Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 24, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'ION GEOPHYSICAL CORP | ' |
Entity Central Index Key | '0000866609 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 164,203,639 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $129,847 | $148,056 |
Accounts receivable, net | 86,738 | 149,448 |
Unbilled receivables | 57,477 | 49,468 |
Inventories | 55,376 | 57,173 |
Prepaid expenses and other current assets | 26,453 | 24,772 |
Total current assets | 355,891 | 428,917 |
Deferred income tax asset | 14,340 | 14,650 |
Property, plant, equipment and seismic rental equipment, net | 60,365 | 46,684 |
Multi-client data library, net | 243,917 | 238,784 |
Equity method investments | 40,174 | 53,865 |
Goodwill | 50,385 | 55,876 |
Intangible assets, net | 9,191 | 11,247 |
Other assets | 19,482 | 14,648 |
Total assets | 793,745 | 864,671 |
Current liabilities: | ' | ' |
Current maturities of long-term debt | 5,901 | 5,906 |
Accounts payable | 30,666 | 22,654 |
Accrued expenses | 75,608 | 84,358 |
Accrued multi-client data library royalties | 24,416 | 46,460 |
Deferred revenue | 16,495 | 20,682 |
Total current liabilities | 153,086 | 180,060 |
Long-term debt, net of current maturities | 179,583 | 214,246 |
Other long-term liabilities | 142,776 | 210,602 |
Total liabilities | 475,445 | 604,908 |
Redeemable noncontrolling interest | 2,086 | 1,878 |
Equity: | ' | ' |
Common stock, $0.01 par value; authorized 200,000,000 shares; outstanding 164,203,639 and 163,737,757 shares at September 30, 2014 and December 31, 2013, respectively, net of treasury stock | 1,642 | 1,637 |
Additional paid-in capital | 886,170 | 879,969 |
Accumulated deficit | -553,531 | -606,157 |
Accumulated other comprehensive loss | -11,720 | -11,138 |
Treasury stock, at cost, 849,539 shares at both September 30, 2014 and December 31, 2013 | -6,565 | -6,565 |
Total stockholders' equity | 315,996 | 257,746 |
Noncontrolling interests | 218 | 139 |
Total equity | 316,214 | 257,885 |
Total liabilities and equity | $793,745 | $864,671 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
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 | 164,203,639 | 163,737,757 |
Treasury stock, shares | 849,539 | 849,539 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Service revenues | $71,923 | $44,679 | $272,386 | $224,231 |
Product revenues | 34,617 | 35,159 | 100,332 | 106,259 |
Total net revenues | 106,540 | 79,838 | 372,718 | 330,490 |
Cost of services | 60,285 | 52,256 | 200,697 | 188,494 |
Cost of products | 17,032 | 42,686 | 47,716 | 85,525 |
Gross profit (loss) | 29,223 | -15,104 | 124,305 | 56,471 |
Operating expenses: | ' | ' | ' | ' |
Research, development and engineering | 10,910 | 10,288 | 30,254 | 28,665 |
Marketing and sales | 8,480 | 8,416 | 27,610 | 25,364 |
General, administrative and other operating expenses | 15,182 | 22,720 | 48,334 | 50,277 |
Total operating expenses | 34,572 | 41,424 | 106,198 | 104,306 |
Income (loss) from operations | -5,349 | -56,528 | 18,107 | -47,835 |
Interest expense, net | -5,048 | -4,281 | -14,779 | -8,103 |
Equity in losses of investments | -5,558 | -5,192 | -9,027 | -10,414 |
Other income (expense), net | -622 | -74,301 | 73,970 | -180,392 |
Income (loss) before income taxes | -16,577 | -140,302 | 68,271 | -246,744 |
Income tax expense | 8,345 | 56,954 | 14,261 | 19,450 |
Net income (loss) | -24,922 | -197,256 | 54,010 | -266,194 |
Net (income) loss attributable to noncontrolling interests | 381 | 498 | -1,384 | 515 |
Net income (loss) attributable to ION | -24,541 | -196,758 | 52,626 | -265,679 |
Preferred stock dividends | 0 | 338 | 0 | 1,014 |
Conversion payment of preferred stock | 0 | 5,000 | 0 | 5,000 |
Net income (loss) applicable to common shares | ($24,541) | ($202,096) | $52,626 | ($271,693) |
Net income (loss) per share: | ' | ' | ' | ' |
Basic, in dollars per share | ($0.15) | ($1.29) | $0.32 | ($1.73) |
Diluted, in dollars per share | ($0.15) | ($1.29) | $0.32 | ($1.73) |
Weighted average number of common shares outstanding: | ' | ' | ' | ' |
Basic, in shares | 164,149 | 157,143 | 164,021 | 156,842 |
Diluted, in shares | 164,149 | 157,143 | 164,326 | 156,842 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income (loss) | ($24,922) | ($197,256) | $54,010 | ($266,194) |
Other comprehensive income (loss), net of taxes, as appropriate: | ' | ' | ' | ' |
Foreign currency translation adjustments | -2,632 | 2,513 | 489 | -530 |
Equity interest in investees' other comprehensive income (loss) | 738 | -716 | -1,125 | -1,265 |
Other changes in other comprehensive income | 28 | 27 | 54 | 381 |
Total other comprehensive income (loss), net of taxes | -1,866 | 1,824 | -582 | -1,414 |
Comprehensive net income (loss) | -26,788 | -195,432 | 53,428 | -267,608 |
Comprehensive (income) loss attributable to noncontrolling interest | 381 | 498 | -1,384 | 515 |
Comprehensive net income (loss) attributable to ION | ($26,407) | ($194,934) | $52,044 | ($267,093) |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | |
Cash flows from operating activities: | ' | ' | |
Net income (loss) | $54,010 | ($266,194) | |
Adjustments to reconcile net income (loss) to cash provided by operating activities: | ' | ' | |
Depreciation and amortization (other than multi-client library) | 20,989 | 13,146 | |
Amortization of multi-client library | 46,014 | 50,892 | |
Stock-based compensation expense | 7,058 | 5,707 | |
Equity in losses of investments | 9,027 | 10,414 | |
Accrual for (reduction of) loss contingency related to legal proceedings | -69,557 | 181,776 | |
Gain on sale of Source product line | -6,522 | [1] | 0 |
Gain on sale of cost-method investment | 0 | -3,591 | |
Write-down of multi-client data library | 0 | 5,461 | |
Write-down of receivables from OceanGeo | 0 | 9,157 | |
Write-down of excess and obsolete inventory | 0 | 21,197 | |
Deferred income taxes | -1,536 | 7,768 | |
Change in operating assets and liabilities: | ' | ' | |
Accounts receivable | 71,540 | 57,481 | |
Unbilled receivables | -8,036 | 6,890 | |
Inventories | -4,272 | -13,157 | |
Accounts payable, accrued expenses and accrued royalties | -31,324 | -6,179 | |
Deferred revenue | -4,153 | -6,527 | |
Other assets and liabilities | 3,738 | 4,274 | |
Net cash provided by operating activities | 86,976 | 78,515 | |
Cash flows from investing activities: | ' | ' | |
Cash invested in multi-client data library | -57,340 | -86,346 | |
Purchase of property, plant, equipment and seismic rental assets | -6,842 | -13,539 | |
Repayment of (advances to) INOVA Geophysical | 1,000 | -8,000 | |
Investment in and advances to OceanGeo B.V. | -3,683 | -9,500 | |
Cash of OceanGeo B.V. upon acquiring a controlling interest | 609 | 0 | |
Net proceeds from sale of Source product line | 14,394 | 0 | |
Proceeds from sale of a cost-method investment | 0 | 4,150 | |
Investment in convertible note | 0 | -2,000 | |
Other investing activities | 928 | 76 | |
Net cash used in investing activities | -50,934 | -115,159 | |
Cash flows from financing activities: | ' | ' | |
Proceeds from issuance of notes | 0 | 175,000 | |
Borrowings under revolving line of credit | 15,000 | 0 | |
Payments under revolving line of credit | -50,000 | -97,250 | |
Payments on notes payable and long-term debt | -11,737 | -3,296 | |
Cost associated with issuance of notes | -2,126 | -6,731 | |
Acquisition of non-controlling interest | -6,000 | 0 | |
Payment of preferred dividends | 0 | -1,014 | |
Conversion payment of preferred stock | 0 | -5,000 | |
Proceeds from employee stock purchases and exercise of stock options | 577 | 2,367 | |
Other financing activities | -154 | 790 | |
Net cash (used in) provided by financing activities | -54,440 | 64,866 | |
Effect of change in foreign currency exchange rates on cash and cash equivalents | 189 | -608 | |
Net (decrease) increase in cash and cash equivalents | -18,209 | 27,614 | |
Cash and cash equivalents at beginning of period | 148,056 | 60,971 | |
Cash and cash equivalents at end of period | $129,847 | $88,585 | |
[1] | In May 2014, the Company sold its Source product line for approximately $14.4 million, net of transaction fees, recording a gain of approximately $6.5 million before taxes. As a part of this transaction, the Company reduced Goodwill on the Marine reporting unit by $5.1 million. The historical results of this product line have not been material to the Companybs results of operations. |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Basis of Presentation | ' |
Basis of Presentation | |
The condensed consolidated balance sheet of ION Geophysical Corporation and its subsidiaries (collectively referred to as the “Company” or “ION,” unless the context otherwise requires) at December 31, 2013 has been derived from the Company’s audited consolidated financial statements at that date. The condensed consolidated balance sheet at September 30, 2014, and the condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2014 and 2013 and the condensed consolidated statements of cash flows for the nine months ended September 30, 2014 and 2013, are unaudited. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for the three and nine months ended September 30, 2014 are not necessarily indicative of the operating results for a full year or of future operations. | |
These condensed consolidated financial statements have been prepared using accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q and applicable rules of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in annual financial statements presented in accordance with accounting principles generally accepted in the United States have been omitted. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 and Amendment No. 1 thereto on Form 10-K/A, which was filed on March 28, 2014 and contains the separate consolidated financial statements of INOVA Geophysical Equipment Limited (“INOVA Geophysical”) for its fiscal year ended December 31, 2013. |
Acquisition_of_OceanGeo
Acquisition of OceanGeo | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||
Acquisition of OceanGeo | ' | ||||||||||||
Acquisition of OceanGeo | |||||||||||||
In February 2013, the Company acquired 30% of OceanGeo B.V. (“OceanGeo”). OceanGeo specializes in seismic acquisition operations using ocean bottom cables deployed from vessels leased by OceanGeo. In October 2013, the Company reached agreement with its joint venture partner in OceanGeo, Georadar Levantamentos Geofisicos S/A (“Georadar”), for the Company to have the option to increase its ownership percentage in OceanGeo from 30% 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, as necessary, up to a maximum of $25.0 million. Prior to obtaining a controlling interest in OceanGeo, the Company advanced a total of $18.9 million to OceanGeo. | |||||||||||||
In January 2014, the Company acquired an additional 40% interest in OceanGeo, through the conversion of certain outstanding amounts loaned to OceanGeo by the Company into additional equity interests of OceanGeo, bringing the Company’s total equity interest in OceanGeo to 70% and giving the Company control over OceanGeo. The Company has included in its results of operations, the results of OceanGeo from the date of the Company’s acquisition of a controlling interest. | |||||||||||||
In July 2014, the Company paid $6.0 million to Georadar for the remaining 30% of OceanGeo, increasing its equity interest in OceanGeo to 100%. In addition to the $6.0 million cash purchase price, the Company agreed to pay Georadar up to an additional $5.0 million, contingent upon the occurrence of certain future events, including the award of a future material project in 2014 and a minimal amount of vessel downtime. The Company does not believe that it will have to pay the contingent amount and, therefore, has not accrued this amount as of September 30, 2014. Since the initial investment in early 2013, the Company has invested or contributed assets totaling approximately $46.5 million to OceanGeo. | |||||||||||||
The Company acquired OceanGeo as part of its strategy to expand the range of service offerings it can provide to oil and gas exploration and production customers and to put its Calypso® seabed acquisition technology to work in a service model to meet the growing demand for seabed seismic services. | |||||||||||||
The acquisition of OceanGeo was accounted for by the acquisition method, whereby the assets acquired and liabilities assumed were recorded at their fair values as of the acquisition date based on an income approach. The estimated fair value of the assets acquired and liabilities assumed approximated the purchase price and therefore no goodwill or bargain purchase was recognized. During the three months ended September 30, 2014, management adjusted its purchase accounting valuation estimates and, as a result, retrospectively adjusted the valuations of assets with a corresponding increase to property, plant, and equipment as of the acquisition date. The retrospective adjustments amounted to approximately $3.9 million and primarily related to revisions of estimates of recoverability of the multi-client data library. In connection with the acquisition, the Company incurred $1.3 million in acquisition-related transaction costs related to professional services and fees. These costs were expensed as incurred and were included in other income (expense), net in the Company’s condensed consolidated statement of operations for the nine months ended September 30, 2014. As a result of consolidating OceanGeo’s results into the Company’s consolidated results of operations for the period from the acquisition date at the end of January 2014 to September 30, 2014, the Company’s results of operations include $25.0 million of OceanGeo revenues and $1.7 million of income from OceanGeo’s operations for the three months ended September 30, 2014, and $71.5 million of OceanGeo revenues and $12.3 million of income from OceanGeo’s operations for the nine months ended September 30, 2014. The following table summarizes the fair value assigned to the assets acquired and liabilities assumed, as well as the noncontrolling interest, at the acquisition date (in thousands): | |||||||||||||
Estimated Fair Value of Assets Acquired and Liabilities Assumed: | |||||||||||||
Cash and cash equivalents | $ | 609 | |||||||||||
Accounts receivable | 9,247 | ||||||||||||
Prepaid expenses and other current assets | 1,433 | ||||||||||||
Property, plant, equipment and seismic rental equipment, net | 18,474 | ||||||||||||
Other assets | 2,227 | ||||||||||||
Total identifiable assets | 31,990 | ||||||||||||
Accounts payable and accrued liabilities | (13,464 | ) | |||||||||||
Bank loans | (6,135 | ) | |||||||||||
Other liabilities | (1,026 | ) | |||||||||||
Net assets | 11,365 | ||||||||||||
Noncontrolling interest | (3,410 | ) | |||||||||||
Total consideration | $ | 7,955 | |||||||||||
The following summarized unaudited pro forma consolidated income statement information for the nine months ended September 30, 2014 and 2013 and for the three months ended September 30, 2013, assumes that the OceanGeo acquisition had occurred as of the beginning of the periods presented. The Company has prepared these unaudited pro forma financial results for comparative purposes only. These unaudited pro forma financial results may not be indicative of the results that would have occurred if ION had completed the acquisition as of the beginning of the periods presented or the results that may be attained in the future. Amounts presented below are in thousands, except for the per share amounts: | |||||||||||||
Pro forma Consolidated ION Income Statement Information | Three Months Ended September 30, 2013 | Nine Months Ended September 30, | |||||||||||
2014 | 2013 | ||||||||||||
Net revenues | $ | 79,838 | $ | 381,902 | $ | 362,157 | |||||||
Income (loss) from operations | $ | (72,757 | ) | $ | 22,492 | $ | (66,997 | ) | |||||
Net income (loss) | $ | (214,305 | ) | $ | 55,838 | $ | (277,612 | ) | |||||
Net income (loss) attributable to ION | $ | (213,807 | ) | $ | 53,684 | $ | (277,097 | ) | |||||
Basic net income (loss) per common share | $ | (1.40 | ) | $ | 0.33 | $ | (1.81 | ) | |||||
Diluted net income (loss) per common share | $ | (1.40 | ) | $ | 0.33 | $ | (1.81 | ) | |||||
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
Segment Information | ||||||||||||||||
The Company operates through four business segments – Solutions, Systems, Software and Ocean Bottom Services (the segment name for OceanGeo) – as well as through its INOVA Geophysical joint venture. See Note 4 “Equity Method Investments” for the summarized financial information for INOVA Geophysical. The Company measures segment operating results based on income from operations. | ||||||||||||||||
A summary of segment information is as follows (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net revenues: | ||||||||||||||||
Solutions: | ||||||||||||||||
New Venture | $ | 18,446 | $ | 11,945 | $ | 76,499 | $ | 93,630 | ||||||||
Data Library | 3,262 | 5,184 | 30,104 | 36,153 | ||||||||||||
Total multi-client revenues | 21,708 | 17,129 | 106,603 | 129,783 | ||||||||||||
Data Processing | 24,151 | 26,318 | 91,131 | 91,453 | ||||||||||||
Total | $ | 45,859 | $ | 43,447 | $ | 197,734 | $ | 221,236 | ||||||||
Systems: | ||||||||||||||||
Towed Streamer | $ | 13,666 | $ | 15,342 | $ | 35,782 | $ | 41,461 | ||||||||
Ocean Bottom Equipment | — | 159 | — | 7,307 | ||||||||||||
Other | 11,029 | 10,766 | 36,166 | 33,194 | ||||||||||||
Total | $ | 24,695 | $ | 26,267 | $ | 71,948 | $ | 81,962 | ||||||||
Software: | ||||||||||||||||
Software Systems | $ | 9,922 | $ | 8,892 | $ | 28,384 | $ | 24,297 | ||||||||
Services | 1,088 | 1,232 | 3,198 | 2,995 | ||||||||||||
Total | $ | 11,010 | $ | 10,124 | $ | 31,582 | $ | 27,292 | ||||||||
Ocean Bottom Services | $ | 24,976 | $ | — | $ | 71,454 | $ | — | ||||||||
