UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


			☒			QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED ~~March 31,~~June 30, 2021

Commission file number 1-9278

www.carlisle.com

CARLISLE COMPANIES INCORPORATED

(Exact name of registrant as specified in its charter)

Delaware

31-1168055

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

~~(480) 781-5000~~

~~(Registrant's telephone number, including area code)~~

16430 North Scottsdale Road, Suite 400, Scottsdale, Arizona 85254

(Address of principal executive offices, including zip code)

(480) 781-5000

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock

CSL

New York Stock Exchange

Preferred stock purchase rights

n/a

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.


Yes			☒			No			☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).


Yes			☒			No			☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


Yes			☐			No			☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).


Yes			☐			No			☒

On ~~April~~July 21, 2021, there were ~~52,191,863~~52,125,596 shares of the registrant's common stock, par value $1.00 per share, outstanding.

Carlisle Companies Incorporated

Table of Contents


			Page
PART I

Item 1. Financial Statements			3

Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited)			3

Condensed Consolidated Balance Sheets (Unaudited)			4

Condensed Consolidated Statement of Cash Flows (Unaudited)			5

Condensed Statement of Shareholders' Equity (Unaudited)			67

Notes to Condensed Consolidated Financial Statements (Unaudited)			78

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			1722

Item 3. Quantitative and Qualitative Disclosure about Market Risk			2735

Item 4. Controls and Procedures			2735

PART II

Item 1. Legal Proceedings			2735

Item 1A. Risk Factors			2735

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			2735

Item 3. Defaults Upon Senior Securities			2735

Item 4. Mine Safety Disclosures			2735

Item 5. Other Information			2735

Item 6. Exhibits			2836

Signature			2937

PART I

Item 1. Financial Statements

Carlisle Companies Incorporated

Condensed Consolidated Statements of Income and Comprehensive Income (Unaudited)


		Three Months Ended March 31,					Three Months Ended June 30,				Six Months Ended June 30,
(in millions, except per share amounts)	(in millions, except per share amounts)		2021		2020			(in millions, except per share amounts)	2021		2020		2021		2020
Revenues	Revenues		$	1,029.0	$	1,030.2		Revenues	$	1,177.8	$	965.4	$	2,118.7	$	1,924.6

Cost of goods sold	Cost of goods sold		767.3		751.8			Cost of goods sold	870.1		695.3		1,566.1		1,385.1
Selling and administrative expenses	Selling and administrative expenses		159.8		161.9			Selling and administrative expenses	161.3		144.6		312.1		295.5
Research and development expenses	Research and development expenses		12.6		14.4			Research and development expenses	13.8		11.7		24.2		23.6

Other operating income, net	Other operating income, net		(0.2)		(0.6)			Other operating income, net	(1.2)		(0.7)		(2.2)		(1.3)
Operating income	Operating income		89.5		102.7			Operating income	133.8		114.5		218.5		221.7
Interest expense, net	Interest expense, net		19.2		18.9			Interest expense, net	19.2		19.7		38.4		38.7
Loss on extinguishment of debt	Loss on extinguishment of debt		0		8.8			Loss on extinguishment of debt	0		0		0		8.8
Interest income	Interest income		(0.5)		(0.7)			Interest income	(0.4)		(2.6)		(0.9)		(3.3)
Other non-operating expense (income), net	Other non-operating expense (income), net		3.9		(0.5)			Other non-operating expense (income), net	1.1		(0.7)		4.7		(0.9)
Income before income taxes			66.9		76.2
Income from continuing operations before income taxes								Income from continuing operations before income taxes	113.9		98.1		176.3		178.4
Provision for income taxes	Provision for income taxes		14.7		14.4			Provision for income taxes	19.8		22.1		33.1		37.6
Income from continuing operations								Income from continuing operations	94.1		76.0		143.2		140.8

Discontinued operations:								Discontinued operations:
Income (loss) before income taxes								Income (loss) before income taxes	6.3		(1.1)		10.8		(5.2)
Provision for (benefit from) income taxes								Provision for (benefit from) income taxes	1.1		(0.5)		2.5		(1.6)
Income (loss) from discontinued operations								Income (loss) from discontinued operations	5.2		(0.6)		8.3		(3.6)
Net income	Net income		$	52.2	$	61.8		Net income	$	99.3	$	75.4	$	151.5	$	137.2

Earnings per share attributable to common shares:
Basic earnings per share attributable to common shares:								Basic earnings per share attributable to common shares:
Income from continuing operations								Income from continuing operations	$	1.79	$	1.38	$	2.71	$	2.54
Income (loss) from discontinued operations								Income (loss) from discontinued operations	0.10		(0.01)		0.16		(0.07)
Basic earnings per share								Basic earnings per share	$	1.89	$	1.37	$	2.87	$	2.47

Basic			$	0.98	$	1.10

Diluted			$	0.97	$	1.09
Diluted earnings per share attributable to common shares:								Diluted earnings per share attributable to common shares:
Income from continuing operations								Income from continuing operations	$	1.77	$	1.37	$	2.68	$	2.52
Income (loss) from discontinued operations								Income (loss) from discontinued operations	0.10		(0.01)		0.16		(0.07)
Diluted earnings per share								Diluted earnings per share	$	1.87	$	1.36	$	2.84	$	2.45

Average shares outstanding:	Average shares outstanding:							Average shares outstanding:
Basic	Basic		53.0		55.8			Basic	52.3		54.8		52.7		55.3
Diluted	Diluted		53.6		56.5			Diluted	53.0		55.2		53.3		55.8

Comprehensive income:	Comprehensive income:							Comprehensive income:
Net income	Net income		$	52.2	$	61.8		Net income	$	99.3	$	75.4	$	151.5	$	137.2
Other comprehensive loss:
Foreign currency losses			(13.3)		(28.3)
Other comprehensive income (loss):								Other comprehensive income (loss):
Foreign currency gains (losses)								Foreign currency gains (losses)	6.8		7.8		(6.5)		(20.5)
Amortization of unrecognized net periodic benefit costs, net of tax	Amortization of unrecognized net periodic benefit costs, net of tax		1.2		1.0			Amortization of unrecognized net periodic benefit costs, net of tax	1.2		1.0		2.4		2.0
Other, net of tax	Other, net of tax		(2.0)		(18.2)			Other, net of tax	0.3		0.7		(1.7)		(17.5)
Other comprehensive loss			(14.1)		(45.5)
Other comprehensive income (loss)								Other comprehensive income (loss)	8.3		9.5		(5.8)		(36.0)
Comprehensive income	Comprehensive income		$	38.1	$	16.3		Comprehensive income	$	107.6	$	84.9	$	145.7	$	101.2

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)

Carlisle Companies Incorporated

Condensed Consolidated Balance Sheets (Unaudited)

(in millions, except par values) March 31,
2021 December 31,
2020
ASSETS
Current assets:
Cash and cash equivalents $ 767.2 $ 902.2
Receivables, net of allowance for credit losses of $6.3 million and $6.8 million, respectively 683.2 612.7
Inventories, net 528.2 503.5
Contract assets 77.1 84.5
Prepaid expenses 27.4 37.0
Other current assets 61.4 69.4
Total current assets 2,144.5 2,209.3
Property, plant, and equipment, net 764.4 774.1
Goodwill, net 1,735.5 1,738.2
Other intangible assets, net 1,000.8 1,034.8
Other long-term assets 107.0 110.0
Total assets $ 5,752.2 $ 5,866.4
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable $ 359.2 $ 317.6
Accrued and other current liabilities 266.8 295.0
Contract liabilities 32.9 32.5
Current portion of debt 1.2 1.1
Total current liabilities 660.1 646.2
Long-term liabilities:
Long-term debt, less current portion 2,081.0 2,080.2
Contract liabilities 238.1 235.8
Other long-term liabilities 361.2 366.5
Total long-term liabilities 2,680.3 2,682.5
Shareholders' equity:
Preferred stock, $1 par value per share (5.0 shares authorized and unissued) 0 0
Common stock, $1 par value per share (200.0 shares authorized; 52.1 and 52.9 shares outstanding, respectively) 78.7 78.7
Additional paid-in capital 443.4 441.7
Treasury shares, at cost (26.3 and 25.5 shares, respectively) (1,951.6) (1,814.4)
Accumulated other comprehensive loss (111.1) (97.0)
Retained earnings 3,952.4 3,928.7
Total shareholders' equity 2,411.8 2,537.7
Total liabilities and equity $ 5,752.2 $ 5,866.4


(in millions, except par values)	June 30, 2021		December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	713.3	$	897.1
Receivables, net of allowance for credit losses of $4.7 million and $5.0 million, respectively	722.4		554.4
Inventories, net	462.6		432.7
Contract assets	71.5		84.5
Prepaid expenses	23.4		35.8
Other current assets	69.4		60.2
Assets held for sale	449.9		144.6
Total current assets	2,512.5		2,209.3

Property, plant, and equipment, net	674.2		672.1
Goodwill, net	1,640.2		1,641.7
Other intangible assets, net	903.9		960.9
Other long-term assets	108.5		107.4
Assets held for sale	0		275.0
Total assets	$	5,839.3	$	5,866.4

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	387.1	$	284.5
Accrued and other current liabilities	246.1		274.6
Contract liabilities	34.5		32.5
Current portion of debt	1.2		1.1
Liabilities held for sale	92.8		53.5
Total current liabilities	761.7		646.2

Long-term liabilities:
Long-term debt, less current portion	2,080.4		2,080.2
Contract liabilities	240.5		235.8
Other long-term liabilities	338.8		344.6
Liabilities held for sale	0		21.9
Total long-term liabilities	2,659.7		2,682.5

Shareholders' equity:
Preferred stock, $1 par value per share (5.0 shares authorized and unissued)	0		0
Common stock, $1 par value per share (200.0 shares authorized; 51.9 and 52.9 shares outstanding, respectively)	78.7		78.7
Additional paid-in capital	460.1		441.7
Treasury shares, at cost (26.5 and 25.5 shares, respectively)	(2,042.3)		(1,814.4)
Accumulated other comprehensive loss	(102.8)		(97.0)
Retained earnings	4,024.2		3,928.7
Total shareholders' equity	2,417.9		2,537.7
Total liabilities and equity	$	5,839.3	$	5,866.4

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)

Carlisle Companies Incorporated

Condensed Consolidated Statements of Cash Flows (Unaudited)


		Three Months Ended March 31,					Six Months Ended June 30,
(in millions)	(in millions)	2021		2020		(in millions)	2021		2020
Operating activities:	Operating activities:					Operating activities:
Net income	Net income	$	52.2	$	61.8	Net income	$	151.5	$	137.2
Reconciliation of net income to net cash provided by operating activities:	Reconciliation of net income to net cash provided by operating activities:					Reconciliation of net income to net cash provided by operating activities:
Depreciation	Depreciation	23.7		24.6		Depreciation	46.3		49.1
Amortization	Amortization	30.6		32.2		Amortization	60.8		63.7
Lease expense	Lease expense	6.8		7.4		Lease expense	13.5		14.1

Stock-based compensation	Stock-based compensation	14.9		12.7		Stock-based compensation	8.7		14.9
Loss on extinguishment of debt	Loss on extinguishment of debt	0		8.8		Loss on extinguishment of debt	0		8.8
Deferred taxes	Deferred taxes	(1.1)		(2.3)		Deferred taxes	0.7		(1.1)

Other operating activities, net	Other operating activities, net	4.2		6.0		Other operating activities, net	9.5		11.5
Changes in assets and liabilities, excluding effects of acquisitions:	Changes in assets and liabilities, excluding effects of acquisitions:					Changes in assets and liabilities, excluding effects of acquisitions:
Receivables	Receivables	(72.9)		(8.3)		Receivables	(190.7)		(11.8)
Inventories	Inventories	(30.8)		(64.9)		Inventories	(40.6)		(48.4)
Contract assets	Contract assets	8.2		(3.3)		Contract assets	13.7		(1.4)
Prepaid expenses and other assets	Prepaid expenses and other assets	20.6		32.5		Prepaid expenses and other assets	16.3		29.4
Accounts payable	Accounts payable	45.6		6.9		Accounts payable	118.3		(5.0)
Accrued and other current liabilities	Accrued and other current liabilities	(24.7)		(58.9)		Accrued and other current liabilities	(20.9)		(31.8)
Contract liabilities	Contract liabilities	2.9		6.9		Contract liabilities	6.8		11.5
Other long-term liabilities	Other long-term liabilities	(12.6)		(8.9)		Other long-term liabilities	(22.4)		(14.4)
Net cash provided by operating activities	Net cash provided by operating activities	67.6		53.2		Net cash provided by operating activities	171.5		226.3

Investing activities:	Investing activities:					Investing activities:
Capital expenditures	Capital expenditures	(20.0)		(22.8)		Capital expenditures	(55.1)		(48.5)
Investment in securities	Investment in securities	(10.2)		0		Investment in securities	(10.2)		0
Acquisitions, net of cash acquired	Acquisitions, net of cash acquired	0		(2.4)		Acquisitions, net of cash acquired	0		(2.4)

Other investing activities, net	Other investing activities, net	1.8		0.9		Other investing activities, net	1.8		0.9
Net cash used in investing activities	Net cash used in investing activities	(28.4)		(24.3)		Net cash used in investing activities	(63.5)		(50.0)

Financing activities:	Financing activities:					Financing activities:
Proceeds from notes	Proceeds from notes	0		740.7		Proceeds from notes	0		740.7
Repayment of notes	Repayment of notes	0		(258.5)		Repayment of notes	0		(258.5)
Borrowings from revolving credit facility	Borrowings from revolving credit facility	0		500.0		Borrowings from revolving credit facility	0		500.0

Repayments of revolving credit facility						Repayments of revolving credit facility	0		(500.0)
Financing costs	Financing costs	0		(24.2)		Financing costs	0		(24.2)
Repurchases of common stock	Repurchases of common stock	(150.0)		(120.6)		Repurchases of common stock	(265.6)		(191.8)
Dividends paid	Dividends paid	(28.4)		(28.3)		Dividends paid	(56.0)		(56.0)
Proceeds from exercise of stock options	Proceeds from exercise of stock options	13.5		10.5		Proceeds from exercise of stock options	45.6		11.4
Withholding tax paid related to stock-based compensation	Withholding tax paid related to stock-based compensation	(7.6)		(6.4)		Withholding tax paid related to stock-based compensation	(7.7)		(6.4)
Other financing activities, net	Other financing activities, net	(0.3)		(0.2)		Other financing activities, net	(0.8)		(0.5)
Net cash (used in) provided by financing activities	Net cash (used in) provided by financing activities	(172.8)		813.0		Net cash (used in) provided by financing activities	(284.5)		214.7

Effect of foreign currency exchange rate changes on cash and cash equivalents	Effect of foreign currency exchange rate changes on cash and cash equivalents	(1.4)		(5.4)		Effect of foreign currency exchange rate changes on cash and cash equivalents	(0.3)		(4.5)
Change in cash and cash equivalents	Change in cash and cash equivalents	(135.0)		836.5		Change in cash and cash equivalents	(176.8)		386.5

Less: change in cash and cash equivalents of discontinued operations						Less: change in cash and cash equivalents of discontinued operations	7.0		0.9
Cash and cash equivalents at beginning of period	Cash and cash equivalents at beginning of period	902.2		351.2		Cash and cash equivalents at beginning of period	897.1		342.5
Cash and cash equivalents at end of period	Cash and cash equivalents at end of period	$	767.2	$	1,187.7	Cash and cash equivalents at end of period	$	713.3	$	728.1

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)

Carlisle Companies Incorporated

Condensed Consolidated Statement of Shareholders’ Equity (Unaudited)


		Common Stock			Additional Paid-In Capital				Accumulated Other Comprehensive Income (Loss)			Retained Earnings		Shares in Treasury					Total Shareholders' Equity					Common Stock				Additional Paid-In Capital				Accumulated Other Comprehensive Income (Loss)			Retained Earnings				Shares in Treasury					Total Shareholders' Equity
(in millions, except per share amounts)	(in millions, except per share amounts)	Shares	Amount								Shares			Cost		(in millions, except per share amounts)		Shares					Amount								Shares							Cost
Balance as of December 31, 2019		55.7	$	78.7			$	416.6				$	(124.1)	$	3,721.3	22.7					$	(1,449.7)		$	2,642.8
Balance as of March 31, 2020																						Balance as of March 31, 2020		54.9		$	78.7		$	422.1			$	(169.6)		$	3,754.8			23.5		$	(1,567.5)		$	2,518.5

