Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 30, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'RELIANCE STEEL & ALUMINUM CO | ' |
Entity Central Index Key | '0000861884 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 77,712,803 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $113.60 | $83.60 |
Accounts receivable, less allowance for doubtful accounts of $20.0 at March 31, 2014 and $18.9 at December 31, 2013 | 1,160.10 | 983.5 |
Inventories | 1,656.20 | 1,540 |
Prepaid expenses and other current assets | 56.3 | 59 |
Income taxes receivable | ' | 33.9 |
Deferred income taxes | 38.9 | 38.9 |
Total current assets | 3,025.10 | 2,738.90 |
Property, plant and equipment: | ' | ' |
Land | 191.7 | 191.7 |
Buildings | 945.3 | 934.6 |
Machinery and equipment | 1,363.80 | 1,350.30 |
Accumulated depreciation | -906.8 | -872.7 |
Total property, plant and equipment | 1,594 | 1,603.90 |
Goodwill | 1,690.30 | 1,691.60 |
Intangible assets, net | 1,196.70 | 1,213.80 |
Cash surrender value of life insurance policies, net | 42.9 | 45.4 |
Investments in unconsolidated entities | 14.7 | 14.1 |
Other assets | 33 | 33.3 |
Total assets | 7,596.70 | 7,341 |
Current liabilities: | ' | ' |
Accounts payable | 457.3 | 280.3 |
Accrued expenses | 107.8 | 91.1 |
Accrued compensation and retirement costs | 87.9 | 119.5 |
Accrued insurance costs | 48 | 46 |
Current maturities of long-term debt and short-term borrowings | 36.8 | 36.5 |
Income taxes payable | 8.4 | ' |
Total current liabilities | 746.2 | 573.4 |
Long-term debt | 2,091 | 2,072.50 |
Long-term retirement costs | 83.8 | 84 |
Other long-term liabilities | 36.1 | 35.9 |
Deferred income taxes | 689.6 | 690.8 |
Commitments and contingencies | ' | ' |
Equity: | ' | ' |
Preferred stock, no par value: Authorized shares - 5,000,000 None issued or outstanding | ' | ' |
Common stock, no par value: Authorized shares - 200,000,000 Issued and outstanding shares - 77,666,153 at March 31, 2014 and 77,492,017 at December 31, 2013, stated capital | 831.6 | 818.3 |
Retained earnings | 3,123.40 | 3,063 |
Accumulated other comprehensive loss | -15.5 | -6.7 |
Total Reliance shareholders' equity | 3,939.50 | 3,874.60 |
Noncontrolling interests | 10.5 | 9.8 |
Total equity | 3,950 | 3,884.40 |
Total liabilities and equity | $7,596.70 | $7,341 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ' | ' |
Accounts receivable, allowance for doubtful accounts (in dollars) | $20 | $18.90 |
Preferred stock, par value (in dollars per share) | ' | ' |
Preferred stock, Authorized shares | 5,000,000 | 5,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value (in dollars per share) | ' | ' |
Common stock, Authorized shares | 200,000,000 | 200,000,000 |
Common stock, Issued shares | 77,666,153 | 77,492,017 |
Common stock, outstanding shares | 77,666,153 | 77,492,017 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CONSOLIDATED STATEMENTS OF INCOME | ' | ' |
Net sales | $2,553 | $2,025.30 |
Costs and expenses: | ' | ' |
Cost of sales (exclusive of depreciation and amortization shown below) | 1,905.80 | 1,496.50 |
Warehouse, delivery, selling, general and administrative | 441 | 357.7 |
Depreciation and amortization | 51.9 | 41.1 |
Total costs and expenses | 2,398.70 | 1,895.30 |
Operating income | 154.3 | 130 |
Other income (expense): | ' | ' |
Interest | -20.2 | -13.1 |
Other income, net | ' | 2.9 |
Income before income taxes | 134.1 | 119.8 |
Income tax provision | 46.2 | 35.3 |
Net income | 87.9 | 84.5 |
Less: Net income attributable to noncontrolling interests | 0.7 | 0.8 |
Net income attributable to Reliance | $87.20 | $83.70 |
Earnings per share: | ' | ' |
Diluted earnings per common share attributable to Reliance shareholders (in dollars per share) | $1.11 | $1.09 |
Basic earnings per common share attributable to Reliance shareholders (in dollars per share) | $1.13 | $1.10 |
Cash dividends per share (in dollars per share) | $0.35 | $0.30 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' |
Net income | $87.90 | $84.50 |
Other comprehensive (loss) income: | ' | ' |
Foreign currency translation loss | -8.9 | -10.1 |
Unrealized gain on investments, net of tax | 0.1 | 0.2 |
Total other comprehensive loss | -8.8 | -9.9 |
Comprehensive income | 79.1 | 74.6 |
Less: comprehensive income attributable to noncontrolling interests | 0.7 | 0.8 |
Comprehensive income attributable to Reliance | $78.40 | $73.80 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Operating activities: | ' | ' |
Net income | $87.90 | $84.50 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization expense | 51.9 | 41.1 |
Deferred income tax (benefit) provision | -0.7 | 1.6 |
(Gain) loss on sales of property, plant and equipment | -0.5 | 0.2 |
Equity in earnings of unconsolidated entities | -0.6 | -0.3 |
Dividend received from unconsolidated entity | ' | 0.3 |
Share-based compensation expense | 4.9 | 6.7 |
Other | 2.1 | -1.6 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | -177.6 | -134.8 |
Inventories | -114.6 | -48.2 |
Prepaid expenses and other assets | 43.9 | 31.3 |
Accounts payable and other liabilities | 172.1 | 91.4 |
Net cash provided by operating activities | 68.8 | 72.2 |
Investing activities: | ' | ' |
Purchases of property, plant and equipment | -28.9 | -26.8 |
Other | -9.1 | 7.3 |
Net cash used in investing activities | -38 | -19.5 |
Financing activities: | ' | ' |
Net short-term debt borrowings | 0.3 | 3.1 |
Proceeds from long-term debt borrowings | 160 | 50 |
Principal payments on long-term debt | -141.7 | -110 |
Payment to noncontrolling interest holder | ' | -0.7 |
Dividends paid | -27.1 | -22.9 |
Excess benefit (tax deficit) from share-based compensation | 0.3 | -0.8 |
Exercise of stock options | 8.4 | 31.6 |
Net cash provided by (used in) financing activities | 0.2 | -49.7 |
Effect of exchange rate changes on cash | -1 | -0.5 |
Increase in cash and cash equivalents | 30 | 2.5 |
Cash and cash equivalents at beginning of year | 83.6 | 97.6 |
Cash and cash equivalents at end of period | 113.6 | 100.1 |
Supplemental cash flow information: | ' | ' |
Interest paid during the period | 5.2 | 4.4 |
Income taxes paid during the period, net | $5.30 | $9.80 |
Basis_of_Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2014 | |
Basis of Presentation | ' |
Basis of Presentation | ' |
1. Basis of Presentation | |
Principles of Consolidation | |
The accompanying unaudited consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions of Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments necessary for a fair presentation with respect to the interim financial statements, have been included. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results for the full year ending December 31, 2014. For further information, refer to the consolidated financial statements and footnotes thereto for the year ended December 31, 2013, included in Reliance Steel & Aluminum Co.’s (“Reliance”, the “Company”, “we”, “our” or “us”) Annual Report on Form 10-K. | |
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts and the disclosure of contingent amounts in our consolidated financial statements and the accompanying notes. Actual results could differ from those estimates. | |
Our consolidated financial statements include the assets, liabilities and operating results of majority-owned subsidiaries. The ownership of the other interest holders of consolidated subsidiaries is reflected as noncontrolling interests. Our investments in unconsolidated subsidiaries are recorded under the equity method of accounting. All significant intercompany accounts and transactions have been eliminated. | |
Impact_of_Recently_Issued_Acco
Impact of Recently Issued Accounting Guidance | 3 Months Ended |
Mar. 31, 2014 | |
Impact of Recently Issued Accounting Guidance | ' |
Impact of Recently Issued Accounting Guidance | ' |
2. Impact of Recently Issued Accounting Guidance | |
Impact of Recently Issued Accounting Standards—Adopted | |
Comprehensive Income Reporting and Disclosures—On January 1, 2013, we adopted changes issued by the Financial Accounting Standards Board (“FASB”), which require additional disclosures for the reclassification of significant amounts from accumulated other comprehensive income (loss) to net income. This guidance requires that the effect of certain significant amounts be presented either on the face of the consolidated statements of comprehensive income or in a single note. For other amounts, we are required to cross-reference disclosures that provide additional detail about those amounts. The adoption of these changes did not have a material impact on our consolidated financial statements. | |
Acquisitions
Acquisitions | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Acquisitions | ' | ||||
Acquisitions | ' | ||||
3. Acquisitions | |||||
2013 Acquisitions | |||||
On November 1, 2013, through our wholly-owned subsidiary American Metals Corporation, we acquired Haskins Steel Co., Inc. (“Haskins Steel”), located in Spokane, Washington. Founded in 1955, Haskins Steel processes and distributes primarily carbon steel and aluminum products of various shapes and sizes to a diverse customer base in the Pacific Northwest. Their in-house processing capabilities include shearing, sawing, burning and forming. Net sales of Haskins Steel for the three months ended March 31, 2014 were $8.0 million. | |||||
On April 30, 2013, we acquired Travel Main Holdings, LLC (“Travel Main”), a real estate holding company with a portfolio of 18 real estate properties, all of which are leased by certain of our subsidiaries. The transaction value of $78.9 million included the assumption of $43.8 million of indebtedness. The cash portion of the purchase price was funded with borrowings on our revolving credit facility. | |||||
On April 12, 2013, we acquired Metals USA Holdings Corp. (“Metals USA”). Metals USA is one of the largest metals service center businesses in the United States and a leading provider of value-added processed aluminum, brass, copper, carbon steel, stainless steel, manufactured metal components and inventory management services. Metals USA sells its products and services to a diverse customer base and broad range of end markets, including the aerospace, auto, defense, heavy equipment, marine transportation, commercial construction, office furniture manufacturing, energy and oilfield service industries, among several others. This acquisition added a total of 44 service centers strategically located throughout the United States to our existing operations and complements our existing customer base, product mix and geographic footprint. Net sales of Metals USA for the three months ended March 31, 2014 were $454.5 million. | |||||
The purchase price for Metals USA of $766.8 million along with assumed debt of $486.1 million represented a total transaction value of approximately $1.25 billion. We funded the transaction and refinanced all but $12.3 million of Metals USA’s debt with proceeds from our $500.0 million term loan, which we entered into in April 2013, and our April 2013 $500.0 million senior notes offering, with the balance drawn on our existing revolving credit facility (see Note 7). During the three months ended March 31, 2013 we incurred approximately $3.1 million in transaction related costs, which are included in warehouse, delivery, selling, general and administration expenses. | |||||
