Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Feb. 12, 2018 | |
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-K | |
Document Period End Date | Dec. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | FY | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 100 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | Yes | |
Entity Current Reporting Status | No | |
Entity Public Float | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 70,581 | $ 55,997 |
Receivables | ||
Trade, less allowance for doubtful accounts of $176 and $223, respectively | 23,330 | 24,481 |
Notes and other | 2,617 | 436 |
Due from Seitel Holdings, Inc. (Note J) | 1,191 | 1,177 |
Seismic data library (Note B) | 1,349,350 | 1,292,750 |
Less: Accumulated amortization | (1,274,808) | (1,176,828) |
Net seismic data library | 74,542 | 115,922 |
Property and equipment | 18,945 | 18,187 |
Less: Accumulated depreciation and amortization | (17,346) | (16,478) |
Net property and equipment | 1,599 | 1,709 |
Prepaid expenses, deferred charges and other | 1,842 | 1,762 |
Intangible assets, net (Note C) | 900 | 1,418 |
Goodwill (Note C) | 187,243 | 182,012 |
Deferred income taxes (Note D) | 203 | 257 |
TOTAL ASSETS | 364,048 | 385,171 |
LIABILITIES AND STOCKHOLDER’S EQUITY | ||
Accounts payable | 6,649 | 2,357 |
Accrued liabilities | 10,680 | 10,286 |
Employee compensation payable | 2,869 | 4,364 |
Income taxes payable | 2,777 | 620 |
Senior Notes (Note E) | 248,142 | 246,857 |
Obligations under capital leases (Note F) | 1,363 | 1,510 |
Deferred revenue (Note A) | 13,095 | 15,904 |
Deferred income taxes (Note D) | 1,359 | 2,214 |
TOTAL LIABILITIES | 286,934 | 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 | 400,592 | 400,582 |
Retained deficit | (314,671) | (283,190) |
Accumulated other comprehensive loss | (8,807) | (16,333) |
TOTAL STOCKHOLDER’S EQUITY | 77,114 | 101,059 |
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY | $ 364,048 | $ 385,171 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Trade, allowance for doubtful accounts | $ 176 | $ 223 |
Notes and other, allowance for doubtful accounts | $ 0 | $ 0 |
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 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Statement [Abstract] | |||
REVENUE | $ 90,250,000 | $ 94,546,000 | $ 100,252,000 |
EXPENSES: | |||
Depreciation and amortization | 77,482,000 | 75,078,000 | 80,923,000 |
Cost of sales | 96,000 | 76,000 | 195,000 |
Selling, general and administrative | 20,291,000 | 24,119,000 | 22,184,000 |
Total operating expenses | 97,869,000 | 99,273,000 | 103,302,000 |
LOSS FROM OPERATIONS | (7,619,000) | (4,727,000) | (3,050,000) |
Interest expense | (25,164,000) | (25,337,000) | (25,430,000) |
Interest income | 512,000 | 370,000 | 40,000 |
Foreign currency exchange gains (losses) | 8,000 | 109,000 | (1,650,000) |
Other income | 97,000 | 1,765,000 | 5,000 |
Loss before income taxes | (32,166,000) | (27,820,000) | (30,085,000) |
Provision (benefit) for income taxes | (685,000) | (3,396,000) | 79,905,000 |
NET LOSS | $ (31,481,000) | $ (24,424,000) | $ (109,990,000) |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||||||||||
Net loss | $ (2,122) | $ (6,344) | $ (9,636) | $ (13,379) | $ 4,118 | $ (5,443) | $ (9,235) | $ (13,864) | $ (31,481) | $ (24,424) | $ (109,990) |
Foreign currency translation adjustments | 7,526 | 3,190 | (21,211) | ||||||||
Comprehensive loss | $ (23,955) | $ (21,234) | $ (131,201) |
Consolidated Statement Of Stock
Consolidated Statement Of Stockholder's Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance, shares at Dec. 31, 2014 | 100 | ||||
Balance at Dec. 31, 2014 | $ 0 | $ 400,177 | $ (148,776) | $ 1,688 | |
Increase (Decrease) in Stockholder's Equity [Roll Forward] | |||||
Amortization of stock-based compensation costs | 328 | ||||
Net loss | $ (109,990) | (109,990) | |||
Foreign currency translation adjustments | (21,211) | (21,211) | |||
Balance, shares at Dec. 31, 2015 | 100 | ||||
Balance at Dec. 31, 2015 | $ 0 | 400,505 | (258,766) | (19,523) | |
Increase (Decrease) in Stockholder's Equity [Roll Forward] | |||||
Amortization of stock-based compensation costs | 77 | ||||
Net loss | (24,424) | (24,424) | |||
Foreign currency translation adjustments | $ 3,190 | 3,190 | |||
Balance, shares at Dec. 31, 2016 | 100 | 100 | |||
Balance at Dec. 31, 2016 | $ 101,059 | $ 0 | 400,582 | (283,190) | (16,333) |
Increase (Decrease) in Stockholder's Equity [Roll Forward] | |||||
Amortization of stock-based compensation costs | 10 | ||||
Net loss | (31,481) | (31,481) | |||
Foreign currency translation adjustments | $ 7,526 | 7,526 | |||
Balance, shares at Dec. 31, 2017 | 100 | 100 | |||
Balance at Dec. 31, 2017 | $ 77,114 | $ 0 | $ 400,592 | $ (314,671) | $ (8,807) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of net loss to net cash provided by operating activities: | |||
Net loss | $ (31,481) | $ (24,424) | $ (109,990) |
Depreciation and amortization | 77,482 | 75,078 | 80,923 |
Deferred income tax provision (benefit) | (3,628) | (3,957) | 79,712 |
Foreign currency exchange losses (gains) | (8) | (109) | 1,650 |
Amortization of deferred financing costs | 1,285 | 1,224 | 1,200 |
Amortization of stock-based compensation | 10 | 77 | 328 |
Increase (decrease) in allowance for doubtful accounts | 0 | (20) | 4 |
Gain on sale of seismic data and property and equipment | (96) | (7) | 0 |
Non-cash other income | 0 | (1,744) | 0 |
Non-cash revenue | (1,620) | (3,308) | (6,928) |
Decrease (increase) in receivables | 1,686 | (8,827) | 37,490 |
Decrease in other assets | 175 | 416 | 692 |
Decrease in deferred revenue | (3,353) | (9,378) | (10,539) |
Increase (decrease) in accounts payable and other liabilities | (98) | 5,522 | (1,906) |
Net cash provided by operating activities | 40,354 | 30,543 | 72,636 |
Cash flows from investing activities: | |||
Cash invested in seismic data | (26,170) | (26,662) | (77,281) |
Cash paid to acquire property and equipment | (534) | (304) | (432) |
Cash from sale of seismic data and property and equipment | 182 | 18 | 0 |
Advances to Seitel Holdings, Inc. | (14) | (21) | (13) |
Net cash used in investing activities | (26,536) | (26,969) | (77,726) |
Cash flows from financing activities: | |||
Principal payments on capital lease obligations | (244) | (205) | (218) |
Net cash used in financing activities | (244) | (205) | (218) |
Effect of exchange rate changes | 1,010 | (47) | (1,192) |
Net increase (decrease) in cash and cash equivalents | 14,584 | 3,322 | (6,500) |
Cash and cash equivalents at beginning of period | 55,997 | 52,675 | 59,175 |
Cash and cash equivalents at end of period | 70,581 | 55,997 | 52,675 |
Supplemental disclosure of cash flow information: | |||
Interest | 23,879 | 24,113 | 24,230 |
Income taxes, net of refunds received | 847 | (3,630) | (665) |
Supplemental schedule of non-cash investing and financing activities: | |||
Additions to seismic data library | $ 2,064 | $ 2,640 | $ 9,311 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Significant Accounting Policies | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES Organization: On February 14, 2007, Seitel Acquisition Corp. (“Acquisition Corp.”) was merged with and into Seitel, Inc. (the "Company"), pursuant to a merger agreement between the Company, Acquisition Corp. and Seitel Holdings, Inc. (“Holdings”) dated October 31, 2006 (the “Merger”). Pursuant to the merger agreement, the Company continued as the surviving corporation and became a privately owned corporation and wholly-owned subsidiary of Holdings. Holdings is an investment entity in which ValueAct Capital Master Fund, L.P. owns a majority interest. In May 2011, Centerbridge Capital Partners II, L.P. and Centerbridge Capital Partners SBS II, L.P. purchased a minority interest in Holdings. Nature of Operations: The Company owns an extensive library of proprietary onshore and offshore seismic data that it offers for license to exploration and production (“E&P”) companies. The Company’s library includes a vast amount of seismic data across both unconventional plays and conventional oil and gas basins. The Company has leading seismic market positions in key North American unconventional plays, including the Eagle Ford/Woodbine, Permian, Utica/Marcellus, Niobrara/Bakken and Haynesville in the United States and Montney, Duvernay and Horn River in Canada. Additionally, the Company expanded its data library coverage into Mexico in 2015 through the reprocessing of existing two-dimensional (“2D”) data which can be licensed to E&P companies. The majority of the Company’s conventional seismic data covers onshore regions within North America with the remainder covering offshore United States. To support its seismic data licensing business and its clients, the Company maintains warehouse and electronic storage facilities in Houston, Texas and Calgary, Alberta, Canada and offers, through its Seitel Solutions business unit (“Solutions”), the ability to access and interact, via a standard web browser and the Internet, with the seismic data library owned and marketed by the Company. Basis of Presentation: The accompanying consolidated financial statements include the accounts of the Company and the accounts of its wholly-owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. The Company presents its consolidated balance sheets on an unclassified basis. The portion of seismic data library costs to be amortized during the next year cannot be classified as a current asset due to Securities and Exchange Commission (“SEC”) guidance. Classification of all of these costs as noncurrent would be misleading to the reader because it would not indicate the level of assets expected to be converted into cash in the next year. Use of Estimates and Assumptions: The preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the accounting for and recognition of assets, liabilities, revenues and expenses. These estimates and assumptions must be made because certain information that is used in the preparation of the Company’s financial statements is dependent on future events, cannot be calculated with a high degree of precision from data available or is not otherwise capable of being readily calculated based on generally accepted methodologies. In some cases, these estimates are particularly difficult to determine and the Company must exercise significant judgment. The most difficult, subjective and complex estimates and assumptions that deal with the greatest amount of uncertainty are related to the Company’s accounting for its seismic data library, goodwill and realizability of its deferred tax assets. The Company’s accounting for its seismic data library requires it to make significant subjective estimates and assumptions relative to future sales and cash flows from such library. These cash flows impact amortization rates, as well as potential impairment charges. Any changes in the Company’s estimates or underlying assumptions may impact the Company’s results of operations prospectively from the date changes are made. To the extent that such estimates, or the assumptions used to make those estimates, prove to be significantly different than actual results, the carrying value of the seismic data library may be subject to higher prospective amortization rates, additional straight-line amortization or impairment losses. In a portion of its seismic data library activities, the Company engages in certain non-monetary exchanges and records a data library asset for the seismic data received and recognizes revenue on the transaction in accordance with its policies on revenue recognition. These transactions are valued at the fair value of the data received by the Company or licenses or services granted by the Company, whichever is more readily determinable. The Company's estimate of the value of these transactions is highly subjective and based, in large part, on data sales transactions between the Company and a limited number of customers over a limited time period. When required to perform the two-step goodwill impairment test, the Company estimates the fair value of the reporting unit using discounted cash flow analysis which requires significant judgments and estimates about the future performance of the Company. If these projected cash flows change materially, the Company may be required to record impairment losses relative to goodwill. In evaluating the Company’s ability to recover its deferred tax assets, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies and results of recent operations. The assumptions about future taxable income require significant judgment and are consistent with the plans and estimates management is using to manage the underlying business. If the projected future taxable income changes materially, the Company may be required to reassess the amount of valuation allowance recorded against its deferred tax assets. Actual results could differ materially from the estimates and assumptions that the Company uses in the preparation of its financial statements. To the extent management's estimates and assumptions change in the future, the effect on the Company’s reported results could be significant to any particular reporting period. 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 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 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 the seismic data acquired is recorded as an asset. The activity related to non-monetary exchanges was as follows (in thousands): Year Ended December 31, 2017 2016 2015 Seismic data library additions $ 2,064 $ 2,640 $ 9,311 Revenue recognized on specific data licenses or selections of data 1,250 3,179 6,747 Revenue recognized related to acquisition contracts 279 129 168 Revenue recognized related to Solutions and other revenue 91 — 13 Revenue from Solutions Revenue from Solutions is recognized as the services for reproduction and delivery of seismic data are provided to customers. Trade Receivables: The Company extends credit to various companies in the oil and gas industry for the licensing of seismic data, which results in a concentration of credit risk. This concentration of credit risk may be affected by changes in economic or other conditions and may accordingly impact the Company’s overall credit risk. However, management believes that the risk is mitigated by the number, size, reputation, and diversified nature of the companies to which they extend credit. Historical credit losses incurred on receivables by the Company have not been significant relative to sales. The Company determines the adequacy of its allowance for doubtful accounts based on a periodic review of specific receivables for which revenue has been recognized. In certain transactions, the Company may permit a customer to make payments on receivables over a period of time. If such payments extend beyond one year from the transaction date, the Company discounts such receivable and recognizes interest income over the term of the payments. The Company includes taxes, such as sales tax or goods and services tax, as required, on certain invoices to its customers in order to remit payment to applicable governmental authorities. Tax amounts charged to our customers are excluded from revenues. Major Customers: During the year ended December 31, 2017, two customers accounted for more than 10% of total revenue, totaling approximately 11.3% and 10.1% each. One customer accounted for approximately 16.3% of total revenues for the year ended December 31, 2016. During the year ended December 31, 2015, two customers accounted for more than 10% of revenue, totaling approximately 14.5% and 12.5% each. Property and Equipment: Property and equipment consists primarily of computer equipment, leasehold improvements and furniture and fixtures stated at historical cost through February 13, 2007, at which time the Company adjusted its property and equipment to fair value in accordance with purchase accounting. Subsequent additions are stated at historical cost. Depreciation of property and equipment is calculated using the straight-line method over the estimated useful lives of the assets, the majority of which are three to five years. Leasehold improvements are amortized using the straight-line method over the shorter of their estimated useful lives or the remaining term of the underlying lease. Depreciation expense for the years ended December 31, 2017 , 2016 and 2015 was $0.5 million , $0.7 million and $0.9 million , respectively. Goodwill and Other Intangible Assets: Goodwill is the excess of purchase price over the fair value of the net assets of acquired businesses. The Company does not amortize goodwill and indefinite-lived intangibles but, at least annually, evaluates whether goodwill and indefinite-lived intangibles are impaired. Goodwill is considered impaired if the carrying amount of the reporting unit exceeds its estimated fair value. The Company conducts its annual assessment of the recoverability of goodwill as of October 1 of each year. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. If the qualitative assessment indicates that it is more likely than not that the fair value of the reporting unit is less than its carrying amount or the Company elects not to perform a qualitative assessment, the quantitative assessment or two-step goodwill test is performed. The two-step goodwill impairment test is also performed whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If it is necessary to perform the quantitative assessment to determine if the Company’s goodwill is impaired, the Company utilizes discounted cash flow analysis, which requires significant judgments and estimates about future operations, to develop the Company’s estimates of fair value. The cost of intangible assets with determinable lives is amortized to reflect the pattern of economic benefits consumed, on a straight-line basis, over the estimated periods benefited, ranging from 7 to 10 years. Income Taxes: The Company follows the asset and liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recorded for the future income consequences of temporary differences between the financial reporting and income tax basis of assets and liabilities, and are measured using enacted tax rates and laws. The Company regularly evaluates valuation allowances established for deferred tax assets for which future realization is uncertain. In assessing the realizability of deferred tax assets, the Company considers both positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and results of recent operations. If, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be realized, a valuation allowance is recorded. The Company and all of its U.S. subsidiaries file a consolidated federal income tax return. The Company does not provide U.S. taxes on the undistributed earnings of its foreign subsidiaries whose earnings are intended to be permanently reinvested in foreign operations. At December 31, 2017 , there were $0.4 million accumulated earnings of non-U.S. subsidiaries offset by $(37.1) million accumulated net losses of non-U.S. subsidiaries. On December 22, 2017, the U.S. government enacted what is informally called the Tax Cuts and Jobs Act of 2017 (the “Tax Act”), a comprehensive U.S. tax reform package that, effective January 1, 2018, among other things, lowered the corporate income tax rate from 35% to 21% and moved the country towards a territorial tax system with a one-time mandatory tax on previously deferred foreign earnings of foreign subsidiaries. See Note D for further information. Foreign Currency Translation: For subsidiaries that have functional currency which is deemed to be other than the U.S. dollar, asset and liability accounts are translated at period-end exchange rates and revenue and expenses are translated at the current exchange rates as of the dates on which they are recognized. Resulting translation adjustments are included in accumulated other comprehensive income (loss) in stockholder’s equity. Accumulated translation losses were $8.8 million and $16.3 million at December 31, 2017 and 2016 , respectively. Cumulative translation adjustments are not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. Any gains or losses realized on transactions or monetary assets or liabilities in currencies other than the functional currency are included in results of operations in the current period. Transaction gains (losses) totaled $8,000 , $0.1 million and $(1.7) million for the years ended December 31, 2017 , 2016 and 2015 , respectively. Other Income: During the year ended December 31, 2016, the Company recorded $1.8 million in other income primarily associated with recognizing gains on extinguishment of liabilities. The gains were the result of the legal cancellation or expiration of the Company’s existing liabilities related to contingent payments on certain seismic data assets. Stock-Based Compensation: The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. Employee Benefit Plans: The Company maintains savings plans in the United States and Canada that allow employees to contribute a portion of their compensation on a pre-tax and/or after-tax basis in accordance with specified guidelines. The Company matches a percentage of the employee contributions up to certain limits. Savings plan expense amounted to $0.7 million , $0.4 million and $0.5 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. 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)”. Several additional ASUs were then issued providing further guidance regarding the adoption of and additional amendments to the new revenue recognition standard. The guidance in these ASUs established a single comprehensive model of accounting for revenue arising from contracts with customers that 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. The new standard will also significantly expand disclosure requirements concerning revenues for most entities. 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 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 the Company’s 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. The Company adopted the new standard effective January 1, 2018 utilizing the modified retrospective approach, recognizing approximately $0.2 million that was in deferred revenue as of December 31, 2017 to retained earnings. The Company completed its review of the disclosure requirements under the new standard and its current disclosures will be expanded beginning with the Company’s March 31, 2018 Form 10-Q. 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. 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. |
Seismic Data Library
Seismic Data Library | 12 Months Ended |
Dec. 31, 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 seismic data 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. The following table sets forth a summary of the net book value of the Company’s seismic data library (in thousands): As of December 31, 2017 2016 U.S. Onshore: Unconventional 3D $ 57,697 $ 96,457 Conventional 3D 3,234 2,103 Canada: Unconventional 3D 12,215 16,361 Conventional 3D 86 154 2D 291 415 U.S. Offshore 165 168 Mexico 2D 854 264 Total $ 74,542 $ 115,922 At December 31, 2017 and 2016 , approximately 6% and 5% , respectively, of the net book value of the seismic data library were projects in progress. 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 newly 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 $2.6 million , $2.9 million and $3.5 million for the years ended December 31, 2017 , 2016 and 2015 , 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 A 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. Amortization expense totaled $76.5 million , $70.2 million and $75.9 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The actual aggregate rate of amortization as a percentage of total seismic revenue was 87% , 76% and 78% for the same periods, respectively. 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 January 1, 2018 , the amortization rate utilized under the income forecast method is 70% for all components. Additionally, certain seismic surveys have been fully amortized; consequently, no amortization expense is required on revenue recorded for these seismic surveys. 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 future cash flows are equal to or greater than the carrying value of such component, no impairment is recorded. If undiscounted future 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 three years ended December 31, 2017 . |
Goodwill and Other Intangibles
Goodwill and Other Intangibles | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangibles | GOODWILL AND OTHER INTANGIBLES At least annually on October 1st, and more frequently if warranted, the Company assesses it goodwill and indefinite lived intangible assets for impairment. No impairment losses were recorded for goodwill or indefinite lived intangible assets during the years ended December 31, 2017 , 2016 and 2015 . However, there can be no assurance that goodwill and indefinite lived intangibles will not be impaired at any time in the future. Changes in the carrying amount of goodwill for the years ended December 31, 2017 and 2016 are as follows (in thousands): December 31, 2017 2016 Balance at beginning of year $ 182,012 $ 179,792 Translation adjustments 5,231 2,220 Balance at end of year $ 187,243 $ 182,012 The following is a summary of the Company’s intangible assets other than goodwill (in thousands): December 31, Amortization Period 2017 2016 Amortized intangible assets: Cost: Customer relationships 10 years $ 42,073 $ 41,419 Internally developed software 7 years 7,412 6,925 49,485 48,344 Accumulated amortization: Customer relationships (42,073 ) (40,901 ) Internally developed software (7,412 ) (6,925 ) (49,485 ) (47,826 ) Net book value — 518 Indefinite-lived intangible assets: Trade names 900 900 Total intangible assets at net book value $ 900 $ 1,418 The Company’s trade name assets were determined to have indefinite lives due to the length of time the trade names have been in place. The Company’s current intentions are to maintain the trade names indefinitely. All other intangible assets were amortized on a straight-line basis over their expected useful lives and as of December 31, 2017 , were fully amortized. Amortization expense for the Company’s intangible assets was $0.5 million during the year ended December 31, 2017 and $4.2 million during each of the years ended December 31, 2016 and 2015. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The U.S. operations of the Company are included in the consolidated U.S. federal income tax return of Holdings. However, for financial reporting purposes, the Company's U.S. provision for income taxes has been computed on the basis that the Company files separate consolidated U.S. federal income tax returns with its subsidiaries. Income Tax Expense (Benefit) Income (loss) before income taxes for our U.S. and foreign operations was comprised of the following (in thousands): Year Ended December 31, 2017 2016 2015 U.S. $ (39,082 ) $ (25,221 ) $ (20,234 ) Foreign 6,916 (2,599 ) (9,851 ) $ (32,166 ) $ (27,820 ) $ (30,085 ) The provision (benefit) for income taxes was comprised of the following (in thousands): Year Ended December 31, 2017 2016 2015 Current: Federal $ — $ — $ (4 ) State 26 96 132 Foreign 2,917 465 65 2,943 561 193 Deferred: Federal (2,357 ) — 80,586 State 41 (53 ) 1,119 Foreign (1,312 ) (3,904 ) (1,993 ) (3,628 ) (3,957 ) 79,712 Tax provision (benefit): Federal (2,357 ) — 80,582 State 67 43 1,251 Foreign 1,605 (3,439 ) (1,928 ) $ (685 ) $ (3,396 ) $ 79,905 The differences between the U.S. federal income taxes computed at the statutory rate ( 35% ) and the Company's income taxes for financial reporting purposes were as follows (in thousands): Year Ended December 31, 2017 2016 2015 Statutory federal income tax $ (11,258 ) $ (9,737 ) $ (10,530 ) Impact of U.S. tax reform (2,366 ) — — Change in unrecognized tax positions (341 ) (2,780 ) 422 State income tax, less federal benefit 50 9 (6 ) Tax difference on foreign earnings (562 ) 225 871 Change in foreign taxes — — 415 Change in valuation allowance 13,535 8,606 88,737 Tax credits — — (346 ) Non-deductible expenses 196 180 359 Other, net 61 101 (17 ) Income tax provision (benefit) $ (685 ) $ (3,396 ) $ 79,905 Under the accounting rules, companies are required to recognize the effects of changes in tax laws and tax rates on deferred tax assets and liabilities in the period in which the new legislation is enacted. The effects of the Tax Act on the Company as of December 31, 2017 included three major categories: (1) remeasurement of deferred taxes; (2) reassessment of the realizability of deferred tax assets; and (3) recognition of liabilities for taxes on mandatory deemed repatriation. As described further below, the Company recorded a total benefit to income taxes of $2.4 million in the year ended December 31, 2017. As the Company does not have all the necessary information to analyze all income tax effects of the Tax Act, this is a provisional amount which it believes represents a reasonable estimate of the accounting implications of this tax reform. The Company will continue to evaluate the Tax Act and adjust the provisional amounts as additional information is obtained. The ultimate impact of tax reform may differ from the provisional amounts due to changes in the Company’s interpretation and assumptions, as well as additional regulatory guidance that may be issued. The Company expects to complete its detailed analysis no later than the fourth quarter of 2018. Below is a brief description of each of the three categories of effects from U.S. tax reform and its impact on the Company. Remeasurement of deferred taxes. Under the Tax Act, the U.S. corporate income tax rate was reduced from 35% to 21% . Accordingly, the Company remeasured its U.S. net deferred tax assets as of December 31, 2017 to a 21% rate resulting in a tax expense of $38.4 million . At the same time, we remeasured the valuation allowance recorded against our net deferred tax assets and recorded a tax benefit in an equal amount. Therefore, the net impact to tax expense was zero. Reassessment of the realizability of deferred tax assets. The Tax Act eliminated the corporate alternative minimum tax (AMT) and allows for a refund of unutilized AMT credits. Prior to the Tax Act, the Company had an AMT credit of $2.5 million that had a full valuation allowance recorded against it. As a result of the Tax Act, the realizability of $2.4 million of the AMT credit is now assured and was recorded as a tax benefit as of December 31, 2017. The offset for this amount is recorded in notes and other receivables in the Consolidated Balance Sheet. Liability for taxes due on mandatory deemed repatriation. Under the Tax Act, a company’s foreign earnings accumulated under the legacy tax laws are deemed to be repatriated into the United States. However, at December 31, 2017, the cumulative net earnings and profits associated with the Company’s foreign subsidiaries was a net loss; therefore, no tax expense was required to be recorded. During 2016, Seitel Canada Ltd., a wholly-owned subsidiary of the Company (“Seitel Canada”), settled its outstanding appeal with Canada Revenue Agency related to certain royalty payments made to the Company’s U.S. entities for years 2003 to 2007 and a domestic audit for years 2011 to 2013. As a result of these settlements, the Company recorded a tax benefit of $2.3 million for the year ended December 31, 2016. The Company also recognized a $0.3 million and $0.4 million tax benefit for the years ended December 31, 2017 and 2016, respectively, due to the lapse in statute of limitations on previous uncertain tax positions. Deferred Tax Asset/Liability The components of the net deferred income tax asset (liability) reflected in the Company's consolidated balance sheets at December 31, 2017 and 2016 were as follows (in thousands): Deferred Tax Assets (Liabilities) December 31, 2017 2016 Deferred tax assets: Depreciation and amortization $ 7,354 $ 10,210 Deferred revenue 1,808 2,115 Net operating loss carryforwards 50,353 74,656 Alternative minimum tax credit carryforward 167 2,523 Accrued expenses and other 2,328 7,891 Total deferred tax assets 62,010 97,395 Deferred tax liabilities: Depreciation and amortization (1,785 ) (3,315 ) Intangible assets (189 ) (487 ) Deferred expenses and other (129 ) (138 ) Total deferred tax liabilities (2,103 ) (3,940 ) Valuation allowance: Beginning balance (95,412 ) (88,737 ) Decrease (increase) during the period 34,349 (6,675 ) Total valuation allowance (61,063 ) (95,412 ) Net deferred tax liability $ (1,156 ) $ (1,957 ) Deferred income taxes have been classified in the consolidated balance sheet as: Deferred income tax asset $ 203 $ 257 Deferred income tax liability (1,359 ) (2,214 ) Net deferred income tax liability $ (1,156 ) $ (1,957 ) During 2017, the Company’s valuation allowance provided against its U.S. net deferred tax assets decreased by $34.3 million primarily due to (i) remeasurement of the Company’s net deferred tax assets due to the Tax Act resulting in a decrease in the valuation allowance of $38.4 million ; (ii) reassessment of the realizability of its AMT credit due to the Tax Act resulting in a decrease in the valuation allowance of $2.4 million ; (iii) an additional valuation allowance of $13.0 million primarily due to U.S. net operating losses generated in 2017; (iv) an adjustment of $4.8 million to reduce the valuation allowance as a result of the expiration and forfeiture of stock options in 2017; and (v) decrease in the valuation allowance of $1.7 million related to a U.S. deferred tax asset associated with uncertain tax positions that were adjusted due to a lapse in the statute of limitations and the Tax Act. At December 31, 2017, the Company continues to provide a full valuation allowance against its U.S. federal tax assets and the majority of its state net deferred tax assets. The most significant piece of negative evidence considered in making this assessment was the pretax book losses for the years ended December 31, 2015, 2016 and 2017 which resulted in a cumulative pretax book loss as of December 31, 2017. Available positive evidence considered did not outweigh this negative evidence as of December 31, 2017. However, the amount of the deferred tax assets considered realizable could be adjusted if estimates of future taxable income during the carryforward period are reduced or increased or if objective negative evidence in the form of cumulative losses is no longer present. During 2016, the Company’s valuation allowance increased by $8.6 million primarily due to U.S. net operating losses generated in 2016 partially offset by a $2.0 million decrease in the valuation allowance related to a U.S. deferred tax asset associated with uncertain tax positions that were adjusted due to the settlement with Canada Revenue Agency by Seitel Canada. As of December 31, 2017 , the Company has a U.S. federal net operating loss (NOL) carryforward of approximately $228.5 million which can be used to offset U.S. income taxes payable in future years. This U.S. NOL carryforward will expire in periods beginning 2027 through 2037. As of December 31, 2017 , the Company has an AMT credit carryforward of approximately $0.2 million which can be used to offset regular U.S. federal income taxes payable in future years and which has an indefinite carryforward period. As of December 31, 2017 , the Company has a Colorado state NOL carryforward of approximately $5.4 million which can be used to offset Colorado state income taxes payable in future years. This state NOL carryforward will expire in periods beginning 2028 through 2037. Uncertain Tax Positions The Company accounts for income taxes in accordance with ASC Topic 740, “Income Taxes,” which prescribes a minimum recognition threshold a tax position must meet before being recognized in the financial statements. A reconciliation of the beginning and ending gross unrecognized tax benefits was as follows (in thousands): Year Ended December 31, 2017 2016 2015 Balance at beginning of year $ 493 $ 4,618 $ 5,274 Additions (reductions) based on prior year tax positions — (2,156 ) 197 Reductions related to settlements with taxing authorities — (1,783 ) — Reductions as a result of a lapse of statute of limitations (250 ) (449 ) — Foreign currency translation 36 263 (853 ) Balance at end of year $ 279 $ 493 $ 4,618 As of December 31, 2017 , the total $0.3 million of unrecognized tax benefits would impact the effective income tax rate, if recognized in future periods. Uncertain tax positions are reflected as income tax assets and liabilities. Income tax-related interest and penalty expenses are recorded as a component of income tax expense. As of December 31, 2017 , we had $0.1 million of accrued interest and no accrued penalties. As of December 31, 2016 , we had $0.4 million of accrued interest and no accrued penalties. Income tax expense (benefit) for each of the years ended December 31, 2017 and 2016 included a $0.1 million benefit related to interest on unrecognized tax benefits whereas the year ended December 31, 2015 included a $0.5 million expense related to interest on unrecognized tax benefits. With few exceptions, the Company is no longer subject to U.S. federal, state and local, or non-U.S. income tax examinations by tax authorities for years prior to 2014, 2014 and 2010, respectively. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The following is a summary of the Company’s debt (in thousands): December 31, 2017 2016 9½% Senior Notes $ 250,000 $ 250,000 Less: unamortized debt issuance costs (1,858 ) (3,143 ) $ 248,142 $ 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 due 2019 (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. On both December 31, 2017 and 2016 , accrued interest totaled $5.0 million and was included in accrued liabilities on the consolidated balance sheet. 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. Aggregate Maturities: The aggregate maturities of the Company’s debt are $250.0 million in 2019. |
Lease Obligations
Lease Obligations | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Lease Obligations | LEASE OBLIGATIONS Assets recorded under capital lease obligations of $3.0 million and $2.8 million at December 31, 2017 and 2016 , respectively, are included in property and equipment. Accumulated depreciation related to such assets was $2.1 million and $1.8 million at December 31, 2017 and 2016 , respectively. Depreciation on the assets recorded under capital leases is included in depreciation expense. The Company leases office space under operating leases, some of which include renewal options. Rental expense for each of the years ended December 31, 2017 and 2016 was approximately $1.1 million . Rental expense for the year ended December 31, 2015 was approximately $1.3 million . Future minimum lease payments for the five years subsequent to December 31, 2017 , thereafter and in the aggregate are as follows (in thousands): Capital Leases Operating Leases 2018 $ 361 $ 622 2019 361 573 2020 361 265 2021 360 202 2022 120 185 Thereafter — — Total minimum lease payments 1,563 $ 1,847 Less amount representing interest (200 ) Present value of net minimum lease payments $ 1,363 Capital leases are comprised of a sale leaseback agreement entered into by Seitel Canada in 2002 on a building and land located in Calgary, Alberta, Canada. The term of the lease is 20 years with remaining annual lease payments of $452,340 (Canadian dollars) until April 2022. |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES From time to time, the Company is involved 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 December 31, 2017 , the Company has recorded the estimated amount of potential exposure it may have with respect to litigation and claims. Such amounts are not material to the financial statements. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The Company maintains various stock-based compensation plans administered by the board of directors of Holdings, the Company's parent, for the benefit of the Company's key employees and non-employee directors as discussed below. Total stock-based compensation cost recognized and included in selling, general and administrative expenses was $10,000 , $0.1 million and $0.3 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The Company did not recognize any tax benefits in the income statement related to stock-based compensation for the three years ended December 31, 2017 . Restricted Stock Units In April 2008, Holdings adopted the 2008 Restricted Stock and Restricted Stock Unit Plan which is designed to provide incentives to present and future employees of the Company through the grant of restricted stock and restricted stock unit awards. The 2008 Restricted Stock and Restricted Stock Unit Plan authorizes the issuance of up to 25,000 shares of Holdings’ common stock pursuant to such grants. The restricted stock units (“RSUs”) are convertible into common shares of Holdings upon one of the following events: termination of employment, death, disability or upon a change in control of the Company. During the years ended December 31, 2017 and 2015, no RSUs were converted into shares of Holdings. During 2016, 71 RSUs were converted into shares of Holdings. As of December 31, 2017 , 1,574 fully vested RSUs with a grant date fair value of $258.00 per share were outstanding. A total of 22,659 restricted shares were available for grant at December 31, 2017 . Stock Options 2007 Non-Qualified Stock Option Plan In February 2007, Holdings adopted the 2007 Non-Qualified Stock Option Plan (the “2007 Option Plan”) in order to provide an equity component to management compensation following the Merger. The board of directors of Holdings were authorized to issue options to purchase up to 105,200 shares of Holdings’ common stock. The term of the 2007 Option Plan was 10 years; therefore, as of December 31, 2017, no additional options can be granted as the term has expired. The options issued under the 2007 Stock Option Plan contain only service condition requirements and generally vest 25 percent on each anniversary of the grant date for four years provided the employee has provided continued service. The options provide for certain acceleration of vesting and cancellation of options under different circumstances, such as a change in control, death, disability and termination of service. The Company recognizes compensation expense for these options on a straight-line basis over the requisite service period for each separate vesting portion of the option as if the option was, in substance, multiple options (graded vesting). The options expire 10 years after the date of grant. Upon exercise of the options, shares will be issued from authorized but unissued shares of Holdings. 2012 Non-Qualified Stock Option Plan In May 2012, Holdings adopted the 2012 Non-Qualified Stock Option Plan (the “2012 Option Plan”) to provide incentives to present and future employees of the Company through the grant of Holdings' common stock options. The board of directors of Holdings may issue options to purchase up to 48,605 shares of Holdings' common stock. The options issued in 2012 under the 2012 Stock Option Plan provide for the options to be vested in three different tranches: • one-third of the total grant vests 20 percent on each anniversary of the grant date for five years provided the employee has provided continued service (service condition); • one-third of the total grant vests on a 2.0X event, as defined in the applicable stock option agreement (market and performance conditions); and • one-third of the total grant vests on a 2.5X event, as defined in the applicable stock option agreement (market and performance conditions). The options provide for certain acceleration of vesting and cancellation of options under different circumstances, such as a change in control, death, disability and termination of service. For the portion of the options that vest only based upon a service condition, the Company recognizes compensation expense using graded vesting over the requisite service period. For the options containing market and performance conditions, the Company defers all stock-based compensation until the consummation of the performance condition. The options expire 10 years after the date of grant. Upon exercise of the options, shares will be issued from authorized but unissued shares of Holdings. A total of 16,305 shares of Holdings common stock were available for grant under the 2012 Stock Option Plan at December 31, 2017 . No options were granted in 2017, 2016 or 2015. The following table summarizes stock option activity during the years ended December 31, 2017 , 2016 and 2015 (shares in thousands): Year Ended Year Ended Year Ended December 31, 2017 December 31, 2016 December 31, 2015 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Options Weighted Average Exercise Price Outstanding at beginning of period 114 $ 217.24 130 $ 218.46 130 $ 218.46 Forfeited (8 ) $ 200.95 (16 ) $ 227.19 — $ — Expired (62 ) $ 193.13 — $ — — $ — Outstanding at end of period (1) 44 $ 243.26 114 $ 217.24 130 $ 218.46 Options exercisable at end of period (2) 22 $ 228.81 85 $ 203.48 93 $ 202.48 Available for grant at end of period 16 26 10 (1) Stock options outstanding at December 31, 2017 have a weighted average remaining contractual term of 3.7 years and there is no intrinsic value. (2) Exercisable stock options at December 31, 2017 have a weighted average remaining contractual term of 3.1 years and there is no intrinsic value. The total grant date fair value of options that vested during the year ended December 31, 2017 was $0.3 million . The total grant date fair value of options that vested during each of the years ended December 31, 2016 and 2015 was $0.6 million . As of December 31, 2017 , the total future compensation cost related to non-vested options not yet recognized in the consolidated statements of operations was $1.8 million , of which all but $4,000 is attributable to vesting upon contingent events. The Company did not receive cash from option exercises during the three years ended December 31, 2017 . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 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 December 31, 2017: Cash equivalents $ 70,298 $ 70,298 $ — $ — 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 years ended December 31, 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 December 31, 2017 , the carrying value of the Company's debt was $248.1 million , net of $1.9 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 $250.3 million at December 31, 2017 and $232.6 million at December 31, 2016 . The fair value of the Company's senior notes is based on quoted market prices (Level 1 inputs). |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS Holdings does not maintain a cash account. Consequently, the Company makes payments, as needed, on Holdings’ behalf for corporate expenditures such as taxes and share repurchases for employees that have left the Company and who held equity instruments in Holdings. The Company receives payments on the outstanding balance only when Holdings receives cash from stock issuances. The Company made payments on behalf of Holdings of approximately $14,000 , $21,000 and $13,000 during the years ended December 31, 2017, 2016 and 2015, respectively. The balance due from Holdings as of December 31, 2017 and 2016 was $1.2 million . The Company owns 20% of Wandoo Energy LLC (“Wandoo”), a privately owned oil and gas prospecting company. The Company’s Chief Executive Officer and President serves as the Company’s representative on the board of directors of Wandoo. The Company received no cash dividends from Wandoo during the years ended December 31, 2017 and 2015 and received $10,000 in 2016. |
Statement of Cash Flow Informat
Statement of Cash Flow Information | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Statement of Cash Flow Information | STATEMENT OF CASH FLOW INFORMATION Cash and cash equivalents at December 31, 2017 and 2016 included $0.6 million and $0.5 million , respectively of restricted cash related to collateral on seismic operations bonds. 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. Income taxes paid during 2017 , 2016 and 2015 were $0.8 million , $1.5 million and $0.3 million , respectively. In 2016 and 2015 , the Company received income tax refunds of $5.1 million , and $1.0 million , respectively. The Company had non-cash additions to its seismic data library comprised of the following (in thousands): Year Ended December 31, 2017 2016 2015 Non-monetary exchanges related to resale licensing $ 2,075 $ 1,840 $ 9,300 Non-monetary exchanges from underwriting of new data acquisition — 408 — Adjustment to prior year non-monetary exchanges (11 ) — (2 ) Non-monetary exchanges related to data processing and reproduction services — 392 13 Total non-cash additions to seismic data library $ 2,064 $ 2,640 $ 9,311 Non-cash revenue consisted of the following (in thousands): Year Ended December 31, 2017 2016 2015 Acquisition revenue on underwriting from non-monetary exchange contracts $ 279 $ 129 $ 168 Licensing revenue from specific data licenses and selections on non-monetary exchange contracts 1,250 3,179 6,747 Solutions and other revenue recognized from non-monetary exchange contracts 91 — 13 Total non-cash revenue $ 1,620 $ 3,308 $ 6,928 |
Industry Segments
Industry Segments | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Industry Segments | INDUSTRY SEGMENTS The Company operates in one business segment, which consists of seismic data acquisition, seismic data licensing, seismic data processing and seismic reproduction services. Geographic information for the periods presented was as follows (in thousands): United States Canada Mexico Total Year Ended December 31, 2017 Revenue $ 63,782 $ 25,456 $ 1,012 $ 90,250 Assets (1) 61,690 13,597 854 76,141 Year Ended December 31, 2016 Revenue $ 75,353 $ 17,790 $ 1,403 $ 94,546 Assets (1) 99,339 18,028 264 117,631 Year Ended December 31, 2015 Revenue $ 74,592 $ 25,660 $ — $ 100,252 Assets (1) 132,264 31,586 116 163,966 (1) Assets include net seismic data library and net property and equipment. The Company's revenues may be divided into two major categories: (i) acquisition and licensing of seismic data and (ii) reproduction and delivery of seismic data and other services. Revenue by type of service for the periods presented was as follows (in thousands): Year Ended December 31, 2017 2016 2015 Acquisition and licensing of seismic data $ 88,158 $ 92,454 $ 97,938 Reproduction and delivery of seismic data and other services 2,092 2,092 2,314 Total revenue $ 90,250 $ 94,546 $ 100,252 |
Supplemental Guarantors Consoli
Supplemental Guarantors Consolidating Condensed Financial Information | 12 Months Ended |
Dec. 31, 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 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 December 31, 2017 and December 31, 2016 , and the consolidating condensed statements of operations, statements of comprehensive income (loss) and statements of cash flows for the years ended December 31, 2017 , 2016 and 2015 of (a) the Company; (b) the Guarantor Subsidiaries; (c) the Non-Guarantor Subsidiaries; (d) elimination entries; and (e) the Company, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries on a consolidated basis. Investments in subsidiaries are accounted for under the equity method. The principal elimination entries eliminate investments in subsidiaries, intercompany balances, intercompany transactions and intercompany sales. CONSOLIDATING CONDENSED BALANCE SHEET As of December 31, 2017 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total ASSETS Cash and cash equivalents $ — $ 43,380 $ 27,201 $ — $ 70,581 Receivables Trade, net — 19,183 4,147 — 23,330 Notes and other 2,357 151 109 — 2,617 Due from Seitel Holdings, Inc. — 1,191 — — 1,191 Intercompany receivables (payables) (75,641 ) 73,244 2,397 — — Investment in subsidiaries 411,423 425,736 702 (837,861 ) — Net seismic data library — 57,703 16,839 — 74,542 Net property and equipment — 593 1,006 — 1,599 Prepaid expenses, deferred charges and other 31 1,164 647 — 1,842 Intangible assets, net 900 — — — 900 Goodwill — 107,688 79,555 — 187,243 Deferred income taxes — 51 152 — 203 TOTAL ASSETS $ 339,070 $ 730,084 $ 132,755 $ (837,861 ) $ 364,048 LIABILITIES AND STOCKHOLDER’S EQUITY LIABILITIES Accounts payable and accrued liabilities $ 5,007 $ 9,421 $ 5,770 $ — $ 20,198 Income taxes payable — 12 2,765 — 2,777 Senior Notes 248,142 — — — 248,142 Obligations under capital leases — — 1,363 — 1,363 Deferred revenue — 11,568 1,527 — 13,095 Deferred income taxes — — 1,359 — 1,359 TOTAL LIABILITIES 253,149 21,001 12,784 — 286,934 STOCKHOLDER’S EQUITY Common stock — — — — — Additional paid-in capital 400,592 — — — 400,592 Parent investment — 764,105 156,782 (920,887 ) — Retained deficit (314,671 ) (55,022 ) (27,652 ) 82,674 (314,671 ) Accumulated other comprehensive loss — — (9,159 ) 352 (8,807 ) TOTAL STOCKHOLDER’S EQUITY 85,921 709,083 119,971 (837,861 ) 77,114 TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY $ 339,070 $ 730,084 $ 132,755 $ (837,861 ) $ 364,048 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 Year Ended December 31, 2017 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total REVENUE $ — $ 62,231 $ 29,856 $ (1,837 ) $ 90,250 EXPENSES: Depreciation and amortization — 59,263 18,244 (25 ) 77,482 Cost of sales — 639 6 (549 ) 96 Selling, general and administrative 595 16,232 4,752 (1,288 ) 20,291 595 76,134 23,002 (1,862 ) 97,869 INCOME (LOSS) FROM OPERATIONS (595 ) (13,903 ) 6,854 25 (7,619 ) Interest income (expense), net (24,166 ) (599 ) 113 — (24,652 ) Foreign currency exchange gains (losses) — (1 ) 9 — 8 Other income — — 97 — 97 Income (loss) before income taxes and equity in income (loss) of subsidiaries (24,761 ) (14,503 ) 7,073 25 (32,166 ) Provision (benefit) for income taxes (2,357 ) 67 1,605 — (685 ) Equity in income (loss) of subsidiaries (9,077 ) 5,468 — 3,609 — NET INCOME (LOSS) $ (31,481 ) $ (9,102 ) $ 5,468 $ 3,634 $ (31,481 ) CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS) For the Year Ended December 31, 2017 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Net income (loss) $ (31,481 ) $ (9,102 ) $ 5,468 $ 3,634 $ (31,481 ) Foreign currency translation adjustments — — 7,415 111 7,526 Comprehensive income (loss) $ (31,481 ) $ (9,102 ) $ 12,883 $ 3,745 $ (23,955 ) CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS For the Year Ended December 31, 2016 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total REVENUE $ — $ 73,667 $ 22,261 $ (1,382 ) $ 94,546 EXPENSES: Depreciation and amortization — 55,934 19,194 (50 ) 75,078 Cost of sales — 112 14 (50 ) 76 Selling, general and administrative 1,078 17,590 6,783 (1,332 ) 24,119 1,078 73,636 25,991 (1,432 ) 99,273 INCOME (LOSS) FROM OPERATIONS (1,078 ) 31 (3,730 ) 50 (4,727 ) Interest expense, net (22,910 ) (2,043 ) (14 ) — (24,967 ) Foreign currency exchange gains — — 109 — 109 Other income — 587 1,178 — 1,765 Loss before income taxes and equity in income (loss) of subsidiaries (23,988 ) (1,425 ) (2,457 ) 50 (27,820 ) Provision (benefit) for income taxes — 43 (3,439 ) — (3,396 ) Equity in income (loss) of subsidiaries (436 ) 982 — (546 ) — NET INCOME (LOSS) $ (24,424 ) $ (486 ) $ 982 $ (496 ) $ (24,424 ) CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS) For the Year Ended December 31, 2016 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Net income (loss) $ (24,424 ) $ (486 ) $ 982 $ (496 ) $ (24,424 ) Foreign currency translation adjustments — — 3,105 85 3,190 Comprehensive income (loss) $ (24,424 ) $ (486 ) $ 4,087 $ (411 ) $ (21,234 ) CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS For the Year Ended December 31, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total REVENUE $ — $ 72,593 $ 28,978 $ (1,319 ) $ 100,252 EXPENSES: Depreciation and amortization — 51,455 29,517 (49 ) 80,923 Cost of sales — 123 72 — 195 Selling, general and administrative 1,016 15,362 7,125 (1,319 ) 22,184 1,016 66,940 36,714 (1,368 ) 103,302 INCOME (LOSS) FROM OPERATIONS (1,016 ) 5,653 (7,736 ) 49 (3,050 ) Interest expense, net (22,845 ) (2,146 ) (399 ) — (25,390 ) Foreign currency exchange losses — (3 ) (1,647 ) — (1,650 ) Other income — 5 — — 5 Income (loss) before income taxes and equity in loss of subsidiaries (23,861 ) 3,509 (9,782 ) 49 (30,085 ) Provision (benefit) for income taxes 9,270 72,563 (1,928 ) — 79,905 Equity in loss of subsidiaries (76,859 ) (7,854 ) — 84,713 — NET LOSS $ (109,990 ) $ (76,908 ) $ (7,854 ) $ 84,762 $ (109,990 ) CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE LOSS For the Year Ended December 31, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Net loss $ (109,990 ) $ (76,908 ) $ (7,854 ) $ 84,762 $ (109,990 ) Foreign currency translation adjustments — — (21,349 ) 138 (21,211 ) Comprehensive loss $ (109,990 ) $ (76,908 ) $ (29,203 ) $ 84,900 $ (131,201 ) CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS For the Year Ended December 31, 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 $ (24,355 ) $ 38,037 $ 26,672 $ — $ 40,354 Cash flows from investing activities: Cash invested in seismic data — (17,835 ) (8,335 ) — (26,170 ) Cash paid to acquire property and equipment — (423 ) (111 ) — (534 ) Cash from sale of seismic data and property and equipment — — 182 — 182 Advances to Seitel Holdings, Inc. — (14 ) — — (14 ) Net cash used in investing activities — (18,272 ) (8,264 ) — (26,536 ) Cash flows from financing activities: Principal payments on capital lease obligations — — (244 ) — (244 ) Intercompany transfers 24,355 (24,355 ) — — — Net cash provided by (used in) financing activities 24,355 (24,355 ) (244 ) — (244 ) Effect of exchange rate changes — (1 ) 1,011 — 1,010 Net increase (decrease) in cash and cash equivalents — (4,591 ) 19,175 — 14,584 Cash and cash equivalents at beginning of period — 47,971 8,026 — 55,997 Cash and cash equivalents at end of period $ — $ 43,380 $ 27,201 $ — $ 70,581 CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS For the Year Ended December 31, 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 $ (24,625 ) $ 44,564 $ 10,604 $ — $ 30,543 Cash flows from investing activities: Cash invested in seismic data — (24,581 ) (2,081 ) — (26,662 ) Cash paid to acquire property and equipment — (274 ) (30 ) — (304 ) Cash from sale of property and equipment — 17 1 — 18 Advances to Seitel Holdings, Inc. — (21 ) — — (21 ) Net cash used in investing activities — (24,859 ) (2,110 ) — (26,969 ) Cash flows from financing activities: Principal payments on capital lease obligations — — (205 ) — (205 ) Intercompany transfers 24,625 (22,926 ) (1,699 ) — — Net cash provided by (used in) financing activities 24,625 (22,926 ) (1,904 ) — (205 ) Effect of exchange rate changes — — (47 ) — (47 ) Net increase (decrease) in cash and cash equivalents — (3,221 ) 6,543 — 3,322 Cash and cash equivalents at beginning of period — 51,192 1,483 — 52,675 Cash and cash equivalents at end of period $ — $ 47,971 $ 8,026 $ — $ 55,997 CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS For the Year Ended December 31, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Cash flows from operating activities: Net cash provided by (used in) operating activities $ (24,717 ) $ 80,698 $ 16,655 $ — $ 72,636 Cash flows from investing activities: Cash invested in seismic data — (63,858 ) (13,423 ) — (77,281 ) Cash paid to acquire property and equipment — (422 ) (10 ) — (432 ) Advances to Seitel Holdings, Inc. — (13 ) — — (13 ) Net cash used in investing activities — (64,293 ) (13,433 ) — (77,726 ) Cash flows from financing activities: Principal payments on capital lease obligations — (18 ) (200 ) — (218 ) Intercompany transfers 24,717 (13,717 ) (11,000 ) — — Net cash provided by (used in) financing activities 24,717 (13,735 ) (11,200 ) — (218 ) Effect of exchange rate changes — (3 ) (1,189 ) — (1,192 ) Net increase (decrease) in cash and cash equivalents — 2,667 (9,167 ) — (6,500 ) Cash and cash equivalents at beginning of period — 48,525 10,650 — 59,175 Cash and cash equivalents at end of period $ — $ 51,192 $ 1,483 $ — $ 52,675 |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations (Unaudited) | QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The following is a summary of the unaudited quarterly results of operations for the years ended December 31, 2017 and 2016 : Quarter Ended March 31 June 30 Sept. 30 Dec. 31 (In thousands) 2017 Revenue $ 20,595 $ 23,700 $ 24,013 $ 21,942 Operating income (loss) (7,324 ) (3,307 ) 1,219 1,793 Net loss (13,379 ) (9,636 ) (6,344 ) (2,122 ) Quarter Ended March 31 June 30 Sept. 30 Dec. 31 (In thousands) 2016 Revenue $ 11,950 $ 24,340 $ 23,255 $ 35,001 Operating income (loss) (9,132 ) (5,144 ) (1,086 ) 10,635 Net income (loss) (13,864 ) (9,235 ) (5,443 ) 4,118 |
Schedule II_ Valuation and Qual
Schedule II: Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II: Valuation and Qualifying Accounts | SCHEDULE II: VALUATION AND QUALIFYING ACCOUNTS For the Years Ended December 31, 2017 , 2016 and 2015 (Amounts in thousands) Balance at beginning of period Charged (Credited) to expense Deductions from reserves Balance at end of period Year ended December 31, 2017: Reserves deducted from assets to which they apply: Allowance for doubtful accounts $ 223 $ — $ (47 ) $ 176 Valuation allowance on deferred tax asset 95,412 (27,808 ) (6,541 ) 61,063 Total $ 95,635 $ (27,808 ) $ (6,588 ) $ 61,239 Year ended December 31, 2016: Reserves deducted from assets to which they apply: Allowance for doubtful accounts $ 267 $ (20 ) $ (24 ) $ 223 Valuation allowance on deferred tax asset 88,737 8,641 (1,966 ) 95,412 Total $ 89,004 $ 8,621 $ (1,990 ) $ 95,635 Year ended December 31, 2015: Reserves deducted from assets to which they apply: Allowance for doubtful accounts $ 268 $ 4 $ (5 ) $ 267 Valuation allowance on deferred tax asset — 88,737 — 88,737 Total $ 268 $ 88,741 $ (5 ) $ 89,004 |
Basis of Presentation and Sig23
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidation | The accompanying consolidated financial statements include the accounts of the Company and the accounts of its wholly-owned subsidiaries. All material intercompany accounts and transactions have been eliminated in consolidation. |
Basis of Presentation | The Company presents its consolidated balance sheets on an unclassified basis. The portion of seismic data library costs to be amortized during the next year cannot be classified as a current asset due to Securities and Exchange Commission (“SEC”) guidance. Classification of all of these costs as noncurrent would be misleading to the reader because it would not indicate the level of assets expected to be converted into cash in the next year. |
Use of Estimates and Assumptions | The preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the accounting for and recognition of assets, liabilities, revenues and expenses. These estimates and assumptions must be made because certain information that is used in the preparation of the Company’s financial statements is dependent on future events, cannot be calculated with a high degree of precision from data available or is not otherwise capable of being readily calculated based on generally accepted methodologies. In some cases, these estimates are particularly difficult to determine and the Company must exercise significant judgment. The most difficult, subjective and complex estimates and assumptions that deal with the greatest amount of uncertainty are related to the Company’s accounting for its seismic data library, goodwill and realizability of its deferred tax assets. The Company’s accounting for its seismic data library requires it to make significant subjective estimates and assumptions relative to future sales and cash flows from such library. These cash flows impact amortization rates, as well as potential impairment charges. Any changes in the Company’s estimates or underlying assumptions may impact the Company’s results of operations prospectively from the date changes are made. To the extent that such estimates, or the assumptions used to make those estimates, prove to be significantly different than actual results, the carrying value of the seismic data library may be subject to higher prospective amortization rates, additional straight-line amortization or impairment losses. In a portion of its seismic data library activities, the Company engages in certain non-monetary exchanges and records a data library asset for the seismic data received and recognizes revenue on the transaction in accordance with its policies on revenue recognition. These transactions are valued at the fair value of the data received by the Company or licenses or services granted by the Company, whichever is more readily determinable. The Company's estimate of the value of these transactions is highly subjective and based, in large part, on data sales transactions between the Company and a limited number of customers over a limited time period. When required to perform the two-step goodwill impairment test, the Company estimates the fair value of the reporting unit using discounted cash flow analysis which requires significant judgments and estimates about the future performance of the Company. If these projected cash flows change materially, the Company may be required to record impairment losses relative to goodwill. In evaluating the Company’s ability to recover its deferred tax assets, the Company considers all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies and results of recent operations. The assumptions about future taxable income require significant judgment and are consistent with the plans and estimates management is using to manage the underlying business. If the projected future taxable income changes materially, the Company may be required to reassess the amount of valuation allowance recorded against its deferred tax assets. Actual results could differ materially from the estimates and assumptions that the Company uses in the preparation of its financial statements. To the extent management's estimates and assumptions change in the future, the effect on the Company’s reported results could be significant to any particular reporting period. |
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 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 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 the seismic data acquired is recorded as an asset. The activity related to non-monetary exchanges was as follows (in thousands): Year Ended December 31, 2017 2016 2015 Seismic data library additions $ 2,064 $ 2,640 $ 9,311 Revenue recognized on specific data licenses or selections of data 1,250 3,179 6,747 Revenue recognized related to acquisition contracts 279 129 168 Revenue recognized related to Solutions and other revenue 91 — 13 Revenue from Solutions Revenue from Solutions is recognized as the services for reproduction and delivery of seismic data are provided to customers. |
Trade Receivables | The Company extends credit to various companies in the oil and gas industry for the licensing of seismic data, which results in a concentration of credit risk. This concentration of credit risk may be affected by changes in economic or other conditions and may accordingly impact the Company’s overall credit risk. However, management believes that the risk is mitigated by the number, size, reputation, and diversified nature of the companies to which they extend credit. Historical credit losses incurred on receivables by the Company have not been significant relative to sales. The Company determines the adequacy of its allowance for doubtful accounts based on a periodic review of specific receivables for which revenue has been recognized. In certain transactions, the Company may permit a customer to make payments on receivables over a period of time. If such payments extend beyond one year from the transaction date, the Company discounts such receivable and recognizes interest income over the term of the payments. The Company includes taxes, such as sales tax or goods and services tax, as required, on certain invoices to its customers in order to remit payment to applicable governmental authorities. Tax amounts charged to our customers are excluded from revenues. |
Property and Equipment | Property and equipment consists primarily of computer equipment, leasehold improvements and furniture and fixtures stated at historical cost through February 13, 2007, at which time the Company adjusted its property and equipment to fair value in accordance with purchase accounting. Subsequent additions are stated at historical cost. Depreciation of property and equipment is calculated using the straight-line method over the estimated useful lives of the assets, the majority of which are three to five years. Leasehold improvements are amortized using the straight-line method over the shorter of their estimated useful lives or the remaining term of the underlying lease. |
Goodwill and Other Intangible Assets | Goodwill is the excess of purchase price over the fair value of the net assets of acquired businesses. The Company does not amortize goodwill and indefinite-lived intangibles but, at least annually, evaluates whether goodwill and indefinite-lived intangibles are impaired. Goodwill is considered impaired if the carrying amount of the reporting unit exceeds its estimated fair value. The Company conducts its annual assessment of the recoverability of goodwill as of October 1 of each year. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount as a basis for determining whether it is necessary to perform the two-step goodwill impairment test. If the qualitative assessment indicates that it is more likely than not that the fair value of the reporting unit is less than its carrying amount or the Company elects not to perform a qualitative assessment, the quantitative assessment or two-step goodwill test is performed. The two-step goodwill impairment test is also performed whenever events or changes in circumstances indicate that the carrying value may not be recoverable. If it is necessary to perform the quantitative assessment to determine if the Company’s goodwill is impaired, the Company utilizes discounted cash flow analysis, which requires significant judgments and estimates about future operations, to develop the Company’s estimates of fair value. The cost of intangible assets with determinable lives is amortized to reflect the pattern of economic benefits consumed, on a straight-line basis, over the estimated periods benefited, ranging from 7 to 10 years. |
Income Taxes | The Company follows the asset and liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recorded for the future income consequences of temporary differences between the financial reporting and income tax basis of assets and liabilities, and are measured using enacted tax rates and laws. The Company regularly evaluates valuation allowances established for deferred tax assets for which future realization is uncertain. In assessing the realizability of deferred tax assets, the Company considers both positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and results of recent operations. If, based on the weight of available evidence, it is more likely than not that the deferred tax assets will not be realized, a valuation allowance is recorded. The Company and all of its U.S. subsidiaries file a consolidated federal income tax return. The Company does not provide U.S. taxes on the undistributed earnings of its foreign subsidiaries whose earnings are intended to be permanently reinvested in foreign operations. At December 31, 2017 , there were $0.4 million accumulated earnings of non-U.S. subsidiaries offset by $(37.1) million accumulated net losses of non-U.S. subsidiaries. On December 22, 2017, the U.S. government enacted what is informally called the Tax Cuts and Jobs Act of 2017 (the “Tax Act”), a comprehensive U.S. tax reform package that, effective January 1, 2018, among other things, lowered the corporate income tax rate from 35% to 21% and moved the country towards a territorial tax system with a one-time mandatory tax on previously deferred foreign earnings of foreign subsidiaries. See Note D for further information. |
Foreign Currency Translation | For subsidiaries that have functional currency which is deemed to be other than the U.S. dollar, asset and liability accounts are translated at period-end exchange rates and revenue and expenses are translated at the current exchange rates as of the dates on which they are recognized. Resulting translation adjustments are included in accumulated other comprehensive income (loss) in stockholder’s equity. Accumulated translation losses were $8.8 million and $16.3 million at December 31, 2017 and 2016 , respectively. Cumulative translation adjustments are not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. Any gains or losses realized on transactions or monetary assets or liabilities in currencies other than the functional currency are included in results of operations in the current period. |
Stock-Based Compensation | The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. |
Employee Benefit Plans | The Company maintains savings plans in the United States and Canada that allow employees to contribute a portion of their compensation on a pre-tax and/or after-tax basis in accordance with specified guidelines. The Company matches a percentage of the employee contributions up to certain limits. |
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)”. Several additional ASUs were then issued providing further guidance regarding the adoption of and additional amendments to the new revenue recognition standard. The guidance in these ASUs established a single comprehensive model of accounting for revenue arising from contracts with customers that 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. The new standard will also significantly expand disclosure requirements concerning revenues for most entities. 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 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 the Company’s 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. The Company adopted the new standard effective January 1, 2018 utilizing the modified retrospective approach, recognizing approximately $0.2 million that was in deferred revenue as of December 31, 2017 to retained earnings. The Company completed its review of the disclosure requirements under the new standard and its current disclosures will be expanded beginning with the Company’s March 31, 2018 Form 10-Q. 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. 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. |
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 seismic data 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. The following table sets forth a summary of the net book value of the Company’s seismic data library (in thousands): As of December 31, 2017 2016 U.S. Onshore: Unconventional 3D $ 57,697 $ 96,457 Conventional 3D 3,234 2,103 Canada: Unconventional 3D 12,215 16,361 Conventional 3D 86 154 2D 291 415 U.S. Offshore 165 168 Mexico 2D 854 264 Total $ 74,542 $ 115,922 At December 31, 2017 and 2016 , approximately 6% and 5% , respectively, of the net book value of the seismic data library were projects in progress. 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 newly 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 $2.6 million , $2.9 million and $3.5 million for the years ended December 31, 2017 , 2016 and 2015 , 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 A 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. Amortization expense totaled $76.5 million , $70.2 million and $75.9 million for the years ended December 31, 2017 , 2016 and 2015 , respectively. The actual aggregate rate of amortization as a percentage of total seismic revenue was 87% , 76% and 78% for the same periods, respectively. 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 January 1, 2018 , the amortization rate utilized under the income forecast method is 70% for all components. Additionally, certain seismic surveys have been fully amortized; consequently, no amortization expense is required on revenue recorded for these seismic surveys. 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 future cash flows are equal to or greater than the carrying value of such component, no impairment is recorded. If undiscounted future 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 three years ended December 31, 2017 . |
Basis of Presentation and Sig24
Basis of Presentation and Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The activity related to non-monetary exchanges | The activity related to non-monetary exchanges was as follows (in thousands): Year Ended December 31, 2017 2016 2015 Seismic data library additions $ 2,064 $ 2,640 $ 9,311 Revenue recognized on specific data licenses or selections of data 1,250 3,179 6,747 Revenue recognized related to acquisition contracts 279 129 168 Revenue recognized related to Solutions and other revenue 91 — 13 |
Seismic Data Library (Tables)
Seismic Data Library (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Seismic Data Library [Abstract] | |
Summary of the net book value of the Company’s seismic data library | The following table sets forth a summary of the net book value of the Company’s seismic data library (in thousands): As of December 31, 2017 2016 U.S. Onshore: Unconventional 3D $ 57,697 $ 96,457 Conventional 3D 3,234 2,103 Canada: Unconventional 3D 12,215 16,361 Conventional 3D 86 154 2D 291 415 U.S. Offshore 165 168 Mexico 2D 854 264 Total $ 74,542 $ 115,922 |
Goodwill and Other Intangibles
Goodwill and Other Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill | Changes in the carrying amount of goodwill for the years ended December 31, 2017 and 2016 are as follows (in thousands): December 31, 2017 2016 Balance at beginning of year $ 182,012 $ 179,792 Translation adjustments 5,231 2,220 Balance at end of year $ 187,243 $ 182,012 |
Summary of the Company’s intangible assets other than goodwill | The following is a summary of the Company’s intangible assets other than goodwill (in thousands): December 31, Amortization Period 2017 2016 Amortized intangible assets: Cost: Customer relationships 10 years $ 42,073 $ 41,419 Internally developed software 7 years 7,412 6,925 49,485 48,344 Accumulated amortization: Customer relationships (42,073 ) (40,901 ) Internally developed software (7,412 ) (6,925 ) (49,485 ) (47,826 ) Net book value — 518 Indefinite-lived intangible assets: Trade names 900 900 Total intangible assets at net book value $ 900 $ 1,418 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income (loss) before income taxes | Income (loss) before income taxes for our U.S. and foreign operations was comprised of the following (in thousands): Year Ended December 31, 2017 2016 2015 U.S. $ (39,082 ) $ (25,221 ) $ (20,234 ) Foreign 6,916 (2,599 ) (9,851 ) $ (32,166 ) $ (27,820 ) $ (30,085 ) |
The provision (benefit) for income taxes | The provision (benefit) for income taxes was comprised of the following (in thousands): Year Ended December 31, 2017 2016 2015 Current: Federal $ — $ — $ (4 ) State 26 96 132 Foreign 2,917 465 65 2,943 561 193 Deferred: Federal (2,357 ) — 80,586 State 41 (53 ) 1,119 Foreign (1,312 ) (3,904 ) (1,993 ) (3,628 ) (3,957 ) 79,712 Tax provision (benefit): Federal (2,357 ) — 80,582 State 67 43 1,251 Foreign 1,605 (3,439 ) (1,928 ) $ (685 ) $ (3,396 ) $ 79,905 |
The differences between the U.S. Federal income taxes computed at the statutory rate (35%) and the Company's income taxes for financial reporting purposes | The differences between the U.S. federal income taxes computed at the statutory rate ( 35% ) and the Company's income taxes for financial reporting purposes were as follows (in thousands): Year Ended December 31, 2017 2016 2015 Statutory federal income tax $ (11,258 ) $ (9,737 ) $ (10,530 ) Impact of U.S. tax reform (2,366 ) — — Change in unrecognized tax positions (341 ) (2,780 ) 422 State income tax, less federal benefit 50 9 (6 ) Tax difference on foreign earnings (562 ) 225 871 Change in foreign taxes — — 415 Change in valuation allowance 13,535 8,606 88,737 Tax credits — — (346 ) Non-deductible expenses 196 180 359 Other, net 61 101 (17 ) Income tax provision (benefit) $ (685 ) $ (3,396 ) $ 79,905 |
The components of the net deferred income tax asset (liability) | The components of the net deferred income tax asset (liability) reflected in the Company's consolidated balance sheets at December 31, 2017 and 2016 were as follows (in thousands): Deferred Tax Assets (Liabilities) December 31, 2017 2016 Deferred tax assets: Depreciation and amortization $ 7,354 $ 10,210 Deferred revenue 1,808 2,115 Net operating loss carryforwards 50,353 74,656 Alternative minimum tax credit carryforward 167 2,523 Accrued expenses and other 2,328 7,891 Total deferred tax assets 62,010 97,395 Deferred tax liabilities: Depreciation and amortization (1,785 ) (3,315 ) Intangible assets (189 ) (487 ) Deferred expenses and other (129 ) (138 ) Total deferred tax liabilities (2,103 ) (3,940 ) Valuation allowance: Beginning balance (95,412 ) (88,737 ) Decrease (increase) during the period 34,349 (6,675 ) Total valuation allowance (61,063 ) (95,412 ) Net deferred tax liability $ (1,156 ) $ (1,957 ) Deferred income taxes have been classified in the consolidated balance sheet as: Deferred income tax asset $ 203 $ 257 Deferred income tax liability (1,359 ) (2,214 ) Net deferred income tax liability $ (1,156 ) $ (1,957 ) |
A reconciliation of the beginning and ending gross unrecognized tax benefits | A reconciliation of the beginning and ending gross unrecognized tax benefits was as follows (in thousands): Year Ended December 31, 2017 2016 2015 Balance at beginning of year $ 493 $ 4,618 $ 5,274 Additions (reductions) based on prior year tax positions — (2,156 ) 197 Reductions related to settlements with taxing authorities — (1,783 ) — Reductions as a result of a lapse of statute of limitations (250 ) (449 ) — Foreign currency translation 36 263 (853 ) Balance at end of year $ 279 $ 493 $ 4,618 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instruments | The following is a summary of the Company’s debt (in thousands): December 31, 2017 2016 9½% Senior Notes $ 250,000 $ 250,000 Less: unamortized debt issuance costs (1,858 ) (3,143 ) $ 248,142 $ 246,857 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Schedule of future minimum lease payments | Future minimum lease payments for the five years subsequent to December 31, 2017 , thereafter and in the aggregate are as follows (in thousands): Capital Leases Operating Leases 2018 $ 361 $ 622 2019 361 573 2020 361 265 2021 360 202 2022 120 185 Thereafter — — Total minimum lease payments 1,563 $ 1,847 Less amount representing interest (200 ) Present value of net minimum lease payments $ 1,363 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock option activity | The following table summarizes stock option activity during the years ended December 31, 2017 , 2016 and 2015 (shares in thousands): Year Ended Year Ended Year Ended December 31, 2017 December 31, 2016 December 31, 2015 Options Weighted Average Exercise Price Options Weighted Average Exercise Price Options Weighted Average Exercise Price Outstanding at beginning of period 114 $ 217.24 130 $ 218.46 130 $ 218.46 Forfeited (8 ) $ 200.95 (16 ) $ 227.19 — $ — Expired (62 ) $ 193.13 — $ — — $ — Outstanding at end of period (1) 44 $ 243.26 114 $ 217.24 130 $ 218.46 Options exercisable at end of period (2) 22 $ 228.81 85 $ 203.48 93 $ 202.48 Available for grant at end of period 16 26 10 (1) Stock options outstanding at December 31, 2017 have a weighted average remaining contractual term of 3.7 years and there is no intrinsic value. (2) Exercisable stock options at December 31, 2017 have a weighted average remaining contractual term of 3.1 years and there is no intrinsic value. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2017: Cash equivalents $ 70,298 $ 70,298 $ — $ — At December 31, 2016: Cash equivalents $ 55,674 $ 55,674 $ — $ — |
Statement of Cash Flow Inform32
Statement of Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Non-cash Additions | The Company had non-cash additions to its seismic data library comprised of the following (in thousands): Year Ended December 31, 2017 2016 2015 Non-monetary exchanges related to resale licensing $ 2,075 $ 1,840 $ 9,300 Non-monetary exchanges from underwriting of new data acquisition — 408 — Adjustment to prior year non-monetary exchanges (11 ) — (2 ) Non-monetary exchanges related to data processing and reproduction services — 392 13 Total non-cash additions to seismic data library $ 2,064 $ 2,640 $ 9,311 |
Schedule of Non-Cash Revenue | Non-cash revenue consisted of the following (in thousands): Year Ended December 31, 2017 2016 2015 Acquisition revenue on underwriting from non-monetary exchange contracts $ 279 $ 129 $ 168 Licensing revenue from specific data licenses and selections on non-monetary exchange contracts 1,250 3,179 6,747 Solutions and other revenue recognized from non-monetary exchange contracts 91 — 13 Total non-cash revenue $ 1,620 $ 3,308 $ 6,928 |
Industry Segments (Tables)
Industry Segments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Geographic information for the periods | Geographic information for the periods presented was as follows (in thousands): United States Canada Mexico Total Year Ended December 31, 2017 Revenue $ 63,782 $ 25,456 $ 1,012 $ 90,250 Assets (1) 61,690 13,597 854 76,141 Year Ended December 31, 2016 Revenue $ 75,353 $ 17,790 $ 1,403 $ 94,546 Assets (1) 99,339 18,028 264 117,631 Year Ended December 31, 2015 Revenue $ 74,592 $ 25,660 $ — $ 100,252 Assets (1) 132,264 31,586 116 163,966 (1) Assets include net seismic data library and net property and equipment. |
Revenue by type of service for the periods | Revenue by type of service for the periods presented was as follows (in thousands): Year Ended December 31, 2017 2016 2015 Acquisition and licensing of seismic data $ 88,158 $ 92,454 $ 97,938 Reproduction and delivery of seismic data and other services 2,092 2,092 2,314 Total revenue $ 90,250 $ 94,546 $ 100,252 |
Supplemental Guarantors Conso34
Supplemental Guarantors Consolidating Condensed Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Guarantors Consolidating Condensed Financial Information [Abstract] | |