Net income	Net income	—	—		—				—			61.8		—		—			61.8			Net income		—		—		—				—			75.4				—		—			75.4
Other comprehensive loss, net of tax		—	—		—				(45.5)			—		—		—			(45.5)
Other comprehensive income, net of tax																						Other comprehensive income, net of tax		—		—		—				9.5			—				—		—			9.5
Dividends - $0.50 per share	Dividends - $0.50 per share	—	—		—				—			(28.3)		—		—			(28.3)			Dividends - $0.50 per share		—		—		—				—			(27.7)				—		—			(27.7)
Repurchases of common stock	Repurchases of common stock	(1.0)	—		—				—			—		1.0		(125.3)			(125.3)			Repurchases of common stock		(0.5)		—		—				—			—				0.5		(66.5)			(66.5)
Issuances and deferrals, net for stock based compensation(1)	Issuances and deferrals, net for stock based compensation(1)	0.2	—		5.5				—			—		(0.2)		7.5			13.0			Issuances and deferrals, net for stock based compensation(1)		—		—		5.7				—			—				0		1.3			7.0
Balance as of March 31, 2020		54.9	$	78.7	$	422.1			$	(169.6)		$	3,754.8	23.5		$	(1,567.5)		$	2,518.5
Balance as of June 30, 2020																						Balance as of June 30, 2020		54.4		$	78.7	$	427.8			$	(160.1)		$	3,802.5			24.0		$	(1,632.7)		$	2,516.2

Balance as of December 31, 2020		52.9	$	78.7	$	441.7			$	(97.0)		$	3,928.7	25.5		$	(1,814.4)		$	2,537.7
Balance as of March 31, 2021																						Balance as of March 31, 2021		52.1		$	78.7	$	443.4			$	(111.1)		$	3,952.4			26.3		$	(1,951.6)		$	2,411.8

Net income	Net income	—	—		—				—			52.2		—		—			52.2			Net income		—		—		—				—			99.3				—		—			99.3
Other comprehensive loss, net of tax		—	—		—				(14.1)			—		—		—			(14.1)
Other comprehensive income, net of tax																						Other comprehensive income, net of tax		—		—		—				8.3			—				—		—			8.3
Dividends - $0.525 per share	Dividends - $0.525 per share	—	—		—				—			(28.5)		—		—			(28.5)			Dividends - $0.525 per share		—		—		—				—			(27.5)				—		—			(27.5)
Repurchases of common stock	Repurchases of common stock	(1.0)	—		—				—			—		1.0		(150.0)			(150.0)			Repurchases of common stock		(0.6)		—		—				—			—				0.6		(115.6)			(115.6)
Issuances and deferrals, net for stock based compensation(1)	Issuances and deferrals, net for stock based compensation(1)	0.2	—		1.7				—			—		(0.2)		12.8			14.5			Issuances and deferrals, net for stock based compensation(1)		0.4		—		16.7				—			—				(0.4)		24.9			41.6
Balance as of March 31, 2021		52.1	$	78.7	$	443.4			$	(111.1)		$	3,952.4	26.3		$	(1,951.6)		$	2,411.8
Balance as of June 30, 2021																						Balance as of June 30, 2021		51.9		$	78.7	$	460.1			$	(102.8)		$	4,024.2			26.5		$	(2,042.3)		$	2,417.9

(1)Issuances and deferrals, net for stock-based compensation reflects share activity related to option exercises, restricted and performance shares vested, and net issuances and deferrals associated with deferred compensation equity.

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)

Carlisle Companies Incorporated

Condensed Consolidated Statement of Shareholders’ Equity (Unaudited)


	Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Shares in Treasury			Total Shareholders' Equity
(in millions, except per share amounts)	Shares	Amount								Shares	Cost
Balance as of December 31, 2019	55.7	$	78.7	$	416.6	$	(124.1)	$	3,721.3	22.7	$	(1,449.7)	$	2,642.8

Net income	—	—		—		—		137.2		—	—		137.2
Other comprehensive loss, net of tax	—	—		—		(36.0)		—		—	—		(36.0)
Dividends - $1.00 per share	—	—		—		—		(56.0)		—	—		(56.0)
Repurchases of common stock	(1.5)	—		—		—		—		1.5	(191.8)		(191.8)
Issuances and deferrals, net for stock based compensation(1)	0.2	—		11.2		—		—		(0.2)	8.8		20.0
Balance as of June 30, 2020	54.4	$	78.7	$	427.8	$	(160.1)	$	3,802.5	24.0	$	(1,632.7)	$	2,516.2

Balance as of December 31, 2020	52.9	$	78.7	$	441.7	$	(97.0)	$	3,928.7	25.5	$	(1,814.4)	$	2,537.7

Net income	—	—		—		—		151.5		—	—		151.5
Other comprehensive loss, net of tax	—	—		—		(5.8)		—		—	—		(5.8)
Dividends - $1.05 per share	—	—		—		—		(56.0)		—	—		(56.0)
Repurchases of common stock	(1.6)	—		—		—		—		1.6	(265.6)		(265.6)
Issuances and deferrals, net for stock based compensation(1)	0.6	—		18.4		—		—		(0.6)	37.7		56.1
Balance as of June 30, 2021	51.9	$	78.7	$	460.1	$	(102.8)	$	4,024.2	26.5	$	(2,042.3)	$	2,417.9

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)

Carlisle Companies Incorporated

Notes to Condensed Consolidated Financial Statements (Unaudited)

Note 1—Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by Carlisle Companies Incorporated (the "Company" or "Carlisle"). The accompanying unaudited Condensed Consolidated Financial Statements do not include all disclosures as required by accounting principles generally accepted in the United States of America ("United States" or "U.S."), and should be read in conjunction with the Company’s audited Consolidated Financial Statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2020 (the "2020 Annual Report on Form 10-K").

The accompanying unaudited Condensed Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the U.S. and, of necessity, include some amounts that are based upon management estimates and judgments. The accompanying unaudited Condensed Consolidated Financial Statements include assets, liabilities, revenues and expenses of all majority-owned subsidiaries. Intercompany transactions and balances are eliminated in consolidation.

In the Company's opinion, the accompanying unaudited Condensed Consolidated Financial Statements contain all adjustments, consisting solely of adjustments of a normal, recurring nature, necessary to present fairly the financial position, results of operations and cash flows for the periods presented.

Discontinued Operations

The results of operations for the Company's Carlisle Brake & Friction ("CBF") segment have been classified as discontinued operations for all periods presented in the Condensed Consolidated Statements of Income. Assets and liabilities subject to the sale agreement for CBF have been classified as held for sale for all periods presented in the Condensed Consolidated Balance Sheets. Refer to Note 4 for additional information.

Note 2—Segment Information

The Company reports its results of operations through the following 43 segments, each of which represents a reportable segment as follows:

Carlisle Construction Materials ("CCM")—this segment produces a complete range of building envelope products for commercial, industrial and residential buildings, including single-ply roofing, rigid foam insulations, spray polyurethane foam technologies, architectural metal, heating, ventilation and air conditioning ("HVAC") hardware and sealants, below-grade waterproofing, and air and vapor barrier systems focused on the weatherproofing and thermal performance of the building envelope.

Carlisle Interconnect Technologies ("CIT")—this segment produces high-performance wire and cable, including optical fiber, for the commercial aerospace, military and defense electronics, medical device, industrial, and test and measurement markets. CIT's product portfolio also includes sensors, connectors, contacts, cable assemblies, complex harnesses, racks, trays, and installation kits, in addition to engineering and certification services.

Carlisle Fluid Technologies ("CFT")—this segment produces highly engineered liquid, powder, sealants and adhesives finishing equipment and integrated system solutions for spraying, pumping, mixing, metering and curing of a variety of coatings used in the automotive manufacture, general industrial, protective coating, wood, specialty and automotive refinishing markets.

~~Carlisle Brake & Friction ("CBF")~~
~~—this segment produces high performance and severe duty brake, clutch and transmission applications for the construction, agriculture, mining, aircraft, on-highway and other industrial markets.~~

A summary of segment information follows:


		Three Months Ended March 31,									Three Months Ended June 30,
		2021				2020					2021				2020
(in millions)	(in millions)	Revenues		Operating Income (Loss)		Revenues		Operating Income (Loss)		(in millions)	Revenues		Operating Income (Loss)		Revenues		Operating Income (Loss)
Carlisle Construction Materials	Carlisle Construction Materials	$	719.3	$	121.3	$	676.4	$	107.7	Carlisle Construction Materials	$	937.3	$	177.4	$	734.9	$	137.6
Carlisle Interconnect Technologies	Carlisle Interconnect Technologies	155.8		(10.7)		224.5		16.4		Carlisle Interconnect Technologies	168.9		(12.9)		184.0		(1.5)
Carlisle Fluid Technologies	Carlisle Fluid Technologies	65.8		4.3		58.3		2.8		Carlisle Fluid Technologies	71.6		6.6		46.5		(5.2)
Carlisle Brake & Friction		88.1		6.1		71.0		(3.8)
Segment total	Segment total	1,029.0		121.0		1,030.2		123.1		Segment total	1,177.8		171.1		965.4		130.9
Corporate and unallocated(1)	Corporate and unallocated(1)	0		(31.5)		0		(20.4)		Corporate and unallocated(1)	0		(37.3)		0		(16.4)
Total	Total	$	1,029.0	$	89.5	$	1,030.2	$	102.7	Total	$	1,177.8	$	133.8	$	965.4	$	114.5

											Six Months Ended June 30,
											2021				2020
(in millions)										(in millions)	Revenues		Operating Income (Loss)		Revenues		Operating Income (Loss)
Carlisle Construction Materials										Carlisle Construction Materials	$	1,656.6	$	298.7	$	1,411.3	$	245.3
Carlisle Interconnect Technologies										Carlisle Interconnect Technologies	324.7		(23.6)		408.5		14.9
Carlisle Fluid Technologies										Carlisle Fluid Technologies	137.4		10.9		104.8		(2.4)
Segment total										Segment total	2,118.7		286.0		1,924.6		257.8
Corporate and unallocated(1)										Corporate and unallocated(1)	0		(67.5)		0		(36.1)
Total										Total	$	2,118.7	$	218.5	$	1,924.6	$	221.7

(1)Corporate operating loss includes other unallocated costs, primarily general corporate expenses.

Note 3—Acquisitions

Motion Tech Automation, LLC

On July 22, 2020, the Company acquired 100% of the equity of Motion Tech Automation, LLC ("MTA") for consideration of $33.3 million, including $0.3 million of cash acquired and post-closing adjustments, which were finalized in the third quarter of 2020. The acquired products and services include sensors, manufacturing services, distribution services and engineering services to packaging and label, life sciences, semiconductor, fluid handling, and test and measurement customers.

Consideration of $16.4 million has been preliminarily allocated to goodwill, $4.3 million to definite-lived intangible assets, $4.9 million to inventory, $2.7 million to accounts receivable and $1.3 million to accounts payable. In accordance with the purchase agreement, Carlisle is indemnified for up to $1.6 million, and recorded an indemnification asset of $1.5 million in other long-term assets relating to the indemnification for pre-acquisition debt and tax ~~withholdings~~withholding liabilities. During the second quarter of 2021, the pre-acquisition debt of $1.4 million was relieved along with the corresponding indemnification asset.

The preliminary fair value and weighted average useful lives of the acquired definite-lived intangible assets are as follows:


(in millions)	Fair Value		Weighted Average Useful Life (in years)
Technologies	$	2.3	9
Customer relationships	1.0		9
Trade names	1.0		5
Total	$	4.3

All of the $16.4 million preliminary value allocated to goodwill is deductible for tax purposes. Goodwill of $11.0 million, $2.8 million and $2.6 million has been preliminarily assigned to the CCM, CIT and CFT reporting units, respectively, which aligns with the reportable segments.

Note 4—Discontinued Operations

On May 25, 2021, the Company signed a definitive agreement to sell CBF to certain direct and indirect wholly-owned subsidiaries of BRWS Parent LLC, a portfolio company of One Rock Capital Partners (“CentroMotion”), for gross proceeds of (i) $250 million cash at closing, subject to certain adjustments, and (ii) the right to receive up to an additional $125 million based on CBF's achievement of certain performance targets. The transaction is subject to customary closing conditions and is expected to close in the third quarter of 2021. The sale of CBF is consistent with the Company's optimization strategy, as laid out in Vision 2025.

A summary of the results from discontinued operations included in the Condensed Consolidated Statements of Income and Comprehensive Income follows:


(in millions)	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Revenues	$	98.8	$	58.8	$	186.9	$	129.8

Cost of goods sold	76.1		47.8		147.4		109.8
Other operating expenses, net	11.8		12.1		23.8		25.6
Operating income (loss)	10.9		(1.1)		15.7		(5.6)
Other non-operating (income) expense, net	(0.1)		0		0.2		(0.4)
Income (loss) from discontinued operations before income taxes	11.0		(1.1)		15.5		(5.2)
Pre-close transaction expenses(1)	(4.7)		0		(4.7)		0
Provision for (benefit from) income taxes	1.1		(0.5)		2.5		(1.6)
Income (loss) from discontinued operations	$	5.2	$	(0.6)	$	8.3	$	(3.6)

(1)Includes legal fees and stock-compensation expense directly related to the sale incurred prior to the close of the transaction.

A summary of the carrying amounts of major assets and liabilities, which were classified as held for sale in the Condensed Consolidated Balance Sheets follows:


(in millions)	June 30, 2021		December 31, 2020
ASSETS
Cash and cash equivalents	$	12.0	$	5.1
Receivables, net	79.7		58.3
Inventories	72.3		70.8
Prepaid other current assets	10.4		10.4
Current assets	174.4		144.6
Long-term assets reclassified to current assets	275.5		0
Total current assets	449.9		144.6

Property, plant, and equipment, net	101.2		102.0
Goodwill, net	96.5		96.5
Other intangible assets, net	71.3		73.9
Other long-term assets	6.5		2.6
Long-term assets	275.5		275.0
Long-term assets reclassified to current assets	(275.5)		0
Total long-term assets	$	0	$	275.0

LIABILITIES
Accounts payable	$	44.8	$	33.1
Accrued liabilities and other	22.7		20.4
Current liabilities	67.5		53.5
Long-term liabilities reclassified to current liabilities	25.3		0
Total current liabilities	92.8		53.5

Other long-term liabilities	25.3		21.9
Long-term liabilities	25.3		21.9
Long-term liabilities reclassified to current liabilities	(25.3)		0
Total long-term liabilities	$	0	$	21.9

A summary of cash flows from discontinued operations included in the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, follows:



(in millions)	2021		2020
Net cash provided by operating activities	$	10.8	$	15.4
Net cash used in investing activities	(5.6)		(5.0)
Net cash provided by (used in) financing activities(1)	1.8		(9.5)
Change in cash and cash equivalents from discontinued operations	$	7.0	$	0.9

(1)Represents borrowings or (repayments) from the Carlisle cash pool to fund working capital and capital expenditures.

Note 5—Earnings Per Share

The Company’s restricted shares contain non-forfeitable rights to dividends and 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 income attributable to the unvested restricted shares from the numerator and excludes the dilutive impact of those underlying shares from the denominator.

The computation below of earnings per share includes the income attributable to the vested and deferred restricted shares and restricted stock units in the numerator and includes the dilutive impact of those underlying shares in 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 considering those are contingently issuable. Neither is considered to be a participating security as they do not contain non-forfeitable dividend rights.

Net income and share data used in the basic and diluted earnings per share computations using the two-class method follows:


		Three Months Ended March 31,						Three Months Ended June 30,					Six Months Ended June 30,
(in millions, except per share amounts)	(in millions, except per share amounts)		2021			2020			(in millions, except per share amounts)	2021			2020			2021			2020
Net income			$	52.2		$	61.8
Income from continuing operations									Income from continuing operations	$	94.1		$	76.0		$	143.2		$	140.8
Less: dividends declared	Less: dividends declared		(28.5)			(28.3)			Less: dividends declared	(27.5)			(27.7)			(56.0)			(56.0)
Undistributed earnings	Undistributed earnings		23.7			33.5			Undistributed earnings	66.6			48.3			87.2			84.8
Percent allocated to common shareholders(1)	Percent allocated to common shareholders(1)		99.7		%	99.7		%	Percent allocated to common shareholders(1)	99.7		%	99.7		%	99.7		%	99.7		%
			23.6			33.4				66.4			48.2			86.9			84.5
Add: dividends declared on common stock, restricted share units and vested and deferred restricted and performance shares	Add: dividends declared on common stock, restricted share units and vested and deferred restricted and performance shares		28.4			28.2			Add: dividends declared on common stock, restricted share units and vested and deferred restricted and performance shares	27.5			27.7			55.9			55.9
Net income attributable to common shares			$	52.0		$	61.6
Income from continuing operations attributable to common shares									Income from continuing operations attributable to common shares	$	93.9		$	75.9		$	142.8		$	140.4

Shares:	Shares:								Shares:
Basic weighted-average shares outstanding	Basic weighted-average shares outstanding		53.0			55.8			Basic weighted-average shares outstanding	52.3			54.8			52.7			55.3
Effect of dilutive securities:	Effect of dilutive securities:								Effect of dilutive securities:
Performance awards	Performance awards		0.1			0.2			Performance awards	0.2			0.2			0.1			0.2
Stock options	Stock options		0.5			0.5			Stock options	0.5			0.2			0.5			0.3
Diluted weighted-average shares outstanding	Diluted weighted-average shares outstanding		53.6			56.5			Diluted weighted-average shares outstanding	53.0			55.2			53.3			55.8

Per share net income attributable to common shares:
Per share income from continuing operations attributable to common shares:									Per share income from continuing operations attributable to common shares:
Basic	Basic		$	0.98		$	1.10		Basic	$	1.79		$	1.38		$	2.71		$	2.54
Diluted	Diluted		$	0.97		$	1.09		Diluted	$	1.77		$	1.37		$	2.68		$	2.52

(1) Basic weighted-average common shares outstanding	(1) Basic weighted-average common shares outstanding		53.0			55.8			(1) Basic weighted-average common shares outstanding	52.3			54.8			52.7			55.3
Basic weighted-average shares outstanding and unvested restricted shares expected to vest	Basic weighted-average shares outstanding and unvested restricted shares expected to vest		53.2			56.0			Basic weighted-average shares outstanding and unvested restricted shares expected to vest	52.5			55.0			52.8			55.5
Percent allocated to common shareholders	Percent allocated to common shareholders		99.7		%	99.7		%	Percent allocated to common shareholders	99.7		%	99.7		%	99.7		%	99.7		%


		Three Months Ended March 31,			Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	(in millions)		2021	2020		(in millions)	2021		2020		2021		2020

Anti-dilutive stock options excluded from EPS calculation(1)			0.6	0.2
Income (loss) from discontinued operations attributable to common shareholders for basic and diluted earnings per share						Income (loss) from discontinued operations attributable to common shareholders for basic and diluted earnings per share	$	5.2	$	(0.6)	$	8.3	$	(3.6)
Net income attributable to common shareholders for basic and diluted earnings per share						Net income attributable to common shareholders for basic and diluted earnings per share	99.2		75.3		151.1		136.9
Anti-dilutive stock options excluded from earnings per share calculation(1)						Anti-dilutive stock options excluded from earnings per share calculation(1)	0		0.5		0.3		0.3

(1)Represents stock options excluded from the calculation of diluted earnings per share, as such options’ assumed proceeds upon exercise would result in the repurchase of more shares than the underlying award.

Note 5—6—Revenue Recognition

The Company receives payment at the inception of the contract for separately priced extended service warranties, and revenue is deferred and recognized on a straight-line basis over the life of the contracts. Remaining performance obligations for extended service warranties represent the transaction price for the remaining ~~stand-ready~~stand-

ready obligation to perform warranty services. A summary of estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied as of ~~March 31,~~June 30, 2021, follows:


(in millions)	(in millions)	Remainder of 2021		2022		2023		2024		2025		2026		Thereafter		(in millions)	Remainder of 2021		2022		2023		2024		2025		2026		Thereafter
Extended service warranties	Extended service warranties	$	17.5	$	22.1	$	20.9	$	19.9	$	19.0	$	18.0	$	143.5	Extended service warranties	$	11.8	$	22.6	$	21.4	$	20.3	$	19.4	$	18.4	$	149.4

The Company has applied the practical expedient to not disclose information about remaining performance obligations that have original expected durations of one year or less.

Contract Balances

Contract liabilities relate to payments received in advance of performance under a contract, primarily related to extended service warranties in the CCM segment, systems contracts in the CFT segment and highly customized product contracts in the CIT segment. Contract liabilities are recognized as revenue as (or when) the Company performs under the contract. A summary of the change in contract liabilities for the ~~three~~six months ended ~~March 31,~~June 30, follows:


(in millions)	(in millions)	2021		2020		(in millions)	2021		2020
Balance as of January 1	Balance as of January 1	$	268.3	$	247.4	Balance as of January 1	$	268.3	$	247.4
Revenue recognized	Revenue recognized	(15.2)		(13.3)		Revenue recognized	(32.0)		(28.8)
Revenue deferred	Revenue deferred	17.9		20.1		Revenue deferred	38.7		40.2

Balance as of March 31		$	271.0	$	254.2
Balance as of June 30						Balance as of June 30	$	275.0	$	258.8

Contract assets relate to the Company's right to payment for performance completed to date under a contract, primarily related to highly customized product contracts within the CIT and CFT segments. Accounts receivable are recorded when the right to payment becomes unconditional, which generally occurs over twelve months or less. A summary of the change in contract assets for the ~~three~~six months ended ~~March 31,~~June 30, follows:


(in millions)	(in millions)	2021		2020		(in millions)	2021		2020
Balance as of January 1	Balance as of January 1	$	84.5	$	100.5	Balance as of January 1	$	84.5	$	100.5
Balance as of March 31		77.1		103.6
Balance as of June 30						Balance as of June 30	71.5		101.9
Change in contract assets	Change in contract assets	$	(7.4)	$	3.1	Change in contract assets	$	(13.0)	$	1.4

Revenues by End-Market

A summary of revenues disaggregated by major end-market industries and reconciliation of disaggregated revenue by segment follows:


		Three Months Ended March 31, 2021											Three Months Ended June 30, 2021
(in millions)	(in millions)	CCM		CIT		CFT		CBF		Total		(in millions)	CCM		CIT		CFT		Total
General construction	General construction	$	674.1	$	0	$	0	$	0	$	674.1	General construction	$	881.9	$	0	$	0	$	881.9
Aerospace	Aerospace	0		65.9		0		3.9		69.8		Aerospace	0		74.0		0		74.0
Heavy equipment	Heavy equipment	20.3		0		0		71.9		92.2		Heavy equipment	22.9		0		0		22.9
Medical	Medical	0		55.2		0		0		55.2		Medical	0		59.1		0		59.1
Transportation	Transportation	0		0		33.8		8.9		42.7		Transportation	0		0		35.9		35.9
General industrial and other	General industrial and other	24.9		34.7		32.0		3.4		95.0		General industrial and other	32.5		35.8		35.7		104.0
Total revenues	Total revenues	$	719.3	$	155.8	$	65.8	$	88.1	$	1,029.0	Total revenues	$	937.3	$	168.9	$	71.6	$	1,177.8

		Three Months Ended March 31, 2020											Three Months Ended June 30, 2020
(in millions)	(in millions)	CCM		CIT		CFT		CBF		Total		(in millions)	CCM		CIT		CFT		Total
General construction	General construction	$	635.8	$	0	$	0	$	0	$	635.8	General construction	$	699.2	$	0	$	0	$	699.2
Aerospace	Aerospace	0		136.7		0		5.9		142.6		Aerospace	0		80.8		0		80.8
Heavy equipment	Heavy equipment	21.5		0		0		54.1		75.6		Heavy equipment	14.0		0		0		14.0
Medical	Medical	0		48.2		0		0		48.2		Medical	0		62.8		0		62.8
Transportation	Transportation	0		0		35.3		8.2		43.5		Transportation	0		0		23.2		23.2
General industrial and other	General industrial and other	19.1		39.6		23.0		2.8		84.5		General industrial and other	21.7		40.4		23.3		85.4
Total revenues	Total revenues	$	676.4	$	224.5	$	58.3	$	71.0	$	1,030.2	Total revenues	$	734.9	$	184.0	$	46.5	$	965.4

1013


	Six Months Ended June 30, 2021
(in millions)	CCM		CIT		CFT		Total
General construction	$	1,556.0	$	0	$	0	$	1,556.0
Aerospace	0		139.9		0		139.9
Heavy equipment	43.2		0		0		43.2
Medical	0		114.3		0		114.3
Transportation	0		0		69.7		69.7
General industrial and other	57.4		70.5		67.7		195.6
Total revenues	$	1,656.6	$	324.7	$	137.4	$	2,118.7

	Six Months Ended June 30, 2020
(in millions)	CCM		CIT		CFT		Total
General construction	$	1,335.0	$	0	$	0	$	1,335.0
Aerospace	0		217.5		0		217.5
Heavy equipment	35.5		0		0		35.5
Medical	0		111.0		0		111.0
Transportation	0		0		58.5		58.5
General industrial and other	40.8		80.0		46.3		167.1
Total revenues	$	1,411.3	$	408.5	$	104.8	$	1,924.6

Revenues by Geographic Area

A summary of revenues based on the country to which the product was delivered and reconciliation of disaggregated revenue by segment follows:


		Three Months Ended March 31, 2021											Three Months Ended June 30, 2021
(in millions)	(in millions)	CCM		CIT		CFT		CBF		Total		(in millions)	CCM		CIT		CFT		Total
United States	United States	$	626.3	$	111.5	$	30.6	$	27.5	$	795.9	United States	$	831.5	$	126.8	$	31.4	$	989.7
International:	International:											International:
Europe	Europe	60.6		14.4		12.5		29.6		117.1		Europe	64.1		16.3		13.6		94.0
Asia	Asia	3.9		20.6		19.2		22.6		66.3		Asia	6.2		18.9		22.1		47.2
North America (excluding U.S.)	North America (excluding U.S.)	23.6		4.5		2.5		4.1		34.7		North America (excluding U.S.)	31.2		2.5		2.8		36.5
Middle East and Africa	Middle East and Africa	3.4		2.6		0.4		0.3		6.7		Middle East and Africa	4.2		2.4		0.4		7.0
Other	Other	1.5		2.2		0.6		4.0		8.3		Other	0.1		2.0		1.3		3.4
Total international	Total international	93.0		44.3		35.2		60.6		233.1		Total international	105.8		42.1		40.2		188.1
Total revenues	Total revenues	$	719.3	$	155.8	$	65.8	$	88.1	$	1,029.0	Total revenues	$	937.3	$	168.9	$	71.6	$	1,177.8

		Three Months Ended March 31, 2020											Three Months Ended June 30, 2020
(in millions)	(in millions)	CCM		CIT		CFT		CBF		Total		(in millions)	CCM		CIT		CFT		Total
United States	United States	$	596.9	$	161.4	$	28.3	$	30.7	$	817.3	United States	$	657.2	$	129.3	$	20.7	$	807.2
International:	International:											International:
Europe	Europe	51.1		19.3		10.4		19.4		100.2		Europe	51.3		20.7		6.4		78.4
Asia	Asia	3.3		18.4		16.9		15.1		53.7		Asia	4.8		18.6		17.4		40.8
North America (excluding U.S.)	North America (excluding U.S.)	19.6		12.4		2.0		2.9		36.9		North America (excluding U.S.)	18.2		6.1		1.6		25.9
Middle East and Africa	Middle East and Africa	3.9		4.9		0.5		0.2		9.5		Middle East and Africa	2.4		2.4		0.2		5.0
Other	Other	1.6		8.1		0.2		2.7		12.6		Other	1.0		6.9		0.2		8.1
Total international	Total international	79.5		63.1		30.0		40.3		212.9		Total international	77.7		54.7		25.8		158.2
Total revenues	Total revenues	$	676.4	$	224.5	$	58.3	$	71.0	$	1,030.2	Total revenues	$	734.9	$	184.0	$	46.5	$	965.4


	Six Months Ended June 30, 2021
(in millions)	CCM		CIT		CFT		Total
United States	$	1,457.8	$	238.3	$	62.0	$	1,758.1
International:
Europe	124.7		30.7		26.1		181.5
Asia	10.1		39.5		41.3		90.9
North America (excluding U.S.)	54.8		7.0		5.3		67.1
Middle East and Africa	7.6		5.0		0.8		13.4
Other	1.6		4.2		1.9		7.7
Total international	198.8		86.4		75.4		360.6
Total revenues	$	1,656.6	$	324.7	$	137.4	$	2,118.7

	Six Months Ended June 30, 2020
(in millions)	CCM		CIT		CFT		Total
United States	$	1,254.1	$	290.7	$	49.0	$	1,593.8
International:
Europe	102.4		40.0		16.8		159.2
Asia	8.1		37.0		34.3		79.4
North America (excluding U.S.)	37.8		18.5		3.6		59.9
Middle East and Africa	6.3		7.3		0.7		14.3
Other	2.6		15.0		0.4		18.0
Total international	157.2		117.8		55.8		330.8
Total revenues	$	1,411.3	$	408.5	$	104.8	$	1,924.6

Note 6—7—Stock-Based Compensation

Stock-based compensation cost by award type follows:


(in millions)	(in millions)	Three Months Ended March 31,				(in millions)		Three Months Ended June 30,								Six Months Ended June 30,
		2021		2020			(in millions)			2021				2020				2021				2020
Stock option awards	Stock option awards	$	3.8	$	3.2					$	2.3			$	2.3			$	5.9			$	5.5
Restricted stock awards	Restricted stock awards	2.2		2.1					Restricted stock awards			1.7				1.8				3.9				3.8
Performance share awards	Performance share awards	2.5		2.1					Performance share awards			1.8				1.5				4.3				3.5
Restricted stock units	Restricted stock units	0		1.4					Restricted stock units			0				0				0				1.4
Stock appreciation rights	Stock appreciation rights	3.9		(3.6)					Stock appreciation rights			5.9				(0.4)				9.0				(3.4)
Total stock-based compensation cost incurred	Total stock-based compensation cost incurred	12.4		5.2					Total stock-based compensation cost incurred			11.7				5.2				23.1				10.8
Capitalized (cost) credit during the period	Capitalized (cost) credit during the period	(4.3)		3.3					Capitalized (cost) credit during the period			(5.9)				0.2				(9.3)				2.9
Amortization of capitalized cost during the period		6.8		4.2
Amortization of capitalized cost (credit) during the period									Amortization of capitalized cost (credit) during the period			8.8				(3.3)				14.3				0.2
Total stock-based compensation expense	Total stock-based compensation expense	$	14.9	$	12.7				Total stock-based compensation expense			$	14.6			$	2.1			$	28.1			$	13.9

Note 7—8—Exit and Disposal and Other Restructuring Activities

The Company has undertaken operational restructuring and other cost reduction actions to streamline processes and manage costs throughout various departments. These actions resulted in exit, disposal and employee termination benefit costs, primarily resulting from planned reductions in workforce, facility consolidation and relocation, and lease termination costs. The primary actions are discussed below by operating segment.

1115

CIT

During the third quarter of 2020, the Company initiated plans to exit its manufacturing operations in Kent, Washington, as a result of market declines from the coronavirus pandemic ("COVID-19 pandemic"). Select operations ~~will be~~are being relocated to existing facilities primarily in North America. The project is estimated to take 12a remaining 4 to 188 months to complete. During the three and six months ended ~~March 31,~~June 30, 2021, exit and disposal costs totaled ~~$0.6~~$4.5 million and $5.1 million, respectively, primarily for employee termination benefit costs. Total exit and disposal costs are expected to approximate ~~$14.7~~$14.2 million, with approximately ~~$7.5~~$2.5 million costs remaining to be incurred, primarily in 2021.

During the second quarter of 2020, the Company initiated and substantially completed plans to exit its manufacturing operations in Mobile, Alabama, and relocate the majority of those operations to its existing manufacturing facility in Franklin, Wisconsin. During the three and six months ended June 30, 2020, exit and disposal costs totaled $1.4 million, primarily for employee termination benefit costs and the impairment of certain assets.

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

Other Actions

The Company implemented restructuring activities to reduce its overall headcount as a result of general market declines resulting from the effects of the COVID-19 pandemic. These actions resulted in severance expense of ~~$0.7~~$2.1 million and $2.8 million at CIT during the three and six months ended ~~March 31, 2021.~~months ended June 30, 2021, respectively.

During the three and six months ended June 30, 2020, these actions resulted in severance payments of $2.8 million and $2.1 million at CIT and CFT, respectively. CCM incurred $0.2 million and $0.3 million in severance payments for the three and six months ended June 30, 2020, respectively.

Consolidated Summary

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


(in millions)	(in millions)	Three Months Ended March 31,			(in millions)			Three Months Ended June 30,				Six Months Ended June 30,
			2021			2020			(in millions)	2021		2020		2021		2020
Employee severance and benefit arrangements	Employee severance and benefit arrangements		$	1.9		$	1.9			$	3.2	$	5.7	$	5.1	$	6.0
Relocation costs	Relocation costs		0.1			0.2			Relocation costs	0.2		0.1		0.3		0.3
Accelerated depreciation and impairments	Accelerated depreciation and impairments		0			1.2			Accelerated depreciation and impairments	2.1		0.4		2.1		0.4
Facility cleanup costs	Facility cleanup costs		(1.0)			0.8			Facility cleanup costs	0		0		(1.0)		0.8

Other restructuring costs	Other restructuring costs		0.4			0.7			Other restructuring costs	1.1		0.7		1.5		1.4
Total exit and disposal costs	Total exit and disposal costs		$	1.4		$	4.8		Total exit and disposal costs	$	6.6	$	6.9	$	8.0	$	8.9

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


(in millions)	(in millions)	Three Months Ended March 31,			(in millions)			Three Months Ended June 30,				Six Months Ended June 30,
			2021			2020			(in millions)	2021		2020		2021		2020
Carlisle Interconnect Technologies	Carlisle Interconnect Technologies		$	1.3		$	1.9			$	6.6	$	4.6	$	7.9	$	6.5
Carlisle Fluid Technologies	Carlisle Fluid Technologies		0.1			0			Carlisle Fluid Technologies	0		2.1		0.1		2.1
Carlisle Brake & Friction			0			2.8
Carlisle Construction Materials	Carlisle Construction Materials		0			0.1			Carlisle Construction Materials	0		0.2		0		0.3

Total exit and disposal costs	Total exit and disposal costs		$	1.4		$	4.8		Total exit and disposal costs	$	6.6	$	6.9	$	8.0	$	8.9

The Company's exit and disposal costs by financial statement line item follows:


(in millions)	(in millions)	Three Months Ended March 31,			(in millions)			Three Months Ended June 30,				Six Months Ended June 30,
			2021			2020			(in millions)	2021		2020		2021		2020
Cost of goods sold	Cost of goods sold		$	0.8		$	3.0			$	3.6	$	4.0	$	4.4	$	5.7
Selling and administrative expenses	Selling and administrative expenses		0.6			1.6			Selling and administrative expenses	2.8		2.7		3.4		2.8

Research and development expenses									Research and development expenses	0.2		0		0.2		0
Other operating expense, net	Other operating expense, net		0			0.2			Other operating expense, net	0		0.2		0		0.4
Total exit and disposal costs	Total exit and disposal costs		$	1.4		$	4.8		Total exit and disposal costs	$	6.6	$	6.9	$	8.0	$	8.9

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

(in millions)

Total

Balance as of December 31, 2020

~~6.7~~6.1

Charges

~~1.4~~8.0

Cash payments

~~(0.7)~~(7.3)

Balance as of ~~March 31,~~June 30, 2021

~~7.4~~6.8

The liability of ~~$7.4~~$6.8 million primarily relates to employee severance and benefit arrangements and is included in accrued and other current liabilities.

Note 8—9—Income Taxes

The effective income tax rate on continuing operations for the ~~three~~six months ended ~~March 31,~~June 30, 2021, was ~~22.0%~~18.8%. The year-to-date provision for income taxes included taxes on earnings at an anticipated rate of ~~24.5%~~24.4% and a tax impact of ~~$1.7~~$9.8 million related to discrete activity. The year-to-date net discrete tax benefit relates primarily to a reduction of prior year tax liabilities and excess tax benefits related to employee stock compensation.

The effective income tax rate on continuing operations for the ~~three~~six months ended ~~March 31,~~June 30, 2020, was ~~18.9%~~21.1%.

Note 9—10—Inventories, net


(in millions)	(in millions)	March 31, 2021		December 31, 2020		(in millions)	June 30, 2021		December 31, 2020
Raw materials	Raw materials	$	197.1	$	193.1	Raw materials	$	200.4	$	168.2
Work-in-process	Work-in-process	92.5		85.5		Work-in-process	75.1		67.4
Finished goods	Finished goods	281.4		266.0		Finished goods	218.4		225.8
Reserves	Reserves	(42.8)		(41.1)		Reserves	(31.3)		(28.7)
Inventories, net	Inventories, net	$	528.2	$	503.5	Inventories, net	$	462.6	$	432.7

Note ~~10—~~11—Goodwill and Other Intangible Assets, net

Goodwill

The changes in the carrying amount of goodwill, net by segment follows:


(in millions)	(in millions)	CCM		CIT		CFT		CBF(1)		Total		(in millions)	CCM		CIT		CFT		Total
Balance as of December 31, 2020	Balance as of December 31, 2020	$	613.0	$	835.6	$	193.1	$	96.5	$	1,738.2	Balance as of December 31, 2020	$	613.0	$	835.6	$	193.1	$	1,641.7

Measurement period adjustments~~(2)~~(1)	Measurement period adjustments~~(2)~~(1)	0		0		(0.2)		0		(0.2)		Measurement period adjustments~~(2)~~(1)	0		0		(0.2)		(0.2)
Currency translation and other	Currency translation and other	(1.5)		(0.4)		(0.6)		0		(2.5)		Currency translation and other	(0.9)		0.1		(0.5)		(1.3)
Balance as of March 31, 2021		$	611.5	$	835.2	$	192.3	$	96.5	$	1,735.5
Balance as of June 30, 2021												Balance as of June 30, 2021	$	612.1	$	835.7	$	192.4	$	1,640.2

(1)~~CBF goodwill, net is presented net of accumulated impairment losses of $130.0 million recorded in 2016. No other segments have incurred impairment losses.~~

~~(2)~~Refer to Note 3 for further information on goodwill resulting from recent acquisitions.

Other Intangible Assets, net

A summary of the Company's other intangible assets, net follows:


		March 31, 2021						December 31, 2020							June 30, 2021						December 31, 2020
(in millions)	(in millions)	Acquired Cost		Accumulated Amortization		Net Book Value		Acquired Cost		Accumulated Amortization		Net Book Value		(in millions)	Acquired Cost		Accumulated Amortization		Net Book Value		Acquired Cost		Accumulated Amortization		Net Book Value
Assets subject to amortization:	Assets subject to amortization:													Assets subject to amortization:
Customer relationships	Customer relationships	$	1,058.0	$	(454.3)	$	603.7	$	1,060.6	$	(436.4)	$	624.2	Customer relationships	$	998.9	$	(429.4)	$	569.5	$	1,000.7	$	(393.7)	$	607.0
Technology and intellectual property	Technology and intellectual property	311.6		(215.6)		96.0		313.6		(208.9)		104.7		Technology and intellectual property	261.2		(186.0)		75.2		263.0		(172.6)		90.4
Trade names and other	Trade names and other	118.5		(55.2)		63.3		117.7		(50.4)		67.3		Trade names and other	119.9		(56.8)		63.1		115.6		(48.7)		66.9
Assets not subject to amortization:	Assets not subject to amortization:													Assets not subject to amortization:
Trade names	Trade names	237.8		—		237.8		238.6		—		238.6		Trade names	196.1		—		196.1		196.6		—		196.6
Other intangible assets, net	Other intangible assets, net	$	1,725.9	$	(725.1)	$	1,000.8	$	1,730.5	$	(695.7)	$	1,034.8	Other intangible assets, net	$	1,576.1	$	(672.2)	$	903.9	$	1,575.9	$	(615.0)	$	960.9

The net book values of other intangible assets, net by reportable segment follows:


(in millions)	(in millions)	March 31, 2021		December 31, 2020		(in millions)	June 30, 2021		December 31, 2020
Carlisle Construction Materials	Carlisle Construction Materials	$	288.0	$	300.9	Carlisle Construction Materials	$	279.2	$	300.9
Carlisle Interconnect Technologies	Carlisle Interconnect Technologies	372.4		384.8		Carlisle Interconnect Technologies	360.4		384.8
Carlisle Fluid Technologies	Carlisle Fluid Technologies	256.0		261.3		Carlisle Fluid Technologies	252.6		261.3
Carlisle Brake & Friction		72.4		73.9
Corporate	Corporate	12.0		13.9		Corporate	11.7		13.9
Total	Total	$	1,000.8	$	1,034.8	Total	$	903.9	$	960.9

Note ~~11—~~12—Long-term Debt


(in millions)	(in millions)					Fair Value(1)				(in millions)					Fair Value(1)
		March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020			June 30, 2021		December 31, 2020		June 30, 2021		December 31, 2020
2.75% Notes due 2030	2.75% Notes due 2030	$	750.0	$	750.0	$	754.8	$	804.8	2.75% Notes due 2030	$	750.0	$	750.0	$	780.3	$	804.8
3.75% Notes due 2027	3.75% Notes due 2027	600.0		600.0		666.2		679.3		3.75% Notes due 2027	600.0		600.0		664.1		679.3
3.5% Notes due 2024	3.5% Notes due 2024	400.0		400.0		432.3		438.3		3.5% Notes due 2024	400.0		400.0		428.5		438.3
3.75% Notes due 2022	3.75% Notes due 2022	350.0		350.0		364.7		366.9		3.75% Notes due 2022	350.0		350.0		364.0		366.9

Unamortized discount, debt issuance costs and other	Unamortized discount, debt issuance costs and other	(17.8)		(18.7)						Unamortized discount, debt issuance costs and other	(18.4)		(18.7)
Total long term-debt	Total long term-debt	2,082.2		2,081.3						Total long term-debt	2,081.6		2,081.3
Less: current portion of debt	Less: current portion of debt	1.2		1.1						Less: current portion of debt	1.2		1.1
Long term-debt, less current portion	Long term-debt, less current portion	$	2,081.0	$	2,080.2					Long term-debt, less current portion	$	2,080.4	$	2,080.2

(1)The fair value is estimated based on current yield rates plus the Company’s estimated credit spread available for financings with similar terms and maturities. Based on these inputs, the debt instruments are classified as Level 2 in the fair value hierarchy.

Revolving Credit Facility (the “Facility”)

During the ~~three~~six months ended ~~March 31,~~June 30, 2021, there were no borrowings or repayments under the Facility. As of ~~March 31,~~June 30, 2021 and December 31, 2020, the Facility had 0 outstanding balance and $1.0 billion available for use.

Covenants and Limitations

Under the Company’s debt and credit facilities, the Company is required to meet various covenants and limitations, including limitations on certain leverage ratios, interest coverage and limits on outstanding debt balances held by certain subsidiaries. The Company was in compliance with all covenants and limitations as of ~~March 31,~~June 30, 2021 and December 31, 2020.

Letters of Credit and Guarantee

During the normal course of business, the Company enters into commitments in the form of letters of credit and bank guarantees to provide its own financial and performance assurance to third parties. The Company has not issued any guarantees on behalf of any third parties. As of ~~March 31,~~June 30, 2021 and December 31, 2020, the Company had ~~$27.1~~$26.6 million and $25.2 million, in letters of credit and bank guarantees outstanding, respectively. The Company has multiple arrangements to obtain letters of credit, which include an agreement with unspecified availability and separate agreements for up to $80.0 million in letters of credit, of which ~~$53.0~~$53.4 million was available for use as of ~~March 31,~~June 30, 2021.

Note ~~12—~~13—Employee Benefit Plans

Defined Benefit Plans

The Company recognizes net periodic benefit cost based on the actuarial analysis performed at the previous year end, adjusted if certain significant events occur during the year.

The components of net periodic benefit cost follows:


		Three Months Ended March 31,				Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	(in millions)	2021		2020			(in millions)	2021		2020		2021		2020
Service cost	Service cost	$	0.7	$	0.7		Service cost	$	0.7	$	0.7	$	1.4	$	1.4
Interest cost	Interest cost	0.7		1.1			Interest cost	0.7		1.2		1.4		2.3
Expected return on plan assets	Expected return on plan assets	(2.4)		(2.4)			Expected return on plan assets	(2.5)		(2.5)		(4.9)		(4.9)
Amortization of unrecognized loss(1)	Amortization of unrecognized loss(1)	1.6		1.4			Amortization of unrecognized loss(1)	1.6		1.3		3.2		2.7
Settlement expense	Settlement expense	0.4		0			Settlement expense	0.5		0		0.9		0
Net periodic benefit cost	Net periodic benefit cost	$	1.0	$	0.8		Net periodic benefit cost	$	1.0	$	0.7	$	2.0	$	1.5

(1)Includes amortization of unrecognized actuarial (gain) loss and prior service credits and excludes provision for income tax of $(0.4) million and ~~$(0.3)~~$(0.8) million for the three and six months ended ~~March 31,~~June 30, 2021, respectively, and $(0.3) million and $(0.6) million for the three and six months ended June 30, 2020, respectively.

The components of net periodic benefit cost, other than the service cost component, are included in other non-operating expense (income), net.

Note ~~13—~~14—Standard Product Warranties

The Company offers various standard warranty programs on its products, primarily for certain installed roofing systems, high-performance cables and assemblies and fluid ~~technologies and braking products.~~technologies. The Company’s liability for such warranty programs is included in accrued and other current liabilities. The change in standard product warranty liabilities for the ~~three~~six months ended ~~March 31,~~June 30, follows:


(in millions)	(in millions)	2021		2020		(in millions)	2021		2020
Balance as of January 1	Balance as of January 1	$	30.5	$	29.2	Balance as of January 1	$	30.0	$	28.7
Provision	Provision	0.2		3.8		Provision	0.1		7.2

Claims	Claims	(0.4)		(3.7)		Claims	(2.3)		(6.6)

Foreign exchange	Foreign exchange	(0.3)		(0.2)		Foreign exchange	(0.2)		0
Balance as of March 31		$	30.0	$	29.1
Balance as of June 30						Balance as of June 30	$	27.6	$	29.3

Note ~~14—~~15—Financial Instruments

Foreign Currency Forward Contracts

The Company uses foreign currency forward contracts to hedge a portion of its foreign currency exchange rate exposure to forecasted foreign currency denominated cash flows. These instruments are not held for speculative or trading purposes.

A summary of the Company's designated and non-designated hedges follows:


		March 31, 2021				December 31, 2020					June 30, 2021				December 31, 2020
(in millions)	(in millions)	Fair Value(1)		Notional Value		Fair Value(1)		Notional Value		(in millions)	Fair Value(1)		Notional Value		Fair Value(1)		Notional Value
Designated hedges	Designated hedges	$	2.6	$	107.3	$	5.0	$	93.5	Designated hedges	$	2.5	$	76.0	$	5.0	$	93.5
Non-designated hedges	Non-designated hedges	(0.3)		49.3		0.2		65.4		Non-designated hedges	0.5		53.9		0.2		63.7

(1)The fair value of foreign currency forward contracts is included in other current assets. The fair value was estimated using observable market inputs such as forward and spot prices of the underlying exchange rate pair. Based on these inputs, derivative assets and liabilities are classified as Level 2 in the fair value hierarchy.

Designated Hedges

For instruments that are designated and qualify as cash flow hedges, the Company had foreign currency forward contracts with maturities less than one year. The changes in the fair value of the contracts are recorded in accumulated other comprehensive income (loss) and recognized in the same line item as the impact of the hedged item, revenues or cost of sales, when the underlying forecasted transaction impacts earnings. The change in accumulated other comprehensive income (loss) related to foreign currency cash flow hedges was immaterial for the three and six months ended ~~March 31,~~June 30, 2021 and 2020. Gains and losses on the contracts representing hedge components excluded from the assessment of hedge effectiveness are recognized in the same line item as the hedged item, revenues or cost of sales, currently.

