ITEM 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

(All amounts are in millions)

The following should be read in conjunction with our consolidated financial statements and the related notes.

Executive Overview

Our financial results for 2011 were mixed, as our Flow Technology reportable segment experienced organic revenue growth and increases in income and margins, while our Thermal Equipment and Services reportable segment and Industrial Products and Services had only minimal organic revenue growth and declines in income and margins. On a consolidated basis, revenues increased 10.6%, of which 6.5% was due to organic growth, while income for our reportable and other operating segments totaled $520.0 in 2011, compared to $533.4 in 2010. Operating results for 2011 were impacted favorably by growth across all the Flow Technology reportable segment's end markets (i.e., food and beverage, power and energy, and general industrial). Our Thermal Equipment and Services reportable segment was impacted negatively by continued delay in the recovery of late cycle power markets in the United States and Europe and a significant decline in sales of high-margin dry cooling products in China. The pricing of power transformers within Industrial Products and Services generally remained at depressed levels, impacting recovery in 2011.

Cash flows from continuing operations totaled $251.4 in 2011 compared to $218.3 in 2010. The 2011 figure included payments of $34.6 relating to the settlement of currency protection agreements entered into as hedges of the purchase price of the Clyde Union acquisition, which was paid in British Pounds ("GBP"). The 2010 figure included $100.0 of voluntary contributions to our domestic pension plans.

Other matters of note, including significant items that impacted our 2011 financial performance, are as follows: