CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| CONSOLIDATED BALANCE SHEETS | ||
| Accounts receivable, allowance for credit losses | $ 26.1 | $ 26.7 |
| 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 | 58,787,000 | 61,806,000 |
| Common stock, outstanding shares | 58,787,000 | 61,806,000 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
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| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||
| Net income | $ 1,844.2 | $ 1,417.4 | $ 372.4 |
| Other comprehensive (loss) income: | |||
| Foreign currency translation (loss) gain | (28.8) | (2.5) | 11.7 |
| Pension and postretirement benefit adjustments, net of tax | 11.4 | 11.5 | 15.5 |
| Total other comprehensive (loss) income | (17.4) | 9.0 | 27.2 |
| Comprehensive income | 1,826.8 | 1,426.4 | 399.6 |
| Less: comprehensive income attributable to noncontrolling interests | 4.1 | 4.4 | 3.3 |
| Comprehensive income attributable to Reliance | $ 1,822.7 | $ 1,422.0 | $ 396.3 |
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) - $ / shares |
1 Months Ended | 12 Months Ended | ||||||
|---|---|---|---|---|---|---|---|---|
Feb. 28, 2023 |
Feb. 28, 2022 |
Feb. 28, 2021 |
Feb. 29, 2020 |
Feb. 28, 2019 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
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| CONSOLIDATED STATEMENTS OF EQUITY | ||||||||
| Cash dividends declared per common share (in dollars per share) | $ 1.00 | $ 0.875 | $ 0.6875 | $ 0.625 | $ 0.55 | $ 3.50 | $ 2.75 | $ 2.50 |
Summary of Significant Accounting Policies |
12 Months Ended |
|---|---|
Dec. 31, 2022 | |
| Summary of Significant Accounting Policies | |
| Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of Reliance Steel & Aluminum Co. and its subsidiaries (collectively referred to as “Reliance”, “the Company”, “we”, “our” or “us”). Our consolidated financial statements include the assets, liabilities and operating results of majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. The ownership interests in our consolidated subsidiaries held by others are reflected as noncontrolling interests. Our investments in unconsolidated subsidiaries are recorded under the equity method of accounting. Business As a global diversified metal solutions provider, we operate a network of approximately 315 locations in 40 states and in 12 foreign countries (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. Reclassification The accompanying consolidated balance sheet as of December 31, 2021 includes a reclassification of $43.2 million of deferred compensation plan liabilities from Long-term retirement benefits to Other long-term to conform to the current presentation. Accounting Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, such as allowances for credit losses, 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. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates. Accounts Receivable and Concentrations of Credit Risk Trade receivables are typically non-interest bearing and are recorded at amortized 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. 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 customer’s financial condition, with terms consistent in the industry and no collateral is required. The allowance for credit losses reflects the expected losses on our trade receivables and is determined based on customer-specific facts and the consideration of historical loss information, current conditions and reasonable and supportable forecasts using a loss-rate approach. Amounts are written-off against the allowance in the period we determine that the receivable is uncollectible. 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. We do not consider ourselves to have any significant concentrations of credit risk. Inventories The majority of our inventory is valued using the last-in, first-out (“LIFO”) 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 metal wholesaling industry as well as fluctuations in our product mix and on-hand inventory levels. Fair Values of Financial Instruments Fair values of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities, and current maturities of operating lease liabilities 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 with an aggregate face value of $1.65 billion as of December 31, 2022 and 2021. The aggregate fair value of these senior unsecured notes based on quoted market prices was $1.53 billion and $1.75 billion at December 31, 2022 and 2021, respectively, compared to their aggregate carrying value of $1.64 billion. The estimated fair values of our senior unsecured notes are based on Level 2 inputs, including benchmark yields, reported trades and broker/dealer quotes. Fair values of our other financial instruments, which include assets held within rabbi trusts, are comprised of assets that are generally based on quoted market prices for identical instruments that trade in active markets. Cash Equivalents 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 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. 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 on November 1 of each year. No impairment of goodwill was determined to exist in any of the years presented. We recognized impairment losses of $4.7 million and $67.8 million related to our other intangible assets with indefinite lives in 2021 and 2020. No impairment losses were recognized related to our other intangible assets with indefinite lives in 2022. See Note 19—“Impairment and Restructuring Charges” for further discussion of our impairment losses. Long-Lived Assets 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 to 50 years and machinery and equipment over to 20 years. 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 didn’t recognize any impairment losses for long-lived assets in 2022 and 2021. We recognized $9.3 million of losses for property, plant and equipment and $30.7 million for intangible assets subject to amortization in 2020. See Note 19—“Impairment and Restructuring Charges” for further discussion of our impairment losses. Leases We determine if an arrangement is a lease at inception. Our lease agreements generally contain only lease components. Our lease payments are generally fixed with certain leases containing variable payments related to Consumer Price Index (“CPI”) annual adjustments. Right-of-use assets and lease liabilities are recognized on the balance sheet at the present value of the future lease payments at the lease commencement date. Certain of our lease terms include periods under renewal options when it is reasonably certain that we will exercise that option. We generally include optional renewal periods when determining our lease terms and future lease payments. The interest rate used to determine the present value of future lease payments is our incremental borrowing rate that is estimated to approximate the interest rate on a collateralized basis with similar terms and payments. Operating lease cost is recognized on a straight-line basis over the lease term. Revenue Recognition 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. Sales and value-added taxes collected from customers are excluded from our reported sales. 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, 2022, 2021 and 2020. Metal Sales 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 2022, 2021 and 2020, shipping and handling costs included in Warehouse, delivery, selling, general and administrative (“SG&A”) expenses were $509.7 million, $424.6 million and $357.4 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. Toll Processing and Logistics Toll processing services relate to the processing of customer-owned metal. Logistics services primarily include transportation and storage 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. Seasonality Some of our customers are in seasonal businesses, especially customers in the construction industry and related businesses. 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. The number of shipping days in each quarter also has an impact on our quarterly sales and profitability. We cannot predict whether period-to-period fluctuations will be consistent with historical patterns. Results of any one or more quarters are therefore not necessarily indicative of annual results. Stock-Based Compensation 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 $65.3 million, $70.8 million and $42.2 million in 2022, 2021 and 2020, respectively, and is included in the SG&A caption of our consolidated statements of income. Environmental Remediation Costs 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 insurance policies and 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—“Commitments and Contingencies” for further discussion of our environmental remediation matters. Income Taxes 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. We perform 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 measured as 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. Foreign Currencies The currency effects of translating into U.S. dollars the financial statements of our foreign subsidiaries, which typically use the local currency of the countries in which they are located, are included in other comprehensive (loss) income. Gains and losses resulting from foreign currency transactions are included in the results of operations in the Other expense, net caption and amounted to $6.2 million, $4.0 million and $2.3 million of losses in 2022, 2021 and 2020, respectively.
Impact of Recently Issued Accounting Standards—Adopted Reference Rate Reform—In March 2020, the Financial Accounting Standards Board (“FASB”) issued accounting changes that provided optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Interbank Offered Rate (“LIBOR”) for deposits of U.S. dollars or another reference rate expected to be discontinued because of reference rate reform. In December 2022, the FASB deferred the sunset date to apply these accounting changes prospectively through December 31, 2024. In January 2023, we utilized the optional expedients and exceptions provided in these accounting changes to the amendment of our credit agreement that included a change to the reference rate from LIBOR to the Secured Overnight Finance Rate (“SOFR”). See Note 9—“Debt” for further discussion of the amendment to our credit agreement. The transition from LIBOR to SOFR did not have a material impact on our consolidated financial statements.
