0000052827-21-000035 | 10-K | XBRL Viewer

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Cover - USD ($)	12 Months Ended
Cover - USD ($)	Dec. 31, 2020	Feb. 12, 2021	Jun. 30, 2020
Document Information [Line Items]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2020
Current Fiscal Year End Date	--12-31
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 Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
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
ICFR Auditor Attestation Flag	true
Entity Public Float			$ 3,361,710,977
Entity Common Stock, Shares Outstanding		137,827,110
Documents Incorporated by Reference	Portions of the registrant’s definitive proxy statement to be filed with the Securities and Exchange Commission in connection with the 2021 annual meeting of the shareholders of the registrant scheduled to be held May 20, 2021, are incorporated by reference in Part III hereof.
Entity Central Index key	0000052827
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false
Rayonier Limited Partnership
Document Information [Line Items]
Current Fiscal Year End Date	--12-31
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 Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
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
ICFR Auditor Attestation Flag	false
Entity Common Stock, Shares Outstanding		4,279,141
Entity Central Index key	0001806931
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
SALES	$ 859,154	$ 711,556	$ 816,138
Costs and Expenses
Cost of sales	(712,436)	(558,350)	(605,259)
Selling and general expenses	(50,645)	(41,646)	(41,951)
Other operating (expense) income, net	(21,685)	(4,533)	1,140
Costs and Expenses	(784,766)	(604,529)	(646,070)
OPERATING (LOSS) INCOME	74,388	107,027	170,068
Interest expense	(38,768)	(31,716)	(32,066)
Interest and other miscellaneous income, net	1,173	5,307	4,564
INCOME BEFORE INCOME TAXES	36,793	80,618	142,566
Income tax expense	(7,009)	(12,940)	(25,236)
NET INCOME	29,784	67,678	117,330
Less: Net (income) attributable to noncontrolling interest in the Operating Partnership	(528)	0	0
Less: Net loss (income) attributable to noncontrolling interest in consolidated affiliates	7,828	(8,573)	(15,114)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	37,084	59,105	102,216
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment, net of income tax effect of $0, $0 and $0	28,272	963	(22,759)
Cash flow hedges, net of income tax	(61,055)	(30,482)	5,029
Actuarial change and amortization of pension and postretirement plan liabilities, net of income tax effect of $0, $0 and $711	(925)	(1,350)	(1,630)
Total other comprehensive loss	(33,708)	(30,869)	(19,360)
COMPREHENSIVE (LOSS) INCOME	(3,924)	36,809	97,970
Less: Comprehensive income attributable to noncontrolling interests in the Operating Partnership	(3,068)	0	0
Less: Comprehensive loss (income) attributable to noncontrolling interest in consolidated affiliates	1,393	(9,146)	(8,931)
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC.	$ (5,599)	$ 27,663	$ 89,039
EARNINGS PER COMMON SHARE
Basic earnings per share attributable to Rayonier Inc. (in dollars per share)	$ 0.28	$ 0.46	$ 0.79
Diluted earnings per share attributable to Rayonier Inc. (in dollars per share)	$ 0.27	$ 0.46	$ 0.79
Rayonier Limited Partnership
SALES	$ 859,154	$ 711,556	$ 816,138
Costs and Expenses
Cost of sales	(712,436)	(558,350)	(605,259)
Selling and general expenses	(50,645)	(41,646)	(41,951)
Other operating (expense) income, net	(21,685)	(4,533)	1,140
Costs and Expenses	(784,766)	(604,529)	(646,070)
OPERATING (LOSS) INCOME	74,388	107,027	170,068
Interest expense	(38,768)	(31,716)	(32,066)
Interest and other miscellaneous income, net	1,173	5,307	4,564
INCOME BEFORE INCOME TAXES	36,793	80,618	142,566
Income tax expense	(7,009)	(12,940)	(25,236)
NET INCOME	29,784	67,678	117,330
Less: Net loss (income) attributable to noncontrolling interest in consolidated affiliates	7,828	(8,573)	(15,114)
NET INCOME ATTRIBUTABLE TO RAYONIER INC.	37,612	59,105	102,216
OTHER COMPREHENSIVE (LOSS) INCOME
Foreign currency translation adjustment, net of income tax effect of $0, $0 and $0	28,272	963	(22,759)
Cash flow hedges, net of income tax	(61,055)	(30,482)	5,029
Actuarial change and amortization of pension and postretirement plan liabilities, net of income tax effect of $0, $0 and $711	(925)	(1,350)	(1,630)
Total other comprehensive loss	(33,708)	(30,869)	(19,360)
COMPREHENSIVE (LOSS) INCOME	(3,924)	36,809	97,970
Less: Comprehensive loss (income) attributable to noncontrolling interest in consolidated affiliates	1,393	(9,146)	(8,931)
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC.	$ (2,531)	$ 27,663	$ 89,039
EARNINGS PER COMMON SHARE
Basic earnings per unit attributable to Rayonier, L.P. (in dollars per unit)	$ 0.28	$ 0.46	$ 0.79
Diluted earnings per unit attributable to Rayonier, L.P. (in dollars per unit)	$ 0.27	$ 0.46	$ 0.79

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Statement of Comprehensive Income [Abstract]
Foreign currency translation adjustment, tax expense	$ 0	$ 0	$ 0
Cash flow hedges, tax expense	1,845	664	1,270
Actuarial change and amortization of pension and postretirement plans, tax expense	$ 0	$ 0	$ 711

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
CURRENT ASSETS
Total cash and cash equivalents	$ 84,507	$ 68,735
Accounts receivable, less allowance for doubtful accounts of $25 and $24	49,082	27,127
Inventory	10,594	14,518
Prepaid logging roads	12,073	12,128
Prepaid expenses	4,095	2,600
Assets held for sale	3,449	0
Other current assets	6,765	867
Total current assets	170,565	125,975
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	3,262,126	2,482,047
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS	108,518	81,791
PROPERTY, PLANT AND EQUIPMENT
Land	6,548	4,131
Buildings	31,024	23,095
Machinery and equipment	4,615	4,339
Construction in progress	452	348
Total property, plant and equipment, gross	42,639	31,913
Less—accumulated depreciation	(12,238)	(9,662)
Total property, plant and equipment, net	30,401	22,251
RESTRICTED CASH	2,975	1,233
RIGHT-OF-USE ASSETS	108,992	99,942
OTHER ASSETS	45,156	47,757
TOTAL ASSETS	3,728,733	2,860,996
CURRENT LIABILITIES
Accounts payable	24,790	18,160
Accrued taxes	7,347	3,032
Accrued payroll and benefits	12,327	8,869
Accrued interest	6,325	5,205
Deferred revenue	11,112	11,440
Other current liabilities	29,234	22,480
Total current liabilities	91,135	151,186
Long-term debt, net of deferred financing costs	1,360,515	973,129
PENSION AND OTHER POSTRETIREMENT BENEFITS	23,344	25,311
LONG-TERM LEASE LIABILITY	100,251	90,481
OTHER NON-CURRENT LIABILITIES	160,722	83,247
COMMITMENTS AND CONTINGENCIES
NONCONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP/REDEEMABLE OPERATING PARTNERSHIP UNITS 4,428,900 and 0 Units outstanding, respectively	130,121	0
SHAREHOLDERS’ EQUITY
Common Shares, 480,000,000 shares authorized, 137,678,822 and 129,331,069 shares issued and outstanding	1,101,675	888,177
Retained earnings	446,267	583,006
Accumulated other comprehensive (loss) income	(73,885)	(31,202)
TOTAL RAYONIER INC. SHAREHOLDERS’ EQUITY	1,474,057	1,439,981
Noncontrolling interests in consolidated affiliates	388,588	97,661
TOTAL SHAREHOLDERS’ EQUITY	1,862,645	1,537,642
Partners' Capital [Abstract]
Accumulated other comprehensive (loss) income	(73,885)	(31,202)
TOTAL LIABILITIES, NONCONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP AND SHAREHOLDERS’ EQUITY	3,728,733	2,860,996
Excluding Timber Funds
CURRENT ASSETS
Total cash and cash equivalents	80,454	68,735
CURRENT LIABILITIES
Current maturities of long-term debt, excluding Timber Funds	0	82,000
Long-term debt, net of deferred financing costs	1,300,336	973,129
Timber Funds
CURRENT ASSETS
Total cash and cash equivalents	4,053	0
CURRENT LIABILITIES
Long-term debt, net of deferred financing costs	60,179	0
Rayonier Limited Partnership
CURRENT ASSETS
Total cash and cash equivalents	84,507	68,735
Accounts receivable, less allowance for doubtful accounts of $25 and $24	49,082	27,127
Inventory	10,594	14,518
Prepaid logging roads	12,073	12,128
Prepaid expenses	4,095	2,600
Assets held for sale	3,449	0
Other current assets	6,765	867
Total current assets	170,565	125,975
TIMBER AND TIMBERLANDS, NET OF DEPLETION AND AMORTIZATION	3,262,126	2,482,047
HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS	108,518	81,791
PROPERTY, PLANT AND EQUIPMENT
Land	6,548	4,131
Buildings	31,024	23,095
Machinery and equipment	4,615	4,339
Construction in progress	452	348
Total property, plant and equipment, gross	42,639	31,913
Less—accumulated depreciation	(12,238)	(9,662)
Total property, plant and equipment, net	30,401	22,251
RESTRICTED CASH	2,975	1,233
RIGHT-OF-USE ASSETS	108,992	99,942
OTHER ASSETS	45,156	47,757
TOTAL ASSETS	3,728,733	2,860,996
CURRENT LIABILITIES
Accounts payable	24,790	18,160
Accrued taxes	7,347	3,032
Accrued payroll and benefits	12,327	8,869
Accrued interest	6,325	5,205
Deferred revenue	11,112	11,440
Other current liabilities	29,234	22,480
Total current liabilities	91,135	151,186
PENSION AND OTHER POSTRETIREMENT BENEFITS	23,344	25,311
LONG-TERM LEASE LIABILITY	100,251	90,481
OTHER NON-CURRENT LIABILITIES	160,722	83,247
NONCONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP/REDEEMABLE OPERATING PARTNERSHIP UNITS 4,428,900 and 0 Units outstanding, respectively	130,121	0
SHAREHOLDERS’ EQUITY
Accumulated other comprehensive (loss) income	(71,345)	(31,202)
Partners' Capital [Abstract]
General partners’ capital	15,454	14,712
Limited partners’ capital	1,529,948	1,456,471
Accumulated other comprehensive (loss) income	(71,345)	(31,202)
TOTAL CONTROLLING INTEREST CAPITAL	1,474,057	1,439,981
Noncontrolling interests in consolidated affiliates	388,588	97,661
TOTAL CAPITAL	1,862,645	1,537,642
TOTAL LIABILITIES, NONCONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP AND SHAREHOLDERS’ EQUITY	3,728,733	2,860,996
Rayonier Limited Partnership \| Excluding Timber Funds
CURRENT ASSETS
Total cash and cash equivalents	80,454	68,735
CURRENT LIABILITIES
Current maturities of long-term debt, excluding Timber Funds	0	82,000
Long-term debt, net of deferred financing costs	1,300,336	973,129
Rayonier Limited Partnership \| Timber Funds
CURRENT ASSETS
Total cash and cash equivalents	4,053	0
CURRENT LIABILITIES
Long-term debt, net of deferred financing costs	$ 60,179	$ 0

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2020	Dec. 31, 2019
CURRENT ASSETS
Accounts receivable, allowance for doubtful accounts	$ 25	$ 24
Stockholders' Equity Attributable to Parent [Abstract]
Common stock, shares authorized (in shares)	480,000,000	480,000,000
Common stock, shares, issued (in shares)	137,678,822	129,331,069
Common stock, shares outstanding (in shares)	137,678,822	129,331,069
Rayonier Limited Partnership
CURRENT ASSETS
Accounts receivable, allowance for doubtful accounts	$ 25	$ 24
Temporary Equity, Shares Outstanding	4,428,900	0

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Common Shares	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss) Cumulative Effect, Period of Adoption, Adjustment	Noncontrolling Interests in Consolidated Affiliates
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment due to adoption of ASU No. 2018-02	$ 1,692,940	$ 0	$ 872,228	$ 707,378	$ 711	$ 13,417	$ (711)	$ 99,917
Beginning balance (in shares) at Dec. 31, 2017			128,970,776
Beginning balance at Dec. 31, 2017	1,692,940	0	$ 872,228	707,378	711	13,417	(711)	99,917
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment due to adoption of ASU No. 2018-02	1,654,550	$ 0	$ 884,263	672,371	$ 711	239	$ (711)	97,677
Net income (loss)	117,330			102,216				15,114
Net income attributable to noncontrolling interest in the Operating Partnership	0
Dividends	(137,934)			(137,934)
Issuance of shares under incentive stock plans, (in shares)			599,422
Issuance of shares under incentive stock plans	8,591		$ 8,591
Stock-based compensation	6,428		$ 6,428
Repurchase of common shares, (in shares)			(81,523)
Repurchase of common shares	(2,984)		$ (2,984)
Actuarial change and amortization of pension and postretirement plan liabilities	(919)					(919)
Foreign currency translation adjustment	(22,759)					(17,329)		(5,430)
Cash flow hedges	5,029					5,781		(752)
Distributions to noncontrolling interests in consolidated affiliates	(11,172)							(11,172)
Ending balance (in shares) at Dec. 31, 2018			129,488,675
Ending balance at Dec. 31, 2018	1,654,550		$ 884,263	672,371		239		97,677
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment due to adoption of ASU No. 2018-02	1,654,550		884,263	672,371		239		97,677
Cumulative-effect adjustment due to adoption of ASU No. 2018-02	1,654,550		$ 888,177	583,006		(31,202)		97,661
Net income (loss)	67,678			59,105				8,573
Net income attributable to noncontrolling interest in the Operating Partnership	0
Dividends	(140,040)			(140,040)
Issuance of shares under incentive stock plans, (in shares)			298,003
Issuance of shares under incentive stock plans	1,260		$ 1,260
Stock-based compensation	6,904		$ 6,904
Repurchase of common shares, (in shares)			(455,609)
Repurchase of common shares	(12,680)		$ (4,250)	(8,430)
Actuarial change and amortization of pension and postretirement plan liabilities	(1,350)					(1,350)
Foreign currency translation adjustment	963					784		179
Cash flow hedges	(30,482)					(30,875)		393
Distributions to noncontrolling interests in consolidated affiliates	(9,161)							(9,161)
Ending balance (in shares) at Dec. 31, 2019			129,331,069
Ending balance at Dec. 31, 2019	1,537,642		$ 888,177	583,006		(31,202)		97,661
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment due to adoption of ASU No. 2018-02	1,537,642		888,177	583,006		(31,202)		97,661
Cumulative-effect adjustment due to adoption of ASU No. 2018-02	1,537,642		$ 1,101,675	446,267		(73,885)		388,588
Issuances of shares associated with the merger with Pope Resources (in shares)			7,181,071
Issuances of shares associated with the merger with Pope Resources	172,418		$ 172,418
Net income (loss)	29,784			37,612				(7,828)
Net income attributable to noncontrolling interest in the Operating Partnership	(528)			(528)
Dividends	(146,278)			(146,278)
Issuance of shares under the “at-the-market” equity offering, net of commissions and offering costs of $799 (in shares)			1,103,012
Issuance of shares under the “at-the-market” equity offering, net of commissions and offering costs of $799	32,574		$ 32,574
Issuance of shares under incentive stock plans, (in shares)			266,036
Issuance of shares under incentive stock plans	1,589		$ 1,589
Stock-based compensation	8,026		$ 8,026
Repurchase of common shares, (in shares)			(219,619)
Repurchase of common shares	(4,757)		$ (1,605)	(3,152)
Acquisition of noncontrolling interests in consolidated affiliates	333,366							333,366
Adjustment of noncontrolling interest in the Operating Partnership	(24,393)			(24,393)
Conversion of units into common shares (in shares)			17,253
Conversion of units into common shares	496		$ 496
Actuarial change and amortization of pension and postretirement plan liabilities	(925)					(925)
Foreign currency translation adjustment	28,272					22,928		5,344
Cash flow hedges	(61,055)					(62,146)		1,091
Allocation of other comprehensive income to noncontrolling interests in the Operating Partnership	(2,540)					(2,540)
Distributions to noncontrolling interests in consolidated affiliates	(12,643)							(12,643)
Noncontrolling interests in consolidated affiliates redemption of shares	(28,403)							(28,403)
Ending balance (in shares) at Dec. 31, 2020			137,678,822
Ending balance at Dec. 31, 2020	1,862,645		$ 1,101,675	446,267		(73,885)		388,588
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative-effect adjustment due to adoption of ASU No. 2018-02	$ 1,862,645		$ 1,101,675	$ 446,267		$ (73,885)		$ 388,588

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Statement of Stockholders' Equity [Abstract]
Dividends (dollars per share)	$ 1.08	$ 1.08	$ 1.06
Offering issuance costs	$ 799

CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Increase (Decrease) in Partners' Capital [Roll Forward]
Accounting Standards Update [Extensible List]				us-gaap:AccountingStandardsUpdate201802Member
Net income (loss)	$ 29,784	$ 67,678	$ 117,330
Acquisition of noncontrolling interests in consolidated affiliates	333,366
Actuarial change and amortization of pension and postretirement plan liabilities	925	1,350	919
Foreign currency translation adjustment	28,272	963	(22,759)
Cash flow hedges	(61,055)	(30,482)	5,029
Noncontrolling interests in consolidated affiliates redemption of unit equivalents	(28,403)
Rayonier Limited Partnership
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance	1,537,642	1,654,550	1,692,940
Accounting Standards Update [Extensible List]				us-gaap:AccountingStandardsUpdate201802Member
Issuance of units associated with the merger with Pope Resources	172,418
Net income (loss)	29,784	67,678	117,330
Distributions on units	(149,875)	(140,040)	(137,934)
Issuance of shares under the “at-the-market” equity offering, net of commissions and offering costs of $799	32,574
Issuance of units under incentive stock plans	1,589	1,260	8,591
Stock-based compensation	8,026	6,904	6,428
Repurchase of units	(4,757)	(12,680)	(2,984)
Adjustment of Redeemable Operating Partnership Units	(23,864)
Acquisition of noncontrolling interests in consolidated affiliates	333,366
Conversion of units to common shares	496
Actuarial change and amortization of pension and postretirement plan liabilities	(925)	(1,350)	(919)
Foreign currency translation adjustment	28,272	963	(22,759)
Cash flow hedges	(61,055)	(30,482)	5,029
Distributions to noncontrolling interests in consolidated affiliates	(12,643)	(9,161)	(11,172)
Noncontrolling interests in consolidated affiliates redemption of unit equivalents	(28,403)
Ending balance	1,862,645	1,537,642	1,654,550	$ 1,692,940
Rayonier Limited Partnership \| Cumulative Effect, Period of Adoption, Adjustment
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance			0
Ending balance				0
Rayonier Limited Partnership \| Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance	(31,202)	239	13,417
Actuarial change and amortization of pension and postretirement plan liabilities	(925)	(1,350)	(919)
Foreign currency translation adjustment	22,928	784	(17,329)
Cash flow hedges	(62,146)	(30,875)	5,781
Ending balance	(71,345)	(31,202)	239	13,417
Rayonier Limited Partnership \| Accumulated Other Comprehensive Income (Loss) \| Cumulative Effect, Period of Adoption, Adjustment
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance			(711)
Ending balance				(711)
Rayonier Limited Partnership \| Noncontrolling Interests in Consolidated Affiliates
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance	97,661	97,677	99,917
Net income (loss)	(7,828)	8,573	15,114
Acquisition of noncontrolling interests in consolidated affiliates	333,366
Foreign currency translation adjustment	5,344	179	(5,430)
Cash flow hedges	1,091	393	(752)
Distributions to noncontrolling interests in consolidated affiliates	(12,643)	(9,161)	(11,172)
Noncontrolling interests in consolidated affiliates redemption of unit equivalents	(28,403)
Ending balance	388,588	97,661	97,677	99,917
Rayonier Limited Partnership \| General Partners’ Capital \| Units
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance	14,712	15,566	15,796
Issuance of units associated with the merger with Pope Resources	1,724
Net income (loss)	376	591	1,022
Distributions on units	(1,500)	(1,400)	(1,379)
Issuance of shares under the “at-the-market” equity offering, net of commissions and offering costs of $799	326
Issuance of units under incentive stock plans	16	13	86
Stock-based compensation	81	69	64
Repurchase of units	(47)	(127)	(30)
Adjustment of Redeemable Operating Partnership Units	(239)
Conversion of units to common shares	5
Ending balance	15,454	14,712	15,566	15,796
Rayonier Limited Partnership \| General Partners’ Capital \| Units \| Cumulative Effect, Period of Adoption, Adjustment
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance			7
Ending balance				7
Rayonier Limited Partnership \| Limited Partners’ Capital \| Units
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance	1,456,471	1,541,068	1,563,810
Issuance of units associated with the merger with Pope Resources	170,694
Net income (loss)	37,236	58,514	101,194
Distributions on units	(148,375)	(138,640)	(136,555)
Issuance of shares under the “at-the-market” equity offering, net of commissions and offering costs of $799	32,248
Issuance of units under incentive stock plans	1,573	1,247	8,505
Stock-based compensation	7,945	6,835	6,364
Repurchase of units	(4,710)	(12,553)	(2,954)
Adjustment of Redeemable Operating Partnership Units	(23,625)
Conversion of units to common shares	491
Ending balance	$ 1,529,948	$ 1,456,471	1,541,068	1,563,810
Rayonier Limited Partnership \| Limited Partners’ Capital \| Units \| Cumulative Effect, Period of Adoption, Adjustment
Increase (Decrease) in Partners' Capital [Roll Forward]
Beginning balance			$ 704
Ending balance				$ 704

CONSOLIDATED STATEMENTS OF CHANGES IN CAPITAL (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Offering issuance costs	$ 799
Rayonier Limited Partnership
Distributions declared (in dollars per unit)	$ 1.08	$ 1.08	$ 1.06
Offering issuance costs	$ 799

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

OPERATING ACTIVITIES

Net income

$ 29,784

$ 67,678

$ 117,330

Adjustments to reconcile net income to cash provided by operating activities:

Depreciation, depletion and amortization

164,996

128,235

144,121

Non-cash cost of land and improved development

30,368

12,565

23,553

Stock-based incentive compensation expense

8,026

6,904

6,428

Deferred income taxes

7,541

11,314

22,832

Amortization of losses from pension and postretirement plans

869

449

675

Timber write-offs due to casualty events

15,203

Gain on sale of large disposition of timberlands

(28,655)

Other

(11,100)

(4,999)

(2,613)

Changes in operating assets and liabilities, net of effects of merger with Pope Resources:

Receivables

(15,378)

(849)

765

Inventories

(1,448)

1,224

1,773

Accounts payable

5,668

(1,554)

(4,626)

All other operating activities

(1,700)

(6,714)

(142)

CASH PROVIDED BY OPERATING ACTIVITIES

204,174

214,253

310,096

INVESTING ACTIVITIES

Capital expenditures

(66,500)

(63,996)

(62,325)

Real estate development investments

(6,462)

(6,803)

(9,501)

Purchase of timberlands

(24,695)

(142,287)

(57,608)

Net proceeds from large disposition of timberlands

115,666

Cash consideration for merger with Pope Resources, net of cash acquired

(231,068)

Other

(584)

(6,304)

(3,421)

CASH USED FOR INVESTING ACTIVITIES

(213,643)

(219,390)

(132,855)

FINANCING ACTIVITIES

Issuance of debt

320,000

82,000

1,014

Repayment of debt

(152,000)

(54,416)

Dividends paid on common stock

(146,348)

(141,071)

(136,772)

Distributions to noncontrolling interests in the Operating Partnership

(3,596)

Proceeds from the issuance of common shares under incentive stock plan

1,368

1,260

8,591

Proceeds from the issuance of common shares under the “at-the-market” (ATM) equity offering program, net of commissions and offering costs

32,574

Repurchase of common shares to pay withholding taxes on vested incentive stock awards

(1,605)

(4,250)

(2,984)

Repurchase of common shares under repurchase program

(3,152)

(8,430)

Debt issuance cost

(2,483)

(132)

Proceeds from shareholder distribution hedge

135

2,025

Noncontrolling interests in consolidated affiliates redemption of shares

(5,113)

Distributions to noncontrolling interests in consolidated affiliates

(12,643)

(9,161)

(11,172)

CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES

27,002

(79,649)

(193,714)

EFFECT OF EXCHANGE RATE CHANGES ON CASH

(19)

(1,700)

571

CASH, CASH EQUIVALENTS AND RESTRICTED CASH

Change in cash, cash equivalents and restricted cash

17,514

(86,486)

(15,902)

Balance, beginning of year

69,968

156,454

172,356

Balance, end of year

87,482

69,968

156,454

Cash paid during the year:

Interest

^[1]

40,895

32,782

33,120

Income taxes

816

1,691

2,150

Non-cash investing activity:

Capital assets purchased on account

3,205

3,568

2,001

Non-cash financing activity:

Equity consideration for merger with Pope Resources

172,640

Redeemable Common Unit consideration for merger with Pope Resources

106,752

Noncontrolling interests in consolidated affiliates redemption of shares

^[2]

23,290

Rayonier Limited Partnership

OPERATING ACTIVITIES

Net income

29,784

67,678

117,330

Adjustments to reconcile net income to cash provided by operating activities:

Depreciation, depletion and amortization

164,996

128,235

144,121

Non-cash cost of land and improved development

30,368

12,565

23,553

Stock-based incentive compensation expense

8,026

6,904

6,428

Deferred income taxes

7,541

11,314

22,832

Amortization of losses from pension and postretirement plans

869

449

675

Timber write-offs due to casualty events

15,203

Gain on sale of large disposition of timberlands

(28,655)

Other

(11,100)

(4,999)

(2,613)

Changes in operating assets and liabilities, net of effects of merger with Pope Resources:

Receivables

(15,378)

(849)

765

Inventories

(1,448)

1,224

1,773

Accounts payable

5,668

(1,554)

(4,626)

All other operating activities

(1,700)

(6,714)

(142)

CASH PROVIDED BY OPERATING ACTIVITIES

204,174

214,253

310,096

INVESTING ACTIVITIES

Capital expenditures

(66,500)

(63,996)

(62,325)

Real estate development investments

(6,462)

(6,803)

(9,501)

Purchase of timberlands

(24,695)

(142,287)

(57,608)

Net proceeds from large disposition of timberlands

115,666

Cash consideration for merger with Pope Resources, net of cash acquired

(231,068)

Other

(584)

(6,304)

(3,421)

CASH USED FOR INVESTING ACTIVITIES

(213,643)

(219,390)

(132,855)

FINANCING ACTIVITIES

Issuance of debt

320,000

82,000

1,014

Repayment of debt

(152,000)

(54,416)

Distributions on units

(149,944)

(141,071)

(136,772)

Proceeds from the issuance of units under incentive stock plan

1,368

1,260

8,591

Proceeds from the issuance of units under the “at-the-market” (ATM) equity offering program, net of commissions and offering costs

32,574

Repurchase of units to pay withholding taxes on vested incentive stock awards

(1,605)

(4,250)

(2,984)

Repurchase of common shares under repurchase program

(3,152)

(8,430)

Debt issuance cost

(2,483)

(132)

Proceeds from shareholder distribution hedge

135

2,025

Noncontrolling interests in consolidated affiliates redemption of shares

(5,113)

Distributions to noncontrolling interests in consolidated affiliates

(12,643)

(9,161)

(11,172)

CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES

27,002

(79,649)

(193,714)

EFFECT OF EXCHANGE RATE CHANGES ON CASH

(19)

(1,700)

571

CASH, CASH EQUIVALENTS AND RESTRICTED CASH

Change in cash, cash equivalents and restricted cash

17,514

(86,486)

(15,902)

Balance, beginning of year

69,968

156,454

172,356

Balance, end of year

87,482

69,968

156,454

Cash paid during the year:

Interest

^[3]

40,895

32,782

33,120

Income taxes

816

1,691

2,150

Non-cash investing activity:

Capital assets purchased on account

3,205

3,568

2,001

Non-cash financing activity:

Common unit consideration for merger with Pope Resources

172,640

Redeemable Common Unit consideration for merger with Pope Resources

106,752

Noncontrolling interests in consolidated affiliates redemption of shares

^[4]

$ 23,290

$ 0

[1]	Interest paid is presented net of patronage payments received of $4.7 million, $4.0 million and $4.1 million for the years ended December 31, 2020, 2019 and 2018, respectively. For additional information on patronage payments, see Note 8 - Debt.
[2]	Represents a capital distribution made by the New Zealand subsidiary in order to redeem certain equity interests, resulting in the recording of a noncontrolling interest share redemption of $5.1 million and a loan payable by the New Zealand subsidiary in the amount of $23.3 million. See Note 6 - Noncontroll ing Interests and Note 8 - Debt for further information.
[3]	Interest paid is presented net of patronage payments received of $4.7 million, $4.0 million and $4.1 million for the years ended December 31, 2020, 2019 and 2018, respectively. For additional information on patronage payments, see Note 8 — Debt.
[4]	Represents a capital distribution made by the New Zealand subsidiary in order to redeem certain equity interests, resulting in the recording of a noncontrolling interest share redemption of $5.1 million and a loan payable by the New Zealand subsidiary in the amount of $23.3 million. See Note 6 - Noncontrolling Interests and Note 8 - Debt for further information.

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($)
$ in Thousands

12 Months Ended

Dec. 31, 2020

Dec. 31, 2019

Dec. 31, 2018

Patronage refunds received, netted with interest paid

$ 4,700

$ 4,000

$ 4,100

Interest share redemption

5,100

Noncontrolling interests in consolidated affiliates redemption of shares

^[1]

23,290

Rayonier Limited Partnership

Patronage refunds received, netted with interest paid

4,700

4,000

4,100

Interest share redemption

5,100

Noncontrolling interests in consolidated affiliates redemption of shares

^[2]

$ 23,290

$ 0

[1]	Represents a capital distribution made by the New Zealand subsidiary in order to redeem certain equity interests, resulting in the recording of a noncontrolling interest share redemption of $5.1 million and a loan payable by the New Zealand subsidiary in the amount of $23.3 million. See Note 6 - Noncontroll ing Interests and Note 8 - Debt for further information.
[2]	Represents a capital distribution made by the New Zealand subsidiary in order to redeem certain equity interests, resulting in the recording of a noncontrolling interest share redemption of $5.1 million and a loan payable by the New Zealand subsidiary in the amount of $23.3 million. See Note 6 - Noncontrolling Interests and Note 8 - Debt for further information.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION

Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Rayonier Inc.'s Consolidated Financial Statements include the Operating Partnership, wholly-owned subsidiaries and entities in which the Company has a controlling interest. Rayonier, L.P.'s Consolidated Financial Statements include wholly-owned subsidiaries and entities in which the Operating Partnership has a controlling interest. For additional information regarding our consolidated entities with a noncontrolling interest component, see Note 6 - Non controlling Interests for additional information. All intercompany balances and transactions are eliminated.

On May 7, 2020, Rayonier Inc. contributed its 100% ownership interest in Rayonier Operating Company LLC (the “Contribution”) to Rayonier, L.P. As a result of the Contribution, which constituted the transfer of all or substantially all of Rayonier’s assets under the terms of the Indenture, dated March 5, 2012 (as supplemented and amended from time to time, the “Indenture”), between Rayonier, as issuer, the subsidiary guarantors party thereto and The Bank of New York Mellon Trust Company, N.A., as trustee, Rayonier, L.P. expressly assumed all the obligations of Rayonier under the Indenture, including obligations with respect to the outstanding $325 million in aggregate principal amount of 3.750% Senior Notes due 2022 (the “2022 Notes”) issued thereunder.

On May 7, 2020, Rayonier, Rayonier, L.P., the subsidiary guarantors party thereto and the Trustee entered into the Third Supplemental Indenture, pursuant to which (1) Rayonier, L.P. succeeded to and became substituted for the Company under the Indenture and 2022 Notes and expressly assumed all the obligations of the Company under the Indenture, including obligations with respect to the 2022 Notes, and (2) Rayonier agreed to irrevocably, fully and unconditionally guarantee, jointly and severally, the obligations of Rayonier, L.P. under Indenture, including the 2022 Notes.

On May 8, 2020, Rayonier, L.P. acquired Pope Resources and became the general partner of Pope Resources. The acquisition occurred pursuant to a series of mergers (the “Mergers”) provided for in Agreement and Plan of Merger, dated as of January 14, 2020, as amended by Amendment No. 1, dated as of April 1, 2020 (as amended, the “Merger Agreement”), by and among Rayonier Inc., Rayonier, L.P., Rayonier Operating Company LLC, Rayonier Operating Company Holdings, LLC, Pacific GP Merger Sub I, LLC, Pacific GP Merger Sub II, LLC, Pacific LP Merger Sub III, LLC, Pope Resources, Pope EGP, Inc. and Pope MGP, Inc. As of December 31, 2020, the Company owned a 96.9% interest in the Operating Partnership, with the remaining 3.1% 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.

The Contribution was accounted for as a change in reporting entity between entities under common control in accordance with ASC 250-10-45-21. A change in reporting entity requires retrospective application for all periods as if the Contribution had been in effect since inception of common control. As a result, the consolidated financial statements and notes thereto for Rayonier, L.P. in this combined report have been prepared as if the change in reporting entity occurred on January 1, 2018.

The effect of the change in reporting entity on Rayonier, L.P.’s operating income, net income attributable to Rayonier, L.P. and per unit amounts for the twelve months ended December 31, 2020, 2019, and 2018 are presented below (in thousands, except per unit amounts):


	Year Ended December 31,
		2020	2019	2018

Operating income		—	—	—
Net income attributable to Rayonier, L.P. (a)		($14,384)	($14,384)	($14,384)
Basic earnings per unit attributable to Rayonier, L.P.		($0.11)	($0.11)	($0.11)
Diluted earnings per unit attributable to Rayonier, L.P.		($0.11)	($0.11)	($0.11)

(a) The effect of the change in net income attributable to Rayonier, L.P. is due to the interest expense and guarantee fees associated with the 2022 Notes.

MERGER WITH POPE RESOURCES

On May 8, 2020, we completed the acquisition of Pope Resources. Therefore, Pope Resources’ balance sheet and results of operations are included in our consolidated financial statements from and after the date of acquisition. See Note 2 - Merger with Pope Resources, Note 8 - Debt, and Note 21 - Charges for Integration and Restructuring for further information pertaining to the merger.

As a result of the Mergers, we have revised our reportable business segments, adding one additional segment, Timber Funds. Please see Note 7 - Segment and Geographical information for more information about our revised business segments.

RECLASSIFICATIONS

Effective April 1, 2020, we changed the composition of our Rural and Timberland & Non-Strategic Real Estate sales categories to better align with the way management internally evaluates real estate sales. The Rural category now includes all real estate sales (excluding development sales) representing a demonstrable premium above timberland value. The Timberland & Non-Strategic category now includes all real estate sales representing little to no premium to timberland value. This category consists primarily of sales of property that management views as non-strategic to our long-term portfolio as well as sales of property for capital allocation purposes that do not fit the definition of a Large Disposition. All prior period amounts have been reclassified to reflect the new composition of these two sales categories. The Improved Development, Unimproved Development and Large Disposition categories remain unchanged, and this reclassification had no impact on overall segment results. See Note 3 - Revenue.

USE OF ESTIMATES

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and to disclose contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. There are risks inherent in estimating and therefore actual results could differ from those estimates.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of cash on hand and other highly liquid investments with original maturities of three months or less.

ACCOUNTS RECEIVABLE

Accounts receivable are primarily amounts due to us for the sale of timber and are presented net of an allowance for doubtful accounts.

INVENTORY

HBU real estate properties that are expected to be sold within one year are included in inventory at the lower of cost or net realizable value. HBU properties that are expected to be sold after one year are included in a separate balance sheet line entitled “Higher and Better Use Timberlands and Real Estate Development Investments.” See below for additional information.

Inventory also includes logs available to be sold by the Trading segment. Log inventory is recorded at the lower of cost or net realizable value and expensed to cost of sales when sold to third-party buyers. See Note 22 — Inventory for additional information.

PREPAID LOGGING ROADS

Costs for roads built in the Pacific Northwest and New Zealand to access particular tracts to be harvested in the upcoming 24 months to 60 months are recorded as prepaid logging roads. We charge such costs to expense as timber is harvested using an amortization rate determined annually as the total cost of prepaid roads divided by the estimated tons of timber to be accessed by those roads. The prepaid balance is classified as short-term or long-term based on the upcoming harvest schedule. See Note 24 — Other Assets for additional information.

PATRONAGE DIVIDENDS

As a requirement of the Farm Credit Act, borrowers in the Farm Credit System are required to purchase equity in Farm Credit lenders. The equity balance primarily represents shares of Class A common stock in CoBank valued at $100 par value. CoBank equity purchases continue annually until a balance equal to 8% of our 10-year historical average loan balance at CoBank is obtained. Initially, a minimal equity purchase was made in cash upon receiving the loan proceeds. Subsequently, equity purchases are made annually through patronage dividends, of which approximately 75% is cash and 25% is equity. The stock has no cash value until retired. As our loans are paid in full, the stock is generally retired over a 10-year loan base period beginning in the year following loan payoff.

Estimated cash and equity dividends are recognized as an offset to interest expense in the period earned. These estimates are calculated by applying the weighted average debt balance with each participating lender to a historical dividend rate. Changes in assumptions, as well as changes in actual experience, could cause the estimates to change. See Note 8 — Debt and Note 24 — Other Assets for additional information.

DEFERRED FINANCING COSTS

Deferred financing costs related to revolving debt are capitalized and amortized to interest expense over the term of the revolving debt using a method that approximates the effective interest method. See Note 24 — Other Assets for additional information on deferred financing costs related to revolving debt. See Note 8 — Debt for additional information on deferred financing costs related to term debt.

CAPITALIZED SOFTWARE COSTS

Software costs are capitalized and amortized over a period not exceeding five years using the straight-line method.

TIMBER AND TIMBERLANDS

Timber is stated at the lower of cost or net realizable value. Costs relating to acquiring, planting and growing timber including real estate taxes, site preparation and direct support costs relating to facilities, vehicles and supplies, are capitalized. A portion of timberland lease payments are capitalized based on the proportion of acres with merchantable timber volume remaining to be harvested under the lease term and the residual portion of the lease payments are expensed as incurred. Payroll costs are capitalized for time spent on timber growing activities, while interest or any other intangible costs are not capitalized. An annual depletion rate is established for each particular region by dividing merchantable inventory cost by standing merchantable inventory volume, which is estimated annually. We charge accumulated costs attributed to merchantable timber to depletion expense (cost of sales) at the time the timber is harvested or when the underlying timberland is sold.

Upon the acquisition of timberland, we make a determination on whether to combine the newly acquired merchantable timber with an existing depletion pool or to create a new, separate pool. This determination is based on the geographic location of the new timber, the customers/markets that will be served and the species mix. If the acquisition is similar, the cost of the acquired timber is combined into an existing depletion pool and a new depletion rate is calculated for the pool. This determination and depletion rate adjustment normally occurs in the quarter following the acquisition.

HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS

HBU timberland is recorded at the lower of cost or net realizable value. These properties are managed as timberlands until sold or developed, with sales and depletion expense related to the harvesting of timber accounted for within the respective timber segment. At the time of sale, the cost basis of any unharvested timber is recorded as depletion expense, a component of cost of sales, within the Real Estate segment.

HBU timberland and real estate development investments expected to be sold within twelve months are recorded as inventory. See Note 9 — Higher and Better Use Timberlands and Real Estate Development Investments for additional information.

REAL ESTATE DEVELOPMENT INVESTMENTS

Real estate development investments include capitalized costs for targeted infrastructure improvements, such as roadways and utilities. The capitalization period relating to real estate development investments is the period in which activities necessary to ready a property for its intended use are in progress. The period begins when such activities commence, typically when we begin the site work for land already owned, and ends when the improvement is substantially complete and ready for its intended use. Determination of when construction of a project is substantially complete and ready for its intended use is subjective and requires business judgement. As such, we determine when the capitalization period begins and ends through communication with project and other managers responsible for the tracking and oversight of individual projects.

We capitalize costs directly associated with development and construction of identified real estate projects, such as infrastructure, roadways, utilities, amenities and/or other improvements designed to enhance marketability and create parcels, pads and/or lots for sale. We capitalize interest based on the amount of underlying expenditures on real estate projects under development.

IMPAIRMENT OF HBU TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS

We review our higher and better use timberlands and real estate development investments for potential impairment indicators whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.

Impairment indicators for each development project are assessed separately and include, but are not limited to, significant decreases in sales pace or average selling prices, significant increases in expected land development and construction costs, and projected losses on expected future sales. Development projects have extended life cycles that may last 20 to 40 years, or longer, and have few long-term contractual cash flows. Development periods often occur through several economic cycles. Subjective factors such as the expected timing of property development and sales, optimal development density and sales strategy impact the timing and amount of expected future cash flows and fair value.

An impairment loss is recognized if the carrying amount of an asset is not recoverable and exceeds its fair value. The evaluation of anticipated cash flows is highly subjective and is based in part on assumptions regarding future economic conditions, such as construction costs and sales values that could differ materially from actual results in future periods. If impairment indicators exist and it is expected that undiscounted cash flows generated by the asset are less than its carrying amount less costs to sell, an impairment provision is recorded to write-down the carrying amount of the asset to its fair value.

PROPERTY, PLANT, EQUIPMENT AND DEPRECIATION

Property, plant and equipment additions are recorded at cost, including applicable freight, interest, construction and installation costs. We generally depreciate our assets, including office and transportation equipment, using the straight-line depreciation method over 3 to 25 years. Buildings and land improvements are depreciated using the straight-line method over 15 to 35 years and 5 to 30 years, respectively.

Gains and losses on the sale or retirement of assets are included in operating income. Long-lived assets are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets that are held and used is measured by net undiscounted cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is the amount the carrying value exceeds the fair value of the assets, which is based on a discounted cash flow model. Assets to be disposed of are reported at the lower of the carrying amount or fair value less cost to sell.

LEASES

At inception, we determine if an arrangement is a lease and whether that lease meets the classification criteria of a finance or operating lease. Operating leases are included in right-of-use (“ROU”) assets, other current liabilities, and long-term lease liability in the Consolidated Balance Sheets. The income generated from our commercial and residential leases in Port Gamble are accounted for in accordance with Topic 842. We recognize the total minimum lease payments provided for under the leases on a straight-line basis over the lease term.

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. To estimate the incremental borrowing rate, we derive the rate by applying a spread over U.S. Treasury rates with similar durations to our lease payments. Lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term.

RIGHT-OF-USE ASSETS IMPAIRMENT

Operating lease right-of-use assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset group to which the operating lease is assigned may not be recoverable. Recoverability of the asset group is evaluated based on forecasted undiscounted cash flows. If the carrying amount of the asset group is not recoverable, the fair value of the asset group is compared to its carrying amount and an impairment charge is recognized for the amount by which the carrying amount exceeds the fair value. A discounted cash flow approach using market participant assumptions of the expected cash flows and discount rate are used to estimate the fair value of the asset group.

INVESTMENTS

Investments are carried at fair value based on quoted prices in their active market with both the realized and unrealized gains and losses as well as interest and dividends reported in “Interest and other miscellaneous income, net.” Investments at December 31, 2019 consisted of marketable equity securities and none were held at December 31, 2020.

FAIR VALUE MEASUREMENTS

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A three-level hierarchy that prioritizes the inputs used to measure fair value was established 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, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

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. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

ENVIRONMENTAL REMEDIATION LIABILITIES

Environmental remediation liabilities have been evaluated using a combination of methods. The liability is estimated based on amounts included in construction contracts and estimates for construction contingencies, project management, and other professional fees. See Note 13 - Environmental and Natural Resource Damages Liabilities for more information.

