Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Nov. 07, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | SEITEL INC | |
Entity Central Index Key | 750,813 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 100 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 60,874 | $ 52,675 |
Receivables | ||
Trade, net of allowance for doubtful accounts of $228 and $267, respectively | 6,167 | 14,830 |
Notes and other | 3,538 | 1,318 |
Due from Seitel Holdings, Inc. | 1,175 | 1,156 |
Seismic data library, net of accumulated amortization of $1,168,969 and $1,098,398, respectively | 128,089 | 161,363 |
Property and equipment, net of accumulated depreciation and amortization of $16,295 and $15,147, respectively | 1,913 | 2,603 |
Prepaid expenses, deferred charges and other | 2,512 | 2,183 |
Intangible assets, net of accumulated amortization of $47,166 and $43,232, respectively | 2,462 | 5,528 |
Goodwill | 183,771 | 179,792 |
Deferred income taxes | 71 | 39 |
TOTAL ASSETS | 390,572 | 421,487 |
LIABILITIES | ||
Accounts payable and accrued liabilities | 23,261 | 23,650 |
Income taxes payable | 173 | 0 |
Senior Notes | 246,556 | 245,696 |
Obligations under capital leases | 1,599 | 1,661 |
Deferred revenue | 18,673 | 25,903 |
Deferred income taxes | 1,002 | 2,361 |
TOTAL LIABILITIES | 291,264 | 299,271 |
COMMITMENTS AND CONTINGENCIES (Note H) | ||
STOCKHOLDER'S EQUITY | ||
Common stock, par value $.001 per share; 100 shares authorized, issued and outstanding | 0 | 0 |
Additional paid-in capital | 400,564 | 400,505 |
Retained deficit | (287,308) | (258,766) |
Accumulated other comprehensive loss | (13,948) | (19,523) |
TOTAL STOCKHOLDER'S EQUITY | 99,308 | 122,216 |
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ 390,572 | $ 421,487 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Trade, allowance for doubtful accounts | $ 228 | $ 267 |
Notes and other, allowance for doubtful accounts | 0 | 0 |
Seismic data library, accumulated amortization | 1,168,969 | 1,098,398 |
Property and equipment, accumulated depreciation and amortization | 16,295 | 15,147 |
Intangible assets, accumulated amortization | $ 47,166 | $ 43,232 |
Common stock, par value per share (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100 | 100 |
Common stock, shares issued (in shares) | 100 | 100 |
Common stock, shares outstanding (in shares) | 100 | 100 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
REVENUE | $ 23,255 | $ 31,242 | $ 59,545 | $ 86,290 |
EXPENSES: | ||||
Depreciation and amortization | 18,933 | 24,627 | 58,839 | 68,114 |
Cost of sales | 22 | 37 | 55 | 164 |
Selling, general and administrative | 5,386 | 5,293 | 16,013 | 17,150 |
Total operating expenses | 24,341 | 29,957 | 74,907 | 85,428 |
INCOME (LOSS) FROM OPERATIONS | (1,086) | 1,285 | (15,362) | 862 |
Interest expense, net | (6,298) | (6,381) | (18,988) | (19,020) |
Foreign currency exchange gains (losses) | (20) | (138) | 143 | (1,559) |
Other income | 572 | 0 | 582 | 5 |
Loss before income taxes | (6,832) | (5,234) | (33,625) | (19,712) |
Benefit for income taxes | (1,389) | (1,179) | (5,083) | (5,735) |
NET LOSS | $ (5,443) | $ (4,055) | $ (28,542) | $ (13,977) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (5,443) | $ (4,055) | $ (28,542) | $ (13,977) |
Foreign currency translation adjustments | (861) | (8,255) | 5,575 | (17,717) |
Comprehensive loss | $ (6,304) | $ (12,310) | $ (22,967) | $ (31,694) |
Condensed Consolidated Stateme6
Condensed Consolidated Statement Of Stockholder's Equity - 9 months ended Sep. 30, 2016 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Deficit [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance at Dec. 31, 2015 | $ 122,216 | $ 0 | $ 400,505 | $ (258,766) | $ (19,523) |
Balance, shares at Dec. 31, 2015 | 100 | 100 | |||
Increase (Decrease) in Stockholder's Equity [Roll Forward] | |||||
Amortization of stock-based compensation costs | 59 | ||||
Net loss | $ (28,542) | (28,542) | |||
Foreign currency translation adjustments | 5,575 | 5,575 | |||
Balance at Sep. 30, 2016 | $ 99,308 | $ 0 | $ 400,564 | $ (287,308) | $ (13,948) |
Balance, shares at Sep. 30, 2016 | 100 | 100 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Reconciliation of net loss to net cash provided by operating activities: | ||
Net loss | $ (28,542) | $ (13,977) |
Depreciation and amortization | 58,839 | 68,114 |
Deferred income tax benefit | (5,127) | (5,704) |
Foreign currency exchange losses (gains) | (143) | 1,559 |
Amortization of deferred financing costs | 922 | 889 |
Amortization of stock-based compensation | 59 | 264 |
Decrease in allowance for doubtful accounts | (21) | 0 |
Gain on sale of property and equipment | (7) | 0 |
Non-cash other income | (572) | 0 |
Non-cash revenue | (2,713) | (6,805) |
Decrease in receivables | 6,508 | 33,923 |
Decrease in other assets | 424 | 265 |
Decrease in deferred revenue | (7,244) | (14,035) |
Increase in accounts payable and other liabilities | 6,748 | 3,236 |
Net cash provided by operating activities | 29,131 | 67,729 |
Cash flows from investing activities: | ||
Cash invested in seismic data | (20,699) | (61,218) |
Cash paid to acquire property and equipment | (176) | (406) |
Cash from sale of property and equipment | 18 | 0 |
Advances to Seitel Holdings, Inc. | (19) | (10) |
Net cash used in investing activities | (20,876) | (61,634) |
Cash flows from financing activities: | ||
Principal payments on capital lease obligations | (152) | (168) |
Net cash used in financing activities | (152) | (168) |
Effect of exchange rate changes | 96 | (1,128) |
Net increase in cash and cash equivalents | 8,199 | 4,799 |
Cash and cash equivalents at beginning of period | 52,675 | 59,175 |
Cash and cash equivalents at end of period | 60,874 | 63,974 |
Supplemental disclosure of cash flow information: | ||
Interest | 12,195 | 12,230 |
Income taxes, net of refunds received | (7) | (122) |
Supplemental schedule of non-cash investing and financing activities: | ||
Additions to seismic data library | $ 2,640 | $ 7,959 |
Basis Of Presentation
Basis Of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis Of Presentation | BASIS OF PRESENTATION The accompanying condensed consolidated financial statements of Seitel, Inc. and its subsidiaries (collectively, the “Company”) have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. In preparing the Company’s financial statements, a number of estimates and assumptions are made by management that affect the accounting for and recognition of assets, liabilities, revenues and expenses. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . The condensed consolidated balance sheet of the Company as of December 31, 2015 has been derived from the audited balance sheet of the Company as of that date. These financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 . Effective January 1, 2016, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The new standard changed the presentation of debt issuance costs from an asset to a direct deduction from the related liability. The Company applied the provisions of the new standard retrospectively, which resulted in a decrease of $4.3 million in prepaid expenses, deferred charges and other assets and Senior Notes liability amounts in the consolidated balance sheet as of December 31, 2015. Other than the reclassification of the December 31, 2015 amount, the adoption of this standard did not have an impact on the Company’s consolidated Statements of Operations or Statements of Cash Flows. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2016 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Revenue from Data Acquisition The Company generates revenue when it creates a new seismic survey that is initially licensed by one or more of its customers to use the resulting data. The payments for the initial licenses are sometimes referred to as acquisition underwriting or prefunding. Customers make periodic payments throughout the creation period, which generally correspond to costs incurred and work performed. These payments are non-refundable. Contracts which are signed up to the time the Company makes a firm commitment to create the new seismic survey are considered acquisition underwriting. Any subsequent licensing of the data while the survey is in progress or once it is completed is considered a resale license (see “Revenue from Non-Exclusive Data Licenses”). Acquisition underwriting revenue is recognized throughout the creation period using the proportional performance method based upon costs incurred and work performed to date as a percentage of total estimated costs and work required. Management believes that this method is the most reliable and representative measure of progress for its data creation projects. On average, the duration of the data creation process is approximately one year. Under these contracts, the Company creates new seismic data designed in conjunction with its customers and specifically suited to the geology of the area using the most appropriate technology available. The Company outsources the substantial majority of the work required to complete data acquisition projects to third party contractors. The Company’s payments to these third party contractors comprise the substantial majority of the total estimated costs of the projects and are paid throughout the creation period. A typical survey includes specific activities required to complete the survey, each of which has value to the customers. Typical activities, that often occur concurrently, include: • permitting for land access, mineral rights, and regulatory approval; • surveying; • drilling for the placement of energy sources; • recording the data in the field; and • processing the data. The customers paying for the initial licenses receive legally enforceable rights to any resulting product of each activity described above. The customers also receive access to and use of the newly acquired, processed data. The customers’ access to and use of the results of the work performed and of the newly acquired, processed data is governed by a master license agreement, which is a separate agreement from the acquisition contract. The Company’s acquisition contracts require the customer either to have a master license agreement in place or to execute one at the time the acquisition contract is signed. The Company typically maintains sole ownership of the newly acquired data, which is added to its library, and is free to license the data to other customers. Revenue from Non-Exclusive Data Licenses The Company recognizes a substantial portion of its revenue from licensing of data once it is available for delivery. This revenue is sometimes referred to as resale licensing revenue, late sales or shelf sales. These sales fall under the following four basic forms of non-exclusive license contracts. • Specific license contract—The customer licenses and selects specific data from the data library, including data currently in progress, at the time the contract is entered into and holds this license for a long-term period. • Library card license contract—The customer initially receives only access to certain data. The customer may then select specific data, from the collection of data to which it has access, to hold long-term under its license agreement. The length of the selection periods under the library card contracts is limited in time and varies from customer to customer. • Review and possession license contract—The customer obtains the right to review a certain quantity of data for a limited period of time. During the review period, the customer may select specific data from that available for review to hold long-term under its license agreement. Any data not selected for long-term licensing must be returned to the Company at the end of the review period. • Review only license contract—The customer obtains rights to review a certain quantity of data for a limited period of time, but does not obtain the right to select specific data to hold long-term. The Company’s non-exclusive license contracts specify the following: • that all customers must also have in place or execute a master license agreement that governs the use of all data received under the Company’s non-exclusive license contracts; • the specific payment terms, generally ranging from 30 days to 12 months, and that such payments are non-cancelable and non-refundable; • the actual data that is accessible to the customer; and • that the data is licensed in its present form, as is, where is, and that the Company is under no obligation to make any enhancements, modifications or additions to the data unless specific terms to the contrary are included. Revenue from the non-exclusive licensing of seismic data is recognized when the following criteria are met: • the Company has an agreement with the customer that is validated by a signed contract; • the sales price is fixed and determinable; • collection is reasonably assured; • the customer has selected the specific data or the contract has expired without full selection; • the data is currently available for delivery; and • the license term has begun. Copies of the licensed data are available to the customer immediately upon request. For licenses that have been invoiced for which payment is due or has been received, but that have not met the aforementioned criteria, revenue is deferred along with the related direct costs (primarily consisting of sales commissions). This normally occurs under the library card, review and possession or review only license contracts because the data selection may occur over time. Additionally, if the contract allows licensing of data that is not currently available or enhancements, modifications or additions to the data are required per the contract, revenue is deferred until such time that the data is available. Revenue from Non-Monetary Exchanges In certain cases, the Company will take ownership of a customer’s seismic data or revenue interest (collectively referred to as “data”) in exchange for a non-exclusive license to selected seismic data from the Company’s library and, in some cases, services provided by Seitel Solutions (“Solutions”). In connection with specific data acquisition contracts, the Company may choose to receive both cash and ownership of seismic data from the customer as consideration for the underwriting of new data acquisition. In addition, the Company may receive advanced data processing services on selected existing data in exchange for a non-exclusive license to selected data from the Company’s library. These exchanges are referred to as non-monetary exchanges. A non-monetary exchange for data always complies with the following criteria: • the data license delivered is always distinct from the data received; • the customer forfeits ownership of its data; and • the Company retains ownership in its data. In non-monetary exchange transactions, the Company records a data library asset for the seismic data received or processed at the time the contract is entered into or the data is completed, as applicable, and recognizes revenue on the transaction in equal value in accordance with its policy on revenue from data licenses or data acquisition, or as services are provided by Solutions, as applicable. The data license to the customer is in the form of one of the four basic forms of contracts discussed above. These transactions are valued at the fair value of the data received or the fair value of the license granted or services provided, whichever is more readily determinable. Fair value of the data exchanged is determined using a multi-step process as follows: • First, the Company considers the value of the data or services received from the customer. In determining the value of the data received, the Company considers the age, quality, current demand and future marketability of the data and, in the case of 3D seismic data, the cost that would be required to create the data. In addition, the Company applies a limitation on the value it assigns per square mile on the data received. In determining the value of the services received, the Company considers the cost of such similar services that it could obtain from a third-party provider. • Second, the Company determines the value of the license granted to the customer. Typically, the range of cash transactions by the Company for licenses of similar data during the prior six months are evaluated. In evaluating the range of cash transactions, the Company does not consider transactions that are disproportionately high or low. Due to the Company’s revenue recognition policies, revenue recognized on non-monetary exchange transactions may not occur at the same time the seismic data acquired is recorded as an asset. The activity related to non-monetary exchanges was as follows (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Seismic data library additions $ 1,618 $ 37 $ 2,640 $ 7,959 Revenue recognized on specific data licenses or selections of data 1,295 913 2,635 6,626 Revenue recognized related to acquisition contracts 54 2 78 166 Revenue recognized related to Solutions — 13 — 13 Revenue from Solutions Revenue from Solutions is recognized as the services for reproduction and delivery of seismic data are provided to customers. |
Seismic Data Library
Seismic Data Library | 9 Months Ended |
Sep. 30, 2016 | |
Seismic Data Library [Abstract] | |
Seismic Data Library | SEISMIC DATA LIBRARY The Company’s seismic data library consists of seismic surveys that are offered for license to customers on a non-exclusive basis. Costs associated with creating, acquiring or purchasing the seismic data library are capitalized and amortized principally on the income forecast method subject to a straight-line amortization period of four years , applied on a quarterly basis at the individual survey level. Costs of Seismic Data Library For purchased seismic data, the Company capitalizes the purchase price of the acquired data. For data received through a non-monetary exchange, the Company capitalizes an amount equal to the fair value of the data received by the Company or the fair value of the license granted or services provided to the customer, whichever is more readily determinable. See Note B – “Revenue Recognition – Revenue from Non-Monetary Exchanges” for discussion of the process used to determine fair value. For newly created data, the capitalized costs include costs paid to third parties for the acquisition of data and related permitting, surveying and other activities associated with the data creation activity. In addition, the Company capitalizes certain internal costs related to processing the created data and reprocessing existing data. Such costs include salaries and benefits of the Company’s processing personnel and certain other costs incurred for the benefit of the processing activity. The Company believes that the internal processing costs capitalized are not greater than, and generally are less than, those that would be incurred and capitalized if such activity were performed by a third party. Capitalized costs for internal data processing were $0.7 million and $1.0 million for the three months ended September 30, 2016 and 2015 , respectively, and $2.3 million and $2.7 million for the nine months ended September 30, 2016 and 2015, respectively. Data Library Amortization The Company amortizes each survey in its seismic data library using the greater of the amortization that would result from the application of the income forecast method to each survey’s revenue, subject to a minimum amortization rate, or a straight-line basis over four years, commencing at the time such survey is completed and available for licensing to customers on a non-exclusive basis. The Company applies the income forecast method by forecasting the ultimate revenue expected to be derived from a particular data library component over the estimated useful life of each survey comprising part of such component. This forecast is made by the Company annually and reviewed quarterly. If, during any such review, the Company determines that the ultimate revenue for a library component is expected to be significantly different than the most recent estimate of total revenue for such library component, the Company revises the amortization rate attributable to future revenue from each survey in such component. The Company applies a minimum amortization rate of 70% . In addition, in connection with the forecast reviews and updates, the Company evaluates the recoverability of its seismic data library investment, and if required, records an impairment charge with respect to such investment. See discussion on “Seismic Data Library Impairment” below. The greater of the income forecast or straight-line amortization policy is applied quarterly on a cumulative basis at the individual survey level. Under this policy, the Company first records amortization using the income forecast method. The cumulative amortization recorded for each survey is then compared with the cumulative straight-line amortization. If the cumulative straight-line amortization is higher for any specific survey, additional amortization expense is recorded, resulting in accumulated amortization being equal to the cumulative straight-line amortization for such survey. This requirement is applied regardless of future-year revenue estimates for the library component of which the survey is a part and does not consider the existence of deferred revenue with respect to the library component or to any survey. The actual aggregate rate of amortization depends on the specific seismic surveys licensed and selected by the Company’s customers during the period and the amount of straight-line amortization recorded. The income forecast amortization rates can vary by component and, as of October 1, 2016 , is 70% for all components. For those seismic surveys which have been fully amortized, no amortization expense is required on revenue recorded. Seismic Data Library Impairment The Company evaluates its seismic data library investment by grouping individual surveys into components based on its operations and geological and geographical trends, resulting in the following data library segments for purposes of evaluating impairments: (I) North America 3D onshore comprised of the following components: (a) Texas Gulf Coast, (b) Eastern Texas, (c) Permian, (d) Anadarko Basin in North Texas/Oklahoma, (e) Southern Louisiana/Mississippi, (f) Northern Louisiana, (g) Rocky Mountains, (h) Utica/Marcellus in Pennsylvania, Ohio and West Virginia, (i) other United States, (j) Montney in British Columbia and Alberta, (k) Horn River in British Columbia, (l) Cardium in Alberta and (m) other Canada; (II) United States 2D; (III) Canada 2D; (IV) Mexico; (V) Gulf of Mexico offshore; and (VI) international data outside North America. The Company believes that these library components constitute the lowest levels of independently identifiable cash flows. The Company evaluates its seismic data library investment for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. The Company considers the level of sales performance in each component compared to projected sales, as well as industry conditions, among others, to be key factors in determining when its seismic data investment should be evaluated for impairment. In evaluating sales performance of each component, the Company generally considers five consecutive quarters of actual performance below forecasted sales to be an indicator of potential impairment. The impairment evaluation is based first on a comparison of the undiscounted future cash flows over each component’s remaining estimated useful life with the carrying value of each library component. If the undiscounted cash flows are equal to or greater than the carrying value of such component, no impairment is recorded. If undiscounted cash flows are less than the carrying value of any component, the forecast of future cash flows related to such component is discounted to fair value and compared with such component’s carrying amount. The difference between the library component’s carrying amount and the discounted future value of the expected revenue stream is recorded as an impairment charge. For purposes of evaluating potential impairment losses, the Company estimates the future cash flows attributable to a library component by evaluating, among other factors, historical and recent revenue trends, oil and gas prospectivity in particular regions, general economic conditions affecting its customer base and expected changes in technology and other factors that the Company deems relevant. The cash flow estimates exclude expected future revenues attributable to non-monetary data exchanges and future data creation projects. The estimation of future cash flows and fair value is highly subjective and inherently imprecise. Estimates can change materially from period to period based on many factors, including those described in the preceding paragraph. Accordingly, if conditions change in the future, the Company may record impairment losses relative to its seismic data library investment, which could be material to any particular reporting period. The Company did not have any impairment charges during the nine months ended September 30, 2016 or 2015 . |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The following is the detail of income tax benefit recorded for the three and nine months ended September 30, 2016 (in thousands): Three Months Nine Months Current operations $ (2,217 ) $ (11,160 ) Change in unrecognized tax benefits (864 ) (2,865 ) Change in valuation allowance 1,692 8,942 Income tax benefit $ (1,389 ) $ (5,083 ) For the three and nine months ended September 30, 2016 , the Company provided a full valuation allowance against the federal tax benefit generated from its U.S. operations as it was more likely than not that such benefit would not be realized. For the same periods, the Company recognized the tax benefits generated from its Canadian operations. During the first nine months of 2016, the Company settled its outstanding appeal with Canada Revenue Agency related to certain royalty payments made to the Company’s U.S. entities for years 2003 to 2007 and a domestic audit for the years 2011 and 2012. As a result of these settlements, the Company recorded a tax benefit of $0.3 million and $2.4 million for the three and nine months ended September 30, 2016, respectively. The Company also recognized a $0.6 million tax benefit in the three and nine months ended September 30, 2016 due to a lapse in statute of limitations on previously unrecognized positions. The $2.9 million tax benefit recorded in the nine months ended September 30, 2016 also includes $0.1 million of additional interest expense on uncertain tax positions. The Company believes that it is reasonably possible that a decrease of up to $0.2 million in unrecognized tax benefits may be necessary within the coming year due to a lapse in statute of limitations. Such a decrease in unrecognized tax benefits would also have a $0.2 million impact on the tax provision, which would affect the effective tax rate. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The following is a summary of the Company’s debt (in thousands): September 30, December 31, 9½% Senior Notes $ 250,000 $ 250,000 Credit Facility — — 250,000 250,000 Less: unamortized debt issuance costs (3,444 ) (4,304 ) $ 246,556 $ 245,696 9½% Senior Unsecured Notes: On March 20, 2013, the Company issued, in a private placement, $250.0 million aggregate principal amount of 9½% senior notes (the “9½% Senior Notes”). As required by their terms, the 9½% Senior Notes were exchanged for senior notes of like amounts and terms in a publicly registered exchange offer in August 2013. The 9½% Senior Notes mature on April 15, 2019. Interest is payable in cash, semi-annually on April 15 and October 15 of each year. The 9½% Senior Notes are unsecured and are jointly and severally guaranteed by substantially all of the Company’s significant domestic subsidiaries on a senior basis. The 9½% Senior Notes contain restrictive covenants which limit the Company’s ability to, among other things, incur additional indebtedness, incur liens, pay dividends and make other restricted payments, engage in transactions with affiliates, and complete mergers, acquisitions and sales of assets. From time to time on or before April 15, 2016, the Company was entitled to redeem up to 35% of the aggregate principal amount of the 9½% Senior Notes with the net proceeds of equity offerings at a redemption price equal to 109.50% of the principal amount, plus accrued and unpaid interest. The Company did not exercise this redemption option before it expired. Upon a change of control (as defined in the indenture), each holder of the 9½% Senior Notes will have the right to require the Company to offer to purchase all of such holder's notes at a price equal to 101% of the principal amount, plus accrued and unpaid interest. Credit Facility: On May 25, 2011, the Company entered into a credit agreement (the “Credit Facility”) with Wells Fargo Capital Finance, LLC and Wells Fargo Capital Finance Corporation Canada. The Credit Facility provided a $30.0 million revolving credit facility with a Canadian sublimit of $5.0 million (Canadian), subject to borrowing base limitations based on the Company’s seismic data assets and eligible accounts receivable, each as defined in the Credit Facility, calculated on a monthly basis. The Credit Facility expired on its own terms in May 2016 and the Company decided not to extend or renew the Credit Facility. No amounts were outstanding at the maturity date. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS Authoritative guidance on fair value measurements provides a framework for measuring fair value and establishes a fair value hierarchy that prioritizes the inputs used to measure fair value, giving the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and the lowest priority to unobservable inputs (Level 3 inputs). The Company uses valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. In measuring the fair value of the Company’s assets and liabilities, market data or assumptions are used that the Company believes market participants would use in pricing an asset or liability, including assumptions about risk when appropriate. The Company’s assets that are measured at fair value on a recurring basis include the following (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) At September 30, 2016: Cash equivalents $ 60,675 $ 60,675 $ — $ — At December 31, 2015: Cash equivalents $ 52,421 $ 52,421 $ — $ — The Company had no transfers of assets between any of the above levels during the nine months ended September 30, 2016 or 2015 . Cash equivalents include treasury bills and money market funds that invest in United States government obligations and a Canadian dollar investment account, all with original maturities of three months or less. The original costs of these assets approximate fair value due to their short-term maturities. Other Financial Instruments : At September 30, 2016 , the carrying value of the Company’s debt was $246.6 million , net of $3.4 million of unamortized debt issuance costs. At December 31, 2015, the carrying value was $245.7 million , net of $4.3 million of unamortized debt issuance costs. The estimated fair value of the debt was approximately $208.8 million at September 30, 2016 and $152.5 million at December 31, 2015. The fair value of the Company’s 9½% Senior Notes is based on quoted market prices (Level 1 inputs). |
Statement Of Cash Flow Informat
Statement Of Cash Flow Information | 9 Months Ended |
Sep. 30, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Statement Of Cash Flow Information | STATEMENT OF CASH FLOW INFORMATION Cash and cash equivalents at September 30, 2016 and December 31, 2015 included $0.5 million of restricted cash related to collateral on seismic operations bonds. The balance at December 31, 2015 also included $125,000 (Canadian) of restricted cash posted as security against Company issued credit cards. Income taxes paid during the nine months ended September 30, 2016 and September 30, 2015 were $1.5 million and $0.3 million , respectively. During the first nine months of 2016 and 2015, the Company received income tax refunds of $1.5 million and $0.4 million , respectively. The Company had non-cash additions to its seismic data library comprised of the following (in thousands): Nine Months Ended 2016 2015 Non-monetary exchanges related to resale licensing revenue $ 1,840 $ 7,948 Non-monetary exchanges from underwriting of new data acquisition 408 — Adjustment to prior year non-monetary exchange from underwriting of new data acquisition — (2 ) Non-monetary exchanges related to data processing and reproduction services 392 13 Total non-cash additions to seismic data library $ 2,640 $ 7,959 Non-cash revenue consisted of the following (in thousands): Nine Months Ended 2016 2015 Acquisition revenue on underwriting from non-monetary exchange contracts $ 78 $ 166 Licensing revenue from specific data licenses and selections on non-monetary exchange contracts 2,635 6,626 Solutions revenue recognized from non-monetary exchange contracts — 13 Total non-cash revenue $ 2,713 $ 6,805 |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES The Company is involved from time to time in ordinary, routine claims and lawsuits incidental to its business. In the opinion of management, uninsured losses, if any, resulting from the ultimate resolution of these matters should not be material to the Company’s financial position, results of operations or cash flows. However, it is not possible to predict or determine the outcomes of the legal actions brought against it or by it, or to provide an estimate of all additional losses, if any, that may arise. At September 30, 2016 , the Company has recorded the estimated amount of potential exposure it may have with respect to claims. Such amounts are not material to the financial statements. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The objective of the ASU is to establish a single comprehensive model in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle of the guidance is that an entity recognizes revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also significantly expands disclosure requirements concerning revenues for most entities. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” which deferred the effective date of ASU 2014-09 by one year. In March 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” , amending the principal-versus-agent implementation guidance set forth in ASU 2014-09. Among other things, ASU 2016-08 clarifies that an entity should evaluate whether it is the principal or the agent for each specified good or service promised in a contract with a customer. In April 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”, which amends certain aspects of the guidance related to identifying performance obligations and licensing implementation. In May 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” to address certain issues in the guidance on assessing collectibility, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. The Company is required to adopt the guidance set forth by these ASUs on January 1, 2018. Early application is permitted, but not before January 1, 2017. Entities have the option of using either a full retrospective or modified approach to adopt the new guidance. The Company anticipates adopting the new revenue recognition guidance effective January 1, 2018 and is currently evaluating the method of adoption and the effect on its consolidated financial statements and financial statement disclosures. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” with the objective of increasing transparency and comparability among organizations by requiring lessees to recognize assets and liabilities on the balance sheet for the present value of the rights and obligations created by all leases with terms of more than 12 months. The ASU will also require disclosures designed to give financial statement users information on the amount, timing and uncertainty of cash flows arising from leases. The amendments in this ASU are to be applied using a modified retrospective approach and will be effective for the Company as of January 1, 2019, but early adoption is permitted. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” The amendments in this ASU simplify several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. This guidance is effective on January 1, 2017, with early adoption permitted. Adoption of ASU 2016-09 will not have a material effect on the Company's consolidated financial statements. |
Supplemental Guarantors Consoli
Supplemental Guarantors Consolidating Condensed Financial Information | 9 Months Ended |
Sep. 30, 2016 | |
Supplemental Guarantors Consolidating Condensed Financial Information [Abstract] | |
Supplemental Guarantors Consolidating Condensed Financial Information | SUPPLEMENTAL GUARANTORS CONSOLIDATING CONDENSED FINANCIAL INFORMATION On March 20, 2013, the Company completed a private placement of 9½% Senior Notes in the aggregate principal amount of $250.0 million . The Company’s payment obligations under the 9½% Senior Notes are jointly and severally guaranteed by substantially all of the Company’s significant 100% owned U.S. subsidiaries (“Guarantor Subsidiaries”). All subsidiaries of the Company that do not guarantee the 9½% Senior Notes are referred to as Non-Guarantor Subsidiaries. The indenture governing the 9½% Senior Notes provides that the guarantees by the Guarantor Subsidiaries will be released in the following customary circumstances: (i) upon a sale or other disposition, whether by merger, consolidation or otherwise, of the equity interests of that guarantor to a person that is not the Company or a restricted subsidiary of the Company; (ii) the guarantor sells all or substantially all of its assets to a person that is not the Company or a restricted subsidiary of the Company; (iii) the guarantor is properly designated as an unrestricted subsidiary or ceases to be a restricted subsidiary; (iv) upon legal defeasance of the 9½% Senior Notes or satisfaction and discharge of the indenture governing the 9½% Senior Notes; (v) the guarantor becomes an immaterial subsidiary or (vi) the guarantor, having also been a guarantor under a credit facility, is released from its guarantee obligations under a credit facility and does not guarantee any indebtedness of the Company or the Guarantor Subsidiaries. The consolidating condensed financial statements are presented below and should be read in connection with the condensed consolidated financial statements of the Company. Separate financial statements of the Guarantor Subsidiaries are not presented because (i) the Guarantor Subsidiaries are wholly-owned and have fully and unconditionally guaranteed the 9½% Senior Notes on a joint and several basis and (ii) the Company’s management has determined such separate financial statements are not material to investors. The following consolidating condensed financial information presents the consolidating condensed balance sheets as of September 30, 2016 and December 31, 2015 , and the consolidating condensed statements of operations, statements of comprehensive income (loss) for the three and nine months ended September 30, 2016 and September 30, 2015 and consolidating condensed statements of cash flows for the nine months ended September 30, 2016 and September 30, 2015 of (a) the Company; (b) the Guarantor Subsidiaries; (c) the Non-Guarantor Subsidiaries; (d) elimination entries; and (e) the Company, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries on a consolidated basis. Investments in subsidiaries are accounted for under the equity method. The principal elimination entries eliminate investments in subsidiaries, intercompany balances, intercompany transactions and intercompany sales. CONSOLIDATING CONDENSED BALANCE SHEET As of September 30, 2016 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total ASSETS Cash and cash equivalents $ — $ 54,959 $ 5,915 $ — $ 60,874 Receivables Trade, net — 4,836 1,331 — 6,167 Notes and other — 14 3,524 — 3,538 Due from Seitel Holdings, Inc. — 1,175 — — 1,175 Intercompany receivables (payables) (40,279 ) 41,740 (1,461 ) — — Investment in subsidiaries 410,049 416,236 633 (826,918 ) — Net seismic data library — 101,903 26,224 (38 ) 128,089 Net property and equipment — 733 1,180 — 1,913 Prepaid expenses, deferred charges and other 89 2,052 371 — 2,512 Intangible assets, net 900 1,205 357 — 2,462 Goodwill — 107,688 76,083 — 183,771 Deferred income taxes — 71 — — 71 TOTAL ASSETS $ 370,759 $ 732,612 $ 114,157 $ (826,956 ) $ 390,572 LIABILITIES AND STOCKHOLDER’S EQUITY LIABILITIES Accounts payable and accrued liabilities $ 10,947 $ 8,345 $ 3,969 $ — $ 23,261 Income taxes payable — — 173 — 173 Senior Notes 246,556 — — — 246,556 Obligations under capital leases — — 1,599 — 1,599 Deferred revenue — 16,254 2,419 — 18,673 Deferred income taxes — — 1,002 — 1,002 TOTAL LIABILITIES 257,503 24,599 9,162 — 291,264 STOCKHOLDER’S EQUITY Common stock — — — — — Additional paid-in capital 400,564 — — — 400,564 Parent investment — 764,105 156,518 (920,623 ) — Retained deficit (287,308 ) (56,092 ) (37,335 ) 93,427 (287,308 ) Accumulated other comprehensive loss — — (14,188 ) 240 (13,948 ) TOTAL STOCKHOLDER’S EQUITY 113,256 708,013 104,995 (826,956 ) 99,308 TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY $ 370,759 $ 732,612 $ 114,157 $ (826,956 ) $ 390,572 CONSOLIDATING CONDENSED BALANCE SHEET As of December 31, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total ASSETS Cash and cash equivalents $ — $ 51,192 $ 1,483 $ — $ 52,675 Receivables Trade, net — 12,459 2,371 — 14,830 Notes and other — 3 1,315 — 1,318 Due from Seitel Holdings, Inc. — 1,156 — — 1,156 Intercompany receivables (payables) (29,144 ) 31,537 (2,393 ) — — Investment in subsidiaries 420,547 419,499 692 (840,738 ) — Net seismic data library — 125,253 36,180 (70 ) 161,363 Net property and equipment — 1,273 1,330 — 2,603 Prepaid expenses, deferred charges and other 139 1,737 307 — 2,183 Intangible assets, net 900 3,613 1,015 — 5,528 Goodwill — 107,688 72,104 — 179,792 Deferred income taxes — 39 — — 39 TOTAL ASSETS $ 392,442 $ 755,449 $ 114,404 $ (840,808 ) $ 421,487 LIABILITIES AND STOCKHOLDER’S EQUITY LIABILITIES Accounts payable and accrued liabilities $ 5,007 $ 13,253 $ 5,390 $ — $ 23,650 Senior Notes 245,696 — — — 245,696 Obligations under capital leases — — 1,661 — 1,661 Deferred revenue — 23,525 2,378 — 25,903 Deferred income taxes — — 2,361 — 2,361 TOTAL LIABILITIES 250,703 36,778 11,790 — 299,271 STOCKHOLDER’S EQUITY Common stock — — — — — Additional paid-in capital 400,505 — — — 400,505 Parent investment — 764,105 156,395 (920,500 ) — Retained deficit (258,766 ) (45,434 ) (34,102 ) 79,536 (258,766 ) Accumulated other comprehensive loss — — (19,679 ) 156 (19,523 ) TOTAL STOCKHOLDER’S EQUITY 141,739 718,671 102,614 (840,808 ) 122,216 TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY $ 392,442 $ 755,449 $ 114,404 $ (840,808 ) $ 421,487 CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS For the Three Months Ended September 30, 2016 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total REVENUE $ — $ 20,017 $ 3,557 $ (319 ) $ 23,255 EXPENSES: Depreciation and amortization — 15,071 3,875 (13 ) 18,933 Cost of sales — 19 1 2 22 Selling, general and administrative 315 3,799 1,593 (321 ) 5,386 315 18,889 5,469 (332 ) 24,341 INCOME (LOSS) FROM OPERATIONS (315 ) 1,128 (1,912 ) 13 (1,086 ) Interest expense, net (5,732 ) (497 ) (69 ) — (6,298 ) Foreign currency exchange losses — — (20 ) — (20 ) Other income — 572 — — 572 Income (loss) before income taxes and equity in income (loss) of subsidiaries (6,047 ) 1,203 (2,001 ) 13 (6,832 ) Provision (benefit) for income taxes — 22 (1,411 ) — (1,389 ) Equity in income (loss) of subsidiaries 604 (590 ) — (14 ) — NET INCOME (LOSS) $ (5,443 ) $ 591 $ (590 ) $ (1 ) $ (5,443 ) CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS) For the Three Months Ended September 30, 2016 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Net income (loss) $ (5,443 ) $ 591 $ (590 ) $ (1 ) $ (5,443 ) Foreign currency translation adjustments — — (862 ) 1 (861 ) Comprehensive income (loss) $ (5,443 ) $ 591 $ (1,452 ) $ — $ (6,304 ) CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS For the Three Months Ended September 30, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total REVENUE $ — $ 28,145 $ 3,427 $ (330 ) $ 31,242 EXPENSES: Depreciation and amortization — 18,754 5,885 (12 ) 24,627 Cost of sales — 22 15 — 37 Selling, general and administrative 232 3,833 1,558 (330 ) 5,293 232 22,609 7,458 (342 ) 29,957 INCOME (LOSS) FROM OPERATIONS (232 ) 5,536 (4,031 ) 12 1,285 Interest expense, net (5,563 ) (714 ) (104 ) — (6,381 ) Foreign currency exchange losses — — (138 ) — (138 ) Income (loss) before income taxes and equity in loss of subsidiaries (5,795 ) 4,822 (4,273 ) 12 (5,234 ) Provision (benefit) for income taxes (1,937 ) 1,820 (1,062 ) — (1,179 ) Equity in loss of subsidiaries (197 ) (3,211 ) — 3,408 — NET LOSS $ (4,055 ) $ (209 ) $ (3,211 ) $ 3,420 $ (4,055 ) CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE LOSS For the Three Months Ended September 30, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Net loss $ (4,055 ) $ (209 ) $ (3,211 ) $ 3,420 $ (4,055 ) Foreign currency translation adjustments — — (8,262 ) 7 (8,255 ) Comprehensive loss $ (4,055 ) $ (209 ) $ (11,473 ) $ 3,427 $ (12,310 ) CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS For the Nine Months Ended September 30, 2016 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total REVENUE $ — $ 49,297 $ 11,279 $ (1,031 ) $ 59,545 EXPENSES: Depreciation and amortization — 44,237 14,640 (38 ) 58,839 Cost of sales — 96 13 (54 ) 55 Selling, general and administrative 888 11,256 4,846 (977 ) 16,013 888 55,589 19,499 (1,069 ) 74,907 LOSS FROM OPERATIONS (888 ) (6,292 ) (8,220 ) 38 (15,362 ) Interest expense, net (17,034 ) (1,703 ) (251 ) — (18,988 ) Foreign currency exchange gains — — 143 — 143 Other income — 581 1 — 582 Loss before income taxes and equity in loss of subsidiaries (17,922 ) (7,414 ) (8,327 ) 38 (33,625 ) Provision (benefit) for income taxes — 11 (5,094 ) — (5,083 ) Equity in loss of subsidiaries (10,620 ) (3,233 ) — 13,853 — NET LOSS $ (28,542 ) $ (10,658 ) $ (3,233 ) $ 13,891 $ (28,542 ) CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS) For the Nine Months Ended September 30, 2016 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Net loss $ (28,542 ) $ (10,658 ) $ (3,233 ) $ 13,891 $ (28,542 ) Foreign currency translation adjustments — — 5,491 84 5,575 Comprehensive income (loss) $ (28,542 ) $ (10,658 ) $ 2,258 $ 13,975 $ (22,967 ) CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS For the Nine Months Ended September 30, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total REVENUE $ — $ 61,413 $ 25,868 $ (991 ) $ 86,290 EXPENSES: Depreciation and amortization — 44,180 23,972 (38 ) 68,114 Cost of sales — 109 55 — 164 Selling, general and administrative 807 11,933 5,401 (991 ) 17,150 807 56,222 29,428 (1,029 ) 85,428 INCOME (LOSS) FROM OPERATIONS (807 ) 5,191 (3,560 ) 38 862 Interest expense, net (16,597 ) (2,125 ) (298 ) — (19,020 ) Foreign currency exchange losses — (3 ) (1,556 ) — (1,559 ) Other income — 5 — — 5 Income (loss) before income taxes and equity in loss of subsidiaries (17,404 ) 3,068 (5,414 ) 38 (19,712 ) Provision (benefit) for income taxes (5,869 ) 1,242 (1,108 ) — (5,735 ) Equity in loss of subsidiaries (2,442 ) (4,306 ) — 6,748 — NET LOSS $ (13,977 ) $ (2,480 ) $ (4,306 ) $ 6,786 $ (13,977 ) CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE LOSS For the Nine Months Ended September 30, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Net loss $ (13,977 ) $ (2,480 ) $ (4,306 ) $ 6,786 $ (13,977 ) Foreign currency translation adjustments — — (17,852 ) 135 (17,717 ) Comprehensive loss $ (13,977 ) $ (2,480 ) $ (22,158 ) $ 6,921 $ (31,694 ) CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS For the Nine Months Ended September 30, 2016 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Cash flows from operating activities: Net cash provided by (used in) operating activities $ (12,525 ) $ 35,409 $ 6,247 $ — $ 29,131 Cash flows from investing activities: Cash invested in seismic data — (19,141 ) (1,558 ) — (20,699 ) Cash paid to acquire property and equipment — (173 ) (3 ) — (176 ) Cash from sale of property and equipment — 17 1 — 18 Advances to Seitel Holdings, Inc. — (19 ) — — (19 ) Net cash used in investing activities — (19,316 ) (1,560 ) — (20,876 ) Cash flows from financing activities: Principal payments on capital lease obligations — — (152 ) — (152 ) Intercompany transfers 12,525 (12,326 ) (199 ) — — Net cash provided by (used in) financing activities 12,525 (12,326 ) (351 ) — (152 ) Effect of exchange rate changes — — 96 — 96 Net increase in cash and cash equivalents — 3,767 4,432 — 8,199 Cash and cash equivalents at beginning of period — 51,192 1,483 — 52,675 Cash and cash equivalents at end of period $ — $ 54,959 $ 5,915 $ — $ 60,874 CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS For the Nine Months Ended September 30, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Cash flows from operating activities: Net cash provided by (used in) operating activities $ (12,797 ) $ 64,937 $ 15,589 $ — $ 67,729 Cash flows from investing activities: Cash invested in seismic data — (49,153 ) (12,065 ) — (61,218 ) Cash paid to acquire property and equipment — (396 ) (10 ) — (406 ) Advances to Seitel Holdings, Inc. — (10 ) — — (10 ) Net cash used in investing activities — (49,559 ) (12,075 ) — (61,634 ) Cash flows from financing activities: Principal payments on capital lease obligations — (18 ) (150 ) — (168 ) Intercompany transfers 12,797 (1,797 ) (11,000 ) — — Net cash provided by (used in) financing activities 12,797 (1,815 ) (11,150 ) — (168 ) Effect of exchange rate changes — (3 ) (1,125 ) — (1,128 ) Net increase (decrease) in cash and cash equivalents — 13,560 (8,761 ) — 4,799 Cash and cash equivalents at beginning of period — 48,525 10,650 — 59,175 Cash and cash equivalents at end of period $ — $ 62,085 $ 1,889 $ — $ 63,974 |
Basis Of Presentation Organizat
Basis Of Presentation Organization, Consolidation and Presentation of Financial Statements (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying condensed consolidated financial statements of Seitel, Inc. and its subsidiaries (collectively, the “Company”) have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions of Regulation S-X. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. In preparing the Company’s financial statements, a number of estimates and assumptions are made by management that affect the accounting for and recognition of assets, liabilities, revenues and expenses. Operating results for the three and nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . The condensed consolidated balance sheet of the Company as of December 31, 2015 has been derived from the audited balance sheet of the Company as of that date. These financial statements should be read in conjunction with the financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 . Effective January 1, 2016, the Company adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) No. 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.” The new standard changed the presentation of debt issuance costs from an asset to a direct deduction from the related liability. The Company applied the provisions of the new standard retrospectively, which resulted in a decrease of $4.3 million in prepaid expenses, deferred charges and other assets and Senior Notes liability amounts in the consolidated balance sheet as of December 31, 2015. Other than the reclassification of the December 31, 2015 amount, the adoption of this standard did not have an impact on the Company’s consolidated Statements of Operations or Statements of Cash Flows. |
Use of Estimates and Assumptions | In preparing the Company’s financial statements, a number of estimates and assumptions are made by management that affect the accounting for and recognition of assets, liabilities, revenues and expenses. |
Revenue Recognition | Revenue from Data Acquisition The Company generates revenue when it creates a new seismic survey that is initially licensed by one or more of its customers to use the resulting data. The payments for the initial licenses are sometimes referred to as acquisition underwriting or prefunding. Customers make periodic payments throughout the creation period, which generally correspond to costs incurred and work performed. These payments are non-refundable. Contracts which are signed up to the time the Company makes a firm commitment to create the new seismic survey are considered acquisition underwriting. Any subsequent licensing of the data while the survey is in progress or once it is completed is considered a resale license (see “Revenue from Non-Exclusive Data Licenses”). Acquisition underwriting revenue is recognized throughout the creation period using the proportional performance method based upon costs incurred and work performed to date as a percentage of total estimated costs and work required. Management believes that this method is the most reliable and representative measure of progress for its data creation projects. On average, the duration of the data creation process is approximately one year. Under these contracts, the Company creates new seismic data designed in conjunction with its customers and specifically suited to the geology of the area using the most appropriate technology available. The Company outsources the substantial majority of the work required to complete data acquisition projects to third party contractors. The Company’s payments to these third party contractors comprise the substantial majority of the total estimated costs of the projects and are paid throughout the creation period. A typical survey includes specific activities required to complete the survey, each of which has value to the customers. Typical activities, that often occur concurrently, include: • permitting for land access, mineral rights, and regulatory approval; • surveying; • drilling for the placement of energy sources; • recording the data in the field; and • processing the data. The customers paying for the initial licenses receive legally enforceable rights to any resulting product of each activity described above. The customers also receive access to and use of the newly acquired, processed data. The customers’ access to and use of the results of the work performed and of the newly acquired, processed data is governed by a master license agreement, which is a separate agreement from the acquisition contract. The Company’s acquisition contracts require the customer either to have a master license agreement in place or to execute one at the time the acquisition contract is signed. The Company typically maintains sole ownership of the newly acquired data, which is added to its library, and is free to license the data to other customers. Revenue from Non-Exclusive Data Licenses The Company recognizes a substantial portion of its revenue from licensing of data once it is available for delivery. This revenue is sometimes referred to as resale licensing revenue, late sales or shelf sales. These sales fall under the following four basic forms of non-exclusive license contracts. • Specific license contract—The customer licenses and selects specific data from the data library, including data currently in progress, at the time the contract is entered into and holds this license for a long-term period. • Library card license contract—The customer initially receives only access to certain data. The customer may then select specific data, from the collection of data to which it has access, to hold long-term under its license agreement. The length of the selection periods under the library card contracts is limited in time and varies from customer to customer. • Review and possession license contract—The customer obtains the right to review a certain quantity of data for a limited period of time. During the review period, the customer may select specific data from that available for review to hold long-term under its license agreement. Any data not selected for long-term licensing must be returned to the Company at the end of the review period. • Review only license contract—The customer obtains rights to review a certain quantity of data for a limited period of time, but does not obtain the right to select specific data to hold long-term. The Company’s non-exclusive license contracts specify the following: • that all customers must also have in place or execute a master license agreement that governs the use of all data received under the Company’s non-exclusive license contracts; • the specific payment terms, generally ranging from 30 days to 12 months, and that such payments are non-cancelable and non-refundable; • the actual data that is accessible to the customer; and • that the data is licensed in its present form, as is, where is, and that the Company is under no obligation to make any enhancements, modifications or additions to the data unless specific terms to the contrary are included. Revenue from the non-exclusive licensing of seismic data is recognized when the following criteria are met: • the Company has an agreement with the customer that is validated by a signed contract; • the sales price is fixed and determinable; • collection is reasonably assured; • the customer has selected the specific data or the contract has expired without full selection; • the data is currently available for delivery; and • the license term has begun. Copies of the licensed data are available to the customer immediately upon request. For licenses that have been invoiced for which payment is due or has been received, but that have not met the aforementioned criteria, revenue is deferred along with the related direct costs (primarily consisting of sales commissions). This normally occurs under the library card, review and possession or review only license contracts because the data selection may occur over time. Additionally, if the contract allows licensing of data that is not currently available or enhancements, modifications or additions to the data are required per the contract, revenue is deferred until such time that the data is available. Revenue from Non-Monetary Exchanges In certain cases, the Company will take ownership of a customer’s seismic data or revenue interest (collectively referred to as “data”) in exchange for a non-exclusive license to selected seismic data from the Company’s library and, in some cases, services provided by Seitel Solutions (“Solutions”). In connection with specific data acquisition contracts, the Company may choose to receive both cash and ownership of seismic data from the customer as consideration for the underwriting of new data acquisition. In addition, the Company may receive advanced data processing services on selected existing data in exchange for a non-exclusive license to selected data from the Company’s library. These exchanges are referred to as non-monetary exchanges. A non-monetary exchange for data always complies with the following criteria: • the data license delivered is always distinct from the data received; • the customer forfeits ownership of its data; and • the Company retains ownership in its data. In non-monetary exchange transactions, the Company records a data library asset for the seismic data received or processed at the time the contract is entered into or the data is completed, as applicable, and recognizes revenue on the transaction in equal value in accordance with its policy on revenue from data licenses or data acquisition, or as services are provided by Solutions, as applicable. The data license to the customer is in the form of one of the four basic forms of contracts discussed above. These transactions are valued at the fair value of the data received or the fair value of the license granted or services provided, whichever is more readily determinable. Fair value of the data exchanged is determined using a multi-step process as follows: • First, the Company considers the value of the data or services received from the customer. In determining the value of the data received, the Company considers the age, quality, current demand and future marketability of the data and, in the case of 3D seismic data, the cost that would be required to create the data. In addition, the Company applies a limitation on the value it assigns per square mile on the data received. In determining the value of the services received, the Company considers the cost of such similar services that it could obtain from a third-party provider. • Second, the Company determines the value of the license granted to the customer. Typically, the range of cash transactions by the Company for licenses of similar data during the prior six months are evaluated. In evaluating the range of cash transactions, the Company does not consider transactions that are disproportionately high or low. Due to the Company’s revenue recognition policies, revenue recognized on non-monetary exchange transactions may not occur at the same time the seismic data acquired is recorded as an asset. The activity related to non-monetary exchanges was as follows (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Seismic data library additions $ 1,618 $ 37 $ 2,640 $ 7,959 Revenue recognized on specific data licenses or selections of data 1,295 913 2,635 6,626 Revenue recognized related to acquisition contracts 54 2 78 166 Revenue recognized related to Solutions — 13 — 13 Revenue from Solutions Revenue from Solutions is recognized as the services for reproduction and delivery of seismic data are provided to customers. |
Seismic Data Library | The Company’s seismic data library consists of seismic surveys that are offered for license to customers on a non-exclusive basis. Costs associated with creating, acquiring or purchasing the seismic data library are capitalized and amortized principally on the income forecast method subject to a straight-line amortization period of four years , applied on a quarterly basis at the individual survey level. Costs of Seismic Data Library For purchased seismic data, the Company capitalizes the purchase price of the acquired data. For data received through a non-monetary exchange, the Company capitalizes an amount equal to the fair value of the data received by the Company or the fair value of the license granted or services provided to the customer, whichever is more readily determinable. See Note B – “Revenue Recognition – Revenue from Non-Monetary Exchanges” for discussion of the process used to determine fair value. For newly created data, the capitalized costs include costs paid to third parties for the acquisition of data and related permitting, surveying and other activities associated with the data creation activity. In addition, the Company capitalizes certain internal costs related to processing the created data and reprocessing existing data. Such costs include salaries and benefits of the Company’s processing personnel and certain other costs incurred for the benefit of the processing activity. The Company believes that the internal processing costs capitalized are not greater than, and generally are less than, those that would be incurred and capitalized if such activity were performed by a third party. Capitalized costs for internal data processing were $0.7 million and $1.0 million for the three months ended September 30, 2016 and 2015 , respectively, and $2.3 million and $2.7 million for the nine months ended September 30, 2016 and 2015, respectively. Data Library Amortization The Company amortizes each survey in its seismic data library using the greater of the amortization that would result from the application of the income forecast method to each survey’s revenue, subject to a minimum amortization rate, or a straight-line basis over four years, commencing at the time such survey is completed and available for licensing to customers on a non-exclusive basis. The Company applies the income forecast method by forecasting the ultimate revenue expected to be derived from a particular data library component over the estimated useful life of each survey comprising part of such component. This forecast is made by the Company annually and reviewed quarterly. If, during any such review, the Company determines that the ultimate revenue for a library component is expected to be significantly different than the most recent estimate of total revenue for such library component, the Company revises the amortization rate attributable to future revenue from each survey in such component. The Company applies a minimum amortization rate of 70% . In addition, in connection with the forecast reviews and updates, the Company evaluates the recoverability of its seismic data library investment, and if required, records an impairment charge with respect to such investment. See discussion on “Seismic Data Library Impairment” below. The greater of the income forecast or straight-line amortization policy is applied quarterly on a cumulative basis at the individual survey level. Under this policy, the Company first records amortization using the income forecast method. The cumulative amortization recorded for each survey is then compared with the cumulative straight-line amortization. If the cumulative straight-line amortization is higher for any specific survey, additional amortization expense is recorded, resulting in accumulated amortization being equal to the cumulative straight-line amortization for such survey. This requirement is applied regardless of future-year revenue estimates for the library component of which the survey is a part and does not consider the existence of deferred revenue with respect to the library component or to any survey. The actual aggregate rate of amortization depends on the specific seismic surveys licensed and selected by the Company’s customers during the period and the amount of straight-line amortization recorded. The income forecast amortization rates can vary by component and, as of October 1, 2016 , is 70% for all components. For those seismic surveys which have been fully amortized, no amortization expense is required on revenue recorded. Seismic Data Library Impairment The Company evaluates its seismic data library investment by grouping individual surveys into components based on its operations and geological and geographical trends, resulting in the following data library segments for purposes of evaluating impairments: (I) North America 3D onshore comprised of the following components: (a) Texas Gulf Coast, (b) Eastern Texas, (c) Permian, (d) Anadarko Basin in North Texas/Oklahoma, (e) Southern Louisiana/Mississippi, (f) Northern Louisiana, (g) Rocky Mountains, (h) Utica/Marcellus in Pennsylvania, Ohio and West Virginia, (i) other United States, (j) Montney in British Columbia and Alberta, (k) Horn River in British Columbia, (l) Cardium in Alberta and (m) other Canada; (II) United States 2D; (III) Canada 2D; (IV) Mexico; (V) Gulf of Mexico offshore; and (VI) international data outside North America. The Company believes that these library components constitute the lowest levels of independently identifiable cash flows. The Company evaluates its seismic data library investment for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable. The Company considers the level of sales performance in each component compared to projected sales, as well as industry conditions, among others, to be key factors in determining when its seismic data investment should be evaluated for impairment. In evaluating sales performance of each component, the Company generally considers five consecutive quarters of actual performance below forecasted sales to be an indicator of potential impairment. The impairment evaluation is based first on a comparison of the undiscounted future cash flows over each component’s remaining estimated useful life with the carrying value of each library component. If the undiscounted cash flows are equal to or greater than the carrying value of such component, no impairment is recorded. If undiscounted cash flows are less than the carrying value of any component, the forecast of future cash flows related to such component is discounted to fair value and compared with such component’s carrying amount. The difference between the library component’s carrying amount and the discounted future value of the expected revenue stream is recorded as an impairment charge. For purposes of evaluating potential impairment losses, the Company estimates the future cash flows attributable to a library component by evaluating, among other factors, historical and recent revenue trends, oil and gas prospectivity in particular regions, general economic conditions affecting its customer base and expected changes in technology and other factors that the Company deems relevant. The cash flow estimates exclude expected future revenues attributable to non-monetary data exchanges and future data creation projects. The estimation of future cash flows and fair value is highly subjective and inherently imprecise. Estimates can change materially from period to period based on many factors, including those described in the preceding paragraph. Accordingly, if conditions change in the future, the Company may record impairment losses relative to its seismic data library investment, which could be material to any particular reporting period. The Company did not have any impairment charges during the nine months ended September 30, 2016 or 2015 . |
Recent Accounting Pronouncements | In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The objective of the ASU is to establish a single comprehensive model in accounting for revenue arising from contracts with customers and will supersede most of the existing revenue recognition guidance, including industry-specific guidance. The core principle of the guidance is that an entity recognizes revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also significantly expands disclosure requirements concerning revenues for most entities. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date” which deferred the effective date of ASU 2014-09 by one year. In March 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” , amending the principal-versus-agent implementation guidance set forth in ASU 2014-09. Among other things, ASU 2016-08 clarifies that an entity should evaluate whether it is the principal or the agent for each specified good or service promised in a contract with a customer. In April 2016, the FASB issued ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing”, which amends certain aspects of the guidance related to identifying performance obligations and licensing implementation. In May 2016, the FASB issued ASU No. 2016-12, “Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients” to address certain issues in the guidance on assessing collectibility, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. The Company is required to adopt the guidance set forth by these ASUs on January 1, 2018. Early application is permitted, but not before January 1, 2017. Entities have the option of using either a full retrospective or modified approach to adopt the new guidance. The Company anticipates adopting the new revenue recognition guidance effective January 1, 2018 and is currently evaluating the method of adoption and the effect on its consolidated financial statements and financial statement disclosures. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” with the objective of increasing transparency and comparability among organizations by requiring lessees to recognize assets and liabilities on the balance sheet for the present value of the rights and obligations created by all leases with terms of more than 12 months. The ASU will also require disclosures designed to give financial statement users information on the amount, timing and uncertainty of cash flows arising from leases. The amendments in this ASU are to be applied using a modified retrospective approach and will be effective for the Company as of January 1, 2019, but early adoption is permitted. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” The amendments in this ASU simplify several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and statutory tax withholding requirements, as well as classification in the statement of cash flows. This guidance is effective on January 1, 2017, with early adoption permitted. Adoption of ASU 2016-09 will not have a material effect on the Company's consolidated financial statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Revenue Recognition [Abstract] | |
Revenue Recognized From Non-Monetary Exchanges | Due to the Company’s revenue recognition policies, revenue recognized on non-monetary exchange transactions may not occur at the same time the seismic data acquired is recorded as an asset. The activity related to non-monetary exchanges was as follows (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Seismic data library additions $ 1,618 $ 37 $ 2,640 $ 7,959 Revenue recognized on specific data licenses or selections of data 1,295 913 2,635 6,626 Revenue recognized related to acquisition contracts 54 2 78 166 Revenue recognized related to Solutions — 13 — 13 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Detail of income tax benefit | The following is the detail of income tax benefit recorded for the three and nine months ended September 30, 2016 (in thousands): Three Months Nine Months Current operations $ (2,217 ) $ (11,160 ) Change in unrecognized tax benefits (864 ) (2,865 ) Change in valuation allowance 1,692 8,942 Income tax benefit $ (1,389 ) $ (5,083 ) |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instruments | The following is a summary of the Company’s debt (in thousands): September 30, December 31, 9½% Senior Notes $ 250,000 $ 250,000 Credit Facility — — 250,000 250,000 Less: unamortized debt issuance costs (3,444 ) (4,304 ) $ 246,556 $ 245,696 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on a Recurring Basis | The Company’s assets that are measured at fair value on a recurring basis include the following (in thousands): Fair Value Measurements Using Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Unobservable Inputs (Level 3) At September 30, 2016: Cash equivalents $ 60,675 $ 60,675 $ — $ — At December 31, 2015: Cash equivalents $ 52,421 $ 52,421 $ — $ — |
Statement Of Cash Flow Inform23
Statement Of Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Noncash Additions to Seismic Data Library | The Company had non-cash additions to its seismic data library comprised of the following (in thousands): Nine Months Ended 2016 2015 Non-monetary exchanges related to resale licensing revenue $ 1,840 $ 7,948 Non-monetary exchanges from underwriting of new data acquisition 408 — Adjustment to prior year non-monetary exchange from underwriting of new data acquisition — (2 ) Non-monetary exchanges related to data processing and reproduction services 392 13 Total non-cash additions to seismic data library $ 2,640 $ 7,959 |
Schedule of Non-Cash Revenue | Non-cash revenue consisted of the following (in thousands): Nine Months Ended 2016 2015 Acquisition revenue on underwriting from non-monetary exchange contracts $ 78 $ 166 Licensing revenue from specific data licenses and selections on non-monetary exchange contracts 2,635 6,626 Solutions revenue recognized from non-monetary exchange contracts — 13 Total non-cash revenue $ 2,713 $ 6,805 |
Supplemental Guarantors Conso24
Supplemental Guarantors Consolidating Condensed Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Supplemental Guarantors Consolidating Condensed Financial Information [Abstract] | |
Schedule of Condensed Balance Sheet [Table Text Block] | CONSOLIDATING CONDENSED BALANCE SHEET As of September 30, 2016 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total ASSETS Cash and cash equivalents $ — $ 54,959 $ 5,915 $ — $ 60,874 Receivables Trade, net — 4,836 1,331 — 6,167 Notes and other — 14 3,524 — 3,538 Due from Seitel Holdings, Inc. — 1,175 — — 1,175 Intercompany receivables (payables) (40,279 ) 41,740 (1,461 ) — — Investment in subsidiaries 410,049 416,236 633 (826,918 ) — Net seismic data library — 101,903 26,224 (38 ) 128,089 Net property and equipment — 733 1,180 — 1,913 Prepaid expenses, deferred charges and other 89 2,052 371 — 2,512 Intangible assets, net 900 1,205 357 — 2,462 Goodwill — 107,688 76,083 — 183,771 Deferred income taxes — 71 — — 71 TOTAL ASSETS $ 370,759 $ 732,612 $ 114,157 $ (826,956 ) $ 390,572 LIABILITIES AND STOCKHOLDER’S EQUITY LIABILITIES Accounts payable and accrued liabilities $ 10,947 $ 8,345 $ 3,969 $ — $ 23,261 Income taxes payable — — 173 — 173 Senior Notes 246,556 — — — 246,556 Obligations under capital leases — — 1,599 — 1,599 Deferred revenue — 16,254 2,419 — 18,673 Deferred income taxes — — 1,002 — 1,002 TOTAL LIABILITIES 257,503 24,599 9,162 — 291,264 STOCKHOLDER’S EQUITY Common stock — — — — — Additional paid-in capital 400,564 — — — 400,564 Parent investment — 764,105 156,518 (920,623 ) — Retained deficit (287,308 ) (56,092 ) (37,335 ) 93,427 (287,308 ) Accumulated other comprehensive loss — — (14,188 ) 240 (13,948 ) TOTAL STOCKHOLDER’S EQUITY 113,256 708,013 104,995 (826,956 ) 99,308 TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY $ 370,759 $ 732,612 $ 114,157 $ (826,956 ) $ 390,572 CONSOLIDATING CONDENSED BALANCE SHEET As of December 31, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total ASSETS Cash and cash equivalents $ — $ 51,192 $ 1,483 $ — $ 52,675 Receivables Trade, net — 12,459 2,371 — 14,830 Notes and other — 3 1,315 — 1,318 Due from Seitel Holdings, Inc. — 1,156 — — 1,156 Intercompany receivables (payables) (29,144 ) 31,537 (2,393 ) — — Investment in subsidiaries 420,547 419,499 692 (840,738 ) — Net seismic data library — 125,253 36,180 (70 ) 161,363 Net property and equipment — 1,273 1,330 — 2,603 Prepaid expenses, deferred charges and other 139 1,737 307 — 2,183 Intangible assets, net 900 3,613 1,015 — 5,528 Goodwill — 107,688 72,104 — 179,792 Deferred income taxes — 39 — — 39 TOTAL ASSETS $ 392,442 $ 755,449 $ 114,404 $ (840,808 ) $ 421,487 LIABILITIES AND STOCKHOLDER’S EQUITY LIABILITIES Accounts payable and accrued liabilities $ 5,007 $ 13,253 $ 5,390 $ — $ 23,650 Senior Notes 245,696 — — — 245,696 Obligations under capital leases — — 1,661 — 1,661 Deferred revenue — 23,525 2,378 — 25,903 Deferred income taxes — — 2,361 — 2,361 TOTAL LIABILITIES 250,703 36,778 11,790 — 299,271 STOCKHOLDER’S EQUITY Common stock — — — — — Additional paid-in capital 400,505 — — — 400,505 Parent investment — 764,105 156,395 (920,500 ) — Retained deficit (258,766 ) (45,434 ) (34,102 ) 79,536 (258,766 ) Accumulated other comprehensive loss — — (19,679 ) 156 (19,523 ) TOTAL STOCKHOLDER’S EQUITY 141,739 718,671 102,614 (840,808 ) 122,216 TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY $ 392,442 $ 755,449 $ 114,404 $ (840,808 ) $ 421,487 |
Schedule of Condensed Income Statement [Table Text Block] | CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS For the Three Months Ended September 30, 2016 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total REVENUE $ — $ 20,017 $ 3,557 $ (319 ) $ 23,255 EXPENSES: Depreciation and amortization — 15,071 3,875 (13 ) 18,933 Cost of sales — 19 1 2 22 Selling, general and administrative 315 3,799 1,593 (321 ) 5,386 315 18,889 5,469 (332 ) 24,341 INCOME (LOSS) FROM OPERATIONS (315 ) 1,128 (1,912 ) 13 (1,086 ) Interest expense, net (5,732 ) (497 ) (69 ) — (6,298 ) Foreign currency exchange losses — — (20 ) — (20 ) Other income — 572 — — 572 Income (loss) before income taxes and equity in income (loss) of subsidiaries (6,047 ) 1,203 (2,001 ) 13 (6,832 ) Provision (benefit) for income taxes — 22 (1,411 ) — (1,389 ) Equity in income (loss) of subsidiaries 604 (590 ) — (14 ) — NET INCOME (LOSS) $ (5,443 ) $ 591 $ (590 ) $ (1 ) $ (5,443 ) CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS) For the Three Months Ended September 30, 2016 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Net income (loss) $ (5,443 ) $ 591 $ (590 ) $ (1 ) $ (5,443 ) Foreign currency translation adjustments — — (862 ) 1 (861 ) Comprehensive income (loss) $ (5,443 ) $ 591 $ (1,452 ) $ — $ (6,304 ) CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS For the Three Months Ended September 30, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total REVENUE $ — $ 28,145 $ 3,427 $ (330 ) $ 31,242 EXPENSES: Depreciation and amortization — 18,754 5,885 (12 ) 24,627 Cost of sales — 22 15 — 37 Selling, general and administrative 232 3,833 1,558 (330 ) 5,293 232 22,609 7,458 (342 ) 29,957 INCOME (LOSS) FROM OPERATIONS (232 ) 5,536 (4,031 ) 12 1,285 Interest expense, net (5,563 ) (714 ) (104 ) — (6,381 ) Foreign currency exchange losses — — (138 ) — (138 ) Income (loss) before income taxes and equity in loss of subsidiaries (5,795 ) 4,822 (4,273 ) 12 (5,234 ) Provision (benefit) for income taxes (1,937 ) 1,820 (1,062 ) — (1,179 ) Equity in loss of subsidiaries (197 ) (3,211 ) — 3,408 — NET LOSS $ (4,055 ) $ (209 ) $ (3,211 ) $ 3,420 $ (4,055 ) CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE LOSS For the Three Months Ended September 30, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Net loss $ (4,055 ) $ (209 ) $ (3,211 ) $ 3,420 $ (4,055 ) Foreign currency translation adjustments — — (8,262 ) 7 (8,255 ) Comprehensive loss $ (4,055 ) $ (209 ) $ (11,473 ) $ 3,427 $ (12,310 ) CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS For the Nine Months Ended September 30, 2016 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total REVENUE $ — $ 49,297 $ 11,279 $ (1,031 ) $ 59,545 EXPENSES: Depreciation and amortization — 44,237 14,640 (38 ) 58,839 Cost of sales — 96 13 (54 ) 55 Selling, general and administrative 888 