The allocation of the total purchase price of Metals USA to the fair values of assets acquired and liabilities assumed is as follows: | |||||
(in millions) | |||||
Cash | $ | 3.2 | |||
Accounts receivable | 206 | ||||
Inventories | 379.5 | ||||
Property, plant and equipment | 242.6 | ||||
Goodwill | 382.7 | ||||
Intangible assets subject to amortization | 137.6 | ||||
Intangible assets not subject to amortization | 203 | ||||
Other current and long-term assets | 9.1 | ||||
Total assets acquired | 1,563.70 | ||||
Current and long-term debt | 486.1 | ||||
Deferred taxes | 184.4 | ||||
Other current and long-term liabilities | 126.4 | ||||
Total liabilities assumed | 796.9 | ||||
Net assets acquired | $ | 766.8 | |||
Purchase price allocations | |||||
The acquisitions discussed in this note have been accounted for under the acquisition method of accounting and, accordingly, the respective purchase price has been allocated to the assets acquired and liabilities assumed based on their estimated fair values at the date of each acquisition. The accompanying consolidated statements of income include the revenues and expenses of each acquisition since its respective acquisition date. The consolidated balance sheets reflect the allocation of each acquisition’s purchase price as of March 31, 2014, as applicable. The purchase price allocation for the Haskins Steel acquisition is preliminary and is pending the completion of pre-acquisition period income tax returns. The measurement periods for purchase price allocations do not exceed 12 months from the acquisition date. | |||||
Pro forma financial information | |||||
The following pro forma summary financial results present the consolidated results of operations as if the acquisition of Metals USA had occurred as of January 1, 2013, after the effect of certain adjustments, including interest expense on the acquisition debt, non-recurring acquisition related costs, and amortization of certain identifiable intangible assets. The pro forma summary financial results reflect Metals USA’s historical method for inventory valuation, which was the first-in, first-out (FIFO) method for the majority of its inventories. Metals USA adopted the last-in, first-out (LIFO) method of inventory valuation upon acquisition. The pro forma summary financial results for the three months ended March 31, 2013 excluded approximately $5.2 million of acquisition and related costs. | |||||
The pro forma results have been presented for comparative purposes only and are not indicative of what would have occurred had the Metals USA acquisition been made as of January 1, 2013, or of any potential results which may occur in the future. | |||||
Three Months Ended | |||||
March 31, 2013 | |||||
(in millions, except | |||||
per share amounts) | |||||
Pro forma: | |||||
Net sales | $ | 2,484.40 | |||
Net income attributable to Reliance | $ | 88.4 | |||
Diluted earnings per common share | |||||
attributable to Reliance shareholders | $ | 1.15 | |||
Basic earnings per common share | |||||
attributable to Reliance shareholders | $ | 1.16 |
Goodwill
Goodwill | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Goodwill. | ' | ||||
Goodwill | ' | ||||
4. Goodwill | |||||
The change in the carrying amount of goodwill is as follows: | |||||
(in millions) | |||||
Balance at December 31, 2013 | $ | 1,691.60 | |||
Purchase price allocation adjustment | 1.2 | ||||
Effect of foreign currency translation | (2.5 | ) | |||
Balance at March 31, 2014 | $ | 1,690.30 | |||
We had no accumulated impairment losses related to goodwill as of March 31, 2014. |
Intangible_Assets_net
Intangible Assets, net | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Intangible Assets, net | ' | |||||||||||||
Intangible Assets, net | ' | |||||||||||||
5. Intangible Assets, net | ||||||||||||||
Intangible assets, net consisted of the following: | ||||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||
Gross | Gross | |||||||||||||
Carrying | Accumulated | Carrying | Accumulated | |||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||
(in millions) | ||||||||||||||
Intangible assets subject to amortization: | ||||||||||||||
Covenants not to compete | $ | 8 | $ | (7.3 | ) | $ | 8 | $ | (7.3 | ) | ||||
Loan fees | 41.5 | (24.9 | ) | 41.5 | (24.1 | ) | ||||||||
Customer lists/relationships | 652 | (212.6 | ) | 654.3 | (200.6 | ) | ||||||||
Software – internal use | 8.1 | (6.5 | ) | 8.1 | (6.3 | ) | ||||||||
Other | 7.4 | (3.2 | ) | 7.4 | (2.7 | ) | ||||||||
717 | (254.5 | ) | 719.3 | (241.0 | ) | |||||||||
Intangible assets not subject to amortization: | ||||||||||||||
Trade names | 734.2 | — | 735.5 | — | ||||||||||
$ | 1,451.20 | $ | (254.5 | ) | $ | 1,454.80 | $ | (241.0 | ) | |||||
We recognized amortization expense for intangible assets of $14.1 million and $11.3 million for the three months ended March 31, 2014 and 2013, respectively. Other changes in intangible assets, net during the three months ended March 31, 2014 are due to foreign currency translation losses of $3.0 million. | ||||||||||||||
The following is a summary of estimated aggregated amortization expense for the remaining nine months of 2014 and each of the succeeding five years: | ||||||||||||||
(in millions) | ||||||||||||||
2014 | $ | 41.6 | ||||||||||||
2015 | 53.6 | |||||||||||||
2016 | 51.9 | |||||||||||||
2017 | 47.4 | |||||||||||||
2018 | 41.2 | |||||||||||||
2019 | 40.5 | |||||||||||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2014 | |
Income Taxes | ' |
Income Taxes | ' |
6. Income Taxes | |
Our effective income tax rates for the three-month periods ended March 31, 2014 and 2013 were 34.5% and 29.5%, respectively. Permanent items that lowered our effective income tax rates from the federal statutory rate were not materially different in amounts during both years and relate mainly to company-owned life insurance policies, domestic production activities deductions and foreign income levels that are taxed at rates lower than the U.S. statutory rate of 35%. Additionally, our 2013 three-month period effective income tax rate was favorably impacted from the settlement of certain tax matters. | |
Debt
Debt | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt | ' | |||||||
Debt | ' | |||||||
7. Debt | ||||||||
Debt consists of the following: | ||||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Unsecured revolving credit facility due April 4, 2018 | $ | 505 | $ | 480 | ||||
Senior unsecured term loan due from June 30, 2014 to April 4, 2018 | 461.3 | 467.5 | ||||||
Senior unsecured notes due November 15, 2016 | 350 | 350 | ||||||
Senior unsecured notes due April 15, 2023 | 500 | 500 | ||||||
Senior unsecured notes due November 15, 2036 | 250 | 250 | ||||||
Other notes and revolving credit facilities | 64.7 | 64.8 | ||||||
Total | 2,131.00 | 2,112.30 | ||||||
Less: unamortized discount | (3.2 | ) | (3.3 | ) | ||||
Less: amounts due within one year and short-term borrowings | (36.8 | ) | (36.5 | ) | ||||
Total long-term debt | $ | 2,091.00 | $ | 2,072.50 | ||||
Unsecured Revolving Credit Facility | ||||||||
On April 4, 2013, we entered into a syndicated Third Amended and Restated Credit Agreement with 26 banks as lenders (“Credit Agreement”). The Credit Agreement amended and restated our existing $1.5 billion unsecured revolving credit facility and provided for a $500.0 million term loan and an option to increase the revolving credit facility for up to $500.0 million at our request, subject to approval of the lenders and certain other conditions. The term loan due April 4, 2018 amortizes in quarterly installments, with an annual amortization of 5% through March 2015 and 10% thereafter until March 2018, with the balance to be paid at maturity. Interest on borrowings from the amended and restated revolving credit facility during the three-month period ending March 31, 2014 was at variable rates based on LIBOR plus 1.25% or the bank prime rate plus 0.25% and included a commitment fee at an annual rate of 0.20% on the unused portion. The applicable margins over LIBOR rate and base rate borrowings, along with commitment fees, are subject to adjustment every quarter based on our leverage ratio, as defined. | ||||||||
Weighted average rates on borrowings outstanding on the revolving credit facility were 1.40% and 1.41% as of March 31, 2014 and December 31, 2013, respectively. As of March 31, 2014, we had $59.2 million of letters of credit outstanding under the revolving credit facility with availability to issue an additional $190.8 million of letters of credit. | ||||||||
Senior Unsecured Notes — Publicly Traded | ||||||||
On November 20, 2006 we entered into an indenture (the “2006 Indenture”), for the issuance of $600.0 million of unsecured debt securities. The total debt issued was comprised of two tranches, (a) $350.0 million aggregate principal amount of senior unsecured notes bearing interest at the rate of 6.20% per annum, maturing on November 15, 2016 and (b) $250.0 million aggregate principal amount of senior unsecured notes bearing interest at the rate of 6.85% per annum, maturing on November 15, 2036. | ||||||||
On April 12, 2013, we entered into an indenture (the “2013 Indenture” and, together with the 2006 Indenture, the “Indentures”), for the issuance of $500.0 million aggregate principal amount of senior unsecured notes at the rate of 4.50% per annum, maturing on April 15, 2023. The net proceeds from the issuance were used to partially fund the acquisition of Metals USA. | ||||||||
Under the Indentures, the notes are senior unsecured obligations and rank equally in right of payment with all of our existing and future unsecured and unsubordinated obligations. The notes are guaranteed by our named 100%-owned domestic subsidiaries that guarantee our revolving credit facility. The senior unsecured notes include provisions that require us to make an offer to repurchase the notes at a price equal to 101% of their principal amount plus accrued and unpaid interest in the event of a change in control and a downgrade of our credit rating. | ||||||||
Other Notes and Revolving Credit Facilities | ||||||||
Other revolving credit facilities with a combined credit limit of approximately $21.6 million are in place for operations in Asia and Europe with combined outstanding balances of $9.8 million and $9.5 million as of March 31, 2014 and December 31, 2013, respectively. | ||||||||
Pursuant to our acquisition of Metals USA, we assumed industrial revenue bonds with combined outstanding balances of $11.9 million as of March 31, 2014 that have maturities through 2027. Additionally, we assumed mortgage obligations pursuant to our acquisition of Travel Main, which have outstanding balances of $42.7 million as of March 31, 2014. The mortgages, which are secured by the underlying properties, have a fixed interest rate of 6.40% and scheduled amortization payments with a lump sum payment of $39.2 million due October 2016. | ||||||||