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Acquisitions |
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| Acquisitions | Note 2. Acquisitions 2021 Acquisitions In the fourth quarter of 2021, we acquired each of Merfish United, Inc., Admiral Metals Servicenter Company, Incorporated, Nu-Tech Precision Metals Inc. and Rotax Metals Inc. with cash on hand. Included in our net sales for the year ended December 31, 2022 were combined net sales of $863.0 million from our 2021 acquisitions. The allocation of the total purchase price for our 2021 acquisitions to the fair values of the assets acquired and liabilities assumed was as follows:
Summary purchase price allocation information for all acquisitions All of the acquisitions discussed in this note 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 acquisition’s purchase price as of December 31, 2022 or 2021, as applicable. The measurement periods for purchase price allocations do not exceed 12 months from the acquisition date. As part of the purchase price allocations for the 2021 acquisitions, we allocated $51.2 million 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. We recorded other identifiable intangible assets related to customer relationships for the 2021 acquisitions of $92.3 million with weighted average lives of 10.0 years, and an identifiable other intangible asset related to production backlog of $23.8 million with an average life of 7.9 years. The goodwill arising from our 2021 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. Goodwill of $106.4 million from our 2021 acquisitions is deductible for tax purposes. Total goodwill deductible for tax purposes was $854.5 million as of December 31, 2022. Unaudited Pro forma financial information for all acquisitions The following unaudited pro forma summary financial results present the consolidated results of operations as if our 2021 acquisitions had occurred as of January 1, 2020, after the effect of certain adjustments, including non-recurring acquisition-related costs, amortization of inventory step-up to fair value adjustments included in cost of sales, depreciation and amortization of certain identifiable property, plant and equipment and intangible assets, and lease cost fair value adjustments. The pro forma summary financial results for the year ended December 31, 2021 excluded $7.7 million of acquisition-related costs. The pro forma results have been presented for comparative purposes only and are not indicative of what would have occurred had the 2021 acquisitions been made as of January 1, 2020, or of any potential results which may occur in the future.
The pro forma amounts presented for the year ended December 31, 2020 include $21.8 million of non-recurring amortization of inventory step-up to fair value adjustments, $7.8 million of non-recurring excess renumeration paid to former owners and employees, and $7.7 million of non-recurring acquisition-related costs. As adjusted for these non-recurring items, pro forma net income attributable to Reliance was $384.6 million and pro forma diluted earnings per share were $5.89 for the year ended December 31, 2020. |
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Joint Ventures and Noncontrolling Interests |
12 Months Ended |
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Dec. 31, 2022 | |
| Joint Ventures and Noncontrolling Interests | |
| Joint Ventures and Noncontrolling Interests | Note 3. Joint Ventures and Noncontrolling Interests 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%. Operations that are majority owned by us are as follows: Indiana Pickling and Processing Company (56%-owned), and Valex Corp.’s 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. On March 31, 2020, through our wholly owned subsidiary, Feralloy Corporation, we purchased the remaining 49% noncontrolling interest of Feralloy Processing Company, an Indiana partnership (“FPC”) and toll processor in Portage, Indiana. We have consolidated the financial results of FPC since August 1, 2008 when we acquired Feralloy Corporation as part of our acquisition of PNA Group, Inc. Consequently, the increase in our ownership from 51% to 100% was accounted for as an equity transaction. The $5.5 million decrease in total Reliance stockholders’ equity recognized from the transaction was comprised of $8.0 million of cash consideration paid for the noncontrolling interest less its carrying amount of $1.1 million and $1.4 million of direct tax effects resulting from the transaction.
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Inventories |
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| Inventories | Note 4. Inventories 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 (“FIFO”) method is not in excess of net realizable value. Inventories consisted of the following:
The changes in the LIFO inventory valuation reserve were as follows:
Cost decreases for the majority of our products were the primary cause of the 2022 and 2020 LIFO inventory valuation reserve adjustment being a credit, or income. Cost increases for the majority of our products were the primary cause of the 2021 LIFO inventory valuation reserve adjustment being a charge, or expense. There were insignificant liquidations of LIFO inventory quantities for all years presented. |
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Revenues |
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| Revenues | Note 5. Revenues The following table presents our sales disaggregated by product and service.
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Goodwill |
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| Goodwill | Note 6. Goodwill The changes in the carrying amount of goodwill are as follows:
We had no accumulated impairment losses related to goodwill at December 31, 2022 and 2021. |
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Intangible Assets, net |
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| Intangible Assets, net | Note 7. Intangible Assets, net Intangible assets, net, consisted of the following:
Certain 2021 amounts have been reclassified for consistency with the current period presentation. In 2022, we recorded purchase price adjustments relating to our 2021 acquisitions based on the finalization of intangible asset valuations that decreased trade name intangible assets by $16.9 million, increased the backlog of orders intangible asset by $8.0 million and increased customer lists/relationships intangible assets by $2.7 million. See Note 2—“Acquisitions” for further discussion of intangible assets recorded in the purchase price allocations for our 2021 acquisitions. During 2021, we recognized impairment losses of $4.7 million on our trade name intangible assets and a total of $98.5 million of impairment losses in 2020, comprised of $67.8 million on our trade name intangible assets and $30.7 million on our customer relationship intangible assets. See Note 19—“Impairment and Restructuring Charges” for further discussion of our impairment losses. Amortization expense for intangible assets amounted to $48.1 million, $38.7 million and $39.6 million in 2022, 2021 and 2020, respectively. Foreign currency translation losses were $4.0 million in 2022 compared to gains of $0.3 million in 2021. The following is a summary of estimated aggregate amortization expense for each of the next five years:
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Cash Surrender Value of Life Insurance Policies, net |
12 Months Ended |
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Dec. 31, 2022 | |
| Cash Surrender Value of Life Insurance Policies, net | |
| Cash Surrender Value of Life Insurance Policies, net | Note 8. Cash Surrender Value of Life Insurance Policies, net The cash surrender value of all life insurance policies held by us, net of loans and related accrued interest, was $42.0 million and $44.9 million as of December 31, 2022 and 2021, respectively. Our wholly owned subsidiary, Earle M. Jorgensen Company (“EMJ”), is the owner and beneficiary of life insurance policies on all former nonunion employees of a predecessor company, including certain current employees of EMJ. These policies, by providing payments to EMJ upon the death of covered individuals, were designed to provide cash to EMJ in order to repurchase shares held by employees in EMJ’s former employee stock ownership plan and shares held individually by employees upon the termination of their employment. Reliance is also the beneficiary of key person life insurance policies held by a rabbi trust for the benefit of participants of the Reliance Supplemental Executive Retirement Plan. Cash surrender value of the life insurance policies increases by a portion of the amount of premiums paid and by investment income earned under the policies and decreases by the amount of cost of insurance charges, investment losses and interest on policy loans, as applicable. Annually, we borrow against the cash surrender value of policies to pay a portion of the premiums and accrued interest owed on loans against those policies. We borrowed $73.1 million, $68.0 million and $60.0 million, respectively, against the cash surrender value of certain policies, which was used to partially pay premiums and accrued interest owed of $93.0 million, $86.3 million and $76.8 million in 2022, 2021 and 2020, respectively. The interest rate on outstanding borrowings under the EMJ life insurance policies is fixed at 11.76% and the portion of the policy cash surrender value that the borrowings relate to earns interest and dividend income at 11.26%. The unborrowed portion of the policy cash surrender value earns income at a rate commensurate with certain risk-free U.S. Treasury bond yields but not less than 4.0%. All other life insurance policies earn investment income or incur losses based on the performance of the underlying investments held by the policies. As of December 31, 2022 and 2021, loans and accrued interest outstanding on EMJ’s life insurance policies were $849.5 million and $789.1 million, respectively. Income earned on our life insurance policies, cost of insurance charges and interest expense on borrowings against cash surrender values are included in the Other expense, net caption in the accompanying consolidated statements of income. See Note 15—“Other Expense (Income), net” for further information on the earnings and expenses of our life insurance policies. |
