Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 17, 2021 | Jun. 30, 2020 | |
Entity Listings [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 1-13179 | ||
Entity Registrant Name | FLOWSERVE CORP | ||
Entity Incorporation, State or Country Code | NY | ||
Entity Tax Identification Number | 31-0267900 | ||
Entity Address, Address Line One | 5215 N. O'Connor Boulevard Suite 2300, | ||
Entity Address, City or Town | Irving, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75039 | ||
City Area Code | 972 | ||
Local Phone Number | 443-6500 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,069,855,077 | ||
Entity Common Stock, Shares Outstanding | 130,276,070 | ||
Documents Incorporated by Reference | Certain information contained in the definitive proxy statement for the registrant’s 2021 Annual Meeting of Shareholders scheduled to be held on May 20, 2021 is incorporated by reference into Part III hereof. | ||
Entity Central Index Key | 0000030625 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Common Stock | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Common Stock, $1.25 Par Value | ||
Trading Symbol | FLS | ||
Security Exchange Name | NYSE | ||
2022 Senior notes | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | 1.25% Senior Notes due 2022 | ||
Trading Symbol | FLS22A | ||
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 1,095,274 | $ 670,980 |
Accounts receivable, net | 753,462 | 795,538 |
Contract assets, net | 277,734 | 272,914 |
Inventories, net | 667,228 | 660,837 |
Prepaid expenses and other | 110,635 | 106,478 |
Total current assets | 2,904,333 | 2,506,747 |
Property, plant and equipment, net | 556,873 | 563,564 |
Operating lease right-of-use assets, net | 208,125 | 186,218 |
Goodwill | 1,224,886 | 1,193,010 |
Deferred taxes | 30,538 | 54,879 |
Other intangible assets, net | 168,496 | 180,805 |
Other assets, net | 221,426 | 253,054 |
Total assets | 5,314,677 | 4,938,277 |
Current liabilities: | ||
Accounts payable | 440,199 | 447,582 |
Accrued liabilities | 463,222 | 401,385 |
Contract liabilities | 194,227 | 221,095 |
Debt due within one year | 8,995 | 11,272 |
Operating lease liabilities | 34,990 | 36,108 |
Total current liabilities | 1,141,633 | 1,117,442 |
Long-term debt due after one year | 1,717,911 | 1,365,977 |
Operating lease liabilities | 176,246 | 151,523 |
Retirement obligations and other liabilities | 516,087 | 530,994 |
Commitments and contingencies (See Note 16) | ||
Shareholders’ equity: | ||
Common shares, $1.25 par value, Shares authorized - 305,000, Shares issued - 176,793 and 176,793, respectively | 220,991 | 220,991 |
Capital in excess of par value | 502,227 | 501,045 |
Retained earnings | 3,656,449 | 3,652,244 |
Treasury shares, at cost — 46,768 and 46,262 shares, respectively | (2,059,309) | (2,051,583) |
Deferred compensation obligation | 6,164 | 8,334 |
Accumulated other comprehensive loss | (594,052) | (584,292) |
Total Flowserve Corporation shareholders’ equity | 1,732,470 | 1,746,739 |
Noncontrolling interests | 30,330 | 25,602 |
Total equity | 1,762,800 | 1,772,341 |
Total liabilities and equity | $ 5,314,677 | $ 4,938,277 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Shareholders’ equity: | ||
Common shares, par value (in dollars per share) | $ 1.25 | $ 1.25 |
Common stock, shares authorized (in shares) | 305,000 | 305,000 |
Common shares, shares issued (in shares) | 176,793 | 176,793 |
Treasury shares, shares (in shares) | 46,768 | 46,262 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | |||
Sales | $ 3,728,134 | $ 3,939,697 | $ 3,835,699 |
Cost of sales | (2,611,365) | (2,650,354) | (2,644,830) |
Gross profit | 1,116,769 | 1,289,343 | 1,190,869 |
Selling, general and administrative expense | (878,245) | (913,203) | (966,584) |
Loss on sale of business | 0 | 0 | (7,727) |
Net earnings from affiliates | 11,753 | 10,483 | 11,143 |
Operating income | 250,277 | 386,623 | 227,701 |
Interest expense | (57,386) | (54,980) | (58,160) |
Interest income | 4,175 | 8,409 | 6,465 |
Other income (expense), net | (10,254) | (17,619) | (19,569) |
Earnings before income taxes | 186,812 | 322,433 | 156,437 |
Provision for income taxes | (60,031) | (75,493) | (46,550) |
Net earnings, including noncontrolling interests | 126,781 | 246,940 | 109,887 |
Less: Net earnings attributable to noncontrolling interests | (10,455) | (8,112) | (5,379) |
Net earnings attributable to Flowserve Corporation | $ 116,326 | $ 238,828 | $ 104,508 |
Net earnings per share attributable to Flowserve Corporation common shareholders: | |||
Basic (in dollars per share) | $ 0.89 | $ 1.82 | $ 0.80 |
Diluted (in dollars per share) | $ 0.89 | $ 1.81 | $ 0.80 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings, including noncontrolling interests | $ 126,781 | $ 246,940 | $ 109,887 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments, net of deferred taxes of $11,104, $(740) and $(490) in 2020, 2019 and 2018, respectively | 388 | 6,561 | (63,146) |
Pension and other postretirement effects, net of deferred taxes of $(311), $(598)and $3,103 in 2020, 2019 and 2018, respectively | (9,562) | (16,514) | (4,892) |
Cash flow hedging activity, net | 183 | 187 | 232 |
Other comprehensive income (loss) | (8,991) | (9,766) | (67,806) |
Comprehensive income, including noncontrolling interests | 117,790 | 237,174 | 42,081 |
Comprehensive income attributable to noncontrolling interests | (11,225) | (8,691) | (6,047) |
Comprehensive income attributable to Flowserve Corporation | $ 106,565 | $ 228,483 | $ 36,034 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign curency translation, taxes | $ 11,104 | $ (740) | $ (490) |
Pension and other postretirement effects, taxes | $ (311) | $ (598) | $ 3,103 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Capital in Excess of Par Value | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Treasury Stock | Deferred Compensation Obligation | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
Balance — (in shares) at Dec. 31, 2017 | 176,793 | 46,471 | ||||||||
Balance — at Dec. 31, 2017 | $ 1,658,531 | $ 18,450 | $ 220,991 | $ 488,326 | $ 3,491,524 | $ 18,450 | $ (2,059,558) | $ 6,354 | $ (505,473) | $ 16,367 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock activity under stock plans | (3,533) | (13,687) | $ 10,154 | |||||||
Stock activity under stock plans (in shares) | 234 | |||||||||
Stock-based compensation | 19,912 | 19,912 | ||||||||
Tax benefit associated with stock-based compensation | 0 | 0 | ||||||||
Net earnings | 109,887 | 104,508 | 5,379 | |||||||
Cash dividends declared | (100,253) | (100,253) | ||||||||
Other comprehensive loss, net of tax | (67,806) | (68,474) | 668 | |||||||
Other, net | (3,185) | 763 | (3,948) | |||||||
Balance — (in shares) at Dec. 31, 2018 | 176,793 | 46,237 | ||||||||
Balance — at Dec. 31, 2018 | $ 1,632,003 | $ 220,991 | 494,551 | 3,514,229 | $ (2,049,404) | 7,117 | (573,947) | 18,466 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201613Member | |||||||||
Stock activity under stock plans | $ (3,350) | (17,388) | $ 12,821 | 1,217 | ||||||
Stock activity under stock plans (in shares) | 300 | |||||||||
Stock-based compensation | 23,882 | 23,882 | ||||||||
Net earnings | 246,940 | 238,828 | 8,112 | |||||||
Cash dividends declared | (100,813) | (100,813) | ||||||||
Other comprehensive loss, net of tax | (9,766) | (10,345) | 579 | |||||||
Other, net | (1,555) | (1,555) | ||||||||
Repurchases of common shares (in shares) | (325) | |||||||||
Repurchases of common shares | $ (15,000) | $ (15,000) | ||||||||
Balance — (in shares) at Dec. 31, 2019 | 176,793 | 176,793 | 46,262 | |||||||
Balance — at Dec. 31, 2019 | $ 1,772,341 | $ (7,291) | $ 220,991 | 501,045 | 3,652,244 | $ (7,291) | $ (2,051,583) | 8,334 | (584,292) | 25,602 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock activity under stock plans | (3,854) | (26,070) | $ 24,386 | (2,170) | ||||||
Stock activity under stock plans (in shares) | 551 | |||||||||
Stock-based compensation | 27,252 | 27,252 | ||||||||
Net earnings | 126,781 | 116,326 | 10,455 | |||||||
Cash dividends declared | (104,830) | (104,830) | ||||||||
Other comprehensive loss, net of tax | (8,991) | (9,760) | 769 | |||||||
Other, net | (6,496) | (6,496) | ||||||||
Repurchases of common shares (in shares) | (1,057) | |||||||||
Repurchases of common shares | $ (32,112) | $ (32,112) | ||||||||
Balance — (in shares) at Dec. 31, 2020 | 176,793 | 176,793 | 46,768 | |||||||
Balance — at Dec. 31, 2020 | $ 1,762,800 | $ 220,991 | $ 502,227 | $ 3,656,449 | $ (2,059,309) | $ 6,164 | $ (594,052) | $ 30,330 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows — Operating activities: | |||
Net earnings, including noncontrolling interests | $ 126,781 | $ 246,940 | $ 109,887 |
Adjustments to reconcile net earnings to net cash provided (used) by operating activities: | |||
Depreciation | 86,175 | 92,042 | 95,820 |
Amortization of intangible and other assets | 14,578 | 13,862 | 16,653 |
Loss on disposition of business | 0 | 0 | 7,727 |
Stock-based compensation | 27,252 | 23,882 | 19,912 |
Provision for U.S. Tax Cuts and Jobs Act of 2017 | 0 | 0 | (5,654) |
Foreign currency, asset impairment and other non-cash adjustments | 21,051 | (11,724) | 36,052 |
Change in assets and liabilities: | |||
Accounts receivable, net | 45,648 | 2,883 | (25,448) |
Inventories, net | 15,306 | (31,058) | (29,314) |
Contract assets, net | 4,258 | (45,220) | (24,411) |
Prepaid expenses and other assets, net | 34,262 | (9,455) | (15,491) |
Contract liabilities | (34,066) | 19,699 | 32,955 |
Accounts payable | (22,571) | 24,678 | 7,589 |
Accrued liabilities and income taxes payable | 50,203 | 12,418 | (15,248) |
Retirement obligations and other | 3,636 | (3,357) | (26,595) |
Net deferred taxes | (61,976) | (11,493) | 6,397 |
Net cash flows provided (used) by operating activities | 310,537 | 324,097 | 190,831 |
Cash flows — Investing activities: | |||
Capital expenditures | (57,405) | (75,716) | (83,993) |
Proceeds from disposal of assets | 15,705 | 42,333 | 6,190 |
Payments for disposition of business | 0 | 0 | (3,663) |
Net cash flows provided (used) by investing activities | (41,700) | (33,383) | (81,466) |
Cash flows — Financing activities: | |||
Payments on long-term debt | (191,258) | (105,000) | (60,000) |
Proceeds from issuance of senior notes | 498,280 | 0 | 0 |
Payments of deferred loan costs | (4,572) | 0 | 0 |
Proceeds from short-term financing | 0 | 75,000 | 0 |
Payments on short-term financing | 0 | (75,000) | 0 |
Proceeds under other financing arrangements | 2,285 | 3,404 | 3,377 |
Payments under other financing arrangements | (9,792) | (9,856) | (9,853) |
Payments related to tax withholding for stock-based compensation | (4,607) | (3,900) | (3,061) |
Repurchases of common shares | (32,112) | (15,000) | 0 |
Payments of dividends | (104,159) | (99,557) | (99,416) |
Other | (6,478) | (1,555) | (4,331) |
Net cash flows provided (used) by financing activities | 147,587 | (231,464) | (173,284) |
Effect of exchange rate changes on cash | 7,870 | (7,953) | (19,843) |
Net change in cash and cash equivalents | 424,294 | 51,297 | (83,762) |
Cash and cash equivalents at beginning of year | 670,980 | 619,683 | 703,445 |
Cash and cash equivalents at end of year | 1,095,274 | 670,980 | 619,683 |
Income taxes paid (net of refunds) | 75,342 | 66,372 | 87,009 |
Interest paid | $ 57,041 | $ 53,607 | $ 54,576 |
Significant Accounting Policies
Significant Accounting Policies and Accounting Developments | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Accounting Developments | SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING DEVELOPMENTS We are principally engaged in the worldwide design, manufacture, distribution and service of industrial flow management equipment. We provide long lead time, custom and other highly-engineered pumps; standardized, general-purpose pumps; mechanical seals; engineered and industrial valves; related automation products; and services and solutions primarily for oil and gas, chemical, power generation, water management and other general industries requiring flow management products and services. Equipment manufactured and serviced by us is predominantly used in industries that deal with difficult-to-handle and corrosive fluids, as well as environments with extreme temperatures, pressure, horsepower and speed. Our business is affected by economic conditions in the United States ("U.S.") and other countries where our products are sold and serviced, by the cyclical nature and competitive environment of our industries served, by the relationship of the U.S. dollar to other currencies and by the demand for and pricing of our customers’ end products. Revision to Previously Reported Financial Information — In conjunction with our close process for the third quarter of 2020, we identified accounting errors related to the recognition of a liability for unasserted asbestos claims. The adjustments primarily related to an incurred but not reported ("IBNR") liability associated with unasserted asbestos claims, but also included adjustments related to the associated receivables for expected insurance proceeds for asbestos settlement and defense costs from insurance coverage and the recognition as an expense the related legal fees that were previously estimated to be recoverable from insurance carriers for which coverage is not currently sufficient following the recognition of the IBNR for periods beginning with the year ended December 31, 2014 through the second quarter of 2020 and to correct certain other previously identified immaterial errors. We have assessed these errors, individually and in the aggregate, and concluded that they were not material to any prior periods. However, the aggregate amount of the prior period errors would have been material to our consolidated statements of income and full year results and therefore, we have revised our previously issued audited consolidated financial information for the fiscal years ended December 31, 2019 and 2018. Interim periods for the three-months ended March 31, 2020 and the three and six-months ended June 30, 2020 will be revised in connection with the corresponding 2021 interim filings. Refer to Note 2 to our consolidated financial statements included in this Annual Report for additional information. Coronavirus Pandemic ("COVID-19") and Oil and Gas Market — Over the past year, we have been challenged by macroeconomics and global economic impacts based on the disruption and uncertainties caused by COVID-19 and the emanating impacts of the pandemic on pricing and dampened demand for oil, further resulting in instability and volatility in oil commodity prices. To date, the COVID-19 pandemic has had widespread implications worldwide and has caused substantial economic uncertainty and challenging operational conditions. For example, during the year, these conditions drove the announcement of significant and broad-based decreases in customer planned capital spending. As a result, many of our large customers have announced and executed on double-digit capital expenditure budget decreases for 2020, resulting in lower bookings during 2020 as compared to the prior year. Principles of Consolidation — The consolidated financial statements include the accounts of our company and our wholly and majority-owned subsidiaries. In addition, we would consolidate any variable interest entities for which we are deemed to be the primary beneficiary. Noncontrolling interests of non-affiliated parties have been recognized for all majority-owned consolidated subsidiaries. Intercompany profits/losses, transactions and balances among consolidated entities have been eliminated from our consolidated financial statements. In the ordinary course of our operations worldwide, we have entered into joint ventures and interests (collectively referred to as “affiliates”) to provide greater flexibility in delivering our products and services, gain access to markets and geographical locations and reduce exposure and diversify risk. Investments in affiliate companies with a noncontrolling ownership interests between 20% and 50%, are unconsolidated and are accounted for using the equity method, which approximates our equity interest in their underlying equivalent net book value under accounting principles generally accepted in the U.S. ("U.S. GAAP"). All equity method investments are reviewed for impairment whenever events and conditions indicate that a decrease in the value of an investment has occurred that is other than temporary. If impaired, an impairment loss representing the difference between our carrying value and fair value is recorded and the investment is written down to a new carrying value. Investment in affiliate companies where we own less than 20% are accounted for by the cost method, whereby income is only recognized in the event of dividend receipt. Investments accounted for by the cost method are tested for impairment if an impairment indicator is present. Use of Estimates — The process of preparing financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect reported amounts of certain assets, liabilities, revenues and expenses. We believe our estimates and assumptions are reasonable; however, actual results may differ materially from such estimates. The full extent to which the COVID-19 pandemic directly or indirectly impacts our business, results of operations and financial condition, including sales, expenses, our allowance for expected credit losses, stock based compensation, the carrying value of our goodwill and other long-lived assets, financial assets, and valuation allowances for tax assets, will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain it or treat it, as well as the economic impact on local, regional, national and international customers, suppliers and markets. We have made estimates of the impact of COVID-19 within our financial statements and there may be changes to those estimates in the near to mid-term as new information becomes available. The most significant estimates and assumptions are used in determining: • Timing and amount of revenue recognition; • Deferred taxes, tax valuation allowances and tax reserves; • Reserves for contingent loss; • Pension and postretirement benefits; and • Valuation of goodwill, indefinite-lived intangible assets and other long-lived assets. Argentina Highly Inflationary — Effective July 1, 2018, Argentina was designated as hyperinflationary, and as a result, we began using the U.S. dollar as our functional currency in Argentina. Our Argentinian subsidiary's sales and assets for the year ended December 31, 2020 represented approximately 1% of consolidated sales and total consolidated assets at December 31, 2020 . As sets primarily consisted of U.S. dollar-denominated monetary assets and Argentinian peso-denominated non-monetary assets at December 31, 2020. In addition, certain of our operations in other countries sell equipment and parts that are typically denominated in U.S. dollars directly to Argentinian customers. Revenue Recognition — We adopted Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("New Revenue Standard") on January 1, 2018, using the modified retrospective method for transition, which resulted in a cumulative adjustment to opening retained earnings as of January 1, 2018. The majority of our revenues relate to customer orders that typically contain a single commitment of goods or services which have lead times under a year. Longer lead time, more complex contracts with our customers typically have multiple commitments of goods and services, including any combination of designing, developing, manufacturing, modifying, installing and commissioning of flow management equipment and providing services and parts related to the performance of such products. We recognize revenue when (or as) we satisfy a performance obligation by transferring control to a customer. Transfer of control is evaluated based on the customer’s ability to direct the use of and obtain substantially all of the benefits of a performance obligation. Revenue is recognized either over time or at a point in time, depending on the specific facts and circumstances for each contract, including the terms and conditions of the contract as agreed with the customer and the nature of the products or services to be provided. Our primary method for recognizing revenue over time is the percentage of completion (“POC”) method, whereby progress towards completion is measured by applying an input measure based on costs incurred to date relative to total estimated costs at completion. If control of the products and/or services does not transfer over time, then control transfers at a point in time. We determine the point in time that control transfers to a customer based on the evaluation of specific indicators, such as title transfer, risk of loss transfer, customer acceptance and physical possession. For a detailed discussion related to revenue recognition refer to Note 3. Cash and Cash Equivalents — We place temporary cash investments with financial institutions and, by policy, invest in those institutions and instruments that have minimal credit risk and market risk. These investments, with an original maturity of three months or less when purchased, are classified as cash equivalents. They are highly liquid and principal values are not subject to significant risk of change due to interest rate fluctuations. Accounts Receivable, Allowance for Doubtful Accounts and Credit Risk — Trade accounts receivables are recorded at the invoiced amount and do not bear interest. We establish an allowance for expected credit losses on an aging schedule and according to historical losses as determined from our billings and collections history. Additionally, we consider factors that are specific to our customers’ credit risk such as financial difficulties, liquidity issues, insolvency, and country and political risk. We also consider both the current and forecasted direction of macroeconomic conditions at the reporting date in estimating expected credit losses. Receivables are written off against the allowance in the period when the receivable is deemed to be uncollectible. Subsequent recoveries of amounts previously written off are reflected as a reduction to credit impairment losses in the income statement. Credit risks are mitigated by the diversity of our customer base across many different geographic regions and industries and by performing creditworthiness analyses on our customers. Additionally, we mitigate credit risk through letters of credit and advance payments received from our customers. We do not believe that we have any other significant concentrations of credit risk. Inventories and Related Reserves — Inventories are stated at the lower of cost and net realizable value. Cost is determined by the first-in, first-out method. Reserves for excess and obsolete inventories are based upon our assessment of market conditions for our products determined by historical usage and estimated future demand. Due to the long life cycles of our products, we carry spare parts inventories that have historically low usage rates and provide reserves for such inventory based on demonstrated usage and aging criteria. Income Taxes, Deferred Taxes, Tax Valuation Allowances and Tax Reserves — We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are calculated using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. We record valuation allowances to reduce the carrying value of deferred tax assets to amounts that we expect are more likely than not to be realized. We assess existing deferred tax assets, net operating losses and tax credits by jurisdiction and expectations of our ability to utilize these tax attributes through a review of past, current and estimated future taxable income and establishment of tax planning strategies. We provide deferred taxes for the temporary differences associated with our investment in foreign subsidiaries that have a financial reporting basis that exceeds tax basis, unless we can assert permanent reinvestment in foreign jurisdictions. Financial reporting basis and tax basis differences in investments in foreign subsidiaries consist of both unremitted earnings and losses, as well as foreign currency translation adjustments. The amount of income taxes we pay is subject to ongoing audits by federal, state, and foreign tax authorities, which often result in proposed assessments. We establish reserves for open tax years for uncertain tax positions that may be subject to challenge by various tax authorities. The consolidated tax provision and related accruals include the impact of such reasonably estimable losses and related interest and penalties as deemed appropriate. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The determination is based on the technical merits of the position and presumes that each uncertain tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. Legal and Environmental Contingencies — Legal and environmental reserves are recorded based upon a case-by-case analysis of the relevant facts and circumstances and an assessment of potential legal obligations and costs. Amounts relating to legal and environmental liabilities are recorded when it is probable that a loss has been incurred and such loss is reasonably estimable. Assessments of legal and environmental costs are based on information obtained from our independent and in-house experts and our loss experience in similar situations. Estimates are updated as applicable when new information regarding the facts and circumstances of each matter becomes available. Legal fees associated with legal and environmental liabilities are expensed as incurred. We are a defendant in a number of lawsuits that seek to recover damages for personal injury allegedly resulting from exposure to asbestos-containing products formerly manufactured and/or distributed by heritage companies of the Company. We have estimated that the liability for pending and future claims not yet asserted, and which are probable and estimable, could be experienced through 2049, which represents the expected end of our asbestos liability exposure with no further ongoing claims expected beyond that date. This estimate is based on the Company's historical claim experience and estimates of the number and resolution cost of potential future claims that may be filed based on anticipated levels of unique plaintiff asbestos-related claims in the U.S. tort system against all defendants, the diminished volatility and consistency of observable claims data, the period of time that has elapsed since we stopped manufacturing products that contained encapsulated asbestos and an expected downward trend in claims due to the average age of our claimants. This estimate is not discounted to present value. In light of the uncertainties and variables inherent in the long-term projection of the total asbestos liability, as part of our ongoing review of asbestos claims, each year we will reassess the projected liability of unasserted asbestos claims to be filed through 2049, and we will continually reassess the time horizon over which a reasonable estimate of unasserted claims can be projected. We assess the sufficiency of the estimated liability for pending and future claims on an ongoing basis by evaluating actual experience regarding claims filed, settled and dismissed, and amounts paid in settlements. In addition to claims and settlement experience, we consider additional quantitative and qualitative factors such as changes in legislation, the legal environment and the Company's defense strategy. In connection with our ongoing review of asbestos-related claims, we have also reviewed the amount of potential insurance coverage for such claims, taking into account the remaining limits of such coverage, the number and amount of claims on our insurance from co-insured parties, ongoing litigation against the Company’s insurers, potential remaining recoveries from insolvent insurers, the impact of previous insurance settlements and coverage available from solvent insurers not party to the coverage litigation. Continuously, we review ongoing insurance coverage available for a significant amount of the potential future asbestos-related claims and in the future could secure additional insurance coverage as deemed necessary. The study from the Company's actuary, based on data as of September 30, 2020, provided for a range of possible future liability from approximately $80.1 million to $131.7 million. The Company does not believe any amount within the range of potential outcomes represents a better estimate than another given the many factors and assumptions inherent in the projections and therefore the Company has recorded the liability at the actuarial central estimate of approximately $99.5 million as of December 31, 2020. In addition, the Company has recorded estimated insurance receivables of approximately $69.5 million as of December 31, 2020. The amounts recorded for the asbestos-related liability and the related insurance receivables are based on facts known at the time and a number of assumptions. However, projecting future events, such as the number of new claims to be filed each year, the length of time it takes to defend, resolve, or otherwise dispose of such claims, coverage issues among insurers and the continuing solvency of various insurance companies, as well as the numerous uncertainties surrounding asbestos litigation in the United States, could cause the actual liability and insurance recoveries for us to be higher or lower than those projected or recorded. Additionally, we have claims pending against certain insurers that, if resolved more favorably than reflected in the recorded receivables, would result in discrete gains in the applicable year. Changes recorded in the estimated liability and estimated insurance recovery based on projections of asbestos litigation and corresponding insurance coverage, result in the recognition of additional expense or income. For a discussion pertaining to the activity related to asbestos claims refer to Note 16. Warranty Accruals — Warranty obligations are based upon product failure rates, materials usage, service delivery costs, an analysis of all identified or expected claims and an estimate of the cost to resolve such claims. The estimates of expected claims are generally a factor of historical claims and known product issues. Warranty obligations based on these factors are adjusted based on historical sales trends for the preceding 24 months . Insurance Accruals — Insurance accruals are recorded for wholly or partially self-insured risks such as medical benefits and workers’ compensation and are based upon an analysis of our claim loss history, insurance deductibles, policy limits and other relevant factors that are updated annually and are included in accrued liabilities in our consolidated balance sheets. The estimates are based upon information received from actuaries, insurance company adjusters, independent claims administrators or other independent sources. Receivables from insurance carriers are estimated using our historical experience with insurance recovery rates and estimates of future recoveries, which include estimates of coverage and financial viability of our insurance carriers. Estimated receivables are included in accounts receivable, net and other assets, net, as applicable, in our consolidated balance sheets. Pension and Postretirement Obligations — Determination of pension and postretirement benefits obligations is based on estimates made by management in consultation with independent actuaries and investment advisors. Inherent in these valuations are assumptions including discount rates, expected rates of return on plan assets, retirement rates, mortality rates and rates of compensation increase and other factors all of which are reviewed annually and updated if necessary. Current market conditions, including changes in rates of return, interest rates and medical inflation rates, are considered in selecting these assumptions. Actuarial gains and losses and prior service costs are recognized in accumulated other comprehensive loss as they arise and we amortize these costs into net pension expense over the remaining expected service period. Property, Plant and Equipment and Depreciation — Property, plant and equipment are stated at historical cost, less accumulated depreciation. If asset retirement obligations exist, they are capitalized as part of the carrying amount of the asset and depreciated over the remaining useful life of the asset. The useful lives of leasehold improvements are the lesser of the remaining lease term or the useful life of the improvement. When assets are retired or otherwise disposed of, their costs and related accumulated depreciation are removed from the accounts and any resulting gains or losses are included in income from operations for the period. Depreciation is computed by the straight-line method based on the estimated useful lives of the depreciable assets, or in the case of assets under finance leases, over the related lease term. Generally, the estimated useful lives of the assets are: Buildings and improvements 10 to 40 years Machinery, equipment and tooling 3 to 14 years Software, furniture and fixtures and other 3 to 7 years Costs related to routine repairs and maintenance are expensed as incurred. Leases — We have operating and finance leases for certain manufacturing facilities, offices, service and quick response centers, machinery, equipment and automobiles. Our leases have remaining lease terms of up to 33 years. The terms and conditions of our leases may include options to extend or terminate the lease which are considered and included in the lease term when these options are reasonably certain of exercise. We determine if a contract is (or contains) a lease at inception by evaluating whether the contract conveys the right to control the use of an identified asset. For all classes of leased assets, we account for any non-lease components in the contract together with the related lease component in the same unit of account. For lease contracts containing more than one lease component, we allocate the contract consideration to each of the lease components on the basis of relative standalone prices in order to identify the lease payments for each lease component. Right-of-use ("ROU") assets and lease liabilities are recognized in our consolidated balance sheets at the commencement date based on the present value of remaining lease payments over the lease term. Additionally, ROU assets include any lease payments made at or before the commencement date, as well as any initial direct costs incurred, and are reduced by any lease incentives received. For a detailed discussion related to leases refer to Note 5. Internally Developed Software — We capitalize certain costs associated with the development of internal-use software. Generally, these costs are related to significant software development projects and are amortized over their estimated useful life, typically three three Intangible Assets — Intangible assets, excluding trademarks (which are considered to have an indefinite life), consist primarily of engineering drawings, patents, existing customer relationships, software, distribution networks and other items that are being amortized over their estimated useful lives generally ranging from four Valuation of Goodwill, Indefinite-Lived Intangible Assets and Other Long-Lived Assets — The value of goodwill and indefinite-lived intangible assets is tested for impairment as of December 31 each year or whenever events or circumstances indicate such assets may be impaired. The identification of our reporting units began at the operating segment level and considered whether components one level below the operating segment levels should be identified as reporting units for purpose of testing goodwill for impairment based on certain conditions. These conditions included, among other factors, (i) the extent to which a component represents a business and (ii) the aggregation of economically similar components within the operating segments and resulted in three reporting units. Other factors that were considered in determining whether the aggregation of components was appropriate included the similarity of the nature of the products and services, the nature of the production processes, the methods of distribution and the types of industries served. Accounting Standards Codification ("ASC") 350 allows an optional qualitative assessment, prior to a quantitative assessment test, to determine whether it is more likely than not that the fair value of a reporting unit exceeds its carrying amount. We generally do not attempt a qualitative assessment and proceed directly to the quantitative test. If the carrying value of a reporting unit exceeds its fair value, the goodwill of that reporting unit is impaired and an impairment loss is recorded equal to the excess of the carrying value over its fair value. We estimate the fair value of our reporting units based on an income approach, whereby we calculate the fair value of a reporting unit based on the present value of estimated future cash flows. A discounted cash flow analysis requires us to make various judgmental assumptions about future sales, operating margins, growth rates and discount rates, which are based on our budgets, business plans, economic projections, anticipated future cash flows and market participants. We did not record an impairment of goodwill in 2020, 2019 or 2018; however, the estimated fair value of our Pump reporting unit has reduced moderately during the year due to decreased broad-based capital spending resulting from the ongoing COVID-19 pandemic and to a lesser extent the heightened pricing pressure experienced in the oil and gas markets, both of which are anticipated to continue in the near to mid-term. The Pump reporting unit is a component of EPD reporting segment and is primarily focused on highly engineered custom and pre-configured pump products and systems. As of December 31, 2020, our Pump reporting unit had approximately $482.7 million of goodwill and an estimated fair value that exceeded its carrying value by approximately 46% as compared to approximately $468.8 million of goodwill and an estimated fair value that exceeded its carrying value by approximately 131% as of December 31, 2019. The key factors considered in determining the estimated fair value of our reporting units included the annual operating plan and forecasted operating results, successful execution of our current continuous improvement and identified strategic initiatives, a constant cost of capital, continued stabilization and mid to long-term improvement of the macro-economic conditions of the oil and gas market, and a relatively stable global gross domestic product. Although we have concluded that there is no impairment on the goodwill associated with our Pump reporting unit as of December 31, 2020, we will continue to closely monitor their performance and related market conditions for future indicators of potential impairment and reassess accordingly. We also considered our market capitalization in our evaluation of the fair value of our goodwill. Our market capitalization decreased as compared with 2019, however this did not indicate a potential impairment of our goodwill as of December 31, 2020. Impairment losses for indefinite-lived intangible assets are recognized whenever the estimated fair value is less than the carrying value. Fair values are calculated for trademarks using a "relief from royalty" method, which estimates the fair value of a trademark by determining the present value of estimated royalty payments that are avoided as a result of owning the trademark. This method includes judgmental assumptions about sales growth and discount rates that have a significant impact on the fair value and are substantially consistent with the assumptions used to determine the fair value of our reporting unit discussed above. We did not record a material impairment of our trademarks in 2020, 2019 or 2018. The recoverable value of other long-lived assets, including property, plant and equipment and finite-lived intangible assets, is reviewed when indicators of potential impairments are present. The recoverable value is based upon an assessment of the estimated future cash flows related to those assets, utilizing assumptions similar to those for goodwill. Additional considerations related to our long-lived assets include expected maintenance and improvements, changes in expected uses and ongoing operating performance and utilization. Deferred Loan Costs — Deferred loan costs, consisting of fees and other expenses associated with debt financing, are amortized over the term of the associated debt using the effective interest method. Additional amortization is recorded in periods where optional prepayments on debt are made. Fair Values of Financial Instruments — Our financial instruments are presented at fair value in our consolidated balance sheets, with the exception of our long-term debt. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied. Assets and liabilities recorded at fair value in our consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Hierarchical levels, as defined by ASC 820, "Fair Value Measurements and Disclosures," are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities. An asset or a liability’s categorization within the fair value hierarchy is based on the lowest level of significant input to its valuation. Hierarchical levels are as follows: Level I — Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level II — Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level III — Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Recurring fair value measurements are limited to investments in derivative instruments and certain equity securities. The fair value measurements of our derivative instruments are determined using models that maximize the use of the observable |
Revision to Previously Reported
