Carlisle Companies (CSL) is a building envelope manufacturer operating two segments, CCM (commercial roofing membranes, insulation) and CWT (weatherproofing, spray foam, moisture protection). Under a liquidation lens, the company carries deeply negative equity recovery across all three MFFAIS valuation tiers: CLV -$2.7B, LLV -$2.0B, OLV -$1.5B as of Q1 2026. The asymmetry is structural and persistent: the liability stack is dominated by $2.89B in long-term debt at face value (five fixed-rate unsecured note tranches ranging from 2.20% to 5.55%, maturing 2027-2040), while the asset side is heavily weighted toward intangibles that receive zero liquidation credit. At March 31, 2026, goodwill stands at $1.54B and other intangibles net of amortization at $1.39B, together representing approximately 49% of total assets of $5.99B — all zeroed under the liquidation framework. PP&E net book value is $813M; at a 50-70% haircut, recoverable value is $407M-$569M. Inventory of $481M (60% haircut) yields $289M. AR of $692M (90-95% haircut) yields $623M-$657M. Cash of $771M recovers at par. Applying standard haircuts, gross recoverable asset value approximates $2.2B-$2.5B against total liabilities of approximately $4.3B (current liabilities $601M + long-term debt $2.89B + deferred taxes $245M + other noncurrent liabilities $262M + contract liabilities $375M), producing a deeply negative equity recovery consistent with MFFAIS estimates. The material change since the prior annual filing (10-K, December 31, 2025) is the August 2025 issuance of $1.0B in new senior notes (5.25% due 2035 and 5.55% due 2040), which added approximately $1.0B to the face-value liability stack with no corresponding tangible asset recovery. Interest expense doubled YoY to $28.3M in Q1 2026. Cash declined $341M in the quarter to $771M, driven by $250M share repurchases and $46M dividends, partially offset by operating and investing cash. The company also paid a $125M post-year-end accrued tax-related liability in Q1 2026, which is disclosed in MD&A but not separately XBRL-tagged. The revolving credit facility ($1.0B available, zero drawn) and $48M in letters of credit outstanding do not change the liquidation liability posture materially. Contract liabilities (extended service warranties) totaling $375M, with $344M classified as noncurrent, represent a genuine liquidation-day obligation — the stand-ready warranty obligation does not extinguish and must be settled or transferred at face. The OLV tier improvement relative to CLV/LLV reflects the partial tangible asset base (PP&E and inventory) that retains some recovery value.
▼ Community Notes