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| Debt | Note 9. Debt Debt consisted of the following:
Unsecured Credit Facility On September 3, 2020, we entered into a $1.5 billion unsecured five-year Amended and Restated Credit Agreement that amended and restated our then-existing $1.5 billion unsecured revolving credit facility. On January 12, 2023, the agreement was further amended to change the reference rate from LIBOR to SOFR (as amended, the “Credit Agreement”). Following the amendment, borrowings under the Credit Agreement were available at variable rates based on SOFR plus 1.10% or the bank prime rate and we currently pay a commitment fee at an annual rate of 0.175% on the unused portion of the revolving credit facility. The applicable margins over SOFR 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. As of December 31, 2022 and 2021, we had no outstanding borrowings on the revolving credit facility. As of December 31, 2022 and 2021, we had $7.7 million and $8.9 million, respectively, of letters of credit outstanding under the revolving credit facility. Senior Unsecured Notes On January 15, 2023, we redeemed the $500.0 million aggregate outstanding principal amount of our 4.50% senior notes due 2023 in full. We funded this redemption using cash on hand. 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 each series of the notes at a price equal to 101% of their principal amount plus accrued and unpaid interest. Other Notes, Revolving Credit and Letters of Credit/Letters of Guarantee Facilities A revolving credit facility with a credit limit of $7.8 million is in place for an operation in Asia with an outstanding balance of $2.2 million and $4.7 million as of December 31, 2022 and 2021, respectively. Various industrial revenue bonds had combined outstanding balances of $7.4 million and $7.7 million as of December 31, 2022 and 2021, respectively, and have maturities through 2027. A standby letters of credit/letters of guarantee agreement with one of the lenders under our Credit Agreement provides letters of credit and/or letters of guarantee in an amount not to exceed $50.0 million in the aggregate. As of December 31, 2022, a total of $18.7 million of letters of credit/guarantee were outstanding under this facility. Covenants 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, 2022. Debt Maturities The following is a summary of aggregate maturities of long-term debt for each of the next five years and thereafter:
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| Leases | Note 10. Leases 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 spaces. Our leases of facilities and other spaces expire at various times through 2045 and our ground leases expire at various times through 2068. Nearly all of our leases are operating leases; we have recognized finance right-of-use assets and of less than $1.0 million. The following is a summary of our lease cost:
Our operating lease costs include payments to various related parties that are not executive officers of the Company, in the amounts of $0.2 million, $1.9 million and $1.9 million in 2022, 2021 and 2020, respectively. These related party leases are for buildings leased to certain of the companies we have acquired and expire through 2023. Supplemental cash flow and balance sheet information is presented below:
Maturities of operating lease liabilities as of December 31, 2022 are as follows:
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| Income Taxes | Note 11. Income Taxes 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 2019 and state and local tax examinations before 2018. Significant components of the provision for income taxes attributable to continuing operations were as follows:
Components of U.S. and international income before income taxes were as follows:
The reconciliation of income tax at the U.S. federal statutory tax rate to income tax expense is as follows:
Significant components of our deferred tax assets and liabilities are as follows:
As of December 31, 2022, we had $3.6 million of state and $0.4 million of acquired federal net operating loss carryforwards (“NOLs”), which are available to offset future income taxes. The state and federal NOLs expire in various years from 2023 through 2042, if not utilized. We believe that it is more likely than not that we will be able to realize these NOLs within their respective carryforward periods. The Company believes it is more likely than not that it will generate sufficient future taxable income to realize its deferred tax assets. Unrecognized Tax Benefits We are under audit by various state jurisdictions for years 2017 through 2019, 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:
As of December 31, 2022, $1.4 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 $0.3 million and $0.7 million as of December 31, 2022 and 2021, respectively. 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. |
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| Stock-Based Compensation Plans | Note 12. Stock-Based Compensation Plans We make annual grants of long-term equity incentive awards to officers and key employees under our Second Amended and Restated 2015 Incentive Award Plan in the forms of service-based restricted stock units (“RSUs”) and performance-based restricted stock units (“PSUs”) that each have approximately vesting periods. We also grant the non-employee members of our Board of Directors fully vested stock awards under our Directors Equity Plan. At December 31, 2022, an aggregate of 1,690,229 shares were authorized for future grant under our various stock-based compensation plans. Awards that expire or are canceled without delivery of shares of our common stock and shares withheld related to net share settlements generally become available for issuance under the plans. As RSUs and PSUs vest, we issue new shares of Reliance common stock. Stock Awards In 2022, 2021 and 2020, we granted 6,136; 6,248; and 12,807 fully vested stock awards, respectively, to the non-employee members of the Board of Directors. The fair values of the stock awards granted in 2022, 2021 and 2020, were $182.41 per share, $166.39 per share and $91.30 per share, respectively, determined based on the closing price of our common stock on the respective grant dates. Restricted Stock Units In 2022, 2021 and 2020, we granted to key employees equity awards consisting of RSUs and PSUs in aggregate amounts of 305,249 units, 318,495 units and 540,547 units, respectively. Each RSU and PSU includes a service-based condition and consists of a right to receive shares 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 award is settled. In 2022, 2021 and 2020, we granted 192,798, 191,139, and 330,144 RSUs, respectively, that provide the right to receive one share of our common stock and cliff vest at , and December 1, 2022, respectively, if the recipient is an employee of the Company on those dates. Additionally, in 2022, 2021 and 2020, we granted 112,451, 127,356 and 210,403 PSUs, respectively, that included performance goals and the right to receive a maximum of two shares of our common stock and vest only upon the satisfaction of the service-based condition and certain performance targets for the three-year periods ending , and December 31, 2022, respectively. The fair values of the 2022, 2021 and 2020 RSUs and PSUs granted were $187.31 per share, $141.41 per share and $82.81 per share, respectively, determined based on the closing price of our common stock on the respective grant dates. In 2022, 2021 and 2020, we made payments of $39.7 million, $21.2 million and $23.1 million, respectively, to tax authorities on our employees’ behalf for shares withheld related to net share settlements. A summary of the status of our unvested RSUs and PSUs as of December 31, 2022 and changes during the year then ended is as follows:
The fair values as of the respective vesting dates of RSUs and PSUs vested during 2022, 2021 and 2020 were $147.2 million, $126.0 million and $54.0 million, respectively. PSUs totaling 196,944 units that vested on December 31, 2022 were settled in February 2023 through the issuance of 393,888 equivalent shares of our common stock. Unrecognized Compensation Cost and Tax Benefits As of December 31, 2022, there was $73.9 million of total unrecognized compensation cost related to unvested RSUs and PSUs in an aggregate amount of 582,012 units that are expected to be settled through the issuance of 802,184 shares of our common stock. The unrecognized compensation cost is expected to be recognized over a weighted average period of 1.7 years. The tax benefit realized from our stock-based compensation plans in 2022, 2021 and 2020 was $8.0 million, $6.8 million and $6.1 million, respectively. |
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| Employee Benefits | Note 13. Employee Benefits Defined Contribution Plans Effective in 1998, the Reliance Steel & Aluminum Co. Master 401(k) Plan (the “Master 401(k) Plan”) 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 401(k) Plan. Eligibility occurs after 30 days of service and the Company contribution vests at 25% per year. Our Other Defined Contribution Plans include the Precision Strip Retirement and Savings Plan and plans at certain foreign subsidiaries that have not merged their plans into the Master 401(k) Plan as of December 31, 2022. We also sponsor the Reliance Steel & Aluminum Co. Employee Stock Ownership Plan, a tax-qualified noncontributory employee stock ownership plan, for certain salaried and hourly employees of the Company. The plan is closed to new enrollees and the Company is not currently making annual contributions to the plan. Supplemental Executive Retirement Plans Effective January 1996, we adopted the Supplemental Executive Retirement Plan (“Reliance SERP”), 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 employees’ earnings. We recognized settlement losses of $2.3 million and $6.7 million in the years ended December 31, 2022 and 2020, respectively, related to the payment of benefits under the Reliance SERP. Life insurance policies were purchased for most individuals covered by the Reliance SERP and held within a rabbi trust. See Note 8—“Cash Surrender Value of Life Insurance Policies, net” for further discussion of our life insurance policies. Separate supplemental executive retirement plans exist for certain wholly owned subsidiaries of the Company (together with the Reliance SERP, the “SERPs”), each of which provides postretirement pension benefits to certain former key employees. All SERPs have been frozen to new participants. Deferred Compensation Plan In December 2008, the Reliance Deferred Compensation Plan (the “DCP”) was established for certain officers and key employees of the Company. Account balances from various compensation plans of subsidiaries were contributed and consolidated into this new deferred compensation plan. Plan participants may contribute a portion of their eligible compensation to the plan and Reliance currently makes contributions to the plan for certain participants. During 2021, we established a rabbi trust to fund our obligations under the DCP. The rabbi trust is an irrevocable grantor trust to which we may contribute assets for the purpose of funding the DCP. Although we may not use the assets of the rabbi trust for any purpose other than meeting our obligations under the DCP, the assets of the rabbi trust remain subject to the claims of our creditors. The aggregate fair value of the marketable securities held by the rabbi trust as of December 31, 2022 and 2021 were $41.2 million and $40.9 million, respectively, and the amount of our obligations to the participants under the DCP on those dates were also $41.2 million and $40.9 million, respectively. The rabbi trust assets and our liability under the DCP are included in the Other long-term assets and Other long-term liabilities captions of our consolidated balance sheets. The Company expects to contribute $2.0 million to the plan during 2023. Multiemployer Plans 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 2022, 2021 and 2020 our contributions to these plans were $5.4 million, $4.8 million and $5.3 million, respectively. Some of the plans we participate in are in endangered, critical 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. Defined Benefit Plans Our wholly owned subsidiary, EMJ, maintains a qualified defined benefit pension plan (the “Defined Benefit Plan”) for certain union employees. The plan generally provides benefits of stated amounts for each year of service or provides benefits based on the participant’s hourly wage rate and years of service. The plan permits the sponsor, at any time, to amend or terminate the plan. We also maintained frozen defined benefit plans (together with the Defined Benefit Plan, the “Defined Benefit Plans”), which were merged into a single plan that was terminated during 2020, which resulted in our recognition of a $12.7 million settlement loss. 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 Plan:
As of December 31, 2022 and 2021, the following amounts were recognized on the balance sheet:
The accumulated benefit obligation for the SERPs was $17.1 million and $32.9 million as of December 31, 2022 and 2021, respectively. At December 31, 2022, the fair value of the Defined Benefit Plan assets of $56.7 million exceeded the accumulated benefit obligation of $55.0 million. At December 31, 2021, the accumulated benefit obligation of the Defined Benefit Plan of $74.5 million exceeded the fair value of plan assets of $70.9 million. Details of net periodic benefit cost related to the SERPs and Defined Benefit Plans are presented below:
Net periodic benefit cost related to the SERPs and the Defined Benefit Plans is presented in our consolidated statements of income, as summarized below:
Assumptions used to determine net periodic benefit cost are detailed below:
Assumptions used to determine the benefit obligation are detailed below:
Employer contributions of $0.8 million are expected during 2023 to the SERPs and none for the Defined Benefit Plan. Plan Assets and Investment Policy The weighted-average asset allocations of our Defined Benefit Plan by asset category were as follows:
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. 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. The fair value measurements of the investments held by our Defined Benefit Plan fall within the following levels of the fair value hierarchy as of December 31, 2022 and 2021:
Summary Disclosures—SERPs and Defined Benefit Plan The following is a summary of benefit payments under the SERPs and the Defined Benefit Plan, which reflect expected future employee service, as appropriate, expected to be paid in the periods indicated:
Contributions to Reliance Sponsored Retirement Plans Our expense for Reliance-sponsored retirement plans was as follows:
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Equity |
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| Equity | Note 14. Equity Common Stock We have paid regular quarterly cash dividends on our common stock for 63 consecutive years. Our Board of Directors increased the quarterly dividend to $0.625 per share in February 2020 from $0.55 per share, to $0.6875 per share in February 2021, to $0.875 per share in February 2022, and to $1.00 per share in February 2023. The holders of Reliance common stock are entitled to one vote per share on each matter submitted to a vote of stockholders. Shares Outstanding Issued and outstanding common shares were as follows:
Share Repurchases On July 26, 2022, our Board of Directors amended our share repurchase program to increase the remaining repurchase authorization to $1.0 billion. The share repurchase program does not obligate us to repurchase any specific number of shares, does not have a specific expiration date and may be suspended or discontinued at any time. Repurchased and subsequently retired shares are restored to the status of authorized but unissued shares. As of December 31, 2022, we had remaining authorization under the plan to repurchase $680.7 million of our common shares. We repurchase shares through open market purchases and transactions structured through investment banking institutions under plans relying on Rule 10b5-1 and/or Rule 10b-18 under the Exchange Act. Our share repurchase activity for the past three years consisted of the following:
Preferred Stock 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 . 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. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss included the following:
Foreign currency translation adjustments have not been adjusted for income taxes. Pension and postretirement benefit plan adjustments are amortized over service periods and reflected in the amortization of net loss component of our net periodic benefit cost or are otherwise recognized as a loss as a result of plan settlements. Pension and postretirement benefit adjustments are net of taxes of $1.3 million and $3.3 million as of December 31, 2022 and 2021, respectively. The income tax effects are released from accumulated other comprehensive loss and included in our income tax provision as obligations under our pension and postretirement plans are settled. In 2022, $0.3 million of income tax effects were released related to the partial settlement of the Reliance SERP. See Note 13—“Employee Benefits” for further information on our 2022 plan settlement. |
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Other Expense (Income), net |
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| Other Expense (Income), net | Note 15. Other Expense (Income), net Significant components of Other expense, net are as follows:
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Commitments and Contingencies |
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| Commitments and Contingencies. | |
| Commitments and Contingencies | Note 16. Commitments and Contingencies Purchase Commitments As of December 31, 2022, 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 $320.1 million, with amounts in 2023, 2024 and thereafter being $179.1 million, $44.9 million and $96.1 million, respectively. Collective Bargaining Agreements As of December 31, 2022, approximately 1,900, or 13%, of our total employees were covered by 61 collective bargaining agreements at 52 of our different locations, which expire at various times over the next five years. Approximately 500 of our employees are covered by 23 different collective bargaining agreements that will expire during 2023. Environmental Contingencies 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. 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. Legal Matters From time to time, we are named as a defendant in legal actions. These actions generally 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. Risks and Uncertainties We continue to monitor the impact of the COVID-19 pandemic, and government actions and measures taken to prevent its spread, and the potential to affect our operations. In addition to COVID-19, the conflict between Russia and Ukraine and macroeconomic disruptions such as inflation and the potential for an economic recession or slowdown could also significantly impact the demand for our products and services, as well as those of our customers and suppliers, and our estimates and judgments may be subject to greater volatility than in the past. Refer to Part I, Item 1A “Risk Factors” for further discussion of risks that could adversely affect our estimates and judgments. |
Earnings Per Share |
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| Earnings Per Share | Note 17. Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share:
The computations of earnings per share for 2022, 2021 and 2020 do not include 83,857, 116,206 and 183,508 weighted average shares, respectively, in respect of outstanding RSUs and PSUs, because their inclusion would have been anti-dilutive. |
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Segment Information |
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| Segment Information | Note 18. Segment Information We have one operating and reportable segment—metals service centers. Although a variety of products or services are sold at our various locations, in total, gross sales were comprised of the following in each of the three years ended December 31:
The following table summarizes consolidated financial information of our U.S. and foreign operations:
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Impairment and Restructuring Charges |
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| Impairment and Restructuring Charges | Note 19. Impairment and Restructuring Charges Our impairment and restructuring charges consisted of the following:
We recorded impairment and restructuring charges of $157.8 million in 2020, which was substantially comprised of a $137.5 million impairment and restructuring charge recognized during the first quarter of 2020 mainly due to our reduced long-term outlook for our businesses serving the energy (oil and natural gas) market and to a lesser extent charges related to the closure of certain locations where our outlook had turned negative based on the impacts from COVID-19 and our anticipated losses on the disposition of property, plant and equipment, and inventories. The measurement of intangible assets at fair value in 2021 and 2020 was determined using discounted cash flow techniques. The use of discounted cash flow models requires judgment and the use of inputs by management that are unobservable, including revenue forecasts, discount rates and long-term growth rates. Unobservable inputs also include the Company’s expectations of the assumptions market participants would use in pricing the eventual recovery of the oil and natural gas and aerospace industries based on the best available information in the circumstances at that time. |
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SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS |
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| SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | RELIANCE STEEL & ALUMINUM CO. SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS (in millions)
See accompanying report of independent registered public accounting firm. |
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Summary of Significant Accounting Policies (Policies) |
12 Months Ended |
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Dec. 31, 2022 | |
| Summary of Significant Accounting Policies | |
| Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Reliance Steel & Aluminum Co. and its subsidiaries (collectively referred to as “Reliance”, “the Company”, “we”, “our” or “us”). Our consolidated financial statements include the assets, liabilities and operating results of majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated. The ownership interests in our consolidated subsidiaries held by others are reflected as noncontrolling interests. Our investments in unconsolidated subsidiaries are recorded under the equity method of accounting.
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| Business | Business As a global diversified metal solutions provider, we operate a network of approximately 315 locations in 40 states and in 12 foreign countries (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.
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| Reclassification | Reclassification The accompanying consolidated balance sheet as of December 31, 2021 includes a reclassification of $43.2 million of deferred compensation plan liabilities from Long-term retirement benefits to Other long-term to conform to the current presentation. |
| Accounting Estimates | Accounting Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, such as allowances for credit losses, 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. The Company bases its estimates on historical experience and on various other assumptions that the Company believes to be reasonable under the circumstances. Actual results could differ from those estimates.
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| Accounts Receivable and Concentrations of Credit Risk | Accounts Receivable and Concentrations of Credit Risk Trade receivables are typically non-interest bearing and are recorded at amortized 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. 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 customer’s financial condition, with terms consistent in the industry and no collateral is required. The allowance for credit losses reflects the expected losses on our trade receivables and is determined based on customer-specific facts and the consideration of historical loss information, current conditions and reasonable and supportable forecasts using a loss-rate approach. Amounts are written-off against the allowance in the period we determine that the receivable is uncollectible. 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. We do not consider ourselves to have any significant concentrations of credit risk. |
| Inventories | Inventories The majority of our inventory is valued using the last-in, first-out (“LIFO”) 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 metal wholesaling industry as well as fluctuations in our product mix and on-hand inventory levels.
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| Fair Values of Financial Instruments | Fair Values of Financial Instruments Fair values of cash and cash equivalents, accounts receivable, accounts payable, accrued expenses and other current liabilities, and current maturities of operating lease liabilities 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 with an aggregate face value of $1.65 billion as of December 31, 2022 and 2021. The aggregate fair value of these senior unsecured notes based on quoted market prices was $1.53 billion and $1.75 billion at December 31, 2022 and 2021, respectively, compared to their aggregate carrying value of $1.64 billion. The estimated fair values of our senior unsecured notes are based on Level 2 inputs, including benchmark yields, reported trades and broker/dealer quotes. Fair values of our other financial instruments, which include assets held within rabbi trusts, are comprised of assets that are generally based on quoted market prices for identical instruments that trade in active markets.
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| Cash Equivalents | Cash Equivalents 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.
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| Goodwill and Other Indefinite-Lived Intangible Assets | Goodwill and Other Indefinite-Lived Intangible Assets 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. 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 on November 1 of each year. No impairment of goodwill was determined to exist in any of the years presented. We recognized impairment losses of $4.7 million and $67.8 million related to our other intangible assets with indefinite lives in 2021 and 2020. No impairment losses were recognized related to our other intangible assets with indefinite lives in 2022. See Note 19—“Impairment and Restructuring Charges” for further discussion of our impairment losses.
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| Long-Lived Assets | Long-Lived Assets 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 to 50 years and machinery and equipment over to 20 years. 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 didn’t recognize any impairment losses for long-lived assets in 2022 and 2021. We recognized $9.3 million of losses for property, plant and equipment and $30.7 million for intangible assets subject to amortization in 2020. See Note 19—“Impairment and Restructuring Charges” for further discussion of our impairment losses.
