Supplementary balance sheet information

12 Months Ended

Dec. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]



In millions	2019			2018
Accounts and other receivables
Trade receivables	$	52.4		$	49.8
Related parties	2.7			0.9
Prepayments and accrued income	6.7			7.7
Derivative financial instruments	0.3			0.1
Other receivables	4.2			4.2
Total accounts and other receivables	$	66.3		$	62.7

Inventories
Raw materials and supplies	$	33.4		$	30.5
Work-in-process	32.2			33.1
Finished goods	28.9			30.0
Total inventories	$	94.5		$	93.6

Other current assets
Held-for-sale assets	$	3.9		$	10.7
Income tax receivable	1.1			—
Total other current assets	$	5.0		$	10.7

Property, plant and equipment, net
Land, buildings and leasehold improvements	$	68.1		$	73.3
Machinery and equipment	287.7			286.0
Construction in progress	8.9			10.1
Total property plant and equipment	364.7			369.4
Accumulated depreciation and impairment	(265.8		)	(262.5		)
Total property, plant and equipment, net	$	98.9		$	106.9

Current maturities of long-term debt and short-term borrowings
Overdrafts	—			3.5
Total current maturities of long-term debt and short-term borrowings	$	—		$	3.5

Other current liabilities
Contingent liabilities	$	6.6		$	5.3
Held-for-sale liabilities	—			2.5
Operating lease liability	3.3			3.5
Other current liabilities	2.4			4.1
Total other current liabilities	$	12.3		$	15.4

Other non-current liabilities
Contingent liabilities	$	0.9		$	0.8
Operating lease liability	11.7			14.9
Other non-current liabilities	0.2			0.5
Total other non-current liabilities	$	12.8		$	16.2

8. Supplementary balance sheet information (continued)

Impairment of property, plant and equipment

Property, plant and equipment, net, includes an impairment of $4.6 million recognized within restructuring charges and $5.2 million recognized within impairment charges in 2019 (2018: $6.6 million and nil).

The $4.6 million (2018: $1.5 million) recognized within restructuring charges in 2019 relates to the write-down of land and buildings within the Elektron segment as a result of announced exits. In 2018 there was $5.1 million relating to rationalization activity in the Gas Cylinders segment.

The $5.2 million recognized within impairment charges in 2019 relates to the downturn in the European luxury automotive market which has adversely impacted our Superform business within the Gas Cylinders segment.

Held-for-sale assets

In 2019, there was one building valued at $3.7 million, within our Elektron Segment classified as held-for-sale assets, presented within other current assets. The building was classified as held-for-sale in 2018, as the expectation was that the building would be sold in 2019. There are conditions attached to the sale which the Company expects to be met in 2020 and as such the building continues to be classified as held-for-sale.

There is also $0.2 million of inventory which has been reclassified as held-for-sale assets, in relation to one of our operations within our Gas Cylinders Segment.

During 2018, two buildings valued at $4.7 million, within our Elektron Segment were classified as held-for-sale assets, presented within other current assets. The buildings were part of separate site closures announced in 2017 (Riverhead, NY) and early 2018 (Findlay, OH) and were readily available for sale at December 31, 2018. The buildings were impaired to their fair value less costs to sell, with the impairment ($1.1 million) disclosed within restructuring charges in the consolidated statement of income in 2017. The property at Findlay, OH, was sold during the first half of 2019; the site at Riverhead, NY is now expected to be sold during 2020 and is included within held-for-sale assets as at December 31,2019.

The Company was actively marketing and was in negotiations with a third party during the fourth quarter of 2018 with a view to selling its Magnesium Elektron CZ s.r.o. subsidiary, which was involved in magnesium recycling and based in the Czech Republic. This led to the business being classified as held-for-sale and written down to fair value less costs to sell. An offer was received and subsequently accepted in February 2019. The $3.4 million charge is presented within impairment charges in the consolidated statement of income in 2018 and has been allocated to property, plant and equipment. The transaction was completed in the first half of 2019.

The respective assets and liabilities of the above disposal groups have been reclassified as held-for-sale within other current assets and other current liabilities per the table below.



Reclassified to held-for-sale assets	December 31, 2019		December 31, 2018
In millions
Property, plant and equipment	$	3.7	$	5.5
Inventory	0.2		2.9
Accounts and other receivables	—		2.3
Held-for-sale assets	$	3.9	$	10.7

Reclassified to held-for-sale liabilities
Accounts payables	$	—	$	2.5
Held-for-sale liabilities	$	—	$	2.5

As a result of items reclassified to held-for-sale, there has been no reclassification of items from other comprehensive income to the income statement.