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GOODWILL

6 Months Ended

Jun. 30, 2011

5. GOODWILL

The Corporation accounts for acquisitions by assigning the purchase price to acquired tangible and intangible assets and liabilities assumed. Assets acquired and liabilities assumed are recorded at their fair values, and the excess of the purchase price over the amounts assigned is recorded as goodwill.

The changes in the carrying amount of goodwill for the six months ended June 30, 2011 are as follows:

		(In thousands)
	Flow Control		Motion Control		Metal Treatment		Consolidated
December 31, 2010	$	310,047	$	354,607	$	28,918	$	693,572
Acquisitions		5,191		4,108		3,476		12,775
Foreign currency translation adjustment		1,601		9,298		171		11,070
Goodwill adjustments		-		(4,160)		-		(4,160)
June 30, 2011	$	316,839	$	363,853	$	32,565	$	713,257

The purchase price allocations relating to the businesses acquired are initially based on estimates. The Corporation adjusts these estimates based upon final analysis including input from third party appraisals, when deemed appropriate. The determination of fair value is finalized no later than twelve months from acquisition. Goodwill adjustments represent subsequent adjustments to the purchase price allocation for acquisitions as determined by the respective accounting guidance requirements for business combination accounting based on the date of acquisition.