Exit and Disposal Activities

6 Months Ended

Jun. 30, 2020

Restructuring and Related Activities [Abstract]

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 second quarter of 2020, the Company initiated plans to exit its manufacturing operations in Mobile, Alabama, and relocate the majority of those operations to its existing manufacturing facility in Franklin, Wisconsin. This project is substantially complete with cumulative exit and disposal costs of $1.4 million, primarily for employee termination benefit costs and the impairment of certain assets, recognized through June 30, 2020.

The Company is substantially complete with its project to relocate its aerospace connectors manufacturing operations in El Segundo, California, and Riverside, California, to existing lower cost operations in North America. During the three and six months ended June 30, 2020, exit and disposal costs totaled $0.4 million and $2.3 million, respectively, primarily for facility clean up, travel and employee termination benefit costs. Cumulative exit and disposal costs of $10.9 million were recognized through June 30, 2020.

CBF

During the first quarter of 2020, the Company initiated plans to consolidate certain operations globally to reduce costs and streamline processes by consolidating certain positions within selling, general and administrative, and manufacturing functions, and exited less profitable product lines that resulted in asset write-offs. During the three and six months ended June 30, 2020, exit and disposal costs totaled $1.4 million and $4.2 million, respectively. Total associated exit and disposal costs are expected to approximate $5.8 million, with approximately $1.6 million of costs remaining to be incurred in the second half of 2020.

Other Actions

The Company implemented restructuring activities to reduce its overall headcount as a result of general market declines from the coronavirus global pandemic ("COVID-19"). These actions resulted in severance payments of $2.8 million and $2.1 million at CIT and CFT, respectively, during the three months ended June 30, 2020. CCM incurred $0.2 million and $0.3 million in severance payments for the three and six months ended June 30, 2020, respectively.

Consolidated Summary

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


(in millions)	Three Months Ended June 30,									Six Months Ended June 30,
			2020			2019			2020			2019
Employee severance and benefit arrangements	$	6.5		$	0.4		$	8.4		$	6.1
Accelerated depreciation and impairments	1.0			—			2.2			—
Facility cleanup costs	—			—			0.8			—
Relocation costs	0.1			—			0.3			0.1
Lease termination costs	—			0.4			—			0.9
Other restructuring costs	0.7			0.7			1.4			1.2
Total exit and disposal costs	$	8.3		$	1.5		$	13.1		$	8.3

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


(in millions)	Three Months Ended June 30,									Six Months Ended June 30,
			2020			2019			2020			2019
Carlisle Interconnect Technologies	$	4.6		$	0.9		$	6.5		$	4.8
Carlisle Brake & Friction	1.4			0.5			4.2			1.2
Carlisle Fluid Technologies	2.1			0.1			2.1			2.1
Carlisle Construction Materials	0.2			—			0.3			0.2

Total exit and disposal costs	$	8.3		$	1.5		$	13.1		$	8.3

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,
			2020			2019			2020			2019
Cost of goods sold	$	3.1		$	0.9		$	6.1		$	4.5
Selling and administrative expenses	3.6			0.6			5.2			3.5
Research and development expenses	—			—			—			0.1
Other operating expense, net	1.6			—			1.8			0.2
Total exit and disposal costs	$	8.3		$	1.5		$	13.1		$	8.3

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


(in millions)	Total
Balance as of December 31, 2019	$	5.2
Charges	13.1
Cash payments	(15.1)

Balance as of June 30, 2020	$	3.2

The liability of $3.2 million primarily relates to employee severance and benefit arrangements and is included in accrued and other current liabilities.