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Exit and Disposal activities
 9 Months Ended
Sep. 30, 2017
Restructuring and Related Activities [Abstract]  
Exit and Disposal Activities Exit and Disposal Activities

The Company has undertaken operational restructuring and other cost reduction actions to streamline processes and manage costs throughout various departments within the Company. The Company implemented cost reduction plans, which resulted in exit, disposal, and employee termination benefit costs, primarily resulting from planned reductions in workforce, facility consolidations and relocations, and lease termination costs, as further discussed below by operating segment.

Interconnect Technologies

During 2017, the Company initiated plans to relocate certain of its aerospace manufacturing operations in Littleborough, United Kingdom to an existing manufacturing operation in Nogales, Mexico. During the third quarter and nine months ended September 30, 2017, exit and disposal expense totaled $0.3 million and $1.6 million, respectively. Cumulative exit and disposal costs recognized is $1.6 million through September 30, 2017, with total costs expected to approximate $2.2 million. The remaining costs are expected to be incurred principally through the fourth quarter of 2017.

As previously announced, the Company is incurring costs related to relocate certain of our medical manufacturing operations in Shenzhen, China to a new manufacturing operation in Dongguan, China. During the third quarter and nine months ended September 30, 2017, employee termination benefit costs associated with this plan totaled $2.5 million and $5.1 million, respectively. Cumulative exit and disposal costs recognized is $12.7 million through September 30, 2017, with total costs expected to approximate $14.6 million. The remaining costs are expected to be incurred principally through the second half of 2018. Other associated costs are not expected to be significant.

During the third quarter of 2017, the Company entered into a letter of undertaking with the Chinese government, whereby the Company designated $10.1 million in cash specifically for the payment of employee termination benefits associated with the Chinese medical business action discussed above. Cash payments began in August 2017 out of these designated funds, and will continue through the first half of 2018. The designated cash balance as of September 30, 2017, totaled $8.2 million.

Fluid Technologies

During 2017, the Company initiated plans to restructure its global footprint. These plans involve exiting manufacturing operations in Brazil and Mexico, exiting the systems sales business in Germany and relocating the manufacturing operations currently in Angola, Indiana to its existing Bournemouth, United Kingdom manufacturing operations. During both the third quarter and nine months ended September 30, 2017, exit and disposal expense totaled $7.5 million, primarily reflecting employee termination benefit costs and accelerated depreciation. Total costs are expected to approximate $11.5 million, with the remaining costs expected to be incurred principally through the fourth quarter of 2017.

As previously announced, the Company is incurring costs related to the relocation of CFT's administrative functions and facilities within the U.S. During the third quarter and the nine months ended September 30, 2017, exit and disposal expense totaled less than $0.1 million and $1.0 million, respectively, primarily reflecting relocation and facility closure costs. Cumulative exit and disposal costs recognized is $5.1 million through September 30, 2017, with total expected costs to approximate $5.2 million.

Brake & Friction

On February 9, 2017, the Company announced that it would exit its manufacturing operations in Tulsa, Oklahoma and relocate the majority of those operations to its existing manufacturing facility in Medina, Ohio. This action is expected to take approximately 18 to 21 months to complete. Total associated exit and disposal costs are expected to be between $17.5 million to $21.0 million, including:

•
Non-cash accelerated depreciation of long-lived assets at the Oklahoma facility, which is primarily property, plant and equipment that will not be transferred to Ohio (between $5.0 million to $6.5 million expected to be recognized ratably through the first quarter of 2019),
•
Costs to relocate and install equipment (between $5.0 million to $6.0 million, expected to be incurred primarily in the second half of 2018),
•
Employee retention and termination benefits (approximately $2.5 million, expected to be incurred ratably through the second half of 2018),
•
Other associated costs related to the closure of the facility and internal administration of the project (between $5.0 million to $6.0 million, expected to be incurred primarily in the second half of 2018).

During the third quarter and the nine months ended September 30, 2017, exit and disposal expense totaled $1.0 million and $3.0 million, respectively, primarily related to employee termination benefits and accelerated depreciation.

Consolidated Summary

The Company's exit and disposal expense by activity is as follows:
(in millions)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Employee severance and benefit arrangements
 
$
9.9

 
$
0.3

    
$
15.3

 
$
2.7

Relocation costs
 
0.2

 
1.0

 
1.1

 
2.4

Other restructuring costs
 
1.5

 
0.1

 
3.4

 
0.4

Total exit and disposal costs
 
$
11.6

 
$
1.4

 
$
19.8

 
$
5.5


The Company's exit and disposal activities expense by segment is as follows:
(in millions)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Carlisle Interconnect Technologies
 
$
2.7

 
$
—

 
$
7.5

 
$
—

Carlisle Fluid Technologies
 
7.5

 
0.6

 
8.5

 
3.6

Carlisle Brake & Friction
 
1.0

 
—

 
3.0

 
—

Corporate
 
0.4

 
0.8

 
0.8

 
1.9

Total exit and disposal costs
 
$
11.6

 
$
1.4

 
$
19.8

 
$
5.5


The Company's exit and disposal activities expense by financial statement line item is as follows:
(in millions)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
Cost of goods sold
 
$
3.1

 
$
—

 
$
6.9

 
$
—

Selling and administrative expenses
 
8.5

 
1.3

 
12.8

 
5.2

Research and development expenses
 
—

 
—

 
0.1

 
—

Other income, net
 
—

 
0.1

 
—

 
0.3

Total exit and disposal costs
 
$
11.6

 
$
1.4

 
$
19.8

 
$
5.5


The Company's change in exit and disposal activities liability is as follows:
(in millions)
 
Carlisle Interconnect Technologies
 
Carlisle Fluid Technologies
 
Carlisle Brake & Friction
 
Corporate
 
Total
Balance at January 1, 2017
 
$
7.6

 
$
0.7

 
$
—

 
$
0.7

 
$
9.0

Charges
 
7.5

 
8.5

 
3.0

 
0.8

 
19.8

Cash payments
 
(5.4
)
 
(1.5
)
 
(1.0
)
 
(1.4
)
 
(9.3
)
Other adjustments and non-cash settlements
 
—

 
(0.1
)
 
(1.3
)
 
—

 
(1.4
)
Balance at September 30, 2017
 
$
9.7

 
$
7.6

 
$
0.7

 
$
0.1

 
$
18.1



The liability of $18.1 million primarily relates to employee severance and benefit arrangements, and is included in accrued expenses in the Consolidated Balance Sheet.