Schedule of Condensed Balance Sheet | CONSOLIDATING CONDENSED BALANCE SHEET As of December 31, 2017 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total ASSETS Cash and cash equivalents $ — $ 43,380 $ 27,201 $ — $ 70,581 Receivables Trade, net — 19,183 4,147 — 23,330 Notes and other 2,357 151 109 — 2,617 Due from Seitel Holdings, Inc. — 1,191 — — 1,191 Intercompany receivables (payables) (75,641 ) 73,244 2,397 — — Investment in subsidiaries 411,423 425,736 702 (837,861 ) — Net seismic data library — 57,703 16,839 — 74,542 Net property and equipment — 593 1,006 — 1,599 Prepaid expenses, deferred charges and other 31 1,164 647 — 1,842 Intangible assets, net 900 — — — 900 Goodwill — 107,688 79,555 — 187,243 Deferred income taxes — 51 152 — 203 TOTAL ASSETS $ 339,070 $ 730,084 $ 132,755 $ (837,861 ) $ 364,048 LIABILITIES AND STOCKHOLDER’S EQUITY LIABILITIES Accounts payable and accrued liabilities $ 5,007 $ 9,421 $ 5,770 $ — $ 20,198 Income taxes payable — 12 2,765 — 2,777 Senior Notes 248,142 — — — 248,142 Obligations under capital leases — — 1,363 — 1,363 Deferred revenue — 11,568 1,527 — 13,095 Deferred income taxes — — 1,359 — 1,359 TOTAL LIABILITIES 253,149 21,001 12,784 — 286,934 STOCKHOLDER’S EQUITY Common stock — — — — — Additional paid-in capital 400,592 — — — 400,592 Parent investment — 764,105 156,782 (920,887 ) — Retained deficit (314,671 ) (55,022 ) (27,652 ) 82,674 (314,671 ) Accumulated other comprehensive loss — — (9,159 ) 352 (8,807 ) TOTAL STOCKHOLDER’S EQUITY 85,921 709,083 119,971 (837,861 ) 77,114 TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY $ 339,070 $ 730,084 $ 132,755 $ (837,861 ) $ 364,048 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 Statement of Income | CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS For the Year Ended December 31, 2017 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total REVENUE $ — $ 62,231 $ 29,856 $ (1,837 ) $ 90,250 EXPENSES: Depreciation and amortization — 59,263 18,244 (25 ) 77,482 Cost of sales — 639 6 (549 ) 96 Selling, general and administrative 595 16,232 4,752 (1,288 ) 20,291 595 76,134 23,002 (1,862 ) 97,869 INCOME (LOSS) FROM OPERATIONS (595 ) (13,903 ) 6,854 25 (7,619 ) Interest income (expense), net (24,166 ) (599 ) 113 — (24,652 ) Foreign currency exchange gains (losses) — (1 ) 9 — 8 Other income — — 97 — 97 Income (loss) before income taxes and equity in income (loss) of subsidiaries (24,761 ) (14,503 ) 7,073 25 (32,166 ) Provision (benefit) for income taxes (2,357 ) 67 1,605 — (685 ) Equity in income (loss) of subsidiaries (9,077 ) 5,468 — 3,609 — NET INCOME (LOSS) $ (31,481 ) $ (9,102 ) $ 5,468 $ 3,634 $ (31,481 ) CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS) For the Year Ended December 31, 2017 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Net income (loss) $ (31,481 ) $ (9,102 ) $ 5,468 $ 3,634 $ (31,481 ) Foreign currency translation adjustments — — 7,415 111 7,526 Comprehensive income (loss) $ (31,481 ) $ (9,102 ) $ 12,883 $ 3,745 $ (23,955 ) CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS For the Year Ended December 31, 2016 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total REVENUE $ — $ 73,667 $ 22,261 $ (1,382 ) $ 94,546 EXPENSES: Depreciation and amortization — 55,934 19,194 (50 ) 75,078 Cost of sales — 112 14 (50 ) 76 Selling, general and administrative 1,078 17,590 6,783 (1,332 ) 24,119 1,078 73,636 25,991 (1,432 ) 99,273 INCOME (LOSS) FROM OPERATIONS (1,078 ) 31 (3,730 ) 50 (4,727 ) Interest expense, net (22,910 ) (2,043 ) (14 ) — (24,967 ) Foreign currency exchange gains — — 109 — 109 Other income — 587 1,178 — 1,765 Loss before income taxes and equity in income (loss) of subsidiaries (23,988 ) (1,425 ) (2,457 ) 50 (27,820 ) Provision (benefit) for income taxes — 43 (3,439 ) — (3,396 ) Equity in income (loss) of subsidiaries (436 ) 982 — (546 ) — NET INCOME (LOSS) $ (24,424 ) $ (486 ) $ 982 $ (496 ) $ (24,424 ) CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE INCOME (LOSS) For the Year Ended December 31, 2016 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Net income (loss) $ (24,424 ) $ (486 ) $ 982 $ (496 ) $ (24,424 ) Foreign currency translation adjustments — — 3,105 85 3,190 Comprehensive income (loss) $ (24,424 ) $ (486 ) $ 4,087 $ (411 ) $ (21,234 ) CONSOLIDATING CONDENSED STATEMENT OF OPERATIONS For the Year Ended December 31, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total REVENUE $ — $ 72,593 $ 28,978 $ (1,319 ) $ 100,252 EXPENSES: Depreciation and amortization — 51,455 29,517 (49 ) 80,923 Cost of sales — 123 72 — 195 Selling, general and administrative 1,016 15,362 7,125 (1,319 ) 22,184 1,016 66,940 36,714 (1,368 ) 103,302 INCOME (LOSS) FROM OPERATIONS (1,016 ) 5,653 (7,736 ) 49 (3,050 ) Interest expense, net (22,845 ) (2,146 ) (399 ) — (25,390 ) Foreign currency exchange losses — (3 ) (1,647 ) — (1,650 ) Other income — 5 — — 5 Income (loss) before income taxes and equity in loss of subsidiaries (23,861 ) 3,509 (9,782 ) 49 (30,085 ) Provision (benefit) for income taxes 9,270 72,563 (1,928 ) — 79,905 Equity in loss of subsidiaries (76,859 ) (7,854 ) — 84,713 — NET LOSS $ (109,990 ) $ (76,908 ) $ (7,854 ) $ 84,762 $ (109,990 ) CONSOLIDATING CONDENSED STATEMENT OF COMPREHENSIVE LOSS For the Year Ended December 31, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Net loss $ (109,990 ) $ (76,908 ) $ (7,854 ) $ 84,762 $ (109,990 ) Foreign currency translation adjustments — — (21,349 ) 138 (21,211 ) Comprehensive loss $ (109,990 ) $ (76,908 ) $ (29,203 ) $ 84,900 $ (131,201 ) |
Schedule of Condensed Cash Flow Statement | CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS For the Year Ended December 31, 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 $ (24,355 ) $ 38,037 $ 26,672 $ — $ 40,354 Cash flows from investing activities: Cash invested in seismic data — (17,835 ) (8,335 ) — (26,170 ) Cash paid to acquire property and equipment — (423 ) (111 ) — (534 ) Cash from sale of seismic data and property and equipment — — 182 — 182 Advances to Seitel Holdings, Inc. — (14 ) — — (14 ) Net cash used in investing activities — (18,272 ) (8,264 ) — (26,536 ) Cash flows from financing activities: Principal payments on capital lease obligations — — (244 ) — (244 ) Intercompany transfers 24,355 (24,355 ) — — — Net cash provided by (used in) financing activities 24,355 (24,355 ) (244 ) — (244 ) Effect of exchange rate changes — (1 ) 1,011 — 1,010 Net increase (decrease) in cash and cash equivalents — (4,591 ) 19,175 — 14,584 Cash and cash equivalents at beginning of period — 47,971 8,026 — 55,997 Cash and cash equivalents at end of period $ — $ 43,380 $ 27,201 $ — $ 70,581 CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS For the Year Ended December 31, 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 $ (24,625 ) $ 44,564 $ 10,604 $ — $ 30,543 Cash flows from investing activities: Cash invested in seismic data — (24,581 ) (2,081 ) — (26,662 ) Cash paid to acquire property and equipment — (274 ) (30 ) — (304 ) Cash from sale of property and equipment — 17 1 — 18 Advances to Seitel Holdings, Inc. — (21 ) — — (21 ) Net cash used in investing activities — (24,859 ) (2,110 ) — (26,969 ) Cash flows from financing activities: Principal payments on capital lease obligations — — (205 ) — (205 ) Intercompany transfers 24,625 (22,926 ) (1,699 ) — — Net cash provided by (used in) financing activities 24,625 (22,926 ) (1,904 ) — (205 ) Effect of exchange rate changes — — (47 ) — (47 ) Net increase (decrease) in cash and cash equivalents — (3,221 ) 6,543 — 3,322 Cash and cash equivalents at beginning of period — 51,192 1,483 — 52,675 Cash and cash equivalents at end of period $ — $ 47,971 $ 8,026 $ — $ 55,997 CONSOLIDATING CONDENSED STATEMENT OF CASH FLOWS For the Year Ended December 31, 2015 (In thousands) Parent Guarantor Subsidiaries Non- Guarantor Subsidiaries Consolidating Eliminations Consolidated Total Cash flows from operating activities: Net cash provided by (used in) operating activities $ (24,717 ) $ 80,698 $ 16,655 $ — $ 72,636 Cash flows from investing activities: Cash invested in seismic data — (63,858 ) (13,423 ) — (77,281 ) Cash paid to acquire property and equipment — (422 ) (10 ) — (432 ) Advances to Seitel Holdings, Inc. — (13 ) — — (13 ) Net cash used in investing activities — (64,293 ) (13,433 ) — (77,726 ) Cash flows from financing activities: Principal payments on capital lease obligations — (18 ) (200 ) — (218 ) Intercompany transfers 24,717 (13,717 ) (11,000 ) — — Net cash provided by (used in) financing activities 24,717 (13,735 ) (11,200 ) — (218 ) Effect of exchange rate changes — (3 ) (1,189 ) — (1,192 ) Net increase (decrease) in cash and cash equivalents — 2,667 (9,167 ) — (6,500 ) Cash and cash equivalents at beginning of period — 48,525 10,650 — 59,175 Cash and cash equivalents at end of period $ — $ 51,192 $ 1,483 $ — $ 52,675 |
Quarterly Results of Operatio35
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of the unaudited quarterly results of operations | The following is a summary of the unaudited quarterly results of operations for the years ended December 31, 2017 and 2016 : Quarter Ended March 31 June 30 Sept. 30 Dec. 31 (In thousands) 2017 Revenue $ 20,595 $ 23,700 $ 24,013 $ 21,942 Operating income (loss) (7,324 ) (3,307 ) 1,219 1,793 Net loss (13,379 ) (9,636 ) (6,344 ) (2,122 ) Quarter Ended March 31 June 30 Sept. 30 Dec. 31 (In thousands) 2016 Revenue $ 11,950 $ 24,340 $ 23,255 $ 35,001 Operating income (loss) (9,132 ) (5,144 ) (1,086 ) 10,635 Net income (loss) (13,864 ) (9,235 ) (5,443 ) 4,118 |
Basis of Presentation and Sig36
Basis of Presentation and Significant Accounting Policies - New Accounting Pronouncements (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Quantification | $ 0.2 |
Basis of Presentation and Sig37
Basis of Presentation and Significant Accounting Policies - Revenue from Data Acquisition (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum [Member] | |
Revenue from External Customer | |
Average Duration of the Data Creation Process | 12 months |
Maximum [Member] | |
Revenue from External Customer | |
Average Duration of the Data Creation Process | 18 months |
Basis of Presentation and Sig38
Basis of Presentation and Significant Accounting Policies - Payment terms (Details) | 12 Months Ended |
Dec. 31, 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 |
Basis of Presentation and Sig39
Basis of Presentation and Significant Accounting Policies - Activity related to non-monetary exchanges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Non-monetary Transaction | |||
Additions to seismic data library | $ 2,064 | $ 2,640 | $ 9,311 |
Non-cash revenue | 1,620 | 3,308 | 6,928 |
Seismic Data Library [Member] | |||
Non-monetary Transaction | |||
Additions to seismic data library | 2,064 | 2,640 | 9,311 |
Specific data licenses or selections of data [Member] | |||
Non-monetary Transaction | |||
Non-cash revenue | 1,250 | 3,179 | 6,747 |
Acquisition contracts [Member] | |||
Non-monetary Transaction | |||
Non-cash revenue | 279 | 129 | 168 |
Solutions and other revenue [Member] | |||
Non-monetary Transaction | |||
Non-cash revenue | $ 91 | $ 0 | $ 13 |
Basis of Presentation and Sig40
Basis of Presentation and Significant Accounting Policies - Concentration Risks (Details) - Customer Concentration Risk [Member] - Sales [Member] - customer | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Product Information [Line Items] | |||
Customers above benchmark (in customers) | 2 | 1 | 2 |
Concentration risk, percentage | 10.00% | 10.00% | 10.00% |
Customer A | |||
Product Information [Line Items] | |||
Concentration risk, percentage | 11.30% | 16.30% | |
Customer B | |||
Product Information [Line Items] | |||
Concentration risk, percentage | 10.10% | ||
Customer C | |||
Product Information [Line Items] | |||
Concentration risk, percentage | 14.50% | ||
Customer D | |||
Product Information [Line Items] | |||
Concentration risk, percentage | 12.50% |
Basis of Presentation and Sig41
Basis of Presentation and Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 0.5 | $ 0.7 | $ 0.9 |
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property and equipment | 3 years | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Useful life of property and equipment | 5 years |
Basis of Presentation and Sig42
Basis of Presentation and Significant Accounting Policies - Goodwill and Other Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Usefule life of finite-lived intangible assets | 7 years |
Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Usefule life of finite-lived intangible assets | 10 years |
Basis of Presentation and Sig43
Basis of Presentation and Significant Accounting Policies - Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Examination [Line Items] | ||||
United States statutory rate | 21.00% | 35.00% | 35.00% | 35.00% |
Seitel Mexicana [Member] | ||||
Income Tax Examination [Line Items] | ||||
Undistributed Earnings of Foreign Subsidiaries | $ (0.4) | |||
Seitel Canada [Member] | ||||
Income Tax Examination [Line Items] | ||||
Undistributed Earnings of Foreign Subsidiaries | $ (37.1) |
Basis of Presentation and Sig44
Basis of Presentation and Significant Accounting Policies - Foreign Currency Translation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Accumulated translation losses | $ 8,800,000 | $ 16,300,000 | |
Foreign currency exchange gains (losses) | $ 8,000 | $ 109,000 | $ (1,650,000) |
Basis of Presentation and Sig45
Basis of Presentation and Significant Accounting Policies - Other Income (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other income | $ 1.8 |
Basis of Presentation and Sig46
Basis of Presentation and Significant Accounting Policies - Employee Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Savings plan expense | $ 0.7 | $ 0.4 | $ 0.5 |
Seismic Data Library (Details)
Seismic Data Library (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 01, 2018 | |
Seismic Data Library [Abstract] | ||||
Straight-line amortization period | 4 years | |||
Net book value of seismic data library, projects in progress | 6.00% | 5.00% | ||
Internal data processing costs capitalized | $ 2,600 | $ 2,900 | $ 3,500 | |
Lowest amortization rate using the income forecast method | 70.00% | |||
Amortization of seismic data library | $ 76,500 | $ 70,200 | $ 75,900 | |
Amortization as percentage of total seismic revenue, rate | 87.00% | 76.00% | 78.00% | |
Actual aggregate rate of amortization | 70.00% | |||
Asset impairment charges | $ 0 | $ 0 | $ 0 |
Seismic Data Library - Summary
Seismic Data Library - Summary of the net book value of the Company’s seismic data library (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Long-Lived Assets Held and Used [Line Items] | ||
Net seismic data library | $ 74,542 | $ 115,922 |
U.S. Offshore [Member] | ||
Long-Lived Assets Held and Used [Line Items] | ||
Net seismic data library | 165 | 168 |
Unconventional 3D [Member] | U.S. Onshore [Member] | ||
Long-Lived Assets Held and Used [Line Items] | ||
Net seismic data library | 57,697 | 96,457 |
Unconventional 3D [Member] | Canada [Member] | ||
Long-Lived Assets Held and Used [Line Items] | ||
Net seismic data library | 12,215 | 16,361 |
Conventional 3D [Member] | U.S. Onshore [Member] | ||
Long-Lived Assets Held and Used [Line Items] | ||
Net seismic data library | 3,234 | 2,103 |
Conventional 3D [Member] | Canada [Member] | ||
Long-Lived Assets Held and Used [Line Items] | ||
Net seismic data library | 86 | 154 |
2D [Member] | Canada [Member] | ||
Long-Lived Assets Held and Used [Line Items] | ||
Net seismic data library | 291 | 415 |
2D [Member] | Mexico [Member] | ||
Long-Lived Assets Held and Used [Line Items] | ||
Net seismic data library | $ 854 | $ 264 |
Goodwill and Other Intangible49
Goodwill and Other Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill and Intangible Asset Impairment | $ 0 | $ 0 | $ 0 |
Amortization Expense | |||
Amortization expense for the Company's intangibles | $ 500 | $ 4,200 | $ 4,200 |
Goodwill and Other Intangible50
Goodwill and Other Intangibles - Changes in the carrying amount of goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill [Roll Forward] | ||
Balance at beginning of year | $ 182,012 | $ 179,792 |
Translation adjustments | 5,231 | 2,220 |
Balance at end of year | $ 187,243 | $ 182,012 |
Goodwill and Other Intangible51
Goodwill and Other Intangibles - Summary of the Company’s intangible assets other than goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 49,485 | $ 48,344 |
Accumulated amortization, finite-lived intangible assets | (49,485) | (47,826) |
Net book value | 0 | 518 |
Total intangible assets at net book value | $ 900 | 1,418 |
Customer Relationships [Member] | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Amortization period | 10 years | |
Finite-lived intangible assets, gross | $ 42,073 | 41,419 |
Accumulated amortization, finite-lived intangible assets | $ (42,073) | (40,901) |
Internally Developed Software [Member] | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Amortization period | 7 years | |
Finite-lived intangible assets, gross | $ 7,412 | 6,925 |
Accumulated amortization, finite-lived intangible assets | (7,412) | (6,925) |
Trade Names [Member] | ||
Schedule of Finite and Indefinite Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 900 | $ 900 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Examination [Line Items] | |||
Income tax expense from mandatory deemed repatriation of foreign earnings | $ 0 | ||
Decrease (increase) during the period | 34,349,000 | $ (6,675,000) | |
Tax benefit recorded as a result of lapse in statute of limitations | 300,000 | 400,000 | |
Unrecognized tax benefits that would impact the effective income tax rate if recognized in future periods | 300,000 | ||
Unrecognized tax benefits, accrued interest | 100,000 | 400,000 | |
Unrecognized tax benefits, accrued penalties | 0 | 0 | |
Interest on unrecognized tax benefits | (100,000) | (100,000) | $ 500,000 |
Internal Revenue Service (IRS) [Member] | |||
Income Tax Examination [Line Items] | |||
NOL carryforwards | 228,500,000 | ||
State and Local Jurisdiction [Member] | |||
Income Tax Examination [Line Items] | |||
NOL carryforwards | 5,400,000 | ||
Alternative Minimum Tax Credit Carryforward [Member] | |||
Income Tax Examination [Line Items] | |||
AMT credit carryforward | 200,000 | ||
Seitel Canada [Member] | Canada Revenue Agency [Member] | |||
Income Tax Examination [Line Items] | |||
Total tax benefit recorded as a result of settlements with taxing authorities | 2,300,000 | ||
UNITED STATES | Remeasurement of net deferred tax assets due to Tax Act [Member] | |||
Income Tax Examination [Line Items] | |||
Decrease (increase) during the period | 38,400,000 | ||
