UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


(Mark One)			☒			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, 2022


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

FOR THE TRANSITION PERIOD FROM _____ TO _____.

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.)

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, $1 par value

CSL

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 22,~~July 21, 2022, there were ~~51,698,461~~51,724,287 shares of the registrant's common stock, par value $1.00 per share, outstanding.

Carlisle Companies Incorporated

Table of Contents


			Page
PART I—Financial Information

Item 1. Financial Statements			3

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

Condensed Consolidated Balance Sheets (Unaudited)			4

Condensed Consolidated ~~Statement~~Statements of Cash Flows (Unaudited)			5

Condensed Consolidated Statement s of Stockholders' Equity (Unaudited)			6

Notes to Condensed Consolidated Financial Statements (Unaudited)			78

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			1921

Item 3. Quantitative and Qualitative Disclosure about Market Risk			3034

Item 4. Controls and Procedures			3034

PART II—Other Information

Item 1. Legal Proceedings			3034

Item 1A. Risk Factors			3034

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			3034

Item 3. Defaults Upon Senior Securities			3135

Item 4. Mine Safety Disclosures			3135

Item 5. Other Information			3135

Item 6. Exhibits			3135

Signature			3236

PART I—Financial Information

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)		2022		2021			(in millions, except per share amounts)	2022		2021		2022		2021
Revenues	Revenues		$	1,496.3	$	940.9		Revenues	$	1,846.9	$	1,177.8	$	3,343.2	$	2,118.7

Cost of goods sold	Cost of goods sold		1,005.4		696.0			Cost of goods sold	1,214.9		870.1		2,220.3		1,566.1
Selling and administrative expenses	Selling and administrative expenses		203.0		150.8			Selling and administrative expenses	210.6		161.3		413.6		312.1
Research and development expenses	Research and development expenses		12.3		10.4			Research and development expenses	12.6		13.8		24.9		24.2

Other operating income, net	Other operating income, net		(1.7)		(1.0)			Other operating income, net	(1.8)		(1.2)		(3.5)		(2.2)
Operating income	Operating income		277.3		84.7			Operating income	410.6		133.8		687.9		218.5
Interest expense, net	Interest expense, net		22.6		19.2			Interest expense, net	22.4		19.2		45.0		38.4

Interest income	Interest income		(0.2)		(0.5)			Interest income	(0.6)		(0.4)		(0.8)		(0.9)
Other non-operating expense, net	Other non-operating expense, net		0.1		3.6			Other non-operating expense, net	2.5		1.1		2.6		4.7
Income from continuing operations before income taxes	Income from continuing operations before income taxes		254.8		62.4			Income from continuing operations before income taxes	386.3		113.9		641.1		176.3
Provision for income taxes	Provision for income taxes		60.5		13.3			Provision for income taxes	90.4		19.8		150.9		33.1
Income from continuing operations	Income from continuing operations		194.3		49.1			Income from continuing operations	295.9		94.1		490.2		143.2

Discontinued operations:	Discontinued operations:							Discontinued operations:
(Loss) income before income taxes			(0.7)		4.5
Provision for income taxes			—		1.4
(Loss) income from discontinued operations			(0.7)		3.1
Income before income taxes								Income before income taxes	4.8		6.3		4.1		10.8
(Benefit from) provision for income taxes								(Benefit from) provision for income taxes	(0.8)		1.1		(0.8)		2.5
Income from discontinued operations								Income from discontinued operations	5.6		5.2		4.9		8.3
Net income	Net income		$	193.6	$	52.2		Net income	$	301.5	$	99.3	$	495.1	$	151.5

Basic 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		$	3.72	$	0.92		Income from continuing operations	$	5.70	$	1.79	$	9.41	$	2.71
(Loss) income from discontinued operations			(0.01)		0.06
Income from discontinued operations								Income from discontinued operations	0.11		0.10		0.09		0.16
Basic earnings per share	Basic earnings per share		$	3.71	$	0.98		Basic earnings per share	$	5.81	$	1.89	$	9.50	$	2.87

Diluted earnings per share attributable to common shares:	Diluted earnings per share attributable to common shares:							Diluted earnings per share attributable to common shares:
Income from continuing operations	Income from continuing operations		$	3.67	$	0.91		Income from continuing operations	$	5.62	$	1.77	$	9.28	$	2.68
(Loss) income from discontinued operations			(0.01)		0.06
Income from discontinued operations								Income from discontinued operations	0.11		0.10		0.09		0.16
Diluted earnings per share	Diluted earnings per share		$	3.66	$	0.97		Diluted earnings per share	$	5.73	$	1.87	$	9.37	$	2.84

Average shares outstanding:	Average shares outstanding:							Average shares outstanding:
Basic	Basic		52.1		53.0			Basic	51.8		52.3		52.0		52.7
Diluted	Diluted		52.9		53.6			Diluted	52.5		53.0		52.7		53.3

Comprehensive income:	Comprehensive income:							Comprehensive income:
Net income	Net income		$	193.6	$	52.2		Net income	$	301.5	$	99.3	$	495.1	$	151.5
Other comprehensive income (loss):	Other comprehensive income (loss):							Other comprehensive income (loss):
Foreign currency gains (losses)			3.5		(13.3)
Foreign currency (losses) gains								Foreign currency (losses) gains	(40.8)		6.8		(37.3)		(6.5)
Amortization of unrecognized net periodic benefit costs, net of tax	Amortization of unrecognized net periodic benefit costs, net of tax		1.0		1.2			Amortization of unrecognized net periodic benefit costs, net of tax	1.0		1.2		2.0		2.4
Other, net of tax	Other, net of tax		(0.7)		(2.0)			Other, net of tax	(1.0)		0.3		(1.7)		(1.7)
Other comprehensive income (loss)			3.8		(14.1)
Other comprehensive (loss) income								Other comprehensive (loss) income	(40.8)		8.3		(37.0)		(5.8)
Comprehensive income	Comprehensive income		$	197.4	$	38.1		Comprehensive income	$	260.7	$	107.6	$	458.1	$	145.7

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)

Carlisle Companies Incorporated

Condensed Consolidated Balance Sheets (Unaudited)


(in millions, except par values)	(in millions, except par values)	March 31, 2022		December 31, 2021		(in millions, except par values)	June 30, 2022		December 31, 2021
ASSETS	ASSETS					ASSETS
Current assets:	Current assets:					Current assets:
Cash and cash equivalents	Cash and cash equivalents	$	291.7	$	324.4	Cash and cash equivalents	$	353.2	$	324.4
Receivables, net of allowance for credit losses of $6.2 million and $5.3 million, respectively		1,002.6		814.6
Receivables, net of allowance for credit losses of $5.7 million and $5.3 million, respectively						Receivables, net of allowance for credit losses of $5.7 million and $5.3 million, respectively	1,179.0		814.6
Inventories, net	Inventories, net	728.9		605.1		Inventories, net	780.9		605.1
Contract assets	Contract assets	73.6		72.1		Contract assets	78.5		72.1
Prepaid expenses	Prepaid expenses	41.8		49.9		Prepaid expenses	32.2		49.9
Other current assets	Other current assets	90.2		284.8		Other current assets	108.8		284.8

Total current assets	Total current assets	2,228.8		2,150.9		Total current assets	2,532.6		2,150.9

Property, plant, and equipment, net	Property, plant, and equipment, net	769.1		759.9		Property, plant, and equipment, net	785.1		759.9
Goodwill, net	Goodwill, net	2,215.0		2,199.0		Goodwill, net	2,201.6		2,199.0
Other intangible assets, net	Other intangible assets, net	1,980.9		2,008.7		Other intangible assets, net	1,930.4		2,008.7
Other long-term assets	Other long-term assets	129.2		128.3		Other long-term assets	128.0		128.3

Total assets	Total assets	$	7,323.0	$	7,246.8	Total assets	$	7,577.7	$	7,246.8

LIABILITIES AND EQUITY	LIABILITIES AND EQUITY					LIABILITIES AND EQUITY
Current liabilities:	Current liabilities:					Current liabilities:
Accounts payable	Accounts payable	$	520.9	$	432.4	Accounts payable	$	549.6	$	432.4
Current portion of debt	Current portion of debt	352.1		352.0		Current portion of debt	352.2		352.0
Accrued and other current liabilities	Accrued and other current liabilities	278.4		351.2		Accrued and other current liabilities	320.0		351.2
Contract liabilities	Contract liabilities	37.2		33.9		Contract liabilities	37.9		33.9

Total current liabilities	Total current liabilities	1,188.6		1,169.5		Total current liabilities	1,259.7		1,169.5

Long-term liabilities:	Long-term liabilities:					Long-term liabilities:
Long-term debt, less current portion	Long-term debt, less current portion	2,576.7		2,575.4		Long-term debt, less current portion	2,577.7		2,575.4
Contract liabilities	Contract liabilities	251.9		250.0		Contract liabilities	255.8		250.0
Other long-term liabilities	Other long-term liabilities	627.2		622.4		Other long-term liabilities	609.4		622.4

Total long-term liabilities	Total long-term liabilities	3,455.8		3,447.8		Total long-term liabilities	3,442.9		3,447.8

Stockholders' equity:	Stockholders' equity:					Stockholders' equity:
Preferred stock, $1 par value per share (5.0 shares authorized and unissued)	Preferred stock, $1 par value per share (5.0 shares authorized and unissued)	—		—		Preferred stock, $1 par value per share (5.0 shares authorized and unissued)	—		—
Common stock, $1 par value per share (200.0 shares authorized; 51.6 and 52.0 shares outstanding, respectively)		78.7		78.7
Common stock, $1 par value per share (200.0 shares authorized; 51.5 and 52.0 shares outstanding, respectively)						Common stock, $1 par value per share (200.0 shares authorized; 51.5 and 52.0 shares outstanding, respectively)	78.7		78.7
Additional paid-in capital	Additional paid-in capital	483.5		481.5		Additional paid-in capital	490.9		481.5
Treasury shares, at cost (26.8 and 26.4 shares, respectively)		(2,184.8)		(2,063.2)
Treasury shares, at cost (26.9 and 26.4 shares, respectively)						Treasury shares, at cost (26.9 and 26.4 shares, respectively)	(2,228.4)		(2,063.2)
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(101.4)		(105.2)		Accumulated other comprehensive loss	(142.2)		(105.2)
Retained earnings	Retained earnings	4,402.6		4,237.7		Retained earnings	4,676.1		4,237.7
Total stockholders' equity	Total stockholders' equity	2,678.6		2,629.5		Total stockholders' equity	2,875.1		2,629.5
Total liabilities and equity	Total liabilities and equity	$	7,323.0	$	7,246.8	Total liabilities and equity	$	7,577.7	$	7,246.8

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)	2022		2021		(in millions)	2022		2021
Operating activities:	Operating activities:					Operating activities:
Net income	Net income	$	193.6	$	52.2	Net income	$	495.1	$	151.5
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	24.0		23.7		Depreciation	48.0		46.3
Amortization	Amortization	40.7		30.6		Amortization	79.2		60.8
Lease expense	Lease expense	7.1		6.8		Lease expense	14.2		13.5

Stock-based compensation	Stock-based compensation	9.6		14.9		Stock-based compensation	15.8		8.7

Deferred taxes	Deferred taxes	1.2		(1.1)		Deferred taxes	0.4		0.7

Other operating activities, net	Other operating activities, net	3.3		4.2		Other operating activities, net	3.0		9.5
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	(189.2)		(72.9)		Receivables	(372.2)		(190.7)
Inventories	Inventories	(122.0)		(30.8)		Inventories	(184.4)		(40.6)
Contract assets	Contract assets	(1.5)		8.2		Contract assets	(6.5)		13.7
Prepaid expenses and other assets	Prepaid expenses and other assets	17.4		20.6		Prepaid expenses and other assets	33.4		16.3
Accounts payable	Accounts payable	88.5		45.6		Accounts payable	121.2		118.3
Accrued and other current liabilities	Accrued and other current liabilities	(23.1)		(24.7)		Accrued and other current liabilities	(7.3)		(20.9)
Contract liabilities	Contract liabilities	5.2		2.9		Contract liabilities	10.4		6.8
Other long-term liabilities	Other long-term liabilities	(10.5)		(12.6)		Other long-term liabilities	(26.8)		(22.4)
Net cash provided by operating activities	Net cash provided by operating activities	44.3		67.6		Net cash provided by operating activities	223.5		171.5

Investing activities:	Investing activities:					Investing activities:
Proceeds from sale of discontinued operation, net of cash disposed	Proceeds from sale of discontinued operation, net of cash disposed	125.0		—		Proceeds from sale of discontinued operation, net of cash disposed	132.0		—
Capital expenditures						Capital expenditures	(82.7)		(55.1)
Acquisitions, net of cash acquired	Acquisitions, net of cash acquired	(24.7)		—		Acquisitions, net of cash acquired	(24.7)		—
Capital expenditures		(31.1)		(20.0)
Investment in securities	Investment in securities	10.3		(10.2)		Investment in securities	10.3		(10.2)
Other investing activities, net	Other investing activities, net	1.7		1.8		Other investing activities, net	2.0		1.8
Net cash provided by (used in) investing activities	Net cash provided by (used in) investing activities	81.2		(28.4)		Net cash provided by (used in) investing activities	36.9		(63.5)

Financing activities:	Financing activities:					Financing activities:

Repurchases of common stock	Repurchases of common stock	(125.0)		(150.0)		Repurchases of common stock	(175.0)		(265.6)
Dividends paid	Dividends paid	(28.7)		(28.4)		Dividends paid	(56.7)		(56.0)
Proceeds from exercise of stock options	Proceeds from exercise of stock options	7.7		13.5		Proceeds from exercise of stock options	16.0		45.6
Withholding tax paid related to stock-based compensation	Withholding tax paid related to stock-based compensation	(12.0)		(7.6)		Withholding tax paid related to stock-based compensation	(12.5)		(7.7)
Other financing activities, net	Other financing activities, net	(0.8)		(0.3)		Other financing activities, net	(1.7)		(0.8)
Net cash used in financing activities	Net cash used in financing activities	(158.8)		(172.8)		Net cash used in financing activities	(229.9)		(284.5)

Effect of foreign currency exchange rate changes on cash and cash equivalents	Effect of foreign currency exchange rate changes on cash and cash equivalents	0.6		(1.4)		Effect of foreign currency exchange rate changes on cash and cash equivalents	(1.7)		(0.3)
Change in cash and cash equivalents	Change in cash and cash equivalents	(32.7)		(135.0)		Change in cash and cash equivalents	28.8		(176.8)
Less: change in cash and cash equivalents of discontinued operations	Less: change in cash and cash equivalents of discontinued operations	—		1.1		Less: change in cash and cash equivalents of discontinued operations	—		7.0
Cash and cash equivalents at beginning of period	Cash and cash equivalents at beginning of period	324.4		897.1		Cash and cash equivalents at beginning of period	324.4		897.1
Cash and cash equivalents at end of period	Cash and cash equivalents at end of period	$	291.7	$	761.0	Cash and cash equivalents at end of period	$	353.2	$	713.3

See accompanying Notes to Condensed Consolidated Financial Statements (Unaudited)

Carlisle Companies Incorporated

Condensed Consolidated ~~Statement~~Statements of Stockholders’ Equity (Unaudited)

Common Stock Additional
Paid-In Capital Accumulated Other Comprehensive Income (Loss) Retained Earnings Shares in Treasury Total Stockholders' Equity
(in millions, except per share amounts) Shares Amount Shares Cost
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 — — — — 52.2 — — 52.2
Other comprehensive loss, net of tax — — — (14.1) — — — (14.1)
Dividends - $0.525 per share — — — — (28.5) — — (28.5)
Repurchases of common stock (1.0) — — — — 1.0 (150.0) (150.0)
Issuances and deferrals, net for stock-based compensation(1)
0.2 — 1.7 — — (0.2) 12.8 14.5
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 December 31, 2021 52.0 $ 78.7 $ 481.5 $ (105.2) $ 4,237.7 26.4 $ (2,063.2) $ 2,629.5
Net income — — — — 193.6 — — 193.6
Other comprehensive income, net of tax — — — 3.8 — — — 3.8
Dividends - $0.54 per share — — — — (28.7) — — (28.7)
Repurchases of common stock (0.5) — — — — 0.5 (125.0) (125.0)
Issuances and deferrals, net for stock-based compensation(1)
0.1 — 2.0 — — (0.1) 3.4 5.4
Balance as of March 31, 2022 51.6 $ 78.7 $ 483.5 $ (101.4) $ 4,402.6 26.8 $ (2,184.8) $ 2,678.6


	Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Shares in Treasury			Total Stockholders' Equity
(in millions, except per share amounts)	Shares	Amount								Shares	Cost
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	—	—		—		—		99.3		—	—		99.3
Other comprehensive income, net of tax	—	—		—		8.3		—		—	—		8.3
Dividends - $0.525 per share	—	—		—		—		(27.5)		—	—		(27.5)
Repurchases of common stock	(0.6)	—		—		—		—		0.6	(115.6)		(115.6)
Issuances and deferrals, net for stock based compensation(1)	0.4	—		16.7		—		—		(0.4)	24.9		41.6
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

Balance as of March 31, 2022	51.6	$	78.7	$	483.5	$	(101.4)	$	4,402.6	26.8	$	(2,184.8)	$	2,678.6

Net income	—	—		—		—		301.5		—	—		301.5
Other comprehensive loss, net of tax	—	—		—		(40.8)		—		—	—		(40.8)
Dividends - $0.54 per share	—	—		—		—		(28.0)		—	—		(28.0)
Repurchases of common stock	(0.2)	—		—		—		—		0.2	(50.0)		(50.0)
Issuances and deferrals, net for stock based compensation(1)	0.1	—		7.4		—		—		(0.1)	6.4		13.8
Balance as of June 30, 2022	51.5	$	78.7	$	490.9	$	(142.2)	$	4,676.1	26.9	$	(2,228.4)	$	2,875.1

(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 Statements of Stockholders’ Equity (Unaudited)


	Common Stock			Additional Paid-In Capital		Accumulated Other Comprehensive Income (Loss)		Retained Earnings		Shares in Treasury			Total Stockholders' Equity
(in millions, except per share amounts)	Shares	Amount								Shares	Cost
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

Balance as of December 31, 2021	52.0	$	78.7	$	481.5	$	(105.2)	$	4,237.7	26.4	$	(2,063.2)	$	2,629.5

Net income	—	—		—		—		495.1		—	—		495.1
Other comprehensive loss, net of tax	—	—		—		(37.0)		—		—	—		(37.0)
Dividends - $1.08 per share	—	—		—		—		(56.7)		—	—		(56.7)
Repurchases of common stock	(0.7)	—		—		—		—		0.7	(175.0)		(175.0)
Issuances and deferrals, net for stock-based compensation(1)	0.2	—		9.4		—		—		(0.2)	9.8		19.2
Balance as of June 30, 2022	51.5	$	78.7	$	490.9	$	(142.2)	$	4,676.1	26.9	$	(2,228.4)	$	2,875.1

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, 2021 (the "2021 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.

On February 10, 2022, the Company announced that it had realigned its construction materials businesses into 2 segments organized around its products and applications for the sustainable building envelope. The 2 segments are Carlisle Construction Materials and Carlisle Weatherproofing Technologies. No changes have been made to either of the Company’s other two segments – Carlisle Interconnect Technologies or Carlisle Fluid Technologies. The Company has reclassified certain prior periods' amounts to conform with the current presentation by reportable segment in Note 2—Segment Information, Note 6—Revenue Recognition and Note 8—Exit and Disposal Activities as a result of the Company's change in management structure. Additionally, the Company has reclassified certain prior periods' amounts to conform with the current period presentation of the revenues by geographic area tables in Note 6—Revenue Recognition to present Middle East revenues combined with Asia, as opposed to the previous presentation combined with Africa.

Note 2—Segment Information

The Company reports its results of operations through the following 4 segments, each of which represents a reportable segment as follows:

Carlisle Construction Materials ("CCM")—this segment produces a complete line of premium single-ply roofing products and warranted roof systems and accessories for the commercial building industry, including EPDM, TPO and PVC membrane, polyiso insulation, and engineered metal roofing and wall panel ~~systems.~~systems for commercial and residential buildings.

Carlisle Weatherproofing Technologies ("CWT")—this segment produces building envelope solutions that effectively drive energy efficiency and sustainability in commercial and residential applications. Products include high-performance waterproofing and moisture protection products, protective roofing underlayments, fully integrated liquid and sheet applied air/vapor barriers, sealants/primers and flashing systems, roof coatings and mastics, spray polyurethane foam and coating systems for a wide variety of thermal protection applications and other premium polyurethane products, block-molded expanded polystyrene insulation, engineered products for HVAC applications, and premium rubber products for a variety of industrial and surfacing applications.

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. CIT also provides medical device products and solutions for several medical technology applications.

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.

A summary of segment information follows:


						Three Months Ended June 30,
									2022				2021

(in millions)												(in millions)	Revenues		Operating Income (Loss)		Revenues		Operating Income (Loss)
Carlisle Construction Materials												Carlisle Construction Materials	$	1,113.4	$	358.9	$	722.8	$	155.0
Carlisle Weatherproofing Technologies												Carlisle Weatherproofing Technologies	448.9		59.0		214.5		22.4
Carlisle Interconnect Technologies												Carlisle Interconnect Technologies	212.6		7.9		168.9		(12.9)
Carlisle Fluid Technologies												Carlisle Fluid Technologies	72.0		7.0		71.6		6.6
Segment total												Segment total	1,846.9		432.8		1,177.8		171.1
Corporate, unallocated and eliminations(1)												Corporate, unallocated and eliminations(1)	—		(22.2)		—		(37.3)
Total												Total	$	1,846.9	$	410.6	$	1,177.8	$	133.8

		Three Months Ended March 31,											Six Months Ended June 30,
		2022					2021						2022				2021
(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	$	881.1	$	261.1		$	556.4		$	110.7	Carlisle Construction Materials	$	1,994.5	$	620.0	$	1,279.2	$	265.7
Carlisle Weatherproofing Technologies	Carlisle Weatherproofing Technologies	359.1		37.5			162.9			10.6		Carlisle Weatherproofing Technologies	808.0		96.5		377.4		33.0
Carlisle Interconnect Technologies	Carlisle Interconnect Technologies	185.0		(2.5)			155.8			(10.7)		Carlisle Interconnect Technologies	397.6		5.4		324.7		(23.6)
Carlisle Fluid Technologies	Carlisle Fluid Technologies	71.1		4.8			65.8			4.3		Carlisle Fluid Technologies	143.1		11.8		137.4		10.9
Segment total	Segment total	1,496.3		300.9			940.9			114.9		Segment total	3,343.2		733.7		2,118.7		286.0
Corporate and unallocated(1)	Corporate and unallocated(1)	—		(23.6)			—			(30.2)		Corporate and unallocated(1)	—		(45.8)		—		(67.5)
Total	Total	$	1,496.3	$	277.3		$	940.9		$	84.7	Total	$	3,343.2	$	687.9	$	2,118.7	$	218.5

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

Note 3—Acquisitions

MBTechnology

On February 1, 2022, the Company acquired 100% of the equity of MBTechnology (“MBTech”), for consideration of $26.3 million, including $1.6 million of cash acquired ~~subject to working capital~~ and ~~other customary~~ post-closing ~~adjustments.~~adjustments, which were finalized in the second quarter of 2022. MBTech is a manufacturer of energy-efficient roofing and underlayment systems for residential and commercial applications.

~~For~~In the three months ended June 30, 2022, and for the period from February 1, 2022 to ~~March 31,~~June 30, 2022, the related product lines contributed revenues of ~~$2.0~~$4.1 million and $6.1 million, respectively. The related product lines contributed operating income of $0.1 ~~million.~~million for the period from February 1, 2022 to June 30, 2022. The results of operations of MBTech are reported within the CWT segment.

Consideration of $12.5 million has been allocated to goodwill, none of which is deductible for tax purposes. All of the goodwill was preliminarily assigned to the CCM reporting unit. Consideration of $7.9 million has been allocated to customer relationships, with a useful life of nine years, $3.4 million to plant, property and equipment, $2.8 million to inventory, $0.8 million to accounts receivable and $0.5 million to accounts payable.

ASP Henry Holdings, ~~Inc~~Inc.

On September 1, 2021, the Company acquired ASP Henry Holdings, Inc. (“Henry”), a provider of building envelope systems for consideration of $1,605.6 million, including $34.3 million of cash acquired and post-closing adjustments, which were finalized in the fourth quarter of 2021. The Company funded the acquisition with borrowings from its Revolving Credit Facility (the "Facility") and cash on hand. The Company subsequently repaid the borrowings from the Facility with proceeds from its September 2021 public offering of $300.0 million in aggregate principal amount of its 0.55% senior notes due in September 2023 and $550.0 million in aggregate principal amount of its 2.20% senior notes due in March 2032 (refer to Note 12).

The Henry amounts included in the pro forma financial information below are based on Henry’s historical results and therefore may not be indicative of the actual results if Henry had been owned by the Company on January 1, 2020. The pro forma adjustments represent management’s best estimates based on information available at the time the pro forma information was prepared and may differ from the adjustments that may have been required had the

Company owned Henry on January 1, 2020. Accordingly, pro forma information should not be relied upon as being indicative of the historical results that would have been realized had the acquisition occurred as of January 1, 2020 or the results that may be achieved in the future.

The unaudited combined pro forma financial information presented below includes revenues and income from continuing operations, net of tax, of the Company as if the business combination had occurred on January 1, 2020, based on the purchases price allocation presented below:



~~(in millions)~~	Three Months Ended March 31,
~~Revenues~~	$	~~1,054.6~~
~~Income from continuing operations~~	$	~~49.5~~


	Unaudited Pro Forma
(in millions)	Three Months Ended June 30, 2021		Six Months Ended June 30, 2021
Revenues	$	1,324.3	$	2,378.9
Income from continuing operations	100.5		150.0

The pro forma financial information reflects adjustments to Henry's historical financial information to apply the Company's accounting policies and to reflect the additional depreciation and amortization related to the preliminary fair value adjustments of the acquired net assets of ~~$13.8~~$14.4 million in the three months ended ~~March 31,~~June 30, 2021 and $28.8 million in the six months ended June 30, 2021, together with the associated tax effects.

The following table summarizes the consideration transferred to acquire Henry and the preliminary allocation of the purchase price among the assets acquired and liabilities assumed. The acquisition has been accounted for using the acquisition method of accounting in accordance with Accounting Standards Codification 805, Business Combinations, which requires that consideration be allocated to the acquired assets and assumed liabilities based upon their acquisition date fair values with the remainder allocated to goodwill. The fair values are preliminary and subject to change pending receipt of the final valuation for all acquired assets and liabilities.


