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Revision to Previously Reported Financial Information (Tables) | 6 Months Ended
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Jun. 30, 2021
Accounting Changes and Error Corrections [Abstract] |
Schedule of Adjustments | The following tables present the impact to the affected line items on our condensed consolidated financial statements for the periods indicated for the correction of the accounting error involving foreign currency transactions identified in the first quarter of 2021, the accounting errors related to the recognition of a liability for unasserted asbestos claims identified in the third quarter of 2020, and other immaterial misstatements previously identified:
| June 30, 2020
(Amounts in thousands) | As Reported |  | Adjustments |  | As Revised
Contract assets, net of allowance for expected credit losses | $ | 309,149 |  |  | $ | 47 |  |  | $ | 309,196 |
Total current assets | 2,430,555 |  |  | 47 |  |  | 2,430,602 |
Property, plant and equipment, net of accumulated depreciation(1) | 541,768 |  |  | 5,703 |  |  | 547,471 |
Other assets, net of allowance for expected credit losses(2) | 218,604 |  |  | 16,926 |  |  | 235,530 |
Total assets | 4,755,702 |  |  | 22,676 |  |  | 4,778,378 |
Accrued liabilities(3) | 401,041 |  |  | (4,029) |  |  | 397,012 |
Contract liabilities(4) | 214,135 |  |  | 5,498 |  |  | 219,633 |
Debt due within one year | 9,058 |  |  | 156 |  |  | 9,214 |
Total current liabilities | 1,088,738 |  |  | 1,625 |  |  | 1,090,363 |
Long-term debt due after one year(1) | 1,367,478 |  |  | 5,646 |  |  | 1,373,124 |
Retirement obligations and other liabilities(5) | $ | 470,400 |  |  | $ | 59,546 |  |  | $ | 529,946 |
Retained earnings(6) | 3,643,868 |  |  | (33,398) |  |  | 3,610,470 |
Accumulated other comprehensive loss | (643,173) |  |  | (10,743) |  |  | (653,916) |
Total Flowserve Corporation shareholders’ equity | 1,662,572 |  |  | (44,141) |  |  | 1,618,431 |
Total equity | 1,690,351 |  |  | (44,141) |  |  | 1,646,210 |
Total liabilities and equity | $ | 4,755,702 |  |  | $ | 22,676 |  |  | $ | 4,778,378 |
______________________________________ (1) Adjustment relates to right-of-use (“ROU”) asset and lease liability for an operating lease. (2) Adjustment relates to the associated receivables for expected insurance proceeds for asbestos settlements and defense costs. (3) Adjustment primarily relates to non-restructuring realignment charges associated with workforce reductions in our Realignment Programs ("2020 Realignment Program"). Refer to Note 17 for further discussion of this program. (4) Adjustment relates to one of our sites for correction in contract position caused by errors in estimated costs under the over time revenue recognition model. (5) Adjustment primarily relates to IBNR reserves associated with unasserted asbestos claims. (6) The adjustments to retained earnings are the cumulative effect of the immaterial errors that were corrected in prior periods.
| Three Months Ended June 30, 2020
(Amounts in thousands, except per share data) | As Reported |  | Adjustments |  | As Revised
Sales | $ | 924,965 |  |  | $ | 47 |  |  | $ | 925,012 |
Cost of sales(1) | (657,805) |  |  | 2,500 |  |  | (655,305) |
Gross profit | 267,160 |  |  | 2,547 |  |  | 269,707 |
Selling, general and administrative expense(2) | (227,358) |  |  | (1,985) |  |  | (229,343) |
Operating income | 42,888 |  |  | 564 |  |  | 43,452 |
Other income (expense), net(3) | (14,941) |  |  | (3,966) |  |  | (18,907) |
Earnings before income taxes | 16,196 |  |  | (3,437) |  |  | 12,759 |
Provision for income taxes | (5,409) |  |  | 924 |  |  | (4,485) |
Net earnings, including noncontrolling interests | 10,787 |  |  | (2,513) |  |  | 8,274 |
Net earnings (loss) attributable to Flowserve Corporation | $ | 8,645 |  |  | $ | (2,513) |  |  | $ | 6,132 |
Net earnings (loss) per share attributable to Flowserve Corporation common shareholders: |  |  |  |  |
Basic | $ | 0.07 |  |  | $ | (0.02) |  |  | $ | 0.05 |
Diluted | 0.07 |  |  | (0.02) |  |  | 0.05 |
______________________________________ (1) Adjustment primarily relates to non-restructuring realignment charges associated with workforce reductions in our 2020 Realignment Program. (2) Adjustment primarily relates to asbestos settlement and defense costs for related legal fees. (3) Adjustment relates to the accounting error involving foreign currency transactions.
