XML 55 R25.htm IDEA: XBRL DOCUMENT
v3.24.0.1

Share Plans | 12 Months Ended
--- | ---
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract] |
Share Plans | Share Plans (a) The Luxfer Group Employee Share Ownership Plan The trust In 1997, the Company established an employee benefit trust ("the ESOP") with independent Trustees, to purchase and hold shares in the Company in trust to be used to satisfy options granted to eligible senior employees under the Company's share plans established from time to time. The ESOP was established with the benefit of a gift equivalent to the set up and running costs. Purchase monies and costs required by the ESOP Trustees to purchase shares for and under the provisions of the trust are provided by way of an interest free loan from a Company subsidiary. The loan is repayable, in normal circumstances, out of monies received from senior employees when they exercise options granted to them over shares. Surplus shares are held by the ESOP Trustees to satisfy future option awards. The ESOP Trustees have waived their right to receive dividends on shares held in trust. The Remuneration Committee is charged with determining which senior employees are to be granted options, and in what number, subject to the relevant plan rules. Changes in the year The change in the number of shares held by the Trustees of the ESOP and the number of share options held over those shares are shown below:
|  |  | Number of shares held by ESOP Trustees |
|  |  |  | £0.50 ordinary shares |
| At January 1, 2023 |  |  | 721,261 |  |
| Shares utilized during the year |  |  | (85,460) |  |
| At December 31, 2023 |  |  | 635,801 |  |
At December 31, 2023, the loan outstanding from the ESOP was $0.5 million (2022: $0.5 million). The market value of each £0.50 ordinary share held by the ESOP at December 31, 2023, was $8.94 (2022: $13.72). (b) Share-based compensation Luxfer Holdings PLC Long-Term Umbrella Incentive Plan and Luxfer Holdings PLC Non-Executive Directors Equity Incentive Plan As an important retention tool and to align the long-term financial interests of our management with those of our shareholders, the Company adopted the Luxfer Holdings PLC Long-Term Umbrella Incentive Plan (the "LTIP") for the Company's senior employees and the Luxfer Holdings PLC Non-Executive Directors Equity Incentive Plan (the "Director EIP") for the Non-Executive Directors. The equity or equity-related awards under the LTIP and the Director EIP are based on the ordinary shares of the Company. The Remuneration Committee administers the LTIP and has the power to determine to whom the awards will be granted, the amount, type and other terms. Awards granted under the LTIP generally vest one-quarter each year over a four-year period, subject to continuous employment and certain other conditions, with the exercise period expiring six years after grant date. Awards granted under the Director EIP are non-discretionary, are purely time-based and vest over one year, with settlement occurring immediately on vesting. 16. Share Plans (continued) (b) Share-based compensation (continued) Share option and restricted stock awards In March 2023, a combined 127,000 of Restricted Stock Units and Options over ordinary shares were granted under the LTIP, which were all time-based awards vesting over a period of four years and expiring two years later. Also in March 2023, a maximum 157,000 awards were granted based on the achievement of shareholder return targets. In June 2023, a combined 31,000 Restricted Stock Units and Options over ordinary shares were granted under the Director EIP, which were all time-based awards that would fully vest one year later. In March 2022, a combined 130,000 of Restricted Stock Units and Options over ordinary shares were granted under the LTIP, which were all time-based awards vesting over a period between three and four years and expiring two years later. Also throughout 2022, a maximum 280,000 awards were granted based on the achievement of shareholder return targets. In May 2022, 19,000 additional awards were granted under the LTIP, which were all time-based awards vesting over four years and an additional 15,000 awards were granted under the