UNITED STATES | Reassessment of the realizability of AMT credit [Member] | |||
Income Tax Examination [Line Items] | |||
Decrease (increase) during the period | 2,400,000 | ||
UNITED STATES | Net operating income (loss) generated [Member] | |||
Income Tax Examination [Line Items] | |||
Decrease (increase) during the period | (13,000,000) | (8,600,000) | |
UNITED STATES | Expiration and forfeiture of stock options [Member] | |||
Income Tax Examination [Line Items] | |||
Decrease (increase) during the period | 4,800,000 | ||
UNITED STATES | Uncertain tax positions adjusted due to lapse in statute of limitations and the Tax Act [Member] | |||
Income Tax Examination [Line Items] | |||
Decrease (increase) during the period | $ 1,700,000 | ||
UNITED STATES | Uncertain tax positions adjusted due to settlement [Member] | |||
Income Tax Examination [Line Items] | |||
Decrease (increase) during the period | $ 2,000,000 |
Income Taxes - Income (loss) be
Income Taxes - Income (loss) before income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ (39,082) | $ (25,221) | $ (20,234) |
Foreign | 6,916 | (2,599) | (9,851) |
Loss before income taxes | $ (32,166) | $ (27,820) | $ (30,085) |
Income Taxes - Provision (benef
Income Taxes - Provision (benefit) for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current Income Tax Expense (Benefit): | |||
Federal | $ 0 | $ 0 | $ (4) |
State | 26 | 96 | 132 |
Foreign | 2,917 | 465 | 65 |
Current income tax provision (benefit) | 2,943 | 561 | 193 |
Deferred Income Tax Expense (Benefit): | |||
Deferred Federal Income Tax Expense (Benefit) | (2,357) | 0 | 80,586 |
State | 41 | (53) | 1,119 |
Foreign | (1,312) | (3,904) | (1,993) |
Deferred income tax provision (benefit) | (3,628) | (3,957) | 79,712 |
Tax provision (benefit): | |||
Federal | (2,357) | 0 | 80,582 |
State | 67 | 43 | 1,251 |
Foreign | 1,605 | (3,439) | (1,928) |
Income tax provision (benefit) | $ (685) | $ (3,396) | $ 79,905 |
Income Taxes - The differences
Income Taxes - The differences between the U.S. Federal income taxes computed at the statutory rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 22, 2017 | |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | |||||
United States statutory rate | 21.00% | 35.00% | 35.00% | 35.00% | |
Statutory federal income tax | $ (11,258) | $ (9,737) | $ (10,530) | ||
Impact of U.S. tax reform | (2,366) | 0 | 0 | ||
Change in unrecognized tax benefits | (341) | (2,780) | 422 | ||
State income tax, less federal benefit | 50 | 9 | (6) | ||
Tax difference on foreign earnings | (562) | 225 | 871 | ||
Change in foreign taxes | 0 | 0 | 415 | ||
Change in valuation allowance | 13,535 | 8,606 | 88,737 | ||
Tax credits | 0 | 0 | (346) | ||
Non-deductible expenses | 196 | 180 | 359 | ||
Other, net | 61 | 101 | (17) | ||
Income tax provision (benefit) | (685) | $ (3,396) | $ 79,905 | ||
Remeasurement of net deferred tax assets | 38,400 | ||||
Tax benefit for unutilized AMT credits | $ 2,400 | ||||
Valuation allowance on AMT credit | $ 2,500 |
Income Taxes - The components o
Income Taxes - The components of the net deferred income tax asset (liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 22, 2017 | |
Deferred tax assets: | |||
Depreciation and amortization | $ 7,354 | $ 10,210 | |
Deferred revenue | 1,808 | 2,115 | |
Net operating loss carryforwards | 50,353 | 74,656 | |
Alternative minimum tax credit carryforward | 167 | 2,523 | $ 2,500 |
Accrued expenses and other | 2,328 | 7,891 | |
Total deferred tax assets | 62,010 | 97,395 | |
Deferred tax liabilities: | |||
Depreciation and amortization | (1,785) | (3,315) | |
Intangible assets | (189) | (487) | |
Deferred expenses and other | (129) | (138) | |
Total deferred tax liabilities | (2,103) | (3,940) | |
Valuation allowance: | |||
Beginning balance | (95,412) | (88,737) | |
Decrease (increase) during the period | 34,349 | (6,675) | |
Total valuation allowance | (61,063) | (95,412) | |
Net deferred tax asset (liability) | (1,156) | (1,957) | |
Deferred income tax asset | 203 | 257 | |
Deferred income tax liability | $ (1,359) | $ (2,214) |
Income Taxes - A reconciliation
Income Taxes - A reconciliation of the beginning and ending gross unrecognized tax benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at beginning of year | $ 493 | $ 4,618 | $ 5,274 |
Additions (reductions) based on prior year tax positions | 0 | (2,156) | (197) |
Reductions related to settlements with taxing authorities | 0 | 1,783 | 0 |
Reductions as a result of a lapse of statute of limitations | (250) | (449) | 0 |
Foreign currency translation | 36 | 263 | (853) |
Balance at end of year | $ 279 | $ 493 | $ 4,618 |
Debt (Details)
Debt (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Mar. 20, 2013 | |
Debt Instrument [Line Items] | |||
9½% Senior Notes | $ 250,000,000 | $ 250,000,000 | |
Unamortized debt issuance costs | (1,858,000) | (3,143,000) | |
Senior Notes, net of unamortized debt issuance costs | 248,142,000 | 246,857,000 | |
Aggregate Maturities | |||
Aggregate maturities of debt, 2018 | 0 | ||
Aggregate maturities of debt, 2019 | 250,000,000 | ||
Aggregate maturities of debt, 2020 | 0 | ||
Aggregate maturities of debt, 2021 | 0 | ||
Aggregate maturities of debt, 2022 | $ 0 | ||
Senior Notes [Member] | 9½% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of senior notes | $ 250,000,000 | ||
Interest rate of senior notes | 9.50% | ||
Call premium | 101.00% | ||
Accrued interest payable | $ 5,000,000 | $ 5,000,000 |
Lease Obligations (Details)
Lease Obligations (Details) $ in Millions | Apr. 30, 2002 | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2017CAD | Dec. 31, 2017USD ($) |
Schedule of Capital and Operating Leased Assets [Line Items] | ||||||
Operating Leases, Rent Expense | $ 1.1 | $ 1.1 | $ 1.3 | |||
Term of capital lease (in years) | 20 years | |||||
Future minimum annual payments due under sale leaseback from May 2017 until April 2022 | CAD | CAD 452,340 | |||||
Property and Equipment [Member] | ||||||
Schedule of Capital and Operating Leased Assets [Line Items] | ||||||
Assets recorded under capital lease obligations | 2.8 | $ 3 | ||||
Accumulated depreciation related to assets under capital lease obligations | $ 1.8 | $ 2.1 |
Lease Obligations - Schedule of
Lease Obligations - Schedule of future minimum lease payments (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Capital Leases | |
Capital Leases, 2018 | $ 361 |
Capital Leases, 2019 | 361 |
Capital Leases, 2020 | 361 |
Capital Leases, 2021 | 360 |
Capital Leases, 2022 | 120 |
Capital Leases, Thereafter | 0 |
Total minimum lease payments | 1,563 |
Less amount representing interest | (200) |
Present value of net minimum lease payments | 1,363 |
Operating Leases | |
Operating Leases, 2018 | 622 |
Operating Leases, 2019 | 573 |
Operating Leases, 2020 | 265 |
Operating Leases, 2021 | 202 |
Operating Leases, 2022 | 185 |
Operating Leases, Thereafter | 0 |
Total minimum lease payments | $ 1,847 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | May 31, 2012 | Apr. 30, 2008 | Feb. 14, 2007 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Grant date fair value of options that vested | $ 300,000 | $ 600,000 | $ 600,000 | |||
Tax benefits recognized from stock-based compensation | $ 0 | $ 0 | $ 0 | |||
Shares available for grant under plan at the end of the period | 16,000 | 26,000 | 10,000 | |||
Cash received from exercise of stock options | $ 0 | $ 0 | $ 0 | |||
Options granted | 0 | 0 | 0 | |||
Selling, General and Administrative Expenses [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation cost | $ 10,000 | $ 100,000 | $ 300,000 | |||
Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Future compensation cost related to non-vested options not yet recognized | 1,800,000 | |||||
Stock Options [Member] | Nonvested Awards, Time-based Vesting [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Future compensation cost related to non-vested options not yet recognized | $ 4,000 | |||||
2008 Restricted Stock and Restricted Stock Unit Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available to purchase from stock-based compensation plans | 25,000 | |||||
RSUs converted into shares of Holdings | 0 | 71 | 0 | |||
Number of RSUs outstanding | 1,574 | |||||
Grant date fair value of RSUs outstanding | $ 258 | |||||
Shares available for grant under plan at the end of the period | 22,659 | |||||
2007 Option Plan [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available to purchase from stock-based compensation plans | 105,200 | |||||
Shares available for grant under plan at the end of the period | 0 | |||||
Expiration Period | 10 years | |||||
2007 Option Plan [Member] | Stock Options [Member] | Grant Date Anniversary for Issuances in 2007 through 2010 and 2012 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 25.00% | |||||
2012 Option Plan [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available to purchase from stock-based compensation plans | 48,605 | |||||
Vesting period | 5 years | |||||
Shares available for grant under plan at the end of the period | 16,305 | |||||
Expiration Period | 10 years | |||||
2012 Option Plan [Member] | Stock Options [Member] | Tranch 1, Service Performance Condition of 5 Years [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 33.33% | |||||
2012 Option Plan [Member] | Stock Options [Member] | Grant Date Anniversary [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 20.00% | |||||
2012 Option Plan [Member] | Stock Options [Member] | Tranch 2, Market Performance Condition of 2 times Event [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 33.33% | |||||
2012 Option Plan [Member] | Stock Options [Member] | Tranch 3, Market Performance Condition of 2 point 5 times Event [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting percentage | 33.33% |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock option activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Options | ||||
Outstanding at beginning of period, Options | 114 | 130 | 130 | |
Forfeited, Options | (8) | (16) | 0 | |
Expired, Options | (62) | 0 | 0 | |
Outstanding at end of period, Options | 44 | [1] | 114 | 130 |
Weighted Average Exercise Price | ||||
Outstanding at beginning of period, Weighted Average Exercise Price | $ 217.24 | $ 218.46 | $ 218.46 | |
Forfeited, Weighted Average Exercise Price | 200.95 | 227.19 | 0 | |
Expired, Weighted Average Exercise Price | 193.13 | 0 | 0 | |
Outstanding at end of period, Weighted Average Exercise Price | $ 243.26 | [1] | $ 217.24 | $ 218.46 |
Stock option activity, additional disclosure | ||||
Options exercisable at end of period, Options | 22 | [2] | 85 | 93 |
Options exercisable at end of period, Weighted Average Exercise Price | $ 228.81 | [2] | $ 203.48 | $ 202.48 |
Available for grant at end of period | 16 | 26 | 10 | |
Stock options outstanding, weighted average remaining contractual term | 3 years 8 months 24 days | |||
Stock options outstanding, intrinsic value | $ 0 | |||
Exercisable stock options, weighted average remaining contractual term | 3 years 1 month 24 days | |||
Stock options exercisable, intrinsic value | $ 0 | |||
[1] | Stock options outstanding at December 31, 2017 have a weighted average remaining contractual term of 3.7 years and there is no intrinsic value. | |||
[2] | Exercisable stock options at December 31, 2017 have a weighted average remaining contractual term of 3.1 years and there is no intrinsic value. |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 70,298 | $ 55,674 |
Quoted Prices in Active Markets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 70,298 | 55,674 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
Fair Value Measurements - (Othe
Fair Value Measurements - (Other Financial Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Unamortized debt issuance costs | $ 1,858 | $ 3,143 |
Book Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | 248,100 | 246,900 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Senior Notes | $ 250,300 | $ 232,600 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | |||
Advances to Seitel Holdings, Inc. | $ 14,000 | $ 21,000 | $ 13,000 |
Due from Seitel Holdings, Inc. | 1,191,000 | 1,177,000 | |
Seitel Holdings, Inc. [Member] | |||
Related Party Transaction [Line Items] | |||
Advances to Seitel Holdings, Inc. | 14,000 | 21,000 | 13,000 |
Due from Seitel Holdings, Inc. | $ 1,200,000 | 1,200,000 | |
Wandoo Energy LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Cost method investment, ownership percentage | 20.00% | ||
Proceeds from cash dividends | $ 0 | $ 10,000 | $ 0 |
Statement of Cash Flow Inform66
Statement of Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Income taxes paid | $ 0.8 | $ 1.5 | $ 0.3 |
Income tax refunds | 0 | 5.1 | $ 1 |
Seismic Operations Bonds [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Restricted cash and cash equivalents | $ 0.6 | $ 0.5 |
Statement of Cash Flow Inform67
Statement of Cash Flow Information (Non-Cash Additions and Non-Cash Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Non-monetary Transaction | |||
Non-monetary exchanges related to resale licensing | $ 2,075 | $ 1,840 | $ 9,300 |
Non-monetary exchanges from underwriting of new data acquisition | 0 | 408 | 0 |
Adjustment to prior year non-monetary exchanges | (11) | 0 | (2) |
Non-monetary exchanges related to data processing and reproduction services | 0 | 392 | 13 |
Total non-cash additions to seismic data library | 2,064 | 2,640 | 9,311 |
Non-cash revenue | 1,620 | 3,308 | 6,928 |
Acquisition revenue on underwriting [Member] | |||
Non-monetary Transaction | |||
Non-cash revenue | 279 | 129 | 168 |
Licensing revenue from specific data licenses and selections [Member] | |||
Non-monetary Transaction | |||
Non-cash revenue | 1,250 | 3,179 | 6,747 |
Solutions revenue [Member] | |||
Non-monetary Transaction | |||
Non-cash revenue | $ 91 | $ 0 | $ 13 |
Industry Segments - Geographic
Industry Segments - Geographic information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)Segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||
Segment Reporting Information [Line Items] | ||||||||||||
Number of Operating Segments | Segment | 1 | |||||||||||
Revenue | $ 21,942 | $ 24,013 | $ 23,700 | $ 20,595 | $ 35,001 | $ 23,255 | $ 24,340 | $ 11,950 | $ 90,250 | $ 94,546 | $ 100,252 | |
Assets (1) | [1] | 76,141 | 117,631 | 76,141 | 117,631 | 163,966 | ||||||
United States [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | 63,782 | 75,353 | 74,592 | |||||||||
Assets (1) | [1] | 61,690 | 99,339 | 61,690 | 99,339 | 132,264 | ||||||
Canada [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | 25,456 | 17,790 | 25,660 | |||||||||
Assets (1) | [1] | 13,597 | 18,028 | 13,597 | 18,028 | 31,586 | ||||||
Mexico [Member] | ||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||
Revenue | 1,012 | 1,403 | 0 | |||||||||
Assets (1) | [1] | $ 854 | $ 264 | $ 854 | $ 264 | $ 116 | ||||||
[1] | Assets include net seismic data library and net property and equipment. |
Industry Segments - Revenue by
Industry Segments - Revenue by type of service (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)category | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Revenue from External Customer | |||||||||||
Number of Revenue Categories by Type of Service | category | 2 | ||||||||||
Revenue | $ 21,942 | $ 24,013 | $ 23,700 | $ 20,595 | $ 35,001 | $ 23,255 | $ 24,340 | $ 11,950 | $ 90,250 | $ 94,546 | $ 100,252 |
Acquisition and licensing of seismic data [Member] | |||||||||||
Revenue from External Customer | |||||||||||
Revenue | 88,158 | 92,454 | 97,938 | ||||||||
Reproduction and delivery of seismic data and other services [Member] | |||||||||||
Revenue from External Customer | |||||||||||
Revenue | $ 2,092 | $ 2,092 | $ 2,314 |
Supplemental Guarantors Conso70
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 Conso71
Supplemental Guarantors Consolidating Condensed Financial Information - (Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||||
Cash and cash equivalents | $ 70,581 | $ 55,997 | $ 52,675 | $ 59,175 |
Receivables | ||||
Trade, net | 23,330 | 24,481 | ||
Notes and other | 2,617 | 436 | ||
Due from Seitel Holdings, Inc. | 1,191 | 1,177 | ||
Intercompany receivables (payables) | 0 | 0 | ||
Investment in subsidiaries | 0 | 0 | ||
Net seismic data library | 74,542 | 115,922 | ||
Net property and equipment | 1,599 | 1,709 | ||
Prepaid expenses, deferred charges and other | 1,842 | 1,762 | ||
Intangible assets, net | 900 | 1,418 | ||
Goodwill | 187,243 | 182,012 | 179,792 | |
Deferred income taxes | 203 | 257 | ||
TOTAL ASSETS | 364,048 | 385,171 | ||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||
Accounts payable and accrued liabilities | 20,198 | 17,007 | ||
Income taxes payable | 2,777 | 620 | ||
Senior Notes | 248,142 | 246,857 | ||
Obligations under capital leases | 1,363 | 1,510 | ||
Deferred revenue | 13,095 | 15,904 | ||
Deferred income taxes | 1,359 | 2,214 | ||
TOTAL LIABILITIES | 286,934 | 284,112 | ||
STOCKHOLDER’S EQUITY | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 400,592 | 400,582 | ||
Parent investment | 0 | 0 | ||
Retained deficit | (314,671) | (283,190) | ||
Accumulated other comprehensive loss | (8,807) | (16,333) | ||
TOTAL STOCKHOLDER’S EQUITY | 77,114 | 101,059 | ||
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY | 364,048 | 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 | (837,861) | (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 | (837,861) | (841,418) | ||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||
Accounts payable and accrued liabilities | 0 | 0 | ||
