Condensed Consolidating Financial Statements (Tables)

6 Months Ended

Jun. 30, 2015

Condensed Consolidating Financial Statements

Schedule of Condensed Consolidating Balance Sheet

Condensed Unaudited Consolidating Balance Sheet

As of June 30, 2015

(in millions)

					Non-
			Guarantor		Guarantor		Consolidating
	Parent		Subsidiaries		Subsidiaries		Adjustments			Consolidated

Assets
Cash and cash equivalents	$	44.1	$	1.7	$	86.1	$	—		$	131.9
Accounts receivable, net	79.1		887.6		170.4		(20.0		)	1,117.1
Inventories	53.6		1,367.3		251.9		—			1,672.8
Income taxes receivable	63.2		—		—		(48.5		)	14.7
Other current assets	126.7		36.1		16.3		(76.7		)	102.4

Total current assets	366.7		2,292.7		524.7		(145.2		)	3,038.9

Investments in subsidiaries	4,895.5		299.9		—		(5,195.4		)	—
Property, plant and equipment, net	104.0		1,330.9		213.7		—			1,648.6
Goodwill	23.8		1,570.9		137.7		—			1,732.4
Intangible assets, net	15.1		1,034.6		146.2		—			1,195.9
Intercompany receivables	1,120.2		33.7		23.2		(1,177.1		)	—
Other assets	25.1		44.6		5.7		—			75.4

Total assets	$	6,550.4	$	6,607.3	$	1,051.2	$	(6,517.7	)	$	7,691.2


Liabilities & Equity
Accounts payable	$	36.6	$	269.5	$	84.9	$	(20.0	)	$	371.0
Accrued compensation and retirement costs	17.8		79.1		9.9		—			106.8
Other current liabilities	54.3		61.7		59.8		(49.4		)	126.4
Deferred income taxes	—		75.2		0.6		(75.8		)	—
Current maturities of long-term debt and short-term borrowings	50.0		—		57.1		—			107.1

Total current liabilities	158.7		485.5		212.3		(145.2		)	711.3
Long-term debt	2,043.5		5.7		45.1		—			2,094.3
Intercompany borrowings	—		1,023.4		153.7		(1,177.1		)	—
Other long-term liabilities	315.9		454.9		52.5		—			823.3
Total Reliance stockholders’ equity	4,032.3		4,631.2		564.2		(5,195.4		)	4,032.3
Noncontrolling interests	—		6.6		23.4		—			30.0

Total equity	4,032.3		4,637.8		587.6		(5,195.4		)	4,062.3

Total liabilities and equity	$	6,550.4	$	6,607.3	$	1,051.2	$	(6,517.7	)	$	7,691.2

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	16.1		1,056.7			154.6		—			1,227.4
Intercompany receivables	1,361.7		26.1			18.2		(1,406.0		)	—
Other assets	22.7		52.5			5.9		—			81.1

Total assets	$	6,731.4	$	6,747.4		$	1,033.0	$	(6,689.4	)	$	7,822.4


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	2,156.6		5.7			45.8		—			2,208.1
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 stockholders’ 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	$	6,731.4	$	6,747.4		$	1,033.0	$	(6,689.4	)	$	7,822.4

Schedule of Condensed Consolidating Statement of Comprehensive Income

Condensed Unaudited Consolidating Statement of Comprehensive Income

For the Three Months Ended June 30, 2015

(in millions)

							Non-
				Guarantor			Guarantor			Consolidating
	Parent			Subsidiaries			Subsidiaries			Adjustments			Consolidated

Net sales	$	185.6		$	2,069.2		$	219.4		$	(50.5	)	$	2,423.7

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)	128.4			1,521.4			168.6			(50.6		)	1,767.8
Warehouse, delivery, selling, general and administrative	41.5			379.9			37.2			(17.8		)	440.8
Depreciation and amortization	3.9			45.3			5.7			—			54.9

	173.8			1,946.6			211.5			(68.4		)	2,263.5

Operating income	11.8			122.6			7.9			17.9			160.2

Other income (expense):
Interest	(20.6		)	(5.1		)	(1.8		)	6.0			(21.5		)
Other income (expense), net	18.5			(0.7		)	3.3			(23.9		)	(2.8		)

Income before equity in earnings of subsidiaries and income taxes	9.7			116.8			9.4			—			135.9
Equity in earnings of subsidiaries	74.0			2.6			—			(76.6		)	—

Income before income taxes	83.7			119.4			9.4			(76.6		)	135.9
Income tax (benefit) provision	(6.5		)	45.7			5.1			—			44.3

