Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Jun. 29, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Luxfer Holdings PLC | |
Entity Central Index Key | 0001096056 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-K | |
Document Period End Date | Dec. 31, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 27,000,498 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity Public Float | $ 464,249,275 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 487.9 | $ 441.3 | $ 414.8 |
Cost of goods sold | (365.8) | (332.7) | (320.2) |
Gross profit | 122.1 | 108.6 | 94.6 |
Selling, general and administrative expenses | (60.8) | (68.1) | (56.2) |
Research and development | (6.4) | (7.8) | (7.6) |
Restructuring charges | (13.4) | (8.4) | (0.4) |
Impairment charges | (7.2) | (3.7) | 0 |
Acquisition related (costs) / credits | (4.3) | 1.3 | 0 |
Other general income | 0 | 0 | 2.5 |
Operating income | 30 | 21.9 | 32.9 |
Interest expense | (5) | (6.6) | (6.3) |
Interest income | 0.4 | 0.3 | 0.3 |
Defined benefit pension credit / (expense) | (4.7) | (4.2) | 2.8 |
Income before income taxes and equity in net income of affiliates | 30.1 | 19.8 | 24.1 |
Provision for income taxes | (5.5) | (3.3) | (6.8) |
Income before equity in net income of affiliates | 24.6 | 16.5 | 17.3 |
Equity in income of affiliates (net of tax) | 0.4 | 0.1 | 0.5 |
Net income | $ 25 | $ 16.6 | $ 17.8 |
Earnings per share | |||
Basic (usd per share) | $ 0.94 | $ 0.63 | $ 0.67 |
Diluted (usd per share) | $ 0.90 | $ 0.62 | $ 0.67 |
Weighted average ordinary shares outstanding | |||
Basic (shares) | 26,708,469 | 26,460,947 | 26,443,662 |
Diluted (shares) | 27,692,262 | 26,723,981 | 26,654,638 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 25 | $ 16.6 | $ 17.8 |
Other comprehensive (loss) / income | |||
Net change in foreign currency translation adjustment | (6.4) | 11.9 | (14.8) |
Pension and post-retirement actuarial gains / (losses), net of $0.3, $0.6 and $(2.9) tax, respectively | 1.1 | 3.3 | (17.2) |
Cash flow hedges, net of $0.0, $0.6 and $0.0 of tax, respectively | (0.6) | 3.1 | 0.2 |
Other comprehensive (loss) / income, net of tax | (5.9) | 18.3 | (31.8) |
Total comprehensive income / (loss) | $ 19.1 | $ 34.9 | $ (14) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS) CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS) (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Pension and post-retirement actuarial gains / (losses), tax | $ 0.3 | $ 0.6 | $ (2.9) |
Cash flow hedges, tax | $ 0 | $ 0.6 | $ 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 13.8 | $ 12.6 |
Restricted cash | 0.3 | 0.7 |
Accounts and other receivables, net of allowances of $2.4 and $4.1 respectively | 62.7 | 72.4 |
Inventories | 93.6 | 82.2 |
Investments and loans to joint ventures and other affiliates | 0 | 1.6 |
Other current assets | 10.7 | 1.2 |
Total current assets | 181.1 | 170.7 |
Non-current assets | ||
Property, plant and equipment, net | 106.9 | 129.1 |
Goodwill | 67.6 | 71.2 |
Intangibles, net | 14.6 | 16.1 |
Deferred tax assets | 18.6 | 20.8 |
Investments and loans to joint ventures and other affiliates | 1.6 | 7.6 |
Other non-current assets | 0 | 0.3 |
Total assets | 390.4 | 415.8 |
Current liabilities | ||
Current maturities of long-term debt and short-term borrowings | 3.5 | 19.2 |
Accounts payable | 36.9 | 28.4 |
Accrued liabilities | 33.8 | 29.7 |
Taxes on income | 1.6 | 0.3 |
Other current liabilities | 11.9 | 6.4 |
Total current liabilities | 87.7 | 84 |
Non-current liabilities | ||
Long-term debt | 73.6 | 94.6 |
Pensions and other retirement benefits | 40 | 55.3 |
Deferred tax liabilities | 3.5 | 4.2 |
Other non-current liabilities | 1.3 | 3.2 |
Total liabilities | 206.1 | 241.3 |
Shareholders' equity | ||
Common stock | 176.5 | 176.2 |
Additional paid-in capital | 65.6 | 62.1 |
Treasury shares | (4.3) | (5.8) |
Own shares held by ESOP | (2.2) | (1) |
Retained earnings | 95.3 | 83.7 |
Accumulated other comprehensive loss | (146.6) | (140.7) |
Total shareholders' equity | 184.3 | 174.5 |
Total liabilities and shareholders' equity | 390.4 | 415.8 |
Ordinary shares | ||
Shareholders' equity | ||
Common stock | 26.6 | 25.3 |
Deferred shares | ||
Shareholders' equity | ||
Common stock | $ 149.9 | $ 150.9 |
CONSOLIDATED BALANCE SHEETS CON
CONSOLIDATED BALANCE SHEETS CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Millions | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares |
Statement of Financial Position [Abstract] | ||
Accounts and other receivables, allowances | $ | $ 2.4 | $ 4.1 |
Common stock, shares authorized | 761,885,318,444 | 769,463,688,000 |
Common stock, shares issued | 761,864,338,444 | 769,440,844,799 |
Ordinary shares | ||
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares issued | 29,000,000 | 27,136,799 |
Common stock, shares outstanding | 29,000,000 | 27,136,799 |
Deferred shares | ||
Common stock, shares authorized | 761,845,318,444 | 769,423,688,000 |
Common stock, shares issued | 761,835,338,444 | 769,413,708,000 |
Common stock, shares outstanding | 761,835,338,444 | 769,413,708,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating activities | |||
Net income | $ 25 | $ 16.6 | $ 17.8 |
Adjustments to reconcile net income to net cash provided by (used for) operating activities | |||
Equity income of unconsolidated affiliates | (0.4) | (0.1) | (0.5) |
Depreciation | 17.8 | 17 | 17 |
Amortization of purchased intangible assets | 1.2 | 1.3 | 1.1 |
Amortization of debt issuance costs | 0.3 | 0.6 | 0.5 |
Share-based compensation charge | 4.8 | 3.1 | 1.4 |
Deferred income taxes | 0.2 | (2.7) | 2.9 |
Loss / (gain) on disposal of property, plant and equipment | 0.3 | 0.1 | (1.9) |
Asset impairment charges | 13.9 | 5.9 | 0 |
Pension and other post-retirement expense | 0.4 | 0.6 | 7.2 |
Pension and other post-retirement contributions | (12.3) | (12.9) | (10.9) |
Changes in assets and liabilities, net of effects of business acquisitions | |||
Accounts and notes receivable | 5.8 | (11.5) | (2.9) |
Inventories | (15.5) | 4.9 | 4.5 |
Other current assets | 1.1 | 1.3 | (1.5) |
Accounts payable | 7.3 | 1.5 | (9) |
Accrued liabilities | 4.8 | 14 | (4.1) |
Other current liabilities | 9.9 | (2) | 0.2 |
Other non-current assets and liabilities | (1.4) | 1.1 | (1.2) |
Net cash provided by operating activities | 63.2 | 38.8 | 20.6 |
Investing activities | |||
Capital expenditures | (13.9) | (10.5) | (16.6) |
Proceeds from sale of property, plant and equipment | 0.1 | 0.1 | 3.4 |
Proceeds from sale of businesses and other | 0 | 0.1 | 0 |
Investments in unconsolidated affiliates | 1.1 | (1) | 1 |
Acquisitions, net of cash acquired | 2.7 | (4.7) | (0.3) |
Net cash used for investing activities | (10) | (16) | (12.5) |
Financing activities | |||
Net (repayments) / drawdowns in short term borrowings | (15.7) | 4.2 | 0 |
Net repayments of long-term borrowings | (21.3) | (13.4) | (8.5) |
Debt issuance costs | 0 | (0.6) | (0.2) |
Deferred consideration paid | (0.8) | (1.4) | 0 |
Proceeds from issue of share capital | 6.6 | 0 | 0 |
Dividends paid | (13.4) | (13.3) | (13.3) |
Share based compensation cash paid | (7.3) | (0.6) | (0.2) |
Repurchases of ordinary shares | 0 | 0 | (7.3) |
Net cash used for financing activities | (51.9) | (25.1) | (29.5) |
Effect of exchange rate changes on cash and cash equivalents | (0.5) | 2 | (1.9) |
Net increase / (decrease) | 0.8 | (0.3) | (23.3) |
Cash, cash equivalents and restricted cash; beginning of year | 13.3 | 13.6 | 36.9 |
Cash, cash equivalents and restricted cash; end of year | 14.1 | 13.3 | 13.6 |
Supplemental cash flow information: | |||
Interest payments | 4.6 | 6.2 | 6.4 |
Income tax payments | $ 2.9 | $ 4.1 | $ 5.4 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Additional paid-in capital | Treasury shares | Own shares held by ESOP | Retained earnings | Accumulated other comprehensive loss | Ordinary shares | Ordinary sharesCommon stock | [1] | Deferred shares | Deferred sharesCommon stock | [2] |
Beginning balance at Dec. 31, 2015 | $ 183.8 | $ 60.3 | $ (1.3) | $ (0.2) | $ 76 | $ (127.2) | $ 25.3 | $ 150.9 | ||||
Beginning balance (in shares) at Dec. 31, 2015 | (100,000) | 0 | ||||||||||
Net income | 17.8 | 17.8 | ||||||||||
Other comprehensive income (loss), net of tax | (31.8) | (31.8) | ||||||||||
Dividends declared and paid | (13.3) | (13.3) | ||||||||||
Share based compensation | 1.2 | 1.2 | ||||||||||
Common shares repurchased and classified as treasury shares | 1 | $ 1 | ||||||||||
Common shares repurchased and classified as treasury shares (in shares) | 100,000 | |||||||||||
Arising from issue of share capital | (6.3) | $ (6.3) | ||||||||||
Arising from issue of share capital (in shares) | (500,000) | |||||||||||
Purchase of shares from ESOP | 0 | (0.6) | $ 0.5 | 0.1 | ||||||||
Utilization of treasury shares to satisfy share based compensation | 0 | (0.9) | $ 0.7 | 0.2 | ||||||||
Ending balance at Dec. 31, 2016 | 150.4 | 60 | $ (7.1) | $ (0.5) | 80.8 | (159) | 25.3 | 150.9 | ||||
Ending balance (in shares) at Dec. 31, 2016 | (600,000) | (100,000) | ||||||||||
Net income | 16.6 | 16.6 | ||||||||||
Other comprehensive income (loss), net of tax | 18.3 | 18.3 | ||||||||||
Dividends declared and paid | (13.3) | (13.3) | ||||||||||
Share based compensation | $ 2.5 | 2.5 | ||||||||||
Common shares repurchased and classified as treasury shares (in shares) | 0 | |||||||||||
Purchase of shares from ESOP | $ 0 | $ 0.8 | $ (0.8) | |||||||||
New shares issued | 100,000 | 100,000 | ||||||||||
Utilization of treasury shares to satisfy share based compensation | 0 | (0.5) | $ 0.5 | |||||||||
Utilization of shares from ESOP to satisfy share based compensation | 0 | (0.4) | $ 0.3 | 0.1 | ||||||||
Utilization of shares from ESOP to satisfy share based compensation (in shares) | 100,000 | |||||||||||
Ending balance at Dec. 31, 2017 | 174.5 | 62.1 | $ (5.8) | $ (1) | 83.7 | (140.7) | 25.3 | 150.9 | ||||
Ending balance (in shares) at Dec. 31, 2017 | (500,000) | (100,000) | ||||||||||
Reclassification of deferred tax | 0 | 0.5 | (0.5) | |||||||||
Net income | 25 | 25 | ||||||||||
Other comprehensive income (loss), net of tax | (5.9) | (5.9) | ||||||||||
Dividends declared and paid | (13.4) | (13.4) | ||||||||||
Share based compensation | $ (2.5) | (2.5) | ||||||||||
Common shares repurchased and classified as treasury shares (in shares) | 0 | |||||||||||
Arising from issue of share capital | $ 0 | $ (1.3) | 1.3 | |||||||||
Arising from issue of share capital (in shares) | (1,900,000) | |||||||||||
Cancellation of deferred shares | 0 | 1 | (1) | |||||||||
Shares sold from ESOP | 6.6 | 6.2 | $ 0.4 | |||||||||
Shares sold from ESOP (in shares) | 500,000 | |||||||||||
Purchase of shares from ESOP | 0 | $ 1.4 | $ (1.4) | |||||||||
New shares issued | 100,000 | 100,000 | 1,863,201 | 0 | ||||||||
Utilization of treasury shares to satisfy share based compensation | 0 | (0.1) | $ 0.1 | |||||||||
Utilization of shares from ESOP to satisfy share based compensation | 0 | (1.1) | $ 1.1 | |||||||||
Ending balance at Dec. 31, 2018 | $ 184.3 | $ 65.6 | $ (4.3) | $ (2.2) | $ 95.3 | $ (146.6) | $ 26.6 | $ 149.9 | ||||
Ending balance (in shares) at Dec. 31, 2018 | (400,000) | (1,600,000) | ||||||||||
[1] | Ordinary share capital includes 29,000,000 shares in 2018, 27,136,799 shares in 2017 and 2016 respectively. | |||||||||||
[2] | Deferred share capital includes 761,835,338,444 shares in 2018, 769,413,708,000 shares in 2017 and 2016 respectively. |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - shares | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Ordinary shares | |||
Common stock, shares outstanding | 29,000,000 | 27,136,799 | 27,136,799 |
Deferred shares | |||
Common stock, shares outstanding | 761,835,338,444 | 769,413,708,000 | 769,413,708,000 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Business description Luxfer Holdings PLC is a global materials technology company specializing in the innovation and manufacture of high-performance materials, components and devices for transportation, defense and emergency response, healthcare and general industrial applications. It comprises two reportable segments being Gas Cylinders and Elektron. Principles of consolidation The consolidated financial statements comprise the financial statements of Luxfer Holdings PLC and its subsidiaries (collectively "we," "our," "Luxfer" ) that we control. Investments in unconsolidated affiliates, where we have the ability to exercise significant influence over the operating and financial policies, are accounted for using the equity method. All inter-company balances and transactions, including unrealized profits arising from intra-Company transactions, have been eliminated in full. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and are presented in U.S. dollars ("USD"). The books of the Company's non-U.S. entities are converted to USD at each reporting period date in accordance with the accounting policy below. The functional currency of the holding company Luxfer Holdings PLC and its U.K. subsidiaries is pounds sterling (GBP), being the most appropriate currency for those particular operations. Fiscal year Our fiscal year ends on December 31. Beginning in the first quarter of 2018, we began reporting our interim quarterly periods on a 13-week basis ending on a Sunday. Prior to the first quarter of 2018 we reported our interim quarterly periods on a calendar quarter basis. Use of estimates The preparation of our consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes, disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates include our accounting for valuation of goodwill, estimated losses on accounts receivable, estimated realizable value on excess and obsolete inventory, cost-to-cost revenue recognition, assets acquired and liabilities assumed in acquisitions, estimated selling proceeds from assets held for sale, contingent liabilities, measurement of contingent consideration, income taxes and pension benefits. Actual results could differ from our estimates. Goodwill and other long-lived assets Business combinations are accounted for using the purchase method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at acquisition date fair value, and the amount of any non-controlling interest in the acquiree. The measurement of non-controlling interest is at fair value and is determined on a transaction by transaction basis. Acquisition costs are expensed as incurred. Goodwill is initially measured at cost, being the excess of the aggregate of the acquisition-date fair value of the consideration transferred and the amount recognized for the non-controlling interest over the net identifiable amounts of the assets acquired and the liabilities assumed in exchange for the business combination. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is tested annually for impairment and is tested for impairment more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test is performed using a two-step process. In the first step, the fair value of each reporting unit is compared with the carrying amount of the reporting unit, including goodwill. If the estimated fair value is less than the carrying amount of the reporting unit there is an indication that goodwill impairment exists and a second step must be completed in order to determine the amount of the goodwill impairment, if any, that should be recorded. In the second step, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to the Company's reporting units that are expected to benefit from the combination. 1. Summary of Significant Accounting Policies (continued) Goodwill and other long-lived assets (continued) Assumptions and judgments are required in calculating the fair value of the reporting units. In developing our discounted cash flow analysis, assumptions about future revenues and expenses, capital expenditures and changes in working capital are based on our annual operating plan and long-term business plan for each of our reporting units. These plans take into consideration numerous factors including historical experience, anticipated future economic conditions, changes in raw material prices and growth expectations for the industries and end markets we participate in. These assumptions are determined over a three year long-term planning period. The three year growth rates for revenues and operating profits vary for each reporting unit being evaluated. Revenues and operating profit beyond 2022 are projected to grow at a perpetual growth rate of 2.2% . Discount rate assumptions for each reporting unit take into consideration our assessment of risks inherent in the future cash flows of the respective reporting unit and our weighted-average cost of capital. We utilized discount rates ranging from 6.4% to 9.1% in determining the discounted cash flows in our fair value analysis. The fair value of the reporting units substantially exceeded the carrying value for all reporting units that have goodwill allocated, except Superform, where an impairment to goodwill has been recognized for the full amount, $1.3 million . A bargain purchase is measured at cost being the excess of the net identifiable amounts of the assets acquired and the liabilities assumed in exchange for the business combination over the aggregate of the acquisition-date fair value of the consideration transferred and the amount recognized for the non-controlling interest, if any. If after reassessing the fair values the conclusion remains that there has been a bargain purchase gain, then any amount of a bargain purchase is recognized immediately as income. Contingent consideration arising as a result of a business combination is recognized at fair value at the acquisition date. Subsequent changes in the fair value of contingent consideration classified as an asset or liability are recorded as either a gain or a loss within acquisition related costs / credits in the consolidated statements of income. Other intangible assets are measured initially at cost, or where acquired in a business combination at fair value, and are amortized on a straight-line basis over their estimated useful lives as shown in the table below. Customer relationships 10 – 15 years Technology and trading related 5 – 25 years The carrying values are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. Reviews are made annually of the estimated remaining lives and residual values of the patents and trademarks. Variable interest entities We have interests in certain joint venture entities that are variable interest entities ("VIEs"). Determining whether to consolidate a VIE may require judgment in assessing (i) whether an entity is a VIE and (ii) if we are the entity's primary beneficiary and thus required to consolidate the entity. To determine if we are the primary beneficiary of a VIE, we evaluate whether we have (i) the power to direct the activities that most significantly impact the VIE's economic performance and (ii) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our evaluation includes identification of significant activities and an assessment of our ability to direct those activities based on governance provisions and arrangements to provide or receive product and process technology, product supply, operations services, equity funding and financing and other applicable agreements and circumstances. Our assessment of whether we are a primary beneficiary of our VIEs requires the application of significant assumptions and judgment. 1. Summary of Significant Accounting Policies (continued) Investments in affiliates The company owns interests in the following affiliates: Name of company Country of incorporation Holding Proportion of voting rights and shares held Classification Consolidation method Luxfer Uttam India Private Limited India Ordinary shares 51% Joint venture (VIE) Equity method Nikkei-MEL Co. Limited Japan Ordinary shares 50% Joint venture Equity method Sub161 Pty Limited Australia Ordinary shares 26.4% Associate (VIE) Equity method We acquired the remaining 51% of the equity of Luxfer Holdings NA, LLC on December 28, 2018, which was previously classified as a 49% owned VIE joint venture. The 100% owned entity is no longer classified as a VIE and is consequently fully consolidated in the closing balance sheet at December 31, 2018. We are not the primary beneficiary for any of the above noted VIEs, and therefore do not consolidate these and use the equity method to account for their results. Property, plant and equipment, net Property, plant and equipment is stated at historic cost less accumulated depreciation and any impairment in value. Depreciation is initially calculated on a straight-line basis over the estimated useful life of the particular asset. The depreciation expense during 2018 , 2017 and 2016 was $17.8 million , $17.0 million and $17.0 million , respectively. As a result of the complexity of our manufacturing process, there is a wide range of plant and equipment in operation. The estimated useful lives is summarized as follows: Freehold buildings 10 - 33 years Leasehold land and buildings The lesser of life of lease or freehold rate Machinery and equipment 3 - 25 years Including: Heavy production equipment (including casting, rolling, extrusion and press equipment) 20 - 25 years Chemical production plant and robotics 7 - 10 years Other production machinery 5 - 10 years Furniture, fittings, storage and equipment 3 - 10 years Computer software 4 - 7 years Freehold land is not depreciated. Reviews are made annually of the estimated remaining lives and residual values of individual productive assets, taking account of commercial and technological obsolescence as well as normal wear and tear. 1. Summary of Significant Accounting Policies (continued) Property, plant and equipment, net (continued) We review the carrying value for any individual asset for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. If any such indication exists and where the carrying value exceeds the estimated recoverable amount, the asset is written-down to its estimated recoverable amount. The assessment of possible impairment is based on our ability to recover the carrying value of the asset or asset group from the expected future pre-tax cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset or asset group, an impairment loss is recognized for the difference between estimated fair value and carrying value. Impairment losses on long-lived assets held for sale are determined in a similar manner, except that fair values are reduced for the cost to dispose of the assets. The measurement of impairment requires us to estimate future cash flows and the fair value of long-lived assets. During 2018 we recorded an impairment of $6.6 million (2017: $1.3 million ) in relation to restructuring activities and $3.4 million (2017: $ nil ) from the fair value adjustment in relation to the sale of the Czech business, recorded in impairment charges. In 2017 we recorded an impairment of $1.5 million as part of an annual exercise to review the use of our long-lived assets. There was no impairment in relation to 2016. Impairments The Company will recognize impairments in relation to property, plant and equipment, investments and goodwill and other long-lived assets in accordance with the above policies. Impairments relating to restructuring activities, incurred to exit an activity or location, will be recorded within the restructuring line on the Statement of Income, other impairments will be recorded within impairment charges line on the Statement of Income. The impairment charges line item predominantly relates to: a fair value adjustment in relation to the sale of the Czech business, $3.4 million ; $ 2.4 m write-off in relation to the acquisition of GTM and $1.3 million of goodwill impairment within the Superform business unit. Revenue Recognition The Company has adopted ASU 2014-09, "Revenue from Contracts with Customers" (Topic 606), and all subsequent amendments using the full retrospective method for all periods presented. The impact to our fiscal quarters and year-ended 2018 , 2017 and 2016 , net income and basic and diluted earnings per share (EPS) was not material. In addition, there was no cumulative impact to our retained earnings at January 1, 2016 . A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. The majority of the Company’s contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. There is no variable consideration or obligations for returns, refunds, and no other related obligations in the Company’s contracts. Payment terms and conditions vary by contract type and may include a requirement of payment in advance. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts do not include a significant financing component. The Company’s revenue is primarily derived from the following sources and are recognized when or as the Company satisfies a performance obligation by transferring a good or service to a customer. Product revenues We recognize revenue when it is realized or realizable and has been earned. Revenue is recognized when persuasive evidence of an arrangement exists, shipment or delivery has occurred (depending on the terms of the sale), which is when the transfer of product or control occurs, our price to the buyer is fixed or determinable, and the ability to collect is reasonably assured. 1. Summary of Significant Accounting Policies (continued) Revenue Recognition (continued) Royalties Royalty revenue is recognized on an accrual basis in accordance with the substance of the relevant agreements, provided that it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably. Tooling revenue Revenue from certain long-term tooling contracts is recognized over the contractual period under the cost-to-cost measure of progress as this is when the benefit is received by the customer. Incremental direct costs associated with the contract include, direct labor hours, direct raw material costs and other associated costs. Under this method, sales and gross profit are recognized as work is performed either based on the relationship between the actual costs incurred and the total estimated costs at completion (“the cost-to-cost method”) or based on efforts for measuring progress towards completion in situations in which this approach is more representative of the progress on the contract than the cost-to-cost method. We record costs and earnings in excess of billings on uncompleted contracts within Other current assets and billings in excess of costs and earnings on uncompleted contracts within Other current liabilities in the Consolidated Balance Sheets. Where customer acceptance is on final completion and handover of the tool, revenue is recognized at the point the customer accepts ownership of the tool. Practical Expedients The Company has applied the transition practical expedient and does not disclose the amount of the transaction price allocated to the remaining performance obligations and an explanation of when the Company expects to recognize that amount as revenue for the fiscal year beginning January 1, 2016. In addition, the Company applies the practical expedient and does not disclose information about remaining performance obligations for contracts that have original expected durations of one year or less. Cash and Cash Equivalents We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Restricted cash is recognized separately in the Consolidated Balance Sheets. Restricted cash balances were $0.3 million at December 31, 2018 and $0.7 million at December 31, 2017 . The $0.3 million in 2018 (2017: $0.4 million ) is held in escrow to disburse environmental liabilities recognized as a result of the acquisition of the Specialty Metals division of ESM Inc in 2017. A further $0.3 million was held in relation to deferred consideration for the same acquisition in 2017. Inventories Inventories are stated at the lower of cost or net realizable value. Raw materials are valued on a first-in, first-out basis. Strategic purchases of inventories in order to secure supply and reduce the impact of price volatility on the cost of inventories are valued on a weighted-average cost basis. Work in progress and finished goods costs comprise direct materials and, where applicable, direct labor costs, an apportionment of production overheads and any other costs that have been incurred in bringing the inventories to their present location and condition. Inventories are reviewed on a regular basis, and we will make allowance for excess or obsolete inventories and write-down to net realizable value based primarily on committed sales prices and our estimates of expected and future product demand and related pricing. Research and Development Included within research and development costs are directly attributable salaries, materials and consumables, as well as third-party contractor fees and research costs. These costs are expensed as incurred. 1. Summary of Significant Accounting Policies (continued) Foreign currencies Transactions in currencies other than an operation's functional currency are initially recorded in the functional currency at the rate of exchange prevailing on the dates of transactions. At each balance sheet date, the foreign currency monetary assets and liabilities of each operation are translated into the functional currency of that operation at the rates prevailing on the balance sheet date. All differences are taken to the consolidated statement of income / (loss), with the exception of differences on foreign currency borrowings that provide a hedge against a net investment in a foreign entity. These differences on foreign currency borrowings are taken directly to equity until the disposal of the net investment, at which time they are recognized in the consolidated statement of income / (loss). Tax charges and credits attributable to exchange differences on those borrowings are also included in equity. On consolidation, the assets and liabilities of the Company's foreign operations are translated at exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average exchange rates for the period. Exchange differences that arise, if any, are included in Accumulated other comprehensive income / (loss) (“AOCI”), a separate component of equity. Such translation differences are recognized in the consolidated statements of income / (loss) in the period in which the Company loses control of the operation or liquidation. During 2018 , the average USD/GBP sterling exchange rate was £0.7509 compared to the 2017 average of £0.7682 . This change resulted in a positive impact of $2.5 million on revenue and $0.2 million on operating income. Based on the 2018 level of revenue and income, a weakening in GBP sterling leading to a £0.05 increase in the USD/GBP sterling exchange rate would result in a decrease of $6.4 million in revenue and $0.5 million in operating net income. During 2018 , the average USD/Euro exchange rate was €0.8472 , compared to the 2017 average of €0.8788 . This change resulted in a positive impact of $0.8 million on revenue and $0.1 million on operating profit. Based on the 2018 level of revenue and income, a weakening in the Euro leading to a €0.05 increase in the Euro to U.S. dollar exchange rate would result in a decrease of $1.1 million in revenue and no change to operating profit. Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. When the Company does not believe that, on the basis of available information, it is more likely than not that deferred tax assets will be fully recovered, it recognizes a valuation allowance against its deferred tax assets to reduce the deferred tax assets to the amount more likely than not to be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactments date. Furthermore, a tax benefit from a tax position may be recognized in the financial statements only if it is more-likely-than-not that the position is sustainable, based solely on its technical merits and consideration of the relevant tax authority’s widely understood administrative practices and precedents. The tax benefit recognized, when the likelihood of realization is more likely-than-not (i.e. greater than 50 percent), is measured at the largest amount that is greater than 50 percent likely of being realized upon settlement. Employee benefit plans The Company operates funded defined benefit pension plans in the U.K., the U.S. and France. The levels of funding are determined by periodic actuarial valuations that take into account changes in actuarial assumptions, including discount rates and expected returns on plan assets. The assets of the plans are generally held in separate trustee-administered funds. The Company also operates defined contribution plans in the U.K., the U.S., Australia and Canada. 1. Summary of Significant Accounting Policies (continued) Employee benefit plans (continued) Actuarial assumptions are updated annually and are disclosed in Note 12. We recognize changes in the fair value of plan assets and net actuarial gains or losses for pension and other post-retirement benefits annually in the fourth quarter each year (“mark-to-market adjustment”) and, if applicable, in any quarter in which an interim remeasurement is triggered. Net actuarial gains and losses occur when the actual experience differs from any of the various assumptions used to value our pension and other post-retirement plans or when assumptions change, as they may each year. The remaining components of pension expense, including service and interest costs and estimated return on plan assets, are recorded on a quarterly basis. Payments to defined contribution plans are charged as an expense as they fall due. Commitments and contingencies Loss contingencies are recognized when the Company has a present obligation as a result of a past event, it is probable that a transfer of resources will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Share-based compensation We account for share-based compensation awards on a fair value basis. The estimated grant date fair value of each option award is recognized in income on an accelerated basis over the requisite service period (generally the vesting period). The estimated fair value of each option award is calculated using the Black-Scholes option-pricing model, which is subjective and involves the application of significant estimates and assumptions, including the expected term of the award, implied volatility, expected dividend yield and the risk-free interest rate. Restricted share awards and units are recorded as compensation cost on an accelerated basis over the requisite service periods based on the market value on the date of the grant. Performance share units ("PSU") are stock awards where the ultimate number of shares issued will be contingent on the Company's performance against certain financial performance targets. The fair value of each PSU is based on the market value on the date of grant. We recognize expense based upon the fair value of the awards on the grant date and the estimated vesting of the PSUs granted. The estimated vesting of the performance share units is based on the probability of achieving certain financial performance thresholds over the specified performance period. Trade receivables and concentration of credit risk We record an allowance for doubtful accounts, reducing our receivables balance to an amount we estimate is collectible from our customers. Estimates used in determining the allowance for doubtful accounts are based on current trends, aging of accounts receivable, periodic credit evaluations of our customers’ financial condition, and historical collection experience. We are exposed to credit risk in the event of nonpayment by customers. However we mitigate our exposure to credit risk by performing ongoing credit evaluations and, when deemed necessary, utilizing credit insurance, prepayments or guarantees. No individual customer represented more than 10% of our revenue or accounts receivable. The concentration of credit risks from financial instruments related to the markets we serve is not expected to have a material adverse effect on our consolidated financial position, cash flows or future results of operations. 1. Summary of Significant Accounting Policies (continued) Derivative financial instruments We recognize all derivatives as either assets or liabilities (within accounts and other receivables, accounts payable, other non-current assets and other non-current liabilities) at fair value in our Consolidated Balance Sheets. If the derivative is designated and is effective as a cash-flow hedge, changes in the fair value of the derivative are recorded in AOCI as a separate component of equity in the Consolidated Statements of Changes in Equity and are recognized in cost of goods sold in the Consolidated Statements of Income / (loss) when the hedged item affects earnings. If the underlying hedged transaction ceases to exist or if the hedge becomes ineffective, all changes in fair value of the related derivatives that have not been settled are recognized in current earnings in cost of goods sold. For a derivative that is not designated as or does not qualify as a hedge, changes in fair value are reported in income immediately, again in cost of goods sold. We use derivative instruments for the purpose of hedging commodity price risk and currency exposures, which exist as part of ongoing business operations. New accounting standards The Company adopted ASU 2017-07 (Topic 715), "Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-Retirement Benefit Cost," on January 1, 2017. The standard was amended to include guidance on the presentation of net periodic pension and post-retirement benefit cost (net benefit cost) and (ii) requires the service cost component to be presented with other employee compensation costs in net income / (loss) or when eligible capitalized in assets. As no service costs were capitalized as part of the net benefit cost, we adopted the new standard on a retrospective basis. The Company adopted ASU 2014-09 "Revenue from Contracts with Customers" ASC Topic 606, and all subsequent amendments on January 1, 2016. The standard outlines a five-step model whereby revenue is recognized as performance obligations within a contract are satisfied. The standard also requires new, expanded disclosures regarding revenue recognition. We adopted the new standard using the full retrospective transition method for all periods presented. Accounting standards which have been early adopted Under U.S. GAAP, shares withheld by the company to pay the employees statutory minimum tax can still be classified as equity awards if all other criteria for such classification are met. Upon adoption of ASU 2016-09, an award containing a net settled tax withholding clause could be equity-classified so long as the arrangement limits tax withholding to the maximum individual statutory tax rate in a given jurisdiction. If tax withholding is permitted at some higher rate, then the whole award would be classified as a liability. Accounting standards issued but not yet effective In June 2016, the Financial Accounting Standards Board ("FASB") issued new accounting requirements regarding the measurement of credit losses on financial instruments, along with additional qualitative and quantitative disclosures. The new standard is effective for fiscal years beginning after December 15, 2019. The Company anticipates that the timing of the recognition of impairments to accounts, notes and other receivables will change rather than the size of the balance. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ASU 2016-02, “Leases” (“ASU 2016-02”). ASU 2016-02 requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Additionally, ASU 2016-02 modifies current guidance for lessors' accounting. ASU 2016-02 is effective for interim and annual reporting periods beginning on or after January 1, 2019, with early adoption permitted. Upon adoption, the Company recognized lease liabilities and the corresponding right-of-use assets (at the present value of future payments) for predominantly all of its future minimum commitments under operating leases in place at that time. At January 1, 2019, adoption of ASU 2016-02 resulted in an increase of $15.6 million on its assets and liabilities in its statement of financial position. ASU 2016-02 did not have a material impact on its results of operations or cash flows. In addition to the guidance in ASU 2016-02, the Company has evaluated ASU 2018-11, which was issued in July 2018, and provides an optional transitional method. As a result of this evaluation, the Company elected to use the optional transitional method, which allows companies to use the effective date as the date of initial application on transition and not adjust comparative period financial information or make the new required disclosures for periods prior to the effective date. Additionally, the Company elected to use the package of practical expedients permitted under the transition guidance within the new standard. |
Acquisitions and disposals
Acquisitions and disposals | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions and disposals | Acquisitions and disposals On December 28, 2018, Luxfer Holdings NA LLC (a 49% owned VIE joint venture) disposed of the assets and selected liabilities of Gas Transport Leasing LLC (its wholly-owned subsidiary) with the remaining 51% of Luxfer Holdings NA LLC simultaneously acquired by the Company. The disposal of the assets and selected liabilities to the JV partner was for consideration of $2.2 million . The Company acquired the residual 51% of Luxfer Holdings NA LLC, in return for the forgiveness of the JV partner's share on a loan from Luxfer Holdings PLC, being $2.1 million . The fair value of the net assets of Luxfer Holdings NA LLC at the acquisition date was assessed as $4.0 million , valuing the residual 51% stake at $2.1 million , resulting in no goodwill being recognized on the step acquisition. The principal assets acquired include cash of $2.7 million (including $2.2 million from the sale of the leasing business), inventory ( $1.1 million ), accounts and other receivables ( $0.8 million ), property, plant and equipment ( $0.2 million ), with accounts payable of $0.8 million . There were no identified intangibles. As a consequence of the transaction we fully impaired our equity investment (from a pre-acquisition fair value of $1.6 million ) and partially impaired the loan to the equity investment; the combined effect resulting in a net charge of $2.4 million being recognized in the consolidated statement of income, within impairment charges. At December 31, 2018, Luxfer Holdings NA LLC is 100% owned by the Company, is no longer considered a VIE and is a fully consolidated subsidiary. As the acquisition occurred very close to the year end date, no revenue or earnings are recorded in the consolidated statement of income for the reporting period. On December 5, 2017, the Company acquired the trade and assets of the Specialty Metals business of ESM Group Inc., incorporating a manufacturing facility in Saxonburg, PA. The plant manufactures a range of magnesium-based chips, granules, ground powders and atomized powders. The acquired business was integrated with Luxfer’s existing business that currently offers similar products under the Luxfer Magtech brand. On closing, an initial consideration of $4.3 million was paid as well as an amount placed in general escrow of $0.3 million as deferred consideration. An additional $0.4 million , which has not been included as part of the purchase consideration, was placed in escrow for disbursement of environmental liabilities. The fair value of net assets acquired was assessed as $5.8 million , resulting in a gain on bargain purchase of $1.2 million , which was recorded in the consolidated statements of income / (loss) within the Acquisition related costs line item. The principal assets acquired are land and buildings, $2.0 million ; plant and equipment, $3.2 million ; and inventory, $0.7 million ; with assumed liabilities of $0.1 million . No separately identifiable intangibles were identified. The gain on bargain purchase resulted because the Specialty Metals business was not considered to be part of ESM Group's core business activities as it has adopted a strategy to focus on its steel industry customers. In implementing this strategy, ESM Group was eager to divest this non-core business, which was reflected in the transaction price. The Group believes that it can extract additional value from the site due to synergies with our existing Luxfer Magtech business. In addition to the purchase consideration, $0.5 million of acquisition-related costs were incurred and a $0.4 million provision was set up for the disbursement of the environmental liabilities. Deferred consideration The deferred consideration of $0.3 million for the acquisition of the Specialty Metals business was shown in the balance sheet at December 31, 2017, within other current liabilities. Deferred contingent consideration The deferred contingent consideration is in relation to the acquisition of Truetech and Innotech, (Luxfer Magtech) in 2015 and is linked to the future profitability of the entity. Where appropriate, this is payable annually from 2015 to 2020. The deferred contingent consideration totaled $0.9 million at December 31, 2018 ( 2017 : $0.7 million ), following a remeasurement of deferred contingent consideration at the year-end based upon the estimated future cash flows and the weighted probability of those cash flows being achieved, resulting in a debit to the consolidated income statement of $0.9 million ( 2017 : $1.0 million ), net of an unwind of discount on deferred contingent consideration of $0.2 million ( 2017 : $0.2 million ). The entire consideration is deemed to be current (2017: $0.5 million ) and shown on the balance sheet within other current liabilities, as it is based on the performance of Luxfer Magtech for the year ending December 31, 2018 . The potential undiscounted future payment has been estimated at $0.9 million (2017: $0.7 million ). The maximum undiscounted amount payable under the sale agreement is $10.0 million . 2. Acquisitions and disposals ( continued ) Years ended December 31, In millions 2018 2017 Net cash flows on purchase of business: Included in net cash flows from investing activities: Consideration paid $ — $ (4.3 ) Cash receipt on disposal of business — 0.1 Acquisition and disposal costs paid — (0.5 ) Cash acquired 2.7 — Net cash flows on purchase of business $ 2.7 $ (4.7 ) Years ended December 31, In millions 2018 2017 Net cash flows on purchase of business: Included in net cash flows from financing activities: Deferred consideration paid $ (0.8 ) $ (1.4 ) Net cash flows on purchase of business $ (0.8 ) $ (1.4 ) |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share Basic earnings per share are computed by dividing net income for the period by the weighted-average number of ordinary shares outstanding, net of Treasury shares and shares held in ESOP. Diluted earnings per share are computed by dividing net income for the period by the weighted average number of ordinary shares outstanding and the dilutive ordinary shares equivalents. Basic and diluted earnings per share were calculated as follows: Years ended December 31, In millions except share and per-share data 2018 2017 2016 Basic earnings: Net income $ 25.0 $ 16.6 $ 17.8 Weighted average number of £0.50 ordinary shares: For basic earnings per share 26,708,469 26,460,947 26,443,662 Dilutive effect of potential common stock 983,793 263,034 210,976 For diluted earnings per share 27,692,262 26,723,981 26,654,638 Earnings per share using weighted average number of ordinary shares outstanding: Basic earnings per ordinary share $ 0.94 $ 0.63 $ 0.67 Diluted earnings per ordinary share $ 0.90 $ 0.62 $ 0.67 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Disaggregated revenue disclosures for the fiscal years ended December 31, 2018 , December 31, 2017 , and December 31, 2016 , are included below and in Note 15, Segmental Information. Years ended December 31, 2018 2017 2016 In millions Gas Cylinders Elektron Total Gas Cylinders Elektron Total Gas Cylinders Elektron Total General industrial $ 50.7 $ 123.9 $ 174.6 $ 49.6 $ 95.6 $ 145.2 $ 45.7 $ 85.7 $ 131.4 Transportation 79.0 72.8 151.8 63.8 66.5 130.3 72.9 62.9 135.8 Defense and emergency 79.3 49.4 128.7 76.5 54.1 130.6 83.1 36.2 119.3 Healthcare 29.1 3.7 32.8 30.3 4.9 35.2 24.1 4.2 28.3 $ 238.1 $ 249.8 $ 487.9 $ 220.2 $ 221.1 $ 441.3 $ 225.8 $ 189.0 $ 414.8 The Company’s performance obligations are satisfied over time as work progresses or at a point in time. Design and tooling arrangements are the only contracts for which revenue is recognized over time. Revenue from these sources combined accounted for less than 3% of the Company’s revenue for the fiscal years ended December 31, 2018 , and December 31, 2017 , respectively. All consideration from contracts with customers is included in these amounts. The following table provides information about contract receivables, contract assets and contract liabilities from contracts with customers: In millions December 31, 2018 December 31, 2017 Contract receivables $ 1.5 $ 1.6 Contract assets 2.1 4.6 Contract liabilities (1.1 ) (0.9 ) Contract assets consist of $2.1 million accrued unbilled amounts relating to tooling revenue and are recognized in prepayments and accrued income in the consolidated balance sheets. All contract assets recognized as of December 31, 2017 , of $4.6 million were billed to customers and transferred to receivables as of December 31, 2018 . Contract assets recognized as of December 31, 2016 , of $3.6 million were billed to customers and transferred to receivables in the fiscal year ending December 31, 2017 . Contract liabilities of $1.1 million consist of advance payments and billing above costs incurred and are recognized as other current liabilities . Significant changes in contract liabilities balances during the period are as follows: In millions 2018 2017 As at January 1, $ (0.9 ) $ (0.2 ) Payments received / amounts billed (3.8 ) (2.2 ) Costs incurred / revenue recognized 3.6 1.5 As at December 31, $ (1.1 ) $ (0.9 ) |
Restructuring
Restructuring | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring During 2018 , 2017 and 2016 , we initiated and continued execution of certain business restructuring initiatives aimed at reducing our fixed cost structure and realigning our business. In 2018, the restructuring charge included an other-than-temporary impairment and employee severance charges in the Gas Cylinders segment in relation to the Company's announcement that it was under consultation to close its French site. There is an expectation that further costs will be incurred in 2019. Within the Elektron segment, there have been asset write-downs in connection to the closure of our Luxfer Graphic Arts site in Findlay, OH, with consolidation of operations in Madison, IL; and the previously announced closure of our Luxfer Magtech site in Riverhead, NY (see below). The 2017 initiative included costs incurred in the Gas Cylinders segment following the decision to discontinue our Advanced Oxygen System (AOS) product line and the announced closure of our Luxfer HEI business. In the Elektron Segment, we announced the closure of our Luxfer Magtech site in Riverhead, NY, with consolidation of operations in Cincinnati OH. There was also a Company-wide effort to reduce headcount and streamline management, which contributed to the increase in severance and related costs in the year. In 2016, costs were incurred in the Elektron segment relating to severance across a small number of locations as we commenced our general headcount reduction initiative. Restructuring related costs included in Restructuring charges in the Consolidated statement of income / (loss) are as follows: Years ended December 31, In millions 2018 2017 2016 Severance and related costs $ (6.7 ) $ (4.6 ) $ (0.4 ) Asset impairment (6.8 ) (2.3 ) — Other 0.1 (1.5 ) — Total restructuring charges $ (13.4 ) $ (8.4 ) $ (0.4 ) Other restructuring costs primarily consist of various contract termination and revision costs as well as legal costs. Restructuring costs by reportable segment were as follows: Years ended December 31, In millions 2018 2017 2016 Gas Cylinders segment $ (10.0 ) $ (2.9 ) $ — Elektron segment (3.4 ) (5.5 ) (0.4 ) Total restructuring charges $ (13.4 ) $ (8.4 ) $ (0.4 ) Activity related to restructuring, recorded in other current liabilities in the consolidated balance sheets is summarized as follows: In millions 2018 2017 Balance at January 1, $ 2.1 $ 0.8 Costs incurred 6.6 6.1 Cash payments and other (3.5 ) (4.8 ) Balance at December 31, $ 5.2 $ 2.1 |
Goodwill and other identifiable
Goodwill and other identifiable intangible assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other identifiable intangible assets | Goodwill and other identifiable intangible assets Changes in goodwill during the years ended December 31, 2018 and 2017 were as follows: In millions Gas Cylinders Elektron Total At January 1, 2017 $ 27.0 $ 40.9 $ 67.9 Exchange difference 2.0 1.3 3.3 At December 31, 2017 $ 29.0 $ 42.2 $ 71.2 Impairment (1.3 ) — (1.3 ) Exchange difference (1.4 ) (0.9 ) (2.3 ) Net balance at December 31, 2018 $ 26.3 $ 41.3 $ 67.6 Accumulated goodwill impairment losses were $9.6 million as of December 31, 2018 and $8.3 million as of December 31, 2017 , with the difference due to an impairment of goodwill in 2018 associated with our Superform business. In 2018 , a goodwill impairment loss of $1.3 million has been recognized in our Gas Cylinders segment in relation to our Superform business unit. As part of the annual impairment review, the present value of future cashflows of the business unit were below the carrying value of the goodwill due to productivity challenges within the business. Identifiable intangible assets consisted of the following: December 31, 2018 December 31, 2017 In millions Gross Accumulated amortization Net Gross Accumulated amortization Net Customer relationships $ 13.4 $ (3.8 ) $ 9.6 $ 13.4 $ (2.9 ) $ 10.5 Technology and trading related 7.9 (2.9 ) 5.0 8.6 (3.0 ) 5.6 $ 21.3 $ (6.7 ) $ 14.6 $ 22.0 $ (5.9 ) $ 16.1 Identifiable intangible asset amortization expense in 2018 , 2017 and 2016 was $1.2 million , $1.3 million and $1.1 million , respectively. In 2017, we recorded, within restructuring charges, an impairment charge of $0.5 million in the Gas Cylinders segment for technology and trading related intangibles following the announcement to exit our Luxfer HEI business. Intangible asset amortization expense over the next five years is expected to be approximately $1.2 million in 2019, $1.1 million in 2020, $1.1 million in 2021, $1.1 million in 2022 and $1.1 million in 2023. |
Supplementary balance sheet inf
Supplementary balance sheet information | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplementary balance sheet information | Supplementary balance sheet information In millions 2018 2017 Accounts and other receivables Trade receivables $ 49.8 $ 53.8 Related parties 0.9 1.8 Prepayments and accrued income 7.7 10.5 Derivative financial instruments 0.1 2.1 Other receivables 4.2 4.2 Total accounts and other receivables $ 62.7 $ 72.4 Inventories Raw materials and supplies $ 30.5 $ 31.0 Work-in-process 33.1 28.1 Finished goods 30.0 23.1 Total inventories $ 93.6 $ 82.2 Other current assets Held-for-sale assets $ 10.7 $ — Income tax receivable — 1.2 Total other current assets $ 10.7 $ 1.2 Property, plant and equipment, net Land, buildings and leasehold improvements $ 73.3 $ 80.8 Machinery and equipment 286.0 292.7 Construction in progress 10.1 6.7 Total property plant and equipment 369.4 380.2 Accumulated depreciation and impairment (262.5 ) (251.1 ) Total property, plant and equipment, net $ 106.9 $ 129.1 Other non-current assets Derivative financial instruments $ — $ 0.3 Total other non-current assets $ — $ 0.3 Current maturities of long-term debt and short-term borrowings Bank and other loans $ — $ 15.0 Overdrafts 3.5 4.2 Total current maturities of long-term debt and short-term borrowings $ 3.5 $ 19.2 Other current liabilities Contingent liabilities $ 5.3 $ 2.8 Held-for-sale liabilities 2.5 — Derivative financial instruments — 1.5 Other current liabilities 4.1 2.1 Total other current liabilities $ 11.9 $ 6.4 Other non-current liabilities Contingent liabilities $ 0.8 $ 1.1 Derivative financial instruments — 0.4 Other non-current liabilities 0.5 1.7 Total other non-current liabilities $ 1.3 $ 3.2 7. Supplementary balance sheet information (continued) Impairment of property, plant and equipment Property, plant and equipment, net, includes an impairment of $6.6 million recognized within restructuring charges in 2018 (2017: $2.8 million ) of which $1.5 million (2017: $1.3 million ) relates to the write-down of land and buildings within the Elektron segment as a result of announced exits, and $5.1 million (2017: $1.5 million ) relates to rationalization activity in the Gas Cylinders segment. Held-for-sale assets During 2018, two buildings valued at $4.7 million , within our Elektron Segment are classified as held-for-sale assets, presented within other current assets. The buildings are part of separate site closures announced in 2017 (Riverhead, NY) and early 2018 (Findlay, OH) and are readily available for sale. The buildings have been 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. We expect the sale of the properties to be completed in the first half of 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 is 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 and has been allocated to property, plant and equipment. We expect the transaction to complete 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, 2018 In millions Property, plant and equipment $ 5.5 Inventory 2.9 Accounts and other receivables 2.3 Held-for-sale assets $ 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. There were no held-for-sale assets or liabilities at December 31, 2017. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Components of Accumulated Other Comprehensive Loss consist of the following: In millions December 31, 2018 December 31, 2017 Cumulative translation adjustments $ (55.6 ) $ (49.2 ) Pension plans actuarial loss, net of tax (90.2 ) (91.3 ) Change in market value of derivative financial instruments, net of tax (0.8 ) (0.2 ) Accumulated other comprehensive loss $ (146.6 ) $ (140.7 ) |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt outstanding was as follows: In millions December 31, 2018 December 31, 2017 6.19% Loan Notes due 2018 $ — $ 15.0 3.67% Loan Notes due 2021 25.0 25.0 4.88% Loan Notes due 2023 25.0 25.0 4.94% Loan Notes due 2026 25.0 25.0 Revolving credit facility — 21.3 Other - Bank overdraft 3.5 4.2 Unamortized debt issuance costs (1.4 ) (1.7 ) Total debt $ 77.1 $ 113.8 Less current portion $ (3.5 ) $ (19.2 ) Non-current debt $ 73.6 $ 94.6 On July 31, 2017, an extension to the Senior Facilities Agreement was agreed which provides $150 million in committed debt facilities, in the form of a multi-currency revolving credit facility, with an additional $50 million of uncommitted facilities through an accordion provision. The Senior Facilities Agreement was due to mature in April 2019, but has now been extended until the end of July 2022. Finance costs of $1.0 million were capitalized following this extension. The loan amendment has been treated, in part, as an extinguishment and new loan, as some of the lenders left the consortium, with the other portion deemed to be a modification of the existing facility. The Senior Facility Agreement bears interest equal to a margin based upon the Company's leverage plus either EURIBOR or LIBOR, depending on the currency drawn down. The weighted-average interest rate on the revolving credit facility was 3.58% and 3.05% in 2018 and 2017, respectively. The maturity profile of the Company's debt, excluding unamortized issuance costs and discounts is as follows: In millions 2019 2020 2021 2022 2023 Thereafter Total Loan Notes due 2021 $ — $ — $ 25.0 $ — $ — $ — $ 25.0 Loan Notes due 2023 — — — — 25.0 — 25.0 Loan Notes due 2026 — — — — — 25.0 25.0 Other 3.5 — — — — — 3.5 Total debt $ 3.5 $ — $ 25.0 $ — $ 25.0 $ 25.0 $ 78.5 9. Debt (continued) Loan notes due and shelf facility The Note Purchase and Private Shelf Agreement contains the same customary covenants and events of default as for the Note Purchase Agreement. The Note Purchase and Private Shelf Agreement also requires us to maintain compliance with the same interest and leverage ratios as for the Note Purchase Agreement. Amounts drawn under the Shelf Facility in June 2016 were used to facilitate an extension of the maturity of $50 million of the outstanding principal amount of the Loan Notes due 2018. We have been in compliance with the covenants under the Note Purchase and Private Shelf Agreement throughout all of the quarterly measurement dates from and including September 30, 2014, to December 31, 2018 . The Loan Notes due 2021, 2023 and 2026, the Shelf Facility and the Note Purchase and Private Shelf Agreement are governed by the law of the State of New York. Senior Facilities Agreement The Senior Facilities Agreement contains a number of additional undertakings and covenants that, among other things, restrict, subject to certain exceptions, our and our subsidiaries' ability to: • engage in mergers, divestitures, consolidations or divisions; • change the nature of our business; • make certain acquisitions; • participate in certain joint ventures; • grant liens or other security interests on our assets; • sell, lease, transfer or otherwise dispose of assets, including receivables; • enter into certain non-arm's-length transactions; • grant guarantees; • pay off certain existing indebtedness; • make investments, loans or grant credit; • repurchase our shares; • issue shares or other securities; and • redeem, repurchase, decease, retire or repay any of our share capital. We are permitted to dispose of assets up to $25 million in aggregate until July 2022, without restriction as to the use of the proceeds under the Senior Facilities Agreement. Above this level, we would need to seek agreement from the majority of the lenders under the Senior Facilities Agreement. In addition, we may pay dividends, subject to certain limitations. In addition, the Senior Facilities Agreement requires us to maintain compliance with an interest coverage ratio and a leverage ratio. The interest coverage ratio measures our EBITDA (as defined in the Senior Facilities Agreement) to Net Finance Charges (as defined in the Senior Facilities Agreement). We are required to maintain a minimum interest coverage ratio of 4.0 :1. The leverage ratio measures our Total Net Debt (as defined in the Senior Facilities Agreement) to the Relevant Period Adjusted Acquisition EBITDA (as defined in the Senior Facilities Agreement). We are required to maintain a leverage ratio of no more than 3.0 :1. Any breach of a covenant in the Senior Facilities Agreement could result in a default under the Senior Facilities Agreement, in which case lenders could elect to declare all borrowed amounts immediately due and payable if the default is not remedied or waived within any applicable grace periods. Additionally, our and our subsidiaries' ability to make investments, incur liens and make certain restricted payments is also tied to ratios based on EBITDA. We have been in compliance with the covenants under the Senior Facilities Agreement throughout all of the quarterly measurement dates from and including September 30, 2011, to December 31, 2018 . |
