Condensed Consolidating Financial Statements (Tables)

3 Months Ended

Mar. 31, 2013

Condensed Consolidating Financial Statements

Schedule of Condensed Consolidating Balance Sheet

As of March 31, 2013

(in millions)

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Consolidating Adjustments			Consolidated
Assets
Cash and cash equivalents	$	33.7	$	13.2	$	53.2	$	—		$	100.1
Accounts receivable, less allowance for doubtful accounts	77.4		767.4		95.6		—			940.4
Inventories	58.8		1,123.4		135.4		—			1,317.6
Intercompany receivables	0.5		18.9		2.5		(21.9		)	—
Income taxes receivable	38.8		—		1.8		(37.4		)	3.2
Other current assets	103.8		29.3		8.8		(76.8		)	65.1
Total current assets	313.0		1,952.2		297.3		(136.1		)	2,426.4
Investments in subsidiaries	3,524.7		257.8		—		(3,782.5		)	—
Property, plant and equipment, net	100.5		1,040.5		94.6		—			1,235.6
Goodwill	23.8		1,183.9		104.7		—			1,312.4
Intangible assets, net	10.3		785.6		126.4		—			922.3
Intercompany receivables	1,186.3		20.4		3.5		(1,210.2		)	—
Other assets	18.6		63.7		2.1		—			84.4
Total assets	$	5,177.2	$	5,304.1	$	628.6	$	(5,128.8	)	$	5,981.1
Liabilities & Equity
Accounts payable	$	39.9	$	319.0	$	52.5	$	(21.9	)	$	389.5
Accrued compensation and retirement costs	9.4		53.7		3.9		—			67.0
Income taxes payable	—		37.4		—		(37.4		)	—
Other current liabilities	58.6		46.7		24.5		(1.7		)	128.1
Deferred income taxes	—		75.2		—		(75.2		)	—
Current maturities of long-term debt and short-term borrowings	75.3		—		11.3		—			86.6
Total current liabilities	183.2		532.0		92.2		(136.2		)	671.2
Long-term debt	1,063.8		—		—		—			1,063.8
Intercompany borrowings	—		1,104.5		105.7		(1,210.2		)	—
Other long-term liabilities	283.4		282.4		24.4		—			590.2
Total Reliance shareholders’ equity	3,646.8		3,379.2		403.2		(3,782.4		)	3,646.8
Noncontrolling interests	—		6.0		3.1		—			9.1
Total equity	3,646.8		3,385.2		406.3		(3,782.4		)	3,655.9
Total liabilities and equity	$	5,177.2	$	5,304.1	$	628.6	$	(5,128.8	)	$	5,981.1

As of December 31, 2012

(in millions)

	Parent		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		ConsolidatingAdjustments			Consolidated
Assets
Cash and cash equivalents	$	28.1	$	13.1	$	56.4	$	—		$	97.6
Accounts receivable, less allowance for doubtful accounts	67.4		658.3		82.0		—			807.7
Inventories	50.3		1,068.4		153.6		—			1,272.3
Intercompany receivables	0.2		16.7		2.4		(19.3		)	—
Income taxes receivable	28.2		—		0.2		—			28.4
Other current assets	113.3		26.5		6.8		(75.2		)	71.4
Total current assets	287.5		1,783.0		301.4		(94.5		)	2,277.4
Investments in subsidiaries	3,722.7		257.8		—		(3,980.5		)	—
Property, plant and equipment, net	100.8		1,044.1		95.8		—			1,240.7
Goodwill	23.7		1,183.9		107.0		—			1,314.6
Intangible assets, net	11.0		794.6		130.9		—			936.5
Intercompany receivables	969.7		26.2		3.7		(999.6		)	—
Other assets	18.3		68.1		2.1		—			88.5
Total assets	$	5,133.7	$	5,157.7	$	640.9	$	(5,074.6	)	$	5,857.7
Liabilities & Equity
Accounts payable	$	25.7	$	195.2	$	54.0	$	(19.3	)	$	255.6
Accrued compensation and retirement costs	22.8		84.0		6.0		—			112.8
Other current liabilities	48.5		71.6		6.1		—			126.2
Deferred income taxes	—		75.2		—		(75.2		)	—
Current maturities of long-term debt and short-term borrowings	75.3		—		8.3		—			83.6
Total current liabilities	172.3		426.0		74.4		(94.5		)	578.2
Long-term debt	1,123.8		—		—		—			1,123.8
Intercompany borrowings	—		864.3		135.3		(999.6		)	—
Other long-term liabilities	279.2		284.0		25.1		—			588.3
Total Reliance shareholders’ equity	3,558.4		3,577.4		403.1		(3,980.5		)	3,558.4
Noncontrolling interests	—		6.0		3.0		—			9.0
Total equity	3,558.4		3,583.4		406.1		(3,980.5		)	3,567.4
Total liabilities and equity	$	5,133.7	$	5,157.7	$	640.9	$	(5,074.6	)	$	5,857.7

