Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 03, 2014 | Jun. 28, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'ION GEOPHYSICAL CORP | ' | ' |
Entity Central Index Key | '0000866609 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $885.40 |
Entity Common Stock, Shares Outstanding | ' | 163,737,757 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $148,056 | $60,971 |
Accounts receivable, net | 149,448 | 127,136 |
Unbilled receivables | 49,468 | 89,784 |
Inventories | 57,173 | 70,675 |
Prepaid expenses and other current assets | 24,772 | 25,605 |
Total current assets | 428,917 | 374,171 |
Deferred income tax asset | 14,650 | 28,414 |
Property, plant, equipment and seismic rental equipment net | 46,684 | 33,772 |
Multi-client data library, net | 238,784 | 230,315 |
Equity method investments | 53,865 | 73,925 |
Goodwill | 55,876 | 55,349 |
Intangible assets, net | 11,247 | 14,841 |
Other assets | 14,648 | 9,796 |
Total assets | 864,671 | 820,583 |
Current liabilities: | ' | ' |
Current maturities of long-term debt | 5,906 | 3,496 |
Accounts payable | 22,654 | 28,688 |
Accrued expenses | 84,358 | 124,095 |
Accrued multi-client data library royalties | 46,460 | 26,300 |
Deferred revenue | 20,682 | 26,899 |
Total current liabilities | 180,060 | 209,478 |
Long-term debt, net of current maturities | 214,246 | 101,832 |
Other long-term liabilities | 210,602 | 8,131 |
Total liabilities | 604,908 | 319,441 |
Redeemable noncontrolling interest | 1,878 | 2,123 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Cumulative convertible preferred stock | 0 | 27,000 |
Common stock, $0.01 par value; authorized 200,000,000 shares; outstanding 163,737,757 and 156,356,949 shares at December 31, 2013 and 2012, respectively, net of treasury stock | 1,637 | 1,564 |
Additional paid-in capital | 879,969 | 848,669 |
Accumulated deficit | -606,157 | -360,297 |
Accumulated other comprehensive loss | -11,138 | -11,886 |
Treasury stock, at cost, 849,539 shares at both December 31, 2013 and 2012 | -6,565 | -6,565 |
Total stockholders’ equity | 257,746 | 498,485 |
Noncontrolling interests | 139 | 534 |
Total equity | 257,885 | 499,019 |
Total liabilities and equity | $864,671 | $820,583 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares outstanding | 163,737,757 | 156,356,949 |
Treasury stock, shares | 849,539 | 849,539 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Statement [Abstract] | ' | ' | ' |
Service revenues | $391,317 | $354,583 | $265,586 |
Product revenues | 157,850 | 171,734 | 189,035 |
Total net revenues | 549,167 | 526,317 | 454,621 |
Cost of services | 277,508 | 219,324 | 177,956 |
Cost of products | 112,346 | 91,192 | 103,220 |
Gross profit | 159,313 | 215,801 | 173,445 |
Operating expenses: | ' | ' | ' |
Research, development and engineering | 37,742 | 34,080 | 24,569 |
Marketing and sales | 38,583 | 35,240 | 31,269 |
General, administrative, and other operating expense | 66,592 | 71,954 | 50,812 |
Total operating expenses | 142,917 | 141,274 | 106,650 |
Income from operations | 16,396 | 74,527 | 66,795 |
Interest expense, net | -12,344 | -5,265 | -5,784 |
Equity in earnings (losses) of investments | -42,320 | 297 | -22,862 |
Other income (expense) | -182,530 | 17,124 | -3,447 |
Income (loss) before income taxes | -220,798 | 86,683 | 34,702 |
Income tax expense | 25,720 | 23,857 | 10,136 |
Net income (loss) | -246,518 | 62,826 | 24,566 |
Net loss attributable to noncontrolling interests | 658 | 489 | 208 |
Net income (loss) attributable to ION | -245,860 | 63,315 | 24,774 |
Preferred stock dividends | 1,014 | 1,352 | 1,352 |
Conversion payment of preferred stock | 5,000 | 0 | 0 |
Net income (loss) applicable to common shares | ($251,874) | $61,963 | $23,422 |
Net income per share: | ' | ' | ' |
Basic, in dollars per share | ($1.59) | $0.40 | $0.15 |
Diluted, in dollars per share | ($1.59) | $0.39 | $0.15 |
Weighted average number of common shares outstanding: | ' | ' | ' |
Basic, in shares | 158,506 | 155,801 | 154,811 |
Diluted, in shares | 158,506 | 162,765 | 156,090 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income (loss) | ($246,518) | $62,826 | $24,566 |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' |
Foreign currency translation adjustments | 713 | 2,756 | -28 |
Equity interest in investee’s other comprehensive income (loss) | -373 | 1,003 | 315 |
Unrealized income (loss) on available-for-sale securities | 277 | 425 | -730 |
Other changes in other comprehensive income (loss) | 131 | 123 | -220 |
Total other comprehensive income (loss), net of taxes | 748 | 4,307 | -663 |
Comprehensive net income (loss) | -245,770 | 67,133 | 23,903 |
Comprehensive loss attributable to noncontrolling interest | 658 | 489 | 208 |
Comprehensive net income (loss) attributable to ION | ($245,112) | $67,622 | $24,111 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income (loss) | ($246,518) | $62,826 | $24,566 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization (other than multi-client library) | 18,158 | 16,202 | 13,917 |
Amortization of multi-client data library | 86,716 | 89,080 | 77,317 |
Stock-based compensation expense | 7,476 | 6,598 | 6,344 |
Equity in (earnings) losses of investments | 42,320 | -297 | 22,862 |
Gain on sale of cost method investment | -3,591 | 0 | 0 |
Accrual for loss contingency related to legal proceedings | 183,327 | 10,000 | 0 |
Write-down of multi-client data library projects | 5,461 | 0 | 0 |
Write-down of receivables from OceanGeo | 9,157 | 0 | 0 |
Write-down excess and obsolete inventory | 21,197 | 1,326 | 567 |
Write-down of marine equipment | 0 | 5,928 | 0 |
Write-down of investments | 0 | 556 | 1,312 |
Deferred income taxes | 4,844 | 3,686 | -8,131 |
Excess tax benefit from stock-based compensation | -276 | -193 | -3,294 |
Change in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | -27,571 | 4,006 | -52,955 |
Unbilled receivables | 40,211 | -64,156 | 44,962 |
Inventories | -8,906 | -7,039 | -6,641 |
Accounts payable, accrued expenses and accrued royalties | 8,482 | 61,873 | -7,546 |
Deferred revenue | -6,253 | -6,957 | 15,957 |
Other assets and liabilities | 13,353 | -14,358 | 747 |
Net cash provided by operating activities | 147,587 | 169,081 | 129,984 |
Cash flows from investing activities: | ' | ' | ' |
Investment in multi-client data library | -114,582 | -145,627 | -143,782 |
Purchase of property, plant, equipment and seismic rental equipment | -16,914 | -16,650 | -11,060 |
Net advances to INOVA Geophysical | -5,000 | 0 | 0 |
Investment in and advances to OceanGeo B.V. | -24,755 | 0 | 0 |
Proceeds from sale of a cost method investment | 4,150 | 0 | 0 |
Maturity (net purchases) of short-term investments | 0 | 20,000 | -20,000 |
Investment in a convertible notes | -2,000 | -2,000 | -6,500 |
Other investing activities | 128 | 0 | -280 |
Net cash provided by (used in) investing activities | -158,973 | -144,277 | -181,622 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from issuance of notes | 175,000 | 0 | 0 |
Payments under revolving line of credit | -97,250 | -51,000 | 0 |
Borrowings under revolving line of credit | 35,000 | 148,250 | 0 |
Payments on notes payable and long-term debt | -4,361 | -101,702 | -6,145 |
Cost associated with issuance of notes | -6,773 | 0 | 0 |
Payment of preferred dividends | -1,014 | -1,352 | -1,352 |
Conversion payment of preferred stock | -5,000 | 0 | 0 |
Proceeds from employee stock purchases and exercise of stock options | 2,527 | 807 | 13,105 |
Excess tax benefit from stock-based compensation | 276 | 193 | 3,294 |
Contribution from noncontrolling interests | 0 | 212 | 961 |
Other financing activities | 297 | -1,862 | -59 |
Net cash provided by (used in) financing activities | 98,702 | -6,454 | 9,804 |
Effect of change in foreign currency exchange rates on cash and cash equivalents | -231 | 219 | -183 |
Net increase (decrease) in cash and cash equivalents | 87,085 | 18,569 | -42,017 |
Cash and cash equivalents at beginning of period | 60,971 | 42,402 | 84,419 |
Cash and cash equivalents at end of period | $148,056 | $60,971 | $42,402 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Cumulative Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interests | |
Beginning balance at Dec. 31, 2010 | $380,447,000 | $27,000,000 | $1,529,000 | $822,399,000 | ($448,386,000) | ($15,530,000) | ($6,565,000) | $0 | |
Beginning balance, Shares at Dec. 31, 2010 | ' | 27,000 | 152,870,679 | ' | ' | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | |
Net income (loss) | [1] | 24,651,000 | ' | ' | ' | 24,774,000 | ' | ' | -123,000 |
Translation adjustment | -60,000 | ' | ' | ' | ' | -28,000 | ' | -32,000 | |
Change in fair value of effective cash flow hedges (net of taxes) | -220,000 | ' | ' | ' | ' | -220,000 | ' | ' | |
Equity interest in INOVA Geophysical's other comprehensive income | 315,000 | ' | ' | ' | ' | 315,000 | ' | ' | |
Unrealized net income (loss) on available-for-sale securities | -730,000 | ' | ' | ' | ' | -730,000 | ' | ' | |
Preferred stock dividends | -1,352,000 | ' | ' | -1,352,000 | ' | ' | ' | ' | |
Stock-based compensation expense | 6,344,000 | ' | ' | 6,344,000 | ' | ' | ' | ' | |
Exercise of stock options, shares | 2,145,792 | ' | 2,145,792 | ' | ' | ' | ' | ' | |
Exercise of stock options | 13,105,000 | ' | 21,000 | 13,084,000 | ' | ' | ' | ' | |
Vesting of restricted stock units/ awards, shares | ' | ' | 449,231 | ' | ' | ' | ' | ' | |
Vesting of restricted stock units/awards | 0 | ' | 5,000 | -5,000 | ' | ' | ' | ' | |
Restricted stock cancelled for employee minimum income taxes, shares | ' | ' | -93,488 | ' | ' | ' | ' | ' | |
Restricted stock cancelled for employee minimum income taxes | -683,000 | ' | -1,000 | -682,000 | ' | ' | ' | ' | |
Issuance of stock for the ESPP, shares | ' | ' | 107,562 | ' | ' | ' | ' | ' | |
Issuance of stock for the ESPP | 624,000 | ' | 1,000 | 623,000 | ' | ' | ' | ' | |
Tax benefits from stock-based compensation | 2,860,000 | ' | ' | 2,860,000 | ' | ' | ' | ' | |
Contribution from noncontrolling interest | 511,000 | ' | ' | ' | ' | ' | ' | 511,000 | |
Ending balance at Dec. 31, 2011 | 425,812,000 | 27,000,000 | 1,555,000 | 843,271,000 | -423,612,000 | -16,193,000 | -6,565,000 | 356,000 | |
Ending balance, Shares at Dec. 31, 2011 | ' | 27,000 | 155,479,776 | ' | ' | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | |
Net income (loss) | [1] | 63,319,000 | ' | ' | ' | 63,315,000 | ' | ' | 4,000 |
Translation adjustment | 2,718,000 | ' | ' | ' | ' | 2,756,000 | ' | -38,000 | |
Change in fair value of effective cash flow hedges (net of taxes) | 123,000 | ' | ' | ' | ' | 123,000 | ' | ' | |
Equity interest in INOVA Geophysical's other comprehensive income | 1,003,000 | ' | ' | ' | ' | 1,003,000 | ' | ' | |
Unrealized net income (loss) on available-for-sale securities | 425,000 | ' | ' | ' | ' | 425,000 | ' | ' | |
Preferred stock dividends | -1,352,000 | ' | ' | -1,352,000 | ' | ' | ' | ' | |
Stock-based compensation expense | 6,598,000 | ' | ' | 6,598,000 | ' | ' | ' | ' | |
Exercise of stock options, shares | 194,410 | ' | 194,410 | ' | ' | ' | ' | ' | |
Exercise of stock options | 807,000 | ' | 2,000 | 805,000 | ' | ' | ' | ' | |
Vesting of restricted stock units/ awards, shares | ' | ' | 764,704 | ' | ' | ' | ' | ' | |
Vesting of restricted stock units/awards | 0 | ' | 8,000 | -8,000 | ' | ' | ' | ' | |
Restricted stock cancelled for employee minimum income taxes, shares | ' | ' | -209,068 | ' | ' | ' | ' | ' | |
Restricted stock cancelled for employee minimum income taxes | -1,268,000 | ' | -2,000 | -1,266,000 | ' | ' | ' | ' | |
Issuance of stock for the ESPP, shares | ' | ' | 127,127 | ' | ' | ' | ' | ' | |
Issuance of stock for the ESPP | 759,000 | ' | 1,000 | 758,000 | ' | ' | ' | ' | |
Tax benefits from stock-based compensation | -137,000 | ' | ' | -137,000 | ' | ' | ' | ' | |
Contribution from noncontrolling interest | 212,000 | ' | ' | ' | ' | ' | ' | 212,000 | |
Net income attributable to redeemable noncontrolling interests | 500,000 | ' | ' | ' | ' | ' | ' | ' | |
Ending balance at Dec. 31, 2012 | 499,019,000 | 27,000,000 | 1,564,000 | 848,669,000 | -360,297,000 | -11,886,000 | -6,565,000 | 534,000 | |
Ending balance, Shares at Dec. 31, 2012 | ' | 27,000 | 156,356,949 | ' | ' | ' | ' | ' | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | ' | |
Net income (loss) | [1] | -246,199,000 | ' | ' | ' | -245,860,000 | ' | ' | -339,000 |
Translation adjustment | 657,000 | ' | ' | ' | ' | 713,000 | ' | -56,000 | |
Change in fair value of effective cash flow hedges (net of taxes) | 131,000 | ' | ' | ' | ' | 131,000 | ' | ' | |
Equity interest in INOVA Geophysical's other comprehensive income | -373,000 | ' | ' | ' | ' | -373,000 | ' | ' | |
Unrealized net income (loss) on available-for-sale securities | 277,000 | ' | ' | ' | ' | 277,000 | ' | ' | |
Preferred stock dividends | -1,014,000 | ' | ' | -1,014,000 | ' | ' | ' | ' | |
Conversion payment of preferred stock, Shares | ' | 27,000 | 6,065,075 | ' | ' | ' | ' | ' | |
Conversion payment of preferred stock | -5,000,000 | -27,000,000 | 61,000 | 21,939,000 | ' | ' | ' | ' | |
Stock-based compensation expense | 7,476,000 | ' | ' | 7,476,000 | ' | ' | ' | ' | |
Exercise of stock options, shares | 707,575 | ' | 707,575 | ' | ' | ' | ' | ' | |
Exercise of stock options | 2,527,000 | ' | 7,000 | 2,520,000 | ' | ' | ' | ' | |
Vesting of restricted stock units/ awards, shares | ' | ' | 578,369 | ' | ' | ' | ' | ' | |
Vesting of restricted stock units/awards | 0 | ' | 5,000 | -5,000 | ' | ' | ' | ' | |
Restricted stock cancelled for employee minimum income taxes, shares | ' | ' | -115,080 | ' | ' | ' | ' | ' | |
Restricted stock cancelled for employee minimum income taxes | -483,000 | ' | -1,000 | -482,000 | ' | ' | ' | ' | |
Issuance of stock for the ESPP, shares | ' | ' | 144,869 | ' | ' | ' | ' | ' | |
Issuance of stock for the ESPP | 780,000 | ' | 1,000 | 779,000 | ' | ' | ' | ' | |
Tax benefits from stock-based compensation | 87,000 | ' | ' | 87,000 | ' | ' | ' | ' | |
Net income attributable to redeemable noncontrolling interests | 300,000 | ' | ' | ' | ' | ' | ' | ' | |
Ending balance at Dec. 31, 2013 | $257,885,000 | $0 | $1,637,000 | $879,969,000 | ($606,157,000) | ($11,138,000) | ($6,565,000) | $139,000 | |
Ending balance, Shares at Dec. 31, 2013 | ' | 0 | 163,737,757 | ' | ' | ' | ' | ' | |
[1] | Net income attributable to noncontrolling interests for 2013, 2012 and 2011 excludes $(0.3) million, $(0.5) million and $(0.1) million, respectively, related to the redeemable noncontrolling interests, which is reported in the mezzanine equity section of the Consolidated Balance Sheet. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Summary of Significant Accounting Policies | ' | |||||||
Summary of Significant Accounting Policies | ||||||||
General Description and Principles of Consolidation | ||||||||
ION Geophysical Corporation and its subsidiaries offer a full suite of services and products for seismic data acquisition and processing. The consolidated financial statements include the accounts of ION Geophysical Corporation and its majority-owned subsidiaries (collectively referred to as the “Company” or “ION”). Intercompany balances and transactions have been eliminated. Certain reclassifications were made to previously reported amounts in the consolidated financial statements and notes thereto to make them consistent with the current presentation format. | ||||||||
Use of Estimates | ||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates are made at discrete points in time based on relevant market information. These estimates may be subjective in nature and involve uncertainties and matters of judgment and, therefore, cannot be determined with precision. Areas involving significant estimates include, but are not limited to, accounts and unbilled receivables, inventory valuation, sales forecasts related to multi-client data libraries, goodwill and intangible asset valuation and deferred taxes. Actual results could materially differ from those estimates. | ||||||||
Cash and Cash Equivalents | ||||||||
The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. At December 31, 2013 and 2012, there was $0.7 million and $1.5 million, respectively, of short-term restricted cash used to secure standby and commercial letters of credit, which is included within Prepaid Expenses and Other Current Assets. | ||||||||
Accounts and Unbilled Receivables | ||||||||
Accounts and unbilled receivables are recorded at cost, less the related allowance for doubtful accounts. The Company considers current information and events regarding the customers’ ability to repay their obligations, such as the length of time the receivable balance is outstanding, the customers’ credit worthiness and historical experience. Unbilled receivables relate to revenues recognized on multi-client surveys and imaging services on a proportionate basis and on licensing of multi-client data libraries for which invoices have not yet been presented to the customer. | ||||||||
Inventories | ||||||||
Inventories are stated at the lower of cost (primarily first-in, first-out method) or market. The Company provides reserves for estimated obsolescence or excess inventory equal to the difference between cost of inventory and its estimated market value based upon assumptions about future demand for the Company’s products, market conditions and the risk of obsolescence driven by new product introductions. | ||||||||
Property, Plant, Equipment and Seismic Rental Equipment | ||||||||
Property, plant, equipment and seismic rental equipment are stated at cost. Depreciation expense is provided straight-line over the following estimated useful lives: | ||||||||
Years | ||||||||
Machinery and equipment | 7-Mar | |||||||
Buildings | 25-May | |||||||
Seismic rental equipment | 5-Mar | |||||||
Leased equipment and other | 10-Mar | |||||||
Expenditures for renewals and betterments are capitalized; repairs and maintenance are charged to expense as incurred. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the accounts and any gain or loss is reflected in operating expenses. | ||||||||
The Company evaluates the recoverability of long-lived assets, including property, plant, equipment and seismic rental equipment, when indicators of impairment exist, relying on a number of factors including operating results, business plans, economic projections and anticipated future cash flows. Impairment in the carrying value of an asset held for use is recognized whenever anticipated future cash flows (undiscounted) from an asset are estimated to be less than its carrying value. The amount of the impairment recognized is the difference between the carrying value of the asset and its fair value. | ||||||||
Multi-Client Data Library | ||||||||
The multi-client data library consists of seismic surveys that are offered for licensing to customers on a non-exclusive basis. The capitalized costs include costs paid to third parties for the acquisition of data and related activities associated with the data creation activity and direct internal processing costs, such as salaries, benefits, computer-related expenses and other costs incurred for seismic data project design and management. For 2013, 2012 and 2011, the Company capitalized, as part of its multi-client data library, $2.1 million, $3.8 million and $2.4 million, respectively, of direct internal processing costs. At December 31, 2013 and 2012, multi-client data library costs and accumulated amortization consisted of the following (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Gross costs of multi-client data creation | $ | 786,061 | $ | 690,876 | ||||
Less accumulated amortization | (547,277 | ) | (460,561 | ) | ||||
Total | $ | 238,784 | $ | 230,315 | ||||
The Company’s method of amortizing the costs of an in-process multi-client data library (the period during which the seismic data is being acquired and/or processed, referred to as the “new venture” phase) consists of determining the percentage of actual revenue recognized to the total estimated revenues (which includes both revenues estimated to be realized during the new venture phase and estimated revenues from the licensing of the resulting “on-the-shelf” data survey) and multiplying that percentage by the total cost of the project (the sales forecast method). The Company considers a multi-client data survey to be complete when all work on the creation of the seismic data is finished and that data survey is available for licensing. Once a multi-client data survey is complete, the data survey is considered “on-the-shelf” and the Company’s method of amortization is then the greater of (i) the sales forecast method or (ii) the straight-line basis over a four-year period. The greater amount of amortization resulting from the sales forecast method or the straight-line amortization policy is applied on a cumulative basis at the individual survey level. Under this policy, the Company first records amortization using the sales forecast method. The cumulative amortization recorded for each survey is then compared with the cumulative straight-line amortization. The four-year period utilized in this cumulative comparison commences when the data survey is determined to be complete. 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. The Company has determined the amortization period of four years based upon its historical experience that indicates that the majority of its revenues from multi-client surveys are derived during the acquisition and processing phases and during four years subsequent to survey completion. | ||||||||
The Company estimates the ultimate revenue expected to be derived from a particular seismic data survey over its estimated useful economic life to determine the costs to amortize, if greater than straight-line amortization. That estimate is made by the Company at the project’s initiation. For a completed multi-client survey, the Company reviews the estimate quarterly. If during any such review, the Company determines that the ultimate revenue for a survey is expected to be materially more or less than the original estimate of ultimate revenue for such survey, the Company decreases or increases (as the case may be) the amortization rate attributable to the future revenue from such survey. In addition, in connection with such reviews, the Company evaluates the recoverability of the multi-client data library, and, if required under Accounting Standards Codification (“ASC”) 360-10 “Impairment and Disposal of Long-Lived Assets,” records an impairment charge with respect to such data. There were no significant impairment charges associated with the Company’s multi-client data library during 2012 and 2011. In 2013, the Company wrote down the multi-client data library by $5.5 million primarily due to cost overruns, which resulted in costs exceeding the sales forecast, triggering the impairment. | ||||||||
Cost Method Investments | ||||||||
Certain of the Company’s investments are accounted for under the cost method. The Company’s cost method investments that have quoted prices from active markets are classified as “available-for-sale” and revalued at each reporting date, with all unrealized gains or losses, net of taxes, included in accumulated other comprehensive income (outside of earnings) until realized or until such time that a decline in fair value below cost is deemed to be other-than-temporary. The Company’s cost method investments for which quoted market prices are not available are recorded at cost and reviewed periodically if there are events or changes in circumstances that may have a significant adverse effect on the fair value of the investments. | ||||||||
Equity Method Investments | ||||||||
In accordance with ASC 810 “Consolidation,” the Company considered whether OceanGeo B.V. (formerly known as GeoRXT B.V.; “OceanGeo”) and INOVA Geophysical were variable interest entities and concluded that both entities are variable interest entities. The Company also concluded that it was not the primary beneficiary of either variable interest entity. As such, the Company did not consolidate either entity and continued to use the equity method of accounting for both entities through December 31, 2013. Under this method, an investment is carried at the acquisition cost, plus the Company’s equity in undistributed earnings or losses since acquisition, less distributions received. As provided by ASC 815 “Investments,” the Company accounts for its share of earnings in INOVA Geophysical on a one fiscal quarter lag basis and accounts for its interest in OceanGeo on a current basis. See further discussion regarding the Company’s equity method investment in INOVA Geophysical and OceanGeo at Note 3 “Equity Method Investments.” | ||||||||
Noncontrolling Interests | ||||||||
The Company has both redeemable and non-redeemable noncontrolling interests. Non-redeemable noncontrolling interests in majority-owned affiliates are reported as a separate component of equity in “Noncontrolling interests” in the Consolidated Balance Sheets. Redeemable Noncontrolling Interests include noncontrolling ownership interests which provide the holders the rights, at certain times, to require the Company to acquire their ownership interest in those entities. These interests are not considered to be permanent equity and are reported in the mezzanine section of the Consolidated Balance Sheets at the greater of their carrying value or redemption value at the balance sheet date. Net income (loss) in the Consolidated Statements of Operations is attributable to both controlling and noncontrolling interests. | ||||||||
Goodwill and Other Intangible Assets | ||||||||
Goodwill is allocated to reporting units, which are either the operating segment or one reporting level below the operating segment. For purposes of performing the impairment test for goodwill as required by ASC 350 “Intangibles — Goodwill and Other,” (“ASC 350”) the Company established the following reporting units: Solutions, Software and Marine Systems. | ||||||||
In accordance with ASC 350, the Company is required to evaluate the carrying value of its goodwill at least annually for impairment, or more frequently if facts and circumstances indicate that it is more likely than not impairment has occurred. The Company formally evaluates the carrying value of its goodwill for impairment as of December 31 for each of its reporting units. The Company first performs a qualitative assessment by evaluating relevant events or circumstances to determine whether it is more likely than not that the fair value of a reporting unit exceeds its carrying amount. If the Company is unable to conclude qualitatively that it is more likely than not that a reporting unit’s fair value exceeds its carrying value, then it will use a two-step quantitative assessment of the fair value of a reporting unit. To determine the fair value of these reporting units, the Company uses a discounted future returns valuation model, which includes a variety of level 3 inputs. The key inputs for the model include the operational five-year forecast for the Company and the then-current market discount factor. Additionally, the Company compares the sum of the estimated fair values of the individual reporting units less consolidated debt to the Company’s overall market capitalization as reflected by the Company’s stock price. If the carrying value of a reporting unit that includes goodwill is determined to be more than the fair value of the reporting unit, there exists the possibility of impairment of goodwill. An impairment loss of goodwill is measured in two steps by first allocating the fair value of the reporting unit to net assets and liabilities including recorded and unrecorded intangible assets to determine the implied carrying value of goodwill. The next step is to measure the difference between the carrying value of goodwill and the implied carrying value of goodwill, and, if the implied carrying value of goodwill is less than the carrying value of goodwill, an impairment loss is recorded equal to the difference. See further discussion below at Note 7 “Goodwill.” | ||||||||
The intangible assets, other than goodwill, relate to customer relationships and intellectual property rights. The Company amortizes it’s intellectual property rights over the estimated periods of benefit (ranging from 4 to 5 years). The Company amortizes its customer relationship intangible assets on an accelerated basis over a 10- to 15-year period, using the undiscounted cash flows of the initial valuation models. The Company uses an accelerated basis as these intangible assets were initially valued using an income approach, with an attrition rate that resulted in a pattern of declining cash flows over a 10- to 15-year period. | ||||||||
Following the guidance of ASC 360 “Property, Plant and Equipment,” the Company reviews the carrying values of these intangible assets for impairment if events or changes in the facts and circumstances indicate that their carrying value may not be recoverable. Any impairment determined is recorded in the current period and is measured by comparing the fair value of the related asset to its carrying value. See further discussion below at Note 6 “Details of Selected Balance Sheet Accounts — Intangible Assets.” | ||||||||
Fair Value of Financial Instruments | ||||||||
The Company’s financial instruments include cash and cash equivalents, accounts and unbilled receivables, accounts payable, accrued multi-client data library royalties, investment in one convertible note from a privately owned U.S.-based technology company and long-term debt. The carrying amounts of cash and cash equivalents, short-term investments, accounts and unbilled receivables, accounts payable and accrued multi-client data library royalties approximate fair value due to the highly liquid nature of these instruments. The fair value of the long-term debt is calculated using a market approach based upon Level 3 inputs, including an estimated interest rate reflecting current market conditions. The Company performs a fair value analysis with respect to its investment in the convertible notes using a market approach based upon Level 3 inputs, including the terms and likelihood of an investment event and the time to conversion or repayment. | ||||||||
Revenue Recognition | ||||||||
The Company derives revenue from the sale of (i) multi-client and proprietary surveys, licenses of “on-the-shelf” data libraries and imaging services within its Solutions segment; (ii) acquisition systems and other seismic equipment within its Systems segment; and (iii) navigation, survey and quality control software systems within its Software segment. All revenues of the Solutions segment and the services component of revenues for the Software segment are classified as services revenues. All other revenues are classified as product revenues. | ||||||||
Multi-Client and Proprietary Surveys, Data Libraries and Imaging Services — As multi-client surveys are being designed, acquired and/or processed (referred to as the “new venture” phase), the Company enters into non-exclusive licensing arrangements with its customers. License revenues from these new venture survey projects are recognized during the new venture phase as the seismic data is acquired and/or processed on a proportionate basis as work is performed. Under this method, the Company recognizes revenues based upon quantifiable measures of progress, such as kilometers acquired or days processed. Upon completion of a multi-client seismic survey, the seismic survey is considered “on-the-shelf,” and licenses to the survey data are granted to customers on a non-exclusive basis. Revenues on licenses of completed multi-client data surveys are recognized when (a) a signed final master geophysical data license agreement and accompanying supplemental license agreement are returned by the customer; (b) the purchase price for the license is fixed or determinable; (c) delivery or performance has occurred; (d) and no significant uncertainty exists as to the customer’s obligation, willingness or ability to pay. In limited situations, the Company has provided the customer with a right to exchange seismic data for another specific seismic data set. In these limited situations, the Company recognizes revenue at the earlier of the customer exercising its exchange right or the expiration of the customer’s exchange right. | ||||||||
The Company also performs seismic surveys under contracts to specific customers, whereby the seismic data is owned by those customers. Revenue is recognized as the seismic data is acquired and/or processed on a proportionate basis as work is performed. The Company uses quantifiable measures of progress consistent with its multi-client surveys. | ||||||||
Revenues from all imaging and other services are recognized when persuasive evidence of an arrangement exists, the price is fixed or determinable, and collectibility is reasonably assured. Revenues from contract services performed on a day-rate basis are recognized as the service is performed. | ||||||||
Acquisition Systems and Other Seismic Equipment — For the sales of acquisition systems and other seismic equipment, the Company follows the requirements of ASC 605-10 “Revenue Recognition” and recognizes revenue when (a) evidence of an arrangement exists; (b) the price to the customer is fixed and determinable; (c) collectibility is reasonably assured; and (d) the acquisition system or other seismic equipment is delivered to the customer and risk of ownership has passed to the customer, or, in the case in which a substantive customer-specified acceptance clause exists in the contract, the later of delivery or when the customer-specified acceptance is obtained. | ||||||||
Software — For the sales of navigation, survey and quality control software systems, the Company follows the requirements of ASC 985-605 “Software Revenue Recognition” (“ASC 985-605”). The Company recognizes revenue from sales of these software systems when (a) evidence of an arrangement exists; (b) the price to the customer is fixed and determinable; (c) collectibility is reasonably assured; and (d) the software is delivered to the customer and risk of ownership has passed to the customer, or, in the limited case in which a substantive customer-specified acceptance clause exists, the later of delivery or when the customer-specified acceptance is obtained. These arrangements generally include the Company providing related services, such as training courses, engineering services and annual software maintenance. The Company allocates revenue to each element of the arrangement based upon vendor-specific objective evidence (“VSOE”) of fair value of the element or, if VSOE is not available for the delivered element, the Company applies the residual method. | ||||||||
In addition to perpetual software licenses, the Company offers time-based software licenses. For time-based licenses, the Company recognizes revenue ratably over the contract term, which is generally two to five years. | ||||||||
Multiple-element Arrangements — When separate elements (such as an acquisition system, other seismic equipment and/or imaging services) are contained in a single sales arrangement, or in related arrangements with the same customer, the Company follows the requirements of ASC 605-25 “Accounting for Multiple-Element Revenue Arrangement” (“ASC 605-25”). The Company adopted this guidance as of January 1, 2010. Accordingly, the Company applied this guidance to transactions initiated or materially modified on or after January 1, 2010. The guidance does not apply to software sales accounted for under ASC 985-605. The Company also adopted, in the same period, guidance within ASC 985-605 that excludes from its scope revenue arrangements that include both tangible products and software elements, such that the tangible products contain both software and non-software components that function together to deliver the tangible product’s essential functionality. | ||||||||
This guidance requires that arrangement consideration be allocated at the inception of an arrangement to all deliverables using the relative selling price method. The Company allocates arrangement consideration to each deliverable qualifying as a separate unit of accounting in an arrangement based on its relative selling price. The Company determines its selling price using VSOE, if it exists, or otherwise third-party evidence (“TPE”). If neither VSOE nor TPE of selling price exists for a unit of accounting, the Company uses estimated selling price (“ESP”). The Company generally expects that it will not be able to establish TPE due to the nature of the markets in which the Company competes, and, as such, the Company typically will determine its selling price using VSOE or, if not available, ESP. VSOE is generally limited to the price charged when the same or similar product is sold on a standalone basis. If a product is seldom sold on a standalone basis, it is unlikely that the Company can determine VSOE for the product. | ||||||||
The objective of ESP is to determine the price at which the Company would transact if the product were sold by the Company on a standalone basis. The Company’s determination of ESP involves a weighting of several factors based on the specific facts and circumstances of the arrangement. Specifically, the Company considers the anticipated margin on the particular deliverable, the selling price and profit margin for similar products and the Company’s ongoing pricing strategy and policies. | ||||||||
The Company believes this guidance principally impacts its Systems segment. A typical arrangement within the Systems segment involves the sale of various products of the Company’s acquisition systems and other seismic equipment. Products under these arrangements are often delivered to the customer within the same period, but in certain situations, depending upon product availability and the customer’s delivery requirements, the products could be delivered to the customer at different times. In these situations, the Company considers its products to be separate units of accounting provided the delivered product has value to the customer on a standalone basis. The Company considers a deliverable to have standalone value if the product is sold separately by the Company or another vendor or could be resold by the customer. Further, the Company’s revenue arrangements generally do not include a general right of return relative to the delivered products. | ||||||||
Product Warranty — The Company generally warrants that its manufactured equipment will be free from defects in workmanship, materials and parts. Warranty periods generally range from 30 days to three years from the date of original purchase, depending on the product. The Company provides for estimated warranty as a charge to costs of sales at the time of sale. However, new information may become available, or circumstances (such as applicable laws and regulations) may change, thereby resulting in an increase or decrease in the amount required to be accrued for such matters (and therefore a decrease or increase in reported net income in the period of such change). In limited cases, the Company has provided indemnification of customers for potential intellectual property infringement claims relating to products sold. | ||||||||
Research, Development and Engineering | ||||||||
Research, development and engineering costs primarily relate to activities that are designed to improve the quality of the subsurface image and overall acquisition economics of the Company’s customers. The costs associated with these activities are expensed as incurred. These costs include prototype material and field testing expenses, along with the related salaries and stock-based compensation, facility costs, consulting fees, tools and equipment usage and other miscellaneous expenses associated with these activities. | ||||||||
Stock-Based Compensation | ||||||||
The Company accounts for stock-based compensation under the provisions of ASC 718, “Compensation – Stock Compensation” (“ASC 718”). The Company estimates the value of stock option awards on the date of grant using the Black-Scholes option pricing model. The determination of the fair value of stock-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of subjective variables. These variables include, but are not limited to, expected stock price volatility over the term of the awards, actual and projected employee stock option exercise behaviors, risk-free interest rate and expected dividends. The Company recognizes stock-based compensation on the straight-line basis over the service period of each award (generally the award’s vesting period). | ||||||||
Income Taxes | ||||||||
Income taxes are accounted for under the liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, including operating loss and tax credit carry-forwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The Company records a valuation allowance when it is more likely than not that all or a portion of deferred tax assets will not be realized (see Note 11 “Income Taxes”). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | ||||||||
Comprehensive Net Income (Loss) | ||||||||
Comprehensive net income (loss) as shown in the Consolidated Statements of Comprehensive Income (Loss) and the balance in Accumulated Other Comprehensive Income (Loss) as shown in the Consolidated Balance Sheets as of December 31, 2013 and 2012, consist of foreign currency translation adjustments, equity interest in INOVA Geophysical’s accumulated other comprehensive income and unrealized gains or losses on available-for-sale securities. | ||||||||
Foreign Currency Gains and Losses | ||||||||
Assets and liabilities of the Company’s subsidiaries operating outside the United States that have a functional currency other than the U.S. dollar have been translated to U.S. dollars using the exchange rate in effect at the balance sheet date. Results of foreign operations have been translated using the average exchange rate during the periods of operation. Resulting translation adjustments have been recorded as a component of Accumulated Other Comprehensive Income (Loss). Foreign currency transaction gains and losses are included in the Consolidated Statements of Operations in Other Income (Expense) as they occur. Total foreign currency transaction gains (losses) were $(1.1) million, $(1.9) million and $(1.7) million for 2013, 2012 and 2011, respectively. | ||||||||
