XML 189 R24.htm IDEA: XBRL DOCUMENT
v3.19.1

Segmental Information | 12 Months Ended
--- | ---
Dec. 31, 2018
Segment Reporting [Abstract] |
Segmental Information | Segmental Information We classify our operations into two core business segments, Gas Cylinders and the Elektron, based primarily on shared economic characteristics for the nature of the products and services; the nature of the production processes; the type or class of customer for their products and services; the methods used to distribute their products or provide their services; and the nature of the regulatory environment. The Company has six identified business units, which aggregate into the two reportable segments. Luxfer Gas Cylinders and Luxfer Superform aggregate into the Gas Cylinders segment, and Luxfer MEL Technologies, Luxfer Magtech, Luxfer Graphic Arts and Luxfer Czech Republic aggregate into the Elektron segment. A summary of the operations of the segments is provided below: Gas Cylinders segment Our Gas Cylinders segment manufactures and markets specialized products using aluminum, titanium and carbon composites, including pressurized cylinders for use in various applications including self-containd breathing apparatus (SCBA) for firefighters, containment of oxygen and other medical gases for healthcare, alternative fuel vehicles, and general industrial. The segment also forms lightweight aluminum and titanium panels into highly complex shapes that are used mainly in the transportation industry. Elektron segment Our Elektron segment focuses on specialty materials based primarily on magnesium and zirconium, with key product lines including advanced lightweight magnesium alloys with a variety of uses across a variety of industries; magnesium powders for use in countermeasure flares, as well as heater meals; photoengraving plates for graphic arts; and high-performance zirconium-based materials and oxides used as catalysts and in the manufacture of advanced ceramics, fiber-optic fuel cells, and many other performance products. Other Other primarily represents unallocated corporate expense and includes non-service related defined benefit pension cost / credit and, in 2017, the cost of converting our ADR structure to a direct listing of our ordinary shares. Management monitors the operating results of its reportable segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated by the chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments and has been identified as the CEO, using adjusted EBITA(1) and adjusted EBITDA, which is defined as segment income and is based on operating income adjusted for share based compensation expense; qualifying restructuring charges; impairment charges; legal expenses incurred from patent litigation with a competitor; profit on sale of redundant site; direct listing costs; acquisition-related charges / credits; loss on disposal of property, plant and equipment; depreciation and amortization; and unwind of discount on deferred consideration. Unallocated assets and liabilities include those which are held on behalf of the Group and cannot be allocated to a segment, such as taxation, investments, cash, retirement benefits obligations, bank and other loans and holding company assets and liabilities. Financial information by reportable segment for the years ended December 31, is included in the following summary:
|  | Net Sales |  |  | Adjusted EBITDA |
| In millions | 2018 |  | 2017 |  | 2016 |  |  | 2018 |  | 2017 |  | 2016 |
| Gas Cylinders segment | $ | 238.1 |  |  | $ | 220.2 |  |  | $ | 225.8 |  |  |  | $ | 23.4 |  |  | $ | 17.0 |  |  | $ | 18.3 |  |
| Elektron segment | 249.8 |  |  | 221.1 |  |  | 189.0 |  |  |  | 56.2 |  |  | 42.3 |  |  | 33.0 |  |
| Consolidated | $ | 487.9 |  |  | $ | 441.3 |  |  | $ | 414.8 |  |  |  | $ | 79.6 |  |  | $ | 59.3 |  |  | $ | 51.3 |  |
|  | Depreciation and amortization |  |  | Restructuring Charges |
| In millions | 2018 |  | 2017 |  | 2016 |  |  | 2018 |  | 2017 |  | 2016 |
| Gas Cylinders segment | $ | 7.3 |  |  | $ | 7.2 |  |  | $ | 7.4 |  |  |  | $ | 10.0 |  |  | $ | 2.9 |  |  | $ | — |  |
