Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 28, 2023 | |
Entity Addresses [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity Registrant Name | RAYONIER INC. | |
Entity Incorporation, State or Country Code | NC | |
Entity File Number | 1-6780 | |
Entity Tax Identification Number | 13-2607329 | |
Entity Address, Address Line One | 1 RAYONIER WAY | |
Entity Address, City or Town | WILDLIGHT | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 32097 | |
City Area Code | 904 | |
Local Phone Number | 357-9100 | |
Title of 12(b) Security | Common Shares, no par value, of Rayonier Inc. | |
Trading Symbol | RYN | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares/Units Outstanding | 148,268,558 | |
Entity Central Index key | 0000052827 | |
Current Fiscal year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Rayonier Limited Partnership | ||
Entity Addresses [Line Items] | ||
Entity Registrant Name | Rayonier, L.P. | |
Entity Incorporation, State or Country Code | DE | |
Entity File Number | 333-237246 | |
Entity Tax Identification Number | 91-1313292 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares/Units Outstanding | 2,469,173 | |
Entity Central Index key | 0001806931 | |
Current Fiscal year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
RAYONIER INC. AND SUBSIDIARIES
RAYONIER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
SALES | $ 208,865 | $ 246,346 | $ 387,947 | $ 468,387 |
Costs and Expenses | ||||
Cost of sales | (168,410) | (194,323) | (317,576) | (355,303) |
Selling and general expenses | (18,952) | (17,356) | (35,729) | (32,116) |
Other operating (expense) income, net (Note 14) | (1,401) | 801 | (3,917) | (182) |
Costs and expenses | (188,763) | (210,878) | (357,222) | (387,601) |
OPERATING INCOME | 20,102 | 35,468 | 30,725 | 80,786 |
Interest expense, net | (12,457) | (9,083) | (24,158) | (17,420) |
Interest and other miscellaneous income (expense), net | 11,644 | 206 | 21,197 | (262) |
INCOME BEFORE INCOME TAXES | 19,289 | 26,591 | 27,764 | 63,104 |
Income tax expense (Note 16) | (193) | (1,304) | (1,230) | (6,818) |
NET INCOME | 19,096 | 25,287 | 26,534 | 56,286 |
Less: Net income attributable to noncontrolling interests in the operating partnership | (318) | (546) | (492) | (1,214) |
Less: Net loss (income) attributable to noncontrolling interests in consolidated affiliates | 245 | (637) | 1,281 | (1,650) |
Net Income | 19,023 | 24,104 | 27,323 | 53,422 |
OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Foreign currency translation adjustment, net of income tax effect of $0, $0, $0 and $0 | (9,203) | (36,285) | (12,937) | (29,827) |
Cash flow hedges, net of income tax effect of $560, $4,211, $247 and $3,189 | 11,942 | 5,755 | (378) | 46,182 |
Amortization of pension and postretirement plans, net of income tax expense of $0, $0, $0 and $0 | 2 | 188 | 3 | 376 |
Total other comprehensive income (loss) | 2,741 | (30,342) | (13,312) | 16,731 |
COMPREHENSIVE INCOME (LOSS) | 21,837 | (5,055) | 13,222 | 73,017 |
Less: Comprehensive (income) loss attributable to noncontrolling interests in the operating partnership | (375) | 29 | (220) | (1,657) |
Less: Comprehensive loss attributable to noncontrolling interests in consolidated affiliates | 989 | 3,767 | 2,023 | 1,358 |
COMPREHENSIVE INCOME (LOSS) | $ 22,451 | $ (1,259) | $ 15,025 | $ 72,718 |
EARNINGS PER COMMON SHARE | ||||
Basic earnings per share attributable to Rayonier Inc. (in dollars per share) | $ 0.13 | $ 0.16 | $ 0.18 | $ 0.37 |
Diluted earnings per share attributable to Rayonier Inc. (in dollars per share) | $ 0.13 | $ 0.16 | $ 0.18 | $ 0.36 |
RAYONIER INC. AND SUBSIDIARIE_2
RAYONIER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustment, tax expense | $ 0 | $ 0 | $ 0 | $ 0 |
Cash flow hedges, net income tax | 560 | 4,211 | 247 | 3,189 |
Amortization of pension and postretirement plans, tax expense | $ 0 | $ 0 | $ 0 | $ 0 |
RAYONIER INC. AND SUBSIDIARIE_3
RAYONIER INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 88,404 | $ 114,255 |
Accounts receivable, less allowance for doubtful accounts of $67 and $74 | 31,515 | 27,837 |
Other receivables | 18,896 | 14,701 |
Inventory (Note 13) | 32,331 | 23,729 |
Prepaid expenses | 18,961 | 20,573 |
Assets held for sale (Note 19) | 4,158 | 713 |
Other current assets | 2,994 | 573 |
Total current assets | 197,259 | 202,381 |
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 3,175,006 | 3,230,904 |
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (NOTE 12) | 111,786 | 115,097 |
PROPERTY, PLANT AND EQUIPMENT | ||
Land | 6,453 | 6,453 |
Buildings | 30,948 | 31,020 |
Machinery and equipment | 6,560 | 6,568 |
Construction in progress | 1,157 | 653 |
Total property, plant and equipment, gross | 45,118 | 44,694 |
Less — accumulated depreciation | (18,631) | (17,505) |
Total property, plant and equipment, net | 26,487 | 27,189 |
RESTRICTED CASH (NOTE 18) | 4,962 | 1,152 |
RIGHT-OF-USE ASSETS | 94,563 | 97,167 |
OTHER ASSETS | 112,060 | 115,481 |
TOTAL ASSETS | 3,722,123 | 3,789,371 |
CURRENT LIABILITIES | ||
Accounts payable | 22,718 | 22,100 |
Accrued taxes | 6,975 | 3,734 |
Accrued payroll and benefits | 7,901 | 12,564 |
Accrued interest | 7,304 | 5,920 |
Deferred revenue | 33,490 | 22,762 |
Other current liabilities | 24,364 | 28,247 |
Total current liabilities | 102,752 | 95,327 |
LONG-TERM DEBT, NET (NOTE 6) | 1,512,197 | 1,514,721 |
PENSION AND OTHER POSTRETIREMENT BENEFITS (NOTE 15) | 8,402 | 8,510 |
LONG-TERM LEASE LIABILITY | 86,477 | 88,756 |
LONG-TERM DEFERRED REVENUE | 11,327 | 6,895 |
OTHER NON-CURRENT LIABILITIES | 84,721 | 88,687 |
CONTINGENCIES (NOTE 9) | ||
NONCONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP (NOTE 4) | 77,532 | 105,763 |
SHAREHOLDERS’ EQUITY | ||
Common Shares, 480,000,000 shares authorized, 148,268,443 and 147,282,631 shares issued and outstanding | 1,489,696 | 1,462,945 |
Retained earnings | 311,429 | 366,637 |
Accumulated other comprehensive income (Note 17) | 24,295 | 35,813 |
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY | 1,825,420 | 1,865,395 |
Noncontrolling interests in consolidated affiliates (Note 4) | 13,295 | 15,317 |
TOTAL SHAREHOLDERS’ EQUITY | 1,838,715 | 1,880,712 |
TOTAL LIABILITIES, NONCONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP/ REDEEMABLE OPERATING PARTNERSHIP UNITS AND SHAREHOLDERS’ EQUITY/CAPITAL | $ 3,722,123 | $ 3,789,371 |
RAYONIER INC. AND SUBSIDIARIE_4
RAYONIER INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Allowance for doubtful accounts | $ 67 | $ 74 |
SHAREHOLDERS’ EQUITY | ||
Common shares, shares authorized (in shares) | 480,000,000 | 480,000,000 |
Common shares, shares issued (in shares) | 148,268,443 | 147,282,631 |
Common shares, shares outstanding (in shares) | 148,268,443 | 147,282,631 |
RAYONIER INC. AND SUBSIDIARIE_5
RAYONIER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Shares | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interests in Consolidated Affiliates | |
Beginning balance (in shares) at Dec. 31, 2021 | 145,372,961 | |||||
Beginning balance at Dec. 31, 2021 | $ 1,815,578 | $ 1,389,073 | $ 402,307 | $ (19,604) | $ 43,802 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 30,998 | 29,986 | 1,012 | |||
Net income attributable to noncontrolling interests in the operating partnership | (669) | (669) | ||||
Dividends | [1] | (39,902) | (39,902) | |||
Issuance of shares under the “at-the-market” equity offering, net of commissions and offering costs (in shares) | 726,248 | |||||
Issuance of shares under the “at-the-market” equity offering, net of commissions and offering costs | 29,771 | $ 29,771 | ||||
Issuance of shares under incentive stock plans (in shares) | 11,364 | |||||
Issuance of shares under incentive stock plans | 415 | $ 415 | ||||
Stock-based compensation | 2,797 | $ 2,797 | ||||
Repurchase of common shares (in shares) | (5,420) | |||||
Repurchase of common shares | (214) | $ (214) | ||||
Adjustment of noncontrolling interests in the operating partnership | (2,645) | (2,645) | ||||
Conversion of units into common shares (in shares) | 2,535 | |||||
Conversion of units into common shares | 104 | $ 104 | ||||
Amortization of pension and postretirement plan liabilities | 188 | 188 | ||||
Foreign currency translation adjustment | 6,458 | 5,668 | 790 | |||
Cash flow hedges | 40,427 | 39,822 | 605 | |||
Allocation of other comprehensive income (loss) to noncontrolling interests in the operating partnership | (101) | (101) | ||||
Distributions to noncontrolling interests in consolidated affiliates | (1,566) | (1,566) | ||||
Ending balance (in shares) at Mar. 31, 2022 | 146,107,688 | |||||
Ending balance at Mar. 31, 2022 | 1,881,639 | $ 1,421,946 | 389,077 | 25,973 | 44,643 | |
Beginning balance (in shares) at Dec. 31, 2021 | 145,372,961 | |||||
Beginning balance at Dec. 31, 2021 | 1,815,578 | $ 1,389,073 | 402,307 | (19,604) | 43,802 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income attributable to noncontrolling interests in the operating partnership | (1,214) | |||||
Amortization of pension and postretirement plan liabilities | 376 | |||||
Foreign currency translation adjustment | (29,827) | |||||
Ending balance (in shares) at Jun. 30, 2022 | 146,321,732 | |||||
Ending balance at Jun. 30, 2022 | 1,820,450 | $ 1,424,329 | 382,495 | 610 | 13,016 | |
Beginning balance (in shares) at Mar. 31, 2022 | 146,107,688 | |||||
Beginning balance at Mar. 31, 2022 | 1,881,639 | $ 1,421,946 | 389,077 | 25,973 | 44,643 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 25,287 | 24,650 | 637 | |||
Net income attributable to noncontrolling interests in the operating partnership | (546) | (546) | ||||
Dividends | [1] | (42,098) | (42,098) | |||
Issuance of shares under the “at-the-market” equity offering, net of commissions and offering costs (in shares) | 0 | |||||
Issuance of shares under the “at-the-market” equity offering, net of commissions and offering costs | (63) | $ (63) | ||||
Issuance of shares under incentive stock plans (in shares) | 304,887 | |||||
Issuance of shares under incentive stock plans | 1,983 | $ 1,983 | ||||
Stock-based compensation | 4,412 | $ 4,412 | ||||
Repurchase of common shares (in shares) | (91,820) | |||||
Repurchase of common shares | (3,991) | $ (3,991) | ||||
Adjustment of noncontrolling interests in the operating partnership | 11,412 | 11,412 | ||||
Conversion of units into common shares (in shares) | 977 | |||||
Conversion of units into common shares | 42 | $ 42 | ||||
Amortization of pension and postretirement plan liabilities | 188 | 188 | ||||
Foreign currency translation adjustment | (36,285) | (34,373) | (1,912) | |||
Cash flow hedges | 5,755 | 8,247 | (2,492) | |||
Allocation of other comprehensive income (loss) to noncontrolling interests in the operating partnership | 575 | 575 | ||||
Noncontrolling interests in consolidated affiliates redemption of shares | (27,860) | (27,860) | ||||
Ending balance (in shares) at Jun. 30, 2022 | 146,321,732 | |||||
Ending balance at Jun. 30, 2022 | 1,820,450 | $ 1,424,329 | 382,495 | 610 | 13,016 | |
Beginning balance (in shares) at Dec. 31, 2022 | 147,282,631 | |||||
Beginning balance at Dec. 31, 2022 | 1,880,712 | $ 1,462,945 | 366,637 | 35,813 | 15,317 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 7,437 | 8,474 | (1,037) | |||
Net income attributable to noncontrolling interests in the operating partnership | (174) | (174) | ||||
Dividends | [2] | (42,172) | (42,172) | |||
Issuance of shares under the “at-the-market” equity offering, net of commissions and offering costs (in shares) | 400 | |||||
Issuance of shares under the “at-the-market” equity offering, net of commissions and offering costs | (10) | $ (10) | ||||
Issuance of shares under incentive stock plans (in shares) | 1,564 | |||||
Issuance of shares under incentive stock plans | 0 | |||||
Stock-based compensation | 2,499 | $ 2,499 | ||||
Repurchase of common shares (in shares) | (1,167) | |||||
Repurchase of common shares | (41) | $ (41) | ||||
Adjustment of noncontrolling interests in the operating partnership | (2,376) | (2,376) | ||||
Conversion of units into common shares (in shares) | 729,551 | |||||
Conversion of units into common shares | 23,881 | $ 23,881 | ||||
Amortization of pension and postretirement plan liabilities | 1 | 1 | ||||
Foreign currency translation adjustment | (3,733) | (3,552) | (181) | |||
Cash flow hedges | (12,319) | (12,504) | 185 | |||
Allocation of other comprehensive income (loss) to noncontrolling interests in the operating partnership | 1,110 | 1,110 | ||||
Ending balance (in shares) at Mar. 31, 2023 | 148,012,979 | |||||
Ending balance at Mar. 31, 2023 | 1,854,815 | $ 1,489,274 | 330,389 | 20,868 | 14,284 | |
Beginning balance (in shares) at Dec. 31, 2022 | 147,282,631 | |||||
Beginning balance at Dec. 31, 2022 | 1,880,712 | $ 1,462,945 | 366,637 | 35,813 | 15,317 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income attributable to noncontrolling interests in the operating partnership | (492) | |||||
Amortization of pension and postretirement plan liabilities | 3 | |||||
Foreign currency translation adjustment | (12,937) | |||||
Ending balance (in shares) at Jun. 30, 2023 | 148,268,443 | |||||
Ending balance at Jun. 30, 2023 | 1,838,715 | $ 1,489,696 | 311,429 | 24,295 | 13,295 | |
Beginning balance (in shares) at Mar. 31, 2023 | 148,012,979 | |||||
Beginning balance at Mar. 31, 2023 | 1,854,815 | $ 1,489,274 | 330,389 | 20,868 | 14,284 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 19,096 | 19,341 | (245) | |||
Net income attributable to noncontrolling interests in the operating partnership | (318) | (318) | ||||
Dividends | [2] | (42,279) | (42,279) | |||
Costs associated with the “at-the-market” (ATM) equity offering program | (71) | $ (71) | ||||
Issuance of shares under incentive stock plans (in shares) | 372,149 | |||||
Issuance of shares under incentive stock plans | 0 | $ 0 | ||||
Stock-based compensation | 4,336 | $ 4,336 | ||||
Repurchase of common shares (in shares) | (126,788) | |||||
Repurchase of common shares | (4,147) | $ (4,147) | ||||
Adjustment of noncontrolling interests in the operating partnership | 4,296 | 4,296 | ||||
Conversion of units into common shares (in shares) | 10,103 | |||||
Conversion of units into common shares | 304 | $ 304 | ||||
Amortization of pension and postretirement plan liabilities | 2 | 2 | ||||
Foreign currency translation adjustment | (9,203) | (8,790) | (413) | |||
Cash flow hedges | 11,942 | 12,273 | (331) | |||
Allocation of other comprehensive income (loss) to noncontrolling interests in the operating partnership | (58) | (58) | ||||
Ending balance (in shares) at Jun. 30, 2023 | 148,268,443 | |||||
Ending balance at Jun. 30, 2023 | $ 1,838,715 | $ 1,489,696 | $ 311,429 | $ 24,295 | $ 13,295 | |
[1] For information regarding distributions to noncontrolling interests in the operating partnership, see the Rayonier Inc. Consolidated Statements of Cash Flows and Note 4 — Noncontrolling Interests . For information regarding distributions to noncontrolling interests in the operating partnership, see the Rayonier Inc. Consolidated Statements of Cash Flows and Note 4 — Noncontrolling Interests . |
RAYONIER INC. AND SUBSIDIARIE_6
RAYONIER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | |||
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends (in dollars per share) | $ 0.285 | $ 0.285 | [1] | $ 0.285 | $ 0.27 | [2] |
Offering issuance costs | $ 24 | $ 339 | ||||
[1] For information regarding distributions to noncontrolling interests in the operating partnership, see the Rayonier Inc. Consolidated Statements of Cash Flows and Note 4 — Noncontrolling Interests . For information regarding distributions to noncontrolling interests in the operating partnership, see the Rayonier Inc. Consolidated Statements of Cash Flows and Note 4 — Noncontrolling Interests . |
RAYONIER INC. AND SUBSIDIARIE_7
RAYONIER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | ||
OPERATING ACTIVITIES | |||
Net income | $ 26,534 | $ 56,286 | |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation, depletion and amortization | 77,314 | 83,169 | |
Non-cash cost of land and improved development | 13,603 | 17,139 | |
Stock-based incentive compensation expense | 6,836 | 7,209 | |
Deferred income taxes | (2,375) | (7,272) | |
Amortization of losses from pension and postretirement plans | 3 | 376 | |
Timber write-off resulting from a casualty event | 2,302 | 0 | |
Other | (541) | (4,206) | |
Changes in operating assets and liabilities: | |||
Receivables | (10,400) | (17,060) | |
Inventories | (1,083) | (2,398) | |
Accounts payable | 112 | 6,959 | |
All other operating activities | 14,018 | 8,328 | |
CASH PROVIDED BY OPERATING ACTIVITIES | 126,323 | 148,530 | |
INVESTING ACTIVITIES | |||
Capital expenditures | (36,798) | (30,335) | |
Real estate development investments | (14,757) | (6,013) | |
Purchase of timberlands | (9,295) | (3,237) | |
Other | 4,378 | 5,112 | |
CASH USED FOR INVESTING ACTIVITIES | (56,472) | (34,473) | |
FINANCING ACTIVITIES | |||
Issuance of debt | 0 | 408,439 | |
Repayment of debt | 0 | (533,298) | |
Dividends paid on common shares | (85,189) | (81,767) | |
Distributions to noncontrolling interests in the operating partnership | (1,566) | (1,839) | |
Proceeds from the issuance of common shares under incentive stock plan | 0 | 2,561 | |
Proceeds from the issuance of common shares under the “at-the-market” (ATM) equity offering program, net of commissions and offering costs | (82) | 31,915 | |
Repurchase of common shares to pay withholding taxes on vested incentive stock awards | (4,188) | (4,204) | |
Distributions to noncontrolling interests in consolidated affiliates | 0 | (6,684) | |
CASH USED FOR FINANCING ACTIVITIES | (91,025) | (184,877) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (867) | (2,246) | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||
Change in cash, cash equivalents and restricted cash | (22,041) | (73,066) | |
Balance, beginning of year | 115,407 | 369,139 | |
Balance, end of period | 93,366 | 296,073 | |
Cash paid during the period: | |||
Interest | [1] | 20,733 | 16,932 |
Income taxes | [2] | 3,688 | 14,330 |
Non-cash investing activity: | |||
Capital assets purchased on account | 5,303 | 4,882 | |
Non-cash financing activity: | |||
Noncontrolling interests in consolidated affiliates redemption of shares | [3] | $ 0 | $ 27,860 |
[1] Interest paid is presented net of patronage paymen ts receive d of $6.2 million a n d $6.0 million for the six months ended June 30, 2023 and June 30, 2022, respectively. For additional information on patronage payments, see Note 7 — Debt in the 2022 Form 10-K. |
RAYONIER INC. AND SUBSIDIARIE_8
RAYONIER INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Patronage refunds received, netted with interest paid | $ 6,200 | $ 6,000 | ||
Noncontrolling interests in consolidated affiliates redemption of shares | [1] | $ 0 | $ 27,860 | |
New Zealand Susidiary Noncontrolling Interest Shareholder Loan Due 2026 | Excluding Timber Funds | Subsidiaries | ||||
Noncontrolling interests in consolidated affiliates redemption of shares | $ 27,900 | |||
[1]In the second quarter of 2022, the New Zealand subsidiary made a capital distribution in order to redeem certain equity interests, resulting in the recording of a loan payable by the New Zealand subsidiary in the amount of $27.9 million. |
RAYONIER, L.P. AND SUBSIDIARIES
RAYONIER, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
SALES | $ 208,865 | $ 246,346 | $ 387,947 | $ 468,387 |
Costs and Expenses | ||||
Cost of sales | (168,410) | (194,323) | (317,576) | (355,303) |
Selling and general expenses | (18,952) | (17,356) | (35,729) | (32,116) |
Other operating (expense) income, net (Note 14) | (1,401) | 801 | (3,917) | (182) |
Costs and expenses | (188,763) | (210,878) | (357,222) | (387,601) |
OPERATING INCOME | 20,102 | 35,468 | 30,725 | 80,786 |
Interest expense, net | (12,457) | (9,083) | (24,158) | (17,420) |
Interest and other miscellaneous income (expense), net | 11,644 | 206 | 21,197 | (262) |
INCOME BEFORE INCOME TAXES | 19,289 | 26,591 | 27,764 | 63,104 |
Income tax expense (Note 16) | (193) | (1,304) | (1,230) | (6,818) |
NET INCOME | 19,096 | 25,287 | 26,534 | 56,286 |
Less: Net loss (income) attributable to noncontrolling interests in consolidated affiliates | 245 | (637) | 1,281 | (1,650) |
Net Income | 19,023 | 24,104 | 27,323 | 53,422 |
OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Foreign currency translation adjustment, net of income tax effect of $0, $0, $0 and $0 | (9,203) | (36,285) | (12,937) | (29,827) |
Cash flow hedges, net of income tax effect of $560, $4,211, $247 and $3,189 | 11,942 | 5,755 | (378) | 46,182 |
Amortization of pension and postretirement plans, net of income tax expense of $0, $0, $0 and $0 | 2 | 188 | 3 | 376 |
Total other comprehensive income (loss) | 2,741 | (30,342) | (13,312) | 16,731 |
COMPREHENSIVE INCOME (LOSS) | 21,837 | (5,055) | 13,222 | 73,017 |
Less: Comprehensive loss attributable to noncontrolling interests in consolidated affiliates | 989 | 3,767 | 2,023 | 1,358 |
COMPREHENSIVE INCOME (LOSS) | 22,451 | (1,259) | 15,025 | 72,718 |
Rayonier Limited Partnership | ||||
SALES | 208,865 | 246,346 | 387,947 | 468,387 |
Costs and Expenses | ||||
Cost of sales | (168,410) | (194,323) | (317,576) | (355,303) |
Selling and general expenses | (18,952) | (17,356) | (35,729) | (32,116) |
Other operating (expense) income, net (Note 14) | (1,401) | 801 | (3,917) | (182) |
Costs and expenses | (188,763) | (210,878) | (357,222) | (387,601) |
OPERATING INCOME | 20,102 | 35,468 | 30,725 | 80,786 |
Interest expense, net | (12,457) | (9,083) | (24,158) | (17,420) |
Interest and other miscellaneous income (expense), net | 11,644 | 206 | 21,197 | (262) |
INCOME BEFORE INCOME TAXES | 19,289 | 26,591 | 27,764 | 63,104 |
Income tax expense (Note 16) | (193) | (1,304) | (1,230) | (6,818) |
NET INCOME | 19,096 | 25,287 | 26,534 | 56,286 |
Less: Net loss (income) attributable to noncontrolling interests in consolidated affiliates | 245 | (637) | 1,281 | (1,650) |
Net Income | 19,341 | 24,650 | 27,815 | 54,636 |
OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Foreign currency translation adjustment, net of income tax effect of $0, $0, $0 and $0 | (9,203) | (36,285) | (12,937) | (29,827) |
Cash flow hedges, net of income tax effect of $560, $4,211, $247 and $3,189 | 11,942 | 5,755 | (378) | 46,182 |
Amortization of pension and postretirement plans, net of income tax expense of $0, $0, $0 and $0 | 2 | 188 | 3 | 376 |
Total other comprehensive income (loss) | 2,741 | (30,342) | (13,312) | 16,731 |
COMPREHENSIVE INCOME (LOSS) | 21,837 | (5,055) | 13,222 | 73,017 |
Less: Comprehensive loss attributable to noncontrolling interests in consolidated affiliates | 989 | 3,767 | 2,023 | 1,358 |
COMPREHENSIVE INCOME (LOSS) | $ 22,826 | $ (1,288) | $ 15,245 | $ 74,375 |
EARNINGS PER UNIT (NOTE 5) | ||||
Basic earnings per unit attributable to Rayonier, L.P. (in dollars per unit) | $ 0.13 | $ 0.16 | $ 0.18 | $ 0.37 |
Diluted earnings per unit attributable to Rayonier, L.P. (in dollars per unit) | $ 0.13 | $ 0.16 | $ 0.18 | $ 0.36 |
Rayonier Limited Partnership | Limited Partners’ Capital | ||||
Costs and Expenses | ||||
Net Income | $ 19,148 | $ 24,404 | $ 27,537 | $ 54,090 |
Rayonier Limited Partnership | General Partners’ Capital | ||||
Costs and Expenses | ||||
Net Income | $ 193 | $ 247 | $ 278 | $ 546 |
RAYONIER, L.P. AND SUBSIDIARI_2
RAYONIER, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Foreign currency translation adjustment, tax expense | $ 0 | $ 0 | $ 0 | $ 0 |
Cash flow hedges, net income tax | 560 | 4,211 | 247 | 3,189 |
Amortization of pension and postretirement plans, tax expense | 0 | 0 | 0 | 0 |
Rayonier Limited Partnership | ||||
Foreign currency translation adjustment, tax expense | 0 | 0 | 0 | 0 |
Cash flow hedges, net income tax | 560 | 4,211 | 247 | 3,189 |
Amortization of pension and postretirement plans, tax expense | $ 0 | $ 0 | $ 0 | $ 0 |
RAYONIER, L.P. AND SUBSIDIARI_3
RAYONIER, L.P. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 88,404 | $ 114,255 |
Accounts receivable, less allowance for doubtful accounts of $67 and $74 | 31,515 | 27,837 |
Other receivables | 18,896 | 14,701 |
Inventory (Note 13) | 32,331 | 23,729 |
Prepaid expenses | 18,961 | 20,573 |
Assets held for sale (Note 19) | 4,158 | 713 |
Other current assets | 2,994 | 573 |
Total current assets | 197,259 | 202,381 |
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 3,175,006 | 3,230,904 |
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (NOTE 12) | 111,786 | 115,097 |
PROPERTY, PLANT AND EQUIPMENT | ||
Land | 6,453 | 6,453 |
Buildings | 30,948 | 31,020 |
Machinery and equipment | 6,560 | 6,568 |
Construction in progress | 1,157 | 653 |
Total property, plant and equipment, gross | 45,118 | 44,694 |
Less — accumulated depreciation | (18,631) | (17,505) |
Total property, plant and equipment, net | 26,487 | 27,189 |
RESTRICTED CASH (NOTE 18) | 4,962 | 1,152 |
RIGHT-OF-USE ASSETS | 94,563 | 97,167 |
OTHER ASSETS | 112,060 | 115,481 |
TOTAL ASSETS | 3,722,123 | 3,789,371 |
CURRENT LIABILITIES | ||
Accounts payable | 22,718 | 22,100 |
Accrued taxes | 6,975 | 3,734 |
Accrued payroll and benefits | 7,901 | 12,564 |
Accrued interest | 7,304 | 5,920 |
Deferred revenue | 33,490 | 22,762 |
Other current liabilities | 24,364 | 28,247 |
Total current liabilities | 102,752 | 95,327 |
LONG-TERM DEBT, NET (NOTE 6) | 1,512,197 | 1,514,721 |
PENSION AND OTHER POSTRETIREMENT BENEFITS (NOTE 15) | 8,402 | 8,510 |
LONG-TERM LEASE LIABILITY | 86,477 | 88,756 |
LONG-TERM DEFERRED REVENUE | 11,327 | 6,895 |
OTHER NON-CURRENT LIABILITIES | 84,721 | 88,687 |
CONTINGENCIES (NOTE 9) | ||
REDEEMABLE OPERATING PARTNERSHIP UNITS (NOTE 4) 2,469,173 and 3,208,827 Units outstanding, respectively | 77,532 | 105,763 |
CAPITAL | ||
Accumulated other comprehensive income (Note 17) | 24,295 | 35,813 |
TOTAL LIABILITIES, NONCONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP/ REDEEMABLE OPERATING PARTNERSHIP UNITS AND SHAREHOLDERS’ EQUITY/CAPITAL | 3,722,123 | 3,789,371 |
Rayonier Limited Partnership | ||
CURRENT ASSETS | ||
Cash and cash equivalents | 88,404 | 114,255 |
Accounts receivable, less allowance for doubtful accounts of $67 and $74 | 31,515 | 27,837 |
Other receivables | 18,896 | 14,701 |
Inventory (Note 13) | 32,331 | 23,729 |
Prepaid expenses | 18,961 | 20,573 |
Assets held for sale (Note 19) | 4,158 | 713 |
Other current assets | 2,994 | 573 |
Total current assets | 197,259 | 202,381 |
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION | 3,175,006 | 3,230,904 |
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (NOTE 12) | 111,786 | 115,097 |
PROPERTY, PLANT AND EQUIPMENT | ||
Land | 6,453 | 6,453 |
Buildings | 30,948 | 31,020 |
Machinery and equipment | 6,560 | 6,568 |
Construction in progress | 1,157 | 653 |
Total property, plant and equipment, gross | 45,118 | 44,694 |
Less — accumulated depreciation | (18,631) | (17,505) |
Total property, plant and equipment, net | 26,487 | 27,189 |
RESTRICTED CASH (NOTE 18) | 4,962 | 1,152 |
RIGHT-OF-USE ASSETS | 94,563 | 97,167 |
OTHER ASSETS | 112,060 | 115,481 |
TOTAL ASSETS | 3,722,123 | 3,789,371 |
CURRENT LIABILITIES | ||
Accounts payable | 22,718 | 22,100 |
Accrued taxes | 6,975 | 3,734 |
Accrued payroll and benefits | 7,901 | 12,564 |
Accrued interest | 7,304 | 5,920 |
Deferred revenue | 33,490 | 22,762 |
Other current liabilities | 24,364 | 28,247 |
Total current liabilities | 102,752 | 95,327 |
LONG-TERM DEBT, NET (NOTE 6) | 1,512,197 | 1,514,721 |
PENSION AND OTHER POSTRETIREMENT BENEFITS (NOTE 15) | 8,402 | 8,510 |
LONG-TERM LEASE LIABILITY | 86,477 | 88,756 |
LONG-TERM DEFERRED REVENUE | 11,327 | 6,895 |
OTHER NON-CURRENT LIABILITIES | 84,721 | 88,687 |
REDEEMABLE OPERATING PARTNERSHIP UNITS (NOTE 4) 2,469,173 and 3,208,827 Units outstanding, respectively | 77,532 | 105,763 |
CAPITAL | ||
General partners’ capital | 17,977 | 18,251 |
Limited partners’ capital | 1,779,764 | 1,806,895 |
Accumulated other comprehensive income (Note 17) | 27,679 | 40,249 |
TOTAL CONTROLLING INTEREST CAPITAL | 1,825,420 | 1,865,395 |
Noncontrolling interests in consolidated affiliates (Note 4) | 13,295 | 15,317 |
TOTAL CAPITAL | 1,838,715 | 1,880,712 |
TOTAL LIABILITIES, NONCONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP/ REDEEMABLE OPERATING PARTNERSHIP UNITS AND SHAREHOLDERS’ EQUITY/CAPITAL | $ 3,722,123 | $ 3,789,371 |
RAYONIER, L.P. AND SUBSIDIARI_4
RAYONIER, L.P. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Allowance for doubtful accounts | $ 67 | $ 74 |
Rayonier Limited Partnership | ||
CURRENT ASSETS | ||
Allowance for doubtful accounts | $ 67 | $ 74 |
SHAREHOLDERS’ EQUITY | ||
Common units outstanding (in shares) | 2,469,173 | 3,208,827 |
RAYONIER, L.P. AND SUBSIDIARI_5
RAYONIER, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||
Net (loss) income | $ 19,096 | $ 25,287 | $ 26,534 | $ 56,286 | ||
Costs associated with the “at-the-market” (ATM) equity offering program | (71) | |||||
Amortization of pension and postretirement plan liabilities | 2 | $ 1 | 188 | $ 188 | 3 | 376 |
Foreign currency translation adjustment | (9,203) | (3,733) | (36,285) | 6,458 | (12,937) | (29,827) |
Cash flow hedges | 11,942 | (12,319) | 5,755 | 40,427 | ||
Distributions to noncontrolling interests in consolidated affiliates | (1,566) | |||||
Noncontrolling interests in consolidated affiliates redemption of shares | (27,860) | |||||
Rayonier Limited Partnership | ||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||
Beginning balance | 1,854,815 | 1,880,712 | 1,881,639 | 1,815,578 | 1,880,712 | 1,815,578 |
Net (loss) income | 19,096 | 7,437 | 25,287 | 30,998 | 26,534 | 56,286 |
Distributions | (42,984) | (43,033) | (43,042) | (40,796) | ||
Costs associated with the “at-the-market” (ATM) equity offering program | (71) | (63) | ||||
Issuance of units under the “at-the-market” equity offering, net of commissions and offering costs | (10) | 29,771 | ||||
Issuance of units under incentive stock plans | 1,983 | 415 | ||||
Stock-based compensation | 4,336 | 2,499 | 4,412 | 2,797 | ||
Repurchase of units | (4,147) | (41) | (3,991) | (214) | ||
Adjustment of Redeemable Operating Partnership Units | 4,625 | (579) | 12,385 | (2,521) | ||
Conversion of units into common shares | 304 | 23,881 | 42 | 104 | ||
Amortization of pension and postretirement plan liabilities | 2 | 1 | 188 | 188 | 3 | 376 |
Foreign currency translation adjustment | (9,203) | (3,733) | (36,285) | 6,458 | (12,937) | (29,827) |
Cash flow hedges | 11,942 | (12,319) | 5,755 | 40,427 | ||
Distributions to noncontrolling interests in consolidated affiliates | (1,566) | |||||
Noncontrolling interests in consolidated affiliates redemption of shares | (27,860) | |||||
Ending balance | 1,838,715 | 1,854,815 | 1,820,450 | 1,881,639 | 1,838,715 | 1,820,450 |
Rayonier Limited Partnership | Units | General Partners’ Capital | ||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||
Beginning balance | 18,163 | 18,251 | 18,068 | 17,872 | 18,251 | 17,872 |
Net (loss) income | 193 | 85 | 246 | 300 | ||
Distributions | (429) | (431) | (430) | (408) | ||
Costs associated with the “at-the-market” (ATM) equity offering program | (1) | (1) | ||||
Issuance of units under the “at-the-market” equity offering, net of commissions and offering costs | 298 | |||||
Issuance of units under incentive stock plans | 20 | 4 | ||||
Stock-based compensation | 43 | 25 | 44 | 28 | ||
Repurchase of units | (41) | (40) | (2) | |||
Adjustment of Redeemable Operating Partnership Units | 46 | (6) | 124 | (25) | ||
Conversion of units into common shares | 3 | 239 | 0 | 1 | ||
Ending balance | 17,977 | 18,163 | 18,031 | 18,068 | 17,977 | 18,031 |
Rayonier Limited Partnership | Units | Limited Partners’ Capital | ||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||
Beginning balance | 1,798,174 | 1,806,895 | 1,788,713 | 1,769,367 | 1,806,895 | 1,769,367 |
Net (loss) income | 19,148 | 8,389 | 24,404 | 29,686 | ||
Distributions | (42,555) | (42,602) | (42,612) | (40,388) | ||
Costs associated with the “at-the-market” (ATM) equity offering program | (70) | (62) | ||||
Issuance of units under the “at-the-market” equity offering, net of commissions and offering costs | (10) | 29,473 | ||||
Issuance of units under incentive stock plans | 1,963 | 411 | ||||
Stock-based compensation | 4,293 | 2,474 | 4,368 | 2,769 | ||
Repurchase of units | (4,106) | (41) | (3,951) | (212) | ||
Adjustment of Redeemable Operating Partnership Units | 4,579 | (573) | 12,261 | (2,496) | ||
Conversion of units into common shares | 301 | 23,642 | 42 | 103 | ||
Ending balance | 1,779,764 | 1,798,174 | 1,785,126 | 1,788,713 | 1,779,764 | 1,785,126 |
Rayonier Limited Partnership | Accumulated Other Comprehensive Income | ||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||
Beginning balance | 24,194 | 40,249 | 30,215 | (15,463) | 40,249 | (15,463) |
Amortization of pension and postretirement plan liabilities | 2 | 1 | 188 | 188 | ||
Foreign currency translation adjustment | (8,790) | (3,552) | (34,373) | 5,668 | ||
Cash flow hedges | 12,273 | (12,504) | 8,247 | 39,822 | ||
Ending balance | 27,679 | 24,194 | 4,277 | 30,215 | 27,679 | 4,277 |
Rayonier Limited Partnership | Noncontrolling Interests in Consolidated Affiliates | ||||||
Increase (Decrease) in Partners' Capital [Roll Forward] | ||||||
Beginning balance | 14,284 | 15,317 | 44,643 | 43,802 | 15,317 | 43,802 |
Net (loss) income | (245) | (1,037) | 637 | 1,012 | ||
Foreign currency translation adjustment | (413) | (181) | (1,912) | 790 | ||
Cash flow hedges | (331) | 185 | (2,492) | 605 | ||
Distributions to noncontrolling interests in consolidated affiliates | (1,566) | |||||
Noncontrolling interests in consolidated affiliates redemption of shares | (27,860) | |||||
Ending balance | $ 13,295 | $ 14,284 | $ 13,016 | $ 44,643 | $ 13,295 | $ 13,016 |
RAYONIER, L.P. AND SUBSIDIARI_6
RAYONIER, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | |
Offering issuance costs | $ 24 | $ 339 | ||
Rayonier Limited Partnership | ||||
Distributions declared (in dollars per unit) | $ 0.285 | $ 0.285 | $ 0.285 | $ 0.27 |
Offering issuance costs | $ 24 | $ 339 |
RAYONIER, L.P. AND SUBSIDIARI_7
RAYONIER, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | ||
OPERATING ACTIVITIES | |||
Net income | $ 26,534 | $ 56,286 | |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation, depletion and amortization | 77,314 | 83,169 | |
Non-cash cost of land and improved development | 13,603 | 17,139 | |
Stock-based incentive compensation expense | 6,836 | 7,209 | |
Deferred income taxes | (2,375) | (7,272) | |
Amortization of losses from pension and postretirement plans | 3 | 376 | |
Timber write-off resulting from a casualty event | 2,302 | 0 | |
Other | (541) | (4,206) | |
Changes in operating assets and liabilities: | |||
Receivables | (10,400) | (17,060) | |
Inventories | (1,083) | (2,398) | |
Accounts payable | 112 | 6,959 | |
All other operating activities | 14,018 | 8,328 | |
CASH PROVIDED BY OPERATING ACTIVITIES | 126,323 | 148,530 | |
INVESTING ACTIVITIES | |||
Capital expenditures | (36,798) | (30,335) | |
Real estate development investments | (14,757) | (6,013) | |
Purchase of timberlands | (9,295) | (3,237) | |
Other | 4,378 | 5,112 | |
CASH USED FOR INVESTING ACTIVITIES | (56,472) | (34,473) | |
FINANCING ACTIVITIES | |||
Issuance of debt | 0 | 408,439 | |
Repayment of debt | 0 | (533,298) | |
Proceeds from the issuance of units under the “at-the-market” (ATM) equity offering program, net of commissions and offering costs | (82) | 31,915 | |
Distributions to noncontrolling interests in consolidated affiliates | 0 | (6,684) | |
CASH USED FOR FINANCING ACTIVITIES | (91,025) | (184,877) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (867) | (2,246) | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||
Change in cash, cash equivalents and restricted cash | (22,041) | (73,066) | |
Balance, beginning of year | 115,407 | 369,139 | |
Balance, end of period | 93,366 | 296,073 | |
Cash paid during the period: | |||
Interest | [1] | 20,733 | 16,932 |
Income taxes | [2] | 3,688 | 14,330 |
Non-cash investing activity: | |||
Capital assets purchased on account | 5,303 | 4,882 | |
Non-cash financing activity: | |||
Noncontrolling interests in consolidated affiliates redemption of shares | [3] | 0 | 27,860 |
Rayonier Limited Partnership | |||
OPERATING ACTIVITIES | |||
Net income | 26,534 | 56,286 | |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Depreciation, depletion and amortization | 77,314 | 83,169 | |
Non-cash cost of land and improved development | 13,603 | 17,139 | |
Stock-based incentive compensation expense | 6,836 | 7,209 | |
Deferred income taxes | (2,375) | (7,272) | |
Amortization of losses from pension and postretirement plans | 3 | 376 | |
Timber write-off resulting from a casualty event | 2,302 | 0 | |
Other | (541) | (4,206) | |
Changes in operating assets and liabilities: | |||
Receivables | (10,400) | (17,060) | |
Inventories | (1,083) | (2,398) | |
Accounts payable | 112 | 6,959 | |
All other operating activities | 14,018 | 8,328 | |
CASH PROVIDED BY OPERATING ACTIVITIES | 126,323 | 148,530 | |
INVESTING ACTIVITIES | |||
Capital expenditures | (36,798) | (30,335) | |
Real estate development investments | (14,757) | (6,013) | |
Purchase of timberlands | (9,295) | (3,237) | |
Other | 4,378 | 5,112 | |
CASH USED FOR INVESTING ACTIVITIES | (56,472) | (34,473) | |
FINANCING ACTIVITIES | |||
Issuance of debt | 0 | 408,439 | |
Repayment of debt | 0 | (533,298) | |
Distributions on units | (86,755) | (83,606) | |
Proceeds from the issuance of units under incentive stock plan | 0 | 2,561 | |
Proceeds from the issuance of units under the “at-the-market” (ATM) equity offering program, net of commissions and offering costs | (82) | 31,915 | |
Repurchase of units to pay withholding taxes on vested incentive stock awards | (4,188) | (4,204) | |
Distributions to noncontrolling interests in consolidated affiliates | 0 | (6,684) | |
CASH USED FOR FINANCING ACTIVITIES | (91,025) | (184,877) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (867) | (2,246) | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | |||
Change in cash, cash equivalents and restricted cash | (22,041) | (73,066) | |
Balance, beginning of year | 115,407 | 369,139 | |
Balance, end of period | 93,366 | 296,073 | |
Cash paid during the period: | |||
Interest | [4] | 20,733 | 16,932 |
Income taxes | [5] | 3,688 | 14,330 |
Non-cash investing activity: | |||
Capital assets purchased on account | 5,303 | 4,882 | |
Non-cash financing activity: | |||
Noncontrolling interests in consolidated affiliates redemption of shares | [6] | $ 0 | $ 27,860 |
[1] Interest paid is presented net of patronage paymen ts receive d of $6.2 million a n d $6.0 million for the six months ended June 30, 2023 and June 30, 2022, respectively. For additional information on patronage payments, see Note 7 — Debt in the 2022 Form 10-K. Interest paid is presented net of patronage paymen ts received of $6.2 million an d $6.0 million for the six months ended June 30, 2023 and June 30, 2022, respectively. For additional information on patronage payments, see Note 7 — Debt in the 2022 Form 10-K. |
RAYONIER, L.P. AND SUBSIDIARI_8
RAYONIER, L.P. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | ||
Patronage refunds received, netted with interest paid | $ 6,200 | $ 6,000 | |
Noncontrolling interests in consolidated affiliates redemption of shares | [1] | 0 | 27,860 |
Rayonier Limited Partnership | |||
Patronage refunds received, netted with interest paid | 6,200 | 6,000 | |
Noncontrolling interests in consolidated affiliates redemption of shares | [2] | $ 0 | $ 27,860 |
[1]In the second quarter of 2022, the New Zealand subsidiary made a capital distribution in order to redeem certain equity interests, resulting in the recording of a loan payable by the New Zealand subsidiary in the amount of $27.9 million.[2]In the second quarter of 2022, the New Zealand subsidiary made a capital distribution in order to redeem certain equity interests, resulting in the recording of a loan payable by the New Zealand subsidiary in the amount of $27.9 million. |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The unaudited consolidated financial statements and notes thereto of Rayonier Inc. and its subsidiaries and Rayonier, L.P. have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). The Rayonier Inc. and Rayonier, L.P. year-end balance sheet information was derived from audited financial statements not included herein. In the opinion of management, these financial statements and notes reflect any adjustments (all of which are normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. These statements and notes should be read in conjunction with the financial statements and supplementary data included in our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC (the “2022 Form 10-K”). As of June 30, 2023, the Company owned a 98.4% interest in the Operating Partnership, with the remaining 1.6% interest owned by limited partners of the Operating Partnership. As the sole general partner of the Operating Partnership, Rayonier Inc. has exclusive control of the day-to-day management of the Operating Partnership. SUMMARY OF UPDATES TO SIGNIFICANT ACCOUNTING POLICIES For a full description of our other significant accounting policies, see Note 1 — Summary of Significant Accounting Policies in our 2022 Form 10-K. REVENUE RECOGNITION NON-TIMBER SALES Carbon Capture and Storage Sales Carbon capture and storage (“CCS”) sales are primarily comprised of revenue generated from granting land access and the right to inject, sequester and permanently store carbon dioxide in a subsurface area. CCS contracts contain variable consideration arrangements, which may include variable durations, rates, access acres and carbon volumes. The determination of the transaction price and the allocation of the transaction price to the performance obligations may require significant judgment and is based on management’s estimate of the most likely amount of consideration we expect to receive as of the reporting date. Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal of the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The estimation of variable consideration requires us to make certain judgments and assumptions regarding the amount and timing of future payments, which may be impacted by factors such as changes in market conditions, competition or other factors beyond our control. As a result, actual amounts of variable consideration could differ from our estimates. We regularly review our estimates of variable consideration and, if necessary, adjust the transaction price and related revenue recognition accordingly. Any such adjustments are recorded in the period in which the estimate is revised. NEW ACCOUNTING STANDARDS There have been no recently adopted or pending accounting pronouncements which are applicable or are expected to have a material impact on our consolidated financial condition, results of operations, or cash flows. SUBSEQUENT EVENTS On July 24, 2023, the New Zealand subsidiary renewed its NZ$20 million working capital facility, extending its maturity date to June 30, 2024. The facility is available for short-term operating cash flow needs of the New Zealand subsidiary. This facility holds a variable interest rate indexed to the 90-day New Zealand Bank Bill rate (“BKBM”). The margins are set for the term of the facility. See Note 6 — Debt for additional information. |
SEGMENT AND GEOGRAPHICAL INFORM
SEGMENT AND GEOGRAPHICAL INFORMATION | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHICAL INFORMATION | SEGMENT AND GEOGRAPHICAL INFORMATION Sales between operating segments are made based on estimated fair market value, and intercompany sales, purchases and profits (losses) are eliminated in consolidation. We evaluate financial performance based on segment operating income and Adjusted Earnings Before Interest, Taxes, Depreciation, Depletion and Amortization (“Adjusted EBITDA”). Asset information is not reported by segment, as we do not produce asset information by segment internally. Operating income as presented in the Consolidated Statements of Income and Comprehensive Income is equal to segment income. Certain income (loss) items in the Consolidated Statements of Income and Comprehensive Income are not allocated to segments. These items, which include interest expense, miscellaneous income (expense) and income tax benefit (expense), are not considered by management to be part of segment operations and are included under “unallocated interest expense and other.” The following tables summarize the segment information for the three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, Six Months Ended June 30, SALES 2023 2022 2023 2022 Southern Timber $68,310 $66,271 $140,152 $143,035 Pacific Northwest Timber 32,317 39,157 66,736 85,437 New Zealand Timber 60,898 78,882 105,004 130,271 Real Estate 32,041 34,402 48,317 68,597 Trading 15,415 27,683 27,984 41,145 Intersegment Eliminations (a) (116) (49) (246) (98) Total $208,865 $246,346 $387,947 $468,387 (a) Primarily consists of log marketing fees paid to our Trading segment from our Southern Timber and Pacific Northwest Timber segments for marketing log export sales. Three Months Ended June 30, Six Months Ended June 30, OPERATING INCOME 2023 2022 2023 2022 Southern Timber $21,708 $24,067 $43,931 $54,409 Pacific Northwest Timber (2,376) 2,943 (5,919) 9,550 New Zealand Timber (a) 2,373 7,981 1,710 13,373 Real Estate 8,649 11,023 9,532 21,204 Trading 67 (444) 409 (93) Corporate and Other (10,319) (10,102) (18,938) (17,657) Total Operating Income 20,102 35,468 30,725 80,786 Unallocated interest expense and other (b) (813) (8,877) (2,961) (17,682) Total Income before Income Taxes $19,289 $26,591 $27,764 $63,104 (a) The six months ended June 30, 2023 includes a $2.3 million timber write-off resulting from a casualty event. Timber write-offs resulting from casualty events are recorded within the Consolidated Statements of Income and Comprehensive Income under the caption “Cost of Sales.” (b) The three and six months ended June 30, 2023 include $11.4 million and $20.5 million, respectively, of net recoveries associated with legal settlements. Three Months Ended June 30, Six Months Ended June 30, DEPRECIATION, DEPLETION AND AMORTIZATION 2023 2022 2023 2022 Southern Timber $21,868 $14,657 $42,478 $32,716 Pacific Northwest Timber 9,242 11,316 19,892 26,232 New Zealand Timber 5,927 6,901 10,382 11,891 Real Estate 2,235 2,564 3,738 11,709 Corporate and Other 443 313 824 621 Total $39,715 $35,751 $77,314 $83,169 Three Months Ended June 30, Six Months Ended June 30, NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT 2023 2022 2023 2022 Real Estate $9,395 $11,780 $13,603 $17,139 Total $9,395 $11,780 $13,603 $17,139 |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE PERFORMANCE OBLIGATIONS We recognize revenue when control of promised goods or services (“performance obligations”) is transferred to customers, in an amount that reflects the consideration expected in exchange for those goods or services (“transaction price”). Unsatisfied performance obligations as of June 30, 2023 are primarily due to advances on stumpage contracts, unearned license revenue, unearned carbon capture and storage revenue and post-closing obligations on real estate sales. Of these performance obligations, $33.5 million is expected to be recognized within the next twelve months, with the remaining $11.3 million expected to be recognized thereafter as we satisfy our performance obligations. We generally collect payment within a year of satisfying performance obligations and therefore have elected not to adjust revenues for a financing component. CONTRACT BALANCES The timing of revenue recognition, invoicing and cash collections results in trade receivables and deferred revenue (contract liabilities) on the Consolidated Balance Sheets. Trade receivables are recorded when we have an unconditional right to consideration for completed performance under the contract. Contract liabilities relate to payments received in advance of performance under the contract. Contract liabilities are recognized as revenue as (or when) we perform under the contract. The following table contains contract balances recorded in the Consolidated Balance Sheets at June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 Balance Sheet Location Contract assets Trade receivables, net (a) $31,515 $27,837 Trade receivables Contract liabilities Deferred revenue, current (b) 33,490 22,762 Deferred revenue Deferred revenue, non-current (c) 11,327 6,895 Long-term deferred revenue (a) The increase in trade receivables was primarily driven by timing of sales in our timber segments. (b) The increase in deferred revenue, current is driven by the timing of renewals of hunting contracts and the current portion of a carbon capture and storage contract entered into in the first quarter of 2023, partially offset by the satisfaction of post-closing obligations on real estate sales and stumpage contracts. (c) The increase in deferred revenue, non-current is primarily driven by a carbon capture and storage contract entered into in the first quarter of 2023. The following table summarizes revenue recognized during the three and six months ended June 30, 2023 and 2022 that was included in the contract liability balance at the beginning of each year: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Revenue recognized from contract liability balance at the beginning of the year (a) $6,335 $4,968 $17,735 $12,501 (a) Revenue recognized was primarily from hunting licenses, the use of advances on pay-as-cut timber sales and the satisfaction of post closing obligations on real estate sales. The following tables present our revenue from contracts with customers disaggregated by product type for the three and six months ended June 30, 2023 and 2022: Three Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Elim. Total June 30, 2023 Pulpwood $23,855 $2,204 $8,364 — $1,442 — $35,865 Sawtimber 33,846 27,781 51,829 — 13,510 — 126,966 Hardwood 706 — — — — — 706 Total Timber Sales 58,407 29,985 60,193 — 14,952 — 163,537 License Revenue, Primarily from Hunting 5,186 203 68 — — — 5,457 Other Non-Timber/Carbon Revenue 4,717 2,129 637 — — — 7,483 Agency Fee Income — — — — 347 — 347 Total Non-Timber Sales 9,903 2,332 705 — 347 — 13,287 Improved Development — — — 12,233 — — 12,233 Rural — — — 15,626 — — 15,626 Timberland & Non-Strategic — — — 255 — — 255 Deferred Revenue/Other (a) — — — 3,568 — — 3,568 Total Real Estate Sales — — — 31,682 — — 31,682 Revenue from Contracts with Customers 68,310 32,317 60,898 31,682 15,299 — 208,506 Lease Revenue — — — 359 — — 359 Intersegment — — — — 116 (116) — Total Revenue $68,310 $32,317 $60,898 $32,041 $15,415 ($116) $208,865 Three Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Elim. Total June 30, 2022 Pulpwood $30,770 $3,572 $10,851 — $2,999 — $48,192 Sawtimber 21,744 34,310 64,247 — 24,319 — 144,620 Hardwood 5,706 — — — — — 5,706 Total Timber Sales 58,220 37,882 75,098 — 27,318 — 198,518 License Revenue, Primarily from Hunting 6,506 129 87 — — — 6,722 Other Non-Timber/Carbon Revenue 1,545 1,146 3,697 — — — 6,388 Agency Fee Income — — — — 316 — 316 Total Non-Timber Sales 8,051 1,275 3,784 — 316 — 13,426 Improved Development — — — 11,566 — — 11,566 Rural — — — 23,420 — — 23,420 Deferred Revenue/Other (a) — — — (907) — — (907) Total Real Estate Sales — — — 34,079 — — 34,079 Revenue from Contracts with Customers 66,271 39,157 78,882 34,079 27,634 — 246,023 Lease Revenue — — — 323 — — 323 Intersegment — — — — 49 (49) — Total Revenue $66,271 $39,157 $78,882 $34,402 $27,683 ($49) $246,346 (a) Includes deferred revenue adjustments, revenue true-ups and marketing fees related to Improved Development sales. Six Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Elim. Total June 30, 2023 Pulpwood $50,638 $5,919 $14,446 — $2,881 — $73,884 Sawtimber 68,389 57,562 89,512 — 24,176 — 239,639 Hardwood 1,826 — — — — — 1,826 Total Timber Sales 120,853 63,481 103,958 — 27,057 — 315,349 License Revenue, Primarily From Hunting 10,454 340 123 — — — 10,917 Other Non-Timber/Carbon Revenue 8,845 2,915 923 — — — 12,683 Agency Fee Income — — — — 681 — 681 Total Non-Timber Sales 19,299 3,255 1,046 — 681 — 24,281 Improved Development — — — 17,035 — — 17,035 Rural — — — 22,125 — — 22,125 Timberland & Non-Strategic — — — 1,892 — — 1,892 Deferred Revenue/Other (a) — — — 6,661 — — 6,661 Total Real Estate Sales — — — 47,713 — — 47,713 Revenue from Contracts with Customers 140,152 66,736 105,004 47,713 27,738 — 387,343 Lease Revenue — — — 604 — — 604 Intersegment — — — — 246 (246) — Total Revenue $140,152 $66,736 $105,004 $48,317 $27,984 ($246) $387,947 Six Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Elim. Total June 30, 2022 Pulpwood $68,381 $6,491 $18,446 — $4,523 — $97,841 Sawtimber 49,260 76,524 106,347 — 35,857 — 267,988 Hardwood 11,555 — — — — — 11,555 Total Timber Sales 129,196 83,015 124,793 — 40,380 — 377,384 License Revenue, Primarily from Hunting 11,182 245 148 — — — 11,575 Other Non-Timber/Carbon Revenue 2,657 2,177 5,330 — — — 10,164 Agency Fee Income — — — — 667 — 667 Total Non-Timber Sales 13,839 2,422 5,478 — 667 — 22,406 Improved Development — — — 16,532 — — 16,532 Rural — — — 40,369 — — 40,369 Timberland & Non-Strategic — — — 11,400 — — 11,400 Deferred Revenue/Other (a) — — — (271) — — (271) Total Real Estate Sales — — — 68,030 — — 68,030 Revenue from Contracts with Customers 143,035 85,437 130,271 68,030 41,047 — 467,820 Lease Revenue — — — 567 — — 567 Intersegment — — — — 98 (98) — Total Revenue $143,035 $85,437 $130,271 $68,597 $41,145 ($98) $468,387 (a) Includes deferred revenue adjustments, revenue true-ups and marketing fees related to Improved Development sales. The following tables present our timber sales disaggregated by contract type for the three and six months ended June 30, 2023 and 2022: Three Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Trading Total June 30, 2023 Stumpage Pay-as-Cut $30,493 — — — $30,493 Stumpage Lump Sum 281 — — — 281 Total Stumpage 30,774 — — — 30,774 Delivered Wood (Domestic) 25,437 26,996 12,559 89 65,081 Delivered Wood (Export) 2,196 2,989 47,634 14,863 67,682 Total Delivered 27,633 29,985 60,193 14,952 132,763 Total Timber Sales $58,407 $29,985 $60,193 $14,952 $163,537 June 30, 2022 Stumpage Pay-as-Cut $21,326 — — — $21,326 Stumpage Lump Sum 90 85 — — 175 Total Stumpage 21,416 85 — — 21,501 Delivered Wood (Domestic) 33,248 33,956 18,051 1,104 86,359 Delivered Wood (Export) 3,556 3,841 57,047 26,214 90,658 Total Delivered 36,804 37,797 75,098 27,318 177,017 Total Timber Sales $58,220 $37,882 $75,098 $27,318 $198,518 Six Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Trading Total June 30, 2023 Stumpage Pay-as-Cut $60,970 — — — $60,970 Stumpage Lump Sum 387 624 — — 1,011 Total Stumpage 61,357 624 — — 61,981 Delivered Wood (Domestic) 54,850 56,164 24,154 491 135,659 Delivered Wood (Export) 4,646 6,693 79,804 26,566 117,709 Total Delivered 59,496 62,857 103,958 27,057 253,368 Total Timber Sales $120,853 $63,481 $103,958 $27,057 $315,349 June 30, 2022 Stumpage Pay-as-Cut $57,532 — — — $57,532 Stumpage Lump Sum 90 5,473 — — 5,563 Total Stumpage 57,622 5,473 — — 63,095 Delivered Wood (Domestic) 65,376 73,402 31,532 1,729 172,039 Delivered Wood (Export) 6,198 4,140 93,261 38,651 142,250 Total Delivered 71,574 77,542 124,793 40,380 314,289 Total Timber Sales $129,196 $83,015 $124,793 $40,380 $377,384 |
NONCONTROLLING INTERESTS
NONCONTROLLING INTERESTS | 6 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
NONCONTROLLING INTERESTS | NONCONTROLLING INTERESTS NONCONTROLLING INTERESTS IN CONSOLIDATED AFFILIATES Matariki Forestry Group We maintain a 77% controlling financial interest in Matariki Forestry Group (the “New Zealand subsidiary”), a joint venture that owns or leases approximately 419,000 legal acres of New Zealand timberland. Accordingly, we consolidate the New Zealand subsidiary’s balance sheet and results of operations. Income attributable to the New Zealand subsidiary’s 23% noncontrolling interests is reflected as an adjustment to income in our Consolidated Statements of Income and Comprehensive Income under the caption “Net income attributable to noncontrolling interests in consolidated affiliates.” Rayonier New Zealand Limited (“RNZ”), a wholly-owned subsidiary, serves as the manager of the New Zealand subsidiary. NONCONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP Noncontrolling interests in the operating partnership relate to the third-party ownership of Redeemable Operating Partnership Units. Net income attributable to the noncontrolling interests in the operating partnership is computed by applying the weighted average Redeemable Operating Partnership Units outstanding during the period as a percentage of the weighted average total units outstanding to the Operating Partnership’s net income for the period. If a noncontrolling unitholder redeems a unit for a registered common share of Rayonier or cash, the noncontrolling interests in the operating partnership will be reduced and the Company’s share in the Operating Partnership will be increased by the fair value of each security at the time of redemption. The following table sets forth the Company’s noncontrolling interests in the operating partnership: Three Months Ended June 30, Six Months Ended 2023 2022 2023 2022 Beginning noncontrolling interests in the operating partnership $82,461 $136,239 $105,763 $133,823 Adjustment of noncontrolling interests in the operating partnership (4,296) (11,412) (1,920) (8,767) Conversions of Redeemable Operating Partnership Units to Common Shares (304) (42) (24,185) (146) Net Income attributable to noncontrolling interests in the operating partnership 318 546 492 1,214 Other Comprehensive Income (Loss) attributable to noncontrolling interests in the operating partnership 58 (575) (1,052) (474) Distributions to noncontrolling interests in the operating partnership (705) (945) (1,566) (1,839) Total noncontrolling interests in the operating partnership $77,532 $123,811 $77,532 $123,811 |
EARNINGS PER SHARE AND PER UNIT
EARNINGS PER SHARE AND PER UNIT | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE AND PER UNIT | EARNINGS PER SHARE AND PER UNIT The following table provides details of the calculations of basic and diluted earnings per common share of the Company: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Earnings per common share - basic Numerator: Net Income $19,096 $25,287 $26,534 $56,286 Less: Net income attributable to noncontrolling interests in the operating partnership (318) (546) (492) (1,214) Less: Net loss (income) attributable to noncontrolling interests in consolidated affiliates 245 (637) 1,281 (1,650) Net income attributable to Rayonier Inc. $19,023 $24,104 $27,323 $53,422 Denominator: Denominator for basic earnings per common share - weighted average shares 148,218,436 146,257,311 147,800,265 145,846,026 Basic earnings per common share attributable to Rayonier Inc.: $0.13 $0.16 $0.18 $0.37 Earnings per common share - diluted Numerator: Net Income $19,096 $25,287 $26,534 $56,286 Less: Net loss (income) attributable to noncontrolling interests in consolidated affiliates 245 (637) 1,281 (1,650) Net income attributable to Rayonier Inc., before net income attributable to noncontrolling interests in the operating partnership $19,341 $24,650 $27,815 $54,636 Denominator: Denominator for basic earnings per common share - weighted average shares 148,218,436 146,257,311 147,800,265 145,846,026 Add: Dilutive effect of: Stock options — 8,100 943 7,664 Performance shares, restricted shares and restricted stock units 269,994 666,653 441,204 730,773 Noncontrolling interests in operating partnership units 2,476,761 3,312,315 2,785,928 3,313,543 Denominator for diluted earnings per common share - adjusted weighted average shares 150,965,191 150,244,379 151,028,340 149,898,006 Diluted earnings per common share attributable to Rayonier Inc.: $0.13 $0.16 $0.18 $0.36 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Anti-dilutive shares excluded from the computations of diluted earnings per common share: Stock options, performance shares, restricted shares and restricted stock units 241,316 109,515 152,992 54,884 Total 241,316 109,515 152,992 54,884 The following table provides details of the calculations of basic and diluted earnings per unit of the Operating Partnership: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Earnings per unit - basic Numerator: Net Income $19,096 $25,287 $26,534 $56,286 Less: Net loss (income) attributable to noncontrolling interests in consolidated affiliates 245 (637) 1,281 (1,650) Net income available to unitholders $19,341 $24,650 $27,815 $54,636 Denominator: Denominator for basic earnings per unit - weighted average units 150,695,197 149,569,626 150,586,193 149,159,569 Basic earnings per unit attributable to Rayonier, L.P.: $0.13 $0.16 $0.18 $0.37 Earnings per unit - diluted Numerator: Net Income $19,096 $25,287 $26,534 $56,286 Less: Net loss (income) attributable to noncontrolling interests in consolidated affiliates 245 (637) 1,281 (1,650) Net income available to unitholders $19,341 $24,650 $27,815 $54,636 Denominator: Denominator for basic earnings per unit - weighted average units 150,695,197 149,569,626 150,586,193 149,159,569 Add: Dilutive effect of unit equivalents: Stock options — 8,100 943 7,664 Performance shares, restricted shares and restricted stock units 269,994 666,653 441,204 730,773 Denominator for diluted earnings per unit - adjusted weighted average units 150,965,191 150,244,379 151,028,340 149,898,006 Diluted earnings per unit attributable to Rayonier, L.P.: $0.13 $0.16 $0.18 $0.36 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Anti-dilutive unit equivalents excluded from the computations of diluted earnings per unit: Stock options, performance shares, restricted shares and restricted stock units 241,316 109,515 152,992 54,884 Total 241,316 109,515 152,992 54,884 |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Our debt consisted of the following at June 30, 2023: June 30, 2023 Debt Senior Notes due 2031 at a fixed interest rate of 2.75% $450,000 2015 Term Loan borrowings due 2028 at a variable interest rate of 6.76% at June 30, 2023 350,000 2022 Incremental Term Loan borrowings due 2027 at a variable interest rate of 6.76% at June 30, 2023 250,000 2016 Incremental Term Loan borrowings due 2026 at a variable interest rate of 6.81% at June 30, 2023 200,000 2021 Incremental Term Loan borrowings due 2029 at a variable interest rate of 6.71% at June 30, 2023 200,000 New Zealand subsidiary noncontrolling interests shareholder loan due 2026 at a fixed interest rate of 3.64% (a) 24,511 New Zealand subsidiary noncontrolling interests shareholder loan due 2027 at a fixed interest rate of 6.48% (a) 24,511 New Zealand subsidiary noncontrolling interests shareholder loan due 2025 at a fixed interest rate of 2.95% (a) 21,009 Total principal debt 1,520,031 Less: Unamortized discounts (2,940) Less: Deferred financing costs (4,894) Total long-term debt $1,512,197 (a) Except for changes in the New Zealand foreign exchange rate, there have been no adjustments to the carrying value of the shareholder loans since inception. The following table contains information on the outstanding variable rate debt as of June 30, 2023: Debt Periodic Interest Rate (a) Effective Fixed Interest Rate (b) 2015 Term Loan Daily Simple SOFR + 1.70% 3.03 % 2022 Incremental Term Loan Daily Simple SOFR + 1.70% 5.38 % 2016 Incremental Term Loan Daily Simple SOFR + 1.75% 2.40 % 2021 Incremental Term Loan Daily Simple SOFR + 1.65% 1.46 % (a) Includes credit spread adjustment of 0.1%. (b) Effective interest rate is after consideration of interest rate swaps and estimated patronage refunds. Principal payments due during the next five years and thereafter are as follows: Total 2023 — 2024 — 2025 21,009 2026 224,511 2027 274,511 Thereafter 1,000,000 Total Debt $1,520,031 2023 DEBT ACTIVITY U.S. Debt During the six months ended June 30, 2023, we made no borrowings or repayments on our Revolving Credit Facility. At June 30, 2023, we had available borrowings of $296.2 million under the Revolving Credit Facility, net of $3.8 million to secure our outstanding letters of credit. New Zealand Debt In June 2023, the New Zealand subsidiary temporarily extended its NZ$20 million working capital facility for an additional 1-month term. During the six months ended June 30, 2023, the New Zealand subsidiary made no borrowings and repayments on its working capital facility (the “New Zealand Working Capital Facility”). At June 30, 2023, the New Zealand subsidiary had NZ$20.0 million of available borrowings under its working capital facility. See the subsequent events section of Note 1 — B asis of Presentation for information about the renewal of the New Zealand subsidiary’s working capital facility subsequent to June 30, 2023. DEBT COVENANTS In connection with our 2015 Term Loan Facility, 2016 Incremental Term Loan Facility, 2021 Incremental Term Loan Agreement, 2022 Incremental Term Loan Agreement and Revolving Credit Facility, customary covenants must be met, the most significant of which include interest coverage and leverage ratios. The covenants listed below, which are the most significant financial covenants in effect as of June 30, 2023, are calculated on a trailing 12-month basis: Covenant Requirement Actual Ratio Favorable Covenant EBITDA to consolidated interest expense should not be less than 2.5 to 1 7.4 to 1 4.9 Covenant debt to covenant net worth plus covenant debt shall not exceed 65 % 46 % 19 % In addition to these financial covenants listed above, the Senior Notes due 2031, 2015 Term Loan Facility, 2016 Incremental Term Loan Facility, 2021 Incremental Term Loan Facility, 2022 Incremental Term Loan Facility, and Revolving Credit Facility include customary covenants that limit the incurrence of debt and the disposition of assets, among others. At June 30, 2023, we were in compliance with all applicable covenants. |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES We are exposed to market risk related to potential fluctuations in foreign currency exchange rates and interest rates. We use derivative financial instruments to mitigate the financial impact of exposure to these risks. Accounting for derivative financial instruments is governed by ASC Topic 815, Derivatives and Hedging , (“ASC 815”). In accordance with ASC 815, we record our derivative instruments at fair value as either assets or liabilities in the Consolidated Balance Sheets. Changes in the instruments’ fair value are accounted for based on their intended use. Gains and losses on derivatives that are designated and qualify for cash flow hedge accounting are recorded as a component of accumulated other comprehensive income (“AOCI”) and reclassified into earnings when the hedged transaction materializes. Gains and losses on derivatives that are designated and qualify for net investment hedge accounting are recorded as a component of AOCI and will not be reclassified into earnings until the investment is partially or completely liquidated. The changes in the fair value of derivatives not designated as hedging instruments and those which are no longer effective as hedging instruments, are recognized immediately in earnings. FOREIGN CURRENCY EXCHANGE AND OPTION CONTRACTS Our New Zealand subsidiary’s domestic sales and operating expenses are predominately denominated in New Zealand dollars, while its export sales, shareholder distributions and ocean freight payments are predominately denominated in U.S. dollars. To the extent New Zealand dollar costs exceed New Zealand dollar revenues (the “foreign exchange exposure”), the New Zealand subsidiary manages the foreign exchange exposure through the use of derivative financial instruments. It typically hedges a portion of export sales receipts to cover 50% to 90% of the projected foreign exchange exposure for the following 12 months, up to 75% for the forward 12 to 18 months and up to 50% for the forward 18 to 24 months. Additionally, it will occasionally hedge export sales receipts to cover up to 50% of the foreign exchange exposure for the forward 24 to 36 months and up to 25% of the foreign exchange exposure for the forward 36 to 48 months when the New Zealand dollar is at a cyclical low versus the U.S. dollar. The New Zealand subsidiary’s trading operations typically hedge a portion of export sales receipts to cover the projected foreign exchange exposure for the following three months. As of June 30, 2023, foreign currency exchange contracts and foreign currency option contracts had maturity dates through Ma y 2026 . Foreign currency exchange and option contracts hedging foreign currency risk qualify for cash flow hedge accounting. We may de-designate these cash flow hedge relationships in advance or at the occurrence of the forecasted transaction. The portion of gains or losses on the derivative instrument previously AOCI for de-designated hedges remains in AOCI until the forecasted transaction affects earnings. Changes in the value of derivative instruments after de-designation are recorded in earnings. INTEREST RATE PRODUCTS We are exposed to cash flow interest rate risk on our variable-rate debt and on anticipated debt issuances. We use variable-to-fixed interest rate swaps and forward-starting interest rate swap agreements to hedge this exposure. For these derivative instruments, we report the gains/losses from the fluctuations in the fair market value of the hedges in AOCI and reclassify them to earnings as interest expense in the same period in which the hedged interest payments affect earnings. To the extent we de-designate or terminate a cash flow hedging relationship and the associated hedged item continues to exist, any unrealized gain or loss of the cash flow hedge at the time of de-designation remains in AOCI and is amortized using the straight-line method through interest expense over the remaining life of the hedged item. To the extent the associated hedged item is no longer effective, the gain or loss is reclassified out of AOCI to earnings immediately. INTEREST RATE SWAPS The following table contains information on the outstanding interest rate swaps as of June 30, 2023: Outstanding Interest Rate Swaps (a) Date Entered Into Term Notional Amount Related Debt Facility Fixed Rate of Swap Bank Margin on Debt (b) Total Effective Interest Rate (c) August 2015 9 years $170,000 Term Credit Agreement 2.10 % 1.70 % 3.80 % August 2015 9 years 180,000 Term Credit Agreement 2.26 % 1.70 % 3.96 % April 2016 10 years 100,000 Incremental Term Loan 1.50 % 1.75 % 3.25 % April 2016 10 years 100,000 Incremental Term Loan 1.51 % 1.75 % 3.26 % May 2021 7 years 200,000 2021 Incremental Term Loan Facility 0.67 % 1.65 % 2.32 % December 2022 5 years 100,000 2022 Incremental Term Loan Facility 3.72 % 1.70 % 5.42 % (a) All interest rate swaps have been designated as interest rate cash flow hedges and qualify for hedge accounting. (b) Includes the SOFR Credit Spread Adjustment component of 0.1%. (c) Rate is before estimated patronage payments. FORWARD-STARTING INTEREST RATE SWAPS In March 2023, we modified our benchmark rates from LIBOR to Daily Simple SOFR for our forward-starting interest rates swaps, resulting in slightly favorable fixed rates. In May 2023, we entered into a new $50 million forward-starting interest rate swap, benchmarked to the Daily Simple SOFR. The following table contains information on the outstanding forward-starting interest rate swaps as of June 30, 2023: 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 April 2020 4 years $100,000 0.78 % Term Credit Agreement August 2024 N/A May 2020 4 years 50,000 0.64 % Term Credit Agreement August 2024 N/A May 2023 4 years 50,000 3.29 % Term Credit Agreement August 2024 N/A (a) All forward-starting interest rate swaps have been designated as interest rate cash flow hedges and qualify for hedge accounting. The following tables demonstrate the impact, gross of tax, of our derivatives on the Consolidated Statements of Income and Comprehensive Income for the three and six months ended June 30, 2023 and 2022: Three Months Ended Income Statement Location 2023 2022 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other comprehensive income (loss) $188 ($14,438) Other operating (expense) income, net (1,577) 86 Foreign currency option contracts Other comprehensive income (loss) (561) (686) Other operating (expense) income, net (48) — Interest rate products Other comprehensive income (loss) 17,695 14,636 Interest expense, net (4,314) 1,948 Six Months Ended Income Statement Location 2023 2022 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other comprehensive income (loss) $4,001 ($10,909) Other operating (expense) income, net (4,005) 70 Foreign currency option contracts Other comprehensive income (loss) (831) (550) Other operating (expense) income, net (48) — Interest rate products Other comprehensive income (loss) 8,035 49,765 Interest expense, net (7,777) 4,618 During the next 12 months, the amount of the June 30, 2023 AOCI balance, net of tax, expected to be reclassified into earnings is a gain of approximately $24.1 million. The following table contains details of the expected reclassified amounts into earnings: Amount expected to be reclassified into earnings in next 12 months Derivatives designated as cash flow hedges: Foreign currency exchange contracts ($3,108) Foreign currency option contracts (324) Interest rate products (a) 27,564 Total estimated gain on derivatives contracts $24,132 (a) These reclassified amounts are expected to fully offset variable interest rate payments made to debt holders, resulting in no net impact on our earnings or cash flows. The following table contains the notional amounts of the derivative financial instruments recorded in the Consolidated Balance Sheets: Notional Amount June 30, 2023 December 31, 2022 Derivatives designated as cash flow hedges: Foreign currency exchange contracts $124,600 $138,250 Foreign currency option contracts 82,000 78,000 Interest rate swaps 850,000 850,000 Forward-starting interest rate swaps 200,000 150,000 The following table contains the fair values of the derivative financial instruments recorded in the Consolidated Balance Sheets at June 30, 2023 and December 31, 2022. Changes in balances of derivative financial instruments are recorded as operating activities in the Consolidated Statements of Cash Flows: Location on Balance Sheet Fair Value Assets / (Liabilities) (a) June 30, 2023 December 31, 2022 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other current assets $21 $25 Other assets 544 1,303 Other current liabilities (4,338) (5,457) Other non-current liabilities (768) (410) Foreign currency option contracts Other current assets 15 66 Other assets 1,182 2,131 Other current liabilities (465) (347) Other non-current liabilities (1,044) (1,281) Interest rate swaps Other assets 59,192 60,843 Other non-current liabilities — (51) Forward-starting interest rate swaps Other assets 13,441 11,939 Total derivative contracts: Other current assets $36 $91 Other assets 74,359 76,216 Total derivative assets $74,395 $76,307 Other current liabilities (4,803) (5,804) Other non-current liabilities (1,812) (1,742) Total derivative liabilities ($6,615) ($7,546) (a) See Note 8 — Fair Value Measurements for further information on the fair value of our derivatives including their classification within the fair value hierarchy. OFFSETTING DERIVATIVES Derivative financial instruments are presented at their gross fair values in the Consolidated Balance Sheets. Our derivative financial instruments are not subject to master netting arrangements, which would allow the right of offset. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS FAIR VALUE OF FINANCIAL INSTRUMENTS A three-level hierarchy that prioritizes the inputs used to measure fair value was established in the Accounting Standards Codification as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than quoted prices included in Level 1. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The following table presents the carrying amount and estimated fair values of our financial instruments as of June 30, 2023 and December 31, 2022, using market information and what we believe to be appropriate valuation methodologies under GAAP: June 30, 2023 December 31, 2022 Asset (Liability) (a) Carrying Fair Value Carrying Fair Value Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $88,404 $88,404 — $114,255 $114,255 — Restricted cash (b) 4,962 4,962 — 1,152 1,152 — Long-term debt (c) (1,512,197) — (1,429,173) (1,514,721) — (1,438,736) Interest rate swaps (d) 59,192 — 59,192 60,792 — 60,792 Forward-starting interest rate swaps (d) 13,441 — 13,441 11,939 — 11,939 Foreign currency exchange contracts (d) (4,541) — (4,541) (4,539) — (4,539) Foreign currency option contracts (d) (312) — (312) 569 — 569 Noncontrolling interests in the operating partnership (e) 77,532 — 77,532 105,763 — 105,763 (a) We did not have Level 3 assets or liabilities at June 30, 2023 and December 31, 2022. (b) Restricted cash represents proceeds from like-kind exchange sales deposited with a third-party intermediary and cash held in escrow. See Note 18 — Restricted Cash for additional information. (c) The carrying amount of long-term debt is presented net of deferred financing costs and unamortized discounts on non-revolving debt. See Note 6 — Debt for additional information. (d) See Note 7 — Derivative Financial Instruments and Hedging Activities for information regarding the Consolidated Balance Sheets classification of our derivative financial instruments. (e) Noncontrolling interests in the operating partnership is neither an asset nor liability and is classified as temporary equity in the Company’s Consolidated Balance Sheets. This relates to the ownership of Rayonier, L.P. units by various individuals and entities other than the Company. See Note 4 — Noncontrolling Interests for additional information. We use the following methods and assumptions in estimating the fair value of our financial instruments: Cash and cash equivalents and Restricted cash — The carrying amount is equal to fair market value. Debt — The fair value of fixed rate debt is based upon quoted market prices for debt with similar terms and maturities. The variable rate debt adjusts with changes in the market rate, therefore the carrying value approximates fair value. Interest rate swap agreements — The fair value of interest rate contracts is determined by discounting the expected future cash flows, for each instrument, at prevailing interest rates. Foreign currency exchange contracts — The fair value of foreign currency exchange contracts is determined by a mark-to-market valuation, which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate. Foreign currency option contracts — The fair value of foreign currency option contracts is based on a mark-to-market calculation using the Black-Scholes option pricing model. Noncontrolling interests in the operating partnership — The fair value of noncontrolling interests in the operating partnership is determined based on the period-end closing price of Rayonier Inc. common shares. |
CONTINGENCIES
CONTINGENCIES | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIESWe have been named as a defendant in various lawsuits and claims arising in the normal course of business. While we have procured reasonable and customary insurance covering risks normally occurring in connection with our businesses, we have in certain cases retained some risk through the operation of large deductible insurance plans, primarily in the areas of executive risk, property, automobile and general liability. These pending lawsuits and claims, either individually or in the aggregate, are not expected to have a material adverse effect on our financial position, results of operations, or cash flow. |
ENVIRONMENTAL AND NATURAL RESOU
ENVIRONMENTAL AND NATURAL RESOURCE DAMAGE LIABILITIES | 6 Months Ended |
Jun. 30, 2023 | |
Environmental Remediation Obligations [Abstract] | |
ENVIRONMENTAL AND NATURAL RESOURCE DAMAGE LIABILITIES | ENVIRONMENTAL AND NATURAL RESOURCE DAMAGE LIABILITIES Various federal and state environmental laws in the states in which we operate place cleanup or restoration liability on the current and former owners of affected real estate. These laws are often a source of “strict liability,” meaning that an owner or operator need not necessarily have caused, or even been aware of, the release of contaminated materials. Similarly, there are certain environmental laws that allow state, federal, and tribal trustees (collectively, the “Trustees”) to bring suit against property owners to recover damage for injuries to natural resources. Like the liability that attaches to current property owners in the cleanup context, liability for natural resource damages (“NRD”) can attach to a property simply because an injury to natural resources resulted from releases of contaminated materials on or from the owner’s property, regardless of culpability for the release. Changes in environmental and NRD liabilities from December 31, 2022 to June 30, 2023 are shown below: Port Gamble, WA Non-current portion at December 31, 2022 $14,418 Plus: Current portion 1,175 Total Balance at December 31, 2022 15,593 Expenditures charged to liabilities (223) Decrease to liabilities (a) (20) Total Balance at June 30, 2023 15,350 Less: Current portion (2,371) Non-current portion at June 30, 2023 $12,979 (a) Reflects revised environmental and NRD cost estimates recorded during the six months ended June 30, 2023. It is expected that the upland mill site cleanup and NRD restoration will occur over the next one Commitments in our 2022 Form 10-K. We do not currently anticipate any material loss in excess of the amounts accrued; however we are not able to estimate a possible loss or range of loss, if any, in excess of the established liabilities. Our future remediation expenses may be affected by a number of uncertainties including, but not limited to, the difficulty in estimating the extent and method of remediation, the evolving nature of environmental regulations, and the availability and application of technology. We do not expect the resolution of such uncertainties to have a material adverse effect on our consolidated financial position or liquidity. |
GUARANTEES
GUARANTEES | 6 Months Ended |
Jun. 30, 2023 | |
Guarantees [Abstract] | |
GUARANTEES | GUARANTEES We provide financial guarantees as required by creditors, insurance programs, and various governmental agencies. As of June 30, 2023, the following financial guarantees were outstanding: Financial Commitments (a) Maximum Potential Standby letters of credit (b) $3,779 Surety bonds (c) 21,687 Total financial commitments $25,466 (a) We have not recorded any liabilities for these financial commitments in our Consolidated Balance Sheets. The guarantees are not subject to measurement, as the guarantees are dependent on our own performance. (b) Approximately $2.9 million of the standby letters of credit serve as credit support for real estate construction in our Wildlight development project. The remaining letters of credit support various insurance related agreements, primarily workers’ compensation. These letters of credit will expire at various dates during 2023 and will be renewed as required. (c) Surety bonds are issued primarily to secure performance obligations related to various operational activities and to provide collateral for our Wildlight development project in Nassau County, Florida and our Heartwood development project in Richmond Hill, Georgia. These surety bonds expire at various dates during 2023, 2024, and 2025 and are expected to be renewed as required. |
HIGHER AND BETTER USE TIMBERLAN
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS | 6 Months Ended |
Jun. 30, 2023 | |
Real Estate [Abstract] | |
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS | HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTSWe routinely assess potential alternative uses of our timberlands, as some properties may become more valuable for development, residential, recreation or other purposes. We periodically transfer, via a sale or contribution from the real estate investment trust (“REIT”) entities to taxable REIT subsidiaries (“TRS”), higher and better use (“HBU”) timberlands to enable land-use entitlement, development or marketing activities. We also acquire HBU properties in connection with timberland acquisitions. These properties are managed as timberlands until sold or developed. While the majority of HBU sales involve rural and recreational land, we also selectively pursue various land-use entitlements on certain properties for residential, commercial and industrial development in order to enhance the long-term value of such properties. For selected development properties, we also invest in targeted infrastructure improvements, such as roadways and utilities, to accelerate the marketability and improve the value of such properties. Changes in higher and better use timberlands and real estate development investments from December 31, 2022 to June 30, 2023 are shown below: Higher and Better Use Timberlands and Real Estate Development Investments Land and Timber Development Investments Total Non-current portion at December 31, 2022 $91,374 $23,723 $115,097 Plus: Current portion (a) 408 17,501 17,909 Total Balance at December 31, 2022 91,782 41,224 133,006 Non-cash cost of land and improved development (1,055) (10,337) (11,392) Amortization of parcel real estate development investments — (5,257) (5,257) Timber depletion from harvesting activities and basis of timber sold in real estate sales (672) — (672) Capitalized real estate development investments (b) — 19,045 19,045 Capital expenditures (silviculture) 23 — 23 Intersegment transfers 553 — 553 Total Balance at June 30, 2023 90,631 44,675 135,306 Less: Current portion (a) (1,346) (22,174) (23,520) Non-current portion at June 30, 2023 $89,285 $22,501 $111,786 (a) The current portion of Higher and Better Use Timberlands and Real Estate Development Investments is recorded in Inventory. See Note 13 — Inventory for additional information. (b) Capitalized real estate development investments include $0.4 million of capitalized interest and $4.3 million of parcel real estate development investments. Parcel real estate development investments represent investments made for specific lots and/or commercial parcels that are currently under contract or expected to be ready for market within a year. |
INVENTORY
INVENTORY | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORY | INVENTORY As of June 30, 2023 and December 31, 2022, our inventory consisted entirely of finished goods, as follows: June 30, 2023 December 31, 2022 Finished goods inventory Real estate inventory (a) $23,520 $17,909 Log inventory 8,508 5,347 Carbon unit inventory (b) 303 473 Total inventory $32,331 $23,729 (a) Represents the cost of HBU real estate (including capitalized development investments) under contract to be sold as well as the cost of HBU real estate deferred until post-closing obligations are satisfied. See Note 12 — Higher And Better Use Timberlands and Real Estate Development Investments for additional information. (b) Represents the basis in New Zealand carbon units intended to be sold in the next 12 months. |
OTHER OPERATING (EXPENSE) INCOM
OTHER OPERATING (EXPENSE) INCOME, NET | 6 Months Ended |
Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | |
OTHER OPERATING (EXPENSE) INCOME, NET | OTHER OPERATING (EXPENSE) INCOME, NET Other operating (expense) income, net consisted of the following: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (Loss) gain on foreign currency remeasurement, net of cash flow hedges ($1,674) $1,249 ($4,157) $677 Gain on sale or disposal of property and equipment 35 6 37 31 Equity loss related to Bainbridge Landing LLC joint venture — (145) — (370) Miscellaneous income (expense), net 238 (309) 203 (520) Total ($1,401) $801 ($3,917) ($182) |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2023 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS We have one qualified non-contributory defined benefit pension plan covering a portion of our employees and an unfunded plan that provides benefits in excess of amounts allowable under current tax law in the qualified plans. We closed enrollment in the pension plans to salaried employees hired after December 31, 2005. Effective December 31, 2016, we froze benefits for all employees participating in the pension plan. In lieu of the pension plan, we provide those employees with an enhanced 401(k) plan match similar to what is currently provided to employees hired after December 31, 2005. Employee benefit plan liabilities are calculated using actuarial estimates and management assumptions. These estimates are based on historical information, along with certain assumptions about future events. Changes in assumptions, as well as changes in actual experience, could cause the estimates to change. In December 2022, the Rayonier Board of Directors approved the resolution to terminate the Defined Benefit Plan and notified impacted parties of the termination and alternative distribution options. The Defined Benefit Plan was terminated on February 28, 2023. In conjunction with the termination of the Defined Benefit Plan, we also plan to terminate the unfunded plan and distribute all benefits in accordance with Section 409A of We expect to make cash contributions of approximately $7.6 million during the settlement process in order to fund the Defined Benefit Plan on a plan termination basis. The Defined Benefit Plan will be settled upon completion of lump sum distributions and purchase of annuity contracts. The settlement is expected to be completed by the end of Q2 2024. The Excess Benefit Plan will be settled entirely with lump sum payments upon termination with expected cash contributions in 2024 of approximately $1.3 million. Projected cash contributions are an estimate, as actual amounts will be dependent upon the nature and timing of participant settlements and interest rates, as well as prevailing market conditions. The net pension and postretirement benefit (credits) costs that have been recorded are shown in the following table: Components of Net Periodic Benefit (Credit) Cost Income Statement Location Pension Postretirement Three Months Ended Three Months Ended 2023 2022 2023 2022 Service cost Selling and general expenses — — $1 $2 Interest cost Interest and other miscellaneous income (expense), net 844 609 17 13 Expected return on plan assets (a) Interest and other miscellaneous income (expense), net (887) (872) — — Amortization of losses Interest and other miscellaneous income (expense), net 1 184 — 4 Net periodic benefit (credit) cost ($42) ($79) $18 $19 Components of Net Periodic Benefit (Credit) Cost Income Statement Location Pension Postretirement Six Months Ended Six Months Ended 2023 2022 2023 2022 Service cost Selling and general expenses — — $2 $3 Interest cost Interest and other miscellaneous income (expense), net 1,689 1,217 35 26 Expected return on plan assets (a) Interest and other miscellaneous income (expense), net (1,776) (1,743) — — Amortization of losses Interest and other miscellaneous income (expense), net 3 369 — 7 Net periodic benefit (credit) cost ($84) ($157) $37 $36 (a) The weighted-average expected long-term rate of return on plan assets used in computing 2023 net periodic benefit cost for pension benefit s is 5.0%. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Rayonier is a REIT under the Internal Revenue Code and therefore generally does not pay U.S. federal or state income tax. As of June 30, 2023, Rayonier owns a 98.4% inter est in the Operating Partnership and conducts substantially all of its timberland operations through the Operating Partnership. The taxable income or loss generated by the Operating Partnership is passed through and reported to its unit holders (including the Company) on a Schedule K-1 for inclusion in each unitholder’s income tax return. Certain operations, including log trading and certain real estate activities, such as the entitlement, development and sale of HBU properties, are conducted through our TRS. The TRS subsidiaries are subject to United States federal and state corporate income tax. The New Zealand timber operations are conducted by the New Zealand subsidiary, which is subject to corporate-level tax at 28% in New Zealand and is treated as a partnership for U.S. income tax purposes. PROVISION FOR INCOME TAXES The Company’s tax expense is principally related to corporate-level tax in New Zealand and non-resident withholding tax on repatriation of earnings from New Zealand. The following table contains the income tax expense recognized on the Consolidated Statements of Income and Comprehensive Income: Three Months Ended Six Months Ended 2023 2022 2023 2022 Income tax expense ($193) ($1,304) ($1,230) ($6,818) ANNUAL EFFECTIVE TAX RATE The Company’s effective tax rate after discrete items is below the 21.0% U.S. statutory rate due to tax benefits associated with being a REIT. The following table contains the Company’s annualized effective tax rate after discrete items: Six Months Ended 2023 2022 Annualized effective tax rate after discrete items 3.9 % 9.2 % |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The following table summarizes the changes in AOCI by component for the six months ended June 30, 2023 and the year ended December 31, 2022. All amounts are presented net of tax and exclude portions attributable to noncontrolling interests. Foreign currency translation (loss) gains Net investment hedges of New Zealand subsidiary Cash flow hedges Employee benefit plans Total Rayonier, L.P. Allocation to Operating Partnership Total Rayonier Inc. Balance as of December 31, 2021 $4,215 $1,321 ($9,163) ($11,836) ($15,463) ($4,141) ($19,604) Other comprehensive income (loss) before reclassifications (22,282) — 78,166 (a) 874 56,758 (1,323) 55,435 Amounts reclassified from accumulated other comprehensive income (loss) — — (1,799) 753 (b) (1,046) 1,028 (18) Net other comprehensive income (loss) (22,282) — 76,367 1,627 55,712 (295) 55,417 Balance as of December 31, 2022 ($18,067) $1,321 $67,204 ($10,209) $40,249 ($4,436) $35,813 Other comprehensive (loss) income before reclassifications (12,342) — 9,792 (a) — (2,550) 88 (2,462) Amounts reclassified from accumulated other comprehensive income — — (10,023) 3 (b) (10,020) 964 (9,056) Net other comprehensive income (loss) (12,342) — (231) 3 (12,570) 1,052 (11,518) Balance as of June 30, 2023 ($30,409) $1,321 $66,973 ($10,206) $27,679 ($3,384) $24,295 (a) The six months ended June 30, 2023 includes $8.0 million of other comprehensive income related to interest rate products. The year ended December 31, 2022 included $75.0 million of other comprehensive income re lated to interest rate products. See Note 7 — Derivative Financial Instruments and Hedging Activities for additional information. (b) This component of other comprehensive income is included in the computation of net periodic pension and post-retirement costs. See Note 15 — Employee Benefit Plans for additional information. The following table presents details of the amounts reclassified in their entirety from AOCI to net income for the six months ended June 30, 2023 and June 30, 2022: Details about accumulated other comprehensive income (loss) components Amount reclassified from accumulated other comprehensive income (loss) Affected line item in the Income Statement June 30, 2023 June 30, 2022 Realized (gain) loss on foreign currency exchange contracts ($4,005) $71 Other operating expense, net Realized loss on foreign currency option contracts (48) — Other operating expense, net Noncontrolling interests 932 (16) Comprehensive loss (income) attributable to noncontrolling interests Realized (gain) loss on interest rate contracts (7,777) 4,617 Interest expense Income tax effect from net gain (loss) on foreign currency contracts 875 (15) Income tax expense Net (gain) loss on cash flow hedges reclassified from accumulated other comprehensive income ($10,023) $4,657 |
RESTRICTED CASH
RESTRICTED CASH | 6 Months Ended |
Jun. 30, 2023 | |
Restricted Cash and Investments [Abstract] | |
RESTRICTED CASH | RESTRICTED CASH Restricted cash, excluding Timber Funds includes cash deposited with a like-kind exchange (“LKE”) intermediary. In order to qualify for LKE treatment, the proceeds from real estate sales must be deposited with a third-party intermediary. These proceeds are accounted for as restricted cash until a suitable replacement property is acquired. In the event LKE purchases are not completed, the proceeds are returned to the Company after 180 days and reclassified as available cash. Additionally, restricted cash, excluding Timber Funds, includes cash balances held in escrow as collateral for certain contractual obligations related to our Heartwood development project as well as cash held in escrow for real estate sales. Restricted cash, Timber Funds includes the portion of proceeds from Fund II Timberland Dispositions required to be distributed to noncontrolling interests. The following table provides a reconciliation of cash, cash equivalents and restricted cash in the Consolidated Balance Sheets that sum to the total of the same such amounts in the Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022: Six Months Ended June 30, 2023 2022 Restricted cash, excluding Timber Funds: Restricted cash deposited with LKE intermediary $1,646 $13,704 Restricted cash held in escrow 3,316 625 Total restricted cash, excluding Timber Funds 4,962 14,329 Restricted cash, Timber Funds — 1,464 Cash and cash equivalents 88,404 280,280 Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows $93,366 $296,073 |
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE | 6 Months Ended |
Jun. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
ASSETS HELD FOR SALE | ASSETS HELD FOR SALEAssets held for sale is composed of properties under contract and expected to be sold within 12 months that also meet the other relevant held-for-sale criteria in accordance with ASC 360-10-45-9. As of June 30, 2023 and December 31, 2022, the basis in properties meeting this classification was $4.2 million and $0.7 million, respectively. Since the basis in these properties was less than the fair value, including costs to sell, no impairment was recognized. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income (loss) attributable to parent | $ 19,023 | $ 24,104 | $ 27,323 | $ 53,422 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The unaudited consolidated financial statements and notes thereto of Rayonier Inc. and its subsidiaries and Rayonier, L.P. have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (the “SEC”). The Rayonier Inc. and Rayonier, L.P. year-end balance sheet information was derived from audited financial statements not included herein. In the opinion of management, these financial statements and notes reflect any adjustments (all of which are normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented. These statements and notes should be read in conjunction with the financial statements and supplementary data included in our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC (the “2022 Form 10-K”). |
REVENUE RECOGNITION | REVENUE RECOGNITION NON-TIMBER SALES Carbon Capture and Storage Sales Carbon capture and storage (“CCS”) sales are primarily comprised of revenue generated from granting land access and the right to inject, sequester and permanently store carbon dioxide in a subsurface area. CCS contracts contain variable consideration arrangements, which may include variable durations, rates, access acres and carbon volumes. The determination of the transaction price and the allocation of the transaction price to the performance obligations may require significant judgment and is based on management’s estimate of the most likely amount of consideration we expect to receive as of the reporting date. Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal of the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. The estimation of variable consideration requires us to make certain judgments and assumptions regarding the amount and timing of future payments, which may be impacted by factors such as changes in market conditions, competition or other factors beyond our control. As a result, actual amounts of variable consideration could differ from our estimates. We regularly review our estimates of variable consideration and, if necessary, adjust the transaction price and related revenue recognition accordingly. Any such adjustments are recorded in the period in which the estimate is revised. PERFORMANCE OBLIGATIONS We recognize revenue when control of promised goods or services (“performance obligations”) is transferred to customers, in an amount that reflects the consideration expected in exchange for those goods or services (“transaction price”). Unsatisfied performance obligations as of June 30, 2023 are primarily due to advances on stumpage contracts, unearned license revenue, unearned carbon capture and storage revenue and post-closing obligations on real estate sales. Of these performance obligations, $33.5 million is expected to be recognized within the next twelve months, with the remaining $11.3 million expected to be recognized thereafter as we satisfy our performance obligations. We generally collect payment within a year of satisfying performance obligations and therefore have elected not to adjust revenues for a financing component. CONTRACT BALANCES The timing of revenue recognition, invoicing and cash collections results in trade receivables and deferred revenue (contract liabilities) on the Consolidated Balance Sheets. Trade receivables are recorded when we have an unconditional right to consideration for completed performance under the contract. Contract liabilities relate to payments received in advance of performance under the contract. Contract liabilities are recognized as revenue as (or when) we perform under the contract. |
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS There have been no recently adopted or pending accounting pronouncements which are applicable or are expected to have a material impact on our consolidated financial condition, results of operations, or cash flows. |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On July 24, 2023, the New Zealand subsidiary renewed its NZ$20 million working capital facility, extending its maturity date to June 30, 2024. The facility is available for short-term operating cash flow needs of the New Zealand subsidiary. This facility holds a variable interest rate indexed to the 90-day New Zealand Bank Bill rate (“BKBM”). The margins are set for the term of the facility. See Note 6 — Debt for additional information. |
SEGMENT REPORTING | Sales between operating segments are made based on estimated fair market value, and intercompany sales, purchases and profits (losses) are eliminated in consolidation. We evaluate financial performance based on segment operating income and Adjusted Earnings Before Interest, Taxes, Depreciation, Depletion and Amortization (“Adjusted EBITDA”). Asset information is not reported by segment, as we do not produce asset information by segment internally. Operating income as presented in the Consolidated Statements of Income and Comprehensive Income is equal to segment income. Certain income (loss) items in the Consolidated Statements of Income and Comprehensive Income are not allocated to segments. These items, which include interest expense, miscellaneous income (expense) and income tax benefit (expense), are not considered by management to be part of segment operations and are included under “unallocated interest expense and other.” |
DERIVATIVE | Accounting for derivative financial instruments is governed by ASC Topic 815, Derivatives and Hedging |
FAIR VALUE OF FINANCIAL INSTRUMENTS | We use the following methods and assumptions in estimating the fair value of our financial instruments: Cash and cash equivalents and Restricted cash — The carrying amount is equal to fair market value. Debt — The fair value of fixed rate debt is based upon quoted market prices for debt with similar terms and maturities. The variable rate debt adjusts with changes in the market rate, therefore the carrying value approximates fair value. Interest rate swap agreements — The fair value of interest rate contracts is determined by discounting the expected future cash flows, for each instrument, at prevailing interest rates. Foreign currency exchange contracts — The fair value of foreign currency exchange contracts is determined by a mark-to-market valuation, which estimates fair value by discounting the difference between the contracted forward price and the current forward price for the residual maturity of the contract using a risk-free interest rate. Foreign currency option contracts — The fair value of foreign currency option contracts is based on a mark-to-market calculation using the Black-Scholes option pricing model. Noncontrolling interests in the operating partnership — The fair value of noncontrolling interests in the operating partnership is determined based on the period-end closing price of Rayonier Inc. common shares. |
SEGMENT AND GEOGRAPHICAL INFO_2
SEGMENT AND GEOGRAPHICAL INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following tables summarize the segment information for the three and six months ended June 30, 2023 and 2022: Three Months Ended June 30, Six Months Ended June 30, SALES 2023 2022 2023 2022 Southern Timber $68,310 $66,271 $140,152 $143,035 Pacific Northwest Timber 32,317 39,157 66,736 85,437 New Zealand Timber 60,898 78,882 105,004 130,271 Real Estate 32,041 34,402 48,317 68,597 Trading 15,415 27,683 27,984 41,145 Intersegment Eliminations (a) (116) (49) (246) (98) Total $208,865 $246,346 $387,947 $468,387 (a) Primarily consists of log marketing fees paid to our Trading segment from our Southern Timber and Pacific Northwest Timber segments for marketing log export sales. Three Months Ended June 30, Six Months Ended June 30, OPERATING INCOME 2023 2022 2023 2022 Southern Timber $21,708 $24,067 $43,931 $54,409 Pacific Northwest Timber (2,376) 2,943 (5,919) 9,550 New Zealand Timber (a) 2,373 7,981 1,710 13,373 Real Estate 8,649 11,023 9,532 21,204 Trading 67 (444) 409 (93) Corporate and Other (10,319) (10,102) (18,938) (17,657) Total Operating Income 20,102 35,468 30,725 80,786 Unallocated interest expense and other (b) (813) (8,877) (2,961) (17,682) Total Income before Income Taxes $19,289 $26,591 $27,764 $63,104 (a) The six months ended June 30, 2023 includes a $2.3 million timber write-off resulting from a casualty event. Timber write-offs resulting from casualty events are recorded within the Consolidated Statements of Income and Comprehensive Income under the caption “Cost of Sales.” (b) The three and six months ended June 30, 2023 include $11.4 million and $20.5 million, respectively, of net recoveries associated with legal settlements. Three Months Ended June 30, Six Months Ended June 30, DEPRECIATION, DEPLETION AND AMORTIZATION 2023 2022 2023 2022 Southern Timber $21,868 $14,657 $42,478 $32,716 Pacific Northwest Timber 9,242 11,316 19,892 26,232 New Zealand Timber 5,927 6,901 10,382 11,891 Real Estate 2,235 2,564 3,738 11,709 Corporate and Other 443 313 824 621 Total $39,715 $35,751 $77,314 $83,169 Three Months Ended June 30, Six Months Ended June 30, NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT 2023 2022 2023 2022 Real Estate $9,395 $11,780 $13,603 $17,139 Total $9,395 $11,780 $13,603 $17,139 |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Contract Balances | The following table contains contract balances recorded in the Consolidated Balance Sheets at June 30, 2023 and December 31, 2022: June 30, 2023 December 31, 2022 Balance Sheet Location Contract assets Trade receivables, net (a) $31,515 $27,837 Trade receivables Contract liabilities Deferred revenue, current (b) 33,490 22,762 Deferred revenue Deferred revenue, non-current (c) 11,327 6,895 Long-term deferred revenue (a) The increase in trade receivables was primarily driven by timing of sales in our timber segments. (b) The increase in deferred revenue, current is driven by the timing of renewals of hunting contracts and the current portion of a carbon capture and storage contract entered into in the first quarter of 2023, partially offset by the satisfaction of post-closing obligations on real estate sales and stumpage contracts. (c) The increase in deferred revenue, non-current is primarily driven by a carbon capture and storage contract entered into in the first quarter of 2023. The following table summarizes revenue recognized during the three and six months ended June 30, 2023 and 2022 that was included in the contract liability balance at the beginning of each year: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Revenue recognized from contract liability balance at the beginning of the year (a) $6,335 $4,968 $17,735 $12,501 (a) Revenue recognized was primarily from hunting licenses, the use of advances on pay-as-cut timber sales and the satisfaction of post closing obligations on real estate sales. |
Schedule of Disaggregation of Revenue by Product | The following tables present our revenue from contracts with customers disaggregated by product type for the three and six months ended June 30, 2023 and 2022: Three Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Elim. Total June 30, 2023 Pulpwood $23,855 $2,204 $8,364 — $1,442 — $35,865 Sawtimber 33,846 27,781 51,829 — 13,510 — 126,966 Hardwood 706 — — — — — 706 Total Timber Sales 58,407 29,985 60,193 — 14,952 — 163,537 License Revenue, Primarily from Hunting 5,186 203 68 — — — 5,457 Other Non-Timber/Carbon Revenue 4,717 2,129 637 — — — 7,483 Agency Fee Income — — — — 347 — 347 Total Non-Timber Sales 9,903 2,332 705 — 347 — 13,287 Improved Development — — — 12,233 — — 12,233 Rural — — — 15,626 — — 15,626 Timberland & Non-Strategic — — — 255 — — 255 Deferred Revenue/Other (a) — — — 3,568 — — 3,568 Total Real Estate Sales — — — 31,682 — — 31,682 Revenue from Contracts with Customers 68,310 32,317 60,898 31,682 15,299 — 208,506 Lease Revenue — — — 359 — — 359 Intersegment — — — — 116 (116) — Total Revenue $68,310 $32,317 $60,898 $32,041 $15,415 ($116) $208,865 Three Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Elim. Total June 30, 2022 Pulpwood $30,770 $3,572 $10,851 — $2,999 — $48,192 Sawtimber 21,744 34,310 64,247 — 24,319 — 144,620 Hardwood 5,706 — — — — — 5,706 Total Timber Sales 58,220 37,882 75,098 — 27,318 — 198,518 License Revenue, Primarily from Hunting 6,506 129 87 — — — 6,722 Other Non-Timber/Carbon Revenue 1,545 1,146 3,697 — — — 6,388 Agency Fee Income — — — — 316 — 316 Total Non-Timber Sales 8,051 1,275 3,784 — 316 — 13,426 Improved Development — — — 11,566 — — 11,566 Rural — — — 23,420 — — 23,420 Deferred Revenue/Other (a) — — — (907) — — (907) Total Real Estate Sales — — — 34,079 — — 34,079 Revenue from Contracts with Customers 66,271 39,157 78,882 34,079 27,634 — 246,023 Lease Revenue — — — 323 — — 323 Intersegment — — — — 49 (49) — Total Revenue $66,271 $39,157 $78,882 $34,402 $27,683 ($49) $246,346 (a) Includes deferred revenue adjustments, revenue true-ups and marketing fees related to Improved Development sales. Six Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Elim. Total June 30, 2023 Pulpwood $50,638 $5,919 $14,446 — $2,881 — $73,884 Sawtimber 68,389 57,562 89,512 — 24,176 — 239,639 Hardwood 1,826 — — — — — 1,826 Total Timber Sales 120,853 63,481 103,958 — 27,057 — 315,349 License Revenue, Primarily From Hunting 10,454 340 123 — — — 10,917 Other Non-Timber/Carbon Revenue 8,845 2,915 923 — — — 12,683 Agency Fee Income — — — — 681 — 681 Total Non-Timber Sales 19,299 3,255 1,046 — 681 — 24,281 Improved Development — — — 17,035 — — 17,035 Rural — — — 22,125 — — 22,125 Timberland & Non-Strategic — — — 1,892 — — 1,892 Deferred Revenue/Other (a) — — — 6,661 — — 6,661 Total Real Estate Sales — — — 47,713 — — 47,713 Revenue from Contracts with Customers 140,152 66,736 105,004 47,713 27,738 — 387,343 Lease Revenue — — — 604 — — 604 Intersegment — — — — 246 (246) — Total Revenue $140,152 $66,736 $105,004 $48,317 $27,984 ($246) $387,947 Six Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Elim. Total June 30, 2022 Pulpwood $68,381 $6,491 $18,446 — $4,523 — $97,841 Sawtimber 49,260 76,524 106,347 — 35,857 — 267,988 Hardwood 11,555 — — — — — 11,555 Total Timber Sales 129,196 83,015 124,793 — 40,380 — 377,384 License Revenue, Primarily from Hunting 11,182 245 148 — — — 11,575 Other Non-Timber/Carbon Revenue 2,657 2,177 5,330 — — — 10,164 Agency Fee Income — — — — 667 — 667 Total Non-Timber Sales 13,839 2,422 5,478 — 667 — 22,406 Improved Development — — — 16,532 — — 16,532 Rural — — — 40,369 — — 40,369 Timberland & Non-Strategic — — — 11,400 — — 11,400 Deferred Revenue/Other (a) — — — (271) — — (271) Total Real Estate Sales — — — 68,030 — — 68,030 Revenue from Contracts with Customers 143,035 85,437 130,271 68,030 41,047 — 467,820 Lease Revenue — — — 567 — — 567 Intersegment — — — — 98 (98) — Total Revenue $143,035 $85,437 $130,271 $68,597 $41,145 ($98) $468,387 (a) Includes deferred revenue adjustments, revenue true-ups and marketing fees related to Improved Development sales. The following tables present our timber sales disaggregated by contract type for the three and six months ended June 30, 2023 and 2022: Three Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Trading Total June 30, 2023 Stumpage Pay-as-Cut $30,493 — — — $30,493 Stumpage Lump Sum 281 — — — 281 Total Stumpage 30,774 — — — 30,774 Delivered Wood (Domestic) 25,437 26,996 12,559 89 65,081 Delivered Wood (Export) 2,196 2,989 47,634 14,863 67,682 Total Delivered 27,633 29,985 60,193 14,952 132,763 Total Timber Sales $58,407 $29,985 $60,193 $14,952 $163,537 June 30, 2022 Stumpage Pay-as-Cut $21,326 — — — $21,326 Stumpage Lump Sum 90 85 — — 175 Total Stumpage 21,416 85 — — 21,501 Delivered Wood (Domestic) 33,248 33,956 18,051 1,104 86,359 Delivered Wood (Export) 3,556 3,841 57,047 26,214 90,658 Total Delivered 36,804 37,797 75,098 27,318 177,017 Total Timber Sales $58,220 $37,882 $75,098 $27,318 $198,518 Six Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Trading Total June 30, 2023 Stumpage Pay-as-Cut $60,970 — — — $60,970 Stumpage Lump Sum 387 624 — — 1,011 Total Stumpage 61,357 624 — — 61,981 Delivered Wood (Domestic) 54,850 56,164 24,154 491 135,659 Delivered Wood (Export) 4,646 6,693 79,804 26,566 117,709 Total Delivered 59,496 62,857 103,958 27,057 253,368 Total Timber Sales $120,853 $63,481 $103,958 $27,057 $315,349 June 30, 2022 Stumpage Pay-as-Cut $57,532 — — — $57,532 Stumpage Lump Sum 90 5,473 — — 5,563 Total Stumpage 57,622 5,473 — — 63,095 Delivered Wood (Domestic) 65,376 73,402 31,532 1,729 172,039 Delivered Wood (Export) 6,198 4,140 93,261 38,651 142,250 Total Delivered 71,574 77,542 124,793 40,380 314,289 Total Timber Sales $129,196 $83,015 $124,793 $40,380 $377,384 |
NONCONTROLLING INTERESTS (Table
NONCONTROLLING INTERESTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Noncontrolling Interest in the Operating Partnership and Subsidiaries | The following table sets forth the Company’s noncontrolling interests in the operating partnership: Three Months Ended June 30, Six Months Ended 2023 2022 2023 2022 Beginning noncontrolling interests in the operating partnership $82,461 $136,239 $105,763 $133,823 Adjustment of noncontrolling interests in the operating partnership (4,296) (11,412) (1,920) (8,767) Conversions of Redeemable Operating Partnership Units to Common Shares (304) (42) (24,185) (146) Net Income attributable to noncontrolling interests in the operating partnership 318 546 492 1,214 Other Comprehensive Income (Loss) attributable to noncontrolling interests in the operating partnership 58 (575) (1,052) (474) Distributions to noncontrolling interests in the operating partnership (705) (945) (1,566) (1,839) Total noncontrolling interests in the operating partnership $77,532 $123,811 $77,532 $123,811 |
EARNINGS PER SHARE AND PER UN_2
EARNINGS PER SHARE AND PER UNIT (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table provides details of the calculations of basic and diluted earnings per common share of the Company: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Earnings per common share - basic Numerator: Net Income $19,096 $25,287 $26,534 $56,286 Less: Net income attributable to noncontrolling interests in the operating partnership (318) (546) (492) (1,214) Less: Net loss (income) attributable to noncontrolling interests in consolidated affiliates 245 (637) 1,281 (1,650) Net income attributable to Rayonier Inc. $19,023 $24,104 $27,323 $53,422 Denominator: Denominator for basic earnings per common share - weighted average shares 148,218,436 146,257,311 147,800,265 145,846,026 Basic earnings per common share attributable to Rayonier Inc.: $0.13 $0.16 $0.18 $0.37 Earnings per common share - diluted Numerator: Net Income $19,096 $25,287 $26,534 $56,286 Less: Net loss (income) attributable to noncontrolling interests in consolidated affiliates 245 (637) 1,281 (1,650) Net income attributable to Rayonier Inc., before net income attributable to noncontrolling interests in the operating partnership $19,341 $24,650 $27,815 $54,636 Denominator: Denominator for basic earnings per common share - weighted average shares 148,218,436 146,257,311 147,800,265 145,846,026 Add: Dilutive effect of: Stock options — 8,100 943 7,664 Performance shares, restricted shares and restricted stock units 269,994 666,653 441,204 730,773 Noncontrolling interests in operating partnership units 2,476,761 3,312,315 2,785,928 3,313,543 Denominator for diluted earnings per common share - adjusted weighted average shares 150,965,191 150,244,379 151,028,340 149,898,006 Diluted earnings per common share attributable to Rayonier Inc.: $0.13 $0.16 $0.18 $0.36 The following table provides details of the calculations of basic and diluted earnings per unit of the Operating Partnership: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Earnings per unit - basic Numerator: Net Income $19,096 $25,287 $26,534 $56,286 Less: Net loss (income) attributable to noncontrolling interests in consolidated affiliates 245 (637) 1,281 (1,650) Net income available to unitholders $19,341 $24,650 $27,815 $54,636 Denominator: Denominator for basic earnings per unit - weighted average units 150,695,197 149,569,626 150,586,193 149,159,569 Basic earnings per unit attributable to Rayonier, L.P.: $0.13 $0.16 $0.18 $0.37 Earnings per unit - diluted Numerator: Net Income $19,096 $25,287 $26,534 $56,286 Less: Net loss (income) attributable to noncontrolling interests in consolidated affiliates 245 (637) 1,281 (1,650) Net income available to unitholders $19,341 $24,650 $27,815 $54,636 Denominator: Denominator for basic earnings per unit - weighted average units 150,695,197 149,569,626 150,586,193 149,159,569 Add: Dilutive effect of unit equivalents: Stock options — 8,100 943 7,664 Performance shares, restricted shares and restricted stock units 269,994 666,653 441,204 730,773 Denominator for diluted earnings per unit - adjusted weighted average units 150,965,191 150,244,379 151,028,340 149,898,006 Diluted earnings per unit attributable to Rayonier, L.P.: $0.13 $0.16 $0.18 $0.36 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Anti-dilutive shares excluded from the computations of diluted earnings per common share: Stock options, performance shares, restricted shares and restricted stock units 241,316 109,515 152,992 54,884 Total 241,316 109,515 152,992 54,884 Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Anti-dilutive unit equivalents excluded from the computations of diluted earnings per unit: Stock options, performance shares, restricted shares and restricted stock units 241,316 109,515 152,992 54,884 Total 241,316 109,515 152,992 54,884 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Instruments | Our debt consisted of the following at June 30, 2023: June 30, 2023 Debt Senior Notes due 2031 at a fixed interest rate of 2.75% $450,000 2015 Term Loan borrowings due 2028 at a variable interest rate of 6.76% at June 30, 2023 350,000 2022 Incremental Term Loan borrowings due 2027 at a variable interest rate of 6.76% at June 30, 2023 250,000 2016 Incremental Term Loan borrowings due 2026 at a variable interest rate of 6.81% at June 30, 2023 200,000 2021 Incremental Term Loan borrowings due 2029 at a variable interest rate of 6.71% at June 30, 2023 200,000 New Zealand subsidiary noncontrolling interests shareholder loan due 2026 at a fixed interest rate of 3.64% (a) 24,511 New Zealand subsidiary noncontrolling interests shareholder loan due 2027 at a fixed interest rate of 6.48% (a) 24,511 New Zealand subsidiary noncontrolling interests shareholder loan due 2025 at a fixed interest rate of 2.95% (a) 21,009 Total principal debt 1,520,031 Less: Unamortized discounts (2,940) Less: Deferred financing costs (4,894) Total long-term debt $1,512,197 (a) Except for changes in the New Zealand foreign exchange rate, there have been no adjustments to the carrying value of the shareholder loans since inception. The following table contains information on the outstanding variable rate debt as of June 30, 2023: Debt Periodic Interest Rate (a) Effective Fixed Interest Rate (b) 2015 Term Loan Daily Simple SOFR + 1.70% 3.03 % 2022 Incremental Term Loan Daily Simple SOFR + 1.70% 5.38 % 2016 Incremental Term Loan Daily Simple SOFR + 1.75% 2.40 % 2021 Incremental Term Loan Daily Simple SOFR + 1.65% 1.46 % (a) Includes credit spread adjustment of 0.1%. (b) Effective interest rate is after consideration of interest rate swaps and estimated patronage refunds. |
Schedule of Maturities of Long-Term Debt | Principal payments due during the next five years and thereafter are as follows: Total 2023 — 2024 — 2025 21,009 2026 224,511 2027 274,511 Thereafter 1,000,000 Total Debt $1,520,031 |
Schedule of Debt Covenants | The covenants listed below, which are the most significant financial covenants in effect as of June 30, 2023, are calculated on a trailing 12-month basis: Covenant Requirement Actual Ratio Favorable Covenant EBITDA to consolidated interest expense should not be less than 2.5 to 1 7.4 to 1 4.9 Covenant debt to covenant net worth plus covenant debt shall not exceed 65 % 46 % 19 % |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Interest Rate Derivatives | The following table contains information on the outstanding interest rate swaps as of June 30, 2023: Outstanding Interest Rate Swaps (a) Date Entered Into Term Notional Amount Related Debt Facility Fixed Rate of Swap Bank Margin on Debt (b) Total Effective Interest Rate (c) August 2015 9 years $170,000 Term Credit Agreement 2.10 % 1.70 % 3.80 % August 2015 9 years 180,000 Term Credit Agreement 2.26 % 1.70 % 3.96 % April 2016 10 years 100,000 Incremental Term Loan 1.50 % 1.75 % 3.25 % April 2016 10 years 100,000 Incremental Term Loan 1.51 % 1.75 % 3.26 % May 2021 7 years 200,000 2021 Incremental Term Loan Facility 0.67 % 1.65 % 2.32 % December 2022 5 years 100,000 2022 Incremental Term Loan Facility 3.72 % 1.70 % 5.42 % (a) All interest rate swaps have been designated as interest rate cash flow hedges and qualify for hedge accounting. (b) Includes the SOFR Credit Spread Adjustment component of 0.1%. (c) Rate is before estimated patronage payments. The following table contains information on the outstanding forward-starting interest rate swaps as of June 30, 2023: 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 April 2020 4 years $100,000 0.78 % Term Credit Agreement August 2024 N/A May 2020 4 years 50,000 0.64 % Term Credit Agreement August 2024 N/A May 2023 4 years 50,000 3.29 % Term Credit Agreement August 2024 N/A (a) All forward-starting interest rate swaps have been designated as interest rate cash flow hedges and qualify for hedge accounting. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | The following tables demonstrate the impact, gross of tax, of our derivatives on the Consolidated Statements of Income and Comprehensive Income for the three and six months ended June 30, 2023 and 2022: Three Months Ended Income Statement Location 2023 2022 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other comprehensive income (loss) $188 ($14,438) Other operating (expense) income, net (1,577) 86 Foreign currency option contracts Other comprehensive income (loss) (561) (686) Other operating (expense) income, net (48) — Interest rate products Other comprehensive income (loss) 17,695 14,636 Interest expense, net (4,314) 1,948 Six Months Ended Income Statement Location 2023 2022 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other comprehensive income (loss) $4,001 ($10,909) Other operating (expense) income, net (4,005) 70 Foreign currency option contracts Other comprehensive income (loss) (831) (550) Other operating (expense) income, net (48) — Interest rate products Other comprehensive income (loss) 8,035 49,765 Interest expense, net (7,777) 4,618 Amount expected to be reclassified into earnings in next 12 months Derivatives designated as cash flow hedges: Foreign currency exchange contracts ($3,108) Foreign currency option contracts (324) Interest rate products (a) 27,564 Total estimated gain on derivatives contracts $24,132 (a) These reclassified amounts are expected to fully offset variable interest rate payments made to debt holders, resulting in no net impact on our earnings or cash flows. |
Schedule of Notional Amounts of Outstanding Derivative Positions | The following table contains the notional amounts of the derivative financial instruments recorded in the Consolidated Balance Sheets: Notional Amount June 30, 2023 December 31, 2022 Derivatives designated as cash flow hedges: Foreign currency exchange contracts $124,600 $138,250 Foreign currency option contracts 82,000 78,000 Interest rate swaps 850,000 850,000 Forward-starting interest rate swaps 200,000 150,000 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table contains the fair values of the derivative financial instruments recorded in the Consolidated Balance Sheets at June 30, 2023 and December 31, 2022. Changes in balances of derivative financial instruments are recorded as operating activities in the Consolidated Statements of Cash Flows: Location on Balance Sheet Fair Value Assets / (Liabilities) (a) June 30, 2023 December 31, 2022 Derivatives designated as cash flow hedges: Foreign currency exchange contracts Other current assets $21 $25 Other assets 544 1,303 Other current liabilities (4,338) (5,457) Other non-current liabilities (768) (410) Foreign currency option contracts Other current assets 15 66 Other assets 1,182 2,131 Other current liabilities (465) (347) Other non-current liabilities (1,044) (1,281) Interest rate swaps Other assets 59,192 60,843 Other non-current liabilities — (51) Forward-starting interest rate swaps Other assets 13,441 11,939 Total derivative contracts: Other current assets $36 $91 Other assets 74,359 76,216 Total derivative assets $74,395 $76,307 Other current liabilities (4,803) (5,804) Other non-current liabilities (1,812) (1,742) Total derivative liabilities ($6,615) ($7,546) (a) See Note 8 — Fair Value Measurements for further information on the fair value of our derivatives including their classification within the fair value hierarchy. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, by Balance Sheet Grouping | The following table presents the carrying amount and estimated fair values of our financial instruments as of June 30, 2023 and December 31, 2022, using market information and what we believe to be appropriate valuation methodologies under GAAP: June 30, 2023 December 31, 2022 Asset (Liability) (a) Carrying Fair Value Carrying Fair Value Level 1 Level 2 Level 1 Level 2 Cash and cash equivalents $88,404 $88,404 — $114,255 $114,255 — Restricted cash (b) 4,962 4,962 — 1,152 1,152 — Long-term debt (c) (1,512,197) — (1,429,173) (1,514,721) — (1,438,736) Interest rate swaps (d) 59,192 — 59,192 60,792 — 60,792 Forward-starting interest rate swaps (d) 13,441 — 13,441 11,939 — 11,939 Foreign currency exchange contracts (d) (4,541) — (4,541) (4,539) — (4,539) Foreign currency option contracts (d) (312) — (312) 569 — 569 Noncontrolling interests in the operating partnership (e) 77,532 — 77,532 105,763 — 105,763 (a) We did not have Level 3 assets or liabilities at June 30, 2023 and December 31, 2022. (b) Restricted cash represents proceeds from like-kind exchange sales deposited with a third-party intermediary and cash held in escrow. See Note 18 — Restricted Cash for additional information. (c) The carrying amount of long-term debt is presented net of deferred financing costs and unamortized discounts on non-revolving debt. See Note 6 — Debt for additional information. (d) See Note 7 — Derivative Financial Instruments and Hedging Activities for information regarding the Consolidated Balance Sheets classification of our derivative financial instruments. (e) Noncontrolling interests in the operating partnership is neither an asset nor liability and is classified as temporary equity in the Company’s Consolidated Balance Sheets. This relates to the ownership of Rayonier, L.P. units by various individuals and entities other than the Company. See Note 4 — Noncontrolling Interests for additional information. |
ENVIRONMENTAL AND NATURAL RES_2
ENVIRONMENTAL AND NATURAL RESOURCE DAMAGE LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of Environmental Loss Contingencies by Site | Changes in environmental and NRD liabilities from December 31, 2022 to June 30, 2023 are shown below: Port Gamble, WA Non-current portion at December 31, 2022 $14,418 Plus: Current portion 1,175 Total Balance at December 31, 2022 15,593 Expenditures charged to liabilities (223) Decrease to liabilities (a) (20) Total Balance at June 30, 2023 15,350 Less: Current portion (2,371) Non-current portion at June 30, 2023 $12,979 (a) Reflects revised environmental and NRD cost estimates recorded during the six months ended June 30, 2023. |
GUARANTEES (Tables)
GUARANTEES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Guarantees [Abstract] | |
Schedule of Guarantor Obligations | As of June 30, 2023, the following financial guarantees were outstanding: Financial Commitments (a) Maximum Potential Standby letters of credit (b) $3,779 Surety bonds (c) 21,687 Total financial commitments $25,466 (a) We have not recorded any liabilities for these financial commitments in our Consolidated Balance Sheets. The guarantees are not subject to measurement, as the guarantees are dependent on our own performance. (b) Approximately $2.9 million of the standby letters of credit serve as credit support for real estate construction in our Wildlight development project. The remaining letters of credit support various insurance related agreements, primarily workers’ compensation. These letters of credit will expire at various dates during 2023 and will be renewed as required. (c) Surety bonds are issued primarily to secure performance obligations related to various operational activities and to provide collateral for our Wildlight development project in Nassau County, Florida and our Heartwood development project in Richmond Hill, Georgia. These surety bonds expire at various dates during 2023, 2024, and 2025 and are expected to be renewed as required. |
HIGHER AND BETTER USE TIMBERL_2
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Real Estate [Abstract] | |
Schedule of Higher and Better Use Timberlands and Real Estate Development Investments | Changes in higher and better use timberlands and real estate development investments from December 31, 2022 to June 30, 2023 are shown below: Higher and Better Use Timberlands and Real Estate Development Investments Land and Timber Development Investments Total Non-current portion at December 31, 2022 $91,374 $23,723 $115,097 Plus: Current portion (a) 408 17,501 17,909 Total Balance at December 31, 2022 91,782 41,224 133,006 Non-cash cost of land and improved development (1,055) (10,337) (11,392) Amortization of parcel real estate development investments — (5,257) (5,257) Timber depletion from harvesting activities and basis of timber sold in real estate sales (672) — (672) Capitalized real estate development investments (b) — 19,045 19,045 Capital expenditures (silviculture) 23 — 23 Intersegment transfers 553 — 553 Total Balance at June 30, 2023 90,631 44,675 135,306 Less: Current portion (a) (1,346) (22,174) (23,520) Non-current portion at June 30, 2023 $89,285 $22,501 $111,786 (a) The current portion of Higher and Better Use Timberlands and Real Estate Development Investments is recorded in Inventory. See Note 13 — Inventory for additional information. (b) Capitalized real estate development investments include $0.4 million of capitalized interest and $4.3 million of parcel real estate development investments. Parcel real estate development investments represent investments made for specific lots and/or commercial parcels that are currently under contract or expected to be ready for market within a year. |
INVENTORY (Tables)
INVENTORY (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | As of June 30, 2023 and December 31, 2022, our inventory consisted entirely of finished goods, as follows: June 30, 2023 December 31, 2022 Finished goods inventory Real estate inventory (a) $23,520 $17,909 Log inventory 8,508 5,347 Carbon unit inventory (b) 303 473 Total inventory $32,331 $23,729 (a) Represents the cost of HBU real estate (including capitalized development investments) under contract to be sold as well as the cost of HBU real estate deferred until post-closing obligations are satisfied. See Note 12 — Higher And Better Use Timberlands and Real Estate Development Investments for additional information. (b) Represents the basis in New Zealand carbon units intended to be sold in the next 12 months. |
OTHER OPERATING (EXPENSE) INC_2
OTHER OPERATING (EXPENSE) INCOME, NET (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating (Income) Expense, Net | Other operating (expense) income, net consisted of the following: Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 (Loss) gain on foreign currency remeasurement, net of cash flow hedges ($1,674) $1,249 ($4,157) $677 Gain on sale or disposal of property and equipment 35 6 37 31 Equity loss related to Bainbridge Landing LLC joint venture — (145) — (370) Miscellaneous income (expense), net 238 (309) 203 (520) Total ($1,401) $801 ($3,917) ($182) |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Net Benefit Costs | The net pension and postretirement benefit (credits) costs that have been recorded are shown in the following table: Components of Net Periodic Benefit (Credit) Cost Income Statement Location Pension Postretirement Three Months Ended Three Months Ended 2023 2022 2023 2022 Service cost Selling and general expenses — — $1 $2 Interest cost Interest and other miscellaneous income (expense), net 844 609 17 13 Expected return on plan assets (a) Interest and other miscellaneous income (expense), net (887) (872) — — Amortization of losses Interest and other miscellaneous income (expense), net 1 184 — 4 Net periodic benefit (credit) cost ($42) ($79) $18 $19 Components of Net Periodic Benefit (Credit) Cost Income Statement Location Pension Postretirement Six Months Ended Six Months Ended 2023 2022 2023 2022 Service cost Selling and general expenses — — $2 $3 Interest cost Interest and other miscellaneous income (expense), net 1,689 1,217 35 26 Expected return on plan assets (a) Interest and other miscellaneous income (expense), net (1,776) (1,743) — — Amortization of losses Interest and other miscellaneous income (expense), net 3 369 — 7 Net periodic benefit (credit) cost ($84) ($157) $37 $36 (a) The weighted-average expected long-term rate of return on plan assets used in computing 2023 net periodic benefit cost for pension benefit s is 5.0%. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following table contains the income tax expense recognized on the Consolidated Statements of Income and Comprehensive Income: Three Months Ended Six Months Ended 2023 2022 2023 2022 Income tax expense ($193) ($1,304) ($1,230) ($6,818) |
Schedule of Effective Income Tax Rate Reconciliation | The following table contains the Company’s annualized effective tax rate after discrete items: Six Months Ended 2023 2022 Annualized effective tax rate after discrete items 3.9 % 9.2 % |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the changes in AOCI by component for the six months ended June 30, 2023 and the year ended December 31, 2022. All amounts are presented net of tax and exclude portions attributable to noncontrolling interests. Foreign currency translation (loss) gains Net investment hedges of New Zealand subsidiary Cash flow hedges Employee benefit plans Total Rayonier, L.P. Allocation to Operating Partnership Total Rayonier Inc. Balance as of December 31, 2021 $4,215 $1,321 ($9,163) ($11,836) ($15,463) ($4,141) ($19,604) Other comprehensive income (loss) before reclassifications (22,282) — 78,166 (a) 874 56,758 (1,323) 55,435 Amounts reclassified from accumulated other comprehensive income (loss) — — (1,799) 753 (b) (1,046) 1,028 (18) Net other comprehensive income (loss) (22,282) — 76,367 1,627 55,712 (295) 55,417 Balance as of December 31, 2022 ($18,067) $1,321 $67,204 ($10,209) $40,249 ($4,436) $35,813 Other comprehensive (loss) income before reclassifications (12,342) — 9,792 (a) — (2,550) 88 (2,462) Amounts reclassified from accumulated other comprehensive income — — (10,023) 3 (b) (10,020) 964 (9,056) Net other comprehensive income (loss) (12,342) — (231) 3 (12,570) 1,052 (11,518) Balance as of June 30, 2023 ($30,409) $1,321 $66,973 ($10,206) $27,679 ($3,384) $24,295 (a) The six months ended June 30, 2023 includes $8.0 million of other comprehensive income related to interest rate products. The year ended December 31, 2022 included $75.0 million of other comprehensive income re lated to interest rate products. See Note 7 — Derivative Financial Instruments and Hedging Activities for additional information. (b) This component of other comprehensive income is included in the computation of net periodic pension and post-retirement costs. See Note 15 — Employee Benefit Plans |
Schedule of Reclassification out of Accumulated Other Comprehensive Income | The following table presents details of the amounts reclassified in their entirety from AOCI to net income for the six months ended June 30, 2023 and June 30, 2022: Details about accumulated other comprehensive income (loss) components Amount reclassified from accumulated other comprehensive income (loss) Affected line item in the Income Statement June 30, 2023 June 30, 2022 Realized (gain) loss on foreign currency exchange contracts ($4,005) $71 Other operating expense, net Realized loss on foreign currency option contracts (48) — Other operating expense, net Noncontrolling interests 932 (16) Comprehensive loss (income) attributable to noncontrolling interests Realized (gain) loss on interest rate contracts (7,777) 4,617 Interest expense Income tax effect from net gain (loss) on foreign currency contracts 875 (15) Income tax expense Net (gain) loss on cash flow hedges reclassified from accumulated other comprehensive income ($10,023) $4,657 |
RESTRICTED CASH (Tables)
RESTRICTED CASH (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Restricted Cash and Investments [Abstract] | |
Schedule of Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted cash in the Consolidated Balance Sheets that sum to the total of the same such amounts in the Consolidated Statements of Cash Flows for the six months ended June 30, 2023 and 2022: Six Months Ended June 30, 2023 2022 Restricted cash, excluding Timber Funds: Restricted cash deposited with LKE intermediary $1,646 $13,704 Restricted cash held in escrow 3,316 625 Total restricted cash, excluding Timber Funds 4,962 14,329 Restricted cash, Timber Funds — 1,464 Cash and cash equivalents 88,404 280,280 Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows $93,366 $296,073 |
BASIS OF PRESENTATION (Details)
BASIS OF PRESENTATION (Details) $ in Millions, $ in Millions | Jun. 30, 2023 NZD ($) | Jul. 24, 2023 USD ($) |
Working Capital Facility | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Maximum borrowing capacity | $ 20 | |
Working Capital Facility | Subsequent Event | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Maximum borrowing capacity | $ 20 | |
Operating Partnership | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Ownership interest (as a percent) | 98.40% | |
Ownership interest owned by limited partners (as a percent) | 1.60% |
SEGMENT AND GEOGRAPHICAL INFO_3
SEGMENT AND GEOGRAPHICAL INFORMATION - Schedule of Segment Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
SALES | $ 208,865 | $ 246,346 | $ 387,947 | $ 468,387 |
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
SALES | (116) | (49) | (246) | (98) |
Operating Segments | Southern Timber | ||||
Segment Reporting Information [Line Items] | ||||
SALES | 68,310 | 66,271 | 140,152 | 143,035 |
Operating Segments | Pacific Northwest Timber | ||||
Segment Reporting Information [Line Items] | ||||
SALES | 32,317 | 39,157 | 66,736 | 85,437 |
Operating Segments | New Zealand Timber | ||||
Segment Reporting Information [Line Items] | ||||
SALES | 60,898 | 78,882 | 105,004 | 130,271 |
Operating Segments | Real Estate | ||||
Segment Reporting Information [Line Items] | ||||
SALES | 32,041 | 34,402 | 48,317 | 68,597 |
Operating Segments | Trading | ||||
Segment Reporting Information [Line Items] | ||||
SALES | 15,415 | 27,683 | 27,984 | 41,145 |
Intersegment Eliminations | Trading | ||||
Segment Reporting Information [Line Items] | ||||
SALES | 116 | 49 | 246 | 98 |
Intersegment Eliminations | Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
SALES | $ (116) | $ (49) | $ (246) | $ (98) |
SEGMENT AND GEOGRAPHICAL INFO_4
SEGMENT AND GEOGRAPHICAL INFORMATION - Schedule of Operating Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Total Operating Income | $ 20,102 | $ 35,468 | $ 30,725 | $ 80,786 |
Unallocated interest expense and other | (813) | (8,877) | (2,961) | (17,682) |
Total Income before Income Taxes | 19,289 | 26,591 | 27,764 | 63,104 |
Gain from net recovery with legal settlement | 11,400 | 20,500 | ||
New Zealand Timber | ||||
Segment Reporting Information [Line Items] | ||||
Timber write-offs from casualty events | 2,300 | |||
Operating Segments | Southern Timber | ||||
Segment Reporting Information [Line Items] | ||||
Total Operating Income | 21,708 | 24,067 | 43,931 | 54,409 |
Operating Segments | Pacific Northwest Timber | ||||
Segment Reporting Information [Line Items] | ||||
Total Operating Income | (2,376) | 2,943 | (5,919) | 9,550 |
Operating Segments | New Zealand Timber | ||||
Segment Reporting Information [Line Items] | ||||
Total Operating Income | 2,373 | 7,981 | 1,710 | 13,373 |
Operating Segments | Real Estate | ||||
Segment Reporting Information [Line Items] | ||||
Total Operating Income | 8,649 | 11,023 | 9,532 | 21,204 |
Operating Segments | Trading | ||||
Segment Reporting Information [Line Items] | ||||
Total Operating Income | 67 | (444) | 409 | (93) |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Total Operating Income | $ (10,319) | $ (10,102) | $ (18,938) | $ (17,657) |
SEGMENT AND GEOGRAPHICAL INFO_5
SEGMENT AND GEOGRAPHICAL INFORMATION - Schedule of Depreciation, Depletion and Amortization (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
DEPRECIATION, DEPLETION AND AMORTIZATION | $ 39,715 | $ 35,751 | $ 77,314 | $ 83,169 |
Operating Segments | Southern Timber | ||||
Segment Reporting Information [Line Items] | ||||
DEPRECIATION, DEPLETION AND AMORTIZATION | 21,868 | 14,657 | 42,478 | 32,716 |
Operating Segments | Pacific Northwest Timber | ||||
Segment Reporting Information [Line Items] | ||||
DEPRECIATION, DEPLETION AND AMORTIZATION | 9,242 | 11,316 | 19,892 | 26,232 |
Operating Segments | New Zealand Timber | ||||
Segment Reporting Information [Line Items] | ||||
DEPRECIATION, DEPLETION AND AMORTIZATION | 5,927 | 6,901 | 10,382 | 11,891 |
Operating Segments | Real Estate | ||||
Segment Reporting Information [Line Items] | ||||
DEPRECIATION, DEPLETION AND AMORTIZATION | 2,235 | 2,564 | 3,738 | 11,709 |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
DEPRECIATION, DEPLETION AND AMORTIZATION | $ 443 | $ 313 | $ 824 | $ 621 |
SEGMENT AND GEOGRAPHICAL INFO_6
SEGMENT AND GEOGRAPHICAL INFORMATION - Schedule of Non-Cash Cost of Land and Improved Development (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT | $ 9,395 | $ 11,780 | $ 13,603 | $ 17,139 |
Real Estate | ||||
Segment Reporting Information [Line Items] | ||||
NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT | $ 9,395 | $ 11,780 | $ 13,603 | $ 17,139 |
REVENUE - Remaining Performance
REVENUE - Remaining Performance Obligations Narrative (Details) $ in Millions | Jun. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected to satisfaction, amount | $ 33.5 |
Remaining performance obligation, expected to satisfaction, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, expected to satisfaction, amount | $ 11.3 |
Remaining performance obligation, expected to satisfaction, period |
REVENUE - Contract Balances (De
REVENUE - Contract Balances (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Trade receivables, net | $ 31,515 | $ 27,837 |
Deferred revenue, current | 33,490 | 22,762 |
Deferred revenue, non-current | $ 11,327 | $ 6,895 |
REVENUE - Revenue Recognized Fr
REVENUE - Revenue Recognized From Contract Liability (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue recognized from contract liability balance at the beginning of the year | $ 6,335 | $ 4,968 | $ 17,735 | $ 12,501 |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue by Product (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | $ 208,506 | $ 246,023 | $ 387,343 | $ 467,820 |
Lease Revenue | 359 | 323 | 604 | 567 |
Total Revenue | 208,865 | 246,346 | 387,947 | 468,387 |
Total Timber Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 163,537 | 198,518 | 315,349 | 377,384 |
Pulpwood | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 35,865 | 48,192 | 73,884 | 97,841 |
Sawtimber | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 126,966 | 144,620 | 239,639 | 267,988 |
Hardwood | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 706 | 5,706 | 1,826 | 11,555 |
Total Non-Timber Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 13,287 | 13,426 | 24,281 | 22,406 |
License Revenue, Primarily from Hunting | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 5,457 | 6,722 | 10,917 | 11,575 |
Other Non-Timber/Carbon Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 7,483 | 6,388 | 12,683 | 10,164 |
Agency Fee Income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 347 | 316 | 681 | 667 |
Total Real Estate Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 31,682 | 34,079 | 47,713 | 68,030 |
Improved Development | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 12,233 | 11,566 | 17,035 | 16,532 |
Rural | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 15,626 | 23,420 | 22,125 | 40,369 |
Timberland & Non-Strategic | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 255 | 1,892 | 11,400 | |
Deferred Revenue/Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 3,568 | (907) | 6,661 | (271) |
Elim. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | (116) | (49) | (246) | (98) |
Operating Segments | Southern Timber | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 68,310 | 66,271 | 140,152 | 143,035 |
Total Revenue | 68,310 | 66,271 | 140,152 | 143,035 |
Operating Segments | Southern Timber | Total Timber Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 58,407 | 58,220 | 120,853 | 129,196 |
Operating Segments | Southern Timber | Pulpwood | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 23,855 | 30,770 | 50,638 | 68,381 |
Operating Segments | Southern Timber | Sawtimber | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 33,846 | 21,744 | 68,389 | 49,260 |
Operating Segments | Southern Timber | Hardwood | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 706 | 5,706 | 1,826 | 11,555 |
Operating Segments | Southern Timber | Total Non-Timber Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 9,903 | 8,051 | 19,299 | 13,839 |
Operating Segments | Southern Timber | License Revenue, Primarily from Hunting | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 5,186 | 6,506 | 10,454 | 11,182 |
Operating Segments | Southern Timber | Other Non-Timber/Carbon Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 4,717 | 1,545 | 8,845 | 2,657 |
Operating Segments | Southern Timber | Agency Fee Income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
Operating Segments | Pacific Northwest Timber | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 32,317 | 39,157 | 66,736 | 85,437 |
Total Revenue | 32,317 | 39,157 | 66,736 | 85,437 |
Operating Segments | Pacific Northwest Timber | Total Timber Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 29,985 | 37,882 | 63,481 | 83,015 |
Operating Segments | Pacific Northwest Timber | Pulpwood | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 2,204 | 3,572 | 5,919 | 6,491 |
Operating Segments | Pacific Northwest Timber | Sawtimber | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 27,781 | 34,310 | 57,562 | 76,524 |
Operating Segments | Pacific Northwest Timber | Hardwood | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
Operating Segments | Pacific Northwest Timber | Total Non-Timber Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 2,332 | 1,275 | 3,255 | 2,422 |
Operating Segments | Pacific Northwest Timber | License Revenue, Primarily from Hunting | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 203 | 129 | 340 | 245 |
Operating Segments | Pacific Northwest Timber | Other Non-Timber/Carbon Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 2,129 | 1,146 | 2,915 | 2,177 |
Operating Segments | Pacific Northwest Timber | Agency Fee Income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
Operating Segments | New Zealand Timber | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 60,898 | 78,882 | 105,004 | 130,271 |
Total Revenue | 60,898 | 78,882 | 105,004 | 130,271 |
Operating Segments | New Zealand Timber | Total Timber Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 60,193 | 75,098 | 103,958 | 124,793 |
Operating Segments | New Zealand Timber | Pulpwood | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 8,364 | 10,851 | 14,446 | 18,446 |
Operating Segments | New Zealand Timber | Sawtimber | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 51,829 | 64,247 | 89,512 | 106,347 |
Operating Segments | New Zealand Timber | Hardwood | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
Operating Segments | New Zealand Timber | Total Non-Timber Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 705 | 3,784 | 1,046 | 5,478 |
Operating Segments | New Zealand Timber | License Revenue, Primarily from Hunting | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 68 | 87 | 123 | 148 |
Operating Segments | New Zealand Timber | Other Non-Timber/Carbon Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 637 | 3,697 | 923 | 5,330 |
Operating Segments | New Zealand Timber | Agency Fee Income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
Operating Segments | Real Estate | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 31,682 | 34,079 | 47,713 | 68,030 |
Lease Revenue | 359 | 323 | 604 | 567 |
Total Revenue | 32,041 | 34,402 | 48,317 | 68,597 |
Operating Segments | Real Estate | Total Real Estate Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 31,682 | 34,079 | 47,713 | 68,030 |
Operating Segments | Real Estate | Improved Development | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 12,233 | 11,566 | 17,035 | 16,532 |
Operating Segments | Real Estate | Rural | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 15,626 | 23,420 | 22,125 | 40,369 |
Operating Segments | Real Estate | Timberland & Non-Strategic | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 255 | 1,892 | 11,400 | |
Operating Segments | Real Estate | Deferred Revenue/Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 3,568 | (907) | 6,661 | (271) |
Operating Segments | Trading | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 15,299 | 27,634 | 27,738 | 41,047 |
Total Revenue | 15,415 | 27,683 | 27,984 | 41,145 |
Operating Segments | Trading | Total Timber Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 14,952 | 27,318 | 27,057 | 40,380 |
Operating Segments | Trading | Pulpwood | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 1,442 | 2,999 | 2,881 | 4,523 |
Operating Segments | Trading | Sawtimber | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 13,510 | 24,319 | 24,176 | 35,857 |
Operating Segments | Trading | Hardwood | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
Operating Segments | Trading | Total Non-Timber Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 347 | 316 | 681 | 667 |
Operating Segments | Trading | License Revenue, Primarily from Hunting | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
Operating Segments | Trading | Other Non-Timber/Carbon Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
Operating Segments | Trading | Agency Fee Income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 347 | 316 | 681 | 667 |
Intersegment | Trading | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | 116 | 49 | 246 | 98 |
Intersegment | Elim. | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenue | $ (116) | $ (49) | $ (246) | $ (98) |
REVENUE - Disaggregation of R_2
REVENUE - Disaggregation of Revenue by Contract Type (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | $ 208,506 | $ 246,023 | $ 387,343 | $ 467,820 |
Total Stumpage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 30,774 | 21,501 | 61,981 | 63,095 |
Stumpage Pay-as-Cut | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 30,493 | 21,326 | 60,970 | 57,532 |
Stumpage Lump Sum | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 281 | 175 | 1,011 | 5,563 |
Total Delivered | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 132,763 | 177,017 | 253,368 | 314,289 |
Total Delivered | Delivered Wood (Domestic) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 65,081 | 86,359 | 135,659 | 172,039 |
Total Delivered | Delivered Wood (Export) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 67,682 | 90,658 | 117,709 | 142,250 |
Total Timber Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 163,537 | 198,518 | 315,349 | 377,384 |
Southern Timber | Total Stumpage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 30,774 | 21,416 | 61,357 | 57,622 |
Southern Timber | Stumpage Pay-as-Cut | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 30,493 | 21,326 | 60,970 | 57,532 |
Southern Timber | Stumpage Lump Sum | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 281 | 90 | 387 | 90 |
Southern Timber | Total Delivered | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 27,633 | 36,804 | 59,496 | 71,574 |
Southern Timber | Total Delivered | Delivered Wood (Domestic) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 25,437 | 33,248 | 54,850 | 65,376 |
Southern Timber | Total Delivered | Delivered Wood (Export) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 2,196 | 3,556 | 4,646 | 6,198 |
Pacific Northwest Timber | Total Stumpage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 85 | 624 | 5,473 |
Pacific Northwest Timber | Stumpage Pay-as-Cut | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
Pacific Northwest Timber | Stumpage Lump Sum | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 85 | 624 | 5,473 |
Pacific Northwest Timber | Total Delivered | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 29,985 | 37,797 | 62,857 | 77,542 |
Pacific Northwest Timber | Total Delivered | Delivered Wood (Domestic) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 26,996 | 33,956 | 56,164 | 73,402 |
Pacific Northwest Timber | Total Delivered | Delivered Wood (Export) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 2,989 | 3,841 | 6,693 | 4,140 |
New Zealand Timber | Total Stumpage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
New Zealand Timber | Stumpage Pay-as-Cut | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
New Zealand Timber | Stumpage Lump Sum | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
New Zealand Timber | Total Delivered | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 60,193 | 75,098 | 103,958 | 124,793 |
New Zealand Timber | Total Delivered | Delivered Wood (Domestic) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 12,559 | 18,051 | 24,154 | 31,532 |
New Zealand Timber | Total Delivered | Delivered Wood (Export) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 47,634 | 57,047 | 79,804 | 93,261 |
Trading | Total Stumpage | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
Trading | Stumpage Pay-as-Cut | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
Trading | Stumpage Lump Sum | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 0 | 0 | 0 | 0 |
Trading | Total Delivered | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 14,952 | 27,318 | 27,057 | 40,380 |
Trading | Total Delivered | Delivered Wood (Domestic) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 89 | 1,104 | 491 | 1,729 |
Trading | Total Delivered | Delivered Wood (Export) | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 14,863 | 26,214 | 26,566 | 38,651 |
Operating Segments | Southern Timber | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 68,310 | 66,271 | 140,152 | 143,035 |
Operating Segments | Southern Timber | Total Timber Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 58,407 | 58,220 | 120,853 | 129,196 |
Operating Segments | Pacific Northwest Timber | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 32,317 | 39,157 | 66,736 | 85,437 |
Operating Segments | Pacific Northwest Timber | Total Timber Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 29,985 | 37,882 | 63,481 | 83,015 |
Operating Segments | New Zealand Timber | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 60,898 | 78,882 | 105,004 | 130,271 |
Operating Segments | New Zealand Timber | Total Timber Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 60,193 | 75,098 | 103,958 | 124,793 |
Operating Segments | Trading | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | 15,299 | 27,634 | 27,738 | 41,047 |
Operating Segments | Trading | Total Timber Sales | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from Contracts with Customers | $ 14,952 | $ 27,318 | $ 27,057 | $ 40,380 |
NONCONTROLLING INTERESTS - Narr
NONCONTROLLING INTERESTS - Narrative (Details) - Matariki Forestry Group a in Thousands | Jun. 30, 2023 a |
Schedule of Equity Method Investments [Line Items] | |
Acres of timberland owned | 419 |
Rayonier | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage by parent (as a percent) | 77% |
Rayonier New Zealand Subsidiary | |
Schedule of Equity Method Investments [Line Items] | |
Noncontrolling interest ownership percentage by noncontrolling owners (as a percent) | 23% |
NONCONTROLLING INTERESTS - Sche
NONCONTROLLING INTERESTS - Schedule of Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Increase (Decrease) in Temporary Equity [Roll Forward] | ||||
Beginning noncontrolling interests in the operating partnership | $ 82,461 | $ 136,239 | $ 105,763 | $ 133,823 |
Adjustment of noncontrolling interests in the operating partnership | (4,296) | (11,412) | (1,920) | (8,767) |
Conversions of Redeemable Operating Partnership Units to Common Shares | (304) | (42) | (24,185) | (146) |
Net Income attributable to noncontrolling interests in the operating partnership | 318 | 546 | 492 | 1,214 |
Other Comprehensive Income (Loss) attributable to noncontrolling interests in the operating partnership | 58 | (575) | (1,052) | (474) |
Distributions to noncontrolling interests in the operating partnership | (705) | (945) | (1,566) | (1,839) |
Total noncontrolling interests in the operating partnership | $ 77,532 | $ 123,811 | $ 77,532 | $ 123,811 |
EARNINGS PER SHARE AND PER UN_3
EARNINGS PER SHARE AND PER UNIT - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator: | ||||||
Net Income | $ 19,096 | $ 25,287 | $ 26,534 | $ 56,286 | ||
Less: Net income attributable to noncontrolling interests in the operating partnership | (318) | $ (174) | (546) | $ (669) | (492) | (1,214) |
Less: Net loss (income) attributable to noncontrolling interests in consolidated affiliates | 245 | (637) | 1,281 | (1,650) | ||
Net Income | $ 19,023 | $ 24,104 | $ 27,323 | $ 53,422 | ||
Denominator: | ||||||
Denominator for basic earnings per common share - weighted average shares (in shares) | 148,218,436 | 146,257,311 | 147,800,265 | 145,846,026 | ||
Basic earnings per common share attributable to Rayonier Inc (in dollars per share) | $ 0.13 | $ 0.16 | $ 0.18 | $ 0.37 | ||
Numerator: | ||||||
Net Income | $ 19,096 | $ 25,287 | $ 26,534 | $ 56,286 | ||
Less: Net loss (income) attributable to noncontrolling interests in consolidated affiliates | 245 | (637) | 1,281 | (1,650) | ||
Net income attributable to Rayonier Inc., before net income attributable to noncontrolling interests in the operating partnership | $ 19,341 | $ 24,650 | $ 27,815 | $ 54,636 | ||
Denominator: | ||||||
Denominator for basic earnings per common share - weighted average shares (in shares) | 148,218,436 | 146,257,311 | 147,800,265 | 145,846,026 | ||
Add: Dilutive effect of: | ||||||
Stock options (in shares/units) | 0 | 8,100 | 943 | 7,664 | ||
Performance shares, restricted shares and restricted stock units (in shares/units) | 269,994 | 666,653 | 441,204 | 730,773 | ||
Noncontrolling interests in operating partnership units (in shares) | 2,476,761 | 3,312,315 | 2,785,928 | 3,313,543 | ||
Denominator for diluted earnings per unit - adjusted weighted average units (in shares/units) | 150,965,191 | 150,244,379 | 151,028,340 | 149,898,006 | ||
Diluted earnings per common share attributable to Rayonier Inc (in dollars per share) | $ 0.13 | $ 0.16 | $ 0.18 | $ 0.36 | ||
Rayonier Limited Partnership | ||||||
Numerator: | ||||||
Net Income | $ 19,096 | 7,437 | $ 25,287 | 30,998 | $ 26,534 | $ 56,286 |
Less: Net loss (income) attributable to noncontrolling interests in consolidated affiliates | 245 | (637) | 1,281 | (1,650) | ||
Net Income | $ 19,341 | $ 24,650 | $ 27,815 | $ 54,636 | ||
Denominator: | ||||||
Denominator for basic earnings per unit - weighted average units (in units) | 150,695,197 | 149,569,626 | 150,586,193 | 149,159,569 | ||
Basic earnings per unit attributable to Rayonier, L.P. (in dollars per unit) | $ 0.13 | $ 0.16 | $ 0.18 | $ 0.37 | ||
Numerator: | ||||||
Net Income | $ 19,096 | $ 7,437 | $ 25,287 | $ 30,998 | $ 26,534 | $ 56,286 |
Less: Net loss (income) attributable to noncontrolling interests in consolidated affiliates | $ 245 | $ (637) | $ 1,281 | $ (1,650) | ||
Denominator: | ||||||
Denominator for basic earnings per unit - weighted average units (in units) | 150,695,197 | 149,569,626 | 150,586,193 | 149,159,569 | ||
Add: Dilutive effect of: | ||||||
Stock options (in shares/units) | 0 | 8,100 | 943 | 7,664 | ||
Performance shares, restricted shares and restricted stock units (in shares/units) | 269,994 | 666,653 | 441,204 | 730,773 | ||
Denominator for diluted earnings per unit - adjusted weighted average units (in shares/units) | 150,965,191 | 150,244,379 | 151,028,340 | 149,898,006 | ||
Diluted earnings per unit attributable to Rayonier, L.P. (in dollars per unit) | $ 0.13 | $ 0.16 | $ 0.18 | $ 0.36 |
EARNINGS PER SHARE AND PER UN_4
EARNINGS PER SHARE AND PER UNIT - Antidilutive Securities (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive unit equivalents excluded from the computations of diluted earnings per unit (in shares) | 241,316 | 109,515 | 152,992 | 54,884 |
Rayonier Limited Partnership | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive unit equivalents excluded from the computations of diluted earnings per unit (in shares) | 241,316 | 109,515 | 152,992 | 54,884 |
DEBT - Schedule of Long Term De
DEBT - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||
Total principal debt | $ 1,520,031 | |
Less: Unamortized discounts | (2,940) | |
Less: Deferred financing costs | (4,894) | |
Total long-term debt | $ 1,512,197 | $ 1,514,721 |
Senior Notes due 2031 at a fixed interest rate of 2.75% | ||
Debt Instrument [Line Items] | ||
Stated fixed interest rate (as a percent) | 2.75% | |
Total principal debt | $ 450,000 | |
2015 Term Loan borrowings due 2028 at a variable interest rate of 6.76% at June 30, 2023 | ||
Debt Instrument [Line Items] | ||
Stated fixed interest rate (as a percent) | 6.76% | |
Total principal debt | $ 350,000 | |
Effective fixed interest rate (as a percent) | 3.03% | |
2015 Term Loan borrowings due 2028 at a variable interest rate of 6.76% at June 30, 2023 | SOFR | ||
Debt Instrument [Line Items] | ||
Basis points on periodic interest rate (as a percent) | 1.70% | |
2022 Incremental Term Loan borrowings due 2027 at a variable interest rate of 6.76% at June 30, 2023 | ||
Debt Instrument [Line Items] | ||
Stated fixed interest rate (as a percent) | 6.76% | |
Total principal debt | $ 250,000 | |
Effective fixed interest rate (as a percent) | 5.38% | |
2022 Incremental Term Loan borrowings due 2027 at a variable interest rate of 6.76% at June 30, 2023 | SOFR | ||
Debt Instrument [Line Items] | ||
Basis points on periodic interest rate (as a percent) | 1.70% | |
2016 Incremental Term Loan borrowings due 2026 at a variable interest rate of 6.81% at June 30, 2023 | ||
Debt Instrument [Line Items] | ||
Stated fixed interest rate (as a percent) | 6.81% | |
Total principal debt | $ 200,000 | |
Effective fixed interest rate (as a percent) | 2.40% | |
2016 Incremental Term Loan borrowings due 2026 at a variable interest rate of 6.81% at June 30, 2023 | SOFR | ||
Debt Instrument [Line Items] | ||
Basis points on periodic interest rate (as a percent) | 1.75% | |
2021 Incremental Term Loan borrowings due 2029 at a variable interest rate of 6.71% at June 30, 2023 | ||
Debt Instrument [Line Items] | ||
Stated fixed interest rate (as a percent) | 6.71% | |
Total principal debt | $ 200,000 | |
Effective fixed interest rate (as a percent) | 1.46% | |
2021 Incremental Term Loan borrowings due 2029 at a variable interest rate of 6.71% at June 30, 2023 | SOFR | ||
Debt Instrument [Line Items] | ||
Basis points on periodic interest rate (as a percent) | 1.65% | |
New Zealand subsidiary noncontrolling interests shareholder loan due 2026 at a fixed interest rate of 3.64% (a) | Matariki Forestry Group | ||
Debt Instrument [Line Items] | ||
Stated fixed interest rate (as a percent) | 3.64% | |
Total principal debt | $ 24,511 | |
New Zealand subsidiary noncontrolling interests shareholder loan due 2027 at a fixed interest rate of 6.48% (a) | Matariki Forestry Group | ||
Debt Instrument [Line Items] | ||
Stated fixed interest rate (as a percent) | 6.48% | |
Total principal debt | $ 24,511 | |
New Zealand subsidiary noncontrolling interests shareholder loan due 2025 at a fixed interest rate of 2.95% (a) | Matariki Forestry Group | ||
Debt Instrument [Line Items] | ||
Stated fixed interest rate (as a percent) | 2.95% | |
Total principal debt | $ 21,009 |
DEBT - Schedule of Long Term Ma
DEBT - Schedule of Long Term Maturities (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 0 |
2024 | 0 |
2025 | 21,009 |
2026 | 224,511 |
2027 | 274,511 |
Thereafter | 1,000,000 |
Total Debt | $ 1,520,031 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) $ in Thousands, $ in Millions | 1 Months Ended | 6 Months Ended | |
Jun. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2023 NZD ($) | |
Working Capital Facility | |||
Debt Instrument [Line Items] | |||
Borrowings, net of repayments | $ 0 | ||
Remaining borrowing capacity | $ 20 | ||
Maximum borrowing capacity | $ 20 | ||
Debt instrument, term (in years) | 1 month | ||
Revolving Credit Facility borrowings due 2025 at an average variable interest rate of 1.3% at June 30, 2023 | |||
Debt Instrument [Line Items] | |||
Borrowings, net of repayments | 0 | ||
Remaining borrowing capacity | $ 296,200 | 296,200 | |
Amount to secure outstanding letters of credit | $ 3,800 | $ 3,800 |
DEBT - Debt Covenants (Details)
DEBT - Debt Covenants (Details) | Jun. 30, 2023 |
Debt Disclosure [Abstract] | |
Covenant EBITDA to consolidated interest expense, covenant requirement | 2.5 |
Covenant EBITDA to consolidated interest expense, actual ratio | 7.4 |
Covenant EBITDA to consolidated interest expense, favorable | 4.9 |
Covenant debt to net worth plus covenant debt, covenant requirement (as a percent) | 0.65 |
Covenant debt to net worth plus covenant debt, actual ratio (as a percent) | 0.46 |
Covenant debt to net worth plus covenant debt, favorable (as a percent) | 0.19 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Derivatives Designated as Cash Flow Hedges | |
Derivative [Line Items] | |
Amount expected to be reclassified into earnings in next 12 months | $ 24,132 |
Forecasted Sales and Purchases, term 1 | New Zealand JV | |
Derivative [Line Items] | |
Length of time, foreign currency cash flow hedge | 12 months |
Minimum | Forecasted Sales and Purchases, term 1 | New Zealand JV | |
Derivative [Line Items] | |
Percent of forecast sales and purchases hedged for 12 months (as a percent) | 50% |
Minimum | Forecasted Sales and Purchases, term 2 | New Zealand JV | |
Derivative [Line Items] | |
Length of time, foreign currency cash flow hedge | 12 months |
Minimum | Forecasted Sales and Purchases, term 3 | New Zealand JV | |
Derivative [Line Items] | |
Length of time, foreign currency cash flow hedge | 18 months |
Minimum | Forecasted Sales and Purchases, term 4 | New Zealand JV | |
Derivative [Line Items] | |
Length of time, foreign currency cash flow hedge | 24 months |
Minimum | Forecasted Sales and Purchases, term 5 | New Zealand JV | |
Derivative [Line Items] | |
Length of time, foreign currency cash flow hedge | 36 months |
Maximum | Forecasted Sales and Purchases, term 1 | New Zealand JV | |
Derivative [Line Items] | |
Percent of forecast sales and purchases hedged for 12 months (as a percent) | 90% |
Maximum | Forecasted Sales and Purchases, term 2 | New Zealand JV | |