Net income	90.2			73.7			4.3			(76.6		)	91.6
Less: Net income attributable to noncontrolling interests	—			1.3			0.1			—			1.4

Net income attributable to Reliance	$	90.2		$	72.4		$	4.2		$	(76.6	)	$	90.2

Comprehensive income attributable to Reliance	$	97.6		$	76.8		$	6.3		$	(83.1	)	$	97.6

Condensed Unaudited Consolidating Statement of Comprehensive 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	$	110.7		$	84.8		$	17.5		$	(102.3	)	$	110.7

Condensed Unaudited Consolidating Statement of Comprehensive Income

For the Six Months Ended June 30, 2015

(in millions)

							Non-
				Guarantor			Guarantor			Consolidating
	Parent			Subsidiaries			Subsidiaries			Adjustments			Consolidated

Net sales	$	377.7		$	4,306.3		$	457.3		$	(103.2	)	$	5,038.1

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)	283.5			3,182.3			349.0			(103.3		)	3,711.5
Warehouse, delivery, selling, general and administrative	81.4			765.3			74.6			(34.4		)	886.9
Depreciation and amortization	9.0			89.8			11.4			—			110.2

	373.9			4,037.4			435.0			(137.7		)	4,708.6

Operating income	3.8			268.9			22.3			34.5			329.5

Other income (expense):
Interest	(40.2		)	(11.0		)	(3.3		)	12.4			(42.1		)
Other income (expense), net	37.4			(0.4		)	9.0			(46.9		)	(0.9		)

Income before equity in earnings of subsidiaries and income taxes	1.0			257.5			28.0			—			286.5
Equity in earnings of subsidiaries	172.8			6.1			—			(178.9		)	—

Income before income taxes	173.8			263.6			28.0			(178.9		)	286.5
Income tax (benefit) provision	(17.7		)	100.7			9.0			—			92.0

Net income	191.5			162.9			19.0			(178.9		)	194.5
Less: Net income attributable to noncontrolling interests	—			2.7			0.3			—			3.0

Net income attributable to Reliance	$	191.5		$	160.2		$	18.7		$	(178.9	)	$	191.5

Comprehensive income attributable to Reliance	$	174.1		$	146.9		$	0.5		$	(147.4	)	$	174.1

Condensed Unaudited Consolidating Statement of Comprehensive Income

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 (expense), 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	$	189.1		$	158.5		$	14.7		$	(173.2	)	$	189.1

Schedule of Condensed Consolidating Cash Flow Statement

Condensed Unaudited Consolidating Cash Flow Statement

For the Six Months Ended June 30, 2015

(in millions)

							Non-
				Guarantor			Guarantor			Consolidating
	Parent			Subsidiaries			Subsidiaries			Adjustments			Consolidated

Net cash provided by operating activities	$	130.1		$	304.2		$	29.6		$	—		$	463.9

Investing activities:
Purchases of property, plant and equipment	(7.4		)	(65.0		)	(4.7		)	—			(77.1		)
Net repayments from subsidiaries	241.5			—			—			(241.5		)	—
Other investing activities, net	—			(1.5		)	—			—			(1.5		)

Net cash provided by (used in) investing activities	234.1			(66.5		)	(4.7		)	(241.5		)	(78.6		)

Financing activities:
Net short-term debt borrowings	—			—			6.8			—			6.8
Proceeds from long-term debt borrowings	412.0			—			—			—			412.0
Principal payments on long-term debt	(520.8		)	(1.0		)	—			—			(521.8		)
Dividends and dividend equivalents paid	(61.4		)	—			—			—			(61.4		)
Share repurchases	(200.0		)	—			—			—			(200.0		)
Net intercompany repayments	—			(226.7		)	(14.8		)	241.5			—
Other financing activities, net	8.2			—			(1.9		)	—			6.3

Net cash used in financing activities	(362.0		)	(227.7		)	(9.9		)	241.5			(358.1		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(1.5		)	—			(1.5		)

Increase in cash and cash equivalents	2.2			10.0			13.5			—			25.7
Cash and cash equivalents at beginning of year	41.9			(8.3		)	72.6			—			106.2

Cash and cash equivalents at end of period	$	44.1		$	1.7		$	86.1		$	—		$	131.9

Condensed Unaudited Consolidating Cash Flow Statement

For the Six Months Ended June 30, 2014

(in millions)

							Non-
				Guarantor			Guarantor			Consolidating
	Parent			Subsidiaries			Subsidiaries			Adjustments			Consolidated

Net 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

Net 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 and dividend equivalents 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

Net 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