CARLISLE COMPANIES INCCSL

CARLISLE COMPANIES INC Commitments Disclosure

10-KFiled Feb 13, 20263 min read
Commitments and Contingencies
Leases
Lease Costs, Assets and Liabilities
The Company has operating leases primarily for manufacturing facilities, warehouses, offices and certain equipment. These leases have remaining lease terms that range from less than one to 16 years. Certain leases include one or more renewal options that may extend the lease term by an additional one to 10 years or more. The components of lease cost follow:
(in millions)202520242023
Operating lease cost
$37.6 $26.6 $21.2 
Variable lease cost
7.8 8.5 5.5 
Short-term lease cost10.8 8.1 6.9 
Total lease cost$56.2 $43.2 $33.6 
A summary of operating lease assets and liabilities included in the Consolidated Balance Sheet follows:
(in millions)
December 31,
2025		December 31,
2024
Other long-term assets$129.6 $121.6 
Other current liabilities30.2 25.7 
Other long-term liabilities105.4 100.5 
A maturity schedule of operating lease liabilities follows:
(in millions)
20262027202820292030ThereafterTotal
Lease payments$36.9 $27.7 $20.9 $18.7 $15.0 $48.9 $168.1 
Less: imputed interest(32.5)
Total lease liabilities$135.6 
Lease Term and Discount Rate
December 31,
2025		December 31,
2024
Operating leases:
Weighted-average remaining lease term (in years)7.68.4
Weighted-average discount rate5.1 %5.1 %
Supplemental Cash Flow Information
(in millions)202520242023
Operating lease liabilities - cash paid$36.0 $23.4 $19.9 
Operating lease liabilities - right-of-use assets obtained26.4 92.8 19.2 
Litigation 
Over the years, the Company has been named as a defendant, along with numerous other defendants, in lawsuits in various courts in which plaintiffs have alleged injury due to exposure to asbestos-containing friction products produced and sold predominantly by the Company’s discontinued Motion Control business between the late-1940s and the mid-1980s and roofing products produced and sold by Henry Company LLC, which the Company acquired on September 1, 2021. The Company has been subject to liabilities for indemnity and defense costs associated with these lawsuits.
The Company has recorded a liability for estimated indemnity costs associated with pending and future asbestos claims. As of December 31, 2025, the Company believes that its accrual for these costs is not material to the Company's financial position, results of operations or operating cash flows.
The Company recognizes expenses for defense costs associated with asbestos claims during the periods in which they are incurred. Refer to Note 1 for the Company’s accounting policy related to litigation defense costs.
The Company currently maintains insurance coverage and is the beneficiary of other arrangements that provide coverage with respect to asbestos-related claims and associated defense costs. The Company records the insurance coverage as a receivable in an amount it reasonably estimates is probable of recovery for pending and future asbestos-related indemnity claims. Since the Company’s insurance coverage contains various exclusions, limits of coverage and self-insured retentions and may be subject to insurance coverage disputes, the Company may incur expenses for indemnity and defense costs and recognize income from insurance recoveries in different periods. As such, recoveries are recorded only if and when it becomes probable that such costs will be covered by insurance.
The Company is also involved in various other legal actions and proceedings arising in the ordinary course of business. In the opinion of management, the ultimate outcomes of such actions and proceedings, either individually or in the aggregate, are not expected to have a material adverse effect on the Company’s financial position, results of operations, or operating cash flows.

Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 14, 2025
2023Feb 16, 2024
2022Feb 16, 2023
2021Feb 17, 2022
2020Feb 11, 2021
2019Feb 10, 2020
2018Feb 14, 2019
2017Feb 16, 2018
2016Feb 13, 2017
2015Feb 8, 2016

About Commitments Disclosures

Commitments and contingencies disclosures catalog a company's off-balance-sheet obligations and legal exposures — purchase commitments, guarantee arrangements, pending litigation, and regulatory proceedings. These items represent potential future cash outflows that may not appear as liabilities on the balance sheet until they become probable and estimable.

Key signals: litigation reserves and disclosed loss ranges quantify management's estimate of legal exposure, but unquantified "reasonably possible" losses often represent the larger risk. Watch for changes in language around pending cases — shifts from "remote" to "reasonably possible" or increases in estimated loss ranges signal deteriorating outcomes. Unconditional purchase obligations and take-or-pay contracts create fixed cost structures that reduce operational flexibility. Guarantee arrangements for subsidiaries or joint ventures can create cascading obligations. Compare the total commitment schedule against projected free cash flow to assess whether the company can meet its obligations without additional financing.

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