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Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2011

Condensed Consolidating Financial Statements

Schedule of Condensed Consolidating Balance Sheet

Condensed Unaudited Consolidating Balance Sheet
As of September 30, 2011

(in millions)

		Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations & Reclassifications			Consolidated

Assets
Cash and cash equivalents		$	29.3		$	8.5		$	53.3		$	—		$	91.1
Accounts receivable, less allowance for doubtful accounts		76.0			841.0			102.5			—			1,019.5
Inventories		55.6			1,079.5			141.5			—			1,276.6
Intercompany receivables		0.3			31.2			5.8			(37.3		)	—
Other current assets		94.5			29.9			9.2			(91.1		)	42.5
Total current assets		255.7			1,990.1			312.3			(128.4		)	2,429.7

Investments in subsidiaries		2,157.1			261.0			—			(2,418.1		)	—
Property, plant and equipment, net		97.3			918.3			72.0			—			1,087.6
Goodwill		23.8			1,110.5			97.3			—			1,231.6
Intangible assets, net		13.8			754.9			141.1			—			909.8
Intercompany receivables		2,351.3			36.1			—			(2,387.4		)	—
Other assets		5.2			62.3			1.8			—			69.3
Total assets		$	4,904.2		$	5,133.2		$	624.5		$	(4,933.9	)	$	5,728.0

Liabilities & Equity
Accounts payable		$	41.0		$	343.8		$	65.2		$	(37.3	)	$	412.7
Accrued compensation and retirement costs		17.1			75.8			7.2			—			100.1
Other current liabilities		49.0			45.8			8.4			—			103.2
Income taxes payable		—			20.9			9.3			(25.5		)	4.7
Deferred income taxes		—			75.2			—			(65.6		)	9.6
Current maturities of long-term debt and short-term borrowings		0.3			0.2			13.7			—			14.2
Total current liabilities		107.4			561.7			103.8			(128.4		)	644.5
Long-term debt		1,463.9			—			—			—			1,463.9
Intercompany borrowings		—			2,226.4			161.0			(2,387.4		)	—
Deferred taxes and other long-term liabilities		248.2			252.7			26.0			—			526.9
Total Reliance shareholders’ equity		3,084.7			2,088.0			330.1			(2,418.1		)	3,084.7
Noncontrolling interests		—			4.4			3.6			—			8.0
Total equity		3,084.7			2,092.4			333.7			(2,418.1		)	3,092.7
Total liabilities and equity		$	4,904.2		$	5,133.2		$	624.5		$	(4,933.9	)	$	5,728.0

Condensed Consolidating Balance Sheet
As of December 31, 2010

(in millions)

		Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations & Reclassifications			Consolidated

Assets
Cash and cash equivalents		$	14.4		$	8.0		$	50.5		$	—		$	72.9
Accounts receivable, less allowance for doubtful accounts		58.1			586.2			52.7			—			697.0
Inventories		33.6			770.4			56.2			—			860.2
Intercompany receivables		0.3			12.4			—			(12.7		)	—
Other current assets		99.8			27.3			5.1			(61.4		)	70.8
Total current assets		206.2			1,404.3			164.5			(74.1		)	1,700.9

Investments in subsidiaries		1,783.2			202.8			—			(1,986.0		)	—
Property, plant and equipment, net		97.5			870.3			57.5			—			1,025.3
Goodwill		23.8			1,029.0			56.8			—			1,109.6
Intangible assets, net		9.8			681.1			64.9			—			755.8
Intercompany receivables		1,956.5			—			—			(1,956.5		)	—
Other assets		4.9			71.4			1.0			—			77.3
Total assets		$	4,081.9		$	4,258.9		$	344.7		$	(4,016.6	)	$	4,668.9

Liabilities & Equity
Accounts payable		$	24.5		$	204.6		$	28.6		$	(12.7	)	$	245.0
Accrued compensation and retirement costs		14.9			64.8			5.4			—			85.1
Other current liabilities		37.6			40.2			4.9			—			82.7
Deferred income taxes		—			71.0			—			(61.4		)	9.6
Current maturities of long-term debt and short-term borrowings		74.4			—			11.8			—			86.2
Total current liabilities		151.4			380.6			50.7			(74.1		)	508.6
Long-term debt		854.9			0.2			—			—			855.1
Intercompany borrowings		—			1,926.9			29.6			(1,956.5		)	—
Deferred taxes and other long-term liabilities		251.9			218.2			5.0			—			475.1
Total Reliance shareholders’ equity		2,823.7			1,729.5			256.5			(1,986.0		)	2,823.7
Noncontrolling interests		—			3.5			2.9			—			6.4
Total equity		2,823.7			1,733.0			259.4			(1,986.0		)	2,830.1
Total liabilities and equity		$	4,081.9		$	4,258.9		$	344.7		$	(4,016.6	)	$	4,668.9

