Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 01, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
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, City or Town | Irving, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75039 | ||
City Area Code | (972) | ||
Local Phone Number | 443-6500 | ||
Title of 12(b) Security | Common Stock, $1.25 Par Value | ||
Trading Symbol | FLS | ||
Security Exchange Name | NYSE | ||
Entity 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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,414,922,893 | ||
Entity Common Stock, Shares Outstanding | 131,117,928 | ||
Documents Incorporated by Reference | Certain information contained in the definitive proxy statement for the registrant’s 2023 Annual Meeting of Shareholders scheduled to be held on May 25, 2023 is incorporated by reference into Part III hereof. | ||
Entity Central Index Key | 0000030625 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Address, Address Line One | 5215 N. O'Connor Boulevard Suite 700, |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Dallas, Texas |
Auditor Firm ID | 238 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 434,971 | $ 658,452 |
Accounts receivable, net | 868,632 | 739,210 |
Contract assets, net | 233,457 | 195,598 |
Inventories, net | 803,198 | 678,287 |
Prepaid expenses and other | 110,714 | 117,130 |
Total current assets | 2,450,972 | 2,388,677 |
Property, plant and equipment, net | 500,945 | 515,927 |
Operating lease right-of-use assets, net | 174,980 | 193,863 |
Goodwill | 1,168,124 | 1,196,479 |
Deferred taxes | 149,290 | 44,049 |
Other intangible assets, net | 134,503 | 152,463 |
Other assets, net | 211,820 | 258,310 |
Total assets | 4,790,634 | 4,749,768 |
Current liabilities: | ||
Accounts payable | 476,747 | 410,062 |
Accrued liabilities | 427,578 | 445,092 |
Contract liabilities | 256,963 | 202,965 |
Debt due within one year | 49,335 | 41,058 |
Operating lease liabilities | 32,528 | 32,628 |
Total current liabilities | 1,243,151 | 1,131,805 |
Long-term debt due after one year | 1,224,151 | 1,261,770 |
Operating lease liabilities | 155,196 | 166,786 |
Retirement obligations and other liabilities | 309,529 | 352,062 |
Commitments and contingencies (See Note 15) | ||
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 | 507,484 | 506,386 |
Retained earnings | 3,774,209 | 3,691,023 |
Treasury shares, at cost — 46,359 and 46,794 shares, respectively | (2,036,882) | (2,057,706) |
Deferred compensation obligation | 6,979 | 7,214 |
Accumulated other comprehensive loss | (647,788) | (563,589) |
Total Flowserve Corporation shareholders’ equity | 1,824,993 | 1,804,319 |
Noncontrolling interests | 33,614 | 33,026 |
Total equity | 1,858,607 | 1,837,345 |
Total liabilities and equity | $ 4,790,634 | $ 4,749,768 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
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) | 46,359 | 46,794 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Sales | $ 3,615,120 | $ 3,541,060 | $ 3,728,134 |
Cost of sales | (2,620,825) | (2,491,335) | (2,611,365) |
Gross profit | 994,295 | 1,049,725 | 1,116,769 |
Selling, general and administrative expense | (815,545) | (797,076) | (878,245) |
Gain on sale of business | 0 | 1,806 | 0 |
Net earnings from affiliates | 18,469 | 16,304 | 11,753 |
Operating income | 197,219 | 270,759 | 250,277 |
Interest expense | (46,247) | (57,617) | (56,185) |
Loss on extinguishment of debt | 0 | (46,176) | (1,201) |
Interest income | 3,963 | 2,764 | 4,175 |
Other income (expense), net | (559) | (36,142) | 5,226 |
Earnings before income taxes | 154,376 | 133,588 | 202,292 |
(Provision for) benefit from income taxes | 43,639 | 2,594 | (61,417) |
Net earnings, including noncontrolling interests | 198,015 | 136,182 | 140,875 |
Less: Net earnings attributable to noncontrolling interests | (9,326) | (10,233) | (10,455) |
Net earnings attributable to Flowserve Corporation | $ 188,689 | $ 125,949 | $ 130,420 |
Net earnings per share attributable to Flowserve Corporation common shareholders: | |||
Basic (in dollars per share) | $ 1.44 | $ 0.97 | $ 1 |
Diluted (in dollars per share) | $ 1.44 | $ 0.96 | $ 1 |
Weighted average shares - basic (in shares) | 130,630 | 130,305 | 130,395 |
Weighted average shares - diluted (in shares) | 131,315 | 130,857 | 131,050 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings, including noncontrolling interests | $ 198,015 | $ 136,182 | $ 140,875 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments, net of deferred taxes of $(20,526), $(875) and $11,104 in 2022, 2021 and 2020, respectively | (98,658) | 524 | (15,185) |
Pension and other postretirement effects, net of deferred taxes of $(8,423), $(7,474) and $(311) in 2022, 2021 and 2020, respectively | 15,309 | 45,058 | (9,562) |
Cash flow hedging activity, net of deferred taxes of $286, $0 and $0 in 2022, 2021 and 2020, respectively | 403 | (848) | 183 |
Other comprehensive income (loss) | (82,946) | 44,734 | (24,564) |
Comprehensive income, including noncontrolling interests | 115,069 | 180,916 | 116,311 |
Comprehensive (income) attributable to noncontrolling interests | (10,579) | (8,930) | (11,225) |
Comprehensive income attributable to Flowserve Corporation | $ 104,490 | $ 171,986 | $ 105,086 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Foreign curency translation, taxes | $ (20,526) | $ (875) | $ 11,104 |
Pension and other postretirement effects, taxes | (8,423) | (7,474) | (311) |
Cash flow hedging activity | $ 286 | $ 0 | $ 0 |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Adoption of ASU 2016-13 | Common Stock | Capital in Excess of Par Value | Retained Earnings | Retained Earnings Adoption of ASU 2016-13 | Treasury Stock | Deferred Compensation Obligation | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests |
Balance — (in shares) at Dec. 31, 2019 | 176,793 | 46,262 | ||||||||
Balance — at Dec. 31, 2019 | $ 1,772,341 | $ (7,291) | $ 220,991 | $ 501,045 | $ 3,652,244 | $ (7,291) | $ (2,051,583) | $ 8,334 | $ (584,292) | $ 25,602 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock activity under stock plans (in shares) | 551 | |||||||||
Stock activity under stock plans | (3,854) | (26,070) | $ 24,386 | (2,170) | ||||||
Stock-based compensation | 27,252 | 27,252 | ||||||||
Net earnings | 140,875 | 130,420 | 10,455 | |||||||
Cash dividends declared ($0.80 per share) | (104,830) | (104,830) | ||||||||
Repurchases of common shares (in shares) | (1,057) | |||||||||
Repurchases of common shares | (32,112) | $ (32,112) | ||||||||
Other comprehensive income (loss), net of tax | (24,564) | (25,333) | 769 | |||||||
Other, net | (6,496) | 0 | (6,496) | |||||||
Balance — (in shares) at Dec. 31, 2020 | 176,793 | 46,768 | ||||||||
Balance — at Dec. 31, 2020 | 1,761,321 | $ 220,991 | 502,227 | 3,670,543 | $ (2,059,309) | 6,164 | (609,625) | 30,330 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock activity under stock plans (in shares) | 414 | |||||||||
Stock activity under stock plans | (5,136) | (25,320) | $ 19,134 | 1,050 | ||||||
Stock-based compensation | 29,479 | 29,479 | ||||||||
Net earnings | 136,182 | 125,949 | 10,233 | |||||||
Cash dividends declared ($0.80 per share) | (105,469) | (105,469) | ||||||||
Repurchases of common shares (in shares) | (440) | |||||||||
Repurchases of common shares | (17,531) | $ (17,531) | ||||||||
Other comprehensive income (loss), net of tax | 44,734 | 46,036 | (1,302) | |||||||
Other, net | $ (6,235) | (6,235) | ||||||||
Balance — (in shares) at Dec. 31, 2021 | 176,793 | 176,793 | 46,794 | |||||||
Balance — at Dec. 31, 2021 | $ 1,837,345 | $ 220,991 | 506,386 | 3,691,023 | $ (2,057,706) | 7,214 | (563,589) | 33,026 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Stock activity under stock plans (in shares) | 435 | |||||||||
Stock activity under stock plans | (3,843) | (24,432) | $ 20,824 | (235) | ||||||
Stock-based compensation | 25,530 | 25,530 | ||||||||
Net earnings | 198,015 | 188,689 | 9,326 | |||||||
Cash dividends declared ($0.80 per share) | (105,503) | (105,503) | ||||||||
Repurchases of common shares (in shares) | 0 | |||||||||
Repurchases of common shares | 0 | $ 0 | ||||||||
Other comprehensive income (loss), net of tax | (82,946) | (84,199) | 1,253 | |||||||
Other, net | $ (9,991) | (9,991) | ||||||||
Balance — (in shares) at Dec. 31, 2022 | 176,793 | 176,793 | 46,359 | |||||||
Balance — at Dec. 31, 2022 | $ 1,858,607 | $ 220,991 | $ 507,484 | $ 3,774,209 | $ (2,036,882) | $ 6,979 | $ (647,788) | $ 33,614 |
Consolidated Statement of Sha_2
Consolidated Statement of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends per share (in USD per share) | $ 0.80 | $ 0.80 | $ 0.80 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows — Operating activities: | |||
Net earnings, including noncontrolling interests | $ 198,015 | $ 136,182 | $ 140,875 |
Adjustments to reconcile net earnings to net cash provided (used) by operating activities: | |||
Depreciation | 77,636 | 85,175 | 86,175 |
Amortization of intangible and other assets | 13,317 | 14,647 | 14,578 |
Loss on extinguishment of debt | 0 | 46,176 | 1,201 |
Stock-based compensation | 25,530 | 29,478 | 27,252 |
Foreign currency, asset write downs and other non-cash adjustments | (27,758) | 29,772 | 4,277 |
Change in assets and liabilities: | |||
Accounts receivable, net | (152,011) | (8,675) | 45,648 |
Inventories, net | (147,492) | (32,124) | 15,306 |
Contract assets, net | (41,768) | 74,333 | 4,258 |
Prepaid expenses and other assets, net | 17,461 | 1,302 | 34,262 |
Accounts payable | 78,968 | (19,505) | (22,571) |
Contract liabilities | 61,684 | 14,196 | (34,066) |
Accrued liabilities and income taxes payable | (5,226) | (13,948) | 50,203 |
Retirement obligations and other | (1,430) | (15,690) | 3,636 |
Net deferred taxes | (136,936) | (91,200) | (60,497) |
Net cash flows provided (used) by operating activities | (40,010) | 250,119 | 310,537 |
Cash flows — Investing activities: | |||
Capital expenditures | (76,287) | (54,936) | (57,405) |
Proceeds from disposal of assets | 4,422 | 2,663 | 15,705 |
Proceeds from termination of cross-currency swap | (66,004) | 0 | 0 |
Affiliate investment activity | (225) | (7,204) | 0 |
Net cash flows provided (used) by investing activities | (6,086) | (59,477) | (41,700) |
Cash flows — Financing activities: | |||
Payments on senior notes | 0 | (1,243,548) | (191,258) |
Proceeds from issuance of senior notes | 0 | 498,280 | 498,280 |
Payments on long-term debt | (32,500) | (7,500) | 0 |
Proceeds from issuance of long-term debt | 0 | 300,000 | 0 |
Payments of deferred loan costs | 0 | (6,739) | (4,572) |
Proceeds from short-term financing | 45,000 | 0 | 0 |
Payments on short-term financing | (45,000) | 0 | 0 |
Proceeds under other financing arrangements | 1,733 | 1,408 | 2,285 |
Payments under other financing arrangements | (1,790) | (2,086) | (5,088) |
Payments related to tax withholding for stock-based compensation | (4,683) | (5,984) | (4,607) |
Repurchases of common shares | 0 | (17,531) | (32,112) |
Payments of dividends | (104,549) | (104,604) | (104,159) |
Other | (8,223) | (11,403) | (11,182) |
Net cash flows provided (used) by financing activities | (150,012) | (599,707) | 147,587 |
Effect of exchange rate changes on cash | (27,373) | (27,757) | 7,870 |
Net change in cash and cash equivalents | (223,481) | (436,822) | 424,294 |
Cash and cash equivalents at beginning of year | 658,452 | 1,095,274 | 670,980 |
Cash and cash equivalents at end of year | 434,971 | 658,452 | 1,095,274 |
Income taxes paid (net of refunds) | 60,085 | 65,621 | 75,342 |
Interest paid | $ 41,629 | $ 72,247 | $ 57,041 |
Significant Accounting Policies
Significant Accounting Policies and Accounting Developments | 12 Months Ended |
Dec. 31, 2022 | |
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. Coronavirus Pandemic ("COVID-19") — Over the past year, we continued to respond to the macroeconomics and global economic impacts caused by COVID-19. Many of our suppliers have experienced varying lengths of production and shipping delays related to the effects of COVID-19. These conditions have had an adverse impact on the speed at which we can manufacture and ship our products to customers, and have also led to an increase in logistics, transportation and freight costs. As a result of the macroeconomic impacts, we have also experienced labor constraints and inflationary pressures. The Company's condensed consolidated financial statements presented reflect management's estimates and assumptions regarding the effects of COVID-19 as of the date of the condensed consolidated financial statements. Russia and Ukraine Conflict - In response to the ongoing military conflict in Ukraine, several countries, including the United States, have imposed economic sanctions and export controls on certain industry sectors and parties in Russia. As a result of this conflict, including the aforementioned sanctions and overall instability in the region, in February 2022 we stopped accepting new orders in Russia and temporarily suspended fulfillment of existing orders. In March 2022, we made the decision to permanently cease all Company operations in Russia. We have commenced the necessary actions to cease operations of our Russian subsidiary, including taking steps to cancel existing contracts with customers, terminate our approximately 50 Russia-based employees and terminate other related contractual commitments. As a result of the conflict and the resulting macroeconomic impacts we have also experienced supply shortages and inflationary pressures. In 2021, our Russian subsidiary had approximately $14 million of sales with an additional $36 million of sales from certain of our other foreign subsidiaries into the Russian market. As of March 31, 2022, the net assets held on our Russian subsidiary's balance sheet were $2.7 million, including $7.1 million of cash, $3.6 million of accounts receivables, a $9.3 million net intercompany payable position and other immaterial amounts. In addition, certain of our other foreign subsidiaries had open contracts with Russian customers that were subsequently cancelled for which revenue had been previously recognized over time utilizing the percentage of completion ("POC") method. As a result of the above, in the first quarter of 2022 we recorded a $20.2 million pre-tax charge ($21.0 million after-tax) to reserve the asset positions of our Russian subsidiary (excluding cash) as of March 31, 2022, to record contra-revenue for previously recognized revenue and estimated cancellation fees on open contracts that were previously accounted for under POC and subsequently canceled, to establish a reserve for the estimated cost to exit the operations of our Russian subsidiary and to record a reserve for our estimated financial exposure on contracts that have or are anticipated to be cancelled. We reevaluated our financial exposure as of December 31, 2022 and recorded an incremental $13.6 million pre-tax charge ($9.8 million after-tax) in the fourth quarter of 2022 for additional contract cancellation fees and to reserve our residual financial exposure due to increased Russia sanctions imposed during the latter part of 2022 and our decision to cancel backlog as a result of the additional sanctions. The following table presents the above impacts of the Russia pre-tax charge: Year Ended December 31, 2022 (Amounts in thousands) Flowserve Pump Division Flow Control Division Consolidated Total Sales $ (9,330) $ — $ (9,330) Cost of sales ("COS") 7,442 1,418 8,860 Gross loss (16,772) (1,418) (18,190) Selling, general and administrative expense ("SG&A") 13,977 1,720 15,697 Operating loss $ (30,749) $ (3,138) $ (33,887) We continue to monitor the situation involving Russia and Ukraine and its impact on the rest of our global business. This includes the macroeconomic impact, including with respect to global supply chain issues and inflationary pressures. To date, these impacts have not been material to our business and we do not currently expect that any incremental impact in future quarters, including any financial impacts caused by our cancellation of customer contracts and ceasing of operations in Russia, will be material to the Company. Acquisition — On February 9, 2023 the Company entered into a definitive agreement under which it will acquire all of the outstanding equity of Velan Inc., a manufacturer of highly engineered industrial valves, in an all cash transaction valued at approximately $245 million. The transaction is subject to customary closing conditions, including applicable regulatory approvals and target shareholder approval, and is expected to close by the end of the second quarter of 2023. Principles of Consolidation — The consolidated financial statements include the accounts of our company and our wholly and majority-owned subsidiaries. In addition, we 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. In the ordinary course of our operations worldwide, we have entered into joint ventures and interests (collectively referred to as “affiliates”) to provide greater flexibility in delivering our products and services, gain access to markets and geographical locations and reduce exposure and diversify risk. Investments in affiliate companies with a noncontrolling ownership interests between 20% and 50%, are unconsolidated and 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"). All equity method investments are reviewed for impairment whenever events and conditions indicate that a decrease in the value of an investment has occurred that is other than temporary. If impaired, an impairment loss representing the difference between our carrying value and fair value is recorded and the investment is written down to a new carrying value. Investment in affiliate companies where we own less than 20% 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. Reclassifications — Certain reclassifications have been made to prior year financial information to conform to the current year presentation. 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 — 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. Service-related revenues do not typically represent a significant portion contracts with our customers and do not meet the thresholds requiring separate disclosure. 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. Accounts Receivable, Allowance for Expected Credit Losses and Credit Risk — Trade accounts receivables are recorded at the invoiced amount and do not bear interest. We establish an allowance for expected credit losses on an aging schedule and according to historical losses as determined from our billings and collections history. Additionally, we consider factors that are specific to our customers’ credit risk such as financial difficulties, liquidity issues, insolvency, and country and political risk. We also consider both the current and forecasted direction of macroeconomic conditions at the reporting date in estimating expected credit losses. Receivables are written off against the allowance in the period when the receivable is deemed to be uncollectible and further collection efforts have ceased. Subsequent recoveries of amounts previously written off are reflected as a reduction to credit impairment losses in the income statement. 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. We are a defendant in a number of lawsuits that seek to recover damages for personal injury allegedly resulting from exposure to asbestos-containing products formerly manufactured and/or distributed by heritage companies of the Company. We have estimated that the liability for pending and future claims not yet asserted, and which are probable and estimable, could be experienced through 2052, which represents the expected end of our asbestos liability exposure with no further ongoing claims expected beyond that date. This estimate is based on the Company's historical claim experience and estimates of the number and resolution cost of potential future claims that may be filed based on anticipated levels of unique plaintiff asbestos-related claims in the U.S. tort system against all defendants, the diminished volatility and consistency of observable claims data, the period of time that has elapsed since we stopped manufacturing products that contained encapsulated asbestos and an expected downward trend in claims due to the average age of our claimants. This estimate is not discounted to present value. In light of the uncertainties and variables inherent in the long-term projection of the total asbestos liability, as part of our ongoing review of asbestos claims, each year we will reassess the projected liability of unasserted asbestos claims to be filed through 2052, and we will continually reassess the time horizon over which a reasonable estimate of unasserted claims can be projected. We assess the sufficiency of the estimated liability for pending and future claims on an ongoing basis by evaluating actual experience regarding claims filed, settled and dismissed, and amounts paid in settlements. In addition to claims and settlement experience, we consider additional quantitative and qualitative factors such as changes in legislation, the legal environment and the Company's defense strategy. In connection with our ongoing review of asbestos-related claims, we have also reviewed the amount of potential insurance coverage for such claims, taking into account the remaining limits of such coverage, the number and amount of claims on our insurance from co-insured parties, ongoing litigation against the Company’s insurers, potential remaining recoveries from insolvent insurers, the impact of previous insurance settlements and coverage available from solvent insurers not party to the coverage litigation. Continuously, we review ongoing insurance coverage available for a significant amount of the potential future asbestos-related claims and in the future could secure additional insurance coverage as deemed necessary. The study from the Company's actuary, based on d ata as of August 31, 2022, provided for a range of possible future liability from approximate ly $81.8 million to $127.3 million. The Co mpany does not believe any amount within the range of potential outcomes represents a better estimate than another given the many factors and assumptions inherent in the projections and therefore the Company has recorded the liability at the actuarial central estimate of approximately $98.7 million as of December 31, 2022. In addition, the Company has recorded estimated insurance receivables of approxi mately $42.5 million as of December 31, 2022. The amounts recorded for the asbestos-related liability and the related insurance receivables are based on facts known at the time and a number of assumptions. However, projecting future events, such as the number of new claims to be filed each year, the length of time it takes to defend, resolve, or otherwise dispose of such claims, coverage issues among insurers and the continuing solvency of various insurance companies, as well as the numerous uncertainties surrounding asbestos litigation in the United States, could cause the actual liability and insurance recoveries for us to be higher or lower than those projected or recorded. 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 year. Changes recorded in the estimated liability and estimated insurance recovery based on projections of asbestos litigation and corresponding insurance coverage, result in the recognition of additional expense or income. For a discussion pertaining to the activity related to asbestos claims refer to Note 15. 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 prec eding 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 30 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. Right-of-use ("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. In determining the discount rate used to measure the right-of-use asset and lease liability, we utilize the Company’s incremental borrowing rate and consider the term of the lease, as well as the geographic location of the leased asset. 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, 2022 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. 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, typi cally three three 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 fr om four 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 begins 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 three 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. Accounting Standards Codification ("ASC") 350 allows an optional qualitative assessment, prior to a quantitative assessment test, to determine whether it is more likely than not that the fair value of a reporting unit exceeds its carrying amount. We generally do not attempt a qualitative assessment and proceed directly to the quantitative test. If the carrying value of a reporting unit exceeds its fair value, the goodwill of that reporting unit is impaired and an impairment loss is recorded equal to the excess of the carrying value over its fair 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 2022, 2021 or 2020. The pump reporting unit is a component of FPD reporting segment and is primarily focused on highly engineered custom and pre-configured pump products and systems. As of December 31, 2022 our pump reporting unit had approximately $277 million of goodwill and an estimated fair value that exceeded its carrying value by approximately 65% as compared to estimated fair value that exceeded its carrying value by approximately 82% and 46% as of December 31, 2021 and 2020, respectively. The key factors considered in determining the estimated fair value of our reporting units included the annual operating plan and forecasted operating results, successful execution of our current continuous improvement and identified strategic initiatives, a constant cost of capital, continued stabilization and mid to long-term improvement of the macro-economic conditions of the oil and gas market, and a relatively stable global gross domestic product. Although we have concluded that there is no impairment on the goodwill associated with our pump reporting unit as of December 31, 2022, we will continue to closely monitor its performance and related market conditions for future indicators of potential impairment and reassess accordingly. We also considered our market capitalization in our evaluation of the fair value of our goodwill. Our market capitalization as of December 31, 2022 was comparable with 2021 and did not indicate a potential impairment of our goodwill as of December 31, 2022. 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 2022, 2021 or 2020. 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 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2022 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION The majority of our revenues relate to customer orders that typically contain a single commitment of goods or services which have lead times under a year. Longer lead time, more complex contracts with our customers typically have multiple commitments of goods and services, including any combination of designing, developing, manufacturing, modifying, installing and commissioning of flow management equipment and providing services and parts related to the performance of such products. Control transfers over time when the customer is able to direct the use of and obtain substantially all of the benefits of our work as we perform. Service-related revenues do not typically represent a significant portion contracts with our customers and do not meet the thresholds requiring separate disclosure. Our primary method for recognizing revenue over time is the percentage of completion ("POC") method. Revenue from products and services transferred to customers over time accounted for approximately 13%, 15% and 22% of total revenue for the years ended December 31, 2022, 2021 and 2020, respectively. If control does not transfer over time, then control transfers at a point in time. We recognize revenue at a point in time at the level of each performance obligation based on the evaluation of certain indicators of control transfer, such as title transfer, risk of loss transfer, customer acceptance and physical possession. Revenue from products and services transferred to customers at a point in time accounted for approximately 87%, 85% and 78% of total revenue for the years ended December 31, 2022, 2021 and 2020, respectively. Disaggregated Revenue We conduct our operations through two business segments based on the type of product and how we manage the business: • FPD designs and manufactures custom, highly-engineered pumps, pre-configured industrial pumps, pump systems, mechanical seals, auxiliary systems and replacement parts and related services; and • FCD designs, manufactures and distributes a broad portfolio of engineered-to-order and configured-to-order isolation valves, control valves, valve automation products and related equipment. Our 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, 2022 (Amounts in thousands) FPD FCD Total Original Equipment $ 881,061 $ 825,508 $ 1,706,569 Aftermarket 1,636,939 271,612 1,908,551 $ 2,518,000 $ 1,097,120 $ 3,615,120 December 31, 2021 (Amounts in thousands) FPD FCD Total Original Equipment $ 899,519 $ 804,744 $ 1,704,263 Aftermarket 1,568,579 268,218 1,836,797 $ 2,468,098 $ 1,072,962 $ 3,541,060 December 31, 2020 (Amounts in thousands) FPD FCD Total Original Equipment $ 1,091,906 $ 808,585 $ 1,900,491 Aftermarket 1,581,799 245,844 1,827,643 $ 2,673,705 $ 1,054,429 $ 3,728,134 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, 2022 (Amounts in thousands) FPD FCD Total North America(1) $ 1,060,393 $ 472,467 $ 1,532,860 Latin America(1) 222,878 23,575 246,453 Middle East and Africa 372,148 101,017 473,165 Asia Pacific 389,366 305,193 694,559 Europe 473,215 194,868 668,083 $ 2,518,000 $ 1,097,120 $ 3,615,120 December 31, 2021 (Amounts in thousands) FPD FCD Total North America(1) $ 955,283 $ 389,766 $ 1,345,049 Latin America(1) 211,150 30,554 241,704 Middle East and Africa 311,161 107,533 418,694 Asia Pacific 482,596 333,513 816,109 Europe 507,908 211,596 719,504 $ 2,468,098 $ 1,072,962 $ 3,541,060 December 31, 2020 (Amounts in thousands) FPD FCD Total North America(1) $ 1,039,285 $ 429,572 $ 1,468,857 Latin America(1) 191,517 26,393 217,910 Middle East and Africa 359,403 110,539 469,942 Asia Pacific 537,792 270,238 808,030 Europe 545,708 217,687 763,395 $ 2,673,705 $ 1,054,429 $ 3,728,134 _____________________________________ (1) North America represents United States and Canada; Latin America includes Mexico. On December 31, 2022, 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 $652 million. We estimate recognition of approximately $451 million of this amount as revenue in 2023 and an additional $201 million in 2024 and thereafter. Contract Balances We receive payment from customers based on a contractual billing schedule and specific performance requirements as established in our contracts. We record billings as accounts receivable when an unconditional right to consideration exists. A contract asset represents revenue recognized in advance of our right to 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, 2022 and 2021: ( Amounts in thousands) Contract Assets, net (Current) Long-term Contract Assets, net(1) Contract Liabilities (Current) Long-term Contract Liabilities(2) Balance — January 1, 2021 $ 277,734 $ 1,139 $ 194,227 $ 822 Revenue recognized that was included in contract liabilities at the beginning of the period — — (153,221) — Increase due to revenue recognized in the period in excess of billings 784,934 — — — Increase due to billings arising during the period in excess of revenue recognized — — 165,990 — Amounts transferred from contract assets to receivables (848,031) (2,329) — — Currency effects and other, net (19,039) 1,616 (4,031) (358) Balance — December 31, 2021 $ 195,598 $ 426 $ 202,965 $ 464 Revenue recognized that was included in contract liabilities at the beginning of the period — — (143,736) — Increase due to revenue recognized in the period in excess of billings 660,039 — — — Increase due to billings arising during the period in excess of revenue recognized — — 203,711 — Amounts transferred from contract assets to receivables (603,422) (1,338) — — Currency effects and other, net (18,758) 1,209 (5,977) 595 Balance — December 31, 2022 $ 233,457 $ 297 $ 256,963 $ 1,059 _____________________________________ (1) Included in other assets, net. |