Derivatives and Financial Instr
Derivatives and Financial Instruments | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Financial Instruments | Derivatives and Financial Instruments The Company's financial instruments comprise bank and other loans, senior loan notes, derivatives, trade payables deferred and deferred contingent consideration. Other than derivatives, the main purpose of these financial instruments is to raise finance for the Company's operations. The Company also has various financial assets such as trade receivables and cash and cash equivalents, which arise directly from its operations. Derivative financial instruments We are exposed to market risk during the normal course of business from changes in currency exchange rates, interest rates and commodity prices such as aluminum prices. We manage exposures through a combination of normal operating and financing activities and through the use of derivative financial instruments such as foreign currency forward purchase contracts and aluminum forward purchase contracts. We do not use market risk-sensitive instruments for trading or speculative purposes. In 2018, the Company had $0.1 million (2017: $2.1 million ) derivative financial instruments disclosed within accounts and other receivables and nil (2017: $0.3 million ) within other non-current assets. There were no derivative financial instruments recorded in liabilities in 2018 (2017: $1.5 million in other current liabilities and $0.4 million in other non-current liabilities). At December 31, 2018, the fair value of forward foreign currency exchange contracts deferred in equity was a loss of $0.4 million (2017: loss of $0.7 million and 2016: loss of $3.1 million ). During 2018, a loss of $0.1 million (2017: gain of $0.6 million and 2016: loss of $0.9 million ) has been transferred to the consolidated income statement in respect of contracts that have matured in the year. Aluminum forward purchase contracts A luminum is traded on the London Metal Exchange ("LME") and therefore the Group is able to use LME derivative contracts to hedge a portion of its price exposure. In 2018 the Group purchased approximately 11,500 (2017: 12,500 ) metric tons of primary aluminum. The processed waste can be sold as scrap aluminum at prices linked to the LME price. The price risk on aluminum is mitigated by the use of LME derivative contracts. At December 31, 2018 , the Company had hedged nil (2017: 32% ) of its main primary aluminum requirements for 2019, being 3,300 (2018: 3,000 ) metric tonnes. Before hedging the risk, a $100 increase in the LME price of aluminum would increase our Gas Cylinders segment's costs by approximately $1.1 million . Forward foreign currency exchange contracts The Company incurs currency transaction risk whenever one of the Company's operating subsidiaries enters into either a purchase or sales transaction in a currency other than its functional currency. Currency transaction risk is reduced by matching sales and expenses in the same currency. The Company's U.S. operations have little currency exposure as most purchases, costs and sales are conducted in U.S. dollars. The Company's U.K. operations are exposed to exchange transaction risks, mainly because these operations sell goods priced in euros and U.S. dollars, and purchase raw materials priced in U.S. dollars. The Company also incurs currency transaction risk if it lends currency other than its functional currency to one of its joint venture partners. At December 31, 2018 and 2017 , the Company held various forward foreign currency exchange contracts designated as hedges in respect of forward sales for U.S. dollars, euros and Australian dollars for the receipt of GBP sterling or euros. The Company also held forward foreign currency exchange contracts designated as hedges in respect of forward purchases for U.S. dollars by the sale of GBP sterling. The contract totals in GBP sterling and euros, range of maturity dates and range of exchange rates are disclosed below, with the value denominated in GBP sterling given that is the currency the majority of the contracts are held in. 10. Derivatives and Financial Instruments (continued) Fair value of financial instruments (continued) December 31, 2018 Sales hedges U.S. dollars Euros Contract totals/£m 4.8 7.2 Maturity dates 01/19 to 07/19 01/19 to 07/19 Exchange rates $1.2519 to $1.3419 €1.0949 to €1.1702 Purchase hedges U.S. dollars Euros Canadian dollars Czech koruna Contract totals/£m 7.5 1.7 2.9 0.1 Maturity dates 01/19 to 07/19 01/19 to 06/19 01/19 to 03/19 01/19 Exchange rates $1.2609 to $1.3380 €1.1074 to €1.1221 $1.7039 to $1.7416 CZK 28.4490 December 31, 2017 Sales hedges U.S. dollars Euros Australian dollars Contract totals/£m 17.1 27.5 2.8 Maturity dates 01/18 to 07/19 01/18 to 07/19 06/18 Exchange rates $1.2433 to $1.3444 €1.0949 to €1.1803 $1.7667 Purchase hedges U.S. dollars Euros Australian dollars Contract totals/£m 12.5 0.1 1.7 Maturity dates 01/18 to 07/19 01/18 06/18 Exchange rates $1.2414 to $1.3389 €1.1084 1.7161 The above contracts are held in GBP sterling, therefore the analysis in the table has been given in GBP sterling to avoid any movements as a result of translation. Fair value of financial instruments The following methods were used to estimate the fair values of each class of financial instrument: Cash at bank and in hand / overdrafts The carrying value approximates to the fair value as a result of the short-term maturity of the instruments. Cash at bank and in hand are subject to a right to offset in the U.S. Overdrafts At December 31, 2018 , the Company had overdrafts of $3.5 million (2017: $4.2 million ), which are disclosed within other current liabilities with its carrying value being equal to its fair value. All of the balance at December 31, 2018 and 2017 is subject to variable interest rate and subject to floating interest rate risk. Bank loans At December 31, 2018 , bank and other loans of $75.0 million ( 2017 : $111.3 million ) were outstanding. At December 31, 2018 , bank and other loans are shown net of issue costs of $1.4 million ( 2017 : $1.7 million ), and these issue costs are to be amortized to the expected maturity of the facilities. This carrying value is equal to to its fair value. At December 31, 2018 , none ( 2017 : $21.3 million ) of the total $75.0 million ( 2017 : $111.3 million ) bank and other loans was variable interest rate debt and subject to floating interest rate risk, with the remainder being fixed rate debt. 10. Derivatives and Financial Instruments (continued) Fair value measurements Forward foreign currency exchange rate contracts The fair value of these contracts was calculated by determining what the Company would be expected to receive or pay on termination of each individual contract by comparison to present market prices. LME derivative contracts The fair value of these contracts has been calculated by valuing the contracts against the equivalent forward rates quoted on the LME. Deferred contingent consideration Disclosure of the basis of calculation of the fair value of deferred contingent consideration is included within Note 2 of the consolidated financial statements. Deferred consideration The deferred consideration is a fixed amount that was determinable at the date of the acquisition of the Specialty Metals business and paid in 2018. The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique: Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities. Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly. Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data. The fair values of the financial instruments of the Group at December 31, 2018 , were analyzed using the hierarchy as follows: In millions Total Level 1 Level 2 Level 3 Derivative financial assets: Foreign currency contract assets $ 0.1 $ — $ 0.1 $ — Interest bearing loans and borrowings: Loan Notes due 2021 (24.8 ) — (24.8 ) — Loan Notes due 2023 (25.9 ) — (25.9 ) — Loan Notes due 2026 (26.4 ) — (26.4 ) — Other financial liabilities: Deferred contingent consideration (0.9 ) — — (0.9 ) The following table presents the changes in Level 3 instruments for the year ended December 31, 2018 . In millions 2018 Balance at January 1 $ 1.0 Payments made during year (0.8 ) Unwind of discount on deferred consideration (0.2 ) Remeasurement of deferred consideration (recognized in acquisition-related costs) 0.9 Balance at December 31 $ 0.9 Total losses for the period included in profit and loss for assets held at the end at December 31 0.7 Change in unrealized (gains) or losses for the period included in profit and loss for assets held at the end at December 31 $ 0.7 The deferred contingent consideration relates to estimates of amounts payable in the future regarding acquisitions made in prior years. This deferred contingent consideration is based upon an estimate of the future profitability of the businesses versus targets agreed upon as part of the acquisitions. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before income taxes consisted of the following: Years ended December 31, In millions 2018 2017 2016 U.K. $ 26.2 $ (3.0 ) $ 13.1 International (1) 4.3 22.9 11.5 Income before income taxes $ 30.5 $ 19.9 $ 24.6 (1) "International" reflects non-U.K. income before income taxes. The provision for income taxes consisted of the following: Years ended December 31, In millions 2018 2017 2016 Currently payable U.K. $ 0.2 $ (0.2 ) $ 0.3 International (1) 5.1 6.2 3.6 Total current taxes $ 5.3 $ 6.0 $ 3.9 Deferred U.K. $ 3.4 $ (0.1 ) $ 3.4 International (1) (3.2 ) (2.6 ) (0.5 ) Total deferred taxes $ 0.2 $ (2.7 ) $ 2.9 Total provision for income taxes $ 5.5 $ 3.3 $ 6.8 (1) "International" reflects non-U.K. income before income taxes. Differences between the financial reporting and the corresponding tax basis of assets and liabilities and the different income tax rates and laws applicable to the Company, among other factors, give rise to permanent differences between the statutory tax rate applicable in the U.K. and the effective tax rate presented in the consolidated income statement, which in 2018 , 2017 and 2016 were as follows: Years ended December 31, In millions 2018 2017 2016 Income before income taxes $ 30.5 $ 19.9 $ 24.6 Provision for income taxes at the U.K. statutory tax rate (2018: 19%, 2017:19.25%, 2016: 20.0%) 5.8 3.8 4.9 Effect of: Non-deductible expenses 0.1 0.8 0.4 Movement in valuation allowances — (0.9 ) 0.7 Differences in income tax rates in countries where the Company operates (1) 0.3 2.2 (0.5 ) Effect of U.S. tax reform — (4.0 ) — Effect of changes in tax rates (excluding U.S. tax reform) (2) 0.2 1.1 — Movement in uncertain tax positions 0.1 0.9 0.9 Other (1.0 ) (0.6 ) 0.4 Total provision for income taxes $ 5.5 $ 3.3 $ 6.8 (1) Refers mainly to the effects of the differences between the statutory income tax rate in the U.K. against the applicable income tax rates of each country where the Company operates. (2) The U.K. corporation tax rate decreased from 21% to 20% with effect from April 1, 2015, and from 20% to 19% with effect from April 1, 2017. A further reduction in the U.K. corporation tax rate is expected to 17% from April 1, 2020. 11. Income Taxes (continued) The US tax reform included complex tax provisions, and it is understood that the Department of Treasury and IRS may offer additional guidance about their application and effect. The Company does not expect to have to book any further related adjustments, however we will review any updates in interpretations and information as they become available. The Company is below the size thresholds for application of the base erosion and anti-avoidance tax (BEAT). The Company does not have material global intangible low-taxed income (GILTI) or foreign derived intangible income (FDII), and is not currently subject to any material restriction under the net interest expense limitation. Reconciliations of the beginning and ending gross unrecognized tax benefits were as follows: Years ended December 31, In millions 2018 2017 2016 Beginning balance $ 2.8 $ 1.9 $ 1.0 Gross increases based on tax positions related to the current year 1.4 1.0 0.9 Reductions due to expiry of statute of limitations (1.0 ) (0.1 ) — Ending balance $ 3.2 $ 2.8 $ 1.9 Non-current $ 3.2 $ 2.8 $ 1.9 The Company's unrecognized tax benefits relate to the pricing of its various inter-company transactions. Because the transfer pricing calculation is often multifaceted, taking into account economics, finance, industry practice, and functional analysis, a company's transfer pricing position often sits at a particular point along a wide continuum of possible pricing outcomes. The inherent subjectivity in pricing inter-company balances gives rise to measurement uncertainty. Management has considered the valuation uncertainty in determining the measurement of the uncertain tax position. There are no current tax audit examinations. Management estimates that it is reasonably possible that approximately $0.9 million of our gross unrecognized tax benefits ( $0.1 million of our net unrecognized tax benefits) may be recognized by the end of 2019 as a result of a lapse of the statute of limitations. At December 31, 2018 , 2017 and 2016 , there were $0.7 million , $0.6 million , and $0.4 million of unrecognized tax benefits respectively, that if recognized would affect the annual effective tax rate. The Company recognizes interest accrued and penalties relating to unrecognized tax benefits in the income tax line. During the years ended December 31, 2018 , 2017 and 2016 , the Company recognized approximately $ nil , $0.1 million and $nil respectively, in interest and penalties. The following is a summary of the tax years open by major tax jurisdiction: Jurisdiction Years open U.K. 2017 - 2018 U.S. Federal 2016 - 2018 U.S. State and local 2015 - 2018 France 2016 - 2018 Czech Republic 2015 - 2018 Germany 2015 - 2018 China 2016 - 2018 Canada 2015 - 2018 11. Income Taxes (continued) Taxes have not been provided on undistributed earnings of subsidiaries where it is our intention to reinvest these earnings permanently or to repatriate the earnings only when it is tax efficient to do so. The amount of unremitted earnings at December 31, 2018 , was approximately $62.4 million (at December 31, 2017 : $59.0 million , at December 31, 2016 : $69.9 million ). If these earnings were remitted, it is estimated that the additional income tax arising would be approximately $0.6 million (at December 31, 2017 : $0.3 million , at December 31, 2016 : $0.2 million ). Deferred taxes were recorded in the Consolidated Balance Sheets as follows: December 31, In millions 2018 2017 Other non-current assets $ 18.6 $ 20.8 Other non-current liabilities (3.5 ) (4.2 ) Net deferred tax assets $ 15.1 $ 16.6 The tax effects of the major items recorded in deferred tax assets and liabilities were as follows: December 31, In millions 2018 2017 Deferred tax assets Pension benefits $ 7.7 $ 10.9 Tax loss and credit carry forwards 20.7 24.8 Other 5.2 1.6 Total deferred tax assets 33.6 37.3 Valuation allowances (15.0 ) (15.0 ) Deferred tax assets, net of valuation allowances $ 18.6 $ 22.3 Deferred tax liabilities Property, plant and equipment $ 3.5 $ 5.7 Total deferred tax liabilities $ 3.5 $ 5.7 Net deferred tax assets $ 15.1 $ 16.6 Deferred tax liabilities and assets represent the tax effect of temporary differences between the value of assets and liabilities for financial statement purposes and such values as measured by the relevant jurisdiction's tax laws and regulations. Deferred tax assets and liabilities from the same tax jurisdiction have been netted, resulting in assets and liabilities being recorded under the deferred taxation captions on the consolidated balance sheet. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences and carryforwards become deductible or creditable. Management considers the scheduled reversal of existing taxable temporary differences, projected future taxable income, and tax-planning strategies in making this assessment. 11. Income Taxes (continued) At December 31, 2018 , the Company had carried forward tax losses and tax credits of $81.0 million (U.K.: $38.8 million , non-U.K.: $42.2 million ). Carried forward tax losses and tax credits for 2017 were $92.7 million (U.K.: $43.4 million , non-U.K.: $49.3 million ) and for 2016 were $82.4 million (U.K.: $35.3 million , non-U.K.: $47.1 million ). To the extent that these losses are not already recognized as deferred income taxes assets, and are available to offset against future taxable profits, it is expected that the future effective tax rate would be below the standard rate in the country where the profits are offset. A valuation allowance of $15.0 million ( 2017 : $15.0 million , 2016 : $15.9 million ) exists for deferred tax benefits related to the tax loss and tax credit carry forwards and other benefits that may not be realized. The apportionment of the valuation allowance between the U.K. and non-U.K. jurisdictions is U.K.: $4.1 million , non-U.K.: $10.9 million ( 2017 : U.K.: $4.6 million , non-U.K.: $10.4 million ; 2016 : U.K.: $4.1 million , non-U.K.: $11.8 million ). The non-U.K. valuation allowances relate predominantly to tax losses in Canada and Germany. Of the carried forward tax losses and tax credits as at December 31, 2018 , $23.8 million expire between 2023 and 2034 and $57.2 million are available for indefinite carry-forward. |
Pension Plans
Pension Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Pension Plans | Pension Plans The Company has defined benefit pension plans in the U.K., the U.S. and France. The levels of funding are determined by periodic actuarial valuations. The assets of the plans are generally held in separate trustee-administered funds. The Company also operates defined contribution plans in the U.K., the U.S., Australia and Canada. The "10% corridor" method for recognizing gains and losses has been adopted. This methodology means that cumulative gains and losses up to an amount equal to 10% of the higher of the liabilities and the assets (the corridor) have no impact on the pension cost. Cumulative gains or losses greater than this corridor are amortized over the average future lifetime of the members in the Plans. The principal defined benefit pension plans in the Company is the U.K. Luxfer Group Pension Plan ("the Plan"), which closed to new members in 1998, new employees then being eligible for a defined contribution plan. In April 2016, the Plan was closed to further benefit accrual with members being offered contributions to a defined contribution plan. The Company's other arrangements are less significant than the Plan, the largest being the BA Holdings, Inc. Pension Plan in the U.S. In December 2005, this plan was closed to further benefit accrual with members being offered contributions to that company's 401(k) plan. At January 1, 2016, the U.S. pension plans (BA Holdings, Inc. Pension Plan and Luxfer Hourly Pension Plan) merged into one plan. The following tables present reconciliations of plan benefit obligations, fair value of plan assets and the funded status of pension plans as of and for the years ended December 31, 2018 and 2017 : 2018 2018 2018 2017 2017 2017 In millions U.K. U.S./ other Total U.K. U.S./ other Total Change in benefit obligations Benefit obligation at January 1 $ 369.7 $ 53.1 $ 422.8 $ 334.8 $ 48.6 $ 383.4 Service cost — 0.1 0.1 — 0.1 0.1 Interest cost 8.6 1.8 10.4 8.9 1.9 10.8 Actuarial (gain) / loss (27.7 ) (5.9 ) (33.6 ) 10.1 4.3 14.4 Exchange difference (19.7 ) (0.1 ) (19.8 ) 32.0 0.3 32.3 Benefits paid (17.9 ) (2.2 ) (20.1 ) (16.1 ) (2.1 ) (18.2 ) Prior service cost 2.2 — 2.2 — — — Benefit obligation at December 31 $ 315.2 $ 46.8 $ 362.0 $ 369.7 $ 53.1 $ 422.8 Change in plan assets Fair value of plan assets at January 1 $ 326.3 $ 41.2 $ 367.5 $ 280.3 $ 36.6 $ 316.9 Actual return on assets (13.0 ) (2.5 ) (15.5 ) 27.7 4.8 32.5 Exchange difference (17.8 ) — (17.8 ) 27.4 — 27.4 Contributions from employer 5.8 2.1 7.9 7.0 1.9 8.9 Benefits paid (17.9 ) (2.2 ) (20.1 ) (16.1 ) (2.1 ) (18.2 ) Fair value of plan assets at December 31 $ 283.4 $ 38.6 $ 322.0 $ 326.3 $ 41.2 $ 367.5 Funded status Benefit obligations in excess of the fair value of plan assets $ (31.8 ) $ (8.2 ) $ (40.0 ) $ (43.4 ) $ (11.9 ) $ (55.3 ) The net benefit obligations of $40.0 million and $55.3 million at December 31, 2018 , and December 31, 2017 , respectively, are recorded in non-current liabilities in the consolidated balance sheets. 12. Pension Plans (continued) The amounts recognized in the consolidated statements of income in respect of the pension plans were as follows: 2018 2018 2018 2017 2017 2017 2016 2016 2016 In millions U.K. U.S. / other Total U.K. U.S. / other Total U.K. U.S. / other Total In respect of defined benefit plans: Current service cost $ — $ 0.1 $ 0.1 $ — $ 0.1 $ 0.1 $ 0.3 $ 0.1 $ 0.4 Interest cost 8.6 1.8 10.4 8.9 1.9 10.8 10.9 2.5 13.4 Expected return on assets (14.5 ) (2.2 ) (16.7 ) (14.8 ) (1.8 ) (16.6 ) (14.1 ) (2.3 ) (16.4 ) Settlement loss — — — — — — — 4.3 4.3 Amortization of net actuarial loss 2.3 0.4 2.7 2.5 0.3 2.8 1.9 0.4 2.3 Amortization of prior service credit (0.5 ) — (0.5 ) (0.5 ) — (0.5 ) (0.5 ) — (0.5 ) Total (credit) / charge for defined benefit plans $ (4.1 ) $ 0.1 $ (4.0 ) $ (3.9 ) $ 0.5 $ (3.4 ) $ (1.5 ) $ 5.0 $ 3.5 In respect of defined contribution plans: Total charge for defined contribution plans $ 2.1 $ 2.3 $ 4.4 $ 1.9 $ 2.1 $ 4.0 $ 1.6 $ 2.1 $ 3.7 Total (credit) / charge for pension plans $ (2.0 ) $ 2.4 $ 0.4 $ (2.0 ) $ 2.6 $ 0.6 $ 0.1 $ 7.1 $ 7.2 In accordance with ASC 715, defined benefit pension charge / (credit) is split in the income statement, with $0.7 million (2017: $0.8 million ; 2016: $0.7 million ) of expenses recognized within sales, general and administrative expenses and a credit of $4.7 million (2017: $4.2 million credit; 2016: $2.8 million charge) recognized below operating income in the income statement. The following table shows other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) ("AOCI") during the years ended December 31: In millions 2018 2017 Net actuarial gain $ 1.4 $ 1.6 Amortization of net gain 2.7 2.8 Prior service cost (2.2 ) — Amortization of prior service credit (0.5 ) (0.5 ) Total recognized in other comprehensive income 1.4 3.9 Total credit recognized in net periodic benefit cost and other comprehensive income $ 5.4 $ 7.3 The estimated net loss for defined benefit plans included in AOCI that will be recognized in net periodic benefit cost during 2019 is $2.3 million , consisting of amortization of net actuarial loss of $2.7 million , partially offset by amortization of prior service credit of $0.4 million . The following table shows the amounts included in AOCI that have not yet been recognized as components of net periodic benefit cost for the years ended December 31: In millions 2018 2017 Net actuarial loss $ (136.4 ) $ (140.5 ) Net prior service credit 12.7 15.5 Total included in AOCI not yet recognized in the statement of income $ (123.7 ) $ (125.0 ) 12. Pension Plans (continued) The financial assumptions used in the calculations were: Projected Unit Credit Valuation U.K. U.S. 2018 2017 2016 2018 2017 2016 % % % % % % Discount rate 2.90 2.40 2.60 4.20 3.60 4.20 Expected return on assets 4.90 4.80 5.20 6.20 6.00 6.30 Retail price inflation 3.30 3.10 3.20 n/a n/a n/a Inflation related assumptions: Salary inflation n/a n/a n/a n/a n/a n/a Consumer price inflation 2.20 2.10 2.20 n/a n/a n/a Pension increases—pre April 6, 1997 2.00 1.90 2.00 n/a n/a n/a —1997 - 2005 2.20 2.10 2.20 n/a n/a n/a —post April 5, 2005 1.80 1.70 1.80 n/a n/a n/a The discount rate used represents the annualized yield based on a cash-flow matched methodology with reference to an AA corporate bond spot curve and having regard to the duration of the Plan’s liabilities. The inflation rate is derived using a similar cash flow matched methodology as used for the discount rate but having regard to the difference between yields on fixed-interest and index-linked United Kingdom government gilts. The expected return on assets assumption is set having regard to the asset allocation and expected return on each asset class as at the balance sheet date. 2018 2017 Other principal actuarial assumptions: Years Years Life expectancy of male / female in the U.K. aged 65 at accounting date 21.4 / 24.1 21.6 / 24.6 Life expectancy of male / female in the U.K. aged 65 at 20 years after accounting date 22.8 / 25.7 23.3 / 26.5 Investment strategies For the principal defined benefit plan in the Company and the U.K., the Luxfer Group Pension Plan, the assets are invested in a diversified range of asset classes and include matching assets (comprising fixed-interest and index-linked bonds and swaps) and growth assets (comprising all other assets). The Trustees of the Plan have formulated a de-risking strategy to help control the short-term risk of volatility associated with holding growth assets. The Trustees also monitor the cost of a buy-in to secure pensioner liabilities with an insurance company to ensure they and the Company are able to act if such an opportunity arises. Other options to progressively reduce the scale of the liabilities are discussed between the Trustees and the Company. Risk exposures The Company is at risk of adverse experience relating to the defined benefit plans. The plans hold a high proportion of assets in equity and other growth investments, with the intention of growing the value of assets relative to liabilities. The Company is at risk if the value of liabilities grows at a faster rate than the plans assets, or if there is a significant fall in the value of these assets not matched by a fall in the value of liabilities. If these events occurred, this would be expected to lead to an increase in the Company's future cash contributions. 12. Pension Plans (continued) Special events In October 2018, following a High Court ruling in the U.K., a $2.2 million allowance in relation to the expected future costs of equalizing Guaranteed Minimum Pensions (GMPs) in the U.K. Plan has been included in the obligations on the balance sheet at December 31, 2018. This allowance will be amortized in the income statement over the future lifetime of the Plan members. In 2016 annuities were purchased settling $10.0 million of liabilities of the U.S. Plan with an associated settlement charge of $0.1 million . Lump sum settlements were also paid of $4.2 million with an associated settlement credit of $0.7 million . The gross amounts settled were $14.8 million and $14.2 million during this exercise. In 2015, following a consultation with the Trustees and members, it was agreed that the Luxfer Group Pension Plan in the U.K. would close to future accrual of benefits effective from April 5, 2016, and for the purpose of increasing pensions in payment, to use Consumer Price Index as the reference index in place of Retail Price Index where applicable. As a result, in 2015 the Company recognized a curtailment credit of $3.3 million in respect of the closure of the Plan to future accrual and a past service credit of $14.9 million in respect of the change in expected future pension increases in payment. The fair value of plan assets were: 2018 2018 2018 2017 2017 2017 In millions U.K. U.S./ other Total U.K. U.S./ other Total Assets in active markets: Equities and growth funds $ 173.1 $ 20.6 $ 193.7 $ 203.4 $ 22.9 $ 226.3 Government bonds 46.7 — 46.7 49.9 — 49.9 Corporate bonds 63.6 18.0 81.6 72.7 18.3 91.0 Cash — — — 0.3 — 0.3 Total fair value of plan assets $ 283.4 $ 38.6 $ 322.0 $ 326.3 $ 41.2 $ 367.5 All investments were classified as Level 2 in the fair value hierarchy as of December 31, 2018 and December 31, 2017 . The following benefit payments are expected to be paid by the plans for the years ended December 31 as follows: In millions U.K. pension plans U.S./ other pension plans 2019 $ 17.6 $ 2.3 2020 17.9 2.3 2021 18.3 2.3 2022 18.7 2.3 2023 19.1 2.3 Thereafter 102.2 11.7 The estimated amount of employer contributions expected to be paid to the defined benefit pension plans for the year ending December 31, 2019, is $7.5 million (2018: $7.9 million actual employer contributions). |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders' Equity (a) Ordinary share capital December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 No. No. Millions Millions Authorized: Ordinary shares of £0.50 each 40,000,000 40,000,000 $ 35.7 (1) $ 35.7 (1) Deferred ordinary shares of £0.0001 each 761,845,318,444 769,423,688,000 149.9 (1) 150.9 (1) 761,885,318,444 769,463,688,000 $ 185.6 (1) $ 186.6 (1) Allotted, called up and fully paid: Ordinary shares of £0.50 each 29,000,000 27,136,799 $ 26.6 (1) $ 25.3 (1) Deferred ordinary shares of £0.0001 each 761,835,338,444 769,413,708,000 149.9 (1) 150.9 (1) 761,864,338,444 769,440,844,799 $ 176.5 (1) $ 176.2 (1) (1) The Company's ordinary and deferred share capital are shown in U.S. dollars at the exchange rate prevailing at the month-end spot rate at the time of the share capital being issued. This rate at the end of February 2007 was $1.9613 :£1 when the first 20,000,000 shares were issued; the rate at the end of October 2012 was $1.6129 :£1 when 7,000,000 shares were issued; the rate at the end of March 2013 was $1.5173 :£1 when 1,924 shares were issued; the rate at the end of January 2014 was $1.6487 :£1 when 12,076 shares were issued; the rate at the end of May 2014 was $1.6760 :£1 when 24,292 shares were issued; the rate at the end of August 2014 was $1.6580 :£1 when 58,399 shares were issued; the rate at the end of February 2015 was $1.5436 :£1 when 8,563 shares were issued; the rate at the end of March 2015 was $1.4847 :£1 when 3,866 shares were issued; the rate at the end of June 2015 was $1.5715 :£1 when 27,679 shares were issued; and the rate at the end of August 2018 when was $1.2843 :£1 when 1,863,201 shares were issued. The rights of the shares are as follows: Ordinary shares of £0.50 each The ordinary shares carry no entitlement to an automatic dividend but rank pari passu in respect of any dividend declared and paid. The ordinary shares were allotted and issued to satisfy share awards which vested under the Company's share award and share incentive plans. At December 31, 2018 , there were 28,376,729 (2017: 25,929,312 ) ordinary shares of Luxfer Holdings PLC listed on the New York Stock Exchange (NYSE). Deferred ordinary shares of £0.0001 each The deferred shares have no entitlement to dividends or to vote. On a liquidation, (but not otherwise) the holders of the deferred shares shall be entitled to the repayment of the paid up nominal amount of the deferred shares, but only after any payment to the holders of ordinary shares of an amount equal to 100 times the amount paid up on such ordinary shares. 13. Shareholders' Equity (continued) (b) Treasury Shares In millions At January 1, 2017 $ (7.1 ) Transfer of treasury shares into ESOP 0.8 Utilization of treasury shares 0.5 At December 31, 2017 (5.8 ) Transfer of treasury shares into ESOP 1.4 Utilization of treasury shares 0.1 At December 31, 2018 $ (4.3 ) In June 2015, the Board announced a share buy-back program of up to $10 million to cover the needs of employee share plans. Shareholder approval for this program was granted at the 2014 Annual General Meeting (for repurchases up to an aggregate amount of 2,700,000 ordinary shares or ADSs). During 2017 and 2018, no ordinary shares were repurchased under the share buy-back program. At December 31, 2018, there were 378,201 (2017: 527,616 ) treasury shares held at a cost of $4.3 million (2017: $5.8 million ). (c) Own shares held by ESOP In millions At January 1, 2017 $ (0.5 ) Transfer of treasury shares into ESOP (0.8 ) Utilization of ESOP shares 0.3 At December 31, 2017 (1.0 ) Issue of new shares (1.3 ) Shares sold from ESOP 0.4 Transfer of treasury shares into ESOP (1.4 ) Utilization of ESOP shares 1.1 At December 31, 2018 $ (2.2 ) At December 31, 2018 , there were 1,621,301 ordinary shares of £0.50 each ( 2017 : 104,709 ordinary shares of £0.50 each) held by The Luxfer Group Employee Share Ownership Plan (the "ESOP"). 13. Shareholders' Equity (continued) (d) Dividends paid and proposed In millions 2018 2017 2016 Dividends declared and paid during the year: Interim dividend paid February 3, 2016 ($0.125 per ordinary share) $ — $ — $ 3.4 Interim dividend paid May 4, 2016 ($0.125 per ordinary share) — — 3.3 Interim dividend paid August 3, 2016 ($0.125 per ordinary share) — — 3.3 Interim dividend paid November 2, 2016 ($0.125 per ordinary share) — — 3.3 Interim dividend paid February 1, 2017 ($0.125 per ordinary share) — 3.3 — Interim dividend paid May 3, 2017 ($0.125 per ordinary share) — 3.3 — Interim dividend paid August 2, 2017 ($0.125 per ordinary share) — 3.3 — Interim dividend paid November 1, 2017 ($0.125 per ordinary share) — 3.4 — Interim dividend paid February 7, 2018 ($0.125 per ordinary share) 3.4 — — Interim dividend paid May 2, 2018 ($0.125 per ordinary share) 3.3 — — Interim dividend paid August 1, 2018 ($0.125 per ordinary share) 3.3 — — Interim dividend paid November 7, 2018 ($0.125 per ordinary share) 3.4 — — $ 13.4 $ 13.3 $ 13.3 In millions 2018 2017 2016 Dividends declared and paid after December 31 (not recognized as a liability at December 31): Interim dividend paid February 1, 2017: ($0.125 per ordinary share) $ — $ — $ 3.3 Interim dividend paid February 7, 2018: ($0.125 per ordinary share) — 3.4 — Interim dividend paid February 6, 2019: ($0.125 per ordinary share) 3.4 — — $ 3.4 $ 3.4 $ 3.3 |
Share Plans
Share Plans | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [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. The current plan The current share option plan, implemented by the Company in February 2007 is The Luxfer Holdings Executive Share Option Plan ("the Plan"), which consists of two parts. Part A of the Plan is approved by HM Revenue & Customs and Part B is unapproved. Options can be exercised at any time up to the ten th anniversary of their grant subject to the rules of the relevant part of the Plan. As a result of the Company's initial public offering of ordinary shares in 2012, all leaver restrictions over the shares were released. There are no other performance criteria attached to the options. 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 £0.0001 deferred shares £0.50 ordinary shares At January 1, 2018 15,977,968,688 104,709 New shares issued — 1,863,201 Shares utilized during the year — (149,609 ) Shares transferred into ESOP during the year — 120,000 Shares sold from the ESOP during the year — (317,000 ) At December 31, 2018 15,977,968,688 1,621,301 At December 31, 2018 , the loan outstanding from the ESOP was $2.0 million ( 2017 : $2.6 million ). The market value of each £0.50 ordinary share held by the ESOP at December 31, 2018 , was $17.63 ( 2017 : $15.80 ). (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. 14. Share Plans (continued) (b) Share-based compensation (continued) 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-third each year over a three -year period, subject to continuous employment and certain other conditions, with the exercise period expiring five 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. Share option and restricted stock awards As a tool to retain key people and align their interests with those of shareholders, a one-off award of market-value options was made to a small number of executives and the non-executive directors immediately prior to the Company's initial public offering in 2012. Of this award 40% of the options granted vested immediately and 20% of the options vested upon each of the first, second and third anniversaries of the I.P.O. All awards have therefore fully vested, with 126,000 remaining to be exercised before October 2019. In March 2018, a combined 432,600 of Restricted Stock Units and Options over ordinary shares were granted under the LTIP, which were all time-based awards vesting over three years and expiring two years later. In April 2018, a combined 11,936 of Restricted Stock Units and Options over ordinary shares were granted under the Director EIP, of which 2,000 would vest over three years and 9,936 would fully vest one year later. The Director EIP are all time-based awards. In January 2018, Heather Harding was granted share options in respect of her appointment to the role of Chief Financial Officer. These time, and performance-based options were outside the terms of reference of the LTIP but granted in accordance with the provisions of the Remuneration Policy. The details of the awards are as follows: The Remuneration Committee determined that the new Chief Financial Officer should acquire 21,000 nominal cost RSUs to vest over three years . Performance-based awards amounting to 30,000 shares should be made to the new Chief Financial Officer which would vest upon achievement of attaining a specified adjusted diluted EPS target at each annual measurement date. Three levels of target have been set: • The lower target must be achieved by the measurement date at the end of 2020 and will result in the vesting of 5,000 shares. • The mid-point target must be achieved by the measurement date at the end of 2022 and will result in the vesting of a further 10,000 shares. • The top target must be achieved by the measurement date at the end of 2024 and will result in the vesting of a further 15,000 shares. In March 2017, a combined 139,800 of Restricted Stock Units and Options over ordinary shares were granted under the LTIP, which were all time-based awards vesting over three years and expiring two years later. Following the Annual General Meeting on May 23, 2017, a combined 21,814 of Restricted Stock Units and Options over ordinary shares were granted under the Director EIP, which were all time-based awards which will be fully vested and settled one year later in May 2018. In March 2016, 95,140 Restricted Stock Units and Options over ordinary shares were granted under the LTIP, which were all time-based awards vesting over three years and expiring two years later. Following the Annual General Meeting on May 24, 2016, 12,520 Restricted Stock Units and Options over ordinary shares were granted under the Director EIP, which were all time-based awards. All EIP awards have fully vested and been exercised. 14. Share Plans (continued) (b) Share-based compensation (continued) In May 2017 Alok Maskara was granted share options in respect of his appointment to the role of Chief Executive Officer. These time, and performance-based options were outside the terms of reference of the LTIP but granted in accordance with the provisions of the Remuneration Policy. The details of the awards are as follows: (i) The Remuneration Committee determined that the new Chief Executive Officer should acquire a minimum quantity of 22,500 shares within twelve months of appointment. Upon the Chief Executive Officer acquiring the shares, the Company matched the purchase by granting an award over 45,000 nominal cost RSUs, to vest over three years. (ii) A one-off share award to the new CEO, outside the terms of the LTIP, over 60,000 time-based nominal cost RSUs, to vest over four years. (iii) Performance-based Awards made to the new Chief Executive Officer vest upon achievement of attaining a specified adjusted diluted EPS target at each annual measurement date. Three levels of targets have been set: • The lower target must be achieved by the measurement date at the end of 2020 and will result in the vesting of 30,000 shares. • The mid-point target must be achieved by the measurement date at the end of 2022 and will result in the vesting of a further 40,000 shares. • The top target must be achieved by the measurement date at the end of 2024 and will result in the vesting of a further 50,000 shares. Total share-based compensation expense for 2018 , 2017 and 2016 was as follows: Years ended December 31, In millions 2018 2017 2016 Other share-based compensation charges $ 4.8 $ 2.2 $ 1.4 Restructuring share-based compensation charges — 0.9 — Total share-based compensation charges $ 4.8 $ 3.1 $ 1.4 There were no cancellations or modifications to the awards in 2018 , 2017 or 2016 . Cash received from option exercises for the years ended December 31, 2018 , 2017 and 2016 was $0.5 million , $0.9 million and $0.1 million , respectively. The actual tax benefit realized for the tax deductions from option exercises totaled $0.2 million , $0.3 million and $0.3 million in 2018 , 2017 and 2016 , respectively. The following tables illustrates the number of, and movements in, share options during the year, with each option relating to 1 ordinary share: Number of shares Weighted- average exercise price Weighted- average remaining contractual life (years) Aggregate intrinsic value ($M) At January 1, 2018 1,182,315 $ 6.42 2.4 $ 11.1 Granted during the year 510,536 $ 0.67 Exercised during the year (833,360 ) $ 7.43 Accrued dividend awards 18,776 $ 0.66 Lapsed during the year (29,205 ) $ 0.67 At December 31, 2018 849,062 $ 2.10 1.9 $ 13.3 Options exercisable at December 31, 2018 320,882 $ 4.31 2.4 $ 4.3 Options expected to vest as of December 31, 2018 528,180 $ 0.64 1.5 $ 9.0 14. Share Plans (continued) (b) Share-based compensation (continued) The weighted average fair value of options granted in 2018 , 2017 and 2016 was estimated to be $11.02 , $9.82 and $9.39 per share, respectively. The total intrinsic value of options that were exercised during 2018 , 2017 and 2016 was $9.3 million , $1.4 million and $1.4 million , respectively. At December 31, 2018 , the total unrecognized compensation cost related to share options was $3.8 million (2017: $3.4 million ). This cost is expected to be recognized over a weighted average period of 1.8 years . The following table illustrates the assumptions used in deriving the fair value of share options during the year: 2018 2017 Dividend yield (%) 4.00 4.00 Expected volatility range (%) 22.65 - 35.77 26.81 - 35.81 Risk-free interest rate (%) 0.12 - 2.57 1.00 - 2.01 Expected life of share options range (years) 0.50 - 6.00 0.50 - 7.36 Weighted average exercise price ($) $0.65 $0.65 Model used Black-Scholes & Monte-Carlo Black-Scholes 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. |
Segmental Information
Segmental Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segmental Information | Segmental Information We classify our operations into two core business segments, Gas Cylinders and the 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 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-containd 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 (1) and adjusted EBITDA, which is defined as segment income and is based on operating income adjusted for share based compensation expense; qualifying restructuring charges; impairment charges; legal expenses incurred from patent litigation with a competitor; profit on sale of redundant site; direct listing costs; acquisition-related charges / credits; loss on disposal of property, plant and equipment; depreciation and amortization; and unwind of discount on deferred consideration. Unallocated assets and liabilities include those which are held on behalf of the Group 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 2018 2017 2016 2018 2017 2016 Gas Cylinders segment $ 238.1 $ 220.2 $ 225.8 $ 23.4 $ 17.0 $ 18.3 Elektron segment 249.8 221.1 189.0 56.2 42.3 33.0 Consolidated $ 487.9 $ 441.3 $ 414.8 $ 79.6 $ 59.3 $ 51.3 Depreciation and amortization Restructuring Charges In millions 2018 2017 2016 2018 2017 2016 Gas Cylinders segment $ 7.3 $ 7.2 $ 7.4 $ 10.0 $ 2.9 $ — Elektron segment 11.7 11.1 10.6 3.4 5.5 0.4 Consolidated $ 19.0 $ 18.3 $ 18.0 $ 13.4 $ 8.4 $ 0.4 (1) Adjusted EBITA is adjusted EBITDA less depreciation and loss on disposal of property, plant and equipment. 15. Segmental Information (continued) Total assets Capital expenditure In millions 2018 2017 2016 2018 2017 2016 Gas Cylinders segment $ 145.6 $ 156.9 $ 151.9 $ 2.8 $ 3.5 $ 7.2 Elektron segment 210.5 210.4 190.9 10.5 5.8 10.1 Other 34.3 48.5 57.0 0.3 0.7 — $ 390.4 $ 415.8 $ 399.8 $ 13.6 $ 10.0 $ 17.3 The following table presents a reconciliation of Adjusted EBITDA to net income: In millions 2018 2017 2016 Adjusted EBITDA $ 79.6 $ 59.3 $ 51.3 Other share based compensation charges (4.8 ) (2.2 ) (1.4 ) Loss on disposal of property, plant and equipment (0.3 ) — (0.2 ) Depreciation and amortization (19.0 ) (18.3 ) (18.0 ) Unwind discount on deferred consideration (0.2 ) (0.2 ) (0.4 ) Restructuring charges (13.4 ) (8.4 ) (0.4 ) Impairment charge (7.2 ) (3.7 ) — Acquisition (costs) / credit (4.3 ) 1.3 — Other charges (1) — (5.8 ) — Other general income — — 2.5 Defined benefits pension mark-to-market gain / (loss) 4.7 4.2 (2.8 ) Interest expense, net (4.6 ) (6.3 ) (6.0 ) Provision for taxes (5.5 ) (3.3 ) (6.8 ) Net income $ 25.0 $ 16.6 $ 17.8 (1) Other charges 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. Predominantly all equity income / loss of unconsolidated affiliates for 2018 , 2017 and 2016 relates to the Gas Cylinders Segment. 15. Segmental Information (continued) The following tables present certain geographic information by geographic region for the years ended December 31,: Net Sales 2018 2017 2016 $M Percent $M Percent $M Percent United States $ 249.2 51.1 % $ 224.1 50.8 % $ 211.3 50.9 % U.K. 47.6 9.8 % 40.4 9.2 % 36.5 8.8 % Germany 42.0 8.6 % 36.8 8.3 % 32.2 7.8 % Italy 23.3 4.8 % 19.0 4.3 % 19.6 4.7 % France 17.0 3.4 % 16.0 3.6 % 15.0 3.6 % Top five countries $ 379.1 77.7 % $ 336.3 76.2 % $ 314.6 75.8 % Rest of Europe 33.2 6.8 % 31.1 7.0 % 27.4 6.6 % Asia Pacific 53.0 10.9 % 47.5 10.8 % 45.6 11.0 % Other (2) 22.6 4.6 % 26.4 6.0 % 27.2 6.6 % $ 487.9 $ 441.3 $ 414.8 Property, plant and equipment, net In millions 2018 2017 2016 United States $ 66.1 $ 75.4 $ 77.5 United Kingdom 36.0 36.6 34.3 Rest of Europe 1.1 13.1 12.8 Asia Pacific 0.3 0.2 0.2 Other (2) 3.4 3.8 3.8 $ 106.9 $ 129.1 $ 128.6 (1) Net sales are based on the geographic destination of sale. (2) Other includes Canada, South America, Latin America and Africa. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating lease commitments Rental expense under operating leases was as follows: In millions December 31, 2018 December 31, 2017 December 31, 2016 Minimum lease payments under operating leases recognized in the consolidated income statement $ 4.8 $ 5.1 $ 4.8 At December 31, 2018 , the Company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, principally related to buildings, items of machinery and equipment and motor vehicles, falling due as follows: In millions 2019 2020 2021 2022 Thereafter Total Minimum lease payments $ 4.2 $ 4.1 $ 3.3 $ 2.7 $ 13.1 $ 27.4 Capital commitments At December 31, 2018 , the Company had capital expenditure commitments of $2.5 million ( 2017 : $0.6 million and 2016 : $3.6 million ) for the acquisition of new plant and equipment. Committed banking facilities At December 31, 2018 and 2017 the Company had committed banking facilities of $150.0 million . The facilities were for providing loans and overdrafts, with a separate facility for letters of credit which at December 31, 2018 , was £7.0 million ( $8.9 million ), 2017 was £7.0 million ( $9.5 million ). Of the committed facilities, $3.5 million was drawn for overdrafts, no loans were drawn and no letters of credit were utilized at December 31, 2018, $4.2 million , $1.3 million and nil for 2017. The Company also has a separate bonding facility for bank guarantees denominated in GBP sterling of £3.0 million (2018: $3.8 million , 2017: $4.1 million ), of which £1.5 million ( $1.9 million ) (2017: £1.0 million / $1.4 million ) was utilized at December 31, 2018 . Aborted Acquisition of Neo Performance Materials Inc. On March 10, 2019 we executed a termination agreement in respect of the proposed acquisition of Neo Performance Materials Inc., announced in December 2018. Under the terms of the agreement we are committed to make a payment of up to $3.5 million to cover Neo's costs. 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 minor 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 and a prosecutor has been appointed. We have reviewed our quality control checks from around the time which 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. As a result 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. |
Selected Quarterly Data (unaudi
Selected Quarterly Data (unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Data (unaudited) | Selected Quarterly Data (unaudited) The following tables present 2018 and 2017 quarterly financial information: 2018 In millions, except per-share data First Quarter Second Quarter Third Quarter Fourth Quarter Full Year Net sales $ 119.7 $ 128.2 $ 129.1 $ 110.9 $ 487.9 Gross profit 30.3 33.6 34.0 24.2 122.1 Operating income / (loss) 12.8 14.6 15.7 (13.1 ) 30.0 Net income / (loss) 9.9 11.4 12.2 (8.5 ) 25.0 Earnings / (loss) per ordinary share (1) Basic earnings / (loss) per ordinary share $ 0.37 $ 0.43 $ 0.46 $ (0.31 ) $ 0.94 Diluted earnings / (loss) per ordinary share 0.36 0.42 0.44 (0.31 ) 0.90 2017 In millions, except per-share data First Quarter Second Quarter Third Quarter Fourth Quarter Full Year Net sales $ 103.4 $ 106.6 $ 115.2 $ 116.1 $ 441.3 Gross profit 25.7 26.3 29.5 27.1 $ 108.6 Operating income / (loss) 10.2 6.3 8.5 (3.1 ) $ 21.9 Net income / (loss) 7.9 3.9 5.8 (1.0 ) $ 16.6 Earnings / (loss) per ordinary share (1) Basic earnings / (loss) per ordinary share $ 0.30 $ 0.15 $ 0.22 $ (0.04 ) $ 0.63 Diluted earnings / (loss) per ordinary share 0.30 0.15 0.22 (0.04 ) 0.62 (1) Amounts may not total to annual earnings because each quarter and year are calculated separately based on basic and diluted weighted-average ordinary shares outstanding during the period. Fourth quarter 2018 included decreases in operating income due to restructuring charges of $11.3 million , impairment charges of $7.2 million and acquisition related costs of $4.3 million . |
Related-Party Transactions
Related-Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related-Party Transactions | Related-Party Transactions Joint venture in which the Company is a venturer During 2018 , the Company maintained its 51% investment in the equity of the joint venture, Luxfer Uttam India Private Limited. During 2018 , the Gas Cylinders segment made $1.7 million ( 2017 : $1.9 million ) of sales to the joint venture. At December 31, 2018 , the gross amounts receivable from the joint venture amounted to $1.1 million ( 2017 : $2.3 million ) and the net amounts receivable amounted to $0.9 million ( 2017 : $0.9 million ). In addition, in 2018 we have transferred goods to Luxfer Uttam on extended credit terms with a sales value of $1.6 million (2017: $ nil ), where we do not deem it to be probable that we will collect substantially all of the consideration. In accordance with ASC 606, Revenue from Contracts with Customers , we have not recognized any revenue in relation to this transaction. During 2018 , the Company also maintained its 50% investment in the equity of the joint venture, Nikkei-MEL Company Limited. During 2018 , the Elektron segment made $0.9 million of sales to the joint venture ( 2017 : $1.2 million ). During 2018 , the Company provided $ nil in debt investment ( 2017 : $0.9 million ) to the joint venture Luxfer Holdings NA, LLC, of which it held 49% of the equity up to December 28, 2018, after which the company acquired the remaining 51% equity stake with the entity fully consolidated at December 31, 2018 (see note 2 Acquisitions and Disposals ). During 2018 , the Gas Cylinders segment made $0.6 million ( 2017 : $5.0 million ) of sales to the joint venture and received $0.4 million (2017: $0.3 million ) interest income. At December 31, 2018 , the amounts receivable from the joint venture amounted to $ nil ( 2017 : $0.9 million ) of trade debt and $ nil ( 2017 : $4.7 million ) of debt investment, reflecting the step acquisition after which the entity became a fully consolidated subsidiary. All sales to the joint venture are made on similar terms to arm's length transactions. 18. Related-Party Transactions (continued) Associates in which the Company holds an interest During 2018 the Company maintained its 26.4% equity of the associate, Sub161 Pty Limited. During 2018 , the Company made $ nil sales ( 2017 : $ nil ) to the associate. At December 31, 2018 , the amounts receivable from the associate denominated in Australian dollars was $ nil ( 2017 : $ nil ). Transactions with other related parties At December 31, 2018 , the directors and key management comprising the members of the Executive Leadership Team, owned 237,161 £0.50 ordinary shares ( 2017 : 170,297 £0.50 ordinary shares) and held awards over a further 600,528 £0.50 ordinary shares ( 2017 : 316,797 £0.50 ordinary shares). During the years ended December 31, 2018 and December 31, 2017, share options held by members of the Executive Leadership Team were exercised. Stone Canyon Industries LLC represents a related party due to its association with Adam Cohn as co-CEO of Stone Canyon, and holds nil ordinary shares in Luxfer Holdings PLC as at December 31, 2018 ( 2017 : 570,000 ). FTI consulting represents a related party due to its association with Brian Kushner as Senior Managing Director, Corporate Finance of FTI. During 2017, we engaged with FTI consulting for IT services for the value of $0.1 million . Cherokee Properties Inc. represents a related party due to its association with Chris Barnes, who is the president of one of our operating segments and is the president of Cherokee Properties Inc. During 2018 , we engaged with Cherokee Properties Inc. for rental and associated costs regarding our manufacturing site in Madison, IL, for the value of $1.0 million ( 2017 : $1.0 million ). Other than the transactions with the joint ventures and associates disclosed above and key management personnel disclosed above, no other related-party transactions have been identified. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events The Company entered into 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 is involved in magnesium recycling and based in the Czech Republic. An offer was received and subsequently accepted in February 2019 which has resulted in the business being classified as held-for-sale and written down to fair value, with an impairment charge of $3.4 million recognized in the 2018 statement of consolidated income. On December 18, 2018, Luxfer Holdings PLC announced the signing of an agreement under which Luxfer would acquire Neo Performance Materials ("Neo,"). We subsequently announced on March 10, 2019 that we had executed a termination agreement, under which we will make a payment to Neo of up to $3.5 million to cover their costs in respect of the aborted acquisition. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of consolidation | The consolidated financial statements comprise the financial statements of Luxfer Holdings PLC and its subsidiaries (collectively "we," "our," "Luxfer" ) that we control. Investments in unconsolidated affiliates, where we have the ability to exercise significant influence over the operating and financial policies, are accounted for using the equity method. All inter-company balances and transactions, including unrealized profits arising from intra-Company transactions, have been eliminated in full. The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and are presented in U.S. dollars ("USD"). The books of the Company's non-U.S. entities are converted to USD at each reporting period date in accordance with the accounting policy below. The functional currency of the holding company Luxfer Holdings PLC and its U.K. subsidiaries is pounds sterling (GBP), being the most appropriate currency for those particular operations. |
Fiscal year | Our fiscal year ends on December 31. Beginning in the first quarter of 2018, we began reporting our interim quarterly periods on a 13-week basis ending on a Sunday. Prior to the first quarter of 2018 we reported our interim quarterly periods on a calendar quarter basis. |
Use of estimates | The preparation of our consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes, disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. These estimates include our accounting for valuation of goodwill, estimated losses on accounts receivable, estimated realizable value on excess and obsolete inventory, cost-to-cost revenue recognition, assets acquired and liabilities assumed in acquisitions, estimated selling proceeds from assets held for sale, contingent liabilities, measurement of contingent consideration, income taxes and pension benefits. Actual results could differ from our estimates. |
Goodwill and other long-lived assets | Business combinations are accounted for using the purchase method. The cost of an acquisition is measured as the aggregate of the consideration transferred, measured at acquisition date fair value, and the amount of any non-controlling interest in the acquiree. The measurement of non-controlling interest is at fair value and is determined on a transaction by transaction basis. Acquisition costs are expensed as incurred. Goodwill is initially measured at cost, being the excess of the aggregate of the acquisition-date fair value of the consideration transferred and the amount recognized for the non-controlling interest over the net identifiable amounts of the assets acquired and the liabilities assumed in exchange for the business combination. After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill is tested annually for impairment and is tested for impairment more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test is performed using a two-step process. In the first step, the fair value of each reporting unit is compared with the carrying amount of the reporting unit, including goodwill. If the estimated fair value is less than the carrying amount of the reporting unit there is an indication that goodwill impairment exists and a second step must be completed in order to determine the amount of the goodwill impairment, if any, that should be recorded. In the second step, an impairment loss is recognized for any excess of the carrying amount of the reporting unit’s goodwill over the implied fair value of that goodwill. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to the Company's reporting units that are expected to benefit from the combination. 1. Summary of Significant Accounting Policies (continued) Goodwill and other long-lived assets (continued) Assumptions and judgments are required in calculating the fair value of the reporting units. In developing our discounted cash flow analysis, assumptions about future revenues and expenses, capital expenditures and changes in working capital are based on our annual operating plan and long-term business plan for each of our reporting units. These plans take into consideration numerous factors including historical experience, anticipated future economic conditions, changes in raw material prices and growth expectations for the industries and end markets we participate in. These assumptions are determined over a three year long-term planning period. The three year growth rates for revenues and operating profits vary for each reporting unit being evaluated. Revenues and operating profit beyond 2022 are projected to grow at a perpetual growth rate of 2.2% . Discount rate assumptions for each reporting unit take into consideration our assessment of risks inherent in the future cash flows of the respective reporting unit and our weighted-average cost of capital. We utilized discount rates ranging from 6.4% to 9.1% in determining the discounted cash flows in our fair value analysis. The fair value of the reporting units substantially exceeded the carrying value for all reporting units that have goodwill allocated, except Superform, where an impairment to goodwill has been recognized for the full amount, $1.3 million . A bargain purchase is measured at cost being the excess of the net identifiable amounts of the assets acquired and the liabilities assumed in exchange for the business combination over the aggregate of the acquisition-date fair value of the consideration transferred and the amount recognized for the non-controlling interest, if any. If after reassessing the fair values the conclusion remains that there has been a bargain purchase gain, then any amount of a bargain purchase is recognized immediately as income. Contingent consideration arising as a result of a business combination is recognized at fair value at the acquisition date. Subsequent changes in the fair value of contingent consideration classified as an asset or liability are recorded as either a gain or a loss within acquisition related costs / credits in the consolidated statements of income. Other intangible assets are measured initially at cost, or where acquired in a business combination at fair value, and are amortized on a straight-line basis over their estimated useful lives as shown in the table below. Customer relationships 10 – 15 years Technology and trading related 5 – 25 years The carrying values are reviewed for impairment when events or changes in circumstances indicate that the carrying value may not be recoverable. Reviews are made annually of the estimated remaining lives and residual values of the patents and trademarks. |
