
Rayonier, L.P.: | Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ||||||||||||||
Rayonier Inc.: | ☐ | |||||||||||||
Rayonier, L.P.: | ☐ |
PAGE | ||||||||||||||
Item 8.01 | ||||||||||||||
Item 9.01. | ||||||||||||||
ITEM 8.01. | Other Events. |
ITEM 9.01. | Financial Statements and Exhibits. |
(a) | Financial Statements of Businesses Acquired. |
(b) | Pro Forma Financial Information. |
(d) | Exhibits. |
Exhibit No. | Exhibit Description | |||||||
23.1 | ||||||||
23.2 | ||||||||
99.1 | ||||||||
99.2 | ||||||||
99.3 | ||||||||
99.4 | ||||||||
99.5 | ||||||||
99.6 | ||||||||
99.7 | ||||||||
99.8 | ||||||||
99.9 | ||||||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
RAYONIER INC. | ||||||||
BY: | /s/ MARK R. BRIDWELL | |||||||
Mark R. Bridwell | ||||||||
Vice President, General Counsel and Corporate Secretary | ||||||||
RAYONIER, L.P. | ||||||||
BY: | /s/ MARK R. BRIDWELL | |||||||
Mark R. Bridwell | ||||||||
Vice President, General Counsel and Corporate Secretary | ||||||||
(acres in 000s) | As of March 31, 2020 | As of December 31, 2019 | |||||||||||||||||||||||||||||||||
Owned | Leased | Total | Owned | Leased | Total | ||||||||||||||||||||||||||||||
Southern | |||||||||||||||||||||||||||||||||||
Alabama | 226 | 14 | 240 | 226 | 14 | 240 | |||||||||||||||||||||||||||||
Arkansas | — | 7 | 7 | — | 7 | 7 | |||||||||||||||||||||||||||||
Florida | 331 | 63 | 394 | 331 | 63 | 394 | |||||||||||||||||||||||||||||
Georgia | 628 | 77 | 705 | 628 | 77 | 705 | |||||||||||||||||||||||||||||
Louisiana | 140 | — | 140 | 128 | — | 128 | |||||||||||||||||||||||||||||
Mississippi | — | — | — | 67 | — | 67 | |||||||||||||||||||||||||||||
Oklahoma | 92 | — | 92 | 92 | — | 92 | |||||||||||||||||||||||||||||
South Carolina | 18 | — | 18 | 18 | — | 18 | |||||||||||||||||||||||||||||
Texas | 184 | — | 184 | 184 | — | 184 | |||||||||||||||||||||||||||||
1,619 | 161 | 1,780 | 1,674 | 161 | 1,835 | ||||||||||||||||||||||||||||||
Pacific Northwest | |||||||||||||||||||||||||||||||||||
Oregon | 61 | — | 61 | 61 | — | 61 | |||||||||||||||||||||||||||||
Washington | 323 | — | 323 | 318 | — | 318 | |||||||||||||||||||||||||||||
384 | — | 384 | 379 | — | 379 | ||||||||||||||||||||||||||||||
New Zealand (a) | 185 | 230 | 415 | 185 | 229 | 414 | |||||||||||||||||||||||||||||
Total | 2,188 | 391 | 2,579 | 2,238 | 390 | 2,628 |
(acres in 000s) | Acres Owned | ||||||||||||||||||||||||||||
December 31, 2019 | Acquisitions | Sales | Other (a) | March 31, 2020 | |||||||||||||||||||||||||
Southern | |||||||||||||||||||||||||||||
Alabama | 226 | — | — | — | 226 | ||||||||||||||||||||||||
Florida | 331 | — | — | — | 331 | ||||||||||||||||||||||||
Georgia | 628 | — | — | — | 628 | ||||||||||||||||||||||||
Louisiana | 128 | 12 | — | — | 140 | ||||||||||||||||||||||||
Mississippi | 67 | — | (67) | — | — | ||||||||||||||||||||||||
Oklahoma | 92 | — | — | — | 92 | ||||||||||||||||||||||||
South Carolina | 18 | — | — | — | 18 | ||||||||||||||||||||||||
Texas | 184 | — | — | — | 184 | ||||||||||||||||||||||||
1,674 | 12 | (67) | — | 1,619 | |||||||||||||||||||||||||
Pacific Northwest | |||||||||||||||||||||||||||||
Oregon | 61 | — | — | — | 61 | ||||||||||||||||||||||||
Washington | 318 | — | — | 5 | 323 | ||||||||||||||||||||||||
379 | — | — | 5 | 384 | |||||||||||||||||||||||||
New Zealand (b) | 185 | — | — | — | 185 | ||||||||||||||||||||||||
Total | 2,238 | 12 | (67) | 5 | 2,188 |
(acres in 000s) | Acres Leased | ||||||||||||||||||||||||||||
December 31, 2019 | New Leases | Sold/Expired Leases (a) | Other | March 31, 2020 | |||||||||||||||||||||||||
Southern | |||||||||||||||||||||||||||||
Alabama | 14 | — | — | — | 14 | ||||||||||||||||||||||||
Arkansas | 7 | — | — | — | 7 | ||||||||||||||||||||||||
Florida | 63 | — | — | — | 63 | ||||||||||||||||||||||||
Georgia | 77 | — | — | — | 77 | ||||||||||||||||||||||||
161 | — | — | — | 161 | |||||||||||||||||||||||||
New Zealand (b) | 229 | 1 | — | — | 230 | ||||||||||||||||||||||||
Total | 390 | 1 | — | — | 391 |
Three Months Ended March 31, | ||||||||||||||
Financial Information (in millions) | 2020 | 2019 | ||||||||||||
Sales | ||||||||||||||
Southern Timber | $53.0 | $60.8 | ||||||||||||
Pacific Northwest Timber | 31.1 | 20.5 | ||||||||||||
New Zealand Timber | 37.5 | 57.1 | ||||||||||||
Real Estate | ||||||||||||||
Improved Development | — | 0.3 | ||||||||||||
Unimproved Development | — | 1.0 | ||||||||||||
Rural | 2.4 | 12.7 | ||||||||||||
Timberlands & Non-Strategic | — | 6.9 | ||||||||||||
Other (a) | 0.1 | 0.1 | ||||||||||||
Large Dispositions | 116.0 | — | ||||||||||||
Total Real Estate | 118.5 | 21.0 | ||||||||||||
Trading | 19.0 | 32.1 | ||||||||||||
Total Sales | $259.1 | $191.5 | ||||||||||||
Operating Income (Loss) | ||||||||||||||
Southern Timber | $15.1 | $21.5 | ||||||||||||
Pacific Northwest Timber | (0.9) | (3.7) | ||||||||||||
New Zealand Timber | 5.4 | 15.7 | ||||||||||||
Real Estate (b) | 26.8 | 10.0 | ||||||||||||
Trading | — | 0.5 | ||||||||||||
Corporate and Other | (7.8) | (5.5) | ||||||||||||
Operating Income | 38.6 | 38.5 | ||||||||||||
Interest expense, interest income and other | (4.9) | (2.8) | ||||||||||||
Income tax expense | (3.7) | (4.3) | ||||||||||||
Net Income | 30.0 | 31.4 | ||||||||||||
Less: Net income attributable to noncontrolling interest | (0.5) | (3.0) | ||||||||||||
Net Income Attributable to Rayonier Operating Company LLC | $29.4 | $28.4 | ||||||||||||
Adjusted EBITDA (c) | ||||||||||||||
Southern Timber | $33.3 | $41.2 | ||||||||||||
Pacific Northwest Timber | 9.8 | 3.1 | ||||||||||||
New Zealand Timber | 10.2 | 22.0 | ||||||||||||
Real Estate | (1.1) | 17.4 | ||||||||||||
Trading | — | 0.5 | ||||||||||||
Corporate and Other | (5.0) | (5.2) | ||||||||||||
Total Adjusted EBITDA | $47.1 | $79.0 | ||||||||||||
Three Months Ended March 31, | |||||||||||
Southern Timber Overview | 2020 | 2019 | |||||||||
Sales Volume (in thousands of tons) | |||||||||||
Pine Pulpwood | 1,133 | 1,122 | |||||||||
Pine Sawtimber | 680 | 744 | |||||||||
Total Pine Volume | 1,813 | 1,865 | |||||||||
Hardwood | 30 | 70 | |||||||||
Total Volume | 1,843 | 1,935 | |||||||||
Percentage Delivered Sales | 32 | % | 27 | % | |||||||
Percentage Stumpage Sales | 68 | % | 73 | % | |||||||
Net Stumpage Pricing (dollars per ton) | |||||||||||
Pine Pulpwood | $16.05 | $17.94 | |||||||||
Pine Sawtimber | 26.67 | 26.38 | |||||||||
Weighted Average Pine | $20.03 | $21.31 | |||||||||
Hardwood | 12.74 | 13.80 | |||||||||
Weighted Average Total | $19.91 | $21.03 | |||||||||
Summary Financial Data (in millions of dollars) | |||||||||||
Timber Sales | $47.5 | $51.0 | |||||||||
Less: Cut, Haul & Freight | (10.8) | (10.3) | |||||||||
Net Stumpage Sales | $36.7 | $40.7 | |||||||||
Non-Timber Sales | 5.5 | 9.8 | |||||||||
Total Sales | $53.0 | $60.8 | |||||||||
Operating Income | $15.1 | $21.5 | |||||||||
(+) Depreciation, depletion and amortization | 18.2 | 19.7 | |||||||||
Adjusted EBITDA (a) | $33.3 | $41.2 | |||||||||
Other Data | |||||||||||
Period-End Acres (in thousands) | 1,780 | 1,803 |
Three Months Ended March 31, | |||||||||||
Pacific Northwest Timber Overview | 2020 | 2019 | |||||||||
Sales Volume (in thousands of tons) | |||||||||||
Pulpwood | 82 | 62 | |||||||||
Sawtimber | 393 | 220 | |||||||||
Total Volume | 476 | 283 | |||||||||
Sales Volume (converted to MBF) | |||||||||||
Pulpwood | 7,789 | 5,933 | |||||||||
Sawtimber | 50,406 | 28,945 | |||||||||
Total Volume | 58,194 | 34,878 | |||||||||
Percentage Delivered Sales | 78 | % | 100 | % | |||||||
Percentage Sawtimber Sales | 83 | % | 78 | % | |||||||
Delivered Log Pricing (in dollars per ton) | |||||||||||
Pulpwood | $38.11 | $45.15 | |||||||||
Sawtimber | 75.40 | 78.47 | |||||||||
Weighted Average Log Price | $68.29 | $71.11 | |||||||||
Summary Financial Data (in millions of dollars) | |||||||||||
Timber Sales | $30.6 | $20.1 | |||||||||
Less: Cut and Haul | (14.2) | (12.0) | |||||||||
Net Stumpage Sales | $16.4 | $8.1 | |||||||||
Non-Timber Sales | 0.5 | 0.4 | |||||||||
Total Sales | $31.1 | $20.5 | |||||||||
Operating Loss | ($0.9) | ($3.7) | |||||||||
(+) Depreciation, depletion and amortization | 10.7 | 6.8 | |||||||||
Adjusted EBITDA (a) | $9.8 | $3.1 | |||||||||
Other Data | |||||||||||
Period-End Acres (in thousands) | 384 | 379 | |||||||||
Sawtimber (in dollars per MBF) | $611 | $609 | |||||||||
Estimated Percentage of Export Volume | 2 | % | 16 | % |
Three Months Ended March 31, | |||||||||||
New Zealand Timber Overview | 2020 | 2019 | |||||||||
Sales Volume (in thousands of tons) | |||||||||||
Domestic Pulpwood (Delivered) | 101 | 113 | |||||||||
Domestic Sawtimber (Delivered) | 147 | 195 | |||||||||
Export Pulpwood (Delivered) | 16 | 41 | |||||||||
Export Sawtimber (Delivered) | 216 | 255 | |||||||||
Total Volume | 481 | 604 | |||||||||
Delivered Log Pricing (in dollars per ton) | |||||||||||
Domestic Pulpwood | $33.84 | $39.23 | |||||||||
Domestic Sawtimber | 69.97 | 83.42 | |||||||||
Export Sawtimber | 94.86 | 116.24 | |||||||||
Weighted Average Log Price | $74.16 | $90.49 | |||||||||
Summary Financial Data (in millions of dollars) | |||||||||||
Timber Sales | $35.6 | $54.6 | |||||||||
Less: Cut and Haul | (15.2) | (20.2) | |||||||||
Less: Port and Freight Costs | (8.0) | (9.7) | |||||||||
Net Stumpage Sales | $12.4 | $24.7 | |||||||||
Non-Timber Sales / Carbon Credits | 1.9 | 2.5 | |||||||||
Total Sales | $37.5 | $57.1 | |||||||||
Operating Income | $5.4 | $15.7 | |||||||||
(+) Depreciation, depletion and amortization | 4.8 | 6.3 | |||||||||
Adjusted EBITDA (a) | $10.2 | $22.0 | |||||||||
Other Data | |||||||||||
New Zealand Dollar to U.S. Dollar Exchange Rate (b) | 0.6500 | 0.6831 | |||||||||
Net Plantable Period-End Acres (in thousands) | 295 | 291 | |||||||||
Export Sawtimber (in dollars per JAS m3) | $110.29 | $135.15 | |||||||||
Domestic Sawtimber (in $NZD per tonne) | $118.41 | $134.33 |
Three Months Ended March 31, | |||||||||||
Real Estate Overview | 2020 | 2019 | |||||||||
Sales (in millions of dollars) | |||||||||||
Improved Development | — | $0.3 | |||||||||
Unimproved Development | — | 1.0 | |||||||||
Rural | 2.4 | 12.7 | |||||||||
Timberlands & Non-Strategic - U.S. | — | 6.9 | |||||||||
Large Dispositions (a) | 116.0 | — | |||||||||
Other (b) | 0.1 | 0.1 | |||||||||
Total Sales | $118.5 | $21.0 | |||||||||
Acres Sold | |||||||||||
Improved Development | — | 1.2 | |||||||||
Unimproved Development | — | 7 | |||||||||
Rural | 624 | 3,338 | |||||||||
Timberlands & Non-Strategic - U.S. | — | 2,333 | |||||||||
Large Dispositions (a) | 66,946 | — | |||||||||
Total Acres Sold | 67,570 | 5,679 | |||||||||
Gross Price per Acre (dollars per acre) | |||||||||||
Improved Development | — | $291,880 | |||||||||
Unimproved Development | — | 145,773 | |||||||||
Rural | 3,842 | 3,794 | |||||||||
Timberlands & Non-Strategic - U.S. | — | 2,972 | |||||||||
Large Dispositions (a) | 1,733 | — | |||||||||
Weighted Average (Total) (c) | $3,842 | $3,687 | |||||||||
Weighted Average (Adjusted) (d) | $3,842 | $3,628 | |||||||||
Sales (Excluding Large Dispositions) | $2.5 | $21.0 | |||||||||
Operating Income | $26.8 | $10.0 | |||||||||
(+) Depreciation, depletion and amortization - U.S. | 0.4 | 3.3 | |||||||||
(+) Non-cash cost of land and improved development - U.S. | 0.4 | 4.0 | |||||||||
(–) Large Dispositions (a) | (28.7) | — | |||||||||
Adjusted EBITDA (e) | ($1.1) | $17.4 |
Three Months Ended March 31, | |||||||||||
Capital Expenditures By Segment (in millions of dollars) | 2020 | 2019 | |||||||||
Timber Capital Expenditures | |||||||||||
Southern Timber | |||||||||||
Reforestation, silviculture and other capital expenditures | $7.1 | $2.8 | |||||||||
Property taxes | 1.7 | 1.8 | |||||||||
Lease payments | 1.1 | 1.6 | |||||||||
Allocated overhead | 1.3 | 1.2 | |||||||||
Subtotal Southern Timber | $11.1 | $7.4 | |||||||||
Pacific Northwest Timber | |||||||||||
Reforestation, silviculture and other capital expenditures | 2.3 | 2.8 | |||||||||
Property taxes | 0.2 | 0.2 | |||||||||
Allocated overhead | 0.8 | 0.8 | |||||||||
Subtotal Pacific Northwest Timber | $3.3 | $3.8 | |||||||||
New Zealand Timber | |||||||||||
Reforestation, silviculture and other capital expenditures | 1.5 | 1.7 | |||||||||
Property taxes | 0.2 | 0.2 | |||||||||
Lease payments | 0.4 | 0.3 | |||||||||
Allocated overhead | 0.6 | 0.7 | |||||||||
Subtotal New Zealand Timber | $2.7 | $2.9 | |||||||||
Total Timber Segments Capital Expenditures | $17.1 | $14.1 | |||||||||
Real Estate | 0.1 | — | |||||||||
Total Capital Expenditures | $17.2 | $14.1 | |||||||||
Timberland Acquisitions | |||||||||||
Southern Timber | $24.1 | $1.8 | |||||||||
Pacific Northwest Timber | — | 3.6 | |||||||||
New Zealand Timber | — | 6.9 | |||||||||
Subtotal Timberland Acquisitions | $24.1 | $12.3 | |||||||||
Real Estate Development Investments | $1.7 | $1.7 | |||||||||
Sales | Southern Timber | Pacific Northwest Timber | New Zealand Timber | Real Estate | Trading | Intersegment Eliminations | Total | |||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2019 | $60.8 | $20.5 | $57.1 | $21.0 | $32.1 | — | $191.5 | |||||||||||||||||||||||||||||||||||||
Volume | (1.9) | 5.5 | (10.9) | (18.6) | (8.4) | — | (34.3) | |||||||||||||||||||||||||||||||||||||
Price | (2.1) | 2.8 | (7.4) | 0.1 | (4.8) | — | (11.4) | |||||||||||||||||||||||||||||||||||||
Non-timber sales | (4.3) | 0.1 | (0.5) | — | 0.1 | — | (4.6) | |||||||||||||||||||||||||||||||||||||
Foreign exchange (a) | — | — | (1.1) | — | — | — | (1.1) | |||||||||||||||||||||||||||||||||||||
Other | 0.5 | (b) | 2.2 | (b) | 0.3 | (c) | 116.0 | (d) | — | — | 119.0 | |||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2020 | $53.0 | $31.1 | $37.5 | $118.5 | $19.0 | — | $259.1 |
Operating Income (Loss) | Southern Timber | Pacific Northwest Timber | New Zealand Timber | Real Estate | Trading | Corporate and Other | Total | |||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2019 | $21.5 | ($3.7) | $15.7 | $10.0 | $0.5 | ($5.5) | $38.5 | |||||||||||||||||||||||||||||||||||||
Volume | (0.9) | (0.4) | (4.0) | (11.6) | — | — | (16.9) | |||||||||||||||||||||||||||||||||||||
Price | (2.1) | 2.8 | (7.4) | 0.1 | — | — | (6.6) | |||||||||||||||||||||||||||||||||||||
Cost | 0.3 | (0.4) | (0.7) | (0.6) | (0.6) | 0.2 | (1.8) | |||||||||||||||||||||||||||||||||||||
Non-timber income | (4.3) | 0.1 | (0.4) | — | 0.1 | — | (4.5) | |||||||||||||||||||||||||||||||||||||
Foreign exchange (a) | — | — | 0.7 | — | — | — | 0.7 | |||||||||||||||||||||||||||||||||||||
Depreciation, depletion & amortization | 0.6 | 0.7 | 0.1 | 0.1 | — | — | 1.5 | |||||||||||||||||||||||||||||||||||||
Non-cash cost of land and improved development | — | — | — | 0.1 | — | — | 0.1 | |||||||||||||||||||||||||||||||||||||
Other (b) | — | — | 1.4 | 28.7 | — | (2.5) | 27.6 | |||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2020 | $15.1 | ($0.9) | $5.4 | $26.8 | — | ($7.8) | $38.6 |
Adjusted EBITDA (a) | Southern Timber | Pacific Northwest Timber | New Zealand Timber | Real Estate | Trading | Corporate and Other | Total | |||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2019 | $41.2 | $3.1 | $22.0 | $17.4 | $0.5 | ($5.2) | $79.0 | |||||||||||||||||||||||||||||||||||||
Volume | (1.8) | 4.2 | (5.1) | (18.0) | — | — | (20.7) | |||||||||||||||||||||||||||||||||||||
Price | (2.1) | 2.8 | (7.4) | 0.1 | — | — | (6.6) | |||||||||||||||||||||||||||||||||||||
Cost | 0.3 | (0.4) | (0.7) | (0.6) | (0.6) | 0.2 | (1.8) | |||||||||||||||||||||||||||||||||||||
Non-timber income | (4.3) | 0.1 | (0.4) | — | 0.1 | — | (4.5) | |||||||||||||||||||||||||||||||||||||
Foreign exchange (b) | — | — | 1.8 | — | — | — | 1.8 | |||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2020 | $33.3 | $9.8 | $10.2 | ($1.1) | — | ($5.0) | $47.1 |
March 31, | December 31, | ||||||||||
(millions of dollars) | 2020 | 2019 | |||||||||
Cash and cash equivalents | $126.3 | $68.4 | |||||||||
Total debt (a) | 732.7 | 732.8 | |||||||||
Member’s equity | 1,723.9 | 1,864.6 | |||||||||
Total capitalization (total debt plus member’s equity) | 2,456.6 | 2,597.4 | |||||||||
Debt to capital ratio | 30 | % | 28 | % | |||||||
(millions of dollars) | 2020 | 2019 | |||||||||
Cash provided by (used for): | |||||||||||
Operating activities | $29.6 | $71.4 | |||||||||
Investing activities | 74.7 | (25.8) | |||||||||
Financing activities | (45.0) | (54.6) |
Three Months Ended March 31, | |||||||||||
2020 | 2019 | ||||||||||
Net Income to Adjusted EBITDA Reconciliation | |||||||||||
Net income | $30.0 | $31.4 | |||||||||
Interest, net and miscellaneous income | 4.5 | 3.1 | |||||||||
Income tax expense | 3.7 | 4.3 | |||||||||
Depreciation, depletion and amortization | 34.3 | 36.5 | |||||||||
Non-cash cost of land and improved development | 0.4 | 4.0 | |||||||||
Non-operating expense (income) | 0.3 | (0.3) | |||||||||
Costs related to the merger with Pope Resources (a) | 2.5 | — | |||||||||
Large Dispositions (b) | (28.7) | — | |||||||||
Adjusted EBITDA | $47.1 | $79.0 |
Three Months Ended | Southern Timber | Pacific Northwest Timber | New Zealand Timber | Real Estate | Trading | Corporate and Other | Total | ||||||||||||||||||||||||||||||||||
March 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | $15.1 | ($0.9) | $5.4 | $26.8 | — | ($7.8) | $38.6 | ||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 18.2 | 10.7 | 4.8 | 0.4 | — | 0.3 | 34.3 | ||||||||||||||||||||||||||||||||||
Non-cash cost of land and improved development | — | — | — | 0.4 | — | — | 0.4 | ||||||||||||||||||||||||||||||||||
Costs related to the merger with Pope Resources (a) | — | — | — | — | — | 2.5 | 2.5 | ||||||||||||||||||||||||||||||||||
Large Dispositions (b) | — | — | — | (28.7) | — | — | (28.7) | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $33.3 | $9.8 | $10.2 | ($1.1) | — | ($5.0) | $47.1 | ||||||||||||||||||||||||||||||||||
March 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
Operating income (loss) | $21.5 | ($3.7) | $15.7 | $10.0 | $0.5 | ($5.5) | $38.5 | ||||||||||||||||||||||||||||||||||
Depreciation, depletion and amortization | 19.7 | 6.8 | 6.3 | 3.3 | — | 0.3 | 36.5 | ||||||||||||||||||||||||||||||||||
Non-cash cost of land and improved development | — | — | — | 4.0 | — | — | 4.0 | ||||||||||||||||||||||||||||||||||
Adjusted EBITDA | $41.2 | $3.1 | $22.0 | $17.4 | $0.5 | ($5.2) | $79.0 |
Three Months Ended March 31, | |||||||||||
2020 | 2019 | ||||||||||
Cash provided by operating activities | $29.6 | $71.4 | |||||||||
Capital expenditures (a) | (17.2) | (14.1) | |||||||||
Working capital and other balance sheet changes | 14.8 | 4.9 | |||||||||
CAD | 27.2 | 62.2 | |||||||||
Mandatory debt repayments | — | — | |||||||||
CAD after mandatory debt repayments | 27.2 | 62.2 |
Cash provided by (used for) investing activities | $74.7 | ($25.8) | |||||||||
Cash used for financing activities | ($45.0) | ($54.6) |
Three Months Ended March 31, | |||||||||||
2020 | 2019 | ||||||||||
Purchase of timberlands | ($24.1) | ($12.3) | |||||||||
Real Estate Development Investments | (1.7) | (1.7) | |||||||||
Distributions to New Zealand minority shareholder | (0.7) | (3.6) | |||||||||
Contractual Financial Obligations (in millions) | Total | Payments Due by Period | |||||||||||||||||||||||||||
Remaining 2020 | 2021-2022 | 2023-2024 | Thereafter | ||||||||||||||||||||||||||
Long-term debt (a) | $732.0 | $82.0 | — | $350.0 | $300.0 | ||||||||||||||||||||||||
Interest payments on long-term debt (b) | 107.3 | 14.0 | 41.9 | 37.5 | 13.9 | ||||||||||||||||||||||||
Operating leases — timberland (c) | 162.3 | 5.8 | 14.8 | 13.4 | 128.3 | ||||||||||||||||||||||||
Operating leases — PP&E, offices (c) | 7.2 | 1.6 | 2.1 | 1.5 | 2.0 | ||||||||||||||||||||||||
Commitments — derivatives (d) | 36.4 | 8.4 | 8.2 | 8.3 | 11.5 | ||||||||||||||||||||||||
Commitments — other (e) | 11.8 | 6.9 | 1.6 | 0.5 | 2.8 | ||||||||||||||||||||||||
Total contractual cash obligations | $1,057.0 | $118.7 | $68.6 | $411.2 | $458.5 |
Page | ||||||||
Consolidated Financial Statements | ||||||||
/s/ Ernst & Young LLP |
2019 | 2018 | 2017 | |||||||||||||||
SALES (NOTE 2) | $711,556 | $816,138 | $819,596 | ||||||||||||||
Costs and Expenses | |||||||||||||||||
Cost of sales | (558,350) | (605,259) | (568,253) | ||||||||||||||
Selling and general expenses | (41,646) | (41,951) | (40,245) | ||||||||||||||
Other operating (expense) income, net (Note 17) | (4,533) | 1,152 | 4,393 | ||||||||||||||
(604,529) | (646,058) | (604,105) | |||||||||||||||
OPERATING INCOME | 107,027 | 170,080 | 215,491 | ||||||||||||||
Interest expense | (19,160) | (27,498) | (32,548) | ||||||||||||||
Interest and other miscellaneous income, net | 7,134 | 5,904 | 3,194 | ||||||||||||||
INCOME BEFORE INCOME TAXES | 95,001 | 148,486 | 186,137 | ||||||||||||||
Income tax expense (Note 10) | (12,940) | (25,236) | (21,681) | ||||||||||||||
NET INCOME | 82,061 | 123,250 | 164,456 | ||||||||||||||
Less: Net income attributable to noncontrolling interest | (8,573) | (15,114) | (12,737) | ||||||||||||||
NET INCOME ATTRIBUTABLE TO RAYONIER OPERATING COMPANY | 73,488 | 108,136 | 151,719 | ||||||||||||||
OTHER COMPREHENSIVE (LOSS) INCOME | |||||||||||||||||
Foreign currency translation adjustment, net of income tax effect of $0, $0 and $0 | 963 | (22,759) | 9,114 | ||||||||||||||
Cash flow hedges, net of income tax effect of $664, $1,270 and $594 | (30,482) | 5,029 | 5,693 | ||||||||||||||
Actuarial change and amortization of pension and postretirement plan liabilities, net of income tax effect of $0, $711 and $0 | (1,350) | (1,630) | (208) | ||||||||||||||
Total other comprehensive (loss) income | (30,869) | (19,360) | 14,599 | ||||||||||||||
COMPREHENSIVE INCOME | 51,192 | 103,890 | 179,055 | ||||||||||||||
Less: Comprehensive income attributable to noncontrolling interest | (9,146) | (8,931) | (14,775) | ||||||||||||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER OPERATING COMPANY | $42,046 | $94,959 | $164,280 | ||||||||||||||
2019 | 2018 | ||||||||||
ASSETS | |||||||||||
CURRENT ASSETS | |||||||||||
Cash and cash equivalents | $68,434 | $148,013 | |||||||||
Accounts receivable, less allowance for doubtful accounts of $24 and $8 | 27,127 | 26,151 | |||||||||
Inventory (Note 18) | 14,518 | 15,703 | |||||||||
Prepaid logging roads | 12,128 | 11,976 | |||||||||
Prepaid expenses | 2,600 | 5,040 | |||||||||
Other current assets | 867 | 609 | |||||||||
Total current assets | 125,674 | 207,492 | |||||||||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 2,482,047 | 2,401,327 | |||||||||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (NOTE 7) | 81,791 | 85,609 | |||||||||
PROPERTY, PLANT AND EQUIPMENT | |||||||||||
Land | 4,131 | 4,131 | |||||||||
Buildings | 23,095 | 22,503 | |||||||||
Machinery and equipment | 4,339 | 3,534 | |||||||||
Construction in progress | 348 | 567 | |||||||||
Total property, plant and equipment, gross | 31,913 | 30,735 | |||||||||
Less—accumulated depreciation | (9,662) | (7,984) | |||||||||
Total property, plant and equipment, net | 22,251 | 22,751 | |||||||||
RESTRICTED CASH (NOTE 19) | 1,233 | 8,080 | |||||||||
RIGHT-OF-USE ASSETS (NOTE 4) | 99,942 | — | |||||||||
OTHER ASSETS (NOTE 20) | 47,757 | 55,044 | |||||||||
TOTAL ASSETS | $2,860,695 | $2,780,303 | |||||||||
LIABILITIES AND MEMBER’S EQUITY | |||||||||||
CURRENT LIABILITIES | |||||||||||
Accounts payable | $18,160 | $18,019 | |||||||||
Current maturities of long-term debt (Note 6) | 82,000 | — | |||||||||
Accrued taxes | 3,032 | 3,178 | |||||||||
Accrued payroll and benefits | 8,869 | 10,416 | |||||||||
Accrued interest | 2,162 | 1,959 | |||||||||
Deferred revenue | 11,440 | 10,447 | |||||||||
Other current liabilities | 22,480 | 16,474 | |||||||||
Total current liabilities | 148,143 | 60,493 | |||||||||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS (NOTE 6) | 648,958 | 648,764 | |||||||||
PENSION AND OTHER POSTRETIREMENT BENEFITS (NOTE 15) | 25,311 | 29,800 | |||||||||
LONG-TERM LEASE LIABILITY (NOTE 4) | 90,481 | — | |||||||||
OTHER NON-CURRENT LIABILITIES | 83,247 | 60,208 | |||||||||
MEMBER’S EQUITY | |||||||||||
Equity | 1,798,096 | 1,883,122 | |||||||||
Accumulated other comprehensive (loss) income (Note 21) | (31,202) | 239 | |||||||||
TOTAL CONTROLLING INTEREST MEMBER’S EQUITY | 1,766,894 | 1,883,361 | |||||||||
Noncontrolling interest | 97,661 | 97,677 | |||||||||
TOTAL MEMBER’S EQUITY | 1,864,555 | 1,981,038 | |||||||||
TOTAL LIABILITIES AND MEMBER’S EQUITY | $2,860,695 | $2,780,303 |
Member’s Equity | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest | Total Member’s Equity | ||||||||||||||||||||
Balance, December 31, 2016 | $1,367,834 | $856 | $85,142 | $1,453,832 | |||||||||||||||||||
Cumulative-effect adjustment due to adoption of ASU No. 2016-16 | (14,365) | — | — | (14,365) | |||||||||||||||||||
Net income | 151,719 | — | 12,737 | 164,456 | |||||||||||||||||||
Distributions to Rayonier Inc. | (6,602) | — | — | (6,602) | |||||||||||||||||||
Actuarial change and amortization of pension and postretirement plan liabilities | — | (208) | — | (208) | |||||||||||||||||||
Foreign currency translation adjustment | — | 7,416 | 1,698 | 9,114 | |||||||||||||||||||
Cash flow hedges | — | 5,353 | 340 | 5,693 | |||||||||||||||||||
Balance, December 31, 2017 | $1,498,586 | $13,417 | $99,917 | $1,611,920 | |||||||||||||||||||
Cumulative-effect adjustment due to adoption of ASU No. 2018-02 | 711 | (711) | — | — | |||||||||||||||||||
Net income | 108,136 | — | 15,114 | 123,250 | |||||||||||||||||||
Capital contribution through forgiveness of debt and accrued interest from Rayonier Inc. | 375,923 | — | — | 375,923 | |||||||||||||||||||
Distributions to Rayonier Inc. | (100,234) | — | — | (100,234) | |||||||||||||||||||
Actuarial change and amortization of pension and postretirement plan liabilities | — | (919) | — | (919) | |||||||||||||||||||
Foreign currency translation adjustment | — | (17,329) | (5,430) | (22,759) | |||||||||||||||||||
Cash flow hedges | — | 5,781 | (752) | 5,029 | |||||||||||||||||||
Distribution to minority shareholder | — | — | (11,172) | (11,172) | |||||||||||||||||||
Balance, December 31, 2018 | $1,883,122 | $239 | $97,677 | $1,981,038 | |||||||||||||||||||
Net income | 73,488 | — | 8,573 | 82,061 | |||||||||||||||||||
Distributions to Rayonier Inc. | (158,514) | — | — | (158,514) | |||||||||||||||||||
Actuarial change and amortization of pension and postretirement plan liabilities | — | (1,350) | — | (1,350) | |||||||||||||||||||
Foreign currency translation adjustment | — | 784 | 179 | 963 | |||||||||||||||||||
Cash flow hedges | — | (30,875) | 393 | (30,482) | |||||||||||||||||||
Distribution to minority shareholder | — | — | (9,161) | (9,161) | |||||||||||||||||||
Balance, December 31, 2019 | $1,798,096 | ($31,202) | $97,661 | $1,864,555 |
2019 | 2018 | 2017 | |||||||||||||||
OPERATING ACTIVITIES | |||||||||||||||||
Net income | $82,061 | $123,250 | $164,456 | ||||||||||||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||||||||
Depreciation, depletion and amortization | 128,235 | 144,121 | 127,566 | ||||||||||||||
Non-cash cost of land and improved development | 12,565 | 23,553 | 13,684 | ||||||||||||||
Stock-based incentive compensation expense | 6,904 | 6,428 | 5,396 | ||||||||||||||
Deferred income taxes | 11,314 | 22,832 | 21,980 | ||||||||||||||
Amortization of losses from pension and postretirement plans | 449 | 675 | 465 | ||||||||||||||
Gain on sale of large disposition of timberlands | — | — | (66,994) | ||||||||||||||
Other | (7,195) | (4,809) | (2,912) | ||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Receivables | (849) | 765 | (6,362) | ||||||||||||||
Inventories | 1,224 | 1,773 | (1,384) | ||||||||||||||
Accounts payable | (1,554) | (4,626) | 3,435 | ||||||||||||||
Income tax receivable/payable | — | — | (434) | ||||||||||||||
All other operating activities | (6,714) | 7,846 | 9,101 | ||||||||||||||
CASH PROVIDED BY OPERATING ACTIVITIES | 226,440 | 321,808 | 267,997 | ||||||||||||||
INVESTING ACTIVITIES | |||||||||||||||||
Capital expenditures | (63,996) | (62,325) | (65,345) | ||||||||||||||
Real estate development investments | (6,803) | (9,501) | (15,784) | ||||||||||||||
Purchase of timberlands | (142,287) | (57,608) | (242,910) | ||||||||||||||
Net proceeds from large disposition of timberlands | — | — | 95,243 | ||||||||||||||
Rayonier Operating Company office building under construction | — | — | (6,084) | ||||||||||||||
Other | (6,304) | (3,421) | (373) | ||||||||||||||
CASH USED FOR INVESTING ACTIVITIES | (219,390) | (132,855) | (235,253) | ||||||||||||||
FINANCING ACTIVITIES | |||||||||||||||||
Issuance of debt | 82,000 | 1,014 | 63,389 | ||||||||||||||
Issuance of intercompany debt | — | — | 32,000 | ||||||||||||||
Repayment of debt | — | (54,416) | (100,157) | ||||||||||||||
Distributions to Rayonier, Inc. | (164,618) | (94,675) | (40,928) | ||||||||||||||
Proceeds from shareholder distribution hedge | 135 | 2,025 | — | ||||||||||||||
Distribution to minority shareholder | (9,161) | (11,172) | — | ||||||||||||||
Debt issuance costs | (132) | — | — | ||||||||||||||
CASH USED FOR FINANCING ACTIVITIES | (91,776) | (157,223) | (45,696) | ||||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (1,700) | 571 | 580 | ||||||||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||||||||||||||||
Change in cash, cash equivalents and restricted cash | (86,426) | 32,301 | (12,372) | ||||||||||||||
Balance, beginning of year | 156,093 | 123,792 | 136,164 | ||||||||||||||
Balance, end of year | $69,667 | $156,093 | $123,792 |
2019 | 2018 | 2017 | |||||||||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||||||||||||
Cash paid during the year: | |||||||||||||||||
Interest (a) | $20,595 | $20,933 | $23,854 | ||||||||||||||
Income taxes | 1,691 | 2,150 | 514 | ||||||||||||||
Non-cash investing activity: | |||||||||||||||||
Capital assets purchased on account | 3,568 | 2,001 | 3,809 | ||||||||||||||
Non-cash financing activity: | |||||||||||||||||
Capital contribution through forgiveness of debt and accrued interest from Rayonier Inc. | — | 375,923 | — |
Contract Type | Performance Obligation | Timing of Revenue Recognition | General Payment Terms | |||||||||||||||||
Stumpage Pay-as-Cut | Right to harvest a unit (i.e. ton, MBF, JAS m3) of standing timber | As timber is severed (point-in-time) | Initial payment between 5% and 20% of estimated contract value; collection generally within 10 days of severance | |||||||||||||||||
Stumpage Lump Sum | Right to harvest an agreed upon acreage of standing timber | Contract execution (point-in-time) | Full payment due upon contract execution | |||||||||||||||||
Stumpage Agreed Volume | Right to harvest an agreed upon volume of standing timber | As timber is severed (over-time) | Payments made throughout contract term at the earlier of a specified harvest percentage or time elapsed | |||||||||||||||||
Delivered Wood (Domestic) | Delivery of a unit (i.e. ton, MBF, JAS m3) of timber to customer’s facility | Upon delivery to customer’s facility (point-in-time) | No initial payment and on open credit terms; collection generally within 30 days of invoice | |||||||||||||||||
Delivered Wood (Export) | Delivery of a unit (i.e. ton, MBF, JAS m3) onto export vessel | Upon delivery onto export vessel (point-in-time) | Letter of credit from an approved bank; collection generally within 30 days of delivery |
Practical Expedient | Description | ||||
Reassessment of expired or existing contracts | The Company elected not to reassess, at the application date, whether any expired or existing contracts contained leases, the lease classification for any expired or existing leases, and the accounting for initial direct costs for any existing leases. | ||||
Use of hindsight | The Company elected to use hindsight in determining the lease term (that is, when considering options to extend or terminate the lease and to purchase the underlying asset) and in assessing impairment of right-of-use assets. | ||||
Reassessment of existing or expired land easements | The Company elected not to evaluate existing or expired land easements that were not previously accounted for as leases under ASC 840, as allowed under the transition practical expedient. Going forward, new or modified land easements will be evaluated under ASU No. 2016-02. |
Year Ended December 31, | |||||||||||
2019 | 2018 | ||||||||||
Revenue recognized from contract liability balance at the beginning of the year (a) | $10,039 | $9,004 |
Year Ended | Southern Timber | Pacific Northwest Timber | New Zealand Timber | Real Estate | Trading | Elim. | Total | ||||||||||||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
Pulpwood | $86,537 | $10,350 | $32,925 | — | $13,351 | — | $143,163 | ||||||||||||||||||||||||||||||||||
Sawtimber | 67,360 | 72,377 | 198,481 | — | 101,255 | — | 439,473 | ||||||||||||||||||||||||||||||||||
Hardwood | 5,259 | — | — | — | — | — | 5,259 | ||||||||||||||||||||||||||||||||||
Total Timber Sales | 159,156 | 82,727 | 231,406 | — | 114,606 | — | 587,895 | ||||||||||||||||||||||||||||||||||
License Revenue, Primarily From Hunting | 18,270 | 717 | 361 | — | — | — | 19,348 | ||||||||||||||||||||||||||||||||||
Other Non-Timber/Carbon Revenue | 16,685 | 1,970 | 10,094 | — | — | — | 28,749 | ||||||||||||||||||||||||||||||||||
Agency Fee Income | — | — | — | — | 677 | — | 677 | ||||||||||||||||||||||||||||||||||
Total Non-Timber Sales | 34,955 | 2,687 | 10,455 | — | 677 | — | 48,774 | ||||||||||||||||||||||||||||||||||
Improved Development | — | — | — | 5,882 | — | — | 5,882 | ||||||||||||||||||||||||||||||||||
Unimproved Development | — | — | — | 19,476 | — | — | 19,476 | ||||||||||||||||||||||||||||||||||
Rural | — | — | — | 29,852 | — | — | 29,852 | ||||||||||||||||||||||||||||||||||
Timberlands & Non-Strategic | — | — | — | 19,133 | — | — | 19,133 | ||||||||||||||||||||||||||||||||||
Other | — | — | — | 544 | — | — | 544 | ||||||||||||||||||||||||||||||||||
Total Real Estate Sales | — | — | — | 74,887 | — | — | 74,887 | ||||||||||||||||||||||||||||||||||
Revenue from Contracts with Customers | 194,111 | 85,414 | 241,861 | 74,887 | 115,283 | — | 711,556 | ||||||||||||||||||||||||||||||||||
Intersegment | — | — | — | — | 155 | (155) | — | ||||||||||||||||||||||||||||||||||
Total Revenue | $194,111 | $85,414 | $241,861 | $74,887 | $115,438 | ($155) | $711,556 | ||||||||||||||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||||||||||||||||
Pulpwood | $80,134 | $14,305 | $28,737 | — | $13,771 | — | $136,947 | ||||||||||||||||||||||||||||||||||
Sawtimber | 60,295 | 92,166 | 213,206 | — | 134,299 | — | 499,966 | ||||||||||||||||||||||||||||||||||
Hardwood | 3,433 | — | — | — | — | — | 3,433 | ||||||||||||||||||||||||||||||||||
Total Timber Sales | 143,863 | 106,471 | 241,943 | — | 148,070 | — | 640,347 | ||||||||||||||||||||||||||||||||||
License Revenue, Primarily from Hunting | 16,285 | 709 | 401 | — | — | — | 17,395 | ||||||||||||||||||||||||||||||||||
Other Non-Timber/Carbon Revenue | 9,847 | 2,652 | 6,670 | — | — | — | 19,169 | ||||||||||||||||||||||||||||||||||
Agency Fee Income | — | — | — | — | 652 | — | 652 | ||||||||||||||||||||||||||||||||||
Total Non-Timber Sales | 26,132 | 3,361 | 7,071 | — | 652 | — | 37,216 | ||||||||||||||||||||||||||||||||||
Improved Development | — | — | — | 8,336 | — | — | 8,336 | ||||||||||||||||||||||||||||||||||
Unimproved Development | — | — | — | 8,621 | — | — | 8,621 | ||||||||||||||||||||||||||||||||||
Rural | — | — | — | 22,689 | — | — | 22,689 | ||||||||||||||||||||||||||||||||||
Timberlands & Non-Strategic | — | — | — | 98,872 | — | — | 98,872 | ||||||||||||||||||||||||||||||||||
Other | — | — | 57 | — | — | 57 | |||||||||||||||||||||||||||||||||||
Total Real Estate Sales | — | — | — | 138,575 | — | — | 138,575 | ||||||||||||||||||||||||||||||||||
Revenue from Contracts with Customers | 169,995 | 109,832 | 249,014 | 138,575 | 148,722 | — | 816,138 | ||||||||||||||||||||||||||||||||||
Intersegment | — | — | — | — | 92 | (92) | — | ||||||||||||||||||||||||||||||||||
Total Revenue | $169,995 | $109,832 | $249,014 | $138,575 | $148,814 | ($92) | $816,138 | ||||||||||||||||||||||||||||||||||
December 31, 2017 | |||||||||||||||||||||||||||||||||||||||||
Pulpwood | $67,836 | $11,242 | $24,934 | — | $13,352 | — | $117,364 | ||||||||||||||||||||||||||||||||||
Sawtimber | 50,891 | 77,477 | 197,521 | — | 137,854 | — | 463,743 | ||||||||||||||||||||||||||||||||||
Hardwood | 3,912 | — | — | — | — | — | 3,912 | ||||||||||||||||||||||||||||||||||
Total Timber Sales | 122,639 | 88,719 | 222,455 | — | 151,206 | — | 585,019 | ||||||||||||||||||||||||||||||||||
License Revenue, Primarily from Hunting | 16,004 | 646 | 227 | — | — | — | 16,877 | ||||||||||||||||||||||||||||||||||
Other Non-Timber/Carbon Revenue | 5,867 | 2,512 | 617 | — | — | — | 8,996 | ||||||||||||||||||||||||||||||||||
Agency Fee Income | — | — | — | — | 1,378 | — | 1,378 | ||||||||||||||||||||||||||||||||||
Total Non-Timber Sales | 21,871 | 3,158 | 844 | — | 1,378 | — | 27,251 | ||||||||||||||||||||||||||||||||||
Improved Development | — | — | — | 6,889 | — | — | 6,889 | ||||||||||||||||||||||||||||||||||
Unimproved Development | — | — | — | 16,405 | — | — | 16,405 | ||||||||||||||||||||||||||||||||||
Rural | — | — | — | 18,632 | — | — | 18,632 | ||||||||||||||||||||||||||||||||||
Timberlands & Non-Strategic | — | — | — | 70,590 | — | — | 70,590 | ||||||||||||||||||||||||||||||||||
Large Dispositions | — | — | — | 95,351 | — | — | 95,351 | ||||||||||||||||||||||||||||||||||
Other | — | — | — | (541) | — | — | (541) | ||||||||||||||||||||||||||||||||||
Total Real Estate Sales | — | — | — | 207,326 | — | — | 207,326 | ||||||||||||||||||||||||||||||||||
Revenue from Contracts with Customers | 144,510 | 91,877 | 223,299 | 207,326 | 152,584 | — | 819,596 | ||||||||||||||||||||||||||||||||||
Total Revenue | $144,510 | $91,877 | $223,299 | $207,326 | $152,584 | — | $819,596 |
Year Ended | Southern Timber | Pacific Northwest Timber | New Zealand Timber | Trading | Total | ||||||||||||||||||||||||
December 31, 2019 | |||||||||||||||||||||||||||||
Stumpage Pay-as-Cut | $71,943 | — | — | — | $71,943 | ||||||||||||||||||||||||
Stumpage Lump Sum | 7,428 | 2,749 | — | — | 10,177 | ||||||||||||||||||||||||
Total Stumpage | 79,371 | 2,749 | — | — | 82,120 | ||||||||||||||||||||||||
Delivered Wood (Domestic) | 71,054 | 79,978 | 80,974 | 5,488 | 237,494 | ||||||||||||||||||||||||
Delivered Wood (Export) | 8,731 | — | 150,432 | 109,118 | 268,281 | ||||||||||||||||||||||||
Total Delivered | 79,785 | 79,978 | 231,406 | 114,606 | 505,775 | ||||||||||||||||||||||||
Total Timber Sales | $159,156 | $82,727 | $231,406 | $114,606 | $587,895 | ||||||||||||||||||||||||
December 31, 2018 | |||||||||||||||||||||||||||||
Stumpage Pay-as-Cut | $72,385 | — | — | — | $72,385 | ||||||||||||||||||||||||
Stumpage Lump Sum | 4,988 | 11,854 | — | — | 16,842 | ||||||||||||||||||||||||
Total Stumpage | 77,373 | 11,854 | — | — | 89,227 | ||||||||||||||||||||||||
Delivered Wood (Domestic) | 60,931 | 94,617 | 90,631 | 6,141 | 252,320 | ||||||||||||||||||||||||
Delivered Wood (Export) | 5,559 | — | 151,312 | 141,929 | 298,800 | ||||||||||||||||||||||||
Total Delivered | 66,490 | 94,617 | 241,943 | 148,070 | 551,120 | ||||||||||||||||||||||||
Total Timber Sales | $143,863 | $106,471 | $241,943 | $148,070 | $640,347 | ||||||||||||||||||||||||
December 31, 2017 | |||||||||||||||||||||||||||||
Stumpage Pay-as-Cut | $71,120 | — | — | — | $71,120 | ||||||||||||||||||||||||
Stumpage Lump Sum | 9,093 | 10,628 | — | — | 19,721 | ||||||||||||||||||||||||
Stumpage Agreed Volume | — | 1,234 | — | — | 1,234 | ||||||||||||||||||||||||
Total Stumpage | 80,213 | 11,862 | — | — | 92,075 | ||||||||||||||||||||||||
Delivered Wood (Domestic) | 42,426 | 76,857 | 84,221 | 6,044 | 209,548 | ||||||||||||||||||||||||
Delivered Wood (Export) | — | — | 138,234 | 145,162 | 283,396 | ||||||||||||||||||||||||
Total Delivered | 42,426 | 76,857 | 222,455 | 151,206 | 492,944 | ||||||||||||||||||||||||
Total Timber Sales | $122,639 | $88,719 | $222,455 | $151,206 | $585,019 |
2019 | 2018 | ||||||||||||||||||||||
Cost | Acres | Cost | Acres | ||||||||||||||||||||
Florida | $71,183 | 42,522 | $35,560 | 20,513 | |||||||||||||||||||
Georgia | 13,395 | 10,271 | 2,532 | 2,232 | |||||||||||||||||||
Texas | 14,349 | 6,643 | 7,851 | 3,279 | |||||||||||||||||||
Washington | 7,340 | 2,260 | — | — | |||||||||||||||||||
New Zealand | 36,020 | 9,223 | 11,665 | 3,833 | |||||||||||||||||||
Total Acquisitions | $142,287 | 70,919 | $57,608 | 29,857 |
Year of Expiration | ||||||||||||||||||||||||||||||||||||||||||||
Lease obligations | Total | 2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | |||||||||||||||||||||||||||||||||||||
Operating lease liabilities | $193,320 | $10,028 | $9,293 | $8,413 | $8,355 | $8,281 | $148,950 | |||||||||||||||||||||||||||||||||||||
Total Undiscounted Cash Flows | $193,320 | $10,028 | $9,293 | $8,413 | $8,355 | $8,281 | $148,950 | |||||||||||||||||||||||||||||||||||||
Imputed interest | (92,796) | |||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2019 | 100,524 | |||||||||||||||||||||||||||||||||||||||||||
Less: Current portion | (10,043) | |||||||||||||||||||||||||||||||||||||||||||
Non-current portion at December 31, 2019 | $90,481 |
Year Ended December 31, | |||||||||||
Lease Cost Components | 2019 | ||||||||||
Operating lease cost | $10,870 | ||||||||||
Variable lease cost (a) | 235 | ||||||||||
Total lease cost (b) | $11,105 |
Year Ended December 31, | |||||||||||
Supplemental cash flow information related to leases: | 2019 | ||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from operating leases | $2,567 | ||||||||||
