CARLISLE COMPANIES INC, 10-Q filed on 7/24/2012
Quarterly Report
Document and Entity Information
6 Months Ended
Jun. 30, 2012
Jul. 20, 2012
Document and Entity Information
 
 
Entity Registrant Name
CARLISLE COMPANIES INC 
 
Entity Central Index Key
0000790051 
 
Document Type
10-Q 
 
Document Period End Date
Jun. 30, 2012 
 
Amendment Flag
false 
 
Current Fiscal Year End Date
--12-31 
 
Entity Current Reporting Status
No 
 
Entity Filer Category
Large Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
62,590,346 
Document Fiscal Year Focus
2012 
 
Document Fiscal Period Focus
Q2 
 
Condensed Consolidated Statements of Comprehensive Income (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Net sales
$ 984.6 
$ 870.8 
$ 1,873.9 
$ 1,564.4 
Cost and expenses:
 
 
 
 
Cost of goods sold
729.2 
687.1 
1,407.3 
1,233.6 
Selling and administrative expenses
106.0 
92.2 
213.5 
177.9 
Research and development expenses
8.5 
7.3 
16.3 
14.3 
Other income (loss), net
0.6 
(1.2)
0.3 
(2.0)
Earnings before interest and income taxes
140.3 
85.4 
236.5 
140.6 
Interest expense, net
6.5 
4.9 
13.0 
10.0 
Earnings before income taxes from continuing operations
133.8 
80.5 
223.5 
130.6 
Income tax expense (Note 8)
44.4 
25.2 
74.1 
42.0 
Income from continuing operations
89.4 
55.3 
149.4 
88.6 
Discontinued operations (Note 5)
 
 
 
 
Income (loss) from discontinued operations
3.6 
(1.3)
3.6 
(1.2)
Income tax (income) expense
0.2 
(0.6)
0.2 
(0.6)
Income (loss) from discontinued operations
3.4 
(0.7)
3.4 
(0.6)
Net income
92.8 
54.6 
152.8 
88.0 
Basic earnings per share attributable to common shares (Note 9)
 
 
 
 
Income from continuing operations (in dollars per share)
$ 1.42 
$ 0.89 
$ 2.39 
$ 1.43 
Income (loss) from discontinued operations (in dollars per share)
$ 0.06 
$ (0.01)
$ 0.05 
$ (0.01)
Basic Earnings per share (in dollars per share)
$ 1.48 
$ 0.88 
$ 2.44 
$ 1.42 
Diluted earnings per share attributable to common shares (Note 9)
 
 
 
 
Income from continuing operations (in dollars per share)
$ 1.39 
$ 0.87 
$ 2.34 
$ 1.40 
Income (loss) from discontinued operations (in dollars per share)
$ 0.06 
$ (0.01)
$ 0.05 
$ (0.01)
Diluted earnings per share (in dollars per share)
$ 1.45 
$ 0.86 
$ 2.39 
$ 1.39 
Average shares outstanding - in thousands (Note 9)
 
 
 
 
Basic (in shares)
62,419 
61,449 
62,166 
61,293 
Diluted (in shares)
63,797 
62,701 
63,483 
62,425 
Dividends declared and paid
11.3 
10.6 
22.5 
21.1 
Dividends declared and paid per share (in dollars per share)
$ 0.18 
$ 0.17 
$ 0.36 
$ 0.34 
Comprehensive Income
 
 
 
 
Net income
92.8 
54.6 
152.8 
88.0 
Other comprehensive income (loss)
 
 
 
 
Change in foreign currency translation, net of tax
(8.7)
1.4 
(4.4)
5.0 
Change in accrued post-retirement benefit liability, net of tax
0.8 
0.7 
1.6 
1.4 
Loss on hedging activities, net of tax
(0.1)
(0.1)
(0.2)
(0.2)
Other comprehensive income (loss)
(8.0)
2.0 
(3.0)
6.2 
Comprehensive income
$ 84.8 
$ 56.6 
$ 149.8 
$ 94.2 
Condensed Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Current assets:
 
 
Cash and cash equivalents
$ 76.8 
$ 74.7 
Receivables, less allowance of $10.9 in 2012 and $9.5 in 2011
627.2 
486.4 
Inventories (Note 11)
549.6 
539.0 
Deferred income taxes (Note 8)
50.3 
51.3 
Prepaid expenses and other current assets
30.9 
60.1 
Current assets held for sale (Note 5)
 
2.6 
Total current assets
1,334.8 
1,214.1 
Property, plant and equipment, net of accumulated depreciation of $612.8 in 2012 and $577.1 in 2011 (Note 12)
592.4 
560.3 
Other assets:
 
 
Goodwill, net (Note 13)
858.2 
845.2 
Other intangible assets, net (Note 13)
485.6 
479.2 
Other long-term assets
25.6 
19.0 
Non-current assets held for sale (Note 5)
 
20.1 
Total other assets
1,369.4 
1,363.5 
TOTAL ASSETS
3,296.6 
3,137.9 
Current liabilities:
 
 
Short-term debt, including current maturities (Note 15)
195.0 
158.1 
Accounts payable
312.8 
260.8 
Accrued expenses
184.5 
178.3 
Deferred revenue (Note 17)
16.6 
16.3 
Total current liabilities
708.9 
613.5 
Long-term liabilities:
 
 
Long-term debt (Note 15)
504.5 
604.3 
Deferred revenue (Note 17)
133.9 
129.7 
Other long-term liabilities (Note 18)
294.5 
290.3 
Total long-term liabilities
932.9 
1,024.3 
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; 62,565,246 outstanding in 2012 and 61,664,813 outstanding in 2011
78.7 
78.7 
Additional paid-in capital
147.2 
120.2 
Cost of shares in treasury - 16,096,002 shares in 2012 and 16,467,760 shares in 2011
(219.3)
(219.9)
Accumulated other comprehensive loss
(48.1)
(45.0)
Retained earnings
1,696.3 
1,566.1 
Total shareholders' equity
1,654.8 
1,500.1 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$ 3,296.6 
$ 3,137.9 
Condensed Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Condensed Consolidated Balance Sheets
 
 
Receivables, allowance (in dollars)
$ 10.9 
$ 9.5 
Property, plant and equipment, accumulated depreciation (in dollars)
$ 612.8 
$ 577.1 
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, issued shares
78,661,248 
78,661,248 
Common stock, outstanding shares
62,565,246 
61,664,813 
Treasury, shares
16,096,002 
16,467,760 
Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Operating activities
 
 
Net income
$ 152.8 
$ 88.0 
Reconciliation of net income to cash flows from operating activities:
 
 
Depreciation
37.0 
36.5 
Amortization
15.5 
9.1 
Non-cash compensation, net of tax benefit
4.0 
4.3 
Gain on sale of businesses
(3.7)
 
Loss on disposal of property and equipment, net
0.8 
0.8 
Deferred taxes
(4.3)
(0.4)
Changes in assets and liabilities, excluding effects of acquisitions and divestitures:
 
 
Receivables
(138.7)
(177.6)
Inventories
(2.4)
(11.7)
Prepaid expenses and other assets
23.6 
12.1 
Accounts payable
49.7 
76.4 
Accrued expenses and deferred revenues
14.0 
(26.6)
Long-term liabilities
5.2 
2.7 
Other operating activities
0.8 
0.1 
Net cash provided by operating activities
154.3 
13.7 
Investing activities
 
 
Capital expenditures
(60.6)
(33.8)
Acquisitions, net of cash
(49.3)
(2.7)
Proceeds from sale of property and equipment
 
1.3 
Proceeds from sale of businesses
25.8 
5.3 
Other investing activities
 
0.1 
Net cash used in by investing activities
(84.1)
(29.8)
Financing activities
 
 
Net change in short-term borrowings and revolving credit lines
(64.3)
90.9 
Redemption of Hawk bonds
 
(59.0)
Dividends
(22.5)
(21.1)
Treasury shares and stock options, net
18.5 
12.2 
Net cash provided by (used in) financing activities
(68.3)
23.0 
Effect of exchange rate changes on cash
0.2 
2.8 
Change in cash and cash equivalents
2.1 
9.7 
Cash and cash equivalents
 
 
Beginning of period
74.7 
89.4 
End of period
$ 76.8 
$ 99.1 
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 from Carlisle Transportation Products (“CTP”) to Carlisle Brake & Friction (“CBF”).

New Accounting Pronouncements
New Accounting Pronouncements

Note 2 - New Accounting Pronouncements

 

Newly Adopted Accounting Standards

 

In September 2011, FASB issued ASU 2011-08, Guidance on Testing Goodwill for Impairment.  ASU 2011-08 gives entities testing goodwill for impairment the option of performing a qualitative assessment before calculating the fair value of a reporting unit in Step 1 of the goodwill impairment test.  If entities determine, on the basis of qualitative factors, that the fair value of a reporting unit is more likely than not less than the carrying amount, the two-step impairment test would be required.  Otherwise, further testing would not be needed.  ASU 2011-08 is effective for fiscal and interim reporting periods within those years beginning after December 15, 2011.    The adoption of this ASU had no material effect on the Company’s consolidated financial statements.

 

In May 2011, the Financial Accounting Standards Board (“FASB”) issued ASU 2011-04, Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs.  ASU 2011-04 provides guidance to develop a single, converged fair value framework; amend the requirements of fair value measurement; and enhance related disclosure requirements, particularly for recurring Level 3 fair value measurements. This guidance clarifies the concepts of (i) the highest and best use and valuation premise for nonfinancial assets, (ii) application to financial assets and financial liabilities with offsetting positions in market risks or counterparty credit risk, (iii) premiums or discounts in fair value measurements, and (iv) fair value measurement of an instrument classified in a reporting entity’s shareholders’ equity. ASU 2011-04 is effective for fiscal and interim reporting periods beginning after December 15, 2011.  The adoption of this ASU had no 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 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, agriculture and construction.

 

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

 

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, and test and measurement equipment 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.

 

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.

 

Effective January 1, 2012, the Company’s Styled Wheels business was transitioned from CTP to CBF.  Styled wheels continue to be manufactured by CTP, but are marketed and sold by the performance racing group within CBF.  Related intersegment sales of $13.7 million from CTP to CBF during the six months ended June 30, 2012 have been eliminated upon consolidation.  As a result of this transition, in accordance with ASC 280, Segment Reporting, the Company has presented all of the working capital related to the Styled Wheels business in the CBF reportable segment, as well as attributable goodwill based on the fair value of the Styled Wheels business relative to consolidated CTP.  Prior period results have been retrospectively adjusted to reflect this change in presentation.

