Condensed Consolidating Guarantor Financial Statements (Tables)

9 Months Ended

Sep. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Condensed Consolidating Statement of Comprehensive Income

RYERSON INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

THREE MONTHS ENDED SEPTEMBER 30, 2014

(In millions)

	Parent			Joseph T. Ryerson			Guarantor			Non-guarantor			Eliminations			Consolidated
Net sales	$	—		$	806.3		$	714.4		$	117.9		$	(690.7	)	$	947.9
Cost of materials sold		—			689.4			701.0			98.7			(690.7	)		798.4
Gross profit		—			116.9			13.4			19.2			—			149.5
Warehousing, delivery, selling, general and administrative		1.0			129.7			6.1			17.4			—			154.2
Gain on sale of assets		—			—			—			(1.3	)		—			(1.3	)
Operating profit (loss)		(1.0	)		(12.8	)		7.3			3.1			—			(3.4	)
Other income and (expense), net		—			(11.1	)		—			2.6			—			(8.5	)
Interest and other expense on debt		(3.7	)		(23.5	)		—			(0.7	)		—			(27.9	)
Intercompany transactions:
Interest expense on intercompany loans		(6.9	)		—			—			—			6.9			—
Interest income on intercompany loans		—			5.1			1.8			—			(6.9	)		—
Income (loss) before income taxes		(11.6	)		(42.3	)		9.1			5.0			—			(39.8	)
Provision (benefit) for income taxes		23.8			(23.2	)		(13.7	)		(0.3	)		—			(13.4	)
Equity in earnings of subsidiaries		(9.8	)		(13.1	)		(1.9	)		—			24.8			—
Net income (loss)		(25.6	)		(6.0	)		24.7			5.3			(24.8	)		(26.4	)
Less: Net loss attributable to noncontrolling interest		—			—			—			(0.8	)		—			(0.8	)
Net income (loss) attributable to Ryerson Inc.		(25.6	)		(6.0	)		24.7			6.1			(24.8	)		(25.6	)
Comprehensive income (loss)	$	(32.9	)	$	(2.1	)	$	22.5		$	(3.8	)	$	(17.4	)	$	(33.7	)
Less: Comprehensive loss attributable to noncontrolling interest		—			—			—			(0.8	)		—			(0.8	)
Comprehensive income (loss) attributable to Ryerson Inc.	$	(32.9	)	$	(2.1	)	$	22.5		$	(3.0	)	$	(17.4	)	$	(32.9	)

RYERSON INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

THREE MONTHS ENDED SEPTEMBER 30, 2013

(In millions)

	Parent			Joseph T. Ryerson			Guarantor			Non-guarantor			Eliminations			Consolidated
Net sales	$	—		$	726.2		$	596.5		$	116.3		$	(579.2	)	$	859.8
Cost of materials sold		—			599.2			585.7			99.0			(579.2	)		704.7
Gross profit		—			127.0			10.8			17.3			—			155.1
Warehousing, delivery, selling, general and administrative		1.3			91.3			6.3			20.7			—			119.6
Impairment charges on fixed assets		—			1.1			—			—			—			1.1
Operating profit (loss)		(1.3	)		34.6			4.5			(3.4	)		—			34.4
Other income and (expense), net		—			—			—			(1.1	)		—			(1.1	)
Interest and other expense on debt		(3.3	)		(23.1	)		—			(0.7	)		—			(27.1	)
Intercompany transactions:
Interest expense on intercompany loans		(7.4	)		—			—			—			7.4			—
Interest income on intercompany loans		—			5.5			1.9			—			(7.4	)		—
Income (loss) before income taxes		(12.0	)		17.0			6.4			(5.2	)		—			6.2
Provision (benefit) for income taxes		(8.6	)		12.2			5.3			(6.0	)		—			2.9
Equity in earnings of subsidiaries		(7.7	)		(4.7	)		(4.1	)		—			16.5			—
Net income		4.3			9.5			5.2			0.8			(16.5	)		3.3
Less: Net loss attributable to noncontrolling interest		—			—			—			(1.0	)		—			(1.0	)
Net income attributable to Ryerson Inc.	$	4.3		$	9.5		$	5.2		$	1.8		$	(16.5	)	$	4.3
Comprehensive income	$	9.8		$	10.3		$	5.7		$	4.7		$	(21.9	)	$	8.6
Less: Comprehensive loss attributable to noncontrolling interest		—			—			—			(1.2	)		—			(1.2	)
Comprehensive income attributable to Ryerson Inc.	$	9.8		$	10.3		$	5.7		$	5.9		$	(21.9	)	$	9.8

