Global Brass and Copper Holdings, Inc. ("Holdings," the "Company," "we," "us," or "our") was incorporated in Delaware on October 10, 2007. We commenced commercial operations on November 19, 2007 following the acquisition of the metals business from Olin Corporation. The majority of our operations are managed through three reportable operating segments: Olin Brass, Chase Brass and A.J. Oster.
We are a leading value-added converter, fabricator, processor and distributor of specialized non-ferrous products, including a wide range of sheet, strip, foil, rod, tube and fabricated metal component products. While we primarily process copper and copper alloys, we also reroll and form certain other metals such as stainless steel, carbon steel and aluminum. Using processed scrap, virgin metals and other refined metals, we engage in metal melting and casting, rolling, drawing, extruding, welding and stamping to fabricate finished and semi-finished alloy products. Key attributes of copper and copper alloys are conductivity, corrosion resistance, strength, malleability, cosmetic appearance and bactericidal properties.
Unlike traditional metals companies, particularly those that engage in mining, smelting and refining activities, we are purely a metal converter, fabricator, processor and distributor, and we do not attempt to generate profits from fluctuations in publicly traded commodity metal prices. Our financial performance is primarily driven by metal conversion economics, not by the underlying movements in the commodity price of copper and the other metals we use. Through our "balanced book" approach (as further described under "Management's Discussion and Analysis of Financial Condition and Results of Operations-Key Business Principles Affecting Our Results of Operations -Balanced Book"), we strive to match the timing, quantity and price of our metal sales with the timing, quantity and price of our replacement metal purchases. We do this, for the most part, by basing both sales and purchase transaction on the price of publicly traded commodity prices and having both transactions occur on the same date. This practice, along with our toll processing operations and last-in, first-out ("LIFO") inventory accounting methodology, substantially reduces the financial impact of metal price movements on our earnings and operating margins.