Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Nov. 06, 2017 | |
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, 2017 | |
Document Fiscal Year Focus | 2,017 | |
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, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 80,273 | $ 55,997 |
Receivables | ||
Trade, net of allowance for doubtful accounts of $178 and $223, respectively | 12,640 | 24,481 |
Notes and other | 338 | 436 |
Due from Seitel Holdings, Inc. | 1,188 | 1,177 |
Seismic data library, net of accumulated amortization of $1,261,343 and $1,176,828, respectively | 82,919 | 115,922 |
Property and equipment, net of accumulated depreciation and amortization of $17,214 and $16,478, respectively | 1,591 | 1,709 |
Prepaid expenses, deferred charges and other | 2,228 | 1,762 |
Intangible assets, net of accumulated amortization of $49,575 and $47,826, respectively | 900 | 1,418 |
Goodwill | 187,658 | 182,012 |
Deferred income taxes | 284 | 257 |
TOTAL ASSETS | 370,019 | 385,171 |
LIABILITIES | ||
Accounts payable and accrued liabilities | 24,675 | 17,007 |
Income taxes payable | 2,519 | 620 |
Senior Notes | 247,809 | 246,857 |
Obligations under capital leases | 1,438 | 1,510 |
Deferred revenue | 12,176 | 15,904 |
Deferred income taxes | 1,550 | 2,214 |
TOTAL LIABILITIES | 290,167 | 284,112 |
COMMITMENTS AND CONTINGENCIES (Note G) | ||
STOCKHOLDER'S EQUITY | ||
Common stock, par value $.001 per share; 100 shares authorized, issued and outstanding | 0 | 0 |
Additional paid-in capital | 400,591 | 400,582 |
Retained deficit | (312,549) | (283,190) |
Accumulated other comprehensive loss | (8,190) | (16,333) |
TOTAL STOCKHOLDER'S EQUITY | 79,852 | 101,059 |
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ 370,019 | $ 385,171 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Trade, allowance for doubtful accounts | $ 178 | $ 223 |
Notes and other, allowance for doubtful accounts | 0 | 0 |
Seismic data library, accumulated amortization | 1,261,343 | 1,176,828 |
Property and equipment, accumulated depreciation and amortization | 17,214 | 16,478 |
Intangible assets, accumulated amortization | $ 49,575 | $ 47,826 |
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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
REVENUE | $ 24,013 | $ 23,255 | $ 68,308 | $ 59,545 |
EXPENSES: | ||||
Depreciation and amortization | 17,714 | 18,933 | 61,946 | 58,839 |
Cost of sales | 31 | 22 | 74 | 55 |
Selling, general and administrative | 5,049 | 5,386 | 15,700 | 16,013 |
Total operating expenses | 22,794 | 24,341 | 77,720 | 74,907 |
INCOME (LOSS) FROM OPERATIONS | 1,219 | (1,086) | (9,412) | (15,362) |
Interest expense, net | (6,139) | (6,298) | (18,536) | (18,988) |
Foreign currency exchange gains (losses) | (3) | (20) | (88) | 143 |
Other income | 0 | 572 | 96 | 582 |
Loss before income taxes | (4,923) | (6,832) | (27,940) | (33,625) |
Provision (benefit) for income taxes | 1,421 | (1,389) | 1,419 | (5,083) |
NET LOSS | $ (6,344) | $ (5,443) | $ (29,359) | $ (28,542) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements Of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (6,344) | $ (5,443) | $ (29,359) | $ (28,542) |
Foreign currency translation adjustments | 4,752 | (861) | 8,143 | 5,575 |
Comprehensive loss | $ (1,592) | $ (6,304) | $ (21,216) | $ (22,967) |
Condensed Consolidated Stateme6
Condensed Consolidated Statement Of Stockholder's Equity - 9 months ended Sep. 30, 2017 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Deficit [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance at Dec. 31, 2016 | $ 101,059 | $ 0 | $ 400,582 | $ (283,190) | $ (16,333) |
Balance, shares at Dec. 31, 2016 | 100 | 100 | |||
Increase (Decrease) in Stockholder's Equity [Roll Forward] | |||||
Amortization of stock-based compensation costs | 9 | ||||
Net loss | $ (29,359) | (29,359) | |||
Foreign currency translation adjustments | 8,143 | 8,143 | |||
Balance at Sep. 30, 2017 | $ 79,852 | $ 0 | $ 400,591 | $ (312,549) | $ (8,190) |
Balance, shares at Sep. 30, 2017 | 100 | 100 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Reconciliation of net loss to net cash provided by operating activities: | ||
Net loss | $ (29,359) | $ (28,542) |
Depreciation and amortization | 61,946 | 58,839 |
Deferred income tax benefit | (1,172) | (5,127) |
Foreign currency exchange losses (gains) | 88 | (143) |
Amortization of deferred financing costs | 952 | 922 |
Amortization of stock-based compensation | 9 | 59 |
Decrease in allowance for doubtful accounts | 0 | (21) |
Gain on sale of seismic data and property and equipment | (96) | (7) |
Non-cash other income | 0 | (572) |
Non-cash revenue | (1,554) | (2,713) |
Decrease in receivables | 12,470 | 6,508 |
Decrease in other assets | 35 | 424 |
Decrease in deferred revenue | (3,532) | (7,244) |
Increase in accounts payable and other liabilities | 4,494 | 6,748 |
Net cash provided by operating activities | 44,281 | 29,131 |
Cash flows from investing activities: | ||
Cash invested in seismic data | (20,518) | (20,699) |
Cash paid to acquire property and equipment | (362) | (176) |
Cash from sale of property and equipment | 3 | 18 |
Advances to Seitel Holdings, Inc. | (11) | (19) |
Net cash used in investing activities | (20,888) | (20,876) |
Cash flows from financing activities: | ||
Principal payments on capital lease obligations | (178) | (152) |
Net cash used in financing activities | (178) | (152) |
Effect of exchange rate changes | 1,061 | 96 |
Net increase in cash and cash equivalents | 24,276 | 8,199 |
Cash and cash equivalents at beginning of period | 55,997 | 52,675 |
Cash and cash equivalents at end of period | 80,273 | 60,874 |
Supplemental disclosure of cash flow information: | ||
Interest | 11,974 | 12,195 |
Income taxes, net of refunds received | 774 | (7) |
Supplemental schedule of non-cash investing and financing activities: | ||
Additions to seismic data library | $ 1,250 | $ 2,640 |
Basis Of Presentation
Basis Of Presentation | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . The condensed consolidated balance sheet of the Company as of December 31, 2016 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, 2016 . |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2017 | |
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 new survey creation period, which generally correspond to costs incurred and work performed. These payments are non-refundable. Contracts signed up to the time the Company makes a firm commitment to create the new seismic survey are considered acquisition underwriting. Any subsequent license 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 new survey 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 new survey creation projects. On average, the duration of the new survey creation process is approximately 12 to 18 months. Under the contracts related to the new survey, 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 new survey creation period. A typical survey includes specific activities required to complete the survey creation, 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 to the data created from a new survey 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, each of which is subject to the terms and conditions contained in a customer’s master license agreement. • 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 the right to access a certain amount of data. The customer selects which data to access and hold long-term under its license agreement. The length of the selection period under a library card contract is limited in time and varies from customer to customer. • Review and possession license contract—The customer receives 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 each non-exclusive license contract; • 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 or, in some cases, reproduction or data processing services. 