Investing cash flows from operating leases | 8,303 | ||||||||||
Total cash flows from operating leases | $10,870 | ||||||||||
Weighted-average remaining lease term in years - operating leases | 28 | ||||||||||
Weighted-average discount rate - operating leases | 5 | % |
Practical Expedient | Description | |||||||
Short-term leases | The Company does not record right-of-use assets or liabilities for short-term leases (a lease that at commencement date has a lease term of 12 months or less and does not contain a purchase option that is reasonably certain to be exercised). | |||||||
Separation of lease and non-lease components | The Company does not separate non-lease components from the associated lease components if they have the same timing and pattern of transfer and, if accounted for separately, would both be classified as an operating lease. |
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 |
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) | (22,249) | (20,891) | ||||||||||||||
Total Operating Income | 107,027 | 170,080 | 215,491 | ||||||||||||||
Unallocated interest expense and other | (12,026) | (21,594) | (29,354) | ||||||||||||||
Total Income before Income Taxes | $95,001 | $148,486 | $186,137 |
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 |
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 |
Non-Cash Cost of Land and Improved Development | |||||||||||||||||
2019 | 2018 | 2017 | |||||||||||||||
Real Estate (a) | $12,565 | $23,553 | $23,498 | ||||||||||||||
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 | $83,369 | $138,528 | $2,288,341 | $2,282,117 | |||||||||||||||||||||||||||||||||||||||
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 | $170,080 | $215,491 | $2,860,695 | $2,780,303 |
2019 | 2018 | ||||||||||
Term Credit Agreement due 2024 at a variable interest rate of 3.3% at December 31, 2019 | $350,000 | $350,000 | |||||||||
Incremental Term Loan Agreement due 2026 at a variable interest rate of 3.6% at December 31, 2019 | 300,000 | 300,000 | |||||||||
Revolving Credit Facility due 2020 at a variable interest rate of 3.0% at December 31, 2019 | 82,000 | — | |||||||||
Total debt | 732,000 | 650,000 | |||||||||
Less: Current maturities of long-term debt | (82,000) | — | |||||||||
Less: Deferred financing costs | (1,042) | (1,236) | |||||||||
Long-term debt, net of deferred financing costs | $648,958 | $648,764 |
2020 | 82,000 | ||||
2021 | — | ||||
2022 | — | ||||
2023 | — | ||||
2024 | 350,000 | ||||
Thereafter | 300,000 | ||||
Total debt | $732,000 |
Higher and Better Use Timberlands and Real Estate Development Investments | |||||||||||||||||
Land and Timber | Development Investments | Total | |||||||||||||||
Non-current portion at December 31, 2018 | $59,189 | $26,420 | $85,609 | ||||||||||||||
Plus: Current portion (a) | 4,239 | 7,680 | 11,919 | ||||||||||||||
Total Balance at December 31, 2018 | 63,428 | 34,100 | 97,528 | ||||||||||||||
Non-cash cost of land and improved development | (1,916) | (4,814) | (6,730) | ||||||||||||||
Timber depletion from harvesting activities and basis of timber sold in real estate sales | (2,866) | — | (2,866) | ||||||||||||||
Capitalized real estate development investments (b) | — | 6,803 | 6,803 | ||||||||||||||
Capital expenditures (silviculture) | 204 | — | 204 | ||||||||||||||
Intersegment transfers | (485) | — | (485) | ||||||||||||||
Total Balance at December 31, 2019 | 58,365 | 36,089 | 94,454 | ||||||||||||||
Less: Current portion (a) | (274) | (12,389) | (12,663) | ||||||||||||||
Non-current portion at December 31, 2019 | $58,091 | $23,700 | $81,791 |
Development Projects (a) | Pension Contributions (b) | Commitments (c) | Total | ||||||||||||||||||||
2020 | $4,403 | $3,599 | $2,510 | $10,512 | |||||||||||||||||||
2021 | 178 | 681 | 2,122 | 2,981 | |||||||||||||||||||
2022 | 178 | — | 2,027 | 2,205 | |||||||||||||||||||
2023 | 178 | — | 2,007 | 2,185 | |||||||||||||||||||
2024 | 178 | — | 1,171 | 1,349 | |||||||||||||||||||
Thereafter | 2,749 | — | — | 2,749 | |||||||||||||||||||
$7,864 | $4,280 | $9,837 | $21,981 |
2019 | 2018 | 2017 | |||||||||||||||
Current | |||||||||||||||||
U.S. federal | $2 | $2 | $261 | ||||||||||||||
State | (122) | 37 | (38) | ||||||||||||||
Foreign | (1,542) | (1,914) | (245) | ||||||||||||||
(1,662) | (1,875) | (22) | |||||||||||||||
Deferred | |||||||||||||||||
U.S. federal | 465 | 3,803 | 13,028 | ||||||||||||||
State | 17 | 146 | — | ||||||||||||||
Foreign | (11,278) | (23,360) | (21,659) | ||||||||||||||
(10,796) | (19,411) | (8,631) | |||||||||||||||
Changes in valuation allowance | (482) | (3,950) | (13,028) | ||||||||||||||
Total | ($12,940) | ($25,236) | ($21,681) |
2019 | 2018 | 2017 | ||||||||||||||||||||||||||||||||||||
U.S. federal statutory income tax rate | ($19,950) | (21.0) | % | ($31,182) | (21.0) | % | ($65,148) | (35.0) | % | |||||||||||||||||||||||||||||
U.S. and foreign REIT income | 22,922 | 24.1 | 34,192 | 23.0 | 64,820 | 34.8 | ||||||||||||||||||||||||||||||||
Matariki Group and Rayonier New Zealand Ltd | (11,181) | (11.8) | (23,166) | (15.6) | (19,182) | (10.3) | ||||||||||||||||||||||||||||||||
Transition tax | — | — | — | — | (3,506) | (1.9) | ||||||||||||||||||||||||||||||||
Change in valuation allowance | (482) | (0.5) | (3,950) | (2.7) | (13,028) | (7.0) | ||||||||||||||||||||||||||||||||
ASU No. 2016-16 adoption impact | — | — | — | — | 16,631 | 8.9 | ||||||||||||||||||||||||||||||||
Deemed repatriation of unremitted foreign earnings | — | — | — | — | 7,368 | 4.0 | ||||||||||||||||||||||||||||||||
Reduction of deferred tax asset for statutory rate change | — | — | — | — | (10,499) | (5.6) | ||||||||||||||||||||||||||||||||
Internal transfer of assets deferred | (1,815) | (1.9) | — | — | — | — | ||||||||||||||||||||||||||||||||
Foreign income tax withholding | (1,535) | (1.6) | (1,848) | (1.2) | — | — | ||||||||||||||||||||||||||||||||
Other | (899) | (0.9) | 718 | 0.5 | 863 | 0.5 | ||||||||||||||||||||||||||||||||
Income tax expense as reported for net income | ($12,940) | (13.6) | % | ($25,236) | (17.0) | % | ($21,681) | (11.6) | % |
2019 | 2018 | ||||||||||
Gross deferred tax assets: | |||||||||||
Pension, postretirement and other employee benefits | $1,512 | $1,791 | |||||||||
New Zealand subsidiary | 23,211 | 14,252 | |||||||||
CBPC tax credit carry forwards | 14,555 | 14,555 | |||||||||
Capitalized real estate costs | 6,635 | 7,386 | |||||||||
U.S. TRS net operating loss | 5,410 | 5,747 | |||||||||
Land basis difference | 10,626 | 11,282 | |||||||||
Other | 4,356 | 4,047 | |||||||||
Total gross deferred tax assets | 66,305 | 59,060 | |||||||||
Less: Valuation allowance | (39,320) | (38,839) | |||||||||
Total deferred tax assets after valuation allowance | $26,985 | $20,221 | |||||||||
Gross deferred tax liabilities: | |||||||||||
Accelerated depreciation | (23) | (73) | |||||||||
New Zealand subsidiary | (87,548) | (66,430) | |||||||||
Timber installment sale | — | (4,823) | |||||||||
Other | (3,938) | (1,272) | |||||||||
Total gross deferred tax liabilities | (91,509) | (72,598) | |||||||||
Net deferred tax liability reported as noncurrent | ($64,524) | ($52,377) |
Gross Amount | Valuation Allowance | Expiration | |||||||||||||||
2019 | |||||||||||||||||
New Zealand subsidiary NOL carryforwards | $11,650 | — | None | ||||||||||||||
U.S. net deferred tax asset | 24,765 | (24,765) | None | ||||||||||||||
Cellulosic Biofuel Producer Credit (a) | 14,555 | (14,555) | 2023 | ||||||||||||||
Total Valuation Allowance | ($39,320) | ||||||||||||||||
2018 | |||||||||||||||||
New Zealand subsidiary NOL carryforwards | $31,052 | — | None | ||||||||||||||
U.S. net deferred tax asset | 24,284 | (24,284) | None | ||||||||||||||
Cellulosic Biofuel Producer Credit (a) | 14,555 | (14,555) | 2019 | ||||||||||||||
Total Valuation Allowance | ($38,839) |
2019 | 2018 | 2017 | |||||||||||||||
Balance at January 1, | — | — | $135 | ||||||||||||||
Decreases related to prior year tax positions (a) | — | — | (135) | ||||||||||||||
Increases related to prior year tax positions | — | — | — | ||||||||||||||
Balance at December 31, | — | — | — |
Taxing Jurisdiction | Open Tax Years | ||||
U.S. Internal Revenue Service | 2016 - 2018 | ||||
New Zealand Inland Revenue | 2014 - 2018 |
Financial Commitments (a) | Maximum Potential Payment | ||||
Standby letters of credit (b) | $1,509 | ||||
Surety bonds (c) | 3,487 | ||||
Senior Notes due 2022 (d) | $325,000 | ||||
Total financial commitments | $329,996 |
Outstanding Interest Rate Swaps (a) | ||||||||||||||||||||
Date Entered Into | Term | Notional Amount | Related Debt Facility | Fixed Rate of Swap | Bank Margin on Debt | Total Effective Interest Rate (b) | ||||||||||||||
August 2015 | 9 years | $170,000 | Term Credit Agreement | 2.20 | % | 1.63 | % | 3.83 | % | |||||||||||
August 2015 | 9 years | 180,000 | Term Credit Agreement | 2.35 | % | 1.63 | % | 3.98 | % | |||||||||||
April 2016 | 10 years | 100,000 | Incremental Term Loan | 1.60 | % | 1.90 | % | 3.50 | % | |||||||||||
April 2016 | 10 years | 100,000 | Incremental Term Loan | 1.60 | % | 1.90 | % | 3.50 | % | |||||||||||
July 2016 | 10 years | 100,000 | Incremental Term Loan | 1.26 | % | 1.90 | % | 3.16 | % |
Location on Statement of Income and Comprehensive Income | 2019 | 2018 | 2017 | ||||||||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||||||||
Foreign currency exchange contracts | Other comprehensive (loss) income | $2,211 | ($4,357) | $2,100 | |||||||||||||||||||
Foreign currency option contracts | Other comprehensive (loss) income | 159 | (180) | (52) | |||||||||||||||||||
Interest rate swaps | Other comprehensive (loss) income | (32,189) | 8,296 | 4,214 | |||||||||||||||||||
Derivatives designated as a net investment hedge: | |||||||||||||||||||||||
Foreign currency exchange contract | Other comprehensive (loss) income | — | (344) | — | |||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Foreign currency exchange contracts | Interest and other miscellaneous income, net | $135 | $2,183 | $47 | |||||||||||||||||||
Carbon options | Interest and other miscellaneous income, net | (105) | (158) | — | |||||||||||||||||||
Notional Amount | |||||||||||
2019 | 2018 | ||||||||||
Derivatives designated as cash flow hedges: | |||||||||||
Foreign currency exchange contracts | $56,350 | $69,950 | |||||||||
Foreign currency option contracts | 22,000 | 24,000 | |||||||||
Interest rate swaps | 650,000 | 650,000 | |||||||||
Derivatives not designated as hedging instruments: | |||||||||||
Foreign currency exchange contracts | — | 9,396 | |||||||||
Carbon options (a) | 9,592 | 2,517 |
Fair Value Assets (Liabilities) (a) | |||||||||||||||||
Location on Balance Sheet | 2019 | 2018 | |||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||
Foreign currency exchange contracts | Other current assets | 424 | — | ||||||||||||||
Other assets | 390 | — | |||||||||||||||
Other current liabilities | (172) | (1,569) | |||||||||||||||
Foreign currency option contracts | Other current assets | 151 | 217 | ||||||||||||||
Other assets | 209 | 102 | |||||||||||||||
Other current liabilities | (27) | (106) | |||||||||||||||
Other non-current liabilities | (30) | (68) | |||||||||||||||
Interest rate swaps | Other assets | 2,614 | 23,735 | ||||||||||||||
Other non-current liabilities | (11,068) | — | |||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Foreign currency exchange contracts | Other current assets | — | 152 | ||||||||||||||
Other current liabilities | — | (24) | |||||||||||||||
Carbon options (a) | Other current liabilities | (607) | (322) | ||||||||||||||
Total derivative contracts: | |||||||||||||||||
Other current assets | $575 | $369 | |||||||||||||||
Other assets | 3,213 | 23,837 | |||||||||||||||
Total derivative assets | $3,788 | $24,206 | |||||||||||||||
Other current liabilities | (806) | (2,021) | |||||||||||||||
Other non-current liabilities | (11,098) | (68) | |||||||||||||||
Total derivative liabilities | ($11,904) | ($2,089) |
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||||||
Asset (liability) (a) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 1 | Level 2 | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $68,434 | $68,434 | — | $148,013 | $148,013 | — | |||||||||||||||||||||||||||||
Restricted cash (b) | 1,233 | 1,233 | — | 8,080 | 8,080 | — | |||||||||||||||||||||||||||||
Current maturities of long-term debt | (82,000) | — | (82,000) | — | — | — | |||||||||||||||||||||||||||||
Long-term debt (c) | (648,958) | — | (650,000) | (648,764) | — | (650,000) | |||||||||||||||||||||||||||||
Interest rate swaps (d) | (8,454) | — | (8,454) | 23,735 | — | 23,735 | |||||||||||||||||||||||||||||
Foreign currency exchange contracts (d) | 642 | — | 642 | (1,442) | — | (1,442) | |||||||||||||||||||||||||||||
Foreign currency option contracts (d) | 303 | — | 303 | 145 | — | 145 | |||||||||||||||||||||||||||||
Carbon options contracts (d) | (607) | — | (607) | (322) | — | (322) | |||||||||||||||||||||||||||||
Marketable equity securities (e) | 10,582 | 10,582 | — | — | — | — |
December 31, 2019 | December 31, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amount | Less than 12 Months | 12 Months or Greater | Total | Carrying Amount | Less than 12 Months | 12 Months or Greater | Total | ||||||||||||||||||||||||||||||||||||||||
Fair value of marketable equity securities | $10,582 | $10,582 | — | $10,582 | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Unrealized gains | — | 3,043 | — | 3,043 | — | — | — | — |
Pension | Postretirement | ||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Change in Projected Benefit Obligation | |||||||||||||||||||||||
Projected benefit obligation at beginning of year | $79,559 | $87,986 | $1,303 | $1,420 | |||||||||||||||||||
Service cost | — | — | 6 | 7 | |||||||||||||||||||
Interest cost | 3,197 | 3,021 | 54 | 38 | |||||||||||||||||||
Actuarial loss (gain) | 10,828 | (8,160) | 285 | (149) | |||||||||||||||||||
Benefits paid | (3,323) | (3,288) | (14) | (13) | |||||||||||||||||||
Projected benefit obligation at end of year | $90,261 | $79,559 | $1,634 | $1,303 |
Change in Plan Assets | |||||||||||||||||||||||
Fair value of plan assets at beginning of year | $50,949 | $57,377 | — | — | |||||||||||||||||||
Actual return on plan assets | 12,975 | (4,638) | — | — | |||||||||||||||||||
Employer contributions | 6,413 | 2,829 | 14 | 13 | |||||||||||||||||||
Benefits paid | (3,284) | (4,002) | (14) | (13) | |||||||||||||||||||
Other expense | (593) | (617) | — | — | |||||||||||||||||||
Fair value of plan assets at end of year | $66,460 | $50,949 | — | — |
Funded Status at End of Year: | |||||||||||||||||||||||
Net accrued benefit cost | ($23,801) | ($28,610) | ($1,634) | ($1,303) |
Amounts Recognized in the Consolidated | |||||||||||||||||||||||
Balance Sheets Consist of: | |||||||||||||||||||||||
Current liabilities | ($86) | ($86) | ($38) | ($27) | |||||||||||||||||||
Noncurrent liabilities | (23,715) | (28,524) | (1,596) | (1,276) | |||||||||||||||||||
Net amount recognized | ($23,801) | ($28,610) | ($1,634) | ($1,303) |
Pension | Postretirement | ||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | 2017 | ||||||||||||||||||||||||||||||
Net (losses) gains | ($1,514) | ($1,743) | ($583) | ($285) | $149 | ($89) | |||||||||||||||||||||||||||||
Pension | Postretirement | ||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | 2017 | ||||||||||||||||||||||||||||||
Amortization of losses (gains) | $449 | $673 | $466 | — | $2 | ($1) | |||||||||||||||||||||||||||||
Pension | Postretirement | ||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
Net losses | ($24,317) | ($23,252) | ($292) | ($7) | |||||||||||||||||||
Deferred income tax benefit | 1,216 | 1,216 | 6 | 6 | |||||||||||||||||||
AOCI | ($23,101) | ($22,036) | ($286) | ($1) |
2019 | 2018 | ||||||||||
Projected benefit obligation | $90,261 | $79,559 | |||||||||
Accumulated benefit obligation | 90,261 | 79,559 | |||||||||
Fair value of plan assets | 66,460 | 50,949 |
Pension | Postretirement | ||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | 2017 | ||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost (Credit) | |||||||||||||||||||||||||||||||||||
Service cost | — | — | — | $6 | $7 | $6 | |||||||||||||||||||||||||||||
Interest cost | 3,197 | 3,021 | 3,259 | 54 | 38 | 53 | |||||||||||||||||||||||||||||
Expected return on plan assets | (3,107) | (3,934) | (3,781) | — | — | — | |||||||||||||||||||||||||||||
Amortization of losses (gains) | 449 | 673 | 466 | — | 2 | (1) | |||||||||||||||||||||||||||||
Net periodic benefit cost (credit) | $539 | ($240) | ($56) | $60 | $47 | $58 |
Pension | Postretirement | ||||||||||
Amortization of loss | $861 | $8 | |||||||||
Pension | Postretirement | ||||||||||||||||||||||||||||||||||
2019 | 2018 | 2017 | 2019 | 2018 | 2017 | ||||||||||||||||||||||||||||||
Assumptions used to determine benefit obligations at December 31: | |||||||||||||||||||||||||||||||||||
Discount rate | 3.06 | % | 4.11 | % | 3.48 | % | 3.16 | % | 4.18 | % | 3.56 | % | |||||||||||||||||||||||
Rate of compensation increase | — | — | — | 4.50 | % | 4.50 | % | 4.50 | % | ||||||||||||||||||||||||||
Assumptions used to determine net periodic benefit cost for years ended December 31: | |||||||||||||||||||||||||||||||||||
Discount rate | 4.11 | % | 3.48 | % | 4.01 | % | 4.18 | % | 3.56 | % | 4.12 | % | |||||||||||||||||||||||
Expected long-term return on plan assets | 5.72 | % | 7.17 | % | 7.17 | % | — | — | — | ||||||||||||||||||||||||||
Rate of compensation increase | — | — | — | 4.50 | % | 4.50 | % | 4.50 | % |
Percentage of Plan Assets | Target Allocation Range | ||||||||||||||||
Asset Category | 2019 | 2018 | |||||||||||||||
Domestic equity securities | 41 | % | 39 | % | 35-45% | ||||||||||||
International equity securities | 28 | % | 28 | % | 20-30% | ||||||||||||
Domestic fixed income securities | 25 | % | 26 | % | 25-29% | ||||||||||||
International fixed income securities | 4 | % | 5 | % | 3-7% | ||||||||||||
Real estate fund | 2 | % | 2 | % | 2-4% | ||||||||||||
Total | 100 | % | 100 | % |
December 31, 2019 | December 31, 2018 | ||||||||||
Asset Category | |||||||||||
Investments at Net Asset Value: | |||||||||||
Separate Investment Accounts | 66,460 | 50,949 | |||||||||
Total Investments at Net Asset Value | $66,460 | $50,949 |
Pension Benefits | Postretirement Benefits | ||||||||||
2020 | $3,671 | $38 | |||||||||
2021 | 3,829 | 42 | |||||||||
2022 | 4,050 | 45 | |||||||||
2023 | 4,146 | 48 | |||||||||
2024 | 4,318 | 51 | |||||||||
2025-2029 | 22,752 | 308 |
2019 | 2018 | 2017 | |||||||||||||||
Selling and general expenses | $6,416 | $5,623 | $4,784 | ||||||||||||||
Cost of sales | 378 | 704 | 556 | ||||||||||||||
Timber and Timberlands, net (a) | 110 | 101 | 56 | ||||||||||||||
Total stock-based compensation | $6,904 | $6,428 | $5,396 | ||||||||||||||
Tax benefit recognized related to stock-based compensation expense (b) | $362 | $338 | $249 |
2019 | 2018 | 2017 | |||||||||||||||
Restricted shares granted | — | 87,924 | 97,643 | ||||||||||||||
Weighted average price of restricted shares granted | — | $35.44 | $28.18 | ||||||||||||||
Intrinsic value of restricted stock outstanding (a) | $5,540 | $8,792 | $8,906 | ||||||||||||||
Grant date fair value of restricted stock vested | 4,579 | 1,582 | 1,198 | ||||||||||||||
Cash used to purchase common shares from current and former employees to pay minimum withholding tax requirements on restricted shares vested | 1,610 | 334 | 176 |
2019 | |||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | ||||||||||
Non-vested Restricted Shares at January 1, | 317,499 | $30.64 | |||||||||
Granted | — | — | |||||||||
Vested | (142,778) | 32.07 | |||||||||
Cancelled | (5,607) | 29.99 | |||||||||
Non-vested Restricted Shares at December 31, | 169,114 | $29.45 |
2019 | 2018 | 2017 | |||||||||||||||
Restricted stock units granted | 128,226 | — | — | ||||||||||||||
Weighted average price of restricted stock units granted | $31.39 | — | — | ||||||||||||||
Intrinsic value of restricted stock units outstanding (a) | 3,351 | — | — | ||||||||||||||
Grant date fair value of restricted stock units vested | 762 | — | — | ||||||||||||||
Cash used to purchase common shares from current and former employees to pay minimum withholding tax requirements on restricted stock units vested | $1 | — | — |
2019 | |||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | ||||||||||
Non-vested Restricted Stock Units at January 1, | — | — | |||||||||
Granted | 128,226 | 31.39 | |||||||||
Vested | (24,664) | 30.90 | |||||||||
Cancelled | (1,265) | 31.77 | |||||||||
Non-vested Restricted Stock Units at December 31, | 102,297 | $31.50 |
2019 | 2018 | 2017 | |||||||||||||||
Common shares reserved for performance shares granted during year | 232,684 | 213,154 | 226,448 | ||||||||||||||
