Segment Information

12 Months Ended

Dec. 31, 2020

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.

The acquisition of I&S has been 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 Crane Payment Innovations (“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 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 has been integrated into our CPI business. See discussion in Note 2, “Acquisitions” for further details.

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, 2020, operating profit included acquisition-related and integration charges and restructuring charges, net. For the year ended December 31, 2019, operating profit included an asbestos provision, net; an environmental provision, net; acquisition-related and integration charges and restructuring charges, net. For the year ended December 31, 2018, operating profit included acquisition-related and integration charges and restructuring charges, net. See Note 2, “Acquisitions” for discussion on the acquisition-related costs. See Note 15, “Restructuring Charges, Net” for discussion of the restructuring charges, net. See Note 12, “Commitments and Contingencies” for discussion of the asbestos provision, net and environmental provision, net.

Financial information by reportable segment is set forth below:


(in millions) December 31,	2020		2019		2018
Fluid Handling
Net sales	$	1,005.8	$	1,117.4	$	1,101.8
Operating profit	97.7		131.7		118.8
Assets	1,106.1		941.6		878.2
Goodwill	360.0		240.9		240.8
Capital expenditures	13.7		23.4		19.9
Depreciation and amortization	21.6		14.2		15.2
Payment & Merchandising Technologies
Net sales	$	1,104.8	$	1,158.3	$	1,257.0
Operating profit	100.6		177.3		186.0
Assets	2,215.3		2,303.4		2,074.4
Goodwill	875.2		857.8		789.2
Capital expenditures	9.3		20.6		57.5
Depreciation and amortization	85.9		77.1		82.4
Aerospace & Electronics
Net sales	$	650.7	$	798.8	$	743.5
Operating profit	100.7		189.4		164.2
Assets	593.9		638.1		603.9
Goodwill	202.5		202.4		202.4
Capital expenditures	9.8		20.0		20.6
Depreciation and amortization	14.2		13.5		13.0
Engineered Materials
Net sales	$	175.6	$	208.6	$	243.2
Operating profit	22.7		26.8		37.8
Assets	217.3		219.6		222.1
Goodwill	171.3		171.3		171.3
Capital expenditures	1.2		4.4		10.3
Depreciation and amortization	3.7		5.6		6.4
TOTAL NET SALES	$	2,936.9	$	3,283.1	$	3,345.5
Operating profit (loss)
Reporting segments	$	321.7	$	525.2	$	506.8
Corporate expense — before asbestos and environmental provisions	(58.8)		(66.9)		(65.5)
Corporate expense — asbestos provision, net	—		(229.0)		—
Corporate expense — environmental provision, net	—		(18.9)		—
TOTAL OPERATING PROFIT	$	262.9	$	210.4	$	441.3
Interest income	2.0		2.7		2.3
Interest expense	(55.3)		(46.8)		(50.9)
Miscellaneous income, net	14.9		4.4		18.7
INCOME BEFORE INCOME TAXES	$	224.5	$	170.7	$	411.4
Assets
Reporting segments	$	4,132.6	$	4,102.7	$	3,778.6
Corporate	456.3		321.0		264.1
TOTAL ASSETS	$	4,588.9	$	4,423.7	$	4,042.7
TOTAL GOODWILL (Reporting segments)	$	1,609.0	$	1,472.4	$	1,403.7
Capital expenditures
Reporting segments	$	34.0	$	68.4	$	108.3
Corporate	0.1		0.4		0.5
TOTAL CAPITAL EXPENDITURES	$	34.1	$	68.8	$	108.8
Depreciation and amortization
Reporting segments	$	125.4	$	110.4	$	117.0
Corporate	2.1		3.1		3.0
TOTAL DEPRECIATION AND AMORTIZATION	$	127.5	$	113.5	$	120.0

Information by geographic region:


(in millions) December 31,	2020		2019		2018
Net sales (a)
United States	$	1,862.7	$	2,111.3	$	2,107.2
Canada	162.9		176.8		172.3
United Kingdom	270.9		393.6		397.5
Continental Europe	480.1		410.1		484.2
Other international	160.3		191.3		184.3
TOTAL NET SALES	$	2,936.9	$	3,283.1	$	3,345.5


(in millions) December 31,	2020		2019		2018
Long-lived assets (a) (b)
United States	$	339.2	$	364.2	$	304.6
Canada	15.8		17.6		7.8
Europe	266.6		259.6		249.3
Other international	60.7		61.7		32.5
Corporate	22.4		25.8		4.9
TOTAL LONG-LIVED ASSETS	$	704.7	$	728.9	$	599.1


(a)			Net sales and Long-lived assets, net by geographic region are based on the location of the business unit.
(b)			Long-lived assets consist of property, plant and equipment, net in 2020, 2019 and 2018 and right-of-use assets, net in 2020 and 2019. There were no right-of-use assets in 2018 due to the adoption of ASC 842 on January 1, 2019.