CARLISLE COMPANIES INC, 10-Q filed on 10/22/2013
Quarterly Report
Document and Entity Information
9 Months Ended
Sep. 30, 2013
Oct. 18, 2013
Document and Entity Information
 
 
Entity Registrant Name
CARLISLE COMPANIES INC 
 
Entity Central Index Key
0000790051 
 
Document Type
10-Q 
 
Document Period End Date
Sep. 30, 2013 
 
Amendment Flag
false 
 
Current Fiscal Year End Date
--12-31 
 
Entity Current Reporting Status
Yes 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
63,602,956 
Document Fiscal Year Focus
2013 
 
Document Fiscal Period Focus
Q3 
 
Condensed Consolidated Statements of Comprehensive Income (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Condensed Consolidated Statements of Comprehensive Income
 
 
 
 
Net sales
$ 968.8 
$ 910.2 
$ 2,821.9 
$ 2,783.8 
Cost and expenses:
 
 
 
 
Cost of goods sold
734.0 
684.3 
2,159.3 
2,091.2 
Selling and administrative expenses
105.8 
101.1 
321.2 
314.6 
Research and development expenses
8.8 
8.1 
27.4 
24.4 
Impairment of assets
 
 
100.0 
 
Other (income) expense, net
(3.2)
6.1 
(2.0)
6.5 
Earnings before interest and income taxes
123.4 
110.6 
216.0 
347.1 
Interest expense, net
8.5 
6.2 
25.4 
19.2 
Earnings before income taxes from continuing operations
114.9 
104.4 
190.6 
327.9 
Income tax expense (Note 8)
38.3 
34.7 
50.5 
108.7 
Income from continuing operations
76.6 
69.7 
140.1 
219.2 
Discontinued operations (Note 5)
 
 
 
 
Income (loss) from discontinued operations
(0.2)
(0.2)
3.3 
Income tax (benefit) expense
 
 
(0.1)
0.1 
Income (loss) from discontinued operations
 
(0.2)
(0.1)
3.2 
Net income
76.6 
69.5 
140.0 
222.4 
Basic earnings per share attributable to common shares (Note 9)
 
 
 
 
Income from continuing operations (in dollars per share)
$ 1.20 
$ 1.11 
$ 2.19 
$ 3.50 
Income (loss) from discontinued operations (in dollars per share)
 
$ (0.01)
 
$ 0.05 
Basic earnings per share (in dollars per share)
$ 1.20 
$ 1.10 
$ 2.19 
$ 3.55 
Diluted earnings per share attributable to common shares (Note 9)
 
 
 
 
Income from continuing operations (in dollars per share)
$ 1.18 
$ 1.08 
$ 2.16 
$ 3.43 
Income (loss) from discontinued operations (in dollars per share)
 
 
 
$ 0.05 
Diluted earnings per share (in dollars per share)
$ 1.18 
$ 1.08 
$ 2.16 
$ 3.48 
Average shares outstanding - in thousands (Note 9)
 
 
 
 
Basic (in shares)
63,567 
62,708 
63,429 
62,347 
Diluted (in shares)
64,890 
63,946 
64,714 
63,520 
Dividends declared and paid
14.1 
12.6 
39.7 
35.1 
Dividends declared and paid per share (in dollars per share)
$ 0.22 
$ 0.20 
$ 0.62 
$ 0.56 
Comprehensive Income
 
 
 
 
Net income
76.6 
69.5 
140.0 
222.4 
Other comprehensive income (Note 19)
 
 
 
 
Change in foreign currency translation, net of tax
11.5 
4.8 
1.1 
0.3 
Change in accrued post-retirement benefit liability, net of tax
0.9 
0.8 
3.3 
2.4 
Loss on hedging activities, net of tax
(0.1)
(0.1)
(0.3)
(0.3)
Other comprehensive income
12.3 
5.5 
4.1 
2.4 
Comprehensive income
$ 88.9 
$ 75.0 
$ 144.1 
$ 224.8 
Condensed Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Current assets:
 
 
Cash and cash equivalents
$ 332.4 
$ 112.5 
Receivables, net of allowance of $4.7 in 2013 and $6.0 in 2012
572.3 
482.7 
Inventories (Note 11)
481.3 
538.0 
Deferred income taxes (Note 8)
41.8 
43.1 
Prepaid expenses and other current assets
34.3 
29.0 
Total current assets
1,462.1 
1,205.3 
Property, plant and equipment, net of accumulated depreciation of $681.5 in 2013 and $635.7 in 2012 (Note 12)
645.3 
637.1 
Other assets:
 
 
Goodwill, net (Note 13)
859.6 
958.8 
Other intangible assets, net (Note 13)
590.4 
617.5 
Other long-term assets
35.3 
38.6 
Non-current assets held for sale (Note 5)
4.2 
 
Total other assets
1,489.5 
1,614.9 
TOTAL ASSETS
3,596.9 
3,457.3 
Current liabilities:
 
 
Short-term debt, including current maturities (Note 15)
 
Accounts payable
274.3 
259.7 
Accrued expenses
224.2 
193.3 
Deferred revenue (Note 17)
17.1 
17.6 
Total current liabilities
515.6 
470.6 
Long-term liabilities:
 
 
Long-term debt (Note 15)
752.6 
752.5 
Deferred revenue (Note 17)
140.7 
135.4 
Other long-term liabilities (Note 18)
264.4 
310.7 
Total long-term liabilities
1,157.7 
1,198.6 
Shareholders' equity:
 
 
Preferred stock, $1 par value per share. Authorized and unissued 5,000,000 shares
   
   
Common stock, $1 par value per share. Authorized 100,000,000 shares; 78,661,248 shares issued; 63,597,143 outstanding in 2013 and 63,127,299 outstanding in 2012
78.7 
78.7 
Additional paid-in capital
194.4 
171.4 
Deferred compensation equity (Note 7)
3.3 
0.6 
Cost of shares in treasury - 14,823,115 shares in 2013 and 15,249,714 shares in 2012
(210.0)
(215.4)
Accumulated other comprehensive loss (Note 19)
(31.4)
(35.5)
Retained earnings
1,888.6 
1,788.3 
Total shareholders' equity
1,923.6 
1,788.1 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$ 3,596.9 
$ 3,457.3 
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Condensed Consolidated Balance Sheets
 
 
Receivables, allowance (in dollars)
$ 4.7 
$ 6.0 
Property, plant and equipment, accumulated depreciation (in dollars)
$ 681.5 
$ 635.7 
Preferred stock, par value (in dollars per share)
$ 1 
$ 1 
Preferred stock, Authorized shares
5,000,000 
5,000,000 
Preferred stock, unissued shares
5,000,000 
5,000,000 
Common stock, par value (in dollars per share)
$ 1 
$ 1 
Common stock, Authorized shares
100,000,000 
100,000,000 
Common stock, shares issued
78,661,248 
78,661,248 
Common stock, shares outstanding
63,597,143 
63,127,299 
Treasury, shares
14,823,115 
15,249,714 
Condensed Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Operating activities
 
 
Net income
$ 140.0 
$ 222.4 
Reconciliation of net income to cash flows from operating activities:
 
 
Depreciation
59.1 
55.7 
Amortization
30.8 
22.8 
Non-cash compensation, net of tax benefit
10.2 
5.8 
Gain on sale of businesses
 
(3.7)
Loss on sale of property and equipment, net
0.4 
0.9 
Impairment of assets
100.0 
6.1 
Deferred taxes
(39.6)
(4.6)
Foreign exchange (gain) loss
(0.2)
1.8 
Changes in assets and liabilities, excluding effects of acquisitions and divestitures:
 
 
Receivables
(90.4)
(76.4)
Inventories
56.2 
11.4 
Prepaid expenses and other assets
0.8 
21.6 
Accounts payable
14.6 
11.1 
Accrued expenses and deferred revenues
33.8 
40.8 
Long-term liabilities
(0.9)
6.7 
Other operating activities
0.7 
0.8 
Net cash provided by operating activities
315.5 
323.2 
Investing activities
 
 
Capital expenditures
(77.7)
(93.7)
Acquisitions, net of cash
 
(49.3)
Proceeds from sale of property and equipment
6.7 
 
Proceeds from sale of business
 
25.8 
Net cash used in investing activities
(71.0)
(117.2)
Financing activities
 
 
Net change in short-term borrowings and revolving credit lines
(0.2)
(189.3)
Dividends
(39.7)
(35.1)
Stock options and treasury shares, net
15.5 
29.9 
Net cash used in financing activities
(24.4)
(194.5)
Effect of exchange rate changes on cash
(0.2)
0.9 
Change in cash and cash equivalents
219.9 
12.4 
Cash and cash equivalents
 
 
Beginning of period
112.5 
74.7 
End of period
$ 332.4 
$ 87.1 
Basis of Presentation
Basis of Presentation

Note 1—Basis of Presentation

 

The accompanying unaudited condensed consolidated financial statements have been prepared by Carlisle Companies Incorporated (the “Company” or “Carlisle”) in accordance and consistent with the accounting policies stated in the Company’s Annual Report on Form 10-K and should be read in conjunction with the consolidated financial statements therein.  The unaudited condensed consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States and, of necessity, include some amounts that are based upon management estimates and judgments.  Future actual results could differ from such current estimates.  The unaudited condensed consolidated financial statements include assets, liabilities, revenues, and expenses of all majority-owned subsidiaries.  Carlisle accounts for other investments in minority-owned companies where it exercises significant influence, but does not have control, on the equity basis.  Intercompany transactions and balances are eliminated in consolidation.

 

The Company has reclassified certain prior period amounts in the condensed consolidated financial statements to be consistent with the current period presentation.  See Note 3 regarding the transition of the Styled Wheels business between Carlisle Transportation Products (“CTP”) and Carlisle Brake & Friction (“CBF”).

New Accounting Pronouncements
New Accounting Pronouncements

Note 2—New Accounting Pronouncements

 

Newly Adopted Accounting Standards

 

On February 5, 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.  ASU 2013-02 requires that companies present either in a single note or parenthetically on the face of the financial statements, the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source (e.g., the release due to cash flow hedges from interest rate contracts) and the income statement line items affected by the reclassification (e.g., interest income or interest expense). If a component is not required to be reclassified to net income in its entirety (e.g., the net periodic pension cost), companies would instead cross reference to the related footnote for additional information (e.g., the pension footnote).  ASU 2013-02 is effective for fiscal and interim reporting periods beginning after December 15, 2012.  The adoption of this ASU had no material effect on the Company’s consolidated financial statements.

 

In July 2012, FASB issued ASU 2012-02, Testing Indefinite-Lived Intangible Assets for Impairment.  ASU 2012-02 amends the guidance on testing indefinite-lived intangible assets, other than goodwill, for impairment.  Under the revised guidance, entities have the option of first performing a qualitative assessment to determine whether there are any events or circumstances indicating that it is more likely than not that an indefinite-lived intangible asset is impaired.  ASU 2012-02 is effective for fiscal and interim impairment tests performed in fiscal years beginning after September 15, 2012.  The adoption of this ASU is not expected to have a material effect on the Company’s consolidated financial statements.

 

New Accounting Standards Issued but not yet adopted

 

There are currently no new accounting standards that have been issued that will have a significant impact on the Company’s financial position, results of operations, and cash flows upon adoption.

Segment Information
Segment Information

Note 3—Segment Information

 

The Company’s operations are reported in the following segments:

 

Carlisle Construction Materials (“CCM” or the “Construction Materials segment”)—the principal products of this segment are rubber (EPDM) and thermoplastic polyolefin (TPO) roofing membranes used predominantly on non-residential low-sloped roofs, related roofing accessories, including flashings, fasteners, sealing tapes, coatings and waterproofing, and insulation products. The markets served include new construction, re-roofing and maintenance of low-sloped roofs, water containment, HVAC sealants, and coatings and waterproofing.

 

Carlisle Interconnect Technologies (“CIT” or the “Interconnect Technologies segment”)—the principal products of this segment are high-performance wire, cable, connectors, contacts, and cable assemblies primarily for the aerospace, defense electronics, industrial, and test and measurement equipment markets.

 

Carlisle Brake & Friction (“CBF” or the “Brake & Friction segment”)—the principal products of this segment include high-performance brakes and friction material, and clutch and transmission friction material for the mining, construction, aerospace, agriculture, motor sports, and alternative energy markets.

 

Carlisle FoodService Products (“CFSP” or the “FoodService Products segment”)—the principal products of this segment include commercial and institutional foodservice permanentware, table coverings, cookware, catering equipment, fiberglass and composite material trays and dishes, industrial brooms, brushes, mops, and rotary brushes for commercial and non-commercial foodservice operators and sanitary maintenance professionals.

 

Carlisle Transportation Products (“CTP” or the “Transportation Products segment”)—the principal products of this segment include bias-ply, steel belted radial trailer tires, stamped or roll-formed steel wheels, tires, and tire and wheel assemblies, as well as industrial belts and related components.  The markets served include lawn and garden, power sports, high-speed trailer, agriculture, and construction.

 

Corporate—includes general corporate expenses. Corporate assets consist primarily of cash and cash equivalents, facilities, deferred taxes, and other invested assets. Corporate operations also maintain a captive insurance program for workers compensation costs on behalf of all the Carlisle operating companies.  Corporate assets also include assets of ceased operations not classified as held for sale.

 

Effective January 1, 2012, the Company’s Styled Wheels business was transitioned from CTP to CBF.  Styled wheels continued to be manufactured by CTP, but were marketed and sold by the performance racing group within CBF.  Effective December 1, 2012, due to sales, marketing, and administrative inefficiencies, the Styled Wheels business was transitioned from CBF back to CTP.  Prior period results have been retrospectively adjusted to reflect the Styled Wheels business in the Transportation Products segment.

 

Unaudited financial information for operations by reportable segment is included in the following summary:

 

Three Months Ended September 30,

 

2013

 

2012

 

(in millions)

 

Sales(1)

 

EBIT

 

Sales(1)

 

EBIT

 

Carlisle Construction Materials

 

$

505.7

 

$

83.0

 

$

456.7

 

$

79.6

 

Carlisle Interconnect Technologies

 

147.8

 

24.8

 

115.0

 

18.7

 

Carlisle Brake & Friction

 

85.2

 

5.2

 

110.6

 

18.9

 

Carlisle FoodService Products

 

58.1

 

6.9

 

62.7

 

(1.2

)

Carlisle Transportation Products

 

172.0

 

13.9

 

165.2

 

7.4

 

Corporate

 

 

(10.4

)

 

(12.8

)

Total

 

$

968.8

 

$

123.4

 

$

910.2

 

$

110.6

 

 

Nine Months Ended September 30,

 

2013

 

2012

 

(in millions)

 

Sales(1)

 

EBIT

 

Assets

 

Sales(1)

 

EBIT

 

Assets

 

Carlisle Construction Materials

 

$

1,335.8

 

$

197.0

 

$

966.3

 

$

1,280.5

 

$

207.0

 

$

892.2

 

Carlisle Interconnect Technologies

 

434.7

 

65.5

 

1,028.0

 

340.5

 

52.8

 

794.4

 

Carlisle Brake & Friction

 

269.6

 

28.6

 

601.4

 

361.3

 

66.6

 

671.2

 

Carlisle FoodService Products

 

178.9

 

19.3

 

187.2

 

185.2

 

10.0

 

204.4

 

Carlisle Transportation Products

 

602.9

 

(58.4

)

446.7

 

616.3

 

47.7

 

567.1

 

Corporate

 

 

(36.0

)

367.3

 

 

(37.0

)

113.0

 

Total

 

$

2,821.9

 

$

216.0

 

$

3,596.9

 

$

2,783.8

 

$

347.1

 

$

3,242.3

 

 

 

(1) Excludes intersegment sales

Acquisitions
Acquisitions

Note 4—Acquisitions

 

2012 Acquisitions

 

Thermax and Raydex/CDT Limited

 

On December 17, 2012, the Company acquired certain assets and assumed certain liabilities of Thermax (“Thermax”), an unincorporated North American division of Belden Inc., and acquired all of the outstanding shares of Raydex/CDT Limited (“Raydex” and together with Thermax, “Thermax/Raydex”), a company incorporated in England and Wales, for total cash consideration of approximately $265.5 million, net of $0.1 million cash acquired.  The Company funded the acquisition with proceeds from its 3.75% senior unsecured notes due 2022 issued in November 2012.  Thermax/Raydex designs, manufactures, and sells wire and cable products for the commercial and military aerospace markets and certain industrial markets.  The acquisition of Thermax/Raydex adds capabilities and technology to strengthen the Company’s interconnect products business by expanding its product and service range to its customers.  Thermax/Raydex operates within the Interconnect Technologies segment.

 

The following table summarizes the consideration transferred to acquire Thermax/Raydex and the preliminary allocation among the assets acquired and liabilities assumed. The acquisition has been accounted for using the acquisition method of accounting which requires that the consideration be allocated to the acquired assets and assumed liabilities based on their acquisition date fair values with the remainder allocated to goodwill.

 

 

 

 

 

Measurement

 

Revised

 

 

 

Preliminary

 

Period

 

Preliminary

 

 

 

Allocation

 

Adjustments

 

Allocation

 

 

 

 

 

Nine Months

 

 

 

 

 

As of

 

Ended

 

As of

 

(in millions)

 

12/31/2012

 

9/30/2013

 

9/30/2013

 

 

 

 

 

 

 

 

 

Total cash consideration transferred

 

$

265.6

 

$

 

$

265.6

 

 

 

 

 

 

 

 

 

Recognized amounts of identifiable assets acquired and liabilities assumed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash & cash equivalents

 

$

0.1

 

$

 

$

0.1

 

Receivables

 

14.3

 

 

14.3

 

Inventories

 

15.4

 

 

15.4

 

Prepaid expenses and other current assets

 

0.9

 

 

0.9

 

Property, plant and equipment

 

7.2

 

 

7.2

 

Definite-lived intangible assets

 

135.1

 

 

135.1

 

Indefinite-lived intangible assets

 

9.1

 

 

9.1

 

Accounts payable

 

(12.0

)

 

(12.0

)

Accrued expenses

 

(2.6

)

 

(2.6

)

Deferred tax liabilities

 

(2.8

)

 

(2.8

)

 

 

 

 

 

 

 

 

Total identifiable net assets

 

164.7

 

 

164.7

 

 

 

 

 

 

 

 

 

Goodwill

 

$

100.9

 

$

 

$

100.9

 

 

The preliminary goodwill recognized in the acquisition of Thermax/Raydex is attributable to the workforce of Thermax/Raydex, the consistent financial performance of this complementary supplier of high-reliability interconnect products to leading aerospace, avionics and electronics companies and the enhanced scale that Thermax/Raydex brings to the Company.  Thermax/Raydex brings additional high-end cable products and qualified positions to serve the Company’s existing commercial aerospace and industrial customers.  Goodwill arising from the acquisition of Thermax is deductible for income tax purposes as the acquisition of Thermax was an asset purchase.  All of the preliminary goodwill was assigned to the Interconnect Technologies reporting unit. Preliminary indefinite-lived intangible assets of $9.1 million represent acquired trade names.  The $135.1 million value preliminarily allocated to definite-lived intangible assets consists of $111.4 million of customer relationships with preliminary useful lives ranging from 17 to 18 years, $23.5 million of acquired technology with preliminary useful lives ranging from 9 to 11 years, and a $0.2 million non-compete agreement with a preliminary useful life of 5 years.

