What changed in this filing

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Item 1. Financial Statements

2023-11-03 compared with 2023-08-04 · 277 added, 179 removed, 1153 unchanged (28% of the section changed)

6 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

9 unchanged sentences

Interest expense, net ( 12,598 ) ( 9,056 ) ( 36,755 ) ( 26,476 )

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

Interest and other miscellaneous income, net 529 1,252 21,725 990

INCOME BEFORE INCOME TAXES 23,287 33,099 51,051 96,203

3 unchanged sentences

Net income attributable to noncontrolling interests in the operating partnership ( 320 ) ( 455 ) ( 811 ) ( 1,670 )

Net loss (income) attributable to noncontrolling interests in consolidated affiliates 245 ( 637 ) 1,281 ( 1,650 )

Net income attributable to noncontrolling interests in consolidated affiliates ( 3,183 ) ( 10,828 ) ( 1,902 ) ( 12,478 )

NET INCOME ATTRIBUTABLE TO RAYONIER INC.

7 unchanged sentences

Total other comprehensive income (loss) 2,968 ( 5,057 ) ( 10,344 ) 11,673

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.

COMPREHENSIVE INCOME 25,708 26,804 38,930 99,820

Comprehensive income attributable to noncontrolling interests in the operating partnership ( 373 ) ( 490 ) ( 592 ) ( 2,147 )

Comprehensive income attributable to noncontrolling interests in consolidated affiliates ( 2,906 ) ( 8,029 ) ( 884 ) ( 6,670 )

COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.

$ 22,429 $ 18,285 $ 37,454 $ 91,003

9 unchanged sentences

(Dollars in thousands)

June 30, 2023 December 31, 2022

September 30, 2023 December 31, 2022

CURRENT ASSETS

96 unchanged sentences

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

RAYONIER INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (CONTINUED)

(Dollars in thousands, except share data)

Common Shares Retained

Earnings Accumulated

Comprehensive Income Noncontrolling Interests in Consolidated Affiliates Shareholders’

Shares Amount

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

Net income — — 19,557 — 3,183 22,740

Net income attributable to noncontrolling interests in the operating partnership — — ( 320 ) — — ( 320 )

Dividends ($ 0.285 per share) (a)

— — ( 42,460 ) — — ( 42,460 )

Issuance of shares under incentive stock plans 3,959 — — — — —

Stock-based compensation — 3,365 — — — 3,365

Repurchase of common shares ( 968 ) ( 29 ) — — — ( 29 )

Adjustment of noncontrolling interests in the operating partnership — — 6,890 — — 6,890

Conversion of common units to common shares 15,904 479 — — — 479

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

Foreign currency translation adjustment — — — ( 4,180 ) ( 233 ) ( 4,413 )

Cash flow hedges — — — 7,423 ( 44 ) 7,379

Allocation of other comprehensive income to noncontrolling interests in the operating partnership — — — ( 36 ) — ( 36 )

Balance, September 30, 2023 148,287,338 $ 1,493,511 $ 295,096 $ 27,504 $ 16,201 $ 1,832,312

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

42 unchanged sentences

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

RAYONIER INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (CONTINUED)

(Dollars in thousands, except share data)

Common Shares Retained

Earnings Accumulated

Comprehensive Income (Loss) Noncontrolling Interests in Consolidated Affiliates Shareholders’

Shares Amount

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

Net income — — 21,033 — 10,828 31,861

Net income attributable to noncontrolling interests in the operating partnership — — ( 455 ) — — ( 455 )

Dividends ($ 0.285 per share) (a)

— — ( 42,052 ) — — ( 42,052 )

Costs associated with the “at-the-market” (ATM) equity offering program — ( 38 ) — — — ( 38 )

Issuance of shares under incentive stock plans 760 19 — — — 19

Stock-based compensation — 2,636 — — — 2,636

Repurchase of common shares ( 569 ) ( 20 ) — — — ( 20 )

Adjustment of noncontrolling interests in the operating partnership — — 23,363 — — 23,363

Conversion of common units to common shares 100,902 3,696 — — — 3,696

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

Foreign currency translation adjustment — — — ( 24,065 ) ( 1,327 ) ( 25,392 )

Cash flow hedges — — — 21,619 ( 1,472 ) 20,147

Allocation of other comprehensive loss to noncontrolling interests in the operating partnership — — — 49 — 49

Distributions to noncontrolling interests in consolidated affiliates — — — — ( 9,789 ) ( 9,789 )

Balance, September 30, 2022 146,422,825 $ 1,430,622 $ 384,384 ($ 1,599 ) $ 11,256 $ 1,824,663

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

5 unchanged sentences

(Dollars in thousands)

Six Months Ended June 30,

Nine Months Ended September 30,

OPERATING ACTIVITIES

6 unchanged sentences

Amortization of losses from pension and postretirement plans 4 564

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

Timber write-offs resulting from casualty events 2,302 1,088

Other 7,822 ( 2,854 )

26 unchanged sentences

Balance, end of period $ 109,588 $ 279,520

Six Months Ended June 30,

Nine Months Ended September 30,

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

6 unchanged sentences

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.

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

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

8 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

8 unchanged sentences

OPERATING INCOME 35,356 40,903 66,081 121,689

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

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

Interest expense, net ( 12,598 ) ( 9,056 ) ( 36,755 ) ( 26,476 )

Interest and other miscellaneous income, net 529 1,252 21,725 990

INCOME BEFORE INCOME TAXES 23,287 33,099 51,051 96,203

2 unchanged sentences

NET INCOME 22,740 31,861 49,274 88,147

Net loss (income) attributable to noncontrolling interests in consolidated affiliates 245 ( 637 ) 1,281 ( 1,650 )

Net income attributable to noncontrolling interests in consolidated affiliates ( 3,183 ) ( 10,828 ) ( 1,902 ) ( 12,478 )

NET INCOME ATTRIBUTABLE TO RAYONIER, L.P.

11 unchanged sentences

Total other comprehensive income (loss) 2,968 ( 5,057 ) ( 10,344 ) 11,673

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.

COMPREHENSIVE INCOME 25,708 26,804 38,930 99,820

Comprehensive income attributable to noncontrolling interests in consolidated affiliates ( 2,906 ) ( 8,029 ) ( 884 ) ( 6,670 )

COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER, L.P.

UNITHOLDERS $ 22,802 $ 18,775 $ 38,046 $ 93,150

9 unchanged sentences

(Dollars in thousands)

June 30, 2023 December 31, 2022

September 30, 2023 December 31, 2022

CURRENT ASSETS

86 unchanged sentences

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

Net income 196 19,361 — 3,183 22,740

Distributions on units ($ 0.285 per unit)

( 432 ) ( 42,727 ) — — ( 43,159 )

Stock-based compensation 34 3,331 — — 3,365

Repurchase of units — ( 29 ) — — ( 29 )

Adjustment of Redeemable Operating Partnership Units 72 7,161 — — 7,233

Conversion of units into common shares 5 474 — — 479

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

Foreign currency translation adjustment — — ( 4,180 ) ( 233 ) ( 4,413 )

Cash flow hedges — — 7,423 ( 44 ) 7,379

Balance, September 30, 2023 $ 17,852 $ 1,767,335 $ 30,924 $ 16,201 $ 1,832,312

Units Accumulated

32 unchanged sentences

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

Net income 210 20,823 — 10,828 31,861

Distributions on units ($ 0.285 per unit)

( 430 ) ( 42,537 ) — — ( 42,967 )

Costs associated with the “at-the-market” (ATM) equity offering program ( 1 ) ( 37 ) — — ( 38 )

Issuance of units under incentive stock plans — 19 — — 19

Stock-based compensation 27 2,609 — — 2,636

Repurchase of units — ( 20 ) — — ( 20 )

Adjustment of Redeemable Operating Partnership Units 239 23,633 — — 23,872

Conversion of units into common shares 37 3,659 — — 3,696

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

Foreign currency translation adjustment — — ( 24,065 ) ( 1,327 ) ( 25,392 )

Cash flow hedges — — 21,619 ( 1,472 ) 20,147

Distributions to noncontrolling interests in consolidated affiliates — — — ( 9,789 ) ( 9,789 )

Balance, September 30, 2022 $ 18,113 $ 1,793,275 $ 2,019 $ 11,256 $ 1,824,663

See Notes to Consolidated Financial Statements.