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| Leases | Leases We determine if an arrangement is a lease at inception. Our lease agreements generally contain only lease components. Our lease payments are generally fixed with certain leases containing variable payments related to Consumer Price Index (“CPI”) annual adjustments. Right-of-use assets and lease liabilities are recognized on the balance sheet at the present value of the future lease payments at the lease commencement date. Certain of our lease terms include periods under renewal options when it is reasonably certain that we will exercise that option. We generally include optional renewal periods when determining our lease terms and future lease payments. The interest rate used to determine the present value of future lease payments is our incremental borrowing rate that is estimated to approximate the interest rate on a collateralized basis with similar terms and payments. Operating lease cost is recognized on a straight-line basis over the lease term.
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| Revenue Recognition | Revenue Recognition 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. Sales and value-added taxes collected from customers are excluded from our reported sales. 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, 2022, 2021 and 2020. Metal Sales 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 2022, 2021 and 2020, shipping and handling costs included in Warehouse, delivery, selling, general and administrative (“SG&A”) expenses were $509.7 million, $424.6 million and $357.4 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. Toll Processing and Logistics Toll processing services relate to the processing of customer-owned metal. Logistics services primarily include transportation and storage 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. Seasonality Some of our customers are in seasonal businesses, especially customers in the construction industry and related businesses. 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. The number of shipping days in each quarter also has an impact on our quarterly sales and profitability. We cannot predict whether period-to-period fluctuations will be consistent with historical patterns. Results of any one or more quarters are therefore not necessarily indicative of annual results.
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| Stock-Based Compensation | Stock-Based Compensation 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 $65.3 million, $70.8 million and $42.2 million in 2022, 2021 and 2020, respectively, and is included in the SG&A caption of our consolidated statements of income.
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| Environmental Remediation Costs | Environmental Remediation Costs 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 insurance policies and 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—“Commitments and Contingencies” for further discussion of our environmental remediation matters.
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| Income Taxes | Income Taxes 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. We perform 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 measured as 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.
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| Foreign Currencies | Foreign Currencies The currency effects of translating into U.S. dollars the financial statements of our foreign subsidiaries, which typically use the local currency of the countries in which they are located, are included in other comprehensive (loss) income. Gains and losses resulting from foreign currency transactions are included in the results of operations in the Other expense, net caption and amounted to $6.2 million, $4.0 million and $2.3 million of losses in 2022, 2021 and 2020, respectively. |
| Impact of Recently Issued Accounting Standards - Adopted | Impact of Recently Issued Accounting Standards—Adopted Reference Rate Reform—In March 2020, the Financial Accounting Standards Board (“FASB”) issued accounting changes that provided optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Interbank Offered Rate (“LIBOR”) for deposits of U.S. dollars or another reference rate expected to be discontinued because of reference rate reform. In December 2022, the FASB deferred the sunset date to apply these accounting changes prospectively through December 31, 2024. In January 2023, we utilized the optional expedients and exceptions provided in these accounting changes to the amendment of our credit agreement that included a change to the reference rate from LIBOR to the Secured Overnight Finance Rate (“SOFR”). See Note 9—“Debt” for further discussion of the amendment to our credit agreement. The transition from LIBOR to SOFR did not have a material impact on our consolidated financial statements. |
Acquisitions (Tables) - 2021 Acquisitions |
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| Acquisitions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of allocation of the purchase price of acquisition to the fair value of the assets acquired and liabilities assumed |
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| Schedule of pro forma information |
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Inventories (Tables) |
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| Schedule of inventories |
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| Schedule of changes in the LIFO valuation reserve |
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Revenues (Tables) |
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| Revenues. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of disaggregation of revenue | The following table presents our sales disaggregated by product and service.
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Goodwill (Tables) |
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| Goodwill. | ||||||||||||||||||||||||||||
| Schedule of changes in the carrying amount of goodwill |
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Intangible Assets, net (Tables) |
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| Intangible Assets, net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of intangible assets, net |
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| Summary of estimated aggregate amortization expense |
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Debt (Tables) |
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| Summary of debt |
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| Summary of aggregate maturities of long-term debt for each of the next five years and thereafter |
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Leases (Tables) |
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| Schedule of lease cost |
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| Schedule of supplemental cash flow and other lease information |
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| Schedule of maturities of operating lease liabilities |
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Income Taxes (Tables) |
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| Income Taxes | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of components of the provision for income taxes attributable to continuing operations |
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| Components of U.S. and international income before income taxes |
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| Schedule of reconciliation of income tax at the U.S. federal statutory tax rates to income tax expense |
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| Schedule of components of the Company's deferred tax assets and liabilities |
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| Schedule of reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits |
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Stock-Based Compensation Plans (Tables) |
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stock-Based Compensation Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of the status of the Company's restricted stock units and changes during the year | A summary of the status of our unvested RSUs and PSUs as of December 31, 2022 and changes during the year then ended is as follows:
|
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Employee Benefits (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 |
|
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| Schedule of Company's expense for Reliance-sponsored retirement plans |
|
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| SERP's 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 |
