10-Q/A

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q/A

(Mark One)

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2017

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROMto.

Commission File No. 1-13179

FLOWSERVE CORPORATION

(Exact name of registrant as specified in its charter)

New York	31-0267900
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
5215 N. O’Connor Blvd., Suite 2300, Irving, Texas	75039
(Address of principal executive offices)	(Zip Code)

	(972) 443-6500
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. þ Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). þ Yes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “accelerated filer,” “large accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer þ	Accelerated filer ¨	Non-accelerated filer ¨ (do not check if a smaller reporting company)
Smaller reporting company ¨	Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ¨ Yes þ No

As of April 25, 2017, there were 130,618,272shares of the issuer’s common stock outstanding.

FLOWSERVE CORPORATION

FORM 10-Q

TABLE OF CONTENTS

	Page
	No.
PART I – FINANCIAL INFORMATION
Item 1.       Financial Statements.
Condensed Consolidated Statements of Income and Condensed Consolidated Statements of Comprehensive Income – Three Months Ended March 31, 2017 and 2016 (unaudited)	2
Condensed Consolidated Balance Sheets – March 31, 2017 and December 31, 2016 (unaudited)	3
Condensed Consolidated Statements of Cash Flows – Three Months Ended March 31, 2017 and 2016 (unaudited)	4
Notes to Condensed Consolidated Financial Statements (unaudited)	5
Item 2.       Management’s Discussion and Analysis of Financial Condition and Results of Operations.	18
Item 3.       Quantitative and Qualitative Disclosures About Market Risk.	27
Item 4.       Controls and Procedures.	27
PART II – OTHER INFORMATION
Item 1.       Legal Proceedings.	29
Item 1A.    Risk Factors.	29
Item 6.       Exhibits.	29
SIGNATURES	30
EX-31.1
EX-31.2
EX-32.1
EX-32.2
EX-101 INSTANCE DOCUMENT
EX-101 SCHEMA DOCUMENT
EX-101 CALCULATION LINKBASE DOCUMENT
EX-101 LABELS LINKBASE DOCUMENT
EX-101 PRESENTATION LINKBASE DOCUMENT
EX-101 DEFINITION LINKBASE DOCUMENT

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EXPLANATORY NOTE

Flowserve Corporation is filing this amendment on Form 10-Q/A to its Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 , originally filed with the Securities and Exchange Commission on May 1, 2017 ("the original filing") to make the following changes:

• To make revisions for immaterial errors in the condensed consolidated financial statements previously issued in the original filing in Item 1. Financial Statements, Item 2. Management's Discussion and Analysis and Item 3. Qualitative and Quantitative Disclosures About Market Risk.

• To amend Item 4. Controls and Procedures related to the effectiveness of our disclosure controls and procedures and internal control over financial reporting.

On July 27, 2017 , we announced that during the 2017 second quarter we determined that material weaknesses existed in our internal control structure for the year ended December 31, 2016 and continued through the end of the second quarter of 2017. Item 4. Controls and Procedures has been amended herein to reflect that change.

Additionally, certain immaterial accounting errors were identified in prior period financial statements for prior periods through the first quarter of 2017 , which occurred primarily at two non-U.S. sites, and principally involved certain inventory, accounts receivable, cost of sales, and selling, general and administrative balances. While not material to any prior annual or quarterly period, in order to facilitate comparisons among periods, we have revised our condensed consolidated financial statements included in this amendment, as well as an amendment to our Form 10-K for the fiscal year ended December 31, 2016, to reflect the revisions to our consolidated financial statements for the fiscal years ended December 31, 2016, 2015 and 2014 and to the unaudited condensed consolidated financial statements for the fiscal quarters ended March 31, 2017 and 2016.

For additional discussion regarding the revision adjustments, see Note 2 of the condensed consolidated financial statements and "Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations" in this quarterly report on Form 10-Q/A. This amendment has not been updated or amended to give effect to any subsequent events beyond those that existed as of the original filing date and should thus be read in conjunction with the original filing and any of the Company's other filings with the Securities Exchange Commission ("SEC") subsequent to the original filing, together with any amendments to those filings.

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.

1

FLOWSERVE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(Amounts in thousands, except per share data)	Three Months Ended March 31,
	2017			2016
Sales	$	866,318		$	946,221
Cost of sales	(597,880		)	(641,067		)
Gross profit	268,438			305,154
Selling, general and administrative expense	(222,084		)	(237,549		)
Net earnings from affiliates	3,455			3,319
Operating income	49,809			70,924
Interest expense	(14,696		)	(14,568		)
Interest income	624			676
Other expense, net	(11,128		)	(5,564		)
Earnings before income taxes	24,609			51,468
Provision for income taxes	(5,320		)	(17,177		)
Net earnings, including noncontrolling interests	19,289			34,291
Less: Net earnings attributable to noncontrolling interests	(239		)	(425		)
Net earnings attributable to Flowserve Corporation	$	19,050		$	33,866
Net earnings per share attributable to Flowserve Corporation common shareholders:
Basic	$	0.15		$	0.26
Diluted	0.15			0.26
Cash dividends declared per share	$	0.19		$	0.19

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(Amounts in thousands)	Three Months Ended March 31,
	2017			2016
Net earnings, including noncontrolling interests	$	19,289		$	34,291
Other comprehensive income:
Foreign currency translation adjustments, net of taxes of $(20,074) and $(19,359) respectively	33,786			32,499
Pension and other postretirement effects, net of taxes of $(356) and $(742), respectively	484			2,786
Cash flow hedging activity, net of taxes of $(34) and $(264), respectively	103			643
Other comprehensive income	34,373			35,928
Comprehensive income, including noncontrolling interests	53,662			70,219
Comprehensive income attributable to noncontrolling interests	(772		)	(1,185		)
Comprehensive income attributable to Flowserve Corporation	$	52,890		$	69,034

See accompanying notes to condensed consolidated financial statements.

2

FLOWSERVE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Amounts in thousands, except par value)	March 31,			December 31,
	2017			2016
ASSETS
Current assets:
Cash and cash equivalents	$	325,783		$	367,162
Accounts receivable, net of allowance for doubtful accounts of $52,072 and $51,920, respectively	831,362			882,638
Inventories, net	940,000			897,690
Prepaid expenses and other	154,633			150,199
Total current assets	2,251,778			2,297,689
Property, plant and equipment, net of accumulated depreciation of $911,160 and $882,151, respectively	715,563			724,805
Goodwill	1,211,153			1,205,054
Deferred taxes	82,290			83,722
Other intangible assets, net	216,724			214,527
Other assets, net	186,668			183,126
Total assets	$	4,664,176		$	4,708,923
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	354,566		$	412,087
Accrued liabilities	653,686			680,986
Debt due within one year	90,632			85,365
Total current liabilities	1,098,884			1,178,438
Long-term debt due after one year	1,477,549			1,485,258
Retirement obligations and other liabilities	415,844			407,839
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	481,443			491,848
Retained earnings	3,595,368			3,598,396
Treasury shares, at cost – 46,575 and 46,980 shares, respectively	(2,063,085		)	(2,078,527		)
Deferred compensation obligation	6,641			8,507
Accumulated other comprehensive loss	(590,948		)	(624,788		)
Total Flowserve Corporation shareholders’ equity	1,650,410			1,616,427
Noncontrolling interests	21,489			20,961
Total equity	1,671,899			1,637,388
Total liabilities and equity	$	4,664,176		$	4,708,923

See accompanying notes to condensed consolidated financial statements.

3

FLOWSERVE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Amounts in thousands)	Three Months Ended March 31,
	2017			2016
Cash flows – Operating activities:
Net earnings, including noncontrolling interests	$	19,289		$	34,291
Adjustments to reconcile net earnings to net cash provided (used) by operating activities:
Depreciation	24,586			24,505
Amortization of intangible and other assets	4,039			4,123
Stock-based compensation	11,307			15,957
Foreign currency and other non-cash adjustments	319			10,238
Change in assets and liabilities, net of acquisition:
Accounts receivable, net	67,466			91,399
Inventories, net	(27,110		)	(67,918		)
Prepaid expenses and other	(2,436		)	3,960
Other assets, net	(5,074		)	(9,095		)
Accounts payable	(60,740		)	(89,840		)
Accrued liabilities and income taxes payable	(36,010		)	(16,592		)
Retirement obligations and other	2,253			844
Net deferred taxes	6,038			(10,497		)
Net cash flows provided (used) by operating activities	3,927			(8,625		)
Cash flows – Investing activities:
Capital expenditures	(15,862		)	(20,212		)
Proceeds from disposal of assets and other	367			101
Net cash flows used by investing activities	(15,495		)	(20,111		)
Cash flows – Financing activities:
Payments on long-term debt	(15,000		)	(15,000		)
Proceeds under other financing arrangements	5,715			14,009
Payments under other financing arrangements	(1,314		)	(11,017		)
Payments related to tax withholding for stock-based compensation	(3,198		)	(2,356		)
Payments of dividends	(24,785		)	(23,415		)
Other	(244		)	(142		)
Net cash flows used by financing activities	(38,826		)	(37,921		)
Effect of exchange rate changes on cash	9,015			7,591
Net change in cash and cash equivalents	(41,379		)	(59,066		)
Cash and cash equivalents at beginning of period	367,162			366,444
Cash and cash equivalents at end of period	$	325,783		$	307,378

See accompanying notes to condensed consolidated financial statements.

4

FLOWSERVE CORPORATION

(Unaudited)

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of Presentation and Accounting Policies

Basis of Presentation

The accompanying condensed consolidated balance sheet as of March 31, 2017, the related condensed consolidated statements of income and comprehensive income for the three months ended March 31, 2017 and 2016, and the condensed consolidated statements of cash flows for the three months ended March 31, 2017 and 2016, of Flowserve Corporation are unaudited. In management’s opinion, all adjustments comprising normal recurring adjustments necessary for fair statement of such condensed consolidated financial statements have been made. Where applicable, prior period information has been updated to conform to current year presentation.

The accompanying condensed consolidated financial statements and notes in this Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017 ("Quarterly Report") are presented as permitted by Regulation S-X and do not contain certain information included in our annual financial statements and notes thereto. Accordingly, the accompanying condensed consolidated financial information should be read in conjunction with the audited consolidated financial statements presented in our Amended Annual Report on Form 10-K/A for the year ended December 31, 2016 ("2016 Annual Report").

Revision to Previously Reported Financial Information - In the second quarter of 2017, we identified accounting errors focused mainly at two of our non-U.S. sites in the inventory, accounts receivable, cost of sales and selling, general and administrative expense balances for prior periods through the first quarter of 2017. We have assessed these errors, individually and in the aggregate, and concluded that they are not material to any prior annual or interim period. However, to facilitate comparisons among periods we have revised our previously issued audited consolidated financial information for fiscal years ended December 31, 2014, 2015 and 2016 and unaudited condensed consolidated financial information for the interim periods of 2016 and the three months ended March 31, 2017. We also corrected the timing of immaterial previously recorded out-of-period adjustments and reflected them in the revised prior period financial statements, where applicable.  Prior periods not presented herein will be revised, as applicable, in future filings. See Note 2 for more information.

Venezuela – Our operations in Venezuela primarily consist of a service center that performs service and repair activities. Our Venezuelan subsidiary's sales for the three months ended March 31, 2017 represented less than 0.5% of consolidated sales and its assets at March 31, 2017 represented less than 0.5% of total consolidated assets. Assets primarily consisted of United States ("U.S.") dollar-denominated monetary assets and bolivar-denominated non-monetary assets at March 31, 2017 . In addition, certain of our operations in other countries sell equipment and parts that are typically denominated in U.S. dollars directly to Venezuelan customers. In the third quarter of 2016 we recorded a charge of $73.5 million to selling, general and administrative expense ("SG&A") to fully reserve for those potentially uncollectible accounts receivable and a charge to cost of sales ("COS") of $1.9 million to reserve for related net inventory exposures. We continue to pursue payments from our Venezuelan customer.

At March 31, 2017 the DICOM exchange rate was 709.7 bolivars to the U.S. dollar, compared with the official exchange rate of 10.0 bolivars to the U.S. dollar. As of March 31, 2017, we believe the DICOM exchange rate continues to be the most appropriate rate to remeasure the U.S. dollar value of the assets, liabilities and results of operations of our Venezuelan subsidiary.

Valuation of Goodwill, Indefinite-Lived Intangible Assets and Other Long-Lived Assets – As discussed in Note 1 to our consolidated financial statements included in our 2016 Annual Report, the value of our 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.

We did not record an impairment of goodwill in 2016, 2015 or 2014; however at December 31, 2016 the estimated fair value of our Engineered Product Operations ("EPO") and Industrial Product Division ("IPD") reporting units reduced significantly due to broad-based capital spending declines and heightened pricing pressure experienced in the oil and gas markets which are anticipated to continue in the near to mid-term. Although we concluded that there is no impairment on the goodwill associated with our EPO and IPD reporting units as of December 31, 2016, we will continue to closely monitor their performance and related market conditions for future indicators of potential impairment and reassess accordingly.

Accounting Policies

Significant accounting policies, for which no significant changes have occurred in the three months ended March 31, 2017, are detailed in Note 1 to our consolidated financial statements included in our 2016 Annual Report.

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Accounting Developments

Pronouncements Implemented

In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." The ASU updates represent changes to simplify the subsequent measurement of inventory. Previous to the issuance of this ASU, ASC 330 required that an entity measure inventory at the lower of cost or market. The amendments of ASU 2015-11 updates that “market” requirement to “net realizable value,” which is defined by the ASU as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Our adoption of ASU No. 2015-11 effective January 1, 2017 did not have an impact on our consolidated financial condition and results of operations.

In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting." The ASU affects the accounting for employee share-based payment transactions as it relates to accounting for income taxes, accounting for forfeitures, and statutory tax withholding requirements. We adopted the provisions of ASU 2016-09 as of January 1, 2017. The adoption resulted in the recognition of approximately $1 million of tax expense in our provision of income taxes and an approximately $3 million one-time, cumulative adjustment to beginning retained earnings related to the change in our accounting policy for estimated forfeitures and share cancellations. In addition, in our statements of cash flows we reclassified cash outflows for employee taxes paid from operating to financing and elected to reclassify cash impacts due to excess tax deficiencies and benefits from financing to operating, which resulted in a net reclassification of approximately $2 million of cash flows used from operating to financing for the three months ended March 31, 2016.

Pronouncements Not Yet Implemented

In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" which supersedes most of the revenue recognition requirements in "Revenue Recognition (Topic 605)." The standard is principle-based and provides a five-step model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Companies are permitted to adopt the new standard using one of two transition methods. Under the full retrospective method, the requirements of the new standard are applied to contracts for each prior reporting period presented and the cumulative effect of applying the standard is recognized in the earliest period presented. Under the modified retrospective method the requirements of the new standard are applied to contracts that are open as of January 1, 2018, the required date of adoption and the cumulative effect of applying the standard is recognized as an adjustment to beginning retained earnings in that same year. The standard also includes significantly expanded disclosure requirements for revenue. Since 2014, the FASB has issued several updates to Topic 606.

We are currently evaluating the impact of ASU No. 2014-09 and all related ASU's on our consolidated financial condition and results of operations. We plan to adopt the new revenue guidance effective January 1, 2018 using the modified retrospective method for transition. In 2015, we established a cross-functional implementation team consisting of representatives from across all of our reportable segments to begin the process of analyzing the impact of the standard on our contracts. The preliminary results of our evaluation, which is still in process, indicate that one of the changes upon adoption may be potentially increased “over-time” revenue recognition. Historically, revenue recognized under the percentage of completion method is less than 7% of our consolidated sales. We also anticipate changes to the consolidated balance sheet related to accounts receivable, contract assets and contract liabilities. Additionally, we are in the process of evaluating and designing the necessary changes to our business processes, systems and controls to support recognition and disclosure under the new standard. We are continuing our evaluation to determine the impact on our consolidated financial condition and results of operations.

In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." The ASU requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value with changes in fair value recognized in net income. The ASU also requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The requirement to disclose the method(s) and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost on the balance sheet has been eliminated by this ASU. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are currently evaluating the impact of ASU No. 2016-01 on our consolidated financial condition and results of operations.

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”.  The ASU requires that organizations that lease assets recognize assets and liabilities on the balance sheet for the rights and obligations created by those leases.  The ASU will affect the presentation of lease related expenses on the income statement and statement of cash flows and will increase the required disclosures related to leases.  This ASU is effective for annual periods beginning after December 15, 2018, including interim

6

periods within those fiscal years with early adoption permitted.  We are currently evaluating the impact of ASU No. 2016-02 on our consolidated financial condition and results of operations.  Although we are continuing to evaluate, upon initial qualitative evaluation, we believe a key change upon adoption will be the balance sheet recognition of leased assets and liabilities. Based on our qualitative evaluation to date, we believe that any changes in income statement recognition will not be material.

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments." The amendments in this ASU replace the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We are currently evaluating the impact of ASU No. 2016-13 on our consolidated financial condition and results of operations.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments - A consensus of the FASB Emerging Issues Task Force.” The update was issued with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230 and other topics. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of ASU No. 2016-15 is not expected to have a material impact on our consolidated financial condition and results of operations.

In October 2016, the FASB issued ASU No. 2016-16, "Income Taxes (Topic 740) Intra-Entity Transfers of Assets Other Than Inventory." The ASU guidance requires the recognition of the income tax consequences of an intercompany asset transfer, other than transfers of inventory, when the transfer occurs. For intercompany transfers of inventory, the income tax effects will continue to be deferred until the inventory has been sold to a third party. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the impact of ASU No. 2016-16 on our consolidated financial condition and results of operations.

In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash." The amendments in this ASU require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The ASU is effective for reporting periods beginning after December 15, 2017, including interim periods with those fiscal years. The adoption of ASU No. 2016-18 is not expected to have a material impact on our consolidated financial condition and results of operations.

In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): "Clarifying the Definition of a Business." The ASU clarifies the definition of a business and provides guidance on evaluating as to whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition clarification as outlined in this ASU affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments of the ASU are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The adoption of ASU No. 2017-01 is not expected to have a material impact on our consolidated financial condition and results of operations.

In January 2017, the FASB issued ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The amendments in this ASU allow companies to apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The amendments of the ASU are effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We are currently evaluating the impact of ASU No. 2017- 04 on our consolidated financial condition and results of operations.

In February 2017, the FASB issued ASU No. 2017-05, "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets." The FASB issued this ASU to clarify the scope of subtopic 610-20, which the FASB had failed to define in its issuance of ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." ASU No. 2017-05 will be effective concurrently with ASU No. 2014-09. Similarly to ASU 2014-09, we are continuing our evaluation of ASU No. 2017-05 to determine the impact on our consolidated financial condition and results of operations.

On March 10, 2017, the FASB issued ASU No. 2017-07, "Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The amendments of this ASU provide additional guidance intended to improve the presentation of net benefit costs pension costs and net periodic postretirement costs. The amendments of the ASU must be applied to annual reporting periods beginning after December 15, 2017, and to quarterly periods in 2018, early adoption of the standard is permitted. We are currently evaluating the impact of ASU No. 2017- 07 on our consolidated financial condition and results of operations.

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2. Revision to Previously Reported Financial Information

In the second quarter of 2017, we identified accounting errors focused mainly at two of our non-U.S. sites in the inventory, accounts receivable, cost of sales and selling, general and administrative expense balances for prior periods through the first quarter of 2017. We have assessed these errors, individually and in the aggregate, and concluded that they are not material to any prior annual or interim period. However, to facilitate comparisons among periods we have revised our previously issued audited consolidated financial information for fiscal years ended December 31, 2014, 2015 and 2016 and unaudited condensed consolidated financial information for the interim periods of 2016 and the three months ended March 31, 2017. We also corrected the timing of immaterial previously recorded out-of-period adjustments and reflected them in the revised prior period financial statements, where applicable.  Prior periods not presented herein will be revised, as applicable, in future filings.

The following table presents the effect of the prior period revisions on the affected line items of our condensed consolidated balance sheet as of March 31, 2017 :

	March 31, 2017
(Amounts in thousands)	As Reported			Adjustments			As Revised
Accounts receivable, net (1)	$	844,597		$	(13,235	)	$	831,362
Inventories, net (2)	957,120			(17,120		)	940,000
Total current assets	2,282,133			(30,355		)	2,251,778
Deferred taxes (3)	84,590			(2,300		)	82,290
Total assets	4,696,831			(32,655		)	4,664,176
Accrued liabilities	654,025			(339		)	653,686
Total current liabilities	1,099,223			(339		)	1,098,884
Retirement obligations and other liabilities	418,196			(2,352		)	415,844
Retained earnings (4)	3,624,907			(29,539		)	3,595,368
Accumulated other comprehensive loss	(590,523		)	(425		)	(590,948		)
Total Flowserve Corporation shareholders’ equity	1,680,374			(29,964		)	1,650,410
Total equity	1,701,863			(29,964		)	1,671,899
Total liabilities and equity	$	4,696,831		$	(32,655	)	$	4,664,176

(1) The adjustments to accounts receivable, net are primarily related to receivables at one non-U.S. manufacturing site of $(10.5) million from our primary Venezuelan customer. These receivables should have been classified as long-term receivables and included in the charge that we recorded in the third quarter of 2016 to fully reserve all the potentially uncollectible receivables. This adjustment related to our EPD segment.

(2) The inventory adjustments primarily include corrections for errors at one non-U.S. manufacturing site related to inventory manufacturing cost variances of $(5.3) million , excess and obsolete reserve of $(3.0) million , inappropriate costs capitalized to projects in process of $(4.8) million and the write-off of non-recoverable work in process of $(3.8) million . The inventory manufacturing cost variances are capitalized to reflect inventory balances at actual cost, however, the non-U.S. site inappropriately overstated the costs subject to capitalization, primarily during 2016. The excess and obsolete reserve did not consider all inventory items resulting in an understatement of the reserve. The inappropriate costs were attributable to multiple projects over multiple periods for which no costs had been incurred or for which costs were incurred for warranty items that should have been expensed. The non-recoverable work in process related to projects which had previously shipped but the related costs were not appropriately removed from inventory. These adjustments were attributable to our IPD segment other than $(3.3) million of write-off of non-recoverable work in progress that were attributable to our EPD segment.

(3) The deferred tax asset adjustments primarily related to deferred tax assets of $(6.5) million that previously were determined to be more likely than not realizable, partially offset by the tax effect of other revision adjustments. However, as a result of the adjustments described above, it was determined the deferred tax assets would not be realized.

(4) The adjustment to retained earnings represents the cumulative effect of the errors that were corrected in current and prior periods.

8

The following table presents the effect of the prior period revisions on the affected line items of our condensed consolidated balance sheet as of December 31, 2016 :

	December 31, 2016
(Amounts in thousands)	As Reported			Adjustments			As Revised
Accounts receivable, net (1)	894,749			(12,111		)	882,638
Inventories, net (2)	919,251			(21,561		)	897,690
Total current assets	2,331,361			(33,672		)	2,297,689
Property, plant and equipment, net	723,628			1,177			724,805
Deferred taxes (3)	87,178			(3,456		)	83,722
Other assets, net	181,014			2,112			183,126
Total assets	$	4,742,762		$	(33,839	)	$	4,708,923
Accrued liabilities	680,689			297			680,986
Total current liabilities	1,178,141			297			1,178,438
Retirement obligations and other liabilities	410,168			(2,329		)	407,839
Retained earnings (4)	3,632,163			(33,767		)	3,598,396
Accumulated other comprehensive loss	(626,748		)	1,960			(624,788		)
Total Flowserve Corporation shareholders’ equity	1,648,234			(31,807		)	1,616,427
Noncontrolling interests	20,961			—			20,961
Total equity	1,669,195			(31,807		)	1,637,388
Total liabilities and equity	$	4,742,762		$	(33,839	)	$	4,708,923

_______________________________________

(1) The adjustments to accounts receivable, net are primarily related to receivables at one non-U.S. manufacturing site of $(9.5) million from our primary Venezuelan customer. These receivables should have been classified as long-term receivables and included in the charge that we recorded in the third quarter of 2016 to fully reserve all the potentially uncollectible receivables. This adjustment related to our EPD segment.

(2) The inventory adjustments primarily include corrections for errors at one non-U.S. manufacturing site related to inventory manufacturing cost variances of $(5.9) million , excess and obsolete reserve of $(2.5) million , inappropriate costs capitalized to projects in process of $(8.3) million and the write-off of non-recoverable work in process of $(3.3) million . The inventory manufacturing cost variances are capitalized to reflect inventory balances at actual cost, however, the non-U.S. site inappropriately overstated the costs subject to capitalization, primarily during 2016. The excess and obsolete reserve did not consider all inventory items resulting in an understatement of the reserve. The inappropriate costs were attributable to multiple projects over multiple periods for which no costs had been incurred or for which costs were incurred for warranty items that should have been expensed. The non-recoverable work in process related to projects which had previously shipped but the related costs were not appropriately removed from inventory. These adjustments were attributable to our IPD segment other than $(3.6) million of the inappropriate capitalized cost and $(2.8) million of write-off of non-recoverable work in progress that were attributable to our EPD segment.

