Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 21, 2020 | Jun. 30, 2019 | |
Document and Entity Information | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-13122 | ||
Entity Registrant Name | RELIANCE STEEL & ALUMINUM CO | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 95-1142616 | ||
Entity Address, Address Line One | 350 South Grand Avenue, SuiteĀ 5100 | ||
Entity Address, City or Town | Los Angeles | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 90071 | ||
City Area Code | 213 | ||
Local Phone Number | 687-7700 | ||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Trading Symbol | RS | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 6,260,000,000 | ||
Entity Common Stock, Shares Outstanding | 66,860,589 | ||
Entity Central Index Key | 0000861884 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 174.3 | $ 128.2 |
Accounts receivable, less allowance for doubtful accounts of $17.8 at December 31, 2019 and $18.8 at December 31, 2018 | 1,067.8 | 1,242.3 |
Inventories | 1,645.7 | 1,817.1 |
Prepaid expenses and other current assets | 85.2 | 81.5 |
Income taxes receivable | 37.2 | 15.9 |
Total current assets | 3,010.2 | 3,285 |
Property, plant and equipment: | ||
Land | 239.8 | 233.9 |
Buildings | 1,195.1 | 1,158.9 |
Machinery and equipment | 2,044.4 | 1,880.1 |
Accumulated depreciation | (1,684.1) | (1,543) |
Property, plant and equipment, net | 1,795.2 | 1,729.9 |
Operating lease right-of-use assets | 201.5 | |
Goodwill | 2,003.8 | 1,870.8 |
Intangible assets, net | 1,031.1 | 1,072 |
Cash surrender value of life insurance policies, net | 42.7 | 43.6 |
Other assets | 46.6 | 43.6 |
Total assets | 8,131.1 | 8,044.9 |
Current liabilities: | ||
Accounts payable | 275 | 338.8 |
Accrued expenses | 67.4 | 77.4 |
Accrued compensation and retirement costs | 172.1 | 174.8 |
Accrued insurance costs | 43.4 | 42.9 |
Current maturities of long-term debt and short-term borrowings | 64.9 | 65.2 |
Current maturities of operating lease liabilities | 52.5 | |
Total current liabilities | 675.3 | 699.1 |
Long-term debt | 1,523.6 | 2,138.5 |
Operating lease liabilities | 149.5 | |
Long-term retirement costs | 87 | 71.8 |
Other long-term liabilities | 12.3 | 15.9 |
Deferred income taxes | 469.3 | 440.1 |
Commitments and contingencies | ||
Equity: | ||
Preferred stock, $0.001 par value: Authorized shares - 5,000 None issued or outstanding | ||
Common stock and additional paid-in capital, $0.001 par value: Authorized shares - 200,000 Issued and outstanding shares - 66,854 at December 31, 2019 and 66,882 at December 31, 2018 | 122.2 | 136.4 |
Retained earnings | 5,189.5 | 4,637.9 |
Accumulated other comprehensive loss | (105.1) | (102.7) |
Total Reliance stockholders' equity | 5,206.6 | 4,671.6 |
Noncontrolling interests | 7.5 | 7.9 |
Total equity | 5,214.1 | 4,679.5 |
Total liabilities and equity | $ 8,131.1 | $ 8,044.9 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
CONSOLIDATED BALANCE SHEETS | ||
Accounts receivable, allowance for doubtful accounts | $ 17.8 | $ 18.8 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
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) | $ 0.001 | $ 0.001 |
Common stock, Authorized shares | 200,000,000 | 200,000,000 |
Common stock, Issued shares | 66,854,000 | 66,882,000 |
Common stock, outstanding shares | 66,854,000 | 66,882,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF INCOME | |||
Net sales | $ 10,973.8 | $ 11,534.5 | $ 9,721 |
Costs and expenses: | |||
Cost of sales (exclusive of depreciation and amortization shown below) | 7,644.4 | 8,253 | 6,933.2 |
Warehouse, delivery, selling, general and administrative | 2,095.4 | 2,091.8 | 1,902.8 |
Depreciation and amortization | 219.3 | 215.2 | 218.4 |
Impairment of long-lived assets | 1.2 | 37 | 4.2 |
Total costs and expenses | 9,960.3 | 10,597 | 9,058.6 |
Operating income | 1,013.5 | 937.5 | 662.4 |
Other (income) expense: | |||
Interest | 85 | 86.2 | 73.9 |
Other (income) expense, net | (0.8) | 0.7 | 4.7 |
Income before income taxes | 929.3 | 850.6 | 583.8 |
Income tax provision (benefit) | 223.2 | 208.8 | (37.2) |
Net income | 706.1 | 641.8 | 621 |
Less: Net income attributable to noncontrolling interests | 4.6 | 8.1 | 7.6 |
Net income attributable to Reliance | $ 701.5 | $ 633.7 | $ 613.4 |
Earnings per share attributable to Reliance stockholders: | |||
Diluted earnings per common share (in dollars per share) | $ 10.34 | $ 8.75 | $ 8.34 |
Basic earnings per common share (in dollars per share) | $ 10.49 | $ 8.85 | $ 8.42 |
Shares used in computing earning per share: | |||
Diluted (in shares) | 67,855 | 72,441 | 73,539 |
Basic (in shares) | 66,885 | 71,621 | 72,851 |
Cash dividends per share (in dollars per share) | $ 2.20 | $ 2 | $ 1.80 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $ 706.1 | $ 641.8 | $ 621 |
Other comprehensive (loss) income: | |||
Foreign currency translation gain (loss) | 12.4 | (25.7) | 28.8 |
Pension and postretirement benefit adjustments, net of tax | (14.8) | 0.1 | 4.3 |
Total other comprehensive (loss) income | (2.4) | (25.6) | 33.1 |
Comprehensive income | 703.7 | 616.2 | 654.1 |
Less: Comprehensive income attributable to noncontrolling interests | 4.6 | 8.1 | 7.6 |
Comprehensive income attributable to Reliance | $ 699.1 | $ 608.1 | $ 646.5 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Millions | Common Stock and Additional Paid in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Non-controlling Interests | Total |
Balance at Dec. 31, 2016 | $ 590.3 | $ 3,663.2 | $ (104.7) | $ 30.3 | $ 4,179.1 |
Balance (in shares) at Dec. 31, 2016 | 72,683 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 613.4 | 7.6 | 621 | ||
Other comprehensive income (loss) | 33.1 | 33.1 | |||
Dividends to noncontrolling interest holders | (5.1) | (5.1) | |||
Stock-based compensation, net | $ 24.1 | 24.1 | |||
Stock-based compensation, net (in shares) | 165 | ||||
Stock options exercised | $ 5.2 | 5.2 | |||
Stock options exercised (in shares) | 99 | ||||
Repurchase of common shares | $ (25) | $ (25) | |||
Repurchase of common shares (in shares) | (337) | 300 | |||
Cash dividends - $2.20, $2.00 and $1.80 per share for the years ended December 31, 2019, 2018 and 2017, respectively | (132.5) | $ (132.5) | |||
Balance at Dec. 31, 2017 | $ 594.6 | 4,144.1 | (71.6) | 32.8 | 4,699.9 |
Balance (in shares) at Dec. 31, 2017 | 72,610 | ||||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 633.7 | 8.1 | 641.8 | ||
Other comprehensive income (loss) | (25.6) | (25.6) | |||
Reclassification of stranded tax effects resulting from tax reform | 5.5 | (5.5) | |||
Noncontrolling interest purchased | $ (9.3) | (19.7) | (29) | ||
Dividends to noncontrolling interest holders | (13.3) | (13.3) | |||
Stock-based compensation, net | $ 33.2 | 33.2 | |||
Stock-based compensation, net (in shares) | 289 | ||||
Stock options exercised | $ 2.8 | 2.8 | |||
Stock options exercised (in shares) | 48 | ||||
Repurchase of common shares | $ (484.9) | $ (484.9) | |||
Repurchase of common shares (in shares) | (6,065) | 6,100 | |||
Cash dividends - $2.20, $2.00 and $1.80 per share for the years ended December 31, 2019, 2018 and 2017, respectively | (145.4) | $ (145.4) | |||
Balance at Dec. 31, 2018 | $ 136.4 | 4,637.9 | (102.7) | 7.9 | $ 4,679.5 |
Balance (in shares) at Dec. 31, 2018 | 66,882 | 66,882 | |||
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 701.5 | 4.6 | $ 706.1 | ||
Other comprehensive income (loss) | (2.4) | (2.4) | |||
Noncontrolling interest purchased | (0.4) | (0.4) | |||
Dividends to noncontrolling interest holders | (4.6) | (4.6) | |||
Stock-based compensation, net | $ 35 | 35 | |||
Stock-based compensation, net (in shares) | 545 | ||||
Stock options exercised | $ 0.8 | 0.8 | |||
Stock options exercised (in shares) | 20 | ||||
Repurchase of common shares | $ (50) | $ (50) | |||
Repurchase of common shares (in shares) | (593) | 600 | |||
Cash dividends - $2.20, $2.00 and $1.80 per share for the years ended December 31, 2019, 2018 and 2017, respectively | (149.9) | $ (149.9) | |||
Balance at Dec. 31, 2019 | $ 122.2 | $ 5,189.5 | $ (105.1) | $ 7.5 | $ 5,214.1 |
Balance (in shares) at Dec. 31, 2019 | 66,854 | 66,854 |
CONSOLIDATED STATEMENTS OF EQ_2
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 1 Months Ended | 12 Months Ended | ||||||
Feb. 29, 2020 | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 28, 2017 | Jul. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CONSOLIDATED STATEMENTS OF EQUITY | ||||||||
Cash dividends per share (in dollars per share) | $ 0.625 | $ 0.55 | $ 0.50 | $ 0.45 | $ 0.425 | $ 2.20 | $ 2 | $ 1.80 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities: | |||
Net income | $ 706.1 | $ 641.8 | $ 621 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 219.3 | 215.2 | 218.4 |
Impairment of long-lived assets | 1.2 | 37 | 4.2 |
Provision for uncollectible accounts | 3.4 | 7.4 | 6.7 |
Deferred income tax provision (benefit) | 32.5 | (9.1) | (192.6) |
Gain on sales of property, plant and equipment | (1) | (18.8) | (9.5) |
Stock-based compensation expense | 51.2 | 45.5 | 33.4 |
Other | 9.5 | 12.3 | 7.7 |
Changes in operating assets and liabilities (excluding effect of businesses acquired): | |||
Accounts receivable | 178.1 | (153.3) | (126.4) |
Inventories | 211.8 | (88.8) | (186.6) |
Prepaid expenses and other assets | 31.9 | (14) | (11.5) |
Accounts payable and other liabilities | (142.5) | (10.6) | 34.2 |
Net cash provided by operating activities | 1,301.5 | 664.6 | 399 |
Investing activities: | |||
Purchases of property, plant and equipment | (242.2) | (239.9) | (161.6) |
Acquisitions, net of cash acquired | (177.8) | (77.6) | (37.8) |
Proceeds from sales of property, plant and equipment | 8 | 29.2 | 27.6 |
Other | (7.1) | 7.3 | (7.6) |
Net cash used in investing activities | (419.1) | (281) | (179.4) |
Financing activities: | |||
Net short-term debt (repayments) borrowings | (0.3) | (48.4) | 8.4 |
Proceeds from long-term debt borrowings | 971 | 1,518.7 | 875 |
Principal payments on long-term debt | (1,588.6) | (1,192.2) | (915.3) |
Dividends and dividend equivalents paid | (151.3) | (145.3) | (132) |
Share repurchases | (50) | (484.9) | (25) |
Noncontrolling interests purchased | (0.4) | (29) | |
Other | (21) | (22.8) | (9.2) |
Net cash used in financing activities | (840.6) | (403.9) | (198.1) |
Effect of exchange rate changes on cash and cash equivalents | 4.3 | (5.9) | 10.1 |
Increase (decrease) in cash and cash equivalents | 46.1 | (26.2) | 31.6 |
Cash and cash equivalents at beginning of year | 128.2 | 154.4 | 122.8 |
Cash and cash equivalents at end of year | 174.3 | 128.2 | 154.4 |
Supplemental cash flow information: | |||
Interest paid during the year | 83 | 84 | 72.5 |
Income taxes paid during the year, net | $ 214.3 | 228.5 | $ 171.1 |
Non-cash investing and financing activities: | |||
Debt assumed in connection with acquisitions | $ 25.9 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policie s ā Principles of Consolidation ā The accompanying consolidated financial statements include the accounts of Reliance Steel & Aluminum Co. and its subsidiaries (collectively referred to as āRelianceā, āthe Companyā, āweā, āourā or āusā). 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. ā Business ā We operate a metals service center network of more than 300 locations in 40 states in the U.S. and in 13 other countries (Australia, Belgium, Canada, China, France, India, Malaysia, Mexico, Singapore, South Korea, Turkey, the United Arab Emirates and the United Kingdom) that provides value-added metals processing services and distributes a full line of more than 100,000 metal products. Since our inception in 1939, we have not diversified outside our core business as a metals service center operator. ā Accounting Estimates ā The preparation of financial statements in conformity with U.S. generally accepted accounting principles (āGAAPā) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, such as allowances for uncollectible accounts, net realizable values of inventories, fair values and/or impairment of goodwill and other indefinite-lived intangible assets, long-lived assets, the amount of unrecognized tax benefits and other contingencies, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. ā Accounts Receivable and Concentrations of Credit Risk ā Concentrations of credit risk with respect to trade receivables are limited due to the geographically diverse customer base, with limited exposure to any single customer account, and various industries into which our products are sold. Trade receivables are typically non-interest bearing and are initially recorded at cost. Sales to our recurring customers are generally made on open account terms while sales to occasional customers may be made on a collect on delivery basis when collectability is not assured. Past due status of customer accounts is determined based on how recently payments have been received in relation to payment terms granted. Credit is generally extended based upon an evaluation of each customerās financial condition, with terms consistent in the industry and no collateral is required. Losses from credit sales are provided for in the financial statements and consistently have been within the allowance provided. The allowance is an estimate of the amount of accounts receivable that will not be collected from our customers based on an evaluation of specific customer risks along with additional reserves based on historical and probable bad debt experience. Amounts are written-off against the allowance in the period we determine that the receivable is uncollectible. As a result of the above factors, we do not consider ourselves to have any significant concentrations of credit risk. ā Inventories ā The majority of our inventory is valued using the last-in, first-out (āLIFOā) method, which is not in excess of market. Under this method, older costs are included in inventory, which may be higher or lower than current costs. This method of valuation is subject to year-to-year fluctuations in cost of material sold, which is influenced by the inflation or deflation existing within the metals industry as well as fluctuations in our product mix and on-hand inventory levels. ā Fair Values of Financial Instruments ā Fair values of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities, current maturities of operating lease liabilities and long-term debt approximate carrying values due to the short period of time to maturity. Fair values of long-term debt, which have been determined based on borrowing rates currently available to us or to other companies with comparable credit ratings, for loans with similar terms or maturity, approximate the carrying amounts in the consolidated financial statements, with the exception of our publicly traded senior unsecured notes of $750.0 million as of December 31, 2019 and 2018. The fair values of these senior unsecured notes based on quoted market prices were $840.0 million and $780.0 million at December 31, 2019 and 2018, respectively, compared to their carrying values of $745.6 million and $744.8 million, respectively. These estimated fair values are based on Level 2 inputs, including benchmark yields, reported trades and broker/dealer quotes. Fair values are generally based on quoted market prices for identical or similar instruments. ā Cash Equivalents ā We consider all highly liquid instruments with an original maturity of three months or less when purchased to be cash equivalents. We maintain cash and cash equivalents with high credit quality financial institutions. The Company, by policy, limits the amount of credit exposure to any one financial institution. ā Goodwill and Other Indefinite-Lived Intangible Assets ā Goodwill is the excess of purchase price over the fair value of identified assets and liabilities of businesses acquired. Other indefinite-lived intangible assets include amounts allocated to the trade names of businesses acquired. Goodwill and other indefinite-lived intangible assets are not amortized but are tested for impairment at least annually. ā We test for impairment of goodwill and intangible assets deemed to have indefinite lives annually and, between annual tests, whenever significant events or changes occur based on an assessment of qualitative factors to determine if it is more likely than not that the fair value is less than the carrying value. We have one operating segment and one reporting unit for goodwill impairment purposes. We calculate the fair value of the reporting unit using our market capitalization or the discounted cash flow method, as necessary, and compare the fair value to the carrying value of the reporting unit to determine if impairment exists. We perform our annual impairment evaluations of goodwill and other indefinite-lived intangible assets goodwill on November 1 of each year. No impairment of goodwill was determined to exist in any of the years presented. We recognized an impairment loss of $16.5 million related to our other intangible assets with indefinite lives in 2018, respectively. See Note 19 ā āImpairment and Restructuring Chargesā ā Long-Lived Assets ā Property, plant and equipment is recorded at cost (or at fair value for assets acquired in connection with business combinations) and the provision for depreciation of these assets is generally computed on the straight-line method at rates designed to distribute the cost of assets over the useful lives, estimated as follows: buildings, including leasehold improvements, over five to 50 years and machinery and equipment over three to 20 years . ā Intangible assets with finite useful lives are amortized over their useful lives. We periodically review the recoverability of our property, plant and equipment and intangible assets subject to amortization whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. We recognized impairment losses of $1.2 million, $3.8 million and $4.2 million for property, plant and equipment in 2019, 2018 and 2017, respectively, and $16.7 million for intangible assets with finite lives in 2018. See Note 19 ā āImpairment and Restructuring Chargesā ā Revenue Recognition ā We recognize revenue when control of metal products or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. There are no significant judgments or estimates made to determine the amount or timing of our reported revenues. The amount of transaction price associated with unperformed performance obligations is not significant as of December 31, 2019 and 2018. ā Metal Sales ā We have minimal long-term contract sales with our customers as we primarily transact in the spot market under fixed price sales orders. The majority of our metal product sales orders generally have only one performance obligation: sale of processed or unprocessed metal product. Control of the metal products we sell transfers to our customers upon delivery for orders with FOB destination terms or upon shipment for orders with FOB shipping point terms. Shipping and handling charges to our customers are included in net sales. We account for all shipping and handling of our products as fulfillment activities and not as a promised good or service. Costs incurred in connection with the shipping and handling of our products are typically included in operating expenses whether we use a third-party carrier or our own trucks. In 2019, 2018 and 2017, shipping and handling costs included in Warehouse, delivery, selling, general and administrative expenses were $404.1 million, $412.7 million and $372.3 million, respectively. Shipment and delivery of our orders generally occur on the same day due to the close proximity of our customers and our metals service center locations. ā Toll Processing and Logistics ā Toll processing services relate to the processing of customer-owned metal. Logistics services primarily include transportation services for metal we toll-process. Revenue for these services is recognized over time as the toll processing or logistics services are performed. The toll processing services are generally short-term in nature with the service being performed in less than one day . ā Seasonality ā Some of our customers are in seasonal businesses, especially customers in the construction industry and related businesses. However, our overall operations have not shown any material seasonal trends as a result of our geographic, product and customer diversity. Typically, revenues in the months of July, November and December have been lower than in other months because of a reduced number of working days for shipments of our products, resulting from holidays observed by the Company as well as vacation and extended holiday closures at some of our customers. ā Stock-Based Compensation ā All of our stock-based compensation plans are considered equity plans. The fair value of stock awards and restricted stock units is determined based on the fair value of our common stock on the grant date. The fair value of stock awards and restricted stock units is expensed on a straight-line basis over their respective vesting periods, net of forfeitures when they occur. Stock-based compensation expense was $51.2 million, $45.5 million and $33.4 million in 2019, 2018 and 2017, respectively, and is included in the Warehouse, delivery, selling, general and administrative expense caption of our consolidated statements of income. ā Environmental Remediation Costs ā We accrue for losses associated with environmental remediation obligations when such losses are probable and reasonably estimable. Accruals for estimated losses from environmental remediation obligations generally are recognized no later than completion of the remediation feasibility study. Such accruals are adjusted as further information develops or circumstances change. Recoveries of environmental remediation costs from other parties are recorded as assets when their receipt is deemed probable. We are not aware of any environmental remediation obligations that would materially affect our operations, financial position or cash flows. See Note 16 ā āCommitments and Contingenciesā ā Income Taxes ā We file a consolidated U.S. federal income tax return with our wholly owned domestic subsidiaries. Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax reporting bases of assets and liabilities using the enacted tax rates expected to be in effect when such differences are realized or settled. The effect on deferred taxes from a change in tax rates is recognized in income in the period that includes the enactment date of the change. The provision for income taxes reflects the taxes to be paid for the period and the change during the period in the deferred tax assets and liabilities. We evaluate on a quarterly basis whether, based on all available evidence, it is probable that the deferred income tax assets are realizable. Valuation allowances are established when it is estimated that it is more likely than not that the tax benefit of the deferred tax asset will not be realized. ā We make a comprehensive review of our uncertain tax positions on a quarterly basis. Tax benefits are recognized when it is more likely than not that a tax position will be sustained upon examination by the authorities. The benefit from a position that has surpassed the more-likely-than-not threshold is the largest amount of benefit that is more than 50% likely to be realized upon settlement. We recognize interest and penalties accrued related to unrecognized tax benefits as a component of income tax expense. ā On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (āTax Reformā) was enacted, which included significant changes to the taxation of U.S. corporations. These changes include, among other things, a reduction of the U.S. federal statutory rate from 35% to 21% effective in 2018, the implementation of a territorial tax system, a one-time tax in 2017 on accumulated foreign profits that have not been previously subject to U.S. tax law (transition tax), the repeal of the corporate alternative minimum tax and changes to business deductions, including a new limitation on the deductibility of business interest, stricter limits on the deductibility of certain executive compensation and the repeal of the deduction for domestic production activities. For further discussion of the impact of the tax legislation, see Note 11 ā āIncome Taxes.ā ā Foreign Currencies ā The currency effects of translating the financial statements of our foreign subsidiaries, which operate in local currency environments, are included in other comprehensive income (loss). Gains and losses resulting from foreign currency transactions are included in the results of operations in the Other (income) expense, net caption and amounted to net losses of $4.1 million in 2019, net gains of $0.6 million in 2018 and net losses of $4.9 million in 2017. ā Impact of Recently Issued Accounting StandardsāAdopted ā Leases a lease liability using a modified retrospective transition method and provide enhanced disclosures. In July 2018, the FASB issued an update to these accounting changes providing an additional, optional transition method that allows lessees the option to initially apply the new accounting changes at the adoption date while continuing to present all prior periods under previous lease accounting guidance. ā We adopted the new standard on January 1, 2019 using the optional transition method and available practical expedients. The practical expedients allow us, among other things, to carry forward our assessment of lease classification and remaining lease terms under the previous lease accounting guidance. Our adoption of the new lease standard resulted in the recognition of $186.3 million of operating lease right-of-use assets and $187.1 million of operating lease liabilities but did not have a material impact on our consolidated statements of income, equity or cash flows. For further discussion of our leases, see Note 10 ā āLeases.ā ā Impact of Recently Issued Accounting StandardsāNot Yet Adopted ā Income Taxes ā Financial Instruments ā Credit Losses |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2019 | |
Acquisitions | |
Acquisitions | Note 2. Acquisitions ā 2019 Acquisition ā On December 31, 2019, we acquired Fry Steel Company (āFry Steelā). Fry Steel is a general line and long bar distributor located in Santa Fe Springs, California. Fry Steel specializes in the cutting of various bar products including stainless, alloy, aluminum, carbon, brass and bronze. No sales of Fry Steel were included in our net sales for 2019. ā ā The preliminary allocation of the total purchase price for our 2019 acquisition of Fry Steel to the fair values of the assets acquired and liabilities assumed was as follows: ā ā ā ā ā (in millions) Cash $ 17.1 Accounts receivable ā 5.7 Inventories ā 38.8 Property, plant and equipment ā 6.4 Goodwill ā 130.8 Other current and long-term assets ā 0.2 Total assets acquired ā 199.0 Other current and long-term liabilities ā 5.1 Total liabilities assumed ā 5.1 Net assets acquired $ 193.9 ā We funded our acquisition of Fry Steel with borrowings on our revolving credit facility and cash on hand. The purchase price allocation is pending the completion of purchase price adjustments, based on tangible and intangible asset valuations, and the completion of pre-acquisition period tax returns. ā 2018 Acquisitions ā On November 1, 2018, we acquired All Metals Holding, LLC, including its operating subsidiaries All Metals Processing & Logistics, Inc. and All Metals Transportation and Logistics, Inc. (collectively, āAll Metalsā). All Metals is headquartered in Spartanburg, South Carolina with an additional facility in Cartersville, Georgia. All Metals specializes in toll processing for automotive, construction, appliance and other end markets, and provides value-added transportation and logistics services for metal products from six strategically located terminals throughout the southeastern United States. All Metalsā net sales were $29.7 million in 2019. ā On October 23, 2018, we purchased the remaining 40% noncontrolling interest of Acero Prime, S. de R.L. de C.V. (āAcero Primeā), a toll processor in Mexico, which increased our ownership from 60% to 100%. Acero Prime, headquartered in San Luis Potosi, has four toll processing locations. Acero Prime performs metal processing services such as slitting, multi-blanking and oxy-fuel cutting, as well as storage and supply-chain management for a variety of different industries including automotive, home appliance, lighting, HVAC, machinery and heavy equipment. Acero Primeās net sales were $44.8 million in 2019. We have consolidated the financial results of Acero Prime since October 1, 2014 when we acquired a majority interest. Consequently, the increase in our ownership from 60% to 100% was accounted for as an equity transaction. ā On August 1, 2018, we acquired KMS Fab, LLC and KMS South, Inc. (collectively, āKMSā or the āKMS Companiesā). The KMS Companies are headquartered in Luzerne, Pennsylvania. The KMS Companies specialize in precision sheet metal fabrication ranging from prototypes to large production runs which utilize a wide variety of metals and fabrication methods including laser cutting, stamping, turret punching, machining, powder coating and welding. KMSā net sales were $32.6 million in 2019. ā On March 1, 2018, we acquired DuBose National Energy Services, Inc. (āDuBose Energyā) and its affiliate, DuBose National Energy Fasteners & Machined Parts, Inc. (āDuBose Fastenersā and, together with DuBose Energy, āDuBoseā). DuBose is headquartered in Clinton, North Carolina. DuBose specializes in fabrication, supply and distribution of metal and metal products to the nuclear industry, including utilities, component manufacturers and contractors. DuBoseās net sales were $42.9 million in 2019. ā We funded our 2018 acquisitions with borrowings on our revolving credit facility and cash on hand. ā The allocation of the total purchase price for our 2018 acquisitions to the fair values of the assets acquired and liabilities assumed was as follows: ā ā ā ā ā (in millions) Cash $ 2.4 Accounts receivable ā 13.1 Inventories ā 10.0 Property, plant and equipment ā 20.1 Goodwill ā 32.9 Intangible assets subject to amortization ā 25.0 Intangible assets not subject to amortization ā 18.3 Other current and long-term assets ā 1.1 Total assets acquired ā 122.9 Current and long-term debt ā 25.9 Deferred taxes ā 5.4 Other current and long-term liabilities ā 9.6 Total liabilities assumed ā 40.9 Net assets acquired $ 82.0 ā 2017 Acquisition ā On October 2, 2017, through our wholly owned subsidiary Diamond Manufacturing Company, we acquired Ferguson Perforating Company (āFergusonā). Ferguson, headquartered in Providence, Rhode Island, specializes in manufacturing highly engineered and complex perforated metal parts that have application in diverse end markets including industrial machinery, automotive, aerospace, sugar products and consumer electronics manufacturers. Fergusonās net sales were $37.2 million in 2019. ā We funded our acquisition of Ferguson with borrowings on our revolving credit facility and cash on hand. ā Summary purchase price allocation information for all acquisitions ā All of the acquisitions discussed in this note other than Acero Prime have been accounted for under the acquisition method of accounting and, accordingly, each purchase price has been allocated to the assets acquired and liabilities assumed based on the 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 allocations of each acquisitionās purchase price as of December 31, 2019 or 2018, as applicable. The measurement periods for purchase price allocations do not exceed 12 months from the acquisition date. ā The increase in our ownership of Acero Prime from 60% to 100% in 2018 was accounted for as an equity transaction. The difference between the $29.0 million consideration paid and the $19.7 million noncontrolling interest, or $9.3 million, was recognized as a decrease in total Reliance stockholdersā equity. ā As part of the purchase price allocations for the acquisitions completed in 2018 and 2017, $18.3 million and $3.7 million, respectively, were allocated to the trade names acquired. We determined that all of the trade names acquired in connection with these acquisitions had indefinite lives since their economic lives are expected to approximate the life of each company acquired. Additionally, we recorded other identifiable intangible assets related to customer relationships for the 2018 and 2017 acquisitions of $24.8 million and $3.7 million, respectively, with weighted average lives of 10.0 years. The goodwill arising from our 2019, 2018 and 2017 acquisitions consists largely of expected strategic benefits, including enhanced financial and operational scale, as well as expansion of acquired product and processing know-how across our enterprise. The preliminary tax deductible goodwill from our 2019 acquisition amounted to $131.0 million. Total tax deductible goodwill amounted to $817.4 million as of December 31, 2019. |
Joint Ventures and Noncontrolli
Joint Ventures and Noncontrolling Interests | 12 Months Ended |
Dec. 31, 2019 | |
Joint Ventures and Noncontrolling Interests | |
Joint Ventures and Noncontrolling Interests | Note 3. Joint Ventures and Noncontrolling Interests ā The equity method of accounting is used where our investment in voting stock gives us the ability to exercise significant influence over the investee, generally 20% to 50%. The financial results of investees are generally consolidated when the ownership interest is greater than 50%. ā We have a joint venture arrangement with a noncontrolling interest in Oregon Feralloy Partners LLC (40%-owned) that is accounted for using the equity method. During 2019, we terminated our joint venture arrangement with, and sold our 45% ownership interest in, Eagle Steel Products, Inc. and recognized an insignificant gain. Investments in entities for which we hold a noncontrolling interest are reflected in the Other assets caption of the consolidated balance sheets. Equity in earnings of these entities and related distribution of earnings has not been material to our results of operations or cash flows. ā Operations that are majority owned by us are as follows: Feralloy Processing Company (51%-owned), Indiana Pickling and Processing Company (56%-owned), and Valex Corp.ās operations in South Korea, in which Valex Corp. has a 96% ownership. The results of these majority-owned operations are consolidated in our financial results. The portion of the earnings related to the noncontrolling shareholder interests has been reflected in the Net income attributable to noncontrolling interests caption in the accompanying consolidated statements of income. ā On October 23, 2018, we purchased the noncontrolling interest of Acero Prime, S. de R.L. de C.V., which increased our ownership from 60% to 100%. See Note 2 ā āAcquisitionsā ā |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventories | |
Inventories | Note 4. Inventories ā Our inventories are primarily stated on the LIFO method, which is not in excess of market. We use the LIFO method of inventory valuation because it results in a better matching of costs and revenues. The cost of inventories stated on the first-in, first-out (āFIFOā) method is not in excess of net realizable value. ā Inventories consisted of the following: ā ā ā ā ā ā ā ā December 31, ā December 31, ā 2019 2018 ā (in millions) LIFO inventories - cost on FIFO method $ 1,387.7 ā $ 1,737.3 Cost on FIFO method higher than LIFO value ā (137.6) ā ā (293.6) Inventories - stated on LIFO method ā 1,250.1 ā ā 1,443.7 Inventories - stated on FIFO method ā 395.6 ā ā 373.4 ā $ 1,645.7 ā $ 1,817.1 ā The changes in the LIFO inventory valuation reserve and impact of LIFO liquidations were as follows: ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 ā 2018 ā 2017 ā (in millions) LIFO inventory valuation reserve adjustment (income) charge $ (156.0) ā $ 271.8 ā $ 73.3 Liquidation of LIFO inventory quantities that decreased cost of sales ā (11.6) ā ā ** ā ā ** ** Insignificant liquidations of LIFO inventory quantities. ā Cost decreases for the majority of our products were the primary cause of the 2019 LIFO inventory valuation reserve adjustment income. Cost increases for the majority of our products were the primary cause of the 2018 and 2017 LIFO inventory valuation reserve adjustment charges. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Revenue | |
Revenues | ā Note 5. Revenues ā The following table presents our sales disaggregated by product and service. Certain sales taxes or value-added taxes collected from customers are excluded from our reported sales. ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 ā 2018 ā 2017 ā (in millions) Carbon steel $ 5,792.9 ā $ 6,285.8 ā $ 5,189.6 Aluminum ā 2,151.9 ā ā 2,210.9 ā ā 1,916.9 Stainless steel ā 1,578.0 ā ā 1,636.1 ā ā 1,386.3 Alloy ā 652.1 ā ā 680.7 ā ā 587.8 Toll processing and logistics ā 450.7 ā ā 415.3 ā ā 362.1 Other and eliminations ā 348.2 ā ā 305.7 ā ā 278.3 Total $ 10,973.8 ā $ 11,534.5 ā $ 9,721.0 ā |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill. | |
Goodwill | Note 6. Goodwill ā The changes in the carrying amount of goodwill are as follows: ā ā ā ā ā (in millions) ā ā ā Balance at January 1, 2017 $ 1,827.4 Acquisitions ā 10.3 Effect of foreign currency translation ā 4.9 Balance at December 31, 2017 ā 1,842.6 Acquisitions ā 33.8 Effect of foreign currency translation ā (5.6) Balance at December 31, 2018 ā 1,870.8 Acquisitions ā 131.8 Purchase price allocation adjustments ā (1.9) Effect of foreign currency translation ā 3.1 Balance at December 31, 2019 $ 2,003.8 ā The preliminary tax deductible goodwill from our 2019 acquisition is $131.0 million. ā We had no accumulated impairment losses related to goodwill at December 31, 2019. |
Intangible Assets, net
Intangible Assets, net | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets, net | |
Intangible Assets, net | Note 7. Intangible Assets, net ā Intangible assets, net, consisted of the following: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2019 ā December 31, 2018 ā Weighted Average ā Gross ā ā ā ā Gross ā ā ā ā Amortizable ā Carrying ā Accumulated ā Carrying ā Accumulated ā Life in Years Amount Amortization Amount Amortization ā ā ā (in millions) Intangible assets subject to amortization: ā ā ā ā ā ā ā ā ā ā ā ā ā Covenants not to compete 5.0 ā $ 0.7 ā $ (0.4) ā $ 0.8 ā $ (0.4) Customer lists/relationships 15.0 ā ā 710.1 ā ā (438.1) ā ā 707.3 ā ā (393.4) Software 10.0 ā ā 8.1 ā ā (8.1) ā ā 8.1 ā ā (8.1) Other 7.6 ā ā 1.1 ā ā (0.9) ā ā 1.0 ā ā (0.9) ā ā ā ā 720.0 ā ā (447.5) ā ā 717.2 ā ā (402.8) Intangible assets not subject to amortization: ā ā ā ā ā ā ā ā ā ā ā ā ā Trade names ā ā ā 758.6 ā ā ā ā ā 757.6 ā ā ā ā ā ā $ 1,478.6 ā $ (447.5) ā $ 1,474.8 ā $ (402.8) ā During 2018, we recognized impairment losses of $16.5 million and $16.7 million on our trade name and customer relationship intangible assets, respectively, related to one of our energy businesses. See Note 19 ā āImpairment and Restructuring Chargesā ā Amortization expense for intangible assets amounted to $43.1 million, $45.8 million and $50.6 million in 2019, 2018 and 2017, respectively. Foreign currency translation gains related to intangible assets, net in 2019 were $2.2 million. ā The following is a summary of estimated aggregate amortization expense for each of the next five years: ā ā ā ā ā (in millions) 2020 $ 43.2 2021 ā 41.5 2022 ā 36.7 2023 ā 30.7 2024 ā 27.2 ā |
Cash Surrender Value of Life In
Cash Surrender Value of Life Insurance Policies, net | 12 Months Ended |
Dec. 31, 2019 | |
Cash Surrender Value of Life Insurance Policies, net | |
Cash Surrender Value of Life Insurance Policies, net | Note 8. Cash Surrender Value of Life Insurance Policies, net ā The cash surrender value of all life insurance policies held by us, net of loans and related accrued interest, was $42.7 million and $43.6 million as of December 31, 2019 and 2018, respectively. ā Our wholly owned subsidiary, Earle M. Jorgensen Company (āEMJā), is the owner and beneficiary of life insurance policies on all former nonunion employees of a predecessor company, including certain current employees of EMJ. These policies, by providing payments to EMJ upon the death of covered individuals, were designed to provide cash to EMJ in order to repurchase shares held by employees in EMJās former employee stock ownership plan and shares held individually by employees upon the termination of their employment. We are also the owner and beneficiary of key person life insurance policies on certain current and former executives of the Company, its subsidiaries and predecessor companies. ā Cash surrender value of the life insurance policies increases by a portion of the amount of premiums paid and by investment income earned under the policies and decreases by the amount of cost of insurance charges, investment losses and interest on policy loans, as applicable. ā Annually, we borrow against the cash surrender value of policies to pay a portion of the premiums and accrued interest on loans against those policies. We borrowed $56.0 million, $56.1 million and $49.9 million against the cash surrender value of certain policies, which was used to partially pay premiums and accrued interest owed of $71.7 million, $70.8 million and $64.0 million in 2019, 2018 and 2017, respectively. Interest rates on borrowings under some of the EMJ life insurance policies are fixed at 11.76% and the portion of the policy cash surrender value that the borrowings relate to earns interest and dividend income at 11.26%. The unborrowed portion of the policy cash surrender value earns income at rates commensurate with certain risk-free U.S. Treasury bond yields but not less than 4.0%. All other life insurance policies earn investment income or incur losses based on the performance of the underlying investments held by the policies. ā As of December 31, 2019 and 2018, loans and accrued interest outstanding on EMJās life insurance policies were $684.0 million and $636.8 million, respectively. ā Income earned on our life insurance policies, cost of insurance charges and interest expense on borrowings against cash surrender values are included in the Other expense, net caption in the accompanying consolidated statements of income (see Note 15 ā āOther (Income) Expense, netā |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt | |
Debt | Note 9. Debt ā Debt consisted of the following: ā ā ā ā ā ā ā ā December 31, ā December 31, ā 2019 2018 ā (in millions) Unsecured revolving credit facility due September 30, 2021 $ 368.0 ā $ 925.0 Unsecured term loan due from March 31, 2020 to September 30, 2021 ā 465.0 ā ā 525.0 Senior unsecured notes due April 15, 2023 ā 500.0 ā ā 500.0 Senior unsecured notes due November 15, 2036 ā 250.0 ā ā 250.0 Other notes and revolving credit facilities ā 13.3 ā ā 14.2 Total ā 1,596.3 ā ā 2,214.2 Less: unamortized discount and debt issuance costs ā (7.8) ā ā (10.5) Less: amounts due within one year and short-term borrowings ā (64.9) ā ā (65.2) Total long-term debt $ 1,523.6 ā $ 2,138.5 ā Unsecured Credit Facility ā On September 30, 2016, we entered into a $2.1 billion unsecured five-year credit agreement (āCredit Agreementā) comprised of a $1.5 billion unsecured revolving credit facility and a $600.0 million unsecured term loan, with an option to increase the revolving credit facility up to an additional $500.0 million at our request, subject to approval of the lenders and certain other customary conditions. The term loan due September 30, 2021 amortizes in quarterly installments, with an annual amortization of 10% until June 2021, with the balance to be paid at maturity. Interest on borrowings under the Credit Agreement at December 31, 2019 was at variable rates based on LIBOR plus 1.00% or the bank prime rate and we pay a commitment fee at an annual rate of 0.125% on the unused portion of the revolving credit facility. During the third quarter of 2019, applicable margins were lowered by 25 basis points and our commitment fees were reduced per the terms of the Credit Agreement as a result of a decrease in our calculated leverage ratio. The applicable margins over LIBOR and base rate borrowings, along with commitment fees, are subject to adjustment every quarter based on our leverage ratio, as defined in the Credit Agreement. All borrowings under the Credit Agreement may be prepaid without penalty. ā Weighted average interest rates on borrowings outstanding on the revolving credit facility were 3.69% and 3.86% as of December 31, 2019 and December 31, 2018, respectively. Weighted average interest rates on borrowings outstanding on the term loan were 2.80% and 3.77% as of December 31, 2019 and December 31, 2018, respectively. As of December 31, 2019, we had $368.0 million of outstanding borrowings, $37.5 million of letters of credit issued and $1.09 billion available for borrowing on the revolving credit facility. ā Senior Unsecured Notes ā On November 20, 2006, we entered into an indenture (the ā2006 Indentureā) 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, which matured and were repaid 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. ā On April 12, 2013, we entered into an indenture (the ā2013 Indentureā and, together with the 2006 Indenture, the āIndenturesā) 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. ā 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. If we experience a change in control accompanied by a downgrade in our credit rating, we will be required to make an offer to repurchase the notes at a price equal to 101% of their principal amount plus accrued and unpaid interest. ā Other Notes and Revolving Credit Facilities ā Revolving credit facilities with a combined credit limit of approximately $9.9 million are in place for operations in Asia with combined outstanding balances of $4.3 million and $4.7 million as of December 31, 2019 and December 31, 2018, respectively. ā Various industrial revenue bonds had combined outstanding balances of $9.0 million and $9.5 million as of December 31, 2019 and December 31, 2018, respectively, and have maturities through 2027. ā Covenants ā The Credit Agreement and the Indentures include customary representations, warranties, covenants and events of default provisions. The covenants under the Credit Agreement include, among other things, two financial maintenance covenants that require us to comply with a minimum interest coverage ratio and a maximum leverage ratio. We were in compliance with all financial covenants in our Credit Agreement at December 31, 2019. ā Debt Maturities ā The following is a summary of aggregate maturities of long-term debt for each of the next five years and thereafter: ā ā ā ā ā (in millions) 2020 $ 64.9 2021 ā 773.7 2022 ā 0.3 2023 ā 506.0 2024 ā 0.3 Thereafter ā 251.1 ā $ 1,596.3 ā |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Leases | Note 10. Leases ā Our metals service center leases are comprised of processing and distribution facilities, equipment, trucks and trailers, ground leases and other leased spaces, such as depots, sales offices, storage and data centers. We also lease various office buildings, including our corporate headquarters in Los Angeles, California. Our leases of facilities and other spaces expire at various times through 2031 and our ground leases expire at various times through 2068. Nearly all of our leases are operating leases. Information regarding the insignificant amount of finance leases we have is not meaningful to an understanding of our lease obligations. ā The following is a summary of our lease cost: ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 ā (in millions) Operating lease cost $ 84.4 ā $ 82.7 ā $ 77.9 ā Our operating lease costs include payments to various related parties that are not executive officers of the Company, in the amounts of $2.5 million, $4.1 million and $3.4 million in 2019, 2018 and 2017, respectively. These related party leases are for buildings leased to certain of the companies we have acquired and expire in various years through 2023. ā Supplemental cash flow and balance sheet information is presented below: ā ā ā ā ā Year Ended ā December 31, 2019 ā (in millions) Supplemental cash flow information ā ā Cash payments for operating leases $ 84.6 Right-of-use assets obtained in exchange for operating lease obligations ā 71.1 ā ā ā ā December 31, ā 2019 Other lease information ā ā Weighted average remaining lease termāoperating leases ā 5.6 years Weighted average discount rateāoperating leases ā 4.3% ā ā Maturities of operating lease liabilities as of December 31, 2019 are as follows: ā ā ā ā ā (in millions) 2020 $ 59.6 2021 ā 47.8 2022 ā 35.9 2023 ā 27.5 2024 ā 20.7 Thereafter ā 39.6 Total operating lease payments ā 231.1 Less: imputed interest ā (29.1) Total operating lease liabilities $ 202.0 ā ā As previously presented in our consolidated financial statements for the year ended December 31, 2018, included in our Annual Report on Form 10-K, future minimum payments under previous lease accounting guidance for non-cancelable operating leases were as follows: ā ā ā ā ā (in millions) 2019 $ 59.5 2020 ā 45.5 2021 ā 32.9 2022 ā 22.7 2023 ā 16.2 Thereafter ā 40.7 Total operating lease payments $ 217.5 ā |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Income Taxes | ā ā Note 11. Income Taxes ā Reliance and its subsidiaries file numerous consolidated and separate income tax returns in the United States federal jurisdiction and in many state and foreign jurisdictions. We are no longer subject to U.S. federal tax examinations for years before 2016 and state and local tax examinations before 2015. Significant components of the provision for income taxes attributable to continuing operations were as follows: ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 ā (in millions) Current: ā ā ā ā ā ā ā ā Federal $ 136.3 ā $ 150.6 ā $ 117.8 State ā 37.9 ā ā 47.6 ā ā 21.5 Foreign ā 16.5 ā ā 19.7 ā ā 16.1 ā ā 190.7 ā ā 217.9 ā ā 155.4 Deferred: ā ā ā ā ā ā ā ā Federal ā 26.9 ā ā (6.0) ā ā (202.8) State ā 7.2 ā ā (2.3) ā ā 11.1 Foreign ā (1.6) ā ā (0.8) ā ā (0.9) ā ā 32.5 ā ā (9.1) ā ā (192.6) ā $ 223.2 ā $ 208.8 ā $ (37.2) ā Components of U.S. and international income before income taxes were as follows: ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 ā (in millions) ā ā ā ā ā ā ā ā ā U.S. $ 877.4 ā $ 775.2 ā $ 524.6 International ā 51.9 ā ā 75.4 ā ā 59.2 Income before income taxes $ 929.3 ā $ 850.6 ā $ 583.8 ā The reconciliation of income tax at the U.S. federal statutory tax rate to income tax expense is as follows: ā ā ā ā ā ā ā ā ā Year Ended December 31, ā ā 2019 2018 2017 ā Income tax at U.S. federal statutory tax rate 21.0 % 21.0 % 35.0 % Tax Reform ā ā 0.4 ā (35.5) ā State income tax, net of federal tax effect 3.6 ā 3.6 ā 3.8 ā Foreign earnings taxed at higher (lower) rates 0.4 ā 0.4 ā (0.7) ā Net effect of life insurance policies (1.5) ā (1.5) ā (3.6) ā Net effect of changes in unrecognized tax benefits ā ā (0.2) ā (0.2) ā Stock-based compensation 0.7 ā 0.6 ā (0.2) ā Domestic production activity deduction ā ā ā ā (1.6) ā Loss on sale of assets ā ā ā ā (0.8) ā Other, net (0.2) ā 0.2 ā (2.6) ā Effective tax rate 24.0 % 24.5 % (6.4) % ā ā Significant components of our deferred tax assets and liabilities are as follows: ā ā ā ā ā ā ā ā December 31, ā 2019 2018 ā (in millions) Deferred tax assets: ā ā ā ā ā Accrued expenses not currently deductible for tax $ 31.6 ā $ 26.0 Inventory costs capitalized for tax purposes ā 13.1 ā ā 27.1 Stock-based compensation ā 8.2 ā ā 7.2 Allowance for doubtful accounts ā 4.9 ā ā 5.4 Tax credits carryforwards ā 1.4 ā ā 1.0 Net operating loss carryforwards ā 4.2 ā ā 6.0 Total deferred tax assets ā 63.4 ā ā 72.7 Deferred tax liabilities: ā ā ā ā ā Property, plant and equipment, net ā (189.1) ā ā (175.4) Goodwill and other intangible assets ā (311.6) ā ā (308.8) LIFO inventories ā (23.2) ā ā (21.1) Other ā (8.8) ā ā (7.5) Total deferred tax liabilities ā (532.7) ā ā (512.8) Net deferred tax liabilities $ (469.3) ā $ (440.1) ā As of December 31, 2019, we had available state net operating loss carryforwards (āNOLā) of $4.1 million to offset future income taxes expiring in years 2020 through 2039. We believe that it is more likely than not that we will be able to realize these NOLs within their respective carryforward periods. ā The Company believes it is more likely than not that it will generate sufficient future taxable income to realize its deferred tax assets. ā Tax Cuts and Jobs Act of 2017 ā On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (āTax Reformā) was enacted, which included significant changes to the taxation of U.S. corporations. These changes include, among other things, a reduction of the U.S. federal statutory rate from 35% to 21% effective in 2018, the implementation of a territorial tax system, a one-time tax in 2017 on accumulated foreign profits that have not been previously subject to U.S. tax (transition tax), the repeal of the corporate alternative minimum tax and changes to business deductions, including a new limitation on the deductibility of business interest, stricter limits on the deductibility of certain executive compensation and the repeal of the deduction for domestic production activities. ā We recognized a $207.3 million provisional net tax benefit in 2017 relating to the estimated impact of Tax Reform. Included in the provisional amount was $216.7 million tax benefit due to the effect of the U.S. federal statutory rate change on deferred tax assets and liabilities, partially offset by $9.4 million of one-time transition taxes. We finalized our assessment of the impact of Tax Reform in 2018 and reduced the net tax benefit recorded by $3.2 million. ā Unrecognized Tax Benefits ā We are under U.S. federal tax audit for 2017 and we are under audit by various state jurisdictions for years 2014 through 2018, but do not anticipate any material adjustments from these examinations. Reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows: ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 ā (in millions) Unrecognized tax benefits at January 1 $ 2.4 ā $ 4.1 ā $ 5.2 Increases in tax positions for prior years ā 0.8 ā ā 0.4 ā ā ā Decreases in tax positions for prior years ā ā ā ā ā ā ā (0.1) Settlements ā (0.7) ā ā ā ā ā (0.2) Lapse of statute of limitations ā (0.3) ā ā (2.1) ā ā (0.8) Unrecognized tax benefits at December 31 $ 2.2 ā $ 2.4 ā $ 4.1 ā As of December 31, 2019, $2.2 million of unrecognized tax benefits would impact the effective tax rate if recognized. Accrued interest and penalties, net of applicable tax effect, related to uncertain tax positions were $0.5 million as of December 31, 2019 and 2018. Although the timing, settlement or closure of audits is not certain, we do not anticipate our unrecognized tax benefits will increase or decrease significantly over the next twelve months. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation Plans | |
Stock-Based Compensation Plans | Note 12. Stock-Based Compensation Plans ā We grant stock-based compensation to our employees and directors. At December 31, 2019, an aggregate of 1,125,344 shares were authorized for future grant under our various stock-based compensation plans, including stock options, restricted stock units and stock awards. Awards that expire or are canceled without delivery of shares generally become available for issuance under the plans. As stock options are exercised and restricted stock units vest, we issue new shares of Reliance common stock. ā ā Stock Options ā Stock option activity under all the plans is as follows: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted Average ā ā ā ā ā ā ā ā ā Remaining ā Aggregate ā ā Option ā Weighted Average ā Contractual Term ā Intrinsic Value Stock Options Shares Exercise Price (in years) (in millions) Outstanding at January 1, 2017 ā 180,680 ā $ 52.61 ā ā ā ā ā Exercised ā (98,405) ā ā 52.41 ā ā ā ā ā Expired or forfeited ā (7,000) ā ā 58.68 ā ā ā ā ā Outstanding at December 31, 2017 ā 75,275 ā ā 52.30 ā ā ā ā ā Exercised ā (48,275) ā ā 57.91 ā ā ā ā ā Expired or forfeited ā (1,000) ā ā 55.73 ā ā ā ā ā Outstanding at December 31, 2018 ā 26,000 ā ā 41.76 ā ā ā ā ā Exercised ā (20,000) ā ā 40.80 ā ā ā ā ā Outstanding at December 31, 2019 ā 6,000 ā $ 44.99 ā 0.4 ā $ 0.4 Exercisable at December 31, 2019 ā 6,000 ā $ 44.99 ā 0.4 ā $ 0.4 ā All stock options outstanding at December 31, 2019 were granted to our non-employee directors and had one-year vesting periods and ten-year terms. ā There were no unvested stock options at December 31, 2019 and 2018. ā Proceeds from stock options exercised under all stock option plans in 2019, 2018 and 2017 were $0.8 million, $2.8 million and $5.2 million, respectively. The total intrinsic values of all options exercised in 2019, 2018 and 2017 were $1.0 million, $1.6 million and $2.8 million, respectively. ā The following tabulation summarizes certain information concerning outstanding and exercisable options as of December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted Average ā ā ā ā ā Outstanding and ā Remaining ā Weighted Average Range of ā Exercisable at ā Contractual Term ā Exercise Price Exercise Price December 31, 2019 (in years) Per Share $44 - $45 ā 6,000 ā 0.4 ā $ 44.99 ā ā ā ā ā ā ā ā ā Restricted Stock ā In 2019, 2018 and 2017, we granted 488,345 , 474,715 and 446,525 , respectively, restricted stock units (āRSUsā) 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. Additionally, each 2019, 2018 and 2017 RSU granted has a service-based condition and cliff vests at December 1, 2021, December 1, 2020 and December 1, 2019, respectively, if the recipient is an employee on those dates. In addition to a service-based condition, 194,155 , 178,970 and 169,009 of the RSUs granted in 2019, 2018 and 2017, respectively, also have performance goals and vest only upon the satisfaction of the service-based condition and certain performance targets for the three-year periods ending December 31, 2021, December 31, 2020 and December 31, 2019, respectively. The fair value of the 2019, 2018 and 2017 RSUs granted was $88.05 per share, $84.26 per share and $79.60 per share, respectively, determined based on the closing price of our common stock on the grant date. ā In 2019, 2018 and 2017, 11,640, 13,880 and 18,120 stock awards, respectively, were granted to the non-employee members of the Board of Directors pursuant to the Directors Equity Plan. The fair value of the stock awards granted in 2019, 2018 and 2017, was $89.34 per share, $93.65 per share and $71.73 per share, respectively, determined based on the closing price of our common stock on the grant date. The awards include dividend rights and vest immediately upon grant. ā In 2019, 2018 and 2017, we made payments of $16.2 million, $12.3 million and $9.3 million, respectively, to tax authorities on our employeesā behalf for shares withheld related to net share settlements. These payments are reflected in the Stock-based compensation, net caption of the consolidated statements of equity. ā A summary of the status of our unvested service-based and performance-based RSUs as of December 31, 2019 and changes during the year then ended is as follows: ā ā ā ā ā ā ā ā ā ā ā Weighted ā ā ā ā Average ā ā ā ā Grant Date ā ā ā ā Fair Value Unvested RSUs ā Shares Per RSU Unvested at January 1, 2019 ā 889,830 ā $ 82.05 Granted ā 488,345 ā ā 88.05 Vested ā (476,634) ā ā 80.18 Canceled or forfeited ā (42,536) ā ā 83.97 Unvested at December 31, 2019 ā 859,005 ā $ 86.40 ā The total fair value of RSUs vested during 2019, 2018 and 2017 was $56.5 million, $34.6 million and $40.1 million, respectively. ā Unrecognized Compensation Cost and Tax Benefits ā As of December 31, 2019, there was $52.9 million of total unrecognized compensation cost related to unvested stock-based compensation awards granted under all stock-based compensation plans. That cost is expected to be recognized over a weighted average period of 1.4 years. ā The tax benefit realized from our stock-based compensation plans in 2019, 2018 and 2017 was $5.5 million, $4.9 million and $8.4 million, respectively. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefits | |
Employee Benefits | Note 13. Employee Benefits ā Employee Stock Ownership Plan ā We have a tax-qualified employee stock ownership plan (the āESOPā) that is a noncontributory plan that covers certain salaried and hourly employees of the Company. The amount of the annual contribution is at the discretion of the Board, except that the minimum amount must be sufficient to enable the ESOP trust to meet its current obligations. The Company ceased making annual contributions to the ESOP after the 2018 plan year. ā Defined Contribution Plans ā Effective in 1998, the Reliance Steel & Aluminum Co. Master 401(k) Plan (the āMaster Planā) was established, which combined several of the various 401(k) and profit-sharing plans of the Company and its subsidiaries into one plan. Salaried and certain hourly employees of the Company and its participating subsidiaries are covered under the Master Plan. Eligibility occurs after three months of service and the Company contribution vests at 25% per year. Other 401(k) and profit-sharing plans exist as certain subsidiaries have not merged their plans into the Master Plan as of December 31, 2019. ā Supplemental Executive Retirement Plans ā Effective January 1996, we adopted a Supplemental Executive Retirement Plan (āReliance SERPā), which is a nonqualified pension plan that provides postretirement pension benefits to certain key officers of the Company. The Reliance SERP is administered by the Compensation Committee of the Board. Benefits are based upon the employeesā earnings. Life insurance policies were purchased for most individuals covered by the Reliance SERP. Separate supplemental executive retirement plans exist for certain wholly owned subsidiaries of the Company (together with the Reliance SERP, the āSERPsā), each of which provides postretirement pension benefits to certain former key employees. All SERPs have been frozen to new participants. ā Deferred Compensation Plan ā In December 2008, the Reliance Deferred Compensation Plan was established for certain officers and key employees of the Company. Account balances from various compensation plans of subsidiaries were transferred and consolidated into this new deferred compensation plan. The balance in the Reliance Deferred Compensation Plan as of December 31, 2019 and 2018 was $31.4 million and $21.8 million, respectively. The balance of the assets set aside for funding future payouts under the deferred compensation plan amounted to $26.5 million and $21.1 million as of December 31, 2019 and 2018, respectively. ā Multiemployer Plans ā Certain of our union employees participate in plans collectively bargained and maintained by multiple employers and a labor union. We do not recognize on our balance sheet any amounts relating to these plans. For 2019, 2018 and 2017 our contributions to these plans were $5.7 million, $5.4 million and $5.4 million, respectively. Some of the plans we participate in are in endangered, or critical and declining status and have adopted rehabilitation plans. If we were to withdraw our participation from these plans, we would be required to recognize a liability on our balance sheet and the amount could be significant. ā Defined Benefit Plans ā We, through certain subsidiaries, maintain qualified defined benefit pension plans for certain of our union employees (the āDefined Benefit Plansā). These plans generally provide benefits of stated amounts for each year of service or provide benefits based on the participant's hourly wage rate and years of service. The plans permit the sponsor, at any time, to amend or terminate the plans subject to union approval, if applicable. Certain of these plans were frozen in previous years. ā ā We use a December 31 measurement date for our plans. The following is a summary of the status of the funding of the SERPs and Defined Benefit Plans: ā ā ā ā ā ā ā ā ā ā ā ā ā ā SERPs ā Defined Benefit Plans ā 2019 2018 2019 2018 ā (in millions) ā (in millions) Change in benefit obligation ā ā ā ā ā ā ā ā ā ā ā Benefit obligation at beginning of year $ 37.2 ā $ 36.6 ā $ 96.6 ā $ 103.5 Service cost ā 0.9 ā ā 0.9 ā ā 1.6 ā ā 1.7 Interest cost ā 1.4 ā ā 1.1 ā ā 3.8 ā ā 3.5 Actuarial loss (gain) ā 11.4 ā ā (0.3) ā ā 15.9 ā ā (9.3) Benefits paid ā (1.1) ā ā (1.1) ā ā (3.9) ā ā (3.8) Plan amendments ā ā ā ā ā ā ā 2.2 ā ā 1.0 Benefit obligation at end of year $ 49.8 ā $ 37.2 ā $ 116.2 ā $ 96.6 ā ā ā ā ā ā ā ā ā ā ā ā Change in plan assets ā ā ā ā ā ā ā ā ā ā ā Fair value of plan assets at beginning of year ā N/A ā ā N/A ā $ 94.9 ā $ 89.0 Actual return on plan assets ā N/A ā ā N/A ā ā 16.1 ā ā (4.2) Employer contributions ā N/A ā ā N/A ā ā ā ā ā 13.9 Benefits paid ā N/A ā ā N/A ā ā (3.9) ā ā (3.8) Fair value of plan assets at end of year ā N/A ā ā N/A ā $ 107.1 ā $ 94.9 ā ā ā ā ā ā ā ā ā ā ā ā Funded status ā ā ā ā ā ā ā ā ā ā ā Funded status of the plans $ (49.8) ā $ (37.2) ā $ (9.1) ā $ (1.7) ā ā ā ā ā ā ā ā ā ā ā ā Items not yet recognized as component of net periodic pension expense ā ā ā ā ā ā ā ā ā ā ā Unrecognized net actuarial losses $ 19.6 ā $ 9.1 ā $ 27.2 ā $ 23.2 Unamortized prior service cost ā ā ā ā ā ā ā 4.7 ā ā 2.8 ā $ 19.6 ā $ 9.1 ā $ 31.9 ā $ 26.0 ā As of December 31, 2019 and 2018, the following amounts were recognized on the balance sheet: ā ā ā ā ā ā ā ā ā ā ā ā ā ā SERPs ā Defined Benefit Plans ā 2019 2018 2019 2018 ā (in millions) ā (in millions) Amounts recognized in the statement of financial position ā ā ā ā ā ā ā ā ā ā ā Current liabilities $ (17.5) ā $ (1.1) ā $ ā ā $ ā Noncurrent liabilities ā (32.3) ā ā (36.1) ā ā (9.1) ā ā (1.7) Accumulated other comprehensive loss ā 19.6 ā ā 9.1 ā ā 31.9 ā ā 26.0 Net amount recognized $ (30.2) ā $ (28.1) ā $ 22.8 ā $ 24.3 ā The accumulated benefit obligation for the SERPs was $42.0 million and $32.5 million as of December 31, 2019 and 2018, respectively. The accumulated benefit obligation for the Defined Benefit Plans was $116.2 million and $96.6 million as of December 31, 2019 and 2018, respectively. ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 ā (in millions) Information for defined benefit plans with an accumulated benefit obligation and projected benefit obligation in excess of plan assets ā ā ā ā ā Accumulated benefit obligation $ 116.2 ā $ 53.0 Projected benefit obligation ā 116.2 ā ā 53.0 Fair value of plan assets ā 107.1 ā ā 50.1 ā Following are the details of net periodic benefit cost related to the SERPs and Defined Benefit Plans: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā SERPs ā Defined Benefit Plans ā Year Ended December 31, ā Year Ended December 31, ā 2019 2018 2017 2019 2018 2017 ā (in millions) ā (in millions) Service cost $ 0.9 ā $ 0.9 ā $ 0.8 ā $ 1.6 ā $ 1.7 ā $ 1.5 Interest cost ā 1.4 ā ā 1.1 ā ā 1.1 ā ā 3.8 ā ā 3.5 ā ā 3.7 Expected return on plan assets ā ā ā ā ā ā ā ā ā ā (5.6) ā ā (5.1) ā ā (4.4) Settlement loss ā ā ā ā ā ā ā 3.7 ā ā ā ā ā ā ā ā 0.1 Prior service cost ā ā ā ā ā ā ā ā ā ā 0.4 ā ā 0.3 ā ā 0.3 Amortization of net loss ā 1.0 ā ā 0.9 ā ā 0.9 ā ā 1.3 ā ā 1.4 ā ā 1.5 ā $ 3.3 ā $ 2.9 ā $ 6.5 ā $ 1.5 ā $ 1.8 ā $ 2.7 ā Net periodic benefit cost related to the SERPs and Defined Benefit Plans is presented in our statements of income as summarized below: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā SERPs ā Defined Benefit Plans ā Year Ended December 31, ā Year Ended December 31, ā 2019 2018 2017 2019 2018 2017 ā (in millions) ā (in millions) Amounts recognized in the statement of income ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Warehouse, delivery, selling, general and administrative expense $ 0.9 ā $ 0.9 ā $ 0.8 ā $ 1.6 ā $ 1.7 ā $ 1.5 Other (income) expense, net ā 2.4 ā ā 2.0 ā ā 5.7 ā ā (0.1) ā ā 0.1 ā ā 1.2 ā $ 3.3 ā $ 2.9 ā $ 6.5 ā $ 1.5 ā $ 1.8 ā $ 2.7 ā Assumptions used to determine net periodic benefit cost are detailed below: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā SERPs ā Defined Benefit Plans ā ā Year Ended December 31, ā Year Ended December 31, ā ā 2019 2018 2017 2019 2018 2017 Weighted average assumptions to determine net cost ā ā ā ā ā ā ā ā ā ā ā ā Discount rate 3.81 % 3.04 % 3.36 % 4.06 % 3.47 % 3.93 % Expected long-term rate of return on plan assets N/A ā N/A ā N/A ā 6.09 % 5.66 % 6.17 % Rate of compensation increase 6.00 % 6.00 % 6.00 % N/A ā N/A ā N/A ā ā Assumptions used to determine the benefit obligation are detailed below: ā ā ā ā ā ā ā ā ā ā ā SERPs ā Defined Benefit Plans ā ā December 31, ā December 31, ā ā 2019 2018 2019 2018 Weighted average assumptions to determine benefit obligations ā ā ā ā ā ā ā ā Discount rate 2.63 % 3.82 % 2.59 % 4.06 % Expected long-term rate of return on plan assets N/A ā N/A ā 6.09 % 5.66 % Rate of compensation increase 6.00 % 6.00 % N/A ā N/A ā ā Employer contributions of $17.5 million are expected during 2020 to the SERPs and $1.8 million to the Defined Benefit Plans. ā Defined Benefit Plan Termination ā We have merged our frozen defined benefit pension plans into a single plan (the āFrozen Defined Benefit Planā) and are proceeding with terminating the plan. Pursuant to the termination, the distribution of plan assets is anticipated to be completed in the second half of 2020. Participants of the Frozen Defined Benefit Plan can elect to receive their accrued benefit either in the form of a lump sum payment or an annuity contract that we purchase from an insurance company. The plan termination in 2020 is expected to result in plan settlement charges in an amount that will be determined based on market conditions when the distributions are made. As such, we are currently unable to reasonably estimate the timing or amount of the settlement charges. The Frozen Defined Benefit Plan had a projected benefit obligation of $49.8 million, plan assets with a fair value of $47.8 million and an accumulated comprehensive loss of $16.3 million as of December 31, 2019. ā Plan Assets and Investment Policy ā The weighted-average asset allocations of our Defined Benefit Plans by asset category are as follows: ā ā ā ā ā ā ā December 31, ā ā 2019 2018 ā Plan Assets ā ā ā ā Equity securities 33 % 51 % Debt securities 60 % 45 % Cash and cash equivalents 7 % 4 % Total 100 % 100 % ā Plan assets are invested in various asset classes that are expected to produce a sufficient level of diversification and investment return over the long term. Pursuant to the termination of the Frozen Defined Benefit Plan, 100% of the investments held by the Frozen Defined Plan were comprised of debt securities and cash and cash equivalents. The investment goal is a return on assets that is at least equal to the assumed actuarial rate of return over the long-term within reasonable and prudent levels of risk. We establish our estimated long-term return on plan assets assumption considering various factors including the targeted asset allocation percentages, historic returns and expected future returns. ā The fair value measurements of our Defined Benefit Plan assets fall within the following levels of the fair value hierarchy as of December 31, 2019 and 2018: ā ā ā ā ā ā ā ā ā ā ā ā ā ā Level 1 Level 2 Level 3 Total ā (in millions) December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā Common stock (1) $ 25.1 ā $ ā ā $ ā ā $ 25.1 U.S. government, state and agency ā ā ā ā 9.3 ā ā ā ā ā 9.3 Corporate debt securities (2) ā ā ā ā 3.6 ā ā ā ā ā 3.6 Mutual funds (3) ā 59.4 ā ā ā ā ā ā ā ā 59.4 Interest and non-interest bearing cash ā 7.3 ā ā ā ā ā ā ā ā 7.3 Total investments in the fair value hierarchy ā 91.8 ā ā 12.9 ā ā ā ā ā 104.7 Investments measured at net asset value ("NAV") (4) ā ā ā ā ā ā ā ā ā ā 2.4 Total investments at fair value $ 91.8 ā $ 12.9 ā $ ā ā $ 107.1 ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2018: ā ā ā ā ā ā ā ā ā ā ā Common stock (1) $ 27.5 ā $ ā ā $ ā ā $ 27.5 U.S. government, state and agency ā ā ā ā 11.6 ā ā ā ā ā 11.6 Corporate debt securities (2) ā ā ā ā 17.3 ā ā ā ā ā 17.3 Mutual funds (3) ā 32.2 ā ā ā ā ā ā ā ā 32.2 Interest and non-interest bearing cash ā 3.6 ā ā ā ā ā ā ā ā 3.6 Total investments in the fair value hierarchy ā 63.3 ā ā 28.9 ā ā ā ā ā 92.2 Investments measured at net asset value ("NAV") (4) ` ā ā ā ā ā ā ā ā ā 2.7 Total investments at fair value $ 63.3 ā $ 28.9 ā $ ā ā $ 94.9 (1) Comprised primarily of securities of large domestic and foreign companies. Valued at the closing price reported on the active market on which the individual securities are traded. ā (2) Valued using a combination of inputs including: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. ā (3) Level 1 assets are comprised of exchange traded funds, money market funds, and stock and bond funds. These assets are valued at closing price for exchange traded funds and NAV for open-end and closed-end mutual funds. ā (4) Certain investments, including common collective trusts, are measured at fair value using the NAV practical expedient. The fair value of these investments are excluded from the fair value hierarchy and are presented in the tables above to permit reconciliation of the investments classified within the fair value hierarchy to the total investments at fair value. ā Summary DisclosuresāSERPs and Defined Benefit Plans ā The following is a summary of benefit payments under the SERPs and Defined Benefit Plans, which reflect expected future employee service, as appropriate, expected to be paid in the periods indicated: ā ā ā ā ā ā ā ā ā ā ā Defined ā SERPs Benefit Plans ā ā (in millions) 2020 $ 17.5 ā $ 52.0 2021 ā 1.1 ā ā 2.1 2022 ā 10.6 ā ā 2.3 2023 ā 1.0 ā ā 2.5 2024 ā 1.0 ā ā 2.7 2025-2029 ā 4.2 ā ā 16.0 ā Supplemental Bonus Plan ā In connection with the acquisition of EMJ in April 2006, Reliance assumed the obligation resulting from EMJās settlement with the U.S. Department of Labor to contribute 258,006 shares of Reliance common stock to EMJās Supplemental Bonus Plan, a phantom stock bonus plan supplementing the EMJ Retirement Savings Plan. As of December 31, 2019, the remaining obligation to the EMJ Supplemental Bonus Plan consisted of the cash equivalent of 64,362 shares of Reliance common stock with a fair value of $7.7 million. The adjustments to reflect this obligation at fair value based on the closing price of our common stock at the end of each reporting period are included in Warehouse, delivery, selling, general and administrative expense. The expense (income) from mark to market adjustments to this obligation in each of the years ended December 31, 2019, 2018 and 2017 amounted to $3.3 million, ($0.8) million and $0.6 million, respectively. This obligation will be satisfied by future cash payments to participants upon their termination of employment. ā Contributions to Reliance Sponsored Retirement Plans ā Our expense for Reliance-sponsored retirement plans was as follows: ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 ā (in millions) Master Plan $ 22.7 ā $ 28.1 ā $ 25.0 Other defined contribution plans ā 9.6 ā ā 9.4 ā ā 9.0 ESOP ā ā ā ā 1.9 ā ā 1.8 Reliance Deferred Compensation Plan ā 5.0 ā ā 0.9 ā ā 0.9 SERPs ā 3.3 ā ā 2.9 ā ā 6.5 Defined Benefit Plans ā 1.5 ā ā 1.8 ā ā 2.7 ā $ 42.1 ā $ 45.0 ā $ 45.9 ā |
Equity
Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity | |
Equity | Note 14. Equity ā Common Stock ā We have paid regular quarterly cash dividends on our common stock for 60 consecutive years. Our Board of Directors increased the quarterly dividend to $0.45 per share from $0.425 in February 2017, increased it to $0.50 in February 2018, increased it to $0.55 per share in February 2019 and increased it again in February 2020 to $0.625 per share. The holders of Reliance common stock are entitled to one vote per share on each matter submitted to a vote of stockholders. ā Share Repurchase Plan ā On October 23, 2018, our Board of Directors amended our share repurchase plan, increasing the total authorized number of shares available to be repurchased by 5.0 million and extending the duration of the plan through December 31, 2021. As of December 31, 2019, we had remaining authorization under the plan to purchase approximately 6.4 million shares, or approximately 10% of our current outstanding shares. We repurchase shares through open market purchases under plans complying with Rule 10b5-1 and Rule 10b-18 under the Securities Act of 1934, as amended. During 2019, we repurchased approximately 0.6 million shares of our common stock at an average cost of $84.33 per share, for a total of $50.0 million. During 2018, we repurchased approximately 6.1 million shares of our common stock at an average cost of $79.94 per share, for a total of $484.9 million. During 2017, we repurchased approximately 0.3 million shares of our common stock at an average cost of $74.27 per share, for a total of $25.0 million. Repurchased and subsequently retired shares are restored to the status of authorized but unissued shares. ā Preferred Stock ā We are authorized to issue 5,000,000 shares of preferred stock, par value $0.001 per share. No shares of our preferred stock are issued and outstanding . Our restated articles of incorporation provide that shares of preferred stock may be issued from time to time in one or more series by the Board. The Board can fix the preferences, conversion and other rights, voting powers, restrictions and limitations as to dividends, qualifications and terms and conditions of redemption of each series of preferred stock. The rights of preferred stockholders may supersede the rights of common stockholders. ā Accumulated Other Comprehensive Loss ā On October 1, 2018, we adopted accounting changes issued by the FASB that allow for a reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from Tax Reform. As a result of the adoption, we reclassified $5.5 million of income tax benefit from accumulated other comprehensive loss to retained earnings. ā Accumulated other comprehensive loss included the following: ā ā ā ā ā ā ā ā ā ā ā ā ā ā Pension and ā Accumulated ā Foreign Currency ā Postretirement ā Other ā Translation ā Benefit Adjustments, ā Comprehensive ā (Loss) Gain Net of Tax Loss ā (in millions) Balance as of January 1, 2019 $ (76.8) ā $ (25.9) ā $ (102.7) Current-year change ā 12.4 ā ā (14.8) ā ā (2.4) Balance as of December 31, 2019 $ (64.4) ā $ (40.7) ā $ (105.1) ā Foreign currency translation adjustments have not been adjusted for income taxes. Pension and postretirement benefit adjustments are net of taxes of $7.9 million and $6.5 million as of December 31, 2019 and December 31, 2018, respectively. Income tax effects are released from accumulated other comprehensive loss as obligations of the Defined Benefit Plans and SERPs are settled. |
Other (Income) Expense, net
Other (Income) Expense, net | 12 Months Ended |
Dec. 31, 2019 | |
Other (Income) Expense, net | |
Other (Income) Expense, net | ā Note 15. Other (Income) Expense, net ā Significant components of Other (income) expense, net are as follows: ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 ā (in millions) Investment income from life insurance policies $ (74.3) ā $ (67.4) ā $ (66.4) Interest expense on life insurance policy loans ā 73.9 ā ā 70.1 ā ā 66.5 Life insurance policy cost of insurance ā 12.8 ā ā 12.1 ā ā 11.5 Income from life insurance policy redemptions ā (7.8) ā ā (10.3) ā ā (8.5) Foreign currency transaction losses (gains) ā 4.1 ā ā (0.6) ā ā 4.9 Net periodic benefit cost ā components other than service cost ā 2.3 ā ā 2.1 ā ā 6.9 Other, net ā (11.8) ā ā (5.3) ā ā (10.2) ā $ (0.8) ā $ 0.7 ā $ 4.7 ā |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitment and Contingencies | |
Commitments and Contingencies | Note 16. Commitments and Contingencies ā Purchase Commitments ā As of December 31, 2019, we had commitments to purchase minimum quantities of certain metal products, which we entered into to secure material for corresponding long-term sales commitments we have entered into with our customers. The total amount of the minimum commitments based on current pricing is estimated at approximately $78.2 million, with amounts in 2020, 2021 and thereafter being $42.1 million, $34.4 million and $1.7 million, respectively. ā Collective Bargaining Agreements ā As of December 31, 2019, approximately 11% , or 1,690 , of our total employees are covered by 62 collective bargaining agreements at 52 of our different locations, which expire at various times over the next six years . Approximately 400 of our employees are covered by 18 different collective bargaining agreements that will expire during 2020. ā Environmental Contingencies ā We are subject to extensive and changing federal, state, local and foreign laws and regulations designed to protect the environment, including those relating to the use, handling, storage, discharge and disposal of hazardous substances and the remediation of environmental contamination. Our operations use minimal amounts of such substances. ā We believe we are in material compliance with environmental laws and regulations; however, we are from time to time involved in administrative and judicial proceedings and inquiries relating to environmental matters. Some of our owned or leased properties are located in industrial areas with histories of heavy industrial use. We may incur some environmental liabilities because of the location of these properties. In addition, we are currently involved with an environmental remediation project related to activities at former manufacturing operations of EMJ, our wholly owned subsidiary, that were sold many years prior to our acquisition of EMJ in 2006. Although the potential cleanup costs could be significant, EMJ maintained insurance policies during the time it owned the manufacturing operations that have covered costs incurred to date, and are expected to continue to cover the majority of the related costs. We do not expect that this obligation will have a material adverse impact on our consolidated financial position, results of operations or cash flows. ā Legal Matters ā From time to time, we are named as a defendant in legal actions. Generally, these actions arise in the ordinary course of business. We are not currently a party to any pending legal proceedings other than routine litigation incidental to the business. We expect that these matters will be resolved without having a material adverse impact on our consolidated financial condition, results of operations or cash flows. We maintain general liability insurance against risks arising in the ordinary course of business. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share | |
Earnings Per Share | Note 17. Earnings Per Share ā The following table sets forth the computation of basic and diluted earnings per share: ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 ā 2018 ā 2017 ā (in millions, except share amounts which are reflected in thousands and per share amounts) Numerator: ā ā ā ā ā ā ā ā Net income attributable to Reliance $ 701.5 ā $ 633.7 ā $ 613.4 Denominator: ā ā ā ā ā ā ā ā Weighted average shares outstanding ā 66,885 ā ā 71,621 ā ā 72,851 Dilutive effect of stock-based awards ā 970 ā ā 820 ā ā 688 Weighted average diluted shares outstanding ā 67,855 ā ā 72,441 ā ā 73,539 ā ā ā ā ā ā ā ā ā Earnings per share attributable to Reliance stockholders: ā ā ā ā ā ā ā ā Diluted $ 10.34 ā $ 8.75 ā $ 8.34 Basic $ 10.49 ā $ 8.85 ā $ 8.42 ā Potentially dilutive securities whose effect would have been antidilutive were not significant for all years presented. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information | |
Segment Information | Note 18. Segment Information ā We have one reportable segment ā metals service centers ā ā ā ā ā ā ā ā ā 2019 ā 2018 ā 2017 ā Carbon steel 52 % 53 % 52 % Aluminum 19 % 19 % 19 % Stainless steel 14 % 14 % 14 % Alloy 6 % 6 % 6 % Toll processing and logistics 4 % 4 % 4 % Other 5 % 4 % 5 % Total 100 % 100 % 100 % ā The following table summarizes consolidated financial information of our operations by geographic location based on where sales originated from: ā ā ā ā ā ā ā ā ā ā ā United States Foreign Countries Total ā (in millions) Year Ended December 31, 2019: ā ā ā ā ā ā ā ā Net sales $ 10,099.2 ā $ 874.6 ā $ 10,973.8 Long-lived assets ā 4,776.7 ā ā 344.2 ā ā 5,120.9 Year Ended December 31, 2018: ā ā ā ā ā ā ā ā Net sales ā 10,638.4 ā ā 896.1 ā ā 11,534.5 Long-lived assets ā 4,431.8 ā ā 328.1 ā ā 4,759.9 Year Ended December 31, 2017: ā ā ā ā ā ā ā ā Net sales ā 8,847.3 ā ā 873.7 ā ā 9,721.0 Long-lived assets ā 4,353.7 ā ā 346.0 ā ā 4,699.7 ā |
Impairment and Restructuring Ch
Impairment and Restructuring Charges | 12 Months Ended |
Dec. 31, 2019 | |
Impairment and Restructuring Charges | |
Impairment and Restructuring Charges | Note 19. Impairment and Restructuring Charges ā The impairment and restructuring charges consisted of the following: ā ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 (in millions) Property, plant and equipment $ 1.2 ā $ 3.8 ā $ 4.2 Intangible assets, net ā ā ā ā 33.2 ā ā ā Total impairment charges ā 1.2 ā ā 37.0 ā ā 4.2 Restructuring cost of sales ā ā ā ā ā ā ā (0.2) Restructuring warehouse, delivery, selling, general and administrative expense ā ā ā ā 2.5 ā ā 0.1 Total impairment and restructuring charges $ 1.2 ā $ 39.5 ā $ 4.1 ā The 2018 charges mainly related to our decision to downsize one of our energy businesses due to changes in competitive factors for certain products we sell. |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information (Unaudited) | |
Quarterly Financial Information (Unaudited) | Note 20. Quarterly Financial Information (Unaudited) ā The following is a summary of the unaudited quarterly results of operations for 2019 and 2018: ā ā ā ā ā ā ā ā ā ā ā ā ā ā Quarter Ended ā December 31, September 30, June 30, March 31, ā (in millions, except per share amounts) 2019: ā ā ā ā ā ā ā ā ā ā ā Net sales $ 2,447.8 $ 2,685.9 $ 2,883.5 $ 2,956.6 Cost of sales ā 1,653.6 ā ā 1,871.2 ā ā 2,029.9 ā ā 2,089.7 Gross profit (1) ā 794.2 ā ā 814.7 ā ā 853.6 ā ā 866.9 Net income ā 166.3 ā ā 163.9 ā ā 184.3 ā ā 191.6 Net income attributable to Reliance ā 165.6 ā ā 162.7 ā ā 183.1 ā ā 190.1 Earnings per share attributable to Reliance stockholders: ā ā ā ā ā ā ā ā ā ā ā Diluted ā 2.44 ā ā 2.40 ā ā 2.69 ā ā 2.80 Basic ā 2.48 ā ā 2.44 ā ā 2.73 ā ā 2.83 ā ā ā ā ā ā ā ā ā ā ā ā 2018: ā ā ā ā ā ā ā ā ā ā ā Net sales $ 2,814.0 $ 2,974.5 $ 2,988.9 $ 2,757.1 Cost of sales ā 2,104.2 ā ā 2,140.2 ā ā 2,071.4 ā ā 1,937.2 Gross profit (1) ā 709.8 ā ā 834.3 ā ā 917.5 ā ā 819.9 Net income ā 87.3 ā ā 150.3 ā ā 233.1 ā ā 171.1 Net income attributable to Reliance ā 85.6 ā ā 148.3 ā ā 230.8 ā ā 169.0 Earnings per share attributable to Reliance stockholders: ā ā ā ā ā ā ā ā ā ā ā Diluted ā 1.22 ā ā 2.03 ā ā 3.16 ā ā 2.30 Basic ā 1.23 ā ā 2.06 ā ā 3.19 ā ā 2.32 (1) Gross profit, calculated as net sales less cost of sales, is a non-GAAP financial measure as it excludes depreciation and amortization expense associated with the corresponding sales. About half of our orders are basic distribution with no processing services performed. For the remainder of our sales orders, we perform āfirst-stageā processing, which is generally not labor intensive as we are simply cutting the metal to size. Because of this, the amount of related labor and overhead, including depreciation and amortization, is not significant and is excluded from cost of sales. Therefore, our cost of sales is substantially comprised of the cost of the material we sell. We use gross profit as shown above as a measure of operating performance. Gross profit is an important operating and financial measure, as fluctuations in gross profit can have a significant impact on our earnings. Gross profit, as presented, is not necessarily comparable with similarly titled measures for other companies. ā Quarterly and year-to-date computations of per share amounts are made independently. Therefore, the sum of per share amounts for the quarters may not agree with per share amounts for the years shown elsewhere in this Annual Report on Form 10-K. |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2019 | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | RELIANCE STEEL & ALUMINUM CO. SCHEDULE IIāVALUATION AND QUALIFYING ACCOUNT S (in millions) ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Additions ā ā ā ā Amounts ā ā ā ā ā Balance at ā Charged to ā ā ā ā Charged to ā Balance at ā ā Beginning ā Costs and ā ā ā ā Other ā End of ā of Year Expenses Deductions (1) ā Accounts Year Year Ended December 31, 2017 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Allowance for doubtful accounts ā $ 15.3 ā $ 6.7 ā $ 6.5 ā $ ā ā $ 15.5 Year Ended December 31, 2018 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Allowance for doubtful accounts ā $ 15.5 ā $ 7.4 ā $ 4.4 ā $ 0.3 ā $ 18.8 Year Ended December 31, 2019 ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Allowance for doubtful accounts ā $ 18.8 ā $ 3.4 ā $ 4.4 ā $ ā ā $ 17.8 (1) Uncollectible accounts written off. ā See accompanying report of independent registered public accounting firm. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation ā The accompanying consolidated financial statements include the accounts of Reliance Steel & Aluminum Co. and its subsidiaries (collectively referred to as āRelianceā, āthe Companyā, āweā, āourā or āusā). 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. |
