What changed in this filing

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Item 1. Financial Statements

2024-08-08 compared with 2024-05-03 · 328 added, 148 removed, 1020 unchanged (32% of the section changed)

6 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2024 2023 2024 2023

SALES ( NOTE 3 )

3 unchanged sentences

Selling and general expenses ( 20,603 ) ( 18,952 ) ( 39,581 ) ( 35,729 )

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

Other operating expense, net ( Note 14 )

( 1,894 ) ( 1,401 ) ( 1,623 ) ( 3,917 )

2 unchanged sentences

Interest expense, net ( 9,811 ) ( 12,457 ) ( 19,555 ) ( 24,158 )

Interest and other miscellaneous (expense) income, net ( 4,992 ) 9,554

Interest and other miscellaneous income (expense), net 905 11,644 ( 4,087 ) 21,197

INCOME BEFORE INCOME TAXES 3,535 19,289 5,009 27,764

Income tax benefit (expense) ( Note 16 )

Income tax (expense) benefit ( Note 16 )

( 500 ) ( 193 ) 332 ( 1,230 )

3 unchanged sentences

NET INCOME ATTRIBUTABLE TO RAYONIER INC.

OTHER COMPREHENSIVE (LOSS) INCOME

1,903 19,023 3,260 27,323

OTHER COMPREHENSIVE INCOME (LOSS)

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

3 unchanged sentences

Pension and postretirement benefit plans, net of income tax effect of $ 0 , $ 0 , $ 1,222 and $ 0

Total other comprehensive loss ( 4,423 ) ( 16,051 )

COMPREHENSIVE LOSS ( 2,117 ) ( 8,614 )

Comprehensive loss attributable to noncontrolling interests in the operating partnership 17 156

Comprehensive loss attributable to noncontrolling interests in consolidated affiliates 947 1,032

COMPREHENSIVE LOSS ATTRIBUTABLE TO RAYONIER INC.

Total other comprehensive income (loss) 6,212 2,741 1,789 ( 13,312 )

COMPREHENSIVE INCOME 9,247 21,837 7,130 13,222

Comprehensive income attributable to noncontrolling interests in the Operating Partnership ( 100 ) ( 375 ) ( 83 ) ( 220 )

Comprehensive (income) loss attributable to noncontrolling interests in consolidated affiliates ( 1,920 ) 989 ( 972 ) 2,023

COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER INC.

$ 7,227 $ 22,451 $ 6,075 $ 15,025

9 unchanged sentences

(Dollars in thousands)

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

CURRENT ASSETS

3 unchanged sentences

Other receivables 8,201 11,517

Inventory ( N ote 13 )

Inventory ( Note 13 )

23,887 31,017

25 unchanged sentences

Accrued interest 6,298 7,094

Pension and other postretirement benefits ( N ote 15 )

Pension and other postretirement benefits ( Note 15 )

Dividend and distribution payable — 30,148

48 unchanged sentences

Balance, March 31, 2024 148,649,321 $ 1,512,339 $ 296,533 $ 22,370 $ 14,405 $ 1,845,647

Net income — — 1,929 — 1,106 3,035

Net income attributable to noncontrolling interests in the Operating Partnership — — ( 26 ) — — ( 26 )

Dividends ($ 0.285 per share) (a)

— — ( 42,517 ) — — ( 42,517 )

Issuance of shares under incentive stock plans 396,849 — — — — —

Stock-based compensation — 4,904 — — — 4,904

Repurchase of common shares ( 130,460 ) ( 4,132 ) — — — ( 4,132 )

Adjustment of noncontrolling interests in the Operating Partnership — — 8,093 — — 8,093

Conversion of units into common shares 63,708 1,915 — — — 1,915

Foreign currency translation adjustment — — — 5,728 286 6,014

Cash flow hedges — — — ( 330 ) 528 198

Allocation of other comprehensive income to noncontrolling interests in the Operating Partnership — — — ( 19 ) — ( 19 )

Distributions to noncontrolling interests in consolidated affiliates — — — — ( 2,047 ) ( 2,047 )

Balance, June 30, 2024 148,979,418 $ 1,515,026 $ 264,012 $ 27,749 $ 14,278 $ 1,821,065

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

25 unchanged sentences

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

Net income (loss) — — 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

Pension and postretirement benefit plans — — — 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.

5 unchanged sentences

(Dollars in thousands)

Three Months Ended March 31,

Six Months Ended June 30,

OPERATING ACTIVITIES

32 unchanged sentences

Balance, end of period $ 142,583 $ 93,366

(a) The three months ended March 31, 2024 includes an additional cash dividend of $ 0.20 per common share, totaling $ 29.8 million.

(a) The six months ended June 30, 2024 includes an additional cash dividend of $ 0.20 per common share, totaling $ 29.8 million.

The additional dividend was paid on January 12, 2024, to shareholders of record on December 29, 2023.