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 from a customer on selected existing data in exchange for a non-exclusive license to selected data from the Company’s library. These transactions are referred to as non-monetary exchanges. A non-monetary exchange for data always complies with the following criteria: • the data licensed to a customer is always distinct from the data received from that customer; • the customer forfeits ownership of the data received by the Company; and • the Company retains ownership in the data licensed. 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 our Seitel Solutions business unit (“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 by the Company or the fair value of the license granted or services provided to the customer, 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 that 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 2017 2016 2017 2016 Seismic data library additions $ — $ 1,618 $ 1,250 $ 2,640 Revenue recognized on specific data licenses or selections of data — 1,295 1,250 2,635 Revenue recognized related to acquisition contracts 103 54 229 78 Revenue recognized related to Solutions and other revenue 44 — 75 — 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, 2017 | |
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 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 $0.6 million and $0.7 million for the three months ended September 30, 2017 and 2016 , respectively and $2.0 million and $2.3 million for the nine months ended September 30, 2017 and 2016, respectively. 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 purchased seismic data, the Company capitalizes the purchase price of the acquired data. 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, 2017 , 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) Duvernay 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, 2017 or 2016 . |
Debt
Debt | 9 Months Ended |
Sep. 30, 2017 | |
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 Less: unamortized debt issuance costs (2,191 ) (3,143 ) $ 247,809 $ 246,857 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 100% owned U.S. 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. 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. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017: Cash equivalents $ 79,979 $ 79,979 $ — $ — At December 31, 2016: Cash equivalents $ 55,674 $ 55,674 $ — $ — The Company had no transfers of assets between any of the above levels during the nine months ended September 30, 2017 or 2016 . Cash equivalents include treasury bills and money market funds that invest in United States government obligations and Canadian investment accounts, 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, 2017 , the carrying value of the Company’s debt was $247.8 million , net of $2.2 million of unamortized debt issuance costs. At December 31, 2016, the carrying value was $246.9 million , net of $3.1 million of unamortized debt issuance costs. The estimated fair value of the debt was approximately $254.4 million at September 30, 2017 and $232.6 million at December 31, 2016. 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, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Statement Of Cash Flow Information | STATEMENT OF CASH FLOW INFORMATION Cash and cash equivalents at September 30, 2017 and December 31, 2016 included $0.6 million and $0.5 million , respectively of restricted cash related to collateral on seismic operations bonds. The balance at September 30, 2017 also included $0.2 million of restricted cash related to proceeds from broker sales held in escrow by the Company for specific use by an E&P client. For purposes of the statement of cash flows, the Company considers all highly liquid investments or debt instruments with an original maturity of three months or less to be cash equivalents. The Company maintains its day-to-day operating cash and temporary excess cash with various banking institutions that, in turn, invest in time deposits and U.S. Treasury bills. The Company had non-cash additions to its seismic data library comprised of the following (in thousands): Nine Months Ended 2017 2016 Non-monetary exchanges related to resale licensing $ 1,250 $ 1,840 Non-monetary exchanges from underwriting of new data acquisition — 408 Non-monetary exchanges related to data processing and reproduction services — 392 $ 1,250 $ 2,640 Non-cash revenue consisted of the following (in thousands): Nine Months Ended 2017 2016 Acquisition revenue on underwriting from non-monetary exchange contracts $ 229 $ 78 Licensing revenue from specific data licenses and selections on non-monetary exchange contracts 1,250 2,635 Solutions and other revenue recognized from non-monetary exchange contracts 75 — Total non-cash revenue $ 1,554 $ 2,713 |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 , 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, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The objective of the ASU is to establish a single comprehensive model of 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. Entities have the option of using either a full retrospective or modified retrospective approach to adopt the new guidance. The Company will utilize the modified retrospective approach when adopting the new revenue recognition guidance effective January 1, 2018 which will result in the application of the new guidance retrospectively with the cumulative effect of adoption recognized at January 1, 2018. The Company has completed its review of its different types of customer contracts and has compared its current revenue recognition policies to the provisions of the new standard for each of its revenue categories, noting no change with regard to its accounting for revenue from data acquisition, revenue from non-monetary exchanges and revenue from Solutions and other. With regard to revenue from non-exclusive data licenses (resale licensing revenue), no changes from the Company’s current accounting policies were identified other than with regard to new licenses of data while a survey is in the process of being created, in which the resale licensing customer is granted the same legally enforceable rights and access to and use of the results of the acquisition work performed as the original acquisition underwriting clients. Currently, the Company recognizes revenue on these resale licenses when the data is available for delivery; however, upon application of the new guidance, the Company will recognize revenue during the remaining survey creation period. This will result in revenue being recognized earlier than under the Company’s current policy. As of September 30, 2017, the Company has approximately $0.2 million in deferred revenue that is expected to be recognized upon adoption of the new guidance effective January 1, 2018. The Company has not completed its review of the disclosure requirements under the new standard but expects that its current disclosures will be expanded. The Company will be ready for adoption of the new standard effective January 1, 2018. 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 adopting this new standard on its consolidated financial statements as of January 1, 2019 and believes that the most significant change will be to the Company's balance sheet as its asset and liability balances will increase for operating leases that are currently off-balance sheet. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” in order to simplify the measurement of goodwill impairment by eliminating Step 2 from the goodwill impairment test. Currently, Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities following the same procedure that would be required for purchase price allocation in a business combination. Under the amendments in this ASU, a goodwill impairment loss will be measured using the difference between the carrying amount and the fair value of the reporting unit limited to the total carrying amount of that reporting unit’s goodwill. The guidance in this ASU also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. However, entities must disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount. The amendments in this ASU are to be applied on a prospective basis and will be effective for the Company as of January 1, 2020, but early adoption is permitted for any impairment tests performed after January 1, 2017. The Company is currently evaluating the impact of adopting this new standard but does not expect that it will have a material effect on its consolidated financial statements. |
Supplemental Guarantors Consoli
Supplemental Guarantors Consolidating Condensed Financial Information | 9 Months Ended |
Sep. 30, 2017 | |
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 on a senior basis 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, 2017 and December 31, 2016 , the consolidating condensed statements of operations and statements of comprehensive income (loss) for the three and nine months ended September 30, 2017 and September 30, 2016 and the consolidating condensed statements of cash flows for the nine months ended September 30, 2017 and 2016 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, 2017 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total ASSETS Cash and cash equivalents $ — $ 55,172 $ 25,101 $ — $ 80,273 Receivables Trade, net — 10,258 2,382 — 12,640 Notes and other — 48 290 — 338 Due from Seitel Holdings, Inc. — 1,188 — — 1,188 Intercompany receivables (payables) (63,673 ) 61,602 2,071 — — Investment in subsidiaries 409,475 425,303 649 (835,427 ) — Net seismic data library — 65,920 16,999 — 82,919 Net property and equipment — 522 1,069 — 1,591 Prepaid expenses, deferred charges and other 94 1,225 909 — 2,228 Intangible assets, net 900 — — — 900 Goodwill — 107,688 79,970 — 187,658 Deferred income taxes — 99 185 — 284 TOTAL ASSETS $ 346,796 $ 729,025 $ 129,625 $ (835,427 ) $ 370,019 LIABILITIES AND STOCKHOLDER’S EQUITY LIABILITIES Accounts payable and accrued liabilities $ 10,945 $ 11,468 $ 2,262 $ — $ 24,675 Income taxes payable — 24 2,495 — 2,519 Senior Notes 247,809 — — — 247,809 Obligations under capital leases — — 1,438 — 1,438 Deferred revenue — 10,344 1,832 — 12,176 Deferred income taxes — — 1,550 — 1,550 TOTAL LIABILITIES 258,754 21,836 9,577 — 290,167 STOCKHOLDER’S EQUITY Common stock — — — — — Additional paid-in capital 400,591 — — — 400,591 Parent investment — 764,105 156,728 (920,833 ) — Retained deficit (312,549 ) (56,916 ) (28,138 ) 85,054 (312,549 ) Accumulated other comprehensive loss — — (8,542 ) 352 (8,190 ) TOTAL STOCKHOLDER’S EQUITY 88,042 707,189 120,048 (835,427 ) 79,852 TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY $ 346,796 $ 729,025 $ 129,625 $ (835,427 ) $ 370,019 CONSOLIDATING CONDENSED BALANCE SHEET As of December 31, 2016 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total ASSETS Cash and cash equivalents $ — $ 47,971 $ 8,026 $ — $ 55,997 Receivables Trade, net — 14,819 9,662 — 24,481 Notes and other — 412 24 — 436 Due from Seitel Holdings, Inc. — 1,177 — — 1,177 Intercompany receivables (payables) (51,982 ) 51,262 720 — — Investment in subsidiaries 420,308 420,456 630 (841,394 ) — Net seismic data library — 94,039 21,907 (24 ) 115,922 Net property and equipment — 611 1,098 — 1,709 Prepaid expenses, deferred charges and other 30 1,413 319 — 1,762 Intangible assets, net 900 402 116 — 1,418 Goodwill — 107,688 74,324 — 182,012 Deferred income taxes — 92 165 — 257 TOTAL ASSETS $ 369,256 $ 740,342 $ 116,991 $ (841,418 ) $ 385,171 LIABILITIES AND STOCKHOLDER’S EQUITY LIABILITIES Accounts payable and accrued liabilities $ 5,007 $ 8,559 $ 3,441 $ — $ 17,007 Income taxes payable — 24 596 — 620 Senior Notes 246,857 — — — 246,857 Obligations under capital leases — — 1,510 — 1,510 Deferred revenue — 13,574 2,330 — 15,904 Deferred income taxes — — 2,214 — 2,214 TOTAL LIABILITIES 251,864 22,157 10,091 — 284,112 STOCKHOLDER’S EQUITY Common stock — — — — — Additional paid-in capital 400,582 — — — 400,582 Parent investment — 764,105 156,594 (920,699 ) — Retained deficit (283,190 ) (45,920 ) (33,120 ) 79,040 (283,190 ) Accumulated other comprehensive loss — — (16,574 ) 241 (16,333 ) TOTAL STOCKHOLDER’S EQUITY 117,392 718,185 106,900 (841,418 ) 101,059 TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY $ 369,256 $ 740,342 $ 116,991 $ (841,418 ) $ 385,171 CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS For the Three Months Ended September 30, 2017 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total REVENUE $ — $ 13,148 $ 11,405 $ (540 ) $ 24,013 EXPENSES: Depreciation and amortization — 14,011 3,703 — 17,714 Cost of sales — 244 1 (214 ) 31 Selling, general and administrative 169 3,916 1,290 (326 ) 5,049 169 18,171 4,994 (540 ) 22,794 INCOME (LOSS) FROM OPERATIONS (169 ) (5,023 ) 6,411 — 1,219 Interest income (expense), net (6,046 ) (142 ) 49 — (6,139 ) Foreign currency exchange losses — (2 ) (1 ) — (3 ) Income (loss) before income taxes and equity in income (loss) of subsidiaries (6,215 ) (5,167 ) 6,459 — (4,923 ) Provision (benefit) for income taxes — (5 ) 1,426 — 1,421 Equity in income (loss) of subsidiaries (129 ) 5,033 — (4,904 ) — NET INCOME (LOSS) $ (6,344 ) $ (129 ) $ 5,033 $ (4,904 ) $ (6,344 ) CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS) For the Three Months Ended September 30, 2017 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Net income (loss) $ (6,344 ) $ (129 ) $ 5,033 $ (4,904 ) $ (6,344 ) Foreign currency translation adjustments — — 4,752 — 4,752 Comprehensive income (loss) $ (6,344 ) $ (129 ) $ 9,785 $ (4,904 ) $ (1,592 ) 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 Nine Months Ended September 30, 2017 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total REVENUE $ — $ 46,241 $ 23,549 $ (1,482 ) $ 68,308 EXPENSES: Depreciation and amortization — 48,493 13,478 (25 ) 61,946 Cost of sales — 571 7 (504 ) 74 Selling, general and administrative 429 12,553 3,696 (978 ) 15,700 429 61,617 17,181 (1,507 ) 77,720 INCOME (LOSS) FROM OPERATIONS (429 ) (15,376 ) 6,368 25 (9,412 ) Interest income (expense), net (17,959 ) (608 ) 31 — (18,536 ) Foreign currency exchange losses — — (88 ) — (88 ) Other income — — 96 — 96 Income (loss) before income taxes and equity in income (loss) of subsidiaries (18,388 ) (15,984 ) 6,407 25 (27,940 ) Provision (benefit) for income taxes — (6 ) 1,425 — 1,419 Equity in income (loss) of subsidiaries (10,971 ) 4,982 — 5,989 — NET INCOME (LOSS) $ (29,359 ) $ (10,996 ) $ 4,982 $ 6,014 $ (29,359 ) CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS) For the Nine Months Ended September 30, 2017 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Net income (loss) $ (29,359 ) $ (10,996 ) $ 4,982 $ 6,014 $ (29,359 ) Foreign currency translation adjustments — — 8,032 111 8,143 Comprehensive income (loss) $ (29,359 ) $ (10,996 ) $ 13,014 $ 6,125 $ (21,216 ) 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 CASH FLOWS For the Nine Months Ended September 30, 2017 (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 $ (12,325 ) $ 32,878 $ 23,728 $ — $ 44,281 Cash flows from investing activities: Cash invested in seismic data — (13,081 ) (7,437 ) — (20,518 ) Cash paid to acquire property and equipment — (260 ) (102 ) — (362 ) Cash from sale of property and equipment — — 3 — 3 Advances to Seitel Holdings, Inc. — (11 ) — — (11 ) Net cash used in investing activities — (13,352 ) (7,536 ) — (20,888 ) Cash flows from financing activities: Principal payments on capital lease obligations — — (178 ) — (178 ) Intercompany transfers 12,325 (12,325 ) — — — Net cash provided by (used in) financing activities 12,325 (12,325 ) (178 ) — (178 ) Effect of exchange rate changes — — 1,061 — 1,061 Net increase in cash and cash equivalents — 7,201 17,075 — 24,276 Cash and cash equivalents at beginning of period — 47,971 8,026 — 55,997 Cash and cash equivalents at end of period $ — $ 55,172 $ 25,101 $ — $ 80,273 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 |
Basis Of Presentation Organizat
Basis Of Presentation Organization, Consolidation and Presentation of Financial Statements (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017 . The condensed consolidated balance sheet of the Company as of December 31, 2016 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, 2016 . |
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 new survey creation period, which generally correspond to costs incurred and work performed. These payments are non-refundable. Contracts signed up to the time the Company makes a firm commitment to create the new seismic survey are considered acquisition underwriting. Any subsequent license 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 new survey 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 new survey creation projects. On average, the duration of the new survey creation process is approximately 12 to 18 months. Under the contracts related to the new survey, 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 new survey creation period. A typical survey includes specific activities required to complete the survey creation, 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 to the data created from a new survey 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, each of which is subject to the terms and conditions contained in a customer’s master license agreement. • 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 the right to access a certain amount of data. The customer selects which data to access and hold long-term under its license agreement. The length of the selection period under a library card contract is limited in time and varies from customer to customer. • Review and possession license contract—The customer receives 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 each non-exclusive license contract; • 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 or, in some cases, reproduction or data processing services. 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 from a customer on selected existing data in exchange for a non-exclusive license to selected data from the Company’s library. These transactions are referred to as non-monetary exchanges. A non-monetary exchange for data always complies with the following criteria: • the data licensed to a customer is always distinct from the data received from that customer; • the customer forfeits ownership of the data received by the Company; and • the Company retains ownership in the data licensed. 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 our Seitel Solutions business unit (“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 by the Company or the fair value of the license granted or services provided to the customer, 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 that 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 2017 2016 2017 2016 Seismic data library additions $ — $ 1,618 $ 1,250 $ 2,640 Revenue recognized on specific data licenses or selections of data — 1,295 1,250 2,635 Revenue recognized related to acquisition contracts 103 54 229 78 Revenue recognized related to Solutions and other revenue 44 — 75 — 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 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 $0.6 million and $0.7 million for the three months ended September 30, 2017 and 2016 , respectively and $2.0 million and $2.3 million for the nine months ended September 30, 2017 and 2016, respectively. 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 purchased seismic data, the Company capitalizes the purchase price of the acquired data. 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, 2017 , 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) Duvernay 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, 2017 or 2016 . |
Recent Accounting Pronouncements | In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The objective of the ASU is to establish a single comprehensive model of 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. Entities have the option of using either a full retrospective or modified retrospective approach to adopt the new guidance. The Company will utilize the modified retrospective approach when adopting the new revenue recognition guidance effective January 1, 2018 which will result in the application of the new guidance retrospectively with the cumulative effect of adoption recognized at January 1, 2018. The Company has completed its review of its different types of customer contracts and has compared its current revenue recognition policies to the provisions of the new standard for each of its revenue categories, noting no change with regard to its accounting for revenue from data acquisition, revenue from non-monetary exchanges and revenue from Solutions and other. With regard to revenue from non-exclusive data licenses (resale licensing revenue), no changes from the Company’s current accounting policies were identified other than with regard to new licenses of data while a survey is in the process of being created, in which the resale licensing customer is granted the same legally enforceable rights and access to and use of the results of the acquisition work performed as the original acquisition underwriting clients. Currently, the Company recognizes revenue on these resale licenses when the data is available for delivery; however, upon application of the new guidance, the Company will recognize revenue during the remaining survey creation period. This will result in revenue being recognized earlier than under the Company’s current policy. As of September 30, 2017, the Company has approximately $0.2 million in deferred revenue that is expected to be recognized upon adoption of the new guidance effective January 1, 2018. The Company has not completed its review of the disclosure requirements under the new standard but expects that its current disclosures will be expanded. The Company will be ready for adoption of the new standard effective January 1, 2018. 