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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 28, 2021


OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 001-35370
Luxfer Holdings PLC
(Exact Name of Registrant as Specified in Its Charter)
England and Wales98-1024030
State or Other Jurisdiction of
 Incorporation or Organization
I.R.S. Employer Identification No.
Lumns Lane, Manchester, M27 8LN
Address of principal executive offices
Registrant’s telephone number, including area code: +1 414-269-2419
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Ordinary Shares, nominal value £0.50 eachLXFRNew York Stock Exchange
Securities registered or to be registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes    x No    o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes    x No    o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See definition of "large accelerated filer", "accelerated filer", "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.:
Large accelerated filer 
oAccelerated Filerx
Non-accelerated filer 
o
Smaller reporting company 
Emerging growth company 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes     No    x
The number of shares outstanding of Registrant’s only class of ordinary stock on March 28, 2021, was 27,817,947.





TABLE OF CONTENTS
Page
PART I FINANCIAL INFORMATION
Item 1.Condensed Financial Statements (unaudited)
Condensed Consolidated Statements of Income (unaudited)
Condensed Consolidated Statements of Comprehensive Income / (Loss) (unaudited)
Condensed Consolidated Balance Sheets (unaudited)
Condensed Consolidated Statements of Cash Flows (unaudited)
Condensed Consolidated Statements of Changes in Equity (unaudited)
Notes to Condensed Consolidated Financial Statements (unaudited)
Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations19 
Item 3.Quantitative and Qualitative Disclosures About Market Risk30 
Item 4.Controls and Procedures30 
PART II OTHER INFORMATION
Item 1.Legal Proceedings31 
Item 1A.Risk Factors31 
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds31 
Item 6.Exhibits32 
Signatures33 




PART I - FINANCIAL INFORMATION

Item 1.        Condensed Financial Statements (unaudited)

LUXFER HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
         First Quarter
In millions, except share and per-share data20212020
Net sales$85.2 $88.4 
Cost of goods sold(60.0)(64.3)
Gross profit25.2 24.1 
Selling, general and administrative expenses(10.6)(11.4)
Research and development(0.8)(0.7)
Restructuring charges(1.4)(2.8)
Acquisition-related costs(0.2)(0.2)
Other charges(1.1) 
Operating income11.1 9.0 
Interest expense(0.8)(1.2)
Defined benefit pension credit 0.6 1.1 
Income before income taxes10.9 8.9 
Provision for income taxes(2.3)(1.7)
Net income from continuing operations8.6 7.2 
Net loss from discontinued operations, net of tax(1.6)(1.0)
Gain on disposition of discontinued operations, net of tax7.5  
Net income / (loss) from discontinued operations$5.9 $(1.0)
Net income$14.5 $6.2 
Earnings / (loss) per share
Basic from continuing operations$0.31 $0.26 
Basic from discontinued operations$0.21 $(0.04)
Basic$0.52 $0.23 
Diluted from continuing operations$0.31 $0.26 
Diluted from discontinued operations$0.21 $(0.04)
Diluted$0.52 $0.22 
Weighted average ordinary shares outstanding
Basic27,658,871 27,440,423 
Diluted28,057,323 27,894,058 

See accompanying notes to condensed consolidated financial statements
1


LUXFER HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME / (LOSS) (UNAUDITED)
First Quarter
In millions20212020
Net income$14.5 $6.2 
Other comprehensive income / (loss)
Net change in foreign currency translation adjustment0.9 (7.6)
Pension and post-retirement actuarial gains, net of $0.1 and $0.1 tax, respectively
0.6 0.3 
Other comprehensive income / (loss), net of tax1.5 (7.3)
Total comprehensive income / (loss)$16.0 $(1.1)