3 unchanged sentences

(Dollars in thousands)

Six Months Ended June 30,

Nine Months Ended September 30,

OPERATING ACTIVITIES

6 unchanged sentences

Amortization of losses from pension and postretirement plans 4 564

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

Timber write-offs resulting from casualty events 2,302 1,088

Other 7,822 ( 2,854 )

25 unchanged sentences

Balance, end of period $ 109,588 $ 279,520

Six Months Ended June 30,

Nine Months Ended September 30,

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

6 unchanged sentences

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.

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

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

2 unchanged sentences

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 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 of September 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.

15 unchanged sentences

There have been no recently adopted or pending accounting pronouncements which are applicable or are expected to have a material impact on our consolidated financial condition, results of operations, or cash flows.

SUBSEQUENT EVENTS

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

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

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

The margins are set for the term of the facility.

See Note 6 — Debt for additional information.

RAYONIER INC.

4 unchanged sentences

(Dollar amounts in thousands unless otherwise stated)

SUBSEQUENT EVENTS

Announcement of Oregon Disposition

As disclosed in our Current Report on Form 8-K filed with the SEC on November 2, 2023, we entered into an agreement for the sale of approximately 55,000 acres of timberland in Oregon to Manulife Investment Management on behalf of clients for $ 242 million (~$ 4,400 per acre).

The transaction is expected to close in the fourth quarter of 2023, and $ 150 million of the proceeds are expected to be used to repay the unhedged portion of our 2022 Incremental Term Loan borrowings.

See Note 6 – Debt for additional information.

Defined Benefit Pension Plan Distributions

In connection with the termination of the Company’s Defined Benefit Plan (“the Plan”), payments were disbursed to plan participants who chose the lump sum distribution option on October 31, 2023.

The lump sum disbursements were sourced from Plan assets.

We expect to make cash contributions to fund the Defined Benefit Plan on a plan termination basis in 2024.

See Note 15 – Employee Benefit Plans for additional information.

SEGMENT AND GEOGRAPHICAL INFORMATION

5 unchanged sentences

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,

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

Three Months Ended September 30, Nine Months Ended September 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 June 30, Six Months Ended June 30,

RAYONIER INC.

AND SUBSIDIARIES

RAYONIER, L.P.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollar amounts in thousands unless otherwise stated)

Three Months Ended September 30, Nine Months Ended September 30,

OPERATING INCOME 2023 2022 2023 2022

Southern Timber $ 18,634 $ 22,474 $ 62,565 $ 76,883

Pacific Northwest Timber ( 2,376 ) 2,943 ( 5,919 ) 9,550

New Zealand Timber (a) 2,373 7,981 1,710 13,373

Real Estate 8,649 11,023 9,532 21,204

Pacific Northwest Timber (a) ( 557 ) 2,179 ( 6,475 ) 11,729

New Zealand Timber (b) 17,555 9,280 19,265 22,653

Real Estate (c) 9,187 15,749 18,720 36,953

Trading ( 52 ) 177 356 84

1 unchanged sentence

Total Operating Income 35,356 40,903 66,081 121,689

Unallocated interest expense and other (b) ( 813 ) ( 8,877 ) ( 2,961 ) ( 17,682 )

Unallocated interest expense and other (d) ( 12,069 ) ( 7,804 ) ( 15,030 ) ( 25,486 )

Total Income before Income Taxes $ 23,287 $ 33,099 $ 51,051 $ 96,203

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

(a) The three and nine months ended September 30, 2022 include $ 1.1 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 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.

AND SUBSIDIARIES

RAYONIER, L.P.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollar amounts in thousands unless otherwise stated)

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

(b) The nine months ended September 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.”

(c) The three and nine months ended September 30, 2022 include an $ 11.5 million gain associated with the multi-family apartment complex sale attributable to noncontrolling interests (“NCI”).

The gain associated with the multi-family apartment complex sale attributable to noncontrolling interests are recorded within the Consolidated Statements of Income and Comprehensive Income under the caption “Other operating (expense) income, net.”

(d) The nine months ended September 30, 2023 includes $ 20.5 million of net recoveries associated with legal settlements.

Three Months Ended September 30, Nine Months Ended September 30,

DEPRECIATION, DEPLETION AND AMORTIZATION 2023 2022 2023 2022

5 unchanged sentences

Total $ 36,967 $ 31,051 $ 114,281 $ 114,221

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

Three Months Ended September 30, Nine Months Ended September 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”).

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.

Unsatisfied performance obligations as of September 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, $ 23.8 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

RAYONIER INC.

AND SUBSIDIARIES

RAYONIER, L.P.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollar amounts in thousands unless otherwise stated)

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.

4 unchanged sentences

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

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

June 30, 2023 December 31, 2022 Balance Sheet Location

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

September 30, 2023 December 31, 2022 Balance Sheet Location

Contract assets

6 unchanged sentences

(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,

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

Three Months Ended September 30, Nine Months Ended September 30,

2023 2022 2023 2022

7 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 and six months ended June 30, 2023 and 2022:

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

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

June 30, 2023

September 30, 2023

Pulpwood $ 25,514 $ 1,440 $ 6,507 — $ 447 — $ 33,908

7 unchanged sentences

Improved Development — — — 3,120 — — 3,120

Unimproved Development — — — 114 — — 114

Rural — — — 20,461 — — 20,461

7 unchanged sentences

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

June 30, 2022

September 30, 2022

Pulpwood $ 32,564 $ 2,989 $ 7,645 — $ 1,112 — $ 44,310

21 unchanged sentences

(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

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

September 30, 2023

Pulpwood $ 76,152 $ 7,358 $ 20,953 — $ 3,328 — $ 107,791

7 unchanged sentences

Improved Development — — — 20,155 — — 20,155

Unimproved Development — — — 114 — — 114

Rural — — — 42,587 — — 42,587

6 unchanged sentences

Total Revenue $ 204,125 $ 96,061 $ 175,438 $ 79,492 $ 34,767 ($ 357 ) $ 589,526

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

June 30, 2022

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

September 30, 2022

Pulpwood $ 100,945 $ 9,478 $ 26,091 — $ 5,636 — $ 142,150

22 unchanged sentences

(Dollar amounts in thousands unless otherwise stated)

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

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

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

June 30, 2023

September 30, 2023

Stumpage Pay-as-Cut $ 25,454 — — — $ 25,454

5 unchanged sentences

Total Timber Sales $ 54,131 $ 27,841 $ 54,863 $ 6,401 $ 143,236

June 30, 2022

September 30, 2022

Stumpage Pay-as-Cut $ 21,111 — — — $ 21,111

11 unchanged sentences

(Dollar amounts in thousands unless otherwise stated)

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

June 30, 2023

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

September 30, 2023

Stumpage Pay-as-Cut $ 86,424 — — — $ 86,424

5 unchanged sentences

Total Timber Sales $ 174,984 $ 91,321 $ 158,821 $ 33,458 $ 458,584

June 30, 2022

September 30, 2022

Stumpage Pay-as-Cut $ 78,643 — — — $ 78,643

26 unchanged sentences

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

Three Months Ended June 30, Six Months Ended

Three Months Ended September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

21 unchanged sentences

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

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

Three Months Ended September 30, Nine Months Ended September 30,

2023 2022 2023 2022

2 unchanged sentences

Net income attributable to noncontrolling interests in the operating partnership ( 320 ) ( 455 ) ( 811 ) ( 1,670 )

Net loss (income) attributable to noncontrolling interests in consolidated affiliates 245 ( 637 ) 1,281 ( 1,650 )

Net income attributable to noncontrolling interests in consolidated affiliates ( 3,183 ) ( 10,828 ) ( 1,902 ) ( 12,478 )

Net income attributable to Rayonier Inc.