Covenants | ||||||||
The Credit Agreement requires us to maintain an interest coverage ratio and a maximum leverage ratio, among other things. | ||||||||
Additionally, our named 100%-owned domestic subsidiaries, which constitute the substantial majority of our subsidiaries, guarantee the borrowings under the Credit Agreement and the Indentures. The subsidiary guarantors, together with Reliance, are required collectively to account for at least 80% of our consolidated EBITDA and 80% of consolidated tangible assets. | ||||||||
We were in compliance with all debt covenants as of March 31, 2014. |
Equity
Equity | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Equity | ' | |||||||||||||
Equity | ' | |||||||||||||
8. Equity | ||||||||||||||
Common Stock | ||||||||||||||
During the three months ended March 31, 2014, we issued 174,136 shares of common stock in connection with the exercise of employee stock options for total proceeds of approximately $8.4 million. | ||||||||||||||
Dividends | ||||||||||||||
On April 22, 2014, our Board of Directors declared the 2014 second quarter cash dividend of $0.35 per share. The dividend is payable on June 20, 2014 to shareholders of record as of May 30, 2014. | ||||||||||||||
During the three months ended March 31, 2014 we declared and paid a quarterly dividend of $0.35 per share, or $27.1 million in total, compared to a quarterly dividend of $0.30 per share, or $22.9 million in total, for the same period in 2013. | ||||||||||||||
Share-Based Compensation | ||||||||||||||
On March 25, 2014, we granted a total of 349,380 restricted stock units (“RSUs”) to key employees pursuant to the Amended and Restated Stock Option and Restricted Stock Plan. Each RSU consists of the right to receive one share of our common stock and dividend equivalent rights, subject to forfeiture, equal to the accrued cash or stock dividends where the record date for such dividends is after the grant date but before the shares vest. Each 2014 RSU granted has a service condition and cliff vests at December 31, 2016, if the recipient is an employee on that date. In addition to the service criteria, 136,162 of the RSUs granted in 2014 also have performance goals and vest only upon the satisfaction of the service and performance criteria. The fair value of the 2014 RSUs granted was $71.15, the closing price of our common stock on the day before the grant. | ||||||||||||||
Share Repurchase Program | ||||||||||||||
As of March 31, 2014, 7,883,033 shares of common stock remain authorized for repurchase under our stock repurchase program. No shares were repurchased in 2014 or 2013. Repurchased shares are redeemed and treated as authorized but unissued shares. | ||||||||||||||
Accumulated Other Comprehensive Loss | ||||||||||||||
Accumulated other comprehensive loss included the following: | ||||||||||||||
Unrealized | Pension and | Accumulated | ||||||||||||
Foreign Currency | Gain on | Postretirement | Other | |||||||||||
Translation | Investments, | Benefit Adjustments, | Comprehensive | |||||||||||
Gain (Loss) | Net of Tax | Net of Tax | Loss | |||||||||||
(in millions) | ||||||||||||||
Balance as of December 31, 2013 | $ | 3.2 | $ | 0.2 | $ | (10.1 | ) | $ | (6.7 | ) | ||||
Current-period change | (8.9 | ) | 0.1 | — | (8.8 | ) | ||||||||
Balance as of March 31, 2014 | $ | (5.7 | ) | $ | 0.3 | $ | (10.1 | ) | $ | (15.5 | ) | |||
Foreign currency translation adjustments are not generally adjusted for income taxes as they relate to indefinite investments in foreign subsidiaries. Unrealized gain on investments and pension and postretirement benefit adjustments are net of taxes of $0.1 million and $6.9 million, respectively, as of March 31, 2014 and December 31, 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2014 | |
Commitments and Contingencies. | ' |
Commitments and Contingencies | ' |
9. Commitments and Contingencies | |
Environmental Contingencies | |
We are currently involved with certain environmental remediation projects related to activities at former manufacturing operations of our wholly owned subsidiary Earle M. Jorgensen Company (“EMJ”) that were sold many years prior to our acquisition of EMJ in 2006. Although the potential cleanup costs could be significant, EMJ had insurance policies in place at the time they owned the manufacturing operations that are expected to cover the majority of the related costs. We do not expect that these obligations will have a material adverse impact on our financial position, results of operations or cash flows. | |
Legal Matters | |
On April 29, 2014, a judgment was entered against the Company and its subsidiary, Chapel Steel Corp. (“Chapel”), along with four other co-defendants, in an antitrust lawsuit filed in the United States District Court for the Southern District of Texas. As disclosed in the Company’s Annual Report on Form 10-K for the period ended December 31, 2013 filed with the Securities and Exchange Commission, Reliance has been involved in this legal proceeding brought by two former employees who left the Company to start their own business and claim that Reliance and the co-defendants engaged in anticompetitive activities. The judgment, entered against all six defendants jointly and severally, awarded the plaintiff $156 million in damages, representing a trebling under federal antitrust laws of the jury verdict of $52 million in damages. Reliance and Chapel disagree with the judgment and damages award and intend to pursue all available remedies, including taking the matter up on appeal. Despite the judgment, Reliance currently believes a reasonable range of its potential loss in this matter is between $10 million and $39 million. The low end of the estimated range of potential loss is based on our current belief that we may be successful in our efforts, including any appeal or other proceeding, in reducing the judgment and/or settling this matter. The high end of the estimated range of potential loss represents our estimate of Reliance’s maximum share of the judgment should we be unsuccessful in reducing the judgment or settling the matter at a lower amount. We have determined that no amount within this range is a better estimate than any other amount and, therefore, have accrued to the minimum amount of the range. Our estimated range of potential loss is based on our opinion regarding the current status and likelihood of final resolution through appeal or other proceedings, and could change as a result of developments in the appeal or other proceedings or if the likelihood of settlement changes. The ultimate financial obligation resulting from resolution of this matter could vary, perhaps materially, from our estimated range of potential loss. | |
From time to time, we are named as a defendant in legal actions. Generally, these actions arise out of our normal course of business. Except as disclosed above, we are not a party to any pending legal proceedings other than routine litigation incidental to the business. We expect that these other matters will be resolved without a material adverse effect on our results of operations or financial condition. We maintain liability insurance against risks arising out of our ordinary course of business. | |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share | ' | |||||||
Earnings Per Share | ' | |||||||
10. Earnings Per Share | ||||||||
Basic earnings per share exclude any dilutive effects of options, restricted stock, RSUs, warrants and convertible securities. Diluted earnings per share are calculated including the dilutive effects of options, restricted stock, RSUs, warrants and convertible securities, if any. | ||||||||
The following table sets forth the computation of basic and diluted earnings per share: | ||||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
(in millions, except share and per share | ||||||||
amounts) | ||||||||
Numerator: | ||||||||
Net income attributable to Reliance | $ | 87.2 | $ | 83.7 | ||||
Denominator: | ||||||||
Denominator for basic earnings per share: | ||||||||
Weighted average shares | 77,507,406 | 76,297,108 | ||||||
Effect of dilutive securities: | ||||||||
Stock options, restricted stock, and RSUs | 850,426 | 783,595 | ||||||
Denominator for dilutive earnings per share: | ||||||||
Adjusted weighted average shares and assumed conversions | 78,357,832 | 77,080,703 | ||||||
Net income per share attributable to Reliance shareholders – diluted | $ | 1.11 | $ | 1.09 | ||||
Net income per share attributable to Reliance shareholders – basic | $ | 1.13 | $ | 1.1 | ||||
The computations of earnings per share for the three months ended March 31, 2014 and 2013 do not include 17,625 and 483,680 weighted average shares, respectively, for stock options and RSU’s, because their inclusion would have been anti-dilutive. |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Statements | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Condensed Consolidating Financial Statements | ' | ||||||||||||||||
Condensed Consolidating Financial Statements | ' | ||||||||||||||||
11. Condensed Consolidating Financial Statements | |||||||||||||||||
In November 2006 and April 2013, we issued senior unsecured notes in the aggregate principal amount of $1.1 billion, at fixed interest rates that are guaranteed by our named 100%-owned domestic subsidiaries that also guarantee borrowings under the Credit Agreement. The accompanying consolidating financial information has been prepared and presented pursuant to Rule 3-10 of SEC Regulation S-X “Financial Statements of Guarantors and Issuers of Guaranteed Securities Registered or Being Registered.” The guarantees are full and unconditional and joint and several obligations of each of the guarantor subsidiaries. There are no significant restrictions on our ability to obtain funds from any of the guarantor subsidiaries by dividends or loans. The supplemental consolidating financial information has been presented in lieu of separate financial statements of the guarantors as such separate financial statements are not considered meaningful. | |||||||||||||||||
Condensed Unaudited Consolidating Balance Sheet | |||||||||||||||||
As of March 31, 2014 | |||||||||||||||||
(in millions) | |||||||||||||||||
Non- | |||||||||||||||||
Guarantor | Guarantor | Consolidating | |||||||||||||||
Parent | Subsidiaries | Subsidiaries | Adjustments | Consolidated | |||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 46.8 | $ | (9.5 | ) | $ | 76.3 | $ | — | $ | 113.6 | ||||||
Accounts receivable, less allowance for doubtful accounts | 79 | 976 | 105.1 | — | 1,160.10 | ||||||||||||
Inventories | 60.5 | 1,449.80 | 145.9 | — | 1,656.20 | ||||||||||||
Income taxes receivable | 49.9 | — | — | (49.9 | ) | — | |||||||||||
Intercompany receivables | 0.4 | 20.7 | 1.5 | (22.6 | ) | — | |||||||||||
Other current assets | 109.2 | 51.9 | 10.6 | (76.5 | ) | 95.2 | |||||||||||
Total current assets | 345.8 | 2,488.90 | 339.4 | (149.0 | ) | 3,025.10 | |||||||||||
