Condensed Consolidating Financial Statements (Tables)

9 Months Ended

Sep. 30, 2015

Condensed Consolidating Financial Statements

Schedule of Condensed Consolidating Balance Sheet

Condensed Unaudited Consolidating Balance Sheet

As of September 30, 2015

(in millions)

						Non-
			Guarantor			Guarantor		Consolidating
	Parent		Subsidiaries			Subsidiaries		Adjustments			Consolidated

Assets
Cash and cash equivalents	$	13.6	$	(7.1	)	$	87.6	$	—		$	94.1
Accounts receivable, net	78.4		850.2			164.9		(19.2		)	1,074.3
Inventories	46.3		1,293.2			247.8		—			1,587.3
Income taxes receivable	82.2		—			—		(43.6		)	38.6
Other current assets	121.9		37.3			15.2		(78.7		)	95.7

Total current assets	342.4		2,173.6			515.5		(141.5		)	2,890.0

Investments in subsidiaries	5,011.9		286.0			—		(5,297.9		)	—
Property, plant and equipment, net	107.9		1,309.2			208.9		—			1,626.0
Goodwill	23.8		1,571.1			132.1		—			1,727.0
Intangible assets, net	14.6		987.9			138.2		—			1,140.7
Intercompany receivables	820.9		41.1			26.3		(888.3		)	—
Other assets	24.3		41.9			5.7		—			71.9

Total assets	$	6,345.8	$	6,410.8		$	1,026.7	$	(6,327.7	)	$	7,455.6


Liabilities & Equity
Accounts payable	$	32.4	$	234.4		$	78.9	$	(19.2	)	$	326.5
Accrued compensation and retirement costs	22.2		86.3			10.7		—			119.2
Other current liabilities	71.2		60.4			57.9		(46.5		)	143.0
Deferred income taxes	—		75.2			0.6		(75.8		)	—
Current maturities of long-term debt and short-term borrowings	50.0		—			59.4		—			109.4

Total current liabilities	175.8		456.3			207.5		(141.5		)	698.1
Long-term debt	1,935.9		5.7			44.5		—			1,986.1
Intercompany borrowings	—		733.2			155.1		(888.3		)	—
Other long-term liabilities	314.3		455.5			51.1		—			820.9
Total Reliance stockholders’ equity	3,919.8		4,753.6			544.3		(5,297.9		)	3,919.8
Noncontrolling interests	—		6.5			24.2		—			30.7

Total equity	3,919.8		4,760.1			568.5		(5,297.9		)	3,950.5

Total liabilities and equity	$	6,345.8	$	6,410.8		$	1,026.7	$	(6,327.7	)	$	7,455.6

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	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 September 30, 2015
(in millions)

							Non-
				Guarantor			Guarantor			Consolidating
	Parent			Subsidiaries			Subsidiaries			Adjustments			Consolidated

Net sales	$	175.1		$	1,936.9		$	222.2		$	(48.0	)	$	2,286.2

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)	122.5			1,398.1			175.3			(48.0		)	1,647.9
Warehouse, delivery, selling, general and administrative	38.2			329.5			37.1			24.1			428.9
Depreciation and amortization	3.9			44.8			5.7			—			54.4
Impairment of long-lived assets	—			53.3			—			—			53.3

	164.6			1,825.7			218.1			(23.9		)	2,184.5

Operating income	10.5			111.2			4.1			(24.1		)	101.7

Other income (expense):
Interest	(20.2		)	(4.8		)	(1.9		)	5.7			(21.2		)
Other (expense) income , net	(25.8		)	(0.2		)	4.8			18.4			(2.8		)

(Loss) income before equity in earnings of subsidiaries and income taxes	(35.5		)	106.2			7.0			—			77.7
Equity in earnings of subsidiaries	79.5			2.3			—			(81.8		)	—

Income before income taxes	44.0			108.5			7.0			(81.8		)	77.7
Income tax (benefit) provision	(7.4		)	30.8			1.5			—			24.9

Net income	51.4			77.7			5.5			(81.8		)	52.8
Less: Net income attributable to noncontrolling interests	—			1.3			0.1			—			1.4

Net income attributable to Reliance	$	51.4		$	76.4		$	5.4		$	(81.8	)	$	51.4

Comprehensive income (loss) attributable to Reliance	$	25.6		$	59.8		$	(16.7	)	$	(43.1	)	$	25.6

Condensed Unaudited Consolidating Statement of Comprehensive 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
Impairment of long-lived assets	—			—			—			—			—
	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	$	78.5		$	85.3		$	(1.4	)	$	(83.9	)	$	78.5

