Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Jan. 30, 2015 | Jun. 30, 2014 |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ION GEOPHYSICAL CORP | ||
Entity Central Index Key | 866609 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $649.80 | ||
Entity Common Stock, Shares Outstanding | 164,484,095 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $173,608 | $148,056 |
Accounts receivable, net | 114,325 | 149,448 |
Unbilled receivables | 22,599 | 49,468 |
Inventories | 51,162 | 57,173 |
Prepaid expenses and other current assets | 13,662 | 24,772 |
Total current assets | 375,356 | 428,917 |
Deferred income tax asset | 8,604 | 14,650 |
Property, plant, equipment and seismic rental equipment net | 69,840 | 46,684 |
Multi-client data library, net | 118,669 | 238,784 |
Equity method investments | 0 | 53,865 |
Goodwill | 27,388 | 55,876 |
Intangible assets, net | 6,788 | 11,247 |
Other assets | 10,612 | 14,648 |
Total assets | 617,257 | 864,671 |
Current liabilities: | ||
Current maturities of long-term debt | 7,649 | 5,906 |
Accounts payable | 36,863 | 22,654 |
Accrued expenses | 65,264 | 84,358 |
Accrued multi-client data library royalties | 35,219 | 46,460 |
Deferred revenue | 8,262 | 20,682 |
Total current liabilities | 153,257 | 180,060 |
Long-term debt, net of current maturities | 182,945 | 214,246 |
Other long-term liabilities | 143,804 | 210,602 |
Total liabilities | 480,006 | 604,908 |
Redeemable noncontrolling interest | 1,539 | 1,878 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock, $0.01 par value; authorized 200,000,000 shares; outstanding 164,484,095 and 163,737,757 shares at December 31, 2014 and 2013, respectively, net of treasury stock | 1,645 | 1,637 |
Additional paid-in capital | 887,749 | 879,969 |
Accumulated deficit | -734,409 | -606,157 |
Accumulated other comprehensive loss | -12,807 | -11,138 |
Treasury stock, at cost, 849,539 shares at both December 31, 2014 and 2013 | -6,565 | -6,565 |
Total stockholders’ equity | 135,613 | 257,746 |
Noncontrolling interests | 99 | 139 |
Total equity | 135,712 | 257,885 |
Total liabilities and equity | $617,257 | $864,671 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $0.01 | $0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares outstanding | 164,484,095 | 163,737,757 |
Treasury stock, shares | 849,539 | 849,539 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Service revenues | $384,938 | $391,317 | $354,583 |
Product revenues | 124,620 | 157,850 | 171,734 |
Total net revenues | 509,558 | 549,167 | 526,317 |
Cost of services | 278,627 | 272,047 | 219,324 |
Cost of products | 68,608 | 112,346 | 91,192 |
Impairment of multi-client data library | 100,100 | 5,461 | 0 |
Gross profit | 62,223 | 159,313 | 215,801 |
Operating expenses: | |||
Research, development and engineering | 41,009 | 37,742 | 34,080 |
Marketing and sales | 39,682 | 38,583 | 35,240 |
General, administrative, and other operating expense | 76,177 | 66,592 | 71,954 |
Impairment of goodwill and intangible assets | 23,284 | 0 | 0 |
Total operating expenses | 180,152 | 142,917 | 141,274 |
Income (loss) from operations | -117,929 | 16,396 | 74,527 |
Interest expense, net | -19,382 | -12,344 | -5,265 |
Equity in earnings (losses) of investments | -49,485 | -42,320 | 297 |
Other income (expense) | 79,860 | -182,530 | 17,124 |
Income (loss) before income taxes | -106,936 | -220,798 | 86,683 |
Income tax expense | 20,582 | 25,720 | 23,857 |
Net income (loss) | -127,518 | -246,518 | 62,826 |
Net (income) loss attributable to noncontrolling interests | -734 | 658 | 489 |
Net income (loss) attributable to ION | -128,252 | -245,860 | 63,315 |
Preferred stock dividends | 0 | 1,014 | 1,352 |
Conversion payment of preferred stock | 0 | 5,000 | 0 |
Net income (loss) applicable to common shares | ($128,252) | ($251,874) | $61,963 |
Net income per share: | |||
Basic (usd per share) | ($0.78) | ($1.59) | $0.40 |
Diluted (usd per share) | ($0.78) | ($1.59) | $0.39 |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 164,089 | 158,506 | 155,801 |
Diluted (in shares) | 164,089 | 158,506 | 162,765 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | ($127,518) | ($246,518) | $62,826 |
Other comprehensive income (loss), net of taxes, as appropriate: | |||
Foreign currency translation adjustments | -882 | 713 | 2,756 |
Equity interest in investee’s other comprehensive income (loss) | -841 | -373 | 1,003 |
Unrealized gain on available-for-sale securities | 28 | 277 | 425 |
Other changes in other comprehensive income | 26 | 131 | 123 |
Total other comprehensive income (loss), net of taxes | -1,669 | 748 | 4,307 |
Comprehensive net income (loss) | -129,187 | -245,770 | 67,133 |
Comprehensive (income) loss attributable to noncontrolling interest | -734 | 658 | 489 |
Comprehensive net income (loss) attributable to ION | ($129,921) | ($245,112) | $67,622 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income (loss) | ($127,518) | ($246,518) | $62,826 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization (other than multi-client library) | 27,656 | 18,158 | 16,202 |
Amortization of multi-client data library | 64,374 | 86,716 | 89,080 |
Stock-based compensation expense | 8,707 | 7,476 | 6,598 |
Equity in (earnings) losses of investments | 49,485 | 42,320 | -297 |
Gain on sale of Source product line | -6,522 | 0 | 0 |
Gain on sale of cost method investments | -5,463 | -3,591 | 0 |
Accrual for (reduction of) loss contingency related to legal proceedings | -69,557 | 183,327 | 10,000 |
Impairment of goodwill and intangible assets | 23,284 | 0 | 0 |
Impairment of multi-client data library | 100,100 | 5,461 | 0 |
Write-down of excess and obsolete inventory | 6,952 | 21,197 | 1,326 |
Write-down of marine equipment | 0 | 0 | 5,928 |
Deferred income taxes | -437 | 4,844 | 3,686 |
Change in operating assets and liabilities: | |||
Accounts receivable | 41,943 | -27,571 | 4,006 |
Unbilled receivables | 26,762 | 40,211 | -64,156 |
Inventories | -13,892 | -8,906 | -7,039 |
Accounts payable, accrued expenses and accrued royalties | -4,771 | 8,482 | 61,873 |
Deferred revenue | -8,382 | -6,253 | -6,957 |
Other assets and liabilities | 11,549 | 13,077 | -13,995 |
Net cash provided by operating activities | 129,780 | 147,587 | 169,081 |
Cash flows from investing activities: | |||
Investment in multi-client data library | -67,785 | -114,582 | -145,627 |
Purchase of property, plant, equipment and seismic rental equipment | -8,264 | -16,914 | -16,650 |
Repayment of (net advances to) by INOVA Geophysical | 1,000 | -5,000 | 0 |
Net investment in and advances to OceanGeo B.V. prior to its consolidation | -3,074 | -24,755 | 0 |
Net proceeds from sale of Source product line | 14,394 | 0 | 0 |
Proceeds from sale of cost method investments | 14,051 | 4,150 | 0 |
Maturity of short-term investments | 0 | 0 | 20,000 |
Investment in a convertible notes | 0 | -2,000 | -2,000 |
Other investing activities | 928 | 128 | 0 |
Net used in investing activities | -48,750 | -158,973 | -144,277 |
Cash flows from financing activities: | |||
Proceeds from issuance of notes | 0 | 175,000 | 0 |
Borrowings under revolving line of credit | 15,000 | 35,000 | 148,250 |
Payments under revolving line of credit | -50,000 | -97,250 | -51,000 |
Payments on notes payable and long-term debt | -12,998 | -4,361 | -101,702 |
Cost associated with issuance of debt | -2,194 | -6,773 | 0 |
Acquisition of non-controlling interest | -6,000 | 0 | 0 |
Payment of preferred dividends | 0 | -1,014 | -1,352 |
Conversion payment of preferred stock | 0 | -5,000 | 0 |
Proceeds from employee stock purchases and exercise of stock options | 577 | 2,527 | 807 |
Other financing activities | -359 | 573 | -1,457 |
Net cash provided by (used in) financing activities | -55,974 | 98,702 | -6,454 |
Effect of change in foreign currency exchange rates on cash and cash equivalents | 496 | -231 | 219 |
Net increase in cash and cash equivalents | 25,552 | 87,085 | 18,569 |
Cash and cash equivalents at beginning of period | 148,056 | 60,971 | 42,402 |
Cash and cash equivalents at end of period | 173,608 | 148,056 | 60,971 |
INOVA Geophysical [Member] | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Write-down of receivables from equity method investees | 5,510 | 0 | 0 |
OceanGeo [Member] | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Write-down of receivables from equity method investees | $0 | $9,157 | $0 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Cumulative Convertible Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interests | |
In Thousands, except Share data, unless otherwise specified | |||||||||
Beginning balance at Dec. 31, 2011 | $425,812 | $27,000 | $1,555 | $843,271 | ($423,612) | ($16,193) | ($6,565) | $356 | |
Beginning balance, Shares at Dec. 31, 2011 | 27,000 | 155,479,776 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | [1] | 63,319 | 63,315 | 4 | |||||
Translation adjustment | 2,718 | 2,756 | -38 | ||||||
Change in fair value of effective cash flow hedges (net of taxes) | 123 | 123 | |||||||
Equity interest in INOVA Geophysical's other comprehensive income (loss) | 1,003 | 1,003 | |||||||
Unrealized net gain (loss) on available-for-sale securities | 425 | 425 | |||||||
Preferred stock dividends | -1,352 | -1,352 | |||||||
Stock-based compensation expense | 6,598 | 6,598 | |||||||
Exercise of stock options, Shares | 194,410 | 194,410 | |||||||
Exercise of stock options | 807 | 2 | 805 | ||||||
Vesting of restricted stock units/ awards, Shares | 764,704 | ||||||||
Vesting of restricted stock units/awards | 0 | 8 | -8 | ||||||
Restricted stock cancelled for employee minimum income taxes, Shares | -209,068 | ||||||||
Restricted stock cancelled for employee minimum income taxes | -1,268 | -2 | -1,266 | ||||||
Issuance of stock for the ESPP, Shares | 127,127 | ||||||||
Issuance of stock for the ESPP | 759 | 1 | 758 | ||||||
Tax benefits from stock-based compensation | -137 | -137 | |||||||
Contribution from noncontrolling interest | 212 | 212 | |||||||
Ending balance at Dec. 31, 2012 | 499,019 | 27,000 | 1,564 | 848,669 | -360,297 | -11,886 | -6,565 | 534 | |
Ending balance, Shares at Dec. 31, 2012 | 27,000 | 156,356,949 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | [1] | -246,199 | -245,860 | -339 | |||||
Translation adjustment | 657 | 713 | -56 | ||||||
Change in fair value of effective cash flow hedges (net of taxes) | 131 | 131 | |||||||
Equity interest in INOVA Geophysical's other comprehensive income (loss) | -373 | -373 | |||||||
Unrealized net gain (loss) on available-for-sale securities | 277 | 277 | |||||||
Preferred stock dividends | -1,014 | -1,014 | |||||||
Conversion payment of preferred stock, Shares | -27,000 | 6,065,075 | |||||||
Conversion payment of preferred stock | -5,000 | -27,000 | 61 | 21,939 | |||||
Stock-based compensation expense | 7,476 | 7,476 | |||||||
Exercise of stock options, Shares | 707,575 | 707,575 | |||||||
Exercise of stock options | 2,527 | 7 | 2,520 | ||||||
Vesting of restricted stock units/ awards, Shares | 578,369 | ||||||||
Vesting of restricted stock units/awards | 0 | 5 | -5 | ||||||
Restricted stock cancelled for employee minimum income taxes, Shares | -115,080 | ||||||||
Restricted stock cancelled for employee minimum income taxes | -483 | -1 | -482 | ||||||
Issuance of stock for the ESPP, Shares | 144,869 | ||||||||
Issuance of stock for the ESPP | 780 | 1 | 779 | ||||||
Tax benefits from stock-based compensation | 87 | 87 | |||||||
Ending balance at Dec. 31, 2013 | 257,885 | 0 | 1,637 | 879,969 | -606,157 | -11,138 | -6,565 | 139 | |
Ending balance, Shares at Dec. 31, 2013 | 0 | 163,737,757 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | [1] | -128,234 | -128,252 | 18 | |||||
Translation adjustment | -940 | -882 | -58 | ||||||
Change in fair value of effective cash flow hedges (net of taxes) | 26 | 26 | |||||||
Equity interest in INOVA Geophysical's other comprehensive income (loss) | -841 | -841 | |||||||
Unrealized net gain (loss) on available-for-sale securities | 28 | 28 | |||||||
Stock-based compensation expense | 8,707 | 8,707 | |||||||
Exercise of stock options, Shares | 28,500 | 28,500 | |||||||
Exercise of stock options | 95 | 0 | 95 | ||||||
Vesting of restricted stock units/ awards, Shares | 662,451 | ||||||||
Vesting of restricted stock units/awards | 0 | 7 | -7 | ||||||
Restricted stock cancelled for employee minimum income taxes, Shares | -136,131 | ||||||||
Restricted stock cancelled for employee minimum income taxes | -350 | -1 | -349 | ||||||
Issuance of stock for the ESPP, Shares | 191,518 | ||||||||
Issuance of stock for the ESPP | 482 | 2 | 480 | ||||||
Purchase of subsidiary shares from noncontrolling interest | -1,146 | -1,146 | |||||||
Ending balance at Dec. 31, 2014 | $135,712 | $0 | $1,645 | $887,749 | ($734,409) | ($12,807) | ($6,565) | $99 | |
Ending balance, Shares at Dec. 31, 2014 | 0 | 164,484,095 | |||||||
[1] | Net income attributable to noncontrolling interests for 2014, 2013 and 2012 excludes $(0.7) million, $(0.3) million and $(0.5) million, respectively, related to the redeemable noncontrolling interests, which is reported in the mezzanine equity section of the Consolidated Balance Sheet. |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Stockholders' Equity [Abstract] | |||
Net income attributable to redeemable noncontrolling interests | ($0.70) | ($0.30) | ($0.50) |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounting Policies [Abstract] | ||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | |||||||
General Description and Principles of Consolidation | ||||||||
ION Geophysical Corporation and its subsidiaries offer a full suite of services and products for seismic data acquisition and processing. The consolidated financial statements include the accounts of ION Geophysical Corporation and its majority-owned subsidiaries (collectively referred to as the “Company” or “ION”). Intercompany balances and transactions have been eliminated. Certain reclassifications were made to previously reported amounts in the consolidated financial statements and notes thereto to make them consistent with the current presentation format. | ||||||||
Use of Estimates | ||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates are made at discrete points in time based on relevant market information. These estimates may be subjective in nature and involve uncertainties and matters of judgment and, therefore, cannot be determined with precision. Areas involving significant estimates include, but are not limited to, accounts and unbilled receivables, inventory valuation, sales forecasts related to multi-client data libraries, goodwill and intangible asset valuation and deferred taxes. Actual results could materially differ from those estimates. | ||||||||
Cash and Cash Equivalents | ||||||||
The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company places its temporary cash investments with high credit quality financial institutions. At times such investments may be in excess of the Federal Deposit Insurance Corporation (FDIC) insurance limit. At December 31, 2014 and 2013, there was $0.4 million and $0.7 million, respectively, of short-term restricted cash used to secure standby and commercial letters of credit, which is included within Prepaid Expenses and Other Current Assets. | ||||||||
Accounts and Unbilled Receivables | ||||||||
Accounts and unbilled receivables are recorded at cost, less the related allowance for doubtful accounts. The Company considers current information and events regarding the customers’ ability to repay their obligations, such as the length of time the receivable balance is outstanding, the customers’ credit worthiness and historical experience. Unbilled receivables relate to revenues recognized on multi-client surveys, imaging services and ocean bottom acquisition services on a proportionate basis, and on licensing of multi-client data libraries for which invoices have not yet been presented to the customer. | ||||||||
Inventories | ||||||||
Inventories are stated at the lower of cost (primarily first-in, first-out method) or market. The Company provides reserves for estimated obsolescence or excess inventory equal to the difference between cost of inventory and its estimated market value based upon assumptions about future demand for the Company’s products, market conditions and the risk of obsolescence driven by new product introductions. | ||||||||
Property, Plant, Equipment and Seismic Rental Equipment | ||||||||
Property, plant, equipment and seismic rental equipment are stated at cost. Depreciation expense is provided straight-line over the following estimated useful lives: | ||||||||
Years | ||||||||
Machinery and equipment | 7-Mar | |||||||
Buildings | 25-May | |||||||
Seismic rental equipment | 5-Mar | |||||||
Leased equipment and other | 10-Mar | |||||||
Expenditures for renewals and betterments are capitalized; repairs and maintenance are charged to expense as incurred. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the accounts and any gain or loss is reflected in operating expenses. | ||||||||
The Company evaluates the recoverability of long-lived assets, including property, plant, equipment and seismic rental equipment, when indicators of impairment exist, relying on a number of factors including operating results, business plans, economic projections and anticipated future cash flows. Impairment in the carrying value of an asset held for use is recognized whenever anticipated future cash flows (undiscounted) from an asset are estimated to be less than its carrying value. The amount of the impairment recognized is the difference between the carrying value of the asset and its fair value. | ||||||||
Multi-Client Data Library | ||||||||
The multi-client data library consists of seismic surveys that are offered for licensing to customers on a non-exclusive basis. The capitalized costs include costs paid to third parties for the acquisition of data and related activities associated with the data creation activity and direct internal processing costs, such as salaries, benefits, computer-related expenses and other costs incurred for seismic data project design and management. For 2014, 2013 and 2012, the Company capitalized, as part of its multi-client data library, $8.3 million, $2.1 million and $3.8 million, respectively, of direct internal processing costs. At December 31, 2014 and 2013, multi-client data library costs and accumulated amortization consisted of the following (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Gross costs of multi-client data creation | $ | 849,522 | $ | 791,522 | ||||
Less accumulated amortization | (611,651 | ) | (547,277 | ) | ||||
Less impairments to multi-client data library | (119,202 | ) | (5,461 | ) | ||||
Total | $ | 118,669 | $ | 238,784 | ||||
The Company’s method of amortizing the costs of an in-process multi-client data library (the period during which the seismic data is being acquired and/or processed, referred to as the “new venture” phase) consists of determining the percentage of actual revenue recognized to the total estimated revenues (which includes both revenues estimated to be realized during the new venture phase and estimated revenues from the licensing of the resulting “on-the-shelf” data survey) and multiplying that percentage by the total cost of the project (the sales forecast method). The Company considers a multi-client data survey to be complete when all work on the creation of the seismic data is finished and that data survey is available for licensing. Once a multi-client data survey is complete, the data survey is considered “on-the-shelf” and the Company’s method of amortization is then the greater of (i) the sales forecast method or (ii) the straight-line basis over a four-year period. The greater amount of amortization resulting from the sales forecast method or the straight-line amortization policy is applied on a cumulative basis at the individual survey level. Under this policy, the Company first records amortization using the sales forecast method. The cumulative amortization recorded for each survey is then compared with the cumulative straight-line amortization. The four-year period utilized in this cumulative comparison commences when the data survey is determined to be complete. If the cumulative straight-line amortization is higher for any specific survey, additional amortization expense is recorded, resulting in accumulated amortization being equal to the cumulative straight-line amortization for such survey. The Company has determined the amortization period of four years based upon its historical experience that indicates that the majority of its revenues from multi-client surveys are derived during the acquisition and processing phases and during four years subsequent to survey completion. | ||||||||
The Company estimates the ultimate revenue expected to be derived from a particular seismic data survey over its estimated useful economic life to determine the costs to amortize, if greater than straight-line amortization. That estimate is made by the Company at the project’s initiation. For a completed multi-client survey, the Company reviews the estimate quarterly. If during any such review, the Company determines that the ultimate revenue for a survey is expected to be materially more or less than the original estimate of ultimate revenue for such survey, the Company decreases or increases (as the case may be) the amortization rate attributable to the future revenue from such survey. In addition, in connection with such reviews, the Company evaluates the recoverability of the multi-client data library, and, if required under Accounting Standards Codification (“ASC”) 360-10 “Impairment and Disposal of Long-Lived Assets,” records an impairment charge with respect to such data. For a discussion of impairments of the Company’s multi-client data library in 2014 and 2013, see Footnote 2 “Impairments, Restructurings and Other Charges.” There were no impairment charges associated with the Company’s multi-client data library during 2012. | ||||||||
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 the Company’s 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. | ||||||||
Equity Method Investments | ||||||||
In accordance with ASC 810 “Consolidation,” the Company determined that INOVA Geophysical is a variable interest entity because the Company’s voting rights with respect to INOVA Geophysical are not proportionate to its ownership interest and substantially all of INOVA Geophysical’s activities are conducted on behalf of the Company and BGP, a related party to the Company. The Company is not the primary beneficiary of INOVA Geophysical because it does not have the power to direct the activities of INOVA Geophysical that most significantly impact its economic performance. Accordingly, the Company does not consolidate INOVA Geophysical, but instead accounts for INOVA Geophysical using the equity method of accounting. Under this method, an investment is carried at the acquisition cost, plus the Company’s equity in undistributed earnings or losses since acquisition, less distributions received. As provided by ASC 815 “Investments,” the Company accounts for its share of earnings in INOVA Geophysical on a one fiscal quarter lag basis. See further discussion regarding the Company’s equity method investment, including the write-down of its investment, in INOVA Geophysical at Footnote 5 “Equity Method Investments.” | ||||||||
Noncontrolling Interests | ||||||||
The Company has both redeemable and non-redeemable noncontrolling interests. Non-redeemable noncontrolling interests in majority-owned affiliates are reported as a separate component of equity in “Noncontrolling interests” in the Consolidated Balance Sheets. Redeemable noncontrolling interests include noncontrolling ownership interests which provide the holders the rights, at certain times, to require the Company to acquire their ownership interest in those entities. These interests are not considered to be permanent equity and are reported in the mezzanine section of the Consolidated Balance Sheets at the greater of their carrying value or redemption value at the balance sheet date. Net income (loss) in the Consolidated Statements of Operations is attributable to both controlling and noncontrolling interests. | ||||||||
Goodwill and Other Intangible Assets | ||||||||
Goodwill is allocated to reporting units, which are either the operating segment or one reporting level below the operating segment. For purposes of performing the impairment test for goodwill as required by ASC 350 “Intangibles — Goodwill and Other,” (“ASC 350”) the Company established the following reporting units: Solutions, Software and Marine Systems. | ||||||||
In accordance with ASC 350, the Company is required to evaluate the carrying value of its goodwill at least annually for impairment, or more frequently if facts and circumstances indicate that it is more likely than not impairment has occurred. The Company formally evaluates the carrying value of its goodwill for impairment as of December 31 for each of its reporting units. The Company first performs a qualitative assessment by evaluating relevant events or circumstances to determine whether it is more likely than not that the fair value of a reporting unit exceeds its carrying amount. If the Company is unable to conclude qualitatively that it is more likely than not that a reporting unit’s fair value exceeds its carrying value, then it will use a two-step quantitative assessment of the fair value of a reporting unit. To determine the fair value of these reporting units, the Company uses a discounted future returns valuation model, which includes a variety of level 3 inputs. The key inputs for the model include the operational three-year forecast for the Company and the then-current market discount factor. Additionally, the Company compares the sum of the estimated fair values of the individual reporting units less consolidated debt to the Company’s overall market capitalization as reflected by the Company’s stock price. If the carrying value of a reporting unit that includes goodwill is determined to be more than the fair value of the reporting unit, there exists the possibility of impairment of goodwill. An impairment loss of goodwill is measured in two steps by first allocating the fair value of the reporting unit to net assets and liabilities including recorded and unrecorded intangible assets to determine the implied carrying value of goodwill. The next step is to measure the difference between the carrying value of goodwill and the implied carrying value of goodwill, and, if the implied carrying value of goodwill is less than the carrying value of goodwill, an impairment loss is recorded equal to the difference. See further discussion below at Footnote 11 “Goodwill.” | ||||||||
The intangible assets, other than goodwill, relate to customer relationships. The Company amortizes its customer relationship intangible assets on an accelerated basis over a 10- to 15-year period, using the undiscounted cash flows of the initial valuation models. The Company uses an accelerated basis as these intangible assets were initially valued using an income approach, with an attrition rate that resulted in a pattern of declining cash flows over a 10- to 15-year period. | ||||||||
Following the guidance of ASC 360 “Property, Plant and Equipment,” the Company reviews the carrying values of these intangible assets for impairment if events or changes in the facts and circumstances indicate that their carrying value may not be recoverable. Any impairment determined is recorded in the current period and is measured by comparing the fair value of the related asset to its carrying value. See further discussion below at Footnote 10 “Details of Selected Balance Sheet Accounts — Intangible Assets.” | ||||||||
Fair Value of Financial Instruments | ||||||||
