Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2014

Condensed Consolidating Financial Statements

Schedule of Condensed Consolidating Balance Sheet

As of September 30, 2014

(in millions)

						Non-
			Guarantor			Guarantor		Consolidating
	Parent		Subsidiaries			Subsidiaries		Adjustments			Consolidated

Assets
Cash and cash equivalents	$	30.4	$	(1.9	)	$	72.2	$	—		$	100.7
Accounts receivable, less allowance for doubtful accounts	82.7		1,022.5			169.5		(21.5		)	1,253.2
Inventories	69.4		1,642.5			232.5		—			1,944.4
Income taxes receivable	47.1		—			—		(47.1		)	—
Other current assets	115.3		40.9			15.1		(75.2		)	96.1
Total current assets	344.9		2,704.0			489.3		(143.8		)	3,394.4

Investments in subsidiaries	4,797.7		201.7			—		(4,999.4		)	—
Property, plant and equipment, net	103.1		1,318.1			203.7		—			1,624.9
Goodwill	23.8		1,555.1			128.6		—			1,707.5
Intangible assets, net	31.7		1,044.8			145.8		—			1,222.3
Intercompany receivables	1,471.2		84.5			10.1		(1,565.8		)	—
Other assets	22.3		57.9			5.4		—			85.6
Total assets	$	6,794.7	$	6,966.1		$	982.9	$	(6,709.0	)	$	8,034.7

Liabilities & Equity
Accounts payable	$	41.7	$	397.9		$	57.1	$	(21.5	)	$	475.2
Accrued compensation and retirement costs	17.6		92.9			14.2		—			124.7
Other current liabilities	93.0		60.8			79.9		(47.1		)	186.6
Deferred income taxes	—		75.2			—		(75.2		)	—
Current maturities of long-term debt and short-term borrowings	37.5		—			54.2		—			91.7
Total current liabilities	189.8		626.8			205.4		(143.8		)	878.2
Long-term debt	2,175.2		5.7			49.4		—			2,230.3
Intercompany borrowings	—		1,337.9			227.9		(1,565.8		)	—
Other long-term liabilities	320.4		442.4			43.8		—			806.6
Total Reliance shareholders’ equity	4,109.3		4,546.6			452.8		(4,999.4		)	4,109.3
Noncontrolling interests	—		6.7			3.6		—			10.3
Total equity	4,109.3		4,553.3			456.4		(4,999.4		)	4,119.6
Total liabilities and equity	$	6,794.7	$	6,966.1		$	982.9	$	(6,709.0	)	$	8,034.7

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	64.4		1,170.9			101.3		(353.1		)	983.5
Inventories	52.6		1,344.8			142.6		—			1,540.0
Income taxes receivable	34.4		—			—		(0.5		)	33.9
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 September 30, 2014
(in millions)

							Non-
				Guarantor			Guarantor			Consolidating
	Parent			Subsidiaries			Subsidiaries			Adjustments			Consolidated

Net sales	$	195.5		$	2,338.6		$	231.3		$	(60.3	)	$	2,705.1

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)	149.2			1,762.0			176.1			(60.4		)	2,026.9
Warehouse, delivery, selling, general and administrative	59.6			386.5			38.2			(11.4		)	472.9
Depreciation and amortization	5.1			43.6			5.3			—			54.0
	213.9			2,192.1			219.6			(71.8		)	2,553.8

Operating (loss) income	(18.4		)	146.5			11.7			11.5			151.3

Other income (expense):
Interest	(19.7		)	(7.5		)	(1.7		)	8.1			(20.8		)
Other income (expense), net	16.9			(1.1		)	3.7			(19.6		)	(0.1		)
(Loss) income before equity in earnings of subsidiaries and income taxes	(21.2		)	137.9			13.7			—			130.4
Equity in earnings of subsidiaries	102.4			4.4			—			(106.8		)	—
Income before income taxes	81.2			142.3			13.7			(106.8		)	130.4
Income tax (benefit) provision	(14.3		)	45.1			2.7			—			33.5
Net income	95.5			97.2			11.0			(106.8		)	96.9
Less: Net income attributable to noncontrolling interests	—			1.4			—			—			1.4
Net income attributable to Reliance	$	95.5		$	95.8		$	11.0		$	(106.8	)	$	95.5
Comprehensive income (loss) attributable to Reliance	$	90.8		$	95.9		$	(1.4	)	$	(106.8	)	$	78.5

