|
PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS
|
||||||||||||
|
(Unaudited)
|
||||||||||||
|
December 31, 2019
|
||||||||||||
|
(Amounts in thousands, except par value)
|
As Reported
|
Adjustments
|
As Revised
|
|||||||||
|
ASSETS
|
||||||||||||
|
Current assets:
|
||||||||||||
|
Cash and cash equivalents
|
$
|
670,980
|
$
|
-
|
$
|
670,980
|
||||||
|
Accounts receivable, net
|
795,538
|
-
|
795,538
|
|||||||||
|
Contract assets, net
|
272,914
|
-
|
272,914
|
|||||||||
|
Inventories, net
|
660,837
|
-
|
660,837
|
|||||||||
|
Prepaid expenses and other
|
105,101
|
1,377
|
106,478
|
|||||||||
|
Total current assets
|
2,505,370
|
1,377
|
2,506,747
|
|||||||||
|
Property, plant and equipment, net
|
572,175
|
(8,611
|
)
|
563,564
|
||||||||
|
Operating lease right-of-use assets, net
|
186,218
|
-
|
186,218
|
|||||||||
|
Goodwill
|
1,193,010
|
-
|
1,193,010
|
|||||||||
|
Deferred taxes
|
54,879
|
-
|
54,879
|
|||||||||
|
Other intangible assets, net
|
180,805
|
-
|
180,805
|
|||||||||
|
Other assets, net
|
227,185
|
25,869
|
253,054
|
|||||||||
|
Total assets
|
$
|
4,919,642
|
$
|
18,635
|
$
|
4,938,277
|
||||||
|
LIABILITIES AND EQUITY
|
||||||||||||
|
Current liabilities:
|
||||||||||||
|
Accounts payable
|
$
|
447,582
|
$
|
-
|
$
|
447,582
|
||||||
|
Accrued liabilities
|
401,385
|
-
|
401,385
|
|||||||||
|
Contract liabilities
|
216,541
|
4,554
|
221,095
|
|||||||||
|
Debt due within one year
|
11,272
|
-
|
11,272
|
|||||||||
|
Operating lease liabilities
|
36,108
|
-
|
36,108
|
|||||||||
|
Total current liabilities
|
1,112,888
|
4,554
|
1,117,442
|
|||||||||
|
Long-term debt due after one year
|
1,365,977
|
-
|
1,365,977
|
|||||||||
|
Operating lease liabilities
|
151,523
|
-
|
151,523
|
|||||||||
|
Retirement obligations and other liabilities
|
473,295
|
57,699
|
530,994
|
|||||||||
|
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 value
|
501,045
|
-
|
501,045
|
|||||||||
|
Retained earnings
|
3,695,862
|
(43,618
|
)
|
3,652,244
|
||||||||
|
Treasury shares, at cost
|
(2,051,583
|
)
|
-
|
(2,051,583
|
)
|
|||||||
|
Deferred compensation obligation
|
8,334
|
-
|
8,334
|
|||||||||
|
Accumulated other comprehensive loss
|
(584,292
|
)
|
-
|
(584,292
|
)
|
|||||||
|
Total Flowserve Corporation shareholders' equity
|
1,790,357
|
(43,618
|
)
|
1,746,739
|
||||||||
|
Noncontrolling interests
|
25,602
|
-
|
25,602
|
|||||||||
|
Total equity
|
1,815,959
|
(43,618
|
)
|
1,772,341
|
||||||||
|
Total liabilities and equity
|
$
|
4,919,642
|
$
|
18,635
|
$
|
4,938,277
|
||||||
|
PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||||||
|
(Amounts in thousands, except per share data)
|
Year Ended December 31, 2019
|
Year Ended December 31, 2018
|
||||||||||||||||||||||
|
As Reported
