Item 1.
Financial Statements
RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
(In millions, except per share data)
| Three Months Ended |
| March 31, |
| 2016 | 2015 |
| Net sales | $ | 702.6 | $ | 868.0 |
| Cost of materials sold | 555.0 | 718.0 |
| Gross profit | 147.6 | 150.0 |
| Warehousing, delivery, selling, general and administrative | 109.3 | 116.4 |
| Operating profit | 38.3 | 33.6 |
| Other income and (expense), net | 5.3 | (11.3 | ) |
| Interest and other expense on debt | (22.0 | ) | (25.3 | ) |
| Income (loss) before income taxes | 21.6 | (3.0 | ) |
| Provision (benefit) for income taxes | 8.1 | (0.2 | ) |
| Net income (loss) | 13.5 | (2.8 | ) |
| Less: Net loss attributable to noncontrolling interest | — | (0.3 | ) |
| Net income (loss) attributable to Ryerson Holding Corporation | $ | 13.5 | $ | (2.5 | ) |
| Comprehensive income (loss) | $ | 21.9 | $ | (9.1 | ) |
| Less: Comprehensive loss attributable to noncontrolling interest | — | (0.3 | ) |
| Comprehensive income (loss) attributable to Ryerson Holding Corporation | $ | 21.9 | $ | (8.8 | ) |
| Basic and diluted earnings (loss) per share | $ | 0.42 | $ | (0.08 | ) |

See Notes to Condensed Consolidated Financial Statements.
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RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
| Three Months Ended |
| March 31, |
| 2016 | 2015 |
| Operating activities: |
| Net income (loss) | $ | 13.5 | $ | (2.8 | ) |
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
| Depreciation and amortization | 10.9 | 11.1 |
| Stock-based compensation | 0.2 | — |
| Deferred income taxes | 8.4 | (1.0 | ) |
| Provision for allowances, claims and doubtful accounts | 0.9 | 1.5 |
| (Gain) loss on retirement of debt | (8.2 | ) | 0.5 |
| Other-than-temporary impairment charge on available-for-sale investments | — | 12.3 |
| Other items | (0.1 | ) | (0.2 | ) |
| Change in operating assets and liabilities: |
| Receivables | (36.0 | ) | (16.9 | ) |
| Inventories | (12.6 | ) | 70.8 |
| Other assets | 6.0 | 2.5 |
| Accounts payable | 54.6 | 31.9 |
| Accrued liabilities | 16.9 | 6.8 |
| Accrued taxes payable/receivable | 0.2 | (1.3 | ) |
| Deferred employee benefit costs | (7.7 | ) | (13.6 | ) |
| Net adjustments | 33.5 | 104.4 |
| Net cash provided by operating activities | 47.0 | 101.6 |
| Investing activities: |
| Increase in restricted cash | (0.9 | ) | — |
| Capital expenditures | (5.4 | ) | (5.7 | ) |
| Proceeds from sale of property, plant and equipment | 1.2 | 0.1 |
| Net cash used in investing activities | (5.1 | ) | (5.6 | ) |
| Financing activities: |
| Repayment of debt | (16.9 | ) | (30.3 | ) |
| Net repayments of short term borrowings | (23.5 | ) | (26.9 | ) |
| Net increase (decrease) in book overdrafts | 4.4 | (25.1 | ) |
| Principal payments on capital lease obligations | (1.3 | ) | (0.4 | ) |
| Net cash used in financing activities | (37.3 | ) | (82.7 | ) |
| Net increase in cash and cash equivalents | 4.6 | 13.3 |
| Effect of exchange rate changes on cash and cash equivalents | 2.7 | (2.5 | ) |
| Net change in cash and cash equivalents | 7.3 | 10.8 |
| Cash and cash equivalents—beginning of period | 63.2 | 60.0 |
| Cash and cash equivalents—end of period | $ | 70.5 | $ | 70.8 |
| Supplemental disclosures: |
| Cash paid during the period for: |
| Interest paid to third parties | $ | 3.5 | $ | 5.2 |
| Income taxes, net | 0.4 | 0.9 |
| Noncash investing activities: |
| Asset additions under capital leases | $ | 0.5 | $ | 1.1 |

See Notes to Condensed Consolidated Financial Statements.
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RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES
Condensed Consolidated Balance Sheets
(In millions, except shares)
| March 31, | December 31, |
| 2016 | 2015 |
| (unaudited) |
| Assets |
| Current assets: |
| Cash and cash equivalents | $ | 70.5 | $ | 63.2 |
| Restricted cash | 2.1 | 1.2 |
| Receivables less provision for allowances, claims and doubtful accounts of $5.9 in   2016 and $5.2 in 2015 | 343.0 | 305.7 |
| Inventories | 571.1 | 555.8 |
| Prepaid expenses and other current assets | 28.1 | 32.8 |
| Total current assets | 1,014.8 | 958.7 |
| Property, plant, and equipment, at cost | 661.1 | 654.5 |
| Less: Accumulated depreciation | 263.3 | 254.2 |
| Property, plant and equipment, net | 397.8 | 400.3 |
| Deferred income taxes | 17.1 | 31.8 |
| Other intangible assets | 44.7 | 46.2 |
| Goodwill | 103.2 | 103.2 |
| Deferred charges and other assets | 5.2 | 5.0 |
| Total assets | $ | 1,582.8 | $ | 1,545.2 |
| Liabilities |
| Current liabilities: |
| Accounts payable | $ | 265.9 | $ | 206.3 |
| Salaries, wages and commissions | 30.9 | 26.3 |
| Other accrued liabilities | 63.0 | 52.0 |
| Short-term debt | 20.8 | 22.0 |
| Current portion of deferred employee benefits | 9.2 | 9.1 |
| Total current liabilities | 389.8 | 315.7 |
| Long-term debt | 955.8 | 1,001.5 |
| Deferred employee benefits | 320.9 | 327.7 |
| Taxes and other credits | 35.0 | 41.1 |
| Total liabilities | 1,701.5 | 1,686.0 |
| Commitments and contingencies |
| Redeemable noncontrolling interest | (0.1 | ) | 0.1 |
| Equity |
| Ryerson Holding Corporation stockholders’ equity (deficit): |
| Preferred stock, $0.01 par value; 7,000,000 shares authorized and no shares   issued at 2016 and 2015 | — | — |
| Common stock, $0.01 par value; 100,000,000 shares authorized; 32,312,200 shares   issued at 2016 and 2015 | 0.3 | 0.3 |
| Capital in excess of par value | 302.8 | 302.6 |
| Accumulated deficit | (117.4 | ) | (130.9 | ) |
| Treasury stock at cost – Common stock of 212,500 shares in 2016 and 2015 | (6.6 | ) | (6.6 | ) |
| Accumulated other comprehensive loss | (298.6 | ) | (307.0 | ) |
| Total Ryerson Holding Corporation stockholders’ equity (deficit) | (119.5 | ) | (141.6 | ) |
| Noncontrolling interest | 0.9 | 0.7 |
| Total equity (deficit) | (118.6 | ) | (140.9 | ) |
| Total liabilities and equity | $ | 1,582.8 | $ | 1,545.2 |

See Notes to Condensed Consolidated Financial Statements.
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RYERSON HOLDING CORPORATION AND SUBSIDIARY COMPANIES
Notes to Condensed Consolidated Financial Statements (Unaudited)
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 66% of our issued and outstanding common stock.
Ryerson Holding conducts materials distribution operations in the United States through JT Ryerson, in Canada through its indirect wholly-owned subsidiary Ryerson Canada, Inc., a Canadian corporation (“Ryerson Canada”) and in Mexico through its 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 Ryerson China Limited (“Ryerson China”), and in Brazil through Açofran Aços e Metais Ltda (“Açofran”), a company in which we have a 50% direct ownership percentage. Unless the context indicates otherwise, Ryerson Holding, JT Ryerson, Ryerson Canada, Ryerson China, Ryerson Mexico and Açofran together with their subsidiaries, are collectively referred to herein as “Ryerson,” “we,” “us,” “our,” or the “Company.”
The following table shows our percentage of sales by major product lines for the three months ended March 31, 2016 and 2015, respectively:
| Three Months Ended |
| March 31, |
| Product Line | 2016 | 2015 |
| Carbon Steel Flat | 25 | % | 23 | % |
| Carbon Steel Plate | 10 | 11 |
| Carbon Steel Long | 16 | 17 |
| Stainless Steel Flat | 16 | 16 |
| Stainless Steel Plate | 4 | 4 |
| Stainless Steel Long | 3 | 4 |
| Aluminum Flat | 16 | 16 |
| Aluminum Plate | 3 | 3 |
| Aluminum Long | 5 | 4 |
| Other | 2 | 2 |
| Total | 100 | % | 100 | % |