|
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| Schedule of amounts recognized in the statement of financial position |
|
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| Schedule of details of net periodic pension expense | Details of net periodic benefit cost related to the SERPs and Defined Benefit Plans are presented below:
Net periodic benefit cost related to the SERPs and the Defined Benefit Plans is presented in our consolidated statements of income, as summarized below:
|
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| Schedule of assumptions used to determine net periodic benefit cost |
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| Schedule of assumptions used to determine the benefit obligation |
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| Defined Benefit Plans | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Employee Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of weighted-average asset allocations of the Company's Defined Benefit Plans by asset category |
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| Schedule of fair value measurements of Defined Benefit Plans assets |
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Equity (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of issued and outstanding common shares activity |
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| Schedule of share repurchase activity |
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| Schedule of accumulated other comprehensive loss |
|
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Other Expense (Income), net (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Expense (Income), net. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of significant components of other expense (income), net |
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Earnings Per Share (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Earnings Per Share | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Computation of basic and diluted earnings per share |
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Segment Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Information | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of sales, by products or services |
|
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| Summary of the Company's operations by geographic location based on where sales originated from |
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Impairment and Restructuring Charges (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Impairment and Restructuring Charges | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of impairment and restructuring charges |
|
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Summary of Significant Accounting Policies - Business (Details) |
12 Months Ended |
|---|---|
|
Dec. 31, 2022
item
location
| |
| Summary of Significant Accounting Policies | |
| Approximate number of locations in which company operates metal service center network | location | 315 |
| Number of states in which the company operates metal service center network | 40 |
| Number of countries in which entity operates outside the U.S. | 12 |
| Minimum number of products the company distributes | 100,000 |
Summary of Significant Accounting Policies - Reclassification (Details) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Reclassification | ||
| Other long-term liabilities | $ 51.4 | $ 50.2 |
| Deferred Compensation Plan Liabilities Reclassification | Reclassification Adjustment | ||
| Reclassification | ||
| Long-term retirement benefits | (43.2) | |
| Other long-term liabilities | $ 43.2 |
Summary of Significant Accounting Policies - Fair Value (Details) - USD ($) $ in Millions |
Dec. 31, 2022 |
Dec. 31, 2021 |
|---|---|---|
| Fair Values of Financial Instruments | ||
| Total debt | $ 1,659.6 | $ 1,662.4 |
| Senior Unsecured Notes - Publicly Traded | ||
| Fair Values of Financial Instruments | ||
| Carrying value, before deducting unamortized discount or premiums | 1,650.0 | 1,650.0 |
| Carrying value | 1,640.0 | 1,640.0 |
| Senior Unsecured Notes - Publicly Traded | Level 2 | ||
| Fair Values of Financial Instruments | ||
| Fair value | $ 1,530.0 | $ 1,750.0 |
Summary of Significant Accounting Policies - Goodwill and Other Indefinite-Lived Intangible Assets (Details) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
|
Dec. 31, 2022
USD ($)
item
segment
|
Dec. 31, 2021
USD ($)
segment
item
|
Dec. 31, 2020
USD ($)
item
segment
|
|
| 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 | $ 0.0 | $ 0.0 |
| Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 0.0 | $ 4.7 | $ 67.8 |
| Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Asset Impairment Charges | Asset Impairment Charges | |
Summary of Significant Accounting Policies - Long-Lived Assets (Details) - USD ($) |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Property, Plant and Equipment | |||
| Impairment losses of property, plant and equipment | $ 0 | $ 0 | $ 9,300,000 |
| Impairment losses of intangible assets, finite-lived | $ 30,700,000 | ||
| Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Asset Impairment Charges | ||
| 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 Accounting Policies - Revenue Recognition, Share-Based Compensation and Foreign Currencies (Details) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
|
Dec. 31, 2022
USD ($)
item
|
Dec. 31, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
|
| Revenue Recognition | |||
| Number of performance obligations from sales of metal products | item | 1 | ||
| Shipping and handling costs included in operating expenses | $ 509.7 | $ 424.6 | $ 357.4 |
| Share-Based Compensation | |||
| Stock-based compensation expense | 65.3 | 70.8 | 42.2 |
| Foreign Currencies | |||
| Net gain (loss) resulting from foreign currency transactions | $ (6.2) | $ (4.0) | $ (2.3) |
| Toll processing | |||
| Revenue Recognition | |||
| Number Of Days To Perform Services | 1 day | ||
Inventories (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Inventories | |||
| LIFO inventories - cost on FIFO method | $ 2,257.9 | $ 2,498.2 | |
| Cost on FIFO method higher than LIFO value | (743.8) | (820.4) | |
| Inventories - stated on LIFO method | 1,514.1 | 1,677.8 | |
| Inventories - stated on FIFO method | 481.2 | 387.2 | |
| Inventories | 1,995.3 | 2,065.0 | |
| LIFO inventory valuation reserve expense (income) | $ (76.6) | $ 704.8 | $ (22.0) |
Revenues (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Revenue Disaggregation | |||
| Revenue | $ 17,025.0 | $ 14,093.3 | $ 8,811.9 |
| Carbon steel | |||
| Revenue Disaggregation | |||
| Revenue | 9,487.7 | 8,532.0 | 4,647.4 |
| Stainless steel | |||
| Revenue Disaggregation | |||
| Revenue | 2,877.4 | 2,267.0 | 1,435.6 |
| Aluminum | |||
| Revenue Disaggregation | |||
| Revenue | 2,658.7 | 2,050.9 | 1,687.6 |
| Alloy | |||
| Revenue Disaggregation | |||
| Revenue | 741.0 | 547.5 | 436.5 |
| Toll processing and logistics | |||
| Revenue Disaggregation | |||
| Revenue | 554.2 | 470.7 | 387.5 |
| Copper and brass | |||
| Revenue Disaggregation | |||
| Revenue | 336.7 | 112.2 | 50.5 |
| Other and eliminations | |||
| Revenue Disaggregation | |||
| Revenue | $ 369.3 | $ 113.0 | $ 166.8 |
Goodwill (Details) - USD ($) $ in Millions |
12 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Change in the carrying amount of goodwill | ||
| Balance at the beginning of the period | $ 2,107.6 | $ 1,935.2 |
| Acquisitions | 172.0 | |
| Purchase price allocation adjustments | 5.3 | |
| Effect of foreign currency translation | (7.0) | 0.4 |
| Balance at the end of the period | 2,105.9 | 2,107.6 |
| Accumulated impairment losses | $ 0.0 | $ 0.0 |
Leases (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Operating lease cost | $ 91.4 | $ 82.2 | $ 82.1 |
| Operating lease cost from related parties | 0.2 | 1.9 | 1.9 |
| Cash payments for operating leases | 86.9 | 81.7 | 81.7 |
| Right-of-use assets obtained in exchange for operating lease obligations | $ 52.4 | $ 46.8 | $ 58.8 |
| Weighted average remaining lease term - operating leases | 6 years 7 months 6 days | 5 years 9 months 18 days | |
| Weighted average discount rate - operating leases | 3.80% | 3.30% | |
| Maturities of operating lease liabilities | |||
| 2023 | $ 59.1 | ||
| 2024 | 48.9 | ||
| 2025 | 36.3 | ||
| 2026 | 24.8 | ||
| 2027 | 17.5 | ||
| Thereafter | 64.8 | ||
| Total operating lease payments | 251.4 | ||
| Less: imputed interest | (33.7) | ||
| Total operating lease liabilities | 217.7 | ||
| Maximum | |||
| Finance right-of-use assets | 1.0 | ||
| Finance right-of-use obligations | $ 1.0 | ||