GOODWILL

Goodwill represents the excess of the acquisition cost of the New Zealand Timber segment over the fair value of the net assets acquired. Goodwill is not amortized, but is periodically reviewed for impairment. An impairment test for this reporting unit’s goodwill is performed annually and whenever events or circumstances indicate that the value of goodwill may be impaired. We compare the fair value of the New Zealand Timber segment, using an independent valuation for the New Zealand forest assets, to its carrying value including goodwill. The independent valuation of the New Zealand forest assets is based on discounted cash flow models where the fair value is calculated using cash flows from sustainable forest management plans. The fair value of the forest assets is measured as the present value of cash flows from one growth cycle based on the productive forest land, taking into consideration environmental, operational, and market restrictions. These cash flow valuations involve a number of estimates that require broad assumptions and significant judgment regarding future performance. The annual impairment test was performed as of October 1, 2020; the estimated fair value of the New Zealand Timber segment exceeded its carrying value and no impairment was recorded. Except for changes in the New Zealand foreign exchange rate, there have been no adjustments to the carrying value of goodwill since the initial recognition. See Note 24 — Other Assets for additional information.

FOREIGN CURRENCY TRANSLATION AND REMEASUREMENT

The functional currency of our New Zealand-based operations is the New Zealand dollar. All assets and liabilities are translated into U.S. dollars at the exchange rate in effect at the respective balance sheet dates. Translation gains and losses are recorded as a separate component of Accumulated Other Comprehensive Income (“AOCI”), within Shareholders’ Equity.

U.S. denominated transactions of the New Zealand subsidiary are remeasured into New Zealand dollars at the exchange rate in effect on the date of the transaction and recognized in earnings, net of related cash flow hedges. All income statement items of the New Zealand subsidiary are translated into U.S. dollars for reporting purposes using monthly average exchange rates with translation gains and losses being recorded as a separate component of AOCI, within Shareholders’ Equity.

REDEEMABLE OPERATING PARTNERSHIP UNITS

Limited partners holding Redeemable Operating Partnership Units have the right to put any and all of the units to the Operating Partnership in exchange for Rayonier registered common shares, on a one-for-one basis, or cash, at Rayonier’s option. Consequently, these Redeemable Operating Partnership Units are classified outside of permanent partners’ capital in the Operating Partnership's accompanying balance sheets and the related

noncontrolling interest is classified outside of permanent equity in the accompanying balance sheets of Rayonier. The recorded value of the Redeemable Operating Partnership Units is based on the higher of 1) initial carrying amount, increased or decreased for its share of net income or loss, other comprehensive income or loss, and dividend or 2) redemption value as measured by the closing price of Rayonier common stock on the balance sheet date multiplied by the total number of Redeemable Operating Partnership Units outstanding.

RELATED PARTY

We follow ASC 850, Related Party Disclosure, for the identification of related parties and disclosure of related party transactions. A party is considered to be related to us if the party, directly or indirectly or through one or more intermediaries, controls, is controlled by, or is under common control with us. Related parties also include principal owners, management and directors, as well as members of their immediate families or any other parties with which we may deal if one party to a transaction controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests.

Transactions involving related parties cannot be presumed to be carried out on an arm’s-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm’s-length transactions unless such representations can be substantiated. See No te 28 – Related Party.

BUSINESS COMBINATION

We account for business combinations using the acquisition method of accounting, under which all assets acquired and liabilities assumed, including amounts attributable to noncontrolling interest, are recorded at their respective fair values as of the acquisition date. The excess of the purchase price over the fair value of identifiable assets and liabilities is recorded as goodwill. The preliminary allocation of purchase price in a business combination uses significant assumptions and estimates. Critical estimates include, but are not limited to, future expected cash flows, including revenues and expenses, and applicable discount rates. While we believe our estimates and assumptions to be reasonable, they are subject to change as we obtain additional information related to those estimates during the applicable measurement periods (up to one year from the acquisition date).

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, we are required to record preliminary values in the financial statements for the items for which the accounting is incomplete. Adjustments to the preliminary recorded values, which are identified during the measurement period, are recognized in the reporting period in which the adjustments are determined. This includes any effect on earnings of changes in depletion, depreciation or amortization, or other income effects as a result of the change to the recorded values, calculated as if the accounting had been completed at the acquisition date. During the measurement period, we are also required to recognize additional assets or liabilities if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have resulted in the recognition of those assets and liabilities as of that date. The measurement period ends the sooner of one year from the acquisition date or when we receive the information we were seeking about facts and circumstances that existed as of the acquisition date or learn that more information is not obtainable. See Note 2 – Merger with Pope Resources

REVENUE RECOGNITION

We recognize revenues 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”). We generally satisfy performance obligations within a year of entering into a contract and therefore have applied the disclosure exemption found under ASC 606-10-50-14. Unsatisfied performance obligations as of December 31, 2020 are primarily due to advances on stumpage contracts and unearned hunt license revenue. These performance obligations are expected to be satisfied within the next twelve months. We generally collect payment within a year of satisfying performance obligations and therefore have elected not to adjust revenues for a financing component.

TIMBER SALES

Revenue from the sale of timber is recognized when control passes to the buyer. We utilize two primary methods or sales channels for the sale of timber – a stumpage/standing timber model and a delivered log model. The sales method we employ depends upon local market conditions and which method management believes will provide the best overall margins.

Under the stumpage model, standing timber is sold primarily under pay-as-cut contracts, with a specified duration (typically one year or less) and fixed prices, whereby revenue is recognized as timber is severed and the sales volume is determined. We also sell stumpage under lump-sum contracts for specified parcels where we receive cash for the full agreed value of the timber prior to harvest and control passes to the buyer upon signing the contract. We retain interest in the land, slash products and the use of the land for recreational and other purposes. Any uncut timber remaining at the end of the contract period reverts to us. Revenue is recognized for lump-sum timber sales when payment is received, the contract is signed and control passes to the buyer. A third type of stumpage sale we utilize is an agreed-volume sale, whereby revenue is recognized using the output method, as periodic physical observations are made of the percentage of acreage harvested.

Under the delivered log model, we hire third-party loggers and haulers to harvest timber and deliver it to a buyer. Sales of domestic logs generally do not require an initial payment and are made to third-party customers on open credit terms. Sales of export logs generally require a letter of credit from an approved bank. Revenue is recognized when the logs are delivered and control has passed to the buyer. For domestic log sales, control is considered passed to the buyer as the logs are delivered to the customer’s facility. For export log sales (primarily in New Zealand), control is considered passed to the buyer upon delivery onto the export vessel.

The following table summarizes revenue recognition and general payment terms for timber sales:

Contract Type

Performance
Obligation

Timing of
Revenue Recognition

General
Payment Terms

Stumpage Pay-as-Cut

Right to harvest a unit (i.e. ton, MBF, JAS m3) of standing timber

As timber is severed
(point-in-time)

Initial payment between

5% and 20% of estimated contract value; collection generally within 10 days of severance

Stumpage Lump Sum

Right to harvest an agreed upon acreage of standing timber

Contract execution
(point-in-time)

Full payment due upon contract execution

Stumpage Agreed Volume

Right to harvest an agreed upon volume of standing timber

As timber is severed
(over-time)

Payments made throughout contract term at the earlier of a specified harvest percentage or time elapsed

Delivered Wood (Domestic)

Delivery of a unit (i.e. ton, MBF, JAS m3) of timber to customer’s facility

Upon delivery to customer’s facility
(point-in-time)

No initial payment and on open credit terms; collection generally within 30 days of invoice

Delivered Wood (Export)

Delivery of a unit (i.e. ton, MBF, JAS m3) onto export vessel

Upon delivery onto export vessel
(point-in-time)

Letter of credit from an approved bank; collection generally within 30 days of delivery

NON-TIMBER SALES

Non-timber sales are primarily comprised of hunting and recreational licenses, carbon credits and other auxiliary income. Hunting and recreational license sales and any related costs are recognized ratably over the term of the agreement and included in “Sales” and “Cost of sales,” respectively. Payment is generally due upon contract execution. The New Zealand Emissions Trading Scheme (“NZ ETS”) incentivizes the lowering of greenhouse gas emissions by providing carbon credits to certain organizations that lower carbon emission. Our New Zealand segment regularly sells carbon credits and recognizes income as they are sold to other carbon emitting entities.

LOG TRADING

Log trading revenue is generally recognized when procured logs are delivered to the buyer and control has passed. For domestic log trading, control is considered passed to the buyer as the logs are delivered to the customer’s facility. For export log trading, control is considered passed to the buyer upon delivery onto the export vessel. The Trading segment also includes sales from log agency contracts, whereby we act as an agent managing export services on behalf of third parties. Revenue for log agency fees are recognized net of related costs.

REAL ESTATE

We recognize revenue on sales of real estate generally at the point in time when cash has been received, the sale has closed and control has passed to the buyer. A deposit of 5% is generally required at the time a purchase and sale agreement is executed, with the balance due at closing. On sales of development real estate containing future performance obligations, revenue is recognized using the cost input method based on development costs incurred to date relative to the total development costs allocated to the contract with the customer. The aggregate amount of the transaction price allocated to unsatisfied obligations is recorded and presented in “Deferred revenue” in the Consolidated Balance Sheets.

COST OF SALES

Cost of sales associated with timber operations primarily include the cost basis of timber sold (depletion) and logging and transportation costs (cut and haul). Depletion includes the amortization of capitalized costs (site preparation, planting and fertilization, real estate taxes, timberland lease payments and certain payroll costs). Other costs include amortization of capitalized costs related to road and bridge construction and software, depreciation of fixed assets and equipment, road maintenance, severance and excise taxes and fire prevention.

Cost of sales associated with real estate sold includes the cost of the land, the cost of any timber on the property that was conveyed to the buyer, any real estate development costs and any closing costs including sales commissions that may be borne by us. We expense closing costs, including sales commissions, when incurred for all real estate sales with future performance obligations expected to be satisfied within one year.

When developed residential or commercial land is sold, the cost of sales includes actual costs incurred and estimates of future development costs benefiting the property sold through completion. Costs are allocated to each sold acre or lot based upon the relative sales value of each acre or lot as compared to the estimated sales value of the total project. For purposes of allocating development costs, estimates are reevaluated at least annually and more frequently if warranted by market conditions, changes in the project’s scope or other factors, with any adjustments being allocated prospectively to the remaining units available for sale.

EMPLOYEE BENEFIT PLANS

The determination of expense and funding requirements for our defined benefit pension plan, its unfunded excess pension plan and its postretirement life insurance plan are largely based on a number of actuarial assumptions. The key assumptions include discount rate, return on assets, mortality rates and longevity of employees. See Note 18 — Employee Benefit Plans for assumptions used to determine benefit obligations, and the net periodic benefit cost for the year ended December 31, 2020.

Periodic pension and other postretirement expense is included in “Cost of sales,” “Selling and general expenses” and “Interest and other miscellaneous income, net” in the Consolidated Statements of Income and Comprehensive Income. The service cost component of net periodic benefit cost is included in “Cost of sales” and “Selling and general expenses” while the other components of net periodic benefit cost (interest cost, expected return on plan assets and amortization of losses or gains) are presented outside of income from operations in “Interest and other miscellaneous income, net.” At December 31, 2020 and 2019, our pension plans were in a net liability position (underfunded) of $21.6 million and $23.8 million, respectively. The estimated amount to be paid in the next 12 months is recorded in “Accrued payroll and benefits” on the Consolidated Balance Sheets, with the remainder recorded as a long-term liability in “Pension and Other Postretirement Benefits.” Changes in the funded status of our plans are recorded through other comprehensive (loss) income in the year in which the changes occur. We measure plan assets and benefit obligations as of the fiscal year-end. See Note 18 — Employee Benefit Plans for additional information.

INCOME TAXES

We use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases, operating loss carryforwards and tax credit carryforwards. Deferred tax assets and liabilities are measured pursuant to tax laws using rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. We recognize the effect of a change in income tax rates on deferred tax assets and liabilities in the Consolidated Statements of Income and Comprehensive Income in the period that includes the enactment date of the rate change. We record a valuation allowance to reduce the carrying amounts of deferred tax assets if it is more-likely-than-not that such deferred tax assets will not be realized.

In determining the provision for income taxes, we compute an annual effective income tax rate based on annual income by legal entity, permanent differences between book and tax, and statutory income tax rates by jurisdiction. Inherent in the effective tax rate is an assessment of the ultimate outcome of current period uncertain tax positions. We adjust our annual effective tax rate as additional information on outcomes or events becomes available. Discrete items such as taxing authority examination findings or legislative changes are recognized in the period in which they occur.

Our income tax returns are subject to audit by U.S. federal, state and foreign taxing authorities. In evaluating the tax benefits associated with various tax filing positions, we record a tax benefit for an uncertain tax position if it is more-likely-than-not to be realized upon ultimate settlement of the issue. We record a liability for an uncertain tax position that does not meet this criterion. We adjust our liabilities for uncertain tax benefits in the period in which it is determined the issue is settled with the taxing authorities, the statute of limitations expires for the relevant taxing authority to examine the tax position or when new facts or information become available. See Note 11 — Income Taxes for additional information.

RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS

We adopted Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments-Credit Losses (Topic 326) on January 1, 2020, with no material impact on the consolidated financial statements.

On March 2, 2020, the SEC adopted amendments to the financial disclosure requirements for guarantors and issuers of guaranteed securities, as well for affiliates whose securities collateralize a registrant’s securities. The amendments revise Rules 3-10 and 3-16 of Regulation S-X, and relocate part of Rule 3-10 and all of Rule 3-16 to the new Article 13 in Regulation S-X, which is comprised of new Rules 13-01 and 13-02. We early adopted the requirements of the amendments on April 1, 2020, which included replacing guarantor condensed consolidating financial information with summarized financial information for the consolidated obligor group (Parent, Issuer, and Guarantor Subsidiaries) as well as no longer requiring guarantor cash flow information, financial information for non-guarantor subsidiaries, and a reconciliation to the consolidated results.

We adopted Accounting Standards Update (“ASU”) No 2018-14, Compensation - Retirement Benefits - Defined Benefits Plans - General (Subtopic 715-20) on October 1, 2020, with no material impact on the consolidated financial statements.

We adopted Accounting Standards Update (“ASU”) No 2019-12, Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes on October 1, 2020, with no material impact on the consolidated financial statements.

NEW ACCOUNTING PRONOUNCEMENTS

In March 2020, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2020-04, Reference Rate Reform (Topic 848), which provides optional guidance to ease the potential burden in accounting due to reference rate reform. The guidance in this update provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference LIBOR or another reference rate expected to be discontinued due to reference rate reform. These amendments are effective immediately and may be applied prospectively to contract modifications made and hedging relationships entered into on or before December 31, 2022. We are currently evaluating our contracts and the optional expedients provided by the new standard.

SUBSEQUENT EVENTSWe have evaluated events occurring from December 31, 2020 to the date of issuance of these Consolidated Financial Statements for potential recognition or disclosure in the consolidated financial statements. No events were identified that warranted recognition or disclosure.

MERGER WITH POPE RESOURCES

12 Months Ended

Dec. 31, 2020

Business Combinations [Abstract]

MERGER WITH POPE RESOURCES

On May 8, 2020, Rayonier Inc. and Rayonier, L.P. acquired Pope Resources in connection with the Mergers. Pope Resources was a master limited partnership that primarily owned and managed timberlands in the U.S. Pacific Northwest. Pope Resources also managed and co-invested in three private equity timber funds and developed and sold real estate properties. The merger added approximately 124,000 acres of high-quality, predominantly Douglas-fir timberlands to our Pacific Northwest timberland portfolio as well as a private equity timber fund business with three funds comprising approximately 141,000 acres. Additionally, we believe the Mergers augmented our higher-and-better-use real estate pipeline with rural and conservation land sale opportunities and high-potential improved development projects in the West Puget Sound area.

Under the merger agreement, each outstanding unit representing limited partnership interests of Pope Resources was, at the option of its holder, exchanged for either:

• 3.929 shares of Rayonier Inc. common stock

• 3.929 units representing limited partnership interests of Rayonier, L.P.

• $125.00 in cash

Holders of Pope Resources units who did not make a valid election received shares of Rayonier common stock. The elections were subject to proration to ensure that the aggregate amount of Rayonier shares and Rayonier, L.P. units, on the one hand, and cash, on the other hand, issued in the merger equaled the amounts issued as if every Pope Resources unit converted into merger consideration received 2.751 shares of Rayonier common stock or Rayonier, L.P. units and $37.50 in cash.

Upon consummation of the merger, all outstanding Pope Resources restricted units were converted into equivalent equity awards with respect to Rayonier common shares. Pope Resources directors and some executive employees of Pope Resources held restricted Pope Resources units that were subject to accelerated vesting in connection with the merger. Since a portion of these Pope Resources units relate to services rendered to Pope Resources prior to the merger, a portion of the replacement Rayonier restricted stock awards’ fair value is included in the consideration transferred. See additional details about the replacement restricted stock awards in Note 19 — Incentive Stock Plans.

The following table summarizes the total consideration transferred by Rayonier in the merger (dollars in thousands, except per share and per unit data):



Cash consideration:
Pope Resources units outstanding as of May 8, 2020	4,366,636
Less: Pope Resources units held by us	(114,400)
Units outstanding, net	4,252,236
Cash consideration (per Pope Resources unit)	$37.50
Cash consideration for elections		$159,463
General partner interest		10,000
Repayment of Pope Resources debt		65,943
Prepayment penalty and accrued interest on Pope Resources’ debt		2,275
Closing costs paid on behalf of Pope Resources		9,637
Cash consideration transferred		$247,318

Equity consideration:






Rayonier common shares issued	7,181,071
Rayonier share price (a)	$24.01
Equity consideration for elections		$172,418
Pope Resources replacement awards (b)(c)		222
Equity consideration transferred		$172,640

Redeemable Operating Partnership Unit consideration:
Redeemable Operating Partnership Units issued	4,446,153
Rayonier share price (a)	$24.01
Redeemable Operating Partnership Unit consideration transferred		$106,752






Fair value of Pope Resources units held by us (d)		$11,211

Total consideration		$537,921

(a)The closing price of Rayonier common stock on the NYSE on May 7, 2020.

(b)See Note 19 — Incentive Stock Plans for additional details.

(c)Represents the fair value of Rayonier replacement restricted stock awards for restricted Pope Resources units held by employees that relate to pre-merger services rendered to Pope Resources.

(d)Based on the closing price of Pope Resources units on the NASDAQ on May 7, 2020.

The following table contains the amounts of cash transferred in the merger and net cash consideration shown in the Consolidated Statements of Cash Flows for the year ended December 31, 2020:


			December 31, 2020

Cash consideration transferred			$247,318
Less: Cash assumed in merger			(16,250)
Net cash consideration shown in the Consolidated Statements of Cash Flows			$231,068

We recognized approximately $17.2 million of merger-related costs that were expensed during the year ended December 31, 2020. See Note 21 — Charges for Integration and Restructuring for descriptions of the components of merger-related costs.

The acquisition of Pope Resources has been accounted for as a business combination under ASC 805, Business Combinations, (“ASC 805”). Under ASC 805, assets acquired and liabilities assumed in a business combination must be recorded at their fair value as of the acquisition date. Recorded fair valuation of assets acquired and liabilities assumed related to the acquisition of Pope Resources is preliminary and will be completed as soon as practicable, but no later than one year after the consummation of the transaction. Pursuant to ASC 805, the financial statements will not be retrospectively adjusted for any changes to the recorded values that occur in subsequent periods. Rather, we will recognize any changes to the recorded values during the reporting period in which the adjustments are determined. We will also be required to record, in the same period's financial statements, the effect on earnings of changes in depletion, depreciation, amortization, or other income effects, if any, as a result of changes to recorded values, calculated as if the accounting had been completed at the acquisition date.

Our consolidated financial statements as of and for the year ended December 31, 2020, include results of operations for Pope Resources from May 8, 2020 through December 31, 2020.

As a result of refinements to timberlands and property, plant and equipment preliminary recorded values, we recognized the following changes in depletion and depreciation in the fourth quarter of 2020:


	Three months ended December 31, 2020
	Pacific Northwest Timber	Real Estate	Timber Funds	Corporate	Total
Depletion	$2,412	—	($1,000)	—	$1,412
Depreciation	—	506	—	41	547
Total	$2,412	$506	($1,000)	$41	$1,959

The preliminary estimate of fair value required the use of significant assumptions and estimates. Critical estimates included, but were not limited to, future expected cash flows, including projected revenues and expenses, and the applicable discount rates. These estimates were based on assumptions that we believe to be reasonable; however, actual results may differ from these estimates. The assessment of fair value is preliminary and is based on information that was available to management at the time the consolidated financial statements were prepared. Those estimates and assumptions are subject to change as we obtain additional information related to those estimates during the applicable measurement periods (up to one year from the acquisition date). The most significant open items necessary to complete are related to timberlands, real property, higher and better use timberlands and real estate development investments, environmental liabilities and tax related matters.

The preliminary fair value estimates were generally based on significant inputs that are not observable in the market and thus represent Level 3 measurements as defined in ASC 820, Fair Value Measurement, (“ASC 820”) with the exception of certain long-term debt instruments assumed in the merger that can be valued using observable market inputs and are therefore Level 2 measurements. See Note 17 — Fair Value Measurements for further information on the fair value hierarchy.

The following summarizes the fair value methodology utilized in our preliminary fair value estimates for significant assets and liabilities:

Income Approach — Estimates fair value for an asset based on the present value of cash flow projected to be generated by the asset. Projected cash flows are discounted at rates of return that reflect the relative risk of achieving the cash flows and the time value of money. This approach was primarily used to value acquired timberlands in our Pacific Northwest segment.

Cost Approach — Estimates value by determining the current cost of replacing an asset with another of equivalent economic utility. This approach was primarily used for property and equipment and timberlands in our Timber Funds segment.

Market Approach — Estimates fair value for an asset based on values of recent comparable transactions. This approach was primarily used to value higher and better use timberlands and real estate developments investments, certain land and building assets and long-term debt instruments.

