Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 30, 2021 | |
Cover [Abstract] | ||
Entity Central Index Key | 0000030625 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
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 Blvd., Suite 700, | |
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 | |
Title of 12(b) Security | Common Stock, $1.25 Par Value | |
Trading Symbol | FLS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 130,262,789 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Sales | $ 898,178 | $ 925,012 | $ 1,755,486 | $ 1,818,526 |
Cost of sales | (619,940) | (655,305) | (1,226,348) | (1,282,360) |
Gross profit | 278,238 | 269,707 | 529,138 | 536,166 |
Selling, general and administrative expense | (210,789) | (229,343) | (409,104) | (474,794) |
Gain on sale of business | 1,806 | 0 | 1,806 | 0 |
Net earnings from affiliates | 2,907 | 3,088 | 6,425 | 6,283 |
Operating income | 72,162 | 43,452 | 128,265 | 67,655 |
Interest expense | (14,322) | (12,935) | (31,101) | (25,898) |
Loss on extinguishment of debt | (7,610) | 0 | ||
Interest income | 465 | 1,149 | 1,067 | 2,898 |
Other income (expense), net | (7,850) | (18,907) | (19,213) | 19,295 |
Earnings before income taxes | 50,455 | 12,759 | 71,408 | 63,950 |
Provision for income taxes | (2,711) | (4,485) | (6,503) | (41,453) |
Net earnings, including noncontrolling interests | 47,744 | 8,274 | 64,905 | 22,497 |
Less: Net earnings attributable to noncontrolling interests | (2,390) | (2,142) | (5,471) | (4,243) |
Net earnings attributable to Flowserve Corporation | $ 45,354 | $ 6,132 | $ 59,434 | $ 18,254 |
Net earnings per share attributable to Flowserve Corporation common shareholders: | ||||
Basic (in dollars per share) | $ 0.35 | $ 0.05 | $ 0.46 | $ 0.14 |
Diluted (in dollars per share) | $ 0.35 | $ 0.05 | $ 0.45 | $ 0.14 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings, including noncontrolling interests | $ 47,744 | $ 8,274 | $ 64,905 | $ 22,497 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments, net of taxes | 13,998 | 19,048 | 3,109 | (77,013) |
Pension and other postretirement effects, net of taxes | 2,059 | 1,758 | 6,318 | 8,067 |
Cash flow hedging activity | 15 | 44 | 217 | 98 |
Other comprehensive income (loss) | 16,072 | 20,850 | 9,644 | (68,848) |
Comprehensive income (loss), including noncontrolling interests | 63,816 | 29,124 | 74,549 | (46,351) |
Comprehensive (income) loss attributable to noncontrolling interests | (2,403) | (2,079) | (5,633) | (5,018) |
Comprehensive income (loss) attributable to Flowserve Corporation | $ 61,413 | $ 27,045 | $ 68,916 | $ (51,369) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation, taxes | $ (6,401) | $ (1,188) | $ (5,747) | $ 5,974 |
Pension and other postretirement effects, taxes | $ (472) | $ (444) | $ (942) | $ (842) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 630,397 | $ 1,095,274 |
Accounts receivable, net of allowance for expected credit losses of $74,782 and $75,176, respectively | 729,551 | 753,462 |
Contract assets, net of allowance for expected credit losses of $3,038 and $3,205, respectively | 262,231 | 277,734 |
Inventories, net | 690,145 | 667,228 |
Prepaid expenses and other | 128,364 | 110,635 |
Total current assets | 2,440,688 | 2,904,333 |
Property, plant and equipment, net of accumulated depreciation of $1,107,765 and $1,093,348, respectively | 526,101 | 556,873 |
Operating lease right-of-use assets, net | 204,075 | 208,125 |
Goodwill | 1,213,103 | 1,224,886 |
Deferred taxes | 46,904 | 30,538 |
Other intangible assets, net | 160,653 | 168,496 |
Other assets, net of allowance for expected credit losses of $67,770 and $67,842, respectively | 227,145 | 221,426 |
Total assets | 4,818,669 | 5,314,677 |
Current liabilities: | ||
Accounts payable | 393,608 | 440,199 |
Accrued liabilities | 422,161 | 463,222 |
Contract liabilities | 209,092 | 194,227 |
Debt due within one year | 9,599 | 8,995 |
Operating lease liabilities | 35,256 | 34,990 |
Total current liabilities | 1,069,716 | 1,141,633 |
Long-term debt due after one year | 1,307,149 | 1,717,911 |
Operating lease liabilities | 173,388 | 176,246 |
Retirement obligations and other liabilities | 497,724 | 517,566 |
Commitments and contingencies (See Note 11) | ||
Shareholders’ equity: | ||
Common shares, $1.25 par value, Shares authorized - 305,000, Shares issued - 176,793 | 220,991 | 220,991 |
Capital in excess of par value | 494,221 | 502,227 |
Retained earnings | 3,677,117 | 3,670,543 |
Treasury shares, at cost – 46,806 and 46,768 shares, respectively | (2,058,279) | (2,059,309) |
Deferred compensation obligation | 7,077 | 6,164 |
Accumulated other comprehensive loss | (600,143) | (609,625) |
Total Flowserve Corporation shareholders’ equity | 1,740,984 | 1,730,991 |
Noncontrolling interests | 29,708 | 30,330 |
Total equity | 1,770,692 | 1,761,321 |
Total liabilities and equity | $ 4,818,669 | $ 5,314,677 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Allowance for doubtful accounts | $ 74,782 | $ 75,176 |
Contract asset, allowance for doubtful accounts | 3,038 | 3,205 |
Accumulated depreciation on property, plant and equipment | 1,107,765 | 1,093,348 |
Other assets, allowance for credit loss | $ 67,770 | $ 67,842 |
Shareholders’ equity: | ||
Common shares, par value (in dollars per share) | $ 1.25 | $ 1.25 |
Common shares, shares authorized (in shares) | 305,000 | 305,000 |
Common shares, shares issued (in shares) | 176,793 | 176,793 |
Treasury shares, shares (in shares) | 46,806 | 46,768 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | ASU No. 2016-13 - Measurement of Credit Losses on Financial Instruments (Topic 326) | Common Stock | Capital in Excess of Par Value | Retained Earnings | Retained EarningsASU No. 2016-13 - Measurement of Credit Losses on Financial Instruments (Topic 326) | Treasury Stock | Deferred Compensation Obligation | Accumulated Other Comprehensive Income (Loss) | Non- controlling Interests |
Balance — (in shares) at Dec. 31, 2019 | 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 (in shares) | 446 | |||||||||
Stock activity under stock plans | (3,273) | (20,368) | $ 19,393 | (2,298) | ||||||
Stock-based compensation | 18,475 | 18,475 | ||||||||
Net earnings | 22,497 | 18,254 | 4,243 | |||||||
Cash dividends declared | (52,737) | (52,737) | ||||||||
Repurchases of common shares (in shares) | (1,057) | |||||||||
Repurchases of common shares | (32,112) | $ (32,112) | ||||||||
Other comprehensive income (loss), net of tax | (68,848) | (69,624) | 776 | |||||||
Other, net | (2,842) | (2,842) | ||||||||
Balance — (in shares) at Jun. 30, 2020 | 176,793 | 46,873 | ||||||||
Balance — at Jun. 30, 2020 | 1,646,210 | $ 220,991 | 499,152 | 3,610,470 | $ (2,064,302) | 6,036 | (653,916) | 27,779 | ||
Balance — (in shares) at Dec. 31, 2019 | 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] | ||||||||||
Net earnings | 81,259 | |||||||||
Other comprehensive income (loss), net of tax | (50,226) | |||||||||
Balance — at Sep. 30, 2020 | 1,702,343 | |||||||||
Balance — (in shares) at Dec. 31, 2019 | 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] | ||||||||||
Net earnings | 140,875 | |||||||||
Other comprehensive income (loss), net of tax | $ (24,562) | |||||||||
Balance — (in shares) at Dec. 31, 2020 | 176,793 | 176,793 | 46,768 | |||||||
Balance — at Dec. 31, 2020 | $ 1,761,321 | $ 220,991 | 502,227 | 3,670,543 | $ (2,059,309) | 6,164 | (609,625) | 30,330 | ||
Balance — (in shares) at Mar. 31, 2020 | 176,793 | 47,002 | ||||||||
Balance — at Mar. 31, 2020 | 1,639,833 | $ 220,991 | 497,721 | 3,630,694 | $ (2,069,063) | 8,324 | (674,829) | 25,995 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock activity under stock plans (in shares) | 129 | |||||||||
Stock activity under stock plans | (260) | (2,733) | $ 4,761 | (2,288) | ||||||
Stock-based compensation | 4,164 | 4,164 | ||||||||
Net earnings | 8,274 | 6,132 | 2,142 | |||||||
Cash dividends declared | (26,356) | (26,356) | ||||||||
Other comprehensive income (loss), net of tax | 20,850 | 20,913 | (63) | |||||||
Other, net | (295) | (295) | ||||||||
Balance — (in shares) at Jun. 30, 2020 | 176,793 | 46,873 | ||||||||
Balance — at Jun. 30, 2020 | 1,646,210 | $ 220,991 | 499,152 | 3,610,470 | $ (2,064,302) | 6,036 | (653,916) | 27,779 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings | 58,762 | |||||||||
Other comprehensive income (loss), net of tax | 18,620 | |||||||||
Balance — at Sep. 30, 2020 | 1,702,343 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings | 59,616 | |||||||||
Other comprehensive income (loss), net of tax | $ 25,665 | |||||||||
Balance — (in shares) at Dec. 31, 2020 | 176,793 | 176,793 | 46,768 | |||||||
Balance — at Dec. 31, 2020 | $ 1,761,321 | $ 220,991 | 502,227 | 3,670,543 | $ (2,059,309) | 6,164 | (609,625) | 30,330 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock activity under stock plans (in shares) | 402 | |||||||||
Stock activity under stock plans | (5,004) | (24,478) | $ 18,561 | 913 | ||||||
Stock-based compensation | 16,472 | 16,472 | ||||||||
Net earnings | 64,905 | 59,434 | 5,471 | |||||||
Cash dividends declared | (52,860) | (52,860) | ||||||||
Repurchases of common shares (in shares) | (440) | |||||||||
Repurchases of common shares | (17,531) | $ (17,531) | ||||||||
Other comprehensive income (loss), net of tax | 9,644 | 9,482 | 162 | |||||||
Other, net | $ (6,255) | (6,255) | ||||||||
Balance — (in shares) at Jun. 30, 2021 | 176,793 | 176,793 | 46,806 | |||||||
Balance — at Jun. 30, 2021 | $ 1,770,692 | $ 220,991 | 494,221 | 3,677,117 | $ (2,058,279) | 7,077 | (600,143) | 29,708 | ||
Balance — (in shares) at Mar. 31, 2021 | 176,793 | 46,496 | ||||||||
Balance — at Mar. 31, 2021 | 1,741,786 | $ 220,991 | 488,906 | 3,658,158 | $ (2,045,937) | 6,114 | (616,200) | 29,754 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock activity under stock plans (in shares) | 1 | |||||||||
Stock activity under stock plans | (327) | (1,397) | $ 107 | 963 | ||||||
Stock-based compensation | 6,712 | 6,712 | ||||||||
Net earnings | 47,744 | 45,354 | 2,390 | |||||||
Cash dividends declared | (26,395) | (26,395) | ||||||||
Repurchases of common shares (in shares) | (311) | |||||||||
Repurchases of common shares | (12,449) | $ (12,449) | ||||||||
Other comprehensive income (loss), net of tax | 16,072 | 16,058 | 14 | |||||||
Other, net | $ (2,451) | (1) | (2,450) | |||||||
Balance — (in shares) at Jun. 30, 2021 | 176,793 | 176,793 | 46,806 | |||||||
Balance — at Jun. 30, 2021 | $ 1,770,692 | $ 220,991 | $ 494,221 | $ 3,677,117 | $ (2,058,279) | $ 7,077 | $ (600,143) | $ 29,708 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows – Operating activities: | ||
Net earnings, including noncontrolling interests | $ 64,905 | $ 22,497 |
Adjustments to reconcile net earnings to net cash provided (used) by operating activities: | ||
Depreciation | 44,491 | 41,711 |
Amortization of intangible and other assets | 7,433 | 6,136 |
Loss on extinguishment of debt | 7,610 | 0 |
Stock-based compensation | 16,472 | 18,475 |
Foreign currency, asset write downs and other non-cash adjustments | 12,460 | 10,970 |
Change in assets and liabilities: | ||
Accounts receivable, net | 14,285 | 858 |
Inventories, net | (30,784) | (36,575) |
Contract assets, net | 12,232 | (44,276) |
Prepaid expenses and other assets, net | (16,187) | (3,956) |
Accounts payable | (41,146) | (9,201) |
Contract liabilities | 17,026 | 4,412 |
Accrued liabilities and income taxes payable | (37,123) | (1,140) |
Retirement obligations and other | (2,761) | 15,717 |
Net deferred taxes | (7,607) | (5,445) |
Net cash flows provided (used) by operating activities | 61,306 | 20,183 |
Cash flows – Investing activities: | ||
Capital expenditures | (22,541) | (29,072) |
Proceeds from disposal of assets | 2,085 | 10,810 |
Net affiliate investment activity | (3,384) | 0 |
Net cash flows provided (used) by investing activities | (23,840) | (18,262) |
Cash flows – Financing activities: | ||
Payments on long-term debt | (407,473) | 0 |
Proceeds under other financing arrangements | 1,386 | 1,990 |
Payments under other financing arrangements | (3,256) | (4,862) |
Repurchases of common shares | (17,531) | (32,112) |
Payments related to tax withholding for stock-based compensation | (5,777) | (3,850) |
Payments of dividends | (52,168) | (52,054) |
Other | (6,275) | (2,844) |
Net cash flows provided (used) by financing activities | (491,094) | (93,732) |
Effect of exchange rate changes on cash | (11,249) | (17,464) |
Net change in cash and cash equivalents | (464,877) | (109,275) |
Cash and cash equivalents at beginning of period | 1,095,274 | 670,980 |
Cash and cash equivalents at end of period | $ 630,397 | $ 561,705 |
Basis of Presentation and Accou
Basis of Presentation and Accounting Policies | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Accounting Policies | Basis of Presentation and Accounting Policies Basis of Presentation The accompanying condensed consolidated balance sheet as of June 30, 2021, the related condensed consolidated statements of income and comprehensive income (loss) for the three and six months ended June 30, 2021 and 2020, the condensed consolidated statements of shareholders' equity for the three and six months ended June 30, 2021 and 2020 and the condensed consolidated statements of cash flows for the six months ended June 30, 2021 and 2020 of Flowserve Corporation are unaudited. In management’s opinion, all adjustments comprising normal recurring adjustments necessary for fair statement of such condensed consolidated financial statements have been made. Where applicable, prior period information has been updated to conform to current year presentation. The accompanying condensed consolidated financial statements and notes in this Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2021 ("Quarterly Report") are presented as permitted by Regulation S-X and do not contain certain information included in our annual financial statements and notes thereto. Accordingly, the accompanying condensed consolidated financial information should be read in conjunction with the audited consolidated financial statements presented in our Annual Report on Form 10-K for the year ended December 31, 2020 ("2020 Annual Report"). Revision to Previously Reported Financial Information - During the first quarter of 2021, as previously disclosed, we identified an accounting error involving foreign currency transactions beginning with the first quarter of 2020 through the year ended December 31, 2020. These adjustments increased retirement obligations and other liabilities by $1.5 million, retained earnings by $14.0 million and accumulated other comprehensive loss by $15.5 million as of December 31, 2020. In addition, as previously disclosed, during 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 the above described errors, individually and in the aggregate, and concluded they were not material to the period ended June 30, 2020 or any previous period. The June 30, 2020, balances, as presented herein, have been revised. Additionally, the remaining periods in 2020 will be revised the next time such financial statements are filed as applicable. Refer to Note 2 for a detailed discussion related to the impact of the revision as of and for the three and six months ended June 30, 2020 and the impact to future periods in 2020 which will be revised in future filings. Coronavirus Pandemic ("COVID-19") and Oil and Gas Market - During the first six months of 2021, we continue to be challenged by macroeconomics and global economic impacts based on the disruption and uncertainties caused by COVID-19. As a result of the COVID-19 pandemic’s effect on oil prices, many of our large customers reduced capital expenditures and budgets in 2020. To date, customer spending has yet to return to pre-pandemic levels. The preparation of our condensed consolidated financial statements requires us to make estimates, judgments and assumptions that may affect the reported amounts of assets, liabilities, equity, revenues and expenses and related disclosure of contingent assets and liabilities. We evaluate our estimates, judgments and methodologies on an ongoing basis. We base our estimates on historical experience and on various other assumptions that we believe are reasonable, the results of which form the basis for making judgments about the carrying values of assets, liabilities and equity and the amount of revenues and expenses. 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. Actual results may differ from these estimates. Accounting Developments Pronouncements Implemented In January 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-01, "Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topics 321, 323 and 815." The amendments of the ASU addresses accounting for the transition into and out of the equity method and measurement of certain purchased options and forward contracts to acquire investments. The ASU is effective for annual periods beginning after December 15, 2020 and the amendments should be applied retrospectively to all periods presented. The adoption of this ASU did not have an impact on our consolidated financial condition, results of operations or net cash flows. 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 may be applied to contract modifications and hedging relationships from the beginning of an interim period that includes or is subsequent to March 12, 2020. At this time, we do not have hedging relationships that reference LIBOR or another reference rate expected to be discontinued and therefore, have not applied the practical expedients and exceptions as required by the ASU. As referenced in Note 7 of this Quarterly Report, the Company’s Senior Credit Facility agreement includes a transition clause in the event LIBOR is discontinued, as such, we do not expect the transition of LIBOR to have a material impact on our consolidated financial statements. We do not expect the application of these expedients and exceptions to have an 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. The adoption of this ASU did not have an impact on our consolidated financial condition, results of operations or net cash flows. |
Revision to Previously Reported
