Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2015

Condensed Consolidating Financial Statements

Schedule of Condensed Consolidating Balance Sheet

Condensed Unaudited Consolidating Balance Sheet
As of March 31, 2015

(in millions)

						Non-
			Guarantor			Guarantor		Consolidating
	Parent		Subsidiaries			Subsidiaries		Adjustments			Consolidated

Assets
Cash and cash equivalents	$	26.6	$	(3.5	)	$	78.5	$	—		$	101.6
Accounts receivable, net	85.8		975.9			169.9		(17.5		)	1,214.1
Inventories	59.7		1,502.1			241.5		—			1,803.3
Income taxes receivable	21.3		—			—		(21.3		)	—
Other current assets	118.9		36.1			17.6		(76.6		)	96.0
Total current assets	312.3		2,510.6			507.5		(115.4		)	3,215.0

Investments in subsidiaries	5,004.5		286.1			—		(5,290.6		)	—
Property, plant and equipment, net	103.1		1,325.6			215.2		—			1,643.9
Goodwill	23.8		1,570.9			135.6		—			1,730.3
Intangible assets, net	28.9		1,045.6			145.7		—			1,220.2
Intercompany receivables	1,187.1		29.6			26.5		(1,243.2		)	—
Other assets	23.4		49.4			5.4		—			78.2
Total assets	$	6,683.1	$	6,817.8		$	1,035.9	$	(6,649.2	)	$	7,887.6

Liabilities & Equity
Accounts payable	$	36.1	$	323.1		$	75.7	$	(17.5	)	$	417.4
Accrued compensation and retirement costs	13.5		72.7			8.9		—			95.1
Other current liabilities	69.1		56.6			68.5		(22.1		)	172.1
Deferred income taxes	—		75.2			0.6		(75.8		)	—
Current maturities of long-term debt and short-term borrowings	50.0		—			50.2		—			100.2
Total current liabilities	168.7		527.6			203.9		(115.4		)	784.8
Long-term debt	2,217.4		5.7			45.4		—			2,268.5
Intercompany borrowings	—		1,083.5			159.7		(1,243.2		)	—
Other long-term liabilities	316.3		455.6			51.8		—			823.7
Total Reliance shareholders’ equity	3,980.7		4,738.7			551.9		(5,290.6		)	3,980.7
Noncontrolling interests	—		6.7			23.2		—			29.9
Total equity	3,980.7		4,745.4			575.1		(5,290.6		)	4,010.6
Total liabilities and equity	$	6,683.1	$	6,817.8		$	1,035.9	$	(6,649.2	)	$	7,887.6

Condensed Unaudited Consolidating Balance Sheet
As of December 31, 2014

(in millions)

						Non-
			Guarantor			Guarantor		Consolidating
	Parent		Subsidiaries			Subsidiaries		Adjustments			Consolidated

Assets
Cash and cash equivalents	$	41.9	$	(8.3	)	$	72.6	$	—		$	106.2
Accounts receivable, net	72.7		923.1			164.8		(16.0		)	1,144.6
Inventories	57.6		1,454.2			240.3		—			1,752.1
Other current assets	139.3		38.5			16.1		(75.7		)	118.2
Total current assets	311.5		2,407.5			493.8		(91.7		)	3,121.1

Investments in subsidiaries	4,891.8		299.9			—		(5,191.7		)	—
Property, plant and equipment, net	103.8		1,333.7			218.9		—			1,656.4
Goodwill	23.8		1,571.0			141.6		—			1,736.4
Intangible assets, net	30.3		1,056.7			154.6		—			1,241.6
Intercompany receivables	1,361.7		26.1			18.2		(1,406.0		)	—
Other assets	22.7		52.5			5.9		—			81.1
Total assets	$	6,745.6	$	6,747.4		$	1,033.0	$	(6,689.4	)	$	7,836.6

