Condensed Consolidating Financial Statements (Tables)

12 Months Ended

Dec. 31, 2015

Condensed Consolidating Financial Statements

Schedule of Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet

As of December 31, 2015

(in millions)


					Non-
			Guarantor		Guarantor		Consolidating
	Parent		Subsidiaries		Subsidiaries		Adjustments		Consolidated

Assets
Cash and cash equivalents	$	10.7	$	(1.0)	$	94.6	$	—	$	104.3
Accounts receivable, net		66.5		701.8		152.3		(4.0)		916.6
Inventories		56.0		1,145.1		234.9		—		1,436.0
Income taxes receivable		38.2		—		(1.7)		—		36.5
Other current assets		36.4		15.1		12.6		(3.3)		60.8
Total current assets		207.8		1,861.0		492.7		(7.3)		2,554.2

Investments in subsidiaries		5,046.2		328.0		—		(5,374.2)		—
Property, plant and equipment, net		115.5		1,311.3		208.7		—		1,635.5
Goodwill		23.8		1,571.1		129.9		—		1,724.8
Intangible assets, net		14.0		977.5		133.9		—		1,125.4
Intercompany receivables		614.2		45.4		30.5		(690.1)		—
Other assets		24.6		50.9		6.2		—		81.7
Total assets	$	6,046.1	$	6,145.2	$	1,001.9	$	(6,071.6)	$	7,121.6

Liabilities & Equity
Accounts payable	$	25.3	$	160.0	$	65.7	$	(4.0)	$	247.0
Accrued compensation and retirement costs		29.5		79.1		10.1		—		118.7
Other current liabilities		54.0		15.3		57.2		(3.3)		123.2
Current maturities of long-term debt and short-term borrowings		400.0		—		100.8		—		500.8
Total current liabilities		508.8		254.4		233.8		(7.3)		989.7
Long-term debt		1,417.3		5.7		4.9		—		1,427.9
Intercompany borrowings		—		547.6		142.5		(690.1)		—
Other long-term liabilities		205.9		505.0		50.4		—		761.3
Total Reliance stockholders’ equity		3,914.1		4,824.5		549.7		(5,374.2)		3,914.1
Noncontrolling interests		—		8.0		20.6		—		28.6
Total equity		3,914.1		4,832.5		570.3		(5,374.2)		3,942.7
Total liabilities and equity	$	6,046.1	$	6,145.2	$	1,001.9	$	(6,071.6)	$	7,121.6

Condensed 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 Consolidating Statement of Comprehensive Income

For the year ended December 31, 2015

(in millions)


					Non-
			Guarantor		Guarantor		Consolidating
	Parent		Subsidiaries		Subsidiaries		Adjustments		Consolidated

Net sales	$	710.9	$	7,978.3	$	864.6	$	(203.3)	$	9,350.5

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)		503.1		5,833.9		670.0		(203.4)		6,803.6
Warehouse, delivery, selling, general and administrative		168.1		1,435.8		140.0		(15.4)		1,728.5
Depreciation and amortization		16.8		179.1		22.6		—		218.5
Impairment of long-lived assets		—		51.8		1.5		—		53.3
		688.0		7,500.6		834.1		(218.8)		8,803.9

Operating income		22.9		477.7		30.5		15.5		546.6

Other income (expense):
Interest		(80.3)		(19.2)		(6.7)		21.9		(84.3)
Other income (expense), net		17.2		(0.7)		17.3		(37.4)		(3.6)
(Loss) income before equity in earnings of subsidiaries and income taxes		(40.2)		457.8		41.1		—		458.7
Equity in earnings of subsidiaries		297.8		13.1		—		(310.9)		—
Income before income taxes		257.6		470.9		41.1		(310.9)		458.7
Income tax (benefit) provision		(53.9)		182.5		13.9		—		142.5
Net income		311.5		288.4		27.2		(310.9)		316.2
Less: Net income attributable to noncontrolling interests		—		4.7		—		—		4.7
Net income attributable to Reliance	$	311.5	$	283.7	$	27.2	$	(310.9)	$	311.5
Comprehensive income (loss) attributable to Reliance	$	260.7	$	250.1	$	(18.9)	$	(231.2)	$	260.7

Condensed Consolidating Statement of Comprehensive Income

For the year ended December 31, 2014

(in millions)