Variable interest entities | We have interests in certain joint venture entities that are variable interest entities ("VIEs"). Determining whether to consolidate a VIE may require judgment in assessing (i) whether an entity is a VIE and (ii) if we are the entity's primary beneficiary and thus required to consolidate the entity. To determine if we are the primary beneficiary of a VIE, we evaluate whether we have (i) the power to direct the activities that most significantly impact the VIE's economic performance and (ii) the obligation to absorb losses or the right to receive benefits of the VIE that could potentially be significant to the VIE. Our evaluation includes identification of significant activities and an assessment of our ability to direct those activities based on governance provisions and arrangements to provide or receive product and process technology, product supply, operations services, equity funding and financing and other applicable agreements and circumstances. Our assessment of whether we are a primary beneficiary of our VIEs requires the application of significant assumptions and judgment. |
Property, plant and equipment, net | Property, plant and equipment is stated at historic cost less accumulated depreciation and any impairment in value. Depreciation is initially calculated on a straight-line basis over the estimated useful life of the particular asset. The depreciation expense during 2018 , 2017 and 2016 was $17.8 million , $17.0 million and $17.0 million , respectively. As a result of the complexity of our manufacturing process, there is a wide range of plant and equipment in operation. The estimated useful lives is summarized as follows: Freehold buildings 10 - 33 years Leasehold land and buildings The lesser of life of lease or freehold rate Machinery and equipment 3 - 25 years Including: Heavy production equipment (including casting, rolling, extrusion and press equipment) 20 - 25 years Chemical production plant and robotics 7 - 10 years Other production machinery 5 - 10 years Furniture, fittings, storage and equipment 3 - 10 years Computer software 4 - 7 years Freehold land is not depreciated. Reviews are made annually of the estimated remaining lives and residual values of individual productive assets, taking account of commercial and technological obsolescence as well as normal wear and tear. 1. Summary of Significant Accounting Policies (continued) Property, plant and equipment, net (continued) We review the carrying value for any individual asset for impairment when events or changes in circumstances indicate the carrying value may not be recoverable. If any such indication exists and where the carrying value exceeds the estimated recoverable amount, the asset is written-down to its estimated recoverable amount. The assessment of possible impairment is based on our ability to recover the carrying value of the asset or asset group from the expected future pre-tax cash flows (undiscounted and without interest charges) of the related operations. If these cash flows are less than the carrying value of such asset or asset group, an impairment loss is recognized for the difference between estimated fair value and carrying value. Impairment losses on long-lived assets held for sale are determined in a similar manner, except that fair values are reduced for the cost to dispose of the assets. The measurement of impairment requires us to estimate future cash flows and the fair value of long-lived assets. |
Revenue recognition | The Company has adopted ASU 2014-09, "Revenue from Contracts with Customers" (Topic 606), and all subsequent amendments using the full retrospective method for all periods presented. The impact to our fiscal quarters and year-ended 2018 , 2017 and 2016 , net income and basic and diluted earnings per share (EPS) was not material. In addition, there was no cumulative impact to our retained earnings at January 1, 2016 . A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. The majority of the Company’s contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. There is no variable consideration or obligations for returns, refunds, and no other related obligations in the Company’s contracts. Payment terms and conditions vary by contract type and may include a requirement of payment in advance. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts do not include a significant financing component. The Company’s revenue is primarily derived from the following sources and are recognized when or as the Company satisfies a performance obligation by transferring a good or service to a customer. Product revenues We recognize revenue when it is realized or realizable and has been earned. Revenue is recognized when persuasive evidence of an arrangement exists, shipment or delivery has occurred (depending on the terms of the sale), which is when the transfer of product or control occurs, our price to the buyer is fixed or determinable, and the ability to collect is reasonably assured. 1. Summary of Significant Accounting Policies (continued) Revenue Recognition (continued) Royalties Royalty revenue is recognized on an accrual basis in accordance with the substance of the relevant agreements, provided that it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably. Tooling revenue Revenue from certain long-term tooling contracts is recognized over the contractual period under the cost-to-cost measure of progress as this is when the benefit is received by the customer. Incremental direct costs associated with the contract include, direct labor hours, direct raw material costs and other associated costs. Under this method, sales and gross profit are recognized as work is performed either based on the relationship between the actual costs incurred and the total estimated costs at completion (“the cost-to-cost method”) or based on efforts for measuring progress towards completion in situations in which this approach is more representative of the progress on the contract than the cost-to-cost method. We record costs and earnings in excess of billings on uncompleted contracts within Other current assets and billings in excess of costs and earnings on uncompleted contracts within Other current liabilities in the Consolidated Balance Sheets. Where customer acceptance is on final completion and handover of the tool, revenue is recognized at the point the customer accepts ownership of the tool. Practical Expedients The Company has applied the transition practical expedient and does not disclose the amount of the transaction price allocated to the remaining performance obligations and an explanation of when the Company expects to recognize that amount as revenue for the fiscal year beginning January 1, 2016. In addition, the Company applies the practical expedient and does not disclose information about remaining performance obligations for contracts that have original expected durations of one year or less. |
Cash and Cash Equivalents | We consider all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Restricted cash is recognized separately in the Consolidated Balance Sheets. |
Inventories | Inventories are stated at the lower of cost or net realizable value. Raw materials are valued on a first-in, first-out basis. Strategic purchases of inventories in order to secure supply and reduce the impact of price volatility on the cost of inventories are valued on a weighted-average cost basis. Work in progress and finished goods costs comprise direct materials and, where applicable, direct labor costs, an apportionment of production overheads and any other costs that have been incurred in bringing the inventories to their present location and condition. Inventories are reviewed on a regular basis, and we will make allowance for excess or obsolete inventories and write-down to net realizable value based primarily on committed sales prices and our estimates of expected and future product demand and related pricing. |
Research and Development | Included within research and development costs are directly attributable salaries, materials and consumables, as well as third-party contractor fees and research costs. These costs are expensed as incurred. |
Foreign currencies | Transactions in currencies other than an operation's functional currency are initially recorded in the functional currency at the rate of exchange prevailing on the dates of transactions. At each balance sheet date, the foreign currency monetary assets and liabilities of each operation are translated into the functional currency of that operation at the rates prevailing on the balance sheet date. All differences are taken to the consolidated statement of income / (loss), with the exception of differences on foreign currency borrowings that provide a hedge against a net investment in a foreign entity. These differences on foreign currency borrowings are taken directly to equity until the disposal of the net investment, at which time they are recognized in the consolidated statement of income / (loss). Tax charges and credits attributable to exchange differences on those borrowings are also included in equity. On consolidation, the assets and liabilities of the Company's foreign operations are translated at exchange rates prevailing on the balance sheet date. Income and expense items are translated at the average exchange rates for the period. Exchange differences that arise, if any, are included in Accumulated other comprehensive income / (loss) (“AOCI”), a separate component of equity. Such translation differences are recognized in the consolidated statements of income / (loss) in the period in which the Company loses control of the operation or liquidation. |
Income taxes | Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. When the Company does not believe that, on the basis of available information, it is more likely than not that deferred tax assets will be fully recovered, it recognizes a valuation allowance against its deferred tax assets to reduce the deferred tax assets to the amount more likely than not to be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactments date. Furthermore, a tax benefit from a tax position may be recognized in the financial statements only if it is more-likely-than-not that the position is sustainable, based solely on its technical merits and consideration of the relevant tax authority’s widely understood administrative practices and precedents. The tax benefit recognized, when the likelihood of realization is more likely-than-not (i.e. greater than 50 percent), is measured at the largest amount that is greater than 50 percent likely of being realized upon settlement. |
Employee benefit plans | The Company operates funded defined benefit pension plans in the U.K., the U.S. and France. The levels of funding are determined by periodic actuarial valuations that take into account changes in actuarial assumptions, including discount rates and expected returns on plan assets. The assets of the plans are generally held in separate trustee-administered funds. The Company also operates defined contribution plans in the U.K., the U.S., Australia and Canada. 1. Summary of Significant Accounting Policies (continued) Employee benefit plans (continued) Actuarial assumptions are updated annually and are disclosed in Note 12. We recognize changes in the fair value of plan assets and net actuarial gains or losses for pension and other post-retirement benefits annually in the fourth quarter each year (“mark-to-market adjustment”) and, if applicable, in any quarter in which an interim remeasurement is triggered. Net actuarial gains and losses occur when the actual experience differs from any of the various assumptions used to value our pension and other post-retirement plans or when assumptions change, as they may each year. The remaining components of pension expense, including service and interest costs and estimated return on plan assets, are recorded on a quarterly basis. Payments to defined contribution plans are charged as an expense as they fall due. |
Commitments and contingencies | Loss contingencies are recognized when the Company has a present obligation as a result of a past event, it is probable that a transfer of resources will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. |
Share based compensation | We account for share-based compensation awards on a fair value basis. The estimated grant date fair value of each option award is recognized in income on an accelerated basis over the requisite service period (generally the vesting period). The estimated fair value of each option award is calculated using the Black-Scholes option-pricing model, which is subjective and involves the application of significant estimates and assumptions, including the expected term of the award, implied volatility, expected dividend yield and the risk-free interest rate. Restricted share awards and units are recorded as compensation cost on an accelerated basis over the requisite service periods based on the market value on the date of the grant. Performance share units ("PSU") are stock awards where the ultimate number of shares issued will be contingent on the Company's performance against certain financial performance targets. The fair value of each PSU is based on the market value on the date of grant. We recognize expense based upon the fair value of the awards on the grant date and the estimated vesting of the PSUs granted. The estimated vesting of the performance share units is based on the probability of achieving certain financial performance thresholds over the specified performance period. |
Trade receivables | We record an allowance for doubtful accounts, reducing our receivables balance to an amount we estimate is collectible from our customers. Estimates used in determining the allowance for doubtful accounts are based on current trends, aging of accounts receivable, periodic credit evaluations of our customers’ financial condition, and historical collection experience. |
Concentration of credit risk | We are exposed to credit risk in the event of nonpayment by customers. However we mitigate our exposure to credit risk by performing ongoing credit evaluations and, when deemed necessary, utilizing credit insurance, prepayments or guarantees. No individual customer represented more than 10% of our revenue or accounts receivable. The concentration of credit risks from financial instruments related to the markets we serve is not expected to have a material adverse effect on our consolidated financial position, cash flows or future results of operations. |
Derivative financial instruments | We recognize all derivatives as either assets or liabilities (within accounts and other receivables, accounts payable, other non-current assets and other non-current liabilities) at fair value in our Consolidated Balance Sheets. If the derivative is designated and is effective as a cash-flow hedge, changes in the fair value of the derivative are recorded in AOCI as a separate component of equity in the Consolidated Statements of Changes in Equity and are recognized in cost of goods sold in the Consolidated Statements of Income / (loss) when the hedged item affects earnings. If the underlying hedged transaction ceases to exist or if the hedge becomes ineffective, all changes in fair value of the related derivatives that have not been settled are recognized in current earnings in cost of goods sold. For a derivative that is not designated as or does not qualify as a hedge, changes in fair value are reported in income immediately, again in cost of goods sold. We use derivative instruments for the purpose of hedging commodity price risk and currency exposures, which exist as part of ongoing business operations. |
New accounting standards | The Company adopted ASU 2017-07 (Topic 715), "Improving the Presentation of Net Periodic Pension Cost and Net Periodic Post-Retirement Benefit Cost," on January 1, 2017. The standard was amended to include guidance on the presentation of net periodic pension and post-retirement benefit cost (net benefit cost) and (ii) requires the service cost component to be presented with other employee compensation costs in net income / (loss) or when eligible capitalized in assets. As no service costs were capitalized as part of the net benefit cost, we adopted the new standard on a retrospective basis. The Company adopted ASU 2014-09 "Revenue from Contracts with Customers" ASC Topic 606, and all subsequent amendments on January 1, 2016. The standard outlines a five-step model whereby revenue is recognized as performance obligations within a contract are satisfied. The standard also requires new, expanded disclosures regarding revenue recognition. We adopted the new standard using the full retrospective transition method for all periods presented. Accounting standards which have been early adopted Under U.S. GAAP, shares withheld by the company to pay the employees statutory minimum tax can still be classified as equity awards if all other criteria for such classification are met. Upon adoption of ASU 2016-09, an award containing a net settled tax withholding clause could be equity-classified so long as the arrangement limits tax withholding to the maximum individual statutory tax rate in a given jurisdiction. If tax withholding is permitted at some higher rate, then the whole award would be classified as a liability. Accounting standards issued but not yet effective In June 2016, the Financial Accounting Standards Board ("FASB") issued new accounting requirements regarding the measurement of credit losses on financial instruments, along with additional qualitative and quantitative disclosures. The new standard is effective for fiscal years beginning after December 15, 2019. The Company anticipates that the timing of the recognition of impairments to accounts, notes and other receivables will change rather than the size of the balance. In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ASU 2016-02, “Leases” (“ASU 2016-02”). ASU 2016-02 requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Additionally, ASU 2016-02 modifies current guidance for lessors' accounting. ASU 2016-02 is effective for interim and annual reporting periods beginning on or after January 1, 2019, with early adoption permitted. Upon adoption, the Company recognized lease liabilities and the corresponding right-of-use assets (at the present value of future payments) for predominantly all of its future minimum commitments under operating leases in place at that time. At January 1, 2019, adoption of ASU 2016-02 resulted in an increase of $15.6 million on its assets and liabilities in its statement of financial position. ASU 2016-02 did not have a material impact on its results of operations or cash flows. In addition to the guidance in ASU 2016-02, the Company has evaluated ASU 2018-11, which was issued in July 2018, and provides an optional transitional method. As a result of this evaluation, the Company elected to use the optional transitional method, which allows companies to use the effective date as the date of initial application on transition and not adjust comparative period financial information or make the new required disclosures for periods prior to the effective date. Additionally, the Company elected to use the package of practical expedients permitted under the transition guidance within the new standard. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Investments in Affiliates | The company owns interests in the following affiliates: Name of company Country of incorporation Holding Proportion of voting rights and shares held Classification Consolidation method Luxfer Uttam India Private Limited India Ordinary shares 51% Joint venture (VIE) Equity method Nikkei-MEL Co. Limited Japan Ordinary shares 50% Joint venture Equity method Sub161 Pty Limited Australia Ordinary shares 26.4% Associate (VIE) Equity method |
Schedule of Property, Plant and Equipment Useful Life | The estimated useful lives is summarized as follows: Freehold buildings 10 - 33 years Leasehold land and buildings The lesser of life of lease or freehold rate Machinery and equipment 3 - 25 years Including: Heavy production equipment (including casting, rolling, extrusion and press equipment) 20 - 25 years Chemical production plant and robotics 7 - 10 years Other production machinery 5 - 10 years Furniture, fittings, storage and equipment 3 - 10 years Computer software 4 - 7 years |
Acquisitions and disposals Acqu
Acquisitions and disposals Acquisitions and disposals (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition | Years ended December 31, In millions 2018 2017 Net cash flows on purchase of business: Included in net cash flows from investing activities: Consideration paid $ — $ (4.3 ) Cash receipt on disposal of business — 0.1 Acquisition and disposal costs paid — (0.5 ) Cash acquired 2.7 — Net cash flows on purchase of business $ 2.7 $ (4.7 ) Years ended December 31, In millions 2018 2017 Net cash flows on purchase of business: Included in net cash flows from financing activities: Deferred consideration paid $ (0.8 ) $ (1.4 ) Net cash flows on purchase of business $ (0.8 ) $ (1.4 ) |
Earnings per share Earnings per
Earnings per share Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | Basic and diluted earnings per share were calculated as follows: Years ended December 31, In millions except share and per-share data 2018 2017 2016 Basic earnings: Net income $ 25.0 $ 16.6 $ 17.8 Weighted average number of £0.50 ordinary shares: For basic earnings per share 26,708,469 26,460,947 26,443,662 Dilutive effect of potential common stock 983,793 263,034 210,976 For diluted earnings per share 27,692,262 26,723,981 26,654,638 Earnings per share using weighted average number of ordinary shares outstanding: Basic earnings per ordinary share $ 0.94 $ 0.63 $ 0.67 Diluted earnings per ordinary share $ 0.90 $ 0.62 $ 0.67 |
Revenue Revenue (Tables)
Revenue Revenue (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregated revenue disclosures for the fiscal years ended December 31, 2018 , December 31, 2017 , and December 31, 2016 , are included below and in Note 15, Segmental Information. Years ended December 31, 2018 2017 2016 In millions Gas Cylinders Elektron Total Gas Cylinders Elektron Total Gas Cylinders Elektron Total General industrial $ 50.7 $ 123.9 $ 174.6 $ 49.6 $ 95.6 $ 145.2 $ 45.7 $ 85.7 $ 131.4 Transportation 79.0 72.8 151.8 63.8 66.5 130.3 72.9 62.9 135.8 Defense and emergency 79.3 49.4 128.7 76.5 54.1 130.6 83.1 36.2 119.3 Healthcare 29.1 3.7 32.8 30.3 4.9 35.2 24.1 4.2 28.3 $ 238.1 $ 249.8 $ 487.9 $ 220.2 $ 221.1 $ 441.3 $ 225.8 $ 189.0 $ 414.8 |
Schedule of Contract Assets and Liabilities | The following table provides information about contract receivables, contract assets and contract liabilities from contracts with customers: In millions December 31, 2018 December 31, 2017 Contract receivables $ 1.5 $ 1.6 Contract assets 2.1 4.6 Contract liabilities (1.1 ) (0.9 ) Contract liabilities of $1.1 million consist of advance payments and billing above costs incurred and are recognized as other current liabilities . Significant changes in contract liabilities balances during the period are as follows: In millions 2018 2017 As at January 1, $ (0.9 ) $ (0.2 ) Payments received / amounts billed (3.8 ) (2.2 ) Costs incurred / revenue recognized 3.6 1.5 As at December 31, $ (1.1 ) $ (0.9 ) |
Restructuring (Tables)
Restructuring (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | Restructuring related costs included in Restructuring charges in the Consolidated statement of income / (loss) are as follows: Years ended December 31, In millions 2018 2017 2016 Severance and related costs $ (6.7 ) $ (4.6 ) $ (0.4 ) Asset impairment (6.8 ) (2.3 ) — Other 0.1 (1.5 ) — Total restructuring charges $ (13.4 ) $ (8.4 ) $ (0.4 ) Other restructuring costs primarily consist of various contract termination and revision costs as well as legal costs. Restructuring costs by reportable segment were as follows: Years ended December 31, In millions 2018 2017 2016 Gas Cylinders segment $ (10.0 ) $ (2.9 ) $ — Elektron segment (3.4 ) (5.5 ) (0.4 ) Total restructuring charges $ (13.4 ) $ (8.4 ) $ (0.4 ) |
Schedule of Restructuring Reserve | Activity related to restructuring, recorded in other current liabilities in the consolidated balance sheets is summarized as follows: In millions 2018 2017 Balance at January 1, $ 2.1 $ 0.8 Costs incurred 6.6 6.1 Cash payments and other (3.5 ) (4.8 ) Balance at December 31, $ 5.2 $ 2.1 |
Goodwill and other identifiab_2
Goodwill and other identifiable intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in goodwill during the years ended December 31, 2018 and 2017 were as follows: In millions Gas Cylinders Elektron Total At January 1, 2017 $ 27.0 $ 40.9 $ 67.9 Exchange difference 2.0 1.3 3.3 At December 31, 2017 $ 29.0 $ 42.2 $ 71.2 Impairment (1.3 ) — (1.3 ) Exchange difference (1.4 ) (0.9 ) (2.3 ) Net balance at December 31, 2018 $ 26.3 $ 41.3 $ 67.6 |
Schedule of Intangible Assets | Identifiable intangible assets consisted of the following: December 31, 2018 December 31, 2017 In millions Gross Accumulated amortization Net Gross Accumulated amortization Net Customer relationships $ 13.4 $ (3.8 ) $ 9.6 $ 13.4 $ (2.9 ) $ 10.5 Technology and trading related 7.9 (2.9 ) 5.0 8.6 (3.0 ) 5.6 $ 21.3 $ (6.7 ) $ 14.6 $ 22.0 $ (5.9 ) $ 16.1 |
Supplementary balance sheet i_2
Supplementary balance sheet information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Balance Sheet | Supplementary balance sheet information In millions 2018 2017 Accounts and other receivables Trade receivables $ 49.8 $ 53.8 Related parties 0.9 1.8 Prepayments and accrued income 7.7 10.5 Derivative financial instruments 0.1 2.1 Other receivables 4.2 4.2 Total accounts and other receivables $ 62.7 $ 72.4 Inventories Raw materials and supplies $ 30.5 $ 31.0 Work-in-process 33.1 28.1 Finished goods 30.0 23.1 Total inventories $ 93.6 $ 82.2 Other current assets Held-for-sale assets $ 10.7 $ — Income tax receivable — 1.2 Total other current assets $ 10.7 $ 1.2 Property, plant and equipment, net Land, buildings and leasehold improvements $ 73.3 $ 80.8 Machinery and equipment 286.0 292.7 Construction in progress 10.1 6.7 Total property plant and equipment 369.4 380.2 Accumulated depreciation and impairment (262.5 ) (251.1 ) Total property, plant and equipment, net $ 106.9 $ 129.1 Other non-current assets Derivative financial instruments $ — $ 0.3 Total other non-current assets $ — $ 0.3 Current maturities of long-term debt and short-term borrowings Bank and other loans $ — $ 15.0 Overdrafts 3.5 4.2 Total current maturities of long-term debt and short-term borrowings $ 3.5 $ 19.2 Other current liabilities Contingent liabilities $ 5.3 $ 2.8 Held-for-sale liabilities 2.5 — Derivative financial instruments — 1.5 Other current liabilities 4.1 2.1 Total other current liabilities $ 11.9 $ 6.4 Other non-current liabilities Contingent liabilities $ 0.8 $ 1.1 Derivative financial instruments — 0.4 Other non-current liabilities 0.5 1.7 Total other non-current liabilities $ 1.3 $ 3.2 |
Schedule of Current Held-for-Sale Assets and Liabilities | 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, 2018 In millions Property, plant and equipment $ 5.5 Inventory 2.9 Accounts and other receivables 2.3 Held-for-sale assets $ 10.7 Reclassified to held-for-sale liabilities Accounts payables $ 2.5 Held-for-sale liabilities $ 2.5 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Components of Accumulated Other Comprehensive Loss consist of the following: In millions December 31, 2018 December 31, 2017 Cumulative translation adjustments $ (55.6 ) $ (49.2 ) Pension plans actuarial loss, net of tax (90.2 ) (91.3 ) Change in market value of derivative financial instruments, net of tax (0.8 ) (0.2 ) Accumulated other comprehensive loss $ (146.6 ) $ (140.7 ) |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt outstanding was as follows: In millions December 31, 2018 December 31, 2017 6.19% Loan Notes due 2018 $ — $ 15.0 3.67% Loan Notes due 2021 25.0 25.0 4.88% Loan Notes due 2023 25.0 25.0 4.94% Loan Notes due 2026 25.0 25.0 Revolving credit facility — 21.3 Other - Bank overdraft 3.5 4.2 Unamortized debt issuance costs (1.4 ) (1.7 ) Total debt $ 77.1 $ 113.8 Less current portion $ (3.5 ) $ (19.2 ) Non-current debt $ 73.6 $ 94.6 |
Schedule of Maturities of Company's Debt | The maturity profile of the Company's debt, excluding unamortized issuance costs and discounts is as follows: In millions 2019 2020 2021 2022 2023 Thereafter Total Loan Notes due 2021 $ — $ — $ 25.0 $ — $ — $ — $ 25.0 Loan Notes due 2023 — — — — 25.0 — 25.0 Loan Notes due 2026 — — — — — 25.0 25.0 Other 3.5 — — — — — 3.5 Total debt $ 3.5 $ — $ 25.0 $ — $ 25.0 $ 25.0 $ 78.5 |
Derivatives and Financial Ins_2
Derivatives and Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The contract totals in GBP sterling and euros, range of maturity dates and range of exchange rates are disclosed below, with the value denominated in GBP sterling given that is the currency the majority of the contracts are held in. 10. Derivatives and Financial Instruments (continued) Fair value of financial instruments (continued) December 31, 2018 Sales hedges U.S. dollars Euros Contract totals/£m 4.8 7.2 Maturity dates 01/19 to 07/19 01/19 to 07/19 Exchange rates $1.2519 to $1.3419 €1.0949 to €1.1702 Purchase hedges U.S. dollars Euros Canadian dollars Czech koruna Contract totals/£m 7.5 1.7 2.9 0.1 Maturity dates 01/19 to 07/19 01/19 to 06/19 01/19 to 03/19 01/19 Exchange rates $1.2609 to $1.3380 €1.1074 to €1.1221 $1.7039 to $1.7416 CZK 28.4490 December 31, 2017 Sales hedges U.S. dollars Euros Australian dollars Contract totals/£m 17.1 27.5 2.8 Maturity dates 01/18 to 07/19 01/18 to 07/19 06/18 Exchange rates $1.2433 to $1.3444 €1.0949 to €1.1803 $1.7667 Purchase hedges U.S. dollars Euros Australian dollars Contract totals/£m 12.5 0.1 1.7 Maturity dates 01/18 to 07/19 01/18 06/18 Exchange rates $1.2414 to $1.3389 €1.1084 1.7161 |
Schedule of fair values of the financial instruments | The fair values of the financial instruments of the Group at December 31, 2018 , were analyzed using the hierarchy as follows: In millions Total Level 1 Level 2 Level 3 Derivative financial assets: Foreign currency contract assets $ 0.1 $ — $ 0.1 $ — Interest bearing loans and borrowings: Loan Notes due 2021 (24.8 ) — (24.8 ) — Loan Notes due 2023 (25.9 ) — (25.9 ) — Loan Notes due 2026 (26.4 ) — (26.4 ) — Other financial liabilities: Deferred contingent consideration (0.9 ) — — (0.9 ) |
Schedule of changes in Level 3 instruments | The following table presents the changes in Level 3 instruments for the year ended December 31, 2018 . In millions 2018 Balance at January 1 $ 1.0 Payments made during year (0.8 ) Unwind of discount on deferred consideration (0.2 ) Remeasurement of deferred consideration (recognized in acquisition-related costs) 0.9 Balance at December 31 $ 0.9 Total losses for the period included in profit and loss for assets held at the end at December 31 0.7 Change in unrealized (gains) or losses for the period included in profit and loss for assets held at the end at December 31 $ 0.7 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Taxes | Income before income taxes consisted of the following: Years ended December 31, In millions 2018 2017 2016 U.K. $ 26.2 $ (3.0 ) $ 13.1 International (1) 4.3 22.9 11.5 Income before income taxes $ 30.5 $ 19.9 $ 24.6 (1) "International" reflects non-U.K. income before income taxes. |
