Realignment and Transformation Programs (Tables)

3 Months Ended

Mar. 31, 2020

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

The following is a summary of total charges, net of adjustments, related to the Realignment and Flowserve 2.0 Transformation program charges:

	Three Months Ended March 31, 2020
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		Eliminations and All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	1,680	$	(105)	$	1,575	$	—	$	1,575
SG&A	104		10		114		(16)		98
	$	1,784	$	(95)	$	1,689	$	(16)	$	1,673
Non-Restructuring Charges
COS	$	126	$	7,759	$	7,885	$	—	$	7,885
SG&A	485		50		535		645		1,180
	$	611	$	7,809	$	8,420	$	645	$	9,065
Total Realignment Charges
COS	$	1,806	$	7,654	$	9,460	$	—	$	9,460
SG&A	589		60		649		629		$	1,278
Total	$	2,395	$	7,714	$	10,109	$	629	$	10,738
Transformation Charges
SG&A	$	—	$	—	$	—	$	5,643	$	5,643
	$	—	$	—	$	—	$	5,643	$	5,643
Total Realignment and Transformation Charges
COS	$	1,806	$	7,654	$	9,460	$	—	$	9,460
SG&A	589		60		649		6,272		6,921
Total	$	2,395	$	7,714	$	10,109	$	6,272	$	16,381

	Three Months Ended March 31, 2019
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		Eliminations and All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	2,622	$	456	$	3,078	$	—	$	3,078
SG&A(1)	(18,471)		338		(18,133)		—		(18,133)
	$	(15,849)	$	794	$	(15,055)	$	—	$	(15,055)
Non-Restructuring Charges
COS	$	2,396	$	26	$	2,422	$	—	$	2,422
SG&A	174		—		174		529		703
	$	2,570	$	26	$	2,596	$	529	$	3,125
Total Realignment Charges
COS	$	5,018	$	482	$	5,500	$	—	$	5,500
SG&A	(18,297)		338		(17,959)		529		$	(17,430)
Total	$	(13,279)	$	820	$	(12,459)	$	529	$	(11,930)
Transformation Charges
SG&A	$	—	$	—	$	—	$	8,413	$	8,413
	$	—	$	—	$	—	$	8,413	$	8,413
Total Realignment and Transformation Charges
COS	$	5,018	$	482	$	5,500	$	—	$	5,500
SG&A	(18,297)		$	338	(17,959)		8,942		(9,017)
Total	$	(13,279)	$	820	$	(12,459)	$	8,942	$	(3,517)

_______________________________

(1) Primarily consists of gains from the sales of non-strategic manufacturing facilities that are included in our Realignment Programs.

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

	Inception to Date
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		Eliminations and All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	111,871	$	29,573	$	141,444	$	—	$	141,444
SG&A	20,404		10,021		30,425		301		30,726
Income tax expense(1)	14,700		1,800		16,500		—		16,500
	$	146,975	$	41,394	$	188,369	$	301	$	188,670
Non-Restructuring Charges
COS	$	80,048	$	23,219	$	103,267	$	263	$	103,530
SG&A(2)	41,893		7,780		49,673		20,575		70,248
	$	121,941	$	30,999	$	152,940	$	20,838	$	173,778
Total Realignment Charges
COS	$	191,919	$	52,792	$	244,711	$	263	$	244,974
SG&A(2)	62,297		17,801		80,098		20,876		100,974
Income tax expense(1)	14,700		1,800		16,500		—		16,500
Total	$	268,916	$	72,393	$	341,309	$	21,139	$	362,448

____________________________

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

(2) Includes gains from the sales of non-strategic manufacturing facilities that are included in our Realignment Programs.

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

	Three Months Ended March 31, 2020
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs/ (Gains)		Other		Total
COS	$	1,683	$	—	$	(3)	$	(105)	$	1,575
SG&A	139		—		(3)		(38)		98
Total	$	1,822	$	—	$	(6)	$	(143)	$	1,673

	Three Months Ended March 31, 2019
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs		Other		Total
COS	$	1,679	$	39	$	233	$	1,127	$	3,078
SG&A(1)	316		—		(18,502)		53		(18,133)
Total	$	1,995	$	39	$	(18,269)	$	1,180	$	(15,055)

_______________________

(1) Primarily consists of gains from the sales of non-strategic manufacturing facilities that are included in our Realignment Programs.

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
COS	$	89,026	$	965	$	22,550	$	28,903	$	141,444
SG&A	34,095		43		(16,743)		13,331		30,726
Income tax expense(1)	—		—		—		16,500		16,500
Total	$	123,121	$	1,008	$	5,807	$	58,734	$	188,670

_______________________________

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

Schedule of Restructuring Reserve by Type of Cost

The following represents the activity, primarily severance, related to the restructuring reserve for the Realignment Programs for the three months ended March 31, 2020 and 2019:

(Amounts in thousands)	2020		2019
Balance at January 1	$	6,703	$	11,927
Charges, net of adjustments	1,658		3,213
Cash expenditures	(1,827)		(3,221)
Other non-cash adjustments, including currency	(216)		(314)
Balance at March 31	$	6,318	$	11,605