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Pension And Postretirement Benefits
 12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Pension And Postretirement Benefits Pension and Postretirement Benefits
Pension Plan
In the United States, we sponsor a defined benefit pension plan that covers approximately 18% of all U.S. employees. Effective January 1, 2013, pension eligible non-union employees no longer earn future benefits in the domestic defined benefit pension plan. The benefits are based on years of service and compensation on a final average pay basis, except for certain hourly employees where benefits are fixed per year of service. Charges to expense are based upon costs computed by an independent actuary. Contributions are intended to provide for future benefits earned to date. As of December 31, 2018, the Crane Currency pension plan was merged into our U.S. defined benefit pension plan. Benefit accruals for the Crane Currency employees ended July 1, 2018. Additionally, a number of our non-U.S. subsidiaries sponsor defined benefit pension plans that cover approximately 8% of all non-U.S. employees. The benefits are typically based upon years of service and compensation. These plans are funded by company contributions to a trust fund, which is held for the sole benefit of plan participants and beneficiaries.
Postretirement Plans
Postretirement health care and life insurance benefits are provided for certain employees hired before January 1, 1990, who meet minimum age and service requirements. As a result of the acquisition of Crane Currency, we also have postretirement medical and Medicare supplement that cover substantially all former full-time U.S. employees of Crane Currency.
A summary of the projected benefit obligations, fair value of plan assets and funded status is as follows:
 
 
Pension Benefits
 
Postretirement Benefits
(in millions) December 31,
 
2019
 
2018
 
2019
 
2018
Change in benefit obligation:
 
 
 
 
 
 
 
 
Benefit obligation at beginning of year
 
$
1,031.0

 
$
1,074.7

 
$
29.0

 
$
7.9

Service cost
 
5.4

 
5.9

 
0.3

 
0.3

Interest cost
 
32.7

 
30.1

 
1.1

 
1.1

Plan participants’ contributions
 
0.5

 
0.6

 
0.1

 
0.3

Amendments
 
0.5

 
4.4

 
—

 
(7.3
)
Actuarial loss (gain)
 
131.3

 
(59.5
)
 
1.8

 
(3.0
)
Settlements
 
(0.7
)
 
(1.9
)
 
—

 
—

Benefits paid
 
(47.7
)
 
(48.1
)
 
(2.4
)
 
(2.6
)
Foreign currency exchange and other
 
16.4

 
(23.3
)
 
(0.9
)
 
—

Acquisitions/curtailments/divestitures
 
—

 
48.4

 
—

 
32.3

Administrative expenses paid
 
(0.7
)
 
(0.3
)
 
—

 
—

Benefit obligation at end of year
 
$
1,168.7

 
$
1,031.0

 
$
29.0

 
$
29.0

Change in plan assets:
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
 
$
877.2

 
$
908.1

 
$
—

 
$
—

Actual return on plan assets
 
113.8

 
(47.6
)
 
—

 
—

Foreign currency exchange and other
 
19.6

 
(25.4
)
 
—

 
—

Employer contributions
 
4.2

 
57.5

 
2.3

 
1.4

Administrative expenses paid
 
(1.1
)
 
(0.7
)
 
—

 
—

Acquisitions
 
—

 
34.9

 
—

 
—

Plan participants’ contributions
 
0.5

 
0.6

 
0.1

 
0.3

Settlements/divestitures
 
(0.7
)
 
(2.1
)
 
—

 
—

Benefits paid
 
(47.7
)
 
(48.1
)
 
(2.4
)
 
(1.7
)
Fair value of plan assets at end of year
 
$
965.8

 
$
877.2

 
$
—

 
$
—

Funded status
 
$
(202.9
)
 
$
(153.8
)
 
$
(29.0
)
 
$
(29.0
)

 
Amounts recognized on our Consolidated Balance Sheets consist of:
 
 
Pension Benefits
 
Postretirement Benefits
(in millions) December 31,
 
2019
 
2018
 
2019
 
2018
Other assets
 
$
64.8

 
$
60.7

 
$
—

 
$
—

Current liabilities
 
(1.4
)
 
