Exit and Disposal and Other Restructuring Activities

6 Months Ended

Jun. 30, 2021

Restructuring and Related Activities [Abstract]

Exit and Disposal and Other Restructuring Activities

Exit and Disposal and Other Restructuring ActivitiesThe Company has undertaken operational restructuring and other cost reduction actions to streamline processes and manage costs throughout various departments. These actions resulted in exit, disposal and employee termination benefit costs, primarily resulting from planned reductions in workforce, facility consolidation and relocation, and lease termination costs. The primary actions are discussed below by operating segment.

CIT

During the third quarter of 2020, the Company initiated plans to exit its manufacturing operations in Kent, Washington, as a result of market declines from the coronavirus pandemic ("COVID-19 pandemic"). Select operations are being relocated to existing facilities primarily in North America. The project is estimated to take a remaining 4 to 8 months to complete. During the three and six months ended June 30, 2021, exit and disposal costs totaled $4.5 million and $5.1 million, respectively, primarily for employee termination benefit costs. Total exit and disposal costs are expected to approximate $14.2 million, with approximately $2.5 million costs remaining to be incurred, primarily in 2021.

During the second quarter of 2020, the Company initiated and substantially completed plans to exit its manufacturing operations in Mobile, Alabama, and relocate the majority of those operations to its existing manufacturing facility in Franklin, Wisconsin. During the three and six months ended June 30, 2020, exit and disposal costs totaled $1.4 million, primarily for employee termination benefit costs and the impairment of certain assets.

During the second quarter of 2020, the Company substantially completed its project to relocate its aerospace connectors manufacturing operations in El Segundo, California, and Riverside, California, to existing lower cost operations in North America. During the three and six months ended June 30, 2020, exit and disposal costs totaled $0.4 million and $2.3 million, respectively, primarily for facility clean up, travel and employee termination benefit costs.

Other Actions

The Company implemented restructuring activities to reduce its overall headcount as a result of general market declines resulting from the effects of the COVID-19 pandemic. These actions resulted in severance expense of $2.1 million and $2.8 million at CIT during the three and six months ended months ended June 30, 2021, respectively.

During the three and six months ended June 30, 2020, these actions resulted in severance payments of $2.8 million and $2.1 million at CIT and CFT, respectively. CCM incurred $0.2 million and $0.3 million in severance payments for the three and six months ended June 30, 2020, respectively.

Consolidated Summary

The Company's exit and disposal costs by activity follows:

(in millions)	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Employee severance and benefit arrangements	$	3.2	$	5.7	$	5.1	$	6.0
Relocation costs	0.2		0.1		0.3		0.3
Accelerated depreciation and impairments	2.1		0.4		2.1		0.4
Facility cleanup costs	—		—		(1.0)		0.8
Other restructuring costs	1.1		0.7		1.5		1.4
Total exit and disposal costs	$	6.6	$	6.9	$	8.0	$	8.9

The Company's exit and disposal costs by segment follows:

(in millions)	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Carlisle Interconnect Technologies	$	6.6	$	4.6	$	7.9	$	6.5
Carlisle Fluid Technologies	—		2.1		0.1		2.1
Carlisle Construction Materials	—		0.2		—		0.3
Total exit and disposal costs	$	6.6	$	6.9	$	8.0	$	8.9

The Company's exit and disposal costs by financial statement line item follows:

(in millions)	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Cost of goods sold	$	3.6	$	4.0	$	4.4	$	5.7
Selling and administrative expenses	2.8		2.7		3.4		2.8
Research and development expenses	0.2		—		0.2		—
Other operating expense, net	—		0.2		—		0.4
Total exit and disposal costs	$	6.6	$	6.9	$	8.0	$	8.9

The Company's change in exit and disposal activities liability follows:

(in millions)	Total
Balance as of December 31, 2020	$	6.1
Charges	8.0
Cash payments	(7.3)
Balance as of June 30, 2021	$	6.8

The liability of $6.8 million primarily relates to employee severance and benefit arrangements and is included in accrued and other current liabilities.