RYERSON INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

NINE MONTHS ENDED SEPTEMBER 30, 2014

(In millions)

	Parent			Joseph T. Ryerson			Guarantor			Non-guarantor			Eliminations			Consolidated
Net sales	$	—		$	2,342.1		$	1,952.8		$	346.6		$	(1,887.7	)	$	2,753.8
Cost of materials sold		—			1,984.5			1,914.5			290.9			(1,887.7	)		2,302.2
Gross profit		—			357.6			38.3			55.7			—			451.6
Warehousing, delivery, selling, general and administrative		3.7			318.2			18.2			52.3			—			392.4
Gain on sale of assets		—			—			—			(1.3	)		—			(1.3	)
Operating profit (loss)		(3.7	)		39.4			20.1			4.7			—			60.5
Other income and (expense), net		—			(11.0	)		—			2.8			—			(8.2	)
Interest and other expense on debt		(11.2	)		(69.5	)		—			(2.1	)		—			(82.8	)
Intercompany transactions:
Interest expense on intercompany loans		(21.9	)		—			—			—			21.9			—
Interest income on intercompany loans		—			16.2			5.7			—			(21.9	)		—
Income (loss) before income taxes		(36.8	)		(24.9	)		25.8			5.4			—			(30.5	)
Provision (benefit) for income taxes		8.8			(12.9	)		(3.7	)		—			—			(7.8	)
Equity in earnings of subsidiaries		(25.5	)		(31.4	)		(2.0	)		—			58.9			—
Net income (loss)		(20.1	)		19.4			31.5			5.4			(58.9	)		(22.7	)
Less: Net loss attributable to noncontrolling interest		—			—			—			(2.6	)		—			(2.6	)
Net income (loss) attributable to Ryerson Inc.	$	(20.1	)	$	19.4		$	31.5		$	8.0		$	(58.9	)	$	(20.1	)
Comprehensive income (loss)	$	(31.0	)	$	23.2		$	26.0		$	(3.9	)	$	(48.0	)	$	(33.7	)
Less: Comprehensive loss attributable to noncontrolling interest		—			—			—			(2.7	)		—			(2.7	)
Comprehensive income (loss) attributable to Ryerson Inc.	$	(31.0	)	$	23.2		$	26.0		$	(1.2	)	$	(48.0	)	$	(31.0	)

RYERSON INC.

CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)

NINE MONTHS ENDED SEPTEMBER 30, 2013

(In millions)

