Note 6—Exit and Disposal Activities

The following table represents the effect of exit and disposal activities related to continuing operations during the three months ended March 31, 2013 and 2012, respectively:

	Three Months Ended March 31,
(in millions)	2013		2012
Cost of goods sold	$	0.6	$	—
Selling and administrative expenses	0.1		—
Other expense	—		0.3
Total exit and disposal costs	$	0.7	$	0.3

Exit and disposal activities by type of charge were as follows:

	Three Months Ended March 31,
(in millions)	2013		2012
Termination benefits	$	0.1	$	—
Other associated costs	0.6		0.3
Total exit and disposal costs	$	0.7	$	0.3

Exit and disposal accrual activities for the three months ended March 31, 2013 were as follows:

	Termination			Asset Write-		Other associated
(in millions)	Benefits			downs		costs			Total
Balance at December 31, 2012	$	1.8		$	—	$	0.6		$	2.4
2013 charges to expense and adjustments	0.1			—		0.6			0.7
2013 usage	(1.7		)	—		(0.9		)	(2.6		)
Balance at March 31, 2013	$	0.2		$	—	$	0.3		$	0.5

Exit and disposal activities by segment were as follows:

	Three Months Ended March 31,
(in millions)	2013		2012
Total by segment
Carlisle Transportation Products	$	0.3	$	—
Carlisle Brake & Friction	—		0.3
Carlisle FoodService Products	0.4		—
Total exit and disposal costs	$	0.7	$	0.3

Carlisle Construction Materials — During the second quarter of 2012, the Company announced plans to consolidate its manufacturing operations in Elberton, GA into its locations in Terrell, TX and Carlisle, PA. Costs of $0.8 million incurred in 2012 consisted of employee termination cost, equipment relocation, and other associated costs. No further costs are expected to be incurred related to this project.

Carlisle Transportation Products — During 2012, the Company transferred its remaining manufacturing operations in Buji, China. The tire manufacturing operations were transferred from Buji to Meizhou, China. The belt manufacturing operations were transferred from Buji to existing manufacturing facilities in Fort Scott, KS and Springfield, MO. The total expected cost of the project is $2.9 million. During the three months ended March 31, 2013, the Company incurred $0.3 million of exit and disposal costs related to the transfer of its Buji, China tire and belt manufacturing operations, consisting of early lease termination costs. Included in Accrued Expenses at March 31, 2013 was $0.1 million related to unpaid employee termination costs related to this project. The Company expects no additional costs to be incurred related to this project.

Carlisle Brake & Friction — In the third quarter of 2011, the Company decided to close its braking plant in Canada. The total cost of the project was $1.0 million, including $0.9 million of expense recognized in 2011 for employee termination costs and other associated costs. Expenses of $0.1 million were recognized in 2012 reflecting $0.3 million expense for the write down of assets sold in connection with the plant closure, net of $0.2 million income to reverse an accrual for pension costs which will not be paid. As of March 31, 2013, a $0.2 million liability, reported in Accrued expenses, exists for unpaid lease termination costs. The Company expects no additional costs to be incurred related to this project.

Carlisle FoodService Products — In the third quarter of 2012, the Company announced plans to close its China manufacturing facility and its Zevenaar, Netherlands and Reno, NV distribution facilities. Manufacturing operations were moved from China to Carlisle’s existing Oklahoma City, OK and Chihuahua, Mexico manufacturing facilities. The distribution activities previously conducted at the Zevenaar, Netherlands and Reno, NV facilities were relocated to the Oklahoma City, OK distribution center or to third party distributors throughout Europe. The total expected cost of the project is $5.7 million, including costs for impairment of long-lived assets, employee termination, contract termination, legal and consulting services, and relocation and retrofitting of plant assets of which $5.3 million was incurred in 2012. During the three months ended March 31, 2013, the Company incurred $0.4 million of exit and disposal costs for employee termination and equipment relocation. As of March 31, 2013, a $0.2 million liability related to the project is included in Accrued Expenses. The Company expects no additional costs to be incurred related to this project.