Schedule of Condensed Consolidating Statement of Income

For the three months ended March 31, 2013
(in millions)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			ConsolidatingAdjustments			Consolidated
Net sales	$	179.4		$	1,738.7		$	163.7		$	(56.5	)	$	2,025.3
Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)	138.1			1,291.4			123.5			(56.5		)	1,496.5
Warehouse, delivery, selling, general and administrative	50.9			299.6			23.3			(16.1		)	357.7
Depreciation and amortization	4.0			33.6			3.5			—			41.1
	193.0			1,624.6			150.3			(72.6		)	1,895.3
Operating (loss) income	(13.6		)	114.1			13.4			16.1			130.0
Other income (expense):
Interest	(13.1		)	(2.5		)	(0.5		)	3.0			(13.1		)
Other income (expense), net	18.3			3.9			(0.2		)	(19.1		)	2.9
(Loss) income before equity in earnings of subsidiaries and income taxes	(8.4		)	115.5			12.7			—			119.8
Equity in earnings of subsidiaries	82.6			4.8			—			(87.4		)	—
Income before income taxes	74.2			120.3			12.7			(87.4		)	119.8
Income tax (benefit) provision	(9.5		)	42.2			2.6			—			35.3
Net income	83.7			78.1			10.1			(87.4		)	84.5
Less: Net income attributable to noncontrolling interests	—			0.8			—			—			0.8
Net income attributable to Reliance	$	83.7		$	77.3		$	10.1		$	(87.4	)	$	83.7

For the three months ended March 31, 2012

(in millions)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			ConsolidatingAdjustments			Consolidated
Net sales	$	192.7		$	1,972.1		$	191.6		$	(68.1	)	$	2,288.3
Costs and expenses:
Cost of sales (exclusive of depreciation and amortization shown below)	153.7			1,487.8			137.2			(68.2		)	1,710.5
Warehouse, delivery, selling, general and administrative	15.0			344.4			24.8			(26.5		)	357.7
Depreciation and amortization	3.5			29.2			2.8			—			35.5
	172.2			1,861.4			164.8			(94.7		)	2,103.7
Operating income	20.5			110.7			26.8			26.6			184.6
Other income (expense):
Interest	(14.4		)	(3.9		)	(0.7		)	4.5			(14.5		)
Other income, net	33.9			2.7			1.0			(31.1		)	6.5
Income before equity in earnings of subsidiaries and income taxes	40.0			109.5			27.1			—			176.6
Equity in earnings of subsidiaries	68.0			9.9			—			(77.9		)	—
Income before income taxes	108.0			119.4			27.1			(77.9		)	176.6
Income tax (benefit) provision	(8.2		)	62.2			4.7			—			58.7
Net income	116.2			57.2			22.4			(77.9		)	117.9
Less: Net income attributable to noncontrolling interests	—			1.5			0.2			—			1.7
Net income attributable to Reliance	$	116.2		$	55.7		$	22.2		$	(77.9	)	$	116.2