 

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

 

Three Months Ended June 30,

 

2012

 

2011

 

In millions

 

Sales(1)

 

EBIT

 

Sales(1)

 

EBIT

 

Carlisle Construction Materials

 

$

470.0

 

$

85.5

 

$

412.0

 

$

54.2

 

Carlisle Transportation Products(3)

 

$

203.3

 

$

18.4

 

$

195.7

 

$

5.3

 

Carlisle Brake & Friction(3)

 

$

133.3

 

$

24.8

 

$

128.0

 

$

20.8

 

Carlisle Interconnect Technologies

 

$

114.7

 

$

17.4

 

$

71.7

 

$

11.7

 

Carlisle FoodService Products

 

$

63.3

 

$

5.7

 

$

63.4

 

$

5.3

 

Corporate

 

$

—

 

$

(11.5

)

$

—

 

$

(11.9

)

Total

 

$

984.6

 

$

140.3

 

$

870.8

 

$

85.4

 

 

 

Six Months Ended June 30,

 

2012

 

2011

 

In millions

 

Sales(1)

 

EBIT

 

Assets(2)

 

Sales(1)

 

EBIT

 

Assets(2)

 

Carlisle Construction Materials

 

$

823.9

 

$

127.5

 

$

944.7

 

$

663.3

 

$

72.2

 

$

728.7

 

Carlisle Transportation Products(3)

 

$

434.8

 

$

38.1

 

$

560.8

 

$

396.5

 

$

18.8

 

$

559.5

 

Carlisle Brake & Friction(3)

 

$

267.2

 

$

50.0

 

$

700.4

 

$

247.1

 

$

40.6

 

$

706.7

 

Carlisle Interconnect Technologies

 

$

225.4

 

$

34.1

 

$

794.7

 

$

137.4

 

$

20.6

 

$

416.6

 

Carlisle FoodService Products

 

$

122.6

 

$

11.2

 

$

210.8

 

$

120.1

 

$

10.8

 

$

211.7

 

Corporate

 

$

—

 

$

(24.4

)

$

85.2

 

$

—

 

$

(22.4

)

$

78.7

 

Total

 

$

1,873.9

 

$

236.5

 

$

3,296.6

 

$

1,564.4

 

$

140.6

 

$

2,701.9

 

 

 

(1) Excludes intersegment sales

(2) Corporate assets include assets of ceased operations not classified as held for sale

(3) CTP and CBF results and assets reflect January 1, 2012 resegmentation of Styled Wheels business from CTP to CBF.

See above for further discussion.

Acquisitions
Acquisitions

Note 4 - Acquisitions

 

2012 Acquisition

 

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 will operate within the Construction Materials segment.

 

The following table summarizes the consideration transferred to acquire Hertalan 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.

 

 

 

Preliminary
Allocation

 

Measurement
Period
Adjustments

 

Revised
Preliminary
Allocation

 

(in millions)

 

As of
3/31/2012

 

Three Months
Ended
6/30/2012

 

As of
6/30/2012

 

 

 

 

 

 

 

 

 

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 preliminary 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 preliminary goodwill was assigned to the Construction Materials reporting unit. Preliminary indefinite-lived intangible assets of $8.0 million represent acquired trade names.  The $14.7 million value preliminarily allocated to definite-lived intangible assets represents customer relationships with preliminary useful lives of 9 years.

 

The fair values of the inventory, property, plant and equipment, and intangible assets are preliminary and subject to change pending receipt of the final third-party valuations for those assets.  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 which are preliminary and subject to change pending final assessment of the acquisition date fair values and tax basis of the acquired assets and assumed liabilities.

 

Hertalan contributed revenues of $12.6 million and earnings before interest and taxes (“EBIT”) of less than $0.1 million from the acquisition date through June 30, 2012 which includes $1.2 million reflected in Cost of goods sold related to recording the acquired inventory at estimated fair value.

 

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 will operate within the Interconnect Technologies segment.

 

The following table summarizes the consideration transferred to acquire Tri-Star 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.

 

 

 

Preliminary
Allocation

 

Measurement
Period
Adjustments

 

Revised
Preliminary
Allocation

 

(in millions)

 

As of
12/31/2011

 

Six Months
Ended 6/30/2012

 

As of
6/30/2012

 

 

 

 

 

 

 

 

 

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

)

1.5

 

(57.4

)

Other long-term liabilities

 

(0.4

)

—

 

(0.4

)

 

 

 

 

 

 

 

 

Total identifiable net assets

 

132.2

 

0.3

 

132.5

 

 

 

 

 

 

 

 

 

Goodwill

 

$

156.7

 

$

0.1

 

$

156.8

 

 

The preliminary 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 preliminary goodwill was assigned to the Interconnect Technologies segment. Preliminary indefinite-lived intangible assets of $19.4 million represent acquired trade names.  The $121.5 million value preliminarily allocated to definite-lived intangible assets consists of $94.8 million of customer relationships with preliminary useful lives ranging from 12 to 21 years, $23.2 million of acquired technology with preliminary useful lives of 16 years, $2.5 million of non-compete agreements with preliminary useful lives ranging from 3 to 5 years, and $1.0 million of customer certifications and approvals with useful lives of 3 years.

 

The fair values of the inventory, property, plant and equipment, and other intangible assets are preliminary and subject to change pending receipt of the final third-party valuations for those assets.  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 which are preliminary and subject to change pending final assessment of the acquisition date fair values and tax basis of the acquired assets and assumed liabilities.

 

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, most of which were subsequently repaid, as well as 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 will operate 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 the discounted cash flow method based on financial projections of the acquired company.

 

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 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.

 

 

 

Preliminary
Allocation

 

Measurement
Period Adjustments

 

Revised
Preliminary
Allocation

 

(in millions)

 

As of
12/31/2011

 

Six Months Ended
6/30/2012

 

As of
6/30/2012

 

Consideration transferred:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash consideration

 

$

113.4

 

$

—

 

$

113.4

 

Contingent consideration

 

5.2

 

—

 

5.2

 

 

 

 

 

 

 

 

 

Total fair value of 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 revised preliminary purchase price allocation reflects updated fair value estimates for assets acquired and liabilities assumed, based on information that is currently available.  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 preliminary goodwill was assigned to the Construction Materials segment. Preliminary indefinite-lived intangible assets of $6.9 million represent acquired trade names.  Of the $57.1 million value preliminarily allocated to definite-lived intangible assets, approximately $33.3 million was allocated to patents, with preliminary useful lives ranging from 10 to 20 years and $23.8 million was allocated to customer relationships, with preliminary useful lives of 19 years.

 

The fair values of the property, plant and equipment and other intangible assets are preliminary and subject to change pending receipt of the final third-party valuations for those assets.  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 which are preliminary and subject to change pending final assessment of the acquisition date fair values and tax basis of the acquired assets and assumed liabilities.

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

Note 5 - Discontinued Operations and Assets Held for Sale

 

The Company had income before income taxes of $3.6 million from discontinued operations in the six months ended June 30, 2012 and loss before income taxes from discontinued operations of $1.2 million in the six months ended June 30, 2011.

 

On April 19, 2012 the Company entered into an agreement with the buyer of its specialty trailer business whereby the contingent consideration related to the October 2010 sale was settled for $3.75 million.  This amount was recognized as a gain within discontinued operations during the three months ended June 30, 2012.

 

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 PDT Profiles.

 

At December 31, 2011, $22.7 million of assets held for sale included inventory, property, plant and equipment, and related intangible assets of the PDT Profiles.

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 six months ended June 30, for 2012 and 2011, respectively:

 

 

 

Three Months Ended June 30,

 

Six Month Ended June 30,

 

In millions

 

2012

 

2011

 

2012

 

2011

 

Cost of goods sold

 

$

1.8

 

$

0.6

 

$

1.9

 

$

3.0

 

Selling and administrative expenses

 

(0.2

)

—

 

(0.2

)

—

 

Other expense, net

 

—

 

—

 

0.3

 

—

 

Total exit and disposal costs

 

$

1.6

 

$

0.6

 

$

2.0

 

$

3.0

 

 

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

 

 

 

Three Months Ended June 30,

 

Six Month Ended June 30,

 

In millions

 

2012

 

2011

 

2012

 

2011

 

Termination benefits

 

$

1.7

 

$

(0.3

)

$

1.7

 

$

0.4

 

Asset writedowns

 

—

 

—

 

0.3

 

—

 

Other associated costs

 

(0.1

)

0.9

 

—

 

2.6

 

Total exit and disposal costs

 

$

1.6

 

$

0.6

 

$

2.0

 

$

3.0

 

 

Other associated costs are primarily related to severance and relocation costs.

 

Accrued exit and disposal costs of $2.3 million and $1.2 million were included in Accrued expenses at June 30, 2012 and December 31, 2011, respectively.

 

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.  The Company incurred $0.3 million of exit and disposal costs, consisting of employee termination costs.  Included in Accrued Expenses at June 30, 2012 was $0.3 million related to unpaid costs associated with this project.  The expected cost of the project is $1.2 million, including employee termination costs, equipment relocation, and other associated costs.

 

Carlisle Transportation Products — During the three months ended June 30, 2012, the Company incurred $1.5 million in plant restructuring costs related to the transfer of certain CTP international manufacturing operations. The expected cost of the project is $1.9 million, including employee termination costs, equipment relocation, and other associated costs.

 

In the third quarter of 2009, the Company announced plans to consolidate its tire manufacturing operations in Heflin, AL, Carlisle, PA and portions of Buji, China into a new facility in Jackson, TN.  The consolidation was substantially completed in first quarter of 2011; however additional activities related to this consolidation were completed in the second quarter of 2012.  During the first six months of 2012, the Company incurred $0.1 million of exit and disposal costs.  During the first six months of 2011, the Company incurred $2.6 million of exit and disposal costs associated with the project.  The total cost of the project was approximately $20.9 million and the Company expects no additional costs to be incurred.  Included in Accrued Expenses at June 30, 2012 was $0.3 million related to unpaid severance.

 

Carlisle Brake & Friction — In the third quarter of 2011, the Company decided to close its braking plant in Canada.  The project is expected to cost approximately $1.1 million, including employee termination costs and other associated costs.  Costs incurred in during the first six months of 2012 were $0.1 million, 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 June 30, 2012 a $0.3 million liability, reported in Accrued expenses, exists for lease termination costs.  The company expects no additional costs to be incurred related to this project.

 

In the fourth quarter of 2009, within its off-highway braking business, the Company announced plans to close its friction product manufacturing facility in Logansport, IN and to consolidate operations into its locations in Hangzhou, China and Bloomington, IN. This consolidation was substantially completed in the fourth quarter of 2010; however, additional activities related to the closure of the facility occurred in 2011.  The total cost of this consolidation project was $5.3 million.  Costs incurred in the first six months of 2011 related to this consolidation were $0.4 million, primarily consisting of employee termination costs and other relocation 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 $4.2 million and $3.5 million for the three months ended June 30, 2012 and 2011, respectively, and $9.9 million and $7.3 million for the six months ended June 30, 2012 and 2011, 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 June 30, 2012, 3,487,356 shares were available for grant under this plan, of which 872,725 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 June 30, 2012, 279,584 shares were available for grant under this plan, of which 49,584 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

 

In the first quarter of 2012 the Company awarded 481,215 stock options, 83,745 restricted stock awards, 83,745 performance share awards and 11,298 restricted stock units with an aggregate grant-date fair value of approximately $17.6 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 $1.6 million and $1.9 million for the three months ended June 30, 2012 and 2011, respectively, and $3.5 million and $2.8 million for the six months ended June 30, 2012 and 2011, 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 2012 and 2011 were as follows:

 

 

 

2012

 

2011

 

Expected dividend yield

 

1.5

%

1.7

%

Expected life in years

 

5.78

 

5.76

 

Expected volatility

 

36.0

%

32.0

%

Risk-free interest rate

 

0.9

%

2.2

%

Weighted average fair value

 

$

14.57

 

$

10.61

 

 

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 vest ratably over five years.  The $49.56 grant date fair value of the 2012 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 day 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 2012 performance shares of $69.76 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 $49.56 grant date fair value of the 2012 restricted stock units is based on the closing market price of the stock on the February 1, 2012, the day of the grant.

Income Taxes
Income Taxes

Note 8 - Income Taxes

 

The effective income tax rate on continuing operations for the six months ended June 30, 2012 was 33.2% compared to an effective income tax rate of 32.2% for the six months ended June 30, 2011.  The increase in the year to date tax rate is primarily due to expiration of favorable legislation related to certain foreign income and to nonrecurring transactions which created tax benefits in the second quarter of 2011.

 

The year to date effective tax rate of 33.2% varies from the United States statutory rate of 35.0% primarily due to the deduction for U.S. production activities and earnings in foreign jurisdictions taxed at rates lower than the U.S. federal rate.

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 June 30,

 

Six Months Ended June 30,

 

In millions, except share and per share amounts

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

89.4

 

$

55.3

 

$

149.4

 

$

88.6

 

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

 

(11.3

)

(10.6

)

(22.5

)

(21.1

)

Undistributed earnings

 

78.1

 

44.7

 

126.9

 

67.5

 

Percent allocated to common shareholders (1)

 

99.4

%

99.0

%

99.4

%

99.0

%

 

 

77.6

 

44.3

 

126.2

 

66.8

 

Add: dividends declared - common stock

 

11.2

 

10.5

 

22.4

 

20.9

 

Numerator for basic and diluted EPS

 

$

88.8

 

$

54.8

 

$

148.6

 

$

87.7

 

 

 

 

 

 

 

 

 

 

 

Denominator (in thousands):

 

 

 

 

 

 

 

 

 

Denominator for basic EPS: weighted-average common shares outstanding

 

62,419

 

61,449

 

62,166

 

61,293

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

Performance awards

 

505

 

309

 

505

 

309

 

Stock options

 

873

 

943

 

812

 

823

 

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

 

63,797

 

62,701

 

63,483

 

62,425

 

 

 

 

 

 

 

 

 

 

 

Per share income from continuing operations:

 

 

 

 

 

 

 

 

 

Basic

 

$

1.42

 

$

0.89

 

$

2.39

 

$

1.43

 

Diluted

 

$

1.39

 

$

0.87

 

$

2.34

 

$

1.40

 

 

 

(1) Basic weighted-average common shares outstanding

 

62,419

 

61,449

 

62,166

 

61,293

 

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

 

62,783

 

62,050

 

62,529

 

61,892

 

Percent allocated to common shareholders

 

99.4

%

99.0

%

99.4

%

99.0

%

 

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 June 30,

 

Six Months Ended June 30,

 

In millions, except share amounts

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

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

 

$

3.4

 

$

(0.7

)

$

3.4

 

$

(0.6

)

 

 

 

 

 

 

 

 

 

 

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

 

$

92.2

 

$

54.1

 

$

151.9

 

$

87.2

 

 

 

 

 

 

 

 

 

 

 

Antidilutive stock options excluded from EPS calculation (2)

 

—

 

200

 

—

 

200

 

 

 

(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

 

 

 

June 30,

 

Assets

 

Inputs

 

Inputs

 

In millions

 

2012

 

Level 1

 

Level 2

 

Level 3

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

76.8

 

$

76.8

 

$

—

 

$

—

 

Short-term investments

 

1.6

 

1.6

 

—

 

—

 

Total assets measured at fair value

 

$

78.4

 

$

78.4

 

$

—

 

$

—

 

 

 

 

 

 

 

 

 

 

 

Commodity swap agreements

 

$

0.1

 

$

—

 

$

0.1

 

$

—

 

Contingent consideration

 

$

4.9

 

$

—

 

$

—

 

$

4.9

 

Total liabilities measured at fair value

 

$

5.0

 

$

—

 

$

0.1

 

$

4.9

 

 

Short-term investments of $1.6 million at June 30, 2012 consist of investments held in mutual funds and cash for the Company’s deferred compensation program and are classified in the condensed consolidated balance sheet at June 30, 2012 in Prepaid expenses and other current assets.

 

Commodity swap agreements at June 30, 2012 relate to swap agreements held for purposes of hedging the Company’s exposure to fluctuations in the prices of silver and copper, which are included in 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 Accounts payable in the condensed consolidated balance sheet as of June 30, 2012 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.  The fair value was €3.9 million, or $4.9 million, at June 30, 2012.  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

 

2011

 

Level 1

 

Level 2

 

Level 3

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

74.7

 

$

74.7

 

$

—

 

$

—

 

Short-term investments

 

0.6

 

0.6

 

—

 

—

 

Total assets measured at fair value

 

$

75.3

 

$

75.3

 

$

—

 

$

—

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

5.2

 

$

—

 

$

—

 

$

5.2

 

Total liabilities measured at fair value

 

$

5.2

 

$

—

 

$

—

 

$

5.2

 

 

Short-term investments of $0.6 million at December 31, 2011 consist of investments held in mutual funds and cash for the Company’s deferred compensation program and are classified in the consolidated balance sheet at December 31, 2011 in Prepaid expenses and other current assets.  Contingent consideration represents fair value of the earn-out associated with the purchase of PDT.

 

Non-Recurring Measurements

 

For the six months ended June 30, 2012 and 2011, there were no non-recurring fair value measurements subsequent to initial recognition.  See Note 4 for information regarding assets acquired and liabilities assumed in the Hertalan, Tri-Star, and PDT acquisitions measured at fair value at initial recognition.

Inventories
Inventories

Note 11 - Inventories

 

The components of inventories at June 30, 2012 and December 31, 2011 were as follows:

 

 

 

June 30,

 

December 31,

 

In millions

 

2012

 

2011

 

Finished goods

 

$

320.9

 

$

308.7

 

Work-in-process

 

72.1

 

56.7

 

Raw materials

 

188.2

 

179.8

 

Capitalized variances

 

6.6

 

30.2

 

Reserves

 

(38.2

)

(33.8

)

 

 

549.6

 

541.6

 

Inventories associated with assets held for sale

 

—

 

(2.6

)

Inventories

 

$

549.6

 

$

539.0

 

 

Property, Plant and Equipment
Property, Plant and Equipment

Note 12—Property, Plant and Equipment

 

The components of property, plant and equipment at June 30, 2012 and December 31, 2011 were as follows:

 

 

 

June 30,

 

December 31,

 

In millions

 

2012

 

2011

 

Land

 

$

38.7

 

$

36.5

 

Buildings and leasehold improvements

 

286.0

 

276.3

 

Machinery and equipment

 

807.0

 

790.1

 

Projects in progress

 

73.5

 

38.6

 

 

 

1,205.2

 

1,141.5

 

Accumulated depreciation

 

(612.8

)

(577.4

)

Property, plant and equipment, net, associated with assets held for sale

 

—

 

(3.8

)

Property, plant and equipment, net

 

$

592.4

 

$

560.3

 

 

Property, plant and equipment at June 30, 2012 include assets acquired from Hertalan and at December 31, 2011 include assets acquired from Tri-Star and PDT, 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 six months ended June 30, 2012 were as follows:

 

 

 

Construction

 

Transportation

 

Brake and

 

Interconnect

 

FoodService

 

Disc.

 

 

 

In millions

 

Materials

 

Products

 

Friction

 

Technologies

 

Products

 

Ops

 

Total

 

Gross balance at January 1, 2012

 

112.6

 

155.5

 

226.7

 

345.6

 

60.3

 

47.4

 

948.1

 

Goodwill acquired during the six month period

 

20.6

 

—

 

—

 

—

 

—

 

—

 

20.6

 

Measurement period adjustments

 

(6.5

)

—

 

—

 

0.1

 

—

 

—

 

(6.4

)

Resegmentation of Styled Wheels business

 

—

 

(8.0

)

8.0

 

—

 

—

 

—

 

—

 

Currency translation

 

(1.3

)

—

 

0.1

 

—

 

—

 

—

 

(1.2

)

Gross balance at June 30, 2012

 

125.4

 

147.5

 

234.8

 

345.7

 

60.3

 

47.4

 

961.1

 

Accumulated impairment losses

 

—

 

(55.5

)

—

 

—

 

—

 

(47.4

)

(102.9

)

Net balance at June 30, 2012

 

$

125.4

 

$

92.0

 

$

234.8

 

$

345.7

 

$

60.3

 

$

—

 

$

858.2

 

 

On March 9, 2012, the Company acquired Hertalan for a total purchase price of €37.3 million, or $48.9 million, net of €0.1 million, or $0.1 million, cash acquired.  The resulting preliminary goodwill recorded of $13.5 million was allocated to the Construction Materials reporting unit.  Measurement period adjustments during the six months ended June 30, 2012 resulted in a $7.1 million reduction and a $0.6 million increase, respectively, to the preliminary goodwill of Hertalan and PDT within the Construction Materials reporting unit, and a $0.1 million increase to the preliminary goodwill of Tri-Star within the Interconnect Technologies reporting unit.  See Note 4 for further information regarding these acquisitions.

 

The Company’s Other intangible assets, net at June 30, 2012 were as follows:

 

 

 

Acquired

 

Accumulated

 

Net Book

 

In millions

 

Cost

 

Amortization

 

Value

 

Assets subject to amortization:

 

 

 

 

 

 

 

Patents

 

$

88.7

 

$

(15.6

)

$

73.1

 

Customer Relationships

 

373.8

 

(58.5

)

315.3

 

Other

 

16.9

 

(8.1

)

8.8

 

Assets not subject to amortization:

 

 

 

 

 

 

 

Trade names

 

88.4

 

—

 

88.4

 

Other intangible assets, net

 

$

567.8

 

$

(82.2

)

$

485.6

 

 

The Company’s Other intangible assets, net at December 31, 2011 were as follows:

 

 

 

Acquired

 

Accumulated

 

Net Book

 

In millions

 

Cost

 

Amortization

 

Value

 

Assets subject to amortization:

 

 

 

 

 

 

 

Patents

 

$

139.1

 

$

(12.2

)

$

126.9

 

Customer Relationships

 

275.7

 

(47.8

)

227.9

 

Other

 

20.4

 

(7.4

)

13.0

 

Assets not subject to amortization:

 

 

 

 

 

 

 

Trade names

 

111.4

 

—

 

111.4

 

Other intangible assets, net

 

$

546.6

 

$

(67.4

)

$

479.2

 

 

Estimated amortization expense for the remainder of 2012 and the next four years is as follows: $14.7 million remaining in 2012, $29.0 million in 2013, $28.7 million in 2014, $28.3 million in 2015 and $26.6 million in 2016.

 

The net carrying values of the Company’s Other intangible assets by reportable segment as of June 30, 2012 and December 31, 2011 were as follows:

 

 

 

June 30,

 

December 31,

 

In millions

 

2012

 

2011

 

 

 

 

 

 

 

Carlisle Construction Materials

 

$

89.8

 

$

71.8

 

Carlisle Transportation Products

 

—

 

2.7

 

Carlisle Brake & Friction

 

143.0

 

144.0

 

Carlisle Interconnect Technologies

 

216.4

 

222.8

 

Carlisle FoodService Products

 

36.4

 

37.9

 

Total

 

$

485.6

 

$

479.2

 

 

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 $15.4 million and $12.7 million for the six months ended June 30, 2012 and 2011, 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 $12.8 million for the remainder of 2012, $21.9 million in 2013, $18.6 million in 2014, $15.5 million in 2015, $12.7 million in 2016, and $47.6 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 June 30, 2012.

 

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 $22.5 million and $22.9 million related to workers’ compensation claims at June 30, 2012 and December 31, 2011, respectively.  The amounts recognized are presented in Accrued expenses in the condensed consolidated balance sheets.  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.

