Segmental information

We classify our operations into two core business segments, Gas Cylinders and 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⁽¹⁾ 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-contained 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.

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 as the CEO, using adjusted EBITA⁽²⁾ and adjusted EBITDA, which we defined as segment income and is based on operating income adjusted for share-based compensation expense; qualifying restructuring charges; impairment charges; acquisition and disposal related gains and costs; other charges; loss on disposal of property, plant and equipment; depreciation and amortization; and unwind of discount on deferred consideration.

15. Segmental information (continued)

Unallocated assets and liabilities include those which are held on behalf of the Company 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 Third Quarter and year-to-date ended September 29, 2019, and September 30, 2018, is included in the following summary:



	Net sales								Adjusted EBITDA
	Third Quarter				Year-to-date				Third Quarter				Year-to-date
In millions	2019		2018		2019		2018		2019		2018		2019		2018
Gas Cylinders segment	$	54.2	$	62.2	$	170.7	$	181.9	$	6.3	$	6.3	$	17.9	$	17.3
Elektron segment	52.9		66.9		173.3		195.1		10.4		16.7		37.5		46.3
Consolidated	$	107.1	$	129.1	$	344.0	$	377.0	$	16.7	$	23.0	$	55.4	$	63.6



	Depreciation and amortization								Restructuring charges
	Third Quarter				Year-to-date				Third Quarter				Year-to-date
In millions	2019		2018		2019		2018		2019		2018		2019		2018
Gas Cylinders segment	$	1.3	$	1.9	$	4.1	$	5.8	$	2.3	$	—	$	19.5	$	0.1
Elektron segment	2.3		2.8		7.2		8.7		0.3		1.1		4.8		2.0
Consolidated	$	3.6	$	4.7	$	11.3	$	14.5	$	2.6	$	1.1	$	24.3	$	2.1



	Total assets				Capital expenditures
	September 29,		December 31,		Third Quarter				Year-to-date
In millions	2019		2018		2019		2018		2019		2018
Gas Cylinders segment	$	161.4	$	156.3	$	0.5	$	0.8	$	2.9	$	1.5
Elektron segment	203.2		218.2		0.3		3.3		8.2		6.4
Other	37.8		34.3		—		0.1		—		0.1
	$	402.4	$	408.8	$	0.8	$	4.2	$	11.1	$	8.0



	Property, plant and equipment, net
	September 29,		December 31,
In millions	2019		2018
United States	$	58.2	$	66.1
United Kingdom	38.3		36.0
Rest of Europe	1.0		1.1
Asia Pacific	0.3		0.3
Other ⁽³⁾	3.7		3.4
	$	101.5	$	106.9

⁽¹⁾ The Luxfer Czech Republic business unit was sold at the end of the Second Quarter of 2019. Its results of operations are included within the 2018 figures and 2019 year-to-date figures.

⁽²⁾Adjusted EBITA is adjusted EBITDA less depreciation and loss on disposal of property, plant and equipment.

⁽³⁾ Other includes Canada, South America, Latin America and Africa.

15. Segmental information (continued)

The following table presents a reconciliation of Adjusted EBITDA to net income:



	Third Quarter						Year-to-date
In millions	2019			2018			2019			2018
Adjusted EBITDA	$	16.7		$	23.0		$	55.4		$	63.6
Other share-based compensation charges	(0.6		)	(1.2		)	(4.0		)	(3.1		)
Loss on disposal of property, plant and equipment	—			(0.2		)	—			(0.2		)
Depreciation and amortization	(3.6		)	(4.7		)	(11.3		)	(14.5		)
Unwind discount on deferred consideration	(0.1		)	(0.2		)	(0.2		)	(0.5		)
Restructuring charges	(2.6		)	(1.1		)	(24.3		)	(2.1		)
Fair value adjustment to held-for-sale assets	—			—			0.2			—
Acquisition and disposal related gains / (costs)	—			—			(1.7		)	—
Other charges ⁽⁴⁾	(2.7		)	—			(2.7		)	—
Defined benefits pension mark-to-market gain	0.6			1.3			1.7			3.9
Interest expense, net	(1.3		)	(1.2		)	(3.5		)	(3.7		)
Provision for income taxes	(0.6		)	(3.5		)	(4.1		)	(9.9		)
Net income	$	5.8		$	12.2		$	5.5		$	33.5

The following tables present certain geographic information by geographic region for the Third Quarter and Year-to-date, ended June 30, 2019 and July 1, 2018, respectively:



	Net Sales⁽⁵⁾
	Third Quarter								Year-to-date
	2019				2018				2019				2018
	$M		Percent		$M		Percent		$M		Percent		$M		Percent
United States	$	58.0	54.1	%	$	67.2	52.1	%	$	182.4	52.9	%	$	195.4	51.8	%
U.K.	7.9		7.4	%	13.1		10.1	%	28.5		8.3	%	36.5		9.7	%
Germany	4.2		3.9	%	10.6		8.2	%	18.2		5.3	%	31.6		8.4	%
Italy	5.1		4.8	%	6.9		5.3	%	16.8		4.9	%	17.0		4.5	%
France	3.5		3.3	%	3.9		3.0	%	12.9		3.8	%	12.9		3.4	%
Top five countries	$	78.7	73.6	%	$	101.7	78.8	%	$	258.8	75.2	%	$	293.4	77.8	%
Rest of Europe	8.6		8.0	%	7.7		6.0	%	30.5		8.9	%	25.1		6.7	%
Asia Pacific	13.0		12.1	%	14.3		11.1	%	37.3		10.8	%	40.7		10.8	%
Other ⁽⁶⁾	6.8		6.3	%	5.4		4.2	%	17.4		5.1	%	17.8		4.7	%
	$	107.1			$	129.1			$	344.0			$	377.0

(4) Other charges relates to an expense incurred in relation to the Company's decision to commence a project to remove low-level naturally occurring radioactive material.

(5) Net sales are based on the geographic destination of sale.

(6) Other includes Canada, South America, Latin America and Africa.