For the Three Months Ended September 30, 2013

(in millions)

							Non-
				Guarantor			Guarantor			Consolidating
	Parent			Subsidiaries			Subsidiaries			Adjustments			Consolidated

Net sales	$	177.2		$	2,124.8		$	188.3		$	(46.8	)	$	2,443.5

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)	133.0			1,575.8			138.6			(46.9		)	1,800.5
Warehouse, delivery, selling, general and administrative	50.2			360.2			33.3			(13.7		)	430.0
Depreciation and amortization	4.2			41.4			4.3			—			49.9
	187.4			1,977.4			176.2			(60.6		)	2,280.4

Operating (loss) income	(10.2		)	147.4			12.1			13.8			163.1

Other income (expense):
Interest	(20.6		)	(6.2		)	(1.3		)	6.5			(21.6		)
Other income, net	17.4			1.9			2.2			(20.3		)	1.2
(Loss) income before equity in earnings of subsidiaries and income taxes	(13.4		)	143.1			13.0			—			142.7
Equity in earnings of subsidiaries	96.8			3.2			—			(100.0		)	—
Income before income taxes	83.4			146.3			13.0			(100.0		)	142.7
Income tax (benefit) provision	(11.7		)	55.8			2.6			—			46.7
Net income	95.1			90.5			10.4			(100.0		)	96.0
Less: Net income attributable to noncontrolling interests	—			0.8			0.1			—			0.9
Net income attributable to Reliance	$	95.1		$	89.7		$	10.3		$	(100.0	)	$	95.1
Comprehensive income attributable to Reliance	$	93.6		$	89.7		$	22.8		$	(100.0	)	$	106.1

For the Nine Months Ended September 30, 2014

(in millions)

							Non-
				Guarantor			Guarantor			Consolidating
	Parent			Subsidiaries			Subsidiaries			Adjustments			Consolidated

Net sales	$	569.7		$	6,894.9		$	592.5		$	(182.2	)	$	7,874.9

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)	431.3			5,179.2			448.0			(182.3		)	5,876.2
Warehouse, delivery, selling, general and administrative	147.3			1,155.2			100.5			(44.2		)	1,358.8
Depreciation and amortization	14.6			129.4			14.6			—			158.6
	593.2			6,463.8			563.1			(226.5		)	7,393.6

Operating (loss) income	(23.5		)	431.1			29.4			44.3			481.3

Other income (expense):
Interest	(58.2		)	(21.3		)	(4.2		)	22.5			(61.2		)
Other income (expense), net	60.5			(0.9		)	5.8			(66.8		)	(1.4		)
(Loss) income before equity in earnings of subsidiaries and income taxes	(21.2		)	408.9			31.0			—			418.7
Equity in earnings of subsidiaries	263.6			11.0			—			(274.6		)	—
Income before income taxes	242.4			419.9			31.0			(274.6		)	418.7
Income tax (benefit) provision	(36.8		)	163.3			9.6			—			136.1
Net income	279.2			256.6			21.4			(274.6		)	282.6
Less: Net income attributable to noncontrolling interests	—			3.3			0.1			—			3.4
Net income attributable to Reliance	$	279.2		$	253.3		$	21.3		$	(274.6	)	$	279.2
Comprehensive income attributable to Reliance	$	275.4		$	253.5		$	13.3		$	(274.6	)	$	267.6

For the Nine Months Ended September 30, 2013

(in millions)

							Non-
				Guarantor			Guarantor			Consolidating
	Parent			Subsidiaries			Subsidiaries			Adjustments			Consolidated

Net sales	$	540.2		$	6,002.7		$	529.5		$	(155.3	)	$	6,917.1

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)	400.4			4,484.8			393.9			(155.4		)	5,123.7
Warehouse, delivery, selling, general and administrative	159.7			1,009.6			88.0			(43.6		)	1,213.7
Depreciation and amortization	13.3			115.9			11.9			—			141.1
	573.4			5,610.3			493.8			(199.0		)	6,478.5

