Exit and Disposal and Other Restructuring Activities

6 Months Ended

Jun. 30, 2023

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 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 an additional twelve to fifteen months to complete. During the three and six months ended June 30, 2023, exit and disposal costs totaled $1.1 million and $1.6 million, respectively, primarily for employee termination benefit costs. Total exit and disposal costs are expected to approximate $6.2 million, with approximately $4.6 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 other existing facilities in North America for cumulative exit and disposal costs of $5.5 million. During the six months ended June 30, 2023, project costs totaled $1.0 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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Employee severance and benefit arrangements	$	1.0	$	0.2	$	2.7	$	1.3
Accelerated depreciation and impairments	0.1		0.7		1.5		1.3
Relocation costs	—		—		0.3		—
Facility cleanup costs	0.2		0.1		0.2		0.2
Lease termination costs	—		—		—		0.1
Other restructuring costs	0.4		0.1		1.1		0.4
Total exit and disposal costs	$	1.7	$	1.1	$	5.8	$	3.3

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

(in millions)	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Carlisle Interconnect Technologies	$	1.1	$	1.1	$	2.9	$	3.0
Carlisle Weatherproofing Technologies	0.5		—		2.7		0.3
Carlisle Construction Materials	0.1		—		0.2		—
Total exit and disposal costs	$	1.7	$	1.1	$	5.8	$	3.3

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,
	2023		2022		2023		2022
Cost of goods sold	$	1.4	$	1.0	$	5.4	$	2.9
Selling and administrative expenses	0.1		0.1		0.2		0.4
Other operating expense, net	0.2		—		0.2		—
Total exit and disposal costs	$	1.7	$	1.1	$	5.8	$	3.3

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

(in millions)	2023		2022
Balance as of January 1,	$	1.5	$	6.3
Charges	5.8		3.3
Settlements	(7.1)		(8.1)
Balance as of June 30,	$	0.2	$	1.5

The liability of $0.2 million as of June 30, 2023, primarily relates to employee severance and benefit arrangements and is included in accrued and other current liabilities.