 

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 June 30, 2012 and December 31, 2011 the Company’s borrowings were as follows:

 

 

 

June 30,

 

December 31,

 

In millions

 

2012

 

2011

 

5.125% notes due 2020, net of unamortized discount of ($1.0) and ($1.0) respectively

 

$

249.0

 

$

249.0

 

6.125% notes due 2016, net of unamortized discount of ($0.5) and ($0.5) respectively

 

149.5

 

149.5

 

Revolving credit facility

 

295.0

 

348.0

 

Industrial development and revenue bonds through 2018

 

5.5

 

5.5

 

Other, including capital lease obligations

 

0.5

 

10.4

 

Total long-term debt

 

699.5

 

762.4

 

Less current portion

 

(195.0

)

(158.1

)

Total long-term debt, net of current portion

 

$

504.5

 

$

604.3

 

 

Revolving Credit Facilities

 

As of June 30, 2012 the Company had $305.0 million available under its Third Amended and Restated Credit Agreement (the “Amended Credit Agreement”) administered by JPMorgan Chase Bank, N.A.  The $295.0 million borrowed under the Amended Credit Agreement at June 30, 2012 reflects borrowings used to fund the acquisitions of Tri-Star in December 2011 and Hertalan in March 2012, less cash generated by operations applied to reduction of debt.  Under the terms of the Amended Credit Agreement, and at the Company’s election, the full amount outstanding of $295.0 million was payable in July 2012 (30 days from the date of funding).  However, the Company has the option to rollover amounts payable, at differing tenors and interest rates, until the Facility expires in October of 2016.  The Company expects that $100.0 million of the $295.0 million outstanding will be rolled over for a period longer than one year.  Accordingly, $195.0 million has been presented in Short-term debt, including current maturities in the condensed consolidated balance sheet.

 

Uncommitted Line of Credit

 

The Company also maintains an uncommitted line of credit of which $45.0 million and $35.0 million was available for borrowing as of June 30, 2012 and December 31, 2011, respectively.  The average interest rate on the uncommitted line of credit was 1.5% and 1.5% for the six months ended June 30, 2012 and 2011, respectively.

 

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 in 2012 and 2011.

 

Other Matters

 

Cash payments for interest were $13.5 million and $11.6 million in the six months ended June 30, 2012 and 2011, respectively. Interest expense, net is presented net of interest income of $0.2 million and $0.4 million in the six months ended June 30, 2012 and 2011, respectively.

 

At June 30, 2012, the fair value of the Company’s par value $250 million, 5.125% senior notes due 2020 and par value $150 million, 6.125% senior notes due 2016, using Level 2 inputs, is approximately $282.8 million and $168.4 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.  The Company estimates that the fair value of amounts outstanding under the Facility approximates their carrying value.

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 for the six months ended June 30 were as follows:

 

 

 

Pension Benefits

 

Post-Retirement Benefits

 

 

 

Three Months Ended

 

Six Months Ended

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

June 30,

 

June 30,

 

In millions

 

2012

 

2011

 

2012

 

2011

 

2012

 

2011

 

2012

 

2011

 

Service cost

 

$

1.2

 

$

1.3

 

$

2.3

 

$

2.6

 

$

—

 

$

—

 

$

—

 

$

—

 

Interest cost

 

2.5

 

2.7

 

5.0

 

5.3

 

0.1

 

0.1

 

0.2

 

0.2

 

Expected return on plan assets

 

(3.5

)

(3.7

)

(7.1

)

(7.3

)

—

 

—

 

—

 

—

 

Amortization of unrecognized net loss

 

1.3

 

1.1

 

2.6

 

2.3

 

—

 

 

 

—

 

 

 

Net periodic benefit costs

 

$

1.5

 

$

1.4

 

$

2.8

 

$

2.9

 

$

0.1

 

$

0.1

 

$

0.2

 

$

0.2

 

 

The Company contributed $1.0 million to the pension plans during both of the six month periods ended June 30, 2012 and June 30, 2011.  The Company expects to contribute approximately $4.0 million to the pension plans in 2012.

 

Defined Contribution Plans

 

The Company maintains defined contribution plans covering a significant portion of its employees. Expenses for the plans were approximately $6.1 million and $5.7 million in the six months ended June 30, 2012 and 2011, respectively. Full year contributions in 2012 are expected to approximate $11.5 million.

 

Deferred Compensation Program

 

The Company maintains a non-qualified deferred compensation program for certain employees.  Deferred compensation liabilities of $1.4 million and $0.6 million are classified in Other long-term liabilities at June 30, 2012 and December 31, 2011, respectively.

 

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 1.8 million and 1.9 million at June 30, 2012 and December 31, 2011, respectively.

Product Warranties
Product Warranties

 

 

Note 17 - Product Warranties

 

The Company offers various warranty programs on its products, primarily installed roofing systems, braking products, 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 six months ended June 30, 2012 was as follows:

 

In millions

 

2012

 

December 31, 2011 reserve

 

$

19.9

 

Current year provision

 

7.0

 

Current year claims

 

(6.2

)

June 30, 2012 reserve

 

$

20.7

 

 

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 $8.3 million and $7.9 million for the six months ended June 30, 2012 and 2011, respectively.

 

Product warranty deferred revenue as of June 30, 2012 and December 31, 2011 was as follows:

 

 

 

June 30,

 

December 31,

 

In millions

 

2012

 

2011

 

Deferred revenue

 

 

 

 

 

Current

 

$

16.2

 

$

15.9

 

Long-term

 

132.7

 

128.6

 

Deferred revenue

 

$

148.9

 

$

144.5

 

Other Long-Term Liabilities
Other Long-Term Liabilities

Note 18 - Other Long-Term Liabilities

 

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

 

 

 

June 30,

 

December 31,

 

In millions

 

2012

 

2011

 

Deferred taxes and other tax liabilities

 

$

258.9

 

$

253.8

 

Pension and other post-retirement obligations

 

17.8

 

19.1

 

Deferred credits

 

8.8

 

9.1

 

Deferred compensation

 

6.6

 

5.5

 

Other

 

2.4

 

2.8

 

Other long-term liabilities

 

$

294.5

 

$

290.3

 

 

Deferred credits consist primarily of contingent consideration for acquisitions and liabilities related to straight-line recognition of leases.  The increase in other long-term liabilities from December 31, 2011 to June 30, 2012 was primarily the result of those assumed in the Hertalan acquisition.  See Note 4.

 

Segment Information (Tables)
Summary of sales, EBIT, and assets of continuing operations by reportable segment

 

 

Three Months Ended June 30,

 

2012

 

2011

 

In millions

 

Sales(1)

 

EBIT

 

Sales(1)

 

EBIT

 

Carlisle Construction Materials

 

$

470.0

 

$

85.5

 

$

412.0

 

$

54.2

 

Carlisle Transportation Products(3)

 

$

203.3

 

$

18.4

 

$

195.7

 

$

5.3

 

Carlisle Brake & Friction(3)

 

$

133.3

 

$

24.8

 

$

128.0

 

$

20.8

 

Carlisle Interconnect Technologies

 

$

114.7

 

$

17.4

 

$

71.7

 

$

11.7

 

Carlisle FoodService Products

 

$

63.3

 

$

5.7

 

$

63.4

 

$

5.3

 

Corporate

 

$

—

 

$

(11.5

)

$

—

 

$

(11.9

)

Total

 

$

984.6

 

$

140.3

 

$

870.8

 

$

85.4

 

 

 

Six Months Ended June 30,

 

2012

 

2011

 

In millions

 

Sales(1)

 

EBIT

 

Assets(2)

 

Sales(1)

 

EBIT

 

Assets(2)

 

Carlisle Construction Materials

 

$

823.9

 

$

127.5

 

$

944.7

 

$

663.3

 

$

72.2

 

$

728.7

 

Carlisle Transportation Products(3)

 

$

434.8

 

$

38.1

 

$

560.8

 

$

396.5

 

$

18.8

 

$

559.5

 

Carlisle Brake & Friction(3)

 

$

267.2

 

$

50.0

 

$

700.4

 

$

247.1

 

$

40.6

 

$

706.7

 

Carlisle Interconnect Technologies

 

$

225.4

 

$

34.1

 

$

794.7

 

$

137.4

 

$

20.6

 

$

416.6

 

Carlisle FoodService Products

 

$

122.6

 

$

11.2

 

$

210.8

 

$

120.1

 

$

10.8

 

$

211.7

 

Corporate

 

$

—

 

$

(24.4

)

$

85.2

 

$

—

 

$

(22.4

)

$

78.7

 

Total

 

$

1,873.9

 

$

236.5

 

$

3,296.6

 

$

1,564.4

 

$

140.6

 

$

2,701.9

 

 

 

(1) Excludes intersegment sales

(2) Corporate assets include assets of ceased operations not classified as held for sale

(3) CTP and CBF results and assets reflect January 1, 2012 resegmentation of Styled Wheels business from CTP to CBF.

Acquisitions (Tables)
Summary of consideration transferred and the preliminary allocation of the consideration to acquired assets and assumed liabilities 

 

 

Preliminary
Allocation

 

Measurement
Period
Adjustments

 

Revised
Preliminary
Allocation

 

(in millions)

 

As of
3/31/2012

 

Three Months
Ended
6/30/2012

 

As of
6/30/2012

 

 

 

 

 

 

 

 

 

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

 

Summary of consideration transferred and the preliminary allocation of the consideration to acquired assets and assumed liabilities 

 

 

Preliminary
Allocation

 

Measurement
Period
Adjustments

 

Revised
Preliminary
Allocation

 

(in millions)

 

As of
12/31/2011

 

Six Months
Ended 6/30/2012

 

As of
6/30/2012

 

 

 

 

 

 

 

 

 

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

)

1.5

 

(57.4

)

Other long-term liabilities

 

(0.4

)

—

 

(0.4

)

 

 

 

 

 

 

 

 

Total identifiable net assets

 

132.2

 

0.3

 

132.5

 

 

 

 

 

 

 

 

 

Goodwill

 

$

156.7

 

$

0.1

 

$

156.8

 

Summary of consideration transferred and the preliminary allocation of the consideration to acquired assets and assumed liabilities 

 

 

Preliminary
Allocation

 

Measurement
Period Adjustments

 

Revised
Preliminary
Allocation

 

(in millions)

 

As of
12/31/2011

 

Six Months Ended
6/30/2012

 

As of
6/30/2012

 

Consideration transferred:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash consideration

 

$

113.4

 

$

—

 

$

113.4

 

Contingent consideration

 

5.2

 

—

 

5.2

 

 

 

 

 

 

 

 

 

Total fair value of 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)
Summary of exit and disposal activities related to continuing operations 

 

 

 

 

Three Months Ended June 30,

 

Six Month Ended June 30,

 

In millions

 

2012

 

2011

 

2012

 

2011

 

Cost of goods sold

 

$

1.8

 

$

0.6

 

$

1.9

 

$

3.0

 

Selling and administrative expenses

 

(0.2

)

—

 

(0.2

)

—

 

Other expense, net

 

—

 

—

 

0.3

 

—

 

Total exit and disposal costs

 

$

1.6

 

$

0.6

 

$

2.0

 

$

3.0

 

 

Summary of exit and disposal activities by type 

 

 

 

 

Three Months Ended June 30,

 

Six Month Ended June 30,

 

In millions

 

2012

 

2011

 

2012

 

2011

 

Termination benefits

 

$

1.7

 

$

(0.3

)

$

1.7

 

$

0.4

 

Asset writedowns

 

—

 

—

 

0.3

 

—

 

Other associated costs

 

(0.1

)

0.9

 

—

 

2.6

 

Total exit and disposal costs

 

$

1.6

 

$

0.6

 

$

2.0

 

$

3.0

 

 

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

 

 

 

 

2012

 

2011

 

Expected dividend yield

 

1.5

%

1.7

%

Expected life in years

 

5.78

 

5.76

 

Expected volatility

 

36.0

%

32.0

%

Risk-free interest rate

 

0.9

%

2.2

%

Weighted average fair value

 

$

14.57

 

$

10.61

 

 