(b) The three months ended March 31, 2024 includes an additional cash distribution of $ 0.20 per operating partnership unit, totaling $ 0.5 million.

(b) The six months ended June 30, 2024 includes an additional cash distribution of $ 0.20 per Redeemable Operating Partnership Unit, totaling $ 0.5 million.

The additional distribution was paid on January 12, 2024, to holders of record on December 29, 2023.

Three Months Ended March 31,

Six Months Ended June 30,

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

4 unchanged sentences

Capital assets purchased on account 4,766 5,303

(a) Interest paid is presented net of patronage paymen ts receive d of $ 8.1 million a n d $ 6.1 million for the three months ended March 31, 2024 and March 31, 2023, respectively.

(a) Interest paid is presented net of patronage paymen ts receive d of $ 8.3 million a n d $ 6.2 million for the six months ended June 30, 2024 and June 30, 2023, respectively.

For additional information on patronage payments, see Note 7 — Debt in the 2023 Form 10-K.

6 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2024 2023 2024 2023

SALES ( NOTE 3 )

3 unchanged sentences

Selling and general expenses ( 20,603 ) ( 18,952 ) ( 39,581 ) ( 35,729 )

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

Other operating expense, net ( Note 14 )

( 1,894 ) ( 1,401 ) ( 1,623 ) ( 3,917 )

2 unchanged sentences

Interest expense, net ( 9,811 ) ( 12,457 ) ( 19,555 ) ( 24,158 )

Interest and other miscellaneous (expense) income), net ( 4,992 ) 9,554

Interest and other miscellaneous income (expense), net 905 11,644 ( 4,087 ) 21,197

INCOME BEFORE INCOME TAXES 3,535 19,289 5,009 27,764

Income tax benefit (expense) ( Note 16 )

Income tax (expense) benefit ( Note 16 )

( 500 ) ( 193 ) 332 ( 1,230 )

7 unchanged sentences

Net income attributable to unitholders 1,929 19,341 3,306 27,815

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

Pension and postretirement benefit plans, net of income tax expense of $ 0 , $ 0 , $ 1,222 and $ 0

Total other comprehensive loss ( 4,423 ) ( 16,051 )

COMPREHENSIVE LOSS ( 2,117 ) ( 8,614 )

Comprehensive loss attributable to noncontrolling interests in consolidated affiliates 947 1,032

COMPREHENSIVE LOSS ATTRIBUTABLE TO RAYONIER, L.P.

Total other comprehensive income (loss) 6,212 2,741 1,789 ( 13,312 )

COMPREHENSIVE INCOME 9,247 21,837 7,130 13,222

Comprehensive (income) loss attributable to noncontrolling interests in consolidated affiliates ( 1,920 ) 989 ( 972 ) 2,023

COMPREHENSIVE INCOME ATTRIBUTABLE TO RAYONIER, L.P.

UNITHOLDERS $ 7,327 $ 22,826 $ 6,158 $ 15,245

9 unchanged sentences

(Dollars in thousands)

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

CURRENT ASSETS

38 unchanged sentences

1,363,651 1,365,773

PENSION AND OTHER POSTRETIREMENT BENEFITS ( NOTE 15 )

PENSION AND OTHER POSTRETIREMENT BENEFITS, NON-CURRENT ( NOTE 15 )

LONG-TERM LEASE LIABILITY 84,140 87,684

34 unchanged sentences

Balance, March 31, 2024 $ 18,057 $ 1,787,713 $ 25,472 $ 14,405 $ 1,845,647

Net income 19 1,910 — 1,106 3,035

Distributions on units ($ 0.285 per unit)

( 430 ) ( 42,665 ) — — ( 43,095 )

Stock-based compensation 49 4,855 — — 4,904

Repurchase of units ( 41 ) ( 4,091 ) — — ( 4,132 )

Adjustment of Redeemable Operating Partnership Units 86 8,540 — — 8,626

Conversion of units into common shares 19 1,896 — — 1,915

Foreign currency translation adjustment — — 5,728 286 6,014

Cash flow hedges — — ( 330 ) 528 198

Distributions to noncontrolling interests in consolidated affiliates — — — ( 2,047 ) ( 2,047 )

Balance, June 30, 2024 $ 17,759 $ 1,758,158 $ 30,870 $ 14,278 $ 1,821,065

Units Accumulated

15 unchanged sentences

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

Net income (loss) 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

Pension and postretirement benefit plans — — 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

See Notes to Consolidated Financial Statements.

3 unchanged sentences

(Dollars in thousands)

Three Months Ended March 31,

Six Months Ended June 30,

OPERATING ACTIVITIES

31 unchanged sentences

Balance, end of period $ 142,583 $ 93,366

(a) The three months ended March 31, 2024 includes an additional cash distribution of $ .20 per operating partnership unit, totaling $ 30.2 million.