|
Adjustments
|
As Revised
|
As Reported
|
Adjustments
|
As Revised
|
|||||||||||||||||||
|
Sales
|
$
|
3,944,850
|
$
|
(5,153
|
)
|
$
|
3,939,697
|
$
|
3,832,666
|
$
|
3,033
|
$
|
3,835,699
|
|||||||||||
|
Cost of sales
|
(2,649,480
|
)
|
(874
|
)
|
(2,650,354
|
)
|
(2,644,830
|
)
|
-
|
(2,644,830
|
)
|
|||||||||||||
|
Gross profit
|
1,295,370
|
(6,027
|
)
|
1,289,343
|
1,187,836
|
3,033
|
1,190,869
|
|||||||||||||||||
|
Selling, general and administrative expense
|
(899,813
|
)
|
(13,390
|
)
|
(913,203
|
)
|
(951,441
|
)
|
(22,869
|
)
|
(974,310
|
)
|
||||||||||||
|
Net earnings from affiliates
|
10,483
|
-
|
10,483
|
11,143
|
-
|
11,143
|
||||||||||||||||||
|
Operating income
|
406,040
|
(19,417
|
)
|
386,623
|
247,538
|
(19,836
|
)
|
227,702
|
||||||||||||||||
|
Interest expense
|
(54,980
|
)
|
-
|
(54,980
|
)
|
(58,160
|
)
|
-
|
(58,160
|
)
|
||||||||||||||
|
Interest income
|
8,409
|
-
|
8,409
|
6,465
|
-
|
6,465
|
||||||||||||||||||
|
Other income (expense), net
|
(17,619
|
)
|
-
|
(17,619
|
)
|
(19,569
|
)
|
-
|
(19,569
|
)
|
||||||||||||||
|
Earnings before income taxes
|
341,850
|
(19,417
|
)
|
322,433
|
176,274
|
(19,836
|
)
|
156,438
|
||||||||||||||||
|
Provision for income taxes
|
(80,070
|
)
|
4,576
|
(75,494
|
)
|
(51,224
|
)
|
4,675
|
(46,549
|
)
|
||||||||||||||
|
Net earnings, including noncontrolling interests
|
261,780
|
(14,841
|
)
|
246,939
|
125,050
|
(15,161
|
)
|
109,889
|
||||||||||||||||
|
Less: Net earnings attributable to noncontrolling interests
|
(8,112
|
)
|
-
|
(8,112
|
)
|
(5,379
|
)
|
-
|
(5,379
|
)
|
||||||||||||||
|
Net earnings attributable to Flowserve Corporation
|
$
|
253,668
|
$
|
(14,841
|
)
|
$
|
238,827
|
$
|
119,671
|
$
|
(15,161
|
)
|
$
|
104,510
|
||||||||||
|
Net earnings per share:
|
||||||||||||||||||||||||
|
Basic
|
$
|
1.94
|
$
|
(0.11
|
)
|
$
|
1.82
|
$
|
0.91
|
$
|
(0.12
|
)
|
$
|
0.80
|
||||||||||
|
Diluted
|
1.93
|
(0.11
|
)
|
1.81
|
0.91
|
(0.12
|
)
|
0.80
|
||||||||||||||||
|
Shares outstanding:
|
||||||||||||||||||||||||
|
Basic
|
131,034
|
-
|
131,034
|
130,823
|
-
|
130,823
|
||||||||||||||||||
|
Diluted
|
131,719
|
-
|
131,719
|
131,271
|
-
|
131,271
|
||||||||||||||||||
|
PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||
|
(Unaudited)
|
||||||||||||
|
(Amounts in thousands, except per share data)
|
Nine Months Ended September 30, 2019
|
|||||||||||
|
As Reported
|
Adjustments
|
As Revised
|
||||||||||
|
Sales
|
$
|
2,876,679
|
$
|
(5,162
|
)
|
$
|
2,871,517
|
|||||
|
Cost of sales
|
(1,930,881
|
)
|
(875
|
)
|
(1,931,756
|
)
|
||||||
|
Gross profit
|
945,798
|
(6,037
|
)
|
939,761
|
||||||||
|
Selling, general and administrative expense
|
(655,046
|
)
|
(10,579
|
)
|
(665,625
|
)
|
||||||
|
Net earnings from affiliates