Revision to Previously Reported Financial Information | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Revision to Previously Reported Financial Information | REVISION TO PREVIOUSLY REPORTED FINANCIAL INFORMATION In conjunction with our close process for the third quarter of 2020, we identified accounting errors related to the recognition of a liability for unasserted asbestos claims. The adjustments primarily relate to an incurred but not reported (“IBNR”) liability associated with unasserted asbestos claims, but also include adjustments related to the associated receivables for expected insurance proceeds for asbestos settlement and defense costs from insurance coverage and the recognition as an expense the related legal fees that were previously estimated to be recoverable from insurance carriers for which coverage is not currently sufficient following the recognition of the IBNR and to correct certain other previously identified immaterial misstatements. Prior periods not presented herein will be revised, as applicable, in future filings. The following table presents the impact of correcting the errors previously discussed on the affected line items of our consolidated balance sheet as of December 31, 2019: December 31, 2019 (Amounts in thousands) As Reported Adjustments As Revised Prepaid expenses and other 105,101 1,377 106,478 Total current assets 2,505,370 1,377 2,506,747 Property, plant and equipment, net of accumulated depreciation (1) 572,175 (8,611) 563,564 Other assets, net of allowance for expected credit losses (2) 227,185 25,869 253,054 Total assets 4,919,642 18,635 4,938,277 Contract liabilities (3) 216,541 4,554 221,095 Total current liabilities 1,112,888 4,554 1,117,442 Retirement obligations and other liabilities (4) 473,295 57,699 530,994 Retained earnings (5) 3,695,862 (43,618) 3,652,244 Total Flowserve Corporation shareholders’ equity 1,790,357 (43,618) 1,746,739 Total equity 1,815,959 (43,618) 1,772,341 Total liabilities and equity $ 4,919,642 $ 18,635 $ 4,938,277 _______________________________________ (1) Adjustment related to the misclassification of Software as a Service arrangements as property, plant and equipment rather than other assets, net, as prescribed by ASU 2018-15. (2) Adjustment related to the associated receivables for expected insurance proceeds for asbestos settlements and defense costs. (3) Adjustment related to one of our sites for correction in contract position caused by errors in estimated costs under the over time revenue recognition model. (4) Adjustment primarily relates to IBNR reserves associated with unasserted asbestos claims. (5) The adjustments to retained earnings represents the cumulative effect of the immaterial errors that were corrected in periods prior to and through December 31, 2019. The following table presents the impact of correcting the errors previously discussed on the affected line items of our consolidated statement of income for the year ended December 31, 2019: (Amounts in thousands) Year Ended December 31, 2019 As Reported Adjustments As Revised Sales (1) $ 3,944,850 $ (5,153) $ 3,939,697 Cost of sales (2,649,480) (874) (2,650,354) Gross profit 1,295,370 (6,027) — 1,289,343 Selling, general and administrative expense (2) (899,813) (13,390) (913,203) Operating income 406,040 (19,417) 386,623 Earnings before income taxes 341,850 (19,417) 322,433 Provision for income taxes (3) (80,070) 4,577 (75,493) Net earnings, including noncontrolling interests 261,780 (14,840) 246,940 Net earnings attributable to Flowserve Corporation $ 253,668 $ (14,840) $ 238,828 Net earnings per share attributable to Flowserve Corporation common shareholders: Basic $ 1.94 $ (0.12) $ 1.82 Diluted 1.93 (0.12) 1.81 ______________________________________ (1) Adjustment related to one of our sites related to errors in estimated costs under the over time revenue recognition model. (2) Adjustment primarily related to asbestos settlement and defense costs from insurance coverage and expense for related legal fees. (3) Adjustment related to tax impacts of the matters described in notes (1) and (2), above. The following table presents the impact of correcting the errors previously discussed on the affected line items of our consolidated statement of income for the year ended December 31, 2018: (Amounts in thousands) Year Ended December 31, 2018 As Reported Adjustments As Revised Sales (1) $ 3,832,666 $ 3,033 $ 3,835,699 Gross profit 1,187,836 3,033 — 1,190,869 Selling, general and administrative expense (2) (943,714) (22,870) (966,584) Operating income 247,538 (19,837) 227,701 Earnings before income taxes 176,274 (19,837) 156,437 Provision for income taxes (3) (51,224) 4,674 (46,550) Net earnings, including noncontrolling interests 125,050 (15,163) 109,887 Net earnings attributable to Flowserve Corporation $ 119,671 $ (15,163) $ 104,508 Net earnings per share attributable to Flowserve Corporation common shareholders: Basic $ 0.91 $ (0.11) $ 0.80 Diluted 0.91 (0.11) 0.80 _______________________________________ (1) Adjustment related to one of our sites related to errors in estimated costs under the over time revenue recognition model. (2) Adjustment primarily related to asbestos settlement and defense costs from insurance coverage and expense for related legal fees and broad-based annual incentive compensation. (3) Adjustment related to tax impacts of the matters described in notes (1) and (2), above. The consolidated statements of shareholders' equity and the consolidated statements of comprehensive income for the periods ending December 31, 2020, 2019 and 2018 have also been revised to reflect the impacts to net earnings. The impact of errors arising in periods commencing prior to January 1, 2018 has been reflected as a reduction to opening retained earnings in the amount of $28.8 million in the consolidated statement of shareholders' equity. Except for as described below in (1), the effect of the adjustments to the consolidated statements of cash flows for the period ended December 31, 2019 primarily related to net earnings, including noncontrolling interests, for the change in net earnings in the table above and were offset primarily by impacts to changes in operating assets and liabilities. The following table presents the impact of correcting the errors previously discussed on the affected line items of our consolidated statement of cash flows for the years ended December 31, 2019 and 2018 : Year Ended December 31, 2019 (Amounts in thousands) As Reported Adjustments As Revised Net cash flows provided (used) by operating activities (1) $ 312,741 $ 11,356 $ 324,097 Net cash flows provided (used) by investing activities (1) (23,837) (9,546) (33,383) Net cash flows provided (used) by financing activities (229,654) (1,810) (231,464) Cash and cash equivalents at end of period (1) 670,980 — 670,980 _______________________________________ (1) Primarily related to adjustments resulting from the misclassification of Software as a Service arrangements as property, plant and equipment rather than other assets, net, as prescribed by ASU 2018-15, and adjustments related to our international operations’ exposure to fluctuations in foreign currency exchange rates, resulting from our Argentinian subsidiary's change in using the U.S. dollar as our functional currency in Argentina. The effects of the prior period revisions on the consolidated statements of cash flows for the year ended December 31, 2018 were primarily to the change in net earnings, as well as the changes in net cash flows provided (used) by operating activities, limited to prepaid expenses and other assets, net, accounts payable, accrued liabilities and income taxes payable, retirement obligations and other and deferred tax movements. Accordingly, there were no changes to any subtotals within the 2018 consolidated statement of cash flows. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION The majority of our revenues relate to customer orders that typically contain a single commitment of goods or services which have lead times under a year. Longer lead time, more complex contracts with our customers typically have multiple commitments of goods and services, including any combination of designing, developing, manufacturing, modifying, installing and commissioning of flow management equipment and providing services and parts related to the performance of such products. Control transfers over time when the customer is able to direct the use of and obtain substantially all of the benefits of our work as we perform. Our primary method for recognizing revenue over time is the percentage of completion ("POC") method. Revenue from products and services transferred to customers over time accounted for approximately 22%, 19% and 22% of total revenue for the years ended December 31, 2020, 2019 and 2018, respectively. If control does not transfer over time, then control transfers at a point in time. We recognize revenue at a point in time at the level of each performance obligation based on the evaluation of certain indicators of control transfer, such as title transfer, risk of loss transfer, customer acceptance and physical possession. Revenue from products and services transferred to customers at a point in time accounted for approximately 78%, 81% and 78% of total revenue for the years ended December 31, 2020, 2019 and 2018, respectively. Disaggregated Revenue We conduct our operations through two business segments based on the type of product and how we manage the business: • Flowserve Pump Division ("FPD") for custom, highly-engineered pumps, pre-configured industrial pumps, pump systems, mechanical seals, auxiliary systems and replacement parts and related services; and • Flow Control Division ("FCD") for engineered and industrial valves, control valves, actuators and controls and related services. Our revenue sources are derived from our original equipment manufacturing and our aftermarket sales and services. Our original equipment revenues are generally related to originally designed, manufactured, distributed and installed equipment that can range from pre-configured, short-cycle products to more customized, highly-engineered equipment ("Original Equipment"). Our aftermarket sales and services are derived from sales of replacement equipment, as well as maintenance, advanced diagnostic, repair and retrofitting services ("Aftermarket"). Each of our two business segments generate Original Equipment and Aftermarket revenues. The following table presents our customer revenues disaggregated by revenue source: December 31, 2020 (Amounts in thousands) FPD FCD Total Original Equipment $ 1,091,906 $ 808,585 $ 1,900,491 Aftermarket 1,581,799 245,844 1,827,643 $ 2,673,705 $ 1,054,429 $ 3,728,134 December 31, 2019 (Amounts in thousands) FPD FCD Total Original Equipment $ 994,719 $ 967,271 $ 1,961,990 Aftermarket 1,709,726 267,981 1,977,707 $ 2,704,445 $ 1,235,252 $ 3,939,697 December 31, 2018 (Amounts in thousands) FPD FCD Total Original Equipment $ 992,162 $ 946,926 $ 1,939,088 Aftermarket 1,628,326 268,285 1,896,611 $ 2,620,488 $ 1,215,211 $ 3,835,699 Our customer sales are diversified geographically. The following table presents our revenues disaggregated by geography, based on the shipping addresses of our customers: December 31, 2020 (Amounts in thousands) FPD FCD Total North America(1) $ 1,039,285 $ 429,572 $ 1,468,857 Latin America(1) 191,517 26,393 217,910 Middle East and Africa 359,403 110,539 469,942 Asia Pacific 537,792 270,238 808,030 Europe 545,708 217,687 763,395 $ 2,673,705 $ 1,054,429 $ 3,728,134 December 31, 2019 (Amounts in thousands) FPD FCD Total North America(1) $ 1,085,627 $ 542,182 $ 1,627,809 Latin America(1) 202,247 28,899 231,146 Middle East and Africa 355,937 98,959 454,896 Asia Pacific 499,932 315,886 815,818 Europe 560,702 249,326 810,028 $ 2,704,445 $ 1,235,252 $ 3,939,697 December 31, 2018 (Amounts in thousands) FPD FCD Total North America(1) $ 1,037,637 $ 541,378 $ 1,579,015 Latin America(1) 219,376 22,405 241,781 Middle East and Africa 329,484 138,240 467,724 Asia Pacific 502,559 281,080 783,639 Europe 531,432 232,108 763,540 $ 2,620,488 $ 1,215,211 $ 3,835,699 _____________________________________ (1) North America represents United States and Canada; Latin America includes Mexico. On December 31, 2020, the aggregate transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations related to contracts having an original expected duration in excess of one year was approximately $541 million. We estimate recognition of approximately $412 million of this amount as revenue in 2021 and an additional $129 million in 2022 and thereafter. Contract Balances We receive payment from customers based on a contractual billing schedule and specific performance requirements as established in our contracts. We record billings as accounts receivable when an unconditional right to consideration exists. A contract asset represents revenue recognized in advance of our right to bill the customer under the terms of a contract. A contract liability represents our contractual billings in advance of revenue recognized for a contract. The following table presents opening and closing balances of contract assets and contract liabilities, current and long-term, for the years ended December 31, 2020 and 2019: ( Amounts in thousands) Contract Assets, net (Current) Long-term Contract Assets, net(1) Contract Liabilities (Current) Long-term Contract Liabilities(2) Balance — January 1, 2019 $ 229,297 $ 10,967 $ 201,702 $ 1,370 Revenue recognized that was included in contract liabilities at the beginning of the period — — (125,257) — Increase due to revenue recognized in the period in excess of billings 835,147 — — — Increase due to billings arising during the period in excess of revenue recognized — — 135,679 290 Amounts transferred from contract assets to receivables (785,279) (1,747) — — Currency effects and other, net (6,251) 60 8,971 (8) Balance — December 31, 2019 $ 272,914 $ 9,280 $ 221,095 $ 1,652 Revenue recognized that was included in contract liabilities at the beginning of the period — — (180,522) — Increase due to revenue recognized in the period in excess of billings 925,244 — — — Increase due to billings arising during the period in excess of revenue recognized — — 140,391 — Amounts transferred from contract assets to receivables (917,885) (1,666) — — Currency effects and other, net (2,539) (6,475) 13,263 (830) Balance — December 31, 2020 $ 277,734 $ 1,139 $ 194,227 $ 822 _____________________________________ (1) Included in other assets, net. |
Dispositions
Dispositions | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Dispositions | DISPOSITIONS FPD Business Divestiture On June 29, 2018, pursuant to a plan of sale approved by management, we executed an agreement to divest two FPD locations and associated product lines, including the related assets and liabilities. This transaction did not meet the criteria for classification of assets held for sale as of June 30, 2018 due to a contingency that could have potentially impacted the final terms and/or timing of the divestiture. The sale transaction was completed on August 9, 2018. During the twelve months ended December 31, 2018, we recorded a pre-tax charge of $25.1 million, including a pre-tax charge of $17.4 million in the second quarter of 2018 and a loss on sale of the business of $7.7 million in the third quarter of 2018. The second quarter of 2018 pre-tax charge related to write-downs of inventory and long-lived assets to their estimated fair value, of which $7.7 million was recorded in COS and $9.7 million was recorded in SG&A. The third quarter of 2018 pre-tax charge primarily related to working capital changes since the second quarter of 2018 and net cash transferred at the closing date of $3.7 million. The sale included a manufacturing facility in Germany and a related assembly facility in France. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019 are as follows: FPD FCD Total (Amounts in thousands) Balance as of December 31, 2018 $ 790,139 $ 407,501 $ 1,197,640 Currency translation and other (3,509) (1,121) (4,630) Balance as of December 31, 2019 $ 786,630 $ 406,380 $ 1,193,010 Currency translation and other 18,425 13,451 31,876 Balance as of December 31, 2020 $ 805,055 $ 419,831 $ 1,224,886 The following table provides information about our intangible assets for the years ended December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Useful Ending Accumulated Ending Accumulated (Amounts in thousands, except years) Finite-lived intangible assets: Engineering drawings(1) 10-22 $ 90,638 $ (83,620) $ 89,490 $ (78,854) Existing customer relationships(2) 5-10 85,214 (62,796) 81,844 (53,468) Patents 9-16 27,015 (27,015) 26,132 (26,132) Other 4-40 93,923 (43,633) 92,920 (40,149) $ 296,790 $ (217,064) $ 290,386 $ (198,603) Indefinite-lived intangible assets(3) $ 90,355 $ (1,585) $ 90,607 $ (1,585) ____________________________________ (1) Engineering drawings represent the estimated fair value associated with specific acquired product and component schematics. (2) Existing customer relationships acquired prior to 2011 had a useful life of five years . (3) Accumulated amortization for indefinite-lived intangible assets relates to amounts recorded prior to the implementation date of guidance issued in ASC 350. The following schedule outlines actual amortization expense recognized during 2020 and an estimate of future amortization based upon the finite-lived intangible assets owned at December 31, 2020: Amortization (Amounts in thousands) Actual for year ended December 31, 2020 $ 13,645 Estimated for year ended December 31, 2021 14,313 Estimated for year ended December 31, 2022 12,298 Estimated for year ended December 31, 2023 9,283 Estimated for year ended December 31, 2024 4,286 Estimated for year ended December 31, 2025 2,338 Thereafter 37,208 Amortization expense for finite-lived intangible assets was $13.8 million in 2019 and $14.1 million in 2018. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories, net consisted of the following: December 31, 2020 2019 (Amounts in thousands) Raw materials $ 321,600 $ 328,080 Work in process 210,174 192,993 Finished goods 221,532 218,408 Less: Excess and obsolete reserve (86,078) (78,644) Inventories, net $ 667,228 $ 660,837 During 2020, 2019 and 2018, we recognized expenses of $14.9 million , $17.1 million and $16.2 million, respectively, for excess and obsolete inventory. These expenses are included in COS in our consolidated statements of income. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | LEASES We have operating and finance leases for certain manufacturing facilities, offices, service and quick response centers, machinery, equipment and automobiles. Our leases have remaining lease terms of up to 33 years . The terms and conditions of our leases may include options to extend or terminate the lease which are considered and included in the lease term when these options are reasonably certain of exercise. We determine if a contract is (or contains) a lease at inception by evaluating whether the contract conveys the right to control the use of an identified asset. For all classes of leased assets, we have elected the practical expedient to account for any non-lease components in the contract together with the related lease component in the same unit of account. For lease contracts containing more than one lease component, we allocate the contract consideration to each of the lease components on the basis of relative standalone prices in order to identify the lease payments for each lease component. ROU assets and lease liabilities are recognized in our consolidated balance sheets at the commencement date based on the present value of remaining lease payments over the lease term. Additionally, ROU assets include any lease payments made at or before the commencement date, as well as any initial direct costs incurred, and are reduced by any lease incentives received. As most of our operating leases do not provide an implicit rate, we apply our incremental country-specific borrowing rate to determine the present value of remaining lease payments. Our incremental borrowing country-specific rate is determined based on information available at the commencement date of the lease. Operating leases are included in operating lease right-of-use assets, net and operating lease liabilities in our consolidated balance sheets. Finance leases are included in property plant and equipment, debt due within one year and long-term debt due after one year in our consolidated balance sheets. For all classes of leased assets, we have applied an accounting policy election to exclude short-term leases from recognition in our consolidated balance sheets. A short-term lease has a lease term of 12 months or less at the commencement date and does not include a purchase option that is reasonably certain of exercise. We recognize short-term lease expense in our consolidated income statements on a straight-line basis over the lease term. Our short-term lease expense and short-term lease commitments as of December 31, 2020 are immaterial . We have certain lease contracts with terms and conditions that provide for variability in the payment amount based on changes in facts or circumstances occurring after the commencement date. These variable lease payments are recognized in our consolidated income statements as the obligation is incurred. We have certain lease contracts where we provide a guarantee to the lessor that the value of an underlying asset will be at least a specified amount at the end of the lease. Estimated amounts expected to be paid for residual value guarantees are included in lease liabilities and ROU assets. We had $0.4 million and $34.7 million of legally binding minimum lease payments for operating leases signed but not yet commenced as of December 31, 2020 and 2019. We did not have material subleases, le ases that imposed significant restrictions or covenants, material related party leases or sale-leaseback arrangements. Other information related to our leases is as follows: December 31, (Amounts in thousands) 2020 2019 Finance Leases: ROU assets recorded under finance leases $ 27,624 $ 19,606 Accumulated depreciation associated with finance leases (9,463) (7,551) Total finance leases ROU assets, net(1) $ 18,161 $ 12,055 Total finance leases liabilities(2) $ 18,287 $ 11,788 The costs components of operating and finance leases are as follows: December 31, (Amounts in thousands) 2020 2019 Operating Lease Costs: Fixed lease expense(3) $ 57,050 $ 57,450 Variable lease expense(3) 7,299 6,492 Total operating lease expense $ 64,349 $ 63,942 Finance Lease Costs: Depreciation of finance lease ROU assets(3) $ 5,392 $ 4,729 Interest on lease liabilities(4) 646 352 Total finance lease expense $ 6,038 $ 5,081 _____________________ (1) Included in property plant and equipment, net (2) Included in debt due within one year and long-term debt due after one year, accordingly (3) Included in cost of sales and selling, general and administrative expense, accordingly (4) Included in interest expense Supplemental cash flows information related to our leases is as follows: December 31, (Amounts in thousands, except lease term and discount rate) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases(1) $ 66,478 $ 64,725 Financing cash flows from finance leases(2) 4,704 4,465 ROU assets obtained in exchange for lease obligations: Operating leases $ 62,425 $ 14,569 Finance leases 13,124 10,615 Weighted average remaining lease term (in years) Operating leases 9 years 9 years Finance leases 7 years 3 years Weighted average discount rate (percent) Operating leases 4.2 % 4.5 % Finance leases 3.5 % 3.6 % _____________________ (1) Included in our consolidated statement of cash flows, operating activities, prepaid expenses and other assets, net and retirement obligations and other (2) Included in our consolidated statement of cash flows, financing activities, payments under other financing arrangements Future undiscounted lease payments under operating and finance leases as of December 31, 2020, were as follows (amounts in thousands): Year ending December 31, Operating Finance Leases 2021 42,570 5,539 2022 36,596 4,522 2023 30,458 2,996 2024 26,334 1,521 2025 20,977 939 Thereafter 94,991 5,265 Total future minimum lease payments $ 251,926 $ 20,782 Less: Imputed interest (40,690) (2,495) Total $ 211,236 $ 18,287 Other current liabilities $ 34,990 $ — Operating lease liabilities 176,246 — Debt due within one year — 5,354 Long-term debt due after one year — 12,933 Total $ 211,236 $ 18,287 |
Leases | LEASES We have operating and finance leases for certain manufacturing facilities, offices, service and quick response centers, machinery, equipment and automobiles. Our leases have remaining lease terms of up to 33 years . The terms and conditions of our leases may include options to extend or terminate the lease which are considered and included in the lease term when these options are reasonably certain of exercise. We determine if a contract is (or contains) a lease at inception by evaluating whether the contract conveys the right to control the use of an identified asset. For all classes of leased assets, we have elected the practical expedient to account for any non-lease components in the contract together with the related lease component in the same unit of account. For lease contracts containing more than one lease component, we allocate the contract consideration to each of the lease components on the basis of relative standalone prices in order to identify the lease payments for each lease component. ROU assets and lease liabilities are recognized in our consolidated balance sheets at the commencement date based on the present value of remaining lease payments over the lease term. Additionally, ROU assets include any lease payments made at or before the commencement date, as well as any initial direct costs incurred, and are reduced by any lease incentives received. As most of our operating leases do not provide an implicit rate, we apply our incremental country-specific borrowing rate to determine the present value of remaining lease payments. Our incremental borrowing country-specific rate is determined based on information available at the commencement date of the lease. Operating leases are included in operating lease right-of-use assets, net and operating lease liabilities in our consolidated balance sheets. Finance leases are included in property plant and equipment, debt due within one year and long-term debt due after one year in our consolidated balance sheets. For all classes of leased assets, we have applied an accounting policy election to exclude short-term leases from recognition in our consolidated balance sheets. A short-term lease has a lease term of 12 months or less at the commencement date and does not include a purchase option that is reasonably certain of exercise. We recognize short-term lease expense in our consolidated income statements on a straight-line basis over the lease term. Our short-term lease expense and short-term lease commitments as of December 31, 2020 are immaterial . We have certain lease contracts with terms and conditions that provide for variability in the payment amount based on changes in facts or circumstances occurring after the commencement date. These variable lease payments are recognized in our consolidated income statements as the obligation is incurred. We have certain lease contracts where we provide a guarantee to the lessor that the value of an underlying asset will be at least a specified amount at the end of the lease. Estimated amounts expected to be paid for residual value guarantees are included in lease liabilities and ROU assets. We had $0.4 million and $34.7 million of legally binding minimum lease payments for operating leases signed but not yet commenced as of December 31, 2020 and 2019. We did not have material subleases, le ases that imposed significant restrictions or covenants, material related party leases or sale-leaseback arrangements. Other information related to our leases is as follows: December 31, (Amounts in thousands) 2020 2019 Finance Leases: ROU assets recorded under finance leases $ 27,624 $ 19,606 Accumulated depreciation associated with finance leases (9,463) (7,551) Total finance leases ROU assets, net(1) $ 18,161 $ 12,055 Total finance leases liabilities(2) $ 18,287 $ 11,788 The costs components of operating and finance leases are as follows: December 31, (Amounts in thousands) 2020 2019 Operating Lease Costs: Fixed lease expense(3) $ 57,050 $ 57,450 Variable lease expense(3) 7,299 6,492 Total operating lease expense $ 64,349 $ 63,942 Finance Lease Costs: Depreciation of finance lease ROU assets(3) $ 5,392 $ 4,729 Interest on lease liabilities(4) 646 352 Total finance lease expense $ 6,038 $ 5,081 _____________________ (1) Included in property plant and equipment, net (2) Included in debt due within one year and long-term debt due after one year, accordingly (3) Included in cost of sales and selling, general and administrative expense, accordingly (4) Included in interest expense Supplemental cash flows information related to our leases is as follows: December 31, (Amounts in thousands, except lease term and discount rate) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases(1) $ 66,478 $ 64,725 Financing cash flows from finance leases(2) 4,704 4,465 ROU assets obtained in exchange for lease obligations: Operating leases $ 62,425 $ 14,569 Finance leases 13,124 10,615 Weighted average remaining lease term (in years) Operating leases 9 years 9 years Finance leases 7 years 3 years Weighted average discount rate (percent) Operating leases 4.2 % 4.5 % Finance leases 3.5 % 3.6 % _____________________ (1) Included in our consolidated statement of cash flows, operating activities, prepaid expenses and other assets, net and retirement obligations and other (2) Included in our consolidated statement of cash flows, financing activities, payments under other financing arrangements Future undiscounted lease payments under operating and finance leases as of December 31, 2020, were as follows (amounts in thousands): Year ending December 31, Operating Finance Leases 2021 42,570 5,539 2022 36,596 4,522 2023 30,458 2,996 2024 26,334 1,521 2025 20,977 939 Thereafter 94,991 5,265 Total future minimum lease payments $ 251,926 $ 20,782 Less: Imputed interest (40,690) (2,495) Total $ 211,236 $ 18,287 Other current liabilities $ 34,990 $ — Operating lease liabilities 176,246 — Debt due within one year — 5,354 Long-term debt due after one year — 12,933 Total $ 211,236 $ 18,287 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | STOCK-BASED COMPENSATION PLANS Effective January 1, 2020, our shareholders approved the Flowserve Corporation 2020 Long-Term Incentive Plan (“2020 Plan”). The 2020 Plan replaces and supersedes the Flowserve Corporation Equity and Incentive Compensation Plan ("2010 Plan") in its entirety. The 2020 Plan authorizes the issuance of 12,500,000 shares of our common stock in the form of restricted shares, restricted share units and performance-based units (collectively referred to as "Restricted Shares"), incentive stock options, non-statutory stock options, stock appreciation rights and bonus stock, in addition to any shares available for issuance or subject to forfeiture under the 2010 Plan as of its expiration on December 31, 2019. Of the shares of common stock authorized under the 2020 Plan and remaining shares under the 2010 Plan, 13,606,725 were available for issuance as of December 31, 2020. Restricted Shares primarily vest over a three year period. Restricted Shares granted to employees who retire and have achieved at least 55 years of age and 10 years of service to continue to vest over the original vesting period ("55/10 Provision"). Stock Options — Options granted to officers, other employees and directors allow for the purchase of common shares at the market value of our stock on the date the options are granted. Options generally become exercisable after three years. Options generally expire ten years from the date of the grant or within a short period of time following the termination of employment or cessation of services by an option holder. As of December 31, 2020, 114,943 stock options were outstanding and exercisable, with a grant date fair value of $2.0 million recognized over three years and a weighted average exercise price of $48.63. As of December 31, 2020, compensation associated with these stock options was fully earned. Using the Black-Scholes option pricing model to estimate the fair value of each option award, as of December 31, 2020 the total fair value of stock options vested was $2.0 million. No stock option were exercisable during the years ended December 31, 2019 and 2018. No stock options were granted, canceled or vested during years ended December 31, 2020, 2019 or 2018. T he weighted average remaining contractual life of options outstanding at December 31, 2020, 2019 and 2018 was 6.3 years, 7.3 years and 8.3 years, respectively. Restricted Shares — Generally, the restrictions on Restricted Shares do not expire for a minimum of one year and a maximum of three years, and shares are subject to forfeiture during the restriction period. Most typically, Restricted Share grants have staggered vesting periods over one Awards of Restricted Shares are valued at the closing market price of our common stock on the date of grant. The unearned compensation is amortized to compensation expense over the vesting period of the Restricted Shares, except for awards related to the 55/10 Provision which are expensed when granted. As of December 31, 2020 and 2019, we had $18.7 million and $23.4 million, respectively, of unearned compensation cost related to unvested Restricted Shares, which is expected to be recognized over a weighted-average period of approximately one year . The total fair value of Restricted Shares vested during the years ended December 31, 2020, 2019 and 2018 was $26.4 million , $16.8 million and $14.3 million, respectively. We recorded stock-based compensation for Restricted Shares as follows: Year Ended December 31, 2020 2019 2018 (Amounts in millions) Stock-based compensation expense $ 27.3 $ 23.9 $ 19.9 Related income tax benefit (6.2) (5.4) (4.5) Net stock-based compensation expense $ 21.1 $ 18.5 $ 15.4 The following table summarizes information regarding Restricted Shares: Year Ended December 31, 2020 Shares Weighted Average Number of unvested Restricted Shares: Outstanding — beginning of year 1,690,600 $ 46.71 Granted 730,065 46.56 Vested (587,301) 45.02 Canceled (459,707) 48.47 Outstanding — ending of year 1,373,657 $ 46.76 Unvested Restricted Shares outstanding as of December 31, 2020, includes approximately 539,000 units with performance-based vesting provisions. Performance-based units are issuable in common stock and vest upon the achievement of pre-defined performance targets. Performance-based units have performance targets based on our average return on invested capital and our total shareholder return ("TSR") over a three-year period. Most unvested units were granted in three annual grants since January 1, 2018 and have a vesting percentage between 0% and 200% depending on the achievement of the specific performance targets. Except for shares granted under the 55/10 Provision, compensation expense is recognized ratably over a cliff-vesting period of 36 months, based on the fair value of our common stock on the date of grant, as adjusted for actual forfeitures. During the performance period, earned and unearned c ompensation expense is adjusted based on changes in the expected achievement of the pe rformance targets for all performance-based units granted except for the TSR-based units. Vesting provisions range from 0 to approximately 1,078,000 shares based on performance targets. As of December 31, 2020, we estimate vesting of approximately 537,000 shares based on expecte d achievement of performance targets. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | DERIVATIVES AND HEDGING ACTIVITIES Our risk management and foreign currency derivatives and hedging policy specifies the conditions under which we may enter into derivative contracts. See Note 1 for additional information on our purpose for entering into derivatives and our overall risk management strategies. We enter into foreign exchange forward contracts to hedge our cash flow risks associated with transactions denominated in currencies other than the local currency of the operation engaging in the transaction. Foreign exchange contracts had notional values of $388.1 million and $398.5 million at December 31, 2020 and 2019, respectively. At December 31, 2020, the length of foreign exchange contracts currently in place ranged from 15 days to 20 months. We are exposed to risk from credit-related losses resulting from nonperformance by counterparties to our financial instruments. We perform credit evaluations of our counterparties under forward exchange contracts and expect all counterparties to meet their obligations. We have not experienced credit losses from our counterparties. The fair values of foreign exchange contracts are summarized below: Year Ended December 31, 2020 2019 (Amounts in thousands) Current derivative assets $ 2,857 $ 892 Noncurrent derivative assets 249 15 Current derivative liabilities 682 3,418 Noncurrent derivative liabilities — 8 Current and noncurrent derivative assets are reported in our consolidated balance sheets in prepaid expenses and other and other assets, net, respectively. Current and noncurrent derivative liabilities are reported in our consolidated balance sheets in accrued liabilities and retirement obligations and other liabilities, respectively. The impact of net changes in the fair values of foreign exchange contracts are summarized below: Year Ended December 31, 2020 2019 2018 (Amounts in thousands) Loss recognized in income $ (10,294) $ (6,495) $ (3,154) Gains and losses recognized in our consolidated statements of income for foreign exchange contracts are classified as other income (expense), net. On September 22, 2020, as a means of managing the volatility of foreign currency exposure with the Euro/U.S. dollar exchange rate, we entered into a cross-currency swap ("Swap") associated with our Euro investment in certain of our international subsidiaries and was designated as a net investment hedge. We exclude the interest accruals on the swap from the assessment of hedge effectiveness and recognize the interest accruals in earnings within interest expense. For each reporting period, the change in the fair value of the swap attributable to changes in the spot rate and differences between the change in the fair value of the excluded components and the amounts recognized in earnings under the swap accrual process are reported in accumulated other comprehensive loss on our consolidated balance sheet. As of December 31, 2020 , the notional value of the Swap wa s €163.2 million and has an early termination date of September 2025 . The swap is included in retirement obligations and other liabilities in our consolidated balance sheet as of December 31, 2020, with a fair value of $18.1 million and is classified as Level II under the fair value hierarchy. For the period ending December 31, 2020, an interest accrual of $(0.6) million was recognized as other income (expense), net, in our consolidated statements of income. The cumulative net investment hedge loss, net of deferred taxes, under cross-currency swap recorded in accumulated other comprehensive loss ("AOCL") on our consolidated balance sheet are summarized below: Year Ended December 31, 2020 2019 2018 (Amounts in thousands) Loss recognized in AOCL $ (13,836) $ — $ — In March 2015, we designated €255.7 million of our 1.25% EUR Senior Notes due 2022 ("2022 Euro Senior Notes") d iscussed in Note 13 as a net investment hedge of our Euro investment in certain of our international subsidiaries. On September 22, 2020, we increased the designated hedged value on the 2022 Euro Senior Notes to €336.3 million, which reflects the remaining balance of the 2022 Euro Senior Notes following the closing of the previously announced tender offer for the 2022 Euro Senior Notes on the same date. For each reporting period, the change in the carrying value due to the remeasurement of the effective portion is reported in accumulated other comprehensive loss on our consolidated balance sheet and the remaining change in the carrying value of the ineffective portion, if any, is recognized in other income (expense), net in our consolidated statement of income. The cumulative impact recorded in AOCL on our consolidated balance sheet from the change in carrying value due to the remeasurement of the effective portion of the net investment hedge are summarized below: Year Ended December 31, 2020 2019 2018 (Amounts in thousands) Loss recorded in AOCL (34,973) (12,084) (17,164) We use the spot method to measure the effectiveness of both of the net investment hedges and evaluate the effectiveness on a prospective basis at the beginning of each quarter. We did not record any ineffectiveness for the years ended December 31, 2020, 2019 or 2018. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS Our financial instruments are presented at fair value in our consolidated balance sheets. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied. Assets and liabilities recorded at fair value in our consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Recurring fair value measurements are limited to investments in derivative instruments and some equity securities. The fair value measurements of our derivative instruments are determined using models that maximize the use of the observable market inputs including interest rate curves and both forward and spot prices for currencies, and are classified as Level II under the fair value hierarchy. The fair values of our derivatives are included above in Note 9. The fair value measurements of our investments in equity securities are determined using quoted market prices and are classified as Level I. The fair values of our investments in equity securities, and changes thereto, are immaterial to our consolidated financial position and results of operations. The carrying value of our debt is included in Note 13 and, except for the Senior Notes, approximates fair value. The estimated fair value of the Senior Notes is based on Level I quoted market rates. The estimated fair value of our Senior Notes at December 31, 2020 was $1,778.4 million compared to the carrying value of $1,701.5 million. Th e carrying amounts of our other financial instruments (i.e., cash and cash equivalents, accounts receivable, net and accounts payable) approximated fair value due to their short-term nature at December 31, 2020 and December 31, 2019. |
Details of Certain Consolidated
Details of Certain Consolidated Balance Sheet Captions | 12 Months Ended |
Dec. 31, 2020 | |
Details of Certain Consolidated Balance Sheet Captions [Abstract] | |
Details of Certain Consolidated Balance Sheet Captions | DETAILS OF CERTAIN CONSOLIDATED BALANCE SHEET CAPTIONS The following tables present financial information of certain consolidated balance sheet captions. Accounts Receivable, net — Accounts receivable, net were: December 31, 2020 2019 (Amounts in thousands) Trade accounts receivables $ 808,459 $ 830,919 Less: allowance for doubtful accounts (59,280) (47,269) Other short-term receivables 20,179 18,031 Less: allowance for doubtful accounts (15,896) (6,143) Accounts receivable, net $ 753,462 $ 795,538 Property, Plant and Equipment, net — Property, plant and equipment, net were: December 31, 2020 2019 (Amounts in thousands) Land $ 65,894 $ 64,778 Buildings and improvements 446,008 419,454 Machinery, equipment and tooling 699,256 666,376 Software, furniture and fixtures and other 439,063 427,866 Gross property, plant and equipment 1,650,221 1,578,474 Less: accumulated depreciation (1,093,348) (1,014,910) Property, plant and equipment, net $ 556,873 $ 563,564 Accrued Liabilities — Accrued liabilities were: December 31, 2020 2019 (Amounts in thousands) Wages, compensation and other benefits $ 225,133 $ 192,354 Commissions and royalties 22,847 23,027 Warranty costs and late delivery penalties 27,757 30,625 Sales and use tax 29,067 18,146 Income tax 31,378 20,018 Other 127,040 117,215 Accrued liabilities $ 463,222 $ 401,385 "Other" accrued liabilities include professional fees, lease obligations, insurance, interest, freight, accrued cash dividends payable, legal and environmental matters, derivative liabilities, restructuring reserves and other items, none of which individually exceed 5% of current liabilities. Retirement Obligations and Other Liabilities — Retirement obligations and other liabilities were: December 31, 2020 2019 (Amounts in thousands) Pension and postretirement benefits $ 225,994 $ 199,603 Deferred taxes 84,345 149,633 Operating lease liabilities 176,246 151,523 Legal and environmental 101,203 99,744 Uncertain tax positions and other tax liabilities 50,259 42,086 Other 54,286 39,928 Retirement obligations and other liabilities $ 692,333 $ 682,517 |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | EQUITY METHOD INVESTMENTS We occasionally enter into joint venture arrangements with local country partners as our preferred means of entry into countries where barriers to entry may exist. Similar to our consolidated subsidiaries, these unconsolidated joint ventures generally operate within our primary businesses of designing, manufacturing, assembling and distributing fluid motion and control products and services. We have agreements with certain of these joint ventures that restrict us from otherwise entering the respective market and certain joint ventures produce and/or sell our products as part of their broader product offering. Net earnings from investments in unconsolidated joint ventures is reported in net earnings from affiliates in our consolidated statements of income. Given the integrated role of the unconsolidated joint ventures in our business, net earnings from affiliates is presented as a component of operating income. As of December 31, 2020, we had investments in six joint ventures, one located in each of Chile, China, India, Saudi Arabia, South Korea and the United Arab Emirates that were accounted for using the equity method and are immaterial for disclosure purposes. |