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits | |||
| Balance at the beginning of the year | $ 1.9 | $ 1.0 | $ 2.2 |
| Increases in tax positions for prior years | 0.8 | ||
| Increases in tax positions for current year | 1.0 | ||
| Settlements | (0.8) | (1.1) | |
| Lapse of statute of limitations | (0.5) | (0.1) | (0.1) |
| Balance at the end of the year | 1.4 | 1.9 | $ 1.0 |
| Unrecognized tax benefits, if recognized, would affect the effective tax rate | 1.4 | ||
| Accrued interest and penalties on uncertain tax positions | $ 0.3 | $ 0.7 | |
Stock-Based Compensation Plans - Stock Options and RSUs (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Share-based compensation plans | |||
| Shares authorized for future grant | 1,690,229 | ||
| Stock options and RSUs | |||
| Additional share-based compensation disclosures | |||
| Tax benefit realized from option and RSU exercises | $ 8.0 | $ 6.8 | $ 6.1 |
Employee Benefits - Defined Contribution Plan Information (Details) |
12 Months Ended |
|---|---|
Dec. 31, 2022 | |
| Master 401(k) Plan | |
| Eligibility period of service | 30 days |
| Vesting percentage per year | 25.00% |
Employee Benefits - Defined Benefit Plan Termination (Details) - USD ($) $ in Millions |
12 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2020 |
|
| Employee Benefits | ||
| Settlement loss | $ 2.3 | $ 19.4 |
| Frozen Defined Benefit Plan | ||
| Employee Benefits | ||
| Settlement loss | $ 12.7 | |
Employee Benefits - Postretirement Plan and Summary Information for All Defined Benefit Plans (Details) $ in Millions |
Dec. 31, 2022
USD ($)
|
|---|---|
| Supplemental Executive Retirement 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 | |
| 2023 | $ 0.8 |
| 2024 | 0.8 |
| 2025 | 0.8 |
| 2026 | 0.8 |
| 2027 | 1.2 |
| 2028-2032 | 20.7 |
| 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 | |
| 2023 | 2.6 |
| 2024 | 2.7 |
| 2025 | 2.9 |
| 2026 | 3.1 |
| 2027 | 3.2 |
| 2028-2032 | $ 18.0 |
Equity - Reincorporation, Common Stock (Details) |
1 Months Ended | 12 Months Ended | ||||||
|---|---|---|---|---|---|---|---|---|
|
Feb. 28, 2023
$ / shares
|
Feb. 28, 2022
$ / shares
|
Feb. 28, 2021
$ / shares
|
Feb. 29, 2020
$ / shares
|
Feb. 28, 2019
$ / shares
|
Dec. 31, 2022
item
$ / shares
|
Dec. 31, 2021
$ / shares
|
Dec. 31, 2020
$ / shares
|
|
| Common Stock | ||||||||
| The number of consecutive years the company has paid regular common stock quarterly dividends. | 63 | |||||||
| Votes per share of common stock | 1 | |||||||
| Common stock quarterly dividend per share (in dollars per share) | $ / shares | $ 1.00 | $ 0.875 | $ 0.6875 | $ 0.625 | $ 0.55 | $ 3.50 | $ 2.75 | $ 2.50 |
Equity - Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions |
12 Months Ended | |
|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
|
| Schedule of accumulated other comprehensive loss | ||
| Balance at the beginning of the period | $ (68.9) | |
| Current-year change | (17.4) | |
| Balance at the end of the period | (86.3) | |
| Deferred tax assets in accumulated other comprehensive loss, pension liabilities | 1.3 | $ 3.3 |
| Income tax portion attributable to settlement of Reliance SERP | 0.3 | |
| Foreign Currency Translation Loss | ||
| Schedule of accumulated other comprehensive loss | ||
| Balance at the beginning of the period | (55.2) | |
| Current-year change | (28.8) | |
| Balance at the end of the period | (84.0) | |
| Pension and Postretirement Benefit Plan Adjustments, Net of Tax | ||
| Schedule of accumulated other comprehensive loss | ||
| Balance at the beginning of the period | (13.7) | |
| Current-year change | 11.4 | |
| Balance at the end of the period | $ (2.3) |
Commitments and Contingencies - Purchase Commitments (Details) - Aerospace materials $ in Millions |
Dec. 31, 2022
USD ($)
|
|---|---|
| Purchase Commitments | |
| Total amount of purchase commitments | $ 320.1 |
| 2023 | 179.1 |
| 2024 | 44.9 |
| Thereafter | $ 96.1 |
Commitments and Contingencies - Collective Bargaining Agreements and Environmental Contingencies (Details) |
12 Months Ended |
|---|---|
|
Dec. 31, 2022
item
location
employee
| |
| 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 | 13.00% |
| Number of employees | employee | 1,900 |
| Number of collective bargaining agreements that expire over the next five years | item | 61 |
| Expiration period of collective bargaining agreements | 5 years |
| Employees covered by collective bargaining agreements that expire during 2023 | |
| Collective Bargaining Agreements | |
| Number of employees | employee | 500 |
| Number of collective bargaining agreements that expire within one year | item | 23 |
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Numerator: | |||
| Net income attributable to Reliance | $ 1,840.1 | $ 1,413.0 | $ 369.1 |
| Denominator: | |||
| Weighted average shares outstanding (in shares) | 60,559,000 | 63,217,000 | 64,328,000 |
| Dilutive effect of stock-based awards (in shares) | 936,000 | 1,110,000 | 935,000 |
| Weighted average diluted shares outstanding (in shares) | 61,495,000 | 64,327,000 | 65,263,000 |
| Earnings per share attributable to Reliance stockholders - basic (in dollars per share) | $ 30.39 | $ 22.35 | $ 5.74 |
| Earnings per share attributable to Reliance stockholders - diluted (in dollars per share) | $ 29.92 | $ 21.97 | $ 5.66 |
| Diluted shares | |||
| Weighted average shares, respectively, for RSU's, not included in the diluted calculation due to their anti-dilutive effect | 83,857 | 116,206 | 183,508 |
Segment Information - Summary of sales by product and service (Details) |
12 Months Ended | ||
|---|---|---|---|
|
Dec. 31, 2022
item
segment
|
Dec. 31, 2021
segment
item
|
Dec. 31, 2020
item
segment
|
|
| Segment Information | |||
| Number of reportable segments | item | 1 | 1 | 1 |
| Number of operating segments | segment | 1 | 1 | 1 |
| Sales (as a percent) | 100.00% | 100.00% | 100.00% |
| Carbon steel | |||
| Segment Information | |||
| Sales (as a percent) | 54.00% | 58.00% | 51.00% |
| Stainless steel | |||
| Segment Information | |||
| Sales (as a percent) | 17.00% | 16.00% | 16.00% |
| Aluminum | |||
| Segment Information | |||
| Sales (as a percent) | 15.00% | 14.00% | 19.00% |
| Alloy | |||
| Segment Information | |||
| Sales (as a percent) | 4.00% | 4.00% | 5.00% |
| Toll processing and logistics | |||
| Segment Information | |||
| Sales (as a percent) | 3.00% | 3.00% | 4.00% |
| Copper and brass | |||
| Segment Information | |||
| Sales (as a percent) | 2.00% | 1.00% | 1.00% |
| Other and eliminations | |||
| Segment Information | |||
| Sales (as a percent) | 5.00% | 4.00% | 4.00% |
Segment Information - Geographic Location (Details) - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Consolidated financial information of the Company's operations by geographic location | |||
| Net sales | $ 17,025.0 | $ 14,093.3 | $ 8,811.9 |
| Long-lived assets | 5,443.3 | 5,375.9 | 4,994.0 |
| United States | |||
| Consolidated financial information of the Company's operations by geographic location | |||
| Net sales | 15,978.6 | 13,371.7 | 8,180.7 |
| Long-lived assets | 5,051.9 | 4,971.2 | 4,709.1 |
| Foreign Countries | |||
| Consolidated financial information of the Company's operations by geographic location | |||
| Net sales | 1,046.4 | 721.6 | 631.2 |
| Long-lived assets | $ 391.4 | $ 404.7 | $ 284.9 |
Impairment and Restructuring Charges (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||
|---|---|---|---|---|
Mar. 31, 2020 |
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Impairment and Restructuring Charge | ||||
| Intangible assets, net | $ 4,700,000 | $ 98,500,000 | ||
| Property, plant and equipment | $ 0 | 0 | 9,300,000 | |
| Operating lease right-of-use assets | 200,000 | |||
| Total impairment charges | 4,700,000 | 108,000,000.0 | ||
| Total impairment and restructuring charge | $ 137,500,000 | 1,400,000 | 4,800,000 | 157,800,000 |
| Cost of sales | ||||
| Impairment and Restructuring Charge | ||||
| Restructuring | 38,200,000 | |||
| Warehouse, delivery, selling, general and administrative expense | ||||
| Impairment and Restructuring Charge | ||||
| Restructuring | $ 1,400,000 | $ 100,000 | $ 11,600,000 | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - Allowance for doubtful accounts - USD ($) $ in Millions |
12 Months Ended | ||
|---|---|---|---|
Dec. 31, 2022 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
| Movement in valuation and qualifying accounts | |||
| Balance at Beginning of Year | $ 26.7 | $ 19.0 | $ 17.8 |
| Additions Charged to Costs and Expenses | 3.4 | 9.8 | 5.8 |
| Deductions | 4.0 | 2.8 | 4.6 |
| Amounts Charged to Other Accounts | 0.7 | ||
| Balance at End of Year | $ 26.1 | $ 26.7 | $ 19.0 |