XML 206 R22.htm IDEA: XBRL DOCUMENT
v3.20.1

Pension Plans | 12 Months Ended
--- | ---
Dec. 31, 2019
Retirement Benefits [Abstract] |
Pension Plans | Pension Plans The Company has defined benefit pension plans in the U.K., the U.S. and France. The levels of funding are determined by periodic actuarial valuations. The assets of the plans are generally held in separate trustee-administered funds. The Company also operates defined contribution plans in the U.K., the U.S., Australia and Canada. The "10% corridor" method for recognizing gains and losses has been adopted. This methodology means that cumulative gains and losses up to an amount equal to 10% of the higher of the liabilities and the assets (the corridor) have no impact on the pension cost. Cumulative gains or losses greater than this corridor are amortized over the average future lifetime of the members in the Plans. The principal defined benefit pension plans in the Company is the U.K. Luxfer Group Pension Plan ("the Plan"), which closed to new members in 1998, new employees then being eligible for a defined contribution plan. In April 2016, the Plan was closed to further benefit accrual with members being offered contributions to a defined contribution plan. The Company's other arrangements are less significant than the Plan, the largest being the BA Holdings, Inc. Pension Plan in the U.S. In December 2005, this plan was closed to further benefit accrual with members being offered contributions to that company's 401(k) plan. At January 1, 2016, the U.S. pension plans (BA Holdings, Inc. Pension Plan and Luxfer Hourly Pension Plan) merged into one plan. The following tables present reconciliations of plan benefit obligations, fair value of plan assets and the funded status of pension plans as of and for the years ended December 31, 2019 and 2018:
|  | 2019 |  | 2019 |  | 2019 |  | 2018 |  | 2018 |  | 2018 |
| In millions | U.K. |  | U.S./ other |  | Total |  | U.K. |  | U.S./ other |  | Total |
| Change in benefit obligations |  |  |  |  |  |  |  |  |  |  |  |
| Benefit obligation at January 1 | $ | 315.2 |  |  | $ | 46.8 |  |  | $ | 362.0 |  |  | $ | 369.7 |  |  | $ | 53.1 |  |  | $ | 422.8 |  |
| Service cost | — |  |  | 0.1 |  |  | 0.1 |  |  | — |  |  | 0.1 |  |  | 0.1 |  |
| Interest cost | 9.2 |  |  | 1.9 |  |  | 11.1 |  |  | 8.6 |  |  | 1.8 |  |  | 10.4 |  |
| Curtailment gain | — |  |  | (1.8 | ) |  | (1.8 | ) |  | — |  |  | — |  |  | — |  |
| Settlement gain | — |  |  | (2.7 | ) |  | (2.7 | ) |  | — |  |  | — |  |  | — |  |
| Actuarial loss / (gain) | 38.4 |  |  | 5.0 |  |  | 43.4 |  |  | (27.7 | ) |  | (5.9 | ) |  | (33.6 | ) |
| Exchange difference | 10.0 |  |  | — |  |  | 10.0 |  |  | (19.7 | ) |  | (0.1 | ) |  | (19.8 | ) |
| Benefits paid | (13.6 | ) |  | (2.2 | ) |  | (15.8 | ) |  | (17.9 | ) |  | (2.2 | ) |  | (20.1 | ) |
| Prior service cost | — |  |  | — |  |  | — |  |  | 2.2 |  |  | — |  |  | 2.2 |  |
| Benefit obligation at December 31 | $ | 359.2 |  |  | $ | 47.1 |  |  | $ | 406.3 |  |  | $ | 315.2 |  |  | $ | 46.8 |  |  | $ | 362.0 |  |
| Change in plan assets |  |  |  |  |  |  |  |  |  |  |  |
| Fair value of plan assets at January 1 | $ | 283.4 |  |  | $ | 38.6 |  |  | $ | 322.0 |  |  | $ | 326.3 |  |  | $ | 41.2 |  |  | $ | 367.5 |  |
