18. Condensed Consolidating Financial Information

In June 2012, Holdings (presented as “Parent” in the following tables), through its wholly-owned principal operating subsidiary, GBC (presented as “Issuer” in the following tables), issued Senior Secured Notes as further described in note 8, “Financing”. The Senior Secured Notes are jointly and severally guaranteed on a senior secured basis by Holdings and substantially all existing 100%-owned U.S. subsidiaries of GBC and any future restricted subsidiaries (which are set forth in

more detail in the Indenture) who guarantee or incur certain types of Permitted Debt under the Indenture (collectively, the “Guarantors”). The guarantees are full and unconditional, except that a Guarantor can be automatically released and relieved of its obligations under certain customary provisions contained in the Indenture. Under these customary provisions, a Guarantor is automatically released from its obligations as a guarantor upon the sale of the Guarantor or substantially all of its assets to a third party, the designation of the Guarantor as an unrestricted subsidiary in accordance with the terms of the Indenture, the release or discharge of all guarantees by such Guarantor and the repayment of all indebtedness, or upon the Issuer’s exercise of its legal defeasance option or covenant defeasance option or if the obligations under the Indenture are discharged in accordance with the terms of the Indenture. All other subsidiaries of GBC, whether direct or indirect, do not guarantee the Senior Secured Notes (collectively, the “Non-Guarantors”).

Holdings is also a guarantor of the ABL Facility and substantially all of its 100%-owned U.S. subsidiaries are borrowers under, or guarantors of, the ABL Facility on a senior secured basis.

The following condensed consolidating financial information presents the financial position, results of operations, comprehensive income and cash flows of (1) the Parent, (2) the Issuer, (3) the Guarantors, (4) the Non-Guarantors and (5) eliminations to arrive at the information for the Company on a consolidated basis. The condensed consolidating financial information presented below is not necessarily indicative of the financial position, results of operations, comprehensive income or cash flows of the Parent, the Issuer, the Guarantors or the Non-Guarantors on a stand-alone basis.


	Condensed Consolidating Balance Sheet
	As of June 30, 2013
	Parent			Issuer			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets:
Cash	$	—		$	34,457		$	—	$	4,207	$	(4,654	)	$	34,010
Accounts receivable, net of allowance		—			4,815			182,082		16,443		—			203,340
Inventories		—			—			181,937		17,902		(290	)		199,549
Prepaid expenses and other current assets		—			10,030			14,925		195		(58	)		25,092
Deferred income taxes		—			31,760			—		—		—			31,760
Income tax receivable		—			2,147			—		—		—			2,147

Total current assets		—			83,209			378,944		38,747		(5,002	)		495,898
Property, plant and equipment, net		—			985			73,999		346		—			75,330
Investment in joint venture		—			—			2,168		—		—			2,168
Investment in subsidiaries		—			591,583			19,336		—		(610,919	)		—
Intercompany accounts		—			—			253,943		—		(253,943	)		—
Goodwill		—			—			4,399		—		—			4,399
Intangible assets, net		—			—			787		—		—			787
Deferred income taxes		—			6,826			—		—		—			6,826
Other noncurrent assets		—			15,878			916		—		—			16,794

Total assets	$	—		$	698,481		$	734,492	$	39,093	$	(869,864	)	$	602,202

Liabilities and (deficit) / equity
Current liabilities:
Accounts payable	$	—		$	290		$	108,410	$	3,283	$	(5,002	)	$	106,981
Accrued liabilities		—			17,494			34,455		736		—			52,685
Accrued interest		—			3,395			—		—		—			3,395
Income taxes payable		—			39			44		251		—			334

Total current liabilities		—			21,218			142,909		4,270		(5,002	)		163,395
Long-term debt		—			431,000			—		—		—			431,000
Other noncurrent liabilities		—			27,678			—		—		—			27,678
Obligations and advances in excess of investment in subsidiary		16,502			—			—		—		(16,502	)		—
Intercompany accounts		7,145			235,087			—		11,711		(253,943	)		—

