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Commitments and Contingencies
12 Months Ended
Dec. 31, 2013
Commitments and Contingencies.  
Commitments and Contingencies

Note 14. Commitments and Contingencies

Lease Commitments

        We lease land, buildings and equipment under non-cancelable operating leases expiring in various years through 2031. Rent expense for leases that contain scheduled rent increases are recorded on a straight-line basis. Several of the leases have renewal options providing for additional lease periods. Future minimum payments, by year and in the aggregate, under the non-cancelable leases with initial or remaining terms of one year or more, consisted of the following as of December 31, 2013:

 
  Operating
Leases
 
 
  (in millions)
 

2014

  $ 58.8  

2015

    50.5  

2016

    39.5  

2017

    31.3  

2018

    24.8  

Thereafter

    44.6  
       

 

  $ 249.5  
       
       

        Total rental expense amounted to $79.9 million, $73.6 million and $70.1 million for 2013, 2012 and 2011, respectively.

        Included in the amounts above for operating leases are lease payments to various related parties, who are not executive officers of the Company, in the amounts of $4.8 million, $4.6 million and $4.8 million for 2013, 2012 and 2011, respectively. These related party leases are for buildings leased to certain of the companies we have acquired and expire in various years through 2021.

Purchase Commitments

        As of December 31, 2013, we had commitments to purchase minimum quantities of certain aerospace materials, which we entered into to secure material for corresponding long-term sales commitments we have entered into with our customers. The total amount of the minimum commitments based on current pricing is estimated at approximately $51.6 million, with amounts in each of the years 2014 through 2016 being $17.2 million.

Collective Bargaining Agreements

        As of December 31, 2013, approximately 11% of our total employees are covered by 40 collective bargaining agreements, which expire at various times over the next six years. Approximately 2.2% of our employees are covered by 14 different collective bargaining agreements that expire during 2014.

Environmental Contingencies

        We are subject to extensive and changing federal, state, local and foreign laws and regulations designed to protect the environment, including those relating to the use, handling, storage, discharge and disposal of hazardous substances and the remediation of environmental contamination. Our operations use minimal amounts of such substances.

        We believe we are in material compliance with environmental laws and regulations; however, we are from time to time involved in administrative and judicial proceedings and inquiries relating to environmental matters. Some of our owned or leased properties are located in industrial areas with histories of heavy industrial use. We may incur some environmental liabilities because of the location of these properties. In addition, we are currently involved with certain environmental remediation projects related to activities at former manufacturing operations of EMJ, our 100%-owned subsidiary, that were sold many years prior to Reliance's acquisition of EMJ in 2006. Although the potential cleanup costs could be significant, EMJ had insurance policies in place at the time it owned the manufacturing operations that are expected to cover the majority of the related costs. We do not expect that these obligations will have a material adverse impact on our consolidated financial position, results of operations or cash flows.

Legal Matters

        We are involved in certain litigation with a few former employees who started their own steel distribution business and allege we have engaged in anti-competitive practices. We believe the claims made in the matter to be without merit and we intend to vigorously defend against them. We cannot predict the outcome of this litigation or estimate the range of our potential exposure.

        From time to time, we are named as a defendant in legal actions. Generally, these actions arise out of our normal course of business. Except as disclosed above, we are not a party to any pending legal proceedings other than routine litigation incidental to the business. We expect that these matters will be resolved without having a material adverse effect on our results of operations or financial condition. We maintain liability insurance against risks arising out of our normal course of business.