| Three Months Ended June 30, 2020
(Amounts in thousands) | As Reported |  | Adjustments |  | As Revised
Net earnings, including noncontrolling interests(1) | $ | 10,787 |  |  | $ | (2,513) |  |  | $ | 8,274 |
Other comprehensive income (loss): |  |  |  |  |
Foreign currency translation adjustments, net of taxes(2) | 15,084 |  |  | 3,964 |  |  | 19,048 |
Other comprehensive income (loss) | 16,886 |  |  | 3,964 |  |  | 20,850 |
Comprehensive income (loss), including noncontrolling interests | 27,673 |  |  | 1,451 |  |  | 29,124 |
Comprehensive income (loss) attributable to Flowserve Corporation | $ | 25,594 |  |  | $ | 1,451 |  |  | $ | 27,045 |
_______________________________________ (1) Adjustment relates to cumulative effect of the accounting errors that were corrected in the periods, as outlined above. (2) Adjustment relates to the accounting error involving foreign currency transactions.
| Six Months Ended June 30, 2020
(Amounts in thousands, except per share data) | As Reported |  | Adjustments |  | As Revised
Sales | $ | 1,819,422 |  |  | $ | (896) |  |  | $ | 1,818,526 |
Cost of sales(1) | (1,286,285) |  |  | 3,925 |  |  | (1,282,360) |
Gross profit | 533,137 |  |  | 3,029 |  |  | 536,166 |
Selling, general and administrative expense(2) | (470,980) |  |  | (3,814) |  |  | (474,794) |
Operating income | 68,440 |  |  | (785) |  |  | 67,655 |
Interest expense | (25,863) |  |  | (35) |  |  | (25,898) |
Other income (expense), net(3) | 8,521 |  |  | 10,774 |  |  | 19,295 |
Earnings before income taxes | 53,996 |  |  | 9,954 |  |  | 63,950 |
Provision for income taxes | (41,719) |  |  | 266 |  |  | (41,453) |
Net earnings, including noncontrolling interests | 12,277 |  |  | 10,220 |  |  | 22,497 |
Net earnings (loss) attributable to Flowserve Corporation | $ | 8,035 |  |  | $ | 10,219 |  |  | $ | 18,254 |
Net earnings (loss) per share attributable to Flowserve Corporation common shareholders: |  |  |  |  |
Basic | $ | 0.06 |  |  | $ | 0.08 |  |  | $ | 0.14 |
Diluted | 0.06 |  |  | 0.08 |  |  | 0.14 |
_______________________________________ (1) Adjustment primarily relates to non-restructuring realignment charges associated with workforce reductions in our 2020 Realignment Program. (2) Adjustment primarily relates to asbestos settlement and defense costs for related legal fees. (3) Adjustment relates to the accounting error involving foreign currency transactions.
| Six Months Ended June 30, 2020
(Amounts in thousands) | As Reported |  | Adjustments |  | As Revised
Net earnings, including noncontrolling interests(1) | $ | 12,277 |  |  | $ | 10,220 |  |  | $ | 22,497 |
Other comprehensive income (loss): |  |  |  |  |
Foreign currency translation adjustments, net of taxes(2) | (66,269) |  |  | (10,744) |  |  | (77,013) |
Other comprehensive income (loss) | (58,104) |  |  | (10,744) |  |  | (68,848) |
Comprehensive income (loss), including noncontrolling interests | (45,827) |  |  | (524) |  |  | (46,351) |
Comprehensive income (loss) attributable to Flowserve Corporation | $ | (50,845) |  |  | $ | (524) |  |  | $ | (51,369) |
_______________________________________ (1) Adjustment relates to cumulative effect of the accounting errors that were corrected in the periods, as outlined above. (2) Adjustment relates to the accounting error involving foreign currency transactions. The following tables present the impact to affected line items on our condensed consolidated financial statements for the periods indicated for the correction of the accounting error involving foreign currency transactions identified in the first quarter of 2021:
| September 30, 2020
(Amounts in thousands) | As Reported |  | Adjustments(1) |  | As Revised
Retirement obligations and other liabilities | $ | 541,721 |  |  | $ | 1,500 |  |  | $ | 543,221 |
Retained earnings | 3,625,291 |  |  | 14,936 |  |  | 3,640,227 |
Accumulated other comprehensive loss | (618,856) |  |  | (16,436) |  |  | (635,292) |
Total Flowserve Corporation shareholders’ equity | 1,673,421 |  |  | (1,500) |  |  | 1,671,921 |