Concentration of Foreign Sales Risk | ||||||||
The majority of the Company’s foreign sales are denominated in U.S. dollars. For 2013, 2012 and 2011, international sales comprised 73%, 69% and 66%, respectively, of total net revenues. Since 2008, global economic problems and uncertainties have generally increased in scope and nature. To the extent that world events or economic conditions negatively affect the Company’s future sales to customers in many regions of the world, as well as the collectability of the Company’s existing receivables, the Company’s future results of operations, liquidity and financial condition would be adversely affected. |
Segment_and_Geographic_Informa
Segment and Geographic Information | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Segment and Geographic Information | ' | |||||||||||
Segment and Geographic Information | ||||||||||||
The Company evaluates and reviews its results based on three segments: Solutions, Systems and Software. The Company measures segment operating results based on income from operations. In addition, the Company has equity ownership interests in two joint ventures: INOVA Geophysical and OceanGeo. See Note 3 “Equity Method Investments” for the summarized financial information for INOVA Geophysical and OceanGeo. | ||||||||||||
A summary of segment information is as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net revenues: | ||||||||||||
Solutions: | ||||||||||||
New Venture | $ | 154,578 | $ | 147,346 | $ | 98,335 | ||||||
Data Library | 111,998 | 88,085 | 76,332 | |||||||||
Total multi-client revenues | 266,576 | 235,431 | 174,667 | |||||||||
Data Processing | 120,808 | 115,834 | 88,783 | |||||||||
Total | $ | 387,384 | $ | 351,265 | $ | 263,450 | ||||||
Systems: | ||||||||||||
Towed Streamer | $ | 66,991 | $ | 77,769 | $ | 111,453 | ||||||
Ocean Bottom | 7,307 | 14,823 | 960 | |||||||||
Other | 48,134 | 39,404 | 40,591 | |||||||||
Total | $ | 122,432 | $ | 131,996 | $ | 153,004 | ||||||
Software: | ||||||||||||
Software Systems | $ | 35,418 | $ | 39,738 | $ | 36,031 | ||||||
Services | 3,933 | 3,318 | 2,136 | |||||||||
Total | $ | 39,351 | $ | 43,056 | $ | 38,167 | ||||||
Total | $ | 549,167 | $ | 526,317 | $ | 454,621 | ||||||
Gross profit: | ||||||||||||
Solutions | $ | 111,108 | $ | 132,950 | $ | 84,647 | ||||||
Systems | 19,999 | 50,790 | 61,109 | |||||||||
Software | 28,206 | 32,061 | 27,689 | |||||||||
Total | $ | 159,313 | $ | 215,801 | $ | 173,445 | ||||||
Gross margin: | ||||||||||||
Solutions | 29 | % | 38 | % | 32 | % | ||||||
Systems | 16 | % | 38 | % | 40 | % | ||||||
Software | 72 | % | 74 | % | 73 | % | ||||||
Total | 29 | % | 41 | % | 38 | % | ||||||
Income from operations: | ||||||||||||
Solutions | $ | 61,146 | $ | 88,589 | $ | 50,620 | ||||||
Systems | (9,957 | ) | 10,132 | 33,034 | ||||||||
Software | 23,602 | 28,129 | 24,463 | |||||||||
Corporate and other | (58,395 | ) | (52,323 | ) | (41,322 | ) | ||||||
Income from operations | 16,396 | 74,527 | 66,795 | |||||||||
Interest expense, net | (12,344 | ) | (5,265 | ) | (5,784 | ) | ||||||
Equity in earnings (losses) of investments | (42,320 | ) | 297 | (22,862 | ) | |||||||
Other income (expense) | (182,530 | ) | 17,124 | (3,447 | ) | |||||||
Income (loss) before income taxes | $ | (220,798 | ) | $ | 86,683 | $ | 34,702 | |||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Depreciation and amortization (including multi-client data library): | ||||||||||||
Solutions | $ | 99,774 | $ | 98,342 | $ | 84,958 | ||||||
Systems | 2,665 | 4,185 | 3,229 | |||||||||
Software | 699 | 776 | 1,116 | |||||||||
Corporate and other | 1,736 | 1,979 | 1,931 | |||||||||
Total | $ | 104,874 | $ | 105,282 | $ | 91,234 | ||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Total assets: | ||||||||||||
Solutions | $ | 445,581 | $ | 438,663 | ||||||||
Systems | 139,074 | 156,484 | ||||||||||
Software | 45,343 | 45,948 | ||||||||||
Corporate and other | 234,673 | 179,488 | ||||||||||
Total | $ | 864,671 | $ | 820,583 | ||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Total assets by geographic area: | ||||||||||||
North America | $ | 609,739 | $ | 533,035 | ||||||||
Europe | 76,601 | 91,101 | ||||||||||
Middle East | 128,909 | 130,070 | ||||||||||
Latin America | 33,375 | 51,692 | ||||||||||
Other | 16,047 | 14,685 | ||||||||||
Total | $ | 864,671 | $ | 820,583 | ||||||||
Intersegment sales are insignificant for all periods presented. Corporate assets include all assets specifically related to corporate personnel and operations, a majority of cash and cash equivalents, and the investments in INOVA Geophysical and OceanGeo. Depreciation and amortization expense is allocated to segments based upon use of the underlying assets. | ||||||||||||
A summary of net revenues by geographic area follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Europe | $ | 198,977 | $ | 200,589 | $ | 160,230 | ||||||
North America | 150,160 | 164,157 | 155,877 | |||||||||
Middle East | 63,157 | 37,471 | 28,227 | |||||||||
Asia Pacific | 52,672 | 55,028 | 78,777 | |||||||||
Latin America | 54,008 | 46,212 | 12,199 | |||||||||
Africa | 16,474 | 18,469 | 7,926 | |||||||||
Commonwealth of Independent States | 13,719 | 4,391 | 11,385 | |||||||||
Total | $ | 549,167 | $ | 526,317 | $ | 454,621 | ||||||
Net revenues are attributed to geographic areas on the basis of the ultimate destination of the equipment or service, if known, or the geographic area imaging services are provided. If the ultimate destination of such equipment is not known, net revenues are attributed to the geographic area of initial shipment. |
Equity_Method_Investments
Equity Method Investments | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||||||
Equity Method Investments | ' | ||||||||||||||
Equity Method Investments | |||||||||||||||
The following table reflects the change in the Company’s equity method investments and note receivable from equity method investees during the year ended December 31, 2013 (in thousands): | |||||||||||||||
INOVA Geophysical | OceanGeo | Total | |||||||||||||
Investment at December 31, 2012 | $ | 73,925 | $ | — | $ | 73,925 | |||||||||
Investment in equity | — | 1,500 | 1,500 | ||||||||||||
Investment in and advances to OceanGeo | — | 23,255 | 23,255 | ||||||||||||
Equity in losses of investments | (22,487 | ) | (19,833 | ) | (42,320 | ) | |||||||||
Write-down of note receivable from OceanGeo | — | (2,122 | ) | (2,122 | ) | ||||||||||
Equity interest in investees' other comprehensive income (loss) | (373 | ) | — | (373 | ) | ||||||||||
Investments at December 31, 2013 | $ | 51,065 | $ | 2,800 | $ | 53,865 | |||||||||
OceanGeo | |||||||||||||||
In February 2013, the Company purchased from Reservoir Exploration Technology ASA for $1.5 million its 30% interest in OceanGeo. OceanGeo is headquartered in Rio de Janeiro, Brazil, and specializes in seismic acquisition operations using ocean-bottom cables deployed from vessels leased by OceanGeo. The Company was originally granted an option, exercisable at any time on or before May 15, 2013, to increase its ownership percentage to 50%, which, if exercised, would have required the Company to make additional capital contributions to OceanGeo. Additionally, the Company provided OceanGeo with an $8.0 million working capital loan (the “Initial Working Capital Loan”), the repayment of which was guaranteed by the Company’s majority joint venture partner in OceanGeo, Georadar Levantamentos Geofisicos S/A (“Georadar”). The stated maturity date of the loan was May 25, 2013. No repayments were made under the loan, and the full indebtedness under the loan remained outstanding as of December 31, 2013. In addition, in January 2013 the Company sold certain seismic equipment to OceanGeo, and Georadar guaranteed the payment of the equipment purchase price. As of December 31, 2013, OceanGeo owed $7.0 million to the Company for the equipment. | |||||||||||||||
During the third quarter of 2013, OceanGeo’s vessels and crew were idle because it had no contracts for seismic acquisition operations. The Company’s share of losses in OceanGeo for the nine months ended September 30, 2013 was $7.4 million. The Company’s share of losses reduced its equity method investment in OceanGeo to zero, and the Company continued to record its share of additional losses, reducing the carrying value of the Initial Working Capital Loan to $2.1 million at September 30, 2013. At September 30, 2013, the Company also evaluated the realizability of its remaining receivables and the Initial Working Capital Loan and concluded they were fully impaired because OceanGeo had no backlog of contracts for seismic acquisition operations at that time. As a result, the Company recorded a charge through general, administrative and other operating expenses of $9.2 million, resulting in no remaining carrying value of the receivables and the Initial Working Capital Loan at September 30, 2013. | |||||||||||||||
In October 2013, the Company reached agreement with Georadar for the Company to have the option to increase its ownership percentage in OceanGeo to 70%, subject to certain conditions. To further assist OceanGeo in acquiring backlog, in October 2013 the Company also agreed to loan OceanGeo additional funds for working capital, subject to the Company’s agreement on the necessity and purpose for each advance and certain other conditions, up to a maximum of $25.0 million. As of December 31, 2013, the Company had advanced an additional $15.3 million for working capital purposes (the “Additional Working Capital Loans”). | |||||||||||||||
During the fourth quarter of 2013, the Company increased its economic interest in OceanGeo to 70%, but did not acquire its 70% share ownership until January 2014 and therefore did not gain control of OceanGeo as a controlling shareholder until January 2014. However, the Company recorded equity losses of $12.5 million representing 70% of OceanGeo’s total losses for the fourth quarter, reducing the carrying value of the Additional Working Capital Loans to $2.8 million at December 31, 2013. OceanGeo’s vessels and crew remained idle until late December when it commenced seismic acquisition operations in Trinidad related to its recently awarded contract. | |||||||||||||||
During the fourth quarter of 2013, the Company evaluated its agreement to have the option to increase its ownership in OceanGeo from 30% to 70% and concluded this was a reconsideration event under U.S. GAAP. As a result, the Company determined that it had a variable interest through its equity ownership in OceanGeo, but concluded it was not the primary beneficiary because it did not have the power to direct the activities that most significantly impact the variable interest entity’s economic performance. As such, the Company did not consolidate OceanGeo as of December 31, 2013. The Company continued to use the equity method of accounting through December 31, 2013. The Company’s maximum exposure to loss is limited to its investment which is represented by the financial statement carrying amount of its Additional Working Capital Loans of $2.8 million as of December 31, 2013. The Company has no obligation, implicit or explicit, to fund any expenses of OceanGeo. | |||||||||||||||
Subsequent Event | |||||||||||||||
On January 27, 2014, the Company obtained control of OceanGeo when it increased its ownership interest in OceanGeo from 30% to 70%. In connection with the increase in ownership, the Company converted into additional equity interest of OceanGeo all amounts owed to it under the Initial Working Capital Loan and approximately $3.0 million of the $7.0 million owed to the Company for the purchase of equipment by OceanGeo. OceanGeo will be managed through a Supervisory Board consisting of four members appointed by the Company and two members appointed by Georadar. The guarantees from Georadar with regard to the loan and the equipment purchase also terminated. | |||||||||||||||
Because the Company gained control of OceanGeo on January 27, 2014, the Company continued to record its share of OceanGeo’s results using equity method accounting through January 27, 2014, and after that date the Company will consolidate OceanGeo’s financial results and financial position with the Company’s consolidated financial results and financial position. | |||||||||||||||
The following table reflects summarized financial information for OceanGeo, on a 100% basis, as of and for the year ended December 31, 2013 (in thousands): | |||||||||||||||
December 31, 2013 | |||||||||||||||
Current assets | $ | 5,233 | |||||||||||||
Non-current assets | 27,101 | ||||||||||||||
Current liabilities(1) | 55,216 | ||||||||||||||
Non-current liabilities | 198 | ||||||||||||||
Equity | $ | (23,080 | ) | ||||||||||||
-1 | Includes payables to, notes from and advances from ION and Georadar that existed at December 31, 2013, but were converted to equity in January 2014. The payables to and notes from ION that were converted to equity totaled $10.9 million. The payables to and notes from Georadar that were converted to equity totaled $10.0 million. This balance also includes $15.3 million of advances made by ION to OceanGeo during the fourth quarter of 2013. | ||||||||||||||
Period from March 1, to | |||||||||||||||
31-Dec-13 | |||||||||||||||
Total net revenues | $ | 19,668 | |||||||||||||
Gross profit (loss) | $ | (22,918 | ) | ||||||||||||
Income (loss) from operations | $ | (40,443 | ) | ||||||||||||
Net income (loss) | $ | (42,391 | ) | ||||||||||||
INOVA Geophysical | |||||||||||||||
The Company owns a 49% interest in a land seismic equipment business with BGP. BGP is a subsidiary of China National Petroleum Corporation (“CNPC”) and is a leading global geophysical services contracting company. The joint venture company, organized under the laws of the People’s Republic of China, is named INOVA Geophysical Equipment Limited (“INOVA Geophysical”). BGP owns the remaining 51% interest in INOVA Geophysical. INOVA Geophysical is managed through a Board of Directors consisting of four members appointed by BGP and three members appointed by the Company. The Company accounts for its share of earnings in INOVA Geophysical on a one fiscal quarter lag basis. Thus, the Company’s share of INOVA Geophysical’s results for the period from October 1, 2012 to September 30, 2013 (“Fiscal 2013”), is included in the Company’s financial results for its fiscal year ended December 31, 2013, the Company’s share of INOVA Geophysical’s results for the period from October 1, 2011 to September 30, 2012 (“Fiscal 2012”), is included in the Company’s financial results for its fiscal year ended December 31, 2012, and the Company’s share of INOVA Geophysical’s results for the period from October 1, 2010 to September 30, 2011 (“Fiscal 2011”), is included in the Company’s financial results for its fiscal year ended December 31, 2011. | |||||||||||||||
INOVA Geophysical is a variable interest entity because the Company’s voting rights with respect to INOVA Geophysical are not proportionate to its ownership interest and substantially all of INOVA Geophysical’s activities are conducted on behalf of the Company and BGP, a related party to the Company. The Company is not the primary beneficiary of INOVA Geophysical because it does not have the power to direct the activities of INOVA Geophysical that most significantly impact its economic performance. Accordingly, the Company does not consolidate INOVA Geophysical, but instead accounts for INOVA Geophysical using the equity method of accounting. The Company’s maximum exposure to loss is limited to its investment which is represented by the financial statement carrying amount of its equity method investment in INOVA Geophysical of $51.1 million as of December 31, 2013. The Company has no obligation, implicit or explicit, to fund any expenses of INOVA Geophysical. | |||||||||||||||
The following table reflects summarized financial information for INOVA Geophysical, on a 100% basis, as of September 30, 2013 and 2012 and for Fiscal 2013, Fiscal 2012 and Fiscal 2011 (in thousands): | |||||||||||||||
September 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Current assets | $ | 147,475 | $ | 138,401 | |||||||||||
Non-current assets | 71,551 | 101,280 | |||||||||||||
Current liabilities | 110,972 | 78,241 | |||||||||||||
Non-current liabilities | 2,731 | 9,290 | |||||||||||||
Equity | $ | 105,323 | $ | 152,150 | |||||||||||
Fiscal 2013 | Fiscal 2012 | Fiscal 2011 | |||||||||||||
Total net revenues | $ | 183,619 | $ | 188,336 | $ | 138,735 | |||||||||
Gross profit (loss) | $ | (1,988 | ) | (A) | $ | 39,320 | $ | 5,765 | (B) | ||||||
Income (loss) from operations | $ | (44,463 | ) | $ | 3,241 | $ | (41,836 | ) | |||||||
Net income (loss) | $ | (46,149 | ) | (A) | $ | 2,197 | $ | (46,033 | ) | ||||||
(A) | Includes approximately $36.5 million of restructuring and special items associated with the impairment of intangible assets, write-down of excess and obsolete inventory and rental equipment, and severance-related charges. In addition to the restructuring and special items impacting gross profit, net income (loss) was also impacted by $1.8 million of other restructuring and special items. | ||||||||||||||
(B) | Includes approximately $15.7 million of excess and obsolete inventory charges. | ||||||||||||||
The difference between the amount of the Company’s share in INOVA Geophysical’s net income (loss) for Fiscal 2013 and Fiscal 2012 and the “Equity in earnings (losses) of INOVA Geophysical” reflected on the Consolidated Statement of Operations for the years ended December 31, 2013 and 2012 is primarily due to transactions between the Company’s multi-client data library business and INOVA Geophysical, specifically the Company’s rental of land seismic equipment from INOVA Geophysical to acquire seismic data for its new venture projects. | |||||||||||||||
Related Party Transactions | |||||||||||||||
For information regarding transactions between the Company and its equity method investees, see Note 19 “Certain Relationships and Related Party Transactions.” |
Longterm_Debt_and_Lease_Obliga
Long-term Debt and Lease Obligations | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-term Debt and Lease Obligations | ' | ||||||||
Long-term Debt and Lease Obligations | |||||||||
December 31, | |||||||||
Obligations (in thousands) | 2013 | 2012 | |||||||
Senior secured second-priority notes | $ | 175,000 | $ | — | |||||
Revolving line of credit | 35,000 | 97,250 | |||||||
Facility lease obligation | 1,501 | 2,334 | |||||||
Equipment capital leases | 8,651 | 5,744 | |||||||
Total | 220,152 | 105,328 | |||||||
Current portion of long-term debt and lease obligations | (5,906 | ) | (3,496 | ) | |||||
Non-current portion of long-term debt and lease obligations | $ | 214,246 | $ | 101,832 | |||||
Senior Secured Second-Priority Notes | |||||||||
On May 13, 2013, the Company issued and sold $175 million aggregate principal amount of 8.125% Senior Secured Second-Priority Notes due 2018 (“Notes”) in a private offering pursuant to an Indenture dated as of May 13, 2013. The Notes are senior secured second-priority obligations of the Company, are guaranteed by certain of the Company’s U.S. subsidiaries, and mature on May 15, 2018. Interest on the Notes accrues at the rate of 8.125% per annum and will be payable semiannually in arrears on May 15 and November 15, commencing on November 15, 2013. | |||||||||
On or after May 15, 2015, the Company may on one or more occasions redeem all or a part of the Notes at the redemption prices set forth below, plus accrued and unpaid interest and special interest, if any, on the Notes redeemed during the twelve-month period beginning on May 15th of the years indicated below: | |||||||||
Date | Percentage | ||||||||
2015 | 104.063 | % | |||||||
2016 | 102.031 | % | |||||||
2017 and thereafter | 100 | % | |||||||
The Notes are initially jointly and severally guaranteed on a senior secured basis by each of the Company’s current material U.S. subsidiaries: GX Technology Corporation, ION Exploration Products (U.S.A.), Inc. and I/O Marine Systems, Inc. (the “Notes Guarantors”). The Notes and the guarantees are secured, subject to certain exceptions and permitted liens, by second-priority liens on substantially all of the assets that secure the indebtedness under the Company's senior first-priority secured credit facility with China Merchants Bank Co., Ltd., New York Branch (“CMB”) as administrative agent and lender under the facility (which is defined below as the “Credit Facility”; see “– Revolving Line of Credit” below). The indebtedness under the Notes is effectively junior to the Company's obligations under the senior secured credit facility to the extent of the value of the collateral securing the facility, and to any other indebtedness secured on a first-priority basis to the extent of the value of the Company's assets subject to those first-priority security interests. | |||||||||
The Company used the net proceeds from the offering to repay outstanding indebtedness under its senior secured credit facility with CMB and for general corporate purposes. The Notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or applicable state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. | |||||||||
The Notes contain certain covenants that, among other things, limit the Company’s ability and the ability of its restricted subsidiaries to: | |||||||||
• | Make certain investments; pay certain dividends or distributions on the capital stock or other equity interests of the Company or any restricted subsidiary; purchase, redeem or retire capital stock or certain indebtedness or make other types of restricted payments, unless | ||||||||
* | No default under the Indenture has occurred or would occur as a result of such payment or investment, | ||||||||
* | The Company would, after giving pro forma effect to such investment or payment, have been permitted to incur at least $1.00 of additional indebtedness under a Fixed Charge Coverage Ratio test under the Indenture and | ||||||||
* | The aggregate cumulative amount of all such payments or investments would not exceed a sum calculated by reference to, among other items, the Company's consolidated net income, proceeds from certain sales of equity or assets, certain conversions or exchanges of debt for equity and certain other reductions in indebtedness; | ||||||||
• | Incur additional indebtedness or issue certain preferred stock, unless the Fixed Charge Coverage Ratio for the four most recently completed fiscal quarters immediately prior to such incurrence or issuance would have been 2.0 to 1.0, as determined on a pro forma basis as if the debt had been incurred or the stock issued at the beginning of such four-quarter period; | ||||||||
• | Create, incur or assume any lien, except certain permitted liens; | ||||||||
• | Restrict or encumber the ability of any restricted subsidiary to (i) pay dividends on or make any other distributions with respect to its equity interests, (ii) pay indebtedness owed to the Company or any restricted subsidiary, (iii) make loans or advances to the Company or any of its restricted subsidiaries or (iv) sell, lease or transfer properties or assets to the Company or any restricted subsidiary; | ||||||||
• | Carry out certain mergers or consolidations with another entity, or sell, assign or lease all or substantially all of the properties or assets of the Company and its Restricted Subsidiaries, taken as a whole, unless | ||||||||
* | No default under the Indenture has occurred or would occur as a result of such merger or sale, and | ||||||||
* | The Fixed Charge Coverage Ratio of the Company or its successor for the four most recently completed fiscal quarters immediately prior to such merger or sale would have been 2.0 to 1.0, as determined on a pro forma basis as if the merger or sale and any related financing transactions had occurred at the beginning of such four-quarter period, which would permit the Company or its successor to incur additional indebtedness under the Indenture; | ||||||||
• | Create unrestricted subsidiaries; or | ||||||||
• | Enter into certain transactions with affiliates of the Company. | ||||||||
These and other restrictive covenants contained in the Indenture are subject to important exceptions and qualifications. All of the Company's subsidiaries are currently restricted subsidiaries. | |||||||||
As of December 31, 2013, the Company was in compliance with these covenants. | |||||||||
In connection with the offering of the Notes, the Company entered into a consent agreement with CMB as administrative agent and lender under the Company’s senior secured credit facility. See “— Revolving Line of Credit” below. | |||||||||
In connection with the issuance of the Notes, the Company and the Notes Guarantors entered into a second lien intercreditor agreement dated as of May 13, 2013 (the “Intercreditor Agreement”) with, among others, CMB, as administrative agent, first lien representative for the first lien secured parties and collateral agent for the first lien secured parties, the trustee under the Indenture and the collateral agent for the second lien secured parties. The Intercreditor Agreement provides, among other things, that the liens on the collateral securing the Notes and related obligations will be junior and subordinate in all respects to the liens on the collateral securing the Company's senior secured credit facility and related obligations. | |||||||||
Revolving Line of Credit | |||||||||
On May 29, 2012, the Company amended the terms of its senior secured credit facility (the “Credit Facility”) with CMB. The First Amendment to Credit Agreement and Loan Documents (the “First Amendment”) modified certain provisions of the Company’s senior credit agreement with CMB that it had entered into on March 25, 2010. The maturity date of any outstanding debt under the Credit Facility is March 24, 2015. | |||||||||
As amended by the First Amendment, the Credit Facility provides that the Company may make revolving credit borrowings in U.S. Dollars, Euros, British Pounds Sterling or Canadian Dollars up to an amount not to exceed the U.S. Dollar equivalent of $175.0 million. The Company also agreed that no additional borrowings may be made at any time at which the outstanding indebtedness under the revolving line of credit (principal, accrued interest and fees) exceeds the U.S. Dollar equivalent of $175.0 million. In addition, all then-outstanding term loan indebtedness under the Credit Facility was converted to revolving credit indebtedness, such that as of May 29, 2012, there was $98.3 million in total revolving credit indebtedness outstanding under the Credit Facility. The First Amendment eliminated sub-facility limits under the Credit Facility. | |||||||||
The Company’s obligations under the Credit Facility continue to be guaranteed by certain of its material U.S. subsidiaries that remain as parties to the Credit Facility. INOVA Geophysical continues to provide a bank stand-by letter of credit as credit support for the Company’s obligations under the Credit Agreement. In addition, BGP has issued a comfort letter on behalf of the INOVA stand-by letter of credit. | |||||||||
As amended by the First Amendment, the interest rates per annum on borrowings under the Credit Facility are at the Company’s option: | |||||||||
• | An alternate base rate equal to the sum of (i) the greatest of (a) the prime rate of CMB, (b) a federal funds effective rate plus 0.50%, or (c) an adjusted LIBOR-based rate plus 1.0% and (ii) an applicable interest margin of 1.4% (reduced from 2.5%); or | ||||||||
• | For eurodollar borrowings and borrowings in Euros, Pounds Sterling or Canadian Dollars, the sum of (i) an adjusted LIBOR-based rate, and (ii) an applicable interest margin of 2.4% (reduced from 3.5%). | ||||||||
As of December 31, 2013, the $35.0 million in outstanding revolving loan indebtedness under the Credit Facility accrued interest at a rate of 2.57% per annum. | |||||||||
The Credit Facility requires compliance with certain financial covenants, including the following: | |||||||||
• | Maintain a minimum fixed charge coverage ratio, as defined, in an amount equal to at least 1.125 to 1; | ||||||||
• | Not exceed a maximum leverage ratio, as defined, of 3.25 to 1; and | ||||||||
• | Maintain a minimum tangible net worth of at least 60% of ION’s tangible net worth as of March 31, 2010, as defined. | ||||||||
As of December 31, 2013, the Company was in compliance with these financial covenants and the Company expects to remain in compliance with these financial covenants for at least the next 12 months. | |||||||||
Facility Lease Obligation | |||||||||
In 2001, the Company sold certain facilities it owned in Stafford, Texas. Simultaneously with the sale, the Company entered into a non-cancelable twelve-year lease with the purchaser of the property. Because the Company retained a continuing involvement in the property that precluded sale-leaseback treatment for financial accounting purposes, the sale-leaseback transaction was accounted for as a financing transaction. | |||||||||
In June 2005, the owner sold the facilities to two parties, which were unrelated to each other as well as unrelated to the seller. In conjunction with the sale of the facilities, the Company entered into two separate lease arrangements for each of the facilities with the new owners. One lease, which was classified as an operating lease, has a twelve-year lease term. The second lease continues to be accounted for as a financing transaction due to the Company’s continuing involvement in the property as a lessee under a ten-year lease term. The Company recorded the commitment under the second lease as a $5.5 million lease obligation at an implicit rate of 11.7% per annum, of which $1.5 million was outstanding at December 31, 2013. Both leases have renewal options allowing the Company to extend the leases for up to an additional twenty-year term, which the Company does not expect to renew. | |||||||||
Equipment Capital Leases | |||||||||
The Company has entered into capital leases that are due in installments for the purpose of financing the purchase of computer equipment through 2016. Interest accrues under these leases at rates of up to 6.0% per annum, and the leases are collateralized by liens on the computer equipment. The assets are amortized over the lesser of their related lease terms or their estimated productive lives and such charges are reflected within depreciation expense. | |||||||||
A summary of future principal obligations under long-term debt and equipment capital lease obligations is as follows (in thousands): | |||||||||
Years Ended December 31, | Long-Term Debt | Capital Lease Obligations | |||||||
2014 | $ | 966 | $ | 4,940 | |||||
2015 | 35,535 | 2,923 | |||||||
2016 | — | 788 | |||||||
2017 | — | — | |||||||
2018 | 175,000 | — | |||||||
Total | $ | 211,501 | $ | 8,651 | |||||
Net_Income_Loss_per_Common_Sha
Net Income (Loss) per Common Share | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Net Income (Loss) per Common Share | ' | |||||||||||
Net Income (Loss) per Common Share | ||||||||||||
Basic net income (loss) per common share is computed by dividing net income (loss) applicable to common shares by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is determined based on the assumption that dilutive restricted stock and restricted stock unit awards have vested and outstanding dilutive stock options have been exercised and the aggregate proceeds were used to reacquire common stock using the average price of such common stock for the period. The total number of shares issuable under anti-dilutive options at December 31, 2013, 2012 and 2011 were 6,828,727, 4,864,553 and 2,974,886, respectively. | ||||||||||||
Prior to September 30, 2013, there were 27,000 shares outstanding of the Company’s Series D Cumulative Convertible Preferred Stock (“Series D Preferred Stock”). On September 30, 2013, the holder of all of the outstanding shares of Series D Preferred Stock converted those shares into 6,065,075 shares of common stock. See further discussion of the Series D Preferred Stock conversion provisions at Note 8 “Cumulative Convertible Preferred Stock.” The effects of the outstanding shares of all Series D Preferred Stock were anti-dilutive for the years ended December 31, 2013 and 2012. | ||||||||||||
The following table summarizes the computation of basic and diluted net income (loss) per common share (in thousands, except per share amounts): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net income (loss) applicable to common shares | $ | (251,874 | ) | $ | 61,963 | $ | 23,422 | |||||
Income impact of assumed Series D Preferred Stock conversion | — | 1,352 | — | |||||||||
Net income after assumed Series D Preferred Stock conversion | $ | (251,874 | ) | $ | 63,315 | $ | 23,422 | |||||
Weighted average number of common shares outstanding | 158,506 | 155,801 | 154,811 | |||||||||
Effect of dilutive stock awards | — | 899 | 1,279 | |||||||||
Effect of Series D Preferred Stock | — | 6,065 | — | |||||||||
Weighted average number of diluted common shares outstanding | 158,506 | 162,765 | 156,090 | |||||||||
Basic net income (loss) per share | $ | (1.59 | ) | $ | 0.4 | $ | 0.15 | |||||
Diluted net income (loss) per share | $ | (1.59 | ) | $ | 0.39 | $ | 0.15 | |||||
Details_of_Selected_Balance_Sh
Details of Selected Balance Sheet Accounts | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||
Details of Selected Balance Sheet Accounts | ' | |||||||||||
Details of Selected Balance Sheet Accounts | ||||||||||||
Accounts Receivable | ||||||||||||
A summary of accounts receivable is as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Accounts receivable, principally trade | $ | 156,670 | $ | 133,847 | ||||||||
Less allowance for doubtful accounts | (7,222 | ) | (6,711 | ) | ||||||||
Accounts receivable, net | $ | 149,448 | $ | 127,136 | ||||||||
Inventories | ||||||||||||
A summary of inventories is as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Raw materials and purchased subassemblies | $ | 54,168 | $ | 49,421 | ||||||||
Work-in-process | 2,297 | 8,613 | ||||||||||
Finished goods | 33,263 | 26,880 | ||||||||||
Reserve for excess and obsolete inventories | (32,555 | ) | (14,239 | ) | ||||||||
Total | $ | 57,173 | $ | 70,675 | ||||||||
The Company provides for estimated obsolescence or excess inventory in amounts equal to the difference between the cost of inventory and market based upon assumptions about future demand for the Company’s products and market conditions. For 2013, the Company increased its reserve for excess and obsolete inventories by $18.2 million related to write-downs of inventory resulting from the restructuring of its Systems segment. In addition, the Company wrote off $1.1 million of inventory through scrap expense and wrote down $1.9 million of inventory to a lower of cost or market value basis as a result of the restructuring. For additional information related to the Company’s restructuring charges, see Note 17 “Restructuring Activities.” | ||||||||||||
For 2012 and 2011, the Company recorded inventory obsolescence and excess inventory charges of approximately $1.3 million and $0.6 million, respectively. | ||||||||||||
Property, Plant, Equipment and Seismic Rental Equipment | ||||||||||||
A summary of property, plant, equipment and seismic rental equipment is as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Buildings | $ | 23,292 | $ | 15,126 | ||||||||
Machinery and equipment | 97,242 | 87,127 | ||||||||||
Seismic rental equipment | 8,649 | 10,895 | ||||||||||
Furniture and fixtures | 4,673 | 3,403 | ||||||||||
Other | 3,577 | 3,857 | ||||||||||
Total | 137,433 | 120,408 | ||||||||||
Less accumulated depreciation | (90,749 | ) | (86,636 | ) | ||||||||
Property, plant, equipment and seismic rental equipment, net | $ | 46,684 | $ | 33,772 | ||||||||
Total depreciation expense, including amortization of assets recorded under capital leases, for 2013, 2012 and 2011 was $14.8 million, $12.5 million and $9.4 million, respectively. In 2012, the Company wrote down $5.9 million of marine seismic equipment it had leased to a marine seismic contractor. This write-down was reflected in general, administrative and other operating expenses. | ||||||||||||
Intangible Assets | ||||||||||||
A summary of intangible assets, net, is as follows (in thousands): | ||||||||||||
31-Dec-13 | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Amount | Amortization | |||||||||||
Customer relationships | $ | 42,593 | $ | (31,880 | ) | $ | 10,713 | |||||
Intellectual property rights | 4,300 | (3,766 | ) | 534 | ||||||||
Total | $ | 46,893 | $ | (35,646 | ) | $ | 11,247 | |||||
31-Dec-12 | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Amount | Amortization | |||||||||||
Customer relationships | $ | 42,397 | $ | (28,909 | ) | $ | 13,488 | |||||
Intellectual property rights | 4,300 | (2,947 | ) | 1,353 | ||||||||
Total | $ | 46,697 | $ | (31,856 | ) | $ | 14,841 | |||||
Total amortization expense for intangible assets for 2013, 2012 and 2011 was $3.8 million, $3.9 million and $4.5 million, respectively. A summary of the estimated amortization expense for the next five years is as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | $ | 2,723 | ||||||||||
2015 | $ | 2,411 | ||||||||||
2016 | $ | 1,962 | ||||||||||
2017 | $ | 1,670 | ||||||||||
2018 | $ | 1,435 | ||||||||||
Accrued Expenses | ||||||||||||
A summary of accrued expenses is as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Accrued multi-client data library acquisition costs | $ | 25,140 | $ | 47,678 | ||||||||
Compensation, including compensation-related taxes and commissions | 29,727 | 28,993 | ||||||||||
Deferred income tax liability | 11,967 | 20,556 | ||||||||||
Accrued legal contingency (A) | — | 10,000 | ||||||||||
Income tax payable | 5,845 | 8,348 | ||||||||||
Other | 11,679 | 8,520 | ||||||||||
Total | $ | 84,358 | $ | 124,095 | ||||||||
(A) | At December 31, 2012, the Company had an accrual for loss contingency related to legal proceedings of $10.0 million. During 2013, this amount was reclassified into other long-term liabilities. | |||||||||||
Other Long-term Liabilities | ||||||||||||
A summary of other long-term liabilities is as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Accrual for loss contingency related to legal proceedings (Note 16) | $ | 193,327 | $ | — | ||||||||
Facility restructuring accrual | 4,837 | 5,642 | ||||||||||
Other | 12,438 | 2,489 | ||||||||||
Total | $ | 210,602 | $ | 8,131 | ||||||||
Goodwill
Goodwill | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Goodwill | ' | |||||||||||||||
Goodwill | ||||||||||||||||
On December 31, 2013 and 2012, the Company completed the annual reviews of the carrying value of goodwill in its Solutions, Software and Marine Systems reporting units and noted no impairments. The 2013 quantitative assessment indicated that the fair values of its Solutions and Software reporting units significantly exceeded their carrying values. However, if the estimates or related projections associated with the reporting units significantly change in the future, the Company may be required to record impairment charges. | ||||||||||||||||
For goodwill testing purposes, the $193.3 million litigation contingency accrual is assigned to the Marine Systems reporting unit. Based on the increase in this accrual and the recording of a valuation allowance on substantially all of the Company’s net deferred tax assets in the third quarter of 2013, this reporting unit’s carrying value was negative as of December 31, 2013. Based on the Company’s evaluation of qualitative factors relevant to the Marine Systems reporting unit, the second step of the impairment test was performed to measure the amount of any potential impairment by comparing the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. The excess of the fair value of a reporting unit over the amounts assigned to its assets and liabilities in a hypothetical purchase price allocation is the implied fair value of goodwill. The Company completed the step two impairment test, which did not indicate an impairment of goodwill associated with the Marine Systems reporting unit. | ||||||||||||||||
The following is a summary of the changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 (in thousands): | ||||||||||||||||
Solutions | Software | Marine Systems | Total | |||||||||||||
Balance at January 1, 2012 | $ | 2,701 | $ | 24,278 | $ | 26,984 | $ | 53,963 | ||||||||
Purchase price adjustment | 242 | — | — | 242 | ||||||||||||
Impact of foreign currency translation adjustments | — | 1,144 | — | 1,144 | ||||||||||||
Balance at December 31, 2012 | 2,943 | 25,422 | 26,984 | 55,349 | ||||||||||||
Impact of foreign currency translation adjustments | — | 527 | — | 527 | ||||||||||||
Balance at December 31, 2013 | $ | 2,943 | $ | 25,949 | $ | 26,984 | $ | 55,876 | ||||||||
Cumulative_Convertible_Preferr
Cumulative Convertible Preferred Stock | 12 Months Ended |
Dec. 31, 2013 | |
Equity [Abstract] | ' |
Cumulative Convertible Preferred Stock | ' |
Cumulative Convertible Preferred Stock | |
During 2005, the Company entered into an Agreement with Fletcher International, Ltd. (this Agreement, as amended, is referred to as the “Fletcher Agreement”) and issued to Fletcher 30,000 shares of Series D-1 Cumulative Convertible Preferred Stock (“Series D-1 Preferred Stock”) in a privately-negotiated transaction, receiving $29.8 million in net proceeds. The Fletcher Agreement also provided to Fletcher an option to purchase up to an additional 40,000 shares of additional series of preferred stock from time to time, with each series having a conversion price that would be equal to 122% of an average daily volume-weighted market price of the Company’s common stock over a trailing period of days at the time of issuance of that series. In 2007 and 2008, Fletcher exercised this option and purchased 5,000 shares of Series D-2 Cumulative Convertible Preferred Stock (“Series D-2 Preferred Stock”) for $5.0 million (in December 2007) and the remaining 35,000 shares of Series D-3 Cumulative Convertible Preferred Stock (“Series D-3 Preferred Stock”) for $35.0 million (in February 2008). The shares of Series D-1 Preferred Stock, Series D-2 Preferred Stock and Series D-3 Preferred Stock are sometimes referred to herein as the “Series D Preferred Stock.” | |
Dividends on the shares of Series D Preferred Stock were required to be paid in cash on a quarterly basis. Dividends were payable at a rate equal to the greater of (i) 5.0% per annum or (ii) the three month LIBOR rate on the last day of the immediately preceding calendar quarter plus 2.5% per annum. Commencing in November 2008, the conversion price for the Series D Preferred Stock was $4.4517 per share, and Fletcher had no right to redeem the Series D Preferred Stock. In addition, commencing in January 2011, under the Fletcher Agreement the aggregate number of shares of common stock issued or issuable to Fletcher upon conversion or redemption of, or as dividends paid on, the Series D Preferred Stock could not exceed 15,724,306 shares. | |
On April 8, 2010, Fletcher converted 8,000 of its shares of the outstanding Series D-1 Preferred Stock and all of the outstanding 35,000 shares of the Series D-3 Preferred Stock into a total of 9,659,231 shares of the Company’s common stock. Until June 2012, Fletcher owned 22,000 shares of the Series D-1 Preferred Stock and 5,000 shares of the Series D-2 Preferred Stock, which were convertible into 6,065,075 shares of the Company’s common stock. In June 2012, Fletcher filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York. All of the shares of Series D Preferred Stock, which had been pledged by Fletcher to secure certain indebtedness, were sold by the pledgee to an affiliate of D.E. Shaw & Co., Inc. in June 2012. | |
On September 30, 2013, the affiliate of D. E. Shaw & Co., Inc., as holder of all of the shares of Series D Preferred Stock of the Company remaining outstanding, converted all of the shares into a total of 6,065,075 shares of the Company’s common stock. Concurrently with the holder’s conversion of its shares of Series D Preferred Stock, the Company paid the holder a cash payment of approximately $5.0 million, representing the estimated present value of certain future dividends in respect of the Series D Preferred Stock. The cash payment made in connection with the conversion of preferred stock reduced the net income (loss) applicable to common shares. As a result of the conversion, all outstanding shares of Series D Preferred Stock were converted into shares of the Company’s common stock and no shares of Series D Preferred Stock remain outstanding. |
Stockholders_Equity_and_StockB
Stockholder's Equity and Stock-Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Stockholders' Equity and Stock-Based Compensation | ' | ||||||||||||||||
Stockholders' Equity and Stock-based Compensation | |||||||||||||||||
Stock Option Plans | |||||||||||||||||
The Company has adopted stock option plans for eligible employees, directors and consultants, which provide for the granting of options to purchase shares of common stock. As of December 31, 2013, there were 8,258,500 outstanding options under the Company’s stock option plans, and 5,021,453 shares available for future grant and issuance. | |||||||||||||||||
The options under these plans generally vest in equal annual installments over a four-year period and have a term of ten years. These options are typically granted with an exercise price per share equal to or greater than the current market price and, upon exercise, are issued from the Company’s unissued common shares. In August 2006, the Compensation Committee of the Board of Directors of the Company approved fixed pre-established quarterly grant dates for all future grants of options. | |||||||||||||||||
Transactions under the stock option plans are summarized as follows: | |||||||||||||||||
Option Price | Outstanding | Vested | Available | ||||||||||||||
per Share | for Grant | ||||||||||||||||
1-Jan-11 | 2.49-16.39 | 7,721,792 | 5,389,408 | 1,648,700 | |||||||||||||
Increase in shares authorized | — | — | — | 5,000,000 | |||||||||||||
Granted | 5.81-10.09 | 1,559,400 | — | (1,559,400 | ) | ||||||||||||
Vested | — | — | 851,222 | — | |||||||||||||
Exercised | 2.49-11.51 | (2,145,792 | ) | (2,145,792 | ) | — | |||||||||||
Cancelled/forfeited | 3.00-15.43 | (344,100 | ) | (250,300 | ) | 262,513 | |||||||||||
Restricted stock granted out of option plans | — | — | — | (651,661 | ) | ||||||||||||
Restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans | — | — | — | 93,488 | |||||||||||||
December 31, 2011 | 2.49-16.39 | 6,791,300 | 3,844,538 | 4,793,640 | |||||||||||||
Granted | 5.96-7.16 | 1,544,000 | — | (1,544,000 | ) | ||||||||||||
Vested | — | — | 1,060,275 | — | |||||||||||||
Exercised | 2.49-7.76 | (194,410 | ) | (194,410 | ) | — | |||||||||||
Cancelled/forfeited | 2.49-15.43 | (212,540 | ) | (119,165 | ) | 127,125 | |||||||||||
Restricted stock granted out of option plans | — | — | — | (667,000 | ) | ||||||||||||
Restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans | — | — | — | 229,163 | |||||||||||||
December 31, 2012 | $2.80-$16.39 | 7,928,350 | 4,591,238 | 2,938,928 | |||||||||||||
Increase in shares authorized | — | — | — | 3,730,000 | |||||||||||||
Plan Expiration | — | — | — | (79,250 | ) | ||||||||||||
Granted | 3.86-6.64 | 1,788,300 | — | (1,788,300 | ) | ||||||||||||
Vested | — | — | 1,055,412 | — | |||||||||||||
Exercised | 2.80-5.81 | (707,575 | ) | (707,575 | ) | — | |||||||||||
Cancelled/forfeited | 3.00-15.43 | (750,575 | ) | (353,600 | ) | 702,325 | |||||||||||
Restricted stock granted out of option plans | — | — | — | (714,950 | ) | ||||||||||||
Restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans | — | — | — | 232,700 | |||||||||||||
December 31, 2013 | $2.83-$16.39 | 8,258,500 | 4,585,475 | 5,021,453 | |||||||||||||
Stock options outstanding at December 31, 2013 are summarized as follows: | |||||||||||||||||
Option Price per Share | Outstanding | Weighted Average Exercise Price of Outstanding Options | Weighted Average Remaining Contract Life | Vested | Weighted Average Exercise Price of Vested Options | ||||||||||||
$2.83 - $4.58 | 2,248,475 | $ | 3.69 | 8.4 years | 681,175 | $ | 3.27 | ||||||||||
$4.79 - $7.19 | 4,191,075 | $ | 6.26 | 7.6 years | 2,097,850 | $ | 6.34 | ||||||||||
$7.31 - $13.29 | 993,500 | $ | 9.32 | 2.3 years | 981,000 | $ | 9.31 | ||||||||||
$14.03 - $16.39 | 825,450 | $ | 15.26 | 4.1 years | 825,450 | $ | 15.26 | ||||||||||
Totals | 8,258,500 | $ | 6.83 | 6.8 years | 4,585,475 | $ | 8.12 | ||||||||||
Additional information related to the Company’s stock options is as follows: | |||||||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Grant Date Fair Value | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value (000’s) | |||||||||||||
Total outstanding at January 1, 2013 | 7,928,350 | $ | 7.19 | 6.9 years | |||||||||||||
Options granted | 1,788,300 | $ | 4.22 | $ | 2.52 | ||||||||||||
Options exercised | (707,575 | ) | $ | 3.57 | |||||||||||||
Options cancelled | (422,850 | ) | $ | 5.98 | |||||||||||||
Options forfeited | (327,725 | ) | $ | 9.54 | |||||||||||||
Total outstanding at December 31, 2013 | 8,258,500 | $ | 6.83 | 6.8 years | $ | 171 | |||||||||||
Options exercisable and vested at December 31, 2013 | 4,585,475 | $ | 8.12 | 5.1 years | $ | 171 | |||||||||||
The total intrinsic value of options exercised during 2013, 2012 and 2011 was $2.0 million, $0.6 million and $13.3 million, respectively. Cash received from option exercises under all share-based payment arrangements for 2013, 2012 and 2011 was $2.5 million, $0.8 million and $13.1 million, respectively. The weighted average grant date fair value for stock option awards granted during 2013, 2012 and 2011 was $2.52, $3.54 and $4.00 per share, respectively. | |||||||||||||||||
Restricted Stock and Restricted Stock Unit Plans | |||||||||||||||||
The Company has issued restricted stock and restricted stock units under the Company’s 2013 Long-Term Incentive Plan and other applicable plans. Restricted stock units are awards that obligate the Company to issue a specific number of shares of common stock in the future if continued service vesting requirements are met. Non-forfeitable ownership of the common stock will vest over a period as determined by the Company in its sole discretion, generally in equal annual installments over a three-year period. Shares of restricted stock awarded may not be sold, assigned, transferred, pledged or otherwise encumbered by the grantee during the vesting period. | |||||||||||||||||
The status of the Company’s restricted stock and restricted stock unit awards for 2013 is as follows: | |||||||||||||||||
Number of | |||||||||||||||||
Shares/Units | |||||||||||||||||
Total nonvested at January 1, 2013 | 1,033,447 | ||||||||||||||||
Granted | 714,950 | ||||||||||||||||
Vested | (578,369 | ) | |||||||||||||||
Forfeited | (117,620 | ) | |||||||||||||||
Total nonvested at December 31, 2013 | 1,052,408 | ||||||||||||||||
At December 31, 2013, the intrinsic value of restricted stock and restricted stock unit awards was approximately $3.5 million. The weighted average grant date fair value for restricted stock and restricted stock unit awards granted during 2013, 2012 and 2011 was $4.08, $6.05 and $6.34 per share, respectively. The total fair value of shares vested during 2013, 2012 and 2011 was $2.4 million, $4.6 million and $3.3 million, respectively. | |||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
In June 2010, the Company adopted an Employee Stock Purchase Plan (“ESPP”) to replace the prior ESPP, which terminated on December 31, 2008. The ESPP allows all eligible employees to authorize payroll deductions at a rate of 1% to 10% of base compensation (or a fixed amount per pay period) for the purchase of the Company’s common stock. Each participant is limited to purchase no more than 500 shares per offering period or 1,000 shares annually. Additionally, no participant may purchase shares in any calendar year that exceeds $10,000 in fair market value based on the fair market value of the stock on the offering commencement date. The purchase price of the common stock is the lesser of 85% of the closing price on the first day of the applicable offering period (or most recently preceding trading day) or 85% of the closing price on the last day of the offering period (or most recently preceding trading day). Each offering period is six months and commences on February 1 and August 1 of each year. The ESPP is considered a compensatory plan under ASC 718, and the Company recorded compensation expense of approximately $0.2 million and $0.3 million and $0.3 million during 2013, 2012 and 2011, respectively. The expense represents the estimated fair value of the look-back purchase option. The fair value was determined using the Black-Scholes option pricing model and was recognized over the purchase period. The total number of shares of common stock authorized and available for issuance under ESPP is 1,120,452. The maximum number of shares of common stock that may be purchased for each offering period is 100,000 (200,000 annually). | |||||||||||||||||
Stock Appreciation Rights Plan | |||||||||||||||||
The Company has adopted a stock appreciation rights plan which provides for the award of stock appreciation rights (“SARs”) to directors and selected key employees and consultants. The awards under this plan are subject to the terms and conditions set forth in agreements between the Company and the holders. The exercise price per SAR is not to be less than one hundred percent of the fair market value of a share of common stock on the date of grant of the SAR. The term of each SAR shall not exceed ten years from the grant date. Upon exercise of a SAR, the holder shall receive a cash payment in an amount equal to the spread specified in the SAR agreement for which the SAR is being exercised. In no event will any shares of common stock be issued, transferred or otherwise distributed under the plan. | |||||||||||||||||
As of December 31, 2013, the Company had outstanding 140,000 SAR awards to one individual with an exercise price of $3.00. The Company recorded less than $0.1 million, less than $0.1 million and $0.3 million, respectively, of share-based compensation expense during 2013, 2012 and 2011 related to employee stock appreciation rights. Pursuant to ASC 718, the stock appreciation rights are considered liability awards and as such, these amounts are accrued in the liability section of the balance sheet. | |||||||||||||||||
Valuation Assumptions | |||||||||||||||||
The Company calculated the fair value of each stock option on the date of grant using the Black-Scholes option pricing model. The following assumptions were used for each respective period: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Risk-free interest rates | 0.9% – 1.8% | 0.7% – 1.0% | 1.1% – 1.9% | ||||||||||||||
Expected lives (in years) | 5.5 | 5.5 | 5.5 | ||||||||||||||
Expected dividend yield | — | % | — | % | — | % | |||||||||||
Expected volatility | 62.1% – 70.6% | 67.8% – 72.2% | 65.9% – 80.2% | ||||||||||||||
The computation of expected volatility during 2013, 2012 and 2011 was based on an equally weighted combination of historical volatility and market-based implied volatility. Historical volatility was calculated from historical data for a period of time approximately equal to the expected term of the option award, starting from the date of grant. Market-based implied volatility was derived from traded options on the Company’s common stock having a term of six months. The Company’s computation of expected life in 2013, 2012 and 2011 was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. The risk-free interest rate assumption is based upon the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. | |||||||||||||||||
Stock-based Compensation Expense | |||||||||||||||||
The following table summarizes stock-based compensation expense for the years ended December 31, 2013, 2012 and 2011 as follows (in thousands): | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Stock-based compensation expense | $ | 7,476 | $ | 6,598 | $ | 6,344 | |||||||||||
Tax benefit related thereto | (2,469 | ) | (2,056 | ) | (1,976 | ) | |||||||||||
Stock-based compensation expense, net of tax | $ | 5,007 | $ | 4,542 | $ | 4,368 | |||||||||||
Other_Income_Expense
Other Income (Expense) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Other Income and Expenses [Abstract] | ' | ||||||||||||
Other Income (Expense) | ' | ||||||||||||
Other Income (Expense) | |||||||||||||
A summary of other income (expense) is as follows (in thousands): | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Accrual for loss contingency related to legal proceedings (Note 16) | $ | (183,327 | ) | $ | (10,000 | ) | $ | — | |||||
Gain on sale of a cost method investment | 3,591 | — | — | ||||||||||
Gain on legal settlements (Note 16) | — | 30,895 | — | ||||||||||
Other income (expense) | (2,794 | ) | (3,771 | ) | (3,447 | ) | |||||||
Total other income (expense) | $ | (182,530 | ) | $ | 17,124 | $ | (3,447 | ) | |||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
The sources of income (loss) before income taxes are as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Domestic | $ | (221,185 | ) | $ | 34,633 | $ | 12,674 | |||||
Foreign | 387 | 52,050 | 22,028 | |||||||||
Total | $ | (220,798 | ) | $ | 86,683 | $ | 34,702 | |||||
Components of income taxes are as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current: | ||||||||||||
Federal | $ | 4,113 | $ | 873 | $ | 6,594 | ||||||
State and local | 485 | 192 | 493 | |||||||||
Foreign | 16,278 | 19,106 | 11,180 | |||||||||
Deferred: | ||||||||||||
Federal | 4,012 | 3,822 | (4,893 | ) | ||||||||
Foreign | 832 | (136 | ) | (3,238 | ) | |||||||
Total income tax expense | $ | 25,720 | $ | 23,857 | $ | 10,136 | ||||||
A reconciliation of the expected income tax expense on income (loss) before income taxes using the statutory federal income tax rate of 35% for 2013, 2012 and 2011 to income tax expense is as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Expected income tax expense (benefit) at 35% | $ | (77,279 | ) | $ | 30,339 | $ | 12,146 | |||||
Foreign tax rate differential | (2,348 | ) | (5,404 | ) | (7,858 | ) | ||||||
Foreign tax differences | 16,808 | 4,897 | (2,511 | ) | ||||||||
State and local taxes | 485 | 192 | 493 | |||||||||
Nondeductible expenses | (58 | ) | 47 | 1,091 | ||||||||
Valuation allowance: | ||||||||||||
Valuation allowance on equity in losses of INOVA Geophysical | 7,871 | (104 | ) | 8,002 | ||||||||
Valuation allowance on operations | 80,241 | (6,110 | ) | (1,227 | ) | |||||||
Total income tax expense | $ | 25,720 | $ | 23,857 | $ | 10,136 | ||||||
The tax effects of the cumulative temporary differences resulting in the net deferred income tax asset (liability) are as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Current deferred: | ||||||||||||
Deferred income tax assets: | ||||||||||||
Accrued expenses | $ | 5,898 | $ | 11,417 | ||||||||
Allowance accounts | 6,282 | 5,359 | ||||||||||
Total current deferred income tax asset | 12,180 | 16,776 | ||||||||||
Valuation allowance | (10,535 | ) | (10,454 | ) | ||||||||
Net current deferred income tax asset | 1,645 | 6,322 | ||||||||||
Deferred income tax liabilities: | ||||||||||||
Unbilled receivables | (13,516 | ) | (26,863 | ) | ||||||||
Total net current deferred income tax liability | $ | (11,871 | ) | $ | (20,541 | ) | ||||||
Non-current deferred: | ||||||||||||
Deferred income tax assets: | ||||||||||||
Net operating loss carryforward | $ | 9,043 | $ | 7,227 | ||||||||
Capital loss carryforward | 19,657 | 19,919 | ||||||||||
Equity method investment | 41,176 | 33,305 | ||||||||||
Cost method investments | — | 4,037 | ||||||||||
Basis in identified intangibles | 9,950 | 4,852 | ||||||||||
Basis in research and development | 3,733 | 3,196 | ||||||||||
Contingency accrual | 67,664 | — | ||||||||||
Tax credit carryforwards and other | 8,893 | 10,387 | ||||||||||
Total non-current deferred income tax asset | 160,116 | 82,923 | ||||||||||
Valuation allowance | (140,500 | ) | (52,807 | ) | ||||||||
Net non-current deferred income tax asset | 19,616 | 30,116 | ||||||||||
Deferred income tax liabilities: | ||||||||||||
Basis in property, plant and equipment | (5,457 | ) | (2,387 | ) | ||||||||
Total net non-current deferred income tax asset | $ | 14,159 | $ | 27,729 | ||||||||
As of December 31, 2012 the Company had recorded a valuation allowance for items that relate to capital losses or basis differences that would create capital losses. During 2013 the Company established a valuation allowance on the substantial majority of U.S. net deferred tax assets due to the significant charges taken during the year and the related inability to rely on projections of future income. As of December 31, 2013, the Company has a net U.S. deferred tax asset of approximately $3.7 million. The Company has determined that this net deferred tax asset is more likely than not to be realized through the expected reversal of existing temporary differences and the ability to offset the related deductions against taxable income in open carryback years. The valuation allowance was calculated in accordance with the provisions of ASC 740-10, “Accounting for Income Taxes,” which requires that a valuation allowance be established or maintained when it is “more likely than not” that all or a portion of deferred tax assets will not be realized. The Company will continue to record a valuation allowance for the substantial majority of its deferred tax assets until there is sufficient evidence to warrant reversal. In the event the Company’s expectations of future operating results change, an additional valuation allowance may be required to be established on the Company’s existing unreserved net U.S. deferred tax assets. | ||||||||||||
At December 31, 2013, the Company had net operating loss carry-forwards outside of the U.S. of approximately $41.7 million, the majority of which expires beyond 2027. | ||||||||||||
As of December 31, 2013, the Company has approximately $2.2 million of unrecognized tax benefits and does not expect to recognize any significant increases in unrecognized tax benefits during the next twelve-month period. Interest and penalties, if any, related to unrecognized tax benefits are recorded in income tax expense. During 2013, 2012 and 2011, the aggregate changes in the Company’s total gross amount of unrecognized tax benefits are summarized as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Beginning balance | $ | 1,834 | $ | 1,375 | $ | 816 | ||||||
Increases in unrecognized tax benefits – prior year positions | — | — | — | |||||||||
Increases in unrecognized tax benefits – current year positions | 385 | 459 | 559 | |||||||||
Ending balance | $ | 2,219 | $ | 1,834 | $ | 1,375 | ||||||
The Company’s U.S. federal tax returns for 2007 and subsequent years remain subject to examination by tax authorities. The Company is no longer subject to IRS examination for periods prior to 2007, although carryforward attributes that were generated prior to 2007 may still be adjusted upon examination by the IRS if they either have been or will be used in a future period. In the Company’s foreign tax jurisdictions, tax returns for 2009 and subsequent years generally remain open to examination. | ||||||||||||
As of December 31, 2013, the Company considered the outside book-over-tax basis difference in its foreign subsidiaries to be in the amount of approximately $43.1 million. United States income taxes have not been provided on this difference as it is the Company’s intention to reinvest the undistributed earnings of its foreign subsidiaries indefinitely. The Company’s U.S. operations are expected to be fully supported by existing cash balances and U.S.-generated cash flows. These foreign earnings could become subject to additional tax if remitted, or deemed remitted, to the United States as a dividend; however, it is not practicable to estimate the additional amount of taxes payable. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information and Non-cash Activity | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||||||
Supplemental Cash Flow Information and Non-cash Activity | ' | |||||||||||
Supplemental Cash Flow Information and Non-cash Activity | ||||||||||||
Supplemental disclosure of cash flow information is as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Cash paid during the period for: | ||||||||||||
Interest | $ | 9,576 | $ | 4,625 | $ | 6,440 | ||||||
Income taxes | 15,872 | 18,146 | 15,473 | |||||||||
Non-cash items from investing and financing activities: | ||||||||||||
Purchase of computer equipment financed through capital leases | 6,455 | 4,647 | 2,597 | |||||||||
Leasehold improvement paid by landlord | 5,000 | — | — | |||||||||
Conversion of the Company's investment in a convertible note to equity | 6,765 | — | — | |||||||||
Transfer of inventory to seismic rental equipment | 1,422 | 6,737 | 2,978 | |||||||||
Purchases of property, plant, and equipment and seismic rental equipment financed through accounts payable | 909 | — | — | |||||||||
Sale of rental equipment financed with a note receivable | 3,636 | — | 3,578 | |||||||||
Exchange of receivable related to a business acquisition | — | — | 2,000 | |||||||||
Reduction in multi-client data library related to finalization of accrued liabilities | — | — | 1,888 | |||||||||
Operating_Leases
Operating Leases | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Leases, Operating [Abstract] | ' | |||
Operating Leases | ' | |||
Operating Leases | ||||
Lessee. The Company leases certain equipment, offices and warehouse space under non-cancelable operating leases. Rental expense was $12.4 million, $14.4 million and $16.7 million for 2013, 2012 and 2011, respectively. | ||||
A summary of future rental commitments over the next five years under non-cancelable operating leases is as follows (in thousands): | ||||
Years Ending December 31, | ||||
2014 | $ | 9,299 | ||
2015 | 9,042 | |||
2016 | 9,517 | |||
2017 | 9,319 | |||
2018 | 8,698 | |||
Total | $ | 45,875 | ||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2013 | |
Fair Value Disclosures [Abstract] | ' |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
Authoritative guidance on fair value measurements defines fair value, establishes a framework for measuring fair value and stipulates the related disclosure requirements. The Company follows a three-level hierarchy, prioritizing and defining the types of inputs used to measure fair value. | |
Investment in Convertible Notes. In May 2011, the Company purchased a convertible note from a privately-owned U.S.-based technology company. The original principal amount of the note was $6.5 million, and the note accrued interest at a rate of 4% per annum. On April 25, 2013, the Company converted the principal and accrued interest on the indebtedness into 1,533,858 common shares of the investee which resulted in a post-conversion equity ownership percentage interest in the investee of 16.0%. This investment is now accounted for as a cost method investment. At April 25, 2013, prior to conversion, the note and accrued interest had a fair value of $6.5 million compared to a book value of $7.0 million resulting in a realized loss of $(0.5) million. The Company performed a fair value analysis with respect to its investment in the convertible note and interest using Level 3 inputs. These inputs included (i) an income approach, using a discounted cash flow model, (ii) a market approach, using peer company multiples, and (iii) a market approach, including terms and likelihood of an investment event. | |
In March 2012, the Company and the investee entered into an agreement for the Company to make available to the investee a credit facility in an amount of up to $4.0 million. The credit facility has since been amended, such that the current maturity date is March 2015, the annual interest rate is 0.25%, and the conversion provision allows for the conversion of any or all of the outstanding balance of the promissory note under the credit facility into common shares of the investee. As of December 31, 2013, the investee had drawn $4.0 million under this credit arrangement. | |
The Company performed a fair value analysis with respect to its investment in the convertible note using Level 3 inputs. These inputs included a market approach, including the terms and likelihood of an investment event. As of December 31, 2013, the fair value of this investment was approximately $4.2 million, including accrued interest. | |
Fair Value of Other Financial Instruments. Due to their highly liquid nature, the amount of the Company’s other financial instruments, including cash and cash equivalents, accounts and unbilled receivables, notes receivable, accounts payable and accrued multi-client data library royalties, represent their approximate fair value. | |
The carrying amounts of the Company’s long-term debt as of December 31, 2013 and December 31, 2012 were $220.2 million and $105.3 million, respectively, compared to its fair values of $190.4 million and $105.3 million as of December 31, 2013 and December 31, 2012, respectively. The fair value of the long-term debt was calculated using a market approach based upon Level 2 inputs, including a price quote from a major financial institution, as of December 31, 2013. As of December 31, 2012, Level 3 inputs were used, including an estimated interest rate reflecting then-current market conditions. | |
The Company’s cost method investments for which quoted market prices are not available are recorded at cost and reviewed periodically if there are events or changes in circumstances that may have a significant adverse effect on the fair value of the investments. |
Benefit_Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Benefit Plans | ' |
Benefit Plans | |
The Company has a 401(k) retirement savings plan, which covers substantially all employees. Employees may voluntarily contribute up to 60% of their compensation, as defined, to the plan. Effective June 1, 2000, the Company adopted a company matching contribution to the 401(k) plan. The Company matched the employee contribution at a rate of 50% of the first 6% of compensation contributed to the plan. In April 2009, the Company suspended its match to employee’s 401(k) plan contributions, but reinstated its matching contributions in April 2010. Company contributions to the plans were $1.7 million, $1.4 million and $1.3 million, during 2013, 2012 and 2011, respectively. |
Legal_Matters
Legal Matters | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Legal Matters | ' |
Legal Matters | |
WesternGeco | |
In June 2009, WesternGeco L.L.C. (“WesternGeco”) filed a lawsuit against the Company in the United States District Court for the Southern District of Texas, Houston Division. In the lawsuit, styled WesternGeco L.L.C. v. ION Geophysical Corporation, WesternGeco alleged that the Company infringed several method and apparatus claims contained in four of its United States patents regarding marine seismic streamer steering devices. WesternGeco sought unspecified monetary damages and an injunction prohibiting the Company from making, using, selling, offering for sale or supplying any infringing products in the United States. | |
In June 2010, WesternGeco filed a lawsuit against various subsidiaries and affiliates of Fugro N.V. (“Fugro”), one of the Company’s seismic contractor customers, accusing Fugro of infringing the same United States patents regarding marine seismic streamer steering devices by planning to use certain equipment purchased from the Company on a survey located outside of U.S. territorial waters. The court approved the consolidation of the Fugro case with the Company’s case. Fugro filed a motion to dismiss the lawsuit, and in March 2011 the presiding judge granted Fugro’s motion to dismiss in part, on the basis that the alleged activities of Fugro would occur more than 12 miles from the U.S. coast and therefore are not actionable under U.S. patent infringement law. | |
In response to a Motion for Summary Judgment filed jointly by the Company and Fugro, the Court ruled in April 2012 that the Company did not directly infringe WesternGeco’s method patent claims. In a pre-trial ruling on June 29, 2012, the Court ruled that, if a particular patent claim of WesternGeco was held to be valid and enforceable at the upcoming trial, the Company’s DigiFIN® lateral streamer control system, when combined with the Company’s lateral controller in the United States, would infringe one claim in one of WesternGeco’s asserted patents, U.S. Patent No. 7,293,520, under 35 U.S.C. §271(f)(1). | |
Trial began on July 23, 2012. During the trial, Fugro settled all claims asserted against it by WesternGeco and obtained a global license from WesternGeco. A verdict was returned by the jury on August 16, 2012, finding that the Company willfully infringed the claims contained in the four patents and awarded WesternGeco the sum of $105.9 million in damages, consisting of $12.5 million in reasonable royalty and $93.4 million in lost profits. | |
In September 2012, the Company filed motions with the trial court to overturn all or portions of the verdict. In June 2013, the presiding judge entered a Memorandum and Order rejecting the jury's finding of willfulness and denying WesternGeco's motions for willfulness and enhanced damages, but also denying the Company’s post-verdict motions that challenged the jury's infringement findings and the damages amount. In the Memorandum and Order, the judge also stated that he would approve WesternGeco’s motion for a permanent injunction and that WesternGeco is entitled to be awarded supplemental damages for the additional DigiFIN units that were supplied from the United States before and after trial that were not included in the jury verdict due to the timing of the trial. On October 24, 2013, the judge entered another Memorandum and Order, ruling on the number of DigiFIN units that are subject to supplemental damages and also ruling that the supplemental damages applicable to the additional units should be calculated by adding together the jury’s previous reasonable royalty and lost profits damages awards per unit, resulting in supplemental damages of $73.1 million. The total damages award in the case now consists of the jury award of $105.9 million and the supplemental damages award of $73.1 million, plus prejudgment interest and court costs. The October 2013 Memorandum and Order also concluded that the Company’s infringement involving the supplemental units was not willful and that WesternGeco was not entitled to receive enhanced damages. | |
The next probable step in the case is for the trial court judge to sign and enter a final judgment. As of the filing date of this Annual Report on Form 10-K, the Court had not yet entered a final judgment in the case. | |
Upon the entering of a final trial court judgment, the Company intends to appeal the judgment to the United States Court of Appeals for the Federal Circuit. WesternGeco would also have the right to elect to appeal any final judgment. | |
Either within its final judgment or in a separate order entered after its final judgment, the trial court has ruled that it will also enter a permanent injunction against the Company. As of the filing date of this Annual Report on Form 10-K, the Court had not issued the final terms of the permanent injunction. Until the permanent injunction is entered, the final terms of the injunction cannot be known for certain, but it is likely that the permanent injunction will prohibit the Company from supplying it DigiFIN units, two parts that are unique to the DigiFIN product and related software from the United States to its customers overseas with an intention for the customers to combine DigiFIN and the software with other required components of the patent claims. Although no permanent injunction has yet been entered, the Company has conducted its business in compliance with the Court’s orders in the case, and the Company has reorganized its operations such that it no longer supplies DigiFIN units, the unique DigiFIN parts or the related software from the United States. | |
Based on the Company’s analysis after the trial court’s Memorandum and Order in June 2013 denying its post-verdict motions that challenged the jury's infringement findings and the damages amount, the Company increased its loss contingency accrual related to this case from $10.0 million to $120.0 million, consisting of jury verdict damages, court costs, and estimates of prejudgment interest and supplemental damages. Based on its analysis after the trial court’s Memorandum and Order in October 2013 awarding supplemental damages, the Company further increased its loss contingency accrual related to this case from $120.0 million, to $193.3 million at December 31, 2013 consisting of jury verdict damages, supplemental damages, court costs and estimates of prejudgment interest. Additional interest will continue to accrue until this legal matter is fully resolved. | |
The Company’s assessment of its potential loss contingency may change in the future due to developments at the trial court or appellate court and other events, such as changes in applicable law, and such reassessment could lead to the determination that no loss contingency is probable or that a greater or lesser loss contingency is probable. Any such reassessment could have a material effect on the Company’s financial condition or results of operations. | |
As stated above, the Company intends to appeal the trial court judgment to the United States Court of Appeals for the Federal Circuit. In order to stay the judgment during the appeal, the Company will be required to post an appeal bond with the trial court after the final trial court judgment is entered. The amount of the appeal bond is in the discretion of the trial court judge, but it could be required to be up to the full amount of damages entered in the judgment, plus court costs and interest. To be prepared for an adverse judgment in this case, the Company has arranged with sureties to post an appeal bond on the Company’s behalf. The sureties have indicated they will likely require the Company to post cash collateral to secure the appeal bond amount for as long as the bond is outstanding. The Company currently believes that the sureties will likely require cash collateral equal to 25% of the appeal bond amount, although they will likely have the contractual right to require cash collateral for up to the full amount of the bond. Until the final judgment is entered and an appeal bond is posted, the terms applicable to the appeal bond, including the amount of collateral required to secure the bond, are not final. Depending on the size of the bond and the amount of collateral required, in order to collateralize the bond the Company would intend to utilize a combination of cash on hand and undrawn balances available under its revolving line of credit. If the appeal bond is required to cover the entire judgment amount and the Company is required to collateralize the full amount of the bond, the Company might also incur additional debt and/or equity financing. The collateralization of the full amount of a large appeal bond could have an adverse effect on the Company’s liquidity. | |
If the Company is unable to post the appeal bond, the Company will be unable to stay enforcement of the trial court judgment during the appeal of the judgment. Until the trial court enters the final judgment and rules on the amount of the appeal bond, the Company is unable to determine for certain the required amount of the bond and whether and to what extent the sureties will require the appeal bond to be collateralized. Similarly, the Company is unable to predict the timing of the final judgment being entered by the trial court or the timing of posting the required appeal bond. | |
Any requirements that the Company collateralize the appeal bond will reduce its liquidity and may reduce the borrowings otherwise available under its credit facility. The current maturity date of any outstanding debt under the Company’s Credit Facility is March 2015. No assurances can be made whether the Company’s efforts to raise additional cash would be successful and, if so, on what terms and conditions, and at what cost the Company might be able to secure any such financing. | |
Fletcher | |
In November 2009, Fletcher International, Ltd. (“Fletcher”), the sole holder of all of the outstanding shares of the Company’s Series D Preferred Stock until June 2012, filed a lawsuit against the Company and certain of its directors in the Delaware Court of Chancery. In the lawsuit, styled Fletcher International, Ltd. v. ION Geophysical Corporation, et al, Fletcher alleged, among other things, that the Company violated Fletcher’s consent rights contained in the Series D Preferred Stock Certificates of Designation, by (a) the execution and delivery of a convertible promissory note to the Bank of China, New York Branch by one of the Company’s subsidiaries (incorporated in Luxembourg), in connection with a bridge loan funded in October 2009 by Bank of China, and (b) the Company’s Canadian subsidiary executing and delivering several promissory notes in 2008 in connection with the Company’s acquisition of ARAM Systems Ltd. Fletcher also alleged that the Company’s directors violated their fiduciary duties by allowing the subsidiaries to deliver the notes without Fletcher’s consent. In a Memorandum Opinion issued in May 2010 in response to a motion for partial summary judgment, the judge dismissed all of Fletcher’s claims against the named directors but also concluded that, because the bridge loan note executed by the Company’s Luxembourg subsidiary in 2009 was convertible into the Company’s common stock, Fletcher had the right to consent to the issuance of the note and that the Company had violated Fletcher’s consent rights by that subsidiary’s issuing the bridge loan note without Fletcher’s consent. In March 2011, the judge dismissed certain additional claims asserted by Fletcher. In May 2012, the judge ruled that Fletcher did not have the right to consent with respect to two of the promissory notes executed and delivered by the Company’s Canadian subsidiary in September 2008 in connection with the Company’s purchase of ARAM Systems Ltd., but that (i) Fletcher did have the right to consent to the execution and delivery in December 2008 of a replacement promissory note in the principal amount of $35 million, and (ii) the Company had violated Fletcher’s consent rights by the subsidiary’s executing and delivering the replacement promissory note without Fletcher’s consent. Fletcher elected not to pursue damages related to the issuance of the replacement $35 million promissory note. | |
In June 2012, Fletcher filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Southern District of New York. Fletcher’s shares of Series D Preferred Stock, which had been pledged by Fletcher to secure certain indebtedness, were sold by the pledgee to an affiliate of D.E. Shaw & Co., Inc. in June 2012. On September 30, 2013, the holder of the shares of Series D Preferred Stock fully converted all of the shares into shares of the Company’s common stock. After the conversion, there were no shares of Series D Preferred Stock outstanding. | |
After a trial to determine the amount of damages that the Company would owe Fletcher as a result of the bridge loan note being issued without Fletcher’s consent, in December 2013 the presiding judge awarded Fletcher $300,000 in damages, plus prejudgment interest. The Company agreed to pay Fletcher the amount of $500,000 to settle the case and all rights of appeal. The amount of the settlement, along with the Company’s fees and expenses incurred in connection with the case, is covered by insurance, subject to applicable deductibles. | |
