Company Quick10K Filing
Flowserve
Price46.84 EPS2
Shares132 P/E24
MCap6,176 P/FCF43
Net Debt803 EBIT360
TEV6,979 TEV/EBIT19
TTM 2019-09-30, in MM, except price, ratios
10-Q 2021-03-31 Filed 2021-05-03
10-K 2020-12-31 Filed 2021-02-23
10-Q 2020-09-30 Filed 2020-11-13
10-Q 2020-06-30 Filed 2020-07-30
10-Q 2020-03-31 Filed 2020-05-07
10-K 2019-12-31 Filed 2020-02-18
10-Q 2019-09-30 Filed 2019-10-30
10-Q 2019-06-30 Filed 2019-07-31
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10-K 2016-12-31 Filed 2017-02-16
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10-K 2015-12-31 Filed 2016-02-18
10-Q 2015-09-30 Filed 2015-10-29
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10-K 2014-12-31 Filed 2015-02-17
10-Q 2014-09-30 Filed 2014-10-23
10-Q 2014-06-30 Filed 2014-07-23
10-Q 2014-03-31 Filed 2014-04-23
10-K 2013-12-31 Filed 2014-02-18
10-Q 2013-09-30 Filed 2013-10-24
10-Q 2013-06-30 Filed 2013-07-24
10-Q 2013-03-31 Filed 2013-04-24
10-K 2012-12-31 Filed 2013-02-21
10-Q 2012-09-30 Filed 2012-10-29
10-Q 2012-06-30 Filed 2012-07-30
10-Q 2012-03-31 Filed 2012-04-30
10-K 2011-12-31 Filed 2012-02-22
10-Q 2011-09-30 Filed 2011-10-27
10-Q 2011-06-30 Filed 2011-07-27
10-Q 2011-03-31 Filed 2011-04-27
10-K 2010-12-31 Filed 2011-02-23
10-Q 2010-09-30 Filed 2010-10-27
10-Q 2010-06-30 Filed 2010-07-28
10-Q 2010-03-31 Filed 2010-05-05
10-K 2009-12-31 Filed 2010-02-24
8-K 2021-02-23 Earnings, Regulation FD, Exhibits
8-K 2021-02-17 Other Events
8-K 2020-11-05
8-K 2020-09-21
8-K 2020-09-14
8-K 2020-09-14
8-K 2020-09-04
8-K 2020-08-12
8-K 2020-07-31
8-K 2020-07-30
8-K 2020-06-02
8-K 2020-05-20
8-K 2020-05-11
8-K 2020-05-07
8-K 2020-04-06
8-K 2020-02-17
8-K 2020-02-06
8-K 2020-01-06
8-K 2019-12-12
8-K 2019-12-03
8-K 2019-10-30
8-K 2019-08-14
8-K 2019-07-31
8-K 2019-07-16
8-K 2019-05-23
8-K 2019-05-02
8-K 2019-04-22
8-K 2019-02-20
8-K 2018-11-13
8-K 2018-11-07
8-K 2018-10-02
8-K 2018-08-08
8-K 2018-05-24
8-K 2018-02-15
8-K 2018-01-09

FLS 10Q Quarterly Report

Part I - Financial Information
Item 1.Financial Statements.
Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 3.Quantitative and Qualitative Disclosures About Market Risk.
Item 4.Controls and Procedures.
Part II - Other Information
Item 1.Legal Proceedings.
Item 1A.Risk Factors.
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3.Defaults Upon Senior Securities.
Item 4.Mine Safety Disclosures.
Item 5.Other Information.
Item 6.Exhibits
EX-31.1 a03312021exhibit311.htm
EX-31.2 a03312021exhibit312.htm
EX-32.1 a03312021exhibit321.htm
EX-32.2 a03312021exhibit322.htm

Flowserve Earnings 2021-03-31

Balance SheetIncome StatementCash Flow
10.08.06.04.02.00.02012201420172020
Assets, Equity
1.41.10.80.40.1-0.22012201420172020
Rev, G Profit, Net Income
0.50.30.1-0.1-0.3-0.52012201420172020
Ops, Inv, Fin

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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 MARCH 31, 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-20210331_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 2300,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 April 28, 2021 there were 130,315,204 shares of the issuer’s common stock outstanding.





FLOWSERVE CORPORATION
FORM 10-Q
TABLE OF CONTENTS

 Page
 No.
 


  
 
i


Table of Contents
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 March 31,
 20212020
Sales$857,308 $893,513 
Cost of sales(606,408)(627,054)
Gross profit250,900 266,459 
Selling, general and administrative expense(198,315)(245,451)
Net earnings from affiliates 3,518 3,196 
Operating income56,103 24,204 
Interest expense(16,778)(12,963)
Loss on extinguishment of debt(7,610) 
Interest income602 1,749 
Other income (expense), net(11,364)38,202 
Earnings before income taxes20,953 51,192 
Provision for income taxes(3,792)(36,969)
Net earnings, including noncontrolling interests17,161 14,223 
Less: Net earnings attributable to noncontrolling interests(3,081)(2,100)
Net earnings attributable to Flowserve Corporation$14,080 $12,123 
Net earnings per share attributable to Flowserve Corporation common shareholders:  
Basic$0.11 $0.09 
Diluted0.11 0.09 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(Amounts in thousands)Three Months Ended March 31,
 20212020
Net earnings, including noncontrolling interests$17,161 $14,223 
Other comprehensive income (loss):  
Foreign currency translation adjustments, net of taxes of $654 and $7,162, respectively
(10,889)(96,061)
Pension and other postretirement effects, net of taxes of $(471) and $(398), respectively
4,259 6,309 
Cash flow hedging activity202 54 
Other comprehensive income (loss)(6,428)(89,698)
Comprehensive income (loss), including noncontrolling interests10,733 (75,475)
Comprehensive (income) loss attributable to noncontrolling interests(3,230)(2,939)
Comprehensive income (loss) attributable to Flowserve Corporation$7,503 $(78,414)

See accompanying notes to condensed consolidated financial statements.
1


Table of Contents
FLOWSERVE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Amounts in thousands, except par value)March 31,December 31,
20212020
ASSETS
Current assets:  
Cash and cash equivalents$659,305 $1,095,274 
Accounts receivable, net of allowance for expected credit losses of $73,829 and $75,176, respectively
730,481 753,462 
Contract assets, net of allowance for expected credit losses of $3,139 and $3,205, respectively
274,187 277,734 
Inventories, net672,123 667,228 
Prepaid expenses and other112,867 110,635 
Total current assets2,448,963 2,904,333 
Property, plant and equipment, net of accumulated depreciation of $1,087,994 and $1,093,348, respectively
534,899 556,873 
Operating lease right-of-use assets, net200,306 208,125 
Goodwill1,209,119 1,224,886 
Deferred taxes33,684 30,538 
Other intangible assets, net163,236 168,496 
Other assets, net of allowance for expected credit losses of $66,783 and $67,842, respectively
219,431 221,426 
Total assets$4,809,638 $5,314,677 
LIABILITIES AND EQUITY
Current liabilities:  
Accounts payable$386,210 $440,199 
Accrued liabilities453,595 463,222 
Contract liabilities199,538 194,227 
Debt due within one year8,342 8,995 
Operating lease liabilities36,046 34,990 
Total current liabilities1,083,731 1,141,633 
Long-term debt due after one year1,307,579 1,717,911 
Operating lease liabilities168,572 176,246 
Retirement obligations and other liabilities507,970 517,566 
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 value488,906 502,227 
Retained earnings3,658,158 3,670,543 
Treasury shares, at cost – 46,496 and 46,768 shares, respectively
(2,045,937)(2,059,309)
Deferred compensation obligation6,114 6,164 
Accumulated other comprehensive loss(616,200)(609,625)
Total Flowserve Corporation shareholders’ equity1,712,032 1,730,991 
Noncontrolling interests29,754 30,330 
Total equity1,741,786 1,761,321 
Total liabilities and equity$4,809,638 $5,314,677 
See accompanying notes to condensed consolidated financial statements.
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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— — (23,081)— 401 18,453 (50)— — (4,678)
Stock-based compensation— — 9,760 — — — — — — 9,760 
Net earnings— — — 14,080 — — — — 3,081 17,161 
Cash dividends declared— — — (26,465)— — — — — (26,465)
Repurchases of common shares— — — — (129)(5,081)— — — (5,081)
Other comprehensive income, net of tax— — — — — — — (6,575)147 (6,428)
Other, net— — — — — —  — (3,804)(3,804)
Balance — March 31, 2021176,793 $220,991 $488,906 $3,658,158 (46,496)$(2,045,937)$6,114 $(616,200)$29,754 $1,741,786 
Balance — January 1, 2020$176,793 $220,991 $501,045 $3,652,244 (46,262)$(2,051,583)$8,334 $(584,292)$25,602 $1,772,341 
ASU No. 2016-13 - Measurement of Credit Losses on Financial Instruments (Topic 326)
— — — (7,291)— — — — — (7,291)
Stock activity under stock plans— — (17,635)— 317 14,632  — — (3,003)
Stock-based compensation— — 14,311 — — — — — — 14,311 
Net earnings— — — 12,123 — — — — 2,100 14,223 
Cash dividends declared— — — (26,382)— — — — — (26,382)
Repurchases of common shares— — — — (1,057)(32,112)— — — (32,112)
Other comprehensive income (loss), net of tax— — — — — — — (90,537)839 (89,698)
Other, net— — — — — — (10)— (2,546)(2,556)
Balance — March 31, 2020176,793 $220,991 $497,721 $3,630,694 (47,002)$(2,069,063)$8,324 $(674,829)$25,995 $1,639,833 
See accompanying notes to condensed consolidated financial statements.

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FLOWSERVE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Amounts in thousands)Three Months Ended March 31,
 20212020
Cash flows – Operating activities:  
Net earnings, including noncontrolling interests$17,161 $14,223 
Adjustments to reconcile net earnings to net cash provided (used) by operating activities:  
Depreciation21,522 20,716 
Amortization of intangible and other assets3,862 3,121 
Loss on extinguishment of debt7,610  
Stock-based compensation9,760 14,311 
Foreign currency, asset write downs and other non-cash adjustments 24,260 8,304 
Change in assets and liabilities:  
Accounts receivable, net9,005 19,137 
Inventories, net(16,988)(43,226)
Contract assets, net(2,245)(14,462)
Prepaid expenses and other assets, net307 118 
Accounts payable(47,093)(8,799)
Contract liabilities9,001 16,649 
Accrued liabilities and income taxes payable187 10,698 
Retirement obligations and other 5,248 12,949 
       Net deferred taxes (5,219)(6,236)
Net cash flows provided (used) by operating activities36,378 47,503 
Cash flows – Investing activities:  
Capital expenditures(11,422)(15,955)
Proceeds from disposal of assets and other1,934 10,737 
Net cash flows provided (used) by investing activities(9,488)(5,218)
Cash flows – Financing activities:  
Payments on long-term debt(407,473) 
Proceeds under other financing arrangements425 1,694 
Payments under other financing arrangements(1,976)(3,356)
Repurchases of common shares(5,081)(32,112)
Payments related to tax withholding for stock-based compensation(5,547)(3,137)
Payments of dividends(26,465)(26,023)
Other(3,806)(2,547)
Net cash flows provided (used) by financing activities(449,923)(65,481)
Effect of exchange rate changes on cash(12,936)(25,485)
Net change in cash and cash equivalents(435,969)(48,681)
Cash and cash equivalents at beginning of period1,095,274 670,980 
Cash and cash equivalents at end of period$659,305 $622,299 

See accompanying notes to condensed consolidated financial statements.
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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 March 31, 2021, the related condensed consolidated statements of income and comprehensive income for the three months ended March 31, 2021 and 2020, the condensed consolidated statements of shareholders' equity for the three months ended March 31, 2021 and 2020 and the condensed consolidated statements of cash flows for the three months ended March 31, 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 March 31, 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, 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 approximately $1 million, retained earnings by approximately $14 million and accumulated other comprehensive loss by approximately $15 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 March 31, 2020 or any previous period. The March 31, 2020 balances, as presented herein, have been revised. The remaining periods in 2020 not presented herein will be revised, as applicable, in future filings. For a detailed discussion related to the revised balances refer to Note 2.
Coronavirus Pandemic ("COVID-19") and Oil and Gas Market - During the first three 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, resulting in lower bookings as well as lower revenue in the first three months of 2021 as compared to the prior year.
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.

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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.

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 approximately $1 million, retained earnings by approximately $14 million and accumulated other comprehensive loss by approximately $15 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.
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The following table presents the impact to affected line items for the correction of the accounting error involving foreign currency transactions identified in the first quarter of 2021 on our condensed consolidated balance sheet as of December 31, 2020:

December 31, 2020
(Amounts in thousands)As Reported AdjustmentsAs Revised
Retirement obligations and other liabilities$516,087 $1,479 $517,566 
Retained earnings3,656,449 14,094 3,670,543 
Accumulated other comprehensive loss(594,052)(15,573)(609,625)
Total Flowserve Corporation shareholders’ equity1,732,470 (1,479)1,730,991 
Total equity1,762,800 (1,479)1,761,321 
_______________________________________
The following table presents the impact to affected line items on our condensed consolidated statement of income for the three months ended March 31, 2020, for the correction of the accounting error involving foreign currency transactions identified in the first quarter of 2021 and the accounting errors related to the recognition of a liability for unasserted asbestos claims identified in the third quarter of 2020:

Three Months Ended March 31, 2020
(Amounts in thousands)As ReportedAdjustmentsAs Revised
Sales$894,457 $(944)$893,513 
Cost of sales(628,480)1,426 (627,054)
Gross profit265,977 482 266,459 
Selling, general and administrative expense (1)(243,621)(1,830)(245,451)
Operating income25,552 (1,348)24,204 
Other income (expense), net (2)23,462 14,740 38,202 
Earnings before income taxes37,800 13,392 51,192 
Provision for income taxes (36,310)(659)(36,969)
Net earnings, including noncontrolling interests1,490 12,733 14,223 
Net earnings (loss) attributable to Flowserve Corporation$(610)12,733 $12,123 
Net earnings (loss) per share attributable to Flowserve Corporation common shareholders:  
Basic$ $0.09 $0.09 
Diluted 0.09 0.09 
_______________________________________
(1) Adjustment primarily relates to asbestos settlement and defense costs for related legal fees.
(2) Adjustment relates to the accounting error involving foreign currency transactions.
The following table presents the impact to affected line items for the correction of the accounting errors on our condensed consolidated statement of comprehensive income (loss) for the three months ended March 31, 2020:

Three Months Ended March 31, 2020
(Amounts in thousands)As ReportedAdjustmentsAs Revised
Net earnings, including noncontrolling interests$1,490 $12,733 $14,223 
Other comprehensive income (loss):
Foreign currency translation adjustments, net of taxes(81,353)(14,708)(96,061)
Other comprehensive income (loss)(74,990)(14,708)(89,698)
Comprehensive income (loss), including noncontrolling interests(73,500)(1,975)(75,475)
Comprehensive income (loss) attributable to Flowserve Corporation$(76,439)$(1,975)$(78,414)