Results of operations for any interim period are not necessarily indicative of results of any other periods or for the year. The financial statements as of March 31, 2016 and for the three months ended March 31, 2016 and 2015 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 financial statements should be read in conjunction with the financial statements and related notes contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.
NOTE 2: RECENT ACCOUNTING PRONOUNCEMENTS
Impact of Recently Issued Accounting Standards—Adopted
In April 2015, the FASB issued Accounting Standards Update (“ASU”) 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The update requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. Debt disclosures will include the face amount of the debt liability and the effective interest rate. The update requires retrospective application and represents a change in accounting principle. The update is effective for fiscal years beginning after December 15, 2015. We adopted this guidance for our fiscal year beginning January 1, 2016. The adoption resulted in the reclassification of $11.0 million of capitalized debt issuance costs from deferred charges and other assets to long-term debt at December 31, 2015.
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In April 2015, the FASB issued ASU 2015-05, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement.” The amendments in this update provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the update specifies that the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. The update further specifies that the customer should account for a cloud computing arrangement as a service contract if the arrangement does not include a software license. ASU 2015-05 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. We adopted this guidance for our fiscal year beginning January 1, 2016. The adoption of this guidance did not have an impact on our consolidated financial statements.
In September 2015, the FASB issued ASU 2015-16, “Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments.” The amendment eliminates the requirement that an acquirer in a business combination account for measurement-period adjustments retrospectively. Instead the acquirer will recognize a measurement-period adjustment during the period in which it determines the amount of the adjustment. The update is effective for fiscal years beginning after December 15, 2015. We adopted this guidance for our fiscal year beginning January 1, 2016. The adoption of this guidance did not have a material impact on our consolidated financial statements on prior acquisitions.
Impact of Recently Issued Accounting Standards—Not Yet Adopted
In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers,” which creates Accounting Standards Codification (“ASC”) 606 “Revenue from Contracts with Customers” and supersedes the revenue recognition requirements in ASC 605 “Revenue Recognition.” The update outlines a comprehensive model for all entities to use in accounting for revenue arising from contracts with customers as well as required disclosures. Entities have the option of using either a full retrospective or modified approach to adopt the new guidance. The new revenue standard is effective for interim reporting periods within annual reporting periods beginning after December 15, 2017. Early adoption is permitted. We will adopt this guidance for our fiscal year beginning January 1, 2018. We are still assessing the impact of adoption on our consolidated financial statements.
In March 2016, the FASB issued ASU 2016-08, “Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” The amendment clarifies the implementation guidance on principal versus agent considerations, and affects the guidance in ASU 2014-09 “Revenue from Contracts with Customers,” which is not yet effective. The update is effective for interim reporting periods within annual reporting periods beginning after December 15, 2017. Early adoption is permitted. We will adopt this guidance for our fiscal year beginning January 1, 2018. We are still assessing the impact of adoption on our consolidated financial statements.
In April 2016, the FASB issued ASU 2016-10, “Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing.” The amendment clarifies the implementation guidance on identifying performance obligations and accounting for licenses of intellectual property, and affects the guidance in ASU 2014-09 “Revenue from Contracts with Customers,” which is not yet effective. The update is effective for interim reporting periods within annual reporting periods beginning after December 15, 2017. Early adoption is permitted. We will adopt this guidance for our fiscal year beginning January 1, 2018. We are still assessing the impact of adoption on our consolidated financial statements.
In August 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements – Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern.” The guidance in ASU 2014-15 sets forth management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern as well as required disclosures. ASU 2014-15 indicates that, when preparing financial statements for interim and annual periods, management should evaluate whether conditions or events, in the aggregate, raise substantial doubt about the entity’s ability to continue as a going concern one year from the date the financial statements are issued or are available to be issued. This evaluation should include consideration of conditions and events that are either known or are reasonably knowable at the date the financial statements are issued or are available to be issued, as well as whether it is probable that management’s plans to address the substantial doubt will be implemented and, if so, whether it is probable that the plans will alleviate the substantial doubt. ASU 2014-15 is effective for annual periods ending after December 15, 2016, and interim periods and annual periods thereafter. Early adoption is permitted. We will adopt this guidance for our fiscal year ending December 31, 2016. The adoption of this guidance is not expected to have an impact on our consolidated financial statements.
In January 2016, the FASB issued ASU 2016-01, "Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities." The amendments in ASU 2016-01 change the accounting for non-consolidated equity investments that are not accounted for under the equity method of accounting by requiring changes in fair value to be recognized in net income. Under current guidance, changes in fair value for investments of this nature are recognized in accumulated other comprehensive income as a component of stockholders’ equity. Additionally, ASU 2016-01 simplifies the impairment assessment of equity investments without readily determinable fair values; requires entities to use the exit price when estimating the fair value of financial
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instruments; and modifies various presentation disclosure requirements for financial instruments. The update is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted. We will adopt this guidance for our fiscal year beginning January 1, 2018. We are still assessing the impact of adoption on our consolidated financial statements.
In February 2016, the FASB issued ASU 2016-02, “Leases” codified in ASC 842, “Leases.” The guidance requires that lessees will be required to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. The amendment also will require disclosures designed to give financial statement users information on the amount, timing, and uncertainty of cash flows arising from leases. These disclosures include qualitative and quantitative information. The update is effective for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted. We will adopt this guidance for our fiscal year beginning January 1, 2019. We are still assessing the impact of adoption on our consolidated financial statements.
In March 2016, the FASB issued ASU 2016-07, “Investments – Equity Method and Joint Ventures: Simplifying the Transition to the Equity Method of Accounting.” The amendment eliminates the retroactive adjustments to an investment upon it qualifying for the equity method of accounting as a result of an increase in the level of ownership interest or degree of influence by the investor. ASU 2016-07 requires that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investor's previously held interest and adopt the equity method of accounting as of the date the investment qualifies for equity method accounting. The update is effective for interim and annual reporting periods beginning after December 15, 2016. Early adoption is permitted. We will adopt this guidance for our fiscal year beginning January 1, 2017, including interim periods within that reporting period. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements.
In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting.” The amendment simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The update is effective for interim and annual periods beginning after December 15, 2016. Early adoption is permitted. We are still assessing the impact of adoption on our consolidated financial statements.
NOTE 3: 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, 2016 and December 31, 2015 as follows:
| March 31, | December 31, |
| 2016 | 2015 |
| (In millions) |
| In process and finished products | $ | 571.1 | $ | 555.8 |

If current cost had been used to value inventories, such inventories would have been $149 million lower and $122 million lower than reported at March 31, 2016 and December 31, 2015, respectively. Approximately 91% of inventories are accounted for under the LIFO method at March 31, 2016 and December 31, 2015. Non-LIFO inventories consist primarily of inventory at our foreign facilities using the weighted-average cost and the specific cost methods. Substantially all of our inventories consist of finished products.
Inventories are stated at the lower of cost or market value. We record amounts required, if any, to reduce the carrying value of inventory to its lower of cost or market as a charge to cost of materials sold. Due to the decline in metals prices, we recorded a lower of cost or market charge of $11.8 million and zero for the three months ended March 31, 2016 and 2015, respectively, to cost of materials sold to reflect this lower value. The lower of cost or market reserve totaled $49.7 million and $37.9 million at March 31, 2016 and December 31, 2015, respectively.
The Company has consignment inventory at certain customer locations, which totaled $8.3 million and $9.9 million at March 31, 2016 and December 31, 2015, respectively.
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NOTE 4: GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill, which represents the excess of cost over the fair value of net assets acquired, amounted to $103.2 million at March 31, 2016 and December 31, 2015. Pursuant to ASC 350, “Intangibles – Goodwill and Other,” we review the recoverability of goodwill annually as of October 1 or whenever significant events or changes occur which might impair the recovery of recorded amounts. The most recently completed impairment test of goodwill was performed as of October 1, 2015, and it was determined that no impairment existed in 2015.
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.
NOTE 5: ACQUISITIONS
Southern Tool Steel
On August 3, 2015, the Company acquired all of the issued and outstanding capital stock of Southern Tool Steel, Inc. (“Southern Tool”). Southern Tool is a distributor of long products, predominantly processed bars and tool steel, and is based in Chattanooga, TN. The acquisition is not material to our consolidated financial statements.
NOTE 6: LONG-TERM DEBT
Long-term debt consisted of the following at March 31, 2016 and December 31, 2015:
| March 31, | December 31, |
| 2016 | 2015 |
| (In millions) |
| Ryerson Credit Facility | $ | 249.9 | $ | 272.2 |
| 9% Senior Secured Notes due 2017 | 569.9 | 569.9 |
| 11.25% Senior Notes due 2018 | 145.3 | 170.4 |
| Foreign debt | 20.8 | 22.0 |
| Unamortized debt issuance costs | (9.3 | ) | (11.0 | ) |
| Total debt | 976.6 | 1,023.5 |
| Less: |
| Short-term foreign debt | 20.8 | 22.0 |
| Total long-term debt | $ | 955.8 | $ | 1,001.5 |

Ryerson Credit Facility
On July 24, 2015, Ryerson terminated its $1.35 billion revolving credit facility agreement (the “Old Credit Facility”) and entered into a new $1.0 billion revolving credit agreement (the “Ryerson Credit Facility”). Borrowings under the Ryerson Credit Facility were used to repay indebtedness under the Old Credit Facility. The Ryerson Credit Facility has a maturity date of the earlier of (a) July 24, 2020 or (b) 60 days prior to the stated maturity of any outstanding indebtedness with a principal amount of $50,000,000 or more. As a result of the Ryerson Credit Facility, the Company recorded a $2.9 million charge in the third quarter of 2015 to write-off a portion of the issuance costs associated with the Old Credit Facility.
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At March 31, 2016, Ryerson had $249.9 million of outstanding borrowings, $16 million of letters of credit issued and $240 million available under the Ryerson Credit Facility compared to $272.2 million of outstanding borrowings, $17 million of letters of credit issued and $185 million available at December 31, 2015. 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, a Canadian guarantor) 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 aggregate value of all inventory owned by a borrower (and in the case of Canadian accounts, a Canadian guarantor), with such inventory adjusted to exclude various ineligible inventory, including, among other things, (i) any inventory that is classified as “supplies” or is unsaleable in the ordinary course of business, (ii) 50% of the value of any inventory that (A) has not been sold or processed within a 180 day period and (B) which is calculated to have more than 365 days of supply based upon the immediately preceding 6 months consumption, and (iii) 50% of the value of inventory classified as partial inventory pieces on the basis that the inventory has been cut below sales lengths customary for such inventory. Qualified cash consists of cash in an eligible deposit account that is subject to customary restrictions and liens in favor of the lenders. The weighted average interest rate on the borrowings under the Ryerson Credit Facility was 2.5 percent and 2.1 percent at March 31, 2016 and December 31, 2015, respectively.
The total $1.0 billion Ryerson Credit Facility has an allocation of $925 million to the Company’s subsidiaries in the United States and an allocation of $75 million to Ryerson Holding’s Canadian subsidiary that is a borrower. Amounts outstanding under the Ryerson Credit Facility bear interest at (i) a rate determined by reference to (A) the base rate (the highest of the Federal Funds Rate plus 0.50%, Bank of America, N.A.’s prime rate and the one-month LIBOR rate plus 1.00%) or (B) a LIBOR rate or, (ii) for Ryerson Holding’s Canadian subsidiary that is a borrower, (A) a rate determined by reference to the Canadian base rate (the greatest of the Federal Funds Rate plus 0.50%, Bank of America-Canada Branch’s “base rate” for pricing loans in U.S. Dollars made at its “base rate” and the 30 day LIBOR rate plus 1.00%), (B) the prime rate (the greatest of the Bank of Canada overnight rate plus 0.50%, Bank of America-Canada Branch’s “prime rate” for commercial loans made by it in Canada in Canadian Dollars and the one-month Canadian bankers’ acceptance rate plus 1.00%) or (C) the bankers’ acceptance rate. The spread over the base rate and prime rate is between 0.25% and 0.75% and the spread over the LIBOR and for the bankers’ acceptances is between 1.25% and 1.75%, depending on the amount available to be borrowed under the Ryerson Credit Facility. Overdue amounts and all amounts owed during the existence of a default bear interest at 2% above the rate otherwise applicable thereto. Ryerson also pays commitment fees on amounts not borrowed at a rate of 0.25%.
Borrowings under the Ryerson Credit Facility are secured by first-priority liens on all of the inventory, accounts receivables, lockbox accounts and related assets of the borrowers and the guarantors.
The Ryerson Credit Facility also contains covenants that, among other things, restrict Ryerson and its restricted subsidiaries with respect to the incurrence of debt, the creation of liens, transactions with affiliates, mergers and consolidations, sales of assets and acquisitions. The Ryerson Credit Facility also requires that, if availability under the Ryerson Credit Facility declines to a certain level, Ryerson maintain a minimum fixed charge coverage ratio as of the end of each fiscal quarter, and includes defaults upon (among other things) the occurrence of a change of control of Ryerson and a cross-default to other financing arrangements.
The Ryerson Credit Facility contains events of default with respect to, among other things, default in the payment of principal when due or the payment of interest, fees and other amounts due thereunder after a specified grace period, material misrepresentations, failure to perform certain specified covenants, certain bankruptcy events, the invalidity of certain security agreements or guarantees, material judgments and the occurrence of a change of control of Ryerson. If such an event of default occurs, the lenders under the Ryerson Credit Facility will be entitled to various remedies, including acceleration of amounts outstanding under the Ryerson Credit Facility and all other actions permitted to be taken by secured creditors.
The lenders under the Ryerson Credit Facility have the ability to reject a borrowing request if any event, circumstance or development has occurred that has had or could reasonably be expected to have a material adverse effect on the Company. If Ryerson Holding, JT Ryerson, any of the other borrowers or any restricted subsidiaries of JT Ryerson becomes insolvent or commences bankruptcy proceedings, all amounts borrowed under the Ryerson Credit Facility will become immediately due and payable.
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Proceeds from borrowings under the Ryerson Credit Facility and repayments of borrowings thereunder that are reflected in the Condensed Consolidated Statements of Cash Flows represent borrowings under the Company’s revolving credit agreement with original maturities greater than three months. Net proceeds (repayments) under the Ryerson Credit Facility represent borrowings under the Ryerson Credit Facility with original maturities less than three months.
2017 and 2018 Notes
On October 10, 2012, JT Ryerson issued $600 million in aggregate principal amount of the 2017 Notes (the “2017 Notes”) and $300 million in aggregate principal amount of the 2018 Notes (together with the 2017 Notes, the “2017 and 2018 Notes”). The 2017 Notes bear interest at a rate of 9% per annum. The 2018 Notes bear interest at a rate of 11.25% per annum. The 2017 Notes are fully and unconditionally guaranteed on a senior secured basis and the 2018 Notes are fully and unconditionally guaranteed on a senior unsecured basis by all of our existing and future domestic subsidiaries that are co-borrowers or that have guarantee obligations under the Ryerson Credit Facility.
The 2017 Notes and related guarantees are secured by a first-priority lien on substantially all of our and our guarantors’ present and future assets located in the United States (other than receivables, inventory, related general intangibles, certain other assets and proceeds thereof), subject to certain exceptions and customary permitted liens. The 2017 Notes and related guarantees are secured on a second-priority basis by a lien on the assets that secure our obligations under the Ryerson Credit Facility. The 2018 Notes are not secured. The 2017 and 2018 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 future net income, once prior losses are offset.
The 2017 Notes became redeemable by the Company, in whole or in part on April 15, 2015 and the 2018 Notes became redeemable, in whole or in part, on October 15, 2015, in each case at specified redemption prices. If a change of control occurs, JT Ryerson must offer to purchase the 2017 and 2018 Notes at 101% of their principal amount, plus accrued and unpaid interest.
As of March 31, 2016, $569.9 million and $145.3 million of the original outstanding principal amount of the 2017 and 2018 Notes remain outstanding, respectively. The Company has repurchased and in the future may repurchase 2017 and 2018 Notes in the open market. During the first three months of 2016, a principal amount of $25.1 million of the 2018 Notes were repurchased for $16.9 million and retired, resulting in the recognition of a $8.2 million gain within other income and (expense), net on the Condensed Consolidated Statement of Comprehensive Income. During the first three months of 2015, a principal amount of $16.8 million of the 2017 Notes were repurchased for $17.0 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. During the first three months of 2015, a principal amount of $13.0 million of the 2018 Notes were repurchased for $13.3 million and retired, resulting in the recognition of a $0.3 million loss within other income and (expense), net on the Condensed Consolidated Statement of Comprehensive Income.
Foreign Debt
At March 31, 2016, Ryerson China’s total foreign borrowings were $20.6 million, which were owed to banks in Asia at a weighted average interest rate of 4.4% per annum and secured by inventory and property, plant and equipment. At December 31, 2015, Ryerson China’s total foreign borrowings were $21.8 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. Açofran’s total foreign borrowings were $0.2 million at March 31, 2016 and December 31, 2015.
Availability under the foreign credit lines was $25 million and $23 million at March 31, 2016 and December 31, 2015, respectively. Letters of credit issued by our foreign subsidiaries totaled $1 million and $2 million at March 31, 2016 and December 31, 2015, respectively.
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NOTE 7: EMPLOYEE BENEFITS
The following table summarizes the components of net periodic benefit cost for the three months ended March 31, 2016 and 2015 for the Ryerson pension plans and postretirement benefits other than pension:
| Three Months Ended March 31, |
| Pension Benefits | Other Benefits |
| 2016 | 2015 | 2016 | 2015 |
| (In millions) |
| Components of net periodic benefit (credit) cost |
| Service cost | $ | — | $ | 1 | $ | — | $ | — |
| Interest cost | 7 | 9 | 1 | 1 |
| Expected return on assets | (11 | ) | (12 | ) | — | — |
| Recognized actuarial (gain) loss | 3 | 3 | (2 | ) | (2 | ) |
| Amortization of prior service credit | — | — | (1 | ) | (1 | ) |
| Net periodic benefit (credit) cost | $ | (1 | ) | $ | 1 | $ | (2 | ) | $ | (2 | ) |

