Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 12, 2020 | Jun. 28, 2019 | |
Entity Listings [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
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 Boulevard Suite 2300, | ||
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 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,069,855,077 | ||
Entity Common Stock, Shares Outstanding | 130,901,014 | ||
Documents Incorporated by Reference | Certain information contained in the definitive proxy statement for the registrant’s 2020 Annual Meeting of Shareholders scheduled to be held on May 21, 2020 is incorporated by reference into Part III hereof. | ||
Entity Central Index Key | 0000030625 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Common Stock | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Common Stock, $1.25 Par Value | ||
Trading Symbol | FLS | ||
Security Exchange Name | NYSE | ||
2022 Senior notes | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | 1.25% Senior Notes due 2022 | ||
Trading Symbol | FLS22A | ||
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 670,980 | $ 619,683 |
Accounts receivable, net | 795,538 | 792,434 |
Contract assets, net | 272,914 | 228,579 |
Inventories, net | 660,837 | 633,871 |
Prepaid expenses and other | 105,101 | 108,578 |
Total current assets | 2,505,370 | 2,383,145 |
Property, plant and equipment, net | 572,175 | 610,096 |
Operating lease right-of-use assets, net | 186,218 | |
Goodwill | 1,193,010 | 1,197,640 |
Deferred taxes | 54,879 | 44,682 |
Other intangible assets, net | 180,805 | 190,550 |
Other assets, net | 227,185 | 190,164 |
Total assets | 4,919,642 | 4,616,277 |
Current liabilities: | ||
Accounts payable | 447,582 | 418,893 |
Accrued liabilities | 401,385 | 391,406 |
Contract liabilities | 216,541 | 202,458 |
Debt due within one year | 11,272 | 68,218 |
Operating lease liabilities | 36,108 | |
Total current liabilities | 1,112,888 | 1,080,975 |
Long-term debt due after one year | 1,365,977 | 1,414,829 |
Operating lease liabilities | 151,523 | |
Retirement obligations and other liabilities | 473,295 | 459,693 |
Commitments and contingencies (See Note 14) | ||
Shareholders’ equity: | ||
Common shares, $1.25 par value, Shares authorized - 305,000, Shares issued - 176,793 and 176,793, respectively | 220,991 | 220,991 |
Capital in excess of par value | 501,045 | 494,551 |
Retained earnings | 3,695,862 | 3,543,007 |
Treasury shares, at cost — 46,262 and 46,237 shares, respectively | (2,051,583) | (2,049,404) |
Deferred compensation obligation | 8,334 | 7,117 |
Accumulated other comprehensive loss | (584,292) | (573,947) |
Total Flowserve Corporation shareholders’ equity | 1,790,357 | 1,642,315 |
Noncontrolling interests | 25,602 | 18,465 |
Total equity | 1,815,959 | 1,660,780 |
Total liabilities and equity | $ 4,919,642 | $ 4,616,277 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Shareholders’ equity: | ||
Common shares, par value (in dollars per share) | $ 1.25 | $ 1.25 |
Common stock, shares authorized (in shares) | 305,000 | 305,000 |
Common shares, shares issued (in shares) | 176,793 | 176,793 |
Treasury shares, shares (in shares) | 46,262 | 46,237 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Sales | $ 3,944,850 | $ 3,832,666 | $ 3,660,831 |
Cost of sales | (2,649,480) | (2,644,830) | (2,571,878) |
Gross profit | 1,295,370 | 1,187,836 | 1,088,953 |
Selling, general and administrative expense | (899,813) | (943,714) | (901,727) |
Gain (loss) on sale of businesses | 0 | (7,727) | 141,317 |
Net earnings from affiliates | 10,483 | 11,143 | 12,592 |
Operating income | 406,040 | 247,538 | 341,135 |
Interest expense | (54,980) | (58,160) | (59,730) |
Interest income | 8,409 | 6,465 | 3,429 |
Other income (expense), net | (17,619) | (19,569) | (21,827) |
Earnings before income taxes | 341,850 | 176,274 | 263,007 |
Provision for income taxes | (80,070) | (51,224) | (258,679) |
Net earnings, including noncontrolling interests | 261,780 | 125,050 | 4,328 |
Less: Net earnings attributable to noncontrolling interests | (8,112) | (5,379) | (1,676) |
Net earnings attributable to Flowserve Corporation | $ 253,668 | $ 119,671 | $ 2,652 |
Net earnings per share attributable to Flowserve Corporation common shareholders: | |||
Basic (in dollars per share) | $ 1.94 | $ 0.91 | $ 0.02 |
Diluted (in dollars per share) | $ 1.93 | $ 0.91 | $ 0.02 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings, including noncontrolling interests | $ 261,780 | $ 125,050 | $ 4,328 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments, net of deferred taxes of $(740), $(490) and $19,593 in 2019, 2018 and 2017, respectively | 6,561 | (63,146) | 98,830 |
Pension and other postretirement effects, net of deferred taxes of $(598), $3,103 and $(14,228) in 2019, 2018 and 2017, respectively | (16,514) | (4,892) | 20,775 |
Cash flow hedging activity, net of deferred taxes of $(38) in 2017 | 187 | 232 | 148 |
Other comprehensive income (loss) | (9,766) | (67,806) | 119,753 |
Comprehensive income, including noncontrolling interests | 252,014 | 57,244 | 124,081 |
Comprehensive income attributable to noncontrolling interests | (8,691) | (6,047) | (2,114) |
Comprehensive income attributable to Flowserve Corporation | $ 243,323 | $ 51,197 | $ 121,967 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign curency translation, taxes | $ (740) | $ (490) | $ 19,593 |
Pension and other postretirement effects, taxes | (598) | 3,103 | (14,228) |
Cash flow hedging activity, taxes | $ 0 | $ 0 | $ (38) |
Consolidated Statement of Share
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 Loss | Noncontrolling Interests |
Balance — (in shares) at Dec. 31, 2016 | 176,793 | 46,980 | ||||||
Balance — at Dec. 31, 2016 | $ 1,637,388 | $ 220,991 | $ 488,882 | $ 3,601,362 | $ (2,078,527) | $ 8,507 | $ (624,788) | $ 20,961 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock activity under stock plans | (4,510) | (23,479) | $ 18,969 | |||||
Stock activity under stock plans (in shares) | 509 | |||||||
Stock-based compensation | 22,820 | 22,820 | ||||||
Tax benefit associated with stock-based compensation | 103 | 103 | ||||||
Net earnings | 4,328 | 2,652 | 1,676 | |||||
Cash dividends declared | (100,067) | (100,067) | ||||||
Other comprehensive loss, net of tax | 119,753 | 119,315 | 438 | |||||
Other, net | (8,861) | (2,153) | (6,708) | |||||
Balance — (in shares) at Dec. 31, 2017 | 176,793 | 46,471 | ||||||
Balance — at Dec. 31, 2017 | 1,670,954 | $ 220,991 | 488,326 | 3,503,947 | $ (2,059,558) | 6,354 | (505,473) | 16,367 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock activity under stock plans | (3,533) | (13,687) | $ 10,154 | |||||
Stock activity under stock plans (in shares) | 234 | |||||||
Stock-based compensation | 19,912 | 19,912 | ||||||
Net earnings | 125,050 | 119,671 | 5,379 | |||||
Cash dividends declared | (100,253) | (100,253) | ||||||
Other comprehensive loss, net of tax | (67,806) | (68,474) | 668 | |||||
Other, net | $ (3,186) | 763 | (3,949) | |||||
Balance — (in shares) at Dec. 31, 2018 | 176,793 | 176,793 | 46,237 | |||||
Balance — at Dec. 31, 2018 | $ 1,660,780 | $ 220,991 | 494,551 | 3,543,007 | $ (2,049,404) | 7,117 | (573,947) | 18,465 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Stock activity under stock plans | (3,350) | (17,388) | $ 12,821 | 1,217 | ||||
Stock activity under stock plans (in shares) | 300 | |||||||
Stock-based compensation | 23,882 | 23,882 | ||||||
Net earnings | 261,780 | 253,668 | 8,112 | |||||
Cash dividends declared | (100,813) | (100,813) | ||||||
Other comprehensive loss, net of tax | (9,766) | (10,345) | 579 | |||||
Other, net | (1,554) | 0 | (1,554) | |||||
Repurchases of common shares (in shares) | (325) | |||||||
Repurchases of common shares | $ (15,000) | $ (15,000) | ||||||
Balance — (in shares) at Dec. 31, 2019 | 176,793 | 176,793 | 46,262 | |||||
Balance — at Dec. 31, 2019 | $ 1,815,959 | $ 220,991 | $ 501,045 | $ 3,695,862 | $ (2,051,583) | $ 8,334 | $ (584,292) | $ 25,602 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows — Operating activities: | |||
Net earnings, including noncontrolling interests | $ 261,780 | $ 125,050 | $ 4,328 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation | 90,619 | 95,820 | 101,438 |
Amortization of intangible and other assets | 13,862 | 16,653 | 17,016 |
Loss (gain) on disposition of businesses | 0 | 7,727 | (141,317) |
Stock-based compensation | 23,882 | 19,912 | 22,820 |
Provision for U.S. Tax Cuts and Jobs Act of 2017 | 0 | (5,654) | 115,320 |
Foreign currency, asset impairment and other non-cash adjustments | (11,224) | 36,052 | 33,087 |
Change in assets and liabilities: | |||
Accounts receivable, net | 2,883 | (25,448) | 60,216 |
Inventories, net | (31,058) | (29,314) | 48,642 |
Contract assets, net | (45,939) | (23,693) | 0 |
Prepaid expenses and other assets, net | 13,289 | (7,869) | 32,935 |
Contract liabilities | 14,390 | 33,710 | 0 |
Accounts payable | 22,870 | (4,823) | 12,403 |
Accrued liabilities and income taxes payable | 4,184 | (18,248) | (3,383) |
Retirement obligations and other | (39,881) | (44,314) | (43,431) |
Net deferred taxes | (6,916) | 15,270 | 50,992 |
Net cash flows provided (used) by operating activities | 312,741 | 190,831 | 311,066 |
Cash flows — Investing activities: | |||
Capital expenditures | (66,170) | (83,993) | (61,602) |
Proceeds from disposal of assets | 42,333 | 6,190 | 5,435 |
(Payments for) proceeds from disposition of businesses | 0 | (3,663) | 232,767 |
Net cash flows provided (used) by investing activities | (23,837) | (81,466) | 176,600 |
Cash flows — Financing activities: | |||
Payments on long-term debt | (105,000) | (60,000) | (60,000) |
Payments of deferred loan costs | 0 | 0 | (1,503) |
Proceeds from short-term financing | 75,000 | 0 | 0 |
Payments on short-term financing | (75,000) | 0 | 0 |
Proceeds under other financing arrangements | 4,639 | 3,377 | 7,359 |
Payments under other financing arrangements | (9,281) | (9,853) | (19,030) |
Payments related to tax withholding for stock-based compensation | (3,900) | (3,061) | (6,238) |
Repurchases of common shares | (15,000) | 0 | 0 |
Payments of dividends | (99,557) | (99,416) | (99,233) |
Other | (1,555) | (4,331) | (6,708) |
Net cash flows provided (used) by financing activities | (229,654) | (173,284) | (185,353) |
Effect of exchange rate changes on cash | (7,953) | (19,843) | 33,970 |
Net change in cash and cash equivalents | 51,297 | (83,762) | 336,283 |
Cash and cash equivalents at beginning of year | 619,683 | 703,445 | 367,162 |
Cash and cash equivalents at end of year | 670,980 | 619,683 | 703,445 |
Income taxes paid (net of refunds) | 66,372 | 87,009 | 59,409 |
Interest paid | $ 53,607 | $ 54,576 | $ 56,808 |
Significant Accounting Policies
Significant Accounting Policies and Accounting Developments | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies and Accounting Developments | SIGNIFICANT ACCOUNTING POLICIES AND ACCOUNTING DEVELOPMENTS We are principally engaged in the worldwide design, manufacture, distribution and service of industrial flow management equipment. We provide long lead time, custom and other highly-engineered pumps; standardized, general-purpose pumps; mechanical seals; engineered and industrial valves; related automation products; and services and solutions primarily for oil and gas, chemical, power generation, water management and other general industries requiring flow management products and services. Equipment manufactured and serviced by us is predominantly used in industries that deal with difficult-to-handle and corrosive fluids, as well as environments with extreme temperatures, pressure, horsepower and speed. Our business is affected by economic conditions in the United States ("U.S.") and other countries where our products are sold and serviced, by the cyclical nature and competitive environment of our industries served, by the relationship of the U.S. dollar to other currencies and by the demand for and pricing of our customers’ end products. Resegmentation — We have determined that there are meaningful operational synergies and benefits to combining our previously reported Engineered Product Division ("EPD") and Industrial Product Division ("IPD") segments into one reportable segment, Flowserve Pump Division ("FPD"). During the first quarter of 2019, we implemented a reorganization of our operating segments and as a result we report our financial information reflecting two operating segments, FPD and Flow Control Division ("FCD"). The reorganization of the segments reflects how our chief operating decision maker (Chief Executive Officer) regularly reviews financial information to allocate resources and assess performance. Prior periods' financial information were retrospectively adjusted to conform to the new reportable segment composition. Principles of Consolidation — The consolidated financial statements include the accounts of our company and our wholly and majority-owned subsidiaries. In addition, we would consolidate any variable interest entities for which we are deemed to be the primary beneficiary. Noncontrolling interests of non-affiliated parties have been recognized for all majority-owned consolidated subsidiaries. Intercompany profits/losses, transactions and balances among consolidated entities have been eliminated from our consolidated financial statements. Investments in unconsolidated affiliated companies, which represent noncontrolling ownership interests between 20% and 50% , are accounted for using the equity method, which approximates our equity interest in their underlying equivalent net book value under accounting principles generally accepted in the U.S. ("U.S. GAAP"). Investments in interests where we own less than 20% of the investee are accounted for by the cost method, whereby income is only recognized in the event of dividend receipt. Investments accounted for by the cost method are tested for impairment if an impairment indicator is present. Use of Estimates — The process of preparing financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect reported amounts of certain assets, liabilities, revenues and expenses. We believe our estimates and assumptions are reasonable; however, actual results may differ materially from such estimates. The most significant estimates and assumptions are used in determining: • Timing and amount of 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. Argentina Highly Inflationary — Effective July 1, 2018, Argentina was designated as hyperinflationary, and as a result, we began using the U.S. dollar as our functional currency in Argentina. Our Argentinian subsidiary's sales for the year ended December 31, 2019 represented approximately 1% of consolidated sales and its assets at December 31, 2019 represented approximately 2% of total consolidated assets. Assets primarily consisted of U.S. dollar-denominated monetary assets and Argentinian peso-denominated non-monetary assets at December 31, 2019 . In addition, certain of our operations in other countries sell equipment and parts that are typically denominated in U.S. dollars directly to Argentinian customers. Revenue Recognition — We adopted Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("New Revenue Standard") on January 1, 2018, using the modified retrospective method for transition; periods prior to January 1, 2018, are presented in accordance with "Revenue Recognition (Topic 605)" ("Topic 605"). 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. We recognize revenue when (or as) we satisfy a performance obligation by transferring control to a customer. Transfer of control is evaluated based on the customer’s ability to direct the use of and obtain substantially all of the benefits of a performance obligation. Revenue is recognized either over time or at a point in time, depending on the specific facts and circumstances for each contract, including the terms and conditions of the contract as agreed with the customer and the nature of the products or services to be provided. Our primary method for recognizing revenue over time is the percentage of completion (“POC”) method, whereby progress towards completion is measured by applying an input measure based on costs incurred to date relative to total estimated costs at completion. If control of the products and/or services does not transfer over time, then control transfers at a point in time. We determine the point in time that control transfers to a customer based on the evaluation of specific indicators, such as title transfer, risk of loss transfer, customer acceptance and physical possession. For a detailed discussion related to revenue recognition refer to Note 2. Cash and Cash Equivalents — We place temporary cash investments with financial institutions and, by policy, invest in those institutions and instruments that have minimal credit risk and market risk. These investments, with an original maturity of three months or less when purchased, are classified as cash equivalents. They are highly liquid and principal values are not subject to significant risk of change due to interest rate fluctuations. Allowance for Doubtful Accounts and Credit Risk — The allowance for doubtful accounts is established based on estimates of the amount of uncollectible accounts receivable, which is determined principally based upon the aging of the accounts receivable, but also customer credit history, industry and market segment information, economic trends and conditions and credit reports. Customer credit issues, customer bankruptcies or general economic conditions may also impact our estimates. Credit risks are mitigated by the diversity of our customer base across many different geographic regions and industries and by performing creditworthiness analyses on our customers. Additionally, we mitigate credit risk through letters of credit and advance payments received from our customers. We do not believe that we have any other significant concentrations of credit risk. Inventories and Related Reserves — Inventories are stated at the lower of cost and net realizable value. Cost is determined by the first-in, first-out method. Reserves for excess and obsolete inventories are based upon our assessment of market conditions for our products determined by historical usage and estimated future demand. Due to the long life cycles of our products, we carry spare parts inventories that have historically low usage rates and provide reserves for such inventory based on demonstrated usage and aging criteria. Income Taxes, Deferred Taxes, Tax Valuation Allowances and Tax Reserves — We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are calculated using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. We record valuation allowances to reduce the carrying value of deferred tax assets to amounts that we expect are more likely than not to be realized. We assess existing deferred tax assets, net operating losses and tax credits by jurisdiction and expectations of our ability to utilize these tax attributes through a review of past, current and estimated future taxable income and establishment of tax planning strategies. We provide deferred taxes for the temporary differences associated with our investment in foreign subsidiaries that have a financial reporting basis that exceeds tax basis, unless we can assert permanent reinvestment in foreign jurisdictions. Financial reporting basis and tax basis differences in investments in foreign subsidiaries consist of both unremitted earnings and losses, as well as foreign currency translation adjustments. The amount of income taxes we pay is subject to ongoing audits by federal, state, and foreign tax authorities, which often result in proposed assessments. We establish reserves for open tax years for uncertain tax positions that may be subject to challenge by various tax authorities. The consolidated tax provision and related accruals include the impact of such reasonably estimable losses and related interest and penalties as deemed appropriate. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The determination is based on the technical merits of the position and presumes that each uncertain tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. Legal and Environmental Contingencies — Legal and environmental reserves are recorded based upon a case-by-case analysis of the relevant facts and circumstances and an assessment of potential legal obligations and costs. Amounts relating to legal and environmental liabilities are recorded when it is probable that a loss has been incurred and such loss is reasonably estimable. Assessments of legal and environmental costs are based on information obtained from our independent and in-house experts and our loss experience in similar situations. Estimates are updated as applicable when new information regarding the facts and circumstances of each matter becomes available. Legal fees associated with legal and environmental liabilities are expensed as incurred. Estimates of liabilities for unsettled asbestos-related claims are based on known claims and on our experience during the preceding two years for claims filed, settled and dismissed, with adjustments for events deemed unusual and unlikely to recur, and are included in retirement obligations and other liabilities in our consolidated balance sheets. A substantial majority of our asbestos-related claims are covered by insurance or indemnities. Estimated indemnities and receivables from insurance carriers for unsettled claims and receivables for settlements and legal fees paid by us for asbestos-related claims are estimated using our historical experience with insurance recovery rates and estimates of future recoveries, which include estimates of coverage and financial viability of our insurance carriers. Estimated receivables are included in other assets, net in our consolidated balance sheets. We have claims pending against certain insurers that, if resolved more favorably than estimated future recoveries, would result in discrete gains in the applicable quarter. We are currently unable to estimate the impact, if any, of unasserted asbestos-related claims, although future claims would also be subject to existing indemnities and insurance coverage. Warranty Accruals — Warranty obligations are based upon product failure rates, materials usage, service delivery costs, an analysis of all identified or expected claims and an estimate of the cost to resolve such claims. The estimates of expected claims are generally a factor of historical claims and known product issues. Warranty obligations based on these factors are adjusted based on historical sales trends for the preceding 24 months . Insurance Accruals — Insurance accruals are recorded for wholly or partially self-insured risks such as medical benefits and workers’ compensation and are based upon an analysis of our claim loss history, insurance deductibles, policy limits and other relevant factors that are updated annually and are included in accrued liabilities in our consolidated balance sheets. The estimates are based upon information received from actuaries, insurance company adjusters, independent claims administrators or other independent sources. Receivables from insurance carriers are estimated using our historical experience with insurance recovery rates and estimates of future recoveries, which include estimates of coverage and financial viability of our insurance carriers. Estimated receivables are included in accounts receivable, net and other assets, net, as applicable, in our consolidated balance sheets. Pension and Postretirement Obligations — Determination of pension and postretirement benefits obligations is based on estimates made by management in consultation with independent actuaries and investment advisors. Inherent in these valuations are assumptions including discount rates, expected rates of return on plan assets, retirement rates, mortality rates and rates of compensation increase and other factors all of which are reviewed annually and updated if necessary. Current market conditions, including changes in rates of return, interest rates and medical inflation rates, are considered in selecting these assumptions. Actuarial gains and losses and prior service costs are recognized in accumulated other comprehensive loss as they arise and we amortize these costs into net pension expense over the remaining expected service period. Property, Plant and Equipment and Depreciation — Property, plant and equipment are stated at historical cost, less accumulated depreciation. If asset retirement obligations exist, they are capitalized as part of the carrying amount of the asset and depreciated over the remaining useful life of the asset. The useful lives of leasehold improvements are the lesser of the remaining lease term or the useful life of the improvement. When assets are retired or otherwise disposed of, their costs and related accumulated depreciation are removed from the accounts and any resulting gains or losses are included in income from operations for the period. Depreciation is computed by the straight-line method based on the estimated useful lives of the depreciable assets, or in the case of assets under finance leases, over the related lease term. Generally, the estimated useful lives of the assets are: Buildings and improvements 10 to 40 years Machinery, equipment and tooling 3 to 14 years Software, furniture and fixtures and other 3 to 7 years Costs related to routine repairs and maintenance are expensed as incurred. Leases — We have operating and finance leases for certain manufacturing facilities, offices, service and quick response centers, machinery, equipment and automobiles. Our leases have remaining lease terms of up to 34 years . The terms and conditions of our leases may include options to extend or terminate the lease which are considered and included in the lease term when these options are reasonably certain of exercise. We determine if a contract is (or contains) a lease at inception by evaluating whether the contract conveys the right to control the use of an identified asset. For all classes of leased assets, we account for any non-lease components in the contract together with the related lease component in the same unit of account. For lease contracts containing more than one lease component, we allocate the contract consideration to each of the lease components on the basis of relative standalone prices in order to identify the lease payments for each lease component. ROU assets and lease liabilities are recognized in our consolidated balance sheets at the commencement date based on the present value of remaining lease payments over the lease term. Additionally, ROU assets include any lease payments made at or before the commencement date, as well as any initial direct costs incurred, and are reduced by any lease incentives received. For a detailed discussion related to leases refer to Note 4. Internally Developed Software — We capitalize certain costs associated with the development of internal-use software. Generally, these costs are related to significant software development projects and are amortized over their estimated useful life, typically three to five years, upon implementation of the software. Intangible Assets — Intangible assets, excluding trademarks (which are considered to have an indefinite life), consist primarily of engineering drawings, patents, existing customer relationships, software, distribution networks and other items that are being amortized over their estimated useful lives generally ranging from four to 40 years . These assets are reviewed for impairment whenever events and circumstances indicate impairment may have occurred. Valuation of Goodwill, Indefinite-Lived Intangible Assets and Other Long-Lived Assets — The value of goodwill and indefinite-lived intangible assets is tested for impairment as of December 31 each year or whenever events or circumstances indicate such assets may be impaired. The identification of our reporting units began at the operating segment level and considered whether components one level below the operating segment levels should be identified as reporting units for purpose of testing goodwill for impairment based on certain conditions. These conditions included, among other factors, (i) the extent to which a component represents a business and (ii) the aggregation of economically similar components within the operating segments and resulted in four reporting units. Other factors that were considered in determining whether the aggregation of components was appropriate included the similarity of the nature of the products and services, the nature of the production processes, the methods of distribution and the types of industries served. An impairment loss for goodwill is recognized if the implied fair value of goodwill is less than the carrying value. We estimate the fair value of our reporting units based on an income approach, whereby we calculate the fair value of a reporting unit based on the present value of estimated future cash flows. A discounted cash flow analysis requires us to make various judgmental assumptions about future sales, operating margins, growth rates and discount rates, which are based on our budgets, business plans, economic projections, anticipated future cash flows and market participants. We did not record an impairment of goodwill in 2019, 2018 or 2017. We also considered our market capitalization in our evaluation of the fair value of our goodwill. Our market capitalization increased as compared with 2018 and did not indicate a potential impairment of our goodwill as of December 31, 2019. Impairment losses for indefinite-lived intangible assets are recognized whenever the estimated fair value is less than the carrying value. Fair values are calculated for trademarks using a "relief from royalty" method, which estimates the fair value of a trademark by determining the present value of estimated royalty payments that are avoided as a result of owning the trademark. This method includes judgmental assumptions about sales growth and discount rates that have a significant impact on the fair value and are substantially consistent with the assumptions used to determine the fair value of our reporting unit discussed above. We did not record a material impairment of our trademarks in 2019 , 2018 or 2017 . The recoverable value of other long-lived assets, including property, plant and equipment and finite-lived intangible assets, is reviewed when indicators of potential impairments are present. The recoverable value is based upon an assessment of the estimated future cash flows related to those assets, utilizing assumptions similar to those for goodwill. Additional considerations related to our long-lived assets include expected maintenance and improvements, changes in expected uses and ongoing operating performance and utilization. Deferred Loan Costs — Deferred loan costs, consisting of fees and other expenses associated with debt financing, are amortized over the term of the associated debt using the effective interest method. Additional amortization is recorded in periods where optional prepayments on debt are made. Fair Values of Financial Instruments — Our financial instruments are presented at fair value in our consolidated balance sheets, with the exception of our long-term debt. 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 consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Hierarchical levels, as defined by Accounting Standards Codification ("ASC") 820, "Fair Value Measurements and Disclosures," are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities. An asset or a liability’s categorization within the fair value hierarchy is based on the lowest level of significant input to its valuation. Hierarchical levels are as follows: Level I — Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level II — Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level III — Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Recurring fair value measurements are limited to investments in derivative instruments and certain equity securities. 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 derivative instruments are included in Note 8. The fair value measurements of our investments in equity securities are determined using quoted market prices and are classified as Level I. The fair values of our investments in equity securities, and changes thereto, are immaterial to our consolidated financial position and results of operations. Derivatives and Hedging Activities — We have a foreign currency derivatives and hedging policy outlining the conditions under which we can enter into financial derivative transactions. We do not use derivative instruments for trading or speculative purposes. All derivative instruments are recognized on the balance sheet at their fair values. We employ a foreign currency economic hedging strategy to mitigate certain financial risks resulting from foreign currency exchange rate movements that impact foreign currency denominated receivables and payables, firm committed transactions and forecasted sales and purchases. The changes in the fair values are recognized immediately in other income (expense), net in the consolidated statements of income. See Note 8 for further discussion of forward exchange contracts. 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 forward exchange contracts and expect all counterparties to meet their obligations. If necessary, we would adjust the values of our derivative contracts for our or our counterparties’ credit risks. Foreign Currency Translation — Assets and liabilities of our foreign subsidiaries are translated to U.S. dollars at exchange rates prevailing at the balance sheet date, while income and expenses are translated at average rates for each month. Translation gains and losses are reported as a component of accumulated other comprehensive loss. Transactional currency gains and losses arising from transactions in currencies other than our sites’ functional currencies are included in our consolidated results of operations. Transaction and translation gains and losses arising from intercompany balances are reported as a component of accumulated other comprehensive loss when the underlying transaction stems from a long-term equity investment or from debt designated as not due in the foreseeable future. Otherwise, we recognize transaction gains and losses arising from intercompany transactions as a component of income. Where intercompany balances are not long-term investment related or not designated as due beyond the foreseeable future, we may mitigate risk associated with foreign currency fluctuations by entering into forward exchange contracts. Stock-Based Compensation — Stock-based compensation is measured at the grant-date fair value. The exercise price of stock option awards and the value of restricted share, restricted share unit and performance-based unit awards (collectively referred to as "Restricted Shares") are set at the closing price of our common stock on the New York Stock Exchange on the date of grant, which is the date such grants are authorized by our Board of Directors. Restricted share units and performance-based units refer to restricted awards that do not have voting rights and accrue dividends, and are forfeited if vesting does not occur. The intrinsic value of Restricted Shares, which is typically the product of share price at the date of grant and the number of Restricted Shares granted, is amortized on a straight-line basis to compensation expense over the periods in which the restrictions lapse based on the expected number of shares that will vest. We account for forfeitures as they occur resulting in the reversal of cumulative expense previously recognized. Earnings Per Share — We use the two-class method of calculating Earnings Per Share ("EPS"), which determines earnings per share for each class of common stock and participating security as if all earnings for the period had been distributed. Unvested restricted share awards that earn non-forfeitable dividend rights qualify as participating securities and, accordingly, are included in the basic computation as such. Our unvested Restricted Shares participate on an equal basis with common shares; therefore, there is no difference in undistributed earnings allocated to each participating security. Accordingly, the presentation below is prepared on a combined basis and is presented as earnings per common share. The following is a reconciliation of net earnings of Flowserve Corporation and weighted average shares for calculating net earnings per common share: Year Ended December 31, 2019 2018 2017 (Amounts in thousands, except per share data) Net earnings of Flowserve Corporation $ 253,668 $ 119,671 $ 2,652 Dividends on restricted shares not expected to vest — — — Earnings attributable to common and participating shareholders $ 253,668 $ 119,671 $ 2,652 Weighted average shares: Common stock 131,012 130,794 130,600 Participating securities 22 29 103 Denominator for basic earnings per common share 131,034 130,823 130,703 Effect of potentially dilutive securities 685 448 655 Denominator for diluted earnings per common share 131,719 131,271 131,358 Net earnings per share attributable to Flowserve Corporation common shareholders: Basic $ 1.94 $ 0.91 $ 0.02 Diluted 1.93 0.91 0.02 Diluted earnings per share 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, restricted shares, restricted share units and performance share units. Research and Development Expense — Research and development costs are charged to expense when incurred. Aggregate research and development costs included in SG&A were $42.0 million , $39.6 million and $38.6 million in 2019 , 2018 and 2017 , respectively. Costs incurred for research and development primarily include salaries and benefits and consumable supplies, as well as rent, professional fees, utilities and the depreciation of property and equipment used in research and development activities. Accounting Developments Pronouncements Implemented In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) ("New Lease Standard"). The New Lease Standard increases transparency and comparability by requiring lessees to recognize right-of-use (“ROU”) assets and lease liabilities for operating leases on their consolidated balance sheets. Additionally, expanded disclosures are required to enable users of financial statements to understand the amount, timing and uncertainty of cash flows arising from leases. We adopted the New Lease Standard effective January 1, 2019, utilizing the modified retrospective approach and elected an initial application date of January 1, 2019. The adoption resulted in an increase to total assets and liabilities due to the recording of lease ROU assets and lease liabilities of approximately $225 million as of January 1, 2019. The adoption did not materially impact our consolidated results of operations or cash flows. Refer to Note 4 for further discussion of our adoption of the New Lease Standard. On July 13, 2017, the FASB issued ASU No. 2017-11, “Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatory Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatory Redeemable Noncontrolling Interests with a Scope Exception.” The ASU amends guidance in FASB Accounting Standards Codification ("ASC") 260, Earnings Per Share, FASB ASC 480, Distinguishing Liabilities from Equity, and FASB ASC 815, Derivatives and Hedging. The amendments in Part I of this ASU change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. The amendments in this ASU must be applied to annual reporting periods beginning after December 15, 2018. Our adoption of ASU No. 2017-11 effective January 1, 2019 did not have an impact on our consolidated financial condition and results of operations. On August 28, 2017, the FASB issued ASU No. 2017-12, "Derivatives and Hedging |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION We enter into contracts with customers often having 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. We evaluate the commitments in our contracts with customers to determine if the commitments are both capable of being distinct and distinct in the context of the contract in order to identify performance obligations. We recognize revenue when (or as) we satisfy a performance obligation by transferring control of the performance obligation to a customer. Control of a performance obligation may transfer to the customer either over time or at a point in time depending on an evaluation of the specific facts and circumstances for each contract, including the terms and conditions of the contract as agreed with the customer, as well as the nature of the products or services to be provided. Our larger contracts are typically completed within a one to three-year period, while many other contracts, such as “short cycle” contracts, have a shorter timeframe for revenue recognition. Control transfers over time when the customer is able to direct the use of and obtain substantially all of the benefits of our work as we perform. This typically occurs when products have no alternative use and we have a right to payment for performance completed to date, including a reasonable profit margin. Our contracts often include cancellation provisions that require the customer to reimburse us for costs incurred up to the date of cancellation, and some contracts also provide for reimbursement of profit upon cancellation in addition to costs incurred to date. Our primary method for recognizing revenue over time is the POC method. We measure progress towards completion by applying an input measure based on costs incurred to date relative to total estimated costs at completion (i.e., the cost-to-cost method). This method provides a reasonable depiction of the transfer of control of products and services to customers as it ensures our efforts towards satisfying a performance obligation, as reflected by costs incurred, are included in the measure of progress used for recognition of revenue. Costs generally include direct labor, direct material and manufacturing overhead. Costs that do not contribute towards control transfer are generally immaterial, but are excluded from the measure of progress in the event they are significant. Prior to the adoption of the New Revenue Standard effective January 1, 2018, revenue recognized under the POC method had been 4% to 10% of our consolidated sales. Under the New Revenue Standard, we have experienced an increase in the amount of revenue recognized over time. This increase is primarily due to the application of the new “transfer of control” model for revenue recognition. Under this model, revenue for performance obligations subject to contractual transfer of control during the manufacturing process are recognized over time. This includes contracts with cancellation provisions that require reimbursement for costs incurred plus a reasonable margin and for which the performance obligation has no alternative use. Revenue from products and services transferred to customers over time accounted for approximately 19% , 22% and 4% of total revenue for the years ended December 31, 2019 , 2018 and 2017 , 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 81% , 78% and 96% of total revenue for the years ended December 31, 2019 , 2018 and 2017 , respectively. A contract modification, or “change order,” occurs when the existing enforceable rights and obligations of a contract change, such as a change in the scope, price or terms and conditions. We account for a change order as a new accounting contract when the change order is limited to adding new, distinct products and services that are priced in an amount consistent with standalone selling price. Other change orders are accounted for as a modification of the existing accounting contract. When a change order occurs for a contract having in-process over time performance obligations, the effect of the change order on the transaction price and the measure of progress for the performance obligations to which it relates is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. Freight charges billed to customers are included in sales and the related shipping costs are included in cost of sales ("COS") in our consolidated statements of income. If shipping activities are performed after a customer obtains control of a product, we apply a policy election to account for shipping as an activity to fulfill the promise to transfer the product to the customer. We apply a policy election to exclude transaction taxes collected from customers from sales when the tax is both imposed on and concurrent with a specific revenue-producing transaction. In certain instances, we provide guaranteed completion dates under the terms of our contracts. Failure to meet contractual delivery dates can result in late delivery penalties or liquidated damages. In the event that the transaction price of such a contract is probable of experiencing a significant reversal due to a penalty, we constrain a portion of the transaction price. This reduction to the transaction price could potentially cause estimated total contract costs to exceed the transaction price, in which case we record a provision for the estimated loss in the period the loss is first projected. In circumstances where the transaction price still exceeds total projected costs, the estimated penalty generally reduces profitability of the contract at the time of subsequent revenue recognition. Our incremental costs to obtain a contract are limited to sales commissions. We apply the practical expedient to expense commissions as incurred for contracts having a duration of one year or less. Sales commissions related to contracts with a duration of greater than one year are immaterial to our financial statements and are also expensed as incurred. Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account for recognition of revenue. Many of our contracts have multiple performance obligations as the promise to transfer the individual goods or services, or certain groups of goods and services, is separately identifiable from other promises in the contract. We allocate the transaction price of each contract to the performance obligations on the basis of standalone selling price and recognize revenue when, or as, control of each performance obligation transfers to the customer. For standard products, we identify the standalone selling price based on directly observable information. For customized or unique products and services, we apply the cost plus margin approach to estimate the standalone selling price. Under this method, we forecast our expected costs of satisfying a performance obligation and then add an appropriate standalone market margin for that distinct good or service. We have elected to use the practical expedient to not adjust the transaction price of a contract for the effects of a significant financing component if, at the inception of the contract, we expect that the period between when we transfer a promised good or service to a customer and when the customer pays for that good or service will be one year or less. On December 31, 2019 , the aggregate transaction price allocated to unsatisfied (or partially unsatisfied) performance obligations related to contracts having an original expected duration in excess of one year was approximately $709 million . We estimate recognition of approximately $593 million of this amount as revenue in 2020 and an additional $116 million in 2021 and thereafter. Disaggregated Revenue We conduct our operations through two business segments based on the type of product and how we manage the business: • Flowserve Pump Division ("FPD") for custom, highly-engineered pumps, pre-configured industrial pumps, pump systems, mechanical seals, auxiliary systems and replacement parts and related services; and • Flow Control Division ("FCD") for engineered and industrial valves, control valves, actuators and controls and related services. 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 table presents our customer revenues disaggregated by revenue source: December 31, 2019 (Amounts in thousands) FPD FCD Total Original Equipment $ 994,719 $ 972,424 $ 1,967,143 Aftermarket 1,709,726 267,981 1,977,707 $ 2,704,445 $ 1,240,405 $ 3,944,850 December 31, 2018 (Amounts in thousands) FPD FCD Total Original Equipment $ 992,162 $ 943,893 $ 1,936,055 Aftermarket 1,628,326 268,285 1,896,611 $ 2,620,488 $ 1,212,178 $ 3,832,666 December 31, 2017 (1) (Amounts in thousands) FPD FCD Total Original Equipment $ 968,856 $ 906,890 $ 1,875,746 Aftermarket 1,508,882 276,203 1,785,085 $ 2,477,738 $ 1,183,093 $ 3,660,831 __________________________ (1) Presented in accordance with Topic 605. Our customer sales are diversified geographically. The following table presents our revenues disaggregated by geography, based on the shipping addresses of our customers: December 31, 2019 (Amounts in thousands) FPD FCD Total North America(1) $ 1,085,627 $ 543,986 $ 1,629,613 Latin America(1) 202,247 28,899 231,146 Middle East and Africa 355,937 98,959 454,896 Asia Pacific 499,932 319,235 819,167 Europe 560,702 249,326 810,028 $ 2,704,445 $ 1,240,405 $ 3,944,850 December 31, 2018 (Amounts in thousands) FPD FCD Total North America(1) $ 1,037,637 $ 540,316 $ 1,577,953 Latin America(1) 219,376 22,405 241,781 Middle East and Africa 329,484 138,240 467,724 Asia Pacific 502,559 279,109 781,668 Europe 531,432 232,108 763,540 $ 2,620,488 $ 1,212,178 $ 3,832,666 December 31, 2017 (2) (Amounts in thousands) FPD FCD Total North America(1) $ 969,417 $ 477,275 $ 1,446,692 Latin America(1) 168,971 33,207 202,178 Middle East and Africa 327,366 155,447 482,813 Asia Pacific 445,001 239,197 684,198 Europe 566,983 277,967 844,950 $ 2,477,738 $ 1,183,093 $ 3,660,831 _____________________________________ (1) North America represents United States and Canada; Latin America includes Mexico. (2) Presented in accordance with Topic 605. 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 bill the customer under the terms of a contract. A contract liability represents our contractual billings in advance of revenue recognized for a contract. The following table presents opening and closing balances of contract assets and contract liabilities, current and long-term, for the years ended December 31, 2019 and 2018: ( Amounts in thousands) Contract Assets, net (Current) Long-term Contract Assets, net(1) Contract Liabilities (Current) Long-term Contract Liabilities(2) Balance — January 1, 2018 $ 219,361 $ 3,990 $ 178,515 $ 3,925 Revenue recognized that was included in contract liabilities at the beginning of the period — — (123,458 ) (1,360 ) Increase due to revenue recognized in the period in excess of billings 846,922 6,668 — — Increase due to billings arising during the period in excess of revenue recognized — — 152,664 (481 ) Amounts transferred from contract assets to receivables (815,213 ) (2,503 ) — — Currency effects and other, net (22,491 ) 2,812 (5,263 ) (714 ) Balance — December 31, 2018 $ 228,579 $ 10,967 $ 202,458 $ 1,370 Revenue recognized that was included in contract liabilities at the beginning of the period — — (125,274 ) — Increase due to revenue recognized in the period in excess of billings 835,147 — — — Increase due to billings arising during the period in excess of revenue recognized — — 135,695 290 Amounts transferred from contract assets to receivables (785,279 ) (1,747 ) — — Currency effects and other, net (5,533 ) 60 3,662 (8 ) Balance — December 31, 2019 $ 272,914 $ 9,280 $ 216,541 $ 1,652 _____________________________________ (1) Included in other assets, net. |
Dispositions
Dispositions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Dispositions | DISPOSITIONS FPD Business Divestiture On June 29, 2018, pursuant to a plan of sale approved by management, we executed an agreement to divest two FPD locations and associated product lines, including the related assets and liabilities. This transaction did not meet the criteria for classification of assets held for sale as of June 30, 2018 due to a contingency that could have potentially impacted the final terms and/or timing of the divestiture. The sale transaction was completed on August 9, 2018. During the twelve months ended December 31, 2018, we recorded a pre-tax charge of $25.1 million , including a pre-tax charge of $17.4 million in the second quarter of 2018 and a loss on sale of the business of $7.7 million in the third quarter of 2018. The second quarter of 2018 pre-tax charge related to write-downs of inventory and long-lived assets to their estimated fair value, of which $7.7 million was recorded in COS and $9.7 million was recorded in SG&A. The third quarter of 2018 pre-tax charge primarily related to working capital changes since the second quarter of 2018 and net cash transferred at the closing date of $3.7 million . The sale included a manufacturing facility in Germany and a related assembly facility in France. In 2017, net sales related to the business totaled approximately $42 million , although the business produced an operating loss in 2016 and 2015. Vogt Effective July 6, 2017, we sold our FCD's Vogt product line and related assets and liabilities to a privately held company for $28.0 million of cash received at closing. The sale resulted in a pre-tax gain of $11.1 million recorded in gain on sale of business in the consolidated statements of income. In 2016, net sales related to the Vogt business totaled approximately $17 million , with earnings before interest and taxes of approximately $4 million . Gestra AG Effective May 2, 2017, we sold our FCD's Gestra AG ("Gestra") business to a leading provider of steam system solutions for $203.6 million ( €178.3 million ) of cash received in 2017. The sale resulted in a pre-tax gain of $130.2 million ( $79.4 million after-tax) recorded in gain on sale of business in the consolidated statements of income. The sale included Gestra’s manufacturing facility in Germany as well as related operations in the U.S., the United Kingdom ("U.K."), Spain, Poland, Italy, Singapore and Portugal. In 2016, Gestra recorded revenues of approximately $101 million ( €92 million ) with earnings before interest and taxes of approximately $17 million ( €15 million |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2018 are as follows: FPD FCD Total (Amounts in thousands) Balance as of December 31, 2017 $ 801,509 $ 416,679 $ 1,218,188 Currency translation and other (11,370 ) (9,178 ) (20,548 ) Balance as of December 31, 2018 $ 790,139 $ 407,501 $ 1,197,640 Currency translation and other (3,509 ) (1,121 ) (4,630 ) Balance as of December 31, 2019 $ 786,630 $ 406,380 $ 1,193,010 The following table provides information about our intangible assets for the years ended December 31, 2019 and 2018 : December 31, 2019 December 31, 2018 Useful Life (Years) Ending Gross Amount Accumulated Amortization Ending Gross Amount Accumulated Amortization (Amounts in thousands, except years) Finite-lived intangible assets: Engineering drawings(1) 10-22 $ 89,490 $ (78,854 ) $ 89,796 $ (75,239 ) Existing customer relationships(2) 5-10 81,844 (53,468 ) 82,235 (47,016 ) Patents 9-16 26,132 (26,132 ) 26,251 (26,136 ) Other 4-40 92,920 (40,149 ) 88,138 (37,145 ) $ 290,386 $ (198,603 ) $ 286,420 $ (185,536 ) Indefinite-lived intangible assets(3) $ 90,607 $ (1,585 ) $ 91,251 $ (1,585 ) ____________________________________ (1) Engineering drawings represent the estimated fair value associated with specific acquired product and component schematics. (2) Existing customer relationships acquired prior to 2011 had a useful life of five years . (3) Accumulated amortization for indefinite-lived intangible assets relates to amounts recorded prior to the implementation date of guidance issued in ASC 350. The following schedule outlines actual amortization expense recognized during 2019 and an estimate of future amortization based upon the finite-lived intangible assets owned at December 31, 2019 : Amortization Expense (Amounts in thousands) Actual for year ended December 31, 2019 $ 13,769 Estimated for year ended December 31, 2020 13,637 Estimated for year ended December 31, 2021 13,183 Estimated for year ended December 31, 2022 10,666 Estimated for year ended December 31, 2023 8,402 Estimated for year ended December 31, 2024 6,428 Thereafter 39,467 Amortization expense for finite-lived intangible assets was $14.1 million in 2018 and $15.3 million in 2017 . |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories, net consisted of the following: December 31, 2019 2018 (Amounts in thousands) Raw materials $ 328,080 $ 310,204 Work in process 192,993 191,660 Finished goods 218,408 205,814 Less: Excess and obsolete reserve (78,644 ) (73,807 ) Inventories, net $ 660,837 $ 633,871 During 2019 , 2018 and 2017 , we recognized expenses of $17.1 million , $16.2 million and $22.9 million , respectively, for excess and obsolete inventory. These expenses are included in COS in our consolidated statements of income. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES We adopted the New Lease Standard effective January 1, 2019 utilizing the modified retrospective approach and have elected an initial application date of January 1, 2019. Adoption of the New Lease Standard resulted in an increase to total assets and liabilities due to the recording of lease ROU assets and lease liabilities of approximately $225 million as of January 1, 2019. Our adoption of the New Lease Standard included modification of certain accounting policies and practices, business processes, systems and controls in order to support compliance with the requirements. We elected the package of three practical expedients for transition, which include the carry forward of our leases without reassessing whether any contracts are leases or contain leases, lease classification and initial direct costs. We elected the transition practical expedient to apply hindsight when determining the lease term and when assessing impairment of ROU assets at the adoption date, which allows us to update our assessments according to new information and changes in facts and circumstances that have occurred since lease inception. We have certain land easements that have historically been accounted for as finite-lived intangible assets. We elected the practical expedient related to land easements, allowing us to carry forward our accounting treatment for land easements on existing agreements as intangible assets. Any new or modified land easements will be accounted for as leases under the New Lease Standard. Presentation of Leases We have operating and finance leases for certain manufacturing facilities, offices, service and quick response centers, machinery, equipment and automobiles. Our leases have remaining lease terms of up to 34 years . The terms and conditions of our leases may include options to extend or terminate the lease which are considered and included in the lease term when these options are reasonably certain of exercise. We determine if a contract is (or contains) a lease at inception by evaluating whether the contract conveys the right to control the use of an identified asset. For all classes of leased assets, we have elected the practical expedient to account for any non-lease components in the contract together with the related lease component in the same unit of account. For lease contracts containing more than one lease component, we allocate the contract consideration to each of the lease components on the basis of relative standalone prices in order to identify the lease payments for each lease component. ROU assets and lease liabilities are recognized in our consolidated balance sheets at the commencement date based on the present value of remaining lease payments over the lease term. Additionally, ROU assets include any lease payments made at or before the commencement date, as well as any initial direct costs incurred, and are reduced by any lease incentives received. As most of our operating leases do not provide an implicit rate, we apply our incremental country-specific borrowing rate to determine the present value of remaining lease payments. Our incremental borrowing country-specific rate is determined based on information available at the commencement date of the lease. Operating leases are included in operating lease right-of-use assets, net and operating lease liabilities in our consolidated balance sheets. Finance leases are included in property plant and equipment, debt due within one year and long-term debt due after one year in our consolidated balance sheets. For all classes of leased assets, we have applied an accounting policy election to exclude short-term leases from recognition in our consolidated balance sheets. A short-term lease has a lease term of 12 months or less at the commencement date and does not include a purchase option that is reasonably certain of exercise. We recognize short-term lease expense in our consolidated income statements on a straight-line basis over the lease term. Our short-term lease expense and short-term lease commitments as of December 31, 2019 are immaterial. We have certain lease contracts with terms and conditions that provide for variability in the payment amount based on changes in facts or circumstances occurring after the commencement date. These variable lease payments are recognized in our consolidated income statements as the obligation is incurred. We have certain lease contracts where we provide a guarantee to the lessor that the value of an underlying asset will be at least a specified amount at the end of the lease. Estimated amounts expected to be paid for residual value guarantees are included in lease liabilities and ROU assets. As of December 31, 2019 , we had $34.7 million of legally binding minimum lease payments for operating leases signed but not yet commenced. We did not have material subleases, leases that imposed significant restrictions or covenants, material related party leases or sale-leaseback arrangements. Other information related to our leases is as follows: December 31, (Amounts in thousands) 2019 Operating Leases: ROU assets recorded under operating leases $ 220,865 Accumulated amortization associated with operating leases (34,647 ) Total operating leases ROU assets, net $ 186,218 Liabilities recorded under operating leases (current) $ 36,108 Liabilities recorded under operating leases (non-current) 151,523 Total operating leases liabilities $ 187,631 Finance Leases: ROU assets recorded under finance leases $ 19,606 Accumulated depreciation associated with finance leases (7,551 ) Total finance leases ROU assets, net(1) $ 12,055 Total finance leases liabilities(2) $ 11,788 The costs components of operating and finance leases are as follows: December 31, (Amounts in thousands) 2019 Operating Lease Costs: Fixed lease expense(3) $ 57,450 Variable lease expense(3) 6,492 Total operating lease expense $ 63,942 Finance Lease Costs: Depreciation of finance lease ROU assets(3) $ 4,729 Interest on lease liabilities(4) 352 Total finance lease expense $ 5,081 _____________________ (1) Included in property plant and equipment, net (2) Included in debt due within one year and long-term debt due after one year, accordingly (3) Included in cost of sales and selling, general and administrative expense, accordingly (4) Included in interest expense Supplemental cash flows information as of and for the year ended December 31, 2019 : (Amounts in thousands, except lease term and discount rate) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases(1) $ 64,725 Financing cash flows from finance leases(2) 4,465 ROU assets obtained in exchange for lease obligations: Operating leases $ 14,569 Finance leases 10,615 Weighted average remaining lease term (in years) Operating leases 9 years Finance leases 3 years Weighted average discount rate (percent) Operating leases 4.5 % Finance leases 3.6 % _____________________ (1) Included in our consolidated statement of cash flows, operating activities, prepaid expenses and other assets, net and retirement obligations and other (2) Included in our consolidated statement of cash flows, financing activities, payments under other financing arrangements Future undiscounted lease payments under operating and finance leases as of December 31, 2019 , were as follows (amounts in thousands): Year ending December 31, Operating Leases Finance Leases 2020 42,164 4,897 2021 32,762 3,660 2022 27,378 2,417 2023 23,120 1,101 2024 18,160 277 Thereafter 84,742 96 Total future minimum lease payments $ 228,326 $ 12,448 Less: Imputed interest (40,695 ) (660 ) Total $ 187,631 $ 11,788 Other current liabilities $ 36,108 $ — Operating lease liabilities 151,523 — Debt due within one year — 4,622 Long-term debt due after one year — 7,166 Total $ 187,631 $ 11,788 The future minimum lease payments as of December 31, 2018 were as follows (amounts in thousands): Year ending December 31, 2019 $ 68,443 2020 49,874 2021 38,446 2022 28,496 2023 21,473 Thereafter 66,518 Total future minimum lease payments $ 273,250 |
Leases | LEASES We adopted the New Lease Standard effective January 1, 2019 utilizing the modified retrospective approach and have elected an initial application date of January 1, 2019. Adoption of the New Lease Standard resulted in an increase to total assets and liabilities due to the recording of lease ROU assets and lease liabilities of approximately $225 million as of January 1, 2019. Our adoption of the New Lease Standard included modification of certain accounting policies and practices, business processes, systems and controls in order to support compliance with the requirements. We elected the package of three practical expedients for transition, which include the carry forward of our leases without reassessing whether any contracts are leases or contain leases, lease classification and initial direct costs. We elected the transition practical expedient to apply hindsight when determining the lease term and when assessing impairment of ROU assets at the adoption date, which allows us to update our assessments according to new information and changes in facts and circumstances that have occurred since lease inception. We have certain land easements that have historically been accounted for as finite-lived intangible assets. We elected the practical expedient related to land easements, allowing us to carry forward our accounting treatment for land easements on existing agreements as intangible assets. Any new or modified land easements will be accounted for as leases under the New Lease Standard. Presentation of Leases We have operating and finance leases for certain manufacturing facilities, offices, service and quick response centers, machinery, equipment and automobiles. Our leases have remaining lease terms of up to 34 years . The terms and conditions of our leases may include options to extend or terminate the lease which are considered and included in the lease term when these options are reasonably certain of exercise. We determine if a contract is (or contains) a lease at inception by evaluating whether the contract conveys the right to control the use of an identified asset. For all classes of leased assets, we have elected the practical expedient to account for any non-lease components in the contract together with the related lease component in the same unit of account. For lease contracts containing more than one lease component, we allocate the contract consideration to each of the lease components on the basis of relative standalone prices in order to identify the lease payments for each lease component. ROU assets and lease liabilities are recognized in our consolidated balance sheets at the commencement date based on the present value of remaining lease payments over the lease term. Additionally, ROU assets include any lease payments made at or before the commencement date, as well as any initial direct costs incurred, and are reduced by any lease incentives received. As most of our operating leases do not provide an implicit rate, we apply our incremental country-specific borrowing rate to determine the present value of remaining lease payments. Our incremental borrowing country-specific rate is determined based on information available at the commencement date of the lease. Operating leases are included in operating lease right-of-use assets, net and operating lease liabilities in our consolidated balance sheets. Finance leases are included in property plant and equipment, debt due within one year and long-term debt due after one year in our consolidated balance sheets. For all classes of leased assets, we have applied an accounting policy election to exclude short-term leases from recognition in our consolidated balance sheets. A short-term lease has a lease term of 12 months or less at the commencement date and does not include a purchase option that is reasonably certain of exercise. We recognize short-term lease expense in our consolidated income statements on a straight-line basis over the lease term. Our short-term lease expense and short-term lease commitments as of December 31, 2019 are immaterial. We have certain lease contracts with terms and conditions that provide for variability in the payment amount based on changes in facts or circumstances occurring after the commencement date. These variable lease payments are recognized in our consolidated income statements as the obligation is incurred. We have certain lease contracts where we provide a guarantee to the lessor that the value of an underlying asset will be at least a specified amount at the end of the lease. Estimated amounts expected to be paid for residual value guarantees are included in lease liabilities and ROU assets. As of December 31, 2019 , we had $34.7 million of legally binding minimum lease payments for operating leases signed but not yet commenced. We did not have material subleases, leases that imposed significant restrictions or covenants, material related party leases or sale-leaseback arrangements. Other information related to our leases is as follows: December 31, (Amounts in thousands) 2019 Operating Leases: ROU assets recorded under operating leases $ 220,865 Accumulated amortization associated with operating leases (34,647 ) Total operating leases ROU assets, net $ 186,218 Liabilities recorded under operating leases (current) $ 36,108 Liabilities recorded under operating leases (non-current) 151,523 Total operating leases liabilities $ 187,631 Finance Leases: ROU assets recorded under finance leases $ 19,606 Accumulated depreciation associated with finance leases (7,551 ) Total finance leases ROU assets, net(1) $ 12,055 Total finance leases liabilities(2) $ 11,788 The costs components of operating and finance leases are as follows: December 31, (Amounts in thousands) 2019 Operating Lease Costs: Fixed lease expense(3) $ 57,450 Variable lease expense(3) 6,492 Total operating lease expense $ 63,942 Finance Lease Costs: Depreciation of finance lease ROU assets(3) $ 4,729 Interest on lease liabilities(4) 352 Total finance lease expense $ 5,081 _____________________ (1) Included in property plant and equipment, net (2) Included in debt due within one year and long-term debt due after one year, accordingly (3) Included in cost of sales and selling, general and administrative expense, accordingly (4) Included in interest expense Supplemental cash flows information as of and for the year ended December 31, 2019 : (Amounts in thousands, except lease term and discount rate) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases(1) $ 64,725 Financing cash flows from finance leases(2) 4,465 ROU assets obtained in exchange for lease obligations: Operating leases $ 14,569 Finance leases 10,615 Weighted average remaining lease term (in years) Operating leases 9 years Finance leases 3 years Weighted average discount rate (percent) Operating leases 4.5 % Finance leases 3.6 % _____________________ (1) Included in our consolidated statement of cash flows, operating activities, prepaid expenses and other assets, net and retirement obligations and other (2) Included in our consolidated statement of cash flows, financing activities, payments under other financing arrangements Future undiscounted lease payments under operating and finance leases as of December 31, 2019 , were as follows (amounts in thousands): Year ending December 31, Operating Leases Finance Leases 2020 42,164 4,897 2021 32,762 3,660 2022 27,378 2,417 2023 23,120 1,101 2024 18,160 277 Thereafter 84,742 96 Total future minimum lease payments $ 228,326 $ 12,448 Less: Imputed interest (40,695 ) (660 ) Total $ 187,631 $ 11,788 Other current liabilities $ 36,108 $ — Operating lease liabilities 151,523 — Debt due within one year — 4,622 Long-term debt due after one year — 7,166 Total $ 187,631 $ 11,788 The future minimum lease payments as of December 31, 2018 were as follows (amounts in thousands): Year ending December 31, 2019 $ 68,443 2020 49,874 2021 38,446 2022 28,496 2023 21,473 Thereafter 66,518 Total future minimum lease payments $ 273,250 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | STOCK-BASED COMPENSATION PLANS During the year ended December 31, 2019, we maintained the Flowserve Corporation Equity and Incentive Compensation Plan (the "2010 Plan"), which is a shareholder-approved plan authorizing the issuance of up to 8,700,000 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 8,700,000 shares of common stock authorized under the 2010 Plan, 1,611,332 were available for issuance as of December 31, 2019 . In 2019, our shareholders approved the Flowserve Corporation 2020 Long-Term Incentive Plan (the “2020 Plan”), which became effective January 1, 2020 following the expiration of the 2010 Plan on December 31, 2019. This shareholder-approved plan authorizes the issuance of up to 12,500,000 shares of our common stock in the form of incentive stock options, non-statutory stock options, Restricted Shares, stock appreciation rights and bonus stock, in addition to any shares available for issuance or subject to forfeiture under the 2010 Plan as of its expiration on December 31, 2019. We plan to begin using the 2020 Plan in 2020 and it is intended to replace the 2010 Plan. The long-term incentive program allows Restricted Shares granted after January 1, 2016 to employees who retire and have achieved at least 55 years of age and ten years of service to continue to vest over the original vesting period ("55/10 Provision"). Stock Options — Options granted to officers, other employees and directors allow for the purchase of common shares at the market value of our stock on the date the options are granted. Options generally become exercisable after three years . Options generally expire ten years from the date of the grant or within a short period of time following the termination of employment or cessation of services by an option holder. As of December 31, 2019 , 114,943 stock options were outstanding, with a grant date fair value of $2.0 million , recognized over three years , with remaining unearned compensation of $0.3 million . No stock options vested during years ended December 31, 2019 , 2018 or 2017 . Information related to stock options issued to officers, other employees and directors under all plans is presented in the following table: 2019 2018 2017 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Number of shares under option: Outstanding — beginning of year 114,943 $ 48.63 114,943 $ 48.63 — $ — Granted — — — — 114,943 48.63 Exercised — — — — — — Canceled — — — — — — Outstanding — end of year 114,943 $ 48.63 114,943 $ 48.63 114,943 $ 48.63 Exercisable — end of year — $ — — $ — — $ — The weighted average remaining contractual life of options outstanding at December 31, 2019 and 2018 was 7.3 years and 8.3 years , respectively. Restricted Shares — Generally, the restrictions on Restricted Shares do not expire for a minimum of one year and a maximum of three years , and shares are subject to forfeiture during the restriction period. Most typically, Restricted Share grants have staggered vesting periods over one to three years from grant date. The intrinsic value of the Restricted Shares, which is typically the product of share price at the date of grant and the number of Restricted Shares granted, is amortized on a straight-line basis to compensation expense over the periods in which the restrictions lapse. 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 when granted. As of December 31, 2019 and 2018 , we had $23.4 million and $24.3 million , respectively, of unearned compensation cost related to unvested Restricted Shares, which is expected to be recognized over a weighted-average period of approximately one year . The total fair value of Restricted Shares vested during the years ended December 31, 2019 , 2018 and 2017 was $16.8 million , $14.3 million and $30.5 million , respectively. We recorded stock-based compensation for Restricted Shares as follows: Year Ended December 31, 2019 2018 2017 (Amounts in millions) Stock-based compensation expense $ 23.9 $ 19.9 $ 22.8 Related income tax benefit (5.4 ) (4.5 ) (5.2 ) Net stock-based compensation expense $ 18.5 $ 15.4 $ 17.6 The following table summarizes information regarding Restricted Shares: Year Ended December 31, 2019 Shares Weighted Average Grant-Date Fair Value Number of unvested Restricted Shares: Outstanding — beginning of year 1,530,214 $ 45.06 Granted 857,116 46.80 Vested (392,152 ) 42.82 Canceled (304,578 ) 43.66 Outstanding — ending of year 1,690,600 $ 46.71 Unvested Restricted Shares outstanding as of December 31, 2019 , includes approximately 647,000 units with performance-based vesting provisions. Performance-based units are issuable in common stock and vest upon the achievement of pre-defined performance targets. Performance-based units have performance targets based on our average return on invested capital and our total shareholder return ("TSR") over a three -year period. Most unvested units were granted in three annual grants since January 1, 2017 and have a vesting percentage between 0% and 200% depending on the achievement of the specific performance targets. Except for shares granted under the 55/10 Provision, 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, as 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 1,294,000 shares based on performance targets. As of December 31, 2019 , we estimate vesting of approximately 466,000 shares based on expected achievement of performance targets. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging Activities | DERIVATIVES AND HEDGING ACTIVITIES Our risk management and foreign currency derivatives and hedging policy specifies the conditions under which we may enter into derivative contracts. See Note 1 for additional information on our purpose for entering into derivatives and our overall risk management strategies. 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. Foreign exchange contracts had notional values of $398.5 million and $280.9 million at December 31, 2019 and 2018 , respectively. At December 31, 2019 , the length of foreign exchange contracts currently in place ranged from 17 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 forward exchange contracts and expect all counterparties to meet their obligations. We have not experienced credit losses from our counterparties. The fair values of foreign exchange contracts are summarized below: Year Ended December 31, 2019 2018 (Amounts in thousands) Current derivative assets $ 892 $ 535 Noncurrent derivative assets 15 5 Current derivative liabilities 3,418 3,285 Noncurrent derivative liabilities 8 2 Current and noncurrent derivative assets are reported in our consolidated balance sheets in prepaid expenses and other and other assets, net, respectively. Current and noncurrent derivative liabilities are reported in our 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 contracts are summarized below: Year Ended December 31, 2019 2018 2017 (Amounts in thousands) Gain (loss) recognized in income $ (6,495 ) $ (3,154 ) $ 2,122 Gains and losses recognized in our consolidated statements of income for foreign exchange contracts are classified as Other income (expense), net . In March 2015, we designated €255.7 million of our €500.0 million 2022 EUR Senior Notes discussed in Note 12 as a net investment hedge of our investments in certain of our international subsidiaries that use the Euro as their functional currency. We use the spot method to measure the effectiveness of our net investment hedge. Under this method, for each reporting period, the change in the carrying value of the Euro senior notes due to remeasurement of the effective portion is reported in accumulated other comprehensive loss on our consolidated balance sheet and the remaining change in the carrying value of the ineffective portion, if any, is recognized in Other income (expense), net in our consolidated statement of income. We evaluate the effectiveness of our net investment hedge on a prospective basis at the beginning of each quarter. We did not record any ineffectiveness for the years ended December 31, 2019 , 2018 or 2017 . |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS The fair value of our debt, excluding the Senior Notes (as described in Note 12), was estimated using interest rates on similar debt recently issued by companies with credit metrics similar to ours and is classified as Level II under the fair value hierarchy. The carrying value of our debt is included in Note 12 and, except for the Senior Notes, approximates fair value. The estimated fair value of the Senior Notes is based on Level I quoted market rates. The estimated fair value of our Senior Notes at December 31, 2019 was $1,381.2 million compared to the carrying value of $1,354.1 million . The carrying amounts of our other financial instruments (i.e., cash and cash equivalents, accounts receivable, net and accounts payable) approximated fair value due to their short-term nature at December 31, 2019 and December 31, 2018 . |
