Document
P10Y0.04000.0400P40YP5YP19YP5YP3Y0.00200.00350.00250.00350050000005000000P3Yfalse--12-31FY20182018-12-310000790051YesfalseLarge Accelerated Filer6300000000falsefalseNoYesP7YP10YP15YP7YP12YP3YP10YP11YP14YP14YP9YP3YP4YP10YP5YP6YP5Y00001.301.441.541120000000020000000061839734579579120.0350.03750.03750.051250.0350.03750.03750.05125P10Y00P1YP1Y44115000000500000012000000000P40YP20YP15YP20YP2YP5Y012000000000P3YP3YP3Y1661319320534652 0000790051 2018-01-01 2018-12-31 0000790051 csl:AccellaPerformanceMaterialsMember 2018-01-01 2018-12-31 0000790051 csl:StarAviationMember 2018-01-01 2018-12-31 0000790051 2019-02-07 0000790051 2018-06-30 0000790051 2016-01-01 2016-12-31 0000790051 2017-01-01 2017-12-31 0000790051 2017-12-31 0000790051 2018-12-31 0000790051 2016-12-31 0000790051 2015-12-31 0000790051 us-gaap:CommonStockMember 2018-01-01 2018-12-31 0000790051 us-gaap:DeferredCompensationShareBasedPaymentsMember 2018-12-31 0000790051 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-01-01 2017-12-31 0000790051 us-gaap:RetainedEarningsMember 2018-01-01 2018-12-31 0000790051 us-gaap:DeferredCompensationShareBasedPaymentsMember 2018-01-01 2018-12-31 0000790051 us-gaap:AdditionalPaidInCapitalMember 2016-01-01 2016-12-31 0000790051 us-gaap:RetainedEarningsMember 2016-01-01 2016-12-31 0000790051 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2016-01-01 2016-12-31 0000790051 us-gaap:DeferredCompensationShareBasedPaymentsMember 2015-12-31 0000790051 us-gaap:CommonStockMember 2018-12-31 0000790051 us-gaap:TreasuryStockMember 2017-01-01 2017-12-31 0000790051 us-gaap:TreasuryStockMember 2016-12-31 0000790051 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 0000790051 us-gaap:TreasuryStockMember 2018-01-01 2018-12-31 0000790051 us-gaap:TreasuryStockMember 2016-01-01 2016-12-31 0000790051 us-gaap:CommonStockMember 2017-12-31 0000790051 us-gaap:AdditionalPaidInCapitalMember 2017-01-01 2017-12-31 0000790051 us-gaap:CommonStockMember 2016-01-01 2016-12-31 0000790051 us-gaap:AdditionalPaidInCapitalMember 2015-12-31 0000790051 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0000790051 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-12-31 0000790051 us-gaap:DeferredCompensationShareBasedPaymentsMember 2017-01-01 2017-12-31 0000790051 us-gaap:RetainedEarningsMember 2018-01-01 0000790051 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000790051 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0000790051 us-gaap:TreasuryStockMember 2015-12-31 0000790051 us-gaap:RetainedEarningsMember 2015-12-31 0000790051 us-gaap:RetainedEarningsMember 2017-01-01 2017-12-31 0000790051 us-gaap:TreasuryStockMember 2018-12-31 0000790051 us-gaap:DeferredCompensationShareBasedPaymentsMember 2016-12-31 0000790051 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2016-12-31 0000790051 us-gaap:CommonStockMember 2017-01-01 2017-12-31 0000790051 us-gaap:TreasuryStockMember 2017-12-31 0000790051 us-gaap:CommonStockMember 2016-12-31 0000790051 us-gaap:CommonStockMember 2015-12-31 0000790051 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-12-31 0000790051 us-gaap:AdditionalPaidInCapitalMember 2016-12-31 0000790051 us-gaap:DeferredCompensationShareBasedPaymentsMember 2016-01-01 2016-12-31 0000790051 2018-01-01 0000790051 us-gaap:RetainedEarningsMember 2017-12-31 0000790051 us-gaap:DeferredCompensationShareBasedPaymentsMember 2017-12-31 0000790051 us-gaap:RetainedEarningsMember 2018-12-31 0000790051 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-12-31 0000790051 us-gaap:RetainedEarningsMember 2016-12-31 0000790051 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2015-12-31 0000790051 us-gaap:AccountingStandardsUpdate201409Member us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-01-01 2018-12-31 0000790051 us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member 2018-01-01 2018-12-31 0000790051 us-gaap:AccountingStandardsUpdate201707Member us-gaap:OtherNonoperatingIncomeExpenseMember 2016-01-01 2017-12-31 0000790051 us-gaap:AccountingStandardsUpdate201409Member us-gaap:DifferenceBetweenRevenueGuidanceInEffectBeforeAndAfterTopic606Member 2018-12-31 0000790051 csl:AccountingStandardsUpdate201811Member us-gaap:ScenarioForecastMember 2019-01-01 0000790051 csl:AccountingStandardsUpdate201802Member us-gaap:RetainedEarningsMember 2018-01-01 2018-12-31 0000790051 us-gaap:CalculatedUnderRevenueGuidanceInEffectBeforeTopic606Member 2018-12-31 0000790051 srt:MinimumMember us-gaap:MachineryAndEquipmentMember 2018-01-01 2018-12-31 0000790051 srt:MaximumMember us-gaap:MachineryAndEquipmentMember 2018-01-01 2018-12-31 0000790051 srt:MaximumMember us-gaap:LeaseholdImprovementsMember 2018-01-01 2018-12-31 0000790051 srt:MinimumMember us-gaap:LeaseholdImprovementsMember 2018-01-01 2018-12-31 0000790051 srt:MinimumMember us-gaap:BuildingMember 2018-01-01 2018-12-31 0000790051 srt:MaximumMember us-gaap:BuildingMember 2018-01-01 2018-12-31 0000790051 srt:MinimumMember 2018-01-01 2018-12-31 0000790051 srt:WeightedAverageMember 2018-01-01 2018-12-31 0000790051 srt:MaximumMember 2018-01-01 2018-12-31 0000790051 csl:ConstructionMaterialsMember 2017-01-01 2017-12-31 0000790051 csl:InterconnectTechnologiesMember 2017-01-01 2017-12-31 0000790051 country:MX csl:BrakeAndFrictionMember 2017-01-01 2017-12-31 0000790051 csl:InternationalMember csl:InterconnectTechnologiesMember 2017-01-01 2017-12-31 0000790051 csl:MiddleEastandAfricaMember csl:ConstructionMaterialsMember 2017-01-01 2017-12-31 0000790051 country:CA csl:FluidTechnologiesMember 2017-01-01 2017-12-31 0000790051 srt:AsiaMember csl:BrakeAndFrictionMember 2017-01-01 2017-12-31 0000790051 csl:FluidTechnologiesMember 2017-01-01 2017-12-31 0000790051 srt:EuropeMember csl:ConstructionMaterialsMember 2017-01-01 2017-12-31 0000790051 csl:MiddleEastandAfricaMember csl:InterconnectTechnologiesMember 2017-01-01 2017-12-31 0000790051 srt:AsiaMember csl:ConstructionMaterialsMember 2017-01-01 2017-12-31 0000790051 srt:EuropeMember csl:BrakeAndFrictionMember 2017-01-01 2017-12-31 0000790051 csl:MiddleEastandAfricaMember csl:BrakeAndFrictionMember 2017-01-01 2017-12-31 0000790051 country:US csl:ConstructionMaterialsMember 2017-01-01 2017-12-31 0000790051 country:MX csl:InterconnectTechnologiesMember 2017-01-01 2017-12-31 0000790051 csl:OtherCountriesMember 2017-01-01 2017-12-31 0000790051 srt:AsiaMember csl:InterconnectTechnologiesMember 2017-01-01 2017-12-31 0000790051 country:US csl:FluidTechnologiesMember 2017-01-01 2017-12-31 0000790051 csl:InternationalMember csl:ConstructionMaterialsMember 2017-01-01 2017-12-31 0000790051 country:CA csl:ConstructionMaterialsMember 2017-01-01 2017-12-31 0000790051 srt:EuropeMember csl:FluidTechnologiesMember 2017-01-01 2017-12-31 0000790051 csl:OtherCountriesMember csl:BrakeAndFrictionMember 2017-01-01 2017-12-31 0000790051 country:CA csl:BrakeAndFrictionMember 2017-01-01 2017-12-31 0000790051 srt:AsiaMember csl:FluidTechnologiesMember 2017-01-01 2017-12-31 0000790051 country:US 2017-01-01 2017-12-31 0000790051 country:MX 2017-01-01 2017-12-31 0000790051 csl:OtherCountriesMember csl:InterconnectTechnologiesMember 2017-01-01 2017-12-31 0000790051 csl:OtherCountriesMember csl:FluidTechnologiesMember 2017-01-01 2017-12-31 0000790051 country:US csl:BrakeAndFrictionMember 2017-01-01 2017-12-31 0000790051 country:MX csl:FluidTechnologiesMember 2017-01-01 2017-12-31 0000790051 country:MX csl:ConstructionMaterialsMember 2017-01-01 2017-12-31 0000790051 csl:MiddleEastandAfricaMember csl:FluidTechnologiesMember 2017-01-01 2017-12-31 0000790051 country:CA csl:InterconnectTechnologiesMember 2017-01-01 2017-12-31 0000790051 csl:InternationalMember csl:FluidTechnologiesMember 2017-01-01 2017-12-31 0000790051 csl:MiddleEastandAfricaMember 2017-01-01 2017-12-31 0000790051 csl:InternationalMember 2017-01-01 2017-12-31 0000790051 country:US csl:InterconnectTechnologiesMember 2017-01-01 2017-12-31 0000790051 csl:InternationalMember csl:BrakeAndFrictionMember 2017-01-01 2017-12-31 0000790051 country:CA 2017-01-01 2017-12-31 0000790051 csl:BrakeAndFrictionMember 2017-01-01 2017-12-31 0000790051 srt:EuropeMember csl:InterconnectTechnologiesMember 2017-01-01 2017-12-31 0000790051 csl:OtherCountriesMember csl:ConstructionMaterialsMember 2017-01-01 2017-12-31 0000790051 srt:EuropeMember 2017-01-01 2017-12-31 0000790051 srt:AsiaMember 2017-01-01 2017-12-31 0000790051 csl:OtherCountriesMember 2018-12-31 0000790051 country:US 2017-12-31 0000790051 srt:EuropeMember 2017-12-31 0000790051 csl:MexicoAndLatinAmericaMember 2018-12-31 0000790051 country:US 2018-12-31 0000790051 srt:EuropeMember 2018-12-31 0000790051 country:GB 2017-12-31 0000790051 csl:MexicoAndLatinAmericaMember 2017-12-31 0000790051 csl:OtherCountriesMember 2017-12-31 0000790051 country:GB 2018-12-31 0000790051 srt:AsiaMember 2017-12-31 0000790051 srt:AsiaMember 2018-12-31 0000790051 country:US csl:FluidTechnologiesMember 2016-01-01 2016-12-31 0000790051 srt:AsiaMember 2016-01-01 2016-12-31 0000790051 csl:OtherCountriesMember csl:BrakeAndFrictionMember 2016-01-01 2016-12-31 0000790051 srt:EuropeMember 2016-01-01 2016-12-31 0000790051 country:MX csl:FluidTechnologiesMember 2016-01-01 2016-12-31 0000790051 country:US 2016-01-01 2016-12-31 0000790051 country:CA 2016-01-01 2016-12-31 0000790051 csl:OtherCountriesMember csl:ConstructionMaterialsMember 2016-01-01 2016-12-31 0000790051 csl:OtherCountriesMember csl:InterconnectTechnologiesMember 2016-01-01 2016-12-31 0000790051 country:CA csl:BrakeAndFrictionMember 2016-01-01 2016-12-31 0000790051 csl:MiddleEastandAfricaMember csl:ConstructionMaterialsMember 2016-01-01 2016-12-31 0000790051 country:MX csl:BrakeAndFrictionMember 2016-01-01 2016-12-31 0000790051 csl:BrakeAndFrictionMember 2016-01-01 2016-12-31 0000790051 country:US csl:BrakeAndFrictionMember 2016-01-01 2016-12-31 0000790051 srt:AsiaMember csl:ConstructionMaterialsMember 2016-01-01 2016-12-31 0000790051 srt:AsiaMember csl:BrakeAndFrictionMember 2016-01-01 2016-12-31 0000790051 csl:InterconnectTechnologiesMember 2016-01-01 2016-12-31 0000790051 csl:FluidTechnologiesMember 2016-01-01 2016-12-31 0000790051 srt:AsiaMember csl:FluidTechnologiesMember 2016-01-01 2016-12-31 0000790051 country:US csl:InterconnectTechnologiesMember 2016-01-01 2016-12-31 0000790051 csl:InternationalMember csl:ConstructionMaterialsMember 2016-01-01 2016-12-31 0000790051 srt:EuropeMember csl:BrakeAndFrictionMember 2016-01-01 2016-12-31 0000790051 country:CA csl:ConstructionMaterialsMember 2016-01-01 2016-12-31 0000790051 country:CA csl:InterconnectTechnologiesMember 2016-01-01 2016-12-31 0000790051 csl:OtherCountriesMember csl:FluidTechnologiesMember 2016-01-01 2016-12-31 0000790051 csl:ConstructionMaterialsMember 2016-01-01 2016-12-31 0000790051 csl:InternationalMember csl:InterconnectTechnologiesMember 2016-01-01 2016-12-31 0000790051 country:MX csl:InterconnectTechnologiesMember 2016-01-01 2016-12-31 0000790051 srt:EuropeMember csl:ConstructionMaterialsMember 2016-01-01 2016-12-31 0000790051 csl:MiddleEastandAfricaMember csl:InterconnectTechnologiesMember 2016-01-01 2016-12-31 0000790051 csl:MiddleEastandAfricaMember 2016-01-01 2016-12-31 0000790051 csl:InternationalMember csl:FluidTechnologiesMember 2016-01-01 2016-12-31 0000790051 srt:EuropeMember csl:FluidTechnologiesMember 2016-01-01 2016-12-31 0000790051 country:MX csl:ConstructionMaterialsMember 2016-01-01 2016-12-31 0000790051 country:US csl:ConstructionMaterialsMember 2016-01-01 2016-12-31 0000790051 csl:MiddleEastandAfricaMember csl:FluidTechnologiesMember 2016-01-01 2016-12-31 0000790051 srt:EuropeMember csl:InterconnectTechnologiesMember 2016-01-01 2016-12-31 0000790051 csl:InternationalMember csl:BrakeAndFrictionMember 2016-01-01 2016-12-31 0000790051 country:MX 2016-01-01 2016-12-31 0000790051 srt:AsiaMember csl:InterconnectTechnologiesMember 2016-01-01 2016-12-31 0000790051 country:CA csl:FluidTechnologiesMember 2016-01-01 2016-12-31 0000790051 csl:InternationalMember 2016-01-01 2016-12-31 0000790051 csl:OtherCountriesMember 2016-01-01 2016-12-31 0000790051 csl:MiddleEastandAfricaMember csl:BrakeAndFrictionMember 2016-01-01 2016-12-31 0000790051 country:CA csl:FluidTechnologiesMember 2018-01-01 2018-12-31 0000790051 srt:AsiaMember csl:InterconnectTechnologiesMember 2018-01-01 2018-12-31 0000790051 srt:EuropeMember csl:InterconnectTechnologiesMember 2018-01-01 2018-12-31 0000790051 csl:MiddleEastandAfricaMember csl:BrakeAndFrictionMember 2018-01-01 2018-12-31 0000790051 srt:EuropeMember csl:ConstructionMaterialsMember 2018-01-01 2018-12-31 0000790051 csl:MiddleEastandAfricaMember csl:InterconnectTechnologiesMember 2018-01-01 2018-12-31 0000790051 country:CA csl:InterconnectTechnologiesMember 2018-01-01 2018-12-31 0000790051 country:US csl:FluidTechnologiesMember 2018-01-01 2018-12-31 0000790051 srt:AsiaMember csl:BrakeAndFrictionMember 2018-01-01 2018-12-31 0000790051 country:MX 2018-01-01 2018-12-31 0000790051 csl:InterconnectTechnologiesMember 2018-01-01 2018-12-31 0000790051 country:MX csl:ConstructionMaterialsMember 2018-01-01 2018-12-31 0000790051 csl:ConstructionMaterialsMember 2018-01-01 2018-12-31 0000790051 country:MX csl:BrakeAndFrictionMember 2018-01-01 2018-12-31 0000790051 srt:EuropeMember 2018-01-01 2018-12-31 0000790051 country:US csl:ConstructionMaterialsMember 2018-01-01 2018-12-31 0000790051 country:CA 2018-01-01 2018-12-31 0000790051 csl:InternationalMember 2018-01-01 2018-12-31 0000790051 country:US csl:InterconnectTechnologiesMember 2018-01-01 2018-12-31 0000790051 csl:FluidTechnologiesMember 2018-01-01 2018-12-31 0000790051 csl:MiddleEastandAfricaMember 2018-01-01 2018-12-31 0000790051 srt:EuropeMember csl:BrakeAndFrictionMember 2018-01-01 2018-12-31 0000790051 csl:MiddleEastandAfricaMember csl:FluidTechnologiesMember 2018-01-01 2018-12-31 0000790051 csl:OtherCountriesMember csl:BrakeAndFrictionMember 2018-01-01 2018-12-31 0000790051 country:MX csl:FluidTechnologiesMember 2018-01-01 2018-12-31 0000790051 srt:AsiaMember csl:ConstructionMaterialsMember 2018-01-01 2018-12-31 0000790051 csl:OtherCountriesMember csl:InterconnectTechnologiesMember 2018-01-01 2018-12-31 0000790051 country:CA