Exit and Disposal and Other Restructuring Activities

6 Months Ended

Jun. 30, 2022

Restructuring and Related Activities [Abstract]

Exit and Disposal and Other Restructuring Activities

Exit and Disposal and Other Restructuring Activities

The 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 2021, the Company initiated plans to exit its manufacturing operations in Carlsbad, California, and relocate the majority of those operations to its existing facilities in North America. The project is estimated to take a remaining six to nine months to complete. During the three and six months ended June 30, 2022, exit and disposal costs totaled $0.4 million and $1.2 million, respectively, primarily for employee termination benefit costs and accelerated depreciation. Total exit and disposal costs are expected to approximate $4.8 million, with approximately $2.0 million costs remaining to be incurred, primarily in 2022.

In the fourth quarter of 2021, the Company completed its project to relocate its manufacturing operations in Kent, Washington, as a result of market declines resulting from the COVID-19 pandemic for cumulative exit and disposal costs of $14.2 million. 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.

Consolidated Summary

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

(in millions)	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Accelerated depreciation and impairments	$	0.7	$	2.1	$	1.3	$	2.1
Employee severance and benefit arrangements	0.2		3.2		1.3		5.1
Facility cleanup costs	0.1		—		0.2		(1.0)
Lease termination costs	—		—		0.1		—
Relocation costs	—		0.2		—		0.3
Other restructuring costs	0.1		1.1		0.4		1.5
Total exit and disposal costs	$	1.1	$	6.6	$	3.3	$	8.0

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

(in millions)	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Carlisle Interconnect Technologies	$	1.1	$	6.6	$	3.0	$	7.9
Carlisle Weatherproofing Technologies	—		—		0.3		—
Carlisle Fluid Technologies	—		—		—		0.1
Total exit and disposal costs	$	1.1	$	6.6	$	3.3	$	8.0

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,
	2022		2021		2022		2021
Cost of goods sold	$	1.0	$	3.6	$	2.9	$	4.4
Selling and administrative expenses	0.1		2.8		0.4		3.4
Research and development expenses	—		0.2		—		0.2
Total exit and disposal costs	$	1.1	$	6.6	$	3.3	$	8.0

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

(in millions)	Total
Balance as of December 31, 2021	$	6.5
Charges	3.3
Settlements	(8.3)
Balance as of June 30, 2022	$	1.5

The liability of $1.5 million primarily relates to employee severance and benefit arrangements and is included in accrued and other current liabilities.