Washington,D.C FORM10-K. Commissionfilenumber1-9278

Transcription

1 QuickLinks--Clickheretorapidlynavigatethroughthisdocument (MarkOne) SECURITIESANDEXCHANGECOMMISSION Washington,D.C FORM10-K ý ANNUALREPORTPURSUANTTOSECTION13or15(d)OFTHESECURITIESEXCHANGEACTOF1934 FORTHEFISCALYEARENDEDDECEMBER31,2015 OR o TRANSITIONREPORTPURSUANTTOSECTION13OR15(d)OFTHESECURITIESEXCHANGEACT OF1934. Commissionfilenumber CARLISLECOMPANIESINCORPORATED (Exactnameofregistrantasspecifiedinitscharter) Delaware (Stateorotherjurisdictionof incorporationororganization) (I.R.S.Employer IdentificationNo.) 11605NorthCommunityHouseRoad,Suite600,Charlotte, NorthCarolina28277 (Addressofprincipalexecutiveoffice,includingzipcode) (704) (TelephoneNumber) SecuritiesregisteredpursuanttoSection12(b)oftheAct: Titleofeachclass Nameofeachexchangeonwhichregistered Commonstock,$1parvalue NewYorkStockExchange PreferredStockPurchaseRights NewYorkStockExchange Indicatebycheckmarkiftheregistrantisawell-knownseasonedissuer,asdefinedinRule405oftheSecuritiesAct.YesýNoo IndicatebycheckmarkiftheregistrantisnotrequiredtofilereportspursuanttoSection13orSection15(d)oftheAct.YesoNoý Indicatebycheckmarkwhethertheregistrant(1)hasfiledallreportsrequiredtobefiledbySection13or15(d)oftheSecuritiesExchangeActof1934 duringthepreceding12months(orforsuchshorterperiodthattheregistrantwasrequiredtofilesuchreports),and(2)hasbeensubjecttosuchfilingrequirements forthepast90days.yesýnoo IndicatebycheckmarkwhethertheregistranthassubmittedelectronicallyandpostedonitscorporateWebsite,ifany,everyInteractiveDataFilerequiredto besubmittedandpostedpursuanttorule405ofregulations-t( ofthischapter)duringthepreceding12months(orforsuchshorterperiodthatthe registrantwasrequiredtosubmitandpostsuchfiles).yesýnoo IndicatebycheckmarkifdisclosureofdelinquentfilerspursuanttoItem405ofRegulationS-K( ofthischapter)isnotcontainedherein,andwill notbecontained,tothebestofregistrant'sknowledge,indefinitiveproxyorinformationstatementsincorporatedbyreferenceinpartiiiofthisform10-korany amendmenttothisform10-k.ý Indicatebycheckmarkwhethertheregistrantisalargeacceleratedfiler,anacceleratedfiler,anon-acceleratedfiler,orasmallerreportingcompany.Seethe definitionsof"largeacceleratedfiler,""acceleratedfiler,"and"smallerreportingcompany"inrule12b-2oftheexchangeact. Largeacceleratedfilerý Acceleratedfilero Non-acceleratedfilero (Donotcheckifa smallerreportingcompany) Smallerreportingcompanyo Indicatebycheckmarkwhethertheregistrantisashellcompany(asdefinedinRule12b-2oftheExchangeAct).YesoNoý Theaggregatemarketvalueofthesharesofcommonstockoftheregistrantheldbynon-affiliateswasapproximately$6.2billionbasedupontheclosing priceofthecommonstockonthenewyorkstockexchangeonjune30,2015. AsofFebruary4,2016,64,194,432sharesofcommonstockoftheregistrantwereoutstanding;

2 DOCUMENTSINCORPORATEDBYREFERENCE PortionsofthedefinitiveProxyStatementfortheAnnualMeetingofShareholderstobeheldonMay18,2016areincorporatedbyreferenceinPartIII.

3 PartI Item1.Business. Overview CarlisleCompaniesIncorporated("Carlisle",the"Company","we","us"or"our")wasincorporatedin1986inDelawareasaholdingcompanyforCarlisle Corporation,whoseoperationsbeganin1917,anditswholly-ownedsubsidiaries.Carlisleisadiversifiedmanufacturingcompanyconsistingoffivesegments whichmanufactureanddistributeabroadrangeofproducts.additionalinformationiscontainedinitems7and8. TheCompany'sexecutiveofficesarelocatedat11605NorthCommunityHouseRoad,Suite600,Charlotte,NorthCarolina.TheCompany'smaintelephone numberis(704) thecompany'sinternetwebsiteaddressiswww.carlisle.com.throughthisinternetwebsite(foundinthe"investorrelations"link), thecompanymakesavailable,freeofcharge,itsannualreportonform10-k,quarterlyreportsonform10-qandcurrentreportsonform8-kandall amendmentstothosereports,assoonasreasonablypracticableafterthesereportsareelectronicallyfiledwithorfurnishedtothesecuritiesandexchange Commission. ManagementPhilosophy/BusinessStrategy TheCompanystrivestobethemarketleaderofhighly-engineeredproductsinthevariousnichemarketsitserves.TheCompanyisdedicatedtoachieving low-costpositionsandprovidingserviceexcellencebasedon,amongotherthings,superiorquality,on-timedelivery,andshortcycletimes. Thepresidentsofthevariousoperatingcompaniesaregivenconsiderableautonomyandhaveasignificantlevelofindependentresponsibilityfortheir businessesandtheirperformance.thecompanybelievesthatthisstructureencouragesentrepreneurialactionandenhancesresponsivedecisionmakingthereby enablingeachoperationtobetterserveitscustomersandreactquicklytoitscustomers'needs. TheCompany'sexecutivemanagementroleisto(i)providegeneralmanagementoversightandcounsel,(ii)managetheCompany'sportfolioofbusinesses includingidentifyingacquisitioncandidatesandassistinginacquiringcandidatesidentifiedbytheoperatingcompanies,aswellasidentifyingbusinessesfor divestitureinanefforttooptimizetheportfolio,(iii)allocateandmanagecapital,(iv)evaluateandmotivateoperatingmanagementpersonnel,and(v)provide selectedotherservices. TheCompanyutilizesitsCarlisleOperatingSystem("COS"),amanufacturingstructureandstrategydeploymentsystembasedonleanenterpriseandsix sigmaprinciples,todriveoperationalimprovements.cosisacontinuousimprovementprocessthatdefinesthewaythecompanydoesbusiness.wasteis eliminatedandefficienciesimprovedenterprisewide,allowingthecompanytoincreaseoverallprofitability.improvementsarenotlimitedtoproductionareas,as COSisalsodrivingimprovementsinnewproductinnovation,engineering,supplychainmanagement,warranty,andproductrationalization.COShascreateda cultureofcontinuousimprovementacrossallaspectsofthecompany'sbusinessoperations. TheCompanyhasalong-standingacquisitionstrategy.Traditionally,theCompanyhasfocusedonacquiringnewbusinessesthatcanbeaddedtoexisting operations,or"bolt-ons."inaddition,thecompanyconsidersacquiringnewbusinessesthatcanoperateindependentlyfromothercarlislecompanies.factors consideredbythecompanyinmakinganacquisitionincludeconsolidationopportunities,technology,customerdispersion,operatingcapabilities,andgrowth potential.thecompanyhasalsopursuedthesaleofoperatingdivisionswhenitisdeterminedtheynolongerfitwithinthecompany'slong-termgoalsorstrategy. FormoredetailsregardingtheacquisitionanddivestitureoftheCompany'sbusinessesduringthepastthreeyears,see"PartII Item7.Management's DiscussionandAnalysisofFinancialCondition 2