csl:ConstructionMaterialsMember 2018-01-01 2018-12-31 0000790051 csl:BrakeAndFrictionMember 2018-01-01 2018-12-31 0000790051 country:MX csl:InterconnectTechnologiesMember 2018-01-01 2018-12-31 0000790051 csl:InternationalMember csl:BrakeAndFrictionMember 2018-01-01 2018-12-31 0000790051 csl:OtherCountriesMember csl:ConstructionMaterialsMember 2018-01-01 2018-12-31 0000790051 csl:InternationalMember csl:InterconnectTechnologiesMember 2018-01-01 2018-12-31 0000790051 country:CA csl:BrakeAndFrictionMember 2018-01-01 2018-12-31 0000790051 country:US 2018-01-01 2018-12-31 0000790051 csl:InternationalMember csl:ConstructionMaterialsMember 2018-01-01 2018-12-31 0000790051 srt:AsiaMember 2018-01-01 2018-12-31 0000790051 csl:OtherCountriesMember csl:FluidTechnologiesMember 2018-01-01 2018-12-31 0000790051 csl:MiddleEastandAfricaMember csl:ConstructionMaterialsMember 2018-01-01 2018-12-31 0000790051 csl:InternationalMember csl:FluidTechnologiesMember 2018-01-01 2018-12-31 0000790051 country:US csl:BrakeAndFrictionMember 2018-01-01 2018-12-31 0000790051 srt:EuropeMember csl:FluidTechnologiesMember 2018-01-01 2018-12-31 0000790051 csl:OtherCountriesMember 2018-01-01 2018-12-31 0000790051 srt:AsiaMember csl:FluidTechnologiesMember 2018-01-01 2018-12-31 0000790051 us-gaap:OperatingSegmentsMember csl:FluidTechnologiesMember 2016-01-01 2016-12-31 0000790051 us-gaap:OperatingSegmentsMember csl:BrakeAndFrictionMember 2018-01-01 2018-12-31 0000790051 us-gaap:OperatingSegmentsMember csl:FluidTechnologiesMember 2017-01-01 2017-12-31 0000790051 us-gaap:OperatingSegmentsMember csl:BrakeAndFrictionMember 2017-01-01 2017-12-31 0000790051 us-gaap:OperatingSegmentsMember csl:BrakeAndFrictionMember 2016-01-01 2016-12-31 0000790051 us-gaap:OperatingSegmentsMember csl:ConstructionMaterialsMember 2017-01-01 2017-12-31 0000790051 us-gaap:OperatingSegmentsMember csl:InterconnectTechnologiesMember 2018-01-01 2018-12-31 0000790051 us-gaap:CorporateNonSegmentMember 2016-01-01 2016-12-31 0000790051 us-gaap:CorporateNonSegmentMember 2017-01-01 2017-12-31 0000790051 us-gaap:OperatingSegmentsMember csl:ConstructionMaterialsMember 2018-01-01 2018-12-31 0000790051 us-gaap:OperatingSegmentsMember csl:FluidTechnologiesMember 2018-01-01 2018-12-31 0000790051 us-gaap:OperatingSegmentsMember csl:InterconnectTechnologiesMember 2017-12-31 0000790051 us-gaap:CorporateNonSegmentMember 2016-12-31 0000790051 us-gaap:OperatingSegmentsMember 2016-12-31 0000790051 us-gaap:CorporateNonSegmentMember 2017-12-31 0000790051 us-gaap:OperatingSegmentsMember csl:BrakeAndFrictionMember 2016-12-31 0000790051 us-gaap:CorporateNonSegmentMember 2018-01-01 2018-12-31 0000790051 us-gaap:OperatingSegmentsMember 2016-01-01 2016-12-31 0000790051 us-gaap:OperatingSegmentsMember csl:InterconnectTechnologiesMember 2017-01-01 2017-12-31 0000790051 us-gaap:OperatingSegmentsMember csl:InterconnectTechnologiesMember 2016-01-01 2016-12-31 0000790051 us-gaap:OperatingSegmentsMember csl:ConstructionMaterialsMember 2016-01-01 2016-12-31 0000790051 us-gaap:OperatingSegmentsMember 2018-01-01 2018-12-31 0000790051 us-gaap:OperatingSegmentsMember csl:BrakeAndFrictionMember 2018-12-31 0000790051 us-gaap:OperatingSegmentsMember 2017-01-01 2017-12-31 0000790051 us-gaap:OperatingSegmentsMember csl:FluidTechnologiesMember 2017-12-31 0000790051 us-gaap:OperatingSegmentsMember csl:FluidTechnologiesMember 2016-12-31 0000790051 us-gaap:OperatingSegmentsMember 2017-12-31 0000790051 us-gaap:OperatingSegmentsMember csl:ConstructionMaterialsMember 2018-12-31 0000790051 us-gaap:OperatingSegmentsMember csl:BrakeAndFrictionMember 2017-12-31 0000790051 us-gaap:OperatingSegmentsMember 2018-12-31 0000790051 us-gaap:OperatingSegmentsMember csl:InterconnectTechnologiesMember 2018-12-31 0000790051 us-gaap:OperatingSegmentsMember csl:ConstructionMaterialsMember 2017-12-31 0000790051 us-gaap:OperatingSegmentsMember csl:InterconnectTechnologiesMember 2016-12-31 0000790051 us-gaap:OperatingSegmentsMember csl:FluidTechnologiesMember 2018-12-31 0000790051 us-gaap:OperatingSegmentsMember csl:ConstructionMaterialsMember 2016-12-31 0000790051 us-gaap:CorporateNonSegmentMember 2018-12-31 0000790051 csl:OtherCustomerMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-01-01 2018-12-31 0000790051 csl:ABCSupplyCo.Member us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2017-01-01 2017-12-31 0000790051 csl:BeaconRoofingSupplyIncMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2016-01-01 2016-12-31 0000790051 csl:BeaconRoofingSupplyIncMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-01-01 2018-12-31 0000790051 csl:OtherCustomerMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2016-01-01 2016-12-31 0000790051 csl:OtherCustomerMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2017-01-01 2017-12-31 0000790051 csl:ArboHoldingsLimitedMember 2017-01-31 0000790051 csl:DrexelMetalsInc.Member 2017-07-03 2017-12-31 0000790051 csl:MicroCoaxIncMember us-gaap:CustomerRelationshipsMember 2017-06-30 0000790051 csl:StarAviationMember 2016-10-03 0000790051 csl:AccellaPerformanceMaterialsMember 2017-11-01 2017-12-31 0000790051 csl:MicroCoaxIncMember 2016-06-10 0000790051 csl:AccellaPerformanceMaterialsMember 2018-11-01 0000790051 csl:AccellaPerformanceMaterialsMember us-gaap:CustomerRelationshipsMember 2017-11-01 0000790051 csl:DrexelMetalsInc.Member 2017-07-03 0000790051 csl:AccellaPerformanceMaterialsMember 2017-01-01 2017-12-31 0000790051 csl:MsOberflachentechnikAgMember 2016-02-19 0000790051 csl:MicroCoaxIncMember csl:AcquiredTechnologyMember 2017-06-30 0000790051 csl:DrexelMetalsInc.Member 2017-07-03 2017-07-03 0000790051 csl:AccellaPerformanceMaterialsMember 2017-11-01 0000790051 csl:DrexelMetalsInc.Member 2018-01-01 2018-12-31 0000790051 csl:MicroCoaxIncMember 2016-06-10 2017-06-30 0000790051 csl:AccellaPerformanceMaterialsMember us-gaap:FairValueAdjustmentToInventoryMember csl:ConstructionMaterialsMember 2017-11-01 2017-12-31 0000790051 csl:DrexelMetalsInc.Member 2017-11-01 0000790051 csl:ArboHoldingsLimitedMember 2017-01-31 2017-01-31 0000790051 csl:MsOberflachentechnikAgMember csl:AcquiredTechnologyMember 2016-02-19 0000790051 csl:AccellaPerformanceMaterialsMember 2018-11-01 2018-11-01 0000790051 csl:StarAviationMember us-gaap:NoncompeteAgreementsMember 2017-09-30 0000790051 csl:AccellaPerformanceMaterialsMember 2018-07-01 2018-09-30 0000790051 csl:MsOberflachentechnikAgMember us-gaap:CustomerRelationshipsMember 2016-02-19 0000790051 csl:MicroCoaxIncMember us-gaap:NoncompeteAgreementsMember 2017-06-30 0000790051 csl:ArboHoldingsLimitedMember 2017-01-31 2017-12-31 0000790051 csl:ArboHoldingsLimitedMember 2018-01-01 2018-12-31 0000790051 csl:MicroCoaxIncMember 2017-06-30 0000790051 csl:StarAviationMember 2017-01-01 2017-09-30 0000790051 csl:MicroCoaxIncMember 2018-01-01 2018-12-31 0000790051 csl:ProductsTransferredataPointinTimeorOverTimeMember 2018-01-01 2018-12-31 0000790051 csl:MsOberflachentechnikAgMember 2016-02-19 2016-02-19 0000790051 csl:StarAviationMember csl:AcquiredTechnologyMember 2017-09-30 0000790051 csl:AccellaPerformanceMaterialsMember us-gaap:TradeNamesMember 2017-11-01 0000790051 csl:AccellaPerformanceMaterialsMember us-gaap:TechnologyBasedIntangibleAssetsMember 2017-11-01 0000790051 csl:MicroCoaxIncMember us-gaap:TradeNamesMember 2017-06-30 0000790051 csl:AccellaPerformanceMaterialsMember us-gaap:AcquisitionRelatedCostsMember csl:ConstructionMaterialsMember 2017-11-01 2017-12-31 0000790051 csl:StarAviationMember us-gaap:CustomerRelationshipsMember 2017-09-30 0000790051 csl:StarAviationMember 2017-09-30 0000790051 csl:AccellaPerformanceMaterialsMember 2016-01-01 2016-12-31 0000790051 csl:AccellaPerformanceMaterialsMember us-gaap:ScenarioAdjustmentMember 2018-11-01 0000790051 srt:ScenarioPreviouslyReportedMember csl:AccellaPerformanceMaterialsMember 2017-11-01 0000790051 csl:AccellaPerformanceMaterialsMember us-gaap:ScenarioAdjustmentMember 2017-11-02 2018-11-01 0000790051 srt:ScenarioPreviouslyReportedMember csl:AccellaPerformanceMaterialsMember 2017-11-01 2017-11-01 0000790051 srt:ScenarioPreviouslyReportedMember csl:StarAviationMember 2016-10-03 2016-10-03 0000790051 srt:ScenarioPreviouslyReportedMember csl:StarAviationMember 2016-10-03 0000790051 csl:StarAviationMember us-gaap:ScenarioAdjustmentMember 2017-09-30 0000790051 csl:MicroCoaxIncMember us-gaap:ScenarioAdjustmentMember 2016-06-10 2017-06-30 0000790051 csl:MicroCoaxIncMember us-gaap:ScenarioAdjustmentMember 2017-06-30 0000790051 srt:ScenarioPreviouslyReportedMember csl:MicroCoaxIncMember 2016-06-30 0000790051 srt:ScenarioPreviouslyReportedMember csl:MicroCoaxIncMember 2016-06-10 2016-06-10 0000790051 srt:MaximumMember csl:AccellaPerformanceMaterialsMember us-gaap:CustomerRelationshipsMember 2017-11-01 2017-11-01 0000790051 csl:MsOberflachentechnikAgMember csl:AcquiredTechnologyMember 2016-02-19 2016-02-19 0000790051 srt:MinimumMember csl:StarAviationMember us-gaap:CustomerRelationshipsMember 2017-01-01 2017-09-30 0000790051 csl:MicroCoaxIncMember us-gaap:CustomerRelationshipsMember 2016-06-10 2017-06-30 0000790051 srt:MinimumMember csl:AccellaPerformanceMaterialsMember us-gaap:TradeNamesMember 2017-11-01 2017-11-01 0000790051 srt:MaximumMember csl:StarAviationMember us-gaap:CustomerRelationshipsMember 2017-01-01 2017-09-30 0000790051 srt:MaximumMember csl:AccellaPerformanceMaterialsMember us-gaap:TradeNamesMember 2017-11-01 2017-11-01 0000790051 csl:StarAviationMember us-gaap:NoncompeteAgreementsMember 2017-01-01 2017-09-30 0000790051 csl:ArboHoldingsLimitedMember us-gaap:CustomerRelationshipsMember 2017-01-31 2017-01-31 0000790051 csl:MicroCoaxIncMember us-gaap:TradeNamesMember 2016-06-10 2017-06-30 0000790051 csl:MicroCoaxIncMember csl:AcquiredTechnologyMember 2016-06-10 2017-06-30 0000790051 csl:MicroCoaxIncMember us-gaap:NoncompeteAgreementsMember 2016-06-10 2017-06-30 0000790051 csl:MsOberflachentechnikAgMember us-gaap:CustomerRelationshipsMember 2016-02-19 2016-02-19 0000790051 srt:MinimumMember csl:AccellaPerformanceMaterialsMember us-gaap:TechnologyBasedIntangibleAssetsMember 2017-11-01 2017-11-01 0000790051 csl:StarAviationMember csl:AcquiredTechnologyMember 2017-01-01 2017-09-30 0000790051 srt:MaximumMember csl:AccellaPerformanceMaterialsMember us-gaap:TechnologyBasedIntangibleAssetsMember 2017-11-01 2017-11-01 0000790051 srt:MinimumMember csl:AccellaPerformanceMaterialsMember us-gaap:CustomerRelationshipsMember 2017-11-01 2017-11-01 0000790051 csl:FoodServiceProductsMember 2017-01-01 2017-12-31 0000790051 csl:FoodServiceProductsMember 2018-01-01 2018-12-31 0000790051 csl:FoodServiceProductsMember 2016-01-01 2016-12-31 0000790051 csl:FoodServiceProductsMember 2018-07-01 2018-09-30 0000790051 csl:FoodServiceProductsMember 2017-12-31 0000790051 2019-01-01 2018-12-31 0000790051 2022-01-01 2018-12-31 0000790051 2020-01-01 2018-12-31 0000790051 2021-01-01 2018-12-31 0000790051 2023-01-01 2018-12-31 0000790051 2024-01-01 2018-12-31 0000790051 csl:InterconnectTechnologiesMember csl:GeneralConstructionMember 2018-01-01 2018-12-31 0000790051 csl:BrakeAndFrictionMember csl:MedicalBusinessMember 2018-01-01 2018-12-31 0000790051 csl:FluidTechnologiesMember csl:AerospaceManufacturingOperationsMember 2018-01-01 2018-12-31 0000790051 csl:FluidTechnologiesMember csl:MedicalBusinessMember 2018-01-01 2018-12-31 0000790051 csl:ConstructionMaterialsMember csl:HeavyEquipmentMember 2018-01-01 2018-12-31 0000790051 csl:InterconnectTechnologiesMember csl:AerospaceManufacturingOperationsMember 2018-01-01 2018-12-31 0000790051 csl:InterconnectTechnologiesMember csl:GeneralIndustrialandOtherMember 2018-01-01 2018-12-31 0000790051 csl:ConstructionMaterialsMember csl:AerospaceManufacturingOperationsMember 2018-01-01 2018-12-31 0000790051 csl:GeneralIndustrialandOtherMember 2018-01-01 2018-12-31 0000790051 csl:InterconnectTechnologiesMember csl:TransportationMember 2018-01-01 2018-12-31 0000790051 csl:FluidTechnologiesMember csl:GeneralIndustrialandOtherMember 2018-01-01 2018-12-31 0000790051 csl:FluidTechnologiesMember csl:HeavyEquipmentMember 2018-01-01 2018-12-31 0000790051 csl:InterconnectTechnologiesMember csl:HeavyEquipmentMember 2018-01-01 2018-12-31 0000790051 csl:BrakeAndFrictionMember csl:AerospaceManufacturingOperationsMember 2018-01-01 2018-12-31 0000790051 csl:FluidTechnologiesMember csl:TransportationMember 2018-01-01 2018-12-31 0000790051 csl:ConstructionMaterialsMember csl:MedicalBusinessMember 2018-01-01 2018-12-31 0000790051 csl:BrakeAndFrictionMember csl:TransportationMember 2018-01-01 2018-12-31 0000790051 csl:InterconnectTechnologiesMember csl:MedicalBusinessMember 2018-01-01 2018-12-31 0000790051 csl:GeneralConstructionMember 2018-01-01 2018-12-31 0000790051 csl:ConstructionMaterialsMember csl:GeneralConstructionMember 2018-01-01 2018-12-31 0000790051 csl:ConstructionMaterialsMember csl:GeneralIndustrialandOtherMember 2018-01-01 2018-12-31 0000790051 csl:MedicalBusinessMember 2018-01-01 2018-12-31 0000790051 csl:BrakeAndFrictionMember csl:HeavyEquipmentMember 2018-01-01 2018-12-31 0000790051 csl:FluidTechnologiesMember csl:GeneralConstructionMember 2018-01-01 2018-12-31 0000790051 csl:HeavyEquipmentMember 2018-01-01 2018-12-31 0000790051 csl:BrakeAndFrictionMember csl:GeneralIndustrialandOtherMember 2018-01-01 2018-12-31 0000790051 csl:ConstructionMaterialsMember csl:TransportationMember 2018-01-01 2018-12-31 0000790051 csl:BrakeAndFrictionMember csl:GeneralConstructionMember 2018-01-01 2018-12-31 0000790051 csl:AerospaceManufacturingOperationsMember 2018-01-01 2018-12-31 0000790051 csl:TransportationMember 2018-01-01 2018-12-31 0000790051 csl:InterconnectTechnologiesMember us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-12-31 0000790051 us-gaap:TransferredOverTimeMember 2018-01-01 2018-12-31 0000790051 csl:FluidTechnologiesMember us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-12-31 0000790051 csl:ConstructionMaterialsMember us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-12-31 0000790051 csl:ConstructionMaterialsMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-12-31 0000790051 csl:BrakeAndFrictionMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-12-31 0000790051 csl:InterconnectTechnologiesMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-12-31 0000790051 us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-12-31 0000790051 csl:FluidTechnologiesMember us-gaap:TransferredOverTimeMember 2018-01-01 2018-12-31 0000790051 csl:BrakeAndFrictionMember us-gaap:TransferredAtPointInTimeMember 2018-01-01 2018-12-31 0000790051 csl:PerformanceShareAwardMember 2017-01-01 2017-12-31 0000790051 us-gaap:EmployeeStockOptionMember 2016-01-01 2016-12-31 0000790051 us-gaap:RestrictedStockUnitsRSUMember 2017-01-01 2017-12-31 0000790051 csl:PerformanceShareAwardMember 2016-01-01 2016-12-31 0000790051 us-gaap:RestrictedStockUnitsRSUMember 2018-01-01 2018-12-31 0000790051 us-gaap:EmployeeStockOptionMember 2017-01-01 2017-12-31 0000790051 csl:RestrictedStockAwardMember 2018-01-01 2018-12-31 0000790051 us-gaap:RestrictedStockUnitsRSUMember 2016-01-01 2016-12-31 0000790051 csl:RestrictedStockAwardMember 2016-01-01 2016-12-31 0000790051 us-gaap:EmployeeStockOptionMember 2018-01-01 2018-12-31 0000790051 csl:RestrictedStockAwardMember 2017-01-01 2017-12-31 0000790051 csl:PerformanceShareAwardMember 2018-01-01 2018-12-31 0000790051 us-gaap:EmployeeStockOptionMember 2017-12-31 0000790051 us-gaap:EmployeeStockOptionMember 2018-12-31 0000790051 csl:RestrictedStockAwardMember 2018-12-31 0000790051 csl:RestrictedStockAwardMember 2017-12-31 0000790051 csl:EmployeeStockOptionAnnualEquityGrantMember 2018-01-01 2018-12-31 0000790051 us-gaap:DeferredCompensationShareBasedPaymentsMember 2017-01-01 2017-12-31 0000790051 us-gaap:DeferredCompensationShareBasedPaymentsMember 2018-01-01 2018-12-31 0000790051 us-gaap:RestrictedStockUnitsRSUMember 2017-12-31 0000790051 csl:ExecutiveIncentiveProgramMember 2018-12-31 0000790051 csl:PerformanceShareAwardMember 2018-12-31 0000790051 us-gaap:RestrictedStockUnitsRSUMember 2018-12-31 0000790051 csl:Q22018StockOptionandStockAppreciationRightGrantMember 2018-01-01 2018-12-31 0000790051 us-gaap:RestrictedStockUnitsRSUMember 2016-12-31 0000790051 csl:EmployeeStockOptionOnetimeGrantMember 2018-01-01 2018-12-31 0000790051 csl:PerformanceShareAwardMember 2017-12-31 0000790051 csl:FluidTechnologiesMember 2017-12-31 0000790051 csl:InterconnectTechnologiesMember 2017-12-31 0000790051 csl:BrakeAndFrictionMember 2017-12-31 0000790051 csl:FluidTechnologiesMember 2018-12-31 0000790051 csl:BrakeAndFrictionMember 2018-12-31 0000790051 csl:InterconnectTechnologiesMember 2018-12-31 0000790051 us-gaap:ContractTerminationMember 2017-01-01 2017-12-31 0000790051 csl:EmployeeSeveranceAndBenefitArrangementsMember 2018-01-01 2018-12-31 0000790051 csl:NoncashAcceleratedDepreciationMember 2017-01-01 2017-12-31 0000790051 us-gaap:ContractTerminationMember 2018-01-01 2018-12-31 0000790051 csl:RelocateandReinstallEquipmentMember 2016-01-01 2016-12-31 0000790051 us-gaap:OtherRestructuringMember 2016-01-01 2016-12-31 0000790051 us-gaap:EmployeeRelocationMember 2017-01-01 2017-12-31 0000790051 csl:NoncashAcceleratedDepreciationMember 2018-01-01 2018-12-31 0000790051 csl:NoncashAcceleratedDepreciationMember 2016-01-01 2016-12-31 0000790051 us-gaap:EmployeeRelocationMember 2016-01-01 2016-12-31 0000790051 us-gaap:OtherRestructuringMember 2017-01-01 2017-12-31 0000790051 csl:RelocateandReinstallEquipmentMember 2017-01-01 2017-12-31 0000790051 csl:EmployeeSeveranceAndBenefitArrangementsMember 2017-01-01 2017-12-31 0000790051 us-gaap:OtherRestructuringMember 2018-01-01 2018-12-31 0000790051 csl:EmployeeSeveranceAndBenefitArrangementsMember 2016-01-01 2016-12-31 0000790051 us-gaap:EmployeeRelocationMember 2018-01-01 2018-12-31 0000790051 us-gaap:ContractTerminationMember 2016-01-01 2016-12-31 0000790051 csl:RelocateandReinstallEquipmentMember 2018-01-01 2018-12-31 0000790051 csl:ManufacturingOperationsMember csl:BrakeAndFrictionMember 2018-01-01 2018-12-31 0000790051 us-gaap:CostOfSalesMember 2018-01-01 2018-12-31 0000790051 us-gaap:ResearchAndDevelopmentExpenseMember 2018-01-01 2018-12-31 0000790051 us-gaap:OtherIncomeMember 2016-01-01 2016-12-31 0000790051 us-gaap:CostOfSalesMember 2016-01-01 2016-12-31 0000790051 us-gaap:ResearchAndDevelopmentExpenseMember 2017-01-01 2017-12-31 0000790051 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2016-01-01 2016-12-31 0000790051 us-gaap:ResearchAndDevelopmentExpenseMember 2016-01-01 2016-12-31 0000790051 us-gaap:CostOfSalesMember 2017-01-01 2017-12-31 0000790051 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2018-01-01 2018-12-31 0000790051 us-gaap:OtherIncomeMember 2017-01-01 2017-12-31 0000790051 us-gaap:SellingGeneralAndAdministrativeExpensesMember 2017-01-01 2017-12-31 0000790051 us-gaap:OtherIncomeMember 2018-01-01 2018-12-31 0000790051 csl:ManufacturingOperationsMember csl:BrakeAndFrictionMember 2018-12-31 0000790051 us-gaap:OneTimeTerminationBenefitsMember csl:MedicalBusinessMember csl:InterconnectTechnologiesMember 2017-09-30 0000790051 csl:EmployeeSeveranceAndBenefitArrangementsMember csl:MedicalBusinessMember csl:InterconnectTechnologiesMember 2018-12-31 0000790051 csl:EmployeeSeveranceAndBenefitArrangementsMember csl:MedicalBusinessMember csl:InterconnectTechnologiesMember 2018-01-01 2018-12-31 0000790051 srt:MaximumMember 2018-12-31 0000790051 2018-10-01 2018-12-31 0000790051 2018-07-01 2018-09-30 0000790051 srt:MinimumMember 2018-12-31 0000790051 us-gaap:OtherNoncurrentAssetsMember 2018-12-31 0000790051 us-gaap:OtherNoncurrentLiabilitiesMember 2018-12-31 0000790051 us-gaap:OtherNoncurrentLiabilitiesMember 2017-12-31 0000790051 us-gaap:OtherNoncurrentAssetsMember 2017-12-31 0000790051 us-gaap:ConstructionInProgressMember 2017-12-31 0000790051 csl:BuildingAndLeaseholdImprovementsMember 2018-12-31 0000790051 us-gaap:MachineryAndEquipmentMember 2018-12-31 0000790051 csl:BuildingAndLeaseholdImprovementsMember 2017-12-31 0000790051 us-gaap:LandMember 2017-12-31 0000790051 us-gaap:LandMember 2018-12-31 0000790051 us-gaap:ConstructionInProgressMember 2018-12-31 0000790051 us-gaap:MachineryAndEquipmentMember 2017-12-31 0000790051 csl:ConstructionMaterialsMember 2017-12-31 0000790051 csl:BrakeAndFrictionMember 2016-12-31 0000790051 csl:FluidTechnologyMember 2016-12-31 0000790051 csl:FluidTechnologyMember 2017-01-01 2017-12-31 0000790051 csl:FluidTechnologyMember 2018-12-31 0000790051 csl:FluidTechnologyMember 2017-12-31 0000790051 us-gaap:PensionPlansDefinedBenefitMember 2018-01-01 2018-12-31 0000790051 csl:ConstructionMaterialsMember 2016-12-31 0000790051 csl:FluidTechnologyMember 2018-01-01 2018-12-31 0000790051 csl:ConstructionMaterialsMember 2018-12-31 0000790051 csl:InterconnectTechnologiesMember 2016-12-31 0000790051 us-gaap:OtherIntangibleAssetsMember 2018-01-01 2018-12-31 0000790051 us-gaap:CustomerRelationshipsMember 2018-01-01 2018-12-31 0000790051 us-gaap:IntellectualPropertyMember 2018-01-01 2018-12-31 0000790051 csl:PatentsAndIntellectualPropertyMember 2017-12-31 0000790051 us-gaap:OtherIntangibleAssetsMember 2018-12-31 0000790051 csl:PatentsAndIntellectualPropertyMember 2018-12-31 0000790051 us-gaap:OtherIntangibleAssetsMember 2017-12-31 0000790051 us-gaap:CustomerRelationshipsMember 2018-12-31 0000790051 us-gaap:TradeNamesMember 2017-12-31 0000790051 us-gaap:TradeNamesMember 2018-12-31 0000790051 us-gaap:CustomerRelationshipsMember 2017-12-31 0000790051 csl:FoodServiceProductsMember 2017-12-31 0000790051 csl:WellmanTradeNameMember csl:BrakeAndFrictionMember 2016-09-30 0000790051 csl:BrakeAndFrictionMember 2016-09-30 0000790051 csl:FoodServiceProductsMember 2016-12-31 0000790051 csl:BrakeAndFrictionMember 2016-07-01 2016-09-30 0000790051 csl:WellmanTradeNameMember csl:BrakeAndFrictionMember 2016-07-01 2016-09-30 0000790051 csl:SeniorNotesPayable5.125PercentDue2020Member us-gaap:FairValueInputsLevel2Member 2018-12-31 0000790051 csl:SeniorNotesPayable3.5PercentDue2024Member us-gaap:FairValueInputsLevel2Member 2017-12-31 0000790051 csl:SeniorNotesPayable3.75PercentDue2027Member us-gaap:FairValueInputsLevel2Member 2017-12-31 0000790051 csl:SeniorNotesPayable3.5PercentDue2024Member 2017-12-31 0000790051 csl:SeniorNotesPayable3.75PercentDue2022Member 2018-12-31 0000790051 csl:SeniorNotesPayable5.125PercentDue2020Member 2017-12-31 0000790051 csl:SeniorNotesPayable3.5PercentDue2024Member 2018-12-31 0000790051 csl:SeniorNotesPayable3.75PercentDue2022Member 2017-12-31 0000790051 csl:SeniorNotesPayable3.5PercentDue2024Member us-gaap:FairValueInputsLevel2Member 2018-12-31 0000790051 csl:SeniorNotesPayable5.125PercentDue2020Member us-gaap:FairValueInputsLevel2Member 2017-12-31 0000790051 csl:SeniorNotesPayable3.75PercentDue2027Member 2018-12-31 0000790051 csl:SeniorNotesPayable3.75PercentDue2027Member us-gaap:FairValueInputsLevel2Member 2018-12-31 0000790051 csl:SeniorNotesPayable3.75PercentDue2027Member 2017-12-31 0000790051 csl:SeniorNotesPayable3.75PercentDue2022Member us-gaap:FairValueInputsLevel2Member 2017-12-31 0000790051 csl:SeniorNotesPayable3.75PercentDue2022Member us-gaap:FairValueInputsLevel2Member 2018-12-31 0000790051 csl:SeniorNotesPayable5.125PercentDue2020Member 2018-12-31 0000790051 csl:SeniorNotesPayable5.125PercentDue2020Member 2010-12-09 0000790051 csl:SeniorNotesPayable3.75PercentDue2022Member 2012-11-20 0000790051 csl:SeniorNotesPayable3.75PercentDue2027Member 2017-11-16 2017-11-16 0000790051 csl:SeniorNotesPayable5.125PercentDue2020Member 2010-12-09 2010-12-09 0000790051 csl:SeniorNotesPayable3.75PercentDue2027Member 2017-11-16 0000790051 us-gaap:RevolvingCreditFacilityMember csl:CreditAgreementMember 2017-02-20 0000790051 us-gaap:RevolvingCreditFacilityMember csl:CreditAgreementMember 2017-03-31 0000790051 csl:SeniorNotesPayable3.5PercentDue2024Member 2017-11-16 0000790051 csl:SeniorNotesPayable3.5PercentDue2024Member 2017-11-16 2017-11-16 0000790051 us-gaap:LetterOfCreditMember us-gaap:LineOfCreditMember 2018-12-31 0000790051 us-gaap:LetterOfCreditMember csl:CreditAgreementMember 2017-02-21 0000790051 csl:SeniorNotesPayable3.75PercentDue2022Member 2012-11-20 2012-11-20 0000790051 us-gaap:RevolvingCreditFacilityMember csl:CreditAgreementMember 2017-02-21 0000790051 us-gaap:LineOfCreditMember 2018-12-31 0000790051 csl:ChangeOfControlMember 2018-01-01 2018-12-31 0000790051 us-gaap:PensionPlansDefinedBenefitMember 2017-01-01 2017-12-31 0000790051 us-gaap:PensionPlansDefinedBenefitMember 2016-01-01 2016-12-31 0000790051 us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2018-12-31 0000790051 us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2017-12-31 0000790051 us-gaap:FixedIncomeFundsMember us-gaap:FairValueInputsLevel1Member 2018-12-31 0000790051 us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2017-01-01 2017-12-31 0000790051 us-gaap:EquityFundsMember us-gaap:FairValueInputsLevel1Member 2018-12-31 0000790051 us-gaap:PensionPlansDefinedBenefitMember 2018-12-31 0000790051 us-gaap:PensionPlansDefinedBenefitMember 2017-12-31 0000790051 us-gaap:PensionPlansDefinedBenefitMember 2016-12-31 0000790051 us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2018-01-01 2018-12-31 0000790051 us-gaap:CashMember us-gaap:FairValueInputsLevel1Member 2017-12-31 0000790051 us-gaap:USTreasurySecuritiesMember us-gaap:FairValueInputsLevel1Member 2017-12-31 0000790051 us-gaap:FixedIncomeFundsMember us-gaap:FairValueInputsLevel1Member 2017-12-31 0000790051 us-gaap:FairValueInputsLevel1Member 2017-12-31 0000790051 us-gaap:CashMember us-gaap:FairValueInputsLevel1Member 2018-12-31 0000790051 us-gaap:USTreasurySecuritiesMember us-gaap:FairValueInputsLevel1Member 2018-12-31 0000790051 us-gaap:FairValueInputsLevel1Member 2018-12-31 0000790051 us-gaap:EquityFundsMember us-gaap:FairValueInputsLevel1Member 2017-12-31 0000790051 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-01-01 2017-12-31 0000790051 us-gaap:AccumulatedTranslationAdjustmentMember 2017-12-31 0000790051 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2017-01-01 2017-12-31 0000790051 us-gaap:AccumulatedTranslationAdjustmentMember 2017-01-01 2017-12-31 0000790051 us-gaap:AccumulatedTranslationAdjustmentMember 2018-01-01 2018-12-31 0000790051 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-01-01 2018-12-31 0000790051 us-gaap:AccumulatedTranslationAdjustmentMember 2016-12-31 0000790051 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-12-31 0000790051 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-12-31 0000790051 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2016-12-31 0000790051 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-12-31 0000790051 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-01-01 2018-12-31 0000790051 us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2017-12-31 0000790051 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-01-01 0000790051 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2016-12-31 0000790051 us-gaap:AccumulatedTranslationAdjustmentMember 2018-12-31 0000790051 us-gaap:CashAndCashEquivalentsMember 2018-12-31 0000790051 us-gaap:ShortTermInvestmentsMember 2017-12-31 0000790051 us-gaap:CashAndCashEquivalentsMember 2017-12-31 0000790051 us-gaap:ShortTermInvestmentsMember 2018-12-31 0000790051 us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2018-12-31 0000790051 us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2017-12-31 0000790051 us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0000790051 us-gaap:ForeignExchangeForwardMember us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0000790051 us-gaap:DesignatedAsHedgingInstrumentMember 2018-12-31 0000790051 srt:MaximumMember us-gaap:ForeignExchangeForwardMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-01-01 2018-12-31 0000790051 srt:MaximumMember us-gaap:ForeignExchangeForwardMember us-gaap:NondesignatedMember 2018-01-01 2018-12-31 0000790051 2017-07-01 2017-09-30 0000790051 2017-04-01 2017-06-30 0000790051 2017-10-01 2017-12-31 0000790051 2017-01-01 2017-03-31 0000790051 2018-01-01 2018-03-31 0000790051 2018-04-01 2018-06-30 0000790051 us-gaap:SubsequentEventMember 2019-01-11 2019-01-11 csl:reporting_unit iso4217:USD xbrli:shares xbrli:pure iso4217:CHF csl:item csl:segment iso4217:GBP iso4217:USD xbrli:shares csl:lease
 
