Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 30, 2013

Condensed Consolidating Financial Statements

Schedule of Condensed Consolidating Balance Sheet

As of June 30, 2013

(in millions)

	Parent		Guarantor Subsidiaries				Non- Guarantor Subsidiaries			Consolidating Adjustments				Consolidated

Assets
Cash and cash equivalents	$	47.7		$	(7.8	)		$	60.9		$	—			$	100.8
Accounts receivable, less allowance for doubtful accounts	76.6			967.0				99.9			—				1,143.5
Inventories	58.3			1,369.5				159.3			—				1,587.1
Intercompany receivables	0.6			18.2				2.8			(21.6		)		—
Income taxes receivable	57.2			—				—			(39.6		)		17.6
Other current assets	109.1			41.2				11.4			(78.2		)		83.5
Total current assets	349.5			2,388.1				334.3			(139.4		)		2,932.5

Investments in subsidiaries	4,399.0			1,139.3				—			(5,538.3		)		—
Property, plant and equipment, net	99.9			1,274.5				211.9			—				1,586.3
Goodwill	23.8			1,525.5				109.5			—				1,658.8
Intangible assets, net	19.0			1,172.7				122.2			—				1,313.9
Intercompany receivables	1,461.0			18.1				871.6			(2,350.7		)		—
Other assets	18.6			61.8				3.7			—				84.1
Total assets	$	6,370.8		$	7,580.0			$	1,653.2		$	(8,028.4	)		$	7,575.6

Liabilities & Equity
Accounts payable	$	41.6		$	305.7			$	93.6		$	(21.6	)		$	419.3
Accrued compensation and retirement costs	13.5			74.3				10.8			—				98.6
Income taxes payable	—			33.5				6.1			(39.6		)		—
Other current liabilities	52.2			133.9				36.5			(78.3		)		144.3
Current maturities of long-term debt and short-term borrowings	100.3			—				14.3			—				114.6
Total current liabilities	207.6			547.4				161.3			(139.5		)		776.8
Long-term debt	2,165.6			5.7				48.6			—				2,219.9
Intercompany borrowings	—			2,269.4				81.3			(2,350.7		)		—
Other long-term liabilities	284.1			526.1				45.9			—				856.1
Total Reliance shareholders’ equity	3,713.5			4,225.3				1,312.9			(5,538.2		)		3,713.5
Noncontrolling interests	—			6.1				3.2			—				9.3
Total equity	3,713.5			4,231.4				1,316.1			(5,538.2		)		3,722.8
Total liabilities and equity	$	6,370.8		$	7,580.0			$	1,653.2		$	(8,028.4	)		$	7,575.6

As of December 31, 2012

(in millions)

	Parent		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments				Consolidated

Assets
Cash and cash equivalents	$	28.1		$	13.1		$	56.4		$	—			$	97.6
Accounts receivable, less allowance for doubtful accounts	67.4			658.3			82.0			—				807.7
Inventories	50.3			1,068.4			153.6			—				1,272.3
Intercompany receivables	0.2			16.7			2.4			(19.3		)		—
Income taxes receivable	28.2			—			0.2			—				28.4
Other current assets	113.3			26.5			6.8			(75.2		)		71.4
Total current assets	287.5			1,783.0			301.4			(94.5		)		2,277.4

Investments in subsidiaries	3,722.7			257.8			—			(3,980.5		)		—
Property, plant and equipment, net	100.8			1,044.1			95.8			—				1,240.7
Goodwill	23.7			1,183.9			107.0			—				1,314.6
Intangible assets, net	11.0			794.6			130.9			—				936.5
Intercompany receivables	969.7			26.2			3.7			(999.6		)		—
Other assets	18.3			68.1			2.1			—				88.5
Total assets	$	5,133.7		$	5,157.7		$	640.9		$	(5,074.6	)		$	5,857.7

Liabilities & Equity
Accounts payable	$	25.7		$	195.2		$	54.0		$	(19.3	)		$	255.6
Accrued compensation and retirement costs	22.8			84.0			6.0			—				112.8
Other current liabilities	48.5			146.8			6.1			(75.2		)		126.2
Current maturities of long-term debt and short-term borrowings	75.3			—			8.3			—				83.6
Total current liabilities	172.3			426.0			74.4			(94.5		)		578.2
Long-term debt	1,123.8			—			—			—				1,123.8
Intercompany borrowings	—			864.3			135.3			(999.6		)		—
Other long-term liabilities	279.2			284.0			25.1			—				588.3
Total Reliance shareholders’ equity	3,558.4			3,577.4			403.1			(3,980.5		)		3,558.4
Noncontrolling interests	—			6.0			3.0			—				9.0
Total equity	3,558.4			3,583.4			406.1			(3,980.5		)		3,567.4
Total liabilities and equity	$	5,133.7		$	5,157.7		$	640.9		$	(5,074.6	)		$	5,857.7