Allowance for Expected Credit L
Allowance for Expected Credit Losses | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
Allowance for Expected Credit Losses | ALLOWANCE FOR EXPECTED CREDIT LOSSES The allowance for credit losses is an estimate of the credit losses expected over the life of our financial assets and instruments. We assess and measure expected credit losses on a collective basis when similar risk characteristics exist, including market, geography, credit risk and remaining duration. Financial assets and instruments that do not share risk characteristics are evaluated on an individual basis. Our estimate of the allowance balance is assessed and quantified using internal and external valuation information relating to past events, current conditions and reasonable and supportable forecasts over the contractual terms of an asset. Our primary exposure to expected credit losses is through our accounts receivable and contract assets. For these financial assets, we record an allowance for expected credit losses that, when deducted from the gross asset balance, presents the net amount expected to be collected. Primarily, our experience of historical credit losses provides the basis for our estimation of the allowance. We estimate the allowance based on an aging schedule and according to historical losses as determined from our history of billings and collections. Additionally, we adjust the allowance for factors that are specific to our customers’ credit risk such as financial difficulties, liquidity issues, insolvency, and country and geopolitical risks. We also consider both the current and forecasted macroeconomic conditions as of the reporting date. As identified and needed, we adjust the allowance and recognize adjustments in the income statement each period. Accounts receivable are written off against the allowance in the period when the receivable is deemed to be uncollectible and further collection efforts have ceased. Subsequent recoveries of previously written off amounts are reflected as a reduction to credit impairment losses in the consolidated statements of income. Contract assets represent a conditional right to consideration for satisfied performance obligations that become a receivable when the conditions are satisfied. Generally, contract assets are recorded when contractual billing schedules differ from revenue recognition based on timing and are managed through the revenue recognition process. Based on our historical credit loss experience, the current expected credit loss for contract assets is estimated to be approximately 1% of the asset balance. The following table presents the changes in the allowance for expected credit losses for our accounts receivable and short-term contract assets as of December 31, 2022, 2021 and 2020: (Amounts in thousands) Accounts receivable Short-term contract assets Beginning balance, January 1, 2022 $ 74,336 $ 2,393 Charges to cost and expenses, net of recoveries 12,530 2,785 Write-offs (3,188) — Currency effects and other, net (616) 641 Ending balance, December 31 , 2022 $ 83,062 $ 5,819 Beginning balance, January 1, 2021 $ 75,176 $ 3,205 Charges to cost and expenses, net of recoveries 3,934 — Write-offs (2,015) — Currency effects and other, net (2,759) (812) Ending balance, December 31 , 2021 $ 74,336 $ 2,393 Beginning balance, January 1, 2020 $ 53,412 $ 206 Adoption of ASU 2016-13 6,970 2,779 Charges to cost and expenses, net of recoveries 9,326 — Currency effects and other, net 5,468 220 Ending balance, December 31 , 2020 $ 75,176 $ 3,205 Our allowance on long-term receivables, included in other assets, net, represent receivables with collection periods longer than 12 months and the balance primarily consists of reserved receivables associated with the national oil company in Venezuela. The following table presents the changes in the allowance for long-term receivables as of December 31, 2022, 2020 and 2020: (Amounts in thousands) 2022 2021 2020 Beginning balance, January 1, $ 67,696 $ 67,842 $ 68,555 Adoption of ASU 2016-13 — — (679) Currency effects and other, net (1,319) (146) (34) Ending balance, December 31, $ 66,377 $ 67,696 $ 67,842 We also have exposure to credit losses from off-balance sheet exposures, such as financial guarantees and standby letters of credit, where we believe the risk of loss is immaterial to our financial statements as of December 31, 2022 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | LEASESWe had $2.0 million and $15.8 million of legally binding minimum lease payments for operating leases signed but not yet commenced as of December 31, 2022 and 2021. We did not have material subleases, leases that imposed significant restrictions or covenants, material related party leases or sale-leaseback arrangements. In conjunction with our close process for the third quarter of 2022, the Company identified an accounting error related to certain operating real estate leases that have escalating rent payments which were not correctly recorded on a straight-line basis in the amount of $6.4 million. Approximately $5.8 million of the error impacted the Company’s consolidated statements of income prior to adoption of ASU No. 2016-02, Leases (Topic 842) in 2019 and the remaining immaterial amount impacted each period subsequent to adoption. To correct the cumulative impact of the error the Company recorded an adjustment of $6.4 million of incremental operating lease expense in the third quarter of 2022 ($5.5 million classified as SG&A and $0.9 million classified as COS), with the offsetting adjustment to reduce operating lease right-of-use assets, net on our condensed consolidated balance sheet for the period ended September 30, 2022. There was no impact to our statements of cash flows as a result of the correction of the error. Other information related to our leases is as follows: December 31, 2022 2021 (Amounts in thousands) Finance Leases: ROU assets recorded under finance leases $ 33,427 $ 28,416 Accumulated depreciation associated with finance leases (15,851) (12,227) Total finance leases ROU assets, net(1) $ 17,576 $ 16,189 Total finance leases liabilities(2) $ 17,939 $ 16,477 The costs components of operating and finance leases are as follows: December 31, 2022 2021 2020 (Amounts in thousands) Operating Lease Costs: Fixed lease expense(3) $ 59,782 $ 57,482 $ 57,050 Variable lease expense(3) 7,412 9,331 7,299 Total operating lease expense $ 67,194 $ 66,813 $ 64,349 Finance Lease Costs: Depreciation of finance lease ROU assets(3) $ 5,984 $ 5,374 $ 5,392 Interest on lease liabilities(4) 604 617 646 Total finance lease expense $ 6,588 $ 5,991 $ 6,038 _____________________ (1) Included in property, plant and equipment, net (2) Included in debt due within one year long-term debt due after one year (3) Included in cost of sales and selling, general and administrative expense, accordingly (4) Included in interest expense Supplemental cash flows information related to our leases is as follows: December 31, (Amounts in thousands, except lease term and discount rate) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases(1) $ 57,712 $ 61,240 $ 66,478 Financing cash flows from finance leases(2) 6,039 5,285 4,704 ROU assets obtained in exchange for lease obligations: Operating leases $ 26,581 $ 35,542 $ 62,425 Finance leases 7,906 4,177 13,124 Weighted average remaining lease term (in years) Operating leases 8 years 8 years 9 years Finance leases 6 years 6 years 7 years Weighted average discount rate (percent) Operating leases 4.0 % 3.9 % 4.2 % Finance leases 3.9 % 3.4 % 3.5 % _____________________ (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, 2022, were as follows: Year ending December 31, Operating Finance Leases (Amounts in thousands) 2023 38,724 5,767 2024 33,466 4,288 2025 26,466 3,092 2026 21,565 1,549 2027 18,895 694 Thereafter 81,007 4,955 Total future minimum lease payments $ 220,123 $ 20,345 Less: Imputed interest (32,399) (2,406) Total $ 187,724 $ 17,939 Other current liabilities $ 32,528 $ — Operating lease liabilities 155,196 — Debt due within one year — 5,545 Long-term debt due after one year — 12,394 Total $ 187,724 $ 17,939 |
Leases | LEASESWe had $2.0 million and $15.8 million of legally binding minimum lease payments for operating leases signed but not yet commenced as of December 31, 2022 and 2021. We did not have material subleases, leases that imposed significant restrictions or covenants, material related party leases or sale-leaseback arrangements. In conjunction with our close process for the third quarter of 2022, the Company identified an accounting error related to certain operating real estate leases that have escalating rent payments which were not correctly recorded on a straight-line basis in the amount of $6.4 million. Approximately $5.8 million of the error impacted the Company’s consolidated statements of income prior to adoption of ASU No. 2016-02, Leases (Topic 842) in 2019 and the remaining immaterial amount impacted each period subsequent to adoption. To correct the cumulative impact of the error the Company recorded an adjustment of $6.4 million of incremental operating lease expense in the third quarter of 2022 ($5.5 million classified as SG&A and $0.9 million classified as COS), with the offsetting adjustment to reduce operating lease right-of-use assets, net on our condensed consolidated balance sheet for the period ended September 30, 2022. There was no impact to our statements of cash flows as a result of the correction of the error. Other information related to our leases is as follows: December 31, 2022 2021 (Amounts in thousands) Finance Leases: ROU assets recorded under finance leases $ 33,427 $ 28,416 Accumulated depreciation associated with finance leases (15,851) (12,227) Total finance leases ROU assets, net(1) $ 17,576 $ 16,189 Total finance leases liabilities(2) $ 17,939 $ 16,477 The costs components of operating and finance leases are as follows: December 31, 2022 2021 2020 (Amounts in thousands) Operating Lease Costs: Fixed lease expense(3) $ 59,782 $ 57,482 $ 57,050 Variable lease expense(3) 7,412 9,331 7,299 Total operating lease expense $ 67,194 $ 66,813 $ 64,349 Finance Lease Costs: Depreciation of finance lease ROU assets(3) $ 5,984 $ 5,374 $ 5,392 Interest on lease liabilities(4) 604 617 646 Total finance lease expense $ 6,588 $ 5,991 $ 6,038 _____________________ (1) Included in property, plant and equipment, net (2) Included in debt due within one year long-term debt due after one year (3) Included in cost of sales and selling, general and administrative expense, accordingly (4) Included in interest expense Supplemental cash flows information related to our leases is as follows: December 31, (Amounts in thousands, except lease term and discount rate) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases(1) $ 57,712 $ 61,240 $ 66,478 Financing cash flows from finance leases(2) 6,039 5,285 4,704 ROU assets obtained in exchange for lease obligations: Operating leases $ 26,581 $ 35,542 $ 62,425 Finance leases 7,906 4,177 13,124 Weighted average remaining lease term (in years) Operating leases 8 years 8 years 9 years Finance leases 6 years 6 years 7 years Weighted average discount rate (percent) Operating leases 4.0 % 3.9 % 4.2 % Finance leases 3.9 % 3.4 % 3.5 % _____________________ (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, 2022, were as follows: Year ending December 31, Operating Finance Leases (Amounts in thousands) 2023 38,724 5,767 2024 33,466 4,288 2025 26,466 3,092 2026 21,565 1,549 2027 18,895 694 Thereafter 81,007 4,955 Total future minimum lease payments $ 220,123 $ 20,345 Less: Imputed interest (32,399) (2,406) Total $ 187,724 $ 17,939 Other current liabilities $ 32,528 $ — Operating lease liabilities 155,196 — Debt due within one year — 5,545 Long-term debt due after one year — 12,394 Total $ 187,724 $ 17,939 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021 are as follows: FPD FCD Total (Amounts in thousands) Balance as of December 31, 2020 $ 805,055 $ 419,831 $ 1,224,886 Currency translation and other (17,842) (10,565) (28,407) Balance as of December 31, 2021 $ 787,213 $ 409,266 $ 1,196,479 Currency translation and other (14,940) (13,415) (28,355) Balance as of December 31, 2022 $ 772,273 $ 395,851 $ 1,168,124 The following table provides information about our intangible assets for the years ended December 31, 2022 and 2021: December 31, 2022 December 31, 2021 Useful Ending Accumulated Ending Accumulated (Amounts in thousands, except years) Finite-lived intangible assets: Engineering drawings(1) 10-22 $ 88,830 $ (88,256) $ 89,699 $ (86,275) Existing customer relationships(2) 5-10 79,472 (70,015) 82,420 (67,279) Patents 9-16 25,639 (25,639) 26,339 (26,339) Other 4-40 92,798 (49,481) 93,849 (46,436) $ 286,739 $ (233,391) $ 292,307 $ (226,329) Indefinite-lived intangible assets(3) $ 82,640 $ (1,485) $ 88,069 $ (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 2022 and an estimate of future amortization based upon the finite-lived intangible assets owned at December 31, 2022: Amortization (Amounts in thousands) Actual for year ended December 31, 2022 $ 11,436 Estimated for year ended December 31, 2023 9,715 Estimated for year ended December 31, 2024 5,616 Estimated for year ended December 31, 2025 2,174 Estimated for year ended December 31, 2026 2,038 Estimated for year ended December 31, 2027 2,038 Thereafter 31,767 Amortization expense for finite-lived intangible assets was $13.4 million in 2021 and $13.6 million in 2020. |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | INVENTORIES Inventories, net consisted of the following: December 31, 2022 2021 2020 (Amounts in thousands) Raw materials $ 360,039 $ 318,348 321,600 Work in process 295,678 242,143 210,174 Finished goods 245,494 213,096 221,532 Less: Excess and obsolete reserve (98,013) (95,300) (86,078) Inventories, net $ 803,198 $ 678,287 $ 667,228 During 2022, 2021 and 2020, we recognized expenses of $15.4 million, $15.6 million and $14.9 million, respectively, for excess and obsolete inventory. These expenses are included in COS in our consolidated statements of income. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans | STOCK-BASED COMPENSATION PLANS Effective January 1, 2020, our shareholders approved the Flowserve Corporation 2020 Long-Term Incentive Plan (“2020 Plan”). The 2020 Plan replaces and supersedes the Flowserve Corporation Equity and Incentive Compensation Plan ("2010 Plan") in its entirety. The 2020 Plan authorizes the issuance of 12,500,000 shares of our common stock in the form of restricted shares, restricted share units and performance-based units (collectively referred to as "Restricted Shares"), incentive stock options, non-statutory stock options, stock appreciation rights and bonus stock, in addition to any shares available for issuance or subject to forfeiture under the expired 2010 Plan. Of the shares of common stock authorized under the 2020 Plan and remaining shares under the 2010 Plan, 9,756,068 were available for issuance as of December 31, 2022. Restricted Shares primarily vest over a three year period. Restricted Shares granted to employees who retire and have achieved at least 55 years of age and 10 years of service continue to vest over the original vesting period ("55/10 Provision"). 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, 2022, 114,943 stock options were outstanding and exercisable, with a grant date fair value of $2.0 million recognized over three years and a weighted average exercise price of $48.63 . As of December 31, 2020, compensation associated with these stock options was fully earned. Using the Black-Scholes option pricing model to estimate the fair value of each option award, as of December 31, 2022 the total fair value of stock options vested wa s $2.0 million . No stock options were exercised during the years ended December 31, 2022, 2021 or 2020 . No stock options were granted, canceled or vested during years ended December 31, 2022, 2021 or 2020. T he weighted average remaining contractual life of options outstanding at December 31, 2022, 2021 and 2020 was 4.3 years, 5.3 years and 6.3 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 Awards of Restricted Shares are valued at the closing market price of our common stock on the date of grant. The unearned compensation i s 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, 2022 and 2021, we had $18.0 million and $24.2 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, 2022, 2021 and 2020 was $23.5 million , $25.2 million and $26.4 million, respectively. We recorded stock-based compensation for Restricted Shares as follows: Year Ended December 31, 2022 2021 2020 (Amounts in millions) Stock-based compensation expense $ 25.5 $ 29.5 $ 27.3 Related income tax benefit (5.8) (6.7) (6.2) Net stock-based compensation expense $ 19.7 $ 22.8 $ 21.1 The following table summarizes information regarding Restricted Shares: Year Ended December 31, 2022 Shares Weighted Average Number of unvested Restricted Shares: Outstanding — beginning of year 1,671,011 $ 43.06 Granted 982,654 32.91 Vested (549,129) 42.85 Canceled (406,757) 43.41 Outstanding — end of year 1,697,779 $ 37.17 Unvested Restricted Sha res outstanding as of December 31, 2022, includes approximately 485,000 units with performance-based vesting provisions issuable in common stock and vest upon the achievement of predefined performance metrics. Targets for outstanding performance awards are based on our average return on invested capital, total s hareholder return ("TSR") or free cash flow as a percent of net income over a three-year period. Performance units issued in 2022 and 2021 include a secondary measure, relative total shareholder return, which can increase or decrease the number of vesting units by 15% depending on the Company's performance versus peers. Performance units issued in 2020 have a vesting percentage between 0% and 200%, while the 2021 and 2022 perfo rmance units have a vesting percentage up to 230%. Compensation expense is recognized ratably over a cliff-vesting period of 36 months, based on the fair value of our common stock on the date of grant, adjusted for actual forfeitures. During the performance period, earned and unearned compensation expense is adjusted based on changes in the expected achievement of the performance targets for all performance-based units granted except for the TSR-based units. Vesting provisions range fro m 0 t o approximately 1,067,000 shares based on performance targets. As of December 31, 2022, we estimate vesting of approximately 247,000 shares based on expected achievement of performance targets. |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | 12 Months Ended |
Dec. 31, 2022 | |
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 $459.2 million and $425.2 million at December 31, 2022 and 2021, respectively. At December 31, 2022, the length of foreign exchange contracts currently in plac e ranged from 3 days to 26 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, 2022 2021 (Amounts in thousands) Current derivative assets $ 2,207 $ 740 Noncurrent derivative assets 66 2 Current derivative liabilities 4,422 2,924 Noncurrent derivative liabilities 63 82 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, 2022 2021 2020 (Amounts in thousands) Gains (losses) recognized in income $ (6,173) $ 3,295 $ (10,294) Gains and losses recognized in our consolidated statements of income for foreign exchange contracts are classified as other income (expense), net. As a means of managing the volatility of foreign currency exposure with the Euro/U.S. dollar exchange rate, we entered into cross-currency swap agreements ("Swaps") as a hedge of our Euro investment in certain of our international subsidiaries. Accordingly, on April 14, 2021 and March 9, 2021, we entered into Swaps, with both having termination dates of October 1, 2030 and the March 9, 2021 cross currency swap having an early termination date of March 11, 2025 . Also, d uring the third quarter of 2020 we entered into a cross currency swap agreement with a termination date of October 1, 2030 and an early termination date of September 22, 2025. The swap agreements were designated as net investment hedges and classified as Level II under the fair value hierarchy. On December 20, 2022 all outstanding swap agreements were early terminated resulting in net cash proceeds received of $66.0 million. Prior to the early termination the cross-currency swaps had a combined notional value of €423.2 million and a fair value of $68.2 million. The fair values of our cross-currency swaps are summarized below: Year Ended December 31, 2022 2021 (Amounts in thousands) Other assets, net $ — $ 23,129 We excluded the interest accruals on the swaps from the assessment of hedge effectiveness and recognize the interest accruals in earnings within interest expense. For each reporting period, the change in the fair value of the swap attributable to changes in the spot rate and differences between the change in the fair value of the excluded components and the amounts recognized in earnings under the swap accrual process were reported in accumulated other comprehensive loss ("AOCL") on our consolidated balance sheets. For the period ended December 31, 2022, an interest accrual of $8.5 million was recogniz ed within interest expense in our consolidated statements of income. The cumulative net investment hedge (gain) loss, net of deferred taxes, under cross-currency swaps recorded in AOCL on our consolidated balance sheets are summarized below: Year Ended December 31, 2022 2021 2020 (Amounts in thousands) (Gain) loss-included component (1) $ (37,135) $ (15,578) $ 6,067 (Gain) loss-excluded component (2) (11,875) (2,111) 7,769 (Gain) loss recognized in AOCL $ (49,010) $ (17,689) $ 13,836 _____________________________________________ (1) Change in the fair value of the swaps attributable to changes in spot rates. (2) Change in the fair value of the swaps due to changes other than those attributable to spot rates. In March 2015, we designated €255.7 million of our 1.25% EUR Senior Notes ("2022 Euro Senior Notes") as a net investment hedge of our Euro investment in certain of our international subsidiaries. On September 22, 2020, we increased the designated hedged value on the 2022 Euro Senior Notes to €336.3 million, which reflected the remaining balance of the 2022 Euro Senior Notes. For each reporting period, the change in the carrying value due to the remeasurement of the effective portion is reported in AOCL on our consolidated balance sheets and the remaining change in the carrying value of the ineffective portion, if any, is recognized in other income (expense), net in our consolidated statements of income. As a result of the redemption of our 2022 Euro Senior Notes in the first quarter of 2021 we dedesignated the hedged value of our net investment hedge. Prior to the dedesignation, the cumulative impact recorded in AOCL on our consolidated balance sheets from the change in carrying value due to the remeasurement of the effective portion of the net investment hedge are summarized below: Year Ended December 31, 2022 2021 2020 (Amounts in thousands) Loss recorded in AOCL $ — $ (29,554) $ (34,973) Prior to the dedesignation of the net investment hedge, we used the spot method to measure the effectiveness of both net investment hedges and evaluate the ef fectiveness on a prospective basis at the beginning of each quarter. We did not record any ineffectiveness for the periods ended Dec ember 31, 2021 and 2020. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS 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. Recurring fair value measurements are limited to investments in derivative instruments. The fair value measurements of our derivative instruments are determined using models that maximize the use of the observable market inputs including interest rate curves and both forward and spot prices for currencies, and are classified as Level II under the fair value hierarchy. The fair values of our derivatives are included above in Note 8. The carrying value of our financial instruments as reflected in our consolidated balance sheets approximates fair value, with the exception of our long-term debt. The estimated fair value of our long-term debt, excluding the Senior Notes, approximates the carrying value and is classified as Level II under the fair value hierarchy. The carrying value of our debt is included in Note 12. The estimated fair value of our Senior Notes at December 31, 2022 was $790.5 million compared to the carrying value of $989.2 million . The estimated fair value of the Senior Notes is based on Level I quoted market rates. Th e 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, 2022 and December 31, 2021. |
Details of Certain Consolidated
Details of Certain Consolidated Balance Sheet Captions | 12 Months Ended |
Dec. 31, 2022 | |
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 sheets captions. Accounts Receivable, net — Accounts receivable, net were: December 31, 2022 2021 (Amounts in thousands) Trade accounts receivables $ 919,045 $ 770,280 Less: allowance for expected credit losses (66,444) (55,264) Other short-term receivables 32,649 43,266 Less: allowance for expected credit losses (16,618) (19,072) Accounts receivable, net $ 868,632 $ 739,210 Property, Plant and Equipment, net — Property, plant and equipment, net were: December 31, 2022 2021 (Amounts in thousands) Land $ 60,669 $ 62,613 Buildings and improvements 425,019 441,627 Machinery, equipment and tooling 750,933 751,944 Software, furniture and fixtures and other 437,280 451,566 Gross property, plant and equipment 1,673,901 1,707,750 Less: accumulated depreciation (1,172,956) (1,191,823) Property, plant and equipment, net $ 500,945 $ 515,927 Accrued Liabilities — Accrued liabilities were: December 31, 2022 2021 (Amounts in thousands) Wages, compensation and other benefits $ 175,898 $ 204,347 Commissions and royalties 18,526 21,911 Warranty costs and late delivery penalties 21,850 23,741 Sales and use tax 29,092 20,782 Income tax 32,968 47,186 Other 149,244 127,125 Accrued liabilities $ 427,578 $ 445,092 "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 lia bilities. Retirement Obligations and Other Liabilities — Retirement obligations and other liabilities were: December 31, 2022 2021 (Amounts in thousands) Pension and postretirement benefits $ 142,204 $ 188,999 Deferred taxes 7,901 9,169 Legal and environmental 90,207 86,561 Uncertain tax positions and other tax liabilities 37,604 37,013 Other 31,613 30,320 Retirement obligations and other liabilities $ 309,529 $ 352,062 "Other" includes derivative liabilities, deferred compensation liabilities, asset retirement obligations, insurance-related liabilities and other items, none of which exceed 5% of retirement obligations and other liabilities. |
Equity Method Investments
Equity Method Investments | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022, we had investments in five joint ventures, one located in each of Chile, India, Saudi Arabia, South Korea and the United Arab Emirates that were accounted for using the equit y method and are immaterial for disclosure purposes. |
Debt and Finance Lease Obligati