Investments in subsidiaries | 4,555.00 | 211.5 | — | (4,766.5 | ) | — | |||||||||||
Property, plant and equipment, net | 100.6 | 1,291.10 | 202.3 | — | 1,594.00 | ||||||||||||
Goodwill | 23.8 | 1,556.80 | 109.7 | — | 1,690.30 | ||||||||||||
Intangible assets, net | 34.4 | 1,048.20 | 114.1 | — | 1,196.70 | ||||||||||||
Intercompany receivables | 1,376.60 | 112.4 | 10.1 | (1,499.1 | ) | — | |||||||||||
Other assets | 20.9 | 64.4 | 5.3 | — | 90.6 | ||||||||||||
Total assets | $ | 6,457.10 | $ | 6,773.30 | $ | 780.9 | $ | (6,414.6 | ) | $ | 7,596.70 | ||||||
Liabilities & Equity | |||||||||||||||||
Accounts payable | $ | 43.3 | $ | 403.1 | $ | 33.5 | $ | (22.6 | ) | $ | 457.3 | ||||||
Accrued compensation and retirement costs | 9.5 | 69.5 | 8.9 | — | 87.9 | ||||||||||||
Other current liabilities | 79.5 | 91.5 | 44.4 | (51.2 | ) | 164.2 | |||||||||||
Deferred income taxes | — | 75.2 | — | (75.2 | ) | — | |||||||||||
Current maturities of long-term debt and short-term borrowings | 25.3 | — | 11.5 | — | 36.8 | ||||||||||||
Total current liabilities | 157.6 | 639.3 | 98.3 | (149.0 | ) | 746.2 | |||||||||||
Long-term debt | 2,038.10 | 5.7 | 47.2 | — | 2,091.00 | ||||||||||||
Intercompany borrowings | — | 1,321.70 | 177.4 | (1,499.1 | ) | — | |||||||||||
Other long-term liabilities | 321.9 | 446.6 | 41 | — | 809.5 | ||||||||||||
Total Reliance shareholders’ equity | 3,939.50 | 4,352.90 | 413.6 | (4,766.5 | ) | 3,939.50 | |||||||||||
Noncontrolling interests | — | 7.1 | 3.4 | — | 10.5 | ||||||||||||
Total equity | 3,939.50 | 4,360.00 | 417 | (4,766.5 | ) | 3,950.00 | |||||||||||
Total liabilities and equity | $ | 6,457.10 | $ | 6,773.30 | $ | 780.9 | $ | (6,414.6 | ) | $ | 7,596.70 | ||||||
Condensed Unaudited Consolidating Balance Sheet | |||||||||||||||||
As of December 31, 2013 | |||||||||||||||||
(in millions) | |||||||||||||||||
Non- | |||||||||||||||||
Guarantor | Guarantor | Consolidating | |||||||||||||||
Parent | Subsidiaries | Subsidiaries | Adjustments | Consolidated | |||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 19.7 | $ | (0.8 | ) | $ | 64.7 | $ | — | $ | 83.6 | ||||||
Accounts receivable, less allowance for doubtful accounts | 64.1 | 820.3 | 99.1 | — | 983.5 | ||||||||||||
Inventories | 52.6 | 1,344.80 | 142.6 | — | 1,540.00 | ||||||||||||
Income taxes receivable | 34.4 | — | — | (0.5 | ) | 33.9 | |||||||||||
Intercompany receivables | 0.3 | 350.6 | 2.2 | (353.1 | ) | — | |||||||||||
Other current assets | 124.8 | 40.8 | 8.9 | (76.6 | ) | 97.9 | |||||||||||
Total current assets | 295.9 | 2,555.70 | 317.5 | (430.2 | ) | 2,738.90 | |||||||||||
Investments in subsidiaries | 4,647.70 | 312.4 | — | (4,960.1 | ) | — | |||||||||||
Property, plant and equipment, net | 100.8 | 1,298.70 | 204.4 | — | 1,603.90 | ||||||||||||
Goodwill | 23.8 | 1,555.70 | 112.1 | — | 1,691.60 | ||||||||||||
Intangible assets, net | 17.4 | 1,077.80 | 118.6 | — | 1,213.80 | ||||||||||||
Intercompany receivables | 1,219.40 | 22.4 | 394.3 | (1,636.1 | ) | — | |||||||||||
Other assets | 20.8 | 66.6 | 5.4 | — | 92.8 | ||||||||||||
Total assets | $ | 6,325.80 | $ | 6,889.30 | $ | 1,152.30 | $ | (7,026.4 | ) | $ | 7,341.00 | ||||||
Liabilities & Equity | |||||||||||||||||
Accounts payable | $ | 29.1 | $ | 185.8 | $ | 418.5 | $ | (353.1 | ) | $ | 280.3 | ||||||
Accrued compensation and retirement costs | 21.1 | 85.9 | 12.5 | — | 119.5 | ||||||||||||
Other current liabilities | 53.5 | 63.1 | 22.4 | (1.9 | ) | 137.1 | |||||||||||
Deferred income taxes | — | 75.2 | — | (75.2 | ) | — | |||||||||||
Current maturities of long-term debt and short-term borrowings | 25.3 | — | 11.2 | — | 36.5 | ||||||||||||
Total current liabilities | 129 | 410 | 464.6 | (430.2 | ) | 573.4 | |||||||||||
Long-term debt | 2,019.20 | 5.7 | 47.6 | — | 2,072.50 | ||||||||||||
Intercompany borrowings | — | 1,550.60 | 85.5 | (1,636.1 | ) | — | |||||||||||
Other long-term liabilities | 303 | 466.5 | 41.2 | — | 810.7 | ||||||||||||
Total Reliance shareholders’ equity | 3,874.60 | 4,450.10 | 510 | (4,960.1 | ) | 3,874.60 | |||||||||||
Noncontrolling interests | — | 6.4 | 3.4 | — | 9.8 | ||||||||||||
Total equity | 3,874.60 | 4,456.50 | 513.4 | (4,960.1 | ) | 3,884.40 | |||||||||||
Total liabilities and equity | $ | 6,325.80 | $ | 6,889.30 | $ | 1,152.30 | $ | (7,026.4 | ) | $ | 7,341.00 | ||||||
Condensed Unaudited Consolidating Statement of Income | |||||||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||
(in millions) | |||||||||||||||||
Non- | |||||||||||||||||
Guarantor | Guarantor | Consolidating | |||||||||||||||
Parent | Subsidiaries | Subsidiaries | Adjustments | Consolidated | |||||||||||||
Net sales | $ | 182.4 | $ | 2,244.90 | $ | 187.6 | $ | (61.9 | ) | $ | 2,553.00 | ||||||
Costs and expenses: | |||||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 146.1 | 1,678.60 | 143 | (61.9 | ) | 1,905.80 | |||||||||||
Warehouse, delivery, selling, general and administrative | 45.1 | 381.1 | 31.2 | (16.4 | ) | 441 | |||||||||||
Depreciation and amortization | 4.5 | 42.9 | 4.5 | — | 51.9 | ||||||||||||
195.7 | 2,102.60 | 178.7 | (78.3 | ) | 2,398.70 | ||||||||||||
Operating (loss) income | (13.3 | ) | 142.3 | 8.9 | 16.4 | 154.3 | |||||||||||
Other income (expense): | |||||||||||||||||
Interest | (19.2 | ) | (6.2 | ) | (1.2 | ) | 6.4 | (20.2 | ) | ||||||||
Other income (expense), net | 20.5 | (0.2 | ) | 2.5 | (22.8 | ) | — | ||||||||||
(Loss) income before equity in earnings of subsidiaries and income taxes | (12.0 | ) | 135.9 | 10.2 | — | 134.1 | |||||||||||
Equity in earnings of subsidiaries | 84.7 | 2.8 | — | (87.5 | ) | — | |||||||||||
Income before income taxes | 72.7 | 138.7 | 10.2 | (87.5 | ) | 134.1 | |||||||||||
Income tax (benefit) provision | (14.5 | ) | 56.8 | 3.9 | — | 46.2 | |||||||||||
Net income | 87.2 | 81.9 | 6.3 | (87.5 | ) | 87.9 | |||||||||||
Less: Net income attributable to noncontrolling interests | — | 0.7 | — | — | 0.7 | ||||||||||||
Net income attributable to Reliance | $ | 87.2 | $ | 81.2 | $ | 6.3 | $ | (87.5 | ) | $ | 87.2 | ||||||
Comprehensive income (loss) attributable to Reliance | $ | 87.4 | $ | 81.3 | $ | (2.8 | ) | $ | (87.5 | ) | $ | 78.4 | |||||
Condensed Unaudited Consolidating Statement of Income | |||||||||||||||||
For the three months ended March 31, 2013 | |||||||||||||||||
(in millions) | |||||||||||||||||
Non- | |||||||||||||||||
Guarantor | Guarantor | Consolidating | |||||||||||||||
Parent | Subsidiaries | Subsidiaries | Adjustments | Consolidated | |||||||||||||
Net sales | $ | 179.4 | $ | 1,738.70 | $ | 163.7 | $ | (56.5 | ) | $ | 2,025.30 | ||||||
Costs and expenses: | |||||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 138.1 | 1,291.40 | 123.5 | (56.5 | ) | 1,496.50 | |||||||||||
Warehouse, delivery, selling, general and administrative | 50.9 | 299.6 | 23.3 | (16.1 | ) | 357.7 | |||||||||||
Depreciation and amortization | 4 | 33.6 | 3.5 | — | 41.1 | ||||||||||||
193 | 1,624.60 | 150.3 | (72.6 | ) | 1,895.30 | ||||||||||||
Operating (loss) income | (13.6 | ) | 114.1 | 13.4 | 16.1 | 130 | |||||||||||
Other income (expense): | |||||||||||||||||
Interest | (13.1 | ) | (2.5 | ) | (0.5 | ) | 3 | (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 | ||||||
Comprehensive income attributable to Reliance | $ | 82.2 | $ | 77.5 | $ | 1.5 | $ | (87.4 | ) | $ | 73.8 | ||||||
Condensed Unaudited Consolidating Cash Flow Statement | |||||||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||
(in millions) | |||||||||||||||||
Non- | |||||||||||||||||
Guarantor | Guarantor | Consolidating | |||||||||||||||
Parent | Subsidiaries | Subsidiaries | Adjustments | Consolidated | |||||||||||||
Cash provided by (used in) operating activities | $ | 164.6 | $ | (94.5 | ) | $ | (1.3 | ) | $ | — | $ | 68.8 | |||||
Investing activities: | |||||||||||||||||
Purchases of property, plant and equipment | (3.3 | ) | (23.7 | ) | (1.9 | ) | — | (28.9 | ) | ||||||||
Net advances to subsidiaries | (134.6 | ) | — | — | 134.6 | — | |||||||||||
Other investing activities, net | 0.1 | (9.2 | ) | — | — | (9.1 | ) | ||||||||||
Cash used in investing activities | (137.8 | ) | (32.9 | ) | (1.9 | ) | 134.6 | (38.0 | ) | ||||||||
Financing activities: | |||||||||||||||||
Net short-term debt borrowings | — | — | 0.3 | — | 0.3 | ||||||||||||
Proceed from long-term debt borrowings | 160 | — | — | — | 160 | ||||||||||||
Principal payments on long-term debt | (141.3 | ) | (0.4 | ) | — | — | (141.7 | ) | |||||||||
Dividends paid | (27.1 | ) | — | — | — | (27.1 | ) | ||||||||||
Intercompany borrowings | — | 119.1 | 15.5 | (134.6 | ) | — | |||||||||||
Other financing activities, net | 8.7 | — | — | — | 8.7 | ||||||||||||
Cash provided by financing activities | 0.3 | 118.7 | 15.8 | (134.6 | ) | 0.2 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (1.0 | ) | — | (1.0 | ) | ||||||||||
Increase (decrease) in cash and cash equivalents | 27.1 | (8.7 | ) | 11.6 | — | 30 | |||||||||||
Cash and cash equivalents at beginning of year | 19.7 | (0.8 | ) | 64.7 | — | 83.6 | |||||||||||
Cash and cash equivalents at end of period | $ | 46.8 | $ | (9.5 | ) | $ | 76.3 | $ | — | $ | 113.6 | ||||||
Condensed Unaudited Consolidating Cash Flow Statement | |||||||||||||||||
For the three months ended March 31, 2013 | |||||||||||||||||
(in millions) | |||||||||||||||||
Non- | |||||||||||||||||
Guarantor | Guarantor | Consolidating | |||||||||||||||
Parent | Subsidiaries | Subsidiaries | Adjustments | Consolidated | |||||||||||||
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 | ||||||||||||
Proceed from long-term debt borrowings | 50 | — | — | — | 50 | ||||||||||||
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 | |||||||
Acquisitions_Tables
Acquisitions (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Acquisitions | ' | ||||
Schedule of Metals USA pro forma information | ' | ||||
Three Months Ended | |||||
March 31, 2013 | |||||
(in millions, except | |||||
per share amounts) | |||||
Pro forma: | |||||
Net sales | $ | 2,484.40 | |||
Net income attributable to Reliance | $ | 88.4 | |||
Diluted earnings per common share | |||||
attributable to Reliance shareholders | $ | 1.15 | |||
Basic earnings per common share | |||||
attributable to Reliance shareholders | $ | 1.16 | |||
Metals USA | ' | ||||
Acquisitions | ' | ||||
Schedule of allocation of the purchase price of acquisition to the fair value of the assets acquired and liabilities assumed | ' | ||||
(in millions) | |||||
Cash | $ | 3.2 | |||
Accounts receivable | 206 | ||||
Inventories | 379.5 | ||||
Property, plant and equipment | 242.6 | ||||
Goodwill | 382.7 | ||||
Intangible assets subject to amortization | 137.6 | ||||
Intangible assets not subject to amortization | 203 | ||||
Other current and long-term assets | 9.1 | ||||
Total assets acquired | 1,563.70 | ||||
Current and long-term debt | 486.1 | ||||
Deferred taxes | 184.4 | ||||
Other current and long-term liabilities | 126.4 | ||||
Total liabilities assumed | 796.9 | ||||
Net assets acquired | $ | 766.8 |
Goodwill_Tables
Goodwill (Tables) | 3 Months Ended | ||||
Mar. 31, 2014 | |||||
Goodwill. | ' | ||||
