Flowserve (FLS) 8-K Results of Operations and Financial Condition

Exhibit 99.2

PRELIMINARY CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
	December 31, 2019
(Amounts in thousands, except par value)	As Reported			Adjustments			As Revised
ASSETS
Current assets:
Cash and cash equivalents	$	670,980		$	-		$	670,980
Accounts receivable, net		795,538			-			795,538
Contract assets, net		272,914			-			272,914
Inventories, net		660,837			-			660,837
Prepaid expenses and other		105,101			1,377			106,478
Total current assets		2,505,370			1,377			2,506,747
Property, plant and equipment, net		572,175			(8,611	)		563,564
Operating lease right-of-use assets, net		186,218			-			186,218
Goodwill		1,193,010			-			1,193,010
Deferred taxes		54,879			-			54,879
Other intangible assets, net		180,805			-			180,805
Other assets, net		227,185			25,869			253,054
Total assets	$	4,919,642		$	18,635		$	4,938,277
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	447,582		$	-		$	447,582
Accrued liabilities		401,385			-			401,385
Contract liabilities		216,541			4,554			221,095
Debt due within one year		11,272			-			11,272
Operating lease liabilities		36,108			-			36,108
Total current liabilities		1,112,888			4,554			1,117,442
Long-term debt due after one year		1,365,977			-			1,365,977
Operating lease liabilities		151,523			-			151,523
Retirement obligations and other liabilities		473,295			57,699			530,994
Shareholders’ equity:
Common shares, $1.25 par value		220,991			-			220,991
Shares authorized – 305,000
Shares issued – 176,793
Capital in excess of par value		501,045			-			501,045
Retained earnings		3,695,862			(43,618	)		3,652,244
Treasury shares, at cost		(2,051,583	)		-			(2,051,583	)
Deferred compensation obligation		8,334			-			8,334
Accumulated other comprehensive loss		(584,292	)		-			(584,292	)
Total Flowserve Corporation shareholders' equity		1,790,357			(43,618	)		1,746,739
Noncontrolling interests		25,602			-			25,602
Total equity		1,815,959			(43,618	)		1,772,341
Total liabilities and equity	$	4,919,642		$	18,635		$	4,938,277

PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Amounts in thousands, except per share data)	Year Ended December 31, 2019									Year Ended December 31, 2018
	As Reported			Adjustments			As Revised			As Reported			Adjustments			As Revised
Sales	$	3,944,850		$	(5,153	)	$	3,939,697		$	3,832,666		$	3,033		$	3,835,699
Cost of sales		(2,649,480	)		(874	)		(2,650,354	)		(2,644,830	)		-			(2,644,830	)
Gross profit		1,295,370			(6,027	)		1,289,343			1,187,836			3,033			1,190,869
Selling, general and administrative expense		(899,813	)		(13,390	)		(913,203	)		(951,441	)		(22,869	)		(974,310	)
Net earnings from affiliates		10,483			-			10,483			11,143			-			11,143
Operating income		406,040			(19,417	)		386,623			247,538			(19,836	)		227,702
Interest expense		(54,980	)		-			(54,980	)		(58,160	)		-			(58,160	)
Interest income		8,409			-			8,409			6,465			-			6,465
Other income (expense), net		(17,619	)		-			(17,619	)		(19,569	)		-			(19,569	)
Earnings before income taxes		341,850			(19,417	)		322,433			176,274			(19,836	)		156,438
Provision for income taxes		(80,070	)		4,576			(75,494	)		(51,224	)		4,675			(46,549	)
Net earnings, including noncontrolling interests		261,780			(14,841	)		246,939			125,050			(15,161	)		109,889
Less: Net earnings attributable to noncontrolling interests		(8,112	)		-			(8,112	)		(5,379	)		-			(5,379	)
Net earnings attributable to Flowserve Corporation	$	253,668		$	(14,841	)	$	238,827		$	119,671		$	(15,161	)	$	104,510
Net earnings per share:
Basic	$	1.94		$	(0.11	)	$	1.82		$	0.91		$	(0.12	)	$	0.80
Diluted		1.93			(0.11	)		1.81			0.91			(0.12	)		0.80
Shares outstanding:
Basic		131,034			-			131,034			130,823			-			130,823
Diluted		131,719			-			131,719			131,271			-			131,271

PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Amounts in thousands, except per share data)	Nine Months Ended September 30, 2019
	As Reported			Adjustments			As Revised
Sales	$	2,876,679		$	(5,162	)	$	2,871,517
Cost of sales		(1,930,881	)		(875	)		(1,931,756	)
Gross profit		945,798			(6,037	)		939,761
Selling, general and administrative expense		(655,046	)		(10,579	)		(665,625	)
Net earnings from affiliates		8,057			-			8,057
Operating income		298,809			(16,616	)		282,193
Interest expense		(42,025	)		-			(42,025	)
Interest income		6,494			-			6,494
Other income (expense), net		(8,098	)		(7,055	)		(15,153	)
Earnings before income taxes		255,180			(23,671	)		231,509
Provision for income taxes		(64,646	)		6,039			(58,607	)
Net earnings, including noncontrolling interests		190,534			(17,632	)		172,902
Less: Net earnings attributable to noncontrolling interests		(6,659	)		-			(6,659	)
Net earnings attributable to Flowserve Corporation	$	183,875		$	(17,632	)	$	166,243
Net earnings per share:
Basic	$	1.40		$	(0.13	)	$	1.27
Diluted		1.40			(0.13	)		1.26
Shares outstanding:
Basic		131,092			-			131,092
Diluted		131,697			-			131,697

PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Amounts in thousands, except per share data)	Three Months Ended September 30, 2019
	As Reported			Adjustments			As Revised
Sales	$	996,544		$	(835	)	$	995,709
Cost of sales		(662,855	)		(1	)		(662,856	)
Gross profit		333,689			(836	)		332,853
Selling, general and administrative expense		(226,216	)		(4,146	)		(230,362	)
Net earnings from affiliates		2,087			-			2,087
Operating income		109,560			(4,982	)		104,578
Interest expense		(13,981	)		-			(13,981	)
Interest income		2,253			-			2,253
Other income (expense), net		(1,622	)		(6,855	)		(8,477	)
Earnings before income taxes		96,210			(11,837	)		84,373
Provision for income taxes		(25,647	)		3,237			(22,410	)
Net earnings, including noncontrolling interests		70,563			(8,600	)		61,963
Less: Net earnings attributable to noncontrolling interests		(2,121	)		-			(2,121	)
Net earnings attributable to Flowserve Corporation	$	68,442		$	(8,600	)	$	59,842
Net earnings per share:
Basic	$	0.52		$	(0.07	)	$	0.46
Diluted		0.52			(0.07	)		0.45
Shares outstanding:
Basic		131,145			-			131,145
Diluted		131,846			-			131,846

PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Amounts in thousands, except per share data)	Three Months Ended June 30, 2020									Three Months Ended June 30, 2019
	As Reported			Adjustments			As Revised			As Reported			Adjustments			As Revised
Sales	$	924,965		$	47		$	925,012		$	990,084		$	(85	)	$	989,999
Cost of sales		(657,805	)		2,499			(655,306	)		(672,051	)		-			(672,051	)
Gross profit		267,160			2,546			269,706			318,033			(85	)		317,948
Selling, general and administrative expense		(227,358	)		(1,984	)		(229,342	)		(223,676	)		(5,170	)		(228,846	)
Net earnings from affiliates		3,086			-			3,086			3,661			-			3,661
Operating income		42,888			562			43,450			98,018			(5,255	)		92,763
Interest expense		(12,900	)		(35	)		(12,935	)		(14,013	)		-			(14,013	)
Interest income		1,149			-			1,149			2,218			-			2,218
Other income (expense), net		(14,941	)		(1	)		(14,942	)		(3,336	)		(200	)		(3,536	)
Earnings before income taxes		16,196			526			16,722			82,887			(5,455	)		77,432
Provision for income taxes		(5,409	)		560			(4,849	)		(22,413	)		1,299			(21,114	)
Net earnings, including noncontrolling interests		10,787			1,086			11,873			60,474			(4,156	)		56,318
Less: Net earnings attributable to noncontrolling interests		(2,142	)		-			(2,142	)		(2,302	)		-			(2,302	)
Net earnings attributable to Flowserve Corporation	$	8,645		$	1,086		$	9,731		$	58,172		$	(4,156	)	$	54,016
Net earnings per share:
Basic	$	0.07		$	0.01		$	0.07		$	0.44		$	(0.03	)	$	0.41
Diluted		0.07			0.01			0.07			0.44			(0.03	)		0.41
Shares outstanding:
Basic		130,170			-			130,170			131,147			-			131,147
Diluted		130,730			-			130,730			131,754			-			131,754

PRELIMINARY CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(Amounts in thousands, except per share data)	Three Months Ended March 31, 2020									Three Months Ended March 31, 2019
	As Reported			Adjustments			As Revised			As Reported			Adjustments			As Revised
Sales	$	894,457		$	(944	)	$	893,513		$	890,051		$	(4,242	)	$	885,809
Cost of sales		(628,480	)		1,426			(627,054	)		(595,975	)		(874	)		(596,849	)
Gross profit		265,977			482			266,459			294,076			(5,116	)		288,960
Selling, general and administrative expense		(243,621	)		(1,831	)		(245,452	)		(205,154	)		(1,263	)		(206,417	)
Net earnings from affiliates		3,196			1			3,197			2,309			-			2,309
Operating income		25,552			(1,348	)		24,204			91,231			(6,379	)		84,852
Interest expense		(12,963	)		-			(12,963	)		(14,031	)		-			(14,031	)
Interest income		1,749			-			1,749			2,023			-			2,023
Other income (expense), net		23,462			-			23,462			(3,140	)		-			(3,140	)
Earnings before income taxes		37,800			(1,348	)		36,452			76,083			(6,379	)		69,704
Provision for income taxes		(36,310	)		656			(35,654	)		(16,587	)		1,504			(15,083	)
Net earnings, including noncontrolling interests		1,490			(692	)		798			59,496			(4,875	)		54,621
Less: Net earnings attributable to noncontrolling interests		(2,100	)		-			(2,100	)		(2,235	)		-			(2,235	)
Net earnings (loss) attributable to Flowserve Corporation	$	(610	)	$	(692	)	$	(1,302	)	$	57,261		$	(4,875	)	$	52,386
Net earnings per share:
Basic	$	(0.00	)	$	(0.01	)	$	(0.01	)	$	0.44		$	(0.04	)	$	0.40
Diluted		(0.00	)		(0.01	)		(0.01	)		0.44			(0.04	)		0.40
Shares outstanding:
Basic		130,731			-			130,731			130,982			-			130,982
Diluted		130,731			-			130,731			131,532			-			131,532

PRELIMINARY SELECTED FINANCIAL DATA
(Unaudited)
	Years Ended December 31,
(Amounts in thousands, except per share data)	2019		2018		2017			2016		2015
As Reported
Net earnings attributable to Flowserve Corporation	$	253,668	$	119,671	$	2,652		$	132,455	$	258,411
Net earnings per share - Basic	$	1.94	$	0.91	$	0.02		$	1.02	$	1.94
Net earnings per share - Diluted		1.93		0.91		0.02			1.01		1.93
As Revised
Net earnings attributable to Flowserve Corporation	$	238,828	$	104,510	$	(10,234	)	$	127,502	$	252,973
Net earnings per share - Basic	$	1.82	$	0.80	$	(0.08	)	$	0.98	$	1.90
Net earnings per share - Diluted		1.81		0.80		(0.08	)		0.97		1.89