(1.3
)
 
(2.2
)
 
(2.6
)
Accrued pension and postretirement benefits
 
(266.3
)
 
(213.2
)
 
(26.8
)
 
(26.4
)
Funded status
 
$
(202.9
)
 
$
(153.8
)
 
$
(29.0
)
 
$
(29.0
)

Amounts recognized in accumulated other comprehensive loss consist of:
 
 
Pension Benefits
 
Postretirement Benefits
(in millions) December 31,
 
2019
 
2018
 
2019
 
2018
Net actuarial loss (gain)
 
$
466.1

 
$
404.8

 
$
(2.9
)
 
$
(4.2
)
Prior service credit
 
(4.5
)
 
(5.5
)
 
(5.2
)
 
(6.3
)
Total recognized in accumulated other comprehensive loss
 
$
461.6

 
$
399.3

 
$
(8.1
)
 
$
(10.5
)

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the U.S. and Non-U.S. plans, are as follows:
 
 
Pension Obligations/Assets
 
 
U.S.
 
Non-U.S.
 
Total
(in millions) December 31,
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Projected benefit obligation
 
$
650.2

 
$
580.6

 
$
518.5

 
$
450.4

 
$
1,168.7

 
$
1,031.0

Accumulated benefit obligation
 
650.2

 
580.6

 
508.8

 
441.7

 
1,159.0

 
1,022.3

Fair value of plan assets
 
451.5

 
417.5

 
514.3

 
459.7

 
965.8

 
877.2


Information for pension plans with an accumulated benefit obligation in excess of plan assets is as follows:
(in millions) December 31,
 
2019
 
2018
Projected benefit obligation
 
$
950.1

 
$
695.2

Accumulated benefit obligation
 
940.6

 
687.1

Fair value of plan assets
 
682.4

 
480.7



Components of net periodic (benefit) cost are as follows:
 
 
Pension Benefits
 
Postretirement Benefits
(in millions) For the year ended December 31,
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Net Periodic (Benefit) Cost:
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
5.4

 
$
5.9

 
$
5.4

 
$
0.3

 
$
0.3

 
$
—

Interest cost
 
32.7

 
30.1

 
29.5

 
1.1

 
1.1

 
0.2

Expected return on plan assets
 
(53.7
)
 
(65.6
)
 
(57.0
)
 
—

 
—

 
—

Amortization of prior service cost
 
(0.3
)
 
(0.5
)
 
(0.6
)
 
(1.1
)
 
(1.0
)
 
(0.2
)
Amortization of net loss (gain)
 
15.3

 
14.2

 
14.3

 
(0.3
)
 
(0.2
)
 
(0.3
)
Recognized curtailment loss
 
—

 
0.3

 
(0.3
)
 
—

 
—

 
—

Settlement costs
 
—

 
0.3

 
0.5

 
—

 
—

 
—

Net periodic (benefit) cost
 
$
(0.6
)
 
$
(15.3
)
 
$
(8.2
)
 
$
—

 
$
0.2

 
$
(0.3
)

The estimated net loss and prior service cost for the defined benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic (benefit) cost over the next fiscal year are $19.2 million and $0.3 million, respectively. The estimated net loss and prior service cost for the postretirement plans that will be amortized from accumulated other comprehensive loss into net periodic (benefit) cost over the next fiscal year are $0.0 million and $1.1 million, respectively.
The weighted average assumptions used to determine benefit obligations are as follows:
 
 
Pension Benefits
 
Postretirement Benefits
For the year ended December 31,
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
U.S. Plans:
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
3.34
%
 
4.36
%
 
3.75
%
 
3.20
%
 
4.30
%
 
3.90
%
Rate of compensation increase
 
N/A

 
N/A

 
N/A

 
N/A

 
N/A

 
N/A

Non-U.S. Plans:
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
1.70
%
 
2.42
%
 
2.15
%
 
N/A

 
3.30
%
 
3.30
%
Rate of compensation increase
 
2.89
%
 
3.06
%
 
2.80
%
 
N/A

 
N/A

 
N/A


The weighted-average assumptions used to determine net periodic benefit cost are as follows:
 
