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 2011 and 2010 are as follows:

(In thousands)	Flow Control		Motion Control		Metal Treatment		Consolidated
December 31, 2009	$	308,051	$	311,546	$	28,855	$	648,452
Goodwill from 2010 acquisitions		-		27,139		-		27,139
Goodwill adjustments		16		(1,968)		-		(1,952)
Foreign currency translation adjustment		1,980		17,890		63		19,933
December 31, 2010	$	310,047	$	354,607	$	28,918	$	693,572
Goodwill from 2011 acquisitions	$	19,996	$	41,667	$	16,578	$	78,241
Divestitures		(540)		(1,170)		-		(1,710)
Goodwill adjustments		-		(3,955)		-		(3,955)
Foreign currency translation adjustment		(1,284)		(5,365)		(57)		(6,706)
December 31, 2011	$	328,219	$	385,784	$	45,439	$	759,442

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 based on the date of acquisition. The goodwill adjustments during 2011 primarily reflect the reversal of a liability, which under the legacy accounting guidance for business combinations, was reversed against goodwill.

During 2011, the Corporation finalized the allocation of the purchase price for all businesses acquired prior to 2011. In 2011, $43.4 million of the goodwill on acquisitions made is deductible for tax purposes. None of the goodwill on the 2010 acquisitions is deductible for tax purposes.

The Corporation completed its annual goodwill impairment testing as of October 31, 2011, 2010, and 2009 and concluded that there was no impairment of value.

As of January 1, 2010, one of the Corporation's Canadian entities changed its functional currency from the U.S. dollar to the Canadian dollar. The nature of this operation's cash flow changed from predominantly U.S. dollar to the Canadian dollar, therefore requiring the change in functional currency. In accordance with the guidance on foreign currency translation, an adjustment of $13.4 million, attributable to current-rate translation, was recorded to goodwill. This adjustment resulted in an increase to goodwill and is reported within the “Foreign currency translation adjustment” caption above.