Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 30, 2014

Condensed Consolidating Financial Statements

Schedule of Condensed Consolidating Balance Sheet

As of June 30, 2014

(in millions)

						Non-
			Guarantor			Guarantor		Consolidating
	Parent		Subsidiaries			Subsidiaries		Adjustments			Consolidated

Assets
Cash and cash equivalents	$	49.4	$	(11.0	)	$	75.1	$	—		$	113.5
Accounts receivable, less allowance for doubtful accounts	79.7		992.9			96.6		—			1,169.2
Inventories	64.9		1,549.5			155.5		—			1,769.9
Income taxes receivable	52.2		—			—		(52.2		)	—
Intercompany receivables	0.6		17.7			1.4		(19.7		)	—
Other current assets	115.0		50.1			14.6		(76.9		)	102.8
Total current assets	361.8		2,599.2			343.2		(148.8		)	3,155.4

Investments in subsidiaries	4,645.3		219.2			—		(4,864.5		)	—
Property, plant and equipment, net	103.9		1,306.5			197.4		—			1,607.8
Goodwill	23.8		1,549.8			102.7		—			1,676.3
Intangible assets, net	33.0		1,037.0			116.2		—			1,186.2
Intercompany receivables	1,365.0		84.5			10.2		(1,459.7		)	—
Other assets	22.6		61.1			5.3		—			89.0
Total assets	$	6,555.4	$	6,857.3		$	775.0	$	(6,473.0	)	$	7,714.7

Liabilities & Equity
Accounts payable	$	40.4	$	414.6		$	22.5	$	(19.7	)	$	457.8
Accrued compensation and retirement costs	13.3		81.9			9.8		—			105.0
Other current liabilities	63.7		82.6			68.1		(53.9		)	160.5
Deferred income taxes	—		75.2			—		(75.2		)	—
Current maturities of long-term debt and short-term borrowings	31.5		—			7.7		—			39.2
Total current liabilities	148.9		654.3			108.1		(148.8		)	762.5
Long-term debt	2,040.6		5.7			46.9		—			2,093.2
Intercompany borrowings	—		1,312.2			147.5		(1,459.7		)	—
Other long-term liabilities	321.6		445.3			37.9		—			804.8
Total Reliance shareholders’ equity	4,044.3		4,433.3			431.2		(4,864.5		)	4,044.3
Noncontrolling interests	—		6.5			3.4		—			9.9
Total equity	4,044.3		4,439.8			434.6		(4,864.5		)	4,054.2
Total liabilities and equity	$	6,555.4	$	6,857.3		$	775.0	$	(6,473.0	)	$	7,714.7

As of December 31, 2013

(in millions)

						Non-
			Guarantor			Guarantor		Consolidating
	Parent		Subsidiaries			Subsidiaries		Adjustments			Consolidated

Assets
Cash and cash equivalents	$	19.7	$	(0.8	)	$	64.7	$	—		$	83.6
Accounts receivable, less allowance for doubtful accounts	64.1		820.3			99.1		—			983.5
Inventories	52.6		1,344.8			142.6		—			1,540.0
Income taxes receivable	34.4		—			—		(0.5		)	33.9
Intercompany receivables	0.3		350.6			2.2		(353.1		)	—
Other current assets	124.8		40.8			8.9		(76.6		)	97.9
Total current assets	295.9		2,555.7			317.5		(430.2		)	2,738.9

Investments in subsidiaries	4,647.7		312.4			—		(4,960.1		)	—
Property, plant and equipment, net	100.8		1,298.7			204.4		—			1,603.9
Goodwill	23.8		1,555.7			112.1		—			1,691.6
Intangible assets, net	17.4		1,077.8			118.6		—			1,213.8
Intercompany receivables	1,219.4		22.4			394.3		(1,636.1		)	—
Other assets	20.8		66.6			5.4		—			92.8
Total assets	$	6,325.8	$	6,889.3		$	1,152.3	$	(7,026.4	)	$	7,341.0

Liabilities & Equity
Accounts payable	$	29.1	$	185.8		$	418.5	$	(353.1	)	$	280.3
Accrued compensation and retirement costs	21.1		85.9			12.5		—			119.5
Other current liabilities	53.5		63.1			22.4		(1.9		)	137.1
Deferred income taxes	—		75.2			—		(75.2		)	—
Current maturities of long-term debt and short-term borrowings	25.3		—			11.2		—			36.5
Total current liabilities	129.0		410.0			464.6		(430.2		)	573.4
Long-term debt	2,019.2		5.7			47.6		—			2,072.5
Intercompany borrowings	—		1,550.6			85.5		(1,636.1		)	—
Other long-term liabilities	303.0		466.5			41.2		—			810.7
Total Reliance shareholders’ equity	3,874.6		4,450.1			510.0		(4,960.1		)	3,874.6
Noncontrolling interests	—		6.4			3.4		—			9.8
Total equity	3,874.6		4,456.5			513.4		(4,960.1		)	3,884.4
Total liabilities and equity	$	6,325.8	$	6,889.3		$	1,152.3	$	(7,026.4	)	$	7,341.0

Schedule of Condensed Consolidating Statement of Income

For the three months ended June 30, 2014
(in millions)

							Non-
				Guarantor			Guarantor			Consolidating
	Parent			Subsidiaries			Subsidiaries			Adjustments			Consolidated