Revision to Previously Reported Financial Information | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Revision to Previously Reported Financial Information | Revision to Previously Reported Financial Information During the first quarter of 2021, we identified an accounting error involving foreign currency transactions beginning with the first quarter of 2020 though the year ended December 31, 2020. These adjustments increased retirement obligations and other liabilities by $1.5 million, retained earnings by $14.0 million and accumulated other comprehensive loss by $15.5 million as of December 31, 2020. In 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 IBNR 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. The following tables present the impact to the affected line items on our condensed consolidated financial statements for the periods indicated for the correction of the accounting error involving foreign currency transactions identified in the first quarter of 2021, the accounting errors related to the recognition of a liability for unasserted asbestos claims identified in the third quarter of 2020, and other immaterial misstatements previously identified: June 30, 2020 (Amounts in thousands) As Reported Adjustments As Revised Contract assets, net of allowance for expected credit losses $ 309,149 $ 47 $ 309,196 Total current assets 2,430,555 47 2,430,602 Property, plant and equipment, net of accumulated depreciation(1) 541,768 5,703 547,471 Other assets, net of allowance for expected credit losses(2) 218,604 16,926 235,530 Total assets 4,755,702 22,676 4,778,378 Accrued liabilities(3) 401,041 (4,029) 397,012 Contract liabilities(4) 214,135 5,498 219,633 Debt due within one year 9,058 156 9,214 Total current liabilities 1,088,738 1,625 1,090,363 Long-term debt due after one year(1) 1,367,478 5,646 1,373,124 Retirement obligations and other liabilities(5) $ 470,400 $ 59,546 $ 529,946 Retained earnings(6) 3,643,868 (33,398) 3,610,470 Accumulated other comprehensive loss (643,173) (10,743) (653,916) Total Flowserve Corporation shareholders’ equity 1,662,572 (44,141) 1,618,431 Total equity 1,690,351 (44,141) 1,646,210 Total liabilities and equity $ 4,755,702 $ 22,676 $ 4,778,378 ______________________________________ (1) Adjustment relates to right-of-use (“ROU”) asset and lease liability for an operating lease. (2) Adjustment relates to the associated receivables for expected insurance proceeds for asbestos settlements and defense costs. (3 ) Adjustment primarily relates to non-restructuring realignment charges associated with workforce reductions in our Realignment Programs ("2020 Realignment Program"). Refer to Note 17 for further discussion of this program. (4) Adjustment relates to one of our sites for correction in contract position caused by errors in estimated costs under the over time revenue recognition model. (5) Adjustment primarily relates to IBNR reserves associated with unasserted asbestos claims. (6) The adjustments to retained earnings are the cumulative effect of the immaterial errors that were corrected in prior periods. Three Months Ended June 30, 2020 (Amounts in thousands, except per share data) As Reported Adjustments As Revised Sales $ 924,965 $ 47 $ 925,012 Cost of sales(1) (657,805) 2,500 (655,305) Gross profit 267,160 2,547 269,707 Selling, general and administrative expense(2) (227,358) (1,985) (229,343) Operating income 42,888 564 43,452 Other income (expense), net(3) (14,941) (3,966) (18,907) Earnings before income taxes 16,196 (3,437) 12,759 Provision for income taxes (5,409) 924 (4,485) Net earnings, including noncontrolling interests 10,787 (2,513) 8,274 Net earnings (loss) attributable to Flowserve Corporation $ 8,645 $ (2,513) $ 6,132 Net earnings (loss) per share attributable to Flowserve Corporation common shareholders: Basic $ 0.07 $ (0.02) $ 0.05 Diluted 0.07 (0.02) 0.05 ______________________________________ (1) Adjustment primarily relates to non-restructuring realignment charges associated with workforce reductions in our 2020 Realignment Program. (2) Adjustment primarily relates to asbestos settlement and defense costs for related legal fees. (3) Adjustment relates to the accounting error involving foreign currency transactions. Three Months Ended June 30, 2020 (Amounts in thousands) As Reported Adjustments As Revised Net earnings, including noncontrolling interests(1) $ 10,787 $ (2,513) $ 8,274 Other comprehensive income (loss): Foreign currency translation adjustments, net of taxes(2) 15,084 3,964 19,048 Other comprehensive income (loss) 16,886 3,964 20,850 Comprehensive income (loss), including noncontrolling interests 27,673 1,451 29,124 Comprehensive income (loss) attributable to Flowserve Corporation $ 25,594 $ 1,451 $ 27,045 _______________________________________ (1) Adjustment relates to cumulative effect of the accounting errors that were corrected in the periods, as outlined above. (2) Adjustment relates to the accounting error involving foreign currency transactions. Six Months Ended June 30, 2020 (Amounts in thousands, except per share data) As Reported Adjustments As Revised Sales $ 1,819,422 $ (896) $ 1,818,526 Cost of sales(1) (1,286,285) 3,925 (1,282,360) Gross profit 533,137 3,029 536,166 Selling, general and administrative expense(2) (470,980) (3,814) (474,794) Operating income 68,440 (785) 67,655 Interest expense (25,863) (35) (25,898) Other income (expense), net(3) 8,521 10,774 19,295 Earnings before income taxes 53,996 9,954 63,950 Provision for income taxes (41,719) 266 (41,453) Net earnings, including noncontrolling interests 12,277 10,220 22,497 Net earnings (loss) attributable to Flowserve Corporation $ 8,035 $ 10,219 $ 18,254 Net earnings (loss) per share attributable to Flowserve Corporation common shareholders: Basic $ 0.06 $ 0.08 $ 0.14 Diluted 0.06 0.08 0.14 _______________________________________ (1) Adjustment primarily relates to non-restructuring realignment charges associated with workforce reductions in our 2020 Realignment Program. (2) Adjustment primarily relates to asbestos settlement and defense costs for related legal fees. (3) Adjustment relates to the accounting error involving foreign currency transactions. Six Months Ended June 30, 2020 (Amounts in thousands) As Reported Adjustments As Revised Net earnings, including noncontrolling interests(1) $ 12,277 $ 10,220 $ 22,497 Other comprehensive income (loss): Foreign currency translation adjustments, net of taxes(2) (66,269) (10,744) (77,013) Other comprehensive income (loss) (58,104) (10,744) (68,848) Comprehensive income (loss), including noncontrolling interests (45,827) (524) (46,351) Comprehensive income (loss) attributable to Flowserve Corporation $ (50,845) $ (524) $ (51,369) _______________________________________ (1) Adjustment relates to cumulative effect of the accounting errors that were corrected in the periods, as outlined above. (2) Adjustment relates to the accounting error involving foreign currency transactions. The following tables present the impact to affected line items on our condensed consolidated financial statements for the periods indicated for the correction of the accounting error involving foreign currency transactions identified in the first quarter of 2021: September 30, 2020 (Amounts in thousands) As Reported Adjustments(1) As Revised Retirement obligations and other liabilities $ 541,721 $ 1,500 $ 543,221 Retained earnings 3,625,291 14,936 3,640,227 Accumulated other comprehensive loss (618,856) (16,436) (635,292) Total Flowserve Corporation shareholders’ equity 1,673,421 (1,500) 1,671,921 Total equity 1,703,843 (1,500) 1,702,343 _______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions. Three Months Ended September 30, 2020 (Amounts in thousands, except per share data) As Reported Adjustments(1) As Revised Other income (expense), net $ (963) $ 5,636 $ 4,673 Earnings before income taxes 72,322 5,636 77,958 Provision for income taxes (18,672) (524) (19,196) Net earnings, including noncontrolling interests 53,650 5,112 58,762 Net earnings attributable to Flowserve Corporation $ 51,003 $ 5,112 $ 56,115 Net earnings per share attributable to Flowserve Corporation common shareholders: Basic $ 0.39 $ 0.04 $ 0.43 Diluted 0.39 0.04 0.43 _______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions. Three Months Ended September 30, 2020 (Amounts in thousands) As Reported Adjustments(1) As Revised Net earnings, including noncontrolling interests $ 53,650 $ 5,112 $ 58,762 Other comprehensive income (loss): Foreign currency translation adjustments, net of taxes 25,204 (5,649) 19,555 Other comprehensive income (loss) 24,269 (5,649) 18,620 Comprehensive income (loss), including noncontrolling interests 77,919 (537) 77,382 Comprehensive income (loss) attributable to Flowserve Corporation $ 75,276 $ (537) $ 74,739 _______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions. (Amounts in thousands, except per share data) Nine Months Ended September 30, 2020 As Reported Adjustments(1) As Revised Other income (expense), net $ 7,558 $ 16,411 $ 23,969 Earnings before income taxes 125,498 16,411 141,909 Provision for income taxes (59,175) (1,475) (60,650) Net earnings, including noncontrolling interests 66,323 14,936 81,259 Net earnings attributable to Flowserve Corporation $ 59,433 $ 14,936 $ 74,369 Net earnings per share attributable to Flowserve Corporation common shareholders: Basic $ 0.46 $ 0.11 $ 0.57 Diluted 0.45 0.12 0.57 _______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions. Nine Months Ended September 30, 2020 (Amounts in thousands) As Reported Adjustments(1) As Revised Net earnings, including noncontrolling interests $ 66,323 $ 14,936 $ 81,259 Other comprehensive income (loss): Foreign currency translation adjustments, net of taxes (41,022) (16,434) (57,456) Other comprehensive income (loss) (33,792) (16,434) (50,226) Comprehensive income (loss), including noncontrolling interests 32,531 (1,498) 31,033 Comprehensive income (loss) attributable to Flowserve Corporation $ 24,869 $ (1,498) $ 23,371 _______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions. December 31, 2020 (Amounts in thousands) As Reported Adjustments(1) As Revised Retirement obligations and other liabilities $ 516,087 $ 1,479 $ 517,566 Retained earnings 3,656,449 14,094 3,670,543 Accumulated other comprehensive loss (594,052) (15,573) (609,625) Total Flowserve Corporation shareholders’ equity 1,732,470 (1,479) 1,730,991 Total equity 1,762,800 (1,479) 1,761,321 _______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions. (Amounts in thousands, except per share data) Three Months Ended December 31, 2020 As Reported Adjustments(1) As Revised Other income (expense), net $ (17,811) $ (931) $ (18,742) Earnings before income taxes 61,314 (931) 60,383 Provision for income taxes (856) 89 (767) Net earnings, including noncontrolling interests 60,458 (842) 59,616 Net earnings attributable to Flowserve Corporation $ 56,893 $ (842) $ 56,051 Net earnings per share attributable to Flowserve Corporation common shareholders: Basic $ 0.44 $ (0.01) $ 0.43 Diluted 0.43 — 0.43 ______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions. Three Months Ended December 31, 2020 (Amounts in thousands) As Reported Adjustments(1) As Revised Net earnings, including noncontrolling interests $ 60,458 $ (842) $ 59,616 Other comprehensive income (loss): Foreign currency translation adjustments, net of taxes 41,411 862 42,273 Other comprehensive income (loss) 24,803 862 25,665 Comprehensive income (loss), including noncontrolling interests 85,261 20 85,281 Comprehensive income (loss) attributable to Flowserve Corporation $ 81,698 $ 20 $ 81,718 ______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions. (Amounts in thousands, except per share data) Year Ended December 31, 2020 As Reported Adjustments(1) As Revised Other income (expense), net $ (10,254) $ 15,480 $ 5,226 Earnings before income taxes 186,812 15,480 202,292 Provision for income taxes (60,031) (1,386) (61,417) Net earnings, including noncontrolling interests 126,781 14,094 140,875 Net earnings attributable to Flowserve Corporation $ 116,326 $ 14,094 $ 130,420 Net earnings per share attributable to Flowserve Corporation common shareholders: Basic $ 0.89 $ 0.11 $ 1.00 Diluted 0.89 0.11 1.00 ______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions. Year Ended December 31, 2020 (Amounts in thousands) As Reported Adjustments(1) As Revised Net earnings, including noncontrolling interests $ 126,781 $ 14,094 $ 140,875 Other comprehensive income (loss): Foreign currency translation adjustments, net of taxes 388 (15,571) (15,183) Other comprehensive income (loss) (8,991) (15,571) (24,562) Comprehensive income (loss), including noncontrolling interests 117,790 (1,477) 116,313 Comprehensive income (loss) attributable to Flowserve Corporation $ 106,565 $ (1,477) $ 105,088 ______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions. The condensed consolidated statements of shareholders' equity for the three and six months ended June 30, 2020 have been revised to reflect the impacts of the above described errors. Additionally, the condensed consolidated statements of shareholders' equity for the periods from July 1, 2020 to September 30, 2020, January 1, 2020 to September 30, 2020 and for the year ended December 31, 2020, which will be revised the next time such financial statements are filed, have been corrected to reflect the impact of the errors described above and there are no other adjustments impacting those statements. The following tables present the impact to affected sub-totals for the correction of the errors on our condensed consolidated statement of cash flows for the six month and nine month periods ended June 30, 2020 and September 30, 2020, respectively. There was no impact on the condensed consolidated statement of cash flows for the year ended December 31, 2020. Six Months Ended June 30, 2020 (Amounts in thousands) As Reported Adjustments As Revised Net cash flows provided (used) by operating activities (1) $ 21,231 $ (1,048) $ 20,183 Net cash flows provided (used) by investing activities (2) (21,161) 2,899 (18,262) Net cash flows provided (used) by financing activities(3) (91,881) (1,851) (93,732) Cash and cash equivalents at end of period 561,705 — 561,705 ______________________________________ (1) Adjustment relates to cumulative effect of the accounting errors that were corrected in the periods, as outlined above. (2) 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. (3) Primarily resulting from the misclassification of non-cash items under proceeds and payments under other financing arrangements in financing activities, rather than other assets, net, in operating activities. Nine Months Ended September 30, 2020 (Amounts in thousands) As Reported Adjustments As Revised Net cash flows provided (used) by operating activities (1) $ 115,629 $ (1,380) $ 114,249 Net cash flows provided (used) by investing activities (1) (34,160) 1,495 (32,665) Net cash flows provided (used) by financing activities 178,972 (115) 178,857 Cash and cash equivalents at end of period 921,178 — 921,178 _______________________________________ (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. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [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 15% and 22% of total revenue for the three month period ended June 30, 2021 and 2020, respectively, and 16% and 22% for the six month period ended June 30, 2021 and 2020, 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 85% and 78% of total revenue for the three month period ended June 30, 2021 and 2020, respectively, and 84% and 78% for the six month period ended June 30, 2021 and 2020, respectively. Refer to Note 3 to our consolidated financial statements included in our 2020 Annual Report for a more comprehensive discussion of our policies and accounting practices of revenue recognition. 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") designs and manufactures 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") designs, manufactures and distributes a broad portfolio of engineered-to-order and configured-to-order isolation valves, control valves, valve automation products and related equipment. 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 tables present our customer revenues disaggregated by revenue source: Three Months Ended June 30, 2021 (Amounts in thousands) FPD FCD Total Original Equipment $ 220,387 $ 214,097 $ 434,484 Aftermarket 397,047 66,647 463,694 $ 617,434 $ 280,744 $ 898,178 Three Months Ended June 30, 2020 FPD FCD Total Original Equipment $ 271,465 $ 191,358 $ 462,823 Aftermarket 402,089 60,100 462,189 $ 673,554 $ 251,458 $ 925,012 Six Months Ended June 30, 2021 (Amounts in thousands) FPD FCD Total Original Equipment $ 434,541 $ 406,817 $ 841,358 Aftermarket 785,059 129,069 914,128 $ 1,219,600 $ 535,886 $ 1,755,486 Six Months Ended June 30, 2020 FPD FCD Total Original Equipment $ 524,198 $ 389,977 $ 914,175 Aftermarket 784,482 119,869 904,351 $ 1,308,680 $ 509,846 $ 1,818,526 Our customer sales are diversified geographically. The following tables present our revenues disaggregated by geography, based on the shipping addresses of our customers: Three Months Ended June 30, 2021 (Amounts in thousands) FPD FCD Total North America(1) $ 243,611 $ 98,118 $ 341,729 Latin America(2) 52,219 8,879 61,098 Middle East and Africa 69,662 26,530 96,192 Asia Pacific 119,375 88,944 208,319 Europe 132,567 58,273 190,840 $ 617,434 $ 280,744 $ 898,178 Three Months Ended June 30, 2020 FPD FCD Total North America(1) $ 269,610 $ 106,737 $ 376,347 Latin America(2) 46,909 6,905 53,814 Middle East and Africa 96,740 21,687 118,427 Asia Pacific 128,102 64,546 192,648 Europe 132,193 51,583 183,776 $ 673,554 $ 251,458 $ 925,012 Six Months Ended June 30, 2021 (Amounts in thousands) FPD FCD Total North America(1) $ 467,582 $ 188,368 $ 655,950 Latin America(2) 94,256 15,694 109,950 Middle East and Africa 152,207 54,226 206,433 Asia Pacific 244,027 167,600 411,627 Europe 261,528 109,998 371,526 $ 1,219,600 $ 535,886 $ 1,755,486 Six Months Ended June 30, 2020 FPD FCD Total North America(1) $ 537,135 $ 229,862 $ 766,997 Latin America(2) 89,096 12,415 101,511 Middle East and Africa 193,908 48,352 242,260 Asia Pacific 240,557 119,103 359,660 Europe 247,984 100,114 348,098 $ 1,308,680 $ 509,846 $ 1,818,526 __________________________________ (1) North America represents the United States and Canada. (2) Latin America includes Mexico. On June 30, 2021 , the aggregate transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations was approximately $470 million. We estimate recognition of approximately $294 million of this amount as revenue in the remainder of 2021 and an additional $176 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 receive payment under the terms of a contract. A contract liability represents our right to receive payment in advance of revenue recognized for a contract. The following tables present beginning and ending balances of contract assets and contract liabilities, current and long-term, for the six months ended June 30, 2021 and 2020: (Amounts in thousands) Contract Assets, net (Current) Long-term Contract Assets, net(1) Contract Liabilities (Current) Long-term Contract Liabilities(2) Beginning balance, January 1, 2021 $ 277,734 $ 1,139 $ 194,227 $ 822 Revenue recognized that was included in contract liabilities at the beginning of the period — — (112,835) — Revenue recognized in the period in excess of billings 321,040 54 — — Billings arising during the period in excess of revenue recognized — — 126,591 — Amounts transferred from contract assets to receivables (326,634) (28) — — Currency effects and other, net (9,909) (86) 1,109 (19) Ending balance, June 30, 2021 $ 262,231 $ 1,079 $ 209,092 $ 803 (Amounts in thousands) Contract Assets, net (Current) Long-term Contract Assets, net(1) Contract Liabilities (Current) Long-term Contract Liabilities(2) Beginning balance, January 1, 2020 $ 272,914 $ 9,280 $ 221,095 $ 1,652 Revenue recognized that was included in contract liabilities at the beginning of the period — — (138,994) (646) Revenue recognized in the period in excess of billings 386,250 511 — — Billings arising during the period in excess of revenue recognized — — 141,156 — Amounts transferred from contract assets to receivables (335,505) (93) — — Currency effects and other, net (14,463) (6,689) (3,624) (31) Ending balance, June 30, 2020 $ 309,196 $ 3,009 $ 219,633 $ 975 _____________________________________ (1) Included in other assets, net. |
Allowance for Expected Credit L
Allowance for Expected Credit Losses | 6 Months Ended |
Jun. 30, 2021 | |
Credit Loss [Abstract] | |
Allowance for Expected Credit Losses | Allowance for Expected Credit Losses The allowance for credit losses is an estimate of the credit losses expected over the life of our financial assets and instruments. We assess and measure expected credit losses on a collective basis when similar risk characteristics exist, including market, geography, credit risk and remaining duration. Financial assets and instruments that do not share risk characteristics are evaluated on an individual basis. Our estimate of the allowance balance is assessed and quantified using internal and external valuation information relating to past events, current conditions and reasonable and supportable forecasts over the contractual terms of an asset. Our primary exposure to expected credit losses is through our 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. Primarily, our experience of historical credit losses provides the basis for our estimation of the allowance. We estimate the allowance based on an aging schedule and according to historical losses as determined from our history of billings and collections. 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 geopolitical risks. We also consider both the current and forecasted macroeconomic conditions as of the reporting date. As identified and needed, 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 previously written off amounts are reflected as a reduction to credit impairment losses in the condensed consolidated statements of income. Contract assets represent a conditional right to consideration for satisfied performance obligations that become a receivable when the conditions are satisfied. Generally, contract assets are recorded when contractual billing schedules differ from revenue recognition based on timing and are managed through the revenue recognition process. Based on our historical credit loss experience, the current expected credit loss for contract assets is estimated to be approximately 1% of the asset balance. The following table presents the changes in the allowance for expected credit losses for our trade receivables and contract assets for the six months ended June 30, 2021 and 2020: (Amounts in thousands) Trade receivables Contract assets Beginning balance, January 1, 2021 $ 75,176 $ 3,205 Charges to cost and expenses, net of recoveries 865 — Write-offs (2,015) — Currency effects and other, net 756 (167) Ending balance, June 30, 2021 $ 74,782 $ 3,038 Beginning balance, January 1, 2020 $ 53,412 $ 206 Adoption of ASU 2016-13 6,970 2,779 Charges to cost and expenses, net of recoveries 11,800 — Currency effects and other, net (98) 25 Ending balance, June 30, 2020 $ 72,084 $ 3,010 Our allowance on long-term receivables, included in other assets, net, represent receivables with collection periods longer than 12 months and the balance primarily consists of reserved receivables associated with the national oil company in Venezuela. The following table presents the changes in the allowance for long-term receivables for the six months ended June 30, 2021 and 2020: (Amounts in thousands) 2021 2020 Balance at January 1 $ 67,842 $ 68,555 Adoption of ASU 2016-13 — (679) Currency effects and other, net (72) (617) Balance at June 30 $ 67,770 $ 67,259 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | Stock-Based Compensation Plans We maintain the Flowserve Corporation 2020 Long-Term Incentive Plan (“2020 Plan”), which is a shareholder approved plan authorizing 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. Of the shares of common stock authorized under the 2020 Plan, 11,273,436 were available for issuance as of June 30, 2021. 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 continue to vest over the original vesting period ("55/10 Provision"). As of June 30, 2021, 114,943 stock options were outstanding. No stock options were granted or vested during the six months ended June 30, 2021 and 2020. Restricted Shares – 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 in the period granted. We had unearned compensation of $38.1 million and $18.7 million at June 30, 2021 and December 31, 2020, respectively, which is expected to be recognized over a remaining weighted-average period of approximat ely two years. These amounts will be recognized into net earnings in prospective periods as the awar ds vest. The total fair value of Restricted Shares vested during the three months ended June 30, 2021 and 2020 was $0.9 million and $2.9 million , respectively. The total fair value of Restricted Shares vested during the six months ended June 30, 2021 and 2020 was $24.4 million and $21.0 million , respectively. We recorded stock-based compensation expense of $5.1 million ($6.7 million pre-tax) and $3.3 million ($4.2 million pre-tax) for the three months ended June 30, 2021 and 2020, respectively. We recorded stock-based compensation expense of $12.7 million ($16.5 million pre-tax) and $14.4 million ( $18.5 million pre-tax) for the six months ended June 30, 2021 and 2020, respectively. The following table summarizes information regarding Restricted Shares: Six Months Ended June 30, 2021 Shares Weighted Average Number of unvested shares: Outstanding - January 1, 2021 1,373,657 $ 46.76 Granted 995,204 39.59 Vested (550,370) 44.27 Forfeited (117,090) 48.01 Outstanding as of June 30, 2021 1,701,401 $ 43.29 Unvested Restricted Shares outstanding as of June 30, 2021 included approximately 509,000 units with performance-based vesting provisions issuable in common stock and vest upon the achievement of pre-defined performance metrics. Targets for outstanding performance awards are based on our average return on invested capital, total shareholder return ("TSR") or free cash flow as a percent of net income over a three-year period. Performance units issued in 2021 include a secondary measure, relative total shareholder return, which can increase or decrease the number of vesting units by 15% depending on the Company's performance versus peers. Performance units issued in 2019 and 2020 have a vesting percentage between 0% and 200%, while the 2021 performance units have a vesting percentage up to 230%. 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, adjusted for actual forfeitures. During the performance period, earned and unearned compensation expense is adjusted based on changes in the expected achievement of the performance targets for all performance-based units granted except for the TSR-based units. Vesting provisions range from 0 to approximately 1,063,000 shares based on performance targets. As of June 30, 2021, we estimate vesting of approximately 480,000 shares based on expected achievement of performance targets. |