5 unchanged sentences

Net Income $ 22,740 $ 31,861 $ 49,274 $ 88,147

Net loss (income) attributable to noncontrolling interests in consolidated affiliates 245 ( 637 ) 1,281 ( 1,650 )

Net income attributable to noncontrolling interests in consolidated affiliates ( 3,183 ) ( 10,828 ) ( 1,902 ) ( 12,478 )

Net income attributable to Rayonier Inc., before net income attributable to noncontrolling interests in the operating partnership $ 19,557 $ 21,033 $ 47,372 $ 75,669

7 unchanged sentences

$ 0.13 $ 0.14 $ 0.31 $ 0.50

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

Three Months Ended September 30, Nine Months Ended September 30,

2023 2022 2023 2022

9 unchanged sentences

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

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

Three Months Ended September 30, Nine Months Ended September 30,

2023 2022 2023 2022

1 unchanged sentence

Net Income $ 22,740 $ 31,861 $ 49,274 $ 88,147

Net loss (income) attributable to noncontrolling interests in consolidated affiliates 245 ( 637 ) 1,281 ( 1,650 )

Net income attributable to noncontrolling interests in consolidated affiliates ( 3,183 ) ( 10,828 ) ( 1,902 ) ( 12,478 )

Net income available to unitholders $ 19,557 $ 21,033 $ 47,372 $ 75,669

4 unchanged sentences

Net Income $ 22,740 $ 31,861 $ 49,274 $ 88,147

Net loss (income) attributable to noncontrolling interests in consolidated affiliates 245 ( 637 ) 1,281 ( 1,650 )

Net income attributable to noncontrolling interests in consolidated affiliates ( 3,183 ) ( 10,828 ) ( 1,902 ) ( 12,478 )

Net income available to unitholders $ 19,557 $ 21,033 $ 47,372 $ 75,669

6 unchanged sentences

$ 0.13 $ 0.14 $ 0.31 $ 0.50

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

Three Months Ended September 30, Nine Months Ended September 30,

2023 2022 2023 2022

8 unchanged sentences

(Dollar amounts in thousands unless otherwise stated)

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

June 30, 2023

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

September 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 6.76 % 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

2015 Term Loan borrowings due 2028 at a variable interest rate of 7.00 %

2022 Incremental Term Loan borrowings due 2027 at a variable interest rate of 7.00 %

2016 Incremental Term Loan borrowings due 2026 at a variable interest rate of 7.05 %

2021 Incremental Term Loan borrowings due 2029 at a variable interest rate of 6.95 %

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

6 unchanged sentences

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

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

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

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

15 unchanged sentences

2023 DEBT ACTIVITY

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.

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

At September 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.

See Note 1 - Basis of Presentation for information regarding subsequent events related to our 2022 Incremental Term Loan borrowings.

New Zealand Debt

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

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

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

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

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

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

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

DEBT COVENANTS

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

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

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

Covenant Requirement Actual Ratio Favorable

1 unchanged sentence

Covenant debt to covenant net worth plus covenant debt shall not exceed 65 % 46 % 19 %

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

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

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

At September 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

RAYONIER INC.

4 unchanged sentences

(Dollar amounts in thousands unless otherwise stated)

FOREIGN CURRENCY EXCHANGE AND OPTION CONTRACTS

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.

“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.

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

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

As of September 30, 2023, foreign currency exchange contracts and foreign currency option contracts had maturity dates through September 2026 and July 2026, respectively.

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

We may de-designate these cash flow hedge relationships in advance or at the occurrence of the forecasted transaction.

The portion of gains or losses on the derivative instrument previously AOCI for de-designated hedges remains in AOCI until the forecasted transaction affects earnings.

The portion of gains or losses on the derivative instrument previously in AOCI for de-designated hedges remains in AOCI until the forecasted transaction affects earnings.

Changes in the value of derivative instruments after de-designation are recorded in earnings.

6 unchanged sentences

INTEREST RATE SWAPS

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

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

Outstanding Interest Rate Swaps (a)

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FORWARD-STARTING INTEREST RATE SWAPS

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

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

RAYONIER INC.

4 unchanged sentences

(Dollar amounts in thousands unless otherwise stated)

FORWARD-STARTING INTEREST RATE SWAPS

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

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

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

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

Outstanding Forward-Starting Interest Rate Swaps (a)

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

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

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 nine months ended September 30, 2023 and 2022:

Three Months Ended

September 30,

Income Statement Location 2023 2022

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Interest expense, net ( 4,810 ) ( 62 )

Six Months Ended

Nine Months Ended

September 30,

Income Statement Location 2023 2022

6 unchanged sentences

Interest expense, net ( 12,587 ) 4,555

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.

