Exit and Disposal Activities

12 Months Ended

Dec. 31, 2016

Exit and Disposal Activities

Exit and Disposal Activities

Note 4—Exit and Disposal Activities

The Company has undertaken operational restructuring and other cost reduction actions to streamline processes and manage costs throughout various departments within the Company. During 2016, the Company implemented cost reduction plans, which resulted in exit, disposal and employee termination benefit costs totaling $15.5 million, primarily resulting from a planned reduction in workforce, facility consolidation and relocation, and lease termination costs, as further discussed below.

During 2016, the Carlisle Interconnect Technologies segment recognized a liability and related expense for employee termination benefits of $7.6 million related to planned growth opportunities and long-term cost competitiveness improvements in the medical business. Termination benefits reflect those earned by certain employees through December 31, 2016. The total cost of these termination benefits is expected to be approximately $12 million, with the additional benefits to be recognized through the second quarter of 2018. Cash payments related to these benefits will be incurred beginning in the first half of 2017 through the second quarter of 2018. Other associated costs are not expected to be significant.

During 2016, the Carlisle Fluid Technologies segment recognized costs primarily associated with employee termination benefits and relocation costs of $4.1 million related to the relocation of administrative functions to Scottsdale, Arizona and closure of facilities in Swanton, Ohio and France. These actions are substantially complete with remaining costs of approximately $0.6 million expected to be incurred principally in 2017.

During 2016, the Company relocated the Corporate headquarters to Scottsdale, Arizona. As a result, the Company incurred $3.8 million of costs related primarily to employee termination benefits and cost associated with relocating employees. This relocation is substantially complete as of December 31, 2016.

A summary of our expense related to exit and disposal activities is as follows:

(in millions)	2016
Employee severance and benefit arrangements	$	10.1
Relocation costs		3.8
Other restructuring costs		1.6
Total exit and disposal costs	$	15.5

A summary of our expense by segment related to exit and disposal activities is as follows:

(in millions)	2016
Total by segment
Carlisle Interconnect Technologies		7.6
Carlisle Fluid Technologies		4.1
Corporate		3.8
Total exit and disposal costs	$	15.5

A summary of our expense by financial statement line related to exit and disposal activities is as follows:

(in millions)	2016
Selling and administrative expenses	$	15.0
Other expense		0.5
Total exit and disposal costs	$	15.5

A summary of our liability related to exit and disposal activities is as follows:

	Carlisle		Carlisle
	Interconnect		Fluid
(in millions)	Technologies		Technologies		Corporate		Total
Balance at December 31, 2015	$	-	$	-	$	-	$	-
Accruals		7.6		4.1		3.8		15.5
Cash payments		-		(3.4)		(3.1)		(6.5)
Balance at December 31, 2016	$	7.6	$	0.7	$	0.7	$	9.0

The liability of $9.0 million primarily relates to employee severance and benefit arrangements, and is included in accrued expenses in the Consolidated Balance Sheet.