Liabilities & Equity
Accounts payable	$	29.2	$	212.3		$	60.6	$	(15.6	)	$	286.5
Accrued compensation and retirement costs	23.9		89.9			14.6		—			128.4
Other current liabilities	65.2		26.1			62.6		0.1			154.0
Deferred income taxes	—		75.1			0.6		(75.7		)	—
Current maturities of long-term debt and short-term borrowings	43.8		—			50.1		—			93.9
Total current liabilities	162.1		403.4			188.5		(91.2		)	662.8
Long-term debt	2,170.8		5.7			45.8		—			2,222.3
Intercompany borrowings	—		1,242.5			163.5		(1,406.0		)	—
Other long-term liabilities	313.7		456.2			54.1		(0.4		)	823.6
Total Reliance shareholders’ equity	4,099.0		4,633.4			558.4		(5,191.8		)	4,099.0
Noncontrolling interests	—		6.2			22.7		—			28.9
Total equity	4,099.0		4,639.6			581.1		(5,191.8		)	4,127.9
Total liabilities and equity	$	6,745.6	$	6,747.4		$	1,033.0	$	(6,689.4	)	$	7,836.6

Schedule of Condensed Consolidating Statement of Comprehensive Income

Condensed Unaudited Consolidating Statement of Comprehensive Income
For the three months ended March 31, 2015
(in millions)

							Non-
				Guarantor			Guarantor			Consolidating
	Parent			Subsidiaries			Subsidiaries			Adjustments			Consolidated

Net sales	$	192.1		$	2,237.1		$	237.9		$	(52.7	)	$	2,614.4

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)	155.1			1,660.9			180.4			(52.7		)	1,943.7
Warehouse, delivery, selling, general and administrative	39.9			385.4			37.4			(16.6		)	446.1
Depreciation and amortization	5.1			44.5			5.7			—			55.3
	200.1			2,090.8			223.5			(69.3		)	2,445.1

Operating (loss) income	(8.0		)	146.3			14.4			16.6			169.3

Other income (expense):
Interest	(19.6		)	(5.9		)	(1.5		)	6.4			(20.6		)
Other income, net	18.9			0.3			5.7			(23.0		)	1.9
(Loss) income before equity in earnings of subsidiaries and income taxes	(8.7		)	140.7			18.6			—			150.6
Equity in earnings of subsidiaries	98.8			3.5			—			(102.3		)	—
Income before income taxes	90.1			144.2			18.6			(102.3		)	150.6
Income tax (benefit) provision	(11.2		)	55.0			3.9			—			47.7
Net income	101.3			89.2			14.7			(102.3		)	102.9
Less: Net income attributable to noncontrolling interests	—			1.4			0.2			—			1.6
Net income attributable to Reliance	$	101.3		$	87.8		$	14.5		$	(102.3	)	$	101.3
Comprehensive income (loss) attributable to Reliance	$	76.5		$	70.1		$	(5.8	)	$	(64.3	)	$	76.5

Condensed Unaudited Consolidating Statement of Comprehensive Income
For the three months ended March 31, 2014

(in millions)

							Non-
				Guarantor			Guarantor			Consolidating
	Parent			Subsidiaries			Subsidiaries			Adjustments			Consolidated

Net sales	$	182.4		$	2,244.9		$	187.6		$	(61.9	)	$	2,553.0

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)	146.1			1,678.6			143.0			(61.9		)	1,905.8
Warehouse, delivery, selling, general and administrative	45.1			381.1			31.2			(16.4		)	441.0
Depreciation and amortization	4.5			42.9			4.5			—			51.9
	195.7			2,102.6			178.7			(78.3		)	2,398.7

Operating (loss) income	(13.3		)	142.3			8.9			16.4			154.3

Other income (expense):
Interest	(19.2		)	(6.2		)	(1.2		)	6.4			(20.2		)
Other income (expense), net	20.5			(0.2		)	2.5			(22.8		)	—
(Loss) income before equity in earnings of subsidiaries and income taxes	(12.0		)	135.9			10.2			—			134.1
Equity in earnings of subsidiaries	84.7			2.8			—			(87.5		)	—
Income before income taxes	72.7			138.7			10.2			(87.5		)	134.1
Income tax (benefit) provision	(14.5		)	56.8			3.9			—			46.2
Net income	87.2			81.9			6.3			(87.5		)	87.9
Less: Net income attributable to noncontrolling interests	—			0.7			—			—			0.7
Net income attributable to Reliance	$	87.2		$	81.2		$	6.3		$	(87.5	)	$	87.2
Comprehensive income (loss) attributable to Reliance	$	78.4		$	73.7		$	(2.8	)	$	(70.9	)	$	78.4

Schedule of Condensed Consolidating Cash Flow Statement

Condensed Unaudited Consolidating Cash Flow Statement
For the three months ended March 31, 2015

(in millions)

							Non-
				Guarantor			Guarantor			Consolidating
	Parent			Subsidiaries			Subsidiaries			Adjustments			Consolidated

Net cash (used in) provided by operating activities	$	(41.0	)	$	189.0		$	23.4		$	—		$	171.4

Investing activities:
Purchases of property, plant and equipment	(3.1		)	(25.1		)	(3.1		)	—			(31.3		)
Net repayments from subsidiaries	174.6			—			—			(174.6		)	—
Other investing activities, net	—			4.1			—			—			4.1
Net cash provided by (used in) investing activities	171.5			(21.0		)	(3.1		)	(174.6		)	(27.2		)

Financing activities:
Net short-term debt borrowings	—			—			1.1			—			1.1
Proceeds from long-term debt borrowings	363.0			—			—			—			363.0
Principal payments on long-term debt	(310.3		)	(0.7		)	—			—			(311.0		)
Dividends paid	(31.7		)	—			—			—			(31.7		)
Share repurchases	(171.2		)	—			—			—			(171.2		)
Net intercompany repayments	—			(162.5		)	(12.1		)	174.6			—
Other financing activities, net	4.4			—			(0.6		)	—			3.8
Net cash used in financing activities	(145.8		)	(163.2		)	(11.6		)	174.6			(146.0		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(2.8		)	—			(2.8		)
(Decrease) increase in cash and cash equivalents	(15.3		)	4.8			5.9			—			(4.6		)
Cash and cash equivalents at beginning of year	41.9			(8.3		)	72.6			—			106.2
Cash and cash equivalents at end of period	$	26.6		$	(3.5	)	$	78.5		$	—		$	101.6

Condensed Unaudited Consolidating Cash Flow Statement
For the three months ended March 31, 2014

(in millions)

							Non-
				Guarantor			Guarantor			Consolidating
	Parent			Subsidiaries			Subsidiaries			Adjustments			Consolidated

Net cash provided by (used in) operating activities	$	164.6		$	(94.5	)	$	(1.3	)	$	—		$	68.8

Investing activities:
Purchases of property, plant and equipment	(3.3		)	(23.7		)	(1.9		)	—			(28.9		)
Net advances to subsidiaries	(134.6		)	—			—			134.6			—
Other investing activities, net	0.1			(9.2		)	—			—			(9.1		)
Net cash used in investing activities	(137.8		)	(32.9		)	(1.9		)	134.6			(38.0		)

Financing activities:
Net short-term debt borrowings	—			—			0.3			—			0.3
Proceeds from long-term debt borrowings	160.0			—			—			—			160.0
Principal payments on long-term debt	(141.3		)	(0.4		)	—			—			(141.7		)
Dividends paid	(27.1		)	—			—			—			(27.1		)
Net intercompany borrowings	—			119.1			15.5			(134.6		)	—
Other financing activities, net	8.7			—			—			—			8.7
Net cash provided by financing activities	0.3			118.7			15.8			(134.6		)	0.2
Effect of exchange rate changes on cash and cash equivalents	—			—			(1.0		)	—			(1.0		)
Increase (decrease) in cash and cash equivalents	27.1			(8.7		)	11.6			—			30.0
Cash and cash equivalents at beginning of year	19.7			(0.8		)	64.7			—			83.6
Cash and cash equivalents at end of period	$	46.8		$	(9.5	)	$	76.3		$	—		$	113.6