What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2023-08-04 compared with 2023-05-05 · 334 added, 137 removed, 998 unchanged (32% of the section changed)

6 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2023 2022 2023 2022

SALES ( NOTE 3 )

3 unchanged sentences

Selling and general expenses ( 18,952 ) ( 17,356 ) ( 35,729 ) ( 32,116 )

Other operating expense, net ( Note 14 )

Other operating (expense) income, net ( Note 14 )

( 1,401 ) 801 ( 3,917 ) ( 182 )

1 unchanged sentence

OPERATING INCOME 20,102 35,468 30,725 80,786

Interest expense ( 11,700 ) ( 8,337 )

Interest expense, net ( 12,457 ) ( 9,083 ) ( 24,158 ) ( 17,420 )

Interest and other miscellaneous income (expense), net 11,644 206 21,197 ( 262 )

6 unchanged sentences

NET INCOME ATTRIBUTABLE TO RAYONIER INC.

OTHER COMPREHENSIVE (LOSS) INCOME

19,023 24,104 27,323 53,422

OTHER COMPREHENSIVE INCOME (LOSS)

Foreign currency translation adjustment, net of income tax effect of $ 0 , $ 0 , $ 0 and $ 0

3 unchanged sentences

Amortization of pension and postretirement plans, net of income tax expense of $ 0 , $ 0 , $ 0 and $ 0

Total other comprehensive (loss) income ( 16,051 ) 47,073

COMPREHENSIVE (LOSS) INCOME ( 8,614 ) 78,071

Comprehensive loss (income) attributable to noncontrolling interests in the operating partnership 156 ( 1,686 )

Comprehensive loss (income) attributable to noncontrolling interests in consolidated affiliates 1,032 ( 2,408 )

COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER INC.

Total other comprehensive income (loss) 2,741 ( 30,342 ) ( 13,312 ) 16,731

COMPREHENSIVE INCOME (LOSS) 21,837 ( 5,055 ) 13,222 73,017

Comprehensive (income) loss attributable to noncontrolling interests in the operating partnership ( 375 ) 29 ( 220 ) ( 1,657 )

Comprehensive loss attributable to noncontrolling interests in consolidated affiliates 989 3,767 2,023 1,358

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO RAYONIER INC.

$ 22,451 ($ 1,259 ) $ 15,025 $ 72,718

9 unchanged sentences

(Dollars in thousands)

March 31, 2023 December 31, 2022

June 30, 2023 December 31, 2022

CURRENT ASSETS

Cash and cash equivalents $ 88,404 $ 114,255

Accounts receivable, less allowance for doubtful accounts of $ 73 and $ 74

Trade receivables, less allowance for doubtful accounts of $ 67 and $ 74

31,515 27,837

Other receivables 18,896 14,701

Inventory ( Note 13 )

74 unchanged sentences

Cash flow hedges — — — ( 12,504 ) 185 ( 12,319 )

Allocation of other comprehensive income to noncontrolling interests in the operating partnership — — — 1,110 — 1,110

Allocation of other comprehensive loss to noncontrolling interests in the operating partnership — — — 1,110 — 1,110

Balance, March 31, 2023 148,012,979 $ 1,489,274 $ 330,389 $ 20,868 $ 14,284 $ 1,854,815

Net income — — 19,341 — ( 245 ) 19,096

Net income attributable to noncontrolling interests in the operating partnership — — ( 318 ) — — ( 318 )

Dividends ($ 0.285 per share) (a)

— — ( 42,279 ) — — ( 42,279 )

Costs associated with the “at-the-market” (ATM) equity offering program — ( 71 ) — — — ( 71 )

Issuance of shares under incentive stock plans 372,149 — — — — —

Stock-based compensation — 4,336 — — — 4,336

Repurchase of common shares ( 126,788 ) ( 4,147 ) — — — ( 4,147 )

Adjustment of noncontrolling interests in the operating partnership — — 4,296 — — 4,296

Conversion of units into common shares 10,103 304 — — — 304

Amortization of pension and postretirement plan liabilities — — — 2 — 2

Foreign currency translation adjustment — — — ( 8,790 ) ( 413 ) ( 9,203 )

Cash flow hedges — — — 12,273 ( 331 ) 11,942

Allocation of other comprehensive income to noncontrolling interests in the operating partnership — — — ( 58 ) — ( 58 )

Balance, June 30, 2023 148,268,443 $ 1,489,696 $ 311,429 $ 24,295 $ 13,295 $ 1,838,715

(a) For information regarding distributions to noncontrolling interests in the operating partnership, see the Rayonier Inc.

26 unchanged sentences

Balance, March 31, 2022 146,107,688 $ 1,421,946 $ 389,077 $ 25,973 $ 44,643 $ 1,881,639

Net income — — 24,650 — 637 25,287

Net income attributable to noncontrolling interests in the operating partnership — — ( 546 ) — — ( 546 )

Dividends ($ 0.285 per share) (a)

— — ( 42,098 ) — — ( 42,098 )

Costs associated with the “at-the-market” (ATM) equity offering program — ( 63 ) — — — ( 63 )

Issuance of shares under incentive stock plans 304,887 1,983 — — — 1,983

Stock-based compensation — 4,412 — — — 4,412

Repurchase of common shares ( 91,820 ) ( 3,991 ) — — — ( 3,991 )

Adjustment of noncontrolling interests in the operating partnership — — 11,412 — — 11,412

Conversion of units into common shares 977 42 — — — 42

Amortization of pension and postretirement plan liabilities — — — 188 — 188

Foreign currency translation adjustment — — — ( 34,373 ) ( 1,912 ) ( 36,285 )

Cash flow hedges — — — 8,247 ( 2,492 ) 5,755

Allocation of other comprehensive loss to noncontrolling interests in the operating partnership — — — 575 — 575

Noncontrolling interests in consolidated affiliates redemption of shares — — — — ( 27,860 ) ( 27,860 )

Balance, June 30, 2022 146,321,732 $ 1,424,329 $ 382,495 $ 610 $ 13,016 $ 1,820,450

(a) For information regarding distributions to noncontrolling interests in the operating partnership, see the Rayonier Inc.

5 unchanged sentences

(Dollars in thousands)

Three Months Ended March 31,

Six Months Ended June 30,

OPERATING ACTIVITIES

6 unchanged sentences

Amortization of losses from pension and postretirement plans 3 376

Timber write-offs due to casualty event 2,302 —

Timber write-off resulting from a casualty event 2,302 —

Other ( 541 ) ( 4,206 )

26 unchanged sentences

Balance, end of period $ 93,366 $ 296,073

Three Months Ended March 31,

Six Months Ended June 30,

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

4 unchanged sentences

Capital assets purchased on account 5,303 4,882

(a) Interest paid is presented net of patronage paymen ts receive d of $ 6.1 million a n d $ 5.5 million for the three months ended March 31, 2023 and March 31, 2022, respectively.

Non-cash financing activity:

Noncontrolling interests in consolidated affiliates redemption of shares (c) — 27,860

(a) Interest paid is presented net of patronage paymen ts receive d of $ 6.2 million a n d $ 6.0 million for the six months ended June 30, 2023 and June 30, 2022, respectively.

For additional information on patronage payments, see Note 7 — Debt in the 2022 Form 10-K.

(b) Income taxes paid in 2022 were elevated due to timing of required tax payments for the New Zealand subsidiary following a full utilization of its net operating losses.

(c) In the second quarter of 2022, the New Zealand subsidiary made a capital distribution in order to redeem certain equity interests, resulting in the recording of a loan payable by the New Zealand subsidiary in the amount of $ 27.9 million.

See Notes to Consolidated Financial Statements.

5 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2023 2022 2023 2022

SALES ( NOTE 3 )

3 unchanged sentences

Selling and general expenses ( 18,952 ) ( 17,356 ) ( 35,729 ) ( 32,116 )

Other operating expense, net ( Note 14 )

Other operating (expense) income, net ( Note 14 )

( 1,401 ) 801 ( 3,917 ) ( 182 )

14 unchanged sentences

Net income attributable to unitholders 19,341 24,650 27,815 54,636

OTHER COMPREHENSIVE (LOSS) INCOME

OTHER COMPREHENSIVE INCOME (LOSS)

Foreign currency translation adjustment, net of income tax effect of $ 0 , $ 0 , $ 0 and $ 0

3 unchanged sentences

Amortization of pension and postretirement plans, net of income tax expense of $ 0 , $ 0 , $ 0 and $ 0

Total other comprehensive (loss) income ( 16,051 ) 47,073

COMPREHENSIVE (LOSS) INCOME ( 8,614 ) 78,071

Comprehensive loss (income) attributable to noncontrolling interests in consolidated affiliates 1,032 ( 2,408 )

COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO RAYONIER, L.P.

Total other comprehensive income (loss) 2,741 ( 30,342 ) ( 13,312 ) 16,731

COMPREHENSIVE INCOME (LOSS) 21,837 ( 5,055 ) 13,222 73,017

Comprehensive loss attributable to noncontrolling interests in consolidated affiliates 989 3,767 2,023 1,358

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO RAYONIER, L.P.

UNITHOLDERS $ 22,826 ($ 1,288 ) $ 15,245 $ 74,375

9 unchanged sentences

(Dollars in thousands)

March 31, 2023 December 31, 2022

June 30, 2023 December 31, 2022

CURRENT ASSETS

Cash and cash equivalents $ 88,404 $ 114,255

Accounts receivable, less allowance for doubtful accounts of $ 73 and $ 74

Trade receivables, less allowance for doubtful accounts of $ 67 and $ 74

31,515 27,837

Other receivables 18,896 14,701

Inventory ( Note 13 )

69 unchanged sentences

Balance, March 31, 2023 $ 18,163 $ 1,798,174 $ 24,194 $ 14,284 $ 1,854,815

Net income 193 19,148 — ( 245 ) 19,096

Distributions on units ($ 0.285 per unit)

( 429 ) ( 42,555 ) — — ( 42,984 )

Costs associated with the “at-the-market” (ATM) equity offering program ( 1 ) ( 70 ) — — ( 71 )

Stock-based compensation 43 4,293 — — 4,336

Repurchase of units ( 41 ) ( 4,106 ) — — ( 4,147 )

Adjustment of Redeemable Operating Partnership Units 46 4,579 — — 4,625

Conversion of units into common shares 3 301 — — 304

Amortization of pension and postretirement plan liabilities — — 2 — 2

Foreign currency translation adjustment — — ( 8,790 ) ( 413 ) ( 9,203 )

Cash flow hedges — — 12,273 ( 331 ) 11,942

Balance, June 30, 2023 $ 17,977 $ 1,779,764 $ 27,679 $ 13,295 $ 1,838,715

Units Accumulated

18 unchanged sentences

Balance, March 31, 2022 $ 18,068 $ 1,788,713 $ 30,215 $ 44,643 $ 1,881,639

Net income 246 24,404 — 637 25,287

Distributions on units ($ 0.285 per unit)

( 430 ) ( 42,612 ) — — ( 43,042 )

Costs associated with the “at-the-market” (ATM) equity offering program ( 1 ) ( 62 ) — — ( 63 )

Issuance of units under incentive stock plans 20 1,963 — — 1,983

Stock-based compensation 44 4,368 — — 4,412

Repurchase of units ( 40 ) ( 3,951 ) — — ( 3,991 )

Adjustment of Redeemable Operating Partnership Units 124 12,261 — — 12,385

Conversion of units into common shares — 42 — — 42

Amortization of pension and postretirement plan liabilities — — 188 — 188

Foreign currency translation adjustment — — ( 34,373 ) ( 1,912 ) ( 36,285 )

Cash flow hedges — — 8,247 ( 2,492 ) 5,755

Noncontrolling interests in consolidated affiliates redemption of shares — — — ( 27,860 ) ( 27,860 )

Balance, June 30, 2022 $ 18,031 $ 1,785,126 $ 4,277 $ 13,016 $ 1,820,450

See Notes to Consolidated Financial Statements.

3 unchanged sentences

(Dollars in thousands)

Three Months Ended March 31,

Six Months Ended June 30,

OPERATING ACTIVITIES

6 unchanged sentences

Amortization of losses from pension and postretirement plans 3 376

Timber write-offs due to casualty events 2,302 —

Timber write-off resulting from a casualty event 2,302 —

Other ( 541 ) ( 4,206 )

25 unchanged sentences

Balance, end of period $ 93,366 $ 296,073

Three Months Ended March 31,

Six Months Ended June 30,

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

4 unchanged sentences

Capital assets purchased on account 5,303 4,882

(a) Interest paid is presented net of patronage paymen ts received of $ 6.1 million an d $ 5.5 million for the three months ended March 31, 2023 and March 31, 2022, respectively.

Non-cash financing activity:

Noncontrolling interests in consolidated affiliates redemption of shares (c) — 27,860

(a) Interest paid is presented net of patronage paymen ts received of $ 6.2 million an d $ 6.0 million for the six months ended June 30, 2023 and June 30, 2022, respectively.

For additional information on patronage payments, see Note 7 — Debt in the 2022 Form 10-K.

(b) Income taxes paid in 2022 were elevated due to timing of required tax payments for the New Zealand subsidiary following a full utilization of its net operating losses.

See Notes to Consolidated Financial Statements.

RAYONIER INC.

AND SUBSIDIARIES

RAYONIER, L.P.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollar amounts in thousands unless otherwise stated)

BASIS OF PRESENTATION

7 unchanged sentences

These statements and notes should be read in conjunction with the financial statements and supplementary data included in our Annual Report on Form 10-K for the year ended December 31, 2022, as filed with the SEC (the “2022 Form 10-K”).

As of March 31, 2023, the Company owned a 98.4 % interest in the Operating Partnership, with the remaining 1.6 % interest owned by limited partners of the Operating Partnership.

As of June 30, 2023, the Company owned a 98.4 % interest in the Operating Partnership, with the remaining 1.6 % interest owned by limited partners of the Operating Partnership.

As the sole general partner of the Operating Partnership, Rayonier Inc.

7 unchanged sentences

CCS contracts contain variable consideration arrangements, which may include variable durations, rates, access acres and carbon volumes.

The determination of the transaction price and the allocation of the transaction price to the performance obligations may require significant judgment and is based on management’s estimate of the mostly likely amount of consideration we expect to receive as of the reporting date.

The determination of the transaction price and the allocation of the transaction price to the performance obligations may require significant judgment and is based on management’s estimate of the most likely amount of consideration we expect to receive as of the reporting date.

Variable consideration is included in the transaction price only to the extent that it is probable that a significant reversal of the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved.

6 unchanged sentences

SUBSEQUENT EVENTS

We have evaluated events occurring from March 31, 2023 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.

On July 24, 2023, the New Zealand subsidiary renewed its NZ$ 20 million working capital facility, extending its maturity date to June 30, 2024.

The facility is available for short-term operating cash flow needs of the New Zealand subsidiary.

This facility holds a variable interest rate indexed to the 90-day New Zealand Bank Bill rate (“BKBM”).

The margins are set for the term of the facility.

See Note 6 — Debt for additional information.

RAYONIER INC.

10 unchanged sentences

Certain income (loss) items in the Consolidated Statements of Income and Comprehensive Income are not allocated to segments.

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

The following tables summarize the segment information for the three months ended March 31, 2023 and 2022:

Three Months Ended March 31,

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

The following tables summarize the segment information for the three and six months ended June 30, 2023 and 2022:

Three Months Ended June 30, Six Months Ended June 30,

SALES 2023 2022 2023 2022

7 unchanged sentences

(a) Primarily consists of log marketing fees paid to our Trading segment from our Southern Timber and Pacific Northwest Timber segments for marketing log export sales.

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

OPERATING INCOME 2023 2022 2023 2022

8 unchanged sentences

Total Income before Income Taxes $ 19,289 $ 26,591 $ 27,764 $ 63,104

(a) The three months ended March 31, 2023 includes a $ 2.3 million timber write-off resulting from a casualty event.

Timber write-offs resulting from a casualty event are recorded within the Consolidated Statements of Income and Comprehensive Income under the caption “Cost of Sales”.

(b) The three months ended March 31, 2023 includes a $ 9.1 million net recovery associated with a legal settlement.

(a) The six months ended June 30, 2023 includes a $ 2.3 million timber write-off resulting from a casualty event.

Timber write-offs resulting from casualty events are recorded within the Consolidated Statements of Income and Comprehensive Income under the caption “Cost of Sales.”

(b) The three and six months ended June 30, 2023 include $ 11.4 million and $ 20.5 million, respectively, of net recoveries associated with legal settlements.

RAYONIER INC.

4 unchanged sentences

(Dollar amounts in thousands unless otherwise stated)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

DEPRECIATION, DEPLETION AND AMORTIZATION 2023 2022 2023 2022

5 unchanged sentences

Total $ 39,715 $ 35,751 $ 77,314 $ 83,169

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT 2023 2022 2023 2022

3 unchanged sentences

We recognize revenue when control of promised goods or services (“performance obligations”) is transferred to customers, in an amount that reflects the consideration expected in exchange for those goods or services (“transaction price”).

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 March 31, 2023 are primarily due to advances on stumpage contracts, unearned license revenue, unearned carbon capture and storage revenue and post-closing obligations on real estate sales.

These performance obligations are expected to be satisfied within the next twelve months .

Unsatisfied performance obligations as of June 30, 2023 are primarily due to advances on stumpage contracts, unearned license revenue, unearned carbon capture and storage revenue and post-closing obligations on real estate sales.

Of these performance obligations, $ 33.5 million is expected to be recognized within the next twelve months , with the remaining $ 11.3 million expected to be recognized thereafter as we satisfy our performance obligations.

We generally collect payment within a year of satisfying performance obligations and therefore have elected not to adjust revenues for a financing component.

CONTRACT BALANCES

The timing of revenue recognition, invoicing and cash collections results in 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.

The timing of revenue recognition, invoicing and cash collections results in trade receivables and deferred revenue (contract liabilities) on the Consolidated Balance Sheets.

Trade receivables are recorded when we have an unconditional right to consideration for completed performance under the contract.

Contract liabilities relate to payments received in advance of performance under the contract.

Contract liabilities are recognized as revenue as (or when) we perform under the contract.

The following table summarizes revenue recognized during the three months ended March 31, 2023 and 2022 that was included in the contract liability balance at the beginning of each year:

Three Months Ended March 31,

The following table contains contract balances recorded in the Consolidated Balance Sheets at June 30, 2023 and December 31, 2022:

June 30, 2023 December 31, 2022 Balance Sheet Location

Contract assets

Trade receivables, net (a) $ 31,515 $ 27,837 Trade receivables

Contract liabilities

Deferred revenue, current (b) 33,490 22,762 Deferred revenue

Deferred revenue, non-current (c) 11,327 6,895 Long-term deferred revenue

(a) The increase in trade receivables was primarily driven by timing of sales in our timber segments.

(b) The increase in deferred revenue, current is driven by the timing of renewals of hunting contracts and the current portion of a carbon capture and storage contract entered into in the first quarter of 2023, partially offset by the satisfaction of post-closing obligations on real estate sales and stumpage contracts.

(c) The increase in deferred revenue, non-current is primarily driven by a carbon capture and storage contract entered into in the first quarter of 2023.

RAYONIER INC.

AND SUBSIDIARIES

RAYONIER, L.P.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollar amounts in thousands unless otherwise stated)

The following table summarizes revenue recognized during the three and six months ended June 30, 2023 and 2022 that was included in the contract liability balance at the beginning of each year:

Three Months Ended June 30, Six Months Ended June 30,

2023 2022 2023 2022

Revenue recognized from contract liability balance at the beginning of the year (a) $ 6,335 $ 4,968 $ 17,735 $ 12,501

6 unchanged sentences

(Dollar amounts in thousands unless otherwise stated)

The following tables present our revenue from contracts with customers disaggregated by product type for the three months ended March 31, 2023 and 2022:

The following tables present our revenue from contracts with customers disaggregated by product type for the three and six months ended June 30, 2023 and 2022:

Three Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Elim.

March 31, 2023

June 30, 2023

Pulpwood $ 23,855 $ 2,204 $ 8,364 — $ 1,442 — $ 35,865

3 unchanged sentences

License Revenue, Primarily from Hunting 5,186 203 68 — — — 5,457

Other Non-Timber/Carbon Revenue (a) 4,128 787 286 — — — 5,201

Other Non-Timber/Carbon Revenue 4,717 2,129 637 — — — 7,483

Agency Fee Income — — — — 347 — 347

3 unchanged sentences

Timberland & Non-Strategic — — — 255 — — 255

Deferred Revenue/Other (b) — — — 3,093 — — 3,093

Deferred Revenue/Other (a) — — — 3,568 — — 3,568

Total Real Estate Sales — — — 31,682 — — 31,682

4 unchanged sentences

Three Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Elim.

March 31, 2022

June 30, 2022

Pulpwood $ 30,770 $ 3,572 $ 10,851 — $ 2,999 — $ 48,192

8 unchanged sentences

Rural — — — 23,420 — — 23,420

Deferred Revenue/Other (a) — — — ( 907 ) — — ( 907 )

Total Real Estate Sales — — — 34,079 — — 34,079

Revenue from Contracts with Customers 66,271 39,157 78,882 34,079 27,634 — 246,023

Lease Revenue — — — 323 — — 323

Intersegment — — — — 49 ( 49 ) —

Total Revenue $ 66,271 $ 39,157 $ 78,882 $ 34,402 $ 27,683 ($ 49 ) $ 246,346

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

RAYONIER INC.

AND SUBSIDIARIES

RAYONIER, L.P.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollar amounts in thousands unless otherwise stated)

Six Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Elim.

June 30, 2023

Pulpwood $ 50,638 $ 5,919 $ 14,446 — $ 2,881 — $ 73,884

Sawtimber 68,389 57,562 89,512 — 24,176 — 239,639

Hardwood 1,826 — — — — — 1,826

Total Timber Sales 120,853 63,481 103,958 — 27,057 — 315,349

License Revenue, Primarily From Hunting 10,454 340 123 — — — 10,917

Other Non-Timber/Carbon Revenue 8,845 2,915 923 — — — 12,683

Agency Fee Income — — — — 681 — 681

Total Non-Timber Sales 19,299 3,255 1,046 — 681 — 24,281

Improved Development — — — 17,035 — — 17,035

Rural — — — 22,125 — — 22,125

Timberland & Non-Strategic — — — 1,892 — — 1,892

Deferred Revenue/Other (b) — — — 636 — — 636

Deferred Revenue/Other (a) — — — 6,661 — — 6,661

Total Real Estate Sales — — — 47,713 — — 47,713

3 unchanged sentences

Total Revenue $ 140,152 $ 66,736 $ 105,004 $ 48,317 $ 27,984 ($ 246 ) $ 387,947

(a) Includes $ 0.6 million of CCS revenue.

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

Six Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Real Estate Trading Elim.

June 30, 2022

Pulpwood $ 68,381 $ 6,491 $ 18,446 — $ 4,523 — $ 97,841

Sawtimber 49,260 76,524 106,347 — 35,857 — 267,988

Hardwood 11,555 — — — — — 11,555

Total Timber Sales 129,196 83,015 124,793 — 40,380 — 377,384

License Revenue, Primarily from Hunting 11,182 245 148 — — — 11,575

Other Non-Timber/Carbon Revenue 2,657 2,177 5,330 — — — 10,164

Agency Fee Income — — — — 667 — 667

Total Non-Timber Sales 13,839 2,422 5,478 — 667 — 22,406

Improved Development — — — 16,532 — — 16,532

Rural — — — 40,369 — — 40,369

Timberland & Non-Strategic — — — 11,400 — — 11,400

Deferred Revenue/Other (a) — — — ( 271 ) — — ( 271 )

Total Real Estate Sales — — — 68,030 — — 68,030

Revenue from Contracts with Customers 143,035 85,437 130,271 68,030 41,047 — 467,820

Lease Revenue — — — 567 — — 567

Intersegment — — — — 98 ( 98 ) —

Total Revenue $ 143,035 $ 85,437 $ 130,271 $ 68,597 $ 41,145 ($ 98 ) $ 468,387

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

RAYONIER INC.

4 unchanged sentences

(Dollar amounts in thousands unless otherwise stated)

The following tables present our timber sales disaggregated by contract type for the three months ended March 31, 2023 and 2022:

The following tables present our timber sales disaggregated by contract type for the three and six months ended June 30, 2023 and 2022:

Three Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Trading Total

March 31, 2023

June 30, 2023

Stumpage Pay-as-Cut $ 30,493 — — — $ 30,493

5 unchanged sentences

Total Timber Sales $ 58,407 $ 29,985 $ 60,193 $ 14,952 $ 163,537

March 31, 2022

June 30, 2022

Stumpage Pay-as-Cut $ 21,326 — — — $ 21,326

Stumpage Lump Sum 90 85 — — 175

Total Stumpage 21,416 85 — — 21,501

Delivered Wood (Domestic) 33,248 33,956 18,051 1,104 86,359

Delivered Wood (Export) 3,556 3,841 57,047 26,214 90,658

Total Delivered 36,804 37,797 75,098 27,318 177,017

Total Timber Sales $ 58,220 $ 37,882 $ 75,098 $ 27,318 $ 198,518

RAYONIER INC.

AND SUBSIDIARIES

RAYONIER, L.P.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollar amounts in thousands unless otherwise stated)

Six Months Ended Southern Timber Pacific Northwest Timber New Zealand Timber Trading Total

June 30, 2023

Stumpage Pay-as-Cut $ 60,970 — — — $ 60,970

Stumpage Lump Sum 387 624 — — 1,011

Total Stumpage 61,357 624 — — 61,981

Delivered Wood (Domestic) 54,850 56,164 24,154 491 135,659

Delivered Wood (Export) 4,646 6,693 79,804 26,566 117,709

Total Delivered 59,496 62,857 103,958 27,057 253,368

Total Timber Sales $ 120,853 $ 63,481 $ 103,958 $ 27,057 $ 315,349

June 30, 2022

Stumpage Pay-as-Cut $ 57,532 — — — $ 57,532

Stumpage Lump Sum

90 5,473 — — 5,563

24 unchanged sentences

The following table sets forth the Company’s noncontrolling interests in the operating partnership:

Three Months Ended

Three Months Ended June 30, Six Months Ended

2023 2022 2023 2022

Beginning noncontrolling interests in the operating partnership

1 unchanged sentence

Adjustment of noncontrolling interests in the operating partnership

( 4,296 ) ( 11,412 ) ( 1,920 ) ( 8,767 )

Conversions of Redeemable Operating Partnership Units to Common Shares

1 unchanged sentence

Net Income attributable to noncontrolling interests in the operating partnership

Other Comprehensive (Loss) Income attributable to noncontrolling interests in the operating partnership

318 546 492 1,214

Other Comprehensive Income (Loss) attributable to noncontrolling interests in the operating partnership

58 ( 575 ) ( 1,052 ) ( 474 )

Distributions to noncontrolling interests in the operating partnership

10 unchanged sentences

The following table provides details of the calculations of basic and diluted earnings per common share of the Company:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2023 2022 2023 2022

Earnings per common share - basic

19 unchanged sentences

$ 0.13 $ 0.16 $ 0.18 $ 0.36

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2023 2022 2023 2022

Anti-dilutive shares excluded from the computations of diluted earnings per common share:

8 unchanged sentences

The following table provides details of the calculations of basic and diluted earnings per unit of the Operating Partnership:

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2023 2022 2023 2022

Earnings per unit - basic

16 unchanged sentences

$ 0.13 $ 0.16 $ 0.18 $ 0.36

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2023 2022 2023 2022

Anti-dilutive unit equivalents excluded from the computations of diluted earnings per unit:

7 unchanged sentences

(Dollar amounts in thousands unless otherwise stated)

Our debt consisted of the following at March 31, 2023:

March 31, 2023

Our debt consisted of the following at June 30, 2023:

June 30, 2023

Senior Notes due 2031 at a fixed interest rate of 2.75 %

2015 Term Loan borrowings due 2028 at a variable interest rate of 6.34 % at March 31, 2023

2022 Incremental Term Loan borrowings due 2027 at a variable interest rate of 6.34 % at March 31, 2023

2016 Incremental Term Loan borrowings due 2026 at a variable interest rate of 6.39 % at March 31, 2023

2021 Incremental Term Loan borrowings due 2029 at a variable interest rate of 6.29 % at March 31, 2023

2015 Term Loan borrowings due 2028 at a variable interest rate of 6.76 % at June 30, 2023

2022 Incremental Term Loan borrowings due 2027 at a variable interest rate of 6.76 % at June 30, 2023

2016 Incremental Term Loan borrowings due 2026 at a variable interest rate of 6.81 % at June 30, 2023

2021 Incremental Term Loan borrowings due 2029 at a variable interest rate of 6.71 % at June 30, 2023

New Zealand subsidiary noncontrolling interests shareholder loan due 2026 at a fixed interest rate of 3.64 % (a)

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(a) Except for changes in the New Zealand foreign exchange rate, there have been no adjustments to the carrying value of the shareholder loans since inception.

The following table contains information on the outstanding variable rate debt as of March 31, 2023:

The following table contains information on the outstanding variable rate debt as of June 30, 2023:

Debt Periodic Interest Rate (a) Effective Fixed Interest Rate (b)

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2023 DEBT ACTIVITY

During the three months ended March 31, 2023, we made no borrowings or repayments on our Revolving Credit Facility.

At March 31, 2023, we had available borrowings of $ 296.2 million under the Revolving Credit Facility, net of $ 3.8 million to secure our outstanding letters of credit.

During the six months ended June 30, 2023, we made no borrowings or repayments on our Revolving Credit Facility.

At June 30, 2023, we had available borrowings of $ 296.2 million under the Revolving Credit Facility, net of $ 3.8 million to secure our outstanding letters of credit.

New Zealand Debt

During the three months ended March 31, 2023, the New Zealand subsidiary made no borrowings and repayments on its working capital facility (the “New Zealand Working Capital Facility”).

At March 31, 2023, the New Zealand subsidiary had NZ$ 20.0 million of available borrowings under its working capital facility.

In June 2023, the New Zealand subsidiary temporarily extended its NZ$ 20 million working capital facility for an additional 1 -month term.

During the six months ended June 30, 2023, the New Zealand subsidiary made no borrowings and repayments on its working capital facility (the “New Zealand Working Capital Facility”).

At June 30, 2023, the New Zealand subsidiary had NZ$ 20.0 million of available borrowings under its working capital facility.

See the subsequent events section of Note 1 — B asis of Presentation for information about the renewal of the New Zealand subsidiary’s working capital facility subsequent to June 30, 2023.

DEBT COVENANTS

In connection with our 2015 Term Loan Facility, 2016 Incremental Term Loan Facility, 2021 Incremental Term Loan Agreement, 2022 Incremental Term Loan Agreement and Revolving Credit Facility, customary covenants must be met, the most significant of which include interest coverage and leverage ratios.

The covenants listed below, which are the most significant financial covenants in effect as of March 31, 2023, are calculated on a trailing 12-month basis:

The covenants listed below, which are the most significant financial covenants in effect as of June 30, 2023, are calculated on a trailing 12-month basis:

Covenant Requirement Actual Ratio Favorable

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In addition to these financial covenants listed above, the Senior Notes due 2031, 2015 Term Loan Facility, 2016 Incremental Term Loan Facility, 2021 Incremental Term Loan Facility, 2022 Incremental Term Loan Facility, and Revolving Credit Facility include customary covenants that limit the incurrence of debt and the disposition of assets, among others.

At March 31, 2023, we were in compliance with all applicable covenants.

At June 30, 2023, we were in compliance with all applicable covenants.

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

7 unchanged sentences

The changes in the fair value of derivatives not designated as hedging instruments and those which are no longer effective as hedging instruments, are recognized immediately in earnings.

FOREIGN CURRENCY EXCHANGE AND OPTION CONTRACTS

Our New Zealand subsidiary’s domestic sales and operating expenses are predominately denominated in New Zealand dollars, while its export sales, shareholder distributions and ocean freight payments are predominately denominated in U.S.

To the extent New Zealand dollar costs exceed New Zealand dollar revenues (the “foreign exchange exposure”), the New Zealand subsidiary manages the foreign exchange exposure through the use of derivative financial instruments.

It typically hedges a portion of export sales receipts to cover 50 % to 90 % of the projected foreign exchange exposure for the following 12 months, up to 75 % for the forward 12 to 18 months and up to 50 % for the forward 18 to 24 months.

Additionally, it will occasionally hedge export sales receipts to cover

RAYONIER INC.

4 unchanged sentences

(Dollar amounts in thousands unless otherwise stated)

up to 50 % of the foreign exchange exposure for the forward 24 to 48 months when the New Zealand dollar is at a cyclical low versus the U.S.

FOREIGN CURRENCY EXCHANGE AND OPTION CONTRACTS

Additionally, it will occasionally hedge export sales receipts to cover up to 50 % of the foreign exchange exposure for the forward 24 to 36 months and up to 25 % of the foreign exchange exposure for the forward 36 to 48 months when the New Zealand dollar is at a cyclical low versus the U.S.

The New Zealand subsidiary’s trading operations typically hedge a portion of export sales receipts to cover the projected foreign exchange exposure for the following three months.

As of March 31, 2023, foreign currency exchange contracts and foreign currency option contracts had maturity dates through February 2026 and October 2025, respectively.

As of June 30, 2023, foreign currency exchange contracts and foreign currency option contracts had maturity dates through Ma y 2026 .

Foreign currency exchange and option contracts hedging foreign currency risk qualify for cash flow hedge accounting.

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INTEREST RATE SWAPS

The following table contains information on the outstanding interest rate swaps as of March 31, 2023:

The following table contains information on the outstanding interest rate swaps as of June 30, 2023:

Outstanding Interest Rate Swaps (a)

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In March 2023, we modified our benchmark rates from LIBOR to Daily Simple SOFR for our forward-starting interest rates swaps, resulting in slightly favorable fixed rates.

The following table contains information on the outstanding forward-starting interest rate swaps as of March 31, 2023:

In May 2023, we entered into a new $50 million forward-starting interest rate swap, benchmarked to the Daily Simple SOFR.

The following table contains information on the outstanding forward-starting interest rate swaps as of June 30, 2023:

Outstanding Forward-Starting Interest Rate Swaps (a)

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May 2020 4 years 50,000 0.64 % Term Credit Agreement August 2024 N/A

May 2023 4 years 50,000 3.29 % Term Credit Agreement August 2024 N/A

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

The following tables demonstrate the impact, gross of tax, of our derivatives on the Consolidated Statements of Income and Comprehensive Income for the three months ended March 31, 2023 and 2022:

The following tables demonstrate the impact, gross of tax, of our derivatives on the Consolidated Statements of Income and Comprehensive Income for the three and six months ended June 30, 2023 and 2022:

Three Months Ended

1 unchanged sentence

Derivatives designated as cash flow hedges:

Foreign currency exchange contracts Other comprehensive (loss) income $ 3,813 $ 3,417

Other operating expense, net ( 2,429 ) 97

Foreign currency option contracts Other comprehensive (loss) income ( 270 ) 136

Interest rate products Other comprehensive (loss) income ( 9,660 ) 35,129

Foreign currency exchange contracts Other comprehensive income (loss) $ 188 ($ 14,438 )

Other operating (expense) income, net ( 1,577 ) 86

Foreign currency option contracts Other comprehensive income (loss) ( 561 ) ( 686 )

Other operating (expense) income, net ( 48 ) —

Interest rate products Other comprehensive income (loss) 17,695 14,636

Interest expense, net ( 4,314 ) 1,948

During the next 12 months, the amount of the March 31, 2023 AOCI balance, net of tax, expected to be reclassified into earnings is a gain of approximately $ 19.3 million.

Six Months Ended

Income Statement Location 2023 2022

Derivatives designated as cash flow hedges:

Foreign currency exchange contracts Other comprehensive income (loss) $ 4,001 ($ 10,909 )

Other operating (expense) income, net ( 4,005 ) 70

Foreign currency option contracts Other comprehensive income (loss) ( 831 ) ( 550 )

Other operating (expense) income, net ( 48 ) —

Interest rate products Other comprehensive income (loss) 8,035 49,765

Interest expense, net ( 7,777 ) 4,618

RAYONIER INC.

AND SUBSIDIARIES

RAYONIER, L.P.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollar amounts in thousands unless otherwise stated)

During the next 12 months, the amount of the June 30, 2023 AOCI balance, net of tax, expected to be reclassified into earnings is a gain of approximately $ 24.1 million.

The following table contains details of the expected reclassified amounts into earnings:

6 unchanged sentences

(a) These reclassified amounts are expected to fully offset variable interest rate payments made to debt holders, resulting in no net impact on our earnings or cash flows.

RAYONIER INC.

AND SUBSIDIARIES

RAYONIER, L.P.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollar amounts in thousands unless otherwise stated)

The following table contains the notional amounts of the derivative financial instruments recorded in the Consolidated Balance Sheets:

Notional Amount

March 31, 2023 December 31, 2022

June 30, 2023 December 31, 2022

Derivatives designated as cash flow hedges:

3 unchanged sentences

Forward-starting interest rate swaps 200,000 150,000

The following table contains the fair values of the derivative financial instruments recorded in the Consolidated Balance Sheets at March 31, 2023 and December 31, 2022.

RAYONIER INC.

AND SUBSIDIARIES

RAYONIER, L.P.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollar amounts in thousands unless otherwise stated)

The following table contains the fair values of the derivative financial instruments recorded in the Consolidated Balance Sheets at June 30, 2023 and December 31, 2022.

Changes in balances of derivative financial instruments are recorded as operating activities in the Consolidated Statements of Cash Flows:

Location on Balance Sheet Fair Value Assets / (Liabilities) (a)

March 31, 2023 December 31, 2022

June 30, 2023 December 31, 2022

Derivatives designated as cash flow hedges:

33 unchanged sentences

Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The following table presents the carrying amount and estimated fair values of our financial instruments as of March 31, 2023 and December 31, 2022, using market information and what we believe to be appropriate valuation methodologies under GAAP:

March 31, 2023 December 31, 2022

The following table presents the carrying amount and estimated fair values of our financial instruments as of June 30, 2023 and December 31, 2022, using market information and what we believe to be appropriate valuation methodologies under GAAP:

June 30, 2023 December 31, 2022

Asset (Liability) (a) Carrying

10 unchanged sentences

Noncontrolling interests in the operating partnership (e) 77,532 — 77,532 105,763 — 105,763

(a) We did not have Level 3 assets or liabilities at March 31, 2023 and December 31, 2022.

(a) We did not have Level 3 assets or liabilities at June 30, 2023 and December 31, 2022.

(b) Restricted cash represents proceeds from like-kind exchange sales deposited with a third-party intermediary and cash held in escrow.

31 unchanged sentences

Like the liability that attaches to current property owners in the cleanup context, liability for natural resource damages (“NRD”) can attach to a property simply because an injury to natural resources resulted from releases of contaminated materials on or from the owner’s property, regardless of culpability for the release.

Changes in environmental and NRD liabilities from December 31, 2022 to March 31, 2023 are shown below:

Changes in environmental and NRD liabilities from December 31, 2022 to June 30, 2023 are shown below:

Port Gamble, WA

3 unchanged sentences

Expenditures charged to liabilities ( 223 )

Total Balance at March 31, 2023

Decrease to liabilities (a) ( 20 )

Total Balance at June 30, 2023

Current portion ( 2,371 )

Non-current portion at March 31, 2023

Non-current portion at June 30, 2023

(a) Reflects revised environmental and NRD cost estimates recorded during the six months ended June 30, 2023.

It is expected that the upland mill site cleanup and NRD restoration will occur over the next one to two years , while the monitoring of Port Gamble Bay, mill site, and landfills will continue for an additional 15 to 20 years.

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We provide financial guarantees as required by creditors, insurance programs, and various governmental agencies.

As of March 31, 2023, the following financial guarantees were outstanding:

As of June 30, 2023, the following financial guarantees were outstanding:

Financial Commitments (a) Maximum Potential

7 unchanged sentences

These letters of credit will expire at various dates during 2023 and will be renewed as required.

(c) Surety bonds are issued primarily to secure performance obligations related to various operational activities, to provide collateral for our Wildlight development project in Nassau County, Florida and our Heartwood development project in Richmond Hill, Georgia.

(c) Surety bonds are issued primarily to secure performance obligations related to various operational activities and to provide collateral for our Wildlight development project in Nassau County, Florida and our Heartwood development project in Richmond Hill, Georgia.

These surety bonds expire at various dates during 2023, 2024, and 2025 and are expected to be renewed as required.

12 unchanged sentences

(Dollar amounts in thousands unless otherwise stated)

Changes in higher and better use timberlands and real estate development investments from December 31, 2022 to March 31, 2023 are shown below:

Changes in higher and better use timberlands and real estate development investments from December 31, 2022 to June 30, 2023 are shown below:

Higher and Better Use Timberlands and Real Estate Development Investments

10 unchanged sentences

Capital expenditures (silviculture) 23 — 23

Total Balance at March 31, 2023

Intersegment transfers 553 — 553

Total Balance at June 30, 2023

90,631 44,675 135,306

Current portion (a) ( 1,346 ) ( 22,174 ) ( 23,520 )

Non-current portion at March 31, 2023

Non-current portion at June 30, 2023

$ 89,285 $ 22,501 $ 111,786

3 unchanged sentences

Parcel real estate development investments represent investments made for specific lots and/or commercial parcels that are currently under contract or expected to be ready for market within a year.

As of March 31, 2023 and December 31, 2022, our inventory consisted entirely of finished goods, as follows:

March 31, 2023 December 31, 2022

As of June 30, 2023 and December 31, 2022, our inventory consisted entirely of finished goods, as follows:

June 30, 2023 December 31, 2022

Finished goods inventory

6 unchanged sentences

(b) Represents the basis in New Zealand carbon units intended to be sold in the next 12 months.

OTHER OPERATING EXPENSE, NET

Other operating expense, net consisted of the following:

Three Months Ended March 31,

Loss on foreign currency remeasurement, net of cash flow hedges ($ 2,484 ) ($ 571 )

OTHER OPERATING (EXPENSE) INCOME, NET

Other operating (expense) income, net consisted of the following:

Three Months Ended June 30, Six Months Ended June 30,

2023 2022 2023 2022

(Loss) gain on foreign currency remeasurement, net of cash flow hedges ($ 1,674 ) $ 1,249 ($ 4,157 ) $ 677

Gain on sale or disposal of property and equipment 35 6 37 31

Equity loss related to Bainbridge Landing LLC joint venture — ( 145 ) — ( 370 )

Miscellaneous expense, net ( 34 ) ( 211 )

Miscellaneous income (expense), net 238 ( 309 ) 203 ( 520 )

Total ($ 1,401 ) $ 801 ($ 3,917 ) ($ 182 )

26 unchanged sentences

Three Months Ended

March 31, Three Months Ended

June 30, Three Months Ended

2023 2022 2023 2022

4 unchanged sentences

Net periodic benefit (credit) cost ($ 42 ) ($ 79 ) $ 18 $ 19

Components of Net Periodic Benefit (Credit) Cost Income Statement Location Pension Postretirement

Six Months Ended

June 30, Six Months Ended

2023 2022 2023 2022

Service cost Selling and general expenses — — $ 2 $ 3

Interest cost Interest and other miscellaneous income (expense), net 1,689 1,217 35 26

Expected return on plan assets (a) Interest and other miscellaneous income (expense), net ( 1,776 ) ( 1,743 ) — —

Amortization of losses Interest and other miscellaneous income (expense), net 3 369 — 7

Net periodic benefit (credit) cost ($ 84 ) ($ 157 ) $ 37 $ 36

(a) The weighted-average expected long-term rate of return on plan assets used in computing 2023 net periodic benefit cost for pension benefit s is 5.0 %.

7 unchanged sentences

federal or state income tax.

As of March 31, 2023, Rayonier owns a 98.4 % inter est in the Operating Partnership and conducts substantially all of its timberland operations through the Operating Partnership.

As of June 30, 2023, Rayonier owns a 98.4 % inter est in the Operating Partnership and conducts substantially all of its timberland operations through the Operating Partnership.

The taxable income or loss generated by the Operating Partnership is passed through and reported to its unit holders (including the Company) on a Schedule K-1 for inclusion in each unitholder’s income tax return.

7 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2023 2022 2023 2022

Income tax expense ($ 193 ) ($ 1,304 ) ($ 1,230 ) ($ 6,818 )

3 unchanged sentences

The following table contains the Company’s annualized effective tax rate after discrete items:

Three Months Ended

Six Months Ended

Annualized effective tax rate after discrete items 3.9 % 9.2 %

6 unchanged sentences

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The following table summarizes the changes in AOCI by component for the three months ended March 31, 2023 and the year ended December 31, 2022.

The following table summarizes the changes in AOCI by component for the six months ended June 30, 2023 and the year ended December 31, 2022.

All amounts are presented net of tax and exclude portions attributable to noncontrolling interests.

12 unchanged sentences

Balance as of

March 31, 2023

June 30, 2023

($ 30,409 ) $ 1,321 $ 66,973 ($ 10,206 ) $ 27,679 ($ 3,384 ) $ 24,295

(a) The three months ended March 31, 2023 includes $ 9.6 million of other comprehensive loss related to interest rate products.

The three months ended December 31, 2022 included $ 75.0 million of other comprehensive income related to interest rate products.

(a) The six months ended June 30, 2023 includes $ 8.0 million of other comprehensive income related to interest rate products.

The year ended December 31, 2022 included $ 75.0 million of other comprehensive income re lated to interest rate products.

See Note 7 — Derivative Financial Instruments and Hedging Activities for additional information.

1 unchanged sentence

See Note 15 — Employee Benefit Plans for additional information.

The following table presents details of the amounts reclassified in their entirety from AOCI to net income for the three months ended March 31, 2023 and March 31, 2022:

The following table presents details of the amounts reclassified in their entirety from AOCI to net income for the six months ended June 30, 2023 and June 30, 2022:

Details about accumulated other comprehensive income (loss) components Amount reclassified from accumulated other comprehensive income (loss) Affected line item in the Income Statement

March 31, 2023 March 31, 2022

June 30, 2023 June 30, 2022

Realized (gain) loss on foreign currency exchange contracts ($ 4,005 ) $ 71 Other operating expense, net

Realized loss on foreign currency option contracts ( 48 ) — Other operating expense, net

Noncontrolling interests 932 ( 16 ) Comprehensive loss (income) attributable to noncontrolling interests

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Restricted cash, Timber Funds includes the portion of proceeds from Fund II Timberland Dispositions required to be distributed to noncontrolling interests.

The following table provides a reconciliation of cash, cash equivalents and restricted cash in the Consolidated Balance Sheets that sum to the total of the same such amounts in the Consolidated Statements of Cash Flows for the three months ended March 31, 2023 and 2022:

Three Months Ended March 31,

Six Months Ended June 30,

Restricted cash, excluding Timber Funds:

7 unchanged sentences

Assets held for sale is composed of properties under contract and expected to be sold within 12 months that also meet the other relevant held-for-sale criteria in accordance with ASC 360-10-45-9.

As of March 31, 2023 and December 31, 2022, the basis in properties meeting this classification was $ 1.2 million and $ 0.7 million, respectively.

As of June 30, 2023 and December 31, 2022, the basis in properties meeting this classification was $ 4.2 million and $ 0.7 million, respectively.

Since the basis in these properties was less than the fair value, including costs to sell, no impairment was recognized.

RAYONIER INC.

AND SUBSIDIARIES

RAYONIER, L.P.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollar amounts in thousands unless otherwise stated)

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements