SEC Filings

10-Q
RELIANCE STEEL & ALUMINUM CO filed this Form 10-Q on 05/02/2019
Entire Document
 

Supplemental cash flow and balance sheet information is presented below:

 

 

 

 

 

 

March 31,

 

2019

 

(in millions)

Supplemental cash flow information:

 

 

Operating cash flows from operating leases (three months ended)

$

(20.2)

Right-of-use assets obtained in exchange for lease obligations  (three months ended)                    

$

11.7

 

 

 

Other lease information:

 

 

Weighted average remaining lease term—operating leases

 

5.8 years

Weighted average discount rate—operating leases

 

4.6%

 

Maturities of operating lease liabilities are as follows:

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

2019

    

2018

 

(in millions)

2019

$

45.3

 

$

59.5

2020

 

48.8

 

 

45.5

2021

 

36.3

 

 

32.9

2022

 

25.2

 

 

22.7

2023

 

18.2

 

 

16.2

Thereafter

 

45.0

 

 

40.7

Total lease payments

 

218.8

 

 

217.5

Less: imputed interest

 

(32.4)

 

 

 —

Total

$

186.4

 

$

217.5

 

 

Note 8.  Income Taxes

 

Our effective income tax rates for the first quarters of 2019 and 2018 were 25.0% and 24.0%, respectively. The differences between our effective income tax rates and the U.S. federal statutory rate of 21% were mainly due to state income taxes offset by the effects of company-owned life insurance policies.

 

Note 9.  Equity

 

Dividends

 

On April 23, 2019, our Board of Directors declared the 2019 second quarter cash dividend of $0.55 per share. The dividend is payable on June 14, 2019 to stockholders of record as of May 24, 2019.

 

During the first quarters of 2019 and 2018, we declared and paid quarterly dividends of $0.55 and $0.50 per share, or $37.0 million and $36.5 million in total, respectively. In addition, we paid $2.6 million and $2.0 million in dividend equivalents with respect to vested restricted stock units (“RSUs”) during the first quarters of 2019 and 2018, respectively.

 

Stock-Based Compensation

 

We make annual grants of long-term incentive awards to officers and key employees in the forms of service-based and performance-based RSUs that generally have approximately 3-year vesting periods. The performance-based RSU awards are subject to both service and performance goal criteria. We also make annual grants of stock to the non-employee members of the Board of Directors that include dividend rights and vest immediately upon grant. The fair value of the RSUs and stock grants is determined based on the closing stock price of our common stock on the grant date.

10