Total liabilities		23,647			714,983			142,909		15,981		(275,447	)		622,073

Commitments and contingencies		—			—			—		—		—			—
Global Brass and Copper Holdings, Inc. stockholder’s (deficit) / equity		(23,647	)		(16,502	)		591,583		19,336		(594,417	)		(23,647	)
Noncontrolling interest		—			—			—		3,776		—			3,776

Total (deficit) / equity		(23,647	)		(16,502	)		591,583		23,112		(594,417	)		(19,871	)

Total liabilities and (deficit) / equity	$	—		$	698,481		$	734,492	$	39,093	$	(869,864	)	$	602,202


	Condensed Consolidating Balance Sheet
	As of December 31, 2012
	Parent			Issuer			Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets:
Cash	$	—		$	8,537		$	—	$	5,446	$	(121	)	$	13,862
Accounts receivable, net of allowance		—			4,630			144,533		15,154		—			164,317
Inventories		—			343			158,713		15,885		(563	)		174,378
Prepaid expenses and other current assets		—			9,229			2,600		312		—			12,141
Deferred income taxes		—			33,465			—		—		—			33,465
Income tax receivable, net		—			1,656			—		—		(356	)		1,300

Total current assets		—			57,860			305,846		36,797		(1,040	)		399,463
Property, plant and equipment, net		—			1,154			69,646		327		—			71,127
Investment in joint venture		—			—			2,972		—		—			2,972
Investment in subsidiaries		—			522,912			19,850		—		(542,762	)		—
Intercompany accounts		—			—			223,081		—		(223,081	)		—
Goodwill		—			—			4,399		—		—			4,399
Intangible assets, net		—			—			839		—		—			839
Deferred income taxes		—			6,138			—		—		—			6,138
Other noncurrent assets		—			17,115			640		—		—			17,755

Total assets	$	—		$	605,179		$	627,273	$	37,124	$	(766,883	)	$	502,693

Liabilities and (deficit) / equity
Current liabilities:
Accounts payable	$	—		$	1,398		$	77,390	$	2,910	$	(121	)	$	81,577
Accrued liabilities		—			20,592			26,971		861		—			48,424
Accrued interest		—			3,287			—		—		—			3,287
Income taxes payable		—			248			—		356		(356	)		248

Total current liabilities		—			25,525			104,361		4,127		(477	)		133,536
Long-term debt		—			389,522			—		—		—			389,522
Other noncurrent liabilities		—			27,436			—		—		—			27,436
Obligations and advances in excess of investment in subsidiary		42,522			—			—		—		(42,522	)		—
Intercompany accounts		8,829			205,218			—		9,597		(223,644	)		—

Total liabilities		51,351			647,701			104,361		13,724		(266,643	)		550,494

Commitments and contingencies		—			—			—		—		—			—
Global Brass and Copper Holdings, Inc. stockholder’s (deficit) / equity		(51,351	)		(42,522	)		522,912		19,850		(500,240	)		(51,351	)
Noncontrolling interest		—			—			—		3,550		—			3,550

Total (deficit) / equity		(51,351	)		(42,522	)		522,912		23,400		(500,240	)		(47,801	)

Total liabilities and (deficit) / equity	$	—		$	605,179		$	627,273	$	37,124	$	(766,883	)	$	502,693


	Condensed Consolidating Statement of Operations
	Three Months Ended June 30, 2013
	Parent			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Net sales	$	—		$	—		$	444,057		$	25,522	$	(8,101	)	$	461,478
Cost of sales		—			(415	)		394,201			24,093		(8,101	)		409,778

Gross profit		—			415			49,856			1,429		—			51,700
Selling, general and administrative expenses		4,802			24,512			22,840			701		—			52,855

Operating income (loss)		(4,802	)		(24,097	)		27,016			728		—			(1,155	)
Interest expense		—			9,959			—			—		—			9,959
Other (income) expense, net		—			97			(213	)		120		—			4