| Elektron segment | 11.7 |  |  | 11.1 |  |  | 10.6 |  |  |  | 3.4 |  |  | 5.5 |  |  | 0.4 |  |
| Consolidated | $ | 19.0 |  |  | $ | 18.3 |  |  | $ | 18.0 |  |  |  | $ | 13.4 |  |  | $ | 8.4 |  |  | $ | 0.4 |  |
(1) Adjusted EBITA is adjusted EBITDA less depreciation and loss on disposal of property, plant and equipment. 15. Segmental Information (continued)
|  | Total assets |  |  | Capital expenditure |
| In millions | 2018 |  | 2017 |  | 2016 |  |  | 2018 |  | 2017 |  | 2016 |
| Gas Cylinders segment | $ | 145.6 |  |  | $ | 156.9 |  |  | $ | 151.9 |  |  |  | $ | 2.8 |  |  | $ | 3.5 |  |  | $ | 7.2 |  |
| Elektron segment | 210.5 |  |  | 210.4 |  |  | 190.9 |  |  |  | 10.5 |  |  | 5.8 |  |  | 10.1 |  |
| Other | 34.3 |  |  | 48.5 |  |  | 57.0 |  |  |  | 0.3 |  |  | 0.7 |  |  | — |  |
|  | $ | 390.4 |  |  | $ | 415.8 |  |  | $ | 399.8 |  |  |  | $ | 13.6 |  |  | $ | 10.0 |  |  | $ | 17.3 |  |
The following table presents a reconciliation of Adjusted EBITDA to net income:
| In millions | 2018 |  | 2017 |  | 2016 |
| Adjusted EBITDA | $ | 79.6 |  |  | $ | 59.3 |  |  | $ | 51.3 |  |
| Other share based compensation charges | (4.8 | ) |  | (2.2 | ) |  | (1.4 | ) |
| Loss on disposal of property, plant and equipment | (0.3 | ) |  | — |  |  | (0.2 | ) |
| Depreciation and amortization | (19.0 | ) |  | (18.3 | ) |  | (18.0 | ) |
| Unwind discount on deferred consideration | (0.2 | ) |  | (0.2 | ) |  | (0.4 | ) |
| Restructuring charges | (13.4 | ) |  | (8.4 | ) |  | (0.4 | ) |
| Impairment charge | (7.2 | ) |  | (3.7 | ) |  | — |  |
| Acquisition (costs) / credit | (4.3 | ) |  | 1.3 |  |  | — |  |
| Other charges (1) | — |  |  | (5.8 | ) |  | — |  |
| Other general income | — |  |  | — |  |  | 2.5 |  |
| Defined benefits pension mark-to-market gain / (loss) | 4.7 |  |  | 4.2 |  |  | (2.8 | ) |
| Interest expense, net | (4.6 | ) |  | (6.3 | ) |  | (6.0 | ) |
| Provision for taxes | (5.5 | ) |  | (3.3 | ) |  | (6.8 | ) |
| Net income | $ | 25.0 |  |  | $ | 16.6 |  |  | $ | 17.8 |  |
(1) Other charges include costs incurred on: settlement and other legal expenses incurred in relation to patent infringement litigation against a competitor; and costs incurred in relation to the conversion of the Company's ADR listing to a direct listing of ordinary shares on the New York Stock Exchange. Predominantly all equity income / loss of unconsolidated affiliates for 2018, 2017 and 2016 relates to the Gas Cylinders Segment. 15. Segmental Information (continued) The following tables present certain geographic information by geographic region for the years ended December 31,:
|  | Net Sales |
|  | 2018 |  | 2017 |  | 2016 |
|  | $M | Percent |  | $M | Percent |  | $M | Percent |
| United States | $ | 249.2 |  | 51.1 | % |  | $ | 224.1 |  | 50.8 | % |  | $ | 211.3 |  | 50.9 | % |
| U.K. | 47.6 |  | 9.8 | % |  | 40.4 |  | 9.2 | % |  | 36.5 |  | 8.8 | % |
| Germany | 42.0 |  | 8.6 | % |  | 36.8 |  | 8.3 | % |  | 32.2 |  | 7.8 | % |
| Italy | 23.3 |  | 4.8 | % |  | 19.0 |  | 4.3 | % |  | 19.6 |  | 4.7 | % |
| France | 17.0 |  | 3.4 | % |  | 16.0 |  | 3.6 | % |  | 15.0 |  | 3.6 | % |
| Top five countries | $ | 379.1 |  | 77.7 | % |  | $ | 336.3 |  | 76.2 | % |  | $ | 314.6 |  | 75.8 | % |
| Rest of Europe | 33.2 |  | 6.8 | % |  | 31.1 |  | 7.0 | % |  | 27.4 |  | 6.6 | % |
| Asia Pacific | 53.0 |  | 10.9 | % |  | 47.5 |  | 10.8 | % |  | 45.6 |  | 11.0 | % |
| Other (2) | 22.6 |  | 4.6 | % |  | 26.4 |  | 6.0 | % |  | 27.2 |  | 6.6 | % |
|  | $ | 487.9 |  |  |  | $ | 441.3 |  |  |  | $ | 414.8 |  |  |
|  |  | Property, plant and equipment, net |
| In millions |  | 2018 |  | 2017 |  | 2016 |
| United States |  | $ | 66.1 |  |  | $ | 75.4 |  |  | $ | 77.5 |  |
| United Kingdom |  | 36.0 |  |  | 36.6 |  |  | 34.3 |  |
| Rest of Europe |  | 1.1 |  |  | 13.1 |  |  | 12.8 |  |
| Asia Pacific |  | 0.3 |  |  | 0.2 |  |  | 0.2 |  |
| Other (2) |  | 3.4 |  |  | 3.8 |  |  | 3.8 |  |
|  |  | $ | 106.9 |  |  | $ | 129.1 |  |  | $ | 128.6 |  |
(1) Net sales are based on the geographic destination of sale. (2) Other includes Canada, South America, Latin America and Africa.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration