EX-99.2 3 a52321021ex99_2.htm EXHIBIT 99.2
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