(a) The six months ended June 30, 2024 includes an additional cash distribution of $ .20 per Redeemable Operating Partnership Unit, totaling $ 30.2 million.

The additional distribution was paid on January 12, 2024, to holders of record on December 29, 2023.

Three Months Ended March 31,

Six Months Ended June 30,

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

4 unchanged sentences

Capital assets purchased on account 4,766 5,303

(a) Interest paid is presented net of patronage paymen ts received of $ 8.1 million an d $ 6.1 million for the three months ended March 31, 2024 and March 31, 2023, respectively.

(a) Interest paid is presented net of patronage paymen ts received of $ 8.3 million an d $ 6.2 million for the six months ended June 30, 2024 and June 30, 2023, respectively.

For additional information on patronage payments, see Note 7 — Debt in the 2023 Form 10-K.

15 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, 2023, as filed with the SEC (the “2023 Form 10-K”).

As of March 31, 2024, the Company owned a 98.6 % interest in the Operating Partnership, with the remaining 1.4 % interest owned by limited partners of the Operating Partnership.

As of June 30, 2024, the Company owned a 98.7 % interest in the Operating Partnership, with the remaining 1.3 % interest owned by limited partners of the Operating Partnership.

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

7 unchanged sentences

The pronouncement is effective for annual reporting periods in fiscal years beginning after December 15, 2023, and for interim periods in fiscal years beginning after December 15, 2024.

We do not expect the adoption of this pronouncement to impact our consolidated financial statements.

We do not expect the adoption of this pronouncement to impact our consolidated financial statements as this is a disclosure only ASU.

In December 2023, the FASB issued ASU No.

3 unchanged sentences

Early adoption and retrospective application are permitted.

We do not expect the adoption of this pronouncement to impact our consolidated financial statements.

We do not expect the adoption of this pronouncement to impact our consolidated financial statements as this is a disclosure only ASU.

Recent accounting pronouncements adopted or pending adoption not discussed above are either not applicable or are not expected to have a material impact on our consolidated financial condition, results of operations, or cash flows.

SUBSEQUENT EVENTS

We have evaluated events occurring from March 31, 2024 to the date of issuance of these Consolidated Financial Statements for potential recognition or disclosure in the consolidated financial statements.

We have evaluated events occurring from June 30, 2024 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.

SEGMENT AND GEOGRAPHICAL INFORMATION

Sales between operating segments are made based on estimated fair market value, and intercompany sales, purchases and profits (losses) are eliminated in consolidation.

We evaluate financial performance based on segment operating income and Adjusted Earnings Before Interest, Taxes, Depreciation, Depletion and Amortization

RAYONIER INC.

4 unchanged sentences

(Dollar amounts in thousands unless otherwise stated)

(“Adjusted EBITDA”).

SEGMENT AND GEOGRAPHICAL INFORMATION

Sales between operating segments are made based on estimated fair market value, and intercompany sales, purchases and profits (losses) are eliminated in consolidation.

We evaluate financial performance based on segment operating income and Adjusted Earnings Before Interest, Taxes, Depreciation, Depletion and Amortization (“Adjusted EBITDA”).

Asset information is not reported by segment, as we do not produce asset information by segment internally.

1 unchanged sentence

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

These items, which include interest expense, interest and miscellaneous (expense) income 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 months ended March 31, 2024 and 2023:

Three Months Ended March 31,

These items, which include interest expense, interest and miscellaneous income (expense) and income tax (expense) benefit, 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, 2024 and 2023:

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

SALES 2024 2023 2024 2023

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 (LOSS) 2024 2023 2024 2023

4 unchanged sentences

Trading 137 67 178 409

Corporate and Other ( 9,778 ) ( 8,619 )

Corporate and Other (b) ( 12,020 ) ( 10,319 ) ( 21,797 ) ( 18,938 )

Total Operating Income 12,441 20,102 28,651 30,725

Unallocated interest expense and other (b) ( 14,736 ) ( 2,146 )

Unallocated interest expense and other (c) ( 8,906 ) ( 813 ) ( 23,642 ) ( 2,961 )

Total Income before Income Taxes $ 3,535 $ 19,289 $ 5,009 $ 27,764

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

(a) The six months ended June 30, 2023 includes $ 2.3 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 (Loss) under the caption “Cost of sales.”

(b) The three months ended March 31, 2024 includes $ 5.7 million of pension settlement charges and $ 1.3 million of net costs associated with legal settlements.

The three months ended March 31, 2023 includes $ 9.1 million of net recoveries associated with legal settlements.

Three Months Ended March 31,

(b) The three and six months ended June 30, 2024 include $ 0.7 million of costs related to disposition initiatives.

Costs related to disposition initiatives are recorded within the Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Other operating expense, net.”

The six months ended June 30, 2024 includes $ 5.7 million of pension settlement charges and $ 2.4 million of net costs associated with legal settlements.