Net sales	$	191.8		$	2,311.4		$	173.6		$	(60.0	)	$	2,616.8

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)	136.0			1,738.6			128.9			(60.0		)	1,943.5
Warehouse, delivery, selling, general and administrative	42.6			387.6			31.1			(16.4		)	444.9
Depreciation and amortization	5.0			42.9			4.8			—			52.7
	183.6			2,169.1			164.8			(76.4		)	2,441.1

Operating income	8.2			142.3			8.8			16.4			175.7

Other income (expense):
Interest	(19.3		)	(7.6		)	(1.3		)	8.0			(20.2		)
Other income (expense), net	23.1			0.4			(0.4		)	(24.4		)	(1.3		)
Income before equity in earnings of subsidiaries and income taxes	12.0			135.1			7.1			—			154.2
Equity in earnings of subsidiaries	76.5			3.8			—			(80.3		)	—
Income before income taxes	88.5			138.9			7.1			(80.3		)	154.2
Income tax (benefit) provision	(8.0		)	61.4			3.0			—			56.4
Net income	96.5			77.5			4.1			(80.3		)	97.8
Less: Net income attributable to noncontrolling interests	—			1.2			0.1			—			1.3
Net income attributable to Reliance	$	96.5		$	76.3		$	4.0		$	(80.3	)	$	96.5
Comprehensive income attributable to Reliance	$	97.2		$	76.3		$	17.5		$	(80.3	)	$	110.7

For the three months ended June 30, 2013

(in millions)

							Non-
				Guarantor			Guarantor			Consolidating
	Parent			Subsidiaries			Subsidiaries			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
Comprehensive income (loss) attributable to Reliance	$	81.0		$	78.7		$	(3.2	)	$	(85.3	)	$	71.2

For the six months ended June 30, 2014

(in millions)

							Non-
				Guarantor			Guarantor			Consolidating
	Parent			Subsidiaries			Subsidiaries			Adjustments			Consolidated

Net sales	$	374.2		$	4,556.3		$	361.2		$	(121.9	)	$	5,169.8

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)	282.1			3,417.2			271.9			(121.9		)	3,849.3
Warehouse, delivery, selling, general and administrative	87.7			768.7			62.3			(32.8		)	885.9
Depreciation and amortization	9.5			85.8			9.3			—			104.6
	379.3			4,271.7			343.5			(154.7		)	4,839.8

Operating (loss) income	(5.1		)	284.6			17.7			32.8			330.0

Other income (expense):
Interest	(38.5		)	(13.8		)	(2.5		)	14.4			(40.4		)
Other income, net	43.6			0.2			2.1			(47.2		)	(1.3		)
Income before equity in earnings of subsidiaries and income taxes	—			271.0			17.3			—			288.3
Equity in earnings of subsidiaries	161.2			6.6			—			(167.8		)	—
Income before income taxes	161.2			277.6			17.3			(167.8		)	288.3
Income tax (benefit) provision	(22.5		)	118.2			6.9			—			102.6
Net income	183.7			159.4			10.4			(167.8		)	185.7
Less: Net income attributable to noncontrolling interests	—			1.9			0.1			—			2.0
Net income attributable to Reliance	$	183.7		$	157.5		$	10.3		$	(167.8	)	$	183.7
Comprehensive income attributable to Reliance	$	184.6		$	157.6		$	14.7		$	(167.8	)	$	189.1

For the six months ended June 30, 2013

(in millions)

							Non-
				Guarantor			Guarantor			Consolidating
	Parent			Subsidiaries			Subsidiaries			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
Comprehensive income (loss) attributable to Reliance	$	163.2		$	156.2		$	(1.7	)	$	(172.7	)	$	145.0

Schedule of Condensed Consolidating Cash Flow Statement

For the six months ended June 30, 2014

							Non-
				Guarantor			Guarantor			Consolidating
	Parent			Subsidiaries			Subsidiaries			Adjustments			Consolidated

Cash provided by (used in) operating activities	$	167.8		$	(63.2	)	$	4.9		$	—		$	109.5

Investing activities:
Purchases of property, plant and equipment	(10.4		)	(72.7		)	(3.8		)	—			(86.9		)
Net advances to subsidiaries	(123.0		)	—			—			123.0			—
Other investing activities, net	0.1			(9.1		)	26.2			—			17.2
Cash (used in) provided by investing activities	(133.3		)	(81.8		)	22.4			123.0			(69.7		)

Financing activities:
Net short-term debt repayments	—			—			(3.6		)	—			(3.6		)
Proceeds from long-term debt borrowings	297.0			—			—			—			297.0
Principal payments on long-term debt	(269.5		)	(0.8		)	—			—			(270.3		)
Dividends paid	(54.4		)	—			—			—			(54.4		)
Net intercompany borrowings (repayments)	—			137.5			(14.5		)	(123.0		)	—
Other financing activities, net	22.1			(1.9		)	—			—			20.2
Cash (used in) provided by financing activities	(4.8		)	134.8			(18.1		)	(123.0		)	(11.1		)
Effect of exchange rate changes on cash and cash equivalents	—			—			1.2			—			1.2
Increase (decrease) in cash and cash equivalents	29.7			(10.2		)	10.4			—			29.9
Cash and cash equivalents at beginning of year	19.7			(0.8		)	64.7			—			83.6
Cash and cash equivalents at end of period	$	49.4		$	(11.0	)	$	75.1		$	—		$	113.5

For the six months ended June 30, 2013

(in millions)

							Non-
				Guarantor			Guarantor			Consolidating
	Parent			Subsidiaries			Subsidiaries			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