Sercel | |
In January 2010, the jury in a patent infringement lawsuit filed by the Company against seismic equipment provider Sercel, Inc. in the United States District Court for the Eastern District of Texas returned a verdict in the Company’s favor. In the lawsuit, styled Input/Output, Inc. et al v. Sercel, Inc., (5-6-cv-236), the Company alleged that Sercel’s 408, 428 and SeaRay digital seismic sensor units infringe the Company’s United States Patent No. 5,852,242, which is incorporated in the Company’s VectorSeis sensor technology. The jury concluded that Sercel infringed the Company’s patent, and the jury awarded the Company $25.2 million in compensatory past damages. | |
In response to post-verdict motions made by the parties, in September 2010, the presiding judge issued a series of rulings that (a) granted the Company’s motion for a permanent injunction to be issued prohibiting the manufacture, use or sale of the infringing Sercel products, (b) confirmed that the Company’s patent was valid, (c) confirmed that the jury’s finding of infringement was supported by the evidence and (d) disallowed $5.4 million of lost profits damages. In addition, the judge concluded that the evidence supporting the jury’s finding that the Company was entitled to be awarded $9.0 million in lost profits associated with certain infringing pre-verdict marine sales by Sercel was too speculative and therefore disallowed that award of lost profits. As a result of the judge’s ruling, the Company was entitled to be awarded an additional amount of damages equal to a reasonable royalty on the infringing pre-verdict Sercel marine sales. | |
In February 2011, the Court entered a final judgment and permanent injunction in the case. The final judgment awarded the Company $10.7 million in damages plus interest, and the permanent injunction prohibits Sercel and parties acting in concert with Sercel from making, using, offering to sell, selling, or importing in the United States (which includes territorial waters of the United States) Sercel’s 408UL, 428XL and SeaRay digital sensor units, and all other products that are only colorably different from those products. Sercel and the Company appealed portions of the final judgment, and on February 17, 2012, the appellate court upheld the final judgment. In April 2012, Sercel paid the Company $12.0 million pursuant to the final judgment. In its judgment, the Court also ordered that the additional damages to be paid by Sercel as a reasonable royalty on the infringing pre-verdict Sercel marine sales and the additional damages to be paid by Sercel resulting from additional infringing sales would be determined in a separate proceeding to be conducted in the future. In December 2012, the Company and Sercel settled all remaining claims in exchange for $19.0 million and an agreement by Sercel to pay the Company royalties on future sales. Under this agreement, the Company has no continuing obligations. | |
Other | |
The Company has been named in various other lawsuits or threatened actions that are incidental to its ordinary business. Litigation is inherently unpredictable. Any claims against the Company, whether meritorious or not, could be time-consuming, cause the Company to incur costs and expenses, require significant amounts of management time and result in the diversion of significant operational resources. The results of these lawsuits and actions cannot be predicted with certainty. Management currently believes that the ultimate resolution of these matters will not have a material adverse impact on the financial condition, results of operations or liquidity of the Company. |
Restructuring_Activities
Restructuring Activities | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Restructuring Activities | ' | |||||||||||||||
Restructuring Activities | ||||||||||||||||
In the third quarter of 2013, the Company initiated a restructuring of its Systems segment. This restructuring involves the closing of certain manufacturing facilities and reducing headcount in those and other facilities. The Company incurred a total of $28.0 million of charges, including $6.7 million of cash expenditures. | ||||||||||||||||
As of September 30, 2013, the Company had reduced its employee headcount in its Systems segment by 31% of the total Systems full-time employee headcount. As of December 31, 2013, the Company had a remaining accrual of $0.3 million related to severance costs resulting from the reductions. Of the total amount expensed in 2013, $3.7 million is included in cost of sales, with the remaining $1.9 million included in operating expenses. | ||||||||||||||||
During 2013, the Company recognized the following pre-tax charges related to its Systems segment restructuring activity: | ||||||||||||||||
Facility charges | Severance charges | Asset write-downs and other | Total | |||||||||||||
Cost of goods sold | $ | 647 | $ | 3,729 | $ | 21,351 | $ | 25,727 | ||||||||
Operating expenses | $ | — | $ | 1,873 | $ | 383 | $ | 2,256 | ||||||||
Consolidated total | $ | 647 | $ | 5,602 | $ | 21,734 | $ | 27,983 | ||||||||
Selected_Quarterly_Information
Selected Quarterly Information (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Selected Quarterly Information (Unaudited) | ' | |||||||||||||||
Selected Quarterly Information — (Unaudited) | ||||||||||||||||
A summary of selected quarterly information is as follows (in thousands, except per share amounts): | ||||||||||||||||
Three Months Ended | ||||||||||||||||
Year Ended December 31, 2013 | March 31 | June 30 | September 30 | December 31 | ||||||||||||
Service revenues | $ | 89,949 | $ | 89,603 | $ | 44,679 | $ | 167,086 | ||||||||
Product revenues | 39,788 | 31,312 | 35,159 | 51,591 | ||||||||||||
Total net revenues | 129,737 | 120,915 | 79,838 | 218,677 | ||||||||||||
Gross profit | 34,957 | 36,618 | (15,104 | ) | 102,842 | |||||||||||
Income (loss) from operations | 1,923 | 6,770 | (56,528 | ) | 64,231 | |||||||||||
Interest expense, net | (1,066 | ) | (2,756 | ) | (4,281 | ) | (4,241 | ) | ||||||||
Equity in earnings (losses) of investments | 1,116 | (6,338 | ) | (5,192 | ) | (31,906 | ) | |||||||||
Other income (expense) | 1,027 | (107,118 | ) | (74,301 | ) | (2,138 | ) | |||||||||
Income tax expense (benefit) | 1,201 | (38,705 | ) | 56,954 | 6,270 | |||||||||||
Net (income) loss attributable to noncontrolling interests | 76 | (59 | ) | 498 | 143 | |||||||||||
Preferred stock dividends | 338 | 338 | 5,338 | — | ||||||||||||
Net income (loss) applicable to common shares | $ | 1,537 | $ | (71,134 | ) | $ | (202,096 | ) | $ | 19,819 | ||||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 0.01 | $ | (0.45 | ) | $ | (1.29 | ) | $ | 0.12 | ||||||
Diluted | $ | 0.01 | $ | (0.45 | ) | $ | (1.29 | ) | $ | 0.12 | ||||||
Three Months Ended | ||||||||||||||||
Year Ended December 31, 2012 | March 31 | June 30 | September 30 | December 31 | ||||||||||||
Service revenues | $ | 66,634 | $ | 72,844 | $ | 93,023 | $ | 122,082 | ||||||||
Product revenues | 45,076 | 32,370 | 43,300 | 50,988 | ||||||||||||
Total net revenues | 111,710 | 105,214 | 136,323 | 173,070 | ||||||||||||
Gross profit | 41,156 | 45,943 | 55,958 | 72,744 | ||||||||||||
Income from operations | 11,643 | 12,972 | 25,049 | 24,863 | ||||||||||||
Interest expense, net | (1,518 | ) | (1,364 | ) | (1,237 | ) | (1,146 | ) | ||||||||
Equity in earnings (losses) of investments | 2,468 | 3,777 | (1,684 | ) | (4,264 | ) | ||||||||||
Other income (expense) | (686 | ) | 895 | (936 | ) | 17,851 | ||||||||||
Income tax expense | 3,445 | 4,184 | 6,037 | 10,191 | ||||||||||||
Net loss attributable to noncontrolling interests | 113 | 281 | 42 | 53 | ||||||||||||
Preferred stock dividends | 338 | 338 | 338 | 338 | ||||||||||||
Net income applicable to common shares | $ | 8,237 | $ | 12,039 | $ | 14,859 | $ | 26,828 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.05 | $ | 0.08 | $ | 0.1 | $ | 0.17 | ||||||||
Diluted | $ | 0.05 | $ | 0.08 | $ | 0.09 | $ | 0.17 | ||||||||
Certain_Relationships_and_Rela
Certain Relationships and Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Certain Relationships and Related Party Transactions | ' |
Certain Relationships and Related Party Transactions | |
For 2013, 2012 and 2011, the Company recorded revenues from BGP of $8.0 million, $13.7 million and $34.5 million, respectively. Receivables due from BGP were $1.5 million and $1.6 million at December 31, 2013 and 2012, respectively. BGP owned approximately 14.5% of the Company’s outstanding common stock as of December 31, 2013. For 2013, the Company paid to BGP $46.2 million for seismic acquisition services provided on one of the Company’s new venture projects. At December 31, 2013, the Company owed BGP $1.5 million for unpaid services received for that project. | |
Mr. James M. Lapeyre, Jr. is the Chairman of the Board on ION’s board of directors and a significant equity owner of Laitram, L.L.C. (Laitram), and he has served as president of Laitram and its predecessors since 1989. Laitram is a privately-owned, New Orleans-based manufacturer of food processing equipment and modular conveyor belts. Mr. Lapeyre and Laitram together owned approximately 6.3% of the Company’s outstanding common stock as of December 31, 2013. | |
The Company acquired DigiCourse, Inc., the Company’s marine positioning products business, from Laitram in 1998. In connection with that acquisition, the Company entered into a Continued Services Agreement with Laitram under which Laitram agreed to provide the Company certain bookkeeping, software, manufacturing and maintenance services. Manufacturing services consist primarily of machining of parts for the Company’s marine positioning systems. The term of this agreement expired in September 2001 but the Company continues to operate under its terms. In addition, from time to time, when the Company has requested, the legal staff of Laitram has advised the Company on certain intellectual property matters with regard to the Company’s marine positioning systems. Under an amended lease of commercial property dated February 1, 2006, between Lapeyre Properties, L.L.C. (an affiliate of Laitram) and ION, the Company has leased certain office and warehouse space from Lapeyre Properties through January 2014, with the right to terminate the lease sooner upon 12 months’ notice. During 2013, the Company paid Laitram and its affiliates a total of approximately $4.2 million, which consisted of approximately $3.5 million for manufacturing services, $0.4 million for rent and other pass-through third party facilities charges, and $0.3 million for reimbursement for costs related to providing administrative and other back-office support services in connection with the Company’s Louisiana marine operations. For the 2012 and 2011 fiscal years, the Company paid Laitram and its affiliates a total of approximately $4.1 million and $6.3 million, respectively, for these services. In the opinion of the Company’s management, the terms of these services are fair and reasonable and as favorable to the Company as those that could have been obtained from unrelated third parties at the time of their performance. | |
In July 2013, the Company agreed to lend up to $10.0 million to INOVA Geophysical, and received a promissory note issued by INOVA Geophysical to the order of the Company, which was scheduled to mature on September 30, 2013. The loan was made by the Company to support certain short-term working capital needs of INOVA Geophysical. The indebtedness under the note accrues interest at an annual rate equal to the London Interbank Offered Rate plus 650 basis points. In July 2013, the Company advanced the full principal amount of $10.0 million to INOVA Geophysical under the promissory note. During the second half of 2013, the Company received payments totaling $5.0 million from INOVA Geophysical on the loan. The maturity date of the note has been extended to March 31, 2014. |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||||||||||
Condensed Consolidating Financial Information | ' | |||||||||||||||||||
Condensed Consolidating Financial Information | ||||||||||||||||||||
In May 2013, the Company sold $175 million of Senior Secured Second-Priority Notes. The notes were issued by ION Geophysical Corporation, and are guaranteed by the Company’s current material U.S. subsidiaries: GX Technology Corporation, ION Exploration Products (U.S.A.), Inc. and I/O Marine Systems, Inc. (“the Guarantors”), which are 100-percent-owned subsidiaries. The Guarantors have fully and unconditionally guaranteed the payment obligations of ION Geophysical Corporation with respect to these debt securities. The following condensed consolidating financial information presents the results of operations, financial position and cash flows for: | ||||||||||||||||||||
• | ION Geophysical Corporation and the guarantor subsidiaries (in each case, reflecting investments in subsidiaries utilizing the equity method of accounting). | |||||||||||||||||||
• | All other nonguarantor subsidiaries. | |||||||||||||||||||
• | The consolidating adjustments necessary to present ION Geophysical Corporation’s results on a consolidated basis. | |||||||||||||||||||
This condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements and notes. | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Balance Sheet | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 124,701 | $ | — | $ | 23,355 | $ | — | $ | 148,056 | ||||||||||
Accounts receivable, net | 1,874 | 99,547 | 48,027 | — | 149,448 | |||||||||||||||
Unbilled receivables | — | 33,490 | 15,978 | — | 49,468 | |||||||||||||||
Inventories | — | 6,595 | 50,578 | — | 57,173 | |||||||||||||||
Prepaid expenses and other current assets | 12,888 | 5,030 | 7,438 | (584 | ) | 24,772 | ||||||||||||||
Total current assets | 139,463 | 144,662 | 145,376 | (584 | ) | 428,917 | ||||||||||||||
Deferred income tax asset | 6,513 | 6,960 | 489 | 688 | 14,650 | |||||||||||||||
Property, plant, equipment and seismic rental equipment, net | 6,440 | 29,845 | 10,399 | — | 46,684 | |||||||||||||||
Multi-client data library, net | — | 212,572 | 26,212 | — | 238,784 | |||||||||||||||
Equity method investments | 51,065 | — | 2,800 | — | 53,865 | |||||||||||||||
Investment in subsidiaries | 699,695 | 248,482 | — | (948,177 | ) | — | ||||||||||||||
Goodwill | — | 26,984 | 28,892 | — | 55,876 | |||||||||||||||
Intangible assets, net | — | 8,246 | 3,001 | — | 11,247 | |||||||||||||||
Intercompany receivables | 8,313 | 13,419 | — | (21,732 | ) | — | ||||||||||||||
Other assets | 14,315 | 56 | 24,262 | (23,985 | ) | 14,648 | ||||||||||||||
Total assets | $ | 925,804 | $ | 691,226 | $ | 241,431 | $ | (993,790 | ) | $ | 864,671 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Current maturities of long-term debt | $ | — | $ | 4,716 | $ | 1,190 | $ | — | $ | 5,906 | ||||||||||
Accounts payable | 3,515 | 11,741 | 7,364 | 34 | 22,654 | |||||||||||||||
Accrued expenses | 16,652 | 54,250 | 13,392 | 64 | 84,358 | |||||||||||||||
Accrued multi-client data library royalties | — | 45,921 | 539 | — | 46,460 | |||||||||||||||
Deferred revenue | — | 16,387 | 4,295 | — | 20,682 | |||||||||||||||
Total current liabilities | 20,167 | 133,015 | 26,780 | 98 | 180,060 | |||||||||||||||
Long-term debt, net of current maturities | 210,000 | 3,655 | 591 | — | 214,246 | |||||||||||||||
Intercompany payables | 426,134 | — | 21,732 | (447,866 | ) | — | ||||||||||||||
Other long-term liabilities | 11,757 | 214,211 | 8,637 | (24,003 | ) | 210,602 | ||||||||||||||
Total liabilities | 668,058 | 350,881 | 57,740 | (471,771 | ) | 604,908 | ||||||||||||||
Redeemable noncontrolling interests | — | — | 1,878 | — | 1,878 | |||||||||||||||
Stockholders’ equity: | ||||||||||||||||||||
Common stock | 1,637 | 290,460 | 19,138 | (309,598 | ) | 1,637 | ||||||||||||||
Additional paid-in capital | 879,969 | 180,700 | 235,381 | (416,081 | ) | 879,969 | ||||||||||||||
Accumulated earnings (deficit) | (606,157 | ) | 232,186 | (4,010 | ) | (228,176 | ) | (606,157 | ) | |||||||||||
Accumulated other comprehensive income (loss) | (11,138 | ) | 6,218 | (11,920 | ) | 5,702 | (11,138 | ) | ||||||||||||
Due from ION Geophysical Corporation | — | (369,219 | ) | (56,915 | ) | 426,134 | — | |||||||||||||
Treasury stock | (6,565 | ) | — | — | — | (6,565 | ) | |||||||||||||
Total stockholders’ equity | 257,746 | 340,345 | 181,674 | (522,019 | ) | 257,746 | ||||||||||||||
Noncontrolling interests | — | — | 139 | — | 139 | |||||||||||||||
Total equity | 257,746 | 340,345 | 181,813 | (522,019 | ) | 257,885 | ||||||||||||||
Total liabilities and equity | $ | 925,804 | $ | 691,226 | $ | 241,431 | $ | (993,790 | ) | $ | 864,671 | |||||||||
December 31, 2012 | ||||||||||||||||||||
Balance Sheet | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 30,343 | $ | — | $ | 30,628 | $ | — | $ | 60,971 | ||||||||||
Accounts receivable, net | 21,657 | 51,270 | 54,071 | 138 | 127,136 | |||||||||||||||
Unbilled receivables | — | 74,715 | 15,069 | — | 89,784 | |||||||||||||||
Inventories | — | 14,145 | 56,530 | — | 70,675 | |||||||||||||||
Prepaid expenses and other current assets | 7,258 | 7,079 | 13,723 | (2,455 | ) | 25,605 | ||||||||||||||
Total current assets | 59,258 | 147,209 | 170,021 | (2,317 | ) | 374,171 | ||||||||||||||
Deferred income tax asset | 16,747 | 6,167 | 151 | 5,349 | 28,414 | |||||||||||||||
Property, plant, equipment and seismic rental equipment, net | 4,048 | 19,118 | 10,595 | 11 | 33,772 | |||||||||||||||
Multi-client data library, net | — | 202,838 | 27,477 | — | 230,315 | |||||||||||||||
Equity method investments | 73,925 | — | — | — | 73,925 | |||||||||||||||
Investment in subsidiaries | 863,134 | 259,716 | — | (1,122,850 | ) | — | ||||||||||||||
Goodwill | — | 26,984 | 28,365 | — | 55,349 | |||||||||||||||
Intangible assets, net | — | 10,677 | 4,164 | — | 14,841 | |||||||||||||||
Intercompany receivables | 10,593 | — | 3,388 | (13,981 | ) | — | ||||||||||||||
Other assets | 9,501 | 122 | 30,173 | (30,000 | ) | 9,796 | ||||||||||||||
Total assets | $ | 1,037,206 | $ | 672,831 | $ | 274,334 | $ | (1,163,788 | ) | $ | 820,583 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Current maturities of long-term debt | $ | — | $ | 2,307 | $ | 1,189 | $ | — | $ | 3,496 | ||||||||||
Accounts payable | 3,734 | 13,568 | 11,386 | — | 28,688 | |||||||||||||||
Accrued expenses | 49,582 | 59,100 | 17,153 | (1,740 | ) | 124,095 | ||||||||||||||
Accrued multi-client data library royalties | — | 26,082 | 218 | — | 26,300 | |||||||||||||||
Deferred revenue | — | 19,863 | 7,036 | — | 26,899 | |||||||||||||||
Total current liabilities | 53,316 | 120,920 | 36,982 | (1,740 | ) | 209,478 | ||||||||||||||
Long-term debt, net of current maturities | 97,250 | 2,857 | 1,725 | — | 101,832 | |||||||||||||||
Intercompany payables | 375,768 | 13,981 | — | (389,749 | ) | — | ||||||||||||||
Other long-term liabilities | 12,387 | 20,000 | 961 | (25,217 | ) | 8,131 | ||||||||||||||
Total liabilities | 538,721 | 157,758 | 39,668 | (416,706 | ) | 319,441 | ||||||||||||||
Redeemable noncontrolling interests | — | — | 2,123 | — | 2,123 | |||||||||||||||
Stockholders’ equity: | ||||||||||||||||||||
Cumulative convertible preferred stock | 27,000 | — | — | — | 27,000 | |||||||||||||||
Common stock | 1,564 | 290,460 | 11,506 | (301,966 | ) | 1,564 | ||||||||||||||
Additional paid-in capital | 848,669 | 175,006 | 235,116 | (410,122 | ) | 848,669 | ||||||||||||||
Accumulated earnings (deficit) | (360,297 | ) | 400,932 | 16,732 | (417,664 | ) | (360,297 | ) | ||||||||||||
Accumulated other comprehensive income (loss) | (11,886 | ) | 5,639 | (12,541 | ) | 6,902 | (11,886 | ) | ||||||||||||
Due from ION Geophysical Corporation | — | (356,964 | ) | (18,804 | ) | 375,768 | — | |||||||||||||
Treasury stock | (6,565 | ) | — | — | — | (6,565 | ) | |||||||||||||
Total stockholders’ equity | 498,485 | 515,073 | 232,009 | (747,082 | ) | 498,485 | ||||||||||||||
Noncontrolling interests | — | — | 534 | — | 534 | |||||||||||||||
Total equity | 498,485 | 515,073 | 232,543 | (747,082 | ) | 499,019 | ||||||||||||||
Total liabilities and equity | $ | 1,037,206 | $ | 672,831 | $ | 274,334 | $ | (1,163,788 | ) | $ | 820,583 | |||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Total net revenues | $ | — | $ | 337,570 | $ | 213,826 | $ | (2,229 | ) | $ | 549,167 | |||||||||
Cost of goods sold | — | 240,704 | 151,379 | (2,229 | ) | 389,854 | ||||||||||||||
Gross profit | — | 96,866 | 62,447 | — | 159,313 | |||||||||||||||
Total operating expenses | 35,054 | 62,028 | 45,835 | — | 142,917 | |||||||||||||||
Income (loss) from operations | (35,054 | ) | 34,838 | 16,612 | — | 16,396 | ||||||||||||||
Interest expense, net | (12,102 | ) | (49 | ) | (193 | ) | — | (12,344 | ) | |||||||||||
Intercompany interest, net | 411 | (1,374 | ) | 963 | — | — | ||||||||||||||
Equity in earnings (losses) of investments | (192,220 | ) | (19,755 | ) | (19,833 | ) | 189,488 | (42,320 | ) | |||||||||||
Other income (expense) | 12,166 | (193,289 | ) | (1,407 | ) | — | (182,530 | ) | ||||||||||||
Income (loss) before income taxes | (226,799 | ) | (179,629 | ) | (3,858 | ) | 189,488 | (220,798 | ) | |||||||||||
Income tax expense (benefit) | 19,061 | (10,883 | ) | 17,542 | — | 25,720 | ||||||||||||||
Net income (loss) | (245,860 | ) | (168,746 | ) | (21,400 | ) | 189,488 | (246,518 | ) | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 658 | — | 658 | |||||||||||||||
Net income (loss) attributable to ION | (245,860 | ) | (168,746 | ) | (20,742 | ) | 189,488 | (245,860 | ) | |||||||||||
Payment of preferred dividends and conversion payment | 6,014 | — | — | — | 6,014 | |||||||||||||||
Net income (loss) applicable to common shares | $ | (251,874 | ) | $ | (168,746 | ) | $ | (20,742 | ) | $ | 189,488 | $ | (251,874 | ) | ||||||
Comprehensive net income (loss) | $ | (245,112 | ) | $ | (168,167 | ) | $ | (20,779 | ) | $ | 188,288 | $ | (245,770 | ) | ||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 658 | — | 658 | |||||||||||||||
Comprehensive net income (loss) attributable to ION | $ | (245,112 | ) | $ | (168,167 | ) | $ | (20,121 | ) | $ | 188,288 | $ | (245,112 | ) | ||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Total net revenues | $ | — | $ | 311,758 | $ | 214,939 | $ | (380 | ) | $ | 526,317 | |||||||||
Cost of goods sold | — | 192,639 | 118,257 | (380 | ) | 310,516 | ||||||||||||||
Gross profit | — | 119,119 | 96,682 | — | 215,801 | |||||||||||||||
Total operating expenses | 35,982 | 61,315 | 43,977 | — | 141,274 | |||||||||||||||
Income (loss) from operations | (35,982 | ) | 57,804 | 52,705 | — | 74,527 | ||||||||||||||
Interest expense, net | (5,137 | ) | 198 | (326 | ) | — | (5,265 | ) | ||||||||||||
Intercompany interest, net | 232 | (629 | ) | 397 | — | — | ||||||||||||||
Equity in earnings (losses) of investments | 58,162 | 33,958 | — | (91,823 | ) | 297 | ||||||||||||||
Other income (expense) | 29,447 | (10,334 | ) | (1,989 | ) | — | 17,124 | |||||||||||||
Income (loss) before income taxes | 46,722 | 80,997 | 50,787 | (91,823 | ) | 86,683 | ||||||||||||||
Income tax expense (benefit) | (16,593 | ) | 21,771 | 18,679 | — | 23,857 | ||||||||||||||
Net income (loss) | 63,315 | 59,226 | 32,108 | (91,823 | ) | 62,826 | ||||||||||||||
Net loss attributable to noncontrolling interests | — | — | 489 | — | 489 | |||||||||||||||
Net income (loss) attributable to ION | 63,315 | 59,226 | 32,597 | (91,823 | ) | 63,315 | ||||||||||||||
Preferred stock dividends | 1,352 | — | — | — | 1,352 | |||||||||||||||
Net income (loss) applicable to common shares | $ | 61,963 | $ | 59,226 | $ | 32,597 | $ | (91,823 | ) | $ | 61,963 | |||||||||
Comprehensive net income (loss) | $ | 67,622 | $ | 62,085 | $ | 34,967 | $ | (97,541 | ) | $ | 67,133 | |||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 489 | — | 489 | |||||||||||||||
Comprehensive net income (loss) attributable to ION | $ | 67,622 | $ | 62,085 | $ | 35,456 | $ | (97,541 | ) | $ | 67,622 | |||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Total net revenues | $ | — | $ | 254,084 | $ | 201,320 | $ | (783 | ) | $ | 454,621 | |||||||||
Cost of goods sold | — | 163,349 | 118,248 | (421 | ) | 281,176 | ||||||||||||||
Gross profit | — | 90,735 | 83,072 | (362 | ) | 173,445 | ||||||||||||||
Total operating expenses | 26,504 | 44,205 | 36,303 | (362 | ) | 106,650 | ||||||||||||||
Income (loss) from operations | (26,504 | ) | 46,530 | 46,769 | — | 66,795 | ||||||||||||||
Interest expense, net | (5,804 | ) | 172 | (152 | ) | — | (5,784 | ) | ||||||||||||
Intercompany interest, net | 182 | (507 | ) | 325 | — | — | ||||||||||||||
Equity in earnings (losses) of investments | 44,051 | 38,931 | — | (105,844 | ) | (22,862 | ) | |||||||||||||
Other income (expense) | (1,278 | ) | (106 | ) | (2,063 | ) | — | (3,447 | ) | |||||||||||
Income (loss) before income taxes | 10,647 | 85,020 | 44,879 | (105,844 | ) | 34,702 | ||||||||||||||
Income tax expense (benefit) | (14,127 | ) | 16,076 | 8,187 | — | 10,136 | ||||||||||||||
Net income (loss) | 24,774 | 68,944 | 36,692 | (105,844 | ) | 24,566 | ||||||||||||||
Net loss attributable to noncontrolling interests | — | — | 208 | — | 208 | |||||||||||||||
Net income (loss) attributable to ION | 24,774 | 68,944 | 36,900 | (105,844 | ) | 24,774 | ||||||||||||||
Preferred stock dividends | 1,352 | — | — | — | 1,352 | |||||||||||||||
Net income (loss) applicable to common shares | $ | 23,422 | $ | 68,944 | $ | 36,900 | $ | (105,844 | ) | $ | 23,422 | |||||||||
Comprehensive net income (loss) | $ | 24,111 | $ | 68,909 | $ | 36,657 | $ | (105,774 | ) | $ | 23,903 | |||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 208 | — | 208 | |||||||||||||||
Comprehensive net income (loss) attributable to ION | $ | 24,111 | $ | 68,909 | $ | 36,865 | $ | (105,774 | ) | $ | 24,111 | |||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Statement of Cash Flows | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (50,731 | ) | $ | 166,838 | $ | 31,480 | $ | — | $ | 147,587 | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Investment in multi-client data library | — | (111,689 | ) | (2,893 | ) | — | (114,582 | ) | ||||||||||||
Purchase of property, plant, equipment and seismic rental equipment | (2,075 | ) | (10,171 | ) | (4,668 | ) | — | (16,914 | ) | |||||||||||
Net advances to INOVA Geophysical | (5,000 | ) | — | — | — | (5,000 | ) | |||||||||||||
Investment in and advances to OceanGeo B.V. | — | — | (24,755 | ) | — | (24,755 | ) | |||||||||||||
Proceeds from sale of a cost method investment | 4,150 | — | — | — | 4,150 | |||||||||||||||
Investment in convertible notes | (2,000 | ) | — | — | — | (2,000 | ) | |||||||||||||
Capital contribution to affiliate | (5,695 | ) | (7,897 | ) | — | 13,592 | — | |||||||||||||
Other investing activities | — | 128 | — | — | 128 | |||||||||||||||
Net cash provided by (used in) investing activities | (10,620 | ) | (129,629 | ) | (32,316 | ) | 13,592 | (158,973 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from issuance of notes | 175,000 | — | — | — | 175,000 | |||||||||||||||
Payments under revolving line of credit | (97,250 | ) | — | — | — | (97,250 | ) | |||||||||||||
Borrowings under revolving line of credit | 35,000 | — | — | — | 35,000 | |||||||||||||||
Payments on notes payable and long-term debt | — | (3,249 | ) | (1,112 | ) | — | (4,361 | ) | ||||||||||||
Cost associated with issuance of notes | (6,773 | ) | — | — | — | (6,773 | ) | |||||||||||||
Capital contribution from affiliate | — | 5,695 | 7,897 | (13,592 | ) | — | ||||||||||||||
Intercompany lending | 52,646 | (39,655 | ) | (12,991 | ) | — | — | |||||||||||||
Payment of preferred dividends and conversion payment | (6,014 | ) | — | — | — | (6,014 | ) | |||||||||||||
Proceeds from employee stock purchases and exercise of stock options | 2,527 | — | — | — | 2,527 | |||||||||||||||
Excess tax benefit from stock-based compensation | 276 | — | — | — | 276 | |||||||||||||||
Contribution from noncontrolling interests | — | — | — | — | — | |||||||||||||||
Other financing activities | 297 | — | — | — | 297 | |||||||||||||||
Net cash provided by (used in) financing activities | 155,709 | (37,209 | ) | (6,206 | ) | (13,592 | ) | 98,702 | ||||||||||||
Effect of change in foreign currency exchange rates on cash and cash equivalents | — | — | (231 | ) | — | (231 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 94,358 | — | (7,273 | ) | — | 87,085 | ||||||||||||||
Cash and cash equivalents at beginning of period | 30,343 | — | 30,628 | — | 60,971 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 124,701 | $ | — | $ | 23,355 | $ | — | $ | 148,056 | ||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Statement of Cash Flows | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 19,362 | $ | 105,768 | $ | 43,951 | $ | — | $ | 169,081 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Investment in multi-client data library | — | (121,424 | ) | (24,203 | ) | — | (145,627 | ) | ||||||||||||
Purchase of property, plant, equipment and seismic rental equipment | (2,485 | ) | (9,947 | ) | (4,218 | ) | — | (16,650 | ) | |||||||||||
Maturity (net purchases) of short-term investments | 20,000 | — | — | — | 20,000 | |||||||||||||||
Investment in convertible notes | (2,000 | ) | — | — | — | (2,000 | ) | |||||||||||||
Net cash provided by (used in) investing activities | 15,515 | (131,371 | ) | (28,421 | ) | — | (144,277 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Payments under revolving line of credit | (51,000 | ) | — | — | — | (51,000 | ) | |||||||||||||
Borrowings under revolving line of credit | 148,250 | — | — | — | 148,250 | |||||||||||||||
Payments on notes payable and long-term debt | (99,270 | ) | (1,626 | ) | (806 | ) | — | (101,702 | ) | |||||||||||
Intercompany lending | (21,699 | ) | 27,229 | (5,530 | ) | — | — | |||||||||||||
Payment of preferred dividends | (1,352 | ) | — | — | — | (1,352 | ) | |||||||||||||
Proceeds from employee stock purchases and exercise of stock options | 807 | — | — | — | 807 | |||||||||||||||
Excess tax benefit from stock-based compensation | 193 | — | — | — | 193 | |||||||||||||||
Contribution from noncontrolling interests | — | — | 212 | — | 212 | |||||||||||||||
Other financing activities | (1,862 | ) | — | — | — | (1,862 | ) | |||||||||||||
Net cash provided by (used in) financing activities | (25,933 | ) | 25,603 | (6,124 | ) | — | (6,454 | ) | ||||||||||||
Effect of change in foreign currency exchange rates on cash and cash equivalents | 2 | — | 217 | — | 219 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | 8,946 | — | 9,623 | — | 18,569 | |||||||||||||||
Cash and cash equivalents at beginning of period | 21,397 | — | 21,005 | — | 42,402 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 30,343 | $ | — | $ | 30,628 | $ | — | $ | 60,971 | ||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||
Statement of Cash Flows | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (19,240 | ) | $ | 110,802 | $ | 38,422 | $ | — | $ | 129,984 | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Investment in multi-client data library | — | (133,207 | ) | (10,575 | ) | — | (143,782 | ) | ||||||||||||
Purchase of property, plant, equipment and seismic rental equipment | (1,564 | ) | (4,663 | ) | (4,833 | ) | — | (11,060 | ) | |||||||||||
Maturity (net purchases) of short-term investments | (20,000 | ) | — | — | — | (20,000 | ) | |||||||||||||
Investment in convertible notes | (6,500 | ) | — | — | — | (6,500 | ) | |||||||||||||
Capital contribution to affiliate | — | (750 | ) | — | 750 | — | ||||||||||||||
Other investing activities | (137 | ) | — | (143 | ) | — | (280 | ) | ||||||||||||
Net cash used in investing activities | (28,201 | ) | (138,620 | ) | (15,551 | ) | 750 | (181,622 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Payments on notes payable and long-term debt | (4,000 | ) | (1,535 | ) | (610 | ) | — | (6,145 | ) | |||||||||||
Capital contribution from affiliate | — | — | 750 | (750 | ) | — | ||||||||||||||
Intercompany lending | (7,387 | ) | 29,353 | (21,966 | ) | — | ||||||||||||||
Payment of preferred dividends | (1,352 | ) | — | — | — | (1,352 | ) | |||||||||||||
Proceeds from employee stock purchases and exercise of stock options | 13,105 | — | — | — | 13,105 | |||||||||||||||
Excess tax benefit from stock-based compensation | 3,294 | — | — | — | 3,294 | |||||||||||||||
Contribution from noncontrolling interests | — | — | 961 | — | 961 | |||||||||||||||
Other financing activities | (59 | ) | — | — | — | (59 | ) | |||||||||||||
Net cash provided by (used in) financing activities | 3,601 | 27,818 | (20,865 | ) | (750 | ) | 9,804 | |||||||||||||
Effect of change in foreign currency exchange rates on cash and cash equivalents | (15 | ) | — | (168 | ) | (183 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (43,855 | ) | — | 1,838 | — | (42,017 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | 65,252 | — | 19,167 | 84,419 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 21,397 | $ | — | $ | 21,005 | $ | — | $ | 42,402 | ||||||||||
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | |||||||||||||||
Valuation and Qualifying Accounts | ' | |||||||||||||||
SCHEDULE II | ||||||||||||||||
ION GEOPHYSICAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||
Year Ended December 31, 2011 | Balance at | Charged (Credited) to | Deductions | Balance at | ||||||||||||
Beginning of Year | Costs and Expenses | End of Year | ||||||||||||||
(In thousands) | ||||||||||||||||
Allowances for doubtful accounts | $ | 845 | $ | 597 | $ | (244 | ) | $ | 1,198 | |||||||
Warranty | 784 | 1,165 | (1,234 | ) | 715 | |||||||||||
Valuation allowance on deferred tax assets | 62,700 | 6,775 | — | 69,475 | ||||||||||||
Excess and obsolete inventory | 12,876 | 567 | (406 | ) | 13,037 | |||||||||||
Year Ended December 31, 2012 | Balance at | Charged (Credited) to | Deductions | Balance at | ||||||||||||
Beginning of Year | Costs and Expenses | End of Year | ||||||||||||||
(In thousands) | ||||||||||||||||
Allowances for doubtful accounts | $ | 1,198 | $ | 5,811 | $ | (298 | ) | $ | 6,711 | |||||||
Warranty | 715 | 1,258 | (932 | ) | 1,041 | |||||||||||
Valuation allowance on deferred tax assets | 69,475 | (6,214 | ) | — | 63,261 | |||||||||||
Excess and obsolete inventory | 13,037 | 1,326 | (124 | ) | 14,239 | |||||||||||
Year Ended December 31, 2013 | Balance at | Charged (Credited) to | Deductions | Balance at | ||||||||||||
Beginning of Year | Costs and Expenses | End of Year | ||||||||||||||
(In thousands) | ||||||||||||||||
Allowances for doubtful accounts | $ | 6,711 | $ | 12,040 | $ | (11,529 | ) | $ | 7,222 | |||||||
Warranty | 1,041 | 538 | (936 | ) | 643 | |||||||||||
Valuation allowance on deferred tax assets | 63,261 | 88,112 | (338 | ) | 151,035 | |||||||||||
Excess and obsolete inventory | 14,239 | 18,644 | (328 | ) | 32,555 | |||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
General Description and Principles of Consolidation | ' | |||||||
General Description and Principles of Consolidation | ||||||||
ION Geophysical Corporation and its subsidiaries offer a full suite of services and products for seismic data acquisition and processing. The consolidated financial statements include the accounts of ION Geophysical Corporation and its majority-owned subsidiaries (collectively referred to as the “Company” or “ION”). Intercompany balances and transactions have been eliminated. Certain reclassifications were made to previously reported amounts in the consolidated financial statements and notes thereto to make them consistent with the current presentation format. | ||||||||
Use of Estimates | ' | |||||||
Use of Estimates | ||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates are made at discrete points in time based on relevant market information. These estimates may be subjective in nature and involve uncertainties and matters of judgment and, therefore, cannot be determined with precision. Areas involving significant estimates include, but are not limited to, accounts and unbilled receivables, inventory valuation, sales forecasts related to multi-client data libraries, goodwill and intangible asset valuation and deferred taxes. Actual results could materially differ from those estimates. | ||||||||
Cash and Cash Equivalents | ' | |||||||
Cash and Cash Equivalents | ||||||||
The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. At December 31, 2013 and 2012, there was $0.7 million and $1.5 million, respectively, of short-term restricted cash used to secure standby and commercial letters of credit, which is included within Prepaid Expenses and Other Current Assets. | ||||||||
Accounts and Unbilled Receivables | ' | |||||||
Accounts and Unbilled Receivables | ||||||||
Accounts and unbilled receivables are recorded at cost, less the related allowance for doubtful accounts. The Company considers current information and events regarding the customers’ ability to repay their obligations, such as the length of time the receivable balance is outstanding, the customers’ credit worthiness and historical experience. Unbilled receivables relate to revenues recognized on multi-client surveys and imaging services on a proportionate basis and on licensing of multi-client data libraries for which invoices have not yet been presented to the customer. | ||||||||
Inventories | ' | |||||||
Inventories | ||||||||
Inventories are stated at the lower of cost (primarily first-in, first-out method) or market. The Company provides reserves for estimated obsolescence or excess inventory equal to the difference between cost of inventory and its estimated market value based upon assumptions about future demand for the Company’s products, market conditions and the risk of obsolescence driven by new product introductions. | ||||||||
Property, Plant, Equipment and Seismic Rental Equipment | ' | |||||||
Property, Plant, Equipment and Seismic Rental Equipment | ||||||||
Property, plant, equipment and seismic rental equipment are stated at cost. Depreciation expense is provided straight-line over the following estimated useful lives: | ||||||||
Years | ||||||||
Machinery and equipment | 7-Mar | |||||||
Buildings | 25-May | |||||||
Seismic rental equipment | 5-Mar | |||||||
Leased equipment and other | 10-Mar | |||||||
Expenditures for renewals and betterments are capitalized; repairs and maintenance are charged to expense as incurred. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the accounts and any gain or loss is reflected in operating expenses. | ||||||||
The Company evaluates the recoverability of long-lived assets, including property, plant, equipment and seismic rental equipment, when indicators of impairment exist, relying on a number of factors including operating results, business plans, economic projections and anticipated future cash flows. Impairment in the carrying value of an asset held for use is recognized whenever anticipated future cash flows (undiscounted) from an asset are estimated to be less than its carrying value. The amount of the impairment recognized is the difference between the carrying value of the asset and its fair value. | ||||||||
Multi-Client Data Library | ' | |||||||
Multi-Client Data Library | ||||||||
The multi-client data library consists of seismic surveys that are offered for licensing to customers on a non-exclusive basis. The capitalized costs include costs paid to third parties for the acquisition of data and related activities associated with the data creation activity and direct internal processing costs, such as salaries, benefits, computer-related expenses and other costs incurred for seismic data project design and management. For 2013, 2012 and 2011, the Company capitalized, as part of its multi-client data library, $2.1 million, $3.8 million and $2.4 million, respectively, of direct internal processing costs. At December 31, 2013 and 2012, multi-client data library costs and accumulated amortization consisted of the following (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Gross costs of multi-client data creation | $ | 786,061 | $ | 690,876 | ||||
Less accumulated amortization | (547,277 | ) | (460,561 | ) | ||||
Total | $ | 238,784 | $ | 230,315 | ||||
The Company’s method of amortizing the costs of an in-process multi-client data library (the period during which the seismic data is being acquired and/or processed, referred to as the “new venture” phase) consists of determining the percentage of actual revenue recognized to the total estimated revenues (which includes both revenues estimated to be realized during the new venture phase and estimated revenues from the licensing of the resulting “on-the-shelf” data survey) and multiplying that percentage by the total cost of the project (the sales forecast method). The Company considers a multi-client data survey to be complete when all work on the creation of the seismic data is finished and that data survey is available for licensing. Once a multi-client data survey is complete, the data survey is considered “on-the-shelf” and the Company’s method of amortization is then the greater of (i) the sales forecast method or (ii) the straight-line basis over a four-year period. The greater amount of amortization resulting from the sales forecast method or the straight-line amortization policy is applied on a cumulative basis at the individual survey level. Under this policy, the Company first records amortization using the sales forecast method. The cumulative amortization recorded for each survey is then compared with the cumulative straight-line amortization. The four-year period utilized in this cumulative comparison commences when the data survey is determined to be complete. 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. The Company has determined the amortization period of four years based upon its historical experience that indicates that the majority of its revenues from multi-client surveys are derived during the acquisition and processing phases and during four years subsequent to survey completion. | ||||||||
The Company estimates the ultimate revenue expected to be derived from a particular seismic data survey over its estimated useful economic life to determine the costs to amortize, if greater than straight-line amortization. That estimate is made by the Company at the project’s initiation. For a completed multi-client survey, the Company reviews the estimate quarterly. If during any such review, the Company determines that the ultimate revenue for a survey is expected to be materially more or less than the original estimate of ultimate revenue for such survey, the Company decreases or increases (as the case may be) the amortization rate attributable to the future revenue from such survey. In addition, in connection with such reviews, the Company evaluates the recoverability of the multi-client data library, and, if required under Accounting Standards Codification (“ASC”) 360-10 “Impairment and Disposal of Long-Lived Assets,” records an impairment charge with respect to such data. There were no significant impairment charges associated with the Company’s multi-client data library during 2012 and 2011. | ||||||||
Cost Method Investments | ' | |||||||
Cost Method Investments | ||||||||
Certain of the Company’s investments are accounted for under the cost method. The Company’s cost method investments that have quoted prices from active markets are classified as “available-for-sale” and revalued at each reporting date, with all unrealized gains or losses, net of taxes, included in accumulated other comprehensive income (outside of earnings) until realized or until such time that a decline in fair value below cost is deemed to be other-than-temporary. The Company’s cost method investments for which quoted market prices are not available are recorded at cost and reviewed periodically if there are events or changes in circumstances that may have a significant adverse effect on the fair value of the investments. | ||||||||
Equity Method Investments | ' | |||||||
Equity Method Investments | ||||||||
In accordance with ASC 810 “Consolidation,” the Company considered whether OceanGeo B.V. (formerly known as GeoRXT B.V.; “OceanGeo”) and INOVA Geophysical were variable interest entities and concluded that both entities are variable interest entities. The Company also concluded that it was not the primary beneficiary of either variable interest entity. As such, the Company did not consolidate either entity and continued to use the equity method of accounting for both entities through December 31, 2013. Under this method, an investment is carried at the acquisition cost, plus the Company’s equity in undistributed earnings or losses since acquisition, less distributions received. As provided by ASC 815 “Investments,” the Company accounts for its share of earnings in INOVA Geophysical on a one fiscal quarter lag basis and accounts for its interest in OceanGeo on a current basis. See further discussion regarding the Company’s equity method investment in INOVA Geophysical and OceanGeo at Note 3 “Equity Method Investments.” | ||||||||
Noncontrolling Interests | ' | |||||||
Noncontrolling Interests | ||||||||
The Company has both redeemable and non-redeemable noncontrolling interests. Non-redeemable noncontrolling interests in majority-owned affiliates are reported as a separate component of equity in “Noncontrolling interests” in the Consolidated Balance Sheets. Redeemable Noncontrolling Interests include noncontrolling ownership interests which provide the holders the rights, at certain times, to require the Company to acquire their ownership interest in those entities. These interests are not considered to be permanent equity and are reported in the mezzanine section of the Consolidated Balance Sheets at the greater of their carrying value or redemption value at the balance sheet date. Net income (loss) in the Consolidated Statements of Operations is attributable to both controlling and noncontrolling interests. | ||||||||
Goodwill and Other Intangible Assets | ' | |||||||
Goodwill and Other Intangible Assets | ||||||||
Goodwill is allocated to reporting units, which are either the operating segment or one reporting level below the operating segment. For purposes of performing the impairment test for goodwill as required by ASC 350 “Intangibles — Goodwill and Other,” (“ASC 350”) the Company established the following reporting units: Solutions, Software and Marine Systems. | ||||||||
In accordance with ASC 350, the Company is required to evaluate the carrying value of its goodwill at least annually for impairment, or more frequently if facts and circumstances indicate that it is more likely than not impairment has occurred. The Company formally evaluates the carrying value of its goodwill for impairment as of December 31 for each of its reporting units. The Company first performs a qualitative assessment by evaluating relevant events or circumstances to determine whether it is more likely than not that the fair value of a reporting unit exceeds its carrying amount. If the Company is unable to conclude qualitatively that it is more likely than not that a reporting unit’s fair value exceeds its carrying value, then it will use a two-step quantitative assessment of the fair value of a reporting unit. To determine the fair value of these reporting units, the Company uses a discounted future returns valuation model, which includes a variety of level 3 inputs. The key inputs for the model include the operational five-year forecast for the Company and the then-current market discount factor. Additionally, the Company compares the sum of the estimated fair values of the individual reporting units less consolidated debt to the Company’s overall market capitalization as reflected by the Company’s stock price. If the carrying value of a reporting unit that includes goodwill is determined to be more than the fair value of the reporting unit, there exists the possibility of impairment of goodwill. An impairment loss of goodwill is measured in two steps by first allocating the fair value of the reporting unit to net assets and liabilities including recorded and unrecorded intangible assets to determine the implied carrying value of goodwill. The next step is to measure the difference between the carrying value of goodwill and the implied carrying value of goodwill, and, if the implied carrying value of goodwill is less than the carrying value of goodwill, an impairment loss is recorded equal to the difference. See further discussion below at Note 7 “Goodwill.” | ||||||||
The intangible assets, other than goodwill, relate to customer relationships and intellectual property rights. The Company amortizes it’s intellectual property rights over the estimated periods of benefit (ranging from 4 to 5 years). The Company amortizes its customer relationship intangible assets on an accelerated basis over a 10- to 15-year period, using the undiscounted cash flows of the initial valuation models. The Company uses an accelerated basis as these intangible assets were initially valued using an income approach, with an attrition rate that resulted in a pattern of declining cash flows over a 10- to 15-year period. | ||||||||
Following the guidance of ASC 360 “Property, Plant and Equipment,” the Company reviews the carrying values of these intangible assets for impairment if events or changes in the facts and circumstances indicate that their carrying value may not be recoverable. Any impairment determined is recorded in the current period and is measured by comparing the fair value of the related asset to its carrying value. See further discussion below at Note 6 “Details of Selected Balance Sheet Accounts — Intangible Assets.” | ||||||||
Fair Value of Financial Instruments | ' | |||||||
Fair Value of Financial Instruments | ||||||||
The Company’s financial instruments include cash and cash equivalents, accounts and unbilled receivables, accounts payable, accrued multi-client data library royalties, investment in one convertible note from a privately owned U.S.-based technology company and long-term debt. The carrying amounts of cash and cash equivalents, short-term investments, accounts and unbilled receivables, accounts payable and accrued multi-client data library royalties approximate fair value due to the highly liquid nature of these instruments. The fair value of the long-term debt is calculated using a market approach based upon Level 3 inputs, including an estimated interest rate reflecting current market conditions. The Company performs a fair value analysis with respect to its investment in the convertible notes using a market approach based upon Level 3 inputs, including the terms and likelihood of an investment event and the time to conversion or repayment. | ||||||||
Revenue Recognition | ' | |||||||
Revenue Recognition | ||||||||
The Company derives revenue from the sale of (i) multi-client and proprietary surveys, licenses of “on-the-shelf” data libraries and imaging services within its Solutions segment; (ii) acquisition systems and other seismic equipment within its Systems segment; and (iii) navigation, survey and quality control software systems within its Software segment. All revenues of the Solutions segment and the services component of revenues for the Software segment are classified as services revenues. All other revenues are classified as product revenues. | ||||||||
Multi-Client and Proprietary Surveys, Data Libraries and Imaging Services — As multi-client surveys are being designed, acquired and/or processed (referred to as the “new venture” phase), the Company enters into non-exclusive licensing arrangements with its customers. License revenues from these new venture survey projects are recognized during the new venture phase as the seismic data is acquired and/or processed on a proportionate basis as work is performed. Under this method, the Company recognizes revenues based upon quantifiable measures of progress, such as kilometers acquired or days processed. Upon completion of a multi-client seismic survey, the seismic survey is considered “on-the-shelf,” and licenses to the survey data are granted to customers on a non-exclusive basis. Revenues on licenses of completed multi-client data surveys are recognized when (a) a signed final master geophysical data license agreement and accompanying supplemental license agreement are returned by the customer; (b) the purchase price for the license is fixed or determinable; (c) delivery or performance has occurred; (d) and no significant uncertainty exists as to the customer’s obligation, willingness or ability to pay. In limited situations, the Company has provided the customer with a right to exchange seismic data for another specific seismic data set. In these limited situations, the Company recognizes revenue at the earlier of the customer exercising its exchange right or the expiration of the customer’s exchange right. | ||||||||
The Company also performs seismic surveys under contracts to specific customers, whereby the seismic data is owned by those customers. Revenue is recognized as the seismic data is acquired and/or processed on a proportionate basis as work is performed. The Company uses quantifiable measures of progress consistent with its multi-client surveys. | ||||||||
Revenues from all imaging and other services are recognized when persuasive evidence of an arrangement exists, the price is fixed or determinable, and collectibility is reasonably assured. Revenues from contract services performed on a day-rate basis are recognized as the service is performed. | ||||||||
Acquisition Systems and Other Seismic Equipment — For the sales of acquisition systems and other seismic equipment, the Company follows the requirements of ASC 605-10 “Revenue Recognition” and recognizes revenue when (a) evidence of an arrangement exists; (b) the price to the customer is fixed and determinable; (c) collectibility is reasonably assured; and (d) the acquisition system or other seismic equipment is delivered to the customer and risk of ownership has passed to the customer, or, in the case in which a substantive customer-specified acceptance clause exists in the contract, the later of delivery or when the customer-specified acceptance is obtained. | ||||||||
Software — For the sales of navigation, survey and quality control software systems, the Company follows the requirements of ASC 985-605 “Software Revenue Recognition” (“ASC 985-605”). The Company recognizes revenue from sales of these software systems when (a) evidence of an arrangement exists; (b) the price to the customer is fixed and determinable; (c) collectibility is reasonably assured; and (d) the software is delivered to the customer and risk of ownership has passed to the customer, or, in the limited case in which a substantive customer-specified acceptance clause exists, the later of delivery or when the customer-specified acceptance is obtained. These arrangements generally include the Company providing related services, such as training courses, engineering services and annual software maintenance. The Company allocates revenue to each element of the arrangement based upon vendor-specific objective evidence (“VSOE”) of fair value of the element or, if VSOE is not available for the delivered element, the Company applies the residual method. | ||||||||
In addition to perpetual software licenses, the Company offers time-based software licenses. For time-based licenses, the Company recognizes revenue ratably over the contract term, which is generally two to five years. | ||||||||
Multiple-element Arrangements — When separate elements (such as an acquisition system, other seismic equipment and/or imaging services) are contained in a single sales arrangement, or in related arrangements with the same customer, the Company follows the requirements of ASC 605-25 “Accounting for Multiple-Element Revenue Arrangement” (“ASC 605-25”). The Company adopted this guidance as of January 1, 2010. Accordingly, the Company applied this guidance to transactions initiated or materially modified on or after January 1, 2010. The guidance does not apply to software sales accounted for under ASC 985-605. The Company also adopted, in the same period, guidance within ASC 985-605 that excludes from its scope revenue arrangements that include both tangible products and software elements, such that the tangible products contain both software and non-software components that function together to deliver the tangible product’s essential functionality. | ||||||||
This guidance requires that arrangement consideration be allocated at the inception of an arrangement to all deliverables using the relative selling price method. The Company allocates arrangement consideration to each deliverable qualifying as a separate unit of accounting in an arrangement based on its relative selling price. The Company determines its selling price using VSOE, if it exists, or otherwise third-party evidence (“TPE”). If neither VSOE nor TPE of selling price exists for a unit of accounting, the Company uses estimated selling price (“ESP”). The Company generally expects that it will not be able to establish TPE due to the nature of the markets in which the Company competes, and, as such, the Company typically will determine its selling price using VSOE or, if not available, ESP. VSOE is generally limited to the price charged when the same or similar product is sold on a standalone basis. If a product is seldom sold on a standalone basis, it is unlikely that the Company can determine VSOE for the product. | ||||||||
The objective of ESP is to determine the price at which the Company would transact if the product were sold by the Company on a standalone basis. The Company’s determination of ESP involves a weighting of several factors based on the specific facts and circumstances of the arrangement. Specifically, the Company considers the anticipated margin on the particular deliverable, the selling price and profit margin for similar products and the Company’s ongoing pricing strategy and policies. | ||||||||
The Company believes this guidance principally impacts its Systems segment. A typical arrangement within the Systems segment involves the sale of various products of the Company’s acquisition systems and other seismic equipment. Products under these arrangements are often delivered to the customer within the same period, but in certain situations, depending upon product availability and the customer’s delivery requirements, the products could be delivered to the customer at different times. In these situations, the Company considers its products to be separate units of accounting provided the delivered product has value to the customer on a standalone basis. The Company considers a deliverable to have standalone value if the product is sold separately by the Company or another vendor or could be resold by the customer. Further, the Company’s revenue arrangements generally do not include a general right of return relative to the delivered products. | ||||||||
Product Warranty — The Company generally warrants that its manufactured equipment will be free from defects in workmanship, materials and parts. Warranty periods generally range from 30 days to three years from the date of original purchase, depending on the product. The Company provides for estimated warranty as a charge to costs of sales at the time of sale. However, new information may become available, or circumstances (such as applicable laws and regulations) may change, thereby resulting in an increase or decrease in the amount required to be accrued for such matters (and therefore a decrease or increase in reported net income in the period of such change). In limited cases, the Company has provided indemnification of customers for potential intellectual property infringement claims relating to products sold. | ||||||||
Research, Development and Engineering | ' | |||||||
Research, Development and Engineering | ||||||||
Research, development and engineering costs primarily relate to activities that are designed to improve the quality of the subsurface image and overall acquisition economics of the Company’s customers. The costs associated with these activities are expensed as incurred. These costs include prototype material and field testing expenses, along with the related salaries and stock-based compensation, facility costs, consulting fees, tools and equipment usage and other miscellaneous expenses associated with these activities. | ||||||||
Stock-Based Compensation | ' | |||||||
Stock-Based Compensation | ||||||||
The Company accounts for stock-based compensation under the provisions of ASC 718, “Compensation – Stock Compensation” (“ASC 718”). The Company estimates the value of stock option awards on the date of grant using the Black-Scholes option pricing model. The determination of the fair value of stock-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of subjective variables. These variables include, but are not limited to, expected stock price volatility over the term of the awards, actual and projected employee stock option exercise behaviors, risk-free interest rate and expected dividends. The Company recognizes stock-based compensation on the straight-line basis over the service period of each award (generally the award’s vesting period). | ||||||||
Income Taxes | ' | |||||||
Income Taxes | ||||||||
Income taxes are accounted for under the liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, including operating loss and tax credit carry-forwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The Company records a valuation allowance when it is more likely than not that all or a portion of deferred tax assets will not be realized (see Note 11 “Income Taxes”). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | ||||||||
Comprehensive Net Income (Loss) | ' | |||||||
Comprehensive Net Income (Loss) | ||||||||
Comprehensive net income (loss) as shown in the Consolidated Statements of Comprehensive Income (Loss) and the balance in Accumulated Other Comprehensive Income (Loss) as shown in the Consolidated Balance Sheets as of December 31, 2013 and 2012, consist of foreign currency translation adjustments, equity interest in INOVA Geophysical’s accumulated other comprehensive income and unrealized gains or losses on available-for-sale securities. | ||||||||
Foreign Currency Gains and Losses | ' | |||||||
Foreign Currency Gains and Losses | ||||||||
Assets and liabilities of the Company’s subsidiaries operating outside the United States that have a functional currency other than the U.S. dollar have been translated to U.S. dollars using the exchange rate in effect at the balance sheet date. Results of foreign operations have been translated using the average exchange rate during the periods of operation. Resulting translation adjustments have been recorded as a component of Accumulated Other Comprehensive Income (Loss). Foreign currency transaction gains and losses are included in the Consolidated Statements of Operations in Other Income (Expense) as they occur. Total foreign currency transaction gains (losses) were $(1.1) million, $(1.9) million and $(1.7) million for 2013, 2012 and 2011, respectively. | ||||||||
Concentration of Foreign Sales Risk | ' | |||||||
Concentration of Foreign Sales Risk | ||||||||
The majority of the Company’s foreign sales are denominated in U.S. dollars. For 2013, 2012 and 2011, international sales comprised 73%, 69% and 66%, respectively, of total net revenues. Since 2008, global economic problems and uncertainties have generally increased in scope and nature. To the extent that world events or economic conditions negatively affect the Company’s future sales to customers in many regions of the world, as well as the collectability of the Company’s existing receivables, the Company’s future results of operations, liquidity and financial condition would be adversely affected. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Line Items] | ' | |||||||
Property, plant and equipment estimated useful lives | ' | |||||||
A summary of property, plant, equipment and seismic rental equipment is as follows (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Buildings | $ | 23,292 | $ | 15,126 | ||||
Machinery and equipment | 97,242 | 87,127 | ||||||
Seismic rental equipment | 8,649 | 10,895 | ||||||
Furniture and fixtures | 4,673 | 3,403 | ||||||
Other | 3,577 | 3,857 | ||||||
Total | 137,433 | 120,408 | ||||||
Less accumulated depreciation | (90,749 | ) | (86,636 | ) | ||||
Property, plant, equipment and seismic rental equipment, net | $ | 46,684 | $ | 33,772 | ||||
Multi-Client Data Library | ' | |||||||
At December 31, 2013 and 2012, multi-client data library costs and accumulated amortization consisted of the following (in thousands): | ||||||||
December 31, | ||||||||
2013 | 2012 | |||||||
Gross costs of multi-client data creation | $ | 786,061 | $ | 690,876 | ||||
Less accumulated amortization | (547,277 | ) | (460,561 | ) | ||||
Total | $ | 238,784 | $ | 230,315 | ||||
Estimated Useful Lives [Member] | ' | |||||||
Property, Plant and Equipment [Line Items] | ' | |||||||
Property, plant and equipment estimated useful lives | ' | |||||||
Property, plant, equipment and seismic rental equipment are stated at cost. Depreciation expense is provided straight-line over the following estimated useful lives: | ||||||||
Years | ||||||||
Machinery and equipment | 7-Mar | |||||||
Buildings | 25-May | |||||||
Seismic rental equipment | 5-Mar | |||||||
Leased equipment and other | 10-Mar |
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Segment Information | ' | |||||||||||
A summary of segment information is as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net revenues: | ||||||||||||
Solutions: | ||||||||||||
New Venture | $ | 154,578 | $ | 147,346 | $ | 98,335 | ||||||
Data Library | 111,998 | 88,085 | 76,332 | |||||||||
Total multi-client revenues | 266,576 | 235,431 | 174,667 | |||||||||
Data Processing | 120,808 | 115,834 | 88,783 | |||||||||
Total | $ | 387,384 | $ | 351,265 | $ | 263,450 | ||||||
Systems: | ||||||||||||
Towed Streamer | $ | 66,991 | $ | 77,769 | $ | 111,453 | ||||||
Ocean Bottom | 7,307 | 14,823 | 960 | |||||||||
Other | 48,134 | 39,404 | 40,591 | |||||||||
Total | $ | 122,432 | $ | 131,996 | $ | 153,004 | ||||||
Software: | ||||||||||||
Software Systems | $ | 35,418 | $ | 39,738 | $ | 36,031 | ||||||
Services | 3,933 | 3,318 | 2,136 | |||||||||
Total | $ | 39,351 | $ | 43,056 | $ | 38,167 | ||||||
Total | $ | 549,167 | $ | 526,317 | $ | 454,621 | ||||||
Gross profit: | ||||||||||||
Solutions | $ | 111,108 | $ | 132,950 | $ | 84,647 | ||||||
Systems | 19,999 | 50,790 | 61,109 | |||||||||
Software | 28,206 | 32,061 | 27,689 | |||||||||
Total | $ | 159,313 | $ | 215,801 | $ | 173,445 | ||||||
Gross margin: | ||||||||||||
Solutions | 29 | % | 38 | % | 32 | % | ||||||
Systems | 16 | % | 38 | % | 40 | % | ||||||
Software | 72 | % | 74 | % | 73 | % | ||||||
Total | 29 | % | 41 | % | 38 | % | ||||||
Income from operations: | ||||||||||||
Solutions | $ | 61,146 | $ | 88,589 | $ | 50,620 | ||||||
Systems | (9,957 | ) | 10,132 | 33,034 | ||||||||
Software | 23,602 | 28,129 | 24,463 | |||||||||
Corporate and other | (58,395 | ) | (52,323 | ) | (41,322 | ) | ||||||
Income from operations | 16,396 | 74,527 | 66,795 | |||||||||
Interest expense, net | (12,344 | ) | (5,265 | ) | (5,784 | ) | ||||||
Equity in earnings (losses) of investments | (42,320 | ) | 297 | (22,862 | ) | |||||||
Other income (expense) | (182,530 | ) | 17,124 | (3,447 | ) | |||||||
Income (loss) before income taxes | $ | (220,798 | ) | $ | 86,683 | $ | 34,702 | |||||
Schedule of Depreciation and Amortization by Segments | ' | |||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Depreciation and amortization (including multi-client data library): | ||||||||||||
Solutions | $ | 99,774 | $ | 98,342 | $ | 84,958 | ||||||
Systems | 2,665 | 4,185 | 3,229 | |||||||||
Software | 699 | 776 | 1,116 | |||||||||
Corporate and other | 1,736 | 1,979 | 1,931 | |||||||||
Total | $ | 104,874 | $ | 105,282 | $ | 91,234 | ||||||
Segment Reporting of Assets by Segments and Geographical Areas | ' | |||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Total assets: | ||||||||||||
Solutions | $ | 445,581 | $ | 438,663 | ||||||||
Systems | 139,074 | 156,484 | ||||||||||
Software | 45,343 | 45,948 | ||||||||||
Corporate and other | 234,673 | 179,488 | ||||||||||
Total | $ | 864,671 | $ | 820,583 | ||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Total assets by geographic area: | ||||||||||||
North America | $ | 609,739 | $ | 533,035 | ||||||||
Europe | 76,601 | 91,101 | ||||||||||
Middle East | 128,909 | 130,070 | ||||||||||
Latin America | 33,375 | 51,692 | ||||||||||
Other | 16,047 | 14,685 | ||||||||||
Total | $ | 864,671 | $ | 820,583 | ||||||||
Summary of net revenues by geographic area | ' | |||||||||||
A summary of net revenues by geographic area follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Europe | $ | 198,977 | $ | 200,589 | $ | 160,230 | ||||||
North America | 150,160 | 164,157 | 155,877 | |||||||||
Middle East | 63,157 | 37,471 | 28,227 | |||||||||
Asia Pacific | 52,672 | 55,028 | 78,777 | |||||||||
Latin America | 54,008 | 46,212 | 12,199 | |||||||||
Africa | 16,474 | 18,469 | 7,926 | |||||||||
Commonwealth of Independent States | 13,719 | 4,391 | 11,385 | |||||||||
Total | $ | 549,167 | $ | 526,317 | $ | 454,621 | ||||||
Equity_Method_Investments_Tabl
Equity Method Investments (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | ||||||||||||||
Summary of changes in equity method investments | ' | ||||||||||||||
The following table reflects the change in the Company’s equity method investments and note receivable from equity method investees during the year ended December 31, 2013 (in thousands): | |||||||||||||||
INOVA Geophysical | OceanGeo | Total | |||||||||||||
Investment at December 31, 2012 | $ | 73,925 | $ | — | $ | 73,925 | |||||||||
Investment in equity | — | 1,500 | 1,500 | ||||||||||||
Investment in and advances to OceanGeo | — | 23,255 | 23,255 | ||||||||||||
Equity in losses of investments | (22,487 | ) | (19,833 | ) | (42,320 | ) | |||||||||
Write-down of note receivable from OceanGeo | — | (2,122 | ) | (2,122 | ) | ||||||||||
Equity interest in investees' other comprehensive income (loss) | (373 | ) | — | (373 | ) | ||||||||||
Investments at December 31, 2013 | $ | 51,065 | $ | 2,800 | $ | 53,865 | |||||||||
Summary of unaudited financial information for INOVA Geophysical | ' | ||||||||||||||
The following table reflects summarized financial information for INOVA Geophysical, on a 100% basis, as of September 30, 2013 and 2012 and for Fiscal 2013, Fiscal 2012 and Fiscal 2011 (in thousands): | |||||||||||||||
September 30, | |||||||||||||||
2013 | 2012 | ||||||||||||||
Current assets | $ | 147,475 | $ | 138,401 | |||||||||||
Non-current assets | 71,551 | 101,280 | |||||||||||||
Current liabilities | 110,972 | 78,241 | |||||||||||||
Non-current liabilities | 2,731 | 9,290 | |||||||||||||
Equity | $ | 105,323 | $ | 152,150 | |||||||||||
Fiscal 2013 | Fiscal 2012 | Fiscal 2011 | |||||||||||||
Total net revenues | $ | 183,619 | $ | 188,336 | $ | 138,735 | |||||||||
Gross profit (loss) | $ | (1,988 | ) | (A) | $ | 39,320 | $ | 5,765 | (B) | ||||||
Income (loss) from operations | $ | (44,463 | ) | $ | 3,241 | $ | (41,836 | ) | |||||||
Net income (loss) | $ | (46,149 | ) | (A) | $ | 2,197 | $ | (46,033 | ) | ||||||
(A) | Includes approximately $36.5 million of restructuring and special items associated with the impairment of intangible assets, write-down of excess and obsolete inventory and rental equipment, and severance-related charges. In addition to the restructuring and special items impacting gross profit, net income (loss) was also impacted by $1.8 million of other restructuring and special items. | ||||||||||||||
(B) | Includes approximately $15.7 million of excess and obsolete inventory charges. | ||||||||||||||
The following table reflects summarized financial information for OceanGeo, on a 100% basis, as of and for the year ended December 31, 2013 (in thousands): | |||||||||||||||
December 31, 2013 | |||||||||||||||
Current assets | $ | 5,233 | |||||||||||||
Non-current assets | 27,101 | ||||||||||||||
Current liabilities(1) | 55,216 | ||||||||||||||
Non-current liabilities | 198 | ||||||||||||||
Equity | $ | (23,080 | ) | ||||||||||||
-1 | Includes payables to, notes from and advances from ION and Georadar that existed at December 31, 2013, but were converted to equity in January 2014. The payables to and notes from ION that were converted to equity totaled $10.9 million. The payables to and notes from Georadar that were converted to equity totaled $10.0 million. This balance also includes $15.3 million of advances made by ION to OceanGeo during the fourth quarter of 2013. | ||||||||||||||
Period from March 1, to | |||||||||||||||
31-Dec-13 | |||||||||||||||
Total net revenues | $ | 19,668 | |||||||||||||
Gross profit (loss) | $ | (22,918 | ) | ||||||||||||
Income (loss) from operations | $ | (40,443 | ) | ||||||||||||
Net income (loss) | $ | (42,391 | ) |
Longterm_Debt_and_Lease_Obliga1
Long-term Debt and Lease Obligations (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Obligations | ' | ||||||||
December 31, | |||||||||
Obligations (in thousands) | 2013 | 2012 | |||||||
Senior secured second-priority notes | $ | 175,000 | $ | — | |||||
Revolving line of credit | 35,000 | 97,250 | |||||||
Facility lease obligation | 1,501 | 2,334 | |||||||
Equipment capital leases | 8,651 | 5,744 | |||||||
Total | 220,152 | 105,328 | |||||||
Current portion of long-term debt and lease obligations | (5,906 | ) | (3,496 | ) | |||||
Non-current portion of long-term debt and lease obligations | $ | 214,246 | $ | 101,832 | |||||
Equipment capital leases | ' | ||||||||
A summary of future principal obligations under long-term debt and equipment capital lease obligations is as follows (in thousands): | |||||||||
Years Ended December 31, | Long-Term Debt | Capital Lease Obligations | |||||||
2014 | $ | 966 | $ | 4,940 | |||||
2015 | 35,535 | 2,923 | |||||||
2016 | — | 788 | |||||||
2017 | — | — | |||||||
2018 | 175,000 | — | |||||||
Total | $ | 211,501 | $ | 8,651 | |||||
Debt instrument redemption percentages | ' | ||||||||
On or after May 15, 2015, the Company may on one or more occasions redeem all or a part of the Notes at the redemption prices set forth below, plus accrued and unpaid interest and special interest, if any, on the Notes redeemed during the twelve-month period beginning on May 15th of the years indicated below: | |||||||||
Date | Percentage | ||||||||
2015 | 104.063 | % | |||||||
2016 | 102.031 | % | |||||||
2017 and thereafter | 100 | % |
Recovered_Sheet1
Net Income (Loss) Per Common Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Computation of basic and diluted net income (loss) per common share | ' | |||||||||||
The following table summarizes the computation of basic and diluted net income (loss) per common share (in thousands, except per share amounts): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net income (loss) applicable to common shares | $ | (251,874 | ) | $ | 61,963 | $ | 23,422 | |||||
Income impact of assumed Series D Preferred Stock conversion | — | 1,352 | — | |||||||||
Net income after assumed Series D Preferred Stock conversion | $ | (251,874 | ) | $ | 63,315 | $ | 23,422 | |||||
Weighted average number of common shares outstanding | 158,506 | 155,801 | 154,811 | |||||||||
Effect of dilutive stock awards | — | 899 | 1,279 | |||||||||
Effect of Series D Preferred Stock | — | 6,065 | — | |||||||||
Weighted average number of diluted common shares outstanding | 158,506 | 162,765 | 156,090 | |||||||||
Basic net income (loss) per share | $ | (1.59 | ) | $ | 0.4 | $ | 0.15 | |||||
Diluted net income (loss) per share | $ | (1.59 | ) | $ | 0.39 | $ | 0.15 | |||||
Details_of_Selected_Balance_Sh1
Details of Selected Balance Sheet Accounts (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||||||
Summary of accounts receivable | ' | |||||||||||
A summary of accounts receivable is as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Accounts receivable, principally trade | $ | 156,670 | $ | 133,847 | ||||||||
Less allowance for doubtful accounts | (7,222 | ) | (6,711 | ) | ||||||||
Accounts receivable, net | $ | 149,448 | $ | 127,136 | ||||||||
Summary of inventories | ' | |||||||||||
A summary of inventories is as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Raw materials and purchased subassemblies | $ | 54,168 | $ | 49,421 | ||||||||
Work-in-process | 2,297 | 8,613 | ||||||||||
Finished goods | 33,263 | 26,880 | ||||||||||
Reserve for excess and obsolete inventories | (32,555 | ) | (14,239 | ) | ||||||||
Total | $ | 57,173 | $ | 70,675 | ||||||||
Summary of property, plant, equipment and seismic rental equipment | ' | |||||||||||
A summary of property, plant, equipment and seismic rental equipment is as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Buildings | $ | 23,292 | $ | 15,126 | ||||||||
Machinery and equipment | 97,242 | 87,127 | ||||||||||
Seismic rental equipment | 8,649 | 10,895 | ||||||||||
Furniture and fixtures | 4,673 | 3,403 | ||||||||||
Other | 3,577 | 3,857 | ||||||||||
Total | 137,433 | 120,408 | ||||||||||
Less accumulated depreciation | (90,749 | ) | (86,636 | ) | ||||||||
Property, plant, equipment and seismic rental equipment, net | $ | 46,684 | $ | 33,772 | ||||||||
Summary of finite intangible assets, net | ' | |||||||||||
A summary of intangible assets, net, is as follows (in thousands): | ||||||||||||
31-Dec-13 | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Amount | Amortization | |||||||||||
Customer relationships | $ | 42,593 | $ | (31,880 | ) | $ | 10,713 | |||||
Intellectual property rights | 4,300 | (3,766 | ) | 534 | ||||||||
Total | $ | 46,893 | $ | (35,646 | ) | $ | 11,247 | |||||
31-Dec-12 | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Amount | Amortization | |||||||||||
Customer relationships | $ | 42,397 | $ | (28,909 | ) | $ | 13,488 | |||||
Intellectual property rights | 4,300 | (2,947 | ) | 1,353 | ||||||||
Total | $ | 46,697 | $ | (31,856 | ) | $ | 14,841 | |||||
Estimated future amortization expense | ' | |||||||||||
A summary of the estimated amortization expense for the next five years is as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | $ | 2,723 | ||||||||||
2015 | $ | 2,411 | ||||||||||
2016 | $ | 1,962 | ||||||||||
2017 | $ | 1,670 | ||||||||||
2018 | $ | 1,435 | ||||||||||
Summary of accrued expenses | ' | |||||||||||
A summary of other long-term liabilities is as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Accrual for loss contingency related to legal proceedings (Note 16) | $ | 193,327 | $ | — | ||||||||
Facility restructuring accrual | 4,837 | 5,642 | ||||||||||
Other | 12,438 | 2,489 | ||||||||||
Total | $ | 210,602 | $ | 8,131 | ||||||||
A summary of accrued expenses is as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Accrued multi-client data library acquisition costs | $ | 25,140 | $ | 47,678 | ||||||||
Compensation, including compensation-related taxes and commissions | 29,727 | 28,993 | ||||||||||
Deferred income tax liability | 11,967 | 20,556 | ||||||||||
Accrued legal contingency (A) | — | 10,000 | ||||||||||
Income tax payable | 5,845 | 8,348 | ||||||||||
Other | 11,679 | 8,520 | ||||||||||
Total | $ | 84,358 | $ | 124,095 | ||||||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||
Changes in the carrying amount of goodwill | ' | |||||||||||||||
The following is a summary of the changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 (in thousands): | ||||||||||||||||
Solutions | Software | Marine Systems | Total | |||||||||||||
Balance at January 1, 2012 | $ | 2,701 | $ | 24,278 | $ | 26,984 | $ | 53,963 | ||||||||
Purchase price adjustment | 242 | — | — | 242 | ||||||||||||
Impact of foreign currency translation adjustments | — | 1,144 | — | 1,144 | ||||||||||||
Balance at December 31, 2012 | 2,943 | 25,422 | 26,984 | 55,349 | ||||||||||||
Impact of foreign currency translation adjustments | — | 527 | — | 527 | ||||||||||||
Balance at December 31, 2013 | $ | 2,943 | $ | 25,949 | $ | 26,984 | $ | 55,876 | ||||||||
Stockholders_Equity_and_StockB1
Stockholders' Equity and Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Transactions under the stock option plans | ' | ||||||||||||||||
Transactions under the stock option plans are summarized as follows: | |||||||||||||||||
Option Price | Outstanding | Vested | Available | ||||||||||||||
per Share | for Grant | ||||||||||||||||
1-Jan-11 | 2.49-16.39 | 7,721,792 | 5,389,408 | 1,648,700 | |||||||||||||
Increase in shares authorized | — | — | — | 5,000,000 | |||||||||||||
Granted | 5.81-10.09 | 1,559,400 | — | (1,559,400 | ) | ||||||||||||
Vested | — | — | 851,222 | — | |||||||||||||
Exercised | 2.49-11.51 | (2,145,792 | ) | (2,145,792 | ) | — | |||||||||||
Cancelled/forfeited | 3.00-15.43 | (344,100 | ) | (250,300 | ) | 262,513 | |||||||||||
Restricted stock granted out of option plans | — | — | — | (651,661 | ) | ||||||||||||
Restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans | — | — | — | 93,488 | |||||||||||||
December 31, 2011 | 2.49-16.39 | 6,791,300 | 3,844,538 | 4,793,640 | |||||||||||||
Granted | 5.96-7.16 | 1,544,000 | — | (1,544,000 | ) | ||||||||||||
Vested | — | — | 1,060,275 | — | |||||||||||||
Exercised | 2.49-7.76 | (194,410 | ) | (194,410 | ) | — | |||||||||||
Cancelled/forfeited | 2.49-15.43 | (212,540 | ) | (119,165 | ) | 127,125 | |||||||||||
Restricted stock granted out of option plans | — | — | — | (667,000 | ) | ||||||||||||
Restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans | — | — | — | 229,163 | |||||||||||||
December 31, 2012 | $2.80-$16.39 | 7,928,350 | 4,591,238 | 2,938,928 | |||||||||||||
Increase in shares authorized | — | — | — | 3,730,000 | |||||||||||||
Plan Expiration | — | — | — | (79,250 | ) | ||||||||||||
Granted | 3.86-6.64 | 1,788,300 | — | (1,788,300 | ) | ||||||||||||
Vested | — | — | 1,055,412 | — | |||||||||||||
Exercised | 2.80-5.81 | (707,575 | ) | (707,575 | ) | — | |||||||||||
Cancelled/forfeited | 3.00-15.43 | (750,575 | ) | (353,600 | ) | 702,325 | |||||||||||
Restricted stock granted out of option plans | — | — | — | (714,950 | ) | ||||||||||||
Restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans | — | — | — | 232,700 | |||||||||||||
December 31, 2013 | $2.83-$16.39 | 8,258,500 | 4,585,475 | 5,021,453 | |||||||||||||
Summary of stock options outstanding | ' | ||||||||||||||||
Stock options outstanding at December 31, 2013 are summarized as follows: | |||||||||||||||||
Option Price per Share | Outstanding | Weighted Average Exercise Price of Outstanding Options | Weighted Average Remaining Contract Life | Vested | Weighted Average Exercise Price of Vested Options | ||||||||||||
$2.83 - $4.58 | 2,248,475 | $ | 3.69 | 8.4 years | 681,175 | $ | 3.27 | ||||||||||
$4.79 - $7.19 | 4,191,075 | $ | 6.26 | 7.6 years | 2,097,850 | $ | 6.34 | ||||||||||
$7.31 - $13.29 | 993,500 | $ | 9.32 | 2.3 years | 981,000 | $ | 9.31 | ||||||||||
$14.03 - $16.39 | 825,450 | $ | 15.26 | 4.1 years | 825,450 | $ | 15.26 | ||||||||||
Totals | 8,258,500 | $ | 6.83 | 6.8 years | 4,585,475 | $ | 8.12 | ||||||||||
Additional Information related to the Company's stock options | ' | ||||||||||||||||
Additional information related to the Company’s stock options is as follows: | |||||||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Grant Date Fair Value | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value (000’s) | |||||||||||||
Total outstanding at January 1, 2013 | 7,928,350 | $ | 7.19 | 6.9 years | |||||||||||||
Options granted | 1,788,300 | $ | 4.22 | $ | 2.52 | ||||||||||||
Options exercised | (707,575 | ) | $ | 3.57 | |||||||||||||
Options cancelled | (422,850 | ) | $ | 5.98 | |||||||||||||
Options forfeited | (327,725 | ) | $ | 9.54 | |||||||||||||
Total outstanding at December 31, 2013 | 8,258,500 | $ | 6.83 | 6.8 years | $ | 171 | |||||||||||
Options exercisable and vested at December 31, 2013 | 4,585,475 | $ | 8.12 | 5.1 years | $ | 171 | |||||||||||
