Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 29, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | RYI | |
Entity Registrant Name | RYERSON HOLDING CORPORATION | |
Entity Central Index Key | 0001481582 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 37,783,761 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net sales | $ 1,230.8 | $ 941.3 |
Cost of materials sold | 999.5 | 776.4 |
Gross profit | 231.3 | 164.9 |
Warehousing, delivery, selling, general, and administrative | 163.7 | 130.5 |
Restructuring and other charges | 0.3 | |
Operating profit | 67.3 | 34.4 |
Other income and (expense), net | (0.8) | 3.6 |
Interest and other expense on debt | (23.9) | (23.3) |
Income before income taxes | 42.6 | 14.7 |
Provision for income taxes | 13 | 4.1 |
Net income | 29.6 | 10.6 |
Less: Net income attributable to noncontrolling interest | 0.1 | 0.2 |
Net income attributable to Ryerson Holding Corporation | 29.5 | 10.4 |
Comprehensive income | 33.1 | 9.6 |
Less: Comprehensive income attributable to noncontrolling interest | 0.2 | 0.2 |
Comprehensive income attributable to Ryerson Holding Corporation | $ 32.9 | $ 9.4 |
Basic earnings per share | $ 0.79 | $ 0.28 |
Diluted earnings per share | $ 0.78 | $ 0.28 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Operating activities: | ||
Net income | $ 29.6 | $ 10.6 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 14.2 | 11.5 |
Stock-based compensation | 0.8 | 0.7 |
Deferred income taxes | 11.9 | 3 |
Provision for allowances, claims, and doubtful accounts | 1.3 | 1.2 |
Restructuring and other charges | 0.3 | |
Loss on retirement of debt | 0.2 | |
Non-cash (gain) loss from derivatives | (2.8) | 0.8 |
Other items | 0.3 | (0.1) |
Change in operating assets and liabilities: | ||
Receivables | (69.8) | (95.7) |
Inventories | (69.5) | (62) |
Other assets | 1 | 6.3 |
Accounts payable | 81 | 145.4 |
Accrued liabilities | (7.3) | 18.3 |
Accrued taxes payable/receivable | (2.8) | 0.6 |
Deferred employee benefit costs | (6.9) | (8.9) |
Net adjustments | (48.1) | 21.1 |
Net cash provided by (used in) operating activities | (18.5) | 31.7 |
Investing activities: | ||
Capital expenditures | (11.3) | (7.6) |
Proceeds from sale of property, plant, and equipment | 8.5 | 0.1 |
Net cash used in investing activities | (2.8) | (7.5) |
Financing activities: | ||
Repayment of debt | (11.8) | (0.1) |
Net proceeds (repayments) of short-term borrowings | 21.4 | (12.4) |
Net increase (decrease) in book overdrafts | 12.5 | (17.4) |
Principal payments on finance lease obligations | (3) | (3.1) |
Contingent payment related to acquisitions | (0.4) | |
Net cash provided by (used in) financing activities | 18.7 | (33) |
Net decrease in cash, cash equivalents, and restricted cash | (2.6) | (8.8) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 1.4 | (0.9) |
Net change in cash, cash equivalents, and restricted cash | (1.2) | (9.7) |
Cash, cash equivalents, and restricted cash—beginning of period | 24.3 | 78.5 |
Cash, cash equivalents, and restricted cash—end of period | 23.1 | 68.8 |
Cash paid during the period for: | ||
Interest paid to third parties, net | 6.3 | 3.9 |
Income taxes, net | 3.2 | 0.6 |
Noncash investing activities: | ||
Asset additions under adoption of accounting principal ASC 842 | 82.3 | |
Asset additions under operating leases | 2.6 | |
Asset additions under finance leases and sale-leasebacks | 0.1 | 1.9 |
Asset additions under financing arrangements | $ 0.3 | |
Noncash financing activities: | ||
Short term debt converted to capital lease | $ 7.6 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 22 | $ 23.2 |
Restricted cash | 1.1 | 1.1 |
Receivables less provisions | 590.4 | 521 |
Inventories | 876.9 | 806.3 |
Prepaid expenses and other current assets | 56.9 | 61.5 |
Total current assets | 1,547.3 | 1,413.1 |
Property, plant, and equipment, at cost | 839.4 | 838.4 |
Less: Accumulated depreciation | 358.7 | 349.4 |
Property, plant, and equipment, net | 480.7 | 489 |
Operating lease assets | 79.9 | |
Other intangible assets | 56.3 | 58.1 |
Goodwill | 120.3 | 120.3 |
Deferred charges and other assets | 5.2 | 5.8 |
Total assets | 2,289.7 | 2,086.3 |
Current liabilities: | ||
Accounts payable | 483.5 | 390.2 |
Salaries, wages, and commissions | 39.7 | 66.6 |
Other accrued liabilities | 95.1 | 77 |
Short-term debt | 18.7 | 27.3 |
Current portion of operating lease liabilities | 17.4 | |
Current portion of deferred employee benefits | 7.9 | 7.9 |
Total current liabilities | 662.3 | 569 |
Long-term debt | 1,137.8 | 1,126 |
Deferred employee benefits | 250.7 | 258.4 |
Noncurrent operating lease liabilities | 68.1 | |
Other noncurrent liabilities | 58 | 57 |
Total liabilities | 2,176.9 | 2,010.4 |
Commitments and contingencies | ||
Ryerson Holding Corporation stockholders’ equity: | ||
Preferred stock, value | ||
Common stock, value | 0.4 | 0.4 |
Capital in excess of par value | 381.8 | 381 |
Retained earnings | 46.7 | 14.2 |
Treasury stock at cost - Common stock, value | (6.6) | (6.6) |
Accumulated other comprehensive loss | (312.4) | (315.8) |
Total Ryerson Holding Corporation stockholders’ equity | 109.9 | 73.2 |
Noncontrolling interest | 2.9 | 2.7 |
Total equity | 112.8 | 75.9 |
Total liabilities and equity | $ 2,289.7 | $ 2,086.3 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Receivables, provisions | $ 3.6 | $ 2.5 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 7,000,000 | 7,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 37,665,580 | 37,656,505 |
Treasury stock at cost - Common stock, shares | 212,500 | 212,500 |
Financial Statements
Financial Statements | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Financial Statements | NOTE 1: FINANCIAL STATEMENTS Ryerson Holding Corporation (“Ryerson Holding”), a Delaware corporation, is the parent company of Joseph T. Ryerson & Son, Inc. (“JT Ryerson”), a Delaware corporation. Affiliates of Platinum Equity, LLC (“Platinum”) own approximately 21,037,500 shares of our common stock, which is approximately 56% of our issued and outstanding common stock. We are a leading value-added processor and distributor of industrial metals, with operations in the United States through JT Ryerson, in Canada through our indirect wholly-owned subsidiary Ryerson Canada, Inc., a Canadian corporation (“Ryerson Canada”), and in Mexico through our indirect wholly-owned subsidiary Ryerson Metals de Mexico, S. de R.L. de C.V., a Mexican corporation (“Ryerson Mexico”). In addition to our North American operations, we conduct materials distribution operations in China through an indirect wholly-owned subsidiary, Ryerson China Limited (“Ryerson China”). Unless the context indicates otherwise, Ryerson Holding, JT Ryerson, Ryerson Canada, Ryerson China, and Ryerson Mexico together with their subsidiaries, are collectively referred to herein as “Ryerson,” “we,” “us,” “our,” or the “Company.” Results of operations for any interim period are not necessarily indicative of results of any other periods or for the year. The condensed consolidated financial statements as of March 31, 2019 and for the three months ended March 31, 2019 and 2018 are unaudited, but in the opinion of management, include all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of results for such periods. The year-end condensed consolidated balance sheet data contained in this report was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | NO TE 2: RECENT ACCOUNTING PRONOUNCEMENTS Impact of Recently Issued Accounting Standards—Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “ Leases ” codified in Accounting Standards Codification (“ASC”) 842, “ Leases ” (“ASC 842”). The guidance in ASU 2016- We adopted the standard effective January 1, 2019 using the alternative modified retrospective transition method, which allows for application of the guidance at the beginning of the period in which it is adopted, rather than at the beginning of the earliest comparative period presented. Adoption of the new standard resulted in the recording of operating lease assets and liabilities of $ 82.3 In February 2018, the FASB issued ASU 2018-02, “ Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Impact of Recently Issued Accounting Standards—Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments. ” The amendment requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected, thus eliminating the probable initial recognition threshold and instead reflecting the current estimate of all expected credit losses. The amendment also requires that credit losses relating to available-for-sale debt securities be recorded through an allowance for credit losses rather than a write-down, thus enabling the ability to record reversals of credit losses in current period net income. The update is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted . In August 2018, the FASB issued ASU 2018-13, “ Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. In August 2018, the FASB issued ASU 2018-14, “ Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans. In August 2018, the FASB issued ASU 2018-15, “ Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash | 3 Months Ended |
Mar. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash | NOTE 3: CASH, CASH EQUIVALENTS, AND RESTRICTED CASH The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the beginning and ending cash balances shown in the Condensed Consolidated Statements of Cash Flows: March 31, December 31, 2019 2018 (In millions) Cash and cash equivalents $ 22.0 $ 23.2 Restricted cash 1.1 1.1 Total cash, cash equivalents, and restricted cash $ 23.1 $ 24.3 We have cash restricted for purposes of covering letters of credit that can be presented for potential insurance claims. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 4: INVENTORIES The Company primarily uses the last-in, first-out (LIFO) method of valuing inventory. Interim LIFO calculations are based on actual inventory levels. Inventories, at stated LIFO value, were classified at March 31, 2019 and December 31, 2018 as follows: March 31, December 31, 2019 2018 (In millions) In process and finished products $ 876.9 $ 806.3 If current cost had been used to value inventories, such inventories would have been $2 million lower The Company has consignment inventory at certain customer locations, which totaled $9.1 million and $9.3 million at March 31, 2019 and December 31, 2018, respectively. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | NOTE 5: LEASES The Company leases various assets including real estate, trucks, trailers, mobile equipment, processing equipment, and IT equipment. The Company has noncancelable operating leases expiring at various times through 2028, and finance leases expiring at various times through 2024. Policy Elections & Practical Expedients The Company has made an accounting policy election not to record leases with an initial term of 12 months or less (“short term leases”) on the balance sheet as allowed within ASC 842. Short term lease expense is recognized on a straight-line basis over the lease term. The Company has elected to apply the practical expedient that allows for the combination of lease and non-lease components for all asset classes. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed the Company to carry forward the historical lease classification for leases that existed at the transition date. Significant Judgments Many of the real estate leases include one or more options to renew, with renewal terms that can extend the lease term from one to 5 years or more. To determine the expected lease term, we include any noncancelable period within the lease agreement as well as any period covered by an option to extend the lease if we are reasonably certain to exercise the option. The equipment leases do not typically include options for renewal but do include options for purchase at the end of the lease. We determine the likelihood of exercising the option for purchase by assessing the option price versus the estimated fair value at the end of the lease term to determine if the option price is low enough that we are reasonably certain to exercise it. The depreciable life of finance lease assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Lease payments include fixed payments, the exercise price of a purchase option that is reasonably certain of exercise, variable payments based on a known index, and the amount probable that the Company will owe under a residual value guarantee. Variable lease payments that are not based on a known index are not included in lease payments and rather are expensed as incurred. For discount rates that are used to determine the amount of right of use assets, lease liabilities, and lease classification, the Company uses the interest rate implicit in the lease when known. If the rate implicit in the lease is not known, the Company will use its incremental borrowing rate defined as the interest rate swap rate that approximates the lease term plus the long-term expected spread on the $1.0 billion revolving credit facility amended as of June 28, 2018 (the “Ryerson Credit Facility”). We sublease certain real estate to third parties for facilities that we have closed. The following table summarizes the location and amount of lease assets and lease liabilities reported in our Condensed Consolidated Balance Sheet as of March 31, 2019: March 31, Leases Balance Sheet Location 2019 (In millions) Assets Operating lease assets Operating lease assets $ 79.9 Finance lease assets Property, plant, and equipment, net (a) 57.3 Total lease assets $ 137.2 Liabilities Current Operating Current portion of operating lease liabilities $ 17.4 Finance Other accrued liabilities 13.7 Noncurrent Operating Noncurrent operating lease liabilities 68.1 Finance Other noncurrent liabilities 25.9 Total