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Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 30, 2012

Condensed Consolidating Financial Statements

Schedule of Condensed Consolidating Balance Sheet

Condensed Unaudited Consolidating Balance Sheet
As of June 30, 2012

(in millions)

		Parent					Guarantor Subsidiaries					Non- Guarantor Subsidiaries					Consolidating Adjustments					Consolidated

Assets
Cash and cash equivalents			$	30.7				$	13.8				$	49.1				$	—				$	93.6
Accounts receivable, less allowance for doubtful accounts			78.5					845.9					89.1					—					1,013.5
Inventories			61.7					1,198.7					163.6					—					1,424.0
Intercompany receivables			0.4					13.3					2.9					(16.6		)			—
Other current assets			167.2					28.0					5.9					(124.0		)			77.1
Total current assets			338.5					2,099.7					310.6					(140.6		)			2,608.2

Investments in subsidiaries			3,323.9					293.4					—					(3,617.3		)			—
Property, plant and equipment, net			101.7					972.2					77.9					—					1,151.8
Goodwill			23.8					1,149.4					104.4					—					1,277.6
Intangible assets, net			12.3					772.6					130.7					—					915.6
Intercompany receivables			1,439.3					33.6					—					(1,472.9		)			—
Other assets			15.7					64.6					1.8					—					82.1
Total assets			$	5,255.2				$	5,385.5				$	625.4				$	(5,230.8)				$	6,035.3

Liabilities & Equity
Accounts payable			$	35.7				$	314.5				$	41.6				$	(16.6	)			$	375.2
Accrued compensation and retirement costs			13.9					70.4					6.0					—					90.3
Other current liabilities			50.2					89.1					7.4					(49.0		)			97.7
Deferred income taxes			—					75.0					—					(75.0		)			—
Current maturities of long-term debt and short-term borrowings			0.3					—					11.9					—					12.2
Total current liabilities			100.1					549.0					66.9					(140.6		)			575.4
Long-term debt			1,519.0					—					—					—					1,519.0
Intercompany borrowings			—					1,316.5					156.4					(1,472.9		)			—
Other long-term liabilities			270.7					271.0					24.0					—					565.7
Total Reliance shareholders’ equity			3,365.4					3,243.1					374.2					(3,617.3		)			3,365.4
Noncontrolling interests			—					5.9					3.9					—					9.8
Total equity			3,365.4					3,249.0					378.1					(3,617.3		)			3,375.2
Total liabilities and equity			$	5,255.2				$	5,385.5				$	625.4				$	(5,230.8	)			$	6,035.3

Condensed Unaudited Consolidating Balance Sheet
As of December 31, 2011

(in millions)

		Parent					Guarantor Subsidiaries					Non- Guarantor Subsidiaries					Consolidating Adjustments					Consolidated

Assets
Cash and cash equivalents			$	15.1				$	10.8				$	58.7				$	—				$	84.6
Accounts receivable, less allowance for doubtful accounts			69.6					739.1					87.5					—					896.2
Inventories			43.7					1,017.4					151.7					—					1,212.8
Intercompany receivables			0.3					11.6					0.9					(12.8		)			—
Other current assets			108.7					28.0					7.5					(63.1		)			81.1
Total current assets			237.4					1,806.9					306.3					(75.9		)			2,274.7

Investments in subsidiaries			3,217.0					273.9					—					(3,490.9		)			—
Property, plant and equipment, net			100.0					931.5					74.0					—					1,105.5
Goodwill			23.8					1,115.7					104.8					—					1,244.3
Intangible assets, net			13.6					748.0					134.3					—					895.9
Intercompany receivables			1,229.9					35.9					—					(1,265.8		)			—
Other assets			13.7					70.0					1.8					—					85.5
Total assets			$	4,835.4				$	4,981.9				$	621.2				$	(4,832.6	)			$	5,605.9

Liabilities & Equity
Accounts payable			$	31.2				$	270.6				$	46.2				$	(12.8	)			$	335.2
Accrued compensation and retirement costs			22.0					81.4					7.6					—					111.0
Other current liabilities			49.3					41.4					15.4					11.9					118.0
Deferred income taxes			—					75.0					—					(75.0		)			—
Current maturities of long-term debt and short-term borrowings			0.2					0.2					11.8					—					12.2
Total current liabilities			102.7					468.6					81.0					(75.9		)			576.4
Long-term debt			1,319.0					—					—					—					1,319.0
Intercompany borrowings			—					1,097.2					168.6					(1,265.8		)			—
Other long-term liabilities			269.8					264.9					23.8					—					558.5
Total Reliance shareholders’ equity			3,143.9					3,146.8					344.1					(3,490.9		)			3,143.9
Noncontrolling interests			—					4.4					3.7					—					8.1
Total equity			3,143.9					3,151.2					347.8					(3,490.9		)			3,152.0
Total liabilities and equity			$	4,835.4				$	4,981.9				$	621.2				$	(4,832.6	)			$	5,605.9

Schedule of Condensed Consolidating Statement of Income

Condensed Unaudited Consolidating Statement of Income
For the three months ended June 30, 2012
(in millions)

		Parent					Guarantor Subsidiaries					Non- Guarantor Subsidiaries					Consolidating Adjustments					Consolidated

Net sales			$	189.7				$	1,924.1				$	154.3				$	(58.4	)			$	2,209.7

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)			132.9					1,457.1					108.7					(58.4		)			1,640.3
Warehouse, delivery, selling, general and administrative			16.2					326.2					24.4					(20.1		)			346.7
Depreciation and amortization			3.4					29.8					3.3					—					36.5
			152.5					1,813.1					136.4					(78.5		)			2,023.5

Operating income			37.2					111.0					17.9					20.1					186.2

Other income (expense):
Interest			(14.8		)			(4.7		)			(0.5		)			5.0					(15.0		)
Other income (expense), net			22.8					(0.7		)			(0.5		)			(25.1		)			(3.5		)
Income before equity in earnings of subsidiaries and income taxes			45.2					105.6					16.9					—					167.7
Equity in earnings of subsidiaries			60.1					7.9					—					(68.0		)			—
Income before income taxes			105.3					113.5					16.9					(68.0		)			167.7
Income tax (benefit) provision			(3.5		)			57.4					3.6					—					57.5
Net income			108.8					56.1					13.3					(68.0		)			110.2
Less: Net income attributable to noncontrolling interests			—					1.4					—					—					1.4
Net income attributable to Reliance			$	108.8				$	54.7				$	13.3				$	(68.0	)			$	108.8

Condensed Unaudited Consolidating Statement of Income
For the three months ended June 30, 2011

(in millions)

		Parent					Guarantor Subsidiaries					Non- Guarantor Subsidiaries					Consolidating Adjustments					Consolidated

Net sales			$	182.8				$	1,804.0				$	116.4				$	(53.7	)			$	2,049.5

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)			129.2					1,386.4					76.8					(53.7		)			1,538.7
Warehouse, delivery, selling, general and administrative			19.8					293.7					20.7					(20.5		)			313.7
Depreciation and amortization			3.5					26.2					1.8					—					31.5
			152.5					1,706.3					99.3					(74.2		)			1,883.9

Operating income			30.3					97.7					17.1					20.5					165.6

Other income (expense):
Interest			(15.3		)			(12.0		)			—					11.8					(15.5)
Other income, net			30.3					6.1					—					(32.3		)			4.1
Income before equity in earnings of subsidiaries and income taxes			45.3					91.8					17.1					—					154.2
Equity in earnings of subsidiaries			51.6					7.9					—					(59.5		)			—
Income before income taxes			96.9					99.7					17.1					(59.5		)			154.2
Income tax (benefit) provision			(1.8		)			51.9					3.9					—					54.0
Net income			98.7					47.8					13.2					(59.5		)			100.2
Less: Net income attributable to noncontrolling interests			—					1.3					0.2					—					1.5
Net income attributable to Reliance			$	98.7				$	46.5				$	13.0				$	(59.5	)			$	98.7

Condensed Unaudited Consolidating Statement of Income
For the six months ended June 30, 2012

(in millions)

		Parent					Guarantor Subsidiaries					Non- Guarantor Subsidiaries					Consolidating Adjustments					Consolidated

Net sales			$	382.4				$	3,896.3				$	345.9				$	(126.6	)			$	4,498.0

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)			286.6					2,944.9					245.9					(126.6		)			3,350.8
Warehouse, delivery, selling, general and administrative			31.2					670.7					49.2					(46.7		)			704.4
Depreciation and amortization			6.9					59.0					6.1					—					72.0
			324.7					3,674.6					301.2					(173.3		)			4,127.2

Operating income			57.7					221.7					44.7					46.7					370.8

Other income (expense):
Interest			(29.2		)			(8.6		)			(1.2		)			9.5					(29.5)
Other income, net			56.7					2.0					0.5					(56.2		)			3.0
Income before equity in earnings of subsidiaries and income taxes			85.2					215.1					44.0					—					344.3
Equity in earnings of subsidiaries			128.1					17.8					—					(145.9		)			—
Income before income taxes			213.3					232.9					44.0					(145.9		)			344.3
Income tax (benefit) provision			(11.7		)			119.6					8.3					—					116.2
Net income			225.0					113.3					35.7					(145.9		)			228.1
Less: Net income attributable to noncontrolling interests			—					2.9					0.2					—					3.1
Net income attributable to Reliance			$	225.0				$	110.4				$	35.5				$	(145.9	)			$	225.0

Condensed Unaudited Consolidating Statement of Income
For the six months ended June 30, 2011

(in millions)

		Parent					Guarantor Subsidiaries					Non- Guarantor Subsidiaries					Consolidating Adjustments					Consolidated

Net sales		$	358.5				$	3,487.9				$	225.7				$	(109.9	)			$	3,962.2

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)		268.3					2,639.6					147.1					(109.9		)			2,945.1
Warehouse, delivery, selling, general and administrative		39.4					597.3					40.9					(45.4		)			632.2
Depreciation and amortization		6.9					54.1					3.5					—					64.5
		314.6					3,291.0					191.5					(155.3		)			3,641.8

