XML 525 R28.htm IDEA: XBRL DOCUMENT v3.22.0.1
Commitments and Contingencies
12 Months Ended
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Capital commitments
At December 31, 2021, the Company had capital expenditure commitments of $1.5 million (2020: $1.1 million and 2019: $1.0 million) for the acquisition of new plant and equipment.
Committed banking facilities
The Company refinanced in October 2021, see Note 11 for details of the refinance.
At December 31, 2021, the Company had committed banking facilities of $100.0 million with an additional $50.0 million of uncommitted facilities through an accordion provision. Of these committed facilities, $10.8 million was drawn at December 31, 2021.
The Company also has three separate (uncommitted) bonding facilities for bank guarantees, two denominated in GBP sterling totaling £0.6 million ($0.9 million) and one denominated in USD of $1.5 million. Of that denominated in GBP, £0.1 million ($0.2 million) was utilized at December 31, 2021. Of that denominated in USD, $0.9 million was utilized at December 31, 2021.
The Company also has a $4.0 million separate overdraft facility of which none was drawn at December 31, 2021. The Company has various uncommitted transitional banking and foreign exchange lines available for day-to-day operational purposes.
At December 31, 2020 the Company had committed banking facilities of $150.0 million with an additional $50.0 million of uncommitted facilities through an accordion provision. Of the committed facilities, $4.1 million was drawn at December 31, 2020.
The Company had a separate (uncommitted) facility for letters of credit, which at December 31, 2020, was £1.0 million ($1.3 million). None of these were utilized at December 31, 2020.
The Company also had two separate (uncommitted) bonding facilities for bank guarantees; one denominated in GBP sterling totaling £4.5 million ($6.1 million) and one denominated in USD totaling $1.5 million. Of that dominated in GBP, £1.0 million ($1.4 million) was utilized at December 31, 2020. Of that denominated in USD, $0.8 million was utilized at December 31, 2020.
Contingencies
During February 2014, a cylinder was sold to a long-term customer and ruptured at one of their gas facilities. As a result of this rupture, three people were noted to have injuries, such as loss of hearing. There was no major damage to assets of the customer. A claim has been launched by the three people who were injured in the incident. We have reviewed our quality control checks from around the time that the cylinder was produced, and no instances of failures have been noted. It has also been noted by the investigator that the customer has poor quality and safety checks. In November 2021, during the final hearing, the Court found the representative of Luxfer Gas Cylinders Limited, not guilty and thus the Company was found not liable. The Civil case is still ongoing but as a result of the above, we do not believe that we are liable for the incident, and therefore, do not currently expect this case to have a material impact on the Company's financial position or results of operations.
In November 2018, an alleged explosion occurred at a third-party waste disposal and treatment site in Boise, Idaho, reportedly causing property damage, personal injury, and one fatality. We had contracted with a service company for removal and disposal of certain waste resulting from the magnesium powder manufacturing operations at the Reade facility in Manchester, New Jersey. We believe this service company, in turn, apparently contracted with the third-party disposal company, at whose facility the explosion occurred, for treatment and disposal of the waste. In November 2020, we were named as a defendant in three lawsuits in relation to the incident – one by the third-party disposal company, one by the estate of the decedent, and one by an injured employee of the third-party disposal company. At present, we have received insufficient information on the cause of the explosion. We do not believe that we are liable for the incident, have asserted such, and, therefore, do not currently expect this matter to have a material impact on the Company’s financial position or results of operations.