Robert Scott Rowe - Feb 15, 2022 Form 4 Insider Report for FLOWSERVE CORP (FLS)

Role: President & CEO, Director
Signature: /s/ Shakeeb U. Mir, attorney-in-fact
Stock symbol: FLS
Transactions as of: Feb 15, 2022
Transactions value $: -$672,739
Form type: 4
Date filed: 2/17/2022, 04:02 PM
Next filing: Feb 22, 2022

Transactions Table

Type	Sym	Class	Transaction	Value $	Shares	Change %	* Price $	Shares After	Date	Ownership	Footnotes
transaction	FLS	Common Stock	Options Exercise		+23.4K	+11.94%		220K	Feb 15, 2022	Direct	F1
transaction	FLS	Common Stock	Tax liability	-$347K	-10.6K	-4.85%	$32.62	209K	Feb 15, 2022	Direct
transaction	FLS	Common Stock	Options Exercise	$0	+24.9K	+11.91%	$0.00	234K	Feb 16, 2022	Direct
transaction	FLS	Common Stock	Tax liability	-$326K	-9.76K	-4.18%	$33.36	224K	Feb 16, 2022	Direct

Derivative Securities (e.g., puts, calls, warrants, options, convertible securities)

Type	Sym	Class	Transaction	Value $	Shares	Change %	* Price $	Shares After	Date	Underlying Class	Amount	Exercise Price	Ownership	Footnotes
transaction	FLS	Restricted Stock Units	Award	$0	+87.9K	+36.41%	$0.00	329K	Feb 15, 2022	Common Stock	87.9K		Direct	F2
transaction	FLS	Performance Rights	Award	$0	+87.9K	+44.14%	$0.00	287K	Feb 15, 2022	Common Stock	87.9K		Direct	F3
transaction	FLS	Performance Rights	Options Exercise	$0	-65.7K	-22.88%	$0.00	221K	Feb 15, 2022	Common Stock	65.7K		Direct	F1
transaction	FLS	Restricted Stock Units	Options Exercise	$0	-24.3K	-7.39%	$0.00	305K	Feb 16, 2022	Common Stock	24.3K		Direct	F2

* An asterisk sign (*) next to the price indicates that the price is likely invalid.

Explanation of Responses:

Id	Content
F1	Each performance right represented a contingent right to receive one share of the issuer's common stock at vesting. The performance rights vested at a rate of 33.3% (plus dividends accrued on the underlying shares) based on two factors during the three-year performance cycle beginning on January 1, 2019 and ending on December 31, 2021, which are: 1) the issuer's relative total shareholder return ("TSR") in comparison to the TSR averages of a predetermined compensation peer group over the performance cycle; and 2) the issuer's return on invested capital ("ROIC") measured against the issuer's targeted ROIC improvement under its operating plan. The performance rights may be settled, at the issuer's discretion, in cash or shares of common stock.
F2	Each restricted stock unit represents the right to receive, at settlement, one share of common stock (plus dividends accrued on the underlying shares) and are granted to the reporting person pursuant to the issuer's long-term incentive compensation plan for employees. The shares vest ratably over a three-year period on each annual anniversary of the grant.
F3	Each performance right represents a contingent right to receive one share of the issuer's common stock at vesting. The performance rights vest at a rate between 0% and 200% and are based on two factors during a three-year performance cycle beginning on January 1, 2022 and ending on December 31, 2024 which are: 1) the issuer's return on invested capital ("ROIC") measured against the issuer's targeted ROIC improvement under its operating plan for each calendar year during the performance period; and 2) the issuer's free cash flow ("FCF") as a percentage of net income over the entire performance period. The performance rights are also subject to 15% payout modifier (positive or negative) based on the issuer's relative total shareholder return ("TSR") in comparison to the TSR averages of companies that comprise the S&P 500 Industrial Index for the entire performance period. The performance rights may be settled, at the issuer's discretion, in cash or shares of common stock.