Income taxes payable | 0 | |||
Senior Notes | 0 | 0 | ||
Obligations under capital leases | 0 | 0 | ||
Deferred revenue | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
TOTAL LIABILITIES | 0 | 0 | ||
STOCKHOLDER’S EQUITY | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 0 | 0 | ||
Parent investment | (920,887) | (920,699) | ||
Retained deficit | 82,674 | 79,040 | ||
Accumulated other comprehensive loss | 352 | 241 | ||
TOTAL STOCKHOLDER’S EQUITY | (837,861) | (841,418) | ||
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY | (837,861) | (841,418) | ||
Parent [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Receivables | ||||
Trade, net | 0 | 0 | ||
Notes and other | 2,357 | 0 | ||
Due from Seitel Holdings, Inc. | 0 | 0 | ||
Intercompany receivables (payables) | (75,641) | (51,982) | ||
Investment in subsidiaries | 411,423 | 420,308 | ||
Net seismic data library | 0 | 0 | ||
Net property and equipment | 0 | 0 | ||
Prepaid expenses, deferred charges and other | 31 | 30 | ||
Intangible assets, net | 900 | 900 | ||
Goodwill | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
TOTAL ASSETS | 339,070 | 369,256 | ||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||
Accounts payable and accrued liabilities | 5,007 | 5,007 | ||
Income taxes payable | 0 | |||
Senior Notes | 248,142 | 246,857 | ||
Obligations under capital leases | 0 | 0 | ||
Deferred revenue | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
TOTAL LIABILITIES | 253,149 | 251,864 | ||
STOCKHOLDER’S EQUITY | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 400,592 | 400,582 | ||
Parent investment | 0 | 0 | ||
Retained deficit | (314,671) | (283,190) | ||
Accumulated other comprehensive loss | 0 | 0 | ||
TOTAL STOCKHOLDER’S EQUITY | 85,921 | 117,392 | ||
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY | 339,070 | 369,256 | ||
Guarantor Subsidiaries [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 43,380 | 47,971 | 51,192 | 48,525 |
Receivables | ||||
Trade, net | 19,183 | 14,819 | ||
Notes and other | 151 | 412 | ||
Due from Seitel Holdings, Inc. | 1,191 | 1,177 | ||
Intercompany receivables (payables) | 73,244 | 51,262 | ||
Investment in subsidiaries | 425,736 | 420,456 | ||
Net seismic data library | 57,703 | 94,039 | ||
Net property and equipment | 593 | 611 | ||
Prepaid expenses, deferred charges and other | 1,164 | 1,413 | ||
Intangible assets, net | 0 | 402 | ||
Goodwill | 107,688 | 107,688 | ||
Deferred income taxes | 51 | 92 | ||
TOTAL ASSETS | 730,084 | 740,342 | ||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||
Accounts payable and accrued liabilities | 9,421 | 8,559 | ||
Income taxes payable | 12 | |||
Senior Notes | 0 | 0 | ||
Obligations under capital leases | 0 | 0 | ||
Deferred revenue | 11,568 | 13,574 | ||
Deferred income taxes | 0 | 0 | ||
TOTAL LIABILITIES | 21,001 | 22,157 | ||
STOCKHOLDER’S EQUITY | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 0 | 0 | ||
Parent investment | 764,105 | 764,105 | ||
Retained deficit | (55,022) | (45,920) | ||
Accumulated other comprehensive loss | 0 | 0 | ||
TOTAL STOCKHOLDER’S EQUITY | 709,083 | 718,185 | ||
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY | 730,084 | 740,342 | ||
Non-Guarantor Subsidiaries [Member] | ||||
ASSETS | ||||
Cash and cash equivalents | 27,201 | 8,026 | $ 1,483 | $ 10,650 |
Receivables | ||||
Trade, net | 4,147 | 9,662 | ||
Notes and other | 109 | 24 | ||
Due from Seitel Holdings, Inc. | 0 | 0 | ||
Intercompany receivables (payables) | 2,397 | 720 | ||
Investment in subsidiaries | 702 | 630 | ||
Net seismic data library | 16,839 | 21,907 | ||
Net property and equipment | 1,006 | 1,098 | ||
Prepaid expenses, deferred charges and other | 647 | 319 | ||
Intangible assets, net | 0 | 116 | ||
Goodwill | 79,555 | 74,324 | ||
Deferred income taxes | 152 | 165 | ||
TOTAL ASSETS | 132,755 | 116,991 | ||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||
Accounts payable and accrued liabilities | 5,770 | 3,441 | ||
Income taxes payable | 2,765 | |||
Senior Notes | 0 | 0 | ||
Obligations under capital leases | 1,363 | 1,510 | ||
Deferred revenue | 1,527 | 2,330 | ||
Deferred income taxes | 1,359 | 2,214 | ||
TOTAL LIABILITIES | 12,784 | 10,091 | ||
STOCKHOLDER’S EQUITY | ||||
Common stock | 0 | 0 | ||
Additional paid-in capital | 0 | 0 | ||
Parent investment | 156,782 | 156,594 | ||
Retained deficit | (27,652) | (33,120) | ||
Accumulated other comprehensive loss | (9,159) | (16,574) | ||
TOTAL STOCKHOLDER’S EQUITY | 119,971 | 106,900 | ||
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY | $ 132,755 | $ 116,991 |
Supplemental Guarantors Conso72
Supplemental Guarantors Consolidating Condensed Financial Information - (Statement of Operations) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
REVENUE | $ 21,942,000 | $ 24,013,000 | $ 23,700,000 | $ 20,595,000 | $ 35,001,000 | $ 23,255,000 | $ 24,340,000 | $ 11,950,000 | $ 90,250,000 | $ 94,546,000 | $ 100,252,000 |
EXPENSES: | |||||||||||
Depreciation and amortization | 77,482,000 | 75,078,000 | 80,923,000 | ||||||||
Cost of sales | 96,000 | 76,000 | 195,000 | ||||||||
Selling, general and administrative | 20,291,000 | 24,119,000 | 22,184,000 | ||||||||
Total operating expenses | 97,869,000 | 99,273,000 | 103,302,000 | ||||||||
INCOME (LOSS) FROM OPERATIONS | 1,793,000 | 1,219,000 | (3,307,000) | (7,324,000) | 10,635,000 | (1,086,000) | (5,144,000) | (9,132,000) | (7,619,000) | (4,727,000) | (3,050,000) |
Interest expense, net | (24,652,000) | (24,967,000) | (25,390,000) | ||||||||
Foreign currency exchange gains (losses) | 8,000 | 109,000 | (1,650,000) | ||||||||
Other income | 97,000 | 1,765,000 | 5,000 | ||||||||
Loss before income taxes | (32,166,000) | (27,820,000) | (30,085,000) | ||||||||
Provision (benefit) for income taxes | (685,000) | (3,396,000) | 79,905,000 | ||||||||
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | ||||||||
NET LOSS | $ (2,122,000) | $ (6,344,000) | $ (9,636,000) | $ (13,379,000) | $ 4,118,000 | $ (5,443,000) | $ (9,235,000) | $ (13,864,000) | (31,481,000) | (24,424,000) | (109,990,000) |
Consolidation, Eliminations [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
REVENUE | (1,837,000) | (1,382,000) | (1,319,000) | ||||||||
EXPENSES: | |||||||||||
Depreciation and amortization | (25,000) | (50,000) | (49,000) | ||||||||
Cost of sales | (549,000) | (50,000) | 0 | ||||||||
Selling, general and administrative | (1,288,000) | (1,332,000) | (1,319,000) | ||||||||
Total operating expenses | (1,862,000) | (1,432,000) | (1,368,000) | ||||||||
INCOME (LOSS) FROM OPERATIONS | 25,000 | 50,000 | 49,000 | ||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||
Foreign currency exchange gains (losses) | 0 | 0 | 0 | ||||||||
Other income | 0 | 0 | 0 | ||||||||
Loss before income taxes | 25,000 | 50,000 | 49,000 | ||||||||
Provision (benefit) for income taxes | 0 | 0 | 0 | ||||||||
Equity in income (loss) of subsidiaries | 3,609,000 | (546,000) | 84,713,000 | ||||||||
NET LOSS | 3,634,000 | (496,000) | 84,762,000 | ||||||||
Parent [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
REVENUE | 0 | 0 | 0 | ||||||||
EXPENSES: | |||||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Cost of sales | 0 | 0 | 0 | ||||||||
Selling, general and administrative | 595,000 | 1,078,000 | 1,016,000 | ||||||||
Total operating expenses | 595,000 | 1,078,000 | 1,016,000 | ||||||||
INCOME (LOSS) FROM OPERATIONS | (595,000) | (1,078,000) | (1,016,000) | ||||||||
Interest expense, net | (24,166,000) | (22,910,000) | (22,845,000) | ||||||||
Foreign currency exchange gains (losses) | 0 | 0 | 0 | ||||||||
Other income | 0 | 0 | 0 | ||||||||
Loss before income taxes | (24,761,000) | (23,988,000) | (23,861,000) | ||||||||
Provision (benefit) for income taxes | (2,357,000) | 0 | 9,270,000 | ||||||||
Equity in income (loss) of subsidiaries | (9,077,000) | (436,000) | (76,859,000) | ||||||||
NET LOSS | (31,481,000) | (24,424,000) | (109,990,000) | ||||||||
Guarantor Subsidiaries [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
REVENUE | 62,231,000 | 73,667,000 | 72,593,000 | ||||||||
EXPENSES: | |||||||||||
Depreciation and amortization | 59,263,000 | 55,934,000 | 51,455,000 | ||||||||
Cost of sales | 639,000 | 112,000 | 123,000 | ||||||||
Selling, general and administrative | 16,232,000 | 17,590,000 | 15,362,000 | ||||||||
Total operating expenses | 76,134,000 | 73,636,000 | 66,940,000 | ||||||||
INCOME (LOSS) FROM OPERATIONS | (13,903,000) | 31,000 | 5,653,000 | ||||||||
Interest expense, net | (599,000) | (2,043,000) | (2,146,000) | ||||||||
Foreign currency exchange gains (losses) | (1,000) | 0 | (3,000) | ||||||||
Other income | 0 | 587,000 | 5,000 | ||||||||
Loss before income taxes | (14,503,000) | (1,425,000) | 3,509,000 | ||||||||
Provision (benefit) for income taxes | 67,000 | 43,000 | 72,563,000 | ||||||||
Equity in income (loss) of subsidiaries | 5,468,000 | 982,000 | (7,854,000) | ||||||||
NET LOSS | (9,102,000) | (486,000) | (76,908,000) | ||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
REVENUE | 29,856,000 | 22,261,000 | 28,978,000 | ||||||||
EXPENSES: | |||||||||||
Depreciation and amortization | 18,244,000 | 19,194,000 | 29,517,000 | ||||||||
Cost of sales | 6,000 | 14,000 | 72,000 | ||||||||
Selling, general and administrative | 4,752,000 | 6,783,000 | 7,125,000 | ||||||||
Total operating expenses | 23,002,000 | 25,991,000 | 36,714,000 | ||||||||
INCOME (LOSS) FROM OPERATIONS | 6,854,000 | (3,730,000) | (7,736,000) | ||||||||
Interest expense, net | 113,000 | (14,000) | (399,000) | ||||||||
Foreign currency exchange gains (losses) | 9,000 | 109,000 | (1,647,000) | ||||||||
Other income | 97,000 | 1,178,000 | 0 | ||||||||
Loss before income taxes | 7,073,000 | (2,457,000) | (9,782,000) | ||||||||
Provision (benefit) for income taxes | 1,605,000 | (3,439,000) | (1,928,000) | ||||||||
Equity in income (loss) of subsidiaries | 0 | 0 | 0 | ||||||||
NET LOSS | $ 5,468,000 | $ 982,000 | $ (7,854,000) |
Supplemental Guarantors Conso73
Supplemental Guarantors Consolidating Condensed Financial Information - (Statement of Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income (loss) | $ (2,122) | $ (6,344) | $ (9,636) | $ (13,379) | $ 4,118 | $ (5,443) | $ (9,235) | $ (13,864) | $ (31,481) | $ (24,424) | $ (109,990) |
Foreign currency translation adjustments | 7,526 | 3,190 | (21,211) | ||||||||
Comprehensive income (loss) | (23,955) | (21,234) | (131,201) | ||||||||
Consolidation, Eliminations [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income (loss) | 3,634 | (496) | 84,762 | ||||||||
Foreign currency translation adjustments | 111 | 85 | 138 | ||||||||
Comprehensive income (loss) | 3,745 | (411) | 84,900 | ||||||||
Parent [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income (loss) | (31,481) | (24,424) | (109,990) | ||||||||
Foreign currency translation adjustments | 0 | 0 | 0 | ||||||||
Comprehensive income (loss) | (31,481) | (24,424) | (109,990) | ||||||||
Guarantor Subsidiaries [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income (loss) | (9,102) | (486) | (76,908) | ||||||||
Foreign currency translation adjustments | 0 | 0 | 0 | ||||||||
Comprehensive income (loss) | (9,102) | (486) | (76,908) | ||||||||
Non-Guarantor Subsidiaries [Member] | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Net income (loss) | 5,468 | 982 | (7,854) | ||||||||
Foreign currency translation adjustments | 7,415 | 3,105 | (21,349) | ||||||||
Comprehensive income (loss) | $ 12,883 | $ 4,087 | $ (29,203) |
Supplemental Guarantors Conso74
Supplemental Guarantors Consolidating Condensed Financial Information - (Statement of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net cash provided by (used in) operating activities | $ 40,354 | $ 30,543 | $ 72,636 |
Cash flows from investing activities: | |||
Cash invested in seismic data | (26,170) | (26,662) | (77,281) |
Cash paid to acquire property and equipment | (534) | (304) | (432) |
Cash from sale of seismic data and property and equipment | 182 | 18 | 0 |
Advances to Seitel Holdings, Inc. | (14) | (21) | (13) |
Net cash used in investing activities | (26,536) | (26,969) | (77,726) |
Cash flows from financing activities: | |||
Principal payments on capital lease obligations | (244) | (205) | (218) |
Intercompany transfers | 0 | 0 | 0 |
Net cash used in financing activities | (244) | (205) | (218) |
Effect of exchange rate changes | 1,010 | (47) | (1,192) |
Net increase (decrease) in cash and cash equivalents | 14,584 | 3,322 | (6,500) |
Cash and cash equivalents at beginning of period | 55,997 | 52,675 | 59,175 |
Cash and cash equivalents at end of period | 70,581 | 55,997 | 52,675 |
Consolidation, Eliminations [Member] | |||
Cash flows from operating activities: | |||
Net cash provided by (used in) operating activities | 0 | 0 | 0 |
Cash flows from investing activities: | |||
Cash invested in seismic data | 0 | 0 | 0 |
Cash paid to acquire property and equipment | 0 | 0 | 0 |
Cash from sale of seismic data and property and equipment | 0 | 0 | |
Advances to Seitel Holdings, Inc. | 0 | 0 | 0 |
Net cash used in investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Principal payments on capital lease obligations | 0 | 0 | 0 |
Intercompany transfers | 0 | 0 | 0 |
Net cash used in financing activities | 0 | 0 | 0 |
Effect of exchange rate changes | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 | 0 |
Parent [Member] | |||
Cash flows from operating activities: | |||
Net cash provided by (used in) operating activities | (24,355) | (24,625) | (24,717) |
Cash flows from investing activities: | |||
Cash invested in seismic data | 0 | 0 | 0 |
Cash paid to acquire property and equipment | 0 | 0 | 0 |
Cash from sale of seismic data and property and equipment | 0 | 0 | |
Advances to Seitel Holdings, Inc. | 0 | 0 | 0 |
Net cash used in investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Principal payments on capital lease obligations | 0 | 0 | 0 |
Intercompany transfers | 24,355 | 24,625 | 24,717 |
Net cash used in financing activities | 24,355 | 24,625 | 24,717 |
Effect of exchange rate changes | 0 | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 | 0 |
Guarantor Subsidiaries [Member] | |||
Cash flows from operating activities: | |||
Net cash provided by (used in) operating activities | 38,037 | 44,564 | 80,698 |
Cash flows from investing activities: | |||
Cash invested in seismic data | (17,835) | (24,581) | (63,858) |
Cash paid to acquire property and equipment | (423) | (274) | (422) |
Cash from sale of seismic data and property and equipment | 0 | 17 | |
Advances to Seitel Holdings, Inc. | (14) | (21) | (13) |
Net cash used in investing activities | (18,272) | (24,859) | (64,293) |
Cash flows from financing activities: | |||
Principal payments on capital lease obligations | 0 | 0 | (18) |
Intercompany transfers | (24,355) | (22,926) | (13,717) |
Net cash used in financing activities | (24,355) | (22,926) | (13,735) |
Effect of exchange rate changes | (1) | 0 | (3) |
Net increase (decrease) in cash and cash equivalents | (4,591) | (3,221) | 2,667 |
Cash and cash equivalents at beginning of period | 47,971 | 51,192 | 48,525 |
Cash and cash equivalents at end of period | 43,380 | 47,971 | 51,192 |
Non-Guarantor Subsidiaries [Member] | |||
Cash flows from operating activities: | |||
Net cash provided by (used in) operating activities | 26,672 | 10,604 | 16,655 |
Cash flows from investing activities: | |||
Cash invested in seismic data | (8,335) | (2,081) | (13,423) |
Cash paid to acquire property and equipment | (111) | (30) | (10) |
Cash from sale of seismic data and property and equipment | 182 | 1 | |
Advances to Seitel Holdings, Inc. | 0 | 0 | 0 |
Net cash used in investing activities | (8,264) | (2,110) | (13,433) |
Cash flows from financing activities: | |||
Principal payments on capital lease obligations | (244) | (205) | (200) |
Intercompany transfers | 0 | (1,699) | (11,000) |
Net cash used in financing activities | (244) | (1,904) | (11,200) |
Effect of exchange rate changes | 1,011 | (47) | (1,189) |
Net increase (decrease) in cash and cash equivalents | 19,175 | 6,543 | (9,167) |
Cash and cash equivalents at beginning of period | 8,026 | 1,483 | 10,650 |
Cash and cash equivalents at end of period | $ 27,201 | $ 8,026 | $ 1,483 |
Quarterly Results of Operatio75
Quarterly Results of Operations (Unaudited) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue | $ 21,942 | $ 24,013 | $ 23,700 | $ 20,595 | $ 35,001 | $ 23,255 | $ 24,340 | $ 11,950 | $ 90,250 | $ 94,546 | $ 100,252 |
Operating income (loss) | 1,793 | 1,219 | (3,307) | (7,324) | 10,635 | (1,086) | (5,144) | (9,132) | (7,619) | (4,727) | (3,050) |
Net income (loss) | $ (2,122) | $ (6,344) | $ (9,636) | $ (13,379) | $ 4,118 | $ (5,443) | $ (9,235) | $ (13,864) | $ (31,481) | $ (24,424) | $ (109,990) |
Schedule II_ Valuation and Qu76
Schedule II: Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 95,635 | $ 89,004 | $ 268 |
Charged (credited) to expense | (27,808) | 8,621 | 88,741 |
Deductions from reserves | (6,588) | (1,990) | (5) |
Balance at end of period | 61,239 | 95,635 | 89,004 |
Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 223 | 267 | 268 |
Charged (credited) to expense | 0 | (20) | 4 |
Deductions from reserves | (47) | (24) | (5) |
Balance at end of period | 176 | 223 | 267 |
Valuation Allowance on Deferred Tax Assets [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 95,412 | 88,737 | 0 |
Charged (credited) to expense | (27,808) | 8,641 | 88,737 |
Deductions from reserves | (6,541) | (1,966) | 0 |
Balance at end of period | $ 61,063 | $ 95,412 | $ 88,737 |