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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 September 30, 2022
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-20220930_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, 2022 there were 130,695,866 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,
 20222021
Sales$872,881 $866,118 
Cost of sales(633,304)(612,626)
Gross profit239,577 253,492 
Selling, general and administrative expense(221,142)(200,862)
Net earnings from affiliates 5,782 4,732 
Operating income24,217 57,362 
Interest expense(11,582)(14,746)
Loss on extinguishment of debt (563)
Interest income1,141 827 
Other income (expense), net28,676 (1,504)
Earnings before income taxes42,452 41,376 
(Provision for) benefit from income taxes(1,817)10,433 
Net earnings, including noncontrolling interests40,635 51,809 
Less: Net earnings attributable to noncontrolling interests(2,235)(2,024)
Net earnings attributable to Flowserve Corporation $38,400 $49,785 
Net earnings per share attributable to Flowserve Corporation common shareholders:  
Basic$0.29 $0.38 
Diluted0.29 0.38 
Weighted average shares - basic130,703 130,242 
Weighted average shares - diluted131,402 130,789 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
(Amounts in thousands)Three Months Ended September 30,
 20222021
Net earnings, including noncontrolling interests$40,635 $51,809 
Other comprehensive income (loss):  
Foreign currency translation adjustments, net of taxes of $(3,183) and $(1,274), respectively
(89,282)(15,561)
Pension and other postretirement effects, net of taxes of $(213) and $(471), respectively
6,161 4,955 
Cash flow hedging activity, net of taxes of $(9) and $414, respectively
29 (1,347)
Other comprehensive income (loss)(83,092)(11,953)
Comprehensive income (loss), including noncontrolling interests(42,457)39,856 
Comprehensive (income) loss attributable to noncontrolling interests(2,144)(2,021)
Comprehensive income (loss) attributable to Flowserve Corporation$(44,601)$37,835 

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,
 20222021
Sales$2,576,161 $2,621,604 
Cost of sales(1,877,108)(1,838,974)
Gross profit699,053 782,630 
Selling, general and administrative expense(621,956)(609,965)
Gain on sale of business
 1,806 
Net earnings from affiliates 14,821 11,157 
Operating income91,918 185,628 
Interest expense(33,337)(45,847)
Loss on extinguishment of debt  (8,173)
Interest income2,938 1,893 
Other income (expense), net28,152 (20,717)
Earnings before income taxes89,671 112,784 
(Provision for) benefit from income taxes(16,618)3,929 
Net earnings, including noncontrolling interests73,053 116,713 
Less: Net earnings attributable to noncontrolling interests(5,694)(7,495)
Net earnings attributable to Flowserve Corporation$67,359 $109,218 
Net earnings per share attributable to Flowserve Corporation common shareholders:  
Basic$0.52 $0.84 
Diluted0.51 0.83 
Weighted average shares - basic130,604 130,325 
Weighted average shares - diluted131,233 130,867 

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)

(Amounts in thousands)Nine Months Ended September 30,
20222021
Net earnings, including noncontrolling interests$73,053 $116,713 
Other comprehensive income (loss):
Foreign currency translation adjustments, net of taxes of $(23,788) and $(7,021), respectively
(170,187)(12,452)
Pension and other postretirement effects, net of taxes of $(925) and $(1,414), respectively
16,318 11,273 
Cash flow hedging activity, net of taxes of $(27) and $348, respectively
87 (1,130)
Other comprehensive income (loss) (153,782)(2,309)
Comprehensive income (loss), including noncontrolling interests(80,729)114,404 
Comprehensive (income) loss attributable to noncontrolling interests(6,941)(7,654)
Comprehensive income (loss) attributable to Flowserve Corporation$(87,670)$106,750 

