Segment Information

12 Months Ended

Dec. 31, 2024

Segment Information

Segment Information

Note 19. Segment Information

We have one operating and reportable segment—metals service centers. Reliance derives revenue primarily in the United States and manages its business activities on a consolidated basis.

Reliance is organized as a network of metals service centers under a decentralized operating structure. Reliance provides metal solutions from this network under its operating strategies that include organic growth and acquisitions that enhance the metals service center network’s diversification of products, geographies and customers.

The metals service centers segment primarily operates in the spot market, distributing a full line of over 100,000 metals products, about half of which include value-added processing services to meet customer specifications, from a network of 320 locations.

The following is a summary of our sales by product and service (gross sales as a % of total sales) for each of the three years ended December 31:

	2024		2023		2022
Carbon steel	53	%	53	%	54	%
Aluminum	16		16		15
Stainless steel	14		15		17
Alloy	5		5		4
Toll processing and logistics	4		4		3
Copper and brass	2		2		2
Miscellaneous	6		5		5
Total	100	%	100	%	100	%

The accounting policies of the metals service center segment are the same as those described in Note 1—“Summary of Significant Accounting Policies.”

The Company's chief operating decision maker (“CODM”) is the chief executive officer.

The CODM assesses performance for the metals service center segment and makes capital allocation decisions, which generally includes both growth and shareholder returns, using net income. Our organic growth activities relate to capital expenditures and our inorganic growth activities are comprised of acquisitions. Our shareholder returns include share repurchases and quarterly dividends which we have paid for 65 consecutive years.

The measure of segment assets is reported on the accompanying consolidated balance sheet as total assets.

The measure of segment profit and loss is net income reported on the accompanying consolidated income statements.

Information about our segment revenue, profit or loss, significant expenses and other quantitative profit or loss information is presented below:

	Metals Service Centers Segment
	Year Ended December 31,
	2024		2023		2022
	(in millions)
Revenues	$	13,835.0	$	14,805.9	$	17,025.0
Less:
Cost of sales (exclusive of depreciation and amortization shown below)		9,728.4		10,258.6		11,773.7
Compensation expense		1,614.8		1,557.8		1,537.3
Other segment items(a)		1,031.2		963.3		981.1
Depreciation and amortization expense		268.7		245.4		240.2
Impairment		11.7		—		—
Interest expense		40.3		40.1		62.3
Income tax provision		261.9		400.6		586.2
Segment net income		878.0		1,340.1		1,844.2
Reconciliation
Adjustments and reconciling items		—		—		—
Consolidated net income	$	878.0	$	1,340.1	$	1,844.2
Other Segment Disclosures:
Purchases of property, plant and equipment	$	430.6	$	468.8	$	341.8

(a) Other segment items included in Segment net income mainly includes warehousing and delivery related expenses, which include among others, 3^rd party freight, gas and oil, utilities & rent, plant supplies, and repairs and maintenance.

The following table summarizes consolidated financial information of our U.S. and foreign operations:

	United States		Foreign Countries		Total
	(in millions)
Year Ended December 31, 2024:
Net sales	$	12,933.9	$	901.1	$	13,835.0
Long-lived assets		5,708.9		417.4		6,126.3
Year Ended December 31, 2023:
Net sales		13,786.8		1,019.1		14,805.9
Long-lived assets		5,288.4		420.1		5,708.5
Year Ended December 31, 2022:
Net sales		15,978.6		1,046.4		17,025.0
Long-lived assets		5,051.9		391.4		5,443.3