FLOWSERVE CORPORATION CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY Total Flowserve Corporation Shareholders’ Equity See accompanying notes to consolidated financial statements. 59 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, 2016 176,793 $ 220,991 $ 494,961 $ 3,565,958 (47,703 ) $ (2,106,785 ) $ 10,233 $ (538,232 ) $ 17,256 $ 1,664,382 Stock activity under stock plans — — (33,571) — 723 28,258 — — — (5,313) Stock-based compensation — — 30,203 10 — — — — — 30,213 Tax benefit associated with stock-based compensation — — 255 — — — — — — 255 Net earnings — — — 132,455 — — — — 3,077 135,532 Cash dividends declared — — — (100,027) — — — — — (100,027) Other comprehensive loss, net of tax — — — — — — — (86,556 ) 713 (85,843 ) Purchase of shares from and dividends paid to noncontrolling interests — — — — — — — — (85) (85) Other, net — — — — — — (1,726 ) — — (1,726 ) Balance — December 31, 2016 176,793 220,991 491,848 3,598,396 (46,980) (2,078,527) 8,507 (624,788) 20,961 1,637,388 ASU No. 2016-09, Compensation - Stock — — (2,966 ) 2,966 — — — — — — 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 Purchase of shares from and dividends paid to noncontrolling interests — — — — — — — — (6,708) (6,708) Other, net — — — — — — (2,153 ) — — (2,153 ) 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 Tax benefit associated with stock-based compensation — — — — — — — — — — 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 ) Purchase of shares from and dividends paid to noncontrolling interests — — — — — — — — (3,949) (3,949) Other, net — — — — — — 763 — — 763 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