Earnings Per Share (Tables)
Component of income from continuing operations and share data used in basic and diluted earnings per share 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

In millions, except share and per share amounts

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

89.4

 

$

55.3

 

$

149.4

 

$

88.6

 

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

 

(11.3

)

(10.6

)

(22.5

)

(21.1

)

Undistributed earnings

 

78.1

 

44.7

 

126.9

 

67.5

 

Percent allocated to common shareholders (1)

 

99.4

%

99.0

%

99.4

%

99.0

%

 

 

77.6

 

44.3

 

126.2

 

66.8

 

Add: dividends declared - common stock

 

11.2

 

10.5

 

22.4

 

20.9

 

Numerator for basic and diluted EPS

 

$

88.8

 

$

54.8

 

$

148.6

 

$

87.7

 

 

 

 

 

 

 

 

 

 

 

Denominator (in thousands):

 

 

 

 

 

 

 

 

 

Denominator for basic EPS: weighted-average common shares outstanding

 

62,419

 

61,449

 

62,166

 

61,293

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

Performance awards

 

505

 

309

 

505

 

309

 

Stock options

 

873

 

943

 

812

 

823

 

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

 

63,797

 

62,701

 

63,483

 

62,425

 

 

 

 

 

 

 

 

 

 

 

Per share income from continuing operations:

 

 

 

 

 

 

 

 

 

Basic

 

$

1.42

 

$

0.89

 

$

2.39

 

$

1.43

 

Diluted

 

$

1.39

 

$

0.87

 

$

2.34

 

$

1.40

 

 

 

(1) Basic weighted-average common shares outstanding

 

62,419

 

61,449

 

62,166

 

61,293

 

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

 

62,783

 

62,050

 

62,529

 

61,892

 

Percent allocated to common shareholders

 

99.4

%

99.0

%

99.4

%

99.0

%

 

Component of income from discontinued operations and share data used in basic and diluted earnings per share 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

In millions, except share amounts

 

2012

 

2011

 

2012

 

2011

 

 

 

 

 

 

 

 

 

 

 

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

 

$

3.4

 

$

(0.7

)

$

3.4

 

$

(0.6

)

 

 

 

 

 

 

 

 

 

 

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

 

$

92.2

 

$

54.1

 

$

151.9

 

$

87.2

 

 

 

 

 

 

 

 

 

 

 

Antidilutive stock options excluded from EPS calculation (2)

 

—

 

200

 

—

 

200

 

 

 

(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

 

 

 

June 30,

 

Assets

 

Inputs

 

Inputs

 

In millions

 

2012

 

Level 1

 

Level 2

 

Level 3

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

76.8

 

$

76.8

 

$

—

 

$

—

 

Short-term investments

 

1.6

 

1.6

 

—

 

—

 

Total assets measured at fair value

 

$

78.4

 

$

78.4

 

$

—

 

$

—

 

 

 

 

 

 

 

 

 

 

 

Commodity swap agreements

 

$

0.1

 

$

—

 

$

0.1

 

$

—

 

Contingent consideration

 

$

4.9

 

$

—

 

$

—

 

$

4.9

 

Total liabilities measured at fair value

 

$

5.0

 

$

—

 

$

0.1

 

$

4.9

 

 

 

 

 

 

 

Quoted Prices

 

 

 

 

 

 

 

 

 

In Active

 

Significant

 

 

 

 

 

 

 

Markets for

 

Other

 

Significant

 

 

 

Balance at

 

Identical

 

Observable

 

Unobservable

 

 

 

December 31,

 

Assets

 

Inputs

 

Inputs

 

In millions

 

2011

 

Level 1

 

Level 2

 

Level 3

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

74.7

 

$

74.7

 

$

—

 

$

—

 

Short-term investments

 

0.6

 

0.6

 

—

 

—

 

Total assets measured at fair value

 

$

75.3

 

$

75.3

 

$

—

 

$

—

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration

 

$

5.2

 

$

—

 

$

—

 

$

5.2

 

Total liabilities measured at fair value

 

$

5.2

 

$

—

 

$

—

 

$

5.2

 

Inventories (Tables)
Components of inventories

 

 

 

 

June 30,

 

December 31,

 

In millions

 

2012

 

2011

 

Finished goods

 

$

320.9

 

$

308.7

 

Work-in-process

 

72.1

 

56.7

 

Raw materials

 

188.2

 

179.8

 

Capitalized variances

 

6.6

 

30.2

 

Reserves

 

(38.2

)

(33.8

)

 

 

549.6

 

541.6

 

Inventories associated with assets held for sale

 

—

 

(2.6

)

Inventories

 

$

549.6

 

$

539.0

 

 

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

 

 

 

 

June 30,

 

December 31,

 

In millions

 

2012

 

2011

 

Land

 

$

38.7

 

$

36.5

 

Buildings and leasehold improvements

 

286.0

 

276.3

 

Machinery and equipment

 

807.0

 

790.1

 

Projects in progress

 

73.5

 

38.6

 

 

 

1,205.2

 

1,141.5

 

Accumulated depreciation

 

(612.8

)

(577.4

)

Property, plant and equipment, net, associated with assets held for sale

 

—

 

(3.8

)

Property, plant and equipment, net

 

$

592.4

 

$

560.3

 

 

Goodwill and Other Intangible Assets (Tables)
Summary of changes in the carrying amount of goodwill 

 

 

 

 

Construction

 

Transportation

 

Brake and

 

Interconnect

 

FoodService

 

Disc.

 

 

 

In millions

 

Materials

 

Products

 

Friction

 

Technologies

 

Products

 

Ops

 

Total

 

Gross balance at January 1, 2012

 

112.6

 

155.5

 

226.7

 

345.6

 

60.3

 

47.4

 

948.1

 

Goodwill acquired during the six month period

 

20.6

 

—

 

—

 

—

 

—

 

—

 

20.6

 

Measurement period adjustments

 

(6.5

)

—

 

—

 

0.1

 

—

 

—

 

(6.4

)

Resegmentation of Styled Wheels business

 

—

 

(8.0

)

8.0

 

—

 

—

 

—

 

—

 

Currency translation

 

(1.3

)

—

 

0.1

 

—

 

—

 

—

 

(1.2

)

Gross balance at June 30, 2012

 

125.4

 

147.5

 

234.8

 

345.7

 

60.3

 

47.4

 

961.1

 

Accumulated impairment losses

 

—

 

(55.5

)

—

 

—

 

—

 

(47.4

)

(102.9

)

Net balance at June 30, 2012

 

$

125.4

 

$

92.0

 

$

234.8

 

$

345.7

 

$

60.3

 

$

—

 

$

858.2

 

 

Summary of other intangible assets 

 

 

 

 

Acquired

 

Accumulated

 

Net Book

 

In millions

 

Cost

 

Amortization

 

Value

 

Assets subject to amortization:

 

 

 

 

 

 

 

Patents

 

$

88.7

 

$

(15.6

)

$

73.1

 

Customer Relationships

 

373.8

 

(58.5

)

315.3

 

Other

 

16.9

 

(8.1

)

8.8

 

Assets not subject to amortization:

 

 

 

 

 

 

 

Trade names

 

88.4

 

—

 

88.4

 

Other intangible assets, net

 

$

567.8

 

$

(82.2

)

$

485.6

 

 

 

 

 

Acquired

 

Accumulated

 

Net Book

 

In millions

 

Cost

 

Amortization

 

Value

 

Assets subject to amortization:

 

 

 

 

 

 

 

Patents

 

$

139.1

 

$

(12.2

)

$

126.9

 

Customer Relationships

 

275.7

 

(47.8

)

227.9

 

Other

 

20.4

 

(7.4

)

13.0

 

Assets not subject to amortization:

 

 

 

 

 

 

 

Trade names

 

111.4

 

—

 

111.4

 

Other intangible assets, net

 

$

546.6

 

$

(67.4

)

$

479.2

 

 

Summary of net book value of other intangible assets by reportable segment 

 

 

 

 

June 30,

 

December 31,

 

In millions

 

2012

 

2011

 

 

 

 

 

 

 

Carlisle Construction Materials

 

$

89.8

 

$

71.8

 

Carlisle Transportation Products

 

—

 

2.7

 

Carlisle Brake & Friction

 

143.0

 

144.0

 

Carlisle Interconnect Technologies

 

216.4

 

222.8

 

Carlisle FoodService Products

 

36.4

 

37.9

 

Total

 

$

485.6

 

$

479.2

 

 

Borrowings (Tables)
Schedule of the Company's borrowings

 

 

 

 

June 30,

 

December 31,

 

In millions

 

2012

 

2011

 

5.125% notes due 2020, net of unamortized discount of ($1.0) and ($1.0) respectively

 

$

249.0

 

$

249.0

 

6.125% notes due 2016, net of unamortized discount of ($0.5) and ($0.5) respectively

 

149.5

 

149.5

 

Revolving credit facility

 

295.0

 

348.0

 

Industrial development and revenue bonds through 2018

 

5.5

 

5.5

 

Other, including capital lease obligations

 

0.5

 

10.4

 

Total long-term debt

 

699.5

 

762.4

 

Less current portion

 

(195.0

)

(158.1

)

Total long-term debt, net of current portion

 

$

504.5

 

$

604.3

 

 

Retirement Plans (Tables)
Components of net periodic benefit cost

 

 

 

 

Pension Benefits

 

Post-Retirement Benefits

 

 

 

Three Months Ended

 

Six Months Ended

 

Three Months Ended

 

Six Months Ended

 

 

 

June 30,

 

June 30,

 

June 30,

 

June 30,

 

In millions

 

2012

 

2011

 

2012

 

2011

 

2012

 

2011

 

2012

 

2011

 

Service cost

 

$

1.2

 

$

1.3

 

$

2.3

 

$

2.6

 

$

—

 

$

—

 

$

—

 

$

—

 

Interest cost

 

2.5

 

2.7

 

5.0

 

5.3

 

0.1

 

0.1

 

0.2

 

0.2

 

Expected return on plan assets

 

(3.5

)

(3.7

)

(7.1

)

(7.3

)

—

 

—

 

—

 

—

 

Amortization of unrecognized net loss

 

1.3

 

1.1

 

2.6

 

2.3

 

—

 

 

 

—

 

 

 

Net periodic benefit costs

 

$

1.5

 

$

1.4

 

$

2.8

 

$

2.9

 

$

0.1

 

$

0.1

 

$

0.2

 

$

0.2

 

Product Warranties (Tables)
Summary of change in product warranty liabilities 

 

 

In millions

 

2012

 

December 31, 2011 reserve

 

$

19.9

 

Current year provision

 

7.0

 

Current year claims

 

(6.2

)

June 30, 2012 reserve

 

$

20.7

 

Schedule of product warranty deferred revenue liability 

 

 

 

 

June 30,

 

December 31,

 

In millions

 

2012

 

2011

 

Deferred revenue

 

 

 

 

 

Current

 

$

16.2

 

$

15.9

 

Long-term

 

132.7

 

128.6

 

Deferred revenue

 

$

148.9

 

$

144.5

 

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

 

 

 

 

June 30,

 

December 31,

 

In millions

 

2012

 

2011

 

Deferred taxes and other tax liabilities

 

$

258.9

 

$

253.8

 

Pension and other post-retirement obligations

 

17.8

 

19.1

 

Deferred credits

 

8.8

 

9.1

 

Deferred compensation

 

6.6

 

5.5

 

Other

 

2.4

 

2.8

 

Other long-term liabilities

 

$

294.5

 

$

290.3

 

Segment Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Sales, EBIT, assets of operations by reportable segment
 
 
 
