10-Q 1 fls-20210930.htm 10-Q fls-20210930
0000030625FALSE2021Q312/31us-gaap:AccountingStandardsUpdate201613Member3100000306252021-01-012021-09-30xbrli:shares00000306252021-10-25iso4217:USD00000306252021-07-012021-09-3000000306252020-07-012020-09-30iso4217:USDxbrli:shares00000306252020-01-012020-09-3000000306252021-09-3000000306252020-12-310000030625us-gaap:CommonStockMember2021-06-300000030625us-gaap:AdditionalPaidInCapitalMember2021-06-300000030625us-gaap:RetainedEarningsMember2021-06-300000030625us-gaap:TreasuryStockMember2021-06-300000030625us-gaap:DeferredCompensationShareBasedPaymentsMember2021-06-300000030625us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300000030625us-gaap:NoncontrollingInterestMember2021-06-3000000306252021-06-300000030625us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300000030625us-gaap:TreasuryStockMember2021-07-012021-09-300000030625us-gaap:DeferredCompensationShareBasedPaymentsMember2021-07-012021-09-300000030625us-gaap:RetainedEarningsMember2021-07-012021-09-300000030625us-gaap:NoncontrollingInterestMember2021-07-012021-09-300000030625us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300000030625us-gaap:CommonStockMember2021-09-300000030625us-gaap:AdditionalPaidInCapitalMember2021-09-300000030625us-gaap:RetainedEarningsMember2021-09-300000030625us-gaap:TreasuryStockMember2021-09-300000030625us-gaap:DeferredCompensationShareBasedPaymentsMember2021-09-300000030625us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300000030625us-gaap:NoncontrollingInterestMember2021-09-300000030625us-gaap:CommonStockMember2020-06-300000030625us-gaap:AdditionalPaidInCapitalMember2020-06-300000030625us-gaap:RetainedEarningsMember2020-06-300000030625us-gaap:TreasuryStockMember2020-06-300000030625us-gaap:DeferredCompensationShareBasedPaymentsMember2020-06-300000030625us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300000030625us-gaap:NoncontrollingInterestMember2020-06-3000000306252020-06-300000030625us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300000030625us-gaap:TreasuryStockMember2020-07-012020-09-300000030625us-gaap:DeferredCompensationShareBasedPaymentsMember2020-07-012020-09-300000030625us-gaap:RetainedEarningsMember2020-07-012020-09-300000030625us-gaap:NoncontrollingInterestMember2020-07-012020-09-300000030625us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300000030625us-gaap:CommonStockMember2020-09-300000030625us-gaap:AdditionalPaidInCapitalMember2020-09-300000030625us-gaap:RetainedEarningsMember2020-09-300000030625us-gaap:TreasuryStockMember2020-09-300000030625us-gaap:DeferredCompensationShareBasedPaymentsMember2020-09-300000030625us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300000030625us-gaap:NoncontrollingInterestMember2020-09-3000000306252020-09-300000030625us-gaap:CommonStockMember2020-12-310000030625us-gaap:AdditionalPaidInCapitalMember2020-12-310000030625us-gaap:RetainedEarningsMember2020-12-310000030625us-gaap:TreasuryStockMember2020-12-310000030625us-gaap:DeferredCompensationShareBasedPaymentsMember2020-12-310000030625us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000030625us-gaap:NoncontrollingInterestMember2020-12-310000030625us-gaap:AdditionalPaidInCapitalMember2021-01-012021-09-300000030625us-gaap:TreasuryStockMember2021-01-012021-09-300000030625us-gaap:DeferredCompensationShareBasedPaymentsMember2021-01-012021-09-300000030625us-gaap:RetainedEarningsMember2021-01-012021-09-300000030625us-gaap:NoncontrollingInterestMember2021-01-012021-09-300000030625us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-300000030625us-gaap:CommonStockMember2019-12-310000030625us-gaap:AdditionalPaidInCapitalMember2019-12-310000030625us-gaap:RetainedEarningsMember2019-12-310000030625us-gaap:TreasuryStockMember2019-12-310000030625us-gaap:DeferredCompensationShareBasedPaymentsMember2019-12-310000030625us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-310000030625us-gaap:NoncontrollingInterestMember2019-12-3100000306252019-12-3100000306252019-01-012019-12-310000030625us-gaap:RetainedEarningsMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310000030625srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310000030625us-gaap:AdditionalPaidInCapitalMember2020-01-012020-09-300000030625us-gaap:TreasuryStockMember2020-01-012020-09-300000030625us-gaap:DeferredCompensationShareBasedPaymentsMember2020-01-012020-09-300000030625us-gaap:RetainedEarningsMember2020-01-012020-09-300000030625us-gaap:NoncontrollingInterestMember2020-01-012020-09-300000030625us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-09-300000030625fls:ForeignCurrencyTransactionsMember2020-12-310000030625srt:ScenarioPreviouslyReportedMember2020-09-300000030625fls:ForeignCurrencyTransactionsMembersrt:RestatementAdjustmentMember2020-09-300000030625srt:ScenarioPreviouslyReportedMember2020-07-012020-09-300000030625fls:ForeignCurrencyTransactionsMembersrt:RestatementAdjustmentMember2020-07-012020-09-300000030625srt:ScenarioPreviouslyReportedMember2020-01-012020-09-300000030625fls:ForeignCurrencyTransactionsMembersrt:RestatementAdjustmentMember2020-01-012020-09-300000030625srt:ScenarioPreviouslyReportedMember2020-12-310000030625fls:ForeignCurrencyTransactionsMembersrt:RestatementAdjustmentMember2020-12-310000030625srt:ScenarioPreviouslyReportedMember2020-10-012020-12-310000030625fls:ForeignCurrencyTransactionsMembersrt:RestatementAdjustmentMember2020-10-012020-12-3100000306252020-10-012020-12-310000030625srt:ScenarioPreviouslyReportedMember2020-01-012020-12-310000030625fls:ForeignCurrencyTransactionsMembersrt:RestatementAdjustmentMember2020-01-012020-12-3100000306252020-01-012020-12-310000030625srt:RestatementAdjustmentMember2020-01-012020-09-300000030625srt:RestatementAdjustmentMember2020-09-30xbrli:pure0000030625us-gaap:TransferredOverTimeMember2021-07-012021-09-300000030625us-gaap:TransferredOverTimeMember2020-07-012020-09-300000030625us-gaap:TransferredOverTimeMember2021-01-012021-09-300000030625us-gaap:TransferredOverTimeMember2020-01-012020-09-300000030625us-gaap:TransferredAtPointInTimeMember2021-07-012021-09-300000030625us-gaap:TransferredAtPointInTimeMember2020-07-012020-09-300000030625us-gaap:TransferredAtPointInTimeMember2021-01-012021-09-300000030625us-gaap:TransferredAtPointInTimeMember2020-01-012020-09-30fls:segments0000030625fls:FPDMemberfls:OriginalEquipmentMember2021-07-012021-09-300000030625fls:FlowControlDivisionMemberfls:OriginalEquipmentMember2021-07-012021-09-300000030625fls:OriginalEquipmentMember2021-07-012021-09-300000030625fls:FPDMemberfls:AftermarketEquipmentMember2021-07-012021-09-300000030625fls:FlowControlDivisionMemberfls:AftermarketEquipmentMember2021-07-012021-09-300000030625fls:AftermarketEquipmentMember2021-07-012021-09-300000030625fls:FPDMember2021-07-012021-09-300000030625fls:FlowControlDivisionMember2021-07-012021-09-300000030625fls:FPDMemberfls:OriginalEquipmentMember2020-07-012020-09-300000030625fls:FlowControlDivisionMemberfls:OriginalEquipmentMember2020-07-012020-09-300000030625fls:OriginalEquipmentMember2020-07-012020-09-300000030625fls:FPDMemberfls:AftermarketEquipmentMember2020-07-012020-09-300000030625fls:FlowControlDivisionMemberfls:AftermarketEquipmentMember2020-07-012020-09-300000030625fls:AftermarketEquipmentMember2020-07-012020-09-300000030625fls:FPDMember2020-07-012020-09-300000030625fls:FlowControlDivisionMember2020-07-012020-09-300000030625fls:FPDMemberfls:OriginalEquipmentMember2021-01-012021-09-300000030625fls:FlowControlDivisionMemberfls:OriginalEquipmentMember2021-01-012021-09-300000030625fls:OriginalEquipmentMember2021-01-012021-09-300000030625fls:FPDMemberfls:AftermarketEquipmentMember2021-01-012021-09-300000030625fls:FlowControlDivisionMemberfls:AftermarketEquipmentMember2021-01-012021-09-300000030625fls:AftermarketEquipmentMember2021-01-012021-09-300000030625fls:FPDMember2021-01-012021-09-300000030625fls:FlowControlDivisionMember2021-01-012021-09-300000030625fls:FPDMemberfls:OriginalEquipmentMember2020-01-012020-09-300000030625fls:FlowControlDivisionMemberfls:OriginalEquipmentMember2020-01-012020-09-300000030625fls:OriginalEquipmentMember2020-01-012020-09-300000030625fls:FPDMemberfls:AftermarketEquipmentMember2020-01-012020-09-300000030625fls:FlowControlDivisionMemberfls:AftermarketEquipmentMember2020-01-012020-09-300000030625fls:AftermarketEquipmentMember2020-01-012020-09-300000030625fls:FPDMember2020-01-012020-09-300000030625fls:FlowControlDivisionMember2020-01-012020-09-300000030625fls:FPDMembersrt:NorthAmericaMember2021-07-012021-09-300000030625fls:FlowControlDivisionMembersrt:NorthAmericaMember2021-07-012021-09-300000030625srt:NorthAmericaMember2021-07-012021-09-300000030625fls:FPDMembersrt:LatinAmericaMember2021-07-012021-09-300000030625fls:FlowControlDivisionMembersrt:LatinAmericaMember2021-07-012021-09-300000030625srt:LatinAmericaMember2021-07-012021-09-300000030625fls:MiddleEastAndAfricaMemberfls:FPDMember2021-07-012021-09-300000030625fls:MiddleEastAndAfricaMemberfls:FlowControlDivisionMember2021-07-012021-09-300000030625fls:MiddleEastAndAfricaMember2021-07-012021-09-300000030625fls:FPDMembersrt:AsiaPacificMember2021-07-012021-09-300000030625fls:FlowControlDivisionMembersrt:AsiaPacificMember2021-07-012021-09-300000030625srt:AsiaPacificMember2021-07-012021-09-300000030625fls:FPDMembersrt:EuropeMember2021-07-012021-09-300000030625fls:FlowControlDivisionMembersrt:EuropeMember2021-07-012021-09-300000030625srt:EuropeMember2021-07-012021-09-300000030625fls:FPDMembersrt:NorthAmericaMember2020-07-012020-09-300000030625fls:FlowControlDivisionMembersrt:NorthAmericaMember2020-07-012020-09-300000030625srt:NorthAmericaMember2020-07-012020-09-300000030625fls:FPDMembersrt:LatinAmericaMember2020-07-012020-09-300000030625fls:FlowControlDivisionMembersrt:LatinAmericaMember2020-07-012020-09-300000030625srt:LatinAmericaMember2020-07-012020-09-300000030625fls:MiddleEastAndAfricaMemberfls:FPDMember2020-07-012020-09-300000030625fls:MiddleEastAndAfricaMemberfls:FlowControlDivisionMember2020-07-012020-09-300000030625fls:MiddleEastAndAfricaMember2020-07-012020-09-300000030625fls:FPDMembersrt:AsiaPacificMember2020-07-012020-09-300000030625fls:FlowControlDivisionMembersrt:AsiaPacificMember2020-07-012020-09-300000030625srt:AsiaPacificMember2020-07-012020-09-300000030625fls:FPDMembersrt:EuropeMember2020-07-012020-09-300000030625fls:FlowControlDivisionMembersrt:EuropeMember2020-07-012020-09-300000030625srt:EuropeMember2020-07-012020-09-300000030625fls:FPDMembersrt:NorthAmericaMember2021-01-012021-09-300000030625fls:FlowControlDivisionMembersrt:NorthAmericaMember2021-01-012021-09-300000030625srt:NorthAmericaMember2021-01-012021-09-300000030625fls:FPDMembersrt:LatinAmericaMember2021-01-012021-09-300000030625fls:FlowControlDivisionMembersrt:LatinAmericaMember2021-01-012021-09-300000030625srt:LatinAmericaMember2021-01-012021-09-300000030625fls:MiddleEastAndAfricaMemberfls:FPDMember2021-01-012021-09-300000030625fls:MiddleEastAndAfricaMemberfls:FlowControlDivisionMember2021-01-012021-09-300000030625fls:MiddleEastAndAfricaMember2021-01-012021-09-300000030625fls:FPDMembersrt:AsiaPacificMember2021-01-012021-09-300000030625fls:FlowControlDivisionMembersrt:AsiaPacificMember2021-01-012021-09-300000030625srt:AsiaPacificMember2021-01-012021-09-300000030625fls:FPDMembersrt:EuropeMember2021-01-012021-09-300000030625fls:FlowControlDivisionMembersrt:EuropeMember2021-01-012021-09-300000030625srt:EuropeMember2021-01-012021-09-300000030625fls:FPDMembersrt:NorthAmericaMember2020-01-012020-09-300000030625fls:FlowControlDivisionMembersrt:NorthAmericaMember2020-01-012020-09-300000030625srt:NorthAmericaMember2020-01-012020-09-300000030625fls:FPDMembersrt:LatinAmericaMember2020-01-012020-09-300000030625fls:FlowControlDivisionMembersrt:LatinAmericaMember2020-01-012020-09-300000030625srt:LatinAmericaMember2020-01-012020-09-300000030625fls:MiddleEastAndAfricaMemberfls:FPDMember2020-01-012020-09-300000030625fls:MiddleEastAndAfricaMemberfls:FlowControlDivisionMember2020-01-012020-09-300000030625fls:MiddleEastAndAfricaMember2020-01-012020-09-300000030625fls:FPDMembersrt:AsiaPacificMember2020-01-012020-09-300000030625fls:FlowControlDivisionMembersrt:AsiaPacificMember2020-01-012020-09-300000030625srt:AsiaPacificMember2020-01-012020-09-300000030625fls:FPDMembersrt:EuropeMember2020-01-012020-09-300000030625fls:FlowControlDivisionMembersrt:EuropeMember2020-01-012020-09-300000030625srt:EuropeMember2020-01-012020-09-3000000306252021-10-012021-09-3000000306252022-10-012021-09-300000030625us-gaap:ShortTermContractWithCustomerMember2020-12-310000030625us-gaap:LongTermContractWithCustomerMember2020-12-310000030625fls:ShorttermContractwithCustomerLiabilityMember2020-12-310000030625fls:LongtermContractWithCustomerLiabilityMember2020-12-310000030625us-gaap:ShortTermContractWithCustomerMember2021-01-012021-09-300000030625us-gaap:LongTermContractWithCustomerMember2021-01-012021-09-300000030625fls:ShorttermContractwithCustomerLiabilityMember2021-01-012021-09-300000030625fls:LongtermContractWithCustomerLiabilityMember2021-01-012021-09-300000030625us-gaap:LongTermContractWithCustomerMember2021-09-300000030625fls:LongtermContractWithCustomerLiabilityMember2021-09-300000030625us-gaap:ShortTermContractWithCustomerMember2019-12-310000030625us-gaap:LongTermContractWithCustomerMember2019-12-310000030625fls:ShorttermContractwithCustomerLiabilityMember2019-12-310000030625fls:LongtermContractWithCustomerLiabilityMember2019-12-310000030625us-gaap:ShortTermContractWithCustomerMember2020-01-012020-09-300000030625us-gaap:LongTermContractWithCustomerMember2020-01-012020-09-300000030625fls:ShorttermContractwithCustomerLiabilityMember2020-01-012020-09-300000030625fls:LongtermContractWithCustomerLiabilityMember2020-01-012020-09-300000030625us-gaap:LongTermContractWithCustomerMember2020-09-300000030625fls:LongtermContractWithCustomerLiabilityMember2020-09-300000030625srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-12-310000030625fls:Plan2020Member2020-01-010000030625us-gaap:RestrictedStockMember2021-01-012021-09-300000030625us-gaap:RestrictedStockMember2021-09-300000030625us-gaap:RestrictedStockMember2020-12-310000030625us-gaap:RestrictedStockMember2021-07-012021-09-300000030625us-gaap:RestrictedStockMember2020-07-012020-09-300000030625us-gaap:RestrictedStockMember2020-01-012020-09-300000030625us-gaap:PerformanceSharesMember2021-09-300000030625fls:IssueDate2019And2020Memberus-gaap:PerformanceSharesMembersrt:MinimumMember2021-01-012021-09-300000030625fls:IssueDate2019And2020Memberus-gaap:PerformanceSharesMembersrt:MaximumMember2021-01-012021-09-300000030625fls:IssuedIn2021Memberus-gaap:PerformanceSharesMembersrt:MaximumMember2021-01-012021-09-300000030625us-gaap:PerformanceSharesMember2021-01-012021-09-300000030625us-gaap:PerformanceSharesMembersrt:MinimumMember2021-09-300000030625us-gaap:PerformanceSharesMembersrt:MaximumMember2021-09-300000030625us-gaap:ForeignExchangeForwardMemberus-gaap:NondesignatedMember2021-09-300000030625us-gaap:ForeignExchangeForwardMemberus-gaap:NondesignatedMember2020-12-310000030625us-gaap:ForeignExchangeForwardMemberus-gaap:NondesignatedMember2021-01-012021-09-300000030625us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2021-09-300000030625us-gaap:ForeignExchangeContractMemberus-gaap:NondesignatedMember2020-12-310000030625us-gaap:ForwardContractsMember2021-07-012021-09-300000030625us-gaap:ForwardContractsMember2020-07-012020-09-300000030625us-gaap:ForwardContractsMember2021-01-012021-09-300000030625us-gaap:ForwardContractsMember2020-01-012020-09-30iso4217:EUR0000030625us-gaap:CurrencySwapMember2021-09-300000030625us-gaap:CurrencySwapMemberus-gaap:NetInvestmentHedgingMemberus-gaap:FairValueInputsLevel2Member2021-09-300000030625us-gaap:CurrencySwapMemberus-gaap:NetInvestmentHedgingMemberus-gaap:FairValueInputsLevel2Member2020-12-310000030625us-gaap:CurrencySwapMember2021-07-012021-09-300000030625us-gaap:CurrencySwapMember2021-01-012021-09-300000030625us-gaap:CurrencySwapMemberus-gaap:NetInvestmentHedgingMember2021-07-012021-09-300000030625us-gaap:CurrencySwapMemberus-gaap:NetInvestmentHedgingMember2020-07-012020-09-300000030625us-gaap:CurrencySwapMemberus-gaap:NetInvestmentHedgingMember2021-01-012021-09-300000030625us-gaap:CurrencySwapMemberus-gaap:NetInvestmentHedgingMember2020-01-012020-09-300000030625fls:A2022EURSeniornotesMember2015-03-310000030625fls:A2022EURSeniornotesMember2021-09-300000030625fls:A2022EURSeniornotesMember2020-09-220000030625us-gaap:NetInvestmentHedgingMember2021-07-012021-09-300000030625us-gaap:NetInvestmentHedgingMember2020-07-012020-09-300000030625us-gaap:NetInvestmentHedgingMember2021-01-012021-09-300000030625us-gaap:NetInvestmentHedgingMember2020-01-012020-09-300000030625fls:A2022EURSeniornotesMember2020-12-310000030625fls:A2022SeniornotesMember2020-12-310000030625fls:A2022SeniornotesMember2021-09-300000030625fls:A2023SeniornotesMember2021-09-300000030625fls:A2023SeniornotesMember2020-12-310000030625fls:A2030USDSeniorNotesMember2021-09-300000030625fls:A2030USDSeniorNotesMember2020-12-310000030625fls:USDSeniorNotesDue2032Member2021-09-300000030625fls:USDSeniorNotesDue2032Member2020-12-310000030625fls:TermLoanFacilityMember2021-09-300000030625fls:TermLoanFacilityMember2020-12-310000030625fls:USDSeniorNotesDue2032Memberus-gaap:SeniorNotesMember2021-09-230000030625fls:A2022EURSeniornotesMemberus-gaap:SeniorNotesMember2021-09-230000030625fls:A2023SeniornotesMemberus-gaap:SeniorNotesMember2021-09-230000030625us-gaap:SubsequentEventMember2021-10-012021-10-270000030625fls:A2022EURSeniornotesMember2021-03-192021-03-190000030625fls:A2022EURSeniornotesMember2020-07-012020-09-300000030625fls:SeniorCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2021-09-130000030625fls:SeniorCreditFacilityMemberus-gaap:LetterOfCreditMember2021-09-130000030625fls:SeniorCreditFacilityMemberus-gaap:BridgeLoanMember2021-09-130000030625fls:TermLoanFacilityMember2021-09-130000030625fls:SeniorCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2021-07-012021-09-300000030625fls:SeniorCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:MinimumMemberus-gaap:RevolvingCreditFacilityMember2021-09-132021-09-130000030625fls:SeniorCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:MaximumMemberus-gaap:RevolvingCreditFacilityMember2021-09-132021-09-130000030625fls:SeniorCreditFacilityMemberus-gaap:BaseRateMembersrt:MinimumMemberus-gaap:RevolvingCreditFacilityMember2021-09-132021-09-130000030625fls:SeniorCreditFacilityMemberus-gaap:BaseRateMembersrt:MaximumMemberus-gaap:RevolvingCreditFacilityMember2021-09-132021-09-130000030625fls:SeniorCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:RevolvingCreditFacilityMember2021-01-012021-09-300000030625fls:SeniorCreditFacilityMemberus-gaap:BaseRateMemberus-gaap:RevolvingCreditFacilityMember2021-01-012021-09-300000030625fls:SeniorCreditFacilityMembersrt:MinimumMemberus-gaap:RevolvingCreditFacilityMember2021-09-132021-09-130000030625fls:SeniorCreditFacilityMembersrt:MaximumMemberus-gaap:RevolvingCreditFacilityMember2021-09-132021-09-130000030625fls:SeniorCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2021-01-012021-09-300000030625fls:TermLoanFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:MinimumMember2021-09-132021-09-130000030625fls:TermLoanFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:MaximumMember2021-09-132021-09-130000030625fls:TermLoanFacilityMemberus-gaap:BaseRateMembersrt:MinimumMember2021-09-132021-09-130000030625fls:TermLoanFacilityMemberus-gaap:BaseRateMembersrt:MaximumMember2021-09-132021-09-130000030625fls:SeniorCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2020-12-310000030625fls:SeniorCreditFacilityMemberus-gaap:RevolvingCreditFacilityMember2021-09-300000030625fls:SeniorCreditFacilityMemberus-gaap:LetterOfCreditMember2021-09-300000030625fls:SeniorCreditFacilityMemberus-gaap:LetterOfCreditMember2020-12-310000030625fls:TermLoanFacilityMembersrt:ScenarioForecastMember2021-10-012022-09-300000030625us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-09-30fls:claim0000030625us-gaap:DomesticPlanMember2021-07-012021-09-300000030625us-gaap:DomesticPlanMember2020-07-012020-09-300000030625us-gaap:ForeignPlanMember2021-07-012021-09-300000030625us-gaap:ForeignPlanMember2020-07-012020-09-300000030625us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-07-012021-09-300000030625us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-07-012020-09-300000030625us-gaap:DomesticPlanMember2021-01-012021-09-300000030625us-gaap:DomesticPlanMember2020-01-012020-09-300000030625us-gaap:ForeignPlanMember2021-01-012021-09-300000030625us-gaap:ForeignPlanMember2020-01-012020-09-300000030625us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-01-012021-09-300000030625us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2020-01-012020-09-300000030625fls:Sharerepurchaseprogram2014Member2014-12-310000030625us-gaap:OperatingSegmentsMemberfls:FPDMember2021-07-012021-09-300000030625us-gaap:OperatingSegmentsMemberfls:FlowControlDivisionMember2021-07-012021-09-300000030625us-gaap:OperatingSegmentsMember2021-07-012021-09-300000030625us-gaap:IntersegmentEliminationMember2021-07-012021-09-300000030625us-gaap:OperatingSegmentsMemberfls:FPDMember2020-07-012020-09-300000030625us-gaap:OperatingSegmentsMemberfls:FlowControlDivisionMember2020-07-012020-09-300000030625us-gaap:OperatingSegmentsMember2020-07-012020-09-300000030625us-gaap:IntersegmentEliminationMember2020-07-012020-09-300000030625us-gaap:OperatingSegmentsMemberfls:FPDMember2021-01-012021-09-300000030625us-gaap:OperatingSegmentsMemberfls:FlowControlDivisionMember2021-01-012021-09-300000030625us-gaap:OperatingSegmentsMember2021-01-012021-09-300000030625us-gaap:IntersegmentEliminationMember2021-01-012021-09-300000030625us-gaap:OperatingSegmentsMemberfls:FPDMember2020-01-012020-09-300000030625us-gaap:OperatingSegmentsMemberfls:FlowControlDivisionMember2020-01-012020-09-300000030625us-gaap:OperatingSegmentsMember2020-01-012020-09-300000030625us-gaap:IntersegmentEliminationMember2020-01-012020-09-300000030625us-gaap:AccumulatedTranslationAdjustmentMember2021-06-300000030625us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-06-300000030625us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-06-300000030625us-gaap:AccumulatedTranslationAdjustmentMember2020-06-300000030625us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-06-300000030625us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-06-300000030625us-gaap:AccumulatedTranslationAdjustmentMember2021-07-012021-09-300000030625us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-07-012021-09-300000030625us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-07-012021-09-300000030625us-gaap:AccumulatedTranslationAdjustmentMember2020-07-012020-09-300000030625us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-07-012020-09-300000030625us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-07-012020-09-300000030625us-gaap:AccumulatedTranslationAdjustmentMember2021-09-300000030625us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-09-300000030625us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-09-300000030625us-gaap:AccumulatedTranslationAdjustmentMember2020-09-300000030625us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-09-300000030625us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-09-300000030625us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2021-07-012021-09-300000030625us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2020-07-012020-09-300000030625us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember2021-07-012021-09-300000030625us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember2020-07-012020-09-300000030625us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310000030625us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-310000030625us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-12-310000030625us-gaap:AccumulatedTranslationAdjustmentMember2019-12-310000030625us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-12-310000030625us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-12-310000030625us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-09-300000030625us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-012021-09-300000030625us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-01-012021-09-300000030625us-gaap:AccumulatedTranslationAdjustmentMember2020-01-012020-09-300000030625us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-01-012020-09-300000030625us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-01-012020-09-300000030625us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2021-01-012021-09-300000030625us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetUnamortizedGainLossMember2020-01-012020-09-300000030625us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember2021-01-012021-09-300000030625us-gaap:AccumulatedDefinedBenefitPlansAdjustmentNetPriorServiceCostCreditMember2020-01-012020-09-300000030625fls:RealignmentPrograms2020Member2021-09-300000030625us-gaap:CostOfSalesMemberfls:FPDMember2021-07-012021-09-300000030625us-gaap:CostOfSalesMemberfls:FlowControlDivisionMember2021-07-012021-09-300000030625us-gaap:OperatingSegmentsMemberus-gaap:CostOfSalesMember2021-07-012021-09-300000030625us-gaap:IntersegmentEliminationMemberus-gaap:CostOfSalesMember2021-07-012021-09-300000030625us-gaap:CostOfSalesMember2021-07-012021-09-300000030625fls:FPDMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-07-012021-09-300000030625fls:FlowControlDivisionMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-07-012021-09-300000030625us-gaap:OperatingSegmentsMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-07-012021-09-300000030625us-gaap:IntersegmentEliminationMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-07-012021-09-300000030625us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-07-012021-09-300000030625us-gaap:CostOfSalesMemberfls:FPDMember2020-07-012020-09-300000030625us-gaap:CostOfSalesMemberfls:FlowControlDivisionMember2020-07-012020-09-300000030625us-gaap:OperatingSegmentsMemberus-gaap:CostOfSalesMember2020-07-012020-09-300000030625us-gaap:IntersegmentEliminationMemberus-gaap:CostOfSalesMember2020-07-012020-09-300000030625us-gaap:CostOfSalesMember2020-07-012020-09-300000030625fls:FPDMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-07-012020-09-300000030625fls:FlowControlDivisionMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-07-012020-09-300000030625us-gaap:OperatingSegmentsMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-07-012020-09-300000030625us-gaap:IntersegmentEliminationMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-07-012020-09-300000030625us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-07-012020-09-300000030625us-gaap:CostOfSalesMemberfls:FPDMember2021-01-012021-09-300000030625us-gaap:CostOfSalesMemberfls:FlowControlDivisionMember2021-01-012021-09-300000030625us-gaap:OperatingSegmentsMemberus-gaap:CostOfSalesMember2021-01-012021-09-300000030625us-gaap:IntersegmentEliminationMemberus-gaap:CostOfSalesMember2021-01-012021-09-300000030625us-gaap:CostOfSalesMember2021-01-012021-09-300000030625fls:FPDMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-09-300000030625fls:FlowControlDivisionMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-09-300000030625us-gaap:OperatingSegmentsMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-09-300000030625us-gaap:IntersegmentEliminationMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-09-300000030625us-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-09-300000030625us-gaap:CostOfSalesMemberfls:FPDMember2020-01-012020-09-300000030625us-gaap:CostOfSalesMemberfls:FlowControlDivisionMember2020-01-012020-09-300000030625us-gaap:OperatingSegmentsMemberus-gaap:CostOfSalesMember2020-01-012020-09-300000030625us-gaap:IntersegmentEliminationMemberus-gaap:CostOfSalesMember2020-01-012020-09-300000030625us-gaap:CostOfSalesMember2020-01-012020-09-300000030625fls:FPDMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-01-012020-09-300000030625fls:FlowControlDivisionMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-01-012020-09-300000030625us-gaap:OperatingSegmentsMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-01-012020-09-300000030625us-gaap:IntersegmentEliminationMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-01-012020-09-300000030625us-gaap:SellingGeneralAndAdministrativeExpensesMember2020-01-012020-09-300000030625fls:RealignmentPrograms2020Memberus-gaap:CostOfSalesMemberfls:FPDMember2020-04-012021-09-300000030625fls:RealignmentPrograms2020Memberus-gaap:CostOfSalesMemberfls:FlowControlDivisionMember2020-04-012021-09-300000030625fls:RealignmentPrograms2020Memberus-gaap:OperatingSegmentsMemberus-gaap:CostOfSalesMember2020-04-012021-09-300000030625fls:RealignmentPrograms2020Memberus-gaap:IntersegmentEliminationMemberus-gaap:CostOfSalesMember2020-04-012021-09-300000030625fls:RealignmentPrograms2020Memberus-gaap:CostOfSalesMember2020-04-012021-09-300000030625fls:RealignmentPrograms2020Memberfls:FPDMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-04-012021-09-300000030625fls:RealignmentPrograms2020Memberfls:FlowControlDivisionMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-04-012021-09-300000030625fls:RealignmentPrograms2020Memberus-gaap:OperatingSegmentsMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-04-012021-09-300000030625fls:RealignmentPrograms2020Memberus-gaap:IntersegmentEliminationMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-04-012021-09-300000030625fls:RealignmentPrograms2020Memberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-04-012021-09-300000030625fls:RealignmentPrograms2020Memberfls:FPDMember2020-04-012021-09-300000030625fls:RealignmentPrograms2020Memberfls:FlowControlDivisionMember2020-04-012021-09-300000030625fls:RealignmentPrograms2020Memberus-gaap:OperatingSegmentsMember2020-04-012021-09-300000030625fls:RealignmentPrograms2020Memberus-gaap:IntersegmentEliminationMember2020-04-012021-09-300000030625fls:RealignmentPrograms2020Member2020-04-012021-09-300000030625us-gaap:CostOfSalesMemberus-gaap:EmployeeSeveranceMember2021-07-012021-09-300000030625us-gaap:CostOfSalesMemberus-gaap:ContractTerminationMember2021-07-012021-09-300000030625us-gaap:CostOfSalesMemberfls:AssetWriteDownsMember2021-07-012021-09-300000030625us-gaap:OtherExpenseMemberus-gaap:CostOfSalesMember2021-07-012021-09-300000030625us-gaap:EmployeeSeveranceMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-07-012021-09-300000030625us-gaap:ContractTerminationMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-07-012021-09-300000030625fls:AssetWriteDownsMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-07-012021-09-300000030625us-gaap:OtherExpenseMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-07-012021-09-300000030625us-gaap:EmployeeSeveranceMember2021-07-012021-09-300000030625us-gaap:ContractTerminationMember2021-07-012021-09-300000030625fls:AssetWriteDownsMember2021-07-012021-09-300000030625us-gaap:OtherExpenseMember2021-07-012021-09-300000030625us-gaap:CostOfSalesMemberus-gaap:EmployeeSeveranceMember2020-07-012020-09-300000030625us-gaap:CostOfSalesMemberus-gaap:ContractTerminationMember2020-07-012020-09-300000030625us-gaap:CostOfSalesMemberfls:AssetWriteDownsMember2020-07-012020-09-300000030625us-gaap:OtherExpenseMemberus-gaap:CostOfSalesMember2020-07-012020-09-300000030625us-gaap:EmployeeSeveranceMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-07-012020-09-300000030625us-gaap:ContractTerminationMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-07-012020-09-300000030625fls:AssetWriteDownsMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-07-012020-09-300000030625us-gaap:OtherExpenseMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-07-012020-09-300000030625us-gaap:EmployeeSeveranceMember2020-07-012020-09-300000030625us-gaap:ContractTerminationMember2020-07-012020-09-300000030625fls:AssetWriteDownsMember2020-07-012020-09-300000030625us-gaap:OtherExpenseMember2020-07-012020-09-300000030625us-gaap:CostOfSalesMemberus-gaap:EmployeeSeveranceMember2021-01-012021-09-300000030625us-gaap:CostOfSalesMemberus-gaap:ContractTerminationMember2021-01-012021-09-300000030625us-gaap:CostOfSalesMemberfls:AssetWriteDownsMember2021-01-012021-09-300000030625us-gaap:OtherExpenseMemberus-gaap:CostOfSalesMember2021-01-012021-09-300000030625us-gaap:EmployeeSeveranceMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-09-300000030625us-gaap:ContractTerminationMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-09-300000030625fls:AssetWriteDownsMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-09-300000030625us-gaap:OtherExpenseMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2021-01-012021-09-300000030625us-gaap:EmployeeSeveranceMember2021-01-012021-09-300000030625us-gaap:ContractTerminationMember2021-01-012021-09-300000030625fls:AssetWriteDownsMember2021-01-012021-09-300000030625us-gaap:OtherExpenseMember2021-01-012021-09-300000030625us-gaap:CostOfSalesMemberus-gaap:EmployeeSeveranceMember2020-01-012020-09-300000030625us-gaap:CostOfSalesMemberus-gaap:ContractTerminationMember2020-01-012020-09-300000030625us-gaap:CostOfSalesMemberfls:AssetWriteDownsMember2020-01-012020-09-300000030625us-gaap:OtherExpenseMemberus-gaap:CostOfSalesMember2020-01-012020-09-300000030625us-gaap:EmployeeSeveranceMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-01-012020-09-300000030625us-gaap:ContractTerminationMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-01-012020-09-300000030625fls:AssetWriteDownsMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-01-012020-09-300000030625us-gaap:OtherExpenseMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-01-012020-09-300000030625us-gaap:EmployeeSeveranceMember2020-01-012020-09-300000030625us-gaap:ContractTerminationMember2020-01-012020-09-300000030625fls:AssetWriteDownsMember2020-01-012020-09-300000030625us-gaap:OtherExpenseMember2020-01-012020-09-300000030625fls:RealignmentPrograms2020Memberus-gaap:CostOfSalesMemberus-gaap:EmployeeSeveranceMember2020-04-012021-09-300000030625fls:RealignmentPrograms2020Memberus-gaap:CostOfSalesMemberus-gaap:ContractTerminationMember2020-04-012021-09-300000030625fls:RealignmentPrograms2020Memberus-gaap:CostOfSalesMemberfls:AssetWriteDownsMember2020-04-012021-09-300000030625us-gaap:OtherExpenseMemberfls:RealignmentPrograms2020Memberus-gaap:CostOfSalesMember2020-04-012021-09-300000030625fls:RealignmentPrograms2020Memberus-gaap:EmployeeSeveranceMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-04-012021-09-300000030625fls:RealignmentPrograms2020Memberus-gaap:ContractTerminationMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-04-012021-09-300000030625fls:RealignmentPrograms2020Memberfls:AssetWriteDownsMemberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-04-012021-09-300000030625us-gaap:OtherExpenseMemberfls:RealignmentPrograms2020Memberus-gaap:SellingGeneralAndAdministrativeExpensesMember2020-04-012021-09-300000030625fls:RealignmentPrograms2020Memberus-gaap:EmployeeSeveranceMember2020-04-012021-09-300000030625fls:RealignmentPrograms2020Memberus-gaap:ContractTerminationMember2020-04-012021-09-300000030625fls:RealignmentPrograms2020Memberfls:AssetWriteDownsMember2020-04-012021-09-300000030625us-gaap:OtherExpenseMemberfls:RealignmentPrograms2020Member2020-04-012021-09-300000030625fls:ChargesExpectedtobeSettledinCashMember2021-01-012021-09-300000030625fls:ChargesExpectedtobeSettledinCashMember2020-01-012020-09-30


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q
(Mark One)
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM           to          .
Commission File No. 1-13179
FLOWSERVE CORPORATION
(Exact name of registrant as specified in its charter)
fls-20210930_g1.gif
New York 31-0267900
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
5215 N. O’Connor Blvd., Suite 700,Irving, Texas75039
(Address of principal executive offices) 
 
 (Zip Code)
( 972 ) 443-6500
(Registrant’s telephone number, including area code)
Former name, former address and former fiscal year, if changed since last report: N/A
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol
Name of Each Exchange on Which Registered
Common Stock, $1.25 Par ValueFLSNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ¨ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ¨ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filerNon-accelerated filer
Smaller reporting companyEmerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
As of October 25, 2021 there were 130,267,675 shares of the issuer’s common stock outstanding.





FLOWSERVE CORPORATION
FORM 10-Q
TABLE OF CONTENTS
 Page
 No.
 



  
 
i


PART I — FINANCIAL INFORMATION
Item 1.Financial Statements.
FLOWSERVE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Amounts in thousands, except per share data)Three Months Ended September 30,
 20212020
Sales$866,118 $924,301 
Cost of sales(612,626)(639,092)
Gross profit253,492 285,209 
Selling, general and administrative expense(200,862)(200,729)
Net earnings from affiliates 4,732 2,842 
Operating income57,362 87,322 
Interest expense(14,746)(13,509)
Loss on extinguishment of debt(563)(1,201)
Interest income827 673 
Other income (expense), net(1,504)4,673 
Earnings before income taxes41,376 77,958 
(Provision for) benefit from income taxes10,433 (19,196)
Net earnings, including noncontrolling interests51,809 58,762 
Less: Net earnings attributable to noncontrolling interests(2,024)(2,647)
Net earnings attributable to Flowserve Corporation$49,785 $56,115 
Net earnings per share attributable to Flowserve Corporation common shareholders:  
Basic$0.38 $0.43 
Diluted0.38 0.43 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(Amounts in thousands)Three Months Ended September 30,
 20212020
Net earnings, including noncontrolling interests$51,809 $58,762 
Other comprehensive income (loss):  
Foreign currency translation adjustments, net of taxes of $1,274 and $140, respectively
(15,561)19,555 
Pension and other postretirement effects, net of taxes of $(471) and $(421), respectively
4,955 (976)
Cash flow hedging activity(1,347)41 
Other comprehensive income (loss)(11,953)18,620 
Comprehensive income (loss), including noncontrolling interests39,856 77,382 
Comprehensive (income) loss attributable to noncontrolling interests(2,021)(2,643)
Comprehensive income (loss) attributable to Flowserve Corporation$37,835 $74,739 

See accompanying notes to condensed consolidated financial statements.
1


FLOWSERVE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Amounts in thousands, except per share data)Nine Months Ended September 30,
 20212020
Sales$2,621,604 $2,742,826 
Cost of sales(1,838,974)(1,921,451)
Gross profit782,630 821,375 
Selling, general and administrative expense(609,965)(675,523)
Gain on sale of business
1,806  
Net earnings from affiliates 11,157 9,125 
Operating income185,628 154,977 
Interest expense(45,847)(39,407)
Loss on extinguishment of debt (8,173)(1,201)
Interest income1,893 3,571 
Other income (expense), net(20,717)23,969 
Earnings before income taxes112,784 141,909 
(Provision for) benefit from income taxes3,929 (60,650)
Net earnings, including noncontrolling interests116,713 81,259 
Less: Net earnings attributable to noncontrolling interests(7,495)(6,890)
Net earnings attributable to Flowserve Corporation$109,218 $74,369 
Net earnings per share attributable to Flowserve Corporation common shareholders:  
Basic$0.84 $0.57 
Diluted0.83 0.57 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(Amounts in thousands)Nine Months Ended September 30,
 20212020
Net earnings, including noncontrolling interests$116,713 $81,259 
Other comprehensive income (loss):  
Foreign currency translation adjustments, net of taxes of $7,021 and $6,114, respectively
(12,452)(57,456)
Pension and other postretirement effects, net of taxes of $(1,414) and $(1,263), respectively
11,273 7,091 
Cash flow hedging activity(1,130)139 
Other comprehensive income (loss) (2,309)(50,226)
Comprehensive income (loss), including noncontrolling interests114,404 31,033 
Comprehensive (income) loss attributable to noncontrolling interests(7,654)(7,662)
Comprehensive income (loss) attributable to Flowserve Corporation$106,750 $23,371 

See accompanying notes to condensed consolidated financial statements.

2


FLOWSERVE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Amounts in thousands, except par value)September 30,December 31,
20212020
ASSETS
Current assets:  
Cash and cash equivalents$1,457,269 $1,095,274 
Accounts receivable, net of allowance for expected credit losses of $75,966 and $75,176, respectively
710,782 753,462 
Contract assets, net of allowance for expected credit losses of $2,778 and $3,205, respectively
235,917 277,734 
Inventories, net698,046 667,228 
Prepaid expenses and other121,209 110,635 
Total current assets3,223,223 2,904,333 
Property, plant and equipment, net of accumulated depreciation of $1,117,487 and $1,093,348, respectively
513,168 556,873 
Operating lease right-of-use assets, net194,306 208,125 
Goodwill1,202,598 1,224,886 
Deferred taxes57,849 30,538 
Other intangible assets, net155,994 168,496 
Other assets, net of allowance for expected credit losses of $67,697 and $67,842, respectively
248,778 221,426 
Total assets$5,595,916 $5,314,677 
LIABILITIES AND EQUITY
Current liabilities:  
Accounts payable$370,977 $440,199 
Accrued liabilities468,153 463,222 
Contract liabilities199,103 194,227 
Debt due within one year836,618 8,995 
Operating lease liabilities34,034 34,990 
Total current liabilities1,908,885 1,141,633 
Long-term debt due after one year1,272,246 1,717,911 
Operating lease liabilities165,588 176,246 
Retirement obligations and other liabilities457,964 517,566 
Commitments and contingencies (See Note 11)
Shareholders’ equity:  
Common shares, $1.25 par value
220,991 220,991 
Shares authorized – 305,000
  
Shares issued – 176,793
  
Capital in excess of par value501,122 502,227 
Retained earnings3,700,507 3,670,543 
Treasury shares, at cost – 46,804 and 46,768 shares, respectively
(2,058,168)(2,059,309)
Deferred compensation obligation7,145 6,164 
Accumulated other comprehensive loss(612,093)(609,625)
Total Flowserve Corporation shareholders’ equity1,759,504 1,730,991 
Noncontrolling interests31,729 30,330 
Total equity1,791,233 1,761,321 
Total liabilities and equity$5,595,916 $5,314,677 
See accompanying notes to condensed consolidated financial statements.
3


FLOWSERVE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(Unaudited)
 Total Flowserve Corporation Shareholders’ Equity  
Capital
in Excess of Par Value
Retained EarningsDeferred Compensation ObligationAccumulated
Other Comprehensive Income (Loss)
Total Equity
 Common StockTreasury StockNon-
controlling Interests
 SharesAmountSharesAmount
 (Amounts in thousands)
Balance — July 1, 2021176,793 $220,991 $494,221 $3,677,117 (46,806)$(2,058,279)$7,077 $(600,143)$29,708 $1,770,692 
Stock activity under stock plans— — (237)— 2 111 68 — — (58)
Stock-based compensation— — 7,138 — — — — — — 7,138 
Net earnings— — — 49,785 — — — — 2,024 51,809 
Cash dividends declared— — — (26,395)— — — — — (26,395)
Other comprehensive income (loss), net of tax— — — — — — — (11,950)(3)(11,953)
Other, net— — — — — — —    
Balance — September 30, 2021176,793 $220,991 $501,122 $3,700,507 (46,804)$(2,058,168)$7,145 $(612,093)$31,729 $1,791,233 
Balance — July 1, 2020176,793 $220,991 $499,152 $3,610,470 (46,873)$(2,064,302)$6,036 $(653,916)$27,779 $1,646,210 
Stock activity under stock plans— — (5,220)— 98 4,636 64 — — (520)
Stock-based compensation— — 5,629 — — — — — — 5,629 
Net earnings— — — 56,115 — — — — 2,647 58,762 
Cash dividends declared— — — (26,357)— — — — — (26,357)
Other comprehensive income (loss), net of tax— — — — — — — 18,624 (4)18,620 
Balance — September 30, 2020176,793 $220,991 $499,561 $3,640,228 (46,775)$(2,059,666)$6,100 $(635,292)$30,422 $1,702,344 
See accompanying notes to condensed consolidated financial statements.