The preliminary allocation of purchase price to the identifiable assets acquired and liabilities assumed was based on preliminary estimates of fair value as of May 8, 2020, and is as follows (in thousands):


	Core Timberlands	Timber Funds	Total
Timberland and Real Estate Business
Cash	$7,380	$8,870	$16,250
Accounts receivable	2,459	1,788	4,247
Other current assets	703	260	963
Timber and Timberlands	514,103	432,500	946,603
Higher and Better Use Timberlands and Real Estate Development Investments	26,510	—	26,510
Property, plant and equipment	11,616	—	11,616
Other assets	4,403	—	4,403
Total identifiable assets acquired	$567,174	$443,418	$1,010,592

Accounts payable	274	293	567
Current maturities of long-term debt	—	25,084	25,084
Accrued interest	244	275	519
Other current liabilities	9,038	2,080	11,118
Long-term debt	53,502	35,759	89,261
Long-term environmental and natural resource damage liabilities	10,748	—	10,748
Other non-current liabilities (a)	2,009	—	2,009
Total liabilities assumed	$75,815	$63,491	$139,306

Net identifiable assets	$491,359	$379,927	$871,286
Less: noncontrolling interest	(3,379)	(329,986)	(333,365)
Total net assets acquired	$487,980	$49,941	$537,921

(a)Other non-current liabilities includes a $2.0 million deferred income tax liability resulting from the preliminary fair value adjustment to Pope Resources’ assets and liabilities.

These estimated fair values are preliminary in nature and subject to adjustments, which could be material. We have not identified any material unrecorded pre-merger contingencies where the related asset, liability or impairment is probable and the amount can be reasonably estimated. Our valuations will be finalized when certain information arranged to be obtained has been received and our review of that information has been completed. Prior to the finalization of the purchase price allocation, if information becomes available that would indicate it is probable that such events had occurred and the amounts can be reasonably estimated, such items will be included in the final purchase price allocation.

In September 2020, fires in Oregon burned approximately 6,700 acres of land owned by ORM Timber Fund II, which we manage and in which we hold a 20% ownership interest, and approximately 400 acres of land owned by ORM Timber Fund IV, which we manage and in which we hold a 15% ownership interest. As a result, we wrote off $8.8 million and $0.4 million of non-salvageable timber basis in Timber Fund II and Timber Fund IV, of which $1.8 million and $0.1 million was attributable to Rayonier, respectively. The amounts of these write-offs are based on preliminary fair value estimates of the underlying basis in the respective Funds’ timberlands and are subject to adjustments, which could be material. As a result of refinements to the preliminary purchase allocation, value of timber write-offs from the Oregon fires increased by an inconsequential amount. Once the purchase price allocation is finalized, the amounts of the write-offs may change.

The amount of revenue of Pope Resources included in our Consolidated Statements of Income and Comprehensive Income from the date of the merger to December 31, 2020 is approximately $50.8 million. The net income effect resulting from the merger with Pope Resources for the year ended December 31, 2020 is impracticable to determine, as we immediately integrated Pope Resources into our ongoing operations.

Pursuant to ASC 805, unaudited supplemental pro forma results of operations for the years ended December 31, 2020 and 2019, assuming the acquisition had occurred as of January 1, 2019, are presented below (in thousands, except per share and unit amounts):


	2020	2019
Sales	$890,400	$821,500

Net income (loss) attributable to Rayonier Inc.	$36,819	$26,927
Basic earnings (loss) per share attributable to Rayonier Inc.	$0.27	$0.20
Diluted earnings (loss) per share attributable to Rayonier Inc.	$0.27	$0.20

Net income (loss) attributable to Rayonier, L.P.	$38,032	$27,804
Basic earnings (loss) per unit attributable to Rayonier, L.P.	$0.27	$0.20
Diluted earnings (loss) per unit attributable to Rayonier, L.P.	$0.27	$0.20

The unaudited pro forma results include certain pro forma adjustments to net earnings that were directly attributable to the acquisition, assuming the acquisition had occurred on January 1, 2019, including the following:

•additional depletion expense that would have been recognized relating to the basis increase in the acquired Timber and Timberlands;

•adjustment to interest expense to reflect the removal of Pope Resources debt and the additional borrowings we incurred in conjunction with the acquisition; and

•a reduction in expenses for year ended December 31, 2020 of $32.4 million for acquisition-related transaction costs.

Pro forma data may not be indicative of the results that would have been obtained had these events occurred at the beginning of the periods presented, nor is it intended to be a projection of future results.

REVENUE

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

REVENUE

RECLASSIFICATIONS

NEW REAL ESTATE SALES CATEGORY

Effective September 2020, we added a new Real Estate sales category, “Conservation Easement,” in which we sell the development rights on a property but withhold the rights to grow and harvest timber.

Contract Balances

The timing of revenue recognition, invoicing and cash collections results in accounts receivable and deferred revenue (contract liabilities) on the Consolidated Balance Sheets. Accounts receivable 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 summarizes revenue recognized during the years ended December 31, 2020 and 2019 that was included in the contract liability balance at the beginning of each year:


	Year Ended December 31,
	2020	2019
Revenue recognized from contract liability balance at the beginning of the year (a)	$10,857	$10,039

(a) Revenue recognized was primarily from hunting licenses and the use of advances on pay-as-cut timber sales.

The following tables present our revenue from contracts with customers disaggregated by product type for the years ended December 31, 2020, 2019 and 2018:


Year Ended	Southern Timber	Pacific Northwest Timber	New Zealand Timber	Timber Funds	Real Estate	Trading	Elim.	Total
December 31, 2020
Pulpwood	$94,108	$10,581	$27,558	$784	—	$10,260	—	$143,291
Sawtimber	73,683	106,051	166,935	25,195	—	77,314	—	449,178
Hardwood	2,430	—	—	—	—	—	—	2,430
Total Timber Sales	170,221	116,632	194,493	25,979	—	87,574	—	594,899
License Revenue, Primarily From Hunting	17,765	843	307	17	—	—	—	18,932
Other Non-Timber/Carbon Revenue	3,845	3,334	7,515	124	—	—	—	14,818
Agency Fee Income	—	—	—	—	—	1,160	—	1,160
Total Non-Timber Sales	21,610	4,177	7,822	141	—	1,160	—	34,910
Improved Development	—	—	—	—	14,498	—	—	14,498
Unimproved Development	—	—	—	—	8,426	—	—	8,426
Rural	—	—	—	—	67,152	—	—	67,152
Timberland & Non-Strategic	—	—	—	—	19,255	—	—	19,255
Conservation Easement	—	—	—	—	3,099	—	—	3,099
Deferred Revenue/Other (b)	—	—	—	—	283	—	—	283
Large Dispositions	—	—	—	—	116,027	—	—	116,027
Total Real Estate Sales	—	—	—	—	228,740	—	—	228,740
Revenue from Contracts with Customers	191,831	120,809	202,315	26,120	228,740	88,734	—	858,549
Lease Revenue	—	—	—	—	605	—	—	605
Intersegment	—	—	—	3,437	—	239	(3,676)	—
Total Revenue	$191,831	$120,809	$202,315	$29,557	$229,345	$88,973	($3,676)	$859,154
December 31, 2019
Pulpwood	$86,537	$10,350	$32,925	—	—	$13,351	—	$143,163
Sawtimber	67,360	72,377	198,481	—	—	101,255	—	439,473
Hardwood	5,259	—	—	—	—	—	—	5,259
Total Timber Sales	159,156	82,727	231,406	—	—	114,606	—	587,895
License Revenue, Primarily from Hunting	18,270	717	361	—	—	—	—	19,348
Other Non-Timber/Carbon Revenue	16,685	1,970	10,094	—	—	—	—	28,749
Agency Fee Income	—	—	—	—	—	677	—	677
Total Non-Timber Sales	34,955	2,687	10,455	—	—	677	—	48,774
Improved Development	—	—	—	—	5,882	—	—	5,882
Unimproved Development	—	—	—	—	19,476	—	—	19,476
Rural (a)	—	—	—	—	47,647	—	—	47,647
Timberland & Non-Strategic (a)	—	—	—	—	1,338	—	—	1,338

Deferred Revenue/Other (b)	—	—	—	—	544	—	—	544
Total Real Estate Sales	—	—	—	—	74,887	—	—	74,887
Revenue from Contracts with Customers	194,111	85,414	241,861	—	74,887	115,283	—	711,556
Intersegment	—	—	—	—	—	155	(155)	—
Total Revenue	$194,111	$85,414	$241,861	—	$74,887	$115,438	($155)	$711,556

December 31, 2018
Pulpwood	$80,134	$14,305	$28,737	—	—	$13,771	—	$136,947
Sawtimber	60,295	92,166	213,206	—	—	134,299	—	499,966
Hardwood	3,433	—	—	—	—	—	—	3,433
Total Timber Sales	143,863	106,471	241,943	—	—	148,070	—	640,347
License Revenue, Primarily from Hunting	16,285	709	401	—	—	—	—	17,395
Other Non-Timber/Carbon Revenue	9,847	2,652	6,670	—	—	—	—	19,169
Agency Fee Income	—	—	—	—	—	652	—	652
Total Non-Timber Sales	26,132	3,361	7,071	—	—	652	—	37,216
Improved Development	—	—	—	—	8,336	—	—	8,336
Unimproved Development	—	—	—	—	8,621	—	—	8,621
Rural (a)	—	—	—	—	46,280	—	—	46,280
Timberland & Non-Strategic (a)	—	—	—	—	75,281	—	—	75,281

Deferred Revenue/Other (b)	—	—	—	—	57	—	—	57
Total Real Estate Sales	—	—	—	—	138,575	—	—	138,575
Revenue from Contracts with Customers	169,995	109,832	249,014	—	138,575	148,722	—	816,138
Intersegment	—	—	—	—	—	92	(92)	—
Total Revenue	$169,995	$109,832	$249,014	—	$138,575	$148,814	($92)	$816,138

(a) The years ended December 31, 2019 and 2018 reflect the reclassification of certain real estate sales between the Rural and Timberland & Non-Strategic sales categories to better align with the way management internally evaluates real estate sales.

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

The following tables present our timber sales disaggregated by contract type for the years ended December 31, 2020, 2019 and 2018:


Year Ended	Southern Timber	Pacific Northwest Timber	New Zealand Timber	Timber Funds	Trading	Total
December 31, 2020
Stumpage Pay-as-Cut	$68,684	—	—	$1,731	—	$70,415
Stumpage Lump Sum	2,027	8,142	—	—	—	10,169

Total Stumpage	70,711	8,142	—	1,731	—	80,584

Delivered Wood (Domestic)	85,996	108,490	62,568	24,248	1,768	283,070
Delivered Wood (Export)	13,514	—	131,925	—	85,806	231,245
Total Delivered	99,510	108,490	194,493	24,248	87,574	514,315

Total Timber Sales	$170,221	$116,632	$194,493	$25,979	$87,574	$594,899

December 31, 2019
Stumpage Pay-as-Cut	$71,943	—	—	—	—	$71,943
Stumpage Lump Sum	7,428	2,749	—	—	—	10,177

Total Stumpage	79,371	2,749	—	—	—	82,120

Delivered Wood (Domestic)	71,054	79,978	80,974	—	5,488	237,494
Delivered Wood (Export)	8,731	—	150,432	—	109,118	268,281
Total Delivered	79,785	79,978	231,406	—	114,606	505,775

Total Timber Sales	$159,156	$82,727	$231,406	—	$114,606	$587,895

December 31, 2018
Stumpage Pay-as-Cut	$72,385	—	—	—	—	$72,385
Stumpage Lump Sum	4,988	11,854	—	—	—	16,842

Total Stumpage	77,373	11,854	—	—	—	89,227

Delivered Wood (Domestic)	60,931	94,617	90,631	—	6,141	252,320
Delivered Wood (Export)	5,559	—	151,312	—	141,929	298,800
Total Delivered	66,490	94,617	241,943	—	148,070	551,120

Total Timber Sales	$143,863	$106,471	$241,943	—	$148,070	$640,347

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

+ Details

TIMBERLAND ACQUISITIONS

12 Months Ended

Dec. 31, 2020

Property, Plant and Equipment [Abstract]

TIMBERLAND ACQUISITIONS

In 2020, we acquired approximately 13,000 acres of U.S. timberland located in Alabama, Georgia, and Louisiana through three transactions for an aggregate value of $24.2 million. Approximately $24.1 million of these acquisitions were acquired using like-kind exchange proceeds while the remaining $0.1 million were funded from operating cash flow. Additionally, during 2020, we acquired approximately 2,000 acres of timberland (including approximately 2,000 acres of leased land) in New Zealand for approximately $0.5 million. These acquisitions were funded from operating cash flow.

In 2019, we acquired approximately 62,000 acres of U.S. timberland located in Florida, Georgia, Texas, and Washington through sixteen transactions for an aggregate value of $106.3 million. Approximately $29.8 million of these acquisitions were acquired using like-kind exchange proceeds while the remaining $76.5 million were funded from operating cash flow and the use of our revolving credit facility. Additionally, during 2019, we acquired approximately 9,000 acres of timberland (including approximately 2,000 acres of leased land) in New Zealand for approximately $36.0 million. These acquisitions were funded from operating cash flow.

See Note 8 - Debt for additional information on our revolving credit facility and the New Zealand subsidiary’s working capital facility.

The following table summarizes the timberland acquisitions for the years ended December 31, 2020 and 2019:


	2020		2019
	Cost	Acres (a)	Cost	Acres
Alabama	$100	56	—	—
Florida	—	—	71,183	42,522
Georgia	18	20	13,395	10,271


Louisiana	24,123	12,558	—	—
Texas	—	—	14,349	6,643
Washington	—	—	7,340	2,260
New Zealand	454	2,378	36,020	9,223
Total Acquisitions	$24,695	15,012	$142,287	70,919

(a)Excludes acres and costs related to Pope Resources, for more information on assets and liabilities acquired see Note 2 - Merger with Pope Resources.

LEASES

12 Months Ended

Dec. 31, 2020

Leases [Abstract]

LEASES

TIMBERLAND LEASES

U.S. timberland leases typically have initial terms of approximately 30 to 65 years, with renewal provisions in some cases. New Zealand timberland lease terms typically range between 30 and 99 years. New Zealand lease arrangements generally consist of Crown Forest Licenses (“CFLs”), forestry rights and land leases. A CFL is a license arrangement to use government or privately owned lands to operate a commercial forest. CFLs generally extend indefinitely and may only be terminated upon a 35-year termination notice. If no termination notice is given, the CFLs renew automatically each year for a one-year term. Alternatively, some CFLs extend for a specific term. Once a CFL is terminated, we may be able to obtain a forestry right from the subsequent owner. A forestry right is a license arrangement with a private entity to use their lands to operate a commercial forest. Forestry rights terminate either upon the issuance of a termination notice (which can last 35 to 45 years), completion of harvest, or a specified termination date.

As of December 31, 2020, the New Zealand subsidiary has two CFLs comprising 9,000 gross acres or 8,000 net plantable acres under termination notice that are being relinquished as harvest activities are concluded, as well as two fixed-term CFLs comprising 3,000 gross acres or 2,000 net plantable acres expiring in 2062. Additionally, the New Zealand subsidiary has two forestry rights comprising 32,000 gross acres or 8,000 net plantable acres under termination notice that are being relinquished as harvest activities are concluded.

OTHER NON-TIMBERLAND LEASES

In addition to timberland holdings, we lease properties for certain office locations. Significant leased properties include a regional office in Lufkin, Texas; a Pacific Northwest Timber office in Hoquiam, Washington and a New Zealand Timber and Trading headquarters in Auckland, New Zealand.

LEASE MATURITIES, LEASE COST AND OTHER LEASE INFORMATION

The following table details our undiscounted lease obligations as of December 31, 2020 by type of lease and year of expiration:


	Year of Expiration
Lease obligations	Total	2021	2022	2023	2024	2025	Thereafter
Operating lease liabilities	$196,279	$9,813	$8,842	$8,745	$8,681	$7,872	$152,326
Total Undiscounted Cash Flows	$196,279	$9,813	$8,842	$8,745	$8,681	$7,872	$152,326
Imputed interest	(87,257)
Balance at December 31, 2020	$109,022
Less: Current portion	(8,771)
Non-current portion at December 31, 2020	$100,251

The following table details components of our lease cost for the years ended December 31, 2020 and 2019:


	Year Ended December 31,
Lease Cost Components	2020	2019
Operating lease cost	$9,647	$10,870
Variable lease cost (a)	230	235
Total lease cost (b)	$9,877	$11,105

(a) The majority of timberland leases are subject to increases or decreases based on either the Consumer Price Index, Producer Price Index or market rates.

(b) Short-term leases with an initial term of 12 months or less are not recorded on the balance sheet. Lease expense for these leases are expensed on a straight line basis over the lease term. Short-term lease expense was not material for the year ended December 31, 2020.

The following table details components of our lease cost for the years ended December 31, 2020 and 2019:


	Year Ended December 31,
Supplemental Cash Flow Information Related to Leases:	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$2,127		$2,567
Investing cash flows from operating leases	7,520		8,303
Total cash flows from operating leases	$9,647		$10,870

Weighted-average remaining lease term in years - operating leases	29		28
Weighted-average discount rate - operating leases	5	%	5	%

Lessor Lease Information

In the Mergers, we acquired income generating commercial and residential leases primarily concentrated in Port Gamble, Washington. Commercial and residential leases have non-lease components of taxes, insurance, and common area maintenance that we have elected not to separate under the ASC 842 practical expedient. Each of these are classified as operating leases. Buildings subject to operating leases had a preliminary cost of $3.5 million and accumulated depreciation of $0.2 million at December 31, 2020.

The following table details our lease income for the years ended December 31, 2020 and 2019:


	Year Ended December 31,
Lease Income Components	2020	2019
Operating lease income	$605	—

Total lease income	$605	—

Future lease income as of December 31, 2020, based on payments due by period under the lease contracts, are presented in the following table:


		Year of Expiration
Lease assets	Total	2021	2022	2023	2024	2025	Thereafter
Operating lease Income	$574	$247	$150	$120	$57	—	—

We apply the following practical expedients as allowed under ASC 842:


Practical Expedient						Description
Short-term leases						We do not record right-of-use assets or liabilities for short-term leases (a lease that at commencement date has a lease term of 12 months or less and does not contain a purchase option that is reasonably certain to be exercised).
Separation of lease and non-lease components						We do not separate non-lease components from the associated lease components if they have the same timing and pattern of transfer and, if accounted for separately, would both be classified as an operating lease.

LEASES

TIMBERLAND LEASES

OTHER NON-TIMBERLAND LEASES

LEASE MATURITIES, LEASE COST AND OTHER LEASE INFORMATION

The following table details our undiscounted lease obligations as of December 31, 2020 by type of lease and year of expiration:


	Year of Expiration
Lease obligations	Total	2021	2022	2023	2024	2025	Thereafter
Operating lease liabilities	$196,279	$9,813	$8,842	$8,745	$8,681	$7,872	$152,326
Total Undiscounted Cash Flows	$196,279	$9,813	$8,842	$8,745	$8,681	$7,872	$152,326
Imputed interest	(87,257)
Balance at December 31, 2020	$109,022
Less: Current portion	(8,771)
Non-current portion at December 31, 2020	$100,251

The following table details components of our lease cost for the years ended December 31, 2020 and 2019:


	Year Ended December 31,
Lease Cost Components	2020	2019
Operating lease cost	$9,647	$10,870
Variable lease cost (a)	230	235
Total lease cost (b)	$9,877	$11,105

(a) The majority of timberland leases are subject to increases or decreases based on either the Consumer Price Index, Producer Price Index or market rates.

The following table details components of our lease cost for the years ended December 31, 2020 and 2019:


	Year Ended December 31,
Supplemental Cash Flow Information Related to Leases:	2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$2,127		$2,567
Investing cash flows from operating leases	7,520		8,303
Total cash flows from operating leases	$9,647		$10,870

Weighted-average remaining lease term in years - operating leases	29		28
Weighted-average discount rate - operating leases	5	%	5	%

Lessor Lease Information

The following table details our lease income for the years ended December 31, 2020 and 2019:


	Year Ended December 31,
Lease Income Components	2020	2019
Operating lease income	$605	—

Total lease income	$605	—

Future lease income as of December 31, 2020, based on payments due by period under the lease contracts, are presented in the following table:


		Year of Expiration
Lease assets	Total	2021	2022	2023	2024	2025	Thereafter
Operating lease Income	$574	$247	$150	$120	$57	—	—

We apply the following practical expedients as allowed under ASC 842:


Practical Expedient						Description
Short-term leases						We do not record right-of-use assets or liabilities for short-term leases (a lease that at commencement date has a lease term of 12 months or less and does not contain a purchase option that is reasonably certain to be exercised).
Separation of lease and non-lease components						We do not separate non-lease components from the associated lease components if they have the same timing and pattern of transfer and, if accounted for separately, would both be classified as an operating lease.

NONCONTROLLING INTERESTS

12 Months Ended

Dec. 31, 2020

Equity Method Investments and Joint Ventures [Abstract]

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 417,000 legal acres of New Zealand timberland. Accordingly, we consolidate the New Zealand subsidiary’s balance sheet and results of operations. The portions of the consolidated financial position and results of operations attributable to the New Zealand subsidiary’s 23% noncontrolling interest are reflected as an adjustment to income in our Consolidated Statements of Income and Comprehensive Income under the caption “Net loss (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.

In September 2020, the New Zealand subsidiary made a capital distribution to its partners on a pro rata basis in order to redeem certain equity interests. A portion of this capital distribution was reinvested by the partners in shareholder loans to the New Zealand subsidiary. Our capital distribution and portion of the shareholder loan are eliminated in consolidation. The capital distribution to the minority shareholder and its reinvestment in the shareholder loan resulted in the recording of a noncontrolling interest share redemption of $5.1 million and a loan payable by the New Zealand subsidiary in the amount of $23.3 million due in 2025 at a fixed interest rate of 2.95%. As of December 31, 2020, the outstanding balance on the shareholder loan is $24.9 million. Except for changes in the New Zealand foreign exchange rate, there have been no adjustments to the carrying value of the shareholder loan since its inception. See Note 8 - Debt for further information.