See accompanying notes to condensed consolidated financial statements

2


LUXFER HOLDINGS PLC
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
March 28,December 31,
In millions, except share and per-share data20212020
Current assets
Cash and cash equivalents$31.8 $1.5 
Accounts and other receivables, net of allowances of $0.5 and $0.5, respectively
56.0 43.1 
Inventories75.6 68.8 
Current assets held-for-sale20.7 36.0 
Other current assets1.1 1.5 
Total current assets$185.2 $150.9 
Non-current assets
Property, plant and equipment, net$93.9 $86.0 
Right-of-use assets from operating leases9.0 9.5 
Goodwill70.5 70.2 
Intangibles, net12.7 12.8 
Deferred tax assets16.6 16.5 
Investments and loans to joint ventures and other affiliates0.5 0.5 
Total assets$388.4 $346.4 
Current liabilities
Accounts payable$27.7 $18.6 
Accrued liabilities23.7 21.5 
Taxes on income4.4 0.4 
Current liabilities held-for-sale7.3 11.4 
Other current liabilities14.0 13.5 
Total current liabilities$77.1 $65.4 
Non-current liabilities
Long-term debt$73.0 $53.4 
Pensions and other retirement benefits48.4 50.8 
Deferred tax liabilities2.8 2.0 
Other non-current liabilities8.2 7.7 
Total liabilities$209.5 $179.3 
Shareholders' equity
Ordinary shares of £0.50 par value; authorized 40,000,000 shares for 2021 and 2020; issued and outstanding 29,000,000 shares for 2021 and 2020
$26.6 $26.6 
Deferred shares of £0.0001 par value; authorized, issued and outstanding 761,845,338,444 shares for 2021 and 2020
149.9 149.9 
Additional paid-in capital69.7 70.6 
Treasury shares(4.0)(4.0)
Own shares held by ESOP(1.3)(1.4)
Retained earnings102.3 91.2 
Accumulated other comprehensive loss(164.3)(165.8)
Total shareholders' equity$178.9 $167.1 
Total liabilities and shareholders' equity$388.4 $346.4 
See accompanying notes to condensed consolidated financial statements
3


LUXFER HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
First Quarter
In millions20212020
Operating activities
Net income$14.5 $6.2 
Net income / (loss) from discontinued operations, (5.9)1.0 
Net income from continuing operations8.6 7.2 
Adjustments to reconcile net income to net cash provided by / (used for) operating activities
   Depreciation3.2 3.1 
   Amortization of purchased intangible assets0.2 0.2 
   Amortization of debt issuance costs0.1 0.1 
   Share-based compensation charges0.5 0.5 
   Deferred income taxes0.3 0.2 
   Defined benefit pension credit(0.6)(1.1)
   Defined benefit pension contributions(1.4)(1.4)
Changes in assets and liabilities
   Accounts and other receivables(7.4)(4.2)
   Inventories(0.1)(2.8)
   Other current assets(1.7)(0.2)
   Accounts payable6.7 (5.0)
   Accrued liabilities2.5 (0.5)
   Other current liabilities2.0 (0.5)
   Other non-current assets and liabilities2.3 (0.1)
Net cash provided by / (used) operating activities - continuing15.2 (4.5)
Net cash provided by operating activities - discontinued  
Net cash provided by / (used for) operating activities$15.2 $(4.5)
Investing activities
Capital expenditures$(1.4)$(2.5)
Proceeds from sale of discontinued operations21.0  
Business acquisition(19.3) 
Net cash provided by / (used) for investing activities - continuing$0.3 $(2.5)
Net cash used for investing activities - discontinued$ $ 
Net cash provided by / (used for) investing activities$0.3 $(2.5)
Financing activities
Net drawdown of long-term borrowings19.5 18.9 
Deferred consideration paid (0.4)
Proceeds from sale of shares 0.1 
Share-based compensation cash paid(1.3)(0.7)
Dividends paid(3.4)(3.4)
Net cash from financing activities$14.8 $14.5 
Effect of exchange rate changes on cash and cash equivalents (0.4)
Net increase $30.3 $7.1 
Cash and cash equivalents; beginning of year1.5 10.3 
Cash and cash equivalents; end of the First Quarter31.8 17.4 
Supplemental cash flow information:
Interest payments$0.9 $1.3 
Income tax payments 0.1 
See accompanying notes to condensed consolidated financial statements
4