Non-Designated Hedges

For instruments that are not designated as a cash flow hedge, the Company had foreign exchange contracts with maturities less than one year. The unrealized gains and losses resulting from these contracts were immaterial for the three and six months ended ~~March 31,~~June 30, 2021 and 2020, and are recognized in other non-operating expense (income), net and partially offset corresponding foreign exchange gains and losses on these balances.

Rabbi Trust

The Company has established a Rabbi Trust to provide for a degree of financial security to cover its obligations with its deferred compensation plan. Contributions to the Rabbi Trust by the Company are made at the discretion of management and generally are made in cash and invested in money-market funds. The Company consolidates the Rabbi Trust and therefore includes the investments in its Condensed Consolidated Balance Sheets. As of ~~March 31,~~June 30, 2021 and December 31, 2020, the Company had ~~$6.2~~$5.7 million and $6.6 million of cash, respectively, and ~~$7.9~~$7.8 million and $7.7 million of short-term investments, respectively. The short-term investments are classified as trading securities and are measured at fair value using quoted market prices in active markets (i.e., Level 1 measurements) with changes in fair value recorded in net income and the associated cash flows presented as operating cash flows.

Investment Securities

In accordance with its investment policy, the Company invests its excess cash from time-to-time in investment grade bonds and other securities to achieve higher yields. As of ~~March 31,~~June 30, 2021, the Company had $10.2 million of investment grade bonds, with maturities less than one year. The investment grade bonds are classified as available for sale and measured at fair value using quoted market prices in active markets (i.e., Level 1 measurements) with changes in fair value recorded in accumulated comprehensive income, until realized, and the associated cash flows presented as investing cash flows. The Company did 0t have any investment securities as of December 31, 2020.

Other Financial Instruments

Other financial instruments include cash and cash equivalents, accounts receivable, net, accounts payable, accrued expenses and long-term debt. The carrying value for cash and cash equivalents, accounts receivable, net, accounts payable and accrued expenses approximates fair value because of their short-term nature and generally negligible credit losses (refer to Note 1112 for the fair value of long-term debt).

Note ~~15—~~16—Commitments and Contingencies

Litigation

Over the years, the Company has been named as a defendant, along with numerous other defendants, in lawsuits in various courts in which plaintiffs have alleged injury due to exposure to asbestos-containing friction products produced and sold predominantly by the Company’s discontinued Motion Control business between the late-1940s and the mid-1980s. The Company has been subject to liabilities for indemnity and defense costs associated with these lawsuits.

The Company has recorded a liability for estimated indemnity costs associated with pending and future asbestos claims. As of ~~March 31,~~June 30, 2021, the Company believes that its accrual for these costs is not material to the Company's financial position, results of operations, or operating cash flows.

The Company recognizes expenses for defense costs associated with asbestos claims during the periods in which they are incurred. Refer to the 2020 Annual Report on Form 10-K for the Company's accounting policy related to litigation defense costs.

The Company currently maintains insurance coverage with respect to asbestos-related claims and associated defense costs. The Company records the insurance coverage as a long-term receivable in an amount it reasonably estimates is probable of recovery for pending and future asbestos-related indemnity claims. Since the Company’s insurance policies contain various coverage exclusions, limits of coverage and self-insured retentions and may be subject to insurance coverage disputes, the Company may recognize expenses for indemnity and defense costs in particular periods if and when it becomes probable that such costs will not be covered by insurance.

The Company is also involved in various other legal actions and proceedings arising in the ordinary course of business. In the opinion of management, the ultimate outcomes of such actions and proceedings, either individually or in the aggregate, are not expected to have a material adverse effect on the Company’s financial position, results of operations, or operating cash flows.

Note 17—Subsequent Events

On July 19, 2021 the Company announced that it has entered into a definitive agreement to acquire ASP Henry Holdings, Inc. (“Henry”), a leading provider of building envelope systems, from American Securities LLC. Under the terms of the agreement, Carlisle will purchase Henry for $1.575 billion in cash. The acquisition, which is subject to customary closing conditions, is expected to close in the third quarter of 2021. The results of operations of the acquired business will be reported within the CCM segment upon the close of the acquisition.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Carlisle Companies Incorporated (“Carlisle”, the “Company”, “we”, “us” or “our”) is a ~~diversified, global portfolio~~leading supplier of ~~niche~~innovative building envelope products and energy-efficient solutions for customers creating sustainable buildings of the future. Through its Carlisle Construction Materials ("CCM") business and family of leading brands, Carlisle delivers innovative, labor-reducing and ~~businesses that manufactures highly engineered~~environmentally responsible products and solutions to customers across the planet through the Carlisle Experience. Over the life of a building, Carlisle’s products help drive lower greenhouse gas emissions, improve energy savings for ~~its customers.~~building owners and operators, and increase a building’s resiliency to the elements. Driven by our strategic plan, Vision 2025, Carlisle is committed to generating superior shareholder returns and ~~stakeholder returns by combining an entrepreneurial management style under~~maintaining a ~~center-led approach, and~~ balanced capital deployment ~~all with~~approach, including investments in our businesses, strategic acquisitions, share repurchases and continued dividend increases. Carlisle also is a ~~culture~~leading provider of ~~responsible stewardship~~products to the aerospace, medical technologies and ~~continuous improvement as embodied in the~~general industrial markets through its Carlisle ~~Operating System~~Interconnect Technologies ("~~COS"~~CIT"). and Carlisle Fluid Technologies ("CFT") business segments. Management’s Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") is designed to provide a reader of our financial statements with a narrative from the perspective of Company management. All references to "Notes" refer to our Notes to Condensed Consolidated Financial Statements in Item 1 of this Quarterly Report on Form 10-Q.

Executive Overview

~~Reflecting on~~Carlisle's performance continues to strengthen as we accelerate into the ~~past twelve months of uncertainty,~~recovery. Given our adherence to strict safety measures across our global footprint, we ~~take great pride~~are happy to report Carlisle's COVID-19 related infection rates approached zero in ~~how~~ the ~~Carlisle team handled the immediate threats born out of the COVID-19 pandemic, monitoring that strict health and safety protocols were in place and followed, which has led to~~second quarter. Over a low infection rate at Carlisle facilities across the globe. This reaction enabled an early, proactive focus on positioning our business for an economic rebound, with Vision 2025 providing the clear direction and consistency of mission to guide our efforts. One year removed from the pandemic's initial impact, we ~~believe we~~ are ~~a stronger company and~~ well positioned to meet ~~our~~Carlisle's center-led Vision 2025 objectives, supported by confidence in the fundamentals of our businesses, positive long-term trends, and ~~our~~a commitment to providing our customers superior service through the Carlisle Experience.

AsOn July 19, 2021, we announced the acquisition of ASP Henry Holdings, Inc. (“Henry”), a ~~result~~best-in-class provider of building envelope systems that control the ~~strength in our~~flow of water, vapor and energy to optimize building sustainability. Henry will augment Carlisle Construction ~~Materials~~Materials' ("CCM")~~, Carlisle Fluid Technologies ("CFT"),~~ growth and innovation efforts in commercial construction and increases its presence in residential construction in North America.

On May 25, 2021, we announced the sale of Carlisle Brake & Friction ("CBF") ~~businesses,~~to certain direct and indirect wholly-owned subsidiaries of BRWS Parent LLC, a portfolio company of One Rock Capital Partners (“CentroMotion”), in a transaction structured to provide Carlisle the opportunity to receive $375 million, including receipt of $250 million cash at closing, subject to certain adjustments, and the right to receive an additional post-closing cash payment of up to $125 million based on CBF’s achievement of certain performance targets for calendar year 2021. We expect the transaction, which is subject to customary closing conditions, to close in the third quarter of 2021. The sale of CBF is consistent with our ~~consolidated revenue was relatively flat year-over-year despite a tough comparison and well publicized impact~~portfolio optimization strategy as contemplated in Vision 2025.

CCM's performance continues to confirm our conviction that Carlisle's strategic pivot to our highest-returning business is the correct path. Carlisle's positive second quarter results were driven by CCM, which continues to benefit from the strong re-roofing cycle in the United States. CCM is committed to delivering the full value of the ~~COVID-19 pandemic on~~Carlisle Experience and being the ~~aerospace industry that~~manufacturer of choice with second-to-none reliability for all of our channel partners. These efforts were clearly demonstrated in the second quarter with solid execution meeting unusually strong demand despite the significant supply constraints. CCM continues to ~~weigh on Carlisle Interconnect Technologies ("CIT") results. The first~~operate with agility and precision, adjusting quickly to the downturn in 2020, and just as quickly adjusting to the upturn in 2021.

While CCM generated most of our earnings in the second quarter of 2021, ~~demonstrated yet again Carlisle's ability~~our other businesses exhibited continued progress. Carlisle Interconnect Technologies' ("CIT") results were in line with subdued expectations. Given expanding global vaccine rollout, increased domestic travel, European countries opening their borders to ~~navigate varying economic cycles while delivering strong financial performance. We continued~~American and other vaccinated travelers, and improvements in CIT's order book, we continue to believe CIT is positioned for sequential improvement going forward. Taken together with the improving backlog in our medical technologies product lines, we are optimistic CIT will return to growth in the second half of 2021.

Carlisle Fluid Technologies ("CFT") delivered improved revenue and operating income performance in the quarter driven by a commitment to new product introductions, price discipline and integrating our newer platforms. With end markets strengthening, the team continues to execute on Vision 2025 initiatives and focus on enhancing our long-term strategies, including: maintaining the highest standards in providing the Carlisle Experience to our customers, investing in high-return projects to drive organic growth across our core platforms, working an active pipeline of acquisition targets, returning excess capital to shareholders through share repurchases and dividends, continuing on our environmental, social and governance ("ESG") journey, and demonstrating the exceptional and sustainable earnings power of the Carlisle business model.customers' experience.

We remain balanced in our capital deployment approach by investing in our businesses, repurchasing ~~$150.0~~$265.6 million of shares and maintaining our cash dividend payments of ~~$28.4~~$56.0 million during the ~~quarter.~~first six months. As of the

end of the ~~first~~second quarter, we have a strong cash position of ~~$767.2~~$713.3 million with $1.0 billion undrawn on our revolving credit facility (the "Facility").

Vision 2025 continues to provide Carlisle clear direction. We have stayed the course on our strategy throughout the past year and a half and have regained positive momentum across all segments. ~~Additionally,~~We believe we ~~continue to pursue acquisition opportunities, and we expect to be active in augmenting our core businesses with synergistic acquisitions. We~~ are well positioned to accelerate through the ~~recovery.~~recovery and beyond.

Summary of Financial Results


		Three Months Ended March 31,						Three Months Ended June 30,					Six Months Ended June 30,
(in millions, except per share amounts)	(in millions, except per share amounts)		2021			2020			(in millions, except per share amounts)	2021			2020			2021			2020
Revenues	Revenues		$	1,029.0		$	1,030.2		Revenues	$	1,177.8		$	965.4		$	2,118.7		$	1,924.6
Operating income	Operating income		$	89.5		$	102.7		Operating income	$	133.8		$	114.5		$	218.5		$	221.7
Operating margin percentage	Operating margin percentage		8.7		%	10.0		%	Operating margin percentage	11.4		%	11.9		%	10.3		%	11.5		%
Net income			$	52.2		$	61.8

Diluted earnings per share attributable to common shares			$	0.97		$	1.09

Income from continuing operations									Income from continuing operations	$	94.1		$	76.0		$	143.2		$	140.8
Income (loss) from discontinued operations									Income (loss) from discontinued operations	$	5.2		$	(0.6)		$	8.3		$	(3.6)
Diluted earnings per share attributable to common shares:									Diluted earnings per share attributable to common shares:
Income from continuing operations									Income from continuing operations	$	1.77		$	1.37		$	2.68		$	2.52
Income (loss) from discontinued operations									Income (loss) from discontinued operations	$	0.10		$	(0.01)		$	0.16		$	(0.07)

Non-comparable items(1)	Non-comparable items(1)		$	8.3		$	16.0		Non-comparable items(1)	$	9.5		$	14.2		$	16.9		$	27.4

(1)Non-comparable items include items that, by their nature, tend to obscure the Company’s core operating results due to potential variability across periods based on the timing, frequency and magnitude of such items. Refer to Non-GAAP Financial Measures in this MD&A for a detailed reconciliation of these items.

Revenues ~~were relatively flat~~increased in the second quarter and first ~~quarter~~six months of 2021 primarily reflecting higher volumes and price realization in our CCM and CFT segments and favorable foreign currency impacts, partially offset by lower volumes in our CIT segment, which has continued to be impacted by the prolonged aerospace ~~decline, offset by higher volumes in our CCM, CBF and CFT segments and favorable foreign currency impacts.~~decline.

The decrease in operating ~~income~~margin percentage in the second quarter and first ~~quarter~~six months of 2021 primarily reflected raw material and wage inflation across all segments, and unfavorable mix at CIT. The decrease in operating income was partially offset by higher volumes, price realization and savings from ~~COS and lower travel costs.~~the Carlisle Operating System ("COS").

Diluted earnings per share ~~decreased~~from continuing operations increased primarily due to ~~the above~~improved operating income performance ($~~0.18~~0.26 per share in the second quarter of 2021), a lower effective tax rate ($0.13 per share in the second quarter of 2021 and $0.10 per share in the first six months of 2021), and reduced average shares outstanding ($0.07 per share in the second quarter of ~~2021)~~2021 and ~~a higher effective tax rate ($0.03~~$0.12 per share in the first ~~quarter of 2021). The decrease was partially offset by reduced average shares outstanding ($0.05 per share in the first quarter~~six months of 2021) resulting from purchases under our share repurchase program. The increase was partially offset by lower operating income performance in the first six months of 2021 of $0.04.

We generated ~~$67.6~~$171.5 million in operating cash flow in the first ~~three~~six months of 2021, and utilized cash on hand and cash provided by operations to return capital to shareholders through dividends and share repurchases, and to fund capital expenditures.

Consolidated Results of Operations

Revenues

(in millions) 2021 2020 Change % Acquisition Effect Price / Volume Effect Exchange Rate Effect
Three months ended March 31 $ 1,029.0 $ 1,030.2 $ (1.2) (0.1) % 0.4 % (1.4) % 0.9 %



(in millions)	2021		2020		Change		%		Acquisition Effect		Price / Volume Effect		Exchange Rate Effect
Three months ended June 30	$	1,177.8	$	965.4	$	212.4	22.0	%	0.4	%	20.7	%	0.9	%
Six months ended June 30	$	2,118.7	$	1,924.6	$	194.1	10.1	%	0.4	%	8.9	%	0.8	%

Revenues ~~were relatively flat~~increased in the second quarter and first ~~quarter~~six months of 2021 primarily reflecting higher sales volumes and price realization in our CCM and CFT segments across all markets in which they operate and favorable foreign currency impacts, partially offset by lower CIT volumes as a result of the prolonged aerospace ~~decline, offset by higher sales volumes in our CCM, CBF and CFT segments across most markets in which they operate and favorable foreign currency impacts.~~decline.

Gross Margin

(in millions) Three Months Ended March 31,
2021 2020 Change %
Gross margin $ 261.7 $ 278.4 $ (16.7) (6.0) %
Gross margin percentage 25.4 % 27.0 %
Depreciation and amortization $ 28.4 $ 31.5


(in millions)	Three Months Ended June 30,										Six Months Ended June 30,
	2021			2020			Change		%		2021			2020			Change		%
Gross margin	$	307.7		$	270.1		$	37.6	13.9	%	$	552.6		$	539.5		$	13.1	2.4	%
Gross margin percentage	26.1		%	28.0		%					26.1		%	28.0		%
Depreciation and amortization	$	24.1		$	26.2						$	48.7		$	53.0

Gross margin percentage (gross margin expressed as a percentage of revenues) declined in the second quarter and first ~~quarter~~six months of 2021, driven by raw material and wage inflation, and unfavorable mix at our CIT segment, partially offset by savings from COS. Also included in cost of goods sold were exit and disposal costs totaling ~~$0.8~~$3.6 million for the second quarter and $4.4 million in the first ~~quarter~~six months of 2021, primarily at CIT, attributable to our restructuring initiatives, compared with ~~$3.0~~$4.0 million for the second quarter and $5.7 million for the first ~~quarter~~six months of 2020. Refer to Note 78 for further information on exit and disposal activities.