 
Sales
$ 984.60 
$ 870.80 
$ 1,873.90 
$ 1,564.40 
EBIT
140.30 
85.40 
236.50 
140.60 
Assets
3,296.6 
2,701.9 
3,296.6 
2,701.9 
Carlisle Construction Materials
 
 
 
 
Sales, EBIT, assets of operations by reportable segment
 
 
 
 
Sales
470.00 
412.00 
823.90 
663.30 
EBIT
85.50 
54.20 
127.50 
72.20 
Assets
944.7 
728.7 
944.7 
728.7 
Carlisle Transportation Products
 
 
 
 
Sales, EBIT, assets of operations by reportable segment
 
 
 
 
Sales
203.30 
195.70 
434.80 
396.50 
EBIT
18.40 
5.30 
38.10 
18.80 
Assets
560.8 
559.5 
560.8 
559.5 
Carlisle Brake & Friction
 
 
 
 
Sales, EBIT, assets of operations by reportable segment
 
 
 
 
Intersegment sales
 
 
13.7 
 
Sales
133.30 
128.00 
267.20 
247.10 
EBIT
24.80 
20.80 
50.00 
40.60 
Assets
700.4 
706.7 
700.4 
706.7 
Carlisle Interconnect Technologies
 
 
 
 
Sales, EBIT, assets of operations by reportable segment
 
 
 
 
Sales
114.70 
71.70 
225.40 
137.40 
EBIT
17.40 
11.70 
34.10 
20.60 
Assets
794.7 
416.6 
794.7 
416.6 
Carlisle Food Service Products
 
 
 
 
Sales, EBIT, assets of operations by reportable segment
 
 
 
 
Sales
63.30 
63.40 
122.60 
120.10 
EBIT
5.70 
5.30 
11.20 
10.80 
Assets
210.8 
211.7 
210.8 
211.7 
Corporate
 
 
 
 
Sales, EBIT, assets of operations by reportable segment
 
 
 
 
EBIT
(11.50)
(11.90)
(24.40)
(22.40)
Assets
$ 85.2 
$ 78.7 
$ 85.2 
$ 78.7 
Acquisitions (Details)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 1 Months Ended 1 Months Ended 1 Months Ended
Jun. 30, 2012
USD ($)
Jun. 30, 2011
USD ($)
Jun. 30, 2012
USD ($)
Jun. 30, 2011
USD ($)
Jun. 30, 2012
EUR (€)
Jun. 30, 2012
Hertalan Holding B.V.
USD ($)
Mar. 31, 2012
Hertalan Holding B.V.
USD ($)
Mar. 31, 2012
Hertalan Holding B.V.
EUR (€)
Mar. 9, 2012
Hertalan Holding B.V.
USD ($)
Jun. 30, 2012
Hertalan Holding B.V.
Maximum
USD ($)
Dec. 31, 2011
Tri-Star Electronics International, Inc.
USD ($)
Dec. 2, 2011
Tri-Star Electronics International, Inc.
Aug. 31, 2011
PDT Phoenix GmbH
USD ($)
Aug. 31, 2011
PDT Phoenix GmbH
EUR (€)
Aug. 1, 2011
PDT Phoenix GmbH
USD ($)
Aug. 1, 2011
PDT Phoenix GmbH
EUR (€)
Business acquisition
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of ownership interest acquired
 
 
 
 
 
 
 
 
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 
2.7 
 
 
48.9 
37.3 
 
 
284.8 
 
111.0 
77.0 
 
 
Cash acquired in business combination
 
 
 
 
 
 
0.1 
0.1 
 
 
4.5 
 
7.6 
5.3 
 
 
Maximum borrowing capacity
 
 
 
 
 
 
 
 
600.0 
 
 
 
 
 
 
 
Contingent consideration
 
 
 
 
(3.9)
 
 
 
 
 
 
 
 
 
5.2 
3.6 
Revenues
 
 
 
 
 
12.6 
 
 
 
 
 
 
 
 
 
 
Earnings before interest and taxes ("EBIT") loss
140.30 
85.40 
236.50 
140.60 
 
 
 
 
 
0.10 
 
 
 
 
 
 
Cost of goods sold adjustment to record inventory at fair value
 
 
 
 
 
$ 1.2 
 
 
 
 
 
 
 
 
 
 
Acquisitions (Details 2)
In Millions, unless otherwise specified
6 Months Ended 1 Months Ended 6 Months Ended 1 Months Ended 1 Months Ended 1 Months Ended 1 Months Ended 1 Months Ended
Jun. 30, 2012
EUR (€)
Dec. 31, 2011
USD ($)
Jun. 30, 2012
Hertalan Holding B.V.
Customer relationships
year
Mar. 31, 2012
Hertalan Holding B.V.
Preliminary Allocation
USD ($)
Jun. 30, 2012
Hertalan Holding B.V.
Measurement Period Adjustments
USD ($)
Jun. 30, 2012
Hertalan Holding B.V.
Revised Preliminary Allocation
USD ($)
Dec. 2, 2011
Tri-Star Electronics International, Inc.
Customer relationships
USD ($)
Dec. 31, 2012
Tri-Star Electronics International, Inc.
Customer relationships
Minimum
year
Dec. 31, 2012
Tri-Star Electronics International, Inc.
Customer relationships
Maximum
year
Jun. 30, 2012
Tri-Star Electronics International, Inc.
Customer certifications and approvals
year
Dec. 2, 2011
Tri-Star Electronics International, Inc.
Customer certifications and approvals
USD ($)
Dec. 31, 2012
Tri-Star Electronics International, Inc.
Acquired Technology
year
Dec. 2, 2012
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
year
Dec. 31, 2012
Tri-Star Electronics International, Inc.
Non-compete agreement
Maximum
year
Dec. 31, 2011
Tri-Star Electronics International, Inc.
Preliminary Allocation
USD ($)
Jun. 30, 2012
Tri-Star Electronics International, Inc.
Measurement Period Adjustments
USD ($)
Jun. 30, 2012
Tri-Star Electronics International, Inc.
Revised Preliminary Allocation
USD ($)
Aug. 31, 2011
PDT Phoenix GmbH
USD ($)
Aug. 31, 2011
PDT Phoenix GmbH
EUR (€)
Jan. 2, 2012
PDT Phoenix GmbH
USD ($)
Jan. 2, 2012
PDT Phoenix GmbH
EUR (€)
Aug. 1, 2011
PDT Phoenix GmbH
USD ($)
Aug. 1, 2011
PDT Phoenix GmbH
EUR (€)
Aug. 31, 2011
PDT Phoenix GmbH
Customer relationships
year
Aug. 1, 2011
PDT Phoenix GmbH
Customer relationships
USD ($)
Aug. 1, 2011
PDT Phoenix GmbH
Patents
USD ($)
Aug. 31, 2011
PDT Phoenix GmbH
Patents
Minimum
year
Aug. 31, 2011
PDT Phoenix GmbH
Patents
Maximum
year
Dec. 31, 2011
PDT Phoenix GmbH
Preliminary Allocation
USD ($)
Jun. 30, 2012
PDT Phoenix GmbH
Measurement Period Adjustments
USD ($)
Jun. 30, 2012
PDT Phoenix GmbH
Revised Preliminary Allocation
USD ($)
Cash consideration transferred:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total cash consideration transferred
 
 
 
$ 49.3 
$ (0.3)
$ 49.0 
 
 
 
 
 
 
 
 
 
 
$ 288.9 
$ 0.4 
$ 289.3 
 
 
 
 
$ 113.4 
€ 78.7 
 
 
 
 
 
$ 113.4 
 
$ 113.4 
Contingent consideration
(3.9)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5.2 
3.6 
 
 
 
 
 
5.2 
 
5.2 
Purchase price initially funded with borrowings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
113.4 
78.7 
 
 
 
 
 
 
 
 
 
 
 
 
Sale of Certain assets of the acquired entity
 
22.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 and cash equivalents
 
 
 
0.1 
 
0.1 
 
 
 
 
 
 
 
 
 
 
4.5 
 
4.5 
 
 
 
 
 
 
 
 
 
 
 
7.6 
 
7.6 
Receivables
 
 
 
3.7 
 
3.7 
 
 
 
 
 
 
 
 
 
 
14.0 
 
14.0 
 
 
 
 
 
 
 
 
 
 
 
12.2 
 
12.2 
Inventories
 
 
 
10.5 
(1.0)
9.5 
 
 
 
 
 
 
 
 
 
 
22.8 
 
22.8 
 
 
 
 
 
 
 
 
 
 
 
10.5 
 
10.5 
Prepaid expenses and other current assets
 
 
 
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
 
 
 
13.0 
(0.1)
12.9 
 
 
 
 
 
 
 
 
 
 
15.4 
(2.1)
13.3 
 
 
 
 
 
 
 
 
 
 
 
3.4 
 
3.4 
Definite-lived intangible assets
 
 
 
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
 
 
 
2.6 
5.4 
8.0 
 
 
 
 
 
 
 
 
 
 
28.0 
(8.6)
19.4 
 
 
 
 
 
 
 
 
 
 
 
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
 
 
 
(3.3)
 
(3.3)
 
 
 
 
 
 
 
 
 
 
(6.5)
 
(6.5)
 
 
 
 
 
 
 
 
 
 
 
(9.0)
 
(9.0)
Accrued expenses
 
 
 
(2.5)
 
(2.5)
 
 
 
 
 
 
 
 
 
 
(4.4)
 
(4.4)
 
 
 
 
 
 
 
 
 
 
 
(1.2)
 
(1.2)
Long-term debt
 
 
 
(1.3)
 
(1.3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred tax liabilities
 
 
 
(4.4)
(2.3)
(6.7)
 
 
 
 
 
 
 
 
 
 
(58.9)
1.5 
(57.4)
 
 
 
 
 
 
 
 
 
 
 
(21.5)
 
(21.5)
Other long-term liabilities
 
 
 
(0.1)
 
(0.1)
 
 
 
 
 
 
 
 
 
 
(0.4)
 
(0.4)
 
 
 
 
 
 
 
 
 
 
 
(3.3)
 
(3.3)
Total identifiable net assets
 
 
 
28.7 
6.8 
35.5 
 
 
 
 
 
 
 
 
 
 
132.2 
0.3 
132.5 
 
 
 
 
 
 
 
 
 
 
 
88.8 
(0.6)
88.2 
Goodwill
 
 
 
$ 20.6 
$ (7.1)
$ 13.5 
 
 
 
 
 
 
 
 
 
 
$ 156.7 
$ 0.1 
$ 156.8 
 
 
 
 
 
 
 
 
 
 
 
$ 29.8 
$ 0.6 
$ 30.4 
Useful life of finite lived intangible assets (in years)
 
 
9 
 
 
 
 
12 
21 
3 
 
16 
 
 
3 
5 
 
 
 
 
 
 
 
 
 
19 
 
 
10 
20 
 
 
 
Discontinued Operations and Assets Held for Sale (Details)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 1 Months Ended 1 Months Ended
Jun. 30, 2012
USD ($)
Jun. 30, 2011
USD ($)
Jun. 30, 2012
USD ($)
Jun. 30, 2011
USD ($)
Dec. 31, 2011
USD ($)
Jan. 31, 2012
PDT profiles business
USD ($)
Jan. 31, 2012
PDT profiles business
EUR (€)
Dec. 31, 2011
PDT profiles business
USD ($)
Apr. 30, 2012
Specialty trailer business
USD ($)
Sale from discontinued operations
 
 
 
 
 
 
 
 
 
Cash proceeds from sale of business
 
 
$ 25.8 
$ 5.3 
 
$ 22.1 
€ 17.1 
 
 
Assets held for sale:
 
