Pension And Postretirement Benefits

12 Months Ended

Dec. 31, 2020

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. Additionally, a number of our non-U.S. subsidiaries sponsor defined benefit pension plans that cover approximately 10% of all non-U.S. employees. The benefits are typically based upon years of service and compensation. Most of these plans are funded by company contributions to pension funds, which are 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,	2020		2019		2020		2019
Change in benefit obligation:
Benefit obligation at beginning of year	$	1,168.7	$	1,031.0	$	29.0	$	29.0
Service cost	6.4		5.4		0.3		0.3
Interest cost	26.1		32.7		0.9		1.1
Plan participants’ contributions	0.5		0.5		—		0.1
Amendments	(0.2)		0.5		—		—
Actuarial loss	94.8		131.3		2.0		1.8
Settlements	(9.3)		(0.7)		—		—
Curtailments	(3.5)		—		—		—
Benefits paid	(46.8)		(47.7)		(2.2)		(2.4)
Foreign currency exchange and other	23.6		16.4		—		(0.9)
Administrative expenses paid	(0.5)		(0.7)		—		—
Benefit obligation at end of year	$	1,259.8	$	1,168.7	$	30.0	$	29.0
Change in plan assets:
Fair value of plan assets at beginning of year	$	965.8	$	877.2	$	—	$	—
Actual return on plan assets	70.3		113.8		—		—
Employer contributions	26.1		4.2		2.2		2.3
Plan participants’ contributions	0.5		0.5		—		0.1
Settlements	(9.3)		(0.7)		—		—
Benefits paid	(46.8)		(47.7)		(2.2)		(2.4)
Foreign currency exchange and other	18.5		19.6		—		—
Administrative expenses paid	(1.0)		(1.1)		—		—
Fair value of plan assets at end of year	$	1,024.1	$	965.8	$	—	$	—
Funded status	$	(235.7)	$	(202.9)	$	(30.0)	$	(29.0)

In the U.S., 2020 actuarial losses in the projected benefit obligation were primarily the result of a decrease in the discount rate. Other sources of gains or losses such as plan experience, updated census data and minor adjustments to actuarial assumptions generated combined losses of less than 1% of expected year end obligations. In the Non-U.S. countries, 2020 actuarial losses in the projected benefit obligation were primarily the result of decreases in discount rates. Other sources of gains or losses such as plan experience, updated census data, changes to forecast inflation and minor adjustments to actuarial assumptions generated combined gains of 5% of expected year end obligations.

In the U.S., 2019 actuarial losses in the projected benefit obligation were primarily the result of a decrease in the discount rate. Other sources of gains or losses such as plan experience, updated census data and minor adjustments to actuarial assumptions generated combined losses of less than 1% of expected year end obligations. In the Non-U.S. countries, 2019 actuarial losses in the projected benefit obligation were primarily the result of decreases in discount rates. Other sources of gains or losses such as plan experience, updated census data and minor adjustments to actuarial assumptions generated combined gains of 1% of expected year end obligations.

Amounts recognized on our Consolidated Balance Sheets consist of:

	Pension Benefits				Postretirement Benefits
(in millions) December 31,	2020		2019		2020		2019
Other assets	$	62.6	$	64.8	$	—	$	—
Current liabilities	(1.5)		(1.4)		(2.6)		(2.2)
Accrued pension and postretirement benefits	(296.8)		(266.3)		(27.4)		(26.8)
Funded status	$	(235.7)	$	(202.9)	$	(30.0)	$	(29.0)

Amounts recognized in accumulated other comprehensive loss consist of:

	Pension Benefits				Postretirement Benefits
(in millions) December 31,	2020		2019		2020		2019
Net actuarial loss (gain)	$	532.3	$	466.1	$	(0.9)	$	(2.9)
Prior service credit	(2.8)		(4.5)		(4.1)		(5.2)
Total recognized in accumulated other comprehensive loss	$	529.5	$	461.6	$	(5.0)	$	(8.1)

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,	2020		2019		2020		2019		2020		2019
Projected benefit obligation	$	699.1	$	650.2	$	560.7	$	518.5	$	1,259.8	$	1,168.7
Accumulated benefit obligation	699.1		650.2		548.9		508.8		1,248.0		1,159.0
Fair value of plan assets	482.8		451.5		541.3		514.3		$	1,024.1	965.8

Information for pension plans with an accumulated benefit obligation in excess of plan assets is as follows:

(in millions) December 31,	2020		2019
Projected benefit obligation	$	1,060.4	$	950.1
Accumulated benefit obligation	1,049.5		940.6
Fair value of plan assets	762.5		682.4

Components of net periodic (benefit) cost are as follows:

	Pension Benefits						Postretirement Benefits
(in millions) For the year ended December 31,	2020		2019		2018		2020		2019		2018
Net Periodic (Benefit) Cost:
Service cost	$	6.4	$	5.4	$	5.9	$	0.3	$	0.3	$	0.3
Interest cost	26.1		32.7		30.1		0.9		1.1		1.1
Expected return on plan assets	(57.5)		(53.7)		(65.6)		—		—		—
Amortization of prior service cost	(0.3)		(0.3)		(0.5)		(1.1)		(1.1)		(1.0)
Amortization of net loss (gain)	19.1		15.3		14.2		—		(0.3)		(0.2)
Recognized curtailment (gain) loss	(2.3)		—		0.3		—		—		—
Settlement costs	1.7		—		0.3		—		—		—
Net periodic (benefit) cost	$	(6.8)	$	(0.6)	$	(15.3)	$	0.1	$	—	$	0.2

The weighted average assumptions used to determine benefit obligations are as follows:

	Pension Benefits						Postretirement Benefits
For the year ended December 31,	2020		2019		2018		2020		2019		2018
U.S. Plans:
Discount rate	2.62	%	3.34	%	4.36	%	2.30	%	3.20	%	4.30	%
Rate of compensation increase	N/A		N/A		N/A		N/A		N/A		N/A
Interest credit rate	0.93	%	2.83	%	2.40	%	N/A		N/A		N/A
Non-U.S. Plans:
Discount rate	1.07	%	1.70	%	2.42	%	N/A		N/A		3.30	%
Rate of compensation increase	3.10	%	2.89	%	3.06	%	N/A		N/A		N/A
Interest credit rate	0.29	%	0.22	%	0.84	%	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,	2020		2019		2018		2020		2019		2018
U.S. Plans:
Discount rate	3.34	%	4.36	%	3.75	%	3.20	%	4.10	%	3.50	%
Expected rate of return on plan assets	7.25	%	7.25	%	7.75	%	N/A		N/A		N/A
Rate of compensation increase	N/A		N/A		N/A		N/A		N/A		N/A
Interest credit rate	2.83	%	2.40	%	2.49	%	N/A		N/A		N/A
Non-U.S. Plans:
Discount rate	1.70	%	2.42	%	2.15	%	N/A		N/A		N/A
Expected rate of return on plan assets	5.31	%	5.34	%	6.49	%	N/A		N/A		N/A
Rate of compensation increase	2.89	%	3.06	%	2.80	%	N/A		N/A		N/A
Interest credit rate	0.22	%	0.84	%	0.66	%	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 2020 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, 2020, the actual asset allocation for the U.S. plan was 63% equity securities, 16% fixed income securities, 17% alternative assets and 4% cash and cash equivalents.

For the non-U.S. plans, the 5.31% expected rate of return on assets assumption for 2020 reflected a weighted average of the long-term asset allocation targets for our various non-U.S. plans. As of December 31, 2020, the actual weighted average asset allocation for the non-U.S. plans was 28% equity securities, 34% fixed income securities, 36% alternative assets/other and 2% cash and cash equivalents.

The assumed health care cost trend rates are as follows:

December 31,	2020		2019
Health care cost trend rate assumed for next year	6.50	%	6.75	%
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.

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,		2020		2019
Equity securities	15%-75%	44	%	43	%
Fixed income securities	15%-75%	26	%	26	%
Alternative assets/Other	0%-45%	27	%	29	%
Cash and money market	0%-10%	3	%	2	%

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 4% and 5% of plan assets as of December 31, 2020 and 2019, respectively.

The fair value of our pension plan assets as of December 31, 2020, 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 (a)		Total Fair Value
Cash Equivalents and Money Markets	$	30.1	$	—	$	—	$	—	$	30.1
Common Stocks
Actively Managed U.S. Equities	103.2		—		—		—		103.2
Fixed Income Bonds and Notes	—		0.1		—		—		0.1
Commingled and Mutual Funds
U.S. Equity Funds	117.3		—		—		—		117.3
Non-U.S. Equity Funds	53.2		—		—		178.0		231.2
U.S. Fixed Income, Government and Corporate	76.6		—		—		—		76.6
Registered Investment Company	18.3		—		—		—		18.3
Collective Trust	—		—		22.8		19.2		42.0
Non-U.S. Fixed Income, Government and Corporate	—		—		—		186.5		186.5
International Balanced Funds	—		—		—		1.9		1.9
Alternative Investments
Insurance / Annuity Contract(s)	—		14.2		—		—		14.2
Hedge Funds and LDI	—		—		—		153.8		153.8
International Property Funds	—		—		—		48.9		48.9
Total Fair Value	$	398.7	$	14.3	$	22.8	$	588.3	$	1,024.1

(a)  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 2020, 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, 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(a)		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

(a)  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 following table sets forth a summary of pension plan assets valued using NAV or its equivalent as of December 31, 2020 and December 31, 2019:

	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	30 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 managed 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, etc.)
(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 $20.7 million to our defined benefit pension plans during 2021. 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
2021	$	51.2	$	2.6
2022	51.8		2.4
2023	53.2		2.5
2024	54.3		2.4
2025	56.6		2.1
2026 to 2030	285.5		9.2
Total payments	$	552.6	$	21.2

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. There were no pre-tax settlement gains recorded in 2020. We recorded a pre-tax settlement gain of $0.1 million and $0.4 million in 2019 and 2018, respectively. Accrued SERP benefits were $3.9 million and $3.4 million as of December 31, 2020 and 2019, respectively. Employer contributions made to the SERP were $0.2 million, $2.2 million and $0.2 million in 2020, 2019 and 2018, respectively.

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 $11.8 million, $11.0 million and $9.9 million in 2020, 2019 and 2018, 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 $14.5 million, $13.4 million and $12.5 million in 2020, 2019 and 2018, respectively.