10-Q

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 June 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)

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,	Texas	75039
(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 Value	FLS				New 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 filer	☑	Accelerated filer	☐	Non-accelerated filer	☐
Smaller reporting company	☐	Emerging 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 July 22, 2022 there were 130,693,455 shares of the issuer’s common stock outstanding.

FLOWSERVE CORPORATION

FORM 10-Q

TABLE OF CONTENTS

	Page
	No.
PART I – FINANCIAL INFORMATION
Item 1.       Financial Statements
Condensed Consolidated Statements of Income and Condensed Consolidated Statements of Comprehensive Income (Loss) – Three Months Ended June 30, 2022 and 2021 (unaudited)	1
Condensed Consolidated Statements of Income and Condensed Consolidated Statements of Comprehensive Income (Loss) – Six Months Ended June 30, 2022 and 2021 (unaudited)	2
Condensed Consolidated Balance Sheets – Condensed Consolidated Balance Sheets – June 30, 2022 and December 31, 2021 (unaudited)	3
Condensed Consolidated Statements of Shareholders' Equity – Three Months Ended June 30, 2022 and 2021 (unaudited)	4
Condensed Consolidated Statements of Stockholders' Equity – Six Months Ended June, 2022 and 2021 (unaudited)	5
Condensed Consolidated Statements of Cash Flows – Six Months Ended June 30, 2022 and 2021 (unaudited)	6
Notes to Condensed Consolidated Financial Statements (unaudited)	7
Item 2.       Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
Item 3.       Quantitative and Qualitative Disclosures About Market Risk	39
Item 4.       Controls and Procedures	39
PART II – OTHER INFORMATION
Item 1.       Legal Proceedings	40
Item 1A.    Risk Factors	40
Item 2.       Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 3. Defaults Upon Senior Securities	42
Item 4. Mine Safety Disclosures	42
Item 5. Other Information	42
Item 6.       Exhibits	42
SIGNATURES	43

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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 June 30,
	2022		2021
Sales	$	882,222	$	898,178
Cost of sales	(632,393)		(619,940)
Gross profit	249,829		278,238
Selling, general and administrative expense	(194,606)		(210,789)
Gain on sale of business	—		1,806
Net earnings from affiliates	5,109		2,907
Operating income	60,332		72,162
Interest expense	(11,062)		(14,322)
Interest income	854		465
Other income (expense), net	7,589		(7,850)
Earnings before income taxes	57,713		50,455
Provision for income taxes	(11,618)		(2,711)
Net earnings, including noncontrolling interests	46,095		47,744
Less: Net earnings attributable to noncontrolling interests	(1,318)		(2,390)
Net earnings attributable to Flowserve Corporation	$	44,777	$	45,354
Net earnings per share attributable to Flowserve Corporation common shareholders:
Basic	$	0.34	$	0.35
Diluted	0.34		0.35
Weighted average shares - basic	130,666		130,305
Weighted average shares - diluted	131,245		130,804

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(Amounts in thousands)	Three Months Ended June 30,
	2022		2021
Net earnings, including noncontrolling interests	$	46,095	$	47,744
Other comprehensive income (loss):
Foreign currency translation adjustments, net of taxes of $(7,299) and $(6,401), respectively	(64,160)		13,998
Pension and other postretirement effects, net of taxes of $(457) and $(472), respectively	6,570		2,059
Cash flow hedging activity, net of taxes of $(9) and $(5), respectively	29		15
Other comprehensive income (loss)	(57,561)		16,072
Comprehensive income (loss), including noncontrolling interests	(11,466)		63,816
Comprehensive (income) loss attributable to noncontrolling interests	(1,321)		(2,403)
Comprehensive income (loss) attributable to Flowserve Corporation	$	(12,787)	$	61,413

See accompanying notes to condensed consolidated financial statements.

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FLOWSERVE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Amounts in thousands, except per share data)	Six Months Ended June 30,
	2022		2021
Sales	$	1,703,280	$	1,755,486
Cost of sales	(1,243,803)		(1,226,348)
Gross profit	459,477		529,138
Selling, general and administrative expense	(400,816)		(409,104)
Gain on sale of business	—		1,806
Net earnings from affiliates	9,039		6,425
Operating income	67,700		128,265
Interest expense	(21,755)		(31,101)
Loss on extinguishment of debt	—		(7,610)
Interest income	1,797		1,067
Other income (expense), net	(524)		(19,213)
Earnings before income taxes	47,218		71,408
Provision for income taxes	(14,800)		(6,503)
Net earnings, including noncontrolling interests	32,418		64,905
Less: Net earnings attributable to noncontrolling interests	(3,458)		(5,471)
Net earnings attributable to Flowserve Corporation	$	28,960	$	59,434
Net earnings per share attributable to Flowserve Corporation common shareholders:
Basic	$	0.22	$	0.46
Diluted	0.22		0.45
Weighted average shares - basic	130,554		130,366
Weighted average shares - diluted	131,148		130,905

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

(Amounts in thousands)	Six Months Ended June 30,
	2022		2021
Net earnings, including noncontrolling interests	$	32,418	$	64,905
Other comprehensive income (loss):
Foreign currency translation adjustments, net of taxes of $(20,605) and $(5,747), respectively	(80,904)		3,109
Pension and other postretirement effects, net of taxes of $(711) and $(942), respectively	10,157		6,318
Cash flow hedging activity, net of taxes of $(18) and $(67), respectively	58		217
Other comprehensive income (loss)	(70,689)		9,644
Comprehensive income (loss), including noncontrolling interests	(38,271)		74,549
Comprehensive (income) loss attributable to noncontrolling interests	(4,798)		(5,633)
Comprehensive income (loss) attributable to Flowserve Corporation	$	(43,069)	$	68,916

See accompanying notes to condensed consolidated financial statements.

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FLOWSERVE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Amounts in thousands, except par value)	June 30,		December 31,
	2022		2021
ASSETS
Current assets:
Cash and cash equivalents	$	458,345	$	658,452
Accounts receivable, net of allowance for expected credit losses of $78,776 and $74,336, respectively	735,895		739,210
Contract assets, net of allowance for expected credit losses of $3,704 and $2,393, respectively	197,128		195,598
Inventories, net	748,920		678,287
Prepaid expenses and other	140,639		117,130
Total current assets	2,280,927		2,388,677
Property, plant and equipment, net of accumulated depreciation of $1,150,876 and $1,191,823, respectively	487,299		515,927
Operating lease right-of-use assets, net	178,974		193,863
Goodwill	1,162,514		1,196,479
Deferred taxes	34,582		44,049
Other intangible assets, net	139,786		152,463
Other assets, net of allowance for expected credit losses of $67,968 and $67,696, respectively	298,650		258,310
Total assets	$	4,582,732	$	4,749,768
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	433,508	$	410,062
Accrued liabilities	374,575		445,092
Contract liabilities	205,175		202,965
Debt due within one year	46,306		41,058
Operating lease liabilities	32,153		32,628
Total current liabilities	1,091,717		1,131,805
Long-term debt due after one year	1,241,636		1,261,770
Operating lease liabilities	153,580		166,786
Retirement obligations and other liabilities	341,906		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 value	500,013		506,386
Retained earnings	3,666,935		3,691,023
Treasury shares, at cost – 46,377 and 46,794 shares, respectively	(2,037,839)		(2,057,706)
Deferred compensation obligation	6,921		7,214
Accumulated other comprehensive loss	(635,618)		(563,589)
Total Flowserve Corporation shareholders’ equity	1,721,403		1,804,319
Noncontrolling interests	32,490		33,026
Total equity	1,753,893		1,837,345
Total liabilities and equity	$	4,582,732	$	4,749,768

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 Earnings					Deferred Compensation Obligation		Accumulated Other Comprehensive Income (Loss)				Total Equity
	Common Stock							Treasury Stock							Non- controlling Interests
	Shares	Amount						Shares	Amount
	(Amounts in thousands)
Balance — April 1, 2022	176,793	$	220,991	$	496,151	$	3,648,678	(46,424)	$	(2,039,900)	$	7,122	$	(578,053)	$	36,066	$	1,791,055
Stock activity under stock plans	—	—		(2,024)		—		47	2,061		(201)		—		—		(164)
Stock-based compensation	—			5,886		—		—	—		—		—		—		5,886
Net earnings	—	—		—		44,777		—	—		—		—		1,318		46,095
Cash dividends declared	—	—		—		(26,520)		—	—		—		—		—		(26,520)
Other comprehensive income (loss), net of tax	—	—		—		—		—	—		—		(57,565)		4		(57,561)
Other, net	—	—		—		—		—	—		—		—		(4,898)		(4,898)
Balance — June 30, 2022	176,793	$	220,991	$	500,013	$	3,666,935	(46,377)	$	(2,037,839)	$	6,921	$	(635,618)	$	32,490	$	1,753,893
Balance — April 1, 2021	176,793	$	220,991	$	488,906	$	3,658,158	(46,496)	$	(2,045,937)	$	6,114	$	(616,200)	$	29,754	$	1,741,786
Stock activity under stock plans	—	—		(1,397)		—		1	107		963		—		—		(327)
Stock-based compensation	—	—		6,712		—		—	—		—		—		—		6,712
Net earnings	—	—		—		45,354		—	—		—		—		2,390		47,744
Cash dividends declared	—	—		—		(26,395)		—	—		—		—		—		(26,395)
Repurchases of common shares	—	—		—		—		(311)	(12,449)		—		—		—		(12,449)
Other comprehensive income (loss), net of tax	—	—		—		—		—	—		—		16,058		14		16,072
Other, net	—	—		—		—		—	—		—		(1)		(2,450)		(2,451)
Balance — June 30, 2021	176,793	$	220,991	$	494,221	$	3,677,117	(46,806)	$	(2,058,279)	$	7,077	$	(600,143)	$	29,708	$	1,770,692
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 Earnings					Deferred Compensation Obligation		Accumulated Other Comprehensive Income (Loss)				Total Equity
	Common Stock							Treasury Stock							Non- controlling Interests
	Shares	Amount						Shares	Amount
	(Amounts in thousands)
Balance — January 1, 2022	176,793	$	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	—	—		(23,270)		—		417	19,867		(293)		—		—		(3,696)
Stock-based compensation	—	—		16,897		—		—	—		—		—		—		16,897
Net earnings	—	—		—		28,960		—	—		—		—		3,458		32,418
Cash dividends declared	—	—		—		(53,048)		—	—		—		—		—		(53,048)
Other comprehensive income (loss), net of tax	—	—		—		—		—	—		—		(72,029)		1,340		(70,689)
Other, net	—	—		—		—		—	—		—		—		(5,334)		(5,334)
Balance — June 30, 2022	176,793	$	220,991	$	500,013	$	3,666,935	(46,377)	$	(2,037,839)	$	6,921	$	(635,618)	$	32,490	$	1,753,893
Balance — January 1, 2021	176,793	$	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	—	—		(24,478)		—		402	18,561		913		—		—		(5,004)
Stock-based compensation	—	—		16,472		—		—	—		—		—		—		16,472
Net earnings	—	—		—		59,434		—	—		—		—		5,471		64,905
Cash dividends declared	—	—		—		(52,860)		—	—		—		—		—		(52,860)
Repurchases of common shares	—	—		—		—		(440)	(17,531)		—		—		—		(17,531)
Other comprehensive income (loss), net of tax	—	—		—		—		—	—		—		9,482		162		9,644
Other, net	—	—		—		—		—	—		—		—		(6,255)		(6,255)
Balance — June 30, 2021	176,793	$	220,991	$	494,221	$	3,677,117	(46,806)	$	(2,058,279)	$	7,077	$	(600,143)	$	29,708	$	1,770,692
See accompanying notes to condensed consolidated financial statements.

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FLOWSERVE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Amounts in thousands)	Six Months Ended June 30,
	2022		2021
Cash flows – Operating activities:
Net earnings, including noncontrolling interests	$	32,418	$	64,905
Adjustments to reconcile net earnings to net cash provided (used) by operating activities:
Depreciation	40,034		44,491
Amortization of intangible and other assets	6,748		7,433
Loss on extinguishment of debt	—		7,610
Stock-based compensation	16,896		16,472
Foreign currency, asset write downs and other non-cash adjustments	(3,982)		12,460
Change in assets and liabilities:
Accounts receivable, net	(21,638)		14,285
Inventories, net	(96,737)		(30,784)
Contract assets, net	(7,705)		12,232
Prepaid expenses and other assets, net	(19,769)		(16,187)
Accounts payable	33,550		(41,146)
Contract liabilities	9,642		17,026
Accrued liabilities and income taxes payable	(65,773)		(37,123)
Retirement obligations and other	10,028		(2,761)
Net deferred taxes	(5,079)		(7,607)
Net cash flows provided (used) by operating activities	(71,367)		61,306
Cash flows – Investing activities:
Capital expenditures	(31,012)		(22,541)
Proceeds from disposal of assets and other	2,015		(1,299)
Net cash flows provided (used) by investing activities	(28,997)		(23,840)
Cash flows – Financing activities:
Payments on senior notes	—		(407,473)
Payments on term loan	(15,921)		—
Proceeds under other financing arrangements	1,029		1,386
Payments under other financing arrangements	(720)		(3,256)
Repurchases of common shares	—		(17,531)
Payments related to tax withholding for stock-based compensation	(4,497)		(5,777)
Payments of dividends	(52,267)		(52,168)
Other	(5,334)		(6,275)
Net cash flows provided (used) by financing activities	(77,710)		(491,094)
Effect of exchange rate changes on cash	(22,033)		(11,249)
Net change in cash and cash equivalents	(200,107)		(464,877)
Cash and cash equivalents at beginning of period	658,452		1,095,274
Cash and cash equivalents at end of period	$	458,345	$	630,397

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 June 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 six months ended June 30, 2022 and 2021 and condensed consolidated statements of cash flows for the six months ended June 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 June 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 six months of 2022, we continue to be challenged by macroeconomics and global economic impacts based on the disruption and uncertainties caused by COVID-19. As a result of the COVID-19 pandemic’s effect on oil prices, many of our large customers reduced capital expenditures and budgets in 2020. To date, while we have seen customer maintenance, repair and overhaul ("MRO") and aftermarket spending return to pre-pandemic levels, and although we are seeing momentum in project-based capital expenditures, such oil and gas business has yet to return to pre-pandemic levels. In addition, many of our suppliers have also experienced varying lengths of production and shipping delays related to the COVID-19 pandemic and its effects, some of which continue to exist in highly affected countries. These conditions have had an adverse effect 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 impact of COVID-19 we have also experienced labor constraints and inflationary pressures.

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.

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 continue throughout 2022.

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

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$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 a 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 concluded that the reserve recorded as of March 31, 2022 is sufficient and no changes to material reserves were needed.

The following table presents the above impacts of the Russia pre-tax charge:

	Six Months Ended June 30, 2022
(Amounts in thousands)	Flowserve Pump Division		Flow Control Division		Consolidated Total
Sales	$	(5,429)	$	(2)	$	(5,431)
Cost of sales	3,510		1,112		4,622
Gross loss	(8,939)		(1,114)		(10,053)
Selling, general and administrative expense	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.

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.

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.

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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 13% and 15% of total revenue for the three month period ended June 30, 2022 and 2021, respectively, and 12% and 16% for the six month period ended June 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 87% and 85% of total revenue for the three month period ended June 30, 2022 and 2021, respectively, and 88% and 84% for the six month period ended June 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 June 30, 2022
(Amounts in thousands)	FPD		FCD		Total
Original Equipment	$	212,760	$	198,597	$	411,357
Aftermarket	401,665		69,200		470,865
	$	614,425	$	267,797	$	882,222
	Three Months Ended June 30, 2021
	FPD		FCD		Total
Original Equipment	$	220,387	$	214,097	$	434,484
Aftermarket	397,047		66,647		463,694
	$	617,434	$	280,744	$	898,178

	Six Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Total
Original Equipment	$	413,100	$	381,439	$	794,539
Aftermarket	775,312		133,429		908,741
	$	1,188,412	$	514,868	$	1,703,280
	Six Months Ended June 30, 2021
	FPD		FCD		Total
Original Equipment	$	434,541	$	406,817	$	841,358
Aftermarket	785,059		129,069		914,128
	$	1,219,600	$	535,886	$	1,755,486

Our customer sales are diversified geographically. The following tables present our revenues disaggregated by geography, based on the shipping addresses of our customers:

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	Three Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Total
North America(1)	$	265,657	$	119,791	$	385,448
Latin America(2)	48,294		4,955		53,249
Middle East and Africa	84,935		22,049		106,984
Asia Pacific	97,557		72,418		169,975
Europe	117,982		48,584		166,566
	$	614,425	$	267,797	$	882,222
	Three Months Ended June 30, 2021
	FPD		FCD		Total
North America(1)	$	243,611	$	98,118	$	341,729
Latin America(2)	52,219		8,879		61,098
Middle East and Africa	69,662		26,530		96,192
Asia Pacific	119,375		88,944		208,319
Europe	132,567		58,273		190,840
	$	617,434	$	280,744	$	898,178

	Six Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Total
North America(1)	$	504,368	$	227,429	$	731,797
Latin America(2)	95,914		10,504		106,418
Middle East and Africa	156,636		43,398		200,034
Asia Pacific	199,156		140,209		339,365
Europe	232,338		93,328		325,666
	$	1,188,412	$	514,868	$	1,703,280
	Six Months Ended June 30, 2021
	FPD		FCD		Total
North America(1)	$	467,582	$	188,368	$	655,950
Latin America(2)	94,256		15,694		109,950
Middle East and Africa	152,207		54,226		206,433
Asia Pacific	244,027		167,600		411,627
Europe	261,528		109,998		371,526
	$	1,219,600	$	535,886	$	1,755,486

__________________________________

(1) North America represents the United States and Canada.

(2) Latin America includes Mexico.

On June 30, 2022, the aggregate transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations was approximately $562 million. We estimate recognition of approximately $258 million of this amount as revenue in the remainder of 2022 and an additional $304 million in 2023 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.

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The following tables present beginning and ending balances of contract assets and contract liabilities, current and long-term, for the six months ended June 30, 2022 and 2021:

(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, 2022	$	195,598	$	426	$	202,965	$	464
Revenue recognized that was included in contract liabilities at the beginning of the period	—		—		(118,177)		—
Revenue recognized in the period in excess of billings	256,608		1,659		—		—
Billings arising during the period in excess of revenue recognized	—		—		122,502		—
Amounts transferred from contract assets to receivables	(246,405)		(380)		230		—
Currency effects and other, net	(8,673)		(1,671)		(2,345)		(19)
Ending balance, June 30, 2022	$	197,128	$	34	$	205,175	$	445

(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	—		—		(112,835)		—
Revenue recognized in the period in excess of billings	321,040		54		—		—
Billings arising during the period in excess of revenue recognized	—		—		126,591		—
Amounts transferred from contract assets to receivables	(326,634)		(28)		—		—
Currency effects and other, net	(9,909)		(86)		1,109		(19)
Ending balance, June 30, 2021	$	262,231	$	1,079	$	209,092	$	803

_____________________________________

(1) Included in other assets, net.

(2) Included in retirement obligations and other liabilities.

3.Allowance for Expected Credit Losses

The allowance for credit losses is an estimate of the credit losses expected over the life of our financial assets and instruments. We assess and measure expected credit losses on a collective basis when similar risk characteristics exist, including market, geography, credit risk and remaining duration. Financial assets and instruments that do not share risk characteristics are evaluated on an individual basis. Our estimate of the allowance is assessed and quantified using internal and external valuation information relating to past events, current conditions and reasonable and supportable forecasts over the contractual terms of an asset.

Our primary exposure to expected credit losses is through our trade receivables and contract assets. For these financial assets, we record an allowance for expected credit losses that, when deducted from the gross asset balance, presents the net amount expected to be collected. Primarily, our experience of historical credit losses provides the basis for our estimation of the allowance. We estimate the allowance based on an aging schedule and according to historical losses as determined from our history of billings and collections. Additionally, we adjust the allowance for factors that are specific to our customers’ credit risk such as financial difficulties, liquidity issues, insolvency, and country and geopolitical risks. We also consider both the current and forecasted macroeconomic conditions as of the reporting date. As identified and needed, we adjust the allowance and recognize adjustments in the income statement each period. Trade receivables are written off against the allowance in the period when the receivable is deemed to be uncollectible. Subsequent recoveries of previously written off amounts are reflected as a reduction to credit impairment losses in the condensed consolidated statements of income.

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Contract assets represent a conditional right to consideration for satisfied performance obligations that become a receivable when the conditions are satisfied. Generally, contract assets are recorded when contractual billing schedules differ from revenue recognition based on timing and are managed through the revenue recognition process. Based on our historical credit loss experience, the current expected credit loss for contract assets is estimated to be approximately 1% of the asset balance.

The following table presents the changes in the allowance for expected credit losses for our trade receivables and contract assets for the six months ended June 30, 2022 and 2021:

(Amounts in thousands)	Trade receivables		Contract assets
Beginning balance, January 1, 2022	$	74,336	$	2,393
Charges to cost and expenses, net of recoveries	6,763		1,338
Write-offs	(600)		—
Currency effects and other, net	(1,723)		(27)
Ending balance, June 30, 2022	$	78,776	$	3,704
Beginning balance, January 1, 2021	$	75,176	$	3,205
Charges to cost and expenses, net of recoveries	865		—
Write-offs	(2,015)		—
Currency effects and other, net	756		(167)
Ending balance, June 30, 2021	$	74,782	$	3,038

Our allowance on long-term receivables, included in other assets, net, represent receivables with collection periods longer than 12 months and the balance primarily consists of reserved receivables associated with the national oil company in Venezuela. The following table presents the changes in the allowance for long-term receivables for the six months ended June 30, 2022 and 2021:

(Amounts in thousands)	2022		2021
Balance at January 1	$	67,696	$	67,842
Currency effects and other, net	272		(72)
Balance at June 30	$	67,968	$	67,770

We also have exposure to credit losses from off-balance sheet exposures, such as financial guarantees and standby letters of credit, where we believe the risk of loss is immaterial to our financial statements as of June 30, 2022.

4.Stock-Based Compensation Plans

We maintain the Flowserve Corporation 2020 Long-Term Incentive Plan (“2020 Plan”), which is a shareholder approved plan authorizing the issuance of 12,500,000 shares of our common stock in the form of restricted shares, restricted share units and performance-based units (collectively referred to as "Restricted Shares"), incentive stock options, non-statutory stock options, stock appreciation rights and bonus stock. Of the shares of common stock authorized under the 2020 Plan, 9,669,056 were available for issuance as of June 30, 2022. Restricted Shares primarily vest over a three year period. Restricted Shares granted to employees who retire and have achieved at least 55 years of age and 10 years of service continue to vest over the original vesting period ("55/10 Provision"). As of June 30, 2022, 114,943 stock options were outstanding. No stock options were granted or vested during the six months ended June 30, 2022 and 2021.

 Restricted Shares – Awards of Restricted Shares are valued at the closing market price of our common stock on the date of grant. The unearned compensation is amortized to compensation expense over the vesting period of the restricted shares, except for awards related to the 55/10 Provision which are expensed in the period granted. We had unearned compensation of $34.0 million and $24.2 million at June 30, 2022 and December 31, 2021, respectively, which is expected to be recognized over a remaining weighted-average period of approximately one year. These amounts will be recognized into net earnings in prospective periods as the awards vest. The total fair value of Restricted Shares vested during the three months ended June 30, 2022 and 2021 was $1.9 million and $0.9 million, respectively. The total fair value of Restricted Shares vested during the six months ended June 30, 2022 and 2021 was $22.5 million and $24.4 million, respectively.

We recorded stock-based compensation expense of $4.6 million ($5.9 million pre-tax) and $5.1 million ($6.7 million pre-tax) for the three months ended June 30, 2022 and 2021, respectively. We recorded stock-based compensation expense of $13.1

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million ($16.9 million pre-tax) and $12.7 million ($16.5 million pre-tax) for the six months ended June 30, 2022 and 2021, respectively.

The following table summarizes information regarding Restricted Shares:

	Six Months Ended June 30, 2022
	Shares	Weighted Average Grant-Date Fair Value
Number of unvested shares:
Outstanding as of January 1, 2022	1,671,011	$	43.06
Granted	967,278	32.93
Vested	(523,055)	43.03
Forfeited	(214,147)	45.72
Outstanding as of June 30, 2022	1,901,087	$	37.62

Unvested Restricted Shares outstanding as of June 30, 2022 included approximately 481,000 units with performance-based vesting provisions issuable in common stock and vest upon the achievement of pre-defined performance metrics. Targets for outstanding performance awards are based on our average return on invested capital, total shareholder return ("TSR") or free cash flow as a percent of net income over a three-year period. Performance units issued in 2022 and 2021 include a secondary measure, relative TSR, which can increase or decrease the number of vesting units by 15% depending on the Company's performance versus peers. Performance units issued in 2022 and 2021 have a vesting percentage between 0% and 230%. Performance units issued in 2020 have a vesting percentage between 0% and 200%. Compensation expense is recognized ratably over a cliff-vesting period of 36 months, based on the fair value of our common stock on the date of grant, adjusted for actual forfeitures. During the performance period, earned and unearned compensation expense is adjusted based on changes in the expected achievement of the performance targets for all performance-based units granted except for the TSR-based units. Vesting provisions range from 0 to approximately 1,059,000 shares based on performance targets. As of June 30, 2022, we estimate vesting of approximately 410,000 shares based on expected achievement of performance targets.

5.Derivative Instruments and Hedges

Our risk management and foreign currency derivatives and hedging policy specifies the conditions under which we may enter into derivative contracts. See Notes 1 and 9 to our consolidated financial statements included in our 2021 Annual Report and Note 7 of this Quarterly Report for additional information on our derivatives. We enter into foreign exchange forward contracts to hedge our cash flow risks associated with transactions denominated in currencies other than the local currency of the operation engaging in the transaction. We have not elected hedge accounting for our foreign exchange forward contracts and the changes in the fair values are recognized immediately in our condensed consolidated statements of income.

Foreign exchange forward contracts with third parties had a notional value of $413.9 million and $425.2 million at June 30, 2022 and December 31, 2021, respectively. At June 30, 2022, the length of foreign exchange forward contracts currently in place ranged from 21 days to 32 months.

We are exposed to risk from credit-related losses resulting from nonperformance by counterparties to our financial instruments. We perform credit evaluations of our counterparties under foreign exchange forward contracts agreements and expect all counterparties to meet their obligations. We have not experienced credit losses from our counterparties.

The fair values of foreign exchange forward contracts are summarized below:

	June 30,		December 31,
(Amounts in thousands)	2022		2021
Current derivative assets	$	831	$	740
Noncurrent derivative assets	—		2
Current derivative liabilities	5,050		2,924
Noncurrent derivative liabilities	112		82

Current and noncurrent derivative assets are reported in our condensed consolidated balance sheets in prepaid expenses and other and other assets, net, respectively. Current and noncurrent derivative liabilities are reported in our condensed consolidated balance sheets in accrued liabilities and retirement obligations and other liabilities, respectively.

The impact of net changes in the fair values of foreign exchange forward contracts are summarized below:

	Three Months Ended June 30,				Six Months Ended June 30,
(Amounts in thousands)	2022		2021		2022		2021
Gains (losses) recognized in income	$	2,592	$	(4,312)	$	233	$	1,793

Gains and losses recognized in our condensed consolidated statements of income for foreign exchange forward contracts are classified as other income (expense), net.

As a means of managing the volatility of foreign currency exposure with the Euro/U.S. dollar exchange rate, we enter into cross-currency swap agreements as a hedge of our Euro investment in certain of our international subsidiaries. Accordingly, on April 14, 2021 and March 9, 2021, we entered into cross currency swap agreements, with both having termination dates of October 1, 2030 and the March 9, 2021 cross currency swap having an early termination date of March 11, 2025. Also, during the third quarter of 2020 we entered into a cross currency swap agreement with termination date of October 1, 2030 and an early termination date of September 22, 2025. The swap agreements are designated as net investment hedges and as of June 30, 2022 the combined notional value of these swaps was €423.2 million. The swaps are classified as Level II under the fair value hierarchy.

The fair values of our cross-currency swaps are summarized below:

	June 30,		December 31,
(Amounts in thousands)	2022		2021
Other assets, net	$	68,990	$	23,129

We exclude the interest accruals on the swaps from the assessment of hedge effectiveness and recognize the interest accruals in earnings within interest expense. For each reporting period, the change in the fair value of the swaps attributable to changes in the spot rate and differences between the change in the fair value of the excluded components and the amounts recognized in earnings under the swap accrual process are reported in accumulated other comprehensive loss ("AOCL") on our consolidated balance sheet. For the three and six months ending June 30, 2022, an interest accrual of $2.1 million and $4.2 million, respectively, was recognized within interest expense in our condensed consolidated statements of income. For the three months and six months ending June 30, 2021, an interest accrual of $1.8 million and $2.4 million, respectively, was recognized within interest expense.

The cumulative net investment hedge (gains) losses, net of deferred taxes, under cross-currency swaps recorded in AOCL on our condensed consolidated balance sheet are summarized below:

	Three Months Ended June 30,				Six Months Ended June 30,
(Amounts in thousands)	2022		2021		2022		2021
(Gain) loss-included component (1)	$	(18,870)	$	1,798	$	(44,256)	$	185
(Gain) loss-excluded component (2)	(7,634)		(11,749)		(8,508)		3,890
(Gain) loss recognized in AOCL	$	(26,504)	$	(9,951)	$	(52,764)	$	4,075

_____________________________________________

(1) Change in the fair value of the swaps attributable to changes in spot rates.

(2) Change in the fair value of the swaps due to changes other than those attributable to spot rates.

In March 2015, we designated €255.7 million of our 1.25% EUR 2022 Senior Notes ("2022 Euro Senior Notes") as a net investment hedge of our Euro investment in certain of our international subsidiaries. On September 22, 2020, we increased the designated hedged value on the 2022 Euro Senior Notes to €336.3 million, which reflected the remaining balance of the 2022 Euro Senior Notes. For each reporting period, the change in the carrying value due to the remeasurement of the effective portion was reported in AOCL on our condensed consolidated balance sheet and the remaining change in the carrying value of the ineffective portion, if any, was recognized in other income (expense), net in our condensed consolidated statements of income. As a result of the redemption of our 2022 Euro Senior Notes in the first quarter of 2021, we dedesignated the hedged value of our net investment hedge.

Prior to the dedesignation, the cumulative impact recorded in AOCL on our condensed consolidated balance sheet from the change in carrying value due to the remeasurement of the effective portion of the net investment hedge is summarized below:

	Three Months Ended June 30,				Six Months Ended June 30,
(Amounts in thousands)	2022		2021		2022		2021
Loss recognized in AOCL	$	—	$	—	$	—	$	29,554

We use the spot method to measure the effectiveness of our net investment hedges and evaluate the effectiveness on a prospective basis at the beginning of each quarter. We did not record any ineffectiveness during the three and six months ended June 30, 2022 and 2021, respectively.

6.Debt

Debt, including finance lease obligations, net of discounts and debt issuance costs, consisted of:

	June 30,		December 31,
(Amounts in thousands, except percentages)	2022		2021
3.50% USD Senior Notes due October 1, 2030, net of unamortized discount and debt issuance costs of $5,335 and $5,611, respectively	$	494,665	$	494,389
2.80% USD Senior Notes due January 15, 2032, net of unamortized discount and debt issuance costs of $6,003 and $6,273, respectively	493,997		493,727
Term Loan Facility, interest rate of 3.50% at June 30, 2022 and 1.45% at December 31, 2021, net of debt issuance costs of $540 and $639, respectively	276,960		291,861
Finance lease obligations and other borrowings	22,320		22,851
Debt and finance lease obligations	1,287,942		1,302,828
Less amounts due within one year	46,306		41,058
Total debt due after one year	$	1,241,636	$	1,261,770

Senior Notes

On March 19, 2021, we redeemed the remaining $400.9 million of our 2022 Euro Senior Notes and recorded a loss on early extinguishment of $7.6 million in the first quarter of 2021, which included the impact of a $6.6 million make-whole premium.

Senior Credit Facility

As discussed in Note 13 to our consolidated financial statements included in our 2021 Annual Report, we amended our credit agreement ("Amended and Restated Credit Agreement") under our Senior Credit Facility ("Credit Facility") with Bank of America, N.A. ("Administrative Agent") and the other lenders to provide greater flexibility in maintaining adequate liquidity and access to available borrowings. The Amended and Restated Credit Agreement, (i) retained, from the previous credit agreement, the $800.0 million unsecured Revolving Credit Facility, which includes a $750.0 million sublimit for the issuance of letters of credit and a $30.0 million sublimit for swing line loans, (ii) provides for an up to $300 million unsecured Term Loan Facility (the "Term Loan"), (iii) extends the maturity date of the agreement to September 13, 2026, (iv) reduces commitment fees, (v) extends net leverage ratio covenant definition through the maturity of the agreement, and (vi) provides the ability to make certain adjustments to the otherwise applicable commitment fee, interest rate and letter of credit fees based on the Company’s performance against to-be-established key performance indicators with respect to certain of the Company’s environmental, social and governance targets.

The interest rates per annum applicable to the Revolving Credit Facility are unchanged under the Amended and Restated Credit Agreement. The interest rates per annum applicable to the Credit Facility, other than with respect to swing line loans, are LIBOR plus between 1.000% to 1.750%, depending on our debt rating by either Moody’s Investors Service, Inc. ("Moody's") or Standard & Poor’s Financial Services LLC ("S&P"), or, at our option, the Base Rate (as defined in the Amended and Restated Credit Agreement) plus between 0.000% to 0.750% depending on our debt rating by either Moody’s or S&P. At June 30, 2022, the interest rate on the Revolving Credit Facility was LIBOR plus 1.375% in the case of LIBOR loans and the Base Rate plus 0.375% in the case of Base Rate loans. In addition, a commitment fee is payable quarterly in arrears on the daily unused portions of the Credit Facility. The commitment fee will be between 0.080% and 0.250% of unused amounts under the Credit Facility depending on our debt rating by either Moody’s or S&P. The commitment fee was 0.175% (per annum) during the three and six ended June 30, 2022.

Under the terms and conditions of the Amended and Restated Credit Agreement, interest rates per annum applicable to the Term Loan are stated as LIBOR plus between 0.875% to 1.625%, depending on the Company’s debt rating by either Moody’s

or S&P, or, at the option of the Company, the Base Rate plus between 0.000% to 0.625% depending on the Company’s debt rating by either Moody’s or S&P.

As of June 30, 2022 and December 31, 2021, we had no revolving loans outstanding and we had outstanding letters of credit of $66.2 million and $78.3 million at June 30, 2022 and December 31, 2021, respectively. After consideration of the financial covenants under our Senior Credit Facility and outstanding letters of credit, as of June 30, 2022, the amount available for borrowings was limited to $277.1 million. As of December 31, 2021, the amount available for borrowings under our Revolving Credit Facility was $614.2 million.

Our compliance with applicable financial covenants under the Senior Notes and Credit Facility are tested quarterly. We were in compliance with all applicable covenants as of June 30, 2022. We have scheduled repayments on our Term Loan of $7.5 million due in the third quarter of 2022 and $10.0 million due in each of the subsequent three quarters through June 30, 2023

7.Fair Value

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied. Assets and liabilities recorded at fair value in our condensed consolidated balance sheets are categorized by hierarchical levels based upon the level of judgment associated with the inputs used to measure their fair values. Recurring fair value measurements are limited to investments in derivative instruments. The fair value measurements of our derivative instruments are determined using models that maximize the use of the observable market inputs including interest rate curves and both forward and spot prices for currencies, and are classified as Level II under the fair value hierarchy. The fair values of our derivatives are included in Note 5.

The carrying value of our financial instruments as reflected in our condensed consolidated balance sheets approximates fair value, with the exception of our long-term debt. The estimated fair value of our long-term debt, excluding the Senior Notes, approximates the carrying value and is determined using Level II inputs under the fair value hierarchy. The carrying value of our debt is included in Note 6. The estimated fair value of our Senior Notes at June 30, 2022 was $832.3 million compared to the carrying value of $988.7 million. The estimated fair value of the Senior Notes is based on Level I quoted market rates. The carrying amounts of our other financial instruments (e.g., cash and cash equivalents, accounts receivable, net, accounts payable and short-term debt) approximated fair value due to their short-term nature at June 30, 2022 and December 31, 2021.

8.Inventories

Inventories, net consisted of the following:

	June 30,		December 31,
(Amounts in thousands)	2022		2021
Raw materials	$	348,402	$	318,348
Work in process	273,677		242,143
Finished goods	223,211		213,096
Less: Excess and obsolete reserve	(96,370)		(95,300)
Inventories, net	$	748,920	$	678,287

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9.Earnings Per Share

The following is a reconciliation of net earnings of Flowserve Corporation and weighted average shares for calculating net earnings per common share. Earnings per weighted average common share outstanding was calculated as follows:

	Three Months Ended June 30,
(Amounts in thousands, except per share data)	2022		2021
Net earnings of Flowserve Corporation	$	44,777	$	45,354
Dividends on restricted shares not expected to vest	—		—
Earnings attributable to common and participating shareholders	$	44,777	$	45,354
Weighted average shares:
Common stock	130,626		130,279
Participating securities	40		26
Denominator for basic earnings per common share	130,666		130,305
Effect of potentially dilutive securities	579		499
Denominator for diluted earnings per common share	131,245		130,804
Earnings per common share:
Basic	$	0.34	$	0.35
Diluted	0.34		0.35

	Six Months Ended June 30,
(Amounts in thousands, except per share data)	2022		2021
Net earnings of Flowserve Corporation	$	28,960	$	59,434
Dividends on restricted shares not expected to vest	—		—
Earnings attributable to common and participating shareholders	$	28,960	$	59,434
Weighted average shares:
Common stock	130,518		130,342
Participating securities	36		24
Denominator for basic earnings per common share	130,554		130,366
Effect of potentially dilutive securities	594		539
Denominator for diluted earnings per common share	131,148		130,905
Earnings per common share:
Basic	$	0.22	$	0.46
Diluted	0.22		0.45

Diluted earnings per share above is based upon the weighted average number of shares as determined for basic earnings per share plus shares potentially issuable in conjunction with stock options and Restricted Shares.

10.Legal Matters and Contingencies

Asbestos-Related Claims

We are a defendant in a substantial number of lawsuits that seek to recover damages for personal injury allegedly caused by exposure to asbestos-containing products manufactured and/or distributed by our heritage companies in the past. Typically, these lawsuits have been brought against multiple defendants in state and federal courts. While the overall number of asbestos-related claims in which we or our predecessors have been named has generally declined in recent years, there can be no assurance that this trend will continue, or that the average cost per claim to us will not further increase. Asbestos-containing materials incorporated into any such products were encapsulated and used as internal components of process equipment, and we do not believe that significant emission of asbestos fibers occurred during the use of this equipment.

Our practice is to vigorously contest and resolve these claims, and we have been successful in resolving a majority of claims with little or no payment, other than legal fees. Activity related to asbestos claims during the periods indicated was as follows:

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	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
Beginning claims(1)	8,800	8,445	8,712	8,366
New claims	622	603	1,295	1,232
Resolved claims	(505)	(479)	(1,090)	(1,023)
Other(2)	—	(10)	—	(16)
Ending claims(1)	8,917	8,559	8,917	8,559

____________________

(1) Beginning and ending claims data in each period excludes inactive claims, as the Company considers it unlikely that inactive cases will be pursued further by the respective plaintiffs. A claim is classified as inactive either due to inactivity over a period of time or if designated as inactive by the applicable court.

(2) Represents the net change in claims as a result of the reclassification of active cases as inactive and inactive cases as active during the period indicated. Cases moved from active to inactive status are removed from the claims count without being accounted for as a "Resolved claim", and cases moved from inactive status to active status are added back to the claims count without being accounted for as a “New claim”.

The following table presents the changes in the estimated asbestos liability:

(Amounts in thousands)	2022		2021
Beginning balance, January 1,	$	94,423	$	99,530
Asbestos liability adjustments, net	—		1,000
Cash payment activity	(2,460)		(3,761)
Other, net	(1,819)		(1,284)
Ending balance, June 30,	$	90,144	$	95,485

During the three and six months ended June 30, 2022 the Company incurred expenses (net of insurance) of approximately $1.8 million and $3.6 million, respectively, compared to $1.8 million and $4.5 million, respectively, for the same periods in 2021 to defend, resolve or otherwise dispose of outstanding claims, including legal and other related expenses. These expenses are included within SG&A in our condensed consolidated statements of income.

The Company had cash inflows (outflows) (net of insurance and/or indemnity) to defend, resolve or otherwise dispose of outstanding claims, including legal and other related expenses of approximately $2.7 million and $(7.0) million, respectively, during the six months ended June 30, 2022 and 2021, respectively.

Historically, a high percentage of resolved claims have been covered by applicable insurance or indemnities from other companies, and we believe that a substantial majority of existing claims should continue to be covered by insurance or indemnities, in whole or in part.

We believe that our reserve for asbestos claims and the receivable for recoveries from insurance carriers that we have recorded for these claims reflects reasonable and probable estimates of these amounts. Our estimate of our ultimate exposure for asbestos claims, however, is subject to significant uncertainties, including the timing and number and types of new claims, unfavorable court rulings, judgments or settlement terms and ultimate costs to settle. Additionally, the continued viability of carriers may also impact the amount of probable insurance recoveries. We believe that these uncertainties could have a material adverse impact on our business, financial condition, results of operations and cash flows, though we currently believe the likelihood is remote.

Additionally, we have claims pending against certain insurers that, if resolved more favorably than reflected in the recorded receivables, would result in discrete gains in the applicable quarter.

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Other Claims

We are also a defendant in a number of other lawsuits, including product liability claims, that are insured, subject to the applicable deductibles, arising in the ordinary course of business, and we are also involved in other uninsured routine litigation incidental to our business. We currently believe none of such litigation, either individually or in the aggregate, is material to our business, operations or overall financial condition. However, litigation is inherently unpredictable, and resolutions or dispositions of claims or lawsuits by settlement or otherwise could have an adverse impact on our financial position, results of operations or cash flows for the reporting period in which any such resolution or disposition occurs.

Although none of the aforementioned potential liabilities can be quantified with absolute certainty except as otherwise indicated above, we have established or adjusted reserves covering exposures relating to contingencies, to the extent believed to be reasonably estimable and probable based on past experience and available facts. While additional exposures beyond these reserves could exist, they currently cannot be estimated. We will continue to evaluate and update the reserves as necessary and appropriate.

11.Pension and Postretirement Benefits

Components of the net periodic cost for pension and postretirement benefits for the three months ended June 30, 2022 and 2021 were as follows:

	U.S. Defined Benefit Plans				Non-U.S. Defined Benefit Plans				Postretirement Medical Benefits
(Amounts in millions)	2022		2021		2022		2021		2022		2021
Service cost	$	6.1	$	5.8	$	1.4	$	1.9	$	—	$	—
Interest cost	3.2		2.9		1.6		1.4		0.1		0.1
Expected return on plan assets	(6.2)		(6.2)		(1.3)		(1.7)		—		—
Amortization of unrecognized prior service cost and other costs	—		0.1		0.2		0.1		—		0.1
Amortization of unrecognized net loss	0.7		2.0		0.7		1.2		0.1		—
Net periodic cost recognized	$	3.8	$	4.6	$	2.6	$	2.9	$	0.2	$	0.2

Components of the net periodic cost for pension and postretirement benefits for the six months ended June 30, 2022 and 2021 were as follows:

	U.S. Defined Benefit Plans				Non-U.S. Defined Benefit Plans				Postretirement Medical Benefits
(Amounts in millions)	2022		2021		2022		2021		2022		2021
Service cost	$	12.4	$	12.6	$	3.0	$	3.7	$	—	$	—
Interest cost	6.6		6.0		3.3		2.8		0.2		0.2
Expected return on plan assets	(12.7)		(12.7)		(2.9)		(3.2)		—		—
Amortization of unrecognized prior service cost and other costs	0.1		0.1		0.3		0.2		0.1		0.1
Amortization of unrecognized net loss	1.7		3.9		1.4		2.3		0.1		—
Net periodic cost recognized	$	8.1	$	9.9	$	5.1	$	5.8	$	0.4	$	0.3

The components of net periodic cost for pension and postretirement benefits other than service costs are included in other income (expense), net in our condensed consolidated statements of income.

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12.Shareholders’ Equity

Dividends – Generally, our dividend date-of-record is in the last month of the quarter, and the dividend is paid the following month. Any subsequent dividends will be reviewed by our Board of Directors and declared in its discretion.

Dividends declared per share were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Dividends declared per share	$	0.20	$	0.20	$	0.40	$	0.40

Share Repurchase Program – In 2014, our Board of Directors approved a $500.0 million share repurchase authorization. Our share repurchase program does not have an expiration date and we reserve the right to limit or terminate the repurchase program at any time without notice.

We had no repurchases of shares of our outstanding common stock during three and six months ended June 30, 2022, compared to 311,000 and 440,000 shares, respectively, repurchased for $12.5 million and $17.5 million, respectively, for the same periods in 2021. As of June 30, 2022, we had $96.1 million of remaining capacity under our current share repurchase program.

13.Income Taxes

For the three months ended June 30, 2022, we earned $57.7 million before taxes and recorded a provision for income taxes of $11.6 million resulting in an effective tax rate of 20.1%. For the six months ended June 30, 2022, we earned $47.2 million before taxes and recorded a provision for income taxes of $14.8 million resulting in an effective tax rate of 31.4%. The effective tax rate varied from the U.S. federal statutory rate for the three ended June 30, 2022 primarily due to the net impact of foreign operations, partially offset by BEAT. The effective tax rate varied from the U.S. federal statutory rate for the six months ended June 30, 2022 primarily due to the current and anticipated tax impact of the Russia-Ukraine conflict on our business, partially offset by the net impact of foreign operations.

For the three months ended June 30, 2021, we earned $50.5 million before taxes and provided for income taxes of $2.7 million resulting in an effective tax rate of 5.4%. For the six months ended June 30, 2021, we earned $71.4 million before taxes and provided for income taxes of $6.5 million resulting in an effective tax rate of 9.1%. The effective tax rate varied from the U.S. federal statutory rate for the three months ended June 30, 2021 primarily due to the net impact of foreign operations and favorable resolution of audits in foreign jurisdictions. The effective tax rate varied from the U.S. federal statutory rate for the six months ended June 30, 2021, primarily due to the net impact of foreign operations, the reversal of certain deferred tax liabilities as a result of restructuring specific aspects of our global financing arrangements and higher withholding taxes related to transactions with and amongst various foreign subsidiaries.

As of June 30, 2022, the amount of unrecognized tax benefits increased by $6.3 million from December 31, 2021. With limited exception, we are no longer subject to U.S. federal income tax audits for years through 2017, state and local income tax audits for years through 2015 or non-U.S. income tax audits for years through 2014. We are currently under examination for various years in Canada, China, Germany, India, Indonesia, Italy, Malaysia, Mexico, the Philippines, Saudi Arabia, the U.S. and Venezuela.

It is reasonably possible that within the next 12 months the effective tax rate will be impacted by the resolution of some or all of the matters audited by various taxing authorities. It is also reasonably possible that we will have the statute of limitations close in various taxing jurisdictions within the next 12 months. As such, we estimate we could record a reduction in our tax expense of approximately $14 million within the next 12 months.

The Company maintains a full valuation allowance against the net deferred tax assets in certain foreign tax jurisdictions as of June 30, 2022. As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of net deferred tax assets. It is possible that within the next 12 months there may be sufficient positive evidence to release a portion or all of the valuation allowance in certain foreign tax jurisdictions. Release of these valuation allowances would result in a benefit to income tax expense for the period the release is recorded, which could have a material impact on net earnings. The timing and amount of the potential valuation allowance release are subject to significant management judgment and the level of profitability achieved.

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14.Segment Information

The following is a summary of the financial information of the reportable segments reconciled to the amounts reported in the condensed consolidated financial statements:

	Three Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		Eliminations and All Other		Consolidated Total
Sales to external customers	$	614,425	$	267,797	$	882,222	$	—	$	882,222
Intersegment sales	445		609		1,054		(1,054)		—
Segment operating income	57,346		30,369		87,715		(27,383)		60,332
	Three Months Ended June 30, 2021
	FPD		FCD		Subtotal–Reportable Segments		Eliminations and All Other		Consolidated Total
Sales to external customers	$	617,434	$	280,744	$	898,178	$	—	$	898,178
Intersegment sales	257		416		673		(673)		—
Segment operating income	67,845		37,229		105,074		(32,912)		72,162

	Six Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments			Eliminations and All Other		Consolidated Total
Sales to external customers	$	1,188,412	$	514,868	$	1,703,280	0	$	—	$	1,703,280
Intersegment sales	2,043		1,393		3,436			(3,436)		—
Segment operating income	78,347		45,606		123,953			(56,253)		67,700
	Six Months Ended June 30, 2021
	FPD		FCD		Subtotal–Reportable Segments			Eliminations and All Other		Consolidated Total
Sales to external customers	$	1,219,600	$	535,886	$	1,755,486	0	$	—	$	1,755,486
Intersegment sales	733		1,096		1,829			(1,829)		—
Segment operating income	121,627		61,942		183,569			(55,304)		128,265

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15.Accumulated Other Comprehensive Income (Loss)

The following table presents the changes in AOCL, net of tax for the three months ended June 30, 2022 and 2021:

	2022								2021
(Amounts in thousands)	Foreign currency translation items(1)		Pension and other post-retirement effects		Cash flow hedging activity (2)		Total		Foreign currency translation items(1)		Pension and other post-retirement effects		Cash flow hedging activity (2)		Total
Balance - April 1	$	(472,769)	$	(98,078)	$	(1,307)	$	(572,154)	$	(467,326)	$	(142,464)	$	(286)	$	(610,076)
Other comprehensive income (loss) before reclassifications (3)	(64,160)		5,415		—		(58,745)		13,998		(713)		—		13,285
Amounts reclassified from AOCL	—		1,155		29		1,184		—		2,772		15		2,787
Net current-period other comprehensive income (loss) (3)	(64,160)		6,570		29		(57,561)		13,998		2,059		15		16,072
Balance - June 30	$	(536,929)	$	(91,508)	$	(1,278)	$	(629,715)	$	(453,328)	$	(140,405)	$	(271)	$	(594,004)

________________________________

(1) Includes foreign currency translation adjustments attributable to noncontrolling interests of $5.9 million and $6.1 million at April 1, 2022 and 2021, respectively, and $5.9 million and $6.1 million at June 30, 2022 and 2021, respectively. Also includes the impacts from the changes in fair value of our cross-currency swaps, which were $26.5 million and $10.0 million for the three months ended June 30, 2022 and 2021, respectively.

(2) Other comprehensive loss before reclassifications and amounts reclassified from AOCL to interest expense related to designated cash flow hedges.

(3) Amounts in parentheses indicate an increase to AOCL.

The following table presents the reclassifications out of AOCL:

		Three Months Ended June 30,
(Amounts in thousands)	Affected line item in the statement of income	2022(1)		2021(1)
Pension and other postretirement effects
Amortization of actuarial losses(2)	Other income (expense), net	$	(1,468)	$	(3,089)
Prior service costs(2)	Other income (expense), net	(144)		(155)
	Tax benefit	457		472
	Net of tax	$	(1,155)	$	(2,772)
Cash flow hedging activity
Amortization of Treasury rate lock	Interest expense	$	(38)	$	(20)
	Tax benefit	9		5
	Net of tax	$	(29)	$	(15)

__________________________________

(1) Amounts in parentheses indicate decreases to income. None of the reclassified amounts have a noncontrolling interest component.

(2) These AOCL components are included in the computation of net periodic pension cost. See Note 11 for additional details.

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The following table presents the changes in AOCL, net of tax for the six months ended June 30, 2022 and 2021:

	2022								2021
(Amounts in thousands)	Foreign currency translation items(1)		Pension and other post-retirement effects		Cash flow hedging activity (2)		Total		Foreign currency translation items(1)		Pension and other post-retirement effects		Cash flow hedging activity (2)		Total
Balance - January 1	$	(456,025)	$	(101,665)	$	(1,336)	$	(559,026)	$	(456,437)	$	(146,723)	$	(488)	$	(603,648)
Other comprehensive income (loss) before reclassifications (3)	(80,904)		7,373		—		(73,531)		3,109		804		—		3,913
Amounts reclassified from AOCL	—		2,784		58		2,842		—		5,514		217		5,731
Net current-period other comprehensive income (loss) (3)	(80,904)		10,157		58		(70,689)		3,109		6,318		217		9,644
Balance - June 30	$	(536,929)	$	(91,508)	$	(1,278)	$	(629,715)	$	(453,328)	$	(140,405)	$	(271)	$	(594,004)

________________________________

(1) Includes foreign currency translation adjustments attributable to noncontrolling interests of $4.6 million and $5.9 million at January 1, 2022 and 2021, respectively, and $5.9 million and $6.1 million at June 30, 2022 and 2021, respectively. Also includes the impacts from the changes in fair value of our cross-currency swaps, which were $35.1 million and $9.8 million for the six months ended June 30, 2022 and 2021, respectively.

(2) Other comprehensive loss before reclassifications and amounts reclassified from AOCL to interest expense related to designated cash flow hedges.

(3) Amounts in parentheses indicate an increase to AOCL.

The following table presents the reclassifications out of AOCL:

		Six Months Ended June 30,
(Amounts in thousands)	Affected line item in the statement of income	2022(1)		2021(1)
Pension and other postretirement effects
Amortization of actuarial losses(2)	Other income (expense), net	$	(3,200)	$	(6,148)
Prior service costs(2)	Other income (expense), net	(295)		(308)
	Tax benefit	711		942
	Net of tax	$	(2,784)	$	(5,514)
Cash flow hedging activity
Amortization of Treasury rate lock	Interest expense	$	(76)	$	(284)
	Tax benefit	18		67
	Net of tax	$	(58)	$	(217)

__________________________________

(1) Amounts in parentheses indicate decreases to income. None of the reclassified amounts have a noncontrolling interest component.

(2) These AOCL components are included in the computation of net periodic pension cost. See Note 11 for additional details.

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16.Realignment Programs

In the second quarter of 2020, we identified and initiated certain realignment activities to right-size our organizational operations based on the current business environment, with the overall objective to reduce our workforce costs, including manufacturing optimization through the consolidation of certain facilities ("Realignment Program"). The realignment activities consist of restructuring and non-restructuring charges. Restructuring charges represent costs associated with the relocation of certain business activities and facility closures and include related severance costs. Non-restructuring charges are primarily employee severance associated with the workforce reductions. Expenses are primarily reported in cost of sales ("COS") or selling, general and administrative ("SG&A"), as applicable, in our consolidated statements of income. We anticipate a total investment in these activities of approximately $95 million and the vast majority of the charges were incurred in 2020 and 2021 with the remainder to be incurred in 2022. There are certain other realignment activities that are currently being evaluated, but have not yet been finalized and therefore are not included in the above anticipated total investment.

Generally, the aforementioned charges will be paid in cash, except for asset write-downs, which are non-cash charges. The following is a summary of total charges, net of adjustments, incurred related to our Realignment Program:

	Three Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	604	$	76	$	680	$	—	$	680
SG&A	—		—		—		—		—
	$	604	$	76	$	680	$	—	$	680
Non-Restructuring Charges
COS	$	(225)	$	12	$	(213)	$	—	$	(213)
SG&A	2		33		35		27		62
	$	(223)	$	45	$	(178)	$	27	$	(151)
Total Realignment Charges
COS	$	379	$	88	$	467	$	—	$	467
SG&A	2		33		35		27		62
Total	$	381	$	121	$	502	$	27	$	529

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	Three Months Ended June 30, 2021
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	2,016	$	171	$	2,187	$	—	$	2,187
SG&A	667		—		667		—		667
	$	2,683	$	171	$	2,854	$	—	$	2,854
Non-Restructuring Charges
COS	$	1,558	$	80	$	1,638	$	—	$	1,638
SG&A	338		(129)		209		915		1,124
	$	1,896	$	(49)	$	1,847	$	915	$	2,762
Total Realignment Charges
COS	$	3,574	$	251	$	3,825	$	—	$	3,825
SG&A	1,005		(129)		876		915		1,791
Total	$	4,579	$	122	$	4,701	$	915	$	5,616

	Six Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	885	$	71	$	956	$	—	$	956
SG&A	—		—		—		—		—
	$	885	$	71	$	956	$	—	$	956
Non-Restructuring Charges
COS	$	(589)	$	(37)	$	(626)	$	(61)	$	(687)
SG&A	77		50		127		(266)		(139)
	$	(512)	$	13	$	(499)	$	(327)	$	(826)
Total Realignment Charges
COS	$	296	$	34	$	330	$	(61)	$	269
SG&A	77		50		127		(266)		(139)
Total	$	373	$	84	$	457	$	(327)	$	130

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	Six Months Ended June 30, 2021
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	6,043	$	470	$	6,513	$	—	$	6,513
SG&A	667		(9)		658		—		658
	$	6,710	$	461	$	7,171	$	—	$	7,171
Non-Restructuring Charges
COS	$	5,449	$	678	$	6,127	$	590	$	6,717
SG&A	495		739		1,234		4,195		5,429
	$	5,944	$	1,417	$	7,361	$	4,785	$	12,146
Total Realignment Charges
COS	$	11,492	$	1,148	$	12,640	$	590	$	13,230
SG&A	1,162		730		1,892		4,195		6,087
Total	$	12,654	$	1,878	$	14,532	$	4,785	$	19,317

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The following is a summary of total inception to date charges, net of adjustments, related to the Realignment Program:

	Inception to Date
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	26,761	$	2,107	$	28,868	$	—	$	28,868
SG&A	716		333		1,049		(17)		1,032
	$	27,477	$	2,440	$	29,917	$	(17)	$	29,900
Non-Restructuring Charges
COS	$	24,818	$	686	$	25,504	$	581	$	26,085
SG&A	11,126		5,312		16,438		21,529		37,967
	$	35,944	$	5,998	$	41,942	$	22,110	$	64,052
Total Realignment Charges
COS	$	51,579	$	2,793	$	54,372	$	581	$	54,953
SG&A	11,842		5,645		17,487		21,512		38,999
Total	$	63,421	$	8,438	$	71,859	$	22,093	$	93,952

Restructuring charges represent costs associated with the relocation or reorganization of certain business activities and facility closures and include costs related to employee severance at closed facilities, contract termination costs, asset write-downs and other costs. Severance costs primarily include costs associated with involuntary termination benefits. Contract termination costs include costs related to the termination of operating leases or other contract termination costs. Asset write-downs include accelerated depreciation of fixed assets, accelerated amortization of intangible assets, divestiture of certain non-strategic assets and inventory write-downs. Other costs generally include costs related to employee relocation, asset relocation, vacant facility costs (i.e., taxes and insurance) and other charges.

The following is a summary of restructuring charges, net of adjustments, for our restructuring activities related to our Realignment Program:

	Three Months Ended June 30, 2022
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs		Other		Total
COS	$	570	$	—	$	19	$	91	$	680
SG&A	—		—		—		—		—
Total	$	570	$	—	$	19	$	91	$	680

	Three Months Ended June 30, 2021
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs		Other		Total
COS	$	(154)	$	—	$	(849)	$	3,190	$	2,187
SG&A	168		—		—		499		667
Total	$	14	$	—	$	(849)	$	3,689	$	2,854

	Six Months Ended June 30, 2022
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs		Other		Total
COS	$	568	$	—	$	259	$	129	$	956
SG&A	—		—		—		—		—
Total	$	568	$	—	$	259	$	129	$	956

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	Six Months Ended June 30, 2021
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs		Other		Total
COS	$	1,219	$	—	$	1,341	$	3,953	$	6,513
SG&A	168		—		—		490		658
Total	$	1,387	$	—	$	1,341	$	4,443	$	7,171

The following is a summary of total inception to date restructuring charges, net of adjustments, related to our Realignment Program:

	Inception to Date
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs		Other		Total
COS	$	16,772	$	86	$	4,354	$	7,656	$	28,868
SG&A	251		—		14		767		1,032
Total	$	17,023	$	86	$	4,368	$	8,423	$	29,900

The following represents the activity, primarily severance charges from reductions in force, related to the restructuring reserves for the six months ended June 30, 2022 and 2021:

(Amounts in thousands)	2022		2021
Balance at January 1	$	4,868	$	18,255
Charges, net of adjustments	696		5,830
Cash expenditures	(2,082)		(14,388)
Other non-cash adjustments, including currency	(310)		(461)
Balance at June 30	$	3,172	$	9,236

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements and notes thereto, and the other financial data included elsewhere in this Quarterly Report. The following discussion should also be read in conjunction with our audited consolidated financial statements, and notes thereto, and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" ("MD&A") included in our 2021 Annual Report.

EXECUTIVE OVERVIEW

Our Company

We are a world-leading manufacturer and aftermarket service provider of comprehensive flow control systems. We develop and manufacture precision-engineered flow control equipment integral to the movement, control and protection of the flow of materials in our customers’ critical processes. Our product portfolio of pumps, valves, seals, automation and aftermarket services supports global infrastructure industries, including oil and gas, chemical, power generation and water management, as well as general industrial markets where our products and services add value. Through our manufacturing platform and global network of Quick Response Centers ("QRCs"), we offer a broad array of aftermarket equipment services, such as installation, advanced diagnostics, repair and retrofitting. We currently employ approximately 15,000 employees in more than 50 countries.

Our business model is significantly influenced by the capital and operating spending of global infrastructure industries for the placement of new products into service and aftermarket services for existing operations. The worldwide installed base of our products is an important source of aftermarket revenue, where products are relied upon to maximize operating time of many key industrial processes. We continue to invest significantly in our aftermarket strategy to provide local support to drive customer investments in our offerings and use of our services to replace or repair installed products. The aftermarket portion of our business also helps provide business stability during various economic periods. The aftermarket service and solutions business, which is primarily served by our network of 151 QRCs located around the globe, provides a variety of service offerings for our

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customers including spare parts, service solutions, product life cycle solutions and other value-added services. It is generally a higher margin business compared to our original equipment business and a key component of our business strategy.

Our operations are conducted through two business segments that are referenced throughout this MD&A:

•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

•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 business segments share a focus on industrial flow control technology and have a number of common customers. These segments also have complementary product offerings and technologies that are often combined in applications that provide us a net competitive advantage. Our segments also benefit from our global footprint and our economies of scale in reducing administrative and overhead costs to serve customers more cost effectively. For example, our segments share leadership for operational support functions, such as sales, research and development, marketing and supply chain.