During the next 12 months, the amount of the September 30, 2023 AOCI balance, net of tax, expected to be reclassified into earnings is a gain of approximate ly $ 24.7 million.

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

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(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

June 30, 2023 December 31, 2022

September 30, 2023 December 31, 2022

Derivatives designated as cash flow hedges:

3 unchanged sentences

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

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.

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

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

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

June 30, 2023 December 31, 2022

September 30, 2023 December 31, 2022

Derivatives designated as cash flow hedges:

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

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

June 30, 2023 December 31, 2022

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

September 30, 2023 December 31, 2022

Asset (Liability) (a) Carrying

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Noncontrolling interests in the operating partnership (e) 69,820 — 69,820 105,763 — 105,763

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

(a) We did not have Level 3 assets or liabilities at September 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.

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

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

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

Port Gamble, WA

3 unchanged sentences

Expenditures charged to liabilities ( 304 )

Decrease to liabilities (a) ( 20 )

Total Balance at June 30, 2023

Increase to liabilities (a) 411

Total Balance at September 30, 2023

Current portion ( 6,689 )

Non-current portion at June 30, 2023

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

Non-current portion at September 30, 2023

(a) Reflects revised environmental and NRD cost estimates recorded during the nine months ended September 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 June 30, 2023, the following financial guarantees were outstanding:

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

Financial Commitments (a) Maximum Potential

6 unchanged sentences

The remaining letters of credit support various insurance related agreements, primarily workers’ compensation.

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

These letters of credit will expire at various dates during 2023 and 2024 and will be renewed as required.

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

13 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 June 30, 2023 are shown below:

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

Higher and Better Use Timberlands and Real Estate Development Investments

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Intersegment transfers 554 — 554

Total Balance at June 30, 2023

Total Balance at September 30, 2023

88,805 43,862 132,667

Current portion (a) ( 1,601 ) ( 24,409 ) ( 26,010 )

Non-current portion at June 30, 2023

Non-current portion at September 30, 2023

$ 87,204 $ 19,453 $ 106,657

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

June 30, 2023 December 31, 2022

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

September 30, 2023 December 31, 2022

Finished goods inventory

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

RAYONIER INC.

AND SUBSIDIARIES

RAYONIER, L.P.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollar amounts in thousands unless otherwise stated)

OTHER OPERATING (EXPENSE) INCOME, NET

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

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

Three Months Ended September 30, Nine Months Ended September 30,

2023 2022 2023 2022

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

Loss on foreign currency remeasurement, net of cash flow hedges ($ 1,555 ) ($ 1,158 ) ($ 5,713 ) ($ 481 )

Gain on sale or disposal of property and equipment — 9 37 40

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

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

Equity income related to Bainbridge Landing LLC joint venture (a) — 15,848 — 15,477

Miscellaneous (expense) income, net ( 99 ) ( 118 ) 105 ( 638 )

Total ($ 1,654 ) $ 14,581 ($ 5,571 ) $ 14,398

(a) The three and nine months ended September 30, 2022 include $ 16.0 million of equity income from the sale of a multi-family apartment complex in Bainbridge Island, Washington.

As the equity investment was co-owned with outside investors, $ 4.5 million of the equity income was attributable to Rayonier.

RAYONIER INC.

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The Defined Benefit Plan was terminated on February 28, 2023.

In conjunction with the termination of the Defined Benefit Plan, we also plan to terminate the unfunded plan and distribute all benefits in accordance with Section 409A of the Internal Revenue Code.

On July 20, 2023, the Rayonier Board of Directors approved the resolution to terminate the unfunded plan and will distribute all benefits in accordance with Section 409A of the Internal Revenue Code.

The unfunded plan was terminated on July 31, 2023.

We expect to recognize pre-tax non-cash pension settlement charges related to the actuarial losses currently in AOCI upon settlement of the obligations of the Defined Benefit and Excess Benefit Plans.

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The settlement is expected to be completed by the end of Q2 2024.

The Excess Benefit Plan will be settled entirely with lump sum payments upon termination with expected cash contributions in 2024 of approximately $ 1.3 million.