 
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2018
 carlislelogoa02.jpg
www.carlisle.com 
 
Commission File Number 1‑9278
CARLISLE COMPANIES INCORPORATED
(Exact name of registrant as specified in its charter)
Delaware
31‑1168055
(State of incorporation)
(I.R.S. Employer I.D. No)
(480) 781-5000
(Telephone Number)
 
16430 North Scottsdale Road, Suite 400, Scottsdale, Arizona 85254
(Address of principal executive office)
 
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
    
Name of each exchange on which registered
Common stock, $1 par value
 
New York Stock Exchange
Preferred Stock Purchase Rights, $1 par value
 
New York Stock Exchange
Indicate by check mark if the registrant is a well‑known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☒ No ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐  No ☒
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 and posted 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 and post such files). Yes ☒  No ☐
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S‑K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10‑K or any amendment to this Form 10‑K. ☒
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 ☒
The aggregate market value of the shares of common stock of the registrant held by non‑affiliates was approximately $6.3 billion based upon the closing price of the common stock on the New York Stock Exchange on June 30, 2018.
As of February 7, 2019, 57,278,397 shares of common stock of the registrant were outstanding.
 
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the definitive Proxy Statement for the Annual Meeting of Shareholders to be held on May 8, 2019 are incorporated by reference in Part III.
 
 
 
 
 



TABLE OF CONTENTS
 
 
Page
 
 
 
 
 
 
 
 



Table of Contents


PART I
 
Item 1.  Business.

Overview
 
Carlisle Companies Incorporated's (“Carlisle”, the “Company”, “we”, “us” or “our”) operations began in 1917, and is a diversified, global portfolio of niche brands that manufacture highly engineered products. Our Company website is www.carlisle.com, through which we make available, free of charge, our Annual Report on Form 10‑K, Quarterly Reports on Form 10‑Q and Current Reports on Form 8‑K and all amendments to those reports, as soon as reasonably practicable after these reports are electronically filed with or furnished to the Securities and Exchange Commission (“SEC”). All references to "Notes" refer to our Notes to Consolidated Financial Statements in this Annual Report on Form 10-K.
 
Business Strategy
 
We strive to be the market leader of highly‑engineered products in the various markets we serve. Under Vision 2025, our key pillars include: being dedicated to driving above market growth, utilizing the Carlisle Operating System (“COS”) consistently to drive efficiencies and operating leverage, building scale with synergistic acquisitions, continuing to invest in and develop exceptional talent and deploying capital into capital expenditures, share repurchases and dividends.

We utilize COS, an operating structure and strategy deployment system based on lean enterprise and six sigma principles, to drive improving operational performance. COS is a continuous improvement process that defines the way we do business. Waste is eliminated and efficiencies are improved enterprise wide, allowing us to increase overall profitability. Improvements are not limited to production areas, as COS is also driving improvements in new product innovation, engineering, supply chain management, warranty and product rationalization. COS has created a culture of continuous improvement across all aspects of our business operations.

See Description of Business by Segment below for a more detailed discussion of our Vision 2025 strategy.
 
As noted above, a significant part of our strategy is to build scale with synergistic acquisitions. Synergies considered in making an acquisition include consolidation opportunities, technology, customer dispersion, operating capabilities and earnings growth potential. We acquired four businesses during 2018, which complement our existing Carlisle Construction Materials (“CCM”) and Carlisle Interconnect Technologies (“CIT”) segments. In addition, on January 11, 2019, we completed the acquisition of Petersen Aluminum Corporation ("Petersen") through our CCM segment (refer to Note 20).

We also pursue the sale of a business when it is determined they no longer fit within the Company’s long‑term goals or strategy. Accordingly, on March 20, 2018, we completed the sale of our Carlisle FoodService Products ("CFS") segment to The Jordan Company for $758.0 million (refer to Note 4).

For more details regarding acquisitions of the Company’s businesses during the past three years, refer to Note 3.
 

3

Table of Contents


Description of Businesses by Segment
 
Carlisle Construction Materials (“CCM”)
 
Products, Markets and Locations

The CCM segment is a market leader in designing, manufacturing and selling thermoplastic polyolefin (“TPO”), ethylene propylene diene monomer rubber (“EPDM”) and polyvinyl chloride (“PVC”) membrane and metal roofing systems. CCM also manufactures and distributes energy‑efficient rigid foam insulation panels for all roofing applications. Roofing materials and insulation are sold together in warranted systems or separately in non-warranted systems to the new construction, re-roofing and maintenance, general construction and industrial markets. The roofing materials, including insulation, are primarily sold under the SynTec, Versico and Hunter Panels product lines in the United States of America (“U.S.” or “United States”) and throughout the world and, in addition, the Resitrix and Hertalan product lines in Europe. The segment manufactures and sells liquid and spray‑applied waterproofing membranes, vapor and air barriers and HVAC duct sealants and hardware for the commercial and residential construction markets through its coatings and waterproofing operation. The segment manufactures block molded expanded polystyrene for a variety of end markets, predominantly roofing and waterproofing through its Insulfoam product line. CCM also offers a broad range of polyurethane products and solutions across a broad diversity of markets and applications. CCM operates manufacturing facilities located throughout the United States, its primary market, and in Germany, the Netherlands and Romania. The majority of CCM’s products are sold through a network of authorized sales representatives and distributors.

Key Raw Materials

Key raw materials for this segment include methylene diphenyl diisocyanate (“MDI”), polyol, EPDM polymer, TPO polymer, carbon black and coated steel. These raw materials generally have at least two vendor sources to better assure adequate supply. The vendor typically has multiple processing facilities for key raw materials that are single sourced.
 
Seasonality and Working Capital

Revenues and earnings for CCM have historically been higher in the second and third quarters due to increased construction activity during those periods from favorable weather conditions.
 
The working capital practices for this segment include:
 
Standard accounts receivable payment terms of 45 days to 90 days.
Standard accounts payable payment terms of 30 days to 60 days.
Inventories are maintained in sufficient quantities to meet forecasted demand.
 
Customer Concentration and Competition

CCM serves a large and diverse customer base; however, in 2018 two of CCM's largest customers represented 18.4% and 14.2% of this segment’s revenues. One of these customers also represented 11.8% of the Company’s consolidated revenues. The loss of either of these customers could have a material adverse effect on this segment’s revenues and operating income. Backlog orders are not considered a significant factor of CCM’s business and were $90.1 million and $64.7 million as of December 31, 2018 and 2017, respectively; however, not all of these orders are firm in nature. All orders are reasonably expected to be filled in 2019.

This segment faces competition from numerous competitors that produce roofing, insulation and waterproofing products for commercial and residential applications. The level of competition within this market varies by product line. As one of four major manufacturers in the single‑ply industry, CCM competes through innovative products, long‑term warranties and customer service. CCM offers separately‑priced extended warranty contracts on certain of its products ranging from five to 40 years, the most significant being those offered on its installed single-ply roofing systems, subject to certain exclusions, covers leaks in the roofing system attributable to a problem with the particular product or the installation of the product. The building owner must have the roofing system installed by an independent authorized roofing contractor trained by CCM to install its roofing systems in order to qualify for the warranty.


4

Table of Contents


Vision 2025 Strategy

Our strategy under Vision 2025 for the CCM segment is to:

Maintain its above average margin profile;
Capture significant after market opportunities as buildings in the US approach “re-roofing” vintage;
Further expand our presence in niche high-growth and high-margin opportunities of the building envelope via liquid applied roofing and spray foam polyurethanes;
Expand internationally, especially into Europe where there is a large market to displace traditional asphalt roofing with EPDM roofing; and
Expand our presence in the metal roofing market.

Key growth initiatives:

Capture market share based on labor and energy efficiency;
Leverage the Carlisle Experience to create the preferred choice through operational excellence;
Continued development of proprietary, differentiated products;
Utilize training to drive a culture of continuous learning that creates brand loyalty; and
Focus mergers and acquisitions on synergistic building envelope opportunities.

On January 11, 2019, we completed the acquisition of Petersen, a privately-held manufacturer of high-quality metal roofing products. Petersen's primary business is the manufacture and distribution of market leading architectural metal roof panels, steel and aluminum flat sheets and coils, wall panels, perimeter roof edge systems and related accessories for commercial, residential, institutional, industrial and agricultural markets in the United States.
 
Carlisle Interconnect Technologies (“CIT”)

Products, Markets and Locations
 
The CIT segment is a market leader in engineering, manufacturing and selling high‑performance wire, cable, connectors, contacts and cable assemblies and satellite communication equipment for the transfer of power and data primarily for the aerospace, medical, defense electronics, test and measurement equipment and select industrial markets. This segment primarily operates manufacturing facilities in the United States, China and Mexico, with the United States, Europe and China being the primary target regions for sales. Sales are made by direct sales personnel and independent sales representatives.
 
Key Raw Materials

Key raw materials for this segment include gold, copper conductors that are plated with tin, nickel, or silver, polyimide tapes, polytetrafluoroethylene (“PTFE”) tapes, PTFE fine powder resin, thermoplastic resins, stainless steel, beryllium copper rod, machined metals, plastic parts and various marking and identification materials. These raw materials are typically sourced worldwide and generally have at least two supplier sources to better assure adequate supply, except when prohibited by customer contracts, which approximated 10% of purchases in 2018.

Seasonality and Working Capital

The working capital practices for this segment include:
 
Standard accounts receivable payment terms of 30 days to 90 days.
Standard accounts payable payment terms of 30 days to 60 days.
Inventories are maintained in sufficient quantities to meet forecasted demand. The majority of CIT’s sales are from made‑to‑order products, resulting in inventories purchased on demand.
 
Customer Concentration and Competition

CIT serves a large and diverse customer base; however, in 2018 one customer represented 10.7% of this segment’s revenues but did not represent 10% of the Company’s consolidated revenues. The loss of this customer could have a material adverse effect on this segment’s revenues and operating income. Backlog orders were $319.2 million and $299.9 million as of December 31, 2018 and 2017, respectively; however, not all of these orders are firm in nature. Of

5

Table of Contents


the $319.2 million in backlog orders as of December 31, 2018, $13.8 million is not reasonably expected to be filled in 2019.
 
The CIT segment faces competition from numerous competitors within each of the markets it serves. While product specifications, certifications and life cycles vary by market, the CIT segment primarily positions itself to gain design specification for customer platforms or products with long life cycles and high barriers to entry, such as in the aerospace and medical markets that generally have high standards for product certification as deemed by the Federal Aviation Administration (“FAA”) and Food and Drug Administration (“FDA”), respectively. The CIT segment competes primarily on the basis of its product performance and its ability to meet its customers’ highly specific design, engineering and delivery needs on a timely basis. Relative to many of its competitors that are large multi‑national corporations, the CIT segment retains the ability to remain agile and respond quickly to customer needs and market opportunities.

Vision 2025 Strategy

Our strategy under Vision 2025 for the CIT segment is to focus on highly regulated industries that have the characteristics of high performance, mission critical products designed to operate in harsh environments with significant barriers to entry and attractive margins. The primary industries currently include commercial aerospace and medical devices.
In commercial aerospace the CIT segment is focused on:
Increasing content per aircraft across a wide range of products;
Being present on all key aircraft platforms; and
Further expanding content per aircraft into passenger cabins, flight deck, and aircraft control systems.

In medical devices the CIT segment is focused on:
Capitalizing on growing spend on medical equipment and technology, driven by an aging population in key regions, and increasing preference for minimally invasive procedures by patients, hospitals and insurance providers; and
Growth in the attractive electrosurgical segment by leveraging current technology and customer relationships and making targeted acquisitions to grow in the high-potential cardiovascular monitoring devices market.

Key growth initiatives:
Increase seat content per aircraft across all product groups
Build and convert medical original equipment manufacturers ("OEM") project pipeline;
Establish new OEM relationships and drive new product development in test and measurement;
Ensure organization alignment is market focused to drive accelerated organic growth; and
Focus merger and acquisition efforts on commercial aerospace, medical technologies and test and measurement end markets

Carlisle Fluid Technologies (“CFT”)
 
Products, Markets and Locations

The CFT segment is a market leader in designing, manufacturing and selling highly‑engineered liquid and powder finishing equipment and system components primarily in the automotive, automotive refinishing, aerospace, agriculture, construction, marine and rail industries. The segment operates manufacturing facilities primarily in the United States, the United Kingdom ("U.K.") and Switzerland, and assembly and distribution facilities in China and Japan, with approximately 60% of its revenues outside the United States. The CFT segment manufactures and sells products that are sold under the brand names of Binks®, DeVilbiss®, Ransburg®, BGK® and MS Powder®. The majority of sales into CFT's industries are made through a worldwide network of distributors, integrators and some direct to end‑user sales. These business relationships are managed primarily through direct sales personnel worldwide.
 
Key Raw Materials

Key raw materials for this segment include carbon and various grades of stainless steel, brass, aluminum, copper, machined metals, carbide, machined plastic parts and PTFE. These raw materials are typically sourced worldwide and have at least two vendor sources to better assure adequate supply.
 

6

Table of Contents


Seasonality and Working Capital

Approximately 20% of CFT’s annual revenues are for the development and in some cases assembly of large fluid handling or other application systems projects. Timing of these system sales can result in revenues that are higher in certain quarters versus other quarters within the same calendar year.
 
The working capital practices for this segment include:
 
Standard accounts receivable payment terms of 30 days to 90 days.
Standard accounts payable payment terms of 30 days to 60 days.
Inventories are maintained in sufficient quantities to meet forecasted demand.
 
Customer Concentration and Competition

CFT serves a large and diverse customer base and in 2018 no single customer accounted for 10% or more of this segment’s revenues. The loss of any single customer would not have a material adverse effect on the segment’s revenues and operating income. Backlog orders are not considered a significant factor of CFT’s business and were $23.4 million and $31.9 million as of December 31, 2018 and 2017, respectively; however, not all of these orders are firm in nature. All orders are reasonably expected to be filled in 2019.

The CFT segment competes against both regional and international manufacturers. Major competitive factors include innovative designs, the ability to provide customers with lower cost of ownership, dependable performance and high quality at a competitive price. CFT’s product's ability to spray, mix or deliver a wide range of coatings, applied uniformly in exact increments, is critical to the overall appearance of the applied coatings and functionality. The segment’s installed base of global customers is supported by a worldwide distribution network with the ability to deliver critical spare parts and other services. Brands that are well recognized and respected internationally, combined with a diverse base of customers, applications and industries served, positions the CFT segment to continue designing patented, innovative equipment and solutions for customers across the globe.

Vision 2025 Strategy

Our strategy under Vision 2025 for the CFT segment is to focus on key end markets of automotive and automotive refinish, transportation and general industrial.
In the automotive and automotive refinish markets CFT is focused on:
Growing sales of core spray guns in automotive OEM and automotive refinishing markets by capitalizing on strong brand recognition and solid customer advocacy among key automotive OEMs; and
Further expanding in mixing, metering, and dispensing viscous liquids or powder coating equipment through our energy efficient pumps, leveraging those pumps to support core spray gun sales and expand in adjacent markets.

In the transportation and general industrial markets CFT is focused on:
Leveraging the CFT brand and distribution in Asia;
Scaling the powder business outside of Europe;
Expanding pump sales in the attractive reciprocating pumps market;
Entering the market for fast-set applications such as foam and polyurethane; and
Expanding into sealants and adhesives.

Key growth initiatives:
Expand global distribution network by developing partners in growing regions and markets;
Expand product portfolio by quickly launching new products in adjacent markets;
Fill gaps in existing product portfolio;
Increase market share by driving deep customer relationships and operational excellence; and
Focus merger and acquisition efforts on targets that precisely deliver fluid management solutions.
 

7

Table of Contents


Carlisle Brake & Friction (“CBF”)
 
Products, Markets and Locations

The CBF segment is a market leader in designing, manufacturing and selling high-performance braking products and systems and clutch transmission friction products for off‑highway, on‑highway, aircraft and other industrial applications. CBF also includes the performance racing group which designs, manufactures and sells high‑performance motorsport braking products. The CBF segment manufactures and sells products which are sold under several brand names, such as Hawk®, Wellman® and Velvetouch®. CBF’s products are sold by direct sales personnel to Original Equipment Manufacturers (“OEMs”), mass merchandisers and various wholesale and industrial distributors around the world, including North America, Europe, Asia and South America. Key markets served include construction, agriculture, mining, aircraft, on-highway and performance racing. Primary manufacturing facilities are located in the United States, the United Kingdom, Italy and China.
 
Key Raw Materials

The brake manufacturing operations require the use of various metal products such as castings, pistons, springs and bearings. With respect to friction products, key raw materials used are fiberglass, phenolic resin, metallic chips, copper and iron powders, steel, custom‑fabricated cellulose sheet and various other organic materials. These raw materials are sourced worldwide to better assure adequate supply. Key raw materials generally have at least two vendor sources.
 
Seasonality and Working Capital

The working capital practices for this segment include:

Standard accounts receivable payment terms of 30 days to 90 days.
Standard accounts payable payment terms of 30 days to 90 days.
Inventories are maintained in sufficient quantities to meet forecasted demand.
 
Customer Concentration and Competition

CBF serves a large and diverse customer base; however, in 2018 one customer represented 20.2% of this segment’s revenues but did not represent 10% of the Company’s consolidated revenues. The loss of this customer could have a material adverse effect on this segment’s revenues and operating income. Backlog orders were $190.8 million and $190.3 million as of December 31, 2018 and 2017, respectively; however, not all of these orders are firm in nature. All orders are reasonably expected to be filled in 2019.
 
This segment strives to be a market leader by competing globally against regional and international manufacturers. Few competitors participate in all served markets. A majority of competitors participate in only a few of CBF’s served markets on a regional or global basis. Markets served are competitive and the major competitive factors include product performance, quality, product availability and price. The relative importance of these competitive factors varies by market segment and channel.

Vision 2025 Strategy

Our strategy under Vision 2025 for the CBF segment is to be the top brand in off-highway commercial transportation as the only supplier able to offer a complete “pedal to the wheel” solution and continue to participate in the mining and machinery equipment markets where demand remains supportive.
Key growth initiatives:
Increase presence through capitalizing on global acceleration of growth in served regions;
Product innovation by leveraging substantial research and development capabilities;
Increase differentiated technology via expansion of carbon technology;
Provide innovative highly-engineered vehicle solutions; and
Operational excellence through facility rationalization, COS and automation.


8

Table of Contents


Intellectual Property
 
We own or hold the right to use a variety of patents, trademarks, licenses, inventions, trade secrets and other intellectual property rights. We have adopted a variety of measures and programs to ensure the continued validity and enforceability of our various intellectual property rights.
 
Research and Development
 
Research and development activities include the development of new product lines, the modification of existing product lines to comply with regulatory changes and the research of cost efficiencies through raw material substitution and process improvements. Our research and development expenses were $55.1 million, $51.3 million and $45.4 million, representing 1.2%, 1.4% and 1.3% of revenues in 2018, 2017 and 2016, respectively.
 
Environmental Matters
 
Refer to “Part II—Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Environmental” and Note 17 for information regarding environmental matters.
 
Labor Matters
 
As of December 31, 2018, we employed approximately 13,000 people, excluding 1,900 contractors. Employees represented by unions, local work councils or collective bargaining agreements as of December 31, 2018, are listed below, with the number of employees represented and the expiration date of the applicable agreements:
Location
 
Number of Agreements
 
Number of
Employees Represented
 
Expiration Date
 
CIT - China
 
2

 
3,071

 
December 2019
 
CIT - Mexico
 
1

 
900

 
N/A
 
CBF - Italy
 
3

 
298

 
December 2018
December 2019
December 2020
(1) 
CCM - Germany
 
2

 
143

 
May 2020
 
CCM - Netherlands
 
1

 
119

 
June 2019
 
CBF - United Kingdom
 
1

 
109

 
N/A
 
CIT - Switzerland
 
1

 
78

 
N/A
 
CFT - Germany
 
1

 
30

 
N/A
 
CFT - Mexico
 
1

 
17

 
December 2020
 
CCM - United States
 
1

 
12

 
June 2020
 
(1) 
The agreement between CBF and its employees that expired in December 2018 is currently in negotiation for renewal.

Item 1A.  Risk Factors.
 
The Company’s business, financial condition, results of operations and cash flows can be affected by a number of factors including but not limited to those set forth below, those set forth in our “Forward Looking Statements” disclosure in Item 7 and those set forth elsewhere in this Annual Report on Form 10‑K, any one of which could cause the Company’s actual results to vary materially from recent results or from anticipated future results.
 
The Company’s earnings growth strategy is partially dependent on the acquisition and successful integration of other businesses.

The Company has a history of acquiring businesses as part of its earnings growth strategy. Typically, the Company considers acquiring companies than can be integrated within an existing business. Acquisitions of this type involve numerous risks, which may include a failure to realize expected revenue growth and operating and cost synergies from integration initiatives to combine the acquired business with an existing business; increasing dependency on the markets served by the combined businesses; increased debt to finance the acquisitions or the inability to obtain adequate financing on reasonable terms. 

9

Table of Contents


The Company also considers the acquisition of businesses that may operate independent of existing businesses that involve similar risks with respect to a failure to realize expected revenue growth or operating and cost reductions within the acquired business; and could increase the possibility of diverting corporate management’s attention from its existing operations.
The successful realization of revenue growth, cost reductions and synergies with our existing businesses, and within acquired stand-alone businesses, and therefore increases in profitability overall, is dependent upon successful integration initiatives. If these integration initiatives do not occur, there may be a negative effect on the Company’s business, financial condition, results of operations and cash flows.
See “Part II—Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” for recent acquisition information.

Several of the market segments that the Company serves are cyclical and sensitive to domestic and global economic conditions.

Several of the market segments in which the Company sells its products are, to varying degrees, cyclical and may experience periodic downturns in demand. For example, the CBF segment is susceptible to downturns in the construction, agriculture and mining industries. The CIT segment is susceptible to downturns in the commercial airline industry, and the CCM segment is susceptible to downturns in the commercial construction industry.

Uncertainty regarding global economic conditions may have an adverse effect on the businesses, results of operations and financial condition of the Company and its customers, distributors and suppliers. Among the economic factors which may affect performance are: manufacturing activity, commercial and residential construction, difficulties entering new markets and general economic conditions such as inflation, deflation, interest rates and credit availability. These effects may, among other things, negatively impact the level of purchases, capital expenditures and creditworthiness of the Company’s customers, distributors and suppliers, and therefore, the Company’s results of operations, margins and orders. The Company cannot predict if, when or how much worldwide economic conditions will fluctuate. These conditions are highly unpredictable and beyond the Company's control. If these conditions deteriorate, however, the Company’s business, financial condition, results of operations and cash flows could be adversely affected.
 
The Company is subject to risks arising from international economic, political, legal and business factors.

The Company has increased, and anticipates it will continue to increase, its presence in global markets. Approximately 22.7% of the Company’s revenues in 2018 were generated outside the United States. The Company expects these revenues will grow as the Company continues to target global markets. In addition, to compete globally, all of the Company’s segments have manufacturing facilities outside the United States.
 
The Company’s increasing reliance on international revenues and international manufacturing bases exposes its business, financial condition, operating results and cash flows to a number of risks, including price and currency controls; government embargoes or foreign trade restrictions, including import and export tariffs; extraterritorial effects of U.S. laws such as the Foreign Corrupt Practices Act; expropriation of assets; war, civil uprisings, acts of terror and riots; political instability; nationalization of private enterprises; hyperinflationary conditions; the necessity of obtaining governmental approval for new and continuing products and operations, currency conversion or repatriation of assets; legal systems of decrees, laws, taxes, regulations, interpretations and court decisions that are not always fully developed and that may be retroactively or arbitrarily applied; cost and availability of international shipping channels; and customer loyalty to local companies.

Additionally, there is uncertainty caused by the U.K.'s planned exit from the European Union commonly referred to as "Brexit." While the specific terms and impact of Brexit are not yet known, Brexit could adversely impact the U.K. and/or the European Union, and therefore the Company’s business, financial condition, results of operations and cash flows could be adversely affected.

The Company’s operations are subject to regulatory risks. 

Certain products manufactured by our businesses operating in the aerospace and medical markets are subject to extensive regulation by the FAA and FDA, respectively. It can be costly and time‑consuming to obtain and maintain regulatory approvals as well as maintain certifications to supply our products to OEM aerospace customers and to obtain regulatory approvals to market medical devices. Product approvals subject to regulations might not be granted

10

Table of Contents


for new devices on a timely basis, if at all. Proposed new regulations or changes to regulations could result in the need to incur significant additional costs to comply. Continued government scrutiny, including reviews of the FDA medical device pre‑market authorization and post‑market surveillance processes, may impact the requirements for our medical device interconnect components. Failure to effectively respond to changes to applicable laws and regulations or comply with existing and future laws and regulations may have a negative effect on the Company’s business, financial condition, results of operations and cash flows.

The Company has significant concentrations in the domestic commercial construction market.

For the year ended December 31, 2018, approximately 64.3% of the Company’s revenues and approximately 85.5% of its operating income were generated by the CCM segment. Construction spending is affected by economic conditions, changes in interest rates, demographic and population shifts and changes in construction spending by federal, state and local governments. A decline in the commercial construction market could adversely affect the Company’s business, financial condition, results of operations and cash flows. Additionally, adverse weather conditions such as heavy or sustained rainfall, cold weather and snow can limit construction activity and reduce demand for roofing materials. Weather conditions can also be a positive factor, as demand for roofing materials may rise after harsh weather conditions due to the need for replacement materials.
 
The CCM segment competes through pricing, among other factors. Increased competition in this segment has placed, and could continue to place, negative pressure on operating results in future periods.
 
The loss of, or a significant decline in business with, one or more of the Company’s key customers could adversely affect the Company’s business, financial condition, results of operations and cash flows.

The Company operates in several niche markets in which a large portion of the segment’s revenues are attributable to a few large customers. See “Item 1. Business—Overview—Description of Businesses by Segment” for a discussion of customer concentrations by segment. A significant reduction in purchases by one or more of these customers could have an adverse effect on the business, financial condition, results of operations or cash flows of one or more of the Company’s segments.
 
Some of the Company’s key customers enjoy significant purchasing power that may be used to exert pricing pressure on the Company. Additionally, as many of the Company’s businesses are part of a long supply chain to the ultimate consumer, the Company’s business, financial condition, results of operations or cash flows could be adversely affected if one or more key customers elects to in‑source or find alternative suppliers for the production of a product or products that the Company currently provides.
 
Raw material costs are a significant component of the Company’s cost structure and are subject to volatility.

The Company utilizes petroleum‑based products, steel and other commodities in its manufacturing processes. Raw materials, including inbound freight, accounted for approximately 60% of the Company’s cost of goods sold in 2018. Significant increases in the price of these materials may not be recovered through selling price increases and could adversely affect the Company’s business, financial condition, results of operations and cash flows. The Company also relies on global sources of raw materials, which could be adversely impacted by unfavorable shipping or trade arrangements, including import and export tariffs and global economic conditions. Refer to “Part II—Item 7A. Quantitative and Qualitative Disclosures About Market Risk” for additional information regarding commodity price risk.
 
Dispositions, failure to successfully complete dispositions or restructuring activities could negatively affect the Company.

From time to time, the Company, as part of its commitment to concentrate on its core business, may dispose of all or a portion of certain businesses. Such dispositions involve a number of risks and present financial, managerial and operational challenges, including diversion of management's attention from the Company’s core businesses, increased expense associated with the dispositions, potential disputes with the customers or suppliers of the disposed businesses, potential disputes with the acquirers of the disposed businesses and a potential dilutive effect on the Company’s earnings per share. If dispositions are not completed in a timely manner, there may be a negative effect on the Company’s cash flows and/or the Company’s ability to execute its strategy.
 
Additionally, from time to time, the Company may undertake consolidation and other restructuring projects in an effort to reduce costs and streamline its operations. Such restructuring activities may divert management's attention from

11

Table of Contents


the Company’s core businesses, increase expenses on a short‑term basis and lead to potential disputes with the employees, customers or suppliers of the affected businesses. If restructuring activities are not completed in a timely manner or if anticipated cost savings, synergies and efficiencies are not realized, there may be a negative effect on the Company’s business, financial condition, results of operations and cash flows.

Refer to Notes 4 and 8 for a discussion of current disposition and restructuring matters.

Currency fluctuation could have a material impact on the Company’s reported results of business operations.

The Company’s global revenues and other activities are translated into U.S. Dollars ("USD") for reporting purposes. The strengthening or weakening of the USD could result in unfavorable translation effects as the results of transactions in foreign countries are translated into USD. In addition, sales and purchases in currencies other than the USD expose the Company to fluctuations in foreign currencies relative to the USD. Increased strength of the USD will decrease the Company’s reported revenues or margins in respect of sales conducted in foreign currencies to the extent the Company is unable or determines not to increase local currency prices. Likewise, decreased strength of the USD could have a material adverse effect on the cost of materials and products purchased overseas. Many of the Company’s sales that are exported by its U.S. subsidiaries to foreign countries are denominated in USD, reducing currency exposure. However, increased strength of the USD may decrease the competitiveness of our U.S. subsidiaries’ products that are sold in USD within foreign locations.
 