Business | Business ā We operate a metals service center network of more than 300 locations in 40 states in the U.S. and in 13 other countries (Australia, Belgium, Canada, China, France, India, Malaysia, Mexico, Singapore, South Korea, Turkey, the United Arab Emirates and the United Kingdom) that provides value-added metals processing services and distributes a full line of more than 100,000 metal products. Since our inception in 1939, we have not diversified outside our core business as a metals service center operator. |
Accounting Estimates | Accounting Estimates ā The preparation of financial statements in conformity with U.S. generally accepted accounting principles (āGAAPā) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, such as allowances for uncollectible accounts, net realizable values of inventories, fair values and/or impairment of goodwill and other indefinite-lived intangible assets, long-lived assets, the amount of unrecognized tax benefits and other contingencies, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Accounts Receivable and Concentrations of Credit Risk | Accounts Receivable and Concentrations of Credit Risk ā Concentrations of credit risk with respect to trade receivables are limited due to the geographically diverse customer base, with limited exposure to any single customer account, and various industries into which our products are sold. Trade receivables are typically non-interest bearing and are initially recorded at cost. Sales to our recurring customers are generally made on open account terms while sales to occasional customers may be made on a collect on delivery basis when collectability is not assured. Past due status of customer accounts is determined based on how recently payments have been received in relation to payment terms granted. Credit is generally extended based upon an evaluation of each customerās financial condition, with terms consistent in the industry and no collateral is required. Losses from credit sales are provided for in the financial statements and consistently have been within the allowance provided. The allowance is an estimate of the amount of accounts receivable that will not be collected from our customers based on an evaluation of specific customer risks along with additional reserves based on historical and probable bad debt experience. Amounts are written-off against the allowance in the period we determine that the receivable is uncollectible. As a result of the above factors, we do not consider ourselves to have any significant concentrations of credit risk. |
Inventories | Inventories ā The majority of our inventory is valued using the last-in, first-out (āLIFOā) method, which is not in excess of market. Under this method, older costs are included in inventory, which may be higher or lower than current costs. This method of valuation is subject to year-to-year fluctuations in cost of material sold, which is influenced by the inflation or deflation existing within the metals industry as well as fluctuations in our product mix and on-hand inventory levels. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments ā Fair values of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities, current maturities of operating lease liabilities and long-term debt approximate carrying values due to the short period of time to maturity. Fair values of long-term debt, which have been determined based on borrowing rates currently available to us or to other companies with comparable credit ratings, for loans with similar terms or maturity, approximate the carrying amounts in the consolidated financial statements, with the exception of our publicly traded senior unsecured notes of $750.0 million as of December 31, 2019 and 2018. The fair values of these senior unsecured notes based on quoted market prices were $840.0 million and $780.0 million at December 31, 2019 and 2018, respectively, compared to their carrying values of $745.6 million and $744.8 million, respectively. These estimated fair values are based on Level 2 inputs, including benchmark yields, reported trades and broker/dealer quotes. Fair values are generally based on quoted market prices for identical or similar instruments. |
Cash Equivalents | Cash Equivalents ā We consider all highly liquid instruments with an original maturity of three months or less when purchased to be cash equivalents. We maintain cash and cash equivalents with high credit quality financial institutions. The Company, by policy, limits the amount of credit exposure to any one financial institution. |
Goodwill and Other Indefinite-Lived Intangible Assets | Goodwill and Other Indefinite-Lived Intangible Assets ā Goodwill is the excess of purchase price over the fair value of identified assets and liabilities of businesses acquired. Other indefinite-lived intangible assets include amounts allocated to the trade names of businesses acquired. Goodwill and other indefinite-lived intangible assets are not amortized but are tested for impairment at least annually. ā We test for impairment of goodwill and intangible assets deemed to have indefinite lives annually and, between annual tests, whenever significant events or changes occur based on an assessment of qualitative factors to determine if it is more likely than not that the fair value is less than the carrying value. We have one operating segment and one reporting unit for goodwill impairment purposes. We calculate the fair value of the reporting unit using our market capitalization or the discounted cash flow method, as necessary, and compare the fair value to the carrying value of the reporting unit to determine if impairment exists. We perform our annual impairment evaluations of goodwill and other indefinite-lived intangible assets goodwill on November 1 of each year. No impairment of goodwill was determined to exist in any of the years presented. We recognized an impairment loss of $16.5 million related to our other intangible assets with indefinite lives in 2018, respectively. See Note 19 ā āImpairment and Restructuring Chargesā |
Long-Lived Assets | Long-Lived Assets ā Property, plant and equipment is recorded at cost (or at fair value for assets acquired in connection with business combinations) and the provision for depreciation of these assets is generally computed on the straight-line method at rates designed to distribute the cost of assets over the useful lives, estimated as follows: buildings, including leasehold improvements, over five to 50 years and machinery and equipment over three to 20 years . ā Intangible assets with finite useful lives are amortized over their useful lives. We periodically review the recoverability of our property, plant and equipment and intangible assets subject to amortization whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. We recognized impairment losses of $1.2 million, $3.8 million and $4.2 million for property, plant and equipment in 2019, 2018 and 2017, respectively, and $16.7 million for intangible assets with finite lives in 2018. See Note 19 ā āImpairment and Restructuring Chargesā |
Revenue Recognition | Revenue Recognition ā We recognize revenue when control of metal products or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. There are no significant judgments or estimates made to determine the amount or timing of our reported revenues. The amount of transaction price associated with unperformed performance obligations is not significant as of December 31, 2019 and 2018. ā Metal Sales ā We have minimal long-term contract sales with our customers as we primarily transact in the spot market under fixed price sales orders. The majority of our metal product sales orders generally have only one performance obligation: sale of processed or unprocessed metal product. Control of the metal products we sell transfers to our customers upon delivery for orders with FOB destination terms or upon shipment for orders with FOB shipping point terms. Shipping and handling charges to our customers are included in net sales. We account for all shipping and handling of our products as fulfillment activities and not as a promised good or service. Costs incurred in connection with the shipping and handling of our products are typically included in operating expenses whether we use a third-party carrier or our own trucks. In 2019, 2018 and 2017, shipping and handling costs included in Warehouse, delivery, selling, general and administrative expenses were $404.1 million, $412.7 million and $372.3 million, respectively. Shipment and delivery of our orders generally occur on the same day due to the close proximity of our customers and our metals service center locations. ā Toll Processing and Logistics ā Toll processing services relate to the processing of customer-owned metal. Logistics services primarily include transportation services for metal we toll-process. Revenue for these services is recognized over time as the toll processing or logistics services are performed. The toll processing services are generally short-term in nature with the service being performed in less than one day . ā Seasonality ā Some of our customers are in seasonal businesses, especially customers in the construction industry and related businesses. However, our overall operations have not shown any material seasonal trends as a result of our geographic, product and customer diversity. Typically, revenues in the months of July, November and December have been lower than in other months because of a reduced number of working days for shipments of our products, resulting from holidays observed by the Company as well as vacation and extended holiday closures at some of our customers. |
Stock-Based Compensation | Stock-Based Compensation ā All of our stock-based compensation plans are considered equity plans. The fair value of stock awards and restricted stock units is determined based on the fair value of our common stock on the grant date. The fair value of stock awards and restricted stock units is expensed on a straight-line basis over their respective vesting periods, net of forfeitures when they occur. Stock-based compensation expense was $51.2 million, $45.5 million and $33.4 million in 2019, 2018 and 2017, respectively, and is included in the Warehouse, delivery, selling, general and administrative expense caption of our consolidated statements of income. |
Environmental Remediation Costs | Environmental Remediation Costs ā We accrue for losses associated with environmental remediation obligations when such losses are probable and reasonably estimable. Accruals for estimated losses from environmental remediation obligations generally are recognized no later than completion of the remediation feasibility study. Such accruals are adjusted as further information develops or circumstances change. Recoveries of environmental remediation costs from other parties are recorded as assets when their receipt is deemed probable. We are not aware of any environmental remediation obligations that would materially affect our operations, financial position or cash flows. See Note 16 ā āCommitments and Contingenciesā |
Income Taxes | Income Taxes ā We file a consolidated U.S. federal income tax return with our wholly owned domestic subsidiaries. Deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax reporting bases of assets and liabilities using the enacted tax rates expected to be in effect when such differences are realized or settled. The effect on deferred taxes from a change in tax rates is recognized in income in the period that includes the enactment date of the change. The provision for income taxes reflects the taxes to be paid for the period and the change during the period in the deferred tax assets and liabilities. We evaluate on a quarterly basis whether, based on all available evidence, it is probable that the deferred income tax assets are realizable. Valuation allowances are established when it is estimated that it is more likely than not that the tax benefit of the deferred tax asset will not be realized. ā We make a comprehensive review of our uncertain tax positions on a quarterly basis. Tax benefits are recognized when it is more likely than not that a tax position will be sustained upon examination by the authorities. The benefit from a position that has surpassed the more-likely-than-not threshold is the largest amount of benefit that is more than 50% likely to be realized upon settlement. We recognize interest and penalties accrued related to unrecognized tax benefits as a component of income tax expense. ā On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (āTax Reformā) was enacted, which included significant changes to the taxation of U.S. corporations. These changes include, among other things, a reduction of the U.S. federal statutory rate from 35% to 21% effective in 2018, the implementation of a territorial tax system, a one-time tax in 2017 on accumulated foreign profits that have not been previously subject to U.S. tax law (transition tax), the repeal of the corporate alternative minimum tax and changes to business deductions, including a new limitation on the deductibility of business interest, stricter limits on the deductibility of certain executive compensation and the repeal of the deduction for domestic production activities. For further discussion of the impact of the tax legislation, see Note 11 ā āIncome Taxes.ā |
Foreign Currencies | Foreign Currencies ā The currency effects of translating the financial statements of our foreign subsidiaries, which operate in local currency environments, are included in other comprehensive income (loss). Gains and losses resulting from foreign currency transactions are included in the results of operations in the Other (income) expense, net caption and amounted to net losses of $4.1 million in 2019, net gains of $0.6 million in 2018 and net losses of $4.9 million in 2017. |
Impact of Recently Issued Accounting Standards - Adopted | Impact of Recently Issued Accounting StandardsāAdopted ā Leases a lease liability using a modified retrospective transition method and provide enhanced disclosures. In July 2018, the FASB issued an update to these accounting changes providing an additional, optional transition method that allows lessees the option to initially apply the new accounting changes at the adoption date while continuing to present all prior periods under previous lease accounting guidance. ā We adopted the new standard on January 1, 2019 using the optional transition method and available practical expedients. The practical expedients allow us, among other things, to carry forward our assessment of lease classification and remaining lease terms under the previous lease accounting guidance. Our adoption of the new lease standard resulted in the recognition of $186.3 million of operating lease right-of-use assets and $187.1 million of operating lease liabilities but did not have a material impact on our consolidated statements of income, equity or cash flows. For further discussion of our leases, see Note 10 ā āLeases.ā |
Impact of Recently Issued Accounting Standards - Not Yet Adopted | Impact of Recently Issued Accounting StandardsāNot Yet Adopted ā Income Taxes ā Financial Instruments ā Credit Losses |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fry Steel | |
Acquisitions | |
Schedule of allocation of the purchase price of acquisition to the fair value of the assets acquired and liabilities assumed | ā ā ā ā ā (in millions) Cash $ 17.1 Accounts receivable ā 5.7 Inventories ā 38.8 Property, plant and equipment ā 6.4 Goodwill ā 130.8 Other current and long-term assets ā 0.2 Total assets acquired ā 199.0 Other current and long-term liabilities ā 5.1 Total liabilities assumed ā 5.1 Net assets acquired $ 193.9 |
All Metals, DuBose and KMS | |
Acquisitions | |
Schedule of allocation of the purchase price of acquisition to the fair value of the assets acquired and liabilities assumed | ā ā ā ā ā (in millions) Cash $ 2.4 Accounts receivable ā 13.1 Inventories ā 10.0 Property, plant and equipment ā 20.1 Goodwill ā 32.9 Intangible assets subject to amortization ā 25.0 Intangible assets not subject to amortization ā 18.3 Other current and long-term assets ā 1.1 Total assets acquired ā 122.9 Current and long-term debt ā 25.9 Deferred taxes ā 5.4 Other current and long-term liabilities ā 9.6 Total liabilities assumed ā 40.9 Net assets acquired $ 82.0 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventories | |
Schedule of inventories | ā ā ā ā ā ā ā ā December 31, ā December 31, ā 2019 2018 ā (in millions) LIFO inventories - cost on FIFO method $ 1,387.7 ā $ 1,737.3 Cost on FIFO method higher than LIFO value ā (137.6) ā ā (293.6) Inventories - stated on LIFO method ā 1,250.1 ā ā 1,443.7 Inventories - stated on FIFO method ā 395.6 ā ā 373.4 ā $ 1,645.7 ā $ 1,817.1 |
Schedule of changes in the LIFO valuation reserve and impact of LIFO liquidations | ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 ā 2018 ā 2017 ā (in millions) LIFO inventory valuation reserve adjustment (income) charge $ (156.0) ā $ 271.8 ā $ 73.3 Liquidation of LIFO inventory quantities that decreased cost of sales ā (11.6) ā ā ** ā ā ** ** Insignificant liquidations of LIFO inventory quantities. ā |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue | |
Schedule of disaggregation of revenue | ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 ā 2018 ā 2017 ā (in millions) Carbon steel $ 5,792.9 ā $ 6,285.8 ā $ 5,189.6 Aluminum ā 2,151.9 ā ā 2,210.9 ā ā 1,916.9 Stainless steel ā 1,578.0 ā ā 1,636.1 ā ā 1,386.3 Alloy ā 652.1 ā ā 680.7 ā ā 587.8 Toll processing and logistics ā 450.7 ā ā 415.3 ā ā 362.1 Other and eliminations ā 348.2 ā ā 305.7 ā ā 278.3 Total $ 10,973.8 ā $ 11,534.5 ā $ 9,721.0 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill. | |
Schedule of changes in the carrying amount of goodwill | ā ā ā ā ā (in millions) ā ā ā Balance at January 1, 2017 $ 1,827.4 Acquisitions ā 10.3 Effect of foreign currency translation ā 4.9 Balance at December 31, 2017 ā 1,842.6 Acquisitions ā 33.8 Effect of foreign currency translation ā (5.6) Balance at December 31, 2018 ā 1,870.8 Acquisitions ā 131.8 Purchase price allocation adjustments ā (1.9) Effect of foreign currency translation ā 3.1 Balance at December 31, 2019 $ 2,003.8 |
Intangible Assets, net (Tables)
Intangible Assets, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets, net | |
Summary of intangible assets, net | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2019 ā December 31, 2018 ā Weighted Average ā Gross ā ā ā ā Gross ā ā ā ā Amortizable ā Carrying ā Accumulated ā Carrying ā Accumulated ā Life in Years Amount Amortization Amount Amortization ā ā ā (in millions) Intangible assets subject to amortization: ā ā ā ā ā ā ā ā ā ā ā ā ā Covenants not to compete 5.0 ā $ 0.7 ā $ (0.4) ā $ 0.8 ā $ (0.4) Customer lists/relationships 15.0 ā ā 710.1 ā ā (438.1) ā ā 707.3 ā ā (393.4) Software 10.0 ā ā 8.1 ā ā (8.1) ā ā 8.1 ā ā (8.1) Other 7.6 ā ā 1.1 ā ā (0.9) ā ā 1.0 ā ā (0.9) ā ā ā ā 720.0 ā ā (447.5) ā ā 717.2 ā ā (402.8) Intangible assets not subject to amortization: ā ā ā ā ā ā ā ā ā ā ā ā ā Trade names ā ā ā 758.6 ā ā ā ā ā 757.6 ā ā ā ā ā ā $ 1,478.6 ā $ (447.5) ā $ 1,474.8 ā $ (402.8) |
Summary of estimated aggregate amortization expense | ā ā ā ā ā (in millions) 2020 $ 43.2 2021 ā 41.5 2022 ā 36.7 2023 ā 30.7 2024 ā 27.2 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt | |
Summary of debt | ā ā ā ā ā ā ā ā December 31, ā December 31, ā 2019 2018 ā (in millions) Unsecured revolving credit facility due September 30, 2021 $ 368.0 ā $ 925.0 Unsecured term loan due from March 31, 2020 to September 30, 2021 ā 465.0 ā ā 525.0 Senior unsecured notes due April 15, 2023 ā 500.0 ā ā 500.0 Senior unsecured notes due November 15, 2036 ā 250.0 ā ā 250.0 Other notes and revolving credit facilities ā 13.3 ā ā 14.2 Total ā 1,596.3 ā ā 2,214.2 Less: unamortized discount and debt issuance costs ā (7.8) ā ā (10.5) Less: amounts due within one year and short-term borrowings ā (64.9) ā ā (65.2) Total long-term debt $ 1,523.6 ā $ 2,138.5 |
Summary of aggregate maturities of long-term debt for each of the next five years and thereafter | ā ā ā ā ā (in millions) 2020 $ 64.9 2021 ā 773.7 2022 ā 0.3 2023 ā 506.0 2024 ā 0.3 Thereafter ā 251.1 ā $ 1,596.3 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases | |
Schedule of lease cost | ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 ā (in millions) Operating lease cost $ 84.4 ā $ 82.7 ā $ 77.9 |
Schedule of supplemental cash flow and other lease information | ā ā ā ā ā Year Ended ā December 31, 2019 ā (in millions) Supplemental cash flow information ā ā Cash payments for operating leases $ 84.6 Right-of-use assets obtained in exchange for operating lease obligations ā 71.1 ā ā ā ā December 31, ā 2019 Other lease information ā ā Weighted average remaining lease termāoperating leases ā 5.6 years Weighted average discount rateāoperating leases ā 4.3% |
Schedule of maturities of operating lease liabilities | ā ā ā ā ā (in millions) 2020 $ 59.6 2021 ā 47.8 2022 ā 35.9 2023 ā 27.5 2024 ā 20.7 Thereafter ā 39.6 Total operating lease payments ā 231.1 Less: imputed interest ā (29.1) Total operating lease liabilities $ 202.0 |
Schedule of future minimum payments under the non-cancelable leases | ā ā ā ā ā (in millions) 2019 $ 59.5 2020 ā 45.5 2021 ā 32.9 2022 ā 22.7 2023 ā 16.2 Thereafter ā 40.7 Total operating lease payments $ 217.5 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes | |
Schedule of components of the provision for income taxes attributable to continuing operations | ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 ā (in millions) Current: ā ā ā ā ā ā ā ā Federal $ 136.3 ā $ 150.6 ā $ 117.8 State ā 37.9 ā ā 47.6 ā ā 21.5 Foreign ā 16.5 ā ā 19.7 ā ā 16.1 ā ā 190.7 ā ā 217.9 ā ā 155.4 Deferred: ā ā ā ā ā ā ā ā Federal ā 26.9 ā ā (6.0) ā ā (202.8) State ā 7.2 ā ā (2.3) ā ā 11.1 Foreign ā (1.6) ā ā (0.8) ā ā (0.9) ā ā 32.5 ā ā (9.1) ā ā (192.6) ā $ 223.2 ā $ 208.8 ā $ (37.2) |
Components of U.S. and international income before income taxes | ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 ā (in millions) ā ā ā ā ā ā ā ā ā U.S. $ 877.4 ā $ 775.2 ā $ 524.6 International ā 51.9 ā ā 75.4 ā ā 59.2 Income before income taxes $ 929.3 ā $ 850.6 ā $ 583.8 |
Schedule of reconciliation of income tax at the U.S. federal statutory tax rates to income tax expense | ā ā ā ā ā ā ā ā ā Year Ended December 31, ā ā 2019 2018 2017 ā Income tax at U.S. federal statutory tax rate 21.0 % 21.0 % 35.0 % Tax Reform ā ā 0.4 ā (35.5) ā State income tax, net of federal tax effect 3.6 ā 3.6 ā 3.8 ā Foreign earnings taxed at higher (lower) rates 0.4 ā 0.4 ā (0.7) ā Net effect of life insurance policies (1.5) ā (1.5) ā (3.6) ā Net effect of changes in unrecognized tax benefits ā ā (0.2) ā (0.2) ā Stock-based compensation 0.7 ā 0.6 ā (0.2) ā Domestic production activity deduction ā ā ā ā (1.6) ā Loss on sale of assets ā ā ā ā (0.8) ā Other, net (0.2) ā 0.2 ā (2.6) ā Effective tax rate 24.0 % 24.5 % (6.4) % |
Schedule of components of the Company's deferred tax assets and liabilities | ā ā ā ā ā ā ā ā December 31, ā 2019 2018 ā (in millions) Deferred tax assets: ā ā ā ā ā Accrued expenses not currently deductible for tax $ 31.6 ā $ 26.0 Inventory costs capitalized for tax purposes ā 13.1 ā ā 27.1 Stock-based compensation ā 8.2 ā ā 7.2 Allowance for doubtful accounts ā 4.9 ā ā 5.4 Tax credits carryforwards ā 1.4 ā ā 1.0 Net operating loss carryforwards ā 4.2 ā ā 6.0 Total deferred tax assets ā 63.4 ā ā 72.7 Deferred tax liabilities: ā ā ā ā ā Property, plant and equipment, net ā (189.1) ā ā (175.4) Goodwill and other intangible assets ā (311.6) ā ā (308.8) LIFO inventories ā (23.2) ā ā (21.1) Other ā (8.8) ā ā (7.5) Total deferred tax liabilities ā (532.7) ā ā (512.8) Net deferred tax liabilities $ (469.3) ā $ (440.1) |
Schedule of reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits | ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 ā (in millions) Unrecognized tax benefits at January 1 $ 2.4 ā $ 4.1 ā $ 5.2 Increases in tax positions for prior years ā 0.8 ā ā 0.4 ā ā ā Decreases in tax positions for prior years ā ā ā ā ā ā ā (0.1) Settlements ā (0.7) ā ā ā ā ā (0.2) Lapse of statute of limitations ā (0.3) ā ā (2.1) ā ā (0.8) Unrecognized tax benefits at December 31 $ 2.2 ā $ 2.4 ā $ 4.1 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation Plans | |
Schedule of stock option activity | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted Average ā ā ā ā ā ā ā ā ā Remaining ā Aggregate ā ā Option ā Weighted Average ā Contractual Term ā Intrinsic Value Stock Options Shares Exercise Price (in years) (in millions) Outstanding at January 1, 2017 ā 180,680 ā $ 52.61 ā ā ā ā ā Exercised ā (98,405) ā ā 52.41 ā ā ā ā ā Expired or forfeited ā (7,000) ā ā 58.68 ā ā ā ā ā Outstanding at December 31, 2017 ā 75,275 ā ā 52.30 ā ā ā ā ā Exercised ā (48,275) ā ā 57.91 ā ā ā ā ā Expired or forfeited ā (1,000) ā ā 55.73 ā ā ā ā ā Outstanding at December 31, 2018 ā 26,000 ā ā 41.76 ā ā ā ā ā Exercised ā (20,000) ā ā 40.80 ā ā ā ā ā Outstanding at December 31, 2019 ā 6,000 ā $ 44.99 ā 0.4 ā $ 0.4 Exercisable at December 31, 2019 ā 6,000 ā $ 44.99 ā 0.4 ā $ 0.4 |
Summary of certain information concerning outstanding and exercisable options | ā ā ā ā ā ā ā ā ā ā ā ā ā Weighted Average ā ā ā ā ā Outstanding and ā Remaining ā Weighted Average Range of ā Exercisable at ā Contractual Term ā Exercise Price Exercise Price December 31, 2019 (in years) Per Share $44 - $45 ā 6,000 ā 0.4 ā $ 44.99 ā ā ā ā ā ā ā ā |
Summary of the status of the Company's restricted stock units and changes during the year | ā ā ā ā ā ā ā ā ā ā ā Weighted ā ā ā ā Average ā ā ā ā Grant Date ā ā ā ā Fair Value Unvested RSUs ā Shares Per RSU Unvested at January 1, 2019 ā 889,830 ā $ 82.05 Granted ā 488,345 ā ā 88.05 Vested ā (476,634) ā ā 80.18 Canceled or forfeited ā (42,536) ā ā 83.97 Unvested at December 31, 2019 ā 859,005 ā $ 86.40 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefits | |
Summary of benefits payments under the SERPs and Defined Benefit Plans, which reflect expected future employee service, as appropriate, expected to be paid in the future periods | ā ā ā ā ā ā ā ā ā ā ā Defined ā SERPs Benefit Plans ā ā (in millions) 2020 $ 17.5 ā $ 52.0 2021 ā 1.1 ā ā 2.1 2022 ā 10.6 ā ā 2.3 2023 ā 1.0 ā ā 2.5 2024 ā 1.0 ā ā 2.7 2025-2029 ā 4.2 ā ā 16.0 |
Schedule of Company's expense for Reliance-sponsored retirement plans | ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 ā (in millions) Master Plan $ 22.7 ā $ 28.1 ā $ 25.0 Other defined contribution plans ā 9.6 ā ā 9.4 ā ā 9.0 ESOP ā ā ā ā 1.9 ā ā 1.8 Reliance Deferred Compensation Plan ā 5.0 ā ā 0.9 ā ā 0.9 SERPs ā 3.3 ā ā 2.9 ā ā 6.5 Defined Benefit Plans ā 1.5 ā ā 1.8 ā ā 2.7 ā $ 42.1 ā $ 45.0 ā $ 45.9 |
SERPs and Defined Benefit Plans | |
Employee Benefits | |
Summary of the status of the funding of the plans, change in plan assets and items not yet recognized as a component of net periodic pension expense | ā ā ā ā ā ā ā ā ā ā ā ā ā ā SERPs ā Defined Benefit Plans ā 2019 2018 2019 2018 ā (in millions) ā (in millions) Change in benefit obligation ā ā ā ā ā ā ā ā ā ā ā Benefit obligation at beginning of year $ 37.2 ā $ 36.6 ā $ 96.6 ā $ 103.5 Service cost ā 0.9 ā ā 0.9 ā ā 1.6 ā ā 1.7 Interest cost ā 1.4 ā ā 1.1 ā ā 3.8 ā ā 3.5 Actuarial loss (gain) ā 11.4 ā ā (0.3) ā ā 15.9 ā ā (9.3) Benefits paid ā (1.1) ā ā (1.1) ā ā (3.9) ā ā (3.8) Plan amendments ā ā ā ā ā ā ā 2.2 ā ā 1.0 Benefit obligation at end of year $ 49.8 ā $ 37.2 ā $ 116.2 ā $ 96.6 ā ā ā ā ā ā ā ā ā ā ā ā Change in plan assets ā ā ā ā ā ā ā ā ā ā ā Fair value of plan assets at beginning of year ā N/A ā ā N/A ā $ 94.9 ā $ 89.0 Actual return on plan assets ā N/A ā ā N/A ā ā 16.1 ā ā (4.2) Employer contributions ā N/A ā ā N/A ā ā ā ā ā 13.9 Benefits paid ā N/A ā ā N/A ā ā (3.9) ā ā (3.8) Fair value of plan assets at end of year ā N/A ā ā N/A ā $ 107.1 ā $ 94.9 ā ā ā ā ā ā ā ā ā ā ā ā Funded status ā ā ā ā ā ā ā ā ā ā ā Funded status of the plans $ (49.8) ā $ (37.2) ā $ (9.1) ā $ (1.7) ā ā ā ā ā ā ā ā ā ā ā ā Items not yet recognized as component of net periodic pension expense ā ā ā ā ā ā ā ā ā ā ā Unrecognized net actuarial losses $ 19.6 ā $ 9.1 ā $ 27.2 ā $ 23.2 Unamortized prior service cost ā ā ā ā ā ā ā 4.7 ā ā 2.8 ā $ 19.6 ā $ 9.1 ā $ 31.9 ā $ 26.0 |
Schedule of amounts recognized in the statement of financial position | ā ā ā ā ā ā ā ā ā ā ā ā ā ā SERPs ā Defined Benefit Plans ā 2019 2018 2019 2018 ā (in millions) ā (in millions) Amounts recognized in the statement of financial position ā ā ā ā ā ā ā ā ā ā ā Current liabilities $ (17.5) ā $ (1.1) ā $ ā ā $ ā Noncurrent liabilities ā (32.3) ā ā (36.1) ā ā (9.1) ā ā (1.7) Accumulated other comprehensive loss ā 19.6 ā ā 9.1 ā ā 31.9 ā ā 26.0 Net amount recognized $ (30.2) ā $ (28.1) ā $ 22.8 ā $ 24.3 |
Schedule of details of net periodic pension expense | Following are the details of net periodic benefit cost related to the SERPs and Defined Benefit Plans: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā SERPs ā Defined Benefit Plans ā Year Ended December 31, ā Year Ended December 31, ā 2019 2018 2017 2019 2018 2017 ā (in millions) ā (in millions) Service cost $ 0.9 ā $ 0.9 ā $ 0.8 ā $ 1.6 ā $ 1.7 ā $ 1.5 Interest cost ā 1.4 ā ā 1.1 ā ā 1.1 ā ā 3.8 ā ā 3.5 ā ā 3.7 Expected return on plan assets ā ā ā ā ā ā ā ā ā ā (5.6) ā ā (5.1) ā ā (4.4) Settlement loss ā ā ā ā ā ā ā 3.7 ā ā ā ā ā ā ā ā 0.1 Prior service cost ā ā ā ā ā ā ā ā ā ā 0.4 ā ā 0.3 ā ā 0.3 Amortization of net loss ā 1.0 ā ā 0.9 ā ā 0.9 ā ā 1.3 ā ā 1.4 ā ā 1.5 ā $ 3.3 ā $ 2.9 ā $ 6.5 ā $ 1.5 ā $ 1.8 ā $ 2.7 ā Net periodic benefit cost related to the SERPs and Defined Benefit Plans is presented in our statements of income as summarized below: ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā SERPs ā Defined Benefit Plans ā Year Ended December 31, ā Year Ended December 31, ā 2019 2018 2017 2019 2018 2017 ā (in millions) ā (in millions) Amounts recognized in the statement of income ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā Warehouse, delivery, selling, general and administrative expense $ 0.9 ā $ 0.9 ā $ 0.8 ā $ 1.6 ā $ 1.7 ā $ 1.5 Other (income) expense, net ā 2.4 ā ā 2.0 ā ā 5.7 ā ā (0.1) ā ā 0.1 ā ā 1.2 ā $ 3.3 ā $ 2.9 ā $ 6.5 ā $ 1.5 ā $ 1.8 ā $ 2.7 |
Schedule of assumptions used to determine net periodic benefit cost | ā ā ā ā ā ā ā ā ā ā ā ā ā ā ā SERPs ā Defined Benefit Plans ā ā Year Ended December 31, ā Year Ended December 31, ā ā 2019 2018 2017 2019 2018 2017 Weighted average assumptions to determine net cost ā ā ā ā ā ā ā ā ā ā ā ā Discount rate 3.81 % 3.04 % 3.36 % 4.06 % 3.47 % 3.93 % Expected long-term rate of return on plan assets N/A ā N/A ā N/A ā 6.09 % 5.66 % 6.17 % Rate of compensation increase 6.00 % 6.00 % 6.00 % N/A ā N/A ā N/A ā |
Schedule of assumptions used to determine the benefit obligation | ā ā ā ā ā ā ā ā ā ā ā SERPs ā Defined Benefit Plans ā ā December 31, ā December 31, ā ā 2019 2018 2019 2018 Weighted average assumptions to determine benefit obligations ā ā ā ā ā ā ā ā Discount rate 2.63 % 3.82 % 2.59 % 4.06 % Expected long-term rate of return on plan assets N/A ā N/A ā 6.09 % 5.66 % Rate of compensation increase 6.00 % 6.00 % N/A ā N/A ā |
Defined Benefit Plans | |
Employee Benefits | |
Schedule of information for defined benefit plans with an accumulated benefit obligation and projected benefit obligation in excess of plan assets | ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 ā (in millions) Information for defined benefit plans with an accumulated benefit obligation and projected benefit obligation in excess of plan assets ā ā ā ā ā Accumulated benefit obligation $ 116.2 ā $ 53.0 Projected benefit obligation ā 116.2 ā ā 53.0 Fair value of plan assets ā 107.1 ā ā 50.1 |
Schedule of weighted-average asset allocations of the Company's Defined Benefit Plans by asset category | ā ā ā ā ā ā ā December 31, ā ā 2019 2018 ā Plan Assets ā ā ā ā Equity securities 33 % 51 % Debt securities 60 % 45 % Cash and cash equivalents 7 % 4 % Total 100 % 100 % |
Schedule of fair value measurements of Defined Benefit Plans assets | ā ā ā ā ā ā ā ā ā ā ā ā ā ā Level 1 Level 2 Level 3 Total ā (in millions) December 31, 2019: ā ā ā ā ā ā ā ā ā ā ā Common stock (1) $ 25.1 ā $ ā ā $ ā ā $ 25.1 U.S. government, state and agency ā ā ā ā 9.3 ā ā ā ā ā 9.3 Corporate debt securities (2) ā ā ā ā 3.6 ā ā ā ā ā 3.6 Mutual funds (3) ā 59.4 ā ā ā ā ā ā ā ā 59.4 Interest and non-interest bearing cash ā 7.3 ā ā ā ā ā ā ā ā 7.3 Total investments in the fair value hierarchy ā 91.8 ā ā 12.9 ā ā ā ā ā 104.7 Investments measured at net asset value ("NAV") (4) ā ā ā ā ā ā ā ā ā ā 2.4 Total investments at fair value $ 91.8 ā $ 12.9 ā $ ā ā $ 107.1 ā ā ā ā ā ā ā ā ā ā ā ā December 31, 2018: ā ā ā ā ā ā ā ā ā ā ā Common stock (1) $ 27.5 ā $ ā ā $ ā ā $ 27.5 U.S. government, state and agency ā ā ā ā 11.6 ā ā ā ā ā 11.6 Corporate debt securities (2) ā ā ā ā 17.3 ā ā ā ā ā 17.3 Mutual funds (3) ā 32.2 ā ā ā ā ā ā ā ā 32.2 Interest and non-interest bearing cash ā 3.6 ā ā ā ā ā ā ā ā 3.6 Total investments in the fair value hierarchy ā 63.3 ā ā 28.9 ā ā ā ā ā 92.2 Investments measured at net asset value ("NAV") (4) ` ā ā ā ā ā ā ā ā ā 2.7 Total investments at fair value $ 63.3 ā $ 28.9 ā $ ā ā $ 94.9 (1) Comprised primarily of securities of large domestic and foreign companies. Valued at the closing price reported on the active market on which the individual securities are traded. ā (2) Valued using a combination of inputs including: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. ā (3) Level 1 assets are comprised of exchange traded funds, money market funds, and stock and bond funds. These assets are valued at closing price for exchange traded funds and NAV for open-end and closed-end mutual funds. ā (4) Certain investments, including common collective trusts, are measured at fair value using the NAV practical expedient. The fair value of these investments are excluded from the fair value hierarchy and are presented in the tables above to permit reconciliation of the investments classified within the fair value hierarchy to the total investments at fair value. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity | |
Schedule of accumulated other comprehensive loss | ā ā ā ā ā ā ā ā ā ā ā ā ā ā Pension and ā Accumulated ā Foreign Currency ā Postretirement ā Other ā Translation ā Benefit Adjustments, ā Comprehensive ā (Loss) Gain Net of Tax Loss ā (in millions) Balance as of January 1, 2019 $ (76.8) ā $ (25.9) ā $ (102.7) Current-year change ā 12.4 ā ā (14.8) ā ā (2.4) Balance as of December 31, 2019 $ (64.4) ā $ (40.7) ā $ (105.1) |
Other (Income) Expense, net (Ta
Other (Income) Expense, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other (Income) Expense, net | |
Schedule of significant components of other expense, net | ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 ā (in millions) Investment income from life insurance policies $ (74.3) ā $ (67.4) ā $ (66.4) Interest expense on life insurance policy loans ā 73.9 ā ā 70.1 ā ā 66.5 Life insurance policy cost of insurance ā 12.8 ā ā 12.1 ā ā 11.5 Income from life insurance policy redemptions ā (7.8) ā ā (10.3) ā ā (8.5) Foreign currency transaction losses (gains) ā 4.1 ā ā (0.6) ā ā 4.9 Net periodic benefit cost ā components other than service cost ā 2.3 ā ā 2.1 ā ā 6.9 Other, net ā (11.8) ā ā (5.3) ā ā (10.2) ā $ (0.8) ā $ 0.7 ā $ 4.7 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share | |
Computation of basic and diluted earnings per share | ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 ā 2018 ā 2017 ā (in millions, except share amounts which are reflected in thousands and per share amounts) Numerator: ā ā ā ā ā ā ā ā Net income attributable to Reliance $ 701.5 ā $ 633.7 ā $ 613.4 Denominator: ā ā ā ā ā ā ā ā Weighted average shares outstanding ā 66,885 ā ā 71,621 ā ā 72,851 Dilutive effect of stock-based awards ā 970 ā ā 820 ā ā 688 Weighted average diluted shares outstanding ā 67,855 ā ā 72,441 ā ā 73,539 ā ā ā ā ā ā ā ā ā Earnings per share attributable to Reliance stockholders: ā ā ā ā ā ā ā ā Diluted $ 10.34 ā $ 8.75 ā $ 8.34 Basic $ 10.49 ā $ 8.85 ā $ 8.42 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information | |
Schedule of sales, by products or services | ā ā ā ā ā ā ā ā ā 2019 ā 2018 ā 2017 ā Carbon steel 52 % 53 % 52 % Aluminum 19 % 19 % 19 % Stainless steel 14 % 14 % 14 % Alloy 6 % 6 % 6 % Toll processing and logistics 4 % 4 % 4 % Other 5 % 4 % 5 % Total 100 % 100 % 100 % |
Summary of the Company's operations by geographic location based on where sales originated from | ā ā ā ā ā ā ā ā ā ā ā United States Foreign Countries Total ā (in millions) Year Ended December 31, 2019: ā ā ā ā ā ā ā ā Net sales $ 10,099.2 ā $ 874.6 ā $ 10,973.8 Long-lived assets ā 4,776.7 ā ā 344.2 ā ā 5,120.9 Year Ended December 31, 2018: ā ā ā ā ā ā ā ā Net sales ā 10,638.4 ā ā 896.1 ā ā 11,534.5 Long-lived assets ā 4,431.8 ā ā 328.1 ā ā 4,759.9 Year Ended December 31, 2017: ā ā ā ā ā ā ā ā Net sales ā 8,847.3 ā ā 873.7 ā ā 9,721.0 Long-lived assets ā 4,353.7 ā ā 346.0 ā ā 4,699.7 |
Impairment and Restructuring _2
Impairment and Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Impairment and Restructuring Charges | |
Schedule of impairment and restructuring charges | ā ā ā ā ā ā ā ā ā ā ā Year Ended December 31, ā 2019 2018 2017 (in millions) Property, plant and equipment $ 1.2 ā $ 3.8 ā $ 4.2 Intangible assets, net ā ā ā ā 33.2 ā ā ā Total impairment charges ā 1.2 ā ā 37.0 ā ā 4.2 Restructuring cost of sales ā ā ā ā ā ā ā (0.2) Restructuring warehouse, delivery, selling, general and administrative expense ā ā ā ā 2.5 ā ā 0.1 Total impairment and restructuring charges $ 1.2 ā $ 39.5 ā $ 4.1 |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information (Unaudited) | |
Summary of the unaudited quarterly results of operations | ā ā ā ā ā ā ā ā ā ā ā ā ā ā Quarter Ended ā December 31, September 30, June 30, March 31, ā (in millions, except per share amounts) 2019: ā ā ā ā ā ā ā ā ā ā ā Net sales $ 2,447.8 $ 2,685.9 $ 2,883.5 $ 2,956.6 Cost of sales ā 1,653.6 ā ā 1,871.2 ā ā 2,029.9 ā ā 2,089.7 Gross profit (1) ā 794.2 ā ā 814.7 ā ā 853.6 ā ā 866.9 Net income ā 166.3 ā ā 163.9 ā ā 184.3 ā ā 191.6 Net income attributable to Reliance ā 165.6 ā ā 162.7 ā ā 183.1 ā ā 190.1 Earnings per share attributable to Reliance stockholders: ā ā ā ā ā ā ā ā ā ā ā Diluted ā 2.44 ā ā 2.40 ā ā 2.69 ā ā 2.80 Basic ā 2.48 ā ā 2.44 ā ā 2.73 ā ā 2.83 ā ā ā ā ā ā ā ā ā ā ā ā 2018: ā ā ā ā ā ā ā ā ā ā ā Net sales $ 2,814.0 $ 2,974.5 $ 2,988.9 $ 2,757.1 Cost of sales ā 2,104.2 ā ā 2,140.2 ā ā 2,071.4 ā ā 1,937.2 Gross profit (1) ā 709.8 ā ā 834.3 ā ā 917.5 ā ā 819.9 Net income ā 87.3 ā ā 150.3 ā ā 233.1 ā ā 171.1 Net income attributable to Reliance ā 85.6 ā ā 148.3 ā ā 230.8 ā ā 169.0 Earnings per share attributable to Reliance stockholders: ā ā ā ā ā ā ā ā ā ā ā Diluted ā 1.22 ā ā 2.03 ā ā 3.16 ā ā 2.30 Basic ā 1.23 ā ā 2.06 ā ā 3.19 ā ā 2.32 (1) Gross profit, calculated as net sales less cost of sales, is a non-GAAP financial measure as it excludes depreciation and amortization expense associated with the corresponding sales. About half of our orders are basic distribution with no processing services performed. For the remainder of our sales orders, we perform āfirst-stageā processing, which is generally not labor intensive as we are simply cutting the metal to size. Because of this, the amount of related labor and overhead, including depreciation and amortization, is not significant and is excluded from cost of sales. Therefore, our cost of sales is substantially comprised of the cost of the material we sell. We use gross profit as shown above as a measure of operating performance. Gross profit is an important operating and financial measure, as fluctuations in gross profit can have a significant impact on our earnings. Gross profit, as presented, is not necessarily comparable with similarly titled measures for other companies. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Business (Details) | 12 Months Ended |
Dec. 31, 2019item | |
Summary of Significant Accounting Policies | |
Minimum number of locations in which company operates metal service center network | 300 |
Number of states in which the company operates metal service center network | 40 |
Number of countries in which entity operates outside the U.S. | 13 |
Minimum number of products the company distributes | 100,000 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Values of Financial Instruments | ||
Total carrying value of debt | $ 1,596.3 | $ 2,214.2 |
Senior Unsecured Notes | ||
Fair Values of Financial Instruments | ||
Carrying value, before deducting unamortized discount or premiums | 750 | 750 |
Carrying value | 745.6 | 744.8 |
Senior Unsecured Notes | Level 2 | ||
Fair Values of Financial Instruments | ||
Fair value | $ 840 | $ 780 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Goodwill and Other Indefinite-Lived Intangible Assets (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)segmentitem | Dec. 31, 2018USD ($)itemsegment | Dec. 31, 2017USD ($)segmentitem | |
Goodwill and Other Indefinite-Lived Intangible Assets | |||
Number of operating segments | segment | 1 | 1 | 1 |
Number of reportable segments | item | 1 | 1 | 1 |
Impairment of goodwill | $ 0 | $ 0 | $ 0 |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 16.5 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Long-Lived Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment | |||
Impairment loss of property, plant and equipment | $ 1.2 | $ 3.8 | $ 4.2 |
Impairment losses of intangible assets, finite-lived | $ 16.7 | ||
Buildings | Minimum | |||
Property, Plant and Equipment | |||
Useful lives | 5 years | ||
Buildings | Maximum | |||
Property, Plant and Equipment | |||
Useful lives | 50 years | ||
Machinery and equipment | Minimum | |||
Property, Plant and Equipment | |||
Useful lives | 3 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment | |||
Useful lives | 20 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Revenue Recognition, Share-Based Compensation and Foreign Currencies (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Revenue Recognition | |||
Number of performance obligations from sales of metal products | item | 1 | ||
Shipping and handling costs included in operating expenses | $ 404.1 | $ 412.7 | $ 372.3 |
Share-Based Compensation | |||
Stock-based compensation expense | 51.2 | 45.5 | 33.4 |
Foreign Currencies | |||
Net gain (loss) resulting from foreign currency transactions | $ (4.1) | $ 0.6 | $ (4.9) |
Toll processing and logistics | |||
Revenue Recognition | |||
Number Of Days To Perform Services | 1 day |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Income Taxes (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of Significant Accounting Policies | |||
U.S. federal statutory tax rate (as a percent) | 21.00% | 21.00% | 35.00% |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Impact of Recently Issued Accounting Standards (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 |
Impact of Recently Issued Accounting Standards-Adopted | ||
Operating lease right-of-use assets | $ 201.5 | |
Operating lease liability | $ 202 | |
Restated Amount | ASU 2016-02 Leases | ||
Impact of Recently Issued Accounting Standards-Adopted | ||
Operating lease right-of-use assets | $ 186.3 | |
Operating lease liability | $ 187.1 |
Acquisitions (Details)
Acquisitions (Details) $ in Millions | 12 Months Ended | ||||||
Dec. 31, 2019USD ($)location | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Nov. 01, 2018location | Oct. 23, 2018 | Oct. 22, 2018 | Dec. 31, 2016USD ($) | |
Acquisitions | |||||||
Net sales | $ 10,973.8 | $ 11,534.5 | $ 9,721 | ||||
Allocation of the total purchase price of the acquisitions to the fair value of the assets acquired and liabilities assumed | |||||||
Goodwill | 2,003.8 | 1,870.8 | 1,842.6 | $ 1,827.4 | |||
Summary purchase price allocation information for all acquisitions | |||||||
Tax deductible goodwill amount | 817.4 | ||||||
Trade names | |||||||
Allocation of the total purchase price of the acquisitions to the fair value of the assets acquired and liabilities assumed | |||||||
Intangible assets not subject to amortization | 18.3 | 3.7 | |||||