LTIP, which vested immediately. In June 2022, a combined 26,000 Restricted Stock Units and Options over ordinary shares were granted under the Director EIP, which were all time-based awards that would fully vest one year later. In March 2021, a combined 110,000 of Restricted Stock Units and Options over ordinary shares were granted under the LTIP, which were all time-based awards vesting over four years and expiring two years later. Also throughout 2021, a maximum 100,000 awards were granted based on the achievement of shareholder return targets. In June 2021, a combined 19,000 Restricted Stock Units and Options over ordinary shares were granted under the Director EIP, which were all time-based awards that would fully vest one year later. Total share-based compensation expense for 2023, 2022 and 2021 was as follows:
|  | Years ended December 31, |
| In millions | 2023 |  | 2022 |  | 2021 |
| Total share-based compensation charges | $ | 2.8 |  |  | $ | 2.5 |  |  | $ | 2.8 |  |
There were no cancellations or modifications to the awards in 2023, 2022 or 2021. The actual tax benefit realized for the tax deductions from option exercises totaled $0.4 million, $0.8 million and $1.1 million in 2023, 2022 and 2021, respectively. The following tables illustrates the number of, and movements in, share options during the year, with each option relating to one ordinary share:
|  | Number of shares |  | Weighted- average exercise price |  | Weighted- average remaining contractual life (years) |  | Aggregate intrinsic value ($M) |
| At January 1, 2023 | 579,153 |  |  | $ | 1.00 |  |  | 3.0 |  | $ | 8.0 |  |
| Granted during the year | 314,828 |  |  | $ | 1.00 |  |  |  |  |  |
| Exercised during the year | (116,148) |  |  | $ | 1.00 |  |  |  |  |  |
| Accrued dividend awards | 10,902 |  |  | $ | 1.00 |  |  |  |  |  |
| Lapsed during the year | (75,638) |  |  | $ | 1.00 |  |  |  |  |  |
| At December 31, 2023 | 713,097 |  |  | $ | 1.00 |  |  | 3.0 |  | $ | 6.4 |  |
| Options exercisable at December 31, 2023 | 16,423 |  |  | $ | 1.00 |  |  | 2.9 |  | $ | 0.1 |  |
| Options expected to vest as of December 31, 2023 | 387,123 |  |  | $ | 1.00 |  |  | 3.0 |  | $ | 3.5 |  |
The weighted average fair value of options granted in 2023, 2022 and 2021 was estimated to be $14.73, $16.45 and $20.56 per share, respectively. The total intrinsic value of options that were exercised during 2023, 2022 and 2021 was $1.7 million, $2.9 million and $5.8 million, respectively. At December 31, 2023, the total unrecognized compensation cost related to share options was $2.8 million (2022: $3.1 million). This cost is expected to be recognized over a weighted average period of 2.4 years (2022: 2.7 years ). 16. Share Plans (continued) (b) Share-based compensation (continued) The following table illustrates the assumptions used in deriving the fair value of share options during the year:
|  | 2023 |  | 2022 |  | 2021 |
| Dividend yield (%) | 3.15 - 3.32 |  | 2.75 - 3.41 |  | 2.27 |
| Expected volatility range (%) | 31.54 - 43.49 |  | 36.11 - 49.43 |  | 42.80 - 59.03 |
| Risk-free interest rate (%) | 3.67 - 5.16 |  | 1.28 - 2.99 |  | 0.04 - 0.24 |
| Expected life of share options range (years) | 1.00 - 4.00 |  | 0.50 - 4.00 |  | 0.50 - 4.00 |
| Forfeiture rate (%) | 5.00 |  |  | 5.00 |  |  | 5.00 |  |
| Weighted average exercise price ($) | $1.00 |  | $1.00 |  | $1.00 |
| Models used | Black-Scholes & Monte-Carlo |  | Black-Scholes & Monte-Carlo |  | Black-Scholes & Monte-Carlo |
The expected life of the share options is based on historical data and current expectations and is not necessarily indicative of exercise patterns that may occur. The expected volatility reflects the assumption that the historical volatility over a period similar to the life of the options is indicative of future trends, which may not necessarily be the actual outcome. Employee share incentive plans The Company operates an all-employee share incentive plan in its U.K. and U.S. operations and may look to implement plans in other geographic regions.

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//718/tableOfContent Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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