Schedule of changes in the carrying amount of goodwill | ' | ||||
(in millions) | |||||
Balance at December 31, 2013 | $ | 1,691.60 | |||
Purchase price allocation adjustment | 1.2 | ||||
Effect of foreign currency translation | (2.5 | ) | |||
Balance at March 31, 2014 | $ | 1,690.30 |
Intangible_Assets_net_Tables
Intangible Assets, net (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Intangible Assets, net | ' | |||||||||||||
Summarizes our intangible assets, net | ' | |||||||||||||
March 31, 2014 | December 31, 2013 | |||||||||||||
Gross | Gross | |||||||||||||
Carrying | Accumulated | Carrying | Accumulated | |||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||
(in millions) | ||||||||||||||
Intangible assets subject to amortization: | ||||||||||||||
Covenants not to compete | $ | 8 | $ | (7.3 | ) | $ | 8 | $ | (7.3 | ) | ||||
Loan fees | 41.5 | (24.9 | ) | 41.5 | (24.1 | ) | ||||||||
Customer lists/relationships | 652 | (212.6 | ) | 654.3 | (200.6 | ) | ||||||||
Software – internal use | 8.1 | (6.5 | ) | 8.1 | (6.3 | ) | ||||||||
Other | 7.4 | (3.2 | ) | 7.4 | (2.7 | ) | ||||||||
717 | (254.5 | ) | 719.3 | (241.0 | ) | |||||||||
Intangible assets not subject to amortization: | ||||||||||||||
Trade names | 734.2 | — | 735.5 | — | ||||||||||
$ | 1,451.20 | $ | (254.5 | ) | $ | 1,454.80 | $ | (241.0 | ) | |||||
Summary of estimated aggregated amortization expense | ' | |||||||||||||
The following is a summary of estimated aggregated amortization expense for the remaining nine months of 2014 and each of the succeeding five years: | ||||||||||||||
(in millions) | ||||||||||||||
2014 | $ | 41.6 | ||||||||||||
2015 | 53.6 | |||||||||||||
2016 | 51.9 | |||||||||||||
2017 | 47.4 | |||||||||||||
2018 | 41.2 | |||||||||||||
2019 | 40.5 | |||||||||||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt | ' | |||||||
Summary of debt | ' | |||||||
March 31, | December 31, | |||||||
2014 | 2013 | |||||||
(in millions) | ||||||||
Unsecured revolving credit facility due April 4, 2018 | $ | 505 | $ | 480 | ||||
Senior unsecured term loan due from June 30, 2014 to April 4, 2018 | 461.3 | 467.5 | ||||||
Senior unsecured notes due November 15, 2016 | 350 | 350 | ||||||
Senior unsecured notes due April 15, 2023 | 500 | 500 | ||||||
Senior unsecured notes due November 15, 2036 | 250 | 250 | ||||||
Other notes and revolving credit facilities | 64.7 | 64.8 | ||||||
Total | 2,131.00 | 2,112.30 | ||||||
Less: unamortized discount | (3.2 | ) | (3.3 | ) | ||||
Less: amounts due within one year and short-term borrowings | (36.8 | ) | (36.5 | ) | ||||
Total long-term debt | $ | 2,091.00 | $ | 2,072.50 |
Equity_Tables
Equity (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2014 | ||||||||||||||
Equity | ' | |||||||||||||
Schedule of accumulated other comprehensive loss | ' | |||||||||||||
Unrealized | Pension and | Accumulated | ||||||||||||
Foreign Currency | Gain on | Postretirement | Other | |||||||||||
Translation | Investments, | Benefit Adjustments, | Comprehensive | |||||||||||
Gain (Loss) | Net of Tax | Net of Tax | Loss | |||||||||||
(in millions) | ||||||||||||||
Balance as of December 31, 2013 | $ | 3.2 | $ | 0.2 | $ | (10.1 | ) | $ | (6.7 | ) | ||||
Current-period change | (8.9 | ) | 0.1 | — | (8.8 | ) | ||||||||
Balance as of March 31, 2014 | $ | (5.7 | ) | $ | 0.3 | $ | (10.1 | ) | $ | (15.5 | ) |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Earnings Per Share | ' | |||||||
Computation of basic and diluted earnings per share | ' | |||||||
Three Months Ended | ||||||||
March 31, | ||||||||
2014 | 2013 | |||||||
(in millions, except share and per share | ||||||||
amounts) | ||||||||
Numerator: | ||||||||
Net income attributable to Reliance | $ | 87.2 | $ | 83.7 | ||||
Denominator: | ||||||||
Denominator for basic earnings per share: | ||||||||
Weighted average shares | 77,507,406 | 76,297,108 | ||||||
Effect of dilutive securities: | ||||||||
Stock options, restricted stock, and RSUs | 850,426 | 783,595 | ||||||
Denominator for dilutive earnings per share: | ||||||||
Adjusted weighted average shares and assumed conversions | 78,357,832 | 77,080,703 | ||||||
Net income per share attributable to Reliance shareholders – diluted | $ | 1.11 | $ | 1.09 | ||||
Net income per share attributable to Reliance shareholders – basic | $ | 1.13 | $ | 1.1 |
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Statements (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Condensed Consolidating Financial Statements | ' | ||||||||||||||||
Schedule of Condensed Consolidating Balance Sheet | ' | ||||||||||||||||
As of March 31, 2014 | |||||||||||||||||
(in millions) | |||||||||||||||||
Non- | |||||||||||||||||
Guarantor | Guarantor | Consolidating | |||||||||||||||
Parent | Subsidiaries | Subsidiaries | Adjustments | Consolidated | |||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 46.8 | $ | (9.5 | ) | $ | 76.3 | $ | — | $ | 113.6 | ||||||
Accounts receivable, less allowance for doubtful accounts | 79 | 976 | 105.1 | — | 1,160.10 | ||||||||||||
Inventories | 60.5 | 1,449.80 | 145.9 | — | 1,656.20 | ||||||||||||
Income taxes receivable | 49.9 | — | — | (49.9 | ) | — | |||||||||||
Intercompany receivables | 0.4 | 20.7 | 1.5 | (22.6 | ) | — | |||||||||||
Other current assets | 109.2 | 51.9 | 10.6 | (76.5 | ) | 95.2 | |||||||||||
Total current assets | 345.8 | 2,488.90 | 339.4 | (149.0 | ) | 3,025.10 | |||||||||||
Investments in subsidiaries | 4,555.00 | 211.5 | — | (4,766.5 | ) | — | |||||||||||
Property, plant and equipment, net | 100.6 | 1,291.10 | 202.3 | — | 1,594.00 | ||||||||||||
Goodwill | 23.8 | 1,556.80 | 109.7 | — | 1,690.30 | ||||||||||||
Intangible assets, net | 34.4 | 1,048.20 | 114.1 | — | 1,196.70 | ||||||||||||
Intercompany receivables | 1,376.60 | 112.4 | 10.1 | (1,499.1 | ) | — | |||||||||||
Other assets | 20.9 | 64.4 | 5.3 | — | 90.6 | ||||||||||||
Total assets | $ | 6,457.10 | $ | 6,773.30 | $ | 780.9 | $ | (6,414.6 | ) | $ | 7,596.70 | ||||||
Liabilities & Equity | |||||||||||||||||
Accounts payable | $ | 43.3 | $ | 403.1 | $ | 33.5 | $ | (22.6 | ) | $ | 457.3 | ||||||
Accrued compensation and retirement costs | 9.5 | 69.5 | 8.9 | — | 87.9 | ||||||||||||
Other current liabilities | 79.5 | 91.5 | 44.4 | (51.2 | ) | 164.2 | |||||||||||
Deferred income taxes | — | 75.2 | — | (75.2 | ) | — | |||||||||||
Current maturities of long-term debt and short-term borrowings | 25.3 | — | 11.5 | — | 36.8 | ||||||||||||
Total current liabilities | 157.6 | 639.3 | 98.3 | (149.0 | ) | 746.2 | |||||||||||
Long-term debt | 2,038.10 | 5.7 | 47.2 | — | 2,091.00 | ||||||||||||
Intercompany borrowings | — | 1,321.70 | 177.4 | (1,499.1 | ) | — | |||||||||||
Other long-term liabilities | 321.9 | 446.6 | 41 | — | 809.5 | ||||||||||||
Total Reliance shareholders’ equity | 3,939.50 | 4,352.90 | 413.6 | (4,766.5 | ) | 3,939.50 | |||||||||||
Noncontrolling interests | — | 7.1 | 3.4 | — | 10.5 | ||||||||||||
Total equity | 3,939.50 | 4,360.00 | 417 | (4,766.5 | ) | 3,950.00 | |||||||||||
Total liabilities and equity | $ | 6,457.10 | $ | 6,773.30 | $ | 780.9 | $ | (6,414.6 | ) | $ | 7,596.70 | ||||||
As of December 31, 2013 | |||||||||||||||||
(in millions) | |||||||||||||||||
Non- | |||||||||||||||||
Guarantor | Guarantor | Consolidating | |||||||||||||||
Parent | Subsidiaries | Subsidiaries | Adjustments | Consolidated | |||||||||||||
Assets | |||||||||||||||||
Cash and cash equivalents | $ | 19.7 | $ | (0.8 | ) | $ | 64.7 | $ | — | $ | 83.6 | ||||||
Accounts receivable, less allowance for doubtful accounts | 64.1 | 820.3 | 99.1 | — | 983.5 | ||||||||||||
Inventories | 52.6 | 1,344.80 | 142.6 | — | 1,540.00 | ||||||||||||
Income taxes receivable | 34.4 | — | — | (0.5 | ) | 33.9 | |||||||||||
Intercompany receivables | 0.3 | 350.6 | 2.2 | (353.1 | ) | — | |||||||||||
Other current assets | 124.8 | 40.8 | 8.9 | (76.6 | ) | 97.9 | |||||||||||
Total current assets | 295.9 | 2,555.70 | 317.5 | (430.2 | ) | 2,738.90 | |||||||||||
Investments in subsidiaries | 4,647.70 | 312.4 | — | (4,960.1 | ) | — | |||||||||||
Property, plant and equipment, net | 100.8 | 1,298.70 | 204.4 | — | 1,603.90 | ||||||||||||
Goodwill | 23.8 | 1,555.70 | 112.1 | — | 1,691.60 | ||||||||||||
Intangible assets, net | 17.4 | 1,077.80 | 118.6 | — | 1,213.80 | ||||||||||||
Intercompany receivables | 1,219.40 | 22.4 | 394.3 | (1,636.1 | ) | — | |||||||||||
Other assets | 20.8 | 66.6 | 5.4 | — | 92.8 | ||||||||||||
Total assets | $ | 6,325.80 | $ | 6,889.30 | $ | 1,152.30 | $ | (7,026.4 | ) | $ | 7,341.00 | ||||||
Liabilities & Equity | |||||||||||||||||
Accounts payable | $ | 29.1 | $ | 185.8 | $ | 418.5 | $ | (353.1 | ) | $ | 280.3 | ||||||
Accrued compensation and retirement costs | 21.1 | 85.9 | 12.5 | — | 119.5 | ||||||||||||
Other current liabilities | 53.5 | 63.1 | 22.4 | (1.9 | ) | 137.1 | |||||||||||
Deferred income taxes | — | 75.2 | — | (75.2 | ) | — | |||||||||||
Current maturities of long-term debt and short-term borrowings | 25.3 | — | 11.2 | — | 36.5 | ||||||||||||
Total current liabilities | 129 | 410 | 464.6 | (430.2 | ) | 573.4 | |||||||||||
Long-term debt | 2,019.20 | 5.7 | 47.6 | — | 2,072.50 | ||||||||||||
Intercompany borrowings | — | 1,550.60 | 85.5 | (1,636.1 | ) | — | |||||||||||
Other long-term liabilities | 303 | 466.5 | 41.2 | — | 810.7 | ||||||||||||
Total Reliance shareholders’ equity | 3,874.60 | 4,450.10 | 510 | (4,960.1 | ) | 3,874.60 | |||||||||||
Noncontrolling interests | — | 6.4 | 3.4 | — | 9.8 | ||||||||||||
Total equity | 3,874.60 | 4,456.50 | 513.4 | (4,960.1 | ) | 3,884.40 | |||||||||||
Total liabilities and equity | $ | 6,325.80 | $ | 6,889.30 | $ | 1,152.30 | $ | (7,026.4 | ) | $ | 7,341.00 | ||||||
Schedule of Condensed Consolidating Statement of Income | ' | ||||||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||
(in millions) | |||||||||||||||||
Non- | |||||||||||||||||
Guarantor | Guarantor | Consolidating | |||||||||||||||
Parent | Subsidiaries | Subsidiaries | Adjustments | Consolidated | |||||||||||||
Net sales | $ | 182.4 | $ | 2,244.90 | $ | 187.6 | $ | (61.9 | ) | $ | 2,553.00 | ||||||
Costs and expenses: | |||||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 146.1 | 1,678.60 | 143 | (61.9 | ) | 1,905.80 | |||||||||||
Warehouse, delivery, selling, general and administrative | 45.1 | 381.1 | 31.2 | (16.4 | ) | 441 | |||||||||||
Depreciation and amortization | 4.5 | 42.9 | 4.5 | — | 51.9 | ||||||||||||
195.7 | 2,102.60 | 178.7 | (78.3 | ) | 2,398.70 | ||||||||||||
Operating (loss) income | (13.3 | ) | 142.3 | 8.9 | 16.4 | 154.3 | |||||||||||
Other income (expense): | |||||||||||||||||
Interest | (19.2 | ) | (6.2 | ) | (1.2 | ) | 6.4 | (20.2 | ) | ||||||||
Other income (expense), net | 20.5 | (0.2 | ) | 2.5 | (22.8 | ) | — | ||||||||||
(Loss) income before equity in earnings of subsidiaries and income taxes | (12.0 | ) | 135.9 | 10.2 | — | 134.1 | |||||||||||
Equity in earnings of subsidiaries | 84.7 | 2.8 | — | (87.5 | ) | — | |||||||||||
Income before income taxes | 72.7 | 138.7 | 10.2 | (87.5 | ) | 134.1 | |||||||||||
Income tax (benefit) provision | (14.5 | ) | 56.8 | 3.9 | — | 46.2 | |||||||||||
Net income | 87.2 | 81.9 | 6.3 | (87.5 | ) | 87.9 | |||||||||||
Less: Net income attributable to noncontrolling interests | — | 0.7 | — | — | 0.7 | ||||||||||||
Net income attributable to Reliance | $ | 87.2 | $ | 81.2 | $ | 6.3 | $ | (87.5 | ) | $ | 87.2 | ||||||
Comprehensive income (loss) attributable to Reliance | $ | 87.4 | $ | 81.3 | $ | (2.8 | ) | $ | (87.5 | ) | $ | 78.4 | |||||
For the three months ended March 31, 2013 | |||||||||||||||||
(in millions) | |||||||||||||||||
Non- | |||||||||||||||||
Guarantor | Guarantor | Consolidating | |||||||||||||||
Parent | Subsidiaries | Subsidiaries | Adjustments | Consolidated | |||||||||||||
Net sales | $ | 179.4 | $ | 1,738.70 | $ | 163.7 | $ | (56.5 | ) | $ | 2,025.30 | ||||||
Costs and expenses: | |||||||||||||||||
Cost of sales (exclusive of depreciation and amortization shown below) | 138.1 | 1,291.40 | 123.5 | (56.5 | ) | 1,496.50 | |||||||||||
Warehouse, delivery, selling, general and administrative | 50.9 | 299.6 | 23.3 | (16.1 | ) | 357.7 | |||||||||||
Depreciation and amortization | 4 | 33.6 | 3.5 | — | 41.1 | ||||||||||||
193 | 1,624.60 | 150.3 | (72.6 | ) | 1,895.30 | ||||||||||||
Operating (loss) income | (13.6 | ) | 114.1 | 13.4 | 16.1 | 130 | |||||||||||
Other income (expense): | |||||||||||||||||
Interest | (13.1 | ) | (2.5 | ) | (0.5 | ) | 3 | (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 | ||||||
Comprehensive income attributable to Reliance | $ | 82.2 | $ | 77.5 | $ | 1.5 | $ | (87.4 | ) | $ | 73.8 | ||||||
Schedule of Condensed Consolidating Cash Flow Statement | ' | ||||||||||||||||
For the three months ended March 31, 2014 | |||||||||||||||||
(in millions) | |||||||||||||||||
Non- | |||||||||||||||||
Guarantor | Guarantor | Consolidating | |||||||||||||||
Parent | Subsidiaries | Subsidiaries | Adjustments | Consolidated | |||||||||||||
Cash provided by (used in) operating activities | $ | 164.6 | $ | (94.5 | ) | $ | (1.3 | ) | $ | — | $ | 68.8 | |||||
Investing activities: | |||||||||||||||||
Purchases of property, plant and equipment | (3.3 | ) | (23.7 | ) | (1.9 | ) | — | (28.9 | ) | ||||||||
Net advances to subsidiaries | (134.6 | ) | — | — | 134.6 | — | |||||||||||
Other investing activities, net | 0.1 | (9.2 | ) | — | — | (9.1 | ) | ||||||||||
Cash used in investing activities | (137.8 | ) | (32.9 | ) | (1.9 | ) | 134.6 | (38.0 | ) | ||||||||
Financing activities: | |||||||||||||||||
Net short-term debt borrowings | — | — | 0.3 | — | 0.3 | ||||||||||||
Proceed from long-term debt borrowings | 160 | — | — | — | 160 | ||||||||||||
Principal payments on long-term debt | (141.3 | ) | (0.4 | ) | — | — | (141.7 | ) | |||||||||
Dividends paid | (27.1 | ) | — | — | — | (27.1 | ) | ||||||||||
Intercompany borrowings | — | 119.1 | 15.5 | (134.6 | ) | — | |||||||||||
Other financing activities, net | 8.7 | — | — | — | 8.7 | ||||||||||||
Cash provided by financing activities | 0.3 | 118.7 | 15.8 | (134.6 | ) | 0.2 | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | — | (1.0 | ) | — | (1.0 | ) | ||||||||||
Increase (decrease) in cash and cash equivalents | 27.1 | (8.7 | ) | 11.6 | — | 30 | |||||||||||
Cash and cash equivalents at beginning of year | 19.7 | (0.8 | ) | 64.7 | — | 83.6 | |||||||||||
Cash and cash equivalents at end of period | $ | 46.8 | $ | (9.5 | ) | $ | 76.3 | $ | — | $ | 113.6 | ||||||
For the three months ended March 31, 2013 | |||||||||||||||||
(in millions) | |||||||||||||||||
Non- | |||||||||||||||||
Guarantor | Guarantor | Consolidating | |||||||||||||||
Parent | Subsidiaries | Subsidiaries | Adjustments | Consolidated | |||||||||||||
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 | ||||||||||||
Proceed from long-term debt borrowings | 50 | — | — | — | 50 | ||||||||||||
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 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 3 Months Ended | 0 Months Ended | 3 Months Ended | |||||||
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 | Apr. 12, 2013 | Apr. 12, 2013 | Apr. 30, 2013 | Apr. 12, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 |
Term loan expiring April 4, 2018 | Senior unsecured notes due 2023 | Travel Main | Metals USA | Metals USA | Metals USA | Haskins Steel Co., Inc. (Haskins Steel) | ||||
item | item | |||||||||
Acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $2,553 | $2,025.30 | ' | ' | ' | ' | ' | $454.50 | ' | $8 |
Number of real estate properties of acquired entity which were leased by subsidiaries of reporting entity | ' | ' | ' | ' | ' | 18 | ' | ' | ' | ' |
Total transaction value | ' | ' | ' | ' | ' | 78.9 | 1,250 | ' | ' | ' |
Value of debt assumed | ' | ' | ' | ' | ' | 43.8 | 486.1 | ' | ' | ' |
Number of service centers acquired | ' | ' | ' | ' | ' | ' | 44 | ' | ' | ' |
Purchase price | ' | ' | ' | ' | ' | ' | 766.8 | ' | ' | ' |
Acquired debt not refinanced through proceeds from debt | ' | ' | ' | ' | ' | ' | 12.3 | ' | ' | ' |
Face amount of debt, proceeds from which is used to fund transaction | ' | ' | ' | 500 | 500 | ' | ' | ' | ' | ' |
Transaction related costs | ' | 3.1 | ' | ' | ' | ' | ' | ' | ' | ' |
Allocation of the total purchase price of acquisitions to the fair value of the assets acquired and liabilities assumed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | ' | ' | ' | ' | 3.2 | ' | ' |
Accounts receivable | ' | ' | ' | ' | ' | ' | ' | 206 | ' | ' |
Inventories | ' | ' | ' | ' | ' | ' | ' | 379.5 | ' | ' |
Property, plant and equipment | ' | ' | ' | ' | ' | ' | ' | 242.6 | ' | ' |
Goodwill | 1,690.30 | ' | 1,691.60 | ' | ' | ' | ' | 382.7 | ' | ' |
Intangible assets subject to amortization | ' | ' | ' | ' | ' | ' | ' | 137.6 | ' | ' |
Intangible assets not subject to amortization | ' | ' | ' | ' | ' | ' | ' | 203 | ' | ' |
Other current and long-term assets | ' | ' | ' | ' | ' | ' | ' | 9.1 | ' | ' |
Total assets acquired | ' | ' | ' | ' | ' | ' | ' | 1,563.70 | ' | ' |
Current and long-term debt | ' | ' | ' | ' | ' | ' | ' | 486.1 | ' | ' |
Deferred taxes | ' | ' | ' | ' | ' | ' | ' | 184.4 | ' | ' |
Other current and long-term liabilities | ' | ' | ' | ' | ' | ' | ' | 126.4 | ' | ' |
Total liabilities assumed | ' | ' | ' | ' | ' | ' | ' | 796.9 | ' | ' |
Net assets acquired | ' | ' | ' | ' | ' | ' | ' | 766.8 | ' | ' |
Pro forma financial information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Acquisition and related costs | ' | ' | ' | ' | ' | ' | ' | ' | 5.2 | ' |
Pro forma: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | ' | ' | ' | ' | ' | ' | ' | ' | 2,484.40 | ' |
Net income attributable to Reliance | ' | ' | ' | ' | ' | ' | ' | ' | $88.40 | ' |
Diluted earnings per common share attributable to Reliance shareholders (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $1.15 | ' |
Basic earnings per common share attributable to Reliance shareholders (in dollars per share) | ' | ' | ' | ' | ' | ' | ' | ' | $1.16 | ' |
Goodwill_Details
Goodwill (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Change in the carrying amount of goodwill | ' |
Balance at the beginning of the period | $1,691.60 |
Purchase price allocation adjustments | 1.2 |
Effect of foreign currency translation | -2.5 |
Balance at the end of the period | 1,690.30 |
Accumulated impairment losses | $0 |
Intangible_Assets_net_Details
Intangible Assets, net (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Intangible assets subject to amortization: | ' | ' | ' |
Intangible assets subject to amortization, Gross Carrying Amount | $717 | ' | $719.30 |
Intangible assets subject to amortization, Accumulated Amortization | -254.5 | ' | -241 |
Intangible assets | ' | ' | ' |
Intangible assets, Gross Carrying Amount | 1,451.20 | ' | 1,454.80 |
Amortization expense for intangible assets | 14.1 | 11.3 | ' |
Changes in intangible assets due to foreign currency translation losses | 3 | ' | ' |
Summary of estimated aggregated amortization expense for the remaining nine months of 2014 and each of the succeeding five years | ' | ' | ' |
2014 | 41.6 | ' | ' |
2015 | 53.6 | ' | ' |
2016 | 51.9 | ' | ' |
2017 | 47.4 | ' | ' |
2018 | 41.2 | ' | ' |
2019 | 40.5 | ' | ' |
Trade names | ' | ' | ' |
Intangible assets not subject to amortization: | ' | ' | ' |
Intangible assets not subject to amortization, Gross Carrying Amount | 734.2 | ' | 735.5 |
Covenants not to compete | ' | ' | ' |
Intangible assets subject to amortization: | ' | ' | ' |
Intangible assets subject to amortization, Gross Carrying Amount | 8 | ' | 8 |
Intangible assets subject to amortization, Accumulated Amortization | -7.3 | ' | -7.3 |
Loan fees | ' | ' | ' |
Intangible assets subject to amortization: | ' | ' | ' |
Intangible assets subject to amortization, Gross Carrying Amount | 41.5 | ' | 41.5 |
Intangible assets subject to amortization, Accumulated Amortization | -24.9 | ' | -24.1 |
Customer lists/relationships | ' | ' | ' |
Intangible assets subject to amortization: | ' | ' | ' |
Intangible assets subject to amortization, Gross Carrying Amount | 652 | ' | 654.3 |
Intangible assets subject to amortization, Accumulated Amortization | -212.6 | ' | -200.6 |
Software - internal use | ' | ' | ' |
Intangible assets subject to amortization: | ' | ' | ' |
Intangible assets subject to amortization, Gross Carrying Amount | 8.1 | ' | 8.1 |
Intangible assets subject to amortization, Accumulated Amortization | -6.5 | ' | -6.3 |
Other | ' | ' | ' |
Intangible assets subject to amortization: | ' | ' | ' |
Intangible assets subject to amortization, Gross Carrying Amount | 7.4 | ' | 7.4 |
Intangible assets subject to amortization, Accumulated Amortization | ($3.20) | ' | ($2.70) |
Income_Taxes_Details
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Income Taxes | ' | ' |
Effective tax rate (as a percent) | 34.50% | 29.50% |
U.S. federal statutory rate (as a percent) | 35.00% | ' |
Debt_Details
Debt (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt | ' | ' |
Total | $2,131 | $2,112.30 |
Less: unamortized discount | -3.2 | -3.3 |
Less: amounts due within one year and short-term borrowings | -36.8 | -36.5 |
Total long-term debt | 2,091 | 2,072.50 |
Unsecured revolving credit facility due April 4, 2018 | ' | ' |
Debt | ' | ' |
Total | 505 | 480 |
Senior unsecured term loan due from June 30, 2014 to April 4, 2018 | ' | ' |
Debt | ' | ' |
Total | 461.3 | 467.5 |
Senior unsecured notes due November 15, 2016 | ' | ' |
Debt | ' | ' |
Total | 350 | 350 |
Senior unsecured notes due April 15, 2023 | ' | ' |
Debt | ' | ' |
Total | 500 | 500 |
Senior unsecured notes due November 15, 2036 | ' | ' |
Debt | ' | ' |
Total | 250 | 250 |
Other notes and revolving credit facilities | ' | ' |
Debt | ' | ' |
Total | $64.70 | $64.80 |
Debt_Details_2
Debt (Details 2) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Apr. 04, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Apr. 02, 2013 | Apr. 04, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Nov. 30, 2006 | Nov. 30, 2006 | Mar. 31, 2014 | Dec. 31, 2013 | Nov. 30, 2006 | Mar. 31, 2014 | Dec. 31, 2013 | Apr. 12, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Apr. 04, 2013 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2014 |