The Company has entered into foreign currency forward contracts to mitigate the exposure of certain of our results of operations and cash flows to such fluctuations. See “Part II—Item 7A. Quantitative and Qualitative Disclosures About Market Risk” for a discussion on foreign currency exchange risk.

Security breaches or significant disruptions of our information technology systems or violations of data privacy laws could adversely affect our business.

We rely on information technology systems, some of which are managed by third-parties, to process, transmit and store electronic information, and to manage or support critical business processes. Security breaches of these systems could result in the unauthorized or inappropriate access to confidential information or personal data entrusted to us by our business partners. While we have experienced, and expect to continue to experience, security breaches to our information technology systems, none of them to date has had a material impact on the Company. Additionally, these systems may be disrupted as a result of attacks by computer hackers or viruses, human error or wrongdoing, operational failures or other catastrophic events. The Company leverages its internal information technology infrastructures, and those of its business partners, to enable, sustain and protect its global business interests, however, any of the aforementioned breaches or disruptions could result in legal claims, liability or penalties under privacy laws or damage to operations or to the Company's reputation, which could adversely affect our business.

We are subject to data privacy and security laws, regulations and customer-imposed controls as a result of having access to and processing confidential, personal and/or sensitive data in the course of business. If we are unable to maintain reliable information technology systems and appropriate controls with respect to privacy and security requirements, we may suffer regulatory consequences that could be costly or otherwise adversely affect our business.

Item 1B.  Unresolved Staff Comments.
 
None.
 

12

Table of Contents


Item 2.  Properties.
 
The number, location and size of the Company’s principal properties as of December 31, 2018, by segment follows: 
 
 
Number of Facilities
 
Square Footage
(in millions)
 
 
North America
 
Europe
 
Asia
 
Other
 
Total
 
Owned
 
Leased
Carlisle Construction Materials
 
49

 
10

 

 

 
59

 
5.1

 
1.2

Carlisle Interconnect Technologies
 
20

 
3

 
12

 

 
35

 
0.6

 
1.0

Carlisle Fluid Technologies
 
3

 
2

 
2

 
1

 
8

 
0.4

 
0.1

Carlisle Brake and Friction
 
4

 
2

 
4

 

 
10

 
1.0

 
0.5

Totals
 
76

 
17

 
18

 
1

 
112

 
7.1

 
2.8

 
The Company considers its principal properties, as well as the related machinery and equipment, to be generally well maintained and suitable and adequate for their intended purposes.

Item 3.  Legal Proceedings.
 
The Company is party to certain lawsuits in the ordinary course of business. Information about legal proceedings is included in Note 17, and is incorporated by reference herein. Aside from the amounts disclosed in Note 17, if any, the Company does not believe that these proceedings, individually or in the aggregate, will have a material adverse effect on its business, financial condition, results of operations or cash flows.

Item 4.  Mine Safety Disclosures.
 
Not applicable.
 
PART II
 
Item 5.  Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
 
The Company’s common stock is traded on the New York Stock Exchange under the ticker symbol "CSL." As of December 31, 2018, there were 1,206 shareholders of record. The number of beneficial holders is substantially greater than the number of record holders because a significant portion of our common stock is held of record in broker “street names.”

The Company’s purchases of its common stock during the three months ended December 31, 2018 follows:
(in thousands, except per share amounts)
 
(a)
Total Number
of Shares
Purchased
 
(b)
Average Price
Paid Per Share
 
(c)
Total Number
of Shares
Purchased as
Part of Publicly
Announced
Plans or
Programs
 
(d)
Maximum Number
(or Approximate
Dollar Value) of
Shares that May
Yet Be Purchased
Under the Plans or
Programs (1)
October
 
339

 
$
107.52

 
336

 
4,042

November
 
607

 
$
103.01

 
607

 
3,435

December
 
698

 
$
98.33

 
697

 
2,738

Total
 
1,644

 
 
 
1,640

 
 
(1) 
Represents the remaining total number of shares that can be repurchased under the Company’s stock repurchase programs.
 
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. There were approximately 4 thousand shares reacquired in transactions outside the repurchase program during the three months ended December 31, 2018.


13

Table of Contents


Item 6.  Selected Financial Data.
 
Selected Consolidated Financial Data
(in millions except for per share data)
 
2018
 
2017
 
2016
 
2015
 
2014
Summary of Operations
 
 
 
 
 
 
 
 
 
 
Revenues
 
$
4,479.5

 
$
3,750.8

 
$
3,425.2

 
$
3,300.6

 
$
2,959.8

Gross margin
 
$
1,174.7

 
$
1,048.3

 
$
1,086.4

 
$
941.3

 
$
750.5

Selling and administrative expenses
 
$
625.4

 
$
532.9

 
$
495.4

 
$
426.5

 
$
341.0

Research and development expenses
 
$
55.1

 
$
51.3

 
$
45.4

 
$
39.9

 
$
31.4

Operating income
 
$
509.0

 
$
464.0

 
$
404.2

 
$
477.5

 
$
381.1

 
 
 
 
 
 
 
 
 
 
 
Income from continuing operations
 
$
358.6

 
$
340.6

 
$
231.1

 
$
302.6

 
$
233.9

Income from discontinued operations
 
252.5

 
24.9

 
19.0

 
17.1

 
17.4

Net income
 
$
611.1

 
$
365.5

 
$
250.1

 
$
319.7

 
$
251.3

 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share:
 
 
 
 
 
 
 
 
 
 
Income from continuing operations
 
$
5.92

 
$
5.36

 
$
3.57

 
$
4.63

 
$
3.62

Income from discontinued operations
 
4.17

 
0.39

 
0.29

 
0.26

 
0.27

 
 
$
10.09

 
$
5.75

 
$
3.86

 
$
4.89

 
$
3.89

Diluted earnings per share:
 
 
 
 
 
 
 
 
 
 
Income from continuing operations
 
$
5.88

 
$
5.32

 
$
3.53

 
$
4.56

 
$
3.55

Income from discontinued operations
 
4.14

 
0.39

 
0.29

 
0.26

 
0.27

 
 
$
10.02

 
$
5.71

 
$
3.82

 
$
4.82

 
$
3.82

Financial Position
 
 

 
 

 
 

 
 

 
 

Total assets
 
$
5,249.2

 
$
5,299.8

 
$
3,965.8

 
$
3,950.9

 
$
3,754.9

Long-term debt
 
$
1,587.8

 
$
1,586.2

 
$
596.4

 
$
595.6

 
$
746.0

Other Data
 
 

 
 

 
 

 
 

 
 

Dividends paid
 
$
93.5

 
$
92.1

 
$
84.5

 
$
72.3

 
$
61.2

Dividends paid per share
 
$
1.54

 
$
1.44

 
$
1.30

 
$
1.10

 
$
0.94

The selected consolidated financial data shown above is derived from our audited consolidated financial statements. Refer to Note 1 for information regarding retrospective adjustment of prior year amounts resulting from the adoption of new accounting standards. Refer to Note 3 for information regarding recent acquisitions and their impact to financial results. Refer to Note 4 for information regarding retrospective adjustment of prior year amounts resulting from discontinued operations.

14

Table of Contents


Item 7.  Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Carlisle Companies Incorporated (“Carlisle”, the “Company”, “we”, “us” or “our”) is a diversified, global portfolio of niche brands that manufacture highly engineered products. Carlisle is committed to generating superior shareholder returns by combining a unique management style of decentralization, entrepreneurial spirit, active mergers and acquisitions, and a balanced and disciplined approach to capital deployment, all with a culture of continuous improvement as embodied in the Carlisle Operating System. 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 Consolidated Financial Statements in this Annual Report on Form 10-K.

Executive Overview
  
We focus on achieving profitable growth in our segments both organically, through new product development, product line extensions and entering new markets, as well as through acquisitions of businesses that complement our existing technologies, products and market channels. Resources are allocated among the operating segments based on senior management’s assessment of their ability to obtain leadership positions and competitive advantages in the markets they serve. We focus on obtaining profitable growth through the following strategic factors:
 
Driving above-market organic growth;
Utilizing Carlisle Operating System ("COS") consistently to drive efficiencies and operating leverage;
Building scale with synergistic acquisitions;
Continuing to invest in and develop exceptional talent; and
Deploying capital into capital expenditures, share repurchases and dividends.
 
Strong demand from customers across our end markets, price discipline, efficiencies gained from COS and execution by our dedicated employees around the globe contributed to a solid fourth-quarter and strong finish to year one of our journey toward Vision 2025. We delivered record highs in full year revenues, earnings per share, share repurchases and dividends paid.

Furthermore, we gained solid traction on the key pillars of Vision 2025, including:

Achieving 7.2% organic revenue growth, in excess of our long-term growth target of 5%
Maintaining strong price discipline across businesses, leading to positive realization for the year
Delivering cost savings of 1.5% of revenue through COS
Completing approximately $70 million of restructuring actions instituted over the last two years at Carlisle Interconnect Technologies ("CIT"), Carlisle Fluid Technologies ("CFT") and Carlisle Brake & Friction ("CBF")
Reshaping our portfolio with the sale of Carlisle FoodService Products ("CFS") for $758.0 million in early 2018 and making strategic acquisitions, including the recently announced acquisition of Petersen Aluminum Corporation ("Petersen")
Leveraging our strong cash flow and balance sheet by deploying over $550 million into record share repurchases and dividends paid, more than half-way to our stated objective of deploying $1 billion into share repurchases under Vision 2025

As we embark on year two of our journey toward Vision 2025, we will build on the achievements of year one and continue to drive towards our objectives stated above.


15

Table of Contents


Summary Financial Results
(in millions, except per share amounts)
 
2018
 
2017
 
2016
Revenues
 
$
4,479.5

 
$
3,750.8

 
$
3,425.2

Impairment charges
 
$

 
$

 
$
141.5

Operating income
 
$
509.0

 
$
464.0

 
$
404.2

Operating margin percentage
 
11.4
%
 
12.4
%
 
11.8
%
Income from continuing operations
 
$
358.6

 
$
340.6

 
$
231.1

Income from discontinued operations
 
$
252.5

 
$
24.9

 
$
19.0

Diluted earnings per share attributable to common shares:
 
 
 
 
 
 
Income from continuing operations
 
$
5.88

 
$
5.32

 
$
3.53

Income from discontinued operations
 
$
4.14

 
$
0.39

 
$
0.29

 
 
 
 
 
 
 
Items affecting comparability: (1)
 
 
 
 
 
 
Impact to operating income
 
$
32.6

 
$
47.7

 
$
23.8

Impact to income from continuing operations
 
$
21.3

 
$
(14.4
)
 
$
15.7

Impact to diluted EPS from continuing operations
 
$
0.34

 
$
(0.22
)
 
$
0.25

 
(1) 
Items affecting comparability primarily include acquisition related costs, exit and disposal costs, facility rationalization costs, litigation settlement costs, gains from divestitures and the impact of the Tax Act. The tax effect is based on the rate of the jurisdiction where the expense is deductible. Refer to Items Affecting Comparability in this MD&A for further discussion.

2018 Compared with 2017
 
Revenues increased primarily reflecting contribution from acquisition of Accella in the Carlisle Construction Materials (“CCM”), higher sales volumes and price realization. Increased revenues also reflect the adoption of Accounting Standards Codification 606, Revenue from Contracts with Customers ("ASC 606") in 2018. Refer to Notes 1 and 6, and Critical Accounting Estimates within this MD&A for further discussion regarding the impact of adoption of ASC 606.
 
The increase in operating income primarily reflected higher sales volumes and price realization, benefits from the continued execution of COS and contributions from acquisitions. This increase was partially offset by increases in raw materials, labor-related, freight and executive retirement costs.

Diluted earnings per share from continuing operations primarily benefited from a lower effective tax rate and reduced average shares outstanding, resulting from our share repurchase program, in addition to the aforementioned increases in operating income.

We generated $339.2 million in operating cash flows during 2018 and utilized cash on hand and cash provided by operations to fund acquisitions, fund capital projects and return capital to shareholders.
 
Outlook
 
Despite geopolitical and economic uncertainties, we remain optimistic that we can achieve high-single-digit revenue growth in 2019 given generally favorable market conditions across our segments and execution on the strategies and key actions we put in place over the last year.
 
2017 Compared with 2016 

Revenues increased primarily reflecting contribution from acquisitions in the CCM and CIT segments as well as higher net sales volume at CCM, associated with favorable commercial roofing market conditions, and higher net sales volume at CBF, associated with higher demand from the construction, agriculture and mining markets. These increases were partially offset by lower net sales volume at CIT, driven by challenges in the commercial aerospace market.
 
The increase in operating income and operating margin primarily reflected the non-recurrence of $141.5 million of goodwill and other intangible assets impairment charges taken at our CBF segment in 2016, higher net sales volumes in the CCM and CBF segments and savings from COS. This increase was partially offset by rising raw material costs in the CCM segment, lower sales and operating margin at CIT, approximately $36.5 million for facility rationalization and exit and disposal costs and $7.7 million of acquired inventory costs.

16

Table of Contents


Diluted earnings per share improved primarily reflecting the aforementioned increases in operating income combined with the positive net impact of the Tax Cuts and Jobs Act (the “Tax Act”).

