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Segmental Information
 12 Months Ended
Dec. 31, 2019
Segment Reporting [Abstract]  
Segmental Information 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 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(2) and adjusted EBITDA, which is defined as segment income and is based on operating income adjusted for share based compensation charges; loss on disposal of property, plant and equipment, restructuring charges; impairment charges; acquisition and disposal related gains and costs; other charges; depreciation and amortization; and unwind of discount on deferred consideration.
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 years ended December 31, is included in the following summary:
 
 
Net Sales
 
 
Adjusted EBITDA
 
 
In millions
2019
 
2018
 
2017
 
 
2019
 
2018
 
2017
 
 
Gas Cylinders segment
$
223.6

 
$
238.1

 
$
220.2

 
 
$
23.3

 
$
23.4

 
$
17.0

 
 
Elektron segment
219.9

 
249.8

 
221.1

 
 
44.8

 
56.2

 
42.3

 
 
Consolidated
$
443.5

 
$
487.9

 
$
441.3

 
 
$
68.1

 
$
79.6

 
$
59.3

 
During 2019, 2018 and 2017 there were $0.4 million of sales made from the Elektron segment to the Gas Cylinders segment.
 
 
Depreciation and amortization
 
 
Restructuring Charges
 
 
In millions
2019
 
2018
 
2017
 
 
2019
 
2018
 
2017
 
 
Gas Cylinders segment
$
5.7

 
$
7.3

 
$
7.2

 
 
$
20.7

 
$
10.0

 
$
2.9

 
 
Elektron segment
9.6

 
11.7

 
11.1

 
 
5.2

 
3.4

 
5.5

 
 
Consolidated
$
15.3

 
$
19.0

 
$
18.3

 
 
$
25.9

 
$
13.4

 
$
8.4

 
(1) The Luxfer Czech Republic business unit was sold at the end of the Second Quarter of 2019.
(2) Adjusted EBITA is adjusted EBITDA less depreciation and loss on disposal of property, plant and equipment.
16.    Segmental Information (continued)
 
 
Total assets
 
 
Capital expenditure
 
 
In millions
2019
 
2018
 
2017
 
 
2019
 
2018
 
2017
 
 
Gas Cylinders segment
$
156.0

 
$
157.0

 
$
156.9

 
 
$
3.9

 
$
2.8

 
$
3.5

 
 
Elektron segment
200.8

 
217.5

 
210.4

 
 
10.9

 
10.5

 
5.8

 
 
Other
33.5

 
34.3

 
48.5

 
 
—

 
0.3

 
0.7

 
 
 
$
390.3

 
$
408.8

 
$
415.8

 
 
$
14.8

 
$
13.6

 
$
10.0

 

The following table presents a reconciliation of Adjusted EBITDA to net income:
 
In millions
2019
 
2018
 
2017
 
 
Adjusted EBITDA
$
68.1

 
$
79.6

 
$
59.3

 
 
Other share based compensation charges
(4.5
)
 
(4.8
)
 
(2.2
)
 
 
Loss on disposal of property, plant and equipment
(0.2
)
 
(0.3
)
 
—

 
 
Depreciation and amortization
(15.3
)
 
(19.0
)
 
(18.3
)
 
 
Unwind discount on deferred consideration
(0.2
)
 
(0.2
)
 
(0.2
)
 
 
Restructuring charges
(25.9
)
 
(13.4
)
 
(8.4
)
 
 
Impairment charge
(5.0
)
 
(7.2
)
 
(3.7
)
 
 
Acquisition (costs) / credit
(1.4
)
 
(4.3
)
 
1.3

 
 
Other charges
(2.5
)
 
—

 
(5.8
)
(1) 
 
Defined benefits pension mark-to-market gain
1.3

 
4.7

 
4.2

 
 
Interest expense, net
(4.6
)
 
(4.6
)
 
(6.3
)
 
 
Provision for taxes
(6.7
)
 
(5.5
)
 
(3.3
)
 
 
Net income
$
3.1

 
$
25.0

 
$
16.6

 
(1) Other charges in 2017 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.
Equity income of unconsolidated affiliates for 2019, 2018 and 2017 relates predominantly to the Gas Cylinders Segment.
 
16.    Segmental Information (continued)
The following tables present certain geographic information by geographic region for the years ended December 31,:
 
 
Net Sales(1)
 
 
 
2019
 
2018
 
2017
 
 
 
$M
Percent
 
$M
Percent
 
$M
Percent
 
 
United States
$
239.4

54.0
%
 
$
249.2

51.1
%
 
$
224.1

50.8
%
 
 
U.K.
35.5

8.0
%
 
47.6

9.8
%
 
40.4

9.2
%
 
 
Germany
22.0

5.0
%
 
42.0

8.6
%
 
36.8

8.3
%
 
 
Italy
22.6

5.1
%
 
23.3

4.8
%
 
19.0

4.3
%
 
 
France
16.5

3.7
%
 
17.0

3.4
%
 
16.0

3.6
%
 
 
Top five countries
$
336.0

75.8
%
 
$
379.1

77.7
%
 
$
336.3

76.2
%
 
 
Rest of Europe
38.4

8.7
%
 
33.2

6.8
%
 
31.1

7.0
%
 
 
Asia Pacific
47.6

10.7
%
 
53.0

10.9
%
 
47.5

10.8
%
 
 
Other (2)
21.5

4.8
%
 
22.6

4.6
%
 
26.4

6.0
%
 
 
 
$
443.5

 
 
$
487.9

 
 
$
441.3

 
 


 
 
 
Property, plant and equipment, net
 
 
In millions
 
2019
 
2018
 
2017
 
 
United States
 
$
57.3

 
$
66.1

 
$
75.4

 
 
United Kingdom
 
36.7

 
36.0

 
36.6

 
 
Rest of Europe
 
1.0

 
1.1

 
13.1

 
 
Asia Pacific
 
0.3

 
0.3

 
0.2

 
 
Other (2)
 
3.6

 
3.4

 
3.8

 
 
 
 
$
98.9

 
$
106.9

 
$
129.1

 
(1) Net sales are based on the geographic destination of sale.
(2) Other includes Canada, South America, Latin America and Africa.