The following table sets forth the income attributable to the New Zealand subsidiary’s noncontrolling interests:


	2020	2019
Net income attributable to noncontrolling interest in the New Zealand subsidiary	$4,920	$8,573

ORM Timber Fund II, Inc. (Fund II), ORM Timber Fund III LLC (Fund III), and ORM Timber Fund IV LLC. (Fund IV) (Collectively, the “Funds”)

Upon completion of the Mergers, we became manager of three private equity timber funds, Fund II, Fund III, and Fund IV, and obtained ownership interests in the Funds of 20%, 5%, and 15%, respectively. We determined, based upon an analysis under the variable interest entity guidance, that we have the power to direct the activities that most significantly impact the Funds’ economic success. Therefore, we are considered the primary beneficiary and are required under ASC 810 — Consolidation to consolidate the Funds. Loss attributed to third-party investors is reflected as an adjustment to income in our Consolidated Statements of Income and Comprehensive Income under the caption “Net loss (income) attributable to noncontrolling interests in consolidated affiliates.”

The following table sets forth the (loss) attributable to the Funds’ noncontrolling interests:


	2020	2019
Net loss attributable to noncontrolling interest in the Funds:	($12,221)	—

Prior to the Mergers, the Funds were formed by ORM LLC for the purpose of generating a return on investment through the acquisition, management, value enhancement and sale of timberland properties. Each Fund is organized to operate for a specified term from the end of its respective investment period: 10 years for each of Fund

II and Fund III, and 15 years for Fund IV. Fund II is scheduled to terminate in March 2023, Fund III is scheduled to terminate in December 2025 and Fund IV is scheduled to terminate in January 2035. The obligations of each of the Funds do not have any recourse to the Company or the Operating Partnership.

Ferncliff Investors

We also acquired in the Mergers an ownership interest in a real estate joint venture entity. In 2017, Ferncliff Management and Ferncliff Investors were formed for the purpose of raising capital from third parties to invest in an unconsolidated real estate joint venture entity (“joint venture investment”), Bainbridge Landing LLC, to develop a five-acre parcel on Bainbridge Island, Washington into a multi-family community containing apartments and townhomes. Ferncliff Management, a wholly-owned subsidiary, serves as manager of Ferncliff Investors and holds a 33.33% equity interest with the remaining ownership interest being held by third-party investors. Ferncliff Investors holds a 50% interest in Bainbridge Landing LLC, the joint venture entity that owns and is developing the property.

We determined, based upon an analysis under the variable interest entity guidance, that we have the power to direct the activities that most significantly impact Ferncliff Investors economic success. Therefore, we are considered the primary beneficiary and are required under ASC 810 — Consolidation to consolidate Ferncliff Investors. The obligations of Ferncliff Investors do not have any recourse to the Company or the Operating Partnership.

Bainbridge Landing LLC is considered a voting interests entity. Ferncliff Investors accounts for its interest in the joint venture entity under the equity method because neither it nor the other member can exercise control over Bainbridge Landing LLC. Under the equity method, Ferncliff Investors records its share of the net income or loss of Bainbridge Landing LLC. To date, this activity has been a loss primarily due to depreciation and is included in Other operating expense, net in the Real Estate segment. The portion of Ferncliff Investors’ loss attributed to third-party investors is shown within the Consolidated Statements of Income and Comprehensive Income under the caption “Net loss (income) attributable to noncontrolling interests in consolidated affiliates.”

The following table sets forth the (loss) attributable to Ferncliff Investors’ noncontrolling interests:


	2020	2019
Net (loss) attributable to noncontrolling interest in the Ferncliff Investors:	($526)	—

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:


															2020
Beginning noncontrolling interests in the Operating Partnership															—
Issuances of Redeemable Operating Partnership Units															106,752
Adjustment of noncontrolling interests in the Operating Partnership															24,393
Conversions of Redeemable Operating Partnership Units to Common Shares															(496)
Net (Loss) Income attributable to noncontrolling interests in the Operating Partnership															528
Other Comprehensive Income attributable to noncontrolling interests in the Operating Partnership															2,540
Distributions to noncontrolling interests in the Operating Partnership															(3,596)
Total noncontrolling interests in the Operating Partnership															$130,121

SEGMENT AND GEOGRAPHICAL INFORMATION

12 Months Ended

Dec. 31, 2020

Segment Reporting [Abstract]

SEGMENT AND GEOGRAPHICAL INFORMATION

As a result of the merger with Pope Resources, we have revised our reportable business segments, adding one additional segment, Timber Funds. The Timber Funds segment represents operations of the three private equity timber funds included in the transaction – Fund II, Fund III and Fund IV (collectively, the “Funds”). Rayonier owns 20% of Fund II, 5% of Fund III, and 15% of Fund IV and is also the managing member of the Funds. As discussed in Note 6 - Noncontrolling Interests, the Funds are consolidated into our financial statements. The Timber Funds segment also includes fee revenue paid to us for managing the Funds, which consists of both fixed components based on invested capital and acres under management as well as variable components related to the harvest volumes of the Funds. These fees, which also represent an expense in the Timber Funds segment, are eliminated in consolidation.

We now operate in six reportable segments: Southern Timber, Pacific Northwest Timber, New Zealand Timber, Timber Funds, Real Estate, and Trading.

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 (loss) and 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 income (expense), miscellaneous income (expense) and income tax expense, are not considered by management to be part of segment operations and are included under “unallocated interest expense and other.”

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


	Sales by Product Line
	2020	2019	2018
Southern Timber	$191,831	$194,111	$169,995
Pacific Northwest Timber	120,809	85,414	109,832
New Zealand Timber	202,315	241,861	249,014
Timber Funds (a)	29,557	—	—
Real Estate
Improved Development	14,498	5,882	8,336
Unimproved Development	8,426	19,476	8,621
Rural (b)	67,152	47,647	46,280
Timberland & Non-Strategic (b)	19,255	1,338	75,281
Conservation Easement	3,099	—	—
Deferred Revenue/Other	888	544	57
Large Dispositions	116,027	—	—
Total Real Estate	229,345	74,887	138,575
Trading	88,973	115,438	148,814
Intersegment eliminations (c)	(3,676)	(155)	(92)
Total Sales	$859,154	$711,556	$816,138

(a)The year ended December 31, 2020 includes $22.7 million of sales attributable to noncontrolling interest in Timber Funds.

(b)The years ended December 31, 2019 and 2018 reflect the reclassification of certain real estate sales between the Rural and Timberland & Non-Strategic sales categories to better align with the way management internally evaluates real estate sales.

(c)Primarily consists of the elimination of timberland investment management fees paid to us by the timber funds which are initially recognized as sales and cost of sales within the Timber Funds segment, as well as log marketing fees paid to our New Zealand Timber segment from our Southern Timber and Pacific Northwest Timber segments for marketing log export sales.


	Operating Income (Loss)
	2020	2019	2018
Southern Timber (a)	$41,247	$57,804	$44,245
Pacific Northwest Timber	(9,979)	(12,427)	8,137
New Zealand Timber	29,984	48,035	62,754
Timber Funds (b)	(13,195)	—	—
Real Estate (c)	71,951	38,665	76,240
Trading	(462)	8	953
Corporate and other (d)	(45,158)	(25,058)	(22,261)
Total Operating Income	74,388	107,027	170,068
Unallocated interest expense and other	(37,595)	(26,409)	(27,502)
Total Income before Income Taxes	$36,793	$80,618	$142,566

(a)The year ended December 31, 2020 includes $6.0 million of timber write-offs resulting from casualty events. 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 year ended December 31, 2020 includes $11.6 million of operating loss attributable to noncontrolling interest in Timber Funds. Included in operating loss attributable to noncontrolling interest in Timber Funds for the year ended December 31, 2020 is $7.3 million related to timber write-offs resulting from casualty events attributable to noncontrolling interest in Timber Funds. The year ended December 31, 2020 also includes $1.8 million of timber write-offs resulting from casualty events attributable to Rayonier. Timber write-offs resulting from casualty events are recorded within the Consolidated Statements of Income and Comprehensive Income under the caption “Cost of sales.”

(c)The year ended December 31, 2020 includes $28.7 million from a Large Disposition.

(d)The year ended December 31, 2020 includes $17.2 million of integration and restructuring costs related to the merger with Pope Resources. See Note 21 — Charges for Integration and Restructuring for additional details.


	Gross Capital Expenditures
	2020	2019	2018
Capital Expenditures (a)
Southern Timber	$35,505	$34,574	$35,388
Pacific Northwest Timber	11,367	11,220	9,311
New Zealand Timber	16,595	17,357	17,318
Timber Funds (b)	2,606	—	—
Real Estate	428	204	284

Corporate and other	—	641	24
Total capital expenditures	$66,500	$63,996	$62,325

Timberland Acquisitions (c)
Southern Timber	$24,241	$98,927	$45,943
Pacific Northwest Timber	—	7,340	—
New Zealand Timber	454	36,020	11,665



Total timberland acquisitions	$24,695	$142,287	$57,608

Total Gross Capital Expenditures	$91,195	$206,283	$119,933

(a)Excludes timberland acquisitions presented separately in addition to real estate development investments of $6.5 million, $6.8 million and $9.5 million in the years 2020, 2019 and 2018, respectively.

(b)The year ended December 31, 2020 includes $2.3 million of capital expenditures attributable to noncontrolling interest in Timber Funds.

(c)Excludes timberland acquired in the Pope Resources merger. For additional information, see Note 2 - Merger with Pope Resources.


	Depreciation, Depletion and Amortization
	2020	2019	2018
Southern Timber	$61,827	$61,923	$58,609
Pacific Northwest Timber	47,107	29,165	32,779
New Zealand Timber	25,030	27,761	28,007
Timber Funds (a)	11,884	—	—
Real Estate (b)	53,093	8,229	23,566

Corporate and other	1,427	1,157	1,160
Total	$200,368	$128,235	$144,121

(a)The year ended December 31, 2020 includes $10.3 million of depreciation, depletion and amortization attributable to noncontrolling interest in Timber Funds.

(b)The year ended December 31, 2020 includes $35.4 million from a Large Disposition.


	Non-Cash Cost of Land and Improved Development
	2020	2019	2018



Real Estate (a)	$82,008	$12,565	$23,553

(a) The ended December 31, 2020 includes $51.6 million from a Large Disposition.


	Geographical Operating Information
	Sales			Operating Income			Identifiable Assets
	2020	2019	2018	2020	2019	2018	2020	2019
United States	$567,998	$354,395	$390,396	$44,877	$58,945	$83,357	$3,104,916	$2,288,642
New Zealand	291,156	357,161	425,742	29,511	48,082	86,711	623,817	572,354
Total	$859,154	$711,556	$816,138	$74,388	$107,027	$170,068	$3,728,733	$2,860,996

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

DEBT

12 Months Ended

Dec. 31, 2020

Debt Disclosure [Abstract]

DEBT

Our debt consisted of the following at December 31, 2020 and 2019:


	2020	2019
Debt, excluding Timber Funds:
Term Credit Agreement borrowings due 2028 at a variable interest rate of 1.8% at December 31, 2020	$350,000	$350,000
Senior Notes due 2022 at a fixed interest rate of 3.75%	325,000	325,000
Incremental Term Loan Agreement borrowings due 2026 at a variable interest rate of 2.1% at December 31, 2020	300,000	300,000
2020 Incremental Term Loan Facility borrowings due 2025 at a variable interest rate of 2.0% at December 31, 2020	250,000	—
Revolving Credit Facility borrowings due 2025 at an average variable interest rate of 1.7% at December 31, 2020	—	82,000
New Zealand subsidiary noncontrolling interest shareholder loan due 2025 at a fixed interest rate of 2.95%	24,903	—
Northwest Farm Credit Services Credit Facility with quarterly interest-only payments, collateralized by Core Timberlands, with the following tranches (a)
Due 2025 at a fixed interest rate of 6.1%	11,601	—
Due 2028 at a fixed interest rate of 4.1%	12,018	—
Due 2033 at a fixed interest rate of 5.3%	19,430	—
Due 2036 at a fixed interest rate of 5.4%	9,868	—
Total debt, excluding Timber Funds	1,302,820	1,057,000
Less: Current maturities of long-term debt	—	(82,000)
Less: Deferred financing costs, excluding Timber Funds	(2,484)	(1,871)
Long-term debt, net of deferred financing costs, excluding Timber Funds	1,300,336	973,129


Debt, Timber Funds:
Fund II Mortgages Payable, collateralized by Fund II timberlands with quarterly interest payments, as follows: (a)
Due 2022 at a fixed interest rate of 2.0%	11,000	—
Due 2022 at a fixed interest rate of 2.0%	14,000	—
Fund III Mortgages Payable, collateralized by Fund III timberlands with quarterly interest payments, as follows (a):
Due 2023 at a fixed interest rate of 5.1%	19,563	—
Due 2024 at a fixed interest rate of 4.5%	15,626	—
Total debt, Timber Funds	60,189	—
Less: Deferred financing costs, Timber Funds	(10)	—
Long-term debt, net of deferred financing costs, Timber Funds	60,179	—



Long-term debt, net of deferred financing costs	$1,360,515	$973,129

(a) See the section below labeled “Long-Term Debt Assumed in the Pope Resources Merger” for additional details.

Principal payments due during the next five years and thereafter are as follows:


	Excluding Timber Funds	Timber Funds	Total
2021	—	—	—
2022	325,000	25,000	350,000
2023	—	17,980	17,980
2024	—	14,400	14,400
2025	284,903	—	284,903
Thereafter	685,000	—	685,000
Total debt	$1,294,903	$57,380	$1,352,283

TERM CREDIT AGREEMENT

In August 2015, we entered into a credit agreement with CoBank, ACB, as administrative agent, and a syndicate of Farm Credit institutions and other commercial banks to provide $550 million of new credit facilities, including a nine-year $350 million term loan facility. In April 2020, the maturity date of the Term Credit Agreement was extended from August 5, 2024 to April 1, 2028. In connection herewith, we recorded deferred financing costs in the amount of $0.5 million which are being amortized over the term of the Term Credit Agreement. The periodic interest rate on the term loan facility is subject to a pricing grid based on our leverage ratio, as defined in the credit agreement. As of December 31, 2020, the periodic interest rate on the term loan facility was LIBOR plus 1.600%. Monthly payments of interest only are due on this loan through maturity. Following the closing of the term loan, we entered into several interest rate swap transactions to fix the cost of the term loan facility over its nine-year term. The term credit agreement allows us to receive annual patronage payments, which are profit distributions made by a cooperative to its member-users based on the quantity or value of business done with the member-user. We estimate the effective interest rate on the term loan facility to be approximately 3.2% after consideration of the interest rate swaps and estimated patronage refunds. For additional information on the our interest rate swaps see Note 16 — Derivative Financial Instruments and Hedging Activities.

3.75% SENIOR NOTES ISSUED MARCH 2012

In March 2012, Rayonier Inc. issued $325 million of 3.75% Senior Notes due 2022, guaranteed by certain subsidiaries. Semi-annual payments of interest only are due on these notes through maturity.

INCREMENTAL TERM LOAN AGREEMENT

In April 2016, we entered into an incremental term loan agreement with CoBank, ACB, as administrative agent, and a syndicate of Farm Credit institutions to provide a 10-year, $300 million incremental term loan. The periodic interest rate on the incremental term loan agreement is subject to a pricing grid based on our leverage ratio, as defined in the credit agreement. As of December 31, 2020, the periodic interest rate on the incremental term loan was LIBOR plus 1.900%. Monthly payments of interest only are due on this loan through maturity. Following the closing of the incremental term loan, we entered into several interest rate swap transactions to fix the cost of the facility over its 10-year term. We estimate the effective interest rate on the incremental term loan facility to be approximately 2.8% after consideration of the interest rate swaps and estimated patronage payments. For additional information on our interest rate swaps see Note 16 — Derivative Financial Instruments and Hedging Activities.

2020 INCREMENTAL TERM LOAN AGREEMENT

In April 2020, we entered into an Incremental Term Loan Agreement, which provided for the advancement of a five-year $250 million senior unsecured incremental term loan facility. In connection herewith, we recorded deferred financing costs in the amount of $0.8 million which are being amortized over the term of the 2020 Incremental Term Loan Facility. The proceeds from the 2020 Incremental Term Loan Facility were used to fund our acquisition of Pope Resources. As of December 31, 2020, the periodic interest rate on the incremental term loan was LIBOR plus 1.850%. Monthly payments of interest only are due on this loan through maturity. Following the closing of the incremental term loan, we entered into an interest rate swap transaction to fix the cost of the facility over its 5-year term. We estimate the effective interest rate on the incremental term loan facility to be approximately 2.3% after consideration of the interest rate swap and estimated patronage payments. For additional information on our interest rate swaps see Note 16 — Derivative Financial Instruments and Hedging Activities.

REVOLVING CREDIT FACILITY

In April 2020, we amended our Revolving Credit Facility, originally entered into in 2015, with two amendments to the credit agreement: the first amendment increased the limit on the Revolving Credit Facility from $200 million to $250 million and extended its maturity date from August 5, 2020 to April 1, 2025, and the second amendment further increased the limit to $300 million. In connection herewith, we recorded deferred financing costs in the amount of $1.2 million which are being amortized over the term of the Revolving Credit Facility. The periodic interest rate on the revolving credit facility is subject to a pricing grid based on our leverage ratio, as defined in the credit agreement. As of December 31, 2020, the periodic interest rate on the revolving credit facility was LIBOR plus 1.500%, with an unused commitment fee of 0.175%. Monthly payments of interest only are due on this loan through maturity.

During the year ended December 31, 2020, we made borrowings of $70.0 million and repayments of $152.0 million on our Revolving Credit Facility. At December 31, 2020, we had available borrowings of $299.1 million under the Revolving Credit Facility, net of $0.9 million to secure our outstanding letters of credit.

NEW ZEALAND SUBSIDIARY DEBT

In April 2013, we acquired an additional 39% interest in our New Zealand subsidiary, bringing our total ownership to 65%, and as a result, the New Zealand subsidiary’s debt was consolidated effective on that date. On March 3, 2016, as a result of a capital contribution, our ownership interest in the New Zealand subsidiary increased to 77%. See Note 6 - Noncontrolling Interests for further information.

WORKING CAPITAL FACILITY

In June 2020, the New Zealand subsidiary renewed its NZ$20 million working capital facility for an additional 12-month term. The NZ$20 million working capital 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. During the year ended December 31, 2020, the New Zealand subsidiary made no borrowings and repayments on its working capital facility. At December 31, 2020, there was no outstanding balance on the working capital facility.

SHAREHOLDER LOAN

LONG-TERM DEBT ASSUMED IN THE POPE RESOURCES MERGER

Northwest Farm Credit Services Credit Facility

We assumed five tranches of a credit facility payable to Northwest Farm Credit Services (the “NWFCS Credit Facility”) totaling $45.0 million. Quarterly payments of interest only are due on the NWFCS Credit Facility through the respective maturity of each tranche. The NWFCS Credit Facility is collateralized by a portion of the Pacific Northwest timberlands acquired in the merger with Pope Resources. The NWFCS Credit Facility allows us to receive annual patronage payments, which are profit distributions made by a cooperative to its member-users based on the quantity or value of business done with the member-user.

The pertinent details of each tranche of the NWFCS Credit Facility we assumed are as follows:


Tranche	Stated Fixed Interest Rate		Effective Fixed Interest Rate (a)		Stated Principal Amount	Est. Fair Value at Merger Date (b)
Tranche 2 (Due 2025)	6.1	%	4.8	%	$10,000	$11,838
Tranche 4 (Due 2028)	4.1	%	3.1	%	11,000	12,108
Tranches 6 & 7 (Due 2033)	5.3	%	4.2	%	16,000	19,609
Tranche 8 (Due 2036)	5.4	%	4.3	%	8,000	9,947
Total NWFCS Credit Facility assumed					$45,000	$53,502

(a)Estimated effective fixed interest rates as of December 31, 2020 after consideration of estimated patronage refunds.

(b)The fair market value premium will be amortized as a benefit to interest expense over the maturity term of each tranche.

Fund II Mortgage Payable

We assumed Fund II's two mortgages payable (the “Fund II Mortgages Payable”) to MetLife totaling $25.0 million. Quarterly payments of interest only are due on the Fund II Mortgages Payable through their respective maturities. The Fund II Mortgages Payable are collateralized by Fund II Timberlands and do not have any recourse to the Company or the Operating Partnership.

On September 1, 2020, we entered into an agreement to extend the maturity date of the Fund II Mortgages Payable from September 2020 to September 2022. Additionally, the fixed interest rates on both the $11 million tranche and the $14 million tranche were changed to 2.0%, from 4.9% and 3.8%, respectively. Beginning January 1, 2021, this fixed rate will transition to a variable rate of 3-month LIBOR plus 1.700%.

The pertinent details of the Fund II Mortgages Payable are as follows:


Maturity Date	Stated Fixed Interest Rate (a)		Stated Principal Amount	Est. Fair Value at Merger Date (b)
September 2022	2.0	%	$11,000	$11,061
September 2022	2.0	%	14,000	14,023
			$25,000	$25,084

(a)Beginning January 1, 2021, this will transition from a fixed to a variable interest rate of 3-month LIBOR plus 1.700%.

(b)The fair market value premium has been amortized as a benefit to interest expense over the original maturity term of each mortgage.

Fund III Mortgage Payable

We assumed Fund III’s two mortgages payable (the “Fund III Mortgages Payable”) to NWFCS totaling $32.4 million. Quarterly payments of interest only are due on the Fund III Mortgages Payable through their respective maturities. The Fund III Mortgages Payable are collateralized by Fund III Timberlands and do not have any recourse to the Company or the Operating Partnership.

The pertinent details of the Fund III Mortgages Payable are as follows:


Maturity Date	Stated Fixed Interest Rate		Effective Fixed Interest Rate (a)		Stated Principal Amount	Est. Fair Value at Merger Date (b)
December 2023	5.1	%	3.9	%	$17,980	$19,915
October 2024	4.5	%	3.2	%	14,400	15,844
					$32,380	$35,759

(a)Estimated effective fixed interest rates as of December 31, 2020 after consideration of estimated patronage refunds.

(b)The fair market value premium will be amortized as a benefit to interest expense over the maturity term of each mortgage.