		Preliminary Allocation		Measurement Period Adjustments				Preliminary Allocation						Preliminary Allocation				Measurement Period Adjustments				Preliminary Allocation
(in millions)	(in millions)	As of 9/1/2021				As of 3/31/2022		(in millions)				As of 9/1/2021								As of 6/30/2022
Total cash consideration transferred	Total cash consideration transferred	$	1,608.2			$	(2.6)			$	1,605.6		Total cash consideration transferred			$	1,608.2			$	(2.6)			$	1,605.6
Recognized amounts of identifiable assets acquired and liabilities assumed:	Recognized amounts of identifiable assets acquired and liabilities assumed:									Recognized amounts of identifiable assets acquired and liabilities assumed:
Cash and cash equivalents	Cash and cash equivalents	34.3		—				34.3		Cash and cash equivalents				34.3				—				34.3
Receivables, net	Receivables, net	79.0		—				79.0		Receivables, net				79.0				—				79.0
Inventories	Inventories	59.4		(7.9)				51.5		Inventories				59.4				(7.9)				51.5
Prepaid expenses and other current assets	Prepaid expenses and other current assets	10.5		0.5				11.0		Prepaid expenses and other current assets				10.5				0.2				10.7
Property, plant and equipment	Property, plant and equipment	53.6		8.2				61.8		Property, plant and equipment				53.6				8.2				61.8
Definite-lived intangible assets		735.1		446.7				1,181.8
Intangible assets										Intangible assets				735.1				445.9				1,181.0
Other long-term assets	Other long-term assets	3.6		8.3				11.9		Other long-term assets				3.6				8.3				11.9
Accounts payable	Accounts payable	(77.9)		2.1				(75.8)		Accounts payable				(77.9)				2.2				(75.7)
Accrued and other current liabilities	Accrued and other current liabilities	(28.7)		(0.4)				(29.1)		Accrued and other current liabilities				(28.7)				(0.4)				(29.1)
Short-term debt	Short-term debt	(1.0)		—				(1.0)		Short-term debt				(1.0)				—				(1.0)
Contract liabilities	Contract liabilities	(2.6)		—				(2.6)		Contract liabilities				(2.6)				—				(2.6)
Other long-term debt	Other long-term debt	(0.8)		—				(0.8)		Other long-term debt				(0.8)				—				(0.8)
Other long-term liabilities	Other long-term liabilities	(5.9)		(9.8)				(15.7)		Other long-term liabilities				(5.9)				(9.8)				(15.7)
Deferred income taxes	Deferred income taxes	(153.4)		(112.2)				(265.6)		Deferred income taxes				(153.4)				(107.8)				(261.2)
Total identifiable net assets	Total identifiable net assets	705.2		335.5				1,040.7		Total identifiable net assets				705.2				338.9				1,044.1
Goodwill	Goodwill	$	903.0	$	(338.1)			$	564.9	Goodwill				$	903.0			$	(341.5)			$	561.5

The goodwill recognized in the acquisition of Henry is attributable to its significant supply chain efficiencies, other administrative opportunities and the strategic value of the business to Carlisle, in addition to opportunities for product line expansions. The Company acquired $81.9 million of gross contractual accounts receivable, of which $2.9 million was not expected to be collected at the date of acquisition. Goodwill of $50.9 million is tax deductible in the United States. All of the goodwill was preliminarily assigned to the CCM reporting unit.

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)
Customer relationships $ 915.9 18
Technologies 46.5 11
Software 0.1 4
Indefinite-lived trade name 219.3 N/A
Total $ 1,181.8


(in millions)	Fair Value		Weighted Average Useful Life (in years)
Customer relationships	$	914.0	18
Technologies	46.5		11
Software	0.1		4
Indefinite-lived trade name	220.4		N/A
Total	$	1,181.0

The Company has also recorded, as part of the purchase price allocation, deferred tax liabilities primarily related to intangible assets of approximately ~~$265.6~~$261.2 million.

Note 4—Discontinued Operations

On August 2, 2021, the Company completed the sale of the equity interests and assets comprising the Carlisle Brake & Friction ("CBF") segment for gross proceeds of (i) $250 million at closing, subject to certain adjustments, and (ii) the right to receive up to an additional $125 million based on CBF's achievement of certain performance targets. On February 23, 2022, the Company received $125 million in cash for the full amount of the contingent consideration. The sale of CBF 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 ~~for~~follows:


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

Cost of goods sold		76.1			147.4
Other operating expenses, net		11.8			23.8
Operating income		10.9			15.7
Other non-operating (income) expense, net		(0.1)			0.2
Income from discontinued operations before income taxes and loss on sale		11.0			15.5
Pre-close transaction expenses(1)		4.7			4.7
Income from discontinued operations before income taxes		6.3			10.8
Provision for income taxes		1.1			2.5
Income from discontinued operations		$	5.2		$	8.3

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

Income from discontinued operations in the second quarter and the first six months ~~ended March 31, follows:~~

~~(in millions)~~

~~2021~~

~~Revenues~~

~~88.1~~

~~Cost of goods sold~~

~~71.3~~

~~Other operating expenses, net~~

~~12.0~~

~~Operating income~~

~~4.8~~

~~Other non-operating expense, net~~

~~0.3~~

~~Income from discontinued operations before income taxes~~

~~4.5~~

~~Provision for income taxes~~

~~1.4~~

~~Income from discontinued operations~~

~~3.1~~

of 2022 primarily reflects a gain on the sale of real estate associated with the 2021 sale of the equity interests and assets comprising the CBF segment.

A summary of cash flows from discontinued operations included in the Condensed Consolidated Statements of Cash Flows for the ~~three~~six months ended ~~March 31,~~June 30, follows:


(in millions)	(in millions)	2022		2021		(in millions)	2022		2021
Net cash (used in) provided by operating activities	Net cash (used in) provided by operating activities	$	(0.7)	$	3.5	Net cash (used in) provided by operating activities	$	(2.1)	$	10.8
Net cash provided by (used in) investing activities	Net cash provided by (used in) investing activities	125.0		(2.5)		Net cash provided by (used in) investing activities	132.0		(5.6)
Net cash (used in) provided by financing activities(1)	Net cash (used in) provided by financing activities(1)	(124.3)		0.1		Net cash (used in) provided by financing activities(1)	(129.9)		1.8
Change in cash and cash equivalents from discontinued operations	Change in cash and cash equivalents from discontinued operations	$	—	$	1.1	Change in cash and cash equivalents from discontinued operations	$	—	$	7.0

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

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.

Income from continuing operations 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)			2022			2021			(in millions, except per share amounts)		2022			2021			2022			2021
Income from continuing operations	Income from continuing operations			$	194.3		$	49.1		Income from continuing operations		$	295.9		$	94.1		$	490.2		$	143.2
Less: dividends declared	Less: dividends declared			(28.7)			(28.5)			Less: dividends declared		(28.0)			(27.5)			(56.7)			(56.0)
Undistributed earnings	Undistributed earnings			165.6			20.6			Undistributed earnings		267.9			66.6			433.5			87.2
Percent allocated to common stockholders (1)	Percent allocated to common stockholders (1)			99.7		%	99.7		%	Percent allocated to common stockholders (1)		99.7		%	99.7		%	99.7		%	99.7		%
				165.1			20.5
Undistributed earnings allocated to common stockholders										Undistributed earnings allocated to common stockholders		267.2			66.4			432.4			86.9
Add: dividends declared to common shares, restricted share units and vested and deferred restricted and performance shares	Add: dividends declared to common shares, restricted share units and vested and deferred restricted and performance shares			28.7			28.4			Add: dividends declared to common shares, restricted share units and vested and deferred restricted and performance shares		27.9			27.5			56.6			55.9
Income from continuing operations attributable to common stockholders	Income from continuing operations attributable to common stockholders			$	193.8		$	48.9		Income from continuing operations attributable to common stockholders		$	295.1		$	93.9		$	489.0		$	142.8

Shares:	Shares:									Shares:
Basic weighted-average shares outstanding	Basic weighted-average shares outstanding			52.1			53.0			Basic weighted-average shares outstanding		51.8			52.3			52.0			52.7
Effect of dilutive securities:	Effect of dilutive securities:									Effect of dilutive securities:
Performance awards	Performance awards			0.2			0.1			Performance awards		0.2			0.2			0.2			0.1
Stock options	Stock options			0.6			0.5			Stock options		0.5			0.5			0.5			0.5
Diluted weighted-average shares outstanding	Diluted weighted-average shares outstanding			52.9			53.6			Diluted weighted-average shares outstanding		52.5			53.0			52.7			53.3

Per share income from continuing operations 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			$	3.72		$	0.92		Basic		$	5.70		$	1.79		$	9.41		$	2.71
Diluted	Diluted			$	3.67		$	0.91		Diluted		$	5.62		$	1.77		$	9.28		$	2.68

(1)	(1)	Basic weighted-average shares outstanding		52.1			53.0			(1)	Basic weighted-average shares outstanding	51.8			52.3			52.0			52.7
		Basic weighted-average shares outstanding and unvested restricted shares expected to vest		52.3			53.2				Basic weighted-average shares outstanding and unvested restricted shares expected to vest	51.9			52.5			52.1			52.8
		Percent allocated to common stockholders		99.7		%	99.7		%		Percent allocated to common stockholders	99.7		%	99.7		%	99.7		%	99.7		%

To calculate earnings per share for ~~(loss)~~ income from discontinued operations and for net income, the denominator for both basic and diluted earnings per share is the same as used in the above table.


		Three Months Ended March 31,					Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	(in millions)		2022		2021			(in millions)	2022		2021		2022		2021
(Loss) income from discontinued operations attributable to common stockholders for basic and diluted earnings per share			$	(0.7)	$	3.1
Income from discontinued operations attributable to common stockholders for basic and diluted earnings per share								Income from discontinued operations attributable to common stockholders for basic and diluted earnings per share	$	5.6	$	5.2	$	4.9	$	8.3
Net income attributable to common stockholders for basic and diluted earnings per share	Net income attributable to common stockholders for basic and diluted earnings per share		193.1		52.0			Net income attributable to common stockholders for basic and diluted earnings per share	300.8		99.2		493.9		151.1
Anti-dilutive stock options excluded from earnings per share calculation(1)	Anti-dilutive stock options excluded from earnings per share calculation(1)		0.1		0.6			Anti-dilutive stock options excluded from earnings per share calculation(1)	0.2		—		0.2		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 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 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, 2022, follows:


(in millions)	(in millions)	Remainder of 2022		2023		2024		2025		2026		2027		Thereafter		(in millions)	Remainder of 2022		2023		2024		2025		2026		2027		Thereafter
Extended service warranties	Extended service warranties	$	18.2	$	23.0	$	21.9	$	21.0	$	20.0	$	19.0	$	152.1	Extended service warranties	$	12.3	$	23.5	$	22.5	$	21.5	$	20.6	$	19.5	$	159.4

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 and CWT segments, 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)	2022		2021		(in millions)	2022		2021
Balance as of January 1	Balance as of January 1	$	283.9	$	268.3	Balance as of January 1	$	283.9	$	268.3
Revenue recognized	Revenue recognized	(20.0)		(15.2)		Revenue recognized	(38.1)		(32.0)
Revenue deferred	Revenue deferred	25.2		17.9		Revenue deferred	47.9		38.7

Balance as of March 31		$	289.1	$	271.0
Balance as of June 30						Balance as of June 30	$	293.7	$	275.0

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)	2022		2021		(in millions)	2022		2021
Balance as of January 1	Balance as of January 1	$	72.1	$	84.5	Balance as of January 1	$	72.1	$	84.5
Balance as of March 31		73.6		77.1
Balance as of June 30						Balance as of June 30	78.5		71.5
Change in contract assets	Change in contract assets	$	1.5	$	(7.4)	Change in contract assets	$	6.4	$	(13.0)

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, 2022											Three Months Ended June 30, 2022
(in millions)	(in millions)	CCM		CWT		CIT		CFT		Total		(in millions)	CCM		CWT		CIT		CFT		Total
General construction	General construction	$	881.1	$	298.3	$	—	$	—	$	1,179.4	General construction	$	1,113.4	$	368.9	$	—	$	—	$	1,482.3
Aerospace	Aerospace	—		—		83.3		—		83.3		Aerospace	—		—		94.6		—		94.6
Medical	Medical	—		—		64.6		—		64.6		Medical	—		—		78.1		—		78.1
Transportation	Transportation	—		—		—		38.4		38.4		Transportation	—		—		—		39.6		39.6
Heavy equipment	Heavy equipment	—		30.8		—		—		30.8		Heavy equipment	—		27.3		—		—		27.3
General industrial and other	General industrial and other	—		30.0		37.1		32.7		99.8		General industrial and other	—		52.7		39.9		32.4		125.0
Total revenues	Total revenues	$	881.1	$	359.1	$	185.0	$	71.1	$	1,496.3	Total revenues	$	1,113.4	$	448.9	$	212.6	$	72.0	$	1,846.9

		Three Months Ended March 31, 2021											Three Months Ended June 30, 2021
(in millions)	(in millions)	CCM		CWT		CIT		CFT		Total		(in millions)	CCM		CWT		CIT		CFT		Total
General construction	General construction	$	556.4	$	117.7	$	—	$	—	$	674.1	General construction	$	722.8	$	159.1	$	—	$	—	$	881.9
Aerospace	Aerospace	—		—		65.9		—		65.9		Aerospace	—		—		74.0		—		74.0
Medical	Medical	—		—		55.2		—		55.2		Medical	—		—		59.1		—		59.1
Transportation	Transportation	—		—		—		33.8		33.8		Transportation	—		—		—		35.9		35.9
Heavy equipment	Heavy equipment	—		20.3		—		—		20.3		Heavy equipment	—		22.9		—		—		22.9
General industrial and other	General industrial and other	—		24.9		34.7		32.0		91.6		General industrial and other	—		32.5		35.8		35.7		104.0
Total revenues	Total revenues	$	556.4	$	162.9	$	155.8	$	65.8	$	940.9	Total revenues	$	722.8	$	214.5	$	168.9	$	71.6	$	1,177.8


	Six Months Ended June 30, 2022
(in millions)	CCM		CWT		CIT		CFT		Total
General construction	$	1,994.5	$	667.2	$	—	$	—	$	2,661.7
Aerospace	—		—		177.9		—		177.9
Medical	—		—		142.7		—		142.7
Transportation	—		—		—		78.0		78.0
Heavy equipment	—		58.1		—		—		58.1
General industrial and other	—		82.7		77.0		65.1		224.8
Total revenues	$	1,994.5	$	808.0	$	397.6	$	143.1	$	3,343.2

	Six Months Ended June 30, 2021
(in millions)	CCM		CWT		CIT		CFT		Total
General construction	$	1,279.2	$	276.8	$	—	$	—	$	1,556.0
Aerospace	—		—		139.9		—		139.9
Medical	—		—		114.3		—		114.3
Transportation	—		—		—		69.7		69.7
Heavy equipment	—		43.2		—		—		43.2
General industrial and other	—		57.4		70.5		67.7		195.6
Total revenues	$	1,279.2	$	377.4	$	324.7	$	137.4	$	2,118.7

1214

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, 2022											Three Months Ended June 30, 2022
(in millions)	(in millions)	CCM		CWT		CIT		CFT		Total		(in millions)	CCM		CWT		CIT		CFT		Total
United States	United States	$	787.5	$	318.5	$	129.9	$	33.4	$	1,269.3	United States	$	1,009.4	$	403.8	$	150.2	$	36.1	$	1,599.5
International:	International:											International:
Europe	Europe	59.9		5.4		18.2		12.9		96.4		Europe	62.8		5.1		17.5		11.7		97.1
North America (excluding U.S.)	North America (excluding U.S.)	27.6		28.2		10.8		4.5		71.1		North America (excluding U.S.)	32.6		35.9		8.8		3.3		80.6
Asia and Middle East	Asia and Middle East	2.7		2.9		19.3		19.3		44.2		Asia and Middle East	5.0		1.9		27.2		19.5		53.6
Africa	Africa	0.7		2.2		2.7		0.2		5.8		Africa	0.5		0.5		3.2		0.2		4.4
Other	Other	2.7		1.9		4.1		0.8		9.5		Other	3.1		1.7		5.7		1.2		11.7
Total international	Total international	93.6		40.6		55.1		37.7		227.0		Total international	104.0		45.1		62.4		35.9		247.4
Total revenues	Total revenues	$	881.1	$	359.1	$	185.0	$	71.1	$	1,496.3	Total revenues	$	1,113.4	$	448.9	$	212.6	$	72.0	$	1,846.9

		Three Months Ended March 31, 2021											Three Months Ended June 30, 2021
(in millions)	(in millions)	CCM		CWT		CIT		CFT		Total		(in millions)	CCM		CWT		CIT		CFT		Total
United States	United States	$	479.3	$	147.0	$	111.5	$	30.6	$	768.4	United States	$	633.8	$	197.7	$	126.8	$	31.4	$	989.7
International:	International:											International:
Europe	Europe	54.3		6.3		14.4		12.5		87.5		Europe	61.9		2.2		16.3		13.6		94.0
North America (excluding U.S.)	North America (excluding U.S.)	15.4		8.2		4.5		2.5		30.6		North America (excluding U.S.)	22.5		8.7		2.5		2.8		36.5
Asia and Middle East	Asia and Middle East	4.7		1.4		21.9		19.4		47.4		Asia and Middle East	4.4		5.0		20.4		22.3		52.1
Africa	Africa	1.2		—		1.3		0.2		2.7		Africa	0.1		0.9		0.9		0.2		2.1
Other	Other	1.5		—		2.2		0.6		4.3		Other	0.1		—		2.0		1.3		3.4
Total international	Total international	77.1		15.9		44.3		35.2		172.5		Total international	89.0		16.8		42.1		40.2		188.1
Total revenues	Total revenues	$	556.4	$	162.9	$	155.8	$	65.8	$	940.9	Total revenues	$	722.8	$	214.5	$	168.9	$	71.6	$	1,177.8


	Six Months Ended June 30, 2022
(in millions)	CCM		CWT		CIT		CFT		Total
United States	$	1,796.9	$	722.3	$	280.1	$	69.5	$	2,868.8
International:
Europe	122.7		10.5		35.7		24.6		193.5
North America (excluding U.S.)	60.2		64.1		19.6		7.8		151.7
Asia and Middle East	7.7		4.8		46.5		38.8		97.8
Africa	1.2		2.7		5.9		0.4		10.2
Other	5.8		3.6		9.8		2.0		21.2
Total international	197.6		85.7		117.5		73.6		474.4
Total revenues	$	1,994.5	$	808.0	$	397.6	$	143.1	$	3,343.2

	Six Months Ended June 30, 2021
(in millions)	CCM		CWT		CIT		CFT		Total
United States	$	1,113.1	$	344.7	$	238.3	$	62.0	$	1,758.1
International:
Europe	116.2		8.5		30.7		26.1		181.5
North America (excluding U.S.)	37.9		16.9		7.0		5.3		67.1
Asia and Middle East	9.1		6.4		42.3		41.7		99.5
Africa	1.3		0.9		2.2		0.4		4.8
Other	1.6		—		4.2		1.9		7.7
Total international	166.1		32.7		86.4		75.4		360.6
Total revenues	$	1,279.2	$	377.4	$	324.7	$	137.4	$	2,118.7

Note 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,
			2022			2021			(in millions)	2022		2021		2022		2021
Stock option awards	Stock option awards		$	3.1		$	3.6			$	2.3	$	2.3	$	5.4	$	5.9
Restricted stock awards	Restricted stock awards		3.3			2.2			Restricted stock awards	1.7		1.7		5.0		3.9
Performance share awards	Performance share awards		3.2			2.5			Performance share awards	2.2		1.8		5.4		4.3
Stock appreciation rights	Stock appreciation rights		—			3.1			Stock appreciation rights	—		5.9		—		9.0
Total stock-based compensation cost incurred	Total stock-based compensation cost incurred		9.6			11.4			Total stock-based compensation cost incurred	6.2		11.7		15.8		23.1
Capitalized cost during the period	Capitalized cost during the period		—			(3.4)			Capitalized cost during the period	—		(5.9)		—		(9.3)
Amortization of capitalized cost during the period	Amortization of capitalized cost during the period		—			5.5			Amortization of capitalized cost during the period	—		8.8		—		14.3
Total stock-based compensation expense	Total stock-based compensation expense		$	9.6		$	13.5		Total stock-based compensation expense	$	6.2	$	14.6	$	15.8	$	28.1

Note 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.

CIT

During the third quarter of 2021, the Company initiated plans to exit its manufacturing operations in Carlsbad, California, and relocate the majority of those operations to its existing facilities in North America. The project is estimated to take a remaining ~~nine~~six to 12nine months to complete. During the three and six months ended ~~March 31,~~June 30, 2022, exit and disposal costs totaled ~~$0.8~~$0.4 million and $1.2 million, respectively, primarily for employee termination benefit costs and accelerated depreciation. Total exit and disposal costs are expected to approximate ~~$4.6~~$4.8 million, with approximately ~~$2.2~~$2.0 million costs remaining to be incurred, primarily in 2022.

~~The~~In the fourth quarter of 2021, the Company ~~has~~ completed its project to relocate its manufacturing operations in Kent, Washington, as a result of market declines resulting from the COVID-19 pandemic for cumulative exit and disposal costs of $14.2 million. 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.

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,
			2022			2021			(in millions)	2022		2021		2022		2021
Accelerated depreciation and impairments										$	0.7	$	2.1	$	1.3	$	2.1
Employee severance and benefit arrangements	Employee severance and benefit arrangements		$	1.1		$	1.9		Employee severance and benefit arrangements	0.2		3.2		1.3		5.1
Accelerated depreciation and impairments			0.6			—

Facility cleanup costs	Facility cleanup costs		0.1			(1.0)			Facility cleanup costs	0.1		—		0.2		(1.0)
Lease termination costs	Lease termination costs		0.1			—			Lease termination costs	—		—		0.1		—
Relocation costs									Relocation costs	—		0.2		—		0.3
Other restructuring costs	Other restructuring costs		0.3			0.5			Other restructuring costs	0.1		1.1		0.4		1.5
Total exit and disposal costs	Total exit and disposal costs		$	2.2		$	1.4		Total exit and disposal costs	$	1.1	$	6.6	$	3.3	$	8.0

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,
			2022			2021			(in millions)	2022		2021		2022		2021
Carlisle Interconnect Technologies	Carlisle Interconnect Technologies		$	1.9		$	1.3			$	1.1	$	6.6	$	3.0	$	7.9
Carlisle Weatherproofing Technologies	Carlisle Weatherproofing Technologies		0.3			—			Carlisle Weatherproofing Technologies	—		—		0.3		—
Carlisle Fluid Technologies	Carlisle Fluid Technologies		—			0.1			Carlisle Fluid Technologies	—		—		—		0.1

Total exit and disposal costs	Total exit and disposal costs		$	2.2		$	1.4		Total exit and disposal costs	$	1.1	$	6.6	$	3.3	$	8.0

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,
			2022			2021			(in millions)	2022		2021		2022		2021
Cost of goods sold	Cost of goods sold		$	1.9		$	0.8			$	1.0	$	3.6	$	2.9	$	4.4
Selling and administrative expenses	Selling and administrative expenses		0.3			0.6			Selling and administrative expenses	0.1		2.8		0.4		3.4

Research and development expenses									Research and development expenses	—		0.2		—		0.2

Total exit and disposal costs	Total exit and disposal costs		$	2.2		$	1.4		Total exit and disposal costs	$	1.1	$	6.6	$	3.3	$	8.0

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

(in millions)

Total

Balance as of December 31, 2021

6.5

Charges

~~2.2~~3.3

Settlements

~~(6.5)~~(8.3)

Balance as of ~~March 31,~~June 30, 2022

~~2.2~~1.5

The liability of ~~$2.2~~$1.5 million primarily relates to employee severance and benefit arrangements and is included in accrued and other current liabilities.

Note 9—Income Taxes

The effective income tax rate on continuing operations for the ~~three~~six months ended ~~March 31,~~June 30, 2022, was ~~23.7%~~23.5%. The year-to-date provision for income taxes included taxes on earnings at an anticipated rate of ~~23.9%~~23.8% and a tax impact of ~~$0.4~~$1.7 million related to discrete activity.

The effective income tax rate on continuing operations for the ~~three~~six months ended ~~March 31,~~June 30, 2021, was ~~21.3%~~18.8%.

Note 10—Inventories, net


(in millions)	(in millions)	March 31, 2022		December 31, 2021		(in millions)	June 30, 2022		December 31, 2021
Raw materials	Raw materials	$	336.9	$	288.0	Raw materials	$	373.0	$	288.0
Work-in-process	Work-in-process	82.0		76.2		Work-in-process	95.5		76.2
Finished goods	Finished goods	340.3		271.0		Finished goods	344.9		271.0
Reserves	Reserves	(30.3)		(30.1)		Reserves	(32.5)		(30.1)
Inventories, net	Inventories, net	$	728.9	$	605.1	Inventories, net	$	780.9	$	605.1

Note 11—Accrued and Other Current Liabilities


(in millions)	(in millions)	March 31, 2022		December 31, 2021		(in millions)	June 30, 2022		December 31, 2021
Compensation and benefits	Compensation and benefits	$	95.5	$	136.2	Compensation and benefits	$	113.2	$	136.2
Customer incentives	Customer incentives	65.2		97.9		Customer incentives	96.2		97.9
Standard product warranties	Standard product warranties	27.1		26.8		Standard product warranties	25.0		26.8
Income and other accrued taxes	Income and other accrued taxes	17.9		19.4		Income and other accrued taxes	18.6		19.4
Other accrued liabilities	Other accrued liabilities	72.7		70.9		Other accrued liabilities	67.0		70.9
Accrued and other current liabilities	Accrued and other current liabilities	$	278.4	$	351.2	Accrued and other current liabilities	$	320.0	$	351.2

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. 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)	2022		2021		(in millions)	2022		2021
Balance as of January 1	Balance as of January 1	$	26.8	$	30.0	Balance as of January 1	$	26.8	$	30.0
Provision	Provision	3.0		0.5		Provision	4.7		0.1

Claims	Claims	(2.6)		(1.0)		Claims	(6.0)		(2.3)

Foreign exchange	Foreign exchange	(0.1)		(0.3)		Foreign exchange	(0.5)		(0.2)
Balance as of March 31		$	27.1	$	29.2
Balance as of June 30						Balance as of June 30	$	25.0	$	27.6

Note 12—Long-term Debt


(in millions)	(in millions)					Fair Value(1)				(in millions)					Fair Value(1)
		March 31, 2022		December 31, 2021		March 31, 2022		December 31, 2021			June 30, 2022		December 31, 2021		June 30, 2022		December 31, 2021
2.20% Notes due 2032	2.20% Notes due 2032	$	550.0	$	550.0	$	477.5	$	529.7	2.20% Notes due 2032	$	550.0	$	550.0	$	429.4	$	529.7
2.75% Notes due 2030	2.75% Notes due 2030	750.0		750.0		697.6		764.6		2.75% Notes due 2030	750.0		750.0		633.3		764.6
3.75% Notes due 2027	3.75% Notes due 2027	600.0		600.0		610.4		645.8		3.75% Notes due 2027	600.0		600.0		577.9		645.8
3.50% Notes due 2024	3.50% Notes due 2024	400.0		400.0		403.4		419.8		3.50% Notes due 2024	400.0		400.0		396.0		419.8
0.55% Notes due 2023	0.55% Notes due 2023	300.0		300.0		291.2		297.5		0.55% Notes due 2023	300.0		300.0		289.9		297.5
3.75% Notes due 2022	3.75% Notes due 2022	350.0		350.0		352.5		356.2		3.75% Notes due 2022	350.0		350.0		350.5		356.2

Unamortized discount, debt issuance costs and other	Unamortized discount, debt issuance costs and other	(21.2)		(22.6)						Unamortized discount, debt issuance costs and other	(20.1)		(22.6)
Total long term-debt	Total long term-debt	2,928.8		2,927.4						Total long term-debt	2,929.9		2,927.4
Less: current portion of debt	Less: current portion of debt	352.1		352.0						Less: current portion of debt	352.2		352.0
Long term-debt, less current portion	Long term-debt, less current portion	$	2,576.7	$	2,575.4					Long term-debt, less current portion	$	2,577.7	$	2,575.4

(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

During the ~~three~~six months ended ~~March 31,~~June 30, 2022, there were no borrowings or repayments under the Facility. As of ~~March 31,~~June 30, 2022 and December 31, 2021, the Facility had no 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 financial covenants and limitations as of ~~March 31,~~June 30, 2022 and December 31, 2021.

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, 2022 and December 31, 2021, the Company had ~~$18.0~~$18.1 million and $18.9 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 $110.0 million in letters of credit, of which ~~$92.0~~$91.9 million was available for use as of ~~March 31,~~June 30, 2022.

Note 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)		2022		2021			(in millions)	2022		2021		2022		2021
Service cost	Service cost		$	0.6	$	0.7		Service cost	$	0.6	$	0.7	$	1.2	$	1.4
Interest cost	Interest cost		0.8		0.7			Interest cost	0.8		0.7		1.6		1.4
Expected return on plan assets	Expected return on plan assets		(2.4)		(2.4)			Expected return on plan assets	(2.4)		(2.5)		(4.8)		(4.9)
Amortization of unrecognized loss(1)	Amortization of unrecognized loss(1)		1.3		1.6			Amortization of unrecognized loss(1)	1.2		1.6		2.5		3.2
Settlement expense	Settlement expense		0.4		0.4			Settlement expense	0.5		0.5		0.9		0.9
Net periodic benefit cost	Net periodic benefit cost		$	0.7	$	1.0		Net periodic benefit cost	$	0.7	$	1.0	$	1.4	$	2.0

(1)Includes amortization of unrecognized actuarial (gain) loss and prior service credits and excludes provision for income tax of $(0.3) million and ~~$(0.4)~~$(0.6) million for the three and six months ended ~~March 31,~~June 30, 2022, respectively, and $(0.4) million and $(0.8) million for the three and six months ended June 30, 2021, respectively.

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

Note 14—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, 2022				December 31, 2021					June 30, 2022				December 31, 2021
(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	$	2.1	$	90.7	$	2.7	$	127.6	Designated hedges	$	0.7	$	121.7	$	2.7	$	127.6
Non-designated hedges	Non-designated hedges	(0.1)		82.5		0.2		82.5		Non-designated hedges	(0.1)		114.5		0.2		82.5

(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 loss related to foreign currency cash flow hedges was immaterial for the three and six months ended ~~March 31,~~June 30, 2022 and 2021. 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, 2022 and 2021, and are recognized in other non-operating expense, 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 under 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, 2022 and December 31, 2021, the Company had ~~$5.5~~$5.0 million and $5.7 million of cash, respectively, and ~~$9.0~~$7.4 million and $8.1 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, 2022 and December 31, 2021, the Company had ~~$19.8~~$19.7 million and $30.3 million of investment grade bonds, respectively. 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 (loss), until realized, and the associated cash flows presented as investing cash flows.

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 12 for the fair value of long-term debt).

Note 15—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, 2022, 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 2021 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.

Henry has also 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 roofing products produced and sold by Henry and certain of its subsidiaries. Henry is subject to liabilities for indemnity and defense costs associated with these lawsuits. As of ~~March 31,~~June 30, 2022, the Company believes such liabilities are not material to the Company’s financial position, results of operations, or operating cash flows. Henry currently maintains insurance coverage and is the beneficiary of other arrangements which provide coverage with respect to certain asbestos-related claims and associated defense costs. Such insurance policies contain various coverage exclusions, limits of coverage and self-insured retentions and may be subject to insurance coverage disputes.

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.

1820

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 leading supplier of innovative building envelope products and energy-efficient solutions for customers creating sustainable buildings of the future. Through ~~its~~our Carlisle Construction Materials ("CCM") and Carlisle Weatherproofing Technologies ("CWT") businesses and family of leading brands, Carlisle delivers innovative, labor-reducing and environmentally responsible products and solutions to customers across the world through the Carlisle Experience. Over the life of a building, Carlisle’s products help drive lower greenhouse gas emissions, improve energy savings for 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 stockholder returns and maintaining a balanced capital deployment approach, including investments in our businesses, strategic acquisitions, share repurchases and continued dividend increases. Carlisle also is a leading provider of products to the aerospace, medical technologies and general industrial markets through its Carlisle Interconnect Technologies ("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

Carlisle continued our outstanding performance this quarter, especially as we operate in this highly challenging and uncertain environment. Despite these challenges, the Carlisle team continues to live our culture of perseverance, continuous improvement and unwavering focus on delivering results.

As we move ~~into~~past the mid-point of 2022 and reflect on our Vision 2025 strategic plan that we launched in 2018, we are encouraged by our second quarter results. We believe these results clearly demonstrate Carlisle is exceeding expectations and is on pace to achieve much of what we set out to accomplish in Vision 2025, including our goal to deliver $15 of earnings per share.

Achievements in the second quarter included:

•Our pivot to a more concentrated building products platform continued with the first full quarter of ~~2022~~performance for our new CCM and ~~realize~~CWT divisions. Both teams experienced a second quarter marked by strong demand, robust backlogs and solid execution;

•A further reinforcement of our differentiated approach to pricing that reflects the value of the Carlisle Experience, and the benefits of ~~the diminishing effects of the COVID-19 pandemic, we are saddened by the continued humanitarian crisis occurring in Ukraine. While a majority of~~ our business is North American focused, and we have minimal direct exposure to Russia and Ukraine, we are monitoring any broader economic impact from the current crisis, especially on commodities, and geographic proximityproducts that contribute to the ~~rest~~energy efficiency of ~~Europe, where we conduct business. We hope peace~~buildings;

•A continued and ~~resolution will come quickly to the conflict.~~

The entire Carlisle team drove outstanding performance in the first quarter, while navigating continuing and unprecedented demand, supply chain constraints, and industry-wide labor and raw material challenges. CCM and CWT continue to benefit from strong re-roofing demand, solid new construction demand, and a growing push to install energy-efficient solutions. Our teams continue to secure raw materials, appropriately staff at all levels, and strive to meet our customers' expectations. Our goal is to always deliver the Carlisle Experience. Our proactive and value-addeddisciplined approach to pricing enabled us to neutralize the effects of significant raw material inflation last year and offset continued pressures we experienced in the first quarter, which we expect will persist throughout 2022. The integration ofcapital allocation, including acquisitions, highlighted by ASP Henry Holdings, Inc. ("Henry"), which continues to exceed expectations and deliver on our synergy ~~commitments. Additionally, CIT's backlog continues to grow, driven by the recertification and accelerating deliveries~~commitments of ~~the 737 MAX, the anticipated resumption of 787 deliveries later this year, and improved capital spending in medical markets.~~$30 million;

~~Our pivot towards our highest returning building products businesses that began in 2017 continues to prove to be the right strategic direction for Carlisle, which is reflected~~•Investing in our ~~record first quarter sales and profits. We have invested $1.2 billion over the past decade~~businesses to expand capacity, drive innovation, and develop world-class ~~processes without~~capabilities, including:

◦Ongoing construction of our state-of-the-art polyiso insulation facility built to LEED specifications in Sikeston, Missouri, which is on track to be operational in the second quarter of 2023; and

◦Launching of our ~~record results would not be possible.~~6th TPO line in Carlisle, Pennsylvania, which, in September, will introduce to the market an industry-first 16-foot-wide TPO membrane, and is expected to result in significant labor savings, improved installation quality and less packaging waste for our installers;

~~Our business model continues~~•A continued commitment to ~~follow environmental, social and governance ("ESG") trends as our~~the introduction of new products, ~~enable a more efficient usage~~which accounted for over $100 million of ~~energy by buildings. We continue to make progress toward our goal of delivering a net zero commitment~~revenues in ~~2022.~~the second quarter;

~~We remain committed to superior capital allocation, which includes returning capital to stockholders.~~ In the first ~~quarter~~six months of 2022, we returned ~~$28.7~~$56.7 million in the form of ~~dividends. We also~~dividends, continuing our 45 year trend of continuous and annually increasing dividends, and repurchased ~~$125.0~~$175.0 million of shares, ~~bringing~~adding to our cumulative share repurchases since 2017 of nearly $2 billion.

Vision 2025 continues to ~~over $1.9 billion, driving~~provide the Carlisle team with the clarity to navigate a ~~19.5% net reduction in our shares outstanding.~~

~~With demand accelerating across our businesses,~~complex and ~~our new segment structure in place~~rapidly evolving environment, a culture of continuous improvement, and a drive to ~~focus~~employ and develop the best talent, all the while ensuring our teams ~~Carlisle is well positioned~~know who we are and what we are trying to ~~drive continued profitable growth in~~achieve. Our outlook remains optimistic for the rest of 2022 and ~~deliver Vision 2025.~~the long term.

1921

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)		2022			2021			(in millions, except per share amounts)	2022			2021			2022			2021
Revenues	Revenues		$	1,496.3		$	940.9		Revenues	$	1,846.9		$	1,177.8		$	3,343.2		$	2,118.7
Operating income	Operating income		$	277.3		$	84.7		Operating income	$	410.6		$	133.8		$	687.9		$	218.5
Operating margin	Operating margin		18.5		%	9.0		%	Operating margin	22.2		%	11.4		%	20.6		%	10.3		%
Income from continuing operations	Income from continuing operations		$	194.3		$	49.1		Income from continuing operations	$	295.9		$	94.1		$	490.2		$	143.2
(Loss) income from discontinued operations			$	(0.7)		$	3.1
Income from discontinued operations									Income from discontinued operations	$	5.6		$	5.2		$	4.9		$	8.3
Diluted earnings per share attributable to common shares:	Diluted earnings per share attributable to common shares:								Diluted earnings per share attributable to common shares:
Income from continuing operations	Income from continuing operations		$	3.67		$	0.91		Income from continuing operations	$	5.62		$	1.77		$	9.28		$	2.68
(Loss) income from discontinued operations			$	(0.01)		$	0.06
Income from discontinued operations									Income from discontinued operations	$	0.11		$	0.10		$	0.09		$	0.16

Adjusted EBITDA(1)	Adjusted EBITDA(1)		$	344.8		$	137.8		Adjusted EBITDA(1)	$	472.2		$	191.7		$	817.0		$	329.5
Adjusted EBITDA margin(1)	Adjusted EBITDA margin(1)		23.0		%	14.6		%	Adjusted EBITDA margin(1)	25.6		%	16.3		%	24.4		%	15.6		%

(1)Adjusted EBITDA and adjusted EBITDA margin are intended to provide investors and others with information about Carlisle 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. Refer to Non-GAAP Financial Measures in this MD&A for more information about, and a detailed reconciliation of these items.

Revenues increased in the second quarter and the first ~~quarter~~six months of 2022 primarily reflecting ~~price realization~~positive pricing and higher volumes in all segments and contributions from the acquisition of Henry in the CWT segment, partially offset by unfavorable foreign currency impacts.

The increase in operating margin percentage in the second quarter and the first ~~quarter~~six months of 2022 primarily reflected ~~price realization,~~positive pricing, higher volumes and ~~savings from the Carlisle Operating System ("COS"),~~favorable product mix, partially offset by raw material and wage inflation across all segments.

Diluted earnings per share from continuing operations increased primarily ~~due to~~reflecting improved operating income performance ($~~2.72~~3.93 per share in the second quarter of 2022 and $6.64 per share in the first ~~quarter~~six months of 2022) and reduced average shares outstanding ($~~0.05~~0.06 per share in the second quarter of 2022 and $0.11 per share in the first ~~quarter~~six months of 2022) resulting from purchases under our share repurchase program, partially offset by a higher effective tax rate ($~~0.03~~0.08 per share in the second quarter of 2022 and $0.10 per share in the first six months of 2022) and higher interest expense ($0.05 per share in the second quarter of 2022 and $0.09 per share in the first six months of 2022).

We generated ~~$44.3~~$223.5 million in operating cash flow in the first ~~three~~six months of 2022 and utilized cash on hand and cash provided by operations to return capital to stockholders through dividends and share repurchases, and to fund capital expenditures.

Consolidated Results of Operations

Revenues


(in millions)	(in millions)	2022		2021		Change		%		Acquisition Effect		Price / Volume Effect		Exchange Rate Effect		(in millions)	2022		2021		Change		%		Acquisition Effect		Price / Volume Effect		Exchange Rate Effect

Three months ended March 31		$	1,496.3	$	940.9	$	555.4	59.0	%	14.7	%	44.8	%	(0.5)	%
Three months ended June 30																Three months ended June 30	$	1,846.9	$	1,177.8	$	669.1	56.8	%	15.5	%	42.2	%	(0.9)	%
Six months ended June 30																Six months ended June 30	$	3,343.2	$	2,118.7	$	1,224.5	57.8	%	15.1	%	43.4	%	(0.7)	%

Revenues increased in the second quarter and the first ~~quarter~~six months of 2022 primarily reflecting ~~price realization~~positive pricing and higher sales volumes across all segments and contributions from the acquisition of Henry in the CWT segment, partially offset by unfavorable foreign currency impacts.

Gross Margin


(in millions)	(in millions)	Three Months Ended March 31,				(in millions)			Three Months Ended June 30,									Six Months Ended June 30,
			2022				2021			Change		%		(in millions)	2022			2021			Change		%		2022			2021			Change		%
Gross margin	Gross margin		$	490.9			$	244.9		$	246.0	100.4	%		$	632.0		$	307.7		$	324.3	105.4	%	$	1,122.9		$	552.6		$	570.3	103.2	%
Gross margin percentage	Gross margin percentage		32.8		%		26.0		%					Gross margin percentage	34.2		%	26.1		%					33.6		%	26.1		%
Depreciation and amortization	Depreciation and amortization		$	27.0			$	24.6						Depreciation and amortization	$	25.4		$	24.1						$	52.4		$	48.7

Gross margin percentage (gross margin expressed as a percentage of revenues) increased in the second quarter and the first ~~quarter~~six months of 2022, driven by ~~price realization~~positive pricing and higher volumes, partially offset by raw material and wage inflation. Also included in cost of goods sold were exit and disposal costs totaling ~~$1.9~~$1.0 million and $2.9 million for the second quarter and the first ~~quarter~~six months of 2022, respectively, primarily

at CIT attributable to our restructuring initiatives, compared with ~~$0.8~~$3.6 million and $4.4 million for the second quarter and the first ~~quarter~~six months of ~~2021.~~2021, respectively. Refer to Note 8 for further information on exit and disposal activities.

Selling and Administrative Expenses


(in millions)	(in millions)	Three Months Ended March 31,				(in millions)			Three Months Ended June 30,									Six Months Ended June 30,
			2022				2021			Change		%		(in millions)	2022			2021			Change		%		2022			2021			Change		%
Selling and administrative expenses	Selling and administrative expenses		$	203.0			$	150.8		$	52.2	34.6	%		$	210.6		$	161.3		$	49.3	30.6	%	$	413.6		$	312.1		$	101.5	32.5	%
As a percentage of revenues	As a percentage of revenues		13.6		%		16.0		%					As a percentage of revenues	11.4		%	13.7		%					12.4		%	14.7		%
Depreciation and amortization	Depreciation and amortization		$	37.3			$	24.2						Depreciation and amortization	$	36.3		$	25.0						$	73.6		$	49.2

The increase in selling and administrative expenses in the second quarter and the first ~~quarter~~six months of 2022 primarily reflected incremental costs in the CWT segment from the addition of Henry, higher incentive compensation costs and wage inflation. Also included in selling and administrative expenses were exit and disposal costs totaling ~~$0.3~~$0.1 million and $0.4 million for the second quarter and the first ~~quarter~~six months of 2022, respectively, primarily at CIT attributable to our restructuring initiatives, compared with ~~$0.6~~$2.8 million and $3.4 million for the second quarter and the first ~~quarter~~six months of ~~2021.~~2021, respectively. Refer to Note 8 for further information on exit and disposal activities.

Research and Development Expenses


(in millions)	(in millions)	Three Months Ended March 31,				(in millions)			Three Months Ended June 30,									Six Months Ended June 30,
			2022				2021			Change		%		(in millions)	2022			2021			Change		%		2022			2021			Change		%
Research and development expenses	Research and development expenses		$	12.3			$	10.4		$	1.9	18.3	%		$	12.6		$	13.8		$	(1.2)	(8.7)	%	$	24.9		$	24.2		$	0.7	2.9	%
As a percentage of revenues	As a percentage of revenues		0.8		%		1.1		%					As a percentage of revenues	0.7		%	1.2		%					0.7		%	1.1		%
Depreciation and amortization	Depreciation and amortization		$	0.4			$	0.5						Depreciation and amortization	$	0.8		$	0.4						$	1.2		$	0.9

Research and development expenses were lower in the second quarter of 2022, primarily reflecting lower new product development expenses at our CIT segment. Research and development expenses were higher in the first ~~quarter~~six months of 2022, ~~compared with the 2021,~~ primarily reflecting higher new product development expenses at our ~~CIT and~~ CWT ~~segments.~~segment.

Other Operating Income, net


(in millions)	(in millions)	Three Months Ended March 31,			(in millions)			Three Months Ended June 30,								Six Months Ended June 30,
			2022			2021			Change		%		(in millions)	2022		2021		Change		%		2022		2021		Change		%
Other operating income, net	Other operating income, net		$	(1.7)		$	(1.0)		$	(0.7)	70.0	%		$	(1.8)	$	(1.2)	$	(0.6)	50.0	%	$	(3.5)	$	(2.2)	$	(1.3)	59.1	%

Other operating income, net in the ~~first quarter of~~ 2022 periods primarily reflected ~~$1.0~~rebates ($1.2 million ~~of rebates~~in the second-quarter and ~~$0.5~~$2.2 million ofin the first six months) and royalty ~~income.~~ income ($0.5 million in the second quarter and $0.9 million in the first six months).

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

Operating Income


(in millions)	(in millions)	Three Months Ended March 31,				(in millions)			Three Months Ended June 30,									Six Months Ended June 30,
			2022				2021			Change		%		(in millions)	2022			2021			Change		%		2022			2021			Change		%
Operating income	Operating income		$	277.3			$	84.7		$	192.6	227.4	%		$	410.6		$	133.8		$	276.8	206.9	%	$	687.9		$	218.5		$	469.4	214.8	%
Operating margin percentage	Operating margin percentage		18.5		%		9.0		%					Operating margin percentage	22.2		%	11.4		%					20.6		%	10.3		%

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

Interest Expense, net


(in millions)	(in millions)	Three Months Ended March 31,			(in millions)			Three Months Ended June 30,								Six Months Ended June 30,
			2022			2021			Change		%		(in millions)	2022		2021		Change		%		2022		2021		Change		%
Interest expense, net	Interest expense, net		$	22.6		$	19.2		$	3.4	17.7	%		$	22.4	$	19.2	$	3.2	16.7	%	$	45.0	$	38.4	$	6.6	17.2	%

Interest expense, net of capitalized interest, increased in the second quarter and the first ~~quarter~~six months of 2022 primarily reflecting higher long-term debt balances associated with our public offering of $550.0 million of 2.20% unsecured senior notes and $300.0 million of 0.55% unsecured senior notes completed in September 2021. Refer to Note 12 for further information on our long-term debt.

Interest Income


(in millions)	(in millions)	Three Months Ended March 31,			(in millions)			Three Months Ended June 30,								Six Months Ended June 30,
			2022			2021			Change		%		(in millions)	2022		2021		Change		%		2022		2021		Change		%
Interest income	Interest income		$	(0.2)		$	(0.5)		$	0.3	(60.0)	%		$	(0.6)	$	(0.4)	$	(0.2)	50.0	%	$	(0.8)	$	(0.9)	$	0.1	(11.1)	%

Interest income ~~decreased~~increased during the ~~first~~second quarter of 2022 primarily reflecting ~~lower cash balances and lower~~higher yields.

Other Non-operating Expense, net


(in millions)	(in millions)	Three Months Ended March 31,			(in millions)			Three Months Ended June 30,							Six Months Ended June 30,
			2022			2021			Change		%	(in millions)	2022		2021		Change		%	2022		2021		Change		%
Other non-operating expense, net	Other non-operating expense, net		$	0.1		$	3.6		$	(3.5)	NM		$	2.5	$	1.1	$	1.4	NM	$	2.6	$	4.7	$	(2.1)	NM

Other non-operating expense, net, in the second quarter and the first six months of 2022 primarily reflected unrealized losses on Rabbi Trust investments and changes in foreign currencies against the U.S. Dollar.

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

Income Taxes


(in millions)	(in millions)	Three Months Ended March 31,				(in millions)			Three Months Ended June 30,									Six Months Ended June 30,
			2022				2021			Change		%		(in millions)	2022			2021			Change		%		2022			2021			Change		%
Provision for income taxes	Provision for income taxes		$	60.5			$	13.3		$	47.2	354.9	%		$	90.4		$	19.8		$	70.6	356.6	%	$	150.9		$	33.1		$	117.8	355.9	%
Effective tax rate	Effective tax rate		23.7		%		21.3		%					Effective tax rate	23.4		%	17.4		%					23.5		%	18.8		%

The effective income tax rate on continuing operations for the first ~~quarter~~six months of 2022 was ~~23.7%~~23.5%. The year-to-date provision for income taxes included taxes on earnings at an anticipated rate of ~~23.9%~~23.8% and a tax impact of ~~$0.4~~$1.7 million related to discrete activity.

The effective income tax rate on continuing operations for the first ~~quarter~~six months of 2021 was ~~21.3%~~18.8%.

~~(Loss)~~

Income from Discontinued Operations
(in millions) Three Months Ended March 31,
2022 2021 Change %
(Loss) income from discontinued operations before income taxes $ (0.7) $ 4.5 $ (5.2) NM
Provision for income taxes — 1.4
(Loss) income from discontinued operations $ (0.7) $ 3.1


(in millions)	Three Months Ended June 30,							Six Months Ended June 30,
	2022		2021		Change		%	2022		2021		Change		%
Income from discontinued operations before income taxes	$	4.8	$	6.3	$	(1.5)	NM	$	4.1	$	10.8	$	(6.7)	NM
(Benefit from) provision for income taxes	(0.8)		1.1					(0.8)		2.5
Income from discontinued operations	$	5.6	$	5.2				$	4.9	$	8.3

~~Loss~~Income from discontinued operations in the second quarter and the first ~~quarter~~six months of 2022 primarily reflects ~~transaction expenses~~a gain on the sale of real estate associated with the 2021 sale of the equity interests and assets comprising the Carlisle Brake & Friction ("CBF") segment. Income from discontinued operations in the second quarter and the first ~~quarter~~six months of 2021 reflects the operating results from the CBF ~~segment.~~segment, partially offset by pre-closing transaction expenses.

Segment Results of Operations

Carlisle Construction Materials

This segment produces a complete line of premium energy-efficient single-ply roofing products and warranted roof systems and accessories for the commercial building industry, including EPDM, TPO and PVC membrane, polyiso insulation, and engineered metal roofing and wall panel ~~systems.~~systems for commercial and residential buildings.

(in millions) Three Months Ended March 31, Acquisition Effect Price / Volume Effect Exchange Rate Effect
2022 2021 Change %
Revenues $ 881.1 $ 556.4 $ 324.7 58.4 % — % 58.9 % (0.5) %
Operating income $ 261.1 $ 110.7 $ 150.4 135.9 %
Operating margin 29.6 % 19.9 %
Adjusted EBITDA(1)
$ 275.3 $ 123.9 $ 151.4 122.2 %
Adjusted EBITDA margin(1)
31.2 % 22.3 %


(in millions)	Three Months Ended June 30,										Acquisition Effect		Price / Volume Effect		Exchange Rate Effect
	2022			2021			Change		%
Revenues	$	1,113.4		$	722.8		$	390.6	54.0	%	—	%	54.9	%	(0.9)	%
Operating income	$	358.9		$	155.0		$	203.9	131.5	%
Operating margin	32.2		%	21.4		%
Adjusted EBITDA(1)	$	371.3		$	168.3		$	203.0	120.6	%
Adjusted EBITDA margin(1)	33.3		%	23.3		%


(in millions)	Six Months Ended June 30,										Acquisition Effect		Price / Volume Effect		Exchange Rate Effect
	2022			2021			Change		%
Revenues	$	1,994.5		$	1,279.2		$	715.3	55.9	%	—	%	56.6	%	(0.7)	%
Operating income	$	620.0		$	265.7		$	354.3	133.3	%
Operating margin	31.1		%	20.8		%
Adjusted EBITDA(1)	$	646.6		$	292.2		$	354.4	121.3	%
Adjusted EBITDA margin(1)	32.4		%	22.8		%

CCM’s revenue increased in the second quarter and the first ~~quarter~~six months of 2022 primarily reflecting ~~price realization~~positive pricing across all product lines and ~~higher volumes from~~the strength inof U.S. commercial roofing demand.

CCM’s operating margin and adjusted EBITDA margin increase in the second quarter and the first ~~quarter~~six months of 2022 primarily reflected ~~price realization,~~positive pricing, higher volumes, ~~improved~~favorable product mix, and savings from ~~COS,~~Carlisle Operating System ("COS"), partially offset by raw material, freight and wage inflation.

Carlisle Weatherproofing Technologies

This segment produces building envelope solutions that effectively drive energy efficiency and sustainability in commercial and residential applications. Products include high-performance waterproofing and moisture protection products, protective roofing underlayments, fully integrated liquid and sheet applied air/vapor barriers, sealants/primers and flashing systems, roof coatings and mastics, spray polyurethane foam and coating systems for a wide variety of thermal protection applications and other premium polyurethane products, block-molded expanded polystyrene insulation, engineered products for HVAC applications, and premium rubber products for a variety of industrial and surfacing applications.

(in millions) Three Months Ended March 31, Acquisition Effect Price / Volume Effect Exchange Rate Effect
2022 2021 Change %
Revenues $ 359.1 $ 162.9 $ 196.2 120.4 % 84.7 % 36.0 % (0.3) %
Operating income $ 37.5 $ 10.6 $ 26.9 253.8 %
Operating margin 10.4 % 6.5 %
Adjusted EBITDA(1)
$ 63.1 $ 20.9 $ 42.2 201.9 %
Adjusted EBITDA margin(1)
17.6 % 12.8 %


(in millions)	Three Months Ended June 30,										Acquisition Effect		Price / Volume Effect		Exchange Rate Effect
	2022			2021			Change		%
Revenues	$	448.9		$	214.5		$	234.4	109.3	%	85.3	%	24.4	%	(0.4)	%
Operating income	$	59.0		$	22.4		$	36.6	163.4	%
Operating margin	13.1		%	10.4		%
Adjusted EBITDA(1)	$	83.5		$	32.9		$	50.6	153.8	%
Adjusted EBITDA margin(1)	18.6		%	15.3		%


(in millions)	Six Months Ended June 30,										Acquisition Effect		Price / Volume Effect		Exchange Rate Effect
	2022			2021			Change		%
Revenues	$	808.0		$	377.4		$	430.6	114.1	%	85.0	%	29.4	%	(0.3)	%
Operating income	$	96.5		$	33.0		$	63.5	192.4	%
Operating margin	11.9		%	8.7		%
Adjusted EBITDA(1)	$	146.6		$	53.8		$	92.8	172.5	%
Adjusted EBITDA margin(1)	18.1		%	14.3		%

CWT’s revenue increased in the second quarter and the first ~~quarter~~six months of 2022 primarily reflecting ~~price realization, higher volumes and~~ contributions from the Henry ~~acquisition.~~acquisition, positive pricing and strength across all our product lines.