lease liabilities $ 125.1 (a) Finance lease assets are recorded net of accumulated amortization of $16.3 million as of March 31, 2019. The following table summarizes the location and amount of lease expense reported in our Condensed Consolidated Statement of Comprehensive Income for the three months ended March 31, 2019: Three Months Ended March 31, Lease Expense Location of Lease Expense Recognized in Income 2019 (In millions) Operating lease expense Warehousing, delivery, selling, general, and administrative $ 5.6 Finance lease expense Amortization of lease assets Warehousing, delivery, selling, general, and administrative 1.6 Interest on lease liabilities Interest and other expense on debt 0.4 Variable lease expense Warehousing, delivery, selling, general, and administrative 0.7 Short-term lease expense Warehousing, delivery, selling, general, and administrative 0.5 Total lease expense $ 8.8 The following table presents maturity analysis of lease liabilities at March 31, 2019: Maturity of Lease Liabilities Operating Leases (a) Finance Leases Total (In millions) 2019 $ 15.4 $ 11.7 $ 27.1 2020 18.9 13.1 32.0 2021 16.7 8.3 25.0 2022 13.3 5.0 18.3 2023 10.4 2.7 13.1 After 2023 20.2 2.2 22.4 Total lease payments 94.9 43.0 137.9 Less: Interest (b) (9.4 ) (3.4 ) (12.8 ) Present value of lease liabilities (c) $ 85.5 $ 39.6 $ 125.1 (a) There were no operating leases with options to extend lease terms that are reasonably certain of being exercised and the operating lease payments exclude $7.9 million of legally binding minimum lease payments for leases signed but not yet commenced. (b) Calculated using the discount rate for each lease. (c) Includes the current portion of $17.4 million for operating leases and $13.7 million for finance leases. The following table shows the weighted-average remaining lease term and discount rate for operating and finance leases, respectively, at March 31, 2019: March 31, Lease Term and Discount Rate 2019 Weighted-average remaining lease term (years) Operating leases 5.6 Finance leases 3.2 Weighted-average discount rate Operating leases 3.8 % Finance leases 4.8 % Other information reported in our Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2019 is summarized below: Three Months Ended March 31, Other Information 2019 (In millions) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 5.1 Operating cash flows from finance leases 0.4 Financing cash flows from finance leases 3.0 Assets obtained in exchange for lease obligations: Adoption of accounting principal ASC 842 82.3 Operating leases 2.6 Finance leases 0.1 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | NOTE 6: GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill, which represents the excess of cost over the fair value of net assets acquired, amounted to $120.3 million Intangibles – Goodwill and Other, October 1, 2018 Other intangible assets with finite useful lives continue to be amortized over their useful lives. We review the recoverability of our long-lived assets whenever events or changes in circumstances indicate the carrying amount of such assets may not be recoverable. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | NOTE 7: On July 2, 2018 (“the acquisition date”) JT Ryerson purchased Central Steel & Wire Company (“CS&W”). CS&W is a leading metal service center with The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. At July 2, 2018 (In millions) Cash and cash equivalents $ 10.0 Receivables, less provisions 80.0 Inventories 179.8 Prepaid expenses and other current assets 1.7 Property, plant, and equipment 66.5 Other intangible assets 16.1 Total identifiable assets acquired 354.1 Accounts payable (49.7 ) Salaries, wages, and commissions (4.9 ) Other accrued liabilities (6.5 ) Deferred income taxes (27.7 ) Deferred employee benefits (31.8 ) Total liabilities assumed (120.6 ) Net identifiable assets acquired 233.5 Bargain purchase gain (70.0 ) Total purchase price $ 163.5 The Company used third-party valuation firms to estimate the fair values of property, plant, and equipment and intangible assets as well as to remeasure the deferred employee benefits liabilities. Inventory was valued by the Company using acquisition date fair values of the metals. The fair value of accounts receivables acquired is $80.0 million, with a gross amount of $81.8 million. The Company expects $1.8 million to be uncollectible. The $16.1 million of acquired intangible assets is related to a trademark acquired with a useful life of 10 years. The transaction resulted in a bargain purchase gain primarily due to higher inventory and property, plant, and equipment fair values compared to book values. The Company believes that the bargain purchase gain was primarily the result of the decision by majority stockholders of CS&W to sell their interests as CS&W had been experiencing increasing net losses. The agreed upon purchase price reflected the fact the seller would have needed to incur significant costs on future integration initiatives and to upgrade their infrastructure and computer systems in order to restore CS&W to a profitable basis. With our existing nationwide service center operations, we believe that our infrastructure will allow the necessary operational improvements to be implemented more efficiently than the seller. The gain of $70.0 million was included in Other income and (expense), net in the Condensed Consolidated Statements of Comprehensive Income in the second half of 2018. The Company recognized $1.6 million in acquisition-related fees, which was included in Warehousing, delivery, selling, general, and administrative expense in the Condensed Consolidated Statements of Comprehensive Income in the second half of 2018. Included in the three-month period ended March 31, 2019 financial results is $172.2 million of revenue and $4.4 million The following unaudited pro forma information presents consolidated results of operations for the three months ended March 31, 2019 and 2018 as if the acquisition of CS&W on July 2, 2018 had occurred on January 1, 2018: Pro Forma Three Months Ended March 31, 2019 2018 (In millions) Net sales $ 1,230.8 $ 1,112.4 Net income attributable to Ryerson Holding Corporation 29.5 6.7 On April 2, 2018, Ryerson Holding acquired Fanello Industries, LLC (“Fanello”), a privately owned metal service company located in Lavonia, Georgia. Pro forma information related to the acquisition of Fanello is not provided above as the impact on the Condensed Consolidated Statements of Comprehensive Income is not material. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 8: LONG-TERM DEBT Long-term debt consisted of the following at March 31, 2019 and December 31, 2018: March 31, December 31, 2019 2018 (In millions) Ryerson Credit Facility $ 558.3 $ 535.9 11.00% Senior Secured Notes due 2022 587.9 599.5 Foreign debt 18.7 19.5 Other debt 0.6 8.3 Unamortized debt issuance costs and discounts (9.0 ) (9.9 ) Total debt 1,156.5 1,153.3 Less: Short-term foreign debt 18.7 19.5 Less: Other short-term debt — 7.8 Total long-term debt $ 1,137.8 $ 1,126.0 Ryerson Credit Facility O n November 16, 2016, Ryerson entered into an amendment with respect to its $1.0 billion revolving credit facility (as amended, the “Old Credit Facility”), to reduce the total facility size from $1.0 billion to $750 million, reduce the interest rate on outstanding borrowings by 25 basis points, reduce commitment fees on amounts not borrowed by 2.5 basis points, and to extend the maturity date to November 16, 2021. The Old Credit Facility was amended a second time on June 28, 2018, to increase the facility size from $750 million to $1.0 billion. At March 31, 2019 , Ryerson had $558.3 million of outstanding borrowings, $12 million of letters of credit issued, and $411 million available under The Ryerson Credit Facility has an allocation of $940 million to the Company’s subsidiaries in the United States and an allocation of $60 million to Ryerson Holding’s Canadian subsidiary that is a borrower. Amounts outstanding under the Ryerson Ryerson We attempt to minimize interest rate risk exposure through the utilization of interest rate swaps, which are derivative financial instruments. In March 2017, we entered into an interest rate swap to fix interest on $150 million of our floating rate debt under the Ryerson Credit Facility at a rate of 1.658% through March 2020. The swap has reset dates and critical terms that match our existing debt and the anticipated critical terms of future debt. The weighted average interest rate on the outstanding borrowings under the Ryerson Credit Facility including the interest rate swap was 3.5 Borrowings under the Ryerson The Ryerson Ryerson Ryerson The Ryerson Ryerson Ryerson The lenders under the Ryerson Ryerson Net proceeds of short-term borrowings that are reflected in the Condensed Consolidated Statements of Cash Flows represent borrowings under the Ryerson 2022 Notes On May 24, 2016, JT Ryerson issued $650 million in aggregate principal amount of the 2022 Notes (the “2022 Notes”). The 2022 Notes bear interest at a rate of 11.00% per annum. The 2022 Notes are fully and unconditionally guaranteed on a senior secured basis by all of our existing and future domestic subsidiaries that are co-borrowers or that have guarantee obligations under the Ryerson Credit Facility. During 2018, a principal amount of $50.5 million of the 2022 Notes were repurchased for $52.2 million and retired. During the first three months of 2019, a principal amount of $11.6 million of the 2022 Notes were repurchased for $11.8 million and retired, resulting in the recognition of a $0.2 million loss within other income and (expense), net on the Condensed Consolidated Statement of Comprehensive Income. The 2022 Notes and the related guarantees are secured by a first-priority security interest in substantially all of JT Ryerson’s and each guarantor’s present and future assets located in the United States (other than receivables, inventory, cash, deposit accounts and related general intangibles, certain other assets, and proceeds thereof), subject to certain exceptions and customary permitted liens. The 2022 Notes and the related guarantees are also secured on a second-priority basis by a lien on the assets that secure JT Ryerson’s and the Company’s obligations under the Ryerson Credit Facility. The 2022 Notes will be redeemable, in whole or in part, at any time on or after May 15, 2019 at certain redemption prices. The redemption price for the 2022 Notes if redeemed during the twelve months beginning (i) May 15, 2019 is 105.50%, (ii) May 15, 2020 is 102.75%, and (iii) May 15, 2021 and thereafter is 100.00%. JT Ryerson may redeem some or all of the 2022 Notes before May 15, 2019 at a redemption price of 100.00% of the principal amount, plus accrued and unpaid interest, if any, to the redemption date, plus a “make-whole” premium. In addition, JT Ryerson may redeem up to 35% of the 2022 Notes before May 15, 2019 with respect to the 2022 Notes with the net cash proceeds from certain equity offerings at a price equal to 111.00%, with respect to the 2022 Notes, of the principal amount thereof, plus any accrued and unpaid interest, if any. JT Ryerson may be required to make an offer to purchase the 2022 Notes upon the sale of assets or upon a change of control. The 2022 Notes contain customary covenants that, among other things, limit, subject to certain exceptions, our ability, and the ability of our restricted subsidiaries, to incur additional indebtedness, pay dividends on our capital stock or repurchase our capital stock, make investments, sell assets, engage in acquisitions, mergers, or consolidations, or create liens or use assets as security in other transactions. Subject to certain exceptions, JT Ryerson may only pay dividends to Ryerson Holding to the extent of 50% of cumulative net income since the issuance of the 2022 Notes, once prior losses are offset. During 2018, a principal amount of $50.5 million of the 2022 Notes were repurchased for $52.2 million and retired. Foreign Debt At March 31, 2019, Ryerson China’s foreign borrowings were $18.7 million, which were owed to banks in Asia at a weighted average interest rate of 4.3% per annum and secured by inventory and property, plant, and equipment. At December 31, 2018, Ryerson China’s foreign borrowings were $19.5 million rate of 4.3% Availability under the foreign credit lines was $27 million and $26 million at March 31, 2019 and December 31, 2018. Letters of credit issued by our foreign subsidiaries were $4 million and $3 million at March 31, 2019 and December 31, 2018, respectively. |
Employee Benefits
Employee Benefits | 3 Months Ended |
Mar. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefits | NOTE 9: EMPLOYEE BENEFITS The following table summarizes the components of net periodic benefit (credit) cost for the three months ended March 31, 2019 and 2018 for the Ryerson pension plans and postretirement benefits other than pension: Three Months Ended March 31, Pension Benefits Other Benefits 2019 2018 2019 2018 (In millions) Components of net periodic benefit (credit) cost Service cost $ 1 $ — $ — $ — Interest cost 7 6 1 1 Expected return on assets (9 ) (10 ) — — Recognized actuarial (gain) loss 4 4 (2 ) (2 ) Amortization of prior service credit — — (1 ) (1 ) Net periodic benefit (credit) cost $ 3 $ — $ (2 ) $ (2 ) Components of net periodic benefit (credit) cost, excluding service cost, are included in Other income and (expense), net in our Condensed Consolidated Statement of Comprehensive Income. The Company has contributed $6 million to the pension plan fund through the three months ended March 31, 2019 and anticipates that it will have a minimum required pension contribution funding of approximately $20 million for the remaining nine months of 2019. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 10: COMMITMENTS AND CONTINGENCIES In October 2011, the United States Environmental Protection Agency (the “EPA”) named us as one of more than 100 businesses that may be a potentially responsible party for the Portland Harbor Superfund Site (the “PHS Site”). On January 6, 2017, the EPA issued an initial Record of Decision (“ROD”) regarding the site. The ROD includes a combination of dredging, capping, and enhanced natural recovery that would take approximately thirteen years to construct plus additional time for monitored natural recovery, at an estimated present value cost of $1.05 billion. In a change to its prior stance, at a meeting on December 4, 2018, the EPA announced that it expects potentially responsible parties to submit a plan during 2019 to start remediation of the river and harbor per the original ROD within the next two to three years. It also expects allocation of amounts among the parties to be determined in the same time frame. The EPA has stated that it is willing to consider de minimis and de micromis settlements, which JT Ryerson is trying to pursue; however, the EPA has not begun meeting with any parties, stating that it does not have sufficient information to determine if anyone meets the de minimis criteria and does not intend to begin those considerations until after the Remedial Design work is completed. The EPA has not yet allocated responsibility for the contamination among the potentially responsible parties, including JT Ryerson. We do not currently have sufficient information available to us to determine whether the ROD will be executed as currently stated, whether and to what extent JT Ryerson may be held responsible for any of the identified contamination, and how much (if any) of the final plan’s costs might ultimately be allocated to JT Ryerson. Therefore, management cannot predict the ultimate outcome of this matter or estimate a range of potential loss at this time. There are various other claims and pending actions against the Company. The amount of liability, if any, for those claims and actions at March 31, 2019 is not determinable but, in the opinion of management, such liability, if any, will not have a material adverse effect on the Company’s financial position, results of operations, or cash flows. We maintain liability insurance coverage to assist in protecting our assets from losses arising from or related to activities associated with business operations. |
Derivatives and Fair Value Meas
Derivatives and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Investments All Other Investments [Abstract] | |
Derivatives and Fair Value Measurements | NOTE 11: DERIVATIVES AND FAIR VALUE MEASUREMENTS Derivatives The Company is exposed to certain risks relating to its ongoing business operations. The primary risks managed by using derivative instruments are interest rate risk, foreign currency risk, and commodity price risk. Interest rate swaps are entered into to manage interest rate risk associated with the Company’s floating-rate borrowings. We use foreign currency exchange contracts to hedge variability in cash flows when a payment currency is different from our functional currency. From time to time, we may enter into fixed price sales contracts with our customers for certain of our inventory components. We may enter into metal commodity futures and options contracts to reduce volatility in the price of these metals. We may also enter into natural gas and diesel fuel price swaps to manage the price risk of forecasted purchases of natural gas and diesel fuel. We have a receive variable, pay fixed, interest rate swap to manage the exposure to variable interest rates of the Ryerson Credit Facility. In March 2017, we entered into a forward agreement for $150 million of “pay fixed” interest at 1.658%, “receive variable” interest to manage the risk of increasing variable interest rates. The interest rate reset dates and critical terms match the terms of our existing debt and anticipated critical terms of future debt under the Ryerson Credit Facility. The fair value of the interest rate swap as of March 31, 2019 was an asset of $1.0 million. The Company currently does not account for its commodity and foreign exchange derivative contracts as hedges but rather marks them to market with a corresponding offset to current earnings. The Company accounts for its interest rate swap as a cash flow hedge of floating-rate borrowings with changes in fair value being recorded in accumulated other comprehensive income. The Company regularly reviews the creditworthiness of its derivative counterparties and does not expect to incur a significant loss from the failure of any counterparties to perform under any agreements. The following table summarizes the location and fair value amount of our derivative instruments reported in our Condensed Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018: Asset Derivatives Liability Derivatives Balance Sheet Location March 31, 2019 December 31, 2018 Balance Sheet Location March 31, 2019 December 31, 2018 (In millions) Derivatives not designated as hedging instruments under ASC 815 Metal commodity contracts Prepaid expenses and other current assets $ 1.6 $ 1.6 Other accrued liabilities $ 3.6 $ 5.4 Crude oil contracts Prepaid expenses and other current assets 0.9 — Other accrued liabilities — — Foreign exchange contracts Prepaid expenses and other current assets — 0.2 Other accrued liabilities — — Derivatives designated as hedging instruments under ASC 815 Interest rate swaps Deferred charges and other assets 1.0 1.5 Other noncurrent liabilities — — Total derivatives $ 3.5 $ 3.3 $ 3.6 $ 5.4 The following table presents the volume of the Company’s activity in derivative instruments as of March 31, 2019 and December 31, 2018: Notional Amount Derivative Instruments At March 31, 2019 At December 31, 2018 Unit of Measurement Nickel swap contracts 377 1,541 Tons Hot roll coil swap contracts 45,780 36,365 Tons Aluminum swap contracts 30,369 42,419 Tons Iron ore swap contracts 270,000 - Tons Crude oil swap contracts 114,000 - Barrels Foreign currency exchange contracts 2.6 million 4.5 million U.S. dollars Interest rate swap 150 million 150 million U.S. dollars The following table summarizes the location and amount of gains and losses on derivatives not designated as hedging instruments reported in our Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2019 and 2018: Amount of Gain/(Loss) Recognized in Income on Derivatives Derivatives not designated as hedging instruments Location of Gain/(Loss) Recognized in Income Three Months Ended March 31, under ASC 815 on Derivatives 2019 2018 Metal commodity contracts Cost of materials sold $ 1.6 $ (0.4 ) Crude oil contracts Warehousing, delivery, selling, general, and administrative 0.9 - Foreign exchange contracts Other income and (expense), net (0.1 ) 0.2 Total $ 2.4 $ (0.2 ) The following table summarizes the location and amount of gains and losses on derivatives designated as hedging instruments reported in our Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2019 and 2018: Amount of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Income into Income Derivatives designated as hedging instruments Location of Gain/(Loss) Recognized in Income Three Months Ended March 31, under ASC 815 on Derivatives 2019 2018 (In millions) Interest rate swaps Interest and other expense on debt $ 0.3 $ — As of March 31, 2019, the portion of the interest rate swap fair value that would be reclassified into earnings during the next 12 months as interest income is approximately $1.0 million. Fair Value Measurements To increase consistency and comparability in fair value measurements, ASC 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three levels as follows: 1. Level 1 – quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access as of the reporting date. 2. Level 2 – inputs other than quoted prices included within Level 1 that are directly observable for the asset or liability or indirectly observable through corroboration with observable market data. 3. Level 3 – unobservable inputs, such as internally-developed pricing models for the asset or liability due to little or no market activity for the asset or liability. The following table presents assets and liabilities measured and recorded at fair value on our Condensed Consolidated Balance Sheet on a recurring basis and their level within the fair value hierarchy as of March 31, 2019: At March 31, 2019 Level 1 Level 2 Level 3 (In millions) Assets Derivatives: Derivatives not designated as hedging instruments under ASC 815: Metal commodity contracts $ — $ 1.6 $ — Crude oil contracts — 0.9 — Derivatives designated as hedging instruments under ASC 815: Interest rate swaps — 1.0 — Total derivatives $ — $ 3.5 $ — Liabilities Derivatives: Derivatives not designated as hedging instruments under ASC 815: Metal commodity contracts $ — $ 3.6 $ — The following table presents assets and liabilities measured and recorded at fair value on our Condensed Consolidated Balance Sheet on a recurring basis and their level within the fair value hierarchy as of December 31, 2018: At December 31, 2018 Level 1 Level 2 Level 3 (In millions) Assets Derivatives: Derivatives not designated as hedging instruments under ASC 815: Metal commodity contracts $ — $ 1.6 $ — Foreign exchange contracts — 0.2 — Derivatives designated as hedging instruments under ASC 815: Interest rate swaps — 1.5 — Total derivatives $ — $ 3.3 $ — Liabilities Derivatives: Derivatives not designated as hedging instruments under ASC 815: Metal commodity contracts $ — $ 5.4 $ — The fair value of each derivative contract is determined using Level 2 inputs and the market approach valuation technique, as described in ASC 820. The Company has various commodity derivatives to lock in nickel and zinc prices for varying time periods. The fair value of these derivatives is determined based on the spot price each individual contract was purchased at and compared with the one-month daily average actual spot price on the London Metals Exchange for nickel and zinc on the valuation date. The Company also has commodity derivatives to lock in hot roll coil, iron ore, and aluminum prices for varying time periods. The fair value of hot roll coil, crude oil, iron ore, and aluminum derivatives is determined based on the spot price each individual contract was purchased at and compared with the one-month daily average actual spot price on the Chicago Mercantile Exchange (hot roll coil and crude oil), the Singapore Exchange, and the London Metals Exchange, respectively, for the commodity on the valuation date. In addition, the Company has numerous foreign exchange contracts to hedge variability in cash flows when a payment currency is different from our functional currency. The Company defines the fair value of foreign exchange contracts as the amount of the difference between the contracted and current market value at the end of the period. The Company estimates the current market value of foreign exchange contracts by obtaining month-end market quotes of foreign exchange rates and forward rates for contracts with similar terms. The Company uses the exchange rates provided by Reuters. Each commodity and foreign exchange contract term varies in the number of months, but in general, contracts are between 3 to 12 months The carrying and estimated fair values of our financial instruments at March 31, 2019 and December 31, 2018 were as follows: At March 31, 2019 At December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value (In millions) Cash and cash equivalents $ 22.0 $ 22.0 $ 23.2 $ 23.2 Restricted cash 1.1 1.1 1.1 1.1 Receivables less provisions 590.4 590.4 521.0 521.0 Accounts payable 483.5 483.5 390.2 390.2 Long-term debt, including current portion 1,156.5 1,191.9 1,153.3 1,158.5 The estimated fair value of the Company’s cash and cash equivalents, receivables less provisions, and accounts payable approximate their carrying amounts due to the short-term nature of these financial instruments. The estimated fair value of the Company’s long-term debt and the current portions thereof is determined by using quoted market prices of Company debt securities (Level 2 inputs). |
Stockholders' Equity (Deficit),
Stockholders' Equity (Deficit), Accumulated Other Comprehensive Income (Loss) and Noncontrolling Interest | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity (Deficit), Accumulated Other Comprehensive Income (Loss) and Noncontrolling Interest | NOTE 12: STOCKHOLDERS’ EQUITY (DEFICIT), ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS), AND NONCONTROLLING INTEREST The following tables detail changes in these accounts for the three months ended March 31, 2019: Ryerson Holding Corporation Stockholders' Equity (Deficit) Accumulated Other Comprehensive Income (Loss) Common Stock Treasury Stock Capital in Excess of Par Value Retained Earnings Foreign Currency Translation Benefit Plan Liabilities Cash Flow Hedge- Interest Rate Swap Non-controlling Interest Total Equity Shares Dollars Shares Dollars Dollars Dollars Dollars Dollars Dollars Dollars Dollars (In millions, except shares in thousands) Balance at January 1, 2019 37,656 $ 0.4 213 $ (6.6 ) $ 381.0 $ 14.2 $ (52.8 ) $ (264.0 ) $ 1.0 $ 2.7 $ 75.9 Net income — — — — — 29.5 — — — 0.1 29.6 Foreign currency translation — — — — — — 2.9 — — 0.1 3.0 Changes in defined benefit pension and other post-retirement benefit plans, net of tax of $0.3 — — — — — — — 0.9 — — 0.9 Adoption of accounting principal ASC 842, net of tax of $1.1 — — — — — 3.0 — — — — 3.0 Stock-based compensation expense 10 — — — 0.8 — — — — — 0.8 Cash flow hedge - interest rate swap, net of tax of $0.1 — — — — — — — — (0.4 ) — (0.4 ) Balance at March 31, 2019 37,666 $ 0.4 213 $ (6.6 ) $ 381.8 $ 46.7 $ (49.9 ) $ (263.1 ) $ 0.6 $ 2.9 $ 112.8 The following tables detail changes in these accounts for the three months ended March 31, 2018: Ryerson Holding Corporation Stockholders' Equity (Deficit) Accumulated Other Comprehensive Income (Loss) Common Stock Treasury Stock Capital in Excess of Par Value Accumulated Deficit Foreign Currency Translation Benefit Plan Liabilities Unrealized Gain (Loss) on Equity Securities Cash Flow Hedge- Interest Rate Swap Non-controlling Interest Total Equity Shares Dollars Shares Dollars Dollars Dollars Dollars Dollars Dollars Dollars Dollars Dollars (In millions, except shares in thousands) Balance at January 1, 2018 37,421 $ 0.4 213 $ (6.6 ) $ 377.6 $ (95.1 ) $ (41.6 ) $ (246.3 ) $ 1.0 $ 0.6 $ 2.6 $ (7.4 ) Net income — — — — — 10.4 — — — — 0.2 10.6 Foreign currency translation — — — — — — (1.4 ) — — — — (1.4 ) Foreign currency loss on intra-entity transactions — — — — — — (1.3 ) — — — — (1.3 ) Changes in defined benefit pension and other post-retirement benefit plans, net of tax of $0.3 — — — — — — — 1.0 — — — 1.0 Adoption of accounting principal ASU 2016-01 — — — — — 1.0 — — (1.0 ) — — — Adoption of accounting principal ASC 606, net of tax of $0.7 — — — — — 2.3 — — — — — 2.3 Stock-based compensation expense — — — — 0.7 — — — — — — 0.7 Cash flow hedge - interest rate swap, net of tax of $0.5 — — — — — — — — — 0.7 — 0.7 Balance at March 31, 2018 37,421 $ 0.4 213 $ (6.6 ) $ 378.3 $ (81.4 ) $ (44.3 ) $ (245.3 ) $ — $ 1.3 $ 2.8 $ 5.2 The following table details changes in accumulated other comprehensive income (loss), net of tax, for the three months ended March 31, 2019: Changes in Accumulated Other Comprehensive Income (Loss) by Component, net of tax Foreign Currency Translation Benefit Plan Liabilities Cash Flow Hedge - Interest Rate Swap (In millions) Balance at January 1, 2019 $ (52.8 ) $ (264.0 ) $ 1.0 Other comprehensive income (loss) before reclassifications 2.9 — (0.2 ) Amounts reclassified from accumulated other comprehensive income into net income — 0.9 (0.2 ) Net current-period other comprehensive income (loss) 2.9 0.9 (0.4 ) Balance at March 31, 2019 $ (49.9 ) $ (263.1 ) $ 0.6 The following table details the reclassifications out of accumulated other comprehensive income (loss) for the three months ended March 31, 2019 and 2018: Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Amounts reclassified from Accumulated Other Comprehensive Income (Loss) Three Months Ended Affected line item in the Condensed Details about Accumulated Other March 31, 2019 March 31, 2018 Consolidated Statements of Comprehensive Income (Loss) Components (In millions) Comprehensive Income Amortization of defined benefit pension and other post- retirement benefit plan items Actuarial loss $ 1.9 $ 2.0 Warehousing, delivery, selling, general, and administrative Prior service credits (0.7 ) (0.7 ) Warehousing, delivery, selling, general, and administrative Total before tax 1.2 1.3 Tax benefit (0.3 ) (0.3 ) Net of tax $ 0.9 $ 1.0 Cash flow hedge - interest rate swap Realized swap interest loss $ (0.3 ) $ — Interest and other expense on debt Tax benefit (0.1 ) — Net of tax $ (0.2 ) $ — |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | NOTE 13: REVENUE RECOGNITION We are a leading metals service center that distributes and provides value-added processing of industrial metals with operations in the United States, Canada, Mexico, and China. We purchase large quantities of metal products from primary producers and sell these materials in smaller quantities to a wide variety of metals-consuming industries. More than 75% of the metals products sold are processed by us by burning, sawing, slitting, blanking, cutting to length, or other techniques. Disaggregated Revenue We have one operating and reportable segment, metals service centers. The Company derives substantially all of its sales from the distribution of metals. The following table shows the Company’s percentage of sales by major product line: Three Months Ended March 31, Product Line 2019 2018 Carbon Steel Flat 25 % 27 % Carbon Steel Plate 12 10 Carbon Steel Long 16 12 Stainless Steel Flat 15 17 Stainless Steel Plate 4 4 Stainless Steel Long 4 4 Aluminum Flat 15 16 Aluminum Plate 2 3 Aluminum Long 5 5 Other 2 2 Total 100 % 100 % A significant majority of the Company’s sales are attributable to its U.S. operations. The only operations attributed to foreign countries relate to the Company’s subsidiaries in Canada, China, and Mexico. The following table summarizes consolidated financial information of our operations by geographic location based on where sales originated: Three Months Ended March 31, Net Sales 2019 2018 United States $ 1,120.4 $ 835.3 Foreign countries 110.4 106.0 Total $ 1,230.8 $ 941.3 Revenue is recognized either at a point in time or over time based on if the contract has an enforceable right to payment and the type of product that is being sold to the customer with products that are determined to have no alternative use being recognized over time. The following table summarizes revenues by the type of item sold: Three Months Ended March 31, Timing of Revenue Recognition 2019 2018 Revenue on products with an alternative use 87 % 90 % Revenue on products with no alternative use 13 10 Total 100 % 100 % Contract Balances A receivable is recognized in the period in which an invoice is issued, which is generally when the product is delivered to the customer. Payment terms on invoiced amounts are typically 30 days from the invoice date. We do not have any contracts with significant financing components. Receivables, which are included in accounts receivables within the Condensed Consolidated Balance Sheet, from contracts with customers were $594.0 million and $523.5 million as of March 31, 2019 and December 31, 2018, respectively. Contract assets, which consist primarily of revenues recognized over time that have not yet been invoiced and estimates of the value of inventory that will be received in conjunction with product returns changes in the contract assets and the contract liabilities balances during the period are as follows: Contract Assets Contract Liabilities (In millions) Beginning Balance at January 1, 2019 $ 16.6 $ 10.0 Satisfied contract liability from beginning of the period — (1.7 ) Contract liability incurred during the period — 2.1 Net contract assets and liabilities added for products with no alternative during the period 2.5 0.1 Changes to reserves 3.2 — Ending Balance at March 31, 2019 $ 22.3 $ 10.5 The Company’s performance obligations are typically short-term in nature. As a result, the Company has elected the practical expedient that provides an exemption of the disclosure requirements regarding information about remaining performance obligations on contracts that have original expected durations of one year or less. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 14: INCOME TAXES For the three months ended March 31, 2019, the Company recorded income tax expense of In accordance with ASC 740, “ Income Taxes this determination, we analyze, among other things, our recent history of earnings, the nature and timing of reversing book-tax temporary differences, tax planning strategies, and future income. The Company maintains a valuation allowance on certain foreign and U.S. federal and state deferred tax assets until such time as in management’s judgment, considering all available positive and negative evidence, the Company determines that these deferred tax assets are more likely than not realizable. The valuation allowance is reviewed quarterly and will be maintained until sufficient positive evidence exists to support the reversal of some or all of the valuation allowance. The valuation allowance was $29.3 million at March 31, 2019 and December 31, 2018. The U.S. Tax Cuts and Jobs Act (the “Act”) subjects a U.S. shareholder to tax on global intangible low-taxed income (“GILTI”) earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income, states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. After considering the two options, the Company has elected to provide for the tax expense related to GILTI in the year the tax will occur. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | NOTE 15: EARNINGS PER SHARE Basic earnings per share attributable to Ryerson Holding’s common stock is determined based on earnings for the period divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share attributable to Ryerson Holding’s common stock considers the effect of potential common shares, unless inclusion of the potential common shares would have an antidilutive effect. The following table sets forth the calculation of basic and diluted earnings per share: Three Months Ended March 31, Basic and diluted earnings per share 2019 2018 (In millions, except share and per share data) Numerator: Net income attributable to Ryerson Holding Corporation $ 29.5 $ 10.4 Denominator: Weighted average shares outstanding 37,449,450 37,208,581 Dilutive effect of stock-based awards 391,013 329,979 Weighted average shares outstanding adjusted for dilutive securities 37,840,463 37,538,560 Earnings per share Basic $ 0.79 $ 0.28 Diluted $ 0.78 $ 0.28 |
Summary of Accounting and Finan
Summary of Accounting and Financial Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Impact of Recently Issued Accounting Standards—Adopted In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “ Leases ” codified in Accounting Standards Codification (“ASC”) 842, “ Leases ” (“ASC 842”). The guidance in ASU 2016- We adopted the standard effective January 1, 2019 using the alternative modified retrospective transition method, which allows for application of the guidance at the beginning of the period in which it is adopted, rather than at the beginning of the earliest comparative period presented. Adoption of the new standard resulted in the recording of operating lease assets and liabilities of $ 82.3 In February 2018, the FASB issued ASU 2018-02, “ Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. Impact of Recently Issued Accounting Standards—Not Yet Adopted In June 2016, the FASB issued ASU 2016-13, “ Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments. ” The amendment requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected, thus eliminating the probable initial recognition threshold and instead reflecting the current estimate of all expected credit losses. The amendment also requires that credit losses relating to available-for-sale debt securities be recorded through an allowance for credit losses rather than a write-down, thus enabling the ability to record reversals of credit losses in current period net income. The update is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted . In August 2018, the FASB issued ASU 2018-13, “ Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. In August 2018, the FASB issued ASU 2018-14, “ Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans. In August 2018, the FASB issued ASU 2018-15, “ Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. |
Cash, Cash Equivalents, and R_2
Cash, Cash Equivalents, and Restricted Cash (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Cash And Cash Equivalents [Abstract] | |
Reconciliation of Cash, Cash Equivalents, and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Condensed Consolidated Balance Sheets that sum to the total of the beginning and ending cash balances shown in the Condensed Consolidated Statements of Cash Flows: March 31, December 31, 2019 2018 (In millions) Cash and cash equivalents $ 22.0 $ 23.2 Restricted cash 1.1 1.1 Total cash, cash equivalents, and restricted cash $ 23.1 $ 24.3 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories, at stated LIFO value, were classified at March 31, 2019 and December 31, 2018 as follows: March 31, December 31, 2019 2018 (In millions) In process and finished products $ 876.9 $ 806.3 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Summary of Location and Amount of Lease Assets and Lease Liabilities | The following table summarizes the location and amount of lease assets and lease liabilities reported in our Condensed Consolidated Balance Sheet as of March 31, 2019: March 31, Leases Balance Sheet Location 2019 (In millions) Assets Operating lease assets Operating lease assets $ 79.9 Finance lease assets Property, plant, and equipment, net (a) 57.3 Total lease assets $ 137.2 Liabilities Current Operating Current portion of operating lease liabilities $ 17.4 Finance Other accrued liabilities 13.7 Noncurrent Operating Noncurrent operating lease liabilities 68.1 Finance Other noncurrent liabilities 25.9 Total lease liabilities $ 125.1 (a) Finance lease assets are recorded net of accumulated amortization of $16.3 million as of March 31, 2019. |
Summary of Location and Amount of Lease Expense | The following table summarizes the location and amount of lease expense reported in our Condensed Consolidated Statement of Comprehensive Income for the three months ended March 31, 2019: Three Months Ended March 31, Lease Expense Location of Lease Expense Recognized in Income 2019 (In millions) Operating lease expense Warehousing, delivery, selling, general, and administrative $ 5.6 Finance lease expense Amortization of lease assets Warehousing, delivery, selling, general, and administrative 1.6 Interest on lease liabilities Interest and other expense on debt 0.4 Variable lease expense Warehousing, delivery, selling, general, and administrative 0.7 Short-term lease expense Warehousing, delivery, selling, general, and administrative 0.5 Total lease expense $ 8.8 |