Weighted average fair value of performance share units granted | $35.99 | $40.27 | $32.17 | ||||||||||||||
Intrinsic value of outstanding performance share units (a) | 10,758 | 9,229 | 10,414 | ||||||||||||||
Fair value of performance shares vested | 6,387 | 5,670 | — | ||||||||||||||
Cash used to purchase common shares from current and former employees to pay minimum withholding tax requirements on performance shares vested | 2,639 | 2,651 | — |
2019 | |||||||||||
Number of Units | Weighted Average Grant Date Fair Value | ||||||||||
Outstanding Performance Share units at January 1, | 333,282 | $33.60 | |||||||||
Granted | 116,342 | 35.99 | |||||||||
Units Distributed | (114,563) | 28.78 | |||||||||
Other Cancellations/Adjustments | (6,675) | 36.61 | |||||||||
Outstanding Performance Share units at December 31, | 328,386 | $36.06 |
2019 | 2018 | 2017 | |||||||||||||||
Expected volatility | 18.4 | % | 20.8 | % | 23.3 | % | |||||||||||
Risk-free rate | 2.3 | % | 2.4 | % | 1.5 | % |
2019 | 2018 | 2017 | |||||||||||||||
(Loss) gain on foreign currency remeasurement, net of cash flow hedges | ($3,077) | $370 | $3,044 | ||||||||||||||
Gain (loss) on sale or disposal of property plant & equipment | 56 | 7 | (68) | ||||||||||||||
Income from sale of unused Internet Protocol addresses | — | 646 | — | ||||||||||||||
Log trading marketing fees | 314 | 286 | 1,222 | ||||||||||||||
Income from New Zealand Timber settlement | — | — | 420 | ||||||||||||||
Miscellaneous expense, net | (1,826) | (157) | (225) | ||||||||||||||
Total | ($4,533) | $1,152 | $4,393 |
2019 | 2018 | ||||||||||
Finished goods inventory | |||||||||||
Real estate inventory (a) | $12,663 | $11,919 | |||||||||
Log inventory | 1,855 | 3,784 | |||||||||
Total inventory | $14,518 | $15,703 |
2019 | 2018 | ||||||||||
Restricted cash deposited with LKE intermediary | $758 | $7,530 | |||||||||
Restricted cash held in escrow | 475 | 550 | |||||||||
Total restricted cash shown in the Consolidated Balance Sheets | 1,233 | 8,080 | |||||||||
Cash and cash equivalents | 68,434 | 148,013 | |||||||||
Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows | $69,667 | $156,093 |
2019 | 2018 | ||||||||||
Balance, January 1 (net of $0 of accumulated impairment) | $8,307 | $8,776 | |||||||||
Changes to carrying amount | |||||||||||
Acquisitions | — | — | |||||||||
Impairment | — | — | |||||||||
Foreign currency adjustment | 304 | (469) | |||||||||
Balance, December 31 (net of $0 of accumulated impairment) | $8,611 | $8,307 |
2019 | 2018 | ||||||||||
Long-term and prepaid and secondary roads | |||||||||||
Pacific Northwest long-term prepaid roads | $4,198 | $4,000 | |||||||||
New Zealand long-term secondary roads | 4,265 | 3,072 | |||||||||
Total long-term prepaid and secondary roads | $8,463 | $7,072 |
2019 | 2018 | ||||||||||
Deferred financing costs related to revolving debt | $102 | $213 | |||||||||
2019 | 2018 | ||||||||||
Capitalized software costs | $3,605 | $3,776 | |||||||||
2019 | 2018 | ||||||||||
Investments in marketable equity securities | $10,582 | — | |||||||||
Foreign currency translation gains/(losses) | Net investment hedges of New Zealand JV | Cash flow hedges | Employee benefit plans | Total | |||||||||||||||||||||||||
Balance as of December 31, 2017 | $15,975 | $1,665 | $16,184 | ($20,407) | $13,417 | ||||||||||||||||||||||||
Other comprehensive (loss) income before reclassifications | (16,985) | (344) | 5,944 | (1,594) | (12,979) | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | — | — | (163) | (36) | (199) | ||||||||||||||||||||||||
Net other comprehensive (loss) income | (16,985) | (344) | 5,781 | (1,630) | (13,178) | ||||||||||||||||||||||||
Balance as of December 31, 2018 | ($1,010) | $1,321 | $21,965 | ($22,037) | $239 | ||||||||||||||||||||||||
Other comprehensive (loss) income before reclassifications | 784 | — | (31,547) | (a) | (1,799) | (32,562) | |||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | — | — | 672 | 449 | (b) | 1,121 | |||||||||||||||||||||||
Net other comprehensive (loss) income | 784 | — | (30,875) | (1,350) | (31,441) | ||||||||||||||||||||||||
Balance as of December 31, 2019 | ($226) | $1,321 | ($8,910) | ($23,387) | ($31,202) |
Details about accumulated other comprehensive (loss) income components | Amount reclassified from accumulated other comprehensive (loss) income | Affected line item in the income statement | ||||||||||||||||||
2019 | 2018 | |||||||||||||||||||
Realized (gain) loss on foreign currency exchange contracts | $1,246 | ($121) | Other operating income, net | |||||||||||||||||
Realized (gain) loss on foreign currency option contracts | (33) | (173) | Other operating income, net | |||||||||||||||||
Noncontrolling interest | (279) | 68 | Comprehensive income (loss) attributable to noncontrolling interest | |||||||||||||||||
Income tax expense (benefit) from foreign currency contracts | (262) | 63 | Income tax expense (Note 10) | |||||||||||||||||
Net (gain) loss on cash flow hedges reclassified from accumulated other comprehensive income | $672 | ($163) |
Description | Balance at Beginning of Year | Additions Charged to Cost and Expenses | Deductions | Balance at End of Year | |||||||||||||||||||
Allowance for doubtful accounts: | |||||||||||||||||||||||
Year ended December 31, 2019 | $8 | 16 | — | $24 | |||||||||||||||||||
Year ended December 31, 2018 | 23 | — | (15) | 8 | |||||||||||||||||||
Year ended December 31, 2017 | 33 | — | (10) | 23 | |||||||||||||||||||
Deferred tax asset valuation allowance: | |||||||||||||||||||||||
Year ended December 31, 2019 | $38,839 | 481 | (a) | — | $39,320 | ||||||||||||||||||
Year ended December 31, 2018 | 34,889 | 3,950 | (a) | — | 38,839 | ||||||||||||||||||
Year ended December 31, 2017 | 21,861 | 13,028 | (a) | — | 34,889 |
Page | |||||||||||
Consolidated Financial Statements (Unaudited) | |||||||||||
Three Months Ended March 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
SALES (NOTE 2) | $259,130 | $191,546 | ||||||||||||
Costs and Expenses | ||||||||||||||
Cost of sales | (209,499) | (143,251) | ||||||||||||
Selling and general expenses | (9,968) | (9,810) | ||||||||||||
Other operating (expense) income, net (Note 15) | (1,111) | 35 | ||||||||||||
(220,578) | (153,026) | |||||||||||||
OPERATING INCOME | 38,552 | 38,520 | ||||||||||||
Interest expense | (5,077) | (4,571) | ||||||||||||
Interest and other miscellaneous income, net | 248 | 1,789 | ||||||||||||
INCOME BEFORE INCOME TAXES | 33,723 | 35,738 | ||||||||||||
Income tax expense (Note 9) | (3,706) | (4,349) | ||||||||||||
NET INCOME | 30,017 | 31,389 | ||||||||||||
Less: Net income attributable to noncontrolling interest | (567) | (2,999) | ||||||||||||
NET INCOME ATTRIBUTABLE TO RAYONIER OPERATING COMPANY | 29,450 | 28,390 | ||||||||||||
OTHER COMPREHENSIVE (LOSS) INCOME | ||||||||||||||
Foreign currency translation adjustment, net of income tax effect of $0, and $0 | (44,023) | 6,033 | ||||||||||||
Cash flow hedges, net of income tax effect of $1,857 and $335 | (83,475) | (10,686) | ||||||||||||
Amortization of pension and postretirement plans, net of income tax expense of $0 and $0 | 217 | 112 | ||||||||||||
Total other comprehensive loss | (127,281) | (4,541) | ||||||||||||
COMPREHENSIVE (LOSS) INCOME | (97,264) | 26,848 | ||||||||||||
Less: Comprehensive loss (income) attributable to noncontrolling interest | 10,661 | (4,551) | ||||||||||||
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER OPERATING COMPANY | ($86,603) | $22,297 | ||||||||||||
March 31, 2020 | December 31, 2019 | ||||||||||
ASSETS | |||||||||||
CURRENT ASSETS | |||||||||||
Cash and cash equivalents | $126,260 | $68,434 | |||||||||
Accounts receivable, less allowance for doubtful accounts of $25 and $24 | 28,295 | 27,127 | |||||||||
Inventory (Note 16) | 13,093 | 14,518 | |||||||||
Prepaid expenses | 14,941 | 14,728 | |||||||||
Other current assets | 384 | 867 | |||||||||
Total current assets | 182,973 | 125,674 | |||||||||
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 2,355,581 | 2,482,047 | |||||||||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (NOTE 7) | 88,833 | 81,791 | |||||||||
PROPERTY, PLANT AND EQUIPMENT | |||||||||||
Land | 4,131 | 4,131 | |||||||||
Buildings | 22,933 | 23,095 | |||||||||
Machinery and equipment | 4,346 | 4,339 | |||||||||
Construction in progress | 349 | 348 | |||||||||
Total property, plant and equipment, gross | 31,759 | 31,913 | |||||||||
Less — accumulated depreciation | (9,950) | (9,662) | |||||||||
Total property, plant and equipment, net | 21,809 | 22,251 | |||||||||
RESTRICTED CASH (NOTE 17) | 475 | 1,233 | |||||||||
RIGHT-OF-USE ASSETS (NOTE 3) | 91,953 | 99,942 | |||||||||
OTHER ASSETS | 40,022 | 47,757 | |||||||||
TOTAL ASSETS | $2,781,646 | $2,860,695 | |||||||||
LIABILITIES AND MEMBER’S EQUITY | |||||||||||
CURRENT LIABILITIES | |||||||||||
Accounts payable | $20,837 | $18,160 | |||||||||
Current maturities of long-term debt (Note 6) | — | 82,000 | |||||||||
Accrued taxes | 3,416 | 3,032 | |||||||||
Accrued payroll and benefits | 3,802 | 8,869 | |||||||||
Accrued interest | 1,946 | 2,162 | |||||||||
Deferred revenue | 6,718 | 11,440 | |||||||||
Other current liabilities | 26,459 | 22,480 | |||||||||
Total current liabilities | 63,178 | 148,143 | |||||||||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS (NOTE 6) | 731,007 | 648,958 | |||||||||
PENSION AND OTHER POSTRETIREMENT BENEFITS (NOTE 14) | 24,658 | 25,311 | |||||||||
LONG-TERM LEASE LIABILITY (NOTE 3) | 83,358 | 90,481 | |||||||||
OTHER NON-CURRENT LIABILITIES | 155,522 | 83,247 | |||||||||
MEMBER’S EQUITY | |||||||||||
Equity | 1,784,903 | 1,798,096 | |||||||||
Accumulated other comprehensive loss (Note 18) | (147,255) | (31,202) | |||||||||
TOTAL CONTROLLING INTEREST MEMBER’S EQUITY | 1,637,648 | 1,766,894 | |||||||||
Noncontrolling interest | 86,275 | 97,661 | |||||||||
TOTAL MEMBER’S EQUITY | 1,723,923 | 1,864,555 | |||||||||
TOTAL LIABILITIES AND MEMBER’S EQUITY | $2,781,646 | $2,860,695 |
Member’s Equity | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest | Total Member’s Equity | |||||||||||||||||||||||
Balance, January 1, 2020 | $1,798,096 | ($31,202) | $97,661 | $1,864,555 | ||||||||||||||||||||||
Net income | 29,450 | — | 567 | 30,017 | ||||||||||||||||||||||
Distributions to Rayonier Inc. | (42,643) | — | — | (42,643) | ||||||||||||||||||||||
Amortization of pension and postretirement plan liabilities | — | 217 | — | 217 | ||||||||||||||||||||||
Foreign currency translation adjustment | — | (33,894) | (10,129) | (44,023) | ||||||||||||||||||||||
Cash flow hedges | — | (82,376) | (1,099) | (83,475) | ||||||||||||||||||||||
Distribution to minority shareholder | — | — | (725) | (725) | ||||||||||||||||||||||
Balance, March 31, 2020 | $1,784,903 | ($147,255) | $86,275 | $1,723,923 | ||||||||||||||||||||||
Member’s Equity | Accumulated Other Comprehensive Income (Loss) | Non-controlling Interest | Total Member’s Equity | |||||||||||||||||||||||
Balance, January 1, 2019 | $1,883,122 | $239 | $97,677 | $1,981,038 | ||||||||||||||||||||||
Net income | 28,390 | — | 2,999 | 31,389 | ||||||||||||||||||||||
Distributions to Rayonier Inc. | (49,694) | — | — | (49,694) | ||||||||||||||||||||||
Amortization of pension and postretirement plan liabilities | — | 112 | — | 112 | ||||||||||||||||||||||
Foreign currency translation adjustment | — | 4,680 | 1,353 | 6,033 | ||||||||||||||||||||||
Cash flow hedges | — | (10,884) | 198 | (10,686) | ||||||||||||||||||||||
Distribution to minority shareholder | — | — | (3,594) | (3,594) | ||||||||||||||||||||||
Balance, March 31, 2019 | $1,861,818 | ($5,853) | $98,633 | $1,954,598 | ||||||||||||||||||||||
Three Months Ended March 31, | |||||||||||
2020 | 2019 | ||||||||||
OPERATING ACTIVITIES | |||||||||||
Net income | $30,017 | $31,389 | |||||||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||||
Depreciation, depletion and amortization | 34,329 | 36,491 | |||||||||
Non-cash cost of land and improved development | 412 | 4,030 | |||||||||
Stock-based incentive compensation expense | 1,510 | 1,477 | |||||||||
Deferred income taxes | 3,361 | 3,705 | |||||||||
Amortization of losses from pension and postretirement plans | 217 | 112 | |||||||||
Gain on sale of large disposition of timberlands | (28,655) | — | |||||||||
Other | (2,571) | (1,648) | |||||||||
Changes in operating assets and liabilities: | |||||||||||
Receivables | (5,316) | (8,195) | |||||||||
Inventories | (3,618) | (1,343) | |||||||||
Accounts payable | 3,353 | 6,389 | |||||||||
All other operating activities | (3,403) | (1,033) | |||||||||
CASH PROVIDED BY OPERATING ACTIVITIES | 29,636 | 71,374 | |||||||||
INVESTING ACTIVITIES | |||||||||||
Capital expenditures | (17,176) | (14,122) | |||||||||
Real estate development investments | (1,727) | (1,677) | |||||||||
Purchase of timberlands | (24,122) | (12,349) | |||||||||
Net proceeds from large disposition of timberlands | 115,666 | — | |||||||||
Other | 2,070 | 2,337 | |||||||||
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES | 74,711 | (25,811) | |||||||||
FINANCING ACTIVITIES | |||||||||||
Issuance of debt | 20,000 | — | |||||||||
Repayment of debt | (20,000) | — | |||||||||
Distributions to Rayonier Inc. | (44,251) | (51,016) | |||||||||
Distribution to minority shareholder | (725) | (3,594) | |||||||||
CASH USED FOR FINANCING ACTIVITIES | (44,976) | (54,610) | |||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (2,303) | 843 | |||||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||||||||||
Change in cash, cash equivalents and restricted cash | 57,068 | (8,204) | |||||||||
Balance, beginning of year | 69,667 | 156,093 | |||||||||
Balance, end of period | $126,735 | $147,889 | |||||||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||||||||||
Cash paid during the period: | |||||||||||
Interest (a) | $2,595 | $2,120 | |||||||||
Income taxes | 185 | 631 | |||||||||
Non-cash investing activity: | |||||||||||
Capital assets purchased on account | 4,215 | 3,354 | |||||||||
Three Months Ended March 31, | |||||||||||
2020 | 2019 | ||||||||||
Revenue recognized from contract liability balance at the beginning of the year (a) | $6,425 | $5,356 |
Three Months Ended | Southern Timber | Pacific Northwest Timber | New Zealand Timber | Real Estate | Trading | Elim. | Total | ||||||||||||||||||||||||||||||||||
March 31, 2020 | |||||||||||||||||||||||||||||||||||||||||
Pulpwood | $27,493 | $3,127 | $4,847 | — | $2,530 | — | $37,997 | ||||||||||||||||||||||||||||||||||
Sawtimber | 19,509 | 27,445 | 30,788 | — | 16,112 | — | 93,854 | ||||||||||||||||||||||||||||||||||
Hardwood | 481 | — | — | — | — | — | 481 | ||||||||||||||||||||||||||||||||||
Total Timber Sales | 47,483 | 30,572 | 35,635 | — | 18,642 | — | 132,332 | ||||||||||||||||||||||||||||||||||
License Revenue, Primarily From Hunting | 4,589 | 97 | 57 | — | — | — | 4,743 | ||||||||||||||||||||||||||||||||||
Other Non-Timber/Carbon Revenue | 910 | 406 | 1,846 | — | — | — | 3,162 | ||||||||||||||||||||||||||||||||||
Agency Fee Income | — | — | — | — | 329 | — | 329 | ||||||||||||||||||||||||||||||||||
Total Non-Timber Sales | 5,499 | 503 | 1,903 | — | 329 | — | 8,234 | ||||||||||||||||||||||||||||||||||
Improved Development | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Unimproved Development | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Rural | — | — | — | 2,397 | — | — | 2,397 | ||||||||||||||||||||||||||||||||||
Timberlands & Non-Strategic | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Other | — | — | — | 140 | — | — | 140 | ||||||||||||||||||||||||||||||||||
Large Dispositions | — | — | — | 116,027 | — | — | 116,027 | ||||||||||||||||||||||||||||||||||
Total Real Estate Sales | — | — | — | 118,564 | — | — | 118,564 | ||||||||||||||||||||||||||||||||||
Revenue from Contracts with Customers | 52,982 | 31,075 | 37,538 | 118,564 | 18,971 | — | 259,130 | ||||||||||||||||||||||||||||||||||
Intersegment | — | — | — | — | 13 | (13) | — | ||||||||||||||||||||||||||||||||||
Total Revenue | $52,982 | $31,075 | $37,538 | $118,564 | $18,984 | ($13) | $259,130 | ||||||||||||||||||||||||||||||||||
March 31, 2019 | |||||||||||||||||||||||||||||||||||||||||
Pulpwood | $26,799 | $2,820 | $8,767 | — | $4,326 | — | $42,712 | ||||||||||||||||||||||||||||||||||
Sawtimber | 23,152 | 17,277 | 45,863 | — | 27,512 | — | 113,804 | ||||||||||||||||||||||||||||||||||
Hardwood | 1,086 | — | — | — | — | — | 1,086 | ||||||||||||||||||||||||||||||||||
Total Timber Sales | 51,037 | 20,097 | 54,630 | — | 31,838 | — | 157,602 | ||||||||||||||||||||||||||||||||||
License Revenue, Primarily from Hunting | 4,026 | 4 | 53 | — | — | — | 4,083 | ||||||||||||||||||||||||||||||||||
Other Non-Timber/Carbon Revenue | 5,783 | 434 | 2,447 | — | — | — | 8,664 | ||||||||||||||||||||||||||||||||||
Agency Fee Income | — | — | — | — | 198 | — | 198 | ||||||||||||||||||||||||||||||||||
Total Non-Timber Sales | 9,809 | 438 | 2,500 | — | 198 | — | 12,945 | ||||||||||||||||||||||||||||||||||
Improved Development | — | — | — | 341 | — | — | 341 | ||||||||||||||||||||||||||||||||||
Unimproved Development | — | — | — | 1,000 | — | — | 1,000 | ||||||||||||||||||||||||||||||||||
Rural | — | — | — | 12,665 | — | — | 12,665 | ||||||||||||||||||||||||||||||||||
Timberlands & Non-Strategic | — | — | — | 6,934 | — | — | 6,934 | ||||||||||||||||||||||||||||||||||
Other | — | — | — | 59 | — | — | 59 | ||||||||||||||||||||||||||||||||||
Total Real Estate Sales | — | — | — | 20,999 | — | — | 20,999 | ||||||||||||||||||||||||||||||||||
Revenue from Contracts with Customers | 60,846 | 20,535 | 57,130 | 20,999 | 32,036 | — | 191,546 | ||||||||||||||||||||||||||||||||||
Intersegment | — | — | — | — | 29 | (29) | — | ||||||||||||||||||||||||||||||||||
Total Revenue | $60,846 | $20,535 | $57,130 | $20,999 | $32,065 | ($29) | $191,546 |
Three Months Ended | Southern Timber | Pacific Northwest Timber | New Zealand Timber | Trading | Total | ||||||||||||||||||||||||
March 31, 2020 | |||||||||||||||||||||||||||||
Stumpage Pay-as-Cut | $25,407 | — | — | — | $25,407 | ||||||||||||||||||||||||
Stumpage Lump Sum | 388 | 5,131 | — | — | 5,519 | ||||||||||||||||||||||||
Total Stumpage | 25,795 | 5,131 | — | — | 30,926 | ||||||||||||||||||||||||
Delivered Wood (Domestic) | 21,060 | 25,441 | 13,691 | 472 | 60,664 | ||||||||||||||||||||||||
Delivered Wood (Export) | 628 | — | 21,944 | 18,170 | 40,742 | ||||||||||||||||||||||||
Total Delivered | 21,688 | 25,441 | 35,635 | 18,642 | 101,406 | ||||||||||||||||||||||||
Total Timber Sales | $47,483 | $30,572 | $35,635 | $18,642 | $132,332 | ||||||||||||||||||||||||
March 31, 2019 | |||||||||||||||||||||||||||||
Stumpage Pay-as-Cut | $28,008 | — | — | — | $28,008 | ||||||||||||||||||||||||
Stumpage Lump Sum | 2,095 | — | — | — | 2,095 | ||||||||||||||||||||||||
Total Stumpage | 30,103 | — | — | — | 30,103 | ||||||||||||||||||||||||
Delivered Wood (Domestic) | 19,338 | 20,097 | 20,700 | 2,124 | 62,259 | ||||||||||||||||||||||||
Delivered Wood (Export) | 1,596 | — | 33,930 | 29,714 | 65,240 | ||||||||||||||||||||||||
Total Delivered | 20,934 | 20,097 | 54,630 | 31,838 | 127,499 | ||||||||||||||||||||||||
Total Timber Sales | $51,037 | $20,097 | $54,630 | $31,838 | $157,602 |
Year of Expiration | ||||||||||||||||||||||||||||||||||||||||||||
Lease obligations | Total | Remaining 2020 | 2021 | 2022 | 2023 | 2024 | Thereafter | |||||||||||||||||||||||||||||||||||||
Operating lease liabilities | $171,497 | $7,274 | $8,700 | $7,852 | $7,799 | $7,667 | $132,205 | |||||||||||||||||||||||||||||||||||||
Total Undiscounted Cash Flows | $171,497 | $7,274 | $8,700 | $7,852 | $7,799 | $7,667 | $132,205 | |||||||||||||||||||||||||||||||||||||
Imputed interest | (78,964) | |||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2020 | 92,533 | |||||||||||||||||||||||||||||||||||||||||||
Less: Current portion | (9,175) | |||||||||||||||||||||||||||||||||||||||||||
Non-current portion at March 31, 2020 | $83,358 |
Three Months Ended March 31, | ||||||||||||||||||||
Lease Cost Components | 2020 | 2019 | ||||||||||||||||||
Operating lease cost | $2,098 | $2,437 | ||||||||||||||||||
Variable lease cost (a) | 78 | 76 | ||||||||||||||||||
Total lease cost (b) | $2,176 | $2,513 |
Three Months Ended March 31, | |||||||||||||||||
Supplemental cash flow information related to leases: | 2020 | 2019 | |||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||
Operating cash flows from operating leases | $741 | $973 | |||||||||||||||
Investing cash flows from operating leases | 1,357 | 1,464 | |||||||||||||||
Total cash flows from operating leases | $2,098 | $2,437 | |||||||||||||||
Weighted-average remaining lease term in years - operating leases | 28 | 29 | |||||||||||||||