Contributions
The Company has contributed $2 million to the pension plan fund through the three months ended March 31, 2016 and anticipates that it will have a minimum required pension contribution funding of approximately $20 million for the remaining nine months of 2016.
NOTE 8: COMMITMENTS AND CONTINGENCIES
From time to time, we are named as a defendant in legal actions incidental to our ordinary course of business. We do not believe that the resolution of these claims will have a material adverse effect on our 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.
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 (“Portland Harbor”). On February 9, 2016, we received correspondence from the EPA stating that its initial Remedial Investigation and Feasibility Study will be completed in “early 2016,” a Proposed Plan for the site should be released in April 2016, and a final cleanup decision for the site should be published in the Record of Decision by December 31, 2016. As of May 5, 2016, the EPA’s Proposed Plan for the site has not been released. We do not currently have sufficient information available to us to determine the total cost of any required investigation or remediation of the Portland Harbor site and therefore, management cannot predict the ultimate outcome of this matter or estimate a range of potential loss at this time.
There are various claims and pending actions against the Company. The amount of liability, if any, for those claims and actions at March 31, 2016 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.
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NOTE 9: 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 our Canadian subsidiaries’ variability in cash flows from the forecasted payment of currencies other than the 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 periodically to reduce volatility in the price of 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. The Company currently does not account for its derivative contracts as hedges but rather marks them to market with a corresponding offset to current earnings. 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, 2016 and December 31, 2015:
| Asset Derivatives | Liability Derivatives |
| March 31, 2016 | December 31, 2015 | March 31, 2016 | December 31, 2015 |
| Balance | Balance | Balance | Balance |
| Sheet | Fair | Sheet | Fair | Sheet | Fair | Sheet | Fair |
| Location | Value | Location | Value | Location | Value | Location | Value |
| (In millions) |
| Derivatives not designated as hedging   instruments under ASC 815 |
| Foreign exchange contracts | Prepaid expenses and other current assets | $ | — | Prepaid expenses and other current assets | $ | 0.1 | Other accrued liabilities | $ | 0.1 | Other accrued liabilities | $ | — |
| Commodity contracts | Prepaid expenses and other current assets | 1.5 | Prepaid expenses and other current assets | — | Other accrued liabilities | 1.8 | Other accrued liabilities | 3.5 |
| Total derivatives | $ | 1.5 | $ | 0.1 | $ | 1.9 | $ | 3.5 |

As of March 31, 2016 and December 31, 2015, the Company’s foreign currency exchange contracts had a U.S. dollar notional amount of $2.2 million and $1.6 million, respectively. As of March 31, 2016 and December 31, 2015, the Company had 123 tons and 177 tons, respectively, of nickel futures or option contracts related to forecasted purchases. As of March 31, 2016 and December 31, 2015, the Company had 34,940 tons and 15,120 tons, respectively, of hot roll coil option contracts related to forecasted purchases and sales. The Company has aluminum price swaps related to forecasted purchases, which had a notional amount of 14,876 tons and 13,878 tons as of March 31, 2016 and December 31, 2015, respectively. As of March 31, 2016 and December 31, 2015, the Company has 390,000 gallons and 533,000 gallons, respectively, of diesel fuel hedge contracts related to forecasted purchases.
The following table summarizes the location and amount of gains and losses reported in our Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2016 and 2015:
| Derivatives not designated as | Location of Gain/(Loss) | Amount of Gain/(Loss) Recognized in Income on Derivatives |
| hedging instruments under | Recognized in Income on | Three Months Ended March 31, |
| ASC 815 | Derivatives | 2016 | 2015 |
| (In millions) |
| Foreign exchange contracts | Other income and (expense), net | $ | (0.2 | ) | $ | 0.1 |
| Commodity contracts | Cost of materials sold | 2.2 | (3.8 | ) |
| Diesel fuel hedges | Warehousing, delivery, selling, general and administrative | — | (0.1 | ) |
| Total | $ | 2.0 | $ | (3.8 | ) |

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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, 2016:
| At March 31, 2016 |
| Level 1 | Level 2 | Level 3 |
| (In millions) |
| Assets |
| Prepaid and other current assets: |
| Common stock—available-for-sale investment | $ | 3.8 | $ | — | $ | — |
| Mark-to-market derivatives: |
| Commodity contracts | $ | — | $ | 1.5 | $ | — |
| Liabilities |
| Mark-to-market derivatives: |
| Foreign exchange contracts | $ | — | $ | 0.1 | $ | — |
| Commodity contracts | — | 1.8 | — |
| Total liability derivatives | $ | — | $ | 1.9 | $ | — |

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, 2015:
| At December 31, 2015 |
| Level 1 | Level 2 | Level 3 |
| (In millions) |
| Assets |
| Prepaid and other current assets: |
| Common stock – available-for-sale investment | $ | 2.2 | $ | — | $ | — |
| Mark-to-market derivatives: |
| Foreign exchange contracts | $ | — | $ | 0.1 | $ | — |
| Liabilities |
| Mark-to-market derivatives: |
| Commodity contracts | $ | — | $ | 3.5 | $ | — |

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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 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 on the valuation date. The Company also has commodity derivatives to lock in hot roll coil and aluminum prices for varying time periods. The fair value of hot roll coil 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 New York Mercantile Exchange and the London Metals Exchange, respectively, for the commodity on the valuation date. The Company has various commodity derivatives to lock in diesel 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 of the Platts Index for Gulf Coast Ultra Low Sulfur Diesel on the valuation date. In addition, the Company has numerous foreign exchange contracts to hedge our Canadian subsidiaries’ variability in cash flows from the forecasted payment of currencies other than the functional currency, the Canadian dollar. 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 contract term varies in the number of months, but on average is between 3 to 12 months in length.
The carrying and estimated fair values of the Company’s financial instruments at March 31, 2016 and December 31, 2015 were as follows:
| At March 31, 2016 | At December 31, 2015 |
| Carrying Amount | Fair Value | Carrying Amount | Fair Value |
| (In millions) |
| Cash and cash equivalents | $ | 70.5 | $ | 70.5 | $ | 63.2 | $ | 63.2 |
| Restricted cash | 2.1 | 2.1 | 1.2 | 1.2 |
| Receivables less provision for allowances, claims and   doubtful accounts | 343.0 | 343.0 | 305.7 | 305.7 |
| Accounts payable | 265.9 | 265.9 | 206.3 | 206.3 |
| Long-term debt, including current portion | 976.6 | 848.9 | 1,023.5 | 855.3 |

The estimated fair value of the Company’s cash and cash equivalents, receivables less provision for allowances, claims and doubtful accounts 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).
Assets Held for Sale
The Company had $3.1 million and $4.2 million of assets held for sale, classified within “prepaid expenses and other current assets,” as of March 31, 2016 and December 31, 2015, respectively. The Company recorded a $0.4 million gain in the three months ended March 31, 2015, related to certain assets held for sale in order to recognize the assets at their fair value less cost to sell in accordance with ASC 360-10-35-43, “Property, Plant and Equipment – Other Presentation Matters.” The fair values less costs to sell of long-lived assets held for sale are assessed each reporting period that they remain classified as held for sale. Any increase or decrease in the held for sale long-lived asset’s fair value less cost to sell is reported as an adjustment to its carrying amount, except that the adjusted carrying amount cannot exceed the carrying amount of the long-lived asset at the time it was initially classified as held for sale. The fair values of each property were determined based on appraisals obtained from a third-party, pending sales contracts, or recent listing agreements with third-party brokerage firms.
The following table presents those assets that were measured at fair value on our Condensed Consolidated Balance Sheet on a non-recurring basis and their level within the fair value hierarchy at March 31, 2016:
| At March 31, 2016 |
| Level 1 | Level 2 | Level 3 |
| (In millions) |
| Assets |
| Prepaid expenses and other current assets – assets held for sale | $ | — | $ | 3.1 | $ | — |

