Quarterly report pursuant to Section 13 or 15(d)

Basis of Presentation and Principles of Consolidation (Tables)

v3.10.0.1
Basis of Presentation and Principles of Consolidation (Tables)
6 Months Ended
Jun. 30, 2018
Accounting Policies [Abstract]  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles
The following tables summarize the effects of adopting ASC Topic 606 on our prior period unaudited Consolidated Financial Statements:
Consolidated Balance Sheet (Unaudited)
December 31, 2017
As Reported
 
Effects of the Adoption of ASC Topic 606
 
December 31, 2017
As Adjusted
(in millions, except share data)
Assets
 
 
 
 
 
Current assets:
 
 
 
 
 
Cash and cash equivalents
$
59.0

 
$

 
$
59.0

Accounts receivable (net of allowance of $1.0)
197.9

 
(0.1
)
 
197.8

Inventories
208.1

 

 
208.1

Prepaid expenses and other current assets
33.3

 
(21.6
)
 
11.7

Income tax receivable
3.6

 

 
3.6

Total current assets
501.9

 
(21.7
)
 
480.2

Property, plant and equipment, net
142.9

 

 
142.9

Goodwill
4.5

 

 
4.5

Intangible assets, net
2.0

 

 
2.0

Deferred income taxes
16.1

 

 
16.1

Other noncurrent assets
6.5

 

 
6.5

Total assets
$
673.9

 
$
(21.7
)
 
$
652.2

Liabilities and equity
 
 
 
 
 
Current liabilities:
 
 
 
 
 
Current portion of debt
$
5.0

 
$

 
$
5.0

Accounts payable
117.1

 

 
117.1

Accrued liabilities
57.9

 
(21.9
)
 
36.0

Accrued interest
0.2

 

 
0.2

Income tax payable
0.5

 

 
0.5

Total current liabilities
180.7

 
(21.9
)
 
158.8

Noncurrent portion of debt
309.0

 

 
309.0

Other noncurrent liabilities
37.1

 

 
37.1

Total liabilities
526.8

 
(21.9
)
 
504.9

Global Brass and Copper Holdings, Inc. stockholders’ equity:
 
 
 
 
 
Common stock - 22,133,764 shares issued
0.2

 

 
0.2

Additional paid-in capital
54.5

 

 
54.5

Retained earnings
97.1

 
0.2

 
97.3

Treasury stock - 226,576 shares
(6.6
)
 

 
(6.6
)
Accumulated other comprehensive loss
(2.9
)
 

 
(2.9
)
Total Global Brass and Copper Holdings, Inc. stockholders’ equity
142.3

 
0.2

 
142.5

Noncontrolling interest
4.8

 

 
4.8

Total equity
147.1

 
0.2

 
147.3

Total liabilities and equity
$
673.9

 
$
(21.7
)
 
$
652.2


Consolidated Statement of Operations (Unaudited)
Three Months Ended
June 30, 2017
As Reported
 
Effects of the Adoption of ASC Topic 606
 
Three Months Ended
June 30, 2017
As Adjusted
 
Six Months Ended
June 30, 2017
As Reported
 
Effects of the Adoption of ASC Topic 606
 
Six Months Ended
June 30, 2017
As Adjusted
(in millions, except per share data)
Net sales
$
377.4

 
$
(2.6
)
 
$
374.8

 
$
770.7

 
$
23.6

 
$
794.3

Cost of sales
(332.7
)
 
2.1

 
(330.6
)
 
(676.1
)
 
(23.4
)
 
(699.5
)
Gross profit
44.7

 
(0.5
)
 
44.2

 
94.6

 
0.2

 
94.8

Selling, general and administrative expenses
(19.3
)
 

 
(19.3
)
 
(42.2
)
 

 
(42.2
)
Operating income
25.4

 
(0.5
)
 
24.9

 
52.4

 
0.2

 
52.6

Interest expense
(4.8
)
 

 
(4.8
)
 
(9.5
)
 

 
(9.5
)
Other income (expense), net
4.5

 

 
4.5

 
4.2

 

 
4.2

Income before provision for income taxes
25.1

 
(0.5
)
 
24.6

 
47.1

 
0.2

 
47.3

Provision for income taxes
(8.9
)
 
0.1

 
(8.8
)
 
(13.7
)
 
(0.1
)
 
(13.8
)
Net income
16.2

 
(0.4
)
 
15.8

 
33.4

 
0.1

 
33.5

Net income attributable to noncontrolling interest
(0.1
)
 

 
(0.1
)
 
(0.3
)
 

 
(0.3
)
Net income attributable to Global Brass and Copper Holdings, Inc.
$
16.1

 
$
(0.4
)
 
$
15.7

 
$
33.1

 
$
0.1

 
$
33.2

Net income attributable to Global Brass and Copper Holdings, Inc. per common share:
 
 
 
 
 
 
 
 
 
 
 
Basic
$
0.74

 
$
(0.02
)
 
$
0.72

 
$
1.53

 
$
0.01

 
$
1.54

Diluted
$
0.73

 
$
(0.02
)
 
$
0.71

 
$
1.50

 
$

 
$
1.50

Weighted average common shares outstanding:
 
 
 
 
 
 
 
 
 
 
 
Basic
21.8

 

 
21.8

 
21.6

 

 
21.6

Diluted
22.1

 

 
22.1

 
22.1

 

 
22.1

Consolidated Statement of Comprehensive Income (Unaudited)
Three Months Ended
June 30, 2017
As Reported
 
