In the first quarter of 2023, we identified and initiated certain realignment activities concurrent with the consolidation of our FPD aftermarket and pump operations into a single operating model. This consolidated operating model was designed to better align our go-to-market strategy with our product offerings, enable end-to-end lifecycle responsibility and accountability, and to facilitate more efficient operations. During 2023, we also initiated certain product and portfolio optimization activities. Collectively, the above realignment activities are referred to as the "2023 Realignment Programs." The activities of the 2023 Realignment Programs were identified and implemented in phases throughout 2023 and 2024 and are substantially completed.

In the fourth quarter of 2024, we launched the complexity reduction ("CORE") program within the portfolio excellence category of the Flowserve Business System. The CORE program focuses on product rationalization and continuous improvement of our overall product portfolio. During 2025, we also initiated certain other portfolio and footprint optimization activities. These optimization activities together with the CORE program, are referred to as the "2025 Realignment Programs." We currently anticipate a total investment in the 2025 Realignment Programs, which have been evaluated and initiated, of approximately $23 million of which $8 million is estimated to be non-cash. We are evaluating the annualized cost savings expected to be achieved upon completion of the activities of the 2025 Realignment Programs that have been identified and initiated to date. Actual savings could vary from expected savings.

The realignment activities consist of restructuring and non-restructuring charges. Restructuring charges represent costs associated with the relocation of certain business activities and facility closures and include related severance costs. Non-restructuring charges are primarily employee severance associated with the workforce reductions and professional service fees. Expenses are primarily reported in cost of sales ("COS") or SG&A, as applicable, in our condensed consolidated statements of income. There are certain remaining realignment activities that are currently being evaluated, but have not yet been approved and therefore are not included in the above anticipated total investment.

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


	Three Months Ended March 31, 2025
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	3,616	$	7,109	$	10,725	$	—	$	10,725
SG&A	106		—		106		—		106

	$	3,722	$	7,109	$	10,831	$	—	$	10,831
Non-Restructuring Charges
COS	$	(637)	$	(8)	$	(645)	$	(66)	$	(711)
SG&A	(1,103)		(121)		(1,224)		(185)		(1,409)
	$	(1,740)	$	(129)	$	(1,869)	$	(251)	$	(2,120)












Total Realignment Charges
COS	$	2,979	$	7,101	$	10,080	$	(66)	$	10,014
SG&A	(997)		(121)		(1,118)		(185)		(1,303)

Total	$	1,982	$	6,980	$	8,962	$	(251)	$	8,711


	Three Months Ended March 31, 2024
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	4,414	$	15	$	4,429	$	—	$	4,429
SG&A	701		—		701		—		701

	$	5,115	$	15	$	5,130	$	—	$	5,130
Non-Restructuring Charges
COS	$	630	$	752	$	1,382	$	(138)	$	1,244
SG&A	340		114		454		339		793
	$	970	$	866	$	1,836	$	201	$	2,037
Total Realignment Charges
COS	$	5,044	$	767	$	5,811	$	(138)	$	5,673
SG&A	1,041		114		1,155		339		1,494

Total	$	6,085	$	881	$	6,966	$	201	$	7,167


	Inception to Date
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		All Other		Consolidated Total
Realignment Charges
Restructuring Charges
COS	$	3,616	$	7,109	$	10,725	$	—	$	10,725
SG&A	106		—		106		—		106

	$	3,722	$	7,109	$	10,831	$	—	$	10,831
Non-Restructuring Charges
COS	$	2,305	$	(8)	$	2,297	$	(66)	$	2,231
SG&A(1)	(1,103)		(121)		(1,224)		(185)		(1,409)
	$	1,202	$	(129)	$	1,073	$	(251)	$	822
Total Realignment Charges
COS	$	5,921	$	7,101	$	13,022	$	(66)	$	12,956
SG&A	(997)		(121)		(1,118)		(185)		(1,303)

Total	$	4,924	$	6,980	$	11,904	$	(251)	$	11,653

(1) Includes the immaterial reversal of previously recognized realignment charges associated with our 2023 Realignment Programs, which was recognized in the first quarter of 2025. Our 2023 Realignment Programs are substantially completed.


	Inception to Date
(Amounts in thousands)	FPD		FCD		Subtotal–Reportable Segments		All Other		Consolidated Total
Realignment Charges
COS	$	27,076	$	5,041	$	32,117	$	66	$	32,183
SG&A	1,355		12,376		13,731		(28)		13,703
Loss on sale of business(1)	—		12,981		12,981		—		12,981
	$	28,431	$	30,398	$	58,829	$	38	$	58,867
Non-Restructuring Charges
COS	$	11,506	$	6,612	$	18,118	$	(655)	$	17,463
SG&A	14,256		2,112		16,368		19,893		$	36,261
	$	25,762	$	8,724	$	34,486	$	19,238	$	53,724
Total Realignment Charges
COS	$	38,582	$	11,653	$	50,235	$	(589)	$	49,646
SG&A	15,611		14,488		30,099		19,865		$	49,964
Loss on sale of business(1)	—		12,981		12,981		—		$	12,981
Total	$	54,193	$	39,122	$	93,315	$	19,276	$	112,591

(1) Loss on sale of business related to NAF AB control valves business as described within Note 1, "Significant Accounting Policies and Accounting Developments," to our consolidated financial statements included in our 2024 Annual Report.

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 the termination of operating leases or other contract termination costs. Asset write-downs include accelerated depreciation of fixed assets, accelerated amortization of intangible assets, divestiture of certain non-strategic assets and inventory write-downs. Other costs generally include costs related to employee relocation, asset relocation, vacant facility costs (i.e., taxes and insurance) and other charges. Restructuring charges include charges related to approved, but not yet announced, facility closures.


	Three Months Ended March 31, 2025
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs (Gains)		Other		Total

COS	$	7,655	$	—	$	2,000	$	1,070	$	10,725
SG&A	22		—		—		84		106

Total	$	7,677	$	—	$	2,000	$	1,154	$	10,831


	Three Months Ended March 31, 2024
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs (Gains)		Other		Total
COS	$	3,985	$	—	$	—	$	444	$	4,429
SG&A	701		—		—		—		701

Total	$	4,686	$	—	$	—	$	444	$	5,130


	Inception to Date
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs (Gains)		Other		Total
COS	$	7,655	$	—	$	2,000	$	1,070	$	10,725
SG&A	22		—		—		84		106

Total	$	7,677	$	—	$	2,000	$	1,154	$	10,831


	Inception to Date
(Amounts in thousands)	Severance		Contract Termination		Asset Write-Downs		Other		Total
COS	$	14,164	$	301	$	13,655	$	4,063	$	32,183
SG&A	1,106		—		12,621		(24)		13,703
Loss on sale of business(1)	—		—		—		12,981		12,981
Total	$	15,270	$	301	$	26,276	$	17,020	$	58,867


(Amounts in thousands)	2025		2024
Balance at January 1,	$	8,300	$	8,184
Charges, net of adjustments	8,831		5,130
Cash expenditures	(3,537)		(387)
Other non-cash adjustments, including currency	(684)		(849)
Balance at March 31,	$	12,910	$	12,078