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The following table presents those assets that were measured and recorded at fair value on our Condensed Consolidated Balance Sheet on a non-recurring basis and their level within the fair value hierarchy at December 31, 2015:
| At December 31, 2015 |
| Level 1 | Level 2 | Level 3 |
| (In millions) |
| Assets |
| Prepaid expenses and other current assets – assets held for sale | $ | — | $ | 4.2 | $ | — |

Available-For-Sale Investments
The Company has classified investments made during 2010 and 2012 as available-for-sale at the time of their purchase. Investments classified as available-for-sale are recorded at fair value with the related unrealized gains and losses included in accumulated other comprehensive income. Management evaluates investments in an unrealized loss position on whether an other-than-temporary impairment has occurred on a periodic basis. Factors considered by management in assessing whether an other-than-temporary impairment has occurred include: the nature of the investment; whether the decline in fair value is attributable to specific adverse conditions affecting the investment; the financial condition of the investee; the severity and the duration of the impairment; and whether we intend to sell the investment or will be required to sell the investment before recovery of its amortized cost basis. When it is determined that an other-than-temporary impairment has occurred, the investment is written down to its market value at the end of the period in which it is determined that an other-than-temporary decline has occurred. The investment was in a gross unrealized loss position for twelve months as of March 31, 2015. Based on the duration and severity of our unrealized loss, management determined that an other-than-temporary impairment occurred and thus recognized a $12.3 million impairment charge within other income and (expense), net in the first quarter of 2015. As of March 31, 2016, the investment has been in an unrealized loss position from its adjusted cost basis for nine months. Management does not currently intend to sell the investment before recovery of its adjusted cost basis. Realized gains and losses are recorded within the Condensed Consolidated Statement of Comprehensive Income upon sale of the security and are based on specific identification.
The Company’s available-for-sale securities as of March 31, 2016 can be summarized as follows:
| At March 31, 2016 |
| Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value |
| (In millions) |
| Common stock | $ | 5.1 | $ | — | $ | (1.3 | ) | $ | 3.8 |

The Company’s available-for-sale securities as of December 31, 2015 can be summarized as follows:
| At December 31, 2015 |
| Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value |
| (In millions) |
| Common stock | $ | 5.1 | $ | — | $ | (2.9 | ) | $ | 2.2 |

There is no maturity date for these investments and there have been no sales during the three months ended March 31, 2016.
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NOTE 10: STOCKHOLDERS’ EQUITY (DEFICIT), ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) AND REDEEMABLE NONCONTROLLING INTEREST
The following table details changes in these accounts:
| Ryerson Holding Corporation Stockholders |
| Accumulated Other Comprehensive Income (Loss) |
| Common Stock | Treasury Stock | Capital in Excess of Par Value | Accumulated Deficit | Foreign Currency Translation | Benefit Plan Liabilities | Available-For-Sale Investments | Noncontrolling Interest | Total Equity | Redeemable Noncontrolling Interest |
| Shares | Dollars | Shares | Dollars | Dollars | Dollars | Dollars | Dollars | Dollars | Dollars | Dollars | Dollars |
| (In millions, except shares in thousands) |
| Balance at January 1, 2016 | 32,312 | $ | 0.3 | 213 | $ | (6.6 | ) | $ | 302.6 | $ | (130.9 | ) | $ | (53.8 | ) | $ | (252.5 | ) | $ | (0.7 | ) | $ | 0.7 | $ | (140.9 | ) | $ | 0.1 |
| Net income (loss) | — | — | — | — | — | 13.5 | — | — | — | 0.2 | 13.7 | (0.2 | ) |
| Foreign currency translation | — | — | — | — | — | — | 4.2 | — | — | — | 4.2 | — |
| Gain on intra-entity foreign currency transactions | — | — | — | — | — | — | 3.0 | — | — | — | 3.0 | — |
| Changes in defined benefit pension and other post-retirement benefit plans, net of tax of $0.1 | — | — | — | — | — | — | — | 0.3 | — | — | 0.3 | — |
| Unrealized gain on available-for-sale investment, net of tax of $0.6 | — | — | — | — | — | — | — | — | 0.9 | — | 0.9 | — |
| Stock-based compensation expense | — | — | — | — | 0.2 | — | — | — | — | — | 0.2 | — |
| Balance at March 31, 2016 | 32,312 | $ | 0.3 | 213 | $ | (6.6 | ) | $ | 302.8 | $ | (117.4 | ) | $ | (46.6 | ) | $ | (252.2 | ) | $ | 0.2 | $ | 0.9 | $ | (118.6 | ) | $ | (0.1 | ) |

The following table details the changes in accumulated other comprehensive income (loss) for the three months ended March 31, 2016:
| Changes in Accumulated Other Comprehensive Income (Loss) by Component |
| Foreign Currency Translation | Benefit Plan Liabilities | Available- For-Sale Investments |
| (In millions) |
| Balance at January 1, 2016 | $ | (53.8 | ) | $ | (252.5 | ) | $ | (0.7 | ) |
| Other comprehensive income before   reclassifications | 7.2 | — | 0.9 |
| Amounts reclassified from accumulated other   comprehensive income | — | 0.3 | — |
| Net current-period other comprehensive income | 7.2 | 0.3 | 0.9 |
| Balance at March 31, 2016 | $ | (46.6 | ) | $ | (252.2 | ) | $ | 0.2 |

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The following table details the reclassifications out of accumulated other comprehensive income (loss) for the three months ended March 31, 2016 and 2015:
| 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, 2016 | March 31, 2015 | Consolidated Statements of |
| Comprehensive Income (Loss) Components | (In millions) | Comprehensive Income |
| Other-than-temporary impairment |
| Other-than-temporary impairment charge | $ | — | $ | 12.3 | Other income and (expense) net |
| Tax benefit | — | (4.7 | ) |
| Net of tax | $ | — | $ | 7.6 |
| Amortization of defined   benefit pension and other   post-retirement benefit plan items |
| Actuarial loss | $ | 1.1 | $ | 1.5 | Warehousing, delivery, selling, general and administrative |
| Prior service credit | (0.7 | ) | (0.6 | ) | Warehousing, delivery, selling, general and administrative |
| Total before tax | 0.4 | 0.9 |
| Tax provision | 0.1 | 0.3 |
| Net of tax | $ | 0.3 | $ | 0.6 |

NOTE 11: RELATED PARTIES
JT Ryerson, one of our subsidiaries, was party to a corporate advisory services agreement with Platinum Advisors, an affiliate of Platinum, pursuant to which Platinum Advisors provided JT Ryerson certain business, management, administrative and financial advice. On July 23, 2014, JT Ryerson’s Board of Directors approved the termination of this services agreement contingent on the closing of the initial public offering of Ryerson Holding common stock, which occurred on August 13, 2014. As consideration for terminating the advisory fee services agreement, Platinum Advisors and its affiliates were paid $15.0 million in August 2014, with an additional $10.0 million paid in August 2015. The total advisory fee recorded was zero for the three months ended March 31, 2016 and 2015.
NOTE 12: INCOME TAXES
For the three months ended March 31, 2016, the Company recorded income tax expense from operations of $8.1 million compared to an income tax benefit of $0.2 million in the prior year. The $8.1 million tax expense in the first three months of 2016 primarily represents taxes at local statutory rates where the Company operates, but generally excludes any tax benefit for losses in jurisdictions with historical losses.
In accordance with FASB ASC 740, “Income Taxes,” the Company assesses the realizability of its deferred tax assets. The Company records a valuation allowance when, based upon the evaluation of all available evidence, it is more-likely-than-not that all or a portion of the deferred tax assets will not be realized. In making 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 $24.3 million and $22.6 million at March 31, 2016 and December 31, 2015, respectively.
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NOTE 13: EARNINGS PER SHARE
Basic earnings (loss) per share attributable to Ryerson Holding’s common stock is determined based on earnings (loss) for the period divided by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) 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. Potentially dilutive securities whose effect would have been antidilutive were not significant for the three months ended March 31, 2016 and 2015.
The following table sets forth the calculation of basic and diluted earnings (loss) per share:
| Three Months Ended March 31, |
| Basic and diluted earnings (loss) per share | 2016 | 2015 |
| (In millions, except share and per share data) |
| Numerator: |
| Net income (loss) attributable to Ryerson Holding Corporation | $ | 13.5 | $ | (2.5 | ) |
| Denominator: |
| Weighted average shares outstanding | 32,099,700 | 32,037,500 |
| Dilutive effect of stock-based awards | — | — |
| Weighted average shares outstanding adjusted for dilutive securities | 32,099,700 | 32,037,500 |
| Earnings (loss) per share |
| Basic | $ | 0.42 | $ | (0.08 | ) |
| Diluted | $ | 0.42 | $ | (0.08 | ) |

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NOTE 14: CONDENSED CONSOLIDATING GUARANTOR FINANCIAL STATEMENTS
On October 10, 2012, JT Ryerson issued the 2017 and 2018 Notes. The 2017 Notes are fully and unconditionally guaranteed on a senior secured basis and the 2018 Notes are fully and unconditionally guaranteed on a senior unsecured basis by all of our existing and future domestic subsidiaries that are co-borrowers or guarantee obligations under the Ryerson Credit Facility. On December 30, 2014, Ryerson Holding entered into agreements with JT Ryerson, as issuer, Wells Fargo Bank, as trustee, and each of the guarantors party to the 2017 and 2018 Notes, whereby Ryerson Holding provided unconditional guarantees of the 2017 and 2018 Notes, jointly and severally with the other guarantors of the 2017 and 2018 Notes. Each guarantor of the 2017 and 2018 Notes is 100% owned by Ryerson Holding and the guarantees are joint and several. JT Ryerson may only pay dividends to Ryerson Holding to the extent of 50% of future net income, once prior losses are offset. Presented below is the condensed consolidating financial information of Ryerson Holding and its subsidiaries as of March 31, 2016 and December 31, 2015 and for the three months ended March 31, 2016 and 2015.
RYERSON HOLDING CORPORATION
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
THREE MONTHS ENDED MARCH 31, 2016
(In millions)
| Parent | Joseph T. Ryerson | Guarantor | Non- guarantor | Eliminations | Consolidated |
| Net sales | $ | — | $ | 601.2 | $ | 465.3 | $ | 89.3 | $ | (453.2 | ) | $ | 702.6 |
| Cost of materials sold | — | 477.6 | 456.5 | 74.1 | (453.2 | ) | 555.0 |
| Gross profit | — | 123.6 | 8.8 | 15.2 | — | 147.6 |
| Warehousing, delivery, selling, general and   administrative | 0.1 | 91.0 | 5.3 | 12.9 | — | 109.3 |
| Operating profit (loss) | (0.1 | ) | 32.6 | 3.5 | 2.3 | — | 38.3 |
| Other income and (expense), net | — | 8.2 | — | (2.9 | ) | — | 5.3 |
| Interest and other expense on debt | — | (21.5 | ) | — | (0.5 | ) | — | (22.0 | ) |
| Intercompany transactions: |
| Interest expense on intercompany loans | — | (2.1 | ) | — | (0.9 | ) | 3.0 | — |
| Interest income on intercompany loans | — | — | 3.0 | — | (3.0 | ) | — |
| Income (loss) before income taxes | (0.1 | ) | 17.2 | 6.5 | (2.0 | ) | — | 21.6 |
| Provision (benefit) for income taxes | (0.1 | ) | 5.0 | 3.3 | (0.1 | ) | — | 8.1 |
| Equity in (earnings) loss of subsidiaries | (13.5 | ) | (1.3 | ) | 1.7 | — | 13.1 | — |
| Net income (loss) | 13.5 | 13.5 | 1.5 | (1.9 | ) | (13.1 | ) | 13.5 |
| Less: Net income (loss) attributable to noncontrolling   interest | — | — | — | — | — | — |
| Net income (loss) attributable to Ryerson Holding   Corporation | $ | 13.5 | $ | 13.5 | $ | 1.5 | $ | (1.9 | ) | $ | (13.1 | ) | $ | 13.5 |
| Comprehensive income | $ | 21.9 | $ | 22.0 | $ | 2.4 | $ | 2.6 | $ | (27.0 | ) | $ | 21.9 |
| Less: Comprehensive income (loss) attributable to   noncontrolling interest | — | — | — | — | — | — |
| Comprehensive income attributable to Ryerson   Holding Corporation | $ | 21.9 | $ | 22.0 | $ | 2.4 | $ | 2.6 | $ | (27.0 | ) | $ | 21.9 |