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.

Net costs (recoveries) associated with legal settlements and pension settlement charges are recorded within the Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Interest and other miscellaneous income (expense), net.”

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,

DEPRECIATION, DEPLETION AND AMORTIZATION 2024 2023 2024 2023

5 unchanged sentences

Total $ 36,094 $ 39,715 $ 73,177 $ 77,314

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

NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT 2024 2023 2024 2023

Real Estate $ 6,419 $ 9,395 $ 9,372 $ 13,603

Total $ 6,419 $ 9,395 $ 9,372 $ 13,603

RAYONIER INC.

4 unchanged sentences

(Dollar amounts in thousands unless otherwise stated)

Three Months Ended March 31,

NON-CASH COST OF LAND AND IMPROVED DEVELOPMENT 2024 2023

Real Estate $ 2,953 $ 4,208

Total $ 2,953 $ 4,208

PERFORMANCE OBLIGATIONS

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

Unsatisfied performance obligations as of March 31, 2024 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.

Unsatisfied performance obligations as of June 30, 2024 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, $ 34.0 million is expected to be recognized within the next twelve months , with the remaining $ 15.2 million expected to be recognized thereafter as we satisfy our performance obligations.

5 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 March 31, 2024 and December 31, 2023:

March 31, 2024 December 31, 2023 Balance Sheet Location

The following table contains contract balances recorded in the Consolidated Balance Sheets at June 30, 2024 and December 31, 2023:

June 30, 2024 December 31, 2023 Balance Sheet Location

Contract assets

4 unchanged sentences

(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 current portion of a carbon capture and storage contract entered into in the first quarter of 2024, partially offset by the satisfaction of post-closing obligations on real estate sales and the timing of renewals of hunting 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 2024.

The following table summarizes revenue recognized during the three months ended March 31, 2024 and 2023 that was included in the contract liability balance at the beginning of each year:

Three Months Ended March 31,

(b) The increase in deferred revenue, current is driven by the timing of renewals of hunting contracts and the current portion of carbon capture and storage contracts entered into during 2024, partially offset by the satisfaction of post-closing obligations on real estate sales.

(c) The increase in deferred revenue, non-current is primarily driven by carbon capture and storage contracts entered into during 2024.

The following table summarizes revenue recognized during the three and six months ended June 30, 2024 and 2023 that was included in the contract liability balance at the beginning of each year:

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

2024 2023 2024 2023

Revenue recognized from contract liability balance at the beginning of the year (a) $ 8,281 $ 6,335 $ 18,529 $ 17,735

(a) Revenue recognized was primarily from hunting licenses, the use of advances on pay-as-cut timber sales and the satisfaction of post closing obligations on real estate sales.

(a) Revenue recognized was primarily from hunting licenses, carbon capture and storage (“CCS”), the use of advances on pay-as-cut timber sales, and the satisfaction of post closing obligations on real estate sales.

RAYONIER INC.

4 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, 2024 and 2023:

The following tables present our revenue from contracts with customers disaggregated by product type for the three and six months ended June 30, 2024 and 2023:

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

March 31, 2024

June 30, 2024

Pulpwood $ 24,027 $ 1,461 $ 9,052 — $ 579 — $ 35,119

17 unchanged sentences

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

16 unchanged sentences

Total Revenue $ 68,310 $ 32,317 $ 60,898 $ 32,041 $ 15,415 ($ 116 ) $ 208,865

(a) Consists of sales from carbon capture and storage (“CCS”), solar and wind energy contracts.

(a) Consists of sales from carbon capture and storage (“CCS”), solar and wind energy contracts and conservation easements for habitat protection.

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

5 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, 2024 and 2023:

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

June 30, 2024

Pulpwood $ 49,958 $ 3,012 $ 16,806 — $ 1,717 — $ 71,493

Sawtimber 58,940 44,116 74,516 — 14,568 — 192,140

Hardwood 1,867 — — — — — 1,867

Total Timber Sales 110,765 47,128 91,322 — 16,285 — 265,500

License Revenue, Primarily From Hunting 10,559 225 125 — — — 10,909

Land-Based Solutions (a) 4,294 20 — — — — 4,314

Other Non-Timber/Carbon Credit Revenue 3,684 2,102 8,035 — — — 13,821

Agency Fee Income — — — — 627 — 627

Total Non-Timber Sales 18,537 2,347 8,160 — 627 — 29,671

Improved Development — — — 4,400 — — 4,400

Rural — — — 16,198 — — 16,198

Timberland & Non-Strategic — — — 16,111 — — 16,111

Deferred Revenue/Other (b) — — — 9,162 — — 9,162

Total Real Estate Sales — — — 45,871 — — 45,871

Revenue from Contracts with Customers 129,302 49,475 99,482 45,871 16,912 — 341,042

Lease Revenue — — — 664 — — 664

Intersegment — — — — 144 ( 144 ) —

Total Revenue $ 129,302 $ 49,475 $ 99,482 $ 46,535 $ 17,056 ($ 144 ) $ 341,706

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 10,342 340 123 — — — 10,805

Land-Based Solutions (a) 1,868 1,337 — — — — 3,205

Other Non-Timber/Carbon Credit Revenue 7,089 1,578 923 — — — 9,590

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) — — — 6,661 — — 6,661

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

Revenue from Contracts with Customers 140,152 66,736 105,004 47,713 27,738 — 387,343

Lease Revenue — — — 604 — — 604

Intersegment — — — — 246 ( 246 ) —

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

(a) Consists of sales from carbon capture and storage (“CCS”), solar and wind energy contracts and conservation easements for habitat protection.

(b) 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)

The following tables present our timber sales disaggregated by contract type for the three and six months ended June 30, 2024 and 2023:

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

March 31, 2024

June 30, 2024

Stumpage Pay-as-Cut $ 26,095 $ 5 — — $ 26,100

5 unchanged sentences

Total Timber Sales $ 49,899 $ 22,900 $ 49,163 $ 4,952 $ 126,914

March 31, 2023

June 30, 2023

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

Stumpage Lump Sum 281 — — — 281

Total Stumpage 30,774 — — — 30,774

Delivered Wood (Domestic) 25,437 26,996 12,559 89 65,081

Delivered Wood (Export) 2,196 2,989 47,634 14,863 67,682

Total Delivered 27,633 29,985 60,193 14,952 132,763

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

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, 2024

Stumpage Pay-as-Cut $ 59,624 $ 8 — — $ 59,632

Stumpage Lump Sum — 3,535 — — 3,535

Total Stumpage 59,624 3,543 — — 63,167

Delivered Wood (Domestic) 47,118 40,901 23,497 1,467 112,983

Delivered Wood (Export) 4,023 2,684 67,825 14,818 89,350

Total Delivered 51,141 43,585 91,322 16,285 202,333

Total Timber Sales $ 110,765 $ 47,128 $ 91,322 $ 16,285 $ 265,500

June 30, 2023

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

Stumpage Lump Sum

387 624 — — 1,011

18 unchanged sentences

Accordingly, we consolidate the New Zealand subsidiary’s balance sheet and results of operations.

Income attributable to the New Zealand subsidiary’s 23 % noncontrolling interests is reflected as an adjustment to income in our Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Net income attributable to noncontrolling interests in consolidated affiliates.” Rayonier New Zealand Limited (“RNZ”), a wholly-owned subsidiary, serves as the manager of the New Zealand subsidiary.

Income attributable to the New Zealand subsidiary’s 23 % noncontrolling interests is reflected as an adjustment to income in our Consolidated Statements of Income and Comprehensive Income (Loss) under the caption “Net (income) loss attributable to noncontrolling interests in consolidated affiliates.” Rayonier New Zealand Limited (“RNZ”), a wholly-owned subsidiary, serves as the manager of the New Zealand subsidiary.

NONCONTROLLING INTERESTS IN THE OPERATING PARTNERSHIP

4 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2024 2023 2024 2023

Beginning noncontrolling interests in the Operating Partnership

1 unchanged sentence

Adjustment of noncontrolling interests in the Operating Partnership

( 8,093 ) ( 4,296 ) ( 7,802 ) ( 1,920 )

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 attributable to noncontrolling interests in the operating partnership

26 318 46 492

Other comprehensive income (loss) attributable to noncontrolling interests in the Operating Partnership

19 58 ( 246 ) ( 1,052 )

Distributions to noncontrolling interests in the Operating Partnership

13 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,

2024 2023 2024 2023

Earnings per common share - basic

19 unchanged sentences

$ 0.01 $ 0.13 $ 0.02 $ 0.18

Three Months Ended March 31,

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

2024 2023 2024 2023

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

11 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,

2024 2023 2024 2023

Earnings per unit - basic

16 unchanged sentences

$ 0.01 $ 0.13 $ 0.02 $ 0.18

Three Months Ended March 31,

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

2024 2023 2024 2023

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

6 unchanged sentences

(Dollar amounts in thousands unless otherwise stated)

Our debt consisted of the following at March 31, 2024:

March 31, 2024

Our debt consisted of the following at June 30, 2024:

June 30, 2024

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

11 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 March 31, 2024:

The following table contains information on the outstanding variable rate debt as of June 30, 2024:

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

15 unchanged sentences

2024 DEBT ACTIVITY

During the three months ended March 31, 2024, we made no borrowings or repayments on our Revolving Credit Facility.

At March 31, 2024, we had available borrowings of $ 293.0 million under the Revolving Credit Facility, net of $ 7.0 million to secure our outstanding letters of credit.

During the six months ended June 30, 2024, we made no borrowings or repayments on our Revolving Credit Facility.

