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Discontinued Operations | 6 Months Ended
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Jun. 30, 2023
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | Discontinued Operations On June 14, 2023, the Company signed a definitive agreement to sell CFT to an affiliate of Lone Star Funds for proceeds of $520 million at closing, subject to certain adjustments. The transaction is subject to customary closing conditions, including regulatory clearances, and is expected to close in the third quarter of 2023. The sale of CFT is consistent with the Company's optimization strategy, as laid out in Vision 2025. A summary of the results from discontinued operations included in the Condensed Consolidated Statements of Income and Comprehensive Income follows:
|  | Three Months Ended June 30,
(in millions) |  | 2023 |  | 2022
| CFT |  | Other |  | Total |  | CFT |  | Other |  | Total
Revenues |  | $ | 78.0 |  |  | $ | — |  |  | $ | 78.0 |  |  | $ | 72.0 |  |  | $ | — |  |  | $ | 72.0 |
Cost of goods sold |  | 44.6 |  |  | — |  |  | 44.6 |  |  | 44.8 |  |  | — |  |  | 44.8 |
Impairment(1) |  | 24.8 |  |  | — |  |  | 24.8 |  |  | — |  | — |  | — |  |  | — |
Other operating expenses, net |  | 18.5 |  |  | — |  |  | 18.5 |  |  | 20.2 |  |  | — |  |  | 20.2 |
Operating (loss) income |  | (9.9) |  |  | — |  |  | (9.9) |  |  | 7.0 |  |  | — |  |  | 7.0 |
Other non-operating expense (income), net |  | 0.5 |  |  | 1.1 |  |  | 1.6 |  |  | (0.6) |  |  | (4.1) |  |  | (4.7) |
(Loss) income from discontinued operations before income taxes and loss from classification to held for sale |  | (10.4) |  |  | (1.1) |  |  | (11.5) |  |  | 7.6 |  |  | 4.1 |  |  | 11.7 |
Loss from classification to held for sale(2) |  | 50.8 |  |  | — |  |  | 50.8 |  |  | — |  |  | — |  |  | — |
(Loss) income from discontinued operations before income taxes |  | (61.2) |  |  | (1.1) |  |  | (62.3) |  |  | 7.6 |  |  | 4.1 |  |  | 11.7 |
(Benefit from) provision for income taxes |  | (14.9) |  |  | (0.5) |  |  | (15.4) |  |  | 2.0 |  |  | (1.0) |  |  | 1.0 |
(Loss) income from discontinued operations |  | $ | (46.3) |  |  | $ | (0.6) |  |  | $ | (46.9) |  |  | $ | 5.6 |  |  | $ | 5.1 |  |  | $ | 10.7 |
|  | Six Months Ended June 30,
(in millions) |  | 2023 |  | 2022
| CFT |  | Other |  | Total |  | CFT |  | Other |  | Total
Revenues |  | $ | 150.7 |  |  | $ | — |  |  | $ | 150.7 |  |  | $ | 143.1 |  |  | $ | — |  |  | $ | 143.1 |
Cost of goods sold |  | 87.1 |  |  | — |  |  | 87.1 |  |  | 90.1 |  |  | — |  |  | 90.1 |
Impairment(1) |  | 24.8 |  |  | — |  |  | 24.8 |  |  | — |  |  | — |  |  | — |
Other operating expenses, net |  | 38.3 |  |  | — |  |  | 38.3 |  |  | 41.4 |  |  | — |  |  | 41.4 |
Operating income |  | 0.5 |  |  | — |  |  | 0.5 |  |  | 11.6 |  |  | — |  |  | 11.6 |
Other non-operating expense (income), net |  | 0.5 |  |  | 0.6 |  |  | 1.1 |  |  | 0.2 |  |  | (4.2) |  |  | (4.0) |
(Loss) income from discontinued operations before income taxes and loss from classification to held for sale |  | — |  |  | (0.6) |  |  | (0.6) |  |  | 11.4 |  |  | 4.2 |  |  | 15.6 |
Loss from classification to held for sale(2) |  | 50.8 |  |  | — |  |  | 50.8 |  |  | — |  |  | — |  |  | — |
(Loss) income from discontinued operations before income taxes |  | (50.8) |  |  | (0.6) |  |  | (51.4) |  |  | 11.4 |  |  | 4.2 |  |  | 15.6 |
(Benefit from) provision for income taxes |  | (12.4) |  |  | (2.0) |  |  | (14.4) |  |  | 2.5 |  |  | (0.8) |  |  | 1.7 |
(Loss) income from discontinued operations |  | $ | (38.4) |  |  | $ | 1.4 |  |  | $ | (37.0) |  |  | $ | 8.9 |  |  | $ | 5.0 |  |  | $ | 13.9 |
(1)In the second quarter of 2023, as a result of the anticipated sale of the CFT reporting unit, the Company evaluated the reporting unit for impairment and determined that it was more likely than not that the carrying value of the reporting unit exceeded its fair value. Accordingly, an impairment analysis was performed which resulted in a goodwill impairment charge of $24.8 million. (2)Includes the valuation allowance to reduce the carrying amount of the disposal group to its fair value less costs to sell and other transaction expenses incurred. A summary of the carrying amounts of major assets and liabilities of CFT, which were classified as held for sale in the Condensed Consolidated Balance Sheets follows:
(in millions) |  | June 30, 2023 |  | December 31, 2022
ASSETS |  |  |  |
Cash and cash equivalents |  | $ | 9.2 |  |  | $ | 11.3 |
Receivables, net |  | 65.9 |  |  | 76.1 |
Inventories |  | 92.2 |  |  | 89.3 |
Prepaid other current assets |  | 9.9 |  |  | 12.6 |
Valuation allowance(1) |  | (45.1) |  |  | — |
Total current assets |  |  |  | 189.3 |
Property, plant, and equipment, net |  | 49.5 |  |  | 51.6 |
Goodwill, net |  | 163.4 |  |  | 187.5 |
Other intangible assets, net |  | 216.7 |  |  | 222.6 |
Other long-term assets |  | 2.9 |  |  | 1.9 |
Total long-term assets |  |  |  | 463.6 |
Total assets of the disposal group classified as held for sale(2) |  | $ | 564.6 |  |  | $ | 652.9 |
LIABILITIES |  |  |  |
Accounts payable |  | $ | 19.5 |  |  | $ | 23.8 |
Accrued liabilities and other |  | 26.7 |  |  | 35.6 |
Total current liabilities |  |  |  | 59.4 |
Other long-term liabilities |  | 9.7 |  |  | 12.3 |
Total long-term liabilities |  |  |  | 12.3 |
Total liabilities of the disposal group classified as held for sale(2) |  | $ | 55.9 |  |  | $ | 71.7 |
(1) The Company has recorded a contra asset to reflect the carrying amount of the disposal group at its fair value less cost to sell. (2) The assets and liabilities of the disposal group classified as held for sale are classified as current on the June 30, 2023 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:
|  | Six Months Ended June 30, 2023
(in millions) |  | CFT |  | Other |  | Total
Net cash provided by operating activities |  | $ | 36.3 |  |  | $ | 1.4 |  |  | $ | 37.7 |
Net cash used in investing activities |  | (0.5) |  |  | — |  |  | (0.5) |
Net cash used in financing activities(1) |  | (37.9) |  |  | (1.4) |  |  | (39.3) |
Change in cash and cash equivalents from discontinued operations |  | (2.1) |  |  | — |  |  | (2.1) |
Cash and cash equivalents from discontinued operations at beginning of period |  | 11.3 |  |  | — |  |  | 11.3 |
Cash and cash equivalents from discontinued operations at end of period |  | $ | 9.2 |  |  | $ | — |  |  | $ | 9.2 |
|  | Six Months Ended June 30, 2022
(in millions) |  | CFT |  | Other |  | Total
Net cash provided by (used in) operating activities |  | $ | 3.4 |  |  | $ | (2.1) |  |  | $ | 1.3 |
Net cash (used in) provided by investing activities |  | (3.0) |  |  | 132.0 |  |  | 129.0 |
Net cash used in financing activities(1) |  | (2.6) |  |  | (129.9) |  |  | (132.5) |
Change in cash and cash equivalents from discontinued operations |  | (2.2) |  |  | — |  |  | (2.2) |
Cash and cash equivalents from discontinued operations at beginning of period |  | 10.7 |  |  | — |  |  | 10.7 |
Cash and cash equivalents from discontinued operations at end of period |  | $ | 8.5 |  |  | $ | — |  |  | $ | 8.5 |
(1)Represents (repayments) or borrowings from the Carlisle cash pool to fund working capital and capital expenditures and return of capital upon sale. On August 2, 2021, the Company completed the sale of the equity interests and assets comprising its former Carlisle Brake & Friction ("CBF") segment for gross proceeds of (i) $250 million at closing, subject to certain adjustments, and (ii) the right to receive up to an additional $125 million based on CBF's achievement of certain performance targets. On February 23, 2022, the Company received $125 million in cash for the full amount of the contingent consideration. The sale of CBF was consistent with the Company's optimization strategy, as laid out in Vision 2025.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//360/tableOfContent + Details
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