Revenues. Revenues increased by $58.6 million, or approximately 6.7%, to $931.0 million in 2014 from $872.4 million in 2013. Product revenues increased by approximately $41.6 million for the year ended December 31, 2014 compared to the same period in 2013 as a result of increased revenues of $37.9 million in subsea equipment and an increase of $4.3 million in offshore rig equipment, partially offset by decreases of $0.6 million in surface equipment. The increase in subsea equipment revenue was primarily due to increased revenues of $24.1 million in subsea equipment in the U.S. Gulf of Mexico as numerous subsea equipment orders were completed and shipped. Product revenues increased in the Western Hemisphere by $10.2 million, $19.1 million in the Eastern Hemisphere and in Asia-Pacific by $12.3 million. Service revenues increased by approximately $17.0 million resulting from increased service revenues in the Western Hemisphere of $2.2 million, $13.1 million in the Eastern Hemisphere and $1.7 million in Asia-Pacific. The majority of the increases in service revenues related to increased technical advisory assistance services and rental of the Company’s running and installation tools. Cost of Sales. Cost of sales decreased by $0.4 million, or less than 1.0%, to $513.5 million for 2014 from $513.9 million for the same period in 2013. As a percentage of revenues, cost of sales were approximately 55.2% in 2014 and 58.9% in 2013. Cost of sales as a percentage of revenue decreased in 2014 primarily due to pricing increases and changes in the product mix. Selling, General and Administrative Expenses. For 2014, selling, general and administrative expenses decreased by approximately $2.0 million, or 2.1%, to $92.8 million from $94.8 million in 2013. The decrease in selling, general and administrative expenses was primarily due to foreign currency translation gains of $4.5 million in 2014 as compared to losses of $6.0 million in 2013. The gains were partially offset by an increase in stock-based compensation expense of $11.9 million in 2014 as compared to $8.9 million in 2013. Personnel and related expenses totaled $86.0 million for 2014 as compared to $79.3 million for 2013. Selling, general and administrative expenses as a percentage of revenues were 10.0% in 2014 and 10.9% in 2013. Engineering and Product Development Expenses. For 2014, engineering and product development expenses increased by approximately $5.8 million, or 14.5%, to $45.9 million from $40.1 million in 2013. The increase was primarily due to additional personnel required to meet the demands of the backlog related to long-term projects. Engineering and product development expenses as a percentage of revenues increased to 4.9% in 2014 from 4.6% in 2013. Income tax provision . Income tax expense for 2014 was $70.7 million on income before taxes of $279.4 million, resulting in an effective income tax rate of approximately 25.3%. Income tax expense in 2013 was $54.3 million on income before taxes of $224.1 million, resulting in an effective tax rate of approximately 24.2%. The increase in the effective income tax rate reflects the $1.2 million Research and Development tax credit from the “American Taxpayer Relief Act of 2012” recognized on the 2012 U.S. income tax return, but not recorded until 2013 for financial statement purposes in accordance with GAAP. Also contributing to the increased tax rate is the difference in income tax rates between the Company’s three geographic areas, which have different income tax rates. Net Income. Net income was approximately $208.7 million in 2014 and $169.8 million in 2013 for the reasons set forth above. Revenues. Revenues increased by $139.4 million, or approximately 19.0%, to $872.4 million in 2013 from $733.0 million in 2012. Product revenues increased by approximately $121.4 million for the year ended December 31, 2013 compared to the same period in 2012 as a result of increased revenues of $127.9 million in subsea equipment, partially offset by decreases of $2.7 million in surface equipment and $3.8 million in offshore rig equipment. The increase in subsea equipment revenue was primarily due to increased revenues of $91.2 million in subsea equipment in the U.S. Gulf of Mexico as numerous subsea equipment orders were 34 Year Ended December 31, 2014 Compared to Year Ended December 31, 2013 Year ended December 31, 2013 Compared to Year Ended December 31, 2012