 
Pension Benefits
 
Postretirement Benefits
For the year ended December 31,
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
U.S. Plans:
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
4.36
%
 
3.75
%
 
4.29
%
 
4.10
%
 
3.50
%
 
3.30
%
Expected rate of return on plan assets
 
7.25
%
 
7.75
%
 
7.75
%
 
N/A

 
N/A

 
N/A

Rate of compensation increase
 
N/A

 
N/A

 
N/A

 
N/A

 
N/A

 
N/A

Non-U.S. Plans:
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
2.42
%
 
2.15
%
 
2.29
%
 
N/A

 
N/A

 
N/A

Expected rate of return on plan assets
 
5.34
%
 
6.49
%
 
6.45
%
 
N/A

 
N/A

 
N/A

Rate of compensation increase
 
3.06
%
 
2.80
%
 
2.85
%
 
N/A

 
N/A

 
N/A


 
The long-term expected rate of return on plan assets assumptions were determined with input from independent investment consultants and plan actuaries, utilizing asset pricing models and considering historical returns. The discount rates used by us for valuing pension liabilities are based on a review of high quality corporate bond yields with maturities approximating the remaining life of the projected benefit obligations.
In the U.S. plan, the 7.25% expected rate of return on assets assumption for 2019 reflected a long-term target comprised of an asset allocation range of 35%-75% equity securities, 15%-35% fixed income securities, 10%-35% alternative assets and 0%-10% cash and cash equivalents. As of December 31, 2019, the actual asset allocation for the U.S. plan was 62% equity securities, 17% fixed income securities, 20% alternative assets and 1% cash and cash equivalents.
For the non-U.S. plans, the 5.34% expected rate of return on assets assumption for 2019 reflected a weighted average of the long-term asset allocation targets for our various non-U.S. plans. As of December 31, 2019, the actual weighted average asset allocation for the non-U.S. plans was 26% equity securities, 34% fixed income securities, 38% alternative assets/other and 2% cash and cash equivalents.
The assumed health care cost trend rates are as follows:
December 31,
 
2019

 
2018

Health care cost trend rate assumed for next year
 
6.75
%
 
7.00
%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)
 
4.50
%
 
4.50
%
Year that the rate reaches the ultimate trend rate
 
2029

 
2029

Assumed health care cost trend rates have a significant effect on the amounts reported for our health care plans.
A one-percentage-point change in assumed health care cost trend rates would have the following effects:
(in millions)
 
One
Percentage
Point
Increase

 
One
Percentage
Point
(Decrease)

Effect on total of service and interest cost components
 
$
—

 
$
—

Effect on postretirement benefit obligation
 
$
0.6

 
$
(0.5
)

Plan Assets
Our pension plan target allocations and weighted-average asset allocations by asset category are as follows:
 
 
 Target Allocation
 
Actual Allocation
Asset Category December 31,
 

 
2019

 
2018

Equity securities
 
15%-75% 
 
43
%
 
39
%
Fixed income securities
 
15%-75% 
 
26
%
 
24
%
Alternative assets/Other
 
0%-45% 
 
29
%
 
32
%
Cash and money market
 
0%-10% 
 
2
%
 
5
%

Independent investment consultants are retained to assist in executing the plans’ investment strategies. A number of factors are evaluated in determining if an investment strategy will be implemented in our pension trusts. These factors include, but are not limited to, investment style, investment risk, investment manager performance and costs. We periodically review investment managers and their performance in relation to our plans’ investment objectives.
The primary investment objective of our various pension trusts is to maximize the value of plan assets, focusing on capital preservation, current income and long-term growth of capital and income. The plans’ assets are typically invested in a broad range of equity securities, fixed income securities, alternative assets and cash instruments.
Equity securities include investments in large, mid, and small-capitalization companies located in both developed countries and emerging markets around the world. Fixed income securities include government bonds of various countries, corporate bonds that are primarily investment-grade, and mortgage-backed securities. Alternative assets include investments in real estate and hedge funds employing a wide variety of strategies. Equity securities include Crane Co. common stock, which represents 5% of plan assets as of December 31, 2019 and 2018.
The fair value of our pension plan assets as of December 31, 2019, by asset category, are as follows:
(in millions)
 