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 adopting this new standard on its consolidated financial statements as of January 1, 2019 and believes that the most significant change will be to the Company's balance sheet as its asset and liability balances will increase for operating leases that are currently off-balance sheet. In January 2017, the FASB issued ASU No. 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” in order to simplify the measurement of goodwill impairment by eliminating Step 2 from the goodwill impairment test. Currently, Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. In computing the implied fair value of goodwill under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities following the same procedure that would be required for purchase price allocation in a business combination. Under the amendments in this ASU, a goodwill impairment loss will be measured using the difference between the carrying amount and the fair value of the reporting unit limited to the total carrying amount of that reporting unit’s goodwill. The guidance in this ASU also eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. However, entities must disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount. The amendments in this ASU are to be applied on a prospective basis and will be effective for the Company as of January 1, 2020, but early adoption is permitted for any impairment tests performed after January 1, 2017. The Company is currently evaluating the impact of adopting this new standard but does not expect that it will have a material effect on its consolidated financial statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 that 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 2017 2016 2017 2016 Seismic data library additions $ — $ 1,618 $ 1,250 $ 2,640 Revenue recognized on specific data licenses or selections of data — 1,295 1,250 2,635 Revenue recognized related to acquisition contracts 103 54 229 78 Revenue recognized related to Solutions and other revenue 44 — 75 — |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 Less: unamortized debt issuance costs (2,191 ) (3,143 ) $ 247,809 $ 246,857 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017: Cash equivalents $ 79,979 $ 79,979 $ — $ — At December 31, 2016: Cash equivalents $ 55,674 $ 55,674 $ — $ — |
Statement Of Cash Flow Inform21
Statement Of Cash Flow Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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 2017 2016 Non-monetary exchanges related to resale licensing $ 1,250 $ 1,840 Non-monetary exchanges from underwriting of new data acquisition — 408 Non-monetary exchanges related to data processing and reproduction services — 392 $ 1,250 $ 2,640 |
Schedule of Non-Cash Revenue | Non-cash revenue consisted of the following (in thousands): Nine Months Ended 2017 2016 Acquisition revenue on underwriting from non-monetary exchange contracts $ 229 $ 78 Licensing revenue from specific data licenses and selections on non-monetary exchange contracts 1,250 2,635 Solutions and other revenue recognized from non-monetary exchange contracts 75 — Total non-cash revenue $ 1,554 $ 2,713 |
Supplemental Guarantors Conso22
Supplemental Guarantors Consolidating Condensed Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Supplemental Guarantors Consolidating Condensed Financial Information [Abstract] | |
Schedule of Condensed Balance Sheet [Table Text Block] | CONSOLIDATING CONDENSED BALANCE SHEET As of September 30, 2017 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total ASSETS Cash and cash equivalents $ — $ 55,172 $ 25,101 $ — $ 80,273 Receivables Trade, net — 10,258 2,382 — 12,640 Notes and other — 48 290 — 338 Due from Seitel Holdings, Inc. — 1,188 — — 1,188 Intercompany receivables (payables) (63,673 ) 61,602 2,071 — — Investment in subsidiaries 409,475 425,303 649 (835,427 ) — Net seismic data library — 65,920 16,999 — 82,919 Net property and equipment — 522 1,069 — 1,591 Prepaid expenses, deferred charges and other 94 1,225 909 — 2,228 Intangible assets, net 900 — — — 900 Goodwill — 107,688 79,970 — 187,658 Deferred income taxes — 99 185 — 284 TOTAL ASSETS $ 346,796 $ 729,025 $ 129,625 $ (835,427 ) $ 370,019 LIABILITIES AND STOCKHOLDER’S EQUITY LIABILITIES Accounts payable and accrued liabilities $ 10,945 $ 11,468 $ 2,262 $ — $ 24,675 Income taxes payable — 24 2,495 — 2,519 Senior Notes 247,809 — — — 247,809 Obligations under capital leases — — 1,438 — 1,438 Deferred revenue — 10,344 1,832 — 12,176 Deferred income taxes — — 1,550 — 1,550 TOTAL LIABILITIES 258,754 21,836 9,577 — 290,167 STOCKHOLDER’S EQUITY Common stock — — — — — Additional paid-in capital 400,591 — — — 400,591 Parent investment — 764,105 156,728 (920,833 ) — Retained deficit (312,549 ) (56,916 ) (28,138 ) 85,054 (312,549 ) Accumulated other comprehensive loss — — (8,542 ) 352 (8,190 ) TOTAL STOCKHOLDER’S EQUITY 88,042 707,189 120,048 (835,427 ) 79,852 TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY $ 346,796 $ 729,025 $ 129,625 $ (835,427 ) $ 370,019 CONSOLIDATING CONDENSED BALANCE SHEET As of December 31, 2016 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total ASSETS Cash and cash equivalents $ — $ 47,971 $ 8,026 $ — $ 55,997 Receivables Trade, net — 14,819 9,662 — 24,481 Notes and other — 412 24 — 436 Due from Seitel Holdings, Inc. — 1,177 — — 1,177 Intercompany receivables (payables) (51,982 ) 51,262 720 — — Investment in subsidiaries 420,308 420,456 630 (841,394 ) — Net seismic data library — 94,039 21,907 (24 ) 115,922 Net property and equipment — 611 1,098 — 1,709 Prepaid expenses, deferred charges and other 30 1,413 319 — 1,762 Intangible assets, net 900 402 116 — 1,418 Goodwill — 107,688 74,324 — 182,012 Deferred income taxes — 92 165 — 257 TOTAL ASSETS $ 369,256 $ 740,342 $ 116,991 $ (841,418 ) $ 385,171 LIABILITIES AND STOCKHOLDER’S EQUITY LIABILITIES Accounts payable and accrued liabilities $ 5,007 $ 8,559 $ 3,441 $ — $ 17,007 Income taxes payable — 24 596 — 620 Senior Notes 246,857 — — — 246,857 Obligations under capital leases — — 1,510 — 1,510 Deferred revenue — 13,574 2,330 — 15,904 Deferred income taxes — — 2,214 — 2,214 TOTAL LIABILITIES 251,864 22,157 10,091 — 284,112 STOCKHOLDER’S EQUITY Common stock — — — — — Additional paid-in capital 400,582 — — — 400,582 Parent investment — 764,105 156,594 (920,699 ) — Retained deficit (283,190 ) (45,920 ) (33,120 ) 79,040 (283,190 ) Accumulated other comprehensive loss — — (16,574 ) 241 (16,333 ) TOTAL STOCKHOLDER’S EQUITY 117,392 718,185 106,900 (841,418 ) 101,059 TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY $ 369,256 $ 740,342 $ 116,991 $ (841,418 ) $ 385,171 |