At June 30, 2024, we had available borrowings of $ 293.0 million under the Revolving Credit Facility, net of $ 7.0 million to secure our outstanding letters of credit.

New Zealand Debt

During the three months ended March 31, 2024, the New Zealand subsidiary made no borrowings or repayments on its working capital facility (the “New Zealand Working Capital Facility”).

At March 31, 2024, the New Zealand subsidiary had NZ$ 20.0 million of available borrowings under its working capital facility.

During the six months ended June 30, 2024, the New Zealand subsidiary made no borrowings or repayments on its working capital facility (the “New Zealand Working Capital Facility”).

At June 30, 2024, 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 Agreement, 2016 Incremental Term Loan Agreement, 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, 2024, 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, 2024, are calculated on a trailing 12-month basis:

Covenant Requirement Actual Ratio Favorable

2 unchanged sentences

In addition to the financial covenants listed above, the Senior Notes due 2031, 2015 Term Loan Agreement, 2016 Incremental Term Loan Agreement, 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 March 31, 2024, we were in compliance with all applicable covenants.

At June 30, 2024, we were in compliance with all applicable covenants.

DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

20 unchanged sentences

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, 2024, foreign currency exchange contracts and foreign currency option contracts had maturity dates through March 2027.

As of June 30, 2024, foreign currency exchange contracts and foreign currency option contracts had maturity dates through May 2027 and April 2027, respectively.

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

9 unchanged sentences

INTEREST RATE SWAPS

The following table contains information on the outstanding interest rate swaps as of March 31, 2024:

The following table contains information on the outstanding interest rate swaps as of June 30, 2024:

Outstanding Interest Rate Swaps (a)

18 unchanged sentences

FORWARD-STARTING INTEREST RATE SWAPS

The following table contains information on the outstanding forward-starting interest rate swaps as of March 31, 2024:

The following table contains information on the outstanding forward-starting interest rate swaps as of June 30, 2024:

Outstanding Forward-Starting Interest Rate Swaps (a)

4 unchanged sentences

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

The following table demonstrates the impact, gross of tax, of our derivatives on the Consolidated Statements of Income and Comprehensive Income (Loss) for the three months ended March 31, 2024 and 2023:

The following tables demonstrate the impact, gross of tax, of our derivatives on the Consolidated Statements of Income and Comprehensive Income (Loss) for the three and six months ended June 30, 2024 and 2023:

Three Months Ended

1 unchanged sentence

Derivatives designated as cash flow hedges:

Foreign currency exchange contracts Other comprehensive (loss) income ($ 5,490 ) $ 3,813

Other operating income (expense), net 459 ( 2,429 )

Foreign currency option contracts Other comprehensive (loss) income ( 1,638 ) ( 270 )

Other operating income (expense), net 8 —

Interest rate products Other comprehensive (loss) income 15,041 ( 9,660 )

Foreign currency exchange contracts Other comprehensive income (loss) $ 1,636 $ 188

Other operating expense, net 934 ( 1,577 )

Foreign currency option contracts Other comprehensive income (loss) 618 ( 561 )

Other operating expense, net — ( 48 )

Interest rate products Other comprehensive income (loss) 5,181 17,695

Interest expense, net ( 7,278 ) ( 4,314 )

During the next 12 months, the amount of the March 31, 2024 AOCI balance, net of tax, expected to be reclassified into earnings is a gain of approximate ly $ 22.5 million.

Six Months Ended

Income Statement Location 2024 2023

Derivatives designated as cash flow hedges:

Foreign currency exchange contracts Other comprehensive income (loss) ($ 3,855 ) $ 4,001

Other operating expense, net 1,392 ( 4,005 )

Foreign currency option contracts Other comprehensive income (loss) ( 1,021 ) ( 831 )

Other operating expense, net 8 ( 48 )

Interest rate products Other comprehensive income (loss) 20,222 8,035

Interest expense, net ( 14,557 ) ( 7,777 )

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, 2024 AOCI balance, net of tax, expected to be reclassified into earnings is a gain of approxim ately $ 23.0 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, 2024 December 31, 2023

June 30, 2024 December 31, 2023

Derivatives designated as cash flow hedges:

3 unchanged sentences

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

The following table contains the fair values of the derivative financial instruments recorded in the Consolidated Balance Sheets at March 31, 2024 and December 31, 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 contains the fair values of the derivative financial instruments recorded in the Consolidated Balance Sheets at June 30, 2024 and December 31, 2023.

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, 2024 December 31, 2023

June 30, 2024 December 31, 2023

Derivatives designated as cash flow hedges:

35 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, 2024 and December 31, 2023, using market information and what we believe to be appropriate valuation methodologies under GAAP:

March 31, 2024 December 31, 2023

The following table presents the carrying amount and estimated fair values of our financial instruments as of June 30, 2024 and December 31, 2023, using market information and what we believe to be appropriate valuation methodologies under GAAP:

June 30, 2024 December 31, 2023

Asset (Liability) (a) Carrying

10 unchanged sentences

Noncontrolling interests in the Operating Partnership (e) 59,047 — 59,047 81,651 — 81,651

(a) We did not have Level 3 assets or liabilities at March 31, 2024 and December 31, 2023.