The Company’s financial instruments include cash and cash equivalents, short-term investments, accounts and unbilled receivables, accounts payable, accrued multi-client data library royalties and long-term debt. The carrying amounts of cash and cash equivalents, short-term investments, accounts and unbilled receivables, accounts payable and accrued multi-client data library royalties approximate fair value due to the highly liquid nature of these instruments. The fair value of the long-term debt is calculated using a market approach based upon Level 1 inputs, including an active market price. | ||||||||
Revenue Recognition | ||||||||
The Company derives revenue from the sale of (i) multi-client and proprietary surveys, licenses of “on-the-shelf” data libraries and imaging services within its Solutions segment; (ii) seismic data acquisition systems and other seismic equipment within its Systems segment; (iii) seismic command and control software systems and software solutions for operations management within its Software segment; and (iv) fully-integrated ocean bottom seismic (“OBS”) solutions that include survey design and planning and data acquisition within its Ocean Bottom Services segment. All revenues of the Solutions and Ocean Bottom Services segments and the services component of revenues for the Software segment are classified as services revenues. All other revenues are classified as product revenues. | ||||||||
Multi-Client and Proprietary Surveys, Data Libraries and Imaging Services — As multi-client surveys are being designed, acquired and/or processed (referred to as the “new venture” phase), the Company enters into non-exclusive licensing arrangements with its customers. License revenues from these new venture survey projects are recognized during the new venture phase as the seismic data is acquired and/or processed on a proportionate basis as work is performed. Under this method, the Company recognizes revenues based upon quantifiable measures of progress, such as kilometers acquired or days processed. Upon completion of a multi-client seismic survey, the seismic survey is considered “on-the-shelf,” and licenses to the survey data are granted to customers on a non-exclusive basis. Revenues on licenses of completed multi-client data surveys are recognized when (a) a signed final master geophysical data license agreement and accompanying supplemental license agreement are returned by the customer; (b) the purchase price for the license is fixed or determinable; (c) delivery or performance has occurred; (d) and no significant uncertainty exists as to the customer’s obligation, willingness or ability to pay. In limited situations, the Company has provided the customer with a right to exchange seismic data for another specific seismic data set. In these limited situations, the Company recognizes revenue at the earlier of the customer exercising its exchange right or the expiration of the customer’s exchange right. | ||||||||
The Company also performs seismic surveys under contracts to specific customers, whereby the seismic data is owned by those customers. Revenue is recognized as the seismic data is acquired and/or processed on a proportionate basis as work is performed. The Company uses quantifiable measures of progress consistent with its multi-client surveys. | ||||||||
Revenues from all imaging and other services are recognized when (a) persuasive evidence of an arrangement exists, (b) the price is fixed or determinable, and (c) collectibility is reasonably assured. Revenues from contract services performed on a dayrate basis are recognized as the service is performed. | ||||||||
Acquisition Systems and Other Seismic Equipment — For the sales of acquisition systems and other seismic equipment, the Company follows the requirements of ASC 605-10 “Revenue Recognition” and recognizes revenue when (a) evidence of an arrangement exists; (b) the price to the customer is fixed and determinable; (c) collectibility is reasonably assured; and (d) the acquisition system or other seismic equipment is delivered to the customer and risk of ownership has passed to the customer, or, in the case in which a substantive customer-specified acceptance clause exists in the contract, the later of delivery or when the customer-specified acceptance is obtained. | ||||||||
Software — For the sales of navigation, survey and quality control software systems, the Company follows the requirements of ASC 985-605 “Software Revenue Recognition” (“ASC 985-605”). The Company recognizes revenue from sales of these software systems when (a) evidence of an arrangement exists; (b) the price to the customer is fixed and determinable; (c) collectibility is reasonably assured; and (d) the software is delivered to the customer and risk of ownership has passed to the customer, or, in the limited case in which a substantive customer-specified acceptance clause exists, the later of delivery or when the customer-specified acceptance is obtained. These arrangements generally include the Company providing related services, such as training courses, engineering services and annual software maintenance. The Company allocates revenue to each element of the arrangement based upon vendor-specific objective evidence (“VSOE”) of fair value of the element or, if VSOE is not available for the delivered element, the Company applies the residual method. | ||||||||
In addition to perpetual software licenses, the Company offers time-based software licenses. For time-based licenses, the Company recognizes revenue ratably over the contract term, which is generally two to five years. | ||||||||
Ocean Bottom Services — The Company recognizes revenues as they are realized and earned and can be reasonably measured, based on contractual dayrates or on a fixed-price basis, and when collectability is reasonably assured. In connection with acquisition contracts, the Company may receive revenues for preparation and mobilization of equipment and personnel or for capital improvements to vessels. The Company defers the revenues earned and incremental costs incurred that are directly related to contract preparation and mobilization and recognizes such revenues and costs over the primary contract term of the acquisition project. The Company uses the ratio of square kilometers acquired as a percentage of the total square kilometers expected to be acquired over the primary term of the contract to recognize deferred revenues and amortize, in cost of services, the costs related to contract preparation and mobilization. The Company recognizes the costs of relocating vessels without contracts to more promising market sectors as such costs are incurred. Upon completion of acquisition contracts, the Company recognizes in earnings any demobilization fees received and expenses incurred. | ||||||||
Multiple-element Arrangements — When separate elements (such as an acquisition system, other seismic equipment and/or imaging and acquisition services) are contained in a single sales arrangement, or in related arrangements with the same customer, the Company follows the requirements of ASC 605-25 “Accounting for Multiple-Element Revenue Arrangement” (“ASC 605-25”). The Company adopted this guidance as of January 1, 2010. Accordingly, the Company applied this guidance to transactions initiated or materially modified on or after January 1, 2010. The guidance does not apply to software sales accounted for under ASC 985-605. The Company also adopted, in the same period, guidance within ASC 985-605 that excludes from its scope revenue arrangements that include both tangible products and software elements, such that the tangible products contain both software and non-software components that function together to deliver the tangible product’s essential functionality. | ||||||||
This guidance requires that arrangement consideration be allocated at the inception of an arrangement to all deliverables using the relative selling price method. The Company allocates arrangement consideration to each deliverable qualifying as a separate unit of accounting in an arrangement based on its relative selling price. The Company determines its selling price using VSOE, if it exists, or otherwise third-party evidence (“TPE”). If neither VSOE nor TPE of selling price exists for a unit of accounting, the Company uses estimated selling price (“ESP”). The Company generally expects that it will not be able to establish TPE due to the nature of the markets in which the Company competes, and, as such, the Company typically will determine its selling price using VSOE or, if not available, ESP. VSOE is generally limited to the price charged when the same or similar product is sold on a standalone basis. If a product is seldom sold on a standalone basis, it is unlikely that the Company can determine VSOE for the product. | ||||||||
The objective of ESP is to determine the price at which the Company would transact if the product were sold by the Company on a standalone basis. The Company’s determination of ESP involves a weighting of several factors based on the specific facts and circumstances of the arrangement. Specifically, the Company considers the anticipated margin on the particular deliverable, the selling price and profit margin for similar products and the Company’s ongoing pricing strategy and policies. | ||||||||
Product Warranty — The Company generally warrants that its manufactured equipment will be free from defects in workmanship, materials and parts. Warranty periods generally range from 30 days to three years from the date of original purchase, depending on the product. The Company provides for estimated warranty as a charge to costs of sales at the time of sale. However, new information may become available, or circumstances (such as applicable laws and regulations) may change, thereby resulting in an increase or decrease in the amount required to be accrued for such matters (and therefore a decrease or increase in reported net income in the period of such change). In limited cases, the Company has provided indemnification of customers for potential intellectual property infringement claims relating to products sold. | ||||||||
Research, Development and Engineering | ||||||||
Research, development and engineering costs primarily relate to activities that are designed to improve the quality of the subsurface image and overall acquisition economics of the Company’s customers. The costs associated with these activities are expensed as incurred. These costs include prototype material and field testing expenses, along with the related salaries and stock-based compensation, facility costs, consulting fees, tools and equipment usage and other miscellaneous expenses associated with these activities. | ||||||||
Stock-Based Compensation | ||||||||
The Company accounts for stock-based compensation under the provisions of ASC 718, “Compensation – Stock Compensation” (“ASC 718”). The Company estimates the value of stock option awards on the date of grant using the Black-Scholes option pricing model. The determination of the fair value of stock-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of subjective variables. These variables include, but are not limited to, expected stock price volatility over the term of the awards, actual and projected employee stock option exercise behaviors, risk-free interest rate and expected dividends. The Company recognizes stock-based compensation on the straight-line basis over the service period of each award (generally the award’s vesting period). | ||||||||
Income Taxes | ||||||||
Income taxes are accounted for under the liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, including operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The Company records a valuation allowance when it is more likely than not that all or a portion of deferred tax assets will not be realized (see Footnote 8 “Income Taxes”). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | ||||||||
Comprehensive Net Income (Loss) | ||||||||
Comprehensive net income (loss) as shown in the Consolidated Statements of Comprehensive Income (Loss) and the balance in Accumulated Other Comprehensive Loss as shown in the Consolidated Balance Sheets as of December 31, 2014 and 2013, consist of foreign currency translation adjustments, equity interest in INOVA Geophysical’s accumulated other comprehensive income (loss) and unrealized gains or losses on available-for-sale securities. | ||||||||
Foreign Currency Gains and Losses | ||||||||
Assets and liabilities of the Company’s subsidiaries operating outside the United States that have a functional currency other than the U.S. dollar have been translated to U.S. dollars using the exchange rate in effect at the balance sheet date. Results of foreign operations have been translated using the average exchange rate during the periods of operation. Resulting translation adjustments have been recorded as a component of Accumulated Other Comprehensive Loss. Foreign currency transaction gains and losses are included in the Consolidated Statements of Operations in Other income (expense) as they occur. Total foreign currency transaction losses were $1.8 million, $1.1 million and $1.9 million for 2014, 2013 and 2012, respectively. | ||||||||
Concentration of Foreign Sales Risk | ||||||||
The majority of the Company’s foreign sales are denominated in U.S. dollars. For 2014, 2013 and 2012, international sales comprised 74%, 73% and 69%, respectively, of total net revenues. Since 2008, global economic problems and uncertainties have generally increased in scope and nature. In the fourth quarter of 2014, crude oil prices dropped by approximately 45%–50% as the non-U.S. economic outlook continues to weaken, North American production continues to expand, and more recently, Saudi Arabia has publicly stated its intention to support its global market share at the expense of lower prices. The decline in crude oil prices, as well as U.S. and European Union sanctions against Russia related to its actions in Ukraine, have both contributed to the devaluation of the Russian ruble putting significant pressure on the Company’s Russian-based customers and negatively impacting the appeal of seismic data located in Russia to potential non-Russian buyers. The Company’s results of operations, liquidity and financial condition related to its operations in Russia are primarily denominated in U.S. dollars. To the extent that world events or economic conditions negatively affect the Company’s future sales to customers in many regions of the world, as well as the collectability of the Company’s existing receivables, the Company’s future results of operations, liquidity and financial condition would be adversely affected. |
Impairments_Restructurings_and
Impairments, Restructurings, and Other Charges | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||
Impairments, Restructurings, and Other Charges | Impairments, Restructurings and Other Charges | |||||||||||||||||||||||
The recent decline in crude oil prices to five-year lows has negatively impacted the economic outlook of the Company’s E&P customers, which has also negatively impacted the outlook for the Company’s seismic contractor customers. In response to the decline in crude oil prices, E&P companies have turned their focus to spending reductions, with exploration spending receiving the largest reductions and seismic spending being one of the most discretionary parts of their exploration budgets. | ||||||||||||||||||||||||
During 2014, the Company recognized the following pre-tax charges (in thousands): | ||||||||||||||||||||||||
Multi-client data library, net | Equity method investments(a) | Goodwill and Intangible Assets(b) | Asset write-downs and other | Severance charges | Total | |||||||||||||||||||
Cost of goods sold | $ | 100,100 | $ | — | $ | — | $ | 8,051 | $ | 391 | $ | 108,542 | ||||||||||||
Operating expenses | — | — | 23,284 | 8,214 | (c) | 1,902 | 33,400 | |||||||||||||||||
Equity in earnings (losses) of investments | — | 34,199 | — | — | — | 34,199 | ||||||||||||||||||
Consolidated total | $ | 100,100 | $ | 34,199 | $ | 23,284 | $ | 16,265 | $ | 2,293 | $ | 176,141 | ||||||||||||
(a) | Represents the full write-down of the Company’s equity method investment in INOVA Geophysical of $30.7 million, in addition to the Company’s share of charges related to excess and obsolete inventory and customer bad debts of $3.5 million. For a discussion of the Company’s impairment of its equity method investment, see Footnote 5 “Equity Method Investments.” | |||||||||||||||||||||||
(b) | Includes an impairment of the goodwill on the Company’s Marine Systems reporting unit and an impairment of certain intangible assets. For a discussion of the impairment of the goodwill, see Footnote 11 “Goodwill.” For a discussion of the impairment of the intangible asset, see Footnote 10 “Details of Selected Balance Sheet Accounts.” | |||||||||||||||||||||||
(c) | Includes outstanding receivables from INOVA Geophysical of $5.5 million. | |||||||||||||||||||||||
Impairment of Multi-client Data Library | ||||||||||||||||||||||||
In connection with the preparation of these financial statements, the Company wrote down the multi-client data library, primarily associated with Arctic and onshore North American programs, by $100.1 million after it was determined that estimated future cash flows would not be sufficient to recover the carrying value due to current market conditions. The reductions in exploration spending, discussed above, have had an impact on the Company’s results of operations for 2014, especially those of its Solutions segment. Sales of Arctic programs have been specifically impacted by recent events in Russia. The decline in crude oil prices, as well as U.S. and European Union sanctions against Russia related to its actions in Ukraine, have both contributed to the devaluation of the Russian ruble putting significant pressure on the Company’s Russian-based customers and negatively impacting the appeal of seismic data located in Russia to potential non-Russian buyers. In North America, the land seismic market continues to experience softness. E&P customer spending in the natural gas shale plays has been limited due to associated gas being produced from unconventional oil wells in North America increasing natural gas supplies putting downward pressure on U.S. natural gas prices. | ||||||||||||||||||||||||
This impairment of the Company’s multi-client data library was recorded because the net capitalized costs exceeded the fair value of the multi-client data library as measured by estimated future cash flows. The fair values of the individual libraries were measured using valuation techniques consistent with the income approach, converting future cash flows to a single discounted amount. Significant inputs used to determine the fair values of the libraries included estimates of: (i) revenues; (ii) future costs including royalties; and (iii) an appropriate discount rate. In order to estimate future cash flows, the Company considered historical cash flows, existing and future contracts and changes in the market environment and other factors that may affect future cash flows. To the extent applicable, the assumptions the Company used are consistent with forecasts that it is otherwise required to make (for example, in preparing its earnings forecasts). The use of this method involves inherent uncertainty. The Company has determined that the fair value measurements of this nonfinancial asset are level 3 in the fair value hierarchy. | ||||||||||||||||||||||||
In 2013, the Company wrote down the multi-client data library by $5.5 million primarily due to cost overruns, which resulted in costs exceeding the sales forecast, triggering the impairment. | ||||||||||||||||||||||||
2014 Restructuring | ||||||||||||||||||||||||
Due to the economic conditions described above, in the fourth quarter of 2014, the Company initiated restructurings across all of its segments, except for its Ocean Bottom Services segment. This restructuring involves the reduction of headcount in all those segments by approximately 10%. The Company incurred a total of $2.3 million of severance charges, which will be paid out in 2015. The Company expects that this reduction will result in annual cash savings of approximately $15.0 million related to this restructuring. | ||||||||||||||||||||||||
In connection with the preparation of these financial statements, the Company re-evaluated the realizability of certain inventory and receivables. The Company wrote down inventory by recording $7.0 million of charges related to excess and obsolete inventory and wrote down certain receivables totaling $8.2 million, which includes receivables due from INOVA Geophysical. | ||||||||||||||||||||||||
2013 Restructuring | ||||||||||||||||||||||||
In the third quarter of 2013, the Company initiated a restructuring of its Systems segment. This restructuring involved the closing of certain manufacturing facilities and a reduction of headcount in those and other facilities. | ||||||||||||||||||||||||
As of September 30, 2013, the Company had reduced its employee headcount in its Systems segment by 31% of the total Systems full-time employee headcount. Of the total amount expensed in 2013, $3.7 million is included in cost of sales, with the remaining $1.9 million included in operating expenses. | ||||||||||||||||||||||||
During 2013, the Company recognized the following pre-tax charges related to its Systems segment restructuring activity (in thousands): | ||||||||||||||||||||||||
Facility charges | Severance charges | Asset write-downs and other | Total | |||||||||||||||||||||
Cost of goods sold | $ | 647 | $ | 3,729 | $ | 21,351 | $ | 25,727 | ||||||||||||||||
Operating expenses | $ | — | $ | 1,873 | $ | 383 | $ | 2,256 | ||||||||||||||||
Consolidated total | $ | 647 | $ | 5,602 | $ | 21,734 | $ | 27,983 | ||||||||||||||||
Acquisition_of_OceanGeo
Acquisition of OceanGeo | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Business Combinations [Abstract] | |||||||||
Acquisition of OceanGeo | Acquisition of OceanGeo | ||||||||
In February 2013, the Company acquired a 30% ownership interest in 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%. Since the initial investment in early 2013 up to the time the Company increased its interest to 100%, the Company has invested approximately $40.5 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 OceanGeo’s multi-client data library. As of December 31, 2014, the Company completed its purchase price allocation and no other material adjustments to the preliminary purchase price adjustments were recorded. 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 twelve months ended December 31, 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 December 31, 2014, the Company’s results of operations include $103.2 million of OceanGeo revenues and $19.1 million of income from OceanGeo’s operations for the twelve months ended December 31, 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 2014 and 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 the Company 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 (Unaudited) | Years Ended December 31, | ||||||||
2014 | 2013 | ||||||||
Net revenues | $ | 518,742 | $ | 580,834 | |||||
Loss from operations | $ | (114,346 | ) | $ | (19,300 | ) | |||
Net loss | $ | (126,492 | ) | $ | (262,974 | ) | |||
Net loss applicable to common shares | $ | (127,226 | ) | $ | (268,330 | ) | |||
Basic and diluted net loss per common share | $ | (0.78 | ) | $ | (1.69 | ) |
Segment_and_Geographic_Informa
Segment and Geographic Information | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Segment and Geographic Information | Segment and Geographic Information | |||||||||||
The Company evaluates and reviews its results based on four segments: Solutions, Systems, Software and Ocean Bottom Services. The Company measures segment operating results based on income (loss) from operations. In addition, the Company has an equity ownership interest its INOVA Geophysical joint venture. See Footnote 5 “Equity Method Investments” for the summarized financial information for INOVA Geophysical. | ||||||||||||
A summary of segment information follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net revenues: | ||||||||||||
Solutions: | ||||||||||||
New Venture | $ | 98,649 | $ | 154,578 | $ | 147,346 | ||||||
Data Library | 66,180 | 111,998 | 88,085 | |||||||||
Total multi-client revenues | 164,829 | 266,576 | 235,431 | |||||||||
Data Processing | 113,075 | 120,808 | 115,834 | |||||||||
Total | $ | 277,904 | $ | 387,384 | $ | 351,265 | ||||||
Systems: | ||||||||||||
Towed Streamer | $ | 43,995 | $ | 66,991 | $ | 77,769 | ||||||
Ocean Bottom Equipment | — | 7,307 | 14,823 | |||||||||
Other | 44,422 | 48,134 | 39,404 | |||||||||
Total | $ | 88,417 | $ | 122,432 | $ | 131,996 | ||||||
Software: | ||||||||||||
Software Systems | $ | 36,203 | $ | 35,418 | $ | 39,738 | ||||||
Services | 3,790 | 3,933 | 3,318 | |||||||||
Total | $ | 39,993 | $ | 39,351 | $ | 43,056 | ||||||
Ocean Bottom Services | $ | 103,244 | $ | — | $ | — | ||||||
Total | $ | 509,558 | $ | 549,167 | $ | 526,317 | ||||||
Gross profit: | ||||||||||||
Solutions | $ | (24,345 | ) | (a) | $ | 111,108 | $ | 132,950 | ||||
Systems | 29,829 | (b) | 19,999 | 50,790 | ||||||||
Software | 28,835 | 28,206 | 32,061 | |||||||||
Ocean Bottom Services | 27,904 | — | — | |||||||||
Total | $ | 62,223 | $ | 159,313 | $ | 215,801 | ||||||
Gross margin: | ||||||||||||
Solutions | (9 | )% | 29 | % | 38 | % | ||||||
Systems | 34 | % | 16 | % | 38 | % | ||||||
Software | 72 | % | 72 | % | 74 | % | ||||||
Ocean Bottom Services | 27 | % | — | % | — | % | ||||||
Total | 12 | % | 29 | % | 41 | % | ||||||
Income (loss) from operations: | ||||||||||||
Solutions | $ | (80,653 | ) | (a) | $ | 61,146 | $ | 88,589 | ||||
Systems | (23,521 | ) | (b) | (9,957 | ) | 10,132 | ||||||
Software | 20,212 | 23,602 | 28,129 | |||||||||
Ocean Bottom Services | 19,070 | — | — | |||||||||
Corporate and other | (53,037 | ) | (58,395 | ) | (52,323 | ) | ||||||
Income (loss) from operations | (117,929 | ) | 16,396 | 74,527 | ||||||||
Interest expense, net | (19,382 | ) | (12,344 | ) | (5,265 | ) | ||||||
Equity in earnings (losses) of investments | (49,485 | ) | (42,320 | ) | 297 | |||||||
Other income (expense) | 79,860 | (182,530 | ) | 17,124 | ||||||||
Income (loss) before income taxes | $ | (106,936 | ) | $ | (220,798 | ) | $ | 86,683 | ||||
(a) | Includes a charge of $100.1 million to write down the multi-client data library, impacting gross profit (loss), in addition to charges for the impairment of intangible assets and severance-related charges within the Solutions segment. | |||||||||||
(b) | Includes a charge of $21.9 million to write down goodwill, impacting income (loss) from operations, in addition to charges for write-downs of inventory and receivables and severance-related charges within the Systems segment. | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Depreciation and amortization (including multi-client data library): | ||||||||||||
Solutions | $ | 80,138 | $ | 99,774 | $ | 98,342 | ||||||
Systems | 1,860 | 2,665 | 4,185 | |||||||||
Software | 989 | 699 | 776 | |||||||||
Ocean Bottom Services | 6,517 | — | — | |||||||||
Corporate and other | 2,526 | 1,736 | 1,979 | |||||||||
Total | $ | 92,030 | $ | 104,874 | $ | 105,282 | ||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Total assets: | ||||||||||||
Solutions | $ | 265,505 | $ | 445,581 | ||||||||
Systems | 84,465 | 139,074 | ||||||||||
Software | 38,479 | 45,343 | ||||||||||
Ocean Bottom Services | 56,637 | — | ||||||||||
Corporate and other | 172,171 | 234,673 | ||||||||||
Total | $ | 617,257 | $ | 864,671 | ||||||||
A summary of total assets by geographic area follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Total assets by geographic area: | ||||||||||||
North America | $ | 347,419 | $ | 609,739 | ||||||||
Europe | 117,622 | 76,601 | ||||||||||
Middle East | 96,532 | 128,909 | ||||||||||
Latin America | 36,529 | 33,375 | ||||||||||
Other | 19,155 | 16,047 | ||||||||||
Total | $ | 617,257 | $ | 864,671 | ||||||||
Intersegment sales are insignificant for all periods presented. Corporate assets include all assets specifically related to corporate personnel and operations, a majority of cash and cash equivalents, and the investment in INOVA Geophysical. Depreciation and amortization expense is allocated to segments based upon use of the underlying assets. | ||||||||||||
A summary of net revenues by geographic area follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net revenues by geographic area: | ||||||||||||
North America | $ | 130,224 | $ | 150,160 | $ | 164,157 | ||||||
Latin America | 111,078 | 54,008 | 46,212 | |||||||||
Europe | 100,188 | 198,977 | 200,589 | |||||||||
Africa | 75,507 | 16,474 | 18,469 | |||||||||
Asia Pacific | 49,881 | 52,672 | 55,028 | |||||||||
Middle East | 39,142 | 63,157 | 37,471 | |||||||||
Commonwealth of Independent States | 3,538 | 13,719 | 4,391 | |||||||||
Total | $ | 509,558 | $ | 549,167 | $ | 526,317 | ||||||
Net revenues are attributed to geographic areas on the basis of the ultimate destination of the equipment or service, if known, or the geographic area imaging services are provided. If the ultimate destination of such equipment is not known, net revenues are attributed to the geographic area of initial shipment. |
Equity_Method_Investments
Equity Method Investments | 12 Months Ended | |||||||||||
Dec. 31, 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 from equity method investees during the year ended December 31, 2014 (in thousands): | ||||||||||||
INOVA Geophysical | OceanGeo | Total | ||||||||||
Investment at December 31, 2013 | $ | 51,065 | $ | 2,800 | $ | 53,865 | ||||||
Equity in losses of investments | (19,525 | ) | 738 | (18,787 | ) | |||||||
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 income (loss) | (1,987 | ) | — | (1,987 | ) | |||||||
Write-down of equity-method investment in INOVA(1) | (29,553 | ) | — | (29,553 | ) | |||||||
Investments at December 31, 2014 | $ | — | $ | — | $ | — | ||||||
(1) | This write-down does not include an additional $1.1 million impairment of the Company’s share of INOVA’s balance of Accumulated other comprehensive loss. The total impairment recorded by the Company equals $30.7 million, as discussed below. | |||||||||||
INOVA Geophysical | ||||||||||||
The Company owns a 49% interest in a land seismic equipment business with BGP. BGP is a subsidiary of China National Petroleum Corporation (“CNPC”) and is a leading global geophysical services contracting company. The joint venture company, organized under the laws of the People’s Republic of China, is named INOVA Geophysical Equipment Limited (“INOVA Geophysical”). BGP owns the remaining 51% interest in INOVA Geophysical. INOVA Geophysical is managed through a Board of Directors consisting of four members appointed by BGP and three members appointed by the Company. | ||||||||||||
Equity in Losses — The Company accounts for its share of earnings in INOVA Geophysical on a one fiscal quarter lag basis. Thus, the Company’s share of INOVA Geophysical’s results for the period from October 1, 2013 to September 30, 2014 (“Fiscal 2014”), is included in the Company’s financial results for its fiscal year ended December 31, 2014, the Company’s share of INOVA Geophysical’s results for the period from October 1, 2012 to September 30, 2013 (“Fiscal 2013”), is included in the Company’s financial results for its fiscal year ended December 31, 2013, and the Company’s share of INOVA Geophysical’s results for the period from October 1, 2011 to September 30, 2012 (“Fiscal 2012”), is included in the Company’s financial results for its fiscal year ended December 31, 2012. | ||||||||||||
INOVA Geophysical is a variable interest entity because the Company’s voting rights with respect to INOVA Geophysical are not proportionate to its ownership interest and substantially all of INOVA Geophysical’s activities are conducted on behalf of the Company and BGP, a related party to the Company. The Company is not the primary beneficiary of INOVA Geophysical because it does not have the power to direct the activities of INOVA Geophysical that most significantly impact its economic performance. Accordingly, the Company does not consolidate INOVA Geophysical, but instead accounts for INOVA Geophysical using the equity method of accounting. In December 2014, the Company wrote its investment in INOVA down to zero as of December 31, 2014. The Company has no obligation, implicit or explicit, to fund any expenses of INOVA Geophysical. | ||||||||||||
The following table reflects summarized financial information for INOVA Geophysical, on a 100% basis, as of September 30, 2014 and 2013 and for Fiscal 2014, Fiscal 2013 and Fiscal 2012 (in thousands): | ||||||||||||
(Unaudited) | September 30, | |||||||||||
2014 | 2013 | |||||||||||
Current assets | $ | 105,085 | $ | 147,475 | ||||||||
Non-current assets | 63,212 | 71,551 | ||||||||||
Current liabilities | 99,732 | 110,972 | ||||||||||
Non-current liabilities | 6,498 | 2,731 | ||||||||||
Equity | $ | 62,067 | $ | 105,323 | ||||||||
Fiscal 2014 (unaudited) | Fiscal 2013 (unaudited) | Fiscal 2012 | ||||||||||
Total net revenues | $ | 89,975 | $ | 183,619 | $ | 188,336 | ||||||
Gross profit (loss) | $ | 247 | (a) | $ | (1,988 | ) | (b) | $ | 39,320 | |||
Income (loss) from operations | $ | (34,540 | ) | (a) | $ | (44,463 | ) | $ | 3,241 | |||
Net income (loss) | $ | (40,087 | ) | $ | (46,149 | ) | (b) | $ | 2,197 | |||
(a) | Impacting INOVA Geophysical’s Fiscal 2014 gross profit (loss) is $3.8 million of a write-down of excess and obsolete inventory. In addition to the special item impacting gross profit (loss), income (loss) from operations was also impacted by $3.4 million of charges related to customer bad debts. | |||||||||||
(b) | Includes approximately $36.5 million of restructuring and special items associated with the impairment of intangible assets, write-down of excess and obsolete inventory and rental equipment, and severance-related charges. In addition to the restructuring and special items impacting gross profit, Net income (loss) was also impacted by $1.8 million of other restructuring and special items. | |||||||||||
Impairment — In connection with the preparation of these financial statements, the Company’s investment in INOVA was fully impaired as it determined that the decline in fair value below cost basis was other-than-temporary. This impairment was the result of the land seismic market having softened significantly due to reduced E&P company spending in the North American natural gas shale plays and reduced seismic activity in Russia and other regions due to lower crude oil prices. INOVA Geophysical has also experienced significant losses in four of the last five years and reduced equipment purchases by BGP in the last year. The Company recorded a charge of $30.7 million, impairing its equity investment in INOVA and its share of INOVA’s Accumulated other comprehensive loss, reducing both balances to zero. | ||||||||||||
The Company considered various qualitative factors to determine if a decrease in the value of the investment was other-than-temporary. These factors included the age of the venture, intent and ability for the Company to recover its investment in the entity, financial condition and long-term prospects of the unconsolidated entity, short-term liquidity needs of the unconsolidated entity, trends in the general economic environment, recoverability of the investment through future cash flows and relationships with the other partners and banks. The Company utilized a combination of the market and income approaches or a combination of these valuation techniques to determine fair value. Inputs to such measures included observable market data obtained from independent sources such as recent market transactions for similar assets. To the extent observable inputs are not available the Company utilizes unobservable inputs based upon the assumptions market participants would use in valuing the asset. Examples of utilized unobservable inputs are future cash flows, long term growth rates and applicable discount rates. The Company has determined that the fair value measurements of this nonfinancial asset are level 3 in the fair value hierarchy. | ||||||||||||
Related Party Transactions | ||||||||||||
For information regarding transactions between the Company and its equity method investee, see Footnote 19 “Certain Relationships and Related Party Transactions.” |
Longterm_Debt_and_Lease_Obliga
Long-term Debt and Lease Obligations | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-term Debt and Lease Obligations | Long-term Debt and Lease Obligations | ||||||||
December 31, | |||||||||
Obligations (in thousands) | 2014 | 2013 | |||||||
Senior secured second-priority notes | $ | 175,000 | $ | 175,000 | |||||
Revolving line of credit | — | 35,000 | |||||||
Equipment capital leases | 15,059 | 8,651 | |||||||
Other debt obligations | 535 | 1,501 | |||||||
Total | 190,594 | 220,152 | |||||||
Current portion of long-term debt and lease obligations | (7,649 | ) | (5,906 | ) | |||||
Non-current portion of long-term debt and lease obligations | $ | 182,945 | $ | 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 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”). With the Prior Credit Facility being replaced by the New Credit Facility in August 2014, INOVA no longer provides a bank standby letter of credit as credit support for the Company’s obligations under the New 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 (with availability under such revolving facility subject at all times to a borrowing base and other conditions to borrowing) and up to an additional $45.0 million of which is subject to the implementation of certain accordion provisions 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. As of December 31, 2014, the Company’s has approximately $68.2 million available under the New Credit Facility. The amount available will increase or decrease monthly as the Company’s borrowing base changes. | |||||||||
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 December 31, 2014, there was no outstanding indebtedness 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 will be classified as long-term debt. | |||||||||
The New Credit Facility is available 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 December 31, 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 or prohibit 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, including among other things: | |||||||||
•incurring additional indebtedness; | |||||||||
•creating liens; | |||||||||
•paying dividends and making other distributions in respect of the Company’s capital stock; | |||||||||
•redeeming the Company’s capital stock; | |||||||||
•making investments or certain other restricted payments; | |||||||||
•selling certain kinds of assets; | |||||||||
•entering into transactions with affiliates; and | |||||||||
•effecting mergers or consolidations. | |||||||||
These and other restrictive covenants contained in the Indenture are subject to certain exceptions and qualifications. All of the Company’s subsidiaries are currently restricted subsidiaries. As of December 31, 2014, the Company was in compliance with these covenants. | |||||||||
Equipment Capital Leases | |||||||||
The Company has entered into capital leases that are due in installments for the purpose of financing the purchase of computer equipment through 2017. Interest accrues under these leases at rates of up to 4.0% per annum, and the leases are collateralized by liens on the computer equipment. The assets are amortized over the lesser of their related lease terms or their estimated productive lives and such charges are reflected within depreciation expense. | |||||||||
A summary of future principal obligations under long-term debt and equipment capital lease obligations follows (in thousands): | |||||||||
Years Ended December 31, | Long-Term Debt | Capital Lease Obligations | |||||||
2015 | $ | 535 | $ | 7,114 | |||||
2016 | — | 5,383 | |||||||
2017 | — | 2,562 | |||||||
2018 | 175,000 | — | |||||||
2019 | — | — | |||||||
Thereafter | — | — | |||||||
Total | $ | 175,535 | $ | 15,059 | |||||
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. Post acquisition, OceanGeo repaid this debt in full. |
Net_Income_Loss_per_Common_Sha
Net Income (Loss) per Common Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Net Income (Loss) per Common Share | Net Income (Loss) per Common Share | |||||||||||
Basic net income (loss) per common share is computed by dividing net income (loss) applicable to common shares by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is determined based on the assumption that dilutive restricted stock and restricted stock unit awards have vested and outstanding dilutive stock options have been exercised and the aggregate proceeds were used to reacquire common stock using the average price of such common stock for the period. The total number of shares issuable under anti-dilutive options at December 31, 2014, 2013 and 2012 were 8,986,025, 8,258,500 and 4,864,553, respectively. | ||||||||||||
Prior to September 30, 2013, there were 27,000 shares outstanding of the Company’s Series D Cumulative Convertible Preferred Stock (“Series D Preferred Stock”). On September 30, 2013, the holder of all of the outstanding shares of Series D Preferred Stock converted those shares into 6,065,075 shares of common stock. The effects of the outstanding shares of all Series D Preferred Stock were anti-dilutive for the year ended December 31, 2013. | ||||||||||||
The following table summarizes the computation of basic and diluted net income (loss) per common share (in thousands, except per share amounts): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net income (loss) applicable to common shares | $ | (128,252 | ) | $ | (251,874 | ) | $ | 61,963 | ||||
Income impact of assumed Series D Preferred Stock conversion | — | — | 1,352 | |||||||||
Net income (loss) after assumed Series D Preferred Stock conversion | $ | (128,252 | ) | $ | (251,874 | ) | $ | 63,315 | ||||
Weighted average number of common shares outstanding | 164,089 | 158,506 | 155,801 | |||||||||
Effect of dilutive stock awards | — | — | 899 | |||||||||
Effect of Series D Preferred Stock | — | — | 6,065 | |||||||||
Weighted average number of diluted common shares outstanding | 164,089 | 158,506 | 162,765 | |||||||||
Basic net income (loss) per share | $ | (0.78 | ) | $ | (1.59 | ) | $ | 0.4 | ||||
Diluted net income (loss) per share | $ | (0.78 | ) | $ | (1.59 | ) | $ | 0.39 | ||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
The sources of income (loss) before income taxes are as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Domestic | $ | (162,151 | ) | $ | (221,185 | ) | $ | 34,633 | ||||
Foreign | 55,215 | 387 | 52,050 | |||||||||
Total | $ | (106,936 | ) | $ | (220,798 | ) | $ | 86,683 | ||||
Components of income taxes are as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | (678 | ) | $ | 4,113 | $ | 873 | |||||
State and local | (42 | ) | 485 | 192 | ||||||||
Foreign | 21,722 | 16,278 | 19,106 | |||||||||
Deferred: | ||||||||||||
Federal | 1,004 | 4,012 | 3,822 | |||||||||
Foreign | (1,424 | ) | 832 | (136 | ) | |||||||
Total income tax expense | $ | 20,582 | $ | 25,720 | $ | 23,857 | ||||||
A reconciliation of the expected income tax expense on income (loss) before income taxes using the statutory federal income tax rate of 35% for 2014, 2013 and 2012 to income tax expense follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Expected income tax expense (benefit) at 35% | $ | (37,428 | ) | $ | (77,279 | ) | $ | 30,339 | ||||
Foreign tax rate differential | (10,481 | ) | (2,348 | ) | (5,404 | ) | ||||||
Foreign tax differences | 6,444 | 16,808 | 4,897 | |||||||||
State and local taxes | (42 | ) | 485 | 192 | ||||||||
Nondeductible expenses and other | (1,584 | ) | (58 | ) | 47 | |||||||
Goodwill impairment | 9,444 | — | — | |||||||||
Valuation allowance: | ||||||||||||
Valuation allowance on equity in losses of INOVA Geophysical | 17,644 | 7,871 | (104 | ) | ||||||||
Valuation allowance on operations | 36,585 | 80,241 | (6,110 | ) | ||||||||
Total income tax expense | $ | 20,582 | $ | 25,720 | $ | 23,857 | ||||||
The tax effects of the cumulative temporary differences resulting in the net deferred income tax asset (liability) are as follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Current deferred: | ||||||||||||
Deferred income tax assets: | ||||||||||||
Accrued expenses | $ | 6,495 | $ | 5,898 | ||||||||
Allowance accounts | 7,076 | 6,282 | ||||||||||
Total current deferred income tax asset | 13,571 | 12,180 | ||||||||||
Valuation allowance | (12,612 | ) | (10,535 | ) | ||||||||
Net current deferred income tax asset | 959 | 1,645 | ||||||||||
Deferred income tax liabilities: | ||||||||||||
Unbilled receivables | (6,865 | ) | (13,516 | ) | ||||||||
Total net current deferred income tax liability | $ | (5,906 | ) | $ | (11,871 | ) | ||||||
Non-current deferred: | ||||||||||||
Deferred income tax assets: | ||||||||||||
Net operating loss carryforward | $ | 61,227 | $ | 9,043 | ||||||||
Capital loss carryforward | 18,385 | 19,657 | ||||||||||
Equity method investment | 58,820 | 41,176 | ||||||||||
Basis in identified intangibles | 9,263 | 9,950 | ||||||||||
Basis in research and development | 3,819 | 3,733 | ||||||||||
Contingency accrual | 43,319 | 67,664 | ||||||||||
Tax credit carryforwards and other | 11,515 | 8,893 | ||||||||||
Total non-current deferred income tax asset | 206,348 | 160,116 | ||||||||||
Valuation allowance | (192,652 | ) | (140,500 | ) | ||||||||
Net non-current deferred income tax asset | 13,696 | 19,616 | ||||||||||
Deferred income tax liabilities: | ||||||||||||
Basis in property, plant and equipment | (5,082 | ) | (5,457 | ) | ||||||||
Total net non-current deferred income tax asset | $ | 8,614 | $ | 14,159 | ||||||||
During 2013 the Company established a valuation allowance on the substantial majority of U.S. net deferred tax assets due to the significant charges taken during the year and the related inability to rely on projections of future income. As of December 31, 2014, the Company has a net U.S. deferred tax asset of approximately $2.7 million. The Company has determined that this net deferred tax asset is more likely than not to be realized through the expected reversal of existing temporary differences and the ability to offset the related deductions against taxable income in open carryback years. The valuation allowance was calculated in accordance with the provisions of ASC 740-10, “Accounting for Income Taxes,” which requires that a valuation allowance be established or maintained when it is “more likely than not” that all or a portion of deferred tax assets will not be realized. The Company will continue to record a valuation allowance for the substantial majority of its deferred tax assets until there is sufficient evidence to warrant reversal. In the event the Company’s expectations of future operating results change, an additional valuation allowance may be required to be established on the Company’s existing unreserved net U.S. deferred tax assets. | ||||||||||||
At December 31, 2014, the Company had U.S. net operating loss carryforwards of approximately $146.5 million, expiring in 2034, and net operating loss carryforwards outside of the U.S. of approximately $47.1 million, the majority of which expires beyond 2027. At December 31, 2014, the Company also had $52.5 million of U.S. capital loss carryforwards. The majority of these capital loss carryforwards expire in 2015. | ||||||||||||
As of December 31, 2014, the Company has approximately $2.0 million of unrecognized tax benefits and does not expect to recognize any significant increases in unrecognized tax benefits during the next twelve-month period. Interest and penalties, if any, related to unrecognized tax benefits are recorded in income tax expense. During 2014, 2013 and 2012, the aggregate changes in the Company’s total gross amount of unrecognized tax benefits are summarized as follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Beginning balance | $ | 2,219 | $ | 1,834 | $ | 1,375 | ||||||
Increases in unrecognized tax benefits – prior year positions | — | — | — | |||||||||
Increases in unrecognized tax benefits – current year positions | 263 | 385 | 459 | |||||||||
Decreases in unrecognized tax benefits – prior year position | (525 | ) | — | — | ||||||||
Ending balance | $ | 1,957 | $ | 2,219 | $ | 1,834 | ||||||
The Company’s U.S. federal tax returns for 2011 and subsequent years remain subject to examination by tax authorities. The Company is no longer subject to IRS examination for periods prior to 2011, although carryforward attributes that were generated prior to 2011 may still be adjusted upon examination by the IRS if they either have been or will be used in a future period. In the Company’s foreign tax jurisdictions, tax returns for 2009 and subsequent years generally remain open to examination. | ||||||||||||
As of December 31, 2014, the Company considered the outside book-over-tax basis difference in its foreign subsidiaries to be in the amount of approximately $61.2 million. United States income taxes have not been provided on this difference as it is the Company’s intention to reinvest the undistributed earnings of its foreign subsidiaries indefinitely. The Company’s U.S. operations are expected to be fully supported by existing cash balances and U.S.-generated cash flows. These foreign earnings could become subject to additional tax if remitted, or deemed remitted, to the United States as a dividend; however, it is not practicable to estimate the additional amount of taxes payable. |
Other_Income_Expense
Other Income (Expense) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||
Other Income (Expense) | Other Income (Expense) | |||||||||||
A summary of other income (expense) follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Reduction of (accrual for) loss contingency related to legal proceedings (Footnote 17) | $ | 69,557 | $ | (183,327 | ) | $ | (10,000 | ) | ||||
Gain on sale of a product line(1) | 6,522 | — | — | |||||||||
Gain on sale of cost method investments(2) | 5,463 | 3,591 | — | |||||||||
Gain on legal settlement(3) | — | — | 30,895 | |||||||||
Other income (expense) | (1,682 | ) | (2,794 | ) | (3,771 | ) | ||||||
Total other income (expense) | $ | 79,860 | $ | (182,530 | ) | $ | 17,124 | |||||
(1) | In 2014, the Company sold its Source product line for $14.4 million, net of transaction fees, recording a gain of approximately $6.5 million before taxes. The historical results of this product line have not been material to the Company’s results of operations. | |||||||||||
(2) | Includes the 2014 sale of the Company’s cost method investment in a privately-owned U.S.-based technology company for total proceeds of approximately $16.5 million, of which $14.1 million was due and paid at closing. | |||||||||||
(3) | Gain relates to the 2012 settlement of a patent infringement lawsuit with Sercel. |
Details_of_Selected_Balance_Sh
Details of Selected Balance Sheet Accounts | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||
Details of Selected Balance Sheet Accounts | Details of Selected Balance Sheet Accounts | |||||||||||
Accounts Receivable | ||||||||||||
A summary of accounts receivable follows (in thousands): | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Accounts receivable, principally trade | $ | 121,957 | $ | 156,670 | ||||||||
Less allowance for doubtful accounts | (7,632 | ) | (7,222 | ) | ||||||||
Accounts receivable, net | $ | 114,325 | $ | 149,448 | ||||||||
Inventories | ||||||||||||
A summary of inventories follows (in thousands): | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Raw materials and purchased subassemblies | $ | 41,461 | $ | 54,168 | ||||||||
Work-in-process | 18,221 | 2,297 | ||||||||||
Finished goods | 21,284 | 33,263 | ||||||||||
Reserve for excess and obsolete inventories | (29,804 | ) | (32,555 | ) | ||||||||
Total | $ | 51,162 | $ | 57,173 | ||||||||
The Company provides for estimated obsolescence or excess inventory in amounts equal to the difference between the cost of inventory and market based upon assumptions about future demand for the Company’s products and market conditions. For 2014, the reserve for excess and obsolete inventories decreased primarily due to the disposal of reserved inventory partially offset by the increase in the Company’s reserve for excess and obsolete inventories by $7.0 million related to write-downs of inventory resulting from restructuring activities. For additional information related to the Company’s restructuring charges, see Footnote 2 “Impairments, Restructurings and Other Charges.” For 2013, the Company recorded inventory obsolescence and excess inventory charges of approximately $21.2 million. | ||||||||||||
Property, Plant, Equipment and Seismic Rental Equipment | ||||||||||||
A summary of property, plant, equipment and seismic rental equipment follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Buildings | $ | 25,343 | $ | 23,292 | ||||||||
Machinery and equipment | 144,864 | 97,242 | ||||||||||
Seismic rental equipment | 2,166 | 8,649 | ||||||||||
Furniture and fixtures | 4,064 | 4,673 | ||||||||||
Other | 16,481 | 3,577 | ||||||||||
Total | 192,918 | 137,433 | ||||||||||
Less accumulated depreciation | (123,078 | ) | (90,749 | ) | ||||||||
Property, plant, equipment and seismic rental equipment, net | $ | 69,840 | $ | 46,684 | ||||||||
Total depreciation expense, including amortization of assets recorded under capital leases, for 2014, 2013 and 2012 was $25.1 million, $14.8 million and $12.5 million, respectively. In 2012, the Company wrote down $5.9 million of marine seismic equipment it had leased to a marine seismic contractor. This write-down was reflected in general, administrative and other operating expenses. | ||||||||||||
Intangible Assets | ||||||||||||
A summary of intangible assets, net, follows (in thousands): | 31-Dec-14 | |||||||||||
Gross | Accumulated | Net | ||||||||||
Amount | Amortization | |||||||||||
Customer relationships | $ | 40,234 | $ | (33,446 | ) | $ | 6,788 | |||||
Intellectual property rights | 3,350 | (3,350 | ) | — | ||||||||
Total | $ | 43,584 | $ | (36,796 | ) | $ | 6,788 | |||||
31-Dec-13 | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Amount | Amortization | |||||||||||
Customer relationships | $ | 42,593 | $ | (31,880 | ) | $ | 10,713 | |||||
Intellectual property rights | 4,300 | (3,766 | ) | 534 | ||||||||
Total | $ | 46,893 | $ | (35,646 | ) | $ | 11,247 | |||||
In connection with the preparation of these financial statements, the Company wrote down the book value of certain relationships in its Solutions segment by $1.4 million. Total amortization expense for intangible assets for 2014, 2013 and 2012 was $2.5 million, $3.8 million and $3.9 million, respectively. A summary of the estimated amortization expense for the next five years follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2015 | $ | 1,939 | ||||||||||
2016 | $ | 1,675 | ||||||||||
2017 | $ | 1,452 | ||||||||||
2018 | $ | 1,225 | ||||||||||
2019 | $ | 497 | ||||||||||
Accrued Expenses | ||||||||||||
A summary of accrued expenses follows (in thousands): | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Accrued multi-client data library acquisition costs | $ | 6,458 | $ | 25,140 | ||||||||
Compensation, including compensation-related taxes and commissions | 33,386 | 29,727 | ||||||||||
Deferred income tax liability | 5,900 | 11,967 | ||||||||||
Income tax payable | 8,865 | 5,845 | ||||||||||