Derivative Instruments and Hedg
Derivative Instruments and Hedges | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedges | Derivative Instruments and Hedges Our risk management and foreign currency derivatives and hedging policy specifies the conditions under which we may enter into derivative contracts. See Notes 1 and 9 to our consolidated financial statements included in our 2020 Annual Report and Note 8 o f this Quarterly Report for additional information on our derivatives. 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. Forei gn exchange contracts with third parties had a notional value of $385.7 million and $388.1 million at June 30, 2021 and December 31, 2020, respectively. At June 30, 2021, the length of foreign exchange contracts currently in place ranged from 26 days to 27 months. We are exposed to risk from credit-related losses resulting from non performance by counterparties to our financial instruments. We perform credit evaluations of our counterparties under foreign exchange contracts agreements 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: June 30, December 31, (Amounts in thousands) 2021 2020 Current derivative assets $ 1,389 $ 2,857 Noncurrent derivative assets 20 249 Current derivative liabilities 914 682 Noncurrent derivative liabilities 62 — Current and noncurrent derivative assets are reported in our condensed consolidated balance sheets in prepaid expenses and other and other assets, net, respectively. Current and noncurrent derivative liabilities are reported in our condensed 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: Three Months Ended June 30, Six Months Ended June 30, (Amounts in thousands) 2021 2020 2021 2020 (Losses) gains recognized in income $ (4,312) $ (3,520) $ 1,793 $ (61) Gains and losses recognized in our condensed consolidated statements of income for foreign exchange contracts are classified as other income (expense), net. As a means of managing the volatility of foreign currency exposure with the Euro/U.S. dollar exchange rate, we enter into cross-currency swaps agreements ("Swaps") as a hedge of our Euro investment in certain of our international subsidiaries. Accordingly, on April 14, 2021 and March 9, 2021, we entered into cross currency swap agreements, with termination dates of October 1, 2030 and an early termination date of March 11, 2025, respectively . Also, d uring the third quarter of 2020 we entered into a cross currency swap agreement with an early termination date of September 22, 2025. The swap agreements are designated as net investment hedges and as of June 30, 2021 the combined notional value of these swaps wa s €423.2 million. The swaps are included in retirement obligations and othe r liabilities in our condensed consolidated balance sheet as of June 30, 2021 , with a fair value of $5.3 million, compared to $18.1 million as of December 31, 2020. The swaps are classified as Level II under the fair value hierarchy. We exclude the interest accruals on the swaps 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 swaps 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. For the three and six months ending June 30, 2021, an interest accrual of $(2.1) million and $(2.7) million, respectively, was recognized in other income (expense), net, in our condensed consolidated statements of income. The cumulative net investment hedge loss, net of deferred taxes, under cross-currency swaps recorded in accumulated other comprehensive loss ("AOCL") on our condensed consolidated balance sheet are summarized below: Three Months Ended June 30, Six Months Ended June 30, (Amounts in thousands) 2021 2020 2021 2020 Loss (gain)-included component (1) $ 1,798 $ — $ 185 $ — (Gain) loss-excluded component (2) (11,749) — 3,890 — (Gain) loss recognized in AOCL $ (9,951) $ — $ 4,075 $ — _____________________________________________ (1) Change in the fair value of the swaps attributable to changes in spot rates. (2) Change in the fair value of the swaps due to changes other than those attributable to spot rates. In March 2015, we designated €255.7 million of our 1.25% EUR 2022 Senior Notes ("2022 Euro Senior Notes") discussed in Note 7 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 reflected the remaining balance of the 2022 Euro Senior Notes. For each reporting period, the change in the carrying value due to the remeasurement of the effective portion is reported in AOCL on our condensed 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 condensed consolidated statements of income. As a result of the redemption of our 2022 Euro Senior Notes discussed in Note 7, i n February and March of 2021 we dedesignated the hedged value of our net investment hedge. Prior to the dedesignation, the cumulative impact recorded in AOCL on our condensed 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: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Amounts in thousands) Loss recognized in AOCL $ — $ 3,990 $ 29,554 $ 12,510 Prior to the dedesignation of the net investment hedge, we used the spot method to measure the effectiveness of both net investment hedges and evaluate the effectiveness on a prospective basis at the beginning of each quarter. We did not record any ineffectiveness |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt, including finance lease obligations, net of discounts and debt issuance costs, consisted of: June 30, December 31, (Amounts in thousands, except percentages) 2021 2020 1.25% EUR Senior Notes due March 17, 2022, net of unamortized discount and debt issuance costs of $1,070 as of December 31, 2020 $ — $ 410,243 3.50% USD Senior Notes due September 15, 2022, net of unamortized discount and debt issuance costs of $882 and $1,235 499,118 498,765 4.00% USD Senior Notes due November 15, 2023, net of unamortized discount and debt issuance costs of $1,122 and $1,345 298,878 298,655 3.50% USD Senior Notes due October 1, 2030, net of unamortized discount and debt issuance costs of $5,881 and $6,147 494,119 493,853 Finance lease obligations and other borrowings 24,633 25,390 Debt and finance lease obligations 1,316,748 1,726,906 Less amounts due within one year 9,599 8,995 Total debt due after one year $ 1,307,149 $ 1,717,911 Senior Notes On March 19, 2021, we redeemed the remaining $400.9 million of our 2022 Euro Senior Notes and have r ecorded a loss on early extinguishment of $7.6 million, which included the impact of a $6.6 million make-whole premium . During the third quarter of 2020 we tendered $191.4 million of our 2022 Euro Senior Notes and recorded a loss on early extinguishment of $1.2 million in interest expense. 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 Amended Credit Agreement provides for an $800.0 million unsecured senior credit facility with a maturity date of July 16, 2024. The 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 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. The 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 Credit Agreement) plus between 0.000% to 0.750% depending on our debt rating by either Moo dy’s Investors Service, Inc. or S&P Ratings. At June 30, 2021, 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 Credit Facility. The commitment fee will be betw een 0.090% and 0.300% of unused amounts under the Credit Facility depending on our debt rating by either Moody’s Investors Service, Inc. or S&P’s Ratings. The commitment f ee was 0.20% (per annum) during the three and six months ended June 30, 2021. As of June 30, 2021 and December 31, 2020, we had no revolving loans outstanding. We had outstanding letters of credit of $61.1 million and $58.1 million at June 30, 2021 and December 31, 2020, respectively. As of June 30, 2021, the amount available for borrowings under our Senior Credit Facility was $738.9 million, compared to $741.9 million at December 31, 2020. Our compliance with applicable financial covenants under the Senior Notes and Credit Facility are tested quarterly. We were in compliance with all applicable covenants as of June 30, 2021. |
Fair Value
Fair Value | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value 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 condensed consolidated balance sheets are categorized by hierarchical levels based upon the level of judgment associa ted with the inputs used to measure their fair values. Recurring fair value measurements are limited to investments in derivative instruments. 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 in Note 6. The carrying value of our financial instruments as reflected in our condensed consolidated balance sheets approximates fair value, with the exception of our long-term debt. The estimated fair value of our long-term debt, excluding the Senior Notes, approximat es the carrying value and is classified as Level II under the fair value hierarchy. The carrying value of our debt is included in Note 7. The estimated fair value of our Senior Notes at June 30, 2021 was $1,356.4 million compared to the carrying value of $1,292.1 million. The estimated fair value of the Senior Notes is based on Level I quoted market rates. The carrying amounts of our other financial instruments (e.g., cash and cash equivalents, accounts receivable, net, accounts payable and short-term debt) appr oximated fair value due to their short-term nature at June 30, 2021 and December 31, 2020. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories, net consisted of the following: June 30, December 31, (Amounts in thousands) 2021 2020 Raw materials $ 327,799 $ 321,600 Work in process 253,097 210,174 Finished goods 201,802 221,532 Less: Excess and obsolete reserve (92,553) (86,078) Inventories, net $ 690,145 $ 667,228 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2021 | |
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: Three Months Ended June 30, (Amounts in thousands, except per share data) 2021 2020 Net earnings of Flowserve Corporation $ 45,354 $ 6,132 Dividends on restricted shares not expected to vest — — Earnings attributable to common and participating shareholders $ 45,354 $ 6,132 Weighted average shares: Common stock 130,279 130,148 Participating securities 26 22 Denominator for basic earnings per common share 130,305 130,170 Effect of potentially dilutive securities 499 560 Denominator for diluted earnings per common share 130,804 130,730 Earnings per common share: Basic $ 0.35 $ 0.05 Diluted 0.35 0.05 Six Months Ended June 30, (Amounts in thousands, except per share data) 2021 2020 Net earnings of Flowserve Corporation $ 59,434 $ 18,254 Dividends on restricted shares not expected to vest — — Earnings attributable to common and participating shareholders $ 59,434 $ 18,254 Weighted average shares: Common stock 130,342 130,439 Participating securities 24 24 Denominator for basic earnings per common share 130,366 130,463 Effect of potentially dilutive securities 539 689 Denominator for diluted earnings per common share 130,905 131,152 Earnings per common share: Basic $ 0.46 $ 0.14 Diluted 0.45 0.14 |
Legal Matters and Contingencies
Legal Matters and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
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 follows: Three Months Ended Six Months Year Ended June 30, June 30, December 31, 2021 2020 2021 2020 2020 Beginning claims(1) 8,445 8,282 8,366 8,345 8,345 New claims 603 456 1,232 1,037 2,140 Resolved claims (479) (667) (1,023) (1,308) (2,203) Other(2) (10) 29 (16) 26 84 Ending claims(1) 8,559 8,100 8,559 8,100 8,366 ____________________ (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”. During the three months ended June 30, 2021 the Company incurred expenses (net of insurance) of approximately $1.8 million, compared to $5.9 million for the same period in 2020 to defend, resolve or otherwise dispose of outstanding claims, including legal and other related expenses. During the six months ended June 30, 2021 the Company incurred expenses (net of insurance) of approximately $4.5 million, compared to $10.2 million for the same period in 2020 to defend, resolve or otherwise dispose of outstanding claims, including legal and other related expenses. These expenses are included within SG&A in our condensed 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 $(3.3) million and $(6.7) million dur ing the six months ended June 30, 2021 and 2020 , 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, 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 resolved more favorably than reflected in the recorded receivables, would result in discrete gains in the applicable quarter. Other Claims 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 appropriate. |
Retirement and Postretirement B
Retirement and Postretirement Benefits | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Retirement and Postretirement Benefits | Retirement and Postretirement Benefits Components of the net periodic cost for retirement and postretirement benefits for the three months ended June 30, 2021 and 2020 were as follows: U.S. Non-U.S. Postretirement (Amounts in millions) 2021 2020 2021 2020 2021 2020 Service cost $ 5.8 $ 6.6 $ 1.9 $ 1.7 $ — $ — Interest cost 2.9 3.7 1.4 1.6 0.1 0.2 Expected return on plan assets (6.2) (6.1) (1.7) (1.2) — — Amortization of prior service cost 0.1 0.1 0.1 — 0.1 — Amortization of unrecognized net loss (gain) 2.0 1.8 1.2 1.1 — — Net periodic cost recognized $ 4.6 $ 6.1 $ 2.9 $ 3.2 $ 0.2 $ 0.2 Components of the net periodic cost for retirement and postretirement benefits for the six months ended June 30, 2021 and 2020 were as follows: U.S. Non-U.S. Postretirement (Amounts in millions) 2021 2020 2021 2020 2021 2020 Service cost $ 12.6 $ 12.9 $ 3.7 $ 3.4 $ — $ — Interest cost 6.0 7.5 2.8 3.2 0.2 0.3 Expected return on plan assets (12.7) (12.8) (3.2) (2.4) — — Amortization of prior service cost 0.1 0.1 0.2 0.1 0.1 0.1 Amortization of unrecognized net loss (gain) 3.9 3.5 2.3 2.1 — (0.1) Net periodic cost recognized $ 9.9 $ 11.2 $ 5.8 $ 6.4 $ 0.3 $ 0.3 The components of net periodic cost for retirement and postretirement benefits other than service costs are included in other income (expense), net in our condensed consolidated statements of income. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2021 | |
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: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Dividends declared per share $ 0.20 $ 0.20 $ 0.40 $ 0.40 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 311,000 shares of our outstanding common stock for $12.5 million during the three months ended June 30, 2021, compared to no repurchases for the same period in 2020. We repurchased 440,000 shares of our outstanding common stock for $17.5 million during the six months ended June 30, 2021, compared to 1,057,115 shares repurchases for $32.1 million for the same period in 2020. As of June 30, 2021, we had $101.2 million of remaining capacity under our current share repurchase program. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended June 30, 2021, we earned $50.5 million before taxes and provided for income taxes of $2.7 million resulting in an effective tax rate of 5.4%. For the six months ended June 30, 2021, we earned $71.4 million before taxes and provided for income taxes of $6.5 million resulting in an effective tax rate of 9.1%. The effective tax rate varied from the U.S. federal statutory rate for the three months ended June 30, 2021 primarily due to the net impact of foreign operations and favorable resolution of audits in foreign jurisdictions. The effective tax rate varied from the U.S. federal statutory rate for the six months ended June 30, 2021 primarily due to the net impact of foreign operations, the reversal of certain deferred tax liabilities as a result of restructuring specific aspects of our global financing arrangements, higher withholding taxes related to transactions with and amongst various foreign subsidiaries and favorable resolution of audits in foreign jurisdictions. For the three months ended June 30, 2020, we earned $12.8 million before taxes and provided for income taxes of $4.5 million resulting in an effective tax rate of 35.2%. For the six months ended June 30, 2020, we earned $64.0 million before taxes and provided for income taxes of $41.5 million resulting in an effective tax rate of 64.8%. The effective tax rate varied from the U.S. federal statutory rate for the three months ended June 30, 2020 primarily due to the net impact of foreign operations. The effective tax rate varied from the U.S. federal statutory rate for the six months ended June 30, 2020 primarily due to the establishment of a valuation allowance against certain deferred tax assets given the current and anticipated impact to the Company's operations resulting from the COVID-19 pandemic and the distressed oil prices, and the net impact of foreign operations. 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 three and six months ended June 30, 2021, there w ere 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. As of June 30, 2021, the amount of unrecognized tax benefits decreased by $3.6 million from December 31, 2020. 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 non-U.S. income tax audits for years through 2013. We are currently under examination for various years in Canada, Germany, India, Indonesia, Italy, Malaysia, Mexico, the 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 of approximately $13 million within the next 12 months. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The following is a summary of the financial information of the reportable segments reconciled to the amounts reported in the condensed consolidated financial statements: Three Months Ended June 30, 2021 (Amounts in thousands) FPD FCD Subtotal–Reportable Segments Eliminations and All Other Consolidated Total Sales to external customers $ 617,434 $ 280,744 $ 898,178 $ — $ 898,178 Intersegment sales 257 416 673 (673) — Segment operating income 67,845 37,229 105,074 (32,912) 72,162 Three Months Ended June 30, 2020 FPD FCD Subtotal–Reportable Segments Eliminations and All Other Consolidated Total Sales to external customers $ 673,554 $ 251,458 $ 925,012 $ — $ 925,012 Intersegment sales 510 828 1,338 (1,338) — Segment operating income 60,355 26,227 86,582 (43,130) 43,452 Six Months Ended June 30, 2021 (Amounts in thousands) FPD FCD Subtotal–Reportable Segments Eliminations and All Other Consolidated Total Sales to external customers $ 1,219,600 $ 535,886 $ 1,755,486 $ — $ 1,755,486 Intersegment sales 733 1,096 1,829 (1,829) — Segment operating income 121,627 61,942 183,569 (55,304) 128,265 Six Months Ended June 30, 2020 FPD FCD Subtotal–Reportable Segments Eliminations and All Other Consolidated Total Sales to external customers $ 1,308,680 $ 509,846 $ 1,818,526 $ — $ 1,818,526 Intersegment sales 1,037 1,825 2,862 (2,862) — Segment operating income 100,080 43,408 143,488 (75,833) 67,655 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following table presents the changes in accumulated other comprehensive loss ("AOCL"), net of tax for the three months ended June 30, 2021 and 2020: 2021 2020 (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 - April 1 $ (467,326) $ (142,464) $ (286) $ (610,076) $ (537,425) $ (130,852) $ (617) $ (668,894) Other comprehensive income (loss) before reclassifications 13,998 (713) 15 13,300 19,048 (793) 44 18,299 Amounts reclassified from AOCL — 2,772 — 2,772 — 2,551 — 2,551 Net current-period other comprehensive income (loss) 13,998 2,059 15 16,072 19,048 1,758 44 20,850 Balance - June 30 $ (453,328) $ (140,405) $ (271) $ (594,004) $ (518,377) $ (129,094) $ (573) $ (648,044) ________________________________ (1) Includes foreign currency translation adjustments attributable to noncontrolling interests of $6.1 million and $5.9 million at April 1, 2021 and 2020, respectively, and $6.1 million and $5.9 million at June 30, 2021 and 2020, respectively. Amounts in parentheses indicate an increase to AOCL. The following table presents the reclassifications out of AOCL: Three Months Ended June 30, (Amounts in thousands) Affected line item in the statement of income 2021(1) 2020(1) Pension and other postretirement effects Amortization of actuarial losses(2) Other income (expense), net $ (3,089) $ (2,857) Prior service costs(2) Other income (expense), net (155) (138) Tax benefit 472 444 Net of tax $ (2,772) $ (2,551) __________________________________ (1) Amounts in parentheses indicate decreases to income. None of the reclassified amounts have a noncontrolling interest component. (2) These AOCL components are included in the computation of net periodic pension cost. See Note 12 for additional details. The following table presents the changes in AOCL, net of tax for the six months ended June 30, 2021 and 2020: 2021 2020 (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 $ (456,437) $ (146,723) $ (488) $ (603,648) $ (441,364) $ (137,161) $ (671) $ (579,196) Other comprehensive (loss) income before reclassifications 3,109 804 217 4,130 (77,013) 3,116 98 (73,799) Amounts reclassified from AOCL — 5,514 — 5,514 — 4,951 — 4,951 Net current-period other comprehensive (loss) income 3,109 6,318 217 9,644 (77,013) 8,067 98 (68,848) Balance - June 30 $ (453,328) $ (140,405) $ (271) $ (594,004) $ (518,377) $ (129,094) $ (573) $ (648,044) (1) Includes foreign currency translation adjustments attributable to noncontrolling interests of $5.9 million and $5.1 million at January 1, 2021 and 2020, respectively, and $6.1 million and $5.9 million at June 30, 2021 and 2020, respectively. Amounts in parentheses indicate an increase to AOCL. The following table presents the reclassifications out of AOCL: Six Months Ended June 30, (Amounts in thousands) Affected line item in the statement of income 2021(1) 2020(1) Pension and other postretirement effects Amortization of actuarial losses(2) Other income (expense), net $ (6,148) $ (5,514) Prior service costs(2) Other income (expense), net (308) (279) Tax benefit 942 842 Net of tax $ (5,514) $ (4,951) __________________________________ (1) Amounts in parentheses indicate decreases to income. None of the reclassified amounts have a noncontrolling interest component. |
Realignment and Transformation
Realignment and Transformation Programs | 6 Months Ended |
Jun. 30, 2021 | |
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 condensed consolidated statements of income. We anticipate a total investment in these activities of approximately $95 million and the majority of the charges were incurred in 2020 with the remainder to be incurred through 2021. There are certain other realignment activities that are currently being evaluated, but have not yet been finalized. 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. The Flowserve 2.0 Transformation expenses incurred primarily consisted of professional services, project management and related travel costs recorded in SG&A expenses. As of December 31, 2020, the Flowserve 2.0 Transformation efforts were substantially completed. For the six months ended June 30, 2021, there were no Flowserve 2.0 Transformation charges. 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, incurred in 2021 related to our 2020 Realignment Program and the total charges incurred in 2020 are related to our 2020 Realignment Program and Flowserve 2.0 Transformation: Three Months Ended June 30, 2021 (Amounts in thousands) FPD FCD Subtotal–Reportable Segments All Other Consolidated Total Realignment Charges Restructuring Charges COS $ 2,016 $ 171 $ 2,187 $ — $ 2,187 SG&A 667 — 667 — 667 $ 2,683 $ 171 $ 2,854 $ — $ 2,854 Non-Restructuring Charges COS $ 1,558 $ 80 $ 1,638 $ — $ 1,638 SG&A 338 (129) 209 915 1,124 $ 1,896 $ (49) $ 1,847 $ 915 $ 2,762 Total Realignment Charges COS $ 3,574 $ 251 $ 3,825 $ — $ 3,825 SG&A 1,005 (129) 876 915 1,791 Total $ 4,579 $ 122 $ 4,701 $ 915 $ 5,616 Three Months Ended June 30, 2020 (Amounts in thousands) FPD FCD Subtotal–Reportable Segments All Other Consolidated Total Realignment Charges Restructuring Charges COS $ 11,650 $ (167) $ 11,483 $ — $ 11,483 SG&A 126 3 129 — 129 $ 11,776 $ (164) $ 11,612 $ — $ 11,612 Non-Restructuring Charges COS $ 12,003 $ 2,917 $ 14,920 $ 548 $ 15,468 SG&A 9,316 4,333 13,649 14,852 28,501 $ 21,319 $ 7,250 $ 28,569 $ 15,400 $ 43,969 Total Realignment Charges COS $ 23,653 $ 2,750 $ 26,403 $ 548 $ 26,951 SG&A 9,442 4,336 13,778 14,852 $ 28,630 Total $ 33,095 $ 7,086 $ 40,181 $ 15,400 $ 55,581 Transformation Charges SG&A $ — $ — $ — $ 5,618 $ 5,618 $ — $ — $ — $ 5,618 $ 5,618 Total Realignment and Transformation Charges COS $ 23,653 $ 2,750 $ 26,403 $ 548 $ 26,951 SG&A 9,442 $ 4,336 13,778 20,470 34,248 Total $ 33,095 $ 7,086 $ 40,181 $ 21,018 $ 61,199 Six Months Ended June 30, 2021 (Amounts in thousands) FPD FCD Subtotal–Reportable Segments All Other Consolidated Total Realignment Charges Restructuring Charges COS $ 6,043 $ 470 $ 6,513 $ — $ 6,513 SG&A 667 (9) 658 — 658 $ 6,710 $ 461 $ 7,171 $ — $ 7,171 Non-Restructuring Charges COS $ 5,449 $ 678 $ 6,127 $ 590 $ 6,717 SG&A 495 739 1,234 4,195 5,429 $ 5,944 $ 1,417 $ 7,361 $ 4,785 $ 12,146 Total Realignment Charges COS $ 11,492 $ 1,148 $ 12,640 $ 590 $ 13,230 SG&A 1,162 730 1,892 4,195 6,087 Total $ 12,654 $ 1,878 $ 14,532 $ 4,785 $ 19,317 Six Months Ended June 30, 2020 (Amounts in thousands) FPD FCD Subtotal–Reportable Segments All Other Consolidated Total Restructuring Charges COS $ 13,331 $ (272) $ 13,059 $ — $ 13,059 SG&A(1) 230 (3) 227 — 227 $ 13,561 $ (275) $ 13,286 $ — $ 13,286 Non-Restructuring Charges COS $ 12,128 $ 9,242 $ 21,370 $ 548 $ 21,918 SG&A 9,801 4,384 14,185 15,497 29,682 $ 21,929 $ 13,626 $ 35,555 $ 16,045 $ 51,600 Total Realignment Charges COS $ 25,459 $ 8,970 $ 34,429 $ 548 $ 34,977 SG&A 10,031 4,381 14,412 15,497 29,909 Total $ 35,490 $ 13,351 $ 48,841 $ 16,045 $ 64,886 Transformation Charges SG&A $ — $ — $ — $ 11,261 $ 11,261 $ — $ — $ — $ 11,261 $ 11,261 Total Realignment Charges COS $ 25,459 $ 8,970 $ 34,429 $ 548 $ 34,977 SG&A 10,031 4,381 14,412 26,758 41,170 Total $ 35,490 $ 13,351 $ 48,841 $ 27,306 $ 76,147 The following is a summary of total inception to date charges, net of adjustments, related to the 2020 Realignment Program: Inception to Date (Amounts in thousands) FPD FCD Subtotal–Reportable Segments All Other Consolidated Total Realignment Charges Restructuring Charges COS $ 23,872 $ 1,697 $ 25,569 $ — $ 25,569 SG&A 718 316 1,034 — 1,034 $ 24,590 $ 2,013 $ 26,603 $ — $ 26,603 Non-Restructuring Charges COS $ 24,653 $ 205 $ 24,858 $ 642 $ 25,500 SG&A 11,176 5,293 16,469 22,077 38,546 $ 35,829 $ 5,498 $ 41,327 $ 22,719 $ 64,046 Total Realignment Charges COS $ 48,525 $ 1,902 $ 50,427 $ 642 $ 51,069 SG&A 11,894 5,609 17,503 22,077 39,580 Total $ 60,419 $ 7,511 $ 67,930 $ 22,719 $ 90,649 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 related to our 2020 Realignment Program: Three Months Ended June 30, 2021 (Amounts in thousands) Severance Contract Termination Asset Write-Downs Other Total COS $ (154) $ — $ (849) $ 3,190 $ 2,187 SG&A 168 — — 499 667 Total $ 14 $ — $ (849) $ 3,689 $ 2,854 Three Months Ended June 30, 2020 (Amounts in thousands) Severance Contract Termination Asset Write-Downs Other Total COS $ 10,572 $ — $ 994 $ (83) $ 11,483 SG&A 126 — 3 — 129 Total $ 10,698 $ — $ 997 $ (83) $ 11,612 Six Months Ended June 30, 2021 (Amounts in thousands) Severance Contract Termination Asset Write-Downs Other Total COS $ 1,219 $ — $ 1,341 $ 3,953 $ 6,513 SG&A 168 — 490 658 Total $ 1,387 $ — $ 1,341 $ 4,443 $ 7,171 Six Months Ended June 30, 2020 (Amounts in thousands) Severance Contract Termination Asset Write-Downs Other Total COS $ 12,255 $ — $ 991 $ (187) $ 13,059 SG&A 265 — — (38) 227 Total $ 12,520 $ — $ 991 $ (225) $ 13,286 The following is a summary of total inception to date restructuring charges, net of adjustments, related to our 2020 Realignment Program: Inception to Date (Amounts in thousands) Severance Contract Termination Asset Write-Downs Other Total COS $ 16,463 $ 52 $ 2,753 $ 6,301 $ 25,569 SG&A 252 — 14 768 1,034 Total $ 16,715 $ 52 $ 2,767 $ 7,069 $ 26,603 The following represents the activity, primarily severance charges from reductions in force, related to the restructuring reserves for the six months ended June 30, 2021 and 2020: (Amounts in thousands) 2021 2020 Balance at January 1 $ 18,255 $ 6,703 Charges, net of adjustments 5,830 12,270 Cash expenditures (14,388) (2,713) Other non-cash adjustments, including currency (461) (118) Balance at June 30 $ 9,236 $ 16,142 |
Basis of Presentation and Acc_2
Basis of Presentation and Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated balance sheet as of June 30, 2021, the related condensed consolidated statements of income and comprehensive income (loss) for the three and six months ended June 30, 2021 and 2020, the condensed consolidated statements of shareholders' equity for the three and six months ended June 30, 2021 and 2020 and the condensed consolidated statements of cash flows for the six months ended June 30, 2021 and 2020 of Flowserve Corporation are unaudited. In management’s opinion, all adjustments comprising normal recurring adjustments necessary for fair statement of such condensed consolidated financial statements have been made. Where applicable, prior period information has been updated to conform to current year presentation. |
Accounting developments | Accounting Developments Pronouncements Implemented In January 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-01, "Investments—Equity Securities (Topic 321), Investments—Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topics 321, 323 and 815." The amendments of the ASU addresses accounting for the transition into and out of the equity method and measurement of certain purchased options and forward contracts to acquire investments. The ASU is effective for annual periods beginning after December 15, 2020 and the amendments should be applied retrospectively to all periods presented. The adoption of this ASU did not have an impact on our consolidated financial condition, results of operations or net cash flows. 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 may be applied to contract modifications and hedging relationships from the beginning of an interim period that includes or is subsequent to March 12, 2020. At this time, we do not have hedging relationships that reference LIBOR or another reference rate expected to be discontinued and therefore, have not applied the practical expedients and exceptions as required by the ASU. As referenced in Note 7 of this Quarterly Report, the Company’s Senior Credit Facility agreement includes a transition clause in the event LIBOR is discontinued, as such, we do not expect the transition of LIBOR to have a material impact on our consolidated financial statements. We do not expect the application of these expedients and exceptions to have an 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. The adoption of this ASU did not have an impact on our consolidated financial condition, results of operations or net cash flows. |
Fair Value | Fair Value 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 condensed consolidated balance sheets are categorized by hierarchical levels based upon the level of judgment associa |
Revision to Previously Report_2
Revision to Previously Reported Financial Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Adjustments | The following tables present the impact to the affected line items on our condensed consolidated financial statements for the periods indicated for the correction of the accounting error involving foreign currency transactions identified in the first quarter of 2021, the accounting errors related to the recognition of a liability for unasserted asbestos claims identified in the third quarter of 2020, and other immaterial misstatements previously identified: June 30, 2020 (Amounts in thousands) As Reported Adjustments As Revised Contract assets, net of allowance for expected credit losses $ 309,149 $ 47 $ 309,196 Total current assets 2,430,555 47 2,430,602 Property, plant and equipment, net of accumulated depreciation(1) 541,768 5,703 547,471 Other assets, net of allowance for expected credit losses(2) 218,604 16,926 235,530 Total assets 4,755,702 22,676 4,778,378 Accrued liabilities(3) 401,041 (4,029) 397,012 Contract liabilities(4) 214,135 5,498 219,633 Debt due within one year 9,058 156 9,214 Total current liabilities 1,088,738 1,625 1,090,363 Long-term debt due after one year(1) 1,367,478 5,646 1,373,124 Retirement obligations and other liabilities(5) $ 470,400 $ 59,546 $ 529,946 Retained earnings(6) 3,643,868 (33,398) 3,610,470 Accumulated other comprehensive loss (643,173) (10,743) (653,916) Total Flowserve Corporation shareholders’ equity 1,662,572 (44,141) 1,618,431 Total equity 1,690,351 (44,141) 1,646,210 Total liabilities and equity $ 4,755,702 $ 22,676 $ 4,778,378 ______________________________________ (1) Adjustment relates to right-of-use (“ROU”) asset and lease liability for an operating lease. (2) Adjustment relates to the associated receivables for expected insurance proceeds for asbestos settlements and defense costs. (3 ) Adjustment primarily relates to non-restructuring realignment charges associated with workforce reductions in our Realignment Programs ("2020 Realignment Program"). Refer to Note 17 for further discussion of this program. (4) Adjustment relates to one of our sites for correction in contract position caused by errors in estimated costs under the over time revenue recognition model. (5) Adjustment primarily relates to IBNR reserves associated with unasserted asbestos claims. (6) The adjustments to retained earnings are the cumulative effect of the immaterial errors that were corrected in prior periods. Three Months Ended June 30, 2020 (Amounts in thousands, except per share data) As Reported Adjustments As Revised Sales $ 924,965 $ 47 $ 925,012 Cost of sales(1) (657,805) 2,500 (655,305) Gross profit 267,160 2,547 269,707 Selling, general and administrative expense(2) (227,358) (1,985) (229,343) Operating income 42,888 564 43,452 Other income (expense), net(3) (14,941) (3,966) (18,907) Earnings before income taxes 16,196 (3,437) 12,759 Provision for income taxes (5,409) 924 (4,485) Net earnings, including noncontrolling interests 10,787 (2,513) 8,274 Net earnings (loss) attributable to Flowserve Corporation $ 8,645 $ (2,513) $ 6,132 Net earnings (loss) per share attributable to Flowserve Corporation common shareholders: Basic $ 0.07 $ (0.02) $ 0.05 Diluted 0.07 (0.02) 0.05 ______________________________________ (1) Adjustment primarily relates to non-restructuring realignment charges associated with workforce reductions in our 2020 Realignment Program. (2) Adjustment primarily relates to asbestos settlement and defense costs for related legal fees. (3) Adjustment relates to the accounting error involving foreign currency transactions. Three Months Ended June 30, 2020 (Amounts in thousands) As Reported Adjustments As Revised Net earnings, including noncontrolling interests(1) $ 10,787 $ (2,513) $ 8,274 Other comprehensive income (loss): Foreign currency translation adjustments, net of taxes(2) 15,084 3,964 19,048 Other comprehensive income (loss) 16,886 3,964 20,850 Comprehensive income (loss), including noncontrolling interests 27,673 1,451 29,124 Comprehensive income (loss) attributable to Flowserve Corporation $ 25,594 $ 1,451 $ 27,045 _______________________________________ (1) Adjustment relates to cumulative effect of the accounting errors that were corrected in the periods, as outlined above. (2) Adjustment relates to the accounting error involving foreign currency transactions. Six Months Ended June 30, 2020 (Amounts in thousands, except per share data) As Reported Adjustments As Revised Sales $ 1,819,422 $ (896) $ 1,818,526 Cost of sales(1) (1,286,285) 3,925 (1,282,360) Gross profit 533,137 3,029 536,166 Selling, general and administrative expense(2) (470,980) (3,814) (474,794) Operating income 68,440 (785) 67,655 Interest expense (25,863) (35) (25,898) Other income (expense), net(3) 8,521 10,774 19,295 Earnings before income taxes 53,996 9,954 63,950 Provision for income taxes (41,719) 266 (41,453) Net earnings, including noncontrolling interests 12,277 10,220 22,497 Net earnings (loss) attributable to Flowserve Corporation $ 8,035 $ 10,219 $ 18,254 Net earnings (loss) per share attributable to Flowserve Corporation common shareholders: Basic $ 0.06 $ 0.08 $ 0.14 Diluted 0.06 0.08 0.14 _______________________________________ (1) Adjustment primarily relates to non-restructuring realignment charges associated with workforce reductions in our 2020 Realignment Program. (2) Adjustment primarily relates to asbestos settlement and defense costs for related legal fees. (3) Adjustment relates to the accounting error involving foreign currency transactions. Six Months Ended June 30, 2020 (Amounts in thousands) As Reported Adjustments As Revised Net earnings, including noncontrolling interests(1) $ 12,277 $ 10,220 $ 22,497 Other comprehensive income (loss): Foreign currency translation adjustments, net of taxes(2) (66,269) (10,744) (77,013) Other comprehensive income (loss) (58,104) (10,744) (68,848) Comprehensive income (loss), including noncontrolling interests (45,827) (524) (46,351) Comprehensive income (loss) attributable to Flowserve Corporation $ (50,845) $ (524) $ (51,369) _______________________________________ (1) Adjustment relates to cumulative effect of the accounting errors that were corrected in the periods, as outlined above. (2) Adjustment relates to the accounting error involving foreign currency transactions. The following tables present the impact to affected line items on our condensed consolidated financial statements for the periods indicated for the correction of the accounting error involving foreign currency transactions identified in the first quarter of 2021: September 30, 2020 (Amounts in thousands) As Reported Adjustments(1) As Revised Retirement obligations and other liabilities $ 541,721 $ 1,500 $ 543,221 Retained earnings 3,625,291 14,936 3,640,227 Accumulated other comprehensive loss (618,856) (16,436) (635,292) Total Flowserve Corporation shareholders’ equity 1,673,421 (1,500) 1,671,921 Total equity 1,703,843 (1,500) 1,702,343 _______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions. Three Months Ended September 30, 2020 (Amounts in thousands, except per share data) As Reported Adjustments(1) As Revised Other income (expense), net $ (963) $ 5,636 $ 4,673 Earnings before income taxes 72,322 5,636 77,958 Provision for income taxes (18,672) (524) (19,196) Net earnings, including noncontrolling interests 53,650 5,112 58,762 Net earnings attributable to Flowserve Corporation $ 51,003 $ 5,112 $ 56,115 Net earnings per share attributable to Flowserve Corporation common shareholders: Basic $ 0.39 $ 0.04 $ 0.43 Diluted 0.39 0.04 0.43 _______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions. Three Months Ended September 30, 2020 (Amounts in thousands) As Reported Adjustments(1) As Revised Net earnings, including noncontrolling interests $ 53,650 $ 5,112 $ 58,762 Other comprehensive income (loss): Foreign currency translation adjustments, net of taxes 25,204 (5,649) 19,555 Other comprehensive income (loss) 24,269 (5,649) 18,620 Comprehensive income (loss), including noncontrolling interests 77,919 (537) 77,382 Comprehensive income (loss) attributable to Flowserve Corporation $ 75,276 $ (537) $ 74,739 _______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions. (Amounts in thousands, except per share data) Nine Months Ended September 30, 2020 As Reported Adjustments(1) As Revised Other income (expense), net $ 7,558 $ 16,411 $ 23,969 Earnings before income taxes 125,498 16,411 141,909 Provision for income taxes (59,175) (1,475) (60,650) Net earnings, including noncontrolling interests 66,323 14,936 81,259 Net earnings attributable to Flowserve Corporation $ 59,433 $ 14,936 $ 74,369 Net earnings per share attributable to Flowserve Corporation common shareholders: Basic $ 0.46 $ 0.11 $ 0.57 Diluted 0.45 0.12 0.57 _______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions. Nine Months Ended September 30, 2020 (Amounts in thousands) As Reported Adjustments(1) As Revised Net earnings, including noncontrolling interests $ 66,323 $ 14,936 $ 81,259 Other comprehensive income (loss): Foreign currency translation adjustments, net of taxes (41,022) (16,434) (57,456) Other comprehensive income (loss) (33,792) (16,434) (50,226) Comprehensive income (loss), including noncontrolling interests 32,531 (1,498) 31,033 Comprehensive income (loss) attributable to Flowserve Corporation $ 24,869 $ (1,498) $ 23,371 _______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions. December 31, 2020 (Amounts in thousands) As Reported Adjustments(1) As Revised Retirement obligations and other liabilities $ 516,087 $ 1,479 $ 517,566 Retained earnings 3,656,449 14,094 3,670,543 Accumulated other comprehensive loss (594,052) (15,573) (609,625) Total Flowserve Corporation shareholders’ equity 1,732,470 (1,479) 1,730,991 Total equity 1,762,800 (1,479) 1,761,321 _______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions. (Amounts in thousands, except per share data) Three Months Ended December 31, 2020 As Reported Adjustments(1) As Revised Other income (expense), net $ (17,811) $ (931) $ (18,742) Earnings before income taxes 61,314 (931) 60,383 Provision for income taxes (856) 89 (767) Net earnings, including noncontrolling interests 60,458 (842) 59,616 Net earnings attributable to Flowserve Corporation $ 56,893 $ (842) $ 56,051 Net earnings per share attributable to Flowserve Corporation common shareholders: Basic $ 0.44 $ (0.01) $ 0.43 Diluted 0.43 — 0.43 ______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions. Three Months Ended December 31, 2020 (Amounts in thousands) As Reported Adjustments(1) As Revised Net earnings, including noncontrolling interests $ 60,458 $ (842) $ 59,616 Other comprehensive income (loss): Foreign currency translation adjustments, net of taxes 41,411 862 42,273 Other comprehensive income (loss) 24,803 862 25,665 Comprehensive income (loss), including noncontrolling interests 85,261 20 85,281 Comprehensive income (loss) attributable to Flowserve Corporation $ 81,698 $ 20 $ 81,718 ______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions. (Amounts in thousands, except per share data) Year Ended December 31, 2020 As Reported Adjustments(1) As Revised Other income (expense), net $ (10,254) $ 15,480 $ 5,226 Earnings before income taxes 186,812 15,480 202,292 Provision for income taxes (60,031) (1,386) (61,417) Net earnings, including noncontrolling interests 126,781 14,094 140,875 Net earnings attributable to Flowserve Corporation $ 116,326 $ 14,094 $ 130,420 Net earnings per share attributable to Flowserve Corporation common shareholders: Basic $ 0.89 $ 0.11 $ 1.00 Diluted 0.89 0.11 1.00 ______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions. Year Ended December 31, 2020 (Amounts in thousands) As Reported Adjustments(1) As Revised Net earnings, including noncontrolling interests $ 126,781 $ 14,094 $ 140,875 Other comprehensive income (loss): Foreign currency translation adjustments, net of taxes 388 (15,571) (15,183) Other comprehensive income (loss) (8,991) (15,571) (24,562) Comprehensive income (loss), including noncontrolling interests 117,790 (1,477) 116,313 Comprehensive income (loss) attributable to Flowserve Corporation $ 106,565 $ (1,477) $ 105,088 ______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions. Six Months Ended June 30, 2020 (Amounts in thousands) As Reported Adjustments As Revised Net cash flows provided (used) by operating activities (1) $ 21,231 $ (1,048) $ 20,183 Net cash flows provided (used) by investing activities (2) (21,161) 2,899 (18,262) Net cash flows provided (used) by financing activities(3) (91,881) (1,851) (93,732) Cash and cash equivalents at end of period 561,705 — 561,705 ______________________________________ (1) Adjustment relates to cumulative effect of the accounting errors that were corrected in the periods, as outlined above. (2) 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. (3) Primarily resulting from the misclassification of non-cash items under proceeds and payments under other financing arrangements in financing activities, rather than other assets, net, in operating activities. Nine Months Ended September 30, 2020 (Amounts in thousands) As Reported Adjustments As Revised Net cash flows provided (used) by operating activities (1) $ 115,629 $ (1,380) $ 114,249 Net cash flows provided (used) by investing activities (1) (34,160) 1,495 (32,665) Net cash flows provided (used) by financing activities 178,972 (115) 178,857 Cash and cash equivalents at end of period 921,178 — 921,178 _______________________________________ (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. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present our customer revenues disaggregated by revenue source: Three Months Ended June 30, 2021 (Amounts in thousands) FPD FCD Total Original Equipment $ 220,387 $ 214,097 $ 434,484 Aftermarket 397,047 66,647 463,694 $ 617,434 $ 280,744 $ 898,178 Three Months Ended June 30, 2020 FPD FCD Total Original Equipment $ 271,465 $ 191,358 $ 462,823 Aftermarket 402,089 60,100 462,189 $ 673,554 $ 251,458 $ 925,012 Six Months Ended June 30, 2021 (Amounts in thousands) FPD FCD Total Original Equipment $ 434,541 $ 406,817 $ 841,358 Aftermarket 785,059 129,069 914,128 $ 1,219,600 $ 535,886 $ 1,755,486 Six Months Ended June 30, 2020 FPD FCD Total Original Equipment $ 524,198 $ 389,977 $ 914,175 Aftermarket 784,482 119,869 904,351 $ 1,308,680 $ 509,846 $ 1,818,526 Our customer sales are diversified geographically. The following tables present our revenues disaggregated by geography, based on the shipping addresses of our customers: Three Months Ended June 30, 2021 (Amounts in thousands) FPD FCD Total North America(1) $ 243,611 $ 98,118 $ 341,729 Latin America(2) 52,219 8,879 61,098 Middle East and Africa 69,662 26,530 96,192 Asia Pacific 119,375 88,944 208,319 Europe 132,567 58,273 190,840 $ 617,434 $ 280,744 $ 898,178 Three Months Ended June 30, 2020 FPD FCD Total North America(1) $ 269,610 $ 106,737 $ 376,347 Latin America(2) 46,909 6,905 53,814 Middle East and Africa 96,740 21,687 118,427 Asia Pacific 128,102 64,546 192,648 Europe 132,193 51,583 183,776 $ 673,554 $ 251,458 $ 925,012 Six Months Ended June 30, 2021 (Amounts in thousands) FPD FCD Total North America(1) $ 467,582 $ 188,368 $ 655,950 Latin America(2) 94,256 15,694 109,950 Middle East and Africa 152,207 54,226 206,433 Asia Pacific 244,027 167,600 411,627 Europe 261,528 109,998 371,526 $ 1,219,600 $ 535,886 $ 1,755,486 Six Months Ended June 30, 2020 FPD FCD Total North America(1) $ 537,135 $ 229,862 $ 766,997 Latin America(2) 89,096 12,415 101,511 Middle East and Africa 193,908 48,352 242,260 Asia Pacific 240,557 119,103 359,660 Europe 247,984 100,114 348,098 $ 1,308,680 $ 509,846 $ 1,818,526 __________________________________ (1) North America represents the United States and Canada. (2) Latin America includes Mexico. |
Contract liabilities | The following tables present beginning and ending balances of contract assets and contract liabilities, current and long-term, for the six months ended June 30, 2021 and 2020: (Amounts in thousands) Contract Assets, net (Current) Long-term Contract Assets, net(1) Contract Liabilities (Current) Long-term Contract Liabilities(2) Beginning balance, January 1, 2021 $ 277,734 $ 1,139 $ 194,227 $ 822 Revenue recognized that was included in contract liabilities at the beginning of the period — — (112,835) — Revenue recognized in the period in excess of billings 321,040 54 — — Billings arising during the period in excess of revenue recognized — — 126,591 — Amounts transferred from contract assets to receivables (326,634) (28) — — Currency effects and other, net (9,909) (86) 1,109 (19) Ending balance, June 30, 2021 $ 262,231 $ 1,079 $ 209,092 $ 803 (Amounts in thousands) Contract Assets, net (Current) Long-term Contract Assets, net(1) Contract Liabilities (Current) Long-term Contract Liabilities(2) Beginning balance, January 1, 2020 $ 272,914 $ 9,280 $ 221,095 $ 1,652 Revenue recognized that was included in contract liabilities at the beginning of the period — — (138,994) (646) Revenue recognized in the period in excess of billings 386,250 511 — — Billings arising during the period in excess of revenue recognized — — 141,156 — Amounts transferred from contract assets to receivables (335,505) (93) — — Currency effects and other, net (14,463) (6,689) (3,624) (31) Ending balance, June 30, 2020 $ 309,196 $ 3,009 $ 219,633 $ 975 _____________________________________ (1) Included in other assets, net. |
Allowance for Expected Credit_2
Allowance for Expected Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Credit Loss [Abstract] | |
Summary of Changes in Allowance for Expected Credit Losses for Trade Receivables | The following table presents the changes in the allowance for expected credit losses for our trade receivables and contract assets for the six months ended June 30, 2021 and 2020: (Amounts in thousands) Trade receivables Contract assets Beginning balance, January 1, 2021 $ 75,176 $ 3,205 Charges to cost and expenses, net of recoveries 865 — Write-offs (2,015) — Currency effects and other, net 756 (167) Ending balance, June 30, 2021 $ 74,782 $ 3,038 Beginning balance, January 1, 2020 $ 53,412 $ 206 Adoption of ASU 2016-13 6,970 2,779 Charges to cost and expenses, net of recoveries 11,800 — Currency effects and other, net (98) 25 Ending balance, June 30, 2020 $ 72,084 $ 3,010 |
Summary of Changes in Allowance for Expected Credit Losses for Contract Assets | The following table presents the changes in the allowance for expected credit losses for our trade receivables and contract assets for the six months ended June 30, 2021 and 2020: (Amounts in thousands) Trade receivables Contract assets Beginning balance, January 1, 2021 $ 75,176 $ 3,205 Charges to cost and expenses, net of recoveries 865 — Write-offs (2,015) — Currency effects and other, net 756 (167) Ending balance, June 30, 2021 $ 74,782 $ 3,038 Beginning balance, January 1, 2020 $ 53,412 $ 206 Adoption of ASU 2016-13 6,970 2,779 Charges to cost and expenses, net of recoveries 11,800 — Currency effects and other, net (98) 25 Ending balance, June 30, 2020 $ 72,084 $ 3,010 |
Summary of Changes in Allowance for Expected Credit Losses for Long-term Receivables | The following table presents the changes in the allowance for long-term receivables for the six months ended June 30, 2021 and 2020: (Amounts in thousands) 2021 2020 Balance at January 1 $ 67,842 $ 68,555 Adoption of ASU 2016-13 — (679) Currency effects and other, net (72) (617) Balance at June 30 $ 67,770 $ 67,259 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Information Regarding Restricted Shares | The following table summarizes information regarding Restricted Shares: Six Months Ended June 30, 2021 Shares Weighted Average Number of unvested shares: Outstanding - January 1, 2021 1,373,657 $ 46.76 Granted 995,204 39.59 Vested (550,370) 44.27 Forfeited (117,090) 48.01 Outstanding as of June 30, 2021 1,701,401 $ 43.29 |
Derivative Instruments and He_2
Derivative Instruments and Hedges (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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: June 30, December 31, (Amounts in thousands) 2021 2020 Current derivative assets $ 1,389 $ 2,857 Noncurrent derivative assets 20 249 Current derivative liabilities 914 682 Noncurrent derivative liabilities 62 — |
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: Three Months Ended June 30, Six Months Ended June 30, (Amounts in thousands) 2021 2020 2021 2020 (Losses) gains recognized in income $ (4,312) $ (3,520) $ 1,793 $ (61) The cumulative net investment hedge loss, net of deferred taxes, under cross-currency swaps recorded in accumulated other comprehensive loss ("AOCL") on our condensed consolidated balance sheet are summarized below: Three Months Ended June 30, Six Months Ended June 30, (Amounts in thousands) 2021 2020 2021 2020 Loss (gain)-included component (1) $ 1,798 $ — $ 185 $ — (Gain) loss-excluded component (2) (11,749) — 3,890 — (Gain) loss recognized in AOCL $ (9,951) $ — $ 4,075 $ — _____________________________________________ (1) Change in the fair value of the swaps attributable to changes in spot rates. |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | Prior to the dedesignation, the cumulative impact recorded in AOCL on our condensed 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: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (Amounts in thousands) Loss recognized in AOCL $ — $ 3,990 $ 29,554 $ 12,510 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt Including Capital Lease Obligations | Debt, including finance lease obligations, net of discounts and debt issuance costs, consisted of: June 30, December 31, (Amounts in thousands, except percentages) 2021 2020 1.25% EUR Senior Notes due March 17, 2022, net of unamortized discount and debt issuance costs of $1,070 as of December 31, 2020 $ — $ 410,243 3.50% USD Senior Notes due September 15, 2022, net of unamortized discount and debt issuance costs of $882 and $1,235 499,118 498,765 4.00% USD Senior Notes due November 15, 2023, net of unamortized discount and debt issuance costs of $1,122 and $1,345 298,878 298,655 3.50% USD Senior Notes due October 1, 2030, net of unamortized discount and debt issuance costs of $5,881 and $6,147 494,119 493,853 Finance lease obligations and other borrowings 24,633 25,390 Debt and finance lease obligations 1,316,748 1,726,906 Less amounts due within one year 9,599 8,995 Total debt due after one year $ 1,307,149 $ 1,717,911 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Net Components of Inventory | Inventories, net consisted of the following: June 30, December 31, (Amounts in thousands) 2021 2020 Raw materials $ 327,799 $ 321,600 Work in process 253,097 210,174 Finished goods 201,802 221,532 Less: Excess and obsolete reserve (92,553) (86,078) Inventories, net $ 690,145 $ 667,228 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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: Three Months Ended June 30, (Amounts in thousands, except per share data) 2021 2020 Net earnings of Flowserve Corporation $ 45,354 $ 6,132 Dividends on restricted shares not expected to vest — — Earnings attributable to common and participating shareholders $ 45,354 $ 6,132 Weighted average shares: Common stock 130,279 130,148 Participating securities 26 22 Denominator for basic earnings per common share 130,305 130,170 Effect of potentially dilutive securities 499 560 Denominator for diluted earnings per common share 130,804 130,730 Earnings per common share: Basic $ 0.35 $ 0.05 Diluted 0.35 0.05 Six Months Ended June 30, (Amounts in thousands, except per share data) 2021 2020 Net earnings of Flowserve Corporation $ 59,434 $ 18,254 Dividends on restricted shares not expected to vest — — Earnings attributable to common and participating shareholders $ 59,434 $ 18,254 Weighted average shares: Common stock 130,342 130,439 Participating securities 24 24 Denominator for basic earnings per common share 130,366 130,463 Effect of potentially dilutive securities 539 689 Denominator for diluted earnings per common share 130,905 131,152 Earnings per common share: Basic $ 0.46 $ 0.14 Diluted 0.45 0.14 |
Legal Matters and Contingenci_2
Legal Matters and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Loss Contingencies by Contingency | Activity related to asbestos claims during the periods indicated was as follows: Three Months Ended Six Months Year Ended June 30, June 30, December 31, 2021 2020 2021 2020 2020 Beginning claims(1) 8,445 8,282 8,366 8,345 8,345 New claims 603 456 1,232 1,037 2,140 Resolved claims (479) (667) (1,023) (1,308) (2,203) Other(2) (10) 29 (16) 26 84 Ending claims(1) 8,559 8,100 8,559 8,100 8,366 ____________________ (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. |
Retirement and Postretirement_2
Retirement and Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Cost for Pension and Postretirement Benefits | Components of the net periodic cost for retirement and postretirement benefits for the three months ended June 30, 2021 and 2020 were as follows: U.S. Non-U.S. Postretirement (Amounts in millions) 2021 2020 2021 2020 2021 2020 Service cost $ 5.8 $ 6.6 $ 1.9 $ 1.7 $ — $ — Interest cost 2.9 3.7 1.4 1.6 0.1 0.2 Expected return on plan assets (6.2) (6.1) (1.7) (1.2) — — Amortization of prior service cost 0.1 0.1 0.1 — 0.1 — Amortization of unrecognized net loss (gain) 2.0 1.8 1.2 1.1 — — Net periodic cost recognized $ 4.6 $ 6.1 $ 2.9 $ 3.2 $ 0.2 $ 0.2 Components of the net periodic cost for retirement and postretirement benefits for the six months ended June 30, 2021 and 2020 were as follows: U.S. Non-U.S. Postretirement (Amounts in millions) 2021 2020 2021 2020 2021 2020 Service cost $ 12.6 $ 12.9 $ 3.7 $ 3.4 $ — $ — Interest cost 6.0 7.5 2.8 3.2 0.2 0.3 Expected return on plan assets (12.7) (12.8) (3.2) (2.4) — — Amortization of prior service cost 0.1 0.1 0.2 0.1 0.1 0.1 Amortization of unrecognized net loss (gain) 3.9 3.5 2.3 2.1 — (0.1) Net periodic cost recognized $ 9.9 $ 11.2 $ 5.8 $ 6.4 $ 0.3 $ 0.3 |
Statement of Shareholders' Equi
Statement of Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Summary of Dividends Declared | Dividends declared per share were as follows: Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Dividends declared per share $ 0.20 $ 0.20 $ 0.40 $ 0.40 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Summarized Financial Information of Reportable Segments | The following is a summary of the financial information of the reportable segments reconciled to the amounts reported in the condensed consolidated financial statements: Three Months Ended June 30, 2021 (Amounts in thousands) FPD FCD Subtotal–Reportable Segments Eliminations and All Other Consolidated Total Sales to external customers $ 617,434 $ 280,744 $ 898,178 $ — $ 898,178 Intersegment sales 257 416 673 (673) — Segment operating income 67,845 37,229 105,074 (32,912) 72,162 Three Months Ended June 30, 2020 FPD FCD Subtotal–Reportable Segments Eliminations and All Other Consolidated Total Sales to external customers $ 673,554 $ 251,458 $ 925,012 $ — $ 925,012 Intersegment sales 510 828 1,338 (1,338) — Segment operating income 60,355 26,227 86,582 (43,130) 43,452 Six Months Ended June 30, 2021 (Amounts in thousands) FPD FCD Subtotal–Reportable Segments Eliminations and All Other Consolidated Total Sales to external customers $ 1,219,600 $ 535,886 $ 1,755,486 $ — $ 1,755,486 Intersegment sales 733 1,096 1,829 (1,829) — Segment operating income 121,627 61,942 183,569 (55,304) 128,265 Six Months Ended June 30, 2020 FPD FCD Subtotal–Reportable Segments Eliminations and All Other Consolidated Total Sales to external customers $ 1,308,680 $ 509,846 $ 1,818,526 $ — $ 1,818,526 Intersegment sales 1,037 1,825 2,862 (2,862) — Segment operating income 100,080 43,408 143,488 (75,833) 67,655 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in accumulated other comprehensive loss ("AOCL"), net of tax for the three months ended June 30, 2021 and 2020: 2021 2020 (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 - April 1 $ (467,326) $ (142,464) $ (286) $ (610,076) $ (537,425) $ (130,852) $ (617) $ (668,894) Other comprehensive income (loss) before reclassifications 13,998 (713) 15 13,300 19,048 (793) 44 18,299 Amounts reclassified from AOCL — 2,772 — 2,772 — 2,551 — 2,551 Net current-period other comprehensive income (loss) 13,998 2,059 15 16,072 19,048 1,758 44 20,850 Balance - June 30 $ (453,328) $ (140,405) $ (271) $ (594,004) $ (518,377) $ (129,094) $ (573) $ (648,044) ________________________________ (1) Includes foreign currency translation adjustments attributable to noncontrolling interests of $6.1 million and $5.9 million at April 1, 2021 and 2020, respectively, and $6.1 million and $5.9 million at June 30, 2021 and 2020, respectively. Amounts in parentheses indicate an increase to AOCL. |
Reclassifications out of Accumulated Other Comprehensive Income (Loss) | The following table presents the reclassifications out of AOCL: Three Months Ended June 30, (Amounts in thousands) Affected line item in the statement of income 2021(1) 2020(1) Pension and other postretirement effects Amortization of actuarial losses(2) Other income (expense), net $ (3,089) $ (2,857) Prior service costs(2) Other income (expense), net (155) (138) Tax benefit 472 444 Net of tax $ (2,772) $ (2,551) __________________________________ (1) Amounts in parentheses indicate decreases to income. None of the reclassified amounts have a noncontrolling interest component. (2) These AOCL components are included in the computation of net periodic pension cost. See Note 12 for additional details. The following table presents the changes in AOCL, net of tax for the six months ended June 30, 2021 and 2020: 2021 2020 (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 $ (456,437) $ (146,723) $ (488) $ (603,648) $ (441,364) $ (137,161) $ (671) $ (579,196) Other comprehensive (loss) income before reclassifications 3,109 804 217 4,130 (77,013) 3,116 98 (73,799) Amounts reclassified from AOCL — 5,514 — 5,514 — 4,951 — 4,951 Net current-period other comprehensive (loss) income 3,109 6,318 217 9,644 (77,013) 8,067 98 (68,848) Balance - June 30 $ (453,328) $ (140,405) $ (271) $ (594,004) $ (518,377) $ (129,094) $ (573) $ (648,044) (1) Includes foreign currency translation adjustments attributable to noncontrolling interests of $5.9 million and $5.1 million at January 1, 2021 and 2020, respectively, and $6.1 million and $5.9 million at June 30, 2021 and 2020, respectively. Amounts in parentheses indicate an increase to AOCL. The following table presents the reclassifications out of AOCL: Six Months Ended June 30, (Amounts in thousands) Affected line item in the statement of income 2021(1) 2020(1) Pension and other postretirement effects Amortization of actuarial losses(2) Other income (expense), net $ (6,148) $ (5,514) Prior service costs(2) Other income (expense), net (308) (279) Tax benefit 942 842 Net of tax $ (5,514) $ (4,951) __________________________________ (1) Amounts in parentheses indicate decreases to income. None of the reclassified amounts have a noncontrolling interest component. |
Realignment and Transformatio_2
Realignment and Transformation Programs (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following is a summary of total charges, net of adjustments, incurred in 2021 related to our 2020 Realignment Program and the total charges incurred in 2020 are related to our 2020 Realignment Program and Flowserve 2.0 Transformation: Three Months Ended June 30, 2021 (Amounts in thousands) FPD FCD Subtotal–Reportable Segments All Other Consolidated Total Realignment Charges Restructuring Charges COS $ 2,016 $ 171 $ 2,187 $ — $ 2,187 SG&A 667 — 667 — 667 $ 2,683 $ 171 $ 2,854 $ — $ 2,854 Non-Restructuring Charges COS $ 1,558 $ 80 $ 1,638 $ — $ 1,638 SG&A 338 (129) 209 915 1,124 $ 1,896 $ (49) $ 1,847 $ 915 $ 2,762 Total Realignment Charges COS $ 3,574 $ 251 $ 3,825 $ — $ 3,825 SG&A 1,005 (129) 876 915 1,791 Total $ 4,579 $ 122 $ 4,701 $ 915 $ 5,616 Three Months Ended June 30, 2020 (Amounts in thousands) FPD FCD Subtotal–Reportable Segments All Other Consolidated Total Realignment Charges Restructuring Charges COS $ 11,650 $ (167) $ 11,483 $ — $ 11,483 SG&A 126 3 129 — 129 $ 11,776 $ (164) $ 11,612 $ — $ 11,612 Non-Restructuring Charges COS $ 12,003 $ 2,917 $ 14,920 $ 548 $ 15,468 SG&A 9,316 4,333 13,649 14,852 28,501 $ 21,319 $ 7,250 $ 28,569 $ 15,400 $ 43,969 Total Realignment Charges COS $ 23,653 $ 2,750 $ 26,403 $ 548 $ 26,951 SG&A 9,442 4,336 13,778 14,852 $ 28,630 Total $ 33,095 $ 7,086 $ 40,181 $ 15,400 $ 55,581 Transformation Charges SG&A $ — $ — $ — $ 5,618 $ 5,618 $ — $ — $ — $ 5,618 $ 5,618 Total Realignment and Transformation Charges COS $ 23,653 $ 2,750 $ 26,403 $ 548 $ 26,951 SG&A 9,442 $ 4,336 13,778 20,470 34,248 Total $ 33,095 $ 7,086 $ 40,181 $ 21,018 $ 61,199 Six Months Ended June 30, 2021 (Amounts in thousands) FPD FCD Subtotal–Reportable Segments All Other Consolidated Total Realignment Charges Restructuring Charges COS $ 6,043 $ 470 $ 6,513 $ — $ 6,513 SG&A 667 (9) 658 — 658 $ 6,710 $ 461 $ 7,171 $ — $ 7,171 Non-Restructuring Charges COS $ 5,449 $ 678 $ 6,127 $ 590 $ 6,717 SG&A 495 739 1,234 4,195 5,429 $ 5,944 $ 1,417 $ 7,361 $ 4,785 $ 12,146 Total Realignment Charges COS $ 11,492 $ 1,148 $ 12,640 $ 590 $ 13,230 SG&A 1,162 730 1,892 4,195 6,087 Total $ 12,654 $ 1,878 $ 14,532 $ 4,785 $ 19,317 Six Months Ended June 30, 2020 (Amounts in thousands) FPD FCD Subtotal–Reportable Segments All Other Consolidated Total Restructuring Charges COS $ 13,331 $ (272) $ 13,059 $ — $ 13,059 SG&A(1) 230 (3) 227 — 227 $ 13,561 $ (275) $ 13,286 $ — $ 13,286 Non-Restructuring Charges COS $ 12,128 $ 9,242 $ 21,370 $ 548 $ 21,918 SG&A 9,801 4,384 14,185 15,497 29,682 $ 21,929 $ 13,626 $ 35,555 $ 16,045 $ 51,600 Total Realignment Charges COS $ 25,459 $ 8,970 $ 34,429 $ 548 $ 34,977 SG&A 10,031 4,381 14,412 15,497 29,909 Total $ 35,490 $ 13,351 $ 48,841 $ 16,045 $ 64,886 Transformation Charges SG&A $ — $ — $ — $ 11,261 $ 11,261 $ — $ — $ — $ 11,261 $ 11,261 Total Realignment Charges COS $ 25,459 $ 8,970 $ 34,429 $ 548 $ 34,977 SG&A 10,031 4,381 14,412 26,758 41,170 Total $ 35,490 $ 13,351 $ 48,841 $ 27,306 $ 76,147 The following is a summary of total inception to date charges, net of adjustments, related to the 2020 Realignment Program: Inception to Date (Amounts in thousands) FPD FCD Subtotal–Reportable Segments All Other Consolidated Total Realignment Charges Restructuring Charges COS $ 23,872 $ 1,697 $ 25,569 $ — $ 25,569 SG&A 718 316 1,034 — 1,034 $ 24,590 $ 2,013 $ 26,603 $ — $ 26,603 Non-Restructuring Charges COS $ 24,653 $ 205 $ 24,858 $ 642 $ 25,500 SG&A 11,176 5,293 16,469 22,077 38,546 $ 35,829 $ 5,498 $ 41,327 $ 22,719 $ 64,046 Total Realignment Charges COS $ 48,525 $ 1,902 $ 50,427 $ 642 $ 51,069 SG&A 11,894 5,609 17,503 22,077 39,580 Total $ 60,419 $ 7,511 $ 67,930 $ 22,719 $ 90,649 |
Schedule of Restructuring Reserve by Type of Cost | The following is a summary of restructuring charges, net of adjustments, for our restructuring activities related to our 2020 Realignment Program: Three Months Ended June 30, 2021 (Amounts in thousands) Severance Contract Termination Asset Write-Downs Other Total COS $ (154) $ — $ (849) $ 3,190 $ 2,187 SG&A 168 — — 499 667 Total $ 14 $ — $ (849) $ 3,689 $ 2,854 Three Months Ended June 30, 2020 (Amounts in thousands) Severance Contract Termination Asset Write-Downs Other Total COS $ 10,572 $ — $ 994 $ (83) $ 11,483 SG&A 126 — 3 — 129 Total $ 10,698 $ — $ 997 $ (83) $ 11,612 Six Months Ended June 30, 2021 (Amounts in thousands) Severance Contract Termination Asset Write-Downs Other Total COS $ 1,219 $ — $ 1,341 $ 3,953 $ 6,513 SG&A 168 — 490 658 Total $ 1,387 $ — $ 1,341 $ 4,443 $ 7,171 Six Months Ended June 30, 2020 (Amounts in thousands) Severance Contract Termination Asset Write-Downs Other Total COS $ 12,255 $ — $ 991 $ (187) $ 13,059 SG&A 265 — — (38) 227 Total $ 12,520 $ — $ 991 $ (225) $ 13,286 The following is a summary of total inception to date restructuring charges, net of adjustments, related to our 2020 Realignment Program: Inception to Date (Amounts in thousands) Severance Contract Termination Asset Write-Downs Other Total COS $ 16,463 $ 52 $ 2,753 $ 6,301 $ 25,569 SG&A 252 — 14 768 1,034 Total $ 16,715 $ 52 $ 2,767 $ 7,069 $ 26,603 The following represents the activity, primarily severance charges from reductions in force, related to the restructuring reserves for the six months ended June 30, 2021 and 2020: (Amounts in thousands) 2021 2020 Balance at January 1 $ 18,255 $ 6,703 Charges, net of adjustments 5,830 12,270 Cash expenditures (14,388) (2,713) Other non-cash adjustments, including currency (461) (118) Balance at June 30 $ 9,236 $ 16,142 |
Basis of Presentation and Acc_3
Basis of Presentation and Accounting Policies (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase to retirement obligations and other liabilities | $ 497,724 | $ 517,566 | $ 543,221 | $ 529,946 |
Increase to retained earnings | 3,677,117 | 3,670,543 | 3,640,227 | 3,610,470 |
Increase to accumulated other comprehensive loss | $ (600,143) | (609,625) | $ (635,292) | $ (653,916) |
Foreign Currency Transactions | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase to retirement obligations and other liabilities | 1,500 | |||
Increase to retained earnings | 14,000 | |||
Increase to accumulated other comprehensive loss | $ (15,500) |
Revision to Previously Report_3
Revision to Previously Reported Financial Information - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Increase to retained earnings | $ 3,677,117 | $ 3,670,543 | $ 3,640,227 | $ 3,610,470 |
Increase to retirement obligations and other liabilities | 497,724 | 517,566 | 543,221 | 529,946 |
Increase to accumulated other comprehensive loss | $ (600,143) | (609,625) | $ (635,292) | $ (653,916) |
Foreign Currency Transactions | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Increase to retained earnings | 14,000 | |||
Increase to retirement obligations and other liabilities | 1,500 | |||
Increase to accumulated other comprehensive loss | $ (15,500) |
Revision to Previously Report_4
Revision to Previously Reported Financial Information - Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Contract assets, net of allowance for expected credit losses | $ 262,231 | $ 277,734 | $ 309,196 | ||||
Total current assets | 2,440,688 | 2,904,333 | 2,430,602 | ||||
Property, plant and equipment, net of accumulated depreciation | 526,101 | 556,873 | 547,471 | ||||
Other assets, net of allowance for expected credit losses | 227,145 | 221,426 | 235,530 | ||||
Total assets | 4,818,669 | 5,314,677 | 4,778,378 | ||||
Accrued liabilities | 422,161 | 463,222 | 397,012 | ||||
Contract liabilities | 209,092 | 194,227 | 219,633 | ||||
Debt due within one year | 9,599 | 8,995 | 9,214 | ||||
Total current liabilities | 1,069,716 | 1,141,633 | 1,090,363 | ||||
Total debt due after one year | 1,307,149 | 1,717,911 | 1,373,124 | ||||
Retirement obligations and other liabilities | 497,724 | 517,566 | $ 543,221 | 529,946 | |||
Retained earnings | 3,677,117 | 3,670,543 | 3,640,227 | 3,610,470 | |||
Accumulated other comprehensive loss | 600,143 | 609,625 | 635,292 | 653,916 | |||
Total Flowserve Corporation shareholders’ equity | 1,740,984 | 1,730,991 | 1,671,921 | 1,618,431 | |||
Total equity | 1,770,692 | $ 1,741,786 | 1,761,321 | 1,702,343 | 1,646,210 | $ 1,639,833 | $ 1,772,341 |
Total liabilities and equity | $ 4,818,669 | 5,314,677 | 4,778,378 | ||||
Foreign Currency Transactions | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Retirement obligations and other liabilities | 1,500 | ||||||
Retained earnings | 14,000 | ||||||
Accumulated other comprehensive loss | 15,500 | ||||||
As Reported | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Contract assets, net of allowance for expected credit losses | 309,149 | ||||||
Total current assets | 2,430,555 | ||||||
Property, plant and equipment, net of accumulated depreciation | 541,768 | ||||||
Other assets, net of allowance for expected credit losses | 218,604 | ||||||
Total assets | 4,755,702 | ||||||
Accrued liabilities | 401,041 | ||||||
Contract liabilities | 214,135 | ||||||
Debt due within one year | 9,058 | ||||||
Total current liabilities | 1,088,738 | ||||||
Total debt due after one year | 1,367,478 | ||||||
Retirement obligations and other liabilities | 516,087 | 541,721 | 470,400 | ||||
Retained earnings | 3,656,449 | 3,625,291 | 3,643,868 | ||||
Accumulated other comprehensive loss | 594,052 | 618,856 | 643,173 | ||||
Total Flowserve Corporation shareholders’ equity | 1,732,470 | 1,673,421 | 1,662,572 | ||||
Total equity | 1,762,800 | 1,703,843 | 1,690,351 | ||||
Total liabilities and equity | 4,755,702 | ||||||
Adjustments | Foreign Currency Transactions | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Retirement obligations and other liabilities | 1,479 | 1,500 | |||||
Retained earnings | 14,094 | 14,936 | |||||
Accumulated other comprehensive loss | 15,573 | (16,436) | |||||
Total Flowserve Corporation shareholders’ equity | (1,479) | (1,500) | |||||
Total equity | $ (1,479) | $ (1,500) | |||||
Adjustments | Operating Lease, Right-Of-Use Asset And Liability | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Property, plant and equipment, net of accumulated depreciation | 5,703 | ||||||
Total debt due after one year | 5,646 | ||||||
Adjustments | Asbestos Receivables And Expected Insurance Proceeds | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Other assets, net of allowance for expected credit losses | 16,926 | ||||||
Adjustments | Restructuring Reserves | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Accrued liabilities | (4,029) | ||||||
Adjustments | Estimated Costs Under The Over Time Revenue Recognition Model | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Contract liabilities | 5,498 | ||||||
Adjustments | IBNR Reserves | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Retirement obligations and other liabilities | 59,546 | ||||||
Adjustments | Immaterial Errors | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Retained earnings | (33,398) | ||||||
Adjustments | Accounting Errors | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Contract assets, net of allowance for expected credit losses | 47 | ||||||
Total current assets | 47 | ||||||
Total assets | 22,676 | ||||||
Debt due within one year | 156 | ||||||
Total current liabilities | 1,625 | ||||||
Accumulated other comprehensive loss | (10,743) | ||||||
Total Flowserve Corporation shareholders’ equity | (44,141) | ||||||
Total equity | (44,141) | ||||||
Total liabilities and equity | $ 22,676 |
Revision to Previously Report_5
Revision to Previously Reported Financial Information - Income Statement (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Sales | $ 898,178 | $ 925,012 | $ 1,755,486 | $ 1,818,526 | ||||
Cost of sales | (619,940) | (655,305) | (1,226,348) | (1,282,360) | ||||
Gross profit | 278,238 | 269,707 | 529,138 | 536,166 | ||||
Selling, general and administrative expense | (210,789) | (229,343) | (409,104) | (474,794) | ||||
Operating income | 72,162 | 43,452 | 128,265 | 67,655 | ||||
Interest Expense | (14,322) | (12,935) | (31,101) | (25,898) | ||||
Other income (expense), net | (7,850) | $ (18,742) | $ 4,673 | (18,907) | (19,213) | 19,295 | $ 23,969 | $ 5,226 |
Earnings before income taxes | 50,455 | 60,383 | 77,958 | 12,759 | 71,408 | 63,950 | 141,909 | 202,292 |
Provision for income taxes | (2,711) | (767) | (19,196) | (4,485) | (6,503) | (41,453) | (60,650) | (61,417) |
Net earnings, including noncontrolling interests | 47,744 | 59,616 | 58,762 | 8,274 | 64,905 | 22,497 | 81,259 | 140,875 |
Net earnings of Flowserve Corporation | $ 45,354 | $ 56,051 | $ 56,115 | $ 6,132 | $ 59,434 | $ 18,254 | $ 74,369 | $ 130,420 |
Basic (in dollars per share) | $ 0.35 | $ 0.43 | $ 0.43 | $ 0.05 | $ 0.46 | $ 0.14 | $ 0.57 | $ 1 |
Diluted (in dollars per share) | $ 0.35 | $ 0.43 | $ 0.43 | $ 0.05 | $ 0.45 | $ 0.14 | $ 0.57 | $ 1 |
As Reported | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Sales | $ 924,965 | $ 1,819,422 | ||||||
Cost of sales | (657,805) | (1,286,285) | ||||||
Gross profit | 267,160 | 533,137 | ||||||
Selling, general and administrative expense | (227,358) | (470,980) | ||||||
Operating income | 42,888 | 68,440 | ||||||
Interest Expense | (25,863) | |||||||
Other income (expense), net | $ (17,811) | $ (963) | (14,941) | 8,521 | $ 7,558 | $ (10,254) | ||
Earnings before income taxes | 61,314 | 72,322 | 16,196 | 53,996 | 125,498 | 186,812 | ||
Provision for income taxes | (856) | (18,672) | (5,409) | (41,719) | (59,175) | (60,031) | ||
Net earnings, including noncontrolling interests | 60,458 | 53,650 | 10,787 | 12,277 | 66,323 | 126,781 | ||
Net earnings of Flowserve Corporation | $ 56,893 | $ 51,003 | $ 8,645 | $ 8,035 | $ 59,433 | $ 116,326 | ||
Basic (in dollars per share) | $ 0.44 | $ 0.39 | $ 0.07 | $ 0.06 | $ 0.46 | $ 0.89 | ||
Diluted (in dollars per share) | $ 0.43 | $ 0.39 | $ 0.07 | $ 0.06 | $ 0.45 | $ 0.89 | ||
Adjustments | Foreign Currency Transactions | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Other income (expense), net | $ (931) | $ 5,636 | $ (3,966) | $ 10,774 | $ 16,411 | $ 15,480 | ||
Earnings before income taxes | (931) | 5,636 | 16,411 | 15,480 | ||||
Provision for income taxes | 89 | (524) | (1,475) | (1,386) | ||||
Net earnings, including noncontrolling interests | (842) | 5,112 | 14,936 | 14,094 | ||||
Net earnings of Flowserve Corporation | $ (842) | $ 5,112 | $ 14,936 | $ 14,094 | ||||
Basic (in dollars per share) | $ (0.01) | $ 0.04 | $ 0.11 | $ 0.11 | ||||
Diluted (in dollars per share) | $ 0 | $ 0.04 | $ 0.12 | $ 0.11 | ||||
Adjustments | Asbestos Settlement And Defense Costs | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Selling, general and administrative expense | (1,985) | (3,814) | ||||||
Adjustments | Non-Restructuring Realignment Charges | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Cost of sales | 2,500 | 3,925 | ||||||
Adjustments | Accounting Errors | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Sales | 47 | (896) | ||||||
Gross profit | 2,547 | 3,029 | ||||||
Operating income | 564 | (785) | ||||||
Interest Expense | (35) | |||||||
Earnings before income taxes | (3,437) | 9,954 | ||||||
Provision for income taxes | 924 | 266 | ||||||
Net earnings, including noncontrolling interests | (2,513) | 10,220 | ||||||
Net earnings of Flowserve Corporation | $ (2,513) | $ 10,219 | ||||||
Basic (in dollars per share) | $ (0.02) | $ 0.08 | ||||||
Diluted (in dollars per share) | $ (0.02) | $ 0.08 |
Revision to Previously Report_6
Revision to Previously Reported Financial Information - Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Net earnings | $ 47,744 | $ 59,616 | $ 58,762 | $ 8,274 | $ 64,905 | $ 22,497 | $ 81,259 | $ 140,875 |
Foreign currency translation adjustments, net of taxes | 13,998 | 42,273 | 19,555 | 19,048 | 3,109 | (77,013) | (57,456) | (15,183) |
Other comprehensive income (loss), net of tax | 16,072 | 25,665 | 18,620 | 20,850 | 9,644 | (68,848) | (50,226) | (24,562) |
Comprehensive income (loss), including noncontrolling interests | 63,816 | 85,281 | 77,382 | 29,124 | 74,549 | (46,351) | 31,033 | 116,313 |
Comprehensive income (loss) attributable to Flowserve Corporation | $ 61,413 | 81,718 | 74,739 | 27,045 | $ 68,916 | (51,369) | 23,371 | 105,088 |
As Reported | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Net earnings | 60,458 | 53,650 | 10,787 | 12,277 | 66,323 | 126,781 | ||
Foreign currency translation adjustments, net of taxes | 41,411 | 25,204 | 15,084 | (66,269) | (41,022) | 388 | ||
Other comprehensive income (loss), net of tax | 24,803 | 24,269 | 16,886 | (58,104) | (33,792) | (8,991) | ||
Comprehensive income (loss), including noncontrolling interests | 85,261 | 77,919 | 27,673 | (45,827) | 32,531 | 117,790 | ||
Comprehensive income (loss) attributable to Flowserve Corporation | 81,698 | 75,276 | 25,594 | (50,845) | 24,869 | 106,565 | ||
Adjustments | Foreign Currency Transactions | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Net earnings | (842) | 5,112 | 14,936 | 14,094 | ||||
Foreign currency translation adjustments, net of taxes | 862 | (5,649) | 3,964 | (10,744) | (16,434) | (15,571) | ||
Other comprehensive income (loss), net of tax | 862 | (5,649) | (16,434) | (15,571) | ||||
Comprehensive income (loss), including noncontrolling interests | 20 | (537) | (1,498) | (1,477) | ||||
Comprehensive income (loss) attributable to Flowserve Corporation | $ 20 | $ (537) | $ (1,498) | $ (1,477) | ||||
Adjustments | Accounting Errors | ||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||
Net earnings | (2,513) | 10,220 | ||||||
Other comprehensive income (loss), net of tax | 3,964 | (10,744) | ||||||
Comprehensive income (loss), including noncontrolling interests | 1,451 | (524) | ||||||
Comprehensive income (loss) attributable to Flowserve Corporation | $ 1,451 | $ (524) |
Revision to Previously Report_7
Revision to Previously Reported Financial Information - Cash Flows (Details) - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Net cash flows provided (used) by operating activities | $ 61,306 | $ 20,183 | $ 114,249 | ||
Net cash flows provided (used) by investing activities | (23,840) | (18,262) | (32,665) | ||
Net cash flows provided (used) by financing activities | (491,094) | (93,732) | 178,857 | ||
Cash and cash equivalents | $ 630,397 | 561,705 | 921,178 | $ 1,095,274 | $ 670,980 |
As Reported | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Net cash flows provided (used) by operating activities | 21,231 | 115,629 | |||
Net cash flows provided (used) by investing activities | (21,161) | (34,160) | |||
Net cash flows provided (used) by financing activities | (91,881) | 178,972 | |||
Cash and cash equivalents | 561,705 | 921,178 | |||
Adjustments | |||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
Net cash flows provided (used) by operating activities | (1,048) | (1,380) | |||
Net cash flows provided (used) by investing activities | 2,899 | 1,495 | |||
Net cash flows provided (used) by financing activities | (1,851) | (115) | |||
Cash and cash equivalents | $ 0 | $ 0 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - segments | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Number of operating segments | 2 | |||
Transferred over Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 15.00% | 22.00% | 16.00% | 22.00% |
Transferred at Point in Time | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from products and services | 85.00% | 78.00% | 84.00% | 78.00% |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 898,178 | $ 925,012 | $ 1,755,486 | $ 1,818,526 |
Original Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 434,484 | 462,823 | 841,358 | 914,175 |
Aftermarket | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 463,694 | 462,189 | 914,128 | 904,351 |
FPD | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 617,434 | 673,554 | 1,219,600 | 1,308,680 |
FPD | Original Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 220,387 | 271,465 | 434,541 | 524,198 |
FPD | Aftermarket | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 397,047 | 402,089 | 785,059 | 784,482 |
FCD | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 280,744 | 251,458 | 535,886 | 509,846 |
FCD | Original Equipment | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 214,097 | 191,358 | 406,817 | 389,977 |
FCD | Aftermarket | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 66,647 | 60,100 | 129,069 | 119,869 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 341,729 | 376,347 | 655,950 | 766,997 |
North America | FPD | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 243,611 | 269,610 | 467,582 | 537,135 |
North America | FCD | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 98,118 | 106,737 | 188,368 | 229,862 |
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 61,098 | 53,814 | 109,950 | 101,511 |
Latin America | FPD | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 52,219 | 46,909 | 94,256 | 89,096 |
Latin America | FCD | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 8,879 | 6,905 | 15,694 | 12,415 |
Middle East And Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 96,192 | 118,427 | 206,433 | 242,260 |
Middle East And Africa | FPD | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 69,662 | 96,740 | 152,207 | 193,908 |
Middle East And Africa | FCD | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 26,530 | 21,687 | 54,226 | 48,352 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 208,319 | 192,648 | 411,627 | 359,660 |
Asia Pacific | FPD | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 119,375 | 128,102 | 244,027 | 240,557 |
Asia Pacific | FCD | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 88,944 | 64,546 | 167,600 | 119,103 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 190,840 | 183,776 | 371,526 | 348,098 |
Europe | FPD | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | 132,567 | 132,193 | 261,528 | 247,984 |
Europe | FCD | ||||
Disaggregation of Revenue [Line Items] | ||||
Sales | $ 58,273 | $ 51,583 | $ 109,998 | $ 100,114 |
Revenue Recognition (Performanc
Revenue Recognition (Performance obligations) (Details) $ in Millions | Jun. 30, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 470 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 294 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 6 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 176 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, period | 1 year |
Revenue Recognition (Contract L
Revenue Recognition (Contract Liabilities) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Change In Contract With Customer, Asset And Liability [Roll Forward] | ||
Contract Assets, Beginning balance | $ 277,734 | |
Contract Liabilities, Current, Beginning balance | 194,227 | |
Revenue recognized that was included in contract liabilities at the beginning of the period | (17,026) | $ (4,412) |
Amounts transferred from contract assets to receivables | 12,232 | (44,276) |
Contract Assets, Ending balance | 262,231 | 309,196 |
Contract Liabilities, Current, Ending balance | 209,092 | 219,633 |
Short-term Contract with Customer | ||
Change In Contract With Customer, Asset And Liability [Roll Forward] | ||
Contract Assets, Beginning balance | 277,734 | 272,914 |
Revenue recognized that was included in contract liabilities at the beginning of the period | 0 | 0 |
Revenue recognized in the period in excess of billings | 321,040 | 386,250 |
Billings arising during the period in excess of revenue recognized | 0 | 0 |
Amounts transferred from contract assets to receivables | (326,634) | (335,505) |
Other contract asset, net | (9,909) | (14,463) |
Long-term Contract with Customer | ||
Change In Contract With Customer, Asset And Liability [Roll Forward] | ||
Contract Assets, Beginning balance | 1,139 | 9,280 |
Revenue recognized that was included in contract liabilities at the beginning of the period | 0 | 0 |
Revenue recognized in the period in excess of billings | 54 | 511 |
Billings arising during the period in excess of revenue recognized | 0 | 0 |
Amounts transferred from contract assets to receivables | (28) | (93) |
Other contract asset, net | (86) | (6,689) |
Contract Assets, Ending balance | 1,079 | 3,009 |
Short-term Contract with Customer, Liability | ||
Change In Contract With Customer, Asset And Liability [Roll Forward] | ||
Contract Liabilities, Current, Beginning balance | 194,227 | 221,095 |
Revenue recognized that was included in contract liabilities at the beginning of the period | (112,835) | (138,994) |
Revenue recognized in the period in excess of billings | 0 | 0 |
Billings arising during the period in excess of revenue recognized | 126,591 | 141,156 |
Amounts transferred from contract assets to receivables | 0 | 0 |
Other contract liability, net | 1,109 | (3,624) |
Long-term Contract With Customer, Liability | ||
Change In Contract With Customer, Asset And Liability [Roll Forward] | ||
Contract Liabilities, Noncurrent, Beginning balance | 822 | 1,652 |
Revenue recognized that was included in contract liabilities at the beginning of the period | 0 | (646) |
Revenue recognized in the period in excess of billings | 0 | 0 |
Billings arising during the period in excess of revenue recognized | 0 | 0 |
Amounts transferred from contract assets to receivables | 0 | 0 |
Other contract liability, net | (19) | (31) |
Contract Liabilities, Noncurrent, Ending balance | $ 803 | $ 975 |
Allowance for Expected Credit_3
Allowance for Expected Credit Losses (Details) - USD ($) $ in Thousands | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Decrease to retained earnings | $ (3,677,117) | $ (3,610,470) | $ (3,670,543) | $ (3,640,227) | |
Contract assets, allowance for credit loss as a percentage of assets | 1.00% | ||||
Trade receivables | |||||
Beginning balance | $ 74,782 | 72,084 | $ 75,176 | $ 53,412 | |
Charges to cost and expenses, net of recoveries | 865 | 11,800 | |||
Write-offs | (2,015) | ||||
Currency effects and other, net | 756 | (98) | |||
Ending balance | 74,782 | 72,084 | |||
Contract assets | |||||
Beginning balance | 3,205 | 206 | |||
Charges to cost and expenses, net of recoveries | 0 | 0 | |||
Write-offs | 0 | ||||
Currency effects and other, net | (167) | 25 | |||
Ending balance | 3,038 | 3,010 | |||
Long-term Receivables | |||||
Beginning balance | 67,842 | 68,555 | |||
Currency effects and other, net | (72) | (617) | |||
Ending balance | 67,770 | 67,259 | |||
ASU No. 2016-13 - Measurement of Credit Losses on Financial Instruments (Topic 326) | |||||
Trade receivables | |||||
Beginning balance | $ 6,970 | ||||
Contract assets | |||||
Beginning balance | 2,779 | ||||
Long-term Receivables | |||||
Beginning balance | $ 0 | $ (679) |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Jan. 01, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock available under stock option plan (in shares) | 11,273,436 | 11,273,436 | ||||
Vesting period | 3 years | |||||
Options, outstanding, number (in shares) | 114,943 | 114,943 | ||||
Options, grants in period, gross (in shares) | 0 | 0 | ||||
Plan 2020 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized to issue under share based compensation plans (in shares) | 12,500,000 | |||||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation arrangement age requirement to vest over original vesting period | 55 years | |||||
Time in service requirement to vest over original vesting period | 10 years | |||||
Nonvested awards, compensation cost not yet recognized | $ 38.1 | $ 38.1 | $ 18.7 | |||
Nonvested awards, compensation cost not yet recognized, period for recognition | 2 years | |||||
Equity instruments other than options, vested in period, fair value | 0.9 | $ 2.9 | $ 24.4 | $ 21 | ||
Allocated share-based compensation expense, net of tax | 5.1 | 3.3 | 12.7 | 14.4 | ||
Allocated share-based compensation expense | $ 6.7 | $ 4.2 | $ 16.5 | $ 18.5 | ||
Equity instruments other than options, nonvested, number (in shares) | 1,701,401 | 1,701,401 | 1,373,657 | |||
Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Nonvested awards, compensation cost not yet recognized, period for recognition | 36 months | |||||
Equity instruments other than options, nonvested, number (in shares) | 509,000 | 509,000 | ||||
Total shareholder return performance measure, as a percentage | 15.00% | 15.00% | ||||
Estimated vesting of shares based on performance shares (in shares) | 480,000 | 480,000 | ||||
Minimum | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options, vested and expected to vest, exercisable, number (in shares) | 0 | 0 | ||||
Minimum | Performance Shares | 2019 and 2020 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting rights, percentage | 0.00% | |||||
Maximum | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Options, vested and expected to vest, exercisable, number (in shares) | 1,063,000 | 1,063,000 | ||||
Maximum | Performance Shares | 2019 and 2020 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting rights, percentage | 200.00% | |||||
Maximum | Performance Shares | 2021 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting rights, percentage | 230.00% |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans (Information Regarding Restricted Shares) (Details) - Restricted Stock | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Shares | |
Outstanding, Shares, Beginning balance (in shares) | shares | 1,373,657 |
Granted, Shares (in shares) | shares | 995,204 |
Vested, Shares (in shares) | shares | (550,370) |
Forfeited, Shares (in shares) | shares | (117,090) |
Outstanding, Shares, Ending balance (in shares) | shares | 1,701,401 |
Weighted Average Grant-Date Fair Value | |
Outstanding, Weighted Average Grant-Date Fair Value, Beginning balance (in dollars per share) | $ / shares | $ 46.76 |
Granted, Weighted Average Grant-Date Fair Value (in dollars per share) | $ / shares | 39.59 |
Vested, Weighted Average Grant-Date Fair Value (in dollars per share) | $ / shares | 44.27 |
Forfeited, Weighted Average Grant-Date Fair Value (in dollars per share) | $ / shares | 48.01 |
Outstanding, Weighted Average Grant-Date Fair Value, Ending balance (in dollars per share) | $ / shares | $ 43.29 |
Derivative Instruments and He_3
Derivative Instruments and Hedges (Textual) (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2021EUR (€) | Dec. 31, 2020USD ($) | Sep. 22, 2020EUR (€) | Jun. 30, 2016EUR (€) | |
2022 EUR Senior Notes | ||||||
Derivative [Line Items] | ||||||
Stated interest rate (as a percent) | 1.25% | 1.25% | 1.25% | 1.25% | ||
2022 EUR Senior Notes | ||||||
Derivative [Line Items] | ||||||
Designated amount, net investment hedge | € | € 336,300,000 | € 255,700,000 | ||||
Currency Swap | ||||||
Derivative [Line Items] | ||||||
Derivative, notional amount | € | € 423,200,000 | |||||
Derivative, Interest Payable | $ 2.1 | $ 2.7 | ||||
Currency Swap | Fair Value, Inputs, Level 2 | ||||||
Derivative [Line Items] | ||||||
Derivative Liability | (5.3) | (5.3) | $ (18.1) | |||
Not Designated as Hedging Instrument | Forward Exchange Contract | ||||||
Derivative [Line Items] | ||||||
Derivative, notional amount | $ 385.7 | $ 385.7 | $ 388.1 | |||
Minimum remaining maturity of foreign currency derivatives | 26 days | |||||
Maximum remaining maturity of foreign currency derivatives | 27 months |
Derivative Instruments and He_4
Derivative Instruments and Hedges (Fair Value Balance Sheet Disclosures) (Details) - Not Designated as Hedging Instrument - Foreign Exchange Contract - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Current derivative assets | $ 1,389 | $ 2,857 |
Noncurrent derivative assets | 20 | 249 |
Current derivative liabilities | 914 | 682 |
Noncurrent derivative liabilities | $ 62 | $ 0 |
Derivative Instruments and He_5
Derivative Instruments and Hedges (Fair Value of Forward Exchange Contracts) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Forward Contracts | ||||
Derivative [Line Items] | ||||
(Losses) gains recognized in income | $ (4,312) | $ (3,520) | $ 1,793 | $ (61) |
Derivative Instruments and He_6
Derivative Instruments and Hedges (Cross Currency Swap) (Details) - Currency Swap - Net Investment Hedging - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative [Line Items] | ||||
Loss (gain) - included component | $ 1,798 | $ 0 | $ 185 | $ 0 |
(Gain) loss - excluded component | (11,749) | 0 | 3,890 | 0 |
(Gain) loss recognized in AOCL | $ (9,951) | $ 0 | $ 4,075 | $ 0 |
Derivative Instruments and He_7
Derivative Instruments and Hedges (Remeasurement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Net Investment Hedging | ||||
Derivative [Line Items] | ||||
Loss recognized in AOCL | $ 0 | $ 3,990 | $ 29,554 | $ 12,510 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Debt Instrument [Line Items] | |||
Finance lease obligations and other borrowings | $ 24,633 | $ 25,390 | |
Debt and finance lease obligations | 1,316,748 | 1,726,906 | |
Less amounts due within one year | 9,599 | 8,995 | |
Total debt due after one year | $ 1,307,149 | $ 1,717,911 | $ 1,373,124 |
2022 EUR Senior Notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 1.25% | 1.25% | |
Debt instrument, unamortized discount (premium) and debt issuance costs, net | $ 1,070 | ||
Long-term debt | $ 0 | $ 410,243 | |
2022 Senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 3.50% | 3.50% | |
Debt instrument, unamortized discount (premium) and debt issuance costs, net | $ 882 | $ 1,235 | |
Long-term debt | $ 499,118 | $ 498,765 | |
2023 Senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 4.00% | 4.00% | |
Debt instrument, unamortized discount (premium) and debt issuance costs, net | $ 1,122 | $ 1,345 | |
Long-term debt | $ 298,878 | 298,655 | |
2030 USD Senior notes | |||
Debt Instrument [Line Items] | |||
Stated interest rate (as a percent) | 3.50% | ||
Debt instrument, unamortized discount (premium) and debt issuance costs, net | $ 5,881 | 6,147 | |
Long-term debt | $ 494,119 | $ 493,853 |
Debt (Details Textual)
Debt (Details Textual) | Mar. 19, 2021USD ($) | Jul. 16, 2019 | Dec. 31, 2020USD ($)$ / shares | Jun. 30, 2021USD ($)$ / shares | Jun. 30, 2020USD ($) | Jun. 30, 2020 | Jun. 30, 2022 | Dec. 31, 2021 | Sep. 04, 2020USD ($)$ / shares |
Line of Credit Facility [Line Items] | |||||||||
Loss on extinguishment of debt | $ 7,610,000 | $ 0 | |||||||
Common shares, par value (in dollars per share) | $ / shares | $ 1.25 | $ 1.25 | |||||||
2022 EUR Senior Notes | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Repayment of debt | $ 400,900,000 | $ 191,400,000 | |||||||
Loss on extinguishment of debt | 7,600,000 | 1,200,000 | |||||||
Make-whole premium | $ 6,600,000 | ||||||||
Senior Credit Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Letters of credit outstanding | 58,100,000 | $ 61,100,000 | |||||||
Line of credit facility, current borrowing capacity | 741,900,000 | 738,900,000 | |||||||
Revolving Credit Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Revolving credit facility | $ 0 | $ 0 | |||||||
Revolving Credit Facility | New Credit Agreement | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 800,000,000 | ||||||||
Cash and cash equivalents excluded from leverage ratio | $ 250,000,000 | ||||||||
Common shares, par value (in dollars per share) | $ / shares | $ 1.25 | ||||||||
Revolving Credit Facility | New Senior Credit Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Maximum increase in borrowing capacity | $ 400,000,000 | ||||||||
Line of credit, commitment fee (as a percentage) | 0.20% | ||||||||
Letter of Credit | New Senior Credit Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | 750,000,000 | ||||||||
Swing Line Loans | New Senior Credit Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit facility, maximum borrowing capacity | $ 30,000,000 | ||||||||
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] | |||||||||
Commitment fee percentage for unused capacity | 0.09% | ||||||||
Minimum | 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 Credit Agreement | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Percentage of dividends and share purchases | 115.00% | ||||||||
Maximum | Revolving Credit Facility | New Credit Agreement | Forecast | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Leverage ratio | 4 | 4 | |||||||
Leverage ratio with acquisitions | 4.50 | ||||||||
Maximum | Revolving Credit Facility | New Senior Credit Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Commitment fee percentage for unused capacity | 0.30% | ||||||||
Maximum | 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% |
Fair Value (Details)
Fair Value (Details) $ in Millions | Jun. 30, 2021USD ($) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Senior notes | $ 1,292.1 |
Estimate of Fair Value Measurement | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Senior notes | $ 1,356.4 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Net Components of Inventory | ||
Raw materials | $ 327,799 | $ 321,600 |
Work in process | 253,097 | 210,174 |
Finished goods | 201,802 | 221,532 |
Less: Excess and obsolete reserve | (92,553) | (86,078) |
Inventories, net | $ 690,145 | $ 667,228 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||||||||
Net earnings of Flowserve Corporation | $ 45,354 | $ 56,051 | $ 56,115 | $ 6,132 | $ 59,434 | $ 18,254 | $ 74,369 | $ 130,420 |
Dividends on restricted shares not expected to vest | 0 | 0 | 0 | 0 | ||||
Earnings attributable to common and participating shareholders | $ 45,354 | $ 6,132 | $ 59,434 | $ 18,254 | ||||
Weighted average shares: | ||||||||
Common stock (in shares) | 130,279 | 130,148 | 130,342 | 130,439 | ||||
Participating securities (in shares) | 26 | 22 | 24 | 24 | ||||
Denominator for basic earnings per common share (in shares) | 130,305 | 130,170 | 130,366 | 130,463 | ||||
Effect of potentially dilutive securities (in shares) | 499 | 560 | 539 | 689 | ||||
Denominator for diluted earnings per common share (in shares) | 130,804 | 130,730 | 130,905 | 131,152 | ||||
Earnings per common share: | ||||||||
Basic (in dollars per share) | $ 0.35 | $ 0.43 | $ 0.43 | $ 0.05 | $ 0.46 | $ 0.14 | $ 0.57 | $ 1 |
Diluted (in dollars per share) | $ 0.35 | $ 0.43 | $ 0.43 | $ 0.05 | $ 0.45 | $ 0.14 | $ 0.57 | $ 1 |
Legal Matters and Contingenci_3
Legal Matters and Contingencies (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021USD ($)claim | Jun. 30, 2020USD ($)claim | Jun. 30, 2021USD ($)claim | Jun. 30, 2020USD ($)claim | Dec. 31, 2020claim | |
Liability for Asbestos and Environmental Claims, Net [Roll Forward] | |||||
Beginning claims | 8,445 | 8,282 | 8,366 | 8,345 | 8,345 |
Beginning claims | 8,366 | 8,345 | 8,345 | ||
New claims | 603 | 456 | 1,232 | 1,037 | 2,140 |
Resolved claims | (479) | (667) | (1,023) | (1,308) | (2,203) |
Other | (10) | 29 | (16) | 26 | 84 |
Ending claims | 8,559 | 8,100 | 8,559 | 8,100 | 8,366 |
Ending claims | 8,559 | 8,100 | 8,559 | 8,100 | 8,366 |
Loss contingency expense | $ | $ 1.8 | $ 5.9 | $ 4.5 | $ 10.2 | |
Payments For (Proceeds From) Insurance Settlements | $ | $ (3.3) | $ (6.7) |
Retirement and Postretirement_3
Retirement and Postretirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Components of the net periodic cost for retirement and postretirement benefits | ||||
Transformation Charges | $ 5,618 | $ 11,261 | ||
Selling, General and Administrative Expenses | ||||
Components of the net periodic cost for retirement and postretirement benefits | ||||
Transformation Charges | 5,618 | 11,261 | ||
Eliminations and All Other | ||||
Components of the net periodic cost for retirement and postretirement benefits | ||||
Transformation Charges | 5,618 | 11,261 | ||
Eliminations and All Other | Selling, General and Administrative Expenses | ||||
Components of the net periodic cost for retirement and postretirement benefits | ||||
Transformation Charges | 5,618 | 11,261 | ||
Domestic Plan | ||||
Components of the net periodic cost for retirement and postretirement benefits | ||||
Service cost | $ 5,800 | 6,600 | $ 12,600 | 12,900 |
Interest cost | 2,900 | 3,700 | 6,000 | 7,500 |
Expected return on plan assets | (6,200) | (6,100) | (12,700) | (12,800) |
Amortization of prior service cost | 100 | 100 | 100 | 100 |
Amortization of unrecognized net loss (gain) | 2,000 | 1,800 | 3,900 | 3,500 |
Net periodic cost recognized | 4,600 | 6,100 | 9,900 | 11,200 |
Foreign Plan | ||||
Components of the net periodic cost for retirement and postretirement benefits | ||||
Service cost | 1,900 | 1,700 | 3,700 | 3,400 |
Interest cost | 1,400 | 1,600 | 2,800 | 3,200 |
Expected return on plan assets | (1,700) | (1,200) | (3,200) | (2,400) |
Amortization of prior service cost | 100 | 0 | 200 | 100 |
Amortization of unrecognized net loss (gain) | 1,200 | 1,100 | 2,300 | 2,100 |
Net periodic cost recognized | 2,900 | 3,200 | 5,800 | 6,400 |
Postretirement Medical Benefits | ||||
Components of the net periodic cost for retirement and postretirement benefits | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 100 | 200 | 200 | 300 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 100 | 0 | 100 | 100 |
Amortization of unrecognized net loss (gain) | 0 | 0 | 0 | (100) |