The reputation of our product portfolio is built on more than 50 well-respected brand names such as Worthington, IDP, Valtek, Limitorque, Durco, Argus, Edward, Valbart and Durametallic, which we believe to be one of the most comprehensive in the industry. Our products and services are sold either directly or through designated channels to more than 10,000 companies, including some of the world’s leading engineering, procurement and construction ("EPC") firms, original equipment manufacturers, distributors and end users.

We continue to leverage our QRC network to be positioned as near to customers as possible for service and support in order to capture valuable aftermarket business. Along with maintaining the local capability to sell, install and service our equipment in remote regions, it is equally imperative to continuously improve our global operations. Despite headwinds caused by the COVID-19 pandemic, we continue to enhance our global supply chain capabilities to increase our ability to meet global customer demands and improve the quality and timely delivery of our products over the long-term. Additionally, we continue to devote resources to improve the supply chain processes across our business segments and find areas of synergy and cost reduction, all along improving our supply chain management capability to meet global customer demands. We also remain focused on improving on-time delivery and quality, while managing warranty costs as a percentage of sales across our global operations, through the assistance of a focused Continuous Improvement Process ("CIP") initiative. The goal of the CIP initiative, which includes lean manufacturing, six sigma business management strategy and value engineering, is to maximize service fulfillment to customers through on-time delivery, reduced cycle time and quality at the highest internal productivity.

COVID-19 Update

Our cross-functional crisis management team established during the first quarter of 2020 has continued monitoring and making recommendations to management to help us continue operating as an essential business, while also protecting the health and safety of our associates. We continue to actively monitor the impacts of the COVID-19 pandemic on all aspects of our business and geographies.

While we cannot reasonably estimate with certainty the duration and severity of the COVID-19 pandemic or its ultimate impact on the global economy, our business or our financial condition and results, we nonetheless remain committed to providing the critical support, products and services that our customers rely on, and currently believe that we will emerge from these events well positioned for long-term growth.

Health and Safety of Our Associates

The health and safety of our associates, suppliers and customers around the world continues to be a priority as we navigate the COVID-19 pandemic, including recent spikes in cases of the virus and its variants in various geographies in which we operate. These recent spikes related to multiple Omicron variants have caused significant disruption in certain geographies where we operate, including in Europe and China, which contributed to the labor availability and other COVID-19 operational challenges faced during the first half of 2022. Our associates have continued to demonstrate strong resilience in adapting to continually evolving health and safety guidelines while addressing these challenging times and providing products and services to our customers.

At the beginning of the pandemic we implemented policies and practices to help protect our workforce so they can safely and effectively carry out their vital work, and we have continued to revise those policies and practices in light of guidance received from local and regional health authorities where appropriate.

Our employees and facilities have a key role in keeping essential infrastructure and industries operating, including oil and gas, water, chemical, power generation and other essential industries, such as food and beverage and healthcare. While all of our facilities generally remain open and operational, we continue to occasionally experience temporary shutdowns in specific

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geographies as a result of COVID-19 disruption, such as the recent government-mandated shutdowns in Shanghai, China. The measures described above, combined with continued employee costs and under-absorption of manufacturing costs as a result of temporary closures and work-from-home policies, have had and are expected to continue having an adverse impact on our financial performance throughout the remainder of the pandemic. Despite the increased challenges of labor availability in the first half of 2022, we continue to expect a decline of these adverse impacts as we navigate through the remainder of 2022.

Customer Demand

During the first six months of 2022, the ongoing effects of the COVID-19 pandemic in global markets has continued to adversely impact our customers, particularly in the oil and gas markets. As a result of the pandemic’s effect (among certain other effects) on oil prices during 2020, many of our large oil and gas customers reduced capital expenditures and budgets in 2020. To date, while spending for maintenance and repair projects and aftermarket services have returned to pre-pandemic levels over the past several quarters, project-based, oil and gas customer spending has yet to return to pre-pandemic levels despite some meaningful improvement in the first six months of 2022. In this regard, we saw an overall increase in bookings of 12.3% in the first six months of 2022 as compared to the same period in 2021. Despite the meaningful improvement in customer spending, during the first half of 2022 we continued to experience customer-driven delays in the witnessing and inspection necessary to take delivery of equipment, which we expect will continue as long as we and our customers continue to experience the supply chain and logistics headwinds described below under the heading "Supply Chain Impact."

While many of the repair and maintenance projects that were paused by our customers in 2020 as a result of the pandemic were completed in 2021, repair and maintenance delays continued in 2021 and the first half of 2022, that will ultimately need to be completed, the timing will largely depend on the duration of the COVID-19 pandemic and how the virus continues to spread in our customers’ various geographies, given the impact of the pandemic on demand, utilization and required maintenance. While we saw some recovery in oil and gas capital expenditure budgets in the first half of 2022, capital spending did not yet reach pre-pandemic levels. We continue to expect planned oil and gas capital spending to increase through the rest of 2022 but remain below pre-pandemic levels.

Supply Chain Impact

Since the onset of the pandemic, many of our suppliers have also experienced varying lengths of production and shipping delays related to the COVID-19 pandemic and its effects, some of which continue to exist in highly affected countries. Additionally, the global supply chain and logistics constraints that have been affecting global markets since the third quarter of 2021 have continued to cause additional headwinds through the first half of 2022. These conditions have had an adverse effect 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, requiring that we diversify our supply chain and, in some instances, source materials from new suppliers. Additionally, these conditions have in some cases impacted our ability to deliver products to customers on time, which has in turn led to an increase in backlog at some of our manufacturing sites. These disruptions in our supply chain and their effects have continued and we expect they will continue as the COVID-19 pandemic and ongoing global supply chain and logistics headwinds continue.

Operational Impacts

We have engaged in a number of cost savings measures in order to help mitigate certain of the adverse effects of the COVID-19 pandemic on our financial results, including certain realignment activities (further described below under “RESULTS OF OPERATIONS – Six months ended June 30, 2022 and 2021”), reductions in capital expenditures and continued cuts in other discretionary spending due to our response to the global macroeconomic effects of COVID-19, which partially offsets the continued costs and operational impacts of the safety protocols and procedures that we have implemented and sustained as described above under the heading "Health and Safety of Our Associates" and resulting inflationary pressures. We continue to evaluate additional cost savings measures in order to reduce the impact of the COVID-19 pandemic on our financial results.

We continually monitor and assess the spread of COVID-19 and known variants, including in areas that have seen recent increases in cases, and we will continue to adapt our operations to respond to the changing conditions as needed. During the first half of 2022, we continued to experience the same increased difficulty in maintaining staffing and productivity levels due to both a higher quarantine rate and a tighter labor market for new hiring as we experienced in the second half of 2021. As we

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continue to manage our business through this time of uncertainty and market volatility, we will remain focused on the health and safety of our associates, suppliers, customers, and will continue to provide essential products and services to our customers.

Impact of Russia-Ukraine Conflict on our Business

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 continue throughout 2022.

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, net, 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 a 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 concluded that the reserve recorded as of March 31, 2022 is sufficient and no changes to material reserves were needed.

The following table presents the above impacts of the Russia pre-tax charge:

	Six Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Consolidated Total
Sales	$	(5,429)	$	(2)	$	(5,431)
Cost of sales	3,510		1,112		4,622
Gross loss	(8,939)		(1,114)		(10,053)
Selling, general and administrative expense	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.

2022 Outlook

As the world continues to make progress against COVID-19 largely through increased vaccinations, we have seen an inflection in our served end-markets as commodity prices and mobility levels increase. With our increased backlog and improved market environment we expect to return to growth in 2022, however the combined effects of the supply chain, logistics and labor availability headwinds have continued into the first half of 2022. Further, we have not seen and do not expect to see an increase in cancellations from our backlog. We therefore expect to continue to deliver on our backlog during 2022, though with a slightly longer cycle time than originally expected.

As of June 30, 2022, we have cash and cash equivalents of $458.3 million and $277.1 million of borrowings available under our Senior Credit Facility. We do not currently anticipate, nor are we aware of, any significant market conditions or commitments that would change any of our conclusions of the liquidity currently available to us. Additionally, we expect that the costs savings measures planned and already in place will enable us to maintain adequate liquidity over the short-term (next 12 months) and long-term (beyond the next 12 months) as we manage through the current market environment. We will continue to actively monitor the potential impacts of COVID-19 and related events on the credit markets in order to maintain sufficient liquidity and access to capital.

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RESULTS OF OPERATIONS — Three and six months ended June 30, 2022 and 2021

Throughout this discussion of our results of operations, we discuss the impact of fluctuations in foreign currency exchange rates. We have calculated currency effects on operations by translating current year results on a monthly basis at prior year exchange rates for the same periods.

In the second quarter of 2020, we identified and initiated certain realignment activities to right-size our organizational operations based on the current business environment, with the overall objective to reduce our workforce costs. We anticipate a total investment in Realignment Program activities of approximately $95 million and the vast majority of the charges were incurred in 2020 and 2021 with the remainder to be incurred in 2022. There are certain other realignment activities that are currently being evaluated, but have not yet been finalized and therefore are not included in the above anticipated total investment.

Realignment Activity

The following tables present out realignment activity by segment related to our Realignment Program:

	Three Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		Eliminations and All Other		Consolidated Total
Total Realignment Charges
COS	$	379	$	88	$	467	$	—	$	467
SG&A	2		33		35		27		62
Total	$	381	$	121	$	502	$	27	$	529

	Three Months Ended June 30, 2021
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		Eliminations and All Other		Consolidated Total
Total Realignment Charges
COS	$	3,574	$	251	$	3,825	$	—	$	3,825
SG&A	1,005		$	(129)	876		915		1,791
Total	$	4,579	$	122	$	4,701	$	915	$	5,616

	Six Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		Eliminations and All Other		Consolidated Total
Total Realignment Charges
COS	$	296	$	34	$	330	$	(61)	$	269
SG&A	77		50		127		(266)		(139)
Total	$	373	$	84	$	457	$	(327)	$	130

	Six Months Ended June 30, 2021
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		Eliminations and All Other		Consolidated Total
Total Realignment Charges
COS	$	11,492	$	1,148	$	12,640	$	590	$	13,230
SG&A	1,162		730		1,892		4,195		6,087
Total	$	12,654	$	1,878	$	14,532	$	4,785	$	19,317

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Consolidated Results

Bookings, Sales and Backlog

	Three Months Ended June 30,
(Amounts in millions)	2022		2021
Bookings	$	1,044.0	$	952.8
Sales	882.2		898.2

	Six Months Ended June 30,
(Amounts in millions)	2022		2021
Bookings	$	2,129.7	$	1,896.8
Sales	1,703.3		1,755.5

We define a booking as the receipt of a customer order that contractually engages us to perform activities on behalf of our customer with regard to manufacturing, service or support. Bookings recorded and subsequently canceled within the year-to-date period are excluded from year-to-date bookings. Bookings for the three months ended June 30, 2022 increased by $91.2 million, or 9.6%, as compared with the same period in 2021. The increase included negative currency effects of approximately $47 million. The increase was driven by increased customer orders in the oil and gas, chemical, general and the water management industries partially offset by decreased bookings in power generation industry. The increase in customer bookings was primarily driven by original equipment bookings.

Bookings for the six months ended June 30, 2022 increased by $232.9 million, or 12.3%, as compared with the same period in 2021. The increase included negative currency effects of approximately $73 million. The increase was driven by increased customer bookings in the and oil and gas, chemical, power generation and the water management industries. The increase in customer bookings was more heavily weighted towards original equipment bookings.

Sales for the three months ended June 30, 2022 decreased by $16.0 million, or 1.8%, as compared with the same period in 2021. The decrease included negative currency effects of approximately $41 million. The decreased sales were driven by original equipment, with decreased sales into Europe, Asia Pacific and Latin America, partially offset by increased sales into North America, Africa and the Middle East. Net sales to international customers, including export sales from the U.S., were approximately 62% and 66% of total sales for the three months ended June 30, 2022 and 2021, respectively.

Sales for the six months ended June 30, 2022 decreased by $52.2 million, or 3.0%, as compared with the same period in 2021. The decrease included negative currency effects of approximately $60 million. The decreased sales were driven by both original equipment and aftermarket, with decreased sales into Europe, Asia Pacific, Latin America and the Middle East, partially offset by increased sales into North America. Net sales to international customers, including export sales from the U.S., were approximately 62% and 67% of total sales for the three months ended June 30, 2022 and 2021, respectively.

Backlog represents the aggregate value of booked but uncompleted customer orders and is influenced primarily by bookings, sales, cancellations and currency effects. Backlog of $2,316.2 million at June 30, 2022 increased by $312.6 million, or 15.6%, as compared with December 31, 2021 and include the negative impact of $25.2 million of order cancellations in the first quarter of 2022 due to our exposure in Russia. Currency effects provided a decrease of approximately $73 million. Approximately 37% and 38% of the backlog at June 30, 2022 and December 31, 2021, respectively, was related to aftermarket orders. Backlog includes our unsatisfied (or partially unsatisfied) performance obligations related to contracts having an original expected duration in excess of one year of approximately $562 million, as discussed in Note 2 to our condensed consolidated financial statements included in this Quarterly Report. 

Gross Profit and Gross Profit Margin

	Three Months Ended June 30,
(Amounts in millions, except percentages)	2022			2021
Gross profit	$	249.8		$	278.2
Gross profit margin	28.3		%	31.0		%

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	Six Months Ended June 30,
(Amounts in millions, except percentages)	2022			2021
Gross profit	$	459.5		$	529.1
Gross profit margin	27.0		%	30.1		%

Gross profit for the three months ended June 30, 2022 decreased by $28.4 million, or 10.2%, as compared with the same period in 2021. Gross profit margin for the three months ended June 30, 2022 of 28.3% decreased from 31.0% for the same period in 2021. The decrease in gross profit margin was primarily due to revenue recognized on lower margin original equipment orders, lower conversion of customer backlog to revenue and increased freight costs largely due to global supply chain and logistics constraints and under absorption of fixed manufacturing costs, partially offset by a mix shift to higher aftermarket sales and lower broad-based annual incentive compensation as compared to the same period in 2021. Aftermarket sales represented approximately 53% of total sales, as compared with approximately 52% of total sales for the same period in 2021.

Gross profit for the six months ended June 30, 2022 decreased by $69.6 million, or 13.2%, as compared with the same period in 2021. Gross profit margin for the six months ended June 30, 2022 of 27.0% decreased from 30.1% for the same period in 2021. The decrease in gross profit margin was primarily due to revenue recognized on lower margin original equipment orders, a $4.6 million charge taken in the first quarter of 2022 related to our financial exposure in Russia, lower conversion of customer backlog to revenue and increased freight costs largely due to global supply chain and logistics constraints and under absorption of fixed manufacturing costs, partially offset by as mix shift to higher aftermarket sales and lower broad-based annual incentive compensation as compared to the same period in 2021. Aftermarket sales represented approximately 53% of total sales, as compared with approximately 52% of total sales for the same period in 2021.

Selling, General and Administrative Expense

	Three Months Ended June 30,
(Amounts in millions, except percentages)	2022			2021
SG&A	$	194.6		$	210.8
SG&A as a percentage of sales	22.1		%	23.5		%

	Six Months Ended June 30,
(Amounts in millions, except percentages)	2022			2021
SG&A	$	400.8		$	409.1
SG&A as a percentage of sales	23.5		%	23.3		%

SG&A for the three months ended June 30, 2022 decreased by $16.2 million, or 7.7%, as compared with the same period in 2021. Currency effects yielded a decrease of approximately $7 million. SG&A as a percentage of sales for the three months ended June 30, 2022 decreased 140 basis points primarily due to decreased costs related to our realignment actions and lower broad-based annual incentive compensation as compared with the same period in 2021.

SG&A for the six months ended June 30, 2022 decreased by $8.3 million, or 2.0%, as compared with the same period in 2021. Currency effects yielded a decrease of approximately $12 million. SG&A as a percentage of sales for the six months ended June 30, 2022 increased 20 basis points primarily due to a $10.2 million charge taken in the first quarter of 2022 related to our financial exposure in Russia, partially offset by decreased costs related to our realignment actions and decreased broad-based annual incentive compensation as compared with the same period in 2021.

Net Earnings from Affiliates

    

	Three Months Ended June 30,
(Amounts in millions)	2022		2021
Net earnings from affiliates	$	5.1	$	2.9

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	Six Months Ended June 30,
(Amounts in millions)	2022		2021
Net earnings from affiliates	$	9.0	$	6.4

Net earnings from affiliates for the three months ended June 30, 2022 increased by $2.2 million, or 75.9%, as compared with the same period in 2021. The increase was primarily a result of increased earnings of our FPD joint venture in South Korea.

Net earnings from affiliates for the six months ended June 30, 2022 increased by $2.6 million, or 40.6%, as compared with the same period in 2021. The increase was primarily a result of increased earnings of our FPD joint venture in South Korea.

Operating Income and Operating Margin

	Three Months Ended June 30,
(Amounts in millions, except percentages)	2022			2021
Operating income	$	60.3		$	72.2
Operating income as a percentage of sales	6.8		%	8.0		%

	Six Months Ended June 30,
(Amounts in millions, except percentages)	2022			2021
Operating income	$	67.7		$	128.3
Operating income as a percentage of sales	4.0		%	7.3		%

Operating income for the three months ended June 30, 2022 decreased by $11.9 million, or 16.5%, as compared with the same period in 2021. The decrease included negative currency effects of approximately $3 million. The decrease was primarily a result of the $28.4 million decrease in gross profit, partially offset by the $16.2 million decrease in SG&A.

Operating income for the six months ended June 30, 2022 decreased by $60.6 million, or 47.2%, as compared with the same period in 2021. The decrease included negative currency effects of approximately $2 million. The decrease was primarily a result of the $69.6 million decrease in gross profit, partially offset by the $8.3 million decrease in SG&A.

Interest Expense and Interest Income

	Three Months Ended June 30,
(Amounts in millions)	2022		2021
Interest expense	$	(11.1)	$	(14.3)
Interest income	0.9		0.5

	Six Months Ended June 30,
(Amounts in millions)	2022		2021
Interest expense	$	(21.8)	$	(31.1)
Interest income	1.8		1.1

Interest expense for the three months ended June 30, 2022 decreased $3.2 million, as compared with the same period in 2021, primarily due to lower effective interest rates on our outstanding debt as compared with the same period in 2021.

Interest expense for the six months ended June 30, 2022 decreased $9.3 million, as compared with the same period in 2021, primarily due to lower effective interest rates on our outstanding debt as compared with the same period in 2021.

Loss on Extinguishment of Debt

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	Six Months Ended June 30,
(Amounts in millions)	2022		2021
Loss on extinguishment of debt	$	—	$	(7.6)

Loss on extinguishment of debt for the six months ended June 30, 2021 of $7.6 million resulted from the loss on early extinguishment of our 2022 Euro Senior Notes in the first quarter of 2021.

Other Income (Expense), Net

	Three Months Ended June 30,
(Amounts in millions)	2022		2021
Other income (expense), net	$	7.6	$	(7.9)

	Six Months Ended June 30,
(Amounts in millions)	2022		2021
Other income (expense), net	$	(0.5)	$	(19.2)

Other expense, net for the three months ended June 30, 2022 decreased $15.5 million as compared with the same period in 2021, due primarily to a $7.0 million increase in gains from transactions in currencies other than our sites' functional currencies and a $6.9 million decrease in losses arising from transactions on foreign exchange forward contracts. The net change was primarily due to the foreign currency exchange rate movements in the Hungarian forint, Brazilian real, Euro and Russian ruble in relation to the U.S. dollar during the three months ended June 30, 2022, as compared with the same period in 2021.

Other expense, net for the six months ended June 30, 2022 decreased $18.7 million as compared with the same period in 2021, due primarily to a $19.7 million decrease in losses from transactions in currencies other than our sites' functional currencies, partially offset by a $1.6 million decrease in gains arising from transactions on foreign exchange forward contracts. The net change was primarily due to the foreign currency exchange rate movements in the Canadian dollar, Hungarian forint, Euro and Russian ruble in relation to the U.S. dollar during the six months ended June 30, 2022, as compared with the same period in 2021.

Income Taxes and Tax Rate

	Three Months Ended June 30,
(Amounts in millions, except percentages)	2022			2021
Provision for (benefit from) income taxes	$	11.6		$	2.7
Effective tax rate	20.1		%	5.4		%

	Six Months Ended June 30,
(Amounts in millions, except percentages)	2022			2021
Provision for (benefit from) income taxes	$	14.8		$	6.5
Effective tax rate	31.4		%	9.1		%

The effective tax rate of 20.1% for the three months ended June 30, 2022 increased from 5.4% for the same period in 2021. The effective tax rate varied from the U.S. federal statutory rate for the three months ended June 30, 2022 primarily due to the net impact of foreign operations, partially offset by BEAT. Refer to Note 13 to our condensed consolidated financial statements included in this Quarterly Report for further discussion.

The effective tax rate of 31.4% for the six months ended June 30, 2022 increased from 9.1% for the same period in 2021. The effective tax rate varied from the U.S. federal statutory rate for the six months ended June 30, 2022 primarily due to the current and anticipated tax impact of the Russia-Ukraine conflict on our business, partially offset by the net impact of foreign operations. Refer to Note 13 to our condensed consolidated financial statements included in this Quarterly Report for further discussion.

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Other Comprehensive Income (Loss)

	Three Months Ended June 30,
(Amounts in millions)	2022		2021
Other comprehensive income (loss)	$	(57.6)	$	16.1

	Six Months Ended June 30,
(Amounts in millions)	2022		2021
Other comprehensive income (loss)	$	(70.7)	$	9.6

Other comprehensive loss for the three months ended June 30, 2022 increased $73.6 million as compared to the same period in 2021. The increased loss was primarily due to foreign currency translation adjustments resulting primarily from exchange rate movements of the Euro, British pound, Indian rupee and Chinese yuan versus the U.S. dollar during the three months ended June 30, 2022, as compared with the same period in 2021.

Other comprehensive loss for the six months ended June 30, 2022 increased $80.3 million as compared to the same period in 2021. The increased loss was primarily due to foreign currency translation adjustments resulting primarily from exchange rate movements of the Euro, British pound, Indian rupee and Chinese yuan versus the U.S. dollar during the six months ended June 30, 2022, as compared with the same period in 2021.

Business Segments

We conduct our operations through two business segments based on the type of product and how we manage the business. We evaluate segment performance and allocate resources based on each segment’s operating income. The key operating results for our two business segments, FPD and FCD, are discussed below.

Flowserve Pump Division Segment Results

Our largest business segment is FPD, through which we design, manufacture, distribute and service highly custom engineered pumps, pre-configured industrial pumps, pump systems, mechanical seals, and auxiliary systems (collectively referred to as "original equipment") and related services. FPD primarily operates in the oil and gas, power generation, chemical and general industries. FPD operates in 49 countries with 35 manufacturing facilities worldwide, 10 of which are located in Europe, 11 in North America, eight in Asia and six in Latin America, and it operates 131 QRCs, including those co-located in manufacturing facilities and/or shared with FCD.

	Three Months Ended June 30,
(Amounts in millions, except percentages)	2022			2021
Bookings	$	717.8		$	668.8
Sales	614.9			617.5
Gross profit	184.0			196.4
Gross profit margin	29.9		%	31.8		%
SG&A	131.7			133.6
Gain on sale of business	—			1.8
Segment operating income	57.3			67.8
Segment operating income as a percentage of sales	9.3		%	11.0		%

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	Six Months Ended June 30,
(Amounts in millions, except percentages)	2022			2021
Bookings	$	1,513.0		$	1,322.2
Sales	1,190.5			1,220.1
Gross profit	340.9			379.2
Gross profit margin	28.6		%	31.1		%
SG&A	271.5			266.2
Gain on sale of business	—			1.8
Segment operating income	78.3			121.6
Segment operating income as a percentage of sales	6.6		%	10.0		%

Bookings for the three months ended June 30, 2022 increased by $49.0 million, or 7.3%, as compared with the same period in 2021. The increase included negative currency effects of approximately $34 million. The increase in customer bookings was driven by increased customer orders in the chemical, general, power generation and water management industries, partially offset by decreased customer orders in the oil and gas industries. Customer bookings increased $62.1 million into North America, $17.6 million into Asia Pacific and $7.6 million into Africa and were partially offset by decreased customer orders of $25.6 million into the Middle East, $7.0 million into Europe and $5.3 million into Latin America. The increase was more heavily weighted towards original equipment bookings.

Bookings for the six months ended June 30, 2022 increased by $190.8 million, or 14.4%, as compared with the same period in 2021. The increase included negative currency effects of approximately $52.9 million. The increase in customer bookings was driven by increased customer orders in the oil and gas, power generation, chemical and water management industries, partially offset by decreased customer orders in the general industries. Customer bookings increased $86.1 million into North America, $26.4 million into the Middle East, $35.7 million into Asia Pacific, $68.1 million into Europe and $7.9 million into Africa and were partially offset by decreased customer orders of $14.7 million into Latin America. The increase was driven by both original equipment and aftermarket bookings.

Sales for the three months ended June 30, 2022 decreased by $2.6 million, or 0.4% as compared with the same period in 2021 and included negative currency effects of approximately $30 million. The decrease was driven by customer original equipment sales. Decreased customer sales of $21.9 million into Asia Pacific, $14.9 million into Europe and $4.0 million into Latin America were substantially offset by increased sales of $21.6 million into North America, $4.8 million into the Middle East and $10.3 million into Africa.

Sales for the six months ended June 30, 2022 decreased by $29.6 million, or 2.4% as compared with the same period in 2021 and included negative currency effects of approximately $44 million and $5.4 million of negative impact as a result of the reserve for our Russia exposure. The decrease was more heavily weighted by customer original equipment sales. Decreased customer sales of $45.3 million into Asia Pacific, $29.9 million into Europe and $0.8 million into the Middle East were partially offset by increased sales of $35.8 million into North America, $4.9 million into Africa and $1.4 million into Latin America.

Gross profit for the three months ended June 30, 2022 decreased by $12.4 million, or 6.3%, as compared with the same period in 2021. Gross profit margin for the three months ended June 30, 2022 of 29.9% decreased from 31.8% for the same period in 2021. The decrease in gross profit margin was primarily attributable to revenue recognized on lower margin original equipment orders, lower conversion of customer backlog to revenue and increased freight costs largely due to global supply chain and logistics constraints, partially offset by a mix shift to higher margin aftermarket, lower broad-based annual incentive compensation and decreased costs related to our realignment actions as compared to the same period in 2021.

Gross profit for the six months ended June 30, 2022 decreased by $38.3 million, or 10.1%, as compared with the same period in 2021. Gross profit margin for the six months ended June 30, 2022 of 28.6% decreased from 31.1% for the same period in 2021. The decrease in gross profit margin was primarily attributable to revenue recognized on lower margin original equipment orders, lower conversion of customer backlog to revenue and increased freight costs largely due to global supply chain and logistics constraints and a $3.5 million charge taken in the first quarter of 2022 related to our financial exposure in Russia, partially offset by a mix shift to higher margin aftermarket, lower broad-based annual incentive compensation and decreased costs related to our realignment actions as compared to the same period in 2021.

SG&A for the three months ended June 30, 2022 decreased by $1.9 million, or 1.4%, as compared with the same period in 2021. Currency effects provided a decrease of approximately $5 million. The decrease in SG&A was primarily due to lower broad-based annual incentive compensation and decreased costs related to our realignment actions as compared to the same period in 2021.

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SG&A for the six months ended June 30, 2022 increased by $5.3 million, or 2.0%, as compared with the same period in 2021. Currency effects provided increase of approximately $8.6 million. The increase in SG&A was primarily due a $9.1 million charge taken in the first half of 2022 related to our financial exposure in Russia, partially offset by lower broad-based annual incentive compensation as compared to the same period in 2021.

Operating income for the three months ended June 30, 2022 decreased by $10.5 million, or 15.5%, as compared with the same period in 2021. The decrease included negative currency effects of approximately $3 million. The decrease was primarily due to the $12.4 million decrease in gross profit, partially offset by the $1.9 million decrease in SG&A.

Operating income for the six months ended June 30, 2022 decreased by $43.3 million, or 35.6%, as compared with the same period in 2021. The decrease included negative currency effects of approximately $2 million. The decrease was primarily due to the $38.3 million decrease in gross profit and the $5.3 million increase in SG&A.

Backlog of $1,619.8 million at June 30, 2022 increased by $250.9 million, or 18.3%, as compared with December 31, 2021 and include the negative impact of $19.0 million of order cancellations in the first quarter of 2022 due to our exposure in Russia. Currency effects provided a decrease of approximately $21 million.

Flow Control Division Segment Results

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. FCD leverages its experience and application know-how by offering a complete menu of engineered services to complement its expansive product portfolio. FCD has a total of 44 manufacturing facilities and QRCs in 22 countries around the world, with five of its 19 manufacturing operations located in the U.S., eight located in Europe, five located in Asia Pacific and one located in Latin America. Based on independent industry sources, we believe that FCD is the second largest industrial valve supplier on a global basis.

	Three Months Ended June 30,
(Amounts in millions, except percentages)	2022			2021
Bookings	$	329.9		$	289.1
Sales	268.4			281.2
Gross profit	80.3			84.8
Gross profit margin	29.9		%	30.2		%
SG&A	50.0			48.0
Segment operating income	30.4			37.2
Segment operating income as a percentage of sales	11.3		%	13.2		%

	Six Months Ended June 30,
(Amounts in millions, except percentages)	2022			2021
Bookings	$	624.2		$	582.6
Sales	516.3			537.0
Gross profit	139.8			159.4
Gross profit margin	27.1		%	29.7		%
SG&A	94.2			97.8
Segment operating income	45.6			61.9
Segment operating income as a percentage of sales	8.8		%	11.5		%

Bookings for the three months ended June 30, 2022 increased by $40.8 million, or 14.1%, as compared with the same period in 2021. Bookings included negative currency effects of approximately $14 million. The increase in customer bookings was primarily driven by increased customer orders in the chemical, oil and gas, water management and general industries, partially offset by decreased customer orders in the power generation industry. Increased customer bookings were driven by increased orders of $11.8 million into North America, $14.8 million into Asia Pacific, $5.3 million into Africa, $3.5 million into Europe, $5.7 million into the Middle East and $0.8 million into Latin America. The increase was driven by customer original equipment bookings.

Bookings for the six months ended June 30, 2022 increased by $41.6 million, or 7.1%, as compared with the same period in 2021. Bookings included negative currency effects of approximately $20 million. The increase in customer bookings was primarily driven by increased customer orders in the chemical, oil and gas, water management and general industries, partially

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offset by decreased customer orders in the power generation industry. Increased customer orders of $18.5 million into North America, $12.1 million into Europe, $4.7 million into Africa, $7.5 million into the Middle East and $1.2 million into Latin America were partially offset by decreased customer orders of $0.3 million into Asia Pacific. The increase was primarily driven by customer original equipment bookings.

Sales for the three months ended June 30, 2022 decreased $12.8 million, or 4.6%, as compared with the same period in 2021. The decrease included negative currency effects of approximately $11 million. Decreased sales were driven by original equipment sales. The decrease was primarily driven by decreased customer sales of $16.2 million into Asia Pacific, $1.7 million into Africa, $2.6 million into the Middle East, $9.5 million into Europe and $3.9 million into Latin America, partially offset by increased customer sales of $22.3 million into North America.

Sales for the six months ended June 30, 2022 decreased $20.7 million, or 3.9%, as compared with the same period in 2021. The decrease included negative currency effects of approximately $16 million. Decreased sales were driven by original equipment sales. The decrease was primarily driven by decreased customer sales of $27.3 million into Asia Pacific, $4.8 million into Africa, $6.0 million into the Middle East, $16.6 million into Europe and $5.2 million into Latin America, partially offset by increased customer sales of $39.4 million into North America.

Gross profit for the three months ended June 30, 2022 decreased by $4.5 million, or 5.3%, as compared with the same period in 2021. Gross profit margin for the three months ended June 30, 2022 of 29.9% decreased from the 30.2% for the same period in 2021. The decrease in gross profit margin was primarily attributable to lower conversion of customer backlog to revenue and increased freight costs largely due to global supply chain and logistics constraints, partially offset by lower broad-based annual incentive compensation as compared to the same period in 2021.

Gross profit for the six months ended June 30, 2022 decreased by $19.6 million, or 12.3%, as compared with the same period in 2021. Gross profit margin for the six months ended June 30, 2022 of 27.1% decreased from the 29.7% for the same period in 2021. The decrease in gross profit margin was primarily attributable to lower conversion of customer backlog to revenue, increased freight costs largely due to global supply chain and logistics constraints and a $1.1 million charge taken in the first half of 2022 related to our financial exposure in Russia, partially offset by lower broad-based annual incentive compensation as compared to the same period in 2021.

SG&A for the three months ended June 30, 2022 increased by $2.0 million, or 4.2%, as compared with the same period in 2021. Currency effects provided a decrease of approximately $2 million. The increase in SG&A was primarily due to higher bad debt expense and a discrete asset write-down, partially offset by lower broad-based annual incentive compensation as compared to the same period in 2021.

SG&A for the six months ended June 30, 2022 decreased by $3.6 million, or 3.7%, as compared with the same period in 2021. Currency effects provided a decrease of approximately $3 million. The a decrease in SG&A was primarily due to lower broad-based annual incentive compensation, partially offset by a $1.1 million charge taken in the first quarter of 2022 related to our financial exposure in Russia as compared to the same period in 2021.

Operating income for the three months ended June 30, 2022 decreased by $6.8 million, or 18.3%, as compared with the same period in 2021. The decrease included negative currency effects of less than one million. The decrease was primarily due to the $4.5 million decrease in gross profit and the $2.0 million increase in SG&A.

Operating income for the six months ended June 30, 2022 decreased by $16.3 million, or 26.3%, as compared with the same period in 2021. The decrease included negative currency effects of less than one million. The decrease was primarily due to the $19.6 million decrease in gross profit, partially offset by the $3.6 million decrease in SG&A.

Backlog of $701.9 million at June 30, 2022 increased by $62.1 million, or 9.7%, as compared with December 31, 2021 and include the negative impact of $9.8 million of order cancellations in the first quarter of 2022 due to our exposure in Russia. Currency effects provided a decrease of approximately $52 million.

LIQUIDITY AND CAPITAL RESOURCES

Cash Flow and Liquidity Analysis

	Six Months Ended June 30,
(Amounts in millions)	2022		2021
Net cash flows provided (used) by operating activities	$	(71.4)	$	61.3
Net cash flows provided (used) by investing activities	(29.0)		(23.8)
Net cash flows provided (used) by financing activities	(77.7)		(491.1)

Existing cash, cash generated by operations and borrowings available under the Senior Credit Facility are our primary sources of short-term liquidity. We monitor the depository institutions that hold our cash and cash equivalents on a regular

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basis, and we believe that we have placed our deposits with creditworthy financial institutions. Our sources of operating cash generally include the sale of our products and services and the conversion of our working capital, particularly accounts receivable and inventories. Our cash balance at June 30, 2022 was $458.3 million as compared with $658.5 million at December 31, 2021.

Our cash balance decreased by $200.2 million to $458.3 million at June 30, 2022, as compared with December 31, 2021. The cash activity during the first six months of 2022 included cash used by operating activities, $52.3 million in dividend payments, $31.0 million in capital expenditures and $15.9 million of payments on our Term Loan.

For the six months ended June 30, 2022, our cash used by operating activities was $71.4 million, as compared to cash provided of $61.3 million for the same period in 2021. Cash flow provided from working capital decreased for the six months ended June 30, 2022, due primarily to increased cash flows used by or decreased cash flows provided by accounts receivable, inventory, contract assets, contract liabilities and accrued liabilities and income tax payable, partially offset by increased cash flows provided by or decreased cash flows used by accounts payable and retirement obligations and other liabilities as compared to the same period in 2021.

Increases in accounts receivable used $21.6 million of cash flow for the six months ended June 30, 2022, as compared to provided $14.3 million for the same period in 2021. As of June 30, 2022, our days’ sales outstanding ("DSO") was 75 days as compared with 73 days as of June 30, 2021.

Increases in contract assets used $7.7 million of cash flow for the six months ended June 30, 2022, as compared with cash flows provided of $12.2 million for the same period in 2021.

Increases in inventory used $96.7 million and $30.8 million of cash flow for the six months ended June 30, 2022 and June 30, 2021, respectively. Inventory turns were 3.3 times at June 30, 2022, as compared to 3.6 as of June 30, 2021.

Increases in accounts payable provided $33.6 million of cash flow for the six months ended June 30, 2022, as compared with $41.1 million cash used for the same period in 2021. Decreases in accrued liabilities and income taxes payable used $65.8 million of cash flow for the six months ended June 30, 2022, as compared with $37.1 million for the same period in 2021. Cash used from accrued liabilities and income tax payable included a one-time tax payment of approximately $30 million associated with accrued withholding taxes related to foreign undistributed earnings for the six months ended June 30, 2022.

Increases in contract liabilities provided $9.6 million of cash flow for the six months ended June 30, 2022, as compared to cash flows provided of $17.0 million for the same period in 2021.

Cash flows used by investing activities during the six months ended June 30, 2022 were $29.0 million, as compared to $23.8 million for the same period in 2021. Capital expenditures during the six months ended June 30, 2022 were $31.0 million, an increase of $8.5 million as compared with the same period in 2021. Our capital expenditures are generally focused on strategic initiatives to pursue information technology infrastructure, ongoing scheduled replacements and upgrades and cost reduction opportunities. In 2022, we currently estimate capital expenditures to be between $60 million and $70 million before consideration of any acquisition activity. In addition, proceeds received during the six months ended June 30, 2022 from disposal of assets provided $0.2 million. Proceeds received during the six months ended June 30, 2021 from disposal of assets provided $2.1 million.

Cash flows used by financing activities during the six months ended June 30, 2022 were $77.7 million, as compared to $491.1 million for the same period in 2021. Cash outflows in the six months ended June 30, 2022 resulted primarily from the $15.9 million of payments on our Term Loan and $52.3 million of dividend payments. Cash outflows during the six months ended June 30, 2021 resulted primarily from a $407.5 million payment on long-term debt resulting from the redemption of our 2022 Euro Senior Notes, $52.2 million of dividend payments and the repurchase of $17.5 million of common shares.

Our Amended and Restated Credit Agreement matures in September 13, 2026. Approximately $18 million of our outstanding Term Loan Facility is due to mature in the remainder of 2022 and approximately $40 million in 2023. As of June 30, 2022, we had an available capacity of $277.1 million on our Senior Credit Facility, which provides for a $800.0 million unsecured revolving credit facility with a maturity date of September 13, 2026. Our borrowing capacity is subject to financial covenant limitations based on the terms of our Senior Credit Facility and is also reduced by outstanding letters of credit. Our Senior Credit Facility is committed and held by a diversified group of financial institutions. Refer to Note 6 to our condensed consolidated financial statements included in this Quarterly Report for additional information concerning our Senior Credit Facility.

During the six months ended June 30, 2022 we made no cash contributions to our U.S. pension plan. At December 31, 2021 our U.S. pension plan was fully funded as defined by applicable law. After consideration of our funded status, we currently anticipate making $20 million in contributions to our U.S. pension plan in 2022, excluding direct benefits paid. We continue to maintain an asset allocation consistent with our strategy to maximize total return, while reducing portfolio risks through asset class diversification.

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Considering our current debt structure and cash needs, we currently believe cash flows generated from operating activities combined with availability under our Senior Credit Facility and our existing cash balance will be sufficient to meet our cash needs for our short-term (next 12 months) and long-term (beyond the next 12 months) business needs. Cash flows from operations could be adversely affected by economic, political and other risks associated with sales of our products, operational factors, competition, fluctuations in foreign exchange rates and fluctuations in interest rates, among other factors. See "Financing" and "Cautionary Note Regarding Forward-Looking Statements" below.

As of June 30, 2022, we have $96.1 million of remaining capacity for Board of Directors approved share repurchases. While we currently intend to continue to return cash through dividends and/or share repurchases for the foreseeable future, any future returns of cash through dividends and/or share repurchases will be reviewed individually, declared by our Board of Directors at its discretion and implemented by management.

Financing

Credit Facilities

See Note 6 to our condensed consolidated financial statements included in this Quarterly Report for a discussion of our Senior Credit Facility and related covenants. We were in compliance with all applicable covenants under our Senior Credit Facility as of June 30, 2022.

As of June 30, 2022, we have cash and cash equivalents of $458.3 million and $277.1 million of borrowings available under our Senior Credit Facility. We do not currently anticipate, nor are we aware of, any significant market conditions or commitments that would change any of our conclusions of the liquidity currently available to us. Additionally, we expect that the costs savings measures planned and already in place will enable us to maintain adequate liquidity over the short-term (next 12 months) and long-term (beyond the next 12 months) as we manage through the current market environment. We will continue to actively monitor the potential impacts of COVID-19 and related events on the credit markets in order to maintain sufficient liquidity and access to capital.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Management’s discussion and analysis of financial condition and results of operations are based on our condensed consolidated financial statements and related footnotes contained within this Quarterly Report. Our critical accounting policies used in the preparation of our condensed consolidated financial statements were discussed in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of our 2021 Annual Report. The critical policies, for which no significant changes have occurred in the six months ended June 30, 2022, include:

•Revenue Recognition;

•Deferred Taxes, Tax Valuation Allowances and Tax Reserves;

•Reserves for Contingent Loss;

•Pension and Postretirement Benefits; and

•Valuation of Goodwill, Indefinite-Lived Intangible Assets and Other Long-Lived Assets.

The process of preparing condensed consolidated financial statements in conformity with U.S. GAAP requires the use of estimates and assumptions to determine certain of the assets, liabilities, revenues and expenses. These estimates and assumptions are based upon what we believe is the best information available at the time of the estimates or assumptions. The estimates and assumptions could change materially as conditions within and beyond our control change. Accordingly, actual results could differ materially from those estimates. The significant estimates are reviewed quarterly with the Audit Committee of our Board of Directors.

Based on an assessment of our accounting policies and the underlying judgments and uncertainties affecting the application of those policies, we believe that our condensed consolidated financial statements provide a meaningful and fair perspective of our consolidated financial condition and results of operations. This is not to suggest that other general risk factors, such as changes in worldwide demand, changes in material costs, performance of acquired businesses and others, could not adversely impact our consolidated financial condition, results of operations and cash flows in future periods. See "Cautionary Note Regarding Forward-Looking Statements" below.

ACCOUNTING DEVELOPMENTS

We have presented the information about pronouncements not yet implemented in Note 1 to our condensed consolidated financial statements included in this Quarterly Report.

Cautionary Note Regarding Forward-Looking Statements

This Quarterly Report includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Words or phrases such as, "may," "should," "expects," "could," "intends," "plans," "anticipates," "estimates," "believes," "predicts" or other similar expressions are intended to identify forward-looking statements, which include, without limitation, statements concerning our future financial performance, future debt and financing levels, investment objectives, implications of litigation and regulatory investigations and other management plans for future operations and performance.

The forward-looking statements included in this Quarterly Report are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements and are currently, or in the future could be, amplified by the COVID-19 pandemic. Specific factors that might cause such a difference include, without limitation, the following:

•uncertainties related to the impact of the COVID-19 pandemic on our business and operations, financial results and financial position, our customers and suppliers, and on the global economy, including its impact on our sales;

•a portion of our bookings may not lead to completed sales, and our ability to convert bookings into revenues at acceptable profit margins;

•changes in the global financial markets and the availability of capital and the potential for unexpected cancellations or delays of customer orders in our reported backlog;

•our dependence on our customers' ability to make required capital investment and maintenance expenditures. The liquidity and financial position of our customers could impact capital investment decisions and their ability to pay in full and/or on a timely basis;

•if we are not able to successfully execute and realize the expected financial benefits from our strategic transformation, realignment and other cost-saving initiatives, our business could be adversely affected;

•risks associated with cost overruns on fixed fee projects and in accepting customer orders for large complex custom engineered products;

•the substantial dependence of our sales on the success of the oil and gas, chemical, power generation and water management industries;

•the adverse impact of volatile raw materials prices on our products and operating margins;

•economic, political and other risks associated with our international operations, including military actions, trade embargoes or changes to tariffs or trade agreements that could affect customer markets, particularly North African, Russian and Middle Eastern markets and global oil and gas producers, and non-compliance with U.S. export/reexport control, foreign corrupt practice laws, economic sanctions and import laws and regulations;

•increased aging and slower collection of receivables, particularly in Latin America and other emerging markets;

•our exposure to fluctuations in foreign currency exchange rates, particularly the Euro and British pound and in hyperinflationary countries such as Venezuela and Argentina;

•our furnishing of products and services to nuclear power plant facilities and other critical applications;

•potential adverse consequences resulting from litigation to which we are a party, such as litigation involving asbestos-containing material claims;

•expectations regarding acquisitions and the integration of acquired businesses;

•our relative geographical profitability and its impact on our utilization of deferred tax assets, including foreign tax credits;

•the potential adverse impact of an impairment in the carrying value of goodwill or other intangible assets;

•our dependence upon third-party suppliers whose failure to perform timely could adversely affect our business operations;

•the highly competitive nature of the markets in which we operate;

•environmental compliance costs and liabilities;

•potential work stoppages and other labor matters;

•access to public and private sources of debt financing;

•our inability to protect our intellectual property in the U.S., as well as in foreign countries;

•obligations under our defined benefit pension plans;

•our internal control over financial reporting may not prevent or detect misstatements because of its inherent limitations, including the possibility of human error, the circumvention or overriding of controls, or fraud;

•the recording of increased deferred tax asset valuation allowances in the future or the impact of tax law changes on such deferred tax assets could affect our operating results;

•risks and potential liabilities associated with cyber security threats; and

•ineffective internal controls could impact the accuracy and timely reporting of our business and financial results.

These and other risks and uncertainties are more fully discussed in the risk factors identified in "Item 1A. Risk Factors" in Part I of our 2021 Annual Report and Part II of this Quarterly Report, and may be identified in our Quarterly Reports on Form 10-Q and our other filings with the SEC and/or press releases from time to time. All forward-looking statements included in this document are based on information available to us on the date hereof, and we assume no obligation to update any forward-looking statement.

Item 3.Quantitative and Qualitative Disclosures About Market Risk.

We have market risk exposure arising from changes in foreign currency exchange rate movements in foreign exchange forward contracts. We are exposed to credit-related losses in the event of non-performance by counterparties to financial instruments, but we currently expect our counterparties will continue to meet their obligations given their current creditworthiness.

LIBOR

On March 5, 2021, the UK Financial Conduct Authority (“FCA”), which regulates the London Interbank Offered Rate (“LIBOR”) issued an announcement on the future cessation or loss of representativeness of LIBOR benchmark settings currently published by ICE Benchmark Administration. That announcement confirmed that LIBOR will either cease to be provided by any administrator or will no longer be representative after December 31, 2021 for all non-USD LIBOR reference rates, and for 1-Week and 2-Month USD LIBOR and after June 30, 2023 for other USD LIBOR reference rates. The U.S. Federal Reserve, in conjunction with the Alternative Reference Rate Committee, has proposed the replacement of U.S. dollar LIBOR rates with a new index calculated by short-term repurchase agreements backed by U.S. Treasury securities called the Secured Overnight Financing Rate (“SOFR”). Whether or not SOFR is generally accepted as the LIBOR replacement remains in question and the future of LIBOR at this time is uncertain. The Company’s Amended and Restated Credit Agreement includes a provision for the determination of a successor LIBOR rate when appropriate by reference to the then-prevailing market convention for determining an interest rate for syndicated loans in the United States, subject to a right of the lenders thereunder to reject the application of the determined rate by written notice. While we will work with our administrative agent to incorporate a successor reference rate, there can be no assurances as to what alternative reference rates may be and whether such rates will be more or less favorable than LIBOR and any other unforeseen impacts of the potential discontinuation of LIBOR.

Foreign Currency Exchange Rate Risk

A substantial portion of our operations are conducted by our subsidiaries outside of the U.S. in currencies other than the U.S. dollar. Almost all of our non-U.S. subsidiaries conduct their business primarily in their local currencies, which are also their functional currencies. Foreign currency exposures arise from translation of foreign-denominated assets and liabilities into U.S. dollars and from transactions, including firm commitments and anticipated transactions, denominated in a currency other than our or a non-U.S. subsidiary’s functional currency. As a means of managing the volatility of foreign currency exposure with the Euro/U.S. dollar exchange rate, we entered into three swap agreements associated with our Euro investment in certain of our international subsidiaries. The swap agreements are designated as a net investment hedges and as of June 30, 2022, the notional value of the swaps agreements was €423.2 million. Routinely, we review our investments in foreign subsidiaries from a long-term perspective and use capital structuring techniques to manage our investment in foreign subsidiaries as deemed necessary. For further discussion related to these swap agreements refer to Note 5 to our condensed consolidated financial statements included in this Quarterly Report. We recognized net gains (losses) associated with foreign currency translation of $(64.2) million and $14.0 million for the three months ended June 30, 2022 and 2021, respectively, and $(80.9) million and $3.1 million for the six months ended June 30, 2022 and 2021, respectively, which are included in other comprehensive income (loss).

We employ a foreign currency risk management strategy to minimize potential changes in cash flows from unfavorable foreign currency exchange rate movements. Where available, the use of foreign exchange forward contracts allows us to mitigate transactional exposure to exchange rate fluctuations as the gains or losses incurred on the foreign exchange forward contracts will offset, in whole or in part, losses or gains on the underlying foreign currency exposure. As of June 30, 2022, we had a U.S. dollar equivalent of $413.9 million in aggregate notional amount outstanding in foreign exchange forward contracts with third parties, as compared with $425.2 million at December 31, 2021. Transactional currency gains and losses arising from transactions outside of our sites’ functional currencies and changes in fair value of non-designated foreign exchange forward contracts are included in our consolidated results of operations. We recognized foreign currency net gains (losses) of $10.1 million and $(4.2) million for the three months ended June 30, 2022 and 2021, respectively, and $4.4 million and $(13.7) million for the six months ended June 30, 2022 and 2021, respectively, are included in other income (expense), net in the accompanying condensed consolidated statements of income.

Based on a sensitivity analysis at June 30, 2022, a 10% change in the foreign currency exchange rates for the six months ended June 30, 2022 would have impacted our net earnings by approximately $3 million. This calculation assumes that all currencies change in the same direction and proportion relative to the U.S. dollar and that there are no indirect effects, such as changes in non-U.S. dollar sales volumes or prices. This calculation does not take into account the impact of the foreign currency exchange forward contracts discussed above.

Item 4.Controls and Procedures.

Disclosure Controls and Procedures

Disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) are controls and other procedures that are designed to ensure that the information that we are required to disclose in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Principal Executive Officer and Principal Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

In connection with the preparation of this Quarterly Report, our management, under the supervision and with the participation of our Principal Executive Officer and Principal Financial Officer, carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2022. Based on this evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective as of June 30, 2022.

Changes in Internal Control Over Financial Reporting

There have been no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act) during the quarter ended June 30, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

39

Table of Contents

PART II — OTHER INFORMATION

Item 1.Legal Proceedings.

We are party to the legal proceedings that are described in Note 10 to our condensed consolidated financial statements included in "Item 1. Financial Statements" of this Quarterly Report, and such disclosure is incorporated by reference into this "Item 1. Legal Proceedings." In addition to the foregoing, we and our subsidiaries are named defendants in certain other ordinary routine lawsuits incidental to our business and are involved from time to time as parties to governmental proceedings, all arising in the ordinary course of business. Although the outcome of lawsuits or other proceedings involving us and our subsidiaries cannot be predicted with certainty, and the amount of any liability that could arise with respect to such lawsuits or other proceedings cannot be predicted accurately, management does not currently expect the amount of any liability that could arise with respect to these matters, either individually or in the aggregate, to have a material adverse effect on our financial position, results of operations or cash flows.

Item 1A.Risk Factors.

There are numerous factors that affect our business, financial condition, results of operations, cash flows, reputation and/or prospects, many of which are beyond our control. In addition to other information set forth in this Quarterly Report, careful consideration should be given to "Item 1A. Risk Factors" in Part I and "Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations" in Part II of our 2021 Annual Report, which contain descriptions of significant factors that might cause the actual results of operations in future periods to differ materially from those currently projected in the forward-looking statements contained therein.

There have been no material changes in risk factors discussed in our 2021 Annual Report and subsequent SEC filings. The risks described in this Quarterly Report filed for the period ended June 30, 2022, our 2021 Annual Report and in our other SEC filings or press releases from time to time are not the only risks we face. Additional risks and uncertainties are currently deemed immaterial based on management's assessment of currently available information, which remains subject to change; however, new risks that are currently unknown to us may surface in the future that materially adversely affect our business, financial condition, results of operations or cash flows.

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds.

Note 12 to our condensed consolidated financial statements included in this Quarterly Report includes a discussion of our share repurchase program and payment of quarterly dividends on our common stock.

During the quarter ended June 30, 2022, we had no repurchases of our common stock shares.  As of June 30, 2022, we have $96.1 million of remaining capacity under our current share repurchase program. The following table sets forth the activity for each of the three months during the quarter ended June 30, 2022:

	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Program (1)	Maximum Number of Shares (or Approximate Dollar Value) That May Yet Be Purchased Under the Program (in millions)
Period
April 1 - 30	264	(2)	$	35.59	—	$	96.1
May 1 - 31	6,360	(3)	30.06		—	96.1
June 1 - 30	332	(2)	29.12		—	96.1
Total	6,956		$	30.23	—

__________________________________

(1)On November 13, 2014, our Board of Directors approved a $500.0 million share repurchase authorization. Our share repurchase program does not have an expiration date, and we reserve the right to limit or terminate the repurchase program at any time without notice.

(2)Represents shares that were tendered by employees to satisfy minimum tax withholding amounts for Restricted Shares.

(3)Includes 5,440 shares that were tendered by employees to satisfy minimum tax withholding amounts for Restricted Shares at an average price per share of $29.86 and 920 shares purchased at a price of $31.28 per share by a rabbi trust that we established in connection with our director deferral plans, pursuant to which non-employee directors may elect to defer directors’ quarterly cash compensation to be paid at a later date in the form of common stock.

40

Table of Contents

Item 3.Defaults Upon Senior Securities.

None

Item 4.Mine Safety Disclosures.

Not applicable.

Item 5.Other Information.

None

41

Table of Contents

Item 6.Exhibits

Exhibit No.	Description
3.1	Restated Certificate of Incorporation of Flowserve Corporation, as amended and restated effective May 20, 2021 (incorporated by reference to Exhibit 3.1 to the Registrant’s Current Report on Form 8-K filed on May 25, 2021).
3.2	Flowserve Corporation By-Laws, as amended and restated effective May 12, 2022 (incorporated by reference to Exhibit 3.2 to the Registrant’s Current Report on Form 8-K filed on May 12, 2022).
10.1+	Amendment to Performance Restricted Stock Unit Agreements under the Flowserve Corporation 2020 Long-Term Incentive Plan by and between Flowserve Corporation and R. Scott Rowe dated April 19, 2022*.
31.1+	Certification of Principal Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2+	Certification of Principal Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1++	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2++	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
104	The cover page from the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2022, formatted in Inline XBRL (included as Exhibit 101)

_______________________

*Management contracts and compensatory plans and arrangements required to be filed as exhibits to this Quarterly Report on Form 10-Q.

+     Filed herewith.

++ Furnished herewith.

42

Table of Contents

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

FLOWSERVE CORPORATION 

Date:	July 27, 2022	/s/ Amy B. Schwetz
		Amy B. Schwetz
		Senior Vice President and Chief Financial Officer (Principal Financial Officer)

Date:	July 27, 2022	/s/ Scott K. Vopni
		Scott K. Vopni
		Vice President and Chief Accounting Officer (Principal Accounting Officer)

43

EX-10.1

EXHIBIT 10.1

AMENDMENT TO

PERFORMANCE RESTRICTED STOCK UNIT AGREEMENT

UNDER THE FLOWSERVE CORPORATION

2020 LONG-TERM INCENTIVE PLAN

WHEREAS, on February 16, 2021, the Board of Directors (the “Board”) of Flowserve Corporation (the “Company”) awarded Robert Scott Rowe (the “Participant”) a performance-based restricted stock unit award (the “2021 Performance Share Award”) under the Flowserve Corporation 2020 Long-Term Incentive Plan (the “Plan”) pursuant to that certain Performance Restricted Stock Unit Agreement (the “2021 Award Agreement”);

WHEREAS, on February 15, 2022, the Board awarded the Participant an additional a performance-based restricted stock unit award (the “2022 Performance Share Award” and together with the 2021 Performance Share Award, the “Awards”) under the Plan pursuant to that certain Performance Restricted Stock Unit Agreement (the “2022 Award Agreement” and together with the 2021 Award Agreement, the “Award Agreements”); and

WHEREAS, the Company and the Participant desire to amend the Award Agreements as set forth in this Amendment (this “Amendment”), in each case effective as of the original grant date for the applicable Award (the “Effective Date”) to clarify the settlement thereof.

NOW, THEREFORE, in consideration of the foregoing and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company and the Participant agree as follows:

1.A new sentence is hereby added to Section 2(g) of the Award Agreement to read as follows:

For the avoidance of doubt, to the extent necessary to comply with Section 5.1 of the Plan as in effect on the Date of Grant, any portion of the vested Performance Shares and Dividend Equivalents that are earned and settled hereunder in excess of 200,000 shares of Common Stock (when combined with all other shares of Common Stock subject to Bonus Stock, Restricted Stock, Restricted Stock Units, or other Performance Awards granted under the Plan to the Participant in the calendar year in which the Date of Grant occurred) shall be settled in cash in accordance with this Section 2(g).

2. In all other respects the Award Agreement is hereby ratified and confirmed.

3. Capitalized terms used in this Amendment shall have the meanings ascribed to them in the Plan or the Award     

Agreement, as applicable.

The Company and the Participant hereby adopt and agree to the terms and conditions of this Amendment on the date set forth below, but effective as of the Effective Date.

FLOWSERVE CORPORATION

Date: April 19, 2022

/s/ David E. Roberts

David E. Roberts
Non-Executive Chairman of the Board

Date: April 19, 2022

/s/ R. Scott Rowe

R. Scott Rowe
President and Chief Executive Officer

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, R. Scott Rowe, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2022 of Flowserve Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 27, 2022

/s/ R. Scott Rowe

R. Scott Rowe

President and Chief Executive Officer
(Principal Executive Officer) 

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, Amy B. Schwetz, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2022 of Flowserve Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: July 27, 2022

/s/ Amy B. Schwetz

Amy B. Schwetz

Senior Vice President and Chief Financial Officer
(Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, R. Scott Rowe, President and Chief Executive Officer of Flowserve Corporation (the “Company”), certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) the Quarterly Report on Form 10-Q of the Company for the period ended June 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Quarterly Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Quarterly Report fairly presents, in all material respects, the consolidated financial condition and results of operations of the Company.

Date: July 27, 2022

/s/ R. Scott Rowe

R. Scott Rowe

President and Chief Executive Officer
(Principal Executive Officer) 

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Amy B. Schwetz, Senior Vice President and Chief Financial Officer of Flowserve Corporation (the “Company”), certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) the Quarterly Report on Form 10-Q of the Company for the period ended June 30, 2022, as filed with the Securities and Exchange Commission on the date hereof (the “Quarterly Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) the information contained in the Quarterly Report fairly presents, in all material respects, the consolidated financial condition and results of operations of the Company.