Schedule of Provision for Income Taxes | The provision for income taxes consisted of the following: Years ended December 31, In millions 2018 2017 2016 Currently payable U.K. $ 0.2 $ (0.2 ) $ 0.3 International (1) 5.1 6.2 3.6 Total current taxes $ 5.3 $ 6.0 $ 3.9 Deferred U.K. $ 3.4 $ (0.1 ) $ 3.4 International (1) (3.2 ) (2.6 ) (0.5 ) Total deferred taxes $ 0.2 $ (2.7 ) $ 2.9 Total provision for income taxes $ 5.5 $ 3.3 $ 6.8 (1) "International" reflects non-U.K. income before income taxes. |
Reconciliation of Income before Income Taxes and Total Provision for Income Taxes | Differences between the financial reporting and the corresponding tax basis of assets and liabilities and the different income tax rates and laws applicable to the Company, among other factors, give rise to permanent differences between the statutory tax rate applicable in the U.K. and the effective tax rate presented in the consolidated income statement, which in 2018 , 2017 and 2016 were as follows: Years ended December 31, In millions 2018 2017 2016 Income before income taxes $ 30.5 $ 19.9 $ 24.6 Provision for income taxes at the U.K. statutory tax rate (2018: 19%, 2017:19.25%, 2016: 20.0%) 5.8 3.8 4.9 Effect of: Non-deductible expenses 0.1 0.8 0.4 Movement in valuation allowances — (0.9 ) 0.7 Differences in income tax rates in countries where the Company operates (1) 0.3 2.2 (0.5 ) Effect of U.S. tax reform — (4.0 ) — Effect of changes in tax rates (excluding U.S. tax reform) (2) 0.2 1.1 — Movement in uncertain tax positions 0.1 0.9 0.9 Other (1.0 ) (0.6 ) 0.4 Total provision for income taxes $ 5.5 $ 3.3 $ 6.8 (1) Refers mainly to the effects of the differences between the statutory income tax rate in the U.K. against the applicable income tax rates of each country where the Company operates. (2) The U.K. corporation tax rate decreased from 21% to 20% with effect from April 1, 2015, and from 20% to 19% with effect from April 1, 2017. A further reduction in the U.K. corporation tax rate is expected to 17% from April 1, 2020. |
Schedule of Unrecognized Tax Benefits | Reconciliations of the beginning and ending gross unrecognized tax benefits were as follows: Years ended December 31, In millions 2018 2017 2016 Beginning balance $ 2.8 $ 1.9 $ 1.0 Gross increases based on tax positions related to the current year 1.4 1.0 0.9 Reductions due to expiry of statute of limitations (1.0 ) (0.1 ) — Ending balance $ 3.2 $ 2.8 $ 1.9 Non-current $ 3.2 $ 2.8 $ 1.9 |
Summary of Tax Years Open by Major Tax Jurisdiction | The following is a summary of the tax years open by major tax jurisdiction: Jurisdiction Years open U.K. 2017 - 2018 U.S. Federal 2016 - 2018 U.S. State and local 2015 - 2018 France 2016 - 2018 Czech Republic 2015 - 2018 Germany 2015 - 2018 China 2016 - 2018 Canada 2015 - 2018 |
Schedule of Deferred Tax Assets and Liabilities | Deferred taxes were recorded in the Consolidated Balance Sheets as follows: December 31, In millions 2018 2017 Other non-current assets $ 18.6 $ 20.8 Other non-current liabilities (3.5 ) (4.2 ) Net deferred tax assets $ 15.1 $ 16.6 The tax effects of the major items recorded in deferred tax assets and liabilities were as follows: December 31, In millions 2018 2017 Deferred tax assets Pension benefits $ 7.7 $ 10.9 Tax loss and credit carry forwards 20.7 24.8 Other 5.2 1.6 Total deferred tax assets 33.6 37.3 Valuation allowances (15.0 ) (15.0 ) Deferred tax assets, net of valuation allowances $ 18.6 $ 22.3 Deferred tax liabilities Property, plant and equipment $ 3.5 $ 5.7 Total deferred tax liabilities $ 3.5 $ 5.7 Net deferred tax assets $ 15.1 $ 16.6 |
Pension Plans (Tables)
Pension Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Reconciliations of Plan Benefit Obligation, Fair Value of Plan Assets and Funded Status of Pension Plans | he following tables present reconciliations of plan benefit obligations, fair value of plan assets and the funded status of pension plans as of and for the years ended December 31, 2018 and 2017 : 2018 2018 2018 2017 2017 2017 In millions U.K. U.S./ other Total U.K. U.S./ other Total Change in benefit obligations Benefit obligation at January 1 $ 369.7 $ 53.1 $ 422.8 $ 334.8 $ 48.6 $ 383.4 Service cost — 0.1 0.1 — 0.1 0.1 Interest cost 8.6 1.8 10.4 8.9 1.9 10.8 Actuarial (gain) / loss (27.7 ) (5.9 ) (33.6 ) 10.1 4.3 14.4 Exchange difference (19.7 ) (0.1 ) (19.8 ) 32.0 0.3 32.3 Benefits paid (17.9 ) (2.2 ) (20.1 ) (16.1 ) (2.1 ) (18.2 ) Prior service cost 2.2 — 2.2 — — — Benefit obligation at December 31 $ 315.2 $ 46.8 $ 362.0 $ 369.7 $ 53.1 $ 422.8 Change in plan assets Fair value of plan assets at January 1 $ 326.3 $ 41.2 $ 367.5 $ 280.3 $ 36.6 $ 316.9 Actual return on assets (13.0 ) (2.5 ) (15.5 ) 27.7 4.8 32.5 Exchange difference (17.8 ) — (17.8 ) 27.4 — 27.4 Contributions from employer 5.8 2.1 7.9 7.0 1.9 8.9 Benefits paid (17.9 ) (2.2 ) (20.1 ) (16.1 ) (2.1 ) (18.2 ) Fair value of plan assets at December 31 $ 283.4 $ 38.6 $ 322.0 $ 326.3 $ 41.2 $ 367.5 Funded status Benefit obligations in excess of the fair value of plan assets $ (31.8 ) $ (8.2 ) $ (40.0 ) $ (43.4 ) $ (11.9 ) $ (55.3 ) |
Schedule of Net Benefit Costs | The amounts recognized in the consolidated statements of income in respect of the pension plans were as follows: 2018 2018 2018 2017 2017 2017 2016 2016 2016 In millions U.K. U.S. / other Total U.K. U.S. / other Total U.K. U.S. / other Total In respect of defined benefit plans: Current service cost $ — $ 0.1 $ 0.1 $ — $ 0.1 $ 0.1 $ 0.3 $ 0.1 $ 0.4 Interest cost 8.6 1.8 10.4 8.9 1.9 10.8 10.9 2.5 13.4 Expected return on assets (14.5 ) (2.2 ) (16.7 ) (14.8 ) (1.8 ) (16.6 ) (14.1 ) (2.3 ) (16.4 ) Settlement loss — — — — — — — 4.3 4.3 Amortization of net actuarial loss 2.3 0.4 2.7 2.5 0.3 2.8 1.9 0.4 2.3 Amortization of prior service credit (0.5 ) — (0.5 ) (0.5 ) — (0.5 ) (0.5 ) — (0.5 ) Total (credit) / charge for defined benefit plans $ (4.1 ) $ 0.1 $ (4.0 ) $ (3.9 ) $ 0.5 $ (3.4 ) $ (1.5 ) $ 5.0 $ 3.5 In respect of defined contribution plans: Total charge for defined contribution plans $ 2.1 $ 2.3 $ 4.4 $ 1.9 $ 2.1 $ 4.0 $ 1.6 $ 2.1 $ 3.7 Total (credit) / charge for pension plans $ (2.0 ) $ 2.4 $ 0.4 $ (2.0 ) $ 2.6 $ 0.6 $ 0.1 $ 7.1 $ 7.2 |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | The following table shows other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) ("AOCI") during the years ended December 31: In millions 2018 2017 Net actuarial gain $ 1.4 $ 1.6 Amortization of net gain 2.7 2.8 Prior service cost (2.2 ) — Amortization of prior service credit (0.5 ) (0.5 ) Total recognized in other comprehensive income 1.4 3.9 Total credit recognized in net periodic benefit cost and other comprehensive income $ 5.4 $ 7.3 The following table shows the amounts included in AOCI that have not yet been recognized as components of net periodic benefit cost for the years ended December 31: In millions 2018 2017 Net actuarial loss $ (136.4 ) $ (140.5 ) Net prior service credit 12.7 15.5 Total included in AOCI not yet recognized in the statement of income $ (123.7 ) $ (125.0 ) |
Schedule of Assumptions Used | The inflation rate is derived using a similar cash flow matched methodology as used for the discount rate but having regard to the difference between yields on fixed-interest and index-linked United Kingdom government gilts. The expected return on assets assumption is set having regard to the asset allocation and expected return on each asset class as at the balance sheet date. 2018 2017 Other principal actuarial assumptions: Years Years Life expectancy of male / female in the U.K. aged 65 at accounting date 21.4 / 24.1 21.6 / 24.6 Life expectancy of male / female in the U.K. aged 65 at 20 years after accounting date 22.8 / 25.7 23.3 / 26.5 The financial assumptions used in the calculations were: Projected Unit Credit Valuation U.K. U.S. 2018 2017 2016 2018 2017 2016 % % % % % % Discount rate 2.90 2.40 2.60 4.20 3.60 4.20 Expected return on assets 4.90 4.80 5.20 6.20 6.00 6.30 Retail price inflation 3.30 3.10 3.20 n/a n/a n/a Inflation related assumptions: Salary inflation n/a n/a n/a n/a n/a n/a Consumer price inflation 2.20 2.10 2.20 n/a n/a n/a Pension increases—pre April 6, 1997 2.00 1.90 2.00 n/a n/a n/a —1997 - 2005 2.20 2.10 2.20 n/a n/a n/a —post April 5, 2005 1.80 1.70 1.80 n/a n/a n/a |
Schedule of Allocation of Plan Assets | The fair value of plan assets were: 2018 2018 2018 2017 2017 2017 In millions U.K. U.S./ other Total U.K. U.S./ other Total Assets in active markets: Equities and growth funds $ 173.1 $ 20.6 $ 193.7 $ 203.4 $ 22.9 $ 226.3 Government bonds 46.7 — 46.7 49.9 — 49.9 Corporate bonds 63.6 18.0 81.6 72.7 18.3 91.0 Cash — — — 0.3 — 0.3 Total fair value of plan assets $ 283.4 $ 38.6 $ 322.0 $ 326.3 $ 41.2 $ 367.5 |
Schedule of Expected Benefit Payments | The following benefit payments are expected to be paid by the plans for the years ended December 31 as follows: In millions U.K. pension plans U.S./ other pension plans 2019 $ 17.6 $ 2.3 2020 17.9 2.3 2021 18.3 2.3 2022 18.7 2.3 2023 19.1 2.3 Thereafter 102.2 11.7 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Schedule of Ordinary Share Capital | December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 No. No. Millions Millions Authorized: Ordinary shares of £0.50 each 40,000,000 40,000,000 $ 35.7 (1) $ 35.7 (1) Deferred ordinary shares of £0.0001 each 761,845,318,444 769,423,688,000 149.9 (1) 150.9 (1) 761,885,318,444 769,463,688,000 $ 185.6 (1) $ 186.6 (1) Allotted, called up and fully paid: Ordinary shares of £0.50 each 29,000,000 27,136,799 $ 26.6 (1) $ 25.3 (1) Deferred ordinary shares of £0.0001 each 761,835,338,444 769,413,708,000 149.9 (1) 150.9 (1) 761,864,338,444 769,440,844,799 $ 176.5 (1) $ 176.2 (1) (1) The Company's ordinary and deferred share capital are shown in U.S. dollars at the exchange rate prevailing at the month-end spot rate at the time of the share capital being issued. This rate at the end of February 2007 was $1.9613 :£1 when the first 20,000,000 shares were issued; the rate at the end of October 2012 was $1.6129 :£1 when 7,000,000 shares were issued; the rate at the end of March 2013 was $1.5173 :£1 when 1,924 shares were issued; the rate at the end of January 2014 was $1.6487 :£1 when 12,076 shares were issued; the rate at the end of May 2014 was $1.6760 :£1 when 24,292 shares were issued; the rate at the end of August 2014 was $1.6580 :£1 when 58,399 shares were issued; the rate at the end of February 2015 was $1.5436 :£1 when 8,563 shares were issued; the rate at the end of March 2015 was $1.4847 :£1 when 3,866 shares were issued; the rate at the end of June 2015 was $1.5715 :£1 when 27,679 shares were issued; and the rate at the end of August 2018 when was $1.2843 :£1 when 1,863,201 shares were issued. |
Schedule of Treasury Shares | In millions At January 1, 2017 $ (7.1 ) Transfer of treasury shares into ESOP 0.8 Utilization of treasury shares 0.5 At December 31, 2017 (5.8 ) Transfer of treasury shares into ESOP 1.4 Utilization of treasury shares 0.1 At December 31, 2018 $ (4.3 ) |
Schedule of Own Share Held by ESOP | In millions At January 1, 2017 $ (0.5 ) Transfer of treasury shares into ESOP (0.8 ) Utilization of ESOP shares 0.3 At December 31, 2017 (1.0 ) Issue of new shares (1.3 ) Shares sold from ESOP 0.4 Transfer of treasury shares into ESOP (1.4 ) Utilization of ESOP shares 1.1 At December 31, 2018 $ (2.2 ) 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 £0.0001 deferred shares £0.50 ordinary shares At January 1, 2018 15,977,968,688 104,709 New shares issued — 1,863,201 Shares utilized during the year — (149,609 ) Shares transferred into ESOP during the year — 120,000 Shares sold from the ESOP during the year — (317,000 ) At December 31, 2018 15,977,968,688 1,621,301 A |
Schedule of Dividends Paid and Proposed | In millions 2018 2017 2016 Dividends declared and paid during the year: Interim dividend paid February 3, 2016 ($0.125 per ordinary share) $ — $ — $ 3.4 Interim dividend paid May 4, 2016 ($0.125 per ordinary share) — — 3.3 Interim dividend paid August 3, 2016 ($0.125 per ordinary share) — — 3.3 Interim dividend paid November 2, 2016 ($0.125 per ordinary share) — — 3.3 Interim dividend paid February 1, 2017 ($0.125 per ordinary share) — 3.3 — Interim dividend paid May 3, 2017 ($0.125 per ordinary share) — 3.3 — Interim dividend paid August 2, 2017 ($0.125 per ordinary share) — 3.3 — Interim dividend paid November 1, 2017 ($0.125 per ordinary share) — 3.4 — Interim dividend paid February 7, 2018 ($0.125 per ordinary share) 3.4 — — Interim dividend paid May 2, 2018 ($0.125 per ordinary share) 3.3 — — Interim dividend paid August 1, 2018 ($0.125 per ordinary share) 3.3 — — Interim dividend paid November 7, 2018 ($0.125 per ordinary share) 3.4 — — $ 13.4 $ 13.3 $ 13.3 In millions 2018 2017 2016 Dividends declared and paid after December 31 (not recognized as a liability at December 31): Interim dividend paid February 1, 2017: ($0.125 per ordinary share) $ — $ — $ 3.3 Interim dividend paid February 7, 2018: ($0.125 per ordinary share) — 3.4 — Interim dividend paid February 6, 2019: ($0.125 per ordinary share) 3.4 — — $ 3.4 $ 3.4 $ 3.3 |
Share Plans (Tables)
Share Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Movement in Number of Shares deld by ESOP Trustees | In millions At January 1, 2017 $ (0.5 ) Transfer of treasury shares into ESOP (0.8 ) Utilization of ESOP shares 0.3 At December 31, 2017 (1.0 ) Issue of new shares (1.3 ) Shares sold from ESOP 0.4 Transfer of treasury shares into ESOP (1.4 ) Utilization of ESOP shares 1.1 At December 31, 2018 $ (2.2 ) 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 £0.0001 deferred shares £0.50 ordinary shares At January 1, 2018 15,977,968,688 104,709 New shares issued — 1,863,201 Shares utilized during the year — (149,609 ) Shares transferred into ESOP during the year — 120,000 Shares sold from the ESOP during the year — (317,000 ) At December 31, 2018 15,977,968,688 1,621,301 A |
Schedule of Share-based Compensation Expense | Total share-based compensation expense for 2018 , 2017 and 2016 was as follows: Years ended December 31, In millions 2018 2017 2016 Other share-based compensation charges $ 4.8 $ 2.2 $ 1.4 Restructuring share-based compensation charges — 0.9 — Total share-based compensation charges $ 4.8 $ 3.1 $ 1.4 |
Share-based Compensation, Stock Options, Activity | The following tables illustrates the number of, and movements in, share options during the year, with each option relating to 1 ordinary share: Number of shares Weighted- average exercise price Weighted- average remaining contractual life (years) Aggregate intrinsic value ($M) At January 1, 2018 1,182,315 $ 6.42 2.4 $ 11.1 Granted during the year 510,536 $ 0.67 Exercised during the year (833,360 ) $ 7.43 Accrued dividend awards 18,776 $ 0.66 Lapsed during the year (29,205 ) $ 0.67 At December 31, 2018 849,062 $ 2.10 1.9 $ 13.3 Options exercisable at December 31, 2018 320,882 $ 4.31 2.4 $ 4.3 Options expected to vest as of December 31, 2018 528,180 $ 0.64 1.5 $ 9.0 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table illustrates the assumptions used in deriving the fair value of share options during the year: 2018 2017 Dividend yield (%) 4.00 4.00 Expected volatility range (%) 22.65 - 35.77 26.81 - 35.81 Risk-free interest rate (%) 0.12 - 2.57 1.00 - 2.01 Expected life of share options range (years) 0.50 - 6.00 0.50 - 7.36 Weighted average exercise price ($) $0.65 $0.65 Model used Black-Scholes & Monte-Carlo Black-Scholes |
Segmental Information Segmental
Segmental Information Segmental Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Financial information by reportable segment for the years ended December 31, is included in the following summary: Net Sales Adjusted EBITDA In millions 2018 2017 2016 2018 2017 2016 Gas Cylinders segment $ 238.1 $ 220.2 $ 225.8 $ 23.4 $ 17.0 $ 18.3 Elektron segment 249.8 221.1 189.0 56.2 42.3 33.0 Consolidated $ 487.9 $ 441.3 $ 414.8 $ 79.6 $ 59.3 $ 51.3 Depreciation and amortization Restructuring Charges In millions 2018 2017 2016 2018 2017 2016 Gas Cylinders segment $ 7.3 $ 7.2 $ 7.4 $ 10.0 $ 2.9 $ — Elektron segment 11.7 11.1 10.6 3.4 5.5 0.4 Consolidated $ 19.0 $ 18.3 $ 18.0 $ 13.4 $ 8.4 $ 0.4 (1) Adjusted EBITA is adjusted EBITDA less depreciation and loss on disposal of property, plant and equipment. 15. Segmental Information (continued) Total assets Capital expenditure In millions 2018 2017 2016 2018 2017 2016 Gas Cylinders segment $ 145.6 $ 156.9 $ 151.9 $ 2.8 $ 3.5 $ 7.2 Elektron segment 210.5 210.4 190.9 10.5 5.8 10.1 Other 34.3 48.5 57.0 0.3 0.7 — $ 390.4 $ 415.8 $ 399.8 $ 13.6 $ 10.0 $ 17.3 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | The following table presents a reconciliation of Adjusted EBITDA to net income: In millions 2018 2017 2016 Adjusted EBITDA $ 79.6 $ 59.3 $ 51.3 Other share based compensation charges (4.8 ) (2.2 ) (1.4 ) Loss on disposal of property, plant and equipment (0.3 ) — (0.2 ) Depreciation and amortization (19.0 ) (18.3 ) (18.0 ) Unwind discount on deferred consideration (0.2 ) (0.2 ) (0.4 ) Restructuring charges (13.4 ) (8.4 ) (0.4 ) Impairment charge (7.2 ) (3.7 ) — Acquisition (costs) / credit (4.3 ) 1.3 — Other charges (1) — (5.8 ) — Other general income — — 2.5 Defined benefits pension mark-to-market gain / (loss) 4.7 4.2 (2.8 ) Interest expense, net (4.6 ) (6.3 ) (6.0 ) Provision for taxes (5.5 ) (3.3 ) (6.8 ) Net income $ 25.0 $ 16.6 $ 17.8 (1) Other charges 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. |
Revenue from External Customers and Long-term Assets by Geographic Areas | The following tables present certain geographic information by geographic region for the years ended December 31,: Net Sales 2018 2017 2016 $M Percent $M Percent $M Percent United States $ 249.2 51.1 % $ 224.1 50.8 % $ 211.3 50.9 % U.K. 47.6 9.8 % 40.4 9.2 % 36.5 8.8 % Germany 42.0 8.6 % 36.8 8.3 % 32.2 7.8 % Italy 23.3 4.8 % 19.0 4.3 % 19.6 4.7 % France 17.0 3.4 % 16.0 3.6 % 15.0 3.6 % Top five countries $ 379.1 77.7 % $ 336.3 76.2 % $ 314.6 75.8 % Rest of Europe 33.2 6.8 % 31.1 7.0 % 27.4 6.6 % Asia Pacific 53.0 10.9 % 47.5 10.8 % 45.6 11.0 % Other (2) 22.6 4.6 % 26.4 6.0 % 27.2 6.6 % $ 487.9 $ 441.3 $ 414.8 Property, plant and equipment, net In millions 2018 2017 2016 United States $ 66.1 $ 75.4 $ 77.5 United Kingdom 36.0 36.6 34.3 Rest of Europe 1.1 13.1 12.8 Asia Pacific 0.3 0.2 0.2 Other (2) 3.4 3.8 3.8 $ 106.9 $ 129.1 $ 128.6 (1) Net sales are based on the geographic destination of sale. (2) Other includes Canada, South America, Latin America and Africa. |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Rental Expense under Operating Leases | Rental expense under operating leases was as follows: In millions December 31, 2018 December 31, 2017 December 31, 2016 Minimum lease payments under operating leases recognized in the consolidated income statement $ 4.8 $ 5.1 $ 4.8 |
Schedule of Future Minimum Rental Payments for Operating Leases | At December 31, 2018 , the Company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, principally related to buildings, items of machinery and equipment and motor vehicles, falling due as follows: In millions 2019 2020 2021 2022 Thereafter Total Minimum lease payments $ 4.2 $ 4.1 $ 3.3 $ 2.7 $ 13.1 $ 27.4 |
Selected Quarterly Data (unau_2
Selected Quarterly Data (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | The following tables present 2018 and 2017 quarterly financial information: 2018 In millions, except per-share data First Quarter Second Quarter Third Quarter Fourth Quarter Full Year Net sales $ 119.7 $ 128.2 $ 129.1 $ 110.9 $ 487.9 Gross profit 30.3 33.6 34.0 24.2 122.1 Operating income / (loss) 12.8 14.6 15.7 (13.1 ) 30.0 Net income / (loss) 9.9 11.4 12.2 (8.5 ) 25.0 Earnings / (loss) per ordinary share (1) Basic earnings / (loss) per ordinary share $ 0.37 $ 0.43 $ 0.46 $ (0.31 ) $ 0.94 Diluted earnings / (loss) per ordinary share 0.36 0.42 0.44 (0.31 ) 0.90 2017 In millions, except per-share data First Quarter Second Quarter Third Quarter Fourth Quarter Full Year Net sales $ 103.4 $ 106.6 $ 115.2 $ 116.1 $ 441.3 Gross profit 25.7 26.3 29.5 27.1 $ 108.6 Operating income / (loss) 10.2 6.3 8.5 (3.1 ) $ 21.9 Net income / (loss) 7.9 3.9 5.8 (1.0 ) $ 16.6 Earnings / (loss) per ordinary share (1) Basic earnings / (loss) per ordinary share $ 0.30 $ 0.15 $ 0.22 $ (0.04 ) $ 0.63 Diluted earnings / (loss) per ordinary share 0.30 0.15 0.22 (0.04 ) 0.62 (1) Amounts may not total to annual earnings because each quarter and year are calculated separately based on basic and diluted weighted-average ordinary shares outstanding during the period. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details) | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($)£ / $ | Dec. 31, 2018USD ($) | Dec. 31, 2018USD ($)€ / $ | Dec. 31, 2017USD ($)£ / $ | Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($)€ / $ | Dec. 31, 2016USD ($) | Jan. 01, 2019USD ($) | Dec. 28, 2018 | Dec. 27, 2018 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||||||||||||
Goodwill impairment | $ 1,300,000 | ||||||||||||
Percentage of equity interest acquired | 26.40% | ||||||||||||
Depreciation | 17,800,000 | $ 17,000,000 | $ 17,000,000 | ||||||||||
Asset impairment charges, related to restructuring activities | 6,600,000 | 1,300,000 | |||||||||||
Asset impairment charges, related to fair value adjustment in divestiture of business | 3,400,000 | 0 | |||||||||||
Impairment of review the use of long-lived assets | 1,500,000 | ||||||||||||
Asset impairment charges | $ 7,200,000 | 13,900,000 | 5,900,000 | $ 0 | |||||||||
Write-off in relation to the acquisition of GTM | 2,400,000 | ||||||||||||
Restricted cash | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 700,000 | 700,000 | $ 700,000 | |||||
Average foreign currency exchange rate, translation | 0.7509 | 0.8472 | 0.7682 | 0.8788 | |||||||||
Increase of average foreign currency exchange rate, translation | 0.05 | 0.05 | |||||||||||
Freehold buildings | Minimum | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 10 years | ||||||||||||
Freehold buildings | Maximum | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 33 years | ||||||||||||
Machinery and equipment | Minimum | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 3 years | ||||||||||||
Machinery and equipment | Maximum | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 25 years | ||||||||||||
Heavy production equipment (including casting, rolling, extrusion and press equipment) | Minimum | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 20 years | ||||||||||||
Heavy production equipment (including casting, rolling, extrusion and press equipment) | Maximum | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 25 years | ||||||||||||
Chemical production plant and robotics | Minimum | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 7 years | ||||||||||||
Chemical production plant and robotics | Maximum | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 10 years | ||||||||||||
Other production machinery | Minimum | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 5 years | ||||||||||||
Other production machinery | Maximum | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 10 years | ||||||||||||
Furniture, fittings, storage and equipment | Minimum | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 3 years | ||||||||||||
Furniture, fittings, storage and equipment | Maximum | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 10 years | ||||||||||||
Computer software | Minimum | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 4 years | ||||||||||||
Computer software | Maximum | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Property, plant and equipment, useful life | 7 years | ||||||||||||
Customer relationships | Minimum | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Intangible asset, useful life | 10 years | ||||||||||||
Customer relationships | Maximum | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Intangible asset, useful life | 15 years | ||||||||||||
Technology and trading related | Minimum | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Intangible asset, useful life | 5 years | ||||||||||||
Technology and trading related | Maximum | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Intangible asset, useful life | 25 years | ||||||||||||
Luxfer Uttam India Private Limited | Variable Interest Entity, Not Primary Beneficiary | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
VIEs ownership percentage | 51.00% | 51.00% | 51.00% | 51.00% | 51.00% | ||||||||
Nikkei-MEL Co. Limited | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
VIEs ownership percentage | 50.00% | 50.00% | 50.00% | 50.00% | 50.00% | ||||||||
Sub161 Pty Limited | Variable Interest Entity, Not Primary Beneficiary | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
VIEs ownership percentage | 26.40% | 26.40% | 26.40% | 26.40% | 26.40% | ||||||||
Luxfer Holdings NA, LLC | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Percentage of equity interest acquired | 51.00% | ||||||||||||
Luxfer Holdings NA, LLC | Variable Interest Entity, Not Primary Beneficiary | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
VIEs ownership percentage | 49.00% | ||||||||||||
Escrow to disburse environmental liabilities | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Restricted cash | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | $ 400,000 | 400,000 | $ 400,000 | |||||
Escrow related to deferred consideration for acquisition | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Restricted cash | $ 300,000 | $ 300,000 | $ 300,000 | ||||||||||
GBP | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Effect of exchange rate on revenue during the year | 2,500,000 | ||||||||||||
Effect of exchange rate on operating income during the year | 200,000 | ||||||||||||
Effect of exchange on revenue per 0.05 increase in foreign exchange rate | 6,400,000 | ||||||||||||
Effect of exchange on operating income per 0.05 increase in foreign exchange rate | 500,000 | ||||||||||||
Euro | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Effect of exchange rate on revenue during the year | 800,000 | ||||||||||||
Effect of exchange rate on operating income during the year | 100,000 | ||||||||||||
Effect of exchange on revenue per 0.05 increase in foreign exchange rate | 1,100,000 | ||||||||||||
Effect of exchange on operating income per 0.05 increase in foreign exchange rate | $ 0 | ||||||||||||
Subsequent Event | Accounting Standards Update 2016-02 | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Lease assets | $ 15,600,000 | ||||||||||||
Lease liabilities | $ 15,600,000 | ||||||||||||
Measurement Input, Long-term Revenue Growth Rate [Member] | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Goodwill impairment test, measurement input | 0.022 | 0.022 | 0.022 | 0.022 | 0.022 | ||||||||
Measurement Input, Discount Rate [Member] | Minimum | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Goodwill impairment test, measurement input | 0.064 | 0.064 | 0.064 | 0.064 | 0.064 | ||||||||
Measurement Input, Discount Rate [Member] | Maximum | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Goodwill impairment test, measurement input | 0.091 | 0.091 | 0.091 | 0.091 | 0.091 | ||||||||
Held-for-sale | Magnesium Elektron CZ s.r.o. Subsidiary | |||||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||||
Adjustment in relation to the sale of business | $ (3,400,000) |
Acquisitions and disposals - Ad
Acquisitions and disposals - Additional Information (Details) - USD ($) | Dec. 31, 2018 | Dec. 28, 2018 | Dec. 05, 2017 | Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 27, 2018 | Dec. 31, 2015 |
Business Acquisition [Line Items] | |||||||||
Percentage of equity interest acquired | 26.40% | ||||||||
Goodwill | $ 67,600,000 | $ 67,600,000 | $ 67,600,000 | $ 71,200,000 | $ 67,900,000 | ||||
Equity investments fair value | $ 1,600,000 | ||||||||
Asset impairment charges | 7,200,000 | 13,900,000 | 5,900,000 | 0 | |||||
Consideration paid | 0 | 4,300,000 | |||||||
Acquisition-related costs | 4,300,000 | ||||||||
Business combination, contingent consideration deferred | 900,000 | 900,000 | 900,000 | 700,000 | |||||
Remeasurement of deferred consideration (recognized in acquisition-related costs) | 900,000 | 1,000,000 | |||||||
Business combination, contingent consideration, liability, deferred, net | 200,000 | 200,000 | 400,000 | ||||||
Business combination, contingent consideration, liability, current | 500,000 | ||||||||
Business combination, undiscounted future payment, current | 900,000 | 900,000 | 900,000 | $ 700,000 | |||||
Maximum undiscounted amount payable | 10,000,000 | $ 10,000,000 | $ 10,000,000 | ||||||
Luxfer Holdings NA, LLC | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration of disposal | $ 2,200,000 | ||||||||
Amount of debt instrument forgiveness | 2,100,000 | ||||||||
Fair value of net assets of acquiree | 4,000,000 | ||||||||
Fair value of net assets acquired | 2,100,000 | ||||||||
Goodwill | 0 | ||||||||
Cash acquired | 2,700,000 | ||||||||
Inventory acquired | 1,100,000 | ||||||||
Accounts and other receivables acquired | 800,000 | ||||||||
Property, plant, and equipment acquired | 200,000 | ||||||||
Accounts payable assumed from acquisition | 800,000 | ||||||||
Intangible assets acquired | 0 | ||||||||
Asset impairment charges | 2,400,000 | ||||||||
Revenue of acquiree since acquisition date | $ 0 | ||||||||
ESM Group Inc. | |||||||||
Business Acquisition [Line Items] | |||||||||
Fair value of net assets acquired | $ 5,800,000 | ||||||||
Inventory acquired | 700,000 | ||||||||
Property, plant, and equipment acquired | 3,200,000 | ||||||||
Consideration paid | 4,300,000 | ||||||||
Consideration deferred | 300,000 | ||||||||
Business combination, escrow deposit | 400,000 | ||||||||
Bargain purchase, gain recognized | 1,200,000 | ||||||||
Liabilities assumed form acquisition | 100,000 | ||||||||
Acquisition-related costs | 500,000 | ||||||||
Provisions for disbursement of environmental liabilities | 400,000 | ||||||||
Business combination, consideration deferred | $ 300,000 | ||||||||
ESM Group Inc. | Land and Building | |||||||||
Business Acquisition [Line Items] | |||||||||
Property, plant, and equipment acquired | $ 2,000,000 | ||||||||
Luxfer Holdings NA, LLC | Gas Transport Leasing LLC | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration of disposal | $ 2,200,000 | ||||||||
Luxfer Holdings NA, LLC | |||||||||
Business Acquisition [Line Items] | |||||||||
Percentage of equity interest acquired | 51.00% | ||||||||
Variable Interest Entity, Not Primary Beneficiary | Luxfer Holdings NA, LLC | |||||||||
Business Acquisition [Line Items] | |||||||||
VIEs ownership percentage | 49.00% |
Acquisitions and disposals - Ne
Acquisitions and disposals - Net Cash Flows on Purchase of Business (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Payments to Acquire Businesses, Net of Cash Acquired [Abstract] | |||
Consideration paid | $ 0 | $ (4.3) | |
Proceeds from sale of businesses and other | 0 | 0.1 | $ 0 |
Acquisition and disposal costs paid | 0 | (0.5) | |
Cash acquired | 2.7 | 0 | |
Net cash flows on purchase of business | 2.7 | (4.7) | (0.3) |