|
8,057
|
-
|
8,057
|
|||||||||
|
Operating income
|
298,809
|
(16,616
|
)
|
282,193
|
||||||||
|
Interest expense
|
(42,025
|
)
|
-
|
(42,025
|
)
|
|||||||
|
Interest income
|
6,494
|
-
|
6,494
|
|||||||||
|
Other income (expense), net
|
(8,098
|
)
|
(7,055
|
)
|
(15,153
|
)
|
||||||
|
Earnings before income taxes
|
255,180
|
(23,671
|
)
|
231,509
|
||||||||
|
Provision for income taxes
|
(64,646
|
)
|
6,039
|
(58,607
|
)
|
|||||||
|
Net earnings, including noncontrolling interests
|
190,534
|
(17,632
|
)
|
172,902
|
||||||||
|
Less: Net earnings attributable to noncontrolling interests
|
(6,659
|
)
|
-
|
(6,659
|
)
|
|||||||
|
Net earnings attributable to Flowserve Corporation
|
$
|
183,875
|
$
|
(17,632
|
)
|
$
|
166,243
|
|||||
|
Net earnings per share:
|
||||||||||||
|
Basic
|
$
|
1.40
|
$
|
(0.13
|
)
|
$
|
1.27
|
|||||
|
Diluted
|
1.40
|
(0.13
|
)
|
1.26
|
||||||||
|
Shares outstanding:
|
||||||||||||
|
Basic
|
131,092
|
-
|
131,092
|
|||||||||
|
Diluted
|
131,697
|
-
|
131,697
|
|||||||||
|
PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||
|
(Unaudited)
|
||||||||||||
|
(Amounts in thousands, except per share data)
|
Three Months Ended September 30, 2019
|
|||||||||||
|
As Reported
|
Adjustments
|
As Revised
|
||||||||||
|
Sales
|
$
|
996,544
|
$
|
(835
|
)
|
$
|
995,709
|
|||||
|
Cost of sales
|
(662,855
|
)
|
(1
|
)
|
(662,856
|
)
|
||||||
|
Gross profit
|
333,689
|
(836
|
)
|
332,853
|
||||||||
|
Selling, general and administrative expense
|
(226,216
|
)
|
(4,146
|
)
|
(230,362
|
)
|
||||||
|
Net earnings from affiliates
|
2,087
|
-
|
2,087
|
|||||||||
|
Operating income
|
109,560
|
(4,982
|
)
|
104,578
|
||||||||
|
Interest expense
|
(13,981
|
)
|
-
|
(13,981
|
)
|
|||||||
|
Interest income
|
2,253
|
-
|
2,253
|
|||||||||
|
Other income (expense), net
|
(1,622
|
)
|
(6,855
|
)
|
(8,477
|
)
|
||||||
|
Earnings before income taxes
|
96,210
|
(11,837
|
)
|
84,373
|
||||||||
|
Provision for income taxes
|
(25,647
|
)
|
3,237
|
(22,410
|
)
|
|||||||
|
Net earnings, including noncontrolling interests
|
70,563
|
(8,600
|
)
|
61,963
|
||||||||
|
Less: Net earnings attributable to noncontrolling interests
|
(2,121
|
)
|
-
|
(2,121
|
)
|
|||||||
|
Net earnings attributable to Flowserve Corporation
|
$
|
68,442
|
$
|
(8,600
|
)
|
$
|
59,842
|
|||||
|
Net earnings per share:
|
||||||||||||
|
Basic
|
$
|
0.52
|
$
|
(0.07
|
)
|
$
|
0.46
|
|||||
|
Diluted
|
0.52
|
(0.07
|
)
|
0.45
|
||||||||
|
Shares outstanding:
|
||||||||||||
|
Basic
|
131,145
|
-
|
131,145
|
|||||||||
|
Diluted
|
131,846
|
-
|
131,846
|
|||||||||
|
PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||||||
|
(Amounts in thousands, except per share data)
|
Three Months Ended June 30, 2020
|
Three Months Ended June 30, 2019