Debt and Finance Lease Obligations | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt and Finance Lease Obligations | DEBT AND FINANCE LEASE OBLIGATIONS Debt, including finance lease obligations, consisted of: December 31, 2022 2021 (Amounts in thousands) 3.50% USD Senior Notes due October 1, 2030, net of unamortized discount and debt issuance costs of $5,055 and $5,611 at December 31, 2022 and 2021, respectively 494,945 494,389 2.80% USD Senior Notes due January 15, 2032, net of unamortized discount and debt issuance costs of $5,727 and $6,273 at December 31, 2022 and 2021, respectively 494,273 493,727 Term Loan Facility, interest rate of 5.98% and 1.45%, net of debt issuance costs of $444 and $639 at December 31, 2022 and 2021, respectively 259,556 291,861 Finance lease obligations and other borrowings 24,712 22,851 Debt and finance lease obligations 1,273,486 1,302,828 Less amounts due within one year 49,335 41,058 Total debt due after one year $ 1,224,151 $ 1,261,770 Scheduled maturities of our Senior Notes and other debt, are (amounts in thousands): Term Loan Senior Notes and other debt Total (Amounts in thousands) 2023 $ 39,830 $ 9,335 $ 49,165 2024 59,863 15,377 75,240 2025 59,905 — 59,905 2026 99,958 — 99,958 2027 — — — Thereafter — 989,218 989,218 Total $ 259,556 $ 1,013,930 $ 1,273,486 Senior Notes On March 19, 2021, we redeemed the remaining $400.9 million of our 2022 Euro Senior Notes and r ecorded a loss on early extinguishment of $7.6 million in the first quarter of 2021, which included the impact of a $6.6 million make-whole premium . Senior Credit Facility On September 13, 2021, we amended and restated our credit agreement (the "Amended and Restated Credit Agreement") under our Senior Credit Facility (the "Credit Facility") with Bank of America, N.A. and the other lenders to provide greater flexibility in maintaining adequate liquidity and access to available borrowings. The Amended and Restated Credit Agreement, (i) retained, from the previous credit agreement, the $800.0 million unsecured Revolving Credit Facility (the "Revolving Credit Facility"), which includes a $750.0 million sublimit for the issuance of letters of credit and a $30.0 million sublimit for swing line loans ii) provides for an up to $300 million unsecured Term Loan Facility (the "Term Loan"), (iii) extends the maturity date of the agreement to September 13, 2026, (iv) reduces commitment fees, (v) extends net leverage ratio covenant definition through the maturity of the agreement, and (vi) provides the ability to make certain adjustments to the otherwise applicable commitment fee, interest rate and letter of credit fees based on the Company’s performance against to-be-established key performance indicators with respect to certain of the Company’s environmental, social and governance targets. T he interest rates per annum applicable to the Revolving Credit Facility are unchanged under the Amended and Restated Credit Agreement. The interest rates per annum applicable to the Credit Facility, other than with respect to swing line loans, are LIBOR plus between 1.000% to 1.750%, depending on our debt rating by either Moody’s Investors Service, Inc. ("Moody's") or Standard & Poor’s Financial Services LLC ("S&P"), or, at our option, the Base Rate (as defined in the Amended and Restated Credit Agreement) plus between 0.000% to 0.750% depending on our debt rating by either Moody’s or S&P. At December 31, 2022, the interest rate on the Revolving Credit Facility was LIBOR plus 1.375% in the case of LIBOR loans and the Base Rate plus 0.375% in the case of Base Rate loans. In addition, a commitment fee is payable quarterly in arrears on the daily unused portions of the Credit Facility. The commitment fee will be between 0.080% and 0.250% of unused amounts under the Credit Facility depending on our debt rating by either Moody’s or S&P. The commitment fee was 0.175% (per an num) during the period ended December 31, 2022. Under the terms and conditions of the Amended and Restated Credit Agreement, interest rates per annum applicable to the Term Loan are stated as LIBOR plus between 0.875% to 1.625%, depending on the Company’s debt rating by either Moody’s or S&P, or, at the option of the Company, the Base Rate plus between 0.000% to 0.625% depending on the Company’s debt rating by either Moody’s or S&P. As of December 31, 2022, and December 31, 2021, we had no re volving loans outstanding under the Senior Credit Facility. We had outstanding letters of credit of $71.7 million and $78.3 million at December 31, 2022, and December 31, 2021, respectively. After consideration of the financial covenants under our Senior Credit Facility and outstanding letters of credit, as of December 31, 2022, the amount available for borrowings under our Senior Credit Facility was limited to $293.9 million . As of December 31, 2021, the amount available for borrowings under our Revolving Credit facility was $614.2 million. We have scheduled repayments of $10.0 million due in each of the subsequent four quarters through December 31, 2023. |
Pension and Postretirement Bene
Pension and Postretirement Benefits | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 2020 Weighted average assumptions used to determine Benefit Obligations: Discount rate 5.73 % 3.00 % 2.62 % Rate of increase in compensation levels 3.50 3.50 3.63 Weighted average assumptions used to determine net pension expense: Long-term rate of return on assets 5.75 % 6.00 % 6.00 % Discount rate 3.00 2.62 3.41 Rate of increase in compensation levels 3.50 3.50 3.56 Weighted-average interest crediting rates 3.79 % 3.79 % 3.79 % At December 31, 2022 as compared with December 31, 2021, we increased our discount rate from 3.00% to 5.73% based on an analysis of publicly-traded investment grade U.S. corporate bonds, which had a higher yield due to current market conditions. In determining 2022 expense, the expected rate of return on U.S. plan assets decreased to 5.75%, 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-2021 improvement scale published in October 2021. 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 the Proxy SSA Long Term Improvement Rates, 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, 2022 2021 2020 (Amounts in thousands) Service cost $ 24,680 $ 25,162 $ 25,893 Interest cost 13,157 11,952 15,100 Expected return on plan assets (25,345) (25,377) (25,794) Settlement (gain) loss — — 128 Amortization of unrecognized prior service cost 175 188 184 Amortization of unrecognized net loss 3,461 7,725 6,977 U.S. net pension expense $ 16,128 $ 19,650 $ 22,488 The following summarizes the net pension (liability) asset for U.S. plans: December 31, 2022 2021 (Amounts in thousands) Plan assets, at fair value $ 365,044 $ 488,281 Benefit Obligation (382,959) (471,825) Funded status $ (17,915) $ 16,456 The following summarizes amounts recognized in the balance sheet for U.S. plans: December 31, 2022 2021 (Amounts in thousands) Noncurrent assets $ — $ 22,398 Current liabilities (232) (170) Noncurrent liabilities (17,683) (5,772) Funded status $ (17,915) $ 16,456 The following is a summary of the changes in the U.S. defined benefit plans’ pension obligations: December 31, 2022 2021 (Amounts in thousands) Balance — January 1 $ 471,825 $ 487,418 Service cost 24,680 25,162 Interest cost 13,157 11,952 Plan amendments and settlements 179 — Actuarial (gain) loss (1) (87,791) (11,208) Benefits paid (39,091) (41,499) Balance — December 31 $ 382,959 $ 471,825 Accumulated benefit obligations at December 31 $ 382,488 $ 471,024 _______________________________________ (1) The actuarial gains in 2022 and 2021 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): 2023 $ 40.6 2024 39.1 2025 40.0 2026 40.4 2027 40.0 2028-2032 194.1 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, 2022 2021 (Amounts in thousands) Balance — January 1 $ (30,014) $ (49,321) Amortization of net loss 2,647 5,907 Amortization of prior service cost 134 144 Net gain (loss) arising during the year (17,085) 13,256 Prior service cost arising during the year (137) — Balance — December 31 $ (44,455) $ (30,014) Amounts recorded in accumulated other comprehensive loss consist of: December 31, 2022 2021 (Amounts in thousands) Unrecognized net loss $ (43,725) $ (29,344) Unrecognized prior service cost (730) (670) Accumulated other comprehensive loss, net of tax $ (44,455) $ (30,014) The following is a reconciliation of the U.S. defined benefit pension plans’ assets: December 31, 2022 2021 (Amounts in thousands) Balance — January 1 $ 488,281 $ 477,680 Gain (loss) on plan assets (84,785) 31,501 Company contributions 639 20,599 Benefits paid (39,091) (41,499) Balance — December 31 $ 365,044 $ 488,281 We contribu ted $0.6 million and $20.6 million to the U.S. defined benefit pension plans during 2022 and 2021, respectively. All U.S. defined benefit plan assets are held by the qualified plan. The asset allocations for the qualified plan at the end of 2022 and 2021 by asset category, are as follows: Target Allocation Percentage of Actual Plan Assets at December 31, Asset category 2022 2021 2022 2021 Cash and cash equivalents 1 % 1 % 1 % 1 % Cash and cash equivalents 1 % 1 % 1 % 1 % Global Equity 20 % 27 % 21 % 26 % Global Real Assets 14 % 15 % 13 % 16 % Equity securities 34 % 42 % 34 % 42 % Diversified Credit 14 % 15 % 18 % 15 % Liability-Driven Investment 51 % 42 % 47 % 42 % Fixed income 65 % 57 % 65 % 57 % 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 34% of plan assets in equity securities and 65% in fixed income securities. Within each investment category, assets are allocated to various investment strategies. Professional money management firms manage our assets, and we engag e 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 resp onsible 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, 2022 At December 31, 2021 Hierarchical Levels Hierarchical Levels Total I II III Total I II III (Amounts in thousands) (Amounts in thousands) Cash and cash equivalents $ 4,072 $ 4,072 $ — $ — $ 6,192 $ 6,192 $ — $ — Commingled Funds: Equity securities Global Equity(a) 77,217 — 77,217 — 128,269 — 128,269 — Global Real Assets(b) 46,476 — 46,476 — 79,089 — 79,089 — Fixed income securities Diversified Credit(c) 64,877 — 64,877 — 71,100 — 71,100 — Liability-Driven Investment(d) 172,402 — 172,402 — 203,631 — 203,631 — $ 365,044 $ 4,072 $ 360,972 $ — $ 488,281 $ 6,192 $ 482,089 $ — _______________________________________ (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 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, Switzerland and the U.K. The assets of the plans in the U.K. (two plans), The Netherlands and Canada represen t 90% of th e total non-U.S. plan assets ("non-U.S. assets"). Details of other countries’ plan assets have not been provided due to immater iality. The following are assumptions related to the non-U.S. defined benefit pension plans: Year Ended December 31, 2022 2021 2020 Weighted average assumptions used to determine Benefit Obligations: Discount rate 4.46 % 1.71 % 1.23 % Rate of increase in compensation levels 3.61 3.18 3.11 Weighted average assumptions used to determine net pension expense: Long-term rate of return on assets 2.43 % 2.37 % 2.37 % Discount rate 1.71 1.23 1.61 Rate of increase in compensation levels 3.18 3.11 3.12 Weighted-average interest crediting rates 1.49 % 1.41 % 1.00 % At December 31, 2022, as compared with December 31, 2021, we increased our average discount rate for non-U.S. plans from 1.71% to 4.46% based on analysis of bonds and other publicly-traded instruments, by country, which had higher yields due to market conditions. To determine 2022 pension expense, our average expected rate of return on plan assets increased to 2.43% 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, 2022 2021 2020 (Amounts in thousands) Service cost $ 5,984 $ 7,336 $ 7,052 Interest cost 6,506 5,544 6,572 Expected return on plan assets (5,883) (6,204) (5,018) Amortization of unrecognized net loss 2,729 4,509 4,315 Amortization of unrecognized prior service cost 293 300 262 Settlement loss and other (75) 640 708 Non-U.S. net pension expense $ 9,554 $ 12,125 $ 13,891 The following summarizes the net pension liability for non-U.S. plans: December 31, 2022 2021 (Amounts in thousands) Plan assets, at fair value $ 172,276 $ 275,941 Benefit Obligation (268,364) (420,809) Funded status - Underfunded $ (96,088) $ (144,868) The following summarizes amounts recognized in the balance sheet for non-U.S. plans: December 31, 2022 2021 (Amounts in thousands) Noncurrent assets $ 15,305 $ 22,655 Current liabilities (6,877) (7,205) Noncurrent liabilities (104,516) (160,318) Funded status $ (96,088) $ (144,868) The following is a reconciliation of the non-U.S. plans’ defined benefit pension obligations: December 31, 2022 2021 (Amounts in thousands) Balance — January 1 $ 420,809 $ 469,998 Service cost 5,984 7,336 Interest cost 6,506 5,544 Employee contributions 71 74 Settlements and other (7,944) (3,140) Actuarial gains(1) (108,546) (24,493) Net benefits and expenses paid (15,797) (17,316) Currency translation impact(2) (32,719) (17,194) Balance — December 31 $ 268,364 $ 420,809 Accumulated benefit obligations at December 31 $ 253,428 $ 399,757 _______________________________________ (1) Actuarial gains primarily reflects the impact of changes in the discount rates for all plans. (2) In 2022 and 2021, the currency translation gains reflects the strengthening of the U.S. dollar against the Euro and the 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): 2023 $ 15.1 2024 15.8 2025 16.5 2026 17.1 2027 18.0 2028-2032 91.9 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, 2022 2021 (Amounts in thousands) Balance — January 1 $ (70,581) $ (97,246) Amortization of net loss 2,450 4,207 Net gains arising during the year 21,099 17,995 Settlement losses 130 616 Prior service cost arising during the year (233) — Currency translation impact and other 4,714 3,847 Balance — December 31 $ (42,421) $ (70,581) Amounts recorded in accumulated other comprehensive loss consist of: December 31, 2022 2021 (Amounts in thousands) Unrecognized net loss $ (39,007) $ (67,192) Unrecognized prior service cost (3,414) (3,389) Accumulated other comprehensive loss, net of tax $ (42,421) $ (70,581) The following is a reconciliation of the non-U.S. plans’ defined benefit pension assets: December 31, 2022 2021 (Amounts in thousands) Balance — January 1 $ 275,941 $ 287,308 Return on plan assets (71,104) 1,631 Employee contributions 71 74 Company contributions 15,657 11,964 Settlements (8,039) (3,096) Currency translation impact (24,453) (4,624) Net benefits and expenses paid (15,797) (17,316) Balance — December 31 $ 172,276 $ 275,941 UK pension plans contributed to the change in the non-US plan assets due to lower asset re turns in 2022 and 2021, respectively. Our contributions to non-U.S. defined benefit pension plans in 2023 are expect ed 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 2022 and 2021 are as follows: Target Allocation at Percentage of Actual Plan Asset category 2022 2021 2022 2021 Cash and cash equivalents 1 % — % 1 % — % Cash and cash equivalents 1 % — % 1 % — % North American Companies — % 1 % — % 1 % Global Equity — % 1 % — % 1 % Equity securities — % 2 % — % 2 % U.K. Government Gilt Index 38 % 42 % 38 % 42 % Liability-Driven Investment 12 % 9 % 12 % 9 % Fixed income 50 % 51 % 50 % 51 % Multi-asset 20 % 20 % 20 % 20 % Buy-in Contracts 19 % 20 % 19 % 20 % Other 10 % 7 % 10 % 7 % Other types 49 % 47 % 49 % 47 % 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, 2022 At December 31, 2021 Hierarchical Levels Hierarchical Levels Total I II III Total I II III (Amounts in thousands) (Amounts in thousands) Cash $ 2,134 $ 2,134 $ — — $ 2,264 $ 2,264 $ — $ — Commingled Funds: Equity securities North American Companies(a) — — — — 2,609 — 2,609 — Global Equity(b) — — — — 2,516 — 2,516 — Fixed income securities U.K. Government Gilt Index(c) 65,650 — 65,650 — 115,450 — 115,450 — Liability-Driven Investment(d) 20,849 — 20,849 — 25,387 — 25,387 — Other Types of Investments: Multi-asset(e) 34,268 — 34,268 — 54,824 — 54,824 — Buy-in Contracts(f) 32,313 — — 32,313 54,896 — — 54,896 Other(g) 17,062 — — 17,062 17,995 — — 17,995 $ 172,276 $ 2,134 $ 120,767 $ 49,375 $ 275,941 $ 2,264 $ 200,786 $ 72,891 _______________________________________ (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 accrue d 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, 2022 was $24.3 million, with contributions and currency adjustments resulting in a fair value of $15.7 million at December 31, 2022. Similarly, the fair value of asset held in the U.K. plan Contract as of January 1, 2022 was $30.6 million, with contributions and currency adjustments resulting in a fair value of $16.6 million at December 31, 2022. (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, 2022 2021 (Amounts in thousands) Benefit Obligation $ 529,531 $ 230,688 Accumulated benefit obligation 519,287 215,535 Fair value of plan assets 401,285 59,232 In 2021, the fair value of its plan assets exceeded the benefit obligation for the U.S. plan, and is not included in the table above. 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, 2022 2021 2020 Weighted average assumptions used to determine Benefit Obligation: Discount rate 5.83 % 2.83 % 2.32 % Weighted average assumptions used to determine net expense: Discount rate 2.83 % 2.32 % 3.27 % The assumed ranges for the annual rates of increase in medical costs used to determine net expense were 7.25% for 2022, 7.50% for 2021 and 7.00% for 2020, with a gradual decrease to 5.00% for 2032 and future years. Net postretirement benefit cost for postretirement medical plans was: Year Ended December 31, 2022 2021 2020 (Amounts in thousands) Interest cost $ 464 $ 399 $ 596 Amortization of unrecognized prior service cost 122 122 122 Amortization of unrecognized net (gain) loss 192 (21) (132) Net postretirement benefit expense $ 778 $ 500 $ 586 The following summarizes the accrued postretirement benefits liability for the postretirement medical plans: December 31, 2022 2021 (Amounts in thousands) Postretirement Benefit Obligation $ 13,353 $ 17,021 Funded status $ (13,353) $ (17,021) The following summarizes amounts recognized in the balance sheet for postretirement Benefit Obligation: December 31, 2022 2021 (Amounts in thousands) Current liabilities $ (2,086) $ (2,239) Noncurrent liabilities (11,267) (14,782) Funded status $ (13,353) $ (17,021) The following is a reconciliation of the postretirement Benefit Obligation: December 31, 2022 2021 (Amounts in thousands) Balance — January 1 $ 17,021 $ 18,648 Interest cost 464 399 Employee contributions 792 874 Medicare subsidies receivable — 67 Actuarial (gain) loss (1,747) 1,225 Net benefits and expenses paid (3,177) (4,192) Balance — December 31 $ 13,353 $ 17,021 The following presents expected benefit payments for future periods (amounts in millions): Expected 2023 $ 2.1 2024 1.9 2025 1.8 2026 1.6 2027 1.5 2028-2032 5.3 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 postretirement benefits, net of tax: 2022 2021 (Amounts in thousands) Balance — January 1 $ (2,072) $ (1,213) Amortization of net (gain) loss 147 (16) Amortization of prior service cost 93 94 Net gain (loss) arising during the year 1,336 (937) Balance — December 31 $ (496) $ (2,072) Amounts recorded in accumulated other comprehensive loss consist of: December 31, 2022 2021 (Amounts in thousands) Unrecognized net gain (loss) $ 55 $ (1,420) Unrecognized prior service cost (551) (652) Accumulated other comprehensive income, net of tax $ (496) $ (2,072) We made contributions to the postretirement medical plans to pay b enefits of $2.4 million in 2022, $3.3 million in 2021 and $3.2 million in 2020. Because the postretirement medical plans are unfunded, we make contributions as the covered individuals’ claims are approved for payment. Accordingly, contribution s 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 $21.9 million in 2022, $19.9 million in 2021 and $20.0 million in 2020. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following is a reconciliation of net earnings of Flowserve Corporation and weighted average shares for calculating net earnings per common share. Earnings per weighted average common share outstanding was calculated as follows: Year Ended December 31, 2022 2021 2020 (Amounts in thousands, except per share data) Net earnings of Flowserve Corporation $ 188,689 $ 125,949 $ 130,420 Dividends on restricted shares not expected to vest — — — Earnings attributable to common and participating shareholders $ 188,689 $ 125,949 $ 130,420 Weighted average shares: Common stock 130,591 130,277 130,373 Participating securities 39 28 22 Denominator for basic earnings per common share 130,630 130,305 130,395 Effect of potentially dilutive securities 685 552 655 Denominator for diluted earnings per common share 131,315 130,857 131,050 Net earnings per share attributable to Flowserve Corporation common shareholders: Basic $ 1.44 $ 0.97 $ 1.00 Diluted 1.44 0.96 1.00 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. For the years ended December 31, 2022, 2021 and 2020, unvested restricted shares of 118,334, 156,578 and 375,203, respectively, were excluded from the computation of diluted earnings per share because the effect of their exercise would be anti-dilutive. |
Legal Matters and Contingencies
Legal Matters and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters and Contingencies | LEGAL MATTERS AND CONTINGENCIES Asbestos-Related Claims We are a defendant in a substantial number of lawsuits that seek to recover damages for personal injury allegedly caused by exposure to asbestos-containing products manufactured and/or distributed by our heritage companies in the past. Typically, these lawsuits have been brought against multiple defendants in state and federal courts. While the overall number of asbestos-related claims in which we or our predecessors have been named has generally declined in recent years, there can be no assurance that this trend will continue, or that the average cost per claim to us will not further increase. Asbestos-containing materials incorporated into any such products were encapsulated and used as internal components of process equipment, and we do not believe that significant emission of asbestos fibers occurred during the use of this equipment. Our practice is to vigorously contest and resolve these claims, and we have been successful in resolving a majority of claims with little or no payment, other than legal fees. Activity related to asbestos claims during the periods indicated was as follow s : 2022 2021 2020 Beginning claims, January 1,(1) 8,712 8,366 8,345 New claims 2,454 2,482 2,140 Resolved claims (2,204) (2,211) (2,203) Other(2) (823) 75 84 Ending claims, December 31,(1) 8,139 8,712 8,366 ____________________ (1) Beginning and ending claims data in each period excludes inactive claims, as the Company considers it unlikely that inactive cases will be pursued further by the respective plaintiffs. A claim is classified as inactive either due to inactivity over a period of time or if designated as inactive by the applicable court. (2) Represents the net change in claims as a result of the reclassification of active cases as inactive and inactive cases as active during the period indicated. Cases moved from active to inactive status are removed from the claims count without being accounted for as a "Resolved claim", and cases moved from inactive status to active status are added back to the claims count without being accounted for as a “New claim”. The following table presents the changes in the estimated asbestos liability as of December 31, 2022, 2021 and 2020: (Amounts in thousands) 2022 2021 2020 Beginning balance, January 1, $ 94,423 $ 99,530 $ 97,979 Asbestos liability adjustments, net 14,782 4,783 8,642 Cash payment activity (5,733) (7,521) (8,445) Other, net (4,820) (2,369) 1,354 Ending balance, December 31, $ 98,652 $ 94,423 $ 99,530 The Company incurred expenses of approximatel y $14.8 million, $10.0 million and $15.8 million during the periods ended December 31, 2022, 2021 and 2020, respectively, to defend, resolve or otherwise dispose of outstanding claims, including legal and other related expenses. These expenses are included within SG&A in the Consolidated Statements of Income. The Company had cash inflows/(outflows) (net of insurance and/or indemnity) to defend, resolve or otherwise dispose of outstanding claims, including legal and other related expenses of approximate ly $4.2 million, $(4.7) million and $4.8 million during the periods ended December 31, 2022, 2021 and 2020, respectively. Historically, a high percentage of resolved claims have been covered by applicable insurance or indemnities from other companies, and we believe that a portion of existing claims should continue to be covered by insurance or indemnities, in whole or in part. We believe that our reserve for asbestos claims and the receivable for recoveries from insurance carriers that we have recorded for these claims reflects reasonable and probable estimates of these amounts. Our estimate of our ultimate exposure for asbestos claims, however, is subject to significant uncertainties, including the timing, number and types of new claims, unfavorable court rulings, judgments or settlement terms and ultimate costs to settle. Additionally, the continued viability of carriers, may also impact the amount of probable insurance recoveries. We believe that these uncertainties could have a material adverse impact on our business, financial condition, results of operations and cash flows, though we currently believe the likelihood is remote. Additionally, we have claims pending against certain insurers that, if in future periods are resolved more favorably than reflected in the recorded receivables, would result in discrete gains in the applicable year. Other We are currently involved as a potentially responsible party at four 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, 2022 | |
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: Year Ended December 31, 2022 2021 2020 (Amounts in thousands) Balance — January 1 $ 23,893 $ 27,944 $ 30,854 Accruals for warranty expense, net of adjustments 17,342 19,179 21,701 Settlements made (19,188) (23,230) (24,611) Balance — December 31 $ 22,047 $ 23,893 $ 27,944 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY Dividends – Generally, our dividend date-of-record is in the last month of the quarter, and the dividend is paid the following month. Any subsequent dividends will be reviewed by our Board of Directors and declared in its discretion. Dividends declared per share were as follows: Year Ended December 31, 2022 2021 2020 Dividends declared per share $ 0.80 $ 0.80 $ 0.80 Share Repurchase Program – In 2014, our Board of Directors approved a $500.0 million share repurchase authorization. Our share repurchase program does not have an expiration date, and we reserve the right to limit or terminate the repurchase program at any time without notice. We repurchased no shares of our outstanding common stock during the year ended December 31, 2022, compared to 440,000 repurchases of shares of our outstanding common stock for $17.5 million |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The provision (benefit) for income taxes consists of the following: Year Ended December 31, 2022 2021 2020 (Amounts in thousands) Current: U.S. federal $ 45,130 $ 66,486 $ 40,234 Foreign 40,876 29,987 42,487 State and local 6,177 1,478 5,894 Total current provision (benefit) 92,183 97,951 88,615 Deferred: U.S. federal (88,498) (92,021) (50,038) Foreign (42,756) (4,339) 26,742 State and local (4,568) (4,185) (3,902) Total deferred provision (benefit) (135,822) (100,545) (27,198) Total provision (benefit) $ (43,639) $ (2,594) $ 61,417 The provision for income taxes differs from the statutory corporate rate due to the following: Year Ended December 31, 2022 2021 2020 (Amounts in millions) Statutory federal income tax at 21% $ 32.4 $ 28.1 $ 39.2 Base Erosion and Anti-abuse Tax (7.6) 7.6 — Foreign impact, net (22.3) (158.0) 0.1 Change in valuation allowances (50.5) 146.6 26.9 State and local income taxes, net 1.6 (2.7) 2.0 Reversal of deferred tax liabilities following legal entity reorganizations — (22.6) — Research and development credit (1.0) (3.6) (5.2) Non-deductible items 2.3 4.4 1.8 U.S. federal tax return to accrual adjustments, not separately disclosed in other categories 1.8 (0.8) (1.6) Recognition of compensation costs related to restricted shares 2.4 (1.3) 1.0 Intercompany profit in inventory (2.0) (0.3) 0.3 Other, net (0.7) — (3.1) Total (43.6) (2.6) 61.4 Effective tax rate (28.3) % (1.9) % 30.4 % On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act of 2017 (the “Tax Reform Act”), which provided the base-erosion and anti-abuse tax (“BEAT”) provision which effectively creates a new minimum tax on certain deductible payments to foreign affiliates. For the year ended December 31, 2022, we are not subject to BEAT tax, and the previously recorded 2021 BEAT tax was reversed in 2022 following finalization of the 2021 U.S. federal income tax return. For the year ended December 31, 2022, the change in valuation allowances is driven mainly by the release of the valuation allowance against our deferred tax assets in Germany and Mexico partially offset by a valuation allowance establishment in Argentina as well as the release of the valuation allowance on our U.S. foreign tax credit carryforwards on general category income. The Company determined that the net deferred tax assets in Germany and Mexico are realizable based on recent history of profitability and future income projections. In addition, we determined that the U.S. foreign tax credit carryforwards on general category income were realizable based on the development of a tax planning strategy.. For the year ended December 31, 2021, the net foreign impact is driven mainly by the Hungarian net operating loss and foreign tax credit carryforward that are both fully offset in the change in valuation allowance (see discussion below). For the years ended December 31, 2022, 2021 and 2020 we have asserted indefinite reinvestment on certain earnings of our foreign subsidiaries. As of December 31, 2022, we had not recorded approximately $24.5 million of deferred tax liabilities associated with remaining unremitted earnings considered indefinitely reinvested, specifically related to foreign withholding taxes that would be due upon repatriation of the designated earnings to the U.S. While the company has estimated the foreign withholding tax impact related to distributing earnings currently deemed permanently reinvested, the calculation of the potential US tax consequences associated with the distribution of earnings currently deemed permanently reinvested is impracticable. 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, 2022 2021 (Amounts in thousands) Deferred tax assets related to: Net operating loss carryforwards $ 183,541 $ 200,196 Credit and capital loss carryforwards 197,774 185,832 Warranty and accrued liabilities 49,302 26,116 Section 59(e) capitalized expenses 54,486 43,434 Other 168,933 161,418 Total deferred tax assets 654,036 616,996 Valuation allowances (356,557) (415,962) Net deferred tax assets $ 297,479 $ 201,034 Deferred tax liabilities related to: Goodwill and intangibles $ (123,088) $ (123,133) Foreign undistributed earnings (11,154) (15,529) Operating lease right-of-use-assets (20,453) (25,556) Other (1,395) (1,936) Total deferred tax liabilities (156,090) (166,154) Deferred tax asset (liabilities), net $ 141,389 $ 34,880 We h ad $1,475.0 million of U.S. and foreign net operating loss carryforwards at December 31, 2022. Of this total, $19.8 million are state net operating losses. State net operating losses generated in the U.S., if unused, will expire in 2027. $234.0 million of our foreign net operating losses carry forward without expiration. Our Hungarian net operating loss of $1,089.0 million that has a full valuation allowance (see discussion below), if unused, will expire in 2025. The remaining foreign net operating losses of $132.1 million that do not carry forward without expiration, if unused, will expire between 2023-2033. Additionally, we had $93.5 million of foreign tax credit carryforwards at December 31, 2022, that have a valuation allowance on the foreign branch category income (see discussion below), if unused, will expire between 2026-2032. The following schedule presents the changes in deferred tax asset valuation allowance as follows: (Amounts in thousands) Balance at Additions Additions charged to other accounts - currency effects and other, net Deductions from reserve Balance at end of year Year Ended December 31, 2022 Deferred tax asset valuation allowance(1): $ 415,962 $ 36,822 $ (11,775) $ (84,452) $ 356,557 Year Ended December 31, 2021 Deferred tax asset valuation allowance(1): 287,410 178,203 (15,572) (34,079) 415,962 Year Ended December 31, 2020 Deferred tax asset valuation allowance(1): 266,414 49,950 (529) (28,425) 287,410 ______________________________ (1) Deductions from reserve result from the release of valuation allowances on deferred tax assets, expiration or utilization of net operating losses and foreign tax credits previously reserved. Additions to reserve result from the establishment of valuation allowances on deferred tax assets, generation of net operating losses and foreign tax credits. The Company maintains a full valuation allowance against the net deferred tax assets in certain foreign jurisdictions as of December 31, 2022. As of each reporting date, management considers new evidence, both positive and negative that could affect its view of the future realization of net deferred tax assets. It is possible that within the next 12 months there may be sufficient positive evidence to release a portion or all of the remaining valuation allowance in those foreign jurisdictions. Release of the valuation allowance would result in a benefit to income tax expense for the period the release is recorded, which could have a material impact on net earnings. The timing and amount of the potential valuation allowance release are subject to significant management judgment and the level of profitability achieved. Our valuation allowances primarily relate to the deferred tax assets established for U.S. foreign tax credit carryforwards on foreign branch category income of $45.2 million, Hungarian net operating loss carryforward of $98.0 million, a foreign capital loss carryforward of $100.0 million, and other foreign deferred tax assets of $113.4 million. The Hungarian net operating loss carryforward was a result of a local statutory impairment of investments in subsidiaries in 2021. It is more likely than not that the loss will not be utilized within its five year carryforward period and, therefore, has a full valuation allowance. The foreign capital loss carryforward was the result of a reorganization of certain foreign subsidiaries in 2019. Due to its capital nature, it is more likely than not that the loss will not be utilized within its ten year carryforward period and, therefore, has a full valuation allowance. Earnings before income taxes comprised: Year Ended December 31, 2022 2021 2020 (Amounts in thousands) U.S. $ 63,508 $ (52,915) $ 73,109 Foreign 90,868 186,504 129,183 Total $ 154,376 $ 133,589 $ 202,292 A tabular reconciliation of the total gross amount of unrecognized tax benefits, excluding interest and penalties, is as follows (in millions): 2022 2021 2020 Balance — January 1 $ 49.9 $ 54.8 $ 40.6 Gross amount of increase (decrease) in unrecognized tax benefits resulting from tax positions taken: During a prior year 5.4 8.0 3.8 During the current period 5.8 4.5 11.1 Decreases in unrecognized tax benefits relating to: Settlements with taxing authorities (5.5) (10.2) (0.2) Lapse of the applicable statute of limitations (4.1) (5.1) (2.5) Increase (decrease) in unrecognized tax benefits relating to foreign currency translation adjustments (1.3) (2.1) 2.0 Balance — December 31 $ 50.2 $ 49.9 $ 54.8 The amount of gross unrecognized tax benefits at December 31, 2022, was $71.1 million, which includes $20.9 million of accrued interest and penalties. Of this amount $57.5 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 2017, state and local income tax audits for years through 2016 or foreign income tax audits for years through 2015. We are currently under examination for various years in Canada, China, Germany, India, Indonesia, Italy, Kenya, Madagascar, Malaysia, Mexico, the Philippines, Saudi Arabia, the U.S. and Venezuela. It is reasonably possible that within the next 12 months the effective tax rate will be impacted by the resolution of some or all of the matters audited by various taxing authorities. It is also reasonably possible that we will have the statute of limitations close in various taxing jurisdictions within the next 12 months. As such, we estimate we could record a reduction in our tax expense up to approximately $12 million within the n ext 12 months. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Business Segment Information | BUSINESS SEGMENT INFORMATION 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. Inter segment 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, 2022, 2021 and 2020 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, 2022: Sales to external customers $2,518,000 $ 1,097,120 $ 3,615,120 $ — $ 3,615,120 Intersegment sales 4,508 3,489 7,997 (7,997) — Segment operating income (loss) 207,957 113,417 321,374 (124,155) 197,219 Depreciation and amortization 49,654 18,931 68,585 22,368 90,953 Identifiable assets 3,110,733 1,269,690 4,380,423 410,211 4,790,634 Capital expenditures 34,295 17,178 51,473 24,814 76,287 Subtotal—Reportable Segments Eliminations and All Other Consolidated Total FPD FCD (Amounts in thousands) Year Ended December 31, 2021: Sales to external customers $2,468,098 $ 1,072,962 $ 3,541,060 $ — $ 3,541,060 Intersegment sales 2,750 2,924 5,674 (5,674) — Segment operating income (loss) 243,203 119,651 362,854 (92,095) 270,759 Depreciation and amortization 51,094 21,286 72,380 27,442 99,822 Identifiable assets 2,927,346 1,223,316 4,150,662 599,106 4,749,768 Capital expenditures 21,575 12,283 33,858 21,078 54,936 Subtotal—Reportable Segments Eliminations and All Other Consolidated Total FPD FCD (Amounts in thousands) Year Ended December 31, 2020: Sales to external customers $ 2,673,705 $ 1,054,429 $ 3,728,134 $ — $ 3,728,134 Intersegment sales 1,965 3,120 5,085 (5,085) — Segment operating income (loss) 270,960 125,573 396,533 (146,256) 250,277 Depreciation and amortization 52,390 21,949 74,339 26,414 100,753 Identifiable assets 3,039,069 1,308,136 4,347,205 967,472 5,314,677 Capital expenditures 21,714 14,043 35,757 21,648 57,405 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. Sales and long-lived assets by geographic area are as follows: Year Ended December 31, 2022 Sales Percentage Long-Lived Percentage (Amounts in thousands, except percentages) United States $ 1,536,961 42.5 % $ 412,896 46.6 % EMA(1) 1,210,436 33.5 % 274,511 30.9 % Asia(2) 524,952 14.5 % 144,206 16.2 % Other(3) 342,771 9.5 % 56,132 6.3 % Consolidated total $ 3,615,120 100.0 % $ 887,745 100.0 % Year Ended December 31, 2021 Sales Percentage Long-Lived Percentage (Amounts in thousands, except percentages) United States $ 1,376,771 38.9 % $ 476,176 49.2 % EMA(1) 1,270,326 35.9 % 298,426 30.8 % Asia(2) 557,314 15.7 % 141,810 14.6 % Other(3) 336,649 9.5 % 51,688 5.4 % Consolidated total $ 3,541,060 100.0 % $ 968,100 100.0 % Year Ended December 31, 2020 Sales Percentage Long-Lived Percentage (Amounts in thousands, except percentages) United States $ 1,463,680 39.3 % $ 455,622 46.2 % EMA(1) 1,385,245 37.2 % 336,577 34.1 % Asia(2) 535,440 14.4 % 138,947 14.1 % Other(3) 343,769 9.1 % 55,278 5.6 % Consolidated total $ 3,728,134 100.0 % $ 986,424 100.0 % ___________________________________ (1) "EMA " includes Europe, the Middle East and Africa. U. K. accounted for approximate ly 10% f or 2022, 10% for 2021 and 9% for 2020, of consolidated long-lived assets. No other individual country within t his group represents 10% or more of consolidated totals for any period presented. (2) "Asia" includes Asia and Austral ia. No individual country wi thin this group represents 10% or more of consolidated totals for any period presented. (3) "Other" includes Canada and Latin Am erica. 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 62% of total sales in 2022, 67% of total sales in 2021 and 65% of total sales in 2020. Major Custo mer 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, 2022 | |
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: 2022 2021 (Amounts in thousands) Foreign currency translation items(1) Pension and other post-retirement effects Cash flow hedging activity (2) Total(1) Foreign currency translation items(1) Pension and other post-retirement effects Cash flow hedging activity (2) Total(1) Balance - January 1 $ (456,025) $ (101,665) $ (1,336) $ (559,026) $ (456,549) $ (146,723) $ (488) $ (603,760) Other comprehensive income (loss) before reclassifications (3) (98,658) 16,684 314 (81,660) 524 34,960 — 35,484 Amounts — (1,375) 89 (1,286) — 10,098 (848) 9,250 Net current-period other comprehensive income (loss) (3) (98,658) 15,309 403 (82,946) 524 45,058 (848) 44,734 Balance - December 31 $ (554,683) $ (86,356) $ (933) $ (641,972) $ (456,025) $ (101,665) $ (1,336) $ (559,026) _______________________________________ (1) Includes foreign currency translation adjustments attributable to noncontrolling interests of $5.8 million, $4.6 million and $5.9 million for December 31, 2022, 2021 and 2020, respectively. Also includes the cumulative impacts from the changes in fair value of our cross-currency swaps, which were $49.0 million, $17.7 million and $(13.8) million for December 31, 2022, 2021 and 2020, respectively. (2) Other comprehensive loss before reclassifications and amounts reclassified from AOCL to interest expense related to designated cash flow hedges. (3) Amounts in parentheses indicate an increase to AOCL. The following table presents the reclassifications out of AOCL: (Amounts in thousands) Affected line item in the statement of income 2022(1) 2021(1) Pension and other postretirement effects Amortization of actuarial losses(2) Other income (expense), net $ (6,382) $ (12,213) Prior service costs(2) Other income (expense), net (591) (610) Settlements and other(2) Other income (expense), net (75) (640) Tax benefit (expense) 8,423 3,365 Net of tax $ 1,375 $ (10,098) Cash flow hedging activity Amortization of Treasury rate lock Interest income (expense) $ (117) $ 848 Tax benefit (expense) 28 — Net of tax $ (89) $ 848 ______________________________________ (1) Amounts in parentheses indicate decreases to income. None of the reclassification amounts have a noncontrolling interest component. (2) These AOCL 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, 2022 | |
Restructuring and Related Activities [Abstract] | |
Realignment and Transformation Programs | ALIGNMENT PROGRAMSIn the second quarter of 2020, we identified and initiated certain realignment activities to right-size our organizational operations based on the current business environment, with the overall objective to reduce our workforce costs, including manufacturing optimization through the consolidation of certain facilities ("Realignment Program"). The realignment activities consist of restructuring and non-restructuring charges. Restructuring charges represent costs associated with the relocation of certain business activities and facility closures and include related severance costs. Non-restructuring charges are primarily employee severance associated with the workforce reductions. Severance costs primarily include costs associated with involuntary termination benefits. Expenses are primarily reported in cost of sales ("COS") or selling, general and administrative ("SG&A"), as applicable, in our consolidated statements of income. The total investment in these activities is approximately $95 million with the vast majority of the charges incurred in 2020 and 2021. There are certain remaining realignment activities that are being evaluated, but have not yet been finalized and therefore not included in the anticipated total investment. Generally, the aforementioned charges will be paid in cash, except for asset write-downs, which are non-cash charges. The following is a summary of total charges, net of adjustments, incurred related to our Realignment Program: December 31, 2022 (Amounts in thousands) FPD FCD Subtotal–Reportable Segments All Other Consolidated Total Restructuring Charges COS $ 768 $ 93 $ 861 $ — $ 861 SG&A — (4) (4) — (4) $ 768 $ 89 $ 857 $ — $ 857 Non-Restructuring Charges COS $ (530) $ 86 $ (444) $ (61) $ (505) SG&A 148 (391) (243) (274) (517) $ (382) $ (305) $ (687) $ (335) $ (1,022) Total Realignment Charges COS $ 238 $ 179 $ 417 $ (61) $ 356 SG&A 148 (395) (247) (274) (521) Total $ 386 $ (216) $ 170 $ (335) $ (165) December 31, 2021 (Amounts in thousands) FPD FCD Subtotal–Reportable Segments All Other Consolidated Total Restructuring Charges COS $ 8,046 $ 811 $ 8,857 $ — $ 8,857 SG&A 665 (9) 656 — 656 $ 8,711 $ 802 $ 9,513 $ — $ 9,513 Non-Restructuring Charges COS $ 6,203 $ 1,196 $ 7,399 $ 590 $ 7,989 SG&A 368 708 1,076 3,913 4,989 $ 6,571 $ 1,904 $ 8,475 $ 4,503 $ 12,978 Total Realignment and Transformation Charges COS $ 14,249 $ 2,007 $ 16,256 $ 590 $ 16,846 SG&A 1,033 699 1,732 3,913 5,645 Total $ 15,282 $ 2,706 $ 17,988 $ 4,503 $ 22,491 The following is a summary of total inception to date charges, net of adjustments, related to the Realignment Program: Inception to Date (Amounts in thousands) FPD FCD Subtotal–Reportable Segments All Other Consolidated Total Restructuring Charges COS $ 26,642 $ 2,131 $ 28,773 $ — $ 28,773 SG&A 716 328 1,044 (16) 1,028 $ 27,358 $ 2,459 $ 29,817 $ (16) $ 29,801 Non-Restructuring Charges COS $ 24,877 $ 808 $ 25,685 $ 581 $ 26,266 SG&A 11,197 4,871 16,068 21,521 37,589 $ 36,074 $ 5,679 $ 41,753 $ 22,102 $ 63,855 Total Realignment Charges COS $ 51,519 $ 2,939 $ 54,458 $ 581 $ 55,039 SG&A 11,913 5,199 17,112 21,505 38,617 Total $ 63,432 $ 8,138 $ 71,570 $ 22,086 $ 93,656 Restructuring charges represent costs related to employee severance at closed facilities, contract termination costs, asset write-downs and other costs. Contract termination costs include costs related to the termination of operating leases or other contract termination costs. Asset write-downs include accelerated depreciation of fixed assets, accelerated amortization of intangible assets, divestiture of certain non-strategic assets and inventory write-downs. Other costs generally include costs related to employee relocation, asset relocation, vacant facility costs (i.e., taxes and insurance) and other charges. The following is a summary of restructuring charges, net of adjustments, for our restructuring activities. Restructuring charges incurred related to our Realignment Program: December 31, 2022 (Amounts in thousands) Severance Contract Termination Asset Write-Downs Other Total COS $ 122 $ 327 $ 273 $ 139 $ 861 SG&A (4) — — — (4) Total $ 118 $ 327 $ 273 $ 139 $ 857 December 31, 2021 (Amounts in thousands) Severance Contract Termination Asset Write-Downs Other Total COS $ 964 $ 34 $ 2,683 $ 5,176 $ 8,857 SG&A 167 — — 489 656 Total $ 1,131 $ 34 $ 2,683 $ 5,665 $ 9,513 The following is a summary of total inception to date charges, net of adjustments, related to our Realignment Program: Inception to Date (Amounts in thousands) Severance Contract Termination Asset Write-Downs Other Total COS $ 16,324 $ 413 $ 4,368 $ 7,668 $ 28,773 SG&A 247 — 14 767 1,028 Total $ 16,571 $ 413 $ 4,382 $ 8,435 $ 29,801 The following represents the activity, primarily severance, related to the restructuring reserve for the Realignment Programs for the years ended December 31, 2022 and 2021: (Amounts in thousands) 2022 2021 Balance at January 1, $ 4,868 $ 18,255 Charges 584 6,829 Cash expenditures (3,518) (18,942) Other non-cash adjustments, including currency (969) (1,274) Balance at December 31, $ 965 $ 4,868 |
Significant Accounting Polici_2
Significant Accounting Policies and Accounting Developments (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Acquisition | Acquisition — On February 9, 2023 the Company entered into a definitive agreement under which it will acquire all of the outstanding equity of Velan Inc., a manufacturer of highly engineered industrial valves, in an all cash transaction valued at approximately $245 million. The transaction is subject to customary closing conditions, including applicable regulatory approvals and target shareholder approval, and is expected to close by the end of the second quarter of 2023 |
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 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. |
Reclassifications | Reclassifications — Certain reclassifications have been made to prior year financial information to conform to the current year presentation. |
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 — 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. Service-related revenues do not typically represent a significant portion contracts with our customers and do not meet the thresholds requiring separate disclosure. 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. |
Accounts Receivable, Allowance for Expected Credit Losses and Credit Risk | Accounts Receivable, Allowance for Expected Credit Losses and Credit Risk — Trade accounts receivables are recorded at the invoiced amount and do not bear interest. We establish an allowance for expected credit losses on an aging schedule and according to historical losses as determined from our billings and collections history. Additionally, we consider factors that are specific to our customers’ credit risk such as financial difficulties, liquidity issues, insolvency, and country and political risk. We also consider both the current and forecasted direction of macroeconomic conditions at the reporting date in estimating expected credit losses. Receivables are written off against the allowance in the period when the receivable is deemed to be uncollectible and further collection efforts have ceased. Subsequent recoveries of amounts previously written off are reflected as a reduction to credit impairment losses in the income statement. 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. We are a defendant in a number of lawsuits that seek to recover damages for personal injury allegedly resulting from exposure to asbestos-containing products formerly manufactured and/or distributed by heritage companies of the Company. We have estimated that the liability for pending and future claims not yet asserted, and which are probable and estimable, could be experienced through 2052, which represents the expected end of our asbestos liability exposure with no further ongoing claims expected beyond that date. This estimate is based on the Company's historical claim experience and estimates of the number and resolution cost of potential future claims that may be filed based on anticipated levels of unique plaintiff asbestos-related claims in the U.S. tort system against all defendants, the diminished volatility and consistency of observable claims data, the period of time that has elapsed since we stopped manufacturing products that contained encapsulated asbestos and an expected downward trend in claims due to the average age of our claimants. This estimate is not discounted to present value. In light of the uncertainties and variables inherent in the long-term projection of the total asbestos liability, as part of our ongoing review of asbestos claims, each year we will reassess the projected liability of unasserted asbestos claims to be filed through 2052, and we will continually reassess the time horizon over which a reasonable estimate of unasserted claims can be projected. We assess the sufficiency of the estimated liability for pending and future claims on an ongoing basis by evaluating actual experience regarding claims filed, settled and dismissed, and amounts paid in settlements. In addition to claims and settlement experience, we consider additional quantitative and qualitative factors such as changes in legislation, the legal environment and the Company's defense strategy. In connection with our ongoing review of asbestos-related claims, we have also reviewed the amount of potential insurance coverage for such claims, taking into account the remaining limits of such coverage, the number and amount of claims on our insurance from co-insured parties, ongoing litigation against the Company’s insurers, potential remaining recoveries from insolvent insurers, the impact of previous insurance settlements and coverage available from solvent insurers not party to the coverage litigation. Continuously, we review ongoing insurance coverage available for a significant amount of the potential future asbestos-related claims and in the future could secure additional insurance coverage as deemed necessary. The study from the Company's actuary, based on d ata as of August 31, 2022, provided for a range of possible future liability from approximate ly $81.8 million to $127.3 million. The Co mpany does not believe any amount within the range of potential outcomes represents a better estimate than another given the many factors and assumptions inherent in the projections and therefore the Company has recorded the liability at the actuarial central estimate of approximately $98.7 million as of December 31, 2022. In addition, the Company has recorded estimated insurance receivables of approxi mately $42.5 million as of December 31, 2022. The amounts recorded for the asbestos-related liability and the related insurance receivables are based on facts known at the time and a number of assumptions. However, projecting future events, such as the number of new claims to be filed each year, the length of time it takes to defend, resolve, or otherwise dispose of such claims, coverage issues among insurers and the continuing solvency of various insurance companies, as well as the numerous uncertainties surrounding asbestos litigation in the United States, could cause the actual liability and insurance recoveries for us to be higher or lower than those projected or recorded. 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 year. Changes recorded in the estimated liability and estimated insurance recovery based on projections of asbestos litigation and corresponding insurance coverage, result in the recognition of additional expense or income. For a discussion pertaining to the activity related to asbestos claims refer to Note 15. |
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 prec |
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 30 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. Right-of-use ("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. In determining the discount rate used to measure the right-of-use asset and lease liability, we utilize the Company’s incremental borrowing rate and consider the term of the lease, as well as the geographic location of the leased asset. 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, 2022 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. |
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, typi cally three three |
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 fr om four |
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 begins 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 three 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. Accounting Standards Codification ("ASC") 350 allows an optional qualitative assessment, prior to a quantitative assessment test, to determine whether it is more likely than not that the fair value of a reporting unit exceeds its carrying amount. We generally do not attempt a qualitative assessment and proceed directly to the quantitative test. If the carrying value of a reporting unit exceeds its fair value, the goodwill of that reporting unit is impaired and an impairment loss is recorded equal to the excess of the carrying value over its fair 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 2022, 2021 or 2020. The pump reporting unit is a component of FPD reporting segment and is primarily focused on highly engineered custom and pre-configured pump products and systems. As of December 31, 2022 our pump reporting unit had approximately $277 million of goodwill and an estimated fair value that exceeded its carrying value by approximately 65% as compared to estimated fair value that exceeded its carrying value by approximately 82% and 46% as of December 31, 2021 and 2020, respectively. The key factors considered in determining the estimated fair value of our reporting units included the annual operating plan and forecasted operating results, successful execution of our current continuous improvement and identified strategic initiatives, a constant cost of capital, continued stabilization and mid to long-term improvement of the macro-economic conditions of the oil and gas market, and a relatively stable global gross domestic product. Although we have concluded that there is no impairment on the goodwill associated with our pump reporting unit as of December 31, 2022, we will continue to closely monitor its performance and related market conditions for future indicators of potential impairment and reassess accordingly. We also considered our market capitalization in our evaluation of the fair value of our goodwill. Our market capitalization as of December 31, 2022 was comparable with 2021 and did not indicate a potential impairment of our goodwill as of December 31, 2022. 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 2022, 2021 or 2020. |
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 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. |
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. |
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. |
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 shares, restricted share units 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. |
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 $39.9 million , $34.2 million and $36.1 million in 2022, 2021 and 2020, respectively. Costs incurred for research and development primarily include salaries and benefits and consumable supplies, as well as rent, professional fees, utilities and the depreciat ion of property and equipment used in research and development activities. |
Shipping and Handling Costs | Shipping and Handling Costs — Amounts billed to customers for reimbursement of shipping and handling costs are recorded as revenue when the related revenue is recognized and shipping and handling costs are recognized in Cost of sales. All other shipping and handling costs are recognized in Cost of sales in the period in which they are incurred. |
Accounting Developments | Accounting Developments Pronouncements Implemented In November 2021, the FASB issued ASU No. 2021-10, "Government Assistance (Topic 832)." The amendments in this ASU do not change GAAP and, therefore, are not expected to result in a significant change in practice. Rather, the amendments aim to provide increased transparency by requiring business entities to disclose information about certain types of government assistance they receive in the notes to the financial statements. The amendments are effective for annual periods beginning after December 15, 2021 and can be applied either prospectively or retrospectively. The adoption of this ASU did not have a material impact on our consolidated balance sheets, consolidated statements of income or consolidated statements of cash flows. Pronouncements Not Yet Implemented In October 2021, the FASB issued ASU No. 2021-08, "Accounting for Contract Assets and Contract Liabilities from Contracts with Customers." The amendments in this Update improve comparability for both the recognition and measurement of acquired revenue contracts with customers at the date of and after a business combination. The amendments are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years and should be applied prospectively to business combinations occurring on or after the effective date of the amendments. We do not expect the impact of this ASU to be material. |
Significant Accounting Polici_3
Significant Accounting Policies and Accounting Developments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Disaggregation of Revenue | The following table presents our customer revenues disaggregated by revenue source: December 31, 2022 (Amounts in thousands) FPD FCD Total Original Equipment $ 881,061 $ 825,508 $ 1,706,569 Aftermarket 1,636,939 271,612 1,908,551 $ 2,518,000 $ 1,097,120 $ 3,615,120 December 31, 2021 (Amounts in thousands) FPD FCD Total Original Equipment $ 899,519 $ 804,744 $ 1,704,263 Aftermarket 1,568,579 268,218 1,836,797 $ 2,468,098 $ 1,072,962 $ 3,541,060 December 31, 2020 (Amounts in thousands) FPD FCD Total Original Equipment $ 1,091,906 $ 808,585 $ 1,900,491 Aftermarket 1,581,799 245,844 1,827,643 $ 2,673,705 $ 1,054,429 $ 3,728,134 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, 2022 (Amounts in thousands) FPD FCD Total North America(1) $ 1,060,393 $ 472,467 $ 1,532,860 Latin America(1) 222,878 23,575 246,453 Middle East and Africa 372,148 101,017 473,165 Asia Pacific 389,366 305,193 694,559 Europe 473,215 194,868 668,083 $ 2,518,000 $ 1,097,120 $ 3,615,120 December 31, 2021 (Amounts in thousands) FPD FCD Total North America(1) $ 955,283 $ 389,766 $ 1,345,049 Latin America(1) 211,150 30,554 241,704 Middle East and Africa 311,161 107,533 418,694 Asia Pacific 482,596 333,513 816,109 Europe 507,908 211,596 719,504 $ 2,468,098 $ 1,072,962 $ 3,541,060 December 31, 2020 (Amounts in thousands) FPD FCD Total North America(1) $ 1,039,285 $ 429,572 $ 1,468,857 Latin America(1) 191,517 26,393 217,910 Middle East and Africa 359,403 110,539 469,942 Asia Pacific 537,792 270,238 808,030 Europe 545,708 217,687 763,395 $ 2,673,705 $ 1,054,429 $ 3,728,134 _____________________________________ (1) North America represents United States and Canada; Latin America includes Mexico. |
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, 2022 and 2021: ( Amounts in thousands) Contract Assets, net (Current) Long-term Contract Assets, net(1) Contract Liabilities (Current) Long-term Contract Liabilities(2) Balance — January 1, 2021 $ 277,734 $ 1,139 $ 194,227 $ 822 Revenue recognized that was included in contract liabilities at the beginning of the period — — (153,221) — Increase due to revenue recognized in the period in excess of billings 784,934 — — — Increase due to billings arising during the period in excess of revenue recognized — — 165,990 — Amounts transferred from contract assets to receivables (848,031) (2,329) — — Currency effects and other, net (19,039) 1,616 (4,031) (358) Balance — December 31, 2021 $ 195,598 $ 426 $ 202,965 $ 464 Revenue recognized that was included in contract liabilities at the beginning of the period — — (143,736) — Increase due to revenue recognized in the period in excess of billings 660,039 — — — Increase due to billings arising during the period in excess of revenue recognized — — 203,711 — Amounts transferred from contract assets to receivables (603,422) (1,338) — — Currency effects and other, net (18,758) 1,209 (5,977) 595 Balance — December 31, 2022 $ 233,457 $ 297 $ 256,963 $ 1,059 _____________________________________ (1) Included in other assets, net. |
Allowance for Expected Credit_2
Allowance for Expected Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
Summary of Changes in Allowance for Expected Credit Losses for Trade Receivables | The following table presents the changes in the allowance for expected credit losses for our accounts receivable and short-term contract assets as of December 31, 2022, 2021 and 2020: (Amounts in thousands) Accounts receivable Short-term contract assets Beginning balance, January 1, 2022 $ 74,336 $ 2,393 Charges to cost and expenses, net of recoveries 12,530 2,785 Write-offs (3,188) — Currency effects and other, net (616) 641 Ending balance, December 31 , 2022 $ 83,062 $ 5,819 Beginning balance, January 1, 2021 $ 75,176 $ 3,205 Charges to cost and expenses, net of recoveries 3,934 — Write-offs (2,015) — Currency effects and other, net (2,759) (812) Ending balance, December 31 , 2021 $ 74,336 $ 2,393 Beginning balance, January 1, 2020 $ 53,412 $ 206 Adoption of ASU 2016-13 6,970 2,779 Charges to cost and expenses, net of recoveries 9,326 — Currency effects and other, net 5,468 220 Ending balance, December 31 , 2020 $ 75,176 $ 3,205 |
Summary of Changes in Allowance for Expected Credit Losses for Long-term Receivables | The following table presents the changes in the allowance for long-term receivables as of December 31, 2022, 2020 and 2020: (Amounts in thousands) 2022 2021 2020 Beginning balance, January 1, $ 67,696 $ 67,842 $ 68,555 Adoption of ASU 2016-13 — — (679) Currency effects and other, net (1,319) (146) (34) Ending balance, December 31, $ 66,377 $ 67,696 $ 67,842 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Summary of Other Lease Information | Other information related to our leases is as follows: December 31, 2022 2021 (Amounts in thousands) Finance Leases: ROU assets recorded under finance leases $ 33,427 $ 28,416 Accumulated depreciation associated with finance leases (15,851) (12,227) Total finance leases ROU assets, net(1) $ 17,576 $ 16,189 Total finance leases liabilities(2) $ 17,939 $ 16,477 The costs components of operating and finance leases are as follows: December 31, 2022 2021 2020 (Amounts in thousands) Operating Lease Costs: Fixed lease expense(3) $ 59,782 $ 57,482 $ 57,050 Variable lease expense(3) 7,412 9,331 7,299 Total operating lease expense $ 67,194 $ 66,813 $ 64,349 Finance Lease Costs: Depreciation of finance lease ROU assets(3) $ 5,984 $ 5,374 $ 5,392 Interest on lease liabilities(4) 604 617 646 Total finance lease expense $ 6,588 $ 5,991 $ 6,038 _____________________ (1) Included in property, plant and equipment, net (2) Included in debt due within one year long-term debt due after one year (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 related to our leases is as follows: December 31, (Amounts in thousands, except lease term and discount rate) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases(1) $ 57,712 $ 61,240 $ 66,478 Financing cash flows from finance leases(2) 6,039 5,285 4,704 ROU assets obtained in exchange for lease obligations: Operating leases $ 26,581 $ 35,542 $ 62,425 Finance leases 7,906 4,177 13,124 Weighted average remaining lease term (in years) Operating leases 8 years 8 years 9 years Finance leases 6 years 6 years 7 years Weighted average discount rate (percent) Operating leases 4.0 % 3.9 % 4.2 % Finance leases 3.9 % 3.4 % 3.5 % _____________________ (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, 2022, were as follows: Year ending December 31, Operating Finance Leases (Amounts in thousands) 2023 38,724 5,767 2024 33,466 4,288 2025 26,466 3,092 2026 21,565 1,549 2027 18,895 694 Thereafter 81,007 4,955 Total future minimum lease payments $ 220,123 $ 20,345 Less: Imputed interest (32,399) (2,406) Total $ 187,724 $ 17,939 Other current liabilities $ 32,528 $ — Operating lease liabilities 155,196 — Debt due within one year — 5,545 Long-term debt due after one year — 12,394 Total $ 187,724 $ 17,939 |
Schedule of Future Operating Lease Payments | Future undiscounted lease payments under operating and finance leases as of December 31, 2022, were as follows: Year ending December 31, Operating Finance Leases (Amounts in thousands) 2023 38,724 5,767 2024 33,466 4,288 2025 26,466 3,092 2026 21,565 1,549 2027 18,895 694 Thereafter 81,007 4,955 Total future minimum lease payments $ 220,123 $ 20,345 Less: Imputed interest (32,399) (2,406) Total $ 187,724 $ 17,939 Other current liabilities $ 32,528 $ — Operating lease liabilities 155,196 — Debt due within one year — 5,545 Long-term debt due after one year — 12,394 Total $ 187,724 $ 17,939 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021 are as follows: FPD FCD Total (Amounts in thousands) Balance as of December 31, 2020 $ 805,055 $ 419,831 $ 1,224,886 Currency translation and other (17,842) (10,565) (28,407) Balance as of December 31, 2021 $ 787,213 $ 409,266 $ 1,196,479 Currency translation and other (14,940) (13,415) (28,355) Balance as of December 31, 2022 $ 772,273 $ 395,851 $ 1,168,124 |
Schedule of Changes in Intangible Assets | The following table provides information about our intangible assets for the years ended December 31, 2022 and 2021: December 31, 2022 December 31, 2021 Useful Ending Accumulated Ending Accumulated (Amounts in thousands, except years) Finite-lived intangible assets: Engineering drawings(1) 10-22 $ 88,830 $ (88,256) $ 89,699 $ (86,275) Existing customer relationships(2) 5-10 79,472 (70,015) 82,420 (67,279) Patents 9-16 25,639 (25,639) 26,339 (26,339) Other 4-40 92,798 (49,481) 93,849 (46,436) $ 286,739 $ (233,391) $ 292,307 $ (226,329) Indefinite-lived intangible assets(3) $ 82,640 $ (1,485) $ 88,069 $ (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 2022 and an estimate of future amortization based upon the finite-lived intangible assets owned at December 31, 2022: Amortization (Amounts in thousands) Actual for year ended December 31, 2022 $ 11,436 Estimated for year ended December 31, 2023 9,715 Estimated for year ended December 31, 2024 5,616 Estimated for year ended December 31, 2025 2,174 Estimated for year ended December 31, 2026 2,038 Estimated for year ended December 31, 2027 2,038 Thereafter 31,767 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Components of Inventory | Inventories, net consisted of the following: December 31, 2022 2021 2020 (Amounts in thousands) Raw materials $ 360,039 $ 318,348 321,600 Work in process 295,678 242,143 210,174 Finished goods 245,494 213,096 221,532 Less: Excess and obsolete reserve (98,013) (95,300) (86,078) Inventories, net $ 803,198 $ 678,287 $ 667,228 |
Stock-Based Compensation Plans
Stock-Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-Based Compensation | We recorded stock-based compensation for Restricted Shares as follows: Year Ended December 31, 2022 2021 2020 (Amounts in millions) Stock-based compensation expense $ 25.5 $ 29.5 $ 27.3 Related income tax benefit (5.8) (6.7) (6.2) Net stock-based compensation expense $ 19.7 $ 22.8 $ 21.1 |
Information Regarding Restricted Shares | The following table summarizes information regarding Restricted Shares: Year Ended December 31, 2022 Shares Weighted Average Number of unvested Restricted Shares: Outstanding — beginning of year 1,671,011 $ 43.06 Granted 982,654 32.91 Vested (549,129) 42.85 Canceled (406,757) 43.41 Outstanding — end of year 1,697,779 $ 37.17 |
Derivatives and Hedging Activ_2
Derivatives and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Fair Value of Forward Exchange Contracts not Designated as Hedging Instruments | The fair values of foreign exchange contracts are summarized below: Year Ended December 31, 2022 2021 (Amounts in thousands) Current derivative assets $ 2,207 $ 740 Noncurrent derivative assets 66 2 Current derivative liabilities 4,422 2,924 Noncurrent derivative liabilities 63 82 |
Impact of Net Changes in Fair Values of Forward Exchange Contracts Not Designated as Hedging Instruments | The impact of net changes in the fair values of foreign exchange contracts are summarized below: Year Ended December 31, 2022 2021 2020 (Amounts in thousands) Gains (losses) recognized in income $ (6,173) $ 3,295 $ (10,294) |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The fair values of our cross-currency swaps are summarized below: Year Ended December 31, 2022 2021 (Amounts in thousands) Other assets, net $ — $ 23,129 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | The cumulative net investment hedge (gain) loss, net of deferred taxes, under cross-currency swaps recorded in AOCL on our consolidated balance sheets are summarized below: Year Ended December 31, 2022 2021 2020 (Amounts in thousands) (Gain) loss-included component (1) $ (37,135) $ (15,578) $ 6,067 (Gain) loss-excluded component (2) (11,875) (2,111) 7,769 (Gain) loss recognized in AOCL $ (49,010) $ (17,689) $ 13,836 _____________________________________________ (1) Change in the fair value of the swaps attributable to changes in spot rates. (2) Change in the fair value of the swaps due to changes other than those attributable to spot rates. Prior to the dedesignation, the cumulative impact recorded in AOCL on our consolidated balance sheets from the change in carrying value due to the remeasurement of the effective portion of the net investment hedge are summarized below: Year Ended December 31, 2022 2021 2020 (Amounts in thousands) Loss recorded in AOCL $ — $ (29,554) $ (34,973) |
Details of Certain Consolidat_2
Details of Certain Consolidated Balance Sheet Captions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Details of Certain Consolidated Balance Sheet Captions [Abstract] | |
Accounts Receivable, net | Accounts receivable, net were: December 31, 2022 2021 (Amounts in thousands) Trade accounts receivables $ 919,045 $ 770,280 Less: allowance for expected credit losses (66,444) (55,264) Other short-term receivables 32,649 43,266 Less: allowance for expected credit losses (16,618) (19,072) Accounts receivable, net $ 868,632 $ 739,210 |
Property, Plant and Equipment, net | Property, plant and equipment, net were: December 31, 2022 2021 (Amounts in thousands) Land $ 60,669 $ 62,613 Buildings and improvements 425,019 441,627 Machinery, equipment and tooling 750,933 751,944 Software, furniture and fixtures and other 437,280 451,566 Gross property, plant and equipment 1,673,901 1,707,750 Less: accumulated depreciation (1,172,956) (1,191,823) Property, plant and equipment, net $ 500,945 $ 515,927 |
Accrued Liabilities | Accrued liabilities were: December 31, 2022 2021 (Amounts in thousands) Wages, compensation and other benefits $ 175,898 $ 204,347 Commissions and royalties 18,526 21,911 Warranty costs and late delivery penalties 21,850 23,741 Sales and use tax 29,092 20,782 Income tax 32,968 47,186 Other 149,244 127,125 Accrued liabilities $ 427,578 $ 445,092 |
Retirement Obligations and Other Liabilities | Retirement obligations and other liabilities were: December 31, 2022 2021 (Amounts in thousands) Pension and postretirement benefits $ 142,204 $ 188,999 Deferred taxes 7,901 9,169 Legal and environmental 90,207 86,561 Uncertain tax positions and other tax liabilities 37,604 37,013 Other 31,613 30,320 Retirement obligations and other liabilities $ 309,529 $ 352,062 |
Debt and Finance Lease Obliga_2
Debt and Finance Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt Including Finance Lease Obligations | Debt, including finance lease obligations, consisted of: December 31, 2022 2021 (Amounts in thousands) 3.50% USD Senior Notes due October 1, 2030, net of unamortized discount and debt issuance costs of $5,055 and $5,611 at December 31, 2022 and 2021, respectively 494,945 494,389 2.80% USD Senior Notes due January 15, 2032, net of unamortized discount and debt issuance costs of $5,727 and $6,273 at December 31, 2022 and 2021, respectively 494,273 493,727 Term Loan Facility, interest rate of 5.98% and 1.45%, net of debt issuance costs of $444 and $639 at December 31, 2022 and 2021, respectively 259,556 291,861 Finance lease obligations and other borrowings 24,712 22,851 Debt and finance lease obligations 1,273,486 1,302,828 Less amounts due within one year 49,335 41,058 Total debt due after one year $ 1,224,151 $ 1,261,770 |
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): Term Loan Senior Notes and other debt Total (Amounts in thousands) 2023 $ 39,830 $ 9,335 $ 49,165 2024 59,863 15,377 75,240 2025 59,905 — 59,905 2026 99,958 — 99,958 2027 — — — Thereafter — 989,218 989,218 Total $ 259,556 $ 1,013,930 $ 1,273,486 |
Pension and Postretirement Be_2
Pension and Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 2021 2020 Weighted average assumptions used to determine Benefit Obligations: Discount rate 5.73 % 3.00 % 2.62 % Rate of increase in compensation levels 3.50 3.50 3.63 Weighted average assumptions used to determine net pension expense: Long-term rate of return on assets 5.75 % 6.00 % 6.00 % Discount rate 3.00 2.62 3.41 Rate of increase in compensation levels 3.50 3.50 3.56 Weighted-average interest crediting rates 3.79 % 3.79 % 3.79 % The following are assumptions related to the non-U.S. defined benefit pension plans: Year Ended December 31, 2022 2021 2020 Weighted average assumptions used to determine Benefit Obligations: Discount rate 4.46 % 1.71 % 1.23 % Rate of increase in compensation levels 3.61 3.18 3.11 Weighted average assumptions used to determine net pension expense: Long-term rate of return on assets 2.43 % 2.37 % 2.37 % Discount rate 1.71 1.23 1.61 Rate of increase in compensation levels 3.18 3.11 3.12 Weighted-average interest crediting rates 1.49 % 1.41 % 1.00 % The following are assumptions related to postretirement benefits: Year Ended December 31, 2022 2021 2020 Weighted average assumptions used to determine Benefit Obligation: Discount rate 5.83 % 2.83 % 2.32 % Weighted average assumptions used to determine net expense: Discount rate 2.83 % 2.32 % 3.27 % |
Components of Net Periodic Cost for Pension and Postretirement Benefits | Net pension expense for the U.S. defined benefit pension plans (including both qualified and non-qualified plans) was: Year Ended December 31, 2022 2021 2020 (Amounts in thousands) Service cost $ 24,680 $ 25,162 $ 25,893 Interest cost 13,157 11,952 15,100 Expected return on plan assets (25,345) (25,377) (25,794) Settlement (gain) loss — — 128 Amortization of unrecognized prior service cost 175 188 184 Amortization of unrecognized net loss 3,461 7,725 6,977 U.S. net pension expense $ 16,128 $ 19,650 $ 22,488 Net pension expense for non-U.S. defined benefit pension plans was: Year Ended December 31, 2022 2021 2020 (Amounts in thousands) Service cost $ 5,984 $ 7,336 $ 7,052 Interest cost 6,506 5,544 6,572 Expected return on plan assets (5,883) (6,204) (5,018) Amortization of unrecognized net loss 2,729 4,509 4,315 Amortization of unrecognized prior service cost 293 300 262 Settlement loss and other (75) 640 708 Non-U.S. net pension expense $ 9,554 $ 12,125 $ 13,891 Net postretirement benefit cost for postretirement medical plans was: Year Ended December 31, 2022 2021 2020 (Amounts in thousands) Interest cost $ 464 $ 399 $ 596 Amortization of unrecognized prior service cost 122 122 122 Amortization of unrecognized net (gain) loss 192 (21) (132) Net postretirement benefit expense $ 778 $ 500 $ 586 |
Schedule of Funded Status | The following summarizes the net pension (liability) asset for U.S. plans: December 31, 2022 2021 (Amounts in thousands) Plan assets, at fair value $ 365,044 $ 488,281 Benefit Obligation (382,959) (471,825) Funded status $ (17,915) $ 16,456 The following summarizes the net pension liability for non-U.S. plans: December 31, 2022 2021 (Amounts in thousands) Plan assets, at fair value $ 172,276 $ 275,941 Benefit Obligation (268,364) (420,809) Funded status - Underfunded $ (96,088) $ (144,868) The following summarizes the accrued postretirement benefits liability for the postretirement medical plans: December 31, 2022 2021 (Amounts in thousands) Postretirement Benefit Obligation $ 13,353 $ 17,021 Funded status $ (13,353) $ (17,021) |
Schedule of Amounts Recognized in Balance Sheet | The following summarizes amounts recognized in the balance sheet for U.S. plans: December 31, 2022 2021 (Amounts in thousands) Noncurrent assets $ — $ 22,398 Current liabilities (232) (170) Noncurrent liabilities (17,683) (5,772) Funded status $ (17,915) $ 16,456 The following summarizes amounts recognized in the balance sheet for non-U.S. plans: December 31, 2022 2021 (Amounts in thousands) Noncurrent assets $ 15,305 $ 22,655 Current liabilities (6,877) (7,205) Noncurrent liabilities (104,516) (160,318) Funded status $ (96,088) $ (144,868) The following summarizes amounts recognized in the balance sheet for postretirement Benefit Obligation: December 31, 2022 2021 (Amounts in thousands) Current liabilities $ (2,086) $ (2,239) Noncurrent liabilities (11,267) (14,782) Funded status $ (13,353) $ (17,021) |
Schedule of Benefit Obligations and Accumulated Benefit Obligations | The following is a summary of the changes in the U.S. defined benefit plans’ pension obligations: December 31, 2022 2021 (Amounts in thousands) Balance — January 1 $ 471,825 $ 487,418 Service cost 24,680 25,162 Interest cost 13,157 11,952 Plan amendments and settlements 179 — Actuarial (gain) loss (1) (87,791) (11,208) Benefits paid (39,091) (41,499) Balance — December 31 $ 382,959 $ 471,825 Accumulated benefit obligations at December 31 $ 382,488 $ 471,024 _______________________________________ (1) The actuarial gains in 2022 and 2021 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, 2022 2021 (Amounts in thousands) Balance — January 1 $ 420,809 $ 469,998 Service cost 5,984 7,336 Interest cost 6,506 5,544 Employee contributions 71 74 Settlements and other (7,944) (3,140) Actuarial gains(1) (108,546) (24,493) Net benefits and expenses paid (15,797) (17,316) Currency translation impact(2) (32,719) (17,194) Balance — December 31 $ 268,364 $ 420,809 Accumulated benefit obligations at December 31 $ 253,428 $ 399,757 _______________________________________ (1) Actuarial gains primarily reflects the impact of changes in the discount rates for all plans. (2) In 2022 and 2021, the currency translation gains reflects the strengthening of the U.S. dollar against the Euro and the British pound. The following is a reconciliation of the postretirement Benefit Obligation: December 31, 2022 2021 (Amounts in thousands) Balance — January 1 $ 17,021 $ 18,648 Interest cost 464 399 Employee contributions 792 874 Medicare subsidies receivable — 67 Actuarial (gain) loss (1,747) 1,225 Net benefits and expenses paid (3,177) (4,192) Balance — December 31 $ 13,353 $ 17,021 |
Schedule of Expected Cash Activity | The following table summarizes the expected cash benefit payments for the U.S. defined benefit pension plans in the future (amounts in millions): 2023 $ 40.6 2024 39.1 2025 40.0 2026 40.4 2027 40.0 2028-2032 194.1 The following table summarizes the expected cash benefit payments for the non-U.S. defined benefit plans in the future (amounts in millions): 2023 $ 15.1 2024 15.8 2025 16.5 2026 17.1 2027 18.0 2028-2032 91.9 The following presents expected benefit payments for future periods (amounts in millions): Expected 2023 $ 2.1 2024 1.9 2025 1.8 2026 1.6 2027 1.5 2028-2032 5.3 |
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 U.S. plans, net of tax: December 31, 2022 2021 (Amounts in thousands) Balance — January 1 $ (30,014) $ (49,321) Amortization of net loss 2,647 5,907 Amortization of prior service cost 134 144 Net gain (loss) arising during the year (17,085) 13,256 Prior service cost arising during the year (137) — Balance — December 31 $ (44,455) $ (30,014) Amounts recorded in accumulated other comprehensive loss consist of: December 31, 2022 2021 (Amounts in thousands) Unrecognized net loss $ (43,725) $ (29,344) Unrecognized prior service cost (730) (670) Accumulated other comprehensive loss, net of tax $ (44,455) $ (30,014) 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, 2022 2021 (Amounts in thousands) Balance — January 1 $ (70,581) $ (97,246) Amortization of net loss 2,450 4,207 Net gains arising during the year 21,099 17,995 Settlement losses 130 616 Prior service cost arising during the year (233) — Currency translation impact and other 4,714 3,847 Balance — December 31 $ (42,421) $ (70,581) Amounts recorded in accumulated other comprehensive loss consist of: December 31, 2022 2021 (Amounts in thousands) Unrecognized net loss $ (39,007) $ (67,192) Unrecognized prior service cost (3,414) (3,389) Accumulated other comprehensive loss, net of tax $ (42,421) $ (70,581) 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: 2022 2021 (Amounts in thousands) Balance — January 1 $ (2,072) $ (1,213) Amortization of net (gain) loss 147 (16) Amortization of prior service cost 93 94 Net gain (loss) arising during the year 1,336 (937) Balance — December 31 $ (496) $ (2,072) Amounts recorded in accumulated other comprehensive loss consist of: December 31, 2022 2021 (Amounts in thousands) Unrecognized net gain (loss) $ 55 $ (1,420) Unrecognized prior service cost (551) (652) Accumulated other comprehensive income, net of tax $ (496) $ (2,072) |
Reconciliation of Plan Assets | The following is a reconciliation of the U.S. defined benefit pension plans’ assets: December 31, 2022 2021 (Amounts in thousands) Balance — January 1 $ 488,281 $ 477,680 Gain (loss) on plan assets (84,785) 31,501 Company contributions 639 20,599 Benefits paid (39,091) (41,499) Balance — December 31 $ 365,044 $ 488,281 The following is a reconciliation of the non-U.S. plans’ defined benefit pension assets: December 31, 2022 2021 (Amounts in thousands) Balance — January 1 $ 275,941 $ 287,308 Return on plan assets (71,104) 1,631 Employee contributions 71 74 Company contributions 15,657 11,964 Settlements (8,039) (3,096) Currency translation impact (24,453) (4,624) Net benefits and expenses paid (15,797) (17,316) Balance — December 31 $ 172,276 $ 275,941 |
Allocation of Plan Assets | The asset allocations for the qualified plan at the end of 2022 and 2021 by asset category, are as follows: Target Allocation Percentage of Actual Plan Assets at December 31, Asset category 2022 2021 2022 2021 Cash and cash equivalents 1 % 1 % 1 % 1 % Cash and cash equivalents 1 % 1 % 1 % 1 % Global Equity 20 % 27 % 21 % 26 % Global Real Assets 14 % 15 % 13 % 16 % Equity securities 34 % 42 % 34 % 42 % Diversified Credit 14 % 15 % 18 % 15 % Liability-Driven Investment 51 % 42 % 47 % 42 % Fixed income 65 % 57 % 65 % 57 % 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, 2022 At December 31, 2021 Hierarchical Levels Hierarchical Levels Total I II III Total I II III (Amounts in thousands) (Amounts in thousands) Cash and cash equivalents $ 4,072 $ 4,072 $ — $ — $ 6,192 $ 6,192 $ — $ — Commingled Funds: Equity securities Global Equity(a) 77,217 — 77,217 — 128,269 — 128,269 — Global Real Assets(b) 46,476 — 46,476 — 79,089 — 79,089 — Fixed income securities Diversified Credit(c) 64,877 — 64,877 — 71,100 — 71,100 — Liability-Driven Investment(d) 172,402 — 172,402 — 203,631 — 203,631 — $ 365,044 $ 4,072 $ 360,972 $ — $ 488,281 $ 6,192 $ 482,089 $ — _______________________________________ (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 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. The asset allocations for the non-U.S. defined benefit pension plans at the end of 2022 and 2021 are as follows: Target Allocation at Percentage of Actual Plan Asset category 2022 2021 2022 2021 Cash and cash equivalents 1 % — % 1 % — % Cash and cash equivalents 1 % — % 1 % — % North American Companies — % 1 % — % 1 % Global Equity — % 1 % — % 1 % Equity securities — % 2 % — % 2 % U.K. Government Gilt Index 38 % 42 % 38 % 42 % Liability-Driven Investment 12 % 9 % 12 % 9 % Fixed income 50 % 51 % 50 % 51 % Multi-asset 20 % 20 % 20 % 20 % Buy-in Contracts 19 % 20 % 19 % 20 % Other 10 % 7 % 10 % 7 % Other types 49 % 47 % 49 % 47 % The fair values of the non-U.S. assets were: At December 31, 2022 At December 31, 2021 Hierarchical Levels Hierarchical Levels Total I II III Total I II III (Amounts in thousands) (Amounts in thousands) Cash $ 2,134 $ 2,134 $ — — $ 2,264 $ 2,264 $ — $ — Commingled Funds: Equity securities North American Companies(a) — — — — 2,609 — 2,609 — Global Equity(b) — — — — 2,516 — 2,516 — Fixed income securities U.K. Government Gilt Index(c) 65,650 — 65,650 — 115,450 — 115,450 — Liability-Driven Investment(d) 20,849 — 20,849 — 25,387 — 25,387 — Other Types of Investments: Multi-asset(e) 34,268 — 34,268 — 54,824 — 54,824 — Buy-in Contracts(f) 32,313 — — 32,313 54,896 — — 54,896 Other(g) 17,062 — — 17,062 17,995 — — 17,995 $ 172,276 $ 2,134 $ 120,767 $ 49,375 $ 275,941 $ 2,264 $ 200,786 $ 72,891 _______________________________________ (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 accrue d 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, 2022 was $24.3 million, with contributions and currency adjustments resulting in a fair value of $15.7 million at December 31, 2022. Similarly, the fair value of asset held in the U.K. plan Contract as of January 1, 2022 was $30.6 million, with contributions and currency adjustments resulting in a fair value of $16.6 million at December 31, 2022. |
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, 2022 2021 (Amounts in thousands) Benefit Obligation $ 529,531 $ 230,688 Accumulated benefit obligation 519,287 215,535 Fair value of plan assets 401,285 59,232 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Calculation of Net Earnings Per Common Share and Weighted Average Common Share Outstanding | The following is a reconciliation of net earnings of Flowserve Corporation and weighted average shares for calculating net earnings per common share. Earnings per weighted average common share outstanding was calculated as follows: Year Ended December 31, 2022 2021 2020 (Amounts in thousands, except per share data) Net earnings of Flowserve Corporation $ 188,689 $ 125,949 $ 130,420 Dividends on restricted shares not expected to vest — — — Earnings attributable to common and participating shareholders $ 188,689 $ 125,949 $ 130,420 Weighted average shares: Common stock 130,591 130,277 130,373 Participating securities 39 28 22 Denominator for basic earnings per common share 130,630 130,305 130,395 Effect of potentially dilutive securities 685 552 655 Denominator for diluted earnings per common share 131,315 130,857 131,050 Net earnings per share attributable to Flowserve Corporation common shareholders: Basic $ 1.44 $ 0.97 $ 1.00 Diluted 1.44 0.96 1.00 |
Legal Matters and Contingenci_2
Legal Matters and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Loss Contingencies by Contingency | Activity related to asbestos claims during the periods indicated was as follow s : 2022 2021 2020 Beginning claims, January 1,(1) 8,712 8,366 8,345 New claims 2,454 2,482 2,140 Resolved claims (2,204) (2,211) (2,203) Other(2) (823) 75 84 Ending claims, December 31,(1) 8,139 8,712 8,366 ____________________ (1) Beginning and ending claims data in each period excludes inactive claims, as the Company considers it unlikely that inactive cases will be pursued further by the respective plaintiffs. A claim is classified as inactive either due to inactivity over a period of time or if designated as inactive by the applicable court. (2) Represents the net change in claims as a result of the reclassification of active cases as inactive and inactive cases as active during the period indicated. Cases moved from active to inactive status are removed from the claims count without being accounted for as a "Resolved claim", and cases moved from inactive status to active status are added back to the claims count without being accounted for as a “New claim”. |
Changes in Estimated Asbestos Liability | The following table presents the changes in the estimated asbestos liability as of December 31, 2022, 2021 and 2020: (Amounts in thousands) 2022 2021 2020 Beginning balance, January 1, $ 94,423 $ 99,530 $ 97,979 Asbestos liability adjustments, net 14,782 4,783 8,642 Cash payment activity (5,733) (7,521) (8,445) Other, net (4,820) (2,369) 1,354 Ending balance, December 31, $ 98,652 $ 94,423 $ 99,530 |
Warranty Reserve (Tables)
Warranty Reserve (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Activity in the Warranty Reserve | The following is a summary of the activity in the warranty reserve: Year Ended December 31, 2022 2021 2020 (Amounts in thousands) Balance — January 1 $ 23,893 $ 27,944 $ 30,854 Accruals for warranty expense, net of adjustments 17,342 19,179 21,701 Settlements made (19,188) (23,230) (24,611) Balance — December 31 $ 22,047 $ 23,893 $ 27,944 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Dividends Declared | Dividends declared per share were as follows: Year Ended December 31, 2022 2021 2020 Dividends declared per share $ 0.80 $ 0.80 $ 0.80 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision (benefit) for income taxes consists of the following: Year Ended December 31, 2022 2021 2020 (Amounts in thousands) Current: U.S. federal $ 45,130 $ 66,486 $ 40,234 Foreign 40,876 29,987 42,487 State and local 6,177 1,478 5,894 Total current provision (benefit) 92,183 97,951 88,615 Deferred: U.S. federal (88,498) (92,021) (50,038) Foreign (42,756) (4,339) 26,742 State and local (4,568) (4,185) (3,902) Total deferred provision (benefit) (135,822) (100,545) (27,198) Total provision (benefit) $ (43,639) $ (2,594) $ 61,417 |
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, 2022 2021 2020 (Amounts in millions) Statutory federal income tax at 21% $ 32.4 $ 28.1 $ 39.2 Base Erosion and Anti-abuse Tax (7.6) 7.6 — Foreign impact, net (22.3) (158.0) 0.1 Change in valuation allowances (50.5) 146.6 26.9 State and local income taxes, net 1.6 (2.7) 2.0 Reversal of deferred tax liabilities following legal entity reorganizations — (22.6) — Research and development credit (1.0) (3.6) (5.2) Non-deductible items 2.3 4.4 1.8 U.S. federal tax return to accrual adjustments, not separately disclosed in other categories 1.8 (0.8) (1.6) Recognition of compensation costs related to restricted shares 2.4 (1.3) 1.0 Intercompany profit in inventory (2.0) (0.3) 0.3 Other, net (0.7) — (3.1) Total (43.6) (2.6) 61.4 Effective tax rate (28.3) % (1.9) % 30.4 % |
Schedule of Deferred Tax Assets and Liabilities | Significant components of the consolidated deferred tax assets and liabilities were: December 31, 2022 2021 (Amounts in thousands) Deferred tax assets related to: Net operating loss carryforwards $ 183,541 $ 200,196 Credit and capital loss carryforwards 197,774 185,832 Warranty and accrued liabilities 49,302 26,116 Section 59(e) capitalized expenses 54,486 43,434 Other 168,933 161,418 Total deferred tax assets 654,036 616,996 Valuation allowances (356,557) (415,962) Net deferred tax assets $ 297,479 $ 201,034 Deferred tax liabilities related to: Goodwill and intangibles $ (123,088) $ (123,133) Foreign undistributed earnings (11,154) (15,529) Operating lease right-of-use-assets (20,453) (25,556) Other (1,395) (1,936) Total deferred tax liabilities (156,090) (166,154) Deferred tax asset (liabilities), net $ 141,389 $ 34,880 |
Schedule of Deferred Tax Asset Valuation Allowance | The following schedule presents the changes in deferred tax asset valuation allowance as follows: (Amounts in thousands) Balance at Additions Additions charged to other accounts - currency effects and other, net Deductions from reserve Balance at end of year Year Ended December 31, 2022 Deferred tax asset valuation allowance(1): $ 415,962 $ 36,822 $ (11,775) $ (84,452) $ 356,557 Year Ended December 31, 2021 Deferred tax asset valuation allowance(1): 287,410 178,203 (15,572) (34,079) 415,962 Year Ended December 31, 2020 Deferred tax asset valuation allowance(1): 266,414 49,950 (529) (28,425) 287,410 ______________________________ (1) Deductions from reserve result from the release of valuation allowances on deferred tax assets, expiration or utilization of net operating losses and foreign tax credits previously reserved. Additions to reserve result from the establishment of valuation allowances on deferred tax assets, generation of net operating losses and foreign tax credits. |
Schedule of Earnings Before Income Tax | Earnings before income taxes comprised: Year Ended December 31, 2022 2021 2020 (Amounts in thousands) U.S. $ 63,508 $ (52,915) $ 73,109 Foreign 90,868 186,504 129,183 Total $ 154,376 $ 133,589 $ 202,292 |
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): 2022 2021 2020 Balance — January 1 $ 49.9 $ 54.8 $ 40.6 Gross amount of increase (decrease) in unrecognized tax benefits resulting from tax positions taken: During a prior year 5.4 8.0 3.8 During the current period 5.8 4.5 11.1 Decreases in unrecognized tax benefits relating to: Settlements with taxing authorities (5.5) (10.2) (0.2) Lapse of the applicable statute of limitations (4.1) (5.1) (2.5) Increase (decrease) in unrecognized tax benefits relating to foreign currency translation adjustments (1.3) (2.1) 2.0 Balance — December 31 $ 50.2 $ 49.9 $ 54.8 |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022, 2021 and 2020 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, 2022: Sales to external customers $2,518,000 $ 1,097,120 $ 3,615,120 $ — $ 3,615,120 Intersegment sales 4,508 3,489 7,997 (7,997) — Segment operating income (loss) 207,957 113,417 321,374 (124,155) 197,219 Depreciation and amortization 49,654 18,931 68,585 22,368 90,953 Identifiable assets 3,110,733 1,269,690 4,380,423 410,211 4,790,634 Capital expenditures 34,295 17,178 51,473 24,814 76,287 Subtotal—Reportable Segments Eliminations and All Other Consolidated Total FPD FCD (Amounts in thousands) Year Ended December 31, 2021: Sales to external customers $2,468,098 $ 1,072,962 $ 3,541,060 $ — $ 3,541,060 Intersegment sales 2,750 2,924 5,674 (5,674) — Segment operating income (loss) 243,203 119,651 362,854 (92,095) 270,759 Depreciation and amortization 51,094 21,286 72,380 27,442 99,822 Identifiable assets 2,927,346 1,223,316 4,150,662 599,106 4,749,768 Capital expenditures 21,575 12,283 33,858 21,078 54,936 Subtotal—Reportable Segments Eliminations and All Other Consolidated Total FPD FCD (Amounts in thousands) Year Ended December 31, 2020: Sales to external customers $ 2,673,705 $ 1,054,429 $ 3,728,134 $ — $ 3,728,134 Intersegment sales 1,965 3,120 5,085 (5,085) — Segment operating income (loss) 270,960 125,573 396,533 (146,256) 250,277 Depreciation and amortization 52,390 21,949 74,339 26,414 100,753 Identifiable assets 3,039,069 1,308,136 4,347,205 967,472 5,314,677 Capital expenditures 21,714 14,043 35,757 21,648 57,405 |
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, 2022 Sales Percentage Long-Lived Percentage (Amounts in thousands, except percentages) United States $ 1,536,961 42.5 % $ 412,896 46.6 % EMA(1) 1,210,436 33.5 % 274,511 30.9 % Asia(2) 524,952 14.5 % 144,206 16.2 % Other(3) 342,771 9.5 % 56,132 6.3 % Consolidated total $ 3,615,120 100.0 % $ 887,745 100.0 % Year Ended December 31, 2021 Sales Percentage Long-Lived Percentage (Amounts in thousands, except percentages) United States $ 1,376,771 38.9 % $ 476,176 49.2 % EMA(1) 1,270,326 35.9 % 298,426 30.8 % Asia(2) 557,314 15.7 % 141,810 14.6 % Other(3) 336,649 9.5 % 51,688 5.4 % Consolidated total $ 3,541,060 100.0 % $ 968,100 100.0 % Year Ended December 31, 2020 Sales Percentage Long-Lived Percentage (Amounts in thousands, except percentages) United States $ 1,463,680 39.3 % $ 455,622 46.2 % EMA(1) 1,385,245 37.2 % 336,577 34.1 % Asia(2) 535,440 14.4 % 138,947 14.1 % Other(3) 343,769 9.1 % 55,278 5.6 % Consolidated total $ 3,728,134 100.0 % $ 986,424 100.0 % ___________________________________ (1) "EMA " includes Europe, the Middle East and Africa. U. K. accounted for approximate ly 10% f or 2022, 10% for 2021 and 9% for 2020, of consolidated long-lived assets. No other individual country within t his group represents 10% or more of consolidated totals for any period presented. (2) "Asia" includes Asia and Austral ia. No individual country wi thin this group represents 10% or more of consolidated totals for any period presented. (3) "Other" includes Canada and Latin Am erica. 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, 2022 | |
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: 2022 2021 (Amounts in thousands) Foreign currency translation items(1) Pension and other post-retirement effects Cash flow hedging activity (2) Total(1) Foreign currency translation items(1) Pension and other post-retirement effects Cash flow hedging activity (2) Total(1) Balance - January 1 $ (456,025) $ (101,665) $ (1,336) $ (559,026) $ (456,549) $ (146,723) $ (488) $ (603,760) Other comprehensive income (loss) before reclassifications (3) (98,658) 16,684 314 (81,660) 524 34,960 — 35,484 Amounts — (1,375) 89 (1,286) — 10,098 (848) 9,250 Net current-period other comprehensive income (loss) (3) (98,658) 15,309 403 (82,946) 524 45,058 (848) 44,734 Balance - December 31 $ (554,683) $ (86,356) $ (933) $ (641,972) $ (456,025) $ (101,665) $ (1,336) $ (559,026) _______________________________________ (1) Includes foreign currency translation adjustments attributable to noncontrolling interests of $5.8 million, $4.6 million and $5.9 million for December 31, 2022, 2021 and 2020, respectively. Also includes the cumulative impacts from the changes in fair value of our cross-currency swaps, which were $49.0 million, $17.7 million and $(13.8) million for December 31, 2022, 2021 and 2020, respectively. (2) Other comprehensive loss before reclassifications and amounts reclassified from AOCL to interest expense related to designated cash flow hedges. (3) Amounts in parentheses indicate an increase to AOCL. |
Reclassifications 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 2022(1) 2021(1) Pension and other postretirement effects Amortization of actuarial losses(2) Other income (expense), net $ (6,382) $ (12,213) Prior service costs(2) Other income (expense), net (591) (610) Settlements and other(2) Other income (expense), net (75) (640) Tax benefit (expense) 8,423 3,365 Net of tax $ 1,375 $ (10,098) Cash flow hedging activity Amortization of Treasury rate lock Interest income (expense) $ (117) $ 848 Tax benefit (expense) 28 — Net of tax $ (89) $ 848 ______________________________________ (1) Amounts in parentheses indicate decreases to income. None of the reclassification amounts have a noncontrolling interest component. (2) These AOCL 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, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | December 31, 2022 (Amounts in thousands) FPD FCD Subtotal–Reportable Segments All Other Consolidated Total Restructuring Charges COS $ 768 $ 93 $ 861 $ — $ 861 SG&A — (4) (4) — (4) $ 768 $ 89 $ 857 $ — $ 857 Non-Restructuring Charges COS $ (530) $ 86 $ (444) $ (61) $ (505) SG&A 148 (391) (243) (274) (517) $ (382) $ (305) $ (687) $ (335) $ (1,022) Total Realignment Charges COS $ 238 $ 179 $ 417 $ (61) $ 356 SG&A 148 (395) (247) (274) (521) Total $ 386 $ (216) $ 170 $ (335) $ (165) December 31, 2021 (Amounts in thousands) FPD FCD Subtotal–Reportable Segments All Other Consolidated Total Restructuring Charges COS $ 8,046 $ 811 $ 8,857 $ — $ 8,857 SG&A 665 (9) 656 — 656 $ 8,711 $ 802 $ 9,513 $ — $ 9,513 Non-Restructuring Charges COS $ 6,203 $ 1,196 $ 7,399 $ 590 $ 7,989 SG&A 368 708 1,076 3,913 4,989 $ 6,571 $ 1,904 $ 8,475 $ 4,503 $ 12,978 Total Realignment and Transformation Charges COS $ 14,249 $ 2,007 $ 16,256 $ 590 $ 16,846 SG&A 1,033 699 1,732 3,913 5,645 Total $ 15,282 $ 2,706 $ 17,988 $ 4,503 $ 22,491 The following is a summary of total inception to date charges, net of adjustments, related to the Realignment Program: Inception to Date (Amounts in thousands) FPD FCD Subtotal–Reportable Segments All Other Consolidated Total Restructuring Charges COS $ 26,642 $ 2,131 $ 28,773 $ — $ 28,773 SG&A 716 328 1,044 (16) 1,028 $ 27,358 $ 2,459 $ 29,817 $ (16) $ 29,801 Non-Restructuring Charges COS $ 24,877 $ 808 $ 25,685 $ 581 $ 26,266 SG&A 11,197 4,871 16,068 21,521 37,589 $ 36,074 $ 5,679 $ 41,753 $ 22,102 $ 63,855 Total Realignment Charges COS $ 51,519 $ 2,939 $ 54,458 $ 581 $ 55,039 SG&A 11,913 5,199 17,112 21,505 38,617 Total $ 63,432 $ 8,138 $ 71,570 $ 22,086 $ 93,656 Restructuring charges represent costs related to employee severance at closed facilities, contract termination costs, asset write-downs and other costs. Contract termination costs include costs related to the termination of operating leases or other contract termination costs. Asset write-downs include accelerated depreciation of fixed assets, accelerated amortization of intangible assets, divestiture of certain non-strategic assets and inventory write-downs. Other costs generally include costs related to employee relocation, asset relocation, vacant facility costs (i.e., taxes and insurance) and other charges. The following is a summary of restructuring charges, net of adjustments, for our restructuring activities. Restructuring charges incurred related to our Realignment Program: December 31, 2022 (Amounts in thousands) Severance Contract Termination Asset Write-Downs Other Total COS $ 122 $ 327 $ 273 $ 139 $ 861 SG&A (4) — — — (4) Total $ 118 $ 327 $ 273 $ 139 $ 857 December 31, 2021 (Amounts in thousands) Severance Contract Termination Asset Write-Downs Other Total COS $ 964 $ 34 $ 2,683 $ 5,176 $ 8,857 SG&A 167 — — 489 656 Total $ 1,131 $ 34 $ 2,683 $ 5,665 $ 9,513 The following is a summary of total inception to date charges, net of adjustments, related to our Realignment Program: Inception to Date (Amounts in thousands) Severance Contract Termination Asset Write-Downs Other Total COS $ 16,324 $ 413 $ 4,368 $ 7,668 $ 28,773 SG&A 247 — 14 767 1,028 Total $ 16,571 $ 413 $ 4,382 $ 8,435 $ 29,801 |
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, 2022 and 2021: (Amounts in thousands) 2022 2021 Balance at January 1, $ 4,868 $ 18,255 Charges 584 6,829 Cash expenditures (3,518) (18,942) Other non-cash adjustments, including currency (969) (1,274) Balance at December 31, $ 965 $ 4,868 |
Significant Accounting Polici_4
Significant Accounting Policies and Accounting Developments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Feb. 09, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Aug. 31, 2021 | Dec. 31, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Sales | $ 3,615,120 | $ 3,541,060 | $ 3,728,134 | |||||
Cash and cash equivalents | $ 434,971 | 434,971 | 658,452 | 1,095,274 | $ 670,980 | |||
Accounts receivable, net | 868,632 | 868,632 | 739,210 | |||||
Retirement obligations and other liabilities | 309,529 | 309,529 | 352,062 | |||||
Retained earnings | 3,774,209 | 3,774,209 | 3,691,023 | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (647,788) | $ (647,788) | (563,589) | |||||
Interest ownership for cost method accounting (percentage) | 20% | |||||||
Loss accrual | 98,700 | $ 98,700 | ||||||
Insurance receivables | 42,500 | $ 42,500 | ||||||
Warranty obligations sales trend period (in months) | 24 months | |||||||
Research and Development [Abstract] | ||||||||
Research and development costs | $ 39,900 | 34,200 | 36,100 | |||||
Goodwill | 1,168,124 | 1,168,124 | 1,196,479 | 1,224,886 | ||||
Subsequent Event | Velan Inc. | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Cash payment for acquisition | $ 245,000 | |||||||
Sales | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Revenue from contract with customer reserve for estimated exit costs before tax | (9,330) | |||||||
Cost of sales ("COS") | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Revenue from contract with customer reserve for estimated exit costs before tax | 8,860 | |||||||
Gross loss | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Revenue from contract with customer reserve for estimated exit costs before tax | (18,190) | |||||||
Selling, general and administrative expense ("SG&A") | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Revenue from contract with customer reserve for estimated exit costs before tax | 15,697 | |||||||
Operating loss | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Revenue from contract with customer reserve for estimated exit costs before tax | (33,887) | |||||||
FPD | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Sales | 2,518,000 | 2,468,098 | 2,673,705 | |||||
Research and Development [Abstract] | ||||||||
Goodwill | 772,273 | 772,273 | 787,213 | 805,055 | ||||
FCD | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Sales | 1,097,120 | 1,072,962 | 1,054,429 | |||||
Research and Development [Abstract] | ||||||||
Goodwill | 395,851 | 395,851 | 409,266 | 419,831 | ||||
Operating Segments | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Sales | 3,615,120 | 3,541,060 | $ 3,728,134 | |||||
Operating Segments | FPD | Sales | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Revenue from contract with customer reserve for estimated exit costs before tax | (9,330) | |||||||
Operating Segments | FPD | Cost of sales ("COS") | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Revenue from contract with customer reserve for estimated exit costs before tax | 7,442 | |||||||
Operating Segments | FPD | Gross loss | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Revenue from contract with customer reserve for estimated exit costs before tax | (16,772) | |||||||
Operating Segments | FPD | Selling, general and administrative expense ("SG&A") | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Revenue from contract with customer reserve for estimated exit costs before tax | 13,977 | |||||||
Operating Segments | FPD | Operating loss | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Revenue from contract with customer reserve for estimated exit costs before tax | (30,749) | |||||||
Operating Segments | FCD | Sales | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Revenue from contract with customer reserve for estimated exit costs before tax | 0 | |||||||
Operating Segments | FCD | Cost of sales ("COS") | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Revenue from contract with customer reserve for estimated exit costs before tax | 1,418 | |||||||
Operating Segments | FCD | Gross loss | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Revenue from contract with customer reserve for estimated exit costs before tax | (1,418) | |||||||
Operating Segments | FCD | Selling, general and administrative expense ("SG&A") | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Revenue from contract with customer reserve for estimated exit costs before tax | 1,720 | |||||||
Operating Segments | FCD | Operating loss | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Revenue from contract with customer reserve for estimated exit costs before tax | (3,138) | |||||||
Subsidiaries | Russian Subsidiary | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Sales | 14,000 | |||||||
Net assets | $ 2,700 | |||||||
Cash and cash equivalents | 7,100 | |||||||
Accounts receivable, net | 3,600 | |||||||
Intercompany payable | 9,300 | |||||||
Revenue from contract with customer reserve for estimated exit costs before tax | 13,600 | 20,200 | ||||||
Revenue from contract with customer reserve for estimated exit costs after tax | 9,800 | $ 21,000 | ||||||
Subsidiaries | Certain Foreign Subsidiaries | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Sales | $ 36,000 | |||||||
FPD | ||||||||
Research and Development [Abstract] | ||||||||
Goodwill | $ 277,000 | $ 277,000 | ||||||
Percentage of fair value in excess of carrying value | 65% | 65% | 82% | 46% | ||||
Minimum | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Estimate of possible loss | $ 81,800 | |||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||||
Intangible asset, useful life (in years) | 4 years | |||||||
Minimum | Internally developed software | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Property, plant and equipment, useful life (in years) | 3 years | |||||||
Minimum | Cloud Computing Arrangements | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Property, plant and equipment, useful life (in years) | 3 years | |||||||
Maximum | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Estimate of possible loss | $ 127,300 | |||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||||
Intangible asset, useful life (in years) | 40 years | |||||||
Maximum | Internally developed software | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Property, plant and equipment, useful life (in years) | 7 years | |||||||
Maximum | Cloud Computing Arrangements | ||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||
Property, plant and equipment, useful life (in years) | 7 years |
Significant Accounting Polici_5
Significant Accounting Policies and Accounting Developments (Estimated Useful Lives of Assets) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
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 |
Revenue Recognition (Details)
Revenue Recognition (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segments | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Remaining performance obligation, amount | $ | $ 652 | ||
Number of operating segments (in segments) | segments | 2 | ||
Transferred over Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from products and services percentage | 13% | 15% | 22% |
Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue from products and services percentage | 87% | 85% | 78% |
Revenue Recognition (Performanc
Revenue Recognition (Performance Obligations) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 652 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 451 |
Remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation, amount | $ 201 |
Remaining performance obligation, period | 1 year |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Sales | $ 3,615,120 | $ 3,541,060 | $ 3,728,134 |
FPD | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 2,518,000 | 2,468,098 | 2,673,705 |
FCD | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 1,097,120 | 1,072,962 | 1,054,429 |
Original Equipment | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 1,706,569 | 1,704,263 | 1,900,491 |
Original Equipment | FPD | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 881,061 | 899,519 | 1,091,906 |
Original Equipment | FCD | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 825,508 | 804,744 | 808,585 |
Aftermarket | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 1,908,551 | 1,836,797 | 1,827,643 |
Aftermarket | FPD | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 1,636,939 | 1,568,579 | 1,581,799 |
Aftermarket | FCD | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 271,612 | 268,218 | 245,844 |
North America | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 1,532,860 | 1,345,049 | 1,468,857 |
North America | FPD | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 1,060,393 | 955,283 | 1,039,285 |
North America | FCD | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 472,467 | 389,766 | 429,572 |
Latin America | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 246,453 | 241,704 | 217,910 |
Latin America | FPD | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 222,878 | 211,150 | 191,517 |
Latin America | FCD | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 23,575 | 30,554 | 26,393 |
Middle East and Africa | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 473,165 | 418,694 | 469,942 |
Middle East and Africa | FPD | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 372,148 | 311,161 | 359,403 |
Middle East and Africa | FCD | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 101,017 | 107,533 | 110,539 |
Asia Pacific | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 694,559 | 816,109 | 808,030 |
Asia Pacific | FPD | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 389,366 | 482,596 | 537,792 |
Asia Pacific | FCD | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 305,193 | 333,513 | 270,238 |
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 668,083 | 719,504 | 763,395 |
Europe | FPD | |||
Disaggregation of Revenue [Line Items] | |||
Sales | 473,215 | 507,908 | 545,708 |
Europe | FCD | |||
Disaggregation of Revenue [Line Items] | |||
Sales | $ 194,868 | $ 211,596 | $ 217,687 |
Revenue Recognition (Contract A
Revenue Recognition (Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Change In Contract With Customer, Asset And Liability [Roll Forward] | |||
Contract assets, net | $ 195,598 | ||
Contract liabilities | 202,965 | ||
Amounts transferred from contract assets to receivables | (41,768) | $ 74,333 | $ 4,258 |
Contract assets, net | 233,457 | 195,598 | |
Contract liabilities | 256,963 | 202,965 | |
Contract Assets, net (Current) | |||
Change In Contract With Customer, Asset And Liability [Roll Forward] | |||
Contract Assets, net (Current) | 195,598 | 277,734 | |
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 | 660,039 | 784,934 | |
Increase due to billings arising during the period in excess of revenue recognized | 0 | 0 | |
Amounts transferred from contract assets to receivables | (603,422) | (848,031) | |
Currency effects and other, net, contract assets | (18,758) | (19,039) | |
Contract Assets, net (Current) | 233,457 | 195,598 | 277,734 |
Long-term Contract Assets, net | |||
Change In Contract With Customer, Asset And Liability [Roll Forward] | |||
Contract assets, net | 426 | 1,139 | |
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 | 0 | |
Increase due to billings arising during the period in excess of revenue recognized | 0 | 0 | |
Amounts transferred from contract assets to receivables | (1,338) | (2,329) | |
Currency effects and other, net, contract assets | 1,209 | 1,616 | |
Contract assets, net | 297 | 426 | 1,139 |
Contract Liabilities (Current) | |||
Change In Contract With Customer, Asset And Liability [Roll Forward] | |||
Contract liabilities | 202,965 | 194,227 | |
Revenue recognized that was included in contract liabilities at the beginning of the period | (143,736) | (153,221) | |
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 | 203,711 | 165,990 | |
Amounts transferred from contract assets to receivables | 0 | 0 | |
Currency effects and other, net, contract liabilities | (5,977) | (4,031) | |
Contract liabilities | 256,963 | 202,965 | 194,227 |
Long-term Contract Liabilities | |||
Change In Contract With Customer, Asset And Liability [Roll Forward] | |||
Long-term Contract Liabilities | 1,059 | 464 | $ 822 |
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 | 0 | |
Increase due to billings arising during the period in excess of revenue recognized | 0 | 0 | |
Amounts transferred from contract assets to receivables | 0 | 0 | |
Currency effects and other, net, contract liabilities | $ 595 | $ (358) |
Allowance for Expected Credit_3
Allowance for Expected Credit Losses - Additional Information (Details) | Dec. 31, 2022 |
Credit Loss [Abstract] | |
Contract assets, allowance for credit loss as a percentage of assets | 1% |
Allowance for Expected Credit_4
Allowance for Expected Credit Losses - Change In Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounts receivable | |||
Beginning balance | $ 74,336 | $ 75,176 | $ 53,412 |
Charges to cost and expenses, net of recoveries | 12,530 | 3,934 | 9,326 |
Write-offs | (3,188) | (2,015) | |
Currency effects and other, net | (616) | (2,759) | 5,468 |
Ending balance | 83,062 | 74,336 | 75,176 |
Short-term contract assets | |||
Beginning balance | 2,393 | 3,205 | 206 |
Charges to cost and expenses, net of recoveries | 2,785 | 0 | 0 |
Write-offs | 0 | 0 | |
Currency effects and other, net | 641 | (812) | 220 |
Ending balance | 5,819 | 2,393 | 3,205 |
Long-term receivables | |||
Beginning balance, January 1, | 67,696 | 67,842 | 68,555 |
Currency effects and other, net | (1,319) | (146) | (34) |
Ending balance, December 31, | 66,377 | 67,696 | 67,842 |
Adoption of ASU 2016-13 | |||
Accounts receivable | |||
Beginning balance | 6,970 | ||
Short-term contract assets | |||
Beginning balance | 2,779 | ||
Long-term receivables | |||
Beginning balance, January 1, | $ 0 | 0 | (679) |
Ending balance, December 31, | $ 0 | $ 0 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||||
Lease not yet commenced, expense | $ 2,000 | $ 15,800 | ||
Operating lease expense | 67,194 | 66,813 | $ 64,349 | |
SG&A | 815,545 | 797,076 | 878,245 | |
Cost of sales | $ 2,620,825 | $ 2,491,335 | $ 2,611,365 | |
Operating Real Estate Lease | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease expense | $ 6,400 | |||
SG&A | 5,500 | |||
Cost of sales | 900 | |||
Operating Real Estate Leases With Escalating Rent Payments Portion Prior To Adoption | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease expense | $ 5,800 |
Leases (Other Information) (Det
Leases (Other Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finance Leases: | |||
ROU assets recorded under finance leases | $ 33,427 | $ 28,416 | |
Accumulated depreciation associated with finance leases | (15,851) | (12,227) | |
Total finance leases ROU assets, net | 17,576 | 16,189 | |
Total finance leases liabilities | 17,939 | 16,477 | |
Operating Lease Costs: | |||
Fixed lease expense | 59,782 | 57,482 | $ 57,050 |
Variable lease expense | 7,412 | 9,331 | 7,299 |
Total operating lease expense | 67,194 | 66,813 | 64,349 |
Finance Lease Costs: | |||
Depreciation of finance lease ROU assets | 5,984 | 5,374 | 5,392 |
Interest on lease liabilities | 604 | 617 | 646 |
Total finance lease expense | $ 6,588 | $ 5,991 | $ 6,038 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net | Property, plant and equipment, net | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Less amounts due within one year | Less amounts due within one year | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Total debt due after one year | Total debt due after one year |
Leases (Supplemental Cash Flows
Leases (Supplemental Cash Flows Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 57,712 | $ 61,240 | $ 66,478 |
Financing cash flows from finance leases | 6,039 | 5,285 | 4,704 |
ROU assets obtained in exchange for lease obligations: | |||
Operating leases | 26,581 | 35,542 | 62,425 |
Finance leases | $ 7,906 | $ 4,177 | $ 13,124 |
Weighted average remaining lease term (in years) | |||
Operating leases | 8 years | 8 years | 9 years |
Finance leases | 6 years | 6 years | 7 years |
Weighted average discount rate (percent) | |||
Operating leases | 4% | 3.90% | 4.20% |
Finance leases | 3.90% | 3.40% | 3.50% |
Leases (Future Lease Payments)
Leases (Future Lease Payments) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Operating Leases | ||
2023 | $ 38,724 | |
2024 | 33,466 | |
2025 | 26,466 | |
2026 | 21,565 | |
2027 | 18,895 | |
Thereafter | 81,007 | |
Total future minimum lease payments | 220,123 | |
Less: Imputed interest | (32,399) | |
Total operating leases liabilities | 187,724 | |
Liabilities recorded under operating leases (current) | 32,528 | $ 32,628 |
Operating lease liabilities | 155,196 | 166,786 |
Finance Leases | ||
2023 | 5,767 | |
2024 | 4,288 | |
2025 | 3,092 | |
2026 | 1,549 | |
2027 | 694 | |
Thereafter | 4,955 | |
Total future minimum lease payments | 20,345 | |
Less: Imputed interest | (2,406) | |
Total | 17,939 | $ 16,477 |
Debt due within one year | 5,545 | |
Long-term debt due after one year | $ 12,394 |
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, 2022 | Dec. 31, 2021 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 1,196,479 | $ 1,224,886 |
Currency translation and other | (28,355) | (28,407) |
Ending balance | 1,168,124 | 1,196,479 |
FPD | ||
Goodwill [Roll Forward] | ||
Beginning balance | 787,213 | 805,055 |
Currency translation and other | (14,940) | (17,842) |
Ending balance | 772,273 | 787,213 |
FCD | ||
Goodwill [Roll Forward] | ||
Beginning balance | 409,266 | 419,831 |
Currency translation and other | (13,415) | (10,565) |