Schedule of Condensed Consolidating Statement of Income

For the three months ended June 30, 2013

(in millions)

	Parent			Guarantor Subsidiaries				Non- Guarantor Subsidiaries				Consolidating Adjustments				Consolidated

Net sales	$	183.6			$	2,139.2			$	177.5			$	(52.0	)		$	2,448.3

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)	129.3				1,617.6				131.8				(52.0		)		1,826.7
Warehouse, delivery, selling, general and administrative	58.6				349.8				31.4				(13.8		)		426.0
Depreciation and amortization	5.1				40.9				4.1				—				50.1
	193.0				2,008.3				167.3				(65.8		)		2,302.8

Operating (loss) income	(9.4		)		130.9				10.2				13.8				145.5

Other income (expense):
Interest	(21.2		)		(4.9		)		(0.8		)		4.8				(22.1		)
Other income (expense), net	18.5				(0.2		)		(0.3		)		(18.6		)		(0.6		)
(Loss) income before equity in earnings of subsidiaries and income taxes	(12.1		)		125.8				9.1				—				122.8
Equity in earnings of subsidiaries	82.1				3.2				—				(85.3		)		—
Income before income taxes	70.0				129.0				9.1				(85.3		)		122.8
Income tax (benefit) provision	(11.0		)		49.5				2.4				—				40.9
Net income	81.0				79.5				6.7				(85.3		)		81.9
Less: Net income attributable to noncontrolling interests	—				0.8				0.1				—				0.9
Net income attributable to Reliance	$	81.0			$	78.7			$	6.6			$	(85.3	)		$	81.0

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

For the six months ended June 30, 2013

(in millions)

	Parent			Guarantor Subsidiaries				Non- Guarantor Subsidiaries				Consolidating Adjustments				Consolidated

Net sales	$	363.0			$	3,877.9			$	341.2			$	(108.5	)		$	4,473.6

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)	267.4				2,909.0				255.3				(108.5		)		3,323.2
Warehouse, delivery, selling, general and administrative	109.5				649.4				54.7				(29.9		)		783.7
Depreciation and amortization	9.1				74.5				7.6				—				91.2
	386.0				3,632.9				317.6				(138.4		)		4,198.1

Operating (loss) income	(23.0		)		245.0				23.6				29.9				275.5

Other income (expense):
Interest	(34.3		)		(7.4		)		(1.3		)		7.8				(35.2		)
Other income (expense), net	36.8				3.7				(0.5		)		(37.7		)		2.3
(Loss) income before equity in earnings of subsidiaries and income taxes	(20.5		)		241.3				21.8				—				242.6
Equity in earnings of subsidiaries	164.7				8.0				—				(172.7		)		—
Income before income taxes	144.2				249.3				21.8				(172.7		)		242.6
Income tax (benefit) provision	(20.5		)		91.7				5.0				—				76.2
Net income	164.7				157.6				16.8				(172.7		)		166.4
Less: Net income attributable to noncontrolling interests	—				1.6				0.1				—				1.7
Net income attributable to Reliance	$	164.7			$	156.0			$	16.7			$	(172.7	)		$	164.7

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

Schedule of Condensed Consolidating Cash Flow Statement

For the six months ended June 30, 2013

(in millions)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated

Cash provided by operating activities	$	94.8		$	186.4		$	2.7		$	—		$	283.9

Investing activities:
Purchases of property, plant and equipment	(6.2		)	(62.6		)	(5.5		)	—			(74.3		)
Acquisitions, net of cash acquired	(794.7		)	—			—			—			(794.7		)
Net advances to subsidiaries	(326.9		)	—			—			326.9			—
Other investing activities, net	0.1			8.3			0.1			—			8.5
Cash used in investing activities	(1,127.7		)	(54.3		)	(5.4		)	326.9			(860.5		)

Financing activities:
Net short-term debt (repayments) borrowings	—			(473.8		)	4.5			—			(469.3		)
Proceeds from long-term debt borrowings	2,257.9			—			—			—			2,257.9
Principal (payments) borrowings on long-term debt	(1,191.2		)	(0.5		)	0.1			—			(1,191.6		)
Dividends paid	(46.0		)	—			—			—			(46.0		)
Net intercompany borrowings	—			322.7			4.2			(326.9		)	—
Other financing activities, net	31.8			(1.4		)	—			—			30.4
Cash provided by (used in) financing activities	1,052.5			(153.0		)	8.8			(326.9		)	581.4
Effect of exchange rate changes on cash and cash equivalents	—			—			(1.6		)	—			(1.6		)
Increase (decrease) in cash and cash equivalents	19.6			(20.9		)	4.5			—			3.2
Cash and cash equivalents at beginning of year	28.1			13.1			56.4			—			97.6
Cash and cash equivalents at end of period	$	47.7		$	(7.8	)	$	60.9		$	—		$	100.8

For the six months ended June 30, 2012

(in millions)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Consolidating Adjustments			Consolidated

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, 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