Total equity | 1,703,843 |  |  | (1,500) |  |  | 1,702,343 |
_______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions.
| Three Months Ended September 30, 2020
(Amounts in thousands, except per share data) | As Reported |  | Adjustments(1) |  | As Revised
Other income (expense), net | $ | (963) |  |  | $ | 5,636 |  |  | $ | 4,673 |
Earnings before income taxes | 72,322 |  |  | 5,636 |  |  | 77,958 |
Provision for income taxes | (18,672) |  |  | (524) |  |  | (19,196) |
Net earnings, including noncontrolling interests | 53,650 |  |  | 5,112 |  |  | 58,762 |
Net earnings attributable to Flowserve Corporation | $ | 51,003 |  |  | $ | 5,112 |  |  | $ | 56,115 |
Net earnings per share attributable to Flowserve Corporation common shareholders: |  |  |  |  |
Basic | $ | 0.39 |  |  | $ | 0.04 |  |  | $ | 0.43 |
Diluted | 0.39 |  |  | 0.04 |  |  | 0.43 |
_______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions.
| Three Months Ended September 30, 2020
(Amounts in thousands) | As Reported |  | Adjustments(1) |  | As Revised
Net earnings, including noncontrolling interests | $ | 53,650 |  |  | $ | 5,112 |  |  | $ | 58,762 |
Other comprehensive income (loss): |  |  |  |  |
Foreign currency translation adjustments, net of taxes | 25,204 |  |  | (5,649) |  |  | 19,555 |
Other comprehensive income (loss) | 24,269 |  |  | (5,649) |  |  | 18,620 |
Comprehensive income (loss), including noncontrolling interests | 77,919 |  |  | (537) |  |  | 77,382 |
Comprehensive income (loss) attributable to Flowserve Corporation | $ | 75,276 |  |  | $ | (537) |  |  | $ | 74,739 |
_______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions.
(Amounts in thousands, except per share data) | Nine Months Ended September 30, 2020
| As Reported |  | Adjustments(1) |  | As Revised
Other income (expense), net | $ | 7,558 |  |  | $ | 16,411 |  |  | $ | 23,969 |
Earnings before income taxes | 125,498 |  |  | 16,411 |  |  | 141,909 |
Provision for income taxes | (59,175) |  |  | (1,475) |  |  | (60,650) |
Net earnings, including noncontrolling interests | 66,323 |  |  | 14,936 |  |  | 81,259 |
Net earnings attributable to Flowserve Corporation | $ | 59,433 |  |  | $ | 14,936 |  |  | $ | 74,369 |
Net earnings per share attributable to Flowserve Corporation common shareholders: |  |  |  |  |
Basic | $ | 0.46 |  |  | $ | 0.11 |  |  | $ | 0.57 |
Diluted | 0.45 |  |  | 0.12 |  |  | 0.57 |
_______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions.
| Nine Months Ended September 30, 2020
(Amounts in thousands) | As Reported |  | Adjustments(1) |  | As Revised
Net earnings, including noncontrolling interests | $ | 66,323 |  |  | $ | 14,936 |  |  | $ | 81,259 |
Other comprehensive income (loss): |  |  |  |  |
Foreign currency translation adjustments, net of taxes | (41,022) |  |  | (16,434) |  |  | (57,456) |
Other comprehensive income (loss) | (33,792) |  |  | (16,434) |  |  | (50,226) |
Comprehensive income (loss), including noncontrolling interests | 32,531 |  |  | (1,498) |  |  | 31,033 |
Comprehensive income (loss) attributable to Flowserve Corporation | $ | 24,869 |  |  | $ | (1,498) |  |  | $ | 23,371 |
_______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions.
| December 31, 2020
(Amounts in thousands) | As Reported |  | Adjustments(1) |  | As Revised
Retirement obligations and other liabilities | $ | 516,087 |  |  | $ | 1,479 |  |  | $ | 517,566 |
Retained earnings | 3,656,449 |  |  | 14,094 |  |  | 3,670,543 |
Accumulated other comprehensive loss | (594,052) |  |  | (15,573) |  |  | (609,625) |
Total Flowserve Corporation shareholders’ equity | 1,732,470 |  |  | (1,479) |  |  | 1,730,991 |