Schedule of Maturity Analysis of Lease Liabilities | The following table presents maturity analysis of lease liabilities at March 31, 2019: Maturity of Lease Liabilities Operating Leases (a) Finance Leases Total (In millions) 2019 $ 15.4 $ 11.7 $ 27.1 2020 18.9 13.1 32.0 2021 16.7 8.3 25.0 2022 13.3 5.0 18.3 2023 10.4 2.7 13.1 After 2023 20.2 2.2 22.4 Total lease payments 94.9 43.0 137.9 Less: Interest (b) (9.4 ) (3.4 ) (12.8 ) Present value of lease liabilities (c) $ 85.5 $ 39.6 $ 125.1 (a) There were no operating leases with options to extend lease terms that are reasonably certain of being exercised and the operating lease payments exclude $7.9 million of legally binding minimum lease payments for leases signed but not yet commenced. (b) Calculated using the discount rate for each lease. (c) Includes the current portion of $17.4 million for operating leases and $13.7 million for finance leases. |
Schedule of Weighted-Average Remaining Lease Term and Discount Rate for Operating and Finance Leases | The following table shows the weighted-average remaining lease term and discount rate for operating and finance leases, respectively, at March 31, 2019: March 31, Lease Term and Discount Rate 2019 Weighted-average remaining lease term (years) Operating leases 5.6 Finance leases 3.2 Weighted-average discount rate Operating leases 3.8 % Finance leases 4.8 % |
Schedule of Other Information Reported in Condensed Consolidated Statement of Cash Flows | Other information reported in our Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2019 is summarized below: Three Months Ended March 31, Other Information 2019 (In millions) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 5.1 Operating cash flows from finance leases 0.4 Financing cash flows from finance leases 3.0 Assets obtained in exchange for lease obligations: Adoption of accounting principal ASC 842 82.3 Operating leases 2.6 Finance leases 0.1 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. At July 2, 2018 (In millions) Cash and cash equivalents $ 10.0 Receivables, less provisions 80.0 Inventories 179.8 Prepaid expenses and other current assets 1.7 Property, plant, and equipment 66.5 Other intangible assets 16.1 Total identifiable assets acquired 354.1 Accounts payable (49.7 ) Salaries, wages, and commissions (4.9 ) Other accrued liabilities (6.5 ) Deferred income taxes (27.7 ) Deferred employee benefits (31.8 ) Total liabilities assumed (120.6 ) Net identifiable assets acquired 233.5 Bargain purchase gain (70.0 ) Total purchase price $ 163.5 |
Summary of Unaudited Pro forma Information Presents Consolidated Results of Operation | The following unaudited pro forma information presents consolidated results of operations for the three months ended March 31, 2019 and 2018 as if the acquisition of CS&W on July 2, 2018 had occurred on January 1, 2018: Pro Forma Three Months Ended March 31, 2019 2018 (In millions) Net sales $ 1,230.8 $ 1,112.4 Net income attributable to Ryerson Holding Corporation 29.5 6.7 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt consisted of the following at March 31, 2019 and December 31, 2018: March 31, December 31, 2019 2018 (In millions) Ryerson Credit Facility $ 558.3 $ 535.9 11.00% Senior Secured Notes due 2022 587.9 599.5 Foreign debt 18.7 19.5 Other debt 0.6 8.3 Unamortized debt issuance costs and discounts (9.0 ) (9.9 ) Total debt 1,156.5 1,153.3 Less: Short-term foreign debt 18.7 19.5 Less: Other short-term debt — 7.8 Total long-term debt $ 1,137.8 $ 1,126.0 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit (Credit) Cost | The following table summarizes the components of net periodic benefit (credit) cost for the three months ended March 31, 2019 and 2018 for the Ryerson pension plans and postretirement benefits other than pension: Three Months Ended March 31, Pension Benefits Other Benefits 2019 2018 2019 2018 (In millions) Components of net periodic benefit (credit) cost Service cost $ 1 $ — $ — $ — Interest cost 7 6 1 1 Expected return on assets (9 ) (10 ) — — Recognized actuarial (gain) loss 4 4 (2 ) (2 ) Amortization of prior service credit — — (1 ) (1 ) Net periodic benefit (credit) cost $ 3 $ — $ (2 ) $ (2 ) |
Derivatives and Fair Value Me_2
Derivatives and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments All Other Investments [Abstract] | |
Location and Fair Value Amount of Derivative Instruments | The following table summarizes the location and fair value amount of our derivative instruments reported in our Condensed Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018: Asset Derivatives Liability Derivatives Balance Sheet Location March 31, 2019 December 31, 2018 Balance Sheet Location March 31, 2019 December 31, 2018 (In millions) Derivatives not designated as hedging instruments under ASC 815 Metal commodity contracts Prepaid expenses and other current assets $ 1.6 $ 1.6 Other accrued liabilities $ 3.6 $ 5.4 Crude oil contracts Prepaid expenses and other current assets 0.9 — Other accrued liabilities — — Foreign exchange contracts Prepaid expenses and other current assets — 0.2 Other accrued liabilities — — Derivatives designated as hedging instruments under ASC 815 Interest rate swaps Deferred charges and other assets 1.0 1.5 Other noncurrent liabilities — — Total derivatives $ 3.5 $ 3.3 $ 3.6 $ 5.4 |
Volume of Company 's Activity in Derivative Instruments | The following table presents the volume of the Company’s activity in derivative instruments as of March 31, 2019 and December 31, 2018: Notional Amount Derivative Instruments At March 31, 2019 At December 31, 2018 Unit of Measurement Nickel swap contracts 377 1,541 Tons Hot roll coil swap contracts 45,780 36,365 Tons Aluminum swap contracts 30,369 42,419 Tons Iron ore swap contracts 270,000 - Tons Crude oil swap contracts 114,000 - Barrels Foreign currency exchange contracts 2.6 million 4.5 million U.S. dollars Interest rate swap 150 million 150 million U.S. dollars |
Location and Amount of Gains and Losses on Derivatives Not Designated as Hedging Instruments Reported in Condensed Consolidated Statements of Comprehensive Income | The following table summarizes the location and amount of gains and losses on derivatives not designated as hedging instruments reported in our Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2019 and 2018: Amount of Gain/(Loss) Recognized in Income on Derivatives Derivatives not designated as hedging instruments Location of Gain/(Loss) Recognized in Income Three Months Ended March 31, under ASC 815 on Derivatives 2019 2018 Metal commodity contracts Cost of materials sold $ 1.6 $ (0.4 ) Crude oil contracts Warehousing, delivery, selling, general, and administrative 0.9 - Foreign exchange contracts Other income and (expense), net (0.1 ) 0.2 Total $ 2.4 $ (0.2 ) |
Location and Amount of Gains and Losses on Derivatives Designated as Hedging Instruments Reported in Condensed Consolidated Statements of Comprehensive Income | The following table summarizes the location and amount of gains and losses on derivatives designated as hedging instruments reported in our Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2019 and 2018: Amount of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Income into Income Derivatives designated as hedging instruments Location of Gain/(Loss) Recognized in Income Three Months Ended March 31, under ASC 815 on Derivatives 2019 2018 (In millions) Interest rate swaps Interest and other expense on debt $ 0.3 $ — |
Assets and Liabilities Measured and Recorded at Fair Value | The following table presents assets and liabilities measured and recorded at fair value on our Condensed Consolidated Balance Sheet on a recurring basis and their level within the fair value hierarchy as of March 31, 2019: At March 31, 2019 Level 1 Level 2 Level 3 (In millions) Assets Derivatives: Derivatives not designated as hedging instruments under ASC 815: Metal commodity contracts $ — $ 1.6 $ — Crude oil contracts — 0.9 — Derivatives designated as hedging instruments under ASC 815: Interest rate swaps — 1.0 — Total derivatives $ — $ 3.5 $ — Liabilities Derivatives: Derivatives not designated as hedging instruments under ASC 815: Metal commodity contracts $ — $ 3.6 $ — The following table presents assets and liabilities measured and recorded at fair value on our Condensed Consolidated Balance Sheet on a recurring basis and their level within the fair value hierarchy as of December 31, 2018: At December 31, 2018 Level 1 Level 2 Level 3 (In millions) Assets Derivatives: Derivatives not designated as hedging instruments under ASC 815: Metal commodity contracts $ — $ 1.6 $ — Foreign exchange contracts — 0.2 — Derivatives designated as hedging instruments under ASC 815: Interest rate swaps — 1.5 — Total derivatives $ — $ 3.3 $ — Liabilities Derivatives: Derivatives not designated as hedging instruments under ASC 815: Metal commodity contracts $ — $ 5.4 $ — |
Carrying and Estimated Fair Values of Financial Instruments | The carrying and estimated fair values of our financial instruments at March 31, 2019 and December 31, 2018 were as follows: At March 31, 2019 At December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value (In millions) Cash and cash equivalents $ 22.0 $ 22.0 $ 23.2 $ 23.2 Restricted cash 1.1 1.1 1.1 1.1 Receivables less provisions 590.4 590.4 521.0 521.0 Accounts payable 483.5 483.5 390.2 390.2 Long-term debt, including current portion 1,156.5 1,191.9 1,153.3 1,158.5 |
Stockholders' Equity (Deficit_2
Stockholders' Equity (Deficit), Accumulated Other Comprehensive Income (Loss) and Noncontrolling Interest (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Change in Stockholders' Equity (Deficit), Accumulated Other Comprehensive Income (Loss) and Noncontrolling Interest | The following tables detail changes in these accounts for the three months ended March 31, 2019: Ryerson Holding Corporation Stockholders' Equity (Deficit) Accumulated Other Comprehensive Income (Loss) Common Stock Treasury Stock Capital in Excess of Par Value Retained Earnings Foreign Currency Translation Benefit Plan Liabilities Cash Flow Hedge- Interest Rate Swap Non-controlling Interest Total Equity Shares Dollars Shares Dollars Dollars Dollars Dollars Dollars Dollars Dollars Dollars (In millions, except shares in thousands) Balance at January 1, 2019 37,656 $ 0.4 213 $ (6.6 ) $ 381.0 $ 14.2 $ (52.8 ) $ (264.0 ) $ 1.0 $ 2.7 $ 75.9 Net income — — — — — 29.5 — — — 0.1 29.6 Foreign currency translation — — — — — — 2.9 — — 0.1 3.0 Changes in defined benefit pension and other post-retirement benefit plans, net of tax of $0.3 — — — — — — — 0.9 — — 0.9 Adoption of accounting principal ASC 842, net of tax of $1.1 — — — — — 3.0 — — — — 3.0 Stock-based compensation expense 10 — — — 0.8 — — — — — 0.8 Cash flow hedge - interest rate swap, net of tax of $0.1 — — — — — — — — (0.4 ) — (0.4 ) Balance at March 31, 2019 37,666 $ 0.4 213 $ (6.6 ) $ 381.8 $ 46.7 $ (49.9 ) $ (263.1 ) $ 0.6 $ 2.9 $ 112.8 The following tables detail changes in these accounts for the three months ended March 31, 2018: Ryerson Holding Corporation Stockholders' Equity (Deficit) Accumulated Other Comprehensive Income (Loss) Common Stock Treasury Stock Capital in Excess of Par Value Accumulated Deficit Foreign Currency Translation Benefit Plan Liabilities Unrealized Gain (Loss) on Equity Securities Cash Flow Hedge- Interest Rate Swap Non-controlling Interest Total Equity Shares Dollars Shares Dollars Dollars Dollars Dollars Dollars Dollars Dollars Dollars Dollars (In millions, except shares in thousands) Balance at January 1, 2018 37,421 $ 0.4 213 $ (6.6 ) $ 377.6 $ (95.1 ) $ (41.6 ) $ (246.3 ) $ 1.0 $ 0.6 $ 2.6 $ (7.4 ) Net income — — — — — 10.4 — — — — 0.2 10.6 Foreign currency translation — — — — — — (1.4 ) — — — — (1.4 ) Foreign currency loss on intra-entity transactions — — — — — — (1.3 ) — — — — (1.3 ) Changes in defined benefit pension and other post-retirement benefit plans, net of tax of $0.3 — — — — — — — 1.0 — — — 1.0 Adoption of accounting principal ASU 2016-01 — — — — — 1.0 — — (1.0 ) — — — Adoption of accounting principal ASC 606, net of tax of $0.7 — — — — — 2.3 — — — — — 2.3 Stock-based compensation expense — — — — 0.7 — — — — — — 0.7 Cash flow hedge - interest rate swap, net of tax of $0.5 — — — — — — — — — 0.7 — 0.7 Balance at March 31, 2018 37,421 $ 0.4 213 $ (6.6 ) $ 378.3 $ (81.4 ) $ (44.3 ) $ (245.3 ) $ — $ 1.3 $ 2.8 $ 5.2 |
Changes in Accumulated Other Comprehensive Income/(Loss) Net of Tax by Component | The following table details changes in accumulated other comprehensive income (loss), net of tax, for the three months ended March 31, 2019: Changes in Accumulated Other Comprehensive Income (Loss) by Component, net of tax Foreign Currency Translation Benefit Plan Liabilities Cash Flow Hedge - Interest Rate Swap (In millions) Balance at January 1, 2019 $ (52.8 ) $ (264.0 ) $ 1.0 Other comprehensive income (loss) before reclassifications 2.9 — (0.2 ) Amounts reclassified from accumulated other comprehensive income into net income — 0.9 (0.2 ) Net current-period other comprehensive income (loss) 2.9 0.9 (0.4 ) Balance at March 31, 2019 $ (49.9 ) $ (263.1 ) $ 0.6 |
Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The following table details the reclassifications out of accumulated other comprehensive income (loss) for the three months ended March 31, 2019 and 2018: Reclassifications Out of Accumulated Other Comprehensive Income (Loss) Amounts reclassified from Accumulated Other Comprehensive Income (Loss) Three Months Ended Affected line item in the Condensed Details about Accumulated Other March 31, 2019 March 31, 2018 Consolidated Statements of Comprehensive Income (Loss) Components (In millions) Comprehensive Income Amortization of defined benefit pension and other post- retirement benefit plan items Actuarial loss $ 1.9 $ 2.0 Warehousing, delivery, selling, general, and administrative Prior service credits (0.7 ) (0.7 ) Warehousing, delivery, selling, general, and administrative Total before tax 1.2 1.3 Tax benefit (0.3 ) (0.3 ) Net of tax $ 0.9 $ 1.0 Cash flow hedge - interest rate swap Realized swap interest loss $ (0.3 ) $ — Interest and other expense on debt Tax benefit (0.1 ) — Net of tax $ (0.2 ) $ — |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue Recognition [Abstract] | |
