Segment Information

In accordance with ASC Topic 280, “Segment Reporting”, for purposes of segment performance measurement, we do not allocate to the business segments items that are of a non-operating nature, including charges which occur from time to time related to our asbestos liability and our legacy environmental liabilities, as such items are not related to current business activities; or corporate organizational and functional expenses of a governance nature. “Corporate expenses-before asbestos and environmental charges” consist of corporate office expenses including, compensation, benefits, occupancy, depreciation, and other administrative costs. Assets of the business segments exclude general corporate assets, which principally consist of cash and cash equivalents, deferred tax assets, insurance receivables, certain property, plant and equipment, and certain other assets.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. We account for intersegment sales and transfers as if the sales or transfers were to third parties at current market prices.

Our segments are reported on the same basis used internally for evaluating performance and for allocating resources. We have four reporting segments: Fluid Handling, Payment & Merchandising Technologies, Aerospace & Electronics and Engineered Materials.

A brief description of each of our segments are as follows:

Fluid Handling

The Fluid Handling segment is a provider of highly engineered fluid handling equipment for critical performance applications that require high reliability. The segment is comprised of Process Valves and Related Products, Commercial Valves, and Other Products. Process Valves and Related Products include on/off valves and related products for critical and demanding applications in the chemical, oil & gas, power, and general industrial end markets globally. Commercial Valves includes the manufacturing and distribution of valves and related products for the non-residential construction, general industrial, and to a lesser extent, municipal markets. Other Products include pumps and related products primarily for water and wastewater applications in the industrial, municipal, commercial and military markets.

Payment & Merchandising Technologies

The Payment & Merchandising Technologies segment consists of Crane Payment Innovations ("CPI"), Crane Merchandising Systems ("CMS") and Crane Currency. CPI provides high technology payment acceptance and dispensing products to original equipment manufacturers, including coin accepters and dispensers, coin hoppers, coin recyclers, bill validators and bill recyclers. CMS provides merchandising equipment, including include food, snack and beverage vending machines and vending machine software and online solutions. Crane Currency is a supplier of banknotes and highly engineered banknote security feature.

Aerospace & Electronics

Aerospace & Electronics segment supplies critical components and systems, including original equipment and aftermarket parts, primarily for the commercial aerospace and military aerospace and defense markets.

Engineered Materials

Engineered Materials segment manufactures fiberglass-reinforced plastic ("FRP") panels and coils, primarily for use in the manufacturing of recreational vehicles ("RVs"), truck bodies and trailers (Transportation), with additional applications in commercial and industrial buildings (Building Products).

For the year ended December 31, 2018, operating profit includes acquisition-related and integration charges, acquisition-related inventory and backlog amortization and restructuring charges. For the year ended December 31, 2017, operating profit includes acquisition-related and integration charges and restructuring charges. For the year ended December 31, 2016, operating profit includes an asbestos charge and a legal settlement charge. See Note 2, “Acquisitions and Divestitures” for discussion on the acquisition-related costs. See Note 14, “Restructuring” for discussion of the restructuring charges. See Note 11, “Commitments and Contingencies” for discussion of the asbestos charge and legal settlement charge.

Financial information by reportable segment is set forth below:



(in millions) December 31,	2018		2017		2016
Fluid Handling
Net sales	$	1,101.8	$	1,042.5	$	999.5
Operating profit ^(a)	118.8		101.7		109.4
Assets	878.2		941.6		845.9
Goodwill	240.8		245.4		212.3
Capital expenditures	19.9		14.7		10.3
Depreciation and amortization	15.2		16.2		10.8
Payment & Merchandising Technologies
Net sales	$	1,257.0	$	776.7	$	745.8
Operating profit ^(a)	186.0		145.9		133.2
Assets	2,074.4		1,215.7		1,188.9
Goodwill	789.2		587.7		563.3
Capital expenditures	57.5		14.2		8.7
Depreciation and amortization	82.4		34.2		33.9
Aerospace & Electronics
Net sales	$	743.5	$	691.4	$	745.7
Operating profit^(a)	164.2		160.3		149.7
Assets	603.9		573.0		555.5
Goodwill	202.4		202.4		202.3
Capital expenditures	20.6		16.7		28.7
Depreciation and amortization	13.0		14.0		11.7
Engineered Materials
Net sales	$	243.2	$	275.4	$	257.0
Operating profit ^(a)	37.8		49.4		49.0
Assets	222.1		220.8		224.7
Goodwill	171.3		171.4		171.3
Capital expenditures	10.3		3.1		3.5
Depreciation and amortization	6.4		6.7		6.1

(a) In 2018, we adopted amended guidance related to the presentation of net periodic pension cost and net periodic postretirement cost which resulted in a reclassification of the non-service cost components of net benefit cost from selling, general and administrative expenses to miscellaneous income, net of i) $15.3 million in 2018 and $10.1 million in each of 2017 and 2016 in the Fluid Handling segment; ii) $2.9 million, $2.5 million and $2.3 million in 2018, 2017 and 2016, respectively in the Payment & Merchandising Technologies segment; iii) $0.6 million, $(0.1) million and $0.1 million in 2018, 2017 and 2016, respectively in the Aerospace & Electronics segment; and iv) $0.2 million in 2018 in the Engineered Materials segment.

Information by reportable segment (continued):



(in millions) December 31,	2018			2017			2016
TOTAL NET SALES	$	3,345.5		$	2,786.0		$	2,748.0
Operating profit (loss)
Reporting segments	$	506.8		$	457.3		$	441.3
Corporate expense — before asbestos ^(b)	(65.5		)	(68.9		)	(62.2		)
Corporate expense — asbestos	—			—			(192.4		)
TOTAL OPERATING PROFIT	$	441.3		$	388.4		$	186.7
Interest income	2.3			2.5			1.9
Interest expense	(50.9		)	(36.1		)	(36.5		)
Miscellaneous income, net	18.7			12.7			12.0
INCOME BEFORE INCOME TAXES	$	411.4		$	367.5		$	164.1
Assets
Reporting segments	$	3,778.6		$	2,951.1		$	2,815.0
Corporate	264.1			642.4			613.0
TOTAL ASSETS	$	4,042.7		$	3,593.5		$	3,428.0
Goodwill
Reporting segments	$	1,403.7		$	1,206.9		$	1,149.2
Capital expenditures
Reporting segments	$	108.3		$	48.7		$	51.2
Corporate	0.5			0.3			0.3
TOTAL CAPITAL EXPENDITURES	$	108.8		$	49.0		$	51.5
Depreciation and amortization
Reporting segments	$	117.0		$	71.1		$	62.5
Corporate	3.0			1.6			4.9
TOTAL DEPRECIATION AND AMORTIZATION	$	120.0		$	72.7		$	67.4

(b) In 2018, we adopted amended guidance related to the presentation of net periodic pension cost and net periodic postretirement cost which resulted in a reclassification of the non-service cost components of net benefit cost from selling, general and administrative expenses to miscellaneous income, net of $2.1 million in 2018 and $1.1 million in each of 2017 and 2016.

Information by geographic region:



(in millions) December 31,	2018		2017		2016
Net sales^(c)
United States	$	2,107.2	$	1,767.3	$	1,769.7
Canada	172.3		169.0		163.2
United Kingdom	397.5		388.2		357.6
Continental Europe	484.2		268.6		279.6
Other international	184.3		192.9		177.9
TOTAL NET SALES	$	3,345.5	$	2,786.0	$	2,748.0
Assets ^(c)
United States	$	1,866.5	$	1,645.3	$	1,609.4
Canada	206.2		170.0		159.8
Europe	897.7		702.9		588.0
Other international	808.2		432.9		457.8
Corporate	264.1		642.4		613.0
TOTAL ASSETS	$	4,042.7	$	3,593.5	$	3,428.0
Tangible Assets ^(c)
United States	$	442.3	$	645.8	$	621.3
Canada	156.3		115.8		109.0
Europe	646.8		436.6		357.9
Other international	648.2		269.2		292.4
Corporate	264.1		642.4		613.0
TOTAL TANGIBLE ASSETS	$	2,157.7	$	2,109.8	$	1,993.6

The table below presents net sales by product line for each segment:



(in millions) December 31,	2018		2017		2016
Fluid Handling
Process Valves and Related Products	$	685.4	$	640.1	$	619.2
Commercial Valves	325.4		310.1		290.9
Other Products	91.0		92.3		89.4
Total Fluid Handling	$	1,101.8	$	1,042.5	$	999.5

Payment & Merchandising Technologies
Payment Acceptance and Dispensing Products	$	594.2	$	575.9	$	511.8
Banknotes and Security Products	458.2		—		—
Merchandising Equipment	204.6		200.8		234.0
Total Payment & Merchandising Technologies	$	1,257.0	$	776.7	$	745.8

Aerospace & Electronics
Commercial Original Equipment	$	343.4	$	346.1	$	354.9
Military Original Equipment	195.7		159.0		200.3
Commercial Aftermarket Products	150.5		134.0		132.8
Military Aftermarket Products	53.9		52.3		57.7
Total Aerospace & Electronics	$	743.5	$	691.4	$	745.7

Engineered Materials
FRP - Recreational Vehicles	$	119.0	$	150.5	$	131.2
FRP - Building Products	92.2		95.2		89.6
FRP - Transportation	32.0		29.7		36.2
Total Engineered Materials	$	243.2	$	275.4	$	257.0

Total Net Sales	$	3,345.5	$	2,786.0	$	2,748.0