0000030625 2010-03-31 0000030625 2009-12-31 0000030625 2011-03-31 0000030625 2010-12-31 0000030625 2010-01-01 2010-03-31 0000030625 2010-06-30 0000030625 2011-04-21 0000030625 2011-01-01 2011-03-31 iso4217:USD xbrli:shares xbrli:shares iso4217:USD     <div style="font-family: 'Times New Roman',Times,serif"> <div align="center" style="font-size: 10pt; margin-top: 0pt"><b> </b> </div> <div align="left"> </div> <div align="justify" style="font-size: 10pt; margin-top: 0pt"><b></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>1. Basis of Presentation and Accounting Policies</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Basis of Presentation</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        The accompanying condensed consolidated balance sheet as of March 31, 2011, the related condensed consolidated statements of income and comprehensive income for the three months ended March 31, 2011 and 2010, and the condensed consolidated statements of cash flows for the three months ended March 31, 2011 and 2010, of Flowserve Corporation, are unaudited. In management’s opinion, all adjustments comprising normal recurring adjustments necessary for a fair presentation of such condensed consolidated financial statements have been made. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        The accompanying condensed consolidated financial statements and notes in this Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2011 (“Quarterly Report”) are presented as permitted by Regulation S-X and do not contain certain information included in our annual consolidated financial statements and notes thereto. Accordingly, the accompanying condensed consolidated financial information should be read in conjunction with the consolidated financial statements presented in our Annual Report on Form 10-K for the year ended December 31, 2010 (“2010 Annual Report”). </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        <i>Recent Events in North Africa, Middle East and Japan </i>– We experienced limited shipment delays in the first quarter of 2011 resulting from the recent developing political and economic conditions in North Africa. We estimate the unfavorable impact on operating income of these shipment delays was $2.5 million in the first quarter of 2011, with EPD and IPD impacted $1.8 million and $0.7 million, respectively. We are closely monitoring the conditions in the Middle East and North Africa and, while there are many potential outcomes in each individual country, based on current facts and circumstances as we understand them, we anticipate that the delayed shipments should be released throughout the remainder of the year. The preponderance of our physical assets in the region are located in the Kingdom of Saudi Arabia and the United Arab Emirates and have, to date, not been affected by the unrest elsewhere in the region. Additionally, although our organization and assets were not directly affected by the earthquake and tsunami in Japan, we continue to assess the conditions and potential adverse impacts, in particular as they relate to our customers and suppliers in the impacted geographical regions, as well as potential regulatory impacts to the overall civilian nuclear market. We did not experience any significant adverse impacts due to shipment delays, collection issues or supply chain disruptions during the first quarter of 2011. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        <i>Venezuela </i>– As previously disclosed in our 2009 and 2010 Annual Reports, effective January 11, 2010, the Venezuelan government devalued its currency (Bolivar) and moved to a two-tier exchange structure. The official exchange rate moved from 2.15 to 4.30 Bolivars to the United States (“U.S.”) dollar for non-essential items and to 2.60 Bolivars to the U.S. dollar for essential items. Additionally, effective January 1, 2010, Venezuela was designated as hyperinflationary, and as a result, we began to use the U.S. dollar as our functional currency in Venezuela. On December 30, 2010, the Venezuelan government announced its intention to eliminate the favorable essential items rate effective January 1, 2011. Our operations in Venezuela generally consist of a service center that both imports equipment and parts from certain of our other locations for resale to third parties within Venezuela and performs service and repair activities. Our Venezuelan subsidiary’s sales for the three months ended March 31, 2011 and 2010 and total assets at March 31, 2011 and 2010 represented approximately 1% or less of our consolidated sales and total assets for the same periods. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        Although approvals by Venezuela’s Commission for the Administration of Foreign Exchange have slowed, we have historically been able to remit dividends and other payments at the official rate, and we currently anticipate doing so in the future. Accordingly, we used the official rate of 4.30 Bolivars to the U.S. dollar for re-measurement of our Venezuelan financial statements into U.S. dollars for all periods presented. As a result of the currency devaluation, we recognized a loss of $12.4 million in the first quarter of 2010. The loss was reported in other income (expense), net in our condensed consolidated statement of income and resulted in no tax benefit. In addition, as a result of settling certain U.S. dollar denominated liabilities relating to essential import items at the 2.60 Bolivars to the U.S. dollar exchange rate, we realized $3.5 million of foreign currency exchange gains during the first quarter of 2010 in other income (expense), net in our condensed consolidated statement of income that resulted in no tax expense. The elimination of the favorable essential items rate, effective January 1, 2011, had no impact on our consolidated financial position or results of operations for the three months ended March 31, 2011. The settlement of certain U.S. dollar denominated liabilities relating to essential import items no longer results in foreign exchange gains in other income (expense), net in our condensed consolidated statement of income. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        We have evaluated the carrying value of related assets and concluded that there is no current impairment. We are continuing to assess and monitor the ongoing impact of the currency devaluation on our Venezuelan operations and imports into the market, including the Venezuelan subsidiary’s ability to remit cash for dividends and other payments at the official rate, the future ability of our imported products to be classified as essential items and the ability to recover exchange losses, as well as further actions of the Venezuelan government and economic conditions in Venezuela that may adversely impact our future consolidated financial condition or results of operations. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Accounting Policies</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        Effective January 1, 2011, we adopted Accounting Standards Update (“ASU”) No. 2009-13, “Revenue Recognition (Accounting Standards Codification (“ASC”) 605): Multiple-Deliverable Revenue Arrangements — a consensus of the Financial Accounting Standards Board (“FASB”) Emerging Issues Task Force,” which resulted in expanded disclosure requirements regarding our revenue recognition policy (see “Revenue Recognition” below). Our adoption of ASU No. 2009-13, effective January 1, 2011, had no impact on our consolidated financial condition or results of operations. Except for the incremental revenue recognition policy disclosure included below, significant accounting policies, for which no other significant changes have occurred in the three months ended March 31, 2011, are detailed in Note 1 to our consolidated financial statements included in our 2010 Annual Report. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Revenue Recognition</i> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        Revenues for product sales are recognized when the risks and rewards of ownership are transferred to the customers, which is typically based on the contractual delivery terms agreed to with the customer and fulfillment of all but inconsequential or perfunctory actions. In addition, our policy requires persuasive evidence of an arrangement, a fixed or determinable sales price and reasonable assurance of collectability. We defer the recognition of revenue when advance payments are received from customers before performance obligations have been completed and/or services have been performed. Freight charges billed to customers are included in sales and the related shipping costs are included in cost of sales in our condensed consolidated statements of income. Our contracts typically include cancellation provisions that require customers to reimburse us for costs incurred up to the date of cancellation, as well as any contractual cancellation penalties. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        We enter into certain contracts with multiple deliverables that may include any combination of designing, developing, manufacturing, modifying, installing and commissioning of flow control equipment and providing services related to the performance of such products. Delivery of these products and services typically occurs within a one to two-year period, although many arrangements, such as “book and ship” type orders, have a shorter timeframe for delivery. We aggregate or separate deliverables into units of accounting based on whether the deliverable(s) have stand-alone value to the customer and when no general right of return exists. Contract value is allocated ratably to the units of accounting in the arrangement based on their relative selling prices determined as if the deliverables were sold separately. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        Revenues for long-term contracts, including separate units of accounting from multiple-deliverable contracts, that exceed certain internal thresholds regarding the size, complexity and duration of the project and provide for the receipt of progress billings from the customer are recorded on the percentage of completion method with progress measured on a cost-to-cost basis. Percentage of completion revenue represented approximately 9% of our consolidated sales for the three months ended March 31, 2011 and 2010. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        Revenue on service and repair contracts is recognized after services have been agreed to by the customer and rendered. Revenues generated under fixed fee service and repair contracts are recognized on a ratable basis over the term of the contract. These contracts can range in duration, but generally extend for up to five years. Revenue on fixed fee service contracts represented less than 1% of our consolidated sales for the three months ended March 31, 2011 and 2010. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        In certain instances, we provide guaranteed completion dates under the terms of our contracts. Failure to meet contractual delivery dates can result in late delivery penalties or non-recoverable costs. In instances where the payment of such costs are deemed to be probable, we perform a project profitability analysis accounting for such costs as a reduction of realizable revenues, which could potentially cause estimated total project costs to exceed projected total revenues realized from the project. In such instances, we would record reserves to cover such excesses in the period they are determined. In circumstances where the total projected reduced revenues still exceed total projected costs, the incurrence of unrealized incentive fees or non-recoverable costs generally reduces profitability of the project at the time of subsequent revenue recognition. Our reported results would change if different estimates were used for contract costs or if different estimates were used for contractual contingencies. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Accounting Developments</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        <b><i>Pronouncements Implemented</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        In January 2010, the FASB issued ASU No. 2010-06, “Fair Value Measurements and Disclosures (ASC 820): Improving Disclosures about Fair Value Measurements,” which requires additional disclosures on transfers in and out of Level I and Level II and on activity for Level III fair value measurements. The new disclosures and clarifications of existing disclosures are effective for interim and annual reporting periods beginning after December 15, 2009, except for the disclosures of Level III activity, which are effective for fiscal years beginning after December 15, 2010 and for interim periods within those fiscal years. Our adoption of the Level I and II disclosure guidance, effective January 1, 2010, and Level III disclosure guidance, effective January 1, 2011, did not have a material impact on our consolidated financial condition or results of operations. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        In September 2009, the FASB issued ASU No. 2009-13, “Revenue Recognition (ASC 605): Multiple-Deliverable Revenue Arrangements — a consensus of the FASB Emerging Issues Task Force,” which addresses the accounting for multiple-deliverable arrangements to enable vendors to account for products or services separately rather than as a combined unit and requires expanded revenue recognition policy disclosures. This amendment addresses how to separate deliverables and how to measure and allocate arrangement consideration to one or more units of accounting. As noted above, our adoption of ASU No. 2009-13, effective January 1, 2011, had no impact on our consolidated financial condition or results of operations. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        In December 2010, the FASB issued ASU No. 2010-28, “Intangibles — Goodwill and Other (ASC 350): When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts — a consensus of the FASB Emerging Issues Task Force,” which modifies Step 1 of the goodwill impairment test for reporting units with zero or negative carrying amounts. This amendment requires an entity to perform Step 2 of the goodwill impairment test if it is more likely than not that a goodwill impairment exists and to consider whether there are any adverse qualitative factors indicating that an impairment may exist. Our adoption of ASU No. 2010-28, effective January 1, 2011, had no impact on our consolidated financial condition or results of operations. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        In December 2010, the FASB issued ASU No. 2010-29, “Business Combinations (ASC 805): Disclosure of Supplementary Pro Forma Information for Business Combinations — a consensus of the FASB Emerging Issues Task Force,” which specifies that if a public entity presents comparative financial statements, the entity should disclose revenue and earnings of the combined entity as though the business combination that occurred during the current year had occurred as of the beginning of the comparable prior annual reporting period only. This amendment also expands the supplemental pro forma disclosures under ASC 805 to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination included in the reported pro forma revenue and earnings. Our adoption of ASU No. 2010-29, effective January 1, 2011, had no material impact on our consolidated financial condition or results of operations. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        <b><i>Pronouncements Not Yet Implemented</i></b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        There have been no pronouncements that have been issued but not yet implemented that we believe will have a material impact on our consolidated financial condition or results of operations. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>2. Acquisition</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><i>Valbart Srl</i> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        As discussed in Note 2 to our consolidated financial statements included in our 2010 Annual Report, effective July 16, 2010, we acquired for inclusion in FCD, Valbart Srl (“Valbart”), a privately-owned Italian valve manufacturer, for $199.4 million, which included $33.8 million of existing Valbart net debt (third party debt less cash on hand) that was repaid at closing. Valbart manufactures trunnion-mounted ball valves used primarily in upstream and midstream oil and gas applications, and its acquisition is intended to improve our ability to provide a more complete valve portfolio to oil and gas projects. Valbart generated approximately €81 million ($104 million, at then-current exchange rates) in sales (unaudited) during its fiscal year ended May 31, 2010. No pro forma information was provided due to immateriality. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>3. Stock-Based Compensation Plans</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        We established the Flowserve Corporation Equity and Incentive Compensation Plan (the “2010 Plan”), effective January 1, 2010. This shareholder-approved plan authorizes the issuance of up to 2,900,000 shares of our common stock in the form of restricted shares, restricted share units and performance-based units (collectively referred to as “Restricted Shares”), incentive stock options, non-statutory stock options, stock appreciation rights and bonus stock. Of the 2,900,000 shares of common stock authorized under the 2010 Plan, 2,428,423 remain available for issuance as of March, 31, 2011. In addition to the 2010 Plan, we also maintain the Flowserve Corporation 2004 Stock Compensation Plan (the “2004 Plan”), which was established on April 21, 2004. The 2004 Plan authorizes the issuance of up to 3,500,000 shares of common stock through grants of Restricted Shares, stock options and other equity-based awards. Of the 3,500,000 shares of common stock authorized under the 2004 Plan, 469,309 remain available for issuance as of March 31, 2011. We recorded stock-based compensation expense of $5.8 million ($8.6 million pre-tax) and $5.6 million ($8.3 million pre-tax) for the three months ended March 31, 2011 and 2010, respectively. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        <i>Stock Options </i>– Information related to stock options issued to officers, other employees and directors under all plans described in Note 5 to our consolidated financial statements included in our 2010 Annual Report is presented in the following table: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="25%"> </td> <td width="2%"> </td> <td width="6%"> </td> <td width="6%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="5%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="8%"> </td> <td width="5%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="15" style="border-bottom: 1px solid #000000"><font style="font-size:10pt"><b>Three Months Ended March 31, 2011</b> </font></td> </tr> <tr style="font-size: 9pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Weighted Average</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Remaining Contractual</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Aggregate Intrinsic</b></td> </tr> <tr style="font-size: 9pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Shares</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Exercise Price</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Life (in years)</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Value (in millions)</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Number of shares under option: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Outstanding - January 1, 2011 </div></td> <td> </td> <td> </td> <td align="right">68,071</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">40.48</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Exercised </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(11,875</td> <td nowrap="nowrap">)  </td> <td> </td> <td> </td> <td align="right">34.59</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Outstanding - March 31, 2011 </div></td> <td> </td> <td> </td> <td align="right">56,196</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">41.72</td> <td> </td> <td> </td> <td> </td> <td align="right">4.3</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">4.9</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Exercisable - March 31, 2011 </div></td> <td> </td> <td> </td> <td align="right">56,196</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">41.72</td> <td> </td> <td> </td> <td> </td> <td align="right">4.3</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">4.9</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        No options were granted during the three months ended March 31, 2011 or 2010. No stock options vested during the three months ended March 31, 2011 or 2010. The fair value of each option award was estimated on the date of grant using the Black-Scholes option pricing model. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        As of March 31, 2011, we had no unrecognized compensation cost related to outstanding stock option awards. The total intrinsic value of stock options exercised during the three months ended March 31, 2011 and 2010 was $1.1 million and $6.0 million, respectively. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        <i>Restricted Shares </i>– Awards of Restricted Shares are valued at the closing market price of our common stock on the date of grant. The unearned compensation is amortized to compensation expense over the vesting period of the restricted shares. We had unearned compensation of $49.6 million and $31.6 million at March 31, 2011 and December 31, 2010, respectively, which is expected to be recognized over a weighted-average period of approximately two years. These amounts will be recognized into net earnings in prospective periods as the awards vest. The total fair value of Restricted Shares vested during the three months ended March 31, 2011 and 2010 was $33.6 million and $29.8 million, respectively. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        The following table summarizes information regarding Restricted Shares: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="57%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="15%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><font style="font-size:10pt"><b>Three Months Ended March 31, 2011</b> </font></td> </tr> <tr style="font-size: 9pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Weighted Average</b></td> </tr> <tr style="font-size: 9pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Grant-Date Fair</b></td> </tr> <tr style="font-size: 9pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Shares</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Value</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Number of unvested Restricted Shares: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Outstanding - January 1, 2011 </div></td> <td> </td> <td> </td> <td align="right">1,259,377</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">77.05</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Granted </div></td> <td> </td> <td> </td> <td align="right">206,017</td> <td> </td> <td> </td> <td> </td> <td align="right">131.04</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Vested </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(381,442</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">88.07</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Cancelled </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(10,523</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">81.49</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:30px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Outstanding - March 31, 2011 </div></td> <td> </td> <td> </td> <td align="right">1,073,429</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">83.45</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        Unvested Restricted Shares outstanding as of March 31, 2011, includes 440,000 units with performance-based vesting provisions. Performance-based units are issuable in common stock and vest upon the achievement of pre-defined performance targets, primarily based on our average annual return on net assets over a three-year period as compared with the same measure for a defined peer group for the same period. Most units were granted in three annual grants since January 1, 2009 and have a vesting percentage between 0% and 200% depending on the achievement of the specific performance targets. Compensation expense is recognized ratably over a cliff vesting period of 36 months, based on the fair market value of our common stock on the date of grant, as adjusted for anticipated forfeitures. During the performance period, earned and unearned compensation expense is adjusted based on changes in the expected achievement of the performance targets. Vesting provisions range from 0 to 855,000 shares based on performance targets. As of March 31, 2011, we estimate vesting of approximately 756,000 shares based on expected achievement of performance targets. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>4. Derivative Instruments and Hedges</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        Our risk management and derivatives policy specifies the conditions under which we may enter into derivative contracts. See Notes 1 and 6 to our consolidated financial statements included in our 2010 Annual Report and Note 7 of this Quarterly Report for additional information on our purpose for entering into derivatives not designated as hedging instruments and our overall risk management strategies. We enter into forward exchange contracts to hedge our cash flow risks associated with transactions denominated in currencies other than the local currency of the operation engaging in the transaction. At March 31, 2011 and December 31, 2010, we had $384.6 million and $358.5 million, respectively, of notional amount in outstanding forward exchange contracts with third parties. At March 31, 2011, the length of forward exchange contracts currently in place ranged from 8 days to 28 months. Also as part of our risk management program, we enter into interest rate swap agreements to hedge exposure to floating interest rates on certain portions of our debt. At March 31, 2011 and December 31, 2010, we had $345.0 million and $350.0 million of notional amount in outstanding interest rate swaps with third parties. All interest rate swaps are highly effective. At March 31, 2011, the maximum remaining length of any interest rate swap contract in place was approximately 36 months. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        We are exposed to risk from credit-related losses resulting from nonperformance by counterparties to our financial instruments. We perform credit evaluations of our counterparties under forward exchange contracts and interest rate swap agreements and expect all counterparties to meet their obligations. If material, we would adjust the values of our derivative contracts for our or our counterparties’ credit risks. We have not experienced credit losses from our counterparties. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        The fair value of forward exchange contracts not designated as hedging instruments are summarized below: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="70%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="11%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="11%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>March 31,</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>December 31,</b></td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><font style="font-size: 8pt">(Amounts in thousands)</font></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Current derivative assets </div></td> <td> </td> <td align="left">  $</td> <td align="right">8,607</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">4,397</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Noncurrent derivative assets </div></td> <td> </td> <td> </td> <td align="right">1,170</td> <td> </td> <td> </td> <td> </td> <td align="right">50</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Current derivative liabilities </div></td> <td> </td> <td> </td> <td align="right">3,367</td> <td> </td> <td> </td> <td> </td> <td align="right">2,949</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Noncurrent derivative liabilities </div></td> <td> </td> <td> </td> <td align="right">39</td> <td> </td> <td> </td> <td> </td> <td align="right">473</td> <td> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        The fair value of interest rate swaps in cash flow hedging relationships are summarized below: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="70%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="11%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="11%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>March 31,</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>December 31,</b></td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><font style="font-size: 8pt">(Amounts in thousands)</font></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Current derivative assets </div></td> <td> </td> <td align="left">  $</td> <td align="right">7</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">-    </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Noncurrent derivative assets </div></td> <td> </td> <td> </td> <td align="right">1,293</td> <td> </td> <td> </td> <td> </td> <td align="right">608</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Current derivative liabilities </div></td> <td> </td> <td> </td> <td align="right">1,436</td> <td> </td> <td> </td> <td> </td> <td align="right">1,232</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Noncurrent derivative liabilities </div></td> <td> </td> <td> </td> <td align="right">105</td> <td> </td> <td> </td> <td> </td> <td align="right">3</td> <td> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        Current and noncurrent derivative assets are reported in our condensed consolidated balance sheets in prepaid expenses and other and other assets, net, respectively. Current and noncurrent derivative liabilities are reported in our condensed consolidated balance sheets in accrued liabilities and retirement obligations and other liabilities, respectively. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        The impact of net changes in the fair values of forward exchange contracts not designated as hedging instruments are summarized below: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="70%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="11%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="11%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Three Months Ended March 31,</b></td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><font style="font-size: 8pt">(Amounts in thousands)</font></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> </tr>   <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Gain (loss) recognized in income </div></td> <td> </td> <td align="left">  $</td> <td align="right">5,575</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">  $</td> <td align="right">(10,032</td> <td nowrap="nowrap">)</td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        The impact of net changes in the fair values of interest rate swaps in cash flow hedging relationships are summarized below: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="70%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="11%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="11%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Three Months Ended March 31,</b></td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><font style="font-size: 8pt">(Amounts in thousands)</font></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> </tr>   <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Loss reclassified from accumulated<br /> other comprehensive income into income <br /> for settlements, net of tax </div></td> <td> </td> <td nowrap="nowrap" align="left">  $</td> <td align="right">(412</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">  $</td> <td align="right">(1,395</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Loss recognized in other <br /> comprehensive income, net of tax </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(164</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(840</td> <td nowrap="nowrap">)</td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        Gains and losses recognized in our condensed consolidated statements of income for forward exchange contracts and interest rate swaps are classified as other income (expense), net, and interest expense, respectively. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>5. Debt</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        Debt, including capital lease obligations, consisted of: </div> <div align="left"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="97%">  <tr valign="bottom"> <td width="70%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>March 31,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><font style="font-size: 8pt">(Amounts in thousands)</font></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Term Loan, interest rate of 2.31% and 2.30% at March 31, 2011 and <br /> December 31, 2010, respectively </div></td> <td> </td> <td align="left">  $</td> <td align="right">493,750</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">500,000</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Capital lease obligations and other borrowings </div></td> <td> </td> <td> </td> <td align="right">31,384</td> <td> </td> <td> </td> <td> </td> <td align="right">27,711</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="line-height: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Debt and capital lease obligations </div></td> <td> </td> <td> </td> <td align="right">525,134</td> <td> </td> <td> </td> <td> </td> <td align="right">527,711</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Less amounts due within one year </div></td> <td> </td> <td> </td> <td align="right">54,277</td> <td> </td> <td> </td> <td> </td> <td align="right">51,481</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total debt due after one year </div></td> <td> </td> <td align="left">  $</td> <td align="right">470,857</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">476,230</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Credit Facilities</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        Our credit facilities are comprised of a $500.0 million term loan facility with a maturity date of December 14, 2015 and a $500.0 million revolving credit facility with a maturity date of December 14, 2015 (collectively referred to as the “Credit Facilities”). The revolving credit facility includes a $300.0 million sublimit for the issuance of letters of credit. Subject to certain conditions, we have the right to increase the amount of the revolving credit facility by an aggregate amount not to exceed $200.0 million. We had outstanding letters of credit of $134.0 million and $133.9 million at March 31, 2011 and December 31, 2010, respectively, which reduced our borrowing capacity to $366.0 million and $366.1 million, respectively. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        Borrowings under our Credit Facilities, other than in respect of swingline loans, bear interest at a rate equal to, at our option, either (1) London Interbank Offered Rate (“LIBOR”) plus 1.75% - 2.50%, as applicable, depending on our consolidated leverage ratio (2) the base rate (which is based on greater of the prime rate most recently announced by the administrative agent under our New Credit Facilities or the Federal Funds rate plus 0.50% or (3) a daily rate equal to the one month LIBOR plus 1.0% plus, as applicable, an applicable margin of 0.75% - 1.50% determined by reference to the ratio of our total debt to consolidated earnings before interest, taxes, depreciation and amortization (“EBITDA”). The applicable interest rate as of March 31, 2011 was 2.31% for borrowings under our Credit Facilities. In connection with our Credit Facilities, we have entered into $345.0 million of notional amount of interest rate swaps at March 31, 2011 to hedge exposure to floating interest rates. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        We may prepay loans under our Credit Facilities in whole or in part, without premium or penalty, at any time. During the three months ended March 31, 2011, we made scheduled repayments under our Credit Facilities of $6.3 million. We have scheduled repayments of $6.3 million due in the each of the next four quarters. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        <i>European Letter of Credit Facilities </i>– On October 30, 2009, we entered into a new 364-day unsecured European Letter of Credit Facility (“New European LOC Facility”) with an initial commitment of €125.0 million. The New European LOC Facility is renewable annually and is used for contingent obligations in respect of surety and performance bonds, bank guarantees and similar obligations with maturities up to five years. We renewed the New European LOC Facility in October 2010 consistent with its terms for an additional 364-day period. We pay fees of 1.35% and 0.40% for utilized and unutilized capacity, respectively, under our New European LOC Facility. We had outstanding letters of credit drawn on the New European LOC Facility of €59.5 million ($84.3 million) and €55.7 million ($74.5 million) as of March 31, 2011 and December 31, 2010, respectively. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        Our ability to issue additional letters of credit under our previous European Letter of Credit Facility (“Old European LOC Facility”), which had a commitment of €110.0 million, expired November 9, 2009. We paid annual and fronting fees of 0.875% and 0.10%, respectively, for letters of credit written against the Old European LOC Facility. We had outstanding letters of credit written against the Old European LOC Facility of €25.6 million ($36.3 million) and €33.3 million ($44.5 million) as of March 31, 2011 and December 31, 2010, respectively. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        Certain banks are parties to both facilities and are managing their exposures on an aggregated basis. As such, the commitment under the New European LOC Facility is reduced by the face amount of existing letters of credit written against the Old European LOC Facility prior to its expiration. These existing letters of credit will remain outstanding, and accordingly offset the €125.0 million capacity of the New European LOC Facility until their maturity, which, as of March 31, 2011, was approximately one year for the majority of the outstanding existing letters of credit. After consideration of outstanding commitments under both facilities, the available capacity under the New European LOC Facility was €107.6 million as of March 31, 2011, of which €59.5 million has been drawn. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>6. Realignment Programs</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        Beginning in 2009, we initiated realignment programs to reduce and optimize certain non-strategic manufacturing facilities and our overall cost structure by improving our operating efficiency, reducing redundancies, maximizing global consistency and driving improved financial performance and expand our efforts to optimize assets, respond to reduced orders and drive an enhanced customer-facing organization (“Realignment Programs”). We currently expect total Realignment Program charges will be approximately $90 million for approved plans, of which $87.2 million has been incurred through March 31, 2011. Total expected realignment charges represent management’s best estimate to date for approved plans. As the execution of certain initiatives are still in process, the amount and nature of actual realignment charges incurred could vary from total expected charges. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        The Realignment Programs consist of both restructuring and non-restructuring charges. Restructuring charges represent costs associated with the relocation of certain business activities, outsourcing of some business activities and facility closures. Non-restructuring charges are costs incurred to improve operating efficiency and reduce redundancies and primarily represent employee severance. Expenses are reported in Cost of Sales (“COS”) or Selling, General & Administrative Expense (“SG&A”), as applicable, in our condensed consolidated statements of income. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        Charges related to our Realignment Programs were $0.8 million and $0.5 million for the three months ended March 31, 2011 and March 31, 2010, respectively. Charges are presented net of adjustments relating to changes in estimates of previously recorded amounts. Net adjustments recorded during the three months ended March 31, 2011 and March 31, 2010 were $1.3 million and $1.4 million, respectively. Due to immateriality, we have not presented detail of types of charges or charges by reportable segment. The restructuring reserve was $3.6 million and $7.1 million at March 31, 2011 and December 31, 2010, respectively. As there was no significant activity related to the restructuring reserve during the three months ended March 31, 2011, we have not presented detail of the activity. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>7. Fair Value</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        Our financial instruments are presented at fair value in our condensed consolidated balance sheets. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied. Assets and liabilities recorded at fair value in our condensed consolidated balance sheets are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Hierarchical levels are directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities. Recurring fair value measurements are limited to investments in derivative instruments and some equity securities. The fair value measurements of our derivative instruments are determined using models that maximize the use of the observable market inputs including interest rate curves and both forward and spot prices for currencies, and are classified as Level II under the fair value hierarchy. The fair values of our derivatives are included above in Note 4. The fair value measurements of our investments in equity securities are determined using quoted market prices. The fair values of our investments in equity securities, and changes thereto, are immaterial to our condensed consolidated financial position and results of operations. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>8. Inventories</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        Certain reclassifications have been made to prior period information to conform to current year presentation. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        Inventories, net consisted of the following: </div> <div align="left"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="97%">  <tr valign="bottom"> <td width="70%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="10%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>March 31,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>December 31,</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><font style="font-size: 8pt">(Amounts in thousands)</font></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Raw materials </div></td> <td> </td> <td align="left">  $</td> <td align="right">302,402</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">265,742</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Work in process </div></td> <td> </td> <td> </td> <td align="right">726,918</td> <td> </td> <td> </td> <td> </td> <td align="right">688,710</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Finished goods </div></td> <td> </td> <td> </td> <td align="right">312,564</td> <td> </td> <td> </td> <td> </td> <td align="right">306,083</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Less: Progress billings </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(249,615</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(305,541</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Less: Excess and obsolete reserve </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(70,826</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(68,263</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Inventories, net </div></td> <td> </td> <td align="left">  $</td> <td align="right">1,021,443</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">886,731</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>9. Equity Method Investments</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        As of March 31, 2011, we had investments in eight joint ventures (one located in each of Japan, Saudi Arabia, South Korea, and the United Arab Emirates and two located in each of China and India) that were accounted for using the equity method. Summarized below is combined income statement information, based on the most recent financial information (unaudited), for those investments: </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="left"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="97%">  <tr valign="bottom"> <td width="74%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Three Months Ended March 31,</b></td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><font style="font-size: 8pt">(Amounts in thousands)</font></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Revenues </div></td> <td> </td> <td align="left">  $</td> <td align="right">79,231</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">61,364</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Gross profit </div></td> <td> </td> <td> </td> <td align="right">27,716</td> <td> </td> <td> </td> <td> </td> <td align="right">22,635</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Income before provision for income taxes </div></td> <td> </td> <td> </td> <td align="right">19,799</td> <td> </td> <td> </td> <td> </td> <td align="right">16,504</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Provision for income taxes </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(6,229</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(4,368</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net income </div></td> <td> </td> <td align="left">  $</td> <td align="right">13,570</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">12,136</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        The provision for income taxes is based on the tax laws and rates in the countries in which our investees operate. The tax jurisdictions vary not only by their nominal rates, but also by the allowability of deductions, credits and other benefits. Our share of net income is reflected in our condensed consolidated statements of income. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>10. Earnings Per Share</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        The following is a reconciliation of net earnings of Flowserve Corporation and weighted average shares for calculating net earnings per common share. Earnings per weighted average common share outstanding was calculated as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="70%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="11%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="11%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Three Months Ended March 31,</b></td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><font style="font-size: 8pt">(Amounts in thousands, except per share data)</font></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Net earnings of Flowserve Corporation </div></td> <td> </td> <td align="left">  $</td> <td align="right">96,982</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">80,220</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Dividends on restricted shares not expected to vest </div></td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> <td> </td> <td> </td> <td align="right">4</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Earnings attributable to common and participating shareholders </div></td> <td> </td> <td align="left">  $</td> <td align="right">96,986</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">80,224</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Weighted average shares: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Common stock </div></td> <td> </td> <td> </td> <td align="right">55,356</td> <td> </td> <td> </td> <td> </td> <td align="right">55,258</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Participating securities </div></td> <td> </td> <td> </td> <td align="right">298</td> <td> </td> <td> </td> <td> </td> <td align="right">378</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Denominator for basic earnings per common share </div></td> <td> </td> <td> </td> <td align="right">55,654</td> <td> </td> <td> </td> <td> </td> <td align="right">55,636</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Effect of potentially dilutive securities </div></td> <td> </td> <td> </td> <td align="right">685</td> <td> </td> <td> </td> <td> </td> <td align="right">864</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Denominator for diluted earnings per common share </div></td> <td> </td> <td> </td> <td align="right">56,339</td> <td> </td> <td> </td> <td> </td> <td align="right">56,500</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Earnings per common share: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Basic </div></td> <td> </td> <td align="left">  $</td> <td align="right">1.74</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">1.44</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Diluted </div></td> <td> </td> <td> </td> <td align="right">1.72</td> <td> </td> <td> </td> <td> </td> <td align="right">1.42</td> <td> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        Diluted earnings per share above is based upon the weighted average number of shares as determined for basic earnings per share plus shares potentially issuable in conjunction with stock options, restricted share units and performance share units. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        For the three months ended both March 31, 2011 and 2010, we had no options to purchase common stock that were excluded from the computation of potentially dilutive securities. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>11. Legal Matters and Contingencies</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Asbestos-Related Claims</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        We are a defendant in a substantial number of lawsuits that seek to recover damages for personal injury allegedly caused by exposure to asbestos-containing products manufactured and/or distributed by our heritage companies in the past. While the overall number of asbestos-related claims has generally declined in recent years, there can be no assurance that this trend will continue, or that the average cost per claim will not further increase. Asbestos-containing materials incorporated into any such products were primarily encapsulated and used as internal components of process equipment, and we do not believe that any significant emission of asbestos fibers occurred during the use of this equipment. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        Our practice is to vigorously contest and resolve these claims, and we have been successful in resolving a majority of claims with little or no payment. Historically, a high percentage of resolved claims have been covered by applicable insurance or indemnities from other companies, and we believe that a substantial majority of existing claims should continue to be covered by insurance or indemnities. Accordingly, we have recorded a liability for our estimate of the most likely settlement of asserted claims and a related receivable from insurers or other companies for our estimated recovery, to the extent we believe that the amounts of recovery are probable and not otherwise in dispute. While unfavorable rulings, judgments or settlement terms regarding these claims could have a material adverse impact on our business, financial condition, results of operations and cash flows, we currently believe the likelihood is remote. In one asbestos insurance related matter, we have a claim in litigation against relevant insurers substantially in excess of the recorded receivable. If our claim is resolved more favorably than reflected in this receivable, we would benefit from a one-time gain in the amount of such excess. We are currently unable to estimate the impact, if any, of unasserted asbestos-related claims, although future claims would also be subject to existing indemnities and insurance coverage. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>United Nations Oil-for-Food Program</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        A French investigation was formally opened in the first quarter of 2010 relating to products that one of our French subsidiaries delivered to Iraq from 1996 through 2003 under the United Nations Oil-for-Food Program. We currently do not expect to incur additional case resolution costs of a material amount in this matter; however, if the French authorities take enforcement action against our French subsidiary regarding its investigation, we may be subject to monetary and non-monetary penalties, which we currently do not believe will have a material adverse effect on our company. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        In addition to the governmental investigation referenced above, on June 27, 2008, the Republic of Iraq filed a civil suit in federal court in New York against 93 participants in the United Nations Oil-for-Food Program, including us and our two foreign subsidiaries that participated in the program. There have been no material developments in this case since it was initially filed. We intend to vigorously contest the suit, and we believe that we have valid defenses to the claims asserted. While we cannot predict the outcome of the suit at the present time, we do not currently believe the resolution of this suit will have a material adverse financial impact on our company. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Export Compliance</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        In March 2006, we initiated a voluntary process to determine our compliance posture with respect to U.S. export control and economic sanctions laws and regulations. Upon initial investigation, it appeared that some product transactions and technology transfers were not handled in full compliance with U.S. export control laws and regulations. As a result, in conjunction with outside counsel, we conducted a voluntary systematic process to further review, validate and voluntarily disclose export violations discovered as part of this review process. We completed our comprehensive disclosures to the appropriate U.S. government regulatory authorities at the end of 2008, and we have continued to work with those authorities to supplement and clarify specific aspects of those disclosures. Based on our review of the data collected, during the self-disclosure period of October 1, 2002 through October 1, 2007, a number of process pumps, valves, mechanical seals and parts related thereto were exported, in limited circumstances, without required export or reexport licenses or without full compliance with all applicable rules and regulations to a number of different countries throughout the world, including certain U.S. sanctioned countries. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        We have taken a number of actions to increase the effectiveness of our global export compliance program. This has included increasing the personnel and resources dedicated to export compliance, providing additional export compliance tools to employees, improving our export transaction screening processes and enhancing the content and frequency of our export compliance training programs. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        Our self-reported violations of U.S. export control laws and regulations are expected to result in civil penalties, including fines and/or other penalties, and we are currently engaged in discussions with U.S. regulators about the final disposition of the case as part of our effort to resolve this matter. We currently do not believe any such penalties will have a material adverse impact on our company, and we believe appropriate reserves have been accrued to address this matter. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Other</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        We are currently involved as a potentially responsible party at five former public waste disposal sites in various stages of evaluation or remediation. The projected cost of remediation at these sites, as well as our alleged “fair share” allocation, will remain uncertain until all studies have been completed and the parties have either negotiated an amicable resolution or the matter has been judicially resolved. At each site, there are many other parties who have similarly been identified. Many of the other parties identified are financially strong and solvent companies that appear able to pay their share of the remediation costs. Based on our information about the waste disposal practices at these sites and the environmental regulatory process in general, we believe that it is likely that ultimate remediation liability costs for each site will be apportioned among all liable parties, including site owners and waste transporters, according to the volumes and/or toxicity of the wastes shown to have been disposed of at the sites. We believe that our exposure for existing disposal sites will not be material. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        We are also a defendant in a number of other lawsuits, including product liability claims, that are insured, subject to the applicable deductibles, arising in the ordinary course of business, and we are also involved in other uninsured routine litigation incidental to our business. We currently believe none of such litigation, either individually or in the aggregate, is material to our business, operations or overall financial condition. However, litigation is inherently unpredictable, and resolutions or dispositions of claims or lawsuits by settlement or otherwise could have an adverse impact on our financial position, results of operations or cash flows for the reporting period in which any such resolution or disposition occurs. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        Although none of the aforementioned potential liabilities can be quantified with absolute certainty except as otherwise indicated above, we have established reserves covering exposures relating to contingencies, to the extent believed to be reasonably estimable and probable based on past experience and available facts. While additional exposures beyond these reserves could exist, they currently cannot be estimated. We will continue to evaluate and update the reserves as necessary and appropriate. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>12. Retirement and Postretirement Benefits</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        Components of the net periodic cost for retirement and postretirement benefits for the three months ended March 31, 2011 and 2010 were as follows: </div> <div align="left"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="98%">  <tr valign="bottom"> <td width="34%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="7%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>U.S.</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Non-U.S.</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7"><b>Postretirement</b></td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000"><font style="font-size: 8pt">(Amounts in millions)</font></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Defined Benefit Plans</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Defined Benefit Plans</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Medical Benefits</b></td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2011</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>2010</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Service cost </div></td> <td> </td> <td align="left">  $</td> <td align="right">5.3</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">5.1</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">1.2</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">1.2</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">-    </td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">-    </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest cost </div></td> <td> </td> <td> </td> <td align="right">4.3</td> <td> </td> <td> </td> <td> </td> <td align="right">4.5</td> <td> </td> <td> </td> <td> </td> <td align="right">3.3</td> <td> </td> <td> </td> <td> </td> <td align="right">3.3</td> <td> </td> <td> </td> <td> </td> <td align="right">0.4</td> <td> </td> <td> </td> <td> </td> <td align="right">0.5</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Expected return on plan assets </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(5.5</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(6.0</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(2.0</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1.9</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">-    </td> <td> </td> <td> </td> <td> </td> <td align="right">-    </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Amortization of unrecognized net loss (gain) </div></td> <td> </td> <td> </td> <td align="right">2.7</td> <td> </td> <td> </td> <td> </td> <td align="right">2.5</td> <td> </td> <td> </td> <td> </td> <td align="right">0.5</td> <td> </td> <td> </td> <td> </td> <td align="right">0.6</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(0.4</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(0.5</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Amortization of prior service benefit </div></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(0.3</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(0.3</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">-    </td> <td> </td> <td> </td> <td> </td> <td align="right">-    </td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(0.4</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(0.5</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Net periodic cost (benefit) recognized </div></td> <td> </td> <td align="left">  $</td> <td align="right">6.5</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">5.8</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">3.0</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">3.2</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">  $</td> <td align="right">(0.4</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">  $</td> <td align="right">(0.5</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td nowrap="nowrap" colspan="3" align="right" style="border-top: 3px double #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        See additional discussion of our retirement and postretirement benefits in Note 12 to our condensed consolidated financial statements included in our 2010 Annual Report. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>13. Shareholders’ Equity</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        On February 21, 2011, our Board of Directors authorized an increase in the payment of quarterly dividends on our common stock from $0.29 per share to $0.32 per share, effective for the first quarter of 2011. On February 22, 2010, our Board of Directors authorized an increase in our quarterly cash dividend from $0.27 per share to $0.29 per share, effective for the first quarter of 2010. Generally, our dividend date-of-record is in the last month of the quarter, and the dividend is paid the following month. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        On February 26, 2008, our Board of Directors authorized a program to repurchase up to $300.0 million of our outstanding common stock over an unspecified time period, and the program commenced in the second quarter of 2008. We repurchased 112,500 shares for $13.8 million and 112,500 shares for $12.0 million during the three months ended March 31, 2011 and 2010, respectively. To date, we have repurchased a total of 2,848,100 shares for $265.7 million under this program. </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>14. Income Taxes</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        For the three months ended March 31, 2011, we earned $130.6 million before taxes and provided for income taxes of $33.6 million, resulting in an effective tax rate of 25.7%. The effective tax rate varied from the U.S. federal statutory rate for the three months ended March 31, 2011 primarily due to the net impact of foreign operations and the lapse of the statute of limitations in certain jurisdictions. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        For the three months ended March 31, 2010, we earned $112.0 million before taxes and provided for income taxes of $31.8 million, resulting in an effective tax rate of 28.4%. The effective tax rate varied from the U.S. federal statutory rate for the three months ended March 31, 2010 primarily due to the net impact of foreign operations. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        As of March 31, 2011, the amount of unrecognized tax benefits has increased by $1.2 million from December 31, 2010, due to the net impacts of currency translation adjustments, expiration of statutes and audit settlements. With limited exception, we are no longer subject to U.S. federal, state and local income tax audits for years through 2006 or non-U.S. income tax audits for years through 2003. We are currently under examination for various years in Austria, Germany, India, Singapore, the U.S. and Venezuela. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div style="margin-right: 2%"> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        It is reasonably possible that within the next 12 months the effective tax rate will be impacted by the resolution of some or all of the matters audited by various taxing authorities. It is also reasonably possible that we will have the statute of limitations close in various taxing jurisdictions within the next 12 months. As such, we estimate we could record a reduction in our tax expense of between $5.5 million and $18.0 million within the next 12 months. </div> </div> </div>

<div style="font-family: 'Times New Roman',Times,serif"> <div style="margin-right: 2%"> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>15. Segment Information</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        We are principally engaged in the worldwide design, manufacture, distribution and service of industrial flow management equipment. We provide long lead-time, highly engineered pumps, standardized, general purpose pumps, mechanical seals, industrial valves and related automation products and solutions primarily for oil and gas, chemical, power generation, water management and other general industries requiring flow management products and services. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        We conduct our operations through three business segments based on type of product and how we manage the business: </div> <div style="margin-top: 10pt"> <table width="98%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="5%" style="background: transparent"> </td> <td width="2%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify">Flow Solutions Group (“FSG”) Engineered Product Division (“EPD”) for long lead-time, engineered pumps and pump systems, mechanical seals, auxiliary systems and replacement parts and related services; </div></td> </tr> </table> </div> <div style="margin-top: 10pt"> <table width="98%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="5%" style="background: transparent"> </td> <td width="2%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify">FSG Industrial Product Division (“IPD”) for pre-configured pumps and pump systems and related products and services; and </div></td> </tr> </table> </div> <div style="margin-top: 10pt"> <table width="98%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="5%" style="background: transparent"> </td> <td width="2%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td> <div style="text-align: justify">FCD for engineered and industrial valves, control valves, actuators and controls and related services. </div></td> </tr> </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        The President of FSG reports directly to the Chief Executive Officer (“CEO”) and the FSG Vice President – Finance reports directly to our Chief Accounting Officer (“CAO”). The structure of FSG consists of two reportable operating segments: EPD and IPD. FCD has a President, who reports directly to our CEO, and a Vice President – Finance, who reports directly to our CAO. For decision-making purposes, our CEO and other members of senior executive management use financial information generated and reported at the reportable segment level. Our corporate headquarters does not constitute a separate division or business segment. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        We evaluate segment performance and allocate resources based on each reportable segment’s operating income. Amounts classified as “Eliminations and All Other” include corporate headquarters costs and other minor entities that do not constitute separate segments. Intersegment sales and transfers are recorded at cost plus a profit margin, with the sales and related margin on such sales eliminated in consolidation. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">        The following is a summary of the financial information of the reportable segments reconciled to the amounts reported in the condensed consolidated financial statements: </div> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Three Months Ended March 31, 2011</b> </div> <div align="center"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="34%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Subtotal –</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Eliminations</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Flow Solutions Group</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Reportable</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>and All</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Consolidated</b></td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000; font-size: 8pt">(Amounts in thousands)</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>EPD</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>IPD</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>FCD</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Segments</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Other</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Total</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Sales to external customers </div></td> <td> </td> <td align="left">  $</td> <td align="right">499,760</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">160,912</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">336,535</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">997,207</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">-    </td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">997,207</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Intersegment sales </div></td> <td> </td> <td> </td> <td align="right">24,011</td> <td> </td> <td> </td> <td> </td> <td align="right">15,413</td> <td> </td> <td> </td> <td> </td> <td align="right">1,062</td> <td> </td> <td> </td> <td> </td> <td align="right">40,486</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(40,486</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">-    </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Segment operating income </div></td> <td> </td> <td> </td> <td align="right">91,756</td> <td> </td> <td> </td> <td> </td> <td align="right">13,076</td> <td> </td> <td> </td> <td> </td> <td align="right">47,534</td> <td> </td> <td> </td> <td> </td> <td align="right">152,366</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(22,113</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">130,253</td> <td> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Three Months Ended March 31, 2010</b> </div> <div align="center"> <table style="font-size: 9pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="34%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Subtotal –</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Eliminations</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td style="border-bottom: 1px solid #000000"> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000"><b>Flow Solutions Group</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Reportable</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>and All</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3"><b>Consolidated</b></td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 0px solid #000000; font-size: 8pt">(Amounts in thousands)</td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>EPD</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>IPD</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>FCD</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Segments</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Other</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="3" style="border-bottom: 1px solid #000000"><b>Total</b></td> </tr>   <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Sales to external customers </div></td> <td> </td> <td align="left">  $</td> <td align="right">517,095</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">187,072</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">254,739</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">958,906</td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">-    </td> <td> </td> <td> </td> <td align="left">  $</td> <td align="right">958,906</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Intersegment sales </div></td> <td> </td> <td> </td> <td align="right">14,731</td> <td> </td> <td> </td> <td> </td> <td align="right">9,063</td> <td> </td> <td> </td> <td> </td> <td align="right">1,323</td> <td> </td> <td> </td> <td> </td> <td align="right">25,117</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(25,117</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">-    </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Segment operating income </div></td> <td> </td> <td> </td> <td align="right">102,370</td> <td> </td> <td> </td> <td> </td> <td align="right">20,968</td> <td> </td> <td> </td> <td> </td> <td align="right">40,075</td> <td> </td> <td> </td> <td> </td> <td align="right">163,413</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(21,239</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td align="right">142,174</td> <td> </td> </tr>  </table> </div> </div>

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