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,
20222021
ASSETS
Current assets:  
Cash and cash equivalents$351,870 $658,452 
Accounts receivable, net of allowance for expected credit losses of $82,101 and $74,336, respectively
770,152 739,210 
Contract assets, net of allowance for expected credit losses of $3,999 and $2,393, respectively
205,236 195,598 
Inventories, net779,449 678,287 
Prepaid expenses and other117,077 117,130 
Total current assets2,223,784 2,388,677 
Property, plant and equipment, net of accumulated depreciation of $1,135,437 and $1,191,823, respectively
473,224 515,927 
Operating lease right-of-use assets, net173,442 193,863 
Goodwill1,135,538 1,196,479 
Deferred taxes44,833 44,049 
Other intangible assets, net134,105 152,463 
Other assets, net of allowance for expected credit losses of $66,210 and $67,696, respectively
321,062 258,310 
Total assets$4,505,988 $4,749,768 
LIABILITIES AND EQUITY
Current liabilities:  
Accounts payable$414,372 $410,062 
Accrued liabilities382,535 445,092 
Contract liabilities216,094 202,965 
Debt due within one year47,962 41,058 
Operating lease liabilities30,723 32,628 
Total current liabilities1,091,686 1,131,805 
Long-term debt due after one year1,232,248 1,261,770 
Operating lease liabilities155,328 166,786 
Retirement obligations and other liabilities334,967 352,062 
Commitments and contingencies (See Note 10)
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 value506,744 506,386 
Retained earnings3,678,817 3,691,023 
Treasury shares, at cost – 46,376 and 46,794 shares, respectively
(2,037,758)(2,057,706)
Deferred compensation obligation6,950 7,214 
Accumulated other comprehensive loss(718,619)(563,589)
Total Flowserve Corporation shareholders’ equity1,657,125 1,804,319 
Noncontrolling interests34,634 33,026 
Total equity1,691,759 1,837,345 
Total liabilities and equity$4,505,988 $4,749,768 
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, 2022176,793 $220,991 $500,013 $3,666,935 (46,377)$(2,037,839)$6,921 $(635,618)$32,490 $1,753,893 
Stock activity under stock plans— — (129)— 1 81 29 — — (19)
Stock-based compensation— 6,860 — — — — — — 6,860 
Net earnings— — — 38,400 — — — — 2,235 40,635 
Cash dividends declared— — — (26,518)— — — — — (26,518)
Other comprehensive income (loss), net of tax— — — — — — — (83,001)(91)(83,092)
Balance — September 30, 2022176,793 $220,991 $506,744 $3,678,817 (46,376)$(2,037,758)$6,950 $(718,619)$34,634 $1,691,759 
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)
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 
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, 2022176,793 $220,991 $506,386 $3,691,023 (46,794)$(2,057,706)$7,214 $(563,589)$33,026 $1,837,345 
Stock activity under stock plans— — (23,399)— 418 19,948 (264)— — (3,715)
Stock-based compensation— — 23,757 — — — — — — 23,757 
Net earnings— — — 67,359 — — — — 5,694 73,053 
Cash dividends declared— — — (79,565)— — — — — (79,565)
Other comprehensive income (loss), net of tax— — — — — — — (155,030)1,248 (153,782)
Other, net— — — — — — — — (5,334)(5,334)
Balance — September 30, 2022176,793 $220,991 $506,744 $3,678,817 (46,376)$(2,037,758)$6,950 $(718,619)$34,634 $1,691,759 
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— — — — — — — — (6,255)(6,255)
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 
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,
 20222021
Cash flows – Operating activities:  
Net earnings, including noncontrolling interests$73,053 $116,713 
Adjustments to reconcile net earnings to net cash provided (used) by operating activities:  
Depreciation59,207 66,316 
Amortization of intangible and other assets10,051 10,643 
Loss on extinguishment of debt 8,173 
Stock-based compensation23,757 23,610 
Foreign currency, asset write downs and other non-cash adjustments (24,085)9,897 
Change in assets and liabilities:  
Accounts receivable, net(78,376)24,361 
Inventories, net(151,938)(47,533)
Contract assets, net(21,912)35,358 
Prepaid expenses and other, net(14,881)2,429 
Accounts payable29,307 (58,600)
Contract liabilities27,237 9,379 
Accrued liabilities and income taxes payable(32,735)9,136 
Retirement obligations and other liabilities24,123 (23,842)
       Net deferred taxes (32,293)(34,933)
Net cash flows provided (used) by operating activities(109,485)151,107 
Cash flows – Investing activities:  
Capital expenditures(45,831)(34,034)
Other184 (4,679)
Net cash flows provided (used) by investing activities(45,647)(38,713)
Cash flows – Financing activities:  
Payments on senior notes (407,473)
Proceeds from issuance of senior notes 498,280 
Proceeds from long-term debt 300,000 
Payments of deferred loan cost (5,399)
Payments on term loan(24,239) 
Proceeds under other financing arrangements1,135 1,408 
Payments under other financing arrangements(356)(6,215)
Repurchases of common shares (17,531)
Payments related to tax withholding for stock-based compensation(4,578)(5,899)
Payments of dividends(78,406)(78,551)
Other(5,334)(6,276)
Net cash flows provided (used) by financing activities(111,778)272,344 
Effect of exchange rate changes on cash(39,672)(22,743)
Net change in cash and cash equivalents(306,582)361,995 
Cash and cash equivalents at beginning of period658,452 1,095,274 
Cash and cash equivalents at end of period$351,870 $1,457,269 
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, 2022 and December 31, 2021, and the related condensed consolidated statements of income, condensed consolidated statements of comprehensive income (loss), condensed consolidated statements of shareholders' equity for the three and nine months ended September 30, 2022 and 2021 and condensed consolidated statements of cash flows for the nine months ended September 30, 2022 and 2021 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, 2022 ("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, 2021 ("2021 Annual Report").
Coronavirus Pandemic ("COVID-19") - During the first nine months of 2022, we continued to respond to the macroeconomic and global economic impacts caused by COVID-19. Many of our suppliers have experienced varying lengths of production and shipping delays related to the effects of COVID-19. These conditions have had an adverse impact on the speed at which we can manufacture and ship our products to customers, and have also led to an increase in logistics, transportation and freight costs. As a result of the macroeconomic impacts, we have also experienced labor constraints and inflationary pressures. The Company's condensed consolidated financial statements presented reflect management's estimates and assumptions regarding the effects of COVID-19 as of the date of the condensed consolidated financial statements.
Russia and Ukraine Conflict - In response to the ongoing military conflict in Ukraine, several countries, including the United States, have imposed economic sanctions and export controls on certain industry sectors and parties in Russia. As a result of this conflict, including the aforementioned sanctions and overall instability in the region, in February 2022 we stopped accepting new orders in Russia and temporarily suspended fulfillment of existing orders. In March 2022, we made the decision to permanently cease all Company operations in Russia. We have commenced the necessary actions to cease operations of our Russian subsidiary, including taking steps to cancel existing contracts with customers, terminate our approximately 50 Russia-based employees and terminate other related contractual commitments, and currently expect this process to be substantially complete by the end of 2022. As a result of the conflict and the resulting macroeconomic impacts we have also experienced supply shortages and inflationary pressures.
In 2021, our Russian subsidiary had approximately $14 million of sales with an additional $36 million of sales from certain of our other foreign subsidiaries into the Russian market. As of March 31, 2022, the net assets held on our Russian subsidiary's balance sheet were $2.7 million, including $7.1 million of cash, $3.6 million of accounts receivables, a $9.3 million net intercompany payable position and other immaterial amounts. In addition, certain of our other foreign subsidiaries had open contracts with Russian customers that were subsequently cancelled for which revenue had been previously recognized over time utilizing the percentage of completion ("POC") method. As a result of the above, in the first quarter of 2022 we recorded a $20.2 million pre-tax charge ($21.0 million after-tax) to reserve the asset positions of our Russian subsidiary (excluding cash) as of March 31, 2022, to record contra-revenue for previously recognized revenue and estimated cancellation fees on open contracts that were previously accounted for under POC and subsequently canceled, to establish a reserve for the estimated cost to exit the operations of our Russian subsidiary and to record a reserve for our estimated financial exposure on contracts that have or are anticipated to be cancelled. We reevaluated our financial exposure as of June 30, 2022 and September 30, 2022, and concluded that the reserve recorded as of March 31, 2022 is sufficient and no material changes to reserves were needed.
The following table presents the above impacts of the Russia pre-tax charge:
7