Summary purchase price allocation information for all acquisitions | |||||||
Intangible assets not subject to amortization | 18.3 | 3.7 | |||||
Customer relationships | |||||||
Summary purchase price allocation information for all acquisitions | |||||||
Intangible assets acquired subject to amortization | $ 24.8 | $ 3.7 | |||||
Weighted average lives of identifiable intangible assets | 10 years | 10 years | |||||
Fry Steel | |||||||
Allocation of the total purchase price of the acquisitions to the fair value of the assets acquired and liabilities assumed | |||||||
Cash | 17.1 | ||||||
Accounts receivable | 5.7 | ||||||
Inventories | 38.8 | ||||||
Property, plant and equipment | 6.4 | ||||||
Goodwill | 130.8 | ||||||
Other current and long-term assets | 0.2 | ||||||
Total assets acquired | 199 | ||||||
Other current and long-term liabilities | 5.1 | ||||||
Total liabilities assumed | 5.1 | ||||||
Net assets acquired | 193.9 | ||||||
All Metals | |||||||
Acquisitions | |||||||
Net sales | 29.7 | ||||||
Locations acquiree provides logistics services from | location | 6 | ||||||
Acero Prime S. de R.L. de C.V. | |||||||
Acquisitions | |||||||
Net sales | $ 44.8 | ||||||
Ownership interest acquired (as a percent) | 40.00% | ||||||
Ownership interest prior to acquisition (as a percent) | 60.00% | ||||||
Total ownership percentage (as a percent) | 100.00% | ||||||
Number of locations of the acquiree entity | location | 4 | ||||||
Summary Information for Equity Method Transaction | |||||||
Consideration paid for additional ownership percentage | $ 29 | ||||||
Decrease in noncontrolling interest | 19.7 | ||||||
Decrease in Reliance Stockholder's equity | 9.3 | ||||||
KMS | |||||||
Acquisitions | |||||||
Net sales | $ 32.6 | ||||||
DuBose | |||||||
Acquisitions | |||||||
Net sales | 42.9 | ||||||
All Metals, DuBose and KMS | |||||||
Allocation of the total purchase price of the acquisitions to the fair value of the assets acquired and liabilities assumed | |||||||
Cash | 2.4 | ||||||
Accounts receivable | 13.1 | ||||||
Inventories | 10 | ||||||
Property, plant and equipment | 20.1 | ||||||
Goodwill | 32.9 | ||||||
Intangible assets subject to amortization | 25 | ||||||
Intangible assets not subject to amortization | 18.3 | ||||||
Other current and long-term assets | 1.1 | ||||||
Total assets acquired | 122.9 | ||||||
Current and long-term debt | 25.9 | ||||||
Deferred taxes | 5.4 | ||||||
Other current and long-term liabilities | 9.6 | ||||||
Total liabilities assumed | 40.9 | ||||||
Net assets acquired | 82 | ||||||
Summary purchase price allocation information for all acquisitions | |||||||
Intangible assets not subject to amortization | $ 18.3 | ||||||
Ferguson | |||||||
Acquisitions | |||||||
Sales since acquisition date | 37.2 | ||||||
2019 Acquisitions | |||||||
Summary purchase price allocation information for all acquisitions | |||||||
Tax deductible goodwill amount | $ 131 |
Joint Ventures and Noncontrol_2
Joint Ventures and Noncontrolling Interests (Details) | 12 Months Ended | |
Dec. 31, 2019 | Oct. 22, 2018 | |
Eagle Steel Products, Inc. | ||
Joint Ventures and Noncontrolling Interests | ||
Ownership percentage in equity method investment sold | 45.00% | |
Oregon Feralloy Partners LLC | ||
Joint Ventures and Noncontrolling Interests | ||
Ownership percentage in equity method investment | 40.00% | |
Acero Prime S. de R.L. de C.V. | ||
Joint Ventures and Noncontrolling Interests | ||
Ownership percentage in consolidated investments other than equity method investment | 100.00% | 60.00% |
Feralloy Processing Company | ||
Joint Ventures and Noncontrolling Interests | ||
Ownership percentage in consolidated investments other than equity method investment | 51.00% | |
Indiana Pickling & Processing Company | ||
Joint Ventures and Noncontrolling Interests | ||
Ownership percentage in consolidated investments other than equity method investment | 56.00% | |
Valex Corp. | South Korea | ||
Joint Ventures and Noncontrolling Interests | ||
Ownership percentage in consolidated investments other than equity method investment | 96.00% | |
Minimum | ||
Joint Ventures and Noncontrolling Interests | ||
Ownership percentage in equity method investment | 20.00% | |
Percentage of ownership for consolidation of financial statements | 50.00% | |
Maximum | ||
Joint Ventures and Noncontrolling Interests | ||
Ownership percentage in equity method investment | 50.00% |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Inventories | |||
LIFO inventories - cost on FIFO method | $ 1,387.7 | $ 1,737.3 | |
Cost on FIFO method higher than LIFO value | (137.6) | (293.6) | |
Inventories - stated on LIFO method | 1,250.1 | 1,443.7 | |
Inventories - stated on FIFO method | 395.6 | 373.4 | |
Inventories | 1,645.7 | 1,817.1 | |
LIFO inventory valuation reserve adjustment (income) charge | (156) | $ 271.8 | $ 73.3 |
Liquidation of LIFO inventory quantities that decreased cost of sales | $ (11.6) |
Revenues (Details)
Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue Disaggregation | |||||||||||
Revenue | $ 2,447.8 | $ 2,685.9 | $ 2,883.5 | $ 2,956.6 | $ 2,814 | $ 2,974.5 | $ 2,988.9 | $ 2,757.1 | $ 10,973.8 | $ 11,534.5 | $ 9,721 |
Before adoption of ASU 2014-09 | |||||||||||
Revenue Disaggregation | |||||||||||
Revenue | 9,721 | ||||||||||
Carbon steel | |||||||||||
Revenue Disaggregation | |||||||||||
Revenue | 5,792.9 | 6,285.8 | |||||||||
Carbon steel | Before adoption of ASU 2014-09 | |||||||||||
Revenue Disaggregation | |||||||||||
Revenue | 5,189.6 | ||||||||||
Aluminum | |||||||||||
Revenue Disaggregation | |||||||||||
Revenue | 2,151.9 | 2,210.9 | |||||||||
Aluminum | Before adoption of ASU 2014-09 | |||||||||||
Revenue Disaggregation | |||||||||||
Revenue | 1,916.9 | ||||||||||
Stainless steel | |||||||||||
Revenue Disaggregation | |||||||||||
Revenue | 1,578 | 1,636.1 | |||||||||
Stainless steel | Before adoption of ASU 2014-09 | |||||||||||
Revenue Disaggregation | |||||||||||
Revenue | 1,386.3 | ||||||||||
Alloy | |||||||||||
Revenue Disaggregation | |||||||||||
Revenue | 652.1 | 680.7 | |||||||||
Alloy | Before adoption of ASU 2014-09 | |||||||||||
Revenue Disaggregation | |||||||||||
Revenue | 587.8 | ||||||||||
Toll processing and logistics | |||||||||||
Revenue Disaggregation | |||||||||||
Revenue | 450.7 | 415.3 | |||||||||
Toll processing and logistics | Before adoption of ASU 2014-09 | |||||||||||
Revenue Disaggregation | |||||||||||
Revenue | 362.1 | ||||||||||
Other | |||||||||||
Revenue Disaggregation | |||||||||||
Revenue | $ 348.2 | $ 305.7 | |||||||||
Other | Before adoption of ASU 2014-09 | |||||||||||
Revenue Disaggregation | |||||||||||
Revenue | $ 278.3 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in the carrying amount of goodwill | |||
Balance at the beginning of the year | $ 1,870.8 | $ 1,842.6 | $ 1,827.4 |
Acquisitions | 131.8 | 33.8 | 10.3 |
Purchase price allocation adjustments | (1.9) | ||
Foreign currency translation gains (losses) | 3.1 | (5.6) | 4.9 |
Balance at the end of the year | 2,003.8 | $ 1,870.8 | $ 1,842.6 |
Accumulated impairment losses | 0 | ||
Goodwill, tax deductible amount | 817.4 | ||
2019 Acquisitions | |||
Change in the carrying amount of goodwill | |||
Goodwill, tax deductible amount | $ 131 |
Intangible Assets, net (Details
Intangible Assets, net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Intangible assets subject to amortization: | |||
Intangible assets subject to amortization, Gross Carrying Amount | $ 720 | $ 717.2 | |
Intangible assets subject to amortization, Accumulated Amortization | (447.5) | (402.8) | |
Intangible assets | |||
Intangible assets, Gross Carrying Amount | 1,478.6 | 1,474.8 | |
Amortization expense for intangible assets | 43.1 | 45.8 | $ 50.6 |
Changes in intangible assets due to foreign currency translation gains (losses) | 2.2 | ||
Impairment losses of intangible assets, indefinite-lived | 16.5 | ||
Impairment losses of intangible assets, finite-lived | 16.7 | ||
Summary of estimated aggregate amortization expense for each of the succeeding five years | |||
2020 | 43.2 | ||
2021 | 41.5 | ||
2022 | 36.7 | ||
2023 | 30.7 | ||
2024 | 27.2 | ||
Trade names | |||
Intangible assets not subject to amortization: | |||
Intangible assets not subject to amortization, Gross Carrying Amount | $ 758.6 | 757.6 | |
Intangible assets | |||
Impairment losses of intangible assets, indefinite-lived | 16.5 | ||
Covenants not to compete | |||
Intangible assets subject to amortization: | |||
Weighted average amortizable life in years | 5 years | ||
Intangible assets subject to amortization, Gross Carrying Amount | $ 0.7 | 0.8 | |
Intangible assets subject to amortization, Accumulated Amortization | $ (0.4) | (0.4) | |
Customer lists/relationships | |||
Intangible assets subject to amortization: | |||
Weighted average amortizable life in years | 15 years | ||
Intangible assets subject to amortization, Gross Carrying Amount | $ 710.1 | 707.3 | |
Intangible assets subject to amortization, Accumulated Amortization | $ (438.1) | (393.4) | |
Intangible assets | |||
Impairment losses of intangible assets, finite-lived | 16.7 | ||
Software | |||
Intangible assets subject to amortization: | |||
Weighted average amortizable life in years | 10 years | ||
Intangible assets subject to amortization, Gross Carrying Amount | $ 8.1 | 8.1 | |
Intangible assets subject to amortization, Accumulated Amortization | $ (8.1) | (8.1) | |
Other | |||
Intangible assets subject to amortization: | |||
Weighted average amortizable life in years | 7 years 7 months 6 days | ||
Intangible assets subject to amortization, Gross Carrying Amount | $ 1.1 | 1 | |
Intangible assets subject to amortization, Accumulated Amortization | $ (0.9) | $ (0.9) |
Cash Surrender Value of Life _2
Cash Surrender Value of Life Insurance Policies, net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Information about cash surrender value of life insurance policies | |||
Cash surrender value of all life insurance policies, net of loans and related accrued interest | $ 42.7 | $ 43.6 | |
Borrowed portion | |||
Information about cash surrender value of life insurance policies | |||
Amount of borrowed funds against cash surrender value of certain life insurance policies used to pay premiums and accrued interest owed | 56 | 56.1 | $ 49.9 |
Paid premiums and accrued interest on loans against policies | $ 71.7 | 70.8 | $ 64 |
Earle M. Jorgensen Company ("EMJ") | Borrowed portion | |||
Information about cash surrender value of life insurance policies | |||
Interest on borrowings against cash surrender value of certain life insurance policies (as a percent) | 11.76% | ||
Rate at which the portion of the policy cash surrender value earns interest and dividend income (as a percent) | 11.26% | ||
Loans and accrued interest outstanding on EMJ's life insurance policies | $ 684 | $ 636.8 | |
Earle M. Jorgensen Company ("EMJ") | Unborrowed portion | Minimum | |||
Information about cash surrender value of life insurance policies | |||
Rate at which the portion of the policy cash surrender value earns interest and dividend income (as a percent) | 4.00% |
Debt - Summary (Details)
Debt - Summary (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt | ||
Total | $ 1,596.3 | $ 2,214.2 |
Less: unamortized discount and debt issuance costs | (7.8) | (10.5) |
Less: amounts due within one year and short-term borrowings | (64.9) | (65.2) |
Total long-term debt | 1,523.6 | 2,138.5 |
Unsecured revolving credit facility due September 30, 2021 | ||
Debt | ||
Total | 368 | 925 |
Unsecured term loan due from March 31, 2020 to September 30, 2021 | ||
Debt | ||
Total | 465 | 525 |
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 | $ 13.3 | $ 14.2 |
Debt - Other (Details)
Debt - Other (Details) $ in Millions | Apr. 12, 2013USD ($) | Sep. 30, 2016USD ($) | Nov. 30, 2006USD ($)tranche | Sep. 30, 2019 | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Nov. 15, 2016USD ($) |
Debt | |||||||
Total | $ 1,596.3 | $ 2,214.2 | |||||
Aggregate maturities of long-term debt for each of the next five years and thereafter | |||||||
2020 | 64.9 | ||||||
2021 | 773.7 | ||||||
2022 | 0.3 | ||||||
2023 | 506 | ||||||
2024 | 0.3 | ||||||
Thereafter | 251.1 | ||||||
Credit Agreement | |||||||
Debt | |||||||
Maximum borrowing capacity | $ 2,100 | ||||||
Debt term | 5 years | ||||||
Unsecured revolving credit facility due September 30, 2021 | |||||||
Debt | |||||||
Maximum borrowing capacity | $ 1,500 | ||||||
Total | $ 368 | $ 925 | |||||
Additional maximum borrowing capacity under the credit agreement subject to approval of the lenders and certain other conditions | 500 | ||||||
Commitment fee on unused portion of revolving credit facility (as a percent) | 0.125% | ||||||
Weighted average fixed interest rate (as a percent) | 3.69% | 3.86% | |||||
Letters of credit outstanding | $ 37.5 | ||||||
Available on the revolving credit facility | 1,090 | ||||||
Unsecured term loan due from March 31, 2020 to September 30, 2021 | |||||||
Debt | |||||||
Maximum borrowing capacity | $ 600 | ||||||
Total | $ 465 | $ 525 | |||||
Annual amortization of term loan thereafter until June 2021 (as a percent) | 10.00% | ||||||
Interest rate added to base rate adjustment (as a percent) | (0.25%) | ||||||
Weighted average fixed interest rate (as a percent) | 2.80% | 3.77% | |||||
Borrowings under the Credit Agreement due September 30, 2021 | LIBOR | |||||||
Debt | |||||||
Variable interest rate | LIBOR | ||||||
Interest rate added to base (as a percent) | 1.00% | ||||||
Borrowings under the Credit Agreement due September 30, 2021 | Bank prime rate | |||||||
Debt | |||||||
Variable interest rate | bank prime rate | ||||||
Senior Unsecured Notes | |||||||
Debt | |||||||
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% | ||||||
Senior unsecured notes issued November 20, 2006 | |||||||
Debt | |||||||
Issuance of debt | $ 600 | ||||||
Number of tranches comprising the debt issuance | tranche | 2 | ||||||
Senior unsecured notes due November 15, 2016 | |||||||
Debt | |||||||
Total | $ 0 | ||||||
Interest rate (as a percent) | 6.20% | ||||||
Lump sum payment on maturity | $ 350 | ||||||
Issuance of debt | $ 350 | ||||||
Senior unsecured notes due April 15, 2023 | |||||||
Debt | |||||||
Total | $ 500 | $ 500 | |||||
Interest rate (as a percent) | 4.50% | ||||||
Issuance of debt | $ 500 | ||||||
Senior unsecured notes due November 15, 2036 | |||||||
Debt | |||||||
Total | 250 | 250 | |||||
Interest rate (as a percent) | 6.85% | ||||||
Issuance of debt | $ 250 | ||||||
Other notes and revolving credit facilities | |||||||
Debt | |||||||
Maximum borrowing capacity | 9.9 | ||||||
Other notes and revolving credit facilities | Asia | |||||||
Debt | |||||||
Lines of credit | 4.3 | 4.7 | |||||
IRB | |||||||
Debt | |||||||
Total | $ 9 | $ 9.5 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases | |||
Operating lease cost | $ 84.4 | $ 82.7 | $ 77.9 |
Operating lease cost from related parties | 2.5 | 4.1 | $ 3.4 |
Cash payments for operating leases | 84.6 | ||
Right-of-use assets obtained in exchange for operating lease obligations | $ 71.1 | ||
Weighted average remaining lease term - operating leases | 5 years 7 months 6 days | ||
Weighted average discount rate - operating leases | 4.30% | ||
Maturities of operating lease liabilities | |||
2020 | $ 59.6 | ||
2021 | 47.8 | ||
2022 | 35.9 | ||
2023 | 27.5 | ||
2024 | 20.7 | ||
Thereafter | 39.6 | ||
Total operating lease payments | 231.1 | ||
Less: imputed interest | (29.1) | ||
Total operating lease liabilities | $ 202 | ||
Maturities of non-cancellable operating leases under ASC 840. | |||
2019 | 59.5 | ||
2020 | 45.5 | ||
2021 | 32.9 | ||
2022 | 22.7 | ||
2023 | 16.2 | ||
Thereafter | 40.7 | ||
Total operating lease payments | $ 217.5 |
Income Taxes - Summary, Reconci
Income Taxes - Summary, Reconciliation and Other (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
Federal | $ 136.3 | $ 150.6 | $ 117.8 |
State | 37.9 | 47.6 | 21.5 |
Foreign | 16.5 | 19.7 | 16.1 |
Total | 190.7 | 217.9 | 155.4 |
Deferred: | |||
Federal | 26.9 | (6) | (202.8) |
State | 7.2 | (2.3) | 11.1 |
Foreign | (1.6) | (0.8) | (0.9) |
Total | 32.5 | (9.1) | (192.6) |
Income tax provision | 223.2 | 208.8 | (37.2) |
Components of U.S. and international income before income taxes | |||
US | 877.4 | 775.2 | 524.6 |
International | 51.9 | 75.4 | 59.2 |
Income before income taxes | $ 929.3 | $ 850.6 | $ 583.8 |
Reconciliation of income tax at the U.S. federal statutory tax rates to income tax expense | |||
Income tax at U.S. federal statutory tax rate (as a percent) | 21.00% | 21.00% | 35.00% |
Tax Reform (as a percent) | 0.40% | (35.50%) | |
State income tax, net of federal tax effect (as a percent) | 3.60% | 3.60% | 3.80% |
Foreign earnings taxed at higher (lower) rates (as a percent) | 0.40% | 0.40% | (0.70%) |
Net effect of life insurance policies (as a percent) | (1.50%) | (1.50%) | (3.60%) |
Net effect of changes in unrecognized tax benefits (as a percent) | (0.20%) | (0.20%) | |
Stock-based compensation (as a percent) | 0.70% | 0.60% | (0.20%) |
Domestic production activity deduction (as a percent) | (1.60%) | ||
Loss on sale of assets (as a percent) | (0.80%) | ||
Other, net (as a percent) | (0.20%) | 0.20% | (2.60%) |
Effective tax rate (as a percent) | 24.00% | 24.50% | (6.40%) |
Deferred tax assets: | |||
Accrued expenses not currently deductible for tax | $ 31.6 | $ 26 | |
Inventory costs capitalized for tax purposes | 13.1 | 27.1 | |
Share-based compensation | 8.2 | 7.2 | |
Allowance for doubtful accounts | 4.9 | 5.4 | |
Tax credits carryforwards | 1.4 | 1 | |
Net operating loss carryforwards | 4.2 | 6 | |
Total deferred tax assets | 63.4 | 72.7 | |
Deferred tax liabilities: | |||
Property, plant and equipment, net | (189.1) | (175.4) | |
Goodwill and other intangible assets | (311.6) | (308.8) | |
LIFO inventories | (23.2) | (21.1) | |
Other | (8.8) | (7.5) | |
Total deferred tax liabilities | (532.7) | (512.8) | |
Net deferred tax liabilities | (469.3) | (440.1) | |
Tax Cuts and Jobs Act of 2017 | |||
Effect of tax rate changes on deferred tax assets and liabilities | $ 216.7 | ||
One time transition tax | 9.4 | ||
Tax benefit, net | $ 207.3 | ||
Completed tax benefit, net | $ 3.2 | ||
State | |||
Income Taxes | |||
Operating Loss Carryforwards | $ 4.1 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits | |||
Balance at the beginning of the year | $ 2.4 | $ 4.1 | $ 5.2 |
Increases in tax positions for prior years | 0.8 | 0.4 | |
Decreases in tax positions for prior years | (0.1) | ||
Settlements | (0.7) | (0.2) | |
Lapse of statute of limitations | (0.3) | (2.1) | (0.8) |
Balance at the end of the year | 2.2 | 2.4 | $ 4.1 |
Unrecognized tax benefits, if recognized, would affect the effective tax rate | 2.2 | ||
Accrued interest and penalties on uncertain tax positions | $ 0.5 | $ 0.5 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based compensation plans | |||
Shares authorized for future grant | 1,125,344 | ||
Stock options | |||
Number of shares | |||
Outstanding at the beginning of the year (in shares) | 26,000 | 75,275 | 180,680 |
Exercised (in shares) | (20,000) | (48,275) | (98,405) |
Expired or forfeited (in shares) | (1,000) | (7,000) | |
Outstanding at the end of the year (in shares) | 6,000 | 26,000 | 75,275 |
Exercisable at the end of the year (in shares) | 6,000 | ||
Weighted Average Exercise Price | |||
Outstanding at the beginning of the year, Weighted Average Exercise Price (in dollars per share) | $ 41.76 | $ 52.30 | $ 52.61 |
Exercised, Weighted Average Exercise Price (in dollars per share) | 40.80 | 57.91 | 52.41 |
Expired or forfeited, Weighted Average Exercise Price (in dollars per share) | 55.73 | 58.68 | |
Outstanding at the end of the year, Weighted Average Exercise Price (in dollars per share) | 44.99 | $ 41.76 | $ 52.30 |
Exercisable at the end of the year, Weighted Average Exercise Price (in dollars per share) | $ 44.99 | ||
Weighted Average Remaining Contractual Term | |||
Weighted Average Remaining Contractual Term, stock options outstanding (in years) | 4 months 24 days | ||
Weighted Average Remaining Contractual Term, stock options exercisable (in years) | 4 months 24 days | ||
Aggregate Intrinsic Value | |||
Aggregate Intrinsic Value, options outstanding | $ 0.4 | ||
Aggregate Intrinsic Value, options exercisable | $ 0.4 | ||
Changes in non-vested stock options | |||
Non-vested | 0 | 0 | |
Additional share-based compensation disclosures | |||
Proceed from option exercises | $ 0.8 | $ 2.8 | $ 5.2 |
Total intrinsic value of all options exercised | 1 | 1.6 | 2.8 |
Tax benefit realized from option and RSU exercises | $ 5.5 | $ 4.9 | $ 8.4 |
Stock options | Non-employee director | |||
Additional share-based compensation disclosures | |||
Vesting period (in years) | 1 year | ||
Options with ten-year term | Non-employee director | |||
Additional share-based compensation disclosures | |||
Vesting period (in years) | 10 years |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans - Outstanding and Exercisable Options (Details) - Range of Exercise Price $44 - $45 - Stock options | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Stock Option Plans | |
Range of Exercise Price, Lower limit (in dollars per share) | $ 44 |
Range of Exercise Price, Upper limit (in dollars per share) | $ 45 |
Outstanding, options (in shares) | shares | 6,000 |
Weighted Average Remaining Contractual Term | 4 months 24 days |
Weighted Average Exercise Price Per Share (in dollars per share) | $ 44.99 |
Options Exercisable (in shares) | shares | 6,000 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans - RSUs (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Additional share-based compensation disclosures | |||||
Total unrecognized compensation cost | $ 52.9 | ||||
Weighted average recognition period for unrecognized compensation cost (in years) | 1 year 4 months 24 days | ||||
RSUs, 2019 grant | |||||
Shares | |||||
Awards granted (in shares) | 488,345 | ||||
The number of grants made during the period on the basis of 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). | 194,155 | ||||
Fair value of restricted stock granted (in dollars per share) | $ 88.05 | ||||
Share of common stock | 1 | ||||
Changes | |||||
Granted (in shares) | 488,345 | ||||
Weighted Average Grant Date Fair Value | |||||
Granted (in dollars per share) | $ 88.05 | ||||
RSUs, 2018 grant | |||||
Shares | |||||
Awards granted (in shares) | 474,715 | ||||
The number of grants made during the period on the basis of 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). | 178,970 | ||||
Fair value of restricted stock granted (in dollars per share) | $ 84.26 | ||||
Share of common stock | 1 | ||||
Changes | |||||
Granted (in shares) | 474,715 | ||||
Weighted Average Grant Date Fair Value | |||||
Granted (in dollars per share) | $ 84.26 | ||||
RSUs, 2017 grant | |||||
Shares | |||||
Awards granted (in shares) | 446,525 | ||||
The number of grants made during the period on the basis of 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). | 169,009 | ||||
Fair value of restricted stock granted (in dollars per share) | $ 79.60 | ||||
Share of common stock | 1 | ||||
Changes | |||||
Granted (in shares) | 446,525 | ||||
Weighted Average Grant Date Fair Value | |||||
Granted (in dollars per share) | $ 79.60 | ||||
Unvested RSUs | |||||
Shares | |||||
Awards granted (in shares) | 488,345 | ||||
Fair value of restricted stock granted (in dollars per share) | $ 88.05 | ||||
Changes | |||||
Unvested at the beginning of the year (in shares) | 859,005 | 889,830 | |||
Granted (in shares) | 488,345 | ||||
Vested (in shares) | (476,634) | ||||
Cancelled or forfeited (in shares) | (42,536) | ||||
Unvested at the end of the year (in shares) | 859,005 | 889,830 | |||
Weighted Average Grant Date Fair Value | |||||
Unvested at the beginning of the year (in dollars per share) | $ 86.40 | $ 82.05 | |||
Granted (in dollars per share) | 88.05 | ||||
Vested (in dollars per share) | 80.18 | ||||
Cancelled or forfeited (in dollars per share) | 83.97 | ||||
Unvested at the end of the year (in dollars per share) | $ 86.40 | $ 82.05 | |||
Additional share-based compensation disclosures | |||||
Fair value of vested units | $ 56.5 | $ 34.6 | $ 40.1 | ||
Restricted stock | |||||
Shares | |||||
Payments to tax authorities on employees' behalf for shares withheld related to share settlements | $ 16.2 | $ 12.3 | $ 9.3 | ||
Performance-based | RSU's | |||||
Shares | |||||
Performance target period (in years) | 3 years | 3 years | 3 years | ||
Directors Equity Plan | Stock Awards | |||||
Shares | |||||
Awards granted (in shares) | 11,640 | 13,880 | 18,120 | ||
Fair value of restricted stock granted (in dollars per share) | $ 89.34 | $ 93.65 | $ 71.73 | ||
Changes | |||||
Granted (in shares) | 11,640 | 13,880 | 18,120 | ||
Weighted Average Grant Date Fair Value | |||||
Granted (in dollars per share) | $ 89.34 | $ 93.65 | $ 71.73 |
Employee Benefits - Defined Con
Employee Benefits - Defined Contribution Plan Information (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Defined Contribution Plans | |
Eligibility period of service | 3 months |
Vesting percentage per year | 25.00% |
Employee Benefits - Summary of
Employee Benefits - Summary of SERPs and Defined Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Benefits | |||
Balances in Deferred Compensation Plan | $ 31.4 | $ 21.8 | |
Value of assets for funding future payouts under the deferred compensation plan | 26.5 | 21.1 | |
Contributions to Multiemployer Plans | 5.7 | 5.4 | $ 5.4 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 94.9 | ||
Fair value of plan assets at end of year | 107.1 | 94.9 | |
Amounts recognized in the statement of financial position | |||
Noncurrent liabilities | (87) | (71.8) | |
SERPs | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 37.2 | 36.6 | |
Service cost | 0.9 | 0.9 | 0.8 |
Interest cost | 1.4 | 1.1 | 1.1 |
Actuarial loss (gain) | 11.4 | (0.3) | |
Benefits paid | (1.1) | (1.1) | |
Benefit obligation at end of year | 49.8 | 37.2 | 36.6 |
Funded status | |||
Funded status of the plans | (49.8) | (37.2) | |
Items not yet recognized as component of net periodic pension expense | |||
Unrecognized net actuarial losses | 19.6 | 9.1 | |
Accumulated other comprehensive loss | 19.6 | 9.1 | |
Amounts recognized in the statement of financial position | |||
Current liabilities | (17.5) | (1.1) | |
Noncurrent liabilities | (32.3) | (36.1) | |
Accumulated other comprehensive loss | 19.6 | 9.1 | |
Net amount recognized | (30.2) | (28.1) | |
Accumulated benefit obligation | 42 | 32.5 | |
Components of net periodic benefit cost | |||
Service cost | 0.9 | 0.9 | 0.8 |
Interest cost | 1.4 | 1.1 | 1.1 |
Settlement loss | 3.7 | ||
Amortization of net loss | 1 | 0.9 | 0.9 |
Net periodic benefit cost | $ 3.3 | $ 2.9 | $ 6.5 |
Weighted average assumptions to determine net cost | |||
Discount rate (as a percent) | 3.81% | 3.04% | 3.36% |
Rate of compensation increase (as a percent) | 6.00% | 6.00% | 6.00% |
Weighted average assumptions to determine benefit obligations | |||
Discount rate (as a percent) | 2.63% | 3.82% | |
Rate of compensation increase (as a percent) | 6.00% | 6.00% | |
Expected employer contributions during 2020 | $ 17.5 | ||
Defined Benefit Plans | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 96.6 | $ 103.5 | |
Service cost | 1.6 | 1.7 | $ 1.5 |
Interest cost | 3.8 | 3.5 | 3.7 |
Actuarial loss (gain) | 15.9 | (9.3) | |
Benefits paid | (3.9) | (3.8) | |
Plan amendments | 2.2 | 1 | |
Benefit obligation at end of year | 116.2 | 96.6 | 103.5 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 94.9 | 89 | |
Actual return on plan assets | 16.1 | (4.2) | |
Employer contributions | 13.9 | ||
Benefits paid | (3.9) | (3.8) | |
Fair value of plan assets at end of year | 107.1 | 94.9 | 89 |
Funded status | |||
Funded status of the plans | (9.1) | (1.7) | |
Items not yet recognized as component of net periodic pension expense | |||
Unrecognized net actuarial losses | 27.2 | 23.2 | |
Unamortized prior service cost | 4.7 | 2.8 | |
Accumulated other comprehensive loss | 31.9 | 26 | |
Amounts recognized in the statement of financial position | |||
Noncurrent liabilities | (9.1) | (1.7) | |
Accumulated other comprehensive loss | 31.9 | 26 | |
Net amount recognized | 22.8 | 24.3 | |
Accumulated benefit obligation | 116.2 | 96.6 | |
Information for defined benefit plans with an accumulated benefit obligation and projected benefit obligation in excess of plan assets | |||
Accumulated benefit obligation | 116.2 | 53 | |
Projected benefit obligation | 116.2 | 53 | |
Fair value of plan assets | 107.1 | 50.1 | |
Components of net periodic benefit cost | |||
Service cost | 1.6 | 1.7 | 1.5 |
Interest cost | 3.8 | 3.5 | 3.7 |
Expected return on plan assets | (5.6) | (5.1) | (4.4) |
Settlement loss | 0.1 | ||
Prior service (credit) cost | 0.4 | 0.3 | 0.3 |
Amortization of net loss | 1.3 | 1.4 | 1.5 |
Net periodic benefit cost | $ 1.5 | $ 1.8 | $ 2.7 |
Weighted average assumptions to determine net cost | |||
Discount rate (as a percent) | 4.06% | 3.47% | 3.93% |
Expected long-term rate of return on plan assets (as a percent) | 6.09% | 5.66% | 6.17% |
Weighted average assumptions to determine benefit obligations | |||
Discount rate (as a percent) | 2.59% | 4.06% | |
Expected long-term rate of return on plan assets (as a percent) | 6.09% | 5.66% | |
Expected employer contributions during 2020 | $ 1.8 | ||
Warehouse, delivery, selling, general and administrative expense | SERPs | |||
Components of net periodic benefit cost | |||
Net periodic benefit cost | 0.9 | $ 0.9 | $ 0.8 |
Warehouse, delivery, selling, general and administrative expense | Defined Benefit Plans | |||
Components of net periodic benefit cost | |||
Net periodic benefit cost | 1.6 | 1.7 | 1.5 |
Other (income) expense, net | SERPs | |||
Components of net periodic benefit cost | |||
Net periodic benefit cost | 2.4 | 2 | 5.7 |
Other (income) expense, net | Defined Benefit Plans | |||
Components of net periodic benefit cost | |||
Net periodic benefit cost | $ (0.1) | $ 0.1 | $ 1.2 |
Employee Benefits - Defined Ben
Employee Benefits - Defined Benefit Plan Termination (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Employee Benefits | ||
Fair value of plan assets | $ 107.1 | $ 94.9 |
Frozen Defined Benefit Plan | ||
Employee Benefits | ||
Projected benefit obligation | 49.8 | |
Fair value of plan assets | 47.8 | |
Defined benefit plan, Accumulated comprehensive loss | $ 16.3 |
Employee Benefits - Plan Assets
Employee Benefits - Plan Assets and Investment Policy (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Employee Benefits | ||
Weighted-average asset allocations (as a percent) | 100.00% | 100.00% |
Fair value of plan assets | $ 104.7 | $ 92.2 |
Investments measured at net asset value (NAV) | 2.4 | 2.7 |
Total investments at fair value | 107.1 | 94.9 |
Level 1 | ||
Employee Benefits | ||
Fair value of plan assets | 91.8 | 63.3 |
Total investments at fair value | 91.8 | 63.3 |
Level 2 | ||
Employee Benefits | ||
Fair value of plan assets | 12.9 | 28.9 |
Total investments at fair value | 12.9 | 28.9 |
Equity securities | ||
Employee Benefits | ||
Fair value of plan assets | 25.1 | 27.5 |
Equity securities | Level 1 | ||
Employee Benefits | ||
Fair value of plan assets | 25.1 | 27.5 |
U.S. government, state, and agency | ||
Employee Benefits | ||
Fair value of plan assets | 9.3 | 11.6 |
U.S. government, state, and agency | Level 2 | ||
Employee Benefits | ||
Fair value of plan assets | 9.3 | 11.6 |
Corporate debt securities | ||
Employee Benefits | ||
Fair value of plan assets | 3.6 | 17.3 |
Corporate debt securities | Level 2 | ||
Employee Benefits | ||
Fair value of plan assets | 3.6 | 17.3 |
Mutual funds | ||
Employee Benefits | ||
Fair value of plan assets | 59.4 | 32.2 |
Mutual funds | Level 1 | ||
Employee Benefits | ||
Fair value of plan assets | 59.4 | 32.2 |
Cash and cash equivalents | ||
Employee Benefits | ||
Fair value of plan assets | 7.3 | 3.6 |
Cash and cash equivalents | Level 1 | ||
Employee Benefits | ||
Fair value of plan assets | $ 7.3 | $ 3.6 |
Equity securities | ||
Employee Benefits | ||
Weighted-average asset allocations (as a percent) | 33.00% | 51.00% |
Debt securities | ||
Employee Benefits | ||
Weighted-average asset allocations (as a percent) | 60.00% | 45.00% |
Cash and cash equivalents | ||
Employee Benefits | ||
Weighted-average asset allocations (as a percent) | 7.00% | 4.00% |
Employee Benefits - Postretirem
Employee Benefits - Postretirement Plan and Summary Information for All Defined Benefit Plans (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2006 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SERPs | ||||
Summary of benefit payments under the Company's various defined benefit plans, which reflect expected future employee service, as appropriate, expected to be paid in the future periods | ||||
2020 | $ 17.5 | |||
2021 | 1.1 | |||
2022 | 10.6 | |||
2023 | 1 | |||
2024 | 1 | |||
2025-2029 | 4.2 | |||
Defined Benefit Plans | ||||
Summary of benefit payments under the Company's various defined benefit plans, which reflect expected future employee service, as appropriate, expected to be paid in the future periods | ||||
2020 | 52 | |||
2021 | 2.1 | |||
2022 | 2.3 | |||
2023 | 2.5 | |||
2024 | 2.7 | |||
2025-2029 | $ 16 | |||
Supplemental Bonus Plan | ||||
Stock-Based Compensation | ||||
Number of shares of the entity to be contributed to the plan as a result of acquisition | 258,006 | |||
Share liability to the plan to be settled in cash | 64,362 | |||
Cash equivalent of share liability to the plan | $ 7.7 | |||
Expense (income) from mark to market adjustment | $ 3.3 | $ (0.8) | $ 0.6 |
Employee Benefits - Supplementa
Employee Benefits - Supplemental Bonus Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Contributions to Company Sponsored Retirement Plans | |||
Company's expense for Reliance-sponsored retirement plans | $ 42.1 | $ 45 | $ 45.9 |
Master Plan | |||
Contributions to Company Sponsored Retirement Plans | |||
Company's expense for Reliance-sponsored retirement plans | 22.7 | 28.1 | 25 |
Other defined contribution plans | |||
Contributions to Company Sponsored Retirement Plans | |||
Company's expense for Reliance-sponsored retirement plans | 9.6 | 9.4 | 9 |
ESOP | |||
Contributions to Company Sponsored Retirement Plans | |||
Company's expense for Reliance-sponsored retirement plans | 1.9 | 1.8 | |
Reliance Deferred Compensation Plan | |||
Contributions to Company Sponsored Retirement Plans | |||
Company's expense for Reliance-sponsored retirement plans | 5 | 0.9 | 0.9 |
SERPs | |||
Contributions to Company Sponsored Retirement Plans | |||
Company's expense for Reliance-sponsored retirement plans | 3.3 | 2.9 | 6.5 |
Defined Benefit Plans | |||
Contributions to Company Sponsored Retirement Plans | |||
Company's expense for Reliance-sponsored retirement plans | $ 1.5 | $ 1.8 | $ 2.7 |
Equity - Reincorporation, Commo
Equity - Reincorporation, Common Stock (Details) | 1 Months Ended | 12 Months Ended | ||||||
Feb. 29, 2020$ / shares | Feb. 28, 2019$ / shares | Feb. 28, 2018$ / shares | Feb. 28, 2017$ / shares | Jul. 31, 2016$ / shares | Dec. 31, 2019item$ / shares | Dec. 31, 2018$ / shares | Dec. 31, 2017$ / shares | |
Common Stock | ||||||||
The number of consecutive years the company has paid regular common stock quarterly dividends. | 60 | |||||||
Votes per share of common stock | 1 | |||||||
Common stock quarterly dividend per share (in dollars per share) | $ / shares | $ 0.625 | $ 0.55 | $ 0.50 | $ 0.45 | $ 0.425 | $ 2.20 | $ 2 | $ 1.80 |
Equity - Share Repurchase Plan,
Equity - Share Repurchase Plan, Preferred Stock (Details) $ / shares in Units, $ in Millions | Oct. 23, 2018shares | Dec. 31, 2019USD ($)item$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares |
Share Repurchase Plan | ||||
Increase in authorized number of shares to be repurchased | 5,000,000 | |||
Repurchase of common shares (in shares) | 600,000 | 6,100,000 | 300,000 | |
Average costs per share | $ / shares | $ 84.33 | $ 79.94 | $ 74.27 | |
Value of shares repurchased | $ | $ 50 | $ 484.9 | $ 25 | |
Remaining number of common stock authorized for repurchase under stock repurchase program (in shares) | 6,400,000 | |||
Percent of outstanding stock authorized for repurchase | 10.00% | |||
Preferred Stock | ||||
Preferred stock, authorized shares | 5,000,000 | 5,000,000 | ||
Preferred stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||
Preferred stock, issued shares | 0 | 0 | ||
Preferred stock, outstanding shares | 0 | 0 | ||
Minimum number of series in which preferred shares may be issued | item | 1 |
Equity - Accumulated Other Comp
Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of accumulated other comprehensive loss | ||
Balance at the beginning of the period | $ (102.7) | |
Reclassification of stranded tax effect resulting from Tax Reform to retained earnings | $ (5.5) | |
Other current-year change | (2.4) | |
Balance at the end of the period | (105.1) | (102.7) |
Deferred tax assets in accumulated other comprehensive loss, pension liabilities | 7.9 | 6.5 |
Foreign Currency Translation Loss | ||
Schedule of accumulated other comprehensive loss | ||
Balance at the beginning of the period | (76.8) | |
Other current-year change | 12.4 | |
Balance at the end of the period | (64.4) | (76.8) |
Pension and Postretirement Benefit Adjustments, Net of Tax | ||
Schedule of accumulated other comprehensive loss | ||
Balance at the beginning of the period | (25.9) | |
Other current-year change | (14.8) | |
Balance at the end of the period | $ (40.7) | $ (25.9) |
Other (Income) Expense, net (De
Other (Income) Expense, net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Significant components of Other (Income) Expense, net | |||
Other (income) expense, net | $ (0.8) | $ 0.7 | $ 4.7 |
Investment income from life insurance policies | |||
Significant components of Other (Income) Expense, net | |||
Other (income) expense, net | (74.3) | (67.4) | (66.4) |
Interest expense on life insurance policy loans | |||
Significant components of Other (Income) Expense, net | |||
Other (income) expense, net | 73.9 | 70.1 | 66.5 |
Life insurance policy cost of insurance | |||
Significant components of Other (Income) Expense, net | |||
Other (income) expense, net | 12.8 | 12.1 | 11.5 |
Income from life insurance policy redemptions | |||
Significant components of Other (Income) Expense, net | |||
Other (income) expense, net | (7.8) | (10.3) | (8.5) |
Foreign currency transaction losses (gains) | |||
Significant components of Other (Income) Expense, net | |||
Other (income) expense, net | 4.1 | (0.6) | 4.9 |
Net periodic benefit cost - components other than service cost | |||
Significant components of Other (Income) Expense, net | |||
Other (income) expense, net | 2.3 | 2.1 | 6.9 |
Other, net | |||
Significant components of Other (Income) Expense, net | |||
Other (income) expense, net | $ (11.8) | $ (5.3) | $ (10.2) |
Commitments and Contingencies -
Commitments and Contingencies - Purchase Commitments (Details) - Steel Products $ in Millions | Dec. 31, 2019USD ($) |
Purchase Commitments | |
Total amount of purchase commitments | $ 78.2 |
2020 | 42.1 |
2021 | 34.4 |
Thereafter | $ 1.7 |
Commitments and Contingencies_2
Commitments and Contingencies - Collective Bargaining Agreements and Environmental Contingencies (Details) | 12 Months Ended |
Dec. 31, 2019employeelocationitem | |
Employees covered by collective bargaining agreements | |
Collective Bargaining Agreements | |
Number of Location Entity Operates | location | 52 |
Total employees | Employees covered by collective bargaining agreements | |
Collective Bargaining Agreements | |
Percentage of employees covered by collective bargaining agreements | 11.00% |
Number of employees | employee | 1,690 |
Number of collective bargaining agreements that expire over the next six years | item | 62 |
Expiration period of collective bargaining agreements | 6 years |
Employees covered by collective bargaining agreements that expire during 2020 | |
Collective Bargaining Agreements | |
Number of employees | employee | 400 |
Number of collective bargaining agreements that expire within one year | item | 18 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||||||||||
Net income attributable to Reliance | $ 165.6 | $ 162.7 | $ 183.1 | $ 190.1 | $ 85.6 | $ 148.3 | $ 230.8 | $ 169 | $ 701.5 | $ 633.7 | $ 613.4 |
Denominator: | |||||||||||
Weighted average shares outstanding (in shares) | 66,885 | 71,621 | 72,851 | ||||||||
Dilutive effect of stock-based awards (in shares) | 970 | 820 | 688 | ||||||||
Weighted average diluted shares outstanding (in shares) | 67,855 | 72,441 | 73,539 | ||||||||
Earnings per share attributable to Reliance stockholders - diluted (in dollars per share) | $ 2.44 | $ 2.40 | $ 2.69 | $ 2.80 | $ 1.22 | $ 2.03 | $ 3.16 | $ 2.30 | $ 10.34 | $ 8.75 | $ 8.34 |
Earnings per share attributable to Reliance stockholders - basic (in dollars per share) | $ 2.48 | $ 2.44 | $ 2.73 | $ 2.83 | $ 1.23 | $ 2.06 | $ 3.19 | $ 2.32 | $ 10.49 | $ 8.85 | $ 8.42 |
Segment Information - Summary o
Segment Information - Summary of sales by product and service (Details) - item | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Information | |||
Number of reportable segments | 1 | 1 | 1 |
Sales (as a percent) | 100.00% | 100.00% | 100.00% |
Carbon steel | |||
Segment Information | |||
Sales (as a percent) | 52.00% | 53.00% | 52.00% |
Aluminum | |||
Segment Information | |||
Sales (as a percent) | 19.00% | 19.00% | 19.00% |
Stainless steel | |||
Segment Information | |||
Sales (as a percent) | 14.00% | 14.00% | 14.00% |
Alloy | |||
Segment Information | |||
Sales (as a percent) | 6.00% | 6.00% | 6.00% |
Toll processing and logistics | |||
Segment Information | |||
Sales (as a percent) | 4.00% | 4.00% | 4.00% |
Other | |||
Segment Information | |||
Sales (as a percent) | 5.00% | 4.00% | 5.00% |
Segment Information - Geographi
Segment Information - Geographic Location (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated financial information of the Company's operations by geographic location | |||
Net sales | $ 10,973.8 | $ 11,534.5 | $ 9,721 |
Long-lived assets | 5,120.9 | 4,759.9 | 4,699.7 |
United States | |||
Consolidated financial information of the Company's operations by geographic location | |||
Net sales | 10,099.2 | 10,638.4 | 8,847.3 |
Long-lived assets | 4,776.7 | 4,431.8 | 4,353.7 |
Foreign Countries | |||
Consolidated financial information of the Company's operations by geographic location | |||
Net sales | 874.6 | 896.1 | 873.7 |
Long-lived assets | $ 344.2 | $ 328.1 | $ 346 |
Impairment and Restructuring _3
Impairment and Restructuring Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Impairment and Restructuring Charges | |||
Property, plant and equipment | $ 1.2 | $ 3.8 | $ 4.2 |
Intangible assets, net | 33.2 | ||
Total impairment charges | 1.2 | 37 | 4.2 |
Total impairment and restructuring charges | $ 1.2 | 39.5 | 4.1 |
Cost of sales | |||
Impairment and Restructuring Charges | |||
Restructuring | (0.2) | ||
Warehouse, delivery, selling, general and administrative expense | |||
Impairment and Restructuring Charges | |||
Restructuring | $ 2.5 | $ 0.1 |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of the quarterly results of operations | |||||||||||
Net sales | $ 2,447.8 | $ 2,685.9 | $ 2,883.5 | $ 2,956.6 | $ 2,814 | $ 2,974.5 | $ 2,988.9 | $ 2,757.1 | $ 10,973.8 | $ 11,534.5 | $ 9,721 |
Cost of sales | 1,653.6 | 1,871.2 | 2,029.9 | 2,089.7 | 2,104.2 | 2,140.2 | 2,071.4 | 1,937.2 | 7,644.4 | 8,253 | 6,933.2 |
Gross profit | 794.2 | 814.7 | 853.6 | 866.9 | 709.8 | 834.3 | 917.5 | 819.9 | |||
Net income | 166.3 | 163.9 | 184.3 | 191.6 | 87.3 | 150.3 | 233.1 | 171.1 | 706.1 | 641.8 | 621 |
Net income attributable to Reliance | $ 165.6 | $ 162.7 | $ 183.1 | $ 190.1 | $ 85.6 | $ 148.3 | $ 230.8 | $ 169 | $ 701.5 | $ 633.7 | $ 613.4 |
Diluted earnings per common share (in dollars per share) | $ 2.44 | $ 2.40 | $ 2.69 | $ 2.80 | $ 1.22 | $ 2.03 | $ 3.16 | $ 2.30 | $ 10.34 | $ 8.75 | $ 8.34 |
Basic earnings per common share (in dollars per share) | $ 2.48 | $ 2.44 | $ 2.73 | $ 2.83 | $ 1.23 | $ 2.06 | $ 3.19 | $ 2.32 | $ 10.49 | $ 8.85 | $ 8.42 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - Allowance for doubtful accounts - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in valuation and qualifying accounts | |||
Balance at Beginning of Year | $ 18.8 | $ 15.5 | $ 15.3 |
Additions Charged to Costs and Expenses | 3.4 | 7.4 | 6.7 |
Deductions | 4.4 | 4.4 | 6.5 |
Amounts Charged to Other Accounts | 0.3 | ||
Balance at End of Year | $ 17.8 | $ 18.8 | $ 15.5 |