FLOWSERVE CORPORATION CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY Total Flowserve Corporation Shareholders’ Equity Capital in Excess of Par Value Retained Earnings Deferred Compensation Obligation Accumulated Other Comprehensive Loss Total Equity Common Stock Treasury Stock Noncontrolling Interests Shares Amount Shares Amount (Amounts in thousands) Balance, as reported — January 1, 2017 176,793 $ 220,991 $ 488,882 $ 3,601,362 (46,980 ) $ (2,078,527 ) $ 8,507 $ (624,788 ) $ 20,961 $ 1,637,388 Stock activity under stock plans — — (23,479) — 509 18,969 — — — (4,510) Stock-based compensation — — 22,820 — — — — — — 22,820 Tax benefit associated with stock-based compensation — — 103 — — — — — — 103 Net earnings — — — 2,652 — — — — 1,676 4,328 Cash dividends declared — — — (100,067) — — — — — (100,067) Other comprehensive income, net of tax — — — — — — — 119,315 438 119,753 Other, net — — — — — — (2,153) — (6,708) (8,861) Balance — December 31, 2017 176,793 220,991 488,326 3,503,947 (46,471 ) (2,059,558 ) 6,354 (505,473 ) 16,367 1,670,954 ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) — — — 19,642 — — — — — 19,642 Stock activity under stock plans — — (13,687 ) — 234 10,154 — — — (3,533 ) Stock-based compensation — — 19,912 — — — — — — 19,912 Net earnings — — — 119,671 — — — — 5,379 125,050 Cash dividends declared — — — (100,253) — — — — — (100,253) Other comprehensive loss, net of tax — — — — — — — (68,474 ) 668 (67,806 ) Other, net — — — — — — 763 — (3,949) (3,186) Balance — December 31, 2018 176,793 $ 220,991 $ 494,551 $ 3,543,007 (46,237 ) $ (2,049,404 ) $ 7,117 $ (573,947 ) $ 18,465 $ 1,660,780 Stock activity under stock plans — — (17,388) — 300 12,821 1,217 — — (3,350) Stock-based compensation — — 23,882 — — — — — — 23,882 Net earnings — — — 253,668 — — — — 8,112 261,780 Cash dividends declared — — — (100,813 ) — — — — — (100,813 ) Repurchases of common shares — — — — (325) (15,000) — — — (15,000) Other comprehensive loss, net of tax — — — — — — — (10,345 ) 579 (9,766 ) Other, net — — — — — — — — (1,554) (1,554) Balance — December 31, 2019 176,793 $ 220,991 $ 501,045 $ 3,695,862 (46,262 ) $ (2,051,583 ) $ 8,334 $ (584,292 ) $ 25,602 $ 1,815,959 See accompanying notes to consolidated financial statements. 55