Debt and Finance Lease Obligati
Debt and Finance Lease Obligations | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Finance Lease Obligations | DEBT AND FINANCE LEASE OBLIGATIONS Debt, including finance lease obligations, consisted of: December 31, 2020 2019 (Amounts in thousands) 1.25% EUR Senior Notes due March 17, 2022, net of unamortized discount and debt issuance costs of $1,070 and $2,653 at December 31, 2020 and 2019, respectively $ 410,243 $ 557,847 3.50% USD Senior Notes due September 15, 2022, net of unamortized discount and debt issuance costs of $1,235 and $1,924 at December 31, 2020 and 2019, respectively 498,765 498,076 4.00% USD Senior Notes due November 15, 2023, net of unamortized discount and debt issuance costs of $1,345 and $1,777 at December 31, 2020 and 2019, respectively 298,655 298,223 3.50% USD Senior Notes due October 1, 2030, net of unamortized discount and debt issuance costs of $6,147 o f December 31, 2020 493,853 — Finance lease obligations and other borrowings 25,390 23,103 Debt and finance lease obligations 1,726,906 1,377,249 Less amounts due within one year 8,995 11,272 Total debt due after one year $ 1,717,911 $ 1,365,977 Scheduled maturities of our Senior Notes and other debt, are (amounts in thousands): 2021 $ 8,995 2022 925,403 2023 298,655 Thereafter 493,853 Total $ 1,726,906 Senior Notes On September 14, 2020, we completed a public offering of $500.0 million in aggregate principal amount of senior notes due October 1, 2030 ("2030 Senior Notes"). The 2030 Senior Notes bear an interest rate of 3.50% pe r year, payable on April 1 and October 1 of each year, commencing on April 1, 2021. The 2030 Senior Notes were priced at 99.656% of par value, reflecting a discount to the aggregate principal amount. We used a portion of the net proceeds of the 2030 Senior Notes offering to fund a partial tender offer of our 2022 Euro Senior Notes . During the third quarter of 2020 we had tendered $191.4 million of our 2022 Euro Senior Notes and have r ecorded in interest expense an early extinguishment loss of $1.2 million. On February 17, 2021, we announced that we will redeem the outstanding balance of our 2022 Euro Senior Notes on March 19, 2021. We will use the remaining net proceeds from the public offering of the 2030 Senior Notes for the redemption. On March 17, 2015, we completed a public offering of €500.0 million of Euro senior notes in aggregate principal amount due March 17, 2022. The 2022 Euro Senior Notes bear an interest rate of 1.25% per year, payable each year on March 17. The 2022 Euro Senior Notes were priced at 99.336% of par value, reflecting a discount to the aggregate principal amount. On November 1, 2013 we completed the public offering of $300.0 million in aggregate principal amount of senior notes due November 15, 2023 ("2023 Senior Notes"). The 2023 Senior Notes bear an interest rate of 4.00% per year, payable on May 15 and November 15 of each year. The 2023 Senior Notes were priced at 99.532% of par value, reflecting a discount to the aggregate principal amount. On September 11, 2012, we completed the public offering of $500.0 million in aggregate principal amount of senior notes due September 15, 2022 ("2022 Senior Notes"). The 2022 Senior Notes bear an interest rate of 3.50% per year, payable on March 15 and September 15 of each year. The 2022 Senior Notes were priced at 99.615% of par value, reflecting a discount to the aggregate principal amount. We have the right to redeem the 2022 Senior Notes, 2023 Senior Notes and 2030 Senior notes at any time prior to June 15, 2022, August 15, 2023 and July 1, 2030, respectively, in whole or in part, at our option, at a redemption price equal to the greater of: (1) 100% of the principal amount of the senior notes being redeemed; or (2) the sum of the present values of the remaining scheduled payments of principal and interest in respect of the Senior Notes being redeemed discounted to the redemption date on a semi-annual basis, at the applicable Treasury Rate plus 30 basis points for the 2022 Senior Notes, plus 25 basis points for the 2023 Senior Notes and plus 45 basis points for the 2030 Senior Notes. In addition, at any time on or after June 15, 2022 for the 2022 Senior Notes, August 15, 2023 for the 2023 Senior Notes and July 1 2030 for the 2030 Senior Notes, we may redeem the Senior Notes at a redemption price equal to 100% of the principal amount of the Senior Notes being redeemed. In each case, we will also pay the accrued and unpaid interest on the principal amount being redeemed to the redemption date. We have the right to redeem the 2022 Euro Senior Notes at any time prior to December 17, 2021, in whole or in part, at our option, at a redemption price equal to the greater of: (1) 100% of the principal amount of the senior notes being redeemed; or (2) the sum of the present values of the remaining scheduled payments of principal and interest in respect of the Senior Notes being redeemed (exclusive of interest accrued to, but excluding, the date of redemption) discounted to the redemption date on an annual basis, at the Comparable German Government Bond Rate plus 25 basis points. At any time on or after December 17, 2021, we may redeem the 2022 Euro Senior Notes , in whole or in part from time to time, at our option, at a redemption price equal to 100% of the principal amount of the notes to be redeemed. Senior Credit Facility On September 4, 2020, we amended our credit agreement with Bank of America, N.A., as administrative agent, and the other lenders party thereto ("Amended Credit Agreement") to provide greater flexibility in maintaining adequate liquidity in the event we have the need to access available borrowings under our Senior Credit Facility ("Credit Facility"). The Credit Agreement provides for a $800.0 million unsecured senior credit facility with a maturity date of July 16, 2024 (“Senior Credit Facility”). The Senior Credit Facility includes a $750.0 million sublimit for the issuance of letters of credit and a $30.0 million sublimit for swing line loans. We have the right to increase the amount of the Senior Credit Facility by an aggregate amount not to exceed $400.0 million, subject to certain conditions, including each Lender's approval providing any increase. The Amended Credit Agreement, among other things, (i) replaces the existing leverage ratio financial covenant (the “Existing Leverage Covenant”) with a leverage ratio financial covenant that requires the Company’s ratio of consolidated funded indebtedness, minus the amount of all cash and cash equivalents on our balance sheet in excess of $250.0 million, to the Company’s Consolidated EBITDA, not to exceed 4.00 to 1.00 as of the last day of any quarter through and including December 31, 2021 (the “Covenant Relief Period”), (ii) amends the Existing Leverage Covenant to provide that it will not be tested until the quarter ending March 31, 2022, (iii) provides that the Existing Leverage Covenant, beginning March 31, 2022, cannot exceed 4.00 to 1.00 (or as increased to 4.50 to 1.00 in connection with certain acquisitions) and (iv) limits the Company’s ability to pay dividends and repurchase its shares of common stock, par value $1.25, during the Covenant Relief Period, to an amount not to exceed 115% of the total amount of dividends and share repurchases we made during the period commencing January 1, 2019 through and including June 30, 2020. T he interest rates per annum applicable to the Senior Credit Facility (other than with respect to swing line loans) are LIBOR plus between 1.000% to 1.750%, depending on our debt rating by either Moody’s Investors Service, Inc. or Standard & Poor’s Financial Services LLC ("S&P") Ratings, or, at our option, the Base Rate (as defined in the Senior Credit Agreement) plus between 0.000% to 0.750% depending on our debt rating by either Moody’s Investors Service, Inc. or S&P Global Ratings. As of December 31, 2020, the interest rate on the Senior Credit Facility was LIBOR plus 1.375% in the case of LIBOR loans and the Base Rate plus 0.375% in the case of Base Rate loans. In addition, a commitment fee is payable quarterly in arrears on the daily unused portions of the Senior Credit Facility. The commitment fee will be between 0.090% and 0.300% of unused amounts under the Senior Credit Facility depending on our debt rating by either Moody’s Investors Service, Inc. or S&P Global Ratings. The commitment fee was 0.20% (per annum) during the period ended December 31, 2020. As of December 31, 2020, and December 31, 2019, we had no revolving loans outstanding under the Senior Credit Facility. We had outstanding letters of credit of $58.1 million and $88.5 million at December 31, 2020, and December 31, 2019, respectively. The amount available for borrowings under our Senior Credit Facility was $741.9 million, compared to $711.5 million at December 31, 2019. Financial Covenants — Our compliance with the financial covenants under the Senior Notes and Senior Credit Facility are tested quarterly. We were in compliance with all covenants as of December 31, 2020. |
Pension and Postretirement Bene
Pension and Postretirement Benefits | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Pension and Postretirement Benefits | PENSION AND POSTRETIREMENT BENEFITS We sponsor several noncontributory defined benefit pension plans, covering substantially all U.S. employees and certain non-U.S. employees, which provide benefits based on years of service, age, job grade levels and type of compensation. Retirement benefits for all other covered employees are provided through contributory pension plans, cash balance pension plans and government-sponsored retirement programs. All funded defined benefit pension plans receive funding based on independent actuarial valuations to provide for current service and an amount sufficient to amortize unfunded prior service over periods not to exceed 30 years, with funding falling within the legal limits prescribed by prevailing regulation. We also maintain unfunded defined benefit plans that, as permitted by local regulations, receive funding only when benefits become due. Our defined benefit plan strategy is to ensure that current and future benefit obligations are adequately funded in a cost-effective manner. Additionally, our investing objective is to achieve the highest level of investment performance that is compatible with our risk tolerance and prudent investment practices. Because of the long-term nature of our defined benefit plan liabilities, our funding strategy is based on a long-term perspective for formulating and implementing investment policies and evaluating their investment performance. The asset allocation of our defined benefit plans reflects our decision about the proportion of the investment in equity and fixed income securities, and, where appropriate, the various sub-asset classes of each. At least annually, we complete a comprehensive review of our asset allocation policy and the underlying assumptions, which includes our long-term capital markets rate of return assumptions and our risk tolerances relative to our defined benefit plan liabilities. The expected rates of return on defined benefit plan assets are derived from review of the asset allocation strategy, expected long-term performance of asset classes, risks and other factors adjusted for our specific investment strategy. These rates are impacted by changes in general market conditions, but because they are long-term in nature, short-term market changes do not significantly impact the rates. Our U.S. defined benefit plan assets consist of a balanced portfolio of equity and fixed income securities. Our non-U.S. defined benefit plan assets include a significant concentration of United Kingdom ("U.K.") fixed income securities. We monitor investment allocations and manage plan assets to maintain acceptable levels of risk. For all periods presented, we used a measurement date of December 31 for each of our U.S. pension plans, non-U.S. pension plans and postretirement medical plans. U.S. Defined Benefit Plans We maintain qualified and non-qualified defined benefit pension plans in the U.S. The qualified plan provides coverage for substantially all full-time U.S. employees who receive benefits, up to an earnings threshold specified by the U.S. Department of Labor. The non-qualified plans primarily cover a small number of employees including current and former members of senior management, providing them with benefit levels equivalent to other participants, but that are otherwise limited by U.S. Department of Labor rules. The U.S. plans are designed to operate as "cash balance" arrangements, under which the employee has the option to take a lump sum payment at the end of their service. The difference between total accumulated benefit obligation and total projected benefit obligation ("Benefit Obligation") is immaterial. The following are assumptions related to the U.S. defined benefit pension plans: Year Ended December 31, 2020 2019 2018 Weighted average assumptions used to determine Benefit Obligations: Discount rate 2.62 % 3.41 % 4.34 % Rate of increase in compensation levels 3.63 3.50 3.50 Weighted average assumptions used to determine net pension expense: Long-term rate of return on assets 6.00 % 6.00 % 6.00 % Discount rate 3.41 4.34 3.63 Rate of increase in compensation levels 3.56 3.50 4.01 Weighted-average interest crediting rates 3.79 % 3.79 % 3.79 % At December 31, 2020 as compared with December 31, 2019, we decreased our discount rate from 3.41% to 2.62% based on an analysis of publicly-traded investment grade U.S. corporate bonds, which had a lower yield due to current market conditions. In determining 2020 expense, the expected rate of return on U.S. plan assets remained constant at 6.00% , primarily based on our target allocations and expected long-term asset returns. The long-term rate of return assumption is calculated using a quantitative approach that utilizes unadjusted historical returns and asset allocation as inputs for the calculation. For all U.S. plans, we adopted the Pri-2012 mortality tables and the MP-2020 improvement scale published in October 2020. We applied the Pri-2012 tables based on the constituency of our plan population for union and non-union participants. We adjusted the improvement scale to utilize the Proxy SSA Long Term Improvement Rates ("LTIR"), consistent with assumptions adopted by the Social Security Administration trustees, based on long-term historical experience. Currently, we believe this approach provides the best estimate of our future obligation. Most plan participants elect to receive plan benefits as a lump sum at the end of service, rather than an annuity. As such, the updated mortality tables had an immaterial effect on our pension obligation. Net pension expense for the U.S. defined benefit pension plans (including both qualified and non-qualified plans) was: Year Ended December 31, 2020 2019 2018 (Amounts in thousands) Service cost $ 25,893 $ 23,245 $ 22,195 Interest cost 15,100 17,584 15,789 Expected return on plan assets (25,794) (25,645) (25,704) Settlement loss (gain) 128 — (462) Amortization of unrecognized prior service cost 184 164 164 Amortization of unrecognized net loss 6,977 3,675 5,514 U.S. net pension expense $ 22,488 $ 19,023 $ 17,496 The following summarizes the net pension (liability) asset for U.S. plans: December 31, 2020 2019 (Amounts in thousands) Plan assets, at fair value $ 477,680 $ 482,553 Benefit Obligation (487,418) (471,462) Funded status $ (9,738) $ 11,091 The following summarizes amounts recognized in the balance sheet for U.S. plans: December 31, 2020 2019 (Amounts in thousands) Noncurrent assets $ — $ 16,396 Current liabilities (233) (348) Noncurrent liabilities (9,505) (4,957) Funded status $ (9,738) $ 11,091 The following is a summary of the changes in the U.S. defined benefit plans’ pension obligations: December 31, 2020 2019 (Amounts in thousands) Balance — January 1 $ 471,462 $ 432,595 Service cost 25,893 23,245 Interest cost 15,100 17,584 Plan amendments and settlements (953) 276 Actuarial losses (1) 29,166 31,214 Benefits paid (53,250) (33,452) Balance — December 31 $ 487,418 $ 471,462 Accumulated benefit obligations at December 31 $ 486,501 $ 470,643 _______________________________________ (1) The actuarial losses in 2020 and 2019 primarily reflect the impact of changes in the discount rate. The following table summarizes the expected cash benefit payments for the U.S. defined benefit pension plans in the future (amounts in millions): 2021 $ 43.3 2022 42.2 2023 42.8 2024 41.2 2025 42.4 2026-2030 196.3 The following table shows the change in accumulated other comprehensive loss attributable to the components of the net cost and the change in Benefit Obligations for U.S. plans, net of tax: December 31, 2020 2019 (Amounts in thousands) Balance — January 1 $ (49,510) $ (62,018) Amortization of net loss 5,336 2,809 Amortization of prior service cost 140 125 Net (loss) gain arising during the year (5,328) 9,785 Settlement gain 98 — Prior service cost arising during the year (57) (211) Balance — December 31 $ (49,321) $ (49,510) Amounts recorded in accumulated other comprehensive loss consist of: December 31, 2020 2019 (Amounts in thousands) Unrecognized net loss $ (48,460) $ (48,578) Unrecognized prior service cost (861) (932) Accumulated other comprehensive loss, net of tax $ (49,321) $ (49,510) The following is a reconciliation of the U.S. defined benefit pension plans’ assets: December 31, 2020 2019 (Amounts in thousands) Balance — January 1 $ 482,553 $ 425,792 Return on plan assets 47,992 69,663 Company contributions 1,412 20,552 Benefits paid (53,250) (33,454) Settlements (1,027) — Balance — December 31 $ 477,680 $ 482,553 We contributed $1.4 million and $20.6 million to the U.S. defined benefit pension plans during 2020 and 2019, respectively. These payments exceeded the minimum funding requirements mandated by the U.S. Department of Labor rules. Our estimated contribution in 2021 is expected to be approximately $20 million, excluding direct benefits paid. All U.S. defined benefit plan assets are held by the qualified plan. The asset allocations for the qualified plan at the end of 2020 and 2019 by asset category, are as follows: Target Allocation Percentage of Actual Plan Assets at December 31, Asset category 2020 2019 2020 2019 Cash and cash equivalents — % — % 1 % 1 % Cash and cash equivalents — % — % 1 % 1 % Global Equity 31 % 31 % 30 % 28 % Global Real Assets 12 % 12 % 13 % 12 % Equity securities 43 % 43 % 43 % 40 % Diversified Credit 12 % 12 % 14 % 12 % Liability-Driven Investment 45 % 45 % 42 % 47 % Fixed income 57 % 57 % 56 % 59 % None of our common stock is directly held by our qualified plan. Our investment strategy is to earn a long-term rate of return consistent with an acceptable degree of risk and minimize our cash contributions over the life of the plan, while taking into account the liquidity needs of the plan. We preserve capital through diversified investments in high quality securities. Our current allocation target is to invest approximately 43% of plan assets in equity securities and 57% in fixed income securities. Within each investment category, assets are allocated to various investment strategies. Professional money management firms manage our assets, and we engage a consultant to assist in evaluating these activities. We periodically review the allocation target, generally in conjunction with an asset and liability study and in consideration of our future cash flow needs. We regularly rebalance the actual allocation to our target investment allocation. Plan assets are invested in commingled funds. Our "Pension and Investment Committee" is responsible for setting the investment strategy and the target asset allocation for the plan's assets. As the qualified plan approached fully funded status, we implemented a Liability-Driven Investing ("LDI") strategy, which more closely aligns the duration of the plan's assets with the duration of its liabilities. The LDI strategy results in an asset portfolio that more closely matches the behavior of the liability, thereby reducing the volatility of the plan's funded status. The plan’s financial instruments, shown below, are presented at fair value. See Note 1 for further discussion on how the hierarchical levels of the fair values of the Plan’s investments are determined. The fair values of our U.S. defined benefit plan assets were: At December 31, 2020 At December 31, 2019 Hierarchical Levels Hierarchical Levels Total I II III Total I II III (Amounts in thousands) (Amounts in thousands) Cash and cash equivalents $ 5,986 $ 5,986 $ — $ — $ 4,994 $ 4,994 $ — $ — Commingled Funds: Equity securities Global Equity(a) 142,401 — 142,401 — 135,350 — 135,350 — Global Real Assets(b) 61,604 — 61,604 — 60,523 — 60,523 — Fixed income securities Diversified Credit(c) 66,995 — 66,995 — 56,375 — 56,375 — Liability-Driven Investment(d) 200,694 — 200,694 — 225,311 — 225,311 — $ 477,680 $ 5,986 $ 471,694 $ — $ 482,553 $ 4,994 $ 477,559 $ — _______________________________________ (a) Global Equity fund seeks to closely track the performance of the MSCI All Country World Index. (b) Global Real Asset funds seek to provide exposure to the listed global real estate investment trusts (REITs) and infrastructure markets. (c) Diversified Credit funds seek to provide exposure to the high yield, emerging markets, bank loans and securitized credit markets. (d) Liability-Driven Investment ("LDI") funds seek to invest in high quality fixed income securities that collectively closely match those found in discount curves used to value the plan's liabilities. Non-U.S. Defined Benefit Plans We maintain defined benefit pension plans, which cover some or all of our employees in the following countries: Austria, Belgium, Canada, France, Germany, India, Italy, Japan, Mexico, The Netherlands, Sweden, Switzerland and the U.K. The assets of the plans in the U.K. (two plans), The Netherlands and Canada represent 94% of the total non-U.S. plan assets ("non-U.S. assets"). Details of other countries’ plan assets have not been provided due to immateriality. The following are assumptions related to the non-U.S. defined benefit pension plans: Year Ended December 31, 2020 2019 2018 Weighted average assumptions used to determine Benefit Obligations: Discount rate 1.23 % 1.61 % 2.42 % Rate of increase in compensation levels 3.11 3.12 3.28 Weighted average assumptions used to determine net pension expense: Long-term rate of return on assets 2.37 % 3.37 % 3.62 % Discount rate 1.61 2.42 2.25 Rate of increase in compensation levels 3.12 3.28 3.25 Weighted-average interest crediting rates 1.00 % 1.00 % 1.00 % At December 31, 2020, as compared with December 31, 2019, we decreased our average discount rate for non-U.S. plans from 1.61% to 1.23% based on analysis of bonds and other publicly-traded instruments, by country, which had lower yields due to market conditions. To determine 2020 pension expense, we decreased our average expected rate of return on plan assets from 3.37% at December 31, 2019 to 2.37% at December 31, 2020, primarily based on our target allocations and expected long-term asset returns. As the expected rate of return on plan assets is long-term in nature, short-term market fluctuations do not significantly impact the rate. Many of our non-U.S. defined benefit plans are unfunded, as permitted by local regulation. The expected long-term rate of return on assets for funded plans was determined by assessing the rates of return for each asset class and is calculated using a quantitative approach that utilizes unadjusted historical returns and asset allocation as inputs for the calculation. We work with our actuaries to determine the reasonableness of our long-term rate of return assumptions by looking at several factors including historical returns, expected future returns, asset allocation, risks by asset class and other items. Net pension expense for non-U.S. defined benefit pension plans was: Year Ended December 31, 2020 2019 2018 (Amounts in thousands) Service cost $ 7,052 $ 5,728 $ 7,208 Interest cost 6,572 8,867 8,970 Expected return on plan assets (5,018) (7,535) (8,747) Amortization of unrecognized net loss 4,315 2,933 3,626 Amortization of unrecognized prior service cost (benefit) 262 265 33 Settlement loss (gain) and other 708 859 (521) Non-U.S. net pension expense $ 13,891 $ 11,117 $ 10,569 The following summarizes the net pension liability for non-U.S. plans: December 31, 2020 2019 (Amounts in thousands) Plan assets, at fair value $ 287,308 $ 262,559 Benefit Obligation (469,998) (425,617) Funded status $ (182,690) $ (163,058) The following summarizes amounts recognized in the balance sheet for non-U.S. plans: December 31, 2020 2019 \ (Amounts in thousands) Noncurrent assets $ 18,910 $ 16,379 Current liabilities (8,121) (7,609) Noncurrent liabilities (193,479) (171,828) Funded status $ (182,690) $ (163,058) The following is a reconciliation of the non-U.S. plans’ defined benefit pension obligations: December 31, 2020 2019 (Amounts in thousands) Balance — January 1 $ 425,617 $ 376,649 Service cost 7,052 5,728 Interest cost 6,572 8,867 Employee contributions 80 78 Settlements and other (2,701) (3,713) Actuarial losses (1) 23,781 48,888 Net benefits and expenses paid (15,700) (14,526) Currency translation impact(2) 25,297 3,646 Balance — December 31 $ 469,998 $ 425,617 Accumulated benefit obligations at December 31 $ 446,097 $ 404,035 _______________________________________ (1) The 2019 actuarial loss primarily reflects the decrease in the discount rates for all plans. (2) In 2020, the currency translation loss reflects the weakening of the U.S. dollar against the Euro and the British pound, while in 2019 the currency translation loss reflects the weakening of the U.S. dollar against the British pound, partially offset by the strengthening of the U.S. dollar against the Euro. The following table summarizes the expected cash benefit payments for the non-U.S. defined benefit plans in the future (amounts in millions): 2021 $ 17.6 2022 18.1 2023 18.1 2024 19.1 2025 18.7 2026-2030 100.3 The following table shows the change in accumulated other comprehensive loss attributable to the components of the net cost and the change in Benefit Obligations for non-U.S. plans, net of tax: December 31, 2020 2019 (Amounts in thousands) Balance — January 1 $ (89,337) $ (62,088) Amortization of net loss 4,410 2,946 Net losses arising during the year (7,432) (29,910) Settlement losses 681 746 Prior service cost arising during the year (467) — Currency translation impact and other (5,101) (1,031) Balance — December 31 $ (97,246) $ (89,337) Amounts recorded in accumulated other comprehensive loss consist of: December 31, 2020 2019 (Amounts in thousands) Unrecognized net loss $ (93,417) $ (85,891) Unrecognized prior service cost (3,829) (3,446) Accumulated other comprehensive loss, net of tax $ (97,246) $ (89,337) The following is a reconciliation of the non-U.S. plans’ defined benefit pension assets: December 31, 2020 2019 (Amounts in thousands) Balance — January 1 $ 262,559 $ 232,175 Return on plan assets 21,897 23,793 Employee contributions 80 78 Company contributions 11,279 16,782 Settlements (2,939) (3,688) Currency translation impact and other 10,132 7,945 Net benefits and expenses paid (15,700) (14,526) Balance — December 31 $ 287,308 $ 262,559 The 2020 and 2019 increase in the non-US plan assets is due to strong asset returns for UK assets. Our contributions to non-U.S. defined benefit pension plans in 2021 are expected to be approximately $2 million, excluding direct benefits paid. The asset allocations for the non-U.S. defined benefit pension plans at the end of 2020 and 2019 are as follows: Target Allocation at Percentage of Actual Plan Asset category 2020 2019 2020 2019 Cash and cash equivalents 1 % 2 % 1 % 2 % Cash and cash equivalents 1 % 2 % 1 % 2 % North American Companies 1 % 1 % 1 % 1 % Global Equity 1 % 1 % 1 % 1 % Equity securities 2 % 2 % 2 % 2 % U.K. Government Gilt Index 39 % 43 % 39 % 43 % Liability-Driven Investment 12 % 7 % 12 % 7 % Fixed income 51 % 50 % 51 % 50 % Multi-asset 20 % 19 % 20 % 19 % Buy-in Contracts 20 % 21 % 20 % 21 % Other 6 % 6 % 6 % 6 % Other types 46 % 46 % 46 % 46 % None of our common stock is held directly by these plans. In all cases, our investment strategy for these plans is to earn a long-term rate of return consistent with an acceptable degree of risk and minimize our cash contributions over the life of the plan, while taking into account the liquidity needs of the plan and the legal requirements of the particular country. We preserve capital through diversified investments in high quality securities. Asset allocation differs by plan based upon the plan’s benefit obligation to participants, as well as the results of asset and liability studies that are conducted for each plan and in consideration of our future cash flow needs. Professional money management firms manage plan assets and we engage a consultant in the U.K. to assist in evaluation of these activities. The assets of the U.K. plans are overseen by a group of Trustees who review the investment strategy, asset allocation and fund selection. These assets are passively managed as they are invested in index funds that attempt to match the performance of the specified benchmark index. The fair values of the non-U.S. assets were: At December 31, 2020 At December 31, 2019 Hierarchical Levels Hierarchical Levels Total I II III Total I II III (Amounts in thousands) (Amounts in thousands) Cash $ 2,304 $ 2,304 $ — — $ 5,026 $ 5,026 $ — $ — Commingled Funds: Equity securities North American Companies(a) 2,555 — 2,555 — 2,501 — 2,501 — Global Equity(b) 2,451 — 2,451 — 2,411 — 2,411 — Fixed income securities U.K. Government Gilt Index(c) 112,298 — 112,298 — 113,855 — 113,855 — Liability-Driven Investment(d) 34,543 — 34,543 — 20,011 — 20,011 — Other Types of Investments: Multi-asset(e) 57,205 — 57,205 — 48,964 — 48,964 — Buy-in Contracts(f) 59,249 — — 59,249 54,544 — — 54,544 Other(g) 16,703 — — 16,703 15,247 — — 15,247 $ 287,308 $ 2,304 $ 209,052 $ 75,952 $ 262,559 $ 5,026 $ 187,742 $ 69,791 _______________________________________ (a) North American Companies represents U.S. and Canadian large cap equity funds, which are managed to track their respective benchmarks (FTSE All-World USA Index and FTSE All-World Canada Index). (b) Global Equity represents actively managed global equity funds, taking a top-down strategic view on the different regions by analyzing companies based on fundamentals, market-driven, thematic and quantitative factors to generate alpha. (c) U.K. Government Gilt Index represents U.K. government issued fixed income investments which are passively managed to track their respective benchmarks. (d) LDI seeks to invest in fixed income securities that collectively closely match those found in discount curves used to value the plan's liabilities. (e) Multi-asset seeks an attractive risk-adjusted return by investing in a diversified portfolio of strategies, including equities and fixed income. (f) The Buy-in Contracts ("Contract" or "Contracts") represent assets held by plans, whereby the cost of providing benefits to plan participants is funded by the Contract. The Contracts are held by the plans for the benefit of plan participants in the Netherlands and U.K. The fair value of these assets are based on the current present value of accrued benefits and will fluctuate based on changes in the obligations associated with covered plan members as well as the assumptions used in the present value calculation. The fair value of asset held in the Netherlands Contract as of January 1, 2020 wa s $25.9 million, with contributions and currency adjustments resulting in a fair value of $27.4 million at December 31, 2020. Similarly, The fair value of asset held in the U.K. plan Contract as of January 1, 2020 was $28.6 million , with contributions and currency adjustments resulting in a fair value of $31.8 million at December 31, 2020. (g) Includes assets held by plans outside the United Kingdom, the Netherlands and Canada. Details have not been provided due to immateriality. Defined Benefit Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets The following summarizes key pension plan information regarding U.S. and non-U.S. plans whose accumulated benefit obligations exceed the fair value of their respective plan assets. December 31, 2020 2019 (Amounts in thousands) Benefit Obligation $ 735,912 $ 229,793 Accumulated benefit obligation 716,534 212,906 Fair value of plan assets 526,502 46,718 Postretirement Medical Plans We sponsor several defined benefit postretirement medical plans covering certain current retirees and a limited number of future retirees in the U.S. These plans provide for medical and dental benefits and are administered through insurance companies and health maintenance organizations. The plans include participant contributions, deductibles, co-insurance provisions and other limitations and are integrated with Medicare and other group plans. We fund the plans as benefits and health maintenance organization premiums are paid, such that the plans hold no assets in any period presented. Accordingly, we have no investment strategy or targeted allocations for plan assets. Benefits under our postretirement medical plans are not available to new employees or most existing employees. The following are assumptions related to postretirement benefits: Year Ended December 31, 2020 2019 2018 Weighted average assumptions used to determine Benefit Obligation: Discount rate 2.32 % 3.27 % 4.20 % Weighted average assumptions used to determine net expense: Discount rate 3.27 % 4.20 % 3.48 % The assumed ranges for the annual rates of increase in medical costs used to determine net expense were 7.0% for 2020, 7.5% for 2019 and 7% for 2018, with a gradual decrease to 5.0% for 2029 and future years. Net postretirement benefit cost for postretirement medical plans was: Year Ended December 31, 2020 2019 2018 (Amounts in thousands) Interest cost $ 596 $ 754 $ 779 Amortization of unrecognized prior service cost 122 122 122 Amortization of unrecognized net gain (132) (215) (764) Net postretirement benefit expense $ 586 $ 661 $ 137 The following summarizes the accrued postretirement benefits liability for the postretirement medical plans: December 31, 2020 2019 (Amounts in thousands) Postretirement Benefit Obligation $ 18,648 $ 18,862 Funded status $ (18,648) $ (18,862) The following summarizes amounts recognized in the balance sheet for postretirement Benefit Obligation: December 31, 2020 2019 (Amounts in thousands) Current liabilities $ (2,342) $ (2,370) Noncurrent liabilities (16,306) (16,492) Funded status $ (18,648) $ (18,862) The following is a reconciliation of the postretirement Benefit Obligation: December 31, 2020 2019 (Amounts in thousands) Balance — January 1 $ 18,862 $ 18,810 Interest cost 596 754 Employee contributions 916 964 Medicare subsidies receivable 7 14 Actuarial losses 2,434 2,222 Net benefits and expenses paid (4,167) (3,902) Balance — December 31 $ 18,648 $ 18,862 The following presents expected benefit payments for future periods (amounts in millions): Expected 2021 $ 2.4 2022 2.2 2023 2.0 2024 1.8 2025 1.6 2026-2030 6.1 The following table shows the change in accumulated other comprehensive loss attributable to the components of the net cost and the change in Benefit Obligations for postretirement benefits, net of tax: 2020 2019 (Amounts in thousands) Balance — January 1 $ 656 $ 2,425 Amortization of net gain (101) (164) Amortization of prior service cost 94 94 Net losses arising during the year (1,862) (1,699) Balance — December 31 $ (1,213) $ 656 Amounts recorded in accumulated other comprehensive loss consist of: December 31, 2020 2019 (Amounts in thousands) Unrecognized net gain (loss) $ (470) $ 1,512 Unrecognized prior service cost (743) (856) Accumulated other comprehensive income, net of tax $ (1,213) $ 656 We made contributions to the postretirement medical plans to pay benefits of $3.2 million in 2020, $2.9 million in 2019 and $3.2 million in 2018. Because the postretirement medical plans are unfunded, we make contributions as the covered individuals’ claims are approved for payment. Accordingly, contributions during any period are directly correlated to the benefits paid. Defined Contribution Plans We sponsor several defined contribution plans covering substantially all U.S. and Canadian employees and certain other non-U.S. employees. Employees may contribute to these plans, and these contributions are matched in varying amounts by us, including opportunities for discretionary matching contributions by us. Defined contribution plan expense was $20.0 million in 2020, $20.4 million in 2019 and $18.7 million in 2018. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following is a reconciliation of net earnings of Flowserve Corporation and weighted average shares for calculating net earnings per common share. Earnings per weighted average common share outstanding was calculated as follows: Year Ended December 31, 2020 2019 2018 (Amounts in thousands, except per share data) Net earnings of Flowserve Corporation $ 116,326 $ 238,828 $ 104,508 Dividends on restricted shares not expected to vest — — — Earnings attributable to common and participating shareholders $ 116,326 $ 238,828 $ 104,508 Weighted average shares: Common stock 130,373 131,012 130,794 Participating securities 22 22 29 Denominator for basic earnings per common share 130,395 131,034 130,823 Effect of potentially dilutive securities 655 685 448 Denominator for diluted earnings per common share 131,050 131,719 131,271 Net earnings per share attributable to Flowserve Corporation common shareholders: Basic $ 0.89 $ 1.82 $ 0.80 Diluted 0.89 1.81 0.80 Diluted earnings per share is based upon the weighted average number of shares as determined for basic earnings per share plus shares potentially issuable in conjunction with stock options, restricted shares, restricted share units and performance share units. For the years ended ending December 31, 2020, 2019 and 2018, unvested restricted shares of 375,203, 140,459, and 88,656, respectively, were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive. |
Legal Matters and Contingencies
Legal Matters and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters and Contingencies | LEGAL MATTERS AND CONTINGENCIES Asbestos-Related Claims We are a defendant in a substantial number of lawsuits that seek to recover damages for personal injury allegedly caused by exposure to asbestos-containing products manufactured and/or distributed by our heritage companies in the past. Typically, these lawsuits have been brought against multiple defendants in state and federal courts. While the overall number of asbestos-related claims in which we or our predecessors have been named has generally declined in recent years, there can be no assurance that this trend will continue, or that the average cost per claim to us will not further increase. Asbestos-containing materials incorporated into any such products were encapsulated and used as internal components of process equipment, and we do not believe that significant emission of asbestos fibers occurred during the use of this equipment. Our practice is to vigorously contest and resolve these claims, and we have been successful in resolving a majority of claims with little or no payment, other than legal fees. Activity related to asbestos claims during the periods indicated was as follow s : December 31, 2020 2019 2018 Beginning claims(1) 8,345 8,666 12,447 New claims 2,140 2,314 2,766 Resolved claims (2,203) (2,601) (5,980) Other(2) 84 (34) (567) Ending claims(1) 8,366 8,345 8,666 ____________________ (1) Beginning and ending claims data in each period excludes inactive claims, as the Company considers it unlikely that inactive cases will be pursued further by the respective plaintiffs. A claim is classified as inactive either due to inactivity over a period of time or if designated as inactive by the applicable court. (2) Represents the net change in claims as a result of the reclassification of active cases as inactive and inactive cases as active during the period indicated. Cases moved from active to inactive status are removed from the claims count without being accounted for as a "Resolved claim", and cases moved from inactive status to active status are added back to the claims count without being accounted for as a “New claim”. The Company incurred expenses of approximately $15.5 million, $21.8 million and $24.8 million during the periods ending December 31, 2020, 2019 and 2018, respectively, to defend, resolve or otherwise dispose of outstanding claims, including legal and other related expenses. These expenses are included within SG&A in the Consolidated Statements of Income. The Company had cash (inflows)/outflows (net of insurance and/or indemnity) to defend, resolve or otherwise dispose of outstanding claims, including legal and other related expenses of approximately $(5.5) million , $12.2 million and $12.6 million during the periods ending December 31, 2020, 2019 and 2018, respectively. Historically, a high percentage of resolved claims have been covered by applicable insurance or indemnities from other companies, and we believe that a substantial majority of existing claims should continue to be covered by insurance or indemnities, in whole or in part. We believe that our reserve for asbestos claims and the receivable for recoveries from insurance carriers that we have recorded for these claims reflects reasonable and probable estimates of these amounts. Our estimate of our ultimate exposure for asbestos claims, however, is subject to significant uncertainties, including the timing and number and types of new claims, unfavorable court rulings, judgments or settlement terms and ultimate costs to settle. Additionally, including the continued viability of carriers, may also impact the amount of probable insurance recoveries. We believe that these uncertainties could have a material adverse impact on our business, financial condition, results of operations and cash flows, though we currently believe the likelihood is remote. Additionally, we have claims pending against certain insurers that, if in future periods are resolved more favorably than reflected in the recorded receivables, would result in discrete gains in the applicable year. Other We are currently involved as a potentially responsible party at four former public waste disposal sites in various stages of evaluation or remediation. The projected cost of remediation at these sites, as well as our alleged "fair share" allocation, will remain uncertain until all studies have been completed and the parties have either negotiated an amicable resolution or the matter has been judicially resolved. At each site, there are many other parties who have similarly been identified. Many of the other parties identified are financially strong and solvent companies that appear able to pay their share of the remediation costs. Based on our information about the waste disposal practices at these sites and the environmental regulatory process in general, we believe that it is likely that ultimate remediation liability costs for each site will be apportioned among all liable parties, including site owners and waste transporters, according to the volumes and/or toxicity of the wastes shown to have been disposed of at the sites. We believe that our financial exposure for existing disposal sites will not be materially in excess of accrued reserves. We are also a defendant in a number of other lawsuits, including product liability claims, that are insured, subject to the applicable deductibles, arising in the ordinary course of business, and we are also involved in other uninsured routine litigation incidental to our business. We currently believe none of such litigation, either individually or in the aggregate, is material to our business, operations or overall financial condition. However, litigation is inherently unpredictable, and resolutions or dispositions of claims or lawsuits by settlement or otherwise could have an adverse impact on our financial position, results of operations or cash flows for the reporting period in which any such resolution or disposition occurs. Although none of the aforementioned potential liabilities can be quantified with absolute certainty except as otherwise indicated above, we have established or adjusted reserves covering exposures relating to contingencies, to the extent believed to be reasonably estimable and probable based on past experience and available facts. While additional exposures beyond these reserves could exist, they currently cannot be estimated. We will continue to evaluate and update the reserves as necessary and appropr iate. |