Deferred consideration paid | $ (0.8) | $ (1.4) | $ 0 |
Earnings per share Earnings p_2
Earnings per share Earnings per share (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018USD ($)$ / shares | Sep. 30, 2018USD ($)$ / shares | Jun. 30, 2018USD ($)$ / shares | Mar. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | Sep. 30, 2017USD ($)$ / shares | Jun. 30, 2017USD ($)$ / shares | Mar. 31, 2017USD ($)$ / shares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2018£ / shares | Dec. 31, 2017£ / shares | |
Basic earnings: | |||||||||||||
Net income | $ | $ (8.5) | $ 12.2 | $ 11.4 | $ 9.9 | $ (1) | $ 5.8 | $ 3.9 | $ 7.9 | $ 25 | $ 16.6 | $ 17.8 | ||
Weighted average number of £0.50 ordinary shares: | |||||||||||||
For basic earnings per share (shares) | 26,708,469 | 26,460,947 | 26,443,662 | ||||||||||
Dilutive effect of potential common stock (shares) | 983,793 | 263,034 | 210,976 | ||||||||||
For diluted earnings per share (shares) | 27,692,262 | 26,723,981 | 26,654,638 | ||||||||||
Earnings per share using weighted average number of ordinary shares outstanding: | |||||||||||||
Basic earnings per ordinary share (usd per share) | $ / shares | $ (0.31) | $ 0.46 | $ 0.43 | $ 0.37 | $ (0.04) | $ 0.22 | $ 0.15 | $ 0.30 | $ 0.94 | $ 0.63 | $ 0.67 | ||
Diluted earnings per ordinary share (usd per share) | $ / shares | $ (0.31) | $ 0.44 | $ 0.42 | $ 0.36 | $ (0.04) | $ 0.22 | $ 0.15 | $ 0.30 | $ 0.90 | $ 0.62 | $ 0.67 | ||
Ordinary shares | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Common stock, par value (in GBP per share) | £ / shares | £ 0.50 | £ 0.50 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 110.9 | $ 129.1 | $ 128.2 | $ 119.7 | $ 116.1 | $ 115.2 | $ 106.6 | $ 103.4 | $ 487.9 | $ 441.3 | $ 414.8 |
General industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 174.6 | 145.2 | 131.4 | ||||||||
Transportation | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 151.8 | 130.3 | 135.8 | ||||||||
Defense and emergency | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 128.7 | 130.6 | 119.3 | ||||||||
Healthcare | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 32.8 | 35.2 | 28.3 | ||||||||
Gas Cylinders segment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 238.1 | 220.2 | 225.8 | ||||||||
Gas Cylinders segment | General industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 50.7 | 49.6 | 45.7 | ||||||||
Gas Cylinders segment | Transportation | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 79 | 63.8 | 72.9 | ||||||||
Gas Cylinders segment | Defense and emergency | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 79.3 | 76.5 | 83.1 | ||||||||
Gas Cylinders segment | Healthcare | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 29.1 | 30.3 | 24.1 | ||||||||
Elektron segment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 249.8 | 221.1 | 189 | ||||||||
Elektron segment | General industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 123.9 | 95.6 | 85.7 | ||||||||
Elektron segment | Transportation | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 72.8 | 66.5 | 62.9 | ||||||||
Elektron segment | Defense and emergency | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 49.4 | 54.1 | 36.2 | ||||||||
Elektron segment | Healthcare | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 3.7 | $ 4.9 | $ 4.2 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue, performance obligation satisfied over time, percentage (less than) | 3.00% | 3.00% | |
Contract assets | $ 2.1 | $ 4.6 | $ 3.6 |
Contract liabilities | $ 1.1 | $ 0.9 | $ 0.2 |
Revenue - Contract Receivables,
Revenue - Contract Receivables, Contract Assets, and Contract Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Revenue from Contract with Customer [Abstract] | |||
Contract receivables | $ 1.5 | $ 1.6 | |
Contract assets | 2.1 | 4.6 | $ 3.6 |
Contract liabilities | $ (1.1) | $ (0.9) | $ (0.2) |
Revenue - Significant Changes i
Revenue - Significant Changes in Contract Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Contract With Customer, Asset (Liability) [Roll Forward] | ||
Beginning balance | $ (0.9) | $ (0.2) |
Payments received / amounts billed | 3.8 | (2.2) |
Costs incurred / revenue recognized | 3.6 | 1.5 |
Ending balance | $ (1.1) | $ (0.9) |
Restructuring - Restructuring C
Restructuring - Restructuring Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | $ (13.4) | $ (8.4) | $ (0.4) |
Gas Cylinders segment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | (10) | (2.9) | 0 |
Elektron segment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | (3.4) | (5.5) | (0.4) |
Severance and related costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | (6.7) | (4.6) | (0.4) |
Asset impairment | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | (6.8) | (2.3) | 0 |
Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Total restructuring charges | $ 0.1 | $ (1.5) | $ 0 |
Restructuring - Restructuring R
Restructuring - Restructuring Reserve (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Beginning balance | $ 2.1 | $ 0.8 |
Costs incurred | 6.6 | 6.1 |
Cash payments and other | (3.5) | (4.8) |
Ending balance | $ 5.2 | $ 2.1 |
Goodwill and other identifiab_3
Goodwill and other identifiable intangible assets - Schedule of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 71.2 | $ 67.9 |
Exchange difference | (2.3) | 3.3 |
Impairment | (1.3) | |
Ending balance | 67.6 | 71.2 |
Gas Cylinders | ||
Goodwill [Roll Forward] | ||
Beginning balance | 29 | 27 |
Exchange difference | (1.4) | 2 |
Impairment | (1.3) | |
Ending balance | 26.3 | 29 |
Elektron | ||
Goodwill [Roll Forward] | ||
Beginning balance | 42.2 | 40.9 |
Exchange difference | (0.9) | 1.3 |
Impairment | 0 | |
Ending balance | $ 41.3 | $ 42.2 |
Goodwill and other identifiab_4
Goodwill and other identifiable intangible assets - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets | |||
Accumulated goodwill impairment losses | $ 9.6 | $ 8.3 | |
Goodwill impairment | 1.3 | ||
Identifiable intangible asset amortization expense | 1.2 | 1.3 | $ 1.1 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | |||
2019 | 1.2 | ||
2020 | 1.1 | ||
2021 | 1.1 | ||
2022 | 1.1 | ||
2023 | 1.1 | ||
Gas Cylinders | |||
Finite-Lived Intangible Assets | |||
Goodwill impairment | $ 1.3 | ||
Gas Cylinders | Technology and trading related | |||
Finite-Lived Intangible Assets | |||
Impairment charges | $ 0.5 |
Goodwill and other identifiab_5
Goodwill and other identifiable intangible assets - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets | ||
Gross | $ 21.3 | $ 22 |
Accumulated amortization | (6.7) | (5.9) |
Net | 14.6 | 16.1 |
Customer relationships | ||
Finite-Lived Intangible Assets | ||
Gross | 13.4 | 13.4 |
Accumulated amortization | (3.8) | (2.9) |
Net | 9.6 | 10.5 |
Technology and trading related | ||
Finite-Lived Intangible Assets | ||
Gross | 7.9 | 8.6 |
Accumulated amortization | (2.9) | (3) |
Net | $ 5 | $ 5.6 |
Supplementary balance sheet i_3
Supplementary balance sheet information - Schedule of Condensed Balance Sheet (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts and other receivables | |||
Trade receivables | $ 49.8 | $ 53.8 | |
Related parties | 0.9 | 1.8 | |
Prepayments and accrued income | 7.7 | 10.5 | |
Derivative financial instruments | 0.1 | 2.1 | |
Other receivables | 4.2 | 4.2 | |
Total accounts and other receivables | 62.7 | 72.4 | |
Inventories | |||
Raw materials and supplies | 30.5 | 31 | |
Work-in-process | 33.1 | 28.1 | |
Finished goods | 30 | 23.1 | |
Total inventories | 93.6 | 82.2 | |
Other current assets | |||
Held-for-sale assets | 10.7 | 0 | |
Income tax receivable | 0 | 1.2 | |
Total other current assets | 10.7 | 1.2 | |
Property, Plant and Equipment [Abstract] | |||
Total property plant and equipment | 369.4 | 380.2 | |
Accumulated depreciation and impairment | (262.5) | (251.1) | |
Total property, plant and equipment, net | 106.9 | 129.1 | $ 128.6 |
Other non-current assets | |||
Derivative financial instruments | 0 | 0.3 | |
Total other non-current assets | 0 | 0.3 | |
Current maturities of long-term debt and short-term borrowings | |||
Bank and other loans | 0 | 15 | |
Overdrafts | 3.5 | 4.2 | |
Total current maturities of long-term debt and short-term borrowings | 3.5 | 19.2 | |
Other current liabilities | |||
Contingent liabilities | 5.3 | 2.8 | |
Held-for-sale liabilities | 2.5 | 0 | |
Derivative financial instruments | 0 | 1.5 | |
Other current liabilities | 4.1 | 2.1 | |
Total other current liabilities | 11.9 | 6.4 | |
Other non-current liabilities | |||
Contingent liabilities | 0.8 | 1.1 | |
Derivative financial instruments | 0 | 0.4 | |
Other non-current liabilities | 0.5 | 1.7 | |
Total other non-current liabilities | 1.3 | 3.2 | |
Land, buildings and leasehold improvements | |||
Property, Plant and Equipment [Abstract] | |||
Total property plant and equipment | 73.3 | 80.8 | |
Machinery and equipment | |||
Property, Plant and Equipment [Abstract] | |||
Total property plant and equipment | 286 | 292.7 | |
Construction in progress | |||
Property, Plant and Equipment [Abstract] | |||
Total property plant and equipment | $ 10.1 | $ 6.7 |
Supplementary balance sheet i_4
Supplementary balance sheet information - Additional Information (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)facility | Dec. 31, 2017USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Tangible asset impairment charges | $ 6.6 | $ 2.8 |
Held-for-sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Amount of property disposed | 5.5 | |
Building | Held-for-sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Amount of property disposed | $ 4.7 | |
Number of properties to be disposed | facility | 2 | |
Impairment of assets held-for-sale | $ 1.1 | |
Magnesium Elektron CZ s.r.o. Subsidiary | Held-for-sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Impairment of buildings to be disposed of | 3.4 | |
Elektron segment | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Tangible asset impairment charges | 1.5 | 1.3 |
Gas Cylinders segment | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Tangible asset impairment charges | $ 5.1 | $ 1.5 |
Supplementary balance sheet i_5
Supplementary balance sheet information - Schedule of Current Held-for-Sale Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Reclassified to held-for-sale assets | ||
Held-for-sale assets | $ 10.7 | $ 0 |
Reclassified to held-for-sale liabilities | ||
Held-for-sale liabilities | 2.5 | $ 0 |
Held-for-sale | ||
Reclassified to held-for-sale assets | ||
Property, plant and equipment | 5.5 | |
Inventory | 2.9 | |
Accounts and other receivables | 2.3 | |
Held-for-sale assets | 10.7 | |
Reclassified to held-for-sale liabilities | ||
Accounts payables | 2.5 | |
Held-for-sale liabilities | $ 2.5 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total shareholders' equity | $ 184.3 | $ 174.5 | $ 150.4 | $ 183.8 |
Cumulative translation adjustments | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total shareholders' equity | (55.6) | (49.2) | ||
Pension plans actuarial loss, net of tax | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total shareholders' equity | (90.2) | (91.3) | ||
Change in market value of derivative financial instruments, net of tax | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total shareholders' equity | (0.8) | (0.2) | ||
Accumulated other comprehensive loss | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total shareholders' equity | $ (146.6) | $ (140.7) | $ (159) | $ (127.2) |
Debt - Schedule of Debt Outstan
Debt - Schedule of Debt Outstanding (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 31, 2017 |
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 78.5 | ||
Unamortized debt issuance costs | (1.4) | $ (1.7) | |
Total debt | 77.1 | 113.8 | |
Less current portion | (3.5) | (19.2) | |
Long-term debt | 73.6 | 94.6 | |
Other - Bank overdraft | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 3.5 | 4.2 | |
Loan Notes | Loan Notes due 2018 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 0 | 15 | |
Debt stated interest rate | 6.19% | ||
Loan Notes | Loan Notes due 2021 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 25 | 25 | |
Debt stated interest rate | 3.67% | ||
Loan Notes | Loan Notes due 2023 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 25 | 25 | |
Debt stated interest rate | 4.88% | ||
Loan Notes | Loan Notes due 2026 | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 25 | 25 | |
Debt stated interest rate | 4.94% | ||
Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 0 | $ 21.3 | |
Unamortized debt issuance costs | $ (1) |
Debt - Additional Information (
Debt - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jul. 31, 2017USD ($) | Jun. 29, 2016USD ($) | |
Debt Instrument [Line Items] | ||||
Debt issuance costs | $ 1,400,000 | $ 1,700,000 | ||
Debt covenant, interest coverage ratio | 4 | |||
Debt covenant, leverage ratio (no more than) | 3 | |||
Senior Facilities Agreement | ||||
Debt Instrument [Line Items] | ||||
Debt, use of proceeds, amount permitted to dispose of assets without restriction (up to) | $ 25,000,000 | |||
Loan Notes | Loan Notes due 2018 | ||||
Debt Instrument [Line Items] | ||||
Debt maximum borrowing capacity | $ 50,000,000 | |||
Debt stated interest rate | 6.19% | |||
Loan Notes | Loan Notes due 2021 | ||||
Debt Instrument [Line Items] | ||||
Debt stated interest rate | 3.67% | |||
Loan Notes | Loan Notes due 2023 | ||||
Debt Instrument [Line Items] | ||||
Debt stated interest rate | 4.88% | |||
Loan Notes | Loan Notes due 2026 | ||||
Debt Instrument [Line Items] | ||||
Debt stated interest rate | 4.94% | |||
Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Debt maximum borrowing capacity | $ 150,000,000 | |||
Debt issuance costs | 1,000,000 | |||
Debt, weighted average interest rate | 3.58% | 3.05% | ||
Uncommitted Facilities | ||||
Debt Instrument [Line Items] | ||||
Accordion facility amount | $ 50,000,000 |
Debt - Schedule of Maturities o
Debt - Schedule of Maturities of Company's Debt (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
2019 | $ 3.5 | |
2020 | 0 | |
2021 | 25 | |
2022 | 0 | |
2023 | 25 | |
Thereafter | 25 | |
Total | 78.5 | |
Other | ||
Debt Instrument [Line Items] | ||
2019 | 3.5 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 0 | |
Total | 3.5 | $ 4.2 |
Loan Notes | Loan Notes due 2021 | ||
Debt Instrument [Line Items] | ||
2019 | 0 | |
2020 | 0 | |
2021 | 25 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 0 | |
Total | 25 | 25 |
Loan Notes | Loan Notes due 2023 | ||
Debt Instrument [Line Items] | ||
2019 | 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 25 | |
Thereafter | 0 | |
Total | 25 | 25 |
Loan Notes | Loan Notes due 2026 | ||
Debt Instrument [Line Items] | ||
2019 | 0 | |
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
Thereafter | 25 | |
Total | $ 25 | $ 25 |
Derivatives and Financial Ins_3
Derivatives and Financial Instruments - Additional Information (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)T | Dec. 31, 2017USD ($)T | Dec. 31, 2016USD ($) | |
Derivative [Line Items] | |||
Derivative financial liabilities | $ 0 | ||
Derivative loss deferred in equity | 400,000 | $ 700,000 | $ 3,100,000 |
Derivative (loss) gain transferred to consolidated income statement | $ (100,000) | $ 600,000 | $ (900,000) |
Primary aluminum purchased during period, mass | T | 11,500 | 12,500 | |
Overdrafts | $ 3,500,000 | $ 4,200,000 | |
Long-term debt outstanding | 77,100,000 | 113,800,000 | |
Debt issuance costs | $ 1,400,000 | $ 1,700,000 | |
LME derivative contract | |||
Derivative [Line Items] | |||
Percentage of primary aluminum requirement hedged by LME derivatives | 0.00% | 32.00% | |
Derivative, nonmonetary notional amount, mass | T | 3,300 | 3,000 | |
Increase in cost per $100 increase in LME price of aluminum | $ 1,100,000 | ||
Accounts and Other Receivables | |||
Derivative [Line Items] | |||
Derivative financial assets | 100,000 | $ 2,100,000 | |
Other Non-current Assets | |||
Derivative [Line Items] | |||
Derivative financial assets | 0 | 300,000 | |
Other Current Liabilities | |||
Derivative [Line Items] | |||
Derivative financial liabilities | 1,500,000 | ||
Other Noncurrent Liabilities | |||
Derivative [Line Items] | |||
Derivative financial liabilities | 400,000 | ||
Bank and other loans | |||
Derivative [Line Items] | |||
Long-term debt outstanding | 75,000,000 | 111,300,000 | |
Debt issuance costs | 1,400,000 | 1,700,000 | |
Variable interest rate debt | $ 0 | $ 21,300,000 |
Derivatives and Financial Ins_4
Derivatives and Financial Instruments - Schedule of Derivative Instruments (Details) - Designated as Hedging Instrument £ in Millions | Dec. 31, 2018GBP (£)Kč / £$ / £€ / £$ / £ | Dec. 31, 2017GBP (£)€ / £$ / £$ / £ |
U.S. dollars | Sales hedges | ||
Derivative [Line Items] | ||
Contract totals/£m | £ | £ 4.8 | £ 17.1 |
U.S. dollars | Sales hedges | Minimum | ||
Derivative [Line Items] | ||
Exchange rates | $ / £ | 1.2519 | 1.2433 |
U.S. dollars | Sales hedges | Maximum | ||
Derivative [Line Items] | ||
Exchange rates | $ / £ | 1.3419 | 1.3444 |
U.S. dollars | Purchase hedges | ||
Derivative [Line Items] | ||
Contract totals/£m | £ | £ 7.5 | £ 12.5 |
U.S. dollars | Purchase hedges | Minimum | ||
Derivative [Line Items] | ||
Exchange rates | $ / £ | 1.2609 | 1.2414 |
U.S. dollars | Purchase hedges | Maximum | ||
Derivative [Line Items] | ||
Exchange rates | $ / £ | 1.3380 | 1.3389 |
Euros | Sales hedges | ||
Derivative [Line Items] | ||
Contract totals/£m | £ | £ 7.2 | £ 27.5 |
Euros | Sales hedges | Minimum | ||
Derivative [Line Items] | ||
Exchange rates | € / £ | 1.0949 | 1.0949 |
Euros | Sales hedges | Maximum | ||
Derivative [Line Items] | ||
Exchange rates | € / £ | 1.1702 | 1.1803 |
Euros | Purchase hedges | ||
Derivative [Line Items] | ||
Contract totals/£m | £ | £ 1.7 | £ 0.1 |
Exchange rates | € / £ | 1.1084 | |
Euros | Purchase hedges | Minimum | ||
Derivative [Line Items] | ||
Exchange rates | € / £ | 1.1074 | |
Euros | Purchase hedges | Maximum | ||
Derivative [Line Items] | ||
Exchange rates | € / £ | 1.1221 | |
Canadian dollars | Purchase hedges | ||
Derivative [Line Items] | ||
Contract totals/£m | £ | £ 2.9 | |
Canadian dollars | Purchase hedges | Minimum | ||
Derivative [Line Items] | ||
Exchange rates | $ / £ | 1.7039 | |
Canadian dollars | Purchase hedges | Maximum | ||
Derivative [Line Items] | ||
Exchange rates | $ / £ | 1.7416 | |
Australian dollars | Sales hedges | ||
Derivative [Line Items] | ||
Contract totals/£m | £ | £ 2.8 | |
Exchange rates | $ / £ | 1.7667 | |
Australian dollars | Purchase hedges | ||
Derivative [Line Items] | ||
Contract totals/£m | £ | £ 1.7 | |
Exchange rates | $ / £ | 1.7161 | |
Czech koruna | Purchase hedges | ||
Derivative [Line Items] | ||
Contract totals/£m | £ | £ 0.1 | |
Exchange rates | Kč / £ | 28.4490 |
Derivatives and Financial Ins_5
Derivatives and Financial Instruments - Fair Values of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred contingent consideration | $ (0.9) | $ (0.7) |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred contingent consideration | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred contingent consideration | 0 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred contingent consideration | (0.9) | |
Foreign currency contract | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract assets | 0.1 | |
Foreign currency contract | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract assets | 0 | |
Foreign currency contract | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract assets | 0.1 | |
Foreign currency contract | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract assets | 0 | |
Loan Notes | Loan Notes due 2021 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest bearing loans and borrowings | (24.8) | |
Loan Notes | Loan Notes due 2023 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest bearing loans and borrowings | (25.9) | |
Loan Notes | Loan Notes due 2026 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest bearing loans and borrowings | (26.4) | |
Loan Notes | Level 1 | Loan Notes due 2021 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest bearing loans and borrowings | 0 | |
Loan Notes | Level 1 | Loan Notes due 2023 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest bearing loans and borrowings | 0 | |
Loan Notes | Level 1 | Loan Notes due 2026 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest bearing loans and borrowings | 0 | |
Loan Notes | Level 2 | Loan Notes due 2021 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest bearing loans and borrowings | (24.8) | |
Loan Notes | Level 2 | Loan Notes due 2023 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest bearing loans and borrowings | (25.9) | |
Loan Notes | Level 2 | Loan Notes due 2026 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest bearing loans and borrowings | (26.4) | |
Loan Notes | Level 3 | Loan Notes due 2021 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest bearing loans and borrowings | 0 | |
Loan Notes | Level 3 | Loan Notes due 2023 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest bearing loans and borrowings | 0 | |
Loan Notes | Level 3 | Loan Notes due 2026 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest bearing loans and borrowings | $ 0 |
Derivatives and Financial Ins_6
Derivatives and Financial Instruments - Schedule of Changes in Level 3 Instruments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at January 1 | $ 1 | ||
Payments made during year | (0.8) | ||
Unwind of discount on deferred consideration | (0.2) | $ (0.2) | $ (0.4) |
Remeasurement of deferred consideration (recognized in acquisition-related costs) | 0.9 | 1 | |
Balance at December 31 | 0.9 | $ 1 | |
Total losses for the period included in profit and loss for assets held at the end at December 31 | 0.7 | ||
Change in unrealized (gains) or losses for the period included in profit and loss for assets held at the end at December 31 | $ 0.7 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
U.K. | $ 26.2 | $ (3) | $ 13.1 |
International | 4.3 | 22.9 | 11.5 |
Income before income taxes | $ 30.5 | $ 19.9 | $ 24.6 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Currently payable | |||
U.K. | $ 0.2 | $ (0.2) | $ 0.3 |
International | 5.1 | 6.2 | 3.6 |
Total current taxes | 5.3 | 6 | 3.9 |
Deferred | |||
U.K. | 3.4 | (0.1) | 3.4 |
International | (3.2) | (2.6) | (0.5) |
Total deferred taxes | 0.2 | (2.7) | 2.9 |
Total provision for income taxes | $ 5.5 | $ 3.3 | $ 6.8 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income before Income Taxes and Total Provision for Income Taxes (Details) - USD ($) $ in Millions | Apr. 01, 2020 | Mar. 31, 2015 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Mar. 31, 2017 |
Income Tax Disclosure [Abstract] | |||||||
Income before income taxes | $ 30.5 | $ 19.9 | $ 24.6 | ||||
Provision for income taxes at the U.K. statutory tax rate (2018: 19%, 2017:19.25%, 2016: 20.0%) | 5.8 | 3.8 | 4.9 | ||||
Effect of: | |||||||
Non-deductible expenses | 0.1 | 0.8 | 0.4 | ||||
Movement in valuation allowances | 0 | (0.9) | 0.7 | ||||
Differences in income tax rates in countries where the Company operates | 0.3 | 2.2 | (0.5) | ||||
Effect of U.S. tax reform | 0 | (4) | 0 | ||||
Effect of changes in tax rates (excluding U.S. tax reform) | 0.2 | 1.1 | 0 | ||||
Movement in uncertain tax positions | 0.1 | 0.9 | 0.9 | ||||
Other | (1) | (0.6) | 0.4 | ||||
Total provision for income taxes | $ 5.5 | $ 3.3 | $ 6.8 | ||||
Income Tax Contingency [Line Items] | |||||||
U.K. statutory tax rate | 21.00% | 19.25% | 20.00% | ||||
Scenario, Forecast | |||||||
Income Tax Contingency [Line Items] | |||||||
U.K. statutory tax rate | 17.00% |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 2.8 | $ 1.9 | $ 1 |
Gross increases based on tax positions related to the current year | 1.4 | 1 | 0.9 |
Reductions due to expiry of statute of limitations | (1) | (0.1) | 0 |
Ending balance | 3.2 | 2.8 | 1.9 |
Non-current | $ 3.2 | $ 2.8 | $ 1.9 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Loss Carryforwards [Line Items] | |||
Reductions due to expiry of statute of limitations, gross | $ 900,000 | ||
Reductions due to expiry of statute of limitations may be recognized by the end of 2019 | 100,000 | ||
Unrecognized tax benefits that would impact effective tax rate | 700,000 | $ 600,000 | $ 400,000 |
Unrecognized tax benefits, income tax penalties and interest expense | 0 | 100,000 | 0 |
Undistributed earnings of foreign subsidiaries | 62,400,000 | 59,000,000 | 69,900,000 |
Deferred tax liability not recognized, amount of unrecognized deferred tax liability, undistributed earnings of foreign subsidiaries | 600,000 | 300,000 | 200,000 |
Tax losses and tax credit carryforward, amount | 81,000,000 | 92,700,000 | 82,400,000 |
Tax losses and tax credit carryforward, valuation allowance | 15,000,000 | 15,000,000 | 15,900,000 |
U.K. | |||
Operating Loss Carryforwards [Line Items] | |||
Tax losses and tax credit carryforward, amount | 38,800,000 | 43,400,000 | 35,300,000 |
Tax losses and tax credit carryforward, valuation allowance | 4,100,000 | 4,600,000 | 4,100,000 |
Non-U.K. | |||
Operating Loss Carryforwards [Line Items] | |||
Tax losses and tax credit carryforward, amount | 42,200,000 | 49,300,000 | 47,100,000 |
Tax losses and tax credit carryforward, valuation allowance | 10,900,000 | $ 10,400,000 | $ 11,800,000 |
Tax Losses And Tax Credits Carryforward, Expire Between 2023 and 2034 | |||
Operating Loss Carryforwards [Line Items] | |||
Tax losses and tax credit carryforward, amount | 23,800,000 | ||
Tax Losses And Tax Credits Carryforward, Indefinite | |||
Operating Loss Carryforwards [Line Items] | |||
Tax losses and tax credit carryforward, amount | $ 57,200,000 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Tax Assets, Net [Abstract] | ||
Other non-current assets | $ 18.6 | $ 20.8 |
Other non-current liabilities | (3.5) | (4.2) |
Net deferred tax assets | 15.1 | 16.6 |
Deferred tax assets | ||
Pension benefits | 7.7 | 10.9 |
Tax loss and credit carry forwards | 20.7 | 24.8 |
Other | 5.2 | 1.6 |
Total deferred tax assets | 33.6 | 37.3 |
Valuation allowances | (15) | (15) |
Valuation allowances | 18.6 | 22.3 |
Deferred tax liabilities | ||
Property, plant and equipment | 3.5 | 5.7 |
Total deferred tax liabilities | $ 3.5 | $ 5.7 |
Pension Plans - Reconciliations
Pension Plans - Reconciliations of Plan Benefit Obligation, Fair Value of Plan Assets and Funded Status of Pension Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at January 1 | $ 422.8 | $ 383.4 | |
Service cost | 0.1 | 0.1 | $ 0.4 |
Interest cost | 10.4 | 10.8 | 13.4 |
Actuarial (gain) / loss | (33.6) | 14.4 | |
Exchange difference | (19.8) | 32.3 | |
Benefits paid | (20.1) | (18.2) | |
Prior service cost | 2.2 | 0 | |
Benefit obligation at December 31 | 362 | 422.8 | 383.4 |
Change in plan assets | |||
Fair value of plan assets at January 1 | 367.5 | 316.9 | |
Actual return on assets | (15.5) | 32.5 | |
Exchange difference | (17.8) | 27.4 | |
Contributions from employer | 7.9 | 8.9 | |
Benefits paid | (20.1) | (18.2) | |
Fair value of plan assets at December 31 | 322 | 367.5 | 316.9 |
Funded status | |||
Benefit obligations in excess of the fair value of plan assets | (40) | (55.3) | |
U.K. | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at January 1 | 369.7 | 334.8 | |
Service cost | 0 | 0 | 0.3 |
Interest cost | 8.6 | 8.9 | 10.9 |
Actuarial (gain) / loss | (27.7) | 10.1 | |
Exchange difference | (19.7) | 32 | |
Benefits paid | (17.9) | (16.1) | |
Prior service cost | 2.2 | 0 | |
Benefit obligation at December 31 | 315.2 | 369.7 | 334.8 |
Change in plan assets | |||
Fair value of plan assets at January 1 | 326.3 | 280.3 | |
Actual return on assets | (13) | 27.7 | |
Exchange difference | (17.8) | 27.4 | |
Contributions from employer | 5.8 | 7 | |
Benefits paid | (17.9) | (16.1) | |
Fair value of plan assets at December 31 | 283.4 | 326.3 | 280.3 |
Funded status | |||
Benefit obligations in excess of the fair value of plan assets | (31.8) | (43.4) | |
U.S./ other | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at January 1 | 53.1 | 48.6 | |
Service cost | 0.1 | 0.1 | 0.1 |
Interest cost | 1.8 | 1.9 | 2.5 |
Actuarial (gain) / loss | (5.9) | 4.3 | |
Exchange difference | (0.1) | 0.3 | |
Benefits paid | (2.2) | (2.1) | |
Prior service cost | 0 | 0 | |
Benefit obligation at December 31 | 46.8 | 53.1 | 48.6 |
Change in plan assets | |||
Fair value of plan assets at January 1 | 41.2 | 36.6 | |
Actual return on assets | (2.5) | 4.8 | |
Exchange difference | 0 | 0 | |
Contributions from employer | 2.1 | 1.9 | |
Benefits paid | (2.2) | (2.1) | |
Fair value of plan assets at December 31 | 38.6 | 41.2 | $ 36.6 |
Funded status | |||
Benefit obligations in excess of the fair value of plan assets | $ (8.2) | $ (11.9) |
Pension plans - Additional Info
Pension plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Net benefit obligations | $ 40 | $ 55.3 | ||
Defined benefit pension charge (credit) | (4) | (3.4) | $ 3.5 | |
Defined benefit pension (credit) charge | (4.7) | (4.2) | 2.8 | |
Defined benefit plan, expected amortization, next fiscal year | 2.3 | |||
Defined benefit plan, expected amortization of gain (loss), next fiscal year | 2.7 | |||
Defined benefit plan, expected amortization of prior service credit | 0.4 | |||
Allowance included in benefit obligation | 2.2 | 0 | ||
Expected future employer contributions, next fiscal year | 7.5 | |||
Employer contribution amount | 7.9 | |||
U.S. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Payment for benefit settlement. annuities purchased | 10 | |||
Benefit liabilities settlement charge (credit), annuities purchased | 0.1 | |||
Payment for benefit settlement, lump sum paid | 4.2 | |||
Benefit liabilities settlement credit, lump sum paid | 0.7 | |||
Gross benefit amounts settled, annuities purchased | 14.8 | |||
Gross benefit amounts settled, lump sum paid | 14.2 | |||
U.K. | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Net benefit obligations | 31.8 | 43.4 | ||
Defined benefit pension charge (credit) | (4.1) | (3.9) | (1.5) | |
Allowance included in benefit obligation | 2.2 | 0 | ||
Curtailment credit | $ 3.3 | |||
Past service credit | $ 14.9 | |||
Selling, General and Administrative Expenses | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined benefit pension charge (credit) | $ 0.7 | $ 0.8 | $ 0.7 |
Pension Plans - Schedule of Net
Pension Plans - Schedule of Net Benefit Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Current service cost | $ 0.1 | $ 0.1 | $ 0.4 |
Interest cost | 10.4 | 10.8 | 13.4 |
Expected return on assets | (16.7) | (16.6) | (16.4) |
Settlement loss | 0 | 0 | 4.3 |
Amortization of net actuarial loss | 2.7 | 2.8 | 2.3 |
Amortization of prior service credit | (0.5) | (0.5) | (0.5) |
Total (credit) / charge for defined benefit plans | (4) | (3.4) | 3.5 |
Total charge for defined contribution plans | 4.4 | 4 | 3.7 |
Total (credit) / charge for pension plans | 0.4 | 0.6 | 7.2 |
U.K. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current service cost | 0 | 0 | 0.3 |
Interest cost | 8.6 | 8.9 | 10.9 |
Expected return on assets | (14.5) | (14.8) | (14.1) |
Settlement loss | 0 | 0 | 0 |
Amortization of net actuarial loss | 2.3 | 2.5 | 1.9 |
Amortization of prior service credit | (0.5) | (0.5) | (0.5) |