4 andresultsofoperations Acquisitions"andNotes3and4totheConsolidatedFinancialStatementsinItem8. InformationontheCompany'srevenues,earnings,andidentifiableassetsforcontinuingoperationsbyindustrysegmentforthelastthreefiscalyearsisas follows: FinancialInformationaboutIndustrySegments (inmillions) NetSalestoUnaffiliatedCustomers CarlisleConstructionMaterials $ 2,002.6 $ 1,935.4 $ 1,776.5 CarlisleInterconnectTechnologies CarlisleFluidTechnologies CarlisleBrake&Friction CarlisleFoodServiceProducts Total $ 3,543.2 $ 3,204.0 $ 2,943.0 EarningsBeforeInterestandIncomeTaxes CarlisleConstructionMaterials $ $ $ CarlisleInterconnectTechnologies CarlisleFluidTechnologies 20.8 CarlisleBrake&Friction CarlisleFoodServiceProducts Corporate(1) (56.2) (49.1) (47.1) Total $ $ $ IdentifiableAssets CarlisleConstructionMaterials $ $ $ CarlisleInterconnectTechnologies 1, , ,017.5 CarlisleFluidTechnologies CarlisleBrake&Friction CarlisleFoodServiceProducts Corporate(2) Total $ 3,954.1 $ 3,758.7 $ 3,492.7 (1) Includesgeneralcorporateexpenses (2) Consistsprimarilyofcashandcashequivalentsandotherinvestedassets,andincludesassetsofdiscontinuedoperationsnotclassifiedas heldforsale DescriptionofBusinessesbySegment CarlisleConstructionMaterials("CCM"orthe"ConstructionMaterialssegment") TheConstructionMaterialssegmentmanufacturesandsellsrubber("EPDM"),thermoplasticpolyolefin("TPO"),andpolyvinylchloridemembrane("PVC") roofingsystems.inaddition,ccmmarketsandsellsaccessoriespurchasedfromthirdpartysuppliers.ccmalsomanufacturesanddistributesenergy-efficient rigidfoaminsulationpanelsforsubstantiallyallroofingapplications.roofingmaterialsandinsulationaresoldtogetherinwarrantedsystemsorseparatelyinnonwarrantedsystemstothenewconstruction,re-roofingandmaintenance,generalconstruction,andindustrialmarkets.throughitscoatingsandwaterproofing operation,thissegmentmanufacturesandsellsliquidandspray-appliedwaterproofingmembranes,vaporandairbarriers,andhvacductsealantsand 3

5 hardwareforthecommercialandresidentialconstructionmarkets.themajorityofccm'sproductsaresoldthroughanetworkofauthorizedsalesrepresentatives anddistributors. CCMoperatesmanufacturingfacilitieslocatedthroughouttheUnitedStates,itsprimarymarket,andinGermany,theNetherlands,andRomania.Insulation facilitiesarelocatedinmontgomery,newyork,franklinpark,illinois,lakecity,florida,terrell,texas,smithfield,pennsylvania,tooele,utah,andpuyallup, Washington.EPDMmanufacturingoperationsarelocatedinCarlisle,Pennsylvania,Greenville,Illinois,Kampen,Netherlands,andinHamburgand Waltershausen,Germany.TPOfacilitiesarelocatedinSenatobia,Mississippi,Tooele,Utah,andCarlisle,Pennsylvania.Coatingsandwaterproofing manufacturingoperationsincludefourproductionfacilitiesinnorthamerica.blockmoldedexpandedpolystyrene,oreps,operationsincludenineproductionand fabricationfacilitiesacrosstheunitedstates.ccmcompletedconstructionofapvcmanufacturingplantingreenville,illinois,in2013andbeganproductionin thefirstquarterof2014. RawmaterialsforthissegmentincludeEPDMpolymer,TPOpolymer,carbonblack,processingoils,solvents,asphalt,methylenediphenyldiisocyanate, polyol,polyesterfabric,blackfacerpaper,orientedstrandboard,clay,andvariouspackagingmaterials.criticalrawmaterialsgenerallyhaveatleasttwovendor sourcestobetterassureadequatesupply.forrawmaterialsthataresinglesourced,thevendortypicallyhasmultipleprocessingfacilities. SalesandearningsforCCMtendtobesomewhathigherinthesecondandthirdquartersduetoincreasedconstructionactivityduringthoseperiods. Theworkingcapitalpracticesforthissegmentinclude: (i) (ii) (iii) Standardaccountsreceivablepaymenttermsof45daysto90days. Standardaccountspayablepaymenttermsof30daysto60days. Inventoriesaremaintainedinsufficientquantitiestomeetforecasteddemand. CCMservesalargeanddiversecustomerbase;however,in2015twodistributorcustomersrepresentedapproximately34%ofthissegment'snetsales,oneof which,beaconroofingsupply,inc.,represented10%ofthecompany'sconsolidatednetsales.thelossofeitherofthesecustomerscouldhaveamaterialadverse effectonthissegment'sandthecompany'sresultsofoperationsandoperatingcashflowsintheaffectedreportingperiod,however,weconsideritunlikelythat suchaneventwouldhaveamaterialadverseeffectonourfinancialposition. Thissegmentfacescompetitionfromnumerouscompetitorsthatproduceroofing,insulation,andwaterproofingproductsforcommercialandresidential applications.thelevelofcompetitionwithinthismarketvariesbyproductline.asoneoffourmajormanufacturersinthenichesingle-plyindustry,ccm competesthroughpricing,innovativeproducts,long-termwarranties,andcustomerservice.ccmoffersseparately-pricedextendedwarrantycontractsonits installedroofingsystems,rangingfromfiveyearstothirtyyearsand,subjecttocertainexclusions,coveringleaksintheroofingsystemattributabletoaproblem withtheparticularproductortheinstallationoftheproduct.inordertoqualifyforthewarranty,thebuildingownermusthavetheroofingsysteminstalledbyan independentauthorizedroofingcontractortrainedbyccmtoinstallitsroofingsystems. CarlisleInterconnectTechnologies("CIT"orthe"InterconnectTechnologiessegment") TheInterconnectTechnologiessegmentdesignsandmanufactureshigh-performancewire,cable,connectors,contacts,andcableassembliesforthetransferof poweranddataprimarilyfortheaerospace,medical,defenseelectronics,testandmeasurementequipment,andselectindustrialmarkets.thissegmentoperates manufacturingfacilitiesintheunitedstates,switzerland,china,mexico,andtheunitedkingdom,withtheunitedstates,europe,andchinabeingtheprimary targetmarketsforsales.salesaremadebydirectsalespersonnelandindependentsalesrepresentatives. 4

6 Rawmaterialsforthissegmentincludegold,copperconductorsthatareplatedwithtin,nickel,orsilver,polyimidetapes,polytetrafluoroethylene("PTFE") tapes,ptfefinepowderresin,thermoplasticresins,stainlesssteel,berylliumcopperrod,machinedmetals,plasticparts,andvariousmarkingandidentification materials.keyrawmaterialsaretypicallysourcedworldwideandhaveatleasttwovendorsourcestobetterassureadequatesupply. SalesandearningsoftheInterconnectTechnologiessegmentaregenerallynotseasonalinnature. Theworkingcapitalpracticesforthissegmentinclude: (i) (ii) (iii) Standardaccountsreceivablepaymenttermsof30daysto60days. Standardaccountspayablepaymenttermsof30daysto60days. Inventoriesaremaintainedinsufficientquantitiestomeetforecasteddemand.ThemajorityofCIT'ssalesarefrommade-to-orderproducts, resultingininventoriespurchasedondemand. CITservesalargeanddiversecustomerbase;however,in2015onecustomerrepresented22%ofthissegment'snetsales,butdidnotrepresent10%ofthe Company'sconsolidatednetsales.Thelossofthiscustomercouldhaveamaterialadverseeffectonthissegment'snetsalesandcashflows. TheInterconnectTechnologiessegmentfacescompetitionfromnumerouscompetitorswithineachofthemarketsthatitserves.Whileproductspecifications, certifications,andlifecyclesvarybymarket,theinterconnecttechnologiessegmentprimarilypositionsitselftogaindesignspecificationforcustomerplatforms orproductswithlonglifecyclesandhighbarrierstoentrysuchasintheaerospaceandmedicalmarketswhichgenerallyhavehighstandardsforproduct certificationasdeemedbythefederalaviationadministration(faa)andfoodanddrugadministration(fda),respectively.theinterconnecttechnologies segmentcompetesprimarilyonthebasisofitsproductperformanceanditsabilitytomeetitscustomers'highlyspecificdesign,engineering,anddeliveryneedson atimelybasis.relativetomanyofitscompetitorsthatarelargemulti-nationalcorporations,theinterconnecttechnologiessegmentretainstheabilitytoremain agileandrespondquicklytocustomerneedsandmarketopportunities.pricingisasecondarybuyingcriterionformostcustomers. CarlisleFluidTechnologies("CFT"orthe"FluidTechnologiessegment") OnApril1,2015,theCompanyacquired100%oftheFinishingBrandsbusinessfromGracoInc.("Graco").TheCompanyhasreportedtheresultsofthe acquiredbusinessasanewreportingsegmentnamedcarlislefluidtechnologies.thefluidtechnologiessegmentdesigns,manufactures,andsellshighlyengineeredliquidfinishingequipmentandsystemcomponentsprimarilyintheautomotive,automotiverefinishing,aerospace,agriculture,construction,marine, andrailindustries.thebusinessoperatesmanufacturingandassemblyfacilitiesintheunitedstates,mexico,brazil,theunitedkingdom,germany,china,and Japan,withnearly60%ofitssalesoutsidetheUnitedStates.TheFluidTechnologiessegmentmanufacturesandsellsproductswhicharesoldunderthebrand namesofbinks,devilbiss,ransburg,andbgk.themajorityofsalesintotheseindustriesaremadethroughaworldwidenetworkofdistributors,national accounts,integrators,andsomedirecttoend-usersales.thesebusinessrelationshipsaremanagedprimarilythroughdirectsalespersonnelworldwide. Keyrawmaterialsforthissegmentincludecarbonandvariousgradesofstainlesssteel,brass,aluminum,copper,machinedmetals,carbide,machinedplastic parts,andpolytetrafluoroethylene(ptfe).keyrawmaterialsaretypicallysourcedworldwideandhaveatleasttwovendorsourcestobetterassureadequate supply. SalesandearningsoftheFluidTechnologiessegmentaregenerallynotseasonalinnature. 5

7 Theworkingcapitalpracticesforthissegmentinclude: (i) (ii) (iii) Standardaccountsreceivablepaymenttermsof30daysto90days. Standardaccountspayablepaymenttermsof30daysto60days. Inventoriesaremaintainedinsufficientquantitiestomeetforecasteddemand. CFTservesalargeanddiversecustomerbase.Thelossofanysinglecustomerwouldnothaveamaterialadverseeffectonthissegment'snetsalesandcash flows. TheFluidTechnologiessegmentcompetesagainstbothregionalandinternationalmanufacturers.Majorcompetitivefactorsincludeinnovativedesigns,the abilitytoprovidecustomerswithlowercostofownershipthanitscompetitors,dependableperformance,andhighqualityatacompetitiveprice.fluid Technologies'abilitytospray,mix,ordeliverawiderangeofcoatings,applieduniformlyinexactincrements,iscriticaltotheoverallappearanceandfunctionality ofthefinishedproduct.thesegment'sinstalledbaseofglobalcustomersissupportedbyaworldwidedistributionnetworkwiththeabilitytodelivercriticalspare partsandotherservices.brandswhicharewellrecognizedandrespectedinternationally,combinedwithadiversebaseofcustomers,applications,andindustries served,positionsthefluidtechnologiessegmenttocontinuedesigningpatented,innovativeequipmentandsolutionsforcustomersacrosstheglobe. CarlisleBrake&Friction("CBF"orthe"Brake&Frictionsegment") TheBrake&Frictionsegmentconsistsofoff-highwaybrakingsystemsandfrictionproductsforoff-highway,on-highway,aircraft,andotherindustrial applications.cbfalsoincludestheperformanceracinggroupwhichmarketsandsellshigh-performancemotorsportbrakingproducts.thebrake&friction segmentmanufacturesandsellsproductswhicharesoldunderseveralbrandnames,suchashawk,wellman,andvelvetouch.cbf'sproductsaresoldby directsalespersonneltooriginalequipmentmanufacturers("oems"),massmerchandisers,andvariouswholesaleandindustrialdistributorsaroundtheworld, includingnorthamerica,europe,asia,southamerica,andafrica.keymarketsservedincludeconstruction,agriculture,mining,aircraft,heavytruck,and performanceracing.manufacturingfacilitiesarelocatedintheunitedstates,theunitedkingdom,italy,china,japan,andindia,wherewehaveestablisheda lightmanufacturingpresence. Thebrakemanufacturingoperationsrequiretheuseofvariousmetalproductssuchascastings,pistons,springs,andbearings.Withrespecttofriction products,therawmaterialsusedarefiberglass,phenolicresin,metallicchips,copperandironpowders,steel,custom-fabricatedcellulosesheet,andvariousother organicmaterials.rawmaterialsaresourcedworldwidetobetterassureadequatesupply,andcriticalrawmaterialsgenerallyhaveatleasttwovendorsources. Earningstendtobehigherinthefirsthalfoftheyearduetoproductmix. Theworkingcapitalpracticesforthissegmentinclude: (i) (ii) (iii) Standardaccountsreceivablepaymenttermsof30daysto60days. Standardaccountspayablepaymenttermsof30daysto90days. Inventoriesaremaintainedinsufficientquantitiestomeetforecasteddemand. CBFservesalargeanddiversecustomerbase;however,in2015onecustomerrepresentedapproximately18%ofthissegment'snetsales,butdidnot represent10%ofthecompany'sconsolidatednetsales.thelossofthiscustomercouldhaveamaterialadverseeffectonthissegment'snetsalesandcashflows. Thissegmentcompetesgloballyagainstregionalandinternationalmanufacturers.Fewcompetitorsparticipateinallservedmarkets.Amajorityparticipatein onlyafewofcbf'sservedmarketsona 6

8 regionalorglobalbasis.marketsservedarecompetitiveandthemajorcompetitivefactorsincludeproductperformance,quality,productavailability,andprice. Therelativeimportanceofthesecompetitivefactorsvariesbymarketsegmentandchannel. CarlisleFoodServiceProducts("CFSP"orthe"FoodServiceProductssegment") TheFoodServiceProductssegmentisaleadingmanufacturer,distributor,andsellerofcommercialfoodserviceandjanitorialproductswiththreemainfocus markets.cfspisaleadingproviderof(i)tabletopdiningsupplies,tablecoverings,anddisplayservingware,(ii)foodpreparation,storage&handlingand transportsuppliesandtools,and(iii)cleaning&sanitationtoolsandwastehandlingtorestaurants,hotels,hospitals,nursinghomes,business&industrywork sites,education,andgovernmentfacilities.cfsp'sdinexbrandbusinessisaleadingproviderofhealthcaremealdeliverysystemsforin-roomandmobiledining foracutecarehospitalpatientsandseniorassistedlivingresidents.cfsp'ssanitarymaintenanceproductsgroupistheleadingproviderofspartabrandcleaning brushes,floorcaresupplies,andwastehandlingforjanitorialprofessionalsmanagingcommercialbuilding,industrial,andinstitutionalfacilitiescleaningand maintenance. CFSPoperatesmanufacturingfacilitiesintheUnitedStatesandMexico.SalesareprimarilyinNorthAmerica.CFSP'sproductlineisdistributedfromthree primarydistributioncenterslocatedincharlotte,northcarolina,oklahomacity,oklahoma,andbatavia,illinois,towholesalers,distributors,anddealers.these distributoranddealercustomers,inturn,selltorestaurant,hotel,andonsitefoodserviceoperatorsandsanitarymaintenanceprofessionals.distributorsanddealer businessrelationshipsaremanagedthroughbothdirectsalespersonnelandsubcontractedmanufacturerrepresentatives. RawmaterialsusedbytheFoodServiceProductssegmentincludepolymerresins,stainlesssteel,andaluminum.Keyrawmaterialsaresourcednationally fromrecognizedsuppliersofthesematerials. SalesintheFoodServiceProductssegmenttendtobemarginallystrongerinthesecondandthirdquarters. Theworkingcapitalpracticesforthissegmentinclude: (i) (ii) (iii) Standardaccountsreceivablepaymenttermsof30daysto60days. Standardaccountspayablepaymenttermsof30daysto90days. Inventoriesaremaintainedinsufficientquantitiestomeetforecasteddemand. TheFoodServiceProductssegmentservesalargeanddiversecustomerbase;however,in2015threedistributorcustomerstogetherrepresented28%ofthis segment'snetsales,noneofwhichrepresented10%ofthecompany'sconsolidatednetsales.thelossofoneofthesecustomerscouldhaveamaterialadverse effectonthissegment'snetsalesandcashflows. TheFoodServiceProductssegmentisengagedinmarketsthataregenerallyhighlycompetitive,andcompetesequallyonprice,service,andproduct performance. PrincipalProducts TheCompany'sproductsarediscussedaboveandinNote2totheConsolidatedFinancialStatementsinItem8. IntellectualProperty TheCompanyownsorholdstherighttouseavarietyofpatents,trademarks,licenses,inventions,tradesecrets,andotherintellectualpropertyrights.The Companyhasadoptedavarietyofmeasures 7

9 andprogramstoensurethecontinuedvalidityandenforceabilityofitsvariousintellectualpropertyrights. Backlog BacklogofordersgenerallyisnotasignificantfactorinmostoftheCompany'sbusinesses,asmostoftheCompany'sproductshaverelativelyshortorder-todeliveryperiods.Backlogoforderswas$389.6millionatDecember31,2015and$376.3millionatDecember31,2014;however,notalloftheseordersarefirm innature. GovernmentContracts AtDecember31,2015,theCompanyhadnomaterialcontractsthatweresubjecttorenegotiationofprofitsorterminationattheelectionoftheU.S. government. ResearchandDevelopment Researchanddevelopmentactivitiesincludethedevelopmentofnewproductlines,themodificationofexistingproductlinestocomplywithregulatory changes,andtheresearchofcostefficienciesthroughrawmaterialsubstitutionandprocessimprovements.thecompany'sresearchanddevelopmentexpenses were$42.8millionin2015comparedto$33.8millionin2014and$29.3millionin2013. EnvironmentalMatters See"PartII Item7.Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations Environmental"andNote11tothe ConsolidatedFinancialStatementsinItem8forinformationregardingenvironmentalmatters. Employees TheCompanyhadapproximately12,000employees,noneofwhomwerecoveredbyacollectivebargainingagreement,atDecember31,2015.TheCompany believesthestateofitsrelationshipwithitsemployeesisgenerallygood. International ForforeignnetsalesandanallocationoftheCompany'sassets,seeNote2totheConsolidatedFinancialStatementsinItem8. NYSEAffirmation OnMay13,2015,DavidA.Roberts,theCompany'sChiefExecutiveOfficer,submittedtotheNewYorkStockExchange(the"NYSE")theAnnualCEO CertificationandcertifiedthereinthathewasnotawareofanyviolationbytheCompanyoftheNYSE'sCorporateGovernancelistingstandards. 8

10 Item1A.RiskFactors. TheCompany'sbusiness,financialcondition,resultsofoperations,andcashflowscanbeaffectedbyanumberoffactorsincludingbutnotlimitedtothoseset forthbelow,thosesetforthinour"forwardlookingstatements"disclosureinitem7,andthosesetforthelsewhereinthisannualreportonform10-k,anyone ofwhichcouldcausethecompany'sactualresultstovarymateriallyfromrecentresultsorfromanticipatedfutureresults. Several of the market segments that the Company serves are cyclical and sensitive to domestic and global economic conditions. SeveralofthemarketsegmentsinwhichtheCompanysellsitsproductsare,tovaryingdegrees,cyclical,andmayexperienceperiodicdownturnsindemand. Forexample,theBrake&Frictionsegmentissusceptibletodownturnsintheconstruction,agriculture,andminingindustries,theInterconnectTechnologies segmentissusceptibletodownturnsinthecommercialairlineindustry,andtheconstructionmaterialssegmentissusceptibletodownturnsinthecommercial constructionindustry.inaddition,boththeinterconnecttechnologiessegmentandthebrake&frictionsegmentmaybenegativelyimpactedbyreductionsin militaryspending. Currentuncertaintyregardingglobaleconomicconditionsmayhaveanadverseeffectonthebusinesses,resultsofoperations,andfinancialconditionofthe Companyanditscustomers,distributors,andsuppliers.Amongtheeconomicfactorswhichmayaffectperformanceare:manufacturingactivity,commercialand residentialconstruction,difficultiesenteringnewmarkets,andgeneraleconomicconditionssuchasinflation,deflation,interestrates,andcreditavailability.these effectsmay,amongotherthings,negativelyimpactthelevelofpurchases,capitalexpenditures,andcreditworthinessofthecompany'scustomers,distributors,and suppliers,andtherefore,thecompany'sresultsofoperations,margins,andorders.thecompanycannotpredictif,when,orhowmuchworldwideeconomic conditionswillimprove.theseconditionsarehighlyunpredictableandbeyondthecompany'scontrol.iftheseconditionsdeteriorate,however,thecompany's business,financialcondition,resultsofoperations,andcashflowscouldbemateriallyadverselyaffected. The Company's growth is partially dependent on the acquisition and successful integration of other businesses. TheCompanyhasalongstandingacquisitionprogramandexpectstocontinueacquiringbusinesses.Typically,theCompanyconsidersacquiringbolt-ons. Acquisitionsofthistypeinvolvenumerousrisks,whichmayincludepotentialdifficultiesinintegratingthebusinessintoexistingoperations;afailuretorealize expectedgrowth,synergies,andefficiencies;increasingdependencyonthemarketsservedbycertainbusinesses;increaseddebttofinancetheacquisitionsorthe inabilitytoobtainadequatefinancingonreasonableterms. TheCompanyalsoconsiderstheacquisitionofbusinesseswhichmayoperateindependentofexistingoperations,andcouldincreasethepossibilityof divertingmanagement'sattentionfromitsexistingoperations. OnApril1,2015,theCompanyacquired100%oftheFinishingBrandsbusinessfromGracoInc.("Graco").TheCompanyhasreportedtheresultsofthe acquiredbusinessasanewreportingsegmentnamedcarlislefluidtechnologies.thesuccessfulintegrationofthebusinessisdependentupontherealizationof efficienciesandsynergies.iftheseintegrationinitiativesdonotoccur,theremaybeanegativeeffectonthecompany'sbusiness,financialcondition,resultsof operations,andcashflows. IftheCompanyisunabletosuccessfullyintegrateanyacquiredbusinessorrealizegrowth,synergies,andefficienciesthatwereexpectedwhendetermininga purchaseprice,goodwillandotherintangibleassetsacquiredmaybeconsideredimpaired,resultinginanadverseimpactonthe 9

11 Company'sresultsofoperations.See"PartII Item7.Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations Critical AccountingPolicies"foradiscussionoffactorsconsideredinthesubsequentvaluationoftheCompany'sacquiredgoodwillandintangibleassets. The Company has significant concentrations in the commercial construction market. FortheyearendedDecember31,2015,approximately56%oftheCompany'srevenues,and63%ofitsEBIT(excludingCorporateexpenses)weregenerated bytheconstructionmaterialssegment.constructionspendingisaffectedbyeconomicconditions,changesininterestrates,demographicandpopulationshifts, andchangesinconstructionspendingbyfederal,state,andlocalgovernments.adeclineinthecommercialconstructionmarket,couldadverselyaffectthe Company'sbusiness,financialcondition,resultsofoperations,andcashflows.Additionally,adverseweatherconditionssuchasheavyorsustainedrainfall,cold weather,andsnowcanlimitconstructionactivityandreducedemandforroofingmaterials.weatherconditionscanalsobeapositivefactor,asdemandforroofing materialsmayriseafterharshweatherconditionsduetotheneedforreplacementmaterials. TheConstructionMaterialssegmentcompetesthroughpricing,amongotherfactors.Increasedcompetitioninthissegmenthasandcouldcontinuetoplace negativepressureonoperatingresultsinfutureperiods. The Company is subject to risks arising from international economic, political, legal, and business factors. TheCompanyhasincreased,andanticipatesthatitwillcontinuetoincrease,itspresenceinglobalmarkets.Approximately25%oftheCompany'srevenuesin 2015weregeneratedoutsidetheUnitedStates.TheCompanyexpectsthatthispercentagewillgrowastheCompanycontinuestoexpanditsinternationalsales efforts.inaddition,tocompeteglobally,allofthecompany'ssegmentsoperatebusinessoutsidetheunitedstates. TheCompany'srelianceonnon-U.S.revenuesandnon-U.S.manufacturingbasesexposesitsbusiness,financialcondition,operatingresults,andcashflowsto anumberofrisks,includingpriceandcurrencycontrols;governmentembargoesorforeigntraderestrictions;extraterritorialeffectsofu.s.lawssuchasthe ForeignCorruptPracticesAct;expropriationofassets;war,civiluprisings,actsofterror,andriots;politicalinstability;nationalizationofprivateenterprises; hyperinflationaryconditions;thenecessityofobtaininggovernmentalapprovalfornewandcontinuingproductsandoperations,currencyconversion,or repatriationofassets;legalsystemsofdecrees,laws,taxes,regulations,interpretations,andcourtdecisionsthatarenotalwaysfullydevelopedandthatmaybe retroactivelyorarbitrarilyapplied;costandavailabilityofinternationalshippingchannels;andcustomerloyaltytolocalcompanies. 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. TheCompanyoperatesinseveralspecialtynichemarketsinwhichalargeportionofthesegment'srevenuesareattributabletoafewlargecustomers.See "Item1.Business Overview DescriptionofBusinessesbySegment"fordiscussionofcustomerconcentrationsbysegment.Asignificantreductioninpurchases byoneormoreofthesecustomerscouldhaveamaterialadverseeffectonthebusiness,financialcondition,resultsofoperations,orcashflowsofoneormoreof thecompany'ssegments. SomeoftheCompany'skeycustomersenjoysignificantpurchasingpowerthatmaybeusedtoexertpricingpressureontheCompany.Additionally,asmany ofthecompany'sbusinessesarepartofalongsupplychaintotheultimateconsumer,thecompany'sbusiness,financialcondition,resultsofoperations,orcash flowscouldbeadverselyaffectedifoneormorekeycustomerselectstoin-sourcetheproductionofaproductorproductsthatthecompanycurrentlyprovides. 10

12 Raw Material costs are a significant component of the Company's cost structure and are subject to volatility. TheCompanyutilizespetroleum-basedproducts,steel,andothercommoditiesinitsmanufacturingprocesses.Rawmaterials,includinginboundfreight, accountedforapproximately60%ofthecompany'scostofgoodssoldin2015.significantincreasesinthepriceofthesematerialsmaynotberecoveredthrough sellingpriceincreasesandcouldadverselyaffectthecompany'sbusiness,financialcondition,resultsofoperations,andcashflows.thecompanyalsorelieson globalsourcesofrawmaterials,whichcouldbeadverselyimpactedbyunfavorableshippingortradearrangementsandglobaleconomicconditions. If the Company or its business partners are unable to adequately protect the Company's information assets from cyber-based attacks or other security incidents, the Company's operations could be disrupted. TheCompanyisincreasinglydependentoninformationtechnology,includingtheinternet,forthestorage,processing,andtransmissionofitselectronic, business-related,informationassets.thecompanyleveragesitsinternalinformationtechnologyinfrastructures,andthoseofitsbusinesspartners,toenable, sustain,andsupportitsglobalbusinessinterests.intheeventthatthecompanyoritsbusinesspartnersareunabletoprevent,detect,andremediatecyber-based attacksorothersecurityincidentsinatimelymanner,thecompany'soperationscouldbedisruptedorthecompanymayincurfinancialorreputationallosses arisingfromthetheft,alteration,misuse,unauthorizeddisclosure,ordestructionofitsinformationassets. The Company may be impacted by new regulations related to conflict minerals. InAugust2012,asmandatedbytheDodd-FrankWallStreetReformandConsumerProtectionActof2010,theSECadoptednewdisclosureregulationsfor publiccompaniesthatmanufactureproductsthatcontaincertainmineralsandtheirderivativesknownasconflictminerals,ifthesemineralsarenecessarytothe functionalityorproductionofthecompany'sproducts.whiletheregulationsdonotrequirethatacompanydiscontinuetheuseofconflictminerals,thecompany neverthelessmaybeimpactedbytheregulations.ifoneormoreofthecompany'skeycustomersdeclaresthatitwillbecome"conflict-free"thecompanymaybe forcedtore-evaluatethesourcingofcertainofitsrawmaterialsorriskthelossofbusinesswiththecustomer.thiscouldhavetheeffectoflimitingthepoolof suppliersfromwhichthecompanysourcesitsrawmaterialsandthecompanymaybeunabletoobtainconflict-freerawmaterialsatcompetitiveprices,which couldhaveamaterialadverseeffectonthecompany'sbusiness,financialcondition,resultsofoperations,orcashflows.additionally,giventhecomplexnatureof thecompany'ssupplychainand,insomecases,anextensivechainofcustodyformaterialsthatthecompanyusesinitsproductionprocesses,thecompanymay incursignificantcoststocomplywiththedisclosurerequirements,includingcostsrelatedtodeterminingthesourceofanyoftherelevantmineralsusedinits products. Currency fluctuation could have a material impact on the Company's reported results of business operations. TheCompany'sglobalnetsalesandotheractivitiesaretranslatedintoU.S.dollarsforreportingpurposes.ThestrengtheningorweakeningoftheU.S.dollar couldresultinunfavorabletranslationeffectsastheresultsoftransactionsinforeigncountriesaretranslatedintou.s.dollars.inaddition,salesandpurchasesin currenciesotherthantheu.s.dollarexposethecompanytofluctuationsinforeigncurrenciesrelativetotheu.s.dollar.increasedstrengthoftheu.s.dollarwill decreasethecompany'sreportedrevenuesormarginsinrespectofsalesconductedinforeigncurrenciestotheextentthecompanyisunableordeterminesnotto increaselocalcurrencyprices.likewise,decreasedstrengthoftheu.s.dollarcouldhaveamaterialadverseeffectonthecostofmaterialsandproductspurchased overseas.manyofthecompany'ssalesthatareexportedbyitsu.s.subsidiariestoforeign 11

13 countriesaredenominatedinu.s.dollars,reducingcurrencyexposure.however,increasedstrengthoftheu.s.dollarmaydecreasethecompetitivenessofour U.S.subsidiaries'productsthataresoldinU.S.dollarswithinforeignlocations. Increases in the cost of providing pension benefits and healthcare benefits could adversely affect the Company's business, financial condition, results of operations, and cash flows. PensionexpenseassociatedwiththeCompany'sdefinedbenefitretirementplansmayfluctuatesignificantlydependingonfuturemarketperformanceofplan assetsandchangesinactuarialassumptions. Netincomemaybenegativelyimpactedbyadecreaseintherateofreturnonplanassets.Incomeorexpensefortheplansiscalculatedusingactuarial valuations.unfavorablechangesinkeyeconomicindicatorscanchangetheassumptions.themostsignificantassumptionsusedarethediscountrateandthe expectedlong-termrateofreturnonplanassets.thekeyeconomicfactorsthataffecttheexpensewouldalsolikelyaffecttheamountofcashcontributionstothe corepensionandpost-employmentplans. Tohelpmitigatethefluctuationinfuturecashcontributionstothecorepensionplan,theCompanyimplementedaliabilitydriveninvestmentapproach.This approachseekstoinvestprimarilyinfixedincomeinvestmentstomatchthechangesintheplanliabilitiesthatoccurasaresultofchangesinthediscountrate. Risktoleranceisestablishedthroughcarefulconsiderationofplanliabilities,planfundedstatus,andcorporatefinancialcondition.Theestablishedtargetallocation is88%fixedincomesecuritiesand12%equitysecurities.fixedincomeinvestmentsarediversifiedacrosscorefixedincome,longduration,andhighyieldbonds. EquityinvestmentsarediversifiedacrossU.S.andinternationalstocks.Investmentriskismeasuredandmonitoredonanongoingbasisthroughinvestment portfolioreviews,annualliabilitymeasures,andasset/liabilitystudies. Additionally,theCompany'sbusiness,financialcondition,resultsofoperations,andcashflowsmaybeimpactedbyfutureincreasesinhealthcarecosttrends. Dispositions, failure to successfully complete dispositions, or restructuring activities could negatively affect the Company. Fromtimetotime,theCompany,aspartofitscommitmenttoconcentrateonitscorebusiness,maydisposeofalloraportionofcertainbusinesses.Such dispositionsinvolveanumberofrisksandpresentfinancial,managerial,andoperationalchallenges,includingdiversionofmanagementattentionfromthe Company'scorebusinesses,increasedexpenseassociatedwiththedispositions,potentialdisputeswiththecustomersorsuppliersofthedisposedbusinesses, potentialdisputeswiththeacquirersofthedisposedbusinesses,andapotentialdilutiveeffectonthecompany'searningspershare.ifdispositionsarenot completedinatimelymannertheremaybeanegativeeffectonthecompany'scashflowsand/orthecompany'sabilitytoexecuteitsstrategy.seenote4in Item8fordiscussionofAssetsHeldforSaleandDiscontinuedOperations. Additionally,fromtimetotime,theCompanymayundertakeconsolidationprojectsinanefforttoreducecostsandstreamlineitsoperations.Such restructuringactivitiesmaydivertmanagementattentionfromthecompany'scorebusinesses,increaseexpensesonashort-termbasis,andleadtopotential disputeswiththecustomersorsuppliersoftheaffectedbusinesses.ifrestructuringactivitiesarenotcompletedinatimelymannerorifanticipatedcostsavings, synergies,andefficienciesarenotrealizedtheremaybeanegativeeffectonthecompany'sbusiness,financialcondition,resultsofoperations,andcashflows. 12

14 The Company's operations are subject to regulatory risks. CertainproductsmanufacturedbyourbusinessesoperatingintheaerospaceandmedicalmarketsaresubjecttoextensiveregulationbytheFederalAviation Administration(FAA)andFoodandDrugAdministration(FDA),respectively.Itcanbecostlyandtime-consumingtoobtainandmaintainregulatoryapprovalsas wellasmaintaincertificationstosupplyourproductstooemaerospacecustomersandtoobtainregulatoryapprovalstomarketmedicaldevices.product approvalssubjecttoregulationsmightnotbegrantedfornewdevicesonatimelybasis,ifatall.proposednewregulationsorchangestoregulationscouldresultin theneedtoincursignificantadditionalcoststocomply.continuedgovernmentscrutiny,includingreviewsofthefdamedicaldevicepre-marketauthorization andpost-marketsurveillanceprocesses,mayimpacttherequirementsforourmedicaldeviceinterconnectcomponents.failuretoeffectivelyrespondtochangesto applicablelawsandregulationsorcomplywithexistingandfuturelawsandregulationsmayhaveanegativeeffectonthecompany'sbusiness,financialcondition, resultsofoperations,andcashflows. Item1B.UnresolvedStaffComments. None. Item2.Properties. Thenumber,location,andsizeoftheCompany'sprincipalpropertiesasofDecember31,2015areshownonthefollowingchart,bysegment. Inadditiontothemanufacturingplantsandwarehousingfacilitieslistedabove,weleaseourcorporateofficesinCharlotte,NCandinShanghai,China.We considertheseprincipalproperties,aswellastherelatedmachineryandequipment,tobewellmaintainedandsuitableandadequatefortheirintendedpurpose. Item3.LegalProceedings. InformationpertainingtolegalproceedingscanbefoundinNote11totheConsolidatedFinancialStatementsincludedinthisAnnualReport,andis incorporatedbyreferenceherein. Item4.MineSafetyDisclosures. Notapplicable. Location SquareFootage North No.of (inmillions) Segment America Europe Asia Other Facilities Owned Leased CarlisleConstructionMaterials CarlisleInterconnectTechnologies CarlisleFluidTechnologies CarlisleBrakeandFriction CarlisleFoodServiceProducts Totals

15 PartII Item5.MarketforRegistrant'sCommonEquity,RelatedStockholderMattersandIssuerPurchasesofEquitySecurities. TheCompany'scommonstockistradedontheNewYorkStockExchange.AtDecember31,2015,therewere1,356shareholdersofrecord. QuarterlycashdividendspaidandthehighandlowpricesoftheCompany'sstockontheNewYorkStockExchangein2015and2014wereasfollows: ThefollowingtablesummarizestheCompany'spurchasesofitscommonstockforthequarterendedDecember31,2015: Period 2015 First Second Third Fourth Dividendspershare $ 0.25 $ 0.25 $ 0.30 $ 0.30 StockPrice High $ $ $ $ Low $ $ $ $ First Second Third Fourth Dividendspershare $ 0.22 $ 0.22 $ 0.25 $ 0.25 StockPrice High $ $ $ $ Low $ $ $ $ (a) TotalNumber ofshares Purchased (b) AveragePrice PaidPer Share (c) TotalNumber ofshares Purchasedas PartofPublicly Announced Plansor Programs (d) MaximumNumber (orapproximate DollarValue)of SharesthatMay YetBePurchased UnderthePlansor Programs(1) October ,464 $ ,464 2,212,631 November ,782 $ ,782 1,859,849 December ,103 $ ,103 1,517,746 Total 905, ,349 (1) RepresentsthenumberofsharesthatcanberepurchasedundertheCompany'sstockrepurchaseprogram.Thestockrepurchaseprogram wasoriginallyapprovedonnovember3,1999,andwasreactivatedonaugust17,2004.atthetimeoftheadoption,thecompanyhadthe authoritytopurchase741,890split-adjustedsharesofcommonstock.theboardofdirectorsauthorizedtherepurchaseofanadditional 2,500,000sharesoftheCompany'scommonstockonAugust1,2007,andtherepurchaseofanadditional1,400,000sharesofthe Company'scommonstockonFebruary12,2008. (2) TheCompanymayalsoreacquiresharesoutsideoftherepurchaseprogramfromtimetotimeinconnectionwiththeforfeitureofsharesin satisfactionoftaxwithholdingobligationsfromthevestingofshare-basedcompensation.therewerenosharesreacquiredintransactions outsidetherepurchaseprogramduringthethreemonthsendeddecember31,

16 Item6.SelectedFinancialData. Five-YearSummary (inmillionsexceptshares, shareholdersofrecord,andpersharedata) SummaryofOperations Netsales $ 3,543.2 $ 3,204.0 $ 2,943.0 $ 2,851.2 $ 2,492.4 Grossmargin $ 1,006.7 $ $ $ $ Selling&administrativeexpenses $ $ $ $ $ Research&developmentexpenses $ 42.8 $ 33.8 $ 29.3 $ 26.1 $ 21.7 Other(income)expense,net $ 0.1 $ (1.6) $ (4.2) $ 12.4 $ (2.4) Earningsbeforeinterestandincometaxes $ $ $ $ $ Interestexpense,net $ 34.0 $ 32.2 $ 33.8 $ 25.5 $ 21.0 Incomefromcontinuingoperations,netoftax $ $ $ $ $ Basicearningspershare $ 4.89 $ 3.89 $ 3.69 $ 3.64 $ 2.77 Dilutedearningspershare $ 4.82 $ 3.83 $ 3.61 $ 3.57 $ 2.73 Income(loss)incomefromdiscontinuedoperations,netoftax $ 0.1 $ (0.4) $ (25.5) $ 41.5 $ 8.3 Basic(loss)earningspershare $ $ $ (0.40) $ 0.66 $ 0.14 Diluted(loss)earningspershare $ $ (0.01) $ (0.39) $ 0.65 $ 0.13 Netincome $ $ $ $ $ Basicearningspershare $ 4.89 $ 3.89 $ 3.29 $ 4.30 $ 2.91 Dilutedearningspershare $ 4.82 $ 3.82 $ 3.22 $ 4.22 $ 2.86 FinancialPosition Networkingcapital(1) $ $ 1,219.3 $ 1,158.6 $ $ Property,plantandequipment,net(held&used) $ $ $ $ $ Totalassets $ 3,954.1 $ 3,758.7 $ 3,493.0 $ 3,457.3 $ 3,137.9 Long-termdebt $ $ $ $ $ %oftotalcapitalization(2) Shareholders'equity $ 2,347.4 $ 2,205.0 $ 1,986.1 $ 1,788.1 $ 1,500.1 OtherData Averagesharesoutstanding basic(in thousands) 64,844 64,170 63,471 62,513 61,457 Averagesharesoutstanding diluted(in thousands) 65,804 65,304 64,806 63,610 62,495 Dividendspaid $ 72.3 $ 61.2 $ 53.7 $ 48.0 $ 43.5 Pershare $ 1.10 $ 0.94 $ 0.84 $ 0.76 $ 0.70 Capitalexpenditures $ 72.1 $ $ $ $ 79.6 Depreciation&amortization $ $ $ $ $ 88.0 Shareholdersofrecord 1,356 1,407 1,498 1,591 1,669 (1) Networkingcapitalisdefinedastotalcurrentassetslesstotalcurrentliabilities. (2) Percentoftotalcapitalizationisdefinedaslong-termdebtdividedbylong-termdebtplusshareholders'equity. 15