Selling and Administrative Expenses

(in millions) Three Months Ended March 31,
2021 2020 Change %
Selling and administrative expenses $ 159.8 $ 161.9 $ (2.1) (1.3) %
As a percentage of revenues 15.5 % 15.7 %
Depreciation and amortization $ 25.3 $ 24.7


(in millions)	Three Months Ended June 30,										Six Months Ended June 30,
	2021			2020			Change		%		2021			2020			Change		%
Selling and administrative expenses	$	161.3		$	144.6		$	16.7	11.5	%	$	312.1		$	295.5		$	16.6	5.6	%
As a percentage of revenues	13.7		%	15.0		%					14.7		%	15.4		%
Depreciation and amortization	$	25.0		$	24.3						$	49.2		$	47.9

The ~~decrease~~increase in selling and administrative expenses in the second quarter and first ~~quarter~~six months of 2021 primarily reflected ~~lower travel~~higher medical costs, ~~partially offset by~~ higher ~~medical~~incentive compensation costs and wage inflation. Also included in selling and administrative expenses were exit and disposal costs totaling ~~$0.6~~$2.8 million for the second quarter and $3.4 million for the first ~~quarter~~six months of 2021, primarily at CIT, attributable to our restructuring initiatives, compared with ~~$1.6~~$2.7 million for the second quarter and $2.8 million for the first ~~quarter~~six months of 2020. Refer to Note 78 for further information on exit and disposal activities.

Research and Development Expenses

(in millions) Three Months Ended March 31,
2021 2020 Change %
Research and development expenses $ 12.6 $ 14.4 $ (1.8) (12.5) %
As a percentage of revenues 1.2 % 1.4 %
Depreciation and amortization $ 0.6 $ 0.6


(in millions)	Three Months Ended June 30,										Six Months Ended June 30,
	2021			2020			Change		%		2021			2020			Change		%
Research and development expenses	$	13.8		$	11.7		$	2.1	17.9	%	$	24.2		$	23.6		$	0.6	2.5	%
As a percentage of revenues	1.2		%	1.2		%					1.1		%	1.2		%
Depreciation and amortization	$	0.4		$	0.5						$	0.9		$	1.0

Research and development expenses were ~~lower~~higher in the second quarter and first ~~quarter~~six months of 2021, compared with the ~~first quarter of~~ 2020 periods, primarily reflecting ~~lower~~higher new product development expenses at our CIT ~~and CCM segments.~~segment.

Other Operating Income, net

(in millions) Three Months Ended March 31,
2021 2020 Change %
Other operating income, net $ (0.2) $ (0.6) $ 0.4 (66.7) %


(in millions)	Three Months Ended June 30,								Six Months Ended June 30,
	2021		2020		Change		%		2021		2020		Change		%
Other operating income, net	$	(1.2)	$	(0.7)	$	(0.5)	71.4	%	$	(2.2)	$	(1.3)	$	(0.9)	69.2	%

Other operating income, net in the ~~first quarter of~~ 2021 periods primarily reflected ~~$0.9~~rebates ($0.8 million ~~of rebates~~in second-quarter and ~~$0.3~~$1.7 million ofin the first six months) and royalty income ($0.4 million in second-quarter and $0.7 million in the first six months), partially offset by ~~a litigation settlement of $0.6 million and~~ an insurance settlement of ~~$0.3~~$0.5 million in both the second-quarter and first six months at ~~CBF.~~CCM.

Other operating income, net in the ~~first quarter of~~ 2020 periods primarily reflected ~~$0.5~~rebates ($0.7 million ~~of rebates~~in second-quarter and ~~$0.3~~$1.2 million ofin the first six months) and royalty income ($0.3 million in second-quarter and $0.7 million in the first six months), partially offset by ~~$0.7 million of~~ losses on sale of assets ($0.8 in second-quarter and $1.5 million in the first six months), primarily at CIT and CCM.

Operating Income

(in millions) Three Months Ended March 31,
2021 2020 Change %
Operating income $ 89.5 $ 102.7 $ (13.2) (12.9) %
Operating margin percentage 8.7 % 10.0 %


(in millions)	Three Months Ended June 30,										Six Months Ended June 30,
	2021			2020			Change		%		2021			2020			Change		%
Operating income	$	133.8		$	114.5		$	19.3	16.9	%	$	218.5		$	221.7		$	(3.2)	(1.4)	%
Operating margin percentage	11.4		%	11.9		%					10.3		%	11.5		%

Refer to Segment Results of Operations within this MD&A for further information related to segment operating income results.

Interest Expense, net

(in millions) Three Months Ended March 31,
2021 2020 Change %
Interest expense, net $ 19.2 $ 18.9 $ 0.3 1.6 %


(in millions)	Three Months Ended June 30,								Six Months Ended June 30,
	2021		2020		Change		%		2021		2020		Change		%
Interest expense, net	$	19.2	$	19.7	$	(0.5)	(2.5)	%	$	38.4	$	38.7	$	(0.3)	(0.8)	%

Interest expense, net of capitalized interest, ~~during~~declined in the second quarter and first six months of 2021 primarily reflecting draws on our revolving credit facility in the first quarter of ~~2021 primarily reflected higher long-term debt balances associated with our public offering~~2020, which were repaid in the second quarter of ~~$750.0 million of 2.75% unsecured senior notes completed in February~~ 2020. Refer to Note 1112 for further information on our long-term debt.

Loss on Extinguishment of Debt

Loss on extinguishment of debt of $8.8 million in the first ~~quarter~~six months of 2020 related to the early redemption in full of our $250.0 million aggregate principal amount of our outstanding 5.125% notes due December 15, 2020 (the “2020 Notes”). The 2020 Notes were redeemed on March 29, 2020 at the redemption price of $262.1 million. The redemption price included a premium of $8.4 million, along with $0.4 million of deferred issuance costs.

Interest Income


(in millions)	(in millions)	Three Months Ended March 31,								(in millions)	Three Months Ended June 30,						Six Months Ended June 30,
		2021		2020		Change		%				(in millions)	2021		2020			Change		%		2021		2020		Change		%
Interest income	Interest income	$	(0.5)	$	(0.7)	$	0.2	(28.6)	%				$	(0.4)	$	(2.6)		$	2.2	(84.6)	%	$	(0.9)	$	(3.3)	$	2.4	(72.7)	%

Interest income decreased during the second quarter and first ~~quarter~~six months of 2021 primarily reflecting lower cash balances and lower yields.

Other Non-operating Expense (Income), net


(in millions)	(in millions)	Three Months Ended March 31,							(in millions)	Three Months Ended June 30,						Six Months Ended June 30,
		2021		2020		Change		%			(in millions)	2021		2020			Change		%	2021		2020		Change		%
Other non-operating expense (income), net	Other non-operating expense (income), net	$	3.9	$	(0.5)	$	4.4	NM				$	1.1	$	(0.7)		$	1.8	NM	$	4.7	$	(0.9)	$	5.6	NM

Other non-operating expense (income), net in the first ~~quarter~~six months of 2021 primarily reflected the release of a portion of the indemnification asset related to the Petersen Aluminum Corporation ("Petersen") acquisition resulting from escrow expirations and changes in foreign currencies against the U.S. Dollar.

Other non-operating expense (income), net, in the first ~~quarter~~six months of 2020 primarily reflected foreign exchange gains from the strengthening of the U.S. Dollar, partially offset by the release of a portion of the indemnification asset related to the Petersen acquisition resulting from escrow expirations.

Income Taxes

(in millions) Three Months Ended March 31,
2021 2020 Change %
Provision for income taxes $ 14.7 $ 14.4 $ 0.3 2.1 %
Effective tax rate 22.0 % 18.9 %


(in millions)	Three Months Ended June 30,										Six Months Ended June 30,
	2021			2020			Change		%		2021			2020			Change		%
Provision for income taxes	$	19.8		$	22.1		$	(2.3)	(10.4)	%	$	33.1		$	37.6		$	(4.5)	(12.0)	%
Effective tax rate	17.4		%	22.5		%					18.8		%	21.1		%

The effective income tax rate on continuing operations for the first ~~quarter~~six months of 2021 was ~~22.0%~~18.8%. The year-to-date provision for income taxes included taxes on earnings at an anticipated rate of ~~24.5%~~24.4% and a tax impact of ~~$1.7~~$9.8 million related to discrete activity. The ~~first-quarter~~year-to-date net discrete tax benefit relates primarily to a reduction of prior year tax liabilities and excess tax benefits related to stock compensation.

The effective income tax rate on continuing operations for the first ~~three~~six months of 2020 was ~~18.9%~~21.1%.

Income (Loss) from Discontinued Operations


(in millions)	Three Months Ended June 30,								Six Months Ended June 30,
	2021		2020		Change		%		2021		2020		Change		%
Income (loss) from discontinued operations before taxes	$	6.3	$	(1.1)	$	7.4	(672.7)	%	$	10.8	$	(5.2)	$	16.0	(307.7)	%
Provision for (benefit from) income taxes	1.1		(0.5)						2.5		(1.6)
Income (loss) from discontinued operations	$	5.2	$	(0.6)					$	8.3	$	(3.6)

Income (loss) from discontinued operations for the second quarter and first six months of 2021 reflects improved operating results from the CBF segment, compared with the 2020 periods, partially offset by pre-close transaction costs incurred in the second quarter of 2021.

Segment Results of Operations

Carlisle Construction Materials ("CCM")

CCM continues to benefit from the strong re-roofing cycle in the United States. InAll of CCM's platforms delivered double digit sales growth, while our architectural metals and spray foam insulation product lines delivered over 40% growth. CCM is committed to delivering the full value of the Carlisle Experience and being the manufacturer of choice with second-to-none reliability for all of our channel partners. These efforts were clearly demonstrated in the second quarter with solid execution meeting unusually strong demand despite the significant supply constraints. CCM continues to operate with agility and precision, adjusting quickly to the downturn in 2020, and just as quickly adjusting to the upturn in 2021.

On June 2, 2021, we announced that construction has begun on CCM's sixth thermoplastic polyolefin ("TPO") manufacturing line, which will produce the commercial roofing industry's first ~~quarter, CCM delivered mid-single digit~~16-foot-wide TPO membranes. Located in Carlisle, Pennsylvania, the new line will add to CCM's industry-leading production capacity with the widest TPO sheets on the market. Consistent with Carlisle's Vision 2025 strategy to invest in high-returning businesses, the new TPO line will support organic growth ~~demonstrating~~initiatives and also create jobs for the ~~resilience~~city of ~~this demand. Energy-efficient building envelope products~~Carlisle and ~~solutions for nonresidential buildings are non-discretionary and can only be deferred for so long. This factor was highlighted by the inclement weather experienced~~surrounding communities. The new line is expected to begin production in ~~North America in February only temporarily impacting sales at CCM, with March volumes more than offsetting the delay.~~early 2022.

On April 20, 2021, Carlisle announced plans to build an innovative, state-of-the-art polyiso insulation manufacturing facility in Sikeston, Missouri. Consistent with Carlisle’s Vision 2025 strategy to invest in high-returning businesses to drive organic growth, the plant will support organic growth initiatives and create new jobs for the city of Sikeston and surrounding communities. The building will be constructed in accordance with the latest advances in LEED building and ESG principles. Additionally, we expect that this central location will reduce our supply chain carbon footprint and improve material lead times for customers in this region where the use of insulation in the building envelope is steadily increasing. At the new facility, CCM will manufacture energy-efficient polyiso insulation, which not only lowers energy costs for building owners and operators, but also helps reduce a building's greenhouse gas emissions.

(in millions) Three Months Ended March 31, Acquisition Effect Price / Volume Effect Exchange Rate Effect
2021 2020 Change %
Revenues $ 719.3 $ 676.4 $ 42.9 6.3 % — % 5.7 % 0.6 %
Operating income $ 121.3 $ 107.7 $ 13.6 12.6 %
Operating margin percentage 16.9 % 15.9 %
Depreciation and amortization $ 23.4 $ 24.8
Non-comparable items(1)
$ 2.3 $ 0.6
Our new investments in Sikeston, Missouri and industry-first 16 foot-wide TPO line in Carlisle, Pennsylvania are evidence of our conviction in CCM's attractive long-term growth prospects.


(in millions)	Three Months Ended June 30,										Acquisition Effect		Price / Volume Effect		Exchange Rate Effect
	2021			2020			Change		%
Revenues	$	937.3		$	734.9		$	202.4	27.5	%	—	%	26.8	%	0.7	%
Operating income	$	177.4		$	137.6		$	39.8	28.9	%
Operating margin percentage	18.9		%	18.7		%
Depreciation and amortization	$	23.5		$	25.0
Non-comparable items(1)	$	0.4		$	2.2

(1)Non-comparable items include items that, by their nature, tend to obscure the segment’s core operating results due to potential variability across periods based on the timing, frequency and magnitude of such items. Refer to Non-GAAP Financial Measures in this MD&A for a detailed reconciliation of these items.

CCM’s revenue increased in the second quarter of 2021 primarily reflecting higher volumes from strength in U.S. commercial roofing demand and price realization.

CCM’s operating margin percentage increase in the second quarter of 2021 primarily reflected higher volumes, price realization and savings from COS, partially offset by raw material and wage inflation.


(in millions)	Six Months Ended June 30,										Acquisition Effect		Price / Volume Effect		Exchange Rate Effect
	2021			2020			Change		%
Revenues	$	1,656.6		$	1,411.3		$	245.3	17.4	%	—	%	16.7	%	0.7	%
Operating income	$	298.7		$	245.3		$	53.4	21.8	%
Operating margin percentage	18.0		%	17.4		%
Depreciation and amortization	$	46.9		$	49.8
Non-comparable items (1)	$	2.7		$	2.8

CCM’s revenue increased in the first ~~quarter~~six months of 2021 primarily reflecting higher volumes from strength in U.S. commercial roofing ~~demand.~~

demand and price realization.

CCM’s operating margin percentage increase in the first ~~quarter~~six months of 2021 primarily reflected higher volumes, ~~lower travel and other administrative costs,~~price realization and savings from COS, partially offset by raw material and wage inflation.

Carlisle Interconnect Technologies ("CIT")

CIT's results were in line with subdued ~~expectations given the ongoing disruption in the commercial aerospace market.~~expectations. Given ~~improving leading indicators, which include~~ expanding global vaccine rollout, ~~increasing number of~~increased domestic travel, European countries opening their borders to American and other vaccinated travelers ~~growing aircraft manufacturers' backlogs~~ and improvements in CIT's order book, we continue to believe CIT is positioned for sequential improvement going forward. Taken together with the improving backlog in our medical technologies ~~business,~~product lines, we are optimistic CIT will return to growth in the second half of 2021.

In 2020, as a result of the market declines caused by the effects of the COVID-19 pandemic, we announced the closure of our manufacturing operations in Kent, Washington, and the relocation of selected operations to our existing facilities primarily in North America. This project is estimated to take 12a remaining 4 to 188 months to complete. Total project costs are expected to approximate ~~$18.7~~$17.7 million, with approximately ~~$10.1~~$3.5 million remaining to be incurred.


(in millions)	(in millions)	Three Months Ended March 31,										Acquisition Effect		Price / Volume Effect		Exchange Rate Effect		(in millions)	Three Months Ended June 30,										Acquisition Effect		Price / Volume Effect		Exchange Rate Effect
		2021			2020			Change		%									2021			2020			Change		%
Revenues	Revenues	$	155.8		$	224.5		$	(68.7)	(30.6)	%	0.8	%	(31.5)	%	0.1	%	Revenues	$	168.9		$	184.0		$	(15.1)	(8.2)	%	1.1	%	(9.7)	%	0.4	%
Operating (loss) income		$	(10.7)		$	16.4		$	(27.1)	(165.2)	%
Operating loss																		Operating loss	$	(12.9)		$	(1.5)		$	(11.4)	(760.0)	%
Operating margin percentage	Operating margin percentage	(6.9)		%	7.3		%											Operating margin percentage	(7.6)		%	(0.8)		%
Depreciation and amortization	Depreciation and amortization	$	18.9		$	19.1												Depreciation and amortization	$	18.7		$	19.7
Non-comparable items(1)	Non-comparable items(1)	$	2.8		$	3.4												Non-comparable items(1)	$	7.7		$	5.0

CIT's revenue decline in the second quarter of 2021 primarily reflected lower volumes, led by the downturn in the commercial aerospace market as a result of slow recovery in build rates on narrow and wide body aircraft by original equipment manufacturers ("OEMs") given declines in airline travel.