					Non-
			Guarantor		Guarantor		Consolidating
	Parent		Subsidiaries		Subsidiaries		Adjustments		Consolidated

Net sales	$	750.2	$	9,110.2	$	825.9	$	(234.7)	$	10,451.6

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)		557.0		6,885.4		623.0		(234.8)		7,830.6
Warehouse, delivery, selling, general and administrative		157.3		1,545.9		140.9		(54.3)		1,789.8
Depreciation and amortization		19.8		174.0		20.0		—		213.8
		734.1		8,605.3		783.9		(289.1)		9,834.2

Operating income		16.1		504.9		42.0		54.4		617.4

Other income (expense):
Interest		(78.1)		(28.3)		(5.7)		30.2		(81.9)
Other income (expense), net		67.7		(2.7)		30.4		(84.6)		10.8
Income before equity in earnings of subsidiaries and income taxes		5.7		473.9		66.7		—		546.3
Equity in earnings of subsidiaries		325.1		21.2		—		(346.3)		—
Income before income taxes		330.8		495.1		66.7		(346.3)		546.3
Income tax (benefit) provision		(40.7)		190.1		20.6		—		170.0
Net income		371.5		305.0		46.1		(346.3)		376.3
Less: Net income attributable to noncontrolling interests		—		4.4		0.4		—		4.8
Net income attributable to Reliance	$	371.5	$	300.6	$	45.7	$	(346.3)	$	371.5
Comprehensive income attributable to Reliance	$	367.5	$	280.4	$	27.7	$	(346.3)	$	329.3

Condensed Consolidating Statement of Comprehensive Income

For the year ended December 31, 2013

(in millions)


					Non-
			Guarantor		Guarantor		Consolidating
	Parent		Subsidiaries		Subsidiaries		Adjustments		Consolidated

Net sales	$	704.5	$	8,021.6	$	710.1	$	(212.4)	$	9,223.8

Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)		509.7		5,999.2		529.7		(212.4)		6,826.2
Warehouse, delivery, selling, general and administrative		200.7		1,385.5		117.8		(65.6)		1,638.4
Depreciation and amortization		17.5		158.6		16.3		—		192.4
Impairment of long-lived assets		—		14.9		—		—		14.9
		727.9		7,558.2		663.8		(278.0)		8,671.9

Operating (loss) income		(23.4)		463.4		46.3		65.6		551.9

Other income (expense):
Interest		(74.7)		(19.9)		(4.2)		21.3		(77.5)
Other income, net		75.7		5.5		9.6		(86.9)		3.9
(Loss) income before equity in earnings of subsidiaries and income taxes		(22.4)		449.0		51.7		—		478.3
Equity in earnings of subsidiaries		300.3		12.4		—		(312.7)		—
Income before income taxes		277.9		461.4		51.7		(312.7)		478.3
Income tax (benefit) provision		(43.7)		181.0		16.3		—		153.6
Net income		321.6		280.4		35.4		(312.7)		324.7
Less: Net income attributable to noncontrolling interests		—		2.8		0.3		—		3.1
Net income attributable to Reliance	$	321.6	$	277.6	$	35.1	$	(312.7)	$	321.6
Comprehensive income attributable to Reliance	$	318.9	$	293.5	$	16.7	$	(312.7)	$	316.4

Schedule of Condensed Consolidating Cash Flow Statement

Condensed Consolidating Cash Flow Statement

For the year ended December 31, 2015

(in millions)


					Non-
			Guarantor		Guarantor		Consolidating
	Parent		Subsidiaries		Subsidiaries		Adjustments		Consolidated

Net cash provided by operating activities	$	148.8	$	805.0	$	71.2	$	—	$	1,025.0

Investing activities:
Purchases of property, plant and equipment		(21.5)		(136.1)		(14.6)		—		(172.2)
Net repayments from subsidiaries		697.2		—		—		(697.2)		—
Other investing activities, net		(2.6)		4.8		0.1		—		2.3
Net cash provided by (used in) investing activities		673.1		(131.3)		(14.5)		(697.2)		(169.9)

Financing activities:
Net short-term debt borrowings		—		—		12.7		—		12.7
Proceeds from long-term debt borrowings		573.0		—		—		—		573.0
Principal payments on long-term debt		(959.8)		(2.5)		—		—		(962.3)
Dividends and dividend equivalents paid		(120.1)		—		—		—		(120.1)
Share repurchases		(355.5)		—		—		—		(355.5)
Net intercompany repayments		—		(663.9)		(33.3)		697.2		—
Other financing activities, net		9.3		—		(5.6)		—		3.7
Net cash used in financing activities		(853.1)		(666.4)		(26.2)		697.2		(848.5)
Effect of exchange rate changes on cash and cash equivalents		—		—		(8.5)		—		(8.5)
(Decrease) increase in cash and cash equivalents		(31.2)		7.3		22.0		—		(1.9)
Cash and cash equivalents at beginning of year		41.9		(8.3)		72.6		—		106.2
Cash and cash equivalents at end of year	$	10.7	$	(1.0)	$	94.6	$	—	$	104.3

Condensed Consolidating Cash Flow Statement

For the year ended December 31, 2014

(in millions)


					Non-
			Guarantor		Guarantor		Consolidating
	Parent		Subsidiaries		Subsidiaries		Adjustments		Consolidated

Net cash provided by operating activities	$	118.4	$	193.2	$	44.4	$	—	$	356.0

Investing activities:
Purchases of property, plant and equipment		(18.2)		(159.2)		(13.0)		—		(190.4)
Acquisitions, net of cash acquired		-		(92.0)		(116.2)		—		(208.2)
Net advances to subsidiaries		(119.7)		—		—		119.7		—
Other investing activities, net		(0.8)		(3.6)		38.0		—		33.6
Net cash used in investing activities		(138.7)		(254.8)		(91.2)		119.7		(365.0)

Financing activities:
Net short-term debt borrowings		—		—		1.7		—		1.7
Proceeds from long-term debt borrowings		719.0		—		-		—		719.0
Principal payments on long-term debt		(549.3)		(2.0)		(0.9)		—		(552.2)
Dividends paid		(108.7)		—		—		—		(108.7)
Net intercompany borrowings		—		64.4		55.3		(119.7)		—
Other financing activities, net		(18.5)		(8.3)		—		-		(26.8)
Net cash provided by financing activities		42.5		54.1		56.1		(119.7)		33.0
Effect of exchange rate changes on cash and cash equivalents		—		—		(1.4)		—		(1.4)
Increase (decrease) in cash and cash equivalents		22.2		(7.5)		7.9		—		22.6
Cash and cash equivalents at beginning of year		19.7		(0.8)		64.7		—		83.6
Cash and cash equivalents at end of year	$	41.9	$	(8.3)	$	72.6	$	—	$	106.2

Condensed Consolidating Cash Flow Statement

For the year ended December 31, 2013

(in millions)


					Non-
			Guarantor		Guarantor		Consolidating
	Parent		Subsidiaries		Subsidiaries		Adjustments		Consolidated

Net cash provided by operating activities	$	102.8	$	458.5	$	72.0	$	—	$	633.3

Investing activities:
Purchases of property, plant and equipment		(14.0)		(139.9)		(14.1)		—		(168.0)
Acquisition, net of cash acquired		(821.1)		—		—		—		(821.1)
Net advances to subsidiaries		(85.3)		—		—		85.3		—
Other investing activities, net		0.1		2.8		7.2		—		10.1
Net cash used in investing activities		(920.3)		(137.1)		(6.9)		85.3		(979.0)

Financing activities:
Net short-term debt (repayments) borrowings		—		(473.8)		0.8		—		(473.0)
Proceeds from long-term debt borrowings		2,297.9		—		—		—		2,297.9
Principal payments on long-term debt		(1,452.8)		(0.6)		(1.1)		—		(1,454.5)
Dividends paid		(96.9)		—		—		—		(96.9)
Net intercompany (repayments) borrowings		—		141.4		(56.1)		(85.3)		—
Other financing activities, net		60.9		(2.3)		—		—		58.6
Net cash provided by (used in) financing activities		809.1		(335.3)		(56.4)		(85.3)		332.1
Effect of exchange rate changes on cash and cash equivalents		—		—		(0.4)		—		(0.4)
(Decrease) increase in cash and cash equivalents		(8.4)		(13.9)		8.3		—		(14.0)
Cash and cash equivalents at beginning of year		28.1		13.1		56.4		—		97.6
Cash and cash equivalents at end of year	$	19.7	$	(0.8)	$	64.7	$	—	$	83.6