XML 31 R21.htm IDEA: XBRL DOCUMENT v3.23.1
Segmental Information
 3 Months Ended
Apr. 02, 2023
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 four identified business units, which aggregate into the two reportable segments. Luxfer Gas Cylinders forms the Gas Cylinders segment, and Luxfer MEL Technologies, Luxfer Magtech and Luxfer Graphic Arts aggregate into the Elektron segment. The Superform business unit used to aggregate into the Gas Cylinders segment, but is now recognized as discontinued operations. A summary of the operations of the segments is provided below:
Gas Cylinders segment
Our Gas Cylinders segment manufactures and markets specialized products using composites and aluminum, 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.
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 EBITDA, which we defined as segment income and are 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 the 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 Quarters ended April 2, 2023, and March 27, 2022, is included in the following summary:
Net salesAdjusted EBITDA
First QuarterFirst Quarter
In millions2023202220232022
Gas Cylinders segment$41.5 $42.4 $2.5 $2.7 
Elektron segment59.8 54.6 8.8 13.4 
Consolidated$101.3 $97.0 $11.3 $16.1 

Depreciation and amortizationRestructuring charges
First QuarterFirst Quarter
In millions2023202220232022
Gas Cylinders segment$1.1 $1.4 $0.3 $1.4 
Elektron segment2.2 2.3 — — 
Consolidated$3.3 $3.7 $0.3 $1.4 
13.    Segmental Information (continued)
Total assetsCapital expenditures
First Quarter,December 31,First Quarter
In millions2023202220232022
Gas Cylinders segment$143.3 $133.1 $0.3 $0.2 
Elektron segment234.4 216.4 1.7 0.8 
Other36.8 49.5 — — 
Discontinued operations$6.6 $8.1 $(0.1)$— 
Consolidated$421.1 $407.1 $1.9 $1.0 
Property, plant and equipment, net
First QuarterDecember 31,
In millions20232022
U.S.$40.5 $41.6 
United Kingdom33.0 32.0 
Canada2.7 2.8 
Rest of Europe1.0 1.0 
Asia Pacific0.4 0.3 
$77.6 $77.7 
The following table presents a reconciliation of Adjusted EBITDA to net income from continuing operations:
First Quarter
In millions20232022
Adjusted EBITDA$11.3 $16.1 
Other share-based compensation charges(0.6)(0.2)
Depreciation and amortization(3.3)(3.7)
Restructuring charges(0.3)(1.4)
Acquisition and disposal related costs— (0.2)
Defined benefits pension credit (8.9)0.4 
Interest expense, net(1.3)(0.8)
Net (loss) / income before income taxes from continuing operations$(3.1)$10.2 
The following tables present certain geographic information by geographic region for the First Quarter ended April 2, 2023, and March 27, 2022:
Net Sales(1)
First Quarter
20232022
$MPercent$MPercent
United States$57.7 57.0 %$55.3 57.0 %
U.K.5.6 5.5 %5.4 5.6 %
Germany6.3 6.2 %4.5 4.6 %
France2.1 2.1 %3.5 3.6 %
Italy3.3 3.3 %2.3 2.4 %
Top five countries$75.0 74.1 %$71.0 73.2 %
Rest of Europe7.4 7.3 %6.0 6.2 %
Asia Pacific14.8 14.6 %14.6 15.1 %
Other (2)
4.1 4.0 %5.4 5.6 %
$101.3 $97.0 
(1) Net sales are based on the geographic destination of sale.
(2) Other includes Canada, South America, Latin America and Africa.