Status of the Company's restricted stock and restricted stock unit awards | ' | ||||||||||||||||
The status of the Company’s restricted stock and restricted stock unit awards for 2013 is as follows: | |||||||||||||||||
Number of | |||||||||||||||||
Shares/Units | |||||||||||||||||
Total nonvested at January 1, 2013 | 1,033,447 | ||||||||||||||||
Granted | 714,950 | ||||||||||||||||
Vested | (578,369 | ) | |||||||||||||||
Forfeited | (117,620 | ) | |||||||||||||||
Total nonvested at December 31, 2013 | 1,052,408 | ||||||||||||||||
Assumptions used to calculate the fair value of option and SAR award on the grant date using the Black-Scholes option pricing model | ' | ||||||||||||||||
The Company calculated the fair value of each stock option on the date of grant using the Black-Scholes option pricing model. The following assumptions were used for each respective period: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Risk-free interest rates | 0.9% – 1.8% | 0.7% – 1.0% | 1.1% – 1.9% | ||||||||||||||
Expected lives (in years) | 5.5 | 5.5 | 5.5 | ||||||||||||||
Expected dividend yield | — | % | — | % | — | % | |||||||||||
Expected volatility | 62.1% – 70.6% | 67.8% – 72.2% | 65.9% – 80.2% | ||||||||||||||
Summary of stock-based compensation expense | ' | ||||||||||||||||
The following table summarizes stock-based compensation expense for the years ended December 31, 2013, 2012 and 2011 as follows (in thousands): | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Stock-based compensation expense | $ | 7,476 | $ | 6,598 | $ | 6,344 | |||||||||||
Tax benefit related thereto | (2,469 | ) | (2,056 | ) | (1,976 | ) | |||||||||||
Stock-based compensation expense, net of tax | $ | 5,007 | $ | 4,542 | $ | 4,368 | |||||||||||
Other_Income_Expense_Tables
Other Income (Expense) (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Other Income and Expenses [Abstract] | ' | ||||||||||||
Other Income (Expense) | ' | ||||||||||||
A summary of other income (expense) is as follows (in thousands): | |||||||||||||
Years Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Accrual for loss contingency related to legal proceedings (Note 16) | $ | (183,327 | ) | $ | (10,000 | ) | $ | — | |||||
Gain on sale of a cost method investment | 3,591 | — | — | ||||||||||
Gain on legal settlements (Note 16) | — | 30,895 | — | ||||||||||
Other income (expense) | (2,794 | ) | (3,771 | ) | (3,447 | ) | |||||||
Total other income (expense) | $ | (182,530 | ) | $ | 17,124 | $ | (3,447 | ) | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Sources of income (loss) before income taxes | ' | |||||||||||
The sources of income (loss) before income taxes are as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Domestic | $ | (221,185 | ) | $ | 34,633 | $ | 12,674 | |||||
Foreign | 387 | 52,050 | 22,028 | |||||||||
Total | $ | (220,798 | ) | $ | 86,683 | $ | 34,702 | |||||
Components of income taxes | ' | |||||||||||
Components of income taxes are as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Current: | ||||||||||||
Federal | $ | 4,113 | $ | 873 | $ | 6,594 | ||||||
State and local | 485 | 192 | 493 | |||||||||
Foreign | 16,278 | 19,106 | 11,180 | |||||||||
Deferred: | ||||||||||||
Federal | 4,012 | 3,822 | (4,893 | ) | ||||||||
Foreign | 832 | (136 | ) | (3,238 | ) | |||||||
Total income tax expense | $ | 25,720 | $ | 23,857 | $ | 10,136 | ||||||
Reconciliation of the expected income tax expense on income (loss) before income taxes using the statutory federal income tax | ' | |||||||||||
A reconciliation of the expected income tax expense on income (loss) before income taxes using the statutory federal income tax rate of 35% for 2013, 2012 and 2011 to income tax expense is as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Expected income tax expense (benefit) at 35% | $ | (77,279 | ) | $ | 30,339 | $ | 12,146 | |||||
Foreign tax rate differential | (2,348 | ) | (5,404 | ) | (7,858 | ) | ||||||
Foreign tax differences | 16,808 | 4,897 | (2,511 | ) | ||||||||
State and local taxes | 485 | 192 | 493 | |||||||||
Nondeductible expenses | (58 | ) | 47 | 1,091 | ||||||||
Valuation allowance: | ||||||||||||
Valuation allowance on equity in losses of INOVA Geophysical | 7,871 | (104 | ) | 8,002 | ||||||||
Valuation allowance on operations | 80,241 | (6,110 | ) | (1,227 | ) | |||||||
Total income tax expense | $ | 25,720 | $ | 23,857 | $ | 10,136 | ||||||
Tax effects of the cumulative temporary differences resulting in the net deferred income tax asset (liability) | ' | |||||||||||
The tax effects of the cumulative temporary differences resulting in the net deferred income tax asset (liability) are as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
Current deferred: | ||||||||||||
Deferred income tax assets: | ||||||||||||
Accrued expenses | $ | 5,898 | $ | 11,417 | ||||||||
Allowance accounts | 6,282 | 5,359 | ||||||||||
Total current deferred income tax asset | 12,180 | 16,776 | ||||||||||
Valuation allowance | (10,535 | ) | (10,454 | ) | ||||||||
Net current deferred income tax asset | 1,645 | 6,322 | ||||||||||
Deferred income tax liabilities: | ||||||||||||
Unbilled receivables | (13,516 | ) | (26,863 | ) | ||||||||
Total net current deferred income tax liability | $ | (11,871 | ) | $ | (20,541 | ) | ||||||
Non-current deferred: | ||||||||||||
Deferred income tax assets: | ||||||||||||
Net operating loss carryforward | $ | 9,043 | $ | 7,227 | ||||||||
Capital loss carryforward | 19,657 | 19,919 | ||||||||||
Equity method investment | 41,176 | 33,305 | ||||||||||
Cost method investments | — | 4,037 | ||||||||||
Basis in identified intangibles | 9,950 | 4,852 | ||||||||||
Basis in research and development | 3,733 | 3,196 | ||||||||||
Contingency accrual | 67,664 | — | ||||||||||
Tax credit carryforwards and other | 8,893 | 10,387 | ||||||||||
Total non-current deferred income tax asset | 160,116 | 82,923 | ||||||||||
Valuation allowance | (140,500 | ) | (52,807 | ) | ||||||||
Net non-current deferred income tax asset | 19,616 | 30,116 | ||||||||||
Deferred income tax liabilities: | ||||||||||||
Basis in property, plant and equipment | (5,457 | ) | (2,387 | ) | ||||||||
Total net non-current deferred income tax asset | $ | 14,159 | $ | 27,729 | ||||||||
Aggregate changes in gross amount of unrecognized tax benefits | ' | |||||||||||
During 2013, 2012 and 2011, the aggregate changes in the Company’s total gross amount of unrecognized tax benefits are summarized as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Beginning balance | $ | 1,834 | $ | 1,375 | $ | 816 | ||||||
Increases in unrecognized tax benefits – prior year positions | — | — | — | |||||||||
Increases in unrecognized tax benefits – current year positions | 385 | 459 | 559 | |||||||||
Ending balance | $ | 2,219 | $ | 1,834 | $ | 1,375 | ||||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information and Non-cash Activity (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||||||
Supplemental Cash Flow Information and Non-cash Activity | ' | |||||||||||
Supplemental disclosure of cash flow information is as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Cash paid during the period for: | ||||||||||||
Interest | $ | 9,576 | $ | 4,625 | $ | 6,440 | ||||||
Income taxes | 15,872 | 18,146 | 15,473 | |||||||||
Non-cash items from investing and financing activities: | ||||||||||||
Purchase of computer equipment financed through capital leases | 6,455 | 4,647 | 2,597 | |||||||||
Leasehold improvement paid by landlord | 5,000 | — | — | |||||||||
Conversion of the Company's investment in a convertible note to equity | 6,765 | — | — | |||||||||
Transfer of inventory to seismic rental equipment | 1,422 | 6,737 | 2,978 | |||||||||
Purchases of property, plant, and equipment and seismic rental equipment financed through accounts payable | 909 | — | — | |||||||||
Sale of rental equipment financed with a note receivable | 3,636 | — | 3,578 | |||||||||
Exchange of receivable related to a business acquisition | — | — | 2,000 | |||||||||
Reduction in multi-client data library related to finalization of accrued liabilities | — | — | 1,888 | |||||||||
Operating_Leases_Tables
Operating Leases (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Leases, Operating [Abstract] | ' | |||
Future rental commitments over the next five years under non-cancelable operating leases | ' | |||
A summary of future rental commitments over the next five years under non-cancelable operating leases is as follows (in thousands): | ||||
Years Ending December 31, | ||||
2014 | $ | 9,299 | ||
2015 | 9,042 | |||
2016 | 9,517 | |||
2017 | 9,319 | |||
2018 | 8,698 | |||
Total | $ | 45,875 | ||
Restructuring_Activities_Restr
Restructuring Activities Restructuring Activities (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | |||||||||||||||
Restructuring and Related Costs | ' | |||||||||||||||
During 2013, the Company recognized the following pre-tax charges related to its Systems segment restructuring activity: | ||||||||||||||||
Facility charges | Severance charges | Asset write-downs and other | Total | |||||||||||||
Cost of goods sold | $ | 647 | $ | 3,729 | $ | 21,351 | $ | 25,727 | ||||||||
Operating expenses | $ | — | $ | 1,873 | $ | 383 | $ | 2,256 | ||||||||
Consolidated total | $ | 647 | $ | 5,602 | $ | 21,734 | $ | 27,983 | ||||||||
Selected_Quarterly_Information1
Selected Quarterly Information (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Summary of selected quarterly information | ' | |||||||||||||||
A summary of selected quarterly information is as follows (in thousands, except per share amounts): | ||||||||||||||||
Three Months Ended | ||||||||||||||||
Year Ended December 31, 2013 | March 31 | June 30 | September 30 | December 31 | ||||||||||||
Service revenues | $ | 89,949 | $ | 89,603 | $ | 44,679 | $ | 167,086 | ||||||||
Product revenues | 39,788 | 31,312 | 35,159 | 51,591 | ||||||||||||
Total net revenues | 129,737 | 120,915 | 79,838 | 218,677 | ||||||||||||
Gross profit | 34,957 | 36,618 | (15,104 | ) | 102,842 | |||||||||||
Income (loss) from operations | 1,923 | 6,770 | (56,528 | ) | 64,231 | |||||||||||
Interest expense, net | (1,066 | ) | (2,756 | ) | (4,281 | ) | (4,241 | ) | ||||||||
Equity in earnings (losses) of investments | 1,116 | (6,338 | ) | (5,192 | ) | (31,906 | ) | |||||||||
Other income (expense) | 1,027 | (107,118 | ) | (74,301 | ) | (2,138 | ) | |||||||||
Income tax expense (benefit) | 1,201 | (38,705 | ) | 56,954 | 6,270 | |||||||||||
Net (income) loss attributable to noncontrolling interests | 76 | (59 | ) | 498 | 143 | |||||||||||
Preferred stock dividends | 338 | 338 | 5,338 | — | ||||||||||||
Net income (loss) applicable to common shares | $ | 1,537 | $ | (71,134 | ) | $ | (202,096 | ) | $ | 19,819 | ||||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 0.01 | $ | (0.45 | ) | $ | (1.29 | ) | $ | 0.12 | ||||||
Diluted | $ | 0.01 | $ | (0.45 | ) | $ | (1.29 | ) | $ | 0.12 | ||||||
Three Months Ended | ||||||||||||||||
Year Ended December 31, 2012 | March 31 | June 30 | September 30 | December 31 | ||||||||||||
Service revenues | $ | 66,634 | $ | 72,844 | $ | 93,023 | $ | 122,082 | ||||||||
Product revenues | 45,076 | 32,370 | 43,300 | 50,988 | ||||||||||||
Total net revenues | 111,710 | 105,214 | 136,323 | 173,070 | ||||||||||||
Gross profit | 41,156 | 45,943 | 55,958 | 72,744 | ||||||||||||
Income from operations | 11,643 | 12,972 | 25,049 | 24,863 | ||||||||||||
Interest expense, net | (1,518 | ) | (1,364 | ) | (1,237 | ) | (1,146 | ) | ||||||||
Equity in earnings (losses) of investments | 2,468 | 3,777 | (1,684 | ) | (4,264 | ) | ||||||||||
Other income (expense) | (686 | ) | 895 | (936 | ) | 17,851 | ||||||||||
Income tax expense | 3,445 | 4,184 | 6,037 | 10,191 | ||||||||||||
Net loss attributable to noncontrolling interests | 113 | 281 | 42 | 53 | ||||||||||||
Preferred stock dividends | 338 | 338 | 338 | 338 | ||||||||||||
Net income applicable to common shares | $ | 8,237 | $ | 12,039 | $ | 14,859 | $ | 26,828 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 0.05 | $ | 0.08 | $ | 0.1 | $ | 0.17 | ||||||||
Diluted | $ | 0.05 | $ | 0.08 | $ | 0.09 | $ | 0.17 | ||||||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||||||||||
Condensed Balance Sheet | ' | |||||||||||||||||||
This condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements and notes. | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Balance Sheet | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 124,701 | $ | — | $ | 23,355 | $ | — | $ | 148,056 | ||||||||||
Accounts receivable, net | 1,874 | 99,547 | 48,027 | — | 149,448 | |||||||||||||||
Unbilled receivables | — | 33,490 | 15,978 | — | 49,468 | |||||||||||||||
Inventories | — | 6,595 | 50,578 | — | 57,173 | |||||||||||||||
Prepaid expenses and other current assets | 12,888 | 5,030 | 7,438 | (584 | ) | 24,772 | ||||||||||||||
Total current assets | 139,463 | 144,662 | 145,376 | (584 | ) | 428,917 | ||||||||||||||
Deferred income tax asset | 6,513 | 6,960 | 489 | 688 | 14,650 | |||||||||||||||
Property, plant, equipment and seismic rental equipment, net | 6,440 | 29,845 | 10,399 | — | 46,684 | |||||||||||||||
Multi-client data library, net | — | 212,572 | 26,212 | — | 238,784 | |||||||||||||||
Equity method investments | 51,065 | — | 2,800 | — | 53,865 | |||||||||||||||
Investment in subsidiaries | 699,695 | 248,482 | — | (948,177 | ) | — | ||||||||||||||
Goodwill | — | 26,984 | 28,892 | — | 55,876 | |||||||||||||||
Intangible assets, net | — | 8,246 | 3,001 | — | 11,247 | |||||||||||||||
Intercompany receivables | 8,313 | 13,419 | — | (21,732 | ) | — | ||||||||||||||
Other assets | 14,315 | 56 | 24,262 | (23,985 | ) | 14,648 | ||||||||||||||
Total assets | $ | 925,804 | $ | 691,226 | $ | 241,431 | $ | (993,790 | ) | $ | 864,671 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Current maturities of long-term debt | $ | — | $ | 4,716 | $ | 1,190 | $ | — | $ | 5,906 | ||||||||||
Accounts payable | 3,515 | 11,741 | 7,364 | 34 | 22,654 | |||||||||||||||
Accrued expenses | 16,652 | 54,250 | 13,392 | 64 | 84,358 | |||||||||||||||
Accrued multi-client data library royalties | — | 45,921 | 539 | — | 46,460 | |||||||||||||||
Deferred revenue | — | 16,387 | 4,295 | — | 20,682 | |||||||||||||||
Total current liabilities | 20,167 | 133,015 | 26,780 | 98 | 180,060 | |||||||||||||||
Long-term debt, net of current maturities | 210,000 | 3,655 | 591 | — | 214,246 | |||||||||||||||
Intercompany payables | 426,134 | — | 21,732 | (447,866 | ) | — | ||||||||||||||
Other long-term liabilities | 11,757 | 214,211 | 8,637 | (24,003 | ) | 210,602 | ||||||||||||||
Total liabilities | 668,058 | 350,881 | 57,740 | (471,771 | ) | 604,908 | ||||||||||||||
Redeemable noncontrolling interests | — | — | 1,878 | — | 1,878 | |||||||||||||||
Stockholders’ equity: | ||||||||||||||||||||
Common stock | 1,637 | 290,460 | 19,138 | (309,598 | ) | 1,637 | ||||||||||||||
Additional paid-in capital | 879,969 | 180,700 | 235,381 | (416,081 | ) | 879,969 | ||||||||||||||
Accumulated earnings (deficit) | (606,157 | ) | 232,186 | (4,010 | ) | (228,176 | ) | (606,157 | ) | |||||||||||
Accumulated other comprehensive income (loss) | (11,138 | ) | 6,218 | (11,920 | ) | 5,702 | (11,138 | ) | ||||||||||||
Due from ION Geophysical Corporation | — | (369,219 | ) | (56,915 | ) | 426,134 | — | |||||||||||||
Treasury stock | (6,565 | ) | — | — | — | (6,565 | ) | |||||||||||||
Total stockholders’ equity | 257,746 | 340,345 | 181,674 | (522,019 | ) | 257,746 | ||||||||||||||
Noncontrolling interests | — | — | 139 | — | 139 | |||||||||||||||
Total equity | 257,746 | 340,345 | 181,813 | (522,019 | ) | 257,885 | ||||||||||||||
Total liabilities and equity | $ | 925,804 | $ | 691,226 | $ | 241,431 | $ | (993,790 | ) | $ | 864,671 | |||||||||
December 31, 2012 | ||||||||||||||||||||
Balance Sheet | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 30,343 | $ | — | $ | 30,628 | $ | — | $ | 60,971 | ||||||||||
Accounts receivable, net | 21,657 | 51,270 | 54,071 | 138 | 127,136 | |||||||||||||||
Unbilled receivables | — | 74,715 | 15,069 | — | 89,784 | |||||||||||||||
Inventories | — | 14,145 | 56,530 | — | 70,675 | |||||||||||||||
Prepaid expenses and other current assets | 7,258 | 7,079 | 13,723 | (2,455 | ) | 25,605 | ||||||||||||||
Total current assets | 59,258 | 147,209 | 170,021 | (2,317 | ) | 374,171 | ||||||||||||||
Deferred income tax asset | 16,747 | 6,167 | 151 | 5,349 | 28,414 | |||||||||||||||
Property, plant, equipment and seismic rental equipment, net | 4,048 | 19,118 | 10,595 | 11 | 33,772 | |||||||||||||||
Multi-client data library, net | — | 202,838 | 27,477 | — | 230,315 | |||||||||||||||
Equity method investments | 73,925 | — | — | — | 73,925 | |||||||||||||||
Investment in subsidiaries | 863,134 | 259,716 | — | (1,122,850 | ) | — | ||||||||||||||
Goodwill | — | 26,984 | 28,365 | — | 55,349 | |||||||||||||||
Intangible assets, net | — | 10,677 | 4,164 | — | 14,841 | |||||||||||||||
Intercompany receivables | 10,593 | — | 3,388 | (13,981 | ) | — | ||||||||||||||
Other assets | 9,501 | 122 | 30,173 | (30,000 | ) | 9,796 | ||||||||||||||
Total assets | $ | 1,037,206 | $ | 672,831 | $ | 274,334 | $ | (1,163,788 | ) | $ | 820,583 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Current maturities of long-term debt | $ | — | $ | 2,307 | $ | 1,189 | $ | — | $ | 3,496 | ||||||||||
Accounts payable | 3,734 | 13,568 | 11,386 | — | 28,688 | |||||||||||||||
Accrued expenses | 49,582 | 59,100 | 17,153 | (1,740 | ) | 124,095 | ||||||||||||||
Accrued multi-client data library royalties | — | 26,082 | 218 | — | 26,300 | |||||||||||||||
Deferred revenue | — | 19,863 | 7,036 | — | 26,899 | |||||||||||||||
Total current liabilities | 53,316 | 120,920 | 36,982 | (1,740 | ) | 209,478 | ||||||||||||||
Long-term debt, net of current maturities | 97,250 | 2,857 | 1,725 | — | 101,832 | |||||||||||||||
Intercompany payables | 375,768 | 13,981 | — | (389,749 | ) | — | ||||||||||||||
Other long-term liabilities | 12,387 | 20,000 | 961 | (25,217 | ) | 8,131 | ||||||||||||||
Total liabilities | 538,721 | 157,758 | 39,668 | (416,706 | ) | 319,441 | ||||||||||||||
Redeemable noncontrolling interests | — | — | 2,123 | — | 2,123 | |||||||||||||||
Stockholders’ equity: | ||||||||||||||||||||
Cumulative convertible preferred stock | 27,000 | — | — | — | 27,000 | |||||||||||||||
Common stock | 1,564 | 290,460 | 11,506 | (301,966 | ) | 1,564 | ||||||||||||||
Additional paid-in capital | 848,669 | 175,006 | 235,116 | (410,122 | ) | 848,669 | ||||||||||||||
Accumulated earnings (deficit) | (360,297 | ) | 400,932 | 16,732 | (417,664 | ) | (360,297 | ) | ||||||||||||
Accumulated other comprehensive income (loss) | (11,886 | ) | 5,639 | (12,541 | ) | 6,902 | (11,886 | ) | ||||||||||||
Due from ION Geophysical Corporation | — | (356,964 | ) | (18,804 | ) | 375,768 | — | |||||||||||||
Treasury stock | (6,565 | ) | — | — | — | (6,565 | ) | |||||||||||||
Total stockholders’ equity | 498,485 | 515,073 | 232,009 | (747,082 | ) | 498,485 | ||||||||||||||
Noncontrolling interests | — | — | 534 | — | 534 | |||||||||||||||
Total equity | 498,485 | 515,073 | 232,543 | (747,082 | ) | 499,019 | ||||||||||||||
Total liabilities and equity | $ | 1,037,206 | $ | 672,831 | $ | 274,334 | $ | (1,163,788 | ) | $ | 820,583 | |||||||||
Condensed Income Statement | ' | |||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Total net revenues | $ | — | $ | 337,570 | $ | 213,826 | $ | (2,229 | ) | $ | 549,167 | |||||||||
Cost of goods sold | — | 240,704 | 151,379 | (2,229 | ) | 389,854 | ||||||||||||||
Gross profit | — | 96,866 | 62,447 | — | 159,313 | |||||||||||||||
Total operating expenses | 35,054 | 62,028 | 45,835 | — | 142,917 | |||||||||||||||
Income (loss) from operations | (35,054 | ) | 34,838 | 16,612 | — | 16,396 | ||||||||||||||
Interest expense, net | (12,102 | ) | (49 | ) | (193 | ) | — | (12,344 | ) | |||||||||||
Intercompany interest, net | 411 | (1,374 | ) | 963 | — | — | ||||||||||||||
Equity in earnings (losses) of investments | (192,220 | ) | (19,755 | ) | (19,833 | ) | 189,488 | (42,320 | ) | |||||||||||
Other income (expense) | 12,166 | (193,289 | ) | (1,407 | ) | — | (182,530 | ) | ||||||||||||
Income (loss) before income taxes | (226,799 | ) | (179,629 | ) | (3,858 | ) | 189,488 | (220,798 | ) | |||||||||||
Income tax expense (benefit) | 19,061 | (10,883 | ) | 17,542 | — | 25,720 | ||||||||||||||
Net income (loss) | (245,860 | ) | (168,746 | ) | (21,400 | ) | 189,488 | (246,518 | ) | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 658 | — | 658 | |||||||||||||||
Net income (loss) attributable to ION | (245,860 | ) | (168,746 | ) | (20,742 | ) | 189,488 | (245,860 | ) | |||||||||||
Payment of preferred dividends and conversion payment | 6,014 | — | — | — | 6,014 | |||||||||||||||
Net income (loss) applicable to common shares | $ | (251,874 | ) | $ | (168,746 | ) | $ | (20,742 | ) | $ | 189,488 | $ | (251,874 | ) | ||||||
Comprehensive net income (loss) | $ | (245,112 | ) | $ | (168,167 | ) | $ | (20,779 | ) | $ | 188,288 | $ | (245,770 | ) | ||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 658 | — | 658 | |||||||||||||||
Comprehensive net income (loss) attributable to ION | $ | (245,112 | ) | $ | (168,167 | ) | $ | (20,121 | ) | $ | 188,288 | $ | (245,112 | ) | ||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Total net revenues | $ | — | $ | 311,758 | $ | 214,939 | $ | (380 | ) | $ | 526,317 | |||||||||
Cost of goods sold | — | 192,639 | 118,257 | (380 | ) | 310,516 | ||||||||||||||
Gross profit | — | 119,119 | 96,682 | — | 215,801 | |||||||||||||||
Total operating expenses | 35,982 | 61,315 | 43,977 | — | 141,274 | |||||||||||||||
Income (loss) from operations | (35,982 | ) | 57,804 | 52,705 | — | 74,527 | ||||||||||||||
Interest expense, net | (5,137 | ) | 198 | (326 | ) | — | (5,265 | ) | ||||||||||||
Intercompany interest, net | 232 | (629 | ) | 397 | — | — | ||||||||||||||
Equity in earnings (losses) of investments | 58,162 | 33,958 | — | (91,823 | ) | 297 | ||||||||||||||
Other income (expense) | 29,447 | (10,334 | ) | (1,989 | ) | — | 17,124 | |||||||||||||
Income (loss) before income taxes | 46,722 | 80,997 | 50,787 | (91,823 | ) | 86,683 | ||||||||||||||
Income tax expense (benefit) | (16,593 | ) | 21,771 | 18,679 | — | 23,857 | ||||||||||||||
Net income (loss) | 63,315 | 59,226 | 32,108 | (91,823 | ) | 62,826 | ||||||||||||||
Net loss attributable to noncontrolling interests | — | — | 489 | — | 489 | |||||||||||||||
Net income (loss) attributable to ION | 63,315 | 59,226 | 32,597 | (91,823 | ) | 63,315 | ||||||||||||||
Preferred stock dividends | 1,352 | — | — | — | 1,352 | |||||||||||||||
Net income (loss) applicable to common shares | $ | 61,963 | $ | 59,226 | $ | 32,597 | $ | (91,823 | ) | $ | 61,963 | |||||||||
Comprehensive net income (loss) | $ | 67,622 | $ | 62,085 | $ | 34,967 | $ | (97,541 | ) | $ | 67,133 | |||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 489 | — | 489 | |||||||||||||||
Comprehensive net income (loss) attributable to ION | $ | 67,622 | $ | 62,085 | $ | 35,456 | $ | (97,541 | ) | $ | 67,622 | |||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Total net revenues | $ | — | $ | 254,084 | $ | 201,320 | $ | (783 | ) | $ | 454,621 | |||||||||
Cost of goods sold | — | 163,349 | 118,248 | (421 | ) | 281,176 | ||||||||||||||
Gross profit | — | 90,735 | 83,072 | (362 | ) | 173,445 | ||||||||||||||
Total operating expenses | 26,504 | 44,205 | 36,303 | (362 | ) | 106,650 | ||||||||||||||
Income (loss) from operations | (26,504 | ) | 46,530 | 46,769 | — | 66,795 | ||||||||||||||
Interest expense, net | (5,804 | ) | 172 | (152 | ) | — | (5,784 | ) | ||||||||||||
Intercompany interest, net | 182 | (507 | ) | 325 | — | — | ||||||||||||||
Equity in earnings (losses) of investments | 44,051 | 38,931 | — | (105,844 | ) | (22,862 | ) | |||||||||||||
Other income (expense) | (1,278 | ) | (106 | ) | (2,063 | ) | — | (3,447 | ) | |||||||||||
Income (loss) before income taxes | 10,647 | 85,020 | 44,879 | (105,844 | ) | 34,702 | ||||||||||||||
Income tax expense (benefit) | (14,127 | ) | 16,076 | 8,187 | — | 10,136 | ||||||||||||||
Net income (loss) | 24,774 | 68,944 | 36,692 | (105,844 | ) | 24,566 | ||||||||||||||
Net loss attributable to noncontrolling interests | — | — | 208 | — | 208 | |||||||||||||||
Net income (loss) attributable to ION | 24,774 | 68,944 | 36,900 | (105,844 | ) | 24,774 | ||||||||||||||
Preferred stock dividends | 1,352 | — | — | — | 1,352 | |||||||||||||||
Net income (loss) applicable to common shares | $ | 23,422 | $ | 68,944 | $ | 36,900 | $ | (105,844 | ) | $ | 23,422 | |||||||||
Comprehensive net income (loss) | $ | 24,111 | $ | 68,909 | $ | 36,657 | $ | (105,774 | ) | $ | 23,903 | |||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 208 | — | 208 | |||||||||||||||
Comprehensive net income (loss) attributable to ION | $ | 24,111 | $ | 68,909 | $ | 36,865 | $ | (105,774 | ) | $ | 24,111 | |||||||||
Condensed Cash Flow Statement | ' | |||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Statement of Cash Flows | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (50,731 | ) | $ | 166,838 | $ | 31,480 | $ | — | $ | 147,587 | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Investment in multi-client data library | — | (111,689 | ) | (2,893 | ) | — | (114,582 | ) | ||||||||||||
Purchase of property, plant, equipment and seismic rental equipment | (2,075 | ) | (10,171 | ) | (4,668 | ) | — | (16,914 | ) | |||||||||||
Net advances to INOVA Geophysical | (5,000 | ) | — | — | — | (5,000 | ) | |||||||||||||
Investment in and advances to OceanGeo B.V. | — | — | (24,755 | ) | — | (24,755 | ) | |||||||||||||
Proceeds from sale of a cost method investment | 4,150 | — | — | — | 4,150 | |||||||||||||||
Investment in convertible notes | (2,000 | ) | — | — | — | (2,000 | ) | |||||||||||||
Capital contribution to affiliate | (5,695 | ) | (7,897 | ) | — | 13,592 | — | |||||||||||||
Other investing activities | — | 128 | — | — | 128 | |||||||||||||||
Net cash provided by (used in) investing activities | (10,620 | ) | (129,629 | ) | (32,316 | ) | 13,592 | (158,973 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from issuance of notes | 175,000 | — | — | — | 175,000 | |||||||||||||||
Payments under revolving line of credit | (97,250 | ) | — | — | — | (97,250 | ) | |||||||||||||
Borrowings under revolving line of credit | 35,000 | — | — | — | 35,000 | |||||||||||||||
Payments on notes payable and long-term debt | — | (3,249 | ) | (1,112 | ) | — | (4,361 | ) | ||||||||||||
Cost associated with issuance of notes | (6,773 | ) | — | — | — | (6,773 | ) | |||||||||||||
Capital contribution from affiliate | — | 5,695 | 7,897 | (13,592 | ) | — | ||||||||||||||
Intercompany lending | 52,646 | (39,655 | ) | (12,991 | ) | — | — | |||||||||||||
Payment of preferred dividends and conversion payment | (6,014 | ) | — | — | — | (6,014 | ) | |||||||||||||
Proceeds from employee stock purchases and exercise of stock options | 2,527 | — | — | — | 2,527 | |||||||||||||||
Excess tax benefit from stock-based compensation | 276 | — | — | — | 276 | |||||||||||||||
Contribution from noncontrolling interests | — | — | — | — | — | |||||||||||||||
Other financing activities | 297 | — | — | — | 297 | |||||||||||||||
Net cash provided by (used in) financing activities | 155,709 | (37,209 | ) | (6,206 | ) | (13,592 | ) | 98,702 | ||||||||||||
Effect of change in foreign currency exchange rates on cash and cash equivalents | — | — | (231 | ) | — | (231 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 94,358 | — | (7,273 | ) | — | 87,085 | ||||||||||||||
Cash and cash equivalents at beginning of period | 30,343 | — | 30,628 | — | 60,971 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 124,701 | $ | — | $ | 23,355 | $ | — | $ | 148,056 | ||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Statement of Cash Flows | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 19,362 | $ | 105,768 | $ | 43,951 | $ | — | $ | 169,081 | ||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Investment in multi-client data library | — | (121,424 | ) | (24,203 | ) | — | (145,627 | ) | ||||||||||||
Purchase of property, plant, equipment and seismic rental equipment | (2,485 | ) | (9,947 | ) | (4,218 | ) | — | (16,650 | ) | |||||||||||
Maturity (net purchases) of short-term investments | 20,000 | — | — | — | 20,000 | |||||||||||||||
Investment in convertible notes | (2,000 | ) | — | — | — | (2,000 | ) | |||||||||||||
Net cash provided by (used in) investing activities | 15,515 | (131,371 | ) | (28,421 | ) | — | (144,277 | ) | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Payments under revolving line of credit | (51,000 | ) | — | — | — | (51,000 | ) | |||||||||||||
Borrowings under revolving line of credit | 148,250 | — | — | — | 148,250 | |||||||||||||||
Payments on notes payable and long-term debt | (99,270 | ) | (1,626 | ) | (806 | ) | — | (101,702 | ) | |||||||||||
Intercompany lending | (21,699 | ) | 27,229 | (5,530 | ) | — | — | |||||||||||||
Payment of preferred dividends | (1,352 | ) | — | — | — | (1,352 | ) | |||||||||||||
Proceeds from employee stock purchases and exercise of stock options | 807 | — | — | — | 807 | |||||||||||||||
Excess tax benefit from stock-based compensation | 193 | — | — | — | 193 | |||||||||||||||
Contribution from noncontrolling interests | — | — | 212 | — | 212 | |||||||||||||||
Other financing activities | (1,862 | ) | — | — | — | (1,862 | ) | |||||||||||||
Net cash provided by (used in) financing activities | (25,933 | ) | 25,603 | (6,124 | ) | — | (6,454 | ) | ||||||||||||
Effect of change in foreign currency exchange rates on cash and cash equivalents | 2 | — | 217 | — | 219 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | 8,946 | — | 9,623 | — | 18,569 | |||||||||||||||
Cash and cash equivalents at beginning of period | 21,397 | — | 21,005 | — | 42,402 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 30,343 | $ | — | $ | 30,628 | $ | — | $ | 60,971 | ||||||||||
Year Ended December 31, 2011 | ||||||||||||||||||||
Statement of Cash Flows | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (19,240 | ) | $ | 110,802 | $ | 38,422 | $ | — | $ | 129,984 | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Investment in multi-client data library | — | (133,207 | ) | (10,575 | ) | — | (143,782 | ) | ||||||||||||
Purchase of property, plant, equipment and seismic rental equipment | (1,564 | ) | (4,663 | ) | (4,833 | ) | — | (11,060 | ) | |||||||||||
Maturity (net purchases) of short-term investments | (20,000 | ) | — | — | — | (20,000 | ) | |||||||||||||
Investment in convertible notes | (6,500 | ) | — | — | — | (6,500 | ) | |||||||||||||
Capital contribution to affiliate | — | (750 | ) | — | 750 | — | ||||||||||||||
Other investing activities | (137 | ) | — | (143 | ) | — | (280 | ) | ||||||||||||
Net cash used in investing activities | (28,201 | ) | (138,620 | ) | (15,551 | ) | 750 | (181,622 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Payments on notes payable and long-term debt | (4,000 | ) | (1,535 | ) | (610 | ) | — | (6,145 | ) | |||||||||||
Capital contribution from affiliate | — | — | 750 | (750 | ) | — | ||||||||||||||
Intercompany lending | (7,387 | ) | 29,353 | (21,966 | ) | — | ||||||||||||||
Payment of preferred dividends | (1,352 | ) | — | — | — | (1,352 | ) | |||||||||||||
Proceeds from employee stock purchases and exercise of stock options | 13,105 | — | — | — | 13,105 | |||||||||||||||
Excess tax benefit from stock-based compensation | 3,294 | — | — | — | 3,294 | |||||||||||||||
Contribution from noncontrolling interests | — | — | 961 | — | 961 | |||||||||||||||
Other financing activities | (59 | ) | — | — | — | (59 | ) | |||||||||||||
Net cash provided by (used in) financing activities | 3,601 | 27,818 | (20,865 | ) | (750 | ) | 9,804 | |||||||||||||
Effect of change in foreign currency exchange rates on cash and cash equivalents | (15 | ) | — | (168 | ) | (183 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | (43,855 | ) | — | 1,838 | — | (42,017 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | 65,252 | — | 19,167 | 84,419 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 21,397 | $ | — | $ | 21,005 | $ | — | $ | 42,402 | ||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Minimum [Member] | Machinery and equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment useful life, Minimum | '3 years |
Minimum [Member] | Buildings [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment useful life, Minimum | '5 years |
Minimum [Member] | Rental equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment useful life, Minimum | '3 years |
Minimum [Member] | Leased equipment and other [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment useful life, Minimum | '3 years |
Maximum [Member] | Machinery and equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment useful life, Minimum | '7 years |
Maximum [Member] | Buildings [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment useful life, Minimum | '25 years |
Maximum [Member] | Rental equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment useful life, Minimum | '5 years |
Maximum [Member] | Leased equipment and other [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, Plant and Equipment useful life, Minimum | '10 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 1) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Multi-client data creation | ' | ' |
Gross costs of multi-client data creation | $786,061 | $690,876 |
Less accumulated amortization | -547,277 | -460,561 |
Total | $238,784 | $230,315 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Percentage of equity method investment | 50.00% | ' | ' |
Summary of Significant Accounting Policies (Textual) [Abstract] | ' | ' | ' |
Short-term restricted cash | $700,000 | $1,500,000 | ' |
Multi-client data library capitalized income | 2,100,000 | 3,800,000 | 2,400,000 |
Multi-client data library impairment charges | ' | 0 | 0 |
Write-down of multi-client data library projects | 5,461,000 | 0 | 0 |
Foreign Currency Gains and Losses | ' | ' | ' |
Total foreign currency transaction gains (losses) | ($1,100,000) | ($1,900,000) | ($1,700,000) |
Concentration of Credit and Foreign Sales Risk | ' | ' | ' |
International sales comprised of total net revenue | 73.00% | 69.00% | 66.00% |
Maximum [Member] | ' | ' | ' |
Amortization of customer relationship intangible asset | '15 years | ' | ' |
Range of product warranty | '3 years | ' | ' |
Revenue Recognition | ' | ' | ' |
Time-based licenses, company recognizes revenue | '5 years | ' | ' |
Minimum [Member] | ' | ' | ' |
Amortization of customer relationship intangible asset | '10 years | ' | ' |
Range of product warranty | '30 days | ' | ' |
Revenue Recognition | ' | ' | ' |
Time-based licenses, company recognizes revenue | '2 years | ' | ' |
Copyrights [Member] | Maximum [Member] | ' | ' | ' |
Goodwill and Other Intangible Assets | ' | ' | ' |
Intangible assets other than goodwill, estimated period of benefit minimum | '5 years | ' | ' |
Copyrights [Member] | Minimum [Member] | ' | ' | ' |
Goodwill and Other Intangible Assets | ' | ' | ' |
Intangible assets other than goodwill, estimated period of benefit minimum | '4 years | ' | ' |
Machinery and equipment [Member] | Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '7 years | ' | ' |
Machinery and equipment [Member] | Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '3 years | ' | ' |
Buildings [Member] | Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '25 years | ' | ' |
Buildings [Member] | Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '5 years | ' | ' |
Equipment [Member] | Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '5 years | ' | ' |
Equipment [Member] | Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '3 years | ' | ' |
Other Machinery and Equipment [Member] | Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '10 years | ' | ' |
Other Machinery and Equipment [Member] | Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '3 years | ' | ' |
Segment_and_Geographic_Informa2
Segment and Geographic Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reclassified its previously reported results to reflect segment changes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $218,677 | $79,838 | $120,915 | $129,737 | $173,070 | $136,323 | $105,214 | $111,710 | $549,167 | $526,317 | $454,621 |
Gross profit | 102,842 | -15,104 | 36,618 | 34,957 | 72,744 | 55,958 | 45,943 | 41,156 | 159,313 | 215,801 | 173,445 |
Gross margin | ' | ' | ' | ' | ' | ' | ' | ' | 29.00% | 41.00% | 38.00% |
Income from operations | 64,231 | -56,528 | 6,770 | 1,923 | 24,863 | 25,049 | 12,972 | 11,643 | 16,396 | 74,527 | 66,795 |
Interest expense, net | -4,241 | -4,281 | -2,756 | -1,066 | -1,146 | -1,237 | -1,364 | -1,518 | -12,344 | -5,265 | -5,784 |
Equity in earnings (losses) of investments | -31,906 | -5,192 | -6,338 | 1,116 | -4,264 | -1,684 | 3,777 | 2,468 | -42,320 | 297 | -22,862 |
Other income (expense) | -2,138 | -74,301 | -107,118 | 1,027 | 17,851 | -936 | 895 | -686 | -182,530 | 17,124 | -3,447 |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -220,798 | 86,683 | 34,702 |
Solutions [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassified its previously reported results to reflect segment changes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 387,384 | 351,265 | 263,450 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 111,108 | 132,950 | 84,647 |
Gross margin | ' | ' | ' | ' | ' | ' | ' | ' | 29.00% | 38.00% | 32.00% |
Operating income loss before goodwill and intangible asset impairment | ' | ' | ' | ' | ' | ' | ' | ' | 61,146 | 88,589 | 50,620 |
Solutions [Member] | New Venture [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassified its previously reported results to reflect segment changes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 154,578 | 147,346 | 98,335 |
Solutions [Member] | Data Library [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassified its previously reported results to reflect segment changes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 111,998 | 88,085 | 76,332 |
Solutions [Member] | New Venture and Data Library [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassified its previously reported results to reflect segment changes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 266,576 | 235,431 | 174,667 |
Solutions [Member] | Data Processing [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassified its previously reported results to reflect segment changes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 120,808 | 115,834 | 88,783 |
Systems | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassified its previously reported results to reflect segment changes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 122,432 | 131,996 | 153,004 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 19,999 | 50,790 | 61,109 |
Gross margin | ' | ' | ' | ' | ' | ' | ' | ' | 16.00% | 38.00% | 40.00% |
Operating income loss before goodwill and intangible asset impairment | ' | ' | ' | ' | ' | ' | ' | ' | -9,957 | 10,132 | 33,034 |
Systems | Towed Streamer [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassified its previously reported results to reflect segment changes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 66,991 | 77,769 | 111,453 |
Systems | Ocean Bottom [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassified its previously reported results to reflect segment changes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 7,307 | 14,823 | 960 |
Systems | Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassified its previously reported results to reflect segment changes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 48,134 | 39,404 | 40,591 |
Software [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassified its previously reported results to reflect segment changes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 39,351 | 43,056 | 38,167 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 28,206 | 32,061 | 27,689 |
Gross margin | ' | ' | ' | ' | ' | ' | ' | ' | 72.00% | 74.00% | 73.00% |
Operating income loss before goodwill and intangible asset impairment | ' | ' | ' | ' | ' | ' | ' | ' | 23,602 | 28,129 | 24,463 |
Software [Member] | Software Systems [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassified its previously reported results to reflect segment changes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 35,418 | 39,738 | 36,031 |
Software [Member] | Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassified its previously reported results to reflect segment changes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 3,933 | 3,318 | 2,136 |
Corporate and Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassified its previously reported results to reflect segment changes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating income loss before goodwill and intangible asset impairment | ' | ' | ' | ' | ' | ' | ' | ' | -58,395 | -52,323 | -41,322 |
Legacy Land Systems (INOVA) [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Reclassified its previously reported results to reflect segment changes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 549,167 | 526,317 | 454,621 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 159,313 | 215,801 | 173,445 |
Income from operations | ' | ' | ' | ' | ' | ' | ' | ' | ' | $74,527 | $66,795 |
Segment_and_Geographic_Informa3
Segment and Geographic Information (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Depreciation and amortization | ' | ' | ' |
Total | $104,874 | $105,282 | $91,234 |
Solutions [Member] | ' | ' | ' |
Depreciation and amortization | ' | ' | ' |
Total | 99,774 | 98,342 | 84,958 |
Systems | ' | ' | ' |
Depreciation and amortization | ' | ' | ' |
Total | 2,665 | 4,185 | 3,229 |
Software [Member] | ' | ' | ' |
Depreciation and amortization | ' | ' | ' |
Total | 699 | 776 | 1,116 |
Corporate and Other [Member] | ' | ' | ' |
Depreciation and amortization | ' | ' | ' |
Total | $1,736 | $1,979 | $1,931 |
Segment_and_Geographic_Informa4
Segment and Geographic Information (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Segment Reporting of Assets by Segments and Geographical Areas | ' | ' |