Condensed Unaudited Consolidating Statement of Comprehensive Income

For the Nine Months Ended September 30, 2015

(in millions)

							Non-
				Guarantor			Guarantor			Consolidating
	Parent			Subsidiaries			Subsidiaries			Adjustments			Consolidated

Net sales	$	552.8		$	6,243.2		$	679.5		$	(151.2	)	$	7,324.3

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)	406.0			4,580.4			524.3			(151.3		)	5,359.4
Warehouse, delivery, selling, general and administrative	119.6			1,094.8			111.7			(10.3		)	1,315.8
Depreciation and amortization	12.9			134.6			17.1			—			164.6
Impairment of long-lived assets	—			53.3			—			—			53.3

	538.5			5,863.1			653.1			(161.6		)	6,893.1

Operating income	14.3			380.1			26.4			10.4			431.2

Other income (expense):
Interest	(60.4		)	(15.8		)	(5.2		)	18.1			(63.3		)
Other income (expense), net	11.6			(0.6		)	13.8			(28.5		)	(3.7		)

(Loss) income before equity in earnings of subsidiaries and income taxes	(34.5		)	363.7			35.0			—			364.2
Equity in earnings of subsidiaries	252.3			8.4			—			(260.7		)	—

Income before income taxes	217.8			372.1			35.0			(260.7		)	364.2
Income tax (benefit) provision	(25.1		)	131.5			10.5			—			116.9

Net income	242.9			240.6			24.5			(260.7		)	247.3
Less: Net income attributable to noncontrolling interests	—			4.0			0.4			—			4.4

Net income attributable to Reliance	$	242.9		$	236.6		$	24.1		$	(260.7	)	$	242.9

Comprehensive income (loss) attributable to Reliance	$	199.7		$	206.7		$	(16.2	)	$	(190.5	)	$	199.7

Condensed Unaudited Consolidating Statement of Comprehensive Income

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
Impairment of long-lived assets	—			—			—			—			—

	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	$	267.6		$	243.8		$	13.3		$	(257.1	)	$	267.6

Schedule of Condensed Consolidating Cash Flow Statement

Condensed Unaudited Consolidating Cash Flow Statement

For the Nine Months Ended September 30, 2015

(in millions)

							Non-
				Guarantor			Guarantor			Consolidating
	Parent			Subsidiaries			Subsidiaries			Adjustments			Consolidated

Net cash provided by operating activities	$	114.4		$	562.6		$	39.3		$	—		$	716.3

Investing activities:
Purchases of property, plant and equipment	(14.2		)	(97.1		)	(8.1		)	—			(119.4		)
Net repayments from subsidiaries	490.5			—			—			(490.5		)	—
Other investing activities, net	(5.9		)	11.4			0.1			—			5.6

Net cash provided by (used in) investing activities	470.4			(85.7		)	(8.0		)	(490.5		)	(113.8		)

Financing activities:
Net short-term debt borrowings	—			—			9.9			—			9.9
Proceeds from long-term debt borrowings	510.0			—			—			—			510.0
Principal payments on long-term debt	(727.3		)	(1.7		)	—			—			(729.0		)
Dividends and dividend equivalents paid	(90.7		)	—			—			—			(90.7		)
Share repurchases	(313.9		)	—			—			—			(313.9		)
Net intercompany repayments	—			(474.0		)	(16.5		)	490.5			—
Other financing activities, net	8.8			—			(3.3		)	—			5.5

Net cash used in financing activities	(613.1		)	(475.7		)	(9.9		)	490.5			(608.2		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(6.4		)	—			(6.4		)

(Decrease) increase in cash and cash equivalents	(28.3		)	1.2			15.0			—			(12.1		)
Cash and cash equivalents at beginning of year	41.9			(8.3		)	72.6			—			106.2

Cash and cash equivalents at end of period	$	13.6		$	(7.1	)	$	87.6		$	—		$	94.1

Condensed Unaudited Consolidating Cash Flow Statement

For the Nine Months Ended September 30, 2014

(in millions)

							Non-
				Guarantor			Guarantor			Consolidating
	Parent			Subsidiaries			Subsidiaries			Adjustments			Consolidated

Net 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

Net 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 and dividend equivalents paid	(81.7		)	—			—			—			(81.7		)
Net intercompany borrowings	—			163.2			66.0			(229.2		)	—
Other financing activities, net	28.7			(2.9		)	—			—			25.8

Net 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