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 2012 and 2011 are as follows:

(In thousands)	Flow Control		Controls		Surface Technologies		Consolidated
December 31, 2010	$	310,047	$	354,607	$	28,918	$	693,572
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
Acquisitions	$	88,975	$	146,974	$	11,913	$	247,862
Divestitures		-		-		(3,649)		(3,649)
Goodwill adjustments		(707)		429		-		(278)
Foreign currency translation adjustment		1,697		8,039		187		9,923
December 31, 2012	$	418,184	$	541,226	$	53,890	$	1,013,300

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.

During 2012, the Corporation finalized the allocation of the purchase price for all businesses acquired prior to 2012. In 2012, $51.0 million of the goodwill on acquisitions is deductible for tax purposes. In 2011, $44.0 million of the goodwill on the 2011 on acquisitions is deductible for tax purposes.

The Corporation completed its annual goodwill impairment testing as of October 31, 2012, 2011, and 2010 and concluded that there was no impairment of value. The estimated fair value of the reporting units also substantially exceeds the recorded book value, with the exception of the oil and gas reporting unit, in the Flow Control segment. Based on the annual impairment test, the Corporation determined that the oil and gas reporting unit's estimated fair value was not substantially in excess of its carrying amount.