(3) The deferred tax asset adjustments primarily related to deferred tax assets of $(6.4) million that previously were determined to be more likely than not realizable, partially offset by the tax effect of other revision adjustments. However, as a result of the adjustments described above, it was determined the deferred tax assets would not be realized.

(4) The adjustment to retained earnings represents the cumulative effect of the errors that were corrected in current and prior periods.

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The following table presents the effect of the prior period revisions on the affected line items of our condensed consolidated statement of income for the three months ended March 31, 2017 :

(Amounts in thousands, except per share data)	Three Months Ended March 31, 2017
	As Reported			Adjustments			As Revised
Sales	$	863,626		$	2,692		$	866,318
Cost of sales	(599,746		)	1,866			(597,880		)
Gross profit	263,880			4,558			268,438
Selling, general and administrative expense	(222,029		)	(55		)	(222,084		)
Net earnings from affiliates	5,165			(1,710		)	3,455
Operating income	47,016			2,793			49,809
Earnings before income taxes	21,817			2,792			24,609
Provision for income taxes	(6,755		)	1,435			(5,320		)
Net earnings, including noncontrolling interests	15,062			4,227			19,289
Net earnings attributable to Flowserve Corporation	$	14,823		$	4,227		$	19,050
Net earnings per share attributable to Flowserve Corporation common shareholders:
Basic	$	0.11		$	0.04		$	0.15
Diluted	0.11			0.04			0.15

The following table presents the effect of the prior period revisions on the affected line items of our condensed consolidated statement of income for the three months ended March 31, 2016 :

(Amounts in thousands, except per share data)	Three Months Ended March 31, 2016
	As Reported			Adjustments			As Revised
Sales	$	947,248		$	(1,027	)	$	946,221
Cost of sales	(639,247		)	(1,820		)	(641,067		)
Gross profit	308,001			(2,847		)	305,154
Selling, general and administrative expense	(236,910		)	(639		)	(237,549		)
Operating income	74,410			(3,486		)	70,924
Other expense, net	(4,543		)	(1,021		)	(5,564		)
Earnings before income taxes	55,975			(4,507		)	51,468
Provision for income taxes	(17,691		)	514			(17,177		)
Net earnings, including noncontrolling interests	38,284			(3,993		)	34,291
Net earnings attributable to Flowserve Corporation	$	37,859		$	(3,993	)	$	33,866
Net earnings per share attributable to Flowserve Corporation common shareholders:
Basic	$	0.29		$	(0.03	)	$	0.26
Diluted	0.29			(0.03		)	0.26

The effect of the revision adjustments to the condensed consolidated statements of cash flows for the three months ended March 31, 2016 and March 31, 2017 related to net earnings, including noncontrolling interests for the change in net earnings in the table above offset primarily by impacts to changes in assets and liabilities. The revisions to individual line items within changes in assets and liabilities were below $3 million except for an increase of $4.4 million to the change in inventory, net for the three months ended March 31, 2017 . Additionally, we adopted ASU 2016-09 on January 1, 2017, see Note 1 for further discussion of the impact of that adoption on our statements of cash flows.

The impacts of the revisions have been reflected throughout the financial statements, including the applicable footnotes, as appropriate.

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3. Stock-Based Compensation Plans

We maintain the Flowserve Corporation Equity and Incentive Compensation Plan (the "2010 Plan"), which is a shareholder-approved plan authorizing the issuance of up to 8,700,000 shares of our common stock in the form of restricted shares, restricted share units and performance-based units (collectively referred to as "Restricted Shares"), incentive stock options, non-statutory stock options, stock appreciation rights and bonus stock. Of the 8,700,000 shares of common stock authorized under the 2010 Plan, 2,832,115 were available for issuance as of March 31, 2017. In 2016 the long-term incentive program was amended to allow Restricted Shares granted after January 1, 2016 to employees who retire and have achieved at least 55 years of age and 10 years of service to continue to vest over the original vesting period ("55/10 Provision"). As of March 31, 2017, no stock options have been granted since 2006.

Restricted Shares – Awards of Restricted Shares are valued at the closing market price of our common stock on the date of grant. The unearned compensation is amortized to compensation expense over the vesting period of the restricted shares, except for awards related to the 55/10 Provision which are expensed in the period granted. We had unearned compensation of $25.0 million and $15.2 million at March 31, 2017 and December 31, 2016, respectively, which is expected to be recognized over a weighted-average period of approximately two years. These amounts will be recognized into net earnings in prospective periods as the awards vest. The total fair value of Restricted Shares vested during the three months ended March 31, 2017 and 2016 was $25.7 million and $36.4 million, respectively.

We recorded stock-based compensation expense of $7.5 million ($11.3 million pre-tax) and $10.5 million ($16.0 million pre-tax) for the three months ended March 31, 2017 and 2016, respectively.

The following table summarizes information regarding Restricted Shares:

	Three Months Ended March 31, 2017
	Shares		Weighted Average Grant-Date Fair Value
Number of unvested shares:
Outstanding - January 1, 2017	1,259,275		$	50.77
Granted	523,235		50.49
Vested	(423,523	)	60.69
Canceled	(128,281	)	47.97
Outstanding as of March 31, 2017	1,230,706		$	47.53

Unvested Restricted Shares outstanding as of March 31, 2017, includes approximately 872,000 units with performance-based vesting provisions. Performance-based units are issuable in common stock and vest upon the achievement of pre-defined performance targets. Performance-based units granted prior to 2017 have performance targets based on our average annual return on net assets over a three-year period as compared with the same measure for a defined peer group for the same period. Performance-based units granted in 2017 have performance targets based on our average return on invested capital and our total shareholder return ("TSR") over a three-year period as compared with the same measures for a defined peer group for the same period. Most units were granted in three annual grants since January 1, 2015 and have a vesting percentage between 0% and 200% depending on the achievement of the specific performance targets. Except for shares granted under the 55/10 Provision, compensation expense is recognized ratably over a cliff-vesting period of 36 months, based on the fair value of our common stock on the date of grant, as adjusted for actual forfeitures. During the performance period, earned and unearned compensation expense is adjusted based on changes in the expected achievement of the performance targets for all performance-based units granted except for the TSR-based units. Vesting provisions range from 0 to approximately 1,670,000 shares based on performance targets. As of March 31, 2017, we estimate vesting of approximately 636,000 shares based on expected achievement of performance targets.

4. Derivative Instruments and Hedges

Our risk management and foreign currency derivatives and hedging policy specifies the conditions under which we may enter into derivative contracts. See Notes 1 and 7 to our consolidated financial statements included in our 2016 Annual Report and Note 6 of this Quarterly Report for additional information on our derivatives. We enter into foreign exchange forward contracts to hedge our cash flow risks associated with transactions denominated in currencies other than the local currency of the operation engaging in the transaction.

We had no foreign exchange contracts designated as hedging instruments as of March 31, 2017, compared to a notional value of $0.6 million as of December 31, 2016. Foreign exchange contracts with third parties not designated as hedging instruments had a notional value of $387.0 million and $393.2 million at March 31, 2017 and December 31, 2016, respectively. At March 31, 2017, the length of foreign exchange contracts currently in place ranged from three days to 20 months.

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

The fair value of foreign exchange contracts not designated as hedging instruments are summarized below:

	March 31,		December 31,
(Amounts in thousands)	2017		2016
Current derivative assets	$	2,909	$	682
Current derivative liabilities	3,210		6,878
Noncurrent derivative liabilities	114		355

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

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

	Three Months Ended March 31,
(Amounts in thousands)	2017		2016
Gain recognized in income	$	1,897	$	2,061

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

In March 2015, we designated €255.7 million of our €500.0 million Euro senior notes discussed in Note 5 as a net investment hedge of our investments in certain of our international subsidiaries that use the Euro as their functional currency. We used the spot method to measure the effectiveness of our net investment hedge. Under this method, for each reporting period, the change in the carrying value of the Euro senior notes due to remeasurement of the effective portion is reported in accumulated other comprehensive loss on our condensed consolidated balance sheet and the remaining change in the carrying value of the ineffective portion, if any, is recognized in other expense, net in our condensed consolidated statement of income. We evaluate the effectiveness of our net investment hedge on a prospective basis at the beginning of each quarter. We did not record any ineffectiveness for the three months ended March 31, 2017 or March 31, 2016.

5. Debt

Debt, including capital lease obligations, consisted of:

	March 31,		December 31,
(Amounts in thousands, except percentages)	2017		2016
1.25% EUR Senior Notes due March 17, 2022, net of unamortized discount and debt issuance costs of $5,556 and $5,748	$	526,894	$	519,902
4.00% USD Senior Notes due November 15, 2023, net of unamortized discount and debt issuance costs of $2,878 and $2,972	297,122		297,028
3.50% USD Senior Notes due September 15, 2022, net of unamortized discount and debt issuance costs of $3,696 and $3,848	496,304		496,152
Term Loan Facility, interest rate of 2.40% at March 31, 2017 and 2.25% at December 31, 2016, net of debt issuance costs of $653 and $745	209,347		224,255
Capital lease obligations and other borrowings	38,514		33,286
Debt and capital lease obligations	1,568,181		1,570,623
Less amounts due within one year	90,632		85,365
Total debt due after one year	$	1,477,549	$	1,485,258

Senior Credit Facility

As discussed in Note 11 to our consolidated financial statements included in our 2016 Annual Report, our credit agreement provides for an initial $400.0 million term loan (“Term Loan Facility”) and a $1.0 billion revolving credit facility (“Revolving Credit Facility” and, together with the Term Loan Facility, the “Senior Credit Facility”) with a maturity date of October 14, 2020. As of March 31, 2017 and December 31, 2016, we had no amounts outstanding under the Revolving Credit Facility. We had outstanding letters of credit of $89.6 million and $102.6 million at March 31, 2017 and December 31, 2016, respectively. As of March 31, 2017 and December 31, 2016, due to a financial covenant in the Senior Credit Facility, the amount available for borrowings under our Revolving Credit Facility was effectively limited to $419.8 million and $553.5 million, respectively. Our compliance with applicable financial covenants under the Senior Credit Facility is tested quarterly, and we complied with all applicable covenants as of March 31, 2017.

We may prepay loans under our Senior Credit Facility in whole or in part, without premium or penalty, at any time. A commitment fee, which is payable quarterly on the daily unused portions of the Senior Credit Facility, was 0.150% (per annum) during the period ended March 31, 2017. During the three months ended March 31, 2017, we made scheduled repayments of $15.0 million under our Term Loan Facility. We have scheduled repayments of $15.0 million due in each of the next four quarters on our Term Loan Facility.

6. Fair Value

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied. Assets and liabilities recorded at fair value in our condensed consolidated balance sheets are categorized by hierarchical levels based upon the level of judgment associated with the inputs used to measure their fair values. Recurring fair value measurements are limited to investments in derivative instruments. The fair value measurements of our derivative instruments are determined using models that maximize the use of the observable market inputs including interest rate curves and both forward and spot prices for currencies, and are classified as Level II under the fair value hierarchy. The fair values of our derivatives are included in Note 4.

Our financial instruments are presented at fair value in our condensed consolidated balance sheets, 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 5. The estimated fair value of our Senior Notes at March 31, 2017 was $1,348.5 million compared to the carrying value of $1,320.3 million. The estimated fair value of the Senior Notes is based on Level I quoted market rates. The carrying amounts of our other financial instruments (e.g., cash and cash equivalents, accounts receivable, net, accounts payable and short-term debt) approximated fair value due to their short-term nature at March 31, 2017 and December 31, 2016.

7. Inventories

Inventories, net consisted of the following:

	March 31,			December 31,
(Amounts in thousands)	2017			2016
Raw materials	$	361,685		$	348,012
Work in process	652,383			629,766
Finished goods	215,383			206,086
Less: Progress billings	(214,507		)	(216,783		)
Less: Excess and obsolete reserve	(74,944		)	(69,391		)
Inventories, net	$	940,000		$	897,690

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8. Earnings Per Share

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

	Three Months Ended March 31,
(Amounts in thousands, except per share data)	2017		2016
Net earnings of Flowserve Corporation	$	19,050	$	33,866
Dividends on restricted shares not expected to vest	—		2
Earnings attributable to common and participating shareholders	$	19,050	$	33,868
Weighted average shares:
Common stock	130,393		129,781
Participating securities	169		361
Denominator for basic earnings per common share	130,562		130,142
Effect of potentially dilutive securities	713		670
Denominator for diluted earnings per common share	131,275		130,812
Earnings per common share:
Basic	$	0.15	$	0.26
Diluted	0.15		0.26

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

9. Legal Matters and Contingencies

Asbestos-Related Claims

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

Our practice is to vigorously contest and resolve these claims, and we have been successful in resolving a majority of claims with little or no payment. Historically, a high percentage of resolved claims have been covered by applicable insurance or indemnities from other companies, and we believe that a substantial majority of existing claims should continue to be covered by insurance or indemnities. Accordingly, we have recorded a liability for our estimate of the most likely settlement of asserted claims and a related receivable from insurers or other companies for our estimated recovery, to the extent we believe that the amounts of recovery are probable and not otherwise in dispute. While unfavorable rulings, judgments or settlement terms regarding these claims could have a material adverse impact on our business, financial condition, results of operations and cash flows, we currently believe the likelihood is remote.

Additionally, we have claims pending against certain insurers that, if resolved more favorably than reflected in the recorded receivables, would result in discrete gains in the applicable quarter. We are currently unable to estimate the impact, if any, of unasserted asbestos-related claims, although future claims would also be subject to then existing indemnities and insurance coverage.

United Nations Oil-for-Food Program

In mid-2006, the French authorities began an investigation of over 170 French companies, of which one of our French subsidiaries was included, concerning suspected inappropriate activities conducted in connection with the United Nations Oil for Food Program. As previously disclosed, the French investigation of our French subsidiary was formally opened in the first quarter of 2010, and our French subsidiary filed a formal response with the French court. In July 2012, the French court ruled against our procedural motions to challenge the constitutionality of the charges and quash the indictment. Hearings occurred on April 1-2, 2015, and the Company presented its defense and closing arguments. On June 18, 2015, the French court issued its ruling dismissing the case against the Company and the other defendants. However, on July 1, 2015, the French prosecutor lodged an appeal. We currently do not expect to incur additional case resolution costs of a material amount in this matter. However, if the French authorities

13

ultimately take enforcement action against our French subsidiary regarding its investigation, we may be subject to monetary and non-monetary penalties, which we currently do not believe will have a material adverse financial impact on our company.

Other

We are currently involved as a potentially responsible party at five former public waste disposal sites in various stages of evaluation or remediation. The projected cost of remediation at these sites, as well as our alleged "fair share" allocation, will remain uncertain until all studies have been completed and the parties have either negotiated an amicable resolution or the matter has been judicially resolved. At each site, there are many other parties who have similarly been identified. Many of the other parties identified are financially strong and solvent companies that appear able to pay their share of the remediation costs. Based on our information about the waste disposal practices at these sites and the environmental regulatory process in general, we believe that it is likely that ultimate remediation liability costs for each site will be apportioned among all liable parties, including site owners and waste transporters, according to the volumes and/or toxicity of the wastes shown to have been disposed of at the sites. We believe that our financial exposure for existing disposal sites will not be materially in excess of accrued reserves.

As previously disclosed in our 2016 Annual Report, we terminated an employee of an overseas subsidiary after uncovering actions that violated our Code of Business Conduct and may have violated the Foreign Corrupt Practices Act.  We completed our internal investigation into the matter, self-reported the potential violation to the United States Department of Justice (the “DOJ”) and the SEC, and continue to cooperate with the DOJ and SEC.  We previously received a subpoena from the SEC requesting additional information and documentation related to the matter and have completed our response to the subpoena.  We currently believe that this matter will not have a material adverse financial impact on the Company, but there can be no assurance that the Company will not be subjected to monetary penalties and additional costs. 

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 reserves covering exposures relating to contingencies, to the extent believed to be reasonably estimable and probable based on past experience and available facts. While additional exposures beyond these reserves could exist, they currently cannot be estimated. We will continue to evaluate and update the reserves as necessary and appropriate.

10. Retirement and Postretirement Benefits

Components of the net periodic cost for retirement and postretirement benefits for the three months ended March 31, 2017 and 2016 were as follows:

	U.S. Defined Benefit Plans						Non-U.S. Defined Benefit Plans						Postretirement Medical Benefits
(Amounts in millions)	2017			2016			2017			2016			2017		2016
Service cost	$	6.2		$	5.9		$	1.7		$	1.8		$	—	$	—
Interest cost	4.3			4.8			2.2			2.9			0.2		0.3
Expected return on plan assets	(6.2		)	(6.1		)	(2.1		)	(2.7		)	—		—
Amortization of prior service cost	—			0.1			—			—			—		—
Amortization of unrecognized net loss (gain)	1.5			1.2			0.9			1.3			0.1		(0.1		)
Net periodic cost recognized	$	5.8		$	5.9		$	2.7		$	3.3		$	0.3	$	0.2

11. 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 dependent on its assessment of our financial situation and business outlook at the applicable time.

Share Repurchase Program – On November 13, 2014, our Board of Directors approved a $500.0 million share repurchase authorization. Our share repurchase program does not have an expiration date, and we reserve the right to limit or terminate the repurchase program at anytime without notice. We had no repurchases of shares of our outstanding common stock for the three months ended March 31, 2017 and 2016. As of March 31, 2017 we had $160.7 million of remaining capacity under our current share repurchase program.

12. Income Taxes

For the three months ended March 31, 2017 , we earned $24.6 million before taxes and provided for income taxes of $5.3 million resulting in an effective tax rate of 21.6% . The effective tax rate varied from the U.S. federal statutory rate for the three months ended March 31, 2017 primarily due to the net impact of foreign operations.

For the three months ended March 31, 2016 , we earned $51.5 million before taxes and provided for income taxes of $17.2 million resulting in an effective tax rate of 33.4% . The effective tax rate varied from the U.S. federal statutory rate for the three months ended March 31, 2016 primarily due to the net impact of foreign operations.

As of March 31, 2017, the amount of unrecognized tax benefits increased by $3.4 million from December 31, 2016. With limited exception, we are no longer subject to U.S. federal income tax audits for years through 2014, state and local income tax audits for years through 2010 or non-U.S. income tax audits for years through 2009. We are currently under examination for various years in Austria, Germany, India, Italy, Singapore, the U.S. and Venezuela.

It is reasonably possible that within the next 12 months the effective tax rate will be impacted by the resolution of some or all of the matters audited by various taxing authorities. It is also reasonably possible that we will have the statute of limitations close in various taxing jurisdictions within the next 12 months. As such, we estimate we could record a reduction in our tax expense of approximately $8 million within the next 12 months.

13. Segment Information

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

Three Months Ended March 31, 2017
(Amounts in thousands)	Engineered Product Division		Industrial Product Division			Flow Control Division		Subtotal–Reportable Segments		Eliminations and All Other			Consolidated Total
Sales to external customers	$	417,070	$	170,002		$	279,246	$	866,318	$	—		$	866,318
Intersegment sales	7,592		8,378			1,191		17,161		(17,161		)	—
Segment operating income (loss)	45,583		(13,774		)	41,470		73,279		(23,470		)	49,809
Three Months Ended March 31, 2016
(Amounts in thousands)	Engineered Product Division		Industrial Product Division			Flow Control Division		Subtotal–Reportable Segments		Eliminations and All Other			Consolidated Total
Sales to external customers	$	463,199	$	186,704		$	296,318	$	946,221	$	—		$	946,221
Intersegment sales	9,613		10,746			2,668		23,027		(23,027		)	—
Segment operating income	55,808		3,695			38,374		97,877		(26,953		)	70,924

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14. Accumulated Other Comprehensive Loss

The following table presents the changes in accumulated other comprehensive loss ("AOCL"), net of tax for the three months ended March 31, 2017 and 2016 :

	2017												2016
(Amounts in thousands)	Foreign currency translation items(1)			Pension and other post-retirement effects			Cash flow hedging activity			Total(1)			Foreign currency translation items(1)			Pension and other post-retirement effects			Cash flow hedging activity			Total(1)
Balance - January 1	$	(483,609	)	$	(136,530	)	$	(1,238	)	$	(621,377	)	$	(411,615	)	$	(120,461	)	$	(3,458	)	$	(535,534	)
Other comprehensive income (loss) before reclassifications	33,786			(1,152		)	80			32,714			32,499			1,060			529			34,088
Amounts reclassified from AOCL	—			1,636			23			1,659			—			1,726			114			1,840
Net current-period other comprehensive income	33,786			484			103			34,373			32,499			2,786			643			35,928
Balance - March 31	$	(449,823	)	$	(136,046	)	$	(1,135	)	$	(587,004	)	$	(379,116	)	$	(117,675	)	$	(2,815	)	$	(499,606	)

_______________________________________

(1) Includes foreign currency translation adjustments attributable to noncontrolling interests of $3.4 million and $2.7 million at January 1, 2017 and 2016, respectively, and $3.9 million and $3.5 million at March 31, 2017 and 2016 , respectively. Includes net investment hedge losses of $0.8 million and $12.5 million , net of deferred taxes, for the three months ended March 31, 2017 and 2016 , respectively. Amounts in parentheses indicate debits.

The following table presents the reclassifications out of AOCL:

		Three Months Ended March 31,
(Amounts in thousands)	Affected line item in the statement of income	2017(1)			2016
Cash flow hedging activity
Foreign exchange contracts
	Sales	$	(30	)	$	(154	)
	Tax benefit	7			40
	Net of tax	$	(23	)	$	(114	)
Pension and other postretirement effects
Amortization of actuarial losses(2)		$	(2,397	)	$	(2,313	)
Prior service costs(2)		(57		)	(152		)
	Tax benefit	818			739
	Net of tax	$	(1,636	)	$	(1,726	)

_______________________________________

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

(2) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 10 for additional details.

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15. Realignment Programs

In the first quarter of 2015, we initiated a realignment program ("R1 Realignment Program") to reduce and optimize certain non-strategic QRCs and manufacturing facilities . In the second quarter of 2015, we initiated a second realignment program ("R2 Realignment Program") to better align costs and improve long-term efficiency, including further manufacturing optimization through the consolidation of facilities, a reduction in our workforce, the transfer of activities from high-cost regions to lower-cost facilities and the divestiture of certain non-strategic assets.

The R1 Realignment Program and the R2 Realignment Program (collectively the "Realignment Programs") consist of both restructuring and non-restructuring charges. Restructuring charges represent costs associated with the relocation or reorganization of certain business activities and facility closures and include related severance costs. Non-restructuring charges are primarily employee severance associated with workforce reductions to reduce redundancies. Expenses are primarily reported in COS or SG&A, as applicable, in our condensed consolidated statements of income. We anticipate a total investment in these programs of approximately $400 million, including projects still under final evaluation. We anticipate that the majority of any remaining charges will be incurred in 2017.

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

	Three Months Ended March 31, 2017
(Amounts in thousands)	Engineered Product Division			Industrial Product Division		Flow Control Division			Subtotal–Reportable Segments			Eliminations and All Other		Consolidated Total
Restructuring Charges
COS	$	(2,674	)	$	4,771	$	(32	)	$	2,065		$	—	$	2,065
SG&A	(781		)	89		124			(568		)	11		(557		)
	$	(3,455	)	$	4,860	$	92		$	1,497		$	11	$	1,508
Non-Restructuring Charges
COS	$	1,101		$	1,438	$	433		$	2,972		$	—	$	2,972
SG&A	714			3,606		547			4,867			1,164		6,031
	$	1,815		$	5,044	$	980		$	7,839		$	1,164	$	9,003
Total Realignment Charges
COS	$	(1,573	)	$	6,209	$	401		$	5,037		$	—	$	5,037
SG&A	(67		)	3,695		671			4,299			1,175		$	5,474
Total	$	(1,640	)	$	9,904	$	1,072		$	9,336		$	1,175	$	10,511

	Three Months Ended March 31, 2016
(Amounts in thousands)	Engineered Product Division			Industrial Product Division			Flow Control Division		Subtotal–Reportable Segments		Eliminations and All Other		Consolidated Total
Restructuring Charges
COS	$	1,520		$	(184	)	$	108	$	1,444	$	—	$	1,444
SG&A	2,407			1,712			159		4,278		—		4,278
	$	3,927		$	1,528		$	267	$	5,722	$	—	$	5,722
Non-Restructuring Charges
COS	$	99		$	1,793		$	3,860	$	5,752	$	15	$	5,767
SG&A	(221		)	608			1,464		1,851		131		1,982
	$	(122	)	$	2,401		$	5,324	$	7,603	$	146	$	7,749
Total Realignment Charges
COS	$	1,619		$	1,609		$	3,968	$	7,196	$	15	$	7,211
SG&A	2,186			2,320			1,623		6,129		131		$	6,260
Total	$	3,805		$	3,929		$	5,591	$	13,325	$	146	$	13,471

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

	Inception to Date
(Amounts in thousands)	Engineered Product Division		Industrial Product Division (1)		Flow Control Division		Subtotal–Reportable Segments		Eliminations and All Other		Consolidated Total
Restructuring Charges
COS	$	32,037	$	45,419	$	13,957	$	91,413	$	—	$	91,413
SG&A	17,036		15,686		9,676		42,398		29		42,427
Income tax expense(2)	9,400		9,300		1,800		20,500		—		20,500
	$	58,473	$	70,405	$	25,433	$	154,311	$	29	$	154,340
Non-Restructuring Charges
COS	$	17,261	$	15,621	$	12,366	$	45,248	$	8	$	45,256
SG&A	10,707		11,816		5,386		27,909		5,596		33,505
	$	27,968	$	27,437	$	17,752	$	73,157	$	5,604	$	78,761
Total Realignment Charges
COS	$	49,298	$	61,040	$	26,323	$	136,661	$	8	$	136,669
SG&A	27,743		27,502		15,062		70,307		5,625		75,932
Income tax expense(2)	9,400		9,300		1,800		20,500		—		20,500
Total	$	86,441	$	97,842	$	43,185	$	227,468	$	5,633	$	233,101

____________________________

(1) Includes $48.2 million of restructuring charges, primarily COS, related to the R1 Realignment Program.

(2) Income tax expense includes exit taxes as well as non-deductible costs.

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

The following is a summary of restructuring charges, net of adjustments, for the Realignment Programs:

	Three Months Ended March 31, 2017
(Amounts in thousands)	Severance			Contract Termination		Asset Write-Downs		Other		Total
COS	$	(3,757	)	$	137	$	4,953	$	732	$	2,065
SG&A	(1,319		)	—		352		410		(557		)
Total	$	(5,076	)	$	137	$	5,305	$	1,142	$	1,508

	Three Months Ended March 31, 2016
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs		Other		Total
COS	$	63	$	—	$	918	$	463	$	1,444
SG&A	3,754		—		36		488		4,278
Total	$	3,817	$	—	$	954	$	951	$	5,722

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

	Inception to Date
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs		Other		Total (1)
COS(1)	$	68,187	$	746	$	13,870	$	8,610	$	91,413
SG&A	29,448		43		1,780		11,156		42,427
Income tax expense(2)	—		—		—		20,500		20,500
Total	$	97,635	$	789	$	15,650	$	40,266	$	154,340

_______________________________

(1) Includes $48.2 million of restructuring charges, primarily COS, related to the R1 Realignment Program.

(2) Income tax expense includes exit taxes as well as non-deductible costs.

The following represents the activity, primarily severance, related to the restructuring reserve for the Realignment Programs for the three months ended March 31, 2017 and 2016:

	2017									2016
(Amounts in thousands)	R1 Realignment Program			R2 Realignment Program			Total			R1 Realignment Program			R2 Realignment Program			Total
Balance at December 31	$	12,594		$	47,733		$	60,327		$	25,156		$	33,147		$	58,303
Charges, net of adjustments	(3,431		)	(503		)	(3,934		)	976			3,792			4,768
Cash expenditures	(4,124		)	(7,070		)	(11,194		)	(1,294		)	(3,999		)	(5,293		)
Other non-cash adjustments, including currency	3,038			(1,712		)	1,326			(877		)	(1,162		)	(2,039		)
Balance at March 31	$	8,077		$	38,448		$	46,525		$	23,961		$	31,778		$	55,739

16. Subsequent Event

On March 31, 2017, we signed a conditional sale and purchase agreement to sell our Flow Control Division's ("FCD") Gestra AG ("Gestra") business to a leading provider of steam system solutions for €186 million. The sale will include Gestra’s manufacturing facility in Germany as well as related operations in the U.S., the United Kingdom ("U.K."), Spain, Poland, Italy, Singapore and Portugal. In 2016, Gestra recorded revenues of approximately €92 million with earnings before interest and taxes of approximately €15 million. We believe the transaction will be completed in May 2017. Although the timing of the completed transaction and the balance sheet at the closing date will determine the exact amount, we currently estimate a gain on the sale in excess of €40 million.

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

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our condensed consolidated financial statements, and notes thereto, and the other financial data included elsewhere in this Quarterly Report. The following discussion should also be read in conjunction with our audited consolidated financial statements, and notes thereto, and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" ("MD&A") included in our 2016 Annual Report.

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EXECUTIVE OVERVIEW

Our Company

We believe that we are a world-leading manufacturer and aftermarket service provider of comprehensive flow control systems. We develop and manufacture precision-engineered flow control equipment integral to the movement, control and protection of the flow of materials in our customers’ critical processes. Our product portfolio of pumps, valves, seals, automation and aftermarket services supports global infrastructure industries, including oil and gas, chemical, power generation and water management, as well as general industrial markets where our products and services add value. Through our manufacturing platform and global network of Quick Response Centers ("QRCs"), we offer a broad array of aftermarket equipment services, such as installation, advanced diagnostics, repair and retrofitting. We currently employ approximately 18,000 employees in more than 50 countries.

Our business model is significantly influenced by the capital spending of global infrastructure industries for the placement of new products into service and aftermarket services for existing operations. The worldwide installed base of our products is an important source of aftermarket revenue, where products are expected to ensure the maximum operating time of many key industrial processes. Over the past several years, we have significantly invested in our aftermarket strategy to provide local support to drive customer investments in our offerings and use of our services to replace or repair installed products. The aftermarket portion of our business also helps provide business stability during various economic periods. The aftermarket business, which is served by our network of 182 QRCs located around the globe, provides a variety of service offerings for our customers including spare parts, service solutions, product life cycle solutions and other value-added services. It is generally a higher margin business compared to our original equipment business and a key component of our profitable growth strategy.

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

• EPD for long lead-time, custom and other highly-engineered pumps and pump systems, mechanical seals, auxiliary systems and replacement parts and related services;

• IPD for engineered and pre-configured industrial pumps and pump systems and related products and services; and

• FCD for engineered and industrial valves, control valves, actuators and controls and related services.

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. For example, our segment leadership reports to our Chief Operating Officer ("COO") and the segments share leadership for operational support functions, such as research and development, marketing and supply chain.

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

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

During the first three months of 2017, our financial results continued to be challenged by capital spending declines, primarily in the oil and gas industry, and pricing pressures. Although there has been stability in oil prices over recent quarters, we anticipate that the current environment will persist throughout 2017, potentially improving in the second half of this year.

To better align costs and improve long-term efficiency, we initiated Realignment Programs to accelerate both short- and long-term strategic plans, including targeted manufacturing optimization through the consolidation of facilities, SG&A efficiency initiatives, transfer of activities from high-cost regions to lower-cost facilities and the divestiture of certain non-strategic assets. At the completion of the programs, we expect a 15% to 20% reduction in our global workforce, relative to early 2015 workforce

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levels. With an expected near-term investment of approximately $400 million, including projects still under final evaluation, we expect the results of our Realignment Programs will deliver annualized run-rate savings of approximately $230 million. In addition, we are focusing on our ongoing low-cost sourcing, including greater use of third-party suppliers and increasing our lower-cost, emerging market capabilities.

RESULTS OF OPERATIONS — Three months ended March 31, 2017 and 2016

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

In the second quarter of 2017, we identified accounting errors focused mainly at two of our non-U.S. sites in the inventory, accounts receivable, cost of sales and selling, general and administrative expense balances for prior periods through the first quarter of 2017. We have assessed these errors, individually and in the aggregate, and concluded that they are not material to any prior annual or interim period. However, to facilitate comparisons among periods we have revised our previously issued audited consolidated financial information for fiscal years ended December 31, 2014, 2015 and 2016 and unaudited condensed consolidated financial information for the interim periods of 2016 and the three months ended March 31, 2017. We also corrected the timing of immaterial previously recorded out-of-period adjustments and reflected them in the revised prior period financial statements, where applicable.  Prior periods not presented herein will be revised, as applicable, in future filings. Refer to Note 2 to our condensed consolidated financial statements included in this Quarterly Report for more information.

In 2015, we initiated Realignment Programs that consist of both restructuring and non-restructuring charges that are further discussed in Note 15 included in this Quarterly Report. The Realignment Programs will continue throughout 2017 and the total charges for Realignment Programs by segment are detailed below for the three months ended March 31, 2017 and 2016:

	Three Months Ended March 31, 2017
(Amounts in thousands)	Engineered Product Division			Industrial Product Division		Flow Control Division		Subtotal–Reportable Segments		Eliminations and All Other		Consolidated Total
Total Realignment Program Charges
COS	$	(1,573	)	$	6,209	$	401	$	5,037	$	—	$	5,037
SG&A	(67		)	3,695		671		4,299		1,175		5,474
Total	$	(1,640	)	$	9,904	$	1,072	$	9,336	$	1,175	$	10,511

	Three Months Ended March 31, 2016
(Amounts in thousands)	Engineered Product Division		Industrial Product Division		Flow Control Division		Subtotal–Reportable Segments		Eliminations and All Other		Consolidated Total
Total Realignment Program Charges
COS	$	1,619	$	1,609	$	3,968	$	7,196	$	15	$	7,211
SG&A	2,186		2,320		1,623		6,129		131		6,260
Total	$	3,805	$	3,929	$	5,591	$	13,325	$	146	$	13,471

We anticipate a total investment in these Realignment Programs of approximately $400 million, including projects still under final evaluation. Since inception of the Realignment Programs in 2015, we have incurred charges of $233.1 million and we expect to incur the majority of the remaining charges throughout 2017.

Based on actions under our Realignment Programs, we estimate that we have achieved cost savings of approximately $44 million for the three months ended March 31, 2017, as compared with $16 million in the same period of 2016. Approximately $28 million of those savings are in COS with the remainder in SG&A. Upon completion of the Realignment Programs, we expect run-rate cost savings of approximately $230 million, of which approximately $190 million would be achieved in 2017. Actual savings could vary from expected savings, which represent management’s best estimate to date.

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Consolidated Results

Bookings, Sales and Backlog

	Three Months Ended March 31,
(Amounts in millions)	2017		2016
Bookings	$	958.2	$	921.8
Sales	866.3		946.2

We define a booking as the receipt of a customer order that contractually engages us to perform activities on behalf of our customer with regard to manufacturing, service or support. Bookings recorded and subsequently canceled within the year-to-date period are excluded from year-to-date bookings. Bookings for the three months ended March 31, 2017 increase d by $36.4 million , or 3.9% , as compared with the same period in 2016 and included an order for approximately $80 million to provide pumps and related equipment for the Hengli Integrated Refining Complex Project in China. The increase included negative currency effects of approximately $12 million . The increase was primarily driven by the oil and gas industry, partially offset by decreases in the power generation and general industries. The increase was primarily due to customer original equipment bookings.

Sales for the three months ended March 31, 2017 decrease d by $79.9 million , or 8.4% , as compared with the same period in 2016 . The decrease included negative currency effects of approximately $9 million . The decrease was more heavily weighted toward original equipment sales with decrease d sales into every region except for Europe. Net sales to international customers, including export sales from the U.S., were approximately 64% and 62% of total sales for the three months ended March 31, 2017 and 2016 , respectively.

Backlog represents the aggregate value of booked but uncompleted customer orders and is influenced primarily by bookings, sales, cancellations and currency effects. Backlog of $2,006.4 million at March 31, 2017 increase d by $108.7 million , or 5.7% , as compared with December 31, 2016 . Currency effects provided an increase of approximately $22 million . Approximately 31.1% of the backlog at March 31, 2017 was related to aftermarket orders.

Gross Profit and Gross Profit Margin

	Three Months Ended March 31,
(Amounts in millions, except percentages)	2017			2016
Gross profit	$	268.4		$	305.2
Gross profit margin	31.0		%	32.3		%

Gross profit for the three months ended March 31, 2017 decrease d by $36.8 million , or 12.1% , as compared with the same period in 2016 . Gross profit margin for the three months ended March 31, 2017 of 31.0% decrease d from 32.3% for the same period in 2016 . The decrease in gross profit margin was primarily attributed to the negative impact of decreased sales on our absorption of fixed manufacturing costs and lower margin projects that shipped from backlog, partially offset by a mix shift to higher margin aftermarket sales and decreased charges and increased savings related to our Realignment Programs compared to the same period in 2016. Aftermarket sales increased to approximately 47% of total sales, as compared with approximately 45% of total sales for the same period in 2016 .

Selling, General and Administrative Expense

	Three Months Ended March 31,
(Amounts in millions, except percentages)	2017			2016
SG&A	$	222.1		$	237.5
SG&A as a percentage of sales	25.6		%	25.1		%

SG&A for the three months ended March 31, 2017 decrease d by $15.4 million , or 6.5% , as compared with the same period in 2016 . Currency effects yielded a decrease of approximately $2 million . SG&A as a percentage of sales for the three months ended March 31, 2017 increase d 50 basis points as compared with the same period in 2016 due to lower sales leverage, partially offset by decreased charges and increased savings related to our Realignment Programs compared to the same period in 2016.

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Net Earnings from Affiliates

	Three Months Ended March 31,
(Amounts in millions)	2017		2016
Net earnings from affiliates	$	3.5	$	3.3

Net earnings from affiliates for the three months ended March 31, 2017 increase d $0.2 million , or 6.1% , as compared with the same period in 2016 . The increase was primarily a result of increased earnings of our EPD joint venture in South Korea.

Operating Income and Operating Margin

	Three Months Ended March 31,
(Amounts in millions, except percentages)	2017			2016
Operating income	$	49.8		$	70.9
Operating income as a percentage of sales	5.7		%	7.5		%

Operating income for the three months ended March 31, 2017 decreased by $21.1 million , or 29.8% , as compared with the same period in 2016 . The decrease included negative currency effects of approximately one million. The decrease was primarily a result of the $36.8 million decrease in gross profit, partially offset by a $15.4 million decrease in SG&A.

Interest Expense and Interest Income

	Three Months Ended March 31,
(Amounts in millions)	2017			2016
Interest expense	$	(14.7	)	$	(14.6	)
Interest income	0.6			0.7

Interest expense and interest income for the three months ended March 31, 2017 remained relatively constant compared with the same period in 2016 .

Other Expense, Net

	Three Months Ended March 31,
(Amounts in millions)	2017			2016
Other expense, net	$	(11.1	)	$	(5.6	)

Other expense, net for the three months ended March 31, 2017 increase d $5.5 million as compared with the same period in 2016 , due primarily to a $7.3 million increase in losses from transactions in currencies other than our sites' functional currencies. The net change was primarily due to the foreign currency exchange rate movements in the Mexican peso, Euro, Indian rupee and Brazilian real in relation to the U.S. dollar during the three months ended March 31, 2017 , as compared with the same period in 2016 .

Tax Expense and Tax Rate

	Three Months Ended March 31,
(Amounts in millions, except percentages)	2017			2016
Provision for income taxes	$	5.3		$	17.2
Effective tax rate	21.6		%	33.4		%

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The effective tax rate of 21.6% for the three months ended March 31, 2017 decreased from 33.4% for the same period in 2016 . The effective tax rate varied from the U.S. federal statutory rate for the three months ended March 31, 2017 primarily due to the net impact of foreign operations.

Other Comprehensive Income

	Three Months Ended March 31,
(Amounts in millions)	2017		2016
Other comprehensive income	$	34.4	$	35.9

Other comprehensive income for the three months ended March 31, 2017 decreased $1.5 million from $35.9 million in 2016 .

Business Segments

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

Engineered Product Division Segment Results

Our largest business segment is EPD, through which we design, manufacture, distribute and service custom and other highly-engineered pumps and pump systems, mechanical seals, auxiliary systems and spare parts (collectively referred to as "original equipment"). EPD includes longer lead-time, highly-engineered pump products and shorter cycle engineered pumps and mechanical seals that are generally manufactured more quickly. EPD also manufactures replacement parts and related equipment and provides a full array of replacement parts, repair and support services (collectively referred to as "aftermarket"). EPD primarily operates in the oil and gas, power generation, chemical and general industries. EPD operates in 47 countries with 32 manufacturing facilities worldwide, 10 of which are located in Europe, 10 in North America, seven in Asia and five in Latin America, and it operates 124 QRCs, including those co-located in manufacturing facilities and/or shared with FCD.

	Three Months Ended March 31,
(Amounts in millions, except percentages)	2017			2016
Bookings	$	460.9		$	424.8
Sales	424.7			472.8
Gross profit	136.7			155.8
Gross profit margin	32.2		%	33.0		%
Segment operating income	45.6			55.8
Segment operating income as a percentage of sales	10.7		%	11.8		%

Bookings for the three months ended March 31, 2017 increase d by $36.1 million , or 8.5% , as compared with the same period in 2016 and included an order for approximately $80 million to provide pumps and related equipment for the Hengli Integrated Refining Complex Project in China. The increase included negative currency effects of approximately $5 million . The increase in customer bookings was primarily driven by the oil and gas and chemical industries, partially offset by a decrease in the power generation and general industries. Increased bookings of $64.9 million into Asia Pacific were partially offset by decreased bookings of $13.3 million into Europe, $6.5 million into North America, $5.8 million into the Middle East and $3.2 million into Africa. The increase was more heavily weighted towards customer original equipment bookings. Interdivision bookings (which are eliminated and are not included in consolidated bookings as disclosed above) increase d $1.8 million .

Sales for the three months ended March 31, 2017 decrease d $48.1 million , or 10.2% , as compared with the same period in 2016 . The decrease included negative currency effects of approximately $4 million . The decrease was due to lower customer original equipment sales, resulting from decreased sales of $33.9 million into North America, $12.6 million into Latin America, and $5.8 million into Africa. Interdivision sales (which are eliminated and are not included in consolidated sales as disclosed above) decrease d $2.0 million .

Gross profit for the three months ended March 31, 2017 decrease d by $19.1 million , or 12.3% , as compared with the same period in 2016 . Gross profit margin for the three months ended March 31, 2017 of 32.2% decrease d from 33.0% for the same period in 2016 . The decrease in gross profit margin was primarily attributable to the negative impact of decreased sales on our

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absorption of fixed manufacturing costs and lower margin projects that shipped from backlog, partially offset by decreased charges related to our Realignment Programs compared to the same period in 2016 and a mix shift to higher margin aftermarket sales.

Operating income for the three months ended March 31, 2017 decrease d by $10.2 million , or 18.3% , as compared with the same period in 2016 . The decrease included negative currency effects of approximately $2 million . The decrease was due to a $19.1 million decrease in gross profit, partially offset by a $8.6 million decrease in SG&A (including a decrease due to currency effects of less than one million). The decrease in SG&A is primarily due to decreased charges and increased savings achieved related to our Realignment Programs compared to the same period in 2016.

Backlog of $1,014.1 million at March 31, 2017 increase d by $47.3 million , or 4.9% , as compared with December 31, 2016 . Currency effects provided an increase of approximately $14 million . Backlog at March 31, 2017 and December 31, 2016 included $12.3 million  and $11.7 million , respectively, of interdivision backlog (which is eliminated and not included in consolidated backlog as disclosed above).

Industrial Product Division Segment Results

Through IPD, we design, manufacture, distribute and service engineered, pre-configured industrial pumps and pump systems, including submersible motors (collectively referred to as "original equipment"). Additionally, IPD manufactures replacement parts and related equipment, and provides a full array of support services (collectively referred to as "aftermarket"). IPD primarily operates in the oil and gas, chemical, power generation and general industries. IPD operates 18 manufacturing facilities, five of which are located in the U.S, nine in Europe and four in Asia and it operates 30 QRCs worldwide, including 19 sites in Europe, six in the U.S., three in Asia and two in Latin America, including those co-located in manufacturing facilities.

	Three Months Ended March 31,
(Amounts in millions, except percentages)	2017			2016
Bookings	$	206.7		$	207.7
Sales	178.4			197.5
Gross profit	34.8			50.0
Gross profit margin	19.5		%	25.3		%
Segment operating (loss) income	(13.8		)	3.7
Segment operating (loss) income as a percentage of sales	(7.7		)%	1.9		%

Bookings for the three months ended March 31, 2017 decrease d by $1.0 million , or 0.5% , as compared with the same period in 2016 . The decrease included negative currency effects of approximately $3 million . The decrease in customer bookings was primarily driven by the chemical and power generation industries, substantially offset by an increase in the oil and gas industry. Decreased bookings of $6.6 million into Asia Pacific and $4.1 million into the Middle East were substantially offset by increased bookings of $10.7 million into North America. Interdivision bookings (which are eliminated and are not included in consolidated bookings as disclosed above) decrease d $2.6 million .

Sales for the three months ended March 31, 2017 decrease d $19.1 million , or 9.7% , as compared with the same period in 2016 . The decrease included negative currency effects of approximately $3 million and was primarily driven by decreased customer original equipment sales. Customer sales decreased $18.3 million into North America and $1.0 million into Asia Pacific. Interdivision sales (which are eliminated and are not included in consolidated sales as disclosed above) decrease d $2.4 million when compared to the same period in 2016 .

Gross profit for the three months ended March 31, 2017 decrease d by $15.2 million , or 30.4% , as compared with the same period in 2016 . Gross profit margin for the three months ended March 31, 2017 of 19.5% decrease d from 25.3% for the same period in 2016 . The decrease in gross profit margin was primarily attributable to increased charges related to our Realignment Programs and the negative impact of decreased sales on our absorption of fixed manufacturing costs, partially offset by a mix shift to higher margin aftermarket sales.

Operating loss for the three months ended March 31, 2017 increase d by $17.5 million , to a loss of $13.8 million , as compared with income of $3.7 million for the same period in 2016 . The increase included currency benefits of less than one million. The increased loss was primarily due to the $15.2 million decrease in gross profit and a $2.0 million increase in SG&A (including a decrease due to currency effects of approximately one million ). The increase in SG&A is primarily due to increased charges related to our Realignment Programs.

Backlog of $404.5 million at March 31, 2017 increase d by $31 million , or 8.3% , as compared with December 31, 2016 . Currency effects provided an increase of approximately $3 million . Backlog at March 31, 2017 and December 31, 2016 included

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$14.0 million  and $14.2 million , respectively, of interdivision backlog (which is eliminated and not included in consolidated backlog as disclosed above).

Flow Control Division Segment Results

Our second largest business segment is FCD, which designs, manufactures and distributes a broad portfolio of engineered-to-order and configured-to-order isolation valves, control valves, valve automation products, boiler controls and related services. FCD leverages its experience and application know-how by offering a complete menu of engineered services to complement its expansive product portfolio. FCD has a total of 58 manufacturing facilities and QRCs in 25 countries around the world, with five of its 26 manufacturing operations located in the U.S., 13 located in Europe, seven located in Asia Pacific and one located in Latin America. Based on independent industry sources, we believe that FCD is the third largest industrial valve supplier on a global basis.

	Three Months Ended March 31,
(Amounts in millions, except percentages)	2017			2016
Bookings	$	309.8		$	310.1
Sales	280.4			299.0
Gross profit	98.0			98.6
Gross profit margin	35.0		%	33.0		%
Segment operating income	41.5			38.4
Segment operating income as a percentage of sales	14.8		%	12.8		%

Bookings for the three months ended March 31, 2017 were flat compared with the same period in 2016 . Bookings included negative currency effects of approximately $4 million . Decreased customer bookings in the general industries were substantially offset by increases in the oil and gas and power generation industries. Decreased customer bookings of $11.1 million into Latin America, $8.4 million into North America and $5.0 million into the Middle East were substantially offset by increased customer bookings of $15.8 million into Asia Pacific, $5.7 million into Europe and $1.8 million into Africa.

Sales for the three months ended March 31, 2017 decrease d $18.6 million , or 6.2% , as compared with the same period in 2016 . The decrease included negative currency effects of approximately $2 million and was primarily driven by decreased customer original equipment sales. Decreased customer sales of $13.5 million into the Middle East and $7.8 million into Asia Pacific were partially offset by increased sales of $3.3 million into Europe.

Gross profit for the three months ended March 31, 2017 decrease d by $0.6 million , or 0.6% , as compared with the same period in 2016 . Gross profit margin for the three months ended March 31, 2017 of 35.0% increase d from 33.0% for the same period in 2016 . The increase in gross profit margin was primarily attributable to the savings achieved and decreased charges related to our Realignment Programs compared to the same period in 2016.

Operating income for the three months ended March 31, 2017 increase d by $3.1 million , or 8.1% , as compared with the same period in 2016 . The increase included negative currency effects of less than a million. The increase was primarily attributable to decrease d SG&A of $3.6 million (including a decrease due to currency effects of approximately one million ), partially offset by the $0.6 million decrease in gross profit. The decrease in SG&A was primarily due to savings achieved and decreased charges related to our Realignment Programs and lower selling-related expenses compared to the same period in 2016 .

Backlog of $615.3 million  at March 31, 2017 increase d by $30.8 million , or 5.3% , as compared with December 31, 2016 . Currency effects provided an increase of $6 million .

LIQUIDITY AND CAPITAL RESOURCES

Cash Flow and Liquidity Analysis

	Three Months Ended March 31,
(Amounts in millions)	2017			2016
Net cash flows provided (used) by operating activities	$	3.9		$	(8.6	)
Net cash flows used by investing activities	(15.5		)	(20.1		)
Net cash flows used by financing activities	(38.8		)	(37.9		)

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

25

basis, and we believe that we have placed our deposits with creditworthy financial institutions. Our sources of operating cash generally include the sale of our products and services and the conversion of our working capital, particularly accounts receivable and inventories. Our cash balance at March 31, 2017 was $325.8 million , as compared with $367.2 million at December 31, 2016 .