	Parent			Joseph T. Ryerson			Guarantor			Non-guarantor			Eliminations			Consolidated
Net sales	$	—		$	2,241.9		$	1,800.0		$	360.7		$	(1,744.8	)	$	2,657.8
Cost of materials sold		—			1,857.4			1,766.2			309.6			(1,744.8	)		2,188.4
Gross profit		—			384.5			33.8			51.1			—			469.4
Warehousing, delivery, selling, general and administrative		3.8			278.9			17.5			62.5			—			362.7
Restructuring and other charges		—			—			—			2.1						2.1
Impairment charges on fixed assets and goodwill		—			2.0			—			6.8			—			8.8
Operating profit (loss)		(3.8	)		103.6			16.3			(20.3	)		—			95.8
Other income and (expense), net		—			0.2			—			1.9			—			2.1
Interest and other expense on debt		(11.9	)		(69.2	)		—			(2.2	)		—			(83.3	)
Intercompany transactions:
Interest expense on intercompany loans		(19.4	)		—			—			—			19.4			—
Interest income on intercompany loans		—			13.6			5.8			—			(19.4	)		—
Income (loss) before income taxes		(35.1	)		48.2			22.1			(20.6	)		—			14.6
Provision (benefit) for income taxes		(13.0	)		18.3			8.3			(7.4	)		—			6.2
Equity in earnings of subsidiaries		(35.4	)		(14.3	)		(0.2	)		—			49.9			—
Net income (loss)		13.3			44.2			14.0			(13.2	)		(49.9	)		8.4
Less: Net loss attributable to noncontrolling interest		—			—			—			(4.9	)		—			(4.9	)
Net income (loss) attributable to Ryerson Inc.	$	13.3		$	44.2		$	14.0		$	(8.3	)	$	(49.9	)	$	13.3
Comprehensive income (loss)	$	11.8		$	46.7		$	15.8		$	(19.1	)	$	(48.3	)	$	6.9
Less: Comprehensive loss attributable to noncontrolling interest		—			—			—			(4.9	)		—			(4.9	)
Comprehensive income (loss) attributable to Ryerson Inc.	$	11.8		$	46.7		$	15.8		$	(14.2	)	$	(48.3	)	$	11.8

Condensed Consolidating Statement of Cash Flows

RYERSON INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED)

NINE MONTHS ENDED SEPTEMBER 30, 2014

(In millions)

	Parent			Joseph T. Ryerson			Guarantor			Non-guarantor			Eliminations			Consolidated
OPERATING ACTIVITIES:
Net income	$	(20.1	)	$	19.4		$	31.5		$	5.4		$	(58.9	)	$	(22.7	)
Non-cash expenses		4.2			21.5			3.2			4.3			1.5			34.7
Equity in earnings of subsidiaries		(25.5	)		(31.4	)		(2.0	)		—			58.9			—
Changes in working capital		16.3			(15.7	)		(37.4	)		(18.3	)		(1.5	)		(56.6	)
Net adjustments		(5.0	)		(25.6	)		(36.2	)		(14.0	)		58.9			(21.9	)
Net cash used in operating activities		(25.1	)		(6.2	)		(4.7	)		(8.6	)		—			(44.6	)
INVESTING ACTIVITIES:
Capital expenditures		—			(12.2	)		(0.3	)		(1.2	)		—			(13.7	)
Loan to related companies		—			—			(16.4	)		—			16.4			—
Loan repayment from related parties		—			129.9			—			—			(129.9	)		—
Other investing activities		(0.3	)		1.3			—			2.7			0.1			3.8
Net cash provided by (used in) investing activities		(0.3	)		119.0			(16.7	)		1.5			(113.4	)		(9.9	)
FINANCING ACTIVITIES:
Repayment of debt		—			(110.7	)		—			—			—			(110.7	)
Net proceeds of short-term borrowings		28.5			—			—			4.0			—			32.5
Proceeds from intercompany borrowings		16.4			—			—			—			(16.4	)		—
Repayment of intercompany borrowings		(129.9	)		—			—			—			129.9			—
Net increase book overdrafts		0.2			1.3			20.3			—			—			21.8
Capital contribution		110.7			—			—			0.1			(0.1	)		110.7
Other financing activities		—			(0.7	)		—			—			—			(0.7	)
Net cash provided by financing activities		25.9			(110.1	)		20.3			4.1			113.4			53.6
Net increase (decrease) in cash and cash equivalents		0.5			2.7			(1.1	)		(3.0	)		—			(0.9	)
Effect of exchange rates		—			—			0.1			(4.6	)		—			(4.5	)
Net change in cash and cash equivalents		0.5			2.7			(1.0	)		(7.6	)		—			(5.4	)
Beginning cash and cash equivalents		—			7.8			2.4			63.8			—			74.0
Ending cash and cash equivalents	$	0.5		$	10.5		$	1.4		$	56.2		$	—		$	68.6

RYERSON INC.

CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED)

NINE MONTHS ENDED SEPTEMBER 30, 2013

(In millions)

	Parent			Joseph T. Ryerson			Guarantor			Non-guarantor			Eliminations			Consolidated
OPERATING ACTIVITIES:
Net income (loss)	$	13.3		$	44.2		$	14.0		$	(13.2	)	$	(49.9	)	$	8.4
Non-cash expenses		(0.1	)		37.8			2.5			13.1			—			53.3
Equity in (earnings) loss of subsidiaries		(35.4	)		(14.3	)		(0.2	)		—			49.9			—
Changes in working capital		616.5			1,038.0			(1,640.1	)		11.9			—			26.3
Net adjustments		581.0			1,061.5			(1,637.8	)		25.0			49.9			79.6
Net cash provided by (used in) operating activities		594.3			1,105.7			(1,623.8	)		11.8			—			88.0
INVESTING ACTIVITIES:
Capital expenditures		—			(13.2	)		(0.5	)		(2.8	)		—			(16.5	)
Loan to related companies		—			(432.4	)		—			—			432.4			—
Loan repayment from related companies		494.6			—			1,444.7			—			(1,939.3	)		—
Investment in related companies		—			(173.2	)		—			—			173.2			—
Other investing activities		(0.9	)		4.3			—			0.2			—			3.6
Net cash provided by (used in) investing activities		493.7			(614.5	)		1,444.2			(2.6	)		(1,333.7	)		(12.9	)
FINANCING ACTIVITIES:
Net repayments of short term borrowings		(65.0	)		—			—			(0.3	)		—			(65.3	)
Proceeds from intercompany borrowings		432.4			—			—			—			(432.4	)		—
Repayment of intercompany borrowings		(1,444.7	)		(494.6	)		—			—			1,939.3			—
Capital contribution		—			—			173.2			—			(173.2	)		—
Other financing activities		(3.2	)		(1.3	)		7.8			(0.5	)		—			2.8
Net cash provided by (used in) financing activities		(1,080.5	)		(495.9	)		181.0			(0.8	)		1,333.7			(62.5	)
Net increase (decrease) in cash and cash equivalents		7.5			(4.7	)		1.4			8.4			—			12.6
Effect of exchange rates		—			—			(0.1	)		(2.6	)		—			(2.7	)
Net change in cash and cash equivalents		7.5			(4.7	)		1.3			5.8			—			9.9
Beginning cash and cash equivalents		0.2			15.3			1.9			53.4			—			70.8
Ending cash and cash equivalents	$	7.7		$	10.6		$	3.2		$	59.2		$	—		$	80.7

Condensed Consolidating Balance Sheet

RYERSON INC.

CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED)

SEPTEMBER 30, 2014

(In millions)