Active
Markets
for
Identical
Assets
Level 1
 
Other
Observable
Inputs
Level 2
 
Unobservable
Inputs
Level 3
 
Net Asset Value ("NAV") Practical Expedient*
 
Total
Fair Value
Cash Equivalents and Money Markets
 
$
14.7

 
$
—

 
$
—

 
$
—

 
$
14.7

Common Stocks
 
 
 
 
 
 
 
 
 
 
Actively Managed U.S. Equities
 
130.6

 
—

 
—

 
—

 
130.6

Fixed Income Bonds and Notes
 
—

 
0.1

 
—

 
—

 
0.1

Commingled and Mutual Funds
 
 
 
 
 
 
 
 
 
 
U.S. Equity Funds
 
77.9

 
—

 
—

 
—

 
77.9

Non-U.S. Equity Funds
 
44.8

 
—

 
—

 
158.6

 
203.4

U.S. Fixed Income, Government and Corporate
 
75.7

 
—

 
—

 
—

 
75.7

Registered Investment Company
 
30.2

 
—

 
—

 
—

 
30.2

Collective Trust
 
—

 
—

 
22.6

 
21.2

 
43.8

Non-U.S. Fixed Income, Government and Corporate
 
—

 
—

 
—

 
176.1

 
176.1

International Balanced Funds
 
—

 
—

 
—

 
1.8

 
1.8

Alternative Investments
 
 
 
 
 
 
 
 
 
 
Insurance / Annuity Contract(s)
 
—

 
15.1

 
—

 
—

 
15.1

Hedge Funds and LDI
 
—

 
—

 
—

 
147.3

 
147.3

International Property Funds
 
—

 
—

 
—

 
49.1

 
49.1

Total Fair Value
 
$
373.9

 
$
15.2

 
$
22.6

 
$
554.1

 
$
965.8

* Investments are measured at fair value using the net asset value per share practical expedient, and therefore, are not classified in the fair value hierarchy.
In 2019, the pension plan's asset classified as Level 3 constitutes an insurance contract valued annually on an actuarial basis.

The fair value of our pension plan assets as of December 31, 2018, by asset category, are as follows:
(in millions)
 
Active
Markets
for
Identical
Assets
Level 1
 
Other
Observable
Inputs
Level 2
 
Unobservable
Inputs
Level 3
 
Net Asset Value ("NAV") Practical Expedient*
 
Total
Fair Value
Cash Equivalents and Money Markets
 
$
72.0

 
$
—

 
$
—

 
$
—

 
$
72.0

Common Stocks
 
 
 
 
 
 
 
 
 
 
Actively Managed U.S. Equities
 
110.7

 
—

 
—

 
—

 
110.7

Fixed Income Bonds and Notes
 
—

 
0.1

 
—

 
—

 
0.1

Commingled and Mutual Funds
 
 
 
 
 
 
 
 
 
 
U.S. Equity Funds
 
49.4

 
—

 
—

 
—

 
49.4

Non-U.S. Equity Funds
 
14.4

 
—

 
—

 
140.8

 
155.2

U.S. Fixed Income, Government and Corporate
 
59.5

 
—

 
—

 
—

 
59.5

Registered Investment Company
 
16.8

 
—

 
—

 
—

 
16.8

Collective Trust
 
—

 
—

 
20.8

 
19.0

 
39.8

Non-U.S. Fixed Income, Government and Corporate
 
—

 
—

 
—

 
155.5

 
155.5

International Balanced Funds
 
—

 
—

 
—

 
1.5

 
1.5

Alternative Investments
 
 
 
 
 
 
 
 
 
 
Insurance / Annuity Contract(s)
 