Total (credit) / charge for defined benefit plans | (4.1) | (3.9) | (1.5) |
Total charge for defined contribution plans | 2.1 | 1.9 | 1.6 |
Total (credit) / charge for pension plans | (2) | (2) | 0.1 |
U.S./ other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Current service cost | 0.1 | 0.1 | 0.1 |
Interest cost | 1.8 | 1.9 | 2.5 |
Expected return on assets | (2.2) | (1.8) | (2.3) |
Settlement loss | 0 | 0 | 4.3 |
Amortization of net actuarial loss | 0.4 | 0.3 | 0.4 |
Amortization of prior service credit | 0 | 0 | 0 |
Total (credit) / charge for defined benefit plans | 0.1 | 0.5 | 5 |
Total charge for defined contribution plans | 2.3 | 2.1 | 2.1 |
Total (credit) / charge for pension plans | $ 2.4 | $ 2.6 | $ 7.1 |
Pension Plans - Schedule of Def
Pension Plans - Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||
Net actuarial gain | $ 1.4 | $ 1.6 |
Amortization of net gain | 2.7 | 2.8 |
Prior service cost | (2.2) | 0 |
Amortization of prior service credit | (0.5) | (0.5) |
Total recognized in other comprehensive income | 1.4 | 3.9 |
Total credit recognized in net periodic benefit cost and other comprehensive income | 5.4 | 7.3 |
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax [Abstract] | ||
Net actuarial loss | (136.4) | (140.5) |
Net prior service credit | 12.7 | 15.5 |
Total included in AOCI not yet recognized in the statement of income | $ (123.7) | $ (125) |
Pension Plans - Schedule of Ass
Pension Plans - Schedule of Assumptions Used (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
U.K. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.90% | 2.40% | 2.60% |
Expected return on assets | 4.90% | 4.80% | 5.20% |
Retail price inflation | 3.30% | 3.10% | 3.20% |
Consumer price inflation | 2.20% | 2.10% | 2.20% |
Life expectancy of male in the U.K. aged 65 at accounting date | 21 years 5 months | 21 years 7 months | |
Life expectancy of female in the U.K. aged 65 at accounting date | 24 years 1 month | 24 years 7 months | |
Life expectancy of male in the U.K. aged 65 at 20 years after accounting date | 22 years 9 months | 23 years 3 months | |
Life expectancy of female in the U.K. aged 65 at 20 years after accounting date | 25 years 8 months | 26 years 6 months | |
U.S. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.20% | 3.60% | 4.20% |
Expected return on assets | 6.20% | 6.00% | 6.30% |
Pre 6 April 1997 | U.K. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Rate of pension increases | 2.00% | 1.90% | 2.00% |
1997 To 2005 | U.K. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Rate of pension increases | 2.20% | 2.10% | 2.20% |
Post 5 April 2005 | U.K. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Rate of pension increases | 1.80% | 1.70% | 1.80% |
Pension Plans - Schedule of Exp
Pension Plans - Schedule of Expected Benefit Payments (Details) $ in Millions | Dec. 31, 2018USD ($) |
U.S./ other | |
Defined Benefit Plan Disclosure [Line Items] | |
2019 | $ 2.3 |
2020 | 2.3 |
2021 | 2.3 |
2022 | 2.3 |
2023 | 2.3 |
Thereafter | 11.7 |
U.K. | |
Defined Benefit Plan Disclosure [Line Items] | |
2019 | 17.6 |
2020 | 17.9 |
2021 | 18.3 |
2022 | 18.7 |
2023 | 19.1 |
Thereafter | $ 102.2 |
Pension Plans - Fair Value of P
Pension Plans - Fair Value of Plans' Assets (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 322 | $ 367.5 | $ 316.9 |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 322 | 367.5 | |
Equities and growth funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 193.7 | 226.3 | |
Government bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 46.7 | 49.9 | |
Corporate bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 81.6 | 91 | |
Cash | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0.3 | |
U.K. | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 283.4 | 326.3 | 280.3 |
U.K. | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 283.4 | 326.3 | |
U.K. | Equities and growth funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 173.1 | 203.4 | |
U.K. | Government bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 46.7 | 49.9 | |
U.K. | Corporate bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 63.6 | 72.7 | |
U.K. | Cash | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0.3 | |
U.S./ other | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 38.6 | 41.2 | $ 36.6 |
U.S./ other | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 38.6 | 41.2 | |
U.S./ other | Equities and growth funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 20.6 | 22.9 | |
U.S./ other | Government bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
U.S./ other | Corporate bonds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 18 | 18.3 | |
U.S./ other | Cash | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Ordinary Share Capital (Details) $ in Millions | 1 Months Ended | ||||||||||||
Aug. 31, 2018£ / $shares | Jun. 30, 2015£ / $shares | Mar. 31, 2015£ / $shares | Feb. 28, 2015£ / $shares | Aug. 31, 2014£ / $shares | May 30, 2014shares | Jan. 31, 2014£ / $shares | Mar. 31, 2013£ / $shares | Oct. 31, 2012£ / $shares | Feb. 28, 2007£ / $shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | May 31, 2014£ / $ | |
Class of Stock [Line Items] | |||||||||||||
Common stock, shares authorized | 761,885,318,444 | 769,463,688,000 | |||||||||||
Ordinary shares, value, authorized | $ | $ 185.6 | $ 186.6 | |||||||||||
Common stock, shares issued | 761,864,338,444 | 769,440,844,799 | |||||||||||
Ordinary shares, value, issued | $ | $ 176.5 | $ 176.2 | |||||||||||
Foreign currency exchange translation rate | £ / $ | 1.2843 | 1.5715 | 1.4847 | 1.5436 | 1.6580 | 1.6487 | 1.5173 | 1.6129 | 1.9613 | 1.6760 | |||
Stock Issued During Period, Shares, New Issues | 1,863,201 | 27,679 | 3,866 | 8,563 | 58,399 | 24,292 | 12,076 | 1,924 | 7,000,000 | 20,000,000 | |||
Ordinary shares | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Common stock, shares authorized | 40,000,000 | 40,000,000 | |||||||||||
Ordinary shares, value, authorized | $ | $ 35.7 | $ 35.7 | |||||||||||
Common stock, shares issued | 29,000,000 | 27,136,799 | |||||||||||
Ordinary shares, value, issued | $ | $ 26.6 | $ 25.3 | |||||||||||
Deferred shares | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Common stock, shares authorized | 761,845,318,444 | 769,423,688,000 | |||||||||||
Ordinary shares, value, authorized | $ | $ 149.9 | $ 150.9 | |||||||||||
Common stock, shares issued | 761,835,338,444 | 769,413,708,000 | |||||||||||
Ordinary shares, value, issued | $ | $ 149.9 | $ 150.9 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) | 12 Months Ended | |||||
Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016shares | Dec. 31, 2018£ / shares | Dec. 31, 2017£ / shares | Jun. 30, 2015USD ($)shares | |
Class of Stock [Line Items] | ||||||
Deferred shares, multiple of amount paid up on ordinary shares | 100 | |||||
Share buy-back program, authorized amount | $ | $ 10,000,000 | |||||
Share buy-back program, number of shares authorized | 2,700,000 | |||||
Number of ordinary shares repurchased (in shares) | 0 | 0 | ||||
Number of treasury shares held (in shares) | 378,201 | 527,616 | ||||
Cost of treasury shares held | $ | $ 4,300,000 | $ 5,800,000 | ||||
Own shares held by ESOP | ||||||
Class of Stock [Line Items] | ||||||
Number of ordinary shares repurchased (in shares) | 100,000 | |||||
Ordinary shares | ||||||
Class of Stock [Line Items] | ||||||
Common stock, par value (in GBP per share) | £ / shares | £ 0.50 | £ 0.50 | ||||
ESOP shares held by trustees | 1,621,301 | 104,709 | ||||
Common stock, shares, outstanding, actively traded | 28,376,729 | 25,929,312 | ||||
Deferred shares | ||||||
Class of Stock [Line Items] | ||||||
Common stock, par value (in GBP per share) | £ / shares | £ 0.0001 | £ 0.0001 |
Shareholders' Equity - Schedu_2
Shareholders' Equity - Schedule of Treasury Shares (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Movement In Treasury Shares [Roll Forward] | ||
Beginning balance | $ (5.8) | $ (7.1) |
Transfer of treasury shares into ESOP | 1.4 | 0.8 |
Utilization of treasury shares | 0.1 | 0.5 |
Ending balance | $ (4.3) | $ (5.8) |
Shareholders' Equity - Schedu_3
Shareholders' Equity - Schedule of Own Shares held by ESOP (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | $ 174.5 | $ 150.4 | $ 183.8 |
Utilization of ESOP shares | 0 | 0 | |
Issue of new shares | 0 | (6.3) | |
Shares sold from ESOP | 6.6 | ||
Ending balance | 184.3 | 174.5 | 150.4 |
Own shares held by ESOP | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning balance | (1) | (0.5) | (0.2) |
Transfer of treasury shares into ESOP | (1.4) | (0.8) | |
Utilization of ESOP shares | 1.1 | 0.3 | |
Issue of new shares | (1.3) | ||
Shares sold from ESOP | 0.4 | ||
Ending balance | $ (2.2) | $ (1) | $ (0.5) |
Shareholders' Equity - Schedu_4
Shareholders' Equity - Schedule of Dividend Paid and Proposed (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 06, 2019 | Nov. 07, 2018 | Aug. 01, 2018 | May 02, 2018 | Feb. 07, 2018 | Nov. 01, 2017 | Aug. 02, 2017 | May 03, 2017 | Feb. 01, 2017 | Nov. 02, 2016 | Aug. 03, 2016 | May 04, 2016 | Feb. 03, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Class of Stock [Line Items] | ||||||||||||||||
Dividends paid | $ 3.4 | $ 3.3 | $ 3.3 | $ 3.4 | $ 3.4 | $ 3.3 | $ 3.3 | $ 3.3 | $ 3.3 | $ 3.3 | $ 3.3 | $ 3.4 | $ 13.4 | $ 13.3 | $ 13.3 | |
Dividends paid (in USD per share) | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | ||||
Subsequent Event | ||||||||||||||||
Class of Stock [Line Items] | ||||||||||||||||
Dividends paid | $ 3.4 | |||||||||||||||
Dividends paid (in USD per share) | $ 0.125 |
Share Plans - Schedule of Movem
Share Plans - Schedule of Movement in Number of Shares held by ESOP Trustees (Details) | 12 Months Ended |
Dec. 31, 2018shares | |
Deferred shares | |
Movement in Number of Shares held by ESOP Trustees [Roll Forward] | |
Beginning balance | 15,977,968,688 |
New shares issued | 0 |
Shares utilized during the year | 0 |
Shares transferred into ESOP during the year | 0 |
Shares sold from the ESOP during the year | 0 |
Ending balance | 15,977,968,688 |
Ordinary shares | |
Movement in Number of Shares held by ESOP Trustees [Roll Forward] | |
Beginning balance | 104,709 |
New shares issued | 1,863,201 |
Shares utilized during the year | (149,609) |
Shares transferred into ESOP during the year | 120,000 |
Shares sold from the ESOP during the year | (317,000) |
Ending balance | 1,621,301 |
Share Plans - Additional Inform
Share Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions | May 23, 2017 | May 24, 2016 | Apr. 30, 2018 | Mar. 31, 2018 | Jan. 31, 2018 | May 31, 2017 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Loan outstanding from ESOP | $ 2 | $ 2.6 | ||||||||||
Number of awards exercisable (in shares) | 320,882 | |||||||||||
Weighted- average remaining contractual life (years) | 1 year 11 months | 2 years 5 months | ||||||||||
Cash received from options exercised | $ 0.5 | $ 0.9 | $ 0.1 | |||||||||
Tax benefit realized for the tax deductions from option exercises | $ 0.2 | $ 0.3 | $ 0.3 | |||||||||
Weighted average fair value of options granted (in USD per share) | $ 11.02 | $ 9.82 | $ 9.39 | |||||||||
Total intrinsic value of options exercised | $ 9.3 | $ 1.4 | $ 1.4 | |||||||||
Total unrecognized compensation cost related to share options | $ 3.8 | $ 3.4 | ||||||||||
Options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Total unrecognized compensation cost related to share options, period for recognition | 1 year 9 months | |||||||||||
Market Value Options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of awards exercisable (in shares) | 126,000 | |||||||||||
Market Value Options | Tranche One | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vestiing percentage | 40.00% | |||||||||||
Market Value Options | Tranche Two | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vestiing percentage | 20.00% | |||||||||||
Market Value Options | Tranche Three | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vestiing percentage | 20.00% | |||||||||||
Market Value Options | Tranche Four | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vestiing percentage | 20.00% | |||||||||||
Executive Share Option Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award expiration period | 10 years | |||||||||||
Long-Term Umbrella Incentive Plan (LTIP) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period | 3 years | |||||||||||
Award expiration period | 5 years | |||||||||||
Long-Term Umbrella Incentive Plan (LTIP) | Tranche One | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vestiing percentage | 33.33% | |||||||||||
Long-Term Umbrella Incentive Plan (LTIP) | Tranche Two | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vestiing percentage | 33.33% | |||||||||||
Long-Term Umbrella Incentive Plan (LTIP) | Tranche Three | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vestiing percentage | 33.33% | |||||||||||
Long-Term Umbrella Incentive Plan (LTIP) | Restricted Stock Units and Options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period | 3 years | 3 years | 3 years | |||||||||
Award expiration period | 2 years | 2 years | 2 years | |||||||||
Award granted during period (in shares) | 432,600 | 139,800 | 95,140 | |||||||||
Non-Executive Directors Equity Incentive Plan (Director EIP) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period | 1 year | |||||||||||
Non-Executive Directors Equity Incentive Plan (Director EIP) | Restricted Stock Units and Options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award granted during period (in shares) | 21,814 | 12,520 | 11,936 | |||||||||
Award fully vested and settled period after grant date | 1 year | |||||||||||
Non-Executive Directors Equity Incentive Plan (Director EIP) | Restricted Stock Units and Options | Tranche One | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period | 3 years | |||||||||||
Award granted during period (in shares) | 2,000 | |||||||||||
Non-Executive Directors Equity Incentive Plan (Director EIP) | Restricted Stock Units and Options | Tranche Two | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award granted during period (in shares) | 9,936 | |||||||||||
Award fully vested and settled period after grant date | 1 year | |||||||||||
Employee Benefit Trust | Ordinary shares | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Market value of shares held by ESOP (in USD per share) | $ 17.63 | $ 15.80 | ||||||||||
Chief Financial Officer | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares to be acquired within twelve months of appointment | 21,000 | |||||||||||
Chief Financial Officer | Restricted Stock Units (RSUs) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period | 3 years | |||||||||||
Chief Financial Officer | Performance Shares | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Equity instruments other than options, grants in period (over) (in shares) | 30,000 | |||||||||||
Number of vesting shares when lower target achieved | 5,000 | |||||||||||
Number of vesting shares when mid-point target achieved | 10,000 | |||||||||||
Number of vesting shares when top target achieved | 15,000 | |||||||||||
CEO | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares to be acquired within twelve months of appointment | 22,500 | |||||||||||
CEO | Restricted Stock Units (RSUs) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period | 4 years | |||||||||||
Equity instruments other than options, grants in period (over) (in shares) | 60,000 | |||||||||||
CEO | Performance Shares | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of vesting shares when lower target achieved | 30,000 | |||||||||||
Number of vesting shares when mid-point target achieved | 40,000 | |||||||||||
Number of vesting shares when top target achieved | 50,000 | |||||||||||
Within Twelve Months of Appointment | CEO | Restricted Stock Units (RSUs) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period | 3 years | |||||||||||
Equity instruments other than options, grants in period (over) (in shares) | 45,000 |
Share Plans - Schedule of Share
Share Plans - Schedule of Share-based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Other share-based compensation charges | $ 4.8 | $ 2.2 | $ 1.4 |
Restructuring share-based compensation charges | 0 | 0.9 | 0 |
Total share-based compensation charges | $ 4.8 | $ 3.1 | $ 1.4 |
Share Plans - Schedule of Sha_2
Share Plans - Schedule of Share Options Activities (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of shares | ||
Beginning balance (in shares) | 1,182,315 | |
Granted during the year (in shares) | 510,536 | |
Exercised during the year (in shares) | (833,360) | |
Accrued dividend awards (in shares) | 18,776 | |
Lapsed during the year (in shares) | (29,205) | |
Ending balance (in shares) | 849,062 | 1,182,315 |
Options exercisable at December 31, 2018 (in shares) | 320,882 | |
Options expected to vest as of December 31, 2018 (in shares) | 528,180 | |
Weighted- average exercise price | ||
Beginning balance (in USD per share) | $ 6.42 | |
Granted during the year (in USD per share) | 0.67 | |
Exercised during the year (in USD per share) | 7.43 | |
Accrued dividend awards (in USD per share) | 0.66 | |
Lapsed during the year (in USD per share) | 0.67 | |
Ending balance (in USD per share) | 2.10 | $ 6.42 |
Options exercisable at December 31, 2018 (in USD per share) | 4.31 | |
Options expected to vest as of December 31, 2018 (in USD per share) | $ 0.64 | |
Weighted- average remaining contractual life (years) | 1 year 11 months | 2 years 5 months |
Options exercisable, weighted-average remaining contractual life | 2 years 5 months | |
Options expected to vest, weighted-average remaining contractual life | 1 year 6 months | |
Aggregate intrinsic value ($M) | $ 13.3 | $ 11.1 |
Options exercisable, Aggregate intrinsic value | 4.3 | |
Options expected to vest, Aggregate intrinsic value | $ 9 |
Share Plans - Share Options Fai
Share Plans - Share Options Fair Value Assumptions (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield (%) | 4.00% | 4.00% |
Weighted average exercise price (in USD per share) | $ 0.65 | $ 0.65 |
Expected volatility range (%), minimum | 22.65% | 26.81% |
Expected volatility range (%), maximum | 35.77% | 35.81% |
Risk-free interest rate (%), minimum | 0.12% | 1.00% |
Risk-free interest rate (%), maximum | 2.57% | 2.01% |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life of share options range (years) | 6 months | 6 months |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life of share options range (years) | 6 years | 7 years 4 months 10 days |
Segmental Information - Additio
Segmental Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018divisionsegment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Number of operating divisions | division | 6 |
Number of reportable segments | 2 |
Segmental Information - Financi
Segmental Information - Financial information by reportable segment (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | $ 110.9 | $ 129.1 | $ 128.2 | $ 119.7 | $ 116.1 | $ 115.2 | $ 106.6 | $ 103.4 | $ 487.9 | $ 441.3 | $ 414.8 |
Adjusted EBITDA | 79.6 | 59.3 | 51.3 | ||||||||
Depreciation and amortization | 19 | 18.3 | 18 | ||||||||
Restructuring charges | 11.3 | 13.4 | 8.4 | 0.4 | |||||||
Total assets | 390.4 | 415.8 | 390.4 | 415.8 | 399.8 | ||||||
Capital expenditure | 13.6 | 10 | 17.3 | ||||||||
Gas Cylinders segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 238.1 | 220.2 | 225.8 | ||||||||
Adjusted EBITDA | 23.4 | 17 | 18.3 | ||||||||
Depreciation and amortization | 7.3 | 7.2 | 7.4 | ||||||||
Restructuring charges | 10 | 2.9 | 0 | ||||||||
Elektron segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net Sales | 249.8 | 221.1 | 189 | ||||||||
Adjusted EBITDA | 56.2 | 42.3 | 33 | ||||||||
Depreciation and amortization | 11.7 | 11.1 | 10.6 | ||||||||
Restructuring charges | 3.4 | 5.5 | 0.4 | ||||||||
Operating Segments | Gas Cylinders segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total assets | 145.6 | 156.9 | 145.6 | 156.9 | 151.9 | ||||||
Capital expenditure | 2.8 | 3.5 | 7.2 | ||||||||
Operating Segments | Elektron segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total assets | 210.5 | 210.4 | 210.5 | 210.4 | 190.9 | ||||||
Capital expenditure | 10.5 | 5.8 | 10.1 | ||||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total assets | $ 34.3 | $ 48.5 | 34.3 | 48.5 | 57 | ||||||
Capital expenditure | $ 0.3 | $ 0.7 | $ 0 |
Segmental Information - Reconci
Segmental Information - Reconciliation of consolidated segment income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting [Abstract] | |||||||||||
Adjusted EBITDA | $ 79.6 | $ 59.3 | $ 51.3 | ||||||||
Other share-based compensation charges | (4.8) | (2.2) | (1.4) | ||||||||
Loss on disposal of property, plant and equipment | (0.3) | 0 | (0.2) | ||||||||
Depreciation and amortization | (19) | (18.3) | (18) | ||||||||
Unwind of discount on deferred consideration | (0.2) | (0.2) | (0.4) | ||||||||
Restructuring charges | (13.4) | (8.4) | (0.4) | ||||||||
Impairment charges | (7.2) | (3.7) | 0 | ||||||||
Acquisition (costs) / credit | (4.3) | 1.3 | 0 | ||||||||
Other charges | 0 | (5.8) | 0 | ||||||||
Other general income | 0 | 0 | 2.5 | ||||||||
Defined benefits pension mark-to-market gain / (loss) | 4.7 | 4.2 | (2.8) | ||||||||
Interest expense, net | (4.6) | (6.3) | (6) | ||||||||
Provision for income taxes | (5.5) | (3.3) | (6.8) | ||||||||
Net income | $ (8.5) | $ 12.2 | $ 11.4 | $ 9.9 | $ (1) | $ 5.8 | $ 3.9 | $ 7.9 | $ 25 | $ 16.6 | $ 17.8 |
Segmental Information - Geograp
Segmental Information - Geographic information by region (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 110.9 | $ 129.1 | $ 128.2 | $ 119.7 | $ 116.1 | $ 115.2 | $ 106.6 | $ 103.4 | $ 487.9 | $ 441.3 | $ 414.8 |
Property, plant and equipment, net | 106.9 | 129.1 | 106.9 | 129.1 | 128.6 | ||||||
Top five countries | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 379.1 | 336.3 | 314.6 | ||||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 249.2 | 224.1 | 211.3 | ||||||||
Property, plant and equipment, net | 66.1 | 75.4 | 66.1 | 75.4 | 77.5 | ||||||
U.K. | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 47.6 | 40.4 | 36.5 | ||||||||
Property, plant and equipment, net | 36 | 36.6 | 36 | 36.6 | 34.3 | ||||||
Germany | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 42 | 36.8 | 32.2 | ||||||||
Italy | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 23.3 | 19 | 19.6 | ||||||||
France | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 17 | 16 | 15 | ||||||||
Rest of Europe | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 33.2 | 31.1 | 27.4 | ||||||||
Property, plant and equipment, net | 1.1 | 13.1 | 1.1 | 13.1 | 12.8 | ||||||
Asia Pacific | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 53 | 47.5 | 45.6 | ||||||||
Property, plant and equipment, net | 0.3 | 0.2 | 0.3 | 0.2 | 0.2 | ||||||
Other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 22.6 | 26.4 | 27.2 | ||||||||
Property, plant and equipment, net | $ 3.4 | $ 3.8 | $ 3.4 | $ 3.8 | $ 3.8 | ||||||
Geographic Concentration Risk | Revenue from Contract with Customer | Top five countries | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales, percent | 77.70% | 76.20% | 75.80% | ||||||||
Geographic Concentration Risk | Revenue from Contract with Customer | United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales, percent | 51.10% | 50.80% | 50.90% | ||||||||
Geographic Concentration Risk | Revenue from Contract with Customer | U.K. | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales, percent | 9.80% | 9.20% | 8.80% | ||||||||
Geographic Concentration Risk | Revenue from Contract with Customer | Germany | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales, percent | 8.60% | 8.30% | 7.80% | ||||||||
Geographic Concentration Risk | Revenue from Contract with Customer | Italy | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales, percent | 4.80% | 4.30% | 4.70% | ||||||||
Geographic Concentration Risk | Revenue from Contract with Customer | France | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales, percent | 3.40% | 3.60% | 3.60% | ||||||||
Geographic Concentration Risk | Revenue from Contract with Customer | Rest of Europe | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales, percent | 6.80% | 7.00% | 6.60% | ||||||||
Geographic Concentration Risk | Revenue from Contract with Customer | Asia Pacific | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales, percent | 10.90% | 10.80% | 11.00% | ||||||||
Geographic Concentration Risk | Revenue from Contract with Customer | Other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales, percent | 4.60% | 6.00% | 6.60% |
Commitments and Contingencies-
Commitments and Contingencies- Operating Lease Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Minimum lease payments under operating leases recognized in the consolidated income statement | $ 4.8 | $ 5.1 | $ 4.8 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2019 | 4.2 | ||
2020 | 4.1 | ||
2021 | 3.3 | ||
2022 | 2.7 | ||
Thereafter | 13.1 | ||
Total | $ 27.4 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) £ in Millions | 12 Months Ended | |||||||
Dec. 31, 2018USD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2017USD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2016USD ($) | Mar. 10, 2019USD ($) | Dec. 31, 2018GBP (£) | Dec. 31, 2017GBP (£) | |
Loss Contingencies [Line Items] | ||||||||
Capital expenditure commitments | $ 2,500,000 | $ 600,000 | $ 3,600,000 | |||||
Long-term debt, gross | 78,500,000 | |||||||
Committed Banking Facilities | ||||||||
Loss Contingencies [Line Items] | ||||||||
Debt maximum borrowing capacity | 150,000,000 | |||||||
Amount drawn/utilized | 0 | 1,300,000 | ||||||
Other - Bank overdraft | ||||||||
Loss Contingencies [Line Items] | ||||||||
Long-term debt, gross | 3,500,000 | 4,200,000 | ||||||
Bonding Facility For Bank Guarantees | ||||||||
Loss Contingencies [Line Items] | ||||||||
Debt maximum borrowing capacity | 3,800,000 | 4,100,000 | £ 3 | |||||
Amount drawn/utilized | 1,900,000 | £ 1.5 | 1,400,000 | £ 1 | ||||
Letter of Credit | ||||||||
Loss Contingencies [Line Items] | ||||||||
Debt maximum borrowing capacity | 8,900,000 | 9,500,000 | £ 7 | £ 7 | ||||
Amount drawn/utilized | $ 0 | $ 0 | ||||||
Subsequent Event | ||||||||
Loss Contingencies [Line Items] | ||||||||
Payment committed related to aborted acquisition (up to) | $ 3,500,000 |
Selected Quarterly Data (unau_3
Selected Quarterly Data (unaudited) - Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 110.9 | $ 129.1 | $ 128.2 | $ 119.7 | $ 116.1 | $ 115.2 | $ 106.6 | $ 103.4 | $ 487.9 | $ 441.3 | $ 414.8 |
Gross profit | 24.2 | 34 | 33.6 | 30.3 | 27.1 | 29.5 | 26.3 | 25.7 | 122.1 | 108.6 | 94.6 |
Operating income / (loss) | (13.1) | 15.7 | 14.6 | 12.8 | (3.1) | 8.5 | 6.3 | 10.2 | 30 | 21.9 | 32.9 |
Net income | $ (8.5) | $ 12.2 | $ 11.4 | $ 9.9 | $ (1) | $ 5.8 | $ 3.9 | $ 7.9 | $ 25 | $ 16.6 | $ 17.8 |
Earnings per ordinary share | |||||||||||
Basic earnings per ordinary share (usd per share) | $ (0.31) | $ 0.46 | $ 0.43 | $ 0.37 | $ (0.04) | $ 0.22 | $ 0.15 | $ 0.30 | $ 0.94 | $ 0.63 | $ 0.67 |
Diluted earnings per ordinary share (usd per share) | $ (0.31) | $ 0.44 | $ 0.42 | $ 0.36 | $ (0.04) | $ 0.22 | $ 0.15 | $ 0.30 | $ 0.90 | $ 0.62 | $ 0.67 |
Selected Quarterly Data (unau_4
Selected Quarterly Data (unaudited) - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | ||||
Restructuring charges | $ 11.3 | $ 13.4 | $ 8.4 | $ 0.4 |
Impairment charges | 7.2 | $ 13.9 | $ 5.9 | $ 0 |
Acquisition-related costs | $ 4.3 |
Related-Party Transactions (Det
Related-Party Transactions (Details) | 12 Months Ended | |||||||
Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2018£ / shares | Dec. 31, 2018AUD ($)shares | Dec. 28, 2018 | Dec. 31, 2017£ / shares | Dec. 31, 2017AUD ($)shares | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||||||||
Percentage of share capital acquired | 26.40% | |||||||
FTI Consulting | President | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related party transaction, amounts of transaction | $ 100,000 | |||||||
Luxfer Uttam India Private Limited | Equity Method Investee | ||||||||
Related Party Transaction [Line Items] | ||||||||
Equity method investment, ownership percentage | 51.00% | 51.00% | ||||||
Accounts receivable, related parties | $ 1,100,000 | 2,300,000 | ||||||
Related party transaction, net amounts receivable | $ 900,000 | 900,000 | ||||||
Nikkei-MEL Co. Limited | Equity Method Investee | ||||||||
Related Party Transaction [Line Items] | ||||||||
Equity method investment, ownership percentage | 50.00% | 50.00% | ||||||
Luxfer Holdings NA, LLC | Equity Method Investee | ||||||||
Related Party Transaction [Line Items] | ||||||||
Equity method investment, ownership percentage | 49.00% | 49.00% | ||||||
Accounts receivable, related parties | $ 0 | 900,000 | ||||||
Related party transaction, net amounts receivable | 0 | 4,700,000 | ||||||
Debt investments amount | 0 | 900,000 | ||||||
Cherokee Properties Inc. | President | ||||||||
Related Party Transaction [Line Items] | ||||||||
Related party transaction, amounts of transaction | 1,000,000 | 1,000,000 | ||||||
Gas Cylinders | Luxfer Uttam India Private Limited | Equity Method Investee | ||||||||
Related Party Transaction [Line Items] | ||||||||
Sales to related parties | 1,700,000 | 1,900,000 | ||||||
Related party transaction, amounts of transaction | 1,600,000 | 0 | ||||||
Gas Cylinders | Luxfer Holdings NA, LLC | Equity Method Investee | ||||||||
Related Party Transaction [Line Items] | ||||||||
Sales to related parties | 600,000 | 5,000,000 | ||||||
Interest income from related party | 400,000 | 300,000 | ||||||
Elektron | Nikkei-MEL Co. Limited | Equity Method Investee | ||||||||
Related Party Transaction [Line Items] | ||||||||
Sales to related parties | $ 900,000 | $ 1,200,000 | ||||||
Ordinary shares | ||||||||
Related Party Transaction [Line Items] | ||||||||
Common stock, par value (in GBP per share) | £ / shares | £ 0.50 | £ 0.50 | ||||||
Ordinary shares | Executive Leadership Team | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of common stock owned by related parties (in shares) | shares | 237,161 | 170,297 | 237,161 | 170,297 | ||||
Number of awards held by related parties (in shares) | shares | 600,528 | 316,797 | 600,528 | 316,797 | ||||
Ordinary shares | Stone Canyon Industries LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Number of common stock owned by related parties (in shares) | shares | 0 | 570,000 | 0 | 570,000 | ||||
Luxfer Holdings NA, LLC | ||||||||
Related Party Transaction [Line Items] | ||||||||
Percentage of share capital acquired | 51.00% | |||||||
Sub161 Pty Limited | Equity Method Investee | ||||||||
Related Party Transaction [Line Items] | ||||||||
Sales to related parties | $ 0 | $ 0 | ||||||
Accounts receivable, related parties | $ 0 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Mar. 10, 2019 | |
Held-for-sale | Magnesium Elektron CZ s.r.o. Subsidiary | ||
Subsequent Event [Line Items] | ||
Impairment of buildings to be disposed of | $ 3.4 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Payment committed related to aborted acquisition (up to) | $ 3.5 |