Schedule of Condensed Income Statement [Table Text Block] | CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS For the Three Months Ended September 30, 2017 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total REVENUE $ — $ 13,148 $ 11,405 $ (540 ) $ 24,013 EXPENSES: Depreciation and amortization — 14,011 3,703 — 17,714 Cost of sales — 244 1 (214 ) 31 Selling, general and administrative 169 3,916 1,290 (326 ) 5,049 169 18,171 4,994 (540 ) 22,794 INCOME (LOSS) FROM OPERATIONS (169 ) (5,023 ) 6,411 — 1,219 Interest income (expense), net (6,046 ) (142 ) 49 — (6,139 ) Foreign currency exchange losses — (2 ) (1 ) — (3 ) Income (loss) before income taxes and equity in income (loss) of subsidiaries (6,215 ) (5,167 ) 6,459 — (4,923 ) Provision (benefit) for income taxes — (5 ) 1,426 — 1,421 Equity in income (loss) of subsidiaries (129 ) 5,033 — (4,904 ) — NET INCOME (LOSS) $ (6,344 ) $ (129 ) $ 5,033 $ (4,904 ) $ (6,344 ) CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS) For the Three Months Ended September 30, 2017 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Net income (loss) $ (6,344 ) $ (129 ) $ 5,033 $ (4,904 ) $ (6,344 ) Foreign currency translation adjustments — — 4,752 — 4,752 Comprehensive income (loss) $ (6,344 ) $ (129 ) $ 9,785 $ (4,904 ) $ (1,592 ) 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 Nine Months Ended September 30, 2017 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total REVENUE $ — $ 46,241 $ 23,549 $ (1,482 ) $ 68,308 EXPENSES: Depreciation and amortization — 48,493 13,478 (25 ) 61,946 Cost of sales — 571 7 (504 ) 74 Selling, general and administrative 429 12,553 3,696 (978 ) 15,700 429 61,617 17,181 (1,507 ) 77,720 INCOME (LOSS) FROM OPERATIONS (429 ) (15,376 ) 6,368 25 (9,412 ) Interest income (expense), net (17,959 ) (608 ) 31 — (18,536 ) Foreign currency exchange losses — — (88 ) — (88 ) Other income — — 96 — 96 Income (loss) before income taxes and equity in income (loss) of subsidiaries (18,388 ) (15,984 ) 6,407 25 (27,940 ) Provision (benefit) for income taxes — (6 ) 1,425 — 1,419 Equity in income (loss) of subsidiaries (10,971 ) 4,982 — 5,989 — NET INCOME (LOSS) $ (29,359 ) $ (10,996 ) $ 4,982 $ 6,014 $ (29,359 ) CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS) For the Nine Months Ended September 30, 2017 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Net income (loss) $ (29,359 ) $ (10,996 ) $ 4,982 $ 6,014 $ (29,359 ) Foreign currency translation adjustments — — 8,032 111 8,143 Comprehensive income (loss) $ (29,359 ) $ (10,996 ) $ 13,014 $ 6,125 $ (21,216 ) 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 ) |
Schedule of Condensed Cash Flow Statement [Table Text Block] | CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS For the Nine Months Ended September 30, 2017 (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 $ (12,325 ) $ 32,878 $ 23,728 $ — $ 44,281 Cash flows from investing activities: Cash invested in seismic data — (13,081 ) (7,437 ) — (20,518 ) Cash paid to acquire property and equipment — (260 ) (102 ) — (362 ) Cash from sale of property and equipment — — 3 — 3 Advances to Seitel Holdings, Inc. — (11 ) — — (11 ) Net cash used in investing activities — (13,352 ) (7,536 ) — (20,888 ) Cash flows from financing activities: Principal payments on capital lease obligations — — (178 ) — (178 ) Intercompany transfers 12,325 (12,325 ) — — — Net cash provided by (used in) financing activities 12,325 (12,325 ) (178 ) — (178 ) Effect of exchange rate changes — — 1,061 — 1,061 Net increase in cash and cash equivalents — 7,201 17,075 — 24,276 Cash and cash equivalents at beginning of period — 47,971 8,026 — 55,997 Cash and cash equivalents at end of period $ — $ 55,172 $ 25,101 $ — $ 80,273 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 |
Revenue Recognition (Revenue fr
Revenue Recognition (Revenue from Data Acquisition) (Details) | 9 Months Ended |
Sep. 30, 2017 | |
Minimum [Member] | |
Revenue from External Customer [Line Items] | |
Average Duration of the Data Creation Process | 12 months |
Maximum [Member] | |
Revenue from External Customer [Line Items] | |
Average Duration of the Data Creation Process | 18 months |
Revenue Recognition (Revenue 24
Revenue Recognition (Revenue from Non-Exclusive Data Licenses) (Details) | 9 Months Ended |
Sep. 30, 2017 | |
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 25
Revenue Recognition (Revenue from Non-Monetary Exchanges) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Nonmonetary Transaction | ||||
Seismic data library additions | $ 1,250 | $ 2,640 | ||
Non-cash revenue | 1,554 | 2,713 | ||
Specific Data Licenses or Selections of Data [Member] | ||||
Nonmonetary Transaction | ||||
Non-cash revenue | $ 0 | $ 1,295 | 1,250 | 2,635 |
Acquisition Contracts [Member] | ||||
Nonmonetary Transaction | ||||
Non-cash revenue | 103 | 54 | 229 | 78 |
Solutions and other revenue [Member] | ||||
Nonmonetary Transaction | ||||
Non-cash revenue | 44 | 0 | 75 | 0 |
Seismic Data Library [Member] | ||||
Nonmonetary Transaction | ||||
Seismic data library additions | $ 0 | $ 1,618 | $ 1,250 | $ 2,640 |
Seismic Data Library (Details)
Seismic Data Library (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Oct. 01, 2017 | |
Seismic Data Library | |||||
Straight-line amortization period | 4 years | ||||
Internal data processing costs capitalized | $ 600 | $ 700 | $ 2,000 | $ 2,300 | |
Lowest amortization rate using the income forecast method | 70.00% | ||||
Actual aggregate rate of amortization | 70.00% | ||||
Asset impairment charges | $ 0 | $ 0 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016 | Mar. 20, 2013 | |
Debt Instrument [Line Items] | |||
9½% Senior Notes | $ 250,000 | $ 250,000 | |
Unamortized debt issuance costs | (2,191) | (3,143) | |
Senior Notes, net of unamortized debt issuance costs | $ 247,809 | $ 246,857 | |
Senior Notes [Member] | 9½% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of senior notes | $ 250,000 | ||
Interest rate of senior notes | 9.50% | ||
Call premium | 101.00% |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | $ 79,979 | $ 55,674 |
Quoted Prices in Active Markets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 79,979 | 55,674 |
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, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Unamortized debt issuance costs | $ 2,191 | $ 3,143 |
Book Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Senior Notes | 247,800 | 246,900 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Senior Notes | $ 254,400 | $ 232,600 |
Statement Of Cash Flow Inform30
Statement Of Cash Flow Information (Restricted Cash) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Seismic Operations Bonds [Member] | ||
Restricted Cash and Cash Equivalents Items | ||
Restricted cash | $ 0.6 | $ 0.5 |
Proceeds from Broker Sales Held in Escrow for Specific Use by an E&P Client [Member] | ||
Restricted Cash and Cash Equivalents Items | ||
Restricted cash | $ 0.2 |
Statement Of Cash Flow Inform31
Statement Of Cash Flow Information (Non-Cash Additions and Non-Cash Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Nonmonetary Transaction | ||||
Non-monetary exchanges related to resale licensing revenue | $ 1,250 | $ 1,840 | ||
Non-monetary exchanges from underwriting of new data acquisition | 0 | 408 | ||
Non-monetary exchanges related to data processing and reproduction services | 0 | 392 | ||
Total non-cash additions to seismic data library | 1,250 | 2,640 | ||
Non-cash revenue | 1,554 | 2,713 | ||
Acquisition revenue on underwriting [Member] | ||||
Nonmonetary Transaction | ||||
Non-cash revenue | $ 103 | $ 54 | 229 | 78 |
Licensing revenue from specific data licenses and selections [Member] | ||||
Nonmonetary Transaction | ||||
Non-cash revenue | 0 | 1,295 | 1,250 | 2,635 |
Solutions and other revenue recognized [Member] | ||||
Nonmonetary Transaction | ||||