Net periodic cost recognized | $ 200 | $ 200 | $ 300 | $ 300 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Nov. 13, 2014 | |
Equity, Class of Treasury Stock [Line Items] | |||||
Cash dividends declared per share (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.40 | $ 0.40 | |
Repurchase of shares (in shares) | 311,000 | 440,000 | 1,057,115 | ||
Treasury Stock, Value, Acquired, Cost Method | $ 12,500,000 | $ 17,500,000 | $ 32,100,000 | ||
Remaining authorized repurchase capacity | $ 101,200,000 | $ 101,200,000 | |||
Share repurchase program 2014 | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Authorized amount to be repurchased | $ 500,000,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||||||
Income before income tax | $ 50,455 | $ 60,383 | $ 77,958 | $ 12,759 | $ 71,408 | $ 63,950 | $ 141,909 | $ 202,292 |
Income tax expense | $ 2,711 | $ 767 | $ 19,196 | $ 4,485 | $ 6,503 | $ 41,453 | $ 60,650 | $ 61,417 |
Effective tax rate (as a percent) | 5.40% | 35.20% | 9.10% | 64.80% | ||||
Unrecognized tax benefits, period decrease | $ 3,600 | |||||||
Unrecognized tax benefits approximate amount of estimated reduction within the next twelve months | $ 13,000 | $ 13,000 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Summarized financial information of the reportable segments | ||||
Sales | $ 898,178 | $ 925,012 | $ 1,755,486 | $ 1,818,526 |
Segment operating income | 72,162 | 43,452 | 128,265 | 67,655 |
Operating Segments | ||||
Summarized financial information of the reportable segments | ||||
Sales | 898,178 | 925,012 | 1,755,486 | 1,818,526 |
Intersegment sales | 673 | 1,338 | 1,829 | 2,862 |
Segment operating income | 105,074 | 86,582 | 183,569 | 143,488 |
Intersegment sales | ||||
Summarized financial information of the reportable segments | ||||
Intersegment sales | (673) | (1,338) | (1,829) | (2,862) |
Segment operating income | (32,912) | (43,130) | (55,304) | (75,833) |
FPD | ||||
Summarized financial information of the reportable segments | ||||
Sales | 617,434 | 673,554 | 1,219,600 | 1,308,680 |
Intersegment sales | 257 | 510 | 733 | 1,037 |
FPD | Operating Segments | ||||
Summarized financial information of the reportable segments | ||||
Sales | 617,434 | 673,554 | 1,219,600 | 1,308,680 |
Segment operating income | 67,845 | 60,355 | 121,627 | 100,080 |
FCD | ||||
Summarized financial information of the reportable segments | ||||
Sales | 280,744 | 251,458 | 535,886 | 509,846 |
Intersegment sales | 416 | 828 | 1,096 | 1,825 |
FCD | Operating Segments | ||||
Summarized financial information of the reportable segments | ||||
Sales | 280,744 | 251,458 | 535,886 | 509,846 |
Segment operating income | $ 37,229 | $ 26,227 | $ 61,942 | $ 43,408 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Components of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||||||
Beginning balance | $ (610,076) | $ (648,044) | $ (668,894) | $ (603,648) | $ (579,196) | $ (579,196) | $ (579,196) | ||||
Other comprehensive income (loss) before reclassifications | 13,300 | 18,299 | 4,130 | (73,799) | |||||||
Amounts reclassified from AOCL | 2,772 | 2,551 | 5,514 | 4,951 | |||||||
Other comprehensive income (loss) | 16,072 | $ 25,665 | 18,620 | 20,850 | 9,644 | (68,848) | (50,226) | (24,562) | |||
Ending balance | (594,004) | (603,648) | (648,044) | (594,004) | (648,044) | (603,648) | |||||
Foreign currency translation items | |||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||||||
Beginning balance | (467,326) | (518,377) | (537,425) | (456,437) | (441,364) | (441,364) | (441,364) | ||||
Other comprehensive income (loss) before reclassifications | 13,998 | 19,048 | 3,109 | (77,013) | |||||||
Amounts reclassified from AOCL | 0 | 0 | 0 | 0 | |||||||
Other comprehensive income (loss) | 13,998 | 19,048 | 3,109 | (77,013) | |||||||
Ending balance | (453,328) | (456,437) | (518,377) | (453,328) | (518,377) | (456,437) | |||||
Pension and other post-retirement effects | |||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||||||
Beginning balance | (142,464) | (129,094) | (130,852) | (146,723) | (137,161) | (137,161) | (137,161) | ||||
Other comprehensive income (loss) before reclassifications | (713) | (793) | 804 | 3,116 | |||||||
Amounts reclassified from AOCL | 2,772 | 2,551 | 5,514 | 4,951 | |||||||
Other comprehensive income (loss) | 2,059 | 1,758 | 6,318 | 8,067 | |||||||
Ending balance | (140,405) | (146,723) | (129,094) | (140,405) | (129,094) | (146,723) | |||||
Cash flow hedging activity | |||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||||||
Beginning balance | (286) | $ (573) | (617) | (488) | (671) | $ (671) | (671) | ||||
Other comprehensive income (loss) before reclassifications | 15 | 44 | 217 | 98 | |||||||
Amounts reclassified from AOCL | 0 | 0 | 0 | 0 | |||||||
Other comprehensive income (loss) | 15 | 44 | 217 | 98 | |||||||
Ending balance | (271) | (488) | (573) | (271) | (573) | (488) | |||||
Non- controlling Interests | |||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||||||||
Other comprehensive income (loss) | 14 | (63) | 162 | 776 | |||||||
Accumulated other comprehensive income (loss), foreign currency translation adjustment, net of tax | $ (6,100) | $ 5,900 | $ 5,900 | $ (6,100) | $ 5,900 | $ 5,900 | $ 6,100 | $ 5,900 | $ 5,100 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Reclassifications out of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net of tax | $ (2,772) | $ (2,551) | $ (5,514) | $ (4,951) |
Amortization of actuarial losses | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification | (3,089) | (2,857) | (6,148) | (5,514) |
Prior service costs | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Reclassification | (155) | (138) | (308) | (279) |
Pension and other post-retirement effects | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Tax benefit | 472 | 444 | 942 | 842 |
Net of tax | $ (2,772) | $ (2,551) | $ (5,514) | $ (4,951) |
Realignment Programs (Details)
Realignment Programs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 15 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | $ 2,854 | $ 11,612 | $ 7,171 | $ 13,286 | |
Non-Restructuring Charges | 2,762 | 43,969 | 12,146 | 51,600 | |
Total Realignment Charges | 5,616 | 61,199 | 19,317 | 76,147 | |
Total Realignment Program Charges | 55,581 | 64,886 | |||
Transformation Charges | 5,618 | 11,261 | |||
Restructuring Reserve [Roll Forward] | |||||
Beginning Balance | 18,255 | 6,703 | |||
Charges, net of adjustments | 2,854 | 11,612 | 7,171 | 13,286 | |
Cash expenditures | (14,388) | (2,713) | |||
Other non-cash adjustments, including currency | (461) | (118) | |||
Ending Balance | 9,236 | 16,142 | 9,236 | 16,142 | $ 9,236 |
Subtotal–Reportable Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 2,854 | 11,612 | 7,171 | 13,286 | |
Non-Restructuring Charges | 1,847 | 28,569 | 7,361 | 35,555 | |
Total Realignment Charges | 4,701 | 40,181 | 14,532 | 48,841 | |
Total Realignment Program Charges | 40,181 | 48,841 | |||
Transformation Charges | 0 | 0 | |||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 2,854 | 11,612 | 7,171 | 13,286 | |
Eliminations and All Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0 | 0 | 0 | 0 | |
Non-Restructuring Charges | 915 | 15,400 | 4,785 | 16,045 | |
Total Realignment Charges | 915 | 21,018 | 4,785 | 27,306 | |
Total Realignment Program Charges | 15,400 | 16,045 | |||
Transformation Charges | 5,618 | 11,261 | |||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 0 | 0 | 0 | 0 | |
Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 14 | 10,698 | 1,387 | 12,520 | |
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 14 | 10,698 | 1,387 | 12,520 | |
Contract Termination | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0 | 0 | 0 | 0 | |
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 0 | 0 | 0 | 0 | |
Asset Write-Downs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | (849) | 997 | 1,341 | 991 | |
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | (849) | 997 | 1,341 | 991 | |
Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 3,689 | (83) | 4,443 | (225) | |
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 3,689 | (83) | 4,443 | (225) | |
Charges Expected to be Settled in Cash | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 5,830 | 12,270 | |||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 5,830 | 12,270 | |||
Cost of Sales | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 2,187 | 11,483 | 6,513 | 13,059 | |
Non-Restructuring Charges | 1,638 | 15,468 | 6,717 | 21,918 | |
Total Realignment Charges | 3,825 | 26,951 | 13,230 | 34,977 | |
Total Realignment Program Charges | 26,951 | 34,977 | |||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 2,187 | 11,483 | 6,513 | 13,059 | |
Cost of Sales | Subtotal–Reportable Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 2,187 | 11,483 | 6,513 | 13,059 | |
Non-Restructuring Charges | 1,638 | 14,920 | 6,127 | 21,370 | |
Total Realignment Charges | 3,825 | 26,403 | 12,640 | 34,429 | |
Total Realignment Program Charges | 26,403 | 34,429 | |||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 2,187 | 11,483 | 6,513 | 13,059 | |
Cost of Sales | Eliminations and All Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0 | 0 | 0 | 0 | |
Non-Restructuring Charges | 0 | 548 | 590 | 548 | |
Total Realignment Charges | 0 | 548 | 590 | 548 | |
Total Realignment Program Charges | 548 | 548 | |||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 0 | 0 | 0 | 0 | |
Cost of Sales | Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | (154) | 10,572 | 1,219 | 12,255 | |
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | (154) | 10,572 | 1,219 | 12,255 | |
Cost of Sales | Contract Termination | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0 | 0 | 0 | 0 | |
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 0 | 0 | 0 | 0 | |
Cost of Sales | Asset Write-Downs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | (849) | 994 | 1,341 | 991 | |
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | (849) | 994 | 1,341 | 991 | |
Cost of Sales | Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 3,190 | (83) | 3,953 | (187) | |
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 3,190 | (83) | 3,953 | (187) | |
Selling, General and Administrative Expenses | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 667 | 129 | 658 | 227 | |
Non-Restructuring Charges | 1,124 | 28,501 | 5,429 | 29,682 | |
Total Realignment Charges | 1,791 | 34,248 | 6,087 | 41,170 | |
Total Realignment Program Charges | 28,630 | 29,909 | |||
Transformation Charges | 5,618 | 11,261 | |||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 667 | 129 | 658 | 227 | |
Selling, General and Administrative Expenses | Subtotal–Reportable Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 667 | 129 | 658 | 227 | |
Non-Restructuring Charges | 209 | 13,649 | 1,234 | 14,185 | |
Total Realignment Charges | 876 | 13,778 | 1,892 | 14,412 | |
Total Realignment Program Charges | 13,778 | 14,412 | |||
Transformation Charges | 0 | 0 | |||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 667 | 129 | 658 | 227 | |
Selling, General and Administrative Expenses | Eliminations and All Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0 | 0 | 0 | 0 | |
Non-Restructuring Charges | 915 | 14,852 | 4,195 | 15,497 | |
Total Realignment Charges | 915 | 20,470 | 4,195 | 26,758 | |
Total Realignment Program Charges | 14,852 | 15,497 | |||
Transformation Charges | 5,618 | 11,261 | |||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 0 | 0 | 0 | 0 | |
Selling, General and Administrative Expenses | Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 168 | 126 | 168 | 265 | |
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 168 | 126 | 168 | 265 | |
Selling, General and Administrative Expenses | Contract Termination | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0 | 0 | 0 | ||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 0 | 0 | 0 | ||
Selling, General and Administrative Expenses | Asset Write-Downs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0 | 3 | 0 | 0 | |
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 0 | 3 | 0 | 0 | |
Selling, General and Administrative Expenses | Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 499 | 0 | 490 | (38) | |
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 499 | 0 | 490 | (38) | |
FPD | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 2,683 | 11,776 | 6,710 | 13,561 | |
Non-Restructuring Charges | 1,896 | 21,319 | 5,944 | 21,929 | |
Total Realignment Charges | 4,579 | 33,095 | 12,654 | 35,490 | |
Total Realignment Program Charges | 33,095 | 35,490 | |||
Transformation Charges | 0 | 0 | |||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 2,683 | 11,776 | 6,710 | 13,561 | |
FPD | Cost of Sales | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 2,016 | 11,650 | 6,043 | 13,331 | |
Non-Restructuring Charges | 1,558 | 12,003 | 5,449 | 12,128 | |
Total Realignment Charges | 3,574 | 23,653 | 11,492 | 25,459 | |
Total Realignment Program Charges | 23,653 | 25,459 | |||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 2,016 | 11,650 | 6,043 | 13,331 | |
FPD | Selling, General and Administrative Expenses | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 667 | 126 | 667 | 230 | |
Non-Restructuring Charges | 338 | 9,316 | 495 | 9,801 | |
Total Realignment Charges | 1,005 | 9,442 | 1,162 | 10,031 | |
Total Realignment Program Charges | 9,442 | 10,031 | |||
Transformation Charges | 0 | 0 | |||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 667 | 126 | 667 | 230 | |
FCD | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 171 | (164) | 461 | (275) | |
Non-Restructuring Charges | (49) | 7,250 | 1,417 | 13,626 | |
Total Realignment Charges | 122 | 7,086 | 1,878 | 13,351 | |
Total Realignment Program Charges | 7,086 | 13,351 | |||
Transformation Charges | 0 | 0 | |||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 171 | (164) | 461 | (275) | |
FCD | Cost of Sales | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 171 | (167) | 470 | (272) | |
Non-Restructuring Charges | 80 | 2,917 | 678 | 9,242 | |
Total Realignment Charges | 251 | 2,750 | 1,148 | 8,970 | |
Total Realignment Program Charges | 2,750 | 8,970 | |||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 171 | (167) | 470 | (272) | |
FCD | Selling, General and Administrative Expenses | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0 | 3 | (9) | (3) | |
Non-Restructuring Charges | (129) | 4,333 | 739 | 4,384 | |
Total Realignment Charges | (129) | 4,336 | 730 | 4,381 | |
Total Realignment Program Charges | 4,336 | 4,381 | |||
Transformation Charges | 0 | 0 | |||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 0 | $ 3 | (9) | $ (3) | |
Flowserve 2.0 Transformation | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected cost | $ 95,000 | $ 95,000 | 95,000 | ||
Restructuring Charges | 26,603 | ||||
Non-Restructuring Charges | 64,046 | ||||
Total Realignment Charges | 90,649 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 26,603 | ||||
Flowserve 2.0 Transformation | Subtotal–Reportable Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 26,603 | ||||
Non-Restructuring Charges | 41,327 | ||||
Total Realignment Charges | 67,930 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 26,603 | ||||
Flowserve 2.0 Transformation | Eliminations and All Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0 | ||||
Non-Restructuring Charges | 22,719 | ||||
Total Realignment Charges | 22,719 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 0 | ||||
Flowserve 2.0 Transformation | Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 16,715 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 16,715 | ||||
Flowserve 2.0 Transformation | Contract Termination | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 52 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 52 | ||||
Flowserve 2.0 Transformation | Asset Write-Downs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 2,767 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 2,767 | ||||
Flowserve 2.0 Transformation | Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 7,069 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 7,069 | ||||
Flowserve 2.0 Transformation | Cost of Sales | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 25,569 | ||||
Non-Restructuring Charges | 25,500 | ||||
Total Realignment Charges | 51,069 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 25,569 | ||||
Flowserve 2.0 Transformation | Cost of Sales | Subtotal–Reportable Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 25,569 | ||||
Non-Restructuring Charges | 24,858 | ||||
Total Realignment Charges | 50,427 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 25,569 | ||||
Flowserve 2.0 Transformation | Cost of Sales | Eliminations and All Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0 | ||||
Non-Restructuring Charges | 642 | ||||
Total Realignment Charges | 642 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 0 | ||||
Flowserve 2.0 Transformation | Cost of Sales | Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 16,463 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 16,463 | ||||
Flowserve 2.0 Transformation | Cost of Sales | Contract Termination | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 52 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 52 | ||||
Flowserve 2.0 Transformation | Cost of Sales | Asset Write-Downs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 2,753 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 2,753 | ||||
Flowserve 2.0 Transformation | Cost of Sales | Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 6,301 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 6,301 | ||||
Flowserve 2.0 Transformation | Selling, General and Administrative Expenses | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 1,034 | ||||
Non-Restructuring Charges | 38,546 | ||||
Total Realignment Charges | 39,580 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 1,034 | ||||
Flowserve 2.0 Transformation | Selling, General and Administrative Expenses | Subtotal–Reportable Segments | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 1,034 | ||||
Non-Restructuring Charges | 16,469 | ||||
Total Realignment Charges | 17,503 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 1,034 | ||||
Flowserve 2.0 Transformation | Selling, General and Administrative Expenses | Eliminations and All Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0 | ||||
Non-Restructuring Charges | 22,077 | ||||
Total Realignment Charges | 22,077 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 0 | ||||
Flowserve 2.0 Transformation | Selling, General and Administrative Expenses | Severance | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 252 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 252 | ||||
Flowserve 2.0 Transformation | Selling, General and Administrative Expenses | Contract Termination | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 0 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 0 | ||||
Flowserve 2.0 Transformation | Selling, General and Administrative Expenses | Asset Write-Downs | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 14 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 14 | ||||
Flowserve 2.0 Transformation | Selling, General and Administrative Expenses | Other | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 768 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 768 | ||||
Flowserve 2.0 Transformation | FPD | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 24,590 | ||||
Non-Restructuring Charges | 35,829 | ||||
Total Realignment Charges | 60,419 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 24,590 | ||||
Flowserve 2.0 Transformation | FPD | Cost of Sales | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 23,872 | ||||
Non-Restructuring Charges | 24,653 | ||||
Total Realignment Charges | 48,525 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 23,872 | ||||
Flowserve 2.0 Transformation | FPD | Selling, General and Administrative Expenses | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 718 | ||||
Non-Restructuring Charges | 11,176 | ||||
Total Realignment Charges | 11,894 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 718 | ||||
Flowserve 2.0 Transformation | FCD | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 2,013 | ||||
Non-Restructuring Charges | 5,498 | ||||
Total Realignment Charges | 7,511 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 2,013 | ||||
Flowserve 2.0 Transformation | FCD | Cost of Sales | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 1,697 | ||||
Non-Restructuring Charges | 205 | ||||
Total Realignment Charges | 1,902 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | 1,697 | ||||
Flowserve 2.0 Transformation | FCD | Selling, General and Administrative Expenses | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Charges | 316 | ||||
Non-Restructuring Charges | 5,293 | ||||
Total Realignment Charges | 5,609 | ||||
Restructuring Reserve [Roll Forward] | |||||
Charges, net of adjustments | $ 316 |
Uncategorized Items - fls-20210
Label | Element | Value |
Accounting Standards Update [Extensible List] | us-gaap_AccountingStandardsUpdateExtensibleList | us-gaap:AccountingStandardsUpdate201613Member |