Warranty Reserve
Warranty Reserve | 12 Months Ended |
Dec. 31, 2020 | |
Product Warranties Disclosures [Abstract] | |
Warranty Reserve | WARRANTY RESERVE We have recorded reserves for product warranty claims that are included in current liabilities. The following is a summary of the activity in the warranty reserve: Year Ended December 31, 2020 2019 2018 (Amounts in thousands) Balance — January 1 $ 30,854 $ 32,033 $ 33,601 Accruals for warranty expense, net of adjustments 21,701 26,215 28,454 Settlements made (24,611) (27,394) (30,022) Balance — December 31 $ 27,944 $ 30,854 $ 32,033 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY Dividends – Generally, our dividend date-of-record is in the last month of the quarter, and the dividend is paid the following month. Any subsequent dividends will be reviewed by our Board of Directors and declared in its discretion. Dividends declared per share were as follows: Year Ended December 31, 2020 2019 2018 Dividends declared per share $ 0.80 $ 0.76 $ 0.76 Share Repurchase Program – in 2014, our Board of Directors approved a $500.0 million share repurchase authorization. Our share repurchase program does not have an expiration date, and we reserve the right to limit or terminate the repurchase program at any time without notice. We repurchased 1,057,115 shares of our outstanding common stock for $32.1 million and 324,889 shares of our outstanding common stock for $15.0 million during the year ended December 31, 2020 and 2019, respectively. We had no repurchases of shares of our outstanding common stock for the year ended December 31, 2018. As of December 31, 2020, we have $113.6 million |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The provision for income taxes consists of the following: Year Ended December 31, 2020 2019 2018 (Amounts in thousands) Current: U.S. federal $ 40,234 $ 22,001 $ 12,079 Foreign 42,487 61,976 29,968 State and local 5,894 4,506 2,647 Total current 88,615 88,483 44,694 Deferred: U.S. federal (50,038) (1,644) 6,567 Foreign 25,356 (12,243) (4,585) State and local (3,902) 897 (126) Total deferred (28,584) (12,990) 1,856 Total provision $ 60,031 $ 75,493 $ 46,550 The provision for income taxes differs from the statutory corporate rate due to the following: Year Ended December 31, 2020 2019 2018 (Amounts in millions) Statutory federal income tax at 21% $ 39.2 $ 67.7 $ 32.9 Foreign impact, net (1.3) 4.5 (5.9) Impact of U.S. Tax Reform Act — — (5.7) Change in valuation allowances 26.9 0.3 15.7 State and local income taxes, net 2.0 5.4 3.7 Research and development credit (5.2) (5.4) — Other, net (1.6) 3.0 5.9 Total $ 60.0 $ 75.5 $ 46.6 Effective tax rate 32.1 % 23.4 % 29.8 % In response to the COVID-19 pandemic, many governments have enacted or are contemplating measures to provide aid and economic stimulus. These measures may include deferring the due dates of tax payments or other changes to their income and non-income-based tax laws. The Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”), which was enacted on March 27, 2020 in the U.S., includes measures to assist companies, including temporary changes to income and non-income-based tax laws. For the year ended December 31, 2020, there were no material tax impacts to our condensed consolidated financial statements as they relate to the CARES Act or any other global COVID-19 measures. We continue to monitor additional guidance issued by the U.S. Treasury Department, the Internal Revenue Service and others. For the years ended December 31, 2020, 2019 and 2018 we have asserted indefinite reinvestment on certain earnings of our foreign subsidiaries. As of December 31, 2020, we have not recorded approximately $19.1 million of deferred tax liabilities associated with remaining unremitted earnings considered indefinitely reinvested, primarily related to foreign withholding taxes that would be due upon repatriation of the designated earnings to the U.S. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the consolidated deferred tax assets and liabilities were: December 31, 2020 2019 (Amounts in thousands) Deferred tax assets related to: Retirement benefits $ 29,754 $ 25,214 Net operating loss carryforwards 109,020 101,193 Compensation accruals 20,290 24,685 Inventories 36,402 34,846 Credit and capital loss carryforwards 136,956 131,744 Warranty and accrued liabilities 27,483 18,741 Bad debt reserve 17,455 30,884 Operating lease liability 25,446 27,799 Other 38,457 25,339 Total deferred tax assets 441,263 420,445 Valuation allowances (287,787) (266,414) Net deferred tax assets 153,476 154,031 Deferred tax liabilities related to: Property, plant and equipment (11,714) (26,311) Goodwill and intangibles (101,818) (114,122) Foreign undistributed earnings (50,332) (67,930) Operating lease right-of-use-assets (25,799) (27,799) Other (17,621) (12,623) Total deferred tax liabilities (207,284) (248,785) Deferred tax liabilities, net $ (53,808) $ (94,754) We have $481.7 million of U.S. and foreign net operating loss carryforwards at December 31, 2020. Of this total, $33.1 million are state net operating losses. Net operating losses generated in the U.S., if unused, will expire in 2024 through 2026 tax years. The majority of our foreign net operating losses carry forward without expiration. Additionally, we have $35.9 million of foreign tax credit carryforwards at December 31, 2020. The foreign tax credit carryforwards, if unused, will expire in 2026, 2028-2030 tax years. Our valuation allowances primarily relate to the deferred tax assets established for U.S. foreign tax credit carryforwards of $35.9 million, a foreign capital loss carryforward of $97.8 million, and other foreign deferred tax assets of $154.1 million. Th e foreign capital loss carryforward was the result of a reorganization of certain foreign subsidiaries in the current year. Due to its capital nature, it is uncertain if the loss will be utilized within its ten year carryforward period and, therefore, has a full valuation allowance. Earnings before income taxes comprised: Year Ended December 31, 2020 2019 2018 (Amounts in thousands) U.S. $ 73,109 $ 110,500 $ 68,838 Foreign 113,703 211,933 87,600 Total $ 186,812 $ 322,433 $ 156,438 A tabular reconciliation of the total gross amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in millions): 2020 2019 2018 Balance — January 1 $ 40.6 $ 41.2 $ 51.5 Gross amount of increase (decrease) in unrecognized tax benefits resulting from tax positions taken: During a prior year 3.8 8.8 (6.6) During the current period 11.1 6.3 4.0 Decreases in unrecognized tax benefits relating to: Settlements with taxing authorities (0.2) (11.4) (2.7) Lapse of the applicable statute of limitations (2.5) (3.2) (3.7) Increase (decrease) in unrecognized tax benefits relating to foreign currency translation adjustments 2.0 (1.1) (1.3) Balance — December 31 $ 54.8 $ 40.6 $ 41.2 The amount of gross unrecognized tax benefits at December 31, 2020, was $73.4 million, which includes $18.6 million of accrued interest and penalties. Of this amount $62.3 million, if recognized, would favorably impact our effective tax rate. With limited exception, we are no longer subject to U.S. federal income tax audits for years through 2017, state and local income tax audits for years through 2014 or foreign income tax audits for years through 2013. We are currently under examination for various years in Canada, Germany, India, Indonesia, Italy, Mexico, the Netherlands, Philippines, Saudi Arabia, the U.S., and Venezuela. It is reasonably possible that within the next 12 months the effective tax rate will be impacted by the resolution of some or all of the matters audited by various taxing authorities. It is also reasonably possible that we will have the statute of limitations close in various taxing jurisdictions within the next 12 months. As such, we estimate we could record a reduction in our tax expense up to approximatel y $8 million w ithin the next 12 months. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION Our business segments share a focus on industrial flow control technology and have a high number of common customers. These segments also have complementary product offerings and technologies that are often combined in applications that provide us a net competitive advantage. Our segments also benefit from our global footprint and our economies of scale in reducing administrative and overhead costs to serve customers more cost effectively. We conduct our operations through two business segments based on type of product and how we manage the business: • FPD for custom, highly-engineered pumps, pre-configured industrial pumps, pump systems, mechanical seals, auxiliary systems and replacement parts and related services; and • FCD for engineered and industrial valves, control valves, actuators and controls and related services. Our corporate headquarters does not constitute a separate division or business segment. Amounts classified as "Eliminations and All Other" include corporate headquarters costs and other minor entities that do not constitute separate segments. Intersegment sales and transfers are recorded at cost plus a profit margin, with the sales and related margin on such sales eliminated in consolidation. The following is a summary of the financial information of our reportable segments as of and for the years ended December 31, 2020, 2019 and 2018 reconciled to the amounts reported in the consolidated financial statements. Subtotal—Reportable Segments Eliminations and All Other Consolidated Total FPD FCD (Amounts in thousands) Year Ended December 31, 2020: Sales to external customers $2,673,705 $ 1,054,429 $ 3,728,134 $ — $ 3,728,134 Intersegment sales 1,965 3,120 5,085 (5,085) — Segment operating income (loss) 270,960 125,573 396,533 (146,256) 250,277 Depreciation and amortization 52,390 21,949 74,339 26,414 100,753 Identifiable assets 3,039,069 1,308,136 4,347,205 967,472 5,314,677 Capital expenditures 21,714 14,043 35,757 21,648 57,405 Subtotal—Reportable Segments Eliminations and All Other Consolidated Total FPD FCD (Amounts in thousands) Year Ended December 31, 2019: Sales to external customers $2,704,445 $ 1,235,252 $ 3,939,697 $ — $ 3,939,697 Intersegment sales 1,833 3,631 5,464 (5,464) — Segment operating income (loss) 343,514 191,945 535,459 (148,836) 386,623 Depreciation and amortization 50,845 23,577 74,422 31,482 105,904 Identifiable assets 2,974,161 1,333,926 4,308,087 630,190 4,938,277 Capital expenditures 26,450 14,449 40,899 34,817 75,716 Subtotal—Reportable Segments Eliminations and All Other Consolidated Total FPD FCD (Amounts in thousands) Year Ended December 31, 2018: Sales to external customers $ 2,620,488 $ 1,215,211 $ 3,835,699 $ — $ 3,835,699 Intersegment sales 2,816 3,637 6,453 (6,453) — Segment operating income (loss) 200,981 204,250 405,231 (177,530) 227,701 Depreciation and amortization 68,148 26,585 94,733 17,740 112,473 Identifiable assets 2,768,879 1,269,435 4,038,314 611,055 4,649,369 Capital expenditures 40,648 14,458 55,106 28,887 83,993 Geographic Information — We attribute sales to different geographic areas based on our facilities’ locations. Long-lived assets are classified based on the geographic area in which the assets are located and exclude deferred taxes, goodwill and intangible assets. Sales and long-lived assets by geographic area are as follows: Year Ended December 31, 2020 Sales Percentage Long-Lived Percentage (Amounts in thousands, except percentages) United States $ 1,463,680 39.3 % $ 455,622 46.2 % EMA(1) 1,385,245 37.2 % 336,577 34.1 % Asia(2) 535,440 14.4 % 138,947 14.1 % Other(3) 343,769 9.1 % 55,278 5.6 % Consolidated total $ 3,728,134 100.0 % $ 986,424 100.0 % Year Ended December 31, 2019 Sales Percentage Long-Lived Percentage (Amounts in thousands, except percentages) United States $ 1,632,582 41.4 % $ 481,474 48.0 % EMA(1) 1,397,308 35.5 % 312,668 31.2 % Asia(2) 551,759 14.0 % 143,848 14.3 % Other(3) 358,048 9.1 % 64,846 6.5 % Consolidated total $ 3,939,697 100.0 % $ 1,002,836 100.0 % Year Ended December 31, 2018 Sales Percentage Long-Lived Percentage (Amounts in thousands, except percentages) United States $ 1,528,963 39.9 % $ 353,767 42.6 % EMA(1) 1,424,498 37.1 % 280,549 33.8 % Asia(2) 539,898 14.1 % 132,667 16.0 % Other(3) 342,340 8.9 % 63,161 7.6 % Consolidated total $ 3,835,699 100.0 % $ 830,144 100.0 % ___________________________________ (1) "EMA" includes Europe, the Middle East and Africa. Germany accounted for approximately 7% for 2020, 6% for 2019 and 7% in 2018, of consolidated long-lived assets. No other individual country within this group represents 10% or more of consolidated totals for any period presented. (2) "Asia" includes Asia and Australia. No individual country within this group represents 10% or more of consolidated totals for any period presented. (3) "Other" includes Canada and Latin America. No individual country within this group represents 10% or more of consolidated totals for any period presented. Net sales to international customers, including export sales from the U.S., represented approximately 65% of total sales in 2020 and 63% of total sales in both 2019 and 2018. Major Customer Information — We have a large number of customers across a large number of manufacturing and service facilities and do not have sales to any individual customer that represent 10% or more of consolidated sales for any of the years presented. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The following presents the components of accumulated other comprehensive loss (AOCL), net of related tax effects: 2020 2019 (Amounts in thousands) Foreign currency translation items(1) Pension and other post-retirement effects Cash flow hedging activity Total(1) Foreign currency translation items(1) Pension and other post-retirement effects Cash flow hedging activity Total(1) Balance - January 1 $ (441,364) $ (137,161) $ (671) $ (579,196) $ (447,925) $ (120,647) $ (858) $ (569,430) Other comprehensive income (loss) before reclassifications 388 (18,979) 183 (18,408) 6,561 (22,523) 187 (15,775) Amounts — 9,417 — 9,417 — 6,009 — 6,009 Net current-period other comprehensive income (loss) 388 (9,562) 183 (8,991) 6,561 (16,514) 187 (9,766) Balance - December 31 $ (440,976) $ (146,723) $ (488) $ (588,187) $ (441,364) $ (137,161) $ (671) $ (579,196) _______________________________________ (1) Includes foreign currency translation adjustments attributable to noncontrolling interests of $5.9 million , $5.1 million and $4.5 million for December 31, 2020, 2019 and 2018, respectively. For the year ended December 31, 2020, foreign currency translation impacts primarily represented the strengthening of the Euro, Chinese yuan, British pound and Canadian dollar exchange rates versus the U.S. dollar for the period. For the year ended December 31, 2019, foreign currency translation impacts primarily represented the weakening of the Euro, British pound, Chinese yuan and Indian rupee exchange rates versus the U.S. dollar for the period. Includes net investment hedge cumulative losses of $48.8 million and $12.1 million, net of deferred taxes, at December 31, 2020 and 2019, respectively. Amounts in parentheses indicate debits. The following table presents the reclassifications out of AOCL: (Amounts in thousands) Affected line item in the statement of income 2020(1) 2019(1) Pension and other postretirement effects Amortization of actuarial losses(2) Other income (expense), net $ (11,161) $ (6,608) Prior service costs(2) Other income (expense), net (568) (429) Settlements and other(2) Other income (expense), net (836) (859) Tax benefit 3,148 1,887 Net of tax $ (9,417) $ (6,009) ______________________________________ (1) Amounts in parentheses indicate decreases to income. None of the reclassification amounts have a noncontrolling interest component. (2) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 14 for additional details. |
Realignment and Transformation
Realignment and Transformation Programs | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Realignment and Transformation Programs | REALIGNMENT AND TRANSFORMATION PROGRAMS In the second quarter of 2020, we identified and initiated certain realignment activities resulting from our Flowserve 2.0 Transformation Program (defined below) to right-size our organizational operations based on the current business environment, with the overall objective to reduce our workforce costs, including manufacturing optimization through the consolidation of certain facilities ("2020 Realignment Program"). The realignment activities consist of restructuring and non-restructuring charges. Restructuring charges represent costs associated with the relocation of certain business activities and facility closures and include related severance costs. Non-restructuring charges are primarily employee severance associated with the workforce reductions. Expenses are primarily reported in cost of sales ("COS") or selling, general and administrative ("SG&A"), as applicable, in our consolidated statements of income. We anticipate a total investment in these initiated realignment activities of approximately $80 million and that the majority of the charges were incurred in 2020 with the remainder to be incurred in early 2021. There are certain other realignment activities that are currently being evaluated, but have not yet been finalized. The realignment programs initiated in 2015 ("2015 Realignment Programs"), which consisted of both restructuring and non-restructuring charges, were substantially complete as of March 31, 2020, resulting in $362.4 million of total charges incurred through the completion of the programs. In the second quarter of 2018, we launched and committed resources to our Flowserve 2.0 Transformation ("Flowserve 2.0 Transformation"), a program designed to transform our business model to drive operational excellence, reduce complexity, accelerate growth, improve organizational health and better leverage our existing global platform. T he Flowserve 2.0 Transformation expenses incurred primarily consist of professional services, project management and related travel costs recorded in SG&A. Generally, the aforementioned charges will be paid in cash, except for asset write-downs, which are non-cash charges. The following is a summary of total charges, net of adjustments, related to our realignment activities and Flowserve 2.0 Transformation charges. Realignment charges incurred in 2020 related to our 2020 Realignment Program and realignment charges incurred in 2019 related to our 2015 Realignment Programs: December 31, 2020 (Amounts in thousands) FPD FCD Subtotal–Reportable Segments All Other Consolidated Total Restructuring Charges COS $ 19,510 $ 1,122 $ 20,632 $ — $ 20,632 SG&A(1) 156 335 491 (16) 475 $ 19,666 $ 1,457 $ 21,123 $ (16) $ 21,107 Non-Restructuring Charges COS $ 19,328 $ 7,285 $ 26,613 $ 52 $ 26,665 SG&A 11,166 4,605 15,771 18,527 34,298 $ 30,494 $ 11,890 $ 42,384 $ 18,579 $ 60,963 Transformation Charges SG&A $ — $ — $ — $ 22,719 $ 22,719 $ — $ — $ — $ 22,719 $ 22,719 Total Realignment and Transformation Charges COS $ 38,838 $ 8,407 $ 47,245 $ 52 $ 47,297 SG&A 11,322 4,940 16,262 41,230 57,492 Total $ 50,160 $ 13,347 $ 63,507 $ 41,282 $ 104,789 December 31, 2019 (Amounts in thousands) FPD FCD Subtotal–Reportable Segments All Other Consolidated Total Restructuring Charges COS $ 1,149 $ 2,653 $ 3,802 $ — $ 3,802 SG&A(1) (16,610) 556 (16,054) — (16,054) Income tax expense(2) (4,000) — (4,000) — (4,000) $ (19,461) $ 3,209 $ (16,252) $ — $ (16,252) Non-Restructuring Charges COS 11,438 $ 1,742 $ 13,180 $ 255 $ 13,435 SG&A 2,104 218 2,322 4,428 6,750 $ 13,542 $ 1,960 $ 15,502 $ 4,683 $ 20,185 Transformation Charges SG&A $ — $ — $ — 28,039 $ 28,039 $ — $ — $ — $ 28,039 $ 28,039 Total Realignment and Transformation Charges COS $ 12,587 $ 4,395 $ 16,982 $ 255 $ 17,237 SG&A (14,506) 774 (13,732) 32,467 18,735 Income tax expense(2) (4,000) — (4,000) — (4,000) Total $ (5,919) $ 5,169 $ (750) $ 32,722 $ 31,972 ____________________________________ (1) Includes gains from the sales of non-strategic manufacturing facilities that are included in our Realignment Programs. (2) Income tax expense (benefit) includes exit taxes. The following is a summary of total inception to date charges, net of adjustments, related to the 2020 Realignment Program initiated in 2020: 2020 Realignment Program Inception to Date (Amounts in thousands) FPD FCD Subtotal–Reportable Segments All Other Consolidated Total Restructuring Charges COS $ 17,829 $ 1,227 $ 19,056 $ — $ 19,056 SG&A 51 325 376 — 376 $ 17,880 $ 1,552 $ 19,432 $ — $ 19,432 Non-Restructuring Charges COS $ 19,203 $ (473) $ 18,730 $ 52 $ 18,782 SG&A 10,681 4,554 15,235 17,882 33,117 $ 29,884 $ 4,081 $ 33,965 $ 17,934 $ 51,899 Total Realignment Charges COS $ 37,032 $ 754 $ 37,786 $ 52 $ 37,838 SG&A 10,732 4,879 15,611 17,882 33,493 Total $ 47,764 $ 5,633 $ 53,397 $ 17,934 $ 71,331 Restructuring charges represent costs associated with the relocation or reorganization of certain business activities and facility closures and include costs related to employee severance at closed facilities, contract termination costs, asset write-downs and other costs. Severance costs primarily include costs associated with involuntary termination benefits. Contract termination costs include costs related to the termination of operating leases or other contract termination costs. Asset write-downs include accelerated depreciation of fixed assets, accelerated amortization of intangible assets, divestiture of certain non-strategic assets and inventory write-downs. Other costs generally include costs related to employee relocation, asset relocation, vacant facility costs (i.e., taxes and insurance) and other charges. The following is a summary of restructuring charges, net of adjustments, for our restructuring activities. Restructuring charges incurred in 2020 related to our 2020 Realignment Program and restructuring charges incurred in 2019 related to our 2015 Realignment Programs: December 31, 2020 (Amounts in thousands) Severance Contract Termination Asset Write-Downs Other Total COS $ 16,927 $ 52 $ 1,409 $ 2,244 $ 20,632 SG&A 223 — 11 241 475 Total $ 17,150 $ 52 $ 1,420 $ 2,485 $ 21,107 December 31, 2019 (Amounts in thousands) Severance Contract Termination Asset Write-Downs/(Gains) Other Total COS $ 2,183 $ 58 $ (1,782) $ 3,343 $ 3,802 SG&A(1) 2,211 — (18,429) 164 (16,054) Income tax expense(2) — — — (4,000) (4,000) Total $ 4,394 $ 58 $ (20,211) $ (493) $ (16,252) _____________________________________ (1) Primarily consists of gains from the sales of non-strategic manufacturing facilities that are included in our Realignment Programs. (2) Income tax expense (benefit) includes exit taxes as well as non-deductible costs. The following is a summary of total inception to date charges, net of adjustments, related to the 2020 Realignment Program initiated in 2020: 2020 Realignment Program Inception to Date (Amounts in thousands) Severance Contract Termination Asset Write-Downs Other Total COS $ 15,244 $ 52 $ 1,412 $ 2,348 $ 19,056 SG&A 84 — 14 278 376 Total $ 15,328 $ 52 $ 1,426 $ 2,626 $ 19,432 The following represents the activity, primarily severance, related to the restructuring reserve for the Realignment Programs for the years ended December 31, 2020 and 2019: (Amounts in thousands) 2020 2019 Balance at January 1, $ 6,703 $ 11,927 Charges 19,686 7,958 Cash expenditures (9,146) (12,865) Other non-cash adjustments, including currency 1,012 (317) Balance at December 31, $ 18,255 $ 6,703 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) The following presents a summary of the unaudited quarterly data for 2020 and 2019 (amounts in millions, except per share data): 2020 Quarter 4th 3rd 2nd 1st Sales $ 985.3 $ 924.3 $ 925.0 $ 893.5 Gross profit 295.4 285.2 269.7 266.5 Earnings before income taxes 61.3 72.3 16.7 36.5 Net earnings (loss) attributable to Flowserve Corporation 56.9 51.0 9.7 (1.3) Earnings (loss) per share(1): Basic $ 0.44 $ 0.39 $ 0.07 $ (0.01) Diluted 0.43 0.39 0.07 (0.01) 2019 Quarter 4th 3rd 2nd 1st Sales $ 1,068.2 $ 995.7 $ 990.0 $ 885.8 Gross profit 349.5 332.9 317.9 289.0 Earnings before income taxes 90.9 84.4 77.4 69.7 Net earnings attributable to Flowserve Corporation 72.6 59.8 54.0 52.4 Earnings per share(1): Basic $ 0.55 $ 0.46 $ 0.41 $ 0.40 Diluted 0.55 0.45 0.41 0.40 _______________________________________ (1) Earnings per share is computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in weighted average quarterly shares outstanding. We have revised our consolidated financial statements for the annual periods 2019 and 2018, herein to correct errors, as further discussed in Note 2 to the consolidated financial statements. We previously revised our consolidated financial statements as of and for the quarterly period ended September 30, 2019 in connection with filing of the Form 10-Q for the period ended September 30, 2020 as filed on November 9, 2020. Other periods above have been derived from our Quarterly Reports on Form 10-Q filed for the respective period, in each case adjusted to reflect the impact of the revisions as described in Note 2 of this Annual Report. The consolidated financial statements for the quarterly periods ended March 31, 2020 and June 30, 2020 will be revised in connection with the filing of each respective period in 2021. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | FLOWSERVE CORPORATION Schedule II — Valuation and Qualifying Accounts For the Years Ended December 31, 2020, 2019 and 2018 Description Balance at Additions Additions Deductions From Reserve Balance at End of Year (Amounts in thousands) Year Ended December 31, 2020 Allowance for doubtful accounts(a): $ 47,269 18,929 — (6,918) $ 59,280 Allowance for other short-term receivables 6,144 9,753 — — 15,897 Allowance for long-term receivables 198,957 3,557 — (15) 202,499 Deferred tax asset valuation allowance(b): 266,414 50,327 (529) (28,425) 287,787 Year Ended December 31, 2019 Allowance for doubtful accounts(a): 51,501 3,762 — (7,994) 47,269 Allowance for other short-term receivables — 6,144 — — 6,144 Allowance for long-term receivables 182,872 16,161 — (76) 198,957 Deferred tax asset valuation allowance(b): 133,929 145,010 1,832 (14,357) 266,414 Year Ended December 31, 2018 Allowance for doubtful accounts(a): 59,113 8,050 — (15,662) 51,501 Allowance for long-term receivables 171,340 13,099 — (1,567) 182,872 Deferred tax asset valuation allowance(b): 119,309 32,157 (7,551) (9,986) 133,929 _______________________________________ (a) Deductions from reserve represent accounts written off and recoveries related to trade accounts receivables. |
Significant Accounting Polici_2
Significant Accounting Policies and Accounting Developments (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation — The consolidated financial statements include the accounts of our company and our wholly and majority-owned subsidiaries. In addition, we would consolidate any variable interest entities for which we are deemed to be the primary beneficiary. Noncontrolling interests of non-affiliated parties have been recognized for all majority-owned consolidated subsidiaries. Intercompany profits/losses, transactions and balances among consolidated entities have been eliminated from our consolidated financial statements. In the ordinary course of our operations worldwide, we have entered into joint ventures and interests (collectively referred to as “affiliates”) to provide greater flexibility in delivering our products and services, gain access to markets and geographical locations and reduce exposure and diversify risk. Investments in affiliate companies with a noncontrolling ownership interests between 20% and 50%, are unconsolidated and are accounted for using the equity method, which approximates our equity interest in their underlying equivalent net book value under accounting principles generally accepted in the U.S. ("U.S. GAAP"). All equity method investments are reviewed for impairment whenever events and conditions indicate that a decrease in the value of an investment has occurred that is other than temporary. If impaired, an |
Use of Estimates | Use of Estimates — The process of preparing financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect reported amounts of certain assets, liabilities, revenues and expenses. We believe our estimates and assumptions are reasonable; however, actual results may differ materially from such estimates. The full extent to which the COVID-19 pandemic directly or indirectly impacts our business, results of operations and financial condition, including sales, expenses, our allowance for expected credit losses, stock based compensation, the carrying value of our goodwill and other long-lived assets, financial assets, and valuation allowances for tax assets, will depend on future developments that are highly uncertain, including as a result of new information that may emerge concerning COVID-19 and the actions taken to contain it or treat it, as well as the economic impact on local, regional, national and international customers, suppliers and markets. We have made estimates of the impact of COVID-19 within our financial statements and there may be changes to those estimates in the near to mid-term as new information becomes available. The most significant estimates and assumptions are used in determining: • Timing and amount of revenue recognition; • Deferred taxes, tax valuation allowances and tax reserves; • Reserves for contingent loss; • Pension and postretirement benefits; and • Valuation of goodwill, indefinite-lived intangible assets and other long-lived assets. |
Revenue Recognition | Revenue Recognition — We adopted Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("New Revenue Standard") on January 1, 2018, using the modified retrospective method for transition, which resulted in a cumulative adjustment to opening retained earnings as of January 1, 2018. The majority of our revenues relate to customer orders that typically contain a single commitment of goods or services which have lead times under a year. Longer lead time, more complex contracts with our customers typically have multiple commitments of goods and services, including any combination of designing, developing, manufacturing, modifying, installing and commissioning of flow management equipment and providing services and parts related to the performance of such products. We recognize revenue when (or as) we satisfy a performance obligation by transferring control to a customer. Transfer of control is evaluated based on the customer’s ability to direct the use of and obtain substantially all of the benefits of a performance obligation. Revenue is recognized either over time or at a point in time, depending on the specific facts and circumstances for each contract, including the terms and conditions of the contract as agreed with the customer and the nature of the products or services to be provided. Our primary method for recognizing revenue over time is the percentage of completion (“POC”) method, whereby progress towards completion is measured by applying an input measure based on costs incurred to date relative to total estimated costs at completion. If control of the products and/or services does not transfer over time, then control transfers at a point in time. We determine the point in time that control transfers to a customer based on the evaluation of specific indicators, such as title transfer, risk of loss transfer, customer acceptance and physical possession. For a detailed discussion related to revenue recognition refer to Note 3. |
Cash and Cash Equivalents | Cash and Cash Equivalents — We place temporary cash investments with financial institutions and, by policy, invest in those institutions and instruments that have minimal credit risk and market risk. These investments, with an original maturity of three months or less when purchased, are classified as cash equivalents. They are highly liquid and principal values are not subject to significant risk of change due to interest rate fluctuations. |
Allowance for Doubtful Accounts and Credit Risk | Accounts Receivable, Allowance for Doubtful Accounts and Credit Risk — Trade accounts receivables are recorded at the invoiced amount and do not bear interest. We establish an allowance for expected credit losses on an aging schedule and according to historical losses as determined from our billings and collections history. Additionally, we consider factors that are specific to our customers’ credit risk such as financial difficulties, liquidity issues, insolvency, and country and political risk. We also consider both the current and forecasted direction of macroeconomic conditions at the reporting date in estimating expected credit losses. Receivables are written off against the allowance in the period when the receivable is deemed to be uncollectible. Subsequent recoveries of amounts previously written off are reflected as a reduction to credit impairment losses in the income statement. Credit risks are mitigated by the diversity of our customer base across many different geographic regions and industries and by performing creditworthiness analyses on our customers. Additionally, we mitigate credit risk through letters of credit and advance payments received from our customers. We do not believe that we have any other significant concentrations of credit risk. |
Inventories and Related Reserves | Inventories and Related Reserves — Inventories are stated at the lower of cost and net realizable value. Cost is determined by the first-in, first-out method. Reserves for excess and obsolete inventories are based upon our assessment of market conditions for our products determined by historical usage and estimated future demand. Due to the long life cycles of our products, we carry spare parts inventories that have historically low usage rates and provide reserves for such inventory based on demonstrated usage and aging criteria. |
Income Taxes, Deferred Taxes, Tax Valuation Allowances and Tax Reserves | Income Taxes, Deferred Taxes, Tax Valuation Allowances and Tax Reserves — We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are calculated using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. We record valuation allowances to reduce the carrying value of deferred tax assets to amounts that we expect are more likely than not to be realized. We assess existing deferred tax assets, net operating losses and tax credits by jurisdiction and expectations of our ability to utilize these tax attributes through a review of past, current and estimated future taxable income and establishment of tax planning strategies. We provide deferred taxes for the temporary differences associated with our investment in foreign subsidiaries that have a financial reporting basis that exceeds tax basis, unless we can assert permanent reinvestment in foreign jurisdictions. Financial reporting basis and tax basis differences in investments in foreign subsidiaries consist of both unremitted earnings and losses, as well as foreign currency translation adjustments. The amount of income taxes we pay is subject to ongoing audits by federal, state, and foreign tax authorities, which often result in proposed assessments. We establish reserves for open tax years for uncertain tax positions that may be subject to challenge by various tax authorities. The consolidated tax provision and related accruals include the impact of such reasonably estimable losses and related interest and penalties as deemed appropriate. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The determination is based on the technical merits of the position and presumes that each uncertain tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. |
Legal and Environmental Contingencies | Legal and Environmental Contingencies — Legal and environmental reserves are recorded based upon a case-by-case analysis of the relevant facts and circumstances and an assessment of potential legal obligations and costs. Amounts relating to legal and environmental liabilities are recorded when it is probable that a loss has been incurred and such loss is reasonably estimable. Assessments of legal and environmental costs are based on information obtained from our independent and in-house experts and our loss experience in similar situations. Estimates are updated as applicable when new information regarding the facts and circumstances of each matter becomes available. Legal fees associated with legal and environmental liabilities are expensed as incurred. We are a defendant in a number of lawsuits that seek to recover damages for personal injury allegedly resulting from exposure to asbestos-containing products formerly manufactured and/or distributed by heritage companies of the Company. We have estimated that the liability for pending and future claims not yet asserted, and which are probable and estimable, could be experienced through 2049, which represents the expected end of our asbestos liability exposure with no further ongoing claims expected beyond that date. This estimate is based on the Company's historical claim experience and estimates of the number and resolution cost of potential future claims that may be filed based on anticipated levels of unique plaintiff asbestos-related claims in the U.S. tort system against all defendants, the diminished volatility and consistency of observable claims data, the period of time that has elapsed since we stopped manufacturing products that contained encapsulated asbestos and an expected downward trend in claims due to the average age of our claimants. This estimate is not discounted to present value. In light of the uncertainties and variables inherent in the long-term projection of the total asbestos liability, as part of our ongoing review of asbestos claims, each year we will reassess the projected liability of unasserted asbestos claims to be filed through 2049, and we will continually reassess the time horizon over which a reasonable estimate of unasserted claims can be projected. We assess the sufficiency of the estimated liability for pending and future claims on an ongoing basis by evaluating actual experience regarding claims filed, settled and dismissed, and amounts paid in settlements. In addition to claims and settlement experience, we consider additional quantitative and qualitative factors such as changes in legislation, the legal environment and the Company's defense strategy. In connection with our ongoing review of asbestos-related claims, we have also reviewed the amount of potential insurance coverage for such claims, taking into account the remaining limits of such coverage, the number and amount of claims on our insurance from co-insured parties, ongoing litigation against the Company’s insurers, potential remaining recoveries from insolvent insurers, the impact of previous insurance settlements and coverage available from solvent insurers not party to the coverage litigation. Continuously, we review ongoing insurance coverage available for a significant amount of the potential future asbestos-related claims and in the future could secure additional insurance coverage as deemed necessary. The study from the Company's actuary, based on data as of September 30, 2020, provided for a range of possible future liability from approximately $80.1 million to $131.7 million. The Company does not believe any amount within the range of potential outcomes represents a better estimate than another given the many factors and assumptions inherent in the projections and therefore the Company has recorded the liability at the actuarial central estimate of approximately $99.5 million as of December 31, 2020. In addition, the Company has recorded estimated insurance receivables of approximately $69.5 million as of December 31, 2020. The amounts recorded for the asbestos-related liability and the related insurance receivables are based on facts known at the time and a number of assumptions. However, projecting future events, such as the number of new claims to be filed each year, the length of time it takes to defend, resolve, or otherwise dispose of such claims, coverage issues among insurers and the continuing solvency of various insurance companies, as well as the numerous uncertainties surrounding asbestos litigation in the United States, could cause the actual liability and insurance recoveries for us to be higher or lower than those projected or recorded. Additionally, we have claims pending against certain insurers that, if resolved more favorably than reflected in the recorded receivables, would result in discrete gains in the applicable year. Changes recorded in the estimated liability and estimated insurance recovery based on projections of asbestos litigation and corresponding insurance coverage, result in the recognition of additional expense or income. For a discussion pertaining to the activity related to asbestos claims refer to Note 16. |