Schedule of Condensed Unaudited Consolidating Statement of Income

Condensed Unaudited Consolidating Statement of Income
For the three months ended September 30, 2011
(in millions)

		Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated

Net sales		$	178.9		$	1,858.3		$	157.3		$	(55.9	)	$	2,138.6

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)		144.2			1445.9			110.5			(55.9		)	1,644.7
Warehouse, delivery, selling, general and administrative		19.7			289.1			22.6			(11.8		)	319.6
Depreciation and amortization		4.4			27.1			2.7			—			34.2
		168.3			1,762.1			135.8			(67.7		)	1,998.5

Operating income		10.6			96.2			21.5			11.8			140.1

Other income (expense):
Interest		(14.8		)	(4.6		)	(1.1		)	5.5			(15.0		)
Other income (expense), net		16.0			(3.9		)	(1.3		)	(17.3		)	(6.5		)
Income before equity in earnings of subsidiaries and income taxes		11.8			87.7			19.1			—			118.6
Equity in earnings of subsidiaries		64.1			8.0			—			(72.1		)	—
Income before income taxes		75.9			95.7			19.1			(72.1		)	118.6
Income tax (benefit) provision		(9.0		)	37.2			4.1			—			32.3
Net income		84.9			58.5			15.0			(72.1		)	86.3
Less: Net income attributable to noncontrolling interests		—			1.2			0.2			—			1.4
Net income attributable to Reliance		$	84.9		$	57.3		$	14.8		$	(72.1	)	$	84.9

Condensed Unaudited Consolidating Statement of Income
For the three months ended September 30, 2010

(in millions)

		Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated

Net sales		$	155.0		$	1,449.3		$	89.3		$	(39.8	)	$	1,653.8

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)		119.0			1,119.4			59.0			(39.8		)	1,257.6
Warehouse, delivery, selling, general and administrative		26.6			248.2			17.8			(14.4		)	278.2
Depreciation and amortization		3.3			24.8			1.7			—			29.8
		148.9			1,392.4			78.5			(54.2		)	1,565.6

Operating income		6.1			56.9			10.8			14.4			88.2

Other income (expense):
Interest		(15.6		)	(4.4		)	(0.2		)	4.9			(15.3		)
Other (expense) income, net		(28.9		)	48.2			0.5			(19.3		)	0.5
(Loss) income before equity in earnings of subsidiaries and income taxes		(38.4		)	100.7			11.1			—			73.4
Equity in earnings of subsidiaries		63.5			5.0			—			(68.5		)	—
Income before income taxes		25.1			105.7			11.1			(68.5		)	73.4
Income tax (benefit) provision		(23.6		)	45.2			2.5			—			24.1
Net income		48.7			60.5			8.6			(68.5		)	49.3
Less: Net income (loss) attributable to noncontrolling interests		—			0.8			(0.2		)	—			0.6
Net income attributable to Reliance		$	48.7		$	59.7		$	8.8		$	(68.5	)	$	48.7

Condensed Unaudited Consolidating Statement of Income
For the nine months ended September 30, 2011
(in millions)

		Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated

Net sales		$	537.4		$	5,346.2		$	383.0		$	(165.8	)	$	6,100.8

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)		412.5			4,085.5			257.6			(165.8		)	4,589.8
Warehouse, delivery, selling, general and administrative		59.1			886.4			63.5			(57.2		)	951.8
Depreciation and amortization		11.3			81.2			6.2			—			98.7
		482.9			5,053.1			327.3			(223.0		)	5,640.3

Operating income		54.5			293.1			55.7			57.2			460.5

Other income (expense):
Interest		(44.6		)	(23.2		)	(1.5		)	24.2			(45.1		)
Other income (expense), net		78.3			2.2			(1.3		)	(81.4		)	(2.2		)
Income before equity in earnings of subsidiaries and income taxes		88.2			272.1			52.9			—			413.2
Equity in earnings of subsidiaries		168.8			23.7			—			(192.5		)	—
Income before income taxes		257.0			295.8			52.9			(192.5		)	413.2
Income tax (benefit) provision		(18.9		)	140.1			11.9			—			133.1
Net income		275.9			155.7			41.0			(192.5		)	280.1
Less: Net income attributable to noncontrolling interests		—			3.5			0.7			—			4.2
Net income attributable to Reliance		$	275.9		$	152.2		$	40.3		$	(192.5	)	$	275.9

Condensed Unaudited Consolidating Statement of Income
For the nine months ended September 30, 2010

(in millions)

		Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated

Net sales		$	448.0		$	4,164.6		$	244.4		$	(128.5	)	$	4,728.5

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)		339.5			3,159.5			166.9			(128.5		)	3,537.4
Warehouse, delivery, selling, general and administrative		75.1			745.0			51.9			(52.4		)	819.6
Depreciation and amortization		9.6			74.7			4.6			—			88.9
		424.2			3,979.2			223.4			(180.9		)	4,445.9

Operating income		23.8			185.4			21.0			52.4			282.6

Other income (expense):
Interest		(46.9		)	(26.2		)	(0.5		)	27.6			(46.0		)
Other income (expense), net		31.3			47.7			0.4			(80.0		)	(0.6		)
Income before equity in earnings of subsidiaries and income taxes		8.2			206.9			20.9			—			236.0
Equity in earnings of subsidiaries		113.6			9.6			—			(123.2		)	—
Income before income taxes		121.8			216.5			20.9			(123.2		)	236.0
Income tax (benefit) provision		(33.1		)	107.9			4.1			—			78.9
Net income		154.9			108.6			16.8			(123.2		)	157.1
Less: Net income attributable to noncontrolling interests		—			2.2			—			—			2.2
Net income attributable to Reliance		$	154.9		$	106.4		$	16.8		$	(123.2	)	$	154.9

Schedule of Condensed Unaudited Consolidating Cash Flow Statement

Condensed Unaudited Consolidating Cash Flow Statement
For the nine months ended September 30, 2011

(in millions)

		Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated

Operating activities:
Net income		$	275.9		$	155.7		$	41.0		$	(192.5	)	$	280.1
Equity in earnings of subsidiaries		(168.8		)	(25.3		)	—			192.5			(1.6		)
Other operating activities, net		4.6			(244.5		)	(21.3		)	—			(261.2		)
Cash provided by (used in) operating activities		111.7			(114.1		)	19.7			—			17.3

Investing activities:
Purchases of property, plant and equipment		(9.5		)	(99.9		)	(3.3		)	—			(112.7		)
Acquisition of a metal service center, net of cash acquired		(306.5		)	—			—			—			(306.5		)
Net advances to subsidiaries		(294.7		)	—			—			294.7			—
Other investing activities, net		3.9			8.7			0.1			—			12.7
Cash used in investing activities		(606.8		)	(91.2		)	(3.2		)	294.7			(406.5		)

Financing activities:
Net borrowings (repayments) of debt		534.8			(76.1		)	(28.0		)	—			430.7
Dividends paid		(26.9		)	—			—			—			(26.9		)
Net intercompany borrowings		—			284.5			10.2			(294.7		)	—
Other financing activities, net		2.1			(2.6		)	—			—			(0.5		)
Cash provided by (used in) financing activities		510.0			205.8			(17.8		)	(294.7		)	403.3
Effect of exchange rate changes on cash and cash equivalents		—			—			4.1			—			4.1
Increase in cash and cash equivalents		14.9			0.5			2.8			—			18.2
Cash and cash equivalents at beginning of year		14.4			8.0			50.5			—			72.9
Cash and cash equivalents at end of period		$	29.3		$	8.5		$	53.3		$	—		$	91.1

Condensed Unaudited Consolidating Cash Flow Statement
For the nine months ended September 30, 2010

(in millions)

		Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated

Operating activities:
Net income		$	154.9		$	108.6		$	16.8		$	(123.2	)	$	157.1
Equity in earnings of subsidiaries		(113.6		)	(9.8		)	—			123.2			(0.2		)
Other operating activities, net		21.3			(118.9		)	(11.6		)	—			(109.2		)
Cash provided by (used in) operating activities		62.6			(20.1		)	5.2			—			47.7

Investing activities:
Purchases of property, plant and equipment		(6.9		)	(53.5		)	(5.4		)	—			(65.8		)
Net advances to subsidiaries		(81.4		)	—			—			81.4			—
Other investing activities, net		(5.0		)	4.8			0.1			5.1			5.0
Cash used in investing activities		(93.3		)	(48.7		)	(5.3		)	86.5			(60.8		)

Financing activities:
Net borrowings (repayments) of debt		154.7			(0.5		)	3.9			—			158.1
Dividends paid		(22.2		)	—			—			—			(22.2		)
Net intercompany borrowings		—			80.1			1.3			(81.4		)	—
Other financing activities, net		20.8			(1.0		)	5.2			(5.1		)	19.9
Cash provided by financing activities		153.3			78.6			10.4			(86.5		)	155.8
Effect of exchange rate changes on cash and cash equivalents		—			—			0.8			—			0.8
Increase in cash and cash equivalents		122.6			9.8			11.1			—			143.5
Cash and cash equivalents at beginning of year		9.0			6.9			27.1			—			43.0
Cash and cash equivalents at end of period		$	131.6		$	16.7		$	38.2		$	—		$	186.5