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RYERSON HOLDING CORPORATION
CONDENSED CONSOLIDATING STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
THREE MONTHS ENDED MARCH 31, 2015
(In millions)
| Parent | Joseph T. Ryerson | Guarantor | Non- guarantor | Eliminations | Consolidated |
| Net sales | $ | — | $ | 738.1 | $ | 531.4 | $ | 102.2 | $ | (503.7 | ) | $ | 868.0 |
| Cost of materials sold | — | 615.5 | 518.5 | 87.7 | (503.7 | ) | 718.0 |
| Gross profit | — | 122.6 | 12.9 | 14.5 | — | 150.0 |
| Warehousing, delivery, selling, general and   administrative | 0.1 | 93.8 | 7.7 | 14.8 | — | 116.4 |
| Operating profit (loss) | (0.1 | ) | 28.8 | 5.2 | (0.3 | ) | — | 33.6 |
| Other income and (expense), net | — | (0.5 | ) | (12.3 | ) | 1.5 | — | (11.3 | ) |
| Interest and other expense on debt | — | (24.5 | ) | — | (0.8 | ) | — | (25.3 | ) |
| Intercompany transactions: |
| Interest expense on intercompany loans | — | (0.9 | ) | — | (1.0 | ) | 1.9 | — |
| Interest income on intercompany loans | — | — | 1.9 | — | (1.9 | ) | — |
| Income (loss) before income taxes | (0.1 | ) | 2.9 | (5.2 | ) | (0.6 | ) | — | (3.0 | ) |
| Provision (benefit) for income taxes | — | 2.2 | (3.1 | ) | 0.7 | — | (0.2 | ) |
| Equity in loss of subsidiaries | 2.4 | 3.1 | 0.8 | — | (6.3 | ) | — |
| Net loss | (2.5 | ) | (2.4 | ) | (2.9 | ) | (1.3 | ) | 6.3 | (2.8 | ) |
| Less: Net loss attributable to noncontrolling interest | — | — | — | (0.3 | ) | — | (0.3 | ) |
| Net loss attributable to Ryerson Holding Corporation | $ | (2.5 | ) | $ | (2.4 | ) | $ | (2.9 | ) | $ | (1.0 | ) | $ | 6.3 | $ | (2.5 | ) |
| Comprehensive income (loss) | $ | (8.8 | ) | $ | (8.8 | ) | $ | 0.9 | $ | (7.4 | ) | $ | 15.0 | $ | (9.1 | ) |
| Less: Comprehensive loss attributable to   noncontrolling interest | — | — | — | (0.3 | ) | — | (0.3 | ) |
| Comprehensive income (loss) attributable to   Ryerson Holding Corporation | $ | (8.8 | ) | $ | (8.8 | ) | $ | 0.9 | $ | (7.1 | ) | $ | 15.0 | $ | (8.8 | ) |

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RYERSON HOLDING CORPORATION
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED)
THREE MONTHS ENDED MARCH 31, 2016
(In millions)
| Parent | Joseph T. Ryerson | Guarantor | Non- guarantor | Eliminations | Consolidated |
| OPERATING ACTIVITIES: |
| Net income (loss) | $ | 13.5 | $ | 13.5 | $ | 1.5 | $ | (1.9 | ) | $ | (13.1 | ) | $ | 13.5 |
| Non-cash (income) expenses | (0.6 | ) | 7.2 | 4.9 | 0.6 | — | 12.1 |
| Equity in (earnings) loss of subsidiaries | (13.5 | ) | (1.3 | ) | 1.7 | — | 13.1 | — |
| Changes in working capital | 0.6 | 3.4 | 11.1 | 6.3 | — | 21.4 |
| Net adjustments | (13.5 | ) | 9.3 | 17.7 | 6.9 | 13.1 | 33.5 |
| Net cash provided by operating activities | — | 22.8 | 19.2 | 5.0 | — | 47.0 |
| INVESTING ACTIVITIES: |
| Capital expenditures | — | (5.2 | ) | — | (0.2 | ) | — | (5.4 | ) |
| Loan to related companies | — | — | (24.6 | ) | — | 24.6 | — |
| Other investing activities | — | (0.1 | ) | — | 0.2 | 0.2 | 0.3 |
| Net cash used in investing activities | — | (5.3 | ) | (24.6 | ) | — | 24.8 | (5.1 | ) |
| FINANCING ACTIVITIES: |
| Repayment of debt | — | (16.9 | ) | — | — | — | (16.9 | ) |
| Net repayments of short-term borrowings | — | (22.3 | ) | — | (1.2 | ) | — | (23.5 | ) |
| Proceeds from intercompany borrowings | — | 24.6 | — | — | (24.6 | ) | — |
| Other financing activities | — | (2.1 | ) | 5.2 | 0.2 | (0.2 | ) | 3.1 |
| Net cash provided by (used in) financing activities | — | (16.7 | ) | 5.2 | (1.0 | ) | (24.8 | ) | (37.3 | ) |
| Net increase (decrease) in cash and cash equivalents | — | 0.8 | (0.2 | ) | 4.0 | — | 4.6 |
| Effect of exchange rates on cash and cash equivalents | — | — | — | 2.7 | — | 2.7 |
| Net change in cash and cash equivalents | — | 0.8 | (0.2 | ) | 6.7 | — | 7.3 |
| Beginning cash and cash equivalents | — | 5.2 | 0.4 | 57.6 | — | 63.2 |
| Ending cash and cash equivalents | $ | — | $ | 6.0 | $ | 0.2 | $ | 64.3 | $ | — | $ | 70.5 |

22
RYERSON HOLDING CORPORATION
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS (UNAUDITED)
THREE MONTHS ENDED MARCH 31, 2015
(In millions)
| Parent | Joseph T. Ryerson | Guarantor | Non- guarantor | Eliminations | Consolidated |
| OPERATING ACTIVITIES: |
| Net loss | $ | (2.5 | ) | $ | (2.4 | ) | $ | (2.9 | ) | $ | (1.3 | ) | $ | 6.3 | $ | (2.8 | ) |
| Non-cash expenses | — | 12.0 | 9.9 | 2.3 | — | 24.2 |
| Equity in loss of subsidiaries | 2.4 | 3.1 | 0.8 | — | (6.3 | ) | — |
| Changes in working capital | 0.1 | 50.5 | 26.3 | 3.3 | — | 80.2 |
| Net adjustments | 2.5 | 65.6 | 37.0 | 5.6 | (6.3 | ) | 104.4 |
| Net cash provided by operating activities | — | 63.2 | 34.1 | 4.3 | — | 101.6 |
| INVESTING ACTIVITIES: |
| Capital expenditures | — | (4.9 | ) | (0.3 | ) | (0.5 | ) | — | (5.7 | ) |
| Loan repayment from related companies | — | — | 8.4 | — | (8.4 | ) | — |
| Other investing activities | — | — | — | 0.1 | — | 0.1 |
| Net cash provided by (used in) investing activities | — | (4.9 | ) | 8.1 | (0.4 | ) | (8.4 | ) | (5.6 | ) |
| FINANCING ACTIVITIES: |
| Repayment of debt | — | (30.3 | ) | — | — | — | (30.3 | ) |
| Net proceeds/(repayments) of short-term borrowings | — | (27.9 | ) | — | 1.0 | — | (26.9 | ) |
| Repayment of intercompany borrowings | — | (8.4 | ) | — | — | 8.4 | — |
| Net increase (decrease) in book overdrafts | — | 16.0 | (41.1 | ) | — | — | (25.1 | ) |
| Other financing activities | — | (0.4 | ) | — | — | — | (0.4 | ) |
| Net cash provided by (used in) financing activities | — | (51.0 | ) | (41.1 | ) | 1.0 | 8.4 | (82.7 | ) |
| Net increase in cash and cash equivalents | — | 7.3 | 1.1 | 4.9 | — | 13.3 |
| Effect of exchange rates on cash and cash equivalents | — | — | — | (2.5 | ) | — | (2.5 | ) |
| Net change in cash and cash equivalents | — | 7.3 | 1.1 | 2.4 | — | 10.8 |
| Beginning cash and cash equivalents | 11.1 | 4.6 | 0.7 | 43.6 | — | 60.0 |
| Ending cash and cash equivalents | $ | 11.1 | $ | 11.9 | $ | 1.8 | $ | 46.0 | $ | — | $ | 70.8 |

23
RYERSON HOLDING CORPORATION
CONDENSED CONSOLIDATING BALANCE SHEET (UNAUDITED)
MARCH 31, 2016
(In millions)
| Parent | Joseph T. Ryerson | Guarantor | Non- guarantor | Eliminations | Consolidated |
| ASSETS |
| Cash and cash equivalents | $ | — | $ | 6.0 | $ | 0.2 | $ | 64.3 | $ | — | $ | 70.5 |
| Receivables less provision for allowances, claims   and doubtful accounts | — | 264.9 | 6.7 | 71.4 | — | 343.0 |
| Inventories | — | 501.2 | 10.8 | 59.1 | — | 571.1 |
| Intercompany receivable | — | — | 160.4 | — | (160.4 | ) | — |
| Other current assets | — | 15.8 | 3.9 | 10.5 | — | 30.2 |
| Total current assets | — | 787.9 | 182.0 | 205.3 | (160.4 | ) | 1,014.8 |
| Investments in subsidiaries | — | 469.0 | 285.5 | — | (754.5 | ) | — |
| Intercompany notes receivable | — | — | 325.7 | — | (325.7 | ) | — |
| Property, plant and equipment net of accumulated   depreciation | — | 367.7 | 3.1 | 27.0 | — | 397.8 |
| Deferred charges | — | 4.2 | — | 1.0 | — | 5.2 |
| Other noncurrent assets | 30.0 | 90.4 | 57.1 | 4.5 | (17.0 | ) | 165.0 |
| Total assets | $ | 30.0 | $ | 1,719.2 | $ | 853.4 | $ | 237.8 | $ | (1,257.6 | ) | $ | 1,582.8 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
| Accounts payable | $ | — | $ | 56.6 | $ | 174.3 | $ | 35.0 | $ | — | $ | 265.9 |
| Intercompany payable | 0.8 | 136.6 | — | 23.0 | (160.4 | ) | — |
| Salaries, wages, and commissions | — | 30.1 | 0.1 | 0.7 | — | 30.9 |
| Short-term debt | — | — | — | 20.8 | — | 20.8 |
| Other current liabilities | — | 62.7 | 0.6 | 8.9 | — | 72.2 |
| Total current liabilities | 0.8 | 286.0 | 175.0 | 88.4 | (160.4 | ) | 389.8 |
| Dividends in excess of investment in subsidiaries | 148.7 | — | — | — | (148.7 | ) | — |
| Long-term debt | — | 955.8 | — | — | — | 955.8 |
| Long-term debt – intercompany | — | 279.9 | — | 45.8 | (325.7 | ) | — |
| Deferred employee benefits | — | 300.9 | — | 20.0 | — | 320.9 |
| Other noncurrent liabilities | — | 45.3 | 2.6 | 4.1 | (17.0 | ) | 35.0 |
| Total liabilities | 149.5 | 1,867.9 | 177.6 | 158.3 | (651.8 | ) | 1,701.5 |
| Redeemable noncontrolling interest | — | — | — | (0.1 | ) | — | (0.1 | ) |
| Ryerson Holding Corporation stockholders’ equity | (119.5 | ) | (148.7 | ) | 675.8 | 78.7 | (605.8 | ) | (119.5 | ) |
| Noncontrolling interest | — | — | — | 0.9 | — | 0.9 |
| Total liabilities and equity | $ | 30.0 | $ | 1,719.2 | $ | 853.4 | $ | 237.8 | $ | (1,257.6 | ) | $ | 1,582.8 |