Other | 10,655 | 11,679 | ||||||||||
Total | $ | 65,264 | $ | 84,358 | ||||||||
Other Long-term Liabilities | ||||||||||||
A summary of other long-term liabilities follows (in thousands): | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Accrual for loss contingency related to legal proceedings (Footnote 17) | $ | 123,770 | $ | 193,327 | ||||||||
Facility restructuring accrual | 4,667 | 4,837 | ||||||||||
Other | 15,367 | 12,438 | ||||||||||
Total | $ | 143,804 | $ | 210,602 | ||||||||
Goodwill
Goodwill | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Goodwill | Goodwill | |||||||||||||||
On December 31, 2014, the Company completed the annual reviews of the carrying value of goodwill in its Solutions, Software and Marine Systems reporting units, and recorded a charge through Income (loss) from operations. In connection with the preparation of these financial statements, the Company determined that the $21.9 million of goodwill in its Marine Systems reporting unit was fully impaired. Remaining goodwill as of December 31, 2014 was comprised of $24.4 million and $2.9 million in the Company’s Software and Solutions reporting units, respectively. The 2014 quantitative assessment indicated that the fair values of its Software and Solutions reporting units significantly exceeded their carrying values. However, if the estimates or related projections associated with the reporting units significantly change in the future, the Company may be required to record impairment charges. | ||||||||||||||||
For goodwill testing purposes, the $123.8 million litigation contingency accrual is assigned to the Marine Systems reporting unit. Based on this accrual and the recording of a valuation allowance on substantially all of the Company’s net deferred tax assets, this reporting unit’s carrying value was negative as of December 31, 2014. The negative carrying value required the Company to perform step 2 of the impairment test on its Marine Systems reporting unit; the test determined that the goodwill associated with the Marine Systems reporting unit was fully impaired. | ||||||||||||||||
The following is a summary of the changes in the carrying amount of goodwill for the years ended December 31, 2014 and 2013 (in thousands): | ||||||||||||||||
Solutions | Software | Marine Systems | Total | |||||||||||||
Balance at January 1, 2013 | $ | 2,943 | $ | 25,422 | $ | 26,984 | $ | 55,349 | ||||||||
Impact of foreign currency translation adjustments | — | 527 | — | 527 | ||||||||||||
Balance at December 31, 2013 | 2,943 | 25,949 | 26,984 | 55,876 | ||||||||||||
Reduction due to sale of Source product line(1) | — | — | (5,100 | ) | (5,100 | ) | ||||||||||
Impairment of goodwill | — | — | (21,884 | ) | (21,884 | ) | ||||||||||
Impact of foreign currency translation adjustments | — | (1,504 | ) | — | (1,504 | ) | ||||||||||
Balance at December 31, 2014 | $ | 2,943 | $ | 24,445 | $ | — | $ | 27,388 | ||||||||
(1) | In connection with the Company’s sale of its Source product line in the second quarter of 2014, the Company reduced goodwill associated with the Marine Systems reporting unit. |
Stockholders_Equity_and_StockB
Stockholder's Equity and Stock-Based Compensation | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Stockholders' Equity and Stock-Based Compensation | Stockholders' Equity and Stock-based Compensation | ||||||||||||||||
Stock Option Plans | |||||||||||||||||
The Company has adopted stock option plans for eligible employees, directors and consultants, which provide for the granting of options to purchase shares of common stock. As of December 31, 2014, there were 8,986,025 outstanding options under the Company’s stock option plans, and 2,752,050 shares available for future grant and issuance. | |||||||||||||||||
The options under these plans generally vest in equal annual installments over a four-year period and have a term of ten years. These options are typically granted with an exercise price per share equal to or greater than the current market price and, upon exercise, are issued from the Company’s unissued common shares. In August 2006, the Compensation Committee of the Board of Directors of the Company approved fixed pre-established quarterly grant dates for all future grants of options. | |||||||||||||||||
Transactions under the stock option plans are summarized as follows: | |||||||||||||||||
Option Price | Outstanding | Vested | Available | ||||||||||||||
per Share | for Grant | ||||||||||||||||
January 1, 2012 | $2.49-$16.39 | 6,791,300 | 3,844,538 | 4,793,640 | |||||||||||||
Granted | 5.96-7.16 | 1,544,000 | — | (1,544,000 | ) | ||||||||||||
Vested | — | — | 1,060,275 | — | |||||||||||||
Exercised | 2.49-7.76 | (194,410 | ) | (194,410 | ) | — | |||||||||||
Cancelled/forfeited | 2.49-15.43 | (212,540 | ) | (119,165 | ) | 127,125 | |||||||||||
Restricted stock granted out of option plans | — | — | — | (667,000 | ) | ||||||||||||
Restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans | — | — | — | 229,163 | |||||||||||||
1-Jan-13 | 2.80-16.39 | 7,928,350 | 4,591,238 | 2,938,928 | |||||||||||||
Increase in shares authorized | — | — | — | 3,730,000 | |||||||||||||
Plan Expiration | — | — | — | (79,250 | ) | ||||||||||||
Granted | 3.86-6.64 | 1,788,300 | — | (1,788,300 | ) | ||||||||||||
Vested | — | — | 1,055,412 | — | |||||||||||||
Exercised | 2.80-5.81 | (707,575 | ) | (707,575 | ) | — | |||||||||||
Cancelled/forfeited | 3.00-15.43 | (750,575 | ) | (353,600 | ) | 702,325 | |||||||||||
Restricted stock granted out of option plans | — | — | — | (714,950 | ) | ||||||||||||
Restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans | — | — | — | 232,700 | |||||||||||||
December 31, 2013 | 2.83-16.39 | 8,258,500 | 4,585,475 | 5,021,453 | |||||||||||||
Plan Expiration | — | — | — | (66,783 | ) | ||||||||||||
Granted | 2.47–4.17 | 1,736,400 | — | (1,736,400 | ) | ||||||||||||
Vested | — | — | 1,391,251 | — | |||||||||||||
Exercised | 3 | (28,500 | ) | (28,500 | ) | — | |||||||||||
Cancelled/forfeited | 3.00–15.43 | (980,375 | ) | (572,375 | ) | 216,800 | |||||||||||
Restricted stock granted out of option plans | — | — | — | (727,550 | ) | ||||||||||||
Restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans | — | — | — | 44,530 | |||||||||||||
December 31, 2014 | $2.47–$16.39 | 8,986,025 | 5,375,851 | 2,752,050 | |||||||||||||
Stock options outstanding at December 31, 2014 are summarized as follows: | |||||||||||||||||
Option Price per Share | Outstanding | Weighted Average Exercise Price of Outstanding Options | Weighted Average Remaining Contract Life | Vested | Weighted Average Exercise Price of Vested Options | ||||||||||||
$2.47 - $4.58 | 3,682,125 | $ | 3.8 | 7.5 years | 1,063,826 | $ | 3.54 | ||||||||||
$4.79 - $7.19 | 3,683,700 | $ | 6.23 | 6.7 years | 2,698,075 | $ | 6.28 | ||||||||||
$7.31 - $13.29 | 838,250 | $ | 9.26 | 3.5 years | 832,000 | $ | 9.25 | ||||||||||
$14.03 - $16.39 | 781,950 | $ | 15.25 | 3.2 years | 781,950 | $ | 15.25 | ||||||||||
Totals | 8,986,025 | $ | 6.3 | 6.7 years | 5,375,851 | $ | 7.5 | ||||||||||
Additional information related to the Company’s stock options follows: | |||||||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Grant Date Fair Value | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value (000’s) | |||||||||||||
Total outstanding at January 1, 2014 | 8,258,500 | $ | 6.83 | 6.8 years | |||||||||||||
Options granted | 1,736,400 | $ | 3.96 | $ | 2.41 | ||||||||||||
Options exercised | (28,500 | ) | $ | 3 | |||||||||||||
Options cancelled | (470,500 | ) | $ | 4.94 | |||||||||||||
Options forfeited | (509,875 | ) | $ | 8.27 | |||||||||||||
Total outstanding at December 31, 2014 | 8,986,025 | $ | 6.3 | 6.7 years | $ | 35 | |||||||||||
Options exercisable and vested at December 31, 2014 | 5,375,851 | $ | 7.5 | 5.2 years | $ | — | |||||||||||
The total intrinsic value of options exercised during 2014, 2013 and 2012 was less than $0.1 million, $2.0 million and $0.6 million, respectively. Cash received from option exercises under all share-based payment arrangements for 2014, 2013 and 2012 was $0.1 million, $2.5 million and $0.8 million, respectively. The weighted average grant date fair value for stock option awards granted during 2014, 2013 and 2012 was $2.41, $2.52 and $3.54 per share, respectively. | |||||||||||||||||
Restricted Stock and Restricted Stock Unit Plans | |||||||||||||||||
The Company has issued restricted stock and restricted stock units under the Company’s 2013 Long-Term Incentive Plan and other applicable plans. Restricted stock units are awards that obligate the Company to issue a specific number of shares of common stock in the future if continued service vesting requirements are met. Non-forfeitable ownership of the common stock will vest over a period as determined by the Company in its sole discretion, generally in equal annual installments over a three-year period. Shares of restricted stock awarded may not be sold, assigned, transferred, pledged or otherwise encumbered by the grantee during the vesting period. | |||||||||||||||||
The status of the Company’s restricted stock and restricted stock unit awards for 2014 follows: | |||||||||||||||||
Number of | |||||||||||||||||
Shares/Units | |||||||||||||||||
Total nonvested at January 1, 2014 | 1,052,408 | ||||||||||||||||
Granted | 727,550 | ||||||||||||||||
Vested | (662,451 | ) | |||||||||||||||
Forfeited | (120,814 | ) | |||||||||||||||
Total nonvested at December 31, 2014 | 996,693 | ||||||||||||||||
At December 31, 2014, the intrinsic value of restricted stock and restricted stock unit awards was approximately $2.7 million. The weighted average grant date fair value for restricted stock and restricted stock unit awards granted during 2014, 2013 and 2012 was $3.98, $4.08 and $6.05 per share, respectively. The total fair value of shares vested during 2014, 2013 and 2012 was $2.1 million, $2.4 million and $4.6 million, respectively. | |||||||||||||||||
Employee Stock Purchase Plan | |||||||||||||||||
In June 2010, the Company adopted an Employee Stock Purchase Plan (“ESPP”) to replace the prior ESPP, which terminated on December 31, 2008. The ESPP allows all eligible employees to authorize payroll deductions at a rate of 1% to 10% of base compensation (or a fixed amount per pay period) for the purchase of the Company’s common stock. Each participant is limited to purchase no more than 500 shares per offering period or 1,000 shares annually. Additionally, no participant may purchase shares in any calendar year that exceeds $10,000 in fair market value based on the fair market value of the stock on the offering commencement date. The purchase price of the common stock is the lesser of 85% of the closing price on the first day of the applicable offering period (or most recently preceding trading day) or 85% of the closing price on the last day of the offering period (or most recently preceding trading day). Each offering period is six months and commences on February 1 and August 1 of each year. The ESPP is considered a compensatory plan under ASC 718, and the Company recorded compensation expense of approximately $0.2 million, $0.2 million and $0.3 million during 2014, 2013 and 2012, respectively. The expense represents the estimated fair value of the look-back purchase option. The fair value was determined using the Black-Scholes option pricing model and was recognized over the purchase period. The total number of shares of common stock authorized and available for issuance under the ESPP is 928,924. The maximum number of shares of common stock that may be purchased for each offering period is 100,000 (200,000 annually). | |||||||||||||||||
Stock Appreciation Rights Plan | |||||||||||||||||
The Company has adopted a stock appreciation rights plan which provides for the award of stock appreciation rights (“SARs”) to directors and selected key employees and consultants. The awards under this plan are subject to the terms and conditions set forth in agreements between the Company and the holders. The exercise price per SAR is not to be less than one hundred percent of the fair market value of a share of common stock on the date of grant of the SAR. The term of each SAR shall not exceed ten years from the grant date. Upon exercise of a SAR, the holder shall receive a cash payment in an amount equal to the spread specified in the SAR agreement for which the SAR is being exercised. In no event will any shares of common stock be issued, transferred or otherwise distributed under the plan. | |||||||||||||||||
As of December 31, 2014, the Company had outstanding 140,000 SAR awards to one individual with an exercise price of $3.00. The Company recorded less than $0.1 million, annually, of share-based compensation expense during 2014, 2013 and 2012, related to employee stock appreciation rights. Pursuant to ASC 718, the stock appreciation rights are considered liability awards and as such, these amounts are accrued in the liability section of the balance sheet. | |||||||||||||||||
Valuation Assumptions | |||||||||||||||||
The Company calculated the fair value of each stock option on the date of grant using the Black-Scholes option pricing model. The following assumptions were used for each respective period: | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Risk-free interest rates | 1.6% – 1.7% | 0.9% – 1.8% | 0.7% – 1.0% | ||||||||||||||
Expected lives (in years) | 5.5 | 5.5 | 5.5 | ||||||||||||||
Expected dividend yield | —% | —% | —% | ||||||||||||||
Expected volatility | 65.9% – 70.5% | 62.1% – 70.6% | 67.8% – 72.2% | ||||||||||||||
The computation of expected volatility during 2014, 2013 and 2012 was based on an equally weighted combination of historical volatility and market-based implied volatility. Historical volatility was calculated from historical data for a period of time approximately equal to the expected term of the option award, starting from the date of grant. Market-based implied volatility was derived from traded options on the Company’s common stock having a term of six months. The Company’s computation of expected life in 2014, 2013 and 2012 was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. The risk-free interest rate assumption is based upon the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. | |||||||||||||||||
Stock-based Compensation Expense | |||||||||||||||||
The following table summarizes stock-based compensation expense for the years ended December 31, 2014, 2013 and 2012 as follows (in thousands): | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Stock-based compensation expense | $ | 8,707 | $ | 7,476 | $ | 6,598 | |||||||||||
Tax benefit related thereto | (2,908 | ) | (2,469 | ) | (2,056 | ) | |||||||||||
Stock-based compensation expense, net of tax | $ | 5,799 | $ | 5,007 | $ | 4,542 | |||||||||||
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information and Non-cash Activity | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||||||
Supplemental Cash Flow Information and Non-cash Activity | Supplemental Cash Flow Information and Non-cash Activity | |||||||||||
Supplemental disclosure of cash flow information follows (in thousands): | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Cash paid during the period for: | ||||||||||||
Interest | $ | 16,582 | $ | 9,576 | $ | 4,625 | ||||||
Income taxes | 16,124 | 15,872 | 18,146 | |||||||||
Non-cash items from investing and financing activities: | ||||||||||||
Purchase of computer equipment financed through capital leases | 12,153 | 6,455 | 4,647 | |||||||||
Leasehold improvement paid by landlord | — | 5,000 | — | |||||||||
Conversion of the Company's investment in a convertible note to equity | 3,151 | 6,765 | — | |||||||||
Transfer of inventory to property, plant and equipment | 10,149 | 1,422 | 6,737 | |||||||||
Purchases of property, plant, and equipment and seismic rental equipment financed through accounts payable | 472 | 909 | — | |||||||||
Sale of rental equipment financed with a note receivable | — | 3,636 | — | |||||||||
Operating_Leases
Operating Leases | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases, Operating [Abstract] | |||||
Operating Leases | Operating Leases | ||||
Lessee. The Company leases certain equipment, offices and warehouse space under non-cancelable operating leases. Rental expense was $12.9 million, $12.4 million and $14.4 million for 2014, 2013 and 2012, respectively. | |||||
A summary of future rental commitments over the next five years under non-cancelable operating leases follows (in thousands): | |||||
Years Ending December 31, | |||||
2015 | $ | 29,604 | (a) | ||
2016 | 11,428 | (a) | |||
2017 | 9,519 | ||||
2018 | 8,808 | ||||
2019 | 8,730 | ||||
Total | $ | 68,089 | |||
(a) | Includes $19.9 million and $1.7 million of vessel leases for 2015 and 2016, respectively. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 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 Notes. Since 2011, the Company has invested in and owned a cost–method investment in a privately-owned U.S.–based technology company. As of December 31, 2013, that investment included ownership of approximately 16.0% of the common shares of the investee and $4.0 million loaned to the investee through a promissory note under a credit facility agreement the Company made available to the investee. During 2014, the Company converted this note into additional shares of the investee. | |
In November 2014, the Company sold its total investment in the investee for total proceeds of approximately $16.5 million, of which $14.1 million was due and paid at closing. In connection with the sale, the Company recorded a gain of approximately $5.5 million. Prior to the sale of the investment, the Company had been performing a fair value analysis using Level 3 inputs. These inputs included a market approach, including terms and likelihood of an investment event. | |
Fair Value of Other Financial Instruments. Due to their highly liquid nature, the amount of the Company’s other financial instruments, including cash and cash equivalents, accounts and unbilled receivables, notes receivable, accounts payable and accrued multi-client data library royalties, represent their approximate fair value. | |
The carrying amounts of the Company’s long-term debt as of December 31, 2014 and 2013 were $190.6 million and $220.2 million, respectively, compared to its fair values of $162.6 million and $190.4 million as of December 31, 2014 and 2013, respectively. The fair value of the long-term debt was calculated using Level 1 inputs, including an active market price. |
Benefit_Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | Benefit Plans |
The Company has a 401(k) retirement savings plan, which covers substantially all employees. Employees may voluntarily contribute up to 60% of their compensation, as defined, to the plan. Effective June 1, 2000, the Company adopted a company matching contribution to the 401(k) plan. The Company matched the employee contribution at a rate of 50% of the first 6% of compensation contributed to the plan. Company contributions to the plans were $1.8 million, $1.7 million and $1.4 million, during 2014, 2013 and 2012, respectively. |
Legal_Matters
Legal Matters | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters | Legal Matters |
WesternGeco | |
In June 2009, WesternGeco L.L.C. (“WesternGeco”) filed a lawsuit against the Company in the United States District Court for the Southern District of Texas, Houston Division. In the lawsuit, styled WesternGeco L.L.C. v. ION Geophysical Corporation, WesternGeco alleged that the Company 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 damage 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 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 in September 2014. WesternGeco’s appeal brief was filed in October 2014. Oral arguments have been scheduled for March 5, 2015. If the adverse ruling is affirmed, the Company intends to pursue all available opportunities to make further appeals. | |
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. 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 a material 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. |
Selected_Quarterly_Information
Selected Quarterly Information (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Selected Quarterly Information (Unaudited) | Selected Quarterly Information — (Unaudited) | |||||||||||||||
A summary of selected quarterly information follows (in thousands, except per share amounts): | ||||||||||||||||
Three Months Ended | ||||||||||||||||
Year Ended December 31, 2014 | March 31 | June 30 | September 30 | December 31 | ||||||||||||
Service revenues | $ | 110,696 | $ | 89,767 | $ | 71,923 | $ | 112,552 | ||||||||
Product revenues | 34,002 | 31,713 | 34,617 | 24,288 | ||||||||||||
Total net revenues | 144,698 | 121,480 | 106,540 | 136,840 | ||||||||||||
Gross profit (loss) | 56,854 | 38,228 | 29,223 | (62,082 | ) | |||||||||||
Income (loss) from operations | 19,671 | 3,785 | (5,349 | ) | (136,036 | ) | ||||||||||
Interest expense, net | (4,797 | ) | (4,934 | ) | (5,048 | ) | (4,603 | ) | ||||||||
Equity in losses of Investments | (1,688 | ) | (1,781 | ) | (5,558 | ) | (40,458 | ) | ||||||||
Other income (expense) | 68,526 | 6,066 | (622 | ) | 5,890 | |||||||||||
Income tax expense | 5,263 | 653 | 8,345 | 6,321 | ||||||||||||
Net (income) loss attributable to noncontrolling interests | (470 | ) | (1,295 | ) | 381 | 650 | ||||||||||
Net income (loss) applicable to common shares | $ | 75,979 | $ | 1,188 | $ | (24,541 | ) | $ | (180,878 | ) | ||||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 0.46 | $ | 0.01 | $ | (0.15 | ) | $ | (1.10 | ) | ||||||
Diluted | $ | 0.46 | $ | 0.01 | $ | (0.15 | ) | $ | (1.10 | ) | ||||||
Three Months Ended | ||||||||||||||||
Year Ended December 31, 2013 | March 31 | June 30 | September 30 | December 31 | ||||||||||||
Service revenues | $ | 89,949 | $ | 89,603 | $ | 44,679 | $ | 167,086 | ||||||||
Product revenues | 39,788 | 31,312 | 35,159 | 51,591 | ||||||||||||
Total net revenues | 129,737 | 120,915 | 79,838 | 218,677 | ||||||||||||
Gross profit (loss) | 34,957 | 36,618 | (15,104 | ) | 102,842 | |||||||||||
Income (loss) from operations | 1,923 | 6,770 | (56,528 | ) | 64,231 | |||||||||||
Interest expense, net | (1,066 | ) | (2,756 | ) | (4,281 | ) | (4,241 | ) | ||||||||
Equity in earnings (losses) of Investments | 1,116 | (6,338 | ) | (5,192 | ) | (31,906 | ) | |||||||||
Other income (expense) | 1,027 | (107,118 | ) | (74,301 | ) | (2,138 | ) | |||||||||
Income tax expense (benefit) | 1,201 | (38,705 | ) | 56,954 | 6,270 | |||||||||||
Net (income) loss attributable to noncontrolling interests | 76 | (59 | ) | 498 | 143 | |||||||||||
Preferred stock dividends | 338 | 338 | 5,338 | — | ||||||||||||
Net income (loss) applicable to common shares | $ | 1,537 | $ | (71,134 | ) | $ | (202,096 | ) | $ | 19,819 | ||||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 0.01 | $ | (0.45 | ) | $ | (1.29 | ) | $ | 0.12 | ||||||
Diluted | $ | 0.01 | $ | (0.45 | ) | $ | (1.29 | ) | $ | 0.12 | ||||||
Certain_Relationships_and_Rela
Certain Relationships and Related Party Transactions | 12 Months Ended |
Dec. 31, 2014 | |
Related Party Transactions [Abstract] | |
Certain Relationships and Related Party Transactions | Certain Relationships and Related Party Transactions |
For 2014, 2013 and 2012, the Company recorded revenues from BGP of $6.5 million, $8.0 million and $13.7 million, respectively. Receivables due from BGP were $1.1 million and $1.5 million at December 31, 2014 and 2013, respectively. BGP owned approximately 14.5% of the Company’s outstanding common stock as of December 31, 2014. At December 31, 2014, the Company owed BGP $1.3 million for unpaid services received for a seismic acquisition project. | |
Mr. James M. Lapeyre, Jr. is the Chairman of the Board on ION’s board of directors and a significant equity owner of Laitram, L.L.C. (Laitram), and he has served as president of Laitram and its predecessors since 1989. Laitram is a privately-owned, New Orleans-based manufacturer of food processing equipment and modular conveyor belts. Mr. Lapeyre and Laitram together owned approximately 6.4% of the Company’s outstanding common stock as of December 31, 2014. | |
The Company acquired DigiCourse, Inc., the Company’s marine positioning products business, from Laitram in 1998. In connection with that acquisition, the Company entered into a Continued Services Agreement with Laitram under which Laitram agreed to provide the Company certain bookkeeping, software, manufacturing and maintenance services. Manufacturing services consist primarily of machining of parts for the Company’s marine positioning systems. The term of this agreement expired in September 2001 but the Company continues to operate under its terms. In addition, from time to time, when the Company has requested, the legal staff of Laitram has advised the Company on certain intellectual property matters with regard to the Company’s marine positioning systems. Under an amended lease of commercial property dated February 1, 2006, between Lapeyre Properties, L.L.C. (an affiliate of Laitram) and ION, the Company had previously leased certain office and warehouse space from Lapeyre Properties that was vacated in 2013. During 2014, the Company paid Laitram and its affiliates a total of approximately $2.4 million, which consisted of approximately $2.3 million for manufacturing services, and $0.1 million for reimbursement for costs related to providing administrative and other back-office support services in connection with the Company’s Louisiana marine operations. For the 2013 and 2012 fiscal years, the Company paid Laitram and its affiliates a total of approximately $4.2 million and $4.1 million, respectively, for these services. In the opinion of the Company’s management, the terms of these services are fair and reasonable and as favorable to the Company as those that could have been obtained from unrelated third parties at the time of their performance. | |
In July 2013, the Company agreed to lend up to $10.0 million to INOVA Geophysical, and received a promissory note issued by INOVA Geophysical to the order of the Company, which was scheduled to mature on September 30, 2013. The maturity date of the promissory note was 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 remained outstanding at December 31, 2014. The term of the note has not been extended past December 31, 2014 and INOVA has advised the Company that it is not currently able to repay the outstanding amount. In connection with the preparation of these financial statements, the Company wrote down the book value of this receivable to zero. | |
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 the Company’s New Credit Facility, see Footnote 6 “Long-term Debt and Lease Obligations.” |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 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 | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||||||||||
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information | |||||||||||||||||||
In May 2013, the Company sold $175 million of Senior Secured Second-Priority Notes. The notes were issued by ION Geophysical Corporation, and are guaranteed by the Company’s current material U.S. subsidiaries: GX Technology Corporation, ION Exploration Products (U.S.A.), Inc. and I/O Marine Systems, Inc. (“the Guarantors”), which are 100-percent-owned subsidiaries. The Guarantors have fully and unconditionally guaranteed the payment obligations of ION Geophysical Corporation with respect to these debt securities. The following condensed consolidating financial information presents the results of operations, financial position and cash flows for: | ||||||||||||||||||||
• | ION Geophysical Corporation and the guarantor subsidiaries (in each case, reflecting investments in subsidiaries utilizing the equity method of accounting). | |||||||||||||||||||