Details of Certain Consolidated
Details of Certain Consolidated Balance Sheet Captions | 12 Months Ended |
Dec. 31, 2019 | |
Details of Certain Consolidated Balance Sheet Captions [Abstract] | |
Details of Certain Consolidated Balance Sheet Captions | DETAILS OF CERTAIN CONSOLIDATED BALANCE SHEET CAPTIONS The following tables present financial information of certain consolidated balance sheet captions. Accounts Receivable, net — Accounts receivable, net were: December 31, 2019 2018 (Amounts in thousands) Accounts receivable $ 848,950 $ 843,935 Less: allowance for doubtful accounts (53,412 ) (51,501 ) Accounts receivable, net $ 795,538 $ 792,434 Property, Plant and Equipment, net — Property, plant and equipment, net were: December 31, 2019 2018 (Amounts in thousands) Land $ 64,778 $ 72,701 Buildings and improvements 419,454 441,006 Machinery, equipment and tooling 666,376 634,838 Software, furniture and fixtures and other 434,774 418,185 Gross property, plant and equipment 1,585,382 1,566,730 Less: accumulated depreciation (1,013,207 ) (956,634 ) Property, plant and equipment, net $ 572,175 $ 610,096 Accrued Liabilities — Accrued liabilities were: December 31, 2019 2018 (Amounts in thousands) Wages, compensation and other benefits $ 192,354 $ 198,311 Commissions and royalties 23,027 19,673 Warranty costs and late delivery penalties 30,625 31,683 Sales and use tax 18,146 14,486 Income tax 20,018 9,865 Other 117,215 117,388 Accrued liabilities $ 401,385 $ 391,406 "Other" accrued liabilities include professional fees, lease obligations, insurance, interest, freight, accrued cash dividends payable, legal and environmental matters, derivative liabilities, restructuring reserves and other items, none of which individually exceed 5% of current liabilities. Retirement Obligations and Other Liabilities — Retirement obligations and other liabilities were: December 31, 2019 2018 (Amounts in thousands) Pension and postretirement benefits $ 199,603 $ 183,012 Deferred taxes 163,084 159,404 Operating lease liabilities 151,523 — Legal and environmental 28,593 21,949 Uncertain tax positions and other tax liabilities 42,086 57,553 Other 39,929 37,775 Retirement obligations and other liabilities $ 624,818 $ 459,693 |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | EQUITY METHOD INVESTMENTS We occasionally enter into joint venture arrangements with local country partners as our preferred means of entry into countries where barriers to entry may exist. Similar to our consolidated subsidiaries, these unconsolidated joint ventures generally operate within our primary businesses of designing, manufacturing, assembling and distributing fluid motion and control products and services. We have agreements with certain of these joint ventures that restrict us from otherwise entering the respective market and certain joint ventures produce and/or sell our products as part of their broader product offering. Net earnings from investments in unconsolidated joint ventures is reported in net earnings from affiliates in our consolidated statements of income. Given the integrated role of the unconsolidated joint ventures in our business, net earnings from affiliates is presented as a component of operating income. As of December 31, 2019 , we had investments in six joint ventures, one located in each of Chile, China, India, Saudi Arabia, South Korea and the United Arab Emirates that were accounted for using the equity method and are immaterial for disclosure purposes. |
Debt and Finance Lease Obligati
Debt and Finance Lease Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Finance Lease Obligations | DEBT AND FINANCE LEASE OBLIGATIONS Debt, including finance lease obligations, consisted of: December 31, 2019 2018 (Amounts in thousands) 1.25% EUR Senior Notes due March 17, 2022, net of unamortized discount and debt issuance costs of $2,653 and $3,914 at December 31, 2019 and 2018, respectively $ 557,847 $ 569,536 3.50% USD Senior Notes due September 15, 2022, net of unamortized discount and debt issuance costs of $1,924 and $2,589 at December 31, 2019 and 2018, respectively 498,076 497,411 4.00% USD Senior Notes due November 15, 2023, net of unamortized discount and debt issuance costs of $1,777 and $2,192 at December 31, 2019 and 2018, respectively 298,223 297,808 Term Loan Facility, interest rate of 4.30% at December 31, 2018, net of debt issuance costs of $249 — 104,751 Finance lease obligations and other borrowings 23,103 13,541 Debt and finance lease obligations 1,377,249 1,483,047 Less amounts due within one year 11,272 68,218 Total debt due after one year $ 1,365,977 $ 1,414,829 Scheduled maturities of our Senior Notes and other debt, are (amounts in thousands): 2020 $ 11,272 2021 11,831 2022 1,055,923 2023 298,223 Total $ 1,377,249 Senior Notes On March 17, 2015, we completed a public offering of €500.0 million of Euro senior notes in aggregate principal amount due March 17, 2022 ("2022 EUR Senior Notes"). The 2022 EUR Senior Notes bear an interest rate of 1.25% per year, payable each year on March 17. The 2022 EUR Senior Notes were priced at 99.336% of par value, reflecting a discount to the aggregate principal amount. On November 1, 2013 we completed the public offering of $300.0 million in aggregate principal amount of senior notes due November 15, 2023 ("2023 Senior Notes"). The 2023 Senior Notes bear an interest rate of 4.00% per year, payable on May 15 and November 15 of each year. The 2023 Senior Notes were priced at 99.532% of par value, reflecting a discount to the aggregate principal amount. On September 11, 2012, we completed the public offering of $500.0 million in aggregate principal amount of senior notes due September 15, 2022 ("2022 Senior Notes"). The 2022 Senior Notes bear an interest rate of 3.50% per year, payable on March 15 and September 15 of each year. The 2022 Senior Notes were priced at 99.615% of par value, reflecting a discount to the aggregate principal amount. We have the right to redeem the 2022 Senior Notes and 2023 Senior Notes at any time prior to June 15, 2022 and August 15, 2023, respectively, in whole or in part, at our option, at a redemption price equal to the greater of: (1) 100% of the principal amount of the senior notes being redeemed; or (2) the sum of the present values of the remaining scheduled payments of principal and interest in respect of the Senior Notes being redeemed discounted to the redemption date on a semi-annual basis, at the applicable Treasury Rate plus 30 basis points for the 2022 Senior Notes and plus 25 basis points for the 2023 Senior Notes. In addition, at any time on or after June 15, 2022 for the 2022 Senior Notes and August 15, 2023 for the 2023 Senior Notes, we may redeem the Senior Notes at a redemption price equal to 100% of the principal amount of the Senior Notes being redeemed. In each case, we will also pay the accrued and unpaid interest on the principal amount being redeemed to the redemption date. Similarly, we have the right to redeem the 2022 EUR Senior Notes at any time prior to December 17, 2021, in whole or in part, at our option, at a redemption price equal to the greater of: (1) 100% of the principal amount of the senior notes being redeemed; or (2) the sum of the present values of the remaining scheduled payments of principal and interest in respect of the Senior Notes being redeemed (exclusive of interest accrued to, but excluding, the date of redemption) discounted to the redemption date on an annual basis, at the Comparable German Government Bond Rate plus 25 basis points. At any time on or after December 17, 2021, we may redeem the 2022 EUR Senior Notes, in whole or in part from time to time, at our option, at a redemption price equal to 100% of the principal amount of the notes to be redeemed. In each case, we will also pay the accrued and unpaid interest on the principal amount being redeemed to the redemption date. Senior Credit Facility On July 16, 2019, we entered into a new credit agreement ("Credit Agreement”) with Bank of America, N.A., as administrative agent, and the other lenders party thereto. The Credit Agreement provides for a $800.0 million unsecured senior credit facility with a maturity date of July 16, 2024 (“Senior Credit Facility”). The Senior Credit Facility includes a $750.0 million sublimit for the issuance of letters of credit and a $30.0 million sublimit for swing line loans. We have the right to increase the amount of the Senior Credit Facility by an aggregate amount not to exceed $400.0 million , subject to certain conditions, including each Lender's approval providing any increase. On July 16, 2019, approximately $75.0 million was borrowed under the Senior Credit Facility to repay all outstanding indebtedness under the previous senior credit facility. In connection with this repayment, our outstanding letters of credit under the previous senior credit facility were transferred to the Senior Credit Facility, and we terminated the previous senior credit facility. On September 16, 2019, the $75.0 million borrowed under the Senior Credit Facility was paid in full. T he interest rates per annum applicable to the Senior 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. or Standard & Poor’s Financial Services LLC ("S&P") Ratings, or, at our option, the Base Rate (as defined in the Senior Credit Agreement) plus between 0.000% to 0.750% depending on our debt rating by either Moody’s Investors Service, Inc. or S&P Global Ratings. As of December 31, 2019 , the interest rate on the Senior 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 Senior Credit Facility. The commitment fee will be between 0.090% and 0.300% of unused amounts under the Senior Credit Facility depending on our debt rating by either Moody’s Investors Service, Inc. or S&P’s Ratings. The commitment fee was 0.20% (per annum) during the period ended December 31, 2019 . As of December 31, 2019 , and December 31, 2018 , we had no revolving loans outstanding under the Senior Credit Facility. We had outstanding letters of credit of $88.5 million and $92.9 million at December 31, 2019 , and December 31, 2018 , respectively. The amount available for borrowings under our Senior Credit Facility was $711.5 million at December 31, 2019 . As of December 31, 2018, due to a financial covenant in the previous senior credit facility, the amount available for borrowings under that facility was effectively limited to $513.7 million . Repayment of Obligations — During the year ended December 31, 2019 , we paid the $105.0 million outstanding principal balance on our previous senior credit facility, including $30.0 million of scheduled principal repayments. During both 2018 and 2017 , we paid $60.0 million of scheduled principal repayments on the previous senior credit facility. Financial Covenants — Our compliance with the financial covenants under the Senior Notes and Senior Credit Facility are tested quarterly. We were in compliance with all covenants as of December 31, 2019 . |
Pension and Postretirement Bene
Pension and Postretirement Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Postretirement Benefits | PENSION AND POSTRETIREMENT BENEFITS We sponsor several noncontributory defined benefit pension plans, covering substantially all U.S. employees and certain non-U.S. employees, which provide benefits based on years of service, age, job grade levels and type of compensation. Retirement benefits for all other covered employees are provided through contributory pension plans, cash balance pension plans and government-sponsored retirement programs. All funded defined benefit pension plans receive funding based on independent actuarial valuations to provide for current service and an amount sufficient to amortize unfunded prior service over periods not to exceed 30 years, with funding falling within the legal limits prescribed by prevailing regulation. We also maintain unfunded defined benefit plans that, as permitted by local regulations, receive funding only when benefits become due. Our defined benefit plan strategy is to ensure that current and future benefit obligations are adequately funded in a cost-effective manner. Additionally, our investing objective is to achieve the highest level of investment performance that is compatible with our risk tolerance and prudent investment practices. Because of the long-term nature of our defined benefit plan liabilities, our funding strategy is based on a long-term perspective for formulating and implementing investment policies and evaluating their investment performance. The asset allocation of our defined benefit plans reflects our decision about the proportion of the investment in equity and fixed income securities, and, where appropriate, the various sub-asset classes of each. At least annually, we complete a comprehensive review of our asset allocation policy and the underlying assumptions, which includes our long-term capital markets rate of return assumptions and our risk tolerances relative to our defined benefit plan liabilities. The expected rates of return on defined benefit plan assets are derived from review of the asset allocation strategy, expected long-term performance of asset classes, risks and other factors adjusted for our specific investment strategy. These rates are impacted by changes in general market conditions, but because they are long-term in nature, short-term market changes do not significantly impact the rates. Our U.S. defined benefit plan assets consist of a balanced portfolio of equity and fixed income securities. Our non-U.S. defined benefit plan assets include a significant concentration of United Kingdom ("U.K.") fixed income securities . We monitor investment allocations and manage plan assets to maintain acceptable levels of risk. For all periods presented, we used a measurement date of December 31 for each of our U.S. pension plans, non-U.S. pension plans and postretirement medical plans . U.S. Defined Benefit Plans We maintain qualified and non-qualified defined benefit pension plans in the U.S. The qualified plan provides coverage for substantially all full-time U.S. employees who receive benefits, up to an earnings threshold specified by the U.S. Department of Labor. The non-qualified plans primarily cover a small number of employees including current and former members of senior management, providing them with benefit levels equivalent to other participants, but that are otherwise limited by U.S. Department of Labor rules. The U.S. plans are designed to operate as "cash balance" arrangements, under which the employee has the option to take a lump sum payment at the end of their service. The difference between total accumulated benefit obligation and total projected benefit obligation ("Benefit Obligation") is immaterial. The following are assumptions related to the U.S. defined benefit pension plans: Year Ended December 31, 2019 2018 2017 Weighted average assumptions used to determine Benefit Obligations: Discount rate 3.41 % 4.34 % 3.63 % Rate of increase in compensation levels 3.50 3.50 4.01 Weighted average assumptions used to determine net pension expense: Long-term rate of return on assets 6.00 % 6.00 % 6.00 % Discount rate 4.34 3.63 4.00 Rate of increase in compensation levels 3.50 4.01 4.01 At December 31, 2019 as compared with December 31, 2018 , we decreased our discount rate from 4.34% to 3.41% based on an analysis of publicly-traded investment grade U.S. corporate bonds, which had a lower yield due to current market conditions. In determining 2019 expense, the expected rate of return on U.S. plan assets remained constant at 6.00% , primarily based on our target allocations and expected long-term asset returns. The long-term rate of return assumption is calculated using a quantitative approach that utilizes unadjusted historical returns and asset allocation as inputs for the calculation. For all U.S. plans, we adopted the Pri-2012 mortality tables and the MP-2019 improvement scale published in October 2019. We applied the Pri-2012 tables based on the constituency of our plan population for union and non-union participants. We adjusted the improvement scale to utilize 75% of the ultimate improvement rate, consistent with assumptions adopted by the Social Security Administration trustees, based on long-term historical experience. Currently, we believe this approach provides the best estimate of our future obligation. Most plan participants elect to receive plan benefits as a lump sum at the end of service, rather than an annuity. As such, the updated mortality tables had an immaterial effect on our pension obligation. Net pension expense for the U.S. defined benefit pension plans (including both qualified and non-qualified plans) was: Year Ended December 31, 2019 2018 2017 (Amounts in thousands) Service cost $ 23,245 $ 22,195 $ 22,257 Interest cost 17,584 15,789 16,878 Expected return on plan assets (25,645 ) (25,704 ) (24,505 ) Settlement gain — (462 ) (216 ) Amortization of unrecognized prior service cost 164 164 112 Amortization of unrecognized net loss 3,675 5,514 6,021 U.S. net pension expense $ 19,023 $ 17,496 $ 20,547 The estimated prior service cost and the estimated net loss for the U.S. defined benefit pension plans that will be amortized from accumulated other comprehensive loss into pension expense in 2020 is $0.2 million and $6.6 million , respectively. We amortize estimated prior service costs and estimated net losses over the remaining expected service period. The following summarizes the net pension (liability) asset for U.S. plans: December 31, 2019 2018 (Amounts in thousands) Plan assets, at fair value $ 482,553 $ 425,792 Benefit Obligation (471,462 ) (432,595 ) Funded status $ 11,091 $ (6,803 ) The following summarizes amounts recognized in the balance sheet for U.S. plans: December 31, 2019 2018 (Amounts in thousands) Noncurrent assets $ 16,396 $ — Current liabilities (348 ) (232 ) Noncurrent liabilities (4,957 ) (6,571 ) Funded status $ 11,091 $ (6,803 ) The following is a summary of the changes in the U.S. defined benefit plans’ pension obligations: December 31, 2019 2018 (Amounts in thousands) Balance — January 1 $ 432,595 $ 461,355 Service cost 23,245 22,195 Interest cost 17,584 15,789 Plan amendments and settlements 276 (3,016 ) Actuarial loss (gain) (1) 31,214 (25,908 ) Benefits paid (33,452 ) (37,820 ) Balance — December 31 $ 471,462 $ 432,595 Accumulated benefit obligations at December 31 $ 470,643 $ 431,973 _______________________________________ (1) The actuarial losses (gain) in 2019 and 2018 primarily reflect the impact of changes in the discount rate. The following table summarizes the expected cash benefit payments for the U.S. defined benefit pension plans in the future (amounts in millions): 2020 $ 42.8 2021 44.0 2022 41.9 2023 42.9 2024 42.1 2025-2029 196.8 The following table shows the change in accumulated other comprehensive loss attributable to the components of the net cost and the change in Benefit Obligations for U.S. plans, net of tax: December 31, 2019 2018 (Amounts in thousands) Balance — January 1 $ (62,018 ) $ (49,790 ) Amortization of net loss 2,809 4,216 Amortization of prior service cost 125 125 Net gain (loss) arising during the year 9,785 (16,216 ) Settlement gain — (353 ) Prior service cost arising during the year (211 ) — Balance — December 31 $ (49,510 ) $ (62,018 ) Amounts recorded in accumulated other comprehensive loss consist of: December 31, 2019 2018 (Amounts in thousands) Unrecognized net loss $ (48,578 ) $ (61,129 ) Unrecognized prior service cost (932 ) (889 ) Accumulated other comprehensive loss, net of tax $ (49,510 ) $ (62,018 ) The following is a reconciliation of the U.S. defined benefit pension plans’ assets: December 31, 2019 2018 (Amounts in thousands) Balance — January 1 $ 425,792 $ 464,779 Return on plan assets 69,663 (21,414 ) Company contributions 20,552 23,263 Benefits paid (33,454 ) (37,820 ) Settlements — (3,016 ) Balance — December 31 $ 482,553 $ 425,792 We contributed $20.6 million and $23.3 million to the U.S. defined benefit pension plans during 2019 and 2018 , respectively. These payments exceeded the minimum funding requirements mandated by the U.S. Department of Labor rules. Our estimated contribution in 2020 is expected to be approximately $20 million , excluding direct benefits paid. All U.S. defined benefit plan assets are held by the qualified plan. The asset allocations for the qualified plan at the end of 2019 and 2018 by asset category, are as follows: Target Allocation at December 31, Percentage of Actual Plan Assets at December 31, Asset category 2019 2018 2019 2018 Cash and cash equivalents — % — % 1 % 1 % Cash and cash equivalents — % — % 1 % 1 % Global Equity 31 % 30 % 28 % 30 % Global Real Assets 12 % 13 % 12 % 13 % Equity securities 43 % 43 % 40 % 43 % Diversified Credit 12 % 12 % 12 % 13 % Liability-Driven Investment 45 % 45 % 47 % 43 % Fixed income 57 % 57 % 59 % 56 % None of our common stock is directly held by our qualified plan. Our investment strategy is to earn a long-term rate of return consistent with an acceptable degree of risk and minimize our cash contributions over the life of the plan, while taking into account the liquidity needs of the plan. We preserve capital through diversified investments in high quality securities. Our current allocation target is to invest approximately 43% of plan assets in equity securities and 57% in fixed income securities. Within each investment category, assets are allocated to various investment strategies. Professional money management firms manage our assets, and we engage a consultant to assist in evaluating these activities. We periodically review the allocation target, generally in conjunction with an asset and liability study and in consideration of our future cash flow needs. We regularly rebalance the actual allocation to our target investment allocation. Plan assets are invested in commingled funds. Our "Pension and Investment Committee" is responsible for setting the investment strategy and the target asset allocation for the plan's assets. As the qualified plan approached fully funded status, we implemented a Liability-Driven Investing ("LDI") strategy, which more closely aligns the duration of the plan's assets with the duration of its liabilities. The LDI strategy results in an asset portfolio that more closely matches the behavior of the liability, thereby reducing the volatility of the plan's funded status. The plan’s financial instruments, shown below, are presented at fair value. See Note 1 for further discussion on how the hierarchical levels of the fair values of the Plan’s investments are determined. The fair values of our U.S. defined benefit plan assets were: At December 31, 2019 At December 31, 2018 Hierarchical Levels Hierarchical Levels Total I II III Total I II III (Amounts in thousands) (Amounts in thousands) Cash and cash equivalents $ 4,994 $ 4,994 $ — $ — $ 4,778 $ 4,778 $ — $ — Commingled Funds: Equity securities Global Equity(a) 135,350 — 135,350 — 126,165 — 126,165 — Global Real Assets(b) 60,523 — 60,523 — 55,046 — 55,046 — Fixed income securities Diversified Credit(c) 56,375 — 56,375 — 55,039 — 55,039 — Liability-Driven Investment(d) 225,311 — 225,311 — 184,764 — 184,764 — $ 482,553 $ 4,994 $ 477,559 $ — $ 425,792 $ 4,778 $ 421,014 $ — _______________________________________ (a) Global Equity fund seeks to closely track the performance of the MSCI All Country World Index. (b) Global Real Asset funds seek to provide exposure to the listed global real estate investment trusts (REITs) and infrastructure markets. (c) Diversified Credit funds seek to provide exposure to the high yield, emerging markets, bank loans and securitized credit markets. (d) Liability-Driven Investment ("LDI") funds seek to invest in high quality fixed income securities that collectively closely match those found in discount curves used to value the plan's liabilities. Non-U.S. Defined Benefit Plans We maintain defined benefit pension plans, which cover some or all of our employees in the following countries: Austria, Belgium, Canada, France, Germany, India, Italy, Japan, Mexico, The Netherlands, Sweden, Switzerland and the U.K. The assets of the plans in the U.K. ( two plans), The Netherlands and Canada represent 94% of the total non-U.S. plan assets ("non-U.S. assets"). Details of other countries’ plan assets have not been provided due to immateriality. The following are assumptions related to the non-U.S. defined benefit pension plans: Year Ended December 31, 2019 2018 2017 Weighted average assumptions used to determine Benefit Obligations: Discount rate 1.61 % 2.42 % 2.25 % Rate of increase in compensation levels 3.12 3.28 3.25 Weighted average assumptions used to determine net pension expense: Long-term rate of return on assets 3.37 % 3.62 % 3.88 % Discount rate 2.42 2.25 2.34 Rate of increase in compensation levels 3.28 3.25 3.22 At December 31, 2019 , as compared with December 31, 2018 , we decreased our average discount rate for non-U.S. plans from 2.42% to 1.61% based on analysis of bonds and other publicly-traded instruments, by country, which had lower yields due to market conditions . To determine 2019 pension expense, we decreased our average expected rate of return on plan assets from 3.62% at December 31, 2018 to 3.37% at December 31, 2019 , primarily based on our target allocations and expected long-term asset returns. As the expected rate of return on plan assets is long-term in nature, short-term market fluctuations do not significantly impact the rate. Many of our non-U.S. defined benefit plans are unfunded, as permitted by local regulation. The expected long-term rate of return on assets for funded plans was determined by assessing the rates of return for each asset class and is calculated using a quantitative approach that utilizes unadjusted historical returns and asset allocation as inputs for the calculation. We work with our actuaries to determine the reasonableness of our long-term rate of return assumptions by looking at several factors including historical returns, expected future returns, asset allocation, risks by asset class and other items. Net pension expense for non-U.S. defined benefit pension plans was: Year Ended December 31, 2019 2018 2017 (Amounts in thousands) Service cost $ 5,728 $ 7,208 $ 7,247 Interest cost 8,867 8,970 9,320 Expected return on plan assets (7,535 ) (8,747 ) (8,834 ) Amortization of unrecognized net loss 2,933 3,626 3,741 Amortization of unrecognized prior service cost (benefit) 265 33 (4 ) Settlement loss (gain) and other 859 (521 ) 2,434 Non-U.S. net pension expense $ 11,117 $ 10,569 $ 13,904 The estimated net loss and prior service cost for the non-U.S. defined benefit pension plans that will be amortized from accumulated other comprehensive loss into pension expense in 2020 is $4.3 million and $0.3 million , respectively. We amortize estimated net losses over the remaining expected service period or over the remaining expected lifetime of inactive participants for plans with only inactive participants. The following summarizes the net pension liability for non-U.S. plans: December 31, 2019 2018 (Amounts in thousands) Plan assets, at fair value $ 262,559 $ 232,175 Benefit Obligation (425,617 ) (376,649 ) Funded status $ (163,058 ) $ (144,474 ) The following summarizes amounts recognized in the balance sheet for non-U.S. plans: December 31, 2019 2018 \ (Amounts in thousands) Noncurrent assets $ 16,379 $ 17,864 Current liabilities (7,609 ) (7,782 ) Noncurrent liabilities (171,828 ) (154,556 ) Funded status $ (163,058 ) $ (144,474 ) The following is a reconciliation of the non-U.S. plans’ defined benefit pension obligations: December 31, 2019 2018 (Amounts in thousands) Balance — January 1 $ 376,649 $ 413,960 Service cost 5,728 7,208 Interest cost 8,867 8,970 Employee contributions 78 238 Settlements and other (3,713 ) (7,896 ) Actuarial loss (gain)(1) 48,888 (8,839 ) Net benefits and expenses paid (14,526 ) (16,632 ) Currency translation impact(2) 3,646 (20,360 ) Balance — December 31 $ 425,617 $ 376,649 Accumulated benefit obligations at December 31 $ 404,035 $ 356,989 _______________________________________ (1) The 2019 actuarial loss primarily reflects the decrease in the discount rates for all plans. (2) In 2019, the currency translation loss reflects the weakening of the U.S. dollar against the British pound, partially offset by the strengthening of the U.S. dollar against the Euro, while in 2018 the currency translation gain reflected the strengthening of the U.S. dollar against our significant currencies, primarily the Euro and British pound. The following table summarizes the expected cash benefit payments for the non-U.S. defined benefit plans in the future (amounts in millions): 2020 $ 16.5 2021 17.0 2022 17.8 2023 17.9 2024 18.7 2025-2029 97.3 The following table shows the change in accumulated other comprehensive loss attributable to the components of the net cost and the change in Benefit Obligations for non-U.S. plans, net of tax: December 31, 2019 2018 (Amounts in thousands) Balance — January 1 $ (62,088 ) $ (67,872 ) Amortization of net loss 2,946 3,260 Net (loss) gain arising during the year (29,910 ) 2,458 Settlement loss (gain) 746 (386 ) Prior service cost arising during the year — (3,080 ) Currency translation impact and other (1,031 ) 3,532 Balance — December 31 $ (89,337 ) $ (62,088 ) Amounts recorded in accumulated other comprehensive loss consist of: December 31, 2019 2018 (Amounts in thousands) Unrecognized net loss $ (85,891 ) $ (58,697 ) Unrecognized prior service cost (3,446 ) (3,391 ) Accumulated other comprehensive loss, net of tax $ (89,337 ) $ (62,088 ) The following is a reconciliation of the non-U.S. plans’ defined benefit pension assets: December 31, 2019 2018 (Amounts in thousands) Balance — January 1 $ 232,175 $ 248,733 Return (loss) on plan assets 23,793 (580 ) Employee contributions 78 238 Company contributions 16,782 21,696 Settlements (3,688 ) (7,776 ) Currency translation impact and other 7,945 (13,504 ) Net benefits and expenses paid (14,526 ) (16,632 ) Balance — December 31 $ 262,559 $ 232,175 Our contributions to non-U.S. defined benefit pension plans in 2020 are expected to be approximately $2 million , excluding direct benefits paid. The asset allocations for the non-U.S. defined benefit pension plans at the end of 2019 and 2018 are as follows: Target Allocation at December 31, Percentage of Actual Plan Assets at December 31, Asset category 2019 2018 2019 2018 Cash and cash equivalents 2 % 7 % 2 % 7 % Cash and cash equivalents 2 % 7 % 2 % 7 % North American Companies 1 % 3 % 1 % 3 % Global Equity 1 % 2 % 1 % 2 % Equity securities 2 % 5 % 2 % 5 % U.K. Government Gilt Index 43 % 43 % 43 % 43 % Global Fixed Income Bond — % 2 % — % 2 % Liability-Driven Investment 7 % 9 % 7 % 9 % Fixed income 50 % 54 % 50 % 54 % Multi-asset 19 % 19 % 19 % 19 % Buy-in Contracts 21 % 10 % 21 % 10 % Other 6 % 5 % 6 % 5 % Other types 46 % 34 % 46 % 34 % None of our common stock is held directly by these plans. In all cases, our investment strategy for these plans is to earn a long-term rate of return consistent with an acceptable degree of risk and minimize our cash contributions over the life of the plan, while taking into account the liquidity needs of the plan and the legal requirements of the particular country. We preserve capital through diversified investments in high quality securities. Asset allocation differs by plan based upon the plan’s benefit obligation to participants, as well as the results of asset and liability studies that are conducted for each plan and in consideration of our future cash flow needs. Professional money management firms manage plan assets and we engage a consultant in the U.K. to assist in evaluation of these activities. The assets of the U.K. plans are overseen by a group of Trustees who review the investment strategy, asset allocation and fund selection. These assets are passively managed as they are invested in index funds that attempt to match the performance of the specified benchmark index. The fair values of the non-U.S. assets were: At December 31, 2019 At December 31, 2018 Hierarchical Levels Hierarchical Levels Total I II III Total I II III (Amounts in thousands) (Amounts in thousands) Cash $ 5,026 $ 5,026 $ — — $ 15,105 $ 15,105 $ — $ — Commingled Funds: Equity securities North American Companies(a) 2,501 — 2,501 — 6,603 — 6,603 — Global Equity(b) 2,411 — 2,411 — 4,648 — 4,648 — Fixed income securities U.K. Government Gilt Index(c) 113,855 — 113,855 — 99,482 — 99,482 — U.K. Corporate Bond Index — — — — 1,192 — 1,192 — Global Fixed Income Bond — — — — 4,110 — 4,110 — Liability-Driven Investment(d) 20,011 — 20,011 — 20,004 — 20,004 — Other Types of Investments: Multi-asset(e) 48,964 — 48,964 — 44,147 — 44,147 — Buy-in Contracts(f) 54,544 — — 54,544 23,616 — — 23,616 Other(g) 15,247 — — 15,247 13,268 — — 13,268 $ 262,559 $ 5,026 $ 187,742 $ 69,791 $ 232,175 $ 15,105 $ 180,186 $ 36,884 _______________________________________ (a) North American Companies represents U.S. and Canadian large cap equity funds, which are managed to track their respective benchmarks (FTSE All-World USA Index and FTSE All-World Canada Index). (b) Global Equity represents actively managed global equity funds, taking a top-down strategic view on the different regions by analyzing companies based on fundamentals, market-driven, thematic and quantitative factors to generate alpha. (c) U.K. Government Gilt Index represents U.K. government issued fixed income investments which are passively managed to track their respective benchmarks. (d) LDI seeks to invest in fixed income securities that collectively closely match those found in discount curves used to value the plan's liabilities. (e) Multi-asset seeks an attractive risk-adjusted return by investing in a diversified portfolio of strategies, including equities and fixed income. (f) The Buy-in Contracts ("Contract" or "Contracts") represent assets held by plans, whereby the cost of providing benefits to plan participants is funded by the Contract. The Contracts are held by the plans for the benefit of plan participants in the Netherlands and U.K. The fair value of these assets are based on the current present value of accrued benefits and will fluctuate based on changes in the obligations associated with covered plan members as well as the assumptions used in the present value calculation. The fair value of asset held in the Netherlands Contract as of January 1, 2019 was $23.6 million , with contributions and currency adjustments resulting in a fair value of $25.9 million at December 31, 2019 . On August 29, 2019, we established a Contract for our U.K. plan participants with initial investment of $27.4 million , with contributions and currency adjustments resulting in a fair value of $28.6 million at December 31, 2019. (g) Includes assets held by plans outside the United Kingdom, the Netherlands and Canada. Details have not been provided due to immateriality. Defined Benefit Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets The following summarizes key pension plan information regarding U.S. and non-U.S. plans whose accumulated benefit obligations exceed the fair value of their respective plan assets. December 31, 2019 2018 (Amounts in thousands) Benefit Obligation $ 229,793 $ 613,441 Accumulated benefit obligation 212,906 596,584 Fair value of plan assets 46,718 444,929 Postretirement Medical Plans We sponsor several defined benefit postretirement medical plans covering certain current retirees and a limited number of future retirees in the U.S. These plans provide for medical and dental benefits and are administered through insurance companies and health maintenance organizations. The plans include participant contributions, deductibles, co-insurance provisions and other limitations and are integrated with Medicare and other group plans. We fund the plans as benefits and health maintenance organization premiums are paid, such that the plans hold no assets in any period presented. Accordingly, we have no investment strategy or targeted allocations for plan assets. Benefits under our postretirement medical plans are not available to new employees or most existing employees. The following are assumptions related to postretirement benefits: Year Ended December 31, 2019 2018 2017 Weighted average assumptions used to determine Benefit Obligation: Discount rate 3.27 % 4.20 % 3.48 % Weighted average assumptions used to determine net expense: Discount rate 4.20 % 3.48 % 3.75 % The assumed ranges for the annual rates of increase in medical costs used to determine net expense were 7.5% for 2019 , 7.0% for 2018 and 7% for 2017 , with a gradual decrease to 5.0% for 2029 and future years. At December 31, 2019 , a one-percentage point change in assumed medical cost trend rates would not have a material effect on reported amounts. Net postretirement benefit cost for postretirement medical plans was: Year Ended December 31, 2019 2018 2017 (Amounts in thousands) Interest cost $ 754 $ 779 $ 919 Amortization of unrecognized prior service cost 122 122 122 Amortization of unrecognized net gain (215 ) (764 ) (275 ) Net postretirement benefit expense $ 661 $ 137 $ 766 The estimated actuarial net gain and the estimated prior service cost for the defined benefit postretirement medical plans that are expected to be amortized from accumulated other comprehensive loss into net pension expense in 2020 are immaterial . The following summarizes the accrued postretirement benefits liability for the postretirement medical plans: December 31, 2019 2018 (Amounts in thousands) Postretirement Benefit Obligation $ 18,862 $ 18,810 Funded status $ (18,862 ) $ (18,810 ) The following summarizes amounts recognized in the balance sheet for postretirement Benefit Obligation: December 31, 2019 2018 (Amounts in thousands) Current liabilities $ (2,370 ) $ (2,500 ) Noncurrent liabilities (16,492 ) (16,310 ) Funded status $ (18,862 ) $ (18,810 ) The following is a reconciliation of the postretirement Benefit Obligation: December 31, 2019 2018 (Amounts in thousands) Balance — January 1 $ 18,810 $ 23,882 Interest cost 754 779 Employee contributions 964 883 Medicare subsidies receivable 14 127 Actuarial loss (gain) 2,222 (2,662 ) Net benefits and expenses paid (3,902 ) (4,199 ) Balance — December 31 $ 18,862 $ 18,810 The following presents expected benefit payments for future periods (amounts in millions): Expected Payments 2020 $ 2.4 2021 2.3 2022 2.1 2023 1.9 2024 1.7 2025-2029 6.6 The following table shows the change in accumulated other comprehensive loss attributable to the components of the net cost and the change in Benefit Obligations for postretirement benefits, net of tax: 2019 2018 (Amounts in thousands) Balance — January 1 $ 2,425 $ 880 Amortization of net gain (164 ) (584 ) Amortization of prior service cost 94 93 Net (loss) gain arising during the year (1,699 ) 2,036 Balance — December 31 $ 656 $ 2,425 Amounts recorded in accumulated other comprehensive loss consist of: December 31, 2019 2018 (Amounts in thousands) Unrecognized net gain $ 1,512 $ 3,365 Unrecognized prior service cost (856 ) (940 ) Accumulated other comprehensive income, net of tax $ 656 $ 2,425 We made contributions to the postretirement medical plans to pay benefits of $2.9 million in 2019 , $3.2 million in 2018 and $2.5 million in 2017 . Because the postretirement medical plans are unfunded, we make contributions as the covered individuals’ claims are approved for payment. Accordingly, contributions during any period are directly correlated to the benefits paid. Defined Contribution Plans We sponsor several defined contribution plans covering substantially all U.S. and Canadian employees and certain other non-U.S. employees. Employees may contribute to these plans, and these contributions are matched in varying amounts by us, including opportunities for discretionary matching contributions by us. Defined contribution plan expense was $20.4 million in 2019 , $18.7 million in 2018 and $17.7 million in 2017 . |