Warranty Accruals | Warranty Accruals — Warranty obligations are based upon product failure rates, materials usage, service delivery costs, an analysis of all identified or expected claims and an estimate of the cost to resolve such claims. The estimates of expected claims are generally a factor of historical claims and known product issues. Warranty obligations based on these factors are adjusted based on historical sales trends for the preceding 24 months |
Insurance Accruals | Insurance Accruals — Insurance accruals are recorded for wholly or partially self-insured risks such as medical benefits and workers’ compensation and are based upon an analysis of our claim loss history, insurance deductibles, policy limits and other relevant factors that are updated annually and are included in accrued liabilities in our consolidated balance sheets. The estimates are based upon information received from actuaries, insurance company adjusters, independent claims administrators or other independent sources. Receivables from insurance carriers are estimated using our historical experience with insurance recovery rates and estimates of future recoveries, which include estimates of coverage and financial viability of our insurance carriers. Estimated receivables are included in accounts receivable, net and other assets, net, as applicable, in our consolidated balance sheets. |
Pension and Postretirement Obligations | Pension and Postretirement Obligations — Determination of pension and postretirement benefits obligations is based on estimates made by management in consultation with independent actuaries and investment advisors. Inherent in these valuations are assumptions including discount rates, expected rates of return on plan assets, retirement rates, mortality rates and rates of compensation increase and other factors all of which are reviewed annually and updated if necessary. Current market conditions, including changes in rates of return, interest rates and medical inflation rates, are considered in selecting these assumptions. Actuarial gains and losses and prior service costs are recognized in accumulated other comprehensive loss as they arise and we amortize these costs into net pension expense over the remaining expected service period. |
Property, Plant and Equipment and Depreciation | Property, Plant and Equipment and Depreciation — Property, plant and equipment are stated at historical cost, less accumulated depreciation. If asset retirement obligations exist, they are capitalized as part of the carrying amount of the asset and depreciated over the remaining useful life of the asset. The useful lives of leasehold improvements are the lesser of the remaining lease term or the useful life of the improvement. When assets are retired or otherwise disposed of, their costs and related accumulated depreciation are removed from the accounts and any resulting gains or losses are included in income from operations for the period. Depreciation is computed by the straight-line method based on the estimated useful lives of the depreciable assets, or in the case of assets under finance leases, over the related lease term. Generally, the estimated useful lives of the assets are: Buildings and improvements 10 to 40 years Machinery, equipment and tooling 3 to 14 years Software, furniture and fixtures and other 3 to 7 years Costs related to routine repairs and maintenance are expensed as incurred. |
Leases | Leases — We have operating and finance leases for certain manufacturing facilities, offices, service and quick response centers, machinery, equipment and automobiles. Our leases have remaining lease terms of up to 33 years. The terms and conditions of our leases may include options to extend or terminate the lease which are considered and included in the lease term when these options are reasonably certain of exercise. We determine if a contract is (or contains) a lease at inception by evaluating whether the contract conveys the right to control the use of an identified asset. For all classes of leased assets, we account for any non-lease components in the contract together with the related lease component in the same unit of account. For lease contracts containing more than one lease component, we allocate the contract consideration to each of the lease components on the basis of relative standalone prices in order to identify the lease payments for each lease component. |
Internally Developed Software | Internally Developed Software — We capitalize certain costs associated with the development of internal-use software. Generally, these costs are related to significant software development projects and are amortized over their estimated useful life, typically three three |
Intangible Assets | Intangible Assets — Intangible assets, excluding trademarks (which are considered to have an indefinite life), consist primarily of engineering drawings, patents, existing customer relationships, software, distribution networks and other items that are being amortized over their estimated useful lives generally ranging from four |
Valuation of Goodwill, Indefinite-Lived Intangible Assets and Other Long-Lived Assets | Valuation of Goodwill, Indefinite-Lived Intangible Assets and Other Long-Lived Assets — The value of goodwill and indefinite-lived intangible assets is tested for impairment as of December 31 each year or whenever events or circumstances indicate such assets may be impaired. The identification of our reporting units began at the operating segment level and considered whether components one level below the operating segment levels should be identified as reporting units for purpose of testing goodwill for impairment based on certain conditions. These conditions included, among other factors, (i) the extent to which a component represents a business and (ii) the aggregation of economically similar components within the operating segments and resulted in three reporting units. Other factors that were considered in determining whether the aggregation of components was appropriate included the similarity of the nature of the products and services, the nature of the production processes, the methods of distribution and the types of industries served. Accounting Standards Codification ("ASC") 350 allows an optional qualitative assessment, prior to a quantitative assessment test, to determine whether it is more likely than not that the fair value of a reporting unit exceeds its carrying amount. We generally do not attempt a qualitative assessment and proceed directly to the quantitative test. If the carrying value of a reporting unit exceeds its fair value, the goodwill of that reporting unit is impaired and an impairment loss is recorded equal to the excess of the carrying value over its fair value. We estimate the fair value of our reporting units based on an income approach, whereby we calculate the fair value of a reporting unit based on the present value of estimated future cash flows. A discounted cash flow analysis requires us to make various judgmental assumptions about future sales, operating margins, growth rates and discount rates, which are based on our budgets, business plans, economic projections, anticipated future cash flows and market participants. We did not record an impairment of goodwill in 2020, 2019 or 2018; however, the estimated fair value of our Pump reporting unit has reduced moderately during the year due to decreased broad-based capital spending resulting from the ongoing COVID-19 pandemic and to a lesser extent the heightened pricing pressure experienced in the oil and gas markets, both of which are anticipated to continue in the near to mid-term. The Pump reporting unit is a component of EPD reporting segment and is primarily focused on highly engineered custom and pre-configured pump products and systems. As of December 31, 2020, our Pump reporting unit had approximately $482.7 million of goodwill and an estimated fair value that exceeded its carrying value by approximately 46% as compared to approximately $468.8 million of goodwill and an estimated fair value that exceeded its carrying value by approximately 131% as of December 31, 2019. The key factors considered in determining the estimated fair value of our reporting units included the annual operating plan and forecasted operating results, successful execution of our current continuous improvement and identified strategic initiatives, a constant cost of capital, continued stabilization and mid to long-term improvement of the macro-economic conditions of the oil and gas market, and a relatively stable global gross domestic product. Although we have concluded that there is no impairment on the goodwill associated with our Pump reporting unit as of December 31, 2020, we will continue to closely monitor their performance and related market conditions for future indicators of potential impairment and reassess accordingly. We also considered our market capitalization in our evaluation of the fair value of our goodwill. Our market capitalization decreased as compared with 2019, however this did not indicate a potential impairment of our goodwill as of December 31, 2020. Impairment losses for indefinite-lived intangible assets are recognized whenever the estimated fair value is less than the carrying value. Fair values are calculated for trademarks using a "relief from royalty" method, which estimates the fair value of a trademark by determining the present value of estimated royalty payments that are avoided as a result of owning the trademark. This method includes judgmental assumptions about sales growth and discount rates that have a significant impact on the fair value and are substantially consistent with the assumptions used to determine the fair value of our reporting unit discussed above. We did not record a material impairment of our trademarks in 2020, 2019 or 2018. |
Deferred Loan Costs | Deferred Loan Costs — Deferred loan costs, consisting of fees and other expenses associated with debt financing, are amortized over the term of the associated debt using the effective interest method. Additional amortization is recorded in periods where optional prepayments on debt are made. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments — Our financial instruments are presented at fair value in our consolidated balance sheets, with the exception of our long-term debt. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied. Assets and liabilities recorded at fair value in our consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Hierarchical levels, as defined by ASC 820, "Fair Value Measurements and Disclosures," are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities. An asset or a liability’s categorization within the fair value hierarchy is based on the lowest level of significant input to its valuation. Hierarchical levels are as follows: Level I — Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level II — Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level III — Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. |
Derivatives and Hedging Activities | Derivatives and Hedging Activities — We have a foreign currency derivatives and hedging policy outlining the conditions under which we can enter into financial derivative transactions. We do not use derivative instruments for trading or speculative purposes. All derivative instruments are recognized on the balance sheet at their fair values. We employ a foreign currency economic hedging strategy to mitigate certain financial risks resulting from foreign currency exchange rate movements that impact foreign currency denominated receivables and payables, firm committed transactions and forecasted sales and purchases. The changes in the fair values are recognized immediately in other income (expense), net in the consolidated statements of income. See Note 9 for further discussion of forward exchange contracts. |
Foreign Currency Translation | Foreign Currency Translation — Assets and liabilities of our foreign subsidiaries are translated to U.S. dollars at exchange rates prevailing at the balance sheet date, while income and expenses are translated at average rates for each month. Translation gains and losses are reported as a component of accumulated other comprehensive loss. Transactional currency gains and losses arising from transactions in currencies other than our sites’ functional currencies are included in our consolidated results of operations. |
Stock-Based Compensation | Stock-Based Compensation — Stock-based compensation is measured at the grant-date fair value. The exercise price of stock option awards and the value of restricted share, restricted share unit and performance-based unit awards (collectively referred to as "Restricted Shares") are set at the closing price of our common stock on the New York Stock Exchange on the date of grant, which is the date such grants are authorized by our Board of Directors. Restricted share units and performance-based units refer to restricted awards that do not have voting rights and accrue dividends, and are forfeited if vesting does not occur. |
Earnings Per Share | Earnings Per Share — We use the two-class method of calculating Earnings Per Share ("EPS"), which determines earnings per share for each class of common stock and participating security as if all earnings for the period had been distributed. Unvested restricted share awards that earn non-forfeitable dividend rights qualify as participating securities and, accordingly, are included in the basic computation as such. Our unvested Restricted Shares participate on an equal basis with common shares; therefore, there is no difference in undistributed earnings allocated to each participating security. |
Research and Development Expense | Research and Development Expense — Research and development costs are charged to expense when incurred. Aggregate research and development costs included in SG&A were $36.1 million, $42.0 million and $39.6 million in 2020, 2019 and 2018, respectively. Costs incurred for research and development primarily include salaries and benefits and consumable supplies, as well as rent, professional fees, utilities and the depreciation of property and equipment used in research and development activities. |
Accounting Developments | Accounting Developments Pronouncements Implemented In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, "Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments" ("CECL"). The ASU requires, among other things, the use of a new current expected credit loss model in order to determine an allowance for expected credit losses with respect to financial assets and instruments held. The CECL model requires that we estimate the lifetime of an expected credit loss for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. On January 1, 2020, we adopted the ASU on a prospective basis to determine our allowance for credit losses in accordance with the requirements of Topic 326, and we modified our accounting policy and processes to facilitate this approach. As a result of the adoption of the ASU, we recorded a noncash cumulative effect after-tax adjustment to retained earnings of $7.3 million on ou r opening consolidated balance shee t. Our primary exposure to financial assets that are within the scope of CECL are trade receivables and contract assets. For these financial assets, we record an allowance for expected credit losses that, when deducted from the gross asset balance, presents the net amount expected to be collected. We estimate the allowance based on an aging schedule and according to historical losses as determined from our billings and collections history. Additionally, we adjust the allowance for factors that are specific to our customers’ credit risk such as financial difficulties, liquidity issues, insolvency, and country and political risk. We also consider both the current and forecasted direction of macroeconomic conditions at the reporting date. The CECL model requires consideration of reasonable and supportable forecasts of future economic conditions in the estimate of expected credit losses. We adjust the allowance and recognize adjustments in the income statement each period. Trade receivables are written off against the allowance in the period when the receivable is deemed to be uncollectible. Subsequent recoveries of amounts previously written off are reflected as a reduction to credit impairment losses in the income statement. Our allowance for expected credit losses for short-term receivables as of December 31, 2020, wa s $75.2 million, compared to $53.4 million as of December 31, 2019. The 2020 activity included $6.9 million for the adoption of the CECL model at January 1, 2020 and $14.9 million for current period adjustments. Our long-term receivables, included in other assets, net, represent receivables with collection periods longer than 12 months and the balance primarily consists of amounts to be collected from insurance companies and fully-reserved receivables associated with the national oil company in Venezuela. As of December 31, 2020 , we had $105.3 million of long-term receivables, compared to $140.0 million as of December 31, 2019. Our allowance for expected credit losses for long-term receivables as of December 31, 2020 was $96.1 million, compared to $101.4 million as of December 31, 2019. We have exposure to credit losses from off-balance sheet exposures, such as financial guarantees and standby letters of credit, where we believe the risk of loss is immaterial to our financial statements as of December 31, 2020. In January 2017, the FASB issued ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The amendments in this ASU allow companies to apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The amendments of the ASU are effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Our adoption of ASU No. 2017-04 effective January 1, 2020 did not have an impact on our consolidated financial condition and results of operations. In August 2018, the FASB issued ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement." The amendments of the ASU modify the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosure requirements for assets and liabilities measured at fair value in the statement of financial position or disclosed in the notes to the financial statements. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted for the removed disclosures and delayed adoption until fiscal year 2020 permitted for the new disclosures. The removed and modified disclosures were adopted on a retrospective basis and the new disclosures were adopted on a prospective basis. Our adoption of ASU No. 2018-13 effective January 1, 2020 did not have an impact on our disclosures. In August 2018, the FASB issued ASU No. 2018-14, "Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans." The ASU amends the disclosure requirements by adding, clarifying, or removing certain disclosures for sponsor defined benefit pension or other postretirement plans. The amendments are effective for fiscal years ending after December 15, 2020 and the amendments should be applied retrospectively to all periods presented. We have adopted the standard and the required disclosure are reflected on our annual disclosures of the Company's noncontributory defined benefit pension plans. In August 2018, the FASB issued ASU No. 2018-15, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." The ASU addresses how entities should account for costs associated with implementing a cloud computing arrangement that is considered a service contract. Per the amendments of the ASU, implementation costs incurred in a cloud computing arrangement that is a service contract should be accounted for in the same manner as implementation costs incurred to develop or obtain software for internal use as prescribed by guidance in ASC 350-40. The ASU requires that implementation costs incurred in a cloud computing arrangement be capitalized rather than expensed. Further, the ASU specifies the method for the amortization of costs incurred during implementation, and the manner in which the unamortized portion of these capitalized implementation costs should be evaluated for impairment. The ASU also provides guidance on how to present such implementation costs in the financial statements and also creates additional disclosure requirements. The amendments are effective for fiscal years beginning after December 15, 2019. The amendments in this ASU can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. Our adoption of ASU No. 2018-15 effective January 1, 2020 on a prospective basis did not have a material impact on our consolidated financial condition and results of operations. In October 2018, the FASB issued ASU No. 2018-17, "Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities ("VIEs")." The standard reduces the cost and complexity of financial reporting associated with VIEs. The new standard amends the guidance for determining whether a decision-making fee is a VIE. The amendments require organizations to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety as currently required in U.S. Generally Accepted Accounting Principles ("GAAP"). The amendments of this ASU are effective for fiscal years beginning after December 15, 2019. Our adoption of ASU No. 2018-17 effective January 1, 2020 did not have an impact on our consolidated financial condition and results of operations. In November 2018, the FASB issued ASU No. 2018-18, "Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606." The ASU clarifies the interaction between the guidance for certain collaborative arrangements and ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)," which we adopted January 1, 2018. The amendments of the ASU provide guidance on how to assess whether certain transactions between collaborative arrangement participants should be accounted for within ASU No. 2014-09. The ASU also provides more comparability in the presentation of revenue for certain transactions between collaborative arrangement participants. Parts of the collaborative arrangement that are not in the purview of the revenue recognition standard should be presented separately. The amendments are effective for fiscal years beginning after December 15, 2019. Our adoption of ASU No. 2018-18 effective January 1, 2020 did not have an impact on our consolidated financial condition and results of operations. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes.” The ASU intends to simplify various aspects related to accounting for income taxes and removes certain exceptions to the general principles in the standard. Additionally, the ASU clarifies and amends existing guidance to improve consistent application of its requirements. We early adopted ASU No. 2019-12 effective January 1, 2020 on a prospective basis and the adoption did not have an impact on our consolidated financial condition and results of operations. Pronouncements Not Yet Implemented In March of 2020, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of The Effects of Reference Rate Reform on Financial Reporting." The ASU provides guidance designed to enable the process for migrating away from reference rates such as the London Interbank Offered Rate ("LIBOR") and others to new reference rates. Further, the amendments of the ASU provides optional expedients and exceptions for applying U.S. GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. The amendments are effective as of March 12, 2020 through December 31, 2022 and should be applied prospectively to all periods presented. We have evaluated the impact of ASU No. 2020-04 and other related ASUs, and we anticipate that our adoption of these ASUs will not have a material impact on our consolidated financial condition and results of operations. In October 2020, the FASB issued ASU No. 2020-10, "Codification Improvements: Amendments to the FASB Accounting Standards Codification." The amendments in this ASU do not change GAAP and, therefore, are not expected to result in a significant change in practice. Rather, the amendments are intended to improve codification guidance and disclosure requirements in Company's financial statements and notes to the financial statements. The amendments are effective for annual periods beginning after December 15, 2020 and the amendments should be applied retrospectively to all periods presented. We are currently evaluating the impact of ASU 2010-10 and we anticipate that our adoption of this ASU will not have a material impact on our consolidated financial condition, results of operations or net cash flows. |
Significant Accounting Polici_3
Significant Accounting Policies and Accounting Developments (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Assets | Generally, the estimated useful lives of the assets are: Buildings and improvements 10 to 40 years Machinery, equipment and tooling 3 to 14 years Software, furniture and fixtures and other 3 to 7 years |
Revision to Previously Report_2
Revision to Previously Reported Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The following table presents the impact of correcting the errors previously discussed on the affected line items of our consolidated balance sheet as of December 31, 2019: December 31, 2019 (Amounts in thousands) As Reported Adjustments As Revised Prepaid expenses and other 105,101 1,377 106,478 Total current assets 2,505,370 1,377 2,506,747 Property, plant and equipment, net of accumulated depreciation (1) 572,175 (8,611) 563,564 Other assets, net of allowance for expected credit losses (2) 227,185 25,869 253,054 Total assets 4,919,642 18,635 4,938,277 Contract liabilities (3) 216,541 4,554 221,095 Total current liabilities 1,112,888 4,554 1,117,442 Retirement obligations and other liabilities (4) 473,295 57,699 530,994 Retained earnings (5) 3,695,862 (43,618) 3,652,244 Total Flowserve Corporation shareholders’ equity 1,790,357 (43,618) 1,746,739 Total equity 1,815,959 (43,618) 1,772,341 Total liabilities and equity $ 4,919,642 $ 18,635 $ 4,938,277 _______________________________________ (1) Adjustment related to the misclassification of Software as a Service arrangements as property, plant and equipment rather than other assets, net, as prescribed by ASU 2018-15. (2) Adjustment related to the associated receivables for expected insurance proceeds for asbestos settlements and defense costs. (3) Adjustment related to one of our sites for correction in contract position caused by errors in estimated costs under the over time revenue recognition model. (4) Adjustment primarily relates to IBNR reserves associated with unasserted asbestos claims. (5) The adjustments to retained earnings represents the cumulative effect of the immaterial errors that were corrected in periods prior to and through December 31, 2019. The following table presents the impact of correcting the errors previously discussed on the affected line items of our consolidated statement of income for the year ended December 31, 2019: (Amounts in thousands) Year Ended December 31, 2019 As Reported Adjustments As Revised Sales (1) $ 3,944,850 $ (5,153) $ 3,939,697 Cost of sales (2,649,480) (874) (2,650,354) Gross profit 1,295,370 (6,027) — 1,289,343 Selling, general and administrative expense (2) (899,813) (13,390) (913,203) Operating income 406,040 (19,417) 386,623 Earnings before income taxes 341,850 (19,417) 322,433 Provision for income taxes (3) (80,070) 4,577 (75,493) Net earnings, including noncontrolling interests 261,780 (14,840) 246,940 Net earnings attributable to Flowserve Corporation $ 253,668 $ (14,840) $ 238,828 Net earnings per share attributable to Flowserve Corporation common shareholders: Basic $ 1.94 $ (0.12) $ 1.82 Diluted 1.93 (0.12) 1.81 ______________________________________ (1) Adjustment related to one of our sites related to errors in estimated costs under the over time revenue recognition model. (2) Adjustment primarily related to asbestos settlement and defense costs from insurance coverage and expense for related legal fees. (3) Adjustment related to tax impacts of the matters described in notes (1) and (2), above. The following table presents the impact of correcting the errors previously discussed on the affected line items of our consolidated statement of income for the year ended December 31, 2018: (Amounts in thousands) Year Ended December 31, 2018 As Reported Adjustments As Revised Sales (1) $ 3,832,666 $ 3,033 $ 3,835,699 Gross profit 1,187,836 3,033 — 1,190,869 Selling, general and administrative expense (2) (943,714) (22,870) (966,584) Operating income 247,538 (19,837) 227,701 Earnings before income taxes 176,274 (19,837) 156,437 Provision for income taxes (3) (51,224) 4,674 (46,550) Net earnings, including noncontrolling interests 125,050 (15,163) 109,887 Net earnings attributable to Flowserve Corporation $ 119,671 $ (15,163) $ 104,508 Net earnings per share attributable to Flowserve Corporation common shareholders: Basic $ 0.91 $ (0.11) $ 0.80 Diluted 0.91 (0.11) 0.80 _______________________________________ (1) Adjustment related to one of our sites related to errors in estimated costs under the over time revenue recognition model. (2) Adjustment primarily related to asbestos settlement and defense costs from insurance coverage and expense for related legal fees and broad-based annual incentive compensation. Year Ended December 31, 2019 (Amounts in thousands) As Reported Adjustments As Revised Net cash flows provided (used) by operating activities (1) $ 312,741 $ 11,356 $ 324,097 Net cash flows provided (used) by investing activities (1) (23,837) (9,546) (33,383) Net cash flows provided (used) by financing activities (229,654) (1,810) (231,464) Cash and cash equivalents at end of period (1) 670,980 — 670,980 _______________________________________ |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Disaggregation of Revenue | The following table presents our customer revenues disaggregated by revenue source: December 31, 2020 (Amounts in thousands) FPD FCD Total Original Equipment $ 1,091,906 $ 808,585 $ 1,900,491 Aftermarket 1,581,799 245,844 1,827,643 $ 2,673,705 $ 1,054,429 $ 3,728,134 December 31, 2019 (Amounts in thousands) FPD FCD Total Original Equipment $ 994,719 $ 967,271 $ 1,961,990 Aftermarket 1,709,726 267,981 1,977,707 $ 2,704,445 $ 1,235,252 $ 3,939,697 December 31, 2018 (Amounts in thousands) FPD FCD Total Original Equipment $ 992,162 $ 946,926 $ 1,939,088 Aftermarket 1,628,326 268,285 1,896,611 $ 2,620,488 $ 1,215,211 $ 3,835,699 Our customer sales are diversified geographically. The following table presents our revenues disaggregated by geography, based on the shipping addresses of our customers: December 31, 2020 (Amounts in thousands) FPD FCD Total North America(1) $ 1,039,285 $ 429,572 $ 1,468,857 Latin America(1) 191,517 26,393 217,910 Middle East and Africa 359,403 110,539 469,942 Asia Pacific 537,792 270,238 808,030 Europe 545,708 217,687 763,395 $ 2,673,705 $ 1,054,429 $ 3,728,134 December 31, 2019 (Amounts in thousands) FPD FCD Total North America(1) $ 1,085,627 $ 542,182 $ 1,627,809 Latin America(1) 202,247 28,899 231,146 Middle East and Africa 355,937 98,959 454,896 Asia Pacific 499,932 315,886 815,818 Europe 560,702 249,326 810,028 $ 2,704,445 $ 1,235,252 $ 3,939,697 December 31, 2018 (Amounts in thousands) FPD FCD Total North America(1) $ 1,037,637 $ 541,378 $ 1,579,015 Latin America(1) 219,376 22,405 241,781 Middle East and Africa 329,484 138,240 467,724 Asia Pacific 502,559 281,080 783,639 Europe 531,432 232,108 763,540 $ 2,620,488 $ 1,215,211 $ 3,835,699 _____________________________________ (1) North America represents United States and Canada; Latin America includes Mexico. |
Contract with Customer, Asset and Liability | The following table presents opening and closing balances of contract assets and contract liabilities, current and long-term, for the years ended December 31, 2020 and 2019: ( Amounts in thousands) Contract Assets, net (Current) Long-term Contract Assets, net(1) Contract Liabilities (Current) Long-term Contract Liabilities(2) Balance — January 1, 2019 $ 229,297 $ 10,967 $ 201,702 $ 1,370 Revenue recognized that was included in contract liabilities at the beginning of the period — — (125,257) — Increase due to revenue recognized in the period in excess of billings 835,147 — — — Increase due to billings arising during the period in excess of revenue recognized — — 135,679 290 Amounts transferred from contract assets to receivables (785,279) (1,747) — — Currency effects and other, net (6,251) 60 8,971 (8) Balance — December 31, 2019 $ 272,914 $ 9,280 $ 221,095 $ 1,652 Revenue recognized that was included in contract liabilities at the beginning of the period — — (180,522) — Increase due to revenue recognized in the period in excess of billings 925,244 — — — Increase due to billings arising during the period in excess of revenue recognized — — 140,391 — Amounts transferred from contract assets to receivables (917,885) (1,666) — — Currency effects and other, net (2,539) (6,475) 13,263 (830) Balance — December 31, 2020 $ 277,734 $ 1,139 $ 194,227 $ 822 _____________________________________ (1) Included in other assets, net. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019 are as follows: FPD FCD Total (Amounts in thousands) Balance as of December 31, 2018 $ 790,139 $ 407,501 $ 1,197,640 Currency translation and other (3,509) (1,121) (4,630) Balance as of December 31, 2019 $ 786,630 $ 406,380 $ 1,193,010 Currency translation and other 18,425 13,451 31,876 Balance as of December 31, 2020 $ 805,055 $ 419,831 $ 1,224,886 |
Schedule of Changes in Intangible Assets | The following table provides information about our intangible assets for the years ended December 31, 2020 and 2019: December 31, 2020 December 31, 2019 Useful Ending Accumulated Ending Accumulated (Amounts in thousands, except years) Finite-lived intangible assets: Engineering drawings(1) 10-22 $ 90,638 $ (83,620) $ 89,490 $ (78,854) Existing customer relationships(2) 5-10 85,214 (62,796) 81,844 (53,468) Patents 9-16 27,015 (27,015) 26,132 (26,132) Other 4-40 93,923 (43,633) 92,920 (40,149) $ 296,790 $ (217,064) $ 290,386 $ (198,603) Indefinite-lived intangible assets(3) $ 90,355 $ (1,585) $ 90,607 $ (1,585) ____________________________________ (1) Engineering drawings represent the estimated fair value associated with specific acquired product and component schematics. (2) Existing customer relationships acquired prior to 2011 had a useful life of five years . (3) Accumulated amortization for indefinite-lived intangible assets relates to amounts recorded prior to the implementation date of guidance issued in ASC 350. |
Schedule of Actual and Estimated Future Amortization of Finite-Lived Intangible Assets | The following schedule outlines actual amortization expense recognized during 2020 and an estimate of future amortization based upon the finite-lived intangible assets owned at December 31, 2020: Amortization (Amounts in thousands) Actual for year ended December 31, 2020 $ 13,645 Estimated for year ended December 31, 2021 14,313 Estimated for year ended December 31, 2022 12,298 Estimated for year ended December 31, 2023 9,283 Estimated for year ended December 31, 2024 4,286 Estimated for year ended December 31, 2025 2,338 Thereafter 37,208 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Inventories, net consisted of the following: December 31, 2020 2019 (Amounts in thousands) Raw materials $ 321,600 $ 328,080 Work in process 210,174 192,993 Finished goods 221,532 218,408 Less: Excess and obsolete reserve (86,078) (78,644) Inventories, net $ 667,228 $ 660,837 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Summary of Other Lease Information | Other information related to our leases is as follows: December 31, (Amounts in thousands) 2020 2019 Finance Leases: ROU assets recorded under finance leases $ 27,624 $ 19,606 Accumulated depreciation associated with finance leases (9,463) (7,551) Total finance leases ROU assets, net(1) $ 18,161 $ 12,055 Total finance leases liabilities(2) $ 18,287 $ 11,788 The costs components of operating and finance leases are as follows: December 31, (Amounts in thousands) 2020 2019 Operating Lease Costs: Fixed lease expense(3) $ 57,050 $ 57,450 Variable lease expense(3) 7,299 6,492 Total operating lease expense $ 64,349 $ 63,942 Finance Lease Costs: Depreciation of finance lease ROU assets(3) $ 5,392 $ 4,729 Interest on lease liabilities(4) 646 352 Total finance lease expense $ 6,038 $ 5,081 _____________________ (1) Included in property plant and equipment, net (2) Included in debt due within one year and long-term debt due after one year, accordingly (3) Included in cost of sales and selling, general and administrative expense, accordingly (4) Included in interest expense |
Schedule of Supplemental Cash Flows Information | Supplemental cash flows information related to our leases is as follows: December 31, (Amounts in thousands, except lease term and discount rate) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases(1) $ 66,478 $ 64,725 Financing cash flows from finance leases(2) 4,704 4,465 ROU assets obtained in exchange for lease obligations: Operating leases $ 62,425 $ 14,569 Finance leases 13,124 10,615 Weighted average remaining lease term (in years) Operating leases 9 years 9 years Finance leases 7 years 3 years Weighted average discount rate (percent) Operating leases 4.2 % 4.5 % Finance leases 3.5 % 3.6 % _____________________ (1) Included in our consolidated statement of cash flows, operating activities, prepaid expenses and other assets, net and retirement obligations and other (2) Included in our consolidated statement of cash flows, financing activities, payments under other financing arrangements |
Schedule of Future Finance Lease Payments | Future undiscounted lease payments under operating and finance leases as of December 31, 2020, were as follows (amounts in thousands): Year ending December 31, Operating Finance Leases 2021 42,570 5,539 2022 36,596 4,522 2023 30,458 2,996 2024 26,334 1,521 2025 20,977 939 Thereafter 94,991 5,265 Total future minimum lease payments $ 251,926 $ 20,782 Less: Imputed interest (40,690) (2,495) Total $ 211,236 $ 18,287 Other current liabilities $ 34,990 $ — Operating lease liabilities 176,246 — Debt due within one year — 5,354 Long-term debt due after one year — 12,933 Total $ 211,236 $ 18,287 |
Schedule of Future Operating Lease Payments | Future undiscounted lease payments under operating and finance leases as of December 31, 2020, were as follows (amounts in thousands): Year ending December 31, Operating Finance Leases 2021 42,570 5,539 2022 36,596 4,522 2023 30,458 2,996 2024 26,334 1,521 2025 20,977 939 Thereafter 94,991 5,265 Total future minimum lease payments $ 251,926 $ 20,782 Less: Imputed interest (40,690) (2,495) Total $ 211,236 $ 18,287 Other current liabilities $ 34,990 $ — Operating lease liabilities 176,246 — Debt due within one year — 5,354 Long-term debt due after one year — 12,933 Total $ 211,236 $ 18,287 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation | We recorded stock-based compensation for Restricted Shares as follows: Year Ended December 31, 2020 2019 2018 (Amounts in millions) Stock-based compensation expense $ 27.3 $ 23.9 $ 19.9 Related income tax benefit (6.2) (5.4) (4.5) Net stock-based compensation expense $ 21.1 $ 18.5 $ 15.4 |
Information Regarding Restricted Shares | The following table summarizes information regarding Restricted Shares: Year Ended December 31, 2020 Shares Weighted Average Number of unvested Restricted Shares: Outstanding — beginning of year 1,690,600 $ 46.71 Granted 730,065 46.56 Vested (587,301) 45.02 Canceled (459,707) 48.47 Outstanding — ending of year 1,373,657 $ 46.76 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Forward Exchange Contracts not Designated as Hedging Instruments | The fair values of foreign exchange contracts are summarized below: Year Ended December 31, 2020 2019 (Amounts in thousands) Current derivative assets $ 2,857 $ 892 Noncurrent derivative assets 249 15 Current derivative liabilities 682 3,418 Noncurrent derivative liabilities — 8 |
Impact of Net Changes in Fair Values of Forward Exchange Contracts Not Designated as Hedging Instruments | The impact of net changes in the fair values of foreign exchange contracts are summarized below: Year Ended December 31, 2020 2019 2018 (Amounts in thousands) Loss recognized in income $ (10,294) $ (6,495) $ (3,154) |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The cumulative net investment hedge loss, net of deferred taxes, under cross-currency swap recorded in accumulated other comprehensive loss ("AOCL") on our consolidated balance sheet are summarized below: Year Ended December 31, 2020 2019 2018 (Amounts in thousands) Loss recognized in AOCL $ (13,836) $ — $ — Year Ended December 31, 2020 2019 2018 (Amounts in thousands) Loss recorded in AOCL (34,973) (12,084) (17,164) |
Details of Certain Consolidat_2
Details of Certain Consolidated Balance Sheet Captions (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Details of Certain Consolidated Balance Sheet Captions [Abstract] | |
Accounts Receivable, net | Accounts receivable, net were: December 31, 2020 2019 (Amounts in thousands) Trade accounts receivables $ 808,459 $ 830,919 Less: allowance for doubtful accounts (59,280) (47,269) Other short-term receivables 20,179 18,031 Less: allowance for doubtful accounts (15,896) (6,143) Accounts receivable, net $ 753,462 $ 795,538 |
Property, Plant and Equipment, net | Property, plant and equipment, net were: December 31, 2020 2019 (Amounts in thousands) Land $ 65,894 $ 64,778 Buildings and improvements 446,008 419,454 Machinery, equipment and tooling 699,256 666,376 Software, furniture and fixtures and other 439,063 427,866 Gross property, plant and equipment 1,650,221 1,578,474 Less: accumulated depreciation (1,093,348) (1,014,910) Property, plant and equipment, net $ 556,873 $ 563,564 |
Accrued Liabilities | Accrued liabilities were: December 31, 2020 2019 (Amounts in thousands) Wages, compensation and other benefits $ 225,133 $ 192,354 Commissions and royalties 22,847 23,027 Warranty costs and late delivery penalties 27,757 30,625 Sales and use tax 29,067 18,146 Income tax 31,378 20,018 Other 127,040 117,215 Accrued liabilities $ 463,222 $ 401,385 |
Retirement Obligations and Other Liabilities | Retirement obligations and other liabilities were: December 31, 2020 2019 (Amounts in thousands) Pension and postretirement benefits $ 225,994 $ 199,603 Deferred taxes 84,345 149,633 Operating lease liabilities 176,246 151,523 Legal and environmental 101,203 99,744 Uncertain tax positions and other tax liabilities 50,259 42,086 Other 54,286 39,928 Retirement obligations and other liabilities $ 692,333 $ 682,517 |
Debt and Finance Lease Obliga_2