• | All other nonguarantor subsidiaries. | |||||||||||||||||||
• | The consolidating adjustments necessary to present ION Geophysical Corporation’s results on a consolidated basis. | |||||||||||||||||||
This condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements and notes. | ||||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Balance Sheet | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 109,514 | $ | — | $ | 64,094 | $ | — | $ | 173,608 | ||||||||||
Accounts receivable, net | 123 | 49,892 | 64,310 | — | 114,325 | |||||||||||||||
Unbilled receivables | — | 18,548 | 4,051 | — | 22,599 | |||||||||||||||
Inventories | — | 4,013 | 47,149 | — | 51,162 | |||||||||||||||
Prepaid expenses and other current assets | 6,692 | 2,697 | 8,769 | (4,496 | ) | 13,662 | ||||||||||||||
Total current assets | 116,329 | 75,150 | 188,373 | (4,496 | ) | 375,356 | ||||||||||||||
Deferred income tax asset | (7,852 | ) | 6,675 | 749 | 9,032 | 8,604 | ||||||||||||||
Property, plant, equipment and seismic rental equipment, net | 6,412 | 33,065 | 30,363 | — | 69,840 | |||||||||||||||
Multi-client data library, net | — | 96,423 | 22,246 | — | 118,669 | |||||||||||||||
Investment in subsidiaries | 675,499 | 278,294 | — | (953,793 | ) | — | ||||||||||||||
Goodwill | — | — | 27,388 | — | 27,388 | |||||||||||||||
Intangible assets, net | — | 6,254 | 534 | — | 6,788 | |||||||||||||||
Intercompany receivables | 29,979 | — | — | (29,979 | ) | — | ||||||||||||||
Other assets | 10,191 | 147 | 274 | — | 10,612 | |||||||||||||||
Total assets | $ | 830,558 | $ | 496,008 | $ | 269,927 | $ | (979,236 | ) | $ | 617,257 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Current maturities of long-term debt | $ | — | $ | 6,965 | $ | 684 | $ | — | $ | 7,649 | ||||||||||
Accounts payable | 4,308 | 12,028 | 20,527 | — | 36,863 | |||||||||||||||
Accrued expenses | 3,904 | 34,738 | 21,807 | 4,815 | 65,264 | |||||||||||||||
Accrued multi-client data library royalties | — | 34,624 | 595 | — | 35,219 | |||||||||||||||
Deferred revenue | — | 5,263 | 2,999 | — | 8,262 | |||||||||||||||
Total current liabilities | 8,212 | 93,618 | 46,612 | 4,815 | 153,257 | |||||||||||||||
Long-term debt, net of current maturities | 175,000 | 7,839 | 106 | — | 182,945 | |||||||||||||||
Intercompany payables | 509,124 | 8,892 | 21,087 | (539,103 | ) | — | ||||||||||||||
Other long-term liabilities | 2,609 | 130,985 | 10,489 | (279 | ) | 143,804 | ||||||||||||||
Total liabilities | 694,945 | 241,334 | 78,294 | (534,567 | ) | 480,006 | ||||||||||||||
Redeemable noncontrolling interest | — | — | 1,539 | — | 1,539 | |||||||||||||||
Equity: | ||||||||||||||||||||
Common stock | 1,645 | 290,460 | 19,138 | (309,598 | ) | 1,645 | ||||||||||||||
Additional paid-in capital | 887,749 | 180,700 | 234,234 | (414,934 | ) | 887,749 | ||||||||||||||
Accumulated earnings (deficit) | (734,409 | ) | 208,846 | 26,981 | (235,827 | ) | (734,409 | ) | ||||||||||||
Accumulated other comprehensive income (loss) | (12,807 | ) | 6,229 | (12,795 | ) | 6,566 | (12,807 | ) | ||||||||||||
Due from ION Geophysical Corporation | — | (431,561 | ) | (77,563 | ) | 509,124 | — | |||||||||||||
Treasury stock | (6,565 | ) | — | — | — | (6,565 | ) | |||||||||||||
Total stockholders’ equity | 135,613 | 254,674 | 189,995 | (444,669 | ) | 135,613 | ||||||||||||||
Noncontrolling interests | — | — | 99 | — | 99 | |||||||||||||||
Total equity | 135,613 | 254,674 | 190,094 | (444,669 | ) | 135,712 | ||||||||||||||
Total liabilities and equity | $ | 830,558 | $ | 496,008 | $ | 269,927 | $ | (979,236 | ) | $ | 617,257 | |||||||||
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 | |||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Total net revenues | $ | — | $ | 221,008 | $ | 291,302 | $ | (2,752 | ) | $ | 509,558 | |||||||||
Cost of goods sold | — | 262,829 | 187,258 | (2,752 | ) | 447,335 | ||||||||||||||
Gross profit (loss) | — | (41,821 | ) | 104,044 | — | 62,223 | ||||||||||||||
Total operating expenses | 38,961 | 88,481 | 52,710 | — | 180,152 | |||||||||||||||
Income (loss) from operations | (38,961 | ) | (130,302 | ) | 51,334 | — | (117,929 | ) | ||||||||||||
Interest expense, net | (18,537 | ) | (245 | ) | (600 | ) | — | (19,382 | ) | |||||||||||
Intercompany interest, net | (340 | ) | 2,146 | (1,806 | ) | — | — | |||||||||||||
Equity in earnings (losses) of investments | (74,615 | ) | 32,043 | 738 | (7,651 | ) | (49,485 | ) | ||||||||||||
Other income | 4,536 | 74,295 | 1,029 | — | 79,860 | |||||||||||||||
Income (loss) before income taxes | (127,917 | ) | (22,063 | ) | 50,695 | (7,651 | ) | (106,936 | ) | |||||||||||
Income tax expense | 335 | 1,277 | 18,970 | — | 20,582 | |||||||||||||||
Net income (loss) | (128,252 | ) | (23,340 | ) | 31,725 | (7,651 | ) | (127,518 | ) | |||||||||||
Net income attributable to noncontrolling interests | — | — | (734 | ) | — | (734 | ) | |||||||||||||
Net income (loss) applicable to common shares | $ | (128,252 | ) | $ | (23,340 | ) | $ | 30,991 | $ | (7,651 | ) | $ | (128,252 | ) | ||||||
Comprehensive net income (loss) | $ | (129,921 | ) | $ | (23,329 | ) | $ | 30,850 | $ | (6,787 | ) | $ | (129,187 | ) | ||||||
Comprehensive income attributable to noncontrolling interest | — | — | (734 | ) | — | (734 | ) | |||||||||||||
Comprehensive net income (loss) attributable to ION | $ | (129,921 | ) | $ | (23,329 | ) | $ | 30,116 | $ | (6,787 | ) | $ | (129,921 | ) | ||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Total net revenues | $ | — | $ | 337,570 | $ | 213,826 | $ | (2,229 | ) | $ | 549,167 | |||||||||
Cost of goods sold | — | 240,704 | 151,379 | (2,229 | ) | 389,854 | ||||||||||||||
Gross profit | — | 96,866 | 62,447 | — | 159,313 | |||||||||||||||
Total operating expenses | 35,054 | 62,028 | 45,835 | — | 142,917 | |||||||||||||||
Income (loss) from operations | (35,054 | ) | 34,838 | 16,612 | — | 16,396 | ||||||||||||||
Interest expense, net | (12,102 | ) | (49 | ) | (193 | ) | — | (12,344 | ) | |||||||||||
Intercompany interest, net | 411 | (1,374 | ) | 963 | — | — | ||||||||||||||
Equity in earnings (losses) of investments | (192,220 | ) | (19,755 | ) | (19,833 | ) | 189,488 | (42,320 | ) | |||||||||||
Other income (expense) | 12,166 | (193,289 | ) | (1,407 | ) | — | (182,530 | ) | ||||||||||||
Income (loss) before income taxes | (226,799 | ) | (179,629 | ) | (3,858 | ) | 189,488 | (220,798 | ) | |||||||||||
Income tax expense (benefit) | 19,061 | (10,883 | ) | 17,542 | — | 25,720 | ||||||||||||||
Net income (loss) | (245,860 | ) | (168,746 | ) | (21,400 | ) | 189,488 | (246,518 | ) | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 658 | — | 658 | |||||||||||||||
Net income (loss) attributable to ION | (245,860 | ) | (168,746 | ) | (20,742 | ) | 189,488 | (245,860 | ) | |||||||||||
Payment of preferred dividends and conversion payment | 6,014 | — | — | — | 6,014 | |||||||||||||||
Net income (loss) applicable to common shares | $ | (251,874 | ) | $ | (168,746 | ) | $ | (20,742 | ) | $ | 189,488 | $ | (251,874 | ) | ||||||
Comprehensive net income (loss) | $ | (245,112 | ) | $ | (168,167 | ) | $ | (20,779 | ) | $ | 188,288 | $ | (245,770 | ) | ||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 658 | — | 658 | |||||||||||||||
Comprehensive net income (loss) attributable to ION | $ | (245,112 | ) | $ | (168,167 | ) | $ | (20,121 | ) | $ | 188,288 | $ | (245,112 | ) | ||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Total net revenues | $ | — | $ | 311,758 | $ | 214,939 | $ | (380 | ) | $ | 526,317 | |||||||||
Cost of goods sold | — | 192,639 | 118,257 | (380 | ) | 310,516 | ||||||||||||||
Gross profit | — | 119,119 | 96,682 | — | 215,801 | |||||||||||||||
Total operating expenses | 35,982 | 61,315 | 43,977 | — | 141,274 | |||||||||||||||
Income (loss) from operations | (35,982 | ) | 57,804 | 52,705 | — | 74,527 | ||||||||||||||
Interest expense, net | (5,137 | ) | 198 | (326 | ) | — | (5,265 | ) | ||||||||||||
Intercompany interest, net | 232 | (629 | ) | 397 | — | — | ||||||||||||||
Equity in earnings (losses) of investments | 58,162 | 33,958 | — | (91,823 | ) | 297 | ||||||||||||||
Other income (expense) | 29,447 | (10,334 | ) | (1,989 | ) | — | 17,124 | |||||||||||||
Income (loss) before income taxes | 46,722 | 80,997 | 50,787 | (91,823 | ) | 86,683 | ||||||||||||||
Income tax expense (benefit) | (16,593 | ) | 21,771 | 18,679 | — | 23,857 | ||||||||||||||
Net income (loss) | 63,315 | 59,226 | 32,108 | (91,823 | ) | 62,826 | ||||||||||||||
Net loss attributable to noncontrolling interests | — | — | 489 | — | 489 | |||||||||||||||
Net income (loss) attributable to ION | 63,315 | 59,226 | 32,597 | (91,823 | ) | 63,315 | ||||||||||||||
Preferred stock dividends | 1,352 | — | — | — | 1,352 | |||||||||||||||
Net income (loss) applicable to common shares | $ | 61,963 | $ | 59,226 | $ | 32,597 | $ | (91,823 | ) | $ | 61,963 | |||||||||
Comprehensive net income (loss) | $ | 67,622 | $ | 62,085 | $ | 34,967 | $ | (97,541 | ) | $ | 67,133 | |||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 489 | — | 489 | |||||||||||||||
Comprehensive net income (loss) attributable to ION | $ | 67,622 | $ | 62,085 | $ | 35,456 | $ | (97,541 | ) | $ | 67,622 | |||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Statement of Cash Flows | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Total Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (53,925 | ) | $ | 107,590 | $ | 76,115 | $ | 129,780 | |||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Investment in multi-client data library | — | (67,552 | ) | (233 | ) | (67,785 | ) | |||||||||||||
Purchase of property, plant, equipment and seismic rental equipment | (1,240 | ) | (4,530 | ) | (2,494 | ) | (8,264 | ) | ||||||||||||
Repayment of advances by INOVA Geophysical | 1,000 | — | — | 1,000 | ||||||||||||||||
Net investment in and advances to OceanGeo B.V. prior to its consolidation | — | — | (3,074 | ) | (3,074 | ) | ||||||||||||||
Net proceeds from sale of Source product line | — | 9,881 | 4,513 | 14,394 | ||||||||||||||||
Proceeds from sale of cost method investments | 14,051 | — | — | 14,051 | ||||||||||||||||
Other investing activities | 579 | 26 | 323 | 928 | ||||||||||||||||
Net cash provided by (used in) investing activities | 14,390 | (62,175 | ) | (965 | ) | (48,750 | ) | |||||||||||||
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 | — | (5,384 | ) | (7,614 | ) | (12,998 | ) | |||||||||||||
Cost associated with issuance of debt | (2,194 | ) | — | — | (2,194 | ) | ||||||||||||||
Intercompany lending | 61,324 | (40,031 | ) | (21,293 | ) | — | ||||||||||||||
Acquisition of noncontrolling interest | — | — | (6,000 | ) | (6,000 | ) | ||||||||||||||
Proceeds from employee stock purchases and exercise of stock options | 577 | — | — | 577 | ||||||||||||||||
Other financing activities | (359 | ) | — | — | (359 | ) | ||||||||||||||
Net cash provided by (used in) financing activities | 24,348 | (45,415 | ) | (34,907 | ) | (55,974 | ) | |||||||||||||
Effect of change in foreign currency exchange rates on cash and cash equivalents | — | — | 496 | 496 | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (15,187 | ) | — | 40,739 | 25,552 | |||||||||||||||
Cash and cash equivalents at beginning of period | 124,701 | — | 23,355 | 148,056 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 109,514 | $ | — | $ | 64,094 | $ | 173,608 | ||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Statement of Cash Flows | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (50,731 | ) | $ | 166,838 | $ | 31,480 | $ | — | $ | 147,587 | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Investment in multi-client data library | — | (111,689 | ) | (2,893 | ) | — | (114,582 | ) | ||||||||||||
Purchase of property, plant, equipment and seismic rental equipment | (2,075 | ) | (10,171 | ) | (4,668 | ) | — | (16,914 | ) | |||||||||||
Net advances to INOVA Geophysical | (5,000 | ) | — | — | — | (5,000 | ) | |||||||||||||
Investment in and advances to OceanGeo B.V. | — | — | (24,755 | ) | — | (24,755 | ) | |||||||||||||
Proceeds from sale of cost method investments | 4,150 | — | — | — | 4,150 | |||||||||||||||
Investment in convertible notes | (2,000 | ) | — | — | — | (2,000 | ) | |||||||||||||
Capital contribution to affiliate | (5,695 | ) | (7,897 | ) | — | 13,592 | — | |||||||||||||
Other investing activities | — | 128 | — | — | 128 | |||||||||||||||
Net cash provided by (used in) investing activities | (10,620 | ) | (129,629 | ) | (32,316 | ) | 13,592 | (158,973 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from issuance of notes | 175,000 | — | — | — | 175,000 | |||||||||||||||
Payments under revolving line of credit | (97,250 | ) | — | — | — | (97,250 | ) | |||||||||||||
Borrowings under revolving line of credit | 35,000 | — | — | — | 35,000 | |||||||||||||||
Payments on notes payable and long-term debt | — | (3,249 | ) | (1,112 | ) | — | (4,361 | ) | ||||||||||||
Cost associated with issuance of debt | (6,773 | ) | — | — | — | (6,773 | ) | |||||||||||||
Capital contribution from affiliate | — | 5,695 | 7,897 | (13,592 | ) | — | ||||||||||||||
Intercompany lending | 52,646 | (39,655 | ) | (12,991 | ) | — | — | |||||||||||||
Payment of preferred dividends | (6,014 | ) | — | — | — | (6,014 | ) | |||||||||||||
Proceeds from employee stock purchases and exercise of stock options | 2,527 | — | — | — | 2,527 | |||||||||||||||
Other financing activities | 573 | — | — | — | 573 | |||||||||||||||
Net cash provided by (used in) financing activities | 155,709 | (37,209 | ) | (6,206 | ) | (13,592 | ) | 98,702 | ||||||||||||
Effect of change in foreign currency exchange rates on cash and cash equivalents | — | — | (231 | ) | — | (231 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 94,358 | — | (7,273 | ) | — | 87,085 | ||||||||||||||
Cash and cash equivalents at beginning of period | 30,343 | — | 30,628 | — | 60,971 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 124,701 | $ | — | $ | 23,355 | $ | — | $ | 148,056 | ||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Statement of Cash Flows | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Total Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net cash provided by operating activities | $ | 19,362 | $ | 105,768 | $ | 43,951 | $ | 169,081 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Investment in multi-client data library | — | (121,424 | ) | (24,203 | ) | (145,627 | ) | |||||||||||||
Purchase of property, plant, equipment and seismic rental equipment | (2,485 | ) | (9,947 | ) | (4,218 | ) | (16,650 | ) | ||||||||||||
Maturity of short-term investments | 20,000 | — | — | 20,000 | ||||||||||||||||
Investment in convertible notes | (2,000 | ) | — | — | (2,000 | ) | ||||||||||||||
Net cash provided by (used in) investing activities | 15,515 | (131,371 | ) | (28,421 | ) | (144,277 | ) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Payments under revolving line of credit | (51,000 | ) | — | — | (51,000 | ) | ||||||||||||||
Borrowings under revolving line of credit | 148,250 | — | — | 148,250 | ||||||||||||||||
Payments on notes payable and long-term debt | (99,270 | ) | (1,626 | ) | (806 | ) | (101,702 | ) | ||||||||||||
Intercompany lending | (21,699 | ) | 27,229 | (5,530 | ) | — | ||||||||||||||
Payment of preferred dividends | (1,352 | ) | — | — | (1,352 | ) | ||||||||||||||
Proceeds from employee stock purchases and exercise of stock options | 807 | — | — | 807 | ||||||||||||||||
Other financing activities | (1,669 | ) | — | 212 | (1,457 | ) | ||||||||||||||
Net cash provided by (used in) financing activities | (25,933 | ) | 25,603 | (6,124 | ) | (6,454 | ) | |||||||||||||
Effect of change in foreign currency exchange rates on cash and cash equivalents | 2 | — | 217 | 219 | ||||||||||||||||
Net increase in cash and cash equivalents | 8,946 | — | 9,623 | 18,569 | ||||||||||||||||
Cash and cash equivalents at beginning of period | 21,397 | — | 21,005 | 42,402 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 30,343 | $ | — | $ | 30,628 | $ | 60,971 | ||||||||||||
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||
Valuation and Qualifying Accounts | SCHEDULE II | |||||||||||||||
ION GEOPHYSICAL CORPORATION AND SUBSIDIARIES | ||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||
Year Ended December 31, 2012 | Balance at | Charged (Credited) to | Deductions | Balance at | ||||||||||||
Beginning of Year | Costs and Expenses | End of Year | ||||||||||||||
(In thousands) | ||||||||||||||||
Allowances for doubtful accounts | $ | 1,198 | $ | 5,811 | $ | (298 | ) | $ | 6,711 | |||||||
Warranty | 715 | 1,258 | (932 | ) | 1,041 | |||||||||||
Valuation allowance on deferred tax assets | 69,475 | (6,214 | ) | — | 63,261 | |||||||||||
Excess and obsolete inventory | 13,037 | 1,326 | (124 | ) | 14,239 | |||||||||||
Year Ended December 31, 2013 | Balance at | Charged (Credited) to | Deductions | Balance at | ||||||||||||
Beginning of Year | Costs and Expenses | End of Year | ||||||||||||||
(In thousands) | ||||||||||||||||
Allowances for doubtful accounts | $ | 6,711 | $ | 12,040 | $ | (11,529 | ) | $ | 7,222 | |||||||
Warranty | 1,041 | 538 | (936 | ) | 643 | |||||||||||
Valuation allowance on deferred tax assets | 63,261 | 88,112 | (338 | ) | 151,035 | |||||||||||
Excess and obsolete inventory | 14,239 | 18,644 | (328 | ) | 32,555 | |||||||||||
Year Ended December 31, 2014 | Balance at | Charged (Credited) to | Deductions | Balance at | ||||||||||||
Beginning of Year | Costs and Expenses | End of Year | ||||||||||||||
(In thousands) | ||||||||||||||||
Allowances for doubtful accounts | $ | 7,222 | $ | 7,275 | $ | (6,864 | ) | $ | 7,633 | |||||||
Allowances for doubtful notes receivable | — | 4,000 | — | 4,000 | ||||||||||||
Warranty | 643 | 381 | (625 | ) | 399 | |||||||||||
Valuation allowance on deferred tax assets | 151,035 | 54,229 | — | 205,264 | ||||||||||||
Excess and obsolete inventory | 32,555 | 6,952 | (9,703 | ) | 29,804 | |||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
General Description and Principles of Consolidation | General Description and Principles of Consolidation | |
ION Geophysical Corporation and its subsidiaries offer a full suite of services and products for seismic data acquisition and processing. The consolidated financial statements include the accounts of ION Geophysical Corporation and its majority-owned subsidiaries (collectively referred to as the “Company” or “ION”). Intercompany balances and transactions have been eliminated. Certain reclassifications were made to previously reported amounts in the consolidated financial statements and notes thereto to make them consistent with the current presentation format. | ||
Use of Estimates | Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates are made at discrete points in time based on relevant market information. These estimates may be subjective in nature and involve uncertainties and matters of judgment and, therefore, cannot be determined with precision. Areas involving significant estimates include, but are not limited to, accounts and unbilled receivables, inventory valuation, sales forecasts related to multi-client data libraries, goodwill and intangible asset valuation and deferred taxes. Actual results could materially differ from those estimates. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. | ||
Accounts Receivable and Allowance for Doubtful Accounts | Accounts and Unbilled Receivables | |
Accounts and unbilled receivables are recorded at cost, less the related allowance for doubtful accounts. The Company considers current information and events regarding the customers’ ability to repay their obligations, such as the length of time the receivable balance is outstanding, the customers’ credit worthiness and historical experience. Unbilled receivables relate to revenues recognized on multi-client surveys, imaging services and ocean bottom acquisition services on a proportionate basis, and on licensing of multi-client data libraries for which invoices have not yet been presented to the customer. | ||
Unbilled Receivables | Accounts and Unbilled Receivables | |
Accounts and unbilled receivables are recorded at cost, less the related allowance for doubtful accounts. The Company considers current information and events regarding the customers’ ability to repay their obligations, such as the length of time the receivable balance is outstanding, the customers’ credit worthiness and historical experience. Unbilled receivables relate to revenues recognized on multi-client surveys, imaging services and ocean bottom acquisition services on a proportionate basis, and on licensing of multi-client data libraries for which invoices have not yet been presented to the customer. | ||
Inventories | Inventories | |
Inventories are stated at the lower of cost (primarily first-in, first-out method) or market. The Company provides reserves for estimated obsolescence or excess inventory equal to the difference between cost of inventory and its estimated market value based upon assumptions about future demand for the Company’s products, market conditions and the risk of obsolescence driven by new product introductions. | ||
Property, Plant, Equipment and Seismic Rental Equipment | Property, Plant, Equipment and Seismic Rental Equipment | |
Property, plant, equipment and seismic rental equipment are stated at cost. Depreciation expense is provided straight-line over the following estimated useful lives: | ||
Years | ||
Machinery and equipment | 7-Mar | |
Buildings | 25-May | |
Seismic rental equipment | 5-Mar | |
Leased equipment and other | 10-Mar | |
Expenditures for renewals and betterments are capitalized; repairs and maintenance are charged to expense as incurred. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the accounts and any gain or loss is reflected in operating expenses. | ||
The Company evaluates the recoverability of long-lived assets, including property, plant, equipment and seismic rental equipment, when indicators of impairment exist, relying on a number of factors including operating results, business plans, economic projections and anticipated future cash flows. Impairment in the carrying value of an asset held for use is recognized whenever anticipated future cash flows (undiscounted) from an asset are estimated to be less than its carrying value. The amount of the impairment recognized is the difference between the carrying value of the asset and its fair value. | ||
Multi-Client Data Library | Multi-Client Data Library | |
The multi-client data library consists of seismic surveys that are offered for licensing to customers on a non-exclusive basis. The capitalized costs include costs paid to third parties for the acquisition of data and related activities associated with the data creation activity and direct internal processing costs, such as salaries, benefits, computer-related expenses and other costs incurred for seismic data project design and management. | ||
The Company’s method of amortizing the costs of an in-process multi-client data library (the period during which the seismic data is being acquired and/or processed, referred to as the “new venture” phase) consists of determining the percentage of actual revenue recognized to the total estimated revenues (which includes both revenues estimated to be realized during the new venture phase and estimated revenues from the licensing of the resulting “on-the-shelf” data survey) and multiplying that percentage by the total cost of the project (the sales forecast method). The Company considers a multi-client data survey to be complete when all work on the creation of the seismic data is finished and that data survey is available for licensing. Once a multi-client data survey is complete, the data survey is considered “on-the-shelf” and the Company’s method of amortization is then the greater of (i) the sales forecast method or (ii) the straight-line basis over a four-year period. The greater amount of amortization resulting from the sales forecast method or the straight-line amortization policy is applied on a cumulative basis at the individual survey level. Under this policy, the Company first records amortization using the sales forecast method. The cumulative amortization recorded for each survey is then compared with the cumulative straight-line amortization. The four-year period utilized in this cumulative comparison commences when the data survey is determined to be complete. If the cumulative straight-line amortization is higher for any specific survey, additional amortization expense is recorded, resulting in accumulated amortization being equal to the cumulative straight-line amortization for such survey. The Company has determined the amortization period of four years based upon its historical experience that indicates that the majority of its revenues from multi-client surveys are derived during the acquisition and processing phases and during four years subsequent to survey completion. | ||
The Company estimates the ultimate revenue expected to be derived from a particular seismic data survey over its estimated useful economic life to determine the costs to amortize, if greater than straight-line amortization. That estimate is made by the Company at the project’s initiation. For a completed multi-client survey, the Company reviews the estimate quarterly. If during any such review, the Company determines that the ultimate revenue for a survey is expected to be materially more or less than the original estimate of ultimate revenue for such survey, the Company decreases or increases (as the case may be) the amortization rate attributable to the future revenue from such survey. In addition, in connection with such reviews, the Company evaluates the recoverability of the multi-client data library, and, if required under Accounting Standards Codification (“ASC”) 360-10 “Impairment and Disposal of Long-Lived Assets,” records an impairment charge with respect to such data. For a discussion of impairments of the Company’s multi-client data library in 2014 and 2013, see Footnote 2 “Impairments, Restructurings and Other Charges.” | ||
Equity Method Investments | Equity Method Investments | |
In accordance with ASC 810 “Consolidation,” the Company determined that INOVA Geophysical is a variable interest entity because the Company’s voting rights with respect to INOVA Geophysical are not proportionate to its ownership interest and substantially all of INOVA Geophysical’s activities are conducted on behalf of the Company and BGP, a related party to the Company. The Company is not the primary beneficiary of INOVA Geophysical because it does not have the power to direct the activities of INOVA Geophysical that most significantly impact its economic performance. Accordingly, the Company does not consolidate INOVA Geophysical, but instead accounts for INOVA Geophysical using the equity method of accounting. Under this method, an investment is carried at the acquisition cost, plus the Company’s equity in undistributed earnings or losses since acquisition, less distributions received. As provided by ASC 815 “Investments,” the Company accounts for its share of earnings in INOVA Geophysical on a one fiscal quarter lag basis. See further discussion regarding the Company’s equity method investment, including the write-down of its investment, in INOVA Geophysical at Footnote 5 “Equity Method Investments.” | ||
Noncontrolling Interests | Noncontrolling Interests | |
The Company has both redeemable and non-redeemable noncontrolling interests. Non-redeemable noncontrolling interests in majority-owned affiliates are reported as a separate component of equity in “Noncontrolling interests” in the Consolidated Balance Sheets. Redeemable noncontrolling interests include noncontrolling ownership interests which provide the holders the rights, at certain times, to require the Company to acquire their ownership interest in those entities. These interests are not considered to be permanent equity and are reported in the mezzanine section of the Consolidated Balance Sheets at the greater of their carrying value or redemption value at the balance sheet date. Net income (loss) in the Consolidated Statements of Operations is attributable to both controlling and noncontrolling interests. | ||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | |
Goodwill is allocated to reporting units, which are either the operating segment or one reporting level below the operating segment. For purposes of performing the impairment test for goodwill as required by ASC 350 “Intangibles — Goodwill and Other,” (“ASC 350”) the Company established the following reporting units: Solutions, Software and Marine Systems. | ||
In accordance with ASC 350, the Company is required to evaluate the carrying value of its goodwill at least annually for impairment, or more frequently if facts and circumstances indicate that it is more likely than not impairment has occurred. The Company formally evaluates the carrying value of its goodwill for impairment as of December 31 for each of its reporting units. The Company first performs a qualitative assessment by evaluating relevant events or circumstances to determine whether it is more likely than not that the fair value of a reporting unit exceeds its carrying amount. If the Company is unable to conclude qualitatively that it is more likely than not that a reporting unit’s fair value exceeds its carrying value, then it will use a two-step quantitative assessment of the fair value of a reporting unit. To determine the fair value of these reporting units, the Company uses a discounted future returns valuation model, which includes a variety of level 3 inputs. The key inputs for the model include the operational three-year forecast for the Company and the then-current market discount factor. Additionally, the Company compares the sum of the estimated fair values of the individual reporting units less consolidated debt to the Company’s overall market capitalization as reflected by the Company’s stock price. If the carrying value of a reporting unit that includes goodwill is determined to be more than the fair value of the reporting unit, there exists the possibility of impairment of goodwill. An impairment loss of goodwill is measured in two steps by first allocating the fair value of the reporting unit to net assets and liabilities including recorded and unrecorded intangible assets to determine the implied carrying value of goodwill. The next step is to measure the difference between the carrying value of goodwill and the implied carrying value of goodwill, and, if the implied carrying value of goodwill is less than the carrying value of goodwill, an impairment loss is recorded equal to the difference. See further discussion below at Footnote 11 “Goodwill.” | ||
The intangible assets, other than goodwill, relate to customer relationships. The Company amortizes its customer relationship intangible assets on an accelerated basis over a 10- to 15-year period, using the undiscounted cash flows of the initial valuation models. The Company uses an accelerated basis as these intangible assets were initially valued using an income approach, with an attrition rate that resulted in a pattern of declining cash flows over a 10- to 15-year period. | ||
Following the guidance of ASC 360 “Property, Plant and Equipment,” the Company reviews the carrying values of these intangible assets for impairment if events or changes in the facts and circumstances indicate that their carrying value may not be recoverable. Any impairment determined is recorded in the current period and is measured by comparing the fair value of the related asset to its carrying value. See further discussion below at Footnote 10 “Details of Selected Balance Sheet Accounts — Intangible Assets.” | ||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | |
The Company’s financial instruments include cash and cash equivalents, short-term investments, accounts and unbilled receivables, accounts payable, accrued multi-client data library royalties and long-term debt. The carrying amounts of cash and cash equivalents, short-term investments, accounts and unbilled receivables, accounts payable and accrued multi-client data library royalties approximate fair value due to the highly liquid nature of these instruments. The fair value of the long-term debt is calculated using a market approach based upon Level 1 inputs, including an active market price. | ||
Product Warranty Revenue Recognition | Product Warranty — The Company generally warrants that its manufactured equipment will be free from defects in workmanship, materials and parts. Warranty periods generally range from 30 days to three years from the date of original purchase, depending on the product. The Company provides for estimated warranty as a charge to costs of sales at the time of sale. However, new information may become available, or circumstances (such as applicable laws and regulations) may change, thereby resulting in an increase or decrease in the amount required to be accrued for such matters (and therefore a decrease or increase in reported net income in the period of such change). In limited cases, the Company has provided indemnification of customers for potential intellectual property infringement claims relating to products sold. | |
Revenue Recognition | Revenue Recognition | |
The Company derives revenue from the sale of (i) multi-client and proprietary surveys, licenses of “on-the-shelf” data libraries and imaging services within its Solutions segment; (ii) seismic data acquisition systems and other seismic equipment within its Systems segment; (iii) seismic command and control software systems and software solutions for operations management within its Software segment; and (iv) fully-integrated ocean bottom seismic (“OBS”) solutions that include survey design and planning and data acquisition within its Ocean Bottom Services segment. All revenues of the Solutions and Ocean Bottom Services segments and the services component of revenues for the Software segment are classified as services revenues. All other revenues are classified as product revenues. | ||
Multi-Client and Proprietary Surveys, Data Libraries and Imaging Services — As multi-client surveys are being designed, acquired and/or processed (referred to as the “new venture” phase), the Company enters into non-exclusive licensing arrangements with its customers. License revenues from these new venture survey projects are recognized during the new venture phase as the seismic data is acquired and/or processed on a proportionate basis as work is performed. Under this method, the Company recognizes revenues based upon quantifiable measures of progress, such as kilometers acquired or days processed. Upon completion of a multi-client seismic survey, the seismic survey is considered “on-the-shelf,” and licenses to the survey data are granted to customers on a non-exclusive basis. Revenues on licenses of completed multi-client data surveys are recognized when (a) a signed final master geophysical data license agreement and accompanying supplemental license agreement are returned by the customer; (b) the purchase price for the license is fixed or determinable; (c) delivery or performance has occurred; (d) and no significant uncertainty exists as to the customer’s obligation, willingness or ability to pay. In limited situations, the Company has provided the customer with a right to exchange seismic data for another specific seismic data set. In these limited situations, the Company recognizes revenue at the earlier of the customer exercising its exchange right or the expiration of the customer’s exchange right. | ||
The Company also performs seismic surveys under contracts to specific customers, whereby the seismic data is owned by those customers. Revenue is recognized as the seismic data is acquired and/or processed on a proportionate basis as work is performed. The Company uses quantifiable measures of progress consistent with its multi-client surveys. | ||
Revenues from all imaging and other services are recognized when (a) persuasive evidence of an arrangement exists, (b) the price is fixed or determinable, and (c) collectibility is reasonably assured. Revenues from contract services performed on a dayrate basis are recognized as the service is performed. | ||
Acquisition Systems and Other Seismic Equipment — For the sales of acquisition systems and other seismic equipment, the Company follows the requirements of ASC 605-10 “Revenue Recognition” and recognizes revenue when (a) evidence of an arrangement exists; (b) the price to the customer is fixed and determinable; (c) collectibility is reasonably assured; and (d) the acquisition system or other seismic equipment is delivered to the customer and risk of ownership has passed to the customer, or, in the case in which a substantive customer-specified acceptance clause exists in the contract, the later of delivery or when the customer-specified acceptance is obtained. | ||
Software — For the sales of navigation, survey and quality control software systems, the Company follows the requirements of ASC 985-605 “Software Revenue Recognition” (“ASC 985-605”). The Company recognizes revenue from sales of these software systems when (a) evidence of an arrangement exists; (b) the price to the customer is fixed and determinable; (c) collectibility is reasonably assured; and (d) the software is delivered to the customer and risk of ownership has passed to the customer, or, in the limited case in which a substantive customer-specified acceptance clause exists, the later of delivery or when the customer-specified acceptance is obtained. These arrangements generally include the Company providing related services, such as training courses, engineering services and annual software maintenance. The Company allocates revenue to each element of the arrangement based upon vendor-specific objective evidence (“VSOE”) of fair value of the element or, if VSOE is not available for the delivered element, the Company applies the residual method. | ||
In addition to perpetual software licenses, the Company offers time-based software licenses. For time-based licenses, the Company recognizes revenue ratably over the contract term, which is generally two to five years. | ||
Ocean Bottom Services — The Company recognizes revenues as they are realized and earned and can be reasonably measured, based on contractual dayrates or on a fixed-price basis, and when collectability is reasonably assured. In connection with acquisition contracts, the Company may receive revenues for preparation and mobilization of equipment and personnel or for capital improvements to vessels. The Company defers the revenues earned and incremental costs incurred that are directly related to contract preparation and mobilization and recognizes such revenues and costs over the primary contract term of the acquisition project. The Company uses the ratio of square kilometers acquired as a percentage of the total square kilometers expected to be acquired over the primary term of the contract to recognize deferred revenues and amortize, in cost of services, the costs related to contract preparation and mobilization. The Company recognizes the costs of relocating vessels without contracts to more promising market sectors as such costs are incurred. Upon completion of acquisition contracts, the Company recognizes in earnings any demobilization fees received and expenses incurred. | ||
Multiple-element Arrangements — When separate elements (such as an acquisition system, other seismic equipment and/or imaging and acquisition services) are contained in a single sales arrangement, or in related arrangements with the same customer, the Company follows the requirements of ASC 605-25 “Accounting for Multiple-Element Revenue Arrangement” (“ASC 605-25”). The Company adopted this guidance as of January 1, 2010. Accordingly, the Company applied this guidance to transactions initiated or materially modified on or after January 1, 2010. The guidance does not apply to software sales accounted for under ASC 985-605. The Company also adopted, in the same period, guidance within ASC 985-605 that excludes from its scope revenue arrangements that include both tangible products and software elements, such that the tangible products contain both software and non-software components that function together to deliver the tangible product’s essential functionality. | ||
This guidance requires that arrangement consideration be allocated at the inception of an arrangement to all deliverables using the relative selling price method. The Company allocates arrangement consideration to each deliverable qualifying as a separate unit of accounting in an arrangement based on its relative selling price. The Company determines its selling price using VSOE, if it exists, or otherwise third-party evidence (“TPE”). If neither VSOE nor TPE of selling price exists for a unit of accounting, the Company uses estimated selling price (“ESP”). The Company generally expects that it will not be able to establish TPE due to the nature of the markets in which the Company competes, and, as such, the Company typically will determine its selling price using VSOE or, if not available, ESP. VSOE is generally limited to the price charged when the same or similar product is sold on a standalone basis. If a product is seldom sold on a standalone basis, it is unlikely that the Company can determine VSOE for the product. | ||
The objective of ESP is to determine the price at which the Company would transact if the product were sold by the Company on a standalone basis. The Company’s determination of ESP involves a weighting of several factors based on the specific facts and circumstances of the arrangement. Specifically, the Company considers the anticipated margin on the particular deliverable, the selling price and profit margin for similar products and the Company’s ongoing pricing strategy and policies. | ||
Research, Development and Engineering | Research, Development and Engineering | |
Research, development and engineering costs primarily relate to activities that are designed to improve the quality of the subsurface image and overall acquisition economics of the Company’s customers. The costs associated with these activities are expensed as incurred. These costs include prototype material and field testing expenses, along with the related salaries and stock-based compensation, facility costs, consulting fees, tools and equipment usage and other miscellaneous expenses associated with these activities. | ||
Stock-Based Compensation | Stock-Based Compensation | |
The Company accounts for stock-based compensation under the provisions of ASC 718, “Compensation – Stock Compensation” (“ASC 718”). The Company estimates the value of stock option awards on the date of grant using the Black-Scholes option pricing model. The determination of the fair value of stock-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of subjective variables. These variables include, but are not limited to, expected stock price volatility over the term of the awards, actual and projected employee stock option exercise behaviors, risk-free interest rate and expected dividends. The Company recognizes stock-based compensation on the straight-line basis over the service period of each award (generally the award’s vesting period). | ||
Income Taxes | Income Taxes | |
Income taxes are accounted for under the liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, including operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The Company records a valuation allowance when it is more likely than not that all or a portion of deferred tax assets will not be realized (see Footnote 8 “Income Taxes”). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | ||
Comprehensive Net Income (Loss) | Comprehensive Net Income (Loss) | |
Comprehensive net income (loss) as shown in the Consolidated Statements of Comprehensive Income (Loss) and the balance in Accumulated Other Comprehensive Loss as shown in the Consolidated Balance Sheets as of December 31, 2014 and 2013, consist of foreign currency translation adjustments, equity interest in INOVA Geophysical’s accumulated other comprehensive income (loss) and unrealized gains or losses on available-for-sale securities. | ||
Foreign Currency Gains and Losses | Foreign Currency Gains and Losses | |
Assets and liabilities of the Company’s subsidiaries operating outside the United States that have a functional currency other than the U.S. dollar have been translated to U.S. dollars using the exchange rate in effect at the balance sheet date. Results of foreign operations have been translated using the average exchange rate during the periods of operation. Resulting translation adjustments have been recorded as a component of Accumulated Other Comprehensive Loss. Foreign currency transaction gains and losses are included in the Consolidated Statements of Operations in Other income (expense) as they occur. | ||
Concentration of Foreign Sales Risk | Concentration of Foreign Sales Risk | |
The majority of the Company’s foreign sales are denominated in U.S. dollars. For 2014, 2013 and 2012, international sales comprised 74%, 73% and 69%, respectively, of total net revenues. Since 2008, global economic problems and uncertainties have generally increased in scope and nature. In the fourth quarter of 2014, crude oil prices dropped by approximately 45%–50% as the non-U.S. economic outlook continues to weaken, North American production continues to expand, and more recently, Saudi Arabia has publicly stated its intention to support its global market share at the expense of lower prices. The decline in crude oil prices, as well as U.S. and European Union sanctions against Russia related to its actions in Ukraine, have both contributed to the devaluation of the Russian ruble putting significant pressure on the Company’s Russian-based customers and negatively impacting the appeal of seismic data located in Russia to potential non-Russian buyers. The Company’s results of operations, liquidity and financial condition related to its operations in Russia are primarily denominated in U.S. dollars. To the extent that world events or economic conditions negatively affect the Company’s future sales to customers in many regions of the world, as well as the collectability of the Company’s existing receivables, the Company’s future results of operations, liquidity and financial condition would be adversely affected. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Accounting Policies [Abstract] | ||||||||
Summary of Property, Plant, Equipment and Seismic Rental Equipment | Property, plant, equipment and seismic rental equipment are stated at cost. Depreciation expense is provided straight-line over the following estimated useful lives: | |||||||
Years | ||||||||
Machinery and equipment | 7-Mar | |||||||
Buildings | 25-May | |||||||
Seismic rental equipment | 5-Mar | |||||||
Leased equipment and other | 10-Mar | |||||||
A summary of property, plant, equipment and seismic rental equipment follows (in thousands): | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Buildings | $ | 25,343 | $ | 23,292 | ||||
Machinery and equipment | 144,864 | 97,242 | ||||||
Seismic rental equipment | 2,166 | 8,649 | ||||||
Furniture and fixtures | 4,064 | 4,673 | ||||||
Other | 16,481 | 3,577 | ||||||
Total | 192,918 | 137,433 | ||||||
Less accumulated depreciation | (123,078 | ) | (90,749 | ) | ||||
Property, plant, equipment and seismic rental equipment, net | $ | 69,840 | $ | 46,684 | ||||
Schedule of Multi-Client Data Library | At December 31, 2014 and 2013, multi-client data library costs and accumulated amortization consisted of the following (in thousands): | |||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Gross costs of multi-client data creation | $ | 849,522 | $ | 791,522 | ||||
Less accumulated amortization | (611,651 | ) | (547,277 | ) | ||||
Less impairments to multi-client data library | (119,202 | ) | (5,461 | ) | ||||
Total | $ | 118,669 | $ | 238,784 | ||||
Impairments_Restructurings_and1
Impairments, Restructurings, and Other Charges (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||
Restructuring and Related Costs | During 2013, the Company recognized the following pre-tax charges related to its Systems segment restructuring activity (in thousands): | |||||||||||||||||||||||
Facility charges | Severance charges | Asset write-downs and other | Total | |||||||||||||||||||||
Cost of goods sold | $ | 647 | $ | 3,729 | $ | 21,351 | $ | 25,727 | ||||||||||||||||
Operating expenses | $ | — | $ | 1,873 | $ | 383 | $ | 2,256 | ||||||||||||||||
Consolidated total | $ | 647 | $ | 5,602 | $ | 21,734 | $ | 27,983 | ||||||||||||||||
During 2014, the Company recognized the following pre-tax charges (in thousands): | ||||||||||||||||||||||||
Multi-client data library, net | Equity method investments(a) | Goodwill and Intangible Assets(b) | Asset write-downs and other | Severance charges | Total | |||||||||||||||||||
Cost of goods sold | $ | 100,100 | $ | — | $ | — | $ | 8,051 | $ | 391 | $ | 108,542 | ||||||||||||
Operating expenses | — | — | 23,284 | 8,214 | (c) | 1,902 | 33,400 | |||||||||||||||||
Equity in earnings (losses) of investments | — | 34,199 | — | — | — | 34,199 | ||||||||||||||||||
Consolidated total | $ | 100,100 | $ | 34,199 | $ | 23,284 | $ | 16,265 | $ | 2,293 | $ | 176,141 | ||||||||||||
(a) | Represents the full write-down of the Company’s equity method investment in INOVA Geophysical of $30.7 million, in addition to the Company’s share of charges related to excess and obsolete inventory and customer bad debts of $3.5 million. For a discussion of the Company’s impairment of its equity method investment, see Footnote 5 “Equity Method Investments.” | |||||||||||||||||||||||
(b) | Includes an impairment of the goodwill on the Company’s Marine Systems reporting unit and an impairment of certain intangible assets. For a discussion of the impairment of the goodwill, see Footnote 11 “Goodwill.” For a discussion of the impairment of the intangible asset, see Footnote 10 “Details of Selected Balance Sheet Accounts.” | |||||||||||||||||||||||
(c) | Includes outstanding receivables from INOVA Geophysical of $5.5 million. |
Acquisition_of_OceanGeo_Tables
Acquisition of OceanGeo (Tables) | 12 Months Ended | ||||||||
Dec. 31, 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 (Unaudited) | Years Ended December 31, | ||||||||
2014 | 2013 | ||||||||
Net revenues | $ | 518,742 | $ | 580,834 | |||||
Loss from operations | $ | (114,346 | ) | $ | (19,300 | ) | |||
Net loss | $ | (126,492 | ) | $ | (262,974 | ) | |||
Net loss applicable to common shares | $ | (127,226 | ) | $ | (268,330 | ) | |||
Basic and diluted net loss per common share | $ | (0.78 | ) | $ | (1.69 | ) |
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Segment Reporting [Abstract] | ||||||||||||
Schedule of Segment Information | A summary of segment information follows (in thousands): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net revenues: | ||||||||||||
Solutions: | ||||||||||||
New Venture | $ | 98,649 | $ | 154,578 | $ | 147,346 | ||||||
Data Library | 66,180 | 111,998 | 88,085 | |||||||||
Total multi-client revenues | 164,829 | 266,576 | 235,431 | |||||||||
Data Processing | 113,075 | 120,808 | 115,834 | |||||||||
Total | $ | 277,904 | $ | 387,384 | $ | 351,265 | ||||||
Systems: | ||||||||||||
Towed Streamer | $ | 43,995 | $ | 66,991 | $ | 77,769 | ||||||
Ocean Bottom Equipment | — | 7,307 | 14,823 | |||||||||
Other | 44,422 | 48,134 | 39,404 | |||||||||
Total | $ | 88,417 | $ | 122,432 | $ | 131,996 | ||||||
Software: | ||||||||||||
Software Systems | $ | 36,203 | $ | 35,418 | $ | 39,738 | ||||||
Services | 3,790 | 3,933 | 3,318 | |||||||||
Total | $ | 39,993 | $ | 39,351 | $ | 43,056 | ||||||
Ocean Bottom Services | $ | 103,244 | $ | — | $ | — | ||||||
Total | $ | 509,558 | $ | 549,167 | $ | 526,317 | ||||||
Gross profit: | ||||||||||||
Solutions | $ | (24,345 | ) | (a) | $ | 111,108 | $ | 132,950 | ||||
Systems | 29,829 | (b) | 19,999 | 50,790 | ||||||||
Software | 28,835 | 28,206 | 32,061 | |||||||||
Ocean Bottom Services | 27,904 | — | — | |||||||||
Total | $ | 62,223 | $ | 159,313 | $ | 215,801 | ||||||
Gross margin: | ||||||||||||
Solutions | (9 | )% | 29 | % | 38 | % | ||||||
Systems | 34 | % | 16 | % | 38 | % | ||||||
Software | 72 | % | 72 | % | 74 | % | ||||||
Ocean Bottom Services | 27 | % | — | % | — | % | ||||||
Total | 12 | % | 29 | % | 41 | % | ||||||
Income (loss) from operations: | ||||||||||||
Solutions | $ | (80,653 | ) | (a) | $ | 61,146 | $ | 88,589 | ||||
Systems | (23,521 | ) | (b) | (9,957 | ) | 10,132 | ||||||
Software | 20,212 | 23,602 | 28,129 | |||||||||
Ocean Bottom Services | 19,070 | — | — | |||||||||
Corporate and other | (53,037 | ) | (58,395 | ) | (52,323 | ) | ||||||
Income (loss) from operations | (117,929 | ) | 16,396 | 74,527 | ||||||||
Interest expense, net | (19,382 | ) | (12,344 | ) | (5,265 | ) | ||||||
Equity in earnings (losses) of investments | (49,485 | ) | (42,320 | ) | 297 | |||||||
Other income (expense) | 79,860 | (182,530 | ) | 17,124 | ||||||||
Income (loss) before income taxes | $ | (106,936 | ) | $ | (220,798 | ) | $ | 86,683 | ||||
(a) | Includes a charge of $100.1 million to write down the multi-client data library, impacting gross profit (loss), in addition to charges for the impairment of intangible assets and severance-related charges within the Solutions segment. | |||||||||||
(b) | Includes a charge of $21.9 million to write down goodwill, impacting income (loss) from operations, in addition to charges for write-downs of inventory and receivables and severance-related charges within the Systems segment. | |||||||||||
Schedule of Depreciation and Amortization by Segments | ||||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Depreciation and amortization (including multi-client data library): | ||||||||||||
Solutions | $ | 80,138 | $ | 99,774 | $ | 98,342 | ||||||
Systems | 1,860 | 2,665 | 4,185 | |||||||||
Software | 989 | 699 | 776 | |||||||||
Ocean Bottom Services | 6,517 | — | — | |||||||||
Corporate and other | 2,526 | 1,736 | 1,979 | |||||||||
Total | $ | 92,030 | $ | 104,874 | $ | 105,282 | ||||||
Segment Reporting of Assets by Segments and Geographical Areas | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Total assets: | ||||||||||||
Solutions | $ | 265,505 | $ | 445,581 | ||||||||
Systems | 84,465 | 139,074 | ||||||||||
Software | 38,479 | 45,343 | ||||||||||
Ocean Bottom Services | 56,637 | — | ||||||||||
Corporate and other | 172,171 | 234,673 | ||||||||||
Total | $ | 617,257 | $ | 864,671 | ||||||||
A summary of total assets by geographic area follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Total assets by geographic area: | ||||||||||||
North America | $ | 347,419 | $ | 609,739 | ||||||||
Europe | 117,622 | 76,601 | ||||||||||
Middle East | 96,532 | 128,909 | ||||||||||
Latin America | 36,529 | 33,375 | ||||||||||
Other | 19,155 | 16,047 | ||||||||||
Total | $ | 617,257 | $ | 864,671 | ||||||||
Summary of net revenues by geographic area | A summary of net revenues by geographic area follows (in thousands): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net revenues by geographic area: | ||||||||||||
North America | $ | 130,224 | $ | 150,160 | $ | 164,157 | ||||||
Latin America | 111,078 | 54,008 | 46,212 | |||||||||
Europe | 100,188 | 198,977 | 200,589 | |||||||||
Africa | 75,507 | 16,474 | 18,469 | |||||||||
Asia Pacific | 49,881 | 52,672 | 55,028 | |||||||||
Middle East | 39,142 | 63,157 | 37,471 | |||||||||
Commonwealth of Independent States | 3,538 | 13,719 | 4,391 | |||||||||
Total | $ | 509,558 | $ | 549,167 | $ | 526,317 | ||||||
Equity_Method_Investments_Tabl
Equity Method Investments (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | ||||||||||||
Summary of changes in equity method investments | The following table reflects the change in the Company’s equity method investments from equity method investees during the year ended December 31, 2014 (in thousands): | |||||||||||
INOVA Geophysical | OceanGeo | Total | ||||||||||
Investment at December 31, 2013 | $ | 51,065 | $ | 2,800 | $ | 53,865 | ||||||
Equity in losses of investments | (19,525 | ) | 738 | (18,787 | ) | |||||||
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 income (loss) | (1,987 | ) | — | (1,987 | ) | |||||||
Write-down of equity-method investment in INOVA(1) | (29,553 | ) | — | (29,553 | ) | |||||||
Investments at December 31, 2014 | $ | — | $ | — | $ | — | ||||||
(1) | This write-down does not include an additional $1.1 million impairment of the Company’s share of INOVA’s balance of Accumulated other comprehensive loss. The total impairment recorded by the Company equals $30.7 million, as discussed below. | |||||||||||
Summary of unaudited financial information for INOVA Geophysical | The following table reflects summarized financial information for INOVA Geophysical, on a 100% basis, as of September 30, 2014 and 2013 and for Fiscal 2014, Fiscal 2013 and Fiscal 2012 (in thousands): | |||||||||||
(Unaudited) | September 30, | |||||||||||
2014 | 2013 | |||||||||||
Current assets | $ | 105,085 | $ | 147,475 | ||||||||
Non-current assets | 63,212 | 71,551 | ||||||||||
Current liabilities | 99,732 | 110,972 | ||||||||||
Non-current liabilities | 6,498 | 2,731 | ||||||||||
Equity | $ | 62,067 | $ | 105,323 | ||||||||
Fiscal 2014 (unaudited) | Fiscal 2013 (unaudited) | Fiscal 2012 | ||||||||||
Total net revenues | $ | 89,975 | $ | 183,619 | $ | 188,336 | ||||||
Gross profit (loss) | $ | 247 | (a) | $ | (1,988 | ) | (b) | $ | 39,320 | |||
Income (loss) from operations | $ | (34,540 | ) | (a) | $ | (44,463 | ) | $ | 3,241 | |||
Net income (loss) | $ | (40,087 | ) | $ | (46,149 | ) | (b) | $ | 2,197 | |||
(a) | Impacting INOVA Geophysical’s Fiscal 2014 gross profit (loss) is $3.8 million of a write-down of excess and obsolete inventory. In addition to the special item impacting gross profit (loss), income (loss) from operations was also impacted by $3.4 million of charges related to customer bad debts. | |||||||||||
(b) | Includes approximately $36.5 million of restructuring and special items associated with the impairment of intangible assets, write-down of excess and obsolete inventory and rental equipment, and severance-related charges. In addition to the restructuring and special items impacting gross profit, Net income (loss) was also impacted by $1.8 million of other restructuring and special items. |
Longterm_Debt_and_Lease_Obliga1
Long-term Debt and Lease Obligations (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Obligations | |||||||||
December 31, | |||||||||
Obligations (in thousands) | 2014 | 2013 | |||||||
Senior secured second-priority notes | $ | 175,000 | $ | 175,000 | |||||
Revolving line of credit | — | 35,000 | |||||||
Equipment capital leases | 15,059 | 8,651 | |||||||
Other debt obligations | 535 | 1,501 | |||||||
Total | 190,594 | 220,152 | |||||||
Current portion of long-term debt and lease obligations | (7,649 | ) | (5,906 | ) | |||||
Non-current portion of long-term debt and lease obligations | $ | 182,945 | $ | 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% | ||||||||
Equipment Capital Leases | A summary of future principal obligations under long-term debt and equipment capital lease obligations follows (in thousands): | ||||||||
Years Ended December 31, | Long-Term Debt | Capital Lease Obligations | |||||||
2015 | $ | 535 | $ | 7,114 | |||||
2016 | — | 5,383 | |||||||
2017 | — | 2,562 | |||||||
2018 | 175,000 | — | |||||||
2019 | — | — | |||||||
Thereafter | — | — | |||||||
Total | $ | 175,535 | $ | 15,059 | |||||
Net_Income_Loss_per_Common_Sha1
Net Income (Loss) per Common Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Computation of Basic and Diluted Net Income (Loss) per Common Share | The following table summarizes the computation of basic and diluted net income (loss) per common share (in thousands, except per share amounts): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net income (loss) applicable to common shares | $ | (128,252 | ) | $ | (251,874 | ) | $ | 61,963 | ||||
Income impact of assumed Series D Preferred Stock conversion | — | — | 1,352 | |||||||||
Net income (loss) after assumed Series D Preferred Stock conversion | $ | (128,252 | ) | $ | (251,874 | ) | $ | 63,315 | ||||
Weighted average number of common shares outstanding | 164,089 | 158,506 | 155,801 | |||||||||
Effect of dilutive stock awards | — | — | 899 | |||||||||
Effect of Series D Preferred Stock | — | — | 6,065 | |||||||||
Weighted average number of diluted common shares outstanding | 164,089 | 158,506 | 162,765 | |||||||||
Basic net income (loss) per share | $ | (0.78 | ) | $ | (1.59 | ) | $ | 0.4 | ||||
Diluted net income (loss) per share | $ | (0.78 | ) | $ | (1.59 | ) | $ | 0.39 | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Sources of income (loss) before income taxes | The sources of income (loss) before income taxes are as follows (in thousands): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Domestic | $ | (162,151 | ) | $ | (221,185 | ) | $ | 34,633 | ||||
Foreign | 55,215 | 387 | 52,050 | |||||||||
Total | $ | (106,936 | ) | $ | (220,798 | ) | $ | 86,683 | ||||
Components of income taxes | Components of income taxes are as follows (in thousands): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | (678 | ) | $ | 4,113 | $ | 873 | |||||
State and local | (42 | ) | 485 | 192 | ||||||||
Foreign | 21,722 | 16,278 | 19,106 | |||||||||
Deferred: | ||||||||||||
Federal | 1,004 | 4,012 | 3,822 | |||||||||
Foreign | (1,424 | ) | 832 | (136 | ) | |||||||
Total income tax expense | $ | 20,582 | $ | 25,720 | $ | 23,857 | ||||||
Reconciliation of the expected income tax expense on income (loss) before income taxes using the statutory federal income tax | A reconciliation of the expected income tax expense on income (loss) before income taxes using the statutory federal income tax rate of 35% for 2014, 2013 and 2012 to income tax expense follows (in thousands): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Expected income tax expense (benefit) at 35% | $ | (37,428 | ) | $ | (77,279 | ) | $ | 30,339 | ||||
Foreign tax rate differential | (10,481 | ) | (2,348 | ) | (5,404 | ) | ||||||
Foreign tax differences | 6,444 | 16,808 | 4,897 | |||||||||
State and local taxes | (42 | ) | 485 | 192 | ||||||||
Nondeductible expenses and other | (1,584 | ) | (58 | ) | 47 | |||||||
Goodwill impairment | 9,444 | — | — | |||||||||
Valuation allowance: | ||||||||||||
Valuation allowance on equity in losses of INOVA Geophysical | 17,644 | 7,871 | (104 | ) | ||||||||
Valuation allowance on operations | 36,585 | 80,241 | (6,110 | ) | ||||||||
Total income tax expense | $ | 20,582 | $ | 25,720 | $ | 23,857 | ||||||
Tax effects of the cumulative temporary differences resulting in the net deferred income tax asset (liability) | The tax effects of the cumulative temporary differences resulting in the net deferred income tax asset (liability) are as follows (in thousands): | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Current deferred: | ||||||||||||
Deferred income tax assets: | ||||||||||||
Accrued expenses | $ | 6,495 | $ | 5,898 | ||||||||
Allowance accounts | 7,076 | 6,282 | ||||||||||
Total current deferred income tax asset | 13,571 | 12,180 | ||||||||||
Valuation allowance | (12,612 | ) | (10,535 | ) | ||||||||
Net current deferred income tax asset | 959 | 1,645 | ||||||||||
Deferred income tax liabilities: | ||||||||||||
Unbilled receivables | (6,865 | ) | (13,516 | ) | ||||||||
Total net current deferred income tax liability | $ | (5,906 | ) | $ | (11,871 | ) | ||||||
Non-current deferred: | ||||||||||||
Deferred income tax assets: | ||||||||||||
Net operating loss carryforward | $ | 61,227 | $ | 9,043 | ||||||||
Capital loss carryforward | 18,385 | 19,657 | ||||||||||
Equity method investment | 58,820 | 41,176 | ||||||||||
Basis in identified intangibles | 9,263 | 9,950 | ||||||||||
Basis in research and development | 3,819 | 3,733 | ||||||||||
Contingency accrual | 43,319 | 67,664 | ||||||||||
Tax credit carryforwards and other | 11,515 | 8,893 | ||||||||||
Total non-current deferred income tax asset | 206,348 | 160,116 | ||||||||||
Valuation allowance | (192,652 | ) | (140,500 | ) | ||||||||
Net non-current deferred income tax asset | 13,696 | 19,616 | ||||||||||
Deferred income tax liabilities: | ||||||||||||
Basis in property, plant and equipment | (5,082 | ) | (5,457 | ) | ||||||||
Total net non-current deferred income tax asset | $ | 8,614 | $ | 14,159 | ||||||||
Aggregate changes in gross amount of unrecognized tax benefits | During 2014, 2013 and 2012, the aggregate changes in the Company’s total gross amount of unrecognized tax benefits are summarized as follows (in thousands): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Beginning balance | $ | 2,219 | $ | 1,834 | $ | 1,375 | ||||||
Increases in unrecognized tax benefits – prior year positions | — | — | — | |||||||||
Increases in unrecognized tax benefits – current year positions | 263 | 385 | 459 | |||||||||
Decreases in unrecognized tax benefits – prior year position | (525 | ) | — | — | ||||||||
Ending balance | $ | 1,957 | $ | 2,219 | $ | 1,834 | ||||||
Other_Income_Expense_Tables
Other Income (Expense) (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Other Income and Expenses [Abstract] | ||||||||||||
Schedule of Other Income (Expense) | A summary of other income (expense) follows (in thousands): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Reduction of (accrual for) loss contingency related to legal proceedings (Footnote 17) | $ | 69,557 | $ | (183,327 | ) | $ | (10,000 | ) | ||||
Gain on sale of a product line(1) | 6,522 | — | — | |||||||||
Gain on sale of cost method investments(2) | 5,463 | 3,591 | — | |||||||||
Gain on legal settlement(3) | — | — | 30,895 | |||||||||
Other income (expense) | (1,682 | ) | (2,794 | ) | (3,771 | ) | ||||||
Total other income (expense) | $ | 79,860 | $ | (182,530 | ) | $ | 17,124 | |||||
(1) | In 2014, the Company sold its Source product line for $14.4 million, net of transaction fees, recording a gain of approximately $6.5 million before taxes. The historical results of this product line have not been material to the Company’s results of operations. | |||||||||||
(2) | Includes the 2014 sale of the Company’s cost method investment in a privately-owned U.S.-based technology company for total proceeds of approximately $16.5 million, of which $14.1 million was due and paid at closing. | |||||||||||
(3) | Gain relates to the 2012 settlement of a patent infringement lawsuit with Sercel. |
Details_of_Selected_Balance_Sh1
Details of Selected Balance Sheet Accounts (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||
Summary of accounts receivable | ||||||||||||
A summary of accounts receivable follows (in thousands): | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Accounts receivable, principally trade | $ | 121,957 | $ | 156,670 | ||||||||
Less allowance for doubtful accounts | (7,632 | ) | (7,222 | ) | ||||||||
Accounts receivable, net | $ | 114,325 | $ | 149,448 | ||||||||
Summary of inventories | ||||||||||||
A summary of inventories follows (in thousands): | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Raw materials and purchased subassemblies | $ | 41,461 | $ | 54,168 | ||||||||
Work-in-process | 18,221 | 2,297 | ||||||||||
Finished goods | 21,284 | 33,263 | ||||||||||
Reserve for excess and obsolete inventories | (29,804 | ) | (32,555 | ) | ||||||||
Total | $ | 51,162 | $ | 57,173 | ||||||||
Summary of Property, Plant, Equipment and Seismic Rental Equipment | Property, plant, equipment and seismic rental equipment are stated at cost. Depreciation expense is provided straight-line over the following estimated useful lives: | |||||||||||
Years | ||||||||||||
Machinery and equipment | 7-Mar | |||||||||||
Buildings | 25-May | |||||||||||
Seismic rental equipment | 5-Mar | |||||||||||
Leased equipment and other | 10-Mar | |||||||||||
A summary of property, plant, equipment and seismic rental equipment follows (in thousands): | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Buildings | $ | 25,343 | $ | 23,292 | ||||||||
Machinery and equipment | 144,864 | 97,242 | ||||||||||
Seismic rental equipment | 2,166 | 8,649 | ||||||||||
Furniture and fixtures | 4,064 | 4,673 | ||||||||||
Other | 16,481 | 3,577 | ||||||||||
Total | 192,918 | 137,433 | ||||||||||
Less accumulated depreciation | (123,078 | ) | (90,749 | ) | ||||||||
Property, plant, equipment and seismic rental equipment, net | $ | 69,840 | $ | 46,684 | ||||||||
Summary of finite intangible assets, net | ||||||||||||
A summary of intangible assets, net, follows (in thousands): | 31-Dec-14 | |||||||||||
Gross | Accumulated | Net | ||||||||||
Amount | Amortization | |||||||||||
Customer relationships | $ | 40,234 | $ | (33,446 | ) | $ | 6,788 | |||||
Intellectual property rights | 3,350 | (3,350 | ) | — | ||||||||
Total | $ | 43,584 | $ | (36,796 | ) | $ | 6,788 | |||||
31-Dec-13 | ||||||||||||
Gross | Accumulated | Net | ||||||||||
Amount | Amortization | |||||||||||
Customer relationships | $ | 42,593 | $ | (31,880 | ) | $ | 10,713 | |||||
Intellectual property rights | 4,300 | (3,766 | ) | 534 | ||||||||
Total | $ | 46,893 | $ | (35,646 | ) | $ | 11,247 | |||||
Estimated future amortization expense | A summary of the estimated amortization expense for the next five years follows (in thousands): | |||||||||||
Years Ended December 31, | ||||||||||||
2015 | $ | 1,939 | ||||||||||
2016 | $ | 1,675 | ||||||||||
2017 | $ | 1,452 | ||||||||||
2018 | $ | 1,225 | ||||||||||
2019 | $ | 497 | ||||||||||
Summary of accrued expenses | ||||||||||||
A summary of other long-term liabilities follows (in thousands): | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Accrual for loss contingency related to legal proceedings (Footnote 17) | $ | 123,770 | $ | 193,327 | ||||||||
Facility restructuring accrual | 4,667 | 4,837 | ||||||||||
Other | 15,367 | 12,438 | ||||||||||
Total | $ | 143,804 | $ | 210,602 | ||||||||
A summary of accrued expenses follows (in thousands): | December 31, | |||||||||||
2014 | 2013 | |||||||||||
Accrued multi-client data library acquisition costs | $ | 6,458 | $ | 25,140 | ||||||||
Compensation, including compensation-related taxes and commissions | 33,386 | 29,727 | ||||||||||
Deferred income tax liability | 5,900 | 11,967 | ||||||||||
Income tax payable | 8,865 | 5,845 | ||||||||||
Other | 10,655 | 11,679 | ||||||||||
Total | $ | 65,264 | $ | 84,358 | ||||||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Changes in the carrying amount of goodwill | The following is a summary of the changes in the carrying amount of goodwill for the years ended December 31, 2014 and 2013 (in thousands): | |||||||||||||||
Solutions | Software | Marine Systems | Total | |||||||||||||
Balance at January 1, 2013 | $ | 2,943 | $ | 25,422 | $ | 26,984 | $ | 55,349 | ||||||||
Impact of foreign currency translation adjustments | — | 527 | — | 527 | ||||||||||||
Balance at December 31, 2013 | 2,943 | 25,949 | 26,984 | 55,876 | ||||||||||||
Reduction due to sale of Source product line(1) | — | — | (5,100 | ) | (5,100 | ) | ||||||||||
Impairment of goodwill | — | — | (21,884 | ) | (21,884 | ) | ||||||||||
Impact of foreign currency translation adjustments | — | (1,504 | ) | — | (1,504 | ) | ||||||||||
Balance at December 31, 2014 | $ | 2,943 | $ | 24,445 | $ | — | $ | 27,388 | ||||||||
(1) | In connection with the Company’s sale of its Source product line in the second quarter of 2014, the Company reduced goodwill associated with the Marine Systems reporting unit. |
Stockholders_Equity_and_StockB1
Stockholders' Equity and Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Transactions Under the Stock Option Plans | Transactions under the stock option plans are summarized as follows: | ||||||||||||||||
Option Price | Outstanding | Vested | Available | ||||||||||||||
per Share | for Grant | ||||||||||||||||
January 1, 2012 | $2.49-$16.39 | 6,791,300 | 3,844,538 | 4,793,640 | |||||||||||||
Granted | 5.96-7.16 | 1,544,000 | — | (1,544,000 | ) | ||||||||||||
Vested | — | — | 1,060,275 | — | |||||||||||||
Exercised | 2.49-7.76 | (194,410 | ) | (194,410 | ) | — | |||||||||||
Cancelled/forfeited | 2.49-15.43 | (212,540 | ) | (119,165 | ) | 127,125 | |||||||||||
Restricted stock granted out of option plans | — | — | — | (667,000 | ) | ||||||||||||
Restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans | — | — | — | 229,163 | |||||||||||||
1-Jan-13 | 2.80-16.39 | 7,928,350 | 4,591,238 | 2,938,928 | |||||||||||||
Increase in shares authorized | — | — | — | 3,730,000 | |||||||||||||
Plan Expiration | — | — | — | (79,250 | ) | ||||||||||||
Granted | 3.86-6.64 | 1,788,300 | — | (1,788,300 | ) | ||||||||||||
Vested | — | — | 1,055,412 | — | |||||||||||||
Exercised | 2.80-5.81 | (707,575 | ) | (707,575 | ) | — | |||||||||||
Cancelled/forfeited | 3.00-15.43 | (750,575 | ) | (353,600 | ) | 702,325 | |||||||||||
Restricted stock granted out of option plans | — | — | — | (714,950 | ) | ||||||||||||
Restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans | — | — | — | 232,700 | |||||||||||||
December 31, 2013 | 2.83-16.39 | 8,258,500 | 4,585,475 | 5,021,453 | |||||||||||||
Plan Expiration | — | — | — | (66,783 | ) | ||||||||||||
Granted | 2.47–4.17 | 1,736,400 | — | (1,736,400 | ) | ||||||||||||
Vested | — | — | 1,391,251 | — | |||||||||||||
Exercised | 3 | (28,500 | ) | (28,500 | ) | — | |||||||||||
Cancelled/forfeited | 3.00–15.43 | (980,375 | ) | (572,375 | ) | 216,800 | |||||||||||
Restricted stock granted out of option plans | — | — | — | (727,550 | ) | ||||||||||||
Restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans | — | — | — | 44,530 | |||||||||||||
December 31, 2014 | $2.47–$16.39 | 8,986,025 | 5,375,851 | 2,752,050 | |||||||||||||
Summary of Stock Options Outstanding | Stock options outstanding at December 31, 2014 are summarized as follows: | ||||||||||||||||
Option Price per Share | Outstanding | Weighted Average Exercise Price of Outstanding Options | Weighted Average Remaining Contract Life | Vested | Weighted Average Exercise Price of Vested Options | ||||||||||||
$2.47 - $4.58 | 3,682,125 | $ | 3.8 | 7.5 years | 1,063,826 | $ | 3.54 | ||||||||||
$4.79 - $7.19 | 3,683,700 | $ | 6.23 | 6.7 years | 2,698,075 | $ | 6.28 | ||||||||||
$7.31 - $13.29 | 838,250 | $ | 9.26 | 3.5 years | 832,000 | $ | 9.25 | ||||||||||
$14.03 - $16.39 | 781,950 | $ | 15.25 | 3.2 years | 781,950 | $ | 15.25 | ||||||||||
Totals | 8,986,025 | $ | 6.3 | 6.7 years | 5,375,851 | $ | 7.5 | ||||||||||
Additional Information Related to the Company's Stock Options | Additional information related to the Company’s stock options follows: | ||||||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Grant Date Fair Value | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value (000’s) | |||||||||||||
Total outstanding at January 1, 2014 | 8,258,500 | $ | 6.83 | 6.8 years | |||||||||||||
Options granted | 1,736,400 | $ | 3.96 | $ | 2.41 | ||||||||||||
Options exercised | (28,500 | ) | $ | 3 | |||||||||||||
Options cancelled | (470,500 | ) | $ | 4.94 | |||||||||||||
Options forfeited | (509,875 | ) | $ | 8.27 | |||||||||||||
Total outstanding at December 31, 2014 | 8,986,025 | $ | 6.3 | 6.7 years | $ | 35 | |||||||||||
Options exercisable and vested at December 31, 2014 | 5,375,851 | $ | 7.5 | 5.2 years | $ | — | |||||||||||
Status of the Company's Restricted Stock and Restricted Stock Unit Awards | The status of the Company’s restricted stock and restricted stock unit awards for 2014 follows: | ||||||||||||||||
Number of | |||||||||||||||||
Shares/Units | |||||||||||||||||
Total nonvested at January 1, 2014 | 1,052,408 | ||||||||||||||||
Granted | 727,550 | ||||||||||||||||
Vested | (662,451 | ) | |||||||||||||||
Forfeited | (120,814 | ) | |||||||||||||||
Total nonvested at December 31, 2014 | 996,693 | ||||||||||||||||
Schedule of Valuation Assumptions | The Company calculated the fair value of each stock option on the date of grant using the Black-Scholes option pricing model. The following assumptions were used for each respective period: | ||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Risk-free interest rates | 1.6% – 1.7% | 0.9% – 1.8% | 0.7% – 1.0% | ||||||||||||||
Expected lives (in years) | 5.5 | 5.5 | 5.5 | ||||||||||||||
Expected dividend yield | —% | —% | —% | ||||||||||||||
Expected volatility | 65.9% – 70.5% | 62.1% – 70.6% | 67.8% – 72.2% | ||||||||||||||
Summary of Stock-based Compensation Expense | The following table summarizes stock-based compensation expense for the years ended December 31, 2014, 2013 and 2012 as follows (in thousands): | ||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Stock-based compensation expense | $ | 8,707 | $ | 7,476 | $ | 6,598 | |||||||||||
Tax benefit related thereto | (2,908 | ) | (2,469 | ) | (2,056 | ) | |||||||||||
Stock-based compensation expense, net of tax | $ | 5,799 | $ | 5,007 | $ | 4,542 | |||||||||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information and Non-cash Activity (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Supplemental Cash Flow Elements [Abstract] | ||||||||||||
Supplemental Cash Flow Information and Non-cash Activity | Supplemental disclosure of cash flow information follows (in thousands): | |||||||||||
Years Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Cash paid during the period for: | ||||||||||||
Interest | $ | 16,582 | $ | 9,576 | $ | 4,625 | ||||||
Income taxes | 16,124 | 15,872 | 18,146 | |||||||||
Non-cash items from investing and financing activities: | ||||||||||||
Purchase of computer equipment financed through capital leases | 12,153 | 6,455 | 4,647 | |||||||||
Leasehold improvement paid by landlord | — | 5,000 | — | |||||||||
Conversion of the Company's investment in a convertible note to equity | 3,151 | 6,765 | — | |||||||||
Transfer of inventory to property, plant and equipment | 10,149 | 1,422 | 6,737 | |||||||||
Purchases of property, plant, and equipment and seismic rental equipment financed through accounts payable | 472 | 909 | — | |||||||||
Sale of rental equipment financed with a note receivable | — | 3,636 | — | |||||||||
Operating_Leases_Tables
Operating Leases (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases, Operating [Abstract] | |||||
Future Rental Commitments Over the Next Five Years Under Non-cancelable Operating Leases | A summary of future rental commitments over the next five years under non-cancelable operating leases follows (in thousands): | ||||
Years Ending December 31, | |||||
2015 | $ | 29,604 | (a) | ||
2016 | 11,428 | (a) | |||
2017 | 9,519 | ||||
2018 | 8,808 | ||||
2019 | 8,730 | ||||
Total | $ | 68,089 | |||
(a) | Includes $19.9 million and $1.7 million of vessel leases for 2015 and 2016, respectively. |
Selected_Quarterly_Information1
Selected Quarterly Information (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Summary of selected quarterly information | A summary of selected quarterly information follows (in thousands, except per share amounts): | |||||||||||||||
Three Months Ended | ||||||||||||||||
Year Ended December 31, 2014 | March 31 | June 30 | September 30 | December 31 | ||||||||||||
Service revenues | $ | 110,696 | $ | 89,767 | $ | 71,923 | $ | 112,552 | ||||||||
Product revenues | 34,002 | 31,713 | 34,617 | 24,288 | ||||||||||||
Total net revenues | 144,698 | 121,480 | 106,540 | 136,840 | ||||||||||||
Gross profit (loss) | 56,854 | 38,228 | 29,223 | (62,082 | ) | |||||||||||
Income (loss) from operations | 19,671 | 3,785 | (5,349 | ) | (136,036 | ) | ||||||||||
Interest expense, net | (4,797 | ) | (4,934 | ) | (5,048 | ) | (4,603 | ) | ||||||||
Equity in losses of Investments | (1,688 | ) | (1,781 | ) | (5,558 | ) | (40,458 | ) | ||||||||
Other income (expense) | 68,526 | 6,066 | (622 | ) | 5,890 | |||||||||||
Income tax expense | 5,263 | 653 | 8,345 | 6,321 | ||||||||||||
Net (income) loss attributable to noncontrolling interests | (470 | ) | (1,295 | ) | 381 | 650 | ||||||||||
Net income (loss) applicable to common shares | $ | 75,979 | $ | 1,188 | $ | (24,541 | ) | $ | (180,878 | ) | ||||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 0.46 | $ | 0.01 | $ | (0.15 | ) | $ | (1.10 | ) | ||||||
Diluted | $ | 0.46 | $ | 0.01 | $ | (0.15 | ) | $ | (1.10 | ) | ||||||
Three Months Ended | ||||||||||||||||
Year Ended December 31, 2013 | March 31 | June 30 | September 30 | December 31 | ||||||||||||
Service revenues | $ | 89,949 | $ | 89,603 | $ | 44,679 | $ | 167,086 | ||||||||
Product revenues | 39,788 | 31,312 | 35,159 | 51,591 | ||||||||||||
Total net revenues | 129,737 | 120,915 | 79,838 | 218,677 | ||||||||||||
Gross profit (loss) | 34,957 | 36,618 | (15,104 | ) | 102,842 | |||||||||||
Income (loss) from operations | 1,923 | 6,770 | (56,528 | ) | 64,231 | |||||||||||
Interest expense, net | (1,066 | ) | (2,756 | ) | (4,281 | ) | (4,241 | ) | ||||||||
Equity in earnings (losses) of Investments | 1,116 | (6,338 | ) | (5,192 | ) | (31,906 | ) | |||||||||
Other income (expense) | 1,027 | (107,118 | ) | (74,301 | ) | (2,138 | ) | |||||||||
Income tax expense (benefit) | 1,201 | (38,705 | ) | 56,954 | 6,270 | |||||||||||
Net (income) loss attributable to noncontrolling interests | 76 | (59 | ) | 498 | 143 | |||||||||||
Preferred stock dividends | 338 | 338 | 5,338 | — | ||||||||||||
Net income (loss) applicable to common shares | $ | 1,537 | $ | (71,134 | ) | $ | (202,096 | ) | $ | 19,819 | ||||||
Net income (loss) per share: | ||||||||||||||||
Basic | $ | 0.01 | $ | (0.45 | ) | $ | (1.29 | ) | $ | 0.12 | ||||||
Diluted | $ | 0.01 | $ | (0.45 | ) | $ | (1.29 | ) | $ | 0.12 | ||||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||||||||||
Condensed Balance Sheet | This condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements and notes. | |||||||||||||||||||
December 31, 2014 | ||||||||||||||||||||
Balance Sheet | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
ASSETS | ||||||||||||||||||||
Current assets: | ||||||||||||||||||||
Cash and cash equivalents | $ | 109,514 | $ | — | $ | 64,094 | $ | — | $ | 173,608 | ||||||||||
Accounts receivable, net | 123 | 49,892 | 64,310 | — | 114,325 | |||||||||||||||
Unbilled receivables | — | 18,548 | 4,051 | — | 22,599 | |||||||||||||||
Inventories | — | 4,013 | 47,149 | — | 51,162 | |||||||||||||||
Prepaid expenses and other current assets | 6,692 | 2,697 | 8,769 | (4,496 | ) | 13,662 | ||||||||||||||
Total current assets | 116,329 | 75,150 | 188,373 | (4,496 | ) | 375,356 | ||||||||||||||
Deferred income tax asset | (7,852 | ) | 6,675 | 749 | 9,032 | 8,604 | ||||||||||||||
Property, plant, equipment and seismic rental equipment, net | 6,412 | 33,065 | 30,363 | — | 69,840 | |||||||||||||||
Multi-client data library, net | — | 96,423 | 22,246 | — | 118,669 | |||||||||||||||
Investment in subsidiaries | 675,499 | 278,294 | — | (953,793 | ) | — | ||||||||||||||
Goodwill | — | — | 27,388 | — | 27,388 | |||||||||||||||
Intangible assets, net | — | 6,254 | 534 | — | 6,788 | |||||||||||||||
Intercompany receivables | 29,979 | — | — | (29,979 | ) | — | ||||||||||||||
Other assets | 10,191 | 147 | 274 | — | 10,612 | |||||||||||||||
Total assets | $ | 830,558 | $ | 496,008 | $ | 269,927 | $ | (979,236 | ) | $ | 617,257 | |||||||||
LIABILITIES AND EQUITY | ||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||
Current maturities of long-term debt | $ | — | $ | 6,965 | $ | 684 | $ | — | $ | 7,649 | ||||||||||
Accounts payable | 4,308 | 12,028 | 20,527 | — | 36,863 | |||||||||||||||
Accrued expenses | 3,904 | 34,738 | 21,807 | 4,815 | 65,264 | |||||||||||||||
Accrued multi-client data library royalties | — | 34,624 | 595 | — | 35,219 | |||||||||||||||
Deferred revenue | — | 5,263 | 2,999 | — | 8,262 | |||||||||||||||