Legal Matters and Contingencies
Legal Matters and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
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. While the overall number of asbestos-related claims has generally declined in recent years, there can be no assurance that this trend will continue, or that the average cost per claim 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 any 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. 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. Accordingly, we have recorded a liability for our estimate of the most likely settlement of asserted claims and a related receivable from insurers or other companies for our estimated recovery, to the extent we believe that the amounts of recovery are probable. While unfavorable rulings, judgments or settlement terms regarding these claims could have a material adverse impact on our business, financial condition, results of operations and cash flows, 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. We are currently unable to estimate the impact, if any, of unasserted asbestos-related claims, although we expect that future claims would also be subject to then existing indemnities and insurance coverage. Other We are currently involved as a potentially responsible party at five former public waste disposal sites in various stages of evaluation or remediation. The projected cost of remediation at these sites, as well as our alleged "fair share" allocation, will remain uncertain until all studies have been completed and the parties have either negotiated an amicable resolution or the matter has been judicially resolved. At each site, there are many other parties who have similarly been identified. Many of the other parties identified are financially strong and solvent companies that appear able to pay their share of the remediation costs. Based on our information about the waste disposal practices at these sites and the environmental regulatory process in general, we believe that it is likely that ultimate remediation liability costs for each site will be apportioned among all liable parties, including site owners and waste transporters, according to the volumes and/or toxicity of the wastes shown to have been disposed of at the sites. We believe that our financial exposure for existing disposal sites will not be materially in excess of accrued reserves. 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 appropr iate. |
Warranty Reserve
Warranty Reserve | 12 Months Ended |
Dec. 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
Warranty Reserve | WARRANTY RESERVE We have recorded reserves for product warranty claims that are included in current liabilities. The following is a summary of the activity in the warranty reserve: 2019 2018 2017 (Amounts in thousands) Balance — January 1 $ 32,033 $ 33,601 $ 30,459 Accruals for warranty expense, net of adjustments 26,215 28,454 35,001 Settlements made (27,394 ) (30,022 ) (31,859 ) Balance — December 31 $ 30,854 $ 32,033 $ 33,601 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
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. Dividends per share were $0.76 for the years ending December 31, 2019 , 2018 and 2017 . Share Repurchase Program – 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. We repurchased 324,889 shares of our outstanding common stock for $15.0 million during the year ended December 31, 2019 . We had no repurchases of shares of our outstanding common stock for the years ended December 31, 2018 and 2017 . As of December 31, 2019 , we have $145.7 million |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act of 2017 (the “ Tax Reform Act ”), which significantly changed U.S. tax law. The Tax Reform Act , among other things, lowered our U.S. statutory federal income tax rate from 35% to 21% effective January 1, 2018, while imposing a deemed repatriation tax on deferred foreign income and implementing a modified territorial tax system. The Tax Reform Act also provides for a one-time transition tax (“Transition Tax”) on certain foreign earnings as well as prospective changes which began in 2018, including repeal of the domestic manufacturing deduction, capitalization of research and development expenditures, additional limitations on executive compensation and limitations on the deductibility of interest. We recognized provisional income tax effects of the Tax Reform Act in our previously issued financial statements in accordance with Staff Accounting Bulletin ("SAB") No. 118, which provides SEC staff guidance for the application of ASC Topic 740, Income Taxes with respect to recording certain tax impacts of the Tax Reform Act . We finalized our accounting for the income tax effects of the Tax Reform Act in the fourth quarter of 2018 with no material adjustments to previously recorded provisional amounts. The impacts of these changes are reflected in the 2018 tax benefit of $5.7 million and the 2017 provisional tax expense of $115.3 million . The provision for income taxes consists of the following: Year Ended December 31, 2019 2018 2017 (Amounts in thousands) Current: U.S. federal $ 22,001 $ 5,150 $ 59,292 Foreign 61,976 36,897 22,442 State and local 4,506 2,647 5,537 Total current 88,483 44,694 87,271 Deferred: U.S. federal 2,933 11,242 135,294 Foreign (12,243 ) (4,585 ) 34,626 State and local 897 (127 ) 1,488 Total deferred (8,413 ) 6,530 171,408 Total provision $ 80,070 $ 51,224 $ 258,679 The provision for income taxes differs from the statutory corporate rate due to the following: Year Ended December 31, 2019 2018 2017 (Amounts in millions) Statutory federal income tax at 21% (21% for 2018 and 35% for 2017) $ 71.8 $ 37.0 $ 92.1 Foreign impact, net 4.5 (5.9 ) (36.4 ) Impact of U.S. Tax Reform Act — (5.7 ) 115.3 Change in valuation allowances 0.3 15.7 73.6 State and local income taxes, net 5.4 3.7 4.9 Other, net (1.9 ) 6.4 9.2 Total $ 80.1 $ 51.2 $ 258.7 Effective tax rate 23.4 % 29.1 % 98.4 % The 2017 tax rate differed from the federal statutory rate of 35% primarily due to the impacts pursuant to enactment of the Tax Reform Act , the net impact of foreign operations, the establishment of a valuation allowance against our deferred tax assets in various foreign jurisdictions, primarily Germany and Mexico, and taxes related to the sale of the Gestra and Vogt businesses. For the year ended December 31, 2017, we did not assert permanent reinvestment on any of our foreign subsidiaries and as a result recorded deferred tax liabilities of approximately $75.4 million on cumulative unrepatriated earnings in connection with the Tax Reform Act. These deferred tax liabilities primarily relate to foreign withholding taxes that would be due upon repatriation of the designated earnings to the U.S. For the years ended December 31, 2019 and December 31, 2018, we have asserted permanent reinvestment on certain earnings of our foreign subsidiaries. As of December 31, 2019, we have recorded $67.9 million of deferred tax liabilities associated with the pre-December 31, 2017 earnings deemed available for repatriation as referenced above. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the consolidated deferred tax assets and liabilities were: December 31, 2019 2018 (Amounts in thousands) Deferred tax assets related to: Retirement benefits $ 25,214 $ 26,496 Net operating loss carryforwards 101,193 92,630 Compensation accruals 24,685 25,993 Inventories 33,773 25,553 Credit and capital loss carryforwards 131,744 16,056 Warranty and accrued liabilities 7,042 2,763 Bad debt reserve 30,884 28,194 Other 25,339 32,253 Total deferred tax assets 379,874 249,938 Valuation allowances (266,414 ) (133,929 ) Net deferred tax assets 113,460 116,009 Deferred tax liabilities related to: Property, plant and equipment (26,545 ) (18,773 ) Goodwill and intangibles (114,567 ) (123,692 ) Foreign undistributed earnings taxes (67,930 ) (70,331 ) Other (12,623 ) (17,935 ) Total deferred tax liabilities (221,665 ) (230,731 ) Deferred tax liabilities, net $ (108,205 ) $ (114,722 ) We have $417.3 million of U.S. and foreign net operating loss carryforwards at December 31, 2019 . Of this total, $38.0 million are state net operating losses. Net operating losses generated in the U.S., if unused, will expire in 2024 through 2026 tax years. The majority of our foreign net operating losses carry forward without expiration. Additionally, we have $29.1 million of foreign tax credit carryforwards at December 31, 2019. The foreign tax credit carryforwards, if unused, will expire in 2026, 2028 and 2029 tax years. Our valuation allowances primarily relate to the deferred tax assets established for U.S. foreign tax credit carryforwards of $29.1 million , a foreign capital loss carryforward of $102.6 million , and other foreign deferred tax assets of $134.7 million . The foreign capital loss carryforward was the result of a reorganization of certain foreign subsidiaries in the current year. Due to its capital nature, it is uncertain if the loss will be utilized within its ten year carryforward period and, therefore, has a full valuation allowance. Earnings before income taxes comprised: Year Ended December 31, 2019 2018 2017 (Amounts in thousands) U.S. $ 129,917 $ 88,674 $ 102,372 Foreign 211,933 87,600 160,635 Total $ 341,850 $ 176,274 $ 263,007 A tabular reconciliation of the total gross amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in millions): 2019 2018 2017 Balance — January 1 $ 41.2 $ 51.5 $ 59.3 Gross amount of increase (decrease) in unrecognized tax benefits resulting from tax positions taken: During a prior year 8.8 (6.6 ) (3.5 ) During the current period 6.3 4.0 5.5 Decreases in unrecognized tax benefits relating to: Settlements with taxing authorities (11.4 ) (2.7 ) (10.8 ) Lapse of the applicable statute of limitations (3.2 ) (3.7 ) (3.1 ) (Decrease) increase in unrecognized tax benefits relating to foreign currency translation adjustments (1.1 ) (1.3 ) 4.1 Balance — December 31 $ 40.6 $ 41.2 $ 51.5 The amount of gross unrecognized tax benefits at December 31, 2019 , was $54.2 million , which includes $13.6 million of accrued interest and penalties. Of this amount $53.6 million , if recognized, would favorably impact our effective tax rate. With limited exception, we are no longer subject to U.S. federal income tax audits for years through 2016, state and local income tax audits for years through 2013 or foreign income tax audits for years through 2012. We are currently under examination for various years in Austria, Canada, China, France, Germany, India, Indonesia, Italy, Mexico, the Netherlands, Philippines, Saudi Arabia, Singapore, the U.S., Venezuela and Vietnam. 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 up to approximately $5 million within the next 12 months. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION In connection with the Flowserve 2.0 Transformation program, which is discussed and defined in Note 20, we have determined that there are meaningful operational synergies and benefits to combining our previously reported EPD and IPD segments into one reportable segment, FPD. During the first quarter of 2019 we implemented a reorganization of our operating segments. The reorganization of the segments reflects how our chief operating decision maker (Chief Executive Officer) regularly reviews financial information to allocate resources and assess performance . Prior periods' financial information were retrospectively adjusted to conform to the new reportable segment composition. Our business segments share a focus on industrial flow control technology and have a high 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. We conduct our operations through two business segments based on type of product and how we manage the business: • FPD for custom, highly-engineered pumps, pre-configured industrial pumps, pump systems, mechanical seals, auxiliary systems and replacement parts and related services; and • FCD for engineered and industrial valves, control valves, actuators and controls and related services. Our corporate headquarters does not constitute a separate division or business segment. Amounts classified as "Eliminations and All Other" include corporate headquarters costs and other minor entities that do not constitute separate segments. Intersegment sales and transfers are recorded at cost plus a profit margin, with the sales and related margin on such sales eliminated in consolidation. The following is a summary of the financial information of our reportable segments as of and for the years ended December 31, 2019 , 2018 and 2017 reconciled to the amounts reported in the consolidated financial statements. Subtotal—Reportable Segments Eliminations and All Other Consolidated Total FPD FCD (Amounts in thousands) Year Ended December 31, 2019: Sales to external customers $2,704,445 $ 1,240,405 $ 3,944,850 $ — $ 3,944,850 Intersegment sales 1,833 3,631 5,464 (5,464 ) — Segment operating income (loss) 343,514 197,972 541,486 (135,446 ) 406,040 Depreciation and amortization 50,845 23,577 74,422 30,059 104,481 Identifiable assets 2,974,161 1,333,926 4,308,087 611,555 4,919,642 Capital expenditures 26,450 14,449 40,899 25,271 66,170 Subtotal—Reportable Segments Eliminations and All Other Consolidated Total FPD FCD (Amounts in thousands) Year Ended December 31, 2018: Sales to external customers $2,620,488 $ 1,212,178 $ 3,832,666 $ — $ 3,832,666 Intersegment sales 2,816 3,637 6,453 (6,453 ) — Segment operating income (loss) 200,981 201,216 402,197 (154,659 ) 247,538 Depreciation and amortization 68,148 26,585 94,733 17,740 112,473 Identifiable assets 2,768,879 1,268,717 4,037,596 578,681 4,616,277 Capital expenditures 40,648 14,458 55,106 28,887 83,993 Subtotal—Reportable Segments Eliminations and All Other Consolidated Total FPD FCD (Amounts in thousands) Year Ended December 31, 2017: Sales to external customers $ 2,477,738 $ 1,183,093 $ 3,660,831 $ — $ 3,660,831 Intersegment sales 970 5,018 5,988 (5,988 ) — Segment operating income (loss) 112,287 323,682 435,969 (94,834 ) 341,135 Depreciation and amortization 77,524 27,278 104,802 13,652 118,454 Identifiable assets 2,981,822 1,317,944 4,299,766 610,708 4,910,474 Capital expenditures 28,158 16,626 44,784 16,818 61,602 Geographic Information — We attribute sales to different geographic areas based on our facilities’ locations. Long-lived assets are classified based on the geographic area in which the assets are located and exclude deferred taxes, goodwill and intangible assets. Prior period information has been updated to conform to current year presentation. Sales and long-lived assets by geographic area are as follows: Year Ended December 31, 2019 Sales Percentage Long-Lived Assets(a) Percentage (Amounts in thousands, except percentages) United States $ 1,637,736 41.5 % $ 464,216 47.1 % EMA(1) 1,397,308 35.4 % 312,668 31.7 % Asia(2) 551,759 14.0 % 143,848 14.6 % Other(3) 358,047 9.1 % 64,846 6.6 % Consolidated total $ 3,944,850 100.0 % $ 985,578 100.0 % __________________ (a) Includes ROU assets recorded under operating and finance leases based on our adoption of the New Lease Standard discussed in Note 4. Year Ended December 31, 2018 Sales Percentage Long-Lived Assets Percentage (Amounts in thousands, except percentages) United States $ 1,525,930 39.8 % $ 323,883 40.5 % EMA(1) 1,424,498 37.2 % 280,549 35.1 % Asia(2) 539,898 14.1 % 132,667 16.6 % Other(3) 342,340 8.9 % 63,161 7.8 % Consolidated total $ 3,832,666 100.0 % $ 800,260 100.0 % Year Ended December 31, 2017 Sales Percentage Long-Lived Assets Percentage (Amounts in thousands, except percentages) United States $ 1,460,899 40.0 % $ 333,126 38.2 % EMA(1) 1,434,506 39.2 % 321,256 36.9 % Asia(2) 471,054 12.9 % 148,757 17.1 % Other(3) 294,372 7.9 % 68,379 7.8 % Consolidated total $ 3,660,831 100.0 % $ 871,518 100.0 % ___________________________________ (1) "EMA" includes Europe, the Middle East and Africa. In 2019 , 2018 and 2017 , Germany accounted for approximately 6% , 7% and 10% , respectively, of consolidated long-lived assets. No other individual country within this group represents 10% or more of consolidated totals for any period presented. (2) "Asia" includes Asia and Australia. No individual country within this group represents 10% or more of consolidated totals for any period presented. (3) "Other" includes Canada and Latin America. No individual country within this group represents 10% or more of consolidated totals for any period presented. Net sales to international customers, including export sales from the U.S., represented approximately 63% of total sales in both 2019 and 2018 , and 64% in 2017 . Major Customer Information — We have a large number of customers across a large number of manufacturing and service facilities and do not have sales to any individual customer that represent 10% or more of consolidated sales for any of the years presented. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Accumulated Other Comprehensive Loss | ACCUMULATED OTHER COMPREHENSIVE LOSS The following presents the components of accumulated other comprehensive loss (AOCL), net of related tax effects: 2019 2018 (Amounts in thousands) Foreign currency translation items(1) Pension and other post-retirement effects Cash flow hedging activity Total(1) Foreign currency translation items(1) Pension and other post-retirement effects Cash flow hedging activity Total(1) Balance - January 1 $ (447,925 ) $ (120,647 ) $ (858 ) $ (569,430 ) $ (384,779 ) $ (115,755 ) $ (1,090 ) $ (501,624 ) Other comprehensive income (loss) before reclassifications 6,561 (22,523 ) 187 (15,775 ) (63,146 ) (12,022 ) 232 (74,936 ) Amounts reclassified from AOCL — 6,009 — 6,009 — 7,130 — 7,130 Net current-period other comprehensive income (loss) 6,561 (16,514 ) 187 (9,766 ) (63,146 ) (4,892 ) 232 (67,806 ) Balance - December 31 $ (441,364 ) $ (137,161 ) $ (671 ) $ (579,196 ) $ (447,925 ) $ (120,647 ) $ (858 ) $ (569,430 ) _______________________________________ (1) Includes foreign currency translation adjustments attributable to noncontrolling interests of $5.1 million , $4.5 million and $3.8 million for December 31, 2019 , 2018 and 2017 , respectively. For the year ended December 31, 2019 , foreign currency translation impacts primarily represented the weakening of the Euro, British pound, Chinese yuan and Indian rupee exchange rates versus the U.S. dollar for the period. For the year ended December 31, 2018 , foreign currency translation impacts primarily represented the weakening of the Euro, Argentine peso, Indian rupee and British pound exchange rates versus the U.S. dollar for the period. Includes net investment hedge cumulative losses of $12.1 million and $17.2 million , net of deferred taxes, at December 31, 2019 and 2018 , respectively. Amounts in parentheses indicate debits. The following table presents the reclassifications out of AOCL: (Amounts in thousands) Affected line item in the statement of income 2019(1) 2018(1) Pension and other postretirement effects Amortization of actuarial losses(2) Other income (expense), net $ (6,608 ) $ (9,140 ) Prior service costs(2) Other income (expense), net (429 ) (197 ) Settlements and other(2) Other income (expense), net (859 ) 983 Tax benefit 1,887 1,224 Net of tax $ (6,009 ) $ (7,130 ) ______________________________________ (1) Amounts in parentheses indicate decreases to income. None of the reclassification amounts have a noncontrolling interest component. (2) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 13 for additional details. |
Realignment and Transformation
Realignment and Transformation Programs | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Realignment and Transformation Programs | REALIGNMENT AND TRANSFORMATION PROGRAMS In the second quarter of 2018, we launched and committed resources to our Flowserve 2.0 Transformation ("Flowserve 2.0 Transformation"), a program designed to transform our business model to drive operational excellence, reduce complexity, accelerate growth, improve organizational health and better leverage our existing global platform. For the years ended December 31, 2019 and 2018 , we incurred Flowserve 2.0 Transformation related expenses of $28.0 million and 41.2 million , respectively. The Flowserve 2.0 Transformation expenses incurred primarily consist of professional services, project management and related travel costs recorded in SG&A. In 2015, we initiated realignment programs to better align costs and improve long-term efficiency, including manufacturing optimization through the consolidation of facilities, reduction in our workforce and divestiture of certain non-strategic assets (the “Realignment Programs”). The Realignment Programs consist of both restructuring and non-restructuring charges. Restructuring charges represent costs associated with the relocation or reorganization of certain business activities and facility closures and include related severance costs. Non-restructuring charges are primarily employee severance associated with workforce reductions to reduce redundancies. Expenses are primarily reported in COS or SG&A, as applicable, in our consolidated statements of income. These Realignment Programs have been substantially completed as of December 31, 2019 and we have incurred charges of $351.7 million to date. 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, related to the Realignment and Flowserve 2.0 Transformation program charges : December 31, 2019 (Amounts in thousands) FPD FCD Subtotal–Reportable Segments Eliminations and All Other Consolidated Total Restructuring Charges COS $ 1,149 $ 2,653 $ 3,802 $ — $ 3,802 SG&A(1) (16,610 ) 556 (16,054 ) — (16,054 ) Income tax expense(2) (4,000 ) — (4,000 ) — (4,000 ) $ (19,461 ) $ 3,209 $ (16,252 ) $ — $ (16,252 ) Non-Restructuring Charges COS $ 11,438 $ 1,742 $ 13,180 $ 255 $ 13,435 SG&A 2,104 218 2,322 4,428 6,750 $ 13,542 $ 1,960 $ 15,502 $ 4,683 $ 20,185 Transformation Charges SG&A $ — $ — $ — $ 28,039 $ 28,039 $ — $ — $ — $ 28,039 $ 28,039 Total Realignment and Transformation Charges COS $ 12,587 $ 4,395 $ 16,982 $ 255 $ 17,237 SG&A (14,506 ) 774 (13,732 ) 32,467 18,735 Income tax expense(2) (4,000 ) — (4,000 ) — (4,000 ) Total $ (5,919 ) $ 5,169 $ (750 ) $ 32,722 $ 31,972 _____________________________ (1) Includes gains from the sales of non-strategic manufacturing facilities that are included in our Realignment Programs. (2) Income tax expense (benefit) includes exit taxes. December 31, 2018 (Amounts in thousands) FPD FCD Subtotal–Reportable Segments Eliminations and All Other Consolidated Total Restructuring Charges COS $ 18,405 $ 4,370 $ 22,775 $ — $ 22,775 SG&A 1,853 358 2,211 38 2,249 Income tax expense(1) (1,000 ) — (1,000 ) — (1,000 ) $ 19,258 $ 4,728 $ 23,986 $ 38 $ 24,024 Non-Restructuring Charges COS 21,072 $ (1,149 ) $ 19,923 $ — $ 19,923 SG&A 4,057 (652 ) 3,405 5,580 8,985 $ 25,129 $ (1,801 ) $ 23,328 $ 5,580 $ 28,908 Transformation Charges SG&A $ — $ — $ — $ 41,168 $ 41,168 $ — $ — $ — $ 41,168 $ 41,168 Total Realignment and Transformation Charges COS $ 39,477 $ 3,221 $ 42,698 $ — $ 42,698 SG&A 5,910 (294 ) 5,616 46,786 52,402 Income tax expense(1) (1,000 ) — (1,000 ) — (1,000 ) Total $ 44,387 $ 2,927 $ 47,314 $ 46,786 $ 94,100 ____________________________________ (1) Income tax expense (benefit) includes exit taxes as well as non-deductible costs. The following is a summary of total inception to date charges, net of adjustments, related to the Realignment Programs: Inception to Date (Amounts in thousands) FPD FCD Subtotal–Reportable Segments Eliminations and All Other Consolidated Total Restructuring Charges COS $ 110,191 $ 29,678 $ 139,869 $ — $ 139,869 SG&A 20,300 10,011 30,311 317 30,628 Income tax expense(1) 14,700 1,800 16,500 — 16,500 $ 145,191 $ 41,489 $ 186,680 $ 317 $ 186,997 Non-Restructuring Charges COS $ 79,922 $ 15,460 $ 95,382 $ 263 $ 95,645 SG&A 41,408 7,730 49,138 19,930 69,068 $ 121,330 $ 23,190 $ 144,520 $ 20,193 $ 164,713 Total Realignment Charges COS $ 190,113 $ 45,138 $ 235,251 $ 263 $ 235,514 SG&A 61,708 17,741 79,449 20,247 99,696 Income tax expense(1) 14,700 1,800 16,500 — 16,500 Total $ 266,521 $ 64,679 $ 331,200 $ 20,510 $ 351,710 ____________________________________ (1) Income tax expense (benefit) includes exit taxes as well as non-deductible costs. 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 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 the Realignment Programs: December 31, 2019 (Amounts in thousands) Severance Contract Termination Asset Write-Downs/(Gains) Other Total COS $ 2,183 $ 58 $ (1,782 ) $ 3,343 $ 3,802 SG&A(1) 2,211 — (18,429 ) 164 (16,054 ) Income tax expense(2) — — — (4,000 ) (4,000 ) Total $ 4,394 $ 58 $ (20,211 ) $ (493 ) $ (16,252 ) _________________________ (1) Primarily consists of gains from the sales of non-strategic manufacturing facilities that are included in our Realignment Programs. (2) Income tax expense (benefit) includes exit taxes. December 31, 2018 (Amounts in thousands) Severance Contract Termination Asset Write-Downs Other Total COS $ 2,975 $ 5 $ 9,018 $ 10,777 $ 22,775 SG&A 1,875 — 12 362 2,249 Income tax expense(1) — — — (1,000 ) (1,000 ) Total $ 4,850 $ 5 $ 9,030 $ 10,139 $ 24,024 _____________________________________ (1) Income tax expense (benefit) includes exit taxes as well as non-deductible costs. The following is a summary of total inception to date restructuring charges, net of adjustments, related to the Realignment Programs: Inception to Date (Amounts in thousands) Severance Contract Termination Asset Write-Downs Other Total (1) COS $ 87,343 $ 965 $ 22,553 $ 29,008 $ 139,869 SG&A 33,956 43 (16,740 ) 13,369 30,628 Income tax expense(1) — — — 16,500 16,500 Total $ 121,299 $ 1,008 $ 5,813 $ 58,877 $ 186,997 _______________________________ (1) Income tax expense (benefit) includes exit taxes as well as non-deductible costs. The following represents the activity, primarily severance, related to the restructuring reserve for the Realignment Programs for the years ended December 31, 2019 and 2018 : (Amounts in thousands) 2019 2018 Balance at January 1, $ 11,927 $ 39,230 Charges 7,958 15,996 Cash expenditures (12,865 ) (28,267 ) Other non-cash adjustments, including currency(1) (317 ) (15,032 ) Balance at December 31, $ 6,703 $ 11,927 _______________________________ (1) Includes a reduction of severance accruals associated with the divestiture of two FPD locations and associated product lines in 2018. Refer to Note 3 of this Annual Report for further discussion. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) The following presents a summary of the unaudited quarterly data for 2019 and 2018 (amounts in millions, except per share data): 2019 Quarter 4th 3rd 2nd 1st Sales $ 1,068.2 $ 996.5 $ 990.1 $ 890.1 Gross profit 349.6 333.7 318.0 294.1 Earnings before income taxes 86.7 96.2 82.9 76.1 Net earnings attributable to Flowserve Corporation 69.8 68.4 58.2 57.3 Earnings per share(1): Basic $ 0.53 $ 0.52 $ 0.44 $ 0.44 Diluted 0.53 0.52 0.44 0.44 2018 Quarter 4th 3rd 2nd 1st Sales $ 986.9 $ 952.7 $ 973.1 $ 920.0 Gross profit 321.8 308.5 286.1 271.4 Earnings before income taxes 78.6 44.4 28.3 25.0 Net earnings attributable to Flowserve Corporation 63.1 28.2 13.2 15.1 Earnings per share(1): Basic $ 0.48 $ 0.22 $ 0.10 $ 0.12 Diluted 0.48 0.21 0.10 0.12 _______________________________________ (1) Earnings per share is computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in weighted average quarterly shares outstanding. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | FLOWSERVE CORPORATION Schedule II — Valuation and Qualifying Accounts For the Years Ended December 31, 2019 , 2018 and 2017 Description Balance at Beginning of Year Additions Charged to Cost and Expenses Additions Charged to Other Accounts— Acquisitions and Related Adjustments Deductions From Reserve Balance at End of Year (Amounts in thousands) Year Ended December 31, 2019 Allowance for doubtful accounts(a): $ 51,501 9,906 — (7,995 ) $ 53,412 Deferred tax asset valuation allowance(b): 133,929 145,010 1,832 (14,357 ) 266,414 Year Ended December 31, 2018 Allowance for doubtful accounts(a): 59,113 8,050 — (15,662 ) 51,501 Deferred tax asset valuation allowance(b): 119,309 32,157 (7,551 ) (9,986 ) 133,929 Year Ended December 31, 2017 Allowance for doubtful accounts(a): 51,920 14,508 — (7,315 ) 59,113 Deferred tax asset valuation allowance(b): 36,191 86,694 2,595 (6,171 ) 119,309 _______________________________________ (a) Deductions from reserve represent accounts written off and recoveries. (b) |
Significant Accounting Polici_2
Significant Accounting Policies and Accounting Developments (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation — The consolidated financial statements include the accounts of our company and our wholly and majority-owned subsidiaries. In addition, we would consolidate any variable interest entities for which we are deemed to be the primary beneficiary. Noncontrolling interests of non-affiliated parties have been recognized for all majority-owned consolidated subsidiaries. Intercompany profits/losses, transactions and balances among consolidated entities have been eliminated from our consolidated financial statements. Investments in unconsolidated affiliated companies, which represent noncontrolling ownership interests between 20% and 50% , are accounted for using the equity method, which approximates our equity interest in their underlying equivalent net book value under accounting principles generally accepted in the U.S. ("U.S. GAAP"). Investments in interests where we own less than 20% of the investee are accounted for by the cost method, whereby income is only recognized in the event of dividend receipt. Investments accounted for by the cost method are tested for impairment if an impairment indicator is present. |
Use of Estimates | Use of Estimates — The process of preparing financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect reported amounts of certain assets, liabilities, revenues and expenses. We believe our estimates and assumptions are reasonable; however, actual results may differ materially from such estimates. The most significant estimates and assumptions are used in determining: • Timing and amount of 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. |
Revenue Recognition | Revenue Recognition — We adopted Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("New Revenue Standard") on January 1, 2018, using the modified retrospective method for transition; periods prior to January 1, 2018, are presented in accordance with "Revenue Recognition (Topic 605)" ("Topic 605"). 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. We recognize revenue when (or as) we satisfy a performance obligation by transferring control to a customer. Transfer of control is evaluated based on the customer’s ability to direct the use of and obtain substantially all of the benefits of a performance obligation. Revenue is recognized either over time or at a point in time, depending on the specific facts and circumstances for each contract, including the terms and conditions of the contract as agreed with the customer and the nature of the products or services to be provided. Our primary method for recognizing revenue over time is the percentage of completion (“POC”) method, whereby progress towards completion is measured by applying an input measure based on costs incurred to date relative to total estimated costs at completion. If control of the products and/or services does not transfer over time, then control transfers at a point in time. We determine the point in time that control transfers to a customer based on the evaluation of specific indicators, such as title transfer, risk of loss transfer, customer acceptance and physical possession. For a detailed discussion related to revenue recognition refer to Note 2. |
Cash and Cash Equivalents | Cash and Cash Equivalents — We place temporary cash investments with financial institutions and, by policy, invest in those institutions and instruments that have minimal credit risk and market risk. These investments, with an original maturity of three months or less when purchased, are classified as cash equivalents. They are highly liquid and principal values are not subject to significant risk of change due to interest rate fluctuations. |
Allowance for Doubtful Accounts and Credit Risk | Allowance for Doubtful Accounts and Credit Risk — The allowance for doubtful accounts is established based on estimates of the amount of uncollectible accounts receivable, which is determined principally based upon the aging of the accounts receivable, but also customer credit history, industry and market segment information, economic trends and conditions and credit reports. Customer credit issues, customer bankruptcies or general economic conditions may also impact our estimates. Credit risks are mitigated by the diversity of our customer base across many different geographic regions and industries and by performing creditworthiness analyses on our customers. Additionally, we mitigate credit risk through letters of credit and advance payments received from our customers. We do not believe that we have any other significant concentrations of credit risk. |
Inventories and Related Reserves | Inventories and Related Reserves — Inventories are stated at the lower of cost and net realizable value. Cost is determined by the first-in, first-out method. Reserves for excess and obsolete inventories are based upon our assessment of market conditions for our products determined by historical usage and estimated future demand. Due to the long life cycles of our products, we carry spare parts inventories that have historically low usage rates and provide reserves for such inventory based on demonstrated usage and aging criteria. |
Income Taxes, Deferred Taxes, Tax Valuation Allowances and Tax Reserves | Income Taxes, Deferred Taxes, Tax Valuation Allowances and Tax Reserves — We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are calculated using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. We record valuation allowances to reduce the carrying value of deferred tax assets to amounts that we expect are more likely than not to be realized. We assess existing deferred tax assets, net operating losses and tax credits by jurisdiction and expectations of our ability to utilize these tax attributes through a review of past, current and estimated future taxable income and establishment of tax planning strategies. We provide deferred taxes for the temporary differences associated with our investment in foreign subsidiaries that have a financial reporting basis that exceeds tax basis, unless we can assert permanent reinvestment in foreign jurisdictions. Financial reporting basis and tax basis differences in investments in foreign subsidiaries consist of both unremitted earnings and losses, as well as foreign currency translation adjustments. The amount of income taxes we pay is subject to ongoing audits by federal, state, and foreign tax authorities, which often result in proposed assessments. We establish reserves for open tax years for uncertain tax positions that may be subject to challenge by various tax authorities. The consolidated tax provision and related accruals include the impact of such reasonably estimable losses and related interest and penalties as deemed appropriate. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities. The determination is based on the technical merits of the position and presumes that each uncertain tax position will be examined by the relevant taxing authority that has full knowledge of all relevant information. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. |
Legal and Environmental Contingencies | Legal and Environmental Contingencies — Legal and environmental reserves are recorded based upon a case-by-case analysis of the relevant facts and circumstances and an assessment of potential legal obligations and costs. Amounts relating to legal and environmental liabilities are recorded when it is probable that a loss has been incurred and such loss is reasonably estimable. Assessments of legal and environmental costs are based on information obtained from our independent and in-house experts and our loss experience in similar situations. Estimates are updated as applicable when new information regarding the facts and circumstances of each matter becomes available. Legal fees associated with legal and environmental liabilities are expensed as incurred. Estimates of liabilities for unsettled asbestos-related claims are based on known claims and on our experience during the preceding two years for claims filed, settled and dismissed, with adjustments for events deemed unusual and unlikely to recur, and are included in retirement obligations and other liabilities in our consolidated balance sheets. A substantial majority of our asbestos-related claims are covered by insurance or indemnities. Estimated indemnities and receivables from insurance carriers for unsettled claims and receivables for settlements and legal fees paid by us for asbestos-related claims are estimated using our historical experience with insurance recovery rates and estimates of future recoveries, which include estimates of coverage and financial viability of our insurance carriers. Estimated receivables are included in other assets, net in our consolidated balance sheets. We have claims pending against certain insurers that, if resolved more favorably than estimated future recoveries, would result in discrete gains in the applicable quarter. We are currently unable to estimate the impact, if any, of unasserted asbestos-related claims, although future claims would also be subject to existing indemnities and insurance coverage. |
Warranty Accruals | Warranty Accruals — Warranty obligations are based upon product failure rates, materials usage, service delivery costs, an analysis of all identified or expected claims and an estimate of the cost to resolve such claims. The estimates of expected claims are generally a factor of historical claims and known product issues. Warranty obligations based on these factors are adjusted based on historical sales trends for the preceding 24 months . |
Insurance Accruals | Insurance Accruals — Insurance accruals are recorded for wholly or partially self-insured risks such as medical benefits and workers’ compensation and are based upon an analysis of our claim loss history, insurance deductibles, policy limits and other relevant factors that are updated annually and are included in accrued liabilities in our consolidated balance sheets. The estimates are based upon information received from actuaries, insurance company adjusters, independent claims administrators or other independent sources. Receivables from insurance carriers are estimated using our historical experience with insurance recovery rates and estimates of future recoveries, which include estimates of coverage and financial viability of our insurance carriers. Estimated receivables are included in accounts receivable, net and other assets, net, as applicable, in our consolidated balance sheets. |
Pension and Postretirement Obligations | Pension and Postretirement Obligations — Determination of pension and postretirement benefits obligations is based on estimates made by management in consultation with independent actuaries and investment advisors. Inherent in these valuations are assumptions including discount rates, expected rates of return on plan assets, retirement rates, mortality rates and rates of compensation increase and other factors all of which are reviewed annually and updated if necessary. Current market conditions, including changes in rates of return, interest rates and medical inflation rates, are considered in selecting these assumptions. Actuarial gains and losses and prior service costs are recognized in accumulated other comprehensive loss as they arise and we amortize these costs into net pension expense over the remaining expected service period. |
Property, Plant and Equipment and Depreciation | Property, Plant and Equipment and Depreciation — Property, plant and equipment are stated at historical cost, less accumulated depreciation. If asset retirement obligations exist, they are capitalized as part of the carrying amount of the asset and depreciated over the remaining useful life of the asset. The useful lives of leasehold improvements are the lesser of the remaining lease term or the useful life of the improvement. When assets are retired or otherwise disposed of, their costs and related accumulated depreciation are removed from the accounts and any resulting gains or losses are included in income from operations for the period. Depreciation is computed by the straight-line method based on the estimated useful lives of the depreciable assets, or in the case of assets under finance leases, over the related lease term. Generally, the estimated useful lives of the assets are: Buildings and improvements 10 to 40 years Machinery, equipment and tooling 3 to 14 years Software, furniture and fixtures and other 3 to 7 years Costs related to routine repairs and maintenance are expensed as incurred. |
Leases | Leases — We have operating and finance leases for certain manufacturing facilities, offices, service and quick response centers, machinery, equipment and automobiles. Our leases have remaining lease terms of up to 34 years . The terms and conditions of our leases may include options to extend or terminate the lease which are considered and included in the lease term when these options are reasonably certain of exercise. We determine if a contract is (or contains) a lease at inception by evaluating whether the contract conveys the right to control the use of an identified asset. For all classes of leased assets, we account for any non-lease components in the contract together with the related lease component in the same unit of account. For lease contracts containing more than one lease component, we allocate the contract consideration to each of the lease components on the basis of relative standalone prices in order to identify the lease payments for each lease component. ROU assets and lease liabilities are recognized in our consolidated balance sheets at the commencement date based on the present value of remaining lease payments over the lease term. Additionally, ROU assets include any lease payments made at or before the commencement date, as well as any initial direct costs incurred, and are reduced by any lease incentives received. For a detailed discussion related to leases refer to Note 4. |
Internally Developed Software | Internally Developed Software — We capitalize certain costs associated with the development of internal-use software. Generally, these costs are related to significant software development projects and are amortized over their estimated useful life, typically three to five years, upon implementation of the software. |
Intangible Assets | Intangible Assets — Intangible assets, excluding trademarks (which are considered to have an indefinite life), consist primarily of engineering drawings, patents, existing customer relationships, software, distribution networks and other items that are being amortized over their estimated useful lives generally ranging from four to 40 years . These assets are reviewed for impairment whenever events and circumstances indicate impairment may have occurred. |
Valuation of Goodwill, Indefinite-Lived Intangible Assets and Other Long-Lived Assets | Valuation of Goodwill, Indefinite-Lived Intangible Assets and Other Long-Lived Assets — The value of goodwill and indefinite-lived intangible assets is tested for impairment as of December 31 each year or whenever events or circumstances indicate such assets may be impaired. The identification of our reporting units began at the operating segment level and considered whether components one level below the operating segment levels should be identified as reporting units for purpose of testing goodwill for impairment based on certain conditions. These conditions included, among other factors, (i) the extent to which a component represents a business and (ii) the aggregation of economically similar components within the operating segments and resulted in four reporting units. Other factors that were considered in determining whether the aggregation of components was appropriate included the similarity of the nature of the products and services, the nature of the production processes, the methods of distribution and the types of industries served. An impairment loss for goodwill is recognized if the implied fair value of goodwill is less than the carrying value. We estimate the fair value of our reporting units based on an income approach, whereby we calculate the fair value of a reporting unit based on the present value of estimated future cash flows. A discounted cash flow analysis requires us to make various judgmental assumptions about future sales, operating margins, growth rates and discount rates, which are based on our budgets, business plans, economic projections, anticipated future cash flows and market participants. We did not record an impairment of goodwill in 2019, 2018 or 2017. We also considered our market capitalization in our evaluation of the fair value of our goodwill. Our market capitalization increased as compared with 2018 and did not indicate a potential impairment of our goodwill as of December 31, 2019. Impairment losses for indefinite-lived intangible assets are recognized whenever the estimated fair value is less than the carrying value. Fair values are calculated for trademarks using a "relief from royalty" method, which estimates the fair value of a trademark by determining the present value of estimated royalty payments that are avoided as a result of owning the trademark. This method includes judgmental assumptions about sales growth and discount rates that have a significant impact on the fair value and are substantially consistent with the assumptions used to determine the fair value of our reporting unit discussed above. We did not record a material impairment of our trademarks in 2019 , 2018 or 2017 . The recoverable value of other long-lived assets, including property, plant and equipment and finite-lived intangible assets, is reviewed when indicators of potential impairments are present. The recoverable value is based upon an assessment of the estimated future cash flows related to those assets, utilizing assumptions similar to those for goodwill. Additional considerations related to our long-lived assets include expected maintenance and improvements, changes in expected uses and ongoing operating performance and utilization. |
Deferred Loan Costs | Deferred Loan Costs — Deferred loan costs, consisting of fees and other expenses associated with debt financing, are amortized over the term of the associated debt using the effective interest method. Additional amortization is recorded in periods where optional prepayments on debt are made. |
Fair Values of Financial Instruments | Fair Values of Financial Instruments — Our financial instruments are presented at fair value in our consolidated balance sheets, with the exception of our long-term debt. 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 consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Hierarchical levels, as defined by Accounting Standards Codification ("ASC") 820, "Fair Value Measurements and Disclosures," are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities. An asset or a liability’s categorization within the fair value hierarchy is based on the lowest level of significant input to its valuation. Hierarchical levels are as follows: Level I — Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date. Level II — Inputs (other than quoted prices included in Level I) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life. Level III — Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Recurring fair value measurements are limited to investments in derivative instruments and certain equity securities. 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 derivative instruments are included in Note 8. The fair value measurements of our investments in equity securities are determined using quoted market prices and are classified as Level I. The fair values of our investments in equity securities, and changes thereto, are immaterial to our consolidated financial position and results of operations. |
Derivatives and Hedging Activities | Derivatives and Hedging Activities — We have a foreign currency derivatives and hedging policy outlining the conditions under which we can enter into financial derivative transactions. We do not use derivative instruments for trading or speculative purposes. All derivative instruments are recognized on the balance sheet at their fair values. We employ a foreign currency economic hedging strategy to mitigate certain financial risks resulting from foreign currency exchange rate movements that impact foreign currency denominated receivables and payables, firm committed transactions and forecasted sales and purchases. The changes in the fair values are recognized immediately in other income (expense), net in the consolidated statements of income. See Note 8 for further discussion of forward exchange contracts. 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 forward exchange contracts and expect all counterparties to meet their obligations. If necessary, we would adjust the values of our derivative contracts for our or our counterparties’ credit risks. |
Foreign Currency Translation | Foreign Currency Translation — Assets and liabilities of our foreign subsidiaries are translated to U.S. dollars at exchange rates prevailing at the balance sheet date, while income and expenses are translated at average rates for each month. Translation gains and losses are reported as a component of accumulated other comprehensive loss. Transactional currency gains and losses arising from transactions in currencies other than our sites’ functional currencies are included in our consolidated results of operations. Transaction and translation gains and losses arising from intercompany balances are reported as a component of accumulated other comprehensive loss when the underlying transaction stems from a long-term equity investment or from debt designated as not due in the foreseeable future. Otherwise, we recognize transaction gains and losses arising from intercompany transactions as a component of income. Where intercompany balances are not long-term investment related or not designated as due beyond the foreseeable future, we may mitigate risk associated with foreign currency fluctuations by entering into forward exchange contracts. |
Stock-Based Compensation | Stock-Based Compensation — Stock-based compensation is measured at the grant-date fair value. The exercise price of stock option awards and the value of restricted share, restricted share unit and performance-based unit awards (collectively referred to as "Restricted Shares") are set at the closing price of our common stock on the New York Stock Exchange on the date of grant, which is the date such grants are authorized by our Board of Directors. Restricted share units and performance-based units refer to restricted awards that do not have voting rights and accrue dividends, and are forfeited if vesting does not occur. The intrinsic value of Restricted Shares, which is typically the product of share price at the date of grant and the number of Restricted Shares granted, is amortized on a straight-line basis to compensation expense over the periods in which the restrictions lapse based on the expected number of shares that will vest. We account for forfeitures as they occur resulting in the reversal of cumulative expense previously recognized. |
Earnings Per Share | Earnings Per Share — We use the two-class method of calculating Earnings Per Share ("EPS"), which determines earnings per share for each class of common stock and participating security as if all earnings for the period had been distributed. Unvested restricted share awards that earn non-forfeitable dividend rights qualify as participating securities and, accordingly, are included in the basic computation as such. Our unvested Restricted Shares participate on an equal basis with common shares; therefore, there is no difference in undistributed earnings allocated to each participating security. Accordingly, the presentation below is prepared on a combined basis and is presented as earnings per common share. The following is a reconciliation of net earnings of Flowserve Corporation and weighted average shares for calculating net earnings per common share: Year Ended December 31, 2019 2018 2017 (Amounts in thousands, except per share data) Net earnings of Flowserve Corporation $ 253,668 $ 119,671 $ 2,652 Dividends on restricted shares not expected to vest — — — Earnings attributable to common and participating shareholders $ 253,668 $ 119,671 $ 2,652 Weighted average shares: Common stock 131,012 130,794 130,600 Participating securities 22 29 103 Denominator for basic earnings per common share 131,034 130,823 130,703 Effect of potentially dilutive securities 685 448 655 Denominator for diluted earnings per common share 131,719 131,271 131,358 Net earnings per share attributable to Flowserve Corporation common shareholders: Basic $ 1.94 $ 0.91 $ 0.02 Diluted 1.93 0.91 0.02 Diluted earnings per share 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, restricted shares, restricted share units and performance share units. |
Research and Development Expense | Research and Development Expense — Research and development costs are charged to expense when incurred. Aggregate research and development costs included in SG&A were $42.0 million , $39.6 million and $38.6 million in 2019 , 2018 and 2017 , respectively. Costs incurred for research and development primarily include salaries and benefits and consumable supplies, as well as rent, professional fees, utilities and the depreciation of property and equipment used in research and development activities. |
Accounting Developments | Accounting Developments Pronouncements Implemented In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842) ("New Lease Standard"). The New Lease Standard increases transparency and comparability by requiring lessees to recognize right-of-use (“ROU”) assets and lease liabilities for operating leases on their consolidated balance sheets. Additionally, expanded disclosures are required to enable users of financial statements to understand the amount, timing and uncertainty of cash flows arising from leases. We adopted the New Lease Standard effective January 1, 2019, utilizing the modified retrospective approach and elected an initial application date of January 1, 2019. The adoption resulted in an increase to total assets and liabilities due to the recording of lease ROU assets and lease liabilities of approximately $225 million as of January 1, 2019. The adoption did not materially impact our consolidated results of operations or cash flows. Refer to Note 4 for further discussion of our adoption of the New Lease Standard. On July 13, 2017, the FASB issued ASU No. 2017-11, “Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815): (Part I) Accounting for Certain Financial Instruments with Down Round Features, (Part II) Replacement of the Indefinite Deferral for Mandatory Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatory Redeemable Noncontrolling Interests with a Scope Exception.” The ASU amends guidance in FASB Accounting Standards Codification ("ASC") 260, Earnings Per Share, FASB ASC 480, Distinguishing Liabilities from Equity, and FASB ASC 815, Derivatives and Hedging. The amendments in Part I of this ASU change the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. The amendments in this ASU must be applied to annual reporting periods beginning after December 15, 2018. Our adoption of ASU No. 2017-11 effective January 1, 2019 did not have an impact on our consolidated financial condition and results of operations. On August 28, 2017, the FASB issued ASU No. 2017-12, "Derivatives and Hedging (Topic 815): Targeted improvements of Accounting for Hedging Activities." The purpose of this ASU is to better align a company’s risk management activities and financial reporting for hedging relationships. Additionally, the ASU simplifies the hedge accounting requirements and improve the disclosures of hedging arrangements. The amendments in this ASU must be applied to annual reporting periods beginning after December 15, 2019. Early adoption is permitted. Our adoption of ASU No. 2017-12 effective January 1, 2019 did not have an impact on our consolidated financial condition and results of operations. In February 2018, the FASB issued ASU No. 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Comprehensive Income (“AOCI”)." The ASU and its amendments were issued as a result of the enactment of the U.S. Tax Cuts and Jobs Act of 2017. The amendments of this ASU address the available options to reclassify stranded tax effects within AOCI to retained earnings in each period in which the effect of the change (or portion thereof) is recorded. Additionally, the ASU outlines the disclosure requirements for releasing income tax effects from AOCI. The ASU is effective for fiscal years beginning after December 15, 2018. The ASU should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. We adopted this ASU effective January 1, 2019 and elected not to reclassify the income tax effects of the Tax Cuts and Jobs Act from accumulated comprehensive income to retained earnings. In July 2018, the FASB issued ASU No. 2018-07, "Compensation - Stock Compensation (Topic 718) - Improvements to Non-employee Share-based Payment Accounting." The amendments of this ASU apply to all share-based payment transactions to non-employees, in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations, accounted under ASC 505-50, Equity-Based Payments to Non-Employees. Under the amendments of ASU 2018-07, most of the guidance on compensation to non-employees would be aligned with the requirements for shared based payments granted to employees, Topic 718. The ASU is effective for fiscal years beginning after December 15, 2018. Our adoption of ASU No. 2018-07-12 effective January 1, 2019 did not have an impact on our consolidated financial condition and results of operations. Pronouncements Not Yet Implemented In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments." The ASU requires, among other things, the use of a new current expected credit loss ("CECL") model in order to determine our allowances for doubtful accounts with respect to accounts receivable, contract assets, leased assets and guarantees. The CECL model requires that we estimate our lifetime expected credit loss with respect to our receivables and contract assets and record allowances that, when deducted from the balance of the receivables, represent the net amounts expected to be collected. During our evaluation of ASU No. 2016-13 and all related ASUs, we formed a project team to assess the requirements of the new guidance, which included a review of our financial assets measured at amortized cost basis and the associated methodology for development of reserves. To support the requirements of the new standard and all related ASUs, we modified our accounting policies and processes, and adopted the new standard on a prospective basis as of January 1, 2020. The adoption of ASU No. 2016-13 is not expected to have a material impact on our consolidated financial condition and results of operations. In January 2017, the FASB issued ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The amendments in this ASU allow companies to apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The amendments of the ASU are effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of ASU No. 2017-04 is not expected to have a material impact on our consolidated financial condition and results of operations. In August 2018, the FASB issued ASU No. 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement." The amendments of the ASU modify the disclosure requirements for fair value measurements by removing, modifying, or adding certain disclosure information requirements for assets and liabilities measured at fair value in the statement of financial position or disclosed in the notes to financial statements. The ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted for the removed disclosures and delayed adoption until fiscal year 2020 permitted for the new disclosures. The removed and modified disclosures will be adopted on a retrospective basis and the new disclosures will be adopted on a prospective basis. The adoption of ASU No. 2018-13 is not expected to have a material impact on our consolidated financial condition and results of operations. In August 2018, the FASB issued ASU No. 2018-14, "Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans." The ASU amends the disclosure requirements by adding, clarifying, or removing certain disclosures for sponsor defined benefit pension or other postretirement plans. The amendments are effective for fiscal years ending after December 15, 2020 and the amendments should be applied retrospectively to all periods presented. The adoption of ASU No. 2018-14 is not expected to have a material impact on our consolidated financial condition and results of operations. In August 2018, the FASB issued ASU No. 2018-15, "Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." The ASU addresses how entities should account for costs associated with implementing a cloud computing arrangement that is considered a service contract. Per the amendments of the ASU, implementation costs incurred in a cloud computing arrangement that is a service contract should be accounted for in the same manner as implementation costs incurred to develop or obtain software for internal use as prescribed by guidance in ASC350-40. The ASU requires that implementation costs incurred in a cloud computing arrangement be capitalized rather than expensed. Further, the ASU specifies the method for the amortization of costs incurred during implementation, and the manner in which the unamortized portion of these capitalized implementation costs should be evaluated for impairment. The ASU also provides guidance on how to present such implementation costs in the financial statements and also creates additional disclosure requirements. The amendments are effective for fiscal years beginning after December 15, 2019, including interim periods. The amendments in this ASU should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The adoption of ASU No. 2018-15 is not expected to have a material impact on our consolidated financial condition and results of operations. In October 2018, the FASB issued ASU No. 2018-17, "Consolidation (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities ( "VIEs" )." The standard reduces the cost and complexity of financial reporting associated with VIEs. The new standard amends the guidance for determining whether a decision-making fee is a VIE. The amendments require organizations to consider indirect interests held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety as currently required in GAAP. The amendments of this ASU are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The adoption of ASU No. 2018-17 is not expected to have a material impact on our consolidated financial condition and results of operations. In November 2018, the FASB issued ASU No. 2018-18, "Collaborative Arrangements (Topic 808): Clarifying the Interaction Between Topic 808 and Topic 606" ("New Revenue Standard"). The ASU clarifies the interaction between the guidance for certain collaborative arrangements and the New Revenue Standard. The amendments of the ASU provide guidance on how to assess whether certain transactions between collaborative arrangement participants should be accounted for within the New Revenue Standard. The ASU also provides more comparability in the presentation of revenue for certain transactions between collaborative arrangement participants. Parts of the collaborative arrangement that are not in the purview of the revenue recognition standard should be presented separately. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The adoption of ASU No. 2018-18 is not expected to have a material impact on our consolidated financial condition and results of operations. In December 2019, the FASB issued ASU No. 2019-12, “ Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes,” (Topic 740). The ASU intends to simplify various aspects related to accounting for income taxes and removes certain exceptions to the general principles in the standard. Additionally, the ASU clarifies and amends existing guidance to improve consistent application of its requirements. The amendments of the ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The adoption of ASU No. 2019-12 is not expected to have a material impact on our consolidated financial condition and results of operations. |
Significant Accounting Polici_3
Significant Accounting Policies and Accounting Developments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Assets | Generally, the estimated useful lives of the assets are: Buildings and improvements 10 to 40 years Machinery, equipment and tooling 3 to 14 years Software, furniture and fixtures and other 3 to 7 years |
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: Year Ended December 31, 2019 2018 2017 (Amounts in thousands, except per share data) Net earnings of Flowserve Corporation $ 253,668 $ 119,671 $ 2,652 Dividends on restricted shares not expected to vest — — — Earnings attributable to common and participating shareholders $ 253,668 $ 119,671 $ 2,652 Weighted average shares: Common stock 131,012 130,794 130,600 Participating securities 22 29 103 Denominator for basic earnings per common share 131,034 130,823 130,703 Effect of potentially dilutive securities 685 448 655 Denominator for diluted earnings per common share 131,719 131,271 131,358 Net earnings per share attributable to Flowserve Corporation common shareholders: Basic $ 1.94 $ 0.91 $ 0.02 Diluted 1.93 0.91 0.02 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Disaggregation of Revenue | The following table presents our customer revenues disaggregated by revenue source: December 31, 2019 (Amounts in thousands) FPD FCD Total Original Equipment $ 994,719 $ 972,424 $ 1,967,143 Aftermarket 1,709,726 267,981 1,977,707 $ 2,704,445 $ 1,240,405 $ 3,944,850 December 31, 2018 (Amounts in thousands) FPD FCD Total Original Equipment $ 992,162 $ 943,893 $ 1,936,055 Aftermarket 1,628,326 268,285 1,896,611 $ 2,620,488 $ 1,212,178 $ 3,832,666 December 31, 2017 (1) (Amounts in thousands) FPD FCD Total Original Equipment $ 968,856 $ 906,890 $ 1,875,746 Aftermarket 1,508,882 276,203 1,785,085 $ 2,477,738 $ 1,183,093 $ 3,660,831 __________________________ (1) Presented in accordance with Topic 605. Our customer sales are diversified geographically. The following table presents our revenues disaggregated by geography, based on the shipping addresses of our customers: December 31, 2019 (Amounts in thousands) FPD FCD Total North America(1) $ 1,085,627 $ 543,986 $ 1,629,613 Latin America(1) 202,247 28,899 231,146 Middle East and Africa 355,937 98,959 454,896 Asia Pacific 499,932 319,235 819,167 Europe 560,702 249,326 810,028 $ 2,704,445 $ 1,240,405 $ 3,944,850 December 31, 2018 (Amounts in thousands) FPD FCD Total North America(1) $ 1,037,637 $ 540,316 $ 1,577,953 Latin America(1) 219,376 22,405 241,781 Middle East and Africa 329,484 138,240 467,724 Asia Pacific 502,559 279,109 781,668 Europe 531,432 232,108 763,540 $ 2,620,488 $ 1,212,178 $ 3,832,666 December 31, 2017 (2) (Amounts in thousands) FPD FCD Total North America(1) $ 969,417 $ 477,275 $ 1,446,692 Latin America(1) 168,971 33,207 202,178 Middle East and Africa 327,366 155,447 482,813 Asia Pacific 445,001 239,197 684,198 Europe 566,983 277,967 844,950 $ 2,477,738 $ 1,183,093 $ 3,660,831 _____________________________________ (1) North America represents United States and Canada; Latin America includes Mexico. (2) Presented in accordance with Topic 605. |
Contract with Customer, Asset and Liability | The following table presents opening and closing balances of contract assets and contract liabilities, current and long-term, for the years ended December 31, 2019 and 2018: ( Amounts in thousands) Contract Assets, net (Current) Long-term Contract Assets, net(1) Contract Liabilities (Current) Long-term Contract Liabilities(2) Balance — January 1, 2018 $ 219,361 $ 3,990 $ 178,515 $ 3,925 Revenue recognized that was included in contract liabilities at the beginning of the period — — (123,458 ) (1,360 ) Increase due to revenue recognized in the period in excess of billings 846,922 6,668 — — Increase due to billings arising during the period in excess of revenue recognized — — 152,664 (481 ) Amounts transferred from contract assets to receivables (815,213 ) (2,503 ) — — Currency effects and other, net (22,491 ) 2,812 (5,263 ) (714 ) Balance — December 31, 2018 $ 228,579 $ 10,967 $ 202,458 $ 1,370 Revenue recognized that was included in contract liabilities at the beginning of the period — — (125,274 ) — Increase due to revenue recognized in the period in excess of billings 835,147 — — — Increase due to billings arising during the period in excess of revenue recognized — — 135,695 290 Amounts transferred from contract assets to receivables (785,279 ) (1,747 ) — — Currency effects and other, net (5,533 ) 60 3,662 (8 ) Balance — December 31, 2019 $ 272,914 $ 9,280 $ 216,541 $ 1,652 _____________________________________ (1) Included in other assets, net. |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2018 are as follows: FPD FCD Total (Amounts in thousands) Balance as of December 31, 2017 $ 801,509 $ 416,679 $ 1,218,188 Currency translation and other (11,370 ) (9,178 ) (20,548 ) Balance as of December 31, 2018 $ 790,139 $ 407,501 $ 1,197,640 Currency translation and other (3,509 ) (1,121 ) (4,630 ) Balance as of December 31, 2019 $ 786,630 $ 406,380 $ 1,193,010 |
Schedule of Changes in Intangible Assets | The following table provides information about our intangible assets for the years ended December 31, 2019 and 2018 : December 31, 2019 December 31, 2018 Useful Life (Years) Ending Gross Amount Accumulated Amortization Ending Gross Amount Accumulated Amortization (Amounts in thousands, except years) Finite-lived intangible assets: Engineering drawings(1) 10-22 $ 89,490 $ (78,854 ) $ 89,796 $ (75,239 ) Existing customer relationships(2) 5-10 81,844 (53,468 ) 82,235 (47,016 ) Patents 9-16 26,132 (26,132 ) 26,251 (26,136 ) Other 4-40 92,920 (40,149 ) 88,138 (37,145 ) $ 290,386 $ (198,603 ) $ 286,420 $ (185,536 ) Indefinite-lived intangible assets(3) $ 90,607 $ (1,585 ) $ 91,251 $ (1,585 ) ____________________________________ (1) Engineering drawings represent the estimated fair value associated with specific acquired product and component schematics. (2) Existing customer relationships acquired prior to 2011 had a useful life of five years . (3) Accumulated amortization for indefinite-lived intangible assets relates to amounts recorded prior to the implementation date of guidance issued in ASC 350. |
Schedule of Actual and Estimated Future Amortization of Finite-Lived Intangible Assets | The following schedule outlines actual amortization expense recognized during 2019 and an estimate of future amortization based upon the finite-lived intangible assets owned at December 31, 2019 : Amortization Expense (Amounts in thousands) Actual for year ended December 31, 2019 $ 13,769 Estimated for year ended December 31, 2020 13,637 Estimated for year ended December 31, 2021 13,183 Estimated for year ended December 31, 2022 10,666 Estimated for year ended December 31, 2023 8,402 Estimated for year ended December 31, 2024 6,428 Thereafter 39,467 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Inventories, net consisted of the following: December 31, 2019 2018 (Amounts in thousands) Raw materials $ 328,080 $ 310,204 Work in process 192,993 191,660 Finished goods 218,408 205,814 Less: Excess and obsolete reserve (78,644 ) (73,807 ) Inventories, net $ 660,837 $ 633,871 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of Other Lease Information | Other information related to our leases is as follows: December 31, (Amounts in thousands) 2019 Operating Leases: ROU assets recorded under operating leases $ 220,865 Accumulated amortization associated with operating leases (34,647 ) Total operating leases ROU assets, net $ 186,218 Liabilities recorded under operating leases (current) $ 36,108 Liabilities recorded under operating leases (non-current) 151,523 Total operating leases liabilities $ 187,631 Finance Leases: ROU assets recorded under finance leases $ 19,606 Accumulated depreciation associated with finance leases (7,551 ) Total finance leases ROU assets, net(1) $ 12,055 Total finance leases liabilities(2) $ 11,788 The costs components of operating and finance leases are as follows: December 31, (Amounts in thousands) 2019 Operating Lease Costs: Fixed lease expense(3) $ 57,450 Variable lease expense(3) 6,492 Total operating lease expense $ 63,942 Finance Lease Costs: Depreciation of finance lease ROU assets(3) $ 4,729 Interest on lease liabilities(4) 352 Total finance lease expense $ 5,081 _____________________ (1) Included in property plant and equipment, net (2) Included in debt due within one year and long-term debt due after one year, accordingly (3) Included in cost of sales and selling, general and administrative expense, accordingly (4) Included in interest expense |
Schedule of Supplemental Cash Flows Information | Supplemental cash flows information as of and for the year ended December 31, 2019 : (Amounts in thousands, except lease term and discount rate) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases(1) $ 64,725 Financing cash flows from finance leases(2) 4,465 ROU assets obtained in exchange for lease obligations: Operating leases $ 14,569 Finance leases 10,615 Weighted average remaining lease term (in years) Operating leases 9 years Finance leases 3 years Weighted average discount rate (percent) Operating leases 4.5 % Finance leases 3.6 % _____________________ (1) Included in our consolidated statement of cash flows, operating activities, prepaid expenses and other assets, net and retirement obligations and other (2) Included in our consolidated statement of cash flows, financing activities, payments under other financing arrangements |
Schedule of Future Finance Lease Payments | Future undiscounted lease payments under operating and finance leases as of December 31, 2019 , were as follows (amounts in thousands): Year ending December 31, Operating Leases Finance Leases 2020 42,164 4,897 2021 32,762 3,660 2022 27,378 2,417 2023 23,120 1,101 2024 18,160 277 Thereafter 84,742 96 Total future minimum lease payments $ 228,326 $ 12,448 Less: Imputed interest (40,695 ) (660 ) Total $ 187,631 $ 11,788 Other current liabilities $ 36,108 $ — Operating lease liabilities 151,523 — Debt due within one year — 4,622 Long-term debt due after one year — 7,166 Total $ 187,631 $ 11,788 The future minimum lease payments as of December 31, 2018 were as follows (amounts in thousands): Year ending December 31, 2019 $ 68,443 2020 49,874 2021 38,446 2022 28,496 2023 21,473 Thereafter 66,518 Total future minimum lease payments $ 273,250 |
Schedule of Future Operating Lease Payments | Future undiscounted lease payments under operating and finance leases as of December 31, 2019 , were as follows (amounts in thousands): Year ending December 31, Operating Leases Finance Leases 2020 42,164 4,897 2021 32,762 3,660 2022 27,378 2,417 2023 23,120 1,101 2024 18,160 277 Thereafter 84,742 96 Total future minimum lease payments $ 228,326 $ 12,448 Less: Imputed interest (40,695 ) (660 ) Total $ 187,631 $ 11,788 Other current liabilities $ 36,108 $ — Operating lease liabilities 151,523 — Debt due within one year — 4,622 Long-term debt due after one year — 7,166 Total $ 187,631 $ 11,788 The future minimum lease payments as of December 31, 2018 were as follows (amounts in thousands): Year ending December 31, 2019 $ 68,443 2020 49,874 2021 38,446 2022 28,496 2023 21,473 Thereafter 66,518 Total future minimum lease payments $ 273,250 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | Information related to stock options issued to officers, other employees and directors under all plans is presented in the following table: 2019 2018 2017 Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Shares Weighted Average Exercise Price Number of shares under option: Outstanding — beginning of year 114,943 $ 48.63 114,943 $ 48.63 — $ — Granted — — — — 114,943 48.63 Exercised — — — — — — Canceled — — — — — — Outstanding — end of year 114,943 $ 48.63 114,943 $ 48.63 114,943 $ 48.63 Exercisable — end of year — $ — — $ — — $ — |
Schedule of Stock-Based Compensation | We recorded stock-based compensation for Restricted Shares as follows: Year Ended December 31, 2019 2018 2017 (Amounts in millions) Stock-based compensation expense $ 23.9 $ 19.9 $ 22.8 Related income tax benefit (5.4 ) (4.5 ) (5.2 ) Net stock-based compensation expense $ 18.5 $ 15.4 $ 17.6 |
Information Regarding Restricted Shares | The following table summarizes information regarding Restricted Shares: Year Ended December 31, 2019 Shares Weighted Average Grant-Date Fair Value Number of unvested Restricted Shares: Outstanding — beginning of year 1,530,214 $ 45.06 Granted 857,116 46.80 Vested (392,152 ) 42.82 Canceled (304,578 ) 43.66 Outstanding — ending of year 1,690,600 $ 46.71 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
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 contracts are summarized below: Year Ended December 31, 2019 2018 (Amounts in thousands) Current derivative assets $ 892 $ 535 Noncurrent derivative assets 15 5 Current derivative liabilities 3,418 3,285 Noncurrent derivative liabilities 8 2 |
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 contracts are summarized below: Year Ended December 31, 2019 2018 2017 (Amounts in thousands) Gain (loss) recognized in income $ (6,495 ) $ (3,154 ) $ 2,122 |
Details of Certain Consolidat_2
Details of Certain Consolidated Balance Sheet Captions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Details of Certain Consolidated Balance Sheet Captions [Abstract] | |
Accounts Receivable, net | Accounts receivable, net were: December 31, 2019 2018 (Amounts in thousands) Accounts receivable $ 848,950 $ 843,935 Less: allowance for doubtful accounts (53,412 ) (51,501 ) Accounts receivable, net $ 795,538 $ 792,434 |
Property, Plant and Equipment, net | Property, plant and equipment, net were: December 31, 2019 2018 (Amounts in thousands) Land $ 64,778 $ 72,701 Buildings and improvements 419,454 441,006 Machinery, equipment and tooling 666,376 634,838 Software, furniture and fixtures and other 434,774 418,185 Gross property, plant and equipment 1,585,382 1,566,730 Less: accumulated depreciation (1,013,207 ) (956,634 ) Property, plant and equipment, net $ 572,175 $ 610,096 |
Accrued Liabilities | Accrued liabilities were: December 31, 2019 2018 (Amounts in thousands) Wages, compensation and other benefits $ 192,354 $ 198,311 Commissions and royalties 23,027 19,673 Warranty costs and late delivery penalties 30,625 31,683 Sales and use tax 18,146 14,486 Income tax 20,018 9,865 Other 117,215 117,388 Accrued liabilities $ 401,385 $ 391,406 |
Retirement Obligations and Other Liabilities | Retirement obligations and other liabilities were: December 31, 2019 2018 (Amounts in thousands) Pension and postretirement benefits $ 199,603 $ 183,012 Deferred taxes 163,084 159,404 Operating lease liabilities 151,523 — Legal and environmental 28,593 21,949 Uncertain tax positions and other tax liabilities 42,086 57,553 Other 39,929 37,775 Retirement obligations and other liabilities $ 624,818 $ 459,693 |
Debt and Finance Lease Obliga_2
Debt and Finance Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Including Finance Lease Obligations | Debt, including finance lease obligations, consisted of: December 31, 2019 2018 (Amounts in thousands) 1.25% EUR Senior Notes due March 17, 2022, net of unamortized discount and debt issuance costs of $2,653 and $3,914 at December 31, 2019 and 2018, respectively $ 557,847 $ 569,536 3.50% USD Senior Notes due September 15, 2022, net of unamortized discount and debt issuance costs of $1,924 and $2,589 at December 31, 2019 and 2018, respectively 498,076 497,411 4.00% USD Senior Notes due November 15, 2023, net of unamortized discount and debt issuance costs of $1,777 and $2,192 at December 31, 2019 and 2018, respectively 298,223 297,808 Term Loan Facility, interest rate of 4.30% at December 31, 2018, net of debt issuance costs of $249 — 104,751 Finance lease obligations and other borrowings 23,103 13,541 Debt and finance lease obligations 1,377,249 1,483,047 Less amounts due within one year 11,272 68,218 Total debt due after one year $ 1,365,977 $ 1,414,829 |
Schedule Maturities of the Senior Credit Facility as well as our Senior Notes and other debt | Scheduled maturities of our Senior Notes and other debt, are (amounts in thousands): 2020 $ 11,272 2021 11,831 2022 1,055,923 2023 298,223 Total $ 1,377,249 |
Pension and Postretirement Be_2
Pension and Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Assumptions Related to Plans | The following are assumptions related to the U.S. defined benefit pension plans: Year Ended December 31, 2019 2018 2017 Weighted average assumptions used to determine Benefit Obligations: Discount rate 3.41 % 4.34 % 3.63 % Rate of increase in compensation levels 3.50 3.50 4.01 Weighted average assumptions used to determine net pension expense: Long-term rate of return on assets 6.00 % 6.00 % 6.00 % Discount rate 4.34 3.63 4.00 Rate of increase in compensation levels 3.50 4.01 4.01 The following are assumptions related to postretirement benefits: Year Ended December 31, 2019 2018 2017 Weighted average assumptions used to determine Benefit Obligation: Discount rate 3.27 % 4.20 % 3.48 % Weighted average assumptions used to determine net expense: Discount rate 4.20 % 3.48 % 3.75 % The following are assumptions related to the non-U.S. defined benefit pension plans: Year Ended December 31, 2019 2018 2017 Weighted average assumptions used to determine Benefit Obligations: Discount rate 1.61 % 2.42 % 2.25 % Rate of increase in compensation levels 3.12 3.28 3.25 Weighted average assumptions used to determine net pension expense: Long-term rate of return on assets 3.37 % 3.62 % 3.88 % Discount rate 2.42 2.25 2.34 Rate of increase in compensation levels 3.28 3.25 3.22 |
Components of Net Periodic Cost for Pension and Postretirement Benefits | Net postretirement benefit cost for postretirement medical plans was: Year Ended December 31, 2019 2018 2017 (Amounts in thousands) Interest cost $ 754 $ 779 $ 919 Amortization of unrecognized prior service cost 122 122 122 Amortization of unrecognized net gain (215 ) (764 ) (275 ) Net postretirement benefit expense $ 661 $ 137 $ 766 Net pension expense for non-U.S. defined benefit pension plans was: Year Ended December 31, 2019 2018 2017 (Amounts in thousands) Service cost $ 5,728 $ 7,208 $ 7,247 Interest cost 8,867 8,970 9,320 Expected return on plan assets (7,535 ) (8,747 ) (8,834 ) Amortization of unrecognized net loss 2,933 3,626 3,741 Amortization of unrecognized prior service cost (benefit) 265 33 (4 ) Settlement loss (gain) and other 859 (521 ) 2,434 Non-U.S. net pension expense $ 11,117 $ 10,569 $ 13,904 Net pension expense for the U.S. defined benefit pension plans (including both qualified and non-qualified plans) was: Year Ended December 31, 2019 2018 2017 (Amounts in thousands) Service cost $ 23,245 $ 22,195 $ 22,257 Interest cost 17,584 15,789 16,878 Expected return on plan assets (25,645 ) (25,704 ) (24,505 ) Settlement gain — (462 ) (216 ) Amortization of unrecognized prior service cost 164 164 112 Amortization of unrecognized net loss 3,675 5,514 6,021 U.S. net pension expense $ 19,023 $ 17,496 $ 20,547 |
Schedule of Funded Status | The following summarizes the net pension (liability) asset for U.S. plans: December 31, 2019 2018 (Amounts in thousands) Plan assets, at fair value $ 482,553 $ 425,792 Benefit Obligation (471,462 ) (432,595 ) Funded status $ 11,091 $ (6,803 ) The following summarizes the accrued postretirement benefits liability for the postretirement medical plans: December 31, 2019 2018 (Amounts in thousands) Postretirement Benefit Obligation $ 18,862 $ 18,810 Funded status $ (18,862 ) $ (18,810 ) The following summarizes the net pension liability for non-U.S. plans: December 31, 2019 2018 (Amounts in thousands) Plan assets, at fair value $ 262,559 $ 232,175 Benefit Obligation (425,617 ) (376,649 ) Funded status $ (163,058 ) $ (144,474 ) |
Schedule of Amounts Recognized in Balance Sheet | The following summarizes amounts recognized in the balance sheet for postretirement Benefit Obligation: December 31, 2019 2018 (Amounts in thousands) Current liabilities $ (2,370 ) $ (2,500 ) Noncurrent liabilities (16,492 ) (16,310 ) Funded status $ (18,862 ) $ (18,810 ) The following summarizes amounts recognized in the balance sheet for non-U.S. plans: December 31, 2019 2018 \ (Amounts in thousands) Noncurrent assets $ 16,379 $ 17,864 Current liabilities (7,609 ) (7,782 ) Noncurrent liabilities (171,828 ) (154,556 ) Funded status $ (163,058 ) $ (144,474 ) The following summarizes amounts recognized in the balance sheet for U.S. plans: December 31, 2019 2018 (Amounts in thousands) Noncurrent assets $ 16,396 $ — Current liabilities (348 ) (232 ) Noncurrent liabilities (4,957 ) (6,571 ) Funded status $ 11,091 $ (6,803 ) |
Schedule of Benefit Obligations and Accumulated Benefit Obligations | The following is a reconciliation of the postretirement Benefit Obligation: December 31, 2019 2018 (Amounts in thousands) Balance — January 1 $ 18,810 $ 23,882 Interest cost 754 779 Employee contributions 964 883 Medicare subsidies receivable 14 127 Actuarial loss (gain) 2,222 (2,662 ) Net benefits and expenses paid (3,902 ) (4,199 ) Balance — December 31 $ 18,862 $ 18,810 The following is a summary of the changes in the U.S. defined benefit plans’ pension obligations: December 31, 2019 2018 (Amounts in thousands) Balance — January 1 $ 432,595 $ 461,355 Service cost 23,245 22,195 Interest cost 17,584 15,789 Plan amendments and settlements 276 (3,016 ) Actuarial loss (gain) (1) 31,214 (25,908 ) Benefits paid (33,452 ) (37,820 ) Balance — December 31 $ 471,462 $ 432,595 Accumulated benefit obligations at December 31 $ 470,643 $ 431,973 _______________________________________ (1) The actuarial losses (gain) in 2019 and 2018 primarily reflect the impact of changes in the discount rate. The following is a reconciliation of the non-U.S. plans’ defined benefit pension obligations: December 31, 2019 2018 (Amounts in thousands) Balance — January 1 $ 376,649 $ 413,960 Service cost 5,728 7,208 Interest cost 8,867 8,970 Employee contributions 78 238 Settlements and other (3,713 ) (7,896 ) Actuarial loss (gain)(1) 48,888 (8,839 ) Net benefits and expenses paid (14,526 ) (16,632 ) Currency translation impact(2) 3,646 (20,360 ) Balance — December 31 $ 425,617 $ 376,649 Accumulated benefit obligations at December 31 $ 404,035 $ 356,989 _______________________________________ (1) The 2019 actuarial loss primarily reflects the decrease in the discount rates for all plans. (2) |
Schedule of Expected Cash Activity | The following table summarizes the expected cash benefit payments for the non-U.S. defined benefit plans in the future (amounts in millions): 2020 $ 16.5 2021 17.0 2022 17.8 2023 17.9 2024 18.7 2025-2029 97.3 The following table summarizes the expected cash benefit payments for the U.S. defined benefit pension plans in the future (amounts in millions): 2020 $ 42.8 2021 44.0 2022 41.9 2023 42.9 2024 42.1 2025-2029 196.8 The following presents expected benefit payments for future periods (amounts in millions): Expected Payments 2020 $ 2.4 2021 2.3 2022 2.1 2023 1.9 2024 1.7 2025-2029 6.6 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table shows the change in accumulated other comprehensive loss attributable to the components of the net cost and the change in Benefit Obligations for postretirement benefits, net of tax: 2019 2018 (Amounts in thousands) Balance — January 1 $ 2,425 $ 880 Amortization of net gain (164 ) (584 ) Amortization of prior service cost 94 93 Net (loss) gain arising during the year (1,699 ) 2,036 Balance — December 31 $ 656 $ 2,425 Amounts recorded in accumulated other comprehensive loss consist of: December 31, 2019 2018 (Amounts in thousands) Unrecognized net gain $ 1,512 $ 3,365 Unrecognized prior service cost (856 ) (940 ) Accumulated other comprehensive income, net of tax $ 656 $ 2,425 The following table shows the change in accumulated other comprehensive loss attributable to the components of the net cost and the change in Benefit Obligations for non-U.S. plans, net of tax: December 31, 2019 2018 (Amounts in thousands) Balance — January 1 $ (62,088 ) $ (67,872 ) Amortization of net loss 2,946 3,260 Net (loss) gain arising during the year (29,910 ) 2,458 Settlement loss (gain) 746 (386 ) Prior service cost arising during the year — (3,080 ) Currency translation impact and other (1,031 ) 3,532 Balance — December 31 $ (89,337 ) $ (62,088 ) Amounts recorded in accumulated other comprehensive loss consist of: December 31, 2019 2018 (Amounts in thousands) Unrecognized net loss $ (85,891 ) $ (58,697 ) Unrecognized prior service cost (3,446 ) (3,391 ) Accumulated other comprehensive loss, net of tax $ (89,337 ) $ (62,088 ) The following table shows the change in accumulated other comprehensive loss attributable to the components of the net cost and the change in Benefit Obligations for U.S. plans, net of tax: December 31, 2019 2018 (Amounts in thousands) Balance — January 1 $ (62,018 ) $ (49,790 ) Amortization of net loss 2,809 4,216 Amortization of prior service cost 125 125 Net gain (loss) arising during the year 9,785 (16,216 ) Settlement gain — (353 ) Prior service cost arising during the year (211 ) — Balance — December 31 $ (49,510 ) $ (62,018 ) Amounts recorded in accumulated other comprehensive loss consist of: December 31, 2019 2018 (Amounts in thousands) Unrecognized net loss $ (48,578 ) $ (61,129 ) Unrecognized prior service cost (932 ) (889 ) Accumulated other comprehensive loss, net of tax $ (49,510 ) $ (62,018 ) |
Reconciliation of Plan Assets | The following is a reconciliation of the non-U.S. plans’ defined benefit pension assets: December 31, 2019 2018 (Amounts in thousands) Balance — January 1 $ 232,175 $ 248,733 Return (loss) on plan assets 23,793 (580 ) Employee contributions 78 238 Company contributions 16,782 21,696 Settlements (3,688 ) (7,776 ) Currency translation impact and other 7,945 (13,504 ) Net benefits and expenses paid (14,526 ) (16,632 ) Balance — December 31 $ 262,559 $ 232,175 The following is a reconciliation of the U.S. defined benefit pension plans’ assets: December 31, 2019 2018 (Amounts in thousands) Balance — January 1 $ 425,792 $ 464,779 Return on plan assets 69,663 (21,414 ) Company contributions 20,552 23,263 Benefits paid (33,454 ) (37,820 ) Settlements — (3,016 ) Balance — December 31 $ 482,553 $ 425,792 |
Allocation of Plan Assets | The fair values of the non-U.S. assets were: At December 31, 2019 At December 31, 2018 Hierarchical Levels Hierarchical Levels Total I II III Total I II III (Amounts in thousands) (Amounts in thousands) Cash $ 5,026 $ 5,026 $ — — $ 15,105 $ 15,105 $ — $ — Commingled Funds: Equity securities North American Companies(a) 2,501 — 2,501 — 6,603 — 6,603 — Global Equity(b) 2,411 — 2,411 — 4,648 — 4,648 — Fixed income securities U.K. Government Gilt Index(c) 113,855 — 113,855 — 99,482 — 99,482 — U.K. Corporate Bond Index — — — — 1,192 — 1,192 — Global Fixed Income Bond — — — — 4,110 — 4,110 — Liability-Driven Investment(d) 20,011 — 20,011 — 20,004 — 20,004 — Other Types of Investments: Multi-asset(e) 48,964 — 48,964 — 44,147 — 44,147 — Buy-in Contracts(f) 54,544 — — 54,544 23,616 — — 23,616 Other(g) 15,247 — — 15,247 13,268 — — 13,268 $ 262,559 $ 5,026 $ 187,742 $ 69,791 $ 232,175 $ 15,105 $ 180,186 $ 36,884 _______________________________________ (a) North American Companies represents U.S. and Canadian large cap equity funds, which are managed to track their respective benchmarks (FTSE All-World USA Index and FTSE All-World Canada Index). (b) Global Equity represents actively managed global equity funds, taking a top-down strategic view on the different regions by analyzing companies based on fundamentals, market-driven, thematic and quantitative factors to generate alpha. (c) U.K. Government Gilt Index represents U.K. government issued fixed income investments which are passively managed to track their respective benchmarks. (d) LDI seeks to invest in fixed income securities that collectively closely match those found in discount curves used to value the plan's liabilities. (e) Multi-asset seeks an attractive risk-adjusted return by investing in a diversified portfolio of strategies, including equities and fixed income. (f) The Buy-in Contracts ("Contract" or "Contracts") represent assets held by plans, whereby the cost of providing benefits to plan participants is funded by the Contract. The Contracts are held by the plans for the benefit of plan participants in the Netherlands and U.K. The fair value of these assets are based on the current present value of accrued benefits and will fluctuate based on changes in the obligations associated with covered plan members as well as the assumptions used in the present value calculation. The fair value of asset held in the Netherlands Contract as of January 1, 2019 was $23.6 million , with contributions and currency adjustments resulting in a fair value of $25.9 million at December 31, 2019 . On August 29, 2019, we established a Contract for our U.K. plan participants with initial investment of $27.4 million , with contributions and currency adjustments resulting in a fair value of $28.6 million at December 31, 2019. (g) The asset allocations for the non-U.S. defined benefit pension plans at the end of 2019 and 2018 are as follows: Target Allocation at December 31, Percentage of Actual Plan Assets at December 31, Asset category 2019 2018 2019 2018 Cash and cash equivalents 2 % 7 % 2 % 7 % Cash and cash equivalents 2 % 7 % 2 % 7 % North American Companies 1 % 3 % 1 % 3 % Global Equity 1 % 2 % 1 % 2 % Equity securities 2 % 5 % 2 % 5 % U.K. Government Gilt Index 43 % 43 % 43 % 43 % Global Fixed Income Bond — % 2 % — % 2 % Liability-Driven Investment 7 % 9 % 7 % 9 % Fixed income 50 % 54 % 50 % 54 % Multi-asset 19 % 19 % 19 % 19 % Buy-in Contracts 21 % 10 % 21 % 10 % Other 6 % 5 % 6 % 5 % Other types 46 % 34 % 46 % 34 % 2019 and 2018 by asset category, are as follows: Target Allocation at December 31, Percentage of Actual Plan Assets at December 31, Asset category 2019 2018 2019 2018 Cash and cash equivalents — % — % 1 % 1 % Cash and cash equivalents — % — % 1 % 1 % Global Equity 31 % 30 % 28 % 30 % Global Real Assets 12 % 13 % 12 % 13 % Equity securities 43 % 43 % 40 % 43 % Diversified Credit 12 % 12 % 12 % 13 % Liability-Driven Investment 45 % 45 % 47 % 43 % Fixed income 57 % 57 % 59 % 56 % The plan’s financial instruments, shown below, are presented at fair value. See Note 1 for further discussion on how the hierarchical levels of the fair values of the Plan’s investments are determined. The fair values of our U.S. defined benefit plan assets were: At December 31, 2019 At December 31, 2018 Hierarchical Levels Hierarchical Levels Total I II III Total I II III (Amounts in thousands) (Amounts in thousands) Cash and cash equivalents $ 4,994 $ 4,994 $ — $ — $ 4,778 $ 4,778 $ — $ — Commingled Funds: Equity securities Global Equity(a) 135,350 — 135,350 — 126,165 — 126,165 — Global Real Assets(b) 60,523 — 60,523 — 55,046 — 55,046 — Fixed income securities Diversified Credit(c) 56,375 — 56,375 — 55,039 — 55,039 — Liability-Driven Investment(d) 225,311 — 225,311 — 184,764 — 184,764 — $ 482,553 $ 4,994 $ 477,559 $ — $ 425,792 $ 4,778 $ 421,014 $ — _______________________________________ (a) Global Equity fund seeks to closely track the performance of the MSCI All Country World Index. (b) Global Real Asset funds seek to provide exposure to the listed global real estate investment trusts (REITs) and infrastructure markets. (c) Diversified Credit funds seek to provide exposure to the high yield, emerging markets, bank loans and securitized credit markets. (d) Liability-Driven Investment ("LDI") funds seek to invest in high quality fixed income securities that collectively closely match those found in discount curves used to value the plan's liabilities. |
Schedule of Benefit Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets | The following summarizes key pension plan information regarding U.S. and non-U.S. plans whose accumulated benefit obligations exceed the fair value of their respective plan assets. December 31, 2019 2018 (Amounts in thousands) Benefit Obligation $ 229,793 $ 613,441 Accumulated benefit obligation 212,906 596,584 Fair value of plan assets 46,718 444,929 |
Warranty Reserve (Tables)
Warranty Reserve (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Activity in the Warranty Reserve | The following is a summary of the activity in the warranty reserve: 2019 2018 2017 (Amounts in thousands) Balance — January 1 $ 32,033 $ 33,601 $ 30,459 Accruals for warranty expense, net of adjustments 26,215 28,454 35,001 Settlements made (27,394 ) (30,022 ) (31,859 ) Balance — December 31 $ 30,854 $ 32,033 $ 33,601 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes consists of the following: Year Ended December 31, 2019 2018 2017 (Amounts in thousands) Current: U.S. federal $ 22,001 $ 5,150 $ 59,292 Foreign 61,976 36,897 22,442 State and local 4,506 2,647 5,537 Total current 88,483 44,694 87,271 Deferred: U.S. federal 2,933 11,242 135,294 Foreign (12,243 ) (4,585 ) 34,626 State and local 897 (127 ) 1,488 Total deferred (8,413 ) 6,530 171,408 Total provision $ 80,070 $ 51,224 $ 258,679 |
Schedule of Reconciliation Statutory Corporate Rate to Provision for Income Taxes | The provision for income taxes differs from the statutory corporate rate due to the following: Year Ended December 31, 2019 2018 2017 (Amounts in millions) Statutory federal income tax at 21% (21% for 2018 and 35% for 2017) $ 71.8 $ 37.0 $ 92.1 Foreign impact, net 4.5 (5.9 ) (36.4 ) Impact of U.S. Tax Reform Act — (5.7 ) 115.3 Change in valuation allowances 0.3 15.7 73.6 State and local income taxes, net 5.4 3.7 4.9 Other, net (1.9 ) 6.4 9.2 Total $ 80.1 $ 51.2 $ 258.7 Effective tax rate 23.4 % 29.1 % 98.4 % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the consolidated deferred tax assets and liabilities were: December 31, 2019 2018 (Amounts in thousands) Deferred tax assets related to: Retirement benefits $ 25,214 $ 26,496 Net operating loss carryforwards 101,193 92,630 Compensation accruals 24,685 25,993 Inventories 33,773 25,553 Credit and capital loss carryforwards 131,744 16,056 Warranty and accrued liabilities 7,042 2,763 Bad debt reserve 30,884 28,194 Other 25,339 32,253 Total deferred tax assets 379,874 249,938 Valuation allowances (266,414 ) (133,929 ) Net deferred tax assets 113,460 116,009 Deferred tax liabilities related to: Property, plant and equipment (26,545 ) (18,773 ) Goodwill and intangibles (114,567 ) (123,692 ) Foreign undistributed earnings taxes (67,930 ) (70,331 ) Other (12,623 ) (17,935 ) Total deferred tax liabilities (221,665 ) (230,731 ) Deferred tax liabilities, net $ (108,205 ) $ (114,722 ) |
Schedule of Earnings Before Income Tax | Earnings before income taxes comprised: Year Ended December 31, 2019 2018 2017 (Amounts in thousands) U.S. $ 129,917 $ 88,674 $ 102,372 Foreign 211,933 87,600 160,635 Total $ 341,850 $ 176,274 $ 263,007 |
Reconciliation of Unrecognized Tax Benefits | A tabular reconciliation of the total gross amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in millions): 2019 2018 2017 Balance — January 1 $ 41.2 $ 51.5 $ 59.3 Gross amount of increase (decrease) in unrecognized tax benefits resulting from tax positions taken: During a prior year 8.8 (6.6 ) (3.5 ) During the current period 6.3 4.0 5.5 Decreases in unrecognized tax benefits relating to: Settlements with taxing authorities (11.4 ) (2.7 ) (10.8 ) Lapse of the applicable statute of limitations (3.2 ) (3.7 ) (3.1 ) (Decrease) increase in unrecognized tax benefits relating to foreign currency translation adjustments (1.1 ) (1.3 ) 4.1 Balance — December 31 $ 40.6 $ 41.2 $ 51.5 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summarized Financial Information of Reportable Segments | The following is a summary of the financial information of our reportable segments as of and for the years ended December 31, 2019 , 2018 and 2017 reconciled to the amounts reported in the consolidated financial statements. Subtotal—Reportable Segments Eliminations and All Other Consolidated Total FPD FCD (Amounts in thousands) Year Ended December 31, 2019: Sales to external customers $2,704,445 $ 1,240,405 $ 3,944,850 $ — $ 3,944,850 Intersegment sales 1,833 3,631 5,464 (5,464 ) — Segment operating income (loss) 343,514 197,972 541,486 (135,446 ) 406,040 Depreciation and amortization 50,845 23,577 74,422 30,059 104,481 Identifiable assets 2,974,161 1,333,926 4,308,087 611,555 4,919,642 Capital expenditures 26,450 14,449 40,899 25,271 66,170 Subtotal—Reportable Segments Eliminations and All Other Consolidated Total FPD FCD (Amounts in thousands) Year Ended December 31, 2018: Sales to external customers $2,620,488 $ 1,212,178 $ 3,832,666 $ — $ 3,832,666 Intersegment sales 2,816 3,637 6,453 (6,453 ) — Segment operating income (loss) 200,981 201,216 402,197 (154,659 ) 247,538 Depreciation and amortization 68,148 26,585 94,733 17,740 112,473 Identifiable assets 2,768,879 1,268,717 4,037,596 578,681 4,616,277 Capital expenditures 40,648 14,458 55,106 28,887 83,993 Subtotal—Reportable Segments Eliminations and All Other Consolidated Total FPD FCD (Amounts in thousands) Year Ended December 31, 2017: Sales to external customers $ 2,477,738 $ 1,183,093 $ 3,660,831 $ — $ 3,660,831 Intersegment sales 970 5,018 5,988 (5,988 ) — Segment operating income (loss) 112,287 323,682 435,969 (94,834 ) 341,135 Depreciation and amortization 77,524 27,278 104,802 13,652 118,454 Identifiable assets 2,981,822 1,317,944 4,299,766 610,708 4,910,474 Capital expenditures 28,158 16,626 44,784 16,818 61,602 |
Schedule of Sales and Long-lived Assets by Geographic Area | Sales and long-lived assets by geographic area are as follows: Year Ended December 31, 2019 Sales Percentage Long-Lived Assets(a) Percentage (Amounts in thousands, except percentages) United States $ 1,637,736 41.5 % $ 464,216 47.1 % EMA(1) 1,397,308 35.4 % 312,668 31.7 % Asia(2) 551,759 14.0 % 143,848 14.6 % Other(3) 358,047 9.1 % 64,846 6.6 % Consolidated total $ 3,944,850 100.0 % $ 985,578 100.0 % __________________ (a) Includes ROU assets recorded under operating and finance leases based on our adoption of the New Lease Standard discussed in Note 4. Year Ended December 31, 2018 Sales Percentage Long-Lived Assets Percentage (Amounts in thousands, except percentages) United States $ 1,525,930 39.8 % $ 323,883 40.5 % EMA(1) 1,424,498 37.2 % 280,549 35.1 % Asia(2) 539,898 14.1 % 132,667 16.6 % Other(3) 342,340 8.9 % 63,161 7.8 % Consolidated total $ 3,832,666 100.0 % $ 800,260 100.0 % Year Ended December 31, 2017 Sales Percentage Long-Lived Assets Percentage (Amounts in thousands, except percentages) United States $ 1,460,899 40.0 % $ 333,126 38.2 % EMA(1) 1,434,506 39.2 % 321,256 36.9 % Asia(2) 471,054 12.9 % 148,757 17.1 % Other(3) 294,372 7.9 % 68,379 7.8 % Consolidated total $ 3,660,831 100.0 % $ 871,518 100.0 % ___________________________________ (1) "EMA" includes Europe, the Middle East and Africa. In 2019 , 2018 and 2017 , Germany accounted for approximately 6% , 7% and 10% , respectively, of consolidated long-lived assets. No other individual country within this group represents 10% or more of consolidated totals for any period presented. (2) "Asia" includes Asia and Australia. No individual country within this group represents 10% or more of consolidated totals for any period presented. (3) "Other" includes Canada and Latin America. No individual country within this group represents 10% or more of consolidated totals for any period presented. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Loss [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following presents the components of accumulated other comprehensive loss (AOCL), net of related tax effects: 2019 2018 (Amounts in thousands) Foreign currency translation items(1) Pension and other post-retirement effects Cash flow hedging activity Total(1) Foreign currency translation items(1) Pension and other post-retirement effects Cash flow hedging activity Total(1) Balance - January 1 $ (447,925 ) $ (120,647 ) $ (858 ) $ (569,430 ) $ (384,779 ) $ (115,755 ) $ (1,090 ) $ (501,624 ) Other comprehensive income (loss) before reclassifications 6,561 (22,523 ) 187 (15,775 ) (63,146 ) (12,022 ) 232 (74,936 ) Amounts reclassified from AOCL — 6,009 — 6,009 — 7,130 — 7,130 Net current-period other comprehensive income (loss) 6,561 (16,514 ) 187 (9,766 ) (63,146 ) (4,892 ) 232 (67,806 ) Balance - December 31 $ (441,364 ) $ (137,161 ) $ (671 ) $ (579,196 ) $ (447,925 ) $ (120,647 ) $ (858 ) $ (569,430 ) _______________________________________ (1) Includes foreign currency translation adjustments attributable to noncontrolling interests of $5.1 million , $4.5 million and $3.8 million for December 31, 2019 , 2018 and 2017 , respectively. For the year ended December 31, 2019 , foreign currency translation impacts primarily represented the weakening of the Euro, British pound, Chinese yuan and Indian rupee exchange rates versus the U.S. dollar for the period. For the year ended December 31, 2018 , foreign currency translation impacts primarily represented the weakening of the Euro, Argentine peso, Indian rupee and British pound exchange rates versus the U.S. dollar for the period. Includes net investment hedge cumulative losses of $12.1 million and $17.2 million , net of deferred taxes, at December 31, 2019 and 2018 , respectively. Amounts in parentheses indicate debits. |
Reclassifications from Accumulated Other Comprehensive Loss | The following table presents the reclassifications out of AOCL: (Amounts in thousands) Affected line item in the statement of income 2019(1) 2018(1) Pension and other postretirement effects Amortization of actuarial losses(2) Other income (expense), net $ (6,608 ) $ (9,140 ) Prior service costs(2) Other income (expense), net (429 ) (197 ) Settlements and other(2) Other income (expense), net (859 ) 983 Tax benefit 1,887 1,224 Net of tax $ (6,009 ) $ (7,130 ) ______________________________________ (1) Amounts in parentheses indicate decreases to income. None of the reclassification amounts have a noncontrolling interest component. (2) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 13 for additional details. |
Realignment and Transformatio_2
Realignment and Transformation Programs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | The following is a summary of total charges, net of adjustments, related to the Realignment and Flowserve 2.0 Transformation program charges : December 31, 2019 (Amounts in thousands) FPD FCD Subtotal–Reportable Segments Eliminations and All Other Consolidated Total Restructuring Charges COS $ 1,149 $ 2,653 $ 3,802 $ — $ 3,802 SG&A(1) (16,610 ) 556 (16,054 ) — (16,054 ) Income tax expense(2) (4,000 ) — (4,000 ) — (4,000 ) $ (19,461 ) $ 3,209 $ (16,252 ) $ — $ (16,252 ) Non-Restructuring Charges COS $ 11,438 $ 1,742 $ 13,180 $ 255 $ 13,435 SG&A 2,104 218 2,322 4,428 6,750 $ 13,542 $ 1,960 $ 15,502 $ 4,683 $ 20,185 Transformation Charges SG&A $ — $ — $ — $ 28,039 $ 28,039 $ — $ — $ — $ 28,039 $ 28,039 Total Realignment and Transformation Charges COS $ 12,587 $ 4,395 $ 16,982 $ 255 $ 17,237 SG&A (14,506 ) 774 (13,732 ) 32,467 18,735 Income tax expense(2) (4,000 ) — (4,000 ) — (4,000 ) Total $ (5,919 ) $ 5,169 $ (750 ) $ 32,722 $ 31,972 _____________________________ (1) Includes gains from the sales of non-strategic manufacturing facilities that are included in our Realignment Programs. (2) Income tax expense (benefit) includes exit taxes. December 31, 2018 (Amounts in thousands) FPD FCD Subtotal–Reportable Segments Eliminations and All Other Consolidated Total Restructuring Charges COS $ 18,405 $ 4,370 $ 22,775 $ — $ 22,775 SG&A 1,853 358 2,211 38 2,249 Income tax expense(1) (1,000 ) — (1,000 ) — (1,000 ) $ 19,258 $ 4,728 $ 23,986 $ 38 $ 24,024 Non-Restructuring Charges COS 21,072 $ (1,149 ) $ 19,923 $ — $ 19,923 SG&A 4,057 (652 ) 3,405 5,580 8,985 $ 25,129 $ (1,801 ) $ 23,328 $ 5,580 $ 28,908 Transformation Charges SG&A $ — $ — $ — $ 41,168 $ 41,168 $ — $ — $ — $ 41,168 $ 41,168 Total Realignment and Transformation Charges COS $ 39,477 $ 3,221 $ 42,698 $ — $ 42,698 SG&A 5,910 (294 ) 5,616 46,786 52,402 Income tax expense(1) (1,000 ) — (1,000 ) — (1,000 ) Total $ 44,387 $ 2,927 $ 47,314 $ 46,786 $ 94,100 ____________________________________ (1) Income tax expense (benefit) includes exit taxes as well as non-deductible costs. The following is a summary of total inception to date charges, net of adjustments, related to the Realignment Programs: Inception to Date (Amounts in thousands) FPD FCD Subtotal–Reportable Segments Eliminations and All Other Consolidated Total Restructuring Charges COS $ 110,191 $ 29,678 $ 139,869 $ — $ 139,869 SG&A 20,300 10,011 30,311 317 30,628 Income tax expense(1) 14,700 1,800 16,500 — 16,500 $ 145,191 $ 41,489 $ 186,680 $ 317 $ 186,997 Non-Restructuring Charges COS $ 79,922 $ 15,460 $ 95,382 $ 263 $ 95,645 SG&A 41,408 7,730 49,138 19,930 69,068 $ 121,330 $ 23,190 $ 144,520 $ 20,193 $ 164,713 Total Realignment Charges COS $ 190,113 $ 45,138 $ 235,251 $ 263 $ 235,514 SG&A 61,708 17,741 79,449 20,247 99,696 Income tax expense(1) 14,700 1,800 16,500 — 16,500 Total $ 266,521 $ 64,679 $ 331,200 $ 20,510 $ 351,710 ____________________________________ (1) Income tax expense (benefit) includes exit taxes as well as non-deductible costs. 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 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 the Realignment Programs: December 31, 2019 (Amounts in thousands) Severance Contract Termination Asset Write-Downs/(Gains) Other Total COS $ 2,183 $ 58 $ (1,782 ) $ 3,343 $ 3,802 SG&A(1) 2,211 — (18,429 ) 164 (16,054 ) Income tax expense(2) — — — (4,000 ) (4,000 ) Total $ 4,394 $ 58 $ (20,211 ) $ (493 ) $ (16,252 ) _________________________ (1) Primarily consists of gains from the sales of non-strategic manufacturing facilities that are included in our Realignment Programs. (2) Income tax expense (benefit) includes exit taxes. December 31, 2018 (Amounts in thousands) Severance Contract Termination Asset Write-Downs Other Total COS $ 2,975 $ 5 $ 9,018 $ 10,777 $ 22,775 SG&A 1,875 — 12 362 2,249 Income tax expense(1) — — — (1,000 ) (1,000 ) Total $ 4,850 $ 5 $ 9,030 $ 10,139 $ 24,024 _____________________________________ (1) Income tax expense (benefit) includes exit taxes as well as non-deductible costs. The following is a summary of total inception to date restructuring charges, net of adjustments, related to the Realignment Programs: Inception to Date (Amounts in thousands) Severance Contract Termination Asset Write-Downs Other Total (1) COS $ 87,343 $ 965 $ 22,553 $ 29,008 $ 139,869 SG&A 33,956 43 (16,740 ) 13,369 30,628 Income tax expense(1) — — — 16,500 16,500 Total $ 121,299 $ 1,008 $ 5,813 $ 58,877 $ 186,997 _______________________________ (1) Income tax expense (benefit) includes exit taxes as well as non-deductible costs. |
Schedule of Restructuring Reserve by Type of Cost | The following represents the activity, primarily severance, related to the restructuring reserve for the Realignment Programs for the years ended December 31, 2019 and 2018 : (Amounts in thousands) 2019 2018 Balance at January 1, $ 11,927 $ 39,230 Charges 7,958 15,996 Cash expenditures (12,865 ) (28,267 ) Other non-cash adjustments, including currency(1) (317 ) (15,032 ) Balance at December 31, $ 6,703 $ 11,927 _______________________________ (1) Includes a reduction of severance accruals associated with the divestiture of two FPD locations and associated product lines in 2018. Refer to Note 3 of this Annual Report for further discussion. |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Data [Abstract] | |
Summary of the Unaudited Quarterly Data | The following presents a summary of the unaudited quarterly data for 2019 and 2018 (amounts in millions, except per share data): 2019 Quarter 4th 3rd 2nd 1st Sales $ 1,068.2 $ 996.5 $ 990.1 $ 890.1 Gross profit 349.6 333.7 318.0 294.1 Earnings before income taxes 86.7 96.2 82.9 76.1 Net earnings attributable to Flowserve Corporation 69.8 68.4 58.2 57.3 Earnings per share(1): Basic $ 0.53 $ 0.52 $ 0.44 $ 0.44 Diluted 0.53 0.52 0.44 0.44 2018 Quarter 4th 3rd 2nd 1st Sales $ 986.9 $ 952.7 $ 973.1 $ 920.0 Gross profit 321.8 308.5 286.1 271.4 Earnings before income taxes 78.6 44.4 28.3 25.0 Net earnings attributable to Flowserve Corporation 63.1 28.2 13.2 15.1 Earnings per share(1): Basic $ 0.48 $ 0.22 $ 0.10 $ 0.12 Diluted 0.48 0.21 0.10 0.12 _______________________________________ (1) Earnings per share is computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in weighted average quarterly shares outstanding. |
Significant Accounting Polici_4
Significant Accounting Policies and Accounting Developments (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019USD ($)segments | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Resegmentation, number of reportable segments | segments | 1 | |||
Number of operating segments (in segments) | segments | 2 | |||
Interest ownership for cost method accounting (percentage) | 20.00% | |||
Subsidiary sales as a percentage of consolidated sales | 1.00% | |||
Subsidiary total assets as a percentage of consolidated assets | 2.00% | |||
Warranty obligations sales trend period (in months) | 24 months | |||
Research and Development [Abstract] | ||||
Research and development costs | $ 42 | $ 39.6 | $ 38.6 | |
Minimum | ||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Intangible asset, useful life (in years) | 4 years | |||
Maximum | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Remaining lease term | 34 years | |||
Finite-Lived Intangible Assets, Net [Abstract] | ||||
Intangible asset, useful life (in years) | 40 years | |||
Accounting Standards Update 2016-02 | ||||
Research and Development [Abstract] | ||||
Right-of-use asset | $ 225 | |||
Lease liabilities | $ 225 |
Significant Accounting Polici_5
Significant Accounting Policies and Accounting Developments (Estimated Useful Lives of Assets) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 10 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 40 years |
Machinery, equipment and tooling | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 3 years |
Machinery, equipment and tooling | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 14 years |
Software, furniture and fixtures and other | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 3 years |
Software, furniture and fixtures and other | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life (in years) | 7 years |
Significant Accounting Polici_6
Significant Accounting Policies and Accounting Developments (Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||||
Earnings per share: | |||||||||||||||||||
Net earnings of Flowserve Corporation | $ 69,800 | $ 68,400 | $ 58,200 | $ 57,300 | $ 63,100 | $ 28,200 | $ 13,200 | $ 15,100 | $ 253,668 | $ 119,671 | $ 2,652 | ||||||||
Dividends on restricted shares not expected to vest | 0 | 0 | 0 | ||||||||||||||||
Earnings attributable to common and participating shareholders | $ 253,668 | $ 119,671 | $ 2,652 | ||||||||||||||||
Weighted average shares: | |||||||||||||||||||
Common stock (in shares) | 131,012 | 130,794 | 130,600 | ||||||||||||||||
Participating securities (in shares) | 22 | 29 | 103 | ||||||||||||||||
Denominator for basic earnings per common share (in shares) | 131,034 | 130,823 | 130,703 | ||||||||||||||||
Effect of potentially dilutive securities (in shares) | 685 | 448 | 655 | ||||||||||||||||
Denominator for diluted earnings per common share (in shares) | 131,719 | 131,271 | 131,358 | ||||||||||||||||
Net earnings per share attributable to Flowserve Corporation common shareholders: | |||||||||||||||||||
Basic (in dollars per share) | $ 0.53 | [1] | $ 0.52 | [1] | $ 0.44 | [1] | $ 0.44 | [1] | $ 0.48 | [1] | $ 0.22 | [1] | $ 0.10 | [1] | $ 0.12 | [1] | $ 1.94 | $ 0.91 | $ 0.02 |
Diluted (in dollars per share) | $ 0.53 | [1] | $ 0.52 | [1] | $ 0.44 | [1] | $ 0.44 | [1] | $ 0.48 | [1] | $ 0.21 | [1] | $ 0.10 | [1] | $ 0.12 | [1] | $ 1.93 | $ 0.91 | $ 0.02 |
[1] | Earnings per share is computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in weighted average quarterly shares outstanding. |
Revenue Recognition (Details)
Revenue Recognition (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)segments | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Remaining performance obligation, amount | $ | $ 709 | ||
Number of operating segments (in segments) | segments | 2 | ||
Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of completion revenue | 4.00% | ||
Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of completion revenue | 10.00% | ||
Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from products and services percentage | 19.00% | 22.00% | 4.00% |
Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from products and services percentage | 81.00% | 78.00% | 96.00% |
Revenue Recognition (Performanc
Revenue Recognition (Performance Obligations) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 709 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 593 |
Remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 116 |
Remaining performance obligation, period | 1 year |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | $ 1,068,200 | $ 996,500 | $ 990,100 | $ 890,100 | $ 986,900 | $ 952,700 | $ 973,100 | $ 920,000 | $ 3,944,850 | $ 3,832,666 | $ 3,660,831 |
FPD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 2,704,445 | 2,620,488 | 2,477,738 | ||||||||
FCD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,240,405 | 1,212,178 | 1,183,093 | ||||||||
Original Equipment | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,967,143 | 1,936,055 | 1,875,746 | ||||||||
Original Equipment | FPD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 994,719 | 992,162 | 968,856 | ||||||||
Original Equipment | FCD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 972,424 | 943,893 | 906,890 | ||||||||
Aftermarket | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,977,707 | 1,896,611 | 1,785,085 | ||||||||
Aftermarket | FPD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,709,726 | 1,628,326 | 1,508,882 | ||||||||
Aftermarket | FCD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 267,981 | 268,285 | 276,203 | ||||||||
North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,629,613 | 1,577,953 | 1,446,692 | ||||||||
North America | FPD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 1,085,627 | 1,037,637 | 969,417 | ||||||||
North America | FCD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 543,986 | 540,316 | 477,275 | ||||||||
Latin America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 231,146 | 241,781 | 202,178 | ||||||||
Latin America | FPD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 202,247 | 219,376 | 168,971 | ||||||||
Latin America | FCD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 28,899 | 22,405 | 33,207 | ||||||||
Middle East and Africa | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 454,896 | 467,724 | 482,813 | ||||||||
Middle East and Africa | FPD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 355,937 | 329,484 | 327,366 | ||||||||
Middle East and Africa | FCD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 98,959 | 138,240 | 155,447 | ||||||||
Asia Pacific | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 819,167 | 781,668 | 684,198 | ||||||||
Asia Pacific | FPD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 499,932 | 502,559 | 445,001 | ||||||||
Asia Pacific | FCD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 319,235 | 279,109 | 239,197 | ||||||||
Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 810,028 | 763,540 | 844,950 | ||||||||
Europe | FPD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | 560,702 | 531,432 | 566,983 | ||||||||
Europe | FCD | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Sales | $ 249,326 | $ 232,108 | $ 277,967 |
Revenue Recognition (Contract A
Revenue Recognition (Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change In Contract With Customer, Asset And Liability [Roll Forward] | |||
Contract assets, net | $ 228,579 | ||
Contract liabilities | 202,458 | ||
Amounts transferred from contract assets to receivables | (45,939) | $ (23,693) | $ 0 |
Contract assets, net | 272,914 | 228,579 | |
Contract liabilities | 216,541 | 202,458 | |
Contract Assets, net (Current) | |||
Change In Contract With Customer, Asset And Liability [Roll Forward] | |||
Contract Assets, net (Current) | 228,579 | 219,361 | |
Revenue recognized that was included in contract liabilities at the beginning of the period | 0 | 0 | |
Increase due to revenue recognized in the period in excess of billings | 835,147 | 846,922 | |
Increase due to billings arising during the period in excess of revenue recognized | 0 | 0 | |
Amounts transferred from contract assets to receivables | (785,279) | (815,213) | |
Currency effects and other, net, contract assets | (5,533) | (22,491) | |
Contract Assets, net (Current) | 272,914 | 228,579 | 219,361 |
Long-term Contract Assets, net | |||
Change In Contract With Customer, Asset And Liability [Roll Forward] | |||
Contract assets, net | 10,967 | 3,990 | |
Revenue recognized that was included in contract liabilities at the beginning of the period | 0 | 0 | |
Increase due to revenue recognized in the period in excess of billings | 0 | 6,668 | |
Increase due to billings arising during the period in excess of revenue recognized | 0 | 0 | |
Amounts transferred from contract assets to receivables | (1,747) | (2,503) | |
Currency effects and other, net, contract assets | 60 | 2,812 | |
Contract assets, net | 9,280 | 10,967 | 3,990 |
Contract Liabilities (Current) | |||
Change In Contract With Customer, Asset And Liability [Roll Forward] | |||
Contract liabilities | 202,458 | 178,515 | |
Revenue recognized that was included in contract liabilities at the beginning of the period | (125,274) | (123,458) | |
Increase due to revenue recognized in the period in excess of billings | 0 | 0 | |
Increase due to billings arising during the period in excess of revenue recognized | 135,695 | 152,664 | |
Amounts transferred from contract assets to receivables | 0 | 0 | |
Currency effects and other, net, contract liabilities | 3,662 | (5,263) | |
Contract liabilities | 216,541 | 202,458 | 178,515 |
Long-term Contract Liabilities | |||
Change In Contract With Customer, Asset And Liability [Roll Forward] | |||
Long-term Contract Liabilities | 1,652 | 1,370 | $ 3,925 |
Revenue recognized that was included in contract liabilities at the beginning of the period | 0 | (1,360) | |
Increase due to revenue recognized in the period in excess of billings | 0 | 0 | |
Increase due to billings arising during the period in excess of revenue recognized | 290 | (481) | |
Amounts transferred from contract assets to receivables | 0 | 0 | |
Currency effects and other, net, contract liabilities | $ (8) | $ (714) |
Dispositions (Details)
Dispositions (Details) $ in Thousands, € in Millions | Jun. 29, 2018site | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)site | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) | Jul. 06, 2017USD ($) | May 02, 2017USD ($) | May 02, 2017EUR (€) |
Business Acquisition [Line Items] | |||||||||||||||||
Gain (loss) on sale of businesses | $ 0 | $ (7,727) | $ 141,317 | ||||||||||||||
Inventory write-down | 17,100 | 16,200 | 22,900 | ||||||||||||||
Earnings before income taxes | $ 86,700 | $ 96,200 | $ 82,900 | $ 76,100 | $ 78,600 | $ 44,400 | $ 28,300 | $ 25,000 | $ 341,850 | 176,274 | 263,007 | ||||||
Vogt | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Cash received at closing | $ 28,000 | ||||||||||||||||
Revenue from disposal groups | $ 17,000 | ||||||||||||||||
Earnings before income taxes | 4,000 | ||||||||||||||||
Gestra | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Gain (loss) on sale of businesses | 130,200 | ||||||||||||||||
Cash received at closing | $ 203,600 | € 178.3 | |||||||||||||||
Revenue from disposal groups | 101,000 | € 92 | |||||||||||||||
Gain (loss) on disposal, net of tax | 79,400 | ||||||||||||||||
Income tax attributable to disposal group | $ 17,000 | € 15 | |||||||||||||||
Vogt | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Gain (loss) on sale of businesses | 11,100 | ||||||||||||||||
FPD | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Divestiture of locations | site | 2 | 2 | |||||||||||||||
Pre-tax impairment charge | 17,400 | $ 25,100 | |||||||||||||||
Gain (loss) on sale of businesses | 7,700 | ||||||||||||||||
Inventory write-down | 7,700 | ||||||||||||||||
Asset impairment charges | $ 9,700 | ||||||||||||||||
Cash transfer from sale, net | $ 3,700 | ||||||||||||||||
Amount of revenue attributable to product lines | $ 42,000 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Changes in Carrying Amount of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 1,197,640 | $ 1,218,188 |
Currency translation and other | (4,630) | (20,548) |
Ending balance | 1,193,010 | 1,197,640 |
FPD | ||
Goodwill [Roll Forward] | ||
Beginning balance | 790,139 | 801,509 |
Currency translation and other | (3,509) | (11,370) |
Ending balance | 786,630 | 790,139 |
FCD | ||
Goodwill [Roll Forward] | ||
Beginning balance | 407,501 | 416,679 |
Currency translation and other | (1,121) | (9,178) |
Ending balance | $ 406,380 | $ 407,501 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Changes in Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2010 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Ending Gross Amount | $ 290,386 | $ 286,420 | |
Finite-lived intangible assets, Accumulated Amortization | (198,603) | (185,536) | |
Indefinite-lived intangible assets, Ending Gross Amount | 90,607 | 91,251 | |
Indefinite-lived intangible assets, Accumulated Amortization | $ (1,585) | (1,585) | |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 4 years | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 40 years | ||
Engineering drawings | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Ending Gross Amount | $ 89,490 | 89,796 | |
Finite-lived intangible assets, Accumulated Amortization | $ (78,854) | (75,239) | |
Engineering drawings | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 10 years | ||
Engineering drawings | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 22 years | ||
Existing customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 5 years | ||
Finite-lived intangible assets, Ending Gross Amount | $ 81,844 | 82,235 | |
Finite-lived intangible assets, Accumulated Amortization | $ (53,468) | (47,016) | |
Existing customer relationships | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 5 years | ||
Existing customer relationships | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 10 years | ||
Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Ending Gross Amount | $ 26,132 | 26,251 | |
Finite-lived intangible assets, Accumulated Amortization | $ (26,132) | (26,136) | |
Patents | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 9 years | ||
Patents | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 16 years | ||
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Ending Gross Amount | $ 92,920 | 88,138 | |
Finite-lived intangible assets, Accumulated Amortization | $ (40,149) | $ (37,145) | |
Other | Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 4 years | ||
Other | Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Useful Life (Years) | 40 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Actual and Estimated Future Amortization) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Actual for year ended December 31, 2019 | $ 13,769 | $ 14,100 | $ 15,300 |
Estimated for year ended December 31, 2020 | 13,637 | ||
Estimated for year ended December 31, 2021 | 13,183 | ||
Estimated for year ended December 31, 2022 | 10,666 | ||
Estimated for year ended December 31, 2023 | 8,402 | ||
Estimated for year ended December 31, 2024 | 6,428 | ||
Thereafter | $ 39,467 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Inventory, Net [Abstract] | |||
Raw materials | $ 328,080 | $ 310,204 | |
Work in process | 192,993 | 191,660 | |
Finished goods | 218,408 | 205,814 | |
Less: Excess and obsolete reserve | (78,644) | (73,807) | |
Inventories, net | 660,837 | 633,871 | |
Inventory Write-down | $ 17,100 | $ 16,200 | $ 22,900 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Jan. 01, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Lease not yet commenced, expense | $ 34.7 | |
Accounting Standards Update 2016-02 | ||
Lessee, Lease, Description [Line Items] | ||
Right-of-use asset | $ 225 | |
Lease liabilities | $ 225 | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease term | 34 years |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Disclosures by Compensation Plans) (Details) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2010 | |
Plan 2010 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized to issue under share based compensation plans | 8,700,000 | |
Common stock available under stock option plan | 1,611,332 | |
Age requirement | 55 years | |
Time in service requirement to vest over original vesting period | 10 years | |
2020 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized to issue under share based compensation plans | 12,500,000 |
Leases (Other Information) (Det
Leases (Other Information) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Operating Leases: | |
ROU assets recorded under operating leases | $ 220,865 |
Accumulated amortization associated with operating leases | (34,647) |
Total operating leases ROU assets, net | 186,218 |
Liabilities recorded under operating leases (current) | 36,108 |
Liabilities recorded under operating leases (non-current) | 151,523 |
Total operating leases liabilities | 187,631 |
Finance Leases: | |
ROU assets recorded under finance leases | 19,606 |
Accumulated depreciation associated with finance leases | (7,551) |
Total finance leases ROU assets, net | 12,055 |
Total finance leases liabilities | 11,788 |
Operating Lease Costs: | |
Fixed lease expense | 57,450 |
Variable lease expense | 6,492 |
Total operating lease expense | 63,942 |
Finance Lease Costs: | |
Depreciation of finance lease ROU assets | 4,729 |
Interest on lease liabilities | 352 |
Total finance lease expense | $ 5,081 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans (Information Regarding Stock Options) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant date fair value | $ 2,000,000 | ||
Shares | |||
Outstanding — beginning of year (in shares) | 114,943 | 114,943 | 0 |
Granted (in shares) | 0 | 0 | 114,943 |
Exercised (in shares) | 0 | 0 | 0 |
Canceled (in shares) | 0 | 0 | 0 |
Outstanding — end of year (in shares) | 114,943 | 114,943 | 114,943 |
Exercisable — end of year (in shares) | 0 | 0 | 0 |
Weighted Average Exercise Price | |||
Outstanding — beginning of year (in dollars per share) | $ 48.63 | $ 48.63 | $ 0 |
Granted (in dollars per share) | 0 | 0 | 48.63 |
Exercised (in dollars per share) | 0 | 0 | 0 |
Canceled (in dollars per share) | 0 | 0 | 0 |
Outstanding — end of year (in dollars per share) | 48.63 | 48.63 | 48.63 |
Exercisable — end of year (in dollars per share) | $ 0 | $ 0 | $ 0 |
Weighted Average Remaining Contractual Life | 7 years 3 months 18 days | 8 years 3 months 18 days | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
General vesting period (years) | 3 years | ||
General expiration period, from date of grant or time of termination (years) | 10 years | ||
Recognition of unearned compensation, (years) | 3 years | ||
Unearned compensation cost | $ 300,000 | ||
Number of stock options vested | $ 0 | $ 0 | $ 0 |
Leases (Supplemental Cash Flows
Leases (Supplemental Cash Flows Information) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 64,725 |
Financing cash flows from finance leases | 4,465 |
ROU assets obtained in exchange for lease obligations: | |
Operating leases | 14,569 |
Finance leases | $ 10,615 |
Weighted average remaining lease term (in years) | |
Operating leases | 9 years |
Finance leases | 3 years |
Weighted average discount rate (percent) | |
Operating leases | 4.50% |
Finance leases | 3.60% |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans (Information Regarding Restricted Shares) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unearned compensation costs | $ 23.4 | $ 24.3 | |
Recognition of unearned compensation, (years) | 1 year | ||
Fair value of Restricted Shares vested | $ 16.8 | 14.3 | $ 30.5 |
Stock-based compensation expense | 23.9 | 19.9 | 22.8 |
Related income tax benefit | (5.4) | (4.5) | (5.2) |
Net stock-based compensation expense | $ 18.5 | $ 15.4 | $ 17.6 |
Shares | |||
Outstanding — beginning of year (in shares) | 1,530,214 | ||
Granted (in shares) | 857,116 | ||
Vested (in shares) | (392,152) | ||
Canceled (in shares) | (304,578) | ||
Outstanding — ending of year (in shares) | 1,690,600 | 1,530,214 | |
Weighted Average Grant-Date Fair Value | |||
Outstanding — beginning of year (in dollars per share) | $ 45.06 | ||
Granted (in dollars per share) | 46.80 | ||
Vested (in dollars per share) | 42.82 | ||
Canceled (in dollars per share) | 43.66 | ||
Outstanding — ending of year (in dollars per share) | $ 46.71 | $ 45.06 | |
Restricted Stock | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
General expiration period, from date of grant or time of termination (years) | 1 year | ||
General vesting period (years) | 1 year | ||
Restricted Stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
General expiration period, from date of grant or time of termination (years) | 3 years | ||
General vesting period (years) | 3 years | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
General vesting period (years) | 36 months | ||
Shares | |||
Outstanding — ending of year (in shares) | 647,000 | ||
Weighted Average Grant-Date Fair Value | |||
Period for achieving performance targets on performance based units (years) | 3 years | ||
Estimated vesting of shares based on performance shares | 466,000 | ||
Performance Shares | Minimum | |||
Weighted Average Grant-Date Fair Value | |||
Vesting percentage of grants, depending on achievement of specific performance targets | 0.00% | ||
Estimated vesting of shares based on performance shares | 0 | ||
Performance Shares | Maximum | |||
Weighted Average Grant-Date Fair Value | |||
Vesting percentage of grants, depending on achievement of specific performance targets | 200.00% | ||
Estimated vesting of shares based on performance shares | 1,294,000 |
Leases (Future Lease Payments)
Leases (Future Lease Payments) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Leases | ||
2020 | $ 42,164 | |
2021 | 32,762 | |
2022 | 27,378 | |
2023 | 23,120 | |
2024 | 18,160 | |
Thereafter | 84,742 | |
Total future minimum lease payments | 228,326 | |
Less: Imputed interest | (40,695) | |
Total operating leases liabilities | 187,631 | |
Liabilities recorded under operating leases (current) | 36,108 | |
Operating lease liabilities | 151,523 | |
Finance Leases | ||
2020 | 4,897 | |
2021 | 3,660 | |
2022 | 2,417 | |
2023 | 1,101 | |
2024 | 277 | |
Thereafter | 96 | |
Total future minimum lease payments | 12,448 | |
Less: Imputed interest | (660) | |
Total | 11,788 | |
Debt due within one year | 4,622 | |
Long-term debt due after one year | $ 7,166 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
2019 | $ 68,443 | |
2020 | 49,874 | |
2021 | 38,446 | |
2022 | 28,496 | |
2023 | 21,473 | |
Thereafter | 66,518 | |
Total future minimum lease payments | $ 273,250 |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Details Textual) € in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Mar. 31, 2015EUR (€) | |
Foreign Exchange Forward | |||
Derivative [Line Items] | |||
Derivative, lower remaining maturity range | 17 days | ||
Derivative, upper remaining maturity range | 32 months | ||
Not Designated as a Hedging Instrument | Foreign Exchange Forward | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ | $ 398.5 | $ 280.9 | |
2022 EUR Senior notes | |||
Derivative [Line Items] | |||
Designated amount, net investment hedge | € 255.7 | ||
Debt instrument, face amount | € 500 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities (Fair Value Balance Sheet Disclosures) (Details) - Not Designated as a Hedging Instrument - Forward Exchange Contracts - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair value disclosues, by balance sheet location | ||
Current derivative assets | $ 892 | $ 535 |
Noncurrent derivative assets | 15 | 5 |
Current derivative liabilities | 3,418 | 3,285 |
Noncurrent derivative liabilities | $ 8 | $ 2 |
Derivatives and Hedging Activ_5
Derivatives and Hedging Activities (Fair Value of Forward Exchange Contracts Not Designated as Hedging Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Not Designated as a Hedging Instrument | Forward Exchange Contracts | |||
Derivative [Line Items] | |||
Gain (loss) recognized in income | $ (6,495) | $ (3,154) | $ 2,122 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Estimated fair value | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Senior Notes | $ 1,381.2 |
Carrying value | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Senior Notes | $ 1,354.1 |
Details of Certain Consolidat_3
Details of Certain Consolidated Balance Sheet Captions (Accounts Receivable, net) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Details of Certain Consolidated Balance Sheet Captions [Abstract] | ||
Accounts receivable | $ 848,950 | $ 843,935 |
Less: allowance for doubtful accounts | (53,412) | (51,501) |
Accounts receivable, net | $ 795,538 | $ 792,434 |
Details of Certain Consolidat_4
Details of Certain Consolidated Balance Sheet Captions (Property, Plant and Equipment, net) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 1,585,382 | $ 1,566,730 |
Less: accumulated depreciation | (1,013,207) | (956,634) |
Property, plant and equipment, net | 572,175 | 610,096 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 64,778 | 72,701 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 419,454 | 441,006 |
Machinery, equipment and tooling | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 666,376 | 634,838 |
Software, furniture and fixtures and other | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 434,774 | $ 418,185 |
Details of Certain Consolidat_5
Details of Certain Consolidated Balance Sheet Captions (Accrued Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Details of Certain Consolidated Balance Sheet Captions [Abstract] | ||
Wages, compensation and other benefits | $ 192,354 | $ 198,311 |
Commissions and royalties | 23,027 | 19,673 |
Warranty costs and late delivery penalties | 30,625 | 31,683 |
Sales and use tax | 18,146 | 14,486 |
Income tax | 20,018 | 9,865 |
Other | 117,215 | 117,388 |
Accrued liabilities | $ 401,385 | $ 391,406 |
Other accrued liabilities maximum percentage of current liabilities | 5.00% |
Details of Certain Consolidat_6
Details of Certain Consolidated Balance Sheet Captions (Retirement Obligations and Other Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Details of Certain Consolidated Balance Sheet Captions [Abstract] | ||
Pension and postretirement benefits | $ 199,603 | $ 183,012 |
Deferred taxes | 163,084 | 159,404 |
Operating lease liabilities | 151,523 | |
Legal and environmental | 28,593 | 21,949 |
Uncertain tax positions and other tax liabilities | 42,086 | 57,553 |
Other | 39,929 | 37,775 |
Retirement obligations and other liabilities | 624,818 | |
Retirement obligations and other liabilities | $ 473,295 | $ 459,693 |
Equity Method Investments (Deta
Equity Method Investments (Details) | Dec. 31, 2019ventures |
Schedule of Equity Method Investments [Line Items] | |
Number of joint ventures | 6 |
Chile | |
Schedule of Equity Method Investments [Line Items] | |
Number of joint ventures | 1 |
China | |
Schedule of Equity Method Investments [Line Items] | |
Number of joint ventures | 1 |
India | |
Schedule of Equity Method Investments [Line Items] | |
Number of joint ventures | 1 |
Saudi Arabia | |
Schedule of Equity Method Investments [Line Items] | |
Number of joint ventures | 1 |
South Korea | |
Schedule of Equity Method Investments [Line Items] | |
Number of joint ventures | 1 |
United Arab Emirates | |
Schedule of Equity Method Investments [Line Items] | |
Number of joint ventures | 1 |
Debt and Finance Lease Obliga_3
Debt and Finance Lease Obligations (Debt Including Capital Lease Obligations) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 17, 2015 | Nov. 01, 2013 | Sep. 11, 2012 |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 1,377,249 | ||||
Finance lease obligations and other borrowings | 23,103 | ||||
Finance lease obligations and other borrowings | $ 13,541 | ||||
Debt and finance lease obligations | 1,377,249 | 1,483,047 | |||
Less amounts due within one year | 11,272 | 68,218 | |||
Total debt due after one year | $ 1,365,977 | $ 1,414,829 | |||
2022 EUR Senior notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percentage) | 1.25% | 1.25% | 1.25% | ||
Unamortized discount and debt issuance costs | $ 2,653 | $ 3,914 | |||
Long-term debt | $ 557,847 | $ 569,536 | |||
2022 Senior notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percentage) | 3.50% | 3.50% | 3.50% | ||
Unamortized discount and debt issuance costs | $ 1,924 | $ 2,589 | |||
Long-term debt | $ 498,076 | $ 497,411 | |||
2023 Senior notes | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percentage) | 4.00% | 4.00% | 4.00% | ||
Unamortized discount and debt issuance costs | $ 1,777 | $ 2,192 | |||
Long-term debt | $ 298,223 | $ 297,808 | |||
Term Loan | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percentage) | 0.00% | 4.30% | |||
Debt issuance costs | $ 0 | $ 249 | |||
Long-term debt | $ 0 | $ 104,751 |
Debt and Finance Lease Obliga_4
Debt and Finance Lease Obligations (Maturities of Debt by Type) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 11,272 |
2021 | 11,831 |
2022 | 1,055,923 |
2023 | 298,223 |
Total | $ 1,377,249 |
Debt and Finance Lease Obliga_5
Debt and Finance Lease Obligations (Senior Notes) (Details) | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Mar. 17, 2015EUR (€) | Nov. 01, 2013USD ($) | Sep. 11, 2012USD ($) | |
2022 EUR Senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | € | € 500,000,000 | ||||
Interest rate (as a percentage) | 1.25% | 1.25% | 1.25% | ||
Price of senior notes, stated as percentage of principal amount | 99.336% | ||||
Redemption price, states as percentage of principal amount | 100.00% | ||||
Basis points increase over Treasury Rate upon redemption | 0.25 | ||||
Redemption price, percentage of principal amount redeemed | 100.00% | ||||
2023 Senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 300,000,000 | ||||
Interest rate (as a percentage) | 4.00% | 4.00% | 4.00% | ||
Price of senior notes, stated as percentage of principal amount | 99.532% | ||||
Basis points increase over Treasury Rate upon redemption | 0.25 | ||||
2022 Senior notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 500,000,000 | ||||
Interest rate (as a percentage) | 3.50% | 3.50% | 3.50% | ||
Price of senior notes, stated as percentage of principal amount | 99.615% | ||||
Redemption price, states as percentage of principal amount | 100.00% | ||||
Basis points increase over Treasury Rate upon redemption | 0.30 |
Debt and Finance Lease Obliga_6
Debt and Finance Lease Obligations (Senior Credit Facility) (Details) - USD ($) | Sep. 16, 2019 | Jul. 16, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Line of Credit Facility [Line Items] | |||||
Repayments of debt | $ 105,000,000 | $ 60,000,000 | $ 60,000,000 | ||
Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Amount outstanding | 0 | 0 | |||
Current borrowing capacity | 711,500,000 | 513,700,000 | |||
Senior Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Letters of credit, amount outstanding | 88,500,000 | 92,900,000 | |||
Term Loan | |||||
Line of Credit Facility [Line Items] | |||||
Repayments of debt | 30,000,000 | $ 60,000,000 | $ 60,000,000 | ||
Debt repayment | $ 105,000,000 | ||||
Revolving Credit Facility | New Senior Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 800,000,000 | ||||
Maximum increase in borrowing capacity | 400,000,000 | ||||
Amount outstanding | 75,000,000 | ||||
Repayments of debt | $ 75,000,000 | ||||
Commitment fee percentage | 0.20% | ||||
Letter of Credit | New Senior Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | 750,000,000 | ||||
Bridge Loan | New Senior Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum borrowing capacity | $ 30,000,000 | ||||
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | New Senior Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.375% | ||||
Base Rate | Revolving Credit Facility | New Senior Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.375% | ||||
Minimum | Revolving Credit Facility | New Senior Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Unused capacity, commitment fee percentage | 0.09% | ||||
Minimum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | New Senior Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.00% | ||||
Minimum | Base Rate | Revolving Credit Facility | New Senior Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.00% | ||||
Maximum | Revolving Credit Facility | New Senior Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Unused capacity, commitment fee percentage | 0.30% | ||||
Maximum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | New Senior Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.75% | ||||
Maximum | Base Rate | Revolving Credit Facility | New Senior Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.75% |
Pension and Postretirement Be_3
Pension and Postretirement Benefits (Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Postretirement Medical Benefits | |||
Weighted average assumptions used to determine Benefit Obligations: | |||
Discount rate | 3.27% | 4.20% | 3.48% |
Weighted average assumptions used to determine net pension expense: | |||
Discount rate | 4.20% | 3.48% | 3.75% |
United States | Pension Plan | |||
Weighted average assumptions used to determine Benefit Obligations: | |||
Discount rate | 3.41% | 4.34% | 3.63% |
Rate of increase in compensation levels | 3.50% | 3.50% | 4.01% |
Weighted average assumptions used to determine net pension expense: | |||
Long-term rate of return on assets | 6.00% | 6.00% | 6.00% |
Discount rate | 4.34% | 3.63% | 4.00% |
Rate of increase in compensation levels | 3.50% | 4.01% | 4.01% |
Foreign Plan | |||
Weighted average assumptions used to determine Benefit Obligations: | |||
Discount rate | 2.25% | ||
Rate of increase in compensation levels | 3.12% | 3.28% | 3.25% |
Weighted average assumptions used to determine net pension expense: | |||
Long-term rate of return on assets | 3.88% | ||
Discount rate | 2.42% | 2.25% | 2.34% |
Rate of increase in compensation levels | 3.28% | 3.25% | 3.22% |
Foreign Plan | Pension Plan | |||
Weighted average assumptions used to determine Benefit Obligations: | |||
Discount rate | 1.61% | 2.42% | |
Weighted average assumptions used to determine net pension expense: | |||
Long-term rate of return on assets | 3.37% | 3.62% |
Pension and Postretirement Be_4
Pension and Postretirement Benefits (Details Textual) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)plan | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan expense | $ 20,400 | $ 18,700 | $ 17,700 |
Postretirement Medical Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.27% | 4.20% | 3.48% |
Company contributions | $ 2,900 | $ 3,200 | $ 2,500 |
Assumed rate of increase in medical costs | 7.50% | 7.00% | 7.00% |
Minimum medical cost rate to be acheived | 5.00% | ||
United States | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.41% | 4.34% | 3.63% |
Long-term rate of return on assets | 6.00% | 6.00% | 6.00% |
MP Improvement Scale Rate (as a percent) | 75.00% | ||
Prior service cost to be amortized from accumulated other comprehensive loss next year | $ 200 | ||
Estimated net gain (loss) to be amortized from accumulated other comprehensive loss next year | (6,600) | ||
Company contributions | 20,552 | $ 23,263 | |
United States | Pension Plan | Minimum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated contributions in the next year | $ 20,000 | ||
United States | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, target allocation (as a percent) | 43.00% | ||
United States | Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, target allocation (as a percent) | 57.00% | ||
United States | Fixed Income | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, target allocation (as a percent) | 57.00% | 57.00% | |
Plan assets, actual allocation (as a percent) | 59.00% | 56.00% | |
Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.25% | ||
Long-term rate of return on assets | 3.88% | ||
Foreign Plan | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 1.61% | 2.42% | |
Long-term rate of return on assets | 3.37% | 3.62% | |
Prior service cost to be amortized from accumulated other comprehensive loss next year | $ 300 | ||
Estimated net gain (loss) to be amortized from accumulated other comprehensive loss next year | (4,300) | ||
Company contributions | 16,782 | $ 21,696 | |
Estimated contributions in the next year | $ 2,000 | ||
Number of plans Non-US Assets | plan | 2 | ||
Foreign Plan | Fixed Income | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, target allocation (as a percent) | 50.00% | 54.00% | |
Plan assets, actual allocation (as a percent) | 50.00% | 54.00% | |
Foreign Plan | U.K. , the Netherlands and Canadian Plan Assets | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, actual allocation (as a percent) | 94.00% |
Pension and Postretirement Be_5
Pension and Postretirement Benefits (Net Benefit Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Postretirement Medical Benefits | |||
Components of the net periodic cost for retirement and postretirement benefits | |||
Interest cost | $ 754 | $ 779 | $ 919 |
Amortization of unrecognized net loss | (215) | (764) | (275) |
Amortization of unrecognized prior service cost (benefit) | 122 | 122 | 122 |
U.S. net pension expense | 661 | 137 | 766 |
United States | Pension Plan | |||
Components of the net periodic cost for retirement and postretirement benefits | |||
Service cost | 23,245 | 22,195 | 22,257 |
Interest cost | 17,584 | 15,789 | 16,878 |
Expected return on plan assets | (25,645) | (25,704) | (24,505) |
Settlement loss (gain) and other | 0 | (462) | (216) |
Amortization of unrecognized prior service cost | 164 | 164 | 112 |
Amortization of unrecognized net loss | 3,675 | 5,514 | 6,021 |
Amortization of unrecognized prior service cost (benefit) | 211 | 0 | |
U.S. net pension expense | 19,023 | 17,496 | 20,547 |
Foreign Plan | Pension Plan | |||
Components of the net periodic cost for retirement and postretirement benefits | |||
Service cost | 5,728 | 7,208 | 7,247 |
Interest cost | 8,867 | 8,970 | 9,320 |
Expected return on plan assets | (7,535) | (8,747) | (8,834) |
Settlement loss (gain) and other | 859 | (521) | 2,434 |
Amortization of unrecognized net loss | 2,933 | 3,626 | 3,741 |
Amortization of unrecognized prior service cost (benefit) | 265 | 33 | (4) |
U.S. net pension expense | $ 11,117 | $ 10,569 | $ 13,904 |
Pension and Postretirement Be_6
Pension and Postretirement Benefits (Funded Status) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Postretirement Medical Benefits | |||
Funded status of plan: | |||
Benefit Obligation | $ (18,862) | $ (18,810) | $ (23,882) |
Funded status | (18,862) | (18,810) | |
United States | Pension Plan | |||
Funded status of plan: | |||
Plan assets, at fair value | 482,553 | 425,792 | 464,779 |
Benefit Obligation | (471,462) | (432,595) | (461,355) |
Funded status | 11,091 | (6,803) | |
Foreign Plan | Pension Plan | |||
Funded status of plan: | |||
Plan assets, at fair value | 262,559 | 232,175 | 248,733 |
Benefit Obligation | (425,617) | (376,649) | $ (413,960) |
Funded status | $ (163,058) | $ (144,474) |
Pension and Postretirement Be_7
Pension and Postretirement Benefits (Amounts Recognized in Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||
Noncurrent liabilities | $ (199,603) | $ (183,012) |
Postretirement Medical Benefits | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||
Current liabilities | (2,370) | (2,500) |
Noncurrent liabilities | (16,492) | (16,310) |
Funded status | (18,862) | (18,810) |
United States | Pension Plan | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||
Noncurrent assets | 16,396 | 0 |
Current liabilities | (348) | (232) |
Noncurrent liabilities | (4,957) | (6,571) |
Funded status | 11,091 | (6,803) |
Foreign Plan | Pension Plan | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||
Noncurrent assets | 16,379 | 17,864 |
Current liabilities | (7,609) | (7,782) |
Noncurrent liabilities | (171,828) | (154,556) |
Funded status | $ (163,058) | $ (144,474) |
Pension and Postretirement Be_8
Pension and Postretirement Benefits (Change in Benefit Obligation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Postretirement Medical Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance — January 1 | $ 18,810 | $ 23,882 | |
Interest cost | 754 | 779 | $ 919 |
Actuarial loss (gain) | 2,222 | (2,662) | |
Benefits paid | (3,902) | (4,199) | |
Employee contributions | 964 | 883 | |
Medicare subsidies receivable | 14 | 127 | |
Balance — December 31 | 18,862 | 18,810 | 23,882 |
United States | Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance — January 1 | 432,595 | 461,355 | |
Service cost | 23,245 | 22,195 | 22,257 |
Interest cost | 17,584 | 15,789 | 16,878 |
Plan amendments and settlements | 276 | (3,016) | |
Actuarial loss (gain) | 31,214 | (25,908) | |
Benefits paid | (33,452) | (37,820) | |
Balance — December 31 | 471,462 | 432,595 | 461,355 |
Accumulated benefit obligations | 470,643 | 431,973 | |
Foreign Plan | Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance — January 1 | 376,649 | 413,960 | |
Service cost | 5,728 | 7,208 | 7,247 |
Interest cost | 8,867 | 8,970 | 9,320 |
Actuarial loss (gain) | 48,888 | (8,839) | |
Benefits paid | (14,526) | (16,632) | |
Employee contributions | 78 | 238 | |
Settlements and other | (3,713) | (7,896) | |
Currency translation impact | 3,646 | (20,360) | |
Balance — December 31 | 425,617 | 376,649 | $ 413,960 |
Accumulated benefit obligations | $ 404,035 | $ 356,989 |
Pension and Postretirement Be_9
Pension and Postretirement Benefits (Expected Benefit Payments) (Details) $ in Millions | Dec. 31, 2019USD ($) |
Postretirement Medical Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected Payment, 2020 | $ 2.4 |
Expected Payment, 2021 | 2.3 |
Expected Payment, 2022 | 2.1 |
Expected Payment, 2023 | 1.9 |
Expected Payment, 2024 | 1.7 |
Expected Payment, 2025-2029 | 6.6 |
United States | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected Payment, 2020 | 42.8 |
Expected Payment, 2021 | 44 |
Expected Payment, 2022 | 41.9 |
Expected Payment, 2023 | 42.9 |
Expected Payment, 2024 | 42.1 |
Expected Payment, 2025-2029 | 196.8 |
Foreign Plan | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected Payment, 2020 | 16.5 |
Expected Payment, 2021 | 17 |
Expected Payment, 2022 | 17.8 |
Expected Payment, 2023 | 17.9 |
Expected Payment, 2024 | 18.7 |
Expected Payment, 2025-2029 | $ 97.3 |
Pension and Postretirement B_10
Pension and Postretirement Benefits (Change in Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Postretirement Medical Benefits | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax [Abstract] | |||
Balance — January 1 | $ 2,425 | $ 880 | |
Amortization of net loss | (164) | (584) | |
Amortization of prior service cost | 94 | 93 | |
Net gain (loss) arising during the year | (1,699) | 2,036 | |
Prior service cost arising during the year | (122) | (122) | $ (122) |
Balance — December 31 | 656 | 2,425 | 880 |
United States | Pension Plan | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax [Abstract] | |||
Balance — January 1 | (62,018) | (49,790) | |
Amortization of net loss | 2,809 | 4,216 | |
Amortization of prior service cost | 125 | 125 | |
Net gain (loss) arising during the year | 9,785 | (16,216) | |
Settlement gain | 0 | (353) | |
Prior service cost arising during the year | (211) | 0 | |
Balance — December 31 | (49,510) | (62,018) | (49,790) |
Foreign Plan | Pension Plan | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax [Abstract] | |||
Balance — January 1 | (62,088) | (67,872) | |
Amortization of net loss | 2,946 | 3,260 | |
Net gain (loss) arising during the year | (29,910) | 2,458 | |
Prior service cost arising during the year | (265) | (33) | 4 |
Settlement loss (gain) | 746 | (386) | |
Prior service cost arising during the year | 0 | (3,080) | |
Currency translation impact and other | (1,031) | 3,532 | |
Balance — December 31 | $ (89,337) | $ (62,088) | $ (67,872) |
Pension and Postretirement B_11
Pension and Postretirement Benefits (Amounts Recognized in Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Postretirement Medical Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized net gain (loss) | $ 1,512 | $ 3,365 | |
Unrecognized prior service cost | (856) | (940) | |
Accumulated other comprehensive loss, net of tax | 656 | 2,425 | $ 880 |
United States | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized net gain (loss) | (48,578) | (61,129) | |
Unrecognized prior service cost | (932) | (889) | |
Accumulated other comprehensive loss, net of tax | (49,510) | (62,018) | (49,790) |
Foreign Plan | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized net gain (loss) | (85,891) | (58,697) | |
Unrecognized prior service cost | (3,446) | (3,391) | |
Accumulated other comprehensive loss, net of tax | $ (89,337) | $ (62,088) | $ (67,872) |
Pension and Postretirement B_12
Pension and Postretirement Benefits (Plan Assets) (Details) - Pension Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Aug. 29, 2019 | |
United States | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | $ 425,792 | $ 464,779 | |
Return (loss) on plan assets | 69,663 | (21,414) | |
Company contributions | 20,552 | 23,263 | |
Benefits paid | (33,454) | (37,820) | |
Settlements | 0 | (3,016) | |
Ending balance | 482,553 | 425,792 | |
Fair Value | 425,792 | 425,792 | |
United States | Hierarchial Level 1 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 4,778 | ||
Ending balance | 4,994 | 4,778 | |
Fair Value | 4,778 | 4,778 | |
United States | Hierarchial Level 2 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 421,014 | ||
Ending balance | 477,559 | 421,014 | |
Fair Value | 421,014 | 421,014 | |
United States | Hierarchial Level 3 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
United States | Cash and Cash Equivalents | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 4,778 | ||
Ending balance | 4,994 | 4,778 | |
Fair Value | 4,778 | 4,778 | |
United States | Cash and Cash Equivalents | Hierarchial Level 1 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 4,778 | ||
Ending balance | 4,994 | 4,778 | |
Fair Value | 4,778 | 4,778 | |
United States | Cash and Cash Equivalents | Hierarchial Level 2 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
United States | Cash and Cash Equivalents | Hierarchial Level 3 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
United States | Global Equity | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 126,165 | ||
Ending balance | 135,350 | 126,165 | |
Fair Value | 126,165 | 126,165 | |
United States | Global Equity | Hierarchial Level 1 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
United States | Global Equity | Hierarchial Level 2 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 126,165 | ||
Ending balance | 135,350 | 126,165 | |
Fair Value | 126,165 | 126,165 | |
United States | Global Equity | Hierarchial Level 3 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
United States | Global Real Assets | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 55,046 | ||
Ending balance | 60,523 | 55,046 | |
Fair Value | 55,046 | 55,046 | |
United States | Global Real Assets | Hierarchial Level 1 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
United States | Global Real Assets | Hierarchial Level 2 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 55,046 | ||
Ending balance | 60,523 | 55,046 | |
Fair Value | 55,046 | 55,046 | |
United States | Global Real Assets | Hierarchial Level 3 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
United States | Diversified Credit | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 55,039 | ||
Ending balance | 56,375 | 55,039 | |
Fair Value | 55,039 | 55,039 | |
United States | Diversified Credit | Hierarchial Level 1 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
United States | Diversified Credit | Hierarchial Level 2 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 55,039 | ||
Ending balance | 56,375 | 55,039 | |
Fair Value | 55,039 | 55,039 | |
United States | Diversified Credit | Hierarchial Level 3 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
United States | Liability Driven Investment | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 184,764 | ||
Ending balance | 225,311 | 184,764 | |
Fair Value | 184,764 | 184,764 | |
United States | Liability Driven Investment | Hierarchial Level 1 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
United States | Liability Driven Investment | Hierarchial Level 2 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 184,764 | ||
Ending balance | 225,311 | 184,764 | |
Fair Value | 184,764 | 184,764 | |
United States | Liability Driven Investment | Hierarchial Level 3 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
Foreign Plan | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 232,175 | 248,733 | |
Return (loss) on plan assets | 23,793 | (580) | |
Company contributions | 16,782 | 21,696 | |
Benefits paid | (14,526) | (16,632) | |
Employee contributions | 78 | 238 | |
Settlements | (3,688) | (7,776) | |
Currency translation impact and other | 7,945 | (13,504) | |
Ending balance | 262,559 | 232,175 | |
Fair Value | 262,559 | 248,733 | |
Foreign Plan | Hierarchial Level 1 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 15,105 | ||
Ending balance | 5,026 | 15,105 | |
Fair Value | 15,105 | 15,105 | |
Foreign Plan | Hierarchial Level 2 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 180,186 | ||
Ending balance | 187,742 | 180,186 | |
Fair Value | 180,186 | 180,186 | |
Foreign Plan | Hierarchial Level 3 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 36,884 | ||
Ending balance | 69,791 | 36,884 | |
Fair Value | 36,884 | 36,884 | |
Foreign Plan | Cash and Cash Equivalents | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 15,105 | ||
Ending balance | 5,026 | 15,105 | |
Fair Value | 15,105 | 15,105 | |
Foreign Plan | Cash and Cash Equivalents | Hierarchial Level 1 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 15,105 | ||
Ending balance | 5,026 | 15,105 | |
Fair Value | 15,105 | 15,105 | |
Foreign Plan | Cash and Cash Equivalents | Hierarchial Level 2 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
Foreign Plan | Cash and Cash Equivalents | Hierarchial Level 3 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
Foreign Plan | Global Equity | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 4,648 | ||
Ending balance | 2,411 | 4,648 | |
Fair Value | 4,648 | 4,648 | |
Foreign Plan | Global Equity | Hierarchial Level 1 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
Foreign Plan | Global Equity | Hierarchial Level 2 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 4,648 | ||
Ending balance | 2,411 | 4,648 | |
Fair Value | 4,648 | 4,648 | |
Foreign Plan | Global Equity | Hierarchial Level 3 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
Foreign Plan | North American Companies | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 6,603 | ||
Ending balance | 2,501 | 6,603 | |
Fair Value | 6,603 | 6,603 | |
Foreign Plan | North American Companies | Hierarchial Level 1 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
Foreign Plan | North American Companies | Hierarchial Level 2 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 6,603 | ||
Ending balance | 2,501 | 6,603 | |
Fair Value | 6,603 | 6,603 | |
Foreign Plan | North American Companies | Hierarchial Level 3 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
Foreign Plan | U.K. Government Gilt Index | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 99,482 | ||
Ending balance | 113,855 | 99,482 | |
Fair Value | 99,482 | 99,482 | |
Foreign Plan | U.K. Government Gilt Index | Hierarchial Level 1 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
Foreign Plan | U.K. Government Gilt Index | Hierarchial Level 2 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 99,482 | ||
Ending balance | 113,855 | 99,482 | |
Fair Value | 99,482 | 99,482 | |
Foreign Plan | U.K. Government Gilt Index | Hierarchial Level 3 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
Foreign Plan | U.K. Corporate Bond Index | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 1,192 | ||
Ending balance | 0 | 1,192 | |
Fair Value | 1,192 | 1,192 | |
Foreign Plan | U.K. Corporate Bond Index | Hierarchial Level 1 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
Foreign Plan | U.K. Corporate Bond Index | Hierarchial Level 2 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 1,192 | ||
Ending balance | 0 | 1,192 | |
Fair Value | 1,192 | 1,192 | |
Foreign Plan | U.K. Corporate Bond Index | Hierarchial Level 3 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
Foreign Plan | Global Index Income Bond | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 4,110 | ||
Ending balance | 0 | 4,110 | |
Fair Value | 4,110 | 4,110 | |
Foreign Plan | Global Index Income Bond | Hierarchial Level 1 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
Foreign Plan | Global Index Income Bond | Hierarchial Level 2 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 4,110 | ||
Ending balance | 0 | 4,110 | |
Fair Value | 4,110 | 4,110 | |
Foreign Plan | Global Index Income Bond | Hierarchial Level 3 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
Foreign Plan | Liability Driven Investment | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 20,004 | ||
Ending balance | 20,011 | 20,004 | |
Fair Value | 20,004 | 20,004 | |
Foreign Plan | Liability Driven Investment | Hierarchial Level 1 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
Foreign Plan | Liability Driven Investment | Hierarchial Level 2 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 20,004 | ||
Ending balance | 20,011 | 20,004 | |
Fair Value | 20,004 | 20,004 | |
Foreign Plan | Liability Driven Investment | Hierarchial Level 3 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
Foreign Plan | Multi-Asset Category | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 44,147 | ||
Ending balance | 48,964 | 44,147 | |
Fair Value | 44,147 | 44,147 | |
Foreign Plan | Multi-Asset Category | Hierarchial Level 1 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
Foreign Plan | Multi-Asset Category | Hierarchial Level 2 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 44,147 | ||
Ending balance | 48,964 | 44,147 | |
Fair Value | 44,147 | 44,147 | |
Foreign Plan | Multi-Asset Category | Hierarchial Level 3 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
Foreign Plan | Buy-in Contracts | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 23,616 | ||
Ending balance | 54,544 | 23,616 | |
Fair Value | 23,616 | 23,616 | |
Foreign Plan | Buy-in Contracts | Hierarchial Level 1 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
Foreign Plan | Buy-in Contracts | Hierarchial Level 2 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
Foreign Plan | Buy-in Contracts | Hierarchial Level 3 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Ending balance | 54,544 | ||
Fair Value | 54,544 | ||
Foreign Plan | Other types | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 13,268 | ||
Ending balance | 15,247 | 13,268 | |
Fair Value | 13,268 | 13,268 | |
Foreign Plan | Other types | Hierarchial Level 1 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
Foreign Plan | Other types | Hierarchial Level 2 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 0 | ||
Ending balance | 0 | 0 | |
Fair Value | 0 | 0 | |
Foreign Plan | Other types | Hierarchial Level 3 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 13,268 | ||
Ending balance | 15,247 | 13,268 | |
Fair Value | 13,268 | 13,268 | |
Netherlands | Buy-in Contracts | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 23,600 | ||
Ending balance | 25,900 | 23,600 | |
Fair Value | 25,900 | $ 23,600 | |
United Kingdom | Buy-in Contracts | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Ending balance | 28,600 | ||
Fair Value | $ 28,600 | $ 27,400 |
Pension and Postretirement B_13
Pension and Postretirement Benefits (Plan Assets by Percentage Allocation) (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
United States | Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 57.00% | |
Pension Plan | United States | Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 0.00% | 0.00% |
Plan assets, actual allocation (as a percent) | 1.00% | 1.00% |
Pension Plan | United States | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 43.00% | 43.00% |
Plan assets, actual allocation (as a percent) | 40.00% | 43.00% |
Pension Plan | United States | Global Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 31.00% | 30.00% |
Plan assets, actual allocation (as a percent) | 28.00% | 30.00% |
Pension Plan | United States | Global Real Assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 12.00% | 13.00% |
Plan assets, actual allocation (as a percent) | 12.00% | 13.00% |
Pension Plan | United States | Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 57.00% | 57.00% |
Plan assets, actual allocation (as a percent) | 59.00% | 56.00% |
Pension Plan | United States | Diversified Credit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 12.00% | 12.00% |
Plan assets, actual allocation (as a percent) | 12.00% | 13.00% |
Pension Plan | United States | Liability Driven Investment | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 45.00% | 45.00% |
Plan assets, actual allocation (as a percent) | 47.00% | 43.00% |
Pension Plan | Foreign Plan | Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 2.00% | 7.00% |
Plan assets, actual allocation (as a percent) | 2.00% | 7.00% |
Pension Plan | Foreign Plan | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 2.00% | 5.00% |
Plan assets, actual allocation (as a percent) | 2.00% | 5.00% |
Pension Plan | Foreign Plan | Global Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 1.00% | 2.00% |
Plan assets, actual allocation (as a percent) | 1.00% | 2.00% |
Pension Plan | Foreign Plan | North American Companies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 1.00% | 3.00% |
Plan assets, actual allocation (as a percent) | 1.00% | 3.00% |
Pension Plan | Foreign Plan | Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 50.00% | 54.00% |
Plan assets, actual allocation (as a percent) | 50.00% | 54.00% |
Pension Plan | Foreign Plan | Liability Driven Investment | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 7.00% | 9.00% |
Plan assets, actual allocation (as a percent) | 7.00% | 9.00% |
Pension Plan | Foreign Plan | U.K. Government Gilt Index | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 43.00% | 43.00% |
Plan assets, actual allocation (as a percent) | 43.00% | 43.00% |
Pension Plan | Foreign Plan | Global Index Income Bond | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 0.00% | 2.00% |
Plan assets, actual allocation (as a percent) | 0.00% | 2.00% |
Pension Plan | Foreign Plan | Other types | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 46.00% | 34.00% |
Plan assets, actual allocation (as a percent) | 46.00% | 34.00% |
Pension Plan | Foreign Plan | Multi-Asset Category | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 19.00% | 19.00% |
Plan assets, actual allocation (as a percent) | 19.00% | 19.00% |
Pension Plan | Foreign Plan | Buy-in Contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 21.00% | 10.00% |
Plan assets, actual allocation (as a percent) | 21.00% | 10.00% |
Pension Plan | Foreign Plan | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 6.00% | 5.00% |
Plan assets, actual allocation (as a percent) | 6.00% | 5.00% |
Pension and Postretirement B_14
Pension and Postretirement Benefits (Accumulated and Projected Obligations) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Retirement Benefits [Abstract] | ||
Benefit Obligation | $ 229,793 | $ 613,441 |
Accumulated benefit obligation | 212,906 | 596,584 |
Fair value of plan assets | $ 46,718 | $ 444,929 |
Legal Matters and Contingenci_2
Legal Matters and Contingencies (Details) | Dec. 31, 2019site |
Commitments and Contingencies Disclosure [Abstract] | |
Number of former public waste disposal sites | 5 |
Warranty Reserve (Details)
Warranty Reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |||
Balance — January 1 | $ 32,033 | $ 33,601 | $ 30,459 |
Accruals for warranty expense, net of adjustments | 26,215 | 28,454 | 35,001 |
Settlements made | (27,394) | (30,022) | (31,859) |
Balance — December 31 | $ 30,854 | $ 32,033 | $ 33,601 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Nov. 13, 2014 | |
Dividends per share (in dollars per share) | $ 0.76 | $ 0.76 | $ 0.76 | |
Treasury stock, shares acquired (in shares) | 0 | |||
Treasury Stock, Value, Acquired, Cost Method | $ 15,000,000 | |||
Remaining authorized repurchase amount | $ 145,700,000 | |||
Share repurchase program 2015 | ||||
Authorized repurchase amount | $ 500,000,000 | |||
Treasury stock, shares acquired (in shares) | 324,889 | 0 | 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||
U.S. federal | $ 22,001 | $ 5,150 | $ 59,292 |
Foreign | 61,976 | 36,897 | 22,442 |
State and local | 4,506 | 2,647 | 5,537 |
Total current | 88,483 | 44,694 | 87,271 |
Deferred: | |||
U.S. federal | 2,933 | 11,242 | 135,294 |
Foreign | (12,243) | (4,585) | 34,626 |
State and local | 897 | (127) | 1,488 |
Total deferred | (8,413) | 6,530 | 171,408 |
Total provision | 80,070 | 51,224 | 258,679 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Statutory federal income tax at 21% (21% for 2018 and 35% for 2017) | 71,800 | 37,000 | 92,100 |
Foreign impact, net | 4,500 | (5,900) | (36,400) |
Impact of U.S. Tax Reform Act | 0 | (5,700) | 115,300 |
Change in valuation allowances | 300 | 15,700 | 73,600 |
State and local income taxes, net | 5,400 | 3,700 | 4,900 |
Other, net | $ (1,900) | $ 6,400 | $ 9,200 |
Effective tax rate | 23.40% | 29.10% | 98.40% |
Foreign undistributed earnings taxes | $ 67,930 | $ 70,331 | $ 75,400 |
Deferred tax assets related to: | |||
Retirement benefits | 25,214 | 26,496 | |
Net operating loss carryforwards | 101,193 | 92,630 | |
Compensation accruals | 24,685 | 25,993 | |
Inventories | 33,773 | 25,553 | |
Credit and capital loss carryforwards | 131,744 | 16,056 | |
Warranty and accrued liabilities | 7,042 | 2,763 | |
Bad debt reserve | 30,884 | 28,194 | |
Other | 25,339 | 32,253 | |
Total deferred tax assets | 379,874 | 249,938 | |
Valuation allowances | (266,414) | (133,929) | |
Net deferred tax assets | 113,460 | 116,009 | |
Deferred tax liabilities related to: | |||
Property, plant and equipment | (26,545) | (18,773) | |
Goodwill and intangibles | (114,567) | (123,692) | |
Foreign undistributed earnings taxes | 67,930 | 70,331 | 75,400 |
Other | (12,623) | (17,935) | |
Total deferred tax liabilities | 221,665 | 230,731 | |
Deferred tax liabilities, net | (108,205) | (114,722) | |
Operating loss carryforward | 417,300 | ||
Net operating loss carryforwards and other deferred tax assets | 134,700 | ||
Earnings before income taxes comprised: | |||
U.S. | 129,917 | 88,674 | 102,372 |
Foreign | 211,933 | 87,600 | 160,635 |
Total | 341,850 | 176,274 | 263,007 |
Reconciliation of the total gross amount of unrecognized tax benefits, excluding interest and penalities: | |||
Balance — | 41,200 | 51,500 | 59,300 |
Gross amount of increase (decrease) in unrecognized tax benefits resulting from tax positions taken: | |||
During a prior year | (6,600) | (3,500) | |
During a prior year | 8,800 | ||
During the current period | 6,300 | 4,000 | 5,500 |
Decreases in unrecognized tax benefits relating to: | |||
Settlements with taxing authorities | (11,400) | (2,700) | (10,800) |
Lapse of the applicable statute of limitations | (3,200) | (3,700) | (3,100) |
(Decrease) increase in unrecognized tax benefits relating to foreign currency translation adjustments | 4,100 | ||
(Decrease) increase in unrecognized tax benefits relating to foreign currency translation adjustments | (1,100) | (1,300) | |
Balance — | 40,600 | $ 41,200 | $ 51,500 |
Gross unrecognized tax benefits | 54,200 | ||
Gross unrecognized tax benefits, accrued interest and penalties | 13,600 | ||
Unrecognized tax benefits, if recognized, would favorably impact effective tax rate | 53,600 | ||
Unrecognized tax benefits minimum amount of estimated reduction within the next twelve months | 5,000 | ||
State and Local Jurisdiction | |||
Deferred tax liabilities related to: | |||
Operating loss carryforward | 38,000 | ||
Foreign Tax Authority | |||
Deferred tax liabilities related to: | |||
Operating loss carryforward | 102,600 | ||
Tax credit carryforward | 29,100 | ||
Tax credit carryforward | $ 29,100 |
Business Segment Information (R
Business Segment Information (Reportable Segments) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)segments | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of operating segments (in segments) | segments | 2 | ||||||||||
Summarized financial information of the reportable segments | |||||||||||
Sales to external customers | $ 1,068,200 | $ 996,500 | $ 990,100 | $ 890,100 | $ 986,900 | $ 952,700 | $ 973,100 | $ 920,000 | $ 3,944,850 | $ 3,832,666 | $ 3,660,831 |
Intersegment sales | 0 | 0 | 0 | ||||||||
Segment operating income (loss) | 406,040 | 247,538 | 341,135 | ||||||||
Depreciation and amortization | 104,481 | 112,473 | 118,454 | ||||||||
Identifiable assets | 4,919,642 | 4,616,277 | 4,919,642 | 4,616,277 | 4,910,474 | ||||||
Capital expenditures | 66,170 | 83,993 | 61,602 | ||||||||
Subtotal—Reportable Segments | |||||||||||
Summarized financial information of the reportable segments | |||||||||||
Sales to external customers | 3,944,850 | 3,832,666 | 3,660,831 | ||||||||
Intersegment sales | 5,464 | 6,453 | 5,988 | ||||||||
Segment operating income (loss) | 541,486 | 402,197 | 435,969 | ||||||||
Depreciation and amortization | 74,422 | 94,733 | 104,802 | ||||||||
Identifiable assets | 4,308,087 | 4,037,596 | 4,308,087 | 4,037,596 | 4,299,766 | ||||||
Capital expenditures | 40,899 | 55,106 | 44,784 | ||||||||
FPD | |||||||||||
Summarized financial information of the reportable segments | |||||||||||
Sales to external customers | 2,704,445 | 2,620,488 | 2,477,738 | ||||||||
Intersegment sales | 1,833 | 2,816 | 970 | ||||||||
Segment operating income (loss) | 343,514 | 200,981 | 112,287 | ||||||||
Depreciation and amortization | 50,845 | 68,148 | 77,524 | ||||||||
Identifiable assets | 2,974,161 | 2,768,879 | 2,974,161 | 2,768,879 | 2,981,822 | ||||||
Capital expenditures | 26,450 | 40,648 | 28,158 | ||||||||
FCD | |||||||||||
Summarized financial information of the reportable segments | |||||||||||
Sales to external customers | 1,240,405 | 1,212,178 | 1,183,093 | ||||||||
Intersegment sales | 3,631 | 3,637 | 5,018 | ||||||||
Segment operating income (loss) | 197,972 | 201,216 | 323,682 | ||||||||
Depreciation and amortization | 23,577 | 26,585 | 27,278 | ||||||||
Identifiable assets | 1,333,926 | 1,268,717 | 1,333,926 | 1,268,717 | 1,317,944 | ||||||
Capital expenditures | 14,449 | 14,458 | 16,626 | ||||||||
Eliminations and All Other | |||||||||||
Summarized financial information of the reportable segments | |||||||||||
Sales to external customers | 0 | 0 | 0 | ||||||||
Intersegment sales | (5,464) | (6,453) | (5,988) | ||||||||
Segment operating income (loss) | (135,446) | (154,659) | (94,834) | ||||||||
Depreciation and amortization | 30,059 | 17,740 | 13,652 | ||||||||
Identifiable assets | $ 611,555 | $ 578,681 | 611,555 | 578,681 | 610,708 | ||||||
Capital expenditures | $ 25,271 | $ 28,887 | $ 16,818 |
Business Segment Information (S
Business Segment Information (Sales and Long-lived Assets by Geographic Area) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 1,068,200 | $ 996,500 | $ 990,100 | $ 890,100 | $ 986,900 | $ 952,700 | $ 973,100 | $ 920,000 | $ 3,944,850 | $ 3,832,666 | $ 3,660,831 |
Percentage | 100.00% | 100.00% | 100.00% | ||||||||
Long-Lived Assets | $ 985,578 | $ 800,260 | $ 985,578 | $ 800,260 | $ 871,518 | ||||||
Percentage | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | ||||||
Sales Revenue, Goods, Net | Geographic Concentration Risk | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Percentage of net sales to international customers to total sales | 63.00% | 63.00% | 64.00% | ||||||||
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 1,637,736 | $ 1,525,930 | $ 1,460,899 | ||||||||
Percentage | 41.50% | 39.80% | 40.00% | ||||||||
Long-Lived Assets | $ 464,216 | $ 323,883 | $ 464,216 | $ 323,883 | $ 333,126 | ||||||
Percentage | 47.10% | 40.50% | 47.10% | 40.50% | 38.20% | ||||||
EMA | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 1,397,308 | $ 1,424,498 | $ 1,434,506 | ||||||||
Percentage | 35.40% | 37.20% | 39.20% | ||||||||
Long-Lived Assets | $ 312,668 | $ 280,549 | $ 312,668 | $ 280,549 | $ 321,256 | ||||||
Percentage | 31.70% | 35.10% | 31.70% | 35.10% | 36.90% | ||||||
EMA | Sales Revenue, Goods, Net | Geographic Concentration Risk | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Percentage of net sales to international customers to total sales | 10.00% | ||||||||||
Asia | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 551,759 | $ 539,898 | $ 471,054 | ||||||||
Percentage | 14.00% | 14.10% | 12.90% | ||||||||
Long-Lived Assets | $ 143,848 | $ 132,667 | $ 143,848 | $ 132,667 | $ 148,757 | ||||||
Percentage | 14.60% | 16.60% | 14.60% | 16.60% | 17.10% | ||||||
Asia Pacific | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 819,167 | $ 781,668 | $ 684,198 | ||||||||
Asia Pacific | Sales Revenue, Goods, Net | Geographic Concentration Risk | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Percentage of net sales to international customers to total sales | 10.00% | ||||||||||
Other | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Sales | $ 358,047 | $ 342,340 | $ 294,372 | ||||||||
Percentage | 9.10% | 8.90% | 7.90% | ||||||||
Long-Lived Assets | $ 64,846 | $ 63,161 | $ 64,846 | $ 63,161 | $ 68,379 | ||||||
Percentage | 6.60% | 7.80% | 6.60% | 7.80% | 7.80% | ||||||
Other | Sales Revenue, Goods, Net | Geographic Concentration Risk | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Percentage of net sales to international customers to total sales | 10.00% | ||||||||||
Germany | Sales Revenue, Goods, Net | Geographic Concentration Risk | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Percentage of net sales to international customers to total sales | 6.00% | 7.00% | 10.00% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance - January 1 | $ (569,430) | $ (501,624) | |
Other comprehensive income (loss) before reclassifications | (15,775) | (74,936) | |
Amounts reclassified from AOCL | 6,009 | 7,130 | |
Other comprehensive income (loss) | (9,766) | (67,806) | $ 119,753 |
Balance - December 31 | (579,196) | (569,430) | (501,624) |
Accumulated net loss from net investment hedge, net of tax | 12,100 | 17,200 | |
Net of tax | (6,009) | (7,130) | |
Foreign Currency Translation Items | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance - January 1 | (447,925) | (384,779) | |
Other comprehensive income (loss) before reclassifications | 6,561 | (63,146) | |
Amounts reclassified from AOCL | 0 | 0 | |
Other comprehensive income (loss) | 6,561 | (63,146) | |
Balance - December 31 | (441,364) | (447,925) | (384,779) |
Net of tax | 0 | 0 | |
Pension and other post-retirement effects | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance - January 1 | (120,647) | (115,755) | |
Other comprehensive income (loss) before reclassifications | (22,523) | (12,022) | |
Amounts reclassified from AOCL | 6,009 | 7,130 | |
Other comprehensive income (loss) | (16,514) | (4,892) | |
Balance - December 31 | (137,161) | (120,647) | (115,755) |
Amount of settlement of reclassification adjustment from accumulated other comprehensive income (loss) | (859) | 983 | |
Tax benefit | 1,887 | 1,224 | |
Net of tax | (6,009) | (7,130) | |
Cash flow hedging activity | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance - January 1 | (858) | (1,090) | |
Other comprehensive income (loss) before reclassifications | 187 | 232 | |
Amounts reclassified from AOCL | 0 | 0 | |
Other comprehensive income (loss) | 187 | 232 | |
Balance - December 31 | (671) | (858) | (1,090) |
Net of tax | 0 | 0 | |
Noncontrolling Interests | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Other comprehensive income (loss) | 579 | 668 | 438 |
Foreign currency translation adjustments, attributable to noncontrolling interest | 5,100 | 4,500 | $ 3,800 |
Amortization of actuarial losses | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Reclassification from AOCI, before tax | (6,608) | (9,140) | |
Prior service costs | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Reclassification from AOCI, before tax | $ (429) | $ (197) |
Realignment and Transformatio_3
Realignment and Transformation Programs (Details) $ in Thousands | Jun. 29, 2018site | Dec. 31, 2019USD ($)site | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ (16,252) | $ 24,024 | $ 186,997 | |
Non-Restructuring Charges | 20,185 | 28,908 | 164,713 | |
Transformation Charges | 28,039 | 41,168 | ||
Total Realignment and Transformation Charges | 31,972 | 94,100 | ||
Total Realignment Charges | 351,710 | |||
Restructuring Reserve [Roll Forward] | ||||
Beginning Balance | 11,927 | 39,230 | ||
Charges | (16,252) | 24,024 | 186,997 | |
Ending Balance | 6,703 | 11,927 | 6,703 | |
FPD | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | (19,461) | 19,258 | 145,191 | |
Non-Restructuring Charges | 13,542 | 25,129 | 121,330 | |
Total Realignment and Transformation Charges | (5,919) | 44,387 | ||
Total Realignment Charges | 266,521 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | $ (19,461) | 19,258 | 145,191 | |
Divestiture of locations | site | 2 | 2 | ||
FCD | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 3,209 | 4,728 | 41,489 | |
Non-Restructuring Charges | 1,960 | (1,801) | 23,190 | |
Total Realignment and Transformation Charges | 5,169 | 2,927 | ||
Total Realignment Charges | 64,679 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 3,209 | 4,728 | 41,489 | |
Subtotal—Reportable Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | (16,252) | 23,986 | 186,680 | |
Non-Restructuring Charges | 15,502 | 23,328 | 144,520 | |
Total Realignment and Transformation Charges | (750) | 47,314 | ||
Total Realignment Charges | 331,200 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | (16,252) | 23,986 | 186,680 | |
Eliminations and All Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0 | 38 | 317 | |
Non-Restructuring Charges | 4,683 | 5,580 | 20,193 | |
Transformation Charges | 28,039 | 41,168 | ||
Total Realignment and Transformation Charges | 32,722 | 46,786 | ||
Total Realignment Charges | 20,510 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 0 | 38 | 317 | |
Cost of Sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 3,802 | 22,775 | 139,869 | |
Non-Restructuring Charges | 13,435 | 19,923 | 95,645 | |
Total Realignment and Transformation Charges | 17,237 | 42,698 | ||
Total Realignment Charges | 235,514 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 3,802 | 22,775 | 139,869 | |
Cost of Sales | FPD | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 1,149 | 18,405 | 110,191 | |
Non-Restructuring Charges | 11,438 | 21,072 | 79,922 | |
Total Realignment and Transformation Charges | 12,587 | 39,477 | ||
Total Realignment Charges | 190,113 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 1,149 | 18,405 | 110,191 | |
Cost of Sales | FCD | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 2,653 | 4,370 | 29,678 | |
Non-Restructuring Charges | 1,742 | (1,149) | 15,460 | |
Total Realignment and Transformation Charges | 4,395 | 3,221 | ||
Total Realignment Charges | 45,138 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 2,653 | 4,370 | 29,678 | |
Cost of Sales | Subtotal—Reportable Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 3,802 | 22,775 | 139,869 | |
Non-Restructuring Charges | 13,180 | 19,923 | 95,382 | |
Total Realignment and Transformation Charges | 16,982 | 42,698 | ||
Total Realignment Charges | 235,251 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 3,802 | 22,775 | 139,869 | |
Cost of Sales | Eliminations and All Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0 | 0 | 0 | |
Non-Restructuring Charges | 255 | 0 | 263 | |
Total Realignment and Transformation Charges | 255 | 0 | ||
Total Realignment Charges | 263 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 0 | 0 | 0 | |
Selling, General and Administrative Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | (16,054) | 2,249 | 30,628 | |
Non-Restructuring Charges | 6,750 | 8,985 | 69,068 | |
Transformation Charges | 28,039 | 41,168 | ||
Total Realignment and Transformation Charges | 18,735 | 52,402 | ||
Total Realignment Charges | 99,696 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | (16,054) | 2,249 | 30,628 | |
Selling, General and Administrative Expenses | FPD | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | (16,610) | 1,853 | 20,300 | |
Non-Restructuring Charges | 2,104 | 4,057 | 41,408 | |
Total Realignment and Transformation Charges | (14,506) | 5,910 | ||
Total Realignment Charges | 61,708 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | (16,610) | 1,853 | 20,300 | |
Selling, General and Administrative Expenses | FCD | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 556 | 358 | 10,011 | |
Non-Restructuring Charges | 218 | (652) | 7,730 | |
Total Realignment and Transformation Charges | 774 | (294) | ||
Total Realignment Charges | 17,741 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 556 | 358 | 10,011 | |
Selling, General and Administrative Expenses | Subtotal—Reportable Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | (16,054) | 2,211 | 30,311 | |
Non-Restructuring Charges | 2,322 | 3,405 | 49,138 | |
Total Realignment and Transformation Charges | (13,732) | 5,616 | ||
Total Realignment Charges | 79,449 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | (16,054) | 2,211 | 30,311 | |
Selling, General and Administrative Expenses | Eliminations and All Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0 | 38 | 317 | |
Non-Restructuring Charges | 4,428 | 5,580 | 19,930 | |
Transformation Charges | 28,039 | 41,168 | ||
Total Realignment and Transformation Charges | 32,467 | 46,786 | ||
Total Realignment Charges | 20,247 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 0 | 38 | 317 | |
Selling, General and Administrative Expenses | Eliminations and All Other | Flowserve 2.0 Transformation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Transformation Charges | 28,000 | 41,200 | ||
Income tax expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | (4,000) | (1,000) | 16,500 | |
Total Realignment and Transformation Charges | (4,000) | (1,000) | ||
Total Realignment Charges | 16,500 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | (4,000) | (1,000) | 16,500 | |
Income tax expense | FPD | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | (4,000) | (1,000) | 14,700 | |
Total Realignment and Transformation Charges | (4,000) | (1,000) | ||
Total Realignment Charges | 14,700 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | (4,000) | (1,000) | 14,700 | |
Income tax expense | FCD | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0 | 0 | 1,800 | |
Total Realignment and Transformation Charges | 0 | 0 | ||
Total Realignment Charges | 1,800 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 0 | 0 | 1,800 | |
Income tax expense | Subtotal—Reportable Segments | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | (4,000) | (1,000) | 16,500 | |
Total Realignment and Transformation Charges | (4,000) | (1,000) | ||
Total Realignment Charges | 16,500 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | (4,000) | (1,000) | 16,500 | |
Income tax expense | Eliminations and All Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0 | 0 | 0 | |
Total Realignment and Transformation Charges | 0 | 0 | ||
Total Realignment Charges | 0 | |||
Restructuring Reserve [Roll Forward] | ||||
Charges | 0 | 0 | 0 | |
Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 4,394 | 4,850 | 121,299 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | 4,394 | 4,850 | 121,299 | |
Severance | Cost of Sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 2,183 | 2,975 | 87,343 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | 2,183 | 2,975 | 87,343 | |
Severance | Selling, General and Administrative Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 2,211 | 1,875 | 33,956 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | 2,211 | 1,875 | 33,956 | |
Severance | Income tax expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0 | 0 | 0 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | 0 | 0 | 0 | |
Contract Termination | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 58 | 5 | 1,008 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | 58 | 5 | 1,008 | |
Contract Termination | Cost of Sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 58 | 5 | 965 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | 58 | 5 | 965 | |
Contract Termination | Selling, General and Administrative Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0 | 0 | 43 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | 0 | 0 | 43 | |
Contract Termination | Income tax expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0 | 0 | 0 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | 0 | 0 | 0 | |
Asset Write-Downs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | (20,211) | 9,030 | 5,813 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | (20,211) | 9,030 | 5,813 | |
Asset Write-Downs | Cost of Sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | (1,782) | 9,018 | 22,553 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | (1,782) | 9,018 | 22,553 | |
Asset Write-Downs | Selling, General and Administrative Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | (18,429) | 12 | (16,740) | |
Restructuring Reserve [Roll Forward] | ||||
Charges | (18,429) | 12 | (16,740) | |
Asset Write-Downs | Income tax expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 0 | 0 | 0 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | 0 | 0 | 0 | |
Other | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | (493) | 10,139 | 58,877 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | (493) | 10,139 | 58,877 | |
Other | Cost of Sales | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 3,343 | 10,777 | 29,008 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | 3,343 | 10,777 | 29,008 | |
Other | Selling, General and Administrative Expenses | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 164 | 362 | 13,369 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | 164 | 362 | 13,369 | |
Other | Income tax expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | (4,000) | (1,000) | 16,500 | |
Restructuring Reserve [Roll Forward] | ||||
Charges | (4,000) | (1,000) | $ 16,500 | |
Charges Expected to be Settled in Cash | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 7,958 | 15,996 | ||
Restructuring Reserve [Roll Forward] | ||||
Charges | 7,958 | 15,996 | ||
Restructuring Cash Payment | ||||
Restructuring Reserve [Roll Forward] | ||||
Cash expenditures | (12,865) | (28,267) | ||
Other Non-Cash Adjustments | ||||
Restructuring Reserve [Roll Forward] | ||||
Other non-cash adjustments, including currency | $ (317) | $ (15,032) |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||
Sales | $ 1,068,200 | $ 996,500 | $ 990,100 | $ 890,100 | $ 986,900 | $ 952,700 | $ 973,100 | $ 920,000 | $ 3,944,850 | $ 3,832,666 | $ 3,660,831 | ||||||||
Gross profit | 349,600 | 333,700 | 318,000 | 294,100 | 321,800 | 308,500 | 286,100 | 271,400 | 1,295,370 | 1,187,836 | 1,088,953 | ||||||||
Earnings before income taxes | 86,700 | 96,200 | 82,900 | 76,100 | 78,600 | 44,400 | 28,300 | 25,000 | 341,850 | 176,274 | 263,007 | ||||||||
Net earnings attributable to Flowserve Corporation | $ 69,800 | $ 68,400 | $ 58,200 | $ 57,300 | $ 63,100 | $ 28,200 | $ 13,200 | $ 15,100 | $ 253,668 | $ 119,671 | $ 2,652 | ||||||||
Earnings per share: | |||||||||||||||||||
Basic (in dollars per share) | $ 0.53 | [1] | $ 0.52 | [1] | $ 0.44 | [1] | $ 0.44 | [1] | $ 0.48 | [1] | $ 0.22 | [1] | $ 0.10 | [1] | $ 0.12 | [1] | $ 1.94 | $ 0.91 | $ 0.02 |
Diluted (in dollars per share) | $ 0.53 | [1] | $ 0.52 | [1] | $ 0.44 | [1] | $ 0.44 | [1] | $ 0.48 | [1] | $ 0.21 | [1] | $ 0.10 | [1] | $ 0.12 | [1] | $ 1.93 | $ 0.91 | $ 0.02 |
[1] | Earnings per share is computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in weighted average quarterly shares outstanding. |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Additions Charged to Cost and Expenses | $ (300) | $ (15,700) | $ (73,600) | |
Allowance for doubtful accounts | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Year | [1] | 51,501 | 59,113 | 51,920 |
Additions Charged to Cost and Expenses | [1] | 9,906 | 8,050 | 14,508 |
Additions Charged to Other Accounts— Acquisitions and Related Adjustments | [1] | 0 | 0 | 0 |
Deductions From Reserve | [1] | (7,995) | (15,662) | (7,315) |
Balance at End of Year | [1] | 53,412 | 51,501 | 59,113 |
Deferred tax asset valuation allowance | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Year | [2] | 133,929 | 119,309 | 36,191 |
Additions Charged to Cost and Expenses | [2] | 145,010 | 32,157 | 86,694 |
Additions Charged to Other Accounts— Acquisitions and Related Adjustments | [2] | 1,832 | (7,551) | 2,595 |
Deductions From Reserve | [2] | (14,357) | (9,986) | (6,171) |
Balance at End of Year | [2] | $ 266,414 | $ 133,929 | $ 119,309 |
[1] | Deductions from reserve represent accounts written off and recoveries. | |||
[2] | Deductions from reserve represent accounts written off and recoveries. |
Uncategorized Items - fls123120
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 19,642,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 19,642,000 |