FLOWSERVE CORP — Director's Dealing 2018

Mar 26, 2018

SEC Form 3 — Initial Statement of Beneficial Ownership

Issuer: FLOWSERVE CORP (FLS)
CIK: 0000030625
Period of Report: 2018-03-17

Reporting Person: Armstrong Charles L. (Interim Chief Legal Officer)

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	3437	Direct

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Restricted Stock Units	$		Common Stock (5342.0)		Direct
Performance Rights	$		Common Stock (3620.0)		Direct

Footnotes

F1: Shares are held in the issuer's 401(k) stock fund.

F2: Each restricted stock unit represents the right to receive, at settlement, one share of common stock, plus accrued dividends, and are granted to the reporting person pursuant to the issuer's long-term incentive compensation plan for employees. The restricted stock units were originally granted on February 3, 2016, May 18, 2016, February 1, 2017, December 20, 2017 and February 28, 2018 and 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 a number of factors during a three-year performance cycle which may include but are not limited to: 1) the issuer's average return on net assets ("RONA") in comparison to the RONA averages of a predetermined peer group; 2) the issuer's growth in bookings in comparison to the issuer's operating plan; 3) the issuer's relative total share holder return ("TSR") in comparison to the TSR averages of a predetermined peer group; and 4) the issuer's return on invested capital measured against the issuer's performance relative to its weighted average cost of capital and relative to a predetermined peer group. The performance rights may be settled, at the issuer's discretion, in cash or shares of common stock.