Total current liabilities | 8,212 | 93,618 | 46,612 | 4,815 | 153,257 | |||||||||||||||
Long-term debt, net of current maturities | 175,000 | 7,839 | 106 | — | 182,945 | |||||||||||||||
Intercompany payables | 509,124 | 8,892 | 21,087 | (539,103 | ) | — | ||||||||||||||
Other long-term liabilities | 2,609 | 130,985 | 10,489 | (279 | ) | 143,804 | ||||||||||||||
Total liabilities | 694,945 | 241,334 | 78,294 | (534,567 | ) | 480,006 | ||||||||||||||
Redeemable noncontrolling interest | — | — | 1,539 | — | 1,539 | |||||||||||||||
Equity: | ||||||||||||||||||||
Common stock | 1,645 | 290,460 | 19,138 | (309,598 | ) | 1,645 | ||||||||||||||
Additional paid-in capital | 887,749 | 180,700 | 234,234 | (414,934 | ) | 887,749 | ||||||||||||||
Accumulated earnings (deficit) | (734,409 | ) | 208,846 | 26,981 | (235,827 | ) | (734,409 | ) | ||||||||||||
Accumulated other comprehensive income (loss) | (12,807 | ) | 6,229 | (12,795 | ) | 6,566 | (12,807 | ) | ||||||||||||
Due from ION Geophysical Corporation | — | (431,561 | ) | (77,563 | ) | 509,124 | — | |||||||||||||
Treasury stock | (6,565 | ) | — | — | — | (6,565 | ) | |||||||||||||
Total stockholders’ equity | 135,613 | 254,674 | 189,995 | (444,669 | ) | 135,613 | ||||||||||||||
Noncontrolling interests | — | — | 99 | — | 99 | |||||||||||||||
Total equity | 135,613 | 254,674 | 190,094 | (444,669 | ) | 135,712 | ||||||||||||||
Total liabilities and equity | $ | 830,558 | $ | 496,008 | $ | 269,927 | $ | (979,236 | ) | $ | 617,257 | |||||||||
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 | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Total net revenues | $ | — | $ | 221,008 | $ | 291,302 | $ | (2,752 | ) | $ | 509,558 | |||||||||
Cost of goods sold | — | 262,829 | 187,258 | (2,752 | ) | 447,335 | ||||||||||||||
Gross profit (loss) | — | (41,821 | ) | 104,044 | — | 62,223 | ||||||||||||||
Total operating expenses | 38,961 | 88,481 | 52,710 | — | 180,152 | |||||||||||||||
Income (loss) from operations | (38,961 | ) | (130,302 | ) | 51,334 | — | (117,929 | ) | ||||||||||||
Interest expense, net | (18,537 | ) | (245 | ) | (600 | ) | — | (19,382 | ) | |||||||||||
Intercompany interest, net | (340 | ) | 2,146 | (1,806 | ) | — | — | |||||||||||||
Equity in earnings (losses) of investments | (74,615 | ) | 32,043 | 738 | (7,651 | ) | (49,485 | ) | ||||||||||||
Other income | 4,536 | 74,295 | 1,029 | — | 79,860 | |||||||||||||||
Income (loss) before income taxes | (127,917 | ) | (22,063 | ) | 50,695 | (7,651 | ) | (106,936 | ) | |||||||||||
Income tax expense | 335 | 1,277 | 18,970 | — | 20,582 | |||||||||||||||
Net income (loss) | (128,252 | ) | (23,340 | ) | 31,725 | (7,651 | ) | (127,518 | ) | |||||||||||
Net income attributable to noncontrolling interests | — | — | (734 | ) | — | (734 | ) | |||||||||||||
Net income (loss) applicable to common shares | $ | (128,252 | ) | $ | (23,340 | ) | $ | 30,991 | $ | (7,651 | ) | $ | (128,252 | ) | ||||||
Comprehensive net income (loss) | $ | (129,921 | ) | $ | (23,329 | ) | $ | 30,850 | $ | (6,787 | ) | $ | (129,187 | ) | ||||||
Comprehensive income attributable to noncontrolling interest | — | — | (734 | ) | — | (734 | ) | |||||||||||||
Comprehensive net income (loss) attributable to ION | $ | (129,921 | ) | $ | (23,329 | ) | $ | 30,116 | $ | (6,787 | ) | $ | (129,921 | ) | ||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Total net revenues | $ | — | $ | 337,570 | $ | 213,826 | $ | (2,229 | ) | $ | 549,167 | |||||||||
Cost of goods sold | — | 240,704 | 151,379 | (2,229 | ) | 389,854 | ||||||||||||||
Gross profit | — | 96,866 | 62,447 | — | 159,313 | |||||||||||||||
Total operating expenses | 35,054 | 62,028 | 45,835 | — | 142,917 | |||||||||||||||
Income (loss) from operations | (35,054 | ) | 34,838 | 16,612 | — | 16,396 | ||||||||||||||
Interest expense, net | (12,102 | ) | (49 | ) | (193 | ) | — | (12,344 | ) | |||||||||||
Intercompany interest, net | 411 | (1,374 | ) | 963 | — | — | ||||||||||||||
Equity in earnings (losses) of investments | (192,220 | ) | (19,755 | ) | (19,833 | ) | 189,488 | (42,320 | ) | |||||||||||
Other income (expense) | 12,166 | (193,289 | ) | (1,407 | ) | — | (182,530 | ) | ||||||||||||
Income (loss) before income taxes | (226,799 | ) | (179,629 | ) | (3,858 | ) | 189,488 | (220,798 | ) | |||||||||||
Income tax expense (benefit) | 19,061 | (10,883 | ) | 17,542 | — | 25,720 | ||||||||||||||
Net income (loss) | (245,860 | ) | (168,746 | ) | (21,400 | ) | 189,488 | (246,518 | ) | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 658 | — | 658 | |||||||||||||||
Net income (loss) attributable to ION | (245,860 | ) | (168,746 | ) | (20,742 | ) | 189,488 | (245,860 | ) | |||||||||||
Payment of preferred dividends and conversion payment | 6,014 | — | — | — | 6,014 | |||||||||||||||
Net income (loss) applicable to common shares | $ | (251,874 | ) | $ | (168,746 | ) | $ | (20,742 | ) | $ | 189,488 | $ | (251,874 | ) | ||||||
Comprehensive net income (loss) | $ | (245,112 | ) | $ | (168,167 | ) | $ | (20,779 | ) | $ | 188,288 | $ | (245,770 | ) | ||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 658 | — | 658 | |||||||||||||||
Comprehensive net income (loss) attributable to ION | $ | (245,112 | ) | $ | (168,167 | ) | $ | (20,121 | ) | $ | 188,288 | $ | (245,112 | ) | ||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Total net revenues | $ | — | $ | 311,758 | $ | 214,939 | $ | (380 | ) | $ | 526,317 | |||||||||
Cost of goods sold | — | 192,639 | 118,257 | (380 | ) | 310,516 | ||||||||||||||
Gross profit | — | 119,119 | 96,682 | — | 215,801 | |||||||||||||||
Total operating expenses | 35,982 | 61,315 | 43,977 | — | 141,274 | |||||||||||||||
Income (loss) from operations | (35,982 | ) | 57,804 | 52,705 | — | 74,527 | ||||||||||||||
Interest expense, net | (5,137 | ) | 198 | (326 | ) | — | (5,265 | ) | ||||||||||||
Intercompany interest, net | 232 | (629 | ) | 397 | — | — | ||||||||||||||
Equity in earnings (losses) of investments | 58,162 | 33,958 | — | (91,823 | ) | 297 | ||||||||||||||
Other income (expense) | 29,447 | (10,334 | ) | (1,989 | ) | — | 17,124 | |||||||||||||
Income (loss) before income taxes | 46,722 | 80,997 | 50,787 | (91,823 | ) | 86,683 | ||||||||||||||
Income tax expense (benefit) | (16,593 | ) | 21,771 | 18,679 | — | 23,857 | ||||||||||||||
Net income (loss) | 63,315 | 59,226 | 32,108 | (91,823 | ) | 62,826 | ||||||||||||||
Net loss attributable to noncontrolling interests | — | — | 489 | — | 489 | |||||||||||||||
Net income (loss) attributable to ION | 63,315 | 59,226 | 32,597 | (91,823 | ) | 63,315 | ||||||||||||||
Preferred stock dividends | 1,352 | — | — | — | 1,352 | |||||||||||||||
Net income (loss) applicable to common shares | $ | 61,963 | $ | 59,226 | $ | 32,597 | $ | (91,823 | ) | $ | 61,963 | |||||||||
Comprehensive net income (loss) | $ | 67,622 | $ | 62,085 | $ | 34,967 | $ | (97,541 | ) | $ | 67,133 | |||||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 489 | — | 489 | |||||||||||||||
Comprehensive net income (loss) attributable to ION | $ | 67,622 | $ | 62,085 | $ | 35,456 | $ | (97,541 | ) | $ | 67,622 | |||||||||
Condensed Cash Flow Statement | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Statement of Cash Flows | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Total Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (53,925 | ) | $ | 107,590 | $ | 76,115 | $ | 129,780 | |||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Investment in multi-client data library | — | (67,552 | ) | (233 | ) | (67,785 | ) | |||||||||||||
Purchase of property, plant, equipment and seismic rental equipment | (1,240 | ) | (4,530 | ) | (2,494 | ) | (8,264 | ) | ||||||||||||
Repayment of advances by INOVA Geophysical | 1,000 | — | — | 1,000 | ||||||||||||||||
Net investment in and advances to OceanGeo B.V. prior to its consolidation | — | — | (3,074 | ) | (3,074 | ) | ||||||||||||||
Net proceeds from sale of Source product line | — | 9,881 | 4,513 | 14,394 | ||||||||||||||||
Proceeds from sale of cost method investments | 14,051 | — | — | 14,051 | ||||||||||||||||
Other investing activities | 579 | 26 | 323 | 928 | ||||||||||||||||
Net cash provided by (used in) investing activities | 14,390 | (62,175 | ) | (965 | ) | (48,750 | ) | |||||||||||||
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 | — | (5,384 | ) | (7,614 | ) | (12,998 | ) | |||||||||||||
Cost associated with issuance of debt | (2,194 | ) | — | — | (2,194 | ) | ||||||||||||||
Intercompany lending | 61,324 | (40,031 | ) | (21,293 | ) | — | ||||||||||||||
Acquisition of noncontrolling interest | — | — | (6,000 | ) | (6,000 | ) | ||||||||||||||
Proceeds from employee stock purchases and exercise of stock options | 577 | — | — | 577 | ||||||||||||||||
Other financing activities | (359 | ) | — | — | (359 | ) | ||||||||||||||
Net cash provided by (used in) financing activities | 24,348 | (45,415 | ) | (34,907 | ) | (55,974 | ) | |||||||||||||
Effect of change in foreign currency exchange rates on cash and cash equivalents | — | — | 496 | 496 | ||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (15,187 | ) | — | 40,739 | 25,552 | |||||||||||||||
Cash and cash equivalents at beginning of period | 124,701 | — | 23,355 | 148,056 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 109,514 | $ | — | $ | 64,094 | $ | 173,608 | ||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Statement of Cash Flows | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | |||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net cash provided by (used in) operating activities | $ | (50,731 | ) | $ | 166,838 | $ | 31,480 | $ | — | $ | 147,587 | |||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Investment in multi-client data library | — | (111,689 | ) | (2,893 | ) | — | (114,582 | ) | ||||||||||||
Purchase of property, plant, equipment and seismic rental equipment | (2,075 | ) | (10,171 | ) | (4,668 | ) | — | (16,914 | ) | |||||||||||
Net advances to INOVA Geophysical | (5,000 | ) | — | — | — | (5,000 | ) | |||||||||||||
Investment in and advances to OceanGeo B.V. | — | — | (24,755 | ) | — | (24,755 | ) | |||||||||||||
Proceeds from sale of cost method investments | 4,150 | — | — | — | 4,150 | |||||||||||||||
Investment in convertible notes | (2,000 | ) | — | — | — | (2,000 | ) | |||||||||||||
Capital contribution to affiliate | (5,695 | ) | (7,897 | ) | — | 13,592 | — | |||||||||||||
Other investing activities | — | 128 | — | — | 128 | |||||||||||||||
Net cash provided by (used in) investing activities | (10,620 | ) | (129,629 | ) | (32,316 | ) | 13,592 | (158,973 | ) | |||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Proceeds from issuance of notes | 175,000 | — | — | — | 175,000 | |||||||||||||||
Payments under revolving line of credit | (97,250 | ) | — | — | — | (97,250 | ) | |||||||||||||
Borrowings under revolving line of credit | 35,000 | — | — | — | 35,000 | |||||||||||||||
Payments on notes payable and long-term debt | — | (3,249 | ) | (1,112 | ) | — | (4,361 | ) | ||||||||||||
Cost associated with issuance of debt | (6,773 | ) | — | — | — | (6,773 | ) | |||||||||||||
Capital contribution from affiliate | — | 5,695 | 7,897 | (13,592 | ) | — | ||||||||||||||
Intercompany lending | 52,646 | (39,655 | ) | (12,991 | ) | — | — | |||||||||||||
Payment of preferred dividends | (6,014 | ) | — | — | — | (6,014 | ) | |||||||||||||
Proceeds from employee stock purchases and exercise of stock options | 2,527 | — | — | — | 2,527 | |||||||||||||||
Other financing activities | 573 | — | — | — | 573 | |||||||||||||||
Net cash provided by (used in) financing activities | 155,709 | (37,209 | ) | (6,206 | ) | (13,592 | ) | 98,702 | ||||||||||||
Effect of change in foreign currency exchange rates on cash and cash equivalents | — | — | (231 | ) | — | (231 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 94,358 | — | (7,273 | ) | — | 87,085 | ||||||||||||||
Cash and cash equivalents at beginning of period | 30,343 | — | 30,628 | — | 60,971 | |||||||||||||||
Cash and cash equivalents at end of period | $ | 124,701 | $ | — | $ | 23,355 | $ | — | $ | 148,056 | ||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Statement of Cash Flows | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Total Consolidated | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||||||
Net cash provided by operating activities | $ | 19,362 | $ | 105,768 | $ | 43,951 | $ | 169,081 | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||||||
Investment in multi-client data library | — | (121,424 | ) | (24,203 | ) | (145,627 | ) | |||||||||||||
Purchase of property, plant, equipment and seismic rental equipment | (2,485 | ) | (9,947 | ) | (4,218 | ) | (16,650 | ) | ||||||||||||
Maturity of short-term investments | 20,000 | — | — | 20,000 | ||||||||||||||||
Investment in convertible notes | (2,000 | ) | — | — | (2,000 | ) | ||||||||||||||
Net cash provided by (used in) investing activities | 15,515 | (131,371 | ) | (28,421 | ) | (144,277 | ) | |||||||||||||
Cash flows from financing activities: | ||||||||||||||||||||
Payments under revolving line of credit | (51,000 | ) | — | — | (51,000 | ) | ||||||||||||||
Borrowings under revolving line of credit | 148,250 | — | — | 148,250 | ||||||||||||||||
Payments on notes payable and long-term debt | (99,270 | ) | (1,626 | ) | (806 | ) | (101,702 | ) | ||||||||||||
Intercompany lending | (21,699 | ) | 27,229 | (5,530 | ) | — | ||||||||||||||
Payment of preferred dividends | (1,352 | ) | — | — | (1,352 | ) | ||||||||||||||
Proceeds from employee stock purchases and exercise of stock options | 807 | — | — | 807 | ||||||||||||||||
Other financing activities | (1,669 | ) | — | 212 | (1,457 | ) | ||||||||||||||
Net cash provided by (used in) financing activities | (25,933 | ) | 25,603 | (6,124 | ) | (6,454 | ) | |||||||||||||
Effect of change in foreign currency exchange rates on cash and cash equivalents | 2 | — | 217 | 219 | ||||||||||||||||
Net increase in cash and cash equivalents | 8,946 | — | 9,623 | 18,569 | ||||||||||||||||
Cash and cash equivalents at beginning of period | 21,397 | — | 21,005 | 42,402 | ||||||||||||||||
Cash and cash equivalents at end of period | $ | 30,343 | $ | — | $ | 30,628 | $ | 60,971 | ||||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - Cash and Cash Equivalents and Foreign Currency Gains (Losses) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash and Cash Equivalents [Abstract] | |||
Short-term restricted cash | $0.40 | $0.70 | |
Foreign Currency Gains and Losses | |||
Total foreign currency transaction gains (losses) | ($1.80) | ($1.10) | ($1.90) |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Property, Plant, Equipment and Seismic Rental Equipment Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum [Member] | Machinery and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, equipment and seismic rental equipment useful life | 3 years |
Minimum [Member] | Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, equipment and seismic rental equipment useful life | 5 years |
Minimum [Member] | Rental equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, equipment and seismic rental equipment useful life | 3 years |
Minimum [Member] | Leased equipment and other [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, equipment and seismic rental equipment useful life | 3 years |
Maximum [Member] | Machinery and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, equipment and seismic rental equipment useful life | 7 years |
Maximum [Member] | Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, equipment and seismic rental equipment useful life | 25 years |
Maximum [Member] | Rental equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, equipment and seismic rental equipment useful life | 5 years |
Maximum [Member] | Leased equipment and other [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, equipment and seismic rental equipment useful life | 10 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Multi-client Data Library Costs and Accumulated Amortization (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounting Policies [Abstract] | |||
Multi-client data library capitalized income | $3,800,000 | $8,300,000 | $2,100,000 |
Multi Client Data Creation Cost [Abstract] | |||
Gross costs of multi-client data creation | 849,522,000 | 791,522,000 | |
Less accumulated amortization | -611,651,000 | -547,277,000 | |
Less impairments to multi-client data library | -119,202,000 | -5,461,000 | |
Total | 118,669,000 | 238,784,000 | |
Impairment of multi-client data library | $0 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Goodwill [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Operational forecast period used in fair value inputs | 3 years |
Customer relationships [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets other than goodwill, estimated period of benefit | 10 years |
Customer relationships [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets other than goodwill, estimated period of benefit | 15 years |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Revenue Recognition and Product Warranty (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Minimum [Member] | |
Product Information [Line Items] | |
Time based licenses, term revenue recognized | 2 years |
Range of product warranty | 30 days |
Maximum [Member] | |
Product Information [Line Items] | |
Time based licenses, term revenue recognized | 5 years |
Range of product warranty | 3 years |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies - Concentration of Foreign Sales Risk (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Minimum [Member] | |||
Concentration Risk [Line Items] | |||
Reduction in oil prices | 45.00% | ||
Maximum [Member] | |||
Concentration Risk [Line Items] | |||
Reduction in oil prices | 50.00% | ||
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | |||
Concentration Risk [Line Items] | |||
International sales comprised of total net revenue | 74.00% | 73.00% | 69.00% |
Impairments_Restructurings_and2
Impairments, Restructurings, and Other Charges - Restructuring Pre-tax Charges (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
INOVA Geophysical [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Outstanding receivables due from INOVA | $5,500,000 |
INOVA Geophysical [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Write-down of note receivable from OceanGeo | 30,700,000 |
Charges related to excess and obsolete inventory and customer bad debts | 3,500,000 |
Cost of goods sold [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | 108,542,000 |
Operating expenses [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | 33,400,000 |
Equity In earnings (losses) of investments [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | 34,199,000 |
Income (loss) before income taxes [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | 176,141,000 |
Multi-client data library, net [Member] | Cost of goods sold [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | 100,100,000 |
Multi-client data library, net [Member] | Income (loss) before income taxes [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | 100,100,000 |
Equity method investments [Member] | Equity In earnings (losses) of investments [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | 34,199,000 |
Equity method investments [Member] | Income (loss) before income taxes [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | 34,199,000 |
Goodwill and Intangible Assets [Member] | Operating expenses [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | 23,284,000 |
Goodwill and Intangible Assets [Member] | Income (loss) before income taxes [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | 23,284,000 |
Asset write-downs and other [Member] | Cost of goods sold [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | 8,051,000 |
Asset write-downs and other [Member] | Operating expenses [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | 8,214,000 |
Asset write-downs and other [Member] | Income (loss) before income taxes [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | 16,265,000 |
Severance charges [Member] | Cost of goods sold [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | 391,000 |
Severance charges [Member] | Operating expenses [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | 1,902,000 |
Severance charges [Member] | Income (loss) before income taxes [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | $2,293,000 |
Impairments_Restructurings_and3
Impairments, Restructurings, and Other Charges - Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | |
Restructuring Cost and Reserve [Line Items] | |||||
Impairment of multi-client data library | $100,100,000 | $5,461,000 | $0 | ||
Percentage of headcount reduction during period | 10.00% | ||||
Expected annual cash savings from reduction in headcount | 15,000,000 | ||||
Write-down of excess and obsolete inventory | 6,952,000 | 21,197,000 | 1,326,000 | ||
Write-down of certain receivables | 8,200,000 | ||||
Systems [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 27,983,000 | ||||
Percentage of headcount reduction as of period end | 31.00% | ||||
Cost of goods sold [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 108,542,000 | ||||
Cost of goods sold [Member] | Systems [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 25,727,000 | ||||
Operating expenses [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 33,400,000 | ||||
Operating expenses [Member] | Systems [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 2,256,000 | ||||
Facility charges [Member] | Systems [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 647,000 | ||||
Facility charges [Member] | Cost of goods sold [Member] | Systems [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 647,000 | ||||
Facility charges [Member] | Operating expenses [Member] | Systems [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 0 | ||||
Severance charges [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructing charges, incurred costs | 2,300,000 | ||||
Severance charges [Member] | Systems [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 5,602,000 | ||||
Severance charges [Member] | Cost of goods sold [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 391,000 | ||||
Severance charges [Member] | Cost of goods sold [Member] | Systems [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 3,729,000 | ||||
Severance charges [Member] | Operating expenses [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 1,902,000 | ||||
Severance charges [Member] | Operating expenses [Member] | Systems [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 1,873,000 | ||||
Asset write-downs and other [Member] | Systems [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 21,734,000 | ||||
Asset write-downs and other [Member] | Cost of goods sold [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 8,051,000 | ||||
Asset write-downs and other [Member] | Cost of goods sold [Member] | Systems [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 21,351,000 | ||||
Asset write-downs and other [Member] | Operating expenses [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | 8,214,000 | ||||
Asset write-downs and other [Member] | Operating expenses [Member] | Systems [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring charges | $383,000 |
Acquisition_of_OceanGeo_Narrat
Acquisition of OceanGeo - Narrative (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 9 Months Ended | ||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2014 | Sep. 30, 2014 | Jan. 31, 2014 | Oct. 31, 2013 | Feb. 28, 2013 | |
Business Acquisition [Line Items] | ||||||||||||||||
Revenues | $136,840,000 | $106,540,000 | $121,480,000 | $144,698,000 | $218,677,000 | $79,838,000 | $120,915,000 | $129,737,000 | $509,558,000 | $549,167,000 | $526,317,000 | |||||
Income from operations | -136,036,000 | -5,349,000 | 3,785,000 | 19,671,000 | 64,231,000 | -56,528,000 | 6,770,000 | 1,923,000 | -117,929,000 | 16,396,000 | 74,527,000 | |||||
Operating segments [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Revenues | 509,558,000 | 549,167,000 | 526,317,000 | |||||||||||||
Ocean Bottom Services [Member] | Operating segments [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Revenues | 103,244,000 | 0 | 0 | |||||||||||||
Income from operations | 19,070,000 | 0 | 0 | |||||||||||||
Property, Plant and Equipment [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Retrospective adjustments related to revisions of estimates of recoverability | 3,900,000 | |||||||||||||||
OceanGeo [Member] | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||
Increase in ownership percentage | 30.00% | 40.00% | 30.00% | |||||||||||||
Percentage of ownership interest | 100.00% | 70.00% | ||||||||||||||
Maximum advance capacity | 25,000,000 | |||||||||||||||
Working capital loan to investee | 40,500,000 | 40,500,000 | 18,900,000 | |||||||||||||
Total consideration | 6,000,000 | |||||||||||||||
Acquisition related costs | 1,300,000 | |||||||||||||||
Revenues | 103,200,000 | |||||||||||||||
Income from operations | $19,100,000 |
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 $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Business Combinations [Abstract] | ||
Net revenues | $518,742 | $580,834 |
Loss from operations | -114,346 | -19,300 |
Net loss | -126,492 | -262,974 |
Net loss attributable to ION | ($127,226) | ($268,330) |
Basic and diluted net loss per common share (usd per share) | ($0.78) | ($1.69) |
Segment_and_Geographic_Informa2
Segment and Geographic Information - Summary of Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
segment | |||||||||||
Segment Reporting [Abstract] | |||||||||||
Number of operating segments | 4 | ||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Revenues | $136,840 | $106,540 | $121,480 | $144,698 | $218,677 | $79,838 | $120,915 | $129,737 | $509,558 | $549,167 | $526,317 |
Gross profit (loss) | -62,082 | 29,223 | 38,228 | 56,854 | 102,842 | -15,104 | 36,618 | 34,957 | 62,223 | 159,313 | 215,801 |
Income (loss) from operations | -136,036 | -5,349 | 3,785 | 19,671 | 64,231 | -56,528 | 6,770 | 1,923 | -117,929 | 16,396 | 74,527 |
Interest expense, net | -4,603 | -5,048 | -4,934 | -4,797 | -4,241 | -4,281 | -2,756 | -1,066 | -19,382 | -12,344 | -5,265 |
Equity in earnings (losses) of investments | -40,458 | -5,558 | -1,781 | -1,688 | -49,485 | -42,320 | 297 | ||||
Other income (expense) | 5,890 | -622 | 6,066 | 68,526 | -2,138 | -74,301 | -107,118 | 1,027 | 79,860 | -182,530 | 17,124 |
Income (loss) before income taxes | -106,936 | -220,798 | 86,683 | ||||||||
Impairment of multi-client data library | 100,100 | 5,461 | 0 | ||||||||
Write down of goodwill | 21,884 | ||||||||||
Systems [Member] | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Write down of goodwill | 21,884 | ||||||||||
Software [Member] | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Write down of goodwill | 0 | ||||||||||
Operating segments [Member] | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Revenues | 509,558 | 549,167 | 526,317 | ||||||||
Gross profit (loss) | 62,223 | 159,313 | 215,801 | ||||||||
Gross margin | 12.00% | 29.00% | 41.00% | ||||||||
Operating segments [Member] | Solutions [Member] | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Revenues | 277,904 | 387,384 | 351,265 | ||||||||
Gross profit (loss) | -24,345 | 111,108 | 132,950 | ||||||||
Gross margin | -9.00% | 29.00% | 38.00% | ||||||||
Income (loss) from operations | -80,653 | 61,146 | 88,589 | ||||||||
Operating segments [Member] | Solutions [Member] | New Venture [Member] | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Revenues | 98,649 | 154,578 | 147,346 | ||||||||
Operating segments [Member] | Solutions [Member] | Data Library [Member] | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Revenues | 66,180 | 111,998 | 88,085 | ||||||||
Operating segments [Member] | Solutions [Member] | New