Derivative [Line Items] | |
Length of time, foreign currency cash flow hedge | 18 months |
Percent of forecast sales and purchases hedged for 12 to 18 months (as a percent) | 75% |
Maximum | Forecasted Sales and Purchases, term 3 | New Zealand JV | |
Derivative [Line Items] | |
Length of time, foreign currency cash flow hedge | 24 months |
Percent of forecast sales and purchases hedged for 18 to 24 months (as a percent) | 50% |
Maximum | Forecasted Sales and Purchases, term 4 | New Zealand JV | |
Derivative [Line Items] | |
Length of time, foreign currency cash flow hedge | 36 months |
Percent of forecast sales and purchases hedged for 24 to 36 months (as a percent) | 50% |
Maximum | Forecasted Sales and Purchases, term 5 | New Zealand JV | |
Derivative [Line Items] | |
Length of time, foreign currency cash flow hedge | 48 months |
Percent of forecast sales and purchases hedged for 36 to 48 months (as a percent) | 25% |
DERIVATIVE FINANCIAL INSTRUME_4
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Outstanding Derivative Products (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Credit Spread Option | SOFR | |
Derivative [Line Items] | |
Basis points on periodic interest rate (as a percent) | 0.10% |
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Interest Rate Swap 1 | |
Derivative [Line Items] | |
Term | 9 years |
Notional Amount | $ 170 |
Fixed Rate of Swap | 2.10% |
Bank Margin on Debt | 1.70% |
Total Effective Interest Rate | 3.80% |
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Interest Rate Swap 2 | |
Derivative [Line Items] | |
Term | 9 years |
Notional Amount | $ 180 |
Fixed Rate of Swap | 2.26% |
Bank Margin on Debt | 1.70% |
Total Effective Interest Rate | 3.96% |
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Interest Rate Swap 3 | |
Derivative [Line Items] | |
Term | 10 years |
Notional Amount | $ 100 |
Fixed Rate of Swap | 1.50% |
Bank Margin on Debt | 1.75% |
Total Effective Interest Rate | 3.25% |
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Interest Rate Swap 4 | |
Derivative [Line Items] | |
Term | 10 years |
Notional Amount | $ 100 |
Fixed Rate of Swap | 1.51% |
Bank Margin on Debt | 1.75% |
Total Effective Interest Rate | 3.26% |
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Interest Rate Swap 5 | |
Derivative [Line Items] | |
Term | 7 years |
Notional Amount | $ 200 |
Fixed Rate of Swap | 0.67% |
Bank Margin on Debt | 1.65% |
Total Effective Interest Rate | 2.32% |
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Interest Rate Swap 6 | |
Derivative [Line Items] | |
Term | 5 years |
Notional Amount | $ 100 |
Fixed Rate of Swap | 3.72% |
Bank Margin on Debt | 1.70% |
Total Effective Interest Rate | 5.42% |
DERIVATIVE FINANCIAL INSTRUME_5
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Income Statement Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Cash flow hedge, gain (loss) recognized in income | $ 11,942 | $ (12,319) | $ 5,755 | $ 40,427 | |||
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Forward-Starting Interest Rate Swap 1 | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Term | 4 years | ||||||
Notional Amount | $ 100,000 | $ 100,000 | |||||
Fixed Rate of Swap | 0.78% | 0.78% | |||||
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Forward-Starting Interest Rate Swap 2 | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Term | 4 years | ||||||
Notional Amount | $ 50,000 | $ 50,000 | |||||
Fixed Rate of Swap | 0.64% | 0.64% | |||||
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Forward-Starting Interest Rate Swap 3 | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Term | 4 years | ||||||
Notional Amount | $ 50,000 | $ 50,000 | |||||
Fixed Rate of Swap | 3.29% | 3.29% | |||||
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Foreign currency exchange contracts | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Notional Amount | $ 124,600 | $ 124,600 | $ 138,250 | ||||
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Foreign currency exchange contracts | Other comprehensive income (loss) | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Cash flow hedge, gain (loss) recognized in income | 188 | (14,438) | 4,001 | $ (10,909) | |||
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Foreign currency exchange contracts | Other operating (expense) income, net | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Cash flow hedge, gain (loss) recognized in income | (1,577) | 86 | (4,005) | 70 | |||
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Foreign currency option contracts | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Notional Amount | 82,000 | 82,000 | $ 78,000 | ||||
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Foreign currency option contracts | Other comprehensive income (loss) | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Cash flow hedge, gain (loss) recognized in income | (561) | (686) | (831) | (550) | |||
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Foreign currency option contracts | Other operating (expense) income, net | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Cash flow hedge, gain (loss) recognized in income | (48) | 0 | (48) | 0 | |||
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Interest rate products | Other comprehensive income (loss) | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Cash flow hedge, gain (loss) recognized in income | 17,695 | 14,636 | 8,035 | 49,765 | |||
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Interest rate products | Interest expense, net | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Cash flow hedge, gain (loss) recognized in income | $ (4,314) | $ 1,948 | $ (7,777) | $ 4,618 |
DERIVATIVE FINANCIAL INSTRUME_6
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Reclassified Amounts Into Earnings (Details) - Derivatives Designated as Cash Flow Hedges $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount expected to be reclassified into earnings in next 12 months | $ 24,132 |
Foreign currency exchange contracts | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount expected to be reclassified into earnings in next 12 months | (3,108) |
Foreign currency option contracts | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount expected to be reclassified into earnings in next 12 months | (324) |
Interest rate products | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount expected to be reclassified into earnings in next 12 months | $ 27,564 |
DERIVATIVE FINANCIAL INSTRUME_7
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Notional Amounts (Details) - Derivatives Designated as Cash Flow Hedges - Derivatives Designated as Cash Flow Hedges - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Realized (gain) loss on foreign currency exchange contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 124,600 | $ 138,250 |
Realized loss on foreign currency option contracts | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 82,000 | 78,000 |
Forward-starting interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | 200,000 | 150,000 |
Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Amount | $ 850,000 | $ 850,000 |
DERIVATIVE FINANCIAL INSTRUME_8
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES - Balance Sheet Location (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | $ 74,395 | $ 76,307 |
Fair value, derivative liability | (6,615) | (7,546) |
Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 36 | 91 |
Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 74,359 | 76,216 |
Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (4,803) | (5,804) |
Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (1,812) | (1,742) |
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Foreign currency exchange contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 21 | 25 |
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Foreign currency exchange contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 544 | 1,303 |
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Foreign currency exchange contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (4,338) | (5,457) |
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Foreign currency exchange contracts | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (768) | (410) |
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Foreign currency option contracts | Other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 15 | 66 |
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Foreign currency option contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 1,182 | 2,131 |
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Foreign currency option contracts | Other current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (465) | (347) |
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Foreign currency option contracts | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | (1,044) | (1,281) |
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Interest rate swaps | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | 59,192 | 60,843 |
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Interest rate swaps | Other non-current liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative liability | 0 | (51) |
Derivatives Designated as Cash Flow Hedges | Derivatives Designated as Cash Flow Hedges | Forward-starting interest rate swaps | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Fair value, derivative asset | $ 13,441 | $ 11,939 |
FAIR VALUE MEASUREMENTS - Carry
FAIR VALUE MEASUREMENTS - Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted cash | $ 4,962 | $ 1,152 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 88,404 | 114,255 |
Restricted cash | 4,962 | 1,152 |
Long-term debt | (1,512,197) | (1,514,721) |
Noncontrolling interests in the operating partnership | 77,532 | 105,763 |
Carrying Amount | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps, assets | 59,192 | 60,792 |
Carrying Amount | Forward-starting interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps, assets | 13,441 | 11,939 |
Carrying Amount | Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts, liabilities | (4,541) | (4,539) |
Carrying Amount | Foreign currency option contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts, liabilities | (312) | |
Foreign currency contracts, assets | 569 | |
Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 88,404 | 114,255 |
Restricted cash | 4,962 | 1,152 |
Long-term debt | 0 | 0 |
Noncontrolling interests in the operating partnership | 0 | 0 |
Fair Value | Level 1 | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps, assets | 0 | 0 |
Fair Value | Level 1 | Forward-starting interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps, assets | 0 | 0 |
Fair Value | Level 1 | Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts, liabilities | 0 | 0 |
Fair Value | Level 1 | Foreign currency option contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts, liabilities | 0 | |
Foreign currency contracts, assets | 0 | |
Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Long-term debt | (1,429,173) | (1,438,736) |
Noncontrolling interests in the operating partnership | 77,532 | 105,763 |
Fair Value | Level 2 | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps, assets | 59,192 | 60,792 |
Fair Value | Level 2 | Forward-starting interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps, assets | 13,441 | 11,939 |
Fair Value | Level 2 | Foreign currency exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts, liabilities | (4,541) | (4,539) |
Fair Value | Level 2 | Foreign currency option contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contracts, liabilities | $ (312) | |
Foreign currency contracts, assets | $ 569 |
ENVIRONMENTAL AND NATURAL RES_3
ENVIRONMENTAL AND NATURAL RESOURCE DAMAGE LIABILITIES - Schedule of Liabilities (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Accrual for Environmental Loss Contingencies [Roll Forward] | |
Beginning balance, non-current portion | $ 14,418 |
Beginning balance, plus: current portion | 1,175 |
Beginning balance | 15,593 |
Expenditures charged to liabilities | (223) |
Decrease to liabilities | (20) |
Ending balance | 15,350 |
Ending balance, less: current portion | (2,371) |
Ending balance, non-current portion | $ 12,979 |
ENVIRONMENTAL AND NATURAL RES_4
ENVIRONMENTAL AND NATURAL RESOURCE DAMAGE LIABILITIES - Narrative (Details) | 6 Months Ended |
Jun. 30, 2023 | |
Minimum | Millsite Cleanup and Natural Resource Damages Restoration | |
Property, Plant and Equipment [Line Items] | |
Natural resource damages restoration monitoring term (in years) | 1 year |
Minimum | Port Gamble Location | |
Property, Plant and Equipment [Line Items] | |
Natural resource damages restoration monitoring term (in years) | 15 years |
Maximum | Millsite Cleanup and Natural Resource Damages Restoration | |
Property, Plant and Equipment [Line Items] | |
Natural resource damages restoration monitoring term (in years) | 2 years |
Maximum | Port Gamble Location | |
Property, Plant and Equipment [Line Items] | |
Natural resource damages restoration monitoring term (in years) | 20 years |
GUARANTEES (Details)
GUARANTEES (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | $ 25,466 |
Standby Letters of Credit | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | 3,779 |
Letter of credit for development project | 2,900 |
Surety Bonds | |
Guarantor Obligations [Line Items] | |
Maximum Potential Payment | $ 21,687 |
HIGHER AND BETTER USE TIMBERL_3
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Real Estate, Land and Land Development Costs [Roll Forward] | |
Non-current portion, beginning balance | $ 115,097 |
Plus: Current portion, beginning balance | 17,909 |
Total balance, beginning balance | 133,006 |
Non-cash cost of land and improved development | (11,392) |
Amortization of parcel real estate development investments | (5,257) |
Timber depletion from harvesting activities and basis of timber sold in real estate sales | (672) |
Capitalized real estate development investments | 19,045 |
Capital expenditures (silviculture) | 23 |
Intersegment transfers | 553 |
Total balance, ending balance | 135,306 |
Less: Current portion, ending balance | (23,520) |
Non-current portion, ending balance | 111,786 |
Capitalized interest | 400 |
Parcel real estate development investments | 4,300 |
Land and Timber | |
Real Estate, Land and Land Development Costs [Roll Forward] | |
Non-current portion, beginning balance | 91,374 |
Plus: Current portion, beginning balance | 408 |
Total balance, beginning balance | 91,782 |
Non-cash cost of land and improved development | (1,055) |
Amortization of parcel real estate development investments | 0 |
Timber depletion from harvesting activities and basis of timber sold in real estate sales | (672) |
Capitalized real estate development investments | 0 |
Capital expenditures (silviculture) | 23 |
Intersegment transfers | 553 |
Total balance, ending balance | 90,631 |
Less: Current portion, ending balance | (1,346) |
Non-current portion, ending balance | 89,285 |
Development Investments | |
Real Estate, Land and Land Development Costs [Roll Forward] | |
Non-current portion, beginning balance | 23,723 |
Plus: Current portion, beginning balance | 17,501 |
Total balance, beginning balance | 41,224 |
Non-cash cost of land and improved development | (10,337) |
Amortization of parcel real estate development investments | (5,257) |
Timber depletion from harvesting activities and basis of timber sold in real estate sales | 0 |
Capitalized real estate development investments | 19,045 |
Capital expenditures (silviculture) | 0 |
Intersegment transfers | 0 |
Total balance, ending balance | 44,675 |
Less: Current portion, ending balance | (22,174) |
Non-current portion, ending balance | $ 22,501 |
INVENTORY (Details)
INVENTORY (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Inventory [Line Items] | ||
Total inventory | $ 32,331 | $ 23,729 |
Real Estate Inventory | ||
Inventory [Line Items] | ||
Total inventory | 23,520 | 17,909 |
Log inventory | ||
Inventory [Line Items] | ||
Total inventory | 8,508 | 5,347 |
Carbon Unit Inventory | ||
Inventory [Line Items] | ||
Total inventory | $ 303 | $ 473 |
OTHER OPERATING (EXPENSE) INC_3
OTHER OPERATING (EXPENSE) INCOME, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Other Income and Expenses [Abstract] | ||||
(Loss) gain on foreign currency remeasurement, net of cash flow hedges | $ (1,674) | $ 1,249 | $ (4,157) | $ 677 |
Gain on sale or disposal of property and equipment | 35 | 6 | 37 | 31 |
Equity loss related to Bainbridge Landing LLC joint venture | 0 | (145) | 0 | (370) |
Miscellaneous income (expense), net | 238 | (309) | 203 | (520) |
Total | $ (1,401) | $ 801 | $ (3,917) | $ (182) |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) plan | Jun. 30, 2022 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of qualified defined benefit plans | plan | 1 | |||
Weighted-average expected long-term rate of return on plan assets (as a percent) | 5% | |||
Pension | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, expected future employer contributions, next fiscal year | $ 7,600 | $ 7,600 | ||
Service cost | 0 | $ 0 | 0 | $ 0 |
Interest cost | 844 | 609 | 1,689 | 1,217 |
Expected return on plan assets | (887) | (872) | (1,776) | (1,743) |
Amortization of losses | 1 | 184 | 3 | 369 |
Net periodic benefit (credit) cost | (42) | (79) | (84) | (157) |
Postretirement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit plan, expected future employer contributions, next fiscal year | 1,300 | 1,300 | ||
Service cost | 1 | 2 | 2 | 3 |
Interest cost | 17 | 13 | 35 | 26 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of losses | 0 | 4 | 0 | 7 |
Net periodic benefit (credit) cost | $ 18 | $ 19 | $ 37 | $ 36 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) | Jun. 30, 2023 |
Operating Partnership | |
Income Taxes | |
Ownership interest (as a percent) | 98.40% |
INCOME TAXES - Schedule of Comp
INCOME TAXES - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ (193) | $ (1,304) | $ (1,230) | $ (6,818) |
INCOME TAXES - Schedule of Effe
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||
Annualized effective tax rate after discrete items | 3.90% | 9.20% |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Schedule of Components (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | $ 1,865,395 | |
Other comprehensive income (loss) before reclassifications | (2,462) | $ 55,435 |
Amounts reclassified from accumulated other comprehensive income (loss) | (9,056) | (18) |
Net other comprehensive income (loss) | (11,518) | 55,417 |
Ending balance | 1,825,420 | 1,865,395 |
Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | 35,813 | (19,604) |
Ending balance | 24,295 | 35,813 |
Foreign currency translation (loss) gains | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (18,067) | 4,215 |
Other comprehensive income (loss) before reclassifications | (12,342) | (22,282) |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 |
Net other comprehensive income (loss) | (12,342) | (22,282) |
Ending balance | (30,409) | (18,067) |
Net investment hedges of New Zealand subsidiary | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | 1,321 | 1,321 |
Other comprehensive income (loss) before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 |
Net other comprehensive income (loss) | 0 | 0 |
Ending balance | 1,321 | 1,321 |
Cash flow hedges | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | 67,204 | (9,163) |
Other comprehensive income (loss) before reclassifications | 9,792 | 78,166 |
Amounts reclassified from accumulated other comprehensive income (loss) | (10,023) | (1,799) |
Net other comprehensive income (loss) | (231) | 76,367 |
Ending balance | 66,973 | 67,204 |
Cash flow hedges | Interest rate swaps | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Other comprehensive income (loss) before reclassifications | 8,000 | 75,000 |
Employee benefit plans | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (10,209) | (11,836) |
Other comprehensive income (loss) before reclassifications | 0 | 874 |
Amounts reclassified from accumulated other comprehensive income (loss) | 3 | 753 |
Net other comprehensive income (loss) | 3 | 1,627 |
Ending balance | (10,206) | (10,209) |
Total Rayonier, L.P. | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | 40,249 | (15,463) |
Other comprehensive income (loss) before reclassifications | (2,550) | 56,758 |
Amounts reclassified from accumulated other comprehensive income (loss) | (10,020) | (1,046) |
Net other comprehensive income (loss) | (12,570) | 55,712 |
Ending balance | 27,679 | 40,249 |
Allocation to Operating Partnership | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ||
Beginning balance | (4,436) | (4,141) |
Other comprehensive income (loss) before reclassifications | 88 | (1,323) |
Amounts reclassified from accumulated other comprehensive income (loss) | 964 | 1,028 |
Net other comprehensive income (loss) | 1,052 | (295) |
Ending balance | $ (3,384) | $ (4,436) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) - Reclassified AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other operating expense, net | $ 1,401 | $ (801) | $ 3,917 | $ 182 |
Interest expense, net | (12,457) | (9,083) | (24,158) | (17,420) |
Income tax expense | (193) | (1,304) | (1,230) | (6,818) |
Net (gain) loss on cash flow hedges reclassified from accumulated other comprehensive income | $ (19,096) | $ (25,287) | (26,534) | (56,286) |
Amount reclassified from accumulated other comprehensive income (loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net (gain) loss on cash flow hedges reclassified from accumulated other comprehensive income | (10,023) | 4,657 | ||
Cash Flow Hedges, Parent | Amount reclassified from accumulated other comprehensive income (loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Income tax expense | 875 | (15) | ||
Cash Flow Hedges, Parent | Amount reclassified from accumulated other comprehensive income (loss) | Foreign currency exchange contracts | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other operating expense, net | (4,005) | 71 | ||
Cash Flow Hedges, Parent | Amount reclassified from accumulated other comprehensive income (loss) | Realized loss on foreign currency option contracts | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Other operating expense, net | (48) | 0 | ||
Cash Flow Hedges, Parent | Amount reclassified from accumulated other comprehensive income (loss) | Interest rate swaps | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Interest expense, net | (7,777) | 4,617 | ||
Cash Flow Hedges, Noncontrolling Interest | Amount reclassified from accumulated other comprehensive income (loss) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Comprehensive loss (income) attributable to noncontrolling interests | $ 932 | $ (16) |
RESTRICTED CASH - Narrative (De
RESTRICTED CASH - Narrative (Details) | 6 Months Ended |
Jun. 30, 2023 | |
Restricted Cash and Investments [Abstract] | |
Period for proceeds to be returned | 180 days |
RESTRICTED CASH - Schedule of R
RESTRICTED CASH - Schedule of Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash, excluding Timber Funds: | $ 4,962 | $ 1,152 | ||
Cash and cash equivalents | 88,404 | 114,255 | $ 280,280 | |
Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows | 93,366 | $ 115,407 | 296,073 | $ 369,139 |
Excluding Timber Funds | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash, excluding Timber Funds: | 4,962 | 14,329 | ||
Excluding Timber Funds | Restricted cash deposited with LKE intermediary | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash, excluding Timber Funds: | 1,646 | 13,704 | ||
Excluding Timber Funds | Restricted cash held in escrow | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash, excluding Timber Funds: | 3,316 | 625 | ||
Timber Funds | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash, Timber Funds | $ 0 | $ 1,464 |
ASSETS HELD FOR SALE (Details)
ASSETS HELD FOR SALE (Details) - Disposal Group, Held-for-sale, Not Discontinued Operations - Properties Under Contract - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Period expected for sales to finalize (in months) | 12 months | |
Assets held for sale | $ 4.2 | $ 0.7 |
Asset impairment recognized | $ 0 |