4


FLOWSERVE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(Unaudited)
 Total Flowserve Corporation Shareholders’ Equity  
Capital
in Excess of Par Value
Retained EarningsDeferred Compensation ObligationAccumulated
Other Comprehensive Income (Loss)
Total Equity
 Common StockTreasury StockNon-
controlling Interests
 SharesAmountSharesAmount
 (Amounts in thousands)
Balance — January 1, 2021176,793 $220,991 $502,227 $3,670,543 (46,768)$(2,059,309)$6,164 $(609,625)$30,330 $1,761,321 
Stock activity under stock plans— — (24,715)— 404 18,672 981 — — (5,062)
Stock-based compensation— — 23,610 — — — — — — 23,610 
Net earnings— — — 109,218 — — — — 7,495 116,713 
Cash dividends declared— — — (79,254)— — — — — (79,254)
Repurchases of common shares— — — — (440)(17,531)— — — (17,531)
Other comprehensive income (loss), net of tax— — — — — — — (2,468)159 (2,309)
Other, net— — — — — — — —   
Balance — September 30, 2021176,793 $220,991 $501,122 $3,700,507 (46,804)$(2,058,168)$7,145 $(612,093)$31,729 $1,791,233 
Balance — January 1, 2020176,793 $220,991 $501,045 $3,652,245 (46,262)$(2,051,583)$8,334 $(584,294)$25,602 $1,772,340 
ASU No. 2016-13 - Measurement of Credit Losses on Financial Instruments (Topic 326)
— — — (7,291)— — — — — (7,291)
Stock activity under stock plans— — (25,588)— 544 24,029 (2,234)— — (3,793)
Stock-based compensation— — 24,104 — — — — — — 24,104 
Net earnings— — — 74,369 — — — — 6,890 81,259 
Cash dividends declared— — — (79,095)— — — — — (79,095)
Repurchases of common shares— — — — (1,057)(32,112)— — — (32,112)
Other comprehensive income (loss), net of tax— — — — — — — (50,998)772 (50,226)
Other, net— — — — — — — — (2,842)(2,842)
Balance — September 30, 2020176,793 $220,991 $499,561 $3,640,228 (46,775)$(2,059,666)$6,100 $(635,292)$30,422 $1,702,344 
See accompanying notes to condensed consolidated financial statements.

5


FLOWSERVE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Amounts in thousands)Nine Months Ended September 30,
 20212020
Cash flows – Operating activities:  
Net earnings, including noncontrolling interests$116,713 $81,259 
Adjustments to reconcile net earnings to net cash provided (used) by operating activities:  
Depreciation66,316 63,887 
Amortization of intangible and other assets10,643 8,788 
Loss on extinguishment of debt8,173 1,201 
Stock-based compensation23,610 24,104 
Foreign currency, asset write downs and other non-cash adjustments 9,897 1,880 
Change in assets and liabilities:  
Accounts receivable, net24,361 24,324 
Inventories, net(47,533)(51,974)
Contract assets, net35,358 (37,328)
Prepaid expenses and other assets, net2,429 6,168 
Accounts payable(58,600)(21,756)
Contract liabilities9,379 (22,468)
Accrued liabilities and income taxes payable9,136 22,762 
Retirement obligations and other (23,842)22,729 
       Net deferred taxes (34,933)(9,325)
Net cash flows provided (used) by operating activities151,107 114,251 
Cash flows – Investing activities:  
Capital expenditures(34,034)(46,424)
Proceeds from disposal of assets2,525 13,759 
Net affiliate investment activity(7,204) 
Net cash flows provided (used) by investing activities(38,713)(32,665)
Cash flows – Financing activities:  
Payments on senior notes(407,473)(191,258)
Proceeds from issuance of senior notes498,280 498,280 
Proceeds from long-term debt300,000  
Payments of deferred loan cost(5,399)(4,572)
Proceeds under other financing arrangements1,408 603 
Payments under other financing arrangements(6,215)(7,145)
Repurchases of common shares(17,531)(32,112)
Payments related to tax withholding for stock-based compensation(5,899)(4,521)
Payments of dividends(78,551)(78,106)
Other(6,276)(2,314)
Net cash flows provided (used) by financing activities272,344 178,855 
Effect of exchange rate changes on cash(22,743)(10,243)
Net change in cash and cash equivalents361,995 250,198 
Cash and cash equivalents at beginning of period1,095,274 670,980 
Cash and cash equivalents at end of period$1,457,269 $921,178 
See accompanying notes to condensed consolidated financial statements.
6


FLOWSERVE CORPORATION
(Unaudited)
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1.Basis of Presentation and Accounting Policies

Basis of Presentation
The accompanying condensed consolidated balance sheet as of September 30, 2021, the related condensed consolidated statements of income and comprehensive income (loss) for the three and nine months ended September 30, 2021 and 2020, the condensed consolidated statements of shareholders' equity for the three and nine months ended September 30, 2021 and 2020 and the condensed consolidated statements of cash flows for the nine months ended September 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. 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 September 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. Additionally, we identified and corrected certain immaterial errors of cash flow activities on our condensed consolidated statement of cash flows for the nine month period ended September 30, 2020.
We have assessed the above described errors and concluded the effects were not material to the period ended September 30, 2020 or any previous period. The September 30, 2020 balances, as presented herein, have been revised. Additionally, the December 31, 2020 balances will be revised the next time such financial statements are filed. Refer to Note 2 for a detailed discussion related to the impact of the revision as of and for the three and nine months ended September 30, 2020 and the impact to the December 31, 2020 balances, which will be revised in future filings.
Coronavirus Pandemic ("COVID-19") and Oil and Gas Market - During the first nine 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, while we have seen customer maintenance, repair and overhaul ("MRO") and aftermarket spending return close to pre-pandemic levels, and although we are seeing momentum in project-based capital expenditures, such business 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.

7


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. 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.

2.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. Additionally, we identified and corrected certain immaterial errors of cash flow activities on our condensed consolidated statement of cash flows for the nine month period ended September 30, 2020.
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 $1,499 $543,220 
Retained earnings3,625,291 14,937 3,640,228 
Accumulated other comprehensive loss(618,856)(16,436)(635,292)
Total Flowserve Corporation shareholders’ equity1,673,421 (1,499)1,671,922 
Total equity1,703,843 (1,499)1,702,344 
_______________________________________
(1) Adjustments relate to the accounting error involving foreign currency transactions.


8


Three Months Ended September 30, 2020
(Amounts in thousands, except per share data)As ReportedAdjustments(1)As Revised
Other income (expense), net$(963)$5,636 $4,673 
Earnings before income taxes72,322 5,636 77,958 
Provision for income taxes (18,672)(524)(19,196)
Net earnings, including noncontrolling interests53,650 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 
Diluted0.39 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 ReportedAdjustments(1)As Revised
Net earnings, including noncontrolling interests$53,650 $5,112 $58,762 
Other comprehensive income (loss):
Foreign currency translation adjustments, net of taxes25,204 (5,649)19,555 
Other comprehensive income (loss)24,269 (5,649)18,620 
Comprehensive income (loss), including noncontrolling interests77,919 (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.