—

 
13.4

 
—

 
—

 
13.4

Hedge Funds and LDI
 
—

 
—

 
—

 
157.0

 
157.0

International Property Funds
 
—

 
—

 
—

 
46.3

 
46.3

Total Fair Value
 
$
322.8

 
$
13.5

 
$
20.8

 
$
520.1

 
$
877.2

The table above has been revised to correct our previously reported classification of $165.2 million of investments in commingled and mutual funds from NAV to Level 1 and $9.3 million of investments in annuity contracts from NAV to Level 2 as of December 31, 2018.
* Investments are measured at fair value using the net asset value per share practical expedient, and therefore, are not classified in the fair value hierarchy.
In 2018, the pension plan's asset classified as Level 3 constitutes an insurance contract valued annually on an actuarial basis.
The following table sets forth a summary of pension plan assets valued using NAV or its equivalent as of December 31, 2019 and December 31, 2018:
 
 
Redemption
Frequency
 
Unfunded
Commitment
 
Other
Redemption
Restrictions
 
Redemption Notice Period
Non-U.S. Equity Funds (a)
 
Immediate
 
None
 
None
 
None
Non-U.S. Fixed Income, Government and Corporate (b)
 
Immediate
 
None
 
None
 
None
International Balanced Funds (c)
 
Immediate
 
None
 
None
 
None
Collective Trust Fund (d)
 
Immediate
 
None
 
None
 
None
Hedge Funds (e)
 
Quarterly
 
None
 
None
 
65 days written
Hedge Funds (e)
 
Quarterly
 
None
 
None
 
30 days written
Hedge Funds (e)
 
Quarterly
 
None
 
None
 
60 days written
International Property Funds (f)
 
Immediate
 
None
 
None
 
None
Hedge Funds and LDI (g)
 
Immediate
 
None
 
None
 
None

(a)
These funds invest in corporate equity securities outside the United States.
(b)
These funds invest in corporate and government fixed income securities outside the United States.
(c)
These funds invest in a blend of equities, fixed income, cash and property outside the United States.
(d)
These funds are manged in a collective trust under Australia's Superannuation plan structure
(e)
These funds are direct investment alternative investments/hedge funds that deploy a multi-strategy approach to investing (e.g. long/short/event-driven, credit).
(f)
These funds invest in real property outside the United States.
(g)
These funds invest in strategies that seek to add diversification to a portfolio with uncorrelated risk profiles or are designed to track the duration of all or part of the underlying liability.

Cash Flows  
We expect, based on current actuarial calculations, to contribute cash of approximately $21.4 million to our defined benefit pension plans during 2020. Cash contributions in subsequent years will depend on a number of factors including the investment performance of plan assets.
Estimated Future Benefit Payments  
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
Estimated future payments (in millions)
Pension
Benefits
 
Postretirement Benefits
2020
$
49.6

 
$
2.3

2021
50.2

 
2.3

2022
52.0

 
2.3

2023
53.7

 
2.2

2024
54.3

 
2.1

2025 to 2029
291.7

 
9.5

Total payments
$
551.5

 
$
20.7


Supplemental Executive Retirement Plan
We also have a non-qualified Supplemental Executive Retirement Plan (“SERP”). The SERP, which is not funded, is intended to provide retirement benefits for certain executive officers who were formerly employees of Crane Currency. Benefit amounts are based upon years of service and compensation of the participating employees. We recorded a pre-tax settlement gain related to the SERP of $0.1 million in 2019. Accrued SERP benefits were $3.4 million as of December 31, 2019. Employer contributions made to the SERP were $2.2 million in 2019.
Defined Contribution Plans
We sponsor savings and investment plans that are available to our eligible employees including employees of our subsidiaries. We made contributions to the plans of $11.0 million, $9.9 million and $8.5 million in 2019, 2018 and 2017, respectively.
In addition to participant deferral contributions and company matching contributions on those deferrals, we provide a 3% non-matching contribution to eligible participants. We made non-matching contributions to these plans of $13.4 million, $12.5 million and $11.0 million in 2019, 2018 and 2017, respectively.