DRIL-QUIP, INC. CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY The accompanying notes are an integral part of these consolidated financial statements. 50 Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total (In thousands) Balance at December 31, 2011 ............. $402 $ 162,505 $ 780,780 $(18,443) $ 925,244 Foreign currency translation adjustment ...................... — — — 4,613 4,613 Net income ........................ — — 119,209 — 119,209 Comprehensive income .............. — — — — 123,822 Options exercised (299,635 shares) ..... 3 10,806 — — 10,809 Stock-based compensation ............ — 5,748 — — 5,748 Excess tax benefits—stock options and awards ......................... — 809 809 Balance at December 31, 2012 ............. 405 179,868 899,989 (13,830) 1,066,432 Foreign currency translation adjustment ...................... — — — (6,340) (6,340) Net income ........................ — — 169,827 — 169,827 Comprehensive income .............. — — — — 163,487 Options exercised and awards vested (284,653 shares) .................. 3 10,503 — — 10,506 Stock-based compensation ............ — 8,900 — — 8,900 Excess tax benefits—stock options and awards ......................... — 2,695 — — 2,695 Treasury stock (85,840 shares) ........ (1) (10,001) — — (10,002) Balance at December 31, 2013 ............. 407 191,965 1,069,816 (20,170) 1,242,018 Foreign currency translation adjustment ...................... (30,034) (30,034) Net income ........................ 208,712 208,712 Comprehensive income .............. 178,678 Options exercised and awards vested (48,523 shares) ................... 1 2,848 2,849 Stock-based compensation ............ 11,856 11,856 Excess tax benefits—stock options and awards ......................... 25 25 Treasury stock (2,023,172 shares) ...... (20) (190,214) (190,234) Balance at December 31, 2014 ............. $388 $ 16,480 $1,278,528 $(50,204) $1,245,192