Debt and Finance Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt Including Finance Lease Obligations | Debt, including finance lease obligations, consisted of: December 31, 2020 2019 (Amounts in thousands) 1.25% EUR Senior Notes due March 17, 2022, net of unamortized discount and debt issuance costs of $1,070 and $2,653 at December 31, 2020 and 2019, respectively $ 410,243 $ 557,847 3.50% USD Senior Notes due September 15, 2022, net of unamortized discount and debt issuance costs of $1,235 and $1,924 at December 31, 2020 and 2019, respectively 498,765 498,076 4.00% USD Senior Notes due November 15, 2023, net of unamortized discount and debt issuance costs of $1,345 and $1,777 at December 31, 2020 and 2019, respectively 298,655 298,223 3.50% USD Senior Notes due October 1, 2030, net of unamortized discount and debt issuance costs of $6,147 o f December 31, 2020 493,853 — Finance lease obligations and other borrowings 25,390 23,103 Debt and finance lease obligations 1,726,906 1,377,249 Less amounts due within one year 8,995 11,272 Total debt due after one year $ 1,717,911 $ 1,365,977 |
Schedule Maturities of the Senior Credit Facility as well as our Senior Notes and other debt | Scheduled maturities of our Senior Notes and other debt, are (amounts in thousands): 2021 $ 8,995 2022 925,403 2023 298,655 Thereafter 493,853 Total $ 1,726,906 |
Pension and Postretirement Be_2
Pension and Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Assumptions Related to Plans | The following are assumptions related to the U.S. defined benefit pension plans: Year Ended December 31, 2020 2019 2018 Weighted average assumptions used to determine Benefit Obligations: Discount rate 2.62 % 3.41 % 4.34 % Rate of increase in compensation levels 3.63 3.50 3.50 Weighted average assumptions used to determine net pension expense: Long-term rate of return on assets 6.00 % 6.00 % 6.00 % Discount rate 3.41 4.34 3.63 Rate of increase in compensation levels 3.56 3.50 4.01 Weighted-average interest crediting rates 3.79 % 3.79 % 3.79 % The following are assumptions related to the non-U.S. defined benefit pension plans: Year Ended December 31, 2020 2019 2018 Weighted average assumptions used to determine Benefit Obligations: Discount rate 1.23 % 1.61 % 2.42 % Rate of increase in compensation levels 3.11 3.12 3.28 Weighted average assumptions used to determine net pension expense: Long-term rate of return on assets 2.37 % 3.37 % 3.62 % Discount rate 1.61 2.42 2.25 Rate of increase in compensation levels 3.12 3.28 3.25 Weighted-average interest crediting rates 1.00 % 1.00 % 1.00 % The following are assumptions related to postretirement benefits: Year Ended December 31, 2020 2019 2018 Weighted average assumptions used to determine Benefit Obligation: Discount rate 2.32 % 3.27 % 4.20 % Weighted average assumptions used to determine net expense: Discount rate 3.27 % 4.20 % 3.48 % |
Components of Net Periodic Cost for Pension and Postretirement Benefits | Net pension expense for the U.S. defined benefit pension plans (including both qualified and non-qualified plans) was: Year Ended December 31, 2020 2019 2018 (Amounts in thousands) Service cost $ 25,893 $ 23,245 $ 22,195 Interest cost 15,100 17,584 15,789 Expected return on plan assets (25,794) (25,645) (25,704) Settlement loss (gain) 128 — (462) Amortization of unrecognized prior service cost 184 164 164 Amortization of unrecognized net loss 6,977 3,675 5,514 U.S. net pension expense $ 22,488 $ 19,023 $ 17,496 Net pension expense for non-U.S. defined benefit pension plans was: Year Ended December 31, 2020 2019 2018 (Amounts in thousands) Service cost $ 7,052 $ 5,728 $ 7,208 Interest cost 6,572 8,867 8,970 Expected return on plan assets (5,018) (7,535) (8,747) Amortization of unrecognized net loss 4,315 2,933 3,626 Amortization of unrecognized prior service cost (benefit) 262 265 33 Settlement loss (gain) and other 708 859 (521) Non-U.S. net pension expense $ 13,891 $ 11,117 $ 10,569 Net postretirement benefit cost for postretirement medical plans was: Year Ended December 31, 2020 2019 2018 (Amounts in thousands) Interest cost $ 596 $ 754 $ 779 Amortization of unrecognized prior service cost 122 122 122 Amortization of unrecognized net gain (132) (215) (764) Net postretirement benefit expense $ 586 $ 661 $ 137 |
Schedule of Funded Status | The following summarizes the net pension (liability) asset for U.S. plans: December 31, 2020 2019 (Amounts in thousands) Plan assets, at fair value $ 477,680 $ 482,553 Benefit Obligation (487,418) (471,462) Funded status $ (9,738) $ 11,091 The following summarizes the net pension liability for non-U.S. plans: December 31, 2020 2019 (Amounts in thousands) Plan assets, at fair value $ 287,308 $ 262,559 Benefit Obligation (469,998) (425,617) Funded status $ (182,690) $ (163,058) The following summarizes the accrued postretirement benefits liability for the postretirement medical plans: December 31, 2020 2019 (Amounts in thousands) Postretirement Benefit Obligation $ 18,648 $ 18,862 Funded status $ (18,648) $ (18,862) |
Schedule of Amounts Recognized in Balance Sheet | The following summarizes amounts recognized in the balance sheet for U.S. plans: December 31, 2020 2019 (Amounts in thousands) Noncurrent assets $ — $ 16,396 Current liabilities (233) (348) Noncurrent liabilities (9,505) (4,957) Funded status $ (9,738) $ 11,091 The following summarizes amounts recognized in the balance sheet for non-U.S. plans: December 31, 2020 2019 \ (Amounts in thousands) Noncurrent assets $ 18,910 $ 16,379 Current liabilities (8,121) (7,609) Noncurrent liabilities (193,479) (171,828) Funded status $ (182,690) $ (163,058) The following summarizes amounts recognized in the balance sheet for postretirement Benefit Obligation: December 31, 2020 2019 (Amounts in thousands) Current liabilities $ (2,342) $ (2,370) Noncurrent liabilities (16,306) (16,492) Funded status $ (18,648) $ (18,862) |
Schedule of Benefit Obligations and Accumulated Benefit Obligations | The following is a summary of the changes in the U.S. defined benefit plans’ pension obligations: December 31, 2020 2019 (Amounts in thousands) Balance — January 1 $ 471,462 $ 432,595 Service cost 25,893 23,245 Interest cost 15,100 17,584 Plan amendments and settlements (953) 276 Actuarial losses (1) 29,166 31,214 Benefits paid (53,250) (33,452) Balance — December 31 $ 487,418 $ 471,462 Accumulated benefit obligations at December 31 $ 486,501 $ 470,643 _______________________________________ (1) The actuarial losses in 2020 and 2019 primarily reflect the impact of changes in the discount rate. The following is a reconciliation of the non-U.S. plans’ defined benefit pension obligations: December 31, 2020 2019 (Amounts in thousands) Balance — January 1 $ 425,617 $ 376,649 Service cost 7,052 5,728 Interest cost 6,572 8,867 Employee contributions 80 78 Settlements and other (2,701) (3,713) Actuarial losses (1) 23,781 48,888 Net benefits and expenses paid (15,700) (14,526) Currency translation impact(2) 25,297 3,646 Balance — December 31 $ 469,998 $ 425,617 Accumulated benefit obligations at December 31 $ 446,097 $ 404,035 _______________________________________ (1) The 2019 actuarial loss primarily reflects the decrease in the discount rates for all plans. The following is a reconciliation of the postretirement Benefit Obligation: December 31, 2020 2019 (Amounts in thousands) Balance — January 1 $ 18,862 $ 18,810 Interest cost 596 754 Employee contributions 916 964 Medicare subsidies receivable 7 14 Actuarial losses 2,434 2,222 Net benefits and expenses paid (4,167) (3,902) Balance — December 31 $ 18,648 $ 18,862 |
Schedule of Expected Cash Activity | The following table summarizes the expected cash benefit payments for the U.S. defined benefit pension plans in the future (amounts in millions): 2021 $ 43.3 2022 42.2 2023 42.8 2024 41.2 2025 42.4 2026-2030 196.3 The following table summarizes the expected cash benefit payments for the non-U.S. defined benefit plans in the future (amounts in millions): 2021 $ 17.6 2022 18.1 2023 18.1 2024 19.1 2025 18.7 2026-2030 100.3 The following presents expected benefit payments for future periods (amounts in millions): Expected 2021 $ 2.4 2022 2.2 2023 2.0 2024 1.8 2025 1.6 2026-2030 6.1 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table shows the change in accumulated other comprehensive loss attributable to the components of the net cost and the change in Benefit Obligations for U.S. plans, net of tax: December 31, 2020 2019 (Amounts in thousands) Balance — January 1 $ (49,510) $ (62,018) Amortization of net loss 5,336 2,809 Amortization of prior service cost 140 125 Net (loss) gain arising during the year (5,328) 9,785 Settlement gain 98 — Prior service cost arising during the year (57) (211) Balance — December 31 $ (49,321) $ (49,510) Amounts recorded in accumulated other comprehensive loss consist of: December 31, 2020 2019 (Amounts in thousands) Unrecognized net loss $ (48,460) $ (48,578) Unrecognized prior service cost (861) (932) Accumulated other comprehensive loss, net of tax $ (49,321) $ (49,510) The following table shows the change in accumulated other comprehensive loss attributable to the components of the net cost and the change in Benefit Obligations for non-U.S. plans, net of tax: December 31, 2020 2019 (Amounts in thousands) Balance — January 1 $ (89,337) $ (62,088) Amortization of net loss 4,410 2,946 Net losses arising during the year (7,432) (29,910) Settlement losses 681 746 Prior service cost arising during the year (467) — Currency translation impact and other (5,101) (1,031) Balance — December 31 $ (97,246) $ (89,337) Amounts recorded in accumulated other comprehensive loss consist of: December 31, 2020 2019 (Amounts in thousands) Unrecognized net loss $ (93,417) $ (85,891) Unrecognized prior service cost (3,829) (3,446) Accumulated other comprehensive loss, net of tax $ (97,246) $ (89,337) The following table shows the change in accumulated other comprehensive loss attributable to the components of the net cost and the change in Benefit Obligations for postretirement benefits, net of tax: 2020 2019 (Amounts in thousands) Balance — January 1 $ 656 $ 2,425 Amortization of net gain (101) (164) Amortization of prior service cost 94 94 Net losses arising during the year (1,862) (1,699) Balance — December 31 $ (1,213) $ 656 Amounts recorded in accumulated other comprehensive loss consist of: December 31, 2020 2019 (Amounts in thousands) Unrecognized net gain (loss) $ (470) $ 1,512 Unrecognized prior service cost (743) (856) Accumulated other comprehensive income, net of tax $ (1,213) $ 656 |
Reconciliation of Plan Assets | The following is a reconciliation of the U.S. defined benefit pension plans’ assets: December 31, 2020 2019 (Amounts in thousands) Balance — January 1 $ 482,553 $ 425,792 Return on plan assets 47,992 69,663 Company contributions 1,412 20,552 Benefits paid (53,250) (33,454) Settlements (1,027) — Balance — December 31 $ 477,680 $ 482,553 The following is a reconciliation of the non-U.S. plans’ defined benefit pension assets: December 31, 2020 2019 (Amounts in thousands) Balance — January 1 $ 262,559 $ 232,175 Return on plan assets 21,897 23,793 Employee contributions 80 78 Company contributions 11,279 16,782 Settlements (2,939) (3,688) Currency translation impact and other 10,132 7,945 Net benefits and expenses paid (15,700) (14,526) Balance — December 31 $ 287,308 $ 262,559 |
Allocation of Plan Assets | The asset allocations for the qualified plan at the end of 2020 and 2019 by asset category, are as follows: Target Allocation Percentage of Actual Plan Assets at December 31, Asset category 2020 2019 2020 2019 Cash and cash equivalents — % — % 1 % 1 % Cash and cash equivalents — % — % 1 % 1 % Global Equity 31 % 31 % 30 % 28 % Global Real Assets 12 % 12 % 13 % 12 % Equity securities 43 % 43 % 43 % 40 % Diversified Credit 12 % 12 % 14 % 12 % Liability-Driven Investment 45 % 45 % 42 % 47 % Fixed income 57 % 57 % 56 % 59 % The plan’s financial instruments, shown below, are presented at fair value. See Note 1 for further discussion on how the hierarchical levels of the fair values of the Plan’s investments are determined. The fair values of our U.S. defined benefit plan assets were: At December 31, 2020 At December 31, 2019 Hierarchical Levels Hierarchical Levels Total I II III Total I II III (Amounts in thousands) (Amounts in thousands) Cash and cash equivalents $ 5,986 $ 5,986 $ — $ — $ 4,994 $ 4,994 $ — $ — Commingled Funds: Equity securities Global Equity(a) 142,401 — 142,401 — 135,350 — 135,350 — Global Real Assets(b) 61,604 — 61,604 — 60,523 — 60,523 — Fixed income securities Diversified Credit(c) 66,995 — 66,995 — 56,375 — 56,375 — Liability-Driven Investment(d) 200,694 — 200,694 — 225,311 — 225,311 — $ 477,680 $ 5,986 $ 471,694 $ — $ 482,553 $ 4,994 $ 477,559 $ — _______________________________________ (a) Global Equity fund seeks to closely track the performance of the MSCI All Country World Index. (b) Global Real Asset funds seek to provide exposure to the listed global real estate investment trusts (REITs) and infrastructure markets. (c) Diversified Credit funds seek to provide exposure to the high yield, emerging markets, bank loans and securitized credit markets. (d) Liability-Driven Investment ("LDI") funds seek to invest in high quality fixed income securities that collectively closely match those found in discount curves used to value the plan's liabilities. The asset allocations for the non-U.S. defined benefit pension plans at the end of 2020 and 2019 are as follows: Target Allocation at Percentage of Actual Plan Asset category 2020 2019 2020 2019 Cash and cash equivalents 1 % 2 % 1 % 2 % Cash and cash equivalents 1 % 2 % 1 % 2 % North American Companies 1 % 1 % 1 % 1 % Global Equity 1 % 1 % 1 % 1 % Equity securities 2 % 2 % 2 % 2 % U.K. Government Gilt Index 39 % 43 % 39 % 43 % Liability-Driven Investment 12 % 7 % 12 % 7 % Fixed income 51 % 50 % 51 % 50 % Multi-asset 20 % 19 % 20 % 19 % Buy-in Contracts 20 % 21 % 20 % 21 % Other 6 % 6 % 6 % 6 % Other types 46 % 46 % 46 % 46 % The fair values of the non-U.S. assets were: At December 31, 2020 At December 31, 2019 Hierarchical Levels Hierarchical Levels Total I II III Total I II III (Amounts in thousands) (Amounts in thousands) Cash $ 2,304 $ 2,304 $ — — $ 5,026 $ 5,026 $ — $ — Commingled Funds: Equity securities North American Companies(a) 2,555 — 2,555 — 2,501 — 2,501 — Global Equity(b) 2,451 — 2,451 — 2,411 — 2,411 — Fixed income securities U.K. Government Gilt Index(c) 112,298 — 112,298 — 113,855 — 113,855 — Liability-Driven Investment(d) 34,543 — 34,543 — 20,011 — 20,011 — Other Types of Investments: Multi-asset(e) 57,205 — 57,205 — 48,964 — 48,964 — Buy-in Contracts(f) 59,249 — — 59,249 54,544 — — 54,544 Other(g) 16,703 — — 16,703 15,247 — — 15,247 $ 287,308 $ 2,304 $ 209,052 $ 75,952 $ 262,559 $ 5,026 $ 187,742 $ 69,791 _______________________________________ (a) North American Companies represents U.S. and Canadian large cap equity funds, which are managed to track their respective benchmarks (FTSE All-World USA Index and FTSE All-World Canada Index). (b) Global Equity represents actively managed global equity funds, taking a top-down strategic view on the different regions by analyzing companies based on fundamentals, market-driven, thematic and quantitative factors to generate alpha. (c) U.K. Government Gilt Index represents U.K. government issued fixed income investments which are passively managed to track their respective benchmarks. (d) LDI seeks to invest in fixed income securities that collectively closely match those found in discount curves used to value the plan's liabilities. (e) Multi-asset seeks an attractive risk-adjusted return by investing in a diversified portfolio of strategies, including equities and fixed income. (f) The Buy-in Contracts ("Contract" or "Contracts") represent assets held by plans, whereby the cost of providing benefits to plan participants is funded by the Contract. The Contracts are held by the plans for the benefit of plan participants in the Netherlands and U.K. The fair value of these assets are based on the current present value of accrued benefits and will fluctuate based on changes in the obligations associated with covered plan members as well as the assumptions used in the present value calculation. The fair value of asset held in the Netherlands Contract as of January 1, 2020 wa s $25.9 million, with contributions and currency adjustments resulting in a fair value of $27.4 million at December 31, 2020. Similarly, The fair value of asset held in the U.K. plan Contract as of January 1, 2020 was $28.6 million , with contributions and currency adjustments resulting in a fair value of $31.8 million at December 31, 2020. |
Schedule of Benefit Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets | The following summarizes key pension plan information regarding U.S. and non-U.S. plans whose accumulated benefit obligations exceed the fair value of their respective plan assets. December 31, 2020 2019 (Amounts in thousands) Benefit Obligation $ 735,912 $ 229,793 Accumulated benefit obligation 716,534 212,906 Fair value of plan assets 526,502 46,718 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Calculation of Net Earnings Per Common Share and Weighted Average Common Share Outstanding | The following is a reconciliation of net earnings of Flowserve Corporation and weighted average shares for calculating net earnings per common share. Earnings per weighted average common share outstanding was calculated as follows: Year Ended December 31, 2020 2019 2018 (Amounts in thousands, except per share data) Net earnings of Flowserve Corporation $ 116,326 $ 238,828 $ 104,508 Dividends on restricted shares not expected to vest — — — Earnings attributable to common and participating shareholders $ 116,326 $ 238,828 $ 104,508 Weighted average shares: Common stock 130,373 131,012 130,794 Participating securities 22 22 29 Denominator for basic earnings per common share 130,395 131,034 130,823 Effect of potentially dilutive securities 655 685 448 Denominator for diluted earnings per common share 131,050 131,719 131,271 Net earnings per share attributable to Flowserve Corporation common shareholders: Basic $ 0.89 $ 1.82 $ 0.80 Diluted 0.89 1.81 0.80 |
Legal Matters and Contingenci_2
Legal Matters and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Loss Contingencies by Contingency | Activity related to asbestos claims during the periods indicated was as follow s : December 31, 2020 2019 2018 Beginning claims(1) 8,345 8,666 12,447 New claims 2,140 2,314 2,766 Resolved claims (2,203) (2,601) (5,980) Other(2) 84 (34) (567) Ending claims(1) 8,366 8,345 8,666 ____________________ (1) Beginning and ending claims data in each period excludes inactive claims, as the Company considers it unlikely that inactive cases will be pursued further by the respective plaintiffs. A claim is classified as inactive either due to inactivity over a period of time or if designated as inactive by the applicable court. (2) Represents the net change in claims as a result of the reclassification of active cases as inactive and inactive cases as active during the period indicated. Cases moved from active to inactive status are removed from the claims count without being accounted for as a "Resolved claim", and cases moved from inactive status to active status are added back to the claims count without being accounted for as a “New claim”. |
Warranty Reserve (Tables)
Warranty Reserve (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Activity in the Warranty Reserve | The following is a summary of the activity in the warranty reserve: Year Ended December 31, 2020 2019 2018 (Amounts in thousands) Balance — January 1 $ 30,854 $ 32,033 $ 33,601 Accruals for warranty expense, net of adjustments 21,701 26,215 28,454 Settlements made (24,611) (27,394) (30,022) Balance — December 31 $ 27,944 $ 30,854 $ 32,033 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Dividends Declared | Dividends declared per share were as follows: Year Ended December 31, 2020 2019 2018 Dividends declared per share $ 0.80 $ 0.76 $ 0.76 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes consists of the following: Year Ended December 31, 2020 2019 2018 (Amounts in thousands) Current: U.S. federal $ 40,234 $ 22,001 $ 12,079 Foreign 42,487 61,976 29,968 State and local 5,894 4,506 2,647 Total current 88,615 88,483 44,694 Deferred: U.S. federal (50,038) (1,644) 6,567 Foreign 25,356 (12,243) (4,585) State and local (3,902) 897 (126) Total deferred (28,584) (12,990) 1,856 Total provision $ 60,031 $ 75,493 $ 46,550 |
Schedule of Reconciliation Statutory Corporate Rate to Provision for Income Taxes | The provision for income taxes differs from the statutory corporate rate due to the following: Year Ended December 31, 2020 2019 2018 (Amounts in millions) Statutory federal income tax at 21% $ 39.2 $ 67.7 $ 32.9 Foreign impact, net (1.3) 4.5 (5.9) Impact of U.S. Tax Reform Act — — (5.7) Change in valuation allowances 26.9 0.3 15.7 State and local income taxes, net 2.0 5.4 3.7 Research and development credit (5.2) (5.4) — Other, net (1.6) 3.0 5.9 Total $ 60.0 $ 75.5 $ 46.6 Effective tax rate 32.1 % 23.4 % 29.8 % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the consolidated deferred tax assets and liabilities were: December 31, 2020 2019 (Amounts in thousands) Deferred tax assets related to: Retirement benefits $ 29,754 $ 25,214 Net operating loss carryforwards 109,020 101,193 Compensation accruals 20,290 24,685 Inventories 36,402 34,846 Credit and capital loss carryforwards 136,956 131,744 Warranty and accrued liabilities 27,483 18,741 Bad debt reserve 17,455 30,884 Operating lease liability 25,446 27,799 Other 38,457 25,339 Total deferred tax assets 441,263 420,445 Valuation allowances (287,787) (266,414) Net deferred tax assets 153,476 154,031 Deferred tax liabilities related to: Property, plant and equipment (11,714) (26,311) Goodwill and intangibles (101,818) (114,122) Foreign undistributed earnings (50,332) (67,930) Operating lease right-of-use-assets (25,799) (27,799) Other (17,621) (12,623) Total deferred tax liabilities (207,284) (248,785) Deferred tax liabilities, net $ (53,808) $ (94,754) |
Schedule of Earnings Before Income Tax | Earnings before income taxes comprised: Year Ended December 31, 2020 2019 2018 (Amounts in thousands) U.S. $ 73,109 $ 110,500 $ 68,838 Foreign 113,703 211,933 87,600 Total $ 186,812 $ 322,433 $ 156,438 |
Reconciliation of Unrecognized Tax Benefits | A tabular reconciliation of the total gross amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in millions): 2020 2019 2018 Balance — January 1 $ 40.6 $ 41.2 $ 51.5 Gross amount of increase (decrease) in unrecognized tax benefits resulting from tax positions taken: During a prior year 3.8 8.8 (6.6) During the current period 11.1 6.3 4.0 Decreases in unrecognized tax benefits relating to: Settlements with taxing authorities (0.2) (11.4) (2.7) Lapse of the applicable statute of limitations (2.5) (3.2) (3.7) Increase (decrease) in unrecognized tax benefits relating to foreign currency translation adjustments 2.0 (1.1) (1.3) Balance — December 31 $ 54.8 $ 40.6 $ 41.2 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Summarized Financial Information of Reportable Segments | The following is a summary of the financial information of our reportable segments as of and for the years ended December 31, 2020, 2019 and 2018 reconciled to the amounts reported in the consolidated financial statements. Subtotal—Reportable Segments Eliminations and All Other Consolidated Total FPD FCD (Amounts in thousands) Year Ended December 31, 2020: Sales to external customers $2,673,705 $ 1,054,429 $ 3,728,134 $ — $ 3,728,134 Intersegment sales 1,965 3,120 5,085 (5,085) — Segment operating income (loss) 270,960 125,573 396,533 (146,256) 250,277 Depreciation and amortization 52,390 21,949 74,339 26,414 100,753 Identifiable assets 3,039,069 1,308,136 4,347,205 967,472 5,314,677 Capital expenditures 21,714 14,043 35,757 21,648 57,405 Subtotal—Reportable Segments Eliminations and All Other Consolidated Total FPD FCD (Amounts in thousands) Year Ended December 31, 2019: Sales to external customers $2,704,445 $ 1,235,252 $ 3,939,697 $ — $ 3,939,697 Intersegment sales 1,833 3,631 5,464 (5,464) — Segment operating income (loss) 343,514 191,945 535,459 (148,836) 386,623 Depreciation and amortization 50,845 23,577 74,422 31,482 105,904 Identifiable assets 2,974,161 1,333,926 4,308,087 630,190 4,938,277 Capital expenditures 26,450 14,449 40,899 34,817 75,716 Subtotal—Reportable Segments Eliminations and All Other Consolidated Total FPD FCD (Amounts in thousands) Year Ended December 31, 2018: Sales to external customers $ 2,620,488 $ 1,215,211 $ 3,835,699 $ — $ 3,835,699 Intersegment sales 2,816 3,637 6,453 (6,453) — Segment operating income (loss) 200,981 204,250 405,231 (177,530) 227,701 Depreciation and amortization 68,148 26,585 94,733 17,740 112,473 Identifiable assets 2,768,879 1,269,435 4,038,314 611,055 4,649,369 Capital expenditures 40,648 14,458 55,106 28,887 83,993 |
Schedule of Sales and Long-lived Assets by Geographic Area | Sales and long-lived assets by geographic area are as follows: Year Ended December 31, 2020 Sales Percentage Long-Lived Percentage (Amounts in thousands, except percentages) United States $ 1,463,680 39.3 % $ 455,622 46.2 % EMA(1) 1,385,245 37.2 % 336,577 34.1 % Asia(2) 535,440 14.4 % 138,947 14.1 % Other(3) 343,769 9.1 % 55,278 5.6 % Consolidated total $ 3,728,134 100.0 % $ 986,424 100.0 % Year Ended December 31, 2019 Sales Percentage Long-Lived Percentage (Amounts in thousands, except percentages) United States $ 1,632,582 41.4 % $ 481,474 48.0 % EMA(1) 1,397,308 35.5 % 312,668 31.2 % Asia(2) 551,759 14.0 % 143,848 14.3 % Other(3) 358,048 9.1 % 64,846 6.5 % Consolidated total $ 3,939,697 100.0 % $ 1,002,836 100.0 % Year Ended December 31, 2018 Sales Percentage Long-Lived Percentage (Amounts in thousands, except percentages) United States $ 1,528,963 39.9 % $ 353,767 42.6 % EMA(1) 1,424,498 37.1 % 280,549 33.8 % Asia(2) 539,898 14.1 % 132,667 16.0 % Other(3) 342,340 8.9 % 63,161 7.6 % Consolidated total $ 3,835,699 100.0 % $ 830,144 100.0 % ___________________________________ (1) "EMA" includes Europe, the Middle East and Africa. Germany accounted for approximately 7% for 2020, 6% for 2019 and 7% in 2018, of consolidated long-lived assets. No other individual country within this group represents 10% or more of consolidated totals for any period presented. (2) "Asia" includes Asia and Australia. No individual country within this group represents 10% or more of consolidated totals for any period presented. (3) "Other" includes Canada and Latin America. No individual country within this group represents 10% or more of consolidated totals for any period presented. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following presents the components of accumulated other comprehensive loss (AOCL), net of related tax effects: 2020 2019 (Amounts in thousands) Foreign currency translation items(1) Pension and other post-retirement effects Cash flow hedging activity Total(1) Foreign currency translation items(1) Pension and other post-retirement effects Cash flow hedging activity Total(1) Balance - January 1 $ (441,364) $ (137,161) $ (671) $ (579,196) $ (447,925) $ (120,647) $ (858) $ (569,430) Other comprehensive income (loss) before reclassifications 388 (18,979) 183 (18,408) 6,561 (22,523) 187 (15,775) Amounts — 9,417 — 9,417 — 6,009 — 6,009 Net current-period other comprehensive income (loss) 388 (9,562) 183 (8,991) 6,561 (16,514) 187 (9,766) Balance - December 31 $ (440,976) $ (146,723) $ (488) $ (588,187) $ (441,364) $ (137,161) $ (671) $ (579,196) _______________________________________ (1) Includes foreign currency translation adjustments attributable to noncontrolling interests of $5.9 million , $5.1 million and $4.5 million for December 31, 2020, 2019 and 2018, respectively. For the year ended December 31, 2020, foreign currency translation impacts primarily represented the strengthening of the Euro, Chinese yuan, British pound and Canadian dollar |
Reclassifications from Accumulated Other Comprehensive Loss | The following table presents the reclassifications out of AOCL: (Amounts in thousands) Affected line item in the statement of income 2020(1) 2019(1) Pension and other postretirement effects Amortization of actuarial losses(2) Other income (expense), net $ (11,161) $ (6,608) Prior service costs(2) Other income (expense), net (568) (429) Settlements and other(2) Other income (expense), net (836) (859) Tax benefit 3,148 1,887 Net of tax $ (9,417) $ (6,009) ______________________________________ (1) Amounts in parentheses indicate decreases to income. None of the reclassification amounts have a noncontrolling interest component. (2) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 14 for additional details. |
Realignment and Transformatio_2
Realignment and Transformation Programs (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | : December 31, 2020 (Amounts in thousands) FPD FCD Subtotal–Reportable Segments All Other Consolidated Total Restructuring Charges COS $ 19,510 $ 1,122 $ 20,632 $ — $ 20,632 SG&A(1) 156 335 491 (16) 475 $ 19,666 $ 1,457 $ 21,123 $ (16) $ 21,107 Non-Restructuring Charges COS $ 19,328 $ 7,285 $ 26,613 $ 52 $ 26,665 SG&A 11,166 4,605 15,771 18,527 34,298 $ 30,494 $ 11,890 $ 42,384 $ 18,579 $ 60,963 Transformation Charges SG&A $ — $ — $ — $ 22,719 $ 22,719 $ — $ — $ — $ 22,719 $ 22,719 Total Realignment and Transformation Charges COS $ 38,838 $ 8,407 $ 47,245 $ 52 $ 47,297 SG&A 11,322 4,940 16,262 41,230 57,492 Total $ 50,160 $ 13,347 $ 63,507 $ 41,282 $ 104,789 December 31, 2019 (Amounts in thousands) FPD FCD Subtotal–Reportable Segments All Other Consolidated Total Restructuring Charges COS $ 1,149 $ 2,653 $ 3,802 $ — $ 3,802 SG&A(1) (16,610) 556 (16,054) — (16,054) Income tax expense(2) (4,000) — (4,000) — (4,000) $ (19,461) $ 3,209 $ (16,252) $ — $ (16,252) Non-Restructuring Charges COS 11,438 $ 1,742 $ 13,180 $ 255 $ 13,435 SG&A 2,104 218 2,322 4,428 6,750 $ 13,542 $ 1,960 $ 15,502 $ 4,683 $ 20,185 Transformation Charges SG&A $ — $ — $ — 28,039 $ 28,039 $ — $ — $ — $ 28,039 $ 28,039 Total Realignment and Transformation Charges COS $ 12,587 $ 4,395 $ 16,982 $ 255 $ 17,237 SG&A (14,506) 774 (13,732) 32,467 18,735 Income tax expense(2) (4,000) — (4,000) — (4,000) Total $ (5,919) $ 5,169 $ (750) $ 32,722 $ 31,972 ____________________________________ (1) Includes gains from the sales of non-strategic manufacturing facilities that are included in our Realignment Programs. (2) Income tax expense (benefit) includes exit taxes. The following is a summary of total inception to date charges, net of adjustments, related to the 2020 Realignment Program initiated in 2020: 2020 Realignment Program Inception to Date (Amounts in thousands) FPD FCD Subtotal–Reportable Segments All Other Consolidated Total Restructuring Charges COS $ 17,829 $ 1,227 $ 19,056 $ — $ 19,056 SG&A 51 325 376 — 376 $ 17,880 $ 1,552 $ 19,432 $ — $ 19,432 Non-Restructuring Charges COS $ 19,203 $ (473) $ 18,730 $ 52 $ 18,782 SG&A 10,681 4,554 15,235 17,882 33,117 $ 29,884 $ 4,081 $ 33,965 $ 17,934 $ 51,899 Total Realignment Charges COS $ 37,032 $ 754 $ 37,786 $ 52 $ 37,838 SG&A 10,732 4,879 15,611 17,882 33,493 Total $ 47,764 $ 5,633 $ 53,397 $ 17,934 $ 71,331 Restructuring charges represent costs associated with the relocation or reorganization of certain business activities and facility closures and include costs related to employee severance at closed facilities, contract termination costs, asset write-downs and other costs. Severance costs primarily include costs associated with involuntary termination benefits. Contract termination costs include costs related to the termination of operating leases or other contract termination costs. Asset write-downs include accelerated depreciation of fixed assets, accelerated amortization of intangible assets, divestiture of certain non-strategic assets and inventory write-downs. Other costs generally include costs related to employee relocation, asset relocation, vacant facility costs (i.e., taxes and insurance) and other charges. The following is a summary of restructuring charges, net of adjustments, for our restructuring activities. Restructuring charges incurred in 2020 related to our 2020 Realignment Program and restructuring charges incurred in 2019 related to our 2015 Realignment Programs: December 31, 2020 (Amounts in thousands) Severance Contract Termination Asset Write-Downs Other Total COS $ 16,927 $ 52 $ 1,409 $ 2,244 $ 20,632 SG&A 223 — 11 241 475 Total $ 17,150 $ 52 $ 1,420 $ 2,485 $ 21,107 December 31, 2019 (Amounts in thousands) Severance Contract Termination Asset Write-Downs/(Gains) Other Total COS $ 2,183 $ 58 $ (1,782) $ 3,343 $ 3,802 SG&A(1) 2,211 — (18,429) 164 (16,054) Income tax expense(2) — — — (4,000) (4,000) Total $ 4,394 $ 58 $ (20,211) $ (493) $ (16,252) _____________________________________ (1) Primarily consists of gains from the sales of non-strategic manufacturing facilities that are included in our Realignment Programs. (2) Income tax expense (benefit) includes exit taxes as well as non-deductible costs. The following is a summary of total inception to date charges, net of adjustments, related to the 2020 Realignment Program initiated in 2020: 2020 Realignment Program Inception to Date (Amounts in thousands) Severance Contract Termination Asset Write-Downs Other Total COS $ 15,244 $ 52 $ 1,412 $ 2,348 $ 19,056 SG&A 84 — 14 278 376 Total $ 15,328 $ 52 $ 1,426 $ 2,626 $ 19,432 |
Schedule of Restructuring Reserve by Type of Cost | The following represents the activity, primarily severance, related to the restructuring reserve for the Realignment Programs for the years ended December 31, 2020 and 2019: (Amounts in thousands) 2020 2019 Balance at January 1, $ 6,703 $ 11,927 Charges 19,686 7,958 Cash expenditures (9,146) (12,865) Other non-cash adjustments, including currency 1,012 (317) Balance at December 31, $ 18,255 $ 6,703 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Data [Abstract] | |
Summary of the Unaudited Quarterly Data | The following presents a summary of the unaudited quarterly data for 2020 and 2019 (amounts in millions, except per share data): 2020 Quarter 4th 3rd 2nd 1st Sales $ 985.3 $ 924.3 $ 925.0 $ 893.5 Gross profit 295.4 285.2 269.7 266.5 Earnings before income taxes 61.3 72.3 16.7 36.5 Net earnings (loss) attributable to Flowserve Corporation 56.9 51.0 9.7 (1.3) Earnings (loss) per share(1): Basic $ 0.44 $ 0.39 $ 0.07 $ (0.01) Diluted 0.43 0.39 0.07 (0.01) 2019 Quarter 4th 3rd 2nd 1st Sales $ 1,068.2 $ 995.7 $ 990.0 $ 885.8 Gross profit 349.5 332.9 317.9 289.0 Earnings before income taxes 90.9 84.4 77.4 69.7 Net earnings attributable to Flowserve Corporation 72.6 59.8 54.0 52.4 Earnings per share(1): Basic $ 0.55 $ 0.46 $ 0.41 $ 0.40 Diluted 0.55 0.45 0.41 0.40 _______________________________________ (1) Earnings per share is computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in weighted average quarterly shares outstanding. |
Significant Accounting Polici_4
Significant Accounting Policies and Accounting Developments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Interest ownership for cost method accounting (percentage) | 20.00% | |||
Subsidiary sales as a percentage of consolidated sales | 1.00% | |||
Subsidiary sales as a percentage of consolidated assets | 1.00% | |||
Loss accrual | $ 99,500 | |||
Insurance receivables | $ 69,500 | |||
Warranty obligations sales trend period (in months) | 24 months | |||
Research and Development [Abstract] | ||||
Research and development costs | $ 36,100 | $ 42,000 | $ 39,600 | |
Goodwill | 1,224,886 | 1,193,010 | $ 1,197,640 | |
Retained Earnings (Accumulated Deficit) | 3,656,449 | 3,652,244 | ||
Accounts And Other Receivable, Allowance for Credit Loss, Current | 75,200 | 53,400 | ||
Accounts Receivable, Allowance for Credit Loss, Current | 59,280 | 47,269 | ||
Accounts Receivable, Allowance for Credit Loss, Period Increase (Decrease) | 14,900 | |||
Accounts Receivable, after Allowance for Credit Loss, Noncurrent | 105,300 | 140,000 | ||
Accounts Receivable, Allowance for Credit Loss, Noncurrent | 96,100 | 101,400 | ||
FPD | ||||
Research and Development [Abstract] | ||||
Goodwill | $ 482,700 | $ 468,800 | ||
Percentage of fair value in excess of carrying value | 46.00% | 131.00% | ||
Cumulative Effect, Period of Adoption, Adjustment | ||||
Research and Development [Abstract] | ||||
Retained Earnings (Accumulated Deficit) | $ 7,300 | |||
Accounts Receivable, Allowance for Credit Loss, Current | $ 6,900 | |||
Minimum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Estimate of possible loss | $ 80,100 | |||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Intangible asset, useful life (in years) | 4 years | |||
Minimum | Internally developed software | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property, plant and equipment, useful life (in years) | 3 years | |||
Minimum | Cloud Computing Arrangements | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property, plant and equipment, useful life (in years) | 3 years | |||
Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Estimate of possible loss | $ 131,700 | |||
Remaining lease term | 33 years | |||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Intangible asset, useful life (in years) | 40 years | |||
Maximum | Internally developed software | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property, plant and equipment, useful life (in years) | 5 years | |||
Maximum | Cloud Computing Arrangements | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Property, plant and equipment, useful life (in years) | 7 years |
Significant Accounting Polici_5
Significant Accounting Policies and Accounting Developments (Estimated Useful Lives of Assets) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 10 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 40 years |
Machinery, equipment and tooling | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 3 years |
Machinery, equipment and tooling | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 14 years |
Software, furniture and fixtures and other | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 3 years |
Software, furniture and fixtures and other | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 7 years |
Revision to Previously Report_3
Revision to Previously Reported Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Prepaid expenses and other | $ 110,635 | $ 106,478 | ||
Assets, Current | 2,904,333 | 2,506,747 | ||
Property, plant and equipment, net | 556,873 | 563,564 | ||
Other Assets, Noncurrent | 221,426 | 253,054 | ||
Identifiable assets | 5,314,677 | 4,938,277 | $ 4,649,369 | |
Contract liabilities | 194,227 | 221,095 | ||
Liabilities, Current | 1,141,633 | 1,117,442 | ||
Retirement obligations and other liabilities | 516,087 | 530,994 | ||
Retained Earnings (Accumulated Deficit) | 3,656,449 | 3,652,244 | ||
Stockholders' Equity Attributable to Parent | 1,732,470 | 1,746,739 | ||
Stockholders' equity | 1,762,800 | 1,772,341 | 1,632,003 | $ 1,658,531 |
Liabilities and Equity | 5,314,677 | 4,938,277 | ||
Net Cash Provided by (Used in) Operating Activities | 310,537 | 324,097 | 190,831 | |
Net Cash Provided by (Used in) Investing Activities | (41,700) | (33,383) | (81,466) | |
Net Cash Provided by (Used in) Financing Activities | 147,587 | (231,464) | (173,284) | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 1,095,274 | 670,980 | $ 619,683 | 703,445 |
As Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Prepaid expenses and other | 105,101 | |||
Assets, Current | 2,505,370 | |||
Property, plant and equipment, net | 572,175 | |||
Other Assets, Noncurrent | 227,185 | |||
Identifiable assets | 4,919,642 | |||
Contract liabilities | 216,541 | |||
Liabilities, Current | 1,112,888 | |||
Retirement obligations and other liabilities | 473,295 | |||
Retained Earnings (Accumulated Deficit) | 3,695,862 | |||
Stockholders' Equity Attributable to Parent | 1,790,357 | |||
Stockholders' equity | 1,815,959 | |||
Liabilities and Equity | 4,919,642 | |||
Net Cash Provided by (Used in) Operating Activities | 312,741 | |||
Net Cash Provided by (Used in) Investing Activities | (23,837) | |||
Net Cash Provided by (Used in) Financing Activities | (229,654) | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 670,980 | |||
Adjustments | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Prepaid expenses and other | 1,377 | |||
Assets, Current | 1,377 | |||
Property, plant and equipment, net | (8,611) | |||
Other Assets, Noncurrent | 25,869 | |||
Identifiable assets | 18,635 | |||
Contract liabilities | 4,554 | |||
Liabilities, Current | 4,554 | |||
Retirement obligations and other liabilities | 57,699 | |||
Retained Earnings (Accumulated Deficit) | (43,618) | $ 28,800 | ||
Stockholders' Equity Attributable to Parent | (43,618) | |||
Stockholders' equity | (43,618) | |||
Liabilities and Equity | 18,635 | |||
Net Cash Provided by (Used in) Operating Activities | 11,356 | |||
Net Cash Provided by (Used in) Investing Activities | (9,546) | |||
Net Cash Provided by (Used in) Financing Activities | (1,810) | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 0 |
Revision to Previously Report_4
Revision to Previously Reported Financial Information - Income Statement (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||
Sales | $ 985,300 | $ 924,300 | $ 925,000 | $ 893,500 | $ 1,068,200 | $ 995,700 | $ 990,000 | $ 885,800 | $ 3,728,134 | $ 3,939,697 | $ 3,835,699 | ||||||||
Cost of Goods and Services Sold | (2,611,365) | (2,650,354) | (2,644,830) | ||||||||||||||||
Gross profit | 295,400 | 285,200 | 269,700 | 266,500 | 349,500 | 332,900 | 317,900 | 289,000 | 1,116,769 | 1,289,343 | 1,190,869 | ||||||||
Selling, General and Administrative Expense | (878,245) | (913,203) | (966,584) | ||||||||||||||||
Segment operating income (loss) | 250,277 | 386,623 | 227,701 | ||||||||||||||||
Earnings before income taxes | 61,300 | 72,300 | 16,700 | 36,500 | 90,900 | 84,400 | 77,400 | 69,700 | 186,812 | 322,433 | 156,437 | ||||||||
Income Tax Expense (Benefit) | (60,031) | (75,493) | (46,550) | ||||||||||||||||
Net earnings | 126,781 | 246,940 | 109,887 | ||||||||||||||||
Net Income (Loss) Attributable to Parent | $ 56,900 | $ 51,000 | $ 9,700 | $ (1,300) | $ 72,600 | $ 59,800 | $ 54,000 | $ 52,400 | $ 116,326 | $ 238,828 | $ 104,508 | ||||||||
Basic (in dollars per share) | $ 0.44 | [1] | $ 0.39 | [1] | $ 0.07 | [1] | $ (0.01) | [1] | $ 0.55 | [1] | $ 0.46 | [1] | $ 0.41 | [1] | $ 0.40 | [1] | $ 0.89 | $ 1.82 | $ 0.80 |
Diluted (in dollars per share) | $ 0.43 | [1] | $ 0.39 | [1] | $ 0.07 | [1] | $ (0.01) | [1] | $ 0.55 | [1] | $ 0.45 | [1] | $ 0.41 | [1] | $ 0.40 | [1] | $ 0.89 | $ 1.81 | $ 0.80 |
As Reported | |||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||
Sales | $ 3,944,850 | $ 3,832,666 | |||||||||||||||||
Cost of Goods and Services Sold | (2,649,480) | ||||||||||||||||||
Gross profit | 1,295,370 | 1,187,836 | |||||||||||||||||
Selling, General and Administrative Expense | (899,813) | (943,714) | |||||||||||||||||
Segment operating income (loss) | 406,040 | 247,538 | |||||||||||||||||
Earnings before income taxes | 341,850 | 176,274 | |||||||||||||||||
Income Tax Expense (Benefit) | (80,070) | (51,224) | |||||||||||||||||
Net earnings | 261,780 | 125,050 | |||||||||||||||||
Net Income (Loss) Attributable to Parent | $ 253,668 | $ 119,671 | |||||||||||||||||
Basic (in dollars per share) | $ 1.94 | $ 0.91 | |||||||||||||||||
Diluted (in dollars per share) | $ 1.93 | $ 0.91 | |||||||||||||||||
Adjustments | |||||||||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||||||||
Sales | $ (5,153) | $ 3,033 | |||||||||||||||||
Cost of Goods and Services Sold | (874) | ||||||||||||||||||
Gross profit | (6,027) | 3,033 | |||||||||||||||||
Selling, General and Administrative Expense | (13,390) | (22,870) | |||||||||||||||||
Segment operating income (loss) | (19,417) | (19,837) | |||||||||||||||||
Earnings before income taxes | (19,417) | (19,837) | |||||||||||||||||
Income Tax Expense (Benefit) | 4,577 | 4,674 | |||||||||||||||||
Net earnings | (14,840) | (15,163) | |||||||||||||||||
Net Income (Loss) Attributable to Parent | $ (14,840) | $ (15,163) | |||||||||||||||||
Basic (in dollars per share) | $ (0.12) | $ (0.11) | |||||||||||||||||
Diluted (in dollars per share) | $ (0.12) | $ (0.11) | |||||||||||||||||
[1] | Earnings per share is computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in weighted average quarterly shares outstanding. |
Revenue Recognition (Details)
Revenue Recognition (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020USD ($)segments | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Remaining performance obligation, amount | $ | $ 541 | ||
Number of operating segments (in segments) | segments | 2 | ||
Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from products and services percentage | 22.00% | 19.00% | 22.00% |
Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from products and services percentage | 78.00% | 81.00% | 78.00% |
Revenue Recognition (Performanc
Revenue Recognition (Performance Obligations) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 541 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 412 |
Remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 129 |
Remaining performance obligation, period | 1 year |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | $ 985,300 | $ 924,300 | $ 925,000 | $ 893,500 | $ 1,068,200 | $ 995,700 | $ 990,000 | $ 885,800 | $ 3,728,134 | $ 3,939,697 | $ 3,835,699 |
FPD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 2,673,705 | 2,704,445 | 2,620,488 | ||||||||
FCD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,054,429 | 1,235,252 | 1,215,211 | ||||||||
Original Equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,900,491 | 1,961,990 | 1,939,088 | ||||||||
Original Equipment | FPD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,091,906 | 994,719 | 992,162 | ||||||||
Original Equipment | FCD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 808,585 | 967,271 | 946,926 | ||||||||
Aftermarket | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,827,643 | 1,977,707 | 1,896,611 | ||||||||
Aftermarket | FPD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,581,799 | 1,709,726 | 1,628,326 | ||||||||
Aftermarket | FCD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 245,844 | 267,981 | 268,285 | ||||||||
North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,468,857 | 1,627,809 | 1,579,015 | ||||||||
North America | FPD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,039,285 | 1,085,627 | 1,037,637 | ||||||||
North America | FCD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 429,572 | 542,182 | 541,378 | ||||||||
Latin America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 217,910 | 231,146 | 241,781 | ||||||||
Latin America | FPD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 191,517 | 202,247 | 219,376 | ||||||||
Latin America | FCD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 26,393 | 28,899 | 22,405 | ||||||||
Middle East and Africa | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 469,942 | 454,896 | 467,724 | ||||||||
Middle East and Africa | FPD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 359,403 | 355,937 | 329,484 | ||||||||
Middle East and Africa | FCD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 110,539 | 98,959 | 138,240 | ||||||||
Asia Pacific | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 808,030 | 815,818 | 783,639 | ||||||||
Asia Pacific | FPD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 537,792 | 499,932 | 502,559 | ||||||||
Asia Pacific | FCD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 270,238 | 315,886 | 281,080 | ||||||||
Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 763,395 | 810,028 | 763,540 | ||||||||
Europe | FPD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 545,708 | 560,702 | 531,432 | ||||||||
Europe | FCD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | $ 217,687 | $ 249,326 | $ 232,108 |
Revenue Recognition (Contract A
Revenue Recognition (Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change In Contract With Customer, Asset And Liability [Roll Forward] | |||
Contract assets, net | $ 272,914 | ||
Contract liabilities | 221,095 | ||
Amounts transferred from contract assets to receivables | 4,258 | $ (45,220) | $ (24,411) |
Contract assets, net | 277,734 | 272,914 | |
Contract liabilities | 194,227 | 221,095 | |
Contract Assets, net (Current) | |||
Change In Contract With Customer, Asset And Liability [Roll Forward] | |||
Contract Assets, net (Current) | 272,914 | 229,297 | |
Revenue recognized that was included in contract liabilities at the beginning of the period | 0 | 0 | |
Increase due to revenue recognized in the period in excess of billings | 925,244 | 835,147 | |
Increase due to billings arising during the period in excess of revenue recognized | 0 | 0 | |
Amounts transferred from contract assets to receivables | (917,885) | (785,279) | |
Currency effects and other, net, contract assets | (2,539) | (6,251) | |
Contract Assets, net (Current) | 277,734 | 272,914 | 229,297 |
Long-term Contract Assets, net | |||
Change In Contract With Customer, Asset And Liability [Roll Forward] | |||
Contract assets, net | 9,280 | 10,967 | |
Revenue recognized that was included in contract liabilities at the beginning of the period | 0 | 0 | |
Increase due to revenue recognized in the period in excess of billings | 0 | 0 | |
Increase due to billings arising during the period in excess of revenue recognized | 0 | 0 | |
Amounts transferred from contract assets to receivables | (1,666) | (1,747) | |
Currency effects and other, net, contract assets | (6,475) | 60 | |
Contract assets, net | 1,139 | 9,280 | 10,967 |
Contract Liabilities (Current) | |||
Change In Contract With Customer, Asset And Liability [Roll Forward] | |||
Contract liabilities | 221,095 | 201,702 | |
Revenue recognized that was included in contract liabilities at the beginning of the period | (180,522) | (125,257) | |
Increase due to revenue recognized in the period in excess of billings | 0 | 0 | |
Increase due to billings arising during the period in excess of revenue recognized | 140,391 | 135,679 | |
Amounts transferred from contract assets to receivables | 0 | 0 | |
Currency effects and other, net, contract liabilities | 13,263 | 8,971 | |
Contract liabilities | 194,227 | 221,095 | 201,702 |
Long-term Contract Liabilities | |||
Change In Contract With Customer, Asset And Liability [Roll Forward] | |||
Long-term Contract Liabilities | 822 | 1,652 | $ 1,370 |
Revenue recognized that was included in contract liabilities at the beginning of the period | 0 | 0 | |
Increase due to revenue recognized in the period in excess of billings | 0 | 0 | |
Increase due to billings arising during the period in excess of revenue recognized | 0 | 290 | |
Amounts transferred from contract assets to receivables | 0 | 0 | |
Currency effects and other, net, contract liabilities | $ (830) | $ (8) |
Dispositions (Details)
Dispositions (Details) $ in Thousands | Jun. 29, 2018site | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Business Acquisition [Line Items] | ||||||
Loss on sale of business | $ 0 | $ 0 | $ (7,727) | |||
Inventory write-down | $ 14,900 | $ 17,100 | 16,200 | |||
FPD | ||||||
Business Acquisition [Line Items] | ||||||
Divestiture of locations | site | 2 | |||||
Pre-tax impairment charge | $ 17,400 | $ 25,100 | ||||
Loss on sale of business | $ 7,700 | |||||
Inventory write-down | 7,700 | |||||
Asset impairment charges | $ 9,700 | |||||
Cash transfer from sale, net | $ 3,700 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Changes in Carrying Amount of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 1,193,010 | $ 1,197,640 |
Currency translation and other | 31,876 | (4,630) |
Ending balance | 1,224,886 | 1,193,010 |
FPD | ||
Goodwill [Roll Forward] | ||
Beginning balance | 786,630 | 790,139 |
Currency translation and other | 18,425 | (3,509) |
Ending balance | 805,055 | 786,630 |
FCD | ||
Goodwill [Roll Forward] | ||
Beginning balance | 406,380 | 407,501 |
Currency translation and other | 13,451 | (1,121) |
Ending balance | $ 419,831 | $ 406,380 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Changes in Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2011 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Ending Gross Amount | $ 296,790 | $ 290,386 | |
Finite-lived intangible assets, Accumulated Amortization | (217,064) | (198,603) | |
Indefinite-lived intangible assets, Ending Gross Amount | 90,355 | 90,607 | |
Indefinite-lived intangible assets, Accumulated Amortization | $ (1,585) | (1,585) | |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 4 years | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 40 years | ||
Engineering drawings | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Ending Gross Amount | $ 90,638 | 89,490 | |
Finite-lived intangible assets, Accumulated Amortization | $ (83,620) | (78,854) | |
Engineering drawings | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 10 years | ||
Engineering drawings | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 22 years | ||
Existing customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 5 years | ||
Finite-lived intangible assets, Ending Gross Amount | $ 85,214 | 81,844 | |
Finite-lived intangible assets, Accumulated Amortization | $ (62,796) | (53,468) | |
Existing customer relationships | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 5 years | ||
Existing customer relationships | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 10 years | ||
Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Ending Gross Amount | $ 27,015 | 26,132 | |
Finite-lived intangible assets, Accumulated Amortization | $ (27,015) | (26,132) | |
Patents | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 9 years | ||
Patents | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 16 years | ||
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Ending Gross Amount | $ 93,923 | 92,920 | |
Finite-lived intangible assets, Accumulated Amortization | $ (43,633) | $ (40,149) | |
Other | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 4 years | ||
Other | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 40 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Actual and Estimated Future Amortization) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Actual for year ended December 31, 2020 | $ 13,645 | $ 13,800 | $ 14,100 |
Estimated for year ended December 31, 2021 | 14,313 | ||
Estimated for year ended December 31, 2022 | 12,298 | ||
Estimated for year ended December 31, 2023 | 9,283 | ||
Estimated for year ended December 31, 2024 | 4,286 | ||
Estimated for year ended December 31, 2025 | 2,338 | ||
Thereafter | $ 37,208 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Inventory, Net [Abstract] | |||
Raw materials | $ 321,600 | $ 328,080 | |
Work in process | 210,174 | 192,993 | |
Finished goods | 221,532 | 218,408 | |
Less: Excess and obsolete reserve | (86,078) | (78,644) | |
Inventories, net | 667,228 | 660,837 | |
Inventory Write-down | $ 14,900 | $ 17,100 | $ 16,200 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Lease not yet commenced, expense | $ 0.4 | $ 34.7 |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 33 years |
Leases (Other Information) (Det
Leases (Other Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finance Leases: | ||
ROU assets recorded under finance leases | $ 27,624 | $ 19,606 |
Accumulated depreciation associated with finance leases | (9,463) | (7,551) |
Total finance leases ROU assets, net | 18,161 | 12,055 |
Total finance leases liabilities | 18,287 | 11,788 |
Operating Lease Costs: | ||
Fixed lease expense | 57,050 | 57,450 |
Variable lease expense | 7,299 | 6,492 |
Total operating lease expense | 64,349 | 63,942 |
Finance Lease Costs: | ||
Depreciation of finance lease ROU assets | 5,392 | 4,729 |
Interest on lease liabilities | 646 | 352 |
Total finance lease expense | $ 6,038 | $ 5,081 |
Leases (Supplemental Cash Flows
Leases (Supplemental Cash Flows Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 66,478 | $ 64,725 |
Financing cash flows from finance leases | 4,704 | 4,465 |
ROU assets obtained in exchange for lease obligations: | ||
Operating leases | 62,425 | 14,569 |
Finance leases | $ 13,124 | $ 10,615 |
Weighted average remaining lease term (in years) | ||
Operating leases | 9 years | 9 years |
Finance leases | 7 years | 3 years |
Weighted average discount rate (percent) | ||
Operating leases | 4.20% | 4.50% |
Finance leases | 3.50% | 3.60% |
Leases (Future Lease Payments)
Leases (Future Lease Payments) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
2021 | $ 42,570 | |
2022 | 36,596 | |
2023 | 30,458 | |
2024 | 26,334 | |
2025 | 20,977 | |
Thereafter | 94,991 | |
Total future minimum lease payments | 251,926 | |
Less: Imputed interest | (40,690) | |
Total operating leases liabilities | 211,236 | |
Liabilities recorded under operating leases (current) | 34,990 | $ 36,108 |
Operating lease liabilities | 176,246 | 151,523 |
Finance Leases | ||
2021 | 5,539 | |
2022 | 4,522 | |
2023 | 2,996 | |
2024 | 1,521 | |
2025 | 939 | |
Thereafter | 5,265 | |
Total future minimum lease payments | 20,782 | |
Less: Imputed interest | (2,495) | |
Total | 18,287 | $ 11,788 |
Debt due within one year | 5,354 | |
Long-term debt due after one year | $ 12,933 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Disclosures by Compensation Plans) (Details) - shares | 12 Months Ended | |
Dec. 31, 2020 | Jan. 01, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock available under stock option plan | 13,606,725 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
General vesting period (years) | 3 years | |
Age requirement | 55 years | |
Time in service requirement to vest over original vesting period | 10 years | |
2020 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized to issue under share based compensation plans | 12,500,000 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans (Information Regarding Stock Options) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding (in shares) | 114,943 | ||
Exercisable (in shares) | 114,943 | 0 | 0 |
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Vested In Period, Grant Date Fair Value | $ 2 | ||
Outstanding (in dollars per share) | $ 48.63 | ||
Granted (in shares) | 0 | 0 | 0 |
Canceled (in shares) | 0 | 0 | 0 |
Vested (in shares) | 0 | 0 | 0 |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
General vesting period (years) | 3 years | ||
General expiration period, from date of grant or time of termination (years) | 10 years | ||
Recognition of unearned compensation, (years) | 3 years | ||
Weighted Average Remaining Contractual Life | 6 years 3 months 18 days | 7 years 3 months 18 days | 8 years 3 months 18 days |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans (Information Regarding Restricted Shares) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
General vesting period (years) | 3 years | ||
Unearned compensation costs | $ 18.7 | $ 23.4 | |
Recognition of unearned compensation, (years) | 1 year | ||
Fair value of Restricted Shares vested | $ 26.4 | 16.8 | $ 14.3 |
Stock-based compensation expense | 27.3 | 23.9 | 19.9 |
Related income tax benefit | (6.2) | (5.4) | (4.5) |
Net stock-based compensation expense | $ 21.1 | $ 18.5 | $ 15.4 |
Shares | |||
Outstanding — beginning of year (in shares) | 1,690,600 | ||
Granted (in shares) | 730,065 | ||
Vested (in shares) | (587,301) | ||
Canceled (in shares) | (459,707) | ||
Outstanding — ending of year (in shares) | 1,373,657 | 1,690,600 | |
Weighted Average Grant-Date Fair Value | |||
Outstanding — beginning of year (in dollars per share) | $ 46.71 | ||
Granted (in dollars per share) | 46.56 | ||
Vested (in dollars per share) | 45.02 | ||
Canceled (in dollars per share) | 48.47 | ||
Outstanding — ending of year (in dollars per share) | $ 46.76 | $ 46.71 | |
Restricted Stock | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
General expiration period, from date of grant or time of termination (years) | 1 year | ||
General vesting period (years) | 1 year | ||
Restricted Stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
General expiration period, from date of grant or time of termination (years) | 3 years | ||
General vesting period (years) | 3 years | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
General vesting period (years) | 36 months | ||
Shares | |||
Outstanding — ending of year (in shares) | 539,000 | ||
Weighted Average Grant-Date Fair Value | |||
Period for achieving performance targets on performance based units (years) | 3 years | ||
Estimated vesting of shares based on performance shares | 537,000 | ||
Performance Shares | Minimum | |||
Weighted Average Grant-Date Fair Value | |||
Vesting percentage of grants, depending on achievement of specific performance targets | 0.00% | ||
Estimated vesting of shares based on performance shares | 0 | ||
Performance Shares | Maximum | |||
Weighted Average Grant-Date Fair Value | |||
Vesting percentage of grants, depending on achievement of specific performance targets | 200.00% | ||
Estimated vesting of shares based on performance shares | 1,078,000 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Details Textual) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Sep. 22, 2020EUR (€) | Dec. 31, 2019USD ($) | Mar. 31, 2016EUR (€) | Mar. 17, 2015 | |
2022 EUR Senior notes | ||||||
Derivative [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.25% | 1.25% | 1.25% | 1.25% | ||
Foreign Exchange Forward | ||||||
Derivative [Line Items] | ||||||
Derivative, lower remaining maturity range | 15 days | |||||
Derivative, upper remaining maturity range | 20 months | |||||
Currency Swap | ||||||
Derivative [Line Items] | ||||||
Derivative, notional amount | € | € 163.2 | |||||
Interest Payable | $ (0.6) | |||||
Currency Swap | Hierarchial Level 2 | ||||||
Derivative [Line Items] | ||||||
Derivative Liability | 18.1 | |||||
Not Designated as a Hedging Instrument | Foreign Exchange Forward | ||||||
Derivative [Line Items] | ||||||
Derivative, notional amount | $ 388.1 | $ 398.5 | ||||
2022 EUR Senior notes | ||||||
Derivative [Line Items] | ||||||
Designated amount, net investment hedge | € | € 336,300,000 | € 255,700,000 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities (Fair Value Balance Sheet Disclosures) (Details) - Not Designated as a Hedging Instrument - Forward Exchange Contracts - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair value disclosues, by balance sheet location | ||
Current derivative assets | $ 2,857 | $ 892 |
Noncurrent derivative assets | 249 | 15 |
Current derivative liabilities | 682 | 3,418 |
Noncurrent derivative liabilities | $ 0 | $ 8 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities (Fair Value of Forward Exchange Contracts Not Designated as Hedging Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Not Designated as a Hedging Instrument | Forward Exchange Contracts | |||
Derivative [Line Items] | |||
Loss recognized in income | $ (10,294) | $ (6,495) | $ (3,154) |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities (Cross Currency Swap) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Currency Swap | Net Investment Hedging | |||
Derivative [Line Items] | |||
Loss recognized in AOCL | $ (13,836) | $ 0 | $ 0 |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities (Remeasurement) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Net Investment Hedging | |||
Derivative [Line Items] | |||
Loss recorded in AOCL | $ (34,973) | $ (12,084) | $ (17,164) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Details) $ in Millions | Dec. 31, 2020USD ($) |
Estimated fair value | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Senior Notes | $ 1,778.4 |
Carrying value | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Senior Notes | $ 1,701.5 |
Details of Certain Consolidat_3
Details of Certain Consolidated Balance Sheet Captions (Accounts Receivable, net) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Details of Certain Consolidated Balance Sheet Captions [Abstract] | ||
Trade accounts receivables | $ 808,459 | $ 830,919 |
Less: allowance for doubtful accounts | (59,280) | (47,269) |
Other short-term receivables | 20,179 | 18,031 |
Less: allowance for doubtful accounts | (15,896) | (6,143) |
Accounts receivable, net | $ 753,462 | $ 795,538 |
Details of Certain Consolidat_4
Details of Certain Consolidated Balance Sheet Captions (Property, Plant and Equipment, net) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 1,650,221 | $ 1,578,474 |
Less: accumulated depreciation | (1,093,348) | (1,014,910) |
Property, plant and equipment, net | 556,873 | 563,564 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 65,894 | 64,778 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 446,008 | 419,454 |
Machinery, equipment and tooling | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 699,256 | 666,376 |
Software, furniture and fixtures and other | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 439,063 | $ 427,866 |
Details of Certain Consolidat_5
Details of Certain Consolidated Balance Sheet Captions (Accrued Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Details of Certain Consolidated Balance Sheet Captions [Abstract] | ||
Wages, compensation and other benefits | $ 225,133 | $ 192,354 |
Commissions and royalties | 22,847 | 23,027 |
Warranty costs and late delivery penalties | 27,757 | 30,625 |
Sales and use tax | 29,067 | 18,146 |
Income tax | 31,378 | 20,018 |
Other | 127,040 | 117,215 |
Accrued liabilities | $ 463,222 | $ 401,385 |
Other accrued liabilities maximum percentage of current liabilities | 5.00% |
Details of Certain Consolidat_6
Details of Certain Consolidated Balance Sheet Captions (Retirement Obligations and Other Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Details of Certain Consolidated Balance Sheet Captions [Abstract] | ||
Pension and postretirement benefits | $ 225,994 | $ 199,603 |
Deferred taxes | 84,345 | 149,633 |
Operating lease liabilities | 176,246 | 151,523 |
Legal and environmental | 101,203 | 99,744 |
Uncertain tax positions and other tax liabilities | 50,259 | 42,086 |
Other | 54,286 | 39,928 |
Retirement obligations and other liabilities | $ 692,333 | $ 682,517 |
Equity Method Investments (Deta
Equity Method Investments (Details) | Dec. 31, 2020ventures |
Schedule of Equity Method Investments [Line Items] | |
Number of joint ventures | 6 |
Chile | |
Schedule of Equity Method Investments [Line Items] | |
Number of joint ventures | 1 |
China | |
Schedule of Equity Method Investments [Line Items] | |
Number of joint ventures | 1 |
India | |
Schedule of Equity Method Investments [Line Items] | |
Number of joint ventures | 1 |
Saudi Arabia | |
Schedule of Equity Method Investments [Line Items] | |
Number of joint ventures | 1 |
South Korea | |
Schedule of Equity Method Investments [Line Items] | |
Number of joint ventures | 1 |
United Arab Emirates | |
Schedule of Equity Method Investments [Line Items] | |
Number of joint ventures | 1 |
Debt and Finance Lease Obliga_3
Debt and Finance Lease Obligations (Debt Including Capital Lease Obligations) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 14, 2020 | Dec. 31, 2019 | Mar. 17, 2015 | Nov. 01, 2013 | Sep. 11, 2012 |
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 1,726,906 | |||||
Finance lease obligations and other borrowings | 25,390 | $ 23,103 | ||||
Debt and finance lease obligations | 1,726,906 | 1,377,249 | ||||
Less amounts due within one year | 8,995 | 11,272 | ||||
Total debt due after one year | $ 1,717,911 | $ 1,365,977 | ||||
2022 EUR Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate (as a percentage) | 1.25% | 1.25% | 1.25% | |||
Unamortized discount and debt issuance costs | $ 1,070 | $ 2,653 | ||||
Long-term debt | $ 410,243 | $ 557,847 | ||||
2022 Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate (as a percentage) | 3.50% | 3.50% | 3.50% | |||
Unamortized discount and debt issuance costs | $ 1,235 | $ 1,924 | ||||
Long-term debt | $ 498,765 | $ 498,076 | ||||
2023 Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate (as a percentage) | 4.00% | 4.00% | 4.00% | |||
Unamortized discount and debt issuance costs | $ 1,345 | $ 1,777 | ||||
Long-term debt | $ 298,655 | $ 298,223 | ||||
2030 USD Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate (as a percentage) | 3.50% | 3.50% | 3.50% | |||
Debt issuance costs | $ 6,147 | |||||
Long-term debt | $ 493,853 | $ 0 |
Debt and Finance Lease Obliga_4
Debt and Finance Lease Obligations (Maturities of Debt by Type) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 8,995 |
2022 | 925,403 |
2023 | 298,655 |
Thereafter | 493,853 |
Total | $ 1,726,906 |
Debt and Finance Lease Obliga_5
Debt and Finance Lease Obligations (Senior Notes) (Details) | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2020USD ($) | Dec. 31, 2020 | Sep. 14, 2020USD ($) | Dec. 31, 2019 | Mar. 17, 2015EUR (€) | Nov. 01, 2013USD ($) | Sep. 11, 2012USD ($) | |
2030 USD Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 500,000,000 | ||||||
Interest rate (as a percentage) | 3.50% | 3.50% | 3.50% | ||||
Price of senior notes, stated as percentage of principal amount | 99.656% | ||||||
Basis points increase over Treasury Rate upon redemption | 0.0045 | ||||||
2022 EUR Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | € | € 500,000,000 | ||||||
Interest rate (as a percentage) | 1.25% | 1.25% | 1.25% | ||||
Price of senior notes, stated as percentage of principal amount | 99.336% | ||||||
Proceeds from (Repayments of) Long-term Debt and Capital Securities | $ 191,400,000 | ||||||
Loss on extinguishment | $ 1,200,000 | ||||||
Redemption price, states as percentage of principal amount | 100.00% | ||||||
Basis points increase over Treasury Rate upon redemption | 0.0025 | ||||||
Redemption price, percentage of principal amount redeemed | 100.00% | ||||||
2023 Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 300,000,000 | ||||||
Interest rate (as a percentage) | 4.00% | 4.00% | 4.00% | ||||
Price of senior notes, stated as percentage of principal amount | 99.532% | ||||||
Basis points increase over Treasury Rate upon redemption | 0.0025 | ||||||
2022 Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 500,000,000 | ||||||
Interest rate (as a percentage) | 3.50% | 3.50% | 3.50% | ||||
Price of senior notes, stated as percentage of principal amount | 99.615% | ||||||
Redemption price, states as percentage of principal amount | 100.00% | ||||||
Basis points increase over Treasury Rate upon redemption | 0.0030 |
Debt and Finance Lease Obliga_6
Debt and Finance Lease Obligations (Senior Credit Facility) (Details) | Jul. 16, 2019USD ($) | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / shares | Dec. 31, 2018USD ($) | Jun. 30, 2020 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 04, 2020USD ($)$ / shares |
Line of Credit Facility [Line Items] | ||||||||
Common shares, par value (in dollars per share) | $ / shares | $ 1.25 | $ 1.25 | ||||||
Repayments of debt | $ 191,258,000 | $ 105,000,000 | $ 60,000,000 | |||||
Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Amount outstanding | 0 | 0 | ||||||
Current borrowing capacity | 741,900,000 | 711,500,000 | ||||||
Senior Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Letters of credit, amount outstanding | $ 58,100,000 | $ 88,500,000 | ||||||
Revolving Credit Facility | New Senior Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 800,000,000 | |||||||
Maximum increase in borrowing capacity | 400,000,000 | |||||||
Commitment fee percentage | 0.20% | |||||||
Revolving Credit Facility | New Credit Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt Instrument, Covenant, Maximum Amount Of Cash And Cash Equivalents Excluded From Leverage Ratio | $ 250,000,000 | |||||||
Common shares, par value (in dollars per share) | $ / shares | $ 1.25 | |||||||
Letter of Credit | New Senior Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | 750,000,000 | |||||||
Bridge Loan | New Senior Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum borrowing capacity | $ 30,000,000 | |||||||
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | New Senior Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 1.375% | |||||||
Base Rate | Revolving Credit Facility | New Senior Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 0.375% | |||||||
Minimum | Revolving Credit Facility | New Senior Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Unused capacity, commitment fee percentage | 0.09% | |||||||
Minimum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | New Senior Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 1.00% | |||||||
Minimum | Base Rate | Revolving Credit Facility | New Senior Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 0.00% | |||||||
Maximum | Revolving Credit Facility | New Senior Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Unused capacity, commitment fee percentage | 0.30% | |||||||
Maximum | Revolving Credit Facility | New Credit Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt Instrument, Covenant, Percentage Of Dividends And Share Repurchases | 115.00% | |||||||
Maximum | Revolving Credit Facility | New Credit Agreement | Forecast [Member] | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Debt Instrument, Covenant, Leverage Ratio | 4 | 4 | ||||||
Debt Instrument, Covenant, Leverage Ratio With Acquisitions | 4.50 | |||||||
Maximum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | New Senior Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 1.75% | |||||||
Maximum | Base Rate | Revolving Credit Facility | New Senior Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 0.75% |
Pension and Postretirement Be_3
Pension and Postretirement Benefits (Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Postretirement Medical Benefits | |||
Weighted average assumptions used to determine Benefit Obligations: | |||
Discount rate | 2.32% | 3.27% | 4.20% |
Weighted average assumptions used to determine net pension expense: | |||
Discount rate | 3.27% | 4.20% | 3.48% |
United States | Pension Plan | |||
Weighted average assumptions used to determine Benefit Obligations: | |||
Discount rate | 2.62% | 3.41% | 4.34% |
Rate of increase in compensation levels | 3.63% | 3.50% | 3.50% |
Weighted average assumptions used to determine net pension expense: | |||
Long-term rate of return on assets | 6.00% | 6.00% | 6.00% |
Discount rate | 3.41% | 4.34% | 3.63% |
Rate of increase in compensation levels | 3.56% | 3.50% | 4.01% |
Weighted-average interest crediting rates | 3.79% | 3.79% | 3.79% |
Foreign Plan | |||
Weighted average assumptions used to determine Benefit Obligations: | |||
Discount rate | 2.42% | ||
Rate of increase in compensation levels | 3.11% | 3.12% | 3.28% |
Weighted average assumptions used to determine net pension expense: | |||
Long-term rate of return on assets | 3.62% | ||
Discount rate | 1.61% | 2.42% | 2.25% |
Rate of increase in compensation levels | 3.12% | 3.28% | 3.25% |
Weighted-average interest crediting rates | 1.00% | 1.00% | 1.00% |
Foreign Plan | Pension Plan | |||
Weighted average assumptions used to determine Benefit Obligations: | |||
Discount rate | 1.23% | 1.61% | |
Weighted average assumptions used to determine net pension expense: | |||
Long-term rate of return on assets | 2.37% | 3.37% |
Pension and Postretirement Be_4
Pension and Postretirement Benefits (Details Textual) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020USD ($)plan | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan expense | $ 20,000 | $ 20,400 | $ 18,700 |
Postretirement Medical Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.32% | 3.27% | 4.20% |
Company contributions | $ 3,200 | $ 2,900 | $ 3,200 |
Assumed rate of increase in medical costs | 7.00% | 7.50% | 7.00% |
Minimum medical cost rate to be acheived | 5.00% | ||
United States | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.62% | 3.41% | 4.34% |
Long-term rate of return on assets | 6.00% | 6.00% | 6.00% |
Company contributions | $ 1,412 | $ 20,552 | |
United States | Pension Plan | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated contributions in the next year | $ 20,000 | ||
United States | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, target allocation (as a percent) | 43.00% | ||
United States | Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, target allocation (as a percent) | 57.00% | ||
United States | Fixed Income | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, target allocation (as a percent) | 57.00% | 57.00% | |
Plan assets, actual allocation (as a percent) | 56.00% | 59.00% | |
Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.42% | ||
Long-term rate of return on assets | 3.62% | ||
Foreign Plan | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 1.23% | 1.61% | |
Long-term rate of return on assets | 2.37% | 3.37% | |
Company contributions | $ 11,279 | $ 16,782 | |
Estimated contributions in the next year | $ 2,000 | ||
Number of plans Non-US Assets | plan | 2 | ||
Foreign Plan | Fixed Income | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, target allocation (as a percent) | 51.00% | 50.00% | |
Plan assets, actual allocation (as a percent) | 51.00% | 50.00% | |
Foreign Plan | U.K. , the Netherlands and Canadian Plan Assets | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, actual allocation (as a percent) | 94.00% |
Pension and Postretirement Be_5
Pension and Postretirement Benefits (Net Benefit Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Postretirement Medical Benefits | |||
Components of the net periodic cost for retirement and postretirement benefits | |||
Interest cost | $ 596 | $ 754 | $ 779 |
Amortization of unrecognized net loss | (132) | (215) | (764) |
Amortization of unrecognized prior service cost (benefit) | 122 | 122 | 122 |
U.S. net pension expense | 586 | 661 | 137 |
United States | Pension Plan | |||
Components of the net periodic cost for retirement and postretirement benefits | |||
Service cost | 25,893 | 23,245 | 22,195 |
Interest cost | 15,100 | 17,584 | 15,789 |
Expected return on plan assets | (25,794) | (25,645) | (25,704) |
Settlement loss (gain) and other | 128 | 0 | (462) |
Amortization of unrecognized prior service cost | 184 | 164 | 164 |
Amortization of unrecognized net loss | 6,977 | 3,675 | 5,514 |
Amortization of unrecognized prior service cost (benefit) | 57 | 211 | |
U.S. net pension expense | 22,488 | 19,023 | 17,496 |
Foreign Plan | Pension Plan | |||
Components of the net periodic cost for retirement and postretirement benefits | |||
Service cost | 7,052 | 5,728 | 7,208 |
Interest cost | 6,572 | 8,867 | 8,970 |
Expected return on plan assets | (5,018) | (7,535) | (8,747) |
Settlement loss (gain) and other | 708 | 859 | (521) |
Amortization of unrecognized net loss | 4,315 | 2,933 | 3,626 |
Amortization of unrecognized prior service cost (benefit) | 262 | 265 | 33 |
U.S. net pension expense | $ 13,891 | $ 11,117 | $ 10,569 |
Pension and Postretirement Be_6
Pension and Postretirement Benefits (Funded Status) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Postretirement Medical Benefits | |||
Funded status of plan: | |||
Benefit Obligation | $ (18,648) | $ (18,862) | $ (18,810) |
Funded status | (18,648) | (18,862) | |
United States | Pension Plan | |||
Funded status of plan: | |||
Plan assets, at fair value | 477,680 | 482,553 | 425,792 |
Benefit Obligation | (487,418) | (471,462) | (432,595) |
Funded status | (9,738) | 11,091 | |
Foreign Plan | Pension Plan | |||
Funded status of plan: | |||
Plan assets, at fair value | 287,308 | 262,559 | 232,175 |
Benefit Obligation | (469,998) | (425,617) | $ (376,649) |
Funded status | $ (182,690) | $ (163,058) |
Pension and Postretirement Be_7
Pension and Postretirement Benefits (Amounts Recognized in Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||
Noncurrent liabilities | $ (225,994) | $ (199,603) |
Postretirement Medical Benefits | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||
Current liabilities | (2,342) | (2,370) |
Noncurrent liabilities | (16,306) | (16,492) |
Funded status | (18,648) | (18,862) |
United States | Pension Plan | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||
Noncurrent assets | 0 | 16,396 |
Current liabilities | (233) | (348) |
Noncurrent liabilities | (9,505) | (4,957) |
Funded status | (9,738) | 11,091 |
Foreign Plan | Pension Plan | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||
Noncurrent assets | 18,910 | 16,379 |
Current liabilities | (8,121) | (7,609) |
Noncurrent liabilities | (193,479) | (171,828) |
Funded status | $ (182,690) | $ (163,058) |
Pension and Postretirement Be_8
Pension and Postretirement Benefits (Change in Benefit Obligation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Postretirement Medical Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance — January 1 | $ 18,862 | $ 18,810 | |
Interest cost | 596 | 754 | $ 779 |
Actuarial loss (gain) | 2,434 | 2,222 | |
Benefits paid | (4,167) | (3,902) | |
Employee contributions | 916 | 964 | |
Medicare subsidies receivable | 7 | 14 | |
Balance — December 31 | 18,648 | 18,862 | 18,810 |
United States | Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance — January 1 | 471,462 | 432,595 | |
Service cost | 25,893 | 23,245 | 22,195 |
Interest cost | 15,100 | 17,584 | 15,789 |
Plan amendments and settlements | (953) | 276 | |
Actuarial loss (gain) | 29,166 | 31,214 | |
Benefits paid | (53,250) | (33,452) | |
Balance — December 31 | 487,418 | 471,462 | 432,595 |
Accumulated benefit obligations | 486,501 | 470,643 | |
Foreign Plan | Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance — January 1 | 425,617 | 376,649 | |
Service cost | 7,052 | 5,728 | 7,208 |
Interest cost | 6,572 | 8,867 | 8,970 |
Actuarial loss (gain) | 23,781 | 48,888 | |
Benefits paid | (15,700) | (14,526) | |
Employee contributions | 80 | 78 | |
Settlements and other | (2,701) | (3,713) | |
Currency translation impact | 25,297 | 3,646 | |
Balance — December 31 | 469,998 | 425,617 | $ 376,649 |
Accumulated benefit obligations | $ 446,097 | $ 404,035 |
Pension and Postretirement Be_9
Pension and Postretirement Benefits (Expected Benefit Payments) (Details) $ in Millions | Dec. 31, 2020USD ($) |
Postretirement Medical Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected Payment, 2020 | $ 2.4 |
Expected Payment, 2021 | 2.2 |
Expected Payment, 2022 | 2 |
Expected Payment, 2023 | 1.8 |
Expected Payment, 2024 | 1.6 |
Expected Payment, 2025-2029 | 6.1 |
United States | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected Payment, 2020 | 43.3 |
Expected Payment, 2021 | 42.2 |
Expected Payment, 2022 | 42.8 |
Expected Payment, 2023 | 41.2 |
Expected Payment, 2024 | 42.4 |
Expected Payment, 2025-2029 | 196.3 |
Foreign Plan | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected Payment, 2020 | 17.6 |
Expected Payment, 2021 | 18.1 |
Expected Payment, 2022 | 18.1 |
Expected Payment, 2023 | 19.1 |
Expected Payment, 2024 | 18.7 |
Expected Payment, 2025-2029 | $ 100.3 |
Pension and Postretirement B_10
Pension and Postretirement Benefits (Change in Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Postretirement Medical Benefits | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax [Abstract] | |||
Balance — January 1 | $ 656 | $ 2,425 | |
Amortization of net loss | (101) | (164) | |
Amortization of prior service cost | 94 | 94 | |
Net (loss) gain arising during the year | (1,862) | (1,699) | |
Prior service cost arising during the year | (122) | (122) | $ (122) |
Balance — December 31 | (1,213) | 656 | 2,425 |
United States | Pension Plan | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax [Abstract] | |||
Balance — January 1 | (49,510) | (62,018) | |
Amortization of net loss | 5,336 | 2,809 | |
Amortization of prior service cost | 140 | 125 | |
Net (loss) gain arising during the year | (5,328) | 9,785 | |
Settlement gain | 98 | 0 | |
Prior service cost arising during the year | (57) | (211) | |
Balance — December 31 | (49,321) | (49,510) | (62,018) |
Foreign Plan | Pension Plan | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax [Abstract] | |||
Balance — January 1 | (89,337) | (62,088) | |
Amortization of net loss | 4,410 | 2,946 | |
Net (loss) gain arising during the year | (7,432) | (29,910) | |
Prior service cost arising during the year | (262) | (265) | (33) |
Settlement losses | 681 | 746 | |
Prior service cost arising during the year | (467) | 0 | |
Currency translation impact and other | (5,101) | (1,031) | |
Balance — December 31 | $ (97,246) | $ (89,337) | $ (62,088) |
Pension and Postretirement B_11
Pension and Postretirement Benefits (Amounts Recognized in Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Postretirement Medical Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized net gain (loss) | $ (470) | $ 1,512 | |
Unrecognized prior service cost | (743) | (856) | |
Accumulated other comprehensive loss, net of tax | (1,213) | 656 | $ 2,425 |
United States | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized net gain (loss) | (48,460) | (48,578) | |
Unrecognized prior service cost | (861) | (932) | |
Accumulated other comprehensive loss, net of tax | (49,321) | (49,510) | (62,018) |
Foreign Plan | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized net gain (loss) | (93,417) | (85,891) | |
Unrecognized prior service cost | (3,829) | (3,446) | |
Accumulated other comprehensive loss, net of tax | $ (97,246) | $ (89,337) | $ (62,088) |
Pension and Postretirement B_12
Pension and Postretirement Benefits (Plan Assets) (Details) - Pension Plan - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
United States | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | $ 482,553 | $ 425,792 |
Return on plan assets | 47,992 | 69,663 |
Company contributions | 1,412 | 20,552 |
Benefits paid | (53,250) | (33,454) |
Settlements | (1,027) | 0 |
Ending balance | 477,680 | 482,553 |
Fair Value | 482,553 | 482,553 |
United States | Hierarchial Level 1 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 4,994 | |
Ending balance | 5,986 | 4,994 |
Fair Value | 4,994 | 4,994 |
United States | Hierarchial Level 2 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 477,559 | |
Ending balance | 471,694 | 477,559 |
Fair Value | 477,559 | 477,559 |
United States | Hierarchial Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
United States | Cash and Cash Equivalents | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 4,994 | |
Ending balance | 5,986 | 4,994 |
Fair Value | 4,994 | 4,994 |
United States | Cash and Cash Equivalents | Hierarchial Level 1 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 4,994 | |
Ending balance | 5,986 | 4,994 |
Fair Value | 4,994 | 4,994 |