| Actual return on assets | 45.4 |  |  | 6.7 |  |  | 52.1 |  |  | (13.0 | ) |  | (2.5 | ) |  | (15.5 | ) |
| Exchange difference | 7.6 |  |  | — |  |  | 7.6 |  |  | (17.8 | ) |  | — |  |  | (17.8 | ) |
| Contributions from employer | 5.9 |  |  | 2.0 |  |  | 7.9 |  |  | 5.8 |  |  | 2.1 |  |  | 7.9 |  |
| Benefits paid | (13.6 | ) |  | (2.2 | ) |  | (15.8 | ) |  | (17.9 | ) |  | (2.2 | ) |  | (20.1 | ) |
| Settlement loss | — |  |  | (2.7 | ) |  | (2.7 | ) |  | — |  |  | — |  |  | — |  |
| Fair value of plan assets at December 31 | $ | 328.7 |  |  | $ | 42.4 |  |  | $ | 371.1 |  |  | $ | 283.4 |  |  | $ | 38.6 |  |  | $ | 322.0 |  |
| Funded status |  |  |  |  |  |  |  |  |  |  |  |
| Benefit obligations in excess of the fair value of plan assets | $ | (30.5 | ) |  | $ | (4.7 | ) |  | $ | (35.2 | ) |  | $ | (31.8 | ) |  | $ | (8.2 | ) |  | $ | (40.0 | ) |
The net benefit obligations of $35.2 million and $40.0 million at December 31, 2019, and December 31, 2018, respectively, are recorded in non-current liabilities in the consolidated balance sheets. 13. Pension Plans (continued) The amounts recognized in the consolidated statements of income in respect of the pension plans were as follows:
|  | 2019 |  | 2019 |  | 2019 |  | 2018 |  | 2018 |  | 2018 |  | 2017 |  | 2017 |  | 2017 |
| In millions | U.K. |  | U.S. / other |  | Total |  | U.K. |  | U.S. / other |  | Total |  | U.K. |  | U.S. / other |  | Total |
| In respect of defined benefit plans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Current service cost | $ | — |  |  | $ | 0.1 |  |  | $ | 0.1 |  |  | $ | — |  |  | $ | 0.1 |  |  | $ | 0.1 |  |  | $ | — |  |  | $ | 0.1 |  |  | $ | 0.1 |  |
| Interest cost | 9.2 |  |  | 1.9 |  |  | 11.1 |  |  | 8.6 |  |  | 1.8 |  |  | 10.4 |  |  | 8.9 |  |  | 1.9 |  |  | 10.8 |  |
| Expected return on assets | (13.4 | ) |  | (2.3 | ) |  | (15.7 | ) |  | (14.5 | ) |  | (2.2 | ) |  | (16.7 | ) |  | (14.8 | ) |  | (1.8 | ) |  | (16.6 | ) |
| Curtailment gain | — |  |  | (1.8 | ) |  | (1.8 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
| Settlement loss | — |  |  | 0.8 |  |  | 0.8 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |
| Amortization of net actuarial loss | 2.5 |  |  | 0.6 |  |  | 3.1 |  |  | 2.3 |  |  | 0.4 |  |  | 2.7 |  |  | 2.5 |  |  | 0.3 |  |  | 2.8 |  |
| Amortization of prior service credit | (0.4 | ) |  | — |  |  | (0.4 | ) |  | (0.5 | ) |  | — |  |  | (0.5 | ) |  | (0.5 | ) |  | — |  |  | (0.5 | ) |
| Total (credit) / charge for defined benefit plans | $ | (2.1 | ) |  | $ | (0.7 | ) |  | $ | (2.8 | ) |  | $ | (4.1 | ) |  | $ | 0.1 |  |  | $ | (4.0 | ) |  | $ | (3.9 | ) |  | $ | 0.5 |  |  | $ | (3.4 | ) |
| In respect of defined contribution plans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Total charge for defined contribution plans | $ | 2.1 |  |  | $ | 2.1 |  |  | $ | 4.2 |  |  | $ | 2.1 |  |  | $ | 2.3 |  |  | $ | 4.4 |  |  | $ | 1.9 |  |  | $ | 2.1 |  |  | $ | 4.0 |  |
| Total charge / (credit) for pension plans | $ | — |  |  | $ | 1.4 |  |  | $ | 1.4 |  |  | $ | (2.0 | ) |  | $ | 2.4 |  |  | $ | 0.4 |  |  | $ | (2.0 | ) |  | $ | 2.6 |  |  | $ | 0.6 |  |