 

Determination of final purchase price and residual fair value assigned to goodwill is pending finalization of the working capital settlement in accordance with the purchase agreement.  The Company has also recorded deferred tax liabilities related to the property, plant and equipment and intangible assets as of the December 17, 2012 closing date.

 

Hertalan Holding B.V.

 

On March 9, 2012, the Company acquired 100% of the equity of Hertalan Holding B.V. (“Hertalan”) for a total cash purchase price of €37.3 million, or $48.9 million, net of €0.1 million, or $0.1 million, cash acquired.  The Company funded the acquisition with borrowings under its $600 million senior unsecured revolving credit facility (the “Facility”) and cash on hand.  See Note 15 for further information regarding borrowings.  The acquisition of Hertalan strengthens the Company’s ability to efficiently serve European customers in the EPDM roofing market in Europe with local manufacturing and established distribution channels.  Hertalan operates within the Construction Materials segment.

 

The following table summarizes the consideration transferred to acquire Hertalan and the allocation among the assets acquired and liabilities assumed. The acquisition has been accounted for using the acquisition method of accounting which requires that the consideration be allocated to the acquired assets and assumed liabilities based on their acquisition date fair values with the remainder allocated to goodwill. 

 

 

 

 

 

Measurement

 

 

 

 

 

Preliminary

 

Period

 

Final

 

 

 

Allocation

 

Adjustments

 

Allocation

 

 

 

 

 

Twelve Months

 

 

 

 

 

As of

 

Ended

 

As of

 

(in millions)

 

3/31/2012

 

3/9/2013

 

3/9/2013

 

 

 

 

 

 

 

 

 

Total cash consideration transferred

 

$

49.3

 

$

(0.3

)

$

49.0

 

 

 

 

 

 

 

 

 

Recognized amounts of identifiable assets acquired and liabilities assumed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash & cash equivalents

 

$

0.1

 

$

 

$

0.1

 

Receivables

 

3.7

 

 

3.7

 

Inventories

 

10.5

 

(1.0

)

9.5

 

Prepaid expenses and other current assets

 

0.2

 

 

0.2

 

Property, plant and equipment

 

13.0

 

(0.1

)

12.9

 

Definite-lived intangible assets

 

9.9

 

4.8

 

14.7

 

Indefinite-lived intangible assets

 

2.6

 

5.4

 

8.0

 

Other long-term assets

 

0.3

 

 

0.3

 

Accounts payable

 

(3.3

)

 

(3.3

)

Accrued expenses

 

(2.5

)

 

(2.5

)

Long-term debt

 

(1.3

)

 

(1.3

)

Deferred tax liabilities

 

(4.4

)

(2.3

)

(6.7

)

Other long-term liabilities

 

(0.1

)

 

(0.1

)

 

 

 

 

 

 

 

 

Total identifiable net assets

 

28.7

 

6.8

 

35.5

 

 

 

 

 

 

 

 

 

Goodwill

 

$

20.6

 

$

(7.1

)

$

13.5

 

 

 

 

 

 

 

 

 

 

The goodwill recognized in the acquisition of Hertalan is attributable to the workforce of Hertalan, the solid financial performance of this leading manufacturer of EPDM roofing and waterproofing systems and the significant strategic value of the business to Carlisle. Hertalan provides Carlisle with a solid manufacturing and knowledge base for EPDM roofing products in Europe and provides an established distribution network throughout Europe, both of which enhance Carlisle’s goal of expanding its global presence. The European market shows favorable trends towards EPDM roofing applications and Carlisle can provide additional product development and other growth resources to Hertalan.  Goodwill arising from the acquisition of Hertalan is not deductible for income tax purposes.  All of the goodwill was assigned to the Construction Materials reporting unit. Indefinite-lived intangible assets of $8.0 million represent acquired trade names.  The $14.7 million value allocated to definite-lived intangible assets represents customer relationships with useful lives of 9 years.

 

The Company has also recorded deferred tax liabilities related to the property, plant and equipment and intangible assets as of the March 9, 2012 closing date.

 

2011 Acquisitions

 

Tri-Star Electronics International, Inc.

 

On December 2, 2011, the Company acquired 100% of the equity of TSEI Holdings, Inc. (“Tri-Star”) for a total cash purchase price of $284.8 million, net of $4.5 million cash acquired.  The total cash purchase price includes a $0.4 million purchase price adjustment during the three months ended March 31, 2012.  The Company funded the acquisition with borrowings under the Facility.  See Note 15 for further information regarding borrowings.  The acquisition of Tri-Star adds capabilities and technology to strengthen the Company’s interconnect products business by expanding its product and service range to its customers.  Tri-Star operates within the Interconnect Technologies segment.

 

The following table summarizes the consideration transferred to acquire Tri-Star and the allocation among the assets acquired and liabilities assumed. The acquisition has been accounted for using the acquisition method of accounting which that the consideration be allocated to the acquired assets and assumed liabilities based on their acquisition date fair values with the remainder allocated to goodwill.

 

 

 

 

 

Measurement

 

 

 

 

 

Preliminary

 

Period

 

Final

 

 

 

Allocation

 

Adjustments

 

Allocation

 

 

 

 

 

Twelve Months

 

 

 

 

 

As of

 

Ended

 

As of

 

(in millions)

 

12/31/2011

 

12/2/2012

 

12/2/2012

 

 

 

 

 

 

 

 

 

Total cash consideration transferred

 

$

288.9

 

$

0.4

 

$

289.3

 

 

 

 

 

 

 

 

 

Recognized amounts of identifiable assets acquired and liabilities assumed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash & cash equivalents

 

$

4.5

 

$

 

$

4.5

 

Receivables

 

14.0

 

 

14.0

 

Inventories

 

22.8

 

 

22.8

 

Prepaid expenses and other current assets

 

5.6

 

 

5.6

 

Property, plant and equipment

 

15.4

 

(2.1

)

13.3

 

Definite-lived intangible assets

 

112.0

 

9.5

 

121.5

 

Indefinite-lived intangible assets

 

28.0

 

(8.6

)

19.4

 

Other long-term assets

 

0.1

 

 

0.1

 

Accounts payable

 

(6.5

)

 

(6.5

)

Accrued expenses

 

(4.4

)

 

(4.4

)

Deferred tax liabilities

 

(58.9

)

3.4

 

(55.5

)

Other long-term liabilities

 

(0.4

)

 

(0.4

)

 

 

 

 

 

 

 

 

Total identifiable net assets

 

132.2

 

2.2

 

134.4

 

 

 

 

 

 

 

 

 

Goodwill

 

$

156.7

 

$

(1.8

)

$

154.9

 

 

The goodwill recognized in the acquisition of Tri-Star is attributable to the workforce of Tri-Star, the consistent financial performance of this complementary supplier of high-reliability interconnect products to leading aerospace, avionics and electronics companies and the enhanced scale that Tri-Star brings to the Company.  Tri-Star brings additional high-end connector products and qualified positions to serve the Company’s existing commercial aerospace and industrial customers.  Tri-Star will also supply the Company with efficient machining and plating processes that will lower costs and improve product quality.  Favorable trends in the commercial aerospace markets and increasing electronic content in several industrial end markets provide a solid growth platform for the Interconnect Technologies segment. Goodwill arising from the acquisition of Tri-Star is not deductible for income tax purposes.  All of the goodwill was assigned to the Interconnect Technologies segment. Indefinite-lived intangible assets of $19.4 million represent acquired trade names.  The $121.5 million value allocated to definite-lived intangible assets consists of $94.8 million of customer relationships with useful lives ranging from 12 to 21 years, $23.2 million of acquired technology with useful lives of 16 years, $2.5 million of non-compete agreements with useful lives ranging from 3 to 5 years, and $1.0 million of customer certifications and approvals with useful lives of 3 years.

 

The Company has also recorded deferred tax liabilities related to the property, plant and equipment and intangible assets as of the December 2, 2011 closing date.

 

PDT Phoenix GmbH

 

On August 1, 2011, the Company acquired 100% of the equity of PDT Phoenix GmbH (“PDT”) for €77.0 million, or $111.0 million, net of €5.3 million, or $7.6 million, cash acquired. Of the €82.3 million, or $118.6 million gross purchase price, €78.7 million, or $113.4 million, was paid in cash initially funded with borrowings under the Facility and cash on hand.  PDT is a leading manufacturer of EPDM-based (rubber) roofing membranes and industrial components serving European markets. The acquisition of PDT provides a platform to serve the European market for single-ply roofing systems, and expands the Company’s growth internationally. PDT operates within the Construction Materials segment.

 

The agreement to acquire PDT provided for contingent consideration based on future earnings.  The fair value of contingent consideration recognized at the acquisition date was €3.6 million, or $5.2 million, and was estimated using a discounted cash flow model based on financial projections of the acquired company.  See Note 10 for further information regarding settlement of the contingent consideration in the third quarter of 2013.

 

The purchase price of PDT included certain assets of the PDT Profiles business, which the Company sold on January 2, 2012 for €17.1 million, or $22.1 million.  The PDT Profiles business was classified as held for sale at the date of acquisition and on the Company’s consolidated balance sheet as of December 31, 2011.

 

The following table summarizes the consideration transferred to acquire PDT and the allocation among the assets acquired and liabilities assumed. The acquisition has been accounted for using the acquisition method of accounting which requires that the consideration be allocated to the acquired assets and assumed liabilities based on their acquisition date fair values with the remainder allocated to goodwill.

 

 

 

 

 

Measurement

 

 

 

 

 

Preliminary

 

Period

 

Final

 

 

 

Allocation

 

Adjustments

 

Allocation

 

 

 

 

 

Twelve Months

 

 

 

 

 

As of

 

Ended

 

As of

 

(in millions)

 

12/31/2011

 

8/1/2012

 

8/1/2012

 

Consideration transferred:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash consideration

 

$

113.4

 

$

 

$

113.4

 

Contingent consideration

 

5.2

 

 

5.2

 

Total cash consideration transferred

 

$

118.6

 

$

 

$

118.6

 

 

 

 

 

 

 

 

 

Recognized amounts of identifiable assets acquired and liabilities assumed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash & cash equivalents

 

$

7.6

 

$

 

$

7.6

 

Receivables

 

12.2

 

 

12.2

 

Inventories

 

10.5

 

 

10.5

 

Prepaid expenses and other current assets

 

0.8

 

 

0.8

 

Current assets held for sale

 

3.6

 

 

3.6

 

Property, plant and equipment

 

3.4

 

 

3.4

 

Definite-lived intangible assets

 

57.1

 

 

57.1

 

Indefinite-lived intangible assets

 

6.9

 

 

6.9

 

Other long-term assets

 

0.1

 

 

0.1

 

Non-current assets held for sale

 

21.6

 

(0.6

)

21.0

 

Accounts payable

 

(9.0

)

 

(9.0

)

Accrued expenses

 

(1.2

)

 

(1.2

)

Deferred tax liabilities

 

(21.5

)

 

(21.5

)

Other long-term liabilities

 

(3.3

)

 

(3.3

)

 

 

 

 

 

 

 

 

Total identifiable net assets

 

88.8

 

(0.6

)

88.2

 

 

 

 

 

 

 

 

 

Goodwill

 

$

29.8

 

$

0.6

 

$

30.4

 

 

The purchase price allocation reflects updated fair value estimates for assets acquired and liabilities assumed.  The amount of goodwill recognized in the acquisition of PDT is attributable to the workforce of PDT, the solid financial performance of this leading manufacturer of single-ply roofing and waterproofing systems and the significant strategic value of the business to Carlisle. PDT provides Carlisle with a solid manufacturing and knowledge base for single-ply roofing products in Europe and provides an established distribution network throughout Europe, both of which enhance Carlisle’s goal of expanding its global presence. The European market shows favorable trends towards single-ply roofing applications and Carlisle can provide additional product development and other growth resources to PDT.  Goodwill arising from the acquisition of PDT is not deductible for income tax purposes.  All of the goodwill was assigned to the Construction Materials segment. Indefinite-lived intangible assets of $6.9 million represent acquired trade names.  Of the $57.1 million value allocated to definite-lived intangible assets, approximately $33.3 million was allocated to patents, with useful lives ranging from 10 to 20 years, and $23.8 million was allocated to customer relationships, with useful lives of 19 years.

 

The Company has also recorded deferred tax liabilities related to the property, plant and equipment and intangible assets as of the August 1, 2011 closing date.

Discontinued Operations and Assets Held for Sale
Discontinued Operations and Assets Held for Sale

Note 5—Discontinued Operations and Assets Held for Sale

 

For the three months ended September 30, 2013, the Company  had no income before income taxes from discontinued operations. For the nine months ended September 30, 2013, the Company had a loss before income taxes of $0.2 million pertaining primarily to legacy workers compensation claims.

 

As of September 30, 2013, the Company classified CCM’s Kent, WA facility and related assets as held-for-sale following the relocation of operations to Puyallup, WA.  The disposal group includes only long-lived tangible assets with a net book value of $3.9 million.

 

In the third quarter of 2012, the Company announced plans to restructure certain of CFS’s manufacturing and distribution operations.  As of September 30, 2013, assets held for sale includes $0.3 million of long-lived tangible assets related to the Zevenaar, The Netherlands distribution center.  On September 30, 2013, the Company completed the sale of Reno, NV long-lived tangible assets for $6.2 million, recognizing a gain of $1.0 million.

 

On January 2, 2012, the Company completed the sale of the PDT Profiles business for €17.1 million, or $22.1 million.  The Company had acquired all of the equity of PDT on August 1, 2011 (see Note 4).  Included with the acquisition were certain assets associated with the PDT Profiles business, which the Company classified as held for sale at the date of acquisition.  No gain or loss was recognized upon the sale of the PDT Profiles business.

Exit and Disposal Activities
Exit and Disposal Activities

Note 6—Exit and Disposal Activities

 

The following table represents the effect of exit and disposal activities related to continuing operations during the three and nine months ended September 30, 2013 and 2012, respectively:

 

 

 

Three Months Ended September
30,

 

Nine Months Ended September
30,

 

(in millions)

 

2013

 

2012

 

2013

 

2012

 

Cost of goods sold

 

$

 

$

0.7

 

$

0.6

 

$

2.6

 

Selling and administrative expenses

 

 

0.2

 

0.1

 

 

Other expense

 

 

3.5

 

 

3.8

 

Total exit and disposal costs

 

$

 

$

4.4

 

$

0.7

 

$

6.4

 

 

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

 

 

 

Three Months Ended September
30,

 

Nine Months Ended September
30,

 

(in millions)

 

2013

 

2012

 

2013

 

2012

 

Termination benefits

 

$

 

$

0.9

 

$

0.1

 

$

2.6

 

Impairments

 

 

3.5

 

 

3.8

 

Other associated costs

 

 

 

0.6

 

 

Total exit and disposal costs

 

$

 

$

4.4

 

$

0.7

 

$

6.4

 

 

Exit and disposal accrual activities for the nine months ended September 30, 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

 

(1.9

)

 

(1.1

)

(3.0

)

Balance at September 30, 2013

 

$

 

$

 

$

0.1

 

$

0.1

 

 

Exit and disposal activities by segment were as follows:

 

 

 

Three Months Ended Sepember 30,

 

Nine Months Ended Sepember 30,

 

(in millions)

 

2013

 

2012

 

2013

 

2012

 

Total by segment

 

 

 

 

 

 

 

 

 

Carlisle Construction Materials

 

$

 

$

 

$

 

$

0.3

 

Carlisle Brake & Friction

 

 

 

 

0.1

 

Carlisle FoodService Products

 

 

4.4

 

0.4

 

4.4

 

Carlisle Transportation Products

 

 

 

0.3

 

1.6

 

Total exit and disposal costs

 

$

 

$

4.4

 

$

0.7

 

$

6.4

 

 

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 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 September 30, 2013, a $0.1 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 nine months ended September 30, 2013, the Company incurred $0.4 million of exit and disposal costs for employee termination and equipment relocation.  The Company expects no additional costs to be incurred related to this project.  On September 30, 2013, the Company completed the sale of Reno, NV long-lived tangible assets for $6.2 million, recognizing a gain of $1.0 million.

 

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 nine months ended September 30, 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.  The Company expects no additional costs to be incurred related to this project.

Stock-Based Compensation
Stock-Based Compensation

Note 7—Stock-Based Compensation

 

Stock-based compensation cost is recognized over the requisite service period, which generally equals the stated vesting period, unless the stated vesting period exceeds the date upon which an employee reaches retirement eligibility.  Pre-tax stock-based compensation expense was $2.8 million and $3.6 million for the three months ended September 30, 2013 and 2012, respectively and $13.7 million and $13.5 million for the nine months ended September 30, 2013 and 2012, respectively.

 

2008 Executive Incentive Program

 

The Company maintains an Executive Incentive Program (the “Program”) for executives and certain other employees of the Company and its operating divisions and subsidiaries. The Program was approved by shareholders on April 20, 2004 and was amended and restated effective January 1, 2012. The Program allows for awards to eligible employees of stock options, restricted stock, stock appreciation rights, performance shares and units or other awards based on Company common stock. At September 30, 2013, 3,074,840 shares were available for grant under this plan, of which 693,705 shares were available for the issuance of stock awards.

 

2005 Nonemployee Director Equity Plan

 

The Company also maintains the Nonemployee Director Equity Plan (the “Plan”) for members of its Board of Directors, with the same terms and conditions as the Program. At September 30, 2013, 267,466 shares were available for grant under this plan, of which 37,466 shares were available for the issuance of stock awards. Members of the Board of Directors that receive stock-based compensation are treated as employees for accounting purposes.

 

Grants

 

For the nine months ended September 30, 2013, the Company awarded 283,975 stock options, 71,255 restricted stock awards, 71,255 performance share awards and 11,592 restricted stock units with an aggregate grant-date fair value of approximately $16.9 million to be expensed over the requisite service period for each award.

 

Stock Option Awards

 

Effective 2008, options issued under these plans vest one-third on the first anniversary of grant, one-third on the second anniversary of grant and the remaining one-third on the third anniversary of grant. All options have a maximum term life of 10 years. Shares issued to cover options under the Program and the Plan may be issued from shares held in treasury, from new issuances of shares, or a combination of the two.

 

Pre-tax share-based compensation expense related to stock options was $1.2 million and $2.1 million for the three months ended September 30, 2013 and 2012, respectively, and $3.6 million and $5.6 million for the nine months ended September 30, 2013 and 2012, respectively.

 

The Company utilizes the Black—Scholes—Merton (“BSM”) option pricing model to determine the fair value of its stock option awards. The BSM relies on certain assumptions to estimate an option’s fair value. The weighted average assumptions used in the determination of fair value for stock option awards in 2013 and 2012 were as follows:

 

 

 

2013

 

2012

 

Expected dividend yield

 

1.2

%

1.5

%

Expected life in years

 

5.71

 

5.78

 

Expected volatility

 

32.2

%

36.0

%

Risk-free interest rate

 

1.0

%

0.9

%

Weighted average fair value

 

$

17.58

 

$

14.57

 

 

The expected life of options is based on the assumption that all outstanding options will be exercised at the midpoint of the valuation date and the option expiration date. The expected volatility is based on historical volatility as well as implied volatility of the Company’s options. The risk free interest rate is based on rates of U.S. Treasury issues with a remaining life equal to the expected life of the option. The expected dividend yield is based on the projected annual dividend payment per share, divided by the stock price at the date of grant.

 

Restricted Stock Awards

 

Restricted stock awarded under the Program is generally released to the recipient after a period of three years; however, 56,700 shares awarded to executive management in February 2008 vested ratably over five years.  The $64.80 grant date fair value of the 2013 restricted stock awards, which are released to the recipient after a period of three years, is based on the closing market price of the stock on the date of grant.

 

Performance Share Awards

 

The performance shares vest based on the employee rendering three years of service to the Company, and the attainment of a market condition over the performance period, which is based on the Company’s relative total shareholder return versus the S&P Midcap 400 Index® over a pre-determined time period as determined by the Compensation Committee of the Board of Directors.  The grant date fair value of the 2013 performance shares of $91.33 was estimated using a Monte-Carlo simulation approach based on a three year measurement period.  Such approach entails the use of assumptions regarding the future performance of the Company’s stock and those of the S&P Midcap 400 Index®.  Those assumptions include expected volatility, risk-free interest rates, correlation coefficients and dividend reinvestment.  Dividends accrue on the performance shares during the performance period and are to be paid in cash based upon the number of awards ultimately earned. The Company expenses the compensation cost associated with the performance awards on a straight-line basis over the vesting period of three years.

 

Restricted Stock Units

 

The restricted stock units awarded to eligible directors are fully vested and will be paid in shares of Company common stock after the director ceases to serve as a member of the Board, or if earlier, upon a change in control of the Company.  The $64.80 grant date fair value of the 2013 restricted stock units is based on the closing market price of the stock on February 6, 2013, the date of the grant.

 

Deferred Compensation

 

Certain employees are eligible to participate in the Company’s Non-qualified Deferred Compensation Plan (the “Deferred Compensation Plan”).  In addition to the ability to defer a portion of their cash compensation, participants may elect to defer all or part of their stock-based compensation.  Company stock held for future issuance of vested awards is classified as Deferred compensation equity in the condensed consolidated balance sheets and is recorded at grant date fair value.

Income Taxes
Income Taxes

Note 8Income Taxes

 

The effective income tax rate on continuing operations for the nine months ended September 30, 2013 was 26.5% compared to an effective income tax rate of 33.2% for the nine months ended September 30, 2012.  The decrease in the year-to-date tax rate is primarily due to a tax election made in a foreign jurisdiction that resulted in an increase in the tax basis of certain assets with a corresponding elimination of a deferred tax liability.  The net tax impact of the transaction resulted in an $11.8 million benefit in the first six months of the year.  The year-to-date rate also decreased because of tax legislation passed in January 2013 related to taxation of foreign earned income and research and development expenditures.  The tax impact of the current year impairment of the goodwill of Carlisle Transportation Products is included in the estimated annual effective tax rate rather than as a discrete item in the second quarter of 2013.

 

The year-to-date effective tax rate of 26.5% varies from the United States statutory rate of 35.0% primarily due to the foreign transaction discussed above, the January 2013 tax legislation, the deduction for U.S. production activities, and earnings in foreign jurisdictions taxed at rates lower than the U.S. federal rate.  The effective tax rate for the full year is expected to increase to 30% as the impact of the aforementioned $11.8 million discrete tax benefit has a lower overall impact on the effective tax rate on full year earnings before taxes.

Earnings Per Share
Earnings Per Share

Note 9—Earnings Per Share

 

The Company’s unvested restricted shares and restricted stock units contain nonforfeitable rights to dividends and, therefore, are considered participating securities for purposes of computing earnings per share pursuant to the two-class method. The computation below of earnings per share excludes the income attributable to the unvested restricted shares and restricted stock units from the numerator and excludes the dilutive impact of those underlying shares from the denominator.  Stock options are included in the calculation of diluted earnings per share utilizing the treasury stock method and performance share awards are included in the calculation of diluted earnings per share using the contingently issuable method.  Neither is considered to be a participating security as they do not contain non-forfeitable dividend rights.

 

The following reflects the Income from continuing operations and share data used in the basic and diluted earnings per share computations using the two-class method:

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

(in millions except share amounts)

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

76.6

 

$

69.7

 

$

140.1

 

$

219.2

 

Less: dividends declared - common stock outstanding, unvested restricted shares and restricted share units

 

(14.1

)

(12.6

)

(39.7

)

(35.1

)

Undistributed earnings

 

62.5

 

57.1

 

100.4

 

184.1

 

Percent allocated to common shareholders (1)

 

99.5

%

99.4

%

99.5

%

99.4

%

 

 

62.2

 

56.8

 

99.9

 

183.0

 

Add: dividends declared - common stock

 

14.0

 

12.5

 

39.5

 

34.9

 

Numerator for basic and diluted EPS

 

$

76.2

 

$

69.3

 

$

139.4

 

$

217.9

 

 

 

 

 

 

 

 

 

 

 

Denominator (in thousands):

 

 

 

 

 

 

 

 

 

Denominator for basic EPS: weighted-average common shares outstanding

 

63,567

 

62,708

 

63,429

 

62,347

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

Performance awards

 

374

 

448

 

374

 

448

 

Stock options

 

949

 

790

 

911

 

725

 

Denominator for diluted EPS: adjusted weighted average common shares outstanding and assumed conversion

 

64,890

 

63,946

 

64,714

 

63,520

 

 

 

 

 

 

 

 

 

 

 

Per share income from continuing operations:

 

 

 

 

 

 

 

 

 

Basic

 

$

1.20

 

$

1.11

 

$

2.19

 

$

3.50

 

Diluted

 

$

1.18

 

$

1.08

 

$

2.16

 

$

3.43

 

 

 

(1) Basic weighted-average common shares outstanding

 

63,567

 

62,708

 

63,429

 

62,347

 

Basic weighted-average common shares outstanding, unvested restricted shares expected to vest and restricted share units

 

63,892

 

63,067

 

63,755

 

62,707

 

Percent allocated to common shareholders

 

99.5

%

99.4

%

99.5

%

99.4

%

 

To calculate earnings per share for Income from discontinued operations and for Net income, the denominator for both basic and diluted earnings per share is the same as used in the above table. Income from discontinued operations and Net income were as follows:

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

(in millions except share amounts)

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations attributable to common shareholders for basic and diluted earnings per share

 

$

 

$

(0.2

)

$

(0.1

)

$

3.2

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common shareholders for basic and diluted earnings per share

 

$

76.2

 

$

69.1

 

$

139.3

 

$

221.1

 

 

 

 

 

 

 

 

 

 

 

Antidilutive stock options excluded from EPS calculation(2)

 

 

 

 

 

 

 

(2)    Represents stock options excluded from the calculation of diluted earnings per share as such options had exercise prices in excess of the weighted-average market price of the Company’s common stock during these periods. Amounts in thousands.

Fair Value Measurements
Fair Value Measurements

Note 10—Fair Value Measurements

 

Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Fair value may be measured using three levels of inputs:

 

Level 1—quoted prices in active markets for identical assets and liabilities.

 

Level 2—observable inputs other than quoted prices in active markets for identical assets and liabilities.

 

Level 3—unobservable inputs in which there is little or no market data available, which requires the reporting entity to develop its own assumptions.

 

Recurring Measurements

 

The fair value of the Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows:

 

 

 

 

 

Quoted Prices

 

 

 

 

 

 

 

 

 

In Active

 

Significant

 

 

 

 

 

 

 

Markets for

 

Other

 

Significant

 

 

 

Balance at

 

Identical

 

Observable

 

Unobservable

 

 

 

September 30

 

Assets

 

Inputs

 

Inputs

 

(in millions)

 

2013

 

Level 1

 

Level 2

 

Level 3

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

332.4

 

$

332.4

 

$

 

$

 

Short-term investments

 

1.3

 

1.3

 

 

 

Commodity swap agreements

 

 

 

 

 

Foreign currency forward contracts

 

0.4

 

 

0.4

 

 

Total assets measured at fair value

 

$

334.1

 

$

333.7

 

$

0.4

 

$

 

 

 

 

 

 

 

 

 

 

 

Commodity swap agreements

 

$

0.8

 

$

 

$

0.8

 

$

 

Contingent consideration

 

9.5

 

 

 

9.5

 

Total liabilities measured at fair value

 

$

10.3

 

$

 

$

0.8

 

$

9.5

 

 

Cash and cash equivalents include $3.4 million in money market accounts for the Company’s deferred compensation program.  Short-term investments of $1.3 million at September 30, 2013 consist of investments held in mutual funds for the Company’s deferred compensation program and are classified in the condensed consolidated balance sheet at September 30, 2013 in Prepaid expenses and other current assets.

 

Foreign exchange forward contracts at September 30, 2013 relate to contracts held for purposes of mitigating the Company’s exposure to fluctuations in foreign exchange rates, resulting from assets or liabilities that are held by certain of its operating subsidiaries in currencies other than the subsidiary’s functional currency.  Such forward contracts are valued at fair value using observable market inputs such as forward prices and spot prices of the underlying exchange rate pair. Based on these inputs, the derivative assets are classified within Level 2 of the valuation hierarchy.  The Company has not designated these forward contracts as cash flow hedges and, accordingly, recognizes associated changes in fair value of the forwards through Other income (expense).  At September 30, 2013 the fair values of contracts based on the Canadian Dollar was a $0.4 million asset.  The fair values of these contracts are recorded within Prepaid expenses and other current assets in the condensed consolidated balance sheet as of September 30, 2013 as none of the contract terms exceed one year from the balance sheet date.

 

Commodity swap agreements at September 30, 2013 relate to swap agreements held for purposes of mitigating the Company’s exposure to fluctuations in the prices of silver and copper, which are key raw materials within the Interconnect Technologies segment.  Such swaps are valued using third-party valuation models that measure fair value using observable market inputs such as forward prices and spot prices of the underlying commodities. Based on these inputs, the derivative assets and liabilities are classified within Level 2 of the valuation hierarchy.  The Company has not designated these swaps as cash flow hedges and, accordingly, recognizes associated changes in fair value of the swaps through Other (income) expense.  The fair value of these swaps is recorded within Accrued expenses in the condensed consolidated balance sheet as of September 30, 2013 as none of the swap terms exceed one year from the balance sheet date.

 

Contingent consideration represents fair value of the earn-out associated with the purchase of PDT.  During the three months ended September 30, 2013, the Company agreed to settle the earn-out for €7.0 million.  The balance of $9.5 million at September 30, 2013 represents the U.S. Dollar value of the settlement as of that date and is recorded within Accrued expenses in the condensed consolidated balance sheet as the payout is expected to occur during the fourth quarter of 2013.  See Note 4 for further information regarding the PDT acquisition.

 

 

 

 

 

Quoted Prices

 

 

 

 

 

 

 

 

 

In Active

 

Significant

 

 

 

 

 

 

 

Markets for

 

Other

 

Significant

 

 

 

Balance at

 

Identical

 

Observable

 

Unobservable

 

 

 

December 31,

 

Assets

 

Inputs

 

Inputs

 

(in millions)

 

2012

 

Level 1

 

Level 2

 

Level 3

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

112.5

 

$

112.5

 

$

 

$

 

Short-term investments

 

0.6

 

0.6

 

 

 

Commodity swap agreements

 

0.1

 

 

0.1

 

 

Foreign currency forward contracts

 

0.3

 

 

0.3

 

 

Total assets measured at fair value

 

$

113.5

 

$

113.1

 

$

0.4

 

$

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

9.9

 

$

 

$

 

$

9.9

 

Total liabilities measured at fair value

 

$

9.9

 

$

 

$

 

$

9.9

 

 

Cash and cash equivalents at December 31, 2012 include $1.6 million in money market accounts for the Company’s Deferred Compensation Plan.  Short-term investments of $0.6 million at December 31, 2012 consist of investments held in mutual funds for the Company’s deferred compensation program and are classified in the condensed consolidated balance sheet at December 31, 2012 in Prepaid expenses and other current assets.  Commodity swap agreements relate to swap agreements held for purposes of mitigating the Company’s exposure to fluctuations in the prices of silver and copper, which are key raw materials within the Interconnect Technologies segment and are classified in the condensed consolidated balance sheet at December 31, 2012 in Prepaid expenses and other current assets.  Foreign exchange forward contracts relate to contracts held for purposes of mitigating the Company’s exposure to fluctuations in foreign exchange rates, resulting from assets or liabilities that are held by certain of its operating subsidiaries in currencies other than the subsidiary’s functional currency and are classified in the condensed consolidated balance sheet at December 31, 2012 in Prepaid expenses and other current assets.  Contingent consideration represents fair value of the earn-out associated with the purchase of PDT and was estimated using a discounted cash flow model based on financial projections of the acquired company.

 

Non-Recurring Measurements

 

During the nine months ended September 30, 2013, the Transportation Products segment recognized a goodwill impairment charge of $100.0 million, reducing the carrying value of CTP’s goodwill to $0.  The estimated fair value of goodwill was determined using the residual value method as required by ASC 350, Goodwill and Other Intangible Assets.  This estimate was based on fair value determinations using Level 3 inputs.  See Note 13 for information regarding asset impairment within the Transportation Products segment.

 

See Note 4 for information regarding assets acquired and liabilities assumed in the Thermax/Raydex and Hertalan acquisitions measured at fair value at initial recognition.

Inventories
Inventories

Note 11—Inventories

 

The components of inventories at September 30, 2013 and December 31, 2012 were as follows:

 

 

 

September 30,

 

December 31,

 

(in millions)

 

2013

 

2012

 

 

 

 

 

 

 

Finished goods

 

$

317.7

 

$

340.0

 

Work-in-process

 

56.8

 

55.8

 

Raw materials

 

146.8

 

169.3

 

Capitalized variances

 

(1.1

)

8.6

 

Reserves

 

(38.9

)

(35.7

)

Inventories

 

$

481.3

 

$

538.0

 

Property, Plant and Equipment
Property, Plant and Equipment

Note 12—Property, Plant and Equipment

 

The components of property, plant and equipment at September 30, 2013 and December 31, 2012 were as follows:

 

 

 

September 30,

 

December 31,

 

(in millions)

 

2013

 

2012

 

 

 

 

 

 

 

Land

 

$

49.0

 

$

45.8

 

Buildings and leasehold improvements

 

338.1

 

311.9

 

Machinery and equipment

 

880.0

 

845.2

 

Projects in progress

 

59.7

 

69.9

 

 

 

 

 

 

 

 

 

1,326.8

 

1,272.8

 

Accumulated depreciation

 

(681.5

)

(635.7

)

Property, plant and equipment, net

 

$

645.3

 

$

637.1

 

 

Property, plant and equipment at December 31, 2012 includes assets acquired from Thermax/Raydex and Hertalan recorded at estimated fair value based on preliminary valuation studies.  See Note 4 for further information regarding these acquisitions.

Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets

Note 13—Goodwill and Other Intangible Assets

 

The changes in the carrying amount of goodwill for the nine months ended September 30, 2013 were as follows:

 

 

 

Construction

 

Transportation

 

Brake &

 

Interconnect

 

FoodService

 

Disc.

 

 

 

(in millions)

 

Materials

 

Products

 

Friction

 

Technologies

 

Products

 

Ops

 

Total

 

Gross balance at January 1, 2013

 

$

127.2

 

$

155.5

 

$

226.7

 

$

444.6

 

$

60.3

 

$

47.4

 

$

1,061.7

 

Currency translation

 

1.0

 

 

 

(0.2

)

 

 

0.8

 

Gross balance at September 30, 2013

 

128.2

 

155.5

 

226.7

 

444.4

 

60.3

 

47.4

 

1,062.5

 

Accumulated impairment losses

 

 

(155.5

)

 

 

 

(47.4

)

(202.9

)

Net balance at September 30, 2013

 

$

128.2

 

$

 

$

226.7

 

$

444.4

 

$

60.3

 

$

 

$

859.6

 

 

Goodwill Impairment

 

During the three months ended June 30, 2013, the Company’s Transportation Products reporting unit recognized a goodwill impairment loss of $100.0 million due to a decline in the reporting unit’s estimated fair value relative to its carrying value.  Fair value was based on an income approach utilizing the discounted cash flow method.  The decline in the reporting unit’s estimated fair value was primarily driven by a rise in the underlying interest rates used to determine the discount rate utilized in the discounted cash flow method.  This rise in interest rates occurred substantially in the final month of the second quarter of 2013.  Given the timing of events leading to the impairment, as of June 30, 2013, the impairment loss was estimated.  ASC 350, Intangibles — Goodwill and Other requires that goodwill impairment be based on the implied value of a reporting unit’s goodwill based on the residual method in the same manner as goodwill is recognized in a business combination under ASC 805, Business Combinations.  Under the residual method, the implied fair value of the reporting unit’s goodwill is equal to the difference between the reporting unit’s fair value and the fair value of the reporting unit’s assets and liabilities, both recognized and unrecognized.  During the three months ended September 30, 2013, management completed the process of determining the fair value of CTP’s assets and liabilities, including identifiable intangible assets that are not currently recognized, nor will be recognized, in CTP’s carrying value.  Finalization of the impairment analysis did not result in any adjustments to the initial estimate of impairment loss.

 

The Company’s Other intangible assets, net at September 30, 2013, were as follows:

 

 

 

Acquired

 

Accumulated

 

Net Book

 

(in millions)

 

Cost

 

Amortization

 

Value

 

 

 

 

 

 

 

 

 

Assets subject to amortization:

 

 

 

 

 

 

 

Patents

 

$

134.0

 

$

(26.9

)

$

107.1

 

Customer Relationships

 

442.3

 

(88.8

)

353.5

 

Other

 

20.6

 

(11.2

)

9.4

 

Assets not subject to amortization:

 

 

 

 

 

 

 

Trade names

 

120.4

 

 

120.4

 

Other intangible assets, net

 

$

717.3

 

$

(126.9

)

$

590.4

 

 

The Company’s Other intangible assets, net at December 31, 2012, were as follows:

 

 

 

Acquired

 

Accumulated

 

Net Book

 

(in millions)

 

Cost

 

Amortization

 

Value

 

 

 

 

 

 

 

 

 

Assets subject to amortization:

 

 

 

 

 

 

 

Patents

 

$

133.2

 

$

(20.0

)

$

113.2

 

Customer Relationships

 

441.4

 

(68.3

)

373.1

 

Other

 

20.9

 

(9.7

)

11.2

 

Assets not subject to amortization:

 

 

 

 

 

 

 

Trade names

 

120.0

 

 

120.0

 

Other intangible assets, net

 

$

715.5

 

$

(98.0

)

$

617.5

 

 

Estimated amortization expense for the remainder of 2013 and the next four years is as follows: $9.2 million remaining in 2013, $37.2 million in 2014, $36.6 million in 2015, $35.6 million in 2016, and $35.4 million in 2017.

 

The net carrying values of the Company’s Other intangible assets by reportable segment were as follows:

 

 

 

September 30,

 

December 31,

 

(in millions)

 

2013

 

2012

 

 

 

 

 

 

 

Carlisle Construction Materials

 

$

87.1

 

$

89.7

 

Carlisle Interconnect Technologies

 

336.1

 

353.4

 

Carlisle Brake & Friction

 

131.7

 

136.8

 

Carlisle FoodService Products

 

32.8

 

34.9

 

Carlisle Transportation Products

 

2.7

 

2.7

 

Total

 

$

590.4

 

$

617.5

 

Commitments and Contingencies
Commitments and Contingencies

Note 14—Commitments and Contingencies

 

Leases

 

The Company currently leases a portion of its manufacturing facilities, distribution centers, and equipment, some of which include scheduled rent increases stated in the lease agreement generally expressed as a stated percentage increase of the minimum lease payment over the lease term.  The Company currently has no leases that require rent to be paid based on contingent events nor has it received any lease incentive payments.  Rent expense was $21.1 million and $23.9 million for the nine months ended September 30, 2013 and 2012, respectively, inclusive of rent based on scheduled rent increases and rent holidays recognized on a straight-line basis.  Future minimum payments under the Company’s various non-cancelable operating leases are approximately $8.9 million for the remainder of 2013, $20.2 million in 2014, $16.2 million in 2015, $13.3 million in 2016, $10.3 million in 2017, and $17.1 million thereafter.

 

Purchase Obligations

 

Although the Company has entered into purchase agreements for certain key raw materials, there were no such contracts with a term exceeding one year in place at September 30, 2013.

 

Workers’ Compensation, General Liability, and Property Claims

 

The Company is self-insured for workers’ compensation, medical and dental, general liability, and property claims up to applicable retention limits. Retention limits are $1.0 million per occurrence for general liability, $0.5 million per occurrence for workers’ compensation, $0.25 million per occurrence for property, and up to $1.0 million for medical claims. The Company is insured for losses in excess of these limits.

 

The Company has accrued approximately $26.0 million and $24.1 million related to workers’ compensation claims at September 30, 2013 and December 31, 2012, respectively.  At September 30, 2013, $9.0 million and $ 17.0 million are included in Accrued expenses and Other long-term liabilities, respectively, in the condensed consolidated balance sheet.  The liability related to workers’ compensation claims, both those reported to the Company and those incurred but not yet reported, is estimated based on actuarial estimates and loss development factors and the Company’s historical loss experience.

 

Litigation

 

Over the years, the Company has been named as a defendant, along with numerous other defendants, in lawsuits in various state courts in which plaintiffs have alleged injury due to exposure to asbestos-containing brakes, which Carlisle manufactured in limited amounts between the late-1940’s and the mid-1980’s.  In addition to compensatory awards, these lawsuits may also seek punitive damages.

 

Generally, the Company has obtained dismissals or settlements of its asbestos-related lawsuits with no material effect on its financial condition, results of operations or cash flows.  The Company maintains insurance coverage that applies to the Company’s defense costs and payments of settlements or judgments in connection with asbestos-related lawsuits, excluding punitive damages.

 

At this time, the amount of reasonably possible additional asbestos claims, if any, is not material to the Company’s financial position, results of operations or operating cash flows although these matters could result in the Company being subject to monetary damages, costs or expenses, and charges against earnings in particular periods.

 

From time-to-time the Company may be involved in various other legal actions arising in the normal course of business.  In the opinion of management, the ultimate outcome of such actions, either individually or in the aggregate, will not have a material adverse effect on the consolidated financial position, results of operations for a particular period or annual operating cash flows of the Company.

 

Environmental Matters

 

The Company is subject to increasingly stringent environmental laws and regulations, including those relating to air emissions, wastewater discharges, chemical and hazardous waste management and disposal. Some of these environmental laws hold owners or operators of land or businesses liable for their own and for previous owners’ or operators’ releases of hazardous or toxic substances or wastes. Other environmental laws and regulations require the obtainment of and compliance with environmental permits. To date, costs of complying with environmental, health, and safety requirements have not been material.  The nature of the Company’s operations and its long history of industrial activities at certain of its current or former facilities, as well as those acquired, could potentially result in material environmental liabilities.

 

While the Company must comply with existing and pending climate change legislation, regulation, international treaties or accords, current laws and regulations do not have a material impact on its business, capital expenditures or financial position. Future events, including those relating to climate change or greenhouse gas regulation, could require the Company to incur expenses related to the modification or curtailment of operations, installation of pollution control equipment, or investigation and cleanup of contaminated sites.

Borrowings
Borrowings

Note 15—Borrowings

 

As of September 30, 2013 and December 31, 2012 the Company’s borrowings were as follows:

 

 

 

September 30,

 

December 31,

 

(in millions)

 

2013

 

2012

 

 

 

 

 

 

 

3.75% notes due 2022, net of unamortized discount of ($1.0) and ($1.1) respectively

 

$

349.0

 

$

348.9

 

5.125% notes due 2020, net of unamortized discount of ($0.8) and ($0.9) respectively

 

249.2

 

249.1

 

6.125% notes due 2016, net of unamortized discount of ($0.3) and ($0.4) respectively

 

149.7

 

149.6

 

Revolving credit facility

 

 

 

Industrial development and revenue bonds through 2018

 

4.5

 

4.5

 

Other, including capital lease obligations

 

0.2

 

0.4

 

Total long-term debt

 

752.6

 

752.5

 

Less current portion

 

 

 

Total long-term debt, net of current portion

 

$

752.6

 

$

752.5

 

 

Revolving Credit Facilities

 

As of September 30, 2013 the Company had $600.0 million available under its Third Amended and Restated Credit Agreement (the “Amended Credit Agreement”) administered by JPMorgan Chase Bank, N.A.  During the nine months ended September 30, 2013 there was no interest on borrowings under the revolving credit facility.

 

Uncommitted Line of Credit

 

The Company also maintains an uncommitted line of credit of which $45.0 million was available for borrowing as of September 30, 2013 and December 31, 2012.  The average interest rate on the uncommitted line of credit was 1.5% for the nine months ended September 30, 2012.  There were no borrowings under the uncommitted facility for the nine months ended September 30, 2013.

 

Covenants and Limitations

 

Under the Company’s various debt and credit facilities, the Company is required to meet various restrictive covenants and limitations, including certain net worth, cash flow ratios, and limits on outstanding debt balances held by certain subsidiaries. The Company was in compliance with all covenants and limitations as of September 30, 2013 and December 31, 2012.

 

Other Matters

 

Cash payments for interest were $22.0 million and $19.0 million in the nine months ended September 30, 2013 and 2012, respectively. Interest expense, net is presented net of interest income of $0.3 million and $0.3 million in the nine months ended September 30, 2013 and 2012, respectively.

 

At September 30, 2013, the fair value of the Company’s par value $350 million, 3.75% senior notes due 2022, $250 million, 5.125% senior notes due 2020, and par value $150 million, 6.125% senior notes due 2016, using the Level 2 inputs, was approximately $333.2 million, $264.9 million and $165.7  million, respectively. Fair value is estimated based on current yield rates plus the Company’s estimated credit spread available for financings with similar terms and maturities.

Retirement Plans
Retirement Plans

Note 16—Retirement Plans

 

Defined Benefit Plans

 

The Company maintains defined benefit retirement plans for certain employees. Benefits are based primarily on years of service and earnings of the employee. The Company recognizes the funded status of its defined benefit pension plans in the condensed consolidated balance sheets. The funded status is the difference between the retirement plans’ projected benefit obligation and the fair value of the retirement plans’ assets as of the measurement date.

 

Post-retirement Welfare Plans

 

The Company also has a limited number of unfunded post-retirement welfare programs. The Company’s liability for post-retirement medical benefits is limited to a maximum obligation; therefore, the Company’s liability is not materially affected by an assumed health care cost trend rate.

 

Components of net periodic benefit cost were as follows:

 

 

 

Pension Benefits

 

Post-retirement Benefits

 

 

 

Three Months Ended

 

Nine Months Ended

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

September 30,

 

September 30,

 

(in millions)

 

2013

 

2012

 

2013

 

2012

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

1.3

 

$

1.4

 

$

3.9

 

$

3.5

 

$

 

$

 

$

 

$

 

Interest cost

 

1.9

 

3.8

 

5.8

 

8.7

 

 

0.1

 

0.1

 

0.3

 

Expected return on plan assets

 

(3.1

)

(5.3

)

(9.2

)

(12.4

)

 

 

 

 

Amortization of unrecognized loss

 

1.4

 

1.3

 

4.2

 

3.9

 

0.1

 

 

0.2

 

 

Net periodic benefit cost

 

$

1.5

 

$

1.2

 

$

4.7

 

$

3.7

 

$

0.1

 

$

0.1

 

$

0.3

 

$

0.3

 

 

The Company made no contributions to the pension plans during the three and nine months ended September 30, 2013, respectively.  No minimum contributions to the pension plans are required in 2013.  However, during 2013 the Company expects to pay approximately $1.1 million in participant benefits under the executive supplemental and director plans.  The Company expects to make discretionary contributions between $0.0 and $4.0 million to its other pension plans in 2013.

 

Defined Contribution Plans

 

The Company maintains defined contribution plans covering a significant portion of its employees. Expenses for the plans were approximately $2.9 million and $2.7 million for the three months ended September 30, 2013 and 2012, respectively and $9.4 million and $8.8 million for the nine months ended September 30, 2013 and 2012, respectively. Full year contributions in 2013 are expected to approximate $12.3 million.

 

ESOP Plan

 

The Company sponsors an employee stock ownership plan (“ESOP”) as part of one of its existing defined contribution plans. Costs for the ESOP are included in the previously discussed expenses. The ESOP is available to eligible domestic employees and includes a match of contributions made by plan participants to the savings plan up to a maximum of 4.0% of a participant’s eligible compensation, divided between cash and an employee-directed election of the Company’s common stock, not to exceed 50% of the total match, for non-union employees. Union employees’ match may vary and is based on negotiated union agreements. Participants are not allowed to direct savings plan contributions to an investment in the Company’s common stock. Total shares held by the ESOP were 1.7 million and 1.8 million at September 30, 2013 and December 31, 2012, respectively.

Product Warranties
Product Warranties

Note 17—Product Warranties

 

The Company offers various warranty programs on its products, primarily installed roofing systems, braking products, tires and wheels, aerospace cables and assemblies, and foodservice equipment. The change in the Company’s aggregate product warranty liabilities, including accrued costs and loss reserves associated with extended product warranties, for the period ended September 30, 2013 is as follows:

 

(in millions)

 

2013

 

 

 

 

 

December 31, 2012 reserve

 

$

16.9

 

Current year provision

 

12.5

 

Current year claims

 

(13.6

)

September 30, 2013 reserve

 

$

15.8

 

 

The Company also offers separately priced extended warranty contracts on sales of certain products, the most significant being those offered on its installed roofing systems within the Construction Materials segment.  The amount of revenue recognized due to extended product warranty revenues was $4.4 million and $4.5 million for the three months ended September 30, 2013 and 2012, respectively and $12.9 million and $12.8 million for the nine months ended September 30, 2013 and 2012, respectively.

 

Product warranty deferred revenue as of September 30, 2013 and December 31, 2012 was as follows:

 

 

 

September 30,

 

December 31,

 

(in millions)

 

2013

 

2012

 

 

 

 

 

 

 

Deferred revenue

 

 

 

 

 

Current

 

$

16.7

 

$

16.8

 

Long-term

 

140.7

 

135.4

 

Deferred revenue liability

 

$

157.4

 

$

152.2

 

 

In addition to deferred revenue related to extended warranty contracts, current Deferred revenue includes $0.4 million and $0.8 million as of September 30, 2013 and December 31, 2012, respectively, related primarily to contracts on brake pads.

Other Long-Term Liabilities
Other Long-Term Liabilities

Note 18—Other Long-Term Liabilities

 

The components of Other long-term liabilities were as follows:

 

 

 

September 30,

 

December 31,

 

(in millions)

 

2013

 

2012

 

Deferred taxes and other tax liabilities

 

$

206.8

 

$

246.1

 

Pension and other post-retirement obligations

 

23.2

 

23.9

 

Long-term workers compensation

 

17.0

 

17.0

 

Deferred credits

 

5.3

 

14.4

 

Deferred compensation

 

10.8

 

7.7

 

Other

 

1.3

 

1.6

 

Total

 

$

264.4

 

$

310.7

 

 

Deferred credits consist primarily of contingent consideration for acquisitions and liabilities related to straight-line recognition of leases.

Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)

Note 19—Accumulated Other Comprehensive Income (Loss)

 

The changes in Accumulated other comprehensive loss by component for the three months ended September 30, 2013 were as follows:

 

(in millions)

 

Accrued
post-retirement
benefit liability(1)

 

Foreign
currency
translation

 

Hedging
activities(2)

 

Total

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2013

 

$

(31.7

)

$

(13.1

)

$

1.1

 

$

(43.7

)

Other comprehensive income (loss) before reclassifications

 

 

11.5

 

 

11.5

 

Amounts reclassified from accumulated other comprehensive loss

 

1.5

 

 

(0.1

)

1.4

 

Income tax expense

 

(0.6

)

 

 

(0.6

)

Net other comprehensive income (loss)

 

0.9

 

11.5

 

(0.1

)

12.3

 

Balance at September 30, 2013

 

$

(30.8

)

$

(1.6

)

$

1.0

 

$

(31.4

)

 

The changes in Accumulated other comprehensive loss by component for the three months ended September 30, 2012 were as follows:

 

 

 

Accrued

 

Foreign

 

 

 

 

 

 

 

post-retirement

 

currency

 

Hedging

 

 

 

(in millions)

 

benefit liability(1)

 

translation

 

activities(2)

 

Total

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2012

 

$

(39.1

)

$

(10.3

)

$

1.4

 

$

(48.0

)

Other comprehensive income (loss) before reclassifications

 

 

4.7

 

 

4.7

 

Amounts reclassified from accumulated other comprehensive loss

 

1.3

 

 

(0.1

)

1.2

 

Income tax expense

 

(0.5

)

 

 

(0.5

)

Net other comprehensive income (loss)

 

0.8

 

4.7

 

(0.1

)

5.4

 

Balance at September 30, 2012

 

$

(38.3

)

$

(5.6

)

$

1.3

 

$

(42.6

)

 

 

(1)    Current period amounts related to accrued post-retirement benefit liability are related to amortization of unrecognized actuarial gains and losses which is included in net periodic benefit cost for pension and other post-retirement welfare plans. See Note 16.

(2)    Current period amounts related to hedging activities are a reduction to interest expense. See Note 19 in the Company’s 2012 Annual Report on Form 10-K for more information.

 

The changes in Accumulated other comprehensive loss by component for the nine months ended September 30, 2013 were as follows:

 

 

 

Accrued

 

Foreign

 

 

 

 

 

 

 

post-retirement

 

currency

 

Hedging

 

 

 

(in millions)

 

benefit liability(1)

 

translation

 

activities(2)

 

Total

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2012

 

$

(34.1

)

$

(2.7

)

$

1.3

 

$

(35.5

)

Other comprehensive income (loss) before reclassifications

 

0.5

 

1.1

 

 

1.6

 

Amounts reclassified from accumulated other comprehensive loss

 

4.4

 

 

(0.4

)

4.0

 

Income tax expense

 

(1.6

)

 

0.1

 

(1.5

)

Net other comprehensive income (loss)

 

3.3

 

1.1

 

(0.3

)

4.1

 

Balance at September 30, 2013

 

$

(30.8

)

$

(1.6

)

$

1.0

 

$

(31.4

)

 

The changes in Accumulated other comprehensive loss by component for the nine months ended September 30, 2012

were as follows:

 

 

 

Accrued

 

Foreign

 

 

 

 

 

 

 

post-retirement

 

currency

 

Hedging

 

 

 

(in millions)

 

benefit liability(1)

 

translation

 

activities(2)

 

Total

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2011

 

$

(40.7

)

$

(5.9

)

$

1.6

 

$

(45.0

)

Other comprehensive income (loss) before reclassifications

 

 

0.3

 

 

0.3

 

Amounts reclassified from accumulated other comprehensive loss

 

3.9

 

 

(0.4

)

3.5

 

Income tax expense

 

(1.5

)

 

0.1

 

(1.4

)

Net other comprehensive income (loss)

 

2.4

 

0.3

 

(0.3

)

2.4

 

Balance at September 30, 2012

 

$

(38.3

)

$

(5.6

)

$

1.3

 

$

(42.6

)

 

 

(1)    Current period amounts related to accrued post-retirement benefit liability are related to amortization of unrecognized actuarial gains and losses which is included in net periodic benefit cost for pension and other post-retirement welfare plans. See Note 16.

(2)    Current period amounts related to hedging activities are a reduction to interest expense. See Note 19 in the Company’s 2012 Annual Report on Form 10-K for more information.

Subsequent Event
Subsequent Event

Note 20 — Subsequent Event

 

Agreement to Sell Carlisle Transportation Products

 

In October 2013, the Company entered into a definitive agreement to sell its Transportation Products business for total cash consideration of $375 million, subject to working capital and other customary adjustments. The Transportation Products disposal group consists primarily of the assets and associated liabilities of the Transportation Products segment, with certain assets and liabilities excluded in accordance with the sale agreement.  The Company expects that the sale, which is subject to customary closing conditions including regulatory clearances, is expected to close in the first quarter of 2014.

 

At September 30, 2013, the Transportation Products business did not meet the criteria to be considered held-for-sale. Beginning in the fourth quarter of 2013, in connection with the definitive agreement, the assets and associated liabilities of the Transportation Products disposal group will be considered held-for-sale and the related results of operations will be presented as discontinued operations in the Company’s consolidated financial statements.  All prior period results of operations will be retrospectively adjusted as discontinued operations.

 

Major classes of assets and associated liabilities of the Transportation Products disposal group subject to this sale are as follows:

 

 

 

September 30,

 

(in millions)

 

2013

 

 

 

 

 

Cash and cash equivalents

 

$

0.5

 

Receivables, net of allowance

 

84.0

 

Inventories

 

181.5

 

Property, plant and equipment

 

162.2

 

Other assets

 

7.4

 

Total assets

 

$

435.6

 

Current liabilities

 

84.6

 

Other liabilities

 

1.5

 

Total liabilities

 

$

86.1

 

Segment Information (Tables)
Unaudited financial information for operations by reportable segment

 

 

Three Months Ended September 30,

 

2013

 

2012

 

(in millions)

 

Sales(1)

 

EBIT

 

Sales(1)

 

EBIT

 

Carlisle Construction Materials

 

$

505.7

 

$

83.0

 

$

456.7

 

$

79.6

 

Carlisle Interconnect Technologies

 

147.8

 

24.8

 

115.0

 

18.7

 

Carlisle Brake & Friction

 

85.2

 

5.2

 

110.6

 

18.9

 

Carlisle FoodService Products

 

58.1

 

6.9

 

62.7

 

(1.2

)

Carlisle Transportation Products

 

172.0

 

13.9

 

165.2

 

7.4

 

Corporate

 

 

(10.4

)

 

(12.8

)

Total

 

$

968.8

 

$

123.4

 

$

910.2

 

$

110.6

 

 

Nine Months Ended September 30,

 

2013

 

2012

 

(in millions)

 

Sales(1)

 

EBIT

 

Assets

 

Sales(1)

 

EBIT

 

Assets

 

Carlisle Construction Materials

 

$

1,335.8

 

$

197.0

 

$

966.3

 

$

1,280.5

 

$

207.0

 

$

892.2

 

Carlisle Interconnect Technologies

 

434.7

 

65.5

 

1,028.0

 

340.5

 

52.8

 

794.4

 

Carlisle Brake & Friction

 

269.6

 

28.6

 

601.4

 

361.3

 

66.6

 

671.2

 

Carlisle FoodService Products

 

178.9

 

19.3

 

187.2

 

185.2

 

10.0

 

204.4

 

Carlisle Transportation Products

 

602.9

 

(58.4

)

446.7

 

616.3

 

47.7

 

567.1

 

Corporate

 

 

(36.0

)

367.3

 

 

(37.0

)

113.0

 

Total

 

$

2,821.9

 

$

216.0

 

$

3,596.9

 

$

2,783.8

 

$

347.1

 

$

3,242.3

 

 

 

(1) Excludes intersegment sales

Acquisitions (Tables)

 

 

 

 

 

 

Measurement

 

Revised

 

 

 

Preliminary

 

Period

 

Preliminary

 

 

 

Allocation

 

Adjustments

 

Allocation

 

 

 

 

 

Nine Months

 

 

 

 

 

As of

 

Ended

 

As of

 

(in millions)

 

12/31/2012

 

9/30/2013

 

9/30/2013

 

 

 

 

 

 

 

 

 

Total cash consideration transferred

 

$

265.6

 

$

 

$

265.6

 

 

 

 

 

 

 

 

 

Recognized amounts of identifiable assets acquired and liabilities assumed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash & cash equivalents

 

$

0.1

 

$

 

$

0.1

 

Receivables

 

14.3

 

 

14.3

 

Inventories

 

15.4

 

 

15.4

 

Prepaid expenses and other current assets

 

0.9

 

 

0.9

 

Property, plant and equipment

 

7.2

 

 

7.2

 

Definite-lived intangible assets

 

135.1

 

 

135.1

 

Indefinite-lived intangible assets

 

9.1

 

 

9.1

 

Accounts payable

 

(12.0

)

 

(12.0

)

Accrued expenses

 

(2.6

)

 

(2.6

)

Deferred tax liabilities

 

(2.8

)

 

(2.8

)

 

 

 

 

 

 

 

 

Total identifiable net assets

 

164.7

 

 

164.7

 

 

 

 

 

 

 

 

 

Goodwill

 

$

100.9

 

$

 

$

100.9

 

 

 

 

 

 

 

Measurement

 

 

 

 

 

Preliminary

 

Period

 

Final

 

 

 

Allocation

 

Adjustments

 

Allocation

 

 

 

 

 

Twelve Months

 

 

 

 

 

As of

 

Ended

 

As of

 

(in millions)

 

3/31/2012

 

3/9/2013

 

3/9/2013

 

 

 

 

 

 

 

 

 

Total cash consideration transferred

 

$

49.3

 

$

(0.3

)

$

49.0

 

 

 

 

 

 

 

 

 

Recognized amounts of identifiable assets acquired and liabilities assumed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash & cash equivalents

 

$

0.1

 

$

 

$

0.1

 

Receivables

 

3.7

 

 

3.7

 

Inventories

 

10.5

 

(1.0

)

9.5

 

Prepaid expenses and other current assets

 

0.2

 

 

0.2

 

Property, plant and equipment

 

13.0

 

(0.1

)

12.9

 

Definite-lived intangible assets

 

9.9

 

4.8

 

14.7

 

Indefinite-lived intangible assets

 

2.6

 

5.4

 

8.0

 

Other long-term assets

 

0.3

 

 

0.3

 

Accounts payable

 

(3.3

)

 

(3.3

)

Accrued expenses

 

(2.5

)

 

(2.5

)

Long-term debt

 

(1.3

)

 

(1.3

)

Deferred tax liabilities

 

(4.4

)

(2.3

)

(6.7

)

Other long-term liabilities

 

(0.1

)

 

(0.1

)

 

 

 

 

 

 

 

 

Total identifiable net assets

 

28.7

 

6.8

 

35.5

 

 

 

 

 

 

 

 

 

Goodwill

 

$

20.6

 

$

(7.1

)

$

13.5

 

 

 

 

 

 

Measurement

 

 

 

 

 

Preliminary

 

Period

 

Final

 

 

 

Allocation

 

Adjustments

 

Allocation

 

 

 

 

 

Twelve Months

 

 

 

 

 

As of

 

Ended

 

As of

 

(in millions)

 

12/31/2011

 

12/2/2012

 

12/2/2012

 

 

 

 

 

 

 

 

 

Total cash consideration transferred

 

$

288.9

 

$

0.4

 

$

289.3

 

 

 

 

 

 

 

 

 

Recognized amounts of identifiable assets acquired and liabilities assumed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash & cash equivalents

 

$

4.5

 

$

 

$

4.5

 

Receivables

 

14.0

 

 

14.0

 

Inventories

 

22.8

 

 

22.8

 

Prepaid expenses and other current assets

 

5.6

 

 

5.6

 

Property, plant and equipment

 

15.4

 

(2.1

)

13.3

 

Definite-lived intangible assets

 

112.0

 

9.5

 

121.5

 

Indefinite-lived intangible assets

 

28.0

 

(8.6

)

19.4

 

Other long-term assets

 

0.1

 

 

0.1

 

Accounts payable

 

(6.5

)

 

(6.5

)

Accrued expenses

 

(4.4

)

 

(4.4

)

Deferred tax liabilities

 

(58.9

)

3.4

 

(55.5

)

Other long-term liabilities

 

(0.4

)

 

(0.4

)

 

 

 

 

 

 

 

 

Total identifiable net assets

 

132.2

 

2.2

 

134.4

 

 

 

 

 

 

 

 

 

Goodwill

 

$

156.7

 

$

(1.8

)

$

154.9

 

 

 

 

 

 

 

Measurement

 

 

 

 

 

Preliminary

 

Period

 

Final

 

 

 

Allocation

 

Adjustments

 

Allocation

 

 

 

 

 

Twelve Months

 

 

 

 

 

As of

 

Ended

 

As of

 

(in millions)

 

12/31/2011

 

8/1/2012

 

8/1/2012

 

Consideration transferred:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash consideration

 

$

113.4

 

$

 

$

113.4

 

Contingent consideration

 

5.2

 

 

5.2

 

Total cash consideration transferred

 

$

118.6

 

$

 

$

118.6

 

 

 

 

 

 

 

 

 

Recognized amounts of identifiable assets acquired and liabilities assumed:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash & cash equivalents

 

$

7.6

 

$

 

$

7.6

 

Receivables

 

12.2

 

 

12.2

 

Inventories

 

10.5

 

 

10.5

 

Prepaid expenses and other current assets

 

0.8

 

 

0.8

 

Current assets held for sale

 

3.6

 

 

3.6

 

Property, plant and equipment

 

3.4

 

 

3.4

 

Definite-lived intangible assets

 

57.1

 

 

57.1

 

Indefinite-lived intangible assets

 

6.9

 

 

6.9

 

Other long-term assets

 

0.1

 

 

0.1

 

Non-current assets held for sale

 

21.6

 

(0.6

)

21.0

 

Accounts payable

 

(9.0

)

 

(9.0

)

Accrued expenses

 

(1.2

)

 

(1.2

)

Deferred tax liabilities

 

(21.5

)

 

(21.5

)

Other long-term liabilities

 

(3.3

)

 

(3.3

)

 

 

 

 

 

 

 

 

Total identifiable net assets

 

88.8

 

(0.6

)

88.2

 

 

 

 

 

 

 

 

 

Goodwill

 

$

29.8

 

$

0.6

 

$

30.4

 

Exit and Disposal Activities (Tables)

 

 

 

 

Three Months Ended September
30,

 

Nine Months Ended September
30,

 

(in millions)

 

2013

 

2012

 

2013

 

2012

 

Cost of goods sold

 

$

 

$

0.7

 

$

0.6

 

$

2.6

 

Selling and administrative expenses

 

 

0.2

 

0.1

 

 

Other expense

 

 

3.5

 

 

3.8

 

Total exit and disposal costs

 

$

 

$

4.4

 

$

0.7

 

$

6.4

 

 

 

 

 

Three Months Ended September
30,

 

Nine Months Ended September
30,

 

(in millions)

 

2013

 

2012

 

2013

 

2012

 

Termination benefits

 

$

 

$

0.9

 

$

0.1

 

$

2.6

 

Impairments

 

 

3.5

 

 

3.8

 

Other associated costs

 

 

 

0.6

 

 

Total exit and disposal costs

 

$

 

$

4.4

 

$

0.7

 

$

6.4

 

 

 

 

 

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

 

(1.9

)

 

(1.1

)

(3.0

)

Balance at September 30, 2013

 

$

 

$

 

$

0.1

 

$

0.1

 

 

 

 

 

Three Months Ended Sepember 30,

 

Nine Months Ended Sepember 30,

 

(in millions)

 

2013

 

2012

 

2013

 

2012

 

Total by segment

 

 

 

 

 

 

 

 

 

Carlisle Construction Materials

 

$

 

$

 

$

 

$

0.3

 

Carlisle Brake & Friction

 

 

 

 

0.1

 

Carlisle FoodService Products

 

 

4.4

 

0.4

 

4.4

 

Carlisle Transportation Products

 

 

 

0.3

 

1.6

 

Total exit and disposal costs

 

$

 

$

4.4

 

$

0.7

 

$

6.4

 

Stock-Based Compensation (Tables)
Schedule of weighted-average assumptions for stock options

 

 

 

 

2013

 

2012

 

Expected dividend yield

 

1.2

%

1.5

%

Expected life in years

 

5.71

 

5.78

 

Expected volatility

 

32.2

%

36.0

%

Risk-free interest rate

 

1.0

%

0.9

%

Weighted average fair value

 

$

17.58

 

$

14.57

 

Earnings Per Share (Tables)

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

(in millions except share amounts)

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

76.6

 

$

69.7

 

$

140.1

 

$

219.2

 

Less: dividends declared - common stock outstanding, unvested restricted shares and restricted share units

 

(14.1

)

(12.6

)

(39.7

)

(35.1

)

Undistributed earnings

 

62.5

 

57.1

 

100.4

 

184.1

 

Percent allocated to common shareholders (1)

 

99.5

%

99.4

%

99.5

%

99.4

%

 

 

62.2

 

56.8

 

99.9

 

183.0

 

Add: dividends declared - common stock

 

14.0

 

12.5

 

39.5

 

34.9

 

Numerator for basic and diluted EPS

 

$

76.2

 

$

69.3

 

$

139.4

 

$

217.9

 

 

 

 

 

 

 

 

 

 

 

Denominator (in thousands):

 

 

 

 

 

 

 

 

 

Denominator for basic EPS: weighted-average common shares outstanding

 

63,567

 

62,708

 

63,429

 

62,347

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

Performance awards

 

374

 

448

 

374

 

448

 

Stock options

 

949

 

790

 

911

 

725

 

Denominator for diluted EPS: adjusted weighted average common shares outstanding and assumed conversion

 

64,890

 

63,946

 

64,714

 

63,520

 

 

 

 

 

 

 

 

 

 

 

Per share income from continuing operations:

 

 

 

 

 

 

 

 

 

Basic

 

$

1.20

 

$

1.11

 

$

2.19

 

$

3.50

 

Diluted

 

$

1.18

 

$

1.08

 

$

2.16

 

$

3.43

 

 

 

(1) Basic weighted-average common shares outstanding

 

63,567

 

62,708

 

63,429

 

62,347

 

Basic weighted-average common shares outstanding, unvested restricted shares expected to vest and restricted share units

 

63,892

 

63,067

 

63,755

 

62,707

 

Percent allocated to common shareholders

 

99.5

%

99.4

%

99.5

%

99.4

%

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

(in millions except share amounts)

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from discontinued operations attributable to common shareholders for basic and diluted earnings per share

 

$

 

$

(0.2

)

$

(0.1

)

$

3.2

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common shareholders for basic and diluted earnings per share

 

$

76.2

 

$

69.1

 

$

139.3

 

$

221.1

 

 

 

 

 

 

 

 

 

 

 

Antidilutive stock options excluded from EPS calculation(2)

 

 

 

 

 

 

 

(2)    Represents stock options excluded from the calculation of diluted earnings per share as such options had exercise prices in excess of the weighted-average market price of the Company’s common stock during these periods. Amounts in thousands.

Fair Value Measurements (Tables)
Schedule of assets and liabilities measured at fair value on a recurring basis

 

 

 

 

 

 

Quoted Prices

 

 

 

 

 

 

 

 

 

In Active

 

Significant

 

 

 

 

 

 

 

Markets for

 

Other

 

Significant

 

 

 

Balance at

 

Identical

 

Observable

 

Unobservable

 

 

 

September 30

 

Assets

 

Inputs

 

Inputs

 

(in millions)

 

2013

 

Level 1

 

Level 2

 

Level 3

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

332.4

 

$

332.4

 

$

 

$

 

Short-term investments

 

1.3

 

1.3

 

 

 

Commodity swap agreements

 

 

 

 

 

Foreign currency forward contracts

 

0.4

 

 

0.4

 

 

Total assets measured at fair value

 

$

334.1

 

$

333.7

 

$

0.4

 

$

 

 

 

 

 

 

 

 

 

 

 

Commodity swap agreements

 

$

0.8

 

$

 

$

0.8

 

$

 

Contingent consideration

 

9.5

 

 

 

9.5

 

Total liabilities measured at fair value

 

$

10.3

 

$

 

$

0.8

 

$

9.5

 

 

 

 

 

 

 

 

Quoted Prices

 

 

 

 

 

 

 

 

 

In Active

 

Significant

 

 

 

 

 

 

 

Markets for

 

Other

 

Significant

 

 

 

Balance at

 

Identical

 

Observable

 

Unobservable

 

 

 

December 31,

 

Assets

 

Inputs

 

Inputs

 

(in millions)

 

2012

 

Level 1

 

Level 2

 

Level 3

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

112.5

 

$

112.5

 

$

 

$

 

Short-term investments

 

0.6

 

0.6

 

 

 

Commodity swap agreements

 

0.1

 

 

0.1

 

 

Foreign currency forward contracts

 

0.3

 

 

0.3

 

 

Total assets measured at fair value

 

$

113.5

 

$

113.1

 

$

0.4

 

$

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

9.9

 

$

 

$

 

$

9.9

 

Total liabilities measured at fair value

 

$

9.9

 

$

 

$

 

$

9.9

 

Inventories (Tables)
Components of inventories

 

 

 

 

September 30,

 

December 31,

 

(in millions)

 

2013

 

2012

 

 

 

 

 

 

 

Finished goods

 

$

317.7

 

$

340.0

 

Work-in-process

 

56.8

 

55.8

 

Raw materials

 

146.8

 

169.3

 

Capitalized variances

 

(1.1

)

8.6

 

Reserves

 

(38.9

)

(35.7

)

Inventories

 

$

481.3

 

$

538.0

 

Property, Plant and Equipment (Tables)
Components of property, plant and equipment

 

 

 

 

September 30,

 

December 31,

 

(in millions)

 

2013

 

2012

 

 

 

 

 

 

 

Land

 

$

49.0

 

$

45.8

 

Buildings and leasehold improvements

 

338.1

 

311.9

 

Machinery and equipment

 

880.0

 

845.2

 

Projects in progress

 

59.7

 

69.9

 

 

 

 

 

 

 

 

 

1,326.8

 

1,272.8

 

Accumulated depreciation

 

(681.5

)

(635.7

)

Property, plant and equipment, net

 

$

645.3

 

$

637.1

 

Goodwill and Other Intangible Assets (Tables)

 

 

 

 

Construction

 

Transportation

 

Brake &

 

Interconnect

 

FoodService

 

Disc.

 

 

 

(in millions)

 

Materials

 

Products

 

Friction

 

Technologies

 

Products

 

Ops

 

Total

 

Gross balance at January 1, 2013

 

$

127.2

 

$

155.5

 

$

226.7

 

$

444.6

 

$

60.3

 

$

47.4

 

$

1,061.7

 

Currency translation

 

1.0

 

 

 

(0.2

)

 

 

0.8

 

Gross balance at September 30, 2013

 

128.2

 

155.5

 

226.7

 

444.4

 

60.3

 

47.4

 

1,062.5

 

Accumulated impairment losses

 

 

(155.5

)

 

 

 

(47.4

)

(202.9

)

Net balance at September 30, 2013

 

$

128.2

 

$

 

$

226.7

 

$

444.4

 

$

60.3

 

$

 

$

859.6

 

The Company’s Other intangible assets, net at September 30, 2013, were as follows:

 

 

 

Acquired

 

Accumulated

 

Net Book

 

(in millions)

 

Cost

 

Amortization

 

Value

 

 

 

 

 

 

 

 

 

Assets subject to amortization:

 

 

 

 

 

 

 

Patents

 

$

134.0

 

$

(26.9

)

$

107.1

 

Customer Relationships

 

442.3

 

(88.8

)

353.5

 

Other

 

20.6

 

(11.2

)

9.4

 

Assets not subject to amortization:

 

 

 

 

 

 

 

Trade names

 

120.4

 

 

120.4

 

Other intangible assets, net

 

$

717.3

 

$

(126.9

)

$

590.4

 

 

The Company’s Other intangible assets, net at December 31, 2012, were as follows:

 

 

 

Acquired

 

Accumulated

 

Net Book

 

(in millions)

 

Cost

 

Amortization

 

Value

 

 

 

 

 

 

 

 

 

Assets subject to amortization:

 

 

 

 

 

 

 

Patents

 

$

133.2

 

$

(20.0

)

$

113.2

 

Customer Relationships

 

441.4

 

(68.3

)

373.1

 

Other

 

20.9

 

(9.7

)

11.2

 

Assets not subject to amortization:

 

 

 

 

 

 

 

Trade names

 

120.0

 

 

120.0

 

Other intangible assets, net

 

$

715.5

 

$

(98.0

)

$

617.5

 

 

 

 

 

September 30,

 

December 31,

 

(in millions)

 

2013

 

2012

 

 

 

 

 

 

 

Carlisle Construction Materials

 

$

87.1

 

$

89.7

 

Carlisle Interconnect Technologies

 

336.1

 

353.4

 

Carlisle Brake & Friction

 

131.7

 

136.8

 

Carlisle FoodService Products

 

32.8

 

34.9

 

Carlisle Transportation Products

 

2.7

 

2.7

 

Total

 

$

590.4

 

$

617.5

 

Borrowings (Tables)
Schedule of the Company's borrowings

 

 

 

 

September 30,

 

December 31,

 

(in millions)

 

2013

 

2012

 

 

 

 

 

 

 

3.75% notes due 2022, net of unamortized discount of ($1.0) and ($1.1) respectively

 

$

349.0

 

$

348.9

 

5.125% notes due 2020, net of unamortized discount of ($0.8) and ($0.9) respectively

 

249.2

 

249.1

 

6.125% notes due 2016, net of unamortized discount of ($0.3) and ($0.4) respectively

 

149.7

 

149.6

 

Revolving credit facility

 

 

 

Industrial development and revenue bonds through 2018

 

4.5

 

4.5

 

Other, including capital lease obligations

 

0.2

 

0.4

 

Total long-term debt

 

752.6

 

752.5

 

Less current portion

 

 

 

Total long-term debt, net of current portion

 

$

752.6

 

$

752.5

 

Retirement Plans (Tables)
Components of net periodic benefit cost

 

 

 

 

Pension Benefits

 

Post-retirement Benefits

 

 

 

Three Months Ended

 

Nine Months Ended

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

September 30,

 

September 30,

 

(in millions)

 

2013

 

2012

 

2013

 

2012

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

1.3

 

$

1.4

 

$

3.9

 

$

3.5

 

$

 

$

 

$

 

$

 

Interest cost

 

1.9

 

3.8

 

5.8

 

8.7

 

 

0.1

 

0.1

 

0.3

 

Expected return on plan assets

 

(3.1

)

(5.3

)

(9.2

)

(12.4

)

 

 

 

 

Amortization of unrecognized loss

 

1.4

 

1.3

 

4.2

 

3.9

 

0.1

 

 

0.2

 

 

Net periodic benefit cost

 

$

1.5

 

$

1.2

 

$

4.7

 

$

3.7

 

$

0.1

 

$

0.1

 

$

0.3

 

$

0.3

 

Product Warranties (Tables)

 

 

(in millions)

 

2013

 

 

 

 

 

December 31, 2012 reserve

 

$

16.9

 

Current year provision

 

12.5

 

Current year claims

 

(13.6

)

September 30, 2013 reserve

 

$

15.8

 

 

 

 

 

September 30,

 

December 31,

 

(in millions)

 

2013

 

2012

 

 

 

 

 

 

 

Deferred revenue

 

 

 

 

 

Current

 

$

16.7

 

$

16.8

 

Long-term

 

140.7

 

135.4

 

Deferred revenue liability

 

$

157.4

 

$

152.2

 

Other Long-Term Liabilities (Tables)
Components of other long-term liabilities

 

 

 

 

September 30,

 

December 31,

 

(in millions)

 

2013

 

2012

 

Deferred taxes and other tax liabilities

 

$

206.8

 

$

246.1

 

Pension and other post-retirement obligations

 

23.2

 

23.9

 

Long-term workers compensation

 

17.0

 

17.0

 

Deferred credits

 

5.3

 

14.4

 

Deferred compensation

 

10.8

 

7.7

 

Other

 

1.3

 

1.6

 

Total

 

$

264.4

 

$

310.7

 

Accumulated Other Comprehensive Income (Loss) (Tables)
Schedule of changes in Accumulated other comprehensive loss by component

The changes in Accumulated other comprehensive loss by component for the three months ended September 30, 2013 were as follows:

 

(in millions)

 

Accrued
post-retirement
benefit liability(1)

 

Foreign
currency
translation

 

Hedging
activities(2)

 

Total

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2013

 

$

(31.7

)

$

(13.1

)

$

1.1

 

$

(43.7

)

Other comprehensive income (loss) before reclassifications

 

 

11.5

 

 

11.5

 

Amounts reclassified from accumulated other comprehensive loss

 

1.5

 

 

(0.1

)

1.4

 

Income tax expense

 

(0.6

)

 

 

(0.6

)

Net other comprehensive income (loss)

 

0.9

 

11.5

 

(0.1

)

12.3

 

Balance at September 30, 2013

 

$

(30.8

)

$

(1.6

)

$

1.0

 

$

(31.4

)

 

The changes in Accumulated other comprehensive loss by component for the three months ended September 30, 2012 were as follows:

 

 

 

Accrued

 

Foreign

 

 

 

 

 

 

 

post-retirement

 

currency

 

Hedging

 

 

 

(in millions)

 

benefit liability(1)

 

translation

 

activities(2)

 

Total

 

 

 

 

 

 

 

 

 

 

 

Balance at June 30, 2012

 

$

(39.1

)

$

(10.3

)

$

1.4

 

$

(48.0

)

Other comprehensive income (loss) before reclassifications

 

 

4.7

 

 

4.7

 

Amounts reclassified from accumulated other comprehensive loss

 

1.3

 

 

(0.1

)

1.2

 

Income tax expense

 

(0.5

)

 

 

(0.5

)

Net other comprehensive income (loss)

 

0.8

 

4.7

 

(0.1

)

5.4

 

Balance at September 30, 2012

 

$

(38.3

)

$

(5.6

)

$

1.3

 

$

(42.6

)

 

 

(1)    Current period amounts related to accrued post-retirement benefit liability are related to amortization of unrecognized actuarial gains and losses which is included in net periodic benefit cost for pension and other post-retirement welfare plans. See Note 16.

(2)    Current period amounts related to hedging activities are a reduction to interest expense. See Note 19 in the Company’s 2012 Annual Report on Form 10-K for more information.

 

The changes in Accumulated other comprehensive loss by component for the nine months ended September 30, 2013 were as follows:

 

 

 

Accrued

 

Foreign

 

 

 

 

 

 

 

post-retirement

 

currency

 

Hedging

 

 

 

(in millions)

 

benefit liability(1)

 

translation

 

activities(2)

 

Total

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2012

 

$

(34.1

)

$

(2.7

)

$

1.3

 

$

(35.5

)

Other comprehensive income (loss) before reclassifications

 

0.5

 

1.1

 

 

1.6

 

Amounts reclassified from accumulated other comprehensive loss

 

4.4

 

 

(0.4

)

4.0

 

Income tax expense

 

(1.6

)

 

0.1

 

(1.5

)

Net other comprehensive income (loss)

 

3.3

 

1.1

 

(0.3

)

4.1

 

Balance at September 30, 2013

 

$

(30.8

)

$

(1.6

)

$

1.0

 

$

(31.4

)

 

The changes in Accumulated other comprehensive loss by component for the nine months ended September 30, 2012

were as follows:

 

 

 

Accrued

 

Foreign

 

 

 

 

 

 

 

post-retirement

 

currency

 

Hedging

 

 

 

(in millions)

 

benefit liability(1)

 

translation

 

activities(2)

 

Total

 

 

 

 

 

 

 

 

 

 

 

Balance at December 31, 2011

 

$

(40.7

)

$

(5.9

)

$

1.6

 

$

(45.0

)

Other comprehensive income (loss) before reclassifications

 

 

0.3

 

 

0.3

 

Amounts reclassified from accumulated other comprehensive loss

 

3.9

 

 

(0.4

)

3.5

 

Income tax expense

 

(1.5

)

 

0.1

 

(1.4

)

Net other comprehensive income (loss)

 

2.4

 

0.3

 

(0.3

)

2.4

 

Balance at September 30, 2012

 

$

(38.3

)

$

(5.6

)

$

1.3

 

$

(42.6

)

 

 

(1)    Current period amounts related to accrued post-retirement benefit liability are related to amortization of unrecognized actuarial gains and losses which is included in net periodic benefit cost for pension and other post-retirement welfare plans. See Note 16.

(2)    Current period amounts related to hedging activities are a reduction to interest expense. See Note 19 in the Company’s 2012 Annual Report on Form 10-K for more information.

Subsequent Event (Tables)
Schedule of major classes of assets and associated liabilities of the Transportation Products disposal group subject to sale

 

 

 

 

September 30,

 

(in millions)

 

2013

 

 

 

 

 

Cash and cash equivalents

 

$

0.5

 

Receivables, net of allowance

 

84.0

 

Inventories

 

181.5

 

Property, plant and equipment

 

162.2

 

Other assets

 

7.4

 

Total assets

 

$

435.6

 

Current liabilities

 

84.6

 

Other liabilities

 

1.5

 

Total liabilities

 

$

86.1

 

Segment Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Sales, EBIT, assets of operations by reportable segment
 
 
 
 
Sales
$ 968.8 
$ 910.2 
$ 2,821.9 
$ 2,783.8 
EBIT
123.4 
110.6 
216.0 
347.1 
Assets
3,596.9 
3,242.3 
3,596.9 
3,242.3 
Corporate
 
 
 
 
Sales, EBIT, assets of operations by reportable segment
 
 
 
 
EBIT
(10.4)
(12.8)
(36.0)
(37.0)
Assets
367.3 
113.0 
367.3 
113.0 
Carlisle Construction Materials
 
 
 
 
Sales, EBIT, assets of operations by reportable segment
 
 
 
 
Sales
505.7 
456.7 
1,335.8 
1,280.5 
EBIT
83.0 
79.6 
197.0 
207.0 
Assets
966.3 
892.2 
966.3 
892.2 
Carlisle Interconnect Technologies
 
 
 
 
Sales, EBIT, assets of operations by reportable segment
 
 
 
 
Sales
147.8 
115.0 
434.7 
340.5 
EBIT
24.8 
18.7 
65.5 
52.8 
Assets
1,028.0 
794.4 
1,028.0 
794.4 
Carlisle Brake & Friction
 
 
 
 
Sales, EBIT, assets of operations by reportable segment
 
 
 
 
Sales
85.2 
110.6 
269.6 
361.3 
EBIT
5.2 
18.9 
28.6 
66.6 
Assets
601.4 
671.2 
601.4 
671.2 
Carlisle FoodService Products
 
 
 
 
Sales, EBIT, assets of operations by reportable segment
 
 
 
 
Sales
58.1 
62.7 
178.9 
185.2 
EBIT
6.9 
(1.2)
19.3 
10.0 
Assets
187.2 
204.4 
187.2 
204.4 
Carlisle Transportation Products
 
 
 
 
Sales, EBIT, assets of operations by reportable segment
 
 
 
 
Sales
172.0 
165.2 
602.9 
616.3 
EBIT
13.9 
7.4 
(58.4)
47.7 
Assets
$ 446.7 
$ 567.1 
$ 446.7 
$ 567.1 
Acquisitions (Details)
In Millions, unless otherwise specified
9 Months Ended 0 Months Ended 0 Months Ended 1 Months Ended
Sep. 30, 2012
USD ($)
Sep. 30, 2013
3.75% senior notes due 2022
Dec. 17, 2012
Thermax and Raydex/CDT Limited
USD ($)
Dec. 17, 2012
Thermax and Raydex/CDT Limited
3.75% senior notes due 2022
Mar. 9, 2012
Hertalan Holding B.V.
USD ($)
Mar. 9, 2012
Hertalan Holding B.V.
EUR (€)
Dec. 2, 2011
Tri-Star Electronics International, Inc.
USD ($)
Aug. 2, 2011
PDT Phoenix GmbH
USD ($)
Aug. 2, 2011
PDT Phoenix GmbH
EUR (€)
Aug. 31, 2011
PDT Phoenix GmbH
USD ($)
Aug. 31, 2011
PDT Phoenix GmbH
EUR (€)
Business acquisition
 
 
 
 
 
 
 
 
 
 
 
Percentage of ownership interest acquired
 
 
 
 
100.00% 
100.00% 
100.00% 
100.00% 
100.00% 
 
 
Consideration
 
 
 
 
 
 
 
 
 
 
 
Total fair value of consideration transferred
 
 
 
 
 
 
 
$ 118.6 
€ 82.3 
 
 
Cash purchase price of acquisition
 
 
 
 
 
 
 
113.4 
78.7 
 
 
Aggregate cash purchase price, net of cash acquired
49.3 
 
265.5 
 
48.9 
37.3 
284.8 
 
 
111.0 
77.0 
Cash acquired in business combination
 
 
0.1 
 
0.1 
0.1 
4.5 
 
 
7.6 
5.3 
Interest rate (as a percent)
 
3.75% 
 
3.75% 
 
 
 
 
 
 
 
Maximum borrowing capacity
 
 
 
 
600.0 
 
 
 
 
 
 
Contingent consideration
 
 
 
 
 
 
 
$ 5.2 
€ 3.6 
 
 
Acquisitions (Details 2)
In Millions, unless otherwise specified
1 Months Ended 1 Months Ended 12 Months Ended 9 Months Ended 9 Months Ended 3 Months Ended 0 Months Ended 1 Months Ended 9 Months Ended 1 Months Ended 1 Months Ended 12 Months Ended 0 Months Ended 1 Months Ended 1 Months Ended 12 Months Ended 0 Months Ended
Sep. 30, 2013
USD ($)
Dec. 31, 2012
USD ($)
Dec. 17, 2012
Thermax and Raydex/CDT Limited
USD ($)
Dec. 17, 2012
Thermax and Raydex/CDT Limited
Customer relationships
USD ($)
Dec. 31, 2012
Thermax and Raydex/CDT Limited
Customer relationships
Minimum
Dec. 31, 2012
Thermax and Raydex/CDT Limited
Customer relationships
Maximum
Dec. 17, 2012
Thermax and Raydex/CDT Limited
Acquired Technology
USD ($)
Dec. 31, 2012
Thermax and Raydex/CDT Limited
Acquired Technology
Minimum
Dec. 31, 2012
Thermax and Raydex/CDT Limited
Acquired Technology
Maximum
Dec. 31, 2012
Thermax and Raydex/CDT Limited
Non-compete agreement
Dec. 17, 2012
Thermax and Raydex/CDT Limited
Non-compete agreement
USD ($)
Dec. 31, 2012
Thermax and Raydex/CDT Limited
Preliminary Allocation
USD ($)
Sep. 30, 2013
Thermax and Raydex/CDT Limited
Revised Preliminary Allocation
USD ($)
Mar. 9, 2013
Hertalan Holding B.V.
Trade names
USD ($)
Sep. 30, 2013
Hertalan Holding B.V.
Customer relationships
Mar. 9, 2013
Hertalan Holding B.V.
Customer relationships
USD ($)
Mar. 31, 2012
Hertalan Holding B.V.
Preliminary Allocation
USD ($)
Mar. 9, 2013
Hertalan Holding B.V.
Measurement Period Adjustments
USD ($)
Mar. 9, 2013
Hertalan Holding B.V.
Final Allocation
USD ($)
Dec. 2, 2013
Tri-Star Electronics International, Inc.
Trade names
USD ($)
Dec. 2, 2011
Tri-Star Electronics International, Inc.
Customer relationships
USD ($)
Dec. 31, 2012
Tri-Star Electronics International, Inc.
Customer relationships
Minimum
Dec. 31, 2012
Tri-Star Electronics International, Inc.
Customer relationships
Maximum
Sep. 30, 2013
Tri-Star Electronics International, Inc.
Customer certifications and approvals
Dec. 2, 2011
Tri-Star Electronics International, Inc.
Customer certifications and approvals
USD ($)
Dec. 31, 2012
Tri-Star Electronics International, Inc.
Acquired Technology
Dec. 2, 2011
Tri-Star Electronics International, Inc.
Acquired Technology
USD ($)
Dec. 2, 2011
Tri-Star Electronics International, Inc.
Non-compete agreement
USD ($)
Dec. 31, 2012
Tri-Star Electronics International, Inc.
Non-compete agreement
Minimum
Dec. 31, 2012
Tri-Star Electronics International, Inc.
Non-compete agreement
Maximum
Dec. 31, 2011
Tri-Star Electronics International, Inc.
Preliminary Allocation
USD ($)
Dec. 2, 2012
Tri-Star Electronics International, Inc.
Measurement Period Adjustments
USD ($)
Dec. 2, 2012
Tri-Star Electronics International, Inc.
Final Allocation
USD ($)
Aug. 2, 2011
PDT Phoenix GmbH
USD ($)
Aug. 2, 2011
PDT Phoenix GmbH
EUR (€)
Jan. 2, 2012
PDT Phoenix GmbH
USD ($)
Jan. 2, 2012
PDT Phoenix GmbH
EUR (€)
Aug. 3, 2011
PDT Phoenix GmbH
Trade names
USD ($)
Aug. 31, 2011
PDT Phoenix GmbH
Customer relationships
Aug. 2, 2011
PDT Phoenix GmbH
Customer relationships
USD ($)
Aug. 2, 2011
PDT Phoenix GmbH
Patents
USD ($)
Aug. 31, 2011
PDT Phoenix GmbH
Patents
Minimum
Aug. 31, 2011
PDT Phoenix GmbH
Patents
Maximum
Dec. 31, 2011
PDT Phoenix GmbH
Preliminary Allocation
USD ($)
Aug. 1, 2012
PDT Phoenix GmbH
Measurement Period Adjustments
USD ($)
Aug. 1, 2012
PDT Phoenix GmbH
Final Allocation
USD ($)
Cash consideration transferred:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total cash consideration transferred
 
 
 
 
 
 
 
 
 
 
 
$ 265.6 
$ 265.6 
 
 
 
$ 49.3 
$ (0.3)
$ 49.0 
 
 
 
 
 
 
 
 
 
 
 
$ 288.9 
$ 0.4 
$ 289.3 
$ 113.4 
€ 78.7 
 
 
 
 
 
 
 
 
$ 113.4 
 
$ 113.4 
Contingent consideration
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.2 
3.6 
 
 
 
 
 
 
 
 
5.2 
 
5.2 
Sale of Certain assets of the acquired entity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
22.1 
17.1 
 
 
 
 
 
 
 
 
 
Total fair value of consideration transferred
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
118.6 
82.3 
 
 
 
 
 
 
 
 
118.6 
 
118.6 
Recognized amounts of identifiable assets acquired and liabilities assumed:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash & cash equivalents
 
 
 
 
 
 
 
 
 
 
 
0.1 
0.1 
 
 
 
0.1 
 
0.1 
 
 
 
 
 
 
 
 
 
 
 
4.5 
 
4.5 
 
 
 
 
 
 
 
 
 
 
7.6 
 
7.6 
Receivables
 
 
 
 
 
 
 
 
 
 
 
14.3 
14.3 
 
 
 
3.7 
 
3.7 
 
 
 
 
 
 
 
 
 
 
 
14.0 
 
14.0 
 
 
 
 
 
 
 
 
 
 
12.2 
 
12.2 
Inventories
 
 
 
 
 
 
 
 
 
 
 
15.4 
15.4 
 
 
 
10.5 
(1.0)
9.5 
 
 
 
 
 
 
 
 
 
 
 
22.8 
 
22.8 
 
 
 
 
 
 
 
 
 
 
10.5 
 
10.5 
Prepaid expenses and other current assets
 
 
 
 
 
 
 
 
 
 
 
0.9 
0.9 
 
 
 
0.2 
 
0.2 
 
 
 
 
 
 
 
 
 
 
 
5.6 
 
5.6 
 
 
 
 
 
 
 
 
 
 
0.8 
 
0.8 
Current assets held for sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3.6 
 
3.6 
Property, plant and equipment
 
 
 
 
 
 
 
 
 
 
 
7.2 
7.2 
 
 
 
13.0 
(0.1)
12.9 
 
 
 
 
 
 
 
 
 
 
 
15.4 
(2.1)
13.3 
 
 
 
 
 
 
 
 
 
 
3.4 
 
3.4 
Definite-lived intangible assets
 
 
135.1 
111.4 
 
 
23.5 
 
 
 
0.2 
135.1 
135.1 
 
 
14.7 
9.9 
4.8 
14.7 
 
94.8 
 
 
 
1.0 
 
23.2 
2.5 
 
 
112.0 
9.5 
121.5 
 
 
 
 
 
 
23.8 
33.3 
 
 
57.1 
 
57.1 
Indefinite-lived intangible assets
 
 
9.1 
 
 
 
 
 
 
 
 
9.1 
9.1 
8.0 
 
 
2.6 
5.4 
8.0 
19.4 
 
 
 
 
 
 
 
 
 
 
28.0 
(8.6)
19.4 
 
 
 
 
6.9 
 
 
 
 
 
6.9 
 
6.9 
Other long-term assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.3 
 
0.3 
 
 
 
 
 
 
 
 
 
 
 
0.1 
 
0.1 
 
 
 
 
 
 
 
 
 
 
0.1 
 
0.1 
Non-current assets held for sale
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
21.6 
(0.6)
21.0 
Accounts payable
 
 
 
 
 
 
 
 
 
 
 
(12.0)
(12.0)
 
 
 
(3.3)
 
(3.3)
 
 
 
 
 
 
 
 
 
 
 
(6.5)
 
(6.5)
 
 
 
 
 
 
 
 
 
 
(9.0)
 
(9.0)
Accrued expenses
 
 
 
 
 
 
 
 
 
 
 
(2.6)
(2.6)
 
 
 
(2.5)
 
(2.5)
 
 
 
 
 
 
 
 
 
 
 
(4.4)
 
(4.4)
 
 
 
 
 
 
 
 
 
 
(1.2)
 
(1.2)
Long-term debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1.3)
 
(1.3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred tax liabilities
 
 
 
 
 
 
 
 
 
 
 
(2.8)
(2.8)
 
 
 
(4.4)
(2.3)
(6.7)
 
 
 
 
 
 
 
 
 
 
 
(58.9)
3.4 
(55.5)
 
 
 
 
 
 
 
 
 
 
(21.5)
 
(21.5)
Other long-term liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(0.1)
 
(0.1)
 
 
 
 
 
 
 
 
 
 
 
(0.4)
 
(0.4)
 
 
 
 
 
 
 
 
 
 
(3.3)
 
(3.3)
Total identifiable net assets
 
 
 
 
 
 
 
 
 
 
 
164.7 
164.7 
 
 
 
28.7 
6.8 
35.5 
 
 
 
 
 
 
 
 
 
 
 
132.2 
2.2 
134.4 
 
 
 
 
 
 
 
 
 
 
88.8 
(0.6)
88.2 
Goodwill
$ 859.6 
$ 958.8 
 
 
 
 
 
 
 
 
 
$ 100.9 
$ 100.9 
 
 
 
$ 20.6 
$ (7.1)
$ 13.5 
 
 
 
 
 
 
 
 
 
 
 
$ 156.7 
$ (1.8)
$ 154.9 
 
 
 
 
 
 
 
 
 
 
$ 29.8 
$ 0.6 
$ 30.4 
Useful life of finite lived intangible assets
 
 
 
 
17 years 
18 years 
 
9 years 
11 years 
5 years 
 
 
 
 
9 years 
 
 
 
 
 
 
12 years 
21 years 
3 years 
 
16 years 
 
 
3 years 
5 years 
 
 
 
 
 
 
 
 
19 years 
 
 
10 years 
20 years 
 
 
 
Discontinued Operations and Assets Held for Sale (Details)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended 0 Months Ended 1 Months Ended 9 Months Ended
Sep. 30, 2013
USD ($)
Sep. 30, 2012
USD ($)
Sep. 30, 2013
USD ($)
Sep. 30, 2012
USD ($)
Sep. 30, 2013
Legacy workers compensation claims
USD ($)
Jan. 2, 2012
PDT profiles business
USD ($)
Jan. 31, 2012
PDT profiles business
USD ($)
Jan. 31, 2012
PDT profiles business
EUR (€)
Sep. 30, 2013
CCM's Kent, WA facility
USD ($)
Sep. 30, 2013
Zevenaar, The Netherlands distribution center
Carlisle FoodService Products
USD ($)
Sep. 30, 2013
Reno, NV
Carlisle FoodService Products
USD ($)
Income (loss) from discontinued operations:
 
 
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes from discontinued operations
$ 0 
$ (0.2)
$ (0.2)
$ 3.3 
$ (0.2)
 
 
 
 
 
 
Non-current assets held for sale
4.2 
 
4.2 
 
 
 
 
 
3.9 
0.3 
 
Proceeds from the sale of long-lived tangible assets
 
 
6.7 
 
 
 
 
 
 
 
6.2 
Gain (loss) on sale of business
 
 
 
 
 
 
 
 
 
1.0 
Sale from discontinued operations
 
 
 
 
 
 
 
 
 
 
 
Cash proceeds from sale of business
 
 
 
 
 
 
$ 22.1 
€ 17.1 
 
 
 
Exit and Disposal Activities (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Exit and disposal activities
 
 
 
Exit and disposal costs
$ 4.4 
$ 0.7 
$ 6.4 
Cost of goods sold
 
 
 
Exit and disposal activities
 
 
 
Exit and disposal costs
0.7 
0.6 
2.6 
Selling and administrative expenses
 
 
 
Exit and disposal activities
 
 
 
Exit and disposal costs
0.2 
0.1 
 
Other expense
 
 
 
Exit and disposal activities
 
 
 
Exit and disposal costs
$ 3.5 
 
$ 3.8 
Exit and Disposal Activities (Details 2) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Exit and disposal activities
 
 
 
Total exit and disposal costs
$ 4.4 
$ 0.7 
$ 6.4 
Exit and disposal costs accrued
 
 
 
Balance at the beginning of period
 
2.4 
 
Charges to expense and adjustments
 
0.7 
 
Usage
 
(3.0)
 
Balance at the end of period
 
0.1 
 
Termination benefits
 
 
 
Exit and disposal activities
 
 
 
Total exit and disposal costs
0.9 
0.1 
2.6 
Exit and disposal costs accrued
 
 
 
Balance at the beginning of period
 
1.8 
 
Charges to expense and adjustments
 
0.1 
 
Usage
 
(1.9)
 
Impairments
 
 
 
Exit and disposal activities
 
 
 
Total exit and disposal costs
3.5 
 
3.8 
Other associated costs
 
 
 
Exit and disposal activities
 
 
 
Total exit and disposal costs
 
0.6 
 
Exit and disposal costs accrued
 
 
 
Balance at the beginning of period
 
0.6 
 
Charges to expense and adjustments
 
0.6 
 
Usage
 
(1.1)
 
Balance at the end of period
 
$ 0.1 
 
Exit and Disposal Activities (Details 3) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended 12 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended 6 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2012
Carlisle Construction Materials
Dec. 31, 2012
Carlisle Construction Materials
Sep. 30, 2011
Carlisle Brake & Friction
Sep. 30, 2012
Carlisle Brake & Friction
Dec. 31, 2012
Carlisle Brake & Friction
Sep. 30, 2013
Carlisle Brake & Friction
Dec. 31, 2011
Carlisle Brake & Friction
Employee termination costs and other associated costs
Sep. 30, 2012
Carlisle FoodService Products
Sep. 30, 2013
Carlisle FoodService Products
Sep. 30, 2012
Carlisle FoodService Products
Dec. 31, 2012
Carlisle FoodService Products
Sep. 30, 2013
Carlisle FoodService Products
Reno, NV
Sep. 30, 2013
Carlisle Transportation Products
Sep. 30, 2012
Carlisle Transportation Products
Exit and disposal activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total exit and disposal costs
$ 4.4 
$ 0.7 
$ 6.4 
$ 0.3 
$ 0.8 
$ 1.0 
$ 0.1 
 
 
 
$ 4.4 
$ 0.4 
$ 4.4 
 
 
$ 0.3 
$ 1.6 
Restructuring and related cost expected to be incurred
 
 
 
 
 
 
 
 
 
 
5.7 
 
 
 
 
2.9 
 
Write down of assets sold in connection with plant closure
 
 
 
 
 
 
 
0.3 
 
 
 
 
 
 
 
 
 
Income from reversal of accrued pension costs
 
 
 
 
 
 
 
0.2 
 
 
 
 
 
 
 
 
 
Unpaid lease termination costs
 
 
 
 
 
 
 
 
0.1 
 
 
 
 
 
 
 
 
Restructuring and related cost incurred
 
 
 
 
 
 
 
0.1 
 
0.9 
 
 
 
5.3 
 
 
 
Proceeds from the sale of long-lived tangible assets
 
6.7 
 
 
 
 
 
 
 
 
 
 
 
 
6.2 
 
 
Gain (loss) on sale of business
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 1.0 
 
 
Stock-Based Compensation (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Stock-based compensation
 
 
 
 
Pre-tax compensation expense
$ 2.8 
$ 3.6 
$ 13.7 
$ 13.5 
Aggregate grant date fair value of stock options, restricted stock awards and performance share awards
 
 
16.9 
 
2008 Executive Incentive Program
 
 
 
 
Stock-based compensation
 
 
 
 
Shares available for grant under the plan
3,074,840 
 
3,074,840 
 
Shares available for issuance under the plan
693,705 
 
693,705 
 
2005 Nonemployee Director Equity Plan
 
 
 
 
Stock-based compensation
 
 
 
 
Shares available for grant under the plan
267,466 
 
267,466 
 
Shares available for issuance under the plan
37,466 
 
37,466 
 
Stock options
 
 
 
 
Stock-based compensation
 
 
 
 
Pre-tax compensation expense
$ 1.2 
$ 2.1 
$ 3.6 
$ 5.6 
Stock options granted (in shares)
 
 
283,975 
 
Maximum term life
 
 
10 years 
 
Weighted-average assumptions used to estimate grant date fair value of stock options
 
 
 
 
Expected dividend yield (as a percent)
 
 
1.20% 
1.50% 
Expected life in years
 
 
5 years 8 months 16 days 
5 years 9 months 11 days 
Expected volatility (as a percent)
 
 
32.20% 
36.00% 
Risk-free interest rate (as a percent)
 
 
1.00% 
0.90% 
Weighted average fair value (in dollars per share)
 
 
$ 17.58 
$ 14.57 
Stock options |
Awards 2008 and thereafter
 
 
 
 
Stock-based compensation
 
 
 
 
Portion of stock options vesting on the first anniversary
 
 
0.3333 
 
Portion of stock options vesting on the second anniversary
 
 
0.3333 
 
Portion of stock options vesting on the third anniversary
 
 
0.3333 
 
Restricted stock awards
 
 
 
 
Stock-based compensation
 
 
 
 
Awards granted (in shares)
 
 
71,255 
 
Performance share awards
 
 
 
 
Stock-based compensation
 
 
 
 
Awards granted (in shares)
 
 
71,255 
 
Restricted Stock Units
 
 
 
 
Stock-based compensation
 
 
 
 
Awards granted (in shares)
 
 
11,592 
 
Stock-Based Compensation (Details 2) (USD $)
9 Months Ended 1 Months Ended
Sep. 30, 2013
Restricted stock awards
Sep. 30, 2013
Performance share awards
Sep. 30, 2013
Restricted Stock Units
Feb. 29, 2008
Executive Management
Restricted stock awards
Stock-based compensation
 
 
 
 
Vesting period of shares awarded in 2008
3 years 
3 years 
 
5 years 
Award Activity
 
 
 
 
Units granted (in shares)
71,255 
71,255 
11,592 
56,700 
Performance share awards
 
 
 
 
Shares granted (in dollars per share)
 
$ 91.33 
 
 
Weighted average grant date fair value (in dollars per share)
$ 64.80 
 
$ 64.80 
 
Income Taxes (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Reconciliation of taxes from continuing operations
 
 
Effective income tax rate on continuing operations (as a percent)
26.50% 
33.20% 
Benefit of foreign earnings taxed at lower rates
$ 11.8 
 
Expected effective tax rate for the full year (as a percent)
30.00% 
 
Reconciliation of effective income tax rate with United States statutory rate (as a percent)
35.00% 
 
Earnings Per Share (Details) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Numerator:
 
 
 
 
Income from continuing operations
$ 76.6 
$ 69.7 
$ 140.1 
$ 219.2 
Less: dividends declared - common stock outstanding, unvested restricted shares and restricted share units
(14.1)
(12.6)
(39.7)
(35.1)
Undistributed earnings
62.5 
57.1 
100.4 
184.1 
Percent allocated to common shareholders
99.50% 
99.40% 
99.50% 
99.40% 
Undistributed earnings allocated to common shareholders
62.2 
56.8 
99.9 
183.0 
Add: dividends declared - common stock
14.0 
12.5 
39.5 
34.9 
Numerator for basic and diluted EPS
76.2 
69.3 
139.4 
217.9 
Denominator (in thousands):
 
 
 
 
Denominator for basic EPS: weighted-average common shares outstanding
63,567 
62,708 
63,429 
62,347 
Effect of dilutive securities:
 
 
 
 
Performance awards (in shares)
374 
448 
374 
448 
Stock options (in shares)
949 
790 
911 
725 
Denominator for diluted EPS: adjusted weighted average common shares outstanding and assumed conversion
64,890 
63,946 
64,714 
63,520 
Per share income from continuing operations:
 
 
 
 
Basic (in dollars per share)
$ 1.20 
$ 1.11 
$ 2.19 
$ 3.50 
Diluted (in dollars per share)
$ 1.18 
$ 1.08 
$ 2.16 
$ 3.43 
Basic weighted-average common shares outstanding
63,567 
62,708 
63,429 
62,347 
Basic weighted-average common shares outstanding, unvested restricted shares expected to vest and restricted share units
63,892 
63,067 
63,755 
62,707 
Percent allocated to common shareholders
99.50% 
99.40% 
99.50% 
99.40% 
Income from discontinued operations and net income
 
 
 
 
Income (loss) from discontinued operations attributable to common shareholders for basic and diluted earnings per share
 
(0.2)
(0.1)
3.2 
Net income attributable to common shareholders for basic and diluted earnings per share
$ 76.2 
$ 69.1 
$ 139.3 
$ 221.1 
Fair Value Measurements (Details)
In Millions, unless otherwise specified
9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2013
USD ($)
item
Sep. 30, 2013
EUR (€)
Dec. 31, 2012
USD ($)
Jun. 30, 2013
Transportation Products
USD ($)
Sep. 30, 2013
Recurring Fair Value Measurements
Total
USD ($)
Dec. 31, 2012
Recurring Fair Value Measurements
Total
USD ($)
Sep. 30, 2013
Recurring Fair Value Measurements
Quoted Prices in Active Markets for Identical Assets (Level 1)
USD ($)
Dec. 31, 2012
Recurring Fair Value Measurements
Quoted Prices in Active Markets for Identical Assets (Level 1)
USD ($)
Sep. 30, 2013
Recurring Fair Value Measurements
Significant Observable Inputs (Level 2)
USD ($)
Dec. 31, 2012
Recurring Fair Value Measurements
Significant Observable Inputs (Level 2)
USD ($)
Sep. 30, 2013
Recurring Fair Value Measurements
Significant Unobservable Inputs (Level 3)
USD ($)
Dec. 31, 2012
Recurring Fair Value Measurements
Significant Unobservable Inputs (Level 3)
USD ($)
Sep. 30, 2013
Nonrecurring Fair Value Measurements
Significant Unobservable Inputs (Level 3)
Transportation Products
USD ($)
Fair value measurements
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
$ 332.4 
$ 112.5 
$ 332.4 
$ 112.5 
 
 
 
 
 
Short-term investments
 
 
 
 
1.3 
0.6 
1.3 
0.6 
 
 
 
 
 
Commodity swap agreements
 
 
 
 
 
0.1 
 
 
 
0.1 
 
 
 
Foreign currency forward contracts
 
 
 
 
0.4 
0.3 
 
 
0.4 
0.3 
 
 
 
Total assets measured at fair value
 
 
 
 
334.1 
113.5 
333.7 
113.1 
0.4 
0.4 
 
 
 
Commodity swap agreements
 
 
 
 
0.8 
 
 
 
0.8 
 
 
 
 
Contingent consideration
 
 
 
 
9.5 
9.9 
 
 
 
 
9.5 
9.9 
 
Total liabilities measured at fair value
 
 
 
 
10.3 
9.9 
 
 
0.8 
 
9.5 
9.9 
 
Cash and cash equivalents for the Company's deferred compensation program
3.4 
 
1.6 
 
 
 
 
 
 
 
 
 
 
Short-term investments held in mutual funds and as cash for the Company's Deferred Compensation Plan
1.3 
 
0.6 
 
 
 
 
 
 
 
 
 
 
Number of swaps whose terms exceed one year from the balance sheet date
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of contingent consideration
9.5 
7.0 
 
 
 
 
 
 
 
 
 
 
 
Goodwill impairment charge
100.0 
 
 
100.0 
 
 
 
 
 
 
 
 
100.0 
Carrying value of goodwill
$ 859.6 
 
$ 958.8 
 
 
 
 
 
 
 
 
 
$ 0 
Inventories (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Inventories
 
 
Finished goods
$ 317.7 
$ 340.0 
Work-in-process
56.8 
55.8 
Raw materials
146.8 
169.3 
Capitalized variances
(1.1)
8.6 
Reserves
(38.9)
(35.7)
Inventories
$ 481.3 
$ 538.0 
Property, Plant and Equipment (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Property, Plant and Equipment
 
 
Property, plant and equipment, gross
$ 1,326.8 
$ 1,272.8 
Accumulated depreciation
(681.5)
(635.7)
Property, plant and equipment, net
645.3 
637.1 
Land
 
 
Property, Plant and Equipment
 
 
Property, plant and equipment, gross
49.0 
45.8 
Buildings and leasehold improvements
 
 
Property, Plant and Equipment
 
 
Property, plant and equipment, gross
338.1 
311.9 
Machinery and equipment
 
 
Property, Plant and Equipment
 
 
Property, plant and equipment, gross
880.0 
845.2 
Projects in progress
 
 
Property, Plant and Equipment
 
 
Property, plant and equipment, gross
$ 59.7 
$ 69.9 
Goodwill and Other Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended 9 Months Ended 3 Months Ended 9 Months Ended
Sep. 30, 2013
Dec. 31, 2012
Sep. 30, 2013
Carlisle Construction Materials
Dec. 31, 2012
Carlisle Construction Materials
Jun. 30, 2013
Transportation Products
Sep. 30, 2013
Transportation Products
Dec. 31, 2012
Transportation Products
Sep. 30, 2013
Carlisle Brake & Friction
Dec. 31, 2012
Carlisle Brake & Friction
Sep. 30, 2013
Carlisle Interconnect Technologies
Dec. 31, 2012
Carlisle Interconnect Technologies
Sep. 30, 2013
Carlisle FoodService Products
Dec. 31, 2012
Carlisle FoodService Products
Sep. 30, 2013
Disc. Ops
Dec. 31, 2012
Disc. Ops
Changes in the carrying amount of goodwill
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill, gross
$ 1,062.5 
$ 1,061.7 
$ 128.2 
$ 127.2 
 
$ 155.5 
$ 155.5 
$ 226.7 
$ 226.7 
$ 444.4 
$ 444.6 
$ 60.3 
$ 60.3 
$ 47.4 
$ 47.4 
Currency translation
0.8 
 
1.0 
 
 
 
 
 
 
(0.2)
 
 
 
 
 
Accumulated impairment losses
(202.9)
 
 
 
 
(155.5)
 
 
 
 
 
 
 
(47.4)
 
Goodwill, net
859.6 
958.8 
128.2 
 
 
 
 
226.7 
 
444.4 
 
60.3 
 
 
 
Goodwill impairment charge
$ 100.0 
 
 
 
$ 100.0 
 
 
 
 
 
 
 
 
 
 
Goodwill and Other Intangible Assets (Details 2) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Other intangible assets, net
 
 
Other intangible assets, Acquired Cost
$ 717.3 
$ 715.5 
Other intangible assets, Accumulated Amortization
(126.9)
(98.0)
Other intangible assets, net
590.4 
617.5 
Estimated amortization expense
 
 
Remainder of 2013
9.2 
 
2014
37.2 
 
2015
36.6 
 
2016
35.6 
 
2017
35.4 
 
Trade names
 
 
Assets not subject to amortization:
 
 
Acquired Cost
120.4 
120.0 
Net Book Value
120.4 
120.0 
Patents
 
 
Other intangible assets
 
 
Acquired Cost
134.0 
133.2 
Accumulated Amortization
(26.9)
(20.0)
Net Book Value
107.1 
113.2 
Customer relationships
 
 
Other intangible assets
 
 
Acquired Cost
442.3 
441.4 
Accumulated Amortization
(88.8)
(68.3)
Net Book Value
353.5 
373.1 
Other
 
 
Other intangible assets
 
 
Acquired Cost
20.6 
20.9 
Accumulated Amortization
(11.2)
(9.7)
Net Book Value
$ 9.4 
$ 11.2 
Goodwill and Other Intangible Assets (Details 3) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Net book value of other intangible assets by the reportable segment
 
 
Other intangible assets, net
$ 590.4 
$ 617.5 
Carlisle Construction Materials
 
 
Net book value of other intangible assets by the reportable segment
 
 
Other intangible assets, net
87.1 
89.7 
Carlisle Interconnect Technologies
 
 
Net book value of other intangible assets by the reportable segment
 
 
Other intangible assets, net
336.1 
353.4 
Carlisle Brake & Friction
 
 
Net book value of other intangible assets by the reportable segment
 
 
Other intangible assets, net
131.7 
136.8 
Carlisle FoodService Products
 
 
Net book value of other intangible assets by the reportable segment
 
 
Other intangible assets, net
32.8 
34.9 
Carlisle Transportation Products
 
 
Net book value of other intangible assets by the reportable segment
 
 
Other intangible assets, net
$ 2.7 
$ 2.7 
Commitments and Contingencies (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2013
item
Sep. 30, 2012
Dec. 31, 2012
Commitments and Contingencies
 
 
 
Number of leases that require rent to be paid based on contingent events
 
 
Rent expense
$ 21.1 
$ 23.9 
 
Future minimum payments
 
 
 
Remainder of 2013
8.9 
 
 
2014
20.2 
 
 
2015
16.2 
 
 
2016
13.3 
 
 
2017
10.3 
 
 
Thereafter
17.1 
 
 
Purchase Obligations
 
 
 
Number of purchase agreements with contractual term exceeding one year
 
 
Maximum term of purchase agreements for certain key raw materials
1 year 
 
 
Workers' Compensation, General Liability and Property Claims
 
 
 
Retention limits per occurrence for general liability
1.0 
 
 
Retention limits per occurrence for workers' compensation
0.5 
 
 
Retention limits per occurrence for property claims
0.25 
 
 
Retention limits per occurrence for medical claims
1.0 
 
 
Accrued workers compensation claims
26.0 
 
24.1 
Workers' compensation included in accrued expenses
9.0 
 
 
Workers' compensation included in other long-term liabilities
17.0 
 
17.0 
Asbestos-related injury
 
 
 
Litigation
 
 
 
Accounting effect of dismissals or settlements
$ 0 
 
 
Borrowings (Details) (USD $)
In Millions, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Borrowings
 
 
 
Total long-term debt
$ 752.6 
 
$ 752.5 
Total long-term debt, net of current portion
752.6 
 
752.5 
Cash payments for interest
22.0 
19.0 
 
Interest income
0.3 
0.3 
 
3.75% senior notes due 2022
 
 
 
Borrowings
 
 
 
Total long-term debt
349.0 
 
348.9 
Interest rate (as a percent)
3.75% 
 
 
Unamortized discount
(1.0)
 
(1.1)
Par value of senior notes
350 
 
 
3.75% senior notes due 2022 |
Significant Observable Inputs (Level 2)
 
 
 
Borrowings
 
 
 
Fair value of notes
333.2 
 
 
5.125% senior notes due 2020
 
 
 
Borrowings
 
 
 
Total long-term debt
249.2 
 
249.1 
Interest rate (as a percent)
5.125% 
 
 
Unamortized discount
(0.8)
 
(0.9)
Par value of senior notes
250 
 
 
5.125% senior notes due 2020 |
Significant Observable Inputs (Level 2)
 
 
 
Borrowings
 
 
 
Fair value of notes
264.9 
 
 
6.125% senior notes due 2016
 
 
 
Borrowings
 
 
 
Total long-term debt
149.7 
 
149.6 
Interest rate (as a percent)
6.125% 
 
 
Unamortized discount
(0.3)
 
(0.4)
Par value of senior notes
150 
 
 
6.125% senior notes due 2016 |
Significant Observable Inputs (Level 2)
 
 
 
Borrowings
 
 
 
Fair value of notes
165.7 
 
 
Revolving credit facility
 
 
 
Borrowings
 
 
 
Remaining borrowing capacity
600.0 
 
 
Interest on borrowings
 
 
Industrial development and revenue bonds through 2018
 
 
 
Borrowings
 
 
 
Total long-term debt
4.5 
 
4.5 
Other, including capital lease obligations
 
 
 
Borrowings
 
 
 
Total long-term debt
0.2 
 
0.4 
Uncommitted line of credit
 
 
 
Borrowings
 
 
 
Maximum borrowing capacity
45.0 
 
45.0 
Average interest rate (as a percent)
 
1.50% 
 
Amount outstanding
$ 0 
 
 
Retirement Plans (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Defined Contribution Plans
 
 
 
 
 
Defined contribution plan expense recognized
$ 2.9 
$ 2.7 
$ 9.4 
$ 8.8 
 
Expected amount of contribution to defined contribution plans in current fiscal year
12.3 
 
12.3 
 
 
Maximum percentage of employee compensation match by employer to employee stock ownership plan
 
 
4.00% 
 
 
Maximum percentage of employee compensation match by employer to non union employee stock ownership plan
 
 
50.00% 
 
 
Shares held by the ESOP plan
1.7 
 
1.7 
 
1.8 
Defined Benefit Plans
 
 
 
 
 
Components of net periodic benefit cost
 
 
 
 
 
Service cost
1.3 
1.4 
3.9 
3.5 
 
Interest cost
1.9 
3.8 
5.8 
8.7 
 
Expected return on plan assets
(3.1)
(5.3)
(9.2)
(12.4)
 
Amortization of unrecognized loss
1.4 
1.3 
4.2 
3.9 
 
Net periodic benefit cost
1.5 
1.2 
4.7 
3.7 
 
Company's contribution to pension plan
 
 
 
Defined Benefit Plans |
Minimum |
Forecast
 
 
 
 
 
Components of net periodic benefit cost
 
 
 
 
 
Company's contribution to pension plan
 
 
 
 
Company's required contribution to pension plan
 
 
 
 
Defined Benefit Plans |
Maximum |
Forecast
 
 
 
 
 
Components of net periodic benefit cost
 
 
 
 
 
Company's contribution to pension plan
 
 
4.0 
 
 
Post-retirement Welfare Plans
 
 
 
 
 
Components of net periodic benefit cost
 
 
 
 
 
Interest cost
 
0.1 
0.1 
0.3 
 
Amortization of unrecognized loss
0.1 
 
0.2 
 
 
Net periodic benefit cost
0.1 
0.1 
0.3 
0.3 
 
Executive supplemental and director defined benefit pension plans |
Forecast
 
 
 
 
 
Components of net periodic benefit cost
 
 
 
 
 
Company's contribution to pension plan
 
 
$ 1.1 
 
 
Product Warranties (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Change in the Company's aggregate product warranty liabilities, including accrued costs and loss reserves
 
 
 
 
 
Beginning Reserve
 
 
$ 16.9 
 
 
Current year provision
 
 
12.5 
 
 
Current year claims
 
 
(13.6)
 
 
Ending Reserve
15.8 
 
15.8 
 
 
Deferred revenue recognized due to extended product warranty revenues
4.4 
4.5 
12.9 
12.8 
 
Deferred revenue
 
 
 
 
 
Current
16.7 
 
16.7 
 
16.8 
Long-term
140.7 
 
140.7 
 
135.4 
Deferred revenue liability
157.4 
 
157.4 
 
152.2 
Brake pads
 
 
 
 
 
Deferred revenue
 
 
 
 
 
Current
$ 0.4 
 
$ 0.4 
 
$ 0.8 
Other Long-Term Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Sep. 30, 2013
Dec. 31, 2012
Other Long-Term Liabilities
 
 
Deferred taxes and other tax liabilities
$ 206.8 
$ 246.1 
Pension and other post-retirement obligations
23.2 
23.9 
Long-term workers compensation
17.0 
17.0 
Deferred credits
5.3 
14.4 
Deferred compensation
10.8 
7.7 
Other
1.3 
1.6 
Total
$ 264.4 
$ 310.7 
Accumulated Other Comprehensive Income (Loss) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Accumulated balances for each classification of comprehensive income (loss)
 
 
 
 
Balance at the beginning of the period
$ (43.7)
$ (48.0)
$ (35.5)
$ (45.0)
Other comprehensive income (loss) before reclassifications
11.5 
4.7 
1.6 
0.3 
Amounts reclassified from accumulated other comprehensive loss
1.4 
1.2 
4.0 
3.5 
Income tax expense
(0.6)
(0.5)
(1.5)
(1.4)
Net Other comprehensive income (loss)
12.3 
5.5 
4.1 
2.4 
Balance at the end of the period
(31.4)
(42.6)
(31.4)
(42.6)
Accrued post-retirement benefit liability
 
 
 
 
Accumulated balances for each classification of comprehensive income (loss)
 
 
 
 
Balance at the beginning of the period
(31.7)
(39.1)
(34.1)
(40.7)
Other comprehensive income (loss) before reclassifications
 
 
0.5 
 
Amounts reclassified from accumulated other comprehensive loss
1.5 
1.3 
4.4 
3.9 
Income tax expense
(0.6)
(0.5)
(1.6)
(1.5)
Net Other comprehensive income (loss)
0.9 
0.8 
3.3 
2.4 
Balance at the end of the period
(30.8)
(38.3)
(30.8)
(38.3)
Foreign currency translation
 
 
 
 
Accumulated balances for each classification of comprehensive income (loss)
 
 
 
 
Balance at the beginning of the period
(13.1)
(10.3)
(2.7)
(5.9)
Other comprehensive income (loss) before reclassifications
11.5 
4.7 
1.1 
0.3 
Net Other comprehensive income (loss)
11.5 
4.7 
1.1 
0.3 
Balance at the end of the period
(1.6)
(5.6)
(1.6)
(5.6)
Hedging activities
 
 
 
 
Accumulated balances for each classification of comprehensive income (loss)
 
 
 
 
Balance at the beginning of the period
1.1 
1.4 
1.3 
1.6 
Amounts reclassified from accumulated other comprehensive loss
(0.1)
(0.1)
(0.4)
(0.4)
Income tax expense
 
 
0.1 
0.1 
Net Other comprehensive income (loss)
(0.1)
(0.1)
(0.3)
(0.3)
Balance at the end of the period
$ 1.0 
$ 1.3 
$ 1.0 
$ 1.3 
Subsequent Event (Details) (Subsequent event, Carlisle Transportation Products, USD $)
In Millions, unless otherwise specified
1 Months Ended
Oct. 31, 2013
Sep. 30, 2013
Subsequent event |
Carlisle Transportation Products
 
 
Subsequent event
 
 
Cash consideration from sale of business held-for-sale
$ 375.0 
 
Major classes of assets and associated liabilities of the Transportation Products disposal group subject to the sale
 
 
Cash and cash equivalents
 
0.5 
Receivables, net of allowance
 
84.0 
Inventories
 
181.5 
Property, plant and equipment
 
162.2 
Other assets
 
7.4 
Total assets
 
435.6 
Current liabilities
 
84.6 
Other liabilities
 
1.5 
Total liabilities
 
$ 86.1