CIT’s operating margin percentage decrease in the second quarter of 2021 was driven by lower volumes, unfavorable mix, and raw material and wage inflation, partially offset by savings from COS and lower travel and other administrative costs.


(in millions)	Six Months Ended June 30,										Acquisition Effect		Price / Volume Effect		Exchange Rate Effect
	2021			2020			Change		%
Revenues	$	324.7		$	408.5		$	(83.8)	(20.5)	%	0.9	%	(21.7)	%	0.3	%
Operating (loss) income	$	(23.6)		$	14.9		$	(38.5)	(258.4)	%
Operating margin percentage	(7.3)		%	3.6		%
Depreciation and amortization	$	37.6		$	38.8
Non-comparable items(1)	$	10.5		$	8.4

CIT's revenue decline in the first ~~quarter~~six months of 2021 primarily reflected lower volumes, led by the downturn in the commercial aerospace market as a result of slow recovery in build rates on narrow and wide body aircraft by ~~original equipment manufacturers ("OEMs")~~OEMs given declines in airline travel.

CIT’s operating margin percentage ~~decrease~~decreased in the first ~~quarter~~six months of 2021, ~~was~~ driven by lower volumes, unfavorable mix, and raw material and wage inflation, partially offset by savings from COS and lower travel and other administrative costs.

Carlisle Fluid Technologies ("CFT")

CFT delivered improved revenue and operating income performance in the quarter driven by a commitment to new product introductions, price discipline and integrating our newer platforms. With end markets strengthening, ~~especially general industrial,~~ the team continues to execute on Vision 2025 initiatives and focus on enhancing our ~~customers'~~customers' experience.


(in millions)	(in millions)	Three Months Ended March 31,										Acquisition Effect		Price / Volume Effect		Exchange Rate Effect		(in millions)	Three Months Ended June 30,										Acquisition Effect		Price / Volume Effect		Exchange Rate Effect
		2021			2020			Change		%									2021			2020			Change		%
Revenues	Revenues	$	65.8		$	58.3		$	7.5	12.9	%	4.1	%	5.3	%	3.5	%	Revenues	$	71.6		$	46.5		$	25.1	54.0	%	3.6	%	44.3	%	6.1	%
Operating income		$	4.3		$	2.8		$	1.5	53.6	%
Operating income (loss)																		Operating income (loss)	$	6.6		$	(5.2)		$	11.8	226.9	%
Operating margin percentage	Operating margin percentage	6.5		%	4.8		%											Operating margin percentage	9.2		%	(11.2)		%
Depreciation and amortization	Depreciation and amortization	$	5.6		$	6.2												Depreciation and amortization	$	5.9		$	5.4
Non-comparable items(1)	Non-comparable items(1)	$	0.7		$	0.2												Non-comparable items(1)	$	—		$	2.1

CFT's revenue increased in the second quarter of 2021 reflecting increased volumes, particularly in the transportation end market, price realization, favorable foreign currency impacts and contributions from acquisitions.

CFT’s operating margin percentage performance improved in the second quarter of 2021 reflecting higher volumes, price realization and savings from COS, partially offset by wage and raw material inflation.


(in millions)	Six Months Ended June 30,										Acquisition Effect		Price / Volume Effect		Exchange Rate Effect
	2021			2020			Change		%
Revenues	$	137.4		$	104.8		$	32.6	31.1	%	3.9	%	22.7	%	4.5	%
Operating income (loss)	$	10.9		$	(2.4)		$	13.3	554.2	%
Operating margin percentage	7.9		%	(2.3)		%
Depreciation and amortization	$	11.5		$	11.6
Non-comparable items(1)	$	0.7		$	2.3

CFT's revenue increased in the first ~~quarter~~six months of 2021 reflecting increased volumes, particularly in the ~~general industrial~~transportation end market, ~~contributions from acquisitions and~~price realization, favorable foreign currency ~~impacts.~~impacts and contributions from acquisitions.

CFT’s operating margin percentage performance improved infor the first ~~quarter~~six months of 2021, reflecting ~~lower travel and other administrative costs,~~ higher volumes, price realization and savings from COS, partially offset by wage and raw material inflation.

2128

~~Carlisle Brake & Friction ("CBF")~~

At CBF, the actions taken to improve the business over the past few years are yielding expected results. In addition to these actions, demand for off-highway vehicles and equipment, especially in agricultural and construction markets, is helping to drive CBF's recovery. CBF has leveraged this volume growth to deliver positive and improving earnings. As a result, we are optimistic that 2021 will prove to be a point of inflection for CBF as it emerges from a multi-year down cycle. Additionally, we view any future infrastructure legislation in the U.S. as another positive driver for CBF.

(in millions) Three Months Ended March 31, Acquisition Effect Price / Volume Effect Exchange Rate Effect
2021 2020 Change %
Revenues $ 88.1 $ 71.0 $ 17.1 24.1 % — % 20.4 % 3.7 %
Operating income (loss) $ 6.1 $ (3.8) $ 9.9 260.5 %
Operating margin percentage 6.9 % (5.4) %
Depreciation and amortization $ 5.0 $ 5.9
Non-comparable items(1)
$ 0.9 $ 2.8

~~(1)~~Non-comparable items include items that, by their nature, tend to obscure the segment’s core operating results due to potential variability across periods based on the timing, frequency and magnitude of such items. Refer to Non-GAAP Financial Measures in this MD&A for a detailed reconciliation of these items.

~~CBF's revenue increased in the first quarter of 2021 reflecting strong volumes, particularly in the heavy equipment end market and favorable foreign exchange impacts.~~

CBF's operating margin percentage increase in the first quarter of 2021 was driven by higher volumes, lower restructuring charges and savings from COS, partially offset by unfavorable mix and wage inflation.

Liquidity and Capital Resources

A summary of our cash and cash equivalents by region follows:


(in millions)	(in millions)	March 31, 2021		December 31, 2020		(in millions)	June 30, 2021		December 31, 2020
Europe	Europe	$	116.9	$	114.8	Europe	$	135.6	$	113.7
North America (excluding U.S.)	North America (excluding U.S.)	42.3		50.8		North America (excluding U.S.)	49.3		50.8
China	China	21.3		19.3		China	6.3		18.4
Asia Pacific (excluding China)	Asia Pacific (excluding China)	53.1		30.1		Asia Pacific (excluding China)	34.5		27.0

International cash and cash equivalents	International cash and cash equivalents	233.6		215.0		International cash and cash equivalents	225.7		209.9
U.S. cash and cash equivalents	U.S. cash and cash equivalents	533.6		687.2		U.S. cash and cash equivalents	487.6		687.2
Total cash and cash equivalents	Total cash and cash equivalents	$	767.2	$	902.2	Total cash and cash equivalents	$	713.3	$	897.1

We maintain liquidity sources primarily consisting of cash and cash equivalents as well as availability under our Facility. In the near term, cash on hand is our primary source of liquidity. The decrease in cash and cash equivalents compared to December 31, 2020, primarily related to share repurchases, payment of dividends to shareholders and capital expenditures.

In certain countries, primarily China, our cash is subject to local laws and regulations that require government approval for conversion of such cash to U.S. Dollars, as well as for transfer of such cash, both temporarily and permanently outside of that jurisdiction. In addition, upon permanent transfer of cash outside of certain jurisdictions, primarily in China, we may be subject to withholding taxes, and as such we have accrued ~~$3.1~~$3.3 million in anticipation of those taxes as of ~~March 31,~~June 30, 2021.

We believe we have sufficient cash on hand, availability under the Facility and operating cash flows to meet our business requirements for at least the next 12 months. At the discretion of management, the Company may use available cash on capital expenditures, dividends, common stock repurchases, acquisitions and strategic investments.

We also anticipate we will have sufficient cash on hand, as well as available liquidity under the Facility, to pay outstanding principal balances of our existing notes by the respective maturity dates. Another potential source of liquidity is access to public capital markets, subject to market conditions. We may access the capital markets to repay the outstanding balance. Refer to Debt Instruments below.

Sources and Uses of Cash and Cash Equivalents

Three Months Ended
March 31,
(in millions) 2021 2020
Net cash provided by operating activities $ 67.6 $ 53.2
Net cash used in investing activities (28.4) (24.3)
Net cash (used in) provided by financing activities (172.8) 813.0
Effect of foreign currency exchange rate changes on cash (1.4) (5.4)
Change in cash and cash equivalents $ (135.0) $ 836.5


	Six Months Ended June 30,
(in millions)	2021		2020
Net cash provided by operating activities	$	171.5	$	226.3
Net cash used in investing activities	(63.5)		(50.0)
Net cash (used in) provided by financing activities	(284.5)		214.7
Effect of foreign currency exchange rate changes on cash	(0.3)		(4.5)
Change in cash and cash equivalents	$	(176.8)	$	386.5

Operating Activities

We generated operating cash flows of ~~$67.6~~$171.5 million for the first ~~three~~six months of 2021 (including working capital uses of ~~$54.0~~$103.9 million), compared with ~~$53.2~~$226.3 million for the first ~~three~~six months of 2020 (including working capital uses of ~~$96.0~~$69.0 million). ~~Higher~~Lower operating cash flows in the first ~~three~~six months of 2021 primarily reflected ~~an improvement in net working capital due to supply chain management, partially offset by~~ an increase in receivables from higher sales, ~~towards the end of the quarter.~~partially offset by higher payables due to rising raw material costs.

Investing Activities

Cash used in investing activities of ~~$28.4~~$63.5 million for the first ~~three~~six months of 2021 primarily reflected capital expenditures of ~~$20.0~~$55.1 million and investment in securities of $10.2 million. Cash used in investing activities of ~~$24.3~~$50.0 million for the first ~~three~~six months of 2020 primarily reflected capital expenditures of ~~$22.8~~$48.5 million.

Financing Activities

Cash used in financing activities of ~~$172.8~~$284.5 million in the first ~~three~~six months of 2021 primarily reflected share repurchases of ~~$150.0~~$265.6 million and cash dividend payments of ~~$28.4~~$56.0 million, reflecting the increased quarterly dividend of $0.525 per share. Cash provided by financing activities of ~~$813.0~~$214.7 million during the first ~~three~~six months of 2020 primarily reflected net proceeds from our February 2020 offering of $750 million of senior notes and draws under the Facility, partially offset by the early redemption of our $250 million of senior notes due December 15, 2020 and financing costs associated with our February notes offering. Additionally during the first ~~three~~six months of 2020 we used cash of ~~$120.6~~$191.8 million for share repurchases and ~~$28.3~~$56.0 million for dividend payments.

Debt Instruments

Revolving Credit Facility (the "Facility")

During the ~~three~~first six months ~~ended March 31,~~of 2021, we had no borrowings or repayments under the Facility. As of ~~March 31,~~June 30, 2021, the Facility had no outstanding balance and $1.0 billion of availability. During the ~~quarter ended March 31,~~first six months of 2020, borrowings and repayments under the Facility totaled $500.0 ~~million, which were subsequently repaid during the second quarter of 2020.~~million.

Debt Covenants

We are required to meet various covenants and limitations under our senior notes and Facility, including certain leverage ratios, interest coverage ratios and limits on outstanding debt balances held by certain subsidiaries. We were in compliance with all covenants and limitations as of ~~March 31,~~June 30, 2021 and December 31, 2020.

Refer to Note 1112 for further information on our debt instruments.

Non-GAAP Financial Measures

EBIT, Adjusted EBIT, Adjusted EBITDA and Adjusted EBITDA Margin

Earnings before interest and taxes ("EBIT"), adjusted EBIT, adjusted earnings before income, taxes, depreciation and amortization ("EBITDA") and adjusted EBITDA margin are intended to provide investors and others with information about the Company's and its segments' performance without the effect of items that, by their nature, tend to obscure core operating results due to potential variability across periods based on the timing, frequency and magnitude of such items. As a result, management believes that these measures enhance the ability of investors to analyze trends in the Company’s business and evaluate the Company’s performance relative to peer companies. This information differs from net income and operating income determined in accordance with accounting principles generally accepted in the United States of America ("U.S. ~~GAAP~~GAAP") and should not be considered in isolation or as a substitute for measures of performance determined in accordance with U.S. GAAP. The Company's and its segments' EBIT, adjusted EBIT, adjusted EBITDA and adjusted EBITDA margin follows. These non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies.


		Three Months Ended March 31,						Three Months Ended June 30,					Six Months Ended June 30,
(in millions)	(in millions)	2021			2020				(in millions)	2021			2020			2021			2020
Net income (GAAP)	Net income (GAAP)	$	52.2		$	61.8			Net income (GAAP)	$	99.3		$	75.4		$	151.5		$	137.2
Less: income (loss) from discontinued operations (GAAP)									Less: income (loss) from discontinued operations (GAAP)	5.2			(0.6)			8.3			(3.6)
Income from continuing operations (GAAP)									Income from continuing operations (GAAP)	94.1			76.0			143.2			140.8
Provision for income taxes	Provision for income taxes	14.7			14.4				Provision for income taxes	19.8			22.1			33.1			37.6
Interest expense, net	Interest expense, net	19.2			18.9				Interest expense, net	19.2			19.7			38.4			38.7
Interest income	Interest income	(0.5)			(0.7)				Interest income	(0.4)			(2.6)			(0.9)			(3.3)
EBIT	EBIT	85.6			94.4				EBIT	132.7			115.2			213.8			213.8
Exit and disposal, and facility rationalization costs	Exit and disposal, and facility rationalization costs	3.1			6.3				Exit and disposal, and facility rationalization costs	7.5			7.3			10.6			10.8
Inventory step-up amortization and acquisition costs	Inventory step-up amortization and acquisition costs	0.9			0.7				Inventory step-up amortization and acquisition costs	1.3			4.9			2.2			5.6
Impairment charges	Impairment charges	—			—				Impairment charges	—			—			—			—
Losses from acquisitions and disposals	Losses from acquisitions and disposals	3.4			0.2				Losses from acquisitions and disposals	0.1			2.0			3.5			2.2
Losses from insurance	Losses from insurance	0.3			—				Losses from insurance	0.5			—			0.5			—
Losses from litigation	Losses from litigation	0.6			—				Losses from litigation	0.1			—			0.1			—
Losses on extinguishment of debt	Losses on extinguishment of debt	—			8.8				Losses on extinguishment of debt	—			—			—			8.8
Total non-comparable items	Total non-comparable items	8.3			16.0				Total non-comparable items	9.5			14.2			16.9			27.4
Adjusted EBIT	Adjusted EBIT	93.9			110.4				Adjusted EBIT	142.2			129.4			230.7			241.2
Depreciation	Depreciation	23.7			24.6				Depreciation	20.3			21.2			40.6			41.4
Amortization	Amortization	30.6			32.2				Amortization	29.2			29.8			58.2			60.5
Adjusted EBITDA	Adjusted EBITDA	$	148.2		$	167.2			Adjusted EBITDA	$	191.7		$	180.4		$	329.5		$	343.1
Divided by:	Divided by:								Divided by:
Total revenues	Total revenues	$	1,029.0		$	1,030.2			Total revenues	$	1,177.8		$	965.4		$	2,118.7		$	1,924.6
Adjusted EBITDA margin	Adjusted EBITDA margin	14.4		%	16.2		%		Adjusted EBITDA margin	16.3		%	18.7		%	15.6		%	17.8		%


	Three Months Ended June 30, 2021
(in millions)	CCM			CIT			CFT			Corporate and unallocated
Operating income (loss) (GAAP)	$	177.4		$	(12.9)		$	6.6		$	(37.3)
Non-operating expense (income)(1)	0.1			—			1.1			(0.1)
EBIT	177.3			(12.9)			5.5			(37.2)
Exit and disposal, and facility rationalization costs	—			7.7			(0.2)			—
Inventory step-up amortization and acquisition costs	—			—			—			1.3
Impairment charges	—			—			—			—
(Gains) losses from acquisitions and disposals	(0.1)			—			0.2			—
Losses from insurance	0.5			—			—			—
Losses from litigation	—			—			—			0.1
Losses on extinguishment of debt	—			—			—			—
Total non-comparable items	0.4			7.7			—			1.4
Adjusted EBIT	177.7			(5.2)			5.5			(35.8)
Depreciation	12.0			6.0			1.4			0.9
Amortization	11.5			12.7			4.5			0.5
Adjusted EBITDA	$	201.2		$	13.5		$	11.4		$	(34.4)
Divided by:
Total revenues	$	937.3		$	168.9		$	71.6		$	—
Adjusted EBITDA margin	21.5		%	8.0		%	15.9		%	NM

(1)Includes other non-operating (income) expense, which may be presented in separate line items on the Condensed Consolidated Statements of Income.