Our cash balance decrease d by $41.4 million  to $325.8 million at March 31, 2017 as compared with December 31, 2016 . The cash used during the first three months of 2017 included $24.8 million in dividend payments, $15.9 million in capital expenditures and $15.0 million of payments on long-term debt.

For the three months ended March 31, 2017 , our cash provided by operating activities was $3.9 million , as compared with cash used of $8.6 million for the same period in 2016 . Cash flow used by working capital decreased for the three months ended March 31, 2017 , due primarily to decreased uses of cash related to inventory and accounts payable, partially offset by decreased source of cash related to accounts receivable and an increased use of cash related to accrued liabilities and income taxes payable as compared to the same period in 2016.

Decreases in accounts receivable provided $67.5 million of cash flow for the three months ended March 31, 2017 as compared with $91.4 million for the same period in 2016 . The decrease in accounts receivable was primarily attributable to lower sales during the period as compared to the same period in 2016. As of March 31, 2017 our days’ sales outstanding ("DSO") was 86  days as compared with 91 days as of March 31, 2016 .

Increases in inventory used $27.1 million and $67.9 million of cash flow for the three months ended March 31, 2017 and March 31, 2016 , respectively. Inventory turns were 2.5 times at March 31, 2017 as compared with 2.4 times for the same period in 2016 . Our calculation of inventory turns does not reflect the impact of advanced cash received from our customers. Decreases in accounts payable used $60.7 million of cash flow for the three months ended March 31, 2017 as compared with $89.8 million for the same period in 2016 . Decreases in accrued liabilities and income taxes payable used $36.0 million of cash flow for the three months ended March 31, 2017 as compared with $16.6 million for the same period in 2016 .

Cash flows used by investing activities during the three months ended March 31, 2017 were $15.5 million as compared with $20.1 million for the same period in 2016. Capital expenditures during the three months ended March 31, 2017 were $15.9 million, a decrease of $4.4 million as compared with the same period in 2016. Our capital expenditures are generally focused on strategic initiatives to pursue new markets, geographic expansion, information technology infrastructure, ongoing scheduled replacements and upgrades and cost reduction opportunities. In 2017, total capital expenditures are expected to be between $80 million and $90 million.

Cash flows used by financing activities during the three months ended March 31, 2017 were $38.8 million as compared with $37.9 million for the same period in 2016. Cash outflows during the three months ended March 31, 2017 resulted primarily from $24.8 million of dividend payments and $15.0 million of payments on long-term debt.

Our Senior Credit Facility matures in October 2020. Approximately 21% of our outstanding Term Loan Facility is due to mature in the remainder of 2017 and approximately 29% in 2018. As of March 31, 2017, we had available capacity of $419.8 million on our $1.0 billion Revolving Credit Facility. Our borrowing capacity is subject to financial covenant limitations based on the terms of our Senior Credit Facility and is also reduced by outstanding letters of credit. Our Revolving Credit Facility is committed and held by a diversified group of financial institutions.

During each of the three months ended March 31, 2017 and 2016 we made no cash contributions to our U.S. pension plan. At December 31, 2016 our U.S. pension plan was fully funded as defined by applicable law. After consideration of our funded status, we currently anticipate making $20 million in contributions to our U.S. pension plan in 2017, excluding direct benefits paid. We continue to maintain an asset allocation consistent with our strategy to maximize total return, while reducing portfolio risks through asset class diversification.

At March 31, 2017, $304.0 million of our total cash balance of $325.8 million was held by foreign subsidiaries, $178.7 million of which we consider permanently reinvested outside the U.S. Based on the expected near-term liquidity needs of our various geographies and our currently available sources of domestic short-term liquidity, we currently do not anticipate the need to repatriate any permanently reinvested cash to fund domestic operations that would generate adverse tax results. However, in the event this cash is needed to fund domestic operations, we estimate the full $178.7 million could be repatriated resulting in a U.S. cash tax liability between $5.0 million and $15.0 million. Should we be required to repatriate this cash, it could limit our ability to assert permanent reinvestment of foreign earnings and invested capital in future periods.

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

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On November 13, 2014, our Board of Directors approved a $500.0 million share repurchase authorization, of which as of March 31, 2017, we have $160.7 million of remaining capacity. While we intend to continue to return cash through dividends and/or share repurchases for the foreseeable future, any future returns of cash through dividends and/or share repurchases will be reviewed individually, declared by our Board of Directors and implemented by management at its discretion, depending on our financial condition, business opportunities and market conditions at such time.

Financing

Credit Facilities

See Note 11 to our consolidated financial statements included in our 2016 Annual Report and Note 5 to our condensed consolidated financial statements included in this Quarterly Report for a discussion of our Senior Credit Facility and covenants related to our Senior Credit Facility. We complied with all covenants through March 31, 2017.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

Management’s discussion and analysis of financial condition and results of operations are based on our condensed consolidated financial statements and related footnotes contained within this Quarterly Report. Our critical accounting policies used in the preparation of our condensed consolidated financial statements were discussed in "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" of our 2016 Annual Report. These critical policies, for which no significant changes have occurred in the three months ended March 31, 2017, include:

• Revenue Recognition;

• Deferred Taxes, Tax Valuation Allowances and Tax Reserves;

• Reserves for Contingent Loss;

• Retirement and Postretirement Benefits; and

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

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

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

ACCOUNTING DEVELOPMENTS

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

Cautionary Note Regarding Forward-Looking Statements

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

The forward-looking statements included in this Quarterly Report are based on our current expectations, projections, estimates and assumptions. These statements are only predictions, not guarantees. Such forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict. These risks and uncertainties may cause actual results to differ materially from what is forecast in such forward-looking statements, and include, without limitation, the following:

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

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

• our dependence on our customers' ability to make required capital investment and maintenance expenditures;

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

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

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

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

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

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

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

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

• a foreign government investigation regarding our participation in the United Nations Oil-For-Food Program;

• expectations regarding acquisitions and the integration of acquired businesses;

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

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

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

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

• environmental compliance costs and liabilities;

• potential work stoppages and other labor matters;

• access to public and private sources of debt financing;

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

• obligations under our defined benefit pension plans;

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

• our inability to execute and realize the expected financial benefits of our strategic manufacturing optimization and other cost-saving initiatives.

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

These and other risks and uncertainties are more fully discussed in the risk factors identified in "Item 1A. Risk Factors" in Part I of our 2016 Annual Report and Part II of this 10-Q/A, and may be identified in our Quarterly Reports on Form 10-Q and our other filings with the SEC and/or press releases from time to time. All forward-looking statements included in this document are based on information available to us on the date hereof, and we assume no obligation to update any forward-looking statement.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

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

Interest Rate Risk

Our earnings are impacted by changes in short-term interest rates as a result of borrowings under our Senior Credit Facility, which bear interest based on floating rates. At March 31, 2017, we had $210.0 million of variable rate debt obligations outstanding under our Senior Credit Facility with a weighted average interest rate of 2.40%. A hypothetical change of 100 basis points in the interest rate for these borrowings, assuming constant variable rate debt levels, would have changed interest expense by $1.0 million for the three months ended March 31, 2017.

Foreign Currency Exchange Rate Risk

A substantial portion of our operations are conducted by our subsidiaries outside of the U.S. in currencies other than the U.S. dollar. Almost all of our non-U.S. subsidiaries conduct their business primarily in their local currencies, which are also their functional currencies. Foreign currency exposures arise from translation of foreign-denominated assets and liabilities into U.S. dollars and from transactions, including firm commitments and anticipated transactions, denominated in a currency other than a non-U.S. subsidiary’s functional currency. In March 2015, we designated €255.7 million of our €500.0 million 2022 Euro Senior Notes as a net investment hedge of our investments in certain of our international subsidiaries that use the Euro as their functional currency. Generally, we view our investments in foreign subsidiaries from a long-term perspective and use capital structuring techniques to manage our investment in foreign subsidiaries as deemed necessary. We realized net gains associated with foreign currency translation of $33.8 million and $32.5 million for the three months March 31, 2017 and 2016 , respectively, which are included in other comprehensive income .

We employ a foreign currency risk management strategy to minimize potential changes in cash flows from unfavorable foreign currency exchange rate movements. Where available, the use of foreign exchange contracts allows us to mitigate transactional exposure to exchange rate fluctuations as the gains or losses incurred on the foreign exchange contracts will offset, in whole or in part, losses or gains on the underlying foreign currency exposure. Our policy allows foreign currency coverage only for identifiable foreign currency exposures and beginning in the fourth quarter of 2013 instruments that meet certain criteria are designated for hedge accounting. As of March 31, 2017 , we had a U.S. dollar equivalent of $387.0 million  in aggregate notional amount outstanding in foreign exchange contracts with third parties, as compared with $393.8 million  at December 31, 2016 . Transactional currency gains and losses arising from transactions outside of our sites’ functional currencies and changes in fair value of non-designated foreign exchange contracts are included in our consolidated results of operations. We recognized foreign currency net losses of $11.0 million and $4.6 million for the three months ended March 31, 2017 and 2016 , respectively, which are included in other expense, net in the accompanying condensed consolidated statements of income.

Based on a sensitivity analysis at March 31, 2017 , a 10% change in the foreign currency exchange rates for the three months ended March 31, 2017 would have impacted our net earnings by approximately $2 million . This calculation assumes that all currencies change in the same direction and proportion relative to the U.S. dollar and that there are no indirect effects, such as changes in non-U.S. dollar sales volumes or prices. This calculation does not take into account the impact of the foreign currency exchange contracts discussed above.

Item 4. Controls and Procedures.

Disclosure Controls and Procedures

Disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Exchange Act) are controls and other procedures that are designed to ensure that the information that we are required to disclose in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and

27

forms, and that such information is accumulated and communicated to our management, including our Principal Executive Officer and Principal Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

In connection with the preparation of this Quarterly Report, our management, under the supervision and with the participation of our Principal Executive Officer and Principal Financial Officer, carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2017 . At the time that our Quarterly Report on Form 10-Q for the period ended March 31, 2017 was filed, our Principal Executive Officer and Principal Financial Officer concluded that our disclosure controls and procedures were effective as of March 31, 2017. Subsequent to that evaluation, our management, including our current Principal Executive Officer and Principal Financial Officer, concluded that our disclosure controls and procedures were not effective as of March 31, 2017 because of the material weaknesses in our internal control over financial reporting described in Item 9A. Controls and Procedures in our Form 10-K/A for the fiscal year ended December 31, 2016.

Remediation Plan

In the second quarter of fiscal 2017, management became actively engaged in the planning for, and implementation of, remediation efforts to address the material weaknesses in our internal control over financial reporting identified above. Management intends to implement the following steps:

• enhance the current business process review control procedures to include additional prior period comparisons and additional key ratios, metrics and risk based criteria as determined by management;

• enhance the detailed site and/or process balance sheet reviews based on criteria determined by management’s risk assessment including manual journal entries;

• conduct enhanced ethics, controls and policy training for employees at the one non-U.S. site where certain employees engaged in conduct that circumvented controls.

Management believes the measures described above and others that may be implemented will remediate the material weaknesses that we have identified. As management continues to evaluate and improve internal control over financial reporting, we may decide to take additional measures to address control deficiencies or determine to modify, or in appropriate circumstances not to complete, certain of the remediation measures identified.

Changes in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the quarter ended March 31, 2017 that have materially affected, or are reasonably likely to materially affect our internal control over financial reporting.

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PART II — OTHER INFORMATION

Item 1. Legal Proceedings.

We are party to the legal proceedings that are described in Note 9 to our condensed consolidated financial statements included in "Item 1. Financial Statements" of this Quarterly Report, and such disclosure is incorporated by reference into this "Item 1. Legal Proceedings." In addition to the foregoing, we and our subsidiaries are named defendants in certain other ordinary routine lawsuits incidental to our business and are involved from time to time as parties to governmental proceedings, all arising in the ordinary course of business. Although the outcome of lawsuits or other proceedings involving us and our subsidiaries cannot be predicted with certainty, and the amount of any liability that could arise with respect to such lawsuits or other proceedings cannot be predicted accurately, management does not currently expect the amount of any liability that could arise with respect to these matters, either individually or in the aggregate, to have a material adverse effect on our financial position, results of operations or cash flows.

Item 1A. Risk Factors.

There are numerous factors that affect our business and results of operations, many of which are beyond our control. In addition to other information set forth in this Quarterly Report, careful consideration should be given to "Item 1A. Risk Factors" in Part I and "Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations" in Part II of our 2016 Annual Report, which contain descriptions of significant factors that might cause the actual results of operations in future periods to differ materially from those currently expected or desired.

There have been no material changes in risk factors discussed in our 2016 Annual Report and subsequent SEC filings. The risks described in this Quarterly Report, our 2016 Annual Report and in our other SEC filings or press releases from time to time are not the only risks we face. Additional risks and uncertainties are currently deemed immaterial based on management's assessment of currently available information, which remains subject to change; however, new risks that are currently unknown to us may surface in the future that materially adversely affect our business, financial condition, results of operations or cash flows.

Item 6. Exhibits.

A list of exhibits filed or furnished as part of this Quarterly Report on Form 10-Q is set forth on the Exhibits Index immediately following the signature page of this report and is incorporated herein by reference.

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SIGNATURES

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

		FLOWSERVE CORPORATION
Date:	August 11, 2017	/s/ R. Scott Rowe
		R. Scott Rowe
		President and Chief Executive Officer (Principal Executive Officer)

Date:	August 11, 2017	/s/ John E. Roueche III
		John E. Roueche III
		Vice President and Interim Chief Financial Officer (Principal Financial Officer)

30

Exhibits Index

Exhibit No.	Description
31.1+	Certification of Principal Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2+	Certification of Principal Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1++	Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2++	Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

_______________________

+     Filed herewith.

++ Furnished herewith.

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EX-31.1

EXHIBIT 31.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, R. Scott Rowe, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q/A for the fiscal quarter ended March 31, 2017 of Flowserve Corporation;

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

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

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

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

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

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

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

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

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

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

Date: August 11, 2017

/s/ R. Scott Rowe

R. Scott Rowe

President and Chief Executive Officer

(Principal Executive Officer) 

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302

OF THE SARBANES-OXLEY ACT OF 2002

I, John E. Roueche III, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q/A for the fiscal quarter ended March 31, 2017 of Flowserve Corporation;

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

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

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

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

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

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

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

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

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

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

Date: August 11, 2017

/s/ John E. Roueche III

John E. Roueche III

Vice President and Interim Chief Financial Officer

(Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

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

(1) the Quarterly Report on Form 10-Q/A of the Company for the period ended March 31, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Quarterly Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

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

Date: August 11, 2017

/s/ R. Scott Rowe

R. Scott Rowe

President and Chief Executive Officer

(Principal Executive Officer) 

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

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

(1) the Quarterly Report on Form 10-Q/A of the Company for the period ended March 31, 2017, as filed with the Securities and Exchange Commission on the date hereof (the “Quarterly Report”), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

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

Date: August 11, 2017

/s/ John E. Roueche III

John E. Roueche III

Vice President and Interim Chief Financial Officer

(Principal Financial Officer)

XML

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 25, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	FLOWSERVE CORP
Entity Central Index Key	0000030625
Document Type	10-Q/A
Document Period End Date	Mar. 31, 2017
Amendment Flag	true
Amendment Description	The purpose of this Amendment is to update the previous filing to make certain revisions for immaterial accounting errors that were identified in the second quarter of 2017.  While not material to any prior annual or quarterly period, in order to facilitate comparisons among periods, we have filed this Amendment, as well as an Amendment to our Form 10-K for the fiscal year ended December 31, 2016, to reflect the revisions to our consolidated financial statements for the fiscal years ended December 31, 2016, 2015 and 2014 and to the unaudited condensed consolidated financial statements for the fiscal quarter ended March 31, 2017 and 2016.  We have determined that these errors were as a result of material weaknesses that existed in our internal control structure for the year ended December 31, 2016 and continued through the end of the second quarter of 2017.  We have added disclosures related to our lack of internal controls related to financial reporting.  This Amendment should be read in conjunction with our other filings made with the SEC subsequent to the Original filing.
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		130,618,272

XML

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Statement [Abstract]
Sales	$ 866,318	$ 946,221
Cost of sales	(597,880)	(641,067)
Gross profit	268,438	305,154
Selling, general and administrative expense	(222,084)	(237,549)
Net earnings from affiliates	3,455	3,319
Operating income	49,809	70,924
Interest expense	(14,696)	(14,568)
Interest income	624	676
Other expense, net	(11,128)	(5,564)
Earnings before income taxes	24,609	51,468
Provision for income taxes	(5,320)	(17,177)
Net earnings, including noncontrolling interests	19,289	34,291
Less: Net earnings attributable to noncontrolling interests	(239)	(425)
Net earnings attributable to Flowserve Corporation	$ 19,050	$ 33,866
Net earnings per share attributable to Flowserve Corporation common shareholders:
Basic (in dollars per share)	$ 0.15	$ 0.26
Diluted (in dollars per share)	0.15	0.26
Cash dividends declared per share (in dollars per share)	$ 0.19	$ 0.19

XML

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Net earnings, including noncontrolling interests	$ 19,289	$ 34,291
Other comprehensive income:
Foreign currency translation adjustments, net of taxes	33,786	32,499
Pension and other postretirement effects, net of taxes	484	2,786
Cash flow hedging activity, net of taxes	103	643
Other comprehensive income	34,373	35,928
Comprehensive income, including noncontrolling interests	53,662	70,219
Comprehensive income attributable to noncontrolling interests	(772)	(1,185)
Comprehensive income attributable to Flowserve Corporation	$ 52,890	$ 69,034

XML

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Statement of Comprehensive Income [Abstract]
Foreign currency translation, taxes	$ (20,074)	$ (19,356)
Pension and other postretirement effects, taxes	(356)	(742)
Cash flow hedging activity, taxes	$ (34)	$ (264)

XML

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 325,783	$ 367,162	$ 307,378	$ 366,444
Accounts receivable, net of allowance for doubtful accounts of $52,072 and $51,920, respectively	831,362	882,638
Inventories, net	940,000	897,690
Prepaid expenses and other	154,633	150,199
Total current assets	2,251,778	2,297,689
Property, plant and equipment, net of accumulated depreciation of $911,160 and $882,151, respectively	715,563	724,805
Goodwill	1,211,153	1,205,054
Deferred taxes	82,290	83,722
Other intangible assets, net	216,724	214,527
Other assets, net	186,668	183,126
Total assets	4,664,176	4,708,923
Current liabilities:
Accounts payable	354,566	412,087
Accrued liabilities	653,686	680,986
Debt due within one year	90,632	85,365
Total current liabilities	1,098,884	1,178,438
Long-term debt due after one year	1,477,549	1,485,258
Retirement obligations and other liabilities	415,844	407,839
Shareholders’ equity:
Common shares, $1.25 par value, Shares authorized - 305,000, Shares issued - 176,793	220,991	220,991
Capital in excess of par value	481,443	491,848
Retained earnings	3,595,368	3,598,396
Treasury shares, at cost – 46,575 and 46,980 shares, respectively	(2,063,085)	(2,078,527)
Deferred compensation obligation	6,641	8,507
Accumulated other comprehensive loss	(590,948)	(624,788)
Total Flowserve Corporation shareholders’ equity	1,650,410	1,616,427
Noncontrolling interests	21,489	20,961
Total equity	1,671,899	1,637,388
Total liabilities and equity	$ 4,664,176	$ 4,708,923

XML

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Allowance for doubtful accounts	$ 52,072	$ 51,920
Accumulated depreciation on property, plant and equipment	$ 911,160	$ 882,151
Shareholders’ equity:
Common shares, par value (in dollars per share)	$ 1.25	$ 1.25
Common shares, shares authorized	305,000,000	305,000,000
Common shares, shares issued	176,793,000	176,793,000
Treasury shares, shares	46,575,000	46,980,000

XML

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows – Operating activities:
Net earnings, including noncontrolling interests	$ 19,289	$ 34,291
Adjustments to reconcile net earnings to net cash provided (used) by operating activities:
Depreciation	24,586	24,505
Amortization of intangible and other assets	4,039	4,123
Stock-based compensation	11,307	15,957
Foreign currency and other non-cash adjustments	319	10,238
Change in assets and liabilities, net of acquisition:
Accounts receivable, net	67,466	91,399
Inventories, net	(27,110)	(67,918)
Prepaid expenses and other	(2,436)	3,960
Other assets, net	(5,074)	(9,095)
Accounts payable	(60,740)	(89,840)
Accrued liabilities and income taxes payable	(36,010)	(16,592)
Retirement obligations and other	2,253	844
Net deferred taxes	6,038	(10,497)
Net cash flows provided (used) by operating activities	3,927	(8,625)
Cash flows – Investing activities:
Capital expenditures	(15,862)	(20,212)
Proceeds from disposal of assets and other	367	101
Net cash flows used by investing activities	(15,495)	(20,111)
Cash flows – Financing activities:
Payments on long-term debt	(15,000)	(15,000)
Proceeds under other financing arrangements	5,715	14,009
Payments under other financing arrangements	(1,314)	(11,017)
Excess tax benefits from stock-based payment arrangements	(3,198)	(2,356)
Payments of dividends	(24,785)	(23,415)
Other	(244)	(142)
Net cash flows used by financing activities	(38,826)	(37,921)
Effect of exchange rate changes on cash	9,015	7,591
Net change in cash and cash equivalents	(41,379)	(59,066)
Cash and cash equivalents at beginning of period	367,162	366,444
Cash and cash equivalents at end of period	$ 325,783	$ 307,378

XML

Basis of Presentation and Accounting Policies

3 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

Basis of Presentation and Accounting Policies

Basis of Presentation and Accounting Policies

Basis of Presentation

The accompanying condensed consolidated balance sheet as of March 31, 2017, the related condensed consolidated statements of income and comprehensive income for the three months ended March 31, 2017 and 2016, and the condensed consolidated statements of cash flows for the three months ended March 31, 2017 and 2016, of Flowserve Corporation are unaudited. In management’s opinion, all adjustments comprising normal recurring adjustments necessary for fair statement of such condensed consolidated financial statements have been made. Where applicable, prior period information has been updated to conform to current year presentation.

The accompanying condensed consolidated financial statements and notes in this Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2017 ("Quarterly Report") are presented as permitted by Regulation S-X and do not contain certain information included in our annual financial statements and notes thereto. Accordingly, the accompanying condensed consolidated financial information should be read in conjunction with the audited consolidated financial statements presented in our Amended Annual Report on Form 10-K/A for the year ended December 31, 2016 ("2016 Annual Report").

Revision to Previously Reported Financial Information - In the second quarter of 2017, we identified accounting errors focused mainly at two of our non-U.S. sites in the inventory, accounts receivable, cost of sales and selling, general and administrative expense balances for prior periods through the first quarter of 2017. We have assessed these errors, individually and in the aggregate, and concluded that they are not material to any prior annual or interim period. However, to facilitate comparisons among periods we have revised our previously issued audited consolidated financial information for fiscal years ended December 31, 2014, 2015 and 2016 and unaudited condensed consolidated financial information for the interim periods of 2016 and the three months ended March 31, 2017. We also corrected the timing of immaterial previously recorded out-of-period adjustments and reflected them in the revised prior period financial statements, where applicable.  Prior periods not presented herein will be revised, as applicable, in future filings. See Note 2 for more information.

Venezuela – Our operations in Venezuela primarily consist of a service center that performs service and repair activities. Our Venezuelan subsidiary's sales for the three months ended March 31, 2017 represented less than 0.5% of consolidated sales and its assets at March 31, 2017 represented less than 0.5% of total consolidated assets. Assets primarily consisted of United States ("U.S.") dollar-denominated monetary assets and bolivar-denominated non-monetary assets at March 31, 2017. In addition, certain of our operations in other countries sell equipment and parts that are typically denominated in U.S. dollars directly to Venezuelan customers. In the third quarter of 2016 we recorded a charge of $73.5 million to selling, general and administrative expense ("SG&A") to fully reserve for those potentially uncollectible accounts receivable and a charge to cost of sales ("COS") of $1.9 million to reserve for related net inventory exposures. We continue to pursue payments from our Venezuelan customer.

At March 31, 2017 the DICOM exchange rate was 709.7 bolivars to the U.S. dollar, compared with the official exchange rate of 10.0 bolivars to the U.S. dollar. As of March 31, 2017, we believe the DICOM exchange rate continues to be the most appropriate rate to remeasure the U.S. dollar value of the assets, liabilities and results of operations of our Venezuelan subsidiary.

Valuation of Goodwill, Indefinite-Lived Intangible Assets and Other Long-Lived Assets – As discussed in Note 1 to our consolidated financial statements included in our 2016 Annual Report, the value of our 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.

We did not record an impairment of goodwill in 2016, 2015 or 2014; however at December 31, 2016 the estimated fair value of our Engineered Product Operations ("EPO") and Industrial Product Division ("IPD") reporting units reduced significantly due to broad-based capital spending declines and heightened pricing pressure experienced in the oil and gas markets which are anticipated to continue in the near to mid-term. Although we concluded that there is no impairment on the goodwill associated with our EPO and IPD reporting units as of December 31, 2016, we will continue to closely monitor their performance and related market conditions for future indicators of potential impairment and reassess accordingly.

Accounting Policies

Significant accounting policies, for which no significant changes have occurred in the three months ended March 31, 2017, are detailed in Note 1 to our consolidated financial statements included in our 2016 Annual Report.

Accounting Developments

Pronouncements Implemented

In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." The ASU updates represent changes to simplify the subsequent measurement of inventory. Previous to the issuance of this ASU, ASC 330 required that an entity measure inventory at the lower of cost or market. The amendments of ASU 2015-11 updates that “market” requirement to “net realizable value,” which is defined by the ASU as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Our adoption of ASU No. 2015-11 effective January 1, 2017 did not have an impact on our consolidated financial condition and results of operations.

In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting." The ASU affects the accounting for employee share-based payment transactions as it relates to accounting for income taxes, accounting for forfeitures, and statutory tax withholding requirements. We adopted the provisions of ASU 2016-09 as of January 1, 2017. The adoption resulted in the recognition of approximately $1 million of tax expense in our provision of income taxes and an approximately $3 million one-time, cumulative adjustment to beginning retained earnings related to the change in our accounting policy for estimated forfeitures and share cancellations. In addition, in our statements of cash flows we reclassified cash outflows for employee taxes paid from operating to financing and elected to reclassify cash impacts due to excess tax deficiencies and benefits from financing to operating, which resulted in a net reclassification of approximately $2 million of cash flows used from operating to financing for the three months ended March 31, 2016.

Pronouncements Not Yet Implemented

In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" which supersedes most of the revenue recognition requirements in "Revenue Recognition (Topic 605)." The standard is principle-based and provides a five-step model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Companies are permitted to adopt the new standard using one of two transition methods. Under the full retrospective method, the requirements of the new standard are applied to contracts for each prior reporting period presented and the cumulative effect of applying the standard is recognized in the earliest period presented. Under the modified retrospective method the requirements of the new standard are applied to contracts that are open as of January 1, 2018, the required date of adoption and the cumulative effect of applying the standard is recognized as an adjustment to beginning retained earnings in that same year. The standard also includes significantly expanded disclosure requirements for revenue. Since 2014, the FASB has issued several updates to Topic 606.

We are currently evaluating the impact of ASU No. 2014-09 and all related ASU's on our consolidated financial condition and results of operations. We plan to adopt the new revenue guidance effective January 1, 2018 using the modified retrospective method for transition. In 2015, we established a cross-functional implementation team consisting of representatives from across all of our reportable segments to begin the process of analyzing the impact of the standard on our contracts. The preliminary results of our evaluation, which is still in process, indicate that one of the changes upon adoption may be potentially increased “over-time” revenue recognition. Historically, revenue recognized under the percentage of completion method is less than 7% of our consolidated sales. We also anticipate changes to the consolidated balance sheet related to accounts receivable, contract assets and contract liabilities. Additionally, we are in the process of evaluating and designing the necessary changes to our business processes, systems and controls to support recognition and disclosure under the new standard. We are continuing our evaluation to determine the impact on our consolidated financial condition and results of operations.

In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." The ASU requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value with changes in fair value recognized in net income. The ASU also requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The requirement to disclose the method(s) and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost on the balance sheet has been eliminated by this ASU. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are currently evaluating the impact of ASU No. 2016-01 on our consolidated financial condition and results of operations.

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”.  The ASU requires that organizations that lease assets recognize assets and liabilities on the balance sheet for the rights and obligations created by those leases.  The ASU will affect the presentation of lease related expenses on the income statement and statement of cash flows and will increase the required disclosures related to leases.  This ASU is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years with early adoption permitted.  We are currently evaluating the impact of ASU No. 2016-02 on our consolidated financial condition and results of operations.  Although we are continuing to evaluate, upon initial qualitative evaluation, we believe a key change upon adoption will be the balance sheet recognition of leased assets and liabilities. Based on our qualitative evaluation to date, we believe that any changes in income statement recognition will not be material.

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments." The amendments in this ASU replace the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We are currently evaluating the impact of ASU No. 2016-13 on our consolidated financial condition and results of operations.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments - A consensus of the FASB Emerging Issues Task Force.” The update was issued with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230 and other topics. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of ASU No. 2016-15 is not expected to have a material impact on our consolidated financial condition and results of operations.

In October 2016, the FASB issued ASU No. 2016-16, "Income Taxes (Topic 740) Intra-Entity Transfers of Assets Other Than Inventory." The ASU guidance requires the recognition of the income tax consequences of an intercompany asset transfer, other than transfers of inventory, when the transfer occurs. For intercompany transfers of inventory, the income tax effects will continue to be deferred until the inventory has been sold to a third party. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the impact of ASU No. 2016-16 on our consolidated financial condition and results of operations.

In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash." The amendments in this ASU require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The ASU is effective for reporting periods beginning after December 15, 2017, including interim periods with those fiscal years. The adoption of ASU No. 2016-18 is not expected to have a material impact on our consolidated financial condition and results of operations.

In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): "Clarifying the Definition of a Business." The ASU clarifies the definition of a business and provides guidance on evaluating as to whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition clarification as outlined in this ASU affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments of the ASU are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The adoption of ASU No. 2017-01 is not expected to have a material impact on our consolidated financial condition and results of operations.

In January 2017, the FASB issued ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The amendments in this ASU allow companies to apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The amendments of the ASU are effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We are currently evaluating the impact of ASU No. 2017- 04 on our consolidated financial condition and results of operations.

In February 2017, the FASB issued ASU No. 2017-05, "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets." The FASB issued this ASU to clarify the scope of subtopic 610-20, which the FASB had failed to define in its issuance of ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." ASU No. 2017-05 will be effective concurrently with ASU No. 2014-09. Similarly to ASU 2014-09, we are continuing our evaluation of ASU No. 2017-05 to determine the impact on our consolidated financial condition and results of operations.

On March 10, 2017, the FASB issued ASU No. 2017-07, "Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The amendments of this ASU provide additional guidance intended to improve the presentation of net benefit costs pension costs and net periodic postretirement costs. The amendments of the ASU must be applied to annual reporting periods beginning after December 15, 2017, and to quarterly periods in 2018, early adoption of the standard is permitted. We are currently evaluating the impact of ASU No. 2017- 07 on our consolidated financial condition and results of operations.

XML

Accounting Errors and Corrections (Notes)

3 Months Ended

Mar. 31, 2017

Accounting Changes and Error Corrections [Abstract]

Accounting Changes and Error Corrections [Text Block]

Revision to Previously Reported Financial Information

In the second quarter of 2017, we identified accounting errors focused mainly at two of our non-U.S. sites in the inventory, accounts receivable, cost of sales and selling, general and administrative expense balances for prior periods through the first quarter of 2017. We have assessed these errors, individually and in the aggregate, and concluded that they are not material to any prior annual or interim period. However, to facilitate comparisons among periods we have revised our previously issued audited consolidated financial information for fiscal years ended December 31, 2014, 2015 and 2016 and unaudited condensed consolidated financial information for the interim periods of 2016 and the three months ended March 31, 2017. We also corrected the timing of immaterial previously recorded out-of-period adjustments and reflected them in the revised prior period financial statements, where applicable.  Prior periods not presented herein will be revised, as applicable, in future filings.

The following table presents the effect of the prior period revisions on the affected line items of our condensed consolidated balance sheet as of March 31, 2017:

	March 31, 2017
(Amounts in thousands)	As Reported			Adjustments			As Revised
Accounts receivable, net (1)	$	844,597		$	(13,235	)	$	831,362
Inventories, net (2)	957,120			(17,120		)	940,000
Total current assets	2,282,133			(30,355		)	2,251,778
Deferred taxes (3)	84,590			(2,300		)	82,290
Total assets	4,696,831			(32,655		)	4,664,176
Accrued liabilities	654,025			(339		)	653,686
Total current liabilities	1,099,223			(339		)	1,098,884
Retirement obligations and other liabilities	418,196			(2,352		)	415,844
Retained earnings (4)	3,624,907			(29,539		)	3,595,368
Accumulated other comprehensive loss	(590,523		)	(425		)	(590,948		)
Total Flowserve Corporation shareholders’ equity	1,680,374			(29,964		)	1,650,410
Total equity	1,701,863			(29,964		)	1,671,899
Total liabilities and equity	$	4,696,831		$	(32,655	)	$	4,664,176

(1) The adjustments to accounts receivable, net are primarily related to receivables at one non-U.S. manufacturing site of $(10.5) million from our primary Venezuelan customer. These receivables should have been classified as long-term receivables and included in the charge that we recorded in the third quarter of 2016 to fully reserve all the potentially uncollectible receivables. This adjustment related to our EPD segment.

(2) The inventory adjustments primarily include corrections for errors at one non-U.S. manufacturing site related to inventory manufacturing cost variances of $(5.3) million, excess and obsolete reserve of $(3.0) million, inappropriate costs capitalized to projects in process of $(4.8) million and the write-off of non-recoverable work in process of $(3.8) million. The inventory manufacturing cost variances are capitalized to reflect inventory balances at actual cost, however, the non-U.S. site inappropriately overstated the costs subject to capitalization, primarily during 2016. The excess and obsolete reserve did not consider all inventory items resulting in an understatement of the reserve. The inappropriate costs were attributable to multiple projects over multiple periods for which no costs had been incurred or for which costs were incurred for warranty items that should have been expensed. The non-recoverable work in process related to projects which had previously shipped but the related costs were not appropriately removed from inventory. These adjustments were attributable to our IPD segment other than $(3.3) million of write-off of non-recoverable work in progress that were attributable to our EPD segment.

(3) The deferred tax asset adjustments primarily related to deferred tax assets of $(6.5) million that previously were determined to be more likely than not realizable, partially offset by the tax effect of other revision adjustments. However, as a result of the adjustments described above, it was determined the deferred tax assets would not be realized.

(4) The adjustment to retained earnings represents the cumulative effect of the errors that were corrected in current and prior periods.

The following table presents the effect of the prior period revisions on the affected line items of our condensed consolidated balance sheet as of December 31, 2016:

	December 31, 2016
(Amounts in thousands)	As Reported			Adjustments			As Revised
Accounts receivable, net (1)	894,749			(12,111		)	882,638
Inventories, net (2)	919,251			(21,561		)	897,690
Total current assets	2,331,361			(33,672		)	2,297,689
Property, plant and equipment, net	723,628			1,177			724,805
Deferred taxes (3)	87,178			(3,456		)	83,722
Other assets, net	181,014			2,112			183,126
Total assets	$	4,742,762		$	(33,839	)	$	4,708,923
Accrued liabilities	680,689			297			680,986
Total current liabilities	1,178,141			297			1,178,438
Retirement obligations and other liabilities	410,168			(2,329		)	407,839
Retained earnings (4)	3,632,163			(33,767		)	3,598,396
Accumulated other comprehensive loss	(626,748		)	1,960			(624,788		)
Total Flowserve Corporation shareholders’ equity	1,648,234			(31,807		)	1,616,427
Noncontrolling interests	20,961			—			20,961
Total equity	1,669,195			(31,807		)	1,637,388
Total liabilities and equity	$	4,742,762		$	(33,839	)	$	4,708,923

_______________________________________

(1) The adjustments to accounts receivable, net are primarily related to receivables at one non-U.S. manufacturing site of $(9.5) million from our primary Venezuelan customer. These receivables should have been classified as long-term receivables and included in the charge that we recorded in the third quarter of 2016 to fully reserve all the potentially uncollectible receivables. This adjustment related to our EPD segment.

(2) The inventory adjustments primarily include corrections for errors at one non-U.S. manufacturing site related to inventory manufacturing cost variances of $(5.9) million, excess and obsolete reserve of $(2.5) million, inappropriate costs capitalized to projects in process of $(8.3) million and the write-off of non-recoverable work in process of $(3.3) million. The inventory manufacturing cost variances are capitalized to reflect inventory balances at actual cost, however, the non-U.S. site inappropriately overstated the costs subject to capitalization, primarily during 2016. The excess and obsolete reserve did not consider all inventory items resulting in an understatement of the reserve. The inappropriate costs were attributable to multiple projects over multiple periods for which no costs had been incurred or for which costs were incurred for warranty items that should have been expensed. The non-recoverable work in process related to projects which had previously shipped but the related costs were not appropriately removed from inventory. These adjustments were attributable to our IPD segment other than $(3.6) million of the inappropriate capitalized cost and $(2.8) million of write-off of non-recoverable work in progress that were attributable to our EPD segment.

(3) The deferred tax asset adjustments primarily related to deferred tax assets of $(6.4) million that previously were determined to be more likely than not realizable, partially offset by the tax effect of other revision adjustments. However, as a result of the adjustments described above, it was determined the deferred tax assets would not be realized.

(4) The adjustment to retained earnings represents the cumulative effect of the errors that were corrected in current and prior periods.

The following table presents the effect of the prior period revisions on the affected line items of our condensed consolidated statement of income for the three months ended March 31, 2017:

(Amounts in thousands, except per share data)	Three Months Ended March 31, 2017
	As Reported			Adjustments			As Revised
Sales	$	863,626		$	2,692		$	866,318
Cost of sales	(599,746		)	1,866			(597,880		)
Gross profit	263,880			4,558			268,438
Selling, general and administrative expense	(222,029		)	(55		)	(222,084		)
Net earnings from affiliates	5,165			(1,710		)	3,455
Operating income	47,016			2,793			49,809
Earnings before income taxes	21,817			2,792			24,609
Provision for income taxes	(6,755		)	1,435			(5,320		)
Net earnings, including noncontrolling interests	15,062			4,227			19,289
Net earnings attributable to Flowserve Corporation	$	14,823		$	4,227		$	19,050
Net earnings per share attributable to Flowserve Corporation common shareholders:
Basic	$	0.11		$	0.04		$	0.15
Diluted	0.11			0.04			0.15

The following table presents the effect of the prior period revisions on the affected line items of our condensed consolidated statement of income for the three months ended March 31, 2016:

(Amounts in thousands, except per share data)	Three Months Ended March 31, 2016
	As Reported			Adjustments			As Revised
Sales	$	947,248		$	(1,027	)	$	946,221
Cost of sales	(639,247		)	(1,820		)	(641,067		)
Gross profit	308,001			(2,847		)	305,154
Selling, general and administrative expense	(236,910		)	(639		)	(237,549		)
Operating income	74,410			(3,486		)	70,924
Other expense, net	(4,543		)	(1,021		)	(5,564		)
Earnings before income taxes	55,975			(4,507		)	51,468
Provision for income taxes	(17,691		)	514			(17,177		)
Net earnings, including noncontrolling interests	38,284			(3,993		)	34,291
Net earnings attributable to Flowserve Corporation	$	37,859		$	(3,993	)	$	33,866
Net earnings per share attributable to Flowserve Corporation common shareholders:
Basic	$	0.29		$	(0.03	)	$	0.26
Diluted	0.29			(0.03		)	0.26

The effect of the revision adjustments to the condensed consolidated statements of cash flows for the three months ended March 31, 2016 and March 31, 2017 related to net earnings, including noncontrolling interests for the change in net earnings in the table above offset primarily by impacts to changes in assets and liabilities. The revisions to individual line items within changes in assets and liabilities were below $3 million except for an increase of $4.4 million to the change in inventory, net for the three months ended March 31, 2017. Additionally, we adopted ASU 2016-09 on January 1, 2017, see Note 1 for further discussion of the impact of that adoption on our statements of cash flows.

The impacts of the revisions have been reflected throughout the financial statements, including the applicable footnotes, as appropriate.

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Stock-Based Compensation Plans

3 Months Ended

Mar. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation Plans

Stock-Based Compensation Plans

We maintain the Flowserve Corporation Equity and Incentive Compensation Plan (the "2010 Plan"), which is a shareholder-approved plan authorizing the issuance of up to 8,700,000 shares of our common stock in the form of restricted shares, restricted share units and performance-based units (collectively referred to as "Restricted Shares"), incentive stock options, non-statutory stock options, stock appreciation rights and bonus stock. Of the 8,700,000 shares of common stock authorized under the 2010 Plan, 2,832,115 were available for issuance as of March 31, 2017. In 2016 the long-term incentive program was amended to allow Restricted Shares granted after January 1, 2016 to employees who retire and have achieved at least 55 years of age and 10 years of service to continue to vest over the original vesting period ("55/10 Provision"). As of March 31, 2017, no stock options have been granted since 2006.

Restricted Shares – Awards of Restricted Shares are valued at the closing market price of our common stock on the date of grant. The unearned compensation is amortized to compensation expense over the vesting period of the restricted shares, except for awards related to the 55/10 Provision which are expensed in the period granted. We had unearned compensation of $25.0 million and $15.2 million at March 31, 2017 and December 31, 2016, respectively, which is expected to be recognized over a weighted-average period of approximately two years. These amounts will be recognized into net earnings in prospective periods as the awards vest. The total fair value of Restricted Shares vested during the three months ended March 31, 2017 and 2016 was $25.7 million and $36.4 million, respectively.

We recorded stock-based compensation expense of $7.5 million ($11.3 million pre-tax) and $10.5 million ($16.0 million pre-tax) for the three months ended March 31, 2017 and 2016, respectively.

The following table summarizes information regarding Restricted Shares:

	Three Months Ended March 31, 2017
	Shares		Weighted Average Grant-Date Fair Value
Number of unvested shares:
Outstanding - January 1, 2017	1,259,275		$	50.77
Granted	523,235		50.49
Vested	(423,523	)	60.69
Canceled	(128,281	)	47.97
Outstanding as of March 31, 2017	1,230,706		$	47.53

Unvested Restricted Shares outstanding as of March 31, 2017, includes approximately 872,000 units with performance-based vesting provisions. Performance-based units are issuable in common stock and vest upon the achievement of pre-defined performance targets. Performance-based units granted prior to 2017 have performance targets based on our average annual return on net assets over a three-year period as compared with the same measure for a defined peer group for the same period. Performance-based units granted in 2017 have performance targets based on our average return on invested capital and our total shareholder return ("TSR") over a three-year period as compared with the same measures for a defined peer group for the same period. Most units were granted in three annual grants since January 1, 2015 and have a vesting percentage between 0% and 200% depending on the achievement of the specific performance targets. Except for shares granted under the 55/10 Provision, compensation expense is recognized ratably over a cliff-vesting period of 36 months, based on the fair value of our common stock on the date of grant, as adjusted for actual forfeitures. During the performance period, earned and unearned compensation expense is adjusted based on changes in the expected achievement of the performance targets for all performance-based units granted except for the TSR-based units. Vesting provisions range from 0 to approximately 1,670,000 shares based on performance targets. As of March 31, 2017, we estimate vesting of approximately 636,000 shares based on expected achievement of performance targets.

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Derivative Instruments and Hedges

3 Months Ended

Mar. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedges

Derivative Instruments and Hedges

Our risk management and foreign currency derivatives and hedging policy specifies the conditions under which we may enter into derivative contracts. See Notes 1 and 7 to our consolidated financial statements included in our 2016 Annual Report and Note 6 of this Quarterly Report for additional information on our derivatives. We enter into foreign exchange forward contracts to hedge our cash flow risks associated with transactions denominated in currencies other than the local currency of the operation engaging in the transaction.

We had no foreign exchange contracts designated as hedging instruments as of March 31, 2017, compared to a notional value of $0.6 million as of December 31, 2016. Foreign exchange contracts with third parties not designated as hedging instruments had a notional value of $387.0 million and $393.2 million at March 31, 2017 and December 31, 2016, respectively. At March 31, 2017, the length of foreign exchange contracts currently in place ranged from three days to 20 months.

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

The fair value of foreign exchange contracts not designated as hedging instruments are summarized below:

	March 31,		December 31,
(Amounts in thousands)	2017		2016
Current derivative assets	$	2,909	$	682
Current derivative liabilities	3,210		6,878
Noncurrent derivative liabilities	114		355

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

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

	Three Months Ended March 31,
(Amounts in thousands)	2017		2016
Gain recognized in income	$	1,897	$	2,061

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

In March 2015, we designated €255.7 million of our €500.0 million Euro senior notes discussed in Note 5 as a net investment hedge of our investments in certain of our international subsidiaries that use the Euro as their functional currency. We used the spot method to measure the effectiveness of our net investment hedge. Under this method, for each reporting period, the change in the carrying value of the Euro senior notes due to remeasurement of the effective portion is reported in accumulated other comprehensive loss on our condensed consolidated balance sheet and the remaining change in the carrying value of the ineffective portion, if any, is recognized in other expense, net in our condensed consolidated statement of income. We evaluate the effectiveness of our net investment hedge on a prospective basis at the beginning of each quarter. We did not record any ineffectiveness for the three months ended March 31, 2017 or March 31, 2016.

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Debt

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

Debt

Debt

Debt, including capital lease obligations, consisted of:

	March 31,		December 31,
(Amounts in thousands, except percentages)	2017		2016
1.25% EUR Senior Notes due March 17, 2022, net of unamortized discount and debt issuance costs of $5,556 and $5,748	$	526,894	$	519,902
4.00% USD Senior Notes due November 15, 2023, net of unamortized discount and debt issuance costs of $2,878 and $2,972	297,122		297,028
3.50% USD Senior Notes due September 15, 2022, net of unamortized discount and debt issuance costs of $3,696 and $3,848	496,304		496,152
Term Loan Facility, interest rate of 2.40% at March 31, 2017 and 2.25% at December 31, 2016, net of debt issuance costs of $653 and $745	209,347		224,255
Capital lease obligations and other borrowings	38,514		33,286
Debt and capital lease obligations	1,568,181		1,570,623
Less amounts due within one year	90,632		85,365
Total debt due after one year	$	1,477,549	$	1,485,258

Senior Credit Facility

As discussed in Note 11 to our consolidated financial statements included in our 2016 Annual Report, our credit agreement provides for an initial $400.0 million term loan (“Term Loan Facility”) and a $1.0 billion revolving credit facility (“Revolving Credit Facility” and, together with the Term Loan Facility, the “Senior Credit Facility”) with a maturity date of October 14, 2020. As of March 31, 2017 and December 31, 2016, we had no amounts outstanding under the Revolving Credit Facility. We had outstanding letters of credit of $89.6 million and $102.6 million at March 31, 2017 and December 31, 2016, respectively. As of March 31, 2017 and December 31, 2016, due to a financial covenant in the Senior Credit Facility, the amount available for borrowings under our Revolving Credit Facility was effectively limited to $419.8 million and $553.5 million, respectively. Our compliance with applicable financial covenants under the Senior Credit Facility is tested quarterly, and we complied with all applicable covenants as of March 31, 2017.

We may prepay loans under our Senior Credit Facility in whole or in part, without premium or penalty, at any time. A commitment fee, which is payable quarterly on the daily unused portions of the Senior Credit Facility, was 0.150% (per annum) during the period ended March 31, 2017. During the three months ended March 31, 2017, we made scheduled repayments of $15.0 million under our Term Loan Facility. We have scheduled repayments of $15.0 million due in each of the next four quarters on our Term Loan Facility.

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Fair Value

3 Months Ended

Mar. 31, 2017

Fair Value Disclosures [Abstract]

Fair Value

Fair Value

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied. Assets and liabilities recorded at fair value in our condensed consolidated balance sheets are categorized by hierarchical levels based upon the level of judgment associated with the inputs used to measure their fair values. Recurring fair value measurements are limited to investments in derivative instruments. The fair value measurements of our derivative instruments are determined using models that maximize the use of the observable market inputs including interest rate curves and both forward and spot prices for currencies, and are classified as Level II under the fair value hierarchy. The fair values of our derivatives are included in Note 4.

Our financial instruments are presented at fair value in our condensed consolidated balance sheets, 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 5. The estimated fair value of our Senior Notes at March 31, 2017 was $1,348.5 million compared to the carrying value of $1,320.3 million. The estimated fair value of the Senior Notes is based on Level I quoted market rates. The carrying amounts of our other financial instruments (e.g., cash and cash equivalents, accounts receivable, net, accounts payable and short-term debt) approximated fair value due to their short-term nature at March 31, 2017 and December 31, 2016.

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Inventories

3 Months Ended

Mar. 31, 2017

Inventory Disclosure [Abstract]

Inventories

Inventories

Inventories, net consisted of the following:

	March 31,			December 31,
(Amounts in thousands)	2017			2016
Raw materials	$	361,685		$	348,012
Work in process	652,383			629,766
Finished goods	215,383			206,086
Less: Progress billings	(214,507		)	(216,783		)
Less: Excess and obsolete reserve	(74,944		)	(69,391		)
Inventories, net	$	940,000		$	897,690

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Earnings Per Share

3 Months Ended

Mar. 31, 2017

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

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

	Three Months Ended March 31,
(Amounts in thousands, except per share data)	2017		2016
Net earnings of Flowserve Corporation	$	19,050	$	33,866
Dividends on restricted shares not expected to vest	—		2
Earnings attributable to common and participating shareholders	$	19,050	$	33,868
Weighted average shares:
Common stock	130,393		129,781
Participating securities	169		361
Denominator for basic earnings per common share	130,562		130,142
Effect of potentially dilutive securities	713		670
Denominator for diluted earnings per common share	131,275		130,812
Earnings per common share:
Basic	$	0.15	$	0.26
Diluted	0.15		0.26

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

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Legal Matters and Contingencies

3 Months Ended

Mar. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Legal Matters and Contingencies

Legal Matters and Contingencies

Asbestos-Related Claims

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

Our practice is to vigorously contest and resolve these claims, and we have been successful in resolving a majority of claims with little or no payment. Historically, a high percentage of resolved claims have been covered by applicable insurance or indemnities from other companies, and we believe that a substantial majority of existing claims should continue to be covered by insurance or indemnities. Accordingly, we have recorded a liability for our estimate of the most likely settlement of asserted claims and a related receivable from insurers or other companies for our estimated recovery, to the extent we believe that the amounts of recovery are probable and not otherwise in dispute. While unfavorable rulings, judgments or settlement terms regarding these claims could have a material adverse impact on our business, financial condition, results of operations and cash flows, we currently believe the likelihood is remote.

Additionally, we have claims pending against certain insurers that, if resolved more favorably than reflected in the recorded receivables, would result in discrete gains in the applicable quarter. We are currently unable to estimate the impact, if any, of unasserted asbestos-related claims, although future claims would also be subject to then existing indemnities and insurance coverage.

United Nations Oil-for-Food Program

In mid-2006, the French authorities began an investigation of over 170 French companies, of which one of our French subsidiaries was included, concerning suspected inappropriate activities conducted in connection with the United Nations Oil for Food Program. As previously disclosed, the French investigation of our French subsidiary was formally opened in the first quarter of 2010, and our French subsidiary filed a formal response with the French court. In July 2012, the French court ruled against our procedural motions to challenge the constitutionality of the charges and quash the indictment. Hearings occurred on April 1-2, 2015, and the Company presented its defense and closing arguments. On June 18, 2015, the French court issued its ruling dismissing the case against the Company and the other defendants. However, on July 1, 2015, the French prosecutor lodged an appeal. We currently do not expect to incur additional case resolution costs of a material amount in this matter. However, if the French authorities ultimately take enforcement action against our French subsidiary regarding its investigation, we may be subject to monetary and non-monetary penalties, which we currently do not believe will have a material adverse financial impact on our company.

Other

We are currently involved as a potentially responsible party at five former public waste disposal sites in various stages of evaluation or remediation. The projected cost of remediation at these sites, as well as our alleged "fair share" allocation, will remain uncertain until all studies have been completed and the parties have either negotiated an amicable resolution or the matter has been judicially resolved. At each site, there are many other parties who have similarly been identified. Many of the other parties identified are financially strong and solvent companies that appear able to pay their share of the remediation costs. Based on our information about the waste disposal practices at these sites and the environmental regulatory process in general, we believe that it is likely that ultimate remediation liability costs for each site will be apportioned among all liable parties, including site owners and waste transporters, according to the volumes and/or toxicity of the wastes shown to have been disposed of at the sites. We believe that our financial exposure for existing disposal sites will not be materially in excess of accrued reserves.

As previously disclosed in our 2016 Annual Report, we terminated an employee of an overseas subsidiary after uncovering actions that violated our Code of Business Conduct and may have violated the Foreign Corrupt Practices Act.  We completed our internal investigation into the matter, self-reported the potential violation to the United States Department of Justice (the “DOJ”) and the SEC, and continue to cooperate with the DOJ and SEC.  We previously received a subpoena from the SEC requesting additional information and documentation related to the matter and have completed our response to the subpoena.  We currently believe that this matter will not have a material adverse financial impact on the Company, but there can be no assurance that the Company will not be subjected to monetary penalties and additional costs. 

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 reserves covering exposures relating to contingencies, to the extent believed to be reasonably estimable and probable based on past experience and available facts. While additional exposures beyond these reserves could exist, they currently cannot be estimated. We will continue to evaluate and update the reserves as necessary and appropriate.

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Retirement and Postretirement Benefits

3 Months Ended

Mar. 31, 2017

Compensation and Retirement Disclosure [Abstract]

Retirement and Postretirement Benefits

Retirement and Postretirement Benefits

Components of the net periodic cost for retirement and postretirement benefits for the three months ended March 31, 2017 and 2016 were as follows:

	U.S. Defined Benefit Plans						Non-U.S. Defined Benefit Plans						Postretirement Medical Benefits
(Amounts in millions)	2017			2016			2017			2016			2017		2016
Service cost	$	6.2		$	5.9		$	1.7		$	1.8		$	—	$	—
Interest cost	4.3			4.8			2.2			2.9			0.2		0.3
Expected return on plan assets	(6.2		)	(6.1		)	(2.1		)	(2.7		)	—		—
Amortization of prior service cost	—			0.1			—			—			—		—
Amortization of unrecognized net loss (gain)	1.5			1.2			0.9			1.3			0.1		(0.1		)
Net periodic cost recognized	$	5.8		$	5.9		$	2.7		$	3.3		$	0.3	$	0.2

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Shareholders' Equity

3 Months Ended

Mar. 31, 2017

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 dependent on its assessment of our financial situation and business outlook at the applicable time.

Share Repurchase Program – On November 13, 2014, our Board of Directors approved a $500.0 million share repurchase authorization. Our share repurchase program does not have an expiration date, and we reserve the right to limit or terminate the repurchase program at anytime without notice. We had no repurchases of shares of our outstanding common stock for the three months ended March 31, 2017 and 2016. As of March 31, 2017 we had $160.7 million of remaining capacity under our current share repurchase program.

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Income Taxes

3 Months Ended

Mar. 31, 2017

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

For the three months ended March 31, 2017, we earned $24.6 million before taxes and provided for income taxes of $5.3 million resulting in an effective tax rate of 21.6%. The effective tax rate varied from the U.S. federal statutory rate for the three months ended March 31, 2017 primarily due to the net impact of foreign operations.

For the three months ended March 31, 2016, we earned $51.5 million before taxes and provided for income taxes of $17.2 million resulting in an effective tax rate of 33.4%. The effective tax rate varied from the U.S. federal statutory rate for the three months ended March 31, 2016 primarily due to the net impact of foreign operations.

As of March 31, 2017, the amount of unrecognized tax benefits increased by $3.4 million from December 31, 2016. With limited exception, we are no longer subject to U.S. federal income tax audits for years through 2014, state and local income tax audits for years through 2010 or non-U.S. income tax audits for years through 2009. We are currently under examination for various years in Austria, Germany, India, Italy, Singapore, the U.S. and Venezuela.

It is reasonably possible that within the next 12 months the effective tax rate will be impacted by the resolution of some or all of the matters audited by various taxing authorities. It is also reasonably possible that we will have the statute of limitations close in various taxing jurisdictions within the next 12 months. As such, we estimate we could record a reduction in our tax expense of approximately $8 million within the next 12 months.

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Segment Information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment Information

Segment Information

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

Three Months Ended March 31, 2017
(Amounts in thousands)	Engineered Product Division		Industrial Product Division			Flow Control Division		Subtotal–Reportable Segments		Eliminations and All Other			Consolidated Total
Sales to external customers	$	417,070	$	170,002		$	279,246	$	866,318	$	—		$	866,318
Intersegment sales	7,592		8,378			1,191		17,161		(17,161		)	—
Segment operating income (loss)	45,583		(13,774		)	41,470		73,279		(23,470		)	49,809
Three Months Ended March 31, 2016
(Amounts in thousands)	Engineered Product Division		Industrial Product Division			Flow Control Division		Subtotal–Reportable Segments		Eliminations and All Other			Consolidated Total
Sales to external customers	$	463,199	$	186,704		$	296,318	$	946,221	$	—		$	946,221
Intersegment sales	9,613		10,746			2,668		23,027		(23,027		)	—
Segment operating income	55,808		3,695			38,374		97,877		(26,953		)	70,924

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Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2017

Equity [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

The following table presents the changes in accumulated other comprehensive loss ("AOCL"), net of tax for the three months ended March 31, 2017 and 2016:

	2017												2016
(Amounts in thousands)	Foreign currency translation items(1)			Pension and other post-retirement effects			Cash flow hedging activity			Total(1)			Foreign currency translation items(1)			Pension and other post-retirement effects			Cash flow hedging activity			Total(1)
Balance - January 1	$	(483,609	)	$	(136,530	)	$	(1,238	)	$	(621,377	)	$	(411,615	)	$	(120,461	)	$	(3,458	)	$	(535,534	)
Other comprehensive income (loss) before reclassifications	33,786			(1,152		)	80			32,714			32,499			1,060			529			34,088
Amounts reclassified from AOCL	—			1,636			23			1,659			—			1,726			114			1,840
Net current-period other comprehensive income	33,786			484			103			34,373			32,499			2,786			643			35,928
Balance - March 31	$	(449,823	)	$	(136,046	)	$	(1,135	)	$	(587,004	)	$	(379,116	)	$	(117,675	)	$	(2,815	)	$	(499,606	)

_______________________________________

(1) Includes foreign currency translation adjustments attributable to noncontrolling interests of $3.4 million and $2.7 million at January 1, 2017 and 2016, respectively, and $3.9 million and $3.5 million at March 31, 2017 and 2016, respectively. Includes net investment hedge losses of $0.8 million and $12.5 million, net of deferred taxes, for the three months ended March 31, 2017 and 2016, respectively. Amounts in parentheses indicate debits.

The following table presents the reclassifications out of AOCL:

		Three Months Ended March 31,
(Amounts in thousands)	Affected line item in the statement of income	2017(1)			2016
Cash flow hedging activity
Foreign exchange contracts
	Sales	$	(30	)	$	(154	)
	Tax benefit	7			40
	Net of tax	$	(23	)	$	(114	)
Pension and other postretirement effects
Amortization of actuarial losses(2)		$	(2,397	)	$	(2,313	)
Prior service costs(2)		(57		)	(152		)
	Tax benefit	818			739
	Net of tax	$	(1,636	)	$	(1,726	)

_______________________________________

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

(2) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 10 for additional details.

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Realignment Programs

3 Months Ended

Mar. 31, 2017

Restructuring and Related Activities [Abstract]

Realignment Programs

Realignment Programs

In the first quarter of 2015, we initiated a realignment program ("R1 Realignment Program") to reduce and optimize certain non-strategic QRCs and manufacturing facilities . In the second quarter of 2015, we initiated a second realignment program ("R2 Realignment Program") to better align costs and improve long-term efficiency, including further manufacturing optimization through the consolidation of facilities, a reduction in our workforce, the transfer of activities from high-cost regions to lower-cost facilities and the divestiture of certain non-strategic assets.

The R1 Realignment Program and the R2 Realignment Program (collectively the "Realignment Programs") consist of both restructuring and non-restructuring charges. Restructuring charges represent costs associated with the relocation or reorganization of certain business activities and facility closures and include related severance costs. Non-restructuring charges are primarily employee severance associated with workforce reductions to reduce redundancies. Expenses are primarily reported in COS or SG&A, as applicable, in our condensed consolidated statements of income. We anticipate a total investment in these programs of approximately $400 million, including projects still under final evaluation. We anticipate that the majority of any remaining charges will be incurred in 2017.

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

	Three Months Ended March 31, 2017
(Amounts in thousands)	Engineered Product Division			Industrial Product Division		Flow Control Division			Subtotal–Reportable Segments			Eliminations and All Other		Consolidated Total
Restructuring Charges
COS	$	(2,674	)	$	4,771	$	(32	)	$	2,065		$	—	$	2,065
SG&A	(781		)	89		124			(568		)	11		(557		)
	$	(3,455	)	$	4,860	$	92		$	1,497		$	11	$	1,508
Non-Restructuring Charges
COS	$	1,101		$	1,438	$	433		$	2,972		$	—	$	2,972
SG&A	714			3,606		547			4,867			1,164		6,031
	$	1,815		$	5,044	$	980		$	7,839		$	1,164	$	9,003
Total Realignment Charges
COS	$	(1,573	)	$	6,209	$	401		$	5,037		$	—	$	5,037
SG&A	(67		)	3,695		671			4,299			1,175		$	5,474
Total	$	(1,640	)	$	9,904	$	1,072		$	9,336		$	1,175	$	10,511

	Three Months Ended March 31, 2016
(Amounts in thousands)	Engineered Product Division			Industrial Product Division			Flow Control Division		Subtotal–Reportable Segments		Eliminations and All Other		Consolidated Total
Restructuring Charges
COS	$	1,520		$	(184	)	$	108	$	1,444	$	—	$	1,444
SG&A	2,407			1,712			159		4,278		—		4,278
	$	3,927		$	1,528		$	267	$	5,722	$	—	$	5,722
Non-Restructuring Charges
COS	$	99		$	1,793		$	3,860	$	5,752	$	15	$	5,767
SG&A	(221		)	608			1,464		1,851		131		1,982
	$	(122	)	$	2,401		$	5,324	$	7,603	$	146	$	7,749
Total Realignment Charges
COS	$	1,619		$	1,609		$	3,968	$	7,196	$	15	$	7,211
SG&A	2,186			2,320			1,623		6,129		131		$	6,260
Total	$	3,805		$	3,929		$	5,591	$	13,325	$	146	$	13,471

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

	Inception to Date
(Amounts in thousands)	Engineered Product Division		Industrial Product Division (1)		Flow Control Division		Subtotal–Reportable Segments		Eliminations and All Other		Consolidated Total
Restructuring Charges
COS	$	32,037	$	45,419	$	13,957	$	91,413	$	—	$	91,413
SG&A	17,036		15,686		9,676		42,398		29		42,427
Income tax expense(2)	9,400		9,300		1,800		20,500		—		20,500
	$	58,473	$	70,405	$	25,433	$	154,311	$	29	$	154,340
Non-Restructuring Charges
COS	$	17,261	$	15,621	$	12,366	$	45,248	$	8	$	45,256
SG&A	10,707		11,816		5,386		27,909		5,596		33,505
	$	27,968	$	27,437	$	17,752	$	73,157	$	5,604	$	78,761
Total Realignment Charges
COS	$	49,298	$	61,040	$	26,323	$	136,661	$	8	$	136,669
SG&A	27,743		27,502		15,062		70,307		5,625		75,932
Income tax expense(2)	9,400		9,300		1,800		20,500		—		20,500
Total	$	86,441	$	97,842	$	43,185	$	227,468	$	5,633	$	233,101

____________________________

(1) Includes $48.2 million of restructuring charges, primarily COS, related to the R1 Realignment Program.

(2) Income tax expense includes exit taxes as well as non-deductible costs.

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

The following is a summary of restructuring charges, net of adjustments, for the Realignment Programs:

	Three Months Ended March 31, 2017
(Amounts in thousands)	Severance			Contract Termination		Asset Write-Downs		Other		Total
COS	$	(3,757	)	$	137	$	4,953	$	732	$	2,065
SG&A	(1,319		)	—		352		410		(557		)
Total	$	(5,076	)	$	137	$	5,305	$	1,142	$	1,508

	Three Months Ended March 31, 2016
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs		Other		Total
COS	$	63	$	—	$	918	$	463	$	1,444
SG&A	3,754		—		36		488		4,278
Total	$	3,817	$	—	$	954	$	951	$	5,722

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

	Inception to Date
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs		Other		Total (1)
COS(1)	$	68,187	$	746	$	13,870	$	8,610	$	91,413
SG&A	29,448		43		1,780		11,156		42,427
Income tax expense(2)	—		—		—		20,500		20,500
Total	$	97,635	$	789	$	15,650	$	40,266	$	154,340

_______________________________

(1) Includes $48.2 million of restructuring charges, primarily COS, related to the R1 Realignment Program.

(2) Income tax expense includes exit taxes as well as non-deductible costs.

The following represents the activity, primarily severance, related to the restructuring reserve for the Realignment Programs for the three months ended March 31, 2017 and 2016:

	2017									2016
(Amounts in thousands)	R1 Realignment Program			R2 Realignment Program			Total			R1 Realignment Program			R2 Realignment Program			Total
Balance at December 31	$	12,594		$	47,733		$	60,327		$	25,156		$	33,147		$	58,303
Charges, net of adjustments	(3,431		)	(503		)	(3,934		)	976			3,792			4,768
Cash expenditures	(4,124		)	(7,070		)	(11,194		)	(1,294		)	(3,999		)	(5,293		)
Other non-cash adjustments, including currency	3,038			(1,712		)	1,326			(877		)	(1,162		)	(2,039		)
Balance at March 31	$	8,077		$	38,448		$	46,525		$	23,961		$	31,778		$	55,739

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Subsequent Events (Notes)

3 Months Ended

Mar. 31, 2017

Subsequent Events [Abstract]

Subsequent Events [Text Block]

Subsequent Event

On March 31, 2017, we signed a conditional sale and purchase agreement to sell our Flow Control Division's ("FCD") Gestra AG ("Gestra") business to a leading provider of steam system solutions for €186 million. The sale will include Gestra’s manufacturing facility in Germany as well as related operations in the U.S., the United Kingdom ("U.K."), Spain, Poland, Italy, Singapore and Portugal. In 2016, Gestra recorded revenues of approximately €92 million with earnings before interest and taxes of approximately €15 million. We believe the transaction will be completed in May 2017. Although the timing of the completed transaction and the balance sheet at the closing date will determine the exact amount, we currently estimate a gain on the sale in excess of €40 million.

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Basis of Presentation and Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2017

Accounting Policies [Abstract]

Accounting developments

Accounting Developments

Pronouncements Implemented

In July 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." The ASU updates represent changes to simplify the subsequent measurement of inventory. Previous to the issuance of this ASU, ASC 330 required that an entity measure inventory at the lower of cost or market. The amendments of ASU 2015-11 updates that “market” requirement to “net realizable value,” which is defined by the ASU as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Our adoption of ASU No. 2015-11 effective January 1, 2017 did not have an impact on our consolidated financial condition and results of operations.

In March 2016, the FASB issued ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting." The ASU affects the accounting for employee share-based payment transactions as it relates to accounting for income taxes, accounting for forfeitures, and statutory tax withholding requirements. We adopted the provisions of ASU 2016-09 as of January 1, 2017. The adoption resulted in the recognition of approximately $1 million of tax expense in our provision of income taxes and an approximately $3 million one-time, cumulative adjustment to beginning retained earnings related to the change in our accounting policy for estimated forfeitures and share cancellations. In addition, in our statements of cash flows we reclassified cash outflows for employee taxes paid from operating to financing and elected to reclassify cash impacts due to excess tax deficiencies and benefits from financing to operating, which resulted in a net reclassification of approximately $2 million of cash flows used from operating to financing for the three months ended March 31, 2016.

Pronouncements Not Yet Implemented

In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" which supersedes most of the revenue recognition requirements in "Revenue Recognition (Topic 605)." The standard is principle-based and provides a five-step model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Companies are permitted to adopt the new standard using one of two transition methods. Under the full retrospective method, the requirements of the new standard are applied to contracts for each prior reporting period presented and the cumulative effect of applying the standard is recognized in the earliest period presented. Under the modified retrospective method the requirements of the new standard are applied to contracts that are open as of January 1, 2018, the required date of adoption and the cumulative effect of applying the standard is recognized as an adjustment to beginning retained earnings in that same year. The standard also includes significantly expanded disclosure requirements for revenue. Since 2014, the FASB has issued several updates to Topic 606.

We are currently evaluating the impact of ASU No. 2014-09 and all related ASU's on our consolidated financial condition and results of operations. We plan to adopt the new revenue guidance effective January 1, 2018 using the modified retrospective method for transition. In 2015, we established a cross-functional implementation team consisting of representatives from across all of our reportable segments to begin the process of analyzing the impact of the standard on our contracts. The preliminary results of our evaluation, which is still in process, indicate that one of the changes upon adoption may be potentially increased “over-time” revenue recognition. Historically, revenue recognized under the percentage of completion method is less than 7% of our consolidated sales. We also anticipate changes to the consolidated balance sheet related to accounts receivable, contract assets and contract liabilities. Additionally, we are in the process of evaluating and designing the necessary changes to our business processes, systems and controls to support recognition and disclosure under the new standard. We are continuing our evaluation to determine the impact on our consolidated financial condition and results of operations.

In January 2016, the FASB issued ASU No. 2016-01, "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." The ASU requires entities to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value with changes in fair value recognized in net income. The ASU also requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. The requirement to disclose the method(s) and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost on the balance sheet has been eliminated by this ASU. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are currently evaluating the impact of ASU No. 2016-01 on our consolidated financial condition and results of operations.

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)”.  The ASU requires that organizations that lease assets recognize assets and liabilities on the balance sheet for the rights and obligations created by those leases.  The ASU will affect the presentation of lease related expenses on the income statement and statement of cash flows and will increase the required disclosures related to leases.  This ASU is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years with early adoption permitted.  We are currently evaluating the impact of ASU No. 2016-02 on our consolidated financial condition and results of operations.  Although we are continuing to evaluate, upon initial qualitative evaluation, we believe a key change upon adoption will be the balance sheet recognition of leased assets and liabilities. Based on our qualitative evaluation to date, we believe that any changes in income statement recognition will not be material.

In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments." The amendments in this ASU replace the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. We are currently evaluating the impact of ASU No. 2016-13 on our consolidated financial condition and results of operations.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments - A consensus of the FASB Emerging Issues Task Force.” The update was issued with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230 and other topics. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of ASU No. 2016-15 is not expected to have a material impact on our consolidated financial condition and results of operations.

In October 2016, the FASB issued ASU No. 2016-16, "Income Taxes (Topic 740) Intra-Entity Transfers of Assets Other Than Inventory." The ASU guidance requires the recognition of the income tax consequences of an intercompany asset transfer, other than transfers of inventory, when the transfer occurs. For intercompany transfers of inventory, the income tax effects will continue to be deferred until the inventory has been sold to a third party. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted. We are currently evaluating the impact of ASU No. 2016-16 on our consolidated financial condition and results of operations.

In November 2016, the FASB issued ASU No. 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash." The amendments in this ASU require that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The ASU is effective for reporting periods beginning after December 15, 2017, including interim periods with those fiscal years. The adoption of ASU No. 2016-18 is not expected to have a material impact on our consolidated financial condition and results of operations.

In January 2017, the FASB issued ASU No. 2017-01, "Business Combinations (Topic 805): "Clarifying the Definition of a Business." The ASU clarifies the definition of a business and provides guidance on evaluating as to whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition clarification as outlined in this ASU affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The amendments of the ASU are effective for annual periods beginning after December 15, 2017, including interim periods within those annual periods. The adoption of ASU No. 2017-01 is not expected to have a material impact on our consolidated financial condition and results of operations.

In January 2017, the FASB issued ASU No. 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The amendments in this ASU allow companies to apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit’s carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The amendments of the ASU are effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We are currently evaluating the impact of ASU No. 2017- 04 on our consolidated financial condition and results of operations.

In February 2017, the FASB issued ASU No. 2017-05, "Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets." The FASB issued this ASU to clarify the scope of subtopic 610-20, which the FASB had failed to define in its issuance of ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." ASU No. 2017-05 will be effective concurrently with ASU No. 2014-09. Similarly to ASU 2014-09, we are continuing our evaluation of ASU No. 2017-05 to determine the impact on our consolidated financial condition and results of operations.

On March 10, 2017, the FASB issued ASU No. 2017-07, "Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The amendments of this ASU provide additional guidance intended to improve the presentation of net benefit costs pension costs and net periodic postretirement costs. The amendments of the ASU must be applied to annual reporting periods beginning after December 15, 2017, and to quarterly periods in 2018, early adoption of the standard is permitted. We are currently evaluating the impact of ASU No. 2017- 07 on our consolidated financial condition and results of operations.

Fair Value

Fair Value

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied. Assets and liabilities recorded at fair value in our condensed consolidated balance sheets are categorized by hierarchical levels based upon the level of judgment associated with the inputs used to measure their fair values. Recurring fair value measurements are limited to investments in derivative instruments. The fair value measurements of our derivative instruments are determined using models that maximize the use of the observable market inputs including interest rate curves and both forward and spot prices for currencies, and are classified as Level II under the fair value hierarchy. The fair values of our derivatives are included in Note 4.

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Accounting Errors and Corrections (Tables)

3 Months Ended

Mar. 31, 2017

Accounting Changes and Error Corrections [Abstract]

Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]

The following table presents the effect of the prior period revisions on the affected line items of our condensed consolidated balance sheet as of March 31, 2017:

	March 31, 2017
(Amounts in thousands)	As Reported			Adjustments			As Revised
Accounts receivable, net (1)	$	844,597		$	(13,235	)	$	831,362
Inventories, net (2)	957,120			(17,120		)	940,000
Total current assets	2,282,133			(30,355		)	2,251,778
Deferred taxes (3)	84,590			(2,300		)	82,290
Total assets	4,696,831			(32,655		)	4,664,176
Accrued liabilities	654,025			(339		)	653,686
Total current liabilities	1,099,223			(339		)	1,098,884
Retirement obligations and other liabilities	418,196			(2,352		)	415,844
Retained earnings (4)	3,624,907			(29,539		)	3,595,368
Accumulated other comprehensive loss	(590,523		)	(425		)	(590,948		)
Total Flowserve Corporation shareholders’ equity	1,680,374			(29,964		)	1,650,410
Total equity	1,701,863			(29,964		)	1,671,899
Total liabilities and equity	$	4,696,831		$	(32,655	)	$	4,664,176

(1) The adjustments to accounts receivable, net are primarily related to receivables at one non-U.S. manufacturing site of $(10.5) million from our primary Venezuelan customer. These receivables should have been classified as long-term receivables and included in the charge that we recorded in the third quarter of 2016 to fully reserve all the potentially uncollectible receivables. This adjustment related to our EPD segment.