Summary of Disaggregated Revenue | The Company derives substantially all of its sales from the distribution of metals. The following table shows the Company’s percentage of sales by major product line: Three Months Ended March 31, Product Line 2019 2018 Carbon Steel Flat 25 % 27 % Carbon Steel Plate 12 10 Carbon Steel Long 16 12 Stainless Steel Flat 15 17 Stainless Steel Plate 4 4 Stainless Steel Long 4 4 Aluminum Flat 15 16 Aluminum Plate 2 3 Aluminum Long 5 5 Other 2 2 Total 100 % 100 % A significant majority of the Company’s sales are attributable to its U.S. operations. The only operations attributed to foreign countries relate to the Company’s subsidiaries in Canada, China, and Mexico. The following table summarizes consolidated financial information of our operations by geographic location based on where sales originated: Three Months Ended March 31, Net Sales 2019 2018 United States $ 1,120.4 $ 835.3 Foreign countries 110.4 106.0 Total $ 1,230.8 $ 941.3 Revenue is recognized either at a point in time or over time based on if the contract has an enforceable right to payment and the type of product that is being sold to the customer with products that are determined to have no alternative use being recognized over time. The following table summarizes revenues by the type of item sold: Three Months Ended March 31, Timing of Revenue Recognition 2019 2018 Revenue on products with an alternative use 87 % 90 % Revenue on products with no alternative use 13 10 Total 100 % 100 % |
Summary of Significant Changes in Contract Assets and Contract Liabilities Balances | Significant changes in the contract assets and the contract liabilities balances during the period are as follows: Contract Assets Contract Liabilities (In millions) Beginning Balance at January 1, 2019 $ 16.6 $ 10.0 Satisfied contract liability from beginning of the period — (1.7 ) Contract liability incurred during the period — 2.1 Net contract assets and liabilities added for products with no alternative during the period 2.5 0.1 Changes to reserves 3.2 — Ending Balance at March 31, 2019 $ 22.3 $ 10.5 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Calculation of Basic and Diluted Earnings Per Share | The following table sets forth the calculation of basic and diluted earnings per share: Three Months Ended March 31, Basic and diluted earnings per share 2019 2018 (In millions, except share and per share data) Numerator: Net income attributable to Ryerson Holding Corporation $ 29.5 $ 10.4 Denominator: Weighted average shares outstanding 37,449,450 37,208,581 Dilutive effect of stock-based awards 391,013 329,979 Weighted average shares outstanding adjusted for dilutive securities 37,840,463 37,538,560 Earnings per share Basic $ 0.79 $ 0.28 Diluted $ 0.78 $ 0.28 |
Financial Statements - Addition
Financial Statements - Additional Information (Detail) | Mar. 31, 2019shares |
Accounting Policies [Abstract] | |
Parent company shares owned by affiliates | 21,037,500 |
Parent company percentage owned by affiliates | 56.00% |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Recent Accounting Pronouncements [Line Items] | ||||
Operating lease assets | $ 79.9 | |||
Operating lease liabilities | [1],[2] | 85.5 | ||
Retained earnings | $ 46.7 | $ 14.2 | ||
ASU 2016-02 [Member] | ||||
Recent Accounting Pronouncements [Line Items] | ||||
Operating lease assets | $ 82.3 | |||
Operating lease liabilities | 87.6 | |||
Retained earnings | $ 3 | |||
[1] | Includes the current portion of $17.4 million for operating leases and $13.7 million for finance leases. | |||
[2] | There were no operating leases with options to extend lease terms that are reasonably certain of being exercised and the operating lease payments exclude $7.9 million of legally binding minimum lease payments for leases signed but not yet commenced. |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Cash And Cash Equivalents [Abstract] | ||
Cash and cash equivalents | $ 22 | $ 23.2 |
Restricted cash | 1.1 | 1.1 |
Total cash, cash equivalents, and restricted cash | $ 23.1 | $ 24.3 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
In process and finished products | $ 876.9 | $ 806.3 |
Inventories - Additional Inform
Inventories - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Amount by which inventory stated at last-in first-out (LIFO) is less than (in excess of) inventory stated at current cost | $ (2) | $ 18 |
Inventories accounted under the LIFO method | 91.00% | 91.00% |
Consignment inventory | $ 9.1 | $ 9.3 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Jun. 28, 2018 | |
Lessee Lease Description [Line Items] | ||
Real estate leases option to renew description | Many of the real estate leases include one or more options to renew, with renewal terms that can extend the lease term from one to 5 years or more. To determine the expected lease term, we include any noncancelable period within the lease agreement as well as any period covered by an option to extend the lease if we are reasonably certain to exercise the option. The equipment leases do not typically include options for renewal but do include options for purchase at the end of the lease. We determine the likelihood of exercising the option for purchase by assessing the option price versus the estimated fair value at the end of the lease term to determine if the option price is low enough that we are reasonably certain to exercise it. The depreciable life of finance lease assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. | |
Real estate leases, Existence of option to extend [true false] | true | |
Ryerson Credit Facility [Member] | ||
Lessee Lease Description [Line Items] | ||
Revolving credit facility maximum borrowing capacity | $ 1,000,000,000 | |
Maximum [Member] | ||
Lessee Lease Description [Line Items] | ||
Noncancelable operating leases expire period | 2028 | |
Finance leases expire period | 2024 | |
Real estate leases option to extend lease term | 5 years | |
Minimum [Member] | ||
Lessee Lease Description [Line Items] | ||
Real estate leases option to extend lease term | 1 year |
Leases - Summary of Location an
Leases - Summary of Location and Amount of Lease Assets and Lease Liabilities (Detail) $ in Millions | Mar. 31, 2019USD ($) | |
Assets | ||
Operating lease assets | $ 79.9 | |
Finance lease assets | $ 57.3 | |
Finance lease, Right-of-use asset, Statement of financial position [Extensible List] | us-gaap:PropertyPlantAndEquipmentNet | [1] |
Total lease assets | $ 137.2 | |
Liabilities | ||
Operating lease liabilities, current | 17.4 | |
Finance lease liabilities, current | $ 13.7 | |
Finance lease, Liability, Current, Statement of financial position [Extensible List] | us-gaap:OtherAccruedLiabilitiesCurrent | |
Operating lease liabilities, noncurrent | $ 68.1 | |
Finance lease liabilities, noncurrent | $ 25.9 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | |
Total lease liabilities | $ 125.1 | [2] |
[1] | Finance lease assets are recorded net of accumulated amortization of $16.3 million as of March 31, 2019. | |
[2] | Includes the current portion of $17.4 million for operating leases and $13.7 million for finance leases. |
Leases - Summary of Location _2
Leases - Summary of Location and Amount of Lease Assets and Lease Liabilities (Parenthetical) (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Lessee Lease Description [Line Items] | ||
Accumulated amortization | $ 358.7 | $ 349.4 |
Finance Lease [Member] | ||
Lessee Lease Description [Line Items] | ||
Accumulated amortization | $ 16.3 |
Leases - Summary of Location _3
Leases - Summary of Location and Amount of Lease Expense (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Finance lease expense | |
Total lease expense | $ 8.8 |
Warehousing, Delivery, Selling, General, and Administrative [Member] | |
Lessee Lease Description [Line Items] | |
Operating lease expense | 5.6 |
Finance lease expense | |
Amortization of lease assets | 1.6 |
Variable lease expense | 0.7 |
Short-term lease expense | 0.5 |
Interest and Other Expense on Debt [Member] | |
Finance lease expense | |
Interest on lease liabilities | $ 0.4 |
Leases - Schedule of Maturity A
Leases - Schedule of Maturity Analysis of Lease Liabilities (Detail) $ in Millions | Mar. 31, 2019USD ($) | |
Operating Leases | ||
2019 | $ 15.4 | [1] |
2020 | 18.9 | [1] |
2021 | 16.7 | [1] |
2022 | 13.3 | [1] |
2023 | 10.4 | [1] |
After 2023 | 20.2 | [1] |
Total lease payments | 94.9 | [1] |
Less: Interest | (9.4) | [1],[2] |
Present value of lease liabilities | 85.5 | [1],[3] |
Finance Leases | ||
2019 | 11.7 | |
2020 | 13.1 | |
2021 | 8.3 | |
2022 | 5 | |
2023 | 2.7 | |
After 2023 | 2.2 | |
Total lease payments | 43 | |
Less: Interest | (3.4) | [2] |
Present value of lease liabilities | 39.6 | [3] |
Total | ||
2019 | 27.1 | |
2020 | 32 | |
2021 | 25 | |
2022 | 18.3 | |
2023 | 13.1 | |
After 2023 | 22.4 | |
Total lease payments | 137.9 | |
Less: Interest | (12.8) | [2] |
Present value of lease liabilities | $ 125.1 | [3] |
[1] | There were no operating leases with options to extend lease terms that are reasonably certain of being exercised and the operating lease payments exclude $7.9 million of legally binding minimum lease payments for leases signed but not yet commenced. | |
[2] | Calculated using the discount rate for each lease. | |
[3] | Includes the current portion of $17.4 million for operating leases and $13.7 million for finance leases. |
Leases - Schedule of Maturity_2
Leases - Schedule of Maturity Analysis of Lease Liabilities (Parenthetical) (Detail) | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
Operating leases with options to extend lease terms that are reasonably certain of being exercised | $ 0 |
Legally binding minimum lease payments for leases signed but not yet commenced | 7,900,000 |
Operating leases, current portion | 17,400,000 |
Finance leases, current portion | $ 13,700,000 |
Leases - Schedule of Weighted-A
Leases - Schedule of Weighted-Average Remaining Lease Term and Discount Rate for Operating and Finance Leases (Detail) | Mar. 31, 2019 |
Leases [Abstract] | |
Operating leases, Weighted-average remaining lease term | 5 years 7 months 6 days |
Finance leases, Weighted-average remaining lease term | 3 years 2 months 12 days |
Operating leases, Weighted-average discount rate | 3.80% |
Finance leases, Weighted-average discount rate | 4.80% |
Leases - Schedule of Other Info
Leases - Schedule of Other Information Reported in Condensed Consolidated Statement of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ 5.1 | |
Operating cash flows from finance leases | 0.4 | |
Financing cash flows from finance leases | 3 | $ 3.1 |
Assets obtained in exchange for lease obligations: | ||
Adoption of accounting principal ASC 842 | 82.3 | |
Operating leases | 2.6 | |
Finance leases | 0.1 | $ 1.9 |
ASU 2016-02 [Member] | ||
Assets obtained in exchange for lease obligations: | ||
Adoption of accounting principal ASC 842 | $ 82.3 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 120,300,000 | $ 120,300,000 |
Impairment charge | 0 | |
Goodwill recognized from business acquisitions | $ 0 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - USD ($) $ in Millions | Jul. 02, 2018 | Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||||
Revenue | $ 1,230.8 | $ 941.3 | ||
Net income | $ 29.5 | $ 10.4 | ||
Central Steel & Wire Company [Member] | ||||
Business Acquisition [Line Items] | ||||
Effective date of acquisition | Jul. 2, 2018 | |||
Description of business acquisition | On July 2, 2018 (“the acquisition date”) JT Ryerson purchased Central Steel & Wire Company (“CS&W”). CS&W is a leading metal service center with locations across the Central and Eastern United States offering a wide selection of products and capabilities, with a commercial portfolio centered on bar, tube, plate, and steel products. | |||
Business combination, fair value of consideration | $ 163.5 | |||
Business combination, fair value of accounts receivables acquired | 80 | |||
Business combination, accounts receivables acquired, gross | 81.8 | |||
Business combination, accounts receivables, expected uncollectible | 1.8 | |||
Bargain purchase gain | 70 | |||
Business combination, acquisition related fees | $ 1.6 | |||
Revenue | $ 172.2 | |||
Net income | $ 4.4 | |||
Central Steel & Wire Company [Member] | Other Income and (Expense), Net [Member] | ||||
Business Acquisition [Line Items] | ||||
Bargain purchase gain | $ 70 | |||
Central Steel & Wire Company [Member] | Trademark [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangibles assets recognized from business acquisitions | $ 16.1 | |||
Business combination, useful life of intangible assets acquired | 10 years | |||
Fanello Industries [Member] | ||||
Business Acquisition [Line Items] | ||||
Effective date of acquisition | Apr. 2, 2018 | |||
Description of business acquisition | On April 2, 2018, Ryerson Holding acquired Fanello Industries, LLC (“Fanello”), a privately owned metal service company located in Lavonia, Georgia. |
Acquisitions - Summary of Estim
Acquisitions - Summary of Estimated Fair Values of Assets Acquired and Liabilities Assumed (Detail) - Central Steel & Wire Company [Member] $ in Millions | Jul. 02, 2018USD ($) |
Business Acquisition [Line Items] | |
Cash and cash equivalents | $ 10 |
Receivables, less provisions | 80 |
Inventories | 179.8 |
Prepaid expenses and other current assets | 1.7 |
Property, plant, and equipment | 66.5 |
Other intangible assets | 16.1 |
Total identifiable assets acquired | 354.1 |