Nine Months Ended September 30, 2022
(Amounts in thousands)Flowserve Pump DivisionFlow Control DivisionConsolidated Total
Sales$(5,429)$(2)$(5,431)
Cost of sales ("COS")3,510 1,112 4,622 
Gross loss(8,939)(1,114)(10,053)
Selling, general and administrative expense ("SG&A")9,111 1,082 10,193 
Operating loss$(18,050)$(2,196)$(20,246)
We continue to monitor the situation involving Russia and Ukraine and its impact on the rest of our global business. This includes the macroeconomic impact, including with respect to global supply chain issues and inflationary pressures. To date, these impacts have not been material to our business and we do not currently expect that any incremental impact in future quarters, including any financial impacts caused by our cancellation of customer contracts and ceasing of operations in Russia, will be material to the Company.
Prior Period Lease Accounting Correction - In conjunction with our close process for the third quarter of 2022, the Company identified an accounting error related to certain operating real estate leases that have escalating rent payments which were not correctly recorded on a straight-line basis in the amount of $6.4 million. Approximately $5.8 million of the error impacted the Company’s condensed consolidated statements of income prior to adoption of ASU No. 2016-02, Leases (Topic 842) in 2019 and the remaining immaterial amount impacted each period subsequent to adoption. To correct the cumulative impact of the error the Company recorded an adjustment of $6.4 million of incremental operating lease expense in the third quarter of 2022 ($5.5 million classified as SG&A and $0.9 million classified as COS), with the offsetting adjustment to reduce operating lease right-of-use assets, net on our condensed consolidated balance sheet for the period ended September 30, 2022. There was no impact to our condensed statements of cash flows as a result of the correction of the error.
Accounting Developments
Pronouncements Not Yet Implemented
In October 2021, the FASB issued ASU No. 2021-08, "Accounting for Contract Assets and Contract Liabilities from Contracts with Customers." The amendments in this Update improve comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. The amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years and should be applied prospectively to business combinations occurring on or after the effective date of the amendments. We do not expect the impact of this ASU to be material.
In November 2021, the FASB issued ASU No. 2021-10, "Government Assistance (Topic 832)." 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 aim to provide increased transparency by requiring business entities to disclose information about certain types of government assistance they receive in the notes to the financial statements. The amendments are effective for annual periods beginning after December 15, 2021 and can be applied either prospectively or retrospectively. We do not expect the impact of this ASU to be material.
In March 2022, the FASB issued ASU No. 2022-02, "Troubled Debt Restructurings and Vintage Disclosures." The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the Current Expected Credit Loss ("CECL") model and enhance the disclosure requirements for loan refinancing and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years and should be applied prospectively. We are evaluating the impact of this ASU on our disclosures.
In September 2022, the FASB issued ASU No. 2022-04, "Liabilities—Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations." The amendments require a buyer that uses supplier finance programs to make annual disclosures about the program’s key terms, the balance sheet presentation of related amounts, the confirmed amount outstanding at the end of the period, and associated roll-forward information. Only the amount outstanding at the end of the period must be disclosed in interim periods. The amendments are effective for all entities for fiscal years beginning after December 15, 2022 on a retrospective basis, including interim periods within those fiscal years, except for the requirement to disclose roll-forward information, which is effective prospectively for fiscal years beginning after December 15, 2023. We are evaluating the impact of this ASU on our disclosures.

8


2.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 the asset.
Our primary method for recognizing revenue over time is the POC method. Revenue from products and services transferred to customers over time accounted for approximately 12% and 15% of total revenue for the three month period ended September 30, 2022 and 2021, respectively, and 12% and 15% for the nine month period ended September 30, 2022 and 2021, 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 88% and 85% of total revenue for the three month period ended September 30, 2022 and 2021, respectively, and 88% and 85% for the nine month period ended September 30, 2022 and 2021, respectively. Refer to Note 3 to our consolidated financial statements included in our 2021 Annual Report for a more comprehensive discussion of our policies and accounting practices of revenue recognition.
Disaggregated Revenue
We conduct our operations through two business segments based on the type of product and how we manage the business:
Flowserve Pump Division ("FPD") designs and manufactures custom, highly-engineered pumps, pre-configured industrial pumps, pump systems, mechanical seals, auxiliary systems and replacement parts and related services; and
Flow Control Division ("FCD") designs, manufactures and distributes a broad portfolio of engineered-to-order and configured-to-order isolation valves, control valves, valve automation products and related equipment.
Our revenue sources are derived from our original equipment manufacturing and our aftermarket sales and services. Our original equipment revenues are generally related to originally designed, manufactured, distributed and installed equipment that can range from pre-configured, short-cycle products to more customized, highly-engineered equipment ("Original Equipment"). Our aftermarket sales and services are derived from sales of replacement equipment, as well as maintenance, advanced diagnostic, repair and retrofitting services ("Aftermarket"). Each of our two business segments generate Original Equipment and Aftermarket revenues.
The following tables present our customer revenues disaggregated by revenue source:
Three Months Ended September 30, 2022
(Amounts in thousands)FPDFCDTotal
Original Equipment$196,539 $215,550 $412,089 
Aftermarket394,807 65,985 460,792 
$591,346 $281,535 $872,881 
Three Months Ended September 30, 2021
FPDFCDTotal
Original Equipment$223,358 $201,890 $425,248 
Aftermarket377,750 63,120 440,870 
$601,108 $265,010 $866,118 

9


Nine Months Ended September 30, 2022
(Amounts in thousands)FPDFCDTotal
Original Equipment$609,640 $596,989 $1,206,629 
Aftermarket1,170,117