LUXFER HOLDINGS PLC
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (UNAUDITED)
In millions, Ordinary
share
capital
Deferred
share
capital
Additional paid-in capitalTreasury shares NumberTreasury shares AmountOwn shares held by ESOP NumberOwn shares held by ESOP AmountRetained
earnings
Accumulated other comprehensive lossTotal
equity
At January 1, 2020$26.6 $149.9 $68.4 (0.4)$(4.0)(1.2)$(1.7)$84.8 $(149.6)$174.4 
Net income— — — — — — — 6.2 — 6.2 
Other comprehensive loss, net of tax— — — — — — — — (7.3)(7.3)
Dividends declared — — — — — — — (3.4)— (3.4)
Share-based compensation
— — 0.5 — — — — — — 0.5 
Utilization of treasury shares to satisfy share based compensation
— — (0.7)— — 0.1 0.1  — (0.6)
At March 29, 2020$26.6 $149.9 $68.2 (0.4)$(4.0)(1.1)$(1.6)$87.6 $(156.9)$169.8 
At January 1, 2021$26.6 $149.9 $70.6 (0.4)$(4.0)(1.0)$(1.4)$91.2 $(165.8)$167.1 
Net income— — — — — — — 14.5 — 14.5 
Other comprehensive income, net of tax— — — — — — — — 1.5 1.5 
Dividends declared— — — — — — — (3.4)— (3.4)
Share-based compensation
— — 0.5 — — — — — — 0.5 
Utilization of shares from ESOP to satisfy share based compensation
— — (1.4)— —  0.1 — — (1.3)
At March 28, 2021$26.6 $149.9 $69.7 (0.4)$(4.0)(1.0)$(1.3)$102.3 $(164.3)$178.9 

See accompanying notes to condensed consolidated financial statements
5


LUXFER HOLDINGS PLC
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1.    Basis of Presentation and Responsibility for interim Financial Statements
We prepared the accompanying unaudited consolidated condensed financial statements of Luxfer Holdings PLC and all wholly-owned, majority owned or otherwise controlled subsidiaries on the same basis as our annual audited financial statements. We condensed or omitted certain information and footnote disclosures normally included in our annual audited financial statements, which we prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP).
Our quarterly financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2020. As used in this report, the terms "we," "us," "our," "Luxfer" and "the Company" mean Luxfer Holdings PLC and its subsidiaries, unless the context indicates another meaning.
In the opinion of management, our financial statements reflect all adjustments, which are of a normal recurring nature, necessary for presentation of financial statements for interim periods in accordance with U.S. GAAP and with the instructions to Form 10-Q in Article 10 of Securities and Exchange Commission (SEC) Regulation S-X.
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions about future events that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of our financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates, and any such differences may be material to our financial statements.
Our fiscal year ends on December 31. We report our interim quarterly periods on a 13-week quarter basis, ending on a Sunday. The First Quarter, 2021, ended March 28, 2021, and the First Quarter, 2020, ended March 29, 2020.
Discontinued operations
Certain amounts in prior-year financial statements were reclassified to conform to the current-year presentation primarily due to the classification of certain businesses as discontinued operations.
Impact of COVID-19 on the Financial Statements
In March 2020, the World Health Organization characterized the coronavirus ("COVID-19") a pandemic. The rapid spread of the pandemic and the continuously evolving responses to combat it have had an increasingly negative impact on the global economy. Luxfer’s 2020 results were significantly affected by the global macro environment resulting from the COVID-19 pandemic, including broad-based market weakness, which was especially evident in our general industrial and transportation end-markets, contributing to a full year decline of 18.0% and 14.7% respectively, in each of those markets.
In the first quarter of 2021, with net sales down only 3.6% and adjusted EBITDA up 12% on the prior year quarter (which was largely unaffected by the pandemic), Luxfer continues to operate all of its facilities, following temporary closures at a small number of locations in the second and third quarters of 2020. Due to weaker demand resulting from uncertain economic conditions, potential supply constraints, and the impact of COVID-19, Luxfer also implemented additional cost saving programs in the second half of 2020, including headcount reductions. While Company performance is now much improved, as the situation continues to evolve, if warranted, the Company may again suspend or reduce operations at certain facilities. In view of the rapidly changing business environment, unprecedented market volatility and heightened degree of uncertainty resulting from COVID-19, we are currently unable to fully determine its future impact on our business. However, we continue to monitor the progression of the pandemic and its potential effect on our financial position, results of operations and cash flows.
The Company recognized that the COVID-19 pandemic constituted a triggering event in accordance with Accounting Standards Codification, ("ASC"), 350 Intangibles - Goodwill and Other, during the first quarter of 2020 and therefore performed an impairment assessment of its goodwill and other intangible assets. Based on the forecast at that time, we did not identify any impairments, nor marginal outcomes. During 2020 and in the first quarter of 2021, quarterly re-forecasts were performed to assess the impact COVID-19 was having on our results and liquidity, and in the fourth quarter of 2020 we carried out our annual goodwill and other intangibles impairment test using cash flows from the annual and strategic plan budgeting exercise. Nothing during the 2020 / 2021 re-forecasts nor the 2021 budget process has changed our assessment of fair value, with no impairments nor marginal outcomes identified. 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
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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 and judgments may change as we learn more about the impact of the COVID-19 pandemic.
In relation to liquidity, the Company has access to a revolving credit facility (see Note 9) and has performed
stress testing on financial covenants using current forecast information and has not identified any liquidity concerns.
Accounting standards issued but not yet effective
None that will be material to the Company.

