Cash Surrender Value of Life Insurance Policies, net	12 Months Ended
Dec. 31, 2022
Cash Surrender Value of Life Insurance Policies, net
Cash Surrender Value of Life Insurance Policies, net	Note 8. Cash Surrender Value of Life Insurance Policies, net The cash surrender value of all life insurance policies held by us, net of loans and related accrued interest, was $42.0 million and $44.9 million as of December 31, 2022 and 2021, respectively. Our wholly owned subsidiary, Earle M. Jorgensen Company (“EMJ”), is the owner and beneficiary of life insurance policies on all former nonunion employees of a predecessor company, including certain current employees of EMJ. These policies, by providing payments to EMJ upon the death of covered individuals, were designed to provide cash to EMJ in order to repurchase shares held by employees in EMJ’s former employee stock ownership plan and shares held individually by employees upon the termination of their employment. Reliance is also the beneficiary of key person life insurance policies held by a rabbi trust for the benefit of participants of the Reliance Supplemental Executive Retirement Plan. Cash surrender value of the life insurance policies increases by a portion of the amount of premiums paid and by investment income earned under the policies and decreases by the amount of cost of insurance charges, investment losses and interest on policy loans, as applicable. Annually, we borrow against the cash surrender value of policies to pay a portion of the premiums and accrued interest owed on loans against those policies. We borrowed $73.1 million, $68.0 million and $60.0 million, respectively, against the cash surrender value of certain policies, which was used to partially pay premiums and accrued interest owed of $93.0 million, $86.3 million and $76.8 million in 2022, 2021 and 2020, respectively. The interest rate on outstanding borrowings under the EMJ life insurance policies is fixed at 11.76% and the portion of the policy cash surrender value that the borrowings relate to earns interest and dividend income at 11.26%. The unborrowed portion of the policy cash surrender value earns income at a rate commensurate with certain risk-free U.S. Treasury bond yields but not less than 4.0%. All other life insurance policies earn investment income or incur losses based on the performance of the underlying investments held by the policies. As of December 31, 2022 and 2021, loans and accrued interest outstanding on EMJ’s life insurance policies were $849.5 million and $789.1 million, respectively. Income earned on our life insurance policies, cost of insurance charges and interest expense on borrowings against cash surrender values are included in the Other expense, net caption in the accompanying consolidated statements of income. See Note 15—“Other Expense (Income), net” for further information on the earnings and expenses of our life insurance policies.

Cash Surrender Value of Life Insurance Policies, net

12 Months Ended

Dec. 31, 2022

Cash Surrender Value of Life Insurance Policies, net

Cash Surrender Value of Life Insurance Policies, net

Note 8. Cash Surrender Value of Life Insurance Policies, net

The cash surrender value of all life insurance policies held by us, net of loans and related accrued interest, was $42.0 million and $44.9 million as of December 31, 2022 and 2021, respectively.

Our wholly owned subsidiary, Earle M. Jorgensen Company (“EMJ”), is the owner and beneficiary of life insurance policies on all former nonunion employees of a predecessor company, including certain current employees of EMJ. These policies, by providing payments to EMJ upon the death of covered individuals, were designed to provide cash to EMJ in order to repurchase shares held by employees in EMJ’s former employee stock ownership plan and shares held individually by employees upon the termination of their employment. Reliance is also the beneficiary of key person life insurance policies held by a rabbi trust for the benefit of participants of the Reliance Supplemental Executive Retirement Plan.

Cash surrender value of the life insurance policies increases by a portion of the amount of premiums paid and by investment income earned under the policies and decreases by the amount of cost of insurance charges, investment losses and interest on policy loans, as applicable.

Annually, we borrow against the cash surrender value of policies to pay a portion of the premiums and accrued interest owed on loans against those policies. We borrowed $73.1 million, $68.0 million and $60.0 million, respectively, against the cash surrender value of certain policies, which was used to partially pay premiums and accrued interest owed of $93.0 million, $86.3 million and $76.8 million in 2022, 2021 and 2020, respectively. The interest rate on outstanding borrowings under the EMJ life insurance policies is fixed at 11.76% and the portion of the policy cash surrender value that the borrowings relate to earns interest and dividend income at 11.26%. The unborrowed portion of the policy cash surrender value earns income at a rate commensurate with certain risk-free U.S. Treasury bond yields but not less than 4.0%. All other life insurance policies earn investment income or incur losses based on the performance of the underlying investments held by the policies.

As of December 31, 2022 and 2021, loans and accrued interest outstanding on EMJ’s life insurance policies were $849.5 million and $789.1 million, respectively.

Income earned on our life insurance policies, cost of insurance charges and interest expense on borrowings against cash surrender values are included in the Other expense, net caption in the accompanying consolidated statements of income. See Note 15—“Other Expense (Income), net” for further information on the earnings and expenses of our life insurance policies.