Income (loss) before provision for (benefit from) income taxes and equity income (loss)		(4,802	)		(34,153	)		27,229			608		—			(11,118	)
Provision for (benefit from) income taxes		(1,848	)		(4,553	)		12,446			416		—			6,461

Income (loss) before equity income (loss)		(2,954	)		(29,600	)		14,783			192		—			(17,579	)
Equity income (loss), net of tax		(14,178	)		15,422			639			—		(1,375	)		508

Net income (loss)		(17,132	)		(14,178	)		15,422			192		(1,375	)		(17,071	)
Less: Net income attributable to noncontrolling interest		—			—			—			61		—			61

Net income (loss) attributable to Global Brass and Copper Holdings, Inc.	$	(17,132	)	$	(14,178	)	$	15,422		$	131	$	(1,375	)	$	(17,132	)


	Condensed Consolidating Statement of Operations
	Three Months Ended June 30, 2012
	Parent			Issuer			Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	—		$	397,588	$	24,807		$	(5,416	)	$	416,979
Cost of sales		—			654			352,200		22,420			(5,416	)		369,858

Gross profit (loss)		—			(654	)		45,388		2,387			—			47,121
Selling, general and administrative expenses		440			17,459			19,389		677			—			37,965

Operating income (loss)		(440	)		(18,113	)		25,999		1,710			—			9,156
Interest expense		—			10,209			—		—			—			10,209
Loss on extinguishment of debt		—			19,612			—		—			—			19,612
Other (income) expense, net		—			530			67		(199	)		—			398

Income (loss) before provision for (benefit from) income taxes and equity income (loss)		(440	)		(48,464	)		25,932		1,909			—			(21,063	)
Provision for (benefit from) income taxes		(169	)		(14,784	)		14,300		(318	)		—			(971	)

Income (loss) before equity income (loss)		(271	)		(33,680	)		11,632		2,227			—			(20,092	)
Equity income (loss), net of tax		(19,734	)		13,946			2,314		—			3,675			201

Net income (loss)		(20,005	)		(19,734	)		13,946		2,227			3,675			(19,891	)
Less: Net income attributable to noncontrolling interest		—			—			—		114			—			114

Net income (loss) attributable to Global Brass and Copper Holdings, Inc.	$	(20,005	)	$	(19,734	)	$	13,946	$	2,113		$	3,675		$	(20,005	)


	Condensed Consolidating Statement of Operations
	Six Months Ended June 30, 2013
	Parent			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Net sales	$	—		$	—		$	872,130		$	48,498	$	(14,188	)	$	906,440
Cost of sales		—			116			777,054			44,842		(14,188	)		807,824

Gross profit		—			(116	)		95,076			3,656		—			98,616
Selling, general and administrative expenses		5,188			28,856			37,056			1,433		—			72,533

Operating income (loss)		(5,188	)		(28,972	)		58,020			2,223		—			26,083
Interest expense		—			19,834			—			—		—			19,834
Other (income) expense, net		—			187			(83	)		87		—			191

Income (loss) before provision for (benefit from) income taxes and equity income (loss)		(5,188	)		(48,993	)		58,103			2,136		—			6,058
Provision for (benefit from) income taxes		(1,997	)		(9,953	)		23,690			763		—			12,503

Income (loss) before equity income (loss)		(3,191	)		(39,040	)		34,413			1,373		—			(6,445	)
Equity income (loss), net of tax		(2,553	)		36,487			2,074			—		(35,148	)		860

Net income (loss)		(5,744	)		(2,553	)		36,487			1,373		(35,148	)		(5,585	)
Less: Net income attributable to noncontrolling interest		—			—			—			159		—			159

Net income (loss) attributable to Global Brass and Copper Holdings, Inc.	$	(5,744	)	$	(2,553	)	$	36,487		$	1,214	$	(35,148	)	$	(5,744	)