(2) The inventory adjustments primarily include corrections for errors at one non-U.S. manufacturing site related to inventory manufacturing cost variances of $(5.3) million, excess and obsolete reserve of $(3.0) million, inappropriate costs capitalized to projects in process of $(4.8) million and the write-off of non-recoverable work in process of $(3.8) million. The inventory manufacturing cost variances are capitalized to reflect inventory balances at actual cost, however, the non-U.S. site inappropriately overstated the costs subject to capitalization, primarily during 2016. The excess and obsolete reserve did not consider all inventory items resulting in an understatement of the reserve. The inappropriate costs were attributable to multiple projects over multiple periods for which no costs had been incurred or for which costs were incurred for warranty items that should have been expensed. The non-recoverable work in process related to projects which had previously shipped but the related costs were not appropriately removed from inventory. These adjustments were attributable to our IPD segment other than $(3.3) million of write-off of non-recoverable work in progress that were attributable to our EPD segment.

(3) The deferred tax asset adjustments primarily related to deferred tax assets of $(6.5) million that previously were determined to be more likely than not realizable, partially offset by the tax effect of other revision adjustments. However, as a result of the adjustments described above, it was determined the deferred tax assets would not be realized.

(4) The adjustment to retained earnings represents the cumulative effect of the errors that were corrected in current and prior periods.

The following table presents the effect of the prior period revisions on the affected line items of our condensed consolidated balance sheet as of December 31, 2016:

	December 31, 2016
(Amounts in thousands)	As Reported			Adjustments			As Revised
Accounts receivable, net (1)	894,749			(12,111		)	882,638
Inventories, net (2)	919,251			(21,561		)	897,690
Total current assets	2,331,361			(33,672		)	2,297,689
Property, plant and equipment, net	723,628			1,177			724,805
Deferred taxes (3)	87,178			(3,456		)	83,722
Other assets, net	181,014			2,112			183,126
Total assets	$	4,742,762		$	(33,839	)	$	4,708,923
Accrued liabilities	680,689			297			680,986
Total current liabilities	1,178,141			297			1,178,438
Retirement obligations and other liabilities	410,168			(2,329		)	407,839
Retained earnings (4)	3,632,163			(33,767		)	3,598,396
Accumulated other comprehensive loss	(626,748		)	1,960			(624,788		)
Total Flowserve Corporation shareholders’ equity	1,648,234			(31,807		)	1,616,427
Noncontrolling interests	20,961			—			20,961
Total equity	1,669,195			(31,807		)	1,637,388
Total liabilities and equity	$	4,742,762		$	(33,839	)	$	4,708,923

_______________________________________

(1) The adjustments to accounts receivable, net are primarily related to receivables at one non-U.S. manufacturing site of $(9.5) million from our primary Venezuelan customer. These receivables should have been classified as long-term receivables and included in the charge that we recorded in the third quarter of 2016 to fully reserve all the potentially uncollectible receivables. This adjustment related to our EPD segment.

(2) The inventory adjustments primarily include corrections for errors at one non-U.S. manufacturing site related to inventory manufacturing cost variances of $(5.9) million, excess and obsolete reserve of $(2.5) million, inappropriate costs capitalized to projects in process of $(8.3) million and the write-off of non-recoverable work in process of $(3.3) million. The inventory manufacturing cost variances are capitalized to reflect inventory balances at actual cost, however, the non-U.S. site inappropriately overstated the costs subject to capitalization, primarily during 2016. The excess and obsolete reserve did not consider all inventory items resulting in an understatement of the reserve. The inappropriate costs were attributable to multiple projects over multiple periods for which no costs had been incurred or for which costs were incurred for warranty items that should have been expensed. The non-recoverable work in process related to projects which had previously shipped but the related costs were not appropriately removed from inventory. These adjustments were attributable to our IPD segment other than $(3.6) million of the inappropriate capitalized cost and $(2.8) million of write-off of non-recoverable work in progress that were attributable to our EPD segment.

(3) The deferred tax asset adjustments primarily related to deferred tax assets of $(6.4) million that previously were determined to be more likely than not realizable, partially offset by the tax effect of other revision adjustments. However, as a result of the adjustments described above, it was determined the deferred tax assets would not be realized.

(4) The adjustment to retained earnings represents the cumulative effect of the errors that were corrected in current and prior periods.

The following table presents the effect of the prior period revisions on the affected line items of our condensed consolidated statement of income for the three months ended March 31, 2017:

(Amounts in thousands, except per share data)	Three Months Ended March 31, 2017
	As Reported			Adjustments			As Revised
Sales	$	863,626		$	2,692		$	866,318
Cost of sales	(599,746		)	1,866			(597,880		)
Gross profit	263,880			4,558			268,438
Selling, general and administrative expense	(222,029		)	(55		)	(222,084		)
Net earnings from affiliates	5,165			(1,710		)	3,455
Operating income	47,016			2,793			49,809
Earnings before income taxes	21,817			2,792			24,609
Provision for income taxes	(6,755		)	1,435			(5,320		)
Net earnings, including noncontrolling interests	15,062			4,227			19,289
Net earnings attributable to Flowserve Corporation	$	14,823		$	4,227		$	19,050
Net earnings per share attributable to Flowserve Corporation common shareholders:
Basic	$	0.11		$	0.04		$	0.15
Diluted	0.11			0.04			0.15

The following table presents the effect of the prior period revisions on the affected line items of our condensed consolidated statement of income for the three months ended March 31, 2016:

(Amounts in thousands, except per share data)	Three Months Ended March 31, 2016
	As Reported			Adjustments			As Revised
Sales	$	947,248		$	(1,027	)	$	946,221
Cost of sales	(639,247		)	(1,820		)	(641,067		)
Gross profit	308,001			(2,847		)	305,154
Selling, general and administrative expense	(236,910		)	(639		)	(237,549		)
Operating income	74,410			(3,486		)	70,924
Other expense, net	(4,543		)	(1,021		)	(5,564		)
Earnings before income taxes	55,975			(4,507		)	51,468
Provision for income taxes	(17,691		)	514			(17,177		)
Net earnings, including noncontrolling interests	38,284			(3,993		)	34,291
Net earnings attributable to Flowserve Corporation	$	37,859		$	(3,993	)	$	33,866
Net earnings per share attributable to Flowserve Corporation common shareholders:
Basic	$	0.29		$	(0.03	)	$	0.26
Diluted	0.29			(0.03		)	0.26

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Stock-Based Compensation Plans (Tables)

3 Months Ended

Mar. 31, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Information Regarding Restricted Shares

The following table summarizes information regarding Restricted Shares:

	Three Months Ended March 31, 2017
	Shares		Weighted Average Grant-Date Fair Value
Number of unvested shares:
Outstanding - January 1, 2017	1,259,275		$	50.77
Granted	523,235		50.49
Vested	(423,523	)	60.69
Canceled	(128,281	)	47.97
Outstanding as of March 31, 2017	1,230,706		$	47.53

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Derivative Instruments and Hedges (Tables)

3 Months Ended

Mar. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

The fair value of foreign exchange contracts not designated as hedging instruments are summarized below:

	March 31,		December 31,
(Amounts in thousands)	2017		2016
Current derivative assets	$	2,909	$	682
Current derivative liabilities	3,210		6,878
Noncurrent derivative liabilities	114		355

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:

	Three Months Ended March 31,
(Amounts in thousands)	2017		2016
Gain recognized in income	$	1,897	$	2,061

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Debt (Tables)

3 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

Debt Including Capital Lease Obligations

Debt, including capital lease obligations, consisted of:

	March 31,		December 31,
(Amounts in thousands, except percentages)	2017		2016
1.25% EUR Senior Notes due March 17, 2022, net of unamortized discount and debt issuance costs of $5,556 and $5,748	$	526,894	$	519,902
4.00% USD Senior Notes due November 15, 2023, net of unamortized discount and debt issuance costs of $2,878 and $2,972	297,122		297,028
3.50% USD Senior Notes due September 15, 2022, net of unamortized discount and debt issuance costs of $3,696 and $3,848	496,304		496,152
Term Loan Facility, interest rate of 2.40% at March 31, 2017 and 2.25% at December 31, 2016, net of debt issuance costs of $653 and $745	209,347		224,255
Capital lease obligations and other borrowings	38,514		33,286
Debt and capital lease obligations	1,568,181		1,570,623
Less amounts due within one year	90,632		85,365
Total debt due after one year	$	1,477,549	$	1,485,258

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Inventories (Tables)

3 Months Ended

Mar. 31, 2017

Inventory Disclosure [Abstract]

Net Components of Inventory

Inventories, net consisted of the following:

	March 31,			December 31,
(Amounts in thousands)	2017			2016
Raw materials	$	361,685		$	348,012
Work in process	652,383			629,766
Finished goods	215,383			206,086
Less: Progress billings	(214,507		)	(216,783		)
Less: Excess and obsolete reserve	(74,944		)	(69,391		)
Inventories, net	$	940,000		$	897,690

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Earnings Per Share (Tables)

3 Months Ended

Mar. 31, 2017

Earnings Per Share [Abstract]

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

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

	Three Months Ended March 31,
(Amounts in thousands, except per share data)	2017		2016
Net earnings of Flowserve Corporation	$	19,050	$	33,866
Dividends on restricted shares not expected to vest	—		2
Earnings attributable to common and participating shareholders	$	19,050	$	33,868
Weighted average shares:
Common stock	130,393		129,781
Participating securities	169		361
Denominator for basic earnings per common share	130,562		130,142
Effect of potentially dilutive securities	713		670
Denominator for diluted earnings per common share	131,275		130,812
Earnings per common share:
Basic	$	0.15	$	0.26
Diluted	0.15		0.26

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Retirement and Postretirement Benefits (Tables)

3 Months Ended

Mar. 31, 2017

Compensation and Retirement Disclosure [Abstract]

Components of Net Periodic Cost for Pension and Postretirement Benefits

Components of the net periodic cost for retirement and postretirement benefits for the three months ended March 31, 2017 and 2016 were as follows:

	U.S. Defined Benefit Plans						Non-U.S. Defined Benefit Plans						Postretirement Medical Benefits
(Amounts in millions)	2017			2016			2017			2016			2017		2016
Service cost	$	6.2		$	5.9		$	1.7		$	1.8		$	—	$	—
Interest cost	4.3			4.8			2.2			2.9			0.2		0.3
Expected return on plan assets	(6.2		)	(6.1		)	(2.1		)	(2.7		)	—		—
Amortization of prior service cost	—			0.1			—			—			—		—
Amortization of unrecognized net loss (gain)	1.5			1.2			0.9			1.3			0.1		(0.1		)
Net periodic cost recognized	$	5.8		$	5.9		$	2.7		$	3.3		$	0.3	$	0.2

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Segment Information (Tables)

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Summarized Financial Information of Reportable Segments

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

Three Months Ended March 31, 2017
(Amounts in thousands)	Engineered Product Division		Industrial Product Division			Flow Control Division		Subtotal–Reportable Segments		Eliminations and All Other			Consolidated Total
Sales to external customers	$	417,070	$	170,002		$	279,246	$	866,318	$	—		$	866,318
Intersegment sales	7,592		8,378			1,191		17,161		(17,161		)	—
Segment operating income (loss)	45,583		(13,774		)	41,470		73,279		(23,470		)	49,809
Three Months Ended March 31, 2016
(Amounts in thousands)	Engineered Product Division		Industrial Product Division			Flow Control Division		Subtotal–Reportable Segments		Eliminations and All Other			Consolidated Total
Sales to external customers	$	463,199	$	186,704		$	296,318	$	946,221	$	—		$	946,221
Intersegment sales	9,613		10,746			2,668		23,027		(23,027		)	—
Segment operating income	55,808		3,695			38,374		97,877		(26,953		)	70,924

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Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Mar. 31, 2017

Equity [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following table presents the changes in accumulated other comprehensive loss ("AOCL"), net of tax for the three months ended March 31, 2017 and 2016:

	2017												2016
(Amounts in thousands)	Foreign currency translation items(1)			Pension and other post-retirement effects			Cash flow hedging activity			Total(1)			Foreign currency translation items(1)			Pension and other post-retirement effects			Cash flow hedging activity			Total(1)
Balance - January 1	$	(483,609	)	$	(136,530	)	$	(1,238	)	$	(621,377	)	$	(411,615	)	$	(120,461	)	$	(3,458	)	$	(535,534	)
Other comprehensive income (loss) before reclassifications	33,786			(1,152		)	80			32,714			32,499			1,060			529			34,088
Amounts reclassified from AOCL	—			1,636			23			1,659			—			1,726			114			1,840
Net current-period other comprehensive income	33,786			484			103			34,373			32,499			2,786			643			35,928
Balance - March 31	$	(449,823	)	$	(136,046	)	$	(1,135	)	$	(587,004	)	$	(379,116	)	$	(117,675	)	$	(2,815	)	$	(499,606	)

_______________________________________

(1) Includes foreign currency translation adjustments attributable to noncontrolling interests of $3.4 million and $2.7 million at January 1, 2017 and 2016, respectively, and $3.9 million and $3.5 million at March 31, 2017 and 2016, respectively. Includes net investment hedge losses of $0.8 million and $12.5 million, net of deferred taxes, for the three months ended March 31, 2017 and 2016, respectively. Amounts in parentheses indicate debits.

Reclassifications out of Accumulated Other Comprehensive Income (Loss)

The following table presents the reclassifications out of AOCL:

		Three Months Ended March 31,
(Amounts in thousands)	Affected line item in the statement of income	2017(1)			2016
Cash flow hedging activity
Foreign exchange contracts
	Sales	$	(30	)	$	(154	)
	Tax benefit	7			40
	Net of tax	$	(23	)	$	(114	)
Pension and other postretirement effects
Amortization of actuarial losses(2)		$	(2,397	)	$	(2,313	)
Prior service costs(2)		(57		)	(152		)
	Tax benefit	818			739
	Net of tax	$	(1,636	)	$	(1,726	)

_______________________________________

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

(2) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost. See Note 10 for additional details.

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Realignment Programs (Tables)

3 Months Ended

Mar. 31, 2017

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs [Table Text Block]

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

	Three Months Ended March 31, 2017
(Amounts in thousands)	Engineered Product Division			Industrial Product Division		Flow Control Division			Subtotal–Reportable Segments			Eliminations and All Other		Consolidated Total
Restructuring Charges
COS	$	(2,674	)	$	4,771	$	(32	)	$	2,065		$	—	$	2,065
SG&A	(781		)	89		124			(568		)	11		(557		)
	$	(3,455	)	$	4,860	$	92		$	1,497		$	11	$	1,508
Non-Restructuring Charges
COS	$	1,101		$	1,438	$	433		$	2,972		$	—	$	2,972
SG&A	714			3,606		547			4,867			1,164		6,031
	$	1,815		$	5,044	$	980		$	7,839		$	1,164	$	9,003
Total Realignment Charges
COS	$	(1,573	)	$	6,209	$	401		$	5,037		$	—	$	5,037
SG&A	(67		)	3,695		671			4,299			1,175		$	5,474
Total	$	(1,640	)	$	9,904	$	1,072		$	9,336		$	1,175	$	10,511

	Three Months Ended March 31, 2016
(Amounts in thousands)	Engineered Product Division			Industrial Product Division			Flow Control Division		Subtotal–Reportable Segments		Eliminations and All Other		Consolidated Total
Restructuring Charges
COS	$	1,520		$	(184	)	$	108	$	1,444	$	—	$	1,444
SG&A	2,407			1,712			159		4,278		—		4,278
	$	3,927		$	1,528		$	267	$	5,722	$	—	$	5,722
Non-Restructuring Charges
COS	$	99		$	1,793		$	3,860	$	5,752	$	15	$	5,767
SG&A	(221		)	608			1,464		1,851		131		1,982
	$	(122	)	$	2,401		$	5,324	$	7,603	$	146	$	7,749
Total Realignment Charges
COS	$	1,619		$	1,609		$	3,968	$	7,196	$	15	$	7,211
SG&A	2,186			2,320			1,623		6,129		131		$	6,260
Total	$	3,805		$	3,929		$	5,591	$	13,325	$	146	$	13,471

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

	Inception to Date
(Amounts in thousands)	Engineered Product Division		Industrial Product Division (1)		Flow Control Division		Subtotal–Reportable Segments		Eliminations and All Other		Consolidated Total
Restructuring Charges
COS	$	32,037	$	45,419	$	13,957	$	91,413	$	—	$	91,413
SG&A	17,036		15,686		9,676		42,398		29		42,427
Income tax expense(2)	9,400		9,300		1,800		20,500		—		20,500
	$	58,473	$	70,405	$	25,433	$	154,311	$	29	$	154,340
Non-Restructuring Charges
COS	$	17,261	$	15,621	$	12,366	$	45,248	$	8	$	45,256
SG&A	10,707		11,816		5,386		27,909		5,596		33,505
	$	27,968	$	27,437	$	17,752	$	73,157	$	5,604	$	78,761
Total Realignment Charges
COS	$	49,298	$	61,040	$	26,323	$	136,661	$	8	$	136,669
SG&A	27,743		27,502		15,062		70,307		5,625		75,932
Income tax expense(2)	9,400		9,300		1,800		20,500		—		20,500
Total	$	86,441	$	97,842	$	43,185	$	227,468	$	5,633	$	233,101

____________________________

(1) Includes $48.2 million of restructuring charges, primarily COS, related to the R1 Realignment Program.

(2) Income tax expense includes exit taxes as well as non-deductible costs.

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

The following is a summary of restructuring charges, net of adjustments, for the Realignment Programs:

	Three Months Ended March 31, 2017
(Amounts in thousands)	Severance			Contract Termination		Asset Write-Downs		Other		Total
COS	$	(3,757	)	$	137	$	4,953	$	732	$	2,065
SG&A	(1,319		)	—		352		410		(557		)
Total	$	(5,076	)	$	137	$	5,305	$	1,142	$	1,508

	Three Months Ended March 31, 2016
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs		Other		Total
COS	$	63	$	—	$	918	$	463	$	1,444
SG&A	3,754		—		36		488		4,278
Total	$	3,817	$	—	$	954	$	951	$	5,722

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

	Inception to Date
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs		Other		Total (1)
COS(1)	$	68,187	$	746	$	13,870	$	8,610	$	91,413
SG&A	29,448		43		1,780		11,156		42,427
Income tax expense(2)	—		—		—		20,500		20,500
Total	$	97,635	$	789	$	15,650	$	40,266	$	154,340

_______________________________

(1) Includes $48.2 million of restructuring charges, primarily COS, related to the R1 Realignment Program.

(2) Income tax expense includes exit taxes as well as non-deductible costs.

Schedule of Restructuring Reserve by Type of Cost [Table Text Block]

The following represents the activity, primarily severance, related to the restructuring reserve for the Realignment Programs for the three months ended March 31, 2017 and 2016:

	2017									2016
(Amounts in thousands)	R1 Realignment Program			R2 Realignment Program			Total			R1 Realignment Program			R2 Realignment Program			Total
Balance at December 31	$	12,594		$	47,733		$	60,327		$	25,156		$	33,147		$	58,303
Charges, net of adjustments	(3,431		)	(503		)	(3,934		)	976			3,792			4,768
Cash expenditures	(4,124		)	(7,070		)	(11,194		)	(1,294		)	(3,999		)	(5,293		)
Other non-cash adjustments, including currency	3,038			(1,712		)	1,326			(877		)	(1,162		)	(2,039		)
Balance at March 31	$	8,077		$	38,448		$	46,525		$	23,961		$	31,778		$	55,739

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Basis of Presentation and Accounting Policies (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2017 USD ($) VEF / $	Sep. 30, 2016 USD ($)	Mar. 31, 2016 USD ($)
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Excess Tax Benefit from Share-based Compensation, Financing Activities	$ (3,198)		$ (2,356)
Venezuela
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Segment sales percentage of consolidated sales (less than 0.5%)	0.50%
Segment Assets Percentage Of Consolidated Assets (less than 0.5%)	0.50%
Foreign currency exchange rate, translation | VEF / $	10.0
Percentage of outstanding accounts receivable	7.00%
SICAD I Exchange rate | Venezuela
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Foreign currency exchange rate, translation | VEF / $	709.7
Adjustments for New Accounting Pronouncement [Member] | Other Assets
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Cumulative Effect on Retained Earnings, Tax	$ (3,000)
Selling, General and Administrative Expenses | Venezuela
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Probable Accounts Receivables		$ 73,500
Cost of Sales | Venezuela
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Probable Accounts Receivables		$ 1,900
Income Tax Expense [Member] | Adjustments for New Accounting Pronouncement [Member]
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Allocated Share-based Compensation Expense	$ 1,000
Financing Activities [Member] | Adjustments for New Accounting Pronouncement [Member]
Financial Statement Line Items with Differences in Reported Amount and Reporting Currency Denominated Amounts [Line Items]
Excess Tax Benefit from Share-based Compensation, Financing Activities			$ 2,000

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Accounting Errors and Corrections (Details) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2017 USD ($) site $ / shares	Mar. 31, 2016 USD ($) $ / shares	Dec. 31, 2016 USD ($) site	Dec. 31, 2015 USD ($)
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Number of non-U.S. sites focused for accounting errors | site	2
non-U.S. site	1		1
Revenue, Net	$ 866,318	$ 946,221
Cost of Goods and Services Sold	(597,880)	(641,067)
Gross Profit	268,438	305,154
Selling, General and Administrative Expense	(222,084)	(237,549)
Income (Loss) from Equity Method Investments	3,455	3,319
Operating income (loss)	49,809	70,924
Interest Expense	14,696	14,568
Interest Income, Deposits with Financial Institutions	624	676
Other Nonoperating Income (Expense)	(11,128)	(5,564)
Earnings before income taxes	24,609	51,468
Provision for income taxes	(5,320)	(17,177)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	19,289	34,291
Net Income (Loss) Attributable to Noncontrolling Interest	239	425
Net Income (Loss) Attributable to Parent	$ 19,050	$ 33,866
Basic (in dollars per share) | $ / shares	$ 0.15	$ 0.26
Diluted (in dollars per share) | $ / shares	$ 0.15	$ 0.26
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	$ 33,786	$ 32,499
Cash and Cash Equivalents, at Carrying Value	325,783	307,378	$ 367,162	$ 366,444
Accounts Receivable, Net, Current	$ 831,362		$ 882,638
Number of non-US sites related to inventory adjustments	1		1
Inventory, Net	$ 940,000		$ 897,690
Prepaid Expense and Other Assets, Current	154,633		150,199
Assets, Current	2,251,778		2,297,689
Property, Plant and Equipment, Net	715,563		724,805
Goodwill	1,211,153		1,205,054
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent	82,290		83,722
Cash and Cash Equivalents, Period Increase (Decrease)	(41,379)	(59,066)
Increase (Decrease) in Accounts Receivable	(67,466)	(91,399)
Increase (Decrease) in Deferred Income Taxes	(6,038)	10,497
Intangible Assets, Net (Excluding Goodwill)	216,724		214,527
Other Assets, Noncurrent	186,668		183,126
Assets	4,664,176		4,708,923
Accounts Payable, Current	354,566		412,087
Accrued Liabilities, Current	653,686		680,986
Debt due within one year	90,632		85,365
Liabilities, Current	1,098,884		1,178,438
Long-term debt due after one year	1,477,549		1,485,258
Retirement obligations and other liabilities	415,844		407,839
Common Stock, Value, Issued	220,991		220,991
Additional Paid in Capital, Common Stock	481,443		491,848
Retained Earnings (Accumulated Deficit)	3,595,368		3,598,396
Treasury Stock, Value	(2,063,085)		(2,078,527)
Deferred compensation obligation	6,641		8,507
Accumulated Other Comprehensive Income (Loss), Net of Tax	(590,948)		(624,788)
Stockholders' Equity Attributable to Parent	1,650,410		1,616,427
Stockholders' Equity Attributable to Noncontrolling Interest	21,489		20,961
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	1,671,899		1,637,388
Liabilities and Equity	4,664,176		4,708,923
Scenario, Previously Reported [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue, Net	863,626	947,248
Cost of Goods and Services Sold	(599,746)	(639,247)
Gross Profit	263,880	308,001
Selling, General and Administrative Expense	(222,029)	(236,910)
Income (Loss) from Equity Method Investments	5,165
Operating income (loss)	47,016	74,410
Other Nonoperating Income (Expense)		(4,543)
Earnings before income taxes	21,817	55,975
Provision for income taxes	(6,755)	(17,691)
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	15,062	38,284
Net Income (Loss) Attributable to Parent	$ 14,823	$ 37,859
Basic (in dollars per share) | $ / shares	$ 0	$ 0
Diluted (in dollars per share) | $ / shares	$ 0	$ 0
Accounts Receivable, Net, Current	$ 844,597		894,749
Inventory, Net	957,120		919,251
Assets, Current	2,282,133		2,331,361
Property, Plant and Equipment, Net			723,628
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent	84,590		87,178
Other Assets, Noncurrent			181,014
Assets	4,696,831		4,742,762
Accrued Liabilities, Current	654,025		680,689
Liabilities, Current	1,099,223		1,178,141
Retirement obligations and other liabilities	418,196		410,168
Retained Earnings (Accumulated Deficit)	3,624,907		3,632,163
Accumulated Other Comprehensive Income (Loss), Net of Tax	(590,523)		(626,748)
Stockholders' Equity Attributable to Parent	1,680,374		1,648,234
Restatement Adjustment [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue, Net	2,692	$ (1,027)
Cost of Goods and Services Sold	1,866	(1,820)
Gross Profit	4,558	(2,847)
Selling, General and Administrative Expense	(55)	(639)
Income (Loss) from Equity Method Investments	(1,710)
Operating income (loss)	2,793	(3,486)
Other Nonoperating Income (Expense)		(1,021)
Earnings before income taxes	2,792	(4,507)
Provision for income taxes	1,435	514
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	4,227	(3,993)
Net Income (Loss) Attributable to Parent	$ 4,227	$ (3,993)
Basic (in dollars per share) | $ / shares	$ 0	$ 0
Diluted (in dollars per share) | $ / shares	$ 0	$ 0
Accounts Receivable, Net, Current	$ (13,235)		(12,111)
Inventory, Net	(17,120)		(21,561)
Non-realizable Deferred Tax Adjustment	(6,500)		(6,400)
Assets, Current	(30,355)		(33,672)
Property, Plant and Equipment, Net			1,177
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent	(2,300)		(3,456)
Other Assets, Noncurrent			2,112
Assets	(32,655)		(33,839)
Accrued Liabilities, Current	(339)		297
Liabilities, Current	(339)		297
Retirement obligations and other liabilities	(2,352)		(2,329)
Retained Earnings (Accumulated Deficit)	(29,539)		(33,767)
Accumulated Other Comprehensive Income (Loss), Net of Tax	(425)		1,960
Stockholders' Equity Attributable to Parent	(29,964)		(31,807)
Engineered Product Division [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue, Net	417,070	$ 463,199
Operating income (loss)	45,583	55,808
Engineered Product Division [Member] | Venezuela | Restatement Adjustment [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Accounts Receivable, Net, Current	(10,500)		(9,500)
Engineered Product Division [Member] | non-recoverable work [Domain] | Restatement Adjustment [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Inventory, Net	(3,300)		(2,800)
Engineered Product Division [Member] | capitalized contract cost [Domain] | Restatement Adjustment [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Inventory, Net			(3,600)
Industrial Product Division [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Revenue, Net	170,002	186,704
Operating income (loss)	(13,774)	3,695
Industrial Product Division [Member] | non-recoverable work [Domain] | Restatement Adjustment [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Inventory, Net	(3,800)		(3,300)
Industrial Product Division [Member] | capitalized contract cost [Domain] | Restatement Adjustment [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Inventory, Net	(4,800)		(8,300)
Industrial Product Division [Member] | Inventory Valuation and Obsolescence [Member] | Restatement Adjustment [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Inventory, Net	(3,000)		(2,500)
Industrial Product Division [Member] | manufacturing cost vaiance [Member] | Restatement Adjustment [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Inventory, Net	$ (5,300)		$ (5,900)
increase (decrease) in assets and liabilities [Domain] | Restatement Adjustment [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest		3,000
Inventories [Member] | Restatement Adjustment [Member]
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest		$ (4,441)

