Segment Results

9 Months Ended

Sep. 30, 2020

Our segments are reported on the same basis used internally for evaluating performance and for allocating resources. We have four reportable segments: Fluid Handling, Payment & Merchandising Technologies, Aerospace & Electronics and Engineered Materials. Assets of the reportable segments exclude general corporate assets, which principally consist of cash, deferred tax assets, insurance receivables, certain property, plant and equipment, and certain other assets. Corporate consists of corporate office expenses including compensation and benefits for corporate employees, occupancy, depreciation, and other administrative costs.

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. The acquisition of I&S is being integrated into Process Valves and Related Products business. See discussion in Note 2, “Acquisitions” for further details.

Payment & Merchandising Technologies

The Payment & Merchandising Technologies segment consists of CPI and Crane Currency. CPI provides high technology payment acceptance and dispensing products to original equipment manufacturers, and for certain vertical markets, it also provides currency handling and processing systems, complete cash and cashless payment and merchandising solutions, equipment service solutions, and fully connected managed service solutions. Crane Currency is a supplier of banknotes and highly engineered banknote security features.

In the third quarter of 2020, we completed an internal merger to consolidate the Crane Merchandising Systems (“CMS”) business into the vending vertical within the Crane Payment Innovations (“CPI”) business. This internal merger will enable improved coordination and collaboration while delivering increasingly integrated connectivity solutions to our customers.

The acquisition of Cummins-Allison is being integrated into our CPI business. See discussion in Note 2, “Acquisitions” for further details.

Aerospace & Electronics

The 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

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

For the three and nine months ended September 30, 2020 and 2019, operating profit includes acquisition-related and integration charges and restructuring charges, net. See Note 2, “Acquisitions” for discussion of the acquisition-related costs. See Note 14, “Restructuring” for discussion of the restructuring charges, net.



	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in millions)	2020			2019			2020			2019
Net sales
Fluid Handling	$	252.3		$	276.1		$	748.2		$	840.4
Payment & Merchandising Technologies	277.2			248.9			822.1			843.7
Aerospace & Electronics	157.0			197.2			507.3			596.3
Engineered Materials	48.3			50.1			132.9			165.2
Total	$	734.8		$	772.3		$	2,210.5		$	2,445.6
Operating profit (loss)
Fluid Handling	$	25.9		$	35.4		$	74.1		$	106.8
Payment & Merchandising Technologies	40.5			35.1			68.9			124.8
Aerospace & Electronics	24.5			47.2			87.8			141.4
Engineered Materials	9.0			5.9			17.7			22.8
Corporate	(15.0		)	(14.3		)	(44.5		)	(50.0		)
Total	84.9			109.3			204.0			345.8
Interest income	0.6			0.6			1.3			1.9
Interest expense	(14.4		)	(11.7		)	(41.3		)	(35.0		)
Miscellaneous income (expense), net	4.3			(4.5		)	10.6			3.9
Income before income taxes	$	75.4		$	93.7		$	174.6		$	316.6



(in millions)	September 30, 2020		December 31, 2019
Assets
Fluid Handling	$	1,131.3	$	941.6
Payment & Merchandising Technologies	2,206.3		2,303.4
Aerospace & Electronics	614.5		638.1
Engineered Materials	222.4		219.6
Corporate	448.5		321.0
Total	$	4,623.0	$	4,423.7



(in millions)	September 30, 2020		December 31, 2019
Goodwill
Fluid Handling	$	352.4	$	240.9
Payment & Merchandising Technologies	863.7		857.8
Aerospace & Electronics	202.4		202.4
Engineered Materials	171.3		171.3
Total	$	1,589.8	$	1,472.4