	Condensed Consolidating Statement of Operations
	Six Months Ended June 30, 2012
	Parent			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	—		$	829,135		$	44,619		$	(13,384	)	$	860,370
Cost of sales		—			(1,905	)		738,120			40,464			(13,384	)		763,295

Gross profit		—			1,905			91,015			4,155			—			97,075
Selling, general and administrative expenses		735			21,812			32,044			1,297			—			55,888

Operating income (loss)		(735	)		(19,907	)		58,971			2,858			—			41,187
Interest expense (income)		—			19,961			(3	)		—			—			19,958
Loss on extinguishment of debt		—			19,612			—			—			—			19,612
Other (income) expense, net		—			597			251			(139	)		—			709

Income (loss) before provision for (benefit from) income taxes and equity income (loss)		(735	)		(60,077	)		58,723			2,997			—			908
Provision for (benefit from) income taxes		(283	)		(19,161	)		26,662			9			—			7,227

Income (loss) before equity income (loss)		(452	)		(40,916	)		32,061			2,988			—			(6,319	)
Equity income (loss), net of tax		(5,560	)		35,356			3,295			—			(32,616	)		475

Net income (loss)		(6,012	)		(5,560	)		35,356			2,988			(32,616	)		(5,844	)
Less: Net income attributable to noncontrolling interest		—			—			—			168			—			168

Net income (loss) attributable to Global Brass and Copper Holdings, Inc.	$	(6,012	)	$	(5,560	)	$	35,356		$	2,820		$	(32,616	)	$	(6,012	)


	Condensed Consolidating Statement of Comprehensive Income (Loss)
	Three Months Ended June 30, 2013
	Parent			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income (loss)	$	(17,132	)	$	(14,178	)	$	15,422		$	192		$	(1,375	)	$	(17,071	)
Foreign currency translation adjustment, net of tax		(489	)		(489	)		(803	)		(177	)		1,518			(440	)

Comprehensive income (loss)		(17,621	)		(14,667	)		14,619			15			143			(17,511	)
Less: Comprehensive income attributable to noncontrolling interest		—			—			—			110			—			110

Comprehensive income (loss) attributable to Global Brass and Copper Holdings, Inc.	$	(17,621	)	$	(14,667	)	$	14,619		$	(95	)	$	143		$	(17,621	)


	Condensed Consolidating Statement of Comprehensive Income (Loss)
	Three Months Ended June 30, 2012
	Parent			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net income (loss)	$	(20,005	)	$	(19,734	)	$	13,946		$	2,227		$	3,675	$	(19,891	)
Foreign currency translation adjustment, net of tax		(148	)		(148	)		(227	)		(520	)		900		(143	)

Comprehensive income (loss)		(20,153	)		(19,882	)		13,719			1,707			4,575		(20,034	)
Less: Comprehensive income attributable to noncontrolling interest		—			—			—			119			—		119

Comprehensive income (loss) attributable to Global Brass and Copper Holdings, Inc.	$	(20,153	)	$	(19,882	)	$	13,719		$	1,588		$	4,575	$	(20,153	)


	Condensed Consolidating Statement of Comprehensive Income (Loss)
	Six Months Ended June 30, 2013
	Parent			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Net income (loss)	$	(5,744	)	$	(2,553	)	$	36,487		$	1,373	$	(35,148	)	$	(5,585	)
Foreign currency translation adjustment, net of tax		(879	)		(879	)		(1,462	)		209		2,199			(812	)

Comprehensive income (loss)		(6,623	)		(3,432	)		35,025			1,582		(32,949	)		(6,397	)
Less: Comprehensive income attributable to noncontrolling interest		—			—			—			226		—			226

Comprehensive income (loss) attributable to Global Brass and Copper Holdings, Inc.	$	(6,623	)	$	(3,432	)	$	35,025		$	1,356	$	(32,949	)	$	(6,623	)