Total | $ | 106,540 | $ | 79,838 | $ | 372,718 | $ | 330,490 | ||||||||
Gross profit (loss): | ||||||||||||||||
Solutions | $ | 5,927 | $ | (8,487 | ) | $ | 51,207 | $ | 33,600 | |||||||
Systems | 10,123 | (13,987 | ) | 31,288 | 3,195 | |||||||||||
Software | 8,326 | 7,370 | 23,388 | 19,676 | ||||||||||||
Ocean Bottom Services | 4,847 | — | 18,422 | — | ||||||||||||
Total | $ | 29,223 | $ | (15,104 | ) | $ | 124,305 | $ | 56,471 | |||||||
Gross margin: | ||||||||||||||||
Solutions | 13 | % | (20 | )% | 26 | % | 15 | % | ||||||||
Systems | 41 | % | (53 | )% | 43 | % | 4 | % | ||||||||
Software | 76 | % | 73 | % | 74 | % | 72 | % | ||||||||
Ocean Bottom Services | 19 | % | — | % | 26 | % | — | % | ||||||||
Total | 27 | % | (19 | )% | 33 | % | 17 | % | ||||||||
Income (loss) from operations: | ||||||||||||||||
Solutions | $ | (5,960 | ) | $ | (18,163 | ) | $ | 11,733 | $ | 215 | ||||||
Systems | 2,917 | (23,610 | ) | 9,835 | (21,172 | ) | ||||||||||
Software | 6,227 | 6,280 | 16,985 | 16,396 | ||||||||||||
Ocean Bottom Services | 1,677 | — | 12,333 | — | ||||||||||||
Corporate and other | (10,210 | ) | (21,035 | ) | (32,779 | ) | (43,274 | ) | ||||||||
Income (loss) from operations | (5,349 | ) | (56,528 | ) | 18,107 | (47,835 | ) | |||||||||
Interest expense, net | (5,048 | ) | (4,281 | ) | (14,779 | ) | (8,103 | ) | ||||||||
Equity in losses of investments | (5,558 | ) | (5,192 | ) | (9,027 | ) | (10,414 | ) | ||||||||
Other income (expense), net | (622 | ) | (74,301 | ) | 73,970 | (180,392 | ) | |||||||||
Income (loss) before income taxes | $ | (16,577 | ) | $ | (140,302 | ) | $ | 68,271 | $ | (246,744 | ) | |||||
Equity_Method_Investments
Equity Method Investments | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
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 during the nine months ended September 30, 2014 (in thousands): | ||||||||||||||||
INOVA Geophysical | OceanGeo | Total | ||||||||||||||
Investments at December 31, 2013 | $ | 51,065 | $ | 2,800 | $ | 53,865 | ||||||||||
Equity in earnings (losses) of investments | (9,765 | ) | 738 | (9,027 | ) | |||||||||||
Advances to OceanGeo (prior to consolidation) | — | 3,683 | 3,683 | |||||||||||||
Acquisition of controlling interest (consolidation) of OceanGeo | — | (7,221 | ) | (7,221 | ) | |||||||||||
Equity interest in investees' other comprehensive loss | (1,126 | ) | — | (1,126 | ) | |||||||||||
Investments at September 30, 2014 | $ | 40,174 | $ | — | $ | 40,174 | ||||||||||
INOVA Geophysical — The Company accounts for its 49% interest in INOVA Geophysical as an equity method investment and records its share of earnings and losses of INOVA Geophysical on a one fiscal quarter lag basis. For the three and nine months ended September 30, 2014, the Company recorded its share of losses from INOVA Geophysical of $5.6 million and $9.8 million, respectively, compared to its share of losses for the corresponding periods in 2013, of $0.2 million and $3.0 million, respectively. The following table reflects the summarized financial information for INOVA Geophysical for the three months ended June 30, 2014 and 2013 and the nine-month periods from October 1, 2013 and 2012 to June 30, 2014 and 2013, respectively (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Nine-Month Periods from October 1 through June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net revenues | $ | 11,092 | $ | 61,241 | $ | 77,774 | $ | 142,947 | ||||||||
Gross profit (loss) | $ | (2,164 | ) | $ | 12,243 | $ | 8,020 | $ | 26,378 | |||||||
Income (loss) from operations | $ | (9,851 | ) | $ | 1,658 | $ | (16,094 | ) | $ | (7,103 | ) | |||||
Net loss | $ | (11,425 | ) | $ | (488 | ) | $ | (20,010 | ) | $ | (6,518 | ) | ||||
Related Party Transactions | ||||||||||||||||
For information regarding transactions between the Company and its equity method investees, see Note 14 “Related Party Transactions.” |
Longterm_Debt
Long-term Debt | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Long-term Debt | ' | ||||||||
Long-term Debt | |||||||||
Obligations (in thousands) | September 30, 2014 | December 31, 2013 | |||||||
Senior secured second-priority notes | $ | 175,000 | $ | 175,000 | |||||
Revolving line of credit | — | 35,000 | |||||||
Equipment capital leases | 9,693 | 8,651 | |||||||
Facility capital lease obligation | 791 | 1,501 | |||||||
Total | 185,484 | 220,152 | |||||||
Current portion of long-term debt and lease obligations | (5,901 | ) | (5,906 | ) | |||||
Non-current portion of long-term debt and lease obligations | $ | 179,583 | $ | 214,246 | |||||
New Credit Facility, including Revolving Line of Credit | |||||||||
In August 2014, ION and its subsidiaries, ION Exploration Products (U.S.A.), Inc., I/O Marine Systems, Inc. and GX Technology Corporation (collectively, the “Subsidiary Borrowers” and together with ION, the “Borrowers”), entered into a new credit facility (the “New Credit Facility”). | |||||||||
The terms of the New Credit Facility are set forth in a revolving credit and security agreement dated as of August 22, 2014, among the Borrowers, the lenders party thereto and PNC Bank, National Association (“PNC”), as agent for the lenders. | |||||||||
The New Credit Facility replaced the Company’s prior syndicated credit facility under a credit agreement dated as of March 25, 2010, as amended, by and among ION, the subsidiary guarantors that were parties thereto and China Merchants Bank Co., Ltd., New York Branch (“CMB”), as administrative agent and lender (the “Prior Credit Facility”). | |||||||||
The revolving credit and security agreement contemplates maximum credit facilities of up to $175.0 million in the aggregate, consisting of (i) a revolving facility of up to $125.0 million, to which the lenders have committed $80.0 million and up to an additional $45.0 million of which is subject to the implementation of certain accordion provisions (with availability under such revolving facility subject at all times to a borrowing base and other conditions to borrowing) and (ii) an uncommitted term facility in an aggregate amount of up to $50.0 million on terms to be mutually agreed at a later date and subject to receiving commitments of lenders to such term facility. | |||||||||
The borrowing base for revolving credit borrowings under the New Credit Facility is calculated using a formula based on certain eligible receivables, eligible inventory and other amounts. In addition, the New Credit Facility includes a $15.0 million sublimit for the issuance of documentary and standby letters of credit. As of September 30, 2014, no amounts were drawn under the New Credit Facility. The Company expects that any amounts drawn under the New Credit Facility sooner than one year prior to the maturity of the New Credit Facility (as described below) will be classified as long-term debt. | |||||||||
The New Credit Facility is available for revolving credit borrowings to be used to pay fees and expenses related to the entry into the New Credit Facility and to provide for the Company’s general corporate needs, including the Company’s working capital requirements, capital expenditures, surety deposits and acquisition financing. | |||||||||
The interest rate on revolving credit borrowings under the New Credit Facility will be, at the Company’s option, (i) an alternate base rate equal to the highest of (a) the prime rate of PNC, (b) a federal funds effective rate plus 0.50% or (c) a LIBOR-based rate plus 1.0%, plus an applicable interest margin, or (ii) a LIBOR-based rate, plus an applicable interest margin. The revolving credit indebtedness under the New Credit Facility is scheduled to mature on the earlier of (x) August 22, 2019 or (y) the date which is 90 days prior to the maturity date of the Notes (as defined below) (or such later due date if the Notes have been refinanced). | |||||||||
The obligations of the Borrowers under the New Credit Facility are secured by a first-priority security interest in 100% of the stock of the Subsidiary Borrowers and 65% of the equity interests in ION International Holdings L.P. and by substantially all other assets of the Borrowers. | |||||||||
The revolving credit and security agreement contains covenants that, among other things, restrict the Company, subject to certain exceptions, from incurring additional indebtedness (including capital lease obligations), repurchasing equity, paying dividends or distributions, granting or incurring additional liens on the Company’s properties, pledging shares of the Company’s subsidiaries, entering into certain merger or other change-in-control transactions, entering into transactions with the Company’s affiliates, making certain sales or other dispositions of the Company’s assets, making certain investments, acquiring other businesses and entering into sale-leaseback transactions with respect to the Company’s property. | |||||||||
The revolving credit and security agreement requires compliance with certain financial covenants, including requirements related to ION and the Subsidiary Borrowers, measured on a rolling four quarter basis, (i) maintaining a minimum fixed charge coverage ratio of 1.1 to 1 as of the end of each fiscal quarter during the existence of a covenant testing trigger event, and (ii) not exceeding a maximum senior secured leverage ratio of 3.0 to 1 as of the end of each fiscal quarter. | |||||||||
The fixed charge coverage ratio is defined as the ratio of (i) ION’s EBITDA, minus unfunded capital expenditures made during the relevant period, minus distributions (including tax distributions) and dividends made during the relevant period, minus cash taxes paid during the relevant period, to (ii) certain debt payments made during the relevant period. The senior secured leverage ratio is defined as the ratio of (x) total senior funded debt to (y) ION’s EBITDA (excluding expenditures related directly to the Company’s multi-client data library). As of September 30, 2014, the Company was in compliance with these financial covenants. | |||||||||
The revolving credit and security agreement contains customary event of default provisions (including a “change of control” event affecting ION), the occurrence of which could lead to an acceleration of the Company’s obligations under the revolving credit and security agreement. | |||||||||
In connection with entering into the New Credit Facility, PNC replaced CMB as administrative agent, first lien representative for the first lien secured parties and collateral agent for the first lien secured parties under the Intercreditor Agreement (as defined below). The Company incurred $1.9 million of costs related to entering into the New Credit Facility, which are being amortized over 3.5 years. As a part of the cancellation of the Prior Credit Facility, the Company wrote-off to interest expense $0.3 million of unamortized debt issuance costs. | |||||||||
Senior Secured Second-Priority Notes | |||||||||
In May 2013, the Company sold $175.0 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 of each year during their term. In May 2014, the holders of the Notes exchanged their Notes for a like principal amount of registered Notes with the same terms. | |||||||||
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 12-month period beginning on May 15th of the years indicated below: | |||||||||
Date | Percentage | ||||||||
2015 | 104.06% | ||||||||
2016 | 102.03% | ||||||||
2017 and thereafter | 100.00% | ||||||||
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 New Credit Facility (see “— New Credit Facility, including Revolving Line of Credit” above). The indebtedness under the Notes is effectively junior to the Company’s obligations under the New Credit Facility to the extent of the value of the collateral securing the New Credit 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 Notes contain certain covenants that, among other things, limit the Company’s ability and the ability of its restricted subsidiaries to take certain actions or permit certain conditions to exist during the term of the Notes. These limits apply to making certain investments, incurring additional indebtedness, selling assets, paying dividends, issuing preferred stock, carrying out mergers or consolidations, and certain other transactions. 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 September 30, 2014, the Company was in compliance with these covenants. | |||||||||
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. | |||||||||
OceanGeo Brazil Bank Debt | |||||||||
In connection with the Company’s acquisition of a controlling interest in OceanGeo in the first quarter of 2014, OceanGeo’s existing debt was consolidated into the Company’s accounts. During the three months ended September 30, 2014, OceanGeo repaid this debt in full. |
Net_Income_Loss_per_Share
Net Income (Loss) per Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Net Income (Loss) per Share | ' | |||||||||||||||
Net Income (Loss) per 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 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 issued or reserved for future issuance under outstanding stock options at September 30, 2014 and 2013 was 9,111,725 and 7,081,950, respectively, and the total number of shares of restricted stock and shares reserved for restricted stock units outstanding at September 30, 2014 and 2013 was 1,144,432 and 763,559, respectively. All outstanding stock awards for the three months ended September 30, 2014 and the three and nine months ended September 30, 2013 were anti-dilutive. | ||||||||||||||||
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”). In September 2013, the holder converted all of the outstanding shares of Series D Preferred Stock into 6,065,075 shares of common stock. The then-outstanding shares of Series D Preferred Stock were anti-dilutive for the three and nine months ended September 30, 2013. | ||||||||||||||||
The following table summarizes the computation of basic and diluted net income (loss) per common share (in thousands, except per share amounts): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income (loss) applicable to common shares | $ | (24,541 | ) | $ | (202,096 | ) | $ | 52,626 | $ | (271,693 | ) | |||||
Weighted average number of common shares outstanding | 164,149 | 157,143 | 164,021 | 156,842 | ||||||||||||
Effect of dilutive stock awards | — | — | 305 | — | ||||||||||||
Weighted average number of diluted common shares outstanding | 164,149 | 157,143 | 164,326 | 156,842 | ||||||||||||
Basic net income (loss) per share | $ | (0.15 | ) | $ | (1.29 | ) | $ | 0.32 | $ | (1.73 | ) | |||||
Diluted net income (loss) per share | $ | (0.15 | ) | $ | (1.29 | ) | $ | 0.32 | $ | (1.73 | ) | |||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
The Company maintains a valuation allowance for substantially all of its deferred tax assets. The valuation allowance is calculated in accordance with the provisions of the Financial Accounting Standards Board’s (“FASB”) Accounting Standard Codification Topic 740 “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. In the event the Company’s expectations of future operating results change, the valuation allowance may need to be adjusted upward or downward. As of September 30, 2014, the Company’s unreserved net U.S. deferred tax assets totaled $3.9 million. These existing unreserved deferred tax assets are currently considered to be “more likely than not” realized. | |
The Company’s effective tax rates for the three months ended September 30, 2014 and 2013 were (50.3)% and (40.6)%, respectively, and for the nine months ended September 30, 2014 and 2013 were 20.9% and (7.9)%, respectively. The Company’s effective tax rate for the nine months ended September 30, 2014 was positively impacted by the change in valuation allowance related to the reduction of the legal contingency reserve. The Company’s income tax expense for the three and nine months ended September 30, 2014 relates to income from the Company’s non-U.S. businesses, including OceanGeo. This foreign tax expense has not been offset by the tax benefits on losses within the U.S. and other jurisdictions, from which the Company cannot currently benefit. | |
The Company has approximately $2.2 million of unrecognized tax benefits and does not expect to recognize significant increases in unrecognized tax benefits during the next 12-month period. Interest and penalties, if any, related to unrecognized tax benefits are recorded in income tax expense. | |
As of September 30, 2014, 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 U.S. Internal Revenue Service (“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 an open year. In the Company’s foreign tax jurisdictions, tax returns for 2010 and subsequent years generally remain open to examination. |
Litigation
Litigation | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Litigation | ' |
Litigation | |
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 had infringed several method and apparatus claims contained in four of its United States patents regarding marine seismic streamer steering devices. | |
The trial began in July 2012. A verdict was returned by the jury in August 2012, finding that the Company infringed the claims contained in the four patents by supplying its DigiFIN® lateral streamer control units and the related software from the United States 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 June 2013, the presiding judge entered a Memorandum and Order, ruling 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. In October 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. | |
In April 2014, the judge entered another Order, ruling that lost profits should not have been included in the calculation of supplemental damages in the October 2013 Memorandum and Order and reducing the supplemental damages award in the case from $73.1 million to $9.4 million. In the Order, the judge also further reduced the damages award in the case by $3.0 million to reflect a settlement and license that WesternGeco entered into with a customer of the Company that had purchased and used DigiFIN units that were also included in the damages amounts awarded against the Company. | |