Total assets | $864,671 | $820,583 |
North America [Member] | ' | ' |
Segment Reporting of Assets by Segments and Geographical Areas | ' | ' |
Total assets | 609,739 | 533,035 |
Europe [Member] | ' | ' |
Segment Reporting of Assets by Segments and Geographical Areas | ' | ' |
Total assets | 76,601 | 91,101 |
Middle East [Member] | ' | ' |
Segment Reporting of Assets by Segments and Geographical Areas | ' | ' |
Total assets | 128,909 | 130,070 |
Latin America [Member] | ' | ' |
Segment Reporting of Assets by Segments and Geographical Areas | ' | ' |
Total assets | 33,375 | 51,692 |
Other, Geographic Area [Member] | ' | ' |
Segment Reporting of Assets by Segments and Geographical Areas | ' | ' |
Total assets | 16,047 | 14,685 |
Solutions [Member] | ' | ' |
Segment Reporting of Assets by Segments and Geographical Areas | ' | ' |
Total assets | 445,581 | 438,663 |
Systems | ' | ' |
Segment Reporting of Assets by Segments and Geographical Areas | ' | ' |
Total assets | 139,074 | 156,484 |
Software [Member] | ' | ' |
Segment Reporting of Assets by Segments and Geographical Areas | ' | ' |
Total assets | 45,343 | 45,948 |
Corporate and Other [Member] | ' | ' |
Segment Reporting of Assets by Segments and Geographical Areas | ' | ' |
Total assets | $234,673 | $179,488 |
Segment_and_Geographic_Informa5
Segment and Geographic Information (Details 3) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Summary of net revenues by geographic area | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $218,677 | $79,838 | $120,915 | $129,737 | $173,070 | $136,323 | $105,214 | $111,710 | $549,167 | $526,317 | $454,621 |
Europe [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of net revenues by geographic area | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 198,977 | 200,589 | 160,230 |
North America [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of net revenues by geographic area | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 150,160 | 164,157 | 155,877 |
Asia Pacific [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of net revenues by geographic area | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 52,672 | 55,028 | 78,777 |
Latin America [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of net revenues by geographic area | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 54,008 | 46,212 | 12,199 |
Middle East [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of net revenues by geographic area | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 63,157 | 37,471 | 28,227 |
Africa [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of net revenues by geographic area | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 16,474 | 18,469 | 7,926 |
Commonwealth of Independent States [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of net revenues by geographic area | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | $13,719 | $4,391 | $11,385 |
Equity_Method_Investments_Chan
Equity Method Investments - Changes in Equity Method Investments (Details) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 |
INOVA Geophysical [Member] | OceanGeo [Member] | OceanGeo [Member] | OceanGeo [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment balance, beginning balance | ' | ' | ' | $73,925 | ' | ' | ' | ' | $73,925 | ' | ' | $73,925 | $0 | $0 | $0 |
Investment in equity | ' | ' | ' | ' | ' | ' | ' | ' | 1,500 | ' | ' | 0 | ' | ' | 1,500 |
Investment in and advances to OceanGeo | ' | ' | ' | ' | ' | ' | ' | ' | 23,255 | ' | ' | 0 | ' | ' | 23,255 |
Equity in earnings (losses) of investments | -31,906 | -5,192 | -6,338 | 1,116 | -4,264 | -1,684 | 3,777 | 2,468 | -42,320 | 297 | -22,862 | -22,487 | -12,500 | -7,400 | -19,833 |
Write-down of note receivable | ' | ' | ' | ' | ' | ' | ' | ' | -2,122 | ' | ' | 0 | ' | ' | -2,122 |
Equity interest in investees' other comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -373 | ' | ' | -373 | ' | ' | 0 |
Investment balance, ending balance | $53,865 | ' | ' | ' | $73,925 | ' | ' | ' | $53,865 | $73,925 | ' | $51,065 | $2,800 | $0 | $2,800 |
Equity_Method_Investments_Bala
Equity Method Investments - Balance Sheet Information (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 19, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | |
OceanGeo [Member] | OceanGeo [Member] | INOVA Geophysical [Member] | INOVA Geophysical [Member] | |||
Equity Method Investment Summarized Financial Information Balance Sheets | ' | ' | ' | ' | ' | |
Current assets | ' | $5,233,000 | ' | $147,475,000 | $138,401,000 | |
Non-current assets | ' | 27,101,000 | ' | 71,551,000 | 101,280,000 | |
Current liabilities | ' | 55,216,000 | [1] | ' | 110,972,000 | 78,241,000 |
Non-current liabilities | ' | 198,000 | ' | 2,731,000 | 9,290,000 | |
Equity | ' | -23,080,000 | ' | 105,323,000 | 152,150,000 | |
Payables and notes converted to equity | 10,900,000 | 10,000,000 | ' | ' | ' | |
Working capital loan to investee | ' | $15,300,000 | $8,000,000 | ' | ' | |
[1] | The payables to and notes from ION that were converted to equity totaled $10.9 million.The payables to and notes from Georadar that were converted to equity totaled $10.0 million.This balance also includes $15.3 million of advances made by ION to OceanGeo during the fourth quarter of 2013. |
Equity_Method_Investments_Inco
Equity Method Investments - Income Statement Information (Details) (USD $) | 10 Months Ended | 12 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
OceanGeo [Member] | INOVA Geophysical [Member] | INOVA Geophysical [Member] | INOVA Geophysical [Member] | |||
Equity Method Investment Summarized Financial Information Income Statements | ' | ' | ' | ' | ||
Total net revenues | $19,668,000 | $183,619,000 | $188,336,000 | $138,735,000 | ||
Gross profit (loss) | -22,918,000 | -1,988,000 | [1] | 39,320,000 | 5,765,000 | [2] |
Loss from operations | -40,443,000 | -44,463,000 | 3,241,000 | -41,836,000 | ||
Net loss | -42,391,000 | -46,149,000 | 2,197,000 | -46,033,000 | ||
Impact of restructuring and special items on gross profit | ' | 36,500,000 | ' | ' | ||
Impact of restructuring and special items on net income (loss) | ' | 1,800,000 | ' | ' | ||
Approximate Excess of Inventory Reserve Included in Gross Profit Loss | ' | ' | ' | $15,700,000 | ||
[1] | Includes approximately $36.5 million of restructuring and special items associated with the impairment of intangible assets, write-down of excess and obsolete inventory and rental equipment, and severance-related charges. In addition to the restructuring and special items impacting gross profit, net income (loss) was also impacted by $1.8 million of other restructuring and special items. | |||||
[2] | Includes approximately $15.7 million of excess and obsolete inventory charges. |
Equity_Method_Investments_Narr
Equity Method Investments - Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Oct. 31, 2013 | Feb. 19, 2013 | Dec. 31, 2012 | Jan. 27, 2014 | Oct. 31, 2013 | Jan. 27, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jan. 27, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Feb. 12, 2013 | Dec. 31, 2012 | Mar. 24, 2010 | |
OceanGeo [Member] | OceanGeo [Member] | OceanGeo [Member] | OceanGeo [Member] | OceanGeo [Member] | OceanGeo [Member] | OceanGeo [Member] | OceanGeo [Member] | OceanGeo [Member] | OceanGeo [Member] | OceanGeo [Member] | OceanGeo [Member] | OceanGeo [Member] | INOVA Geophysical [Member] | INOVA Geophysical [Member] | INOVA Geophysical [Member] | INOVA Geophysical [Member] | |||||||||||||
Subsequent Event [Member] | Optional Increase in Ownership [Member] | Optional Increase in Ownership [Member] | Notes Receivable [Member] | Notes Receivable [Member] | Notes Receivable [Member] | Equipment [Member] | Member | ||||||||||||||||||||||
Member | Subsequent Event [Member] | Subsequent Event [Member] | |||||||||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Investment in equity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of equity method investment | 50.00% | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' | ' | ' | ' | ' | ' | 30.00% | ' | ' | 70.00% | 70.00% | ' | ' | ' | ' | ' | ' | ' | 49.00% |
Working capital loan to investee | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,300,000 | ' | 15,300,000 | ' | 8,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Value of receivables due from related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | 2,800,000 | 2,100,000 | 3,000,000 | 7,000,000 | ' | ' | ' | ' |
Maximum advance capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Equity in earnings (losses) of investments | -31,906,000 | -5,192,000 | -6,338,000 | 1,116,000 | -4,264,000 | -1,684,000 | 3,777,000 | 2,468,000 | ' | -42,320,000 | 297,000 | -22,862,000 | -12,500,000 | -7,400,000 | -19,833,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -22,487,000 | ' | ' | ' |
Equity method investments | 53,865,000 | ' | ' | ' | 73,925,000 | ' | ' | ' | ' | 53,865,000 | 73,925,000 | ' | 2,800,000 | 0 | 2,800,000 | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | 51,065,000 | ' | 73,925,000 | ' |
Write-down of note receivable from OceanGeo | ' | ' | ' | ' | ' | ' | ' | ' | ($9,157,000) | ($9,157,000) | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ownership percentage by parent | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 51.00% | ' | ' |
Number of member appointed by related party | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' |
Number of member appointed by Company | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | 3 | ' | ' |
Longterm_Debt_and_Lease_Obliga2
Long-term Debt and Lease Obligations - Obligations (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Obligations | ' | ' |
Carrying value of long-term debt and lease obligations | $220,152 | $105,328 |
Current portion of long-term debt and lease obligations | -5,906 | -3,496 |
Non-current portion of long-term debt and lease obligations | 214,246 | 101,832 |
Senior Notes [Member] | ' | ' |
Obligations | ' | ' |
Carrying value of long-term debt and lease obligations | 175,000 | 0 |
Revolving Credit Facility [Member] | ' | ' |
Obligations | ' | ' |
Carrying value of long-term debt and lease obligations | 35,000 | 97,250 |
Facility Lease Obligation [Member] | ' | ' |
Obligations | ' | ' |
Carrying value of long-term debt and lease obligations | 1,501 | 2,334 |
Capital Lease Obligations [Member] | ' | ' |
Obligations | ' | ' |
Carrying value of long-term debt and lease obligations | $8,651 | $5,744 |
Longterm_Debt_and_Lease_Obliga3
Long-term Debt and Lease Obligations - Redemption Percentages for Future Periods (Details) | 12 Months Ended |
Dec. 31, 2013 | |
2015 | ' |
Debt Instrument, Redemption [Line Items] | ' |
Notes redemption percentages | 104.06% |
2016 | ' |
Debt Instrument, Redemption [Line Items] | ' |
Notes redemption percentages | 102.03% |
2017 and thereafter | ' |
Debt Instrument, Redemption [Line Items] | ' |
Notes redemption percentages | 100.00% |
Longterm_Debt_and_Lease_Obliga4
Long-term Debt and Lease Obligations - Narrative (Details) (USD $) | 1 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Mar. 31, 2010 | Jun. 30, 2005 | Dec. 31, 2013 | Dec. 31, 2001 | Dec. 31, 2012 | 29-May-12 | Dec. 31, 2013 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | 13-May-13 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | |
lease | First Amendment [Member] | Line of Credit Facility [Member] | Line of Credit Facility [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Eurodollar Borrowing [Member] | Eurodollar Borrowing [Member] | ||||||
China Merchants Bank Co. (CMB) [Member] | China Merchants Bank Co. (CMB) [Member] | Line of Credit Facility [Member] | Line of Credit Facility [Member] | ||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $175,000,000 | ' | ' | ' | ' |
Stated rate on debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.13% | ' | ' | ' | ' |
Revolving line of credit, maximum | ' | ' | ' | ' | ' | ' | 175,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding term loan indebtedness under Credit Facility | ' | ' | ' | ' | ' | 98,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument basis spread on variable rate under option one | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | ' | ' | ' | ' | ' | ' | 3.50% | 2.40% |
Debt instrument basis spread on variable rate under option two | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument basis spread on variable rate under option three | ' | ' | ' | ' | ' | ' | ' | 2.50% | 1.40% | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying value of long-term debt and lease obligations | ' | ' | 220,152,000 | ' | 105,328,000 | ' | ' | ' | ' | 175,000,000 | 0 | ' | ' | 35,000,000 | 97,250,000 | ' | ' |
Accrued interest rate on credit facility | ' | ' | 2.57% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed charge coverage ratio | ' | ' | 1.125 | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' | ' | ' | ' |
Leverage ratio | ' | ' | 3.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of tangible net worth for covenants compliance | 60.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease term, sale-leaseback transaction | ' | '12 years | ' | '12 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating lease term | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of lease arrangements | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment recorded under second lease | ' | ' | 5,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease obligation at implicit rate | ' | ' | 11.70% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Lease obligation amount outstanding | ' | ' | $1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extension period option of renewable leases | ' | ' | '20 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest accrues under the capital leases | ' | ' | 6.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Longterm_Debt_and_Lease_Obliga5
Long-term Debt and Lease Obligations - Equipment Capital Leases (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Capital Lease Obligations [Member] | ' |
Equipment Capital Leases | ' |
2014 | $4,940 |
2015 | 2,923 |
2016 | 788 |
2017 | 0 |
2018 | 0 |
Total | 8,651 |
Long-term Debt [Member] | ' |
Equipment Capital Leases | ' |
2014 | 966 |
2015 | 35,535 |
2016 | 0 |
2017 | 0 |
2018 | 175,000 |
Total | $211,501 |
Net_Income_Loss_per_Common_Sha1
Net Income (Loss) per Common Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Computation of basic and diluted net income (loss) per common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (loss) applicable to common shares | $19,819 | ($202,096) | ($71,134) | $1,537 | $26,828 | $14,859 | $12,039 | $8,237 | ($251,874) | $61,963 | $23,422 |
Weighted average number of common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 158,506 | 155,801 | 154,811 |
Weighted average number of diluted common shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | 158,506 | 162,765 | 156,090 |
Basic net income (loss) per share | $0.12 | ($1.29) | ($0.45) | $0.01 | $0.17 | $0.10 | $0.08 | $0.05 | ($1.59) | $0.40 | $0.15 |
Diluted net income (loss) per share | $0.12 | ($1.29) | ($0.45) | $0.01 | $0.17 | $0.09 | $0.08 | $0.05 | ($1.59) | $0.39 | $0.15 |
Stock Award One [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Computation of basic and diluted net income (loss) per common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect of dilutive stock awards | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 899 | 1,279 |
Stock Award Two [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Computation of basic and diluted net income (loss) per common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect of dilutive stock awards | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 6,065 | 0 |
Series D Preferred Stock [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Computation of basic and diluted net income (loss) per common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income impact of assumed Series D Preferred Stock conversion | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 1,352 | 0 |
Net income after assumed Series D Preferred Stock conversion | ' | ' | ' | ' | ' | ' | ' | ' | ($251,874) | $63,315 | $23,422 |
Recovered_Sheet2
Net Income (Loss )Per Common Share (Details Textual) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Net Income (Loss) Per Common Share (Textual) [Abstract] | ' | ' | ' |
Number of shares issuable under anti-dilutive options | 6,828,727 | 4,864,553 | 2,974,886 |
Number of outstanding shares of Series D Cumulative Convertible Preferred Stock | 27,000 | ' | ' |
Number of shares of common stock | 6,065,075 | ' | ' |
Details_of_Selected_Balance_Sh2
Details of Selected Balance Sheet Accounts - Accounts Receivable (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Accounts receivable, principally trade | $156,670 | $133,847 |
Less allowance for doubtful accounts | -7,222 | -6,711 |
Accounts receivable, net | $149,448 | $127,136 |
Details_of_Selected_Balance_Sh3
Details of Selected Balance Sheet Accounts - Inventories (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Inventory written off through scrap expense | ' | $1,100,000 | ' | ' |
Inventory obsolescence and excess inventory charges | ' | 21,197,000 | 1,326,000 | 567,000 |
Inventory write-down to a lower of cost of market value | 1,900,000 | ' | ' | ' |
Raw materials and purchased subassemblies | ' | 54,168,000 | 49,421,000 | ' |
Work-in-process | ' | 2,297,000 | 8,613,000 | ' |
Finished goods | ' | 33,263,000 | 26,880,000 | ' |
Reserve for excess and obsolete inventories | ' | -32,555,000 | -14,239,000 | ' |
Total | ' | 57,173,000 | 70,675,000 | ' |
Systems | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Write-down of excess and obsolete inventory | ' | 18,200,000 | ' | ' |
Other Expense | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Inventory obsolescence and excess inventory charges | ' | ' | $1,300,000 | $600,000 |
Details_of_Selected_Balance_Sh4
Details of Selected Balance Sheet Accounts - Property, Plant and Equipment (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant, equipment and seismic rental equipment | $137,433,000 | $120,408,000 | ' |
Less accumulated depreciation | -90,749,000 | -86,636,000 | ' |
Property, plant, equipment and seismic rental equipment net | 46,684,000 | 33,772,000 | ' |
Write-down of marine equipment | 0 | 5,928,000 | 0 |
Depreciation and amortization under capital leases | 14,800,000 | 12,500,000 | 9,400,000 |
Buildings [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant, equipment and seismic rental equipment | 23,292,000 | 15,126,000 | ' |
Machinery and equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant, equipment and seismic rental equipment | 97,242,000 | 87,127,000 | ' |
Seismic rental equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant, equipment and seismic rental equipment | 8,649,000 | 10,895,000 | ' |
Write-down of marine equipment | ' | 5,900,000 | ' |
Furniture and fixtures [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant, equipment and seismic rental equipment | 4,673,000 | 3,403,000 | ' |
Other [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property, plant, equipment and seismic rental equipment | $3,577,000 | $3,857,000 | ' |
Details_of_Selected_Balance_Sh5
Details of Selected Balance Sheet Accounts - Intangible Assets (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Summary of intangible assets, net | ' | ' | ' |
Gross Amount | $46,893,000 | $46,697,000 | ' |
Accumulated Amortization | -35,646,000 | -31,856,000 | ' |
Net | 11,247,000 | 14,841,000 | ' |
Amortization expenses | 3,800,000 | 3,900,000 | 4,500,000 |
Customer relationships [Member] | ' | ' | ' |
Summary of intangible assets, net | ' | ' | ' |
Gross Amount | 42,593,000 | 42,397,000 | ' |
Accumulated Amortization | -31,880,000 | -28,909,000 | ' |
Net | 10,713,000 | 13,488,000 | ' |
Intellectual property rights [Member] | ' | ' | ' |
Summary of intangible assets, net | ' | ' | ' |
Gross Amount | 4,300,000 | 4,300,000 | ' |
Accumulated Amortization | -3,766,000 | -2,947,000 | ' |
Net | $534,000 | $1,353,000 | ' |
Details_of_Selected_Balance_Sh6
Details of Selected Balance Sheet Accounts - Intangible Assets (Details 1) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Estimated future amortization expense | ' |
2014 | $2,723 |
2015 | 2,411 |
2016 | 1,962 |
2017 | 1,670 |
2018 | $1,435 |
Details_of_Selected_Balance_Sh7
Details of Selected Balance Sheet Accounts - Accrued Expenses (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Summary of accrued expenses | ' | ' |
Accrued multi-client data library acquisition costs | $25,140 | $47,678 |
Compensation, including compensation-related taxes and commissions | 29,727 | 28,993 |
Deferred income tax liability | 11,967 | 20,556 |
Accrued legal contingency | 0 | 10,000 |
Income tax payable | 5,845 | 8,348 |
Other | 11,679 | 8,520 |
Total accrued expenses | $84,358 | $124,095 |
Details_of_Selected_Balance_Sh8
Details of Selected Balance Sheet Accounts - Other Long-term Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Accrual for loss contingency related to legal proceedings (Note 16) | $193,327 | $0 |
Facility restructuring accrual | 4,837 | 5,642 |
Other | 12,438 | 2,489 |
Other long-term liabilities | $210,602 | $8,131 |
Goodwill_Details
Goodwill (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Changes in the carrying amount of goodwill | ' | ' |
Goodwill, balance beginning | $55,349 | $53,963 |
Purchase price adjustment | ' | 242 |
Impact of foreign currency translation adjustments | 527 | 1,144 |
Goodwill, balance ending | 55,876 | 55,349 |
Accrual for loss contingency related to legal proceedings | 193,327 | 0 |
Solutions [Member] | ' | ' |
Changes in the carrying amount of goodwill | ' | ' |
Goodwill, balance beginning | 2,943 | 2,701 |
Purchase price adjustment | ' | 242 |
Impact of foreign currency translation adjustments | 0 | 0 |
Goodwill, balance ending | 2,943 | 2,943 |
Software [Member] | ' | ' |
Changes in the carrying amount of goodwill | ' | ' |
Goodwill, balance beginning | 25,422 | 24,278 |
Purchase price adjustment | ' | 0 |
Impact of foreign currency translation adjustments | 527 | 1,144 |
Goodwill, balance ending | 25,949 | 25,422 |
Systems [Member] | ' | ' |
Changes in the carrying amount of goodwill | ' | ' |
Goodwill, balance beginning | 26,984 | 26,984 |
Purchase price adjustment | ' | 0 |
Impact of foreign currency translation adjustments | 0 | 0 |
Goodwill, balance ending | $26,984 | $26,984 |
Cumulative_Convertible_Preferr1
Cumulative Convertible Preferred Stock (Details Textual) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2005 | Dec. 31, 2013 | Dec. 31, 2005 | Apr. 08, 2010 | Dec. 31, 2005 | Jun. 30, 2012 | Dec. 31, 2007 | Jun. 30, 2012 | Apr. 08, 2010 | Dec. 31, 2008 | Feb. 28, 2008 | Sep. 30, 2013 | Jun. 30, 2012 | Apr. 08, 2010 | Dec. 31, 2013 | |
Series D Cumulative Convertible Preferred Stock [Member] | Series D Cumulative Convertible Preferred Stock [Member] | Series D-1 Cumulative Convertible Preferred Stock [Member] | Series D-1 Cumulative Convertible Preferred Stock [Member] | Series D-1 Cumulative Convertible Preferred Stock [Member] | Series D-2 Cumulative Convertible Preferred Stock [Member] | Series D-2 Cumulative Convertible Preferred Stock [Member] | Series D-3 Cumulative Convertible Preferred Stock [Member] | Series D-3 Cumulative Convertible Preferred Stock [Member] | Series D-3 Cumulative Convertible Preferred Stock [Member] | Series D Preferred Stock [Member] | Common Stock | Common Stock | Option One [Member] | |||||
Series D Cumulative Convertible Preferred Stock [Member] | ||||||||||||||||||
Cumulative Convertible Preferred Stock (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of preferred shares issued | ' | ' | ' | ' | ' | ' | ' | 30,000 | ' | 5,000 | ' | ' | ' | 35,000 | ' | ' | ' | ' |
Net proceeds received | ' | ' | ' | ' | ' | ' | ' | $29,800,000 | ' | $5,000,000 | ' | ' | $35,000,000 | ' | ' | ' | ' | ' |
Number of shares on which option to purchase additional shares under fletcher agreement | ' | ' | ' | 40,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of conversion, conversion trigger | ' | ' | ' | ' | ' | 122.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of conversion | ' | ' | ' | ' | ' | '122% of an average daily volume-weighted market price of the Company’s common stock over a trailing period of days at the time of issuance of that series | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Rate of dividend payable | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% |
Basis for preferred dividend rate | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread for preferred dividend rate | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum price of common stock under agreement | ' | ' | ' | $4.45 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum number of shares of common stock issued or issuable upon conversion or redemption of preferred stock | ' | ' | ' | ' | ' | 15,724,306 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of preferred shares converted to common stock | ' | ' | ' | ' | ' | ' | 8,000 | ' | ' | ' | ' | 35,000 | ' | ' | ' | ' | ' | ' |
Number of common stock shares issued after conversion | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,065,075 | 9,659,231 | ' |
Number of shares owned by fletcher Ltd. after conversion | 27,000 | ' | ' | ' | ' | ' | ' | ' | 22,000 | ' | 5,000 | ' | ' | ' | ' | ' | ' | ' |
Payment representing the estimated present value of certain future dividends | $5,000,000 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5,000,000 | ' | ' | ' |
Stockholders_Equity_and_StockB2
Stockholders' Equity and Stock-Based Compensation (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | |
Transactions under the stock option plans | ' | ' | ' | ' |
Weighted average exercise price, minimum, beginning balance | $2.80 | $2.49 | $2.49 | ' |
Weighted average exercise price, maximum, beginning balance | $16.39 | $16.39 | $16.39 | $16.39 |
Number of Shares, Beginning Balance | 7,928,350 | 6,791,300 | 7,721,792 | ' |
Vested, beginning balance | 4,591,238 | 3,844,538 | 5,389,408 | ' |
Available for Grant, beginning balance | 2,938,928 | 4,793,640 | 1,648,700 | ' |
Increase in shares authorized | 3,730,000 | ' | 5,000,000 | ' |
Plan Expiration | -79,250 | ' | ' | ' |
Granted minimum | $3.86 | $5.96 | $5.81 | ' |
Granted maximum | $6.64 | $7.16 | $10.09 | ' |
Available for Grant, Options Granted | 1,788,300 | 1,544,000 | 1,559,400 | ' |
Vested | 1,055,412 | 1,060,275 | 851,222 | ' |
Exercised, minimum | $2.80 | $2.49 | $2.49 | ' |
Exercised maximum | $5.81 | $7.76 | $11.51 | ' |
Exercise of stock options, shares | -707,575 | -194,410 | -2,145,792 | ' |
Cancelled/forfeited, minimum | $3 | $2.49 | $3 | ' |
Cancelled/forfeited, maximum | $15.43 | $15.43 | $15.43 | ' |
Cancelled/forfeited, Outstanding | -750,575 | -212,540 | -344,100 | ' |
Cancelled/forfeited, Vested | -353,600 | -119,165 | -250,300 | ' |
Cancelled/forfeited, Available for Grant | 702,325 | 127,125 | 262,513 | ' |
Restricted stock granted out of option plans | -714,950 | -667,000 | -651,661 | ' |
Restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans | 232,700 | 229,163 | 93,488 | ' |
Weighted average exercise price, minimum, Ending balance | $2.83 | $2.80 | $2.49 | ' |
Number of Shares, Ending Balance | 8,258,500 | 7,928,350 | 6,791,300 | ' |
Vested, ending balance | 4,585,475 | 4,591,238 | 3,844,538 | ' |
Available for Grant, ending balance | 5,021,453 | 2,938,928 | 4,793,640 | ' |
Stockholders_Equity_and_StockB3
Stockholders' Equity and Stock-Based Compensation (Details 1) (USD $) | 12 Months Ended |
Dec. 31, 2013 | |
Summary of stock options outstanding | ' |
Outstanding | 8,258,500 |
Weighted Average Exercise Price of Outstanding Options | $6.83 |
Weighted Average Remaining Contract Life | '6 years 10 months 2 days |
Vested | 4,585,475 |
Weighted Average Exercise Price of Vested Options | $8.12 |
$2.83 - $4.58 [Member] | ' |
Summary of stock options outstanding | ' |
Option price per share, minimum | $2.83 |
Option price per share, maximum | $4.58 |
Outstanding | 2,248,475 |
Weighted Average Exercise Price of Outstanding Options | $3.69 |
Weighted Average Remaining Contract Life | '8 years 5 months 5 days |
Vested | 681,175 |
Weighted Average Exercise Price of Vested Options | $3.27 |
$4.79 - $7.19 [Member] | ' |
Summary of stock options outstanding | ' |
Option price per share, minimum | $4.79 |
Option price per share, maximum | $7.19 |
Outstanding | 4,191,075 |
Weighted Average Exercise Price of Outstanding Options | $6.26 |
Weighted Average Remaining Contract Life | '7 years 7 months 10 days |
Vested | 2,097,850 |
Weighted Average Exercise Price of Vested Options | $6.34 |
$7.31 - $13.29 [Member] | ' |
Summary of stock options outstanding | ' |
Option price per share, minimum | $7.31 |
Option price per share, maximum | $13.29 |
Outstanding | 993,500 |
Weighted Average Exercise Price of Outstanding Options | $9.32 |
Weighted Average Remaining Contract Life | '2 years 3 months 26 days |
Vested | 981,000 |
Weighted Average Exercise Price of Vested Options | $9.31 |
$14.03 - $16.39 [Member] | ' |
Summary of stock options outstanding | ' |
Option price per share, minimum | $14.03 |
Option price per share, maximum | $16.39 |
Outstanding | 825,450 |
Weighted Average Exercise Price of Outstanding Options | $15.26 |
Weighted Average Remaining Contract Life | '4 years 26 days |
Vested | 825,450 |
Weighted Average Exercise Price of Vested Options | $15.26 |
Stockholders_Equity_and_StockB4
Stockholders' Equity and Stock-Based Compensation (Details 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Additional information related to the Company's stock options | ' | ' | ' |
Number of Shares, Beginning Balance | 7,928,350 | 6,791,300 | 7,721,792 |
Weighted average exercise price, beginning balance | $7.19 | ' | ' |
Available for Grant, Options Granted | 1,788,300 | 1,544,000 | 1,559,400 |
Weighted Average Exercise Price, Option granted | $4.22 | ' | ' |
Weighted average grant date fair value, Options granted | $2.52 | $3.54 | $4 |
Exercise of stock options, shares | -707,575 | -194,410 | -2,145,792 |
Weighted Average Exercise Price, Options exercised | $3.57 | ' | ' |
Number of Shares, Options cancelled | -422,850 | ' | ' |
Weighted Average Exercise Price, Options cancelled | $5.98 | ' | ' |
Number of Shares, Options forfeited | -327,725 | ' | ' |
Weighted Average Exercise Price, Options forfeited | $9.54 | ' | ' |
Number of Shares, Ending Balance | 8,258,500 | 7,928,350 | 6,791,300 |
Weighted Average Exercise Price, Ending Balance | $6.83 | $7.19 | ' |
Weighted Average Remaining Contractual Life, Beginning Balance | '6 years 9 months 18 days | '6 years 10 months 24 days | ' |
Weighted Average Remaining Contractual Life, Ending Balance | '6 years 9 months 18 days | '6 years 10 months 24 days | ' |
Aggregate Intrinsic Value, Ending Balance | $171,000 | ' | ' |
Number of Shares, Options exercisable and vested | 4,585,475 | ' | ' |
Weighted Average Exercise Price, Options exercisable and vested | $8.12 | ' | ' |
Weighted Average Remaining Contractual Life in Years, Options exercisable and vested | '5 years 1 month 2 days | ' | ' |
Aggregate Intrinsic Value, Options exercisable and vested | 171,000 | ' | ' |
Total intrinsic value of options exercised | 2,000,000 | 600,000 | 13,300,000 |
Cash received from option exercises | $2,500,000 | $800,000 | $13,100,000 |
Stockholders_Equity_and_StockB5
Stockholders' Equity and Stock-Based Compensation (Details 3) (Restricted stock and restricted stock unit [Member]) | 12 Months Ended |
Dec. 31, 2013 | |
Restricted stock and restricted stock unit [Member] | ' |
Status of the Company's restricted stock and restricted stock unit awards | ' |
Total nonvested, Beginning balance | 1,033,447 |
Granted | 714,950 |
Vested | -578,369 |
Forfeited | -117,620 |
Total nonvested, Ending balance | 1,052,408 |
Stockholders_Equity_and_StockB6
Stockholders' Equity and Stock-Based Compensation (Details 4) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' | ' |
Risk-free interest rates, minimum | 0.90% | 0.70% | 1.10% |
Risk-free interest rates, maximum | 1.80% | 1.00% | 1.90% |
Expected lives (in years) | '5 years 6 months | '5 years 6 months | '5 years 6 months |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility, minimum | 62.10% | 67.80% | 65.90% |
Expected volatility, maximum | 70.60% | 72.20% | 80.20% |
Stockholders_Equity_and_StockB7
Stockholders' Equity and Stock-Based Compensation Stockholders' Equity and Stock-Based Compensation (Details 5) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Equity [Abstract] | ' | ' | ' |
Stock-based compensation expense | $7,476 | $6,598 | $6,344 |
Tax benefit related thereto | -2,469 | -2,056 | -1,976 |
Stock-based compensation expense, net of tax | $5,007 | $4,542 | $4,368 |
Stockholders_Equity_and_Stock_
Stockholders' Equity and Stock Based Compensation (Details Textual) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Stockholders Equity and Stock Based Compensation (Textual) [Abstract] | ' | ' | ' | ' |
Shares outstanding options under the stock option plans | 8,258,500 | 7,928,350 | 6,791,300 | 7,721,792 |
Shares available for future grant and issuance | 5,021,453 | 2,938,928 | 4,793,640 | 1,648,700 |
Weighted average grant date fair value for stock option awards | $2.52 | $3.54 | $4 | ' |
Restricted stock and restricted stock unit [Member] | ' | ' | ' | ' |
Stockholders Equity and Stock Based Compensation (Textual) [Abstract] | ' | ' | ' | ' |
Intrinsic value of restricted stock and restricted stock unit awards | $3,500,000 | ' | ' | ' |
Weighted average grant date fair value for restricted stock and restricted stock unit awards | $4.08 | $6.05 | $6.34 | ' |
Total fair value of shares vested | 2,400,000 | 4,600,000 | 3,300,000 | ' |
Employee stock [Member] | ' | ' | ' | ' |
Stockholders Equity and Stock Based Compensation (Textual) [Abstract] | ' | ' | ' | ' |
Company recorded compensation expense approximately | 200,000 | 300,000 | 300,000 | ' |
Number of shares of common stock authorized and available for issuance under employee stock purchase program | 1,120,452 | ' | ' | ' |
Minimum payroll deductions at base compensation under employee stock purchase plan | 1.00% | ' | ' | ' |
Maximum payroll deductions at base compensation under employee stock purchase plan | 10.00% | ' | ' | ' |
Maximum purchase limit of shares for each participant per offering period | 500 | ' | ' | ' |
Maximum purchase limit of shares for each participant annually | 1,000 | ' | ' | ' |
Maximum purchase limit of shares on the basis of fair market value on offering date, for each participant in any calendar year | 10,000 | ' | ' | ' |
Purchase price of the common stock | 'lesser of 85% of the closing price on the first day of the applicable offering period (or most recently preceding trading day) or 85% of the closing price on the last day of the offering period | ' | ' | ' |
Purchase price of common stock, percentage of price | 85000.00% | ' | ' | ' |
Maximum number of shares of common stock purchased for each offering period | 100,000 | ' | ' | ' |
Maximum number of shares of common stock purchased for each offering period annually | 200,000 | ' | ' | ' |
Stock Appreciation Rights (SARs) [Member] | ' | ' | ' | ' |
Stockholders Equity and Stock Based Compensation (Textual) [Abstract] | ' | ' | ' | ' |
Company recorded compensation expense approximately | $100,000 | $100,000 | $300,000 | ' |
Percentage of fair market value of shares for calculation of exercise price SAR | 'not to be less than one hundred percent | ' | ' | ' |
Maximum term of SAR | '10 years | ' | ' | ' |
Number of vested and outstanding stock appreciation rights | 140,000 | ' | ' | ' |
Weighted average exercise price of stock appreciation rights awards | $3 | ' | ' | ' |
Number of individuals holding stock appreciation rights awards | 1 | ' | ' | ' |
Other_Income_Expense_Details
Other Income (Expense) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Income and Expenses [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accrual for loss contingency related to legal proceedings (Note 16) | ' | ' | ' | ' | ' | ' | ' | ' | ($183,327) | ($10,000) | $0 |
Gain on sale of a cost method investment | ' | ' | ' | ' | ' | ' | ' | ' | 3,591 | 0 | 0 |
Gain on legal settlements | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 30,895 | 0 |
Other income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | -2,794 | -3,771 | -3,447 |
Total other income (expense) | ($2,138) | ($74,301) | ($107,118) | $1,027 | $17,851 | ($936) | $895 | ($686) | ($182,530) | $17,124 | ($3,447) |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Sources of income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Domestic | ' | ' | ' | ' | ' | ' | ' | ' | ($221,185) | $34,633 | $12,674 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 387 | 52,050 | 22,028 |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -220,798 | 86,683 | 34,702 |
Current: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | 4,113 | 873 | 6,594 |
State and local | ' | ' | ' | ' | ' | ' | ' | ' | 485 | 192 | 493 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 16,278 | 19,106 | 11,180 |
Deferred: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal | ' | ' | ' | ' | ' | ' | ' | ' | 4,012 | 3,822 | -4,893 |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | 832 | -136 | -3,238 |
Income tax expense | $6,270 | $56,954 | ($38,705) | $1,201 | $10,191 | $6,037 | $4,184 | $3,445 | $25,720 | $23,857 | $10,136 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of the expected income tax expense on income (loss) before income taxes using the statutory federal income tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected income tax expense (benefit) at 35% | ' | ' | ' | ' | ' | ' | ' | ' | ($77,279) | $30,339 | $12,146 |
Foreign tax rate differential | ' | ' | ' | ' | ' | ' | ' | ' | -2,348 | -5,404 | -7,858 |
Foreign tax differences | ' | ' | ' | ' | ' | ' | ' | ' | 16,808 | 4,897 | -2,511 |
State and local taxes | ' | ' | ' | ' | ' | ' | ' | ' | 485 | 192 | 493 |
Nondeductible expenses | ' | ' | ' | ' | ' | ' | ' | ' | -58 | 47 | 1,091 |
Deferred tax asset valuation allowance: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred tax asset valuation allowance on equity in losses of INOVA Geophysical | ' | ' | ' | ' | ' | ' | ' | ' | 7,871 | -104 | 8,002 |
Deferred tax asset valuation allowance on operations | ' | ' | ' | ' | ' | ' | ' | ' | 80,241 | -6,110 | -1,227 |
Income tax expense | $6,270 | $56,954 | ($38,705) | $1,201 | $10,191 | $6,037 | $4,184 | $3,445 | $25,720 | $23,857 | $10,136 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred income tax assets: | ' | ' |
Accrued expenses | $5,898 | $11,417 |
Allowance accounts | 6,282 | 5,359 |
Total current deferred income tax asset | 12,180 | 16,776 |
Valuation allowance | -10,535 | -10,454 |
Net current deferred income tax asset | 1,645 | 6,322 |
Deferred income tax liabilities: | ' | ' |
Unbilled receivables | -13,516 | -26,863 |
Net current deferred income tax liability | -11,871 | -20,541 |
Deferred income tax assets: | ' | ' |
Net operating loss carryforward | 9,043 | 7,227 |
Capital loss carryforward | 19,657 | 19,919 |
Equity method investment | 41,176 | 33,305 |
Cost method investments | 0 | 4,037 |
Basis in identified intangibles | 9,950 | 4,852 |
Basis in research and development | 3,733 | 3,196 |
Contingency accrual | 67,664 | 0 |
Tax credit carryforwards and other | 8,893 | 10,387 |
Total non-current deferred income tax asset | 160,116 | 82,923 |
Valuation allowance | -140,500 | -52,807 |
Net non-current deferred income tax asset | 19,616 | 30,116 |
Deferred income tax liabilities: | ' | ' |
Basis in property, plant and equipment | -5,457 | -2,387 |
Net non-current deferred income tax asset | $14,159 | $27,729 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Beginning balance | $1,834 | $1,375 | $816 |
Increases in unrecognized tax benefits - prior year positions | 0 | 0 | 0 |
Increases in unrecognized tax benefits - current year positions | 385 | 459 | 559 |
Ending balance | $2,219 | $1,834 | $1,375 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' |
Statutory federal income tax rate | 35.00% | ' | ' | ' |
Unrecognized tax benefits | $2,219,000 | $1,834,000 | $1,375,000 | $816,000 |
Outside book-over-tax basis difference in its foreign subsidiaries | 43,100,000 | ' | ' | ' |
United States Tax Authority [Member] | ' | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' |
Net deferred tax asset | 3,700,000 | ' | ' | ' |
Foreign Tax Authority [Member] | ' | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' |
Net operating loss carry-forwards | $41,700,000 | ' | ' | ' |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information and Non-cash Activity (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Supplemental disclosure of cash flow information is as follows: | ' | ' | ' |
Interest paid | $9,576 | $4,625 | $6,440 |
Income taxes paid | 15,872 | 18,146 | 15,473 |
Non-cash items from investing and financing activities is as follows: | ' | ' | ' |
Purchase of computer equipment financed through capital leases | 6,455 | 4,647 | 2,597 |
Leasehold improvement paid by landlord | 5,000 | 0 | 0 |
Conversion of the Company's investment in a convertible note to equity | 6,765 | 0 | 0 |
Transfer of inventory to seismic rental equipment | 1,422 | 6,737 | 2,978 |
Purchases of property, plant, and equipment and seismic rental equipment financed through accounts payable | 909 | 0 | 0 |
Sale of rental equipment financed with a note receivables | 3,636 | 0 | 3,578 |
Exchange of receivable related to a business acquisition | 0 | 0 | 2,000 |
Reduction in multi-client data library related to finalization of accrued liabilities | $0 | $0 | $1,888 |
Operating_Leases_Details
Operating Leases (Details) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Future rental commitments over the next five years under non-cancelable operating leases | ' |
2014 | $9,299 |
2015 | 9,042 |
2016 | 9,517 |
2017 | 9,319 |
2018 | 8,698 |
Total | $45,875 |
Operating_Leases_Details_Textu
Operating Leases (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Operating Leases (Textual) [Abstract] | ' | ' | ' |
Operating leases, rent expense | $12.40 | $14.40 | $16.70 |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments - Narrative (Details) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | |||
Apr. 25, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | |
Convertible Debt Securities [Member] | Credit Facility Receivable [Member] | Credit Facility Receivable [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Credit Facility Receivable [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Principal amount of convertible note | ' | ' | ' | $6,500,000 | ' | ' | ' |
Interest rate on convertible note | ' | ' | ' | 4.00% | ' | ' | 0.25% |
Number of common shares note receivable converted into | 1,533,858 | ' | ' | ' | ' | ' | ' |
Post-conversion equity ownership percentage in investee | 16.00% | ' | ' | ' | ' | ' | ' |
Note and accrued interest, fair value | 6,500,000 | 4,200,000 | ' | ' | ' | ' | ' |
Note and accrued interest, carrying value | 7,000,000 | ' | ' | ' | ' | ' | ' |
Realized loss on convertible note prior to conversion | -500,000 | ' | ' | ' | ' | ' | ' |
Credit facility to investee | ' | ' | ' | ' | 4,000,000 | ' | ' |
Amount drawn on credit facility by investee | ' | ' | ' | ' | ' | 4,000,000 | ' |
Carrying value of long-term debt and lease obligations | ' | 220,152,000 | 105,328,000 | ' | ' | ' | ' |
Fair value of long-term debt | ' | $190,400,000 | $105,300,000 | ' | ' | ' | ' |
Benefit_Plans_Details_Textual
Benefit Plans (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Maximum contribution by employees as a percentage of their compensation to defined benefit plan | 'up to 60% of their compensation | ' | ' |
Maximum percentage of employee contributions | 60.00% | ' | ' |
Percentage of contribution made to defined benefit plan | 50.00% | ' | ' |
Component percent of first compensation contributed to defined benefit plan | 6.00% | ' | ' |
Company contributions to benefit plans | $1.70 | $1.40 | $1.30 |
Legal_Matters_Details
Legal Matters (Details) (USD $) | 1 Months Ended | 1 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | |||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2011 | Jun. 30, 2009 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Aug. 16, 2012 | Aug. 16, 2012 | Aug. 16, 2012 | Oct. 24, 2013 | Oct. 24, 2013 | Dec. 31, 2013 | 31-May-12 | |
WesternGeco [Member] | WesternGeco [Member] | WesternGeco [Member] | WesternGeco [Member] | WesternGeco [Member] | WesternGeco [Member] | WesternGeco [Member] | WesternGeco [Member] | WesternGeco [Member] | WesternGeco [Member] | Fletcher [Member] | Fletcher [Member] | |||
mi | Patent | Pending Litigation [Member] | Pending Litigation [Member] | Pending Litigation [Member] | Settled Litigation [Member] | Settled Litigation [Member] | ||||||||
Lost Profits [Member] | Lost Royalties [Member] | Lost Profits [Member] | ||||||||||||
Legal Matters (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of patent apparatus claims contained | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum distance from coast to make alleged activities not actionable under patent infringement law | ' | ' | 12 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total damages awarded | ' | ' | ' | ' | ' | ' | ' | $105,900,000 | $93,400,000 | $12,500,000 | $105,900,000 | $73,100,000 | $300,000 | ' |
Accrual for loss contingency related to legal proceedings | ' | ' | ' | ' | 120,000,000 | 120,000,000 | 10,000,000 | ' | ' | ' | ' | ' | ' | ' |
Accrual for loss contingency related to legal proceedings | 193,327,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Appeal bond cash collateral | 0.25 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount of promissory note | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 35,000,000 |
Amount paid to settle the case | $500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring_Activities_Detai
Restructuring Activities (Details Textual) (USD $) | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Inventory written off through scrap expense | ' | $1,100,000 | ' |
Inventory write-down to a lower of cost of market value | 1,900,000 | ' | ' |
Facility restructuring accrual | ' | 4,837,000 | 5,642,000 |
Systems | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | 27,983,000 | ' |
Cash expenditures | ' | 6,700,000 | ' |
Write-down of excess and obsolete inventory | ' | 18,200,000 | ' |
Percentage of headcount reduction | 31.00% | ' | ' |
Systems | Facility charges | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | 647,000 | ' |
Systems | Severance charges | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | 5,602,000 | ' |
Facility restructuring accrual | ' | 300,000 | ' |
Systems | Asset write-downs and other | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | 21,734,000 | ' |
Systems | Cost of goods sold | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | 25,727,000 | ' |
Systems | Cost of goods sold | Facility charges | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | 647,000 | ' |
Systems | Cost of goods sold | Severance charges | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | 3,729,000 | ' |
Systems | Cost of goods sold | Asset write-downs and other | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | 21,351,000 | ' |
Systems | Operating expenses | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | 2,256,000 | ' |
Systems | Operating expenses | Facility charges | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | 0 | ' |
Systems | Operating expenses | Severance charges | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | 1,873,000 | ' |
Systems | Operating expenses | Asset write-downs and other | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | ' | $383,000 | ' |
Selected_Quarterly_Information2
Selected Quarterly Information (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Summary of selected quarterly information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Service revenues | $167,086 | $44,679 | $89,603 | $89,949 | $122,082 | $93,023 | $72,844 | $66,634 | $391,317 | $354,583 | $265,586 |
Product revenues | 51,591 | 35,159 | 31,312 | 39,788 | 50,988 | 43,300 | 32,370 | 45,076 | 157,850 | 171,734 | 189,035 |
Revenues | 218,677 | 79,838 | 120,915 | 129,737 | 173,070 | 136,323 | 105,214 | 111,710 | 549,167 | 526,317 | 454,621 |
Gross profit | 102,842 | -15,104 | 36,618 | 34,957 | 72,744 | 55,958 | 45,943 | 41,156 | 159,313 | 215,801 | 173,445 |
Income from operations | 64,231 | -56,528 | 6,770 | 1,923 | 24,863 | 25,049 | 12,972 | 11,643 | 16,396 | 74,527 | 66,795 |
Interest expense, net | -4,241 | -4,281 | -2,756 | -1,066 | -1,146 | -1,237 | -1,364 | -1,518 | -12,344 | -5,265 | -5,784 |
Equity in earnings (losses) of investments | -31,906 | -5,192 | -6,338 | 1,116 | -4,264 | -1,684 | 3,777 | 2,468 | -42,320 | 297 | -22,862 |
Other income (expense) | -2,138 | -74,301 | -107,118 | 1,027 | 17,851 | -936 | 895 | -686 | -182,530 | 17,124 | -3,447 |
Income tax expense | 6,270 | 56,954 | -38,705 | 1,201 | 10,191 | 6,037 | 4,184 | 3,445 | 25,720 | 23,857 | 10,136 |
Net income attributable to noncontrolling interests | 143 | 498 | -59 | 76 | 53 | 42 | 281 | 113 | 658 | 489 | 208 |
Preferred stock dividends | 0 | 5,338 | 338 | 338 | 338 | 338 | 338 | 338 | 1,014 | 1,352 | 1,352 |
Net income (loss) applicable to common shares | $19,819 | ($202,096) | ($71,134) | $1,537 | $26,828 | $14,859 | $12,039 | $8,237 | ($251,874) | $61,963 | $23,422 |
Net income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic, in dollars per share | $0.12 | ($1.29) | ($0.45) | $0.01 | $0.17 | $0.10 | $0.08 | $0.05 | ($1.59) | $0.40 | $0.15 |
Diluted, in dollars per share | $0.12 | ($1.29) | ($0.45) | $0.01 | $0.17 | $0.09 | $0.08 | $0.05 | ($1.59) | $0.39 | $0.15 |
Certain_Relationships_and_Rela1
Certain Relationships and Related Party Transactions (Details Textual) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Jul. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 |
Majority Shareholder [Member] | Majority Shareholder [Member] | Majority Shareholder [Member] | Board of Directors Chairman [Member] | INOVA Geophysical [Member] | INOVA Geophysical [Member] | Manufacturing Facility [Member] | Rent and other pass through third party facilities charges [Member] | Rent and other pass through third party facilities charges [Member] | Rent and other pass through third party facilities charges [Member] | Other services [Member] | |||
Board of Directors Chairman [Member] | Board of Directors Chairman [Member] | Board of Directors Chairman [Member] | Board of Directors Chairman [Member] | ||||||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Related party transaction, revenues from transactions with related party | ' | ' | $8,000,000 | $13,700,000 | $34,500,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Receivables due from BGP | 1,500,000 | 1,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Company's outstanding common stock owned by BGP | ' | ' | 14.50% | ' | ' | 6.30% | ' | ' | ' | ' | ' | ' | ' |
Paid to related party for seismic acquisition services | ' | ' | 46,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Owed to related party for unpaid services | 1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Per month payment to third-party and lease costs incurred by the administrative support of INOVA Geophysical | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,100,000 | 6,300,000 | ' |
Payment for lease of commercial property | ' | ' | ' | ' | ' | 4,200,000 | ' | ' | 3,500,000 | 400,000 | ' | ' | 300,000 |
Value of receivables due from related party | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' |
Payments received on related party debt | ' | ' | ' | ' | ' | ' | $5,000,000 | ' | ' | ' | ' | ' | ' |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information - Narrative (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Carrying value of long-term debt and lease obligations | $220,152 | $105,328 |
Senior Notes [Member] | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' |
Carrying value of long-term debt and lease obligations | $175,000 | $0 |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Information - Condensed Balance Sheet (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | $148,056 | $60,971 | $42,402 | $84,419 |
Accounts receivable, net | 149,448 | 127,136 | ' | ' |
Unbilled receivables | 49,468 | 89,784 | ' | ' |
Inventories | 57,173 | 70,675 | ' | ' |
Prepaid expenses and other current assets | 24,772 | 25,605 | ' | ' |
Total current assets | 428,917 | 374,171 | ' | ' |
Deferred income tax asset | 14,650 | 28,414 | ' | ' |
Property, plant, equipment and seismic rental equipment, net | 46,684 | 33,772 | ' | ' |
Multi-client data library, net | 238,784 | 230,315 | ' | ' |
Equity method investments | 53,865 | 73,925 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Goodwill | 55,876 | 55,349 | 53,963 | ' |
Intangible assets, net | 11,247 | 14,841 | ' | ' |
Intercompany receivables | 0 | 0 | ' | ' |
Other assets | 14,648 | 9,796 | ' | ' |
Total assets | 864,671 | 820,583 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current maturities of long-term debt | 5,906 | 3,496 | ' | ' |
Accounts payable | 22,654 | 28,688 | ' | ' |
Accrued expenses | 84,358 | 124,095 | ' | ' |
Accrued multi-client data library royalties | 46,460 | 26,300 | ' | ' |
Deferred revenue | 20,682 | 26,899 | ' | ' |
Total current liabilities | 180,060 | 209,478 | ' | ' |
Non-current portion of long-term debt and lease obligations | 214,246 | 101,832 | ' | ' |
Intercompany payables | 0 | 0 | ' | ' |
Other long-term liabilities | 210,602 | 8,131 | ' | ' |
Total liabilities | 604,908 | 319,441 | ' | ' |
Redeemable noncontrolling interests | 1,878 | 2,123 | ' | ' |
Stockholders’ equity: | ' | ' | ' | ' |
Cumulative convertible preferred stock | 0 | 27,000 | ' | ' |
Common stock | 1,637 | 1,564 | ' | ' |
Additional paid-in capital | 879,969 | 848,669 | ' | ' |
Accumulated earnings (deficit) | -606,157 | -360,297 | ' | ' |
Accumulated other comprehensive income (loss) | -11,138 | -11,886 | ' | ' |
Intercompany receivable from ION | 0 | 0 | ' | ' |
Treasury stock | -6,565 | -6,565 | ' | ' |
Total stockholders’ equity | 257,746 | 498,485 | ' | ' |
Noncontrolling interests | 139 | 534 | ' | ' |
Total equity | 257,885 | 499,019 | 425,812 | 380,447 |
Total liabilities and equity | 864,671 | 820,583 | ' | ' |
Reportable Legal Entities [Member] | ION Geophysical Corporation [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 124,701 | 30,343 | 21,397 | 65,252 |
Accounts receivable, net | 1,874 | 21,657 | ' | ' |
Unbilled receivables | 0 | 0 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Prepaid expenses and other current assets | 12,888 | 7,258 | ' | ' |
Total current assets | 139,463 | 59,258 | ' | ' |
Deferred income tax asset | 6,513 | 16,747 | ' | ' |
Property, plant, equipment and seismic rental equipment, net | 6,440 | 4,048 | ' | ' |
Multi-client data library, net | 0 | 0 | ' | ' |
Equity method investments | 51,065 | 73,925 | ' | ' |
Investment in subsidiaries | 699,695 | 863,134 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Intangible assets, net | 0 | 0 | ' | ' |
Intercompany receivables | 8,313 | 10,593 | ' | ' |
Other assets | 14,315 | 9,501 | ' | ' |
Total assets | 925,804 | 1,037,206 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current maturities of long-term debt | 0 | 0 | ' | ' |
Accounts payable | 3,515 | 3,734 | ' | ' |
Accrued expenses | 16,652 | 49,582 | ' | ' |
Accrued multi-client data library royalties | 0 | 0 | ' | ' |
Deferred revenue | 0 | 0 | ' | ' |
Total current liabilities | 20,167 | 53,316 | ' | ' |
Non-current portion of long-term debt and lease obligations | 210,000 | 97,250 | ' | ' |
Intercompany payables | 426,134 | 375,768 | ' | ' |
Other long-term liabilities | 11,757 | 12,387 | ' | ' |
Total liabilities | 668,058 | 538,721 | ' | ' |
Redeemable noncontrolling interests | 0 | 0 | ' | ' |
Stockholders’ equity: | ' | ' | ' | ' |
Cumulative convertible preferred stock | ' | 27,000 | ' | ' |
Common stock | 1,637 | 1,564 | ' | ' |
Additional paid-in capital | 879,969 | 848,669 | ' | ' |
Accumulated earnings (deficit) | -606,157 | -360,297 | ' | ' |
Accumulated other comprehensive income (loss) | -11,138 | -11,886 | ' | ' |
Intercompany receivable from ION | 0 | 0 | ' | ' |
Treasury stock | -6,565 | -6,565 | ' | ' |
Total stockholders’ equity | 257,746 | 498,485 | ' | ' |
Noncontrolling interests | 0 | 0 | ' | ' |
Total equity | 257,746 | 498,485 | ' | ' |
Total liabilities and equity | 925,804 | 1,037,206 | ' | ' |
Reportable Legal Entities [Member] | The Guarantors [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 99,547 | 51,270 | ' | ' |
Unbilled receivables | 33,490 | 74,715 | ' | ' |
Inventories | 6,595 | 14,145 | ' | ' |
Prepaid expenses and other current assets | 5,030 | 7,079 | ' | ' |
Total current assets | 144,662 | 147,209 | ' | ' |
Deferred income tax asset | 6,960 | 6,167 | ' | ' |
Property, plant, equipment and seismic rental equipment, net | 29,845 | 19,118 | ' | ' |
Multi-client data library, net | 212,572 | 202,838 | ' | ' |
Equity method investments | 0 | 0 | ' | ' |
Investment in subsidiaries | 248,482 | 259,716 | ' | ' |
Goodwill | 26,984 | 26,984 | ' | ' |
Intangible assets, net | 8,246 | 10,677 | ' | ' |
Intercompany receivables | 13,419 | 0 | ' | ' |
Other assets | 56 | 122 | ' | ' |
Total assets | 691,226 | 672,831 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current maturities of long-term debt | 4,716 | 2,307 | ' | ' |
Accounts payable | 11,741 | 13,568 | ' | ' |
Accrued expenses | 54,250 | 59,100 | ' | ' |
Accrued multi-client data library royalties | 45,921 | 26,082 | ' | ' |
Deferred revenue | 16,387 | 19,863 | ' | ' |
Total current liabilities | 133,015 | 120,920 | ' | ' |
Non-current portion of long-term debt and lease obligations | 3,655 | 2,857 | ' | ' |
Intercompany payables | 0 | 13,981 | ' | ' |
Other long-term liabilities | 214,211 | 20,000 | ' | ' |
Total liabilities | 350,881 | 157,758 | ' | ' |
Redeemable noncontrolling interests | 0 | 0 | ' | ' |
Stockholders’ equity: | ' | ' | ' | ' |
Cumulative convertible preferred stock | ' | 0 | ' | ' |
Common stock | 290,460 | 290,460 | ' | ' |
Additional paid-in capital | 180,700 | 175,006 | ' | ' |
Accumulated earnings (deficit) | 232,186 | 400,932 | ' | ' |
Accumulated other comprehensive income (loss) | 6,218 | 5,639 | ' | ' |
Intercompany receivable from ION | -369,219 | -356,964 | ' | ' |
Treasury stock | 0 | 0 | ' | ' |
Total stockholders’ equity | 340,345 | 515,073 | ' | ' |
Noncontrolling interests | 0 | 0 | ' | ' |
Total equity | 340,345 | 515,073 | ' | ' |
Total liabilities and equity | 691,226 | 672,831 | ' | ' |
Reportable Legal Entities [Member] | All Other Subsidiaries [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 23,355 | 30,628 | 21,005 | 19,167 |
Accounts receivable, net | 48,027 | 54,071 | ' | ' |
Unbilled receivables | 15,978 | 15,069 | ' | ' |
Inventories | 50,578 | 56,530 | ' | ' |
Prepaid expenses and other current assets | 7,438 | 13,723 | ' | ' |
Total current assets | 145,376 | 170,021 | ' | ' |
Deferred income tax asset | 489 | 151 | ' | ' |
Property, plant, equipment and seismic rental equipment, net | 10,399 | 10,595 | ' | ' |
Multi-client data library, net | 26,212 | 27,477 | ' | ' |
Equity method investments | 2,800 | 0 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Goodwill | 28,892 | 28,365 | ' | ' |
Intangible assets, net | 3,001 | 4,164 | ' | ' |
Intercompany receivables | 0 | 3,388 | ' | ' |
Other assets | 24,262 | 30,173 | ' | ' |
Total assets | 241,431 | 274,334 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current maturities of long-term debt | 1,190 | 1,189 | ' | ' |
Accounts payable | 7,364 | 11,386 | ' | ' |
Accrued expenses | 13,392 | 17,153 | ' | ' |
Accrued multi-client data library royalties | 539 | 218 | ' | ' |
Deferred revenue | 4,295 | 7,036 | ' | ' |
Total current liabilities | 26,780 | 36,982 | ' | ' |
Non-current portion of long-term debt and lease obligations | 591 | 1,725 | ' | ' |
Intercompany payables | 21,732 | 0 | ' | ' |
Other long-term liabilities | 8,637 | 961 | ' | ' |
Total liabilities | 57,740 | 39,668 | ' | ' |
Redeemable noncontrolling interests | 1,878 | 2,123 | ' | ' |
Stockholders’ equity: | ' | ' | ' | ' |
Cumulative convertible preferred stock | ' | 0 | ' | ' |
Common stock | 19,138 | 11,506 | ' | ' |
Additional paid-in capital | 235,381 | 235,116 | ' | ' |
Accumulated earnings (deficit) | -4,010 | 16,732 | ' | ' |
Accumulated other comprehensive income (loss) | -11,920 | -12,541 | ' | ' |
Intercompany receivable from ION | -56,915 | -18,804 | ' | ' |
Treasury stock | 0 | 0 | ' | ' |
Total stockholders’ equity | 181,674 | 232,009 | ' | ' |
Noncontrolling interests | 139 | 534 | ' | ' |
Total equity | 181,813 | 232,543 | ' | ' |
Total liabilities and equity | 241,431 | 274,334 | ' | ' |
Consolidation, Eliminations [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | ' |
Accounts receivable, net | 0 | 138 | ' | ' |
Unbilled receivables | 0 | 0 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Prepaid expenses and other current assets | -584 | -2,455 | ' | ' |
Total current assets | -584 | -2,317 | ' | ' |
Deferred income tax asset | 688 | 5,349 | ' | ' |
Property, plant, equipment and seismic rental equipment, net | 0 | 11 | ' | ' |
Multi-client data library, net | 0 | 0 | ' | ' |
Equity method investments | 0 | 0 | ' | ' |
Investment in subsidiaries | -948,177 | -1,122,850 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Intangible assets, net | 0 | 0 | ' | ' |
Intercompany receivables | -21,732 | -13,981 | ' | ' |
Other assets | -23,985 | -30,000 | ' | ' |
Total assets | -993,790 | -1,163,788 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current maturities of long-term debt | 0 | 0 | ' | ' |
Accounts payable | 34 | 0 | ' | ' |
Accrued expenses | 64 | -1,740 | ' | ' |
Accrued multi-client data library royalties | 0 | 0 | ' | ' |
Deferred revenue | 0 | 0 | ' | ' |
Total current liabilities | 98 | -1,740 | ' | ' |
Non-current portion of long-term debt and lease obligations | 0 | 0 | ' | ' |
Intercompany payables | -447,866 | -389,749 | ' | ' |
Other long-term liabilities | -24,003 | -25,217 | ' | ' |
Total liabilities | -471,771 | -416,706 | ' | ' |
Redeemable noncontrolling interests | 0 | 0 | ' | ' |
Stockholders’ equity: | ' | ' | ' | ' |
Cumulative convertible preferred stock | ' | 0 | ' | ' |
Common stock | -309,598 | -301,966 | ' | ' |
Additional paid-in capital | -416,081 | -410,122 | ' | ' |
Accumulated earnings (deficit) | -228,176 | -417,664 | ' | ' |
Accumulated other comprehensive income (loss) | 5,702 | 6,902 | ' | ' |
Intercompany receivable from ION | 426,134 | 375,768 | ' | ' |
Treasury stock | 0 | 0 | ' | ' |
Total stockholders’ equity | -522,019 | -747,082 | ' | ' |
Noncontrolling interests | 0 | 0 | ' | ' |
Total equity | -522,019 | -747,082 | ' | ' |
Total liabilities and equity | ($993,790) | ($1,163,788) | ' | ' |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Information - Condensed Income Statement (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net revenues | $218,677 | $79,838 | $120,915 | $129,737 | $173,070 | $136,323 | $105,214 | $111,710 | $549,167 | $526,317 | $454,621 |
Cost of goods sold | ' | ' | ' | ' | ' | ' | ' | ' | 389,854 | 310,516 | 281,176 |
Gross profit | 102,842 | -15,104 | 36,618 | 34,957 | 72,744 | 55,958 | 45,943 | 41,156 | 159,313 | 215,801 | 173,445 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 142,917 | 141,274 | 106,650 |
Income (loss) from operations | 64,231 | -56,528 | 6,770 | 1,923 | 24,863 | 25,049 | 12,972 | 11,643 | 16,396 | 74,527 | 66,795 |
Interest expense, net | -4,241 | -4,281 | -2,756 | -1,066 | -1,146 | -1,237 | -1,364 | -1,518 | -12,344 | -5,265 | -5,784 |
Intercompany interest, net | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Equity in earnings (losses) of investments | -31,906 | -5,192 | -6,338 | 1,116 | -4,264 | -1,684 | 3,777 | 2,468 | -42,320 | 297 | -22,862 |
Other income (expense) | -2,138 | -74,301 | -107,118 | 1,027 | 17,851 | -936 | 895 | -686 | -182,530 | 17,124 | -3,447 |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -220,798 | 86,683 | 34,702 |
Income tax expense (benefit) | 6,270 | 56,954 | -38,705 | 1,201 | 10,191 | 6,037 | 4,184 | 3,445 | 25,720 | 23,857 | 10,136 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -246,518 | 62,826 | 24,566 |
Net loss attributable to noncontrolling interests | 143 | 498 | -59 | 76 | 53 | 42 | 281 | 113 | 658 | 489 | 208 |
Net income (loss) attributable to ION | ' | ' | ' | ' | ' | ' | ' | ' | -245,860 | 63,315 | 24,774 |
Payment of preferred dividends and conversion payment | ' | ' | ' | ' | ' | ' | ' | ' | 6,014 | ' | ' |
Payment of preferred dividends and conversion payment | 0 | 5,338 | 338 | 338 | 338 | 338 | 338 | 338 | 1,014 | 1,352 | 1,352 |
Net income (loss) applicable to common shares | 19,819 | -202,096 | -71,134 | 1,537 | 26,828 | 14,859 | 12,039 | 8,237 | -251,874 | 61,963 | 23,422 |
Comprehensive net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -245,770 | 67,133 | 23,903 |
Comprehensive loss attributable to noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | 658 | 489 | 208 |
Comprehensive net income (loss) attributable to ION | ' | ' | ' | ' | ' | ' | ' | ' | -245,112 | 67,622 | 24,111 |
Reportable Legal Entities [Member] | ION Geophysical Corporation [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Cost of goods sold | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 35,054 | 35,982 | 26,504 |
Income (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | -35,054 | -35,982 | -26,504 |
Interest expense, net | ' | ' | ' | ' | ' | ' | ' | ' | -12,102 | -5,137 | -5,804 |
Intercompany interest, net | ' | ' | ' | ' | ' | ' | ' | ' | 411 | 232 | 182 |
Equity in earnings (losses) of investments | ' | ' | ' | ' | ' | ' | ' | ' | -192,220 | 58,162 | 44,051 |
Other income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | 12,166 | 29,447 | -1,278 |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -226,799 | 46,722 | 10,647 |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 19,061 | -16,593 | -14,127 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -245,860 | 63,315 | 24,774 |
Net loss attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Net income (loss) attributable to ION | ' | ' | ' | ' | ' | ' | ' | ' | -245,860 | 63,315 | 24,774 |
Payment of preferred dividends and conversion payment | ' | ' | ' | ' | ' | ' | ' | ' | 6,014 | ' | ' |
Payment of preferred dividends and conversion payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,352 | 1,352 |
Net income (loss) applicable to common shares | ' | ' | ' | ' | ' | ' | ' | ' | -251,874 | 61,963 | 23,422 |
Comprehensive net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -245,112 | 67,622 | 24,111 |
Comprehensive loss attributable to noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Comprehensive net income (loss) attributable to ION | ' | ' | ' | ' | ' | ' | ' | ' | -245,112 | 67,622 | 24,111 |
Reportable Legal Entities [Member] | The Guarantors [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 337,570 | 311,758 | 254,084 |
Cost of goods sold | ' | ' | ' | ' | ' | ' | ' | ' | 240,704 | 192,639 | 163,349 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 96,866 | 119,119 | 90,735 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 62,028 | 61,315 | 44,205 |
Income (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | 34,838 | 57,804 | 46,530 |
Interest expense, net | ' | ' | ' | ' | ' | ' | ' | ' | -49 | 198 | 172 |
Intercompany interest, net | ' | ' | ' | ' | ' | ' | ' | ' | -1,374 | -629 | -507 |
Equity in earnings (losses) of investments | ' | ' | ' | ' | ' | ' | ' | ' | -19,755 | 33,958 | 38,931 |
Other income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | -193,289 | -10,334 | -106 |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -179,629 | 80,997 | 85,020 |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | -10,883 | 21,771 | 16,076 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -168,746 | 59,226 | 68,944 |
Net loss attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Net income (loss) attributable to ION | ' | ' | ' | ' | ' | ' | ' | ' | -168,746 | 59,226 | 68,944 |
Payment of preferred dividends and conversion payment | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Payment of preferred dividends and conversion payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Net income (loss) applicable to common shares | ' | ' | ' | ' | ' | ' | ' | ' | -168,746 | 59,226 | 68,944 |
Comprehensive net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -168,167 | 62,085 | 68,909 |
Comprehensive loss attributable to noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Comprehensive net income (loss) attributable to ION | ' | ' | ' | ' | ' | ' | ' | ' | -168,167 | 62,085 | 68,909 |
Reportable Legal Entities [Member] | All Other Subsidiaries [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net revenues | ' | ' | ' | ' | ' | ' | ' | ' | 213,826 | 214,939 | 201,320 |
Cost of goods sold | ' | ' | ' | ' | ' | ' | ' | ' | 151,379 | 118,257 | 118,248 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 62,447 | 96,682 | 83,072 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 45,835 | 43,977 | 36,303 |
Income (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | 16,612 | 52,705 | 46,769 |
Interest expense, net | ' | ' | ' | ' | ' | ' | ' | ' | -193 | -326 | -152 |
Intercompany interest, net | ' | ' | ' | ' | ' | ' | ' | ' | 963 | 397 | 325 |
Equity in earnings (losses) of investments | ' | ' | ' | ' | ' | ' | ' | ' | -19,833 | 0 | 0 |
Other income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | -1,407 | -1,989 | -2,063 |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | -3,858 | 50,787 | 44,879 |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 17,542 | 18,679 | 8,187 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -21,400 | 32,108 | 36,692 |
Net loss attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | 658 | 489 | 208 |
Net income (loss) attributable to ION | ' | ' | ' | ' | ' | ' | ' | ' | -20,742 | 32,597 | 36,900 |
Payment of preferred dividends and conversion payment | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Payment of preferred dividends and conversion payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Net income (loss) applicable to common shares | ' | ' | ' | ' | ' | ' | ' | ' | -20,742 | 32,597 | 36,900 |
Comprehensive net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -20,779 | 34,967 | 36,657 |
Comprehensive loss attributable to noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | 658 | 489 | 208 |
Comprehensive net income (loss) attributable to ION | ' | ' | ' | ' | ' | ' | ' | ' | -20,121 | 35,456 | 36,865 |
Consolidation, Eliminations [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total net revenues | ' | ' | ' | ' | ' | ' | ' | ' | -2,229 | -380 | -783 |
Cost of goods sold | ' | ' | ' | ' | ' | ' | ' | ' | -2,229 | -380 | -421 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -362 |
Total operating expenses | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | -362 |
Income (loss) from operations | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Interest expense, net | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Intercompany interest, net | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Equity in earnings (losses) of investments | ' | ' | ' | ' | ' | ' | ' | ' | 189,488 | -91,823 | -105,844 |
Other income (expense) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Income (loss) before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 189,488 | -91,823 | -105,844 |
Income tax expense (benefit) | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 189,488 | -91,823 | -105,844 |
Net loss attributable to noncontrolling interests | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Net income (loss) attributable to ION | ' | ' | ' | ' | ' | ' | ' | ' | 189,488 | -91,823 | -105,844 |
Payment of preferred dividends and conversion payment | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' |
Payment of preferred dividends and conversion payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 |
Net income (loss) applicable to common shares | ' | ' | ' | ' | ' | ' | ' | ' | 189,488 | -91,823 | -105,844 |
Comprehensive net income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 188,288 | -97,541 | -105,774 |
Comprehensive loss attributable to noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Comprehensive net income (loss) attributable to ION | ' | ' | ' | ' | ' | ' | ' | ' | $188,288 | ($97,541) | ($105,774) |
Condensed_Consolidating_Financ5
Condensed Consolidating Financial Information - Condensed Cash Flow Statement (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net cash provided by operating activities | $147,587 | $169,081 | $129,984 |
Cash flows from investing activities: | ' | ' | ' |
Investment in multi-client data library | -114,582 | -145,627 | -143,782 |
Purchase of property, plant, equipment and seismic rental equipment | -16,914 | -16,650 | -11,060 |
Net advances to INOVA Geophysical | -5,000 | 0 | 0 |
Investment in and advances to OceanGeo B.V. | -24,755 | 0 | 0 |
Proceeds from sale of a cost method investment | 4,150 | 0 | 0 |
Maturity (net purchases) of short-term investments | 0 | 20,000 | -20,000 |
Investment in convertible notes | -2,000 | -2,000 | -6,500 |
Capital contribution to affiliate | 0 | ' | 0 |
Other investing activities | 128 | 0 | -280 |
Net cash provided by (used in) investing activities | -158,973 | -144,277 | -181,622 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from issuance of notes | 175,000 | 0 | 0 |
Payments under revolving line of credit | -97,250 | -51,000 | 0 |
Borrowings under revolving line of credit | 35,000 | 148,250 | 0 |
Payments on notes payable and long-term debt | -4,361 | -101,702 | -6,145 |
Cost associated with issuance of notes | 6,773 | 0 | 0 |
Capital contribution from affiliate | 0 | ' | 0 |
Intercompany lending | 0 | 0 | 0 |
Payment of preferred dividends | -1,014 | -1,352 | -1,352 |
Payment of preferred dividends and conversion payment | -6,014 | ' | ' |
Proceeds from employee stock purchases and exercise of stock options | 2,527 | 807 | 13,105 |
Excess tax benefit from stock-based compensation | 276 | 193 | 3,294 |
Contribution from noncontrolling interests | 0 | 212 | 961 |
Other financing activities | 297 | -1,862 | -59 |
Net cash provided by (used in) financing activities | 98,702 | -6,454 | 9,804 |
Effect of change in foreign currency exchange rates on cash and cash equivalents | -231 | 219 | -183 |
Net increase (decrease) in cash and cash equivalents | 87,085 | 18,569 | -42,017 |
Cash and cash equivalents at beginning of period | 60,971 | 42,402 | 84,419 |
Cash and cash equivalents at end of period | 148,056 | 60,971 | 42,402 |
Reportable Legal Entities [Member] | ION Geophysical Corporation [Member] | ' | ' | ' |
Cash flows from operating activities: | ' | ' | ' |
Net cash provided by operating activities | -50,731 | 19,362 | -19,240 |
Cash flows from investing activities: | ' | ' | ' |
Investment in multi-client data library | 0 | 0 | 0 |
Purchase of property, plant, equipment and seismic rental equipment | -2,075 | -2,485 | -1,564 |
Net advances to INOVA Geophysical | -5,000 | ' | ' |
Investment in and advances to OceanGeo B.V. | 0 | ' | ' |
Proceeds from sale of a cost method investment | 4,150 | ' | ' |
Maturity (net purchases) of short-term investments | ' | 20,000 | -20,000 |
Investment in convertible notes | -2,000 | -2,000 | -6,500 |
Capital contribution to affiliate | -5,695 | ' | 0 |
Other investing activities | 0 | ' | -137 |
Net cash provided by (used in) investing activities | -10,620 | 15,515 | -28,201 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from issuance of notes | 175,000 | ' | ' |
Payments under revolving line of credit | -97,250 | -51,000 | ' |
Borrowings under revolving line of credit | 35,000 | 148,250 | ' |
Payments on notes payable and long-term debt | 0 | -99,270 | -4,000 |
Cost associated with issuance of notes | 6,773 | ' | ' |
Capital contribution from affiliate | 0 | ' | 0 |
Intercompany lending | 52,646 | -21,699 | -7,387 |
Payment of preferred dividends | ' | -1,352 | -1,352 |
Payment of preferred dividends and conversion payment | -6,014 | ' | ' |
Proceeds from employee stock purchases and exercise of stock options | 2,527 | 807 | 13,105 |
Excess tax benefit from stock-based compensation | 276 | 193 | 3,294 |
Contribution from noncontrolling interests | ' | 0 | 0 |
Other financing activities | 297 | -1,862 | -59 |
Net cash provided by (used in) financing activities | 155,709 | -25,933 | 3,601 |
Effect of change in foreign currency exchange rates on cash and cash equivalents | 0 | 2 | -15 |
Net increase (decrease) in cash and cash equivalents | 94,358 | 8,946 | -43,855 |
Cash and cash equivalents at beginning of period | 30,343 | 21,397 | 65,252 |
Cash and cash equivalents at end of period | 124,701 | 30,343 | 21,397 |
Reportable Legal Entities [Member] | The Guarantors [Member] | ' | ' | ' |
Cash flows from operating activities: | ' | ' | ' |
Net cash provided by operating activities | 166,838 | 105,768 | 110,802 |
Cash flows from investing activities: | ' | ' | ' |
Investment in multi-client data library | -111,689 | -121,424 | -133,207 |
Purchase of property, plant, equipment and seismic rental equipment | -10,171 | -9,947 | -4,663 |
Net advances to INOVA Geophysical | 0 | ' | ' |
Investment in and advances to OceanGeo B.V. | 0 | ' | ' |
Proceeds from sale of a cost method investment | 0 | ' | ' |
Maturity (net purchases) of short-term investments | ' | 0 | 0 |
Investment in convertible notes | 0 | 0 | 0 |
Capital contribution to affiliate | -7,897 | ' | -750 |
Other investing activities | 128 | ' | 0 |
Net cash provided by (used in) investing activities | -129,629 | -131,371 | -138,620 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from issuance of notes | 0 | ' | ' |
Payments under revolving line of credit | 0 | 0 | ' |
Borrowings under revolving line of credit | 0 | 0 | ' |
Payments on notes payable and long-term debt | -3,249 | -1,626 | -1,535 |
Cost associated with issuance of notes | 0 | ' | ' |
Capital contribution from affiliate | 5,695 | ' | 0 |
Intercompany lending | -39,655 | 27,229 | 29,353 |
Payment of preferred dividends | ' | 0 | 0 |
Payment of preferred dividends and conversion payment | 0 | ' | ' |
Proceeds from employee stock purchases and exercise of stock options | 0 | 0 | 0 |
Excess tax benefit from stock-based compensation | 0 | 0 | 0 |
Contribution from noncontrolling interests | ' | 0 | 0 |
Other financing activities | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | -37,209 | 25,603 | 27,818 |
Effect of change in foreign currency exchange rates on cash and cash equivalents | 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 |
Reportable Legal Entities [Member] | All Other Subsidiaries [Member] | ' | ' | ' |
Cash flows from operating activities: | ' | ' | ' |
Net cash provided by operating activities | 31,480 | 43,951 | 38,422 |
Cash flows from investing activities: | ' | ' | ' |
Investment in multi-client data library | -2,893 | -24,203 | -10,575 |
Purchase of property, plant, equipment and seismic rental equipment | -4,668 | -4,218 | -4,833 |
Net advances to INOVA Geophysical | 0 | ' | ' |
Investment in and advances to OceanGeo B.V. | -24,755 | ' | ' |
Proceeds from sale of a cost method investment | 0 | ' | ' |
Maturity (net purchases) of short-term investments | ' | 0 | 0 |
Investment in convertible notes | 0 | 0 | 0 |
Capital contribution to affiliate | 0 | ' | 0 |
Other investing activities | 0 | ' | -143 |
Net cash provided by (used in) investing activities | -32,316 | -28,421 | -15,551 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from issuance of notes | 0 | ' | ' |
Payments under revolving line of credit | 0 | 0 | ' |
Borrowings under revolving line of credit | 0 | 0 | ' |
Payments on notes payable and long-term debt | -1,112 | -806 | -610 |
Cost associated with issuance of notes | 0 | ' | ' |
Capital contribution from affiliate | 7,897 | ' | 750 |
Intercompany lending | -12,991 | -5,530 | -21,966 |
Payment of preferred dividends | ' | 0 | 0 |
Payment of preferred dividends and conversion payment | 0 | ' | ' |
Proceeds from employee stock purchases and exercise of stock options | 0 | 0 | 0 |
Excess tax benefit from stock-based compensation | 0 | 0 | 0 |
Contribution from noncontrolling interests | ' | 212 | 961 |
Other financing activities | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | -6,206 | -6,124 | -20,865 |
Effect of change in foreign currency exchange rates on cash and cash equivalents | -231 | 217 | -168 |
Net increase (decrease) in cash and cash equivalents | -7,273 | 9,623 | 1,838 |
Cash and cash equivalents at beginning of period | 30,628 | 21,005 | 19,167 |
Cash and cash equivalents at end of period | 23,355 | 30,628 | 21,005 |
Consolidation, Eliminations [Member] | ' | ' | ' |
Cash flows from operating activities: | ' | ' | ' |
Net cash provided by operating activities | 0 | 0 | 0 |
Cash flows from investing activities: | ' | ' | ' |
Investment in multi-client data library | 0 | 0 | 0 |
Purchase of property, plant, equipment and seismic rental equipment | 0 | 0 | 0 |
Net advances to INOVA Geophysical | 0 | ' | ' |
Investment in and advances to OceanGeo B.V. | 0 | ' | ' |
Proceeds from sale of a cost method investment | 0 | ' | ' |
Maturity (net purchases) of short-term investments | ' | 0 | 0 |
Investment in convertible notes | 0 | 0 | 0 |
Capital contribution to affiliate | 13,592 | ' | 750 |
Other investing activities | 0 | ' | 0 |
Net cash provided by (used in) investing activities | 13,592 | 0 | 750 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from issuance of notes | 0 | ' | ' |
Payments under revolving line of credit | 0 | 0 | ' |
Borrowings under revolving line of credit | 0 | 0 | ' |
Payments on notes payable and long-term debt | 0 | 0 | 0 |
Cost associated with issuance of notes | 0 | ' | ' |
Capital contribution from affiliate | -13,592 | ' | -750 |
Intercompany lending | 0 | 0 | ' |
Payment of preferred dividends | ' | 0 | 0 |
Payment of preferred dividends and conversion payment | 0 | ' | ' |
Proceeds from employee stock purchases and exercise of stock options | 0 | 0 | 0 |
Excess tax benefit from stock-based compensation | 0 | 0 | 0 |
Contribution from noncontrolling interests | ' | 0 | 0 |
Other financing activities | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | -13,592 | 0 | -750 |
Effect of change in foreign currency exchange rates on cash and cash equivalents | 0 | 0 | ' |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | ' |
Cash and cash equivalents at end of period | $0 | $0 | $0 |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for doubtful accounts [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Year | $6,711 | $1,198 | $845 |
Charged (Credited) to Costs and Expenses | 12,040 | 5,811 | 597 |
Deductions | -11,529 | -298 | -244 |
Balance at End of Year | 7,222 | 6,711 | 1,198 |
Warranty [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Year | 1,041 | 715 | 784 |
Charged (Credited) to Costs and Expenses | 538 | 1,258 | 1,165 |
Deductions | -936 | -932 | -1,234 |
Balance at End of Year | 643 | 1,041 | 715 |
Valuation allowance on deferred tax assets [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Year | 63,261 | 69,475 | 62,700 |
Charged (Credited) to Costs and Expenses | 88,112 | -6,214 | 6,775 |
Deductions | -338 | 0 | 0 |
Balance at End of Year | 151,035 | 63,261 | 69,475 |
Excess and obsolete inventory [Member] | ' | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' | ' |
Balance at Beginning of Year | 14,239 | 13,037 | 12,876 |
Charged (Credited) to Costs and Expenses | 18,644 | 1,326 | 567 |
Deductions | -328 | -124 | -406 |
Balance at End of Year | $32,555 | $14,239 | $13,037 |