Operating income		43.9					196.9					34.2					45.4					320.4

Other income (expense):
Interest		(29.8		)			(18.6		)			(0.4		)			18.7					(30.1		)
Other income, net		62.3					6.1					—					(64.1		)			4.3
Income before equity in earnings of subsidiaries and income taxes		76.4					184.4					33.8					—					294.6
Equity in earnings of subsidiaries		104.7					15.7					—					(120.4		)			—
Income before income taxes		181.1					200.1					33.8					(120.4		)			294.6
Income tax (benefit) provision		(9.9		)			102.9					7.8					—					100.8
Net income		191.0					97.2					26.0					(120.4		)			193.8
Less: Net income attributable to noncontrolling interests		—					2.3					0.5					—					2.8
Net income attributable to Reliance		$	191.0				$	94.9				$	25.5				$	(120.4	)			$	191.0

Schedule of Condensed Consolidating Cash Flow Statement

Condensed Unaudited Consolidating Cash Flow Statement
For the six months ended June 30, 2012

(in millions)

		Parent					Guarantor Subsidiaries					Non- Guarantor Subsidiaries					Consolidating Adjustments					Consolidated

Operating activities:
Net income		$	225.0				$	113.3				$	35.7				$	(145.9	)			$	228.1
Equity in earnings of subsidiaries		(128.1		)			(18.9		)			—					145.9					(1.1		)
Other operating activities, net		14.1					(193.9		)			(26.0		)			—					(205.8		)
Cash provided by (used in) operating activities		111.0					(99.5		)			9.7					—					21.2

Investing activities:
Purchases of property, plant and equipment		(7.6		)			(72.0		)			(7.2		)			—					(86.8		)
Acquisitions of metal service centers, net of cash acquired		(65.9		)			(16.4		)			—					—					(82.3		)
Net advances to subsidiaries		(209.4		)			—					—					209.4					—
Other investing activities, net		0.1					1.7					—					—					1.8
Cash used in investing activities		(282.8		)			(86.7		)			(7.2		)			209.4					(167.3		)

Financing activities:
Net short-term debt (repayments) borrowings		—					(29.5		)			0.1					—					(29.4		)
Proceeds from long-term debt borrowings		458.0					—					—					—					458.0
Principal payments on long-term debt		(258.0		)			(1.5		)			—					—					(259.5		)
Dividends paid		(22.5		)			—					—					—					(22.5		)
Net intercompany borrowings (repayments)		—					221.6					(12.2		)			(209.4		)			—
Other financing activities, net		9.9					(1.4		)			—					—					8.5
Cash provided by (used in) financing activities		187.4					189.2					(12.1		)			(209.4		)			155.1
Effect of exchange rate changes on cash and cash equivalents		—					—					—					—					—
Increase (decrease) in cash and cash equivalents		15.6					3.0					(9.6		)			—					9.0
Cash and cash equivalents at beginning of year		15.1					10.8					58.7					—					84.6
Cash and cash equivalents at end of period		$	30.7				$	13.8				$	49.1				$	—				$	93.6

Condensed Unaudited Consolidating Cash Flow Statement
For the six months ended June 30, 2011

(in millions)

		Parent					Guarantor Subsidiaries					Non- Guarantor Subsidiaries					Consolidating Adjustments					Consolidated

Operating activities:
Net income		$	191.0				$	97.2				$	26.0				$	(120.4	)			$	193.8
Equity in earnings of subsidiaries		(104.7		)			(16.8		)			—					120.4					(1.1		)
Other operating activities, net		0.4					(252.3		)			(26.3		)			—					(278.2		)
Cash provided by (used in) operating activities		86.7					(171.9		)			(0.3		)			—					(85.5		)

Investing activities:
Purchases of property, plant and equipment		(5.9		)			(58.6		)			(1.8		)			—					(66.3		)
Net advances to subsidiaries		(243.8		)			—					—					243.8					—
Other investing activities, net		2.6					6.9					0.1					—					9.6
Cash used in investing activities		(247.1		)			(51.7		)			(1.7		)			243.8					(56.7		)

Financing activities:
Net short-term debt repayments		—					—					0.8					—					0.8
Proceeds from long-term debt borrowings		286.0					—					—					—					286.0
Principal payments on long-term debt		(116.0		)			(1.1		)			—					—					(117.1		)
Dividends paid		(17.9		)			—					—					—					(17.9		)
Net intercompany borrowings		—					238.9					4.9					(243.8		)			—
Other financing activities, net		9.1					(1.0		)			—					—					8.1
Cash provided by financing activities		161.2					236.8					5.7					(243.8		)			159.9
Effect of exchange rate changes on cash and cash equivalents		—					—					1.4					—					1.4
Increase in cash and cash equivalents		0.8					13.2					5.1					—					19.1
Cash and cash equivalents at beginning of year		14.4					8.0					50.5					—					72.9
Cash and cash equivalents at end of period		$	15.2				$	21.2				$	55.6				$	—				$	92.0