 
 
 
 
 
 
 
 
Total assets held for sale
 
 
 
 
22.7 
 
 
22.7 
 
Income (loss) from discontinued operations:
 
 
 
 
 
 
 
 
 
Income (loss) before income taxes from discontinued operations
$ 3.60 
$ (1.30)
$ 3.60 
$ (1.20)
 
 
 
 
$ 3.75 
Exit and Disposal Activities (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Exit and disposal activities
 
 
 
 
Total exit and disposal costs
$ 1.6 
$ 0.6 
$ 0.2 
$ 0.3 
Cost of goods sold
 
 
 
 
Exit and disposal activities
 
 
 
 
Total exit and disposal costs
1.8 
0.6 
1.9 
3.0 
Selling and administrative expenses
 
 
 
 
Exit and disposal activities
 
 
 
 
Total exit and disposal costs
(0.2)
 
(0.2)
 
Other expense, net
 
 
 
 
Exit and disposal activities
 
 
 
 
Total exit and disposal costs
 
 
$ 0.3 
 
Exit and Disposal Activities (Details 2) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Exit and disposal activities
 
 
 
 
 
Total exit and disposal costs
$ 1.6 
$ 0.6 
$ 0.2 
$ 0.3 
 
Exit and disposal costs accrued
 
 
 
 
 
Accrued exit and disposal costs
2.3 
 
2.3 
 
1.2 
Termination Benefits
 
 
 
 
 
Exit and disposal activities
 
 
 
 
 
Total exit and disposal costs
1.7 
(0.3)
1.7 
0.4 
 
Asset writedowns
 
 
 
 
 
Exit and disposal activities
 
 
 
 
 
Total exit and disposal costs
 
 
0.3 
 
 
Other associated costs
 
 
 
 
 
Exit and disposal activities
 
 
 
 
 
Total exit and disposal costs
$ (0.1)
$ 0.9 
 
$ 2.6 
 
Exit and Disposal Activities (Details 3) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 36 Months Ended 3 Months Ended 6 Months Ended 33 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Fixed assets impairment
Jun. 30, 2012
Carlisle Construction Materials
Jun. 30, 2012
Carlisle Construction Materials
Employee termination costs
Jun. 30, 2012
Carlisle Transportation Products
Jun. 30, 2011
Carlisle Transportation Products
Jun. 30, 2012
Carlisle Transportation Products
Jun. 30, 2012
Carlisle Transportation Products
Manufacturing operations relocation cost
Sep. 30, 2011
Carlisle Brake & Friction
Jun. 30, 2012
Carlisle Brake & Friction
Jun. 30, 2011
Carlisle Brake & Friction
Jun. 30, 2012
Carlisle Brake & Friction
Jun. 30, 2012
Carlisle Brake & Friction
Fixed assets impairment
Exit and disposal activities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total exit and disposal costs
$ 1.6 
$ 0.6 
$ 0.2 
$ 0.3 
$ 0.3 
 
$ 0.3 
$ 0.1 
$ 2.6 
 
$ 1.5 
 
$ 0.1 
$ 0.4 
 
$ 0.3 
Restructuring and related cost incurred through date
 
 
 
 
 
 
 
 
 
20.9 
 
 
 
 
5.3 
 
Restructuring and related cost expected to be incurred
 
 
 
 
 
1.2 
 
 
 
 
1.9 
1.1 
 
 
 
 
Restructuring reserve included in accrued expenses
 
 
 
 
 
0.3 
 
0.3 
 
0.3 
 
 
0.3 
 
0.3 
 
Income from reversal of accrued pension costs
 
 
 
 
 
 
 
 
 
 
 
 
$ 0.2 
 
 
 
Stock-Based Compensation (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Mar. 31, 2012
Jun. 30, 2011
Jun. 30, 2012
year
Jun. 30, 2011
year
Stock-based compensation
 
 
 
 
 
Pre-tax compensation expense
$ 4.2 
 
$ 3.5 
$ 9.9 
$ 7.3 
2008 Executive Incentive Program
 
 
 
 
 
Stock-based compensation
 
 
 
 
 
Shares available for grant under the plan
3,487,356 
 
 
3,487,356 
 
2005 Nonemployee Director Equity Plan
 
 
 
 
 
Stock-based compensation
 
 
 
 
 
Shares available for grant under the plan
279,584 
 
 
279,584 
 
Stock options
 
 
 
 
 
Stock-based compensation
 
 
 
 
 
Pre-tax compensation expense
1.6 
 
1.9 
3.5 
2.8 
Stock options granted (in shares)
 
481,215 
 
 
 
Maximum term life (in years)
 
 
 
10 Years 
 
Weighted-average assumptions used to estimate grant date fair value of stock options
 
 
 
 
 
Expected dividend yield (as a percent)
 
 
 
1.50% 
1.70% 
Expected life in years
 
 
 
5.78 
5.76 
Expected volatility (as a percent)
 
 
 
36.00% 
32.00% 
Risk-free interest rate (as a percent)
 
 
 
0.90% 
2.20% 
Weighted average fair value (in dollars per share)
 
 
 
$ 14.57 
$ 10.61 
Stock options |
2005 Nonemployee Director Equity Plan |
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)
 
83,745 
 
 
 
Performance share awards
 
 
 
 
 
Stock-based compensation
 
 
 
 
 
Awards granted (in shares)
 
83,745 
 
 
 
Aggregate grant date fair value of stock options, restricted stock awards and performance share awards
 
 
 
$ 17.6 
 
Restricted and Performance Share Award |
2008 Executive Incentive Program
 
 
 
 
 
Stock-based compensation
 
 
 
 
 
Shares available for grant under the plan
872,725 
 
 
872,725 
 
Restricted and Performance Share Award |
2005 Nonemployee Director Equity Plan
 
 
 
 
 
Stock-based compensation
 
 
 
 
 
Shares available for grant under the plan
49,584 
 
 
49,584 
 
Stock-Based Compensation (Details 2) (USD $)
3 Months Ended 6 Months Ended 1 Months Ended 6 Months Ended
Mar. 31, 2012
Restricted stock awards
Jun. 30, 2012
Restricted stock awards
Feb. 29, 2008
Restricted stock awards
Executive Management
Jun. 30, 2012
Performance share awards
Stock-based compensation
 
 
 
 
Vesting period (in years) of shares awarded in 2008
 
3 years 
5 years 
3 years 
Award Activity
 
 
 
 
Shares granted
11,298 
 
56,700 
 
Performance share awards
 
 
 
 
Shares granted (in dollars per share)
 
 
 
$ 69.76 
Weighted average grant date fair value (in dollars per share)
 
$ 49.56 
 
 
Income Taxes (Details)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Reconciliation of taxes from continuing operations
 
 
Effective income tax rate on continuing operations (as a percent)
33.20% 
32.20% 
Reconciliation of effective income tax rate with United States statutory rate (as a percent)
35.00% 
 
Earnings Per Share (Details) (USD $)
Share data in Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Numerator:
 
 
 
 
Income from continuing operations
$ 89,400,000 
$ 55,300,000 
$ 149,400,000 
$ 88,600,000 
Less: dividends declared - common stock outstanding, unvested restricted shares and restricted share units
(11,300,000)
(10,600,000)
(22,500,000)
(21,100,000)
Undistributed earnings
78,100,000 
44,700,000 
126,900,000 
67,500,000 
Percent allocated to common shareholders
99.40% 
99.00% 
99.40% 
99.00% 
Undistributed earnings allocated to common shareholders
77,600,000 
44,300,000 
126,200,000 
66,800,000 
Add: dividends declared - common stock
11,200,000 
10,500,000 
22,400,000 
20,900,000 
Numerator for basic and diluted EPS
88,800,000 
54,800,000 
148,600,000 
87,700,000 
Denominator (in thousands):
 
 
 
 
Denominator for basic EPS: weighted-average common shares outstanding
62,419 
61,449 
62,166 
61,293 
Effect of dilutive securities:
 
 
 
 
Performance awards (in shares)
505 
309 
505 
309 
Stock options (in shares)
873 
943 
812 
823 
Denominator for diluted EPS: weighted average common shares outstanding and assumed conversion
63,797 
62,701 
63,483 
62,425 
Per share income from continuing operations:
 
 
 
 
Basic (in dollars per share)
$ 1.42 
$ 0.89 
$ 2.39 
$ 1.43 
Diluted (in dollars per share)
$ 1.39 
$ 0.87 
$ 2.34 
$ 1.40 
Basic weighted-average common shares outstanding
62,419 
61,449 
62,166 
61,293 
Basic weighted-average common shares outstanding, unvested restricted shares expected to vest and restricted share units
62,783 
62,050 
62,529 
61,892 
Percent allocated to common shareholders
99.40% 
99.00% 
99.40% 
99.00% 
Income (loss) from discontinued operations and net income
 
 
 
 
Income from discontinued operations attributable to common shareholders for basic and diluted earnings per share
3,400,000 
(700,000)
3,400,000 
(600,000)
Net income attributable to common shareholders for basic and diluted earnings per share
$ 92,200,000 
$ 54,100,000 
$ 151,900,000 
$ 87,200,000 
Antidilutive stock options excluded from EPS calculation (in shares)
 
200 
 
200 
Fair Value Measurements (Details)
In Millions, unless otherwise specified
Jun. 30, 2012
USD ($)
Jun. 30, 2012
EUR (€)
Dec. 31, 2011
USD ($)
Jun. 30, 2012
Recurring Fair Value Measurements
Total
USD ($)
Dec. 31, 2011
Recurring Fair Value Measurements
Total
USD ($)
Jun. 30, 2012
Recurring Fair Value Measurements
Quoted Prices in Active Markets for Identical Assets (Level 1)
USD ($)
Dec. 31, 2011
Recurring Fair Value Measurements
Quoted Prices in Active Markets for Identical Assets (Level 1)
USD ($)
Jun. 30, 2012
Recurring Fair Value Measurements
Significant Unobservable Inputs (Level 3)
USD ($)
Dec. 31, 2011
Recurring Fair Value Measurements
Significant Unobservable Inputs (Level 3)
USD ($)
Jun. 30, 2012
Recurring Fair Value Measurements
Significant Observable Inputs (Level 2)
USD ($)
Fair value measurements
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
$ 76.8 
$ 74.7 
$ 76.8 
$ 74.7 
 
 
 
Short-term investments
 
 
 
1.6 
0.6 
1.6 
0.6 
 
 
 
Total assets measured at fair value
 
 
 
78.4 
75.3 
78.4 
75.3 
 
 
 
Commodity swap agreements
 
 
 
0.1 
 
 
 
 
 
0.1 
Contingent consideration
 
 
 
4.9 
5.2 
 
 
4.9 
5.2 
 
Total liabilities measured at fair value
 
 
 
5.0 
5.2 
 
 
4.9 
5.2 
0.1 
Fair value of contingent consideration
 
3.9 
 
 
 
 
 
 
 
 
Short-term investments held in mutual funds and as cash for the Company's deferred compensation program
$ 1.6 
 
$ 0.6 
 
 
 
 
 
 
 
Inventories (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Inventories
 
 
Finished goods
$ 320.9 
$ 308.7 
Work-in-process
72.1 
56.7 
Raw materials
188.2 
179.8 
Capitalized variances
6.6 
30.2 
Reserves
(38.2)
(33.8)
Total
549.6 
541.6 
Inventories associated with assets held for sale
 
(2.6)
Inventories
$ 549.6 
$ 539.0 
Property, Plant and Equipment (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Property, Plant and Equipment
 