|
||||||||||||||||||||||
|
As Reported
|
Adjustments
|
As Revised
|
As Reported
|
Adjustments
|
As Revised
|
|||||||||||||||||||
|
Sales
|
$
|
924,965
|
$
|
47
|
$
|
925,012
|
$
|
990,084
|
$
|
(85
|
)
|
$
|
989,999
|
|||||||||||
|
Cost of sales
|
(657,805
|
)
|
2,499
|
(655,306
|
)
|
(672,051
|
)
|
-
|
(672,051
|
)
|
||||||||||||||
|
Gross profit
|
267,160
|
2,546
|
269,706
|
318,033
|
(85
|
)
|
317,948
|
|||||||||||||||||
|
Selling, general and administrative expense
|
(227,358
|
)
|
(1,984
|
)
|
(229,342
|
)
|
(223,676
|
)
|
(5,170
|
)
|
(228,846
|
)
|
||||||||||||
|
Net earnings from affiliates
|
3,086
|
-
|
3,086
|
3,661
|
-
|
3,661
|
||||||||||||||||||
|
Operating income
|
42,888
|
562
|
43,450
|
98,018
|
(5,255
|
)
|
92,763
|
|||||||||||||||||
|
Interest expense
|
(12,900
|
)
|
(35
|
)
|
(12,935
|
)
|
(14,013
|
)
|
-
|
(14,013
|
)
|
|||||||||||||
|
Interest income
|
1,149
|
-
|
1,149
|
2,218
|
-
|
2,218
|
||||||||||||||||||
|
Other income (expense), net
|
(14,941
|
)
|
(1
|
)
|
(14,942
|
)
|
(3,336
|
)
|
(200
|
)
|
(3,536
|
)
|
||||||||||||
|
Earnings before income taxes
|
16,196
|
526
|
16,722
|
82,887
|
(5,455
|
)
|
77,432
|
|||||||||||||||||
|
Provision for income taxes
|
(5,409
|
)
|
560
|
(4,849
|
)
|
(22,413
|
)
|
1,299
|
(21,114
|
)
|
||||||||||||||
|
Net earnings, including noncontrolling interests
|
10,787
|
1,086
|
11,873
|
60,474
|
(4,156
|
)
|
56,318
|
|||||||||||||||||
|
Less: Net earnings attributable to noncontrolling interests
|
(2,142
|
)
|
-
|
(2,142
|
)
|
(2,302
|
)
|
-
|
(2,302
|
)
|
||||||||||||||
|
Net earnings attributable to Flowserve Corporation
|
$
|
8,645
|
$
|
1,086
|
$
|
9,731
|
$
|
58,172
|
$
|
(4,156
|
)
|
$
|
54,016
|
|||||||||||
|
Net earnings per share:
|
||||||||||||||||||||||||
|
Basic
|
$
|
0.07
|
$
|
0.01
|
$
|
0.07
|
$
|
0.44
|
$
|
(0.03
|
)
|
$
|
0.41
|
|||||||||||
|
Diluted
|
0.07
|
0.01
|
0.07
|
0.44
|
(0.03
|
)
|
0.41
|
|||||||||||||||||
|
Shares outstanding:
|
||||||||||||||||||||||||
|
Basic
|
130,170
|
-
|
130,170
|
131,147
|
-
|
131,147
|
||||||||||||||||||
|
Diluted
|
130,730
|
-
|
130,730
|
131,754
|
-
|
131,754
|
||||||||||||||||||
|
PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||||||
|
(Amounts in thousands, except per share data)
|
Three Months Ended March 31, 2020
|
Three Months Ended March 31, 2019
|
||||||||||||||||||||||
|
As Reported
|
Adjustments
|
As Revised
|
As Reported
|
Adjustments
|
As Revised
|
|||||||||||||||||||
|
Sales
|
$
|
894,457
|
$
|
(944
|
)
|
$
|
893,513
|
$
|
890,051
|
$
|
(4,242
|
)
|
$
|
885,809
|
||||||||||
|
Cost of sales
|
(628,480
|
)
|
1,426
|
(627,054
|
)
|
(595,975
|
)
|
(874
|
)
|
(596,849
|
)
|
|||||||||||||
|
Gross profit
|
265,977
|
482
|
266,459
|
294,076
|
(5,116
|
)