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The condensed consolidated statement of shareholders' equity for the period from January 1, 2020 to March 31, 2020 and the condensed consolidated statement of comprehensive income for the three months ended March 31, 2020 have also been revised to reflect the impacts of the above described errors.
Except for as described below in (1) and (2), the effect of the adjustments to the condensed consolidated statements of cash flows for the three months ended March 31, 2020 primarily related to the change in net earnings, including noncontrolling interest, in the table above and were offset primarily by a non-cash adjustment to foreign currency, asset write downs and other non-cash adjustments and impacts to changes in operating assets and liabilities. The following table presents the impact to affected line items for the correction of the errors on our condensed consolidated statement of cash flows for the three months ended March 31, 2020:

Three Months Ended March 31, 2020
(Amounts in thousands)As Reported AdjustmentsAs Revised
Net cash flows provided (used) by operating activities $47,302 $201 $47,503 
Net cash flows provided (used) by investing activities (1)(6,573)1,355 (5,218)
Net cash flows provided (used) by financing activities (2)(63,925)(1,556)(65,481)
Cash and cash equivalents at end of period 622,299  622,299 
_______________________________________
(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.
(2) 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.

The impacts of the revisions have been reflected throughout the financial statements, including the applicable footnotes, as appropriate.

3.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 18% and 23% of total revenue for the three month periods ended March 31, 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 82% and 77% of total revenue for the three month periods ended March 31, 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") for custom, highly-engineered pumps, pre-configured industrial pumps, pump systems, mechanical seals, auxiliary systems and replacement parts and related services; and
Flow Control Division ("FCD") designs, manufactures and distributes a broad portfolio of engineered-to-order and configured-to-order isolation valves, control valves, valve automation products, boiler controls 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
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can range from pre-configured, short-cycle products to more customized, highly-engineered equipment ("Original Equipment"). Our aftermarket sales and services are derived from sales of replacement equipment, as well as maintenance, advanced diagnostic, repair and retrofitting services ("Aftermarket"). Each of our two business segments generate Original Equipment and Aftermarket revenues.

The following table presents our customer revenues disaggregated by revenue source:

Three Months Ended March 31, 2021
(Amounts in thousands)FPDFCDTotal
Original Equipment$214,164 $192,720 $406,884 
Aftermarket388,002 62,422 450,424 
$602,166 $255,142 $857,308 
Three Months Ended March 31, 2020
FPDFCDTotal
Original Equipment$252,732 $198,619 $451,351 
Aftermarket382,394 59,768 442,162 
$635,126 $258,387 $893,513 

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Our customer sales are diversified geographically. The following table presents our revenues disaggregated by geography, based on the shipping addresses of our customers:
Three Months Ended March 31, 2021
(Amounts in thousands)FPDFCDTotal
North America(1)$223,975 $90,247 $314,222 
Latin America(1)42,040 6,818 48,858 
Middle East and Africa 82,541 27,687 110,228 
Asia Pacific124,648 78,661 203,309 
Europe128,962 51,729 180,691 
$602,166 $255,142 $857,308 
Three Months Ended March 31, 2020
FPDFCDTotal
North America(1)$267,524 $123,118 $390,642 
Latin America(1)42,187 5,511 47,698 
Middle East and Africa97,168 26,663 123,831 
Asia Pacific112,455 54,563 167,018 
Europe115,792 48,532 164,324 
$635,126 $258,387 $893,513 
__________________________________

(1) North America represents the United States and Canada; Latin America includes Mexico.
On March 31, 2021, the aggregate transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations was approximately $573 million. We estimate recognition of approximately $390 million of this amount as revenue in the remainder of 2021 and an additional $183 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 three months ended March 31, 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  (78,713) 
Revenue recognized in the period in excess of billings164,246 55   
Billings arising during the period in excess of revenue recognized  82,712  
Amounts transferred from contract assets to receivables(156,805)   
Currency effects and other, net(10,988)(98)1,312 (30)
Ending balance, March 31, 2021$274,187 $1,096 $199,538