DEBT COVENANTS — EXCLUDING TIMBER FUNDS

In connection with our $350 million Term Credit Agreement, $300 million Incremental Term Loan Agreement, $250 million 2020 Incremental Term Loan Agreement and $300 million 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 December 31, 2020, 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		9.20 to 1		6.70
Covenant debt to covenant net worth plus covenant debt shall not exceed	65	%	47	%	18	%

In connection with our $45 million NWFCS Credit Facility, customary covenants must be met, the most significant of which include interest coverage and debt-to-capitalization ratios.

The covenants listed below, which are the most significant financial covenants in effect as of December 31, 2020, are calculated on a trailing 12-month basis:


	Covenant Requirement		Actual Ratio		Favorable
Covenant loan-to-appraised value shall not exceed	50%		12%		38	%
Covenant EBITDA to consolidated interest expense should not be less than	2.5 to 1		9.20 to 1		6.70
Covenant debt to covenant net worth plus covenant debt shall not exceed	65	%	47	%	18	%

In addition to these financial covenants listed above, the 2022 Notes, Term Credit Agreement, Incremental Term Loan Agreement, 2020 Incremental Term Loan Facility, Revolving Credit Facility, and NWFCS Credit Facility include customary covenants that limit the incurrence of debt and the disposition of assets, among others. At December 31, 2020, we were in compliance with all applicable covenants.

DEBT COVENANTS — TIMBER FUNDS

The Fund II Mortgages Payable to MetLife contains a requirement to maintain a loan-to-value ratio of less than 50%, with the denominator defined as fair market value of the timberland pledged as collateral.

The Fund III Mortgages Payable to NWFCS contain a requirement to maintain a minimum interest coverage ratio of 1.5:1, minimum working capital of $500,000, and a loan-to-value ratio of less than 50%, with the denominator defined as fair market value.

Both Timber Funds are in compliance with their respective debt covenants as of December 31, 2020.

HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS

12 Months Ended

Dec. 31, 2020

Inventory Disclosure [Abstract]

HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS

We continuously 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 periodically 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.

In the merger with Pope Resources, we acquired HBU properties with an estimated fair value of $26.5 million. This includes development properties in the town of Port Gamble, Washington, development projects in Gig Harbor, Kingston, and Bremerton, Washington and various other assets.

An analysis of higher and better use timberlands and real estate development investments from December 31, 2019 to December 31, 2020 is shown below:


	Higher and Better Use Timberlands and Real Estate Development Investments
	Land and Timber	Development Investments	Total
Non-current portion at December 31, 2019	$58,091	$23,700	$81,791
Plus: Current portion (a)	274	12,389	12,663
Total Balance at December 31, 2019	58,365	36,089	94,454
Non-cash cost of land and improved development	(1,834)	(7,390)	(9,224)
Timber depletion from harvesting activities and basis of timber sold in real estate sales	(725)	—	(725)
Capitalized real estate development investments (b)	—	6,462	6,462
HBU properties acquired in merger with Pope Resources (c)	26,510	—	26,510
Capital expenditures (silviculture)	427	—	427

Intersegment transfers	(2,630)	—	(2,630)

Total Balance at December 31, 2020	80,113	35,161	115,274
Less: Current portion (a)	(212)	(6,544)	(6,756)
Non-current portion at December 31, 2020	$79,901	$28,617	$108,518

(a)The current portion of Higher and Better Use Timberlands and Real Estate Development Investments is recorded in Inventory. See Note 22 — Inventory for additional information.

(b)Capitalized real estate development investments includes $0.4 million of capitalized interest.

(c)Based on preliminary estimates of fair value as of December 31, 2020. See Note 2 - Merger with Pope Resources for additional information.

COMMITMENTS

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS

At December 31, 2020, the future minimum payments under non-cancellable commitments were as follows:


	Environmental Remediation (a)	Development Projects (b)	Commitments (c)	Total
2021	$1,026	$10,723	$14,341	$26,090
2022	1,864	267	17,232	19,363
2023	1,853	267	17,996	20,116
2024	1,853	267	15,228	17,348
2025	2,338	267	10,303	12,908
Thereafter	2,706	3,899	29,171	35,776
	$11,640	$15,690	$104,271	$131,601

(a)Environmental remediation represents our estimate of potential liability associated with environmental contamination and Natural Resource Damages (NRD) in Port Gamble, Washington. See Note 13 - Environmental and Natural Resource Damage Liabilities for additional information.

(b)Primarily consisting of payments expected to be made on our Wildlight, Richmond Hill and West Puget Sound development projects.

(c)Commitments include payments expected to be made on derivative financial instruments (interest rate swaps and forward-starting interest rate swaps), timberland deeds and other purchase obligations.

INCOME TAXES

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

Rayonier is a REIT under the Internal Revenue Code and therefore generally does not pay U.S. federal or state income tax. Through the Mergers, Rayonier transferred all of its assets to the Operating Partnership on May 8, 2020. See Note 1 - Summary of Significant Accounting Policies for more information. As a result, Rayonier owns a 96.9% interest 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 FROM CONTINUING OPERATIONS

The provision for income taxes for each of the three years ended December 31 follows:


	2020	2019	2018
Current
U.S. federal	($237)	$2	$2
State	(339)	(122)	37
Foreign	(5,391)	(1,542)	(1,914)
	(5,967)	(1,662)	(1,875)
Deferred
U.S. federal	8,355	465	3,803
State	325	17	146
Foreign	(3,027)	(11,278)	(23,360)
	5,653	(10,796)	(19,411)
Changes in valuation allowance	(6,695)	(482)	(3,950)
Total	($7,009)	($12,940)	($25,236)

A reconciliation of the U.S. federal statutory income tax rate to the actual income tax rate for each of the three years ended December 31 follows:


	2020			2019			2018
U.S. federal statutory income tax rate	($7,726)	(21.0)	%	($16,930)	(21.0)	%	($29,939)	(21.0)	%
U.S. and foreign REIT income	16,569	45.0		19,902	24.7		32,949	23.1
Matariki Group and Rayonier New Zealand Ltd	(7,698)	(20.8)		(11,181)	(13.9)		(23,166)	(16.2)

Change in valuation allowance	(6,695)	(18.2)		(482)	(0.6)		(3,950)	(2.8)
State Net Operating Loss	1,118	3.0		—	—		—	—
Prepaid land sales	(1,084)	(2.9)		—	—		—	—




Internal transfer of assets deferred	—	—		(1,815)	(2.3)		—	—

Foreign income tax withholding	(721)	(2.0)		(1,535)	(1.9)		(1,848)	(1.3)
Other	(772)	(2.1)		(899)	(1.1)		718	0.5
Income tax expense as reported for net income	($7,009)	(19.0)	%	($12,940)	(16.1)	%	($25,236)	(17.7)	%

The Company’s effective tax rate is below the 21 percent U.S. statutory rate primarily due to tax benefits associated with being a REIT.

DEFERRED TAXES

Deferred income taxes result from differences between the timing of recognizing revenues and expenses for financial book purposes versus income tax purposes. The nature of the temporary differences and the resulting net deferred tax asset/liability for the two years ended December 31 follows:


	2020	2019
Gross deferred tax assets:
Pension, postretirement and other employee benefits	$1,403	$1,512
New Zealand subsidiary	23,461	23,211
CBPC tax credit carry forwards	14,555	14,555
Capitalized real estate costs	1,459	6,635
U.S. TRS net operating loss	18,363	5,410
Land basis difference	9,468	10,626
Other	5,502	4,356
Total gross deferred tax assets	74,211	66,305
Less: Valuation allowance	(46,015)	(39,320)
Total deferred tax assets after valuation allowance	$28,196	$26,985
Gross deferred tax liabilities:
Accelerated depreciation	(38)	(23)

New Zealand subsidiary	(98,245)	(87,548)


Other	(4,884)	(3,938)
Total gross deferred tax liabilities	(103,167)	(91,509)
Net deferred tax liability reported as noncurrent	($74,971)	($64,524)

Net operating loss (“NOL”) and tax credit carryforwards as of the two years ended December 31 follows:


	Tax Effected Balance	Expiration
2020

U.S. Federal NOL Carryforwards- Pre TCJA (a)	$2,363	2036
U.S. Federal NOL Carryforwards- Post TCJA (a)	13,017	None
U.S State NOL Carryforwards (b)	2,983	2031
Cellulosic Biofuel Producer Credit (c)	14,555	2023


2019
New Zealand subsidiary NOL carryforwards	$3,262	None
U.S. Federal NOL Carryforwards- Pre TCJA (a)	2,363	2036
U.S. Federal NOL Carryforwards- Post TCJA (a)	1,872	None
U.S State NOL Carryforwards (b)	1,175	2031
Cellulosic Biofuel Producer Credit (c)	14,555	2023

(a)The Tax Cuts and Jobs Act (TCJA) was signed into law on December 22, 2017. The TCJA lifted the 20-year federal NOL Carryforward period. Net operating losses generated after 12/31/2017 have an indefinite carryforward period.

(b)The U.S. state NOL is made up of several jurisdictions that expire in various future years. No State NOL is set to expire before 12/31/2031.

(c)The Further Consolidated Appropriations Act, 2020 was signed into law on December 20, 2019. The Further Consolidated Appropriations Act, 2020 included the Taxpayer Certainty and Disaster Relief Act of 2019 (Tax Extenders Act), which temporarily renewed approximately two dozen credits that previously expired or were set to expire at the end of 2019. The Cellulosic Biofuel Producer Credit was one of the credits extended under this act.

Valuation allowances are provided when it is considered more likely than not that the deferred tax assets will not be recorded. Since 2015, we have had a 100% valuation allowance against the U.S. taxable REIT subsidiary's deferred tax assets, net of deferred tax liabilities. During 2020, the net deferred tax assets increased by $6.7 million, and thus the valuation allowance was adjusted accordingly. We recorded a change in the valuation allowance of $6.7 million related to the U.S. TRS's deferred tax assets, net of liabilities.

TAX STATUTES

The following table provides detail of the tax years that remain open to examination by the IRS and other significant taxing jurisdictions:


Taxing Jurisdiction			Open Tax Years
U.S. Internal Revenue Service			2017 - 2019
New Zealand Inland Revenue			2015 - 2019

TAX CHARACTERISTICS OF DIVIDEND DISTRIBUTIONS

The taxable nature of the dividend distributions paid for each of the three years ended December 31 follows:


	2020		2019		2018
Total dividends/distributions paid per common share/unit	$1.08		$1.08		$1.06
Tax characteristics:
Capital gain	100	%	100	%	100	%

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

CONTINGENCIES	12 Months Ended
CONTINGENCIES	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIES We 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 NATURAL RESOURCE DAMAGE LIABILITIES

12 Months Ended

Dec. 31, 2020

Environmental Remediation Obligations [Abstract]

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 the owner’s property, regardless of culpability for the release.

In connection to the merger with Pope Resources, we assumed ownership of certain real estate in Port Gamble, Washington, which requires environmental remediation under these laws.

An analysis of environmental and NRD liabilities from December 31, 2019 to December 31, 2020 is shown below:


			Port Gamble, WA (a)
Total Balance at December 31, 2019			—
Liabilities assumed in merger with Pope Resources			13,003
Expenditures			(1,362)

Total Balance at December 31, 2020			11,641
Less: Current portion			1,026
Non-current portion at December 31, 2020			$10,615

(a)Represents environmental and NRD liabilities assumed in the merger with Pope Resources. Pope & Talbot Inc. operated a sawmill from 1853 to 1995 and conducted shipping, log storage, and log transfer operations in the Port Gamble Bay area from 1974 to 2004. P&T’s operations resulted in the release of contaminated materials to the townsite, millsite, and adjacent bay. Prior to the merger, the in-water portion of the clean up was completed. In November 2020, a consent decree, which includes a cleanup action plan, was entered in Kitsap County Superior Court. Negotiations with the Trustees relating to NRD liabilities are currently ongoing and will ultimately result in agreement as to requested mitigation activities.

These estimates were based on assumptions that we believe to be reasonable; however, actual results may differ from these estimates. See Note 2 - Merger with Pope Resources for information regarding our preliminary estimates of fair value. It is expected that the millsite cleanup and NRD restoration will occur over the next two to three years, while the monitoring of the Port Gamble Bay, millsite and landfills will continue for an additional 10 to 15 years. The NRD costs are subject to change as the scope of the restoration projects become more clearly defined. It is reasonably possible that these components of the liability may increase as the project progresses. Management continues to monitor the Port Gamble cleanup process and will make adjustments as needed. Should any future circumstances result in a change to the estimated cost of the project, we will record an appropriate adjustment to the liability in the period it becomes known and when we can reasonably estimate the amount. For further information on the timing and amount of future payments related to our environmental remediation liabilities, see Note 10 - Commitments.

GUARANTEES

12 Months Ended

Dec. 31, 2020

Guarantees [Abstract]

GUARANTEES

We provide financial guarantees as required by creditors, insurance programs, and various governmental agencies. As of December 31, 2020, the following financial guarantees were outstanding:


Financial Commitments (a)			Maximum Potential Payment
Standby letters of credit			$885

Surety bonds (b)			7,284
Total financial commitments			$8,169

(a)We have not recorded any liabilities for these financial commitments in the Consolidated Balance Sheets. The guarantees are not subject to measurement, as the guarantees are dependent on our own performance.

(b)Surety bonds are issued primarily to secure performance obligations related to various operational activities, to provide collateral for our Wildlight development project in Nassau County, Florida and in connection with pending and completed sales from the Harbor Hill project in Gig Harbor, Washington. These surety bonds expire at various dates during 2021, 2022 and 2023 and are expected to be renewed as required.

EARNINGS PER SHARE AND PER UNIT

12 Months Ended

Dec. 31, 2020

Earnings Per Share [Abstract]

EARNINGS PER SHARE AND PER UNIT

Basic earnings per common share (“EPS”) is calculated by dividing net income attributable to Rayonier Inc. by the weighted average number of common shares outstanding during the year. Diluted EPS is calculated by dividing net income attributable to Rayonier Inc., before net income attributable to noncontrolling interests in the Operating Partnership by the weighted average number of common shares outstanding adjusted to include the potentially dilutive effect of outstanding stock options, performance shares, restricted shares, restricted stock units and noncontrolling interests in Operating Partnership units.

The following table provides details of the calculations of basic and diluted earnings per common share of the Company for the three years ended December 31:


	2020	2019	2018
Earnings per common share - basic
Numerator:
Net Income	$29,784	$67,678	$117,330
Less: Net (income) attributable to noncontrolling interest in the Operating Partnership	(528)	—	—
Less: Net loss (income) attributable to noncontrolling interests in consolidated affiliates	7,828	(8,573)	(15,114)
Net income attributable to Rayonier Inc.	$37,084	$59,105	$102,216
Denominator:
Denominator for basic earnings per common share - weighted average shares	133,865,867	129,257,202	129,043,627
Basic earnings per common share attributable to Rayonier Inc.:	$0.28	$0.46	$0.79
Earnings per common share - diluted
Numerator:
Net Income	$29,784	$67,678	$117,330
Less: Net loss (income) attributable to noncontrolling interest in consolidated affiliates	7,828	(8,573)	(15,114)

Net income attributable to Rayonier Inc., before net income attributable to noncontrolling interests in the Operating Partnership	$37,612	$59,105	$102,216
Denominator:
Denominator for basic earnings per common share - weighted average shares	133,865,867	129,257,202	129,043,627
Add: Dilutive effect of:
Stock options	633	12,209	71,276
Performance shares, restricted shares and restricted stock units	198,955	328,977	575,328
Noncontrolling interests in Operating Partnership units	2,877,447	—	—


Denominator for diluted earnings per common share - adjusted weighted average shares	136,942,902	129,598,388	129,690,231


Diluted earnings per common share attributable to Rayonier Inc.:	$0.27	$0.46	$0.79


	2020	2019	2018
Anti-dilutive shares excluded from computations of diluted earnings per share:
Stock options, performance shares, restricted shares and restricted stock units	450,551	450,681	254,282

Basic earnings per unit (“EPU”) is calculated by dividing net income available to unitholders of Rayonier, L.P. by the weighted average number of units outstanding during the year. Diluted EPU is calculated by dividing net income available to unitholders of Rayonier, L.P. by the weighted average number of units outstanding adjusted to include the potentially dilutive effect of outstanding unit equivalents, including stock options, performance shares, restricted shares and restricted stock units.

The following table provides details of the calculations of basic and diluted earnings per unit of the Operating Partnership for the three years ended December 31:


	2020	2019	2018
Earnings per unit - basic
Numerator:
Net Income	$29,784	$67,678	$117,330
Less: Net loss (income) attributable to noncontrolling interests in consolidated affiliates	7,828	(8,573)	(15,114)
Net income available to unitholders	$37,612	$59,105	$102,216
Denominator:
Denominator for basic earnings per unit - weighted average units	136,743,314	129,257,202	129,043,627
Basic earnings per unit attributable to Rayonier, L.P.:	$0.28	$0.46	$0.79
Earnings per unit - diluted
Numerator:
Net Income	$29,784	$67,678	$117,330
Less: Net loss (income) attributable to noncontrolling interest in consolidated affiliates	7,828	(8,573)	(15,114)

Net income available to unitholders	$37,612	$59,105	$102,216
Denominator:
Denominator for basic earnings per unit - weighted average units	136,743,314	129,257,202	129,043,627
Add: Dilutive effect of unit equivalents:
Stock options	633	12,209	71,276
Performance shares, restricted shares and restricted stock units	198,955	328,977	575,328


Denominator for diluted earnings per unit - adjusted weighted average units	136,942,902	129,598,388	129,690,231


Diluted earnings per unit attributable to Rayonier, L.P.	$0.27	$0.46	$0.79


	2020	2019	2018
Anti-dilutive unit equivalents excluded from computations of diluted earnings per unit:
Stock options, performance shares, restricted shares and restricted stock units	450,551	450,681	254,282

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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. We also use derivative financial instruments to mitigate exposure to foreign currency risk due to the translation of the investment in Rayonier’s New Zealand-based operations from New Zealand dollars to U.S. dollars.

FOREIGN CURRENCY EXCHANGE AND OPTION CONTRACTS

The functional currency of Rayonier New Zealand Limited, and the New Zealand subsidiary is the New Zealand dollar. The New Zealand subsidiary is exposed to foreign currency risk on export sales and ocean freight payments, which are mainly denominated in U.S. dollars. The New Zealand subsidiary typically hedges 50% to 90% of its estimated foreign currency exposure with respect to the following twelve months forecasted sales and purchases less distributions and up to 75% of the forward 12 to 18 months. Additionally, the New Zealand subsidiary will occasionally hedge up to 50% of its estimated foreign currency exposure with respect to the following 18 to 48 months forecasted sales and purchases, less distributions, when New Zealand dollar is at a cyclical low versus the U.S. dollar. Foreign currency exposure from the New Zealand subsidiary’s trading operations is typically hedged based on the following three months forecasted sales and purchases. As of December 31, 2020, foreign currency exchange contracts and foreign currency option contracts had maturity dates through April 2022 and August 2021, respectively.

Foreign currency exchange and option contracts hedging foreign currency risk on export sales and ocean freight payments 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 accumulated in other comprehensive (loss) income 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 SWAPS

We are exposed to cash flow interest rate risk on our variable-rate Term Credit Agreement, Incremental Term Loan Agreement and 2020 Incremental Term Loan Facility, and use variable-to-fixed interest rate swaps 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.

The following table contains information on the outstanding interest rate swaps as of December 31, 2020:


Outstanding Interest Rate Swaps (a)
Date Entered Into	Term	Notional Amount	Related Debt Facility	Fixed Rate of Swap (b)		Bank Margin on Debt		Total Effective Interest Rate (c)
August 2015	9 years	$170,000	Term Credit Agreement	2.20	%	1.60	%	3.80	%
August 2015	9 years	180,000	Term Credit Agreement	2.35	%	1.60	%	3.95	%
April 2016	10 years	100,000	Incremental Term Loan	1.60	%	1.90	%	3.50	%
April 2016	10 years	100,000	Incremental Term Loan	1.60	%	1.90	%	3.50	%
July 2016	10 years	100,000	Incremental Term Loan	1.26	%	1.90	%	3.16	%
June 2020	10 years	250,000	2020 Incremental Term Loan	1.10	%	1.85	%	2.95	%

(a)All interest rate swaps have been designated as interest rate cash flow hedges and qualify for hedge accounting.

(b)The interest rate swap entered in June 2020, was an off-market derivative, meaning it contained an embedded financing element, which the counterparties recovered through an incremental change in the fixed rate over what would have been charged for an at-market swap.

(c)Rate is before estimated patronage payments.

TREASURY LOCKS

During the first quarter of 2020, we entered into treasury lock agreements, which were designated and qualified as cash flow hedges. These derivative instruments hedged the impact of changes in the benchmark interest rate to future interest payments associated with anticipated debt issuances. Prior to expiration, we de-designated and settled the treasury locks by converting them into interest rate swap lock agreements (discussed below). 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. Amounts recorded in AOCI in connection with the settled treasury locks were ($20.8) million which will be reclassified to earnings through interest expense over the life of the 2020 Incremental Term Loan Facility.

The following table contains information on the expired treasury lock agreements entered into during the twelve months ended December 31, 2020:

Converted Treasury Rate Locks (a)

Date Entered Into

Term

Notional Amount

Rate

Related Debt Facility (b)

Expiration Date

January 2020

10 years

$100,000

1.53%

2020 Incremental Term Loan Facility

March 30, 2020

January 2020

10 years

100,000

1.53%

2020 Incremental Term Loan Facility

March 31, 2020

February 2020

10 years

50,000

1.35%

2020 Incremental Term Loan Facility

March 31, 2020

(a) At inception, all treasury locks were designated as interest rate cash flow hedges and qualified for hedge accounting.

(b) See Note 8 — Debt for more information. We anticipate extending the term of the 2020 Incremental Term Loan facility for an additional five-year term upon maturity.

INTEREST RATE SWAP LOCKS

Upon de-designation, we converted the above treasury lock agreements to interest rate swap lock agreements to hedge the risk of changes in the interest payments attributable to changes in the benchmark LIBOR interest rate associated with anticipated issuances of debt. The interest rate swap locks were designated and qualified as cash flow hedges.

Prior to expiration, we de-designated and partially cash settled $11.1 million of the interest rate swap locks and converted them into interest rate swap agreements. 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 accumulated other comprehensive loss and is amortized using the straight-line method through interest expense over the remaining life of the hedged item. Incremental amounts recorded in accumulated other comprehensive loss in connection with the settled interest rate swap locks were ($1.4) million, which will be reclassified to earnings through interest expense over the life of the 2020 Incremental Term Loan Facility.

The following table contains information on the terminated interest rate swap lock agreements as of December 31, 2020:

Converted Interest Rate Swap Locks (a)

Date Entered Into

Term

Notional Amount

Fixed Rate of Swap Lock (b)

Related Debt Facility (c)

Termination Date

March 2020

10 years

$100,000

1.56%

2020 Incremental Term Loan Facility

June 30, 2020

March 2020

10 years

100,000

1.59%

2020 Incremental Term Loan Facility

June 30, 2020

March 2020

10 years

50,000

1.41%

2020 Incremental Term Loan Facility

June 30, 2020

(a) All interest rate swap locks have been designated as interest rate cash flow hedges and qualify for hedge accounting.

(b) These interest rate swap locks were off-market derivatives, meaning they contained an embedded financing element, which the counterparties recovered through an incremental charge in the fixed rate over what would have been charged for an at-market swap lock.

(c) See Note 8 — Debt for information. We anticipate extending the term of the 2020 Incremental Term Loan facility for an additional five-year term upon maturity.

FORWARD-STARTING INTEREST RATE SWAPS

We are exposed to cash flow interest rate risk on anticipated debt issuances and use forward-starting interest rate swap agreements to hedge against changes in future cash flows resulting from changes in interest rates from the trade date through the anticipated issuance date. 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.

The following table contains information on the outstanding forward-starting interest rate swaps as of December 31, 2020:

Outstanding Forward-Starting Interest Rate Swaps (a)

Date Entered Into

Term

Notional Amount

Fixed Rate of Swap

Related Debt Facility

Forward Date

Maximum Period Ending for Forecasted Issuance Date

February 2020

10 years

$325,000

1.40

Anticipated refinancing of Senior Notes due 2022

April 2022

March 2020

4 years

100,000

0.88

Term Credit Agreement

August 2024

N/A

May 2020

4 years

50,000

0.74

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.

CARBON OPTIONS

The New Zealand subsidiary enters into carbon options from time to time to sell carbon assets at certain prices. Changes in fair value of the carbon option contracts are recorded in “Interest and other miscellaneous income, net” as the contracts do not qualify for hedge accounting treatment. As of December 31, 2020, all existing carbon option contracts have expired.

The following table demonstrates the impact, gross of tax, of our derivatives on the Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 2020, 2019 and 2018.


	Location on Statement of Income and Comprehensive Income	2020	2019	2018
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	Other comprehensive (loss) income	$5,376	$2,211	($4,357)
Foreign currency option contracts	Other comprehensive (loss) income	1,211	159	(180)
Interest rate swaps	Other comprehensive (loss) income	(76,567)	(29,893)	8,745
Interest rate products	Interest Expense	10,769	(2,296)	(449)

Derivatives designated as a net investment hedge:
Foreign currency exchange contract	Other comprehensive (loss) income	—	—	(344)


Derivatives not designated as hedging instruments:
Foreign currency exchange contracts	Interest and other miscellaneous income, net	—	$135	$2,183
Carbon options	Interest and other miscellaneous income, net	563	(105)	(158)

During the next 12 months, the amount of the December 31, 2020 AOCI balance, net of tax, expected to be reclassified into earnings as a result of the maturation of our derivative instruments is a gain of approximately $4.7 million.

The following table contains the notional amounts of the derivative financial instruments recorded in the Consolidated Balance Sheets at December 31, 2020 and 2019:


	Notional Amount
	2020	2019
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	$49,000	$56,350
Foreign currency option contracts	28,000	22,000
Interest rate swaps	900,000	650,000
Forward-starting interest rate swaps	475,000	—

Derivatives not designated as hedging instruments:

Carbon options (a)	—	9,592

(a)Notional amount for carbon options is calculated as the number of units outstanding multiplied by the spot price as of the end of the period.

The following table contains the fair values of the derivative financial instruments recorded in the Consolidated Balance Sheets at December 31, 2020 and 2019. Changes in balances of derivative financial instruments are recorded as operating activities in the Consolidated Statements of Cash Flows:


		Fair Value Assets (Liabilities) (a)
	Location on Balance Sheet	2020	2019
Derivatives designated as cash flow hedges:
Foreign currency exchange contracts	Other current assets	$4,968	$424
	Other assets	1,050	390
	Other current liabilities	—	(172)

Foreign currency option contracts	Other current assets	1,526	151
	Other assets	—	209
	Other current liabilities	(11)	(27)
	Other non-current liabilities	—	(30)
Interest rate swaps	Other assets	—	2,614
	Other non-current liabilities	(51,580)	(11,068)
Forward-starting interest rate swaps	Other assets	513	—
	Other non-current liabilities	(13,042)	—

Derivatives not designated as hedging instruments:


Carbon options (a)	Other current liabilities	—	(607)

Total derivative contracts:
Other current assets		$6,494	$575
Other assets		1,563	3,213
Total derivative assets		$8,057	$3,788

Other current liabilities		(11)	(806)
Other non-current liabilities		(64,622)	(11,098)
Total derivative liabilities		($64,633)	($11,904)

(a)See Note 17 — 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

12 Months Ended

Dec. 31, 2020

Fair Value Disclosures [Abstract]

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 at December 31, 2020 and 2019, using market information and what we believe to be appropriate valuation methodologies under generally accepted accounting principles:


	December 31, 2020			December 31, 2019
Asset (liability) (a)	Carrying Amount	Fair Value		Carrying Amount	Fair Value
		Level 1	Level 2		Level 1	Level 2
Cash and cash equivalents, excluding Timber Funds	$80,454	$80,454	—	$68,735	$68,735	—
Cash and cash equivalents, Timber Funds	4,053	4,053	—	—	—	—
Restricted cash (b)	2,975	2,975	—	1,233	1,233	—
Current maturities of long-term debt, excluding Timber Funds	—	—	—	(82,000)	—	(82,000)

Long-term debt, excluding Timber Funds (c)	(1,300,336)	—	(1,313,631)	(973,129)	—	(981,500)
Long-term debt, Timber Funds (c)	(60,179)	—	(60,474)	—	—	—
Interest rate swaps (d)	(51,580)	—	(51,580)	(8,454)	—	(8,454)
Forward-starting interest rate swaps (d)	(12,529)	—	(12,529)	—	—	—
Foreign currency exchange contracts (d)	6,018	—	6,018	642	—	642
Foreign currency option contracts (d)	1,515	—	1,515	303	—	303
Carbon options contracts (d)	—	—	—	(607)	—	(607)
Marketable equity securities (e)	—	—	—	10,582	10,582	—
Noncontrolling Interests in the Operating Partnership (f)	130,121	130,121	—	—	—	—

(a)We did not have Level 3 assets or liabilities at December 31, 2020 and 2019.

(b)Restricted cash represents the proceeds from like-kind exchange sales deposited with a third-party intermediary and cash held in escrow for real estate development obligations. See Note 23 - Restricted Cash for additional information.

(c)The carrying amount of long-term debt is presented net of capitalized debt costs on non-revolving debt. See Note 8 — Debt for additional information.

(d)See Note 16 — Derivative Financial Instruments and Hedging Activities for information regarding the Balance Sheet classification of our derivative financial instruments.

(e)Investments in marketable securities are classified in “Other Assets” based on the nature of the securities and their availability for use in current operations. See Note 24 - Other Assets for additional information.

(f)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.

Rayonier uses the following methods and assumptions in estimating the fair value of its 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.

Carbon option contracts — The fair value of carbon option contracts is determined by a mark-to-market valuation using the Black-Scholes option pricing model, 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.

Marketable equity securities — The fair value of marketable equity securities is determined by quoted prices in their active market.

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.

The following table presents marketable equity securities that have been in a continuous unrealized gain position for less than 12 months and for 12 months or greater at December 31, 2020 and December 31, 2019:


	December 31, 2020				December 31, 2019
	Carrying Amount	Less than 12 Months	12 Months or Greater	Total	Carrying Amount	Less than 12 Months	12 Months or Greater	Total
Fair value of marketable equity securities	—	—	—	—	$10,582	$10,582	—	$10,582
Unrealized gains	—	—	—	—	—	3,043	—	3,043

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2020

Retirement Benefits [Abstract]

EMPLOYEE BENEFIT PLANS

We have one qualified non-contributory defined benefit pension plan covering a portion of its 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.

The following tables set forth the change in the projected benefit obligation and plan assets and reconcile the funded status and the amounts recognized in the Consolidated Balance Sheets for the pension and postretirement benefit plans for the two years ended December 31:


	Pension		Postretirement
	2020	2019	2020	2019
Change in Projected Benefit Obligation
Projected benefit obligation at beginning of year	$90,261	$79,559	$1,634	$1,303
Service cost	—	—	6	6
Interest cost	2,706	3,197	51	54


Actuarial loss (gain)	10,915	10,828	209	285


Benefits paid	(3,413)	(3,323)	(14)	(14)
Projected benefit obligation at end of year	$100,469	$90,261	$1,886	$1,634


Change in Plan Assets
Fair value of plan assets at beginning of year	$66,460	$50,949	—	—
Actual return on plan assets	13,329	12,975	—	—
Employer contributions	3,005	6,413	14	14

Benefits paid	(3,413)	(3,284)	(14)	(14)
Other expense	(498)	(593)	—	—
Fair value of plan assets at end of year	$78,883	$66,460	—	—


Funded Status at End of Year:
Net accrued benefit cost	($21,586)	($23,801)	($1,886)	($1,634)


Amounts Recognized in the Consolidated
Balance Sheets Consist of:

Current liabilities	($86)	($86)	($41)	($38)
Noncurrent liabilities	(21,500)	(23,715)	(1,845)	(1,596)
Net amount recognized	($21,586)	($23,801)	($1,886)	($1,634)

Net gains or losses recognized in other comprehensive (loss) income for the three years ended December 31 are as follows:


	Pension			Postretirement
	2020	2019	2018	2020	2019	2018
Net (losses) gains	($1,587)	($1,514)	($1,743)	($207)	($285)	$149

In 2020, net losses recognized in other comprehensive income for our pension plan was primarily due to an approximate 80 bps decline in the discount rate ($11.2 million) and unfavorable demographic experience ($0.4 million), partially offset by higher than expected return on plan assets ($9.3 million) and updates to mortality rates ($0.7 million). Net losses recognized in other comprehensive income for our postretirement plan was primarily due to an approximate 74 bps decline in the discount rate ($0.2 million).

Net gains or losses reclassified from other comprehensive income and recognized as a component of pension and postretirement expense for the three years ended December 31 are as follows:


	Pension			Postretirement
	2020	2019	2018	2020	2019	2018
Amortization of losses (gains)	$861	$449	$673	$8	—	$2

Net losses that have not yet been included in pension and postretirement expense for the two years ended December 31, but have been recognized as a component of AOCI are as follows:


	Pension		Postretirement
	2020	2019	2020	2019

Net losses	($25,043)	($24,317)	($491)	($292)

Deferred income tax benefit	1,216	1,216	6	6
AOCI	($23,827)	($23,101)	($485)	($286)

For pension and postretirement plans with accumulated benefit obligations in excess of plan assets, the following table sets forth the projected and accumulated benefit obligations and the fair value of plan assets for the two years ended December 31:


	2020	2019
Projected benefit obligation	$100,469	$90,261
Accumulated benefit obligation	100,469	90,261
Fair value of plan assets	78,883	66,460

The following tables set forth the components of net pension and postretirement benefit cost (credit) that have been recognized during the three years ended December 31:


	Pension			Postretirement
	2020	2019	2018	2020	2019	2018
Components of Net Periodic Benefit Cost (Credit)
Service cost	—	—	—	$6	$6	$7
Interest cost	2,706	3,197	3,021	51	54	38
Expected return on plan assets	(3,504)	(3,107)	(3,934)	—	—	—

Amortization of losses (gains)	861	449	673	8	—	2



Net periodic benefit cost (credit)	$63	$539	($240)	$65	$60	$47

The following table sets forth the principal assumptions inherent in the determination of benefit obligations and net periodic benefit cost of the pension and postretirement benefit plans as of December 31:


	Pension						Postretirement
	2020		2019		2018		2020		2019		2018
Assumptions used to determine benefit obligations at December 31:
Discount rate	2.26	%	3.06	%	4.11	%	2.42	%	3.16	%	4.18	%

Assumptions used to determine net periodic benefit cost for years ended December 31:
Discount rate	3.06	%	4.11	%	3.48	%	3.16	%	4.18	%	3.56	%
Expected long-term return on plan assets	5.72	%	5.72	%	7.17	%	—		—		—

At December 31, 2020, the pension plan’s discount rate was 2.3%, which closely approximates interest rates on high quality, long-term obligations. In 2020, the expected return on plan assets remained flat at 5.7%, which is based on historical and expected long-term rates of return on broad equity and bond indices and consideration of the actual annualized rate of return. We utilize this information in developing assumptions for returns, risks and correlations of asset classes, which are then used to establish the asset allocation ranges.

INVESTMENT OF PLAN ASSETS

Our Pension and Savings Plan Committee and the Audit Committee of the Board of Directors oversee the pension plans’ investment program, which is designed to maximize returns and provide sufficient liquidity to meet plan obligations while maintaining acceptable risk levels. The investment approach emphasizes diversification by allocating the plans’ assets among asset categories and selecting investment managers whose various investment methodologies will be minimally correlative with each other.

In 2020, we transitioned to a liability-driven investment (“LDI”) strategy. An LDI strategy focuses on maintaining a close to fully-funded status over the long-term with minimal funded status risk. This is achieved by investing more of the plan assets in fixed income instruments to more closely match the duration of the plan liability. The investment allocation to fixed income instruments will increase as the plans' funded status increases. Investment target allocation percentages for equity securities can range up to 80 percent.

Our pension plans’ asset allocation (excluding short-term investments) at December 31, 2020 and 2019 are as follows:


	Percentage of Plan Assets
Asset Category	2020		2019
Domestic equity securities	44	%	41	%
International equity securities	30	%	28	%
Domestic fixed income securities	21	%	25	%
International fixed income securities	3	%	4	%
Real estate fund	2	%	2	%
Total	100	%	100	%

Investments within the equity categories may include large capitalization, small capitalization and emerging market securities, while the international fixed income portfolio may include emerging markets debt. Pension assets did not include a direct investment in Rayonier common shares during the years ended December 31, 2020 and 2019.

NET ASSET VALUE MEASUREMENTS

Separate investment accounts are measured using the unit value calculated based on the Net Asset Value (“NAV”) of the underlying assets. The NAV is based on the fair value of the underlying investments held by each fund less liabilities divided by the units outstanding as of the valuation date. These funds are not publicly traded; however, the unit price calculation is based on observable market inputs of the funds’ underlying assets.

The following table sets forth the net asset value of the plan assets as of December 31, 2020 or 2019.


	December 31, 2020	December 31, 2019
Asset Category


Investments at Net Asset Value:
Separate Investment Accounts	$78,883	$66,460
Total Investments at Net Asset Value	$78,883	$66,460

CASH FLOWS

Our expected benefit payments to be made for the next 10 years are as follows:


	Pension Benefits	Postretirement Benefits
2021	$3,774	$41
2022	4,026	45
2023	4,135	48
2024	4,327	52
2025	4,445	55
2026-2030	23,200	328

We have no pension contribution requirements in 2021.

DEFINED CONTRIBUTION PLANS

We provide a defined contribution plan to all of our eligible employees. Upon completion of the merger with Pope Resources, former eligible Pope Resource employees were immediately eligible to participate in the Rayonier 401(k) plan. Pope Resources employees’ year of service were credited to the 401(k) plan for vesting purposes. Company match contributions charged to expense for these plans were $1.1 million, $1.0 million and $0.9 million for the years ended December 31, 2020, 2019 and 2018, respectively. The defined contribution plan includes Rayonier common shares with a fair market value of $8.5 million and $10.6 million at December 31, 2020 and 2019, respectively. As of June 1, 2016, the Rayonier Inc. Common Stock Fund was closed to new contributions. Transfers out of the fund will continue to be permitted, but no new investments or transfers into the fund are allowed.

As discussed above, the defined benefit pension plan is currently frozen. In lieu of the pension plan, employees are eligible to receive an enhanced match contribution. Company enhanced match contributions charged to expense for the years ended December 31, 2020, 2019 and 2018 were $1.0 million, $0.9 million and $0.8 million, respectively.

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

INCENTIVE STOCK PLANS

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

INCENTIVE STOCK PLANS

The Rayonier Incentive Stock Plan (the “Stock Plan”) provides up to 15.8 million shares to be granted for incentive stock options, non-qualified stock options, stock appreciation rights, performance shares, restricted stock and restricted stock units, subject to certain limitations. At December 31, 2020, a total of 2.8 million shares were available for future grants under the Stock Plan. Under the Stock Plan, shares available for issuance are reduced by 1 share for each option or right granted and by 2.27 shares for each performance share, restricted share or restricted stock unit granted. We issue new shares of stock upon the exercise of stock options, the granting of restricted stock, and the vesting of performance shares and restricted stock units.

A summary of our stock-based compensation cost is presented below:


	2020	2019	2018
Selling and general expenses	$6,839	$6,416	$5,623
Cost of sales	693	378	704
Timber and Timberlands, net (a)	170	110	101
Other operating expense, net (b)	324	—	—
Total stock-based compensation	$8,026	$6,904	$6,428

Tax benefit recognized related to stock-based compensation expense (c)	$421	$362	$338

(a)Represents amounts capitalized as part of the overhead allocation of timber-related costs.

(b)Represents expense associated with the acceleration of share-based compensation on Pope replacement awards related to qualifying terminations. See Note 21 - C harges f or Integration and Restructuring for additional details.

(c)A valuation allowance is recorded against the tax benefit recognized as we do not expect to be able to realize the benefit in the future.

FAIR VALUE CALCULATIONS BY AWARD

RESTRICTED STOCK

Restricted stock granted to employees under the Stock Plan generally vests in fourths on the first, second, third and fourth anniversary of the grant date. Restricted stock granted to senior management generally vests in thirds on the third, fourth, and fifth anniversary of the grant date. Periodically, other one-time restricted stock grants are issued to employees for special purposes, such as new hire, promotion or retention, and can vest ratably over, or upon completion of, a defined period of time. Generally, holders of restricted stock receive dividend equivalent payments on outstanding restricted shares. Restricted stock granted to members of the board of directors generally vests immediately upon issuance and is subject to certain holding requirements. The fair value of each share granted is equal to the share price of the the Company’s stock on the date of grant. We have elected to value each grant in total and recognize the expense on a straight-line basis from the grant date of the award to the latest vesting date. As permitted, we do not estimate a forfeiture rate for non-vested shares. Accordingly, unexpected forfeitures will lower stock-based compensation during the period in which they occur.

REPLACEMENT RESTRICTED STOCK AWARDS FROM THE MERGERS

As a result of the Mergers, Rayonier issued 69,176 shares of restricted stock awards (“replacement awards”) in connection with unvested Pope Resources restricted units. Eligible outstanding Pope Resources restricted units were canceled and exchanged for replacement awards, pursuant to an exchange ratio in the merger agreement designed to maintain the intrinsic value of the awards immediately prior to the exchange.

In accordance with ASC 805, these awards are considered to be replacement awards. Exchanges of share-based payment awards in conjunction with a business combination are modifications in accordance with ASC 718, Compensation — Stock Compensation (“ASC 718”). As a result, the portion of the fair-value of replacement awards attributable to pre-merger services were included in measuring the consideration transferred in the business combination. The fair value of the replacement awards was estimated to be approximately $1.7 million of which

$0.2 million was attributable to pre-merger services. See Note 2 — Merger with Pope Resources for additional information.

REPLACEMENT AWARD EXPENSE

The replacement awards issued have similar vesting provisions as the terms of existing Rayonier restricted stock. Expense for the replacement awards that were not fully vested prior to the date of the merger will continue to be recognized over a weighted average remaining service period of approximately 21 months unless a qualifying termination occurs.

A qualifying termination of an awardee will result in the acceleration of vesting and expense recognition in the period that the qualifying termination occurs. Qualifying terminations during the year ended December 31, 2020 resulted in the accelerated vesting of 15,049 of the replacement awards and recognition of approximately $0.3 million of expense. This accelerated vesting expense is included in merger-related integration costs as described in Note 21 — Charges for Integration and Restructuring.

As of December 31, 2020, there was $2.0 million of unrecognized compensation cost attributable to our restricted stock. We expect to recognize this cost over a weighted average period of 1.7 years.

A summary of our restricted stock is presented below:


	2020	2019	2018
Restricted shares granted (a)	100,452	24,592	87,924
Weighted average price of restricted shares granted	$23.15	$30.90	$35.44
Intrinsic value of restricted stock outstanding (b)	4,666	5,540	8,792
Grant date fair value of restricted stock vested	2,755	5,339	1,582
Cash used to purchase common shares from current and former employees to pay withholding tax requirements on restricted shares vested	566	1,610	334

(a)The year ended December 31, 2020 includes 69,176 replacement awards issued as a result of the merger with Pope Resources.

(b)Intrinsic value of restricted stock outstanding is based on the market price of the Company’s stock at December 31, 2020.


	2020
	Number of Shares	Weighted Average Grant Date Fair Value
Non-vested Restricted Shares at January 1,	169,114	$29.45
Granted (a)	100,452	23.15
Vested (b)	(109,764)	25.10
Cancelled	(982)	30.46
Non-vested Restricted Shares at December 31,	158,820	$28.47

(a)The year ended December 31, 2020 includes 69,176 replacement awards issued as a result of the merger with Pope Resources.

(b)The year ended December 31, 2020 includes 15,049 replacement awards vested as a result of acceleration due to qualifying terminations.