Date: July 27, 2022

/s/ Amy B. Schwetz

Amy B. Schwetz

Senior Vice President and Chief Financial Officer
(Principal Financial Officer)

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2022	Jul. 22, 2022
Cover [Abstract]
Entity Central Index Key	0000030625
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2022
Document Transition Report	false
Entity File Number	1-13179
Entity Registrant Name	FLOWSERVE CORP
Entity Incorporation, State or Country Code	NY
Entity Tax Identification Number	31-0267900
Entity Address, Address Line One	5215 N. O’Connor Blvd., Suite 700,
Entity Address, City or Town	Irving,
Entity Address, State or Province	TX
Entity Address, Postal Zip Code	75039
City Area Code	972
Local Phone Number	443-6500
Title of 12(b) Security	Common Stock, $1.25 Par Value
Trading Symbol	FLS
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		130,693,455

XML

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Statement [Abstract]
Sales	$ 882,222	$ 898,178	$ 1,703,280	$ 1,755,486
Cost of sales	(632,393)	(619,940)	(1,243,803)	(1,226,348)
Gross profit	249,829	278,238	459,477	529,138
Selling, general and administrative expense	(194,606)	(210,789)	(400,816)	(409,104)
Gain on sale of business	0	1,806	0	1,806
Net earnings from affiliates	5,109	2,907	9,039	6,425
Operating income	60,332	72,162	67,700	128,265
Interest expense	(11,062)	(14,322)	(21,755)	(31,101)
Loss on extinguishment of debt			0	(7,610)
Interest income	854	465	1,797	1,067
Other income (expense), net	7,589	(7,850)	(524)	(19,213)
Earnings before income taxes	57,713	50,455	47,218	71,408
Provision for income taxes	(11,618)	(2,711)	(14,800)	(6,503)
Net earnings, including noncontrolling interests	46,095	47,744	32,418	64,905
Less: Net earnings attributable to noncontrolling interests	(1,318)	(2,390)	(3,458)	(5,471)
Net earnings attributable to Flowserve Corporation	$ 44,777	$ 45,354	$ 28,960	$ 59,434
Net earnings per share attributable to Flowserve Corporation common shareholders:
Basic (in dollars per share)	$ 0.34	$ 0.35	$ 0.22	$ 0.46
Diluted (in dollars per share)	$ 0.34	$ 0.35	$ 0.22	$ 0.45
Weighted average shares - basic (in shares)	130,666,000	130,305,000	130,554,000	130,366,000
Weighted average shares - diluted (in shares)	131,245,000	130,804,000	131,148,000	130,905,000

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Net earnings, including noncontrolling interests	$ 46,095	$ 47,744	$ 32,418	$ 64,905
Other comprehensive income (loss):
Foreign currency translation adjustments, net of taxes	(64,160)	13,998	(80,904)	3,109
Pension and other postretirement effects, net of taxes	6,570	2,059	10,157	6,318
Cash flow hedging activity, net of taxes	29	15	58	217
Other comprehensive income (loss)	(57,561)	16,072	(70,689)	9,644
Comprehensive income (loss), including noncontrolling interests	(11,466)	63,816	(38,271)	74,549
Comprehensive (income) loss attributable to noncontrolling interests	(1,321)	(2,403)	(4,798)	(5,633)
Comprehensive income (loss) attributable to Flowserve Corporation	$ (12,787)	$ 61,413	$ (43,069)	$ 68,916

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Statement of Comprehensive Income [Abstract]
Foreign currency translation, taxes	$ (7,299)	$ (6,401)	$ (20,605)	$ (5,747)
Pension and other postretirement effects, taxes	(457)	(472)	(711)	(942)
Cash flow hedging activity, taxes	$ (9)	$ (5)	$ (18)	$ (67)

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 458,345	$ 658,452
Accounts receivable, net of allowance for expected credit losses of $78,776 and $74,336, respectively	735,895	739,210
Contract assets, net of allowance for expected credit losses of $3,704 and $2,393, respectively	197,128	195,598
Inventories, net	748,920	678,287
Prepaid expenses and other	140,639	117,130
Total current assets	2,280,927	2,388,677
Property, plant and equipment, net of accumulated depreciation of $1,150,876 and $1,191,823, respectively	487,299	515,927
Operating lease right-of-use assets, net	178,974	193,863
Goodwill	1,162,514	1,196,479
Deferred taxes	34,582	44,049
Other intangible assets, net	139,786	152,463
Other assets, net of allowance for expected credit losses of $67,968 and $67,696, respectively	298,650	258,310
Total assets	4,582,732	4,749,768
Current liabilities:
Accounts payable	433,508	410,062
Accrued liabilities	374,575	445,092
Contract liabilities	205,175	202,965
Debt due within one year	46,306	41,058
Operating lease liabilities	32,153	32,628
Total current liabilities	1,091,717	1,131,805
Long-term debt due after one year	1,241,636	1,261,770
Operating lease liabilities	153,580	166,786
Retirement obligations and other liabilities	341,906	352,062
Commitments and contingencies (See Note 10)
Shareholders’ equity:
Common shares, $1.25 par value, Shares authorized - 305,000, Shares issued - 176,793	220,991	220,991
Capital in excess of par value	500,013	506,386
Retained earnings	3,666,935	3,691,023
Treasury shares, at cost – 46,377 and 46,794 shares, respectively	(2,037,839)	(2,057,706)
Deferred compensation obligation	6,921	7,214
Accumulated other comprehensive loss	(635,618)	(563,589)
Total Flowserve Corporation shareholders’ equity	1,721,403	1,804,319
Noncontrolling interests	32,490	33,026
Total equity	1,753,893	1,837,345
Total liabilities and equity	$ 4,582,732	$ 4,749,768

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Current assets:
Allowance for doubtful accounts	$ 78,776	$ 74,336
Contract asset, allowance for doubtful accounts	3,704	2,393
Accumulated depreciation on property, plant and equipment	1,150,876	1,191,823
Other assets, allowance for credit loss	$ 67,968	$ 67,696
Shareholders’ equity:
Common shares, par value (in dollars per share)	$ 1.25	$ 1.25
Common shares, shares authorized (in shares)	305,000	305,000
Common shares, shares issued (in shares)	176,793	176,793
Treasury shares, shares (in shares)	46,377	46,794

XML

Condensed Consolidated Statement of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Capital in Excess of Par Value	Retained Earnings	Treasury Stock	Deferred Compensation Obligation	Accumulated Other Comprehensive Income (Loss)	Non- controlling Interests
Balance — (in shares) at Dec. 31, 2020		176,793			46,768
Balance — at Dec. 31, 2020	$ 1,761,321	$ 220,991	$ 502,227	$ 3,670,543	$ (2,059,309)	$ 6,164	$ (609,625)	$ 30,330
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock activity under stock plans (in shares)					402
Stock activity under stock plans	(5,004)		(24,478)		$ 18,561	913
Stock-based compensation	16,472		16,472
Net earnings	64,905			59,434				5,471
Cash dividends declared	(52,860)			(52,860)
Repurchases of common shares (in shares)					(440)
Repurchases of common shares	(17,531)				$ (17,531)
Other comprehensive income (loss), net of tax	9,644						9,482	162
Other, net	(6,255)							(6,255)
Balance — (in shares) at Jun. 30, 2021		176,793			46,806
Balance — at Jun. 30, 2021	1,770,692	$ 220,991	494,221	3,677,117	$ (2,058,279)	7,077	(600,143)	29,708
Balance — (in shares) at Mar. 31, 2021		176,793			46,496
Balance — at Mar. 31, 2021	1,741,786	$ 220,991	488,906	3,658,158	$ (2,045,937)	6,114	(616,200)	29,754
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock activity under stock plans (in shares)					1
Stock activity under stock plans	(327)		(1,397)		$ 107	963
Stock-based compensation	6,712		6,712
Net earnings	47,744			45,354				2,390
Cash dividends declared	(26,395)			(26,395)
Repurchases of common shares (in shares)					(311)
Repurchases of common shares	(12,449)				$ (12,449)
Other comprehensive income (loss), net of tax	16,072						16,058	14
Other, net	(2,451)						(1)	(2,450)
Balance — (in shares) at Jun. 30, 2021		176,793			46,806
Balance — at Jun. 30, 2021	$ 1,770,692	$ 220,991	494,221	3,677,117	$ (2,058,279)	7,077	(600,143)	29,708
Balance — (in shares) at Dec. 31, 2021	176,793	176,793			46,794
Balance — at Dec. 31, 2021	$ 1,837,345	$ 220,991	506,386	3,691,023	$ (2,057,706)	7,214	(563,589)	33,026
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock activity under stock plans (in shares)					417
Stock activity under stock plans	(3,696)		(23,270)		$ 19,867	(293)
Stock-based compensation	16,897		16,897
Net earnings	32,418			28,960				3,458
Cash dividends declared	(53,048)			(53,048)
Other comprehensive income (loss), net of tax	(70,689)						(72,029)	1,340
Other, net	$ (5,334)							(5,334)
Balance — (in shares) at Jun. 30, 2022	176,793	176,793			46,377
Balance — at Jun. 30, 2022	$ 1,753,893	$ 220,991	500,013	3,666,935	$ (2,037,839)	6,921	(635,618)	32,490
Balance — (in shares) at Mar. 31, 2022		176,793			46,424
Balance — at Mar. 31, 2022	1,791,055	$ 220,991	496,151	3,648,678	$ (2,039,900)	7,122	(578,053)	36,066
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock activity under stock plans (in shares)					47
Stock activity under stock plans	(164)		(2,024)		$ 2,061	(201)
Stock-based compensation	5,886		5,886
Net earnings	46,095			44,777				1,318
Cash dividends declared	(26,520)			(26,520)
Other comprehensive income (loss), net of tax	(57,561)						(57,565)	4
Other, net	$ (4,898)							(4,898)
Balance — (in shares) at Jun. 30, 2022	176,793	176,793			46,377
Balance — at Jun. 30, 2022	$ 1,753,893	$ 220,991	$ 500,013	$ 3,666,935	$ (2,037,839)	$ 6,921	$ (635,618)	$ 32,490

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Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Cash flows – Operating activities:
Net earnings, including noncontrolling interests	$ 32,418	$ 64,905
Adjustments to reconcile net earnings to net cash provided (used) by operating activities:
Depreciation	40,034	44,491
Amortization of intangible and other assets	6,748	7,433
Loss on extinguishment of debt	0	7,610
Stock-based compensation	16,896	16,472
Foreign currency, asset write downs and other non-cash adjustments	(3,982)	12,460
Change in assets and liabilities:
Accounts receivable, net	(21,638)	14,285
Inventories, net	(96,737)	(30,784)
Contract assets, net	(7,705)	12,232
Prepaid expenses and other assets, net	(19,769)	(16,187)
Accounts payable	33,550	(41,146)
Contract liabilities	9,642	17,026
Accrued liabilities and income taxes payable	(65,773)	(37,123)
Retirement obligations and other	10,028	(2,761)
Net deferred taxes	(5,079)	(7,607)
Net cash flows provided (used) by operating activities	(71,367)	61,306
Cash flows – Investing activities:
Capital expenditures	(31,012)	(22,541)
Proceeds from disposal of assets and other	2,015	(1,299)
Net cash flows provided (used) by investing activities	(28,997)	(23,840)
Cash flows – Financing activities:
Payments on senior notes	0	(407,473)
Payments on term loan	(15,921)	0
Proceeds under other financing arrangements	1,029	1,386
Payments under other financing arrangements	(720)	(3,256)
Repurchases of common shares	0	(17,531)
Payments related to tax withholding for stock-based compensation	(4,497)	(5,777)
Payments of dividends	(52,267)	(52,168)
Other	(5,334)	(6,275)
Net cash flows provided (used) by financing activities	(77,710)	(491,094)
Effect of exchange rate changes on cash	(22,033)	(11,249)
Net change in cash and cash equivalents	(200,107)	(464,877)
Cash and cash equivalents at beginning of period	658,452	1,095,274
Cash and cash equivalents at end of period	$ 458,345	$ 630,397

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Basis of Presentation and Accounting Policies

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Basis of Presentation and Accounting Policies

Basis of Presentation and Accounting Policies

Basis of Presentation

The accompanying condensed consolidated balance sheet as of June 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 six months ended June 30, 2022 and 2021 and condensed consolidated statements of cash flows for the six months ended June 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 June 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 six months of 2022, we continue to be challenged by macroeconomics and global economic impacts based on the disruption and uncertainties caused by COVID-19. As a result of the COVID-19 pandemic’s effect on oil prices, many of our large customers reduced capital expenditures and budgets in 2020. To date, while we have seen customer maintenance, repair and overhaul ("MRO") and aftermarket spending return to pre-pandemic levels, and although we are seeing momentum in project-based capital expenditures, such oil and gas business has yet to return to pre-pandemic levels. In addition, many of our suppliers have also experienced varying lengths of production and shipping delays related to the COVID-19 pandemic and its effects, some of which continue to exist in highly affected countries. These conditions have had an adverse effect 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 impact of COVID-19 we have also experienced labor constraints and inflationary pressures.

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.

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 continue throughout 2022.

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 a 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 concluded that the reserve recorded as of March 31, 2022 is sufficient and no changes to material reserves were needed.

The following table presents the above impacts of the Russia pre-tax charge:

	Six Months Ended June 30, 2022
(Amounts in thousands)	Flowserve Pump Division		Flow Control Division		Consolidated Total
Sales	$	(5,429)	$	(2)	$	(5,431)
Cost of sales	3,510		1,112		4,622
Gross loss	(8,939)		(1,114)		(10,053)
Selling, general and administrative expense	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.

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.

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Revenue Recognition

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

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 13% and 15% of total revenue for the three month period ended June 30, 2022 and 2021, respectively, and 12% and 16% for the six month period ended June 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 87% and 85% of total revenue for the three month period ended June 30, 2022 and 2021, respectively, and 88% and 84% for the six month period ended June 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 June 30, 2022
(Amounts in thousands)	FPD		FCD		Total
Original Equipment	$	212,760	$	198,597	$	411,357
Aftermarket	401,665		69,200		470,865
	$	614,425	$	267,797	$	882,222
	Three Months Ended June 30, 2021
	FPD		FCD		Total
Original Equipment	$	220,387	$	214,097	$	434,484
Aftermarket	397,047		66,647		463,694
	$	617,434	$	280,744	$	898,178

	Six Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Total
Original Equipment	$	413,100	$	381,439	$	794,539
Aftermarket	775,312		133,429		908,741
	$	1,188,412	$	514,868	$	1,703,280
	Six Months Ended June 30, 2021
	FPD		FCD		Total
Original Equipment	$	434,541	$	406,817	$	841,358
Aftermarket	785,059		129,069		914,128
	$	1,219,600	$	535,886	$	1,755,486

Our customer sales are diversified geographically. The following tables present our revenues disaggregated by geography, based on the shipping addresses of our customers:

	Three Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Total
North America(1)	$	265,657	$	119,791	$	385,448
Latin America(2)	48,294		4,955		53,249
Middle East and Africa	84,935		22,049		106,984
Asia Pacific	97,557		72,418		169,975
Europe	117,982		48,584		166,566
	$	614,425	$	267,797	$	882,222
	Three Months Ended June 30, 2021
	FPD		FCD		Total
North America(1)	$	243,611	$	98,118	$	341,729
Latin America(2)	52,219		8,879		61,098
Middle East and Africa	69,662		26,530		96,192
Asia Pacific	119,375		88,944		208,319
Europe	132,567		58,273		190,840
	$	617,434	$	280,744	$	898,178

	Six Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Total
North America(1)	$	504,368	$	227,429	$	731,797
Latin America(2)	95,914		10,504		106,418
Middle East and Africa	156,636		43,398		200,034
Asia Pacific	199,156		140,209		339,365
Europe	232,338		93,328		325,666
	$	1,188,412	$	514,868	$	1,703,280
	Six Months Ended June 30, 2021
	FPD		FCD		Total
North America(1)	$	467,582	$	188,368	$	655,950
Latin America(2)	94,256		15,694		109,950
Middle East and Africa	152,207		54,226		206,433
Asia Pacific	244,027		167,600		411,627
Europe	261,528		109,998		371,526
	$	1,219,600	$	535,886	$	1,755,486

__________________________________

(1) North America represents the United States and Canada.

(2) Latin America includes Mexico.

On June 30, 2022, the aggregate transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations was approximately $562 million. We estimate recognition of approximately $258 million of this amount as revenue in the remainder of 2022 and an additional $304 million in 2023 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 six months ended June 30, 2022 and 2021:

(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, 2022	$	195,598	$	426	$	202,965	$	464
Revenue recognized that was included in contract liabilities at the beginning of the period	—		—		(118,177)		—
Revenue recognized in the period in excess of billings	256,608		1,659		—		—
Billings arising during the period in excess of revenue recognized	—		—		122,502		—
Amounts transferred from contract assets to receivables	(246,405)		(380)		230		—
Currency effects and other, net	(8,673)		(1,671)		(2,345)		(19)
Ending balance, June 30, 2022	$	197,128	$	34	$	205,175	$	445

(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	—		—		(112,835)		—
Revenue recognized in the period in excess of billings	321,040		54		—		—
Billings arising during the period in excess of revenue recognized	—		—		126,591		—
Amounts transferred from contract assets to receivables	(326,634)		(28)		—		—
Currency effects and other, net	(9,909)		(86)		1,109		(19)
Ending balance, June 30, 2021	$	262,231	$	1,079	$	209,092	$	803

_____________________________________

(1) Included in other assets, net.

(2) Included in retirement obligations and other liabilities.

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Allowance for Expected Credit Losses

6 Months Ended

Jun. 30, 2022

Credit Loss [Abstract]

Allowance for Expected Credit Losses

Allowance for Expected Credit Losses

The allowance for credit losses is an estimate of the credit losses expected over the life of our financial assets and instruments. We assess and measure expected credit losses on a collective basis when similar risk characteristics exist, including market, geography, credit risk and remaining duration. Financial assets and instruments that do not share risk characteristics are evaluated on an individual basis. Our estimate of the allowance is assessed and quantified using internal and external valuation information relating to past events, current conditions and reasonable and supportable forecasts over the contractual terms of an asset.

Our primary exposure to expected credit losses is through our trade receivables and contract assets. For these financial assets, we record an allowance for expected credit losses that, when deducted from the gross asset balance, presents the net amount expected to be collected. Primarily, our experience of historical credit losses provides the basis for our estimation of the allowance. We estimate the allowance based on an aging schedule and according to historical losses as determined from our history of billings and collections. Additionally, we adjust the allowance for factors that are specific to our customers’ credit risk such as financial difficulties, liquidity issues, insolvency, and country and geopolitical risks. We also consider both the current and forecasted macroeconomic conditions as of the reporting date. As identified and needed, we adjust the allowance and recognize adjustments in the income statement each period. Trade receivables are written off against the allowance in the period when the receivable is deemed to be uncollectible. Subsequent recoveries of previously written off amounts are reflected as a reduction to credit impairment losses in the condensed consolidated statements of income.

Contract assets represent a conditional right to consideration for satisfied performance obligations that become a receivable when the conditions are satisfied. Generally, contract assets are recorded when contractual billing schedules differ from revenue recognition based on timing and are managed through the revenue recognition process. Based on our historical credit loss experience, the current expected credit loss for contract assets is estimated to be approximately 1% of the asset balance.

The following table presents the changes in the allowance for expected credit losses for our trade receivables and contract assets for the six months ended June 30, 2022 and 2021:

(Amounts in thousands)	Trade receivables		Contract assets
Beginning balance, January 1, 2022	$	74,336	$	2,393
Charges to cost and expenses, net of recoveries	6,763		1,338
Write-offs	(600)		—
Currency effects and other, net	(1,723)		(27)
Ending balance, June 30, 2022	$	78,776	$	3,704
Beginning balance, January 1, 2021	$	75,176	$	3,205
Charges to cost and expenses, net of recoveries	865		—
Write-offs	(2,015)		—
Currency effects and other, net	756		(167)
Ending balance, June 30, 2021	$	74,782	$	3,038

Our allowance on long-term receivables, included in other assets, net, represent receivables with collection periods longer than 12 months and the balance primarily consists of reserved receivables associated with the national oil company in Venezuela. The following table presents the changes in the allowance for long-term receivables for the six months ended June 30, 2022 and 2021:

(Amounts in thousands)	2022		2021
Balance at January 1	$	67,696	$	67,842
Currency effects and other, net	272		(72)
Balance at June 30	$	67,968	$	67,770

We also have exposure to credit losses from off-balance sheet exposures, such as financial guarantees and standby letters of credit, where we believe the risk of loss is immaterial to our financial statements as of June 30, 2022.

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Stock-Based Compensation Plans

6 Months Ended

Jun. 30, 2022

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation Plans

Stock-Based Compensation Plans

We maintain the Flowserve Corporation 2020 Long-Term Incentive Plan (“2020 Plan”), which is a shareholder approved plan authorizing the issuance of 12,500,000 shares of our common stock in the form of restricted shares, restricted share units and performance-based units (collectively referred to as "Restricted Shares"), incentive stock options, non-statutory stock options, stock appreciation rights and bonus stock. Of the shares of common stock authorized under the 2020 Plan, 9,669,056 were available for issuance as of June 30, 2022. Restricted Shares primarily vest over a three year period. Restricted Shares granted to employees who retire and have achieved at least 55 years of age and 10 years of service continue to vest over the original vesting period ("55/10 Provision"). As of June 30, 2022, 114,943 stock options were outstanding. No stock options were granted or vested during the six months ended June 30, 2022 and 2021.

 Restricted Shares – Awards of Restricted Shares are valued at the closing market price of our common stock on the date of grant. The unearned compensation is amortized to compensation expense over the vesting period of the restricted shares, except for awards related to the 55/10 Provision which are expensed in the period granted. We had unearned compensation of $34.0 million and $24.2 million at June 30, 2022 and December 31, 2021, respectively, which is expected to be recognized over a remaining weighted-average period of approximately one year. These amounts will be recognized into net earnings in prospective periods as the awards vest. The total fair value of Restricted Shares vested during the three months ended June 30, 2022 and 2021 was $1.9 million and $0.9 million, respectively. The total fair value of Restricted Shares vested during the six months ended June 30, 2022 and 2021 was $22.5 million and $24.4 million, respectively.

We recorded stock-based compensation expense of $4.6 million ($5.9 million pre-tax) and $5.1 million ($6.7 million pre-tax) for the three months ended June 30, 2022 and 2021, respectively. We recorded stock-based compensation expense of $13.1

million ($16.9 million pre-tax) and $12.7 million ($16.5 million pre-tax) for the six months ended June 30, 2022 and 2021, respectively.

The following table summarizes information regarding Restricted Shares:

	Six Months Ended June 30, 2022
	Shares	Weighted Average Grant-Date Fair Value
Number of unvested shares:
Outstanding as of January 1, 2022	1,671,011	$	43.06
Granted	967,278	32.93
Vested	(523,055)	43.03
Forfeited	(214,147)	45.72
Outstanding as of June 30, 2022	1,901,087	$	37.62

Unvested Restricted Shares outstanding as of June 30, 2022 included approximately 481,000 units with performance-based vesting provisions issuable in common stock and vest upon the achievement of pre-defined performance metrics. Targets for outstanding performance awards are based on our average return on invested capital, total shareholder return ("TSR") or free cash flow as a percent of net income over a three-year period. Performance units issued in 2022 and 2021 include a secondary measure, relative TSR, which can increase or decrease the number of vesting units by 15% depending on the Company's performance versus peers. Performance units issued in 2022 and 2021 have a vesting percentage between 0% and 230%. Performance units issued in 2020 have a vesting percentage between 0% and 200%. Compensation expense is recognized ratably over a cliff-vesting period of 36 months, based on the fair value of our common stock on the date of grant, adjusted for actual forfeitures. During the performance period, earned and unearned compensation expense is adjusted based on changes in the expected achievement of the performance targets for all performance-based units granted except for the TSR-based units. Vesting provisions range from 0 to approximately 1,059,000 shares based on performance targets. As of June 30, 2022, we estimate vesting of approximately 410,000 shares based on expected achievement of performance targets.

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Derivative Instruments and Hedges

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedges

Derivative Instruments and Hedges

Our risk management and foreign currency derivatives and hedging policy specifies the conditions under which we may enter into derivative contracts. See Notes 1 and 9 to our consolidated financial statements included in our 2021 Annual Report and Note 7 of this Quarterly Report for additional information on our derivatives. We enter into foreign exchange forward contracts to hedge our cash flow risks associated with transactions denominated in currencies other than the local currency of the operation engaging in the transaction. We have not elected hedge accounting for our foreign exchange forward contracts and the changes in the fair values are recognized immediately in our condensed consolidated statements of income.

Foreign exchange forward contracts with third parties had a notional value of $413.9 million and $425.2 million at June 30, 2022 and December 31, 2021, respectively. At June 30, 2022, the length of foreign exchange forward contracts currently in place ranged from 21 days to 32 months.

We are exposed to risk from credit-related losses resulting from nonperformance by counterparties to our financial instruments. We perform credit evaluations of our counterparties under foreign exchange forward contracts agreements and expect all counterparties to meet their obligations. We have not experienced credit losses from our counterparties.

The fair values of foreign exchange forward contracts are summarized below:

	June 30,		December 31,
(Amounts in thousands)	2022		2021
Current derivative assets	$	831	$	740
Noncurrent derivative assets	—		2
Current derivative liabilities	5,050		2,924
Noncurrent derivative liabilities	112		82

Current and noncurrent derivative assets are reported in our condensed consolidated balance sheets in prepaid expenses and other and other assets, net, respectively. Current and noncurrent derivative liabilities are reported in our condensed consolidated balance sheets in accrued liabilities and retirement obligations and other liabilities, respectively.

The impact of net changes in the fair values of foreign exchange forward contracts are summarized below:

	Three Months Ended June 30,				Six Months Ended June 30,
(Amounts in thousands)	2022		2021		2022		2021
Gains (losses) recognized in income	$	2,592	$	(4,312)	$	233	$	1,793

Gains and losses recognized in our condensed consolidated statements of income for foreign exchange forward contracts are classified as other income (expense), net.

As a means of managing the volatility of foreign currency exposure with the Euro/U.S. dollar exchange rate, we enter into cross-currency swap agreements as a hedge of our Euro investment in certain of our international subsidiaries. Accordingly, on April 14, 2021 and March 9, 2021, we entered into cross currency swap agreements, with both having termination dates of October 1, 2030 and the March 9, 2021 cross currency swap having an early termination date of March 11, 2025. Also, during the third quarter of 2020 we entered into a cross currency swap agreement with termination date of October 1, 2030 and an early termination date of September 22, 2025. The swap agreements are designated as net investment hedges and as of June 30, 2022 the combined notional value of these swaps was €423.2 million. The swaps are classified as Level II under the fair value hierarchy.

The fair values of our cross-currency swaps are summarized below:

	June 30,		December 31,
(Amounts in thousands)	2022		2021
Other assets, net	$	68,990	$	23,129

We exclude the interest accruals on the swaps from the assessment of hedge effectiveness and recognize the interest accruals in earnings within interest expense. For each reporting period, the change in the fair value of the swaps attributable to changes in the spot rate and differences between the change in the fair value of the excluded components and the amounts recognized in earnings under the swap accrual process are reported in accumulated other comprehensive loss ("AOCL") on our consolidated balance sheet. For the three and six months ending June 30, 2022, an interest accrual of $2.1 million and $4.2 million, respectively, was recognized within interest expense in our condensed consolidated statements of income. For the three months and six months ending June 30, 2021, an interest accrual of $1.8 million and $2.4 million, respectively, was recognized within interest expense.

The cumulative net investment hedge (gains) losses, net of deferred taxes, under cross-currency swaps recorded in AOCL on our condensed consolidated balance sheet are summarized below:

	Three Months Ended June 30,				Six Months Ended June 30,
(Amounts in thousands)	2022		2021		2022		2021
(Gain) loss-included component (1)	$	(18,870)	$	1,798	$	(44,256)	$	185
(Gain) loss-excluded component (2)	(7,634)		(11,749)		(8,508)		3,890
(Gain) loss recognized in AOCL	$	(26,504)	$	(9,951)	$	(52,764)	$	4,075

_____________________________________________

(1) Change in the fair value of the swaps attributable to changes in spot rates.

(2) Change in the fair value of the swaps due to changes other than those attributable to spot rates.

In March 2015, we designated €255.7 million of our 1.25% EUR 2022 Senior Notes ("2022 Euro Senior Notes") as a net investment hedge of our Euro investment in certain of our international subsidiaries. On September 22, 2020, we increased the designated hedged value on the 2022 Euro Senior Notes to €336.3 million, which reflected the remaining balance of the 2022 Euro Senior Notes. For each reporting period, the change in the carrying value due to the remeasurement of the effective portion was reported in AOCL on our condensed consolidated balance sheet and the remaining change in the carrying value of the ineffective portion, if any, was recognized in other income (expense), net in our condensed consolidated statements of income. As a result of the redemption of our 2022 Euro Senior Notes in the first quarter of 2021, we dedesignated the hedged value of our net investment hedge.

Prior to the dedesignation, the cumulative impact recorded in AOCL on our condensed consolidated balance sheet from the change in carrying value due to the remeasurement of the effective portion of the net investment hedge is summarized below:

	Three Months Ended June 30,				Six Months Ended June 30,
(Amounts in thousands)	2022		2021		2022		2021
Loss recognized in AOCL	$	—	$	—	$	—	$	29,554

We use the spot method to measure the effectiveness of our net investment hedges and evaluate the effectiveness on a prospective basis at the beginning of each quarter. We did not record any ineffectiveness during the three and six months ended June 30, 2022 and 2021, respectively.

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Debt

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Debt

Debt

Debt, including finance lease obligations, net of discounts and debt issuance costs, consisted of:

	June 30,		December 31,
(Amounts in thousands, except percentages)	2022		2021
3.50% USD Senior Notes due October 1, 2030, net of unamortized discount and debt issuance costs of $5,335 and $5,611, respectively	$	494,665	$	494,389
2.80% USD Senior Notes due January 15, 2032, net of unamortized discount and debt issuance costs of $6,003 and $6,273, respectively	493,997		493,727
Term Loan Facility, interest rate of 3.50% at June 30, 2022 and 1.45% at December 31, 2021, net of debt issuance costs of $540 and $639, respectively	276,960		291,861
Finance lease obligations and other borrowings	22,320		22,851
Debt and finance lease obligations	1,287,942		1,302,828
Less amounts due within one year	46,306		41,058
Total debt due after one year	$	1,241,636	$	1,261,770

Senior Notes

On March 19, 2021, we redeemed the remaining $400.9 million of our 2022 Euro Senior Notes and recorded a loss on early extinguishment of $7.6 million in the first quarter of 2021, which included the impact of a $6.6 million make-whole premium.

Senior Credit Facility

As discussed in Note 13 to our consolidated financial statements included in our 2021 Annual Report, we amended our credit agreement ("Amended and Restated Credit Agreement") under our Senior Credit Facility ("Credit Facility") with Bank of America, N.A. ("Administrative Agent") and the other lenders to provide greater flexibility in maintaining adequate liquidity and access to available borrowings. The Amended and Restated Credit Agreement, (i) retained, from the previous credit agreement, the $800.0 million unsecured Revolving Credit Facility, which includes a $750.0 million sublimit for the issuance of letters of credit and a $30.0 million sublimit for swing line loans, (ii) provides for an up to $300 million unsecured Term Loan Facility (the "Term Loan"), (iii) extends the maturity date of the agreement to September 13, 2026, (iv) reduces commitment fees, (v) extends net leverage ratio covenant definition through the maturity of the agreement, and (vi) provides the ability to make certain adjustments to the otherwise applicable commitment fee, interest rate and letter of credit fees based on the Company’s performance against to-be-established key performance indicators with respect to certain of the Company’s environmental, social and governance targets.

The interest rates per annum applicable to the Revolving Credit Facility are unchanged under the Amended and Restated Credit Agreement. The interest rates per annum applicable to the Credit Facility, other than with respect to swing line loans, are LIBOR plus between 1.000% to 1.750%, depending on our debt rating by either Moody’s Investors Service, Inc. ("Moody's") or Standard & Poor’s Financial Services LLC ("S&P"), or, at our option, the Base Rate (as defined in the Amended and Restated Credit Agreement) plus between 0.000% to 0.750% depending on our debt rating by either Moody’s or S&P. At June 30, 2022, the interest rate on the Revolving Credit Facility was LIBOR plus 1.375% in the case of LIBOR loans and the Base Rate plus 0.375% in the case of Base Rate loans. In addition, a commitment fee is payable quarterly in arrears on the daily unused portions of the Credit Facility. The commitment fee will be between 0.080% and 0.250% of unused amounts under the Credit Facility depending on our debt rating by either Moody’s or S&P. The commitment fee was 0.175% (per annum) during the three and six ended June 30, 2022.

Under the terms and conditions of the Amended and Restated Credit Agreement, interest rates per annum applicable to the Term Loan are stated as LIBOR plus between 0.875% to 1.625%, depending on the Company’s debt rating by either Moody’s

or S&P, or, at the option of the Company, the Base Rate plus between 0.000% to 0.625% depending on the Company’s debt rating by either Moody’s or S&P.

As of June 30, 2022 and December 31, 2021, we had no revolving loans outstanding and we had outstanding letters of credit of $66.2 million and $78.3 million at June 30, 2022 and December 31, 2021, respectively. After consideration of the financial covenants under our Senior Credit Facility and outstanding letters of credit, as of June 30, 2022, the amount available for borrowings was limited to $277.1 million. As of December 31, 2021, the amount available for borrowings under our Revolving Credit Facility was $614.2 million.

Our compliance with applicable financial covenants under the Senior Notes and Credit Facility are tested quarterly. We were in compliance with all applicable covenants as of June 30, 2022. We have scheduled repayments on our Term Loan of $7.5 million due in the third quarter of 2022 and $10.0 million due in each of the subsequent three quarters through June 30, 2023

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Fair Value

6 Months Ended

Jun. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value

Fair Value

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied. Assets and liabilities recorded at fair value in our condensed consolidated balance sheets are categorized by hierarchical levels based upon the level of judgment associated with the inputs used to measure their fair values. Recurring fair value measurements are limited to investments in derivative instruments. The fair value measurements of our derivative instruments are determined using models that maximize the use of the observable market inputs including interest rate curves and both forward and spot prices for currencies, and are classified as Level II under the fair value hierarchy. The fair values of our derivatives are included in Note 5.

The carrying value of our financial instruments as reflected in our condensed consolidated balance sheets approximates fair value, with the exception of our long-term debt. The estimated fair value of our long-term debt, excluding the Senior Notes, approximates the carrying value and is determined using Level II inputs under the fair value hierarchy. The carrying value of our debt is included in Note 6. The estimated fair value of our Senior Notes at June 30, 2022 was $832.3 million compared to the carrying value of $988.7 million. The estimated fair value of the Senior Notes is based on Level I quoted market rates. The carrying amounts of our other financial instruments (e.g., cash and cash equivalents, accounts receivable, net, accounts payable and short-term debt) approximated fair value due to their short-term nature at June 30, 2022 and December 31, 2021.

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Inventories

6 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

Inventories

InventoriesInventories, net consisted of the following:

	June 30,		December 31,
(Amounts in thousands)	2022		2021
Raw materials	$	348,402	$	318,348
Work in process	273,677		242,143
Finished goods	223,211		213,096
Less: Excess and obsolete reserve	(96,370)		(95,300)
Inventories, net	$	748,920	$	678,287

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Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The following is a reconciliation of net earnings of Flowserve Corporation and weighted average shares for calculating net earnings per common share. Earnings per weighted average common share outstanding was calculated as follows:

	Three Months Ended June 30,
(Amounts in thousands, except per share data)	2022		2021
Net earnings of Flowserve Corporation	$	44,777	$	45,354
Dividends on restricted shares not expected to vest	—		—
Earnings attributable to common and participating shareholders	$	44,777	$	45,354
Weighted average shares:
Common stock	130,626		130,279
Participating securities	40		26
Denominator for basic earnings per common share	130,666		130,305
Effect of potentially dilutive securities	579		499
Denominator for diluted earnings per common share	131,245		130,804
Earnings per common share:
Basic	$	0.34	$	0.35
Diluted	0.34		0.35

	Six Months Ended June 30,
(Amounts in thousands, except per share data)	2022		2021
Net earnings of Flowserve Corporation	$	28,960	$	59,434
Dividends on restricted shares not expected to vest	—		—
Earnings attributable to common and participating shareholders	$	28,960	$	59,434
Weighted average shares:
Common stock	130,518		130,342
Participating securities	36		24
Denominator for basic earnings per common share	130,554		130,366
Effect of potentially dilutive securities	594		539
Denominator for diluted earnings per common share	131,148		130,905
Earnings per common share:
Basic	$	0.22	$	0.46
Diluted	0.22		0.45

Diluted earnings per share above is based upon the weighted average number of shares as determined for basic earnings per share plus shares potentially issuable in conjunction with stock options and Restricted Shares.

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Legal Matters and Contingencies

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Legal Matters and Contingencies

Legal Matters and Contingencies

Asbestos-Related Claims

We are a defendant in a substantial number of lawsuits that seek to recover damages for personal injury allegedly caused by exposure to asbestos-containing products manufactured and/or distributed by our heritage companies in the past. Typically, these lawsuits have been brought against multiple defendants in state and federal courts. While the overall number of asbestos-related claims in which we or our predecessors have been named has generally declined in recent years, there can be no assurance that this trend will continue, or that the average cost per claim to us will not further increase. Asbestos-containing materials incorporated into any such products were encapsulated and used as internal components of process equipment, and we do not believe that significant emission of asbestos fibers occurred during the use of this equipment.

Our practice is to vigorously contest and resolve these claims, and we have been successful in resolving a majority of claims with little or no payment, other than legal fees. Activity related to asbestos claims during the periods indicated was as follows:

	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
Beginning claims(1)	8,800	8,445	8,712	8,366
New claims	622	603	1,295	1,232
Resolved claims	(505)	(479)	(1,090)	(1,023)
Other(2)	—	(10)	—	(16)
Ending claims(1)	8,917	8,559	8,917	8,559

____________________

(1) Beginning and ending claims data in each period excludes inactive claims, as the Company considers it unlikely that inactive cases will be pursued further by the respective plaintiffs. A claim is classified as inactive either due to inactivity over a period of time or if designated as inactive by the applicable court.

(2) Represents the net change in claims as a result of the reclassification of active cases as inactive and inactive cases as active during the period indicated. Cases moved from active to inactive status are removed from the claims count without being accounted for as a "Resolved claim", and cases moved from inactive status to active status are added back to the claims count without being accounted for as a “New claim”.

The following table presents the changes in the estimated asbestos liability:

(Amounts in thousands)	2022		2021
Beginning balance, January 1,	$	94,423	$	99,530
Asbestos liability adjustments, net	—		1,000
Cash payment activity	(2,460)		(3,761)
Other, net	(1,819)		(1,284)
Ending balance, June 30,	$	90,144	$	95,485

During the three and six months ended June 30, 2022 the Company incurred expenses (net of insurance) of approximately $1.8 million and $3.6 million, respectively, compared to $1.8 million and $4.5 million, respectively, for the same periods in 2021 to defend, resolve or otherwise dispose of outstanding claims, including legal and other related expenses. These expenses are included within SG&A in our condensed consolidated statements of income.

The Company had cash inflows (outflows) (net of insurance and/or indemnity) to defend, resolve or otherwise dispose of outstanding claims, including legal and other related expenses of approximately $2.7 million and $(7.0) million, respectively, during the six months ended June 30, 2022 and 2021, respectively.

Historically, a high percentage of resolved claims have been covered by applicable insurance or indemnities from other companies, and we believe that a substantial majority of existing claims should continue to be covered by insurance or indemnities, in whole or in part.

We believe that our reserve for asbestos claims and the receivable for recoveries from insurance carriers that we have recorded for these claims reflects reasonable and probable estimates of these amounts. Our estimate of our ultimate exposure for asbestos claims, however, is subject to significant uncertainties, including the timing and number and types of new claims, unfavorable court rulings, judgments or settlement terms and ultimate costs to settle. Additionally, the continued viability of carriers may also impact the amount of probable insurance recoveries. We believe that these uncertainties could have a material adverse impact on our business, financial condition, results of operations and cash flows, though we currently believe the likelihood is remote.

Additionally, we have claims pending against certain insurers that, if resolved more favorably than reflected in the recorded receivables, would result in discrete gains in the applicable quarter.

Other Claims

We are also a defendant in a number of other lawsuits, including product liability claims, that are insured, subject to the applicable deductibles, arising in the ordinary course of business, and we are also involved in other uninsured routine litigation incidental to our business. We currently believe none of such litigation, either individually or in the aggregate, is material to our business, operations or overall financial condition. However, litigation is inherently unpredictable, and resolutions or dispositions of claims or lawsuits by settlement or otherwise could have an adverse impact on our financial position, results of operations or cash flows for the reporting period in which any such resolution or disposition occurs.

Although none of the aforementioned potential liabilities can be quantified with absolute certainty except as otherwise indicated above, we have established or adjusted reserves covering exposures relating to contingencies, to the extent believed to be reasonably estimable and probable based on past experience and available facts. While additional exposures beyond these reserves could exist, they currently cannot be estimated. We will continue to evaluate and update the reserves as necessary and appropriate.

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Pension and Postretirement Benefits

6 Months Ended

Jun. 30, 2022

Retirement Benefits [Abstract]

Pension and Postretirement Benefits

Pension and Postretirement Benefits

Components of the net periodic cost for pension and postretirement benefits for the three months ended June 30, 2022 and 2021 were as follows:

	U.S. Defined Benefit Plans				Non-U.S. Defined Benefit Plans				Postretirement Medical Benefits
(Amounts in millions)	2022		2021		2022		2021		2022		2021
Service cost	$	6.1	$	5.8	$	1.4	$	1.9	$	—	$	—
Interest cost	3.2		2.9		1.6		1.4		0.1		0.1
Expected return on plan assets	(6.2)		(6.2)		(1.3)		(1.7)		—		—
Amortization of unrecognized prior service cost and other costs	—		0.1		0.2		0.1		—		0.1
Amortization of unrecognized net loss	0.7		2.0		0.7		1.2		0.1		—
Net periodic cost recognized	$	3.8	$	4.6	$	2.6	$	2.9	$	0.2	$	0.2

Components of the net periodic cost for pension and postretirement benefits for the six months ended June 30, 2022 and 2021 were as follows:

	U.S. Defined Benefit Plans				Non-U.S. Defined Benefit Plans				Postretirement Medical Benefits
(Amounts in millions)	2022		2021		2022		2021		2022		2021
Service cost	$	12.4	$	12.6	$	3.0	$	3.7	$	—	$	—
Interest cost	6.6		6.0		3.3		2.8		0.2		0.2
Expected return on plan assets	(12.7)		(12.7)		(2.9)		(3.2)		—		—
Amortization of unrecognized prior service cost and other costs	0.1		0.1		0.3		0.2		0.1		0.1
Amortization of unrecognized net loss	1.7		3.9		1.4		2.3		0.1		—
Net periodic cost recognized	$	8.1	$	9.9	$	5.1	$	5.8	$	0.4	$	0.3

The components of net periodic cost for pension and postretirement benefits other than service costs are included in other income (expense), net in our condensed consolidated statements of income.

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Shareholders' Equity

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Shareholders' Equity

Shareholders’ Equity

Dividends – Generally, our dividend date-of-record is in the last month of the quarter, and the dividend is paid the following month. Any subsequent dividends will be reviewed by our Board of Directors and declared in its discretion.

Dividends declared per share were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Dividends declared per share	$	0.20	$	0.20	$	0.40	$	0.40

Share Repurchase Program – In 2014, our Board of Directors approved a $500.0 million share repurchase authorization. Our share repurchase program does not have an expiration date and we reserve the right to limit or terminate the repurchase program at any time without notice.

We had no repurchases of shares of our outstanding common stock during three and six months ended June 30, 2022, compared to 311,000 and 440,000 shares, respectively, repurchased for $12.5 million and $17.5 million, respectively, for the same periods in 2021. As of June 30, 2022, we had $96.1 million of remaining capacity under our current share repurchase program.

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Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

For the three months ended June 30, 2022, we earned $57.7 million before taxes and recorded a provision for income taxes of $11.6 million resulting in an effective tax rate of 20.1%. For the six months ended June 30, 2022, we earned $47.2 million before taxes and recorded a provision for income taxes of $14.8 million resulting in an effective tax rate of 31.4%. The effective tax rate varied from the U.S. federal statutory rate for the three ended June 30, 2022 primarily due to the net impact of foreign operations, partially offset by BEAT. The effective tax rate varied from the U.S. federal statutory rate for the six months ended June 30, 2022 primarily due to the current and anticipated tax impact of the Russia-Ukraine conflict on our business, partially offset by the net impact of foreign operations.

For the three months ended June 30, 2021, we earned $50.5 million before taxes and provided for income taxes of $2.7 million resulting in an effective tax rate of 5.4%. For the six months ended June 30, 2021, we earned $71.4 million before taxes and provided for income taxes of $6.5 million resulting in an effective tax rate of 9.1%. The effective tax rate varied from the U.S. federal statutory rate for the three months ended June 30, 2021 primarily due to the net impact of foreign operations and favorable resolution of audits in foreign jurisdictions. The effective tax rate varied from the U.S. federal statutory rate for the six months ended June 30, 2021, primarily due to the net impact of foreign operations, the reversal of certain deferred tax liabilities as a result of restructuring specific aspects of our global financing arrangements and higher withholding taxes related to transactions with and amongst various foreign subsidiaries.

As of June 30, 2022, the amount of unrecognized tax benefits increased by $6.3 million from December 31, 2021. With limited exception, we are no longer subject to U.S. federal income tax audits for years through 2017, state and local income tax audits for years through 2015 or non-U.S. income tax audits for years through 2014. We are currently under examination for various years in Canada, China, Germany, India, Indonesia, Italy, Malaysia, Mexico, the Philippines, Saudi Arabia, the U.S. and Venezuela.

It is reasonably possible that within the next 12 months the effective tax rate will be impacted by the resolution of some or all of the matters audited by various taxing authorities. It is also reasonably possible that we will have the statute of limitations close in various taxing jurisdictions within the next 12 months. As such, we estimate we could record a reduction in our tax expense of approximately $14 million within the next 12 months.

The Company maintains a full valuation allowance against the net deferred tax assets in certain foreign tax jurisdictions as of June 30, 2022. As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of net deferred tax assets. It is possible that within the next 12 months there may be sufficient positive evidence to release a portion or all of the valuation allowance in certain foreign tax jurisdictions. Release of these valuation allowances would result in a benefit to income tax expense for the period the release is recorded, which could have a material impact on net earnings. The timing and amount of the potential valuation allowance release are subject to significant management judgment and the level of profitability achieved.

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Segment Information

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information

The following is a summary of the financial information of the reportable segments reconciled to the amounts reported in the condensed consolidated financial statements:

	Three Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		Eliminations and All Other		Consolidated Total
Sales to external customers	$	614,425	$	267,797	$	882,222	$	—	$	882,222
Intersegment sales	445		609		1,054		(1,054)		—
Segment operating income	57,346		30,369		87,715		(27,383)		60,332
	Three Months Ended June 30, 2021
	FPD		FCD		Subtotal–Reportable Segments		Eliminations and All Other		Consolidated Total
Sales to external customers	$	617,434	$	280,744	$	898,178	$	—	$	898,178
Intersegment sales	257		416		673		(673)		—
Segment operating income	67,845		37,229		105,074		(32,912)		72,162

	Six Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments			Eliminations and All Other		Consolidated Total
Sales to external customers	$	1,188,412	$	514,868	$	1,703,280	0	$	—	$	1,703,280
Intersegment sales	2,043		1,393		3,436			(3,436)		—
Segment operating income	78,347		45,606		123,953			(56,253)		67,700
	Six Months Ended June 30, 2021
	FPD		FCD		Subtotal–Reportable Segments			Eliminations and All Other		Consolidated Total
Sales to external customers	$	1,219,600	$	535,886	$	1,755,486	0	$	—	$	1,755,486
Intersegment sales	733		1,096		1,829			(1,829)		—
Segment operating income	121,627		61,942		183,569			(55,304)		128,265

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Accumulated Other Comprehensive Income (Loss)

Accumulated Other Comprehensive Income (Loss)

The following table presents the changes in AOCL, net of tax for the three months ended June 30, 2022 and 2021:

	2022								2021
(Amounts in thousands)	Foreign currency translation items(1)		Pension and other post-retirement effects		Cash flow hedging activity (2)		Total		Foreign currency translation items(1)		Pension and other post-retirement effects		Cash flow hedging activity (2)		Total
Balance - April 1	$	(472,769)	$	(98,078)	$	(1,307)	$	(572,154)	$	(467,326)	$	(142,464)	$	(286)	$	(610,076)
Other comprehensive income (loss) before reclassifications (3)	(64,160)		5,415		—		(58,745)		13,998		(713)		—		13,285
Amounts reclassified from AOCL	—		1,155		29		1,184		—		2,772		15		2,787
Net current-period other comprehensive income (loss) (3)	(64,160)		6,570		29		(57,561)		13,998		2,059		15		16,072
Balance - June 30	$	(536,929)	$	(91,508)	$	(1,278)	$	(629,715)	$	(453,328)	$	(140,405)	$	(271)	$	(594,004)

________________________________

(1) Includes foreign currency translation adjustments attributable to noncontrolling interests of $5.9 million and $6.1 million at April 1, 2022 and 2021, respectively, and $5.9 million and $6.1 million at June 30, 2022 and 2021, respectively. Also includes the impacts from the changes in fair value of our cross-currency swaps, which were $26.5 million and $10.0 million for the three months ended June 30, 2022 and 2021, respectively.

(2) Other comprehensive loss before reclassifications and amounts reclassified from AOCL to interest expense related to designated cash flow hedges.

(3) Amounts in parentheses indicate an increase to AOCL.

The following table presents the reclassifications out of AOCL:

		Three Months Ended June 30,
(Amounts in thousands)	Affected line item in the statement of income	2022(1)		2021(1)
Pension and other postretirement effects
Amortization of actuarial losses(2)	Other income (expense), net	$	(1,468)	$	(3,089)
Prior service costs(2)	Other income (expense), net	(144)		(155)
	Tax benefit	457		472
	Net of tax	$	(1,155)	$	(2,772)
Cash flow hedging activity
Amortization of Treasury rate lock	Interest expense	$	(38)	$	(20)
	Tax benefit	9		5
	Net of tax	$	(29)	$	(15)

__________________________________

(1) Amounts in parentheses indicate decreases to income. None of the reclassified amounts have a noncontrolling interest component.

(2) These AOCL components are included in the computation of net periodic pension cost. See Note 11 for additional details.

The following table presents the changes in AOCL, net of tax for the six months ended June 30, 2022 and 2021:

	2022								2021
(Amounts in thousands)	Foreign currency translation items(1)		Pension and other post-retirement effects		Cash flow hedging activity (2)		Total		Foreign currency translation items(1)		Pension and other post-retirement effects		Cash flow hedging activity (2)		Total
Balance - January 1	$	(456,025)	$	(101,665)	$	(1,336)	$	(559,026)	$	(456,437)	$	(146,723)	$	(488)	$	(603,648)
Other comprehensive income (loss) before reclassifications (3)	(80,904)		7,373		—		(73,531)		3,109		804		—		3,913
Amounts reclassified from AOCL	—		2,784		58		2,842		—		5,514		217		5,731
Net current-period other comprehensive income (loss) (3)	(80,904)		10,157		58		(70,689)		3,109		6,318		217		9,644
Balance - June 30	$	(536,929)	$	(91,508)	$	(1,278)	$	(629,715)	$	(453,328)	$	(140,405)	$	(271)	$	(594,004)

________________________________

(1) Includes foreign currency translation adjustments attributable to noncontrolling interests of $4.6 million and $5.9 million at January 1, 2022 and 2021, respectively, and $5.9 million and $6.1 million at June 30, 2022 and 2021, respectively. Also includes the impacts from the changes in fair value of our cross-currency swaps, which were $35.1 million and $9.8 million for the six months ended June 30, 2022 and 2021, respectively.

(2) Other comprehensive loss before reclassifications and amounts reclassified from AOCL to interest expense related to designated cash flow hedges.

(3) Amounts in parentheses indicate an increase to AOCL.

The following table presents the reclassifications out of AOCL:

		Six Months Ended June 30,
(Amounts in thousands)	Affected line item in the statement of income	2022(1)		2021(1)
Pension and other postretirement effects
Amortization of actuarial losses(2)	Other income (expense), net	$	(3,200)	$	(6,148)
Prior service costs(2)	Other income (expense), net	(295)		(308)
	Tax benefit	711		942
	Net of tax	$	(2,784)	$	(5,514)
Cash flow hedging activity
Amortization of Treasury rate lock	Interest expense	$	(76)	$	(284)
	Tax benefit	18		67
	Net of tax	$	(58)	$	(217)

__________________________________

(1) Amounts in parentheses indicate decreases to income. None of the reclassified amounts have a noncontrolling interest component.

(2) These AOCL components are included in the computation of net periodic pension cost. See Note 11 for additional details.

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Realignment Programs

6 Months Ended

Jun. 30, 2022

Restructuring and Related Activities [Abstract]

Realignment Programs

Realignment Programs

In the second quarter of 2020, we identified and initiated certain realignment activities to right-size our organizational operations based on the current business environment, with the overall objective to reduce our workforce costs, including manufacturing optimization through the consolidation of certain facilities ("Realignment Program"). The realignment activities consist of restructuring and non-restructuring charges. Restructuring charges represent costs associated with the relocation of certain business activities and facility closures and include related severance costs. Non-restructuring charges are primarily employee severance associated with the workforce reductions. Expenses are primarily reported in cost of sales ("COS") or selling, general and administrative ("SG&A"), as applicable, in our consolidated statements of income. We anticipate a total investment in these activities of approximately $95 million and the vast majority of the charges were incurred in 2020 and 2021 with the remainder to be incurred in 2022. There are certain other realignment activities that are currently being evaluated, but have not yet been finalized and therefore are not included in the above anticipated total investment.

Generally, the aforementioned charges will be paid in cash, except for asset write-downs, which are non-cash charges. The following is a summary of total charges, net of adjustments, incurred related to our Realignment Program:

	Three Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	604	$	76	$	680	$	—	$	680
SG&A	—		—		—		—		—
	$	604	$	76	$	680	$	—	$	680
Non-Restructuring Charges
COS	$	(225)	$	12	$	(213)	$	—	$	(213)
SG&A	2		33		35		27		62
	$	(223)	$	45	$	(178)	$	27	$	(151)
Total Realignment Charges
COS	$	379	$	88	$	467	$	—	$	467
SG&A	2		33		35		27		62
Total	$	381	$	121	$	502	$	27	$	529

	Three Months Ended June 30, 2021
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	2,016	$	171	$	2,187	$	—	$	2,187
SG&A	667		—		667		—		667
	$	2,683	$	171	$	2,854	$	—	$	2,854
Non-Restructuring Charges
COS	$	1,558	$	80	$	1,638	$	—	$	1,638
SG&A	338		(129)		209		915		1,124
	$	1,896	$	(49)	$	1,847	$	915	$	2,762
Total Realignment Charges
COS	$	3,574	$	251	$	3,825	$	—	$	3,825
SG&A	1,005		(129)		876		915		1,791
Total	$	4,579	$	122	$	4,701	$	915	$	5,616

	Six Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	885	$	71	$	956	$	—	$	956
SG&A	—		—		—		—		—
	$	885	$	71	$	956	$	—	$	956
Non-Restructuring Charges
COS	$	(589)	$	(37)	$	(626)	$	(61)	$	(687)
SG&A	77		50		127		(266)		(139)
	$	(512)	$	13	$	(499)	$	(327)	$	(826)
Total Realignment Charges
COS	$	296	$	34	$	330	$	(61)	$	269
SG&A	77		50		127		(266)		(139)
Total	$	373	$	84	$	457	$	(327)	$	130

	Six Months Ended June 30, 2021
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	6,043	$	470	$	6,513	$	—	$	6,513
SG&A	667		(9)		658		—		658
	$	6,710	$	461	$	7,171	$	—	$	7,171
Non-Restructuring Charges
COS	$	5,449	$	678	$	6,127	$	590	$	6,717
SG&A	495		739		1,234		4,195		5,429
	$	5,944	$	1,417	$	7,361	$	4,785	$	12,146
Total Realignment Charges
COS	$	11,492	$	1,148	$	12,640	$	590	$	13,230
SG&A	1,162		730		1,892		4,195		6,087
Total	$	12,654	$	1,878	$	14,532	$	4,785	$	19,317

The following is a summary of total inception to date charges, net of adjustments, related to the Realignment Program:

	Inception to Date
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	26,761	$	2,107	$	28,868	$	—	$	28,868
SG&A	716		333		1,049		(17)		1,032
	$	27,477	$	2,440	$	29,917	$	(17)	$	29,900
Non-Restructuring Charges
COS	$	24,818	$	686	$	25,504	$	581	$	26,085
SG&A	11,126		5,312		16,438		21,529		37,967
	$	35,944	$	5,998	$	41,942	$	22,110	$	64,052
Total Realignment Charges
COS	$	51,579	$	2,793	$	54,372	$	581	$	54,953
SG&A	11,842		5,645		17,487		21,512		38,999
Total	$	63,421	$	8,438	$	71,859	$	22,093	$	93,952

Restructuring charges represent costs associated with the relocation or reorganization of certain business activities and facility closures and include costs related to employee severance at closed facilities, contract termination costs, asset write-downs and other costs. Severance costs primarily include costs associated with involuntary termination benefits. Contract termination costs include costs related to the termination of operating leases or other contract termination costs. Asset write-downs include accelerated depreciation of fixed assets, accelerated amortization of intangible assets, divestiture of certain non-strategic assets and inventory write-downs. Other costs generally include costs related to employee relocation, asset relocation, vacant facility costs (i.e., taxes and insurance) and other charges.

The following is a summary of restructuring charges, net of adjustments, for our restructuring activities related to our Realignment Program:

	Three Months Ended June 30, 2022
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs		Other		Total
COS	$	570	$	—	$	19	$	91	$	680
SG&A	—		—		—		—		—
Total	$	570	$	—	$	19	$	91	$	680

	Three Months Ended June 30, 2021
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs		Other		Total
COS	$	(154)	$	—	$	(849)	$	3,190	$	2,187
SG&A	168		—		—		499		667
Total	$	14	$	—	$	(849)	$	3,689	$	2,854

	Six Months Ended June 30, 2022
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs		Other		Total
COS	$	568	$	—	$	259	$	129	$	956
SG&A	—		—		—		—		—
Total	$	568	$	—	$	259	$	129	$	956

	Six Months Ended June 30, 2021
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs		Other		Total
COS	$	1,219	$	—	$	1,341	$	3,953	$	6,513
SG&A	168		—		—		490		658
Total	$	1,387	$	—	$	1,341	$	4,443	$	7,171

The following is a summary of total inception to date restructuring charges, net of adjustments, related to our Realignment Program:

	Inception to Date
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs		Other		Total
COS	$	16,772	$	86	$	4,354	$	7,656	$	28,868
SG&A	251		—		14		767		1,032
Total	$	17,023	$	86	$	4,368	$	8,423	$	29,900

The following represents the activity, primarily severance charges from reductions in force, related to the restructuring reserves for the six months ended June 30, 2022 and 2021:

(Amounts in thousands)	2022		2021
Balance at January 1	$	4,868	$	18,255
Charges, net of adjustments	696		5,830
Cash expenditures	(2,082)		(14,388)
Other non-cash adjustments, including currency	(310)		(461)
Balance at June 30	$	3,172	$	9,236

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Basis of Presentation and Accounting Policies (Policies)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying condensed consolidated balance sheet as of June 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 six months ended June 30, 2022 and 2021 and condensed consolidated statements of cash flows for the six months ended June 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 June 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").

Accounting developments

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.

Fair Value

Fair ValueFair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied. Assets and liabilities recorded at fair value in our condensed consolidated balance sheets are categorized by hierarchical levels based upon the level of judgment associated with the inputs used to measure their fair values. Recurring fair value measurements are limited to investments in derivative instruments. The fair value measurements of our derivative instruments are determined using models that maximize the use of the observable market inputs including interest rate curves and both forward and spot prices for currencies, and are classified as Level II under the fair value hierarchy. The fair values of our derivatives are included in Note 5.

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Basis of Presentation and Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2022

Accounting Policies [Abstract]

Restructuring and Related Costs

The following table presents the above impacts of the Russia pre-tax charge:

	Six Months Ended June 30, 2022
(Amounts in thousands)	Flowserve Pump Division		Flow Control Division		Consolidated Total
Sales	$	(5,429)	$	(2)	$	(5,431)
Cost of sales	3,510		1,112		4,622
Gross loss	(8,939)		(1,114)		(10,053)
Selling, general and administrative expense	9,111		1,082		10,193
Operating loss	$	(18,050)	$	(2,196)	$	(20,246)

The following is a summary of total charges, net of adjustments, incurred related to our Realignment Program:

	Three Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	604	$	76	$	680	$	—	$	680
SG&A	—		—		—		—		—
	$	604	$	76	$	680	$	—	$	680
Non-Restructuring Charges
COS	$	(225)	$	12	$	(213)	$	—	$	(213)
SG&A	2		33		35		27		62
	$	(223)	$	45	$	(178)	$	27	$	(151)
Total Realignment Charges
COS	$	379	$	88	$	467	$	—	$	467
SG&A	2		33		35		27		62
Total	$	381	$	121	$	502	$	27	$	529

	Three Months Ended June 30, 2021
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	2,016	$	171	$	2,187	$	—	$	2,187
SG&A	667		—		667		—		667
	$	2,683	$	171	$	2,854	$	—	$	2,854
Non-Restructuring Charges
COS	$	1,558	$	80	$	1,638	$	—	$	1,638
SG&A	338		(129)		209		915		1,124
	$	1,896	$	(49)	$	1,847	$	915	$	2,762
Total Realignment Charges
COS	$	3,574	$	251	$	3,825	$	—	$	3,825
SG&A	1,005		(129)		876		915		1,791
Total	$	4,579	$	122	$	4,701	$	915	$	5,616

	Six Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	885	$	71	$	956	$	—	$	956
SG&A	—		—		—		—		—
	$	885	$	71	$	956	$	—	$	956
Non-Restructuring Charges
COS	$	(589)	$	(37)	$	(626)	$	(61)	$	(687)
SG&A	77		50		127		(266)		(139)
	$	(512)	$	13	$	(499)	$	(327)	$	(826)
Total Realignment Charges
COS	$	296	$	34	$	330	$	(61)	$	269
SG&A	77		50		127		(266)		(139)
Total	$	373	$	84	$	457	$	(327)	$	130

	Six Months Ended June 30, 2021
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	6,043	$	470	$	6,513	$	—	$	6,513
SG&A	667		(9)		658		—		658
	$	6,710	$	461	$	7,171	$	—	$	7,171
Non-Restructuring Charges
COS	$	5,449	$	678	$	6,127	$	590	$	6,717
SG&A	495		739		1,234		4,195		5,429
	$	5,944	$	1,417	$	7,361	$	4,785	$	12,146
Total Realignment Charges
COS	$	11,492	$	1,148	$	12,640	$	590	$	13,230
SG&A	1,162		730		1,892		4,195		6,087
Total	$	12,654	$	1,878	$	14,532	$	4,785	$	19,317

The following is a summary of total inception to date charges, net of adjustments, related to the Realignment Program:

	Inception to Date
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	26,761	$	2,107	$	28,868	$	—	$	28,868
SG&A	716		333		1,049		(17)		1,032
	$	27,477	$	2,440	$	29,917	$	(17)	$	29,900
Non-Restructuring Charges
COS	$	24,818	$	686	$	25,504	$	581	$	26,085
SG&A	11,126		5,312		16,438		21,529		37,967
	$	35,944	$	5,998	$	41,942	$	22,110	$	64,052
Total Realignment Charges
COS	$	51,579	$	2,793	$	54,372	$	581	$	54,953
SG&A	11,842		5,645		17,487		21,512		38,999
Total	$	63,421	$	8,438	$	71,859	$	22,093	$	93,952

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Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2022

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following tables present our customer revenues disaggregated by revenue source:

	Three Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Total
Original Equipment	$	212,760	$	198,597	$	411,357
Aftermarket	401,665		69,200		470,865
	$	614,425	$	267,797	$	882,222
	Three Months Ended June 30, 2021
	FPD		FCD		Total
Original Equipment	$	220,387	$	214,097	$	434,484
Aftermarket	397,047		66,647		463,694
	$	617,434	$	280,744	$	898,178

	Six Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Total
Original Equipment	$	413,100	$	381,439	$	794,539
Aftermarket	775,312		133,429		908,741
	$	1,188,412	$	514,868	$	1,703,280
	Six Months Ended June 30, 2021
	FPD		FCD		Total
Original Equipment	$	434,541	$	406,817	$	841,358
Aftermarket	785,059		129,069		914,128
	$	1,219,600	$	535,886	$	1,755,486

Our customer sales are diversified geographically. The following tables present our revenues disaggregated by geography, based on the shipping addresses of our customers:

	Three Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Total
North America(1)	$	265,657	$	119,791	$	385,448
Latin America(2)	48,294		4,955		53,249
Middle East and Africa	84,935		22,049		106,984
Asia Pacific	97,557		72,418		169,975
Europe	117,982		48,584		166,566
	$	614,425	$	267,797	$	882,222
	Three Months Ended June 30, 2021
	FPD		FCD		Total
North America(1)	$	243,611	$	98,118	$	341,729
Latin America(2)	52,219		8,879		61,098
Middle East and Africa	69,662		26,530		96,192
Asia Pacific	119,375		88,944		208,319
Europe	132,567		58,273		190,840
	$	617,434	$	280,744	$	898,178

	Six Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Total
North America(1)	$	504,368	$	227,429	$	731,797
Latin America(2)	95,914		10,504		106,418
Middle East and Africa	156,636		43,398		200,034
Asia Pacific	199,156		140,209		339,365
Europe	232,338		93,328		325,666
	$	1,188,412	$	514,868	$	1,703,280
	Six Months Ended June 30, 2021
	FPD		FCD		Total
North America(1)	$	467,582	$	188,368	$	655,950
Latin America(2)	94,256		15,694		109,950
Middle East and Africa	152,207		54,226		206,433
Asia Pacific	244,027		167,600		411,627
Europe	261,528		109,998		371,526
	$	1,219,600	$	535,886	$	1,755,486

__________________________________

(1) North America represents the United States and Canada.