	Three Months Ended June 30, 2020
(in millions)	CCM			CIT			CFT			Corporate and unallocated
Operating income (loss) (GAAP)	$	137.6		$	(1.5)		$	(5.2)		$	(16.4)
Non-operating expense (income)(1)	2.6			0.2			—			(3.5)
EBIT	135.0			(1.7)			(5.2)			(12.9)
Exit and disposal, and facility rationalization costs	0.2			5.0			2.1			—
Inventory step-up amortization and acquisition costs	—			—			—			4.9
Impairment charges	—			—			—			—
Losses (gains) from acquisitions and disposals	2.0			—			—			—
Losses (gains) from insurance	—			—			—			—
Losses (gains) from litigation	—			—			—			—
Losses on extinguishment of debt	—			—			—			—
Total non-comparable items	2.2			5.0			2.1			4.9
Adjusted EBIT	137.2			3.3			(3.1)			(8.0)
Depreciation	12.5			6.6			1.3			0.8
Amortization	12.5			13.1			4.1			0.1
Adjusted EBITDA	$	162.2		$	23.0		$	2.3		$	(7.1)
Divided by:
Total revenues	$	734.9		$	184.0		$	46.5		$	—
Adjusted EBITDA margin	22.1		%	12.5		%	4.9		%	NM

(1)Includes other non-operating (income) expense, which may be presented in separate line items on the Condensed Consolidated Statements of Income.

2432


	Six Months Ended June 30, 2021
(in millions)	CCM			CIT			CFT			Corporate and unallocated
Operating income (loss) (GAAP)	$	298.7		$	(23.6)		$	10.9		$	(67.5)
Non-operating expense(1)	2.3			—			1.5			0.9
EBIT	296.4			(23.6)			9.4			(68.4)
Exit and disposal, and facility rationalization costs	—			10.2			0.4			—
Inventory step-up amortization and acquisition costs	—			—			0.1			2.1
Impairment charges	—			—			—			—
Losses from acquisitions and disposals	2.2			0.3			0.2			0.8
Losses from insurance	0.5			—			—			—
Losses from litigation	—			—			—			0.1
Losses on extinguishment of debt	—			—			—			—
Total non-comparable items	2.7			10.5			0.7			3.0
Adjusted EBIT	299.1			(13.1)			10.1			(65.4)
Depreciation	23.9			12.3			2.6			1.8
Amortization	23.0			25.3			8.9			1.0
Adjusted EBITDA	$	346.0		$	24.5		$	21.6		$	(62.6)
Divided by:
Total revenues	$	1,656.6		$	324.7		$	137.4		$	—
Adjusted EBITDA margin	20.9		%	7.5		%	15.7		%	NM

(1)Includes other non-operating (income) expense, which may be presented in separate line items on the Condensed Consolidated Statements of Income.

Three Months Ended March 31, 2021
(in millions) CCM CIT CFT CBF Corporate and unallocated
Operating income (loss) (GAAP) $ 121.3 $ (10.7) $ 4.3 $ 6.1 $ (31.5)
Non-operating expense(1)
2.2 — 0.4 0.3 1.0
EBIT 119.1 (10.7) 3.9 5.8 (32.5)
Exit and disposal, and facility rationalization costs — 2.5 0.6 — —
Inventory step-up amortization and acquisition costs — — 0.1 — 0.8
Impairment charges — — — — —
Losses from acquisitions and disposals 2.3 0.3 — — 0.8
Losses from insurance — — — 0.3 —
Losses from litigation — — — 0.6 —
Losses on extinguishment of debt — — — — —
Total non-comparable items 2.3 2.8 0.7 0.9 1.6
Adjusted EBIT 121.4 (7.9) 4.6 6.7 (30.9)
Depreciation 11.9 6.3 1.2 3.4 0.9
Amortization 11.5 12.6 4.4 1.6 0.5
Adjusted EBITDA $ 144.8 $ 11.0 $ 10.2 $ 11.7 $ (29.5)
Divided by:
Total revenues $ 719.3 $ 155.8 $ 65.8 $ 88.1 $ —
Adjusted EBITDA margin 20.1 % 7.1 % 15.5 % 13.3 % NM


	Six Months Ended June 30, 2020
(in millions)	CCM			CIT			CFT			Corporate and unallocated
Operating income (loss) (GAAP)	$	245.3		$	14.9		$	(2.4)		$	(36.1)
Non-operating expense income)(1)	2.9			(0.6)			(3.3)			8.9
EBIT	242.4			15.5			0.9			(45.0)
Exit and disposal, and facility rationalization costs	0.3			8.4			2.1			—
Inventory step-up amortization and acquisition costs	0.2			—			0.2			5.2
Impairment charges	—			—			—			—
Losses (gains) from acquisitions and disposals	2.3			—			—			(0.1)
Losses from insurance	—			—			—			—
Losses from litigation	—			—			—			—
Losses on extinguishment of debt	—			—			—			8.8
Total non-comparable items	2.8			8.4			2.3			13.9
Adjusted EBIT	245.2			23.9			3.2			(31.1)
Depreciation	24.7			12.6			2.6			1.5
Amortization	25.1			26.2			9.0			0.2
Adjusted EBITDA	$	295.0		$	62.7		$	14.8		$	(29.4)
Divided by:
Total revenues	$	1,411.3		$	408.5		$	104.8		$	—
Adjusted EBITDA margin	20.9		%	15.3		%	14.1		%	NM

(1)Includes other non-operating (income) expense, which may be presented in separate line items on the Condensed Consolidated Statements of Income.

Three Months Ended March 31, 2020
(in millions) CCM CIT CFT CBF Corporate and unallocated
Operating income (loss) (GAAP) $ 107.7 $ 16.4 $ 2.8 $ (3.8) $ (20.4)
Non-operating (income) expense(1)
0.3 (0.8) (3.3) (0.3) 12.4
EBIT 107.4 17.2 6.1 (3.5) (32.8)
Exit and disposal, and facility rationalization costs 0.1 3.4 — 2.8 —
Inventory step-up amortization and acquisition costs 0.2 — 0.2 — 0.3
Impairment charges — — — — —
Losses (gains) from acquisitions and disposals 0.3 — — — (0.1)
Losses (gains) from insurance — — — — —
Losses (gains) from litigation — — — — —
Losses on extinguishment of debt — — — — 8.8
Total non-comparable items 0.6 3.4 0.2 2.8 9.0
Adjusted EBIT 108.0 20.6 6.3 (0.7) (23.8)
Depreciation 12.2 6.0 1.3 4.4 0.7
Amortization 12.6 13.1 4.9 1.5 0.1
Adjusted EBITDA $ 132.8 $ 39.7 $ 12.5 $ 5.2 $ (23.0)
Divided by:
Total revenues $ 676.4 $ 224.5 $ 58.3 $ 71.0 $ —
Adjusted EBITDA margin 19.6 % 17.7 % 21.4 % 7.3 % NM

~~(1)Includes other non-operating (income) expense, which may be presented in separate line items on the Condensed Consolidated Statements of Income.~~

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Outlook

Our expectations for segment and total revenues for 2021, compared to 2020 follow:

2021 Revenue

Primary Drivers

Carlisle Construction Materials

~~Low-double~~High-teens
~~digit~~ growth

•Strong re-roofing demand

•Price discipline

•Strong architectural metals, European and ~~polyurethanes~~polyurethane markets

Carlisle Interconnect Technologies

Mid-to-high-single digit
decline

•Commercial aerospace performance at or near bottom; backlog improving

Carlisle Fluid Technologies

~~Low-double~~Mid-teens
~~digit~~ growth

•Focus on new product introductions and price realization

•Markets strengthening

~~Carlisle Brake & Friction~~

~~30% growth~~

•~~Construction and agriculture markets strengthening~~

•~~Bookings up over 80% in first quarter year-over-year~~

Total Carlisle

~~Low-double~~Mid-teens
~~digit~~ growth

For the year 2021, we expect:

•Corporate expenses of approximately ~~$120~~$125 million;

•Depreciation and amortization expense of approximately ~~$225~~$210 million;

•Capital expenditures ~~between~~of approximately $150 ~~million and $175~~ million;

•Interest expense, net of interest income, of approximately $75 million; and

•Base tax rate of approximately 25%.

Forward-Looking Statements

This report contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the potential or expected impacts of the global COVID-19 pandemic. Forward-looking statements generally use words such as "expect," "foresee," "anticipate," "believe," "project," "should," "estimate," "will," "plans," "intends," "forecast," and similar expressions, and reflect our expectations concerning the future. Such statements are made based on known events and circumstances at the time of publication and, as such, are subject in the future to unforeseen risks and uncertainties. It is possible that our future performance may differ materially from current expectations expressed in these forward-looking statements, due to a variety of factors such as: risks from the global COVID-19 pandemic, including, for example, expectations regarding the impact of COVID-19 on our businesses, including on customer demand, supply chains and distribution systems, production, our ability to maintain appropriate labor levels, our ability to ship products to our customers, our future results, or our full-year financial outlook; increasing price and product/service competition by foreign and domestic competitors, including new entrants; technological developments and changes; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; our mix of products/services; increases in raw material costs which cannot be recovered in product pricing; domestic and foreign governmental and public policy changes including environmental and industry regulations; threats associated with and efforts to combat terrorism; protection and validity of patent and other intellectual property rights; the identification of strategic acquisition targets and our successful completion of any transaction and integration of our strategic ~~acquisitions;~~acquisitions, including Henry; our successful completion of strategic dispositions, including CBF; the cyclical nature of our businesses; and the outcome of pending and future litigation and governmental proceedings; and the other factors discussed in the reports we file with or furnish to the Securities and Exchange Commission ("SEC") from time to time. In addition, such statements could be affected by general industry and market conditions and growth rates, the condition of the financial and credit markets and general domestic and international economic conditions including interest rate and currency exchange rate fluctuations. Further, any conflict in the international arena may adversely affect general market conditions and our future performance. Any forward-looking statement speaks only as of the date on which that statement is made, and we undertake no duty to update any forward-looking statement to reflect events or circumstances, including unanticipated events, after the date on which that statement is made, unless otherwise required by law. New factors emerge from time to time and it is not possible for management to predict all of those factors, nor can it assess the impact of each of those factors on the business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statement.

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Item 3. Quantitative and Qualitative Disclosure about Market Risk

There have been no material changes in the Company’s market risk for the ~~three~~six months ended ~~March 31,~~June 30, 2021. For additional information, refer to "PART II—Item 7A. Quantitative and Qualitative Disclosures About Market Risk" of the Company’s 2020 Annual Report on Form 10-K.

Item 4. Controls and Procedures

a.Evaluation of disclosure controls and procedures. Under the supervision and with the participation of the Company’s management, including the Company’s Chief Executive Officer and Chief Financial Officer, the Company carried out an evaluation of the effectiveness of the design and operation of the Company’s disclosure controls and procedures pursuant to Exchange Act Rule 13a-15. Based upon that evaluation and as of ~~March 31,~~June 30, 2021, the Chief Executive Officer and Chief Financial Officer concluded that the Company’s disclosure controls and procedures are effective.

b.Changes in internal controls. During the first ~~three~~six months of 2021, there were no changes in the Company's internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II

Item 1. Legal Proceedings

The Company is a party to certain lawsuits in the ordinary course of business. Information about legal proceedings is included in Note ~~15.~~16.

Item 1A. Risk Factors

There have been no material changes in the Company's risk factors disclosed in "PART I—Item 1A. Risk Factors" in our 2020 Annual Report on Form 10-K.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

The following table summarizes the repurchase of common stock during the three months ended ~~March 31,~~June 30, 2021:

(in millions, except per share amounts) Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs(1)
January — $ — — 1.9
February 0.4 149.02 0.4 6.5
March 0.6 154.80 0.6 5.9
Total 1.0 1.0


(in millions, except per share amounts)	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs(1)
April	0.3	$	171.68	0.3	5.6
May	—	—		—	5.6
June	0.3	186.28		0.3	5.3
Total	0.6			0.6

(1)Represents the remaining total number of shares that can be repurchased under the Company’s share repurchase program. On February 2, 2021, the Company's Board of Directors approved a 5 million share increase in the Company's share repurchase program.

The Company may also reacquire shares outside of the repurchase program from time to time in connection with the forfeiture of shares in satisfaction of tax withholding obligations from the vesting of share-based compensation. During the three months ended ~~March 31,~~June 30, 2021, there were less than 0.1 million shares reacquired in transactions outside of the share repurchase program.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

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Item 6. Exhibits

Exhibit

Number

Filed with this Form 10-Q

Incorporated by Reference

Exhibit Title

Form

File No.

Date Filed

2.1

Equity and Asset Purchase Agreement, dated May 24, 2021, by and among Carlisle Fluid Technologies, Inc., Carlisle Global II Limited, Carlisle Industrial Brake & Friction, Inc., Carlisle International B.V., Carlisle Asia Pacific Ltd., Carlisle Intangible, LLC, Carlisle, LLC, Engineered Components and Systems, LLC, CMBF, LLC, Power-Packer Europa B.V., Power Packer North America, Inc., EC&S Holdings Hong Kong Limited and BRWS Parent LLC (solely for purposes of Section 8.3 thereto).

8-K

001-9278

5/26/2021

2.2

Agreement and Plan of Merger, dated as of July 18, 2021, by and among Carlisle Companies Incorporated, ASP Henry Holdings, Inc., ASP Henry Investco LP and Aaron Merger Sub, Inc.

8-K

001-9278

7/20/2021

3.1

Restated Certificate of Incorporation of the Company.

10-Q

001-9278

10/21/2015

3.2

Amended and Restated Bylaws of the Company.

8-K

001-9278

12/14/2015

4.1P

Form of Trust Indenture between the Company and Fleet National Bank.

S-3

333-16785

11/26/1996

4.2

First Supplemental Indenture, dated as of August 18, 2006, among the Company, U.S. Bank National Association (as successor to State Street Bank and Trust Company, as successor to Fleet National Bank) and The Bank of New York Mellon Trust Company, N.A.

8-K

001-9278

8/18/2006

4.3

Second Supplemental Indenture, dated as of December 9, 2010, among the Company, U.S. Bank National Association (as successor to State Street Bank and Trust Company, as successor to Fleet National Bank) and The Bank of New York Mellon Trust Company, N.A.

8-K

001-9278

12/10/2010

4.4

Third Supplemental Indenture, dated as of November 20, 2012, among the Company, U.S. Bank National Association (as successor to State Street Bank and Trust Company, as successor to Fleet National Bank) and The Bank of New York Mellon Trust Company, N.A.

8-K

001-9278

11/20/2012

4.54.5

Fourth Supplemental Indenture, dated as of February 20, 2020, among the Company, U.S. Bank National Association (as successor to State Street Bank and Trust Company, as successor to Fleet National Bank) and The Bank of New York Mellon Trust Company, N.A.

8-K

001-9278

2/28/2020

4.64.6

Form of 3.500% Notes due 2024.

8-K

001-9278

11/16/2017

4.74.7

Form of 3.750% Notes due 2027.

8-K

001-9278

11/16/2017

4.84.8

Form of 2.750% Notes due 2030.

8-K

001-9278

2/28/2020

4.94.9

Description of Securities Registered Pursuant to Section 12 of the Securities Exchange Act of 1934.

10-K

001-9278

2/10/2020

10.1

Form of Trademark License Agreement between Carlisle Intangible Company, LLC and Engineered Components and Systems, LLC.

8-K

001-9278

5/26/2021

31.1

Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(a).

31.2

Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a).

32.1

Section 1350 Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS

Inline XBRL Instance

101.SCH

Inline XBRL Taxonomy Extension Schema

101.CAL

Inline XBRL Taxonomy Extension Calculation

101.LAB

Inline XBRL Taxonomy Extension Labels

101.PRE

Inline XBRL Taxonomy Extension Presentation

101.DEF

Inline XBRL Taxonomy Extension Definition

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

P Indicates paper filing.

2836

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		CARLISLE COMPANIES INCORPORATED

Date:	~~April~~July 27, 2021	By:	/s/ Robert M. Roche
			Robert M. Roche
			Vice President and Chief Financial Officer

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