In May 2014, the judge signed and entered a Final Judgment in the amount of $123.8 million. Also, the Final Judgment included an injunction that enjoins the Company, its servants, agents and anyone acting in concert with it, from supplying in or from the United States the DigiFIN product or any parts unique to the DigiFIN product, or any instrumentality no more than colorably different from any of these products or parts, for combination outside of the United States. 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 the DigiFIN product or any parts unique to the DigiFIN product in or from the United States. | |
As previously disclosed, the Company has taken a loss contingency accrual of $123.8 million related to this case. Post-judgment 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 in the case 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. | |
The Company and WesternGeco have each appealed the Final Judgment to the United States Court of Appeals for the Federal Circuit. The Company filed its appeal brief on September 4, 2014. WesternGeco’s appeal brief was filed on October 21, 2014. Oral arguments have not been scheduled as of the date of this Quarterly Report on Form 10-Q. | |
In order to stay the judgment during the appeal, the Company arranged with sureties to post an appeal bond with the trial court on the Company’s behalf in the amount of $120.0 million. The terms of the appeal bond arrangements provide the sureties the contractual right for as long as the bond is outstanding to require the Company to post cash collateral for up to the full amount of the bond; however, the sureties did not require cash collateral upon the posting of the appeal bond. If the sureties exercise their right to require collateral while the appeal bond is outstanding, the Company would intend to utilize a combination of cash on hand and undrawn balances available under the Company’s New Credit Facility. If the Company is required to collateralize the full amount of the bond, the Company might also seek additional debt and/or equity financing. The collateralization of the full amount of the bond could have an adverse effect on the Company’s liquidity. Any requirements that the Company collateralize the appeal bond will reduce its liquidity and may reduce the amount otherwise available to be borrowed under its New Credit Facility. 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. The Company will incur fees of approximately $2.0 million per year to maintain the appeal bond until such time as the appeal bond is no longer required. | |
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. |
Other_Income_Expense_Net
Other Income (Expense), Net | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||||||
Other Income (Expense), Net | ' | |||||||||||||||
Other Income (Expense), Net | ||||||||||||||||
A summary of other income (expense), net is as follows (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Reduction of (accrual for) loss contingency related to legal proceedings (Note 8) | $ | — | $ | (71,776 | ) | $ | 69,557 | $ | (181,776 | ) | ||||||
Gain on sale of product line(1) | — | — | 6,522 | — | ||||||||||||
Gain on sale of a cost-method investment | — | — | — | 3,591 | ||||||||||||
Other expense, net | (622 | ) | (2,525 | ) | (2,109 | ) | (2,207 | ) | ||||||||
Total other income (expense), net | $ | (622 | ) | $ | (74,301 | ) | $ | 73,970 | $ | (180,392 | ) | |||||
(1) | In May 2014, the Company sold its Source product line for approximately $14.4 million, net of transaction fees, recording a gain of approximately $6.5 million before taxes. As a part of this transaction, the Company reduced Goodwill on the Marine reporting unit by $5.1 million. The historical results of this product line have not been material to the Company’s results of operations. |
Details_of_Selected_Balance_Sh
Details of Selected Balance Sheet Accounts Details of Selected Balance Sheet Accounts | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||
Details of Selected Balance Sheet Accounts | ' | |||||||
Details of Selected Balance Sheet Accounts | ||||||||
Inventories | ||||||||
A summary of inventories is as follows (in thousands): | September 30, 2014 | December 31, 2013 | ||||||
Raw materials and subassemblies | $ | 40,970 | $ | 54,168 | ||||
Work-in-process | 11,879 | 2,297 | ||||||
Finished goods | 26,977 | 33,263 | ||||||
Reserve for excess and obsolete inventories | (24,450 | ) | (32,555 | ) | ||||
Total | $ | 55,376 | $ | 57,173 | ||||
Other Long-term Liabilities | ||||||||
A summary of other long-term liabilities is as follows (in thousands): | September 30, 2014 | December 31, 2013 | ||||||
Accrual for loss contingency related to legal proceedings (Note 8) | $ | 123,770 | $ | 193,327 | ||||
Deferred rents | 12,277 | 8,822 | ||||||
Facility abandonment restructuring accrual | 4,211 | 4,837 | ||||||
Other long-term liabilities | 2,518 | 3,616 | ||||||
Total | $ | 142,776 | $ | 210,602 | ||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||
A summary of changes in accumulated other comprehensive loss by component is as follows (in thousands): | |||||||||||||||||
Foreign currency translation adjustments | Equity interest in investees’ other comprehensive income (loss) | Other changes in other comprehensive income (loss) | Total | ||||||||||||||
Accumulated other comprehensive loss at December 31, 2013 | $ | (11,923 | ) | $ | 841 | $ | (56 | ) | $ | (11,138 | ) | ||||||
Net current-period other comprehensive income (loss) | 489 | (1,125 | ) | 54 | (582 | ) | |||||||||||
Accumulated other comprehensive loss at September 30, 2014 | $ | (11,434 | ) | $ | (284 | ) | $ | (2 | ) | $ | (11,720 | ) | |||||
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information and Non-Cash Activity Supplemental Cash Flow Information and Non-Cash Activity | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||
Supplemental Cash Flow Information and Non-cash Activity | ' | |||||||
Supplemental Cash Flow Information and Non-cash Activity | ||||||||
A summary of non-cash items from investing and financing activities is as follows (in thousands): | ||||||||
Nine Months Ended September 30, | ||||||||
2014 | 2013 | |||||||
Cash paid during the period for: | ||||||||
Interest | $ | 9,087 | $ | 2,042 | ||||
Income taxes | $ | 12,008 | $ | 13,778 | ||||
Non-cash items from investing and financing activities: | ||||||||
Purchases of computer equipment financed through capital leases | $ | 5,768 | $ | 5,962 | ||||
Leasehold improvement paid by landlord | $ | — | $ | 5,000 | ||||
Conversion of investment in a convertible note to equity | $ | 3,151 | $ | 6,765 | ||||
Transfer of inventory to property, plant, equipment and seismic rental equipment | $ | 3,039 | $ | 1,471 | ||||
Investment in multi-client data library financed through trade payables | $ | 1,298 | $ | — | ||||
Purchases of property, plant, and equipment and seismic rental equipment financed through accounts payable | $ | — | $ | 835 | ||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2014 | |
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 Note. In March 2012, the Company and a privately owned U.S.-based technology company entered into an agreement for the Company to make available to the technology company 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 conversion of any or all of the outstanding balance of the promissory note under the credit facility into an amount of common shares of the technology company up to 19.5% of the total outstanding shares of the company. | |
In September 2014, the Company converted $3.2 million of the balance of the note into 688,000 common shares of the investee, which resulted in a post-conversion equity ownership percentage interest in the investee of 19.5%. This investment continues to be accounted for as a cost method investment and is included in Other assets. Prior to conversion, the note and accrued interest had a fair value that approximated its book value resulting in no realized gain or loss on this conversion. 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 a market approach, including terms and likelihood of an investment event. | |
As of September 30, 2014, $1.1 million of principal and accrued interest remains outstanding under this credit arrangement and the fair value of this investment approximated its book value, including the 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 September 30, 2014 and December 31, 2013 were $185.5 million and $220.2 million, respectively, compared to its fair values of $176.7 million and $190.4 million as of September 30, 2014 and December 31, 2013, respectively. The fair value of the long-term debt was calculated using Level 1 inputs, including an active market price. | |
The Company’s cost method investment 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. |
Related_Party_Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
Related Party Transactions | |
BGP Inc. (“BGP”) owned approximately 14.5% of the Company’s outstanding common stock as of September 30, 2014. For the nine months ended September 30, 2014 and 2013, the Company recorded revenues from BGP of $5.1 million and $5.3 million, respectively. Total receivables due from BGP were $1.0 million at September 30, 2014. | |
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 originally scheduled to mature on September 30, 2013. The maturity date of the promissory note has since been extended to December 31, 2014. 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 2013, the Company advanced the full principal amount of $10.0 million to INOVA Geophysical under the promissory note. INOVA Geophysical has repaid a total of $6.0 million, of which $4.0 million remains outstanding at September 30, 2014. This balance is included in Prepaid expenses and other current assets. | |
With the Prior Credit Facility being replaced by the New Credit Facility in August 2014, INOVA no longer provides a bank stand-by letter of credit as credit support for the Company’s obligations under the New Credit Facility. For further information regarding our New Credit Facility, see Note 5 “Long-term Debt.” |
Polarcus_Alliance
Polarcus Alliance | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Polarcus Alliance | ' |
Polarcus Alliance | |
In June 2013, the Company entered into an alliance (the “Polarcus Alliance”) with Polarcus MC Ltd., a Cayman Islands limited liability company, (“Polarcus”) in order to collaborate on 3D multi-client data library projects. The premise of the Polarcus Alliance is for towed-streamer seismic services and other related services to be provided by Polarcus and data processing and reservoir services to be provided by the Company. Under the Polarcus Alliance, each party can identify and propose potential project opportunities to the other party, which the other party then has the option to propose amendments to the potential project and accept or reject participation in the proposed project. | |
Under the Polarcus Alliance, the Company is currently participating in one project, offshore Ireland, that was proposed by Polarcus and accepted by the Company. Acquisition started and completed in the third quarter of 2014. This project is currently in the data processing phase. The transactions related to this project are included within the Company’s consolidated results of operations, financial position and cash flows and are immaterial. | |
The activities of each project under the Polarcus Alliance are accounted for consistent with our accounting policies related to the Company’s multi-client data library, except that the Company only records revenue at the Company’s agreed sharing ratio of each project and capitalizes its agreed share of the direct project costs. When the current project is complete, the Company will have increased its multi-client data library by its share of the total direct project costs. | |
The Company periodically settles any differences between actual payments for direct project costs made by each company and the agreed sharing ratio on a specific project through cash payments between the companies. As a result, the Company may build up a payable and/or receivable balance with Polarcus to be settled at a later date. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Changes and Error Corrections [Abstract] | ' |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
Revenue Recognition — In May 2014, the FASB and the International Accounting Standards Board (“IASB”) jointly issued new accounting guidance for recognition of revenue. This new guidance replaces virtually all existing U.S. GAAP and IFRS guidance on revenue recognition. The new guidance is effective for fiscal years beginning after December 15, 2016. This new guidance applies to all periods presented. Therefore, when the Company issues its financial statements on Forms 10-Q and 10-K for periods included in its year ended December 31, 2017, its comparative periods that are presented from the years ended December 31, 2015 and 2016, must be retrospectively presented in compliance with this new guidance. Early adoption is not allowed for U.S. GAAP. The new guidance requires companies to make more estimates and use more judgment than under current accounting guidance. The Company is currently evaluating (i) the two allowed adoption methods to determine which method it plans to use for retrospective presentation of comparative periods and (ii) whether the implementation of this new guidance will have a material impact on the Company’s consolidated financial position or results of operations for the periods presented. | |
Reporting Discontinued Operations — In April 2014, the FASB issued amendments to guidance for reporting discontinued operations and disposals of components of an entity. The amended guidance requires that a disposal representing a strategic shift that has (or will have) a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. The amendments also expand the disclosure requirements for discontinued operations and add new disclosures for individually significant dispositions that do not qualify as discontinued operations. The amendments are effective prospectively for fiscal years, and interim reporting periods within those years, beginning after December 15, 2014 (early adoption is permitted only for disposals that have not been previously reported). The implementation of the amended guidance is not expected to have a material impact on the Company’s consolidated financial position or results of operations. |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||||||||||
Condensed Consolidating Financial Information | ' | |||||||||||||||||||
Condensed Consolidating Financial Information | ||||||||||||||||||||
In 2013, the Company sold $175.0 million aggregate principal amount of its 8.125% Senior Secured Second-Priority Notes due 2018. 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 Guarantors (in each case, reflecting investments in subsidiaries utilizing the equity method of accounting). | |||||||||||||||||||
• | All other subsidiaries of ION Geophysical Corporation that are not Guarantors. | |||||||||||||||||||
• | 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. | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Balance Sheet | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 84,294 | $ | — | $ | 45,553 | $ | — | $ | 129,847 | ||||||||||
Accounts receivable, net | 1,529 | 36,502 | 48,707 | — | 86,738 | |||||||||||||||
Unbilled receivables | — | 42,059 | 15,418 | — | 57,477 | |||||||||||||||
Inventories | — | 3,151 | 52,225 | — | 55,376 | |||||||||||||||
Prepaid expenses and other current assets | 11,585 | 3,500 | 13,138 | (1,770 | ) | 26,453 | ||||||||||||||
Total current assets | 97,408 | 85,212 | 175,041 | (1,770 | ) | 355,891 | ||||||||||||||
Deferred income tax asset | 6,499 | 6,675 | 760 | 406 | 14,340 | |||||||||||||||
Property, plant, equipment and seismic rental equipment, net | 6,547 | 28,832 | 24,986 | — | 60,365 | |||||||||||||||
Multi-client data library, net | — | 219,251 | 24,666 | — | 243,917 | |||||||||||||||
Equity method investments | 40,174 | — | — | — | 40,174 | |||||||||||||||
Investment in subsidiaries | 796,608 | 280,302 | — | (1,076,910 | ) | — | ||||||||||||||
Goodwill | — | 21,884 | 28,501 | — | 50,385 | |||||||||||||||
Intangible assets, net | — | 6,752 | 2,439 | — | 9,191 | |||||||||||||||
Intercompany receivables | 35,192 | — | — | (35,192 | ) | — | ||||||||||||||
Other assets | 17,624 | 197 | 1,661 | — | 19,482 | |||||||||||||||
Total assets | $ | 1,000,052 | $ | 649,105 | $ | 258,054 | $ | (1,113,466 | ) | $ | 793,745 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Current maturities of long-term debt | $ | — | $ | 4,901 | $ | 1,000 | $ | — | $ | 5,901 | ||||||||||
Accounts payable | 1,886 | 12,443 | 16,337 | — | 30,666 | |||||||||||||||
Accrued expenses | 14,214 | 42,489 | 19,988 | (1,083 | ) | 75,608 | ||||||||||||||
Accrued multi-client data library royalties | — | 23,800 | 616 | — | 24,416 | |||||||||||||||
Deferred revenue | — | 13,707 | 2,788 | — | 16,495 | |||||||||||||||
Total current liabilities | 16,100 | 97,340 | 40,729 | (1,083 | ) | 153,086 | ||||||||||||||
Long-term debt, net of current maturities | 175,000 | 4,444 | 139 | — | 179,583 | |||||||||||||||
Intercompany payables | 490,127 | 34,963 | 229 | (525,319 | ) | — | ||||||||||||||
Other long-term liabilities | 2,829 | 130,775 | 9,455 | (283 | ) | 142,776 | ||||||||||||||
Total liabilities | 684,056 | 267,522 | 50,552 | (526,685 | ) | 475,445 | ||||||||||||||
Redeemable noncontrolling interests | — | — | 2,086 | — | 2,086 | |||||||||||||||
Equity: | ||||||||||||||||||||
Common stock | 1,642 | 290,460 | 5,787 | (296,247 | ) | 1,642 | ||||||||||||||
Additional paid-in capital | 886,170 | 175,005 | 247,585 | (422,590 | ) | 886,170 | ||||||||||||||
Accumulated earnings (deficit) | (553,531 | ) | 334,625 | 28,126 | (362,751 | ) | (553,531 | ) | ||||||||||||
Accumulated other comprehensive income (loss) | (11,720 | ) | 6,736 | (11,416 | ) | 4,680 | (11,720 | ) | ||||||||||||
Due from ION Geophysical Corporation | — | (425,243 | ) | (64,884 | ) | 490,127 | — | |||||||||||||
Treasury stock | (6,565 | ) | — | — | — | (6,565 | ) | |||||||||||||
Total stockholders’ equity | 315,996 | 381,583 | 205,198 | (586,781 | ) | 315,996 | ||||||||||||||
Noncontrolling interests | — | — | 218 | — | 218 | |||||||||||||||
Total equity | 315,996 | 381,583 | 205,416 | (586,781 | ) | 316,214 | ||||||||||||||
Total liabilities and equity | $ | 1,000,052 | $ | 649,105 | $ | 258,054 | $ | (1,113,466 | ) | $ | 793,745 | |||||||||
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 | |||||||||||||||
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 | |||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Net revenues | $ | — | $ | 33,344 | $ | 73,947 | $ | (751 | ) | $ | 106,540 | |||||||||
Cost of sales | — | 32,447 | 45,621 | (751 | ) | 77,317 | ||||||||||||||
Gross profit | — | 897 | 28,326 | — | 29,223 | |||||||||||||||
Total operating expenses | 7,599 | 15,357 | 11,616 | — | 34,572 | |||||||||||||||
Income (loss) from operations | (7,599 | ) | (14,460 | ) | 16,710 | — | (5,349 | ) | ||||||||||||
Interest expense, net | (4,931 | ) | (58 | ) | (59 | ) | — | (5,048 | ) | |||||||||||
Intercompany interest, net | (90 | ) | 566 | (476 | ) | — | — | |||||||||||||
Equity in earnings (losses) of investments | (12,131 | ) | 8,500 | — | (1,927 | ) | (5,558 | ) | ||||||||||||
Other income (expense) | (17 | ) | 21 | (626 | ) | — | (622 | ) | ||||||||||||
Net income (loss) before income taxes | (24,768 | ) | (5,431 | ) | 15,549 | (1,927 | ) | (16,577 | ) | |||||||||||
Income tax expense (benefit) | (227 | ) | 800 | 7,772 | — | 8,345 | ||||||||||||||
Net income (loss) | (24,541 | ) | (6,231 | ) | 7,777 | (1,927 | ) | (24,922 | ) | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 381 | — | 381 | |||||||||||||||
Net income (loss) applicable to common shares | $ | (24,541 | ) | $ | (6,231 | ) | $ | 8,158 | $ | (1,927 | ) | $ | (24,541 | ) | ||||||
Comprehensive net income (loss) | $ | (26,407 | ) | $ | (8,838 | ) | $ | 5,168 | $ | 3,289 | $ | (26,788 | ) | |||||||
Comprehensive income attributable to noncontrolling interest | — | — | 381 | — | 381 | |||||||||||||||
Comprehensive net income (loss) attributable to ION | $ | (26,407 | ) | $ | (8,838 | ) | $ | 5,549 | $ | 3,289 | $ | (26,407 | ) | |||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Net revenues | $ | — | $ | 33,039 | $ | 47,516 | $ | (717 | ) | $ | 79,838 | |||||||||
Cost of sales | — | 46,983 | 48,676 | (717 | ) | 94,942 | ||||||||||||||
Gross loss | — | (13,944 | ) | (1,160 | ) | — | (15,104 | ) | ||||||||||||
Total operating expenses | 8,579 | 13,648 | 19,197 | — | 41,424 | |||||||||||||||
Loss from operations | (8,579 | ) | (27,592 | ) | (20,357 | ) | — | (56,528 | ) | |||||||||||
Interest expense, net | (4,185 | ) | (51 | ) | (45 | ) | — | (4,281 | ) | |||||||||||
Intercompany interest, net | (554 | ) | 1,497 | (943 | ) | — | — | |||||||||||||
Equity in losses of investments | (115,911 | ) | (29,066 | ) | (5,030 | ) | 144,815 | (5,192 | ) | |||||||||||
Other expense | (1,562 | ) | (71,886 | ) | (853 | ) | — | (74,301 | ) | |||||||||||
Net loss before income taxes | (130,791 | ) | (127,098 | ) | (27,228 | ) | 144,815 | (140,302 | ) | |||||||||||
Income tax expense (benefit) | 65,967 | (12,459 | ) | 3,446 | — | 56,954 | ||||||||||||||
Net loss | (196,758 | ) | (114,639 | ) | (30,674 | ) | 144,815 | (197,256 | ) | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 498 | — | 498 | |||||||||||||||
Net loss attributable to ION | (196,758 | ) | (114,639 | ) | (30,176 | ) | 144,815 | (196,758 | ) | |||||||||||
Preferred stock dividends | 5,338 | — | — | — | 5,338 | |||||||||||||||
Net loss applicable to common shares | $ | (202,096 | ) | $ | (114,639 | ) | $ | (30,176 | ) | $ | 144,815 | $ | (202,096 | ) | ||||||
Comprehensive net loss | $ | (194,934 | ) | $ | (115,371 | ) | $ | (24,404 | ) | $ | 139,277 | $ | (195,432 | ) | ||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 498 | — | 498 | |||||||||||||||
Comprehensive net loss attributable to ION | $ | (194,934 | ) | $ | (115,371 | ) | $ | (23,906 | ) | $ | 139,277 | $ | (194,934 | ) | ||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Net revenues | $ | — | $ | 159,347 | $ | 215,400 | $ | (2,029 | ) | $ | 372,718 | |||||||||
Cost of sales | — | 117,461 | 132,981 | (2,029 | ) | 248,413 | ||||||||||||||
Gross profit | — | 41,886 | 82,419 | — | 124,305 | |||||||||||||||
Total operating expenses | 24,138 | 45,938 | 36,122 | — | 106,198 | |||||||||||||||
Income (loss) from operations | (24,138 | ) | (4,052 | ) | 46,297 | — | 18,107 | |||||||||||||
Interest expense, net | (13,962 | ) | (148 | ) | (669 | ) | — | (14,779 | ) | |||||||||||
Intercompany interest, net | (234 | ) | 1,519 | (1,285 | ) | — | — | |||||||||||||
Equity in earnings (losses) of investments | 92,195 | 32,615 | 738 | (134,575 | ) | (9,027 | ) | |||||||||||||
Other income (expense) | (1,231 | ) | 73,504 | 1,697 | — | 73,970 | ||||||||||||||
Net income before income taxes | 52,630 | 103,438 | 46,778 | (134,575 | ) | 68,271 | ||||||||||||||
Income tax expense | 4 | 999 | 13,258 | — | 14,261 | |||||||||||||||
Net income | 52,626 | 102,439 | 33,520 | (134,575 | ) | 54,010 | ||||||||||||||
Net income attributable to noncontrolling interests | — | — | (1,384 | ) | — | (1,384 | ) | |||||||||||||
Net income applicable to common shares | $ | 52,626 | $ | 102,439 | $ | 32,136 | $ | (134,575 | ) | $ | 52,626 | |||||||||
Comprehensive net income | $ | 52,044 | $ | 102,957 | $ | 34,024 | $ | (135,597 | ) | $ | 53,428 | |||||||||
Comprehensive income attributable to noncontrolling interest | — | — | (1,384 | ) | — | (1,384 | ) | |||||||||||||
Comprehensive net income attributable to ION | $ | 52,044 | $ | 102,957 | $ | 32,640 | $ | (135,597 | ) | $ | 52,044 | |||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Net revenues | $ | — | $ | 183,414 | $ | 148,120 | $ | (1,044 | ) | $ | 330,490 | |||||||||
Cost of sales | — | 162,838 | 112,225 | (1,044 | ) | 274,019 | ||||||||||||||
Gross profit | — | 20,576 | 35,895 | — | 56,471 | |||||||||||||||
Total operating expenses | 23,995 | 44,260 | 36,051 | — | 104,306 | |||||||||||||||
Loss from operations | (23,995 | ) | (23,684 | ) | (156 | ) | — | (47,835 | ) | |||||||||||
Interest expense, net | (7,926 | ) | (18 | ) | (159 | ) | — | (8,103 | ) | |||||||||||
Intercompany interest, net | (344 | ) | 951 | (607 | ) | — | — | |||||||||||||
Equity in losses of investments | (217,748 | ) | (19,335 | ) | (7,376 | ) | 234,045 | (10,414 | ) | |||||||||||
Other income (expense) | 2,335 | (181,907 | ) | (820 | ) | — | (180,392 | ) | ||||||||||||
Net loss before income taxes | (247,678 | ) | (223,993 | ) | (9,118 | ) | 234,045 | (246,744 | ) | |||||||||||
Income tax expense (benefit) | 18,001 | (11,231 | ) | 12,680 | — | 19,450 | ||||||||||||||
Net loss | (265,679 | ) | (212,762 | ) | (21,798 | ) | 234,045 | (266,194 | ) | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 515 | — | 515 | |||||||||||||||
Net loss attributable to ION | (265,679 | ) | (212,762 | ) | (21,283 | ) | 234,045 | (265,679 | ) | |||||||||||
Preferred stock dividends | 6,014 | — | — | — | 6,014 | |||||||||||||||
Net loss applicable to common shares | $ | (271,693 | ) | $ | (212,762 | ) | $ | (21,283 | ) | $ | 234,045 | $ | (271,693 | ) | ||||||
Comprehensive net loss | $ | (267,093 | ) | $ | (213,491 | ) | $ | (22,412 | ) | $ | 235,388 | $ | (267,608 | ) | ||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 515 | — | 515 | |||||||||||||||
Comprehensive net loss attributable to ION | $ | (267,093 | ) | $ | (213,491 | ) | $ | (21,897 | ) | $ | 235,388 | $ | (267,093 | ) | ||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
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 | $ | (40,896 | ) | $ | 63,588 | $ | 64,284 | $ | — | $ | 86,976 | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Cash invested in multi-client data library | — | (57,192 | ) | (148 | ) | — | (57,340 | ) | ||||||||||||
Purchase of property, plant, equipment and seismic rental equipment | (1,501 | ) | (4,165 | ) | (1,176 | ) | — | (6,842 | ) | |||||||||||
Repayment of advances to INOVA Geophysical | 1,000 | — | — | — | 1,000 | |||||||||||||||
Investment in and advances to OceanGeo B.V. | — | — | (3,683 | ) | — | (3,683 | ) | |||||||||||||
Cash of OceanGeo B.V. upon acquiring a controlling interest | — | — | 609 | — | 609 | |||||||||||||||
Net proceeds from sale of Source product line | — | 9,881 | 4,513 | — | 14,394 | |||||||||||||||
Other investing activities | 579 | — | 349 | — | 928 | |||||||||||||||
Net cash provided by (used in) investing activities | 78 | (51,476 | ) | 464 | — | (50,934 | ) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Payments under revolving line of credit | (50,000 | ) | — | — | — | (50,000 | ) | |||||||||||||
Borrowings under revolving line of credit | 15,000 | — | — | — | 15,000 | |||||||||||||||
Payments on notes payable and long-term debt | — | (4,470 | ) | (7,267 | ) | — | (11,737 | ) | ||||||||||||
Costs associated with issuance of debt | (2,126 | ) | — | — | — | (2,126 | ) | |||||||||||||
Capital contribution from affiliate | — | — | — | — | — | |||||||||||||||
Intercompany lending | 37,114 | (7,642 | ) | (29,472 | ) | — | — | |||||||||||||
Acquisition of non-controlling interest | — | — | (6,000 | ) | (6,000 | ) | ||||||||||||||
Proceeds from employee stock purchases and exercise of stock options | 577 | — | — | — | 577 | |||||||||||||||
Other financing activities | (154 | ) | — | — | — | (154 | ) | |||||||||||||
Net cash provided by (used in) financing activities | 411 | (12,112 | ) | (42,739 | ) | — | (54,440 | ) | ||||||||||||
Effect of change in foreign currency exchange rates on cash and cash equivalents | — | — | 189 | — | 189 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | (40,407 | ) | — | 22,198 | — | (18,209 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | 124,701 | — | 23,355 | — | 148,056 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 84,294 | $ | — | $ | 45,553 | $ | — | $ | 129,847 | ||||||||||
Nine Months Ended September 30, 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 | $ | (46,655 | ) | $ | 66,645 | $ | 58,525 | $ | — | $ | 78,515 | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Cash invested in multi-client data library | — | (83,884 | ) | (2,462 | ) | — | (86,346 | ) | ||||||||||||
Purchase of property, plant, equipment and seismic rental equipment | (1,965 | ) | (7,132 | ) | (4,442 | ) | — | (13,539 | ) | |||||||||||
Net advances to INOVA Geophysical | (8,000 | ) | — | — | — | (8,000 | ) | |||||||||||||
Investment in and advances to OceanGeo B.V. | — | — | (9,500 | ) | — | (9,500 | ) | |||||||||||||
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 | — | 76 | — | — | 76 | |||||||||||||||
Net cash used in investing activities | (13,510 | ) | (98,837 | ) | (16,404 | ) | 13,592 | (115,159 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from issuance of notes | 175,000 | — | — | — | 175,000 | |||||||||||||||
Payments under revolving line of credit | (97,250 | ) | — | — | — | (97,250 | ) | |||||||||||||
Payments on notes payable and long-term debt | — | (2,516 | ) | (780 | ) | — | (3,296 | ) | ||||||||||||
Cost associated with issuance of notes | (6,731 | ) | — | — | — | (6,731 | ) | |||||||||||||
Capital contribution from affiliate | — | 5,695 | 7,897 | (13,592 | ) | — | ||||||||||||||
Intercompany lending | 2,371 | 29,013 | (31,384 | ) | — | — | ||||||||||||||
Payment of preferred dividends | (6,014 | ) | — | — | — | (6,014 | ) | |||||||||||||
Proceeds from employee stock purchases and exercise of stock options | 2,367 | — | — | — | 2,367 | |||||||||||||||
Other financing activities | 790 | — | — | — | 790 | |||||||||||||||
Net cash provided by (used in) financing activities | 70,533 | 32,192 | (24,267 | ) | (13,592 | ) | 64,866 | |||||||||||||
Effect of change in foreign currency exchange rates on cash and cash equivalents | — | — | (608 | ) | — | (608 | ) | |||||||||||||
Net increase in cash and cash equivalents | 10,368 | — | 17,246 | — | 27,614 | |||||||||||||||
Cash and cash equivalents at beginning of period | 30,343 | — | 30,628 | 60,971 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 40,711 | $ | — | $ | 47,874 | $ | — | $ | 88,585 | ||||||||||
Acquisition_of_OceanGeo_Tables
Acquisition of OceanGeo (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | ' | ||||||||||||
The following table summarizes the fair value assigned to the assets acquired and liabilities assumed, as well as the noncontrolling interest, at the acquisition date (in thousands): | |||||||||||||
Estimated Fair Value of Assets Acquired and Liabilities Assumed: | |||||||||||||
Cash and cash equivalents | $ | 609 | |||||||||||
Accounts receivable | 9,247 | ||||||||||||
Prepaid expenses and other current assets | 1,433 | ||||||||||||
Property, plant, equipment and seismic rental equipment, net | 18,474 | ||||||||||||
Other assets | 2,227 | ||||||||||||
Total identifiable assets | 31,990 | ||||||||||||
Accounts payable and accrued liabilities | (13,464 | ) | |||||||||||
Bank loans | (6,135 | ) | |||||||||||
Other liabilities | (1,026 | ) | |||||||||||
Net assets | 11,365 | ||||||||||||
Noncontrolling interest | (3,410 | ) | |||||||||||
Total consideration | $ | 7,955 | |||||||||||
Business Acquisition, Pro Forma Information | ' | ||||||||||||
Amounts presented below are in thousands, except for the per share amounts: | |||||||||||||
Pro forma Consolidated ION Income Statement Information | Three Months Ended September 30, 2013 | Nine Months Ended September 30, | |||||||||||
2014 | 2013 | ||||||||||||
Net revenues | $ | 79,838 | $ | 381,902 | $ | 362,157 | |||||||
Income (loss) from operations | $ | (72,757 | ) | $ | 22,492 | $ | (66,997 | ) | |||||
Net income (loss) | $ | (214,305 | ) | $ | 55,838 | $ | (277,612 | ) | |||||
Net income (loss) attributable to ION | $ | (213,807 | ) | $ | 53,684 | $ | (277,097 | ) | |||||
Basic net income (loss) per common share | $ | (1.40 | ) | $ | 0.33 | $ | (1.81 | ) | |||||
Diluted net income (loss) per common share | $ | (1.40 | ) | $ | 0.33 | $ | (1.81 | ) | |||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Summary of Segment Information | ' | |||||||||||||||
A summary of segment information is as follows (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net revenues: | ||||||||||||||||
Solutions: | ||||||||||||||||
New Venture | $ | 18,446 | $ | 11,945 | $ | 76,499 | $ | 93,630 | ||||||||
Data Library | 3,262 | 5,184 | 30,104 | 36,153 | ||||||||||||
Total multi-client revenues | 21,708 | 17,129 | 106,603 | 129,783 | ||||||||||||
Data Processing | 24,151 | 26,318 | 91,131 | 91,453 | ||||||||||||
Total | $ | 45,859 | $ | 43,447 | $ | 197,734 | $ | 221,236 | ||||||||
Systems: | ||||||||||||||||
Towed Streamer | $ | 13,666 | $ | 15,342 | $ | 35,782 | $ | 41,461 | ||||||||
Ocean Bottom Equipment | — | 159 | — | 7,307 | ||||||||||||
Other | 11,029 | 10,766 | 36,166 | 33,194 | ||||||||||||
Total | $ | 24,695 | $ | 26,267 | $ | 71,948 | $ | 81,962 | ||||||||
Software: | ||||||||||||||||
Software Systems | $ | 9,922 | $ | 8,892 | $ | 28,384 | $ | 24,297 | ||||||||
Services | 1,088 | 1,232 | 3,198 | 2,995 | ||||||||||||
Total | $ | 11,010 | $ | 10,124 | $ | 31,582 | $ | 27,292 | ||||||||
Ocean Bottom Services | $ | 24,976 | $ | — | $ | 71,454 | $ | — | ||||||||
Total | $ | 106,540 | $ | 79,838 | $ | 372,718 | $ | 330,490 | ||||||||
Gross profit (loss): | ||||||||||||||||
Solutions | $ | 5,927 | $ | (8,487 | ) | $ | 51,207 | $ | 33,600 | |||||||
Systems | 10,123 | (13,987 | ) | 31,288 | 3,195 | |||||||||||
Software | 8,326 | 7,370 | 23,388 | 19,676 | ||||||||||||
Ocean Bottom Services | 4,847 | — | 18,422 | — | ||||||||||||
Total | $ | 29,223 | $ | (15,104 | ) | $ | 124,305 | $ | 56,471 | |||||||
Gross margin: | ||||||||||||||||
Solutions | 13 | % | (20 | )% | 26 | % | 15 | % | ||||||||
Systems | 41 | % | (53 | )% | 43 | % | 4 | % | ||||||||
Software | 76 | % | 73 | % | 74 | % | 72 | % | ||||||||
Ocean Bottom Services | 19 | % | — | % | 26 | % | — | % | ||||||||
Total | 27 | % | (19 | )% | 33 | % | 17 | % | ||||||||
Income (loss) from operations: | ||||||||||||||||
Solutions | $ | (5,960 | ) | $ | (18,163 | ) | $ | 11,733 | $ | 215 | ||||||
Systems | 2,917 | (23,610 | ) | 9,835 | (21,172 | ) | ||||||||||
Software | 6,227 | 6,280 | 16,985 | 16,396 | ||||||||||||
Ocean Bottom Services | 1,677 | — | 12,333 | — | ||||||||||||
Corporate and other | (10,210 | ) | (21,035 | ) | (32,779 | ) | (43,274 | ) | ||||||||
Income (loss) from operations | (5,349 | ) | (56,528 | ) | 18,107 | (47,835 | ) | |||||||||
Interest expense, net | (5,048 | ) | (4,281 | ) | (14,779 | ) | (8,103 | ) | ||||||||
Equity in losses of investments | (5,558 | ) | (5,192 | ) | (9,027 | ) | (10,414 | ) | ||||||||
Other income (expense), net | (622 | ) | (74,301 | ) | 73,970 | (180,392 | ) | |||||||||
Income (loss) before income taxes | $ | (16,577 | ) | $ | (140,302 | ) | $ | 68,271 | $ | (246,744 | ) | |||||
Equity_Method_Investments_Tabl
Equity Method Investments (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ' | |||||||||||||||
Schedule of Change in Equity Method Investments | ' | |||||||||||||||
The following table reflects the change in the Company’s equity method investments during the nine months ended September 30, 2014 (in thousands): | ||||||||||||||||
INOVA Geophysical | OceanGeo | Total | ||||||||||||||
Investments at December 31, 2013 | $ | 51,065 | $ | 2,800 | $ | 53,865 | ||||||||||
Equity in earnings (losses) of investments | (9,765 | ) | 738 | (9,027 | ) | |||||||||||