Accounts payable | (49.7) |
Salaries, wages, and commissions | (4.9) |
Other accrued liabilities | (6.5) |
Deferred income taxes | (27.7) |
Deferred employee benefits | (31.8) |
Total liabilities assumed | (120.6) |
Net identifiable assets acquired | 233.5 |
Bargain purchase gain | (70) |
Total purchase price | $ 163.5 |
Acquisitions - Summary of Unaud
Acquisitions - Summary of Unaudited Pro Forma Information Presents Consolidated Results of Operation (Detail) - Central Steel & Wire Company [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Business Acquisition [Line Items] | ||
Net sales | $ 1,230.8 | $ 1,112.4 |
Net income attributable to Ryerson Holding Corporation | $ 29.5 | $ 6.7 |
Long-Term Debt - Long-Term Debt
Long-Term Debt - Long-Term Debt (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Foreign debt | $ 18.7 | $ 19.5 |
Other debt | 0.6 | 8.3 |
Unamortized debt issuance costs and discounts | (9) | (9.9) |
Total debt | 1,156.5 | 1,153.3 |
Less: Other short-term debt | 7.8 | |
Total long-term debt | 1,137.8 | 1,126 |
2022 Notes [Member] | ||
Debt Instrument [Line Items] | ||
11.00% Senior Secured Notes due 2022 | 587.9 | 599.5 |
Ryerson Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Ryerson Credit Facility | $ 558.3 | $ 535.9 |
Long-Term Debt - Ryerson Credit
Long-Term Debt - Ryerson Credit Facility - Additional Information (Detail) - USD ($) | Nov. 16, 2016 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 28, 2018 | Mar. 31, 2017 |
Ryerson Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility maximum borrowing capacity | $ 1,000,000,000 | ||||
Credit facility maturity date | Nov. 16, 2021 | ||||
Reduction in interest rate on outstanding borrowing | 0.25% | ||||
Reduction in commitment fees on amounts not borrowed | 0.025% | ||||
Outstanding borrowings | $ 558,300,000 | $ 535,900,000 | |||
Letters of credit | 12,000,000 | 12,000,000 | |||
Available credit facility | $ 411,000,000 | $ 392,000,000 | |||
Line of credit facility, description of collateral | Total credit availability is limited by the amount of eligible accounts receivable, inventory, and qualified cash pledged as collateral under the agreement insofar as Ryerson is subject to a borrowing base comprised of the aggregate of these three amounts, less applicable reserves. Eligible accounts receivable, at any date of determination, is comprised of the aggregate value of all accounts directly created by a borrower (and in the case of Canadian accounts, the Canadian borrower) in the ordinary course of business arising out of the sale of goods or the rendering of services, each of which has been invoiced, with such receivables adjusted to exclude various ineligible accounts, including, among other things, those to which a borrower (or guarantor, as applicable) does not have sole and absolute title and accounts arising out of a sale to an employee, officer, director, or affiliate of a borrower (or guarantor, as applicable). Eligible inventory, at any date of determination, is comprised of the net orderly liquidation value of all inventory owned by a borrower (and in the case of Canadian accounts, the Canadian borrower). Qualified cash consists of cash in an eligible deposit account that is subject to customary restrictions and liens in favor of the lenders. | ||||
Default bear interest rate | 2.00% | ||||
Commitment fees on amounts not borrowed | 0.23% | ||||
Ryerson Credit Facility [Member] | Interest Rate Swap [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate swap agreement date | Mar. 31, 2017 | ||||
Hedged debt amount | $ 150,000,000 | ||||
Derivative fixed interest rate | 1.658% | ||||
Derivative maturity period | 2020-03 | ||||
Weighted average interest rate | 3.50% | 3.50% | |||
Ryerson Credit Facility [Member] | Federal Funds Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage of spread over amount available to be borrowed | 0.50% | ||||
Ryerson Credit Facility [Member] | Prime Rate and One Month LIBOR Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage of spread over amount available to be borrowed | 1.00% | ||||
Ryerson Credit Facility [Member] | 30 Day LIBOR Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage of spread over amount available to be borrowed | 1.00% | ||||
Ryerson Credit Facility [Member] | One Month Canadian Bankers Acceptance Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage of spread over amount available to be borrowed | 1.00% | ||||
Ryerson Credit Facility [Member] | US Subsidiaries [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility maximum borrowing capacity | $ 940,000,000 | ||||
Ryerson Credit Facility [Member] | Canadian Subsidiaries [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility maximum borrowing capacity | $ 60,000,000 | ||||
Ryerson Credit Facility [Member] | Canadian Subsidiaries [Member] | Federal Funds Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage of spread over amount available to be borrowed | 0.50% | ||||
Ryerson Credit Facility [Member] | Minimum [Member] | Base Rate and Canadian Prime Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage of spread over amount available to be borrowed | 0.25% | ||||
Ryerson Credit Facility [Member] | Minimum [Member] | LIBOR and Banker's Acceptance Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage of spread over amount available to be borrowed | 1.25% | ||||
Ryerson Credit Facility [Member] | Maximum [Member] | Base Rate and Canadian Prime Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage of spread over amount available to be borrowed | 0.50% | ||||
Ryerson Credit Facility [Member] | Maximum [Member] | LIBOR and Banker's Acceptance Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage of spread over amount available to be borrowed | 1.50% | ||||
Old Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility maximum borrowing capacity | $ 1,000,000,000 | ||||
Amended Old Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Revolving credit facility maximum borrowing capacity | $ 750,000,000 |
Long-Term Debt - 2022 Notes - A
Long-Term Debt - 2022 Notes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | May 24, 2016 | |
Debt Instrument [Line Items] | |||
Gain (loss) on retirement of debt | $ (200,000) | ||
2022 Notes [Member] | |||
Debt Instrument [Line Items] | |||
Aggregate amount of senior notes issued | $ 650,000,000 | ||
Debt Instrument Percentage | 11.00% | ||
Principal amount of debt instrument repurchased | 11,600,000 | $ 50,500,000 | |
Debt instruments senior notes retired | $ 11,800,000 | $ 52,200,000 | |
2022 Notes [Member] | Joseph T. Ryerson [Member] | |||
Debt Instrument [Line Items] | |||
Maximum percentage of dividend of cumulative net income | 50.00% | ||
2022 Notes [Member] | Redeemable in twelve months beginning May 15, 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Redemption price as a percentage of principal amount | 105.50% | ||
2022 Notes [Member] | Redeemable in twelve months beginning May 15, 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Redemption price as a percentage of principal amount | 102.75% | ||
2022 Notes [Member] | Redeemable in twelve months beginning May 15, 2021 and thereafter [Member] | |||
Debt Instrument [Line Items] | |||
Redemption price as a percentage of principal amount | 100.00% | ||
2022 Notes [Member] | Redeemable before May 15, 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Redemption price as a percentage of principal amount | 100.00% | ||
Optional redemption price as a percentage of principal amount | 111.00% | ||
2022 Notes [Member] | Redeemable before May 15, 2019 [Member] | Maximum [Member] | |||
Debt Instrument [Line Items] | |||
Optional redemption amount prior to redemption date | 35.00% | ||
2022 Notes [Member] | Other Income and (Expense), Net [Member] | |||
Debt Instrument [Line Items] | |||
Gain (loss) on retirement of debt | $ (200,000) |
Long-Term Debt - Foreign Debt -
Long-Term Debt - Foreign Debt - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Foreign debt | $ 18.7 | $ 19.5 |
Foreign Debt [Member] | ||
Debt Instrument [Line Items] | ||
Available credit facility | 27 | 26 |
Letters of credit issued by our foreign subsidiaries | 4 | 3 |
Foreign Debt [Member] | Owed to Banks [Member] | Ryerson China [Member] | ||
Debt Instrument [Line Items] | ||
Foreign debt | $ 18.7 | $ 19.5 |
Weighted average interest rate | 4.30% | 4.30% |
Employee Benefits - Components
Employee Benefits - Components of Net Periodic Benefit (Credit) Cost (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Pension Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | $ 1 | |
Interest cost | 7 | $ 6 |
Expected return on assets | (9) | (10) |
Recognized actuarial (gain) loss | 4 | 4 |
Net periodic benefit (credit) cost | 3 | |
Other Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Interest cost | 1 | 1 |
Recognized actuarial (gain) loss | (2) | (2) |
Amortization of prior service credit | (1) | (1) |
Net periodic benefit (credit) cost | $ (2) | $ (2) |
Employee Benefits - Additional
Employee Benefits - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |
Contribution to the pension plan fund | $ 6 |
Anticipated minimum required pension contribution funding for the remainder of fiscal period | $ 20 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | Jan. 06, 2017 | Mar. 31, 2019 |
Loss Contingencies [Line Items] | ||
Record of decision description | The ROD includes a combination of dredging, capping, and enhanced natural recovery that would take approximately thirteen years to construct plus additional time for monitored natural recovery | |
Estimated present value cost for construction and recovery | $ 1,050 | |
Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Loss contingency on remediation plan of original ROD period | 2 years | |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Loss contingency on remediation plan of original ROD period | 3 years |
Derivatives and Fair Value Me_3
Derivatives and Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2017 | |
Minimum [Member] | |||
Derivatives Fair Value [Line Items] | |||
General term for commodity and exchange contracts | 3 months | ||
Maximum [Member] | |||
Derivatives Fair Value [Line Items] | |||
General term for commodity and exchange contracts | 12 months | ||
Interest Rate Swap [Member] | |||
Derivatives Fair Value [Line Items] | |||
Derivative notional amount | $ 150 | $ 150 | |
Fair value of interest rate swaps | 1 | ||
Derivative gain (loss) to be reclassified into interest income during next 12 months | $ 1 | ||
Interest Rate Swap [Member] | Ryerson Credit Facility [Member] | |||
Derivatives Fair Value [Line Items] | |||
Derivative notional amount | $ 150 | ||
Derivative fixed interest rate | 1.658% |
Derivatives and Fair Value Me_4
Derivatives and Fair Value Measurements - Location and Fair Value Amount of Derivative Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Derivatives Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | $ 3.5 | $ 3.3 |
Liability Derivatives, Fair Value | 3.6 | 5.4 |
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Metal Commodity Contracts [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 1.6 | 1.6 |
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Metal Commodity Contracts [Member] | Other Accrued Liabilities [Member] | ||
Derivatives Fair Value [Line Items] | ||
Liability Derivatives, Fair Value | 3.6 | 5.4 |
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Crude Oil Contracts [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 0.9 | |
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Foreign Exchange Contracts [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | 0.2 | |
Derivatives designated as hedging instruments under ASC 815 [Member] | Interest Rate Swap [Member] | Deferred charges and other assets [Member] | ||
Derivatives Fair Value [Line Items] | ||
Asset Derivatives, Fair Value | $ 1 | $ 1.5 |
Derivatives and Fair Value Me_5
Derivatives and Fair Value Measurements - Volume of Company 's Activity in Derivative Instruments (Detail) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($)Tbbl | Dec. 31, 2018USD ($)T | |
Nickel Swap Contracts [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Notional Value | 377 | 1,541 |
Hot Roll Coil Swap Contracts [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Notional Value | 45,780 | 36,365 |
Aluminum Swap Contracts [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Notional Value | 30,369 | 42,419 |
Iron Ore Swap Contracts [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Notional Value | 270,000 | |
Crude Oil Swap Contracts [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Notional Value | bbl | 114,000 | |
Foreign Exchange Contracts [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative notional amount | $ | $ 2.6 | $ 4.5 |
Interest Rate Swap [Member] | ||
Derivatives Fair Value [Line Items] | ||
Derivative notional amount | $ | $ 150 | $ 150 |
Derivatives and Fair Value Me_6
Derivatives and Fair Value Measurements - Location and Amount of Gains and Losses on Derivatives Not Designated as Hedging Instruments Reported in Condensed Consolidated Statements of Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments Gain Loss [Line Items] | ||
Amount of Gain/(Loss) Recognized in Income on Derivatives | $ 2.8 | $ (0.8) |
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of Gain/(Loss) Recognized in Income on Derivatives | 2.4 | (0.2) |
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Metal Commodity Contracts [Member] | Cost of Materials Sold [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of Gain/(Loss) Recognized in Income on Derivatives | 1.6 | (0.4) |