Consolidated Results of Operations
 
Revenues

2018 Compared with 2017
(in millions)
 
2018
 
2017
 
Change
 
%
 
Acquisition
Effect
 
Price / Volume
Effect
 
Exchange
Rate Effect
Revenues
 
$
4,479.5

 
$
3,750.8

 
$
728.7

 
19.4
%
 
11.2
%
 
7.8
%
 
0.4
%
 
The increase in revenues from acquired businesses in 2018 primarily reflected the contribution of $434.1 million from the acquisition of Accella in the CCM segment. The increase in sales volume in 2018 primarily reflected favorable commercial construction demand for CCM, an increase in demand for aerospace and defense products at CIT, and higher demand for our heavy equipment products at CBF. Increased revenues also include $21.9 million from the adoption of ASC 606. Refer to Notes 1 and 6, and Critical Accounting Estimates within this MD&A for further information regarding the impact of adoption of ASC 606.
2017 Compared with 2016
(in millions)
 
2017
 
2016
 
Change
 
%
 
Acquisition
Effect
 
Price / Volume
Effect
 
Exchange
Rate Effect
Revenues
 
$
3,750.8

 
$
3,425.2

 
$
325.6

 
9.5
%
 
4.4
%
 
5.2
%
 
(0.1
)%
 
The increase in revenues from acquired businesses in 2017 primarily reflected the contribution of $104.8 million from the acquisitions of Accella, Drexel Metals and Arbo in the CCM segment. The increase in sales volume in 2017 primarily reflected favorable commercial roofing market conditions and higher demand for CBF products. These increases were partially offset by lower sales volume at CIT, primarily as a result of the aforementioned challenges in the commercial aerospace market and lower selling price at CCM.

Revenues by Geographic Area 

(in millions)
 
2018
 
2017
 
2016
United States
 
$
3,461.3

 
77
%
 
$
2,860.4

 
76
%
 
$
2,604.0

 
76
%
International:
 
 
 
 

 
 
 
 

 
 
 
 

Europe
 
443.5

 
 

 
402.5

 
 

 
378.4

 
 

Asia
 
306.5

 
 

 
267.0

 
 

 
237.3

 
 

Canada
 
112.1

 
 

 
83.3

 
 

 
74.1

 
 

Mexico and Latin America
 
72.0

 
 

 
71.1

 
 

 
72.3

 
 

Middle East and Africa
 
46.8

 
 

 
40.8

 
 

 
40.7

 
 

Other
 
37.3

 
 

 
25.7

 
 

 
18.4

 
 

Total International
 
1,018.2

 
23
%
 
890.4

 
24
%
 
821.2

 
24
%
Revenues
 
$
4,479.5

 
 

 
$
3,750.8

 
 

 
$
3,425.2

 
 

 
2018 Compared with 2017
 
Total revenues to international customers increased primarily reflecting higher foreign sales by CCM, largely reflecting acquired European and Canadian sales compared with prior year. Higher international sales also reflected increased sales to Europe and Asia from CBF.
 

17

Table of Contents


2017 Compared with 2016
 
Total revenues to customers located outside the U.S. increased primarily reflecting higher international sales by CCM, largely reflecting improving European and Canadian sales compared with prior year. Higher international sales also reflected increased sales to Europe and Asia from CBF. Partially offsetting this increase in international sales was decrease in European sales by CIT.

Gross Margin 

2018 Compared with 2017
(in millions)
 
2018
 
2017
 
Change
 
%
Gross margin
 
$
1,174.7

 
$
1,048.3

 
$
126.4

 
12.1
%
Gross margin percentage
 
26.2
%
 
27.9
%
 
 
 
 
Depreciation and amortization
 
$
96.4

 
$
85.1

 
 
 
 
 
The decrease in gross margin percentage (gross margin expressed as a percentage of revenues) in 2018 was driven by rising raw material, labor-related and freight costs and unfavorable changes in mix. Also included in gross margin in 2018 were exit and disposal costs totaling $15.5 million, primarily at CBF and CIT, attributable to our restructuring initiatives. The decrease was partially offset by lower per unit costs resulting from higher capacity utilization as a result of higher sales volume in the CIT, CCM and CBF segments and savings from COS.

2017 Compared with 2016
(in millions)
 
2017
 
2016
 
Change
 
%
Gross margin
 
$
1,048.3

 
$
1,086.4

 
$
(38.1
)
 
(3.5
)%
Gross margin percentage
 
27.9
%
 
31.7
%
 
 
 
 
Depreciation and amortization
 
$
85.1

 
$
75.5

 
 
 
 

The decrease in gross margin percentage in 2017 was primarily driven by unfavorable raw material dynamics at CCM and unfavorable changes in mix, primarily at CIT as a result of the aforementioned challenges in the commercial aerospace market. Also included in gross margin in 2017 were exit and disposal costs totaling $10.9 million primarily at CIT and CBF attributable to our exit and disposal initiatives (refer to Note 8 for further discussion) and acquired inventory costs of $7.7 million. These decreases were partially offset by lower per unit costs resulting from higher capacity utilization driven by higher net sales volume in the CCM and CBF segments and savings from COS.

Selling and Administrative Expenses 

2018 Compared with 2017
(in millions)
 
2018
 
2017
 
Change
 
%
Selling and administrative expenses
 
$
625.4

 
$
532.9

 
$
92.5

 
17.4
%
As a percentage of revenues
 
14.0
%
 
14.2
%
 
 
 
 
Depreciation and amortization
 
$
87.5

 
$
59.9

 
 
 
 

The increase in selling and administrative expense in 2018 primarily reflected acquired selling general and administrative costs from the acquisition of Accella, executive retirement expenses, higher stock-based compensation costs, higher medical claims, and charges for the facility rationalization and plant restructuring projects at CIT (refer to Note 8 for further discussion). The selling and administrative costs from the acquired businesses also included non-cash amortization of acquired customer-related intangible assets.

2017 Compared with 2016
(in millions)
 
2017
 
2016
 
Change
 
%
Selling and administrative expenses
 
$
532.9

 
$
495.4

 
$
37.5

 
7.6
%
As a percentage of revenues
 
14.2
%
 
14.5
%
 
 
 
 
Depreciation and amortization
 
$
59.9

 
$
52.3

 
 
 
 


18

Table of Contents


The increase in selling and administrative expense in 2017 primarily reflected charges for the facility rationalization and plant restructuring projects at CFT and CIT (refer to Note 8 for further discussion), and acquired selling and administrative expenses, primarily in the CCM segment. The selling and administrative costs from acquired businesses also included non-cash amortization of acquired intangible assets.

Research and Development Expenses 

2018 Compared with 2017
(in millions)
 
2018
 
2017
 
Change
 
%
Research and development expenses
 
$
55.1

 
$
51.3

 
$
3.8

 
7.4
%
As a percentage of revenues
 
1.2
%
 
1.4
%
 
 
 
 
Depreciation and amortization
 
$
1.6

 
$
1.3

 
 
 
 
 
The increase in research and development expenses in 2018 primarily reflected acquired research and development expenses from the acquisition of Accella and new product development at our CFT and CIT segments.

2017 Compared with 2016
(in millions)
 
2017
 
2016
 
Change
 
%
Research and development expenses
 
$
51.3

 
$
45.4

 
$
5.9

 
13.0
%
As a percentage of revenues
 
1.4
%
 
1.3
%
 
 
 
 
Depreciation and amortization
 
$
1.3

 
$
0.9

 
 
 
 

The increase in research and development expenses reflected increased activities related to new product development, primarily at the CIT and CCM segments. These increases were partially offset by reduced expenses at the CBF segment.

Impairment of Goodwill and Intangible Assets 
(in millions)
 
2018
 
2017
 
2016
Impairment charges
 
$

 
$

 
$
141.5

As a percentage of revenues
 
%
 
%
 
4.1
%

In 2016, CBF's revenues continued to decline due to continued weakness in off-highway equipment markets tied to lower demand for commodities and indicators of a longer period before CBF’s markets were expected to recover. Therefore, we recognized impairment charges of $141.5 million in the third quarter of 2016. Refer to Note 12 for further discussion.
 
Other Operating (Income) Expense, net
(in millions)
 
2018
 
2017
 
2016
Other operating (income) expense, net
 
$
(14.8
)
 
$
0.1

 
$
(0.1
)
Items affecting comparability (1)
 
$
(4.1
)
 
$

 
$
(0.3
)
(1) 
Items affecting comparability include (gains) losses on sale of assets and litigation settlement costs, refer to Items Affecting Comparability.

The increase in other operating income, net in 2018 primarily reflected $6.6 million of gains on sales of assets primarily at CFT, CCM and CIT, and net gains from legal settlements.
 
Operating Income

2018 Compared with 2017
(in millions)
 
2018
 
2017
 
Change
 
%
Operating income
 
$
509.0

 
$
464.0

 
$
45.0

 
9.7
%
Operating margin percentage
 
11.4
%
 
12.4
%
 
 
 
 
 

19

Table of Contents


The decrease in operating margin percentage in 2018 primarily reflected the aforementioned decrease in gross margin percentage, acquired selling, general and administrative costs from Accella, and higher stock-based and other compensation costs, partially offset by other operating income from gains on sales of assets and legal settlements. Refer to Segment Results of Operations within this MD&A for further information related to segment operating income results.

2017 Compared with 2016
(in millions)
 
2017
 
2016
 
Change
 
%
Operating income
 
$
464.0

 
$
404.2

 
$
59.8

 
14.8
%
Operating margin percentage
 
12.4
%
 
11.8
%
 
 
 
 
 
The increase in operating income and operating margin percentage primarily reflected the non-recurrence of $141.5 million of goodwill and other intangible assets impairment charges taken at our CBF segment in 2016, higher sales volumes in the CCM and CBF segments and savings from COS. This increase was partially offset by rising raw material costs in the CCM segment, lower sales and operating margin percentage at CIT, approximately $36.5 million of facility rationalization and exit and disposal costs and $7.7 million of acquired inventory costs.

Interest Expense, net

2018 Compared with 2017
(in millions)
 
2018
 
2017
 
Change
 
%
Interest expense
 
$
64.7

 
$
34.0

 
 
 
 
Interest income
 
(11.2
)
 
(0.5
)
 
 
 
 
Interest expense, net
 
$
53.5

 
$
33.5

 
$
20.0

 
59.7
%
 
The increase in interest expense, net primarily reflected the interest on the $600.0 million of notes with a stated interest rate of 3.75% and $400.0 million of notes with a stated interest rate of 3.5% that were issued in November 2017, partially offset by an increase in interest income associate with higher average cash balances during the 2018 periods (refer to Note 14 for further discussion).
 
2017 Compared with 2016
(in millions)
 
2017
 
2016
 
Change
 
%
Interest expense
 
$
34.0

 
$
31.9

 
 
 
 
Interest income
 
(0.5
)
 
(1.3
)
 
 
 
 
Interest expense, net
 
$
33.5

 
$
30.6

 
$
2.9

 
9.5
%
 
The increase in interest expense, net primarily reflected interest on the combined $1.0 billion of notes, $600 million and $400 million with stated interest rates of 3.75% and 3.5%, respectively, issued in November 2017 and interest on borrowings under our Revolving Credit Facility (the “Facility”) during the year, partially offset by the August 2016 retirement of our $150.0 million senior unsecured note that had a stated interest rate of 6.125% (refer to Note 14 for further discussion).

Other Non-operating (Income) Expense, net
(in millions)
 
2018
 
2017
 
2016
Other non-operating (income) expense, net
 
$
9.6

 
$
1.5

 
$
(5.6
)
Items affecting comparability (1)
 
$
7.7

 
$
4.2

 
$
(0.5
)
(1) 
Items affecting comparability include income tax related indemnification losses and (gains) losses on divestitures, refer to Items Affecting Comparability.

2018 Compared with 2017
 
Other non-operating (income) expense, net primarily reflected the net impact of the resolution of certain tax uncertainties related to the Accella and Finishing Brands acquisitions and release of the corresponding indemnification asset (refer to Note 3 for further discussion), and the weakening of the U.S. Dollar and related changes in foreign exchange losses.

20

Table of Contents


 2017 Compared with 2016
 
The increase in other non-operating expense, net primarily reflected the net impact of the expiration of income tax related indemnification assets, totaling $4.6 million, and losses from the divestiture of a business in the CIT segment.

Income Taxes

2018 Compared with 2017
(in millions)
 
2018
 
2017
 
Change
 
%
Provision for income taxes
 
$
87.3

 
$
88.4

 
$
(1.1
)
 
(1.2
)%
Effective tax rate
 
19.6
%
 
20.6
%
 
 
 
 
 
The effective income tax rate on continuing operations for 2018 was 19.6%. The provision for income taxes includes taxes on earnings at an annual rate of approximately 24.1% and a discrete tax benefit of $19.6 million. The net discrete tax benefit relates primarily to a reduction of unrecognized tax benefits of $7.8 million, a net incremental benefit from the Tax Act of $3.3 million and excess tax benefits related to employee stock compensation of $3.3 million.

Refer to Note 9 in additional information related to income taxes.

2017 Compared with 2016
(in millions)
 
2017
 
2016
 
Change
 
%
Provision for income taxes
 
$
88.4

 
$
148.1

 
$
(59.7
)
 
(40.3
)%
Effective tax rate
 
20.6
%
 
39.1
%
 
 
 
 

On December 22, 2017, the U.S. enacted comprehensive tax legislation commonly referred to as the Tax Act. The Tax Act included significant changes to existing tax law including, among other things, a reduction to the U.S. federal corporate income tax rate from 35% to 21% and a one-time tax on deferred foreign income ("Transition Tax"). 
 
For 2017, our results include the estimated impact of the Tax Act resulting in a provisional tax benefit of $57.7 million. This benefit is comprised of a charge of $32.5 million related to the Transition Tax and a benefit of $90.2 million from the rate reduction impacting the Company's U.S. deferred tax balances. Additionally, the effective income tax rate was impacted by a charge of $5.1 million related to a change in assertion associated with the reinvestment of foreign earnings which resulted in an effective income tax rate of 20.6%.

Income from Discontinued Operations