(a) We did not have Level 3 assets or liabilities at June 30, 2024 and December 31, 2023.

(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, 2023 to March 31, 2024 are shown below:

Changes in environmental and NRD liabilities from December 31, 2023 to June 30, 2024 are shown below:

Port Gamble, WA

4 unchanged sentences

Increase to liabilities (a) 2,874

Total Balance at March 31, 2024

Total Balance at June 30, 2024

Current portion ( 14,681 )

Non-current portion at March 31, 2024

(a) The increase in liabilities reflects revised environmental and NRD cost estimates recorded during the three months ended March 31, 2024.

Non-current portion at June 30, 2024

(a) The increase in liabilities reflects revised environmental and NRD cost estimates recorded during the six months ended June 30, 2024.

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.

NRD costs are subject to change as the scope of the restoration projects become more clearly defined.

It is reasonably possible that these components of the liability may increase as the project progresses.

NRD costs are subject to change as the restoration projects progress.

It is reasonably possible that these components of the liability may increase as construction continues.

Management continues to monitor the Port Gamble cleanup process and will make adjustments as needed.

11 unchanged sentences

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

As of March 31, 2024, the following financial guarantees were outstanding:

As of June 30, 2024, the following financial guarantees were outstanding:

Financial Commitments (a) Maximum Potential

22 unchanged sentences

For selected development properties, we also invest in targeted infrastructure improvements, such as roadways and utilities, to accelerate the marketability and improve the value of such properties.

Changes in higher and better use timberlands and real estate development investments from December 31, 2023 to March 31, 2024 are shown below:

Changes in higher and better use timberlands and real estate development investments from December 31, 2023 to June 30, 2024 are shown below:

Higher and Better Use Timberlands and Real Estate Development Investments

11 unchanged sentences

Intersegment transfers 14,319 — 14,319

Total Balance at March 31, 2024

Total Balance at June 30, 2024

102,330 51,260 153,590

Current portion (a) ( 12,168 ) ( 6,069 ) ( 18,237 )

Non-current portion at March 31, 2024

Non-current portion at June 30, 2024

$ 90,162 $ 45,191 $ 135,353

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 one year.

As of March 31, 2024 and December 31, 2023, our inventory consisted entirely of finished goods, as follows:

March 31, 2024 December 31, 2023

As of June 30, 2024 and December 31, 2023, our inventory consisted entirely of finished goods, as follows:

June 30, 2024 December 31, 2023

Finished goods inventory

12 unchanged sentences

(Dollar amounts in thousands unless otherwise stated)

OTHER OPERATING INCOME (EXPENSE), NET

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

Three Months Ended March 31,

Gain (loss) on foreign currency remeasurement, net of cash flow hedges $ 242 ($ 2,484 )

OTHER OPERATING EXPENSE, NET

Other operating expense, net consisted of the following:

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

2024 2023 2024 2023

Loss on foreign currency remeasurement, net of cash flow hedges ($ 1,170 ) ($ 1,674 ) ($ 928 ) ($ 4,157 )

Gain on sale or disposal of property and equipment 3 35 13 37

Miscellaneous income (expense), net 19 ( 34 )

Costs related to disposition initiatives (a) ( 696 ) — ( 696 ) —

Miscellaneous (expense) income, net ( 31 ) 238 ( 12 ) 203

Total ($ 1,894 ) ($ 1,401 ) ($ 1,623 ) ($ 3,917 )

(a) Costs related to disposition initiatives include legal, advisory, and other due diligence costs incurred in connection with the Company’s asset disposition plan, which was announced in November 2023.

RAYONIER INC.

25 unchanged sentences

See Note 17 — Accumulated Other Comprehensive Income for additional information.

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

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

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

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

Three Months Ended

March 31, Three Months Ended

June 30, Three Months Ended

2024 2023 2024 2023

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

Interest cost Interest and other miscellaneous (expense) income, net 513 844 18 17

Expected return on plan assets (a) Interest and other miscellaneous (expense) income, net ( 542 ) ( 887 ) — —

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

Pension settlement loss Interest and other miscellaneous (expense) income, net 5,673 — — —

Net periodic benefit (credit) cost $ 5,644 ($ 42 ) $ 19 $ 18

Interest cost Interest and other miscellaneous income (expense), net 16 844 18 17

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

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

Net periodic benefit cost (credit) $ 16 ($ 42 ) $ 19 $ 18

RAYONIER INC.