Schedule of Condensed Consolidating Cash Flow Statement

For the three months ended March 31, 2013

(in millions)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			ConsolidatingAdjustments			Consolidated
Operating activities:
Net income	$	83.7		$	78.1		$	10.1		$	(87.4	)	$	84.5
Equity in earnings of subsidiaries	(82.6		)	(5.1		)	—			87.4			(0.3		)
Other operating activities, net	111.8			(139.5		)	15.7			—			(12.0		)
Cash provided by (used in) operating activities	112.9			(66.5		)	25.8			—			72.2
Investing activities:
Purchases of property, plant and equipment	(3.0		)	(21.6		)	(2.2		)	—			(26.8		)
Net advances to subsidiaries	(52.2		)	—			—			52.2			—
Other investing activities, net	—			7.3			—			—			7.3
Cash used in investing activities	(55.2		)	(14.3		)	(2.2		)	52.2			(19.5		)
Financing activities:
Net short-term debt borrowings	—			—			3.1			—			3.1
Proceeds from long-term debt borrowings	50.0			—			—			—			50.0
Principal payments on long-term debt	(110.0		)	—			—			—			(110.0		)
Dividends paid	(22.9		)	—			—			—			(22.9		)
Net intercompany borrowings (repayments)	—			81.6			(29.4		)	(52.2		)	—
Other financing activities, net	30.8			(0.7		)	—			—			30.1
Cash (used in) provided by financing activities	(52.1		)	80.9			(26.3		)	(52.2		)	(49.7		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(0.5		)	—			(0.5		)
Increase (decrease) in cash and cash equivalents	5.6			0.1			(3.2		)	—			2.5
Cash and cash equivalents at beginning of year	28.1			13.1			56.4			—			97.6
Cash and cash equivalents at end of period	$	33.7		$	13.2		$	53.2		$	—		$	100.1

For the three months ended March 31, 2012

(in millions)

	Parent			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			ConsolidatingAdjustments			Consolidated
Operating activities:
Net income	$	116.2		$	57.2		$	22.4		$	(77.9	)	$	117.9
Equity in earnings of subsidiaries	(68.0		)	(10.4		)	—			77.9			(0.5		)
Other operating activities, net	(26.5		)	(125.1		)	(29.0		)	—			(180.6		)
Cash provided by (used in) operating activities	21.7			(78.3		)	(6.6		)	—			(63.2		)
Investing activities:
Purchases of property, plant and equipment	(2.7		)	(28.7		)	(3.2		)	—			(34.6		)
Acquisition of a metal service center	—			(10.0		)	—			—			(10.0		)
Net advances to subsidiaries	(112.5		)	—			—			112.5			—
Other investing activities, net	—			3.0			—			—			3.0
Cash used in investing activities	(115.2		)	(35.7		)	(3.2		)	112.5			(41.6		)
Financing activities:
Net short-term debt repayments	—			—			(0.4		)	—			(0.4		)
Proceeds from long-term debt borrowings	221.0			—			—			—			221.0
Principal payments on long-term debt	(120.9		)	(1.3		)	—			—			(122.2		)
Dividends paid	(11.2		)	—			—			—			(11.2		)
Net intercompany borrowings (repayments)	—			116.5			(4.0		)	(112.5		)	—
Other financing activities, net	4.5			(0.7		)	—			—			3.8
Cash provided by (used in) financing activities	93.4			114.5			(4.4		)	(112.5		)	91.0
Effect of exchange rate changes on cash and cash equivalents	—			—			(0.8		)	—			(0.8		)
(Decrease) increase in cash and cash equivalents	(0.1		)	0.5			(15.0		)	—			(14.6		)
Cash and cash equivalents at beginning of year	15.1			10.8			58.7			—			84.6
Cash and cash equivalents at end of period	$	15.0		$	11.3		$	43.7		$	—		$	70.0