CONDENSED CONSOLIDATING BALANCE SHEETS



	December 31, 2014
	Parent (Issuer)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated Total
(Amounts in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	51,200	$	—	$	399,150	$	—		$	450,350
Accounts receivable, net	—		258,386		824,061		—			1,082,447
Intercompany receivables	—		138,524		50,086		(188,610		)	—
Inventories, net	—		353,894		641,670		—			995,564
Other current assets	1,112		150,934		113,756		—			265,802
Total current assets	52,312		901,738		2,028,723		(188,610		)	2,794,163
Property, plant and equipment, net	—		240,204		453,677		—			693,881
Goodwill	—		709,239		358,016		—			1,067,255
Intercompany receivables	392,500		134,704		42,970		(570,174		)	—
Investment in consolidated subsidiaries	2,622,193		1,608,997		—		(4,231,190		)	—
Other assets, net	12,498		186,013		214,210		—			412,721
Total assets	$	3,079,503	$	3,780,895	$	3,097,596	$	(4,989,974	)	$	4,968,020

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	—	$	167,624	$	444,091	$	—		$	611,715
Intercompany payables	126		49,960		138,524		(188,610		)	—
Accrued liabilities	13,026		291,193		489,853		—			794,072
Debt due within one year	45,000		—		8,131		—			53,131
Deferred taxes	—		—		12,957		—			12,957
Total current liabilities	58,152		508,777		1,093,556		(188,610		)	1,471,875
Long-term debt due after one year	1,082,191		—		19,600		—			1,101,791
Intercompany payables	1,144		434,326		134,704		(570,174		)	—
Retirement obligations and other liabilities	6,454		215,599		230,458		—			452,511
Total liabilities	1,147,941		1,158,702		1,478,318		(758,784		)	3,026,177
Total Flowserve Corporation shareholders’ equity	1,931,562		2,622,193		1,608,997		(4,231,190		)	1,931,562
Noncontrolling interests	—		—		10,281		—			10,281
Total equity	1,931,562		2,622,193		1,619,278		(4,231,190		)	1,941,843
Total liabilities and equity	$	3,079,503	$	3,780,895	$	3,097,596	$	(4,989,974	)	$	4,968,020



	December 31, 2013
	Parent (Issuer)		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated Total
(Amounts in thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	29,086	$	—	$	334,718	$	—		$	363,804
Accounts receivable, net	—		263,594		891,733		—			1,155,327
Intercompany receivables	—		155,422		74,089		(229,511		)	—
Inventories, net	—		371,172		689,498		—			1,060,670
Other current assets, net	1,879		144,551		121,151		—			267,581
Total current assets	30,965		934,739		2,111,189		(229,511		)	2,847,382
Property, plant and equipment, net	—		220,072		496,217		—			716,289
Goodwill	—		715,722		391,829		—			1,107,551
Intercompany receivables	432,500		9,520		186,789		(628,809		)	—
Investment in consolidated subsidiaries	2,579,701		1,850,998		—		(4,430,699		)	—
Other assets, net	15,486		211,755		138,270		—			365,511
Total assets	$	3,058,652	$	3,942,806	$	3,324,294	$	(5,289,019	)	$	5,036,733

LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	—	$	163,254	$	448,838	$	—		$	612,092
Intercompany payables	81		74,008		155,422		(229,511		)	—
Accrued liabilities	12,874		293,012		555,124		—			861,010
Debt due within one year	40,000		5		32,673		—			72,678
Deferred taxes	—		—		12,319		—			12,319
Total current liabilities	52,955		530,279		1,204,376		(229,511		)	1,558,099
Long-term debt due after one year	1,126,904		—		715		—			1,127,619
Intercompany payables	1,144		618,145		9,520		(628,809		)	—
Retirement obligations and other liabilities	7,270		214,681		251,943		—			473,894
Total liabilities	1,188,273		1,363,105		1,466,554		(858,320		)	3,159,612
Total Flowserve Corporation shareholders’ equity	1,870,379		2,579,701		1,850,998		(4,430,699		)	1,870,379
Noncontrolling interests	—		—		6,742		—			6,742
Total equity	1,870,379		2,579,701		1,857,740		(4,430,699		)	1,877,121
Total liabilities and equity	$	3,058,652	$	3,942,806	$	3,324,294	$	(5,289,019	)	$	5,036,733

CONDENSED CONSOLIDATING STATEMENTS OF INCOME AND COMPREHENSIVE INCOME



	Year Ended December 31, 2014
	Parent (Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
(Amounts in thousands)
Sales	$	—		$	1,944,086		$	3,284,577		$	(350,778	)	$	4,877,885
Cost of sales	—			(1,261,913		)	(2,252,133		)	350,778			(3,163,268		)
Gross profit	—			682,173			1,032,444			—			1,714,617
Selling, general and administrative expense	(2,725		)	(395,650		)	(538,525		)	—			(936,900		)
Net earnings from affiliates	—			1,079			11,036			—			12,115
Net earnings from consolidated subsidiaries, net of tax	542,391			372,848			—			(915,239		)	—
Operating income	539,666			660,450			504,955			(915,239		)	789,832
Interest expense, net	(35,731		)	(10,824		)	(12,087		)	—			(58,642		)
Other income (expense), net	45			(11,697		)	13,652			—			2,000
Earnings before income taxes	503,980			637,929			506,520			(915,239		)	733,190
Provision for income taxes	14,844			(95,538		)	(127,611		)	—			(208,305		)
Net earnings, including noncontrolling interests	518,824			542,391			378,909			(915,239		)	524,885
Less: Net earnings attributable to noncontrolling interests	—			—			(6,061		)	—			(6,061		)
Net earnings attributable to Flowserve Corporation	$	518,824		$	542,391		$	372,848		$	(915,239	)	$	518,824
Comprehensive income attributable to Flowserve Corporation	$	359,895		$	383,198		$	184,648		$	(567,846	)	$	359,895



	Year Ended December 31, 2013
	Parent (Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
(Amounts in thousands)
Sales	$	—		$	1,952,235		$	3,388,258		$	(385,874	)	$	4,954,619
Cost of sales	—			(1,281,035		)	(2,371,363		)	385,874			(3,266,524		)
Gross profit	—			671,200			1,016,895			—			1,688,095
Selling, general and administrative expense	(3,079		)	(400,609		)	(563,141		)	—			(966,829		)
Net earnings from affiliates	—			1,175			37,842			—			39,017
Net earnings from consolidated subsidiaries, net of tax	505,764			345,465			—			(851,229		)	—
Operating income	502,685			617,231			491,596			(851,229		)	760,283
Interest expense, net	(29,729		)	(11,685		)	(11,568		)	—			(52,982		)
Other expense, net	—			(767		)	(13,513		)	—			(14,280		)
Earnings before income taxes	472,956			604,779			466,515			(851,229		)	693,021
Provision for income taxes	12,574			(99,015		)	(118,260		)	—			(204,701		)
Net earnings, including noncontrolling interests	485,530			505,764			348,255			(851,229		)	488,320
Less: Net earnings attributable to noncontrolling interests	—			—			(2,790		)	—			(2,790		)
Net earnings attributable to Flowserve Corporation	$	485,530		$	505,764		$	345,465		$	(851,229	)	$	485,530
Comprehensive income attributable to Flowserve Corporation	$	488,363		$	508,929		$	316,484		$	(825,413	)	$	488,363



	Year Ended December 31, 2012
	Parent (Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
(Amounts in thousands)
Sales	$	—		$	1,833,613		$	3,272,519		$	(354,793	)	$	4,751,339
Cost of sales	—			(1,190,206		)	(2,334,975		)	354,793			(3,170,388		)
Gross profit	—			643,407			937,544			—			1,580,951
Selling, general and administrative expense	(3,571		)	(390,713		)	(527,841		)	—			(922,125		)
Net earnings from affiliates	—			3,855			13,097			—			16,952
Net earnings from consolidated subsidiaries, net of tax	456,740			309,223			—			(765,963		)	—
Operating income	453,169			565,772			422,800			(765,963		)	675,778
Interest expense, net	(9,881		)	(19,347		)	(13,338		)	—			(42,566		)
Other expense income, net	—			(683		)	(20,964		)	—			(21,647		)
Earnings before income taxes	443,288			545,742			388,498			(765,963		)	611,565
Provision for income taxes	5,051			(89,002		)	(76,815		)	—			(160,766		)
Net earnings, including noncontrolling interests	448,339			456,740			311,683			(765,963		)	450,799
Less: Net earnings attributable to noncontrolling interests	—			—			(2,460		)	—			(2,460		)
Net earnings attributable to Flowserve Corporation	$	448,339		$	456,740		$	309,223		$	(765,963	)	$	448,339
Comprehensive income attributable to Flowserve Corporation	$	440,127		$	446,536		$	292,167		$	(738,703	)	$	440,127

CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS



	Year Ended December 31, 2014
	Parent (Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
(Amounts in thousands)
Net cash flows provided by operating activities	$	353,736		$	611,190		$	524,113		$	(918,077	)	$	570,962
Cash flows — Investing activities:
Capital expenditures	—			(57,125		)	(75,494		)	—			(132,619		)
Proceeds from sale of business, net of cash divested	—			—			46,805			—			46,805
Intercompany short-term financing, net	—			—			1,429			(1,429		)	—
Intercompany loan proceeds	40,000			126			143,820			(183,946		)	—
Intercompany loan payments	—			(11,172		)	—			11,172			—
Intercompany return of capital	—			1,965			—			(1,965		)	—
Proceeds from disposal of assets	—			162			1,569			—			1,731
Net cash flows provided (used) by investing activities	40,000			(66,044		)	118,129			(176,168		)	(84,083		)
Cash flows — Financing activities:
Excess tax benefits from stock-based payment arrangements	—			6,579			2,008			—			8,587
Payments on long-term debt	(40,000		)	—			—			—			(40,000		)
Proceeds under other financing arrangements	—			—			18,483			—			18,483
Payments under other financing arrangements	—			(5		)	(20,497		)	—			(20,502		)
Repurchases of common shares	(246,504		)	—			—			—			(246,504		)
Payments of dividends	(85,118		)	—			—			—			(85,118		)
Intercompany short-term financing, net	—			(1,429		)	—			1,429			—
Intercompany loan proceeds	—			—			11,172			(11,172		)	—
Intercompany loan payments	—			(183,819		)	(126		)	183,945			—
Intercompany distributions of capital	—			—			(1,965		)	1,965			—
Intercompany dividends	—			(366,472		)	(551,606		)	918,078			—
All other financing, net	—			—			(2,604		)	—			(2,604		)
Net cash flows used by financing activities	(371,622		)	(545,146		)	(545,135		)	1,094,245			(367,658		)
Effect of exchange rate changes on cash	—			—			(32,675		)	—			(32,675		)
Net change in cash and cash equivalents	22,114			—			64,432			—			86,546
Cash and cash equivalents at beginning of year	29,086			—			334,718			—			363,804
Cash and cash equivalents at end of year	$	51,200		$	—		$	399,150		$	—		$	450,350



	Year Ended December 31, 2013
	Parent (Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
(Amounts in thousands)
Net cash flows provided by operating activities	$	261,741		$	279,594		$	214,066		$	(267,642	)	$	487,759
Cash flows — Investing activities:
Capital expenditures	—			(44,380		)	(94,710		)	—			(139,090		)
Payments for acquisitions, net of cash acquired	—			(66,658		)	(10,143		)	—			(76,801		)
Intercompany loan proceeds	30,000			911			72,037			(102,948		)	—
Intercompany loan payments	—			(68		)	(173,510		)	173,578			—
Proceeds from disposal of assets	—			110			1,543			—			1,653
Proceeds from equity investment in affiliates	—			—			46,240			—			46,240
Net cash flows provided (used) by investing activities	30,000			(110,085		)	(158,543		)	70,630			(167,998		)
Cash flows — Financing activities:
Excess tax benefits from stock-based payment arrangements	—			8,266			1,845			—			10,111
Payments on long-term debt	(25,000		)	—			—			—			(25,000		)
Proceeds from issuance of senior notes	298,596			—			—			—			298,596
Proceeds under other financing arrangements	—			—			10,674			—			10,674
Payments under other financing arrangements	—			(20		)	(11,055		)	—			(11,075		)
Repurchases of common shares	(458,310		)	—			—			—			(458,310		)
Payments of dividends	(76,897		)	—			—			—			(76,897		)
Payment of deferred loan costs	(3,744		)	—			—			—			(3,744		)
Intercompany loan proceeds	—			173,510			68			(173,578		)	—
Intercompany loan payments	—			(102,037		)	(911		)	102,948			—
Intercompany dividends	—			(249,228		)	(18,414		)	267,642			—
All other financing, net	91			—			(270		)	—			(179		)
Net cash flows used by financing activities	(265,264		)	(169,509		)	(18,063		)	197,012			(255,824		)
Effect of exchange rate changes on cash	—			—			(4,385		)	—			(4,385		)
Net change in cash and cash equivalents	26,477			—			33,075			—			59,552
Cash and cash equivalents at beginning of year	2,609			—			301,643			—			304,252
Cash and cash equivalents at end of year	$	29,086		$	—		$	334,718		$	—		$	363,804



	Year Ended December 31, 2012
	Parent (Issuer)			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated Total
(Amounts in thousands)
Net cash flows provided by operating activities	$	277,076		$	193,819		$	298,616		$	(252,381	)	$	517,130
Cash flows — Investing activities:
Capital expenditures	—			(43,600		)	(91,939		)	—			(135,539		)
Payments for acquisitions, net of cash acquired	—			—			(3,996		)	—			(3,996		)
Intercompany loan proceeds	12,499			32,705			54,746			(99,950		)	—
Intercompany loan payments	—			(28,372		)	(138,918		)	167,290			—
Intercompany capital contribution	—			(483		)	—			483			—
Proceeds from disposal of assets	—			2,268			14,665			—			16,933
Affiliate investment activity, net	—			—			(3,825		)	—			(3,825		)
Net cash flows provided (used) by investing activities	12,499			(37,482		)	(169,267		)	67,823			(126,427		)
Cash flows — Financing activities:
Excess tax benefits from stock-based payment arrangements	—			8,985			2,222			—			11,207
Payments on long-term debt	(480,000		)	—			—			—			(480,000		)
Proceeds from issuance of senior notes	498,075			—			—			—			498,075
Proceeds from issuance of long-term debt	400,000			—			—			—			400,000
Proceeds under other financing arrangements	—			—			15,886			—			15,886
Payments under other financing arrangements	9			(20		)	(10,068		)	—			(10,079		)
Repurchase of common shares	(771,942		)	—			—			—			(771,942		)
Payment of dividends	(73,765		)	—			—			—			(73,765		)
Payment of deferred loan costs	(9,901		)	—			—			—			(9,901		)
Intercompany loan proceeds	—			138,918			28,372			(167,290		)	—
Intercompany loan payments	—			(67,245		)	(32,705		)	99,950			—
Intercompany capital contribution	—			—			483			(483		)	—
Intercompany dividends	—			(236,975		)	(15,406		)	252,381			—
All other financing, net	250			—			(8,653		)	—			(8,403		)
Net cash flows used by financing activities	(437,274		)	(156,337		)	(19,869		)	184,558			(428,922		)
Effect of exchange rate changes on cash	—			—			5,115			—			5,115
Net change in cash and cash equivalents	(147,699		)	—			114,595			—			(33,104		)
Cash and cash equivalents at beginning of year	150,308			—			187,048			—			337,356
Cash and cash equivalents at end of year	$	2,609		$	—		$	301,643		$	—		$	304,252