FLOWSERVE CORPORATION CONSOLIDATED STATEMENTS OF INCOME Year Ended December 31, 2019 2018 2017 (Amounts in thousands, except per share data) Sales $ 3,944,850 $ 3,832,666 $ 3,660,831 Cost of sales (2,649,480) (2,644,830) (2,571,878) Gross profit 1,295,370 1,187,836 1,088,953 Selling, general and administrative expense (899,813) (943,714) (901,727) Gain (loss) on sale of businesses — (7,727 ) 141,317 Net earnings from affiliates 10,483 11,143 12,592 Operating income 406,040 247,538 341,135 Interest expense (54,980) (58,160) (59,730) Interest income 8,409 6,465 3,429 Other income (expense), net (17,619) (19,569) (21,827) Earnings before income taxes 341,850 176,274 263,007 Provision for income taxes (80,070) (51,224) (258,679) Net earnings, including noncontrolling interests 261,780 125,050 4,328 Less: Net earnings attributable to noncontrolling interests (8,112) (5,379) (1,676) Net earnings attributable to Flowserve Corporation $ 253,668 $ 119,671 $ 2,652 Net earnings per share attributable to Flowserve Corporation common shareholders: Basic $ 1.94 $ 0.91 $ 0.02 Diluted 1.93 0.91 0.02 See accompanying notes to consolidated financial statements. 53