The Excess Benefit Plan will be settled entirely with lump sum payments with expected cash contributions in 2024 of approximately $ 1.3 million.

Projected cash contributions are an estimate, as actual amounts will be dependent upon the nature and timing of participant settlements and interest rates, as well as prevailing market conditions.

See Note 1 – Basis of Presentation for information regarding subsequent events related to the Defined Benefit Pension Plan.

The net pension and postretirement benefit (credits) costs that have been recorded are shown in the following table:

1 unchanged sentence

Three Months Ended

June 30, Three Months Ended

September 30, Three Months Ended

September 30,

2023 2022 2023 2022

Service cost Selling and general expenses — — $ 1 $ 2

Interest cost Interest and other miscellaneous income (expense), net 844 609 17 13

Expected return on plan assets (a) Interest and other miscellaneous income (expense), net ( 887 ) ( 872 ) — —

Amortization of losses Interest and other miscellaneous income (expense), net 1 184 — 4

Interest cost Interest and other miscellaneous income, net 844 609 17 13

Expected return on plan assets (a) Interest and other miscellaneous income, net ( 887 ) ( 872 ) — —

Amortization of losses Interest and other miscellaneous income, net 1 184 — 4

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

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

Six Months Ended

June 30, Six Months Ended

Nine Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

Service cost Selling and general expenses — — $ 3 $ 5

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

Interest cost Interest and other miscellaneous income, net 2,533 1,826 52 39

Expected return on plan assets (a) Interest and other miscellaneous income, net ( 2,663 ) ( 2,615 ) — —

Amortization of losses Interest and other miscellaneous income, net 4 553 — 11

Net periodic benefit (credit) cost ($ 126 ) ($ 236 ) $ 55 $ 55

8 unchanged sentences

federal or state income tax.

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

As of September 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

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

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

Six Months Ended

Nine Months Ended

September 30,

Annualized effective tax rate after discrete items 3.1 % 7.9 %

6 unchanged sentences

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

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

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

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

8 unchanged sentences

($ 18,067 ) $ 1,321 $ 67,204 ($ 10,209 ) $ 40,249 ($ 4,436 ) $ 35,813

Other comprehensive (loss) income before reclassifications ( 12,342 ) — 9,792 (a) — ( 2,550 ) 88 ( 2,462 )

Other comprehensive income (loss) before reclassifications ( 16,522 ) — 23,131 (a) — 6,609 ( 62 ) 6,547

Amounts reclassified from accumulated other comprehensive income — — ( 15,938 ) 4 (b) ( 15,934 ) 1,078 ( 14,856 )

1 unchanged sentence

Balance as of

June 30, 2023

September 30, 2023

($ 34,589 ) $ 1,321 $ 74,397 ($ 10,205 ) $ 30,924 ($ 3,420 ) $ 27,504

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

(a) The nine months ended September 30, 2023 includes $ 20.4 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.

2 unchanged sentences

See Note 15 — Employee Benefit Plans for additional information.

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

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

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

June 30, 2023 June 30, 2022

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

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

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

Realized (gain) loss on interest rate contracts ( 7,777 ) 4,617 Interest expense

Income tax effect from net gain (loss) on foreign currency contracts 875 ( 15 ) Income tax expense

September 30, 2023 September 30, 2022

Realized gain on foreign currency exchange contracts ($ 5,801 ) ($ 2,598 ) Other operating expense (income), net

Realized gain on foreign currency option contracts ( 244 ) — Other operating expense (income), net

Noncontrolling interests 1,391 598 Comprehensive income attributable to noncontrolling interests

Realized (gain) loss on interest rate contracts ( 12,587 ) 4,555 Interest expense, net

Income tax effect from net gain on foreign currency contracts 1,303 560 Income tax expense

Net (gain) loss on cash flow hedges reclassified from accumulated other comprehensive income ($ 15,938 ) $ 3,115

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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 six months ended June 30, 2023 and 2022:

Six Months Ended June 30,

Nine Months Ended September 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 June 30, 2023 and December 31, 2022, the basis in properties meeting this classification was $ 4.2 million and $ 0.7 million, respectively.

As of September 30, 2023 and December 31, 2022, the basis in properties meeting this classification was $ 18.3 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