In Millions, unless otherwise specified | Third Amended and Restated Credit Agreement | Unsecured revolving credit facility | Unsecured revolving credit facility | Unsecured revolving credit facility | Unsecured revolving credit facility | Unsecured revolving credit facility | Unsecured revolving credit facility | Senior Unsecured Notes - Publicly Traded | Senior unsecured notes due November 20, 2006 | Senior unsecured notes due November 15, 2016 | Senior unsecured notes due November 15, 2016 | Senior unsecured notes due November 15, 2016 | Senior unsecured notes due November 15, 2036 | Senior unsecured notes due November 15, 2036 | Senior unsecured notes due November 15, 2036 | Senior unsecured notes due April 15, 2023 | Senior unsecured notes due April 15, 2023 | Senior unsecured notes due April 15, 2023 | Unsecured Revolving Credit Facility and Senior Unsecured Notes | Term loan expiring April 4, 2018 | Term loan expiring April 4, 2018 | Other separate revolving credit facilities | Other separate revolving credit facilities | IRB | Mortgage obligations | ||
item | Third Amended and Restated Credit Agreement | LIBOR | Bank prime rate | item | Third Amended and Restated Credit Agreement | Metals USA | Travel Main | ||||||||||||||||||||
Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of banks as lenders | ' | ' | 26 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity of the credit facility | ' | ' | ' | ' | ' | $1,500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $21.60 | ' | ' | ' |
Debt outstanding | 2,131 | 2,112.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 350 | 350 | ' | 250 | 250 | ' | 500 | 500 | ' | ' | ' | ' | ' | 11.9 | 42.7 |
Annual amortization of term loan through March 2015 (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' |
Annual amortization of term loan thereafter until March 2018 (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' | ' | ' | ' |
Increased maximum borrowing capacity under the credit subject to approval of the lenders and certain other conditions | ' | ' | ' | ' | ' | ' | 500 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable interest rate | ' | ' | ' | ' | ' | ' | ' | 'LIBOR | 'Bank prime rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate added to base (as a percent) | ' | ' | ' | ' | ' | ' | ' | 1.25% | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee on unused portion of revolving credit facility (as a percent) | ' | ' | ' | 0.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average fixed interest rate (as a percent) | ' | ' | ' | 1.40% | 1.41% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Letters of credit outstanding | ' | ' | ' | 59.2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional amount of letters of credit available to be issued | ' | ' | ' | 190.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Combined outstanding balances of revolving credit facilities | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 9.8 | 9.5 | ' | ' |
Interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6.20% | ' | ' | 6.85% | ' | ' | 4.50% | ' | ' | ' | ' | ' | ' | ' | ' | 6.40% |
Lump sum payment on maturity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 39.2 |
Issuance of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $600 | $350 | ' | ' | $250 | ' | ' | $500 | ' | ' | ' | ' | $500 | ' | ' | ' | ' |
Number of tranches comprising the debt issuance | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of principal amount at which the notes may be required to be repurchased in event of a change of control and a downgrade of the entity's credit rating | ' | ' | ' | ' | ' | ' | ' | ' | ' | 101.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest in domestic subsidiaries (as a percent) | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | ' | ' |
Minimum percentage of consolidated EBITDA required for the entity and subsidiary guarantors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% | ' | ' | ' | ' | ' | ' |
Minimum percentage of consolidated tangible assets required for the entity and subsidiary guarantors | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80.00% | ' | ' | ' | ' | ' | ' |
Equity_Details
Equity (Details) (USD $) | 0 Months Ended | 3 Months Ended | 0 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Apr. 22, 2014 | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 25, 2014 | Mar. 31, 2014 |
Restricted stock, 2013 grant | Restricted stock, 2013 grant | ||||
Equity | ' | ' | ' | ' | ' |
Issuance of common stock in connection with the exercise of employee stock options (in shares) | ' | 174,136 | ' | ' | ' |
Total proceeds from the exercise of employee stock options | ' | $8.40 | $31.60 | ' | ' |
Common stock quarterly dividend per share, after increase (in dollars per share) | $0.35 | ' | ' | ' | ' |
Common stock dividend quarterly declared and paid per share (in dollars per share) | ' | $0.35 | $0.30 | ' | ' |
Dividends paid | ' | $27.10 | $22.90 | ' | ' |
Share Based Compensation | ' | ' | ' | ' | ' |
Restricted stock granted (in shares) | ' | ' | ' | 349,380 | ' |
Share of common stock | ' | ' | ' | 1 | ' |
The number of grants made during the period on the basis service and performance criteria other than stock (or unit) option plans (for example, phantom stock or unit plan, stock or unit appreciation rights plan, performance target plan). | ' | ' | ' | ' | 136,162 |
Fair value of the 2014 RSUs granted (in dollars per share) | ' | ' | ' | $71.15 | ' |
Share Repurchase Program | ' | ' | ' | ' | ' |
Remaining number of common stock authorized for repurchase under stock repurchase program (in shares) | ' | 7,883,033 | ' | ' | ' |
Number of shares repurchased under stock repurchase program | ' | 0 | 0 | ' | ' |
Equity_Details_2
Equity (Details 2) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 |
Schedule of accumulated other comprehensive gain (loss) | ' | ' |
Balance at the beginning of the period | ($6.70) | ' |
Current-period change | 8.8 | ' |
Balance at the end of the period | -15.5 | ' |
Deferred tax assets in accumulated other comprehensive income, unrealized gain on investments | 0.1 | 0.1 |
Deferred tax assets in accumulated other comprehensive income, pension and postretirement benefit adjustments | 6.9 | 6.9 |
Foreign Currency Gain | ' | ' |
Schedule of accumulated other comprehensive gain (loss) | ' | ' |
Balance at the beginning of the period | 3.2 | ' |
Current-period change | -8.9 | ' |
Balance at the end of the period | -5.7 | ' |
Unrealized Gain on Investments, Net of Tax | ' | ' |
Schedule of accumulated other comprehensive gain (loss) | ' | ' |
Balance at the beginning of the period | 0.2 | ' |
Current-period change | 0.1 | ' |
Balance at the end of the period | 0.3 | ' |
Pension and Postretirement Benefit Adjustments, Net of Tax | ' | ' |
Schedule of accumulated other comprehensive gain (loss) | ' | ' |
Balance at the beginning of the period | ' | -10.1 |
Balance at the end of the period | ($10.10) | ($10.10) |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 0 Months Ended | 3 Months Ended |
In Millions, unless otherwise specified | Apr. 29, 2014 | Mar. 31, 2014 |
item | ||
Commitments and Contingencies. | ' | ' |
Number of co-defendants against whom lawsuit was filed | ' | 4 |
Number of former employees engaged in anticompetitive activities | ' | 2 |
Number of defendants | ' | 6 |
Amount of damages awarded to plaintiff | $156 | ' |
Amount of damages expected to be trebled under the federal antitrust laws | ' | 52 |
Reasonable range of potential loss, low end of the range | ' | 10 |
Reasonable range of potential loss, high end of the range | ' | $39 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Numerator: | ' | ' |
Net income attributable to Reliance (in dollars) | $87.20 | $83.70 |
Denominator for basic earnings per share: | ' | ' |
Weighted average shares | 77,507,406 | 76,297,108 |
Effect of dilutive securities: | ' | ' |
Stock options, restricted stock, and RSUs (in shares) | 850,426 | 783,595 |
Denominator for diluted earnings per share: | ' | ' |
Adjusted weighted average shares and assumed conversions | 78,357,832 | 77,080,703 |
Net income per share attributable to Reliance shareholders - diluted (in dollars per share) | $1.11 | $1.09 |
Net income per share attributable to Reliance shareholders - basic (in dollars per share) | $1.13 | $1.10 |
Diluted shares | ' | ' |
Weighted average shares, respectively, for stock options and RSU's, not included in the diluted calculation due to their anti-dilutive effect | 17,625 | 483,680 |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Statements (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2013 | Nov. 30, 2006 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Senior Unsecured Notes - Publicly Traded | Senior Unsecured Notes - Publicly Traded | Reportable legal entities | Reportable legal entities | Reportable legal entities | Reportable legal entities | Reportable legal entities | Reportable legal entities | Reportable legal entities | Reportable legal entities | Reportable legal entities | Reportable legal entities | Reportable legal entities | Reportable legal entities | Consolidating Adjustments | Consolidating Adjustments | ||||
Parent | Parent | Parent | Parent | Guarantor Subsidiaries | Guarantor Subsidiaries | Guarantor Subsidiaries | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Non-Guarantor Subsidiaries | |||||||||
Condensed Consolidating Balance Sheet | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount | ' | ' | ' | ' | $1,100 | $1,100 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership interest in domestic subsidiaries (as a percent) | 100.00% | ' | ' | ' | 100.00% | 100.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash and cash equivalents | 113.6 | 83.6 | 100.1 | 97.6 | ' | ' | 46.8 | 19.7 | 33.7 | 28.1 | -9.5 | -0.8 | 13.2 | 13.1 | 76.3 | 64.7 | 53.2 | 56.4 | ' | ' |
Accounts receivable, less allowance for doubtful accounts | 1,160.10 | 983.5 | ' | ' | ' | ' | 79 | 64.1 | ' | ' | 976 | 820.3 | ' | ' | 105.1 | 99.1 | ' | ' | ' | ' |
Inventories | 1,656.20 | 1,540 | ' | ' | ' | ' | 60.5 | 52.6 | ' | ' | 1,449.80 | 1,344.80 | ' | ' | 145.9 | 142.6 | ' | ' | ' | ' |
Income taxes receivable | ' | 33.9 | ' | ' | ' | ' | 49.9 | 34.4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -49.9 | -0.5 |
Intercompany receivables | ' | ' | ' | ' | ' | ' | 0.4 | 0.3 | ' | ' | 20.7 | 350.6 | ' | ' | 1.5 | 2.2 | ' | ' | -22.6 | -353.1 |
Other current assets | 95.2 | 97.9 | ' | ' | ' | ' | 109.2 | 124.8 | ' | ' | 51.9 | 40.8 | ' | ' | 10.6 | 8.9 | ' | ' | -76.5 | -76.6 |
Total current assets | 3,025.10 | 2,738.90 | ' | ' | ' | ' | 345.8 | 295.9 | ' | ' | 2,488.90 | 2,555.70 | ' | ' | 339.4 | 317.5 | ' | ' | -149 | -430.2 |
Investments in subsidiaries | ' | ' | ' | ' | ' | ' | 4,555 | 4,647.70 | ' | ' | 211.5 | 312.4 | ' | ' | ' | ' | ' | ' | -4,766.50 | -4,960.10 |
Property, plant and equipment, net | 1,594 | 1,603.90 | ' | ' | ' | ' | 100.6 | 100.8 | ' | ' | 1,291.10 | 1,298.70 | ' | ' | 202.3 | 204.4 | ' | ' | ' | ' |