24
RYERSON HOLDING CORPORATION
CONDENSED CONSOLIDATING BALANCE SHEET
DECEMBER 31, 2015
(In millions)
| Parent | Joseph T. Ryerson | Guarantor | Non-guarantor | Eliminations | Consolidated |
| ASSETS |
| Cash and cash equivalents | $ | — | $ | 5.2 | $ | 0.4 | $ | 57.6 | $ | — | $ | 63.2 |
| Receivables less provision for allowances, claims   and doubtful accounts | — | 228.7 | 6.6 | 70.4 | — | 305.7 |
| Inventories | — | 488.2 | 13.5 | 54.1 | — | 555.8 |
| Intercompany receivable | — | — | 132.7 | — | (132.7 | ) | — |
| Other current assets | — | 17.0 | 2.3 | 12.2 | 2.5 | 34.0 |
| Total current assets | — | 739.1 | 155.5 | 194.3 | (130.2 | ) | 958.7 |
| Investments in subsidiaries | — | 462.0 | 287.4 | 0.1 | (749.5 | ) | — |
| Intercompany notes receivable | — | — | 301.0 | — | (301.0 | ) | — |
| Property, plant and equipment net of accumulated   depreciation | — | 370.3 | 3.7 | 26.3 | — | 400.3 |
| Deferred charges | — | 3.9 | — | 1.1 | — | 5.0 |
| Other noncurrent assets | 29.9 | 91.5 | 60.1 | 4.1 | (4.4 | ) | 181.2 |
| Total assets | $ | 29.9 | $ | 1,666.8 | $ | 807.7 | $ | 225.9 | $ | (1,185.1 | ) | $ | 1,545.2 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
| Accounts payable | $ | — | $ | 45.0 | $ | 132.4 | $ | 28.9 | $ | — | $ | 206.3 |
| Intercompany payable | — | 111.8 | — | 20.9 | (132.7 | ) | — |
| Salaries, wages, and commissions | — | 24.8 | 0.5 | 1.0 | — | 26.3 |
| Short-term debt | — | — | — | 22.0 | — | 22.0 |
| Other current liabilities | 0.6 | 48.0 | 0.6 | 9.8 | 2.1 | 61.1 |
| Total current liabilities | 0.6 | 229.6 | 133.5 | 82.6 | (130.6 | ) | 315.7 |
| Dividends in excess of investment in subsidiaries | 170.9 | — | — | — | (170.9 | ) | — |
| Long-term debt | — | 1,001.5 | — | — | — | 1,001.5 |
| Long-term debt – intercompany | — | 258.1 | — | 42.9 | (301.0 | ) | — |
| Deferred employee benefits | — | 308.2 | — | 19.5 | — | 327.7 |
| Other noncurrent liabilities | — | 40.3 | 0.7 | 4.1 | (4.0 | ) | 41.1 |
| Total liabilities | 171.5 | 1,837.7 | 134.2 | 149.1 | (606.5 | ) | 1,686.0 |
| Redeemable noncontrolling interest | — | — | — | 0.1 | — | 0.1 |
| Ryerson Holding Corporation stockholders’ equity | (141.6 | ) | (170.9 | ) | 673.5 | 76.0 | (578.6 | ) | (141.6 | ) |
| Noncontrolling interest | — | — | — | 0.7 | — | 0.7 |
| Total liabilities and equity | $ | 29.9 | $ | 1,666.8 | $ | 807.7 | $ | 225.9 | $ | (1,185.1 | ) | $ | 1,545.2 |

25
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
This Quarterly Report contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements can be identified by the use of forward-looking terminology such as “believes,” “expects,” “may,” “estimates,” “will,” “should,” “plans” or “anticipates” or the negative thereof or other variations thereon or comparable terminology, or by discussions of strategy. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and may involve significant risks and uncertainties, and that actual results may vary materially from those in the forward-looking statements as a result of various factors. These forward-looking statements involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Forward-looking statements should, therefore, be considered in light of various factors, including those set forth under “Special Note Regarding Forward-Looking Statements” and “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 filed on March 9, 2016 and the caption “Industry and Operating Trends” included herein “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere in this Quarterly Report. Moreover, we caution you not to place undue reliance on these forward-looking statements, which speak only as of the date they were made. We do not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this Quarterly Report or to reflect the occurrence of unanticipated events.
The following discussion should be read in conjunction with the Company’s Condensed Consolidated Financial Statements and related Notes thereto in Item 1, “FINANCIAL STATEMENTS” in this Quarterly Report on Form 10-Q and the Company’s Consolidated Financial Statements and related Notes thereto for the year ended December 31, 2015 in the Company’s Annual Report on Form 10-K filed on March 9, 2016.
Industry and Operating Trends
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. We sell our products and services to many industries, including commercial ground transportation manufacturing, metal fabrication and machine shops, industrial machinery and equipment manufacturing, consumer durable production, HVAC manufacturing, construction equipment manufacturing, food processing and agricultural equipment manufacturing and oil and gas. Revenue is recognized upon delivery of product to customers. The timing of shipment is substantially the same as the timing of delivery to customers given the proximity of our distribution sites to our customers.
Sales, cost of materials sold, gross profit and operating expense control are the principal factors that impact our profitability:
Net sales. Our sales volume and pricing is driven by market demand, which is largely determined by overall industrial production and conditions in specific industries in which our customers operate. Sales prices are also primarily driven by market factors such as overall demand and availability of product. Our net sales include revenue from product sales, net of returns, allowances, customer discounts and incentives.
Cost of materials sold. Cost of materials sold includes metal purchase and in-bound freight costs, third-party processing costs and direct and indirect internal processing costs. The cost of materials sold fluctuates with our sales volume and our ability to purchase metals at competitive prices. Increases in sales volume generally enable us both to improve purchasing leverage with suppliers, as we buy larger quantities of metals inventories, and to reduce operating expenses per ton sold.
Gross profit. Gross profit is the difference between net sales and the cost of materials sold. Our sales prices to our customers are subject to market competition. Achieving acceptable levels of gross profit is dependent on our acquiring metals at competitive prices, our ability to manage the impact of changing prices and efficiently managing our internal and external processing costs.
Operating expenses. Optimizing business processes and asset utilization to lower fixed expenses such as employee, facility and truck fleet costs which cannot be rapidly reduced in times of declining volume, and maintaining a low fixed cost structure in times of increasing sales volume, have a significant impact on our profitability. Operating expenses include costs related to warehousing and distributing our products as well as selling, general and administrative expenses.
The metals service center industry is generally considered cyclical with periods of strong demand and higher prices followed by periods of weaker demand and lower prices due to the cyclical nature of the industries in which the largest consumers of metals operate. However, domestic metals prices are volatile and remain difficult to predict due to their commodity nature and the extent which prices are affected by interest rates, foreign exchange rates, energy prices, international supply/demand imbalances, surcharges and other factors.
26
Results of Operations—Comparison of First Quarter 2016 to First Quarter 2015
| Three Months Ended March 31, 2016 | % of Net Sales | Three Months Ended March 31, 2015 | % of Net Sales |
| ($ in millions) |
| Net sales | $ | 702.6 | 100.0 | % | $ | 868.0 | 100.0 | % |
| Cost of materials sold | 555.0 | 79.0 | 718.0 | 82.7 |
| Gross profit | 147.6 | 21.0 | 150.0 | 17.3 |
| Warehousing, delivery, selling, general and administrative expenses | 109.3 | 15.5 | 116.4 | 13.4 |
| Operating profit | 38.3 | 5.5 | 33.6 | 3.9 |
| Other expenses | (16.7 | ) | (2.4 | ) | (36.6 | ) | (4.2 | ) |
| Income (loss) before income taxes | 21.6 | 3.1 | (3.0 | ) | (0.3 | ) |
| Provision (benefit) for income taxes | 8.1 | 1.2 | (0.2 | ) | — |
| Net income (loss) | 13.5 | 1.9 | (2.8 | ) | (0.3 | ) |
| Less: Net loss attributable to noncontrolling interest | — | — | (0.3 | ) | — |
| Net income (loss) attributable to Ryerson Holding Corporation | $ | 13.5 | 1.9 | % | $ | (2.5 | ) | (0.3 | )% |
| Basic and diluted earnings (loss) per share | $ | 0.42 | $ | (0.08 | ) |

The following table shows the Company’s percentage of sales revenue by major product lines for the first quarter of 2016 and 2015:
| Three Months Ended March 31, |
| Product Line | 2016 | 2015 |
| Carbon Steel Flat | 25 | % | 23 | % |
| Carbon Steel Plate | 10 | 11 |
| Carbon Steel Long | 16 | 17 |
| Stainless Steel Flat | 16 | 16 |
| Stainless Steel Plate | 4 | 4 |
| Stainless Steel Long | 3 | 4 |
| Aluminum Flat | 16 | 16 |
| Aluminum Plate | 3 | 3 |
| Aluminum Long | 5 | 4 |
| Other | 2 | 2 |
| Total | 100 | % | 100 | % |