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Stock-Based Compensation Plans (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted during period	0
Plan 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized to issue under share based compensation plans	8,700,000
Common stock available under stock option plan	2,832,115
Share-based Compensation Arrangement Age Requirement to Vest Over Original Vesting Period	55 years
Share-based Compensation Arrangement Time in Service Requirement to Vest Over Original Vesting Period	10 years
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 25.0		$ 15.2
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	2 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value	$ 25.7	$ 36.4
Allocated Share-based Compensation Expense, Net of Tax	7.5	10.5
Allocated Share-based Compensation Expense	$ 11.3	$ 16.0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	1,230,706		1,259,275
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number	872,000
Share-based Compensation Arrangement by Share-based Payment Award, Award Requisite Service Period (in years)	3 years
Vesting period (in months)	36 months
Estimated vesting of shares based on performance shares	1,670,000
Minimum | Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	0.00%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number	0
Maximum | Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage	200.00%
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Number	636,000

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Stock-Based Compensation Plans (Information Regarding Restricted Shares) (Details) - Restricted Stock	3 Months Ended
	Mar. 31, 2017 $ / shares shares
Shares
Outstanding, Shares, Beginning balance | shares	1,259,275
Granted, Shares | shares	523,235
Vested, Shares | shares	(423,523)
Canceled, Shares | shares	(128,281)
Outstanding, Shares, Ending balance | shares	1,230,706
Weighted Average Grant-Date Fair Value
Outstanding, Weighted Average Grant-Date Fair Value, Beginning balance | $ / shares	$ 50.77
Granted, Weighted Average Grant-Date Fair Value | $ / shares	50.49
Vested, Weighted Average Grant-Date Fair Value | $ / shares	60.69
Cancelled, Weighted Average Grant-Date Fair Value | $ / shares	47.97
Outstanding, Weighted Average Grant-Date Fair Value, Ending balance | $ / shares	$ 47.53

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Derivative Instruments and Hedges (Details Textual) € in Millions	3 Months Ended
	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Mar. 17, 2015 EUR (€)
Forward Exchange Contract
Derivative [Line Items]
Minimum Remaining Maturity of Foreign Currency Derivatives	3 days
Lower maturity range (days)	20 months
Designated as Hedging Instrument | Forward Exchange Contract
Derivative [Line Items]
Derivative, notional amount | $	$ 0	$ 600,000
Not Designated as Hedging Instrument | Forward Exchange Contract
Derivative [Line Items]
Derivative, notional amount | $	$ 387,000,000	$ 393,200,000
2022 EUR Senior Notes
Derivative [Line Items]
Designated Amount, Net Investment Hedge | €			€ 255.7
Debt Instrument, Face Amount | €			€ 500.0

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Derivative Instruments and Hedges (Fair Value Balance Sheet Disclosures) (Details) - Not Designated as Hedging Instrument - Foreign Exchange Contract - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Derivative [Line Items]
Current derivative assets	$ 2,909	$ 682
Current derivative liabilities	3,210	6,878
Noncurrent derivative liabilities	$ 114	$ 355

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Derivative Instruments and Hedges (Fair Value of Forward Exchange Contracts) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Forward Contracts
Derivative [Line Items]
Gain recognized in income	$ 1,897	$ 2,061

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Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Capital lease obligations and other borrowings	$ 38,514	$ 33,286
Debt and capital lease obligations	1,568,181	1,570,623
Less amounts due within one year	90,632	85,365
Total debt due after one year	$ 1,477,549	$ 1,485,258
2022 EUR Senior Notes
Debt Instrument [Line Items]
Stated interest rate (as a percent)	1.25%	1.25%
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net	$ 5,556	$ 5,748
Long-term Debt	$ 526,894	$ 519,902
2023 Senior notes
Debt Instrument [Line Items]
Stated interest rate (as a percent)	4.00%	4.00%
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net	$ 2,878	$ 2,972
Long-term Debt	$ 297,122	$ 297,028
2022 Senior notes
Debt Instrument [Line Items]
Stated interest rate (as a percent)	3.50%	3.50%
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net	$ 3,696	$ 3,848
Long-term Debt	$ 496,304	$ 496,152
Term Loan Facility
Debt Instrument [Line Items]
Effective interest rate (as a percent)	2.40%	2.25%
Debt Issuance Costs, Net	$ 653	$ 745
Term Loan Facility	$ 209,347	$ 224,255

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Debt (Details Textual) - USD ($)		3 Months Ended
	Oct. 14, 2015	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Oct. 04, 2013
Line of Credit Facility [Line Items]
Payments on long-term debt		$ 15,000,000	$ 15,000,000
Term Loan Facility
Line of Credit Facility [Line Items]
Debt Instrument, Face Amount					$ 400,000,000
Payments on long-term debt		15,000,000
Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity					$ 1,000,000,000
Revolving Credit Facility		0		$ 0
Line of Credit Facility, Current Borrowing Capacity		419,800,000		553,500,000
Senior Credit Facility
Line of Credit Facility [Line Items]
Debt Instrument, Maturity Date	Oct. 14, 2020
Letters of credit outstanding		$ 89,600,000		$ 102,600,000
Line of credit, commitment fee (as a percentage)		0.15%
Credit Facilities Scheduled Repayments Due in Next Four Quarters		$ 15,000,000

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Fair Value (Details) $ in Millions	Mar. 31, 2017 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior notes	$ 1,320.3
Estimate of Fair Value Measurement
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Senior notes	$ 1,348.5

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Inventories (Details) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Net Components of Inventory
Raw materials	$ 361,685	$ 348,012
Work in process	652,383	629,766
Finished goods	215,383	206,086
Less: Progress billings	(214,507)	(216,783)
Less: Excess and obsolete reserve	(74,944)	(69,391)
Inventories, net	$ 940,000	$ 897,690

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Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Net earnings of Flowserve Corporation	$ 19,050	$ 33,866
Dividends on restricted shares not expected to vest	0	2
Earnings attributable to common and participating shareholders	$ 19,050	$ 33,868
Weighted average shares:
Common stock	130,393	129,781
Participating securities	169	361
Denominator for basic earnings per common share	130,562	130,142
Effect of potentially dilutive securities	713	670
Denominator for diluted earnings per common share	131,275	130,812
Earnings per common share:
Basic (in dollars per share)	$ 0.15	$ 0.26
Diluted (in dollars per share)	$ 0.15	$ 0.26

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Legal Matters and Contingencies (Details)	Mar. 31, 2017 site company
Legal Matters and Contingencies
Number of former public waste disposal sites | site	5
Oil-for-Food Program
Legal Matters and Contingencies
Number of French companies for investigation (over 170)	170
Number of our French companies for investigation	1

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Retirement and Postretirement Benefits (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
U.S. Defined Benefit Plans
Components of the net periodic cost for retirement and postretirement benefits
Service cost	$ 6.2	$ 5.9
Interest cost	4.3	4.8
Expected return on plan assets	(6.2)	(6.1)
Amortization of prior service cost	0.0	0.1
Amortization of unrecognized net loss (gain)	1.5	1.2
Net periodic cost recognized	5.8	5.9
Non-U.S. Defined Benefit Plans
Components of the net periodic cost for retirement and postretirement benefits
Service cost	1.7	1.8
Interest cost	2.2	2.9
Expected return on plan assets	(2.1)	(2.7)
Amortization of prior service cost	0.0	0.0
Amortization of unrecognized net loss (gain)	0.9	1.3
Net periodic cost recognized	2.7	3.3
Postretirement Medical Benefits
Components of the net periodic cost for retirement and postretirement benefits
Service cost	0.0	0.0
Interest cost	0.2	0.3
Expected return on plan assets	0.0	0.0
Amortization of prior service cost	0.0	0.0
Amortization of unrecognized net loss (gain)	0.1	(0.1)
Net periodic cost recognized	$ 0.3	$ 0.2

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Shareholders' Equity (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Nov. 13, 2014
Equity, Class of Treasury Stock [Line Items]
Repurchase of shares (in shares)	0	0
Remaining authorized repurchase capacity	$ 160,700,000
Share repurchase program 2014
Equity, Class of Treasury Stock [Line Items]
Authorized amount to be repurchased			$ 500,000,000.0

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Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income before income tax	$ 24,609	$ 51,468
Provision for income taxes	$ 5,320	$ 17,177
Effective tax rate (as a percent)	(21.60%)	33.40%
Unrecognized Tax Benefits, Period Increase (Decrease)	$ 3,400
Unrecognized tax benefits approximate amount of estimated reduction within the next twelve months	$ 8,000

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Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Summarized financial information of the reportable segments
Sales	$ 866,318	$ 946,221
Segment operating income (loss)	49,809	70,924
Intersegment sales
Summarized financial information of the reportable segments
Sales	0	0
Engineered Product Division
Summarized financial information of the reportable segments
Sales	417,070	463,199
Segment operating income (loss)	45,583	55,808
Engineered Product Division | Intersegment sales
Summarized financial information of the reportable segments
Sales	7,592	9,613
Industrial Product Division
Summarized financial information of the reportable segments
Sales	170,002	186,704
Segment operating income (loss)	(13,774)	3,695
Industrial Product Division | Intersegment sales
Summarized financial information of the reportable segments
Sales	8,378	10,746
Flow Control Division
Summarized financial information of the reportable segments
Sales	279,246	296,318
Segment operating income (loss)	41,470	38,374
Flow Control Division | Intersegment sales
Summarized financial information of the reportable segments
Sales	1,191	2,668
Subtotal–Reportable Segments
Summarized financial information of the reportable segments
Sales	866,318	946,221
Segment operating income (loss)	73,279	97,877
Subtotal–Reportable Segments | Intersegment sales
Summarized financial information of the reportable segments
Sales	17,161	23,027
Eliminations and All Other
Summarized financial information of the reportable segments
Sales	0	0
Segment operating income (loss)	(23,470)	(26,953)
Eliminations and All Other | Intersegment sales
Summarized financial information of the reportable segments
Sales	$ (17,161)	$ (23,027)

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Accumulated Other Comprehensive Loss (Components of AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016	Dec. 31, 2015
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	$ (621,377)	$ (535,534)
Other comprehensive income (loss) before reclassifications	32,714	34,088
Amounts reclassified from AOCL	1,659	1,840
Other comprehensive income	34,373	35,928
Ending balance	(587,004)	(499,606)
Accumulated Other Comprehensive Gain (Loss), accumulated Net Gain (Loss) from Net investment hedge	(800)	(12,500)
Foreign currency translation items
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(483,609)	(411,615)
Other comprehensive income (loss) before reclassifications	33,786	32,499
Amounts reclassified from AOCL	0	0
Other comprehensive income	33,786	32,499
Ending balance	(449,823)	(379,116)
Pension and other post-retirement effects
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(136,530)	(120,461)
Other comprehensive income (loss) before reclassifications	(1,152)	1,060
Amounts reclassified from AOCL	1,636	1,726
Other comprehensive income	484	2,786
Ending balance	(136,046)	(117,675)
Cash flow hedging activity
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Beginning balance	(1,238)	(3,458)
Other comprehensive income (loss) before reclassifications	80	529
Amounts reclassified from AOCL	23	114
Other comprehensive income	103	643
Ending balance	(1,135)	(2,815)
Noncontrolling Interest
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax	$ 3,900	$ 3,500	$ 3,400	$ 2,700

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Accumulated Other Comprehensive Loss (Reclassifications out of AOCI) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Sales	$ 866,318	$ 946,221
Tax benefit	(5,320)	(17,177)
Earnings attributable to common and participating shareholders	19,050	33,868
Net of tax	(1,659)	(1,840)
Cash flow hedging activity
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Net of tax	(23)	(114)
Amortization of actuarial losses
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification	(2,397)	(2,313)
Prior service costs
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Reclassification	(57)	(152)
Pension and other post-retirement effects
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Tax benefit	818	739
Net of tax	(1,636)	(1,726)
Reclassification out of Accumulated Other Comprehensive Income | Cash flow hedging activity
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Tax benefit	7	40
Earnings attributable to common and participating shareholders	(23)	(114)
Reclassification out of Accumulated Other Comprehensive Income | Foreign Exchange Contract | Cash flow hedging activity
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Sales	$ (30)	$ (154)

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Realignment Programs (Details) - USD ($) $ in Thousands	3 Months Ended		27 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Cost, Expected Cost	$ 400,000		$ 400,000
Restructuring Charges	1,508	$ 5,722	154,340
Non-Restructuring Charges	9,003	7,749	78,761
Total Realignment Program Charges	10,511	13,471	233,101
Restructuring Reserve [Roll Forward]
Beginning Balance	60,327	58,303
Charges, net of adjustments	1,508	5,722	154,340
Ending Balance	46,525	55,739	46,525
Severance
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(5,076)	3,817	97,635
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	(5,076)	3,817	97,635
Contract Termination
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	137	0	789
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	137	0	789
Asset Write-Downs
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	5,305	954	15,650
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	5,305	954	15,650
Other
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	1,142	951	40,266
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	1,142	951	40,266
Charges, net of adjustments
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(3,934)	4,768
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	(3,934)	4,768
Cash expenditures
Restructuring Reserve [Roll Forward]
Cash expenditures	(11,194)	(5,293)
Other non-cash adjustments, including currency
Restructuring Reserve [Roll Forward]
Other non-cash adjustments, including currency	1,326	(2,039)
Cost of Sales
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	2,065	1,444	91,413
Non-Restructuring Charges	2,972	5,767	45,256
Total Realignment Program Charges	5,037	7,211	136,669
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	2,065	1,444	91,413
Cost of Sales | Severance
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(3,757)	63	68,187
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	(3,757)	63	68,187
Cost of Sales | Contract Termination
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	137	0	746
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	137	0	746
Cost of Sales | Asset Write-Downs
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	4,953	918	13,870
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	4,953	918	13,870
Cost of Sales | Other
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	732	463	8,610
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	732	463	8,610
Selling, General and Administrative Expenses
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(557)	4,278	42,427
Non-Restructuring Charges	6,031	1,982	33,505
Total Realignment Program Charges	5,474	6,260	75,932
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	(557)	4,278	42,427
Selling, General and Administrative Expenses | Severance
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(1,319)	3,754	29,448
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	(1,319)	3,754	29,448
Selling, General and Administrative Expenses | Contract Termination
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0	0	43
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	0	0	43
Selling, General and Administrative Expenses | Asset Write-Downs
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	352	36	1,780
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	352	36	1,780
Selling, General and Administrative Expenses | Other
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	410	488	11,156
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	410	488	11,156
Income tax expense
Restructuring Cost and Reserve [Line Items]
Restructuring Charges			20,500
Total Realignment Program Charges			20,500
Restructuring Reserve [Roll Forward]
Charges, net of adjustments			20,500
Income tax expense | Severance
Restructuring Cost and Reserve [Line Items]
Restructuring Charges			0
Restructuring Reserve [Roll Forward]
Charges, net of adjustments			0
Income tax expense | Contract Termination
Restructuring Cost and Reserve [Line Items]
Restructuring Charges			0
Restructuring Reserve [Roll Forward]
Charges, net of adjustments			0
Income tax expense | Asset Write-Downs
Restructuring Cost and Reserve [Line Items]
Restructuring Charges			0
Restructuring Reserve [Roll Forward]
Charges, net of adjustments			0
Income tax expense | Other
Restructuring Cost and Reserve [Line Items]
Restructuring Charges			20,500
Restructuring Reserve [Roll Forward]
Charges, net of adjustments			20,500
R1 Realignment Program
Restructuring Reserve [Roll Forward]
Beginning Balance	12,594	25,156
Ending Balance	8,077	23,961	8,077
R1 Realignment Program | Charges, net of adjustments
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(3,431)	976
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	(3,431)	976
R1 Realignment Program | Cash expenditures
Restructuring Reserve [Roll Forward]
Cash expenditures	(4,124)	(1,294)
R1 Realignment Program | Other non-cash adjustments, including currency
Restructuring Reserve [Roll Forward]
Other non-cash adjustments, including currency	3,038	(877)
R1 Realignment Program | Cost of Sales | Severance
Restructuring Cost and Reserve [Line Items]
Restructuring Charges			48,200
Restructuring Reserve [Roll Forward]
Charges, net of adjustments			48,200
R2 Realignment Program
Restructuring Reserve [Roll Forward]
Beginning Balance	47,733	33,147
Ending Balance	38,448	31,778	38,448
R2 Realignment Program | Charges, net of adjustments
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(503)	3,792
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	(503)	3,792
R2 Realignment Program | Cash expenditures
Restructuring Reserve [Roll Forward]
Cash expenditures	(7,070)	(3,999)
R2 Realignment Program | Other non-cash adjustments, including currency
Restructuring Reserve [Roll Forward]
Other non-cash adjustments, including currency	(1,712)	(1,162)
Engineered Product Division
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(3,455)	3,927	58,473
Non-Restructuring Charges	1,815	(122)	27,968
Total Realignment Program Charges	(1,640)	3,805	86,441
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	(3,455)	3,927	58,473
Engineered Product Division | Cost of Sales
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(2,674)	1,520	32,037
Non-Restructuring Charges	1,101	99	17,261
Total Realignment Program Charges	(1,573)	1,619	49,298
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	(2,674)	1,520	32,037
Engineered Product Division | Selling, General and Administrative Expenses
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(781)	2,407	17,036
Non-Restructuring Charges	714	(221)	10,707
Total Realignment Program Charges	(67)	2,186	27,743
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	(781)	2,407	17,036
Engineered Product Division | Income tax expense
Restructuring Cost and Reserve [Line Items]
Restructuring Charges			9,400
Total Realignment Program Charges			9,400
Restructuring Reserve [Roll Forward]
Charges, net of adjustments			9,400
Industrial Product Division
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	4,860	1,528	70,405
Non-Restructuring Charges	5,044	2,401	27,437
Total Realignment Program Charges	9,904	3,929	97,842
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	4,860	1,528	70,405
Industrial Product Division | Cost of Sales
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	4,771	(184)	45,419
Non-Restructuring Charges	1,438	1,793	15,621
Total Realignment Program Charges	6,209	1,609	61,040
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	4,771	(184)	45,419
Industrial Product Division | Selling, General and Administrative Expenses
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	89	1,712	15,686
Non-Restructuring Charges	3,606	608	11,816
Total Realignment Program Charges	3,695	2,320	27,502
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	89	1,712	15,686
Industrial Product Division | Income tax expense
Restructuring Cost and Reserve [Line Items]
Restructuring Charges			9,300
Total Realignment Program Charges			9,300
Restructuring Reserve [Roll Forward]
Charges, net of adjustments			9,300
Flow Control Division
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	92	267	25,433
Non-Restructuring Charges	980	5,324	17,752
Total Realignment Program Charges	1,072	5,591	43,185
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	92	267	25,433
Flow Control Division | Cost of Sales
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(32)	108	13,957
Non-Restructuring Charges	433	3,860	12,366
Total Realignment Program Charges	401	3,968	26,323
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	(32)	108	13,957
Flow Control Division | Selling, General and Administrative Expenses
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	124	159	9,676
Non-Restructuring Charges	547	1,464	5,386
Total Realignment Program Charges	671	1,623	15,062
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	124	159	9,676
Flow Control Division | Income tax expense
Restructuring Cost and Reserve [Line Items]
Restructuring Charges			1,800
Total Realignment Program Charges			1,800
Restructuring Reserve [Roll Forward]
Charges, net of adjustments			1,800
Subtotal–Reportable Segments
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	1,497	5,722	154,311
Non-Restructuring Charges	7,839	7,603	73,157
Total Realignment Program Charges	9,336	13,325	227,468
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	1,497	5,722	154,311
Subtotal–Reportable Segments | Cost of Sales
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	2,065	1,444	91,413
Non-Restructuring Charges	2,972	5,752	45,248
Total Realignment Program Charges	5,037	7,196	136,661
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	2,065	1,444	91,413
Subtotal–Reportable Segments | Selling, General and Administrative Expenses
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	(568)	4,278	42,398
Non-Restructuring Charges	4,867	1,851	27,909
Total Realignment Program Charges	4,299	6,129	70,307
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	(568)	4,278	42,398
Subtotal–Reportable Segments | Income tax expense
Restructuring Cost and Reserve [Line Items]
Restructuring Charges			20,500
Total Realignment Program Charges			20,500
Restructuring Reserve [Roll Forward]
Charges, net of adjustments			20,500
Eliminations and All Other
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	11	0	29
Non-Restructuring Charges	1,164	146	5,604
Total Realignment Program Charges	1,175	146	5,633
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	11	0	29
Eliminations and All Other | Cost of Sales
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	0	0	0
Non-Restructuring Charges	0	15	8
Total Realignment Program Charges	0	15	8
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	0	0	0
Eliminations and All Other | Selling, General and Administrative Expenses
Restructuring Cost and Reserve [Line Items]
Restructuring Charges	11	0	29
Non-Restructuring Charges	1,164	131	5,596
Total Realignment Program Charges	1,175	131	5,625
Restructuring Reserve [Roll Forward]
Charges, net of adjustments	$ 11	$ 0	29
Eliminations and All Other | Income tax expense
Restructuring Cost and Reserve [Line Items]
Restructuring Charges			0
Total Realignment Program Charges			0
Restructuring Reserve [Roll Forward]
Charges, net of adjustments			$ 0

XML

Subsequent Events (Details) - Gestra [Member] - EUR (€) € in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Subsequent Event [Line Items]
Disposal Group, Not Discontinued Operation, Consideration	€ 186
Disposal Group, Not Discontinued Operation, Revenue		€ 92
Disposal Group, Not Discontinued Operation, Income Tax		€ 15
Disposal Group, Not Discontinued Operation, Estimated Gain (Loss) on Disposal	€ 40