RESTRICTED STOCK UNITS

In April 2019, we began granting restricted stock units instead of restricted stock to employees. All attributes of our restricted stock described herein, including vesting characteristics, dividend payments, fair value measurement and expense recognition, apply equally to restricted stock units granted under the Stock Plan.

As of December 31, 2020, there was $5.2 million of unrecognized compensation cost attributable to our restricted stock units. We expect to recognize this cost over a weighted average period of 3.5 years.

A summary of our restricted stock units is presented below:


	2020	2019	2018
Restricted stock units granted	171,409	103,634	—
Weighted average price of restricted stock units granted	$22.58	$31.51	—
Intrinsic value of restricted stock units outstanding (a)	7,801	3,351	—
Grant date fair value of restricted stock units vested	$218	$2	—
Cash used to purchase common shares from current and former employees to pay withholding tax requirements on restricted stock units vested	$47	$1	—

(a)Intrinsic value of restricted stock units outstanding is based on the market price of the Company’s stock at December 31, 2020.


	2020
	Number of Shares	Weighted Average Grant Date Fair Value
Non-vested Restricted Stock Units at January 1,	102,297	$31.50
Granted	171,409	22.58
Vested	(6,868)	31.71
Cancelled	(1,316)	28.35
Non-vested Restricted Stock Units at December 31,	265,522	$25.75

PERFORMANCE SHARE UNITS

Our performance share units generally vest upon completion of a three-year period. The number of shares, if any, that are ultimately awarded is contingent upon our total shareholder return versus selected peer group companies. The performance share payout is based on a market condition, and as such, the awards are valued using a Monte Carlo simulation model. The model generates the fair value of the award at the grant date, which is then recognized as expense on a straight-line basis over the vesting period. Additionally, we do not estimate a forfeiture rate for non-vested units. As such, unexpected forfeitures will lower stock-based compensation during the period in which they occur.

The Stock Plan allows for the cash settlement of the required withholding tax on performance share unit awards. As of December 31, 2020, there was $6.3 million of unrecognized compensation cost related to our performance share unit awards, which is attributable to awards granted in 2018, 2019 and 2020. This cost is expected to be recognized over a weighted average period of 1.9 years.

A summary of our performance share units is presented below:


	2020	2019	2018
Common shares reserved for performance shares granted during year	361,870	232,684	213,154
Weighted average fair value of performance share units granted	$29.59	$35.99	$40.27
Intrinsic value of outstanding performance share units (a)	11,711	10,758	9,229
Fair value of performance shares vested	3,522	6,387	5,670
Cash used to purchase common shares from current and former employees to pay withholding tax requirements on performance shares vested	992	2,639	2,651

(a)Intrinsic value of outstanding performance share units is based on the market price of the Company's stock at December 31, 2020.


	2020
	Number of Units	Weighted Average Grant Date Fair Value
Outstanding Performance Share units at January 1,	328,386	$36.06
Granted	180,935	29.59
Units Distributed	(109,470)	32.17
Other Cancellations/Adjustments	(1,244)	38.04
Outstanding Performance Share units at December 31,	398,607	$34.17

Expected volatility was estimated using daily returns on the Company’s common shares for the three-year period ending on the grant date. The risk-free rate was based on the 3-year U.S. treasury rate on the date of the award. The dividend yield was not used to calculate fair value as awards granted receive dividend equivalents. The following table provides an overview of the assumptions used in calculating the fair value of the awards granted for the three years ended December 31, 2020:


	2020		2019		2018
Expected volatility	32.6	%	18.4	%	20.8	%
Risk-free rate	0.3	%	2.3	%	2.4	%

NON-QUALIFIED EMPLOYEE STOCK OPTIONS

The exercise price of each non-qualified stock option granted under the Stock Plan is equal to the closing market price of the Company’s stock on the grant date. Under the Stock Plan, the maximum term is 10 years from the grant date.

A summary of the status of our stock options as of and for the year ended December 31, 2020 is presented below:


	2020
	Number of Shares	Weighted Average Exercise Price (per common share)	Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Options outstanding at January 1,	414,402	$33.30
Granted	—	—
Exercised	(50,228)	27.23
Cancelled or expired	(23,189)	35.08
Options outstanding at December 31,	340,985	34.07	2.2	$5
Options exercisable at December 31,	340,985	$34.07	2.2	$5

A summary of additional information pertaining to our stock options is presented below:


	2020	2019	2018
Intrinsic value of options exercised (a)	$108	$475	$2,618

Cash received from exercise of options	1,368	1,260	8,591

(a)Intrinsic value of options exercised is the amount by which the fair value of the stock on the exercise date exceeded the exercise price of the option.

As of December 31, 2020, compensation cost related to stock options was fully recognized.

OTHER OPERATING (EXPENSE) INCOME, NET

12 Months Ended

Dec. 31, 2020

Other Income and Expenses [Abstract]

OTHER OPERATING (EXPENSE) INCOME, NET

The following table provides the composition of Other operating (expense) income, net for the three years ended December 31:


	2020	2019	2018
(Loss) gain on foreign currency remeasurement, net of cash flow hedges	($3,503)	($3,077)	$370
Gain on sale or disposal of property plant & equipment	121	56	7



Income from sale of unused Internet Protocol addresses	—	—	646
Log trading marketing fees	56	314	286



Cost related to the merger with Pope Resources (a)	(17,166)	—	—
Equity loss related to Ferncliff Investors joint venture (b)	(721)	—	—
Miscellaneous expense, net	(472)	(1,826)	(169)
Total	($21,685)	($4,533)	$1,140

(a)Includes legal, accounting, due diligence, consulting and other costs related to the merger with Pope Resources. See Note 2 - Merger with Pope Resources and Note 21 - Charges for Integration and Restructuring for additional information.

(b)See N ote 6 - Noncontrolling Interests and Note 27 - Variable Interest E ntities for additional information on Ferncliff Investors.

CHARGES FOR INTEGRATION AND RESTRUCTURING

12 Months Ended

Dec. 31, 2020

Restructuring and Related Activities [Abstract]

CHARGES FOR INTEGRATION AND RESTRUCTURING

During 2020, we have incurred and accrued for termination benefits (primarily severance) and accelerated share-based payment costs based upon actual and expected qualifying terminations of certain employees as a result of restructuring decisions made concurrent with and subsequent to the Mergers. We have also incurred non-recurring professional services costs for investment banking, legal, consulting, accounting and certain other fees directly attributable to the Mergers.

A summary of the charges for integration and restructuring related to the Mergers is presented below:


			2020

Termination benefits			$625
Acceleration of share-based compensation related to qualifying terminations (Note 19)			324
Professional services			14,314
Other integration and restructuring costs			1,903
Total integration and restructuring charges related to the Mergers			$17,166

Changes in accrued severance related to restructuring during 2020 were as follows:


															2020
Accrued severance as of January 1, 2020															—



Charges															625
Payments															(513)
Accrued severance as of December 31, 2020															$112

Accrued severance is recorded within “Accrued Payroll and Benefits” in our Consolidated Balance Sheets. The accrued severance balance as of December 31, 2020 is expected to be paid within one year.

INVENTORY

12 Months Ended

Dec. 31, 2020

Inventory Disclosure [Abstract]

INVENTORY

As of December 31, 2020 and 2019, our inventory was solely comprised of finished goods, as follows:


	2020	2019
Finished goods inventory
Real estate inventory (a)	$6,756	$12,663
Log inventory	3,838	1,855
Total inventory	$10,594	$14,518

(a)Represents the cost of HBU real estate (including capitalized development investments) under contract to be sold. See Note 9 — Higher and Better Use Timberlands and Real Estate Development Investments for additional information.

RESTRICTED CASH

12 Months Ended

Dec. 31, 2020

Restricted Cash and Investments [Abstract]

RESTRICTED CASH

In order to qualify for like-kind exchange (“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 that the LKE purchases are not completed, the proceeds are returned to us after 180 days and reclassified as available cash. As of December 31, 2020 and 2019, we had $3.0 million and $1.2 million, respectively, of proceeds from real estate sales classified as restricted cash which were deposited with an LKE intermediary as well as cash held in escrow for real estate development obligations.

The following table contains the amount of restricted cash recorded in the Consolidated Balance Sheets and Consolidated Statements of Cash Flows for the years ended December 31:


	2020	2019
Restricted cash deposited with LKE intermediary	—	$758
Restricted cash held in escrow	2,975	475
Total restricted cash shown in the Consolidated Balance Sheets	2,975	1,233
Cash and cash equivalents	84,507	68,735
Total cash, cash equivalents and restricted cash shown in the Consolidated Statements of Cash Flows	$87,482	$69,968

OTHER ASSETS

12 Months Ended

Dec. 31, 2020

Other Assets [Abstract]

OTHER ASSETS

Included in Other Assets are derivatives, goodwill in the New Zealand subsidiary, long-term prepaid roads, patronage equity, marketable equity securities and other deferred expenses including deferred financing costs related to revolving debt and capitalized software costs.

See Note 16 — Derivative Financial Instruments and Hedging Activities for further information on derivatives including their classification on the Consolidated Balance Sheets.

Changes in goodwill for the years ended December 31, 2020 and 2019 were:


	2020	2019
Balance, January 1 (net of $0 of accumulated impairment)	$8,611	$8,307
Changes to carrying amount
Acquisitions	—	—
Impairment	—	—
Foreign currency adjustment	332	304
Balance, December 31 (net of $0 of accumulated impairment)	$8,943	$8,611

See Note 1 — Summary of Significant Accounting Policies for additional information on goodwill.

As of December 31, 2020 and 2019, Rayonier’s prepaid logging and secondary roads follows:


	2020	2019
Long-term and prepaid and secondary roads
Pacific Northwest long-term prepaid roads	$4,087	$4,198
New Zealand long-term secondary roads	5,767	4,265
Total long-term prepaid and secondary roads	$9,854	$8,463

See Note 1 — Summary of Significant Accounting Policies for additional information on prepaid logging roads.

As of December 31, 2020 and 2019, Rayonier’s patronage equity follows:


	2020	2019
Patronage Equity	$6,685	$5,217

See Note 1 — Summary of Significant Accounting Policies for additional information on patronage equity.

As of December 31, 2020 and 2019, Rayonier’s deferred financing costs related to revolving debt follows:


	2020	2019
Deferred financing costs related to revolving debt	$1,040	$102

See Note 1 — Summary of Significant Accounting Policies for additional information on deferred financing costs related to revolving debt.

As of December 31, 2020 and 2019, Rayonier’s capitalized software costs follows:


	2020	2019
Capitalized software costs	$3,651	$3,605

See Note 1 — Summary of Significant Accounting Policies for additional information on capitalized software costs.

As of December 31, 2020 and 2019, Rayonier’s investments in marketable equity securities follows:


	2020	2019
Investments in marketable equity securities	—	$10,582

See Note 1 — Summary of Significant Accounting Policies for additional information on investments in marketable equity securities. As of December 31, 2019, our investments in marketable equity securities consisted entirely of 114,400 limited partnership units of Pope Resources, originally purchased in an open-market transaction at $65.90 per unit. These units were included as consideration transferred in the merger with Pope Resources. See Note 2 — Merger with Pope Resources for additional information.

ASSETS HELD FOR SALE	12 Months Ended
ASSETS HELD FOR SALE	Dec. 31, 2020
Discontinued Operations and Disposal Groups [Abstract]
ASSETS HELD FOR SALE	ASSETS HELD FOR SALE Assets held for sale is composed of properties not included in inventory under contract and expected to be sold within the next 12 months that also meet the other relevant held-for-sale criteria in accordance with ASC 360-10-45-9. As of December 31, 2020, the basis in properties meeting this classification was $3.4 million. Since the basis in these properties was less than the fair value, including costs to sell, no impairment was recognized. As of December 31, 2019, there were no properties classified as assets held for sale.

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

12 Months Ended

Dec. 31, 2020

Equity [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table summarizes the changes in AOCI by component for the years ended December 31, 2020 and 2019. All amounts are presented net of tax effect and exclude portions attributable to noncontrolling interest.


	Foreign currency translation gains/(losses)	Net investment hedges of New Zealand subsidiary	Cash flow hedges		Employee benefit plans		Total Rayonier, L.P.	Allocation of Operating Partnership	Total Rayonier Inc.
Balance as of December 31, 2018	($1,010)	$1,321	$21,965		($22,037)		$239	—	$239
Other comprehensive (loss) income before reclassifications	784	—	(29,251)		(1,799)		(30,266)	—	(30,266)
Amounts reclassified from accumulated other comprehensive (loss) income	—	—	(1,624)		449	(b)	(1,175)	—	(1,175)
Net other comprehensive (loss) income	784	—	(30,875)		(1,350)		(31,441)	—	(31,441)

Balance as of December 31, 2019	($226)	$1,321	($8,910)		($23,387)		($31,202)	—	($31,202)
Other comprehensive (loss) income before reclassifications	22,928	—	(71,644)	(a)	(1,794)		(50,510)	—	(50,510)
Amounts reclassified from accumulated other comprehensive (loss) income	—	—	9,498		869	(b)	10,367	(2,540)	7,827
Net other comprehensive (loss) income	22,928	—	(62,146)		(925)		(40,143)	(2,540)	(42,683)
Balance as of December 31, 2020	$22,702	$1,321	($71,056)		($24,312)		($71,345)	($2,540)	($73,885)

(a)Includes $76.6 million of other comprehensive loss related to interest rate swaps. See Note 16 — Derivative Financial Instruments and Hedging Activities for additional information.

(b)This component of other comprehensive (loss) income is included in the computation of net periodic pension cost. See Note 18 — Employee Benefit Plans for additional information.

The following table presents details of the amounts reclassified in their entirety from AOCI for the years ended December 31, 2020 and 2019:


Details about accumulated other comprehensive (loss) income components	Amount reclassified from accumulated other comprehensive (loss) income		Affected line item in the income statement
	2020	2019
Realized (gain) loss on foreign currency exchange contracts	($2,324)	$1,246	Other operating income, net
Realized (gain) loss on foreign currency option contracts	30	(33)	Other operating income, net
Noncontrolling interest	528	(279)	Comprehensive income (loss) attributable to noncontrolling interest
Realized loss (gain) on interest rate contracts	10,769	(2,296)	Interest expense
Income tax expense (benefit) from foreign currency contracts	495	(262)	Income tax expense (Note 11)
Net loss (gain) on cash flow hedges reclassified from accumulated other comprehensive income	$9,498	($1,624)

VARIABLE INTEREST ENTITIES

12 Months Ended

Dec. 31, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

VARIABLE INTEREST ENTITIES

ORM Timber Fund II, Inc. (Fund II), ORM Timber Fund III LLC (Fund III), and ORM Timber Fund IV LLC. (Fund IV) (Collectively, the “Funds”)

In the Mergers, we became manager of three private equity timber funds, Fund II, Fund III, and Fund IV, and obtained ownership interests in the Funds of 20%, 5%, and 15%, respectively. We determined, based upon an analysis under the variable interest entity guidance, that we have the power to direct the activities that most significantly impact the Funds’ economic success. Therefore, we are considered the primary beneficiary and are required under ASC 810 — Consolidation to consolidate the Funds. For further information on the Funds, see Note 6 — Noncontrolling Interests.

The assets, liabilities and equity of the Funds as of December 31, 2020, were as follows:


Timber Funds			2020
Assets:
Cash and cash equivalents			$4,053
Accounts receivable			3,620
Prepaid expenses			132
Other current assets			41
Total current assets			7,846
Timber and timberlands, net of depletion and amortization			410,884

Total assets			$418,730
Liabilities and Equity:
Accounts payable			$939
Intercompany payable (a)			1,319

Accrued taxes			314
Accrued interest			513
Deferred revenue			323
Other current liabilities			732
Total current liabilities			4,140
Long-term debt, net of deferred financing costs			60,179
Funds’ equity			354,411
Total liabilities and equity			$418,730

(a)Includes management fees and other expenses payable to the Operating Partnership. These amounts are eliminated in the Consolidated Balance Sheets.

Ferncliff Investors

We also acquired in the Mergers an ownership interest in a real estate joint venture entity. We determined, based upon an analysis under the variable interest entity guidance, that we have the power to direct the activities that most significantly impact the joint venture investment’s economic success. Therefore, we are considered the primary beneficiary and are required under ASC 810 — Consolidation to consolidate Ferncliff Investors. For further information on Ferncliff Investors, see Note 6 — Noncontrolling Interests.

The assets, liabilities and equity of Ferncliff Investors as of December 31, 2020, were as follows:


Ferncliff Investors			2020
Assets:
Cash and cash equivalents			$4,503
Intercompany receivable			111

Total current assets			4,614
Investment in real estate joint venture entity			2,112
Advances to real estate joint venture entity			1,000
Total assets			$7,726
Liabilities and equity:





Other accrued and deferred liabilities			$3,447
Total current liabilities			3,447

Ferncliff Investors’ equity			4,279
Total liabilities and equity			$7,726

RELATED PARTY

12 Months Ended

Dec. 31, 2020

RELATED PARTY

In January 2020, we entered into an agreement to sell developed lots to Mattamy Jacksonville LLC, a wholly owned subsidiary of Mattamy Homes, for an aggregate base purchase price of $4.45 million (subject to multiple takedowns over a 2 year period), plus additional consideration as to each lot to the extent the ultimate sales price of each finished home exceeds agreed price thresholds (the “Mattamy Contract”). The Mattamy contract also includes marketing fee revenue based on 1.25% of the sales price of each finished home.

In September 2020, Keith Bass, a member of our Board of Directors, was named the Chief Executive Officer of Mattamy Homes US. Following this development, the Mattamy Contract and the ongoing obligations therein, were reviewed by the Nominating and Corporate Governance Committee in accordance with established policies and procedures regarding the authorization and approval of transactions with related parties.

The following table demonstrates the impact, gross of tax, of our related party transactions on the Consolidated Statements of Income and Comprehensive Income for the three years ended December 31:


Related Party Transaction	Location on Statement of Income and Comprehensive Income	2020	2019	2018
Mattamy Contract	Sales	$1,354	—	—

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 31, 2020

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS

SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS

Years Ended December 31, 2020, 2019, and 2018

(In Thousands)


Description	Balance at Beginning of Year	Additions Charged to Cost and Expenses		Deductions	Balance at End of Year
Allowance for doubtful accounts:
Year ended December 31, 2020	$24	$1		—	$25
Year ended December 31, 2019	8	16		—	24
Year ended December 31, 2018	23	—		(15)	8

Deferred tax asset valuation allowance:
Year ended December 31, 2020	$39,320	$6,695	(a)	—	$46,015
Year ended December 31, 2019	38,839	481	(a)	—	39,320
Year ended December 31, 2018	34,889	3,950	(a)	—	38,839

(a)The 2020, 2019 and 2018 increase is comprised of valuation allowance against the TRS deferred tax assets.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 31, 2020

Accounting Policies [Abstract]

Basis of Presentation and Principles of Consolidation

BASIS OF PRESENTATION AND PRINCIPLES OF CONSOLIDATION


	Year Ended December 31,
		2020	2019	2018

Operating income		—	—	—
Net income attributable to Rayonier, L.P. (a)		($14,384)	($14,384)	($14,384)
Basic earnings per unit attributable to Rayonier, L.P.		($0.11)	($0.11)	($0.11)
Diluted earnings per unit attributable to Rayonier, L.P.		($0.11)	($0.11)	($0.11)

(a) The effect of the change in net income attributable to Rayonier, L.P. is due to the interest expense and guarantee fees associated with the 2022 Notes.

MERGER WITH POPE RESOURCES

Reclassifications

RECLASSIFICATIONS Effective April 1, 2020, we changed the composition of our Rural and Timberland & Non-Strategic Real Estate sales categories to better align with the way management internally evaluates real estate sales. The Rural category now includes all real estate sales (excluding development sales) representing a demonstrable premium above timberland value. The Timberland & Non-Strategic category now includes all real estate sales representing little to no premium to timberland value. This category consists primarily of sales of property that management views as non-strategic to our long-term portfolio as well as sales of property for capital allocation purposes that do not fit the definition of a Large Disposition. All prior period amounts have been reclassified to reflect the new composition of these two sales categories. The Improved Development, Unimproved Development and Large Disposition categories remain unchanged, and this reclassification had no impact on overall segment results.

Use of Estimates

USE OF ESTIMATES

Cash and Cash Equivalents

CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist of cash on hand and other highly liquid investments with original maturities of three months or less.

Accounts Receivable

ACCOUNTS RECEIVABLE

Accounts receivable are primarily amounts due to us for the sale of timber and are presented net of an allowance for doubtful accounts.

Inventory

INVENTORY

Prepaid Logging Roads

PREPAID LOGGING ROADS Costs for roads built in the Pacific Northwest and New Zealand to access particular tracts to be harvested in the upcoming 24 months to 60 months are recorded as prepaid logging roads. We charge such costs to expense as timber is harvested using an amortization rate determined annually as the total cost of prepaid roads divided by the estimated tons of timber to be accessed by those roads. The prepaid balance is classified as short-term or long-term based on the upcoming harvest schedule.

Patronage Dividends

PATRONAGE DIVIDENDS

Deferred Financing Costs

DEFERRED FINANCING COSTS Deferred financing costs related to revolving debt are capitalized and amortized to interest expense over the term of the revolving debt using a method that approximates the effective interest method.

Capitalized Software Costs

CAPITALIZED SOFTWARE COSTS

Software costs are capitalized and amortized over a period not exceeding five years using the straight-line method.

Timber and Timberlands

TIMBER AND TIMBERLANDS

Higher and Better Use Timberlands and Real Estate Development Investments

HIGHER AND BETTER USE TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS

REAL ESTATE DEVELOPMENT INVESTMENTS

IMPAIRMENT OF HBU TIMBERLANDS AND REAL ESTATE DEVELOPMENT INVESTMENTS

Property, Plant, Equipment and Depreciation

PROPERTY, PLANT, EQUIPMENT AND DEPRECIATION

Leases and Right-of-Use Assets Impairment

LEASES

RIGHT-OF-USE ASSETS IMPAIRMENT

Investments

INVESTMENTS

Fair Value Measurements