FLOWSERVE CORPORATION Item 2.02 Results of Operations and Financial Condition.
On
The information in this Item 2.02 of Form 8-K and in Exhibit 99.1 attached hereto is furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.
Item 7.01 Regulation FD Disclosure.
Earnings Presentation
On
Other Events
The Company is also filing this Current Report on Form 8-K to describe revisions
for immaterial errors, primarily related to the recognition of a liability for
unasserted asbestos claims. The adjustments primarily relate to an incurred but
not reported ("IBNR") liability but also include adjustments related to the
associated receivables for expected insurance proceeds for asbestos settlement
and defense costs from insurance coverage and the selling, general, and
administrative ("SG&A") expense for related legal fees for periods beginning
with the fiscal year ended
In conjunction with its close processes for the third quarter of 2020 and in
connection with a review of the accounting treatment of a favorable legal
settlement of a dispute with certain insurance carriers for one of our legacy
product lines, the Company identified and corrected accounting errors related to
the recognition of a liability for unasserted asbestos claims. While the Company
has historically recognized a liability for known asbestos claims, the Company
has not previously recognized an IBNR liability associated with unasserted
asbestos claims. When the Company made an outlay for the settlement of these
cases, it was partially or fully offset by establishing a receivable for
insurance that exists for the product-line or brand. As part of its review of
this accounting treatment, the Company retained a third-party actuarial
consultant to review information pertaining to our asbestos liability. Based on
the results of this analysis, the Company recognized an IBNR liability related
to the periods beginning with the fiscal year ended
The cumulative effect of these corrections resulted in an increase in
liabilities including an IBNR for unasserted asbestos claims of approximately
The impact of the above corrections on the Company's previously reported
financial results, which will be reflected in the Company's future filings, is
presented in the preliminary unaudited schedules in Exhibit 99.2 furnished
herewith. The Company expects to file its Form 10-Q for the third quarter ended
The information in this Item 7.01 of Form 8-K and in Exhibit 99.2 attached hereto is furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.
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Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Description 99.1 Press Release, datedNovember 5, 2020 99.2 Supplemental Revised Historical Information
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