Exit and Disposal and Other Restructuring Activities

3 Months Ended

Mar. 31, 2023

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 first quarter of 2023, the Company initiated plans to exit its manufacturing operations in Lugano, Switzerland, and relocate the majority of those operations to its existing facilities in North America. The project is estimated to take fifteen to eighteen months to complete. During the three months ended March 31, 2023, exit and disposal costs totaled $0.5 million, primarily for employee termination benefit costs. Total exit and disposal costs are expected to approximate $7.0 million, with approximately $6.5 million costs remaining to be incurred, primarily in 2023.

The Company has substantially completed its plan to exit its manufacturing operations in Carlsbad, California, and relocate the majority of those operations to its existing facilities in North America for cumulative exit and disposal costs of $5.6 million. During the three months ended March 31, 2023, project costs totaled $1.1 million, primarily for relocation expenses and employee termination benefit costs.

Consolidated Summary

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

(in millions)	Three Months Ended March 31,
	2023		2022
Employee severance and benefit arrangements	$	1.9	$	1.1
Accelerated depreciation and impairments	1.4		0.6
Relocation costs	0.3		—
Facility cleanup costs	—		0.1
Lease termination costs	—		0.1
Other restructuring costs	0.7		0.3
Total exit and disposal costs	$	4.3	$	2.2

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

(in millions)	Three Months Ended March 31,
	2023		2022
Carlisle Weatherproofing Technologies	$	2.2	$	0.3
Carlisle Interconnect Technologies	1.8		1.9
Carlisle Fluid Technologies	0.2		—
Carlisle Construction Materials	0.1		—
Total exit and disposal costs	$	4.3	$	2.2

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

(in millions)	Three Months Ended March 31,
	2023		2022
Cost of goods sold	$	4.1	$	1.9
Selling and administrative expenses	0.2		0.3
Total exit and disposal costs	$	4.3	$	2.2

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

(in millions)	2023		2022
Balance as of January 1,	$	1.6	$	6.5
Charges	4.3		2.2
Settlements	(5.0)		(6.5)
Balance as of March 31,	$	0.9	$	2.2

The liability of $0.9 million as of March 31, 2023, primarily relates to employee severance and benefit arrangements and is included in accrued and other current liabilities.