CWT’s operating margin and adjusted EBITDA margin increase in the second quarter and the first ~~quarter~~six months of 2022 primarily reflected ~~price realization, higher volumes and~~positive pricing, contributions from the Henry acquisition, higher volumes, favorable product mix and savings from COS, partially offset by raw material, freight and wage inflation. ~~CWT's operating margin also reflected amortization of intangible assets from the Henry acquisition.~~

Carlisle Interconnect Technologies

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. CIT also provides medical device products and solutions for several medical technology applications.

During the third quarter of 2021, we announced the closure of our manufacturing operations in Carlsbad, California, and the relocation of those operations to our existing facilities in North America. The project is estimated to take a remaining ~~nine~~six to 12nine months to complete. Total projected costs are expected to approximate $5.8 million, with approximately ~~$3.0~~$2.6 million costs remaining to be incurred.

(in millions) Three Months Ended March 31, Acquisition Effect Price / Volume Effect Exchange Rate Effect
2022 2021 Change %
Revenues $ 185.0 $ 155.8 $ 29.2 18.7 % — % 18.7 % — %
Operating loss $ (2.5) $ (10.7) $ 8.2 76.6 %
Operating margin (1.4) % (6.9) %
Adjusted EBITDA(1)
$ 18.4 $ 11.0 $ 7.4 67.3 %
Adjusted EBITDA margin(1)
9.9 % 7.1 %


(in millions)	Three Months Ended June 30,										Acquisition Effect		Price / Volume Effect		Exchange Rate Effect
	2022			2021			Change		%
Revenues	$	212.6		$	168.9		$	43.7	25.9	%	—	%	26.1	%	(0.2)	%
Operating income (loss)	$	7.9		$	(12.9)		$	20.8	NM
Operating margin	3.7		%	(7.6)		%
Adjusted EBITDA(1)	$	27.0		$	13.5		$	13.5	100.0	%
Adjusted EBITDA margin(1)	12.7		%	8.0		%


(in millions)	Six Months Ended June 30,										Acquisition Effect		Price / Volume Effect		Exchange Rate Effect
	2022			2021			Change		%
Revenues	$	397.6		$	324.7		$	72.9	22.5	%	—	%	22.5	%	—	%
Operating income (loss)	$	5.4		$	(23.6)		$	29.0	NM
Operating margin	1.4		%	(7.3)		%
Adjusted EBITDA(1)	$	45.4		$	24.5		$	20.9	85.3	%
Adjusted EBITDA margin(1)	11.4		%	7.5		%

(1)Adjusted EBITDA and adjusted EBITDA margin is intended to provide investors and others with information about Carlisle'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. Refer to Non-GAAP Financial Measures in this MD&A for more information about, and a detailed reconciliation of these items.

~~CIT's~~CIT’s revenue increased in the second quarter and the first ~~quarter~~six months of 2022 primarily ~~reflecting higher volumes, as recovery has begun in the commercial~~reflected continued strengthening of aerospace ~~market,~~ and ~~price realization.~~medical end markets.

CIT’s operating margin and adjusted EBITDA margin ~~improvement~~increase in the second quarter and the first ~~quarter~~six months of 2022 ~~was driven by~~primarily reflected higher volumes, positive pricing, and savings from COS, ~~and lower travel and other administrative costs,~~ partially offset by raw material and wage inflation, unfavorable ~~foreign currency impacts~~product mix and ~~unfavorable mix.~~higher operating expenses.

Carlisle Fluid Technologies

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.


(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
		2022			2021			Change		%									2022			2021			Change		%
Revenues	Revenues	$	71.1		$	65.8		$	5.3	8.1	%	—	%	9.9	%	(1.8)	%	Revenues	$	72.0		$	71.6		$	0.4	0.6	%	—	%	5.5	%	(4.9)	%
Operating income	Operating income	$	4.8		$	4.3		$	0.5	11.6	%							Operating income	$	7.0		$	6.6		$	0.4	6.1	%
Operating margin	Operating margin	6.8		%	6.5		%											Operating margin	9.7		%	9.2		%
Adjusted EBITDA(1)	Adjusted EBITDA(1)	$	10.5		$	10.2		$	0.3	2.9	%							Adjusted EBITDA(1)	$	12.2		$	11.4		$	0.8	7.0	%
Adjusted EBITDA margin(1)	Adjusted EBITDA margin(1)	14.8		%	15.5		%											Adjusted EBITDA margin(1)	16.9		%	15.9		%


(in millions)	Six Months Ended June 30,										Acquisition Effect		Price / Volume Effect		Exchange Rate Effect
	2022			2021			Change		%
Revenues	$	143.1		$	137.4		$	5.7	4.1	%	—	%	7.5	%	(3.4)	%
Operating income	$	11.8		$	10.9		$	0.9	8.3	%
Operating margin	8.2		%	7.9		%
Adjusted EBITDA(1)	$	22.7		$	21.6		$	1.1	5.1	%
Adjusted EBITDA margin(1)	15.9		%	15.7		%

~~CFT's~~

CFT’s revenue ~~increased~~increase in the second quarter and the first ~~quarter~~six months of 2022 ~~reflecting increased volumes, particularly in the transportation end market, and price realization,~~primarily reflected positive pricing, partially offset by unfavorable changes in foreign currency ~~impacts.~~rates.

CFT’s operating margin ~~performance improved for~~and adjusted EBITDA margin increase in the second quarter and the first ~~quarter~~six months of 2022 ~~reflecting price realization, higher volumes, lower restructuring expenses,~~primarily reflected positive pricing and savings from COS, partially offset by raw material and wage ~~and freight inflation and unfavorable mix.~~inflation.

CFT’s adjusted EBITDA margin decreased in the first quarter of 2022, reflecting higher raw material, wage and freight inflation and unfavorable mix, partially offset by price realization, higher volumes, and savings from COS.

Liquidity and Capital Resources

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


(in millions)	(in millions)	March 31, 2022		December 31, 2021		(in millions)	June 30, 2022		December 31, 2021
Europe	Europe	$	77.3	$	12.3	Europe	$	65.1	$	12.3
North America (excluding U.S.)	North America (excluding U.S.)	29.8		40.8		North America (excluding U.S.)	36.3		40.8
China	China	21.9		17.8		China	24.1		17.8
Asia Pacific (excluding China)	Asia Pacific (excluding China)	22.0		12.9		Asia Pacific (excluding China)	35.5		12.9

International cash and cash equivalents	International cash and cash equivalents	151.0		83.8		International cash and cash equivalents	161.0		83.8
U.S. cash and cash equivalents	U.S. cash and cash equivalents	140.7		240.6		U.S. cash and cash equivalents	192.2		240.6
Total cash and cash equivalents	Total cash and cash equivalents	$	291.7	$	324.4	Total cash and cash equivalents	$	353.2	$	324.4

We maintain liquidity sources primarily consisting of cash and cash equivalents as well as availability under the Company's Fourth Amended and Restated Credit Agreement (as amended, the "Facility"). In the near term, cash on hand is our primary source of liquidity. The ~~decrease~~increase in cash and cash equivalents compared to December 31, 2021, is primarily related to ~~share repurchases, payment of dividends to stockholders~~cash generated from operations and ~~capital expenditures, partially offset by~~ the receipt of the $125 million earn out payment from the sale of ~~CBF.~~CBF, partially offset by share repurchases, capital expenditures and payment of dividends to stockholders.

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 Canada and China, we may be subject to withholding taxes, and as such we have accrued ~~$10.4~~$7.9 million in anticipation of those taxes as of ~~March 31,~~June 30, 2022.

We believe we have sufficient cash on hand, availability under the Facility and operating cash flows to meet our anticipated 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, availability under the Facility and operating cash flows to meet our anticipated long-term business requirements and 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 for a variety of reasons, including to repay the outstanding balances of our outstanding ~~debt.~~debt and fund acquisitions. Refer to Note 12.

Sources and Uses of Cash and Cash Equivalents


		Three Months Ended March 31,					Six Months Ended June 30,
(in millions)	(in millions)	2022		2021		(in millions)	2022		2021
Net cash provided by operating activities	Net cash provided by operating activities	$	44.3	$	67.6	Net cash provided by operating activities	$	223.5	$	171.5
Net cash provided by (used in) investing activities	Net cash provided by (used in) investing activities	81.2		(28.4)		Net cash provided by (used in) investing activities	36.9		(63.5)
Net cash used in financing activities	Net cash used in financing activities	(158.8)		(172.8)		Net cash used in financing activities	(229.9)		(284.5)
Effect of foreign currency exchange rate changes on cash	Effect of foreign currency exchange rate changes on cash	0.6		(1.4)		Effect of foreign currency exchange rate changes on cash	(1.7)		(0.3)
Change in cash and cash equivalents	Change in cash and cash equivalents	$	(32.7)	$	(135.0)	Change in cash and cash equivalents	$	28.8	$	(176.8)

Operating Activities

We generated operating cash flows of ~~$44.3~~$223.5 million for the first ~~three months of~~six months of 2022 (including working capital uses of ~~$229.9~~$415.8 million), compared with ~~$67.6~~$171.5 million for the first ~~three months of~~six months of 2021 (including working capital uses of ~~$54.0~~$103.9 million). ~~Lower~~Higher operating cash flows infor the first ~~the first three months of~~six months of 2022 primarily reflected higher net income, partially offset by higher working capital uses related to an increase in receivables from higher sales and an

increase in inventory from rising raw material costs and increased volume, partially offset by higher payables due to rising raw material costs.

Investing Activities

Cash provided by investing activities of ~~$81.2~~$36.9 million for the first ~~three months of~~six months of 2022 primarily reflected the proceeds of the contingent consideration from the earn out payment and sale of real estate associated with the 2021 sale of CBF of ~~$125.0~~$132.0 million and proceeds from investment in securities of $10.3 million, partially offset by capital expenditures of ~~$31.1~~$82.7 million and the acquisition of MBTechnology for $24.7 million. Cash used in investing activities of ~~$28.4~~$63.5 million for the first ~~three months of~~six months of 2021 primarily reflected capital expenditures of ~~$20.0~~$55.1 million and investment in securities of $10.2 million.

Financing Activities

Cash used in financing activities of ~~$158.8~~$229.9 million in the first ~~three months of~~six months of 2022 primarily reflected share repurchases of ~~$125.0~~$175.0 million and cash dividend payments of ~~$28.7~~$56.7 million, reflecting the increased quarterly dividend of $0.54 per share. Cash used in financing activities of ~~$172.8~~$284.5 million during the first ~~three months of~~six months of 2021 primarily reflected share repurchases of ~~$150.0~~$265.6 million and dividend payments of ~~$28.4~~$56.0 million.

Debt Instruments

Senior Notes

We have unsecured senior notes outstanding of $350.0 million due November 15, 2022 (at a stated interest rate of 3.75%). We anticipate using cash on hand, availability under the Facility and operating cash flows as potential sources to repay these notes upon maturity.

Revolving Credit Facility

During the first ~~three months of~~six months of 2022 and 2021, we had no borrowings or repayments under the Facility. As of ~~March 31,~~June 30, 2022 and December 31, 2021, the Facility had no outstanding balance and $1.0 billion available for use.

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, 2022 and December 31, 2021.

Refer to Note 12 for further information on our debt instruments.