	Condensed Consolidating Statement of Comprehensive Income (Loss)
	Six Months Ended June 30, 2012
	Parent			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Net income (loss)	$	(6,012	)	$	(5,560	)	$	35,356		$	2,988	$	(32,616	)	$	(5,844	)
Foreign currency translation adjustment, net of tax		(145	)		(145	)		(222	)		799		(410	)		(123	)

Comprehensive income (loss)		(6,157	)		(5,705	)		35,134			3,787		(33,026	)		(5,967	)
Less: Comprehensive income attributable to noncontrolling interest		—			—			—			190		—			190

Comprehensive income (loss) attributable to Global Brass and Copper Holdings, Inc.	$	(6,157	)	$	(5,705	)	$	35,134		$	3,597	$	(33,026	)	$	(6,157	)


	Condensed Consolidating Statement of Cash Flows
	Six Months Ended June 30, 2013
	Parent			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities
Net cash provided by (used in) operating activities	$	—		$	(15,558	)	$	8,103		$	935		$	(11,408	)	$	(17,928	)
Cash flows from investing activities
Capital expenditures		—			—			(8,268	)		(37	)		—			(8,305	)
Payable to subsidiaries		(4,875	)		—			—			—			4,875			—
Proceeds from sale of property, plant and equipment		—			—			165			4			—			169

Net cash provided by (used in) investing activities		(4,875	)		—			(8,103	)		(33	)		4,875			(8,136	)
Cash flows from financing activities
Borrowings on ABL Facility		—			229,787			—			—			—			229,787
Payments on ABL Facility		—			(188,309	)		—			—			—			(188,309	)
Distribution to stockholder		—			—			—			(2,000	)		2,000			—
Net payments (amounts due) from stockholder		4,875			—			—			—			—			4,875

Net cash provided by (used in) financing activities		4,875			41,478			—			(2,000	)		2,000			46,353
Effect of foreign currency exchange rate changes		—			—			—			(141	)		—			(141	)

Net increase (decrease) in cash		—			25,920			—			(1,239	)		(4,533	)		20,148
Cash at beginning of period		—			8,537			—			5,446			(121	)		13,862

Cash at end of period	$	—		$	34,457		$	—		$	4,207		$	(4,654	)	$	34,010


	Condensed Consolidating Statement of Cash Flows Six Months Ended June 30, 2012
	Parent			Issuer			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Cash flows from operating activities
Net cash provided by (used for) operating activities	$	73,624		$	25,672		$	6,649		$	(999	)	$	(74,609	)	$	30,337
Cash flows from investing activities
Capital expenditures		—			(549	)		(6,655	)		(18	)		—			(7,222	)
Capital distributions from subsidiary		86,376			—			—						(86,376	)		—
Payable to subsidiaries		2,161			—			—			—			(2,161	)		—
Proceeds from sale of property, plant and equipment		—			—			6			—			—			6

Net cash provided by (used in) investing activities		88,537			(549	)		(6,649	)		(18	)		(88,537	)		(7,216	)
Cash flows from financing activities
Deferred financing fees		—			(12,926	)		—			—			—			(12,926	)
Proceeds from senior secured notes		—			375,000			—			—			—			375,000
Payments on term loan		—			(310,875	)		—			—			—			(310,875	)
Borrowings on ABL Facility		—			81,586			—			—			—			81,586
Payments on ABL Facility		—			(30,913	)		—			—			—			(30,913	)
Distribution to stockholder		(160,000	)		(160,000	)		—			—			160,000			(160,000	)
Amounts due from stockholder		(2,161	)		—			—			—			—			(2,161	)

Net cash used in financing activities		(162,161	)		(58,128	)		—			—			160,000			(60,289	)
Effect of foreign currency exchange rate changes		—			—			—			(207	)		—			(207	)

Net decrease in cash		—			(33,005	)		—			(1,224	)		(3,146	)		(37,375	)
Cash at beginning of period		—			45,302			—			4,648			(413	)		49,537

Cash at end of period	$	—		$	12,297		$	—		$	3,424		$	(3,559	)	$	12,162