Weighted-average discount rate - operating leases | 5 | % | 5 | % |
Practical Expedient | Description | |||||||
Short-term leases | The Company does not record right-of-use assets or lease liabilities for short-term leases (a lease that at commencement date has a lease term of 12 months or less and does not contain a purchase option that is reasonably certain to be exercised). | |||||||
Separation of lease and non-lease components | The Company does not separate non-lease components from the associated lease components if they have the same timing and pattern of transfer and, if accounted for separately, would both be classified as an operating lease. |
Three Months Ended March 31, | |||||||||||
SALES | 2020 | 2019 | |||||||||
Southern Timber | $52,982 | $60,846 | |||||||||
Pacific Northwest Timber | 31,075 | 20,535 | |||||||||
New Zealand Timber | 37,538 | 57,130 | |||||||||
Real Estate (a) | 118,564 | 20,999 | |||||||||
Trading | 18,984 | 32,065 | |||||||||
Intersegment Eliminations | (13) | (29) | |||||||||
Total | $259,130 | $191,546 |
Three Months Ended March 31, | |||||||||||
OPERATING INCOME (LOSS) | 2020 | 2019 | |||||||||
Southern Timber | $15,070 | $21,520 | |||||||||
Pacific Northwest Timber | (948) | (3,741) | |||||||||
New Zealand Timber | 5,448 | 15,720 | |||||||||
Real Estate (a) | 26,774 | 10,027 | |||||||||
Trading | (19) | 480 | |||||||||
Corporate and Other | (7,773) | (5,486) | |||||||||
Total Operating Income | 38,552 | 38,520 | |||||||||
Unallocated interest expense and other | (4,829) | (2,782) | |||||||||
Total Income before Income Taxes | $33,723 | $35,738 |
Three Months Ended March 31, | |||||||||||
DEPRECIATION, DEPLETION AND AMORTIZATION | 2020 | 2019 | |||||||||
Southern Timber | $18,182 | $19,727 | |||||||||
Pacific Northwest Timber | 10,702 | 6,826 | |||||||||
New Zealand Timber | 4,774 | 6,319 | |||||||||
Real Estate (a) | 35,745 | 3,335 | |||||||||
Corporate and Other | 297 | 284 | |||||||||
Total | $69,700 | $36,491 |
Three Months Ended March 31, | |||||||||||
NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT | 2020 | 2019 | |||||||||
Real Estate (a) | $52,051 | $4,030 | |||||||||
Total | $52,051 | $4,030 |
March 31, 2020 | |||||
Term Credit Agreement borrowings due 2024 at a variable interest rate of 3.0% at March 31, 2020 (a)(c) | $350,000 | ||||
Incremental Term Loan Agreement borrowings due 2026 at a variable interest rate of 3.5% at March 31, 2020 (b) | 300,000 | ||||
Revolving Credit Facility borrowings due 2020 at an average variable interest rate of 3.5% at March 31, 2020 (c)(d) | 82,000 | ||||
Total debt | 732,000 | ||||
Less: Deferred financing costs | (993) | ||||
Long-term debt, net of deferred financing costs | $731,007 |
2020 (a) | $82,000 | ||||
2021 | — | ||||
2022 | — | ||||
2023 | — | ||||
2024 | 350,000 | ||||
Thereafter | 300,000 | ||||
Total Debt | $732,000 |
Covenant Requirement | Actual Ratio | Favorable | |||||||||||||||
Covenant EBITDA to consolidated interest expense should not be less than | 2.5 to 1 | 10.3 to 1 | 7.8 | ||||||||||||||
Covenant debt to covenant net worth plus covenant debt shall not exceed | 65 | % | 43 | % | 22 | % |
Higher and Better Use Timberlands and Real Estate Development Investments | |||||||||||||||||
Land and Timber | Development Investments | Total | |||||||||||||||
Non-current portion at December 31, 2019 | $58,091 | $23,700 | $81,791 | ||||||||||||||
Plus: Current portion (a) | 274 | 12,389 | 12,663 | ||||||||||||||
Total Balance at December 31, 2019 | 58,365 | 36,089 | 94,454 | ||||||||||||||
Non-cash cost of land and improved development | (111) | (156) | (267) | ||||||||||||||
Timber depletion from harvesting activities and basis of timber sold in real estate sales | (85) | — | (85) | ||||||||||||||
Capitalized real estate development investments (b) | — | 1,727 | 1,727 | ||||||||||||||
Capital expenditures (silviculture) | 54 | — | 54 | ||||||||||||||
Intersegment transfers | 33 | — | 33 | ||||||||||||||
Total Balance at March 31, 2020 | 58,256 | 37,660 | 95,916 | ||||||||||||||
Less: Current portion (a) | (209) | (6,874) | (7,083) | ||||||||||||||
Non-current portion at March 31, 2020 | $58,047 | $30,786 | $88,833 |
Development Projects (a) | Pension Contributions (b) | Commitments (c) | Total | ||||||||||||||||||||
Remaining 2020 | $3,584 | $3,157 | $8,576 | $15,317 | |||||||||||||||||||
2021 | 161 | 681 | 4,143 | 4,985 | |||||||||||||||||||
2022 | 220 | — | 4,581 | 4,801 | |||||||||||||||||||
2023 | 232 | — | 4,821 | 5,053 | |||||||||||||||||||
2024 | 232 | — | 3,508 | 3,740 | |||||||||||||||||||
Thereafter | 2,770 | — | 11,496 | 14,266 | |||||||||||||||||||
$7,199 | $3,838 | $37,125 | $48,162 |
Three Months Ended March 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Income tax expense | ($3,706) | ($4,349) |
Three Months Ended March 31, | |||||||||||
2020 | 2019 | ||||||||||
Annualized effective tax rate after discrete items | 12.1 | % | 12.7 | % |
Financial Commitments (a) | Maximum Potential Payment | |||||||
Standby letters of credit (b) | $1,509 | |||||||
Surety bonds (c) | 5,212 | |||||||
Senior Notes due 2022 (d) | $325,000 | $325,000 | ||||||
Total financial commitments | $331,721 |
Outstanding Interest Rate Swaps (a) | ||||||||||||||||||||
Date Entered Into | Term | Notional Amount | Related Debt Facility | Fixed Rate of Swap | Bank Margin on Debt | Total Effective Interest Rate (b) | ||||||||||||||
August 2015 | 9 years | $170,000 | Term Credit Agreement | 2.20 | % | 1.63 | % | 3.83 | % | |||||||||||
August 2015 | 9 years | 180,000 | Term Credit Agreement | 2.35 | % | 1.63 | % | 3.98 | % | |||||||||||
April 2016 | 10 years | 100,000 | Incremental Term Loan | 1.60 | % | 1.90 | % | 3.50 | % | |||||||||||
April 2016 | 10 years | 100,000 | Incremental Term Loan | 1.60 | % | 1.90 | % | 3.50 | % | |||||||||||
July 2016 | 10 years | 100,000 | Incremental Term Loan | 1.26 | % | 1.90 | % | 3.16 | % |
Converted Treasury Rate Locks (a) | |||||||||||||||||
Date Entered Into | Term | Notional Amount | Rate | Related Debt Facility (b) | Expiration Date | ||||||||||||
January 2020 | 10 years | $100,000 | 1.53% | 2020 Incremental Term Loan Facility | March 31, 2020 | ||||||||||||
January 2020 | 10 years | 100,000 | 1.53% | 2020 Incremental Term Loan Facility | March 31, 2020 | ||||||||||||
February 2020 | 10 years | 50,000 | 1.35% | 2020 Incremental Term Loan Facility | March 31, 2020 |
Outstanding Interest Rate Swap Locks (a) | |||||||||||||||||
Date Entered Into | Term | Notional Amount | Fixed Rate of Swap Lock (b) | Related Debt Facility (c) | Effective Date | ||||||||||||
March 2020 | 10 years | $100,000 | 1.56% | 2020 Incremental Term Loan Facility | July 31, 2020 | ||||||||||||
March 2020 | 10 years | 100,000 | 1.59% | 2020 Incremental Term Loan Facility | June 30, 2020 | ||||||||||||
March 2020 | 10 years | 50,000 | 1.41% | 2020 Incremental Term Loan Facility | June 30, 2020 |
Outstanding Forward-Starting Interest Rate Swaps (a) | ||||||||||||||||||||
Date Entered Into | Term | Notional Amount | Fixed Rate of Swap | Related Debt Facility | Forward Date | Maximum Period Ending for Forecasted Issuance Date | ||||||||||||||
February 2020 | 10 years | $325,000 | 1.40 | % | Anticipated issuance of debt | April 2022 | April 2022 | |||||||||||||
March 2020 | 4 years | 100,000 | 0.88 | % | Anticipated extension of Term Credit Agreement | August 2024 | April 2020 (b) |
Three Months Ended March 31, | |||||||||||||||||
Income Statement Location | 2020 | 2019 | |||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||
Foreign currency exchange contracts | Other comprehensive (loss) | ($5,480) | $1,119 | ||||||||||||||
Foreign currency option contracts | Other comprehensive (loss) | (1,149) | 77 | ||||||||||||||
Interest rate swaps | Other comprehensive (loss) | (38,998) | (11,548) | ||||||||||||||
Treasury locks | Other comprehensive (loss) | (20,846) | — | ||||||||||||||
Interest rate swap locks | Other comprehensive (loss) | 854 | — | ||||||||||||||
Forward-starting interest rate swaps | Other comprehensive (loss) | (19,710) | — | ||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Foreign currency exchange contracts | Interest and other miscellaneous income, net | — | (16) | ||||||||||||||
Carbon option contracts | Interest and other miscellaneous (expense) income, net | 549 | 402 | ||||||||||||||
Notional Amount | |||||||||||
March 31, 2020 | December 31, 2019 | ||||||||||
Derivatives designated as cash flow hedges: | |||||||||||
Foreign currency exchange contracts | $60,350 | $56,350 | |||||||||
Foreign currency option contracts | 36,000 | 22,000 | |||||||||
Interest rate swaps | 650,000 | 650,000 | |||||||||
Interest rate swap locks | 250,000 | — | |||||||||
Forward-starting interest rate swaps | 425,000 | — | |||||||||
Derivative not designated as a hedging instrument: | |||||||||||
Foreign currency exchange contracts | — | — | |||||||||
Carbon options (a) | 5,070 | 9,592 |
Location on Balance Sheet | Fair Value Assets / (Liabilities) (a) | ||||||||||||||||
March 31, 2020 | December 31, 2019 | ||||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||||
Foreign currency exchange contracts | Other current assets | $79 | $424 | ||||||||||||||
Other assets | — | 390 | |||||||||||||||
Other current liabilities | (4,319) | (172) | |||||||||||||||
Other non-current liabilities | (599) | — | |||||||||||||||
Foreign currency option contracts | Other current assets | 68 | 151 | ||||||||||||||
Other assets | 129 | 209 | |||||||||||||||
Other current liabilities | (546) | (27) | |||||||||||||||
Other non-current liabilities | (497) | (30) | |||||||||||||||
Interest rate swaps | Other assets | — | 2,614 | ||||||||||||||
Other non-current liabilities | (47,452) | (11,068) | |||||||||||||||
Interest rate swap locks | Other non-current liabilities | (19,992) | — | ||||||||||||||
Forward-starting interest rate swaps | Other non-current liabilities | (19,710) | — | ||||||||||||||
Derivative not designated as a hedging instrument: | |||||||||||||||||
Carbon options | Other current liabilities | (14) | (607) | ||||||||||||||
Total derivative contracts: | |||||||||||||||||
Other current assets | $147 | $575 | |||||||||||||||
Other assets | 129 | 3,213 | |||||||||||||||
Total derivative assets | $276 | $3,788 | |||||||||||||||
Other current liabilities | (4,879) | (806) | |||||||||||||||
Other non-current liabilities | (88,250) | (11,098) | |||||||||||||||
Total derivative liabilities | ($93,129) | ($11,904) |
March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||||||||
Asset (Liability) (a) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 1 | Level 2 | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $126,260 | $126,260 | — | $68,434 | $68,434 | — | ||||||||||||||||||||||||||||||||
Restricted cash (b) | 475 | 475 | — | 1,233 | 1,233 | — | ||||||||||||||||||||||||||||||||
Current maturities of long-term debt | — | — | — | (82,000) | — | (82,000) | ||||||||||||||||||||||||||||||||
Long-term debt (c) | (731,007) | — | (732,000) | (648,958) | — | (650,000) | ||||||||||||||||||||||||||||||||
Interest rate swaps (d) | (47,452) | — | (47,452) | (8,454) | — | (8,454) | ||||||||||||||||||||||||||||||||
Interest rate swap locks (d) | (19,992) | — | (19,992) | — | — | — | ||||||||||||||||||||||||||||||||
Forward-starting interest rate swaps (d) | (19,710) | — | (19,710) | — | — | — | ||||||||||||||||||||||||||||||||
Foreign currency exchange contracts (d) | (4,839) | — | (4,839) | 642 | — | 642 | ||||||||||||||||||||||||||||||||
Foreign currency option contracts (d) | (846) | — | (846) | 303 | — | 303 | ||||||||||||||||||||||||||||||||
Carbon option contracts (d) | (14) | — | (14) | (607) | — | (607) | ||||||||||||||||||||||||||||||||
Marketable equity securities (e) | 9,610 | 9,610 | — | 10,582 | 10,582 | — |
March 31, 2020 | December 31, 2019 | |||||||||||||||||||||||||||||||
Carrying Amount | Less than 12 Months | 12 Months or Greater | Total | Carrying Amount | Less than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||||
Fair value of marketable equity securities | $ | 9,610 | 9,610 | — | 9,610 | $10,582 | 10,582 | — | 10,582 | |||||||||||||||||||||||
Unrealized (losses) gains | — | (972) | — | (972) | — | 3,043 | — | 3,043 |
Components of Net Periodic Benefit Cost (Credit) | Income Statement Location | Pension | Postretirement | ||||||||||||||||||||||||||
Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||||
Service cost | Selling and general expenses | — | — | $2 | $1 | ||||||||||||||||||||||||
Interest cost | Interest and other miscellaneous (expense) income, net | 677 | 800 | 13 | 14 | ||||||||||||||||||||||||
Expected return on plan assets (a) | Interest and other miscellaneous (expense) income, net | (876) | (777) | — | — | ||||||||||||||||||||||||
Amortization of losses | Interest and other miscellaneous (expense) income, net | 215 | 112 | 2 | — | ||||||||||||||||||||||||
Net periodic benefit cost | $16 | $135 | $17 | $15 | |||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Gain on foreign currency remeasurement, net of cash flow hedges | $1,433 | $30 | ||||||||||||
Gain on sale or disposal of property and equipment | 3 | 21 | ||||||||||||
Log trading marketing fees | 47 | 57 | ||||||||||||
Costs related to the merger with Pope Resources | (2,487) | — | ||||||||||||
Miscellaneous expense, net | (107) | (73) | ||||||||||||
Total | ($1,111) | $35 |
March 31, 2020 | December 31, 2019 | ||||||||||
Finished goods inventory | |||||||||||
Real estate inventory (a) | $7,083 | $12,663 | |||||||||
Log inventory | 6,010 | 1,855 | |||||||||
Total inventory | $13,093 | $14,518 |
March 31, 2020 | |||||
Restricted cash held in escrow | $475 | ||||
Total restricted cash shown in the Consolidated Balance Sheets | 475 | ||||
Cash and cash equivalents | 126,260 | ||||
Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows | $126,735 |
Foreign currency translation (loss) gains | Net investment hedges of New Zealand subsidiary | Cash flow hedges | Employee benefit plans | Total | |||||||||||||||||||||||||
Balance as of December 31, 2018 | ($1,010) | $1,321 | $21,965 | ($22,037) | $239 | ||||||||||||||||||||||||
Other comprehensive (loss) income before reclassifications | 784 | — | (31,547) | (1,799) | (32,562) | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | — | — | 672 | 449 | (b) | 1,121 | |||||||||||||||||||||||
Net other comprehensive (loss) income | 784 | — | (30,875) | (1,350) | (31,441) | ||||||||||||||||||||||||
Balance as of December 31, 2019 | ($226) | $1,321 | ($8,910) | ($23,387) | ($31,202) | ||||||||||||||||||||||||
Other comprehensive (loss) income before reclassifications | (33,894) | — | (82,391) | (a) | — | (b) | (116,285) | ||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive (loss) income | — | — | 15 | 217 | 232 | ||||||||||||||||||||||||
Net other comprehensive (loss) income | (33,894) | — | (82,376) | 217 | (116,053) | ||||||||||||||||||||||||
Balance as of March 31, 2020 | ($34,120) | $1,321 | ($91,286) | ($23,170) | ($147,255) |
Details about accumulated other comprehensive (loss) income components | Amount reclassified from accumulated other comprehensive (loss) income | Affected line item in the income statement | ||||||||||||||||||
March 31, 2020 | March 31, 2019 | |||||||||||||||||||
Realized loss (gain) on foreign currency exchange contracts | $18 | ($412) | Other operating (expense) income, net | |||||||||||||||||
Realized loss (gain) on foreign currency option contracts | 9 | (14) | Other operating (expense) income, net | |||||||||||||||||
Noncontrolling interest | (6) | 98 | Comprehensive (loss) income attributable to noncontrolling interest | |||||||||||||||||
Income tax (benefit) expense from gain on foreign currency contracts | (6) | 92 | Income tax expense | |||||||||||||||||
Net loss (gain) from accumulated other comprehensive income | $15 | ($236) |
Historical Rayonier | Historical Pope Resources | Pro Forma Adjustments for Mergers | Pro Forma Funding Adjustments | Pro Forma Combined | |||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $132.4 | $12.3 | ($267.4) | a | $249.2 | a | $126.5 | ||||||||||||||||||||||
Accounts receivable, net | 28.3 | 4.6 | — | — | 32.9 | ||||||||||||||||||||||||
Inventory | 13.1 | — | — | — | 13.1 | ||||||||||||||||||||||||
Prepaid expenses and other current assets | 15.3 | 3.8 | — | — | 19.1 | ||||||||||||||||||||||||
Total current assets | 189.1 | 20.7 | (267.4) | 249.2 | 191.6 | ||||||||||||||||||||||||
TIMBER AND TIMBERLANDS, NET | 2,355.6 | 436.4 | 527.9 | b | — | 3,319.9 | |||||||||||||||||||||||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS | 88.8 | 20.3 | 7.5 | c | — | 116.6 | |||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | |||||||||||||||||||||||||||||
Total property, plant and equipment, gross | 31.8 | 13.6 | (5.3) | — | 40.1 | ||||||||||||||||||||||||
Less—accumulated depreciation | (10.0) | (8.4) | 8.4 | — | (10.0) | ||||||||||||||||||||||||
Total property, plant and equipment, net | 21.8 | 5.2 | 3.1 | d | — | 30.1 | |||||||||||||||||||||||
OTHER ASSETS | 132.5 | 7.3 | (12.8) | e | — | 127.0 | |||||||||||||||||||||||
TOTAL ASSETS | $2,787.8 | $489.9 | $258.3 | $249.2 | $3,785.2 | ||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||||
Accounts payable | $20.8 | $2.9 | — | — | $23.7 | ||||||||||||||||||||||||
Current maturities of long-term debt | — | 25.1 | (0.1) | f | — | 25.0 | |||||||||||||||||||||||
Other current liabilities | 48.5 | 8.3 | 1.1 | g | — | 57.9 | |||||||||||||||||||||||
Total current liabilities | 69.3 | 36.3 | 1.0 | — | 106.6 | ||||||||||||||||||||||||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 1,055.3 | 136.8 | (65.4) | f | 249.2 | f | 1,375.9 | ||||||||||||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 24.7 | — | — | — | 24.7 | ||||||||||||||||||||||||
LONG-TERM LEASE LIABILITY | 83.4 | — | — | — | 83.4 | ||||||||||||||||||||||||
OTHER NON-CURRENT LIABILITIES | 155.5 | 9.1 | 6.0 | h | — | 170.6 | |||||||||||||||||||||||
TOTAL LIABILITIES | 1,388.2 | 182.2 | (58.4) | 249.2 | 1,761.2 | ||||||||||||||||||||||||
REDEEMABLE INTEREST IN THE OPERATING PARTNERSHIP | — | — | 106.8 | i | — | 106.8 | |||||||||||||||||||||||
EQUITY: | |||||||||||||||||||||||||||||
GENERAL PARTNERS’ CAPITAL | — | 0.6 | (0.6) | j | — | — | |||||||||||||||||||||||
LIMITED PARTNERS’ CAPITAL | — | 34.6 | (34.6) | j | — | — | |||||||||||||||||||||||
SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||||||
Common Shares | 889.8 | — | 161.4 | j | — | 1,051.2 | |||||||||||||||||||||||
Retained earnings | 570.9 | — | (21.1) | g,j | — | 549.8 | |||||||||||||||||||||||
Accumulated other comprehensive income | (147.3) | — | — | — | (147.3) | ||||||||||||||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 1,313.4 | 35.2 | 105.1 | j | — | 1,453.7 | |||||||||||||||||||||||
Noncontrolling interest in consolidated affiliates | 86.3 | 272.5 | 104.8 | k | — | 463.6 | |||||||||||||||||||||||
TOTAL NONCONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY | 1,399.7 | 307.7 | 316.7 | — | 2,024.1 | ||||||||||||||||||||||||
$2,787.8 | $489.9 | $258.3 | $249.2 | $3,785.2 |
Historical Rayonier | Historical Pope Resources | Pro Forma Adjustments for Mergers | Pro Forma Funding Adjustments | Pro Forma Combined | |||||||||||||||||||||||||
SALES | $259.1 | $24.4 | — | — | $283.5 | ||||||||||||||||||||||||
Costs and Expenses | — | ||||||||||||||||||||||||||||
Cost of sales | (209.4) | (18.5) | (7.9) | b,c,m | — | (235.8) | |||||||||||||||||||||||
Selling and general expenses | (10.0) | (7.5) | 4.4 | d,l,n | — | (13.1) | |||||||||||||||||||||||
Other operating (expense) income, net | (1.1) | (4.8) | — | — | (5.9) | ||||||||||||||||||||||||
(220.6) | (30.8) | (3.5) | — | (254.9) | |||||||||||||||||||||||||
OPERATING INCOME (LOSS) | 38.6 | (6.4) | (3.5) | — | 28.7 | ||||||||||||||||||||||||
Interest expense | (8.3) | (1.4) | 0.4 | o | (2.2) | o | (11.5) | ||||||||||||||||||||||
Interest and other miscellaneous income, net | (0.2) | — | — | — | (0.2) | ||||||||||||||||||||||||
INCOME BEFORE INCOME TAXES | 30.1 | (7.8) | (3.1) | (2.2) | 17.0 | ||||||||||||||||||||||||
Income tax expense | (3.7) | 0.3 | — | p | — | (3.4) | |||||||||||||||||||||||
NET INCOME (LOSS) | 26.4 | (7.5) | (3.1) | (2.2) | 13.6 | ||||||||||||||||||||||||
Less: Net (income) loss attributable to noncontrolling interest in the Operating Partnership | — | — | (0.5) | q | — | (0.5) | |||||||||||||||||||||||
Less: Net (income) loss attributable to noncontrolling interest in consolidated affiliates | (0.5) | 3.7 | — | — | 3.2 | ||||||||||||||||||||||||
NET INCOME ATTRIBUTABLE TO RAYONIER INC. | $25.9 | ($3.8) | ($3.6) | ($2.2) | $16.3 | ||||||||||||||||||||||||
EARNINGS PER COMMON SHARE | |||||||||||||||||||||||||||||
Basic earnings per share attributable to Rayonier Inc. | $0.20 | ($0.92) | r | $0.12 | |||||||||||||||||||||||||
Diluted earnings per share attributable to Rayonier Inc. | $0.20 | ($0.92) | r | $0.12 |
Pope Resources Consolidated Statement of Financial Position Line Item | Rayonier Historical Consolidated Balance Sheet Line Item | Pope Resources Historical Consolidated Statement of Financial Position | Reclassification (Rounded) (1) | Pope Resources Adjusted Historical Consolidated Balance Sheet (Unaudited, Rounded) | ||||||||||
Cash and cash equivalents | — | $12.3 | $12.3 | |||||||||||
Partnership cash | 2.7 | (2.7) | — | |||||||||||
ORM Timber Funds cash | 9.6 | (9.6) | — | |||||||||||
Accounts receivable, net | Accounts receivable, less allowance for doubtful accounts | 4.6 | — | 4.6 | ||||||||||
Contract assets | 2.4 | (2.4) | — | |||||||||||
Land held for sale | Inventory | — | — | — | ||||||||||
Prepaid expenses and other current assets | 1.4 | (1.4) | — | |||||||||||
Other current assets | — | 3.8 | 3.8 | |||||||||||
Timber and roads | 359.4 | (359.4) | — | |||||||||||
Timberland | 77.1 | (77.1) | — | |||||||||||
Timber and Timberlands, net | — | 436.4 | 436.4 | |||||||||||
Land held for development | Higher and Better Use Timberlands and Real Estate Developments | 20.3 | — | 20.3 | ||||||||||
Buildings and equipment, net of accumulated depreciation | 5.2 | (5.2) | — | |||||||||||
Total property, plant and equipment, gross | — | 13.6 | 13.6 | |||||||||||
Less - accumulated depreciation | — | (8.4) | (8.4) | |||||||||||
Restricted cash | Restricted cash | 0.7 | (0.7) | — | ||||||||||
Other assets | Other assets | 6.5 | 0.7 | 7.3 | ||||||||||
Accounts payable | Accounts payable | 2.9 | — | 2.9 | ||||||||||
Accrued liabilities | 5.7 | (5.7) | — | |||||||||||
Current portion of long-term debt - Partnership | 0.1 | (0.1) | — | |||||||||||
Current portion of long-term debt - Funds | 25.0 | (25.0) | — | |||||||||||
Current maturities of long- term debt | — | 25.1 | 25.1 | |||||||||||
Deferred revenue | Deferred revenue | 0.4 | (0.4) | — | ||||||||||
Current portion of environmental remediation liability | 1.0 | (1.0) | — | |||||||||||
Other current liabilities | Other current liabilities | 1.1 | 7.1 | 8.3 | ||||||||||
Long-term debt, net of unamortized debt issuance costs and current portion - Partnership | 104.4 | (104.4) | — | |||||||||||
Long-term debt, net of unamortized debt issuance costs - Funds | 32.3 | (32.3) | — | |||||||||||
Long-term debt, net of deferred financing costs | — | 136.8 | 136.8 | |||||||||||
Long-term lease liability | — | — | — | |||||||||||
Environmental remediation and other long term liabilities | Other non-current liabilities | 9.1 | — | 9.1 | ||||||||||
General Partners’ Capital | 0.6 | — | 0.6 | |||||||||||
Limited Partners’ Capital | 34.6 | — | 34.6 | |||||||||||
Noncontrolling interest | Noncontrolling interest | 272.5 | — | 272.5 |
Pope Resources Consolidated Statement of Income Line Item | Rayonier Historical Consolidated Statement of Income Line Item | Pope Resources Historical Consolidated Statement of Income | Reclassification (Rounded) (1) | Pope Resources Adjusted Historical Consolidated Statement of Income (Unaudited, Rounded) | ||||||||||
Total revenue | Sales | $24.4 | — | $24.4 | ||||||||||
Total cost of sales | Cost of sales | (18.5) | — | (18.5) | ||||||||||
General and Administrative | Selling and general expenses | (7.5) | — | (7.5) | ||||||||||
Operating expenses | Other operating (expense) income, net | (4.8) | — | (4.8) | ||||||||||
Interest expense, net | Interest expense | (1.4) | — | (1.4) | ||||||||||
Income tax benefit | Income tax expense | 0.3 | — | 0.3 | ||||||||||
Net and comprehensive (income) loss attributable to noncontrolling interests - ORM Timber Funds | 3.5 | (3.5) | — | |||||||||||
Net and comprehensive loss attributable to noncontrolling interests - Real Estate | 0.2 | (0.2) | — | |||||||||||
Net and comprehensive income attributable to unitholders | (3.8) | 3.8 | — | |||||||||||
Net income attributable to noncontrolling interest | — | 3.7 | 3.7 | |||||||||||
Net Income attributable to shareholders | — | (3.8) | (3.8) |
Cash consideration: | ||||||||
Pope units as of March 31, 2020 | 4.4 | |||||||
Less: Pope units held by Rayonier (1) | (0.1) | |||||||
Units outstanding, net | 4.3 | |||||||
Cash consideration (per Pope unit) | $37.50 | |||||||
159.5 | ||||||||
General Partner interest | 10.0 | |||||||
169.5 | ||||||||
Equity consideration: | ||||||||
Pope units as of March 31, 2020 | 4.4 | |||||||
Less: Pope units held by Rayonier (1) | (0.1) | |||||||
Units outstanding, net | 4.3 | |||||||
Exchange ratio | 2.751 | |||||||
Rayonier common shares/units to be issued | 11.6 | |||||||
Rayonier share price (2) | $24.01 | |||||||
279.2 | ||||||||
Total consideration to Pope unit holders | 448.6 | |||||||
Repayment of Pope debt | 65.9 | |||||||
Repayment premium on Pope debt | 2.3 | |||||||
Payment of transaction costs on behalf of Pope | 9.6 | |||||||
Fair value of replacement Rayonier restricted stock units for vested Pope awards | 0.2 | |||||||
Total pro forma purchase price | $526.7 |
Timberland and Real Estate Business | |||||
Cash | $2.7 | ||||
Other current assets | 3.4 | ||||
Timber and timberland | 492.4 | ||||
Land held for development | 27.7 | ||||
Buildings and equipment | 8.3 | ||||
Other assets | 5.8 | ||||
Goodwill (1) | — | ||||
Other current liabilities | (7.3) | ||||
Environmental liabilities | (11.1) | ||||
Long-term debt | (39.0) | ||||
Other non-current liabilities (2) | (4.0) | ||||
Less: noncontrolling interest | (3.3) | ||||
Pro forma purchase price | 475.7 | ||||
Timber Fund Business | |||||
Cash | 9.6 | ||||
Other current assets | 5.0 | ||||
Timber and timberland | 471.9 | ||||
Goodwill (1) | — | ||||
Current portion of long-term debt | (25.0) | ||||
Other current liabilities | (3.9) | ||||
Long-term debt | (32.4) | ||||
Less: noncontrolling interest | (374.2) | ||||
Pro forma purchase price | 51.0 | ||||
Total pro forma purchase price | $526.7 |
Decrease from extinguishment of existing Pope debt (1) | ($68.3) | ||||
Decrease from cash consideration paid to Pope unit holders | (169.5) | ||||
Decrease from cash payment of transaction-related expenses made on behalf of Pope | (9.6) | ||||
Decrease from cash payment of transaction-related expenses(2) | (20.0) | ||||
Pro forma adjustment to cash and cash equivalents | ($267.4) |
Issuance of new debt, net of debt issuance costs | $249.2 | ||||
Pro forma adjustment to cash and cash equivalents | $249.2 |
Estimated depletion expense | ($50.7) | ||||
Historical depletion expense | 42.8 | ||||
Pro forma adjustment to depletion expense | ($7.9) |
Estimated depreciation expense | ($0.7) | ||||
Historical depreciation expense | 0.6 | ||||
Pro forma adjustment to depreciation expense | ($0.1) |
Exchange of Pope units held by Rayonier for equity(1) | ($11.3) | ||||
Decrease in investment in joint venture | (1.5) | ||||
Pro forma adjustment to other assets | ($12.8) |
Decrease from extinguishment of existing Pope debt | ($66.0) | ||||
Increase from elimination of Pope’s debt issuance costs | 0.5 | ||||
Plus: Pro forma adjustments to current portion of long-term debt | 0.1 | ||||
Pro forma adjustment to long-term debt | ($65.4) |
Issuance of new debt, net of debt issuance costs | $249.2 | ||||
Pro forma adjustment to long-term debt | $249.2 |
Increase for change in control payment obligations | $1.1 | ||||
Pro forma adjustment to accrued expenses | $1.1 |
Increase in environmental liabilities | $2.0 | ||||
Increase in deferred tax liabilities | 4.0 | ||||
Pro forma adjustment to non-current liabilities | $6.0 |
General Partners’ Capital | ($0.6) | |||||||
Limited Partners’ Capital | (34.6) | |||||||
Historical Pope Partnership Equity as of March 31, 2020 | (35.2) | |||||||
Decrease for exchange of Pope Resource units for equity | (11.3) | |||||||
Issuance of Rayonier common shares to Pope unit holders (1) | 172.4 | |||||||
Increase for issuance of Rayonier restricted stock units for Pope’s vested awards | 0.2 | |||||||
Pro forma adjustments to common shares | 161.4 | |||||||
Decrease for transaction-related expenses | (20.0) | |||||||
Decrease for change in control payment obligations | (1.1) | |||||||
Pro forma adjustment to retained earnings | (21.1) | |||||||
Pro forma adjustments to shareholder’s equity | $105.1 |
Pope’s historical equity compensation expense | ($0.8) | |||||||
Fair value of replacement restricted awards | 1.4 | |||||||
Approximate vesting period (in quarters) | 16 | |||||||
0.1 | ||||||||
Pro forma adjustment to equity compensation expense | ($0.7) |
Pro forma adjustment to depletion expense | ($7.9) | ||||
Pro forma adjustment to cost of goods sold | ($7.9) |
Estimated increase to depreciation expense | ($0.1) | ||||
Estimated increase to equity compensation expense | (0.7) | ||||
Elimination of legal and professional expenses | 5.2 | ||||
Pro forma adjustment to selling and general expenses | $4.4 |
Elimination of interest expense - Pope debt | $0.4 | ||||
Pro forma adjustment to interest expense | $0.4 |
Interest expense on new debt | $2.2 | ||||
Amortization of new debt issuance costs | — | ||||
Pro forma adjustment to interest expense | $2.2 |
Redeemable Rayonier, L.P. units outstanding (1) | 4,446,153 | |||||||
Total units outstanding | 140,764,718 | |||||||
3 | % | |||||||
Net Income | 13.6 | |||||||
Less: Net (income) loss attributable to noncontrolling interest in consolidated affiliates | 3.2 | |||||||
Net income attributable to unitholders | 16.8 | |||||||
Net Income attributable to noncontrolling interest in the Operating Partnership | $0.5 |
Net income attributable to Rayonier | Outstanding shares | Per share amount | |||||||||
Earnings per share, basic | $16.3 | 136,318,565 | $0.12 | ||||||||
Earnings per share, diluted | 16.3 | 136,529,121 | $0.12 |
Historical | Shares issued in the transaction (1) | Pro Forma Total | |||||||||
Weighted-average shares outstanding, basic | 129,137,494 | 7,181,071 | 136,318,565 | ||||||||
Weighted-average shares outstanding, diluted | 129,348,050 | 7,181,071 | 136,529,121 |
Historical Rayonier Operating Company | Pro Forma Rayonier Contribution Adjustments (a) | Historical Pope Resources | Pro Forma Adjustments for the Mergers | Pro Forma Funding Adjustments | Pro Forma Rayonier, L.P. | ||||||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $126.3 | $6.1 | $12.3 | ($267.4) | b | $249.2 | b | $126.5 | |||||||||||||||||||||||||||
Accounts receivable, net | 28.3 | — | 4.6 | — | — | 32.9 | |||||||||||||||||||||||||||||
Inventory | 13.1 | — | — | — | — | 13.1 | |||||||||||||||||||||||||||||
Prepaid expenses and other current assets | 15.3 | — | 3.8 | — | — | 19.1 | |||||||||||||||||||||||||||||
Total current assets | 183.0 | 6.1 | 20.7 | (267.4) | 249.2 | 191.6 | |||||||||||||||||||||||||||||
TIMBER AND TIMBERLANDS, NET | 2,355.6 | — | 436.4 | 527.9 | c | — | 3,319.9 | ||||||||||||||||||||||||||||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS | 88.8 | — | 20.3 | 7.5 | d | — | 116.6 | ||||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | |||||||||||||||||||||||||||||||||||
Total property, plant and equipment, gross | 31.8 | — | 13.6 | (5.3) | — | 40.1 | |||||||||||||||||||||||||||||
Less—accumulated depreciation | (10.0) | — | (8.4) | 8.4 | — | (10.0) | |||||||||||||||||||||||||||||
Total property, plant & equipment, net | 21.8 | — | 5.2 | 3.1 | e | — | 30.1 | ||||||||||||||||||||||||||||
OTHER ASSETS | 132.4 | 0.1 | 7.3 | (12.8) | f | — | 127.0 | ||||||||||||||||||||||||||||
TOTAL ASSETS | $2,781.6 | $6.2 | $489.9 | $258.3 | 249.2 | $3,785.2 | |||||||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||||||||||
Accounts payable | $20.8 | — | $2.9 | — | — | $23.7 | |||||||||||||||||||||||||||||
Current maturities of long-term debt | — | — | 25.1 | (0.1) | g | — | 25.0 | ||||||||||||||||||||||||||||
Other current liabilities | 42.3 | — | 6.2 | 8.3 | 1.1 | h | — | 57.9 | |||||||||||||||||||||||||||
Total current liabilities | 63.1 | 6.2 | 36.3 | 1.0 | — | 106.6 | |||||||||||||||||||||||||||||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 731.0 | 324.3 | 136.8 | (65.4) | g | 249.2 | g | 1,375.9 | |||||||||||||||||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 24.7 | — | — | — | — | 24.7 | |||||||||||||||||||||||||||||
LONG-TERM LEASE LIABILITY | 83.4 | — | — | — | — | 83.4 | |||||||||||||||||||||||||||||
OTHER NON-CURRENT LIABILITIES | 155.5 | — | 9.1 | 6.0 | i | — | 170.6 | ||||||||||||||||||||||||||||
TOTAL LIABILITIES | 1,057.7 | 330.5 | 182.2 | (58.4) | 249.2 | 1,761.2 | |||||||||||||||||||||||||||||
REDEEMABLE OPERATING PARTNERSHIP UNITS | — | — | — | 106.8 | j | — | 106.8 | ||||||||||||||||||||||||||||
CAPITAL: | |||||||||||||||||||||||||||||||||||
General partner’s capital | — | — | 0.6 | 9.4 | k | — | 10.0 | ||||||||||||||||||||||||||||
Limited partner’s capital | — | — | 34.6 | 1,556.3 | k | — | 1,590.9 | ||||||||||||||||||||||||||||
Equity | 1,784.9 | (324.3) | — | (1,460.6) | k | — | — | ||||||||||||||||||||||||||||
Accumulated other comprehensive income | (147.3) | — | — | — | — | (147.3) | |||||||||||||||||||||||||||||
TOTAL CONTROLLING INTEREST CAPITAL | 1,637.6 | (324.3) | 35.2 | 105.1 | k | — | 1,453.6 | ||||||||||||||||||||||||||||
Noncontrolling interest | 86.3 | — | 272.5 | 104.8 | l | — | 463.6 | ||||||||||||||||||||||||||||
TOTAL CAPITAL | 1,723.9 | (324.3) | 307.7 | 209.9 | — | 1,917.2 | |||||||||||||||||||||||||||||
TOTAL LIABILITIES, REDEEMABLE OPERATING PARTNERSHIP UNITS AND CAPITAL | $2,781.6 | $6.2 | $489.9 | $258.3 | $249.2 | $3,785.2 |
Historical Rayonier Operating Company | Pro Forma Rayonier Contribution Adjustments (a) | Historical Pope Resources | Pro Forma Adjustments for the Mergers | Pro Forma Funding Adjustments | Pro Forma Rayonier, L.P. | ||||||||||||||||||||||||||||||
SALES | $259.1 | — | $24.4 | — | — | $283.5 | |||||||||||||||||||||||||||||
Costs and Expenses | — | ||||||||||||||||||||||||||||||||||
Cost of sales | (209.4) | — | (18.5) | (7.9) | c,d,n | — | (235.8) | ||||||||||||||||||||||||||||
Selling and general expenses | (10.0) | — | (7.5) | 4.4 | e,m,o | — | (13.1) | ||||||||||||||||||||||||||||
Other operating (expense) income, net | (1.1) | — | (4.8) | — | — | (5.9) | |||||||||||||||||||||||||||||
(220.6) | — | (30.8) | (3.5) | — | (254.9) | ||||||||||||||||||||||||||||||
OPERATING INCOME (LOSS) | 38.6 | — | (6.4) | (3.5) | — | 28.7 | |||||||||||||||||||||||||||||
Interest expense | (5.1) | (3.2) | (1.4) | 0.4 | p | (2.2) | p | (11.5) | |||||||||||||||||||||||||||
Interest and other miscellaneous income, net | 0.2 | (0.4) | — | — | — | (0.2) | |||||||||||||||||||||||||||||
INCOME BEFORE INCOME TAXES | 33.7 | (3.6) | (7.8) | (3.1) | (2.2) | 17.0 | |||||||||||||||||||||||||||||
Income tax expense | (3.7) | — | 0.3 | — | q | — | (3.4) | ||||||||||||||||||||||||||||
NET INCOME (LOSS) | 30.0 | (3.6) | (7.5) | (3.1) | (2.2) | 13.6 | |||||||||||||||||||||||||||||
Less: Net (income) loss attributable to noncontrolling interest in consolidated affiliates | (0.5) | — | 3.7 | — | — | 3.2 | |||||||||||||||||||||||||||||
NET INCOME AVAILABLE TO UNITHOLDERS | $29.5 | ($3.6) | ($3.8) | ($3.1) | ($2.2) | $16.8 | |||||||||||||||||||||||||||||
EARNINGS PER UNIT | |||||||||||||||||||||||||||||||||||
Net income available for unitholders - basic | ($0.92) | r | $0.12 | ||||||||||||||||||||||||||||||||
Net income available for unitholders - diluted | ($0.92) | r | $0.12 | ||||||||||||||||||||||||||||||||
Pope Resources Consolidated Statement of Financial Position Line Item | Rayonier Operating Company Historical Consolidated Balance Sheet Line Item | Pope Resources Historical Consolidated Statement of Financial Position | Reclassification (Rounded) (1) | Pope Resources Adjusted Historical Consolidated Balance Sheet (Unaudited, Rounded) | ||||||||||
Cash and cash equivalents | — | $12.3 | $12.3 | |||||||||||
Partnership cash | 2.7 | (2.7) | — | |||||||||||
ORM Timber Funds cash | 9.6 | (9.6) | — | |||||||||||
Accounts receivable, net | Accounts receivable, less allowance for doubtful accounts | 4.6 | — | 4.6 | ||||||||||
Contract assets | 2.4 | (2.4) | — | |||||||||||
Land held for sale | Inventory | — | — | — | ||||||||||
Prepaid expenses and other current assets | 1.4 | (1.4) | — | |||||||||||
Other current assets | — | 3.8 | 3.8 | |||||||||||
Timber and roads | 359.4 | (359.4) | — | |||||||||||
Timberland | 77.1 | (77.1) | — | |||||||||||
Timber and Timberlands, net | — | 436.4 | 436.4 | |||||||||||
Land held for development | Higher and Better Use Timberlands and Real Estate Developments | 20.3 | — | 20.3 | ||||||||||
Buildings and equipment, net of accumulated depreciation | 5.2 | (5.2) | — | |||||||||||
Total property, plant and equipment, gross | — | 13.6 | 13.6 | |||||||||||
Less - accumulated depreciation | — | (8.4) | (8.4) | |||||||||||
Restricted cash | Restricted cash | 0.7 | (0.7) | — | ||||||||||
Other assets | Other assets | 6.5 | 0.7 | 7.3 | ||||||||||
Accounts payable | Accounts payable | 2.9 | — | 2.9 | ||||||||||
Accrued liabilities | 5.7 | (5.7) | — | |||||||||||
Current portion of long-term debt - Partnership | 0.1 | (0.1) | — | |||||||||||
Current portion of long-term debt - Funds | 25.0 | (25.0) | — | |||||||||||
Current maturities of long-term debt | — | 25.1 | 25.1 | |||||||||||
Deferred revenue | Deferred revenue | 0.4 | (0.4) | — | ||||||||||
Current portion of environmental remediation liability | 1.0 | (1.0) | — | |||||||||||
Other current liabilities | Other current liabilities | 1.1 | 7.1 | 8.3 | ||||||||||
Long-term debt, net of unamortized debt issuance costs and current portion - Partnership | 104.4 | (104.4) | — | |||||||||||
Long-term debt, net of unamortized debt issuance costs - Funds | 32.3 | (32.3) | — | |||||||||||
Long-term debt, net of deferred financing costs | — | 136.8 | 136.8 | |||||||||||
Long-term lease liability | — | — | — | |||||||||||
Environmental remediation and other long term liabilities | Other non-current liabilities | 9.1 | — | 9.1 | ||||||||||
General Partners’ Capital | 0.6 | — | 0.6 | |||||||||||
Limited Partners’ Capital | 34.6 | — | 34.6 | |||||||||||
Noncontrolling interest | Noncontrolling interest | 272.5 | — | 272.5 |
Pope Resources Consolidated Statement of Income Line Item | Rayonier Operating Company Historical Consolidated Statement of Income Line Items | Pope Resources Historical Consolidated Statement of Income | Reclassification (Rounded) (1) | Pope Resources Adjusted Historical Consolidated Statement of Income (Unaudited, Rounded) | ||||||||||
Total revenue | Sales | $24.4 | — | $24.4 | ||||||||||
Total cost of sales | Cost of sales | (18.5) | — | (18.5) | ||||||||||
General and Administrative | Selling and general expenses | (7.5) | — | (7.5) | ||||||||||
Other operating (expense) income, net | (4.8) | — | (4.8) | |||||||||||
Interest expense, net | Interest expense | (1.4) | — | (1.4) | ||||||||||
Income tax benefit | Income tax expense | 0.3 | — | 0.3 | ||||||||||
Net and comprehensive (income) loss attributable to noncontrolling interests - ORM Timber Funds | 3.5 | (3.5) | — | |||||||||||
Net and comprehensive loss attributable to noncontrolling interests - Real Estate | 0.2 | (0.2) | — | |||||||||||
Net and comprehensive income attributable to unitholders | (3.8) | 3.8 | — | |||||||||||
Net income attributable to noncontrolling interest | — | 3.7 | 3.7 | |||||||||||
Net Income attributable to shareholders | — | (3.8) | (3.8) |
Cash consideration: | ||||||||
Pope units as of March 31, 2020 | 4.4 | |||||||
Less: Pope units held by Rayonier Operating Company(1) | (0.1) | |||||||
Units outstanding, net | 4.3 | |||||||
Cash consideration (per Pope unit) | $37.50 | |||||||
159.5 | ||||||||
General Partner interest | 10.0 | |||||||
169.5 | ||||||||
Equity consideration: | ||||||||
Pope units as of March 31, 2020 | 4.4 | |||||||
Less: Pope units held by Rayonier Operating Company (1) | (0.1) | |||||||
Units outstanding, net | 4.3 | |||||||
Exchange ratio | 2.751 | |||||||
Rayonier common shares/units to be issued | 11.6 | |||||||
Rayonier share price (2) | $24.01 | |||||||
279.2 | ||||||||
Total consideration to Pope unit holders | 448.6 | |||||||
Repayment of Pope debt | 65.9 | |||||||
Repayment premium on Pope debt | 2.3 | |||||||
Payment of transaction costs on behalf of Pope | 9.6 | |||||||
Fair value of replacement Rayonier restricted stock units for vested Pope awards | 0.2 | |||||||
Total pro forma purchase price | $526.7 |
Timberland and Real Estate Business | |||||
Cash | $2.7 | ||||
Other current assets | 3.4 | ||||
Timber and timberland | 492.4 | ||||
Land held for development | 27.7 | ||||
Buildings and equipment | 8.3 | ||||
Other assets | 5.8 | ||||
Goodwill(1) | — | ||||
Other current liabilities | (7.3) | ||||
Environmental liabilities | (11.1) | ||||
Long-term debt | (39.0) | ||||
Other non-current liabilities (2) | (4.0) | ||||
Less: noncontrolling interest | (3.3) | ||||
Pro forma purchase price | 475.7 | ||||
Timber Fund Business | |||||
Cash | 9.6 | ||||
Other current assets | 5.0 | ||||
Timber and timberland | 471.9 | ||||
Goodwill(1) | — | ||||
Current portion of long-term debt | (25.0) | ||||
Other current liabilities | (3.9) | ||||
Long-term debt | (32.4) | ||||
Less: noncontrolling interest | (374.2) | ||||
Pro forma purchase price | 51.0 | ||||
Total pro forma purchase price | $526.7 |
Cash and cash equivalents | 6.1 | |||||||
Other assets | 0.1 | |||||||
Total assets | 6.2 | |||||||
Accrued interest on Senior Notes (1) | 6.2 | |||||||
Senior Notes,(1) net of deferred financing costs | 324.3 | |||||||
Total liabilities | 330.5 | |||||||
Total equity | ($324.3) |
Decrease from extinguishment of existing Pope debt (1) | ($68.3) | ||||
Decrease from cash consideration paid to Pope unit holders | (169.5) | ||||
Decrease from cash payment of transaction-related expenses made on behalf of Pope | (9.6) | ||||
Decrease from cash payment of transaction-related expenses(2) | (20.0) | ||||
Pro forma adjustment to cash and cash equivalents | ($267.4) |
Issuance of new debt, net of debt issuance costs | $249.2 | ||||
Pro forma adjustment to cash and cash equivalents | $249.2 |
Estimated depletion expense | ($50.7) | ||||
Historical depletion expense | 42.8 | ||||
Pro forma adjustment to depletion expense | ($7.9) |
Estimated depreciation expense | ($0.7) | ||||
Historical depreciation expense | 0.6 | ||||
Pro forma adjustment to depreciation expense | ($0.1) |
Exchange of Pope units held by Rayonier Operating Company for equity (1) | ($11.3) | ||||
Decrease in investment in joint venture | (1.5) | ||||
Pro forma adjustment to other assets | ($12.8) |
Decrease from extinguishment of existing Pope debt | ($66.0) | ||||
Increase from elimination of Pope’s debt issuance costs | 0.5 | ||||
Plus: Pro forma adjustments to current portion of long-term debt | 0.1 | ||||
Pro forma adjustment to long-term debt | ($65.4) |
Issuance of new debt, net of debt issuance costs | $249.2 | ||||
Pro forma adjustment to long-term debt | $249.2 |
Increase for change in control payment obligations | $1.1 | ||||
Pro forma adjustment to accrued expenses | $1.1 |
Increase in environmental liabilities | $2.0 | ||||
Increase in deferred tax liabilities | 4.0 | ||||
Pro forma adjustment to non-current liabilities | $6.0 |
Issuance of general partner units to Rayonier Inc. | $10.0 | |||||||
Historical Pope general partners’ capital as of March 31, 2020 | (0.6) | |||||||
Pro forma adjustment to general partner’s capital | 9.4 | |||||||
Issuance of limited partner units to Rayonier Inc. | 1,590.9 | |||||||
Historical Pope limited partners’ capital as of March 31, 2020 | (34.6) | |||||||
Pro forma adjustments to limited partner’s capital | 1,556.3 | |||||||
Decrease for transaction-related expenses | (20.0) | |||||||
Decrease for change in control payment obligations | (1.1) | |||||||
Issuance of Rayonier restricted stock units for Pope’s vested awards | 0.2 | |||||||
Issuance of Rayonier common shares to Pope unit holders (1) | 172.4 | |||||||
Exchange of equity for Pope units held by Rayonier Operating Co. | (11.3) | |||||||
Exchange of equity to general partner units to Rayonier Inc. | (10.0) | |||||||
Exchange of equity to limited partner units to Rayonier Inc. | (1,590.9) | |||||||
Pro forma adjustment to equity | (1,460.6) | |||||||
Pro forma adjustments to controlling interest capital | $105.1 |
Pope’s historical equity compensation expense | ($0.8) | |||||||
Fair value of replacement Rayonier Inc.restricted awards | 1.4 | |||||||
Approximate vesting period (in quarters) | 16 | |||||||
0.1 | ||||||||
Pro forma adjustment to equity compensation expense | ($0.7) |
Pro forma adjustment to depletion expense | ($7.9) | ||||
Pro forma adjustment to cost of goods sold | ($7.9) |
Estimated increase to depreciation expense | ($0.1) | ||||
Estimated increase to equity compensation expense | (0.7) | ||||
Elimination of legal and professional expenses | 5.2 | ||||
Pro forma adjustment to selling and general expenses | $4.4 |
Elimination of interest expense - Pope debt | $0.4 | ||||
Pro forma adjustment to interest expense | $0.4 |
Interest expense on new debt | $2.2 | ||||
Amortization of new debt issuance costs | — | ||||
Pro forma adjustment to interest expense | $2.2 |
Net income available to unitholders | Outstanding units | Per unit amount | |||||||||
Earnings per unit, basic | $16.8 | 140,764,718 | $0.12 | ||||||||
Earnings per unit, dilutive | $16.8 | 140,975,274 | $0.12 |
Rayonier Inc. Units | Units issued in the transaction (1) | Pro Forma Total | |||||||||
Weighted-average units outstanding, basic | 136,318,565 | 4,446,153 | 140,764,718 | ||||||||
Weighted-average units outstanding, diluted | 136,529,121 | 4,446,153 | 140,975,274 |
Historical Rayonier | Historical Pope Resources | Pro Forma Adjustments for the Merger | Pro Forma Funding Adjustments | Pro Forma Combined | |||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $68.7 | $8.2 | ($267.4) | a | $249.2 | a | $58.7 | ||||||||||||||||||||||
Accounts receivable, net | 27.1 | 3.8 | — | — | 30.9 | ||||||||||||||||||||||||
Inventory | 14.5 | — | — | — | 14.5 | ||||||||||||||||||||||||
Prepaid expenses and other current assets | 15.7 | 4.2 | — | — | 19.9 | ||||||||||||||||||||||||
Total current assets | 126.0 | 16.2 | (267.4) | 249.2 | 124.0 | ||||||||||||||||||||||||
TIMBER AND TIMBERLANDS, NET | 2,482.0 | 444.3 | 514.4 | b | — | 3,440.7 | |||||||||||||||||||||||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS | 81.8 | 20.2 | 7.5 | c | — | 109.5 | |||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | |||||||||||||||||||||||||||||
Total property, plant and equipment, gross | 31.9 | 13.5 | (5.3) | — | 40.1 | ||||||||||||||||||||||||
Less—accumulated depreciation | (9.6) | (8.2) | 8.2 | — | (9.6) | ||||||||||||||||||||||||
Total property, plant and equipment, net | 22.3 | 5.3 | 2.9 | d | — | 30.5 | |||||||||||||||||||||||
OTHER ASSETS | 148.9 | 7.5 | (13.1) | e | — | 143.3 | |||||||||||||||||||||||
TOTAL ASSETS | $2,861.0 | $493.5 | $244.3 | $249.2 | $3,848.0 | ||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||||
Accounts payable | $18.2 | $1.7 | — | — | $19.9 | ||||||||||||||||||||||||
Current maturities of long-term debt | 82.0 | 25.1 | (0.1) | f | — | 107.0 | |||||||||||||||||||||||
Other current liabilities | 51.0 | 9.9 | 1.1 | g | — | 62.0 | |||||||||||||||||||||||
Total current liabilities | 151.2 | 36.7 | 1.0 | — | 188.9 | ||||||||||||||||||||||||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 973.1 | 128.8 | (65.4) | f | 249.2 | f | 1,285.7 | ||||||||||||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 25.3 | — | — | — | 25.3 | ||||||||||||||||||||||||
LONG-TERM LEASE LIABILITY | 90.5 | — | — | — | 90.5 | ||||||||||||||||||||||||
OTHER NON-CURRENT LIABILITIES | 83.3 | 9.0 | 6.0 | h | — | 98.4 | |||||||||||||||||||||||
TOTAL LIABILITIES | 1,323.4 | 174.5 | (58.4) | 249.2 | 1,688.7 | ||||||||||||||||||||||||
NONCONTROLLING INTEREST IN THE OPERATING PARTNERSHIP | — | — | 106.8 | i | — | 106.8 | |||||||||||||||||||||||
EQUITY: | |||||||||||||||||||||||||||||
GENERAL PARTNERS’ CAPITAL | — | 0.8 | (0.8) | j | — | — | |||||||||||||||||||||||
LIMITED PARTNERS’ CAPITAL | — | 42.0 | (42.0) | j | — | — | |||||||||||||||||||||||
SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||||||
Common Shares | 888.2 | — | 161.4 | i,j | — | 1,049.6 | |||||||||||||||||||||||
Retained earnings | 583.0 | — | (21.1) | g,j | — | 561.9 | |||||||||||||||||||||||
Accumulated other comprehensive income | (31.2) | — | — | — | (31.2) | ||||||||||||||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | 1,440.0 | 42.8 | 97.5 | j | — | 1,580.3 | |||||||||||||||||||||||
Noncontrolling interest in consolidated affiliates | 97.6 | 276.2 | 98.4 | k | — | 472.2 | |||||||||||||||||||||||
TOTAL NONCONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY | 1,537.6 | 319.0 | 302.7 | — | 2,159.3 | ||||||||||||||||||||||||
$2,861.0 | $493.5 | $244.3 | $249.2 | $3,848.0 |
Historical Rayonier | Historical Pope Resources | Pro Forma Adjustments for the Merger | Pro Forma Funding Adjustments | Pro Forma Combined | |||||||||||||||||||||||||
SALES | $711.6 | $109.9 | — | — | $821.5 | ||||||||||||||||||||||||
Costs and Expenses | — | ||||||||||||||||||||||||||||
Cost of sales | (558.4) | (95.1) | (25.7) | b,c,m | — | (679.2) | |||||||||||||||||||||||
Selling and general expenses | (41.7) | (17.2) | 4.2 | d,l,n | — | (54.7) | |||||||||||||||||||||||
Other operating (expense) income, net | (4.5) | (1.6) | — | — | (6.1) | ||||||||||||||||||||||||
(604.6) | (113.9) | (21.5) | — | (740.0) | |||||||||||||||||||||||||
OPERATING INCOME | 107.0 | (4.0) | (21.5) | — | 81.5 | ||||||||||||||||||||||||
Interest expense | (31.7) | (5.8) | 1.7 | o | (8.9) | o | (44.7) | ||||||||||||||||||||||
Interest and other miscellaneous income, net | 5.3 | — | — | — | 5.3 | ||||||||||||||||||||||||
INCOME BEFORE INCOME TAXES | 80.6 | (9.8) | (19.8) | (8.9) | 42.1 | ||||||||||||||||||||||||
Income tax expense | (12.9) | (0.2) | — | p | — | (13.1) | |||||||||||||||||||||||
NET INCOME | 67.7 | (10.0) | (19.8) | (8.9) | 29.0 | ||||||||||||||||||||||||
Less: Net (income) loss attributable to noncontrolling interest in the Operating Partnership | — | — | (1.0) | q | — | (1.0) | |||||||||||||||||||||||
Less: Net (income) loss attributable to noncontrolling interest in consolidated affiliates | (8.6) | 12.4 | — | — | 3.8 | ||||||||||||||||||||||||
NET INCOME ATTRIBUTABLE TO RAYONIER | $59.1 | $2.4 | ($20.8) | ($8.9) | $31.8 | ||||||||||||||||||||||||
EARNINGS PER COMMON SHARE | |||||||||||||||||||||||||||||
Basic earnings per share attributable to Rayonier Inc. | $0.46 | $0.52 | r | $0.23 | |||||||||||||||||||||||||
Diluted earnings per share attributable to Rayonier Inc. | $0.46 | $0.52 | r | $0.23 |
Pope Resources Consolidated Statement of Financial Position Line Item | Rayonier Historical Consolidated Balance Sheet Line Item | Pope Resources Historical Consolidated Statement of Financial Position | Reclassification (Rounded) (1) | Pope Resources Adjusted Historical Consolidated Balance Sheet (Unaudited, Rounded) | ||||||||||
Cash and cash equivalents | — | $8.2 | $8.2 | |||||||||||
Partnership cash | 2.0 | (2.0) | — | |||||||||||
ORM Timber Funds cash | 6.2 | (6.2) | — | |||||||||||
Accounts receivable, net | Accounts receivable, less allowance for doubtful accounts | 3.8 | — | 3.8 | ||||||||||
Contract assets | 2.8 | (2.8) | — | |||||||||||
Land held for sale | Inventory | — | — | — | ||||||||||
Prepaid expenses and other current assets | 1.4 | (1.4) | — | |||||||||||
Other current assets | — | 4.2 | 4.2 | |||||||||||
Timber and roads | 367.3 | (367.3) | — | |||||||||||
Timberland | 77.0 | (77.0) | — | |||||||||||
Timber and Timberlands, net | — | 444.3 | 444.3 | |||||||||||
Land held for development | Higher and Better Use Timberlands and Real Estate Developments | 20.2 | — | 20.2 | ||||||||||
Buildings and equipment, net of accumulated depreciation | 5.3 | (5.3) | — | |||||||||||
Total property, plant and equipment, gross | — | 13.5 | 13.5 | |||||||||||
Less - accumulated depreciation | — | (8.2) | (8.2) | |||||||||||
Restricted cash | Restricted cash | 0.8 | (0.8) | — | ||||||||||
Other assets | Other assets | 6.7 | 0.8 | 7.5 | ||||||||||
Accounts payable | Accounts payable | 1.7 | — | 1.7 | ||||||||||
Accrued liabilities | 7.2 | (7.2) | — | |||||||||||
Current portion of long-term debt - Partnership | 0.1 | (0.1) | — | |||||||||||
Current portion of long-term debt - Funds | 25.0 | (25.0) | — | |||||||||||
Current maturities of long- term debt | — | 25.1 | 25.1 | |||||||||||
Deferred revenue | Deferred revenue | 0.2 | (0.2) | — | ||||||||||
Current portion of environmental remediation liability | 1.1 | (1.1) | — | |||||||||||
Other current liabilities | Other current liabilities | 1.4 | 8.5 | 9.9 | ||||||||||
Long-term debt, net of unamortized debt issuance costs and current portion - Partnership | 96.4 | (96.4) | — | |||||||||||
Long-term debt, net of unamortized debt issuance costs - Funds | 32.3 | (32.3) | — | |||||||||||
Long-term debt, net of deferred financing costs | — | 128.8 | 128.8 | |||||||||||
Long-term lease liability | — | — | — | |||||||||||
Environmental remediation and other long term liabilities | Other non-current liabilities | 9.0 | — | 9.0 | ||||||||||
General Partners’ Capital | 0.8 | — | 0.8 | |||||||||||
Limited Partners’ Capital | 42.0 | — | 42.0 | |||||||||||
Noncontrolling interest | Noncontrolling interest | 276.2 | — | 276.2 |
Pope Resources Consolidated Statement of Income Line Item | Rayonier Historical Consolidated Statement of Income Line Item | Pope Resources Historical Consolidated Statement of Income | Reclassification (Rounded) (1) | Pope Resources Adjusted Historical Consolidated Statement of Income (Unaudited, Rounded) | ||||||||||
Total revenue | Sales | $109.9 | — | $109.9 | ||||||||||
Total cost of sales | Cost of sales | (79.2) | (15.9) | (95.1) | ||||||||||
Partnership Timber Operating expenses | (5.3) | 5.3 | — | |||||||||||
Funds Timber Operating expenses | (5.8) | 5.8 | — | |||||||||||
Timberland Investment Management Operating expenses | (4.9) | 4.9 | — | |||||||||||
Environmental remediation (Real Estate) | (1.6) | 1.6 | — | |||||||||||
General and Administrative | Selling and general expenses | (12.1) | (5.1) | (17.2) | ||||||||||
Real Estate Operating expenses | (5.1) | 5.1 | — | |||||||||||
Gain on sale of timberland | 0.1 | (0.1) | — | |||||||||||
Other operating (expense) income, net | — | (1.6) | (1.6) | |||||||||||
Interest expense, net | Interest expense | (5.8) | — | (5.8) | ||||||||||
Interest and other miscellaneous income, net | — | — | — | |||||||||||
Income tax expense | Income tax expense | (0.2) | — | (0.2) | ||||||||||
Net and comprehensive (income) loss attributable to noncontrolling interests - ORM Timber Funds | 11.8 | (11.8) | — | |||||||||||
Net and comprehensive loss attributable to noncontrolling interests - Real Estate | 0.6 | (0.6) | — | |||||||||||
Net and comprehensive income attributable to unitholders | 2.4 | (2.4) | — | |||||||||||
Net income attributable to noncontrolling interest | — | 12.4 | 12.4 | |||||||||||
Net Income attributable to shareholders | — | 2.4 | 2.4 |
Cash consideration: | ||||||||
Pope units as of December 31, 2019 | 4.4 | |||||||
Less: Pope units held by Rayonier (1) | (0.1) | |||||||
Units outstanding, net | 4.3 | |||||||
Cash consideration (per Pope unit) | $37.50 | |||||||
159.5 | ||||||||
General Partner interest | 10.0 | |||||||
169.5 | ||||||||
Equity consideration: | ||||||||
Pope units as of December 31, 2019 | 4.4 | |||||||
Less: Pope units held by Rayonier (1) | (0.1) | |||||||
Units outstanding, net | 4.3 | |||||||
Exchange ratio | 2.751 | |||||||
Rayonier common shares/units to be issued | 11.6 | |||||||
Rayonier share price (2) | $24.01 | |||||||
279.2 | ||||||||
Total consideration to Pope unit holders | 448.6 | |||||||
Repayment of Pope debt | 65.9 | |||||||
Repayment premium on Pope debt | 2.3 | |||||||
Payment of transaction costs on behalf of Pope | 9.6 | |||||||
Fair value of replacement Rayonier restricted stock units for vested Pope awards | 0.2 | |||||||
Total pro forma purchase price | $526.7 |
Timberland and Real Estate Business | |||||
Cash | 2.0 | ||||
Other current assets | 3.0 | ||||
Timber and timberland | 486.9 | ||||
Land held for development | 27.7 | ||||
Buildings and equipment | 8.3 | ||||
Other assets | 5.7 | ||||
Goodwill (1) | — | ||||
Other current liabilities | (8.1) | ||||
Environmental liabilities | (11.1) | ||||
Long-term debt | (31.0) | ||||
Other non-current liabilities (2) | (4.1) | ||||
Less: noncontrolling interest | (3.3) | ||||
Pro forma purchase price | 476.0 | ||||
Timber Fund Business | |||||
Cash | 6.2 | ||||
Other current assets | 4.9 | ||||
Timber and timberland | 471.9 | ||||
Goodwill (1) | — | ||||
Current portion of long-term debt | (25.0) | ||||
Other current liabilities | (3.5) | ||||
Long-term debt | (32.4) | ||||
Less: noncontrolling interest | (371.4) | ||||
Pro forma purchase price | 50.7 | ||||
Total pro forma purchase price | $526.7 |
Decrease from extinguishment of existing Pope debt (1) | ($68.3) | ||||
Decrease from cash consideration paid to Pope unit holders | (169.5) | ||||
Decrease from cash payment of transaction-related expenses made on behalf of Pope | (9.6) | ||||
Decrease from cash payment of transaction-related expenses(2) | (20.0) | ||||
Pro forma adjustment to cash and cash equivalents | ($267.4) |
Issuance of new debt, net of debt issuance costs | $249.2 | ||||
Pro forma adjustment to cash and cash equivalents | $249.2 |
Estimated depletion expense | ($175.0) | ||||
Historical depletion expense | 154.0 | ||||
Pro forma adjustment to depletion expense | ($21.0) |
Estimated non-cash cost of land and improved development | ($26.5) | ||||
Historical non-cash cost of land and improved development | 21.8 | ||||
Pro forma adjustment to non-cash cost of land and improved development | ($4.7) |
Estimated depreciation expense | ($2.6) | ||||
Historical depreciation expense | 2.3 | ||||
Pro forma adjustment to depreciation expense | ($0.3) |
Exchange of Pope units held by Rayonier for common shares (1) | ($11.3) | ||||
Decrease in investment in joint venture | (1.8) | ||||
Pro forma adjustment to other assets | ($13.1) |
Decrease from extinguishment of existing Pope debt | ($66.0) | ||||
Increase from elimination of Pope’s debt issuance costs | 0.5 | ||||
Plus: Pro forma adjustments to current portion of long-term debt | 0.1 | ||||
Pro forma adjustment to long-term debt | ($65.4) |
Issuance of new debt, net of debt issuance costs | $249.2 | ||||
Pro forma adjustment to long-term debt | $249.2 |
Increase for change in control payment obligations | $1.1 | ||||
Pro forma adjustment to accrued expenses | $1.1 |
Increase in environmental liabilities | $2.0 | ||||
Increase in deferred tax liabilities | 4.0 | ||||
Pro forma adjustment to non-current liabilities | $6.0 |
General Partners’ Capital | ($0.8) | |||||||
Limited Partners’ Capital | (42.0) | |||||||
Historical Pope Partnership Equity as of December 31, 2019 | (42.8) | |||||||
Decrease for exchange of Pope Resource units for common stock | (11.3) | |||||||
Issuance of Rayonier common shares to Pope unit holders (1) | 172.4 | |||||||
Increase for issuance of Rayonier restricted stock units for Pope’s vested awards | 0.2 | |||||||
Pro forma adjustments to common shares | 161.4 | |||||||
Decrease for transaction-related expenses | (20.0) | |||||||
Decrease for change in control payment obligations | (1.1) | |||||||
Pro forma adjustment to retained earnings | (21.1) | |||||||
Pro forma adjustments to shareholder’s equity | $97.5 |
Pope’s historical equity compensation expense | ($1.2) | |||||||
Fair value of replacement restricted awards | 1.4 | |||||||
Approximate vesting period (in years) | 4 | |||||||
0.4 | ||||||||
Pro forma adjustment to equity compensation expense | ($0.8) |
Pro forma adjustment to depletion expense | ($21.0) | ||||
Pro forma adjustment to non-cash cost of land and improved development | (4.7) | ||||
Pro forma adjustment to cost of goods sold | ($25.7) |
Estimated increase to depreciation expense | ($0.3) | ||||
Estimated increase to equity compensation expense | (0.8) | ||||
Elimination of legal and professional expenses | 5.3 | ||||
Pro forma adjustment to selling and general expenses | $4.2 |
Elimination of interest expense - Pope debt | $1.7 | ||||
Pro forma adjustment to interest expense | $1.7 |
Interest expense on new debt | $8.8 | ||||
Amortization of new debt issuance costs | 0.1 | ||||
Pro forma adjustment to interest expense | $8.9 |
Redeemable Rayonier, L.P. units outstanding (1) | 4,446,153 | |||||||
Total units outstanding | 140,884,426 | |||||||
3 | % | |||||||
Net Income | 29.0 | |||||||
Less: Net (income) loss attributable to noncontrolling interest in consolidated affiliates | 3.8 | |||||||
Net income attributable to unitholders | 32.8 | |||||||
Net Income attributable to noncontrolling interest in the Operating Partnership | $1.0 |
Net income attributable to Rayonier | Outstanding shares | Per share amount | |||||||||
Earnings per share, basic | $31.8 | 136,438,273 | $0.23 | ||||||||
Earnings per share, diluted | 31.8 | 136,779,459 | $0.23 |
Historical | Shares issued in the transaction (1) | Pro Forma Total | |||||||||
Weighted-average shares outstanding, basic | 129,257,202 | 7,181,071 | 136,438,273 | ||||||||
Weighted-average shares outstanding, diluted | 129,598,388 | 7,181,071 | 136,779,459 |