In accordance with ASC 715, defined benefit pension charge / (credit) is split in the income statement, with $0.3 million (2018: $0.7 million; 2017: $0.8 million) of expenses recognized within sales, general and administrative expenses, a credit of $1.8 million (2018 and 2017 nil) in relation to the curtailment gain on the French pension plan, recognized in restructuring charges and a credit of $1.3 million (2018: $4.7 million credit; 2017: $4.2 million credit) recognized below operating income in the income statement. The following table shows other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) ("AOCI") during the years ended December 31:
| In millions | 2019 |  | 2018 |
| Net actuarial (loss) / gain | $ | (7.5 | ) |  | $ | 1.4 |  |
| Amortization of actuarial loss | 3.1 |  |  | 2.7 |  |
| Prior service cost | — |  |  | (2.2 | ) |
| Amortization of prior service credit | (0.4 | ) |  | (0.5 | ) |
| Total recognized in other comprehensive loss | (4.8 | ) |  | 1.4 |  |
| Total credit recognized in net periodic benefit cost and other comprehensive income | $ | (2.0 | ) |  | $ | 5.4 |  |
The estimated net loss for defined benefit plans included in AOCI that will be recognized in net periodic benefit cost during 2020 is $2.4 million, consisting of amortization of net actuarial loss of $2.8 million, partially offset by amortization of prior service credit of $0.4 million. The following table shows the amounts included in AOCI that have not yet been recognized as components of net periodic benefit cost for the years ended December 31:
| In millions | 2019 |  | 2018 |
| Net actuarial loss | $ | (140.8 | ) |  | $ | (136.4 | ) |
| Net prior service credit | 12.3 |  |  | 12.7 |  |
| Total included in AOCI not yet recognized in the statement of loss | $ | (128.5 | ) |  | $ | (123.7 | ) |
13. Pension Plans (continued) The financial assumptions used in the calculations were:
|  | Projected Unit Credit Valuation |
|  | U.K. |  | U.S. |
|  | 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017 |
|  | % |  | % |  | % |  | % |  | % |  | % |
| Discount rate | 2.10 |  | 2.90 |  | 2.40 |  | 3.10 |  | 4.20 |  | 3.60 |
| Expected return on assets | 4.10 |  | 4.90 |  | 4.80 |  | 6.20 |  | 6.20 |  | 6.00 |
| Retail price inflation | 2.90 |  | 3.30 |  | 3.10 |  | n/a |  | n/a |  | n/a |
| Inflation related assumptions: |  |  |  |  |  |  |  |  |  |  |  |
| Salary inflation | n/a |  | n/a |  | n/a |  | n/a |  | n/a |  | n/a |
| Consumer price inflation | 2.00 |  | 2.20 |  | 2.10 |  | n/a |  | n/a |  | n/a |
| Pension increases—pre April 6, 1997 | 1.80 |  | 2.00 |  | 1.90 |  | n/a |  | n/a |  | n/a |
| —1997 - 2005 | 2.10 |  | 2.20 |  | 2.10 |  | n/a |  | n/a |  | n/a |
| —post April 5, 2005 | 1.70 |  | 1.80 |  | 1.70 |  | n/a |  | n/a |  | n/a |
The discount rate used represents the annualized yield based on a cash-flow matched methodology with reference to an AA corporate bond spot curve and having regard to the duration of the Plan’s liabilities. The inflation rate is derived using a similar cash flow matched methodology as used for the discount rate but having regard to the difference between yields on fixed-interest and index-linked United Kingdom government gilts. The expected return on assets assumption is set having regard to the asset allocation and expected return on each asset class as at the balance sheet date.