	Parent			Joseph T. Ryerson		Guarantor		Non-guarantor			Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	0.5		$	10.5	$	1.4	$	56.2		$	—		$	68.6
Receivables less provision for allowances, claims and doubtful accounts		1.0			366.8		13.2		87.2			—			468.2
Inventories		—			632.8		27.1		76.1			—			736.0
Intercompany receivable		—			157.0		137.6		—			(294.6	)		—
Other current assets		0.2			10.0		12.0		17.8			(1.0	)		39.0
Total current assets		1.7			1,177.1		191.3		237.3			(295.6	)		1,311.8
Investments in subsidiaries		1,020.2			447.4		36.1		—			(1,503.7	)		—
Intercompany notes receivable		—			276.2		240.2		—			(516.4	)		—
Property, plant and equipment net of accumulated depreciation		—			373.4		3.3		57.2			—			433.9
Other noncurrent assets		101.1			57.0		61.7		5.1			(3.4	)		221.5
Total assets	$	1,123.0		$	2,331.1	$	532.6	$	299.6		$	(2,319.1	)	$	1,967.2
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	$	—		$	45.9	$	201.6	$	38.6		$	(0.1	)	$	286.0
Intercompany payable		261.2			—		—		33.3			(294.5	)		—
Deferred income taxes		1.3			119.1		0.5		—			(3.2	)		117.7
Other current liabilities		2.9			109.2		4.3		41.8			—			158.2
Total current liabilities		265.4			274.2		206.4		113.7			(297.8	)		561.9
Long-term debt		397.6			800.5		—		—			—			1,198.1
Long-term debt – intercompany		516.4			—		—		—			(516.4	)		—
Deferred employee benefits		0.7			229.8		—		23.2			—			253.7
Taxes and other credits		5.2			11.1		2.6		2.0			(1.2	)		19.7
Total liabilities		1,185.3			1,315.6		209.0		138.9			(815.4	)		2,033.4
Redeemable noncontrolling interest		—			—		—		1.2			—			1.2
Ryerson Inc. stockholders’ equity		(62.3	)		1,015.5		323.6		164.6			(1,503.7	)		(62.3	)
Noncontrolling interest		—			—		—		(5.1	)		—			(5.1	)
Total liabilities and equity	$	1,123.0		$	2,331.1	$	532.6	$	299.6		$	(2,319.1	)	$	1,967.2

RYERSON INC.

CONDENSED CONSOLIDATING BALANCE SHEET

DECEMBER 31, 2013

(In millions)

	Parent			Joseph T. Ryerson		Guarantor		Non-guarantor			Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	—		$	7.8	$	2.4	$	63.8		$	—		$	74.0
Receivables less provision for allowances, claims and doubtful accounts		3.5			290.4		8.8		82.7			—			385.4
Inventories		—			637.1		25.8		70.1			—			733.0
Intercompany receivable		—			227.0		55.2		—			(282.2	)		—
Other current assets		—			11.4		20.8		18.8			(1.5	)		49.5
Total current assets		3.5			1,173.7		113.0		235.4			(283.7	)		1,241.9
Investments in subsidiaries		1,005.7			416.0		34.0		—			(1,455.7	)		—
Intercompany notes receivable		—			406.1		223.8		—			(629.9	)		—
Property, plant and equipment net of accumulated depreciation		—			387.8		3.1		61.8			—			452.7
Other noncurrent assets		107.3			48.5		64.0		5.8			(2.2	)		223.4
Total assets	$	1,116.5		$	2,432.1	$	437.9	$	303.0		$	(2,371.5	)	$	1,918.0
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	$	—		$	35.1	$	132.8	$	39.1		$	0.2		$	207.2
Intercompany payable		247.6			—		—		35.0			(282.6	)		—
Deferred income taxes		2.9			119.1		0.5		—			(1.5	)		121.0
Other current liabilities		8.8			85.5		1.7		36.7			0.2			132.9
Total current liabilities		259.3			239.7		135.0		110.8			(283.7	)		461.1
Long-term debt		362.5			900.0		—		—			—			1,262.5
Long-term debt – intercompany		629.9			—		—		—			(629.9	)		—
Deferred employee benefits		0.6			294.4		—		25.8			—			320.8
Taxes and other credits		6.2			5.6		5.3		1.9			(2.2	)		16.8
Total liabilities		1,258.5			1,439.7		140.3		138.5			(915.8	)		2,061.2
Redeemable noncontrolling interest		—			—		—		1.3			—			1.3
Ryerson Inc. stockholders’ equity		(142.0	)		992.4		297.6		165.7			(1,455.7	)		(142.0	)
Noncontrolling interest		—			—		—		(2.5	)		—			(2.5	)
Total liabilities and equity	$	1,116.5		$	2,432.1	$	437.9	$	303.0		$	(2,371.5	)	$	1,918.0