Historical Rayonier Operating Company | Pro Forma Rayonier Contribution Adjustments (a) | Historical Pope Resources | Pro Forma Adjustments for the Mergers | Pro Forma Funding Adjustments | Pro Forma Rayonier, L.P. | ||||||||||||||||||||||||||||||
ASSETS: | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $68.4 | $0.3 | $8.2 | ($267.4) | b | $249.2 | b | $58.7 | |||||||||||||||||||||||||||
Accounts receivable, net | 27.1 | — | 3.8 | — | — | 30.9 | |||||||||||||||||||||||||||||
Inventory | 14.5 | — | — | — | — | 14.5 | |||||||||||||||||||||||||||||
Prepaid expenses and other current assets | 15.7 | — | 4.2 | — | — | 19.9 | |||||||||||||||||||||||||||||
Total current assets | 125.7 | 0.3 | 16.2 | (267.4) | 249.2 | 124.0 | |||||||||||||||||||||||||||||
TIMBER AND TIMBERLANDS, NET | 2,482.0 | — | 444.3 | 514.4 | c | — | 3,440.7 | ||||||||||||||||||||||||||||
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS | 81.8 | — | 20.2 | 7.5 | d | — | 109.5 | ||||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | |||||||||||||||||||||||||||||||||||
Total property, plant and equipment, gross | 31.9 | — | 13.5 | (5.3) | — | 40.1 | |||||||||||||||||||||||||||||
Less—accumulated depreciation | (9.6) | — | (8.2) | 8.2 | — | (9.6) | |||||||||||||||||||||||||||||
Total property, plant & equipment, net | 22.3 | — | 5.3 | 2.9 | e | — | 30.5 | ||||||||||||||||||||||||||||
OTHER ASSETS | 148.9 | — | 7.5 | (13.1) | f | — | 143.3 | ||||||||||||||||||||||||||||
TOTAL ASSETS | $2,860.7 | $0.3 | $493.5 | $244.3 | 249.2 | $3,848.0 | |||||||||||||||||||||||||||||
LIABILITIES: | |||||||||||||||||||||||||||||||||||
Accounts payable | $18.2 | — | $1.7 | — | — | $19.9 | |||||||||||||||||||||||||||||
Current maturities of long-term debt | 82.0 | — | 25.1 | (0.1) | g | — | 107.0 | ||||||||||||||||||||||||||||
Other current liabilities | 48.0 | — | 3.0 | 9.9 | 1.1 | h | — | 62.0 | |||||||||||||||||||||||||||
Total current liabilities | 148.2 | 3.0 | 36.7 | 1.0 | — | 188.9 | |||||||||||||||||||||||||||||
LONG-TERM DEBT, NET OF DEFERRED FINANCING COSTS | 648.9 | 324.2 | 128.8 | (65.4) | g | 249.2 | g | 1,285.7 | |||||||||||||||||||||||||||
PENSION AND OTHER POSTRETIREMENT BENEFITS | 25.3 | — | — | — | — | 25.3 | |||||||||||||||||||||||||||||
LONG-TERM LEASE LIABILITY | 90.5 | — | — | — | — | 90.5 | |||||||||||||||||||||||||||||
OTHER NON-CURRENT LIABILITIES | 83.3 | — | 9.0 | 6.0 | i | — | 98.4 | ||||||||||||||||||||||||||||
TOTAL LIABILITIES | 996.2 | 327.2 | 174.5 | (58.4) | 249.2 | 1,688.7 | |||||||||||||||||||||||||||||
REDEEMABLE OPERATING PARTNERSHIP UNITS | — | — | — | 106.8 | j | — | 106.8 | ||||||||||||||||||||||||||||
CAPITAL: | |||||||||||||||||||||||||||||||||||
General partner’s capital | — | — | 0.8 | 9.2 | k | — | 10.0 | ||||||||||||||||||||||||||||
Limited partner’s capital | — | — | 42.0 | 1,559.5 | k | — | 1,601.5 | ||||||||||||||||||||||||||||
Equity | 1,798.1 | (326.9) | — | (1,471.2) | k | — | — | ||||||||||||||||||||||||||||
Accumulated other comprehensive income | (31.2) | — | — | — | — | (31.2) | |||||||||||||||||||||||||||||
TOTAL CONTROLLING INTEREST CAPITAL | 1,766.9 | (326.9) | 42.8 | 97.5 | k | — | 1,580.3 | ||||||||||||||||||||||||||||
Noncontrolling interest | 97.6 | — | 276.2 | 98.4 | l | — | 472.2 | ||||||||||||||||||||||||||||
TOTAL CAPITAL | 1,864.5 | (326.9) | 319.0 | 195.9 | — | 2,052.5 | |||||||||||||||||||||||||||||
TOTAL LIABILITIES, REDEEMABLE OPERATING PARTNERSHIP UNITS AND CAPITAL | $2,860.7 | $0.3 | $493.5 | $244.3 | $249.2 | $3,848.0 |
Historical Rayonier Operating Company | Pro Forma Rayonier Contribution Adjustments (a) | Historical Pope Resources | Pro Forma Adjustments for the Mergers | Pro Forma Funding Adjustments | Pro Forma Rayonier, L.P. | ||||||||||||||||||||||||||||||
SALES | $711.6 | — | $109.9 | — | — | $821.5 | |||||||||||||||||||||||||||||
Costs and Expenses | — | ||||||||||||||||||||||||||||||||||
Cost of sales | (558.4) | — | (95.1) | (25.7) | c,d,n | — | (679.2) | ||||||||||||||||||||||||||||
Selling and general expenses | (41.7) | — | (17.2) | 4.2 | e,m,o | — | (54.7) | ||||||||||||||||||||||||||||
Other operating (expense) income, net | (4.5) | — | (1.6) | — | — | (6.1) | |||||||||||||||||||||||||||||
(604.5) | — | (113.9) | (21.5) | — | (739.9) | ||||||||||||||||||||||||||||||
OPERATING INCOME | 107.0 | — | (4.0) | (21.5) | — | 81.5 | |||||||||||||||||||||||||||||
Interest expense | (19.1) | (12.6) | (5.8) | 1.7 | p | (8.9) | p | (44.7) | |||||||||||||||||||||||||||
Interest and other miscellaneous income, net | 7.1 | (1.8) | — | — | — | 5.3 | |||||||||||||||||||||||||||||
INCOME BEFORE INCOME TAXES | 95.0 | (14.4) | (9.8) | (19.8) | (8.9) | 42.1 | |||||||||||||||||||||||||||||
Income tax expense | (12.9) | — | (0.2) | — | q | — | (13.1) | ||||||||||||||||||||||||||||
NET INCOME | 82.1 | (14.4) | (10.0) | (19.8) | (8.9) | 29.0 | |||||||||||||||||||||||||||||
Less: Net (income) loss attributable to noncontrolling interest in consolidated affiliates | (8.6) | — | 12.4 | — | — | 3.8 | |||||||||||||||||||||||||||||
NET INCOME AVAILABLE TO UNITHOLDERS | $73.5 | ($14.4) | $2.4 | ($19.8) | ($8.9) | $32.8 | |||||||||||||||||||||||||||||
EARNINGS PER UNIT | |||||||||||||||||||||||||||||||||||
Net income available for unitholders - basic | $0.52 | r | $0.23 | ||||||||||||||||||||||||||||||||
Net income available for unitholders - diluted | $0.52 | r | $0.23 | ||||||||||||||||||||||||||||||||
Pope Resources Consolidated Statement of Financial Position Line Item | Rayonier Operating Company Historical Consolidated Balance Sheet Line Item | Pope Resources Historical Consolidated Statement of Financial Position | Reclassification (Rounded) (1) | Pope Resources Adjusted Historical Consolidated Balance Sheet (Unaudited, Rounded) | ||||||||||
Cash and cash equivalents | — | $8.2 | $8.2 | |||||||||||
Partnership cash | 2.0 | (2.0) | — | |||||||||||
ORM Timber Funds cash | 6.2 | (6.2) | — | |||||||||||
Accounts receivable, net | Accounts receivable, less allowance for doubtful accounts | 3.8 | — | 3.8 | ||||||||||
Contract assets | 2.8 | (2.8) | ||||||||||||
Land held for sale | Inventory | — | — | — | ||||||||||
Prepaid expenses and other current assets | 1.1 | (1.1) | — | |||||||||||
Other current assets | 3.9 | 3.9 | ||||||||||||
Timber and roads | 367.3 | (367.3) | — | |||||||||||
Timberland | 77.0 | (77.0) | — | |||||||||||
Timber and Timberlands, net | 444.3 | 444.3 | ||||||||||||
Land held for development | Higher and Better Use Timberlands and Real Estate Developments | 20.2 | 20.2 | |||||||||||
Buildings and equipment, net of accumulated depreciation | 5.3 | (5.3) | — | |||||||||||
Total property, plant and equipment, gross | 13.6 | 13.6 | ||||||||||||
Less - accumulated depreciation | (8.2) | (8.2) | ||||||||||||
Restricted cash | Restricted cash | 0.8 | (0.8) | — | ||||||||||
Other assets | Other assets | 6.6 | 0.8 | 7.4 | ||||||||||
Accounts payable | Accounts payable | 1.7 | — | 1.7 | ||||||||||
Accrued liabilities | 6.9 | (6.9) | — | |||||||||||
Current portion of long-term debt - Partnership | 0.1 | (0.1) | — | |||||||||||
Current portion of long-term debt - Funds | 25.0 | (25.0) | — | |||||||||||
Current maturities of long-term debt | — | 25.1 | 25.1 | |||||||||||
Deferred revenue | Deferred revenue | 0.2 | (0.2) | — | ||||||||||
Current portion of environmental remediation liability | 1.1 | (1.1) | — | |||||||||||
Other current liabilities | Other current liabilities | 1.4 | $8.2 | 9.6 | ||||||||||
Long-term debt, net of unamortized debt issuance costs and current portion - Partnership | 96.4 | (96.4) | — | |||||||||||
Long-term debt, net of unamortized debt issuance costs - Funds | 32.3 | (32.3) | — | |||||||||||
Long-term debt, net of deferred financing costs | 128.8 | 128.8 | ||||||||||||
Long-term lease liability | — | — | — | |||||||||||
Environmental remediation and other long term liabilities | Other non-current liabilities | 9.0 | — | 9.0 | ||||||||||
General Partners’ Capital | 0.8 | — | 0.8 | |||||||||||
Limited Partners’ Capital | 42.0 | — | 42.0 | |||||||||||
Noncontrolling interest | Noncontrolling interest | 276.2 | — | 276.2 |
Pope Resources Consolidated Statement of Income Line Item | Rayonier Operating Company Historical Consolidated Statement of Income Line Items | Pope Resources Historical Consolidated Statement of Income | Reclassification (Rounded) (1) | Pope Resources Adjusted Historical Consolidated Statement of Income (Unaudited, Rounded) | ||||||||||
Total revenue | Sales | $109.9 | — | $109.9 | ||||||||||
Total cost of sales | Cost of sales | (79.2) | (15.9) | (95.1) | ||||||||||
Partnership Timber Operating expenses | (5.3) | 5.3 | — | |||||||||||
Funds Timber Operating expenses | (5.8) | 5.8 | — | |||||||||||
Timberland Investment Management Operating expenses | (4.9) | 4.9 | — | |||||||||||
Environmental remediation (Real Estate) | (1.6) | 1.6 | — | |||||||||||
General and Administrative | Selling and general expenses | (12.1) | (5.1) | (17.2) | ||||||||||
Real Estate Operating expenses | (5.1) | 5.1 | — | |||||||||||
Gain on sale of timberland | 0.1 | (0.1) | — | |||||||||||
Other operating (expense) income, net | — | (1.6) | (1.6) | |||||||||||
Interest expense, net | Interest expense | (5.8) | — | (5.8) | ||||||||||
Interest and other miscellaneous income, net | — | — | — | |||||||||||
Income tax expense | Income tax expense | (0.2) | — | (0.2) | ||||||||||
Net and comprehensive (income) loss attributable to noncontrolling interests - ORM Timber Funds | 11.8 | (11.8) | — | |||||||||||
Net and comprehensive loss attributable to noncontrolling interests - Real Estate | 0.6 | (0.6) | — | |||||||||||
Net and comprehensive income attributable to unitholders | 2.4 | (2.4) | — | |||||||||||
Net income attributable to noncontrolling interest | — | 12.4 | 12.4 | |||||||||||
Net Income attributable to shareholders | — | 2.4 | 2.4 |
Cash consideration: | ||||||||
Pope units as of December 31, 2019 | 4.4 | |||||||
Less: Pope units held by Rayonier Operating Company(1) | (0.1) | |||||||
Units outstanding, net | 4.3 | |||||||
Cash consideration (per Pope unit) | $37.50 | |||||||
159.5 | ||||||||
General Partner interest | 10.0 | |||||||
169.5 | ||||||||
Equity consideration: | ||||||||
Pope units as of December 31, 2019 | 4.4 | |||||||
Less: Pope units held by Rayonier Operating Company (1) | (0.1) | |||||||
Units outstanding, net | 4.3 | |||||||
Exchange ratio | 2.751 | |||||||
Rayonier common shares/units to be issued | 11.6 | |||||||
Rayonier share price (2) | $24.01 | |||||||
279.2 | ||||||||
Total estimated consideration to Pope unit holders | 448.6 | |||||||
Estimated repayment of Pope debt | 65.9 | |||||||
Estimated repayment premium on Pope debt | 2.3 | |||||||
Payment of transaction costs on behalf of Pope | 9.6 | |||||||
Fair value of replacement Rayonier restricted stock units for vested Pope awards | 0.2 | |||||||
Total pro forma purchase price | $526.7 |
Timberland and Real Estate Business | |||||
Cash | 2.0 | ||||
Other current assets | 3.0 | ||||
Timber and timberland | 486.9 | ||||
Land held for development | 27.7 | ||||
Buildings and equipment | 8.3 | ||||
Other assets | 5.7 | ||||
Goodwill(1) | — | ||||
Other current liabilities | (8.1) | ||||
Environmental liabilities | (11.1) | ||||
Long-term debt | (31.0) | ||||
Other non-current liabilities (2) | (4.1) | ||||
Less: noncontrolling interest | (3.3) | ||||
Pro forma purchase price | 476.0 | ||||
Timber Fund Business | |||||
Cash | 6.2 | ||||
Other current assets | 4.9 | ||||
Timber and timberland | 471.9 | ||||
Goodwill(1) | — | ||||
Current portion of long-term debt | (25.0) | ||||
Other current liabilities | (3.5) | ||||
Long-term debt | (32.4) | ||||
Less: noncontrolling interest | (371.4) | ||||
Pro forma purchase price | 50.7 | ||||
Total pro forma purchase price | $526.7 |
Cash and cash equivalents | 0.3 | |||||||
Total assets | 0.3 | |||||||
Accrued interest on Senior Notes (1) | 3.0 | |||||||
Senior Notes,(1) net of deferred financing costs | 324.2 | |||||||
Total liabilities | 327.2 | |||||||
Total equity | ($326.9) |
Decrease from extinguishment of existing Pope debt (1) | ($68.3) | ||||
Decrease from cash consideration paid to Pope unit holders | (169.5) | ||||
Decrease from cash payment of transaction-related expenses made on behalf of Pope | (9.6) | ||||
Decrease from cash payment of transaction-related expenses(2) | (20.0) | ||||
Pro forma adjustment to cash and cash equivalents | ($267.4) |
Decrease from extinguishment of existing Pope debt (1) | ($68.3) | ||||
Decrease from cash consideration paid to Pope unit holders | (169.5) | ||||
Decrease from cash payment of transaction-related expenses made on behalf of Pope | (9.6) | ||||
Decrease from cash payment of transaction-related expenses(2) | (20.0) | ||||
Pro forma adjustment to cash and cash equivalents | ($267.4) |
Issuance of new debt, net of debt issuance costs | $249.2 | ||||
Pro forma adjustment to cash and cash equivalents | $249.2 |
Estimated depletion expense | ($175.0) | ||||
Historical depletion expense | 154.0 | ||||
Pro forma adjustment to depletion expense | ($21.0) |
Estimated non-cash cost of land and improved development | ($26.5) | ||||
Historical non-cash cost of land and improved development | 21.8 | ||||
Pro forma adjustment to non-cash cost of land and improved development | ($4.7) |
Estimated depreciation expense | ($2.6) | ||||
Historical depreciation expense | 2.3 | ||||
Pro forma adjustment to depreciation expense | ($0.2) |
Exchange of Pope units held by Rayonier Operating Company for equity (1) | ($11.3) | ||||
Decrease in investment in joint venture | (1.8) | ||||
Pro forma adjustment to other assets | ($13.1) |
Decrease from extinguishment of existing Pope debt | ($66.0) | ||||
Increase from elimination of Pope’s debt issuance costs | 0.5 | ||||
Plus: Pro forma adjustments to current portion of long-term debt | 0.1 | ||||
Pro forma adjustment to long-term debt | ($65.4) |
Issuance of new debt, net of debt issuance costs | $249.2 | ||||
Pro forma adjustment to long-term debt | $249.2 |
Increase for change in control payment obligations | $1.1 | ||||
Pro forma adjustment to accrued expenses | $1.1 |
Increase in environmental liabilities | $2.0 | ||||
Increase in deferred tax liabilities | 4.0 | ||||
Pro forma adjustment to non-current liabilities | $6.0 |
General Partner Consideration | $10.0 | |||||||
Historical Pope general partners’ capital as of December 31, 2019 | (0.8) | |||||||
Pro forma adjustment to general partner’s capital | 9.2 | |||||||
Issuance of limited partner units to Rayonier Inc. | 1,601.5 | |||||||
Historical Pope limited partners’ capital as of December 31, 2019 | (42.0) | |||||||
Pro forma adjustments to limited partner’s capital | 1,559.5 | |||||||
Decrease for transaction-related expenses | (20.0) | |||||||
Decrease for change in control payment obligations | (1.1) | |||||||
Issuance of Rayonier restricted stock units for Pope’s vested awards | 0.2 | |||||||
Exchange of equity for Pope units held by Rayonier Operating Co. | (11.3) | |||||||
Issuance of Rayonier common shares to Pope unit holders (1) | 172.4 | |||||||
Exchange of equity to general partner units to Rayonier Inc. | (10.0) | |||||||
Exchange of equity to limited partner units to Rayonier Inc. | (1,601.5) | |||||||
Pro forma adjustment to equity | (1,471.2) | |||||||
Pro forma adjustments to controlling interest capital | $97.5 |
Pope’s historical equity compensation expense | ($1.2) | |||||||
Fair value of replacement Rayonier Inc.restricted awards | 1.4 | |||||||
Approximate vesting period (in years) | 4 | |||||||
0.4 | ||||||||
Pro forma adjustment to equity compensation expense | ($0.8) |
Pro forma adjustment to depletion expense | ($21.0) | ||||
Pro forma adjustment to non-cash cost of land and improved development | (4.7) | ||||
Pro forma adjustment to cost of goods sold | ($25.7) |
Estimated increase to depreciation expense | ($0.3) | ||||
Estimated increase to equity compensation expense | (0.8) | ||||
Elimination of legal and professional expenses | 5.3 | ||||
Pro forma adjustment to selling and general expenses | $4.2 |
Elimination of interest expense - Pope debt | $1.7 | ||||
Pro forma adjustment to interest expense | $1.7 |
Interest expense on new debt | $8.8 | ||||
Amortization of new debt issuance costs | 0.1 | ||||
Pro forma adjustment to interest expense | $8.9 |
Net income available to unitholders | Outstanding units | Per unit amount | |||||||||
Earnings per unit, basic | $32.8 | 140,884,426 | $0.23 | ||||||||
Earnings per unit, dilutive | $32.8 | 141,225,612 | $0.23 |
Rayonier Inc. Units | Units issued in the transaction (1) | Pro Forma Total | |||||||||
Weighted-average units and equivalents outstanding, basic | 136,438,273 | 4,446,153 | 140,884,426 | ||||||||
Weighted-average units and equivalents outstanding, diluted | 136,779,459 | 4,446,153 | 141,225,612 |
-8?20$3;8T.P6BP^0"X99K>]9!:G
=$)QJ5(MLCL=_G3W='%#=C@CCGVNMJ*S66DT
MJODG9I2BT]719FT4GPT:M?S+\!\Y#V \0?=XPK$)A6[;:*)0R$PH8*J(9CT/
MBL^QFF21E)AI49.C)B^>7# KS4[5J*- K!RF_R@OC4D
M=;-":M5:M>#K//GJ.0[U W&= P9U0)8%%<)^60QTSI@!:XON@82.8)YA\&&9
M%,CRMA)DL0QL*5DFA7^Z:*78+/'6<< ^)3^-6H'M
M_&/.9*SI*H>>W(#:<\>WP0U/$B+(>WJ7YZ=2CUAP']1>+GC:>*/1R2)TLF\:
M:L4 !Q*V98Q_)F7HXR+QHF@[AJ=T=E8P-60W6K::1C=O6[7XN2&:6;&Z2HZ'
M^?X>HK[^^P0L1H.*)V!+&.JM99%A5\XX+QJAFQTJFYJ@F[0Q0NOT2(1G"?,B
MNI@6@8;F7BGWG7*/O% [E+V#:V:9])<9KLQ(O"1A[O!TS S.W_%1TK$]WR
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M*9FY,_W-]YF0W.+1'MPKKK7A*FXKR0V_AR/X/BV%N$<8T'P,C"2L87+8^+VJ/YQC%*<
MIYO7*WID()4ZGI$)
\HT;Z22_;?
M/DX_NEU8BD34%HDA\4$BX/./C91DL^* &US@CD"ZT9\)H28B9R2T90!39I.K
M",&RK) YJRZ]"M%_HYH):L%2*[%Y<*6@Z[!;O$7VLXD2?E/D>F?8)?HSDG<8
MB,% S/X",6 +K92W&'O98KLYBP[O&'O1/O9R&!9-]'U:T6?(H64LB=_(@D.Q
M)+[^6C2GMH:+9J >^K344=)6_FH8HZ3%BI+.EZII+W<(>3&"I,)9BLNAS/BL
M22"R46DT6A6S64\2+RJRQDU4=T
&!:7C *49XH&NTVLMR'!T6I,I&^$QE^0K;
MX3EJ'T4M\&>Y'WC2.4^*\*P-%GBLSU
)"V#CF."0RUY@D0\0?BJ\O^71,;7%3*/TX_8.OI)P2
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MC/_^-[-57
YCXGU
M4(?H 6:S73U\$8"B0!G/CM>BW,/-P_G5/OSL([R6TND<_KI8*:ZE'&TDN 1L
MT*DA$R 3Y+)[Q>" DV9'SVO\B/S"(K\PX-?BRCR*?V2"P[H"[9:);*"M6U_"
MH_2[WM=>[\?YEZL>N;Q^Z-WU[A_@!_+PO4=N;GMWYP^7U[]_[ON_$7)[?O=P
MW;N[_WYYJT=
@0=FOS%D]B,+9)[)F(:^Y])'1GS6A\^"#Q7B,'&)
M:&;(]U6C0Y+)<%=-A@=!!!O)9&LE6 TE8\\/X^D^#[DU),\T(%$ BP*6&,!F
MR!5;-!C*!!?/C9NB9HA"@(/F7VZVNLDUEW@.!GG(D(XZ@4< (0"IB >PNMFI
MB'ZM$GOMLP >XX$L:RB7L$"[]ZV.44]7JA8A*6G+4=_7,I\":X_I1#9VA1]'
M/!H9Y!RX5KR7.LYD=G_'%-3YW,NZ1HMDMCCT 6Q4@472E, /?3:DSB!9AT"
MD([FQEN,%L)I9>MCP)M<+82,?Q3P("*I(W":'1V:HM(I&7A0&(:!C2B:?
M.)SVN0-K8\%J,3:&R8@1/_G,D87H8RM9MB..6:,!>SF>[P&=?I'VP>Z)0M$L
M5 N)--+]:.P?MXK7-[5L7Y>:63HN:V031V1S9'<_@'^?-_(2"0[B9+! ]X(
MI!+]E>)[(A(](D=&'64*N/+LEZ5RS%EC6>:)_QN7.%!\EF&@]8,B!=V'[>(D
MKN>>)EFZ&7*],5PRVT@8 R@80-E= 5LF)5J$F,F&YP1&U6,F1QAS&0_+)KJ
M^ZRBSY%#R]ANH)$'AV*[ ?VUZ/[#FBO,0#WT::FCFZW#JV&,;A8KNCE?6::]
MW"'DQ0AN"F #)D F2!?UZYA5)$)- W4
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M-KZ_2.]_A^#51+[D/X"$$TO!D @(! 0" @&!@#@R(+#\+%XZO13!@)NC\8BI6VE74)K+'OC6$2DPH!0HI26*Y-V-\1'X^8&U8(/"G0I#!6(2+>
M=3.+6G7E#'CCWHW.2,:-2 1S:/4T34V<\."(!:2U+*B4>30D-G$9F.?69R&W'/U.#=>" X]
MZQJM@]I,Y>P=H-/F.X+X:#83@AG!?'2)W#%J*)$1Q(4&<0=;'R*0RP!D-"T0
MS*4!,SI[IU?;Z-A),O_\1[USD4Z3<5FH1Y),\0N8U6K8.0MW#3)9O6(P@":;
M8V]3$1E@G\-$NH@OO?5NTZAKNY9Z"+/"R+-:_AFQ)=;G!Z)>":H,,;3 3\,
M*3[3HMXJ !O4J_GG#)>"!_!P'EZ*)S7Q4@0#7GKD8[LEK']W]R2;+3P^]IX>
M,0=T^Q-@C4X6<8AR;@[NO\.-99 RKXN%O(WY*Z7)7SFX?B^^ &H;36V7"V7/
M4KJ163=,S# D:FMD_)EFOZGJ0X>GNZ?*&7-W=/CWX)J @8@%H#QY.1\-O!\IF3$JUPE
MJ+TFYV<9,,NYF5V8[I 4-6!>1/T_@"2RU:2D!D#$F01BJ,DRX&S2V&QM,?^R
M-X_]$5]33"UM^R.60.NOT?IN"1-GV&^.H4%(S*NDM,
A94 ]<0^&\ZG[R)-BI)XK&6C@13Z9,.HGI84WOLS_ G%W?R-_
MGQ4XWW)'WS3;.=VD;YI=O*-?D ./S847QBR+<\#QOFIT\'06LZUV1+IO,Q;"
M"NL L[HW38S,(RVRG">1F')5#$%Q/@9;_)=T;>1E#VG[2Q.?G("?_5<$'@GX
M_ NJ*3^:OD%*:$)3LZ65Y?4**^R/)S'[IIAJKWKXYF):\CDFX.PZ>P^=V2-.
MP!$^\0)X'HB. _PM$F12MAB@ZIM
ME9<@8S'
$\B4 %
M?^D. >1&(\%]TAY8T$EI!AE1FZF8B&*3.1:="]1L%01+<_N<(#L#:0B3=X3Q
M^4DU#%J!:S6/A,XJ[QWHZ-!QP+XD'RZ2G0SN2KK(FQ8WZ4!USA!B5&.4Q-M>
M\0OBWPWUV\(A7_5CW32Z9F?][QMOWOACS33J73.+)YNFT>ED,N:NT6G4,AER
MP^BVMB5&!DELJSFX7-OFTGQ]8($7^<(ZN4KS]N/4.@&F_CXU!^X3/_(&^(Q<
MPR49;;V? OTWV%._SV+C<\OR-1:YCU+DXB( 8;S(7?>1!ZOIC8#DN1U2&C4UB+!?SO0/^\B/YNLWX;8U 3.[P:FS<+1LO9
M@Q@1LS^19!&":'R<(3>-VC:#7F%W2'_BE\\PTJFEB^SZ3G:]E-8K\. 6D2H1RH#9M CO;K6
M0S ?))@TDE,209YB8J4X%YP+S@7G@G,YK;F\HIC4["6/C^;SJ&)'7EU5O=[^
M7Y$=3M'UW<%;Z'2;Z"V@ZUL%,)\UC*;6*+"0*L(888SA2 0S@GDFD_5:LUW7
MVBB5\4@+C[10ARA!&]0A".;J@EFQ2_;*!HLN3#,:1P[E.=)>.&(^4&L\\=F(
MN8']S(CMPN\,;^3L8.LU.P?VOZMY@P'OXJ@,8[Q8AF!&,".8$9$4GNGF1Q79)@EL*M5\%"37F/GR#R'_(AC&FO9(6PJD>DL_@;0M
M#.B4LW4;VQR)NT:K+4EX&]>U#C^L>)8OW5_SFR!W;(3Q7:RPYW"M.%Z%$B6B^E:4GNF9 /0(1O0'+2
M/?^_L$I'6"BQ3GQ@P#JQNH*%]'_&BA%6. ;KC=,OB<@]]"_3D!AGM A84H_C
MQ*FMM!^)A7GS"B&SU$EXYFU@'PX/#7;!H18W0X1H^!1K07B,LR8E@('A/\3I
M7A ?[P7,U)Z\YX\7 6PXX*/S'JB_D=@!?JQTVW6=?TCGZK\T1