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Crude Oil Contracts [Member] | Warehousing, Delivery, Selling, General, and Administrative [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of Gain/(Loss) Recognized in Income on Derivatives | 0.9 | |
Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Foreign Exchange Contracts [Member] | Other Income and (Expense), Net [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Amount of Gain/(Loss) Recognized in Income on Derivatives | $ (0.1) | $ 0.2 |
Derivatives and Fair Value Me_7
Derivatives and Fair Value Measurements - Location and Amount of Gains and Losses on Derivatives Designated as Hedging Instruments Reported in Condensed Consolidated Statements of Comprehensive Income (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Derivatives designated as hedging instruments under ASC 815 [Member] | Interest Rate Swap [Member] | Interest and Other Expense on Debt [Member] | |
Derivative Instruments Gain Loss [Line Items] | |
Amount of Gain/(Loss) Reclassified from Accumulated Other Comprehensive Income into Income | $ 0.3 |
Derivatives and Fair Value Me_8
Derivatives and Fair Value Measurements - Assets and Liabilities Measured and Recorded at Fair Value (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Asset Derivatives, Fair Value | $ 3.5 | $ 3.3 |
Liability Derivatives, Fair Value | 3.6 | 5.4 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Asset Derivatives, Fair Value | 3.5 | 3.3 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Metal Commodity Contracts [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Asset Derivatives, Fair Value | 1.6 | 1.6 |
Liability Derivatives, Fair Value | 3.6 | 5.4 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Crude Oil Contracts [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Asset Derivatives, Fair Value | 0.9 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Derivatives Not Designated as Hedging Instruments under ASC 815 [Member] | Foreign Exchange Contracts [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Asset Derivatives, Fair Value | 0.2 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Derivatives designated as hedging instruments under ASC 815 [Member] | Interest Rate Swap [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Asset Derivatives, Fair Value | $ 1 | $ 1.5 |
Derivatives and Fair Value Me_9
Derivatives and Fair Value Measurements - Carrying and Estimated Fair Values Financial Instruments (Detail) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Carrying Amount [Member] | ||
Derivatives Fair Value [Line Items] | ||
Cash and cash equivalents | $ 22 | $ 23.2 |
Restricted cash | 1.1 | 1.1 |
Receivables less provisions | 590.4 | 521 |
Accounts payable | 483.5 | 390.2 |
Long-term debt, including current portion | 1,156.5 | 1,153.3 |
Fair Value [Member] | ||
Derivatives Fair Value [Line Items] | ||
Cash and cash equivalents | 22 | 23.2 |
Restricted cash | 1.1 | 1.1 |
Receivables less provisions | 590.4 | 521 |
Accounts payable | 483.5 | 390.2 |
Long-term debt, including current portion | $ 1,191.9 | $ 1,158.5 |
Stockholders' Equity (Deficit_3
Stockholders' Equity (Deficit), Accumulated Other Comprehensive Income (Loss) and Noncontrolling Interest - Change in Stockholders' Equity (Deficit) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Beginning Balance | $ 75.9 | $ (7.4) |
Beginning Balance, shares | 37,656,505 | |
Beginning Balance Treasury Stock, shares | 212,500 | |
Net income | $ 29.6 | 10.6 |
Foreign currency translation | 3 | (1.4) |
Foreign currency loss on intra-entity transactions | (1.3) | |
Changes in defined benefit pension and other post-retirement benefit plans, net of tax | 0.9 | 1 |
Stock-based compensation expense | 0.8 | 0.7 |
Cash flow hedge - interest rate swap, net of tax | (0.4) | 0.7 |
Ending Balance | $ 112.8 | 5.2 |
Ending Balance, shares | 37,665,580 | |
Ending Balance Treasury Stock, shares | 212,500 | |
ASC 842 [Member] | ||
Adoption of accounting principal | $ 3 | |
ASC 606 [Member] | ||
Adoption of accounting principal | 2.3 | |
Common Stock [Member] | ||
Beginning Balance | $ 0.4 | $ 0.4 |
Beginning Balance, shares | 37,656,000 | 37,421,000 |
Stock-based compensation expense, shares | 10,000 | |
Ending Balance | $ 0.4 | $ 0.4 |
Ending Balance, shares | 37,666,000 | 37,421,000 |
Treasury Stock [Member] | ||
Beginning Balance | $ (6.6) | $ (6.6) |
Beginning Balance Treasury Stock, shares | 213,000 | 213,000 |
Ending Balance | $ (6.6) | $ (6.6) |
Ending Balance Treasury Stock, shares | 213,000 | 213,000 |
Capital in Excess of Par Value [Member] | ||
Beginning Balance | $ 381 | $ 377.6 |
Stock-based compensation expense | 0.8 | 0.7 |
Ending Balance | 381.8 | 378.3 |
Retained Earnings (Accumulated Deficit) [Member] | ||
Beginning Balance | 14.2 | (95.1) |
Net income | 29.5 | 10.4 |
Ending Balance | 46.7 | (81.4) |
Retained Earnings (Accumulated Deficit) [Member] | ASC 842 [Member] | ||
Adoption of accounting principal | 3 | |
Retained Earnings (Accumulated Deficit) [Member] | ASU 2016-01 [Member] | ||
Adoption of accounting principal | 1 | |
Retained Earnings (Accumulated Deficit) [Member] | ASC 606 [Member] | ||
Adoption of accounting principal | 2.3 | |
Foreign Currency Translation [Member] | ||
Beginning Balance | (52.8) | (41.6) |
Foreign currency translation | 2.9 | (1.4) |
Foreign currency loss on intra-entity transactions | (1.3) | |
Ending Balance | (49.9) | (44.3) |
Benefit Plan Liabilities [Member] | ||
Beginning Balance | (264) | (246.3) |
Changes in defined benefit pension and other post-retirement benefit plans, net of tax | 0.9 | 1 |
Ending Balance | (263.1) | (245.3) |
Cash Flow Hedge - Interest Rate Swap [Member] | ||
Beginning Balance | 1 | 0.6 |
Cash flow hedge - interest rate swap, net of tax | (0.4) | 0.7 |
Ending Balance | 0.6 | 1.3 |
Non-controlling Interest [Member] | ||
Beginning Balance | 2.7 | 2.6 |
Net income | 0.1 | 0.2 |
Foreign currency translation | 0.1 | |
Ending Balance | $ 2.9 | 2.8 |
Unrealized Gain (Loss) on Equity Securities [Member] | ||
Beginning Balance | 1 | |
Unrealized Gain (Loss) on Equity Securities [Member] | ASU 2016-01 [Member] | ||
Adoption of accounting principal | $ (1) |
Stockholders' Equity (Deficit_4
Stockholders' Equity (Deficit), Accumulated Other Comprehensive Income (Loss) and Noncontrolling Interest - Change in Stockholders' Equity (Deficit) (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Changes in defined benefit pension and other post-retirement benefit plans, tax | $ 0.3 | $ 0.3 |
Changes in interest rate swap, tax | 0.1 | 0.5 |
ASC 842 [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Changes due to adoption of ASC | $ 1.1 | |
ASC 606 [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Changes due to adoption of ASC | $ 0.7 |
Stockholders' Equity (Deficit_5
Stockholders' Equity (Deficit), Accumulated Other Comprehensive Income (Loss) and Noncontrolling Interest - Changes in Accumulated Other Comprehensive Income/(Loss) Net of Tax by Component (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Accumulated other comprehensive income (loss) net of tax, beginning balance | $ (315.8) |
Accumulated other comprehensive income (loss) net of tax, ending balance | (312.4) |
Foreign Currency Translation [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Accumulated other comprehensive income (loss) net of tax, beginning balance | (52.8) |
Other comprehensive income (loss) before reclassifications | 2.9 |
Net current-period other comprehensive income (loss) | 2.9 |
Accumulated other comprehensive income (loss) net of tax, ending balance | (49.9) |
Benefit Plan Liabilities [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Accumulated other comprehensive income (loss) net of tax, beginning balance | (264) |
Amounts reclassified from accumulated other comprehensive income into net income | 0.9 |
Net current-period other comprehensive income (loss) | 0.9 |
Accumulated other comprehensive income (loss) net of tax, ending balance | (263.1) |
Cash Flow Hedge - Interest Rate Swap [Member] | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Accumulated other comprehensive income (loss) net of tax, beginning balance | 1 |
Other comprehensive income (loss) before reclassifications | (0.2) |
Amounts reclassified from accumulated other comprehensive income into net income | (0.2) |
Net current-period other comprehensive income (loss) | (0.4) |
Accumulated other comprehensive income (loss) net of tax, ending balance | $ 0.6 |
Stockholders' Equity (Deficit_6
Stockholders' Equity (Deficit), Accumulated Other Comprehensive Income (Loss) and Noncontrolling Interest - Reclassifications Out of Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Amortization of Defined Benefit Pension and Other Post-retirement Benefit Plan Items, Actuarial Loss [Member] | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications out of AOCI | $ 1.9 | $ 2 |
Amortization of Defined Benefit Pension and Other Post-retirement Benefit Plan Items, Prior Service Credits [Member] | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications out of AOCI | (0.7) | (0.7) |
Amortization of Defined Benefit Pension and Other Post-retirement Benefit Plan Items [Member] | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications out of AOCI | 1.2 | 1.3 |
Tax benefit | (0.3) | (0.3) |
Net of tax | 0.9 | $ 1 |
Cash Flow Hedge - Interest Rate Swap [Member] | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Net of tax | 0.2 | |
Realized swap interest loss | (0.3) | |
Tax benefit | (0.1) | |
Net of tax | $ (0.2) |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($) | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Number of operating segments | 1 | |
Number of reportable segments | 1 | |
Payment terms on invoiced amounts | 30 days | |
Accounts receivables from contracts with customers | $ | $ 594 | $ 523.5 |
Minimum [Member] | ||
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | ||
Percentage of revenue from product sales | 75.00% |
Revenue Recognition - Percentag
Revenue Recognition - Percentage of Sales by Major Product Lines (Detail) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Product Line | ||
Percentage of sales by major product lines | 100.00% | 100.00% |
Carbon Steel Flat [Member] | ||
Product Line | ||
Percentage of sales by major product lines | 25.00% | 27.00% |
Carbon Steel Plate [Member] | ||
Product Line | ||
Percentage of sales by major product lines | 12.00% | 10.00% |
Carbon Steel Long [Member] | ||
Product Line | ||
Percentage of sales by major product lines | 16.00% | 12.00% |
Stainless Steel Flat [Member] | ||
Product Line | ||
Percentage of sales by major product lines | 15.00% | 17.00% |
Stainless Steel Plate [Member] | ||
Product Line | ||
Percentage of sales by major product lines | 4.00% | 4.00% |
Stainless Steel Long [Member] | ||
Product Line | ||
Percentage of sales by major product lines | 4.00% | 4.00% |
Aluminum Flat [Member] | ||
Product Line | ||
Percentage of sales by major product lines | 15.00% | 16.00% |
Aluminum Plate [Member] | ||
Product Line | ||
Percentage of sales by major product lines | 2.00% | 3.00% |
Aluminum Long [Member] | ||
Product Line | ||
Percentage of sales by major product lines | 5.00% | 5.00% |
Other [Member] | ||
Product Line | ||
Percentage of sales by major product lines | 2.00% | 2.00% |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Consolidated Financial Information of our Operations by Geographic Location (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 1,230.8 | $ 941.3 |
United States [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | 1,120.4 | 835.3 |
Foreign Countries [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Net sales | $ 110.4 | $ 106 |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Revenues by Type of Item Sold (Detail) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Total | 100.00% | 100.00% |
Revenue Recognized Point In Time | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue on products with an alternative use | 87.00% | 90.00% |
Revenue Recognized Over Time | ||
Disaggregation Of Revenue [Line Items] | ||
Revenue on products with no alternative use | 13.00% | 10.00% |
Revenue Recognition - Summary_3
Revenue Recognition - Summary of Significant Changes in Contract Assets and Contract Liabilities Balances (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Changes in the Contract Assets | |
Beginning Balance | $ 16.6 |
Net contract assets added for products with no alternative during the period | 2.5 |
Changes to reserves | 3.2 |
Ending Balance | 22.3 |
Changes in the Contract Liabilities | |
Beginning Balance | 10 |
Satisfied contract liability from beginning of the period | (1.7) |
Contract liability incurred during the period | 2.1 |
Net contract liabilities added for products with no alternative during the period | 0.1 |
Ending Balance | $ 10.5 |
Revenue Recognition - Additio_2
Revenue Recognition - Additional Information 1 (Detail) | Mar. 31, 2019 |
Maximum [Member] | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-04-01 | |
Revenue Initial Application Period Cumulative Effect Transition [Line Items] | |
Performance obligations on contracts have expected duration | 1 year |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Income Tax [Line Items] | |||
Provision for income taxes | $ 13 | $ 4.1 | |
Valuation allowance | 29.3 | $ 29.3 | |
GILTI [Member] | |||
Income Tax [Line Items] | |||
Provision for income taxes | $ 3.1 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net income attributable to Ryerson Holding Corporation | $ 29.5 | $ 10.4 |
Denominator: | ||
Weighted average shares outstanding | 37,449,450 | 37,208,581 |
Dilutive effect of stock-based awards | 391,013 | 329,979 |
Weighted average shares outstanding adjusted for dilutive securities | 37,840,463 | 37,538,560 |
Earnings per share | ||
Basic | $ 0.79 | $ 0.28 |
Diluted | $ 0.78 | $ 0.28 |