|  | 2019 |  | 2018 |
| Other principal actuarial assumptions: | Years |  | Years |
| Life expectancy of male / female in the U.K. aged 65 at accounting date | 21.5 / 24.2 |  | 21.4 / 24.1 |
| Life expectancy of male / female in the U.K. aged 65 at 20 years after accounting date | 22.8 / 25.7 |  | 22.8 / 25.7 |
Investment strategies For the principal defined benefit plan in the Company and the U.K., the Luxfer Group Pension Plan, the assets are invested in a diversified range of asset classes and include matching assets (comprising fixed-interest and index-linked bonds and swaps) and growth assets (comprising all other assets). The Trustees of the Plan have formulated a de-risking strategy to help control the short-term risk of volatility associated with holding growth assets. The Trustees also monitor the cost of a buy-in to secure pensioner liabilities with an insurance company to ensure they and the Company are able to act if such an opportunity arises. Other options to progressively reduce the scale of the liabilities are discussed between the Trustees and the Company. Risk exposures The Company is at risk of adverse experience relating to the defined benefit plans. The plans hold a high proportion of assets in equity and other growth investments, with the intention of growing the value of assets relative to liabilities. The Company is at risk if the value of liabilities grows at a faster rate than the plans assets, or if there is a significant fall in the value of these assets not matched by a fall in the value of liabilities. If these events occurred, this would be expected to lead to an increase in the Company's future cash contributions. 13. Pension Plans (continued) Special events In June 2019, the closure of Luxfer Gas Cylinders' French site affected the French pension plan. This resulted in a curtailment gain of $1.8 million and triggered immediate recognition of the unamortized net actuarial losses of $0.3 million. In December 2019, the U.S. plan offered deferred members the opportunity to receive a lump sum in respect of their benefits in the Plan. The result of this exercise was that lump sums totalling $2.7 million were paid out with a corresponding $3.6 million of defined benefit obligation being extinguished. This triggered immediate recognition of the unamortized net actuarial losses of $0.8 million. In October 2018, following a High Court ruling in the U.K., a $2.2 million allowance in relation to the expected future costs of equalizing Guaranteed Minimum Pensions (GMPs) in the U.K. Plan has been included in the obligations on the balance sheet at December 31, 2018. This allowance is being amortized in the income statement over the future lifetime of the Plan members. The fair value of plan assets were:
|  | 2019 |  | 2019 |  | 2019 |  | 2018 |  | 2018 |  | 2018 |
| In millions | U.K. |  | U.S./ other |  | Total |  | U.K. |  | U.S./ other |  | Total |
| Assets in active markets: |  |  |  |  |  |  |  |  |  |  |  |
| Equities and growth funds | $ | 146.8 |  |  | $ | 26.2 |  |  | $ | 173.0 |  |  | $ | 173.1 |  |  | $ | 20.6 |  |  | $ | 193.7 |  |
| Government bonds | 52.7 |  |  | — |  |  | 52.7 |  |  | 46.7 |  |  | — |  |  | 46.7 |  |
| Corporate bonds | 129.1 |  |  | 16.2 |  |  | 145.3 |  |  | 63.6 |  |  | 18.0 |  |  | 81.6 |  |
| Cash | 0.1 |  |  | — |  |  | 0.1 |  |  | — |  |  | — |  |  | — |  |
| Total fair value of plan assets | $ | 328.7 |  |  | $ | 42.4 |  |  | $ | 371.1 |  |  | $ | 283.4 |  |  | $ | 38.6 |  |  | $ | 322.0 |  |
All investments were classified as Level 2 in the fair value hierarchy as of December 31, 2019 and December 31, 2018. The following benefit payments are expected to be paid by the plans for the years ended December 31 as follows:
| In millions | U.K. pension plans |  | U.S./ other pension plans
| 2020 | $ | 14.9 |  |  | $ | 2.4 |
| 2021 | 15.2 |  |  | 2.4 |
| 2022 | 15.6 |  |  | 2.4 |
| 2023 | 15.9 |  |  | 2.4 |
| 2024 | 16.3 |  |  | 2.4 |
| Thereafter | $ | 85.3 |  |  | $ | 11.8 |
The estimated amount of employer contributions expected to be paid to the defined benefit pension plans for the year ending December 31, 2020, is $7.9 million (2019: $7.9 million actual employer contributions).

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

X
- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration