Segment Information

12 Months Ended

Dec. 31, 2019

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 Pumps and Systems. 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. Pumps and Systems 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. Crane Currency is a supplier of banknotes and highly engineered banknote security feature. CMS provides merchandising equipment, including include food, snack and beverage vending machines and vending machine software and online solutions. The recent acquisition of Cummins-Allison will be integrated into our CPI business.

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, 2019, operating profit includes an asbestos provision, an environmental provision, acquisition-related and integration charges and restructuring charges. 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. See Note 2, “Acquisitions and Divestitures” for discussion on the acquisition-related costs. See Note 15, “Restructuring” for discussion of the restructuring charges. See Note 12, “Commitments and Contingencies” for discussion of the asbestos and environmental provisions.

Financial information by reportable segment is set forth below:



(in millions) December 31,	2019			2018			2017
Fluid Handling
Net sales	$	1,117.4		$	1,101.8		$	1,042.5
Operating profit	131.7			118.8			101.7
Assets	941.6			878.2			941.6
Goodwill	240.9			240.8			245.4
Capital expenditures	23.4			19.9			14.7
Depreciation and amortization	14.2			15.2			16.2
Payment & Merchandising Technologies
Net sales	$	1,158.3		$	1,257.0		$	776.7
Operating profit	177.3			186.0			145.9
Assets	2,303.4			2,074.4			1,215.7
Goodwill	857.8			789.2			587.7
Capital expenditures	20.6			57.5			14.2
Depreciation and amortization	77.1			82.4			34.2
Aerospace & Electronics
Net sales	$	798.8		$	743.5		$	691.4
Operating profit	189.4			164.2			160.3
Assets	638.1			603.9			573.0
Goodwill	202.4			202.4			202.4
Capital expenditures	20.0			20.6			16.7
Depreciation and amortization	13.5			13.0			14.0
Engineered Materials
Net sales	$	208.6		$	243.2		$	275.4
Operating profit	26.8			37.8			49.4
Assets	219.6			222.1			220.8
Goodwill	171.3			171.3			171.4
Capital expenditures	4.4			10.3			3.1
Depreciation and amortization	5.6			6.4			6.7
TOTAL NET SALES	$	3,283.1		$	3,345.5		$	2,786.0
Operating profit (loss)
Reporting segments	$	525.2		$	506.8		$	457.3
Corporate expense — before asbestos and environmental provisions	(66.9		)	(65.5		)	(68.9		)
Corporate expense — asbestos provision, net	(229.0		)	—			—
Corporate expense — environmental provision, net	(18.9		)	—			—
TOTAL OPERATING PROFIT	$	210.4		$	441.3		$	388.4
Interest income	2.7			2.3			2.5
Interest expense	(46.8		)	(50.9		)	(36.1		)
Miscellaneous income, net	4.4			18.7			12.7
INCOME BEFORE INCOME TAXES	$	170.7		$	411.4		$	367.5
Assets
Reporting segments	$	4,102.7		$	3,778.6		$	2,951.1
Corporate	321.0			264.1			642.4
TOTAL ASSETS	$	4,423.7		$	4,042.7		$	3,593.5
TOTAL GOODWILL (Reporting segments)	$	1,472.4		$	1,403.7		$	1,206.9
Capital expenditures
Reporting segments	$	68.4		$	108.3		$	48.7
Corporate	0.4			0.5			0.3
TOTAL CAPITAL EXPENDITURES	$	68.8		$	108.8		$	49.0
Depreciation and amortization
Reporting segments	$	110.4		$	117.0		$	71.1
Corporate	3.1			3.0			1.6
TOTAL DEPRECIATION AND AMORTIZATION	$	113.5		$	120.0		$	72.7

Information by geographic region:



(in millions) December 31,	2019		2018		2017
Net sales^(a)
United States	$	2,111.3	$	2,107.2	$	1,767.3
Canada	176.8		172.3		169.0
United Kingdom	393.6		397.5		388.2
Continental Europe	410.1		484.2		268.6
Other international	191.3		184.3		192.9
TOTAL NET SALES	$	3,283.1	$	3,345.5	$	2,786.0
Assets ^(a)
United States	$	2,139.7	$	1,866.5	$	1,645.3
Canada	211.8		206.2		170.0
Europe	963.6		897.7		702.9
Other international	787.6		808.2		432.9
Corporate	321.0		264.1		642.4
TOTAL ASSETS	$	4,423.7	$	4,042.7	$	3,593.5
Tangible Assets ^(a)
United States	$	635.9	$	442.3	$	645.8
Canada	159.3		156.3		115.8
Europe	698.7		646.8		436.6
Other international	631.3		648.2		269.2
Corporate	321.0		264.1		642.4
TOTAL TANGIBLE ASSETS	$	2,446.2	$	2,157.7	$	2,109.8

(a) Net sales and assets by geographic region are based on the location of the business unit.