 
Property, plant and equipment, gross
$ 1,205.2 
$ 1,141.5 
Accumulated depreciation
(612.8)
(577.4)
Property, plant and equipment, net, associated with assets held for sale
 
(3.8)
Property, plant and equipment, net
592.4 
560.3 
Land
 
 
Property, Plant and Equipment
 
 
Property, plant and equipment, gross
38.7 
36.5 
Buildings and leasehold improvements
 
 
Property, Plant and Equipment
 
 
Property, plant and equipment, gross
286.0 
276.3 
Machinery and equipment
 
 
Property, Plant and Equipment
 
 
Property, plant and equipment, gross
807.0 
790.1 
Projects in progress
 
 
Property, Plant and Equipment
 
 
Property, plant and equipment, gross
$ 73.5 
$ 38.6 
Goodwill and Other Intangible Assets (Details)
In Millions, unless otherwise specified
6 Months Ended 1 Months Ended 6 Months Ended 1 Months Ended 6 Months Ended
Jun. 30, 2012
USD ($)
Jun. 30, 2011
USD ($)
Dec. 31, 2011
USD ($)
Mar. 31, 2012
Hertalan Holding B.V.
USD ($)
Mar. 31, 2012
Hertalan Holding B.V.
EUR (€)
Dec. 31, 2011
Tri-Star
USD ($)
Aug. 31, 2011
PDT Phoenix GmbH
USD ($)
Aug. 31, 2011
PDT Phoenix GmbH
EUR (€)
Jun. 30, 2012
Carlisle Construction Materials
USD ($)
Jun. 30, 2012
Carlisle Construction Materials
Hertalan Holding B.V.
USD ($)
Mar. 31, 2012
Carlisle Construction Materials
Hertalan Holding B.V.
Revised Preliminary Allocation
USD ($)
Jun. 30, 2012
Carlisle Construction Materials
PDT Phoenix GmbH
USD ($)
Jun. 30, 2012
Transportation Products
USD ($)
Jun. 30, 2012
Carlisle Brake & Friction
USD ($)
Jun. 30, 2012
Carlisle Interconnect Technologies
USD ($)
Jun. 30, 2012
Carlisle Interconnect Technologies
Tri-Star
USD ($)
Jun. 30, 2012
Carlisle Food Service Products
USD ($)
Dec. 31, 2011
Carlisle Food Service Products
USD ($)
Jun. 30, 2012
Disc. Ops
USD ($)
Dec. 31, 2011
Disc. Ops
USD ($)
Changes in the carrying amount of goodwill
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill gross, balance at the beginning of the period
$ 948.1 
 
 
 
 
 
 
 
$ 112.6 
 
 
 
$ 155.5 
$ 226.7 
$ 345.6 
 
$ 60.3 
$ 60.3 
$ 47.4 
$ 47.4 
Goodwill acquired during the period
20.6 
 
 
 
 
 
 
 
20.6 
 
13.5 
 
 
 
 
 
 
 
 
 
Measurement period adjustments
(6.4)
 
 
 
 
 
 
 
(6.5)
(7.1)
 
0.6 
 
 
0.1 
0.1 
 
 
 
 
Resegmentation of Styled Wheels business
 
 
 
 
 
 
 
 
 
 
 
 
(8.0)
8.0 
 
 
 
 
 
 
Currency translation adjustments
(1.2)
 
 
 
 
 
 
 
(1.3)
 
 
 
 
0.1 
 
 
 
 
 
 
Goodwill gross, balance at the end of the period
961.1 
 
 
 
 
 
 
 
125.4 
 
 
 
147.5 
234.8 
345.7 
 
60.3 
60.3 
47.4 
47.4 
Accumulated impairment loss, balance at the end of the period
(102.9)
 
 
 
 
 
 
 
 
 
 
 
(55.5)
 
 
 
 
 
(47.4)
 
Goodwill, balance at the end of the period
858.2 
 
845.2 
 
 
 
 
 
125.4 
 
 
 
92.0 
234.8 
345.7 
 
60.3 
 
 
 
Aggregate cash purchase price, net of cash acquired
49.3 
2.7 
 
48.9 
37.3 
284.8 
111.0 
77.0 
 
 
 
 
 
 
 
 
 
 
 
 
Cash acquired in business combination
 
 
 
$ 0.1 
€ 0.1 
$ 4.5 
$ 7.6 
€ 5.3 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill and Other Intangible Assets (Details 2) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Dec. 31, 2011
Other intangible assets, net
 
 
Other intangible assets, Acquired Cost
$ 567.8 
$ 546.6 
Other intangible assets, Accumulated Amortization
(82.2)
(67.4)
Other intangible assets, net
485.6 
479.2 
Estimated amortization expense
 
 
2012
14.7 
 
2013
29.0 
 
2014
28.7 
 
2015
28.3 
 
2016
26.6 
 
Patents
 
 
Assets subject to amortization:
 
 
Acquired Cost
88.7 
139.1 
Accumulated Amortization
(15.6)
(12.2)
Net Book Value
73.1 
126.9 
Customer relationships
 
 
Assets subject to amortization:
 
 
Acquired Cost
373.8 
275.7 
Accumulated Amortization
(58.5)
(47.8)
Net Book Value
315.3 
227.9 
Other
 
 
Assets subject to amortization:
 
 
Acquired Cost
16.9 
20.4 
Accumulated Amortization
(8.1)
(7.4)
Net Book Value
8.8 
13.0 
Trade names
 
 
Assets not subject to amortization:
 
 
Acquired Cost
88.4 
111.4 
Net Book Value
$ 88.4 
$ 111.4 
Goodwill and Other Intangible Assets (Details 3) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Net book value of other intangible assets by the reportable segment
 
 
Other intangible assets, net
$ 485.6 
$ 479.2 
Carlisle Construction Materials
 
 
Net book value of other intangible assets by the reportable segment
 
 
Other intangible assets, net
89.8 
71.8 
Carlisle Transportation Products
 
 
Net book value of other intangible assets by the reportable segment
 
 
Other intangible assets, net
 
2.7 
Carlisle Brake & Friction
 
 
Net book value of other intangible assets by the reportable segment
 
 
Other intangible assets, net
143.0 
144.0 
Carlisle Interconnect Technologies
 
 
Net book value of other intangible assets by the reportable segment
 
 
Other intangible assets, net
216.4 
222.8 
Carlisle Food Service Products
 
 
Net book value of other intangible assets by the reportable segment
 
 
Other intangible assets, net
$ 36.4 
$ 37.9 
Commitments and Contingencies (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Commitments and Contingencies
 
 
 
Rent expense
$ 15.4 
$ 12.7 
 
Future minimum payments
 
 
 
2012
12.8 
 
 
2013
21.9 
 
 
2014
18.6 
 
 
2015
15.5 
 
 
2016
12.7 
 
 
Thereafter
47.6 
 
 
Purchase Obligations
 
 
 
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
$ 22.5 
 
$ 22.9 
Borrowings (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Borrowings
 
 
 
Total long-term debt
$ 699.5 
 
$ 762.4 
Less current portion
(195.0)
 
(158.1)
Total long-term debt, net of current portion
504.5 
 
604.3 
Cash payments for interest
13.5 
11.6 
 
Interest income
0.2 
0.4 
 
5.125% senior notes due 2020
 
 
 
Borrowings
 
 
 
Total long-term debt
249.0 
 
249.0 
Interest rate (as a percent)
5.125% 
 
5.125% 
Unamortized discount
1.0 
 
1.0 
Par value of senior notes
250 
 
 
5.125% senior notes due 2020 |
Significant Observable Inputs (Level 2)
 
 
 
Borrowings
 
 
 
Fair value of notes
282.8 
 
 
6.125% senior notes due 2016
 
 
 
Borrowings
 
 
 
Total long-term debt
149.5 
 
149.5 
Interest rate (as a percent)
6.125% 
 
6.125% 
Unamortized discount
0.5 
 
0.5 
Par value of senior notes
150 
 
 
6.125% senior notes due 2016 |
Significant Observable Inputs (Level 2)
 
 
 
Borrowings
 
 
 
Fair value of notes
168.4 
 
 
Revolving credit facility
 
 
 
Borrowings
 
 
 
Total long-term debt
295.0 
 
348.0 
Less current portion
(195.0)
 
 
Total long-term debt, net of current portion
100.0 
 
 
Remaining borrowing capacity
305.0 
 
 
Number of days from the funding within which amount is payable
30 
 
 
Uncommitted line of credit
 
 
 
Borrowings
 
 
 
Maximum borrowing capacity
45.0 
 
35.0 
Average interest rate (as a percent)
1.50% 
 
1.50% 
Industrial development and revenue bonds through 2018
 
 
 
Borrowings
 
 
 
Total long-term debt
5.5 
 
5.5 
Other, including capital lease obligations
 
 
 
Borrowings
 
 
 
Total long-term debt
$ 0.5 
 
$ 10.4 
Retirement Plans (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Jun. 30, 2012
Defined Benefit Plans
Jun. 30, 2011
Defined Benefit Plans
Jun. 30, 2012
Defined Benefit Plans
Jun. 30, 2011
Defined Benefit Plans
Jun. 30, 2012
Post-retirement Welfare Plans
Jun. 30, 2011
Post-retirement Welfare Plans
Jun. 30, 2012
Post-retirement Welfare Plans
Jun. 30, 2011
Post-retirement Welfare Plans
Components of net periodic benefit cost
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
 
 
$ 1.2 
$ 1.3 
$ 2.3 
$ 2.6 
 
 
 
 
Interest cost
 
 
 
2.5 
2.7 
5.0 
5.3 
0.1 
0.1 
0.2 
0.2 
Expected return on plan assets
 
 
 
(3.5)
(3.7)
(7.1)
(7.3)
 
 
 
 
Amortization of unrecognized net loss
 
 
 
1.3 
1.1 
2.6 
2.3 
 
 
 
 
Net periodic benefit cost
 
 
 
1.5 
1.4 
2.8 
2.9 
0.1 
0.1 
0.2 
0.2 
Contributions expected to be made by employer to pension plans in 2012
 
 
 
4.0 
 
4.0 
 
 
 
 
 
Company's contribution to pension plan
 
 
 
 
 
1.0 
1.0 
 
 
 
 
Defined Contribution Plans
 
 
 
 
 
 
 
 
 
 
 
Defined contribution plan expense recognized
6.1 
5.7 
 
 
 
 
 
 
 
 
 
Expected amount of contribution to defined contribution plans in current fiscal year
11.5 
 
 
 
 
 
 
 
 
 
 
Deferred compensation assets classified in prepaid expenses and other current assets
$ 1.4 
 
$ 0.6 
 
 
 
 
 
 
 
 
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
1.8 
 
1.9 
 
 
 
 
 
 
 
 
Product Warranties (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Dec. 31, 2011
Product Warranties
 
 
 
Beginning Reserve
$ 19.9 
 
 
Current year provision
7.0 
 
 
Current year claims
(6.2)
 
 
Ending Reserve
20.7 
 
 
Deferred revenue recognized due to extended product warranty revenues
8.3 
7.9 
 
Deferred revenue
 
 
 
Current
16.2 
 
15.9 
Long-term
132.7 
 
128.6 
Deferred revenue
$ 148.9 
 
$ 144.5 
Other Long-Term Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Jun. 30, 2012
Dec. 31, 2011
Other Long-Term Liabilities
 
 
Deferred taxes and other tax liabilities
$ 258.9 
$ 253.8 
Pension and other post-retirement obligations
17.8 
19.1 
Deferred credits
8.8 
9.1 
Deferred compensation
6.6 
5.5 
Other
2.4 
2.8 
Other long-term liabilities
$ 294.5 
$ 290.3