Operating (loss) income	(33.2		)	392.4			35.7			43.7			438.6

Other income (expense):
Interest	(54.9		)	(13.6		)	(2.6		)	14.3			(56.8		)
Other income, net	54.2			5.6			1.7			(58.0		)	3.5
(Loss) income before equity in earnings of subsidiaries and income taxes	(33.9		)	384.4			34.8			—			385.3
Equity in earnings of subsidiaries	261.5			11.2			—			(272.7		)	—
Income before income taxes	227.6			395.6			34.8			(272.7		)	385.3
Income tax (benefit) provision	(32.2		)	147.5			7.6			—			122.9
Net income	259.8			248.1			27.2			(272.7		)	262.4
Less: Net income attributable to noncontrolling interests	—			2.4			0.2			—			2.6
Net income attributable to Reliance	$	259.8		$	245.7		$	27.0		$	(272.7	)	$	259.8
Comprehensive income attributable to Reliance	$	259.8		$	245.9		$	18.1		$	(272.7	)	$	251.1

Schedule of Condensed Consolidating Cash Flow Statement

For the Nine Months Ended September 30, 2014

(in millions)

							Non-
				Guarantor			Guarantor			Consolidating
	Parent			Subsidiaries			Subsidiaries			Adjustments			Consolidated

Cash provided by (used in) operating activities	$	139.2		$	(0.3	)	$	23.9		$	—		$	162.8

Investing activities:
Purchases of property, plant and equipment	(13.5		)	(113.1		)	(7.8		)	—			(134.4		)
Acquisitions, net of cash acquired	—			(32.3		)	(112.7		)	—			(145.0		)
Net advances to subsidiaries	(229.2		)	—			—			229.2			—
Other investing activities, net	(0.7		)	(14.2		)	33.1			—			18.2
Cash used in investing activities	(243.4		)	(159.6		)	(87.4		)	229.2			(261.2		)

Financing activities:
Net short-term debt borrowings	—			—			4.3			—			4.3
Proceeds from long-term debt borrowings	535.0			—			0.7			—			535.7
Principal payments on long-term debt	(367.1		)	(1.5		)	—			—			(368.6		)
Dividends paid	(81.7		)	—			—			—			(81.7		)
Net intercompany borrowings	—			163.2			66.0			(229.2		)	—
Other financing activities, net	28.7			(2.9		)	—			—			25.8
Cash provided by financing activities	114.9			158.8			71.0			(229.2		)	115.5
Effect of exchange rate changes on cash and cash equivalents	—			—			—			—			—
Increase (decrease) in cash and cash equivalents	10.7			(1.1		)	7.5			—			17.1
Cash and cash equivalents at beginning of year	19.7			(0.8		)	64.7			—			83.6
Cash and cash equivalents at end of period	$	30.4		$	(1.9	)	$	72.2		$	—		$	100.7

For the Nine Months Ended September 30, 2013

(in millions)

							Non-
				Guarantor			Guarantor			Consolidating
	Parent			Subsidiaries			Subsidiaries			Adjustments			Consolidated

Cash provided by operating activities	$	108.6		$	334.1		$	70.3		$	—		$	513.0

Investing activities:
Purchases of property, plant and equipment	(10.4		)	(99.1		)	(9.2		)	—			(118.7		)
Acquisitions, net of cash acquired	(796.8		)	—			—			—			(796.8		)
Net advances to subsidiaries	(155.9		)	—			—			155.9			—
Other investing activities, net	0.1			9.8			7.2			—			17.1
Cash used in investing activities	(963.0		)	(89.3		)	(2.0		)	155.9			(898.4		)

Financing activities:
Net short-term debt (repayments) borrowings	—			(473.8		)	3.8			—			(470.0		)
Proceeds from long-term debt borrowings	2,297.9			—			—			—			2,297.9
Principal payments on long-term debt	(1,412.8		)	(0.5		)	(0.7		)	—			(1,414.0		)
Dividends paid	(71.4		)	—			—			—			(71.4		)
Net intercompany borrowings (repayments)	—			214.4			(58.5		)	(155.9		)	—
Other financing activities, net	52.1			(1.8		)	—			—			50.3
Cash provided by (used in) financing activities	865.8			(261.7		)	(55.4		)	(155.9		)	392.8
Effect of exchange rate changes on cash and cash equivalents	—			—			(0.1		)	—			(0.1		)
Increase (decrease) in cash and cash equivalents	11.4			(16.9		)	12.8			—			7.3
Cash and cash equivalents at beginning of year	28.1			13.1			56.4			—			97.6
Cash and cash equivalents at end of period	$	39.5		$	(3.8	)	$	69.2		$	—		$	104.9