Year Ended December 31, 2014 2013 2012 (In thousands, except per share data) Revenues: Products ................................................... $773,205 $731,617 $610,218 Services ................................................... 157,752 140,755 122,813 Total revenues .......................................... 930,957 872,372 733,031 Cost and expenses: Cost of sales: Products ................................................... 428,125 436,359 384,513 Services ................................................... 85,402 77,547 67,153 Total cost of sales ........................................ 513,527 513,906 451,666 Selling, general and administrative .................................. 92,762 94,806 82,218 Engineering and product development ................................ 45,920 40,115 37,455 Total costs and expenses .................................. 652,209 648,827 571,339 Operating income ................................................ 278,748 223,545 161,692 Interest income .................................................. 667 587 462 Interest expense ................................................. (35) (35) (32) Income before income taxes ........................................ 279,380 224,097 162,122 Income tax provision ............................................. 70,668 54,270 42,913 Net income ..................................................... $208,712 $169,827 $119,209 Earnings per common share: Basic ...................................................... $ 5.22 $ 4.18 $ 2.96 Diluted .................................................... $ 5.19 $ 4.16 $ 2.94 Weighted average common shares outstanding: Basic ...................................................... 39,964 40,648 40,332 Diluted .................................................... 40,190 40,865 40,523 The accompanying notes are an integral part of these consolidated financial statements. 46 DRIL-QUIP, INC. CONSOLIDATED STATEMENTS OF INCOME