Ending balance | $ 395,851 | $ 409,266 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Changes in Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2013 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Ending Gross Amount | $ 286,739 | $ 292,307 | |
Finite-lived intangible assets, Accumulated Amortization | (233,391) | (226,329) | |
Indefinite-lived intangible assets, Ending Gross Amount | 82,640 | 88,069 | |
Indefinite-lived intangible assets, Accumulated Amortization | $ (1,485) | (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 | $ 88,830 | 89,699 | |
Finite-lived intangible assets, Accumulated Amortization | $ (88,256) | (86,275) | |
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 | $ 79,472 | 82,420 | |
Finite-lived intangible assets, Accumulated Amortization | $ (70,015) | (67,279) | |
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 | $ 25,639 | 26,339 | |
Finite-lived intangible assets, Accumulated Amortization | $ (25,639) | (26,339) | |
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 | $ 92,798 | 93,849 | |
Finite-lived intangible assets, Accumulated Amortization | $ (49,481) | $ (46,436) | |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Actual for year ended December 31, 2022 | $ 11,436 | $ 13,400 | $ 13,600 |
Estimated for year ended December 31, 2023 | 9,715 | ||
Estimated for year ended December 31, 2024 | 5,616 | ||
Estimated for year ended December 31, 2025 | 2,174 | ||
Estimated for year ended December 31, 2026 | 2,038 | ||
Estimated for year ended December 31, 2027 | 2,038 | ||
Thereafter | $ 31,767 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Inventory, Net [Abstract] | |||
Raw materials | $ 360,039 | $ 318,348 | $ 321,600 |
Work in process | 295,678 | 242,143 | 210,174 |
Finished goods | 245,494 | 213,096 | 221,532 |
Less: Excess and obsolete reserve | (98,013) | (95,300) | (86,078) |
Inventories, net | 803,198 | 678,287 | 667,228 |
Inventory Write-down | $ 15,400 | $ 15,600 | $ 14,900 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans (Disclosures by Compensation Plans) (Details) - shares | 12 Months Ended | |
Dec. 31, 2022 | Jan. 01, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock available under stock option plan | 9,756,068 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
General vesting period (years) | 3 years | |
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 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans (Information Regarding Stock Options) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding (in shares) | 114,943 | ||
Exercisable (in shares) | 114,943 | 0 | 0 |
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Vested In Period, Grant Date Fair Value | $ 2 | ||
Outstanding (in dollars per share) | $ 48.63 | ||
Granted (in shares) | 0 | 0 | 0 |
Canceled (in shares) | 0 | 0 | 0 |
Vested (in shares) | 0 | 0 | 0 |
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 | ||
Weighted Average Remaining Contractual Life | 4 years 3 months 18 days | 5 years 3 months 18 days | 6 years 3 months 18 days |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
General vesting period (years) | 3 years | ||
Unearned compensation costs | $ 18 | $ 24.2 | |
Recognition of unearned compensation, (years) | 1 year | ||
Fair value of Restricted Shares vested | $ 23.5 | 25.2 | $ 26.4 |
Stock-based compensation expense | 25.5 | 29.5 | 27.3 |
Related income tax benefit | (5.8) | (6.7) | (6.2) |
Net stock-based compensation expense | $ 19.7 | $ 22.8 | $ 21.1 |
Shares | |||
Outstanding — beginning of year (in shares) | 1,671,011 | ||
Granted (in shares) | 982,654 | ||
Vested (in shares) | (549,129) | ||
Canceled (in shares) | (406,757) | ||
Outstanding — ending of year (in shares) | 1,697,779 | 1,671,011 | |
Weighted Average Grant-Date Fair Value | |||
Outstanding — beginning of year (in dollars per share) | $ 43.06 | ||
Granted (in dollars per share) | 32.91 | ||
Vested (in dollars per share) | 42.85 | ||
Canceled (in dollars per share) | 43.41 | ||
Outstanding — ending of year (in dollars per share) | $ 37.17 | $ 43.06 | |
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) | 485,000 | ||
Weighted Average Grant-Date Fair Value | |||
Total shareholder return performance measure, as a percentage | 15% | ||
Estimated vesting of shares based on performance shares | 247,000 | ||
Performance Shares | Minimum | |||
Weighted Average Grant-Date Fair Value | |||
Estimated vesting of shares based on performance shares | 0 | ||
Performance Shares | Minimum | Issue Date, 2019 and 2020 | |||
Weighted Average Grant-Date Fair Value | |||
Vesting percentage of grants, depending on achievement of specific performance targets | 0% | ||
Performance Shares | Maximum | |||
Weighted Average Grant-Date Fair Value | |||
Estimated vesting of shares based on performance shares | 1,067,000 | ||
Performance Shares | Maximum | Issue Date, 2019 and 2020 | |||
Weighted Average Grant-Date Fair Value | |||
Vesting percentage of grants, depending on achievement of specific performance targets | 200% | ||
Performance Shares | Maximum | Issued in 2021 | |||
Weighted Average Grant-Date Fair Value | |||
Vesting percentage of grants, depending on achievement of specific performance targets | 230% |
Derivatives and Hedging Activ_3
Derivatives and Hedging Activities (Details Textual) $ in Thousands, € in Millions | 12 Months Ended | ||||||
Dec. 22, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 22, 2022 EUR (€) | Sep. 22, 2020 EUR (€) | Mar. 31, 2016 EUR (€) | |
Derivative [Line Items] | |||||||
Derivative, notional amount | € | € 423.2 | ||||||
Noncurrent derivative assets | $ 68,200 | ||||||
Proceeds from termination of cross-currency swap | $ 66,000 | $ (66,004) | $ 0 | $ 0 | |||
2022 EUR Senior notes | |||||||
Derivative [Line Items] | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.25% | ||||||
Foreign Exchange Forward | |||||||
Derivative [Line Items] | |||||||
Derivative, lower remaining maturity range | 3 days | ||||||
Derivative, upper remaining maturity range | 26 months | ||||||
Currency Swap | |||||||
Derivative [Line Items] | |||||||
Derivative, Interest Payable | $ (8,500) | ||||||
Not Designated as a Hedging Instrument | Foreign Exchange Forward | |||||||
Derivative [Line Items] | |||||||
Derivative, notional amount | $ 459,200 | $ 425,200 | |||||
2022 EUR Senior notes | |||||||
Derivative [Line Items] | |||||||
Designated amount, net investment hedge | € | € 336.3 | € 255.7 |
Derivatives and Hedging Activ_4
Derivatives and Hedging Activities (Fair Value Balance Sheet Disclosures) (Details) - USD ($) $ in Thousands | Dec. 22, 2022 | Dec. 31, 2022 | Dec. 31, 2021 |
Fair value disclosues, by balance sheet location | |||
Noncurrent derivative assets | $ 68,200 | ||
Derivative Asset Noncurrent Statement Of Financial Position Extensible Enumeration Not Disclosed Flag | Noncurrent derivative assets | ||
Not Designated as a Hedging Instrument | Forward Exchange Contracts | |||
Fair value disclosues, by balance sheet location | |||
Current derivative assets | $ 2,207 | $ 740 | |
Noncurrent derivative assets | 66 | 2 | |
Current derivative liabilities | 4,422 | 2,924 | |
Noncurrent derivative liabilities | $ 63 | $ 82 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Not Designated as a Hedging Instrument | Forward Exchange Contracts | |||
Derivative [Line Items] | |||
Gains (losses) recognized in income | $ (6,173) | $ 3,295 | $ (10,294) |
Derivatives and Hedging Activ_6
Derivatives and Hedging Activities (Cross Currency Swap) (Details) - Currency Swap - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Hierarchial Level 2 | |||
Derivative [Line Items] | |||
Derivative Liability | $ 0 | $ 23,129 | |
Net Investment Hedging | |||
Derivative [Line Items] | |||
Gains (losses) recognized in income | (37,135) | (15,578) | $ 6,067 |
(Gain) loss-excluded component | 11,875 | 2,111 | (7,769) |
(Gain) loss recognized in AOCL | $ 49,010 | $ 17,689 | $ (13,836) |
Derivatives and Hedging Activ_7
Derivatives and Hedging Activities (Remeasurement) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net Investment Hedging | |||
Derivative [Line Items] | |||
Loss recorded in AOCL | $ 0 | $ (29,554) | $ (34,973) |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Estimated fair value | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Senior Notes | $ 790.5 |
Carrying value | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Senior Notes | $ 989.2 |
Details of Certain Consolidat_3
Details of Certain Consolidated Balance Sheet Captions (Accounts Receivable, net) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Details of Certain Consolidated Balance Sheet Captions [Abstract] | ||
Trade accounts receivables | $ 919,045 | $ 770,280 |
Less: allowance for expected credit losses | (66,444) | (55,264) |
Other short-term receivables | 32,649 | 43,266 |
Less: allowance for expected credit losses | (16,618) | (19,072) |
Accounts receivable, net | $ 868,632 | $ 739,210 |
Details of Certain Consolidat_4
Details of Certain Consolidated Balance Sheet Captions (Property, Plant and Equipment, net) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 1,673,901 | $ 1,707,750 |
Less: accumulated depreciation | (1,172,956) | (1,191,823) |
Property, plant and equipment, net | 500,945 | 515,927 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 60,669 | 62,613 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 425,019 | 441,627 |
Machinery, equipment and tooling | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 750,933 | 751,944 |
Software, furniture and fixtures and other | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 437,280 | $ 451,566 |
Details of Certain Consolidat_5
Details of Certain Consolidated Balance Sheet Captions (Accrued Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Details of Certain Consolidated Balance Sheet Captions [Abstract] | ||
Wages, compensation and other benefits | $ 175,898 | $ 204,347 |
Commissions and royalties | 18,526 | 21,911 |
Warranty costs and late delivery penalties | 21,850 | 23,741 |
Sales and use tax | 29,092 | 20,782 |
Income tax | 32,968 | 47,186 |
Other | 149,244 | 127,125 |
Accrued liabilities | $ 427,578 | $ 445,092 |
Other accrued liabilities maximum percentage of current liabilities | 5% |
Details of Certain Consolidat_6
Details of Certain Consolidated Balance Sheet Captions (Retirement Obligations and Other Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Details of Certain Consolidated Balance Sheet Captions [Abstract] | ||
Pension and postretirement benefits | $ 142,204 | $ 188,999 |
Deferred taxes | 7,901 | 9,169 |
Operating lease liabilities | 155,196 | 166,786 |
Legal and environmental | 90,207 | 86,561 |
Uncertain tax positions and other tax liabilities | 37,604 | 37,013 |
Other | 31,613 | 30,320 |
Retirement obligations and other liabilities | $ 309,529 | $ 352,062 |
Equity Method Investments (Deta
Equity Method Investments (Details) | Dec. 31, 2022 ventures |
Schedule of Equity Method Investments [Line Items] | |
Number of joint ventures | 5 |
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 Finance Lease Obligations) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,273,486 | |
Finance lease obligations and other borrowings | 24,712 | $ 22,851 |
Debt and finance lease obligations | 1,273,486 | 1,302,828 |
Less amounts due within one year | 49,335 | 41,058 |
Total debt due after one year | $ 1,224,151 | $ 1,261,770 |
2022 EUR Senior notes | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percentage) | 1.25% | |
2030 USD Senior notes | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percentage) | 3.50% | 3.50% |
Unamortized discount and debt issuance costs | $ 5,055 | |
Long-term debt | $ 494,945 | $ 494,389 |
2032 USD Senior notes | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percentage) | 2.80% | |
Unamortized discount and debt issuance costs | $ 5,727 | 6,273 |
Long-term debt | $ 494,273 | $ 493,727 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percentage) | 5.98% | 1.45% |
Unamortized discount and debt issuance costs | $ 5,611 | |
Debt issuance costs | $ 444 | 639 |
Long-term debt | $ 259,556 | $ 291,861 |
Debt and Finance Lease Obliga_4
Debt and Finance Lease Obligations (Maturities of Debt by Type) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
2023 | $ 49,165 | |
2024 | 75,240 | |
2025 | 59,905 | |
2026 | 99,958 | |
2027 | 0 | |
Thereafter | 989,218 | |
Total | 1,273,486 | |
Term Loan | ||
Debt Instrument [Line Items] | ||
2023 | 39,830 | |
2024 | 59,863 | |
2025 | 59,905 | |
2026 | 99,958 | |
2027 | 0 | |
Thereafter | 0 | |
Total | 259,556 | $ 291,861 |
Senior Notes and other debt | ||
Debt Instrument [Line Items] | ||
2023 | 9,335 | |
2024 | 15,377 | |
2025 | 0 | |
2026 | 0 | |
2027 | 0 | |
Thereafter | 989,218 | |
Total | $ 1,013,930 |
Debt and Finance Lease Obliga_5
Debt and Finance Lease Obligations (Senior Notes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | $ 0 | $ 46,176 | $ 1,201 | |
2032 USD Senior notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percentage) | 2.80% | |||
2030 USD Senior notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percentage) | 3.50% | 3.50% | ||
2022 EUR Senior notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percentage) | 1.25% | |||
Loss on extinguishment of debt | $ 7,600 |
Debt and Finance Lease Obliga_6
Debt and Finance Lease Obligations (Senior Credit Facility) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 13, 2021 | Mar. 19, 2021 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Line of Credit Facility [Line Items] | ||||||||||
Loss on extinguishment of debt | $ 0 | $ (46,176,000) | $ (1,201,000) | |||||||
Term Loan | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Maximum borrowing capacity | $ 300,000,000 | |||||||||
Term Loan | Forecast | Subsequent Event | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Debt instrument, periodic payment | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | ||||||
Revolving Credit Facility | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Amount outstanding | 0 | 0 | ||||||||
Current borrowing capacity | 293,900,000 | 614,200,000 | ||||||||
Senior Credit Facility | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Letters of credit, amount outstanding | $ 71,700,000 | $ 78,300,000 | ||||||||
2022 EUR Senior notes | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Proceeds from (repayments of) long-term debt and capital securities | $ 400,900,000 | |||||||||
Loss on extinguishment of debt | $ (7,600,000) | |||||||||
Make-whole premium | $ 6,600,000 | |||||||||
Revolving Credit Facility | New Senior Credit Facility | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Maximum borrowing capacity | 800,000,000 | |||||||||
Commitment fee percentage | 0.175% | |||||||||
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 | 0.08% | |||||||||
Minimum | London Interbank Offered Rate (LIBOR) | Term Loan | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis spread on variable rate | 0.875% | |||||||||
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% | |||||||||
Minimum | Base Rate | Term Loan | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis spread on variable rate | 0% | |||||||||
Minimum | Base Rate | Revolving Credit Facility | New Senior Credit Facility | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis spread on variable rate | 0% | |||||||||
Maximum | Revolving Credit Facility | New Senior Credit Facility | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Unused capacity, commitment fee percentage | 0.25% | |||||||||
Maximum | London Interbank Offered Rate (LIBOR) | Term Loan | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis spread on variable rate | 1.625% | |||||||||
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 | Term Loan | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Basis spread on variable rate | 0.625% | |||||||||
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Postretirement Medical Benefits | |||
Weighted average assumptions used to determine Benefit Obligations: | |||
Discount rate | 5.83% | 2.83% | 2.32% |
Weighted average assumptions used to determine net pension expense: | |||
Discount rate | 2.83% | 2.32% | 3.27% |
United States | Pension Plan | |||
Weighted average assumptions used to determine Benefit Obligations: | |||
Discount rate | 5.73% | 3% | 2.62% |
Rate of increase in compensation levels | 3.50% | 3.50% | 3.63% |
Weighted average assumptions used to determine net pension expense: | |||
Long-term rate of return on assets | 5.75% | 6% | 6% |
Discount rate | 3% | 2.62% | 3.41% |
Rate of increase in compensation levels | 3.50% | 3.50% | 3.56% |
Weighted-average interest crediting rates | 3.79% | 3.79% | 3.79% |
Foreign Plan | |||
Weighted average assumptions used to determine Benefit Obligations: | |||
Discount rate | 1.23% | ||
Rate of increase in compensation levels | 3.61% | 3.18% | 3.11% |
Weighted average assumptions used to determine net pension expense: | |||
Long-term rate of return on assets | 2.37% | ||
Discount rate | 1.71% | 1.23% | 1.61% |
Rate of increase in compensation levels | 3.18% | 3.11% | 3.12% |
Weighted-average interest crediting rates | 1.49% | 1.41% | 1% |
Foreign Plan | Pension Plan | |||
Weighted average assumptions used to determine Benefit Obligations: | |||
Discount rate | 4.46% | 1.71% | |
Weighted average assumptions used to determine net pension expense: | |||
Long-term rate of return on assets | 2.43% | 2.37% |
Pension and Postretirement Be_4
Pension and Postretirement Benefits (Details Textual) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) plan | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan expense | $ 21,900 | $ 19,900 | $ 20,000 |
Postretirement Medical Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.83% | 2.83% | 2.32% |
Company contributions | $ 2,400 | $ 3,300 | $ 3,200 |
Assumed rate of increase in medical costs | 7.25% | 7.50% | 7% |
Minimum medical cost rate to be acheived | 5% | ||
United States | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.73% | 3% | 2.62% |
Long-term rate of return on assets | 5.75% | 6% | 6% |
Company contributions | $ 639 | $ 20,599 | |
United States | Equity Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, target allocation (as a percent) | 34% | ||
United States | Fixed Income | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, target allocation (as a percent) | 65% | ||
United States | Fixed Income | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets, target allocation (as a percent) | 65% | 57% | |
Plan assets, actual allocation (as a percent) | 65% | 57% | |
Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 1.23% | ||
Long-term rate of return on assets | 2.37% | ||
Foreign Plan | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.46% | 1.71% | |
Long-term rate of return on assets | 2.43% | 2.37% | |
Company contributions | $ 15,657 | $ 11,964 | |
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% | 51% | |
Plan assets, actual allocation (as a percent) | 50% | 51% | |
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) | 90% |
Pension and Postretirement Be_5
Pension and Postretirement Benefits (Net Benefit Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Postretirement Medical Benefits | |||
Components of the net periodic cost for retirement and postretirement benefits | |||
Interest cost | $ 464 | $ 399 | $ 596 |
Amortization of unrecognized net loss | 192 | (21) | (132) |
U.S. net pension expense | 778 | 500 | 586 |
United States | Pension Plan | |||
Components of the net periodic cost for retirement and postretirement benefits | |||
Service cost | 24,680 | 25,162 | 25,893 |
Interest cost | 13,157 | 11,952 | 15,100 |
Expected return on plan assets | (25,345) | (25,377) | (25,794) |
Settlement loss and other | 0 | 0 | 128 |
Amortization of unrecognized prior service cost | 175 | 188 | 184 |
Amortization of unrecognized net loss | 3,461 | 7,725 | 6,977 |
U.S. net pension expense | 16,128 | 19,650 | 22,488 |
Foreign Plan | Pension Plan | |||
Components of the net periodic cost for retirement and postretirement benefits | |||
Service cost | 5,984 | 7,336 | 7,052 |
Interest cost | 6,506 | 5,544 | 6,572 |
Expected return on plan assets | (5,883) | (6,204) | (5,018) |
Settlement loss and other | (75) | 640 | 708 |
Amortization of unrecognized net loss | 2,729 | 4,509 | 4,315 |
U.S. net pension expense | $ 9,554 | $ 12,125 | $ 13,891 |
Pension and Postretirement Be_6
Pension and Postretirement Benefits (Funded Status) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Postretirement Medical Benefits | |||
Funded status of plan: | |||
Benefit Obligation | $ (13,353) | $ (17,021) | $ (18,648) |
Funded status | (13,353) | (17,021) | |
United States | Pension Plan | |||
Funded status of plan: | |||
Plan assets, at fair value | 365,044 | 488,281 | 477,680 |
Benefit Obligation | (382,959) | (471,825) | (487,418) |
Funded status | (17,915) | 16,456 | |
Foreign Plan | Pension Plan | |||
Funded status of plan: | |||
Plan assets, at fair value | 172,276 | 275,941 | 287,308 |
Benefit Obligation | (268,364) | (420,809) | $ (469,998) |
Funded status | $ (96,088) | $ (144,868) |
Pension and Postretirement Be_7
Pension and Postretirement Benefits (Amounts Recognized in Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||
Noncurrent liabilities | $ (142,204) | $ (188,999) |
Postretirement Medical Benefits | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||
Current liabilities | (2,086) | (2,239) |
Noncurrent liabilities | (11,267) | (14,782) |
Funded status | (13,353) | (17,021) |
United States | Pension Plan | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||
Noncurrent assets | 0 | 22,398 |
Current liabilities | (232) | (170) |
Noncurrent liabilities | (17,683) | (5,772) |
Funded status | (17,915) | 16,456 |
Foreign Plan | Pension Plan | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position [Abstract] | ||
Noncurrent assets | 15,305 | 22,655 |
Current liabilities | (6,877) | (7,205) |
Noncurrent liabilities | (104,516) | (160,318) |
Funded status | $ (96,088) | $ (144,868) |
Pension and Postretirement Be_8
Pension and Postretirement Benefits (Change in Benefit Obligation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Postretirement Medical Benefits | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance — January 1 | $ 17,021 | $ 18,648 | |
Interest cost | 464 | 399 | $ 596 |
Employee contributions | 792 | 874 | |
Medicare subsidies receivable | 0 | 67 | |
Actuarial loss (gain) | (1,747) | 1,225 | |
Benefits paid | (3,177) | (4,192) | |
Balance — December 31 | 13,353 | 17,021 | 18,648 |
United States | Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance — January 1 | 471,825 | 487,418 | |
Service cost | 24,680 | 25,162 | 25,893 |
Interest cost | 13,157 | 11,952 | 15,100 |
Plan amendments and settlements | 179 | 0 | |
Actuarial loss (gain) | (87,791) | (11,208) | |
Benefits paid | (39,091) | (41,499) | |
Balance — December 31 | 382,959 | 471,825 | 487,418 |
Accumulated benefit obligations | 382,488 | 471,024 | |
Foreign Plan | Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Balance — January 1 | 420,809 | 469,998 | |
Service cost | 5,984 | 7,336 | 7,052 |
Interest cost | 6,506 | 5,544 | 6,572 |
Employee contributions | 71 | 74 | |
Settlements and other | 7,944 | 3,140 | |
Actuarial loss (gain) | (108,546) | (24,493) | |
Benefits paid | (15,797) | (17,316) | |
Currency translation impact | (32,719) | (17,194) | |
Balance — December 31 | 268,364 | 420,809 | $ 469,998 |
Accumulated benefit obligations | $ 253,428 | $ 399,757 |
Pension and Postretirement Be_9
Pension and Postretirement Benefits (Expected Benefit Payments) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Postretirement Medical Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | $ 2.1 |
2024 | 1.9 |
2025 | 1.8 |
2026 | 1.6 |
2027 | 1.5 |
2028-2032 | 5.3 |
United States | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 40.6 |
2024 | 39.1 |
2025 | 40 |
2026 | 40.4 |
2027 | 40 |
2028-2032 | 194.1 |
Foreign Plan | Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2023 | 15.1 |
2024 | 15.8 |
2025 | 16.5 |
2026 | 17.1 |
2027 | 18 |
2028-2032 | $ 91.9 |
Pension and Postretirement B_10
Pension and Postretirement Benefits (Change in Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Postretirement Medical Benefits | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax [Abstract] | |||
Balance — January 1 | $ (2,072) | $ (1,213) | |
Amortization of net loss | 147 | (16) | |
Net gain (loss) arising during the year | 1,336 | (937) | |
Amortization of prior service cost | (93) | (94) | |
Prior service cost arising during the year | 122 | 122 | $ 122 |
Balance — December 31 | (496) | (2,072) | (1,213) |
United States | Pension Plan | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax [Abstract] | |||
Balance — January 1 | (30,014) | (49,321) | |
Amortization of net loss | 2,647 | 5,907 | |
Net gain (loss) arising during the year | (17,085) | 13,256 | |
Amortization of prior service cost | (134) | (144) | |
Prior service cost arising during the year | 137 | 0 | |
Balance — December 31 | (44,455) | (30,014) | (49,321) |
Foreign Plan | Pension Plan | |||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax [Abstract] | |||
Balance — January 1 | (70,581) | (97,246) | |
Amortization of net loss | 2,450 | 4,207 | |
Net gain (loss) arising during the year | 21,099 | 17,995 | |
Settlement losses | (130) | (616) | |
Currency translation impact and other | 4,714 | 3,847 | |
Prior service cost arising during the year | 293 | 300 | 262 |
Prior service cost arising during the year | 233 | 0 | |
Balance — December 31 | $ (42,421) | $ (70,581) | $ (97,246) |
Pension and Postretirement B_11
Pension and Postretirement Benefits (Amounts Recognized in Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Postretirement Medical Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized net gain (loss) | $ 55 | $ (1,420) | |
Unrecognized prior service cost | (551) | (652) | |
Accumulated other comprehensive loss, net of tax | (496) | (2,072) | $ (1,213) |
United States | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized net gain (loss) | (43,725) | (29,344) | |
Unrecognized prior service cost | (730) | (670) | |
Accumulated other comprehensive loss, net of tax | (44,455) | (30,014) | (49,321) |
Foreign Plan | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized net gain (loss) | (39,007) | (67,192) | |
Unrecognized prior service cost | (3,414) | (3,389) | |
Accumulated other comprehensive loss, net of tax | $ (42,421) | $ (70,581) | $ (97,246) |
Pension and Postretirement B_12
Pension and Postretirement Benefits (Plan Assets) (Details) - Pension Plan - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
United States | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | $ 488,281 | $ 477,680 |
Return on plan assets | (84,785) | 31,501 |
Company contributions | 639 | 20,599 |
Benefits paid | (39,091) | (41,499) |
Ending balance | 365,044 | 488,281 |
Fair Value | 365,044 | 488,281 |
United States | Hierarchial Level 1 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 6,192 | |
Ending balance | 4,072 | 6,192 |
Fair Value | 4,072 | 6,192 |
United States | Hierarchial Level 2 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 482,089 | |
Ending balance | 360,972 | 482,089 |
Fair Value | 360,972 | 482,089 |
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 | 6,192 | |
Ending balance | 4,072 | 6,192 |
Fair Value | 4,072 | 6,192 |
United States | Cash and Cash Equivalents | Hierarchial Level 1 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 6,192 | |
Ending balance | 4,072 | 6,192 |
Fair Value | 4,072 | 6,192 |
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 | 128,269 | |
Ending balance | 77,217 | 128,269 |
Fair Value | 77,217 | 128,269 |
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 | 128,269 | |
Ending balance | 77,217 | 128,269 |
Fair Value | 77,217 | 128,269 |
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 | 79,089 | |
Ending balance | 46,476 | 79,089 |
Fair Value | 46,476 | 79,089 |
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 | 79,089 | |
Ending balance | 46,476 | 79,089 |
Fair Value | 46,476 | 79,089 |
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 | 71,100 | |
Ending balance | 64,877 | 71,100 |
Fair Value | 64,877 | 71,100 |
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 | 71,100 | |
Ending balance | 64,877 | 71,100 |
Fair Value | 64,877 | 71,100 |
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 | 203,631 | |
Ending balance | 172,402 | 203,631 |
Fair Value | 172,402 | 203,631 |
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 | 203,631 | |
Ending balance | 172,402 | 203,631 |
Fair Value | 172,402 | 203,631 |
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 | 275,941 | 287,308 |
Return on plan assets | (71,104) | 1,631 |
Company contributions | 15,657 | 11,964 |
Benefits paid | (15,797) | (17,316) |
Employee contributions | 71 | 74 |
Settlements | (8,039) | (3,096) |
Currency translation impact | (24,453) | (4,624) |
Ending balance | 172,276 | 275,941 |
Fair Value | 172,276 | 275,941 |
Foreign Plan | Hierarchial Level 1 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 2,264 | |
Ending balance | 2,134 | 2,264 |
Fair Value | 2,134 | 2,264 |
Foreign Plan | Hierarchial Level 2 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 200,786 | |
Ending balance | 120,767 | 200,786 |
Fair Value | 120,767 | 200,786 |
Foreign Plan | Hierarchial Level 3 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 72,891 | |
Ending balance | 49,375 | 72,891 |
Fair Value | 49,375 | 72,891 |
Foreign Plan | Cash and Cash Equivalents | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 2,264 | |
Ending balance | 2,134 | 2,264 |
Fair Value | 2,134 | 2,264 |
Foreign Plan | Cash and Cash Equivalents | Hierarchial Level 1 | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 2,264 | |
Ending balance | 2,134 | 2,264 |
Fair Value | 2,134 | 2,264 |
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 | 2,516 | |
Ending balance | 0 | 2,516 |
Fair Value | 0 | 2,516 |
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 | 2,516 | |
Ending balance | 0 | 2,516 |
Fair Value | 0 | 2,516 |
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 | 2,609 | |
Ending balance | 0 | 2,609 |
Fair Value | 0 | 2,609 |
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 | 2,609 | |
Ending balance | 0 | 2,609 |
Fair Value | 0 | 2,609 |
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 | 115,450 | |
Ending balance | 65,650 | 115,450 |
Fair Value | 65,650 | 115,450 |
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 | 115,450 | |
Ending balance | 65,650 | 115,450 |
Fair Value | 65,650 | 115,450 |
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 | Liability Driven Investment | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 25,387 | |
Ending balance | 20,849 | 25,387 |
Fair Value | 20,849 | 25,387 |
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 | 25,387 | |
Ending balance | 20,849 | 25,387 |
Fair Value | 20,849 | 25,387 |
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 | 54,824 | |
Ending balance | 34,268 | 54,824 |
Fair Value | 34,268 | 54,824 |
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 | 54,824 | |
Ending balance | 34,268 | 54,824 |
Fair Value | 34,268 | 54,824 |
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 | 54,896 | |
Ending balance | 32,313 | 54,896 |
Fair Value | 32,313 | 54,896 |
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 | 32,313 | |
Fair Value | 32,313 | |
Foreign Plan | Other types | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 17,995 | |
Ending balance | 17,062 | 17,995 |
Fair Value | 17,062 | 17,995 |
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 | 17,995 | |
Ending balance | 17,062 | 17,995 |
Fair Value | 17,062 | 17,995 |
Netherlands | Buy-in Contracts | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 24,300 | |
Ending balance | 15,700 | 24,300 |
Fair Value | 15,700 | 24,300 |
United Kingdom | Buy-in Contracts | ||
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Beginning balance | 30,600 | |
Ending balance | 16,600 | 30,600 |
Fair Value | $ 16,600 | $ 30,600 |
Pension and Postretirement B_13
Pension and Postretirement Benefits (Plan Assets by Percentage Allocation) (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
United States | Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 65% | |
Pension Plan | United States | Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 1% | 1% |
Plan assets, actual allocation (as a percent) | 1% | 1% |
Pension Plan | United States | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 34% | 42% |
Plan assets, actual allocation (as a percent) | 34% | 42% |
Pension Plan | United States | Global Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 20% | 27% |
Plan assets, actual allocation (as a percent) | 21% | 26% |
Pension Plan | United States | Global Real Assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 14% | 15% |
Plan assets, actual allocation (as a percent) | 13% | 16% |
Pension Plan | United States | Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 65% | 57% |
Plan assets, actual allocation (as a percent) | 65% | 57% |
Pension Plan | United States | Diversified Credit | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 14% | 15% |
Plan assets, actual allocation (as a percent) | 18% | 15% |
Pension Plan | United States | Liability Driven Investment | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 51% | 42% |
Plan assets, actual allocation (as a percent) | 47% | 42% |
Pension Plan | Foreign Plan | Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 1% | 0% |
Plan assets, actual allocation (as a percent) | 1% | 0% |
Pension Plan | Foreign Plan | Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 0% | 2% |
Plan assets, actual allocation (as a percent) | 0% | 2% |
Pension Plan | Foreign Plan | Global Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 0% | 1% |
Plan assets, actual allocation (as a percent) | 0% | 1% |
Pension Plan | Foreign Plan | North American Companies | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 0% | 1% |
Plan assets, actual allocation (as a percent) | 0% | 1% |
Pension Plan | Foreign Plan | Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 50% | 51% |
Plan assets, actual allocation (as a percent) | 50% | 51% |
Pension Plan | Foreign Plan | Liability Driven Investment | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 12% | 9% |
Plan assets, actual allocation (as a percent) | 12% | 9% |
Pension Plan | Foreign Plan | U.K. Government Gilt Index | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 38% | 42% |
Plan assets, actual allocation (as a percent) | 38% | 42% |
Pension Plan | Foreign Plan | Other types | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 49% | 47% |
Plan assets, actual allocation (as a percent) | 49% | 47% |
Pension Plan | Foreign Plan | Multi-Asset Category | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 20% | 20% |
Plan assets, actual allocation (as a percent) | 20% | 20% |
Pension Plan | Foreign Plan | Buy-in Contracts | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 19% | 20% |
Plan assets, actual allocation (as a percent) | 19% | 20% |
Pension Plan | Foreign Plan | Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets, target allocation (as a percent) | 10% | 7% |
Plan assets, actual allocation (as a percent) | 10% | 7% |
Pension and Postretirement B_14
Pension and Postretirement Benefits (Accumulated and Projected Obligations) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Retirement Benefits [Abstract] | ||
Benefit Obligation | $ 529,531 | $ 230,688 |
Accumulated benefit obligation | 519,287 | 215,535 |
Fair value of plan assets | $ 401,285 | $ 59,232 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net earnings of Flowserve Corporation | $ 188,689 | $ 125,949 | $ 130,420 |
Dividends on restricted shares not expected to vest | 0 | 0 | 0 |
Earnings attributable to common and participating shareholders | $ 188,689 | $ 125,949 | $ 130,420 |
Weighted average shares: | |||
Common stock (in shares) | 130,591,000 | 130,277,000 | 130,373,000 |
Participating securities (in shares) | 39,000 | 28,000 | 22,000 |
Denominator for basic earnings per common share (in shares) | 130,630,000 | 130,305,000 | 130,395,000 |
Effect of potentially dilutive securities (in shares) | 685,000 | 552,000 | 655,000 |
Denominator for diluted earnings per common share (in shares) | 131,315,000 | 130,857,000 | 131,050,000 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 1.44 | $ 0.97 | $ 1 |
Diluted (in dollars per share) | $ 1.44 | $ 0.96 | $ 1 |
Antidilutive shares (in shares) | 118,334 | 156,578 | 375,203 |
Litigation Settlement, Expense | $ 14,800 | $ 10,000 | $ 15,800 |
Legal Matters and Contingenci_3
Legal Matters and Contingencies (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 claim site | Dec. 31, 2022 USD ($) site claim | Dec. 31, 2021 USD ($) claim | Dec. 31, 2020 USD ($) claim | |
Liability for Asbestos and Environmental Claims, Net [Roll Forward] | ||||
Beginning claims | 8,712 | 8,366 | 8,345 | |
New claims | 2,454 | 2,482 | 2,140 | |
Resolved claims | (2,204) | (2,211) | (2,203) | |
Other | (823) | 75 | 84 | |
Ending claims | 8,139 | 8,139 | 8,712 | 8,366 |
Litigation Settlement, Expense | $ | $ 14.8 | $ 10 | $ 15.8 | |
Payments For (Proceeds From) Insurance Settlements | $ | $ 4.2 | $ (4.7) | $ 4.8 | |
Number of former public waste disposal sites | site | 4 | 4 |
Legal Matters and Contingenci_4
Legal Matters and Contingencies - Asbestos Liability (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Liability for Asbestos and Environmental Claims, Net [Roll Forward] | |||
Beginning balance, January 1, | $ 94,423 | $ 99,530 | $ 97,979 |
Asbestos liability adjustments, net | 14,782 | 4,783 | 8,642 |
Cash payment activity | (5,733) | (7,521) | (8,445) |
Other, net | (4,820) | (2,369) | 1,354 |
Ending balance, December 31, | $ 98,652 | $ 94,423 | $ 99,530 |
Warranty Reserve (Details)
Warranty Reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |||
Balance — January 1 | $ 23,893 | $ 27,944 | $ 30,854 |
Accruals for warranty expense, net of adjustments | 17,342 | 19,179 | 21,701 |
Settlements made | (19,188) | (23,230) | (24,611) |
Balance — December 31 | $ 22,047 | $ 23,893 | $ 27,944 |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 13, 2014 | |
Dividends per share (in USD per share) | $ 0.80 | $ 0.80 | $ 0.80 | |
Treasury stock, shares acquired (in shares) | 0 | 1,057,115 | ||
Treasury Stock, Value, Acquired, Cost Method | $ 17,500,000 | $ 32,100,000 | ||
Remaining authorized repurchase amount | $ 96,100,000 | |||
Share repurchase program 2015 | ||||
Authorized repurchase amount | $ 500,000,000 | |||
Treasury stock, shares acquired (in shares) | 440,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
U.S. federal | $ 45,130 | $ 66,486 | $ 40,234 |
Foreign | 40,876 | 29,987 | 42,487 |
State and local | 6,177 | 1,478 | 5,894 |
Total current provision (benefit) | 92,183 | 97,951 | 88,615 |
Deferred: | |||
U.S. federal | (88,498) | (92,021) | (50,038) |
Foreign | (42,756) | (4,339) | 26,742 |
State and local | (4,568) | (4,185) | (3,902) |
Total deferred provision (benefit) | (135,822) | (100,545) | (27,198) |
Total provision (benefit) | (43,639) | (2,594) | 61,417 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Statutory federal income tax at 21% | 32,400 | 28,100 | 39,200 |
Base Erosion and Anti-abuse Tax | (7,600) | 7,600 | 0 |
Foreign impact, net | (22,300) | (158,000) | 100 |
Change in valuation allowances | (50,500) | 146,600 | 26,900 |
State and local income taxes, net | 1,600 | (2,700) | 2,000 |
Reversal of deferred tax liabilities following legal entity reorganizations | 0 | (22,600) | 0 |
Research and development credit | (1,000) | (3,600) | (5,200) |
Non-deductible items | 2,300 | 4,400 | 1,800 |
U.S. federal tax return to accrual adjustments, not separately disclosed in other categories | 1,800 | (800) | (1,600) |
Recognition of compensation costs related to restricted shares | 2,400 | (1,300) | 1,000 |
Intercompany profit in inventory | (2,000) | (300) | 300 |
Other, net | $ (700) | $ 0 | $ (3,100) |
Effective tax rate | (28.30%) | (1.90%) | 30.40% |
Base erosion and anti-abuse tax | $ 0 | ||
Unrecorded foreign undistributed earnings taxes | 24,500 | ||
Deferred tax assets related to: | |||
Net operating loss carryforwards | 183,541 | $ 200,196 | |
Credit and capital loss carryforwards | 197,774 | 185,832 | |
Warranty and accrued liabilities | 49,302 | 26,116 | |
Section 59(e) capitalized expenses | 54,486 | 43,434 | |
Other | 168,933 | 161,418 | |
Total deferred tax assets | 654,036 | 616,996 | |
Valuation allowances | (356,557) | (415,962) | |
Net deferred tax assets | 297,479 | 201,034 | |
Deferred tax liabilities related to: | |||
Goodwill and intangibles | (123,088) | (123,133) | |
Foreign undistributed earnings | (11,154) | (15,529) | |
Operating lease right-of-use-assets | (20,453) | (25,556) | |
Other | (1,395) | (1,936) | |
Total deferred tax liabilities | (156,090) | (166,154) | |
Deferred tax asset (liabilities), net | 141,389 | 34,880 | |
Operating loss carryforward | 1,475,000 | ||
Earnings before income taxes comprised: | |||
U.S. | 63,508 | (52,915) | $ 73,109 |
Foreign | 90,868 | 186,504 | 129,183 |
Total | 154,376 | 133,589 | 202,292 |
Reconciliation of the total gross amount of unrecognized tax benefits, excluding interest and penalities: | |||
Balance — | 49,900 | 54,800 | 40,600 |
Gross amount of increase (decrease) in unrecognized tax benefits resulting from tax positions taken: | |||
During a prior year | 5,400 | 8,000 | 3,800 |
During the current period | 5,800 | 4,500 | 11,100 |
Decreases in unrecognized tax benefits relating to: | |||
Settlements with taxing authorities | (5,500) | (10,200) | (200) |
Lapse of the applicable statute of limitations | (4,100) | (5,100) | (2,500) |
Increase (decrease) in unrecognized tax benefits relating to foreign currency translation adjustments | 2,000 | ||
Increase (decrease) in unrecognized tax benefits relating to foreign currency translation adjustments | (1,300) | (2,100) | |
Balance — | 50,200 | 49,900 | 54,800 |
Gross unrecognized tax benefits | 71,100 | ||
Gross unrecognized tax benefits, accrued interest and penalties | 20,900 | ||
Unrecognized tax benefits, if recognized, would favorably impact effective tax rate | 57,500 | ||
Unrecognized tax benefits minimum amount of estimated reduction within the next twelve months | 12,000 | ||
Deferred tax asset valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 415,962 | 287,410 | 266,414 |
Additions charged to cost and expenses | 36,822 | 178,203 | 49,950 |
Additions charged to other accounts - currency effects and other, net | (11,775) | (15,572) | (529) |
Deductions from reserve | (84,452) | (34,079) | (28,425) |
Balance at End of Year | 356,557 | $ 415,962 | $ 287,410 |
State and Local Jurisdiction | |||
Deferred tax liabilities related to: | |||
Operating loss carryforward | 19,800 | ||
Foreign Tax Authority | |||
Deferred tax assets related to: | |||
Other | 113,400 | ||
Deferred tax liabilities related to: | |||
Operating loss carryforward | 234,000 | ||
Tax credit carryforward | 93,500 | ||
Foreign tax credit carryforrward | 45,200 | ||
Capital loss carryforward | 100,000 | ||
Foreign Tax Authority | 2022-2023 Expiration | |||
Deferred tax liabilities related to: | |||
Tax credit carryforward | 132,100 | ||
Foreign Tax Authority | Hungary | |||
Deferred tax liabilities related to: | |||
Operating loss carryforward | 1,089,000 | ||
Foreign operating loss carryforward | $ 98,000 |
Business Segment Information (R
Business Segment Information (Reportable Segments) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segments | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of operating segments (in segments) | segments | 2 | ||
Summarized financial information of the reportable segments | |||
Sales to external customers | $ 3,615,120 | $ 3,541,060 | $ 3,728,134 |
Intersegment sales | 0 | 0 | 0 |
Segment operating income (loss) | 197,219 | 270,759 | 250,277 |
Depreciation and amortization | 90,953 | 99,822 | 100,753 |
Identifiable assets | 4,790,634 | 4,749,768 | 5,314,677 |
Capital expenditures | 76,287 | 54,936 | 57,405 |
Subtotal—Reportable Segments | |||
Summarized financial information of the reportable segments | |||
Sales to external customers | 3,615,120 | 3,541,060 | 3,728,134 |
Intersegment sales | 7,997 | 5,674 | 5,085 |
Segment operating income (loss) | 321,374 | 362,854 | 396,533 |
Depreciation and amortization | 68,585 | 72,380 | 74,339 |
Identifiable assets | 4,380,423 | 4,150,662 | 4,347,205 |
Capital expenditures | 51,473 | 33,858 | 35,757 |
Eliminations and All Other | |||
Summarized financial information of the reportable segments | |||
Sales to external customers | 0 | 0 | 0 |
Intersegment sales | (7,997) | (5,674) | (5,085) |
Segment operating income (loss) | (124,155) | (92,095) | (146,256) |
Depreciation and amortization | 22,368 | 27,442 | 26,414 |
Identifiable assets | 410,211 | 599,106 | 967,472 |
Capital expenditures | 24,814 | 21,078 | 21,648 |
FPD | |||
Summarized financial information of the reportable segments | |||
Sales to external customers | 2,518,000 | 2,468,098 | 2,673,705 |
Intersegment sales | 4,508 | 2,750 | 1,965 |
Segment operating income (loss) | 207,957 | 243,203 | 270,960 |
Depreciation and amortization | 49,654 | 51,094 | 52,390 |
Identifiable assets | 3,110,733 | 2,927,346 | 3,039,069 |
Capital expenditures | 34,295 | 21,575 | 21,714 |
FCD | |||
Summarized financial information of the reportable segments | |||
Sales to external customers | 1,097,120 | 1,072,962 | 1,054,429 |
Intersegment sales | 3,489 | 2,924 | 3,120 |
Segment operating income (loss) | 113,417 | 119,651 | 125,573 |
Depreciation and amortization | 18,931 | 21,286 | 21,949 |
Identifiable assets | 1,269,690 | 1,223,316 | 1,308,136 |
Capital expenditures | $ 17,178 | $ 12,283 | $ 14,043 |
Business Segment Information (S
Business Segment Information (Sales and Long-lived Assets by Geographic Area) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 3,615,120 | $ 3,541,060 | $ 3,728,134 |
Percentage | 100% | 100% | 100% |
Long-Lived Assets | $ 887,745 | $ 968,100 | $ 986,424 |
Percentage | 100% | 100% | 100% |
Sales Revenue, Goods, Net | Customer Concentration Risk | International Customers | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Percentage of net sales to international customers to total sales | 62% | 67% | 65% |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 1,536,961 | $ 1,376,771 | $ 1,463,680 |
Percentage | 42.50% | 38.90% | 39.30% |
Long-Lived Assets | $ 412,896 | $ 476,176 | $ 455,622 |
Percentage | 46.60% | 49.20% | 46.20% |
EMA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 1,210,436 | $ 1,270,326 | $ 1,385,245 |
Percentage | 33.50% | 35.90% | 37.20% |
Long-Lived Assets | $ 274,511 | $ 298,426 | $ 336,577 |
Percentage | 30.90% | 30.80% | 34.10% |
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% | ||
Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 524,952 | $ 557,314 | $ 535,440 |
Percentage | 14.50% | 15.70% | 14.40% |
Long-Lived Assets | $ 144,206 | $ 141,810 | $ 138,947 |
Percentage | 16.20% | 14.60% | 14.10% |
Asia Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 694,559 | $ 816,109 | $ 808,030 |
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% | ||
Other | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 342,771 | $ 336,649 | $ 343,769 |
Percentage | 9.50% | 9.50% | 9.10% |
Long-Lived Assets | $ 56,132 | $ 51,688 | $ 55,278 |
Percentage | 6.30% | 5.40% | 5.60% |
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% | ||
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 | 10% | 10% | 9% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance - January 1 | $ (559,026) | $ (603,760) | |
Other comprehensive income (loss) before reclassifications (3) | (81,660) | 35,484 | |
Amounts reclassified from AOCL | (1,286) | 9,250 | |
Other comprehensive income (loss) | (82,946) | 44,734 | $ (24,564) |
Balance - December 31 | (641,972) | (559,026) | (603,760) |
Net of tax | 1,286 | (9,250) | |
Foreign curency translation, taxes | (20,526) | (875) | 11,104 |
Foreign Currency Translation Items | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance - January 1 | (456,025) | (456,549) | |
Other comprehensive income (loss) before reclassifications (3) | (98,658) | 524 | |
Amounts reclassified from AOCL | 0 | 0 | |
Other comprehensive income (loss) | (98,658) | 524 | |
Balance - December 31 | (554,683) | (456,025) | (456,549) |
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 | (101,665) | (146,723) | |
Other comprehensive income (loss) before reclassifications (3) | 16,684 | 34,960 | |
Amounts reclassified from AOCL | (1,375) | 10,098 | |
Other comprehensive income (loss) | 15,309 | 45,058 | |
Balance - December 31 | (86,356) | (101,665) | (146,723) |
Amount of settlement of reclassification adjustment from accumulated other comprehensive income (loss) | (75) | (640) | |
Tax benefit (expense) | 8,423 | 3,365 | |
Net of tax | 1,375 | (10,098) | |
Cash flow hedging activity (2) | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance - January 1 | (1,336) | (488) | |
Other comprehensive income (loss) before reclassifications (3) | 314 | 0 | |
Amounts reclassified from AOCL | 89 | (848) | |
Other comprehensive income (loss) | 403 | (848) | |
Balance - December 31 | (933) | (1,336) | (488) |
Net of tax | (89) | 848 | |
Noncontrolling Interests | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Other comprehensive income (loss) | 1,253 | (1,302) | 769 |
Foreign currency translation adjustments, attributable to noncontrolling interest | 5,800 | 4,600 | 5,900 |
Noncontrolling Interests | Currency Swap | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Foreign curency translation, taxes | 49,000 | 17,700 | $ (13,800) |
Amortization of actuarial losses | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Reclassification from AOCI, before tax | (6,382) | (12,213) | |
Prior service costs | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Reclassification from AOCI, before tax | (591) | (610) | |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Amounts reclassified from AOCL | 89 | (848) | |
Reclassification from AOCI, before tax | (117) | 848 | |
Tax benefit (expense) | (28) | 0 | |
Net of tax | $ (89) | $ 848 |
Realignment and Transformatio_3
Realignment and Transformation Programs (Details) - USD ($) $ in Thousands | 12 Months Ended | 45 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 857 | $ 9,513 | $ 29,801 |
Non-Restructuring Charges | (1,022) | 12,978 | |
Total Realignment Charges | (165) | 22,491 | |
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 4,868 | 18,255 | |
Charges | 857 | 9,513 | 29,801 |
Ending Balance | 965 | 4,868 | 4,868 |
Subtotal—Reportable Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 857 | 9,513 | |
Non-Restructuring Charges | (687) | 8,475 | |
Total Realignment Charges | 170 | 17,988 | |
Restructuring Reserve [Roll Forward] | |||
Charges | 857 | 9,513 | |
All Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 0 | 0 | |
Non-Restructuring Charges | (335) | 4,503 | |
Total Realignment Charges | (335) | 4,503 | |
Restructuring Reserve [Roll Forward] | |||
Charges | 0 | 0 | |
Realignment Programs, 2020 | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | 95,000 | ||
Restructuring Charges | 29,801 | ||
Non-Restructuring Charges | 63,855 | ||
Total Realignment Charges | 93,656 | ||
Restructuring Reserve [Roll Forward] | |||
Charges | 29,801 | ||
Realignment Programs, 2020 | Subtotal—Reportable Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 29,817 | ||
Non-Restructuring Charges | 41,753 | ||
Total Realignment Charges | 71,570 | ||
Restructuring Reserve [Roll Forward] | |||
Charges | 29,817 | ||
Realignment Programs, 2020 | All Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | (16) | ||
Non-Restructuring Charges | 22,102 | ||
Total Realignment Charges | 22,086 | ||
Restructuring Reserve [Roll Forward] | |||
Charges | (16) | ||
FPD | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 768 | 8,711 | |
Non-Restructuring Charges | (382) | 6,571 | |
Total Realignment Charges | 386 | 15,282 | |
Restructuring Reserve [Roll Forward] | |||
Charges | 768 | 8,711 | |
FPD | Realignment Programs, 2020 | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 27,358 | ||
Non-Restructuring Charges | 36,074 | ||
Total Realignment Charges | 63,432 | ||
Restructuring Reserve [Roll Forward] | |||
Charges | 27,358 | ||
FCD | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 89 | 802 | |
Non-Restructuring Charges | (305) | 1,904 | |
Total Realignment Charges | (216) | 2,706 | |
Restructuring Reserve [Roll Forward] | |||
Charges | 89 | 802 | |
FCD | Realignment Programs, 2020 | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 2,459 | ||
Non-Restructuring Charges | 5,679 | ||
Total Realignment Charges | 8,138 | ||
Restructuring Reserve [Roll Forward] | |||
Charges | 2,459 | ||
Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 861 | 8,857 | 28,773 |
Non-Restructuring Charges | (505) | 7,989 | |
Total Realignment Charges | 356 | 16,846 | |
Restructuring Reserve [Roll Forward] | |||
Charges | 861 | 8,857 | 28,773 |
Cost of Sales | Subtotal—Reportable Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 861 | 8,857 | |
Non-Restructuring Charges | (444) | 7,399 | |
Total Realignment Charges | 417 | 16,256 | |
Restructuring Reserve [Roll Forward] | |||
Charges | 861 | 8,857 | |
Cost of Sales | All Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 0 | 0 | |
Non-Restructuring Charges | (61) | 590 | |
Total Realignment Charges | (61) | 590 | |
Restructuring Reserve [Roll Forward] | |||
Charges | 0 | 0 | |
Cost of Sales | Realignment Programs, 2020 | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 28,773 | ||
Non-Restructuring Charges | 26,266 | ||
Total Realignment Charges | 55,039 | ||
Restructuring Reserve [Roll Forward] | |||
Charges | 28,773 | ||
Cost of Sales | Realignment Programs, 2020 | Subtotal—Reportable Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 28,773 | ||
Non-Restructuring Charges | 25,685 | ||
Total Realignment Charges | 54,458 | ||
Restructuring Reserve [Roll Forward] | |||
Charges | 28,773 | ||
Cost of Sales | Realignment Programs, 2020 | All Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 0 | ||
Non-Restructuring Charges | 581 | ||
Total Realignment Charges | 581 | ||
Restructuring Reserve [Roll Forward] | |||
Charges | 0 | ||
Cost of Sales | FPD | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 768 | 8,046 | |
Non-Restructuring Charges | (530) | 6,203 | |
Total Realignment Charges | 238 | 14,249 | |
Restructuring Reserve [Roll Forward] | |||
Charges | 768 | 8,046 | |
Cost of Sales | FPD | Realignment Programs, 2020 | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 26,642 | ||
Non-Restructuring Charges | 24,877 | ||
Total Realignment Charges | 51,519 | ||
Restructuring Reserve [Roll Forward] | |||
Charges | 26,642 | ||
Cost of Sales | FCD | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 93 | 811 | |
Non-Restructuring Charges | 86 | 1,196 | |
Total Realignment Charges | 179 | 2,007 | |
Restructuring Reserve [Roll Forward] | |||
Charges | 93 | 811 | |
Cost of Sales | FCD | Realignment Programs, 2020 | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 2,131 | ||
Non-Restructuring Charges | 808 | ||
Total Realignment Charges | 2,939 | ||
Restructuring Reserve [Roll Forward] | |||
Charges | 2,131 | ||
Selling, general and administrative expense ("SG&A") | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | (4) | 656 | 1,028 |
Non-Restructuring Charges | (517) | 4,989 | |
Total Realignment Charges | (521) | 5,645 | |
Restructuring Reserve [Roll Forward] | |||
Charges | (4) | 656 | 1,028 |
Selling, general and administrative expense ("SG&A") | Subtotal—Reportable Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | (4) | 656 | |
Non-Restructuring Charges | (243) | 1,076 | |
Total Realignment Charges | (247) | 1,732 | |
Restructuring Reserve [Roll Forward] | |||
Charges | (4) | 656 | |
Selling, general and administrative expense ("SG&A") | All Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 0 | 0 | |
Non-Restructuring Charges | (274) | 3,913 | |
Total Realignment Charges | (274) | 3,913 | |
Restructuring Reserve [Roll Forward] | |||
Charges | 0 | 0 | |
Selling, general and administrative expense ("SG&A") | Realignment Programs, 2020 | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 1,028 | ||
Non-Restructuring Charges | 37,589 | ||
Total Realignment Charges | 38,617 | ||
Restructuring Reserve [Roll Forward] | |||
Charges | 1,028 | ||
Selling, general and administrative expense ("SG&A") | Realignment Programs, 2020 | Subtotal—Reportable Segments | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 1,044 | ||
Non-Restructuring Charges | 16,068 | ||
Total Realignment Charges | 17,112 | ||
Restructuring Reserve [Roll Forward] | |||
Charges | 1,044 | ||
Selling, general and administrative expense ("SG&A") | Realignment Programs, 2020 | All Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | (16) | ||
Non-Restructuring Charges | 21,521 | ||
Total Realignment Charges | 21,505 | ||
Restructuring Reserve [Roll Forward] | |||
Charges | (16) | ||
Selling, general and administrative expense ("SG&A") | FPD | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 0 | 665 | |
Non-Restructuring Charges | 148 | 368 | |
Total Realignment Charges | 148 | 1,033 | |
Restructuring Reserve [Roll Forward] | |||
Charges | 0 | 665 | |
Selling, general and administrative expense ("SG&A") | FPD | Realignment Programs, 2020 | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 716 | ||
Non-Restructuring Charges | 11,197 | ||
Total Realignment Charges | 11,913 | ||
Restructuring Reserve [Roll Forward] | |||
Charges | 716 | ||
Selling, general and administrative expense ("SG&A") | FCD | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | (4) | (9) | |
Non-Restructuring Charges | (391) | 708 | |
Total Realignment Charges | (395) | 699 | |
Restructuring Reserve [Roll Forward] | |||
Charges | (4) | (9) | |
Selling, general and administrative expense ("SG&A") | FCD | Realignment Programs, 2020 | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 328 | ||
Non-Restructuring Charges | 4,871 | ||
Total Realignment Charges | 5,199 | ||
Restructuring Reserve [Roll Forward] | |||
Charges | 328 | ||
Severance | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 118 | 1,131 | 16,571 |
Restructuring Reserve [Roll Forward] | |||
Charges | 118 | 1,131 | 16,571 |
Severance | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 122 | 964 | 16,324 |
Restructuring Reserve [Roll Forward] | |||
Charges | 122 | 964 | 16,324 |
Severance | Selling, general and administrative expense ("SG&A") | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | (4) | 167 | 247 |
Restructuring Reserve [Roll Forward] | |||
Charges | (4) | 167 | 247 |
Contract Termination | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 327 | 34 | 413 |
Restructuring Reserve [Roll Forward] | |||
Charges | 327 | 34 | 413 |
Contract Termination | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 327 | 34 | 413 |
Restructuring Reserve [Roll Forward] | |||
Charges | 327 | 34 | 413 |
Contract Termination | Selling, general and administrative expense ("SG&A") | |||
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 | 273 | 2,683 | 4,382 |
Restructuring Reserve [Roll Forward] | |||
Charges | 273 | 2,683 | 4,382 |
Asset Write-Downs | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 273 | 2,683 | 4,368 |
Restructuring Reserve [Roll Forward] | |||
Charges | 273 | 2,683 | 4,368 |
Asset Write-Downs | Selling, general and administrative expense ("SG&A") | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 0 | 0 | 14 |
Restructuring Reserve [Roll Forward] | |||
Charges | 0 | 0 | 14 |
Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 139 | 5,665 | 8,435 |
Restructuring Reserve [Roll Forward] | |||
Charges | 139 | 5,665 | 8,435 |
Other | Cost of Sales | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 139 | 5,176 | 7,668 |
Restructuring Reserve [Roll Forward] | |||
Charges | 139 | 5,176 | 7,668 |
Other | Selling, general and administrative expense ("SG&A") | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 0 | 489 | 767 |
Restructuring Reserve [Roll Forward] | |||
Charges | 0 | 489 | $ 767 |
Charges Expected to be Settled in Cash | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 584 | 6,829 | |
Restructuring Reserve [Roll Forward] | |||
Charges | 584 | 6,829 | |
Restructuring Cash Payment | |||
Restructuring Reserve [Roll Forward] | |||
Cash expenditures | (3,518) | (18,942) | |
Other Non-Cash Adjustments | |||
Restructuring Reserve [Roll Forward] | |||
Other non-cash adjustments, including currency | $ (969) | $ (1,274) |
Uncategorized Items - fls-20221
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2014-09 [Member] |