Related-Party Transactions

12 Months Ended

Dec. 31, 2021

Related Party Transactions [Abstract]

Related-Party Transactions

Related-Party Transactions

Joint venture in which the Company is a venturer

During 2021, the Company maintained its 50% investment in the equity of the joint venture, Nikkei-MEL Company Limited. During 2021, the Elektron Segment made $0.8 million of sales to the joint venture (2020: $0.6 million). At December 31, 2021, the gross and net amounts receivable from the joint venture amounted to $0.1 million (2020: $0.2 million).

In July 2020, the Company sold its 51% investment in the equity of its previous joint venture (see note 3 Acquisitions and Disposals), Luxfer Uttam India Private Limited. During 2020, prior to the sale, the Gas Cylinders Segment made $1.5 million (2019: $6.4 million) of sales to the joint venture.

In addition, in 2018, we transferred goods to Luxfer Uttam on extended credit terms with a sales value of $1.6 million, where we did not deem it to be probable that we would collect substantially all of the consideration. In accordance with ASC 606, Revenue from Contracts with Customers, we did not recognize any revenue in relation to this transaction in 2018. However, this revenue was recognized, in full, during 2019.

Associates in which the Company holds an interest

During 2020, Sub161 Pty Limited, in which the Company held 26.4% equity, was liquidated as it no longer traded. During 2020, there were no sales made to or amounts receivable from the associate.

Transactions with other related parties

At December 31, 2021, the directors and key management comprising the members of the Executive Leadership Team owned 500,237 £0.50 ordinary shares (2020: 425,413 £0.50 ordinary shares) and held awards over a further 299,021 £0.50 ordinary shares (2020: 248,522 £0.50 ordinary shares).

During the years ended December 31, 2021, and December 31, 2020, share options held by members of the Executive Leadership Team were exercised.

Cherokee Properties Inc. represented a related party in 2019 due to its association with Chris Barnes, who was, until July 2019, the president of one of our operating segments and is the president of Cherokee Properties Inc. During 2019, we engaged with Cherokee Properties Inc. for rental and associated costs regarding our manufacturing site in Madison, IL, for the value of $1.1 million. We continue to engage with Cherokee Properties Inc., although not as a related-party.

Other than the transactions with the joint ventures, associates and key management personnel disclosed above, no other related-party transactions have been identified.