Advances to OceanGeo (prior to consolidation) | — | 3,683 | 3,683 | |||||||||||||
Acquisition of controlling interest (consolidation) of OceanGeo | — | (7,221 | ) | (7,221 | ) | |||||||||||
Equity interest in investees' other comprehensive loss | (1,126 | ) | — | (1,126 | ) | |||||||||||
Investments at September 30, 2014 | $ | 40,174 | $ | — | $ | 40,174 | ||||||||||
Equity Method Investments Summarized Financial Information | ' | |||||||||||||||
The following table reflects the summarized financial information for INOVA Geophysical for the three months ended June 30, 2014 and 2013 and the nine-month periods from October 1, 2013 and 2012 to June 30, 2014 and 2013, respectively (in thousands): | ||||||||||||||||
Three Months Ended June 30, | Nine-Month Periods from October 1 through June 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net revenues | $ | 11,092 | $ | 61,241 | $ | 77,774 | $ | 142,947 | ||||||||
Gross profit (loss) | $ | (2,164 | ) | $ | 12,243 | $ | 8,020 | $ | 26,378 | |||||||
Income (loss) from operations | $ | (9,851 | ) | $ | 1,658 | $ | (16,094 | ) | $ | (7,103 | ) | |||||
Net loss | $ | (11,425 | ) | $ | (488 | ) | $ | (20,010 | ) | $ | (6,518 | ) |
Longterm_Debt_Tables
Long-term Debt (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Debt Disclosure [Abstract] | ' | ||||||||
Obligations | ' | ||||||||
Obligations (in thousands) | September 30, 2014 | December 31, 2013 | |||||||
Senior secured second-priority notes | $ | 175,000 | $ | 175,000 | |||||
Revolving line of credit | — | 35,000 | |||||||
Equipment capital leases | 9,693 | 8,651 | |||||||
Facility capital lease obligation | 791 | 1,501 | |||||||
Total | 185,484 | 220,152 | |||||||
Current portion of long-term debt and lease obligations | (5,901 | ) | (5,906 | ) | |||||
Non-current portion of long-term debt and lease obligations | $ | 179,583 | $ | 214,246 | |||||
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 12-month period beginning on May 15th of the years indicated below: | |||||||||
Date | Percentage | ||||||||
2015 | 104.06% | ||||||||
2016 | 102.03% | ||||||||
2017 and thereafter | 100.00% |
Net_Income_per_Share_Tables
Net Income per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Computation of basic and diluted net income 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): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income (loss) applicable to common shares | $ | (24,541 | ) | $ | (202,096 | ) | $ | 52,626 | $ | (271,693 | ) | |||||
Weighted average number of common shares outstanding | 164,149 | 157,143 | 164,021 | 156,842 | ||||||||||||
Effect of dilutive stock awards | — | — | 305 | — | ||||||||||||
Weighted average number of diluted common shares outstanding | 164,149 | 157,143 | 164,326 | 156,842 | ||||||||||||
Basic net income (loss) per share | $ | (0.15 | ) | $ | (1.29 | ) | $ | 0.32 | $ | (1.73 | ) | |||||
Diluted net income (loss) per share | $ | (0.15 | ) | $ | (1.29 | ) | $ | 0.32 | $ | (1.73 | ) | |||||
Other_Income_Expense_Net_Table
Other Income (Expense), Net (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||||||
Schedule of Other Income (Expense), Net | ' | |||||||||||||||
A summary of other income (expense), net is as follows (in thousands): | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Reduction of (accrual for) loss contingency related to legal proceedings (Note 8) | $ | — | $ | (71,776 | ) | $ | 69,557 | $ | (181,776 | ) | ||||||
Gain on sale of product line(1) | — | — | 6,522 | — | ||||||||||||
Gain on sale of a cost-method investment | — | — | — | 3,591 | ||||||||||||
Other expense, net | (622 | ) | (2,525 | ) | (2,109 | ) | (2,207 | ) | ||||||||
Total other income (expense), net | $ | (622 | ) | $ | (74,301 | ) | $ | 73,970 | $ | (180,392 | ) | |||||
(1) | In May 2014, the Company sold its Source product line for approximately $14.4 million, net of transaction fees, recording a gain of approximately $6.5 million before taxes. As a part of this transaction, the Company reduced Goodwill on the Marine reporting unit by $5.1 million. The historical results of this product line have not been material to the Company’s results of operations. |
Details_of_Selected_Balance_Sh1
Details of Selected Balance Sheet Accounts (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |||||||
Summary of Inventories | ' | |||||||
Inventories | ||||||||
A summary of inventories is as follows (in thousands): | September 30, 2014 | December 31, 2013 | ||||||
Raw materials and subassemblies | $ | 40,970 | $ | 54,168 | ||||
Work-in-process | 11,879 | 2,297 | ||||||
Finished goods | 26,977 | 33,263 | ||||||
Reserve for excess and obsolete inventories | (24,450 | ) | (32,555 | ) | ||||
Total | $ | 55,376 | $ | 57,173 | ||||
Summary of Other Long-term Liabilities | ' | |||||||
Other Long-term Liabilities | ||||||||
A summary of other long-term liabilities is as follows (in thousands): | September 30, 2014 | December 31, 2013 | ||||||
Accrual for loss contingency related to legal proceedings (Note 8) | $ | 123,770 | $ | 193,327 | ||||
Deferred rents | 12,277 | 8,822 | ||||||
Facility abandonment restructuring accrual | 4,211 | 4,837 | ||||||
Other long-term liabilities | 2,518 | 3,616 | ||||||
Total | $ | 142,776 | $ | 210,602 | ||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Summary of Changes in Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||
A summary of changes in accumulated other comprehensive loss by component is as follows (in thousands): | |||||||||||||||||
Foreign currency translation adjustments | Equity interest in investees’ other comprehensive income (loss) | Other changes in other comprehensive income (loss) | Total | ||||||||||||||
Accumulated other comprehensive loss at December 31, 2013 | $ | (11,923 | ) | $ | 841 | $ | (56 | ) | $ | (11,138 | ) | ||||||
Net current-period other comprehensive income (loss) | 489 | (1,125 | ) | 54 | (582 | ) | |||||||||||
Accumulated other comprehensive loss at September 30, 2014 | $ | (11,434 | ) | $ | (284 | ) | $ | (2 | ) | $ | (11,720 | ) | |||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information and Non-Cash Activity (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||
Summary of Non-cash Items from Investing and Financing Activities | ' | |||||||
A summary of non-cash items from investing and financing activities is as follows (in thousands): | ||||||||
Nine Months Ended September 30, | ||||||||
2014 | 2013 | |||||||
Cash paid during the period for: | ||||||||
Interest | $ | 9,087 | $ | 2,042 | ||||
Income taxes | $ | 12,008 | $ | 13,778 | ||||
Non-cash items from investing and financing activities: | ||||||||
Purchases of computer equipment financed through capital leases | $ | 5,768 | $ | 5,962 | ||||
Leasehold improvement paid by landlord | $ | — | $ | 5,000 | ||||
Conversion of investment in a convertible note to equity | $ | 3,151 | $ | 6,765 | ||||
Transfer of inventory to property, plant, equipment and seismic rental equipment | $ | 3,039 | $ | 1,471 | ||||
Investment in multi-client data library financed through trade payables | $ | 1,298 | $ | — | ||||
Purchases of property, plant, and equipment and seismic rental equipment financed through accounts payable | $ | — | $ | 835 | ||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||||||||||
Condensed Balance Sheet | ' | |||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Balance Sheet | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 84,294 | $ | — | $ | 45,553 | $ | — | $ | 129,847 | ||||||||||
Accounts receivable, net | 1,529 | 36,502 | 48,707 | — | 86,738 | |||||||||||||||
Unbilled receivables | — | 42,059 | 15,418 | — | 57,477 | |||||||||||||||
Inventories | — | 3,151 | 52,225 | — | 55,376 | |||||||||||||||
Prepaid expenses and other current assets | 11,585 | 3,500 | 13,138 | (1,770 | ) | 26,453 | ||||||||||||||
Total current assets | 97,408 | 85,212 | 175,041 | (1,770 | ) | 355,891 | ||||||||||||||
Deferred income tax asset | 6,499 | 6,675 | 760 | 406 | 14,340 | |||||||||||||||
Property, plant, equipment and seismic rental equipment, net | 6,547 | 28,832 | 24,986 | — | 60,365 | |||||||||||||||
Multi-client data library, net | — | 219,251 | 24,666 | — | 243,917 | |||||||||||||||
Equity method investments | 40,174 | — | — | — | 40,174 | |||||||||||||||
Investment in subsidiaries | 796,608 | 280,302 | — | (1,076,910 | ) | — | ||||||||||||||
Goodwill | — | 21,884 | 28,501 | — | 50,385 | |||||||||||||||
Intangible assets, net | — | 6,752 | 2,439 | — | 9,191 | |||||||||||||||
Intercompany receivables | 35,192 | — | — | (35,192 | ) | — | ||||||||||||||
Other assets | 17,624 | 197 | 1,661 | — | 19,482 | |||||||||||||||
Total assets | $ | 1,000,052 | $ | 649,105 | $ | 258,054 | $ | (1,113,466 | ) | $ | 793,745 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Current maturities of long-term debt | $ | — | $ | 4,901 | $ | 1,000 | $ | — | $ | 5,901 | ||||||||||
Accounts payable | 1,886 | 12,443 | 16,337 | — | 30,666 | |||||||||||||||
Accrued expenses | 14,214 | 42,489 | 19,988 | (1,083 | ) | 75,608 | ||||||||||||||
Accrued multi-client data library royalties | — | 23,800 | 616 | — | 24,416 | |||||||||||||||
Deferred revenue | — | 13,707 | 2,788 | — | 16,495 | |||||||||||||||
Total current liabilities | 16,100 | 97,340 | 40,729 | (1,083 | ) | 153,086 | ||||||||||||||
Long-term debt, net of current maturities | 175,000 | 4,444 | 139 | — | 179,583 | |||||||||||||||
Intercompany payables | 490,127 | 34,963 | 229 | (525,319 | ) | — | ||||||||||||||
Other long-term liabilities | 2,829 | 130,775 | 9,455 | (283 | ) | 142,776 | ||||||||||||||
Total liabilities | 684,056 | 267,522 | 50,552 | (526,685 | ) | 475,445 | ||||||||||||||
Redeemable noncontrolling interests | — | — | 2,086 | — | 2,086 | |||||||||||||||
Equity: | ||||||||||||||||||||
Common stock | 1,642 | 290,460 | 5,787 | (296,247 | ) | 1,642 | ||||||||||||||
Additional paid-in capital | 886,170 | 175,005 | 247,585 | (422,590 | ) | 886,170 | ||||||||||||||
Accumulated earnings (deficit) | (553,531 | ) | 334,625 | 28,126 | (362,751 | ) | (553,531 | ) | ||||||||||||
Accumulated other comprehensive income (loss) | (11,720 | ) | 6,736 | (11,416 | ) | 4,680 | (11,720 | ) | ||||||||||||
Due from ION Geophysical Corporation | — | (425,243 | ) | (64,884 | ) | 490,127 | — | |||||||||||||
Treasury stock | (6,565 | ) | — | — | — | (6,565 | ) | |||||||||||||
Total stockholders’ equity | 315,996 | 381,583 | 205,198 | (586,781 | ) | 315,996 | ||||||||||||||
Noncontrolling interests | — | — | 218 | — | 218 | |||||||||||||||
Total equity | 315,996 | 381,583 | 205,416 | (586,781 | ) | 316,214 | ||||||||||||||
Total liabilities and equity | $ | 1,000,052 | $ | 649,105 | $ | 258,054 | $ | (1,113,466 | ) | $ | 793,745 | |||||||||
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 | |||||||||||||||
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 | |||||||||
Condensed Income Statement | ' | |||||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Net revenues | $ | — | $ | 33,344 | $ | 73,947 | $ | (751 | ) | $ | 106,540 | |||||||||
Cost of sales | — | 32,447 | 45,621 | (751 | ) | 77,317 | ||||||||||||||
Gross profit | — | 897 | 28,326 | — | 29,223 | |||||||||||||||
Total operating expenses | 7,599 | 15,357 | 11,616 | — | 34,572 | |||||||||||||||
Income (loss) from operations | (7,599 | ) | (14,460 | ) | 16,710 | — | (5,349 | ) | ||||||||||||
Interest expense, net | (4,931 | ) | (58 | ) | (59 | ) | — | (5,048 | ) | |||||||||||
Intercompany interest, net | (90 | ) | 566 | (476 | ) | — | — | |||||||||||||
Equity in earnings (losses) of investments | (12,131 | ) | 8,500 | — | (1,927 | ) | (5,558 | ) | ||||||||||||
Other income (expense) | (17 | ) | 21 | (626 | ) | — | (622 | ) | ||||||||||||
Net income (loss) before income taxes | (24,768 | ) | (5,431 | ) | 15,549 | (1,927 | ) | (16,577 | ) | |||||||||||
Income tax expense (benefit) | (227 | ) | 800 | 7,772 | — | 8,345 | ||||||||||||||
Net income (loss) | (24,541 | ) | (6,231 | ) | 7,777 | (1,927 | ) | (24,922 | ) | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 381 | — | 381 | |||||||||||||||
Net income (loss) applicable to common shares | $ | (24,541 | ) | $ | (6,231 | ) | $ | 8,158 | $ | (1,927 | ) | $ | (24,541 | ) | ||||||
Comprehensive net income (loss) | $ | (26,407 | ) | $ | (8,838 | ) | $ | 5,168 | $ | 3,289 | $ | (26,788 | ) | |||||||
Comprehensive income attributable to noncontrolling interest | — | — | 381 | — | 381 | |||||||||||||||
Comprehensive net income (loss) attributable to ION | $ | (26,407 | ) | $ | (8,838 | ) | $ | 5,549 | $ | 3,289 | $ | (26,407 | ) | |||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Net revenues | $ | — | $ | 33,039 | $ | 47,516 | $ | (717 | ) | $ | 79,838 | |||||||||
Cost of sales | — | 46,983 | 48,676 | (717 | ) | 94,942 | ||||||||||||||
Gross loss | — | (13,944 | ) | (1,160 | ) | — | (15,104 | ) | ||||||||||||
Total operating expenses | 8,579 | 13,648 | 19,197 | — | 41,424 | |||||||||||||||
Loss from operations | (8,579 | ) | (27,592 | ) | (20,357 | ) | — | (56,528 | ) | |||||||||||
Interest expense, net | (4,185 | ) | (51 | ) | (45 | ) | — | (4,281 | ) | |||||||||||
Intercompany interest, net | (554 | ) | 1,497 | (943 | ) | — | — | |||||||||||||
Equity in losses of investments | (115,911 | ) | (29,066 | ) | (5,030 | ) | 144,815 | (5,192 | ) | |||||||||||
Other expense | (1,562 | ) | (71,886 | ) | (853 | ) | — | (74,301 | ) | |||||||||||
Net loss before income taxes | (130,791 | ) | (127,098 | ) | (27,228 | ) | 144,815 | (140,302 | ) | |||||||||||
Income tax expense (benefit) | 65,967 | (12,459 | ) | 3,446 | — | 56,954 | ||||||||||||||
Net loss | (196,758 | ) | (114,639 | ) | (30,674 | ) | 144,815 | (197,256 | ) | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 498 | — | 498 | |||||||||||||||
Net loss attributable to ION | (196,758 | ) | (114,639 | ) | (30,176 | ) | 144,815 | (196,758 | ) | |||||||||||
Preferred stock dividends | 5,338 | — | — | — | 5,338 | |||||||||||||||
Net loss applicable to common shares | $ | (202,096 | ) | $ | (114,639 | ) | $ | (30,176 | ) | $ | 144,815 | $ | (202,096 | ) | ||||||
Comprehensive net loss | $ | (194,934 | ) | $ | (115,371 | ) | $ | (24,404 | ) | $ | 139,277 | $ | (195,432 | ) | ||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 498 | — | 498 | |||||||||||||||
Comprehensive net loss attributable to ION | $ | (194,934 | ) | $ | (115,371 | ) | $ | (23,906 | ) | $ | 139,277 | $ | (194,934 | ) | ||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Net revenues | $ | — | $ | 159,347 | $ | 215,400 | $ | (2,029 | ) | $ | 372,718 | |||||||||
Cost of sales | — | 117,461 | 132,981 | (2,029 | ) | 248,413 | ||||||||||||||
Gross profit | — | 41,886 | 82,419 | — | 124,305 | |||||||||||||||
Total operating expenses | 24,138 | 45,938 | 36,122 | — | 106,198 | |||||||||||||||
Income (loss) from operations | (24,138 | ) | (4,052 | ) | 46,297 | — | 18,107 | |||||||||||||
Interest expense, net | (13,962 | ) | (148 | ) | (669 | ) | — | (14,779 | ) | |||||||||||
Intercompany interest, net | (234 | ) | 1,519 | (1,285 | ) | — | — | |||||||||||||
Equity in earnings (losses) of investments | 92,195 | 32,615 | 738 | (134,575 | ) | (9,027 | ) | |||||||||||||
Other income (expense) | (1,231 | ) | 73,504 | 1,697 | — | 73,970 | ||||||||||||||
Net income before income taxes | 52,630 | 103,438 | 46,778 | (134,575 | ) | 68,271 | ||||||||||||||
Income tax expense | 4 | 999 | 13,258 | — | 14,261 | |||||||||||||||
Net income | 52,626 | 102,439 | 33,520 | (134,575 | ) | 54,010 | ||||||||||||||
Net income attributable to noncontrolling interests | — | — | (1,384 | ) | — | (1,384 | ) | |||||||||||||
Net income applicable to common shares | $ | 52,626 | $ | 102,439 | $ | 32,136 | $ | (134,575 | ) | $ | 52,626 | |||||||||
Comprehensive net income | $ | 52,044 | $ | 102,957 | $ | 34,024 | $ | (135,597 | ) | $ | 53,428 | |||||||||
Comprehensive income attributable to noncontrolling interest | — | — | (1,384 | ) | — | (1,384 | ) | |||||||||||||
Comprehensive net income attributable to ION | $ | 52,044 | $ | 102,957 | $ | 32,640 | $ | (135,597 | ) | $ | 52,044 | |||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Net revenues | $ | — | $ | 183,414 | $ | 148,120 | $ | (1,044 | ) | $ | 330,490 | |||||||||
Cost of sales | — | 162,838 | 112,225 | (1,044 | ) | 274,019 | ||||||||||||||
Gross profit | — | 20,576 | 35,895 | — | 56,471 | |||||||||||||||
Total operating expenses | 23,995 | 44,260 | 36,051 | — | 104,306 | |||||||||||||||
Loss from operations | (23,995 | ) | (23,684 | ) | (156 | ) | — | (47,835 | ) | |||||||||||
Interest expense, net | (7,926 | ) | (18 | ) | (159 | ) | — | (8,103 | ) | |||||||||||
Intercompany interest, net | (344 | ) | 951 | (607 | ) | — | — | |||||||||||||
Equity in losses of investments | (217,748 | ) | (19,335 | ) | (7,376 | ) | 234,045 | (10,414 | ) | |||||||||||
Other income (expense) | 2,335 | (181,907 | ) | (820 | ) | — | (180,392 | ) | ||||||||||||
Net loss before income taxes | (247,678 | ) | (223,993 | ) | (9,118 | ) | 234,045 | (246,744 | ) | |||||||||||
Income tax expense (benefit) | 18,001 | (11,231 | ) | 12,680 | — | 19,450 | ||||||||||||||
Net loss | (265,679 | ) | (212,762 | ) | (21,798 | ) | 234,045 | (266,194 | ) | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 515 | — | 515 | |||||||||||||||
Net loss attributable to ION | (265,679 | ) | (212,762 | ) | (21,283 | ) | 234,045 | (265,679 | ) | |||||||||||
Preferred stock dividends | 6,014 | — | — | — | 6,014 | |||||||||||||||
Net loss applicable to common shares | $ | (271,693 | ) | $ | (212,762 | ) | $ | (21,283 | ) | $ | 234,045 | $ | (271,693 | ) | ||||||
Comprehensive net loss | $ | (267,093 | ) | $ | (213,491 | ) | $ | (22,412 | ) | $ | 235,388 | $ | (267,608 | ) | ||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 515 | — | 515 | |||||||||||||||
Comprehensive net loss attributable to ION | $ | (267,093 | ) | $ | (213,491 | ) | $ | (21,897 | ) | $ | 235,388 | $ | (267,093 | ) | ||||||