Total equity | 1,762,800 |  |  | (1,479) |  |  | 1,761,321 |
_______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions.
(Amounts in thousands, except per share data) | Three Months Ended December 31, 2020
| As Reported |  | Adjustments(1) |  | As Revised
Other income (expense), net | $ | (17,811) |  |  | $ | (931) |  |  | $ | (18,742) |
Earnings before income taxes | 61,314 |  |  | (931) |  |  | 60,383 |
Provision for income taxes | (856) |  |  | 89 |  |  | (767) |
Net earnings, including noncontrolling interests | 60,458 |  |  | (842) |  |  | 59,616 |
Net earnings attributable to Flowserve Corporation | $ | 56,893 |  |  | $ | (842) |  |  | $ | 56,051 |
Net earnings per share attributable to Flowserve Corporation common shareholders: |  |  |  |  |
Basic | $ | 0.44 |  |  | $ | (0.01) |  |  | $ | 0.43 |
Diluted | 0.43 |  |  | — |  |  | 0.43 |
______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions.
| Three Months Ended December 31, 2020
(Amounts in thousands) | As Reported |  | Adjustments(1) |  | As Revised
Net earnings, including noncontrolling interests | $ | 60,458 |  |  | $ | (842) |  |  | $ | 59,616 |
Other comprehensive income (loss): |  |  |  |  |
Foreign currency translation adjustments, net of taxes | 41,411 |  |  | 862 |  |  | 42,273 |
Other comprehensive income (loss) | 24,803 |  |  | 862 |  |  | 25,665 |
Comprehensive income (loss), including noncontrolling interests | 85,261 |  |  | 20 |  |  | 85,281 |
Comprehensive income (loss) attributable to Flowserve Corporation | $ | 81,698 |  |  | $ | 20 |  |  | $ | 81,718 |
______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions.
(Amounts in thousands, except per share data) | Year Ended December 31, 2020
| As Reported |  | Adjustments(1) |  | As Revised
Other income (expense), net | $ | (10,254) |  |  | $ | 15,480 |  |  | $ | 5,226 |
Earnings before income taxes | 186,812 |  |  | 15,480 |  |  | 202,292 |
Provision for income taxes | (60,031) |  |  | (1,386) |  |  | (61,417) |
Net earnings, including noncontrolling interests | 126,781 |  |  | 14,094 |  |  | 140,875 |
Net earnings attributable to Flowserve Corporation | $ | 116,326 |  |  | $ | 14,094 |  |  | $ | 130,420 |
Net earnings per share attributable to Flowserve Corporation common shareholders: |  |  |  |  |
Basic | $ | 0.89 |  |  | $ | 0.11 |  |  | $ | 1.00 |
Diluted | 0.89 |  |  | 0.11 |  |  | 1.00 |
______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions.
| Year Ended December 31, 2020
(Amounts in thousands) | As Reported |  | Adjustments(1) |  | As Revised
Net earnings, including noncontrolling interests | $ | 126,781 |  |  | $ | 14,094 |  |  | $ | 140,875 |
Other comprehensive income (loss): |  |  |  |  |
Foreign currency translation adjustments, net of taxes | 388 |  |  | (15,571) |  |  | (15,183) |
Other comprehensive income (loss) | (8,991) |  |  | (15,571) |  |  | (24,562) |
Comprehensive income (loss), including noncontrolling interests | 117,790 |  |  | (1,477) |  |  | 116,313 |
Comprehensive income (loss) attributable to Flowserve Corporation | $ | 106,565 |  |  | $ | (1,477) |  |  | $ | 105,088 |
______________________________________ (1) Adjustments relate to the accounting error involving foreign currency transactions.
| Six Months Ended June 30, 2020
(Amounts in thousands) | As Reported |  | Adjustments |  | As Revised
Net cash flows provided (used) by operating activities (1) | $ | 21,231 |  |  | $ | (1,048) |  |  | $ | 20,183 |
Net cash flows provided (used) by investing activities (2) | (21,161) |  |  | 2,899 |  |  | (18,262) |
Net cash flows provided (used) by financing activities(3) | (91,881) |  |  | (1,851) |  |  | (93,732) |
Cash and cash equivalents at end of period | 561,705 |  |  | — |  |  | 561,705 |
______________________________________ (1) Adjustment relates to cumulative effect of the accounting errors that were corrected in the periods, as outlined above. (2) Primarily related to adjustments resulting from the misclassification of Software as a service arrangements as property, plant and equipment rather than other assets, net, as prescribed by ASU 2018-15. (3) Primarily resulting from the misclassification of non-cash items under proceeds and payments under other financing arrangements in financing activities, rather than other assets, net, in operating activities.
| Nine Months Ended September 30, 2020
(Amounts in thousands) | As Reported |  | Adjustments |  | As Revised
Net cash flows provided (used) by operating activities (1) | $ | 115,629 |  |  | $ | (1,380) |  |  | $ | 114,249 |
Net cash flows provided (used) by investing activities (1) | (34,160) |  |  | 1,495 |  |  | (32,665) |
Net cash flows provided (used) by financing activities | 178,972 |  |  | (115) |  |  | 178,857 |
Cash and cash equivalents at end of period | 921,178 |  |  | — |  |  | 921,178 |
_______________________________________ (1) Primarily related to adjustments resulting from the misclassification of Software as a service arrangements as property, plant and equipment rather than other assets, net, as prescribed by ASU 2018-15.

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- Definition Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22663-107794 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22644-107794 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22658-107794 + Details
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