|
288,960
|
|||||||||||||||||
|
Selling, general and administrative expense
|
(243,621
|
)
|
(1,831
|
)
|
(245,452
|
)
|
(205,154
|
)
|
(1,263
|
)
|
(206,417
|
)
|
||||||||||||
|
Net earnings from affiliates
|
3,196
|
1
|
3,197
|
2,309
|
-
|
2,309
|
||||||||||||||||||
|
Operating income
|
25,552
|
(1,348
|
)
|
24,204
|
91,231
|
(6,379
|
)
|
84,852
|
||||||||||||||||
|
Interest expense
|
(12,963
|
)
|
-
|
(12,963
|
)
|
(14,031
|
)
|
-
|
(14,031
|
)
|
||||||||||||||
|
Interest income
|
1,749
|
-
|
1,749
|
2,023
|
-
|
2,023
|
||||||||||||||||||
|
Other income (expense), net
|
23,462
|
-
|
23,462
|
(3,140
|
)
|
-
|
(3,140
|
)
|
||||||||||||||||
|
Earnings before income taxes
|
37,800
|
(1,348
|
)
|
36,452
|
76,083
|
(6,379
|
)
|
69,704
|
||||||||||||||||
|
Provision for income taxes
|
(36,310
|
)
|
656
|
(35,654
|
)
|
(16,587
|
)
|
1,504
|
(15,083
|
)
|
||||||||||||||
|
Net earnings, including noncontrolling interests
|
1,490
|
(692
|
)
|
798
|
59,496
|
(4,875
|
)
|
54,621
|
||||||||||||||||
|
Less: Net earnings attributable to noncontrolling interests
|
(2,100
|
)
|
-
|
(2,100
|
)
|
(2,235
|
)
|
-
|
(2,235
|
)
|
||||||||||||||
|
Net earnings (loss) attributable to Flowserve Corporation
|
$
|
(610
|
)
|
$
|
(692
|
)
|
$
|
(1,302
|
)
|
$
|
57,261
|
$
|
(4,875
|
)
|
$
|
52,386
|
||||||||
|
Net earnings per share:
|
||||||||||||||||||||||||
|
Basic
|
$
|
(0.00
|
)
|
$
|
(0.01
|
)
|
$
|
(0.01
|
)
|
$
|
0.44
|
$
|
(0.04
|
)
|
$
|
0.40
|
||||||||
|
Diluted
|
(0.00
|
)
|
(0.01
|
)
|
(0.01
|
)
|
0.44
|
(0.04
|
)
|
0.40
|
||||||||||||||
|
Shares outstanding:
|
||||||||||||||||||||||||
|
Basic
|
130,731
|
-
|
130,731
|
130,982
|
-
|
130,982
|
||||||||||||||||||
|
Diluted
|
130,731
|
-
|
130,731
|
131,532
|
-
|
131,532
|
||||||||||||||||||
|
PRELIMINARY SELECTED FINANCIAL DATA
|
||||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||
|
Years Ended December 31,
|
||||||||||||||||||||
|
(Amounts in thousands, except per share data)
|
2019
|
2018
|
2017
|
2016
|
2015
|
|||||||||||||||
|
As Reported
|
||||||||||||||||||||
|
Net earnings attributable to Flowserve Corporation
|
$
|
253,668
|
$
|
119,671
|
$
|
2,652
|
$
|
132,455
|
$
|
258,411
|
||||||||||
|
Net earnings per share - Basic
|
$
|
1.94
|
$
|
0.91
|
$
|
0.02
|
$
|
1.02
|
$
|
1.94
|
||||||||||
|
Net earnings per share - Diluted
|
1.93
|
0.91
|
0.02
|
1.01
|
1.93
|
|||||||||||||||
|
As Revised
|
||||||||||||||||||||
|
Net earnings attributable to Flowserve Corporation
|
$
|
238,828
|
$
|
104,510
|
$
|
(10,234
|
)
|
$
|
127,502
|
$
|
252,973
|
|||||||||
|
Net earnings per share - Basic
|
$
|
1.82
|
$
|
0.80
|
$
|
(0.08
|
)
|
$
|
0.98
|
$
|
1.90
|
|||||||||
|
Net earnings per share - Diluted
|
1.81
|
0.80
|
(0.08
|
)
|
0.97
|
1.89
|
||||||||||||||