11,256 4,846 (977 ) 16,013 888 55,589 19,499 (1,069 ) 74,907 LOSS FROM OPERATIONS (888 ) (6,292 ) (8,220 ) 38 (15,362 ) Interest expense, net (17,034 ) (1,703 ) (251 ) — (18,988 ) Foreign currency exchange gains — — 143 — 143 Other income — 581 1 — 582 Loss before income taxes and equity in loss of subsidiaries (17,922 ) (7,414 ) (8,327 ) 38 (33,625 ) Provision (benefit) for income taxes — 11 (5,094 ) — (5,083 ) Equity in loss of subsidiaries (10,620 ) (3,233 ) — 13,853 — NET LOSS $ (28,542 ) $ (10,658 ) $ (3,233 ) $ 13,891 $ (28,542 ) CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS) For the Nine Months Ended September 30, 2016 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Net loss $ (28,542 ) $ (10,658 ) $ (3,233 ) $ 13,891 $ (28,542 ) Foreign currency translation adjustments — — 5,491 84 5,575 Comprehensive income (loss) $ (28,542 ) $ (10,658 ) $ 2,258 $ 13,975 $ (22,967 ) CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS For the Nine Months Ended September 30, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total REVENUE $ — $ 61,413 $ 25,868 $ (991 ) $ 86,290 EXPENSES: Depreciation and amortization — 44,180 23,972 (38 ) 68,114 Cost of sales — 109 55 — 164 Selling, general and administrative 807 11,933 5,401 (991 ) 17,150 807 56,222 29,428 (1,029 ) 85,428 INCOME (LOSS) FROM OPERATIONS (807 ) 5,191 (3,560 ) 38 862 Interest expense, net (16,597 ) (2,125 ) (298 ) — (19,020 ) Foreign currency exchange losses — (3 ) (1,556 ) — (1,559 ) Other income — 5 — — 5 Income (loss) before income taxes and equity in loss of subsidiaries (17,404 ) 3,068 (5,414 ) 38 (19,712 ) Provision (benefit) for income taxes (5,869 ) 1,242 (1,108 ) — (5,735 ) Equity in loss of subsidiaries (2,442 ) (4,306 ) — 6,748 — NET LOSS $ (13,977 ) $ (2,480 ) $ (4,306 ) $ 6,786 $ (13,977 ) CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE LOSS For the Nine Months Ended September 30, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Net loss $ (13,977 ) $ (2,480 ) $ (4,306 ) $ 6,786 $ (13,977 ) Foreign currency translation adjustments — — (17,852 ) 135 (17,717 ) Comprehensive loss $ (13,977 ) $ (2,480 ) $ (22,158 ) $ 6,921 $ (31,694 ) |
Schedule of Condensed Cash Flow Statement [Table Text Block] | CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS For the Nine Months Ended September 30, 2016 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Cash flows from operating activities: Net cash provided by (used in) operating activities $ (12,525 ) $ 35,409 $ 6,247 $ — $ 29,131 Cash flows from investing activities: Cash invested in seismic data — (19,141 ) (1,558 ) — (20,699 ) Cash paid to acquire property and equipment — (173 ) (3 ) — (176 ) Cash from sale of property and equipment — 17 1 — 18 Advances to Seitel Holdings, Inc. — (19 ) — — (19 ) Net cash used in investing activities — (19,316 ) (1,560 ) — (20,876 ) Cash flows from financing activities: Principal payments on capital lease obligations — — (152 ) — (152 ) Intercompany transfers 12,525 (12,326 ) (199 ) — — Net cash provided by (used in) financing activities 12,525 (12,326 ) (351 ) — (152 ) Effect of exchange rate changes — — 96 — 96 Net increase in cash and cash equivalents — 3,767 4,432 — 8,199 Cash and cash equivalents at beginning of period — 51,192 1,483 — 52,675 Cash and cash equivalents at end of period $ — $ 54,959 $ 5,915 $ — $ 60,874 CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS For the Nine Months Ended September 30, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Cash flows from operating activities: Net cash provided by (used in) operating activities $ (12,797 ) $ 64,937 $ 15,589 $ — $ 67,729 Cash flows from investing activities: Cash invested in seismic data — (49,153 ) (12,065 ) — (61,218 ) Cash paid to acquire property and equipment — (396 ) (10 ) — (406 ) Advances to Seitel Holdings, Inc. — (10 ) — — (10 ) Net cash used in investing activities — (49,559 ) (12,075 ) — (61,634 ) Cash flows from financing activities: Principal payments on capital lease obligations — (18 ) (150 ) — (168 ) Intercompany transfers 12,797 (1,797 ) (11,000 ) — — Net cash provided by (used in) financing activities 12,797 (1,815 ) (11,150 ) — (168 ) Effect of exchange rate changes — (3 ) (1,125 ) — (1,128 ) Net increase (decrease) in cash and cash equivalents — 13,560 (8,761 ) — 4,799 Cash and cash equivalents at beginning of period — 48,525 10,650 — 59,175 Cash and cash equivalents at end of period $ — $ 62,085 $ 1,889 $ — $ 63,974 |
Basis Of Presentation Basis of
Basis Of Presentation Basis of Presentation (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||
Unamortized debt issuance costs | $ 3,444 | $ 4,304 |
Revenue Recognition (Revenue fr
Revenue Recognition (Revenue from Non-Exclusive Data Licenses) (Details) | 9 Months Ended |
Sep. 30, 2016 | |
Minimum [Member] | |
Revenue from External Customer | |
Payment terms of non-exclusive license contracts | 30 days |
Maximum [Member] | |
Revenue from External Customer | |
Payment terms of non-exclusive license contracts | 12 months |
Revenue Recognition (Revenue 27
Revenue Recognition (Revenue from Non-Monetary Exchanges) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Nonmonetary Transaction | ||||
Seismic data library additions | $ 2,640 | $ 7,959 | ||
Non-cash revenue | 2,713 | 6,805 | ||
Specific Data Licenses or Selections of Data [Member] | ||||
Nonmonetary Transaction | ||||
Non-cash revenue | $ 1,295 | $ 913 | 2,635 | 6,626 |
Acquisition Contracts [Member] | ||||
Nonmonetary Transaction | ||||
Non-cash revenue | 54 | 2 | 78 | 166 |
Solutions [Member] | ||||
Nonmonetary Transaction | ||||
Non-cash revenue | 0 | 13 | 0 | 13 |
Seismic Data Library [Member] | ||||
Nonmonetary Transaction | ||||
Seismic data library additions | $ 1,618 | $ 37 | $ 2,640 | $ 7,959 |
Seismic Data Library (Details)
Seismic Data Library (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Oct. 01, 2016 | |
Seismic Data Library | |||||
Straight-line amortization period | 4 years | ||||
Internal data processing costs capitalized | $ 700 | $ 1,000 | $ 2,300 | $ 2,700 | |
Lowest amortization rate using the income forecast method | 70.00% | ||||
Actual aggregate rate of amortization | 70.00% | ||||
Asset impairment charges | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | |
Income Tax Disclosure [Abstract] | ||
Tax benefit resulting from settlements with taxing authorities | $ 0.3 | $ 2.4 |
Tax benefit resulting from lapse of applicable statute of limitations | 0.6 | 0.6 |
Interest on unrecognized tax benefits | 0.1 | |
Decrease in unrecognized tax benefits is reasonably possible in the next twelve months | 0.2 | 0.2 |
Unrecognized tax benefits that would impact the effective income tax rate if recognized in future periods | $ 0.2 | $ 0.2 |
Income Taxes (Detail of income
Income Taxes (Detail of income tax benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income tax benefit: | ||||
Current operations | $ (2,217) | $ (11,160) | ||
Change in unrecognized tax benefits | (864) | (2,865) | ||
Change in valuation allowance | 1,692 | 8,942 | ||
Income tax benefit | $ (1,389) | $ (1,179) | $ (5,083) | $ (5,735) |
Debt (Details)
Debt (Details) | 9 Months Ended | ||||
Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Mar. 20, 2013USD ($) | May 25, 2011USD ($) | May 25, 2011CAD | |
Debt Instrument [Line Items] | |||||
9½% Senior Notes | $ 250,000,000 | $ 250,000,000 | |||
Credit Facility | 0 | 0 | |||
Total debt outstanding | 250,000,000 | 250,000,000 | |||
Unamortized debt issuance costs | (3,444,000) | (4,304,000) | |||
Senior Notes, net of unamortized debt issuance costs | $ 246,556,000 | $ 245,696,000 | |||
Credit Facility | |||||
Maximum borrowing capacity | $ 30,000,000 | ||||
Canadian Lender [Member] | |||||
Credit Facility | |||||
Maximum borrowing capacity | CAD | CAD 5,000,000 | ||||
Senior Notes [Member] | 9½% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Face amount of senior notes | $ 250,000,000 | ||||
Interest rate of senior notes | 9.50% | ||||
Debt Instrument, Redemption, Period One [Member] | Senior Notes [Member] | 9½% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage of principal amount | 35.00% | ||||
Call premium | 109.50% | ||||
Debt Instrument, Redemption, Period Two [Member] | Senior Notes [Member] | 9½% Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Call premium | 101.00% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | $ 60,675 | $ 52,421 |
Quoted Prices in Active Markets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 60,675 | 52,421 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 0 | 0 |
Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | $ 0 | $ 0 |
Fair Value Measurements (Other
Fair Value Measurements (Other Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Unamortized debt issuance costs | $ 3,444 | $ 4,304 |
Book Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Senior Notes | 246,600 | 245,700 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Senior Notes | $ 208,800 | $ 152,500 |
Statement Of Cash Flow Inform34
Statement Of Cash Flow Information (Restricted Cash) (Details) $ in Millions | 9 Months Ended | |||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015CAD | |
Restricted Cash and Cash Equivalents Items | ||||
Income taxes paid | $ 1.5 | $ 0.3 | ||
Income tax refunds | 1.5 | $ 0.4 | ||
Cash Posted As Security Against Company Issued Credit Cards for Seitel Canada [Member] | ||||
Restricted Cash and Cash Equivalents Items | ||||
Restricted cash | CAD | CAD 125,000 | |||
Seismic Operations Bonds [Member] | ||||
Restricted Cash and Cash Equivalents Items | ||||
Restricted cash | $ 0.5 | $ 0.5 |
Statement Of Cash Flow Inform35
Statement Of Cash Flow Information (Non-Cash Additions and Non-Cash Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Nonmonetary Transaction | ||||
Non-monetary exchanges related to resale licensing revenue | $ 1,840 | $ 7,948 | ||
Non-monetary exchanges from underwriting of new data acquisition | 408 | 0 | ||
Adjustment to prior year non-monetary exchange from underwriting of new data acquisition | 0 | (2) | ||
Non-monetary exchanges related to data processing and reproduction services | 392 | 13 | ||
Total non-cash additions to seismic data library | 2,640 | 7,959 | ||
Non-cash revenue | 2,713 | 6,805 | ||
Acquisition revenue on underwriting [Member] | ||||
Nonmonetary Transaction | ||||
Non-cash revenue | $ 54 | $ 2 | 78 | 166 |
Licensing revenue from specific data licenses and selections [Member] | ||||
Nonmonetary Transaction | ||||
Non-cash revenue | 1,295 | 913 | 2,635 | 6,626 |
Solutions revenue recognized [Member] | ||||
Nonmonetary Transaction | ||||
Non-cash revenue | $ 0 | $ 13 | $ 0 | $ 13 |
Supplemental Guarantors Conso36
Supplemental Guarantors Consolidating Condensed Financial Information (Narrative) (Details) - Senior Notes [Member] - 9½% Senior Notes [Member] $ in Millions | Mar. 20, 2013USD ($) |
Face amount of senior notes | $ 250 |
Interest rate of senior notes | 9.50% |
Supplemental Guarantors Conso37
Supplemental Guarantors Consolidating Condensed Financial Information (Balance Sheet) (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||||
Cash and cash equivalents | $ 60,874 | $ 52,675 | $ 63,974 | $ 59,175 |
Receivables | ||||
Trade, net | 6,167 | 14,830 | ||
Notes and other | 3,538 | 1,318 | ||
Due from Seitel Holdings, Inc. | 1,175 | 1,156 | ||
Intercompany receivables (payables) | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Net seismic data library | 128,089 | 161,363 | ||
Net property and equipment | 1,913 | 2,603 | ||
Prepaid expenses, deferred charges and other | 2,512 | 2,183 | ||
Intangible assets, net | 2,462 | 5,528 | ||
Goodwill | 183,771 | 179,792 | ||
Deferred income taxes | 71 | 39 | ||
TOTAL ASSETS | 390,572 | 421,487 | ||
LIABILITIES | ||||
Accounts payable and accrued liabilities | 23,261 | 23,650 | ||
Income taxes payable | 173 | 0 | ||
Senior Notes | 246,556 | 245,696 | ||
Obligations under capital leases | 1,599 | 1,661 | ||
Deferred revenue | 18,673 | 25,903 | ||
Deferred income taxes | 1,002 | 2,361 | ||
TOTAL LIABILITIES | 291,264 | 299,271 | ||
STOCKHOLDER'S EQUITY | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 400,564 | 400,505 | ||
Parent investment | 0 | 0 | ||
Retained deficit | (287,308) | (258,766) | ||
Accumulated other comprehensive loss | (13,948) | (19,523) | ||
TOTAL STOCKHOLDER'S EQUITY | 99,308 | 122,216 | ||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | 390,572 | 421,487 | ||
Consolidation, Eliminations [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables | ||||
Trade, net | 0 | 0 | ||
Notes and other | 0 | 0 | ||
Due from Seitel Holdings, Inc. | 0 | 0 | ||
Intercompany receivables (payables) | 0 | 0 | ||
Investment in subsidiaries | (826,918) | (840,738) | ||
Net seismic data library | (38) | (70) | ||
Net property and equipment | 0 | 0 | ||
Prepaid expenses, deferred charges and other | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
TOTAL ASSETS | (826,956) | (840,808) | ||
LIABILITIES | ||||
Accounts payable and accrued liabilities | 0 | 0 | ||
Income taxes payable | 0 | |||
Senior Notes | 0 | 0 | ||
Obligations under capital leases | 0 | 0 | ||
Deferred revenue | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
TOTAL LIABILITIES | 0 | 0 | ||
STOCKHOLDER'S EQUITY | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 0 | 0 | ||
Parent investment | (920,623) | (920,500) | ||
Retained deficit | 93,427 | 79,536 | ||
Accumulated other comprehensive loss | 240 | 156 | ||
TOTAL STOCKHOLDER'S EQUITY | (826,956) | (840,808) | ||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | (826,956) | (840,808) | ||
Parent [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables | ||||
Trade, net | 0 | 0 | ||