17 Item7.Management'sDiscussionandAnalysisofFinancialConditionandResultsofOperations. Executive Overview Weareamulti-nationalcompanythatdesigns,manufacturesandsellsawiderangeofproductsthroughoutNorthAmerica,WesternEurope,andtheAsia Pacificregionviathefollowingsegments: CarlisleConstructionMaterials("CCM"orthe"ConstructionMaterialssegment"); CarlisleInterconnectTechnologies("CIT"orthe"InterconnectTechnologiessegment"); CarlisleFluidTechnologies("CFT"orthe"FluidTechnologiessegment"); CarlisleBrake&Friction("CBF"orthe"Brake&Frictionsegment");and CarlisleFoodServiceProducts("CFSP"orthe"FoodServiceProductssegment"). Wearefocusedonachievingprofitablegrowthinthesesegmentsbothorganically,throughnewproductdevelopment,productlineextensions,andentering newmarkets,andthroughacquisitionsofbusinessesthatcomplementourexistingtechnologies,products,andmarketchannels.wehaveapproximately12,000 employees.wefocusonobtainingprofitablegrowththrough: Year-over-yearimprovementinsales,earningsbeforeinterestandincometaxes("EBIT")margins,netearningsandreturnoninvestedcapital ("ROIC"), Reductionofworkingcapital(definedasreceivables,inventories,netofaccountspayable)asapercentageofnetsales, Globalization,and Maintenanceofastrongandflexiblebalancesheet. Resourcesareallocatedamongtheoperatingcompaniesbasedonmanagement'sassessmentoftheirabilitytoobtainleadershippositionsandcompetitive advantagesinthemarketstheyserve. AkeyphilosophyinhowwedriveprofitablegrowthorganicallyistheCarlisleOperatingSystem("COS").COSisamanufacturingstructureandstrategy deploymentsystembasedonleanenterpriseandsixsigmaprinciplesandisacontinuousimprovementprocessthatdefinesthewaywedobusiness.wasteis eliminatedandefficienciesimprovedenterprisewide.improvementsarenotlimitedtoproductionareas,ascosalsodrivesimprovementsinnewproduct innovation,engineering,supplychainmanagement,warranty,andproductrationalization.coshascreatedacultureofcontinuousimprovementacrossallaspects ofthecompany'sbusinessoperations. Anotherkeystrategyindrivingprofitablegrowthisthroughacquisitions.Wetypicallyacquirebusinessesthatarecomplementarytoourexistingsegments andcanbeintegratedintothem.however,fromtimetotimewemayacquirenewbusinessesthatcanoperateindependentlyfromothersegments.factorswe considerinmakinganacquisitionincludetheabilityoftheacquiredbusinessestodriveprofitablegrowthinthefuturebyincreasingourebitmargins,operating cashflows,andnetearnings.wehavealsopursuedthesaleofbusinesseswhenitisdeterminedtheynolongerfitwithinthecompany'slong-termgoalsor strategy. Inconnectionwithourgrowthandacquisitionstrategy,onApril1,2015,theCompanyacquiredtheFinishingBrandsbusinessfromGracoInc.("Graco")for totalcashconsiderationof$598.9million.thecompanyaddedareportablesegment,fluidtechnologies,toreflecttheacquisitionoffinishingbrands.fluid Technologiesisaglobalmanufacturerandsupplieroffinishingequipmentandsystemsservingdiverseendmarketsforpaintsandcoatings,includingoriginal equipment("oe")automotive,automotiverefinishing,aerospace,agriculture,construction,marine,rail,andotherindustrialapplications.fromtheperiod beginningapril1,2015throughdecember31,2015,fluidtechnologieshascontributednetsalesof$203.2millionandebitof$20.8milliontothecompany's 2015results. 16

18 Foramorein-depthdiscussionoftheresultsdiscussedinthis"ExecutiveOverview",pleaserefertothediscussionon"FinancialReportingSegments" presentedlaterin"management'sdiscussionandanalysisoffinancialconditionandresultsofoperations". FortheyearendedDecember31,2015,netsalesincreased11%to$3.54billion,comparedto$3.20billionintheprioryear,primarilyreflectingsalesfrom theacquiredfinishingbrandsandlhibusinessesof8.8%.ourorganicnetsalesgrowth(definedasnetsalesexcludingsalesfromacquiredbusinesseswithinthe lasttwelvemonths,aswellastheimpactofchangesinforeignexchangerates)of3.6%primarilyreflectedincreasedsalesvolumesatconstructionmaterialsand InterconnectTechnologies,partiallyoffsetbylowersalesvolumeatBrakeandFrictionandlowersellingprice.Foreigncurrencyfluctuationshadanegative impacttonetsalesof1.8%. FortheyearendedDecember31,2015,EBITrose23%to$501.9million,primarilydrivenbylowerrawmaterialcosts,particularlyatConstructionMaterials relatedtomaterialsthataretiedtocrudeoilaswellasrelatedlowerenergycosts,lowerlaborandmaterialusagecostsfromcos,lowerperunitcostsresulting fromhighercapacityutilizationdrivenbyhighernetsalesvolume,andtheaforementionedacquisitions.thesepositiveimpactswerepartiallyoffsetbylower sellingprice.carlisle'soverallebitmarginin2015rose150basispointsto14.2%,primarilyreflectinglowerrawmaterialcostsandlowerlaborandmaterial usagecostsfromthecarlisleoperatingsystem.includedinebitin2015was$10.7millioninnon-recurringcostsrelatedtotheacquisitionoffinishingbrands. Bycomparison,includedinEBITin2014was$9.0millioninplantstartupcostsatConstructionMaterialsand$3.5millionincostsrelatedtotheacquisitionof LHi. FortheyearendedDecember31,2015,incomefromcontinuingoperations,netoftax,of$319.6million,or$4.82perdilutedshare,grew27%in2015from incomeof$251.7million,or$3.83perdilutedshare,in2014.theincreasewasduetohigherebitdrivenbytheaforementionedfactors.formoreinformation regardingthechangeinincomefromcontinuingoperationsfrom2014to2015,refertothediscussionbelowon"2015comparedto2014". FortheyearendedDecember31,2014,netsalesincreased8.9%to$3.20billionfromnetsalesof$2.94billionfortheyearendedDecember31,2013. Organicnetsalesin2014grew7.9%primarilyreflecting11%organicnetsalesgrowthatInterconnectTechnologies,onstrongdemandforaerospaceapplications, andorganicnetsalesgrowthof8.9%atconstructionmaterials,onstrongdemandforcommercialroofing.overallnetsalesatbrake&frictionandfoodservice Productsgrewmodestlyduring2014.TheacquisitionofLHi,thatoccurredonOctober1,2014,contributed$26.1million,or0.9%,tonetsalesin2014. FortheyearendedDecember31,2014,EBITgrew11%andEBITmarginincreased20basispointsto12.7%reflectinglowerperunitcostsresultingfrom highercapacityutilizationdrivenbyhighernetsalesvolumeaswellaslowerlaborandmaterialusagecostsfromcos.theseebitmarginimprovementswere partiallyoffsetbylowersellingprice,and,atconstructionmaterials,higherplantstartupandproductlineclosingcostsversustheprioryearandhigherfreight expense. FortheyearendedDecember31,2014,incomefromcontinuingoperations,netoftaxincreased7.0%to$251.7million,or$3.83perdilutedshare,from incomeof$235.2million,or$3.61perdilutedshare,fortheyearendeddecember31,2013.includedinincomefromcontinuingoperationsfortheyearended December31,2013wasataxbenefitof$11.8millionfromthereleaseofadeferredtaxliabilityfromanelectioninaforeignjurisdictionthatresultedinan increaseinthetaxbasisofaninternationaloperation.formoreinformationregardingthechangeinincomefromcontinuingoperationsfrom2013to2014,referto thediscussionbelowon"2014comparedto2013". In2016,weexpecttotalnetsalesgrowthtobeinthemid-singledigitpercentagerange.Netsalesgrowthisexpectedtobeprimarilydrivenbygrowthat InterconnectTechnologies,onhigherdemandforaerospaceandmedicalconnectorapplications,andgrowthatFluidTechnologies,reflectingnew 17