Condensed Cash Flow Statement | ' | |||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||
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 | $ | (40,896 | ) | $ | 63,588 | $ | 64,284 | $ | — | $ | 86,976 | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Cash invested in multi-client data library | — | (57,192 | ) | (148 | ) | — | (57,340 | ) | ||||||||||||
Purchase of property, plant, equipment and seismic rental equipment | (1,501 | ) | (4,165 | ) | (1,176 | ) | — | (6,842 | ) | |||||||||||
Repayment of advances to INOVA Geophysical | 1,000 | — | — | — | 1,000 | |||||||||||||||
Investment in and advances to OceanGeo B.V. | — | — | (3,683 | ) | — | (3,683 | ) | |||||||||||||
Cash of OceanGeo B.V. upon acquiring a controlling interest | — | — | 609 | — | 609 | |||||||||||||||
Net proceeds from sale of Source product line | — | 9,881 | 4,513 | — | 14,394 | |||||||||||||||
Other investing activities | 579 | — | 349 | — | 928 | |||||||||||||||
Net cash provided by (used in) investing activities | 78 | (51,476 | ) | 464 | — | (50,934 | ) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Payments under revolving line of credit | (50,000 | ) | — | — | — | (50,000 | ) | |||||||||||||
Borrowings under revolving line of credit | 15,000 | — | — | — | 15,000 | |||||||||||||||
Payments on notes payable and long-term debt | — | (4,470 | ) | (7,267 | ) | — | (11,737 | ) | ||||||||||||
Costs associated with issuance of debt | (2,126 | ) | — | — | — | (2,126 | ) | |||||||||||||
Capital contribution from affiliate | — | — | — | — | — | |||||||||||||||
Intercompany lending | 37,114 | (7,642 | ) | (29,472 | ) | — | — | |||||||||||||
Acquisition of non-controlling interest | — | — | (6,000 | ) | (6,000 | ) | ||||||||||||||
Proceeds from employee stock purchases and exercise of stock options | 577 | — | — | — | 577 | |||||||||||||||
Other financing activities | (154 | ) | — | — | — | (154 | ) | |||||||||||||
Net cash provided by (used in) financing activities | 411 | (12,112 | ) | (42,739 | ) | — | (54,440 | ) | ||||||||||||
Effect of change in foreign currency exchange rates on cash and cash equivalents | — | — | 189 | — | 189 | |||||||||||||||
Net increase (decrease) in cash and cash equivalents | (40,407 | ) | — | 22,198 | — | (18,209 | ) | |||||||||||||
Cash and cash equivalents at beginning of period | 124,701 | — | 23,355 | — | 148,056 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 84,294 | $ | — | $ | 45,553 | $ | — | $ | 129,847 | ||||||||||
Nine Months Ended September 30, 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 | $ | (46,655 | ) | $ | 66,645 | $ | 58,525 | $ | — | $ | 78,515 | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Cash invested in multi-client data library | — | (83,884 | ) | (2,462 | ) | — | (86,346 | ) | ||||||||||||
Purchase of property, plant, equipment and seismic rental equipment | (1,965 | ) | (7,132 | ) | (4,442 | ) | — | (13,539 | ) | |||||||||||
Net advances to INOVA Geophysical | (8,000 | ) | — | — | — | (8,000 | ) | |||||||||||||
Investment in and advances to OceanGeo B.V. | — | — | (9,500 | ) | — | (9,500 | ) | |||||||||||||
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 | — | 76 | — | — | 76 | |||||||||||||||
Net cash used in investing activities | (13,510 | ) | (98,837 | ) | (16,404 | ) | 13,592 | (115,159 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from issuance of notes | 175,000 | — | — | — | 175,000 | |||||||||||||||
Payments under revolving line of credit | (97,250 | ) | — | — | — | (97,250 | ) | |||||||||||||
Payments on notes payable and long-term debt | — | (2,516 | ) | (780 | ) | — | (3,296 | ) | ||||||||||||
Cost associated with issuance of notes | (6,731 | ) | — | — | — | (6,731 | ) | |||||||||||||
Capital contribution from affiliate | — | 5,695 | 7,897 | (13,592 | ) | — | ||||||||||||||
Intercompany lending | 2,371 | 29,013 | (31,384 | ) | — | — | ||||||||||||||
Payment of preferred dividends | (6,014 | ) | — | — | — | (6,014 | ) | |||||||||||||
Proceeds from employee stock purchases and exercise of stock options | 2,367 | — | — | — | 2,367 | |||||||||||||||
Other financing activities | 790 | — | — | — | 790 | |||||||||||||||
Net cash provided by (used in) financing activities | 70,533 | 32,192 | (24,267 | ) | (13,592 | ) | 64,866 | |||||||||||||
Effect of change in foreign currency exchange rates on cash and cash equivalents | — | — | (608 | ) | — | (608 | ) | |||||||||||||
Net increase in cash and cash equivalents | 10,368 | — | 17,246 | — | 27,614 | |||||||||||||||
Cash and cash equivalents at beginning of period | 30,343 | — | 30,628 | 60,971 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 40,711 | $ | — | $ | 47,874 | $ | — | $ | 88,585 | ||||||||||
Acquisition_of_OceanGeo_Narrat
Acquisition of OceanGeo - Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | 1 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jul. 31, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Feb. 28, 2013 | Sep. 30, 2014 | |
OceanGeo [Member] | OceanGeo [Member] | OceanGeo [Member] | OceanGeo [Member] | OceanGeo [Member] | OceanGeo [Member] | Property, Plant and Equipment [Member] | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in ownership percentage | ' | ' | ' | ' | 30.00% | ' | ' | 40.00% | ' | 30.00% | ' |
Ownership percentage interest | ' | ' | ' | ' | 100.00% | ' | ' | 70.00% | ' | ' | ' |
Loan made to equity method investee | ' | ' | ' | ' | ' | ' | ' | ' | $25,000,000 | ' | ' |
Working capital loan to investee | ' | ' | ' | ' | ' | 46,500,000 | 46,500,000 | ' | 18,900,000 | ' | ' |
Total consideration | ' | ' | ' | ' | 6,000,000 | ' | ' | ' | ' | ' | ' |
Contingent payment to acquiree | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' |
Retrospective adjustments from adjusted purchase accounting valuation estimates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,900,000 |
Acquisition related costs | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' |
Income (loss) from operations | -5,349,000 | -56,528,000 | 18,107,000 | -47,835,000 | ' | 1,700,000 | 12,300,000 | ' | ' | ' | ' |
Revenues | $106,540,000 | $79,838,000 | $372,718,000 | $330,490,000 | ' | $25,000,000 | $71,500,000 | ' | ' | ' | ' |
Acquisition_of_OceanGeo_Assets
Acquisition of OceanGeo - Assets and Liabilities Assumed (Details) (OceanGeo [Member], USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Jan. 31, 2014 |
OceanGeo [Member] | ' |
Business Acquisition [Line Items] | ' |
Cash and cash equivalents | $609 |
Accounts receivable | 9,247 |
Prepaid expenses and other current assets | 1,433 |
Property, plant, equipment and seismic rental equipment, net | 18,474 |
Other assets | 2,227 |
Total identifiable assets | 31,990 |
Accounts payable and accrued liabilities | -13,464 |
Bank loans | -6,135 |
Other liabilities | -1,026 |
Net assets | 11,365 |
Noncontrolling interest | -3,410 |
Total consideration | $7,955 |
Acquisition_of_OceanGeo_Pro_Fo
Acquisition of OceanGeo - Pro Forma Income Statement Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 |
Business Combinations [Abstract] | ' | ' | ' |
Net revenues | $79,838 | $381,902 | $362,157 |
Income (loss) from operations | -72,757 | 22,492 | -66,997 |
Net income (loss) | -214,305 | 55,838 | -277,612 |
Net income (loss) attributable to ION | ($213,807) | $53,684 | ($277,097) |
Basic net income (loss) per common share | ($1.40) | $0.33 | ($1.81) |
Diluted net income (loss) per common share | ($1.40) | $0.33 | ($1.81) |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Summary of segment information | ' | ' | ' | ' |
Revenues | $106,540 | $79,838 | $372,718 | $330,490 |
Gross profit (loss) | 29,223 | -15,104 | 124,305 | 56,471 |
Gross margin | 27.00% | -19.00% | 33.00% | 17.00% |
Income (loss) from operations | -5,349 | -56,528 | 18,107 | -47,835 |
Interest expense, net | -5,048 | -4,281 | -14,779 | -8,103 |
Equity in earnings (losses) of investments | -5,558 | -5,192 | -9,027 | -10,414 |
Other income (expense), net | -622 | -74,301 | 73,970 | -180,392 |
Income (loss) before income taxes | -16,577 | -140,302 | 68,271 | -246,744 |
Solutions [Member] | ' | ' | ' | ' |
Summary of segment information | ' | ' | ' | ' |
Revenues | 45,859 | 43,447 | 197,734 | 221,236 |
Gross profit (loss) | 5,927 | -8,487 | 51,207 | 33,600 |
Gross margin | 13.00% | -20.00% | 26.00% | 15.00% |
Income (loss) from operations | -5,960 | -18,163 | 11,733 | 215 |
Systems [Member] | ' | ' | ' | ' |
Summary of segment information | ' | ' | ' | ' |
Revenues | 24,695 | 26,267 | 71,948 | 81,962 |
Gross profit (loss) | 10,123 | -13,987 | 31,288 | 3,195 |
Gross margin | 41.00% | -53.00% | 43.00% | 4.00% |
Income (loss) from operations | 2,917 | -23,610 | 9,835 | -21,172 |
Software [Member] | ' | ' | ' | ' |
Summary of segment information | ' | ' | ' | ' |
Revenues | 11,010 | 10,124 | 31,582 | 27,292 |
Gross profit (loss) | 8,326 | 7,370 | 23,388 | 19,676 |
Gross margin | 76.00% | 73.00% | 74.00% | 72.00% |
Income (loss) from operations | 6,227 | 6,280 | 16,985 | 16,396 |
Ocean Bottom Services Segment [Member] | ' | ' | ' | ' |
Summary of segment information | ' | ' | ' | ' |
Revenues | 24,976 | 0 | 71,454 | 0 |
Gross profit (loss) | 4,847 | 0 | 18,422 | 0 |
Gross margin | 19.00% | 0.00% | 26.00% | 0.00% |
Income (loss) from operations | 1,677 | 0 | 12,333 | 0 |
Corporate and Other [Member] | ' | ' | ' | ' |
Summary of segment information | ' | ' | ' | ' |
Income (loss) from operations | -10,210 | -21,035 | -32,779 | -43,274 |
New Venture and Data Library [Member] | Solutions [Member] | ' | ' | ' | ' |
Summary of segment information | ' | ' | ' | ' |
Revenues | 21,708 | 17,129 | 106,603 | 129,783 |
New Venture [Member] | Solutions [Member] | ' | ' | ' | ' |
Summary of segment information | ' | ' | ' | ' |
Revenues | 18,446 | 11,945 | 76,499 | 93,630 |
Data Library [Member] | Solutions [Member] | ' | ' | ' | ' |
Summary of segment information | ' | ' | ' | ' |
Revenues | 3,262 | 5,184 | 30,104 | 36,153 |
Data Processing [Member] | Solutions [Member] | ' | ' | ' | ' |
Summary of segment information | ' | ' | ' | ' |
Revenues | 24,151 | 26,318 | 91,131 | 91,453 |
Towed Streamer [Member] | Systems [Member] | ' | ' | ' | ' |
Summary of segment information | ' | ' | ' | ' |
Revenues | 13,666 | 15,342 | 35,782 | 41,461 |
Ocean Bottom Equipment [Member] | Systems [Member] | ' | ' | ' | ' |
Summary of segment information | ' | ' | ' | ' |
Revenues | 0 | 159 | 0 | 7,307 |
Other [Member] | Systems [Member] | ' | ' | ' | ' |
Summary of segment information | ' | ' | ' | ' |
Revenues | 11,029 | 10,766 | 36,166 | 33,194 |
Software Systems [Member] | Software [Member] | ' | ' | ' | ' |
Summary of segment information | ' | ' | ' | ' |
Revenues | 9,922 | 8,892 | 28,384 | 24,297 |
Services [Member] | Software [Member] | ' | ' | ' | ' |
Summary of segment information | ' | ' | ' | ' |
Revenues | $1,088 | $1,232 | $3,198 | $2,995 |
Equity_Method_Investments_Chan
Equity Method Investments Changes in Equity Method Investments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Equity Method Investments [Roll Forward] | ' | ' | ' | ' |
Investment balance, beginning balance | ' | ' | $53,865 | ' |
Equity in earnings (losses) of investments | -5,558 | -5,192 | -9,027 | -10,414 |
Advances to OceanGeo (prior to consolidation) | ' | ' | 3,683 | ' |
Acquisition of controlling interest (consolidation) of OceanGeo | ' | ' | -7,221 | ' |
Equity interest in investees' other comprehensive loss | ' | ' | -1,126 | ' |
Investment balance, ending balance | 40,174 | ' | 40,174 | ' |
INOVA Geophysical [Member] | ' | ' | ' | ' |
Equity Method Investments [Roll Forward] | ' | ' | ' | ' |
Investment balance, beginning balance | ' | ' | 51,065 | ' |
Equity in earnings (losses) of investments | -5,600 | -200 | -9,765 | -3,000 |
Advances to OceanGeo (prior to consolidation) | ' | ' | 0 | ' |
Acquisition of controlling interest (consolidation) of OceanGeo | ' | ' | 0 | ' |
Equity interest in investees' other comprehensive loss | ' | ' | -1,126 | ' |
Investment balance, ending balance | 40,174 | ' | 40,174 | ' |
OceanGeo [Member] | ' | ' | ' | ' |
Equity Method Investments [Roll Forward] | ' | ' | ' | ' |
Investment balance, beginning balance | ' | ' | 2,800 | ' |
Equity in earnings (losses) of investments | ' | ' | 738 | ' |
Advances to OceanGeo (prior to consolidation) | ' | ' | 3,683 | ' |
Acquisition of controlling interest (consolidation) of OceanGeo | ' | ' | -7,221 | ' |
Equity interest in investees' other comprehensive loss | ' | ' | 0 | ' |
Investment balance, ending balance | $0 | ' | $0 | ' |
Equity_Method_Investments_Narr
Equity Method Investments Narrative (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' |
Equity in losses of investments | ($5,558) | ($5,192) | ($9,027) | ($10,414) |
INOVA Geophysical [Member] | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' |
Percentage of equity method investment | 49.00% | ' | 49.00% | ' |
Equity in losses of investments | ($5,600) | ($200) | ($9,765) | ($3,000) |
Equity_Method_Investments_Inco
Equity Method Investments Income (Loss) (Details) (INOVA Geophysical [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
INOVA Geophysical [Member] | ' | ' | ' | ' |
Schedule of Equity Method Investments [Line Items] | ' | ' | ' | ' |
Net revenues | $11,092 | $61,241 | $77,774 | $142,947 |
Gross profit (loss) | -2,164 | 12,243 | 8,020 | 26,378 |
Income (loss) from operations | -9,851 | 1,658 | -16,094 | -7,103 |
Net loss | ($11,425) | ($488) | ($20,010) | ($6,518) |
Longterm_Debt_Obligations_Deta
Long-term Debt Obligations (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Obligations | ' | ' |
Carrying value of long-term debt | $185,484 | $220,152 |
Current portion of long-term debt and lease obligations | -5,901 | -5,906 |
Non-current portion of long-term debt and lease obligations | 179,583 | 214,246 |
Senior secured second-priority notes [Member] | ' | ' |
Obligations | ' | ' |
Carrying value of long-term debt | 175,000 | 175,000 |
Revolving line of credit [Member] | ' | ' |
Obligations | ' | ' |
Carrying value of long-term debt | 0 | 35,000 |
Equipment capital leases [Member] | ' | ' |
Obligations | ' | ' |
Carrying value of long-term debt | 9,693 | 8,651 |
Facility lease obligation [Member] | ' | ' |
Obligations | ' | ' |
Carrying value of long-term debt | $791 | $1,501 |
Longterm_Debt_Narrative_Detail
Long-term Debt Narrative (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | 13-May-13 | Sep. 30, 2014 | Dec. 31, 2013 | Aug. 22, 2014 | Sep. 30, 2014 | Aug. 22, 2014 | Aug. 22, 2014 | Aug. 22, 2014 | Aug. 22, 2014 | Aug. 22, 2014 | Aug. 22, 2014 | Aug. 22, 2014 | Aug. 22, 2014 | Aug. 22, 2014 | Aug. 22, 2014 |
Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Federal Funds Effective Swap Rate [Member] | LIBOR [Member] | Minimum [Member] | Maximum [Member] | |||
PNC Bank, National Association (PNC) [Member] | PNC Bank, National Association (PNC) [Member] | PNC Bank, National Association (PNC) [Member] | China Merchants Bank Co. (CMB) [Member] | Uncommitted Term Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Letter of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | Line of Credit [Member] | ||||||||
PNC Bank, National Association (PNC) [Member] | PNC Bank, National Association (PNC) [Member] | PNC Bank, National Association (PNC) [Member] | PNC Bank, National Association (PNC) [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | PNC Bank, National Association (PNC) [Member] | PNC Bank, National Association (PNC) [Member] | ||||||||||||
PNC Bank, National Association (PNC) [Member] | PNC Bank, National Association (PNC) [Member] | ||||||||||||||||||
Long-term Debt and Interest Rate Caps (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount of debt | ' | ' | ' | ' | $175,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stated rate on debt | ' | ' | ' | ' | 8.13% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving line of credit, maximum capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | 175,000,000 | ' | 50,000,000 | ' | 125,000,000 | ' | ' | ' | ' | ' |
Sublimit for issuance of standby letters of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' |
Outstanding debt | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80,000,000 | ' | ' | ' | ' | ' |
Potential increase to borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 45,000,000 | ' | ' | ' | ' | ' |
Carrying value of long-term debt | 185,484,000 | 220,152,000 | 175,000,000 | 175,000,000 | ' | 0 | 35,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.50% | 1.00% | ' | ' |
Debt Instrument, Number Of Days Prior To Maturity Date Debt May Mature | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '90 days | ' | ' | ' | ' | ' | ' |
Debt Instrument, Percentage Of Equity Interest Securing Obligations Of Borrowers | ' | ' | ' | ' | ' | ' | ' | 65.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed charge coverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.1 | ' |
Leverage ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3 |
Payments of debt restructuring costs | ' | ' | ' | ' | ' | ' | ' | 1,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amortization period of unamortized debt issuance expense | ' | ' | ' | ' | ' | ' | ' | '3 years 6 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized debt issuance expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $300,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Longterm_Debt_Redemption_Perce
Long-term Debt Redemption Percentages for Future Periods (Details) | 9 Months Ended |
Sep. 30, 2014 | |
2015 [Member] | ' |
Debt Instrument Redemption [Line Items] | ' |
Notes redemption percentages | 104.06% |
2016 [Member] | ' |
Debt Instrument Redemption [Line Items] | ' |
Notes redemption percentages | 102.03% |
2017 and thereafter [Member] | ' |
Debt Instrument Redemption [Line Items] | ' |
Notes redemption percentages | 100.00% |
Net_Income_Loss_per_Share_Narr
Net Income (Loss) per Share - Narrative (Details) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 29, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' |
Number of shares issued or committed for issuance under outstanding stock options | 9,111,725 | 7,081,950 | ' |
Number of shares of restricted stock and shares reserved for restricted stock units outstanding | 1,144,432 | 763,559 | ' |
Preferred stock shares outstanding | ' | ' | 27,000 |
Number of common stock issuable upon conversion of remaining cumulative convertible preferred stock | ' | 6,065,075 | ' |
Net_Income_Loss_per_Share_Basi
Net Income (Loss) per Share - Basic and Diluted Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income (loss) applicable to common shares | ($24,541) | ($202,096) | $52,626 | ($271,693) |
Weighted average number of common shares outstanding | 164,149,000 | 157,143,000 | 164,021,000 | 156,842,000 |
Effect of dilutive stock awards | 0 | 0 | 305,000 | 0 |
Weighted average number of diluted common shares outstanding | 164,149,000 | 157,143,000 | 164,326,000 | 156,842,000 |
Basic net income (loss) per share (in dollars per share) | ($0.15) | ($1.29) | $0.32 | ($1.73) |
Diluted net income (loss) per share (in dollars per share) | ($0.15) | ($1.29) | $0.32 | ($1.73) |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' |
Effective income tax rates | -50.30% | -40.60% | 20.90% | -7.90% |
Unrecognized tax benefits | $2.20 | ' | $2.20 | ' |
United States Tax Authority [Member] | ' | ' | ' | ' |
Operating Loss Carryforwards [Line Items] | ' | ' | ' | ' |
Net deferred tax asset | $3.90 | ' | $3.90 | ' |
Litigation_Details
Litigation (Details) (WesternGeco [Member], USD $) | 1 Months Ended | 9 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 1 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2009 | Aug. 31, 2012 | Sep. 30, 2014 | Aug. 31, 2012 | Aug. 31, 2012 | Oct. 24, 2013 | Apr. 30, 2014 | 31-May-14 | Oct. 31, 2013 |
Patent | Pending Litigation [Member] | Pending Litigation, Post Appeal [Member] | Lost Royalties [Member] | Lost Profits [Member] | Lost Profits [Member] | Lost Profits [Member] | Lost Profits [Member] | Previously Reported [Member] | |
Pending Litigation [Member] | Pending Litigation [Member] | Settled Litigation [Member] | Settled Litigation [Member] | Settled Litigation [Member] | Lost Profits [Member] | ||||
Settled Litigation [Member] | |||||||||
Litigation (Textual) [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of patent apparatus claims contained | 4 | ' | ' | ' | ' | ' | ' | ' | ' |
Total damages awarded | ' | $105.90 | ' | $12.50 | $93.40 | $9.40 | ' | ' | $73.10 |
Reduction in damages award in the case | ' | ' | ' | ' | ' | ' | -3 | ' | ' |
Accrual for loss contingency related to legal proceedings | ' | ' | ' | ' | ' | ' | ' | 123.8 | ' |
Maximum amount of appeal bond | ' | ' | 120 | ' | ' | ' | ' | ' | ' |
Annual fee to maintain appeal bond | ' | ' | $2 | ' | ' | ' | ' | ' | ' |
Other_Income_Expense_Net_Detai
Other Income (Expense), Net (Details) (USD $) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
31-May-14 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |||
Other Income and Expenses [Abstract] | ' | ' | ' | ' | ' | ||
Reduction of accrual for loss contingency related to legal proceedings (Note 8) | ' | $0 | ($71,776,000) | $69,557,000 | ($181,776,000) | ||
Gain on sale of product line | 6,500,000 | 0 | [1] | 0 | 6,522,000 | [1] | 0 |
Gain on sale of cost-method investment | ' | 0 | 0 | 0 | 3,591,000 | ||
Other income (expense), net | ' | -622,000 | -2,525,000 | -2,109,000 | -2,207,000 | ||
Total other income, net | ' | -622,000 | -74,301,000 | 73,970,000 | -180,392,000 | ||
Proceeds from sale of Source product line | 14,400,000 | ' | ' | 14,394,000 | 0 | ||
Reduction in Goodwill | ($5,100,000) | ' | ' | ' | ' | ||
[1] | In May 2014, the Company sold its Source product line for approximately $14.4 million, net of transaction fees, recording a gain of approximately $6.5 million before taxes. As a part of this transaction, the Company reduced Goodwill on the Marine reporting unit by $5.1 million. The historical results of this product line have not been material to the Companybs results of operations. |
Details_of_Selected_Balance_Sh2
Details of Selected Balance Sheet Accounts Inventories (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Raw materials and subassemblies | $40,970 | $54,168 |
Work-in-process | 11,879 | 2,297 |
Finished goods | 26,977 | 33,263 |
Reserve for excess and obsolete inventories | -24,450 | -32,555 |
Total | $55,376 | $57,173 |
Details_of_Selected_Balance_Sh3
Details of Selected Balance Sheet Accounts Long-term Liabilities (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other Liabilities Disclosure [Abstract] | ' | ' |
Accrual for loss contingency related to legal proceedings (Note 8) | $123,770 | $193,327 |
Deferred rents | 12,277 | 8,822 |
Facility restructuring accrual | 4,211 | 4,837 |
Other long-term liabilities | 2,518 | 3,616 |
Total | $142,776 | $210,602 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' |
Accumulated other comprehensive income (loss), beginning balance | ' | ' | ($11,138) | ' |
Net current-period other comprehensive income (loss) | -1,866 | 1,824 | -582 | -1,414 |
Accumulated other comprehensive loss, ending balance | -11,720 | ' | -11,720 | ' |
Foreign currency translation adjustments [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' |
Accumulated other comprehensive income (loss), beginning balance | ' | ' | -11,923 | ' |
Net current-period other comprehensive income (loss) | ' | ' | 489 | ' |
Accumulated other comprehensive loss, ending balance | -11,434 | ' | -11,434 | ' |
Equity interest in investeesb other comprehensive income (loss) [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' |
Accumulated other comprehensive income (loss), beginning balance | ' | ' | 841 | ' |
Net current-period other comprehensive income (loss) | ' | ' | -1,125 | ' |
Accumulated other comprehensive loss, ending balance | -284 | ' | -284 | ' |
Other changes in other comprehensive income (loss) [Member] | ' | ' | ' | ' |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ' | ' | ' | ' |
Accumulated other comprehensive income (loss), beginning balance | ' | ' | -56 | ' |
Net current-period other comprehensive income (loss) | ' | ' | 54 | ' |
Accumulated other comprehensive loss, ending balance | ($2) | ' | ($2) | ' |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information and Non-Cash Activity (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Supplemental Cash Flow Elements [Abstract] | ' | ' |
Interest | $9,087 | $2,042 |
Income taxes | 12,008 | 13,778 |
Purchases of computer equipment financed through capital leases | 5,768 | 5,962 |
Leasehold improvement paid by landlord | 0 | 5,000 |
Conversion of investment in a convertible note to equity | 3,151 | 6,765 |
Transfer of inventory to property, plant, equipment and seismic rental equipment | 3,039 | 1,471 |
Investment in multi-client data library financed through trade payables | 1,298 | 0 |
Purchases of property, plant, and equipment and seismic rental equipment financed through accounts payable | $0 | $835 |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments Narrative (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Mar. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2014 |
Credit Facility Receivable [Member] | Credit Facility Receivable [Member] | Credit Facility Receivable [Member] | LIBOR [Member] | |||
Credit Facility Receivable [Member] | ||||||
Fair Value of Financial Instruments (Additional Textual) [Abstract] | ' | ' | ' | ' | ' | ' |
Credit facility to investee | ' | ' | ' | $4,000,000 | ' | ' |
Interest rate on convertible note | ' | ' | ' | ' | ' | 0.25% |
Maximum percentage of outstanding shares notes receivable may be converted | ' | ' | ' | ' | 19.50% | ' |
Converted amount of notes receivable | ' | ' | 3,200,000 | ' | ' | ' |
Shares issued from converted notes receivable | ' | ' | 688,000 | ' | ' | ' |
Percentage of ownership in borrower post-conversion | ' | ' | 19.50% | ' | ' | ' |
Gains (losses) on converted notes receivable | ' | ' | 0 | ' | ' | ' |
Outstanding amount on convertible notes receivable | ' | ' | 1,100,000 | ' | 1,100,000 | ' |
Carrying value of long-term debt | 185,484,000 | 220,152,000 | ' | ' | ' | ' |
Fair value of long-term debt | $176,700,000 | $190,400,000 | ' | ' | ' | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 9 Months Ended | |||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Jul. 31, 2013 | Jul. 31, 2013 | |
BGP Joint Venture [Member] | BGP Joint Venture [Member] | INOVA Geophysical [Member] | INOVA Geophysical [Member] | INOVA Geophysical [Member] | LIBOR [Member] | |
INOVA Geophysical [Member] | ||||||
Property Subject to or Available for Operating Lease [Line Items] | ' | ' | ' | ' | ' | ' |
Company's outstanding common stock owned by BGP | 14.50% | ' | ' | ' | ' | ' |
Related party transaction, revenues from transactions with related party | $5,100,000 | $5,300,000 | ' | ' | ' | ' |
Receivables due from BGP | 1,000,000 | ' | ' | ' | ' | ' |
Loan made to equity method investee | ' | ' | ' | ' | 10,000,000 | ' |
Basis spread on annual rate of loan | ' | ' | ' | ' | ' | 6.50% |
Value of receivables due from related party | ' | ' | 4,000,000 | 10,000,000 | ' | ' |
Payment received on related party debt | ' | ' | $6,000,000 | ' | ' | ' |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information - Narrative (Details) (Senior Notes [Member], USD $) | 13-May-13 |
Senior Notes [Member] | ' |
Condensed Financial Statements, Captions [Line Items] | ' |
Principal amount of debt | $175,000,000 |
Stated rate on debt | 8.13% |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Information - Condensed Balance Sheet (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | $129,847 | $148,056 | $88,585 | $60,971 |
Accounts receivable, net | 86,738 | 149,448 | ' | ' |
Unbilled receivables | 57,477 | 49,468 | ' | ' |
Inventories | 55,376 | 57,173 | ' | ' |
Prepaid expenses and other current assets | 26,453 | 24,772 | ' | ' |
Total current assets | 355,891 | 428,917 | ' | ' |
Deferred income tax asset | 14,340 | 14,650 | ' | ' |
Property, plant, equipment and seismic rental equipment, net | 60,365 | 46,684 | ' | ' |
Multi-client data library, net | 243,917 | 238,784 | ' | ' |
Equity method investments | 40,174 | 53,865 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Goodwill | 50,385 | 55,876 | ' | ' |
Intangible assets, net | 9,191 | 11,247 | ' | ' |
Intercompany receivables | 0 | 0 | ' | ' |
Other assets | 19,482 | 14,648 | ' | ' |
Total assets | 793,745 | 864,671 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current maturities of long-term debt | 5,901 | 5,906 | ' | ' |
Accounts payable | 30,666 | 22,654 | ' | ' |
Accrued expenses | 75,608 | 84,358 | ' | ' |
Accrued multi-client data library royalties | 24,416 | 46,460 | ' | ' |
Deferred revenue | 16,495 | 20,682 | ' | ' |
Total current liabilities | 153,086 | 180,060 | ' | ' |
Long-term debt, net of current maturities | 179,583 | 214,246 | ' | ' |
Intercompany payables | 0 | 0 | ' | ' |
Other long-term liabilities | 142,776 | 210,602 | ' | ' |
Total liabilities | 475,445 | 604,908 | ' | ' |
Redeemable noncontrolling interests | 2,086 | 1,878 | ' | ' |
Stockholdersb equity: | ' | ' | ' | ' |
Common stock | 1,642 | 1,637 | ' | ' |
Additional paid-in capital | 886,170 | 879,969 | ' | ' |
Accumulated earnings (deficit) | -553,531 | -606,157 | ' | ' |
Accumulated other comprehensive income (loss) | -11,720 | -11,138 | ' | ' |
Due from ION Geophysical Corporation | 0 | 0 | ' | ' |
Treasury stock | -6,565 | -6,565 | ' | ' |
Total stockholders' equity | 315,996 | 257,746 | ' | ' |
Noncontrolling interests | 218 | 139 | ' | ' |
Total equity | 316,214 | 257,885 | ' | ' |
Total liabilities and equity | 793,745 | 864,671 | ' | ' |
Reportable Legal Entities [Member] | ION Geophysical Corporation [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 84,294 | 124,701 | 40,711 | 30,343 |
Accounts receivable, net | 1,529 | 1,874 | ' | ' |
Unbilled receivables | 0 | 0 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Prepaid expenses and other current assets | 11,585 | 12,888 | ' | ' |
Total current assets | 97,408 | 139,463 | ' | ' |
Deferred income tax asset | 6,499 | 6,513 | ' | ' |
Property, plant, equipment and seismic rental equipment, net | 6,547 | 6,440 | ' | ' |
Multi-client data library, net | 0 | 0 | ' | ' |
Equity method investments | 40,174 | 51,065 | ' | ' |
Investment in subsidiaries | 796,608 | 699,695 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Intangible assets, net | 0 | 0 | ' | ' |
Intercompany receivables | 35,192 | 8,313 | ' | ' |
Other assets | 17,624 | 14,315 | ' | ' |
Total assets | 1,000,052 | 925,804 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current maturities of long-term debt | 0 | 0 | ' | ' |
Accounts payable | 1,886 | 3,515 | ' | ' |
Accrued expenses | 14,214 | 16,652 | ' | ' |
Accrued multi-client data library royalties | 0 | 0 | ' | ' |
Deferred revenue | 0 | 0 | ' | ' |
Total current liabilities | 16,100 | 20,167 | ' | ' |
Long-term debt, net of current maturities | 175,000 | 210,000 | ' | ' |
Intercompany payables | 490,127 | 426,134 | ' | ' |
Other long-term liabilities | 2,829 | 11,757 | ' | ' |
Total liabilities | 684,056 | 668,058 | ' | ' |
Redeemable noncontrolling interests | 0 | 0 | ' | ' |
Stockholdersb equity: | ' | ' | ' | ' |
Common stock | 1,642 | 1,637 | ' | ' |
Additional paid-in capital | 886,170 | 879,969 | ' | ' |
Accumulated earnings (deficit) | -553,531 | -606,157 | ' | ' |
Accumulated other comprehensive income (loss) | -11,720 | -11,138 | ' | ' |
Due from ION Geophysical Corporation | 0 | 0 | ' | ' |
Treasury stock | -6,565 | -6,565 | ' | ' |
Total stockholders' equity | 315,996 | 257,746 | ' | ' |
Noncontrolling interests | 0 | 0 | ' | ' |
Total equity | 315,996 | 257,746 | ' | ' |
Total liabilities and equity | 1,000,052 | 925,804 | ' | ' |
Reportable Legal Entities [Member] | The Guarantors [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 36,502 | 99,547 | ' | ' |
Unbilled receivables | 42,059 | 33,490 | ' | ' |
Inventories | 3,151 | 6,595 | ' | ' |
Prepaid expenses and other current assets | 3,500 | 5,030 | ' | ' |
Total current assets | 85,212 | 144,662 | ' | ' |
Deferred income tax asset | 6,675 | 6,960 | ' | ' |
Property, plant, equipment and seismic rental equipment, net | 28,832 | 29,845 | ' | ' |
Multi-client data library, net | 219,251 | 212,572 | ' | ' |
Equity method investments | 0 | 0 | ' | ' |
Investment in subsidiaries | 280,302 | 248,482 | ' | ' |
Goodwill | 21,884 | 26,984 | ' | ' |
Intangible assets, net | 6,752 | 8,246 | ' | ' |
Intercompany receivables | 0 | 13,419 | ' | ' |
Other assets | 197 | 56 | ' | ' |
Total assets | 649,105 | 691,226 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current maturities of long-term debt | 4,901 | 4,716 | ' | ' |
Accounts payable | 12,443 | 11,741 | ' | ' |
Accrued expenses | 42,489 | 54,250 | ' | ' |
Accrued multi-client data library royalties | 23,800 | 45,921 | ' | ' |
Deferred revenue | 13,707 | 16,387 | ' | ' |
Total current liabilities | 97,340 | 133,015 | ' | ' |
Long-term debt, net of current maturities | 4,444 | 3,655 | ' | ' |
Intercompany payables | 34,963 | 0 | ' | ' |
Other long-term liabilities | 130,775 | 214,211 | ' | ' |
Total liabilities | 267,522 | 350,881 | ' | ' |
Redeemable noncontrolling interests | 0 | 0 | ' | ' |
Stockholdersb equity: | ' | ' | ' | ' |
Common stock | 290,460 | 290,460 | ' | ' |
Additional paid-in capital | 175,005 | 180,700 | ' | ' |
Accumulated earnings (deficit) | 334,625 | 232,186 | ' | ' |
Accumulated other comprehensive income (loss) | 6,736 | 6,218 | ' | ' |
Due from ION Geophysical Corporation | -425,243 | -369,219 | ' | ' |
Treasury stock | 0 | 0 | ' | ' |
Total stockholders' equity | 381,583 | 340,345 | ' | ' |
Noncontrolling interests | 0 | 0 | ' | ' |
Total equity | 381,583 | 340,345 | ' | ' |
Total liabilities and equity | 649,105 | 691,226 | ' | ' |
Reportable Legal Entities [Member] | All Other Subsidiaries [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 45,553 | 23,355 | 47,874 | 30,628 |
Accounts receivable, net | 48,707 | 48,027 | ' | ' |
Unbilled receivables | 15,418 | 15,978 | ' | ' |
Inventories | 52,225 | 50,578 | ' | ' |
Prepaid expenses and other current assets | 13,138 | 7,438 | ' | ' |
Total current assets | 175,041 | 145,376 | ' | ' |
Deferred income tax asset | 760 | 489 | ' | ' |
Property, plant, equipment and seismic rental equipment, net | 24,986 | 10,399 | ' | ' |
Multi-client data library, net | 24,666 | 26,212 | ' | ' |
Equity method investments | 0 | 2,800 | ' | ' |
Investment in subsidiaries | 0 | 0 | ' | ' |
Goodwill | 28,501 | 28,892 | ' | ' |
Intangible assets, net | 2,439 | 3,001 | ' | ' |
Intercompany receivables | 0 | 0 | ' | ' |
Other assets | 1,661 | 24,262 | ' | ' |
Total assets | 258,054 | 241,431 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current maturities of long-term debt | 1,000 | 1,190 | ' | ' |
Accounts payable | 16,337 | 7,364 | ' | ' |
Accrued expenses | 19,988 | 13,392 | ' | ' |
Accrued multi-client data library royalties | 616 | 539 | ' | ' |
Deferred revenue | 2,788 | 4,295 | ' | ' |
Total current liabilities | 40,729 | 26,780 | ' | ' |
Long-term debt, net of current maturities | 139 | 591 | ' | ' |
Intercompany payables | 229 | 21,732 | ' | ' |
Other long-term liabilities | 9,455 | 8,637 | ' | ' |
Total liabilities | 50,552 | 57,740 | ' | ' |
Redeemable noncontrolling interests | 2,086 | 1,878 | ' | ' |
Stockholdersb equity: | ' | ' | ' | ' |
Common stock | 5,787 | 19,138 | ' | ' |
Additional paid-in capital | 247,585 | 235,381 | ' | ' |
Accumulated earnings (deficit) | 28,126 | -4,010 | ' | ' |
Accumulated other comprehensive income (loss) | -11,416 | -11,920 | ' | ' |
Due from ION Geophysical Corporation | -64,884 | -56,915 | ' | ' |
Treasury stock | 0 | 0 | ' | ' |
Total stockholders' equity | 205,198 | 181,674 | ' | ' |
Noncontrolling interests | 218 | 139 | ' | ' |
Total equity | 205,416 | 181,813 | ' | ' |
Total liabilities and equity | 258,054 | 241,431 | ' | ' |
Consolidation, Eliminations [Member] | ' | ' | ' | ' |
Current assets: | ' | ' | ' | ' |
Cash and cash equivalents | 0 | 0 | 0 | ' |
Accounts receivable, net | 0 | 0 | ' | ' |
Unbilled receivables | 0 | 0 | ' | ' |
Inventories | 0 | 0 | ' | ' |
Prepaid expenses and other current assets | -1,770 | -584 | ' | ' |
Total current assets | -1,770 | -584 | ' | ' |
Deferred income tax asset | 406 | 688 | ' | ' |
Property, plant, equipment and seismic rental equipment, net | 0 | 0 | ' | ' |
Multi-client data library, net | 0 | 0 | ' | ' |
Equity method investments | 0 | 0 | ' | ' |
Investment in subsidiaries | -1,076,910 | -948,177 | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Intangible assets, net | 0 | 0 | ' | ' |
Intercompany receivables | -35,192 | -21,732 | ' | ' |
Other assets | 0 | -23,985 | ' | ' |
Total assets | -1,113,466 | -993,790 | ' | ' |
Current liabilities: | ' | ' | ' | ' |
Current maturities of long-term debt | 0 | 0 | ' | ' |
Accounts payable | 0 | 34 | ' | ' |
Accrued expenses | -1,083 | 64 | ' | ' |
Accrued multi-client data library royalties | 0 | 0 | ' | ' |
Deferred revenue | 0 | 0 | ' | ' |
Total current liabilities | -1,083 | 98 | ' | ' |
Long-term debt, net of current maturities | 0 | 0 | ' | ' |
Intercompany payables | -525,319 | -447,866 | ' | ' |
Other long-term liabilities | -283 | -24,003 | ' | ' |
Total liabilities | -526,685 | -471,771 | ' | ' |
Redeemable noncontrolling interests | 0 | 0 | ' | ' |
Stockholdersb equity: | ' | ' | ' | ' |
Common stock | -296,247 | -309,598 | ' | ' |
Additional paid-in capital | -422,590 | -416,081 | ' | ' |
Accumulated earnings (deficit) | -362,751 | -228,176 | ' | ' |
Accumulated other comprehensive income (loss) | 4,680 | 5,702 | ' | ' |
Due from ION Geophysical Corporation | 490,127 | 426,134 | ' | ' |
Treasury stock | 0 | 0 | ' | ' |
Total stockholders' equity | -586,781 | -522,019 | ' | ' |
Noncontrolling interests | 0 | 0 | ' | ' |
Total equity | -586,781 | -522,019 | ' | ' |
Total liabilities and equity | ($1,113,466) | ($993,790) | ' | ' |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Information - Condensed Income Statement (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' |
Net revenues | $106,540 | $79,838 | $372,718 | $330,490 |
Cost of goods sold | 77,317 | 94,942 | 248,413 | 274,019 |
Gross profit (loss) | 29,223 | -15,104 | 124,305 | 56,471 |
Total operating expenses | 34,572 | 41,424 | 106,198 | 104,306 |
Income (loss) from operations | -5,349 | -56,528 | 18,107 | -47,835 |
Interest expense, net | -5,048 | -4,281 | -14,779 | -8,103 |
Intercompany interest, net | 0 | 0 | 0 | 0 |
Equity in earnings (losses) of investments | -5,558 | -5,192 | -9,027 | -10,414 |
Other income (expense) | -622 | -74,301 | 73,970 | -180,392 |
Income (loss) before income taxes | -16,577 | -140,302 | 68,271 | -246,744 |
Income tax expense (benefit) | 8,345 | 56,954 | 14,261 | 19,450 |
Net income (loss) | -24,922 | -197,256 | 54,010 | -266,194 |
Net (income) loss attributable to noncontrolling interests | 381 | 498 | -1,384 | 515 |
Net income (loss) attributable to ION | -24,541 | -196,758 | 52,626 | -265,679 |
Preferred stock dividends | ' | 5,338 | ' | 6,014 |
Net income (loss) applicable to common shares | -24,541 | -202,096 | 52,626 | -271,693 |
Comprehensive net income (loss) | -26,788 | -195,432 | 53,428 | -267,608 |
Comprehensive income attributable to noncontrolling interest | 381 | 498 | -1,384 | 515 |
Comprehensive net income (loss) attributable to ION | -26,407 | -194,934 | 52,044 | -267,093 |
Reportable Legal Entities [Member] | ION Geophysical Corporation [Member] | ' | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' |
Net revenues | 0 | 0 | 0 | 0 |
Cost of goods sold | 0 | 0 | 0 | 0 |
Gross profit (loss) | 0 | 0 | 0 | 0 |
Total operating expenses | 7,599 | 8,579 | 24,138 | 23,995 |
Income (loss) from operations | -7,599 | -8,579 | -24,138 | -23,995 |
Interest expense, net | -4,931 | -4,185 | -13,962 | -7,926 |
Intercompany interest, net | -90 | -554 | -234 | -344 |
Equity in earnings (losses) of investments | -12,131 | -115,911 | 92,195 | -217,748 |
Other income (expense) | -17 | -1,562 | -1,231 | 2,335 |
Income (loss) before income taxes | -24,768 | -130,791 | 52,630 | -247,678 |
Income tax expense (benefit) | -227 | 65,967 | 4 | 18,001 |
Net income (loss) | -24,541 | -196,758 | 52,626 | -265,679 |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to ION | ' | -196,758 | 52,626 | -265,679 |
Preferred stock dividends | ' | 5,338 | ' | 6,014 |
Net income (loss) applicable to common shares | -24,541 | -202,096 | ' | -271,693 |
Comprehensive net income (loss) | -26,407 | -194,934 | 52,044 | -267,093 |
Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Comprehensive net income (loss) attributable to ION | -26,407 | -194,934 | 52,044 | -267,093 |
Reportable Legal Entities [Member] | The Guarantors [Member] | ' | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' |
Net revenues | 33,344 | 33,039 | 159,347 | 183,414 |
Cost of goods sold | 32,447 | 46,983 | 117,461 | 162,838 |
Gross profit (loss) | 897 | -13,944 | 41,886 | 20,576 |
Total operating expenses | 15,357 | 13,648 | 45,938 | 44,260 |
Income (loss) from operations | -14,460 | -27,592 | -4,052 | -23,684 |
Interest expense, net | -58 | -51 | -148 | -18 |
Intercompany interest, net | 566 | 1,497 | 1,519 | 951 |
Equity in earnings (losses) of investments | 8,500 | -29,066 | 32,615 | -19,335 |
Other income (expense) | 21 | -71,886 | 73,504 | -181,907 |
Income (loss) before income taxes | -5,431 | -127,098 | 103,438 | -223,993 |
Income tax expense (benefit) | 800 | -12,459 | 999 | -11,231 |
Net income (loss) | -6,231 | -114,639 | 102,439 | -212,762 |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to ION | ' | -114,639 | 102,439 | -212,762 |
Preferred stock dividends | ' | 0 | ' | 0 |
Net income (loss) applicable to common shares | -6,231 | -114,639 | ' | -212,762 |
Comprehensive net income (loss) | -8,838 | -115,371 | 102,957 | -213,491 |
Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Comprehensive net income (loss) attributable to ION | -8,838 | -115,371 | 102,957 | -213,491 |
Reportable Legal Entities [Member] | All Other Subsidiaries [Member] | ' | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' |
Net revenues | 73,947 | 47,516 | 215,400 | 148,120 |
Cost of goods sold | 45,621 | 48,676 | 132,981 | 112,225 |
Gross profit (loss) | 28,326 | -1,160 | 82,419 | 35,895 |
Total operating expenses | 11,616 | 19,197 | 36,122 | 36,051 |
Income (loss) from operations | 16,710 | -20,357 | 46,297 | -156 |
Interest expense, net | -59 | -45 | -669 | -159 |
Intercompany interest, net | -476 | -943 | -1,285 | -607 |
Equity in earnings (losses) of investments | 0 | -5,030 | 738 | -7,376 |
Other income (expense) | -626 | -853 | 1,697 | -820 |
Income (loss) before income taxes | 15,549 | -27,228 | 46,778 | -9,118 |
Income tax expense (benefit) | 7,772 | 3,446 | 13,258 | 12,680 |
Net income (loss) | 7,777 | -30,674 | 33,520 | -21,798 |
Net (income) loss attributable to noncontrolling interests | 381 | 498 | -1,384 | 515 |
Net income (loss) attributable to ION | ' | -30,176 | 32,136 | -21,283 |
Preferred stock dividends | ' | 0 | ' | 0 |
Net income (loss) applicable to common shares | 8,158 | -30,176 | ' | -21,283 |
Comprehensive net income (loss) | 5,168 | -24,404 | 34,024 | -22,412 |
Comprehensive income attributable to noncontrolling interest | 381 | 498 | -1,384 | 515 |
Comprehensive net income (loss) attributable to ION | 5,549 | -23,906 | 32,640 | -21,897 |
Consolidation, Eliminations [Member] | ' | ' | ' | ' |
Condensed Income Statements, Captions [Line Items] | ' | ' | ' | ' |
Net revenues | -751 | -717 | -2,029 | -1,044 |
Cost of goods sold | -751 | -717 | -2,029 | -1,044 |
Gross profit (loss) | 0 | 0 | 0 | 0 |
Total operating expenses | 0 | 0 | 0 | 0 |
Income (loss) from operations | 0 | 0 | 0 | 0 |
Interest expense, net | 0 | 0 | 0 | 0 |
Intercompany interest, net | 0 | 0 | 0 | 0 |
Equity in earnings (losses) of investments | -1,927 | 144,815 | -134,575 | 234,045 |
Other income (expense) | 0 | 0 | 0 | 0 |
Income (loss) before income taxes | -1,927 | 144,815 | -134,575 | 234,045 |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Net income (loss) | -1,927 | 144,815 | -134,575 | 234,045 |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to ION | ' | 144,815 | -134,575 | 234,045 |
Preferred stock dividends | ' | 0 | ' | 0 |
Net income (loss) applicable to common shares | -1,927 | 144,815 | ' | 234,045 |
Comprehensive net income (loss) | 3,289 | 139,277 | -135,597 | 235,388 |
Comprehensive income attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Comprehensive net income (loss) attributable to ION | $3,289 | $139,277 | ($135,597) | $235,388 |
Condensed_Consolidating_Financ5
Condensed Consolidating Financial Information - Condensed Cash Flow Statement (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Cash flows from operating activities: | ' | ' |
Net cash provided by (used in) operating activities | $86,976 | $78,515 |
Cash flows from investing activities: | ' | ' |
Cash invested in multi-client data library | -57,340 | -86,346 |
Purchase of property, plant, equipment and seismic rental equipment | -6,842 | -13,539 |
Repayment of advances to INOVA Geophysical | 1,000 | -8,000 |
Investment in and advances to OceanGeo B.V. | -3,683 | -9,500 |
Proceeds from sale of a cost-method investment | 0 | 4,150 |
Cash of OceanGeo B.V. upon acquiring a controlling interest | 609 | 0 |
Net proceeds from sale of Source product line | 14,394 | 0 |
Investment in convertible notes | 0 | -2,000 |
Capital contribution to affiliate | ' | 0 |
Other investing activities | 928 | 76 |
Net cash used in investing activities | -50,934 | -115,159 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of notes | 0 | 175,000 |
Payments under revolving line of credit | -50,000 | -97,250 |
Borrowings under revolving line of credit | 15,000 | 0 |
Payments on notes payable and long-term debt | -11,737 | -3,296 |
Cost associated with issuance of notes | -2,126 | -6,731 |
Capital contribution from affiliate | 0 | 0 |
Intercompany lending | 0 | 0 |
Payment of preferred dividends | ' | -6,014 |
Acquisition of non-controlling interest | -6,000 | 0 |
Proceeds from employee stock purchases and exercise of stock options | 577 | 2,367 |
Other financing activities | -154 | 790 |
Net cash (used in) provided by financing activities | -54,440 | 64,866 |
Effect of change in foreign currency exchange rates on cash and cash equivalents | 189 | -608 |
Net increase (decrease) in cash and cash equivalents | -18,209 | 27,614 |
Cash and cash equivalents at beginning of period | 148,056 | 60,971 |
Cash and cash equivalents at end of period | 129,847 | 88,585 |
Reportable Legal Entities [Member] | ION Geophysical Corporation [Member] | ' | ' |
Cash flows from operating activities: | ' | ' |
Net cash provided by (used in) operating activities | -40,896 | -46,655 |
Cash flows from investing activities: | ' | ' |
Cash invested in multi-client data library | 0 | 0 |
Purchase of property, plant, equipment and seismic rental equipment | -1,501 | -1,965 |
Repayment of advances to INOVA Geophysical | 1,000 | -8,000 |
Investment in and advances to OceanGeo B.V. | 0 | 0 |
Proceeds from sale of a cost-method investment | ' | 4,150 |
Cash of OceanGeo B.V. upon acquiring a controlling interest | 0 | ' |
Net proceeds from sale of Source product line | 0 | ' |
Investment in convertible notes | ' | -2,000 |
Capital contribution to affiliate | ' | -5,695 |
Other investing activities | 579 | 0 |
Net cash used in investing activities | 78 | -13,510 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of notes | ' | 175,000 |
Payments under revolving line of credit | -50,000 | -97,250 |
Borrowings under revolving line of credit | 15,000 | ' |
Payments on notes payable and long-term debt | 0 | 0 |
Cost associated with issuance of notes | -2,126 | -6,731 |
Capital contribution from affiliate | 0 | 0 |
Intercompany lending | 37,114 | 2,371 |
Payment of preferred dividends | ' | -6,014 |
Acquisition of non-controlling interest | 0 | ' |
Proceeds from employee stock purchases and exercise of stock options | 577 | 2,367 |
Other financing activities | -154 | 790 |
Net cash (used in) provided by financing activities | 411 | 70,533 |
Effect of change in foreign currency exchange rates on cash and cash equivalents | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | -40,407 | 10,368 |
Cash and cash equivalents at beginning of period | 124,701 | 30,343 |
Cash and cash equivalents at end of period | 84,294 | 40,711 |
Reportable Legal Entities [Member] | The Guarantors [Member] | ' | ' |
Cash flows from operating activities: | ' | ' |
Net cash provided by (used in) operating activities | 63,588 | 66,645 |
Cash flows from investing activities: | ' | ' |
Cash invested in multi-client data library | -57,192 | -83,884 |
Purchase of property, plant, equipment and seismic rental equipment | -4,165 | -7,132 |
Repayment of advances to INOVA Geophysical | 0 | 0 |
Investment in and advances to OceanGeo B.V. | 0 | 0 |
Proceeds from sale of a cost-method investment | ' | 0 |
Cash of OceanGeo B.V. upon acquiring a controlling interest | 0 | ' |
Net proceeds from sale of Source product line | 9,881 | ' |
Investment in convertible notes | ' | 0 |
Capital contribution to affiliate | ' | -7,897 |
Other investing activities | 0 | 76 |
Net cash used in investing activities | -51,476 | -98,837 |
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 | ' |
Payments on notes payable and long-term debt | -4,470 | -2,516 |
Cost associated with issuance of notes | 0 | 0 |
Capital contribution from affiliate | 0 | 5,695 |
Intercompany lending | -7,642 | 29,013 |
Payment of preferred dividends | ' | 0 |
Acquisition of non-controlling interest | 0 | ' |
Proceeds from employee stock purchases and exercise of stock options | 0 | 0 |
Other financing activities | 0 | 0 |
Net cash (used in) provided by financing activities | -12,112 | 32,192 |
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 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Reportable Legal Entities [Member] | All Other Subsidiaries [Member] | ' | ' |
Cash flows from operating activities: | ' | ' |
Net cash provided by (used in) operating activities | 64,284 | 58,525 |
Cash flows from investing activities: | ' | ' |
Cash invested in multi-client data library | -148 | -2,462 |
Purchase of property, plant, equipment and seismic rental equipment | -1,176 | -4,442 |
Repayment of advances to INOVA Geophysical | 0 | 0 |
Investment in and advances to OceanGeo B.V. | -3,683 | -9,500 |
Proceeds from sale of a cost-method investment | ' | 0 |
Cash of OceanGeo B.V. upon acquiring a controlling interest | 609 | ' |
Net proceeds from sale of Source product line | 4,513 | ' |
Investment in convertible notes | ' | 0 |
Capital contribution to affiliate | ' | 0 |
Other investing activities | 349 | 0 |
Net cash used in investing activities | 464 | -16,404 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of notes | ' | 0 |
Payments under revolving line of credit | 0 | ' |
Borrowings under revolving line of credit | 0 | ' |
Payments on notes payable and long-term debt | -7,267 | -780 |
Cost associated with issuance of notes | 0 | 0 |
Capital contribution from affiliate | 0 | 7,897 |
Intercompany lending | -29,472 | -31,384 |
Payment of preferred dividends | ' | 0 |
Acquisition of non-controlling interest | -6,000 | ' |
Proceeds from employee stock purchases and exercise of stock options | 0 | 0 |
Other financing activities | 0 | 0 |
Net cash (used in) provided by financing activities | -42,739 | -24,267 |
Effect of change in foreign currency exchange rates on cash and cash equivalents | 189 | -608 |
Net increase (decrease) in cash and cash equivalents | 22,198 | 17,246 |
Cash and cash equivalents at beginning of period | 23,355 | 30,628 |
Cash and cash equivalents at end of period | 45,553 | 47,874 |
Consolidation, Eliminations [Member] | ' | ' |
Cash flows from operating activities: | ' | ' |
Net cash provided by (used in) operating activities | 0 | 0 |
Cash flows from investing activities: | ' | ' |
Cash invested in multi-client data library | 0 | 0 |
Purchase of property, plant, equipment and seismic rental equipment | 0 | 0 |
Repayment of advances to INOVA Geophysical | 0 | 0 |
Investment in and advances to OceanGeo B.V. | 0 | 0 |
Proceeds from sale of a cost-method investment | ' | 0 |
Cash of OceanGeo B.V. upon acquiring a controlling interest | 0 | ' |
Net proceeds from sale of Source product line | 0 | ' |
Investment in convertible notes | ' | 0 |
Capital contribution to affiliate | ' | 13,592 |
Other investing activities | 0 | 0 |
Net cash used in investing activities | 0 | 13,592 |
Cash flows from financing activities: | ' | ' |
Proceeds from issuance of notes | ' | 0 |
Payments under revolving line of credit | 0 | ' |
Borrowings under revolving line of credit | 0 | ' |
Payments on notes payable and long-term debt | 0 | 0 |
Cost associated with issuance of notes | 0 | 0 |
Capital contribution from affiliate | 0 | -13,592 |
Intercompany lending | 0 | 0 |
Payment of preferred dividends | ' | 0 |
Proceeds from employee stock purchases and exercise of stock options | 0 | 0 |
Other financing activities | 0 | 0 |
Net cash (used in) provided by financing activities | 0 | -13,592 |
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 |
Cash and cash equivalents at beginning of period | 0 | ' |
Cash and cash equivalents at end of period | 0 | 0 |
Consolidation, Eliminations [Member] | All Other Subsidiaries [Member] | ' | ' |
Cash flows from financing activities: | ' | ' |
Payments under revolving line of credit | ' | $0 |