Notes and other | 0 | 0 | ||
Due from Seitel Holdings, Inc. | 0 | 0 | ||
Intercompany receivables (payables) | (40,279) | (29,144) | ||
Investment in subsidiaries | 410,049 | 420,547 | ||
Net seismic data library | 0 | 0 | ||
Net property and equipment | 0 | 0 | ||
Prepaid expenses, deferred charges and other | 89 | 139 | ||
Intangible assets, net | 900 | 900 | ||
Goodwill | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
TOTAL ASSETS | 370,759 | 392,442 | ||
LIABILITIES | ||||
Accounts payable and accrued liabilities | 10,947 | 5,007 | ||
Income taxes payable | 0 | |||
Senior Notes | 246,556 | 245,696 | ||
Obligations under capital leases | 0 | 0 | ||
Deferred revenue | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
TOTAL LIABILITIES | 257,503 | 250,703 | ||
STOCKHOLDER'S EQUITY | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 400,564 | 400,505 | ||
Parent investment | 0 | 0 | ||
Retained deficit | (287,308) | (258,766) | ||
Accumulated other comprehensive loss | 0 | 0 | ||
TOTAL STOCKHOLDER'S EQUITY | 113,256 | 141,739 | ||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | 370,759 | 392,442 | ||
Guarantor Subsidiaries [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 54,959 | 51,192 | 62,085 | 48,525 |
Receivables | ||||
Trade, net | 4,836 | 12,459 | ||
Notes and other | 14 | 3 | ||
Due from Seitel Holdings, Inc. | 1,175 | 1,156 | ||
Intercompany receivables (payables) | 41,740 | 31,537 | ||
Investment in subsidiaries | 416,236 | 419,499 | ||
Net seismic data library | 101,903 | 125,253 | ||
Net property and equipment | 733 | 1,273 | ||
Prepaid expenses, deferred charges and other | 2,052 | 1,737 | ||
Intangible assets, net | 1,205 | 3,613 | ||
Goodwill | 107,688 | 107,688 | ||
Deferred income taxes | 71 | 39 | ||
TOTAL ASSETS | 732,612 | 755,449 | ||
LIABILITIES | ||||
Accounts payable and accrued liabilities | 8,345 | 13,253 | ||
Income taxes payable | 0 | |||
Senior Notes | 0 | 0 | ||
Obligations under capital leases | 0 | 0 | ||
Deferred revenue | 16,254 | 23,525 | ||
Deferred income taxes | 0 | 0 | ||
TOTAL LIABILITIES | 24,599 | 36,778 | ||
STOCKHOLDER'S EQUITY | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 0 | 0 | ||
Parent investment | 764,105 | 764,105 | ||
Retained deficit | (56,092) | (45,434) | ||
Accumulated other comprehensive loss | 0 | 0 | ||
TOTAL STOCKHOLDER'S EQUITY | 708,013 | 718,671 | ||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | 732,612 | 755,449 | ||
Non-Guarantor Subsidiaries [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 5,915 | 1,483 | $ 1,889 | $ 10,650 |
Receivables | ||||
Trade, net | 1,331 | 2,371 | ||
Notes and other | 3,524 | 1,315 | ||
Due from Seitel Holdings, Inc. | 0 | 0 | ||
Intercompany receivables (payables) | (1,461) | (2,393) | ||
Investment in subsidiaries | 633 | 692 | ||
Net seismic data library | 26,224 | 36,180 | ||
Net property and equipment | 1,180 | 1,330 | ||
Prepaid expenses, deferred charges and other | 371 | 307 | ||
Intangible assets, net | 357 | 1,015 | ||
Goodwill | 76,083 | 72,104 | ||
Deferred income taxes | 0 | 0 | ||
TOTAL ASSETS | 114,157 | 114,404 | ||
LIABILITIES | ||||
Accounts payable and accrued liabilities | 3,969 | 5,390 | ||
Income taxes payable | 173 | |||
Senior Notes | 0 | 0 | ||
Obligations under capital leases | 1,599 | 1,661 | ||
Deferred revenue | 2,419 | 2,378 | ||
Deferred income taxes | 1,002 | 2,361 | ||
TOTAL LIABILITIES | 9,162 | 11,790 | ||
STOCKHOLDER'S EQUITY | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 0 | 0 | ||
Parent investment | 156,518 | 156,395 | ||
Retained deficit | (37,335) | (34,102) | ||
Accumulated other comprehensive loss | (14,188) | (19,679) | ||
TOTAL STOCKHOLDER'S EQUITY | 104,995 | 102,614 | ||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ 114,157 | $ 114,404 |
Supplemental Guarantors Conso38
Supplemental Guarantors Consolidating Condensed Financial Information (Statement of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Condensed Financial Statements, Captions | ||||
REVENUE | $ 23,255 | $ 31,242 | $ 59,545 | $ 86,290 |
EXPENSES: | ||||
Depreciation and amortization | 18,933 | 24,627 | 58,839 | 68,114 |
Cost of sales | 22 | 37 | 55 | 164 |
Selling, general and administrative | 5,386 | 5,293 | 16,013 | 17,150 |
Total operating expenses | 24,341 | 29,957 | 74,907 | 85,428 |
INCOME (LOSS) FROM OPERATIONS | (1,086) | 1,285 | (15,362) | 862 |
Interest expense, net | (6,298) | (6,381) | (18,988) | (19,020) |
Foreign currency exchange gains (losses) | (20) | (138) | 143 | (1,559) |
Other income | 572 | 0 | 582 | 5 |
Income (loss) before income taxes and equity in income (loss) of subsidiaries | (6,832) | (5,234) | (33,625) | (19,712) |
Provision (benefit) for income taxes | (1,389) | (1,179) | (5,083) | (5,735) |
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
NET LOSS | (5,443) | (4,055) | (28,542) | (13,977) |
Consolidation, Eliminations [Member] | ||||
Condensed Financial Statements, Captions | ||||
REVENUE | (319) | (330) | (1,031) | (991) |
EXPENSES: | ||||
Depreciation and amortization | (13) | (12) | (38) | (38) |
Cost of sales | 2 | 0 | (54) | 0 |
Selling, general and administrative | (321) | (330) | (977) | (991) |
Total operating expenses | (332) | (342) | (1,069) | (1,029) |
INCOME (LOSS) FROM OPERATIONS | 13 | 12 | 38 | 38 |
Interest expense, net | 0 | 0 | 0 | 0 |
Foreign currency exchange gains (losses) | 0 | 0 | 0 | 0 |
Other income | 0 | 0 | 0 | |
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 13 | 12 | 38 | 38 |
Provision (benefit) for income taxes | 0 | 0 | 0 | 0 |
Equity in income (loss) of subsidiaries | (14) | 3,408 | 13,853 | 6,748 |
NET LOSS | (1) | 3,420 | 13,891 | 6,786 |
Parent [Member] | ||||
Condensed Financial Statements, Captions | ||||
REVENUE | 0 | 0 | 0 | 0 |
EXPENSES: | ||||
Depreciation and amortization | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Selling, general and administrative | 315 | 232 | 888 | 807 |
Total operating expenses | 315 | 232 | 888 | 807 |
INCOME (LOSS) FROM OPERATIONS | (315) | (232) | (888) | (807) |
Interest expense, net | (5,732) | (5,563) | (17,034) | (16,597) |
Foreign currency exchange gains (losses) | 0 | 0 | 0 | 0 |
Other income | 0 | 0 | 0 | |
Income (loss) before income taxes and equity in income (loss) of subsidiaries | (6,047) | (5,795) | (17,922) | (17,404) |
Provision (benefit) for income taxes | 0 | (1,937) | 0 | (5,869) |
Equity in income (loss) of subsidiaries | 604 | (197) | (10,620) | (2,442) |
NET LOSS | (5,443) | (4,055) | (28,542) | (13,977) |
Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions | ||||
REVENUE | 20,017 | 28,145 | 49,297 | 61,413 |
EXPENSES: | ||||
Depreciation and amortization | 15,071 | 18,754 | 44,237 | 44,180 |
Cost of sales | 19 | 22 | 96 | 109 |
Selling, general and administrative | 3,799 | 3,833 | 11,256 | 11,933 |
Total operating expenses | 18,889 | 22,609 | 55,589 | 56,222 |
INCOME (LOSS) FROM OPERATIONS | 1,128 | 5,536 | (6,292) | 5,191 |
Interest expense, net | (497) | (714) | (1,703) | (2,125) |
Foreign currency exchange gains (losses) | 0 | 0 | 0 | (3) |
Other income | 572 | 581 | 5 | |
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 1,203 | 4,822 | (7,414) | 3,068 |
Provision (benefit) for income taxes | 22 | 1,820 | 11 | 1,242 |
Equity in income (loss) of subsidiaries | (590) | (3,211) | (3,233) | (4,306) |
NET LOSS | 591 | (209) | (10,658) | (2,480) |
Non-Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions | ||||
REVENUE | 3,557 | 3,427 | 11,279 | 25,868 |
EXPENSES: | ||||
Depreciation and amortization | 3,875 | 5,885 | 14,640 | 23,972 |
Cost of sales | 1 | 15 | 13 | 55 |
Selling, general and administrative | 1,593 | 1,558 | 4,846 | 5,401 |
Total operating expenses | 5,469 | 7,458 | 19,499 | 29,428 |
INCOME (LOSS) FROM OPERATIONS | (1,912) | (4,031) | (8,220) | (3,560) |
Interest expense, net | (69) | (104) | (251) | (298) |
Foreign currency exchange gains (losses) | (20) | (138) | 143 | (1,556) |
Other income | 0 | 1 | 0 | |
Income (loss) before income taxes and equity in income (loss) of subsidiaries | (2,001) | (4,273) | (8,327) | (5,414) |
Provision (benefit) for income taxes | (1,411) | (1,062) | (5,094) | (1,108) |
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
NET LOSS | $ (590) | $ (3,211) | $ (3,233) | $ (4,306) |
Supplemental Guarantors Conso39
Supplemental Guarantors Consolidating Condensed Financial Information (Statement of Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Condensed Financial Statements, Captions | ||||
Net loss | $ (5,443) | $ (4,055) | $ (28,542) | $ (13,977) |
Foreign currency translation adjustments | (861) | (8,255) | 5,575 | (17,717) |
Comprehensive income (loss) | (6,304) | (12,310) | (22,967) | (31,694) |
Consolidation, Eliminations [Member] | ||||
Condensed Financial Statements, Captions | ||||
Net loss | (1) | 3,420 | 13,891 | 6,786 |
Foreign currency translation adjustments | 1 | 7 | 84 | 135 |
Comprehensive income (loss) | 0 | 3,427 | 13,975 | 6,921 |
Parent [Member] | ||||
Condensed Financial Statements, Captions | ||||
Net loss | (5,443) | (4,055) | (28,542) | (13,977) |
Foreign currency translation adjustments | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | (5,443) | (4,055) | (28,542) | (13,977) |
Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions | ||||
Net loss | 591 | (209) | (10,658) | (2,480) |
Foreign currency translation adjustments | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | 591 | (209) | (10,658) | (2,480) |
Non-Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions | ||||
Net loss | (590) | (3,211) | (3,233) | (4,306) |
Foreign currency translation adjustments | (862) | (8,262) | 5,491 | (17,852) |
Comprehensive income (loss) | $ (1,452) | $ (11,473) | $ 2,258 | $ (22,158) |
Supplemental Guarantors Conso40
Supplemental Guarantors Consolidating Condensed Financial Information (Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | $ 29,131 | $ 67,729 |
Cash flows from investing activities: | ||
Cash invested in seismic data | (20,699) | (61,218) |
Cash paid to acquire property and equipment | (176) | (406) |
Cash from sale of property and equipment | 18 | 0 |
Advances to Seitel Holdings, Inc. | (19) | (10) |
Net cash used in investing activities | (20,876) | (61,634) |
Cash flows from financing activities: | ||
Principal payments on capital lease obligations | (152) | (168) |
Intercompany transfers | 0 | 0 |
Net cash used in financing activities | (152) | (168) |
Effect of exchange rate changes | 96 | (1,128) |
Net increase (decrease) in cash and cash equivalents | 8,199 | 4,799 |
Cash and cash equivalents at beginning of period | 52,675 | 59,175 |
Cash and cash equivalents at end of period | 60,874 | 63,974 |
Consolidation, Eliminations [Member] | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | 0 | 0 |
Cash flows from investing activities: | ||
Cash invested in seismic data | 0 | 0 |
Cash paid to acquire property and equipment | 0 | 0 |
Cash from sale of property and equipment | 0 | |
Advances to Seitel Holdings, Inc. | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Principal payments on capital lease obligations | 0 | 0 |
Intercompany transfers | 0 | 0 |
Net cash used in financing activities | 0 | 0 |
Effect of exchange rate changes | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Parent [Member] | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | (12,525) | (12,797) |
Cash flows from investing activities: | ||
Cash invested in seismic data | 0 | 0 |
Cash paid to acquire property and equipment | 0 | 0 |
Cash from sale of property and equipment | 0 | |
Advances to Seitel Holdings, Inc. | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
Cash flows from financing activities: | ||
Principal payments on capital lease obligations | 0 | 0 |
Intercompany transfers | 12,525 | 12,797 |
Net cash used in financing activities | 12,525 | 12,797 |
Effect of exchange rate changes | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Guarantor Subsidiaries [Member] | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | 35,409 | 64,937 |
Cash flows from investing activities: | ||
Cash invested in seismic data | (19,141) | (49,153) |
Cash paid to acquire property and equipment | (173) | (396) |
Cash from sale of property and equipment | 17 | |
Advances to Seitel Holdings, Inc. | (19) | (10) |
Net cash used in investing activities | (19,316) | (49,559) |
Cash flows from financing activities: | ||
Principal payments on capital lease obligations | 0 | (18) |
Intercompany transfers | (12,326) | (1,797) |
Net cash used in financing activities | (12,326) | (1,815) |
Effect of exchange rate changes | 0 | (3) |
Net increase (decrease) in cash and cash equivalents | 3,767 | 13,560 |
Cash and cash equivalents at beginning of period | 51,192 | 48,525 |
Cash and cash equivalents at end of period | 54,959 | 62,085 |
Non-Guarantor Subsidiaries [Member] | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | 6,247 | 15,589 |
Cash flows from investing activities: | ||
Cash invested in seismic data | (1,558) | (12,065) |
Cash paid to acquire property and equipment | (3) | (10) |
Cash from sale of property and equipment | 1 | |
Advances to Seitel Holdings, Inc. | 0 | 0 |
Net cash used in investing activities | (1,560) | (12,075) |
Cash flows from financing activities: | ||
Principal payments on capital lease obligations | (152) | (150) |
Intercompany transfers | (199) | (11,000) |
Net cash used in financing activities | (351) | (11,150) |
Effect of exchange rate changes | 96 | (1,125) |
Net increase (decrease) in cash and cash equivalents | 4,432 | (8,761) |
Cash and cash equivalents at beginning of period | 1,483 | 10,650 |
Cash and cash equivalents at end of period | $ 5,915 | $ 1,889 |