(2) Latin America includes Mexico.

Contract liabilities

The following tables present beginning and ending balances of contract assets and contract liabilities, current and long-term, for the six months ended June 30, 2022 and 2021:

(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, 2022	$	195,598	$	426	$	202,965	$	464
Revenue recognized that was included in contract liabilities at the beginning of the period	—		—		(118,177)		—
Revenue recognized in the period in excess of billings	256,608		1,659		—		—
Billings arising during the period in excess of revenue recognized	—		—		122,502		—
Amounts transferred from contract assets to receivables	(246,405)		(380)		230		—
Currency effects and other, net	(8,673)		(1,671)		(2,345)		(19)
Ending balance, June 30, 2022	$	197,128	$	34	$	205,175	$	445

(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	—		—		(112,835)		—
Revenue recognized in the period in excess of billings	321,040		54		—		—
Billings arising during the period in excess of revenue recognized	—		—		126,591		—
Amounts transferred from contract assets to receivables	(326,634)		(28)		—		—
Currency effects and other, net	(9,909)		(86)		1,109		(19)
Ending balance, June 30, 2021	$	262,231	$	1,079	$	209,092	$	803

_____________________________________

(1) Included in other assets, net.

(2) Included in retirement obligations and other liabilities.

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Allowance for Expected Credit Losses (Tables)

6 Months Ended

Jun. 30, 2022

Credit Loss [Abstract]

Summary of Changes in Allowance for Expected Credit Losses for Trade Receivables

The following table presents the changes in the allowance for expected credit losses for our trade receivables and contract assets for the six months ended June 30, 2022 and 2021:

(Amounts in thousands)	Trade receivables		Contract assets
Beginning balance, January 1, 2022	$	74,336	$	2,393
Charges to cost and expenses, net of recoveries	6,763		1,338
Write-offs	(600)		—
Currency effects and other, net	(1,723)		(27)
Ending balance, June 30, 2022	$	78,776	$	3,704
Beginning balance, January 1, 2021	$	75,176	$	3,205
Charges to cost and expenses, net of recoveries	865		—
Write-offs	(2,015)		—
Currency effects and other, net	756		(167)
Ending balance, June 30, 2021	$	74,782	$	3,038

Summary of Changes in Allowance for Expected Credit Losses for Contract Assets

The following table presents the changes in the allowance for expected credit losses for our trade receivables and contract assets for the six months ended June 30, 2022 and 2021:

(Amounts in thousands)	Trade receivables		Contract assets
Beginning balance, January 1, 2022	$	74,336	$	2,393
Charges to cost and expenses, net of recoveries	6,763		1,338
Write-offs	(600)		—
Currency effects and other, net	(1,723)		(27)
Ending balance, June 30, 2022	$	78,776	$	3,704
Beginning balance, January 1, 2021	$	75,176	$	3,205
Charges to cost and expenses, net of recoveries	865		—
Write-offs	(2,015)		—
Currency effects and other, net	756		(167)
Ending balance, June 30, 2021	$	74,782	$	3,038

Summary of Changes in Allowance for Expected Credit Losses for Long-term Receivables

The following table presents the changes in the allowance for long-term receivables for the six months ended June 30, 2022 and 2021:

(Amounts in thousands)	2022		2021
Balance at January 1	$	67,696	$	67,842
Currency effects and other, net	272		(72)
Balance at June 30	$	67,968	$	67,770

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Stock-Based Compensation Plans (Tables)

6 Months Ended

Jun. 30, 2022

Share-based Payment Arrangement [Abstract]

Information Regarding Restricted Shares

The following table summarizes information regarding Restricted Shares:

	Six Months Ended June 30, 2022
	Shares	Weighted Average Grant-Date Fair Value
Number of unvested shares:
Outstanding as of January 1, 2022	1,671,011	$	43.06
Granted	967,278	32.93
Vested	(523,055)	43.03
Forfeited	(214,147)	45.72
Outstanding as of June 30, 2022	1,901,087	$	37.62

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Derivative Instruments and Hedges (Tables)

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Fair Value of Forward Exchange Contracts not Designated as Hedging Instruments

The fair values of foreign exchange forward contracts are summarized below:

	June 30,		December 31,
(Amounts in thousands)	2022		2021
Current derivative assets	$	831	$	740
Noncurrent derivative assets	—		2
Current derivative liabilities	5,050		2,924
Noncurrent derivative liabilities	112		82

Impact of Net Changes in Fair Values of Forward Exchange Contracts Not Designated as Hedging Instruments

The impact of net changes in the fair values of foreign exchange forward contracts are summarized below:

	Three Months Ended June 30,				Six Months Ended June 30,
(Amounts in thousands)	2022		2021		2022		2021
Gains (losses) recognized in income	$	2,592	$	(4,312)	$	233	$	1,793

The cumulative net investment hedge (gains) losses, net of deferred taxes, under cross-currency swaps recorded in AOCL on our condensed consolidated balance sheet are summarized below:

	Three Months Ended June 30,				Six Months Ended June 30,
(Amounts in thousands)	2022		2021		2022		2021
(Gain) loss-included component (1)	$	(18,870)	$	1,798	$	(44,256)	$	185
(Gain) loss-excluded component (2)	(7,634)		(11,749)		(8,508)		3,890
(Gain) loss recognized in AOCL	$	(26,504)	$	(9,951)	$	(52,764)	$	4,075

_____________________________________________

(1) Change in the fair value of the swaps attributable to changes in spot rates.

(2) Change in the fair value of the swaps due to changes other than those attributable to spot rates.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The fair values of our cross-currency swaps are summarized below:

	June 30,		December 31,
(Amounts in thousands)	2022		2021
Other assets, net	$	68,990	$	23,129

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)

Prior to the dedesignation, the cumulative impact recorded in AOCL on our condensed consolidated balance sheet from the change in carrying value due to the remeasurement of the effective portion of the net investment hedge is summarized below:

	Three Months Ended June 30,				Six Months Ended June 30,
(Amounts in thousands)	2022		2021		2022		2021
Loss recognized in AOCL	$	—	$	—	$	—	$	29,554

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Debt (Tables)

6 Months Ended

Jun. 30, 2022

Debt Disclosure [Abstract]

Debt Including Capital Lease Obligations

Debt, including finance lease obligations, net of discounts and debt issuance costs, consisted of:

	June 30,		December 31,
(Amounts in thousands, except percentages)	2022		2021
3.50% USD Senior Notes due October 1, 2030, net of unamortized discount and debt issuance costs of $5,335 and $5,611, respectively	$	494,665	$	494,389
2.80% USD Senior Notes due January 15, 2032, net of unamortized discount and debt issuance costs of $6,003 and $6,273, respectively	493,997		493,727
Term Loan Facility, interest rate of 3.50% at June 30, 2022 and 1.45% at December 31, 2021, net of debt issuance costs of $540 and $639, respectively	276,960		291,861
Finance lease obligations and other borrowings	22,320		22,851
Debt and finance lease obligations	1,287,942		1,302,828
Less amounts due within one year	46,306		41,058
Total debt due after one year	$	1,241,636	$	1,261,770

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Inventories (Tables)

6 Months Ended

Jun. 30, 2022

Inventory Disclosure [Abstract]

Net Components of Inventory

Inventories, net consisted of the following:

	June 30,		December 31,
(Amounts in thousands)	2022		2021
Raw materials	$	348,402	$	318,348
Work in process	273,677		242,143
Finished goods	223,211		213,096
Less: Excess and obsolete reserve	(96,370)		(95,300)
Inventories, net	$	748,920	$	678,287

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Earnings (Loss) Per Share (Tables)

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

Calculation of Net Earnings Per Common Share and Weighted Average Common Share Outstanding

The following is a reconciliation of net earnings of Flowserve Corporation and weighted average shares for calculating net earnings per common share. Earnings per weighted average common share outstanding was calculated as follows:

	Three Months Ended June 30,
(Amounts in thousands, except per share data)	2022		2021
Net earnings of Flowserve Corporation	$	44,777	$	45,354
Dividends on restricted shares not expected to vest	—		—
Earnings attributable to common and participating shareholders	$	44,777	$	45,354
Weighted average shares:
Common stock	130,626		130,279
Participating securities	40		26
Denominator for basic earnings per common share	130,666		130,305
Effect of potentially dilutive securities	579		499
Denominator for diluted earnings per common share	131,245		130,804
Earnings per common share:
Basic	$	0.34	$	0.35
Diluted	0.34		0.35

	Six Months Ended June 30,
(Amounts in thousands, except per share data)	2022		2021
Net earnings of Flowserve Corporation	$	28,960	$	59,434
Dividends on restricted shares not expected to vest	—		—
Earnings attributable to common and participating shareholders	$	28,960	$	59,434
Weighted average shares:
Common stock	130,518		130,342
Participating securities	36		24
Denominator for basic earnings per common share	130,554		130,366
Effect of potentially dilutive securities	594		539
Denominator for diluted earnings per common share	131,148		130,905
Earnings per common share:
Basic	$	0.22	$	0.46
Diluted	0.22		0.45

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Legal Matters and Contingencies (Tables)

6 Months Ended

Jun. 30, 2022

Commitments and Contingencies Disclosure [Abstract]

Schedule of Loss Contingencies by Contingency

Activity related to asbestos claims during the periods indicated was as follows:

	Three Months Ended June 30,		Six Months Ended June 30,
	2022	2021	2022	2021
Beginning claims(1)	8,800	8,445	8,712	8,366
New claims	622	603	1,295	1,232
Resolved claims	(505)	(479)	(1,090)	(1,023)
Other(2)	—	(10)	—	(16)
Ending claims(1)	8,917	8,559	8,917	8,559

____________________

(1) Beginning and ending claims data in each period excludes inactive claims, as the Company considers it unlikely that inactive cases will be pursued further by the respective plaintiffs. A claim is classified as inactive either due to inactivity over a period of time or if designated as inactive by the applicable court.

(2) Represents the net change in claims as a result of the reclassification of active cases as inactive and inactive cases as active during the period indicated. Cases moved from active to inactive status are removed from the claims count without being accounted for as a "Resolved claim", and cases moved from inactive status to active status are added back to the claims count without being accounted for as a “New claim”.

Reconciliation Of Liability For Asbestos And Environmental Claims

The following table presents the changes in the estimated asbestos liability:

(Amounts in thousands)	2022		2021
Beginning balance, January 1,	$	94,423	$	99,530
Asbestos liability adjustments, net	—		1,000
Cash payment activity	(2,460)		(3,761)
Other, net	(1,819)		(1,284)
Ending balance, June 30,	$	90,144	$	95,485

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Pension and Postretirement Benefits (Tables)

6 Months Ended

Jun. 30, 2022

Retirement Benefits [Abstract]

Components of Net Periodic Cost for Pension and Postretirement Benefits

Components of the net periodic cost for pension and postretirement benefits for the three months ended June 30, 2022 and 2021 were as follows:

	U.S. Defined Benefit Plans				Non-U.S. Defined Benefit Plans				Postretirement Medical Benefits
(Amounts in millions)	2022		2021		2022		2021		2022		2021
Service cost	$	6.1	$	5.8	$	1.4	$	1.9	$	—	$	—
Interest cost	3.2		2.9		1.6		1.4		0.1		0.1
Expected return on plan assets	(6.2)		(6.2)		(1.3)		(1.7)		—		—
Amortization of unrecognized prior service cost and other costs	—		0.1		0.2		0.1		—		0.1
Amortization of unrecognized net loss	0.7		2.0		0.7		1.2		0.1		—
Net periodic cost recognized	$	3.8	$	4.6	$	2.6	$	2.9	$	0.2	$	0.2

Components of the net periodic cost for pension and postretirement benefits for the six months ended June 30, 2022 and 2021 were as follows:

	U.S. Defined Benefit Plans				Non-U.S. Defined Benefit Plans				Postretirement Medical Benefits
(Amounts in millions)	2022		2021		2022		2021		2022		2021
Service cost	$	12.4	$	12.6	$	3.0	$	3.7	$	—	$	—
Interest cost	6.6		6.0		3.3		2.8		0.2		0.2
Expected return on plan assets	(12.7)		(12.7)		(2.9)		(3.2)		—		—
Amortization of unrecognized prior service cost and other costs	0.1		0.1		0.3		0.2		0.1		0.1
Amortization of unrecognized net loss	1.7		3.9		1.4		2.3		0.1		—
Net periodic cost recognized	$	8.1	$	9.9	$	5.1	$	5.8	$	0.4	$	0.3

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Statement of Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Summary of Dividends Declared

Dividends declared per share were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Dividends declared per share	$	0.20	$	0.20	$	0.40	$	0.40

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Summarized Financial Information of Reportable Segments

The following is a summary of the financial information of the reportable segments reconciled to the amounts reported in the condensed consolidated financial statements:

	Three Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		Eliminations and All Other		Consolidated Total
Sales to external customers	$	614,425	$	267,797	$	882,222	$	—	$	882,222
Intersegment sales	445		609		1,054		(1,054)		—
Segment operating income	57,346		30,369		87,715		(27,383)		60,332
	Three Months Ended June 30, 2021
	FPD		FCD		Subtotal–Reportable Segments		Eliminations and All Other		Consolidated Total
Sales to external customers	$	617,434	$	280,744	$	898,178	$	—	$	898,178
Intersegment sales	257		416		673		(673)		—
Segment operating income	67,845		37,229		105,074		(32,912)		72,162

	Six Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments			Eliminations and All Other		Consolidated Total
Sales to external customers	$	1,188,412	$	514,868	$	1,703,280	0	$	—	$	1,703,280
Intersegment sales	2,043		1,393		3,436			(3,436)		—
Segment operating income	78,347		45,606		123,953			(56,253)		67,700
	Six Months Ended June 30, 2021
	FPD		FCD		Subtotal–Reportable Segments			Eliminations and All Other		Consolidated Total
Sales to external customers	$	1,219,600	$	535,886	$	1,755,486	0	$	—	$	1,755,486
Intersegment sales	733		1,096		1,829			(1,829)		—
Segment operating income	121,627		61,942		183,569			(55,304)		128,265

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Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table presents the changes in AOCL, net of tax for the three months ended June 30, 2022 and 2021:

	2022								2021
(Amounts in thousands)	Foreign currency translation items(1)		Pension and other post-retirement effects		Cash flow hedging activity (2)		Total		Foreign currency translation items(1)		Pension and other post-retirement effects		Cash flow hedging activity (2)		Total
Balance - April 1	$	(472,769)	$	(98,078)	$	(1,307)	$	(572,154)	$	(467,326)	$	(142,464)	$	(286)	$	(610,076)
Other comprehensive income (loss) before reclassifications (3)	(64,160)		5,415		—		(58,745)		13,998		(713)		—		13,285
Amounts reclassified from AOCL	—		1,155		29		1,184		—		2,772		15		2,787
Net current-period other comprehensive income (loss) (3)	(64,160)		6,570		29		(57,561)		13,998		2,059		15		16,072
Balance - June 30	$	(536,929)	$	(91,508)	$	(1,278)	$	(629,715)	$	(453,328)	$	(140,405)	$	(271)	$	(594,004)

________________________________

(1) Includes foreign currency translation adjustments attributable to noncontrolling interests of $5.9 million and $6.1 million at April 1, 2022 and 2021, respectively, and $5.9 million and $6.1 million at June 30, 2022 and 2021, respectively. Also includes the impacts from the changes in fair value of our cross-currency swaps, which were $26.5 million and $10.0 million for the three months ended June 30, 2022 and 2021, respectively.

(2) Other comprehensive loss before reclassifications and amounts reclassified from AOCL to interest expense related to designated cash flow hedges.

(3) Amounts in parentheses indicate an increase to AOCL.

Reclassifications out of Accumulated Other Comprehensive Income (Loss)

The following table presents the reclassifications out of AOCL:

		Three Months Ended June 30,
(Amounts in thousands)	Affected line item in the statement of income	2022(1)		2021(1)
Pension and other postretirement effects
Amortization of actuarial losses(2)	Other income (expense), net	$	(1,468)	$	(3,089)
Prior service costs(2)	Other income (expense), net	(144)		(155)
	Tax benefit	457		472
	Net of tax	$	(1,155)	$	(2,772)
Cash flow hedging activity
Amortization of Treasury rate lock	Interest expense	$	(38)	$	(20)
	Tax benefit	9		5
	Net of tax	$	(29)	$	(15)

__________________________________

(1) Amounts in parentheses indicate decreases to income. None of the reclassified amounts have a noncontrolling interest component.

(2) These AOCL components are included in the computation of net periodic pension cost. See Note 11 for additional details.

The following table presents the changes in AOCL, net of tax for the six months ended June 30, 2022 and 2021:

	2022								2021
(Amounts in thousands)	Foreign currency translation items(1)		Pension and other post-retirement effects		Cash flow hedging activity (2)		Total		Foreign currency translation items(1)		Pension and other post-retirement effects		Cash flow hedging activity (2)		Total
Balance - January 1	$	(456,025)	$	(101,665)	$	(1,336)	$	(559,026)	$	(456,437)	$	(146,723)	$	(488)	$	(603,648)
Other comprehensive income (loss) before reclassifications (3)	(80,904)		7,373		—		(73,531)		3,109		804		—		3,913
Amounts reclassified from AOCL	—		2,784		58		2,842		—		5,514		217		5,731
Net current-period other comprehensive income (loss) (3)	(80,904)		10,157		58		(70,689)		3,109		6,318		217		9,644
Balance - June 30	$	(536,929)	$	(91,508)	$	(1,278)	$	(629,715)	$	(453,328)	$	(140,405)	$	(271)	$	(594,004)

________________________________

(1) Includes foreign currency translation adjustments attributable to noncontrolling interests of $4.6 million and $5.9 million at January 1, 2022 and 2021, respectively, and $5.9 million and $6.1 million at June 30, 2022 and 2021, respectively. Also includes the impacts from the changes in fair value of our cross-currency swaps, which were $35.1 million and $9.8 million for the six months ended June 30, 2022 and 2021, respectively.

(2) Other comprehensive loss before reclassifications and amounts reclassified from AOCL to interest expense related to designated cash flow hedges.

(3) Amounts in parentheses indicate an increase to AOCL.

The following table presents the reclassifications out of AOCL:

		Six Months Ended June 30,
(Amounts in thousands)	Affected line item in the statement of income	2022(1)		2021(1)
Pension and other postretirement effects
Amortization of actuarial losses(2)	Other income (expense), net	$	(3,200)	$	(6,148)
Prior service costs(2)	Other income (expense), net	(295)		(308)
	Tax benefit	711		942
	Net of tax	$	(2,784)	$	(5,514)
Cash flow hedging activity
Amortization of Treasury rate lock	Interest expense	$	(76)	$	(284)
	Tax benefit	18		67
	Net of tax	$	(58)	$	(217)

__________________________________

(1) Amounts in parentheses indicate decreases to income. None of the reclassified amounts have a noncontrolling interest component.

(2) These AOCL components are included in the computation of net periodic pension cost. See Note 11 for additional details.

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Realignment Programs (Tables)

6 Months Ended

Jun. 30, 2022

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

The following table presents the above impacts of the Russia pre-tax charge:

	Six Months Ended June 30, 2022
(Amounts in thousands)	Flowserve Pump Division		Flow Control Division		Consolidated Total
Sales	$	(5,429)	$	(2)	$	(5,431)
Cost of sales	3,510		1,112		4,622
Gross loss	(8,939)		(1,114)		(10,053)
Selling, general and administrative expense	9,111		1,082		10,193
Operating loss	$	(18,050)	$	(2,196)	$	(20,246)

The following is a summary of total charges, net of adjustments, incurred related to our Realignment Program:

	Three Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	604	$	76	$	680	$	—	$	680
SG&A	—		—		—		—		—
	$	604	$	76	$	680	$	—	$	680
Non-Restructuring Charges
COS	$	(225)	$	12	$	(213)	$	—	$	(213)
SG&A	2		33		35		27		62
	$	(223)	$	45	$	(178)	$	27	$	(151)
Total Realignment Charges
COS	$	379	$	88	$	467	$	—	$	467
SG&A	2		33		35		27		62
Total	$	381	$	121	$	502	$	27	$	529

	Three Months Ended June 30, 2021
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	2,016	$	171	$	2,187	$	—	$	2,187
SG&A	667		—		667		—		667
	$	2,683	$	171	$	2,854	$	—	$	2,854
Non-Restructuring Charges
COS	$	1,558	$	80	$	1,638	$	—	$	1,638
SG&A	338		(129)		209		915		1,124
	$	1,896	$	(49)	$	1,847	$	915	$	2,762
Total Realignment Charges
COS	$	3,574	$	251	$	3,825	$	—	$	3,825
SG&A	1,005		(129)		876		915		1,791
Total	$	4,579	$	122	$	4,701	$	915	$	5,616

	Six Months Ended June 30, 2022
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	885	$	71	$	956	$	—	$	956
SG&A	—		—		—		—		—
	$	885	$	71	$	956	$	—	$	956
Non-Restructuring Charges
COS	$	(589)	$	(37)	$	(626)	$	(61)	$	(687)
SG&A	77		50		127		(266)		(139)
	$	(512)	$	13	$	(499)	$	(327)	$	(826)
Total Realignment Charges
COS	$	296	$	34	$	330	$	(61)	$	269
SG&A	77		50		127		(266)		(139)
Total	$	373	$	84	$	457	$	(327)	$	130

	Six Months Ended June 30, 2021
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	6,043	$	470	$	6,513	$	—	$	6,513
SG&A	667		(9)		658		—		658
	$	6,710	$	461	$	7,171	$	—	$	7,171
Non-Restructuring Charges
COS	$	5,449	$	678	$	6,127	$	590	$	6,717
SG&A	495		739		1,234		4,195		5,429
	$	5,944	$	1,417	$	7,361	$	4,785	$	12,146
Total Realignment Charges
COS	$	11,492	$	1,148	$	12,640	$	590	$	13,230
SG&A	1,162		730		1,892		4,195		6,087
Total	$	12,654	$	1,878	$	14,532	$	4,785	$	19,317

The following is a summary of total inception to date charges, net of adjustments, related to the Realignment Program:

	Inception to Date
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	26,761	$	2,107	$	28,868	$	—	$	28,868
SG&A	716		333		1,049		(17)		1,032
	$	27,477	$	2,440	$	29,917	$	(17)	$	29,900
Non-Restructuring Charges
COS	$	24,818	$	686	$	25,504	$	581	$	26,085
SG&A	11,126		5,312		16,438		21,529		37,967
	$	35,944	$	5,998	$	41,942	$	22,110	$	64,052
Total Realignment Charges
COS	$	51,579	$	2,793	$	54,372	$	581	$	54,953
SG&A	11,842		5,645		17,487		21,512		38,999
Total	$	63,421	$	8,438	$	71,859	$	22,093	$	93,952

Schedule of Restructuring Reserve by Type of Cost

The following is a summary of restructuring charges, net of adjustments, for our restructuring activities related to our Realignment Program:

	Three Months Ended June 30, 2022
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs		Other		Total
COS	$	570	$	—	$	19	$	91	$	680
SG&A	—		—		—		—		—
Total	$	570	$	—	$	19	$	91	$	680

	Three Months Ended June 30, 2021
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs		Other		Total
COS	$	(154)	$	—	$	(849)	$	3,190	$	2,187
SG&A	168		—		—		499		667
Total	$	14	$	—	$	(849)	$	3,689	$	2,854

	Six Months Ended June 30, 2022
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs		Other		Total
COS	$	568	$	—	$	259	$	129	$	956
SG&A	—		—		—		—		—
Total	$	568	$	—	$	259	$	129	$	956

	Six Months Ended June 30, 2021
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs		Other		Total
COS	$	1,219	$	—	$	1,341	$	3,953	$	6,513
SG&A	168		—		—		490		658
Total	$	1,387	$	—	$	1,341	$	4,443	$	7,171

The following is a summary of total inception to date restructuring charges, net of adjustments, related to our Realignment Program:

	Inception to Date
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs		Other		Total
COS	$	16,772	$	86	$	4,354	$	7,656	$	28,868
SG&A	251		—		14		767		1,032
Total	$	17,023	$	86	$	4,368	$	8,423	$	29,900

The following represents the activity, primarily severance charges from reductions in force, related to the restructuring reserves for the six months ended June 30, 2022 and 2021:

(Amounts in thousands)	2022		2021
Balance at January 1	$	4,868	$	18,255
Charges, net of adjustments	696		5,830
Cash expenditures	(2,082)		(14,388)
Other non-cash adjustments, including currency	(310)		(461)
Balance at June 30	$	3,172	$	9,236

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Basis of Presentation and Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended		12 Months Ended
	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	Dec. 31, 2020
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Sales	$ 882,222		$ 898,178	$ 1,703,280	$ 1,755,486
Cash and cash equivalents	458,345		630,397	458,345	630,397	$ 658,452	$ 1,095,274
Accounts receivable, net	735,895			735,895		739,210
Sales
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reserve for estimated exit costs, before tax				(5,431)
Cost of sales
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reserve for estimated exit costs, before tax				4,622
Gross loss
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reserve for estimated exit costs, before tax				(10,053)
Selling, general and administrative expense
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reserve for estimated exit costs, before tax				10,193
Operating loss
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reserve for estimated exit costs, before tax				(20,246)
Operating Segments
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Sales	882,222		898,178	1,703,280	1,755,486
FPD
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Sales	614,425		617,434	1,188,412	1,219,600
FPD | Operating Segments
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Sales	$ 614,425		$ 617,434	1,188,412	$ 1,219,600
FPD | Operating Segments | Sales
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reserve for estimated exit costs, before tax				(5,429)
FPD | Operating Segments | Cost of sales
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reserve for estimated exit costs, before tax				3,510
FPD | Operating Segments | Gross loss
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reserve for estimated exit costs, before tax				(8,939)
FPD | Operating Segments | Selling, general and administrative expense
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reserve for estimated exit costs, before tax				9,111
FPD | Operating Segments | Operating loss
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reserve for estimated exit costs, before tax				(18,050)
FCD | Operating Segments | Sales
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reserve for estimated exit costs, before tax				(2)
FCD | Operating Segments | Cost of sales
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reserve for estimated exit costs, before tax				1,112
FCD | Operating Segments | Gross loss
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reserve for estimated exit costs, before tax				(1,114)
FCD | Operating Segments | Selling, general and administrative expense
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reserve for estimated exit costs, before tax				1,082
FCD | Operating Segments | Operating loss
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reserve for estimated exit costs, before tax				$ (2,196)
Subsidiaries | Russian Subsidiary
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Sales						14,000
Net assets		$ 2,700
Cash and cash equivalents		7,100
Accounts receivable, net		3,600
Intercompany payable		9,300
Reserve for estimated exit costs, before tax		20,200
Reserve for estimated exit costs, after tax		$ 21,000
Subsidiaries | Certain Foreign Subsidiaries
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Sales						$ 36,000

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Basis of Presentation and Accounting Policies - Pre-Tax Charge Impacts (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2022 USD ($)
Sales
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Asset write-off, excluding cash, pre-tax	$ 5,431
Cost of sales
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Asset write-off, excluding cash, pre-tax	(4,622)
Gross loss
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Asset write-off, excluding cash, pre-tax	10,053
Selling, general and administrative expense
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Asset write-off, excluding cash, pre-tax	(10,193)
Operating loss
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Asset write-off, excluding cash, pre-tax	20,246
Subtotal–Reportable Segments | Sales | FPD
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Asset write-off, excluding cash, pre-tax	5,429
Subtotal–Reportable Segments | Sales | FCD
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Asset write-off, excluding cash, pre-tax	2
Subtotal–Reportable Segments | Cost of sales | FPD
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Asset write-off, excluding cash, pre-tax	(3,510)
Subtotal–Reportable Segments | Cost of sales | FCD
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Asset write-off, excluding cash, pre-tax	(1,112)
Subtotal–Reportable Segments | Gross loss | FPD
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Asset write-off, excluding cash, pre-tax	8,939
Subtotal–Reportable Segments | Gross loss | FCD
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Asset write-off, excluding cash, pre-tax	1,114
Subtotal–Reportable Segments | Selling, general and administrative expense | FPD
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Asset write-off, excluding cash, pre-tax	(9,111)
Subtotal–Reportable Segments | Selling, general and administrative expense | FCD
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Asset write-off, excluding cash, pre-tax	(1,082)
Subtotal–Reportable Segments | Operating loss | FPD
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Asset write-off, excluding cash, pre-tax	18,050
Subtotal–Reportable Segments | Operating loss | FCD
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Asset write-off, excluding cash, pre-tax	$ 2,196

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Revenue Recognition (Narrative) (Details) - segments	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Number of operating segments			2
Transferred over Time
Disaggregation of Revenue [Line Items]
Revenue from products and services	13.00%	12.00%	15.00%	16.00%
Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Revenue from products and services	87.00%	88.00%	85.00%	84.00%

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Revenue Recognition (Disaggregation of revenue) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Disaggregation of Revenue [Line Items]
Sales	$ 882,222	$ 898,178	$ 1,703,280	$ 1,755,486
Original Equipment
Disaggregation of Revenue [Line Items]
Sales	411,357	434,484	794,539	841,358
Aftermarket
Disaggregation of Revenue [Line Items]
Sales	470,865	463,694	908,741	914,128
FPD
Disaggregation of Revenue [Line Items]
Sales	614,425	617,434	1,188,412	1,219,600
FPD | Original Equipment
Disaggregation of Revenue [Line Items]
Sales	212,760	220,387	413,100	434,541
FPD | Aftermarket
Disaggregation of Revenue [Line Items]
Sales	401,665	397,047	775,312	785,059
FCD
Disaggregation of Revenue [Line Items]
Sales	267,797	280,744	514,868	535,886
FCD | Original Equipment
Disaggregation of Revenue [Line Items]
Sales	198,597	214,097	381,439	406,817
FCD | Aftermarket
Disaggregation of Revenue [Line Items]
Sales	69,200	66,647	133,429	129,069
North America
Disaggregation of Revenue [Line Items]
Sales	385,448	341,729	731,797	655,950
North America | FPD
Disaggregation of Revenue [Line Items]
Sales	265,657	243,611	504,368	467,582
North America | FCD
Disaggregation of Revenue [Line Items]
Sales	119,791	98,118	227,429	188,368
Latin America
Disaggregation of Revenue [Line Items]
Sales	53,249	61,098	106,418	109,950
Latin America | FPD
Disaggregation of Revenue [Line Items]
Sales	48,294	52,219	95,914	94,256
Latin America | FCD
Disaggregation of Revenue [Line Items]
Sales	4,955	8,879	10,504	15,694
Middle East And Africa
Disaggregation of Revenue [Line Items]
Sales	106,984	96,192	200,034	206,433
Middle East And Africa | FPD
Disaggregation of Revenue [Line Items]
Sales	84,935	69,662	156,636	152,207
Middle East And Africa | FCD
Disaggregation of Revenue [Line Items]
Sales	22,049	26,530	43,398	54,226
Asia Pacific
Disaggregation of Revenue [Line Items]
Sales	169,975	208,319	339,365	411,627
Asia Pacific | FPD
Disaggregation of Revenue [Line Items]
Sales	97,557	119,375	199,156	244,027
Asia Pacific | FCD
Disaggregation of Revenue [Line Items]
Sales	72,418	88,944	140,209	167,600
Europe
Disaggregation of Revenue [Line Items]
Sales	166,566	190,840	325,666	371,526
Europe | FPD
Disaggregation of Revenue [Line Items]
Sales	117,982	132,567	232,338	261,528
Europe | FCD
Disaggregation of Revenue [Line Items]
Sales	$ 48,584	$ 58,273	$ 93,328	$ 109,998

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Revenue Recognition (Performance obligations) (Details) $ in Millions	Jun. 30, 2022 USD ($)
Revenue from Contract with Customer [Abstract]
Revenue, remaining performance obligation, amount	$ 562
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01
Revenue from Contract with Customer [Abstract]
Revenue, remaining performance obligation, amount	$ 258
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, period	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01
Revenue from Contract with Customer [Abstract]
Revenue, remaining performance obligation, amount	$ 304
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, remaining performance obligation, period	1 year

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Revenue Recognition (Contract Liabilities) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Change In Contract With Customer, Asset And Liability [Roll Forward]
Contract Assets, Beginning balance	$ 195,598
Contract Liabilities, Current, Beginning balance	202,965
Revenue recognized that was included in contract liabilities at the beginning of the period	(9,642)	$ (17,026)
Amounts transferred from contract assets to receivables	(7,705)	12,232
Contract Assets, Ending balance	197,128	262,231
Contract Liabilities, Current, Ending balance	205,175	209,092
Short-term Contract with Customer
Change In Contract With Customer, Asset And Liability [Roll Forward]
Contract Assets, Beginning balance	195,598	277,734
Revenue recognized that was included in contract liabilities at the beginning of the period	0	0
Revenue recognized in the period in excess of billings	256,608	321,040
Billings arising during the period in excess of revenue recognized	0	0
Amounts transferred from contract assets to receivables	(246,405)	(326,634)
Other contract asset, net	(8,673)	(9,909)
Long-term Contract with Customer
Change In Contract With Customer, Asset And Liability [Roll Forward]
Contract Assets, Beginning balance	426	1,139
Revenue recognized that was included in contract liabilities at the beginning of the period	0	0
Revenue recognized in the period in excess of billings	1,659	54
Billings arising during the period in excess of revenue recognized	0	0
Amounts transferred from contract assets to receivables	(380)	(28)
Other contract asset, net	(1,671)	(86)
Contract Assets, Ending balance	34	1,079
Short-term Contract with Customer, Liability
Change In Contract With Customer, Asset And Liability [Roll Forward]
Contract Liabilities, Current, Beginning balance	202,965	194,227
Revenue recognized that was included in contract liabilities at the beginning of the period	(118,177)	(112,835)
Revenue recognized in the period in excess of billings	0	0
Billings arising during the period in excess of revenue recognized	122,502	126,591
Amounts transferred from contract assets to receivables	230	0
Other contract liability, net	(2,345)	1,109
Long-term Contract With Customer, Liability
Change In Contract With Customer, Asset And Liability [Roll Forward]
Contract Liabilities, Noncurrent, Beginning balance	464	822
Revenue recognized that was included in contract liabilities at the beginning of the period	0	0
Revenue recognized in the period in excess of billings	0	0
Billings arising during the period in excess of revenue recognized	0	0
Amounts transferred from contract assets to receivables	0	0
Other contract liability, net	(19)	(19)
Contract Liabilities, Noncurrent, Ending balance	$ 445	$ 803

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Allowance for Expected Credit Losses (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Credit Loss [Abstract]
Contract assets, allowance for credit loss as a percentage of assets	1.00%
Trade receivables
Beginning balance	$ 74,336	$ 75,176
Charges to cost and expenses, net of recoveries	6,763	865
Currency effects and other, net	(1,723)	756
Ending balance	78,776	74,782
Contract assets
Beginning balance	2,393	3,205
Charges to cost and expenses, net of recoveries	1,338	0
Currency effects and other, net	(27)	(167)
Ending balance	3,704	3,038
Long-term Receivables
Beginning balance	67,696	67,842
Currency effects and other, net	272	(72)
Ending balance	67,968	67,770
Write-offs	(600)	(2,015)
Write-offs	$ 0	$ 0

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Stock-Based Compensation Plans (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021	Jan. 01, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock available under stock option plan (in shares)	9,669,056		9,669,056
Vesting period			3 years
Options, outstanding, number (in shares)	114,943		114,943
Options, grants in period, gross (in shares)			0	0
Plan 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to issue under share based compensation plans (in shares)						12,500,000
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation arrangement age requirement to vest over original vesting period			55 years
Time in service requirement to vest over original vesting period			10 years
Nonvested awards, compensation cost not yet recognized	$ 34.0		$ 34.0		$ 24.2
Nonvested awards, compensation cost not yet recognized, period for recognition			1 year
Equity instruments other than options, vested in period, fair value	1.9	$ 0.9	$ 22.5	$ 24.4
Allocated share-based compensation expense, net of tax	4.6	5.1	13.1	12.7
Allocated share-based compensation expense	$ 5.9	$ 6.7	$ 16.9	$ 16.5
Equity instruments other than options, nonvested, number (in shares)	1,901,087		1,901,087		1,671,011
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Nonvested awards, compensation cost not yet recognized, period for recognition			36 months
Equity instruments other than options, nonvested, number (in shares)	481,000		481,000
Total shareholder return performance measure, as a percentage	15.00%		15.00%
Estimated vesting of shares based on performance shares (in shares)	410,000		410,000
Minimum | Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, vested and expected to vest, exercisable, number (in shares)	0		0
Minimum | Performance Shares | Issue Date 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage			0.00%
Minimum | Performance Shares | Issue Date 2022 And 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage			0.00%
Maximum | Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options, vested and expected to vest, exercisable, number (in shares)	1,059,000		1,059,000
Maximum | Performance Shares | Issue Date 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage			200.00%
Maximum | Performance Shares | Issue Date 2022 And 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting rights, percentage			230.00%

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Stock-Based Compensation Plans (Information Regarding Restricted Shares) (Details) - Restricted Stock	6 Months Ended
	Jun. 30, 2022 $ / shares shares
Shares
Outstanding, Shares, Beginning balance (in shares) | shares	1,671,011
Granted, Shares (in shares) | shares	967,278
Vested, Shares (in shares) | shares	(523,055)
Forfeited, Shares (in shares) | shares	(214,147)
Outstanding, Shares, Ending balance (in shares) | shares	1,901,087
Weighted Average Grant-Date Fair Value
Outstanding, Weighted Average Grant-Date Fair Value, Beginning balance (in dollars per share) | $ / shares	$ 43.06
Granted, Weighted Average Grant-Date Fair Value (in dollars per share) | $ / shares	32.93
Vested, Weighted Average Grant-Date Fair Value (in dollars per share) | $ / shares	43.03
Forfeited, Weighted Average Grant-Date Fair Value (in dollars per share) | $ / shares	45.72
Outstanding, Weighted Average Grant-Date Fair Value, Ending balance (in dollars per share) | $ / shares	$ 37.62

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Derivative Instruments and Hedges (Textual) (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2022 EUR (€)	Dec. 31, 2021 USD ($)	Sep. 22, 2020 EUR (€)	Jun. 30, 2015 EUR (€)
2022 EUR Senior Notes
Derivative [Line Items]
Stated interest rate (as a percent)	1.25%		1.25%		1.25%
2022 EUR Senior Notes
Derivative [Line Items]
Designated amount, net investment hedge | €							€ 336,300,000	€ 255,700,000
Currency Swap
Derivative [Line Items]
Derivative, notional amount | €					€ 423,200,000
Derivative, Interest Payable | $	$ 2.1	$ 1.8	$ 4.2	$ 2.4
Not Designated as Hedging Instrument | Forward Exchange Contract
Derivative [Line Items]
Derivative, notional amount | $	$ 413.9		$ 413.9			$ 425.2
Minimum remaining maturity of foreign currency derivatives			21 days
Maximum remaining maturity of foreign currency derivatives			32 months

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Derivative Instruments and Hedges (Fair Value Balance Sheet Disclosures) (Details) - Not Designated as Hedging Instrument - Foreign Exchange Contract - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Derivative [Line Items]
Current derivative assets	$ 831	$ 740
Noncurrent derivative assets	0	2
Current derivative liabilities	5,050	2,924
Noncurrent derivative liabilities	$ 112	$ 82

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Derivative Instruments and Hedges (Fair Value of Forward Exchange Contracts) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Forward Contracts
Derivative [Line Items]
Gains (losses) recognized in income	$ 2,592	$ (4,312)	$ 233	$ 1,793

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Derivative Instruments and Hedges (Cross Currency Swap) (Details) - Currency Swap - Net Investment Hedging - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Loss (gain) - included component	$ (18,870)	$ 1,798	$ (44,256)	$ 185
(Gain) loss - excluded component	(7,634)	(11,749)	(8,508)	3,890
(Gain) loss recognized in AOCL	(26,504)	$ (9,951)	(52,764)	$ 4,075
Fair Value, Inputs, Level 2
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Noncurrent derivative assets	$ 68,990		$ 68,990		$ 23,129

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Derivative Instruments and Hedges (Remeasurement) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Net Investment Hedging
Derivative [Line Items]
Loss recognized in AOCL	$ 0	$ 0	$ 0	$ 29,554

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Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Debt Instrument [Line Items]
Debt issuance costs, net		$ 6,273
Finance lease obligations and other borrowings	$ 22,320	22,851
Debt and finance lease obligations	1,287,942	1,302,828
Less amounts due within one year	46,306	41,058
Total debt due after one year	$ 1,241,636	1,261,770
2030 USD Senior notes
Debt Instrument [Line Items]
Stated interest rate (as a percent)	3.50%
Debt Instrument, Unamortized Discount	$ 5,335
Debt issuance costs, net		5,611
Long-term debt	$ 494,665	494,389
2032 USD Senior Notes
Debt Instrument [Line Items]
Stated interest rate (as a percent)	0.028%
Debt Instrument, Unamortized Discount	$ 6,003
Long-term debt	$ 493,997	$ 493,727
Term Loan Facility
Debt Instrument [Line Items]
Effective interest rate (as a percent)	3.50%	1.45%
Debt issuance costs, net	$ 540	$ 639
Long-term debt	$ 276,960	$ 291,861

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Debt (Details Textual) - USD ($)					3 Months Ended	6 Months Ended
	Mar. 31, 2023	Dec. 31, 2022	Sep. 13, 2021	Mar. 19, 2021	Jun. 30, 2021	Sep. 30, 2022	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2021
Line of Credit Facility [Line Items]
Loss on extinguishment of debt				$ 7,610,000			$ 0	$ 7,610,000
2022 EUR Senior Notes
Line of Credit Facility [Line Items]
Repayment of debt				400,900,000
Loss on extinguishment of debt					$ 7,600,000
Make whole premium				$ 6,600,000
Term Loan Facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity			$ 300,000,000
Term Loan Facility | Forecast
Line of Credit Facility [Line Items]
Periodic payment	$ 10,000,000	$ 10,000,000				$ 7,500,000
Revolving Credit Facility | Senior Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity			800,000,000
Line of credit, commitment fee (as a percentage)							0.175%
Amount drawn							$ 0		$ 0
Line of credit facility, current borrowing capacity							277,100,000		614,200,000
Letter of Credit | Senior Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity			750,000,000
Letters of credit outstanding							$ 66,200,000		$ 78,300,000
Swing Line Loans | Senior Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, maximum borrowing capacity			$ 30,000,000
LIBOR | Revolving Credit Facility | Senior Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate							1.375%
Base Rate | Revolving Credit Facility | Senior Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate							0.375%
Minimum | Revolving Credit Facility | Senior Credit Facility
Line of Credit Facility [Line Items]
Line of credit, commitment fee (as a percentage)			0.08%
Minimum | LIBOR | Term Loan Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate			0.875%
Minimum | LIBOR | Revolving Credit Facility | Senior Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate			1.00%
Minimum | Base Rate | Term Loan Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate			0.00%
Minimum | Base Rate | Revolving Credit Facility | Senior Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate			0.00%
Maximum | Revolving Credit Facility | Senior Credit Facility
Line of Credit Facility [Line Items]
Line of credit, commitment fee (as a percentage)			0.25%
Maximum | LIBOR | Term Loan Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate			1.625%
Maximum | LIBOR | Revolving Credit Facility | Senior Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate			1.75%
Maximum | Base Rate | Term Loan Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate			0.625%
Maximum | Base Rate | Revolving Credit Facility | Senior Credit Facility
Line of Credit Facility [Line Items]
Basis spread on variable rate			0.75%

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Fair Value (Details) $ in Millions	Jun. 30, 2022 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior notes	$ 988.7
Estimate of Fair Value Measurement
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior notes	$ 832.3

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Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2022	Dec. 31, 2021
Net Components of Inventory
Raw materials	$ 348,402	$ 318,348
Work in process	273,677	242,143
Finished goods	223,211	213,096
Less: Excess and obsolete reserve	(96,370)	(95,300)
Inventories, net	$ 748,920	$ 678,287

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Earnings (Loss) Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Earnings Per Share [Abstract]
Net earnings of Flowserve Corporation	$ 44,777	$ 45,354	$ 28,960	$ 59,434
Dividends on restricted shares not expected to vest	0	0	0	0
Earnings attributable to common and participating shareholders	$ 44,777	$ 45,354	$ 28,960	$ 59,434
Weighted average shares:
Common stock (in shares)	130,626,000	130,279,000	130,518,000	130,342,000
Participating securities (in shares)	40,000	26,000	36,000	24,000
Denominator for basic earnings per common share (in shares)	130,666,000	130,305,000	130,554,000	130,366,000
Effect of potentially dilutive securities (in shares)	579,000	499,000	594,000	539,000
Denominator for diluted earnings per common share (in shares)	131,245,000	130,804,000	131,148,000	130,905,000
Earnings per common share:
Basic (in dollars per share)	$ 0.34	$ 0.35	$ 0.22	$ 0.46
Diluted (in dollars per share)	$ 0.34	$ 0.35	$ 0.22	$ 0.45

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Legal Matters and Contingencies (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022 USD ($) claim	Jun. 30, 2021 USD ($) claim	Jun. 30, 2022 USD ($) claim	Jun. 30, 2021 USD ($) claim
Liability for Asbestos and Environmental Claims, Net [Roll Forward]
Beginning claims	8,800	8,445	8,712	8,366
New claims	622	603	1,295	1,232
Resolved claims	(505)	(479)	(1,090)	(1,023)
Other	0	(10)	0	(16)
Ending claims	8,917	8,559	8,917	8,559
Loss contingency expense | $	$ 1.8	$ 1.8	$ 3.6	$ 4.5
Payments For (Proceeds From) Insurance Settlements | $			$ 2.7	$ (7.0)

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Legal Matters and Contingencies - Estimated Asbestos Liability (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021
Liability for Asbestos and Environmental Claims, Net [Roll Forward]
Beginning balance, January 1,	$ 94,423	$ 99,530
Asbestos liability adjustments, net	0	1,000
Cash payment activity	(2,460)	(3,761)
Other, net	(1,819)	(1,284)
Ending balance, June 30,	$ 90,144	$ 95,485

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Pension and Postretirement Benefits (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Domestic Plan
Components of the net periodic cost for retirement and postretirement benefits
Service cost	$ 6.1	$ 5.8	$ 12.4	$ 12.6
Interest cost	3.2	2.9	6.6	6.0
Expected return on plan assets	(6.2)	(6.2)	(12.7)	(12.7)
Amortization of unrecognized prior service cost and other costs	0.0	0.1	0.1	0.1
Amortization of unrecognized net loss	0.7	2.0	1.7	3.9
Net periodic cost recognized	3.8	4.6	8.1	9.9
Foreign Plan
Components of the net periodic cost for retirement and postretirement benefits
Service cost	1.4	1.9	3.0	3.7
Interest cost	1.6	1.4	3.3	2.8
Expected return on plan assets	(1.3)	(1.7)	(2.9)	(3.2)
Amortization of unrecognized prior service cost and other costs	0.2	0.1	0.3	0.2
Amortization of unrecognized net loss	0.7	1.2	1.4	2.3
Net periodic cost recognized	2.6	2.9	5.1	5.8
Postretirement Medical Benefits
Components of the net periodic cost for retirement and postretirement benefits
Service cost	0.0	0.0	0.0	0.0
Interest cost	0.1	0.1	0.2	0.2
Expected return on plan assets	0.0	0.0	0.0	0.0
Amortization of unrecognized prior service cost and other costs	0.0	0.1	0.1	0.1
Amortization of unrecognized net loss	0.1	0.0	0.1	0.0
Net periodic cost recognized	$ 0.2	$ 0.2	$ 0.4	$ 0.3

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Shareholders' Equity (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Dec. 31, 2014
Equity, Class of Treasury Stock [Line Items]
Cash dividends declared per share (in dollars per share)	$ 0.20	$ 0.20	$ 0.40	$ 0.40
Repurchase of shares (in shares)	0	311,000	0	440,000
Treasury Stock, Value, Acquired, Cost Method		$ 12,500,000		$ 17,500,000
Remaining authorized repurchase capacity	$ 96,100,000		$ 96,100,000
Share repurchase program 2014
Equity, Class of Treasury Stock [Line Items]
Authorized amount to be repurchased					$ 500,000,000

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income before income tax	$ 57,713	$ 50,455	$ 47,218	$ 71,408
Income tax expense	$ 11,618	$ 2,711	$ 14,800	$ 6,503
Effective tax rate (as a percent)	20.10%	5.40%	31.40%	9.10%
Unrecognized tax benefits, period decrease			$ 6,300
Unrecognized tax benefits approximate amount of estimated reduction within the next twelve months	$ 14,000		$ 14,000

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Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Summarized financial information of the reportable segments
Sales	$ 882,222	$ 898,178	$ 1,703,280	$ 1,755,486
Segment operating income	60,332	72,162	67,700	128,265
Operating Segments
Summarized financial information of the reportable segments
Sales	882,222	898,178	1,703,280	1,755,486
Intersegment sales	1,054	673	3,436	1,829
Segment operating income	87,715	105,074	123,953	183,569
Intersegment sales
Summarized financial information of the reportable segments
Intersegment sales	(1,054)	(673)	(3,436)	(1,829)
Segment operating income	(27,383)	(32,912)	(56,253)	(55,304)
FPD
Summarized financial information of the reportable segments
Sales	614,425	617,434	1,188,412	1,219,600
FPD | Operating Segments
Summarized financial information of the reportable segments
Sales	614,425	617,434	1,188,412	1,219,600
Intersegment sales	445	257	2,043	733
Segment operating income	57,346	67,845	78,347	121,627
FCD
Summarized financial information of the reportable segments
Sales	267,797	280,744	514,868	535,886
FCD | Operating Segments
Summarized financial information of the reportable segments
Sales	267,797	280,744	514,868	535,886
Intersegment sales	609	416	1,393	1,096
Segment operating income	$ 30,369	$ 37,229	$ 45,606	$ 61,942

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Accumulated Other Comprehensive Income (Loss) (Components of AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ (572,154)	$ (610,076)	$ (559,026)	$ (603,648)
Other comprehensive income (loss) before reclassifications (3)	(58,745)	13,285	(73,531)	3,913
Amounts reclassified from AOCL	1,184	2,787	2,842	5,731
Other comprehensive income (loss)	(57,561)	16,072	(70,689)	9,644
Ending balance	(629,715)	(594,004)	(629,715)	(594,004)
Foreign currency translation, taxes	(7,299)	(6,401)	(20,605)	(5,747)
Foreign currency translation items
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(472,769)	(467,326)	(456,025)	(456,437)
Other comprehensive income (loss) before reclassifications (3)	(64,160)	13,998	(80,904)	3,109
Amounts reclassified from AOCL	0	0	0	0
Other comprehensive income (loss)	(64,160)	13,998	(80,904)	3,109
Ending balance	(536,929)	(453,328)	(536,929)	(453,328)
Pension and other post-retirement effects
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(98,078)	(142,464)	(101,665)	(146,723)
Other comprehensive income (loss) before reclassifications (3)	5,415	(713)	7,373	804
Amounts reclassified from AOCL	1,155	2,772	2,784	5,514
Other comprehensive income (loss)	6,570	2,059	10,157	6,318
Ending balance	(91,508)	(140,405)	(91,508)	(140,405)
Cash flow hedging activity
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(1,307)	(286)	(1,336)	(488)
Other comprehensive income (loss) before reclassifications (3)	0	0	0	0
Amounts reclassified from AOCL	29	15	58	217
Other comprehensive income (loss)	29	15	58	217
Ending balance	(1,278)	(271)	(1,278)	(271)
Non- controlling Interests
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Other comprehensive income (loss)	4	14	1,340	162
Accumulated other comprehensive income (loss), foreign currency translation adjustment, net of tax	5,900	6,100	5,900	6,100	$ 5,900	$ 4,600	$ 6,100	$ 5,900
Non- controlling Interests | Currency Swap
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Foreign currency translation, taxes	$ 26,500	$ 10,000	$ 35,100	$ 9,800

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Accumulated Other Comprehensive Income (Loss) (Reclassifications out of AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net of tax	$ (1,184)	$ (2,787)	$ (2,842)	$ (5,731)
Amortization of actuarial losses
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification	(1,468)	(3,089)	(3,200)	(6,148)
Prior service costs
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification	(144)	(155)	(295)	(308)
Pension and other post-retirement effects
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Tax benefit	457	472	711	942
Net of tax	(1,155)	(2,772)	(2,784)	(5,514)
Cash flow hedging activity
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification	(38)	(20)	(76)	(284)
Tax benefit	9	5	18	67
Net of tax	$ (29)	$ (15)	$ (58)	$ (217)

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Realignment Programs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		24 Months Ended
	Jun. 30, 2022	Jun. 30, 2021	Jun. 30, 2022	Jun. 30, 2021	Mar. 31, 2022
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	$ 680	$ 2,854	$ 956	$ 7,171
Non-Restructuring Charges	(151)	2,762	(826)	12,146
Total Realignment Charges	529
Total Realignment Program Charges		5,616	130	19,317
Restructuring Reserve [Roll Forward]
Beginning Balance			4,868	18,255
Charges, net of adjustments	680	2,854	956	7,171
Cash expenditures			(2,082)	(14,388)
Other non-cash adjustments, including currency			(310)	(461)
Ending Balance	3,172	9,236	3,172	9,236
Subtotal–Reportable Segments
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	680	2,854	956	7,171
Non-Restructuring Charges	(178)	1,847	(499)	7,361
Total Realignment Charges	502
Total Realignment Program Charges		4,701	457	14,532
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	680	2,854	956	7,171
Eliminations and All Other
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0	0	0	0
Non-Restructuring Charges	27	915	(327)	4,785
Total Realignment Charges	27
Total Realignment Program Charges		915	(327)	4,785
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	0	0	0	0
Severance
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	570	14	568	1,387
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	570	14	568	1,387
Contract Termination
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0	0	0	0
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	0	0	0	0
Asset Write-Downs
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	19	(849)	259	1,341
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	19	(849)	259	1,341
Other
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	91	3,689	129	4,443
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	91	3,689	129	4,443
Charges Expected to be Settled in Cash
Restructuring Cost and Reserve [Line Items]
Restructuring Charges			696	5,830
Restructuring Reserve [Roll Forward]
Charges, net of adjustments			696	5,830
Cost of sales
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	680	2,187	956	6,513
Non-Restructuring Charges	(213)	1,638	(687)	6,717
Total Realignment Charges	467
Total Realignment Program Charges		3,825	269	13,230
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	680	2,187	956	6,513
Cost of sales | Subtotal–Reportable Segments
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	680	2,187	956	6,513
Non-Restructuring Charges	(213)	1,638	(626)	6,127
Total Realignment Charges	467
Total Realignment Program Charges		3,825	330	12,640
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	680	2,187	956	6,513
Cost of sales | Eliminations and All Other
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0	0	0	0
Non-Restructuring Charges	0	0	(61)	590
Total Realignment Charges	0
Total Realignment Program Charges		0	(61)	590
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	0	0	0	0
Cost of sales | Severance
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	570	(154)	568	1,219
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	570	(154)	568	1,219
Cost of sales | Contract Termination
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0	0	0	0
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	0	0	0	0
Cost of sales | Asset Write-Downs
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	19	(849)	259	1,341
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	19	(849)	259	1,341
Cost of sales | Other
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	91	3,190	129	3,953
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	91	3,190	129	3,953
Selling, general and administrative expense
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0	667	0	658
Non-Restructuring Charges	62	1,124	(139)	5,429
Total Realignment Charges	62
Total Realignment Program Charges		1,791	(139)	6,087
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	0	667	0	658
Selling, general and administrative expense | Subtotal–Reportable Segments
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0	667	0	658
Non-Restructuring Charges	35	209	127	1,234
Total Realignment Charges	35
Total Realignment Program Charges		876	127	1,892
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	0	667	0	658
Selling, general and administrative expense | Eliminations and All Other
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0	0	0	0
Non-Restructuring Charges	27	915	(266)	4,195
Total Realignment Charges	27
Total Realignment Program Charges		915	(266)	4,195
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	0	0	0	0
Selling, general and administrative expense | Severance
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0	168	0	168
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	0	168	0	168
Selling, general and administrative expense | Contract Termination
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0	0	0	0
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	0	0	0	0
Selling, general and administrative expense | Asset Write-Downs
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0	0	0	0
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	0	0	0	0
Selling, general and administrative expense | Other
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0	499	0	490
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	0	499	0	490
FPD
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	604	2,683	885	6,710
Non-Restructuring Charges	(223)	1,896	(512)	5,944
Total Realignment Charges	381
Total Realignment Program Charges		4,579	373	12,654
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	604	2,683	885	6,710
FPD | Cost of sales
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	604	2,016	885	6,043
Non-Restructuring Charges	(225)	1,558	(589)	5,449
Total Realignment Charges	379
Total Realignment Program Charges		3,574	296	11,492
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	604	2,016	885	6,043
FPD | Selling, general and administrative expense
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0	667	0	667
Non-Restructuring Charges	2	338	77	495
Total Realignment Charges	2
Total Realignment Program Charges		1,005	77	1,162
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	0	667	0	667
FCD
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	76	171	71	461
Non-Restructuring Charges	45	(49)	13	1,417
Total Realignment Charges	121
Total Realignment Program Charges		122	84	1,878
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	76	171	71	461
FCD | Cost of sales
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	76	171	71	470
Non-Restructuring Charges	12	80	(37)	678
Total Realignment Charges	88
Total Realignment Program Charges		251	34	1,148
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	76	171	71	470
FCD | Selling, general and administrative expense
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0	0	0	(9)
Non-Restructuring Charges	33	(129)	50	739
Total Realignment Charges	33
Total Realignment Program Charges		(129)	50	730
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	0	$ 0	0	$ (9)
2020 Realignment Program
Restructuring Cost and Reserve [Line Items]
Expected cost	$ 95,000		$ 95,000
Restructuring Charges					$ 29,900
Non-Restructuring Charges					64,052
Total Realignment Charges					93,952
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					29,900
2020 Realignment Program | Subtotal–Reportable Segments
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					29,917
Non-Restructuring Charges					41,942
Total Realignment Charges					71,859
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					29,917
2020 Realignment Program | Eliminations and All Other
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					(17)
Non-Restructuring Charges					22,110
Total Realignment Charges					22,093
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					(17)
2020 Realignment Program | Severance
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					17,023
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					17,023
2020 Realignment Program | Contract Termination
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					86
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					86
2020 Realignment Program | Asset Write-Downs
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					4,368
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					4,368
2020 Realignment Program | Other
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					8,423
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					8,423
2020 Realignment Program | Cost of sales
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					28,868
Non-Restructuring Charges					26,085
Total Realignment Charges					54,953
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					28,868
2020 Realignment Program | Cost of sales | Subtotal–Reportable Segments
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					28,868
Non-Restructuring Charges					25,504
Total Realignment Charges					54,372
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					28,868
2020 Realignment Program | Cost of sales | Eliminations and All Other
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					0
Non-Restructuring Charges					581
Total Realignment Charges					581
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					0
2020 Realignment Program | Cost of sales | Severance
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					16,772
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					16,772
2020 Realignment Program | Cost of sales | Contract Termination
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					86
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					86
2020 Realignment Program | Cost of sales | Asset Write-Downs
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					4,354
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					4,354
2020 Realignment Program | Cost of sales | Other
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					7,656
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					7,656
2020 Realignment Program | Selling, general and administrative expense
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					1,032
Non-Restructuring Charges					37,967
Total Realignment Charges					38,999
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					1,032
2020 Realignment Program | Selling, general and administrative expense | Subtotal–Reportable Segments
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					1,049
Non-Restructuring Charges					16,438
Total Realignment Charges					17,487
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					1,049
2020 Realignment Program | Selling, general and administrative expense | Eliminations and All Other
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					(17)
Non-Restructuring Charges					21,529
Total Realignment Charges					21,512
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					(17)
2020 Realignment Program | Selling, general and administrative expense | Severance
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					251
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					251
2020 Realignment Program | Selling, general and administrative expense | Contract Termination
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					0
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					0
2020 Realignment Program | Selling, general and administrative expense | Asset Write-Downs
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					14
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					14
2020 Realignment Program | Selling, general and administrative expense | Other
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					767
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					767
2020 Realignment Program | FPD
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					27,477
Non-Restructuring Charges					35,944
Total Realignment Charges					63,421
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					27,477
2020 Realignment Program | FPD | Cost of sales
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					26,761
Non-Restructuring Charges					24,818
Total Realignment Charges					51,579
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					26,761
2020 Realignment Program | FPD | Selling, general and administrative expense
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					716
Non-Restructuring Charges					11,126
Total Realignment Charges					11,842
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					716
2020 Realignment Program | FCD
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					2,440
Non-Restructuring Charges					5,998
Total Realignment Charges					8,438
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					2,440
2020 Realignment Program | FCD | Cost of sales
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					2,107
Non-Restructuring Charges					686
Total Realignment Charges					2,793
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					2,107
2020 Realignment Program | FCD | Selling, general and administrative expense
Restructuring Cost and Reserve [Line Items]
Restructuring Charges					333
Non-Restructuring Charges					5,312
Total Realignment Charges					5,645
Restructuring Reserve [Roll Forward]
Charges, net of adjustments					$ 333