Effects of the Adoption of ASC Topic 606
 
Three Months Ended
June 30, 2017
As Adjusted
 
Six Months Ended
June 30, 2017
As Reported
 
Effects of the Adoption of ASC Topic 606
 
Six Months Ended
June 30, 2017
As Adjusted
(in millions)
Net income
$
16.2

 
$
(0.4
)
 
$
15.8

 
$
33.4

 
$
0.1

 
$
33.5

Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
Foreign currency translation adjustment
0.5

 

 
0.5

 
1.3

 

 
1.3

Income tax (expense) benefit on foreign currency translation adjustment
(0.1
)
 

 
(0.1
)
 
(0.2
)
 

 
(0.2
)
Comprehensive income
16.6

 
(0.4
)
 
16.2

 
34.5

 
0.1

 
34.6

Comprehensive (income) loss attributable to noncontrolling interest
(0.2
)
 

 
(0.2
)
 
(0.4
)
 

 
(0.4
)
Comprehensive income attributable to Global Brass and Copper Holdings, Inc.
$
16.4

 
$
(0.4
)
 
$
16.0

 
$
34.1

 
$
0.1

 
$
34.2

Consolidated Statement of Changes in Equity (Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in millions, except share data)
Shares outstanding
 
Common
stock
 
Additional
paid-in
capital
 
Retained earnings
 
Treasury
stock
 
Accumulated
other
comprehensive
loss
 
Total
Global Brass
and Copper
Holdings, Inc.
stockholders’
equity
 
Noncontrolling
interest
 
Total
equity
December 31, 2016 - as reported
21,633,067

 
$
0.2

 
$
45.0

 
$
51.2

 
$
(1.5
)
 
$
(4.1
)
 
$
90.8

 
$
4.4

 
$
95.2

Cumulative effect adjustment of ASC Topic 606 on January 1, 2017

 

 

 

 

 

 

 

 

December 31, 2016 - as adjusted
21,633,067

 
0.2

 
45.0

 
51.2

 
(1.5
)
 
(4.1
)
 
90.8

 
4.4

 
95.2

Six months ended June 30, 2017 - as reported
271,819

 

 
5.5

 
30.9

 
(5.0
)
 
1.0

 
32.4

 
0.4

 
32.8

Effect of the adoption of ASC Topic 606

 

 

 
0.1

 

 

 
0.1

 

 
0.1

June 30, 2017 - as adjusted
21,904,886

 
$
0.2

 
$
50.5

 
$
82.2

 
$
(6.5
)
 
$
(3.1
)
 
$
123.3

 
$
4.8

 
$
128.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2017 - as reported
21,907,188

 
$
0.2

 
$
54.5

 
$
97.1

 
$
(6.6
)
 
$
(2.9
)
 
$
142.3

 
$
4.8

 
$
147.1

Cumulative effect adjustment of ASC Topic 606 on January 1, 2018

 

 

 
0.2

 

 

 
0.2

 

 
0.2

December 31, 2017 - as adjusted
21,907,188

 
$
0.2

 
$
54.5

 
$
97.3

 
$
(6.6
)
 
$
(2.9
)
 
$
142.5

 
$
4.8

 
$
147.3

Consolidated Statement of Cash Flows (Unaudited)
Six Months Ended June 30, 2017
As Reported
 
Effects of the Adoption of
ASC Topic 606
 
Six Months Ended June 30, 2017
As Adjusted
(in millions)
Cash flows from operating activities
 
 
 
 
 
Net income
$
33.4

 
$
0.1

 
$
33.5

Adjustments to reconcile net income to net cash provided by (used in) operating activities:
 
 
 
 
 
Lower of cost or market adjustment to inventory
(0.1
)
 

 
(0.1
)
Unrealized (gain) loss on derivatives
1.4

 

 
1.4

Depreciation
9.0

 

 
9.0

Amortization of debt discount and issuance costs
0.6

 

 
0.6

Share-based compensation expense
4.3

 

 
4.3

Provision for bad debts, net of reductions
0.4

 

 
0.4

Change in assets and liabilities:
 
 
 
 
 
Accounts receivable
(38.6
)
 

 
(38.6
)
Inventories
(5.2
)
 

 
(5.2
)
Prepaid expenses and other current assets
(21.7
)
 
23.4

 
1.7

Accounts payable
17.6

 

 
17.6

Accrued liabilities
14.2

 
(23.6
)
 
(9.4
)
Income taxes, net
1.9

 
0.1

 
2.0

Other, net
(0.2
)
 

 
(0.2
)
Net cash provided by (used in) operating activities
17.0

 

 
17.0

Cash flows from investing activities
 
 
 
 
 
Capital expenditures
(12.5
)
 

 
(12.5
)
Net cash used in investing activities
(12.5
)
 

 
(12.5
)
Cash flows from financing activities
 
 
 
 
 
Borrowings on ABL Facility
0.4

 

 
0.4

Payments on ABL Facility
(0.4
)
 

 
(0.4
)
Payments on term loan
(1.6
)
 

 
(1.6
)
Principal payments under capital lease obligation
(0.7
)
 

 
(0.7
)
Dividends paid
(1.7
)
 

 
(1.7
)
Proceeds from exercise of stock options
0.7

 

 
0.7

Share repurchases
(5.0
)
 

 
(5.0
)
Net cash used in financing activities
(8.3
)
 

 
(8.3
)
Effect of foreign currency exchange rates
(0.5
)
 

 
(0.5
)
Net increase (decrease) in cash
(4.3
)
 

 
(4.3
)
Cash and cash equivalents at beginning of period
88.2

 

 
88.2

Cash and cash equivalents at end of period
$
83.9

 
$

 
$
83.9