Non-cash revenue | $ 44 | $ 0 | $ 75 | $ 0 |
Recent Accounting Pronounceme32
Recent Accounting Pronouncements Revenue from Contracts with Customers (Topic 606) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 0.2 |
Supplemental Guarantors Conso33
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 Conso34
Supplemental Guarantors Consolidating Condensed Financial Information (Balance Sheet) (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
ASSETS | ||||
Cash and cash equivalents | $ 80,273 | $ 55,997 | $ 60,874 | $ 52,675 |
Receivables | ||||
Trade, net | 12,640 | 24,481 | ||
Notes and other | 338 | 436 | ||
Due from Seitel Holdings, Inc. | 1,188 | 1,177 | ||
Intercompany receivables (payables) | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Net seismic data library | 82,919 | 115,922 | ||
Net property and equipment | 1,591 | 1,709 | ||
Prepaid expenses, deferred charges and other | 2,228 | 1,762 | ||
Intangible assets, net | 900 | 1,418 | ||
Goodwill | 187,658 | 182,012 | ||
Deferred income taxes | 284 | 257 | ||
TOTAL ASSETS | 370,019 | 385,171 | ||
LIABILITIES | ||||
Accounts payable and accrued liabilities | 24,675 | 17,007 | ||
Income taxes payable | 2,519 | 620 | ||
Senior Notes | 247,809 | 246,857 | ||
Obligations under capital leases | 1,438 | 1,510 | ||
Deferred revenue | 12,176 | 15,904 | ||
Deferred income taxes | 1,550 | 2,214 | ||
TOTAL LIABILITIES | 290,167 | 284,112 | ||
STOCKHOLDER'S EQUITY | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 400,591 | 400,582 | ||
Parent investment | 0 | 0 | ||
Retained deficit | (312,549) | (283,190) | ||
Accumulated other comprehensive loss | (8,190) | (16,333) | ||
TOTAL STOCKHOLDER'S EQUITY | 79,852 | 101,059 | ||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | 370,019 | 385,171 | ||
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 | (835,427) | (841,394) | ||
Net seismic data library | 0 | (24) | ||
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 | (835,427) | (841,418) | ||
LIABILITIES | ||||
Accounts payable and accrued liabilities | 0 | 0 | ||
Income taxes payable | 0 | 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 | (920,833) | (920,699) | ||
Retained deficit | 85,054 | 79,040 | ||
Accumulated other comprehensive loss | 352 | 241 | ||
TOTAL STOCKHOLDER'S EQUITY | (835,427) | (841,418) | ||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | (835,427) | (841,418) | ||
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) | (63,673) | (51,982) | ||
Investment in subsidiaries | 409,475 | 420,308 | ||
Net seismic data library | 0 | 0 | ||
Net property and equipment | 0 | 0 | ||
Prepaid expenses, deferred charges and other | 94 | 30 | ||
Intangible assets, net | 900 | 900 | ||
Goodwill | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
TOTAL ASSETS | 346,796 | 369,256 | ||
LIABILITIES | ||||
Accounts payable and accrued liabilities | 10,945 | 5,007 | ||
Income taxes payable | 0 | 0 | ||
Senior Notes | 247,809 | 246,857 | ||
Obligations under capital leases | 0 | 0 | ||
Deferred revenue | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
TOTAL LIABILITIES | 258,754 | 251,864 | ||
STOCKHOLDER'S EQUITY | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 400,591 | 400,582 | ||
Parent investment | 0 | 0 | ||
Retained deficit | (312,549) | (283,190) | ||
Accumulated other comprehensive loss | 0 | 0 | ||
TOTAL STOCKHOLDER'S EQUITY | 88,042 | 117,392 | ||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | 346,796 | 369,256 | ||
Guarantor Subsidiaries [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 55,172 | 47,971 | 54,959 | 51,192 |
Receivables | ||||
Trade, net | 10,258 | 14,819 | ||
Notes and other | 48 | 412 | ||
Due from Seitel Holdings, Inc. | 1,188 | 1,177 | ||
Intercompany receivables (payables) | 61,602 | 51,262 | ||
Investment in subsidiaries | 425,303 | 420,456 | ||
Net seismic data library | 65,920 | 94,039 | ||
Net property and equipment | 522 | 611 | ||
Prepaid expenses, deferred charges and other | 1,225 | 1,413 | ||
Intangible assets, net | 0 | 402 | ||
Goodwill | 107,688 | 107,688 | ||
Deferred income taxes | 99 | 92 | ||
TOTAL ASSETS | 729,025 | 740,342 | ||
LIABILITIES | ||||
Accounts payable and accrued liabilities | 11,468 | 8,559 | ||
Income taxes payable | 24 | 24 | ||
Senior Notes | 0 | 0 | ||
Obligations under capital leases | 0 | 0 | ||
Deferred revenue | 10,344 | 13,574 | ||
Deferred income taxes | 0 | 0 | ||
TOTAL LIABILITIES | 21,836 | 22,157 | ||
STOCKHOLDER'S EQUITY | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 0 | 0 | ||
Parent investment | 764,105 | 764,105 | ||
Retained deficit | (56,916) | (45,920) | ||
Accumulated other comprehensive loss | 0 | 0 | ||
TOTAL STOCKHOLDER'S EQUITY | 707,189 | 718,185 | ||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | 729,025 | 740,342 | ||
Non-Guarantor Subsidiaries [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 25,101 | 8,026 | $ 5,915 | $ 1,483 |
Receivables | ||||
Trade, net | 2,382 | 9,662 | ||
Notes and other | 290 | 24 | ||
Due from Seitel Holdings, Inc. | 0 | 0 | ||
Intercompany receivables (payables) | 2,071 | 720 | ||
Investment in subsidiaries | 649 | 630 | ||
Net seismic data library | 16,999 | 21,907 | ||
Net property and equipment | 1,069 | 1,098 | ||
Prepaid expenses, deferred charges and other | 909 | 319 | ||
Intangible assets, net | 0 | 116 | ||
Goodwill | 79,970 | 74,324 | ||
Deferred income taxes | 185 | 165 | ||
TOTAL ASSETS | 129,625 | 116,991 | ||
LIABILITIES | ||||
Accounts payable and accrued liabilities | 2,262 | 3,441 | ||
Income taxes payable | 2,495 | 596 | ||
Senior Notes | 0 | 0 | ||
Obligations under capital leases | 1,438 | 1,510 | ||
Deferred revenue | 1,832 | 2,330 | ||
Deferred income taxes | 1,550 | 2,214 | ||
TOTAL LIABILITIES | 9,577 | 10,091 | ||
STOCKHOLDER'S EQUITY | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 0 | 0 | ||
Parent investment | 156,728 | 156,594 | ||
Retained deficit | (28,138) | (33,120) | ||
Accumulated other comprehensive loss | (8,542) | (16,574) | ||
TOTAL STOCKHOLDER'S EQUITY | 120,048 | 106,900 | ||
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY | $ 129,625 | $ 116,991 |
Supplemental Guarantors Conso35
Supplemental Guarantors Consolidating Condensed Financial Information (Statement of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Condensed Financial Statements, Captions | ||||
REVENUE | $ 24,013 | $ 23,255 | $ 68,308 | $ 59,545 |
EXPENSES: | ||||
Depreciation and amortization | 17,714 | 18,933 | 61,946 | 58,839 |
Cost of sales | 31 | 22 | 74 | 55 |
Selling, general and administrative | 5,049 | 5,386 | 15,700 | 16,013 |
Total operating expenses | 22,794 | 24,341 | 77,720 | 74,907 |
INCOME (LOSS) FROM OPERATIONS | 1,219 | (1,086) | (9,412) | (15,362) |
Interest income (expense), net | (6,139) | (6,298) | (18,536) | (18,988) |
Foreign currency exchange gains (losses) | (3) | (20) | (88) | 143 |
Other income | 0 | 572 | 96 | 582 |
Income (loss) before income taxes and equity in income (loss) of subsidiaries | (4,923) | (6,832) | (27,940) | (33,625) |
Provision (benefit) for income taxes | 1,421 | (1,389) | 1,419 | (5,083) |
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
NET LOSS | (6,344) | (5,443) | (29,359) | (28,542) |
Consolidation, Eliminations [Member] | ||||
Condensed Financial Statements, Captions | ||||
REVENUE | (540) | (319) | (1,482) | (1,031) |
EXPENSES: | ||||
Depreciation and amortization | 0 | (13) | (25) | (38) |
Cost of sales | (214) | 2 | (504) | (54) |
Selling, general and administrative | (326) | (321) | (978) | (977) |
Total operating expenses | (540) | (332) | (1,507) | (1,069) |
INCOME (LOSS) FROM OPERATIONS | 0 | 13 | 25 | 38 |
Interest income (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 | 0 | 13 | 25 | 38 |
Provision (benefit) for income taxes | 0 | 0 | 0 | 0 |
Equity in income (loss) of subsidiaries | (4,904) | (14) | 5,989 | 13,853 |
NET LOSS | (4,904) | (1) | 6,014 | 13,891 |
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 | 169 | 315 | 429 | 888 |
Total operating expenses | 169 | 315 | 429 | 888 |
INCOME (LOSS) FROM OPERATIONS | (169) | (315) | (429) | (888) |
Interest income (expense), net | (6,046) | (5,732) | (17,959) | (17,034) |
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 | (6,215) | (6,047) | (18,388) | (17,922) |
Provision (benefit) for income taxes | 0 | 0 | 0 | 0 |
Equity in income (loss) of subsidiaries | (129) | 604 | (10,971) | (10,620) |
NET LOSS | (6,344) | (5,443) | (29,359) | (28,542) |
Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions | ||||
REVENUE | 13,148 | 20,017 | 46,241 | 49,297 |
EXPENSES: | ||||
Depreciation and amortization | 14,011 | 15,071 | 48,493 | 44,237 |
Cost of sales | 244 | 19 | 571 | 96 |
Selling, general and administrative | 3,916 | 3,799 | 12,553 | 11,256 |
Total operating expenses | 18,171 | 18,889 | 61,617 | 55,589 |
INCOME (LOSS) FROM OPERATIONS | (5,023) | 1,128 | (15,376) | (6,292) |
Interest income (expense), net | (142) | (497) | (608) | (1,703) |
Foreign currency exchange gains (losses) | (2) | 0 | 0 | 0 |
Other income | 572 | 0 | 581 | |
Income (loss) before income taxes and equity in income (loss) of subsidiaries | (5,167) | 1,203 | (15,984) | (7,414) |
Provision (benefit) for income taxes | (5) | 22 | (6) | 11 |
Equity in income (loss) of subsidiaries | 5,033 | (590) | 4,982 | (3,233) |
NET LOSS | (129) | 591 | (10,996) | (10,658) |
Non-Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions | ||||
REVENUE | 11,405 | 3,557 | 23,549 | 11,279 |
EXPENSES: | ||||
Depreciation and amortization | 3,703 | 3,875 | 13,478 | 14,640 |
Cost of sales | 1 | 1 | 7 | 13 |
Selling, general and administrative | 1,290 | 1,593 | 3,696 | 4,846 |
Total operating expenses | 4,994 | 5,469 | 17,181 | 19,499 |
INCOME (LOSS) FROM OPERATIONS | 6,411 | (1,912) | 6,368 | (8,220) |
Interest income (expense), net | 49 | (69) | 31 | (251) |
Foreign currency exchange gains (losses) | (1) | (20) | (88) | 143 |
Other income | 0 | 96 | 1 | |
Income (loss) before income taxes and equity in income (loss) of subsidiaries | 6,459 | (2,001) | 6,407 | (8,327) |
Provision (benefit) for income taxes | 1,426 | (1,411) | 1,425 | (5,094) |
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | 0 |
NET LOSS | $ 5,033 | $ (590) | $ 4,982 | $ (3,233) |
Supplemental Guarantors Conso36
Supplemental Guarantors Consolidating Condensed Financial Information (Statement of Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Condensed Financial Statements, Captions | ||||
Net income (loss) | $ (6,344) | $ (5,443) | $ (29,359) | $ (28,542) |
Foreign currency translation adjustments | 4,752 | (861) | 8,143 | 5,575 |
Comprehensive income (loss) | (1,592) | (6,304) | (21,216) | (22,967) |
Consolidation, Eliminations [Member] | ||||
Condensed Financial Statements, Captions | ||||
Net income (loss) | (4,904) | (1) | 6,014 | 13,891 |
Foreign currency translation adjustments | 0 | 1 | 111 | 84 |
Comprehensive income (loss) | (4,904) | 0 | 6,125 | 13,975 |
Parent [Member] | ||||
Condensed Financial Statements, Captions | ||||
Net income (loss) | (6,344) | (5,443) | (29,359) | (28,542) |
Foreign currency translation adjustments | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | (6,344) | (5,443) | (29,359) | (28,542) |
Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions | ||||
Net income (loss) | (129) | 591 | (10,996) | (10,658) |
Foreign currency translation adjustments | 0 | 0 | 0 | 0 |
Comprehensive income (loss) | (129) | 591 | (10,996) | (10,658) |
Non-Guarantor Subsidiaries [Member] | ||||
Condensed Financial Statements, Captions | ||||
Net income (loss) | 5,033 | (590) | 4,982 | (3,233) |
Foreign currency translation adjustments | 4,752 | (862) | 8,032 | 5,491 |
Comprehensive income (loss) | $ 9,785 | $ (1,452) | $ 13,014 | $ 2,258 |
Supplemental Guarantors Conso37
Supplemental Guarantors Consolidating Condensed Financial Information (Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | $ 44,281 | $ 29,131 |
Cash flows from investing activities: | ||
Cash invested in seismic data | (20,518) | (20,699) |
Cash paid to acquire property and equipment | (362) | (176) |
Cash from sale of property and equipment | 3 | 18 |
Advances to Seitel Holdings, Inc. | (11) | (19) |
Net cash used in investing activities | (20,888) | (20,876) |
Cash flows from financing activities: | ||
Principal payments on capital lease obligations | (178) | (152) |
Intercompany transfers | 0 | 0 |
Net cash used in financing activities | (178) | (152) |
Effect of exchange rate changes | 1,061 | 96 |
Net increase in cash and cash equivalents | 24,276 | 8,199 |
Cash and cash equivalents at beginning of period | 55,997 | 52,675 |
Cash and cash equivalents at end of period | 80,273 | 60,874 |
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 | 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 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 | (12,325) | (12,525) |
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 | 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 | 12,325 | 12,525 |
Net cash used in financing activities | 12,325 | 12,525 |
Effect of exchange rate changes | 0 | 0 |
Net increase 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 | 32,878 | 35,409 |
Cash flows from investing activities: | ||
Cash invested in seismic data | (13,081) | (19,141) |
Cash paid to acquire property and equipment | (260) | (173) |
Cash from sale of property and equipment | 0 | 17 |
Advances to Seitel Holdings, Inc. | (11) | (19) |
Net cash used in investing activities | (13,352) | (19,316) |
Cash flows from financing activities: | ||
Principal payments on capital lease obligations | 0 | 0 |
Intercompany transfers | (12,325) | (12,326) |
Net cash used in financing activities | (12,325) | (12,326) |
Effect of exchange rate changes | 0 | 0 |
Net increase in cash and cash equivalents | 7,201 | 3,767 |
Cash and cash equivalents at beginning of period | 47,971 | 51,192 |
Cash and cash equivalents at end of period | 55,172 | 54,959 |
Non-Guarantor Subsidiaries [Member] | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | 23,728 | 6,247 |
Cash flows from investing activities: | ||
Cash invested in seismic data | (7,437) | (1,558) |
Cash paid to acquire property and equipment | (102) | (3) |
Cash from sale of property and equipment | 3 | 1 |
Advances to Seitel Holdings, Inc. | 0 | 0 |
Net cash used in investing activities | (7,536) | (1,560) |
Cash flows from financing activities: | ||
Principal payments on capital lease obligations | (178) | (152) |
Intercompany transfers | 0 | (199) |
Net cash used in financing activities | (178) | (351) |
Effect of exchange rate changes | 1,061 | 96 |
Net increase in cash and cash equivalents | 17,075 | 4,432 |
Cash and cash equivalents at beginning of period | 8,026 | 1,483 |
Cash and cash equivalents at end of period | $ 25,101 | $ 5,915 |