United States | Cash and Cash Equivalents | Hierarchial Level 2 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
United States | Cash and Cash Equivalents | Hierarchial Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
United States | Global Equity | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 135,350 | |
Ending balance | 142,401 | 135,350 |
Fair Value | 135,350 | 135,350 |
United States | Global Equity | Hierarchial Level 1 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
United States | Global Equity | Hierarchial Level 2 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 135,350 | |
Ending balance | 142,401 | 135,350 |
Fair Value | 135,350 | 135,350 |
United States | Global Equity | Hierarchial Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
United States | Global Real Assets | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 60,523 | |
Ending balance | 61,604 | 60,523 |
Fair Value | 60,523 | 60,523 |
United States | Global Real Assets | Hierarchial Level 1 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
United States | Global Real Assets | Hierarchial Level 2 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 60,523 | |
Ending balance | 61,604 | 60,523 |
Fair Value | 60,523 | 60,523 |
United States | Global Real Assets | Hierarchial Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
United States | Diversified Credit | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 56,375 | |
Ending balance | 66,995 | 56,375 |
Fair Value | 56,375 | 56,375 |
United States | Diversified Credit | Hierarchial Level 1 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
United States | Diversified Credit | Hierarchial Level 2 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 56,375 | |
Ending balance | 66,995 | 56,375 |
Fair Value | 56,375 | 56,375 |
United States | Diversified Credit | Hierarchial Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
United States | Liability Driven Investment | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 225,311 | |
Ending balance | 200,694 | 225,311 |
Fair Value | 225,311 | 225,311 |
United States | Liability Driven Investment | Hierarchial Level 1 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
United States | Liability Driven Investment | Hierarchial Level 2 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 225,311 | |
Ending balance | 200,694 | 225,311 |
Fair Value | 225,311 | 225,311 |
United States | Liability Driven Investment | Hierarchial Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
Foreign Plan | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 262,559 | 232,175 |
Return on plan assets | 21,897 | 23,793 |
Company contributions | 11,279 | 16,782 |
Benefits paid | (15,700) | (14,526) |
Employee contributions | 80 | 78 |
Settlements | (2,939) | (3,688) |
Currency translation impact and other | 10,132 | 7,945 |
Ending balance | 287,308 | 262,559 |
Fair Value | 262,559 | 232,175 |
Foreign Plan | Hierarchial Level 1 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 5,026 | |
Ending balance | 2,304 | 5,026 |
Fair Value | 5,026 | 5,026 |
Foreign Plan | Hierarchial Level 2 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 187,742 | |
Ending balance | 209,052 | 187,742 |
Fair Value | 187,742 | 187,742 |
Foreign Plan | Hierarchial Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 69,791 | |
Ending balance | 75,952 | 69,791 |
Fair Value | 69,791 | 69,791 |
Foreign Plan | Cash and Cash Equivalents | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 5,026 | |
Ending balance | 2,304 | 5,026 |
Fair Value | 5,026 | 5,026 |
Foreign Plan | Cash and Cash Equivalents | Hierarchial Level 1 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 5,026 | |
Ending balance | 2,304 | 5,026 |
Fair Value | 5,026 | 5,026 |
Foreign Plan | Cash and Cash Equivalents | Hierarchial Level 2 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
Foreign Plan | Cash and Cash Equivalents | Hierarchial Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
Foreign Plan | Global Equity | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 2,411 | |
Ending balance | 2,451 | 2,411 |
Fair Value | 2,411 | 2,411 |
Foreign Plan | Global Equity | Hierarchial Level 1 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
Foreign Plan | Global Equity | Hierarchial Level 2 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 2,411 | |
Ending balance | 2,451 | 2,411 |
Fair Value | 2,411 | 2,411 |
Foreign Plan | Global Equity | Hierarchial Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
Foreign Plan | North American Companies | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 2,501 | |
Ending balance | 2,555 | 2,501 |
Fair Value | 2,501 | 2,501 |
Foreign Plan | North American Companies | Hierarchial Level 1 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
Foreign Plan | North American Companies | Hierarchial Level 2 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 2,501 | |
Ending balance | 2,555 | 2,501 |
Fair Value | 2,501 | 2,501 |
Foreign Plan | North American Companies | Hierarchial Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
Foreign Plan | U.K. Government Gilt Index | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 113,855 | |
Ending balance | 112,298 | 113,855 |
Fair Value | 113,855 | 113,855 |
Foreign Plan | U.K. Government Gilt Index | Hierarchial Level 1 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
Foreign Plan | U.K. Government Gilt Index | Hierarchial Level 2 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 113,855 | |
Ending balance | 112,298 | 113,855 |
Fair Value | 113,855 | 113,855 |
Foreign Plan | U.K. Government Gilt Index | Hierarchial Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
Foreign Plan | Liability Driven Investment | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 20,011 | |
Ending balance | 34,543 | 20,011 |
Fair Value | 20,011 | 20,011 |
Foreign Plan | Liability Driven Investment | Hierarchial Level 1 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
Foreign Plan | Liability Driven Investment | Hierarchial Level 2 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 20,011 | |
Ending balance | 34,543 | 20,011 |
Fair Value | 20,011 | 20,011 |
Foreign Plan | Liability Driven Investment | Hierarchial Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
Foreign Plan | Multi-Asset Category | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 48,964 | |
Ending balance | 57,205 | 48,964 |
Fair Value | 48,964 | 48,964 |
Foreign Plan | Multi-Asset Category | Hierarchial Level 1 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
Foreign Plan | Multi-Asset Category | Hierarchial Level 2 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 48,964 | |
Ending balance | 57,205 | 48,964 |
Fair Value | 48,964 | 48,964 |
Foreign Plan | Multi-Asset Category | Hierarchial Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
Foreign Plan | Buy-in Contracts | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 54,544 | |
Ending balance | 59,249 | 54,544 |
Fair Value | 54,544 | 54,544 |
Foreign Plan | Buy-in Contracts | Hierarchial Level 1 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
Foreign Plan | Buy-in Contracts | Hierarchial Level 2 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
Foreign Plan | Buy-in Contracts | Hierarchial Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Ending balance | 59,249 | |
Fair Value | 59,249 | |
Foreign Plan | Other types | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 15,247 | |
Ending balance | 16,703 | 15,247 |
Fair Value | 15,247 | 15,247 |
Foreign Plan | Other types | Hierarchial Level 1 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
Foreign Plan | Other types | Hierarchial Level 2 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 0 | |
Ending balance | 0 | 0 |
Fair Value | 0 | 0 |
Foreign Plan | Other types | Hierarchial Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 15,247 | |
Ending balance | 16,703 | 15,247 |
Fair Value | 15,247 | 15,247 |
Netherlands | Buy-in Contracts | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 25,900 | |
Ending balance | 27,400 | 25,900 |
Fair Value | 27,400 | 25,900 |
United Kingdom | Buy-in Contracts | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 28,600 | |
Ending balance | 31,800 | 28,600 |
Fair Value | $ 31,800 | $ 28,600 |
Pension and Postretirement B_13
Pension and Postretirement Benefits (Plan Assets by Percentage Allocation) (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
United States | Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 57.00% | |
Pension Plan | United States | Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 0.00% | 0.00% |
Plan assets, actual allocation (as a percent) | 1.00% | 1.00% |
Pension Plan | United States | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 43.00% | 43.00% |
Plan assets, actual allocation (as a percent) | 43.00% | 40.00% |
Pension Plan | United States | Global Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 31.00% | 31.00% |
Plan assets, actual allocation (as a percent) | 30.00% | 28.00% |
Pension Plan | United States | Global Real Assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 12.00% | 12.00% |
Plan assets, actual allocation (as a percent) | 13.00% | 12.00% |
Pension Plan | United States | Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 57.00% | 57.00% |
Plan assets, actual allocation (as a percent) | 56.00% | 59.00% |
Pension Plan | United States | Diversified Credit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 12.00% | 12.00% |
Plan assets, actual allocation (as a percent) | 14.00% | 12.00% |
Pension Plan | United States | Liability Driven Investment | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 45.00% | 45.00% |
Plan assets, actual allocation (as a percent) | 42.00% | 47.00% |
Pension Plan | Foreign Plan | Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 1.00% | 2.00% |
Plan assets, actual allocation (as a percent) | 1.00% | 2.00% |
Pension Plan | Foreign Plan | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 2.00% | 2.00% |
Plan assets, actual allocation (as a percent) | 2.00% | 2.00% |
Pension Plan | Foreign Plan | Global Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 1.00% | 1.00% |
Plan assets, actual allocation (as a percent) | 1.00% | 1.00% |
Pension Plan | Foreign Plan | North American Companies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 1.00% | 1.00% |
Plan assets, actual allocation (as a percent) | 1.00% | 1.00% |
Pension Plan | Foreign Plan | Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 51.00% | 50.00% |
Plan assets, actual allocation (as a percent) | 51.00% | 50.00% |
Pension Plan | Foreign Plan | Liability Driven Investment | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 12.00% | 7.00% |
Plan assets, actual allocation (as a percent) | 12.00% | 7.00% |
Pension Plan | Foreign Plan | U.K. Government Gilt Index | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 39.00% | 43.00% |
Plan assets, actual allocation (as a percent) | 39.00% | 43.00% |
Pension Plan | Foreign Plan | Other types | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 46.00% | 46.00% |
Plan assets, actual allocation (as a percent) | 46.00% | 46.00% |
Pension Plan | Foreign Plan | Multi-Asset Category | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 20.00% | 19.00% |
Plan assets, actual allocation (as a percent) | 20.00% | 19.00% |
Pension Plan | Foreign Plan | Buy-in Contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 20.00% | 21.00% |
Plan assets, actual allocation (as a percent) | 20.00% | 21.00% |
Pension Plan | Foreign Plan | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 6.00% | 6.00% |
Plan assets, actual allocation (as a percent) | 6.00% | 6.00% |
Pension and Postretirement B_14
Pension and Postretirement Benefits (Accumulated and Projected Obligations) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Retirement Benefits [Abstract] | ||
Benefit Obligation | $ 735,912 | $ 229,793 |
Accumulated benefit obligation | 716,534 | 212,906 |
Fair value of plan assets | $ 526,502 | $ 46,718 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||
Net earnings of Flowserve Corporation | $ 56,900 | $ 51,000 | $ 9,700 | $ (1,300) | $ 72,600 | $ 59,800 | $ 54,000 | $ 52,400 | $ 116,326 | $ 238,828 | $ 104,508 | ||||||||
Dividends on restricted shares not expected to vest | 0 | 0 | 0 | ||||||||||||||||
Earnings attributable to common and participating shareholders | $ 116,326 | $ 238,828 | $ 104,508 | ||||||||||||||||
Weighted average shares: | |||||||||||||||||||
Common stock (in shares) | 130,373,000 | 131,012,000 | 130,794,000 | ||||||||||||||||
Participating securities (in shares) | 22,000 | 22,000 | 29,000 | ||||||||||||||||
Denominator for basic earnings per common share (in shares) | 130,395,000 | 131,034,000 | 130,823,000 | ||||||||||||||||
Effect of potentially dilutive securities (in shares) | 655,000 | 685,000 | 448,000 | ||||||||||||||||
Denominator for diluted earnings per common share (in shares) | 131,050,000 | 131,719,000 | 131,271,000 | ||||||||||||||||
Earnings per common share: | |||||||||||||||||||
Basic (in dollars per share) | $ 0.44 | [1] | $ 0.39 | [1] | $ 0.07 | [1] | $ (0.01) | [1] | $ 0.55 | [1] | $ 0.46 | [1] | $ 0.41 | [1] | $ 0.40 | [1] | $ 0.89 | $ 1.82 | $ 0.80 |
Diluted (in dollars per share) | $ 0.43 | [1] | $ 0.39 | [1] | $ 0.07 | [1] | $ (0.01) | [1] | $ 0.55 | [1] | $ 0.45 | [1] | $ 0.41 | [1] | $ 0.40 | [1] | $ 0.89 | $ 1.81 | $ 0.80 |
Antidilutive shares (in shares) | 375,203 | 140,459 | 88,656 | ||||||||||||||||
Litigation Settlement, Expense | $ 15,500 | $ 21,800 | $ 24,800 | ||||||||||||||||
[1] | Earnings per share is computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in weighted average quarterly shares outstanding. |
Legal Matters and Contingenci_3
Legal Matters and Contingencies (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020claimsite | Dec. 31, 2020USD ($)claimsite | Dec. 31, 2019USD ($)claim | Dec. 31, 2018USD ($)claim | |
Liability for Asbestos and Environmental Claims, Net [Roll Forward] | ||||
Beginning claims | 8,345 | 8,666 | ||
Pending claims, beginning | 8,666 | 12,447 | ||
New claims | 2,140 | 2,314 | 2,766 | |
Resolved claims | (2,203) | (2,601) | (5,980) | |
Other | 84 | (34) | (567) | |
Ending claims | 8,366 | 8,366 | 8,345 | 8,666 |
Pending claims, ending | 8,666 | |||
Number of former public waste disposal sites | site | 4 | 4 | ||
Litigation Settlement, Expense | $ | $ 15.5 | $ 21.8 | $ 24.8 | |
Payments For (Proceeds From) Insurance Settlements | $ | $ (5.5) | $ 12.2 | $ 12.6 |
Warranty Reserve (Details)
Warranty Reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |||
Balance — January 1 | $ 30,854 | $ 32,033 | $ 33,601 |
Accruals for warranty expense, net of adjustments | 21,701 | 26,215 | 28,454 |
Settlements made | (24,611) | (27,394) | (30,022) |
Balance — December 31 | $ 27,944 | $ 30,854 | $ 32,033 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 13, 2014 | |
Dividends per share (in dollars per share) | $ 0.80 | $ 0.76 | $ 0.76 | |
Treasury stock, shares acquired (in shares) | 1,057,115 | |||
Treasury Stock, Value, Acquired, Cost Method | $ 32,100,000 | $ 15,000,000 | ||
Remaining authorized repurchase amount | $ 113,600,000 | |||
Share repurchase program 2015 | ||||
Authorized repurchase amount | $ 500,000,000 | |||
Treasury stock, shares acquired (in shares) | 324,889 | 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | |||
U.S. federal | $ 40,234 | $ 22,001 | $ 12,079 |
Foreign | 42,487 | 61,976 | 29,968 |
State and local | 5,894 | 4,506 | 2,647 |
Total current | 88,615 | 88,483 | 44,694 |
Deferred: | |||
U.S. federal | (50,038) | (1,644) | 6,567 |
Foreign | 25,356 | (12,243) | (4,585) |
State and local | (3,902) | 897 | (126) |
Total deferred | (28,584) | (12,990) | 1,856 |
Total provision | 60,031 | 75,493 | 46,550 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Statutory federal income tax at 21% | 39,200 | 67,700 | 32,900 |
Foreign impact, net | (1,300) | 4,500 | (5,900) |
Impact of U.S. Tax Reform Act | 0 | 0 | (5,700) |
Change in valuation allowances | 26,900 | 300 | 15,700 |
State and local income taxes, net | 2,000 | 5,400 | 3,700 |
Research and development credit | (5,200) | (5,400) | 0 |
Other, net | $ (1,600) | $ 3,000 | $ 5,900 |
Effective tax rate | 32.10% | 23.40% | 29.80% |
Unrecorded foreign undistributed earnings taxes | $ 19,100 | ||
Deferred tax assets related to: | |||
Retirement benefits | 29,754 | $ 25,214 | |
Net operating loss carryforwards | 109,020 | 101,193 | |
Compensation accruals | 20,290 | 24,685 | |
Inventories | 36,402 | 34,846 | |
Credit and capital loss carryforwards | 136,956 | 131,744 | |
Warranty and accrued liabilities | 27,483 | 18,741 | |
Bad debt reserve | 17,455 | 30,884 | |
Operating lease liability | 25,446 | 27,799 | |
Other | 38,457 | 25,339 | |
Total deferred tax assets | 441,263 | 420,445 | |
Valuation allowances | (287,787) | (266,414) | |
Net deferred tax assets | 153,476 | 154,031 | |
Deferred tax liabilities related to: | |||
Property, plant and equipment | (11,714) | (26,311) | |
Goodwill and intangibles | (101,818) | (114,122) | |
Foreign undistributed earnings | (50,332) | (67,930) | |
Operating lease right-of-use-assets | (25,799) | (27,799) | |
Other | (17,621) | (12,623) | |
Total deferred tax liabilities | (207,284) | (248,785) | |
Deferred tax liabilities, net | (53,808) | (94,754) | |
Operating loss carryforward | 481,700 | ||
Net operating loss carryforwards and other deferred tax assets | 154,100 | ||
Earnings before income taxes comprised: | |||
U.S. | 73,109 | 110,500 | $ 68,838 |
Foreign | 113,703 | 211,933 | 87,600 |
Total | 186,812 | 322,433 | 156,438 |
Reconciliation of the total gross amount of unrecognized tax benefits, excluding interest and penalities: | |||
Balance — | 40,600 | 41,200 | 51,500 |
Gross amount of increase (decrease) in unrecognized tax benefits resulting from tax positions taken: | |||
During a prior year | (6,600) | ||
During a prior year | 3,800 | 8,800 | |
During the current period | 11,100 | 6,300 | 4,000 |
Decreases in unrecognized tax benefits relating to: | |||
Settlements with taxing authorities | (200) | (11,400) | (2,700) |
Lapse of the applicable statute of limitations | (2,500) | (3,200) | (3,700) |
Increase (decrease) in unrecognized tax benefits relating to foreign currency translation adjustments | 2,000 | ||
Increase (decrease) in unrecognized tax benefits relating to foreign currency translation adjustments | (1,100) | (1,300) | |
Balance — | 54,800 | $ 40,600 | $ 41,200 |
Gross unrecognized tax benefits | 73,400 | ||
Gross unrecognized tax benefits, accrued interest and penalties | 18,600 | ||
Unrecognized tax benefits, if recognized, would favorably impact effective tax rate | 62,300 | ||
Unrecognized tax benefits minimum amount of estimated reduction within the next twelve months | 8,000 | ||
State and Local Jurisdiction | |||
Deferred tax liabilities related to: | |||
Operating loss carryforward | 33,100 | ||
Foreign Tax Authority | |||
Deferred tax liabilities related to: | |||
Operating loss carryforward | 97,800 | ||
Tax credit carryforward | 35,900 | ||
Tax credit carryforward | $ 35,900 |
Business Segment Information (R
Business Segment Information (Reportable Segments) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($)segments | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of operating segments (in segments) | segments | 2 | ||||||||||
Summarized financial information of the reportable segments | |||||||||||
Sales to external customers | $ 985,300 | $ 924,300 | $ 925,000 | $ 893,500 | $ 1,068,200 | $ 995,700 | $ 990,000 | $ 885,800 | $ 3,728,134 | $ 3,939,697 | $ 3,835,699 |
Intersegment sales | 0 | 0 | 0 | ||||||||
Segment operating income (loss) | 250,277 | 386,623 | 227,701 | ||||||||
Depreciation and amortization | 100,753 | 105,904 | 112,473 | ||||||||
Identifiable assets | 5,314,677 | 4,938,277 | 5,314,677 | 4,938,277 | 4,649,369 | ||||||
Capital expenditures | 57,405 | 75,716 | 83,993 | ||||||||
Subtotal—Reportable Segments | |||||||||||
Summarized financial information of the reportable segments | |||||||||||
Sales to external customers | 3,728,134 | 3,939,697 | 3,835,699 | ||||||||
Intersegment sales | 5,085 | 5,464 | 6,453 | ||||||||
Segment operating income (loss) | 396,533 | 535,459 | 405,231 | ||||||||
Depreciation and amortization | 74,339 | 74,422 | 94,733 | ||||||||
Identifiable assets | 4,347,205 | 4,308,087 | 4,347,205 | 4,308,087 | 4,038,314 | ||||||
Capital expenditures | 35,757 | 40,899 | 55,106 | ||||||||
Eliminations and All Other | |||||||||||
Summarized financial information of the reportable segments | |||||||||||
Sales to external customers | 0 | 0 | 0 | ||||||||
Intersegment sales | (5,085) | (5,464) | (6,453) | ||||||||
Segment operating income (loss) | (146,256) | (148,836) | (177,530) | ||||||||
Depreciation and amortization | 26,414 | 31,482 | 17,740 | ||||||||
Identifiable assets | 967,472 | 630,190 | 967,472 | 630,190 | 611,055 | ||||||
Capital expenditures | 21,648 | 34,817 | 28,887 | ||||||||
FPD | |||||||||||
Summarized financial information of the reportable segments | |||||||||||
Sales to external customers | 2,673,705 | 2,704,445 | 2,620,488 | ||||||||
Intersegment sales | 1,965 | 1,833 | 2,816 | ||||||||
Segment operating income (loss) | 270,960 | 343,514 | 200,981 | ||||||||
Depreciation and amortization | 52,390 | 50,845 | 68,148 | ||||||||
Identifiable assets | 3,039,069 | 2,974,161 | 3,039,069 | 2,974,161 | 2,768,879 | ||||||
Capital expenditures | 21,714 | 26,450 | 40,648 | ||||||||
FCD | |||||||||||
Summarized financial information of the reportable segments | |||||||||||
Sales to external customers | 1,054,429 | 1,235,252 | 1,215,211 | ||||||||
Intersegment sales | 3,120 | 3,631 | 3,637 | ||||||||
Segment operating income (loss) | 125,573 | 191,945 | 204,250 | ||||||||
Depreciation and amortization | 21,949 | 23,577 | 26,585 | ||||||||
Identifiable assets | $ 1,308,136 | $ 1,333,926 | 1,308,136 | 1,333,926 | 1,269,435 | ||||||
Capital expenditures | $ 14,043 | $ 14,449 | $ 14,458 |
Business Segment Information (S
Business Segment Information (Sales and Long-lived Assets by Geographic Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 985,300 | $ 924,300 | $ 925,000 | $ 893,500 | $ 1,068,200 | $ 995,700 | $ 990,000 | $ 885,800 | $ 3,728,134 | $ 3,939,697 | $ 3,835,699 |
Percentage | 100.00% | 100.00% | 100.00% | ||||||||
Long-Lived Assets | $ 986,424 | $ 1,002,836 | $ 986,424 | $ 1,002,836 | $ 830,144 | ||||||
Percentage | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | ||||||
Sales Revenue, Goods, Net | Geographic Concentration Risk | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Percentage of net sales to international customers to total sales | 65.00% | 63.00% | 63.00% | ||||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 1,463,680 | $ 1,632,582 | $ 1,528,963 | ||||||||
Percentage | 39.30% | 41.40% | 39.90% | ||||||||
Long-Lived Assets | $ 455,622 | $ 481,474 | $ 455,622 | $ 481,474 | $ 353,767 | ||||||
Percentage | 46.20% | 48.00% | 46.20% | 48.00% | 42.60% | ||||||
EMA | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 1,385,245 | $ 1,397,308 | $ 1,424,498 | ||||||||
Percentage | 37.20% | 35.50% | 37.10% | ||||||||
Long-Lived Assets | $ 336,577 | $ 312,668 | $ 336,577 | $ 312,668 | $ 280,549 | ||||||
Percentage | 34.10% | 31.20% | 34.10% | 31.20% | 33.80% | ||||||
EMA | Sales Revenue, Goods, Net | Geographic Concentration Risk | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Percentage of net sales to international customers to total sales | 10.00% | ||||||||||
Asia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 535,440 | $ 551,759 | $ 539,898 | ||||||||
Percentage | 14.40% | 14.00% | 14.10% | ||||||||
Long-Lived Assets | $ 138,947 | $ 143,848 | $ 138,947 | $ 143,848 | $ 132,667 | ||||||
Percentage | 14.10% | 14.30% | 14.10% | 14.30% | 16.00% | ||||||
Asia Pacific | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 808,030 | $ 815,818 | $ 783,639 | ||||||||
Asia Pacific | Sales Revenue, Goods, Net | Geographic Concentration Risk | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Percentage of net sales to international customers to total sales | 10.00% | ||||||||||
Other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 343,769 | $ 358,048 | $ 342,340 | ||||||||
Percentage | 9.10% | 9.10% | 8.90% | ||||||||
Long-Lived Assets | $ 55,278 | $ 64,846 | $ 55,278 | $ 64,846 | $ 63,161 | ||||||
Percentage | 5.60% | 6.50% | 5.60% | 6.50% | 7.60% | ||||||
Other | Sales Revenue, Goods, Net | Geographic Concentration Risk | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Percentage of net sales to international customers to total sales | 10.00% | ||||||||||
Germany | Sales Revenue, Goods, Net | Geographic Concentration Risk | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Percentage of net sales to international customers to total sales | 7.00% | 6.00% | 7.00% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance - January 1 | $ (579,196) | $ (569,430) | |
Other comprehensive income (loss) before reclassifications | (18,408) | (15,775) | |
Amounts reclassified from AOCL | 9,417 | 6,009 | |
Other comprehensive income (loss) | (8,991) | (9,766) | $ (67,806) |
Balance - December 31 | (588,187) | (579,196) | (569,430) |
Accumulated net loss from net investment hedge, net of tax | 48,800 | 12,100 | |
Net of tax | (9,417) | (6,009) | |
Foreign Currency Translation Items | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance - January 1 | (441,364) | (447,925) | |
Other comprehensive income (loss) before reclassifications | 388 | 6,561 | |
Amounts reclassified from AOCL | 0 | 0 | |
Other comprehensive income (loss) | 388 | 6,561 | |
Balance - December 31 | (440,976) | (441,364) | (447,925) |
Net of tax | 0 | 0 | |
Pension and other post-retirement effects | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance - January 1 | (137,161) | (120,647) | |
Other comprehensive income (loss) before reclassifications | (18,979) | (22,523) | |
Amounts reclassified from AOCL | 9,417 | 6,009 | |
Other comprehensive income (loss) | (9,562) | (16,514) | |
Balance - December 31 | (146,723) | (137,161) | (120,647) |
Amount of settlement of reclassification adjustment from accumulated other comprehensive income (loss) | (836) | (859) | |
Tax benefit | 3,148 | 1,887 | |
Net of tax | (9,417) | (6,009) | |
Cash flow hedging activity | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance - January 1 | (671) | (858) | |
Other comprehensive income (loss) before reclassifications | 183 | 187 | |
Amounts reclassified from AOCL | 0 | 0 | |
Other comprehensive income (loss) | 183 | 187 | |
Balance - December 31 | (488) | (671) | (858) |
Net of tax | 0 | 0 | |
Noncontrolling Interests | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Other comprehensive income (loss) | 769 | 579 | 668 |
Foreign currency translation adjustments, attributable to noncontrolling interest | 5,900 | 5,100 | $ 4,500 |
Amortization of actuarial losses | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Reclassification from AOCI, before tax | (11,161) | (6,608) | |
Prior service costs | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Reclassification from AOCI, before tax | $ (568) | $ (429) |
Realignment and Transformatio_3
Realignment and Transformation Programs (Details) - USD ($) $ in Thousands | 12 Months Ended | 63 Months Ended | 72 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 21,107 | $ (16,252) | $ 19,432 | |
Non-Restructuring Charges | 60,963 | 20,185 | ||
Transformation Charges | 22,719 | 28,039 | ||
Total Realignment and Transformation Charges | 104,789 | 31,972 | ||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 6,703 | 11,927 | ||
Charges | 21,107 | (16,252) | 19,432 | |
Ending Balance | 18,255 | 6,703 | 18,255 | |
Subtotal—Reportable Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 21,123 | (16,252) | ||
Non-Restructuring Charges | 42,384 | 15,502 | ||
Total Realignment and Transformation Charges | 63,507 | (750) | ||
Restructuring Reserve [Roll Forward] | ||||
Charges | 21,123 | (16,252) | ||
All Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | (16) | 0 | ||
Non-Restructuring Charges | 18,579 | 4,683 | ||
Transformation Charges | 22,719 | 28,039 | ||
Total Realignment and Transformation Charges | 41,282 | 32,722 | ||
Restructuring Reserve [Roll Forward] | ||||
Charges | (16) | 0 | ||
Realignment Programs, 2020 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost | 80,000 | 80,000 | ||
Restructuring Charges | 19,432 | |||
Non-Restructuring Charges | 51,899 | |||
Total Realignment Charges | 71,331 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 19,432 | |||
Realignment Programs, 2020 | Subtotal—Reportable Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 19,432 | |||
Non-Restructuring Charges | 33,965 | |||
Total Realignment Charges | 53,397 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 19,432 | |||
Realignment Programs, 2020 | All Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0 | |||
Non-Restructuring Charges | 17,934 | |||
Total Realignment Charges | 17,934 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 0 | |||
Realignment Programs, 2015 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 362,400 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | $ 362,400 | |||
FPD | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 19,666 | (19,461) | ||
Non-Restructuring Charges | 30,494 | 13,542 | ||
Total Realignment and Transformation Charges | 50,160 | (5,919) | ||
Restructuring Reserve [Roll Forward] | ||||
Charges | 19,666 | (19,461) | ||
FPD | Realignment Programs, 2020 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 17,880 | |||
Non-Restructuring Charges | 29,884 | |||
Total Realignment Charges | 47,764 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 17,880 | |||
FCD | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 1,457 | 3,209 | ||
Non-Restructuring Charges | 11,890 | 1,960 | ||
Total Realignment and Transformation Charges | 13,347 | 5,169 | ||
Restructuring Reserve [Roll Forward] | ||||
Charges | 1,457 | 3,209 | ||
FCD | Realignment Programs, 2020 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 1,552 | |||
Non-Restructuring Charges | 4,081 | |||
Total Realignment Charges | 5,633 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 1,552 | |||
Cost of Sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 20,632 | 3,802 | 19,056 | |
Non-Restructuring Charges | 26,665 | 13,435 | ||
Total Realignment and Transformation Charges | 47,297 | 17,237 | ||
Restructuring Reserve [Roll Forward] | ||||
Charges | 20,632 | 3,802 | 19,056 | |
Cost of Sales | Subtotal—Reportable Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 20,632 | 3,802 | ||
Non-Restructuring Charges | 26,613 | 13,180 | ||
Total Realignment and Transformation Charges | 47,245 | 16,982 | ||
Restructuring Reserve [Roll Forward] | ||||
Charges | 20,632 | 3,802 | ||
Cost of Sales | All Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0 | 0 | ||
Non-Restructuring Charges | 52 | 255 | ||
Total Realignment and Transformation Charges | 52 | 255 | ||
Restructuring Reserve [Roll Forward] | ||||
Charges | 0 | 0 | ||
Cost of Sales | Realignment Programs, 2020 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 19,056 | |||
Non-Restructuring Charges | 18,782 | |||
Total Realignment Charges | 37,838 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 19,056 | |||
Cost of Sales | Realignment Programs, 2020 | Subtotal—Reportable Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 19,056 | |||
Non-Restructuring Charges | 18,730 | |||
Total Realignment Charges | 37,786 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 19,056 | |||
Cost of Sales | Realignment Programs, 2020 | All Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0 | |||
Non-Restructuring Charges | 52 | |||
Total Realignment Charges | 52 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 0 | |||
Cost of Sales | FPD | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 19,510 | 1,149 | ||
Non-Restructuring Charges | 19,328 | 11,438 | ||
Total Realignment and Transformation Charges | 38,838 | 12,587 | ||
Restructuring Reserve [Roll Forward] | ||||
Charges | 19,510 | 1,149 | ||
Cost of Sales | FPD | Realignment Programs, 2020 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 17,829 | |||
Non-Restructuring Charges | 19,203 | |||
Total Realignment Charges | 37,032 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 17,829 | |||
Cost of Sales | FCD | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 1,122 | 2,653 | ||
Non-Restructuring Charges | 7,285 | 1,742 | ||
Total Realignment and Transformation Charges | 8,407 | 4,395 | ||
Restructuring Reserve [Roll Forward] | ||||
Charges | 1,122 | 2,653 | ||
Cost of Sales | FCD | Realignment Programs, 2020 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 1,227 | |||
Non-Restructuring Charges | (473) | |||
Total Realignment Charges | 754 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 1,227 | |||
Selling, General and Administrative Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 475 | (16,054) | 376 | |
Non-Restructuring Charges | 34,298 | 6,750 | ||
Transformation Charges | 22,719 | 28,039 | ||
Total Realignment and Transformation Charges | 57,492 | 18,735 | ||
Restructuring Reserve [Roll Forward] | ||||
Charges | 475 | (16,054) | 376 | |
Selling, General and Administrative Expenses | Subtotal—Reportable Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 491 | (16,054) | ||
Non-Restructuring Charges | 15,771 | 2,322 | ||
Total Realignment and Transformation Charges | 16,262 | (13,732) | ||
Restructuring Reserve [Roll Forward] | ||||
Charges | 491 | (16,054) | ||
Selling, General and Administrative Expenses | All Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | (16) | 0 | ||
Non-Restructuring Charges | 18,527 | 4,428 | ||
Transformation Charges | 22,719 | 28,039 | ||
Total Realignment and Transformation Charges | 41,230 | 32,467 | ||
Restructuring Reserve [Roll Forward] | ||||
Charges | (16) | 0 | ||
Selling, General and Administrative Expenses | Realignment Programs, 2020 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 376 | |||
Non-Restructuring Charges | 33,117 | |||
Total Realignment Charges | 33,493 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 376 | |||
Selling, General and Administrative Expenses | Realignment Programs, 2020 | Subtotal—Reportable Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 376 | |||
Non-Restructuring Charges | 15,235 | |||
Total Realignment Charges | 15,611 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 376 | |||
Selling, General and Administrative Expenses | Realignment Programs, 2020 | All Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0 | |||
Non-Restructuring Charges | 17,882 | |||
Total Realignment Charges | 17,882 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 0 | |||
Selling, General and Administrative Expenses | FPD | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 156 | (16,610) | ||
Non-Restructuring Charges | 11,166 | 2,104 | ||
Total Realignment and Transformation Charges | 11,322 | (14,506) | ||
Restructuring Reserve [Roll Forward] | ||||
Charges | 156 | (16,610) | ||
Selling, General and Administrative Expenses | FPD | Realignment Programs, 2020 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 51 | |||
Non-Restructuring Charges | 10,681 | |||
Total Realignment Charges | 10,732 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 51 | |||
Selling, General and Administrative Expenses | FCD | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 335 | 556 | ||
Non-Restructuring Charges | 4,605 | 218 | ||
Total Realignment and Transformation Charges | 4,940 | 774 | ||
Restructuring Reserve [Roll Forward] | ||||
Charges | 335 | 556 | ||
Selling, General and Administrative Expenses | FCD | Realignment Programs, 2020 | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 325 | |||
Non-Restructuring Charges | 4,554 | |||
Total Realignment Charges | 4,879 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 325 | |||
Income tax expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | (4,000) | |||
Total Realignment and Transformation Charges | (4,000) | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | (4,000) | |||
Income tax expense | Subtotal—Reportable Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | (4,000) | |||
Total Realignment and Transformation Charges | (4,000) | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | (4,000) | |||
Income tax expense | All Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0 | |||
Total Realignment and Transformation Charges | 0 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 0 | |||
Income tax expense | FPD | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | (4,000) | |||
Total Realignment and Transformation Charges | (4,000) | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | (4,000) | |||
Income tax expense | FCD | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0 | |||
Total Realignment and Transformation Charges | 0 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 0 | |||
Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 17,150 | 4,394 | 15,328 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | 17,150 | 4,394 | 15,328 | |
Severance | Cost of Sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 16,927 | 2,183 | 15,244 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | 16,927 | 2,183 | 15,244 | |
Severance | Selling, General and Administrative Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 223 | 2,211 | 84 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | 223 | 2,211 | 84 | |
Severance | Income tax expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 0 | |||
Contract Termination | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 52 | 58 | 52 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | 52 | 58 | 52 | |
Contract Termination | Cost of Sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 52 | 58 | 52 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | 52 | 58 | 52 | |
Contract Termination | Selling, General and Administrative Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0 | 0 | 0 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | 0 | 0 | 0 | |
Contract Termination | Income tax expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 0 | |||
Asset Write-Downs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 1,420 | (20,211) | 1,426 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | 1,420 | (20,211) | 1,426 | |
Asset Write-Downs | Cost of Sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 1,409 | (1,782) | 1,412 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | 1,409 | (1,782) | 1,412 | |
Asset Write-Downs | Selling, General and Administrative Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 11 | (18,429) | 14 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | 11 | (18,429) | 14 | |
Asset Write-Downs | Income tax expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 0 | |||
Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 2,485 | (493) | 2,626 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | 2,485 | (493) | 2,626 | |
Other | Cost of Sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 2,244 | 3,343 | 2,348 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | 2,244 | 3,343 | 2,348 | |
Other | Selling, General and Administrative Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 241 | 164 | 278 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | 241 | 164 | $ 278 | |
Other | Income tax expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | (4,000) | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | (4,000) | |||
Charges Expected to be Settled in Cash | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 19,686 | 7,958 | ||
Restructuring Reserve [Roll Forward] | ||||
Charges | 19,686 | 7,958 | ||
Restructuring Cash Payment | ||||
Restructuring Reserve [Roll Forward] | ||||
Cash expenditures | (9,146) | (12,865) | ||
Other Non-Cash Adjustments | ||||
Restructuring Reserve [Roll Forward] | ||||
Other non-cash adjustments, including currency | $ 1,012 | $ (317) |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||
Sales | $ 985,300 | $ 924,300 | $ 925,000 | $ 893,500 | $ 1,068,200 | $ 995,700 | $ 990,000 | $ 885,800 | $ 3,728,134 | $ 3,939,697 | $ 3,835,699 | ||||||||
Gross profit | 295,400 | 285,200 | 269,700 | 266,500 | 349,500 | 332,900 | 317,900 | 289,000 | 1,116,769 | 1,289,343 | 1,190,869 | ||||||||
Earnings before income taxes | 61,300 | 72,300 | 16,700 | 36,500 | 90,900 | 84,400 | 77,400 | 69,700 | 186,812 | 322,433 | 156,437 | ||||||||
Net earnings (loss) attributable to Flowserve Corporation | $ 56,900 | $ 51,000 | $ 9,700 | $ (1,300) | $ 72,600 | $ 59,800 | $ 54,000 | $ 52,400 | $ 116,326 | $ 238,828 | $ 104,508 | ||||||||
Earnings per share: | |||||||||||||||||||
Basic (in dollars per share) | $ 0.44 | [1] | $ 0.39 | [1] | $ 0.07 | [1] | $ (0.01) | [1] | $ 0.55 | [1] | $ 0.46 | [1] | $ 0.41 | [1] | $ 0.40 | [1] | $ 0.89 | $ 1.82 | $ 0.80 |
Diluted (in dollars per share) | $ 0.43 | [1] | $ 0.39 | [1] | $ 0.07 | [1] | $ (0.01) | [1] | $ 0.55 | [1] | $ 0.45 | [1] | $ 0.41 | [1] | $ 0.40 | [1] | $ 0.89 | $ 1.81 | $ 0.80 |
[1] | Earnings per share is computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in weighted average quarterly shares outstanding. |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Additions Charged to Cost and Expenses | $ (26,900) | $ (300) | $ (15,700) | |
Allowance for doubtful accounts | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Year | [1] | 47,269 | 51,501 | 59,113 |
Additions Charged to Cost and Expenses | [1] | 18,929 | 3,762 | 8,050 |
Additions Charged to Other Accounts— Acquisitions and Related Adjustments | [1] | 0 | 0 | 0 |
Deductions From Reserve | [1] | (6,918) | (7,994) | (15,662) |
Balance at End of Year | [1] | 59,280 | 47,269 | 51,501 |
Allowance for other short-term receivables | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Year | 6,144 | 0 | ||
Additions Charged to Cost and Expenses | 9,753 | 6,144 | ||
Additions Charged to Other Accounts— Acquisitions and Related Adjustments | 0 | 0 | ||
Deductions From Reserve | 0 | 0 | ||
Balance at End of Year | 15,897 | 6,144 | 0 | |
Allowance for long-term receivables | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Year | 198,957 | 182,872 | 171,340 | |
Additions Charged to Cost and Expenses | 3,557 | 16,161 | 13,099 | |
Additions Charged to Other Accounts— Acquisitions and Related Adjustments | 0 | 0 | 0 | |
Deductions From Reserve | (15) | (76) | (1,567) | |
Balance at End of Year | 202,499 | 198,957 | 182,872 | |
Deferred tax asset valuation allowance | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Year | [2] | 266,414 | 133,929 | 119,309 |
Additions Charged to Cost and Expenses | [2] | 50,327 | 145,010 | 32,157 |
Additions Charged to Other Accounts— Acquisitions and Related Adjustments | [2] | (529) | 1,832 | (7,551) |
Deductions From Reserve | [2] | (28,425) | (14,357) | (9,986) |
Balance at End of Year | [2] | $ 287,787 | $ 266,414 | $ 133,929 |
[1] | Deductions from reserve represent accounts written off and recoveries related to trade accounts receivables. | |||
[2] | Deductions from reserve represent accounts written off and recoveries related to trade accounts receivables. |
Uncategorized Items - fls-20201
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201409Member |