Net sales. Revenue for the first quarter of 2016 decreased 19.1% from the same period a year ago to $702.6 million. Average selling price decreased 19.4% from the price levels in the first quarter of 2015 reflecting weaker economic conditions in the metals market. Average selling price decreased for all of our product lines with the largest decreases in our stainless plate, stainless flat and carbon plate products. Tons sold increased 0.4% in the first quarter of 2016 compared to the first quarter of 2015 with increases in shipments of stainless plate and carbon flat product lines offset by decreases in our carbon plate and carbon long products.
Cost of materials sold. Cost of materials sold decreased 22.7% to $555.0 million in the first quarter of 2016 compared to $718.0 million in the first quarter of 2015. The decrease in cost of materials sold in the first quarter of 2016 compared to the same period a year ago is primarily due to a decrease in average cost of materials sold per ton in the first quarter of 2016 compared to the year ago period. The average cost of materials sold per ton decreased to $1,161 in the first quarter of 2016 from $1,509 in the first quarter of 2015. The average cost of materials sold for our stainless plate, stainless flat and carbon plate product lines decreased more than our other products, in line with the change in average selling price per ton for these products. During the first quarter of 2016, LIFO income was $26.6 million compared to LIFO income of $12.0 million in the first quarter of 2015. As a result of falling average selling prices, LIFO income in the first quarter of 2016 was partially offset by an $11.8 million charge to record inventory at the lower of cost or market.
Gross profit. Gross profit decreased by $2.4 million to $147.6 million in the first quarter of 2016. Gross profit as a percent of sales in the first quarter of 2016 increased to 21.0% from 17.3% in the first quarter of 2015. While our revenue per ton decreased in the first quarter of 2016 as compared to the first quarter of 2015, cost of materials sold per ton decreased at a faster pace resulting in higher gross margins.
27
Operating expenses. Total operating expenses decreased by $7.1 million to $109.3 million in the first quarter of 2016 from $116.4 million in the first quarter of 2015. The decrease was primarily due to lower employee benefit costs of $4.1 million resulting mainly from a reduction in the net periodic benefit cost for pensions, lower facility costs of $1.8 million resulting mainly from lower utility and repair and maintenance costs, and lower salaries and wages of $1.2 million in the first quarter of 2016 compared to the first quarter of 2015. On a per ton basis, first quarter of 2016 operating expenses decreased to $229 per ton from $244 per ton in the first quarter of 2015.
Operating profit. For the first quarter of 2016, the Company reported an operating profit of $38.3 million, or $80 per ton, compared to an operating profit of $33.6 million, or $71 per ton, for the first quarter of 2015, as a result of the factors discussed above.
Other expenses. Interest and other expense on debt decreased to $22.0 million in the first quarter of 2016 from $25.3 million in the first quarter of 2015, primarily due to a lower principal amount outstanding of our 11.25% Senior Notes due 2018 (the “2018 Notes”) and our 9% Senior Notes due 2017 (the “2017 Notes” and together with the 2018 Notes, the “2017 and 2018 Notes”) after the redemption of $30.1 million of the 2017 Notes and $30.1 million of the 2018 Notes in 2015, as well as the redemption of $25.1 million of the 2018 Notes in the first three months of 2016. Other income and (expense), net was income of $5.3 million in the first quarter of 2016 as compared to a charge of $11.3 million in the same period a year ago. The first quarter of 2016 included an $8.2 million gain on the early redemption of $25.1 million of principal amount of our 2018 Notes, which was partially offset by $2.9 million of foreign exchange losses related to our foreign operations. The other expense in the first quarter of 2015 is primarily related to a $12.3 million charge due to an other-than-temporary impairment charge recognized on an available-for-sale investment. Other expense in the first quarter of 2015 also included a $0.5 million loss on the early redemption of $16.8 million of principal amount of our 2017 Notes and $13.0 million of principal amount of our 2018 Notes. These expenses in the first quarter of 2015 were partially offset by $1.6 million of foreign exchange gains related to our foreign operations.
Provision for income taxes. In the first quarter of 2016, the Company recorded income tax expense of $8.1 million compared to an income tax benefit of $0.2 million in the first quarter of 2015. The $8.1 million income tax expense in the first quarter of 2016 primarily represents taxes at local statutory rates where the Company operates, but generally excludes any tax benefit for losses in jurisdictions with historical losses. The $0.2 million income tax benefit in the first quarter of 2015 primarily represents taxes at local statutory rates where the Company operates, but generally excludes any tax benefit for losses in jurisdictions with historical losses, and the discrete tax effect of the other-than-temporary impairment charge recorded during the quarter.
Earnings per share. Basic and diluted earnings per share was $0.42 in the first quarter of 2016 compared to loss per share of $0.08 in the first quarter of 2015. The changes in earnings per share are due to the results of operations discussed above.
Liquidity and Capital Resources
The Company’s primary sources of liquidity are cash and cash equivalents, cash flows from operations and borrowing availability under the $1.0 billion revolving credit facility (the “Ryerson Credit Facility”) that matures on the earlier of (a) July 24, 2020 or (b) 60 days prior to the stated maturity of any outstanding indebtedness with a principal amount of $50,000,000 or more. Its principal source of operating cash is from the sale of metals and other materials. Its principal uses of cash are for payments associated with the procurement and processing of metals and other materials inventories, costs incurred for the warehousing and delivery of inventories and the selling and administrative costs of the business, capital expenditures, and for interest payments on debt.
The following table summarizes the Company’s cash flows:
| Three Months Ended March 31, |
| 2016 | 2015 |
| (In millions) |
| Net cash provided by operating activities | $ | 47.0 | $ | 101.6 |
| Net cash used in investing activities | (5.1 | ) | (5.6 | ) |
| Net cash used in financing activities | (37.3 | ) | (82.7 | ) |
| Effect of exchange rates on cash and cash equivalents | 2.7 | (2.5 | ) |
| Net increase in cash and cash equivalents | $ | 7.3 | $ | 10.8 |

28
The Company had cash and cash equivalents of $70.5 million at March 31, 2016, compared to $63.2 million at December 31, 2015. The Company had $27 million and zero of qualified cash pledged as collateral at March 31, 2016 and December 31, 2015, respectively. The Company had $977 million and $1,024 million of total debt outstanding at March 31, 2016 and December 31, 2015, respectively, and a debt-to-capitalization ratio of 114% at March 31, 2016 and 116% at December 31, 2015. The Company had total liquidity (defined as cash and cash equivalents, marketable securities and availability under the Ryerson Credit Facility and foreign debt facilities, less qualified cash pledged as collateral) of $313 million at March 31, 2016 versus $273 million at December 31, 2015. Total liquidity is not a U.S. generally accepted accounting principles (“GAAP”) financial measure. We believe that total liquidity provides additional information for measuring our ability to fund our operations. Total liquidity does not represent, and should not be used as a substitute for, net income or cash flows from operations as determined in accordance with generally accepted accounting principles and total liquidity is not necessarily an indication of whether cash flow will be sufficient to fund our cash requirements.
Below is a reconciliation of cash and cash equivalents to total liquidity:
| March 31, 2016 | December 31, 2015 |
| (In millions) |
| Cash and cash equivalents | $ | 71 | $ | 63 |
| Less: Qualified cash pledged as collateral | (27 | ) | — |
| Marketable securities | 4 | 2 |
| Availability under Ryerson Credit Facility and foreign debt facilities | 265 | 208 |
| Total liquidity | $ | 313 | $ | 273 |

