Earnings Per Share

9 Months Ended

Sep. 30, 2011

10. Earnings Per Share

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:


	Three Months Ended September 30,
(Amounts in thousands, except per share data)	2011		2010
Net earnings of Flowserve Corporation	$	107,771	$	103,919
Dividends on restricted shares not expected to vest		4		4

Earnings attributable to common and participating shareholders	$	107,775	$	103,923


Weighted average shares:
Common stock		55,381		55,499
Participating securities		262		311

Denominator for basic earnings per common share		55,643		55,810
Effect of potentially dilutive securities		518		576

Denominator for diluted earnings per common share		56,161		56,386


Earnings per common share:
Basic	$	1.94	$	1.86
Diluted		1.92		1.84

	Nine Months Ended September 30,
(Amounts in thousands, except per share data)	2011		2010
Net earnings of Flowserve Corporation	$	303,484	$	275,787
Dividends on restricted shares not expected to vest		11		12

Earnings attributable to common and participating shareholders	$	303,495	$	275,799


Weighted average shares:
Common stock		55,407		55,448
Participating securities		275		338

Denominator for basic earnings per common share		55,682		55,786
Effect of potentially dilutive securities		565		667

Denominator for diluted earnings per common share		56,247		56,453


Earnings per common share:
Basic	$	5.45	$	4.94
Diluted		5.40		4.89

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.

For the three and nine months ended both September 30, 2011 and 2010, no options to purchase common stock were excluded from the computation of potentially dilutive securities.