Discontinued Operations

3 Months Ended

Mar. 31, 2024

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On January 30, 2024, the Company entered into a definitive agreement to sell CIT to Amphenol Corporation for cash consideration of $2.025 billion, subject to certain customary purchase price adjustments. The transaction is subject to customary closing conditions, including regulatory clearances, and is expected to close by the end of the second quarter of 2024.

On October 2, 2023, the Company completed the sale of CFT for cash proceeds of $520 million, subject to certain customary purchase price adjustments.

The sales of CFT and CIT are consistent with the Company's pivot to a pure play building products company, employing a capital allocation approach to its highest returning businesses.

A summary of the results from discontinued operations included in the Condensed Consolidated Statements of Income and Comprehensive Income follows:

	Three Months Ended March 31, 2024
	CIT		CFT		Other		Total
Revenues	$	213.4	$	—	$	—	$	213.4
Cost of goods sold	153.8		—		—		153.8
Other operating expenses, net	22.5		—		—		22.5
Operating income	37.1		—		—		37.1
Other non-operating (income) expense, net	(0.2)		6.4		1.2		7.4
Income (loss) from discontinued operations before income taxes and loss on sale	37.3		(6.4)		(1.2)		29.7
Loss on sale of discontinued operations	—		0.2		—		0.2
Pre-close transaction expenses(1)	7.6		—		—		7.6
Income (loss) from discontinued operations before income taxes	29.7		(6.6)		(1.2)		21.9
Provision for (benefit from) income taxes	3.4		(2.3)		(0.6)		0.5
Income (loss) from discontinued operations	$	26.3	$	(4.3)	$	(0.6)	$	21.4

(1)Includes legal fees and stock-based compensation expenses directly related to the sale incurred prior to the close of the transaction. Upon close of the transaction, these expenses are incorporated into the (gain)/loss on sale of discontinued operations.

	Three Months Ended March 31, 2023
	CIT		CFT		Other		Total
Revenues	$	213.5	$	72.7	$	—	$	286.2
Cost of goods sold	168.3		42.5		—		210.8
Other operating expenses, net	35.3		19.8		—		55.1
Operating income	9.9		10.4		—		20.3
Other non-operating income, net	(0.4)		—		(0.5)		(0.9)
Income from discontinued operations before income taxes	10.3		10.4		0.5		21.2
Provision for (benefit from) income taxes	2.1		2.5		(1.5)		3.1
Income from discontinued operations	$	8.2	$	7.9	$	2.0	$	18.1

Expense reflected in CFT and Other in the first quarter of 2024 are primarily related to legal matters related to the sold businesses.

A summary of the carrying amounts of major assets and liabilities of CIT, which were classified as held for sale in the Condensed Consolidated Balance Sheets, follows:

(in millions)	March 31, 2024		December 31, 2023
ASSETS
Cash and cash equivalents	$	17.6	$	28.8
Receivables, net	145.1		145.5
Inventories	160.9		149.5
Contract assets	66.6		75.9
Prepaid other current assets	21.2		23.7
Property, plant, and equipment, net	193.2		183.4
Goodwill	838.3		838.0
Other intangible assets, net	259.4		259.3
Other long-term assets	21.3		21.5
Total assets of the disposal group classified as held for sale(1)	$	1,723.6	$	1,725.6
LIABILITIES
Accounts payable	$	78.7	$	84.3
Contract liabilities	0.7		1.4
Accrued liabilities and other	43.3		52.4
Other long-term liabilities	80.8		80.7
Total liabilities of the disposal group classified as held for sale(1)	$	203.5	$	218.8

(1) The assets and liabilities of the disposal group classified as held for sale are classified as current on the March 31, 2024 Condensed Consolidated Balance Sheet as it is probable that the sale will occur and proceeds will be collected within one year.

A summary of cash flows from discontinued operations included in the Condensed Consolidated Statements of Cash Flows follows:

	Three Months Ended March 31, 2024
(in millions)	CIT		CFT		Other		Total
Net cash provided by (used in) operating activities	$	12.4	$	(4.3)	$	(0.6)	$	7.5
Net cash used in investing activities	(8.3)		—		—		(8.3)
Net cash (used in) provided by financing activities(1)	(15.3)		4.3		0.6		(10.4)
Change in cash and cash equivalents from discontinued operations	(11.2)		—		—		(11.2)
Cash and cash equivalents from discontinued operations at beginning of period	28.8		—		—		28.8
Cash and cash equivalents from discontinued operations at end of period	$	17.6	$	—	$	—	$	17.6

	Three Months Ended March 31, 2023
(in millions)	CIT		CFT		Other		Total
Net cash provided by operating activities	$	14.2	$	10.3	$	2.0	$	26.5
Net cash used in investing activities	(6.6)		(0.3)		—		(6.9)
Net cash used in financing activities(1)	(8.1)		(7.0)		(2.0)		(17.1)
Change in cash and cash equivalents from discontinued operations	(0.5)		3.0		—		2.5
Cash and cash equivalents from discontinued operations at beginning of period	23.9		11.3		—		35.2
Cash and cash equivalents from discontinued operations at end of period	$	23.4	$	14.3	$	—	$	37.7

(1)Represents (repayments) or borrowings from the Carlisle cash pool to fund working capital and capital expenditures and return of capital upon sale.