Goodwill | 1,690.30 | 1,691.60 | ' | ' | ' | ' | 23.8 | 23.8 | ' | ' | 1,556.80 | 1,555.70 | ' | ' | 109.7 | 112.1 | ' | ' | ' | ' |
Intangible assets, net | 1,196.70 | 1,213.80 | ' | ' | ' | ' | 34.4 | 17.4 | ' | ' | 1,048.20 | 1,077.80 | ' | ' | 114.1 | 118.6 | ' | ' | ' | ' |
Intercompany receivables | ' | ' | ' | ' | ' | ' | 1,376.60 | 1,219.40 | ' | ' | 112.4 | 22.4 | ' | ' | 10.1 | 394.3 | ' | ' | -1,499.10 | -1,636.10 |
Other assets | 90.6 | 92.8 | ' | ' | ' | ' | 20.9 | 20.8 | ' | ' | 64.4 | 66.6 | ' | ' | 5.3 | 5.4 | ' | ' | ' | ' |
Total assets | 7,596.70 | 7,341 | ' | ' | ' | ' | 6,457.10 | 6,325.80 | ' | ' | 6,773.30 | 6,889.30 | ' | ' | 780.9 | 1,152.30 | ' | ' | -6,414.60 | -7,026.40 |
Liabilities & Equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts payable | 457.3 | 280.3 | ' | ' | ' | ' | 43.3 | 29.1 | ' | ' | 403.1 | 185.8 | ' | ' | 33.5 | 418.5 | ' | ' | -22.6 | -353.1 |
Accrued compensation and retirement costs | 87.9 | 119.5 | ' | ' | ' | ' | 9.5 | 21.1 | ' | ' | 69.5 | 85.9 | ' | ' | 8.9 | 12.5 | ' | ' | ' | ' |
Other current liabilities | 164.2 | 137.1 | ' | ' | ' | ' | 79.5 | 53.5 | ' | ' | 91.5 | 63.1 | ' | ' | 44.4 | 22.4 | ' | ' | -51.2 | -1.9 |
Deferred income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 75.2 | 75.2 | ' | ' | ' | ' | ' | ' | -75.2 | -75.2 |
Current maturities of long-term debt and short-term borrowings | 36.8 | 36.5 | ' | ' | ' | ' | 25.3 | 25.3 | ' | ' | ' | ' | ' | ' | 11.5 | 11.2 | ' | ' | ' | ' |
Total current liabilities | 746.2 | 573.4 | ' | ' | ' | ' | 157.6 | 129 | ' | ' | 639.3 | 410 | ' | ' | 98.3 | 464.6 | ' | ' | -149 | -430.2 |
Long-term debt | 2,091 | 2,072.50 | ' | ' | ' | ' | 2,038.10 | 2,019.20 | ' | ' | 5.7 | 5.7 | ' | ' | 47.2 | 47.6 | ' | ' | ' | ' |
Intercompany borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,321.70 | 1,550.60 | ' | ' | 177.4 | 85.5 | ' | ' | -1,499.10 | -1,636.10 |
Other long-term liabilities | 809.5 | 810.7 | ' | ' | ' | ' | 321.9 | 303 | ' | ' | 446.6 | 466.5 | ' | ' | 41 | 41.2 | ' | ' | ' | ' |
Total Reliance shareholders' equity | 3,939.50 | 3,874.60 | ' | ' | ' | ' | 3,939.50 | 3,874.60 | ' | ' | 4,352.90 | 4,450.10 | ' | ' | 413.6 | 510 | ' | ' | -4,766.50 | -4,960.10 |
Noncontrolling interests | 10.5 | 9.8 | ' | ' | ' | ' | ' | ' | ' | ' | 7.1 | 6.4 | ' | ' | 3.4 | 3.4 | ' | ' | ' | ' |
Total equity | 3,950 | 3,884.40 | ' | ' | ' | ' | 3,939.50 | 3,874.60 | ' | ' | 4,360 | 4,456.50 | ' | ' | 417 | 513.4 | ' | ' | -4,766.50 | -4,960.10 |
Total liabilities and equity | $7,596.70 | $7,341 | ' | ' | ' | ' | $6,457.10 | $6,325.80 | ' | ' | $6,773.30 | $6,889.30 | ' | ' | $780.90 | $1,152.30 | ' | ' | ($6,414.60) | ($7,026.40) |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Statements (Details 2) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Condensed Consolidating Statement of Comprehensive Income | ' | ' |
Net sales | $2,553 | $2,025.30 |
Costs and expenses: | ' | ' |
Cost of sales (exclusive of depreciation and amortization shown below) | 1,905.80 | 1,496.50 |
Warehouse, delivery, selling, general and administrative | 441 | 357.7 |
Depreciation and amortization | 51.9 | 41.1 |
Total costs and expenses | 2,398.70 | 1,895.30 |
Operating (loss) income | 154.3 | 130 |
Other income (expense): | ' | ' |
Interest | -20.2 | -13.1 |
Other income (expense), net | ' | 2.9 |
(Loss) income before equity in earnings of subsidiaries and income taxes | 134.1 | 119.8 |
Income before income taxes | 134.1 | 119.8 |
Income tax (benefit) provision | 46.2 | 35.3 |
Net income | 87.9 | 84.5 |
Less: Net income attributable to noncontrolling interests | 0.7 | 0.8 |
Net income attributable to Reliance | 87.2 | 83.7 |
Comprehensive income (loss) attributable to Reliance | 78.4 | 73.8 |
Reportable legal entities | Parent | ' | ' |
Condensed Consolidating Statement of Comprehensive Income | ' | ' |
Net sales | 182.4 | 179.4 |
Costs and expenses: | ' | ' |
Cost of sales (exclusive of depreciation and amortization shown below) | 146.1 | 138.1 |
Warehouse, delivery, selling, general and administrative | 45.1 | 50.9 |
Depreciation and amortization | 4.5 | 4 |
Total costs and expenses | 195.7 | 193 |
Operating (loss) income | -13.3 | -13.6 |
Other income (expense): | ' | ' |
Interest | -19.2 | -13.1 |
Other income (expense), net | 20.5 | 18.3 |
(Loss) income before equity in earnings of subsidiaries and income taxes | -12 | -8.4 |
Equity in earnings of subsidiaries | 84.7 | 82.6 |
Income before income taxes | 72.7 | 74.2 |
Income tax (benefit) provision | -14.5 | -9.5 |
Net income | 87.2 | 83.7 |
Net income attributable to Reliance | 87.2 | 83.7 |
Comprehensive income (loss) attributable to Reliance | 87.4 | 82.2 |
Reportable legal entities | Guarantor Subsidiaries | ' | ' |
Condensed Consolidating Statement of Comprehensive Income | ' | ' |
Net sales | 2,244.90 | 1,738.70 |
Costs and expenses: | ' | ' |
Cost of sales (exclusive of depreciation and amortization shown below) | 1,678.60 | 1,291.40 |
Warehouse, delivery, selling, general and administrative | 381.1 | 299.6 |
Depreciation and amortization | 42.9 | 33.6 |
Total costs and expenses | 2,102.60 | 1,624.60 |
Operating (loss) income | 142.3 | 114.1 |
Other income (expense): | ' | ' |
Interest | -6.2 | -2.5 |
Other income (expense), net | -0.2 | 3.9 |
(Loss) income before equity in earnings of subsidiaries and income taxes | 135.9 | 115.5 |
Equity in earnings of subsidiaries | 2.8 | 4.8 |
Income before income taxes | 138.7 | 120.3 |
Income tax (benefit) provision | 56.8 | 42.2 |
Net income | 81.9 | 78.1 |
Less: Net income attributable to noncontrolling interests | 0.7 | 0.8 |
Net income attributable to Reliance | 81.2 | 77.3 |
Comprehensive income (loss) attributable to Reliance | 81.3 | 77.5 |
Reportable legal entities | Non-Guarantor Subsidiaries | ' | ' |
Condensed Consolidating Statement of Comprehensive Income | ' | ' |
Net sales | 187.6 | 163.7 |
Costs and expenses: | ' | ' |
Cost of sales (exclusive of depreciation and amortization shown below) | 143 | 123.5 |
Warehouse, delivery, selling, general and administrative | 31.2 | 23.3 |
Depreciation and amortization | 4.5 | 3.5 |
Total costs and expenses | 178.7 | 150.3 |
Operating (loss) income | 8.9 | 13.4 |
Other income (expense): | ' | ' |
Interest | -1.2 | -0.5 |
Other income (expense), net | 2.5 | -0.2 |
(Loss) income before equity in earnings of subsidiaries and income taxes | 10.2 | 12.7 |
Income before income taxes | 10.2 | 12.7 |
Income tax (benefit) provision | 3.9 | 2.6 |
Net income | 6.3 | 10.1 |
Net income attributable to Reliance | 6.3 | 10.1 |
Comprehensive income (loss) attributable to Reliance | -2.8 | 1.5 |
Consolidating Adjustments | ' | ' |
Condensed Consolidating Statement of Comprehensive Income | ' | ' |
Net sales | -61.9 | -56.5 |
Costs and expenses: | ' | ' |
Cost of sales (exclusive of depreciation and amortization shown below) | -61.9 | -56.5 |
Warehouse, delivery, selling, general and administrative | -16.4 | -16.1 |
Total costs and expenses | -78.3 | -72.6 |
Operating (loss) income | 16.4 | 16.1 |
Other income (expense): | ' | ' |
Interest | 6.4 | 3 |
Other income (expense), net | -22.8 | -19.1 |
Equity in earnings of subsidiaries | -87.5 | -87.4 |
Income before income taxes | -87.5 | -87.4 |
Net income | -87.5 | -87.4 |
Net income attributable to Reliance | -87.5 | -87.4 |
Comprehensive income (loss) attributable to Reliance | ($87.50) | ($87.40) |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Statements (Details 3) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Condensed Consolidating Cash Flow Statement | ' | ' |
Cash provided by (used in) operating activities | $68.80 | $72.20 |
Investing activities: | ' | ' |
Purchases of property, plant and equipment | -28.9 | -26.8 |
Other investing activities, net | -9.1 | 7.3 |
Net cash used in investing activities | -38 | -19.5 |
Financing activities: | ' | ' |
Net short-term debt borrowings | 0.3 | 3.1 |
Proceed from long-term debt borrowings | 160 | 50 |
Principal payments on long-term debt | -141.7 | -110 |
Dividends paid | -27.1 | -22.9 |
Other financing activities, net | 8.7 | 30.1 |
Net cash provided by (used in) financing activities | 0.2 | -49.7 |
Effect of exchange rate changes on cash and cash equivalents | -1 | -0.5 |
Increase in cash and cash equivalents | 30 | 2.5 |
Cash and cash equivalents at beginning of year | 83.6 | 97.6 |
Cash and cash equivalents at end of period | 113.6 | 100.1 |
Reportable legal entities | Parent | ' | ' |
Condensed Consolidating Cash Flow Statement | ' | ' |
Cash provided by (used in) operating activities | 164.6 | 112.9 |
Investing activities: | ' | ' |
Purchases of property, plant and equipment | -3.3 | -3 |
Net advances to subsidiaries | -134.6 | -52.2 |
Other investing activities, net | 0.1 | ' |
Net cash used in investing activities | -137.8 | -55.2 |
Financing activities: | ' | ' |
Proceed from long-term debt borrowings | 160 | 50 |
Principal payments on long-term debt | -141.3 | -110 |
Dividends paid | -27.1 | -22.9 |
Other financing activities, net | 8.7 | 30.8 |
Net cash provided by (used in) financing activities | 0.3 | -52.1 |
Increase in cash and cash equivalents | 27.1 | 5.6 |
Cash and cash equivalents at beginning of year | 19.7 | 28.1 |
Cash and cash equivalents at end of period | 46.8 | 33.7 |
Reportable legal entities | Guarantor Subsidiaries | ' | ' |
Condensed Consolidating Cash Flow Statement | ' | ' |
Cash provided by (used in) operating activities | -94.5 | -66.5 |
Investing activities: | ' | ' |
Purchases of property, plant and equipment | -23.7 | -21.6 |
Other investing activities, net | -9.2 | 7.3 |
Net cash used in investing activities | -32.9 | -14.3 |
Financing activities: | ' | ' |
Principal payments on long-term debt | -0.4 | ' |
Intercompany borrowings | 119.1 | 81.6 |
Other financing activities, net | ' | -0.7 |
Net cash provided by (used in) financing activities | 118.7 | 80.9 |
Increase in cash and cash equivalents | -8.7 | 0.1 |
Cash and cash equivalents at beginning of year | -0.8 | 13.1 |
Cash and cash equivalents at end of period | -9.5 | 13.2 |
Reportable legal entities | Non-Guarantor Subsidiaries | ' | ' |
Condensed Consolidating Cash Flow Statement | ' | ' |
Cash provided by (used in) operating activities | -1.3 | 25.8 |
Investing activities: | ' | ' |
Purchases of property, plant and equipment | -1.9 | -2.2 |
Net cash used in investing activities | -1.9 | -2.2 |
Financing activities: | ' | ' |
Net short-term debt borrowings | 0.3 | 3.1 |
Intercompany borrowings | 15.5 | -29.4 |
Net cash provided by (used in) financing activities | 15.8 | -26.3 |
Effect of exchange rate changes on cash and cash equivalents | -1 | -0.5 |
Increase in cash and cash equivalents | 11.6 | -3.2 |
Cash and cash equivalents at beginning of year | 64.7 | 56.4 |
Cash and cash equivalents at end of period | 76.3 | 53.2 |
Consolidating Adjustments | ' | ' |
Investing activities: | ' | ' |
Net advances to subsidiaries | 134.6 | 52.2 |
Net cash used in investing activities | 134.6 | 52.2 |
Financing activities: | ' | ' |
Intercompany borrowings | -134.6 | -52.2 |
Net cash provided by (used in) financing activities | ($134.60) | ($52.20) |