<SEC-DOCUMENT>0000052827-11-000017.txt : 20110708
<SEC-HEADER>0000052827-11-000017.hdr.sgml : 20110708
<ACCEPTANCE-DATETIME>20110503104407
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000052827-11-000017
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20110503

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			RAYONIER INC
		CENTRAL INDEX KEY:			0000052827
		STANDARD INDUSTRIAL CLASSIFICATION:	REAL ESTATE INVESTMENT TRUSTS [6798]
		IRS NUMBER:				132607329
		STATE OF INCORPORATION:			NC
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		1301 RIVERPLACE BOULEVARD
		STREET 2:		SUITE 2300
		CITY:			JACKSONVILLE
		STATE:			FL
		ZIP:			32207
		BUSINESS PHONE:		9043579100

	MAIL ADDRESS:	
		STREET 1:		1301 RIVERPLACE BOULEVARD
		STREET 2:		SUITE 2300
		CITY:			JACKSONVILLE
		STATE:			FL
		ZIP:			32207

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ITT RAYONIER INC /CT/
		DATE OF NAME CHANGE:	19940422

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ITT RAYONIER INC
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
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<a name="s168C4F1D9FDABB9DF77BB1A68AC33EE6"></a><div style="vertical-align:inherit;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></div><br><div style="line-height:120%;padding-top:12px;text-align:center;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">May 3, 2011</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Mr.&#160;Daniel L. Gordon </font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Branch Chief,</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Division of Corporation Finance</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">United States Securities and </font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;Exchange Commission</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">100 F Street, NE</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Washington, D.C. 20549 </font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Re:    Rayonier Inc.</font></div><div style="line-height:120%;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">          Form 10-K for the Year Ended December 31, 2010</font></div><div style="line-height:120%;padding-bottom:13px;text-align:left;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">          File No. 001-06780</font><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Dear Mr.&#160;Gordon: </font></div><div style="line-height:120%;padding-bottom:16px;padding-top:6px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The following is in response to your letter dated April 7, 2011 regarding the review of Rayonier's 2010 Form 10-K. </font></div><div style="line-height:120%;padding-bottom:16px;padding-top:6px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Form 10-K for the Year Ended December 31, 2010</font></div><div style="line-height:120%;padding-bottom:16px;padding-top:6px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations, page 20 </font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt; width:100%;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top;padding-left:24px;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">1.</font><font style="font-family:inherit;font-size:10pt;"></font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">We note from your disclosure on page F-8 that you capitalize costs related to acquiring, planting and growing timber including real estate taxes, lease rental payments and site preparation.  Please tell us if you capitalize any costs related to interest expense, payroll or any other soft costs and if so please tell us the amounts and consider expanding your disclosures in future filings to include a narrative discussion of these costs.</font></div></td></tr></table><div style="line-height:120%;padding-bottom:16px;padding-top:6px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Under our timber capitalization policy we only capitalize costs directly related to acquiring, planting and growing timber.  The only payroll costs that we capitalize are for foresters in field offices to the extent their time is spent directly on the activities noted above.  These costs totaled $2.3 million in 2010.  We also capitalized $1.2 million of direct support costs relating to facilities, vehicles and supplies.  We do not capitalize interest or any other soft costs aside from those mentioned above.  The payroll and direct support costs that were capitalized in 2010 are indicative of the types of costs capitalized in prior years.</font></div><div style="line-height:120%;padding-bottom:16px;padding-top:6px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In future filings, we will update our timber disclosure to include the capitalization of payroll and direct support costs related to acquiring, planting and growing timber.       </font></div><div style="line-height:120%;padding-bottom:16px;padding-top:6px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">Outlook for 2011, page 28</font></div><table cellpadding="0" cellspacing="0" style="font-family:Times New Roman; font-size:10pt; width:100%;"><tr><td style="width:48px;"></td><td></td></tr><tr><td style="vertical-align:top;padding-left:24px;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">2.</font><font style="font-family:inherit;font-size:10pt;"></font></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">In future filings, please revise your projections of future economic performance to provide the information required by Item 10(b) of Regulation S-K.  For example, the disclosures accompanying the projections should facilitate investor understanding of the basis for and limitations of projections.  Refer to Item 10(b)(3)(i) of Regulation S-K.</font></div></td></tr></table><div style="line-height:120%;padding-left:48px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In Rayonier's first quarter 2011 Form 10-Q (filed on April 26, 2011) we revised the Outlook section on page 21 to include disclosures to facilitate investor understanding of the basis for and limitations of our projections. Future filings will include information as required by Item 10(b) of Regulation S-K.</font><font style="font-family:inherit;font-size:10pt;">&#160;&#160;&#160;&#160;</font></div><div style="line-height:120%;padding-bottom:8px;padding-top:12px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We trust that we have adequately responded to your requests with regard to the foregoing items. In addition, we acknowledge the following: </font></div><div style="line-height:120%;padding-bottom:8px;padding-left:60px;text-align:justify;text-indent:-14px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">* The Company is responsible for the adequacy and accuracy of the disclosure in the filings; </font></div><div style="line-height:120%;padding-bottom:8px;padding-left:60px;text-align:justify;text-indent:-14px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">* Staff comments or changes to disclosure in response to staff comments do not foreclose the Commission from taking any action with respect to the filings; and </font></div><div style="line-height:120%;padding-bottom:13px;padding-left:60px;text-align:justify;text-indent:-12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">* The Company may not assert staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States. </font></div><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></div><hr style="page-break-after:always"><div style="vertical-align:inherit;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></div><br><div style="line-height:120%;padding-top:12px;text-align:justify;text-indent:48px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Please do not hesitate to contact me at 904-357-9134 with any questions or if additional information is needed. </font></div><div style="line-height:120%;text-align:justify;font-size:9pt;"><font style="font-family:inherit;font-size:9pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Sincerely,</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;text-decoration:underline;">/s/ Hans E. Vanden Noort</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Hans E. Vanden Noort</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Senior Vice President and Chief Financial Officer</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div><br><div style="text-align:center;vertical-align:inherit;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">&#160;</font></div></div>	</body>
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