Of the total cash and cash equivalents, as of March 31, 2016, $63.8 million was held in subsidiaries outside the United States which is deemed to be permanently reinvested. Ryerson does not currently foresee a need to repatriate funds from its non-U.S. subsidiaries. Although Ryerson has historically satisfied needs for more capital in the U.S. through debt or equity issuances, Ryerson could elect to repatriate funds held in foreign jurisdictions, which could result in higher effective tax rates. The Company has not recorded a deferred tax liability for the effect of a possible repatriation of these assets as management intends to permanently reinvest these assets outside of the U.S. Specific plans for reinvestment include funding for future international acquisitions and funding of existing international operations.
Net cash provided by operating activities of $47.0 million in the first three months of 2016 was primarily due to an increase in accounts payable of $54.6 million resulting from a higher level of material purchases at the end of the first quarter of 2016 compared to year-end 2015, an increase in accrued liabilities of $16.9 million, net income of $13.5 million and non-cash depreciation and amortization expense of $10.9 million. Partially offsetting the cash inflows were an increase in accounts receivable of $36.0 million resulting from higher sales levels in the first three months of 2016 compared to year-end 2015 and an increase of $12.6 million in inventory. Net cash provided by operating activities of $101.6 million in the first three months of 2015 was primarily due to a decrease in inventory of $70.8 million as we reduced inventory as metal prices weakened during the period. In addition, accounts payable increased $31.9 million resulting from a higher level of material purchases at the end of the first quarter of 2015 compared to year-end 2014 and non-cash depreciation and amortization expense was $11.1 million. Partially offsetting the cash inflows were pension contributions of $11.0 million.
Capital expenditures during the first three months of 2016 totaled $5.4 million compared to $5.7 million in the first three months of 2015. The Company sold property, plant and equipment and assets held for sale generating cash proceeds of $1.2 million and $0.1 million during the first three months of 2016 and 2015, respectively.
Net cash used in financing activities in the first three months of 2016 was $37.3 million compared to net cash used in financing activities of $82.7 million in the first three months of 2015. Net cash used in financing activities in the first three months of 2016 was primarily related to the early redemption of $25.1 million principal amount of the 2018 Notes repurchased for $16.9 million and $23.5 million of repayments of credit facility borrowings with cash provided by operations discussed above, partially offset by an increase in book overdrafts of $4.4 million. Net cash used in financing activities in the first three months of 2015 was primarily related to the early redemption of $16.8 million principal amount of the 2017 Notes repurchased for $17.0 million and the early redemption of $13.0 million principal amount of the 2018 Notes repurchased for $13.3 million, $26.9 million of repayments of credit facility borrowings with cash provided by operations discussed above, and a decrease in book overdrafts of $25.1 million.
We believe that cash flow from operations and proceeds from the Ryerson Credit Facility will provide sufficient funds to meet our contractual obligations and operating requirements in the normal course of business.
29
Total Debt
As a result of net cash provided by operating activities, total debt in the Condensed Consolidated Balance Sheets decreased to $976.6 million at March 31, 2016 from $1,023.5 million at December 31, 2015.
Total debt outstanding as of March 31, 2016 consisted of the following amounts: $249.9 million borrowing under the Ryerson Credit Facility, $569.9 million under the 2017 Notes, $145.3 million under the 2018 Notes, and $20.8 million of foreign debt, less $9.3 million of unamortized debt issuance costs. Discussion of each of these borrowings follows.
Ryerson Credit Facility
On July 24, 2015, Ryerson terminated its $1.35 billion revolving credit facility agreement (the “Old Credit Facility”) and entered into the Ryerson Credit Facility. Borrowings under the Ryerson Credit Facility were used to repay indebtedness under the Old Credit Facility. The Ryerson Credit Facility has a maturity date of the earlier of (a) July 24, 2020 or (b) 60 days prior to the stated maturity of any outstanding indebtedness with a principal amount of $50,000,000 or more. As a result of the Ryerson Credit Facility, the Company recorded a $2.9 million charge in the third quarter of 2015 to write-off a portion of the issuance costs associated with the Old Credit Facility.
At March 31, 2016, Ryerson had $249.9 million of outstanding borrowings, $16 million of letters of credit issued and $240 million available under the Ryerson Credit Facility compared to $272.2 million of outstanding borrowings, $17 million of letters of credit issued and $185 million available at December 31, 2015. 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, a Canadian guarantor) 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 aggregate value of all inventory owned by a borrower (and in the case of Canadian accounts, a Canadian guarantor), with such inventory adjusted to exclude various ineligible inventory, including, among other things, (i) any inventory that is classified as “supplies” or is unsaleable in the ordinary course of business, (ii) 50% of the value of any inventory that (A) has not been sold or processed within a 180 day period and (B) which is calculated to have more than 365 days of supply based upon the immediately preceding 6 months consumption, and (iii) 50% of the value of inventory classified as partial inventory pieces on the basis that the inventory has been cut below sales lengths customary for such inventory. Qualified cash consists of cash in an eligible deposit account that is subject to customary restrictions and liens in favor of the lenders. The weighted average interest rate on the borrowings under the Ryerson Credit Facility was 2.5 percent and 2.1 percent at March 31, 2016 and December 31, 2015, respectively.
The total $1.0 billion Ryerson Credit Facility has an allocation of $925 million to the Company’s subsidiaries in the United States and an allocation of $75 million to Ryerson Holding’s Canadian subsidiary that is a borrower. Amounts outstanding under the Ryerson Credit Facility bear interest at (i) a rate determined by reference to (A) the base rate (the highest of the Federal Funds Rate plus 0.50%, Bank of America, N.A.’s prime rate and the one-month LIBOR rate plus 1.00%) or (B) a LIBOR rate or, (ii) for Ryerson Holding’s Canadian subsidiary that is a borrower, (A) a rate determined by reference to the Canadian base rate (the greatest of the Federal Funds Rate plus 0.50%, Bank of America-Canada Branch’s “base rate” for pricing loans in U.S. Dollars made at its “base rate” and the 30 day LIBOR rate plus 1.00%), (B) the prime rate (the greatest of the Bank of Canada overnight rate plus 0.50%, Bank of America-Canada Branch’s “prime rate” for commercial loans made by it in Canada in Canadian Dollars and the one-month Canadian bankers’ acceptance rate plus 1.00%) or (C) the bankers’ acceptance rate. The spread over the base rate and prime rate is between 0.25% and 0.75% and the spread over the LIBOR and for the bankers’ acceptances is between 1.25% and 1.75%, depending on the amount available to be borrowed under the Ryerson Credit Facility. Overdue amounts and all amounts owed during the existence of a default bear interest at 2% above the rate otherwise applicable thereto. Ryerson also pays commitment fees on amounts not borrowed at a rate of 0.25%.
Borrowings under the Ryerson Credit Facility are secured by first-priority liens on all of the inventory, accounts receivables, lockbox accounts and related assets of the borrowers and the guarantors.
The Ryerson Credit Facility also contains covenants that, among other things, restrict Ryerson and its restricted subsidiaries with respect to the incurrence of debt, the creation of liens, transactions with affiliates, mergers and consolidations, sales of assets and acquisitions. The Ryerson Credit Facility also requires that, if availability under the Ryerson Credit Facility declines to a certain level,
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Ryerson maintain a minimum fixed charge coverage ratio as of the end of each fiscal quarter, and includes defaults upon (among other things) the occurrence of a change of control of Ryerson and a cross-default to other financing arrangements.
The Ryerson Credit Facility contains events of default with respect to, among other things, default in the payment of principal when due or the payment of interest, fees and other amounts due thereunder after a specified grace period, material misrepresentations, failure to perform certain specified covenants, certain bankruptcy events, the invalidity of certain security agreements or guarantees, material judgments and the occurrence of a change of control of Ryerson. If such an event of default occurs, the lenders under the Ryerson Credit Facility will be entitled to various remedies, including acceleration of amounts outstanding under the Ryerson Credit Facility and all other actions permitted to be taken by secured creditors.
The lenders under the Ryerson Credit Facility have the ability to reject a borrowing request if any event, circumstance or development has occurred that has had or could reasonably be expected to have a material adverse effect on the Company. If Ryerson Holding, JT Ryerson, any of the other borrowers or any restricted subsidiaries of JT Ryerson becomes insolvent or commences bankruptcy proceedings, all amounts borrowed under the Ryerson Credit Facility will become immediately due and payable.
Proceeds from borrowings under the Ryerson Credit Facility and repayments of borrowings thereunder that are reflected in the Condensed Consolidated Statements of Cash Flows represent borrowings under the Company’s revolving credit agreement with original maturities greater than three months. Net proceeds (repayments) under the Ryerson Credit Facility represent borrowings under the Ryerson Credit Facility with original maturities less than three months.
2017 and 2018 Notes
On October 10, 2012, JT Ryerson issued $600 million in aggregate principal amount of the 2017 Notes and $300 million in aggregate principal amount of the 2018 Notes. The 2017 Notes bear interest at a rate of 9% per annum. The 2018 Notes bear interest at a rate of 11.25% per annum. The 2017 Notes are fully and unconditionally guaranteed on a senior secured basis and the 2018 Notes are fully and unconditionally guaranteed on a senior unsecured basis by all of our existing and future domestic subsidiaries that are co-borrowers or that have guarantee obligations under the Ryerson Credit Facility.
The 2017 Notes and related guarantees are secured by a first-priority lien on substantially all of our and our guarantors’ present and future assets located in the United States (other than receivables, inventory, related general intangibles, certain other assets and proceeds thereof), subject to certain exceptions and customary permitted liens. The 2017 Notes and related guarantees are secured on a second-priority basis by a lien on the assets that secure our obligations under the Ryerson Credit Facility. The 2018 Notes are not secured. The 2017 and 2018 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 future net income, once prior losses are offset.
The 2017 Notes became redeemable by the Company, in whole or in part on April 15, 2015 and the 2018 Notes became redeemable, in whole or in part, on October 15, 2015, in each case at specified redemption prices. If a change of control occurs, JT Ryerson must offer to purchase the 2017 and 2018 Notes at 101% of their principal amount, plus accrued and unpaid interest.
As of March 31, 2016, $569.9 million and $145.3 million of the original outstanding principal amount of the 2017 and 2018 Notes remain outstanding, respectively. The Company has repurchased and in the future may repurchase 2017 and 2018 Notes in the open market. During the first three months of 2016, a principal amount of $25.1 million of the 2018 Notes were repurchased for $16.9 million and retired, resulting in the recognition of a $8.2 million gain within other income and (expense), net on the Condensed Consolidated Statement of Comprehensive Income. During the first three months of 2015, a principal amount of $16.8 million of the 2017 Notes were repurchased for $17.0 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. During the first three months of 2015, a principal amount of $13.0 million of the 2018 Notes were repurchased for $13.3 million and retired, resulting in the recognition of a $0.3 million loss within other income and (expense), net on the Condensed Consolidated Statement of Comprehensive Income.
Foreign Debt
At March 31, 2016, Ryerson China’s total foreign borrowings were $20.6 million, which were owed to banks in Asia at a weighted average interest rate of 4.4% per annum and secured by inventory and property, plant and equipment. At December 31, 2015, Ryerson China’s total foreign borrowings were $21.8 million, which were owed to banks in Asia at a weighted average interest
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rate of 4.3% per annum and secured by inventory and property, plant and equipment. Açofran’s total foreign borrowings were $0.2 million at March 31, 2016 and December 31, 2015.
Availability under the foreign credit lines was $25 million and $23 million at March 31, 2016 and December 31, 2015, respectively. Letters of credit issued by our foreign subsidiaries totaled $1 million and $2 million at March 31, 2016 and December 31, 2015, respectively.
Pension Funding
At December 31, 2015, pension liabilities exceeded plan assets by $238 million. The Company anticipates that it will have a minimum required pension contribution of approximately $22 million in 2016 under the Employee Retirement Income Security Act of 1974 (“ERISA”) and Pension Protection Act in the U.S and the Ontario Pension Benefits Act in Canada. Through the three months ended March 31, 2016, the Company has made $2 million in pension contributions, and anticipates an additional $20 million of contributions in the remaining nine months of 2016. Future contribution requirements depend on the investment returns on plan assets, the impact of discount rates on pension liabilities, and changes in regulatory requirements. The Company is unable to determine the amount or timing of any such contributions required by ERISA or whether any such contributions would have a material adverse effect on the Company’s financial position or cash flows. The Company believes that cash flow from operations and the Ryerson Credit Facility described above will provide sufficient funds to make the minimum required contribution in 2016.
Contractual Obligations
The following table presents contractual obligations at March 31, 2016:
| Payments Due by Period |
| Contractual Obligations (1) (2) | Total | Less than 1 year | 1 – 3 years | 4 – 5 years | After 5 years |
| (In millions) |
| 2017 Notes | $ | 570 | $ | — | $ | 570 | $ | — | $ | — |
| 2018 Notes | 145 | — | 145 | — | — |
| Ryerson Credit Facility | 250 | — | 250 | — | — |
| Foreign Debt | 21 | 21 | — | — | — |
| Interest on 2017 Notes, 2018 Notes,   Foreign Debt and Ryerson Credit Facility (3) | 130 | 74 | 56 | — | — |
| Purchase Obligations (4) | 24 | 24 | — | — | — |
| Operating Leases | 101 | 26 | 36 | 22 | 17 |
| Pension Withdrawal Liability | 1 | — | — | — | 1 |
| Capital Lease Obligations | 14 | 5 | 6 | 3 | — |
| Total | $ | 1,256 | $ | 150 | $ | 1,063 | $ | 25 | $ | 18 |

| (1) | The contractual obligations disclosed above do not include the Company’s potential future pension funding obligations (see discussion under “Pension Funding” caption). |

| (2) | Due to uncertainty regarding the completion of tax audits and possible outcomes, we do not know the timing of when our obligations related to unrecognized tax benefits will occur, if at all. |

| (3) | Interest payments related to the variable rate debt were estimated using the weighted average interest rate for the Ryerson Credit Facility. |

| (4) | The purchase obligations with suppliers are entered into when we receive firm sales commitments with certain of our customers. |

Income Taxes
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 and consistent with its past determinations, the Company determines that these deferred tax assets are more likely than not realizable.
The Company anticipates that certain statutes of limitation will close within the next twelve months resulting in the reduction of its reserve for uncertain tax benefits related to various intercompany transactions, with a corresponding income tax benefit of less than $1 million.
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Recent legislative proposals in the U.S. would repeal the use of the last-in-first-out method of accounting (“LIFO method”) for inventory for U.S. tax purposes. If legislation repealing the use of the LIFO method for tax purposes becomes law, we would expect an increase in the cash taxes the Company will need to pay over a 10 year period.
Item 4.
Controls and Procedures
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Part II. Other Information:
Item 1.
Legal Proceedings
From time to time, we are named as a defendant in legal actions incidental to our ordinary course of business. We do not believe that the resolution of these claims will have a material adverse effect on our 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.
For additional information concerning legal proceedings, see Note 8, “Commitments and Contingencies” of the Notes to Condensed Consolidated Financial Statements in this Quarterly Report on Form 10-Q.
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
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Item 3.
Defaults Upon Senior Securities
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Item 4.
Mine Safety Disclosures
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Item 5.
Other Information
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Item 6.
Exhibits
| Exhibit No. | Description |
| 31.1 | Certificate of the Principal Executive Officer of the Company, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 31.2 | Certificate of the Principal Financial Officer of the Company, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
| 32.1 | Written Statement of Edward J. Lehner, President and Chief Executive Officer of the Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| 32.2 | Written Statement of Erich S. Schnaufer, Chief Financial Officer of the Company pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
| 101.INS | XBRL Instance Document |
| 101.SCH | XBRL Taxonomy Extension Schema Document |

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| Exhibit No. | Description |
| 101.DEF | XBRL Taxonomy Extension Definition Linkbase Document |
| 101.CAL | XBRL Taxonomy Calculation Linkbase Document |
| 101.LAB | XBRL Taxonomy Label Linkbase Document |
| 101.PRE | XBRL Taxonomy Presentation Linkbase Document |

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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| RYERSON HOLDING CORPORATION |
| By: | /s/ ERICH S. SCHNAUFER |
| Erich S. Schnaufer Chief Financial Officer (duly authorized signatory and principal financial officer of the registrant) |

Date: May 5, 2016
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Question: What is the change in the ratio of total assets to total liabilities from 2015 to 2014 for Joseph T. Ryerson and Guarantor divisions combined, in percentage?

Python solution:
def solution():
     #Define variables name and value
    total_assets_2014 = 1719.2 + 853.4
    total_liabilities_2014 = 1867.9 + 177.6
    total_assets_2015 = 1666.8 + 807.7
    total_liabilities_2015 = 1837.7 + 134.2

    #Do math calculation to get the answer
    ratio_2014 = total_assets_2014 / total_liabilities_2014
    ratio_2015 = total_assets_2015 / total_liabilities_2015
    answer = ((ratio_2015 - ratio_2014) / ratio_2014) * 100
    return answer


Answer: -0.2231498318