2.    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:
First Quarter
In millions except share and per-share data20212020
Basic earnings:
Net income from continuing operations$8.6 $7.2 
Net income / ( loss) from discontinued operations5.9 (1.0)
Net income $14.5 $6.2 
Weighted average number of £0.50 ordinary shares:
For basic earnings per share27,658,871 27,440,423 
Dilutive effect of potential common stock398,452 453,635 
For diluted earnings per share28,057,323 27,894,058 
Earnings / (loss) per share using weighted average number of ordinary shares outstanding:(1)
Basic earnings per ordinary share for continuing operations$0.31 $0.26 
Basic earnings / (loss) per ordinary share for discontinued operations$0.21 $(0.04)
Basic earnings per ordinary share$0.52 $0.23 
Diluted earnings per ordinary share for continuing activities$0.31 $0.26 
Diluted earnings / (loss) per ordinary share for discontinued operations$0.21 $(0.04)
Diluted earnings per ordinary share$0.52 $0.22 

(1) The calculation of earnings per share is performed separately for continuing and discontinued operations. As a result, the sum of the two in any particular period may not equal the earnings-per-share amount in total.
In the first quarter of 2020, basic average shares outstanding and diluted average shares outstanding were the same for discontinued operations because the effect of potential shares of common stock was anti-dilutive since the Company generated a net loss from discontinued operations. As a result, 453,635 shares combined were not included in the computation of diluted EPS for discontinued operations for the first quarter of 2020.

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3.    Net sales
Disaggregated sales disclosures for the quarter ended March 28, 2021, and March 29, 2020, are included below and in Note 14, Segmental Information.
First Quarter
20212020
In millionsGas CylindersElektronTotalGas CylindersElektronTotal
General industrial$5.8 $21.7 $27.5 $6.2 $27.7 $33.9 
Transportation14.9 11.8 26.7 12.9 11.2 24.1 
Defense, First Response & Healthcare15.5 15.5 31.0 18.1 12.3 30.4 
$36.2 $49.0 $85.2 $37.2 $51.2 $88.4 
The Company’s performance obligations are satisfied at a point in time. With the reclassification of our Superform business as discontinued operations, none of the Company's revenue is satisfied over time. As a result, the Company's contract receivables, contract assets and contract liabilities are included within current assets and liabilities held-for-sale.
4.    Restructuring
The $1.4 million restructuring charge in 2021 included $0.5 million of further costs associated with the closure of Luxfer Gas Cylinders France and $0.9 million in relation to rationalization activity in the Elektron segment, which included $0.1 million of asset and inventory impairments, largely in relation to the planned divestiture of our small Luxfer Magtech production facility in Ontario, Canada.
Restructuring-related costs included within Restructuring charges in the Condensed Consolidated Financial Statements by reportable segment were as follows:
First Quarter
In millions20212020
Severance and related costs
Gas Cylinders segment$0.5 $2.6 
Elektron segment0.9  
Other 0.2 
Total restructuring charges$1.4 $2.8 

Activity related to restructuring, recorded in Other current liabilities in the consolidated balance sheets is summarized as follows:
In millions2021
Balance at January 1,$9.0 
Costs incurred1.4 
Cash payments and other(1.1)
Balance at March 29,$9.3 

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5.    Acquisition-related costs
On March 15, 2021 the Company completed the acquisition of the Structural Composites Industries LLC (SCI) business of Worthington Industries, Inc., based in Pomona, California, for $19.3 million cash consideration. The acquisition of SCI strengthens Luxfer’s composite cylinder offerings and aligns with recent investment to enhance our alternative fuel capabilities to capitalize on the growing compressed natural gas (CNG) and hydrogen opportunities.
We are currently undertaking the purchase price allocation in line with ASC 805 - Business combinations and as a result the allocations presented in the consolidated balance sheets are provisional based on our best current estimates. The provisional acquired assets and liabilities as of march 15, 2021 are presented as follows:
In millionsMarch 15, 2021
Accounts and other receivables$4.8 
Inventories6.7
Property, plant and equipment9.5
Less:
Accounts payable1.6
Accrued expenses0.1
Net assets acquired$19.3 
Purchase consideration$19.3 
Actual and pro forma revenue and results of operations for the acquisition of SCI have not been presented as they are not material to the consolidated revenue and results of operations.
Acquisition-related costs of $0.2 million in the First Quarter of 2021 represent professional fees incurred in relation to the SCI acquisition.
Acquisition-related costs of $0.2 million in the First Quarter of 2020 related to M&A exploration activities net of a $0.1 million release of deferred contingent consideration.

6.    Other charges
Other charges of $1.1 million in the First Quarter of 2021 relates to the settlement of a class action lawsuit in the Gas Cylinders segment in relation to an alleged historic violation of the Californian Labor Code, concerning a Human Resources administration matter. The Company expects the cash related to the settlement to be paid during the year, with no additional charge to the income statement.

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7.    Supplementary balance sheet information
March 28,December 31,
In millions20212020
Accounts and other receivables
Trade receivables$48.8 $33.6 
Related parties0.2 0.2
Prepayments and accrued income4.25.5
Derivative financial instruments0.30.2
Deferred consideration0.20.2
Other receivables2.33.4
Total accounts and other receivables$56.0 $43.1 
Inventories
Raw materials and supplies$30.6 $26.2 
Work-in-process24.0 19.7 
Finished goods21.0 22.9 
Total inventories$75.6 $68.8 
Other current assets
Income tax receivable1.1 1.5 
Total other current assets$1.1 $1.5 
Property, plant and equipment, net
Land, buildings and leasehold improvements$65.5 $65.2 
Machinery and equipment269.2 255.3 
Construction in progress5.1 7.8 
Total property, plant and equipment339.8 328.3 
Accumulated depreciation and impairment(245.9)(242.3)
Total property, plant and equipment, net$93.9 $86.0 
Other current liabilities
Contingent liabilities$11.5 $10.1 
Derivative financial instruments0.3 0.4 
Operating lease liability2.0 2.9 
Other current liabilities0.2 0.1 
Total other current liabilities$14.0 $13.5 
Other non-current liabilities
Contingent liabilities$1.0 $1.0 
Operating lease liability7.2 6.7 
Total other non-current liabilities$8.2 $7.7 



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7.    Supplementary balance sheet information (continued)
Held-for-sale assets and liabilities
In 2020, the Company classified its Superform aluminum superplastic forming business operating from sites in the U.S. and the U.K, and our U.S. aluminum gas cylinder business as assets and liabilities held-for-sale in accordance with ASC 205-20 Discontinued Operations. See Note 10 for a breakdown of this disposal group.
There was also one building valued at $3.7 million, within our Elektron Segment classified as held-for-sale assets, previously included within other current assets. The building was classified as held-for-sale in 2019, as the expectation was that the building would be sold in 2020. There are conditions attached to the sale which the Company now expects to be met in 2021 and as such the building continues to be classified as held-for-sale.
The respective assets and liabilities of the above disposal groups have been reclassified as held-for-sale per the table below.
Held-for-sale assets March 28,December 31,
In millions20212020
Property, plant and equipment$5.1 $11.6 
Right-of-use-assets from operating leases2.9 3.1 
Inventory6.3 12.6 
Accounts and other receivables6.4 8.7 
Held-for-sale assets$20.7 $36.0 
Held-for-sale liabilities
Accounts payable2.9 4.3 
Accrued liabilities1.1 1.5 
Other current liabilities3.3 5.6 
Held-for-sale liabilities$7.3 $11.4 

8.     Goodwill and other identifiable intangible assets
Changes in goodwill during the First Quarter, ended March 28, 2021, were as follows:
In millionsGas CylindersElektronTotal
At January 1, 2021$27.9 $42.3 $70.2 
Exchange difference0.2 0.1 0.3 
Balance at March 28, 2021$28.1 $42.4 $70.5 

Identifiable intangible assets consisted of the following:
March 28, 2021December 31, 2020
In millionsGrossAccumulated amortizationNetGrossAccumulated amortizationNet
Customer relationships$13.4 $(5.3)$8.1 $13.4 $(5.2)$8.2 
Technology and trading related8.4 (3.8)4.6 8.3 (3.7)4.6 
$21.8 $(9.1)$12.7 $21.7 $(8.9)$12.8 

Identifiable intangible asset amortization expense was $0.2 million and $0.2 million for the First Quarter of 2021 and 2020 respectively.
Intangible asset amortization expense during the remainder of 2021 and over the next five years is expected to be approximately $0.5 million in 2021, $0.7 million in 2022, $0.7 million in 2023, $0.7 million in 2024, $0.7 million in 2025 and $0.7 million in 2026.

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9.    Debt

Debt outstanding was as follows:
In millionsMarch 28, 2021December 31, 2020
4.88% Loan Notes due 2023
25.0 25.0 
4.94% Loan Notes due 2026
25.0 25.0 
Revolving credit facility23.6 4.1 
Unamortized debt issuance costs(0.6)(0.7)
Total debt$73.0 $53.4 
Less current portion$ $ 
Non-current debt$73.0 $53.4 
The weighted-average interest rate on the revolving credit facility was 2.1% for the First Quarter of 2021 and 2.19% for the full-year 2020.
The maturity profile of the Company's debt, excluding unamortized issuance costs and discounts, is as follows:
In millions202120222023202420252026ThereafterTotal
Loan Notes due 2023  25.0     25.0 
Loan Notes due 2026     25.0  25.0 
Revolving credit facility 23.6      23.6 
Total debt $ $23.6 $25.0 $ $ $25.0 $ $73.6 
Loan notes due and revolving credit facility
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 March 28, 2021.
The Loan Notes due 2023 and 2026, the Revolving Credit Facility and the Note Purchase and Private Shelf Agreement are governed by the law of the State of New York.
Senior Facilities Agreement
During the First Quarter of 2021, we drew down net $19.5 million on the Revolving Credit Facility and the balance outstanding at March 28, 2021, was $23.6 million, and at December 31, 2020, was $4.1 million, with $126.4 million undrawn at March 28, 2021 and $145.9 million at December 31, 2020.
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 March 28, 2021.

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10.    Discontinued Operations
Our Superform aluminum superplastic forming business operating from sites in the U.S. and the U.K, and our U.S. aluminum gas cylinder business were historically included in the Gas Cylinders segment. As a result of our decision to exit non-strategic aluminum product lines, we have reflected the results of operations of these businesses as discontinued operations in the Condensed Consolidated Statements of Income for all periods presented. Our U.S. aluminum business was sold in March 2021 and we expect the sales of our Superform businesses to occur in 2021.
The assets and liabilities of the Superform businesses have been presented within Current assets held-for-sale and Current liabilities held-for-sale in the consolidated balance sheets for 2021 and 2020 and our U.S. aluminum business in 2020. The Company has determined that the carrying value of the held-for-sale assets is recoverable and as a result no loss allowances have been recognized.
Results of discontinued operations were as follows:
First Quarter
In millions20212020
Net sales$9.7 $15.4 
Cost of goods sold(10.1)(15.0)
Gross profit$(0.4)$0.4 
Selling, general and administrative expenses(1.4)(1.4)
Operating loss$(1.8)$(1.0)
Tax credit0.2  
Net loss$(1.6)$(1.0)

In the First Quarter of 2021, the Company made a $7.5 million gain on the sale of the U.S. aluminum business, net of a $2.0 million tax charge.

First Quarter
In millions2021
Cash consideration received$21.0 
Less
Net assets sold(11.5)
Gross gain on disposition9.5 
Tax expense(2.0)
Net gain on disposition$7.5 
The assets and liabilities classified as held-for-sale related to discontinued operations were as follows:
Held-for-sale assets March 28,December 31,
In millions20212020
Property, plant and equipment$1.4 $7.9 
Right-of-use-assets from operating leases2.9 3.1 
Inventory6.3 12.6 
Accounts and other receivables6.4 8.7 
Held-for-sale assets$17.0 $32.3 
Held-for-sale liabilities
Accounts payable2.9 4.3 
Accrued liabilities1.1 1.5 
Other current liabilities3.3 5.6 
Held-for-sale liabilities$7.3 $11.4 
Also included within assets held-for-sale in 2021 and 2020 is one building valued at $3.7 million, within our Elektron Segment.
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The depreciation and amortization, capital expenditures and significant non-cash items were as follows:
First Quarter
In millions20212020
Cash flows from discontinued operating activities:
Depreciation$0.2 $0.3 
Cash balances are swept into the treasury entities at the end of each day, these sweeps are recorded within operating cash flows in the statements of cash flows.

11.    Income Taxes
We manage our affairs so that we are centrally managed and controlled in the United Kingdom (“U.K.”) and therefore have our tax residency in the U.K. The provision for income taxes consists of provisions for the U.K. and international income taxes. We operate in an international environment with operations in various locations outside the U.K. Accordingly, the consolidated income tax rate is a composite rate reflecting the earnings in the various locations and the applicable rates.
The effective income tax rate for the Quarter ended March 28, 2021, was 21.1%, compared to 19.1% for the Quarter ended March 29, 2020.

12.    Share Plans

Total share-based compensation expense for the quarters ended March 28, 2021, and March 29, 2020, was as follows:
First Quarter
In millions20212020
Total share-based compensation charges$0.5 $0.5 
In March 2021, we issued our annual share-based compensation grants under the Luxfer Holdings PLC Long-Term Umbrella Incentive Plan. The total number of awards issued was approximately 110,000 and the weighted average fair value of options granted in 2021 was estimated to be $21.14 per share.
Also in March 2021, approximately 45,000 awards were granted based on the achievement of total shareholder return targets from the period January 1, 2018 to December 31, 2020. The awards vested immediately upon grant.
The following table illustrates the assumptions used in deriving the fair value of share options granted during the First Quarter of 2021 and the year-ended December 31, 2020:
First QuarterYear ended December 31,
20212020
Dividend yield (%)
3.39 - 4.09
3.39 - 4.09
Expected volatility range (%)
36.48 - 56.28
36.48 - 56.28