AND SUBSIDIARIES

RAYONIER, L.P.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollar amounts in thousands unless otherwise stated)

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

Six Months Ended

June 30, Six Months Ended

2024 2023 2024 2023

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

Interest cost Interest and other miscellaneous income (expense), net 530 1,689 35 35

Expected return on plan assets (a) Interest and other miscellaneous income (expense), net ( 542 ) ( 1,776 ) — —

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

Pension settlement loss Interest and other miscellaneous income (expense), net 5,673 — — —

Net periodic benefit cost (credit) $ 5,661 ($ 84 ) $ 37 $ 37

(a) Prior to remeasurement of the Defined Benefit Plan due to the pension settlement, the weighted-average expected long-term rate of return on plan assets used in computing 2024 net periodic benefit cost for benefits was 5.0 %.

Following the pension settlement, the expected long-term rate of return on plan assets used in computing 2024 net periodic benefit cost for pension benefits is 3.1 %.

RAYONIER INC.

6 unchanged sentences

federal or state income tax.

As of March 31, 2024, Rayonier owns a 98.6 % inter est in the Operating Partnership and conducts substantially all of its timberland operations through the Operating Partnership.

As of June 30, 2024, Rayonier owns a 98.7 % 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

Income tax benefit (expense) (a) $ 832 ($ 1,039 )

(a) The three months ended March 31, 2024 includes a $ 1.2 million income tax benefit related to the pension settlement.

June 30, Six Months Ended

2024 2023 2024 2023

Income tax (expense) benefit (a) ($ 500 ) ($ 193 ) $ 332 ($ 1,230 )

(a) The six months ended June 30, 2024 includes a $ 1.2 million income tax benefit related to the pension settlement.

ANNUAL EFFECTIVE TAX RATE

2 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 11.8 % 3.9 %

6 unchanged sentences

ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table summarizes the changes in AOCI by component for the three months ended March 31, 2024 and the year ended December 31, 2023.

The following table summarizes the changes in AOCI by component for the six months ended June 30, 2024 and the year ended December 31, 2023.

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

12 unchanged sentences

Balance as of

March 31, 2024

June 30, 2024

($ 29,983 ) $ 1,321 $ 59,586 ($ 54 ) $ 30,870 ($ 3,121 ) $ 27,749

(a) The three months ended March 31, 2024 includes $ 15.0 million of other comprehensive income related to interest rate products.

(a) The six months ended June 30, 2024 includes $ 20.2 million of other comprehensive income related to interest rate products.

The year ended December 31, 2023 included $ 10.3 million of other comprehensive income re lated to interest rate products.

1 unchanged sentence

(b) This component of other comprehensive income is included in the computation of net periodic pension and post-retirement costs.

The three months ended March 31, 2024 includes a pension settlement charge of $ 4.5 million, net of tax of $ 1.2 million.

The six months ended June 30, 2024 includes a pension settlement charge of $ 4.5 million, net of tax of $ 1.2 million.

The year ended December 31, 2023 includes a $ 2.0 million pension settlement charge.

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, 2024 and March 31, 2023:

The following table presents details of the amounts reclassified in their entirety from AOCI to net income for the six months ended June 30, 2024 and June 30, 2023:

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

March 31, 2024 March 31, 2023

Realized loss (gain) on foreign currency exchange contracts $ 459 ($ 2,429 ) Other operating income (expense), net

Realized loss on foreign currency option contracts 8 — Other operating income (expense), net

Noncontrolling interests ( 108 ) 559 Comprehensive loss attributable to noncontrolling interests

June 30, 2024 June 30, 2023

Realized loss (gain) on foreign currency exchange contracts $ 1,392 ($ 4,005 ) Other operating expense, net

Realized loss (gain) on foreign currency option contracts 8 ( 48 ) Other operating expense, net

Noncontrolling interests ( 322 ) 932 Comprehensive (income) loss attributable to noncontrolling interests

Realized gain on interest rate contracts ( 14,557 ) ( 7,777 ) Interest expense, net

Income tax effect from net (loss) gain on foreign currency contracts ( 101 ) 525 Income tax benefit (expense)

Income tax effect from net (loss) gain on foreign currency contracts ( 301 ) 875 Income tax (expense) benefit

Net gain on cash flow hedges reclassified from accumulated other comprehensive income ($ 13,780 ) ($ 10,023 )

11 unchanged sentences

Additionally, restricted cash includes cash balances held in escrow as collateral for certain contractual obligations related to our Heartwood development project as well as cash held in escrow for real estate sales.

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, 2024 and 2023:

Three Months Ended March 31,

Six Months Ended June 30,

Restricted cash:

6 unchanged sentences

Assets held for sale is composed of properties not included in inventory which are 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, 2024 and December 31, 2023, the basis in properties meeting this classification was $ 10.0 million and $ 9.9 million, respectively.

As of June 30, 2024 and December 31, 2023, the basis in properties meeting this classification was $ 1.0 million and $ 9.9 million, respectively.

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

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