2629

Non-GAAP Financial Measures

EBIT, Adjusted EBIT, Adjusted EBITDA and Adjusted EBITDA Margin

Earnings before interest and taxes ("EBIT"), adjusted EBIT, adjusted earnings before interest, 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 similarly-situated companies. This information differs from net income, operating income, and operating margin determined in accordance with accounting principles generally accepted in the United States of America ("~~U.S.~~ 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)		2022			2021			(in millions)	2022			2021			2022			2021
Net income (GAAP)	Net income (GAAP)		$	193.6		$	52.2		Net income (GAAP)	$	301.5		$	99.3		$	495.1		$	151.5
Less: (loss) income from discontinued operations (GAAP)			(0.7)			3.1
Less: income from discontinued operations (GAAP)									Less: income from discontinued operations (GAAP)	5.6			5.2			4.9			8.3
Income from continuing operations (GAAP)	Income from continuing operations (GAAP)		194.3			49.1			Income from continuing operations (GAAP)	295.9			94.1			490.2			143.2
Provision for income taxes	Provision for income taxes		60.5			13.3			Provision for income taxes	90.4			19.8			150.9			33.1
Interest expense, net	Interest expense, net		22.6			19.2			Interest expense, net	22.4			19.2			45.0			38.4
Interest income	Interest income		(0.2)			(0.5)			Interest income	(0.6)			(0.4)			(0.8)			(0.9)
EBIT	EBIT		277.2			81.1			EBIT	408.1			132.7			685.3			213.8
Exit and disposal, and facility rationalization costs	Exit and disposal, and facility rationalization costs		2.1			3.1			Exit and disposal, and facility rationalization costs	0.7			7.5			2.8			10.6
Inventory step-up amortization and acquisition costs			—			0.9
Inventory step-up amortization and transaction costs									Inventory step-up amortization and transaction costs	0.8			1.3			0.8			2.2
Impairment charges	Impairment charges		0.2			—			Impairment charges	—			—			0.2			—
Losses from acquisitions and disposals	Losses from acquisitions and disposals		0.3			3.4			Losses from acquisitions and disposals	0.1			0.1			0.4			3.5
Losses from insurance	Losses from insurance		0.3			—			Losses from insurance	—			0.5			0.3			0.5

Losses from litigation									Losses from litigation	—			0.1			—			0.1

Total non-comparable items	Total non-comparable items		2.9			7.4			Total non-comparable items	1.6			9.5			4.5			16.9
Adjusted EBIT	Adjusted EBIT		280.1			88.5			Adjusted EBIT	409.7			142.2			689.8			230.7
Depreciation	Depreciation		24.0			20.3			Depreciation	24.0			20.3			48.0			40.6
Amortization	Amortization		40.7			29.0			Amortization	38.5			29.2			79.2			58.2
Adjusted EBITDA	Adjusted EBITDA		$	344.8		$	137.8		Adjusted EBITDA	$	472.2		$	191.7		$	817.0		$	329.5
Divided by:	Divided by:								Divided by:
Total revenues	Total revenues		$	1,496.3		$	940.9		Total revenues	$	1,846.9		$	1,177.8		$	3,343.2		$	2,118.7
Adjusted EBITDA margin	Adjusted EBITDA margin		23.0		%	14.6		%	Adjusted EBITDA margin	25.6		%	16.3		%	24.4		%	15.6		%

2730


	Three Months Ended June 30, 2022
(in millions)	CCM			CWT			CIT			CFT			Corporate and unallocated
Operating income (loss) (GAAP)	$	358.9		$	59.0		$	7.9		$	7.0		$	(22.2)
Non-operating expense (income)(1)	0.9			0.1			(0.3)			—			1.8
EBIT	358.0			58.9			8.2			7.0			(24.0)
Exit and disposal, and facility rationalization costs	—			—			0.7			—			—
Inventory step-up amortization and transaction costs	—			0.1			—			—			0.7

(Gains) losses from acquisitions and disposals	(0.1)			—			0.2			—			—

(Gains) losses from litigation	—			—			(0.1)			—			0.1

Total non-comparable items	(0.1)			0.1			0.8			—			0.8
Adjusted EBIT	357.9			59.0			9.0			7.0			(23.2)
Depreciation	9.3			6.4			6.1			1.4			0.8
Amortization	4.1			18.1			11.9			3.8			0.6
Adjusted EBITDA	$	371.3		$	83.5		$	27.0		$	12.2		$	(21.8)
Divided by:
Total revenues	$	1,113.4		$	448.9		$	212.6		$	72.0		$	—
Adjusted EBITDA margin	33.3		%	18.6		%	12.7		%	16.9		%	NM

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


	Three Months Ended June 30, 2021
(in millions)	CCM			CWT			CIT			CFT			Corporate and unallocated
Operating income (loss) (GAAP)	$	155.0		$	22.4		$	(12.9)		$	6.6		$	(37.3)
Non-operating expense (income)(1)	—			0.1			—			1.1			(0.1)
EBIT	155.0			22.3			(12.9)			5.5			(37.2)
Exit and disposal, and facility rationalization costs	—			—			7.7			(0.2)			—
Inventory step-up amortization and transaction costs	—			—			—			—			1.3

(Gains) losses from acquisitions and disposals	(0.1)			—			—			0.2			—
Losses from insurance	0.3			0.2			—			—			—
Losses from litigation	—			—			—			—			0.1

Total non-comparable items	0.2			0.2			7.7			—			1.4
Adjusted EBIT	155.2			22.5			(5.2)			5.5			(35.8)
Depreciation	9.1			2.9			6.0			1.4			0.9
Amortization	4.0			7.5			12.7			4.5			0.5
Adjusted EBITDA	$	168.3		$	32.9		$	13.5		$	11.4		$	(34.4)
Divided by:
Total revenues	$	722.8		$	214.5		$	168.9		$	71.6		$	—
Adjusted EBITDA margin	23.3		%	15.3		%	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 and Comprehensive Income.


		Three Months Ended March 31, 2022															Six Months Ended June 30, 2022
(in millions)	(in millions)	CCM			CWT			CIT			CFT			Corporate and unallocated		(in millions)	CCM			CWT			CIT			CFT			Corporate and unallocated
Operating income (loss) (GAAP)	Operating income (loss) (GAAP)	$	261.1		$	37.5		$	(2.5)		$	4.8		$	(23.6)	Operating income (loss) (GAAP)	$	620.0		$	96.5		$	5.4		$	11.8		$	(45.8)
Non-operating expense (income)(1)	Non-operating expense (income)(1)	—			0.1			(0.5)			0.1			0.4		Non-operating expense (income)(1)	0.9			0.2			(0.8)			0.1			2.2
EBIT	EBIT	261.1			37.4			(2.0)			4.7			(24.0)		EBIT	619.1			96.3			6.2			11.7			(48.0)
Exit and disposal, and facility rationalization costs	Exit and disposal, and facility rationalization costs	—			0.1			2.0			—			—		Exit and disposal, and facility rationalization costs	—			0.1			2.7			—			—
Inventory step-up amortization and acquisition costs		—			(0.1)			—			—			0.1
Inventory step-up amortization and transaction costs																Inventory step-up amortization and transaction costs	—			—			—			—			0.8
Impairment charges	Impairment charges	—			0.2			—			—			—		Impairment charges	—			0.2			—			—			—
Losses from acquisitions and disposals		—			—			0.2			0.1			—
(Gains) losses from acquisitions and disposals																(Gains) losses from acquisitions and disposals	(0.1)			—			0.4			0.1			—
Losses from insurance	Losses from insurance	—			0.3			—			—			—		Losses from insurance	—			0.3			—			—			—

(Gains) losses from litigation																(Gains) losses from litigation	—			—			(0.1)			—			0.1

Total non-comparable items	Total non-comparable items	—			0.5			2.2			0.1			0.1		Total non-comparable items	(0.1)			0.6			3.0			0.1			0.9
Adjusted EBIT	Adjusted EBIT	261.1			37.9			0.2			4.8			(23.9)		Adjusted EBIT	619.0			96.9			9.2			11.8			(47.1)
Depreciation	Depreciation	9.2			6.3			6.1			1.5			0.9		Depreciation	18.5			12.7			12.2			2.9			1.7
Amortization	Amortization	5.0			18.9			12.1			4.2			0.5		Amortization	9.1			37.0			24.0			8.0			1.1
Adjusted EBITDA	Adjusted EBITDA	$	275.3		$	63.1		$	18.4		$	10.5		$	(22.5)	Adjusted EBITDA	$	646.6		$	146.6		$	45.4		$	22.7		$	(44.3)
Divided by:	Divided by:															Divided by:
Total revenues	Total revenues	$	881.1		$	359.1		$	185.0		$	71.1		$	—	Total revenues	$	1,994.5		$	808.0		$	397.6		$	143.1		$	—
Adjusted EBITDA margin	Adjusted EBITDA margin	31.2		%	17.6		%	9.9		%	14.8		%	NM		Adjusted EBITDA margin	32.4		%	18.1		%	11.4		%	15.9		%	NM

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

Three Months Ended March 31, 2021
(in millions) CCM CWT CIT CFT Corporate and unallocated
Operating income (loss) (GAAP) $ 110.7 $ 10.6 $ (10.7) $ 4.3 $ (30.2)
Non-operating expense (income)(1)
2.3 (0.1) — 0.4 1.0
EBIT 108.4 10.7 (10.7) 3.9 (31.2)
Exit and disposal, and facility rationalization costs — — 2.5 0.6 —
Inventory step-up amortization and acquisition costs — — — 0.1 0.8
Losses from acquisitions and disposals 2.3 — 0.3 — 0.8
Total non-comparable items 2.3 — 2.8 0.7 1.6
Adjusted EBIT 110.7 10.7 (7.9) 4.6 (29.6)
Depreciation 9.2 2.7 6.3 1.2 0.9
Amortization 4.0 7.5 12.6 4.4 0.5
Adjusted EBITDA $ 123.9 $ 20.9 $ 11.0 $ 10.2 $ (28.2)
Divided by:
Total revenues $ 556.4 $ 162.9 $ 155.8 $ 65.8 $ —
Adjusted EBITDA margin 22.3 % 12.8 % 7.1 % 15.5 % NM


	Six Months Ended June 30, 2021
(in millions)	CCM			CWT			CIT			CFT			Corporate and unallocated
Operating income (loss) (GAAP)	$	265.7		$	33.0		$	(23.6)		$	10.9		$	(67.5)
Non-operating expense(1)	2.3			—			—			1.5			0.9
EBIT	263.4			33.0			(23.6)			9.4			(68.4)
Exit and disposal, and facility rationalization costs	—			—			10.2			0.4			—
Inventory step-up amortization and transaction costs	—			—			—			0.1			2.1

Losses from acquisitions and disposals	2.2			—			0.3			0.2			0.8
Losses from insurance	0.3			0.2			—			—			—
Losses from litigation	—			—			—			—			0.1

Total non-comparable items	2.5			0.2			10.5			0.7			3.0
Adjusted EBIT	265.9			33.2			(13.1)			10.1			(65.4)
Depreciation	18.3			5.6			12.3			2.6			1.8
Amortization	8.0			15.0			25.3			8.9			1.0
Adjusted EBITDA	$	292.2		$	53.8		$	24.5		$	21.6		$	(62.6)
Divided by:
Total revenues	$	1,279.2		$	377.4		$	324.7		$	137.4		$	—
Adjusted EBITDA margin	22.8		%	14.3		%	7.5		%	15.7		%	NM

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

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Outlook

Our expectations for segment and total revenues for 2022, compared to 2021 follow:

2022 Revenue

Primary Drivers

Carlisle Construction Materials

~~~30%~~40% growth

•Proactive pricing measures gaining traction

•Strong re-roofing demand

•Increasing demand for energy-efficient building products

Carlisle Weatherproofing Technologies

~~~55 to~~ 60% growth

•Henry acquisition

•Strong demand in all product lines

Carlisle Interconnect Technologies

~~Low double-digit~~~20% growth

•Growing commercial aerospace and medical backlogs

Carlisle Fluid Technologies

~10% growth

•Focus on new product introductions and price discipline

•Markets strengthening

Total Carlisle

Over ~~30%~~40% growth

For the year 2022, we expect:

•Corporate expenses of approximately ~~$120~~$110 million;

•Depreciation and amortization expense of approximately $250 million;

•Capital expenditures of approximately $175 million;

•Interest expense, net of interest income, of approximately $90 million; and

•Base tax rate of approximately 24-25%.

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 the COVID-19 pandemic 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 that 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; our successful completion of strategic dispositions; the cyclical nature of our businesses; the impact of information technology, cybersecurity or data security breaches at our businesses or third parties; 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 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 inflation and interest rate and currency exchange rate fluctuations. Further, any conflict in the international arena, including the Russian invasion of Ukraine, 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, 2022. For additional information, refer to "PART II—Item 7A. Quantitative and Qualitative Disclosures About Market Risk" of the Company’s 2021 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, 2022, 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 third quarter of 2021, the Company completed its acquisition of ASP Henry Holdings, Inc. (“Henry”). This acquisition is material to the Company's results of operations, financial position and cash flows. Refer to Note 3 for additional information regarding the Henry acquisition.

The Company is currently in the process of integrating Henry, including internal controls and procedures and extending its Sarbanes-Oxley Act Section 404 compliance program to include Henry. The Company anticipates a successful integration of Henry's operations and internal controls and procedures and will continue to evaluate its internal control over financial reporting as the Company executes integration activities. The Company's assessment of the effectiveness of controls and procedures for the year ended December 31, 2022, will include Henry.

During the first the first ~~three~~six months of months of 2022, 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—Other Information

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.

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 2021 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, 2022:

(in millions, except per share amounts)
Total Number of Shares Purchased(1)
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(2)
January 0.3 $ 236.03 0.2 4.8
February — 237.15 — 4.8
March 0.3 237.42 0.3 4.5
Total 0.6 0.5


(in millions, except per share amounts)	Total Number of Shares Purchased(1)	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(2)
April	0.2	$	245.64	0.2	4.3
May	—	—		—	4.3
June	—	—		—	4.3
Total	0.2			0.2

(1)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, 2022, there ~~were approximately~~less than 0.1 million shares reacquired in transactions outside of the share repurchase program.

(2)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 share repurchase program has no expiration date, does not obligate the Company to purchase any specified amount of shares and remains subject to the discretion of the Board of Directors.

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Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

Item 6. Exhibits

Exhibit

Number

Filed with this Form 10-Q

Incorporated by Reference

Exhibit Title

Form

Date Filed

3.1

Amended and Restated Certificate of Incorporation of Carlisle Companies Incorporated.

8-K

5/5/2022

3.2

Amended and Restated Bylaws of Carlisle Companies Incorporated.

8-K

5/5/2022

10.1*

Carlisle Companies Incorporated Incentive Compensation Program, as amended and restated effective January 1, 2022.

8-K

5/2/2022

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~~Instance.

101.SCH

Inline XBRL Taxonomy Extension ~~Schema~~Schema.

101.CAL

Inline XBRL Taxonomy Extension ~~Calculation~~Calculation.

101.LAB

Inline XBRL Taxonomy Extension ~~Labels~~Labels.

101.PRE

Inline XBRL Taxonomy Extension ~~Presentation~~Presentation.

101.DEF

Inline XBRL Taxonomy Extension ~~Definition~~Definition.

104

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


*			Management contract or compensation plan or arrangement in which directors or executive officers are eligible to participate.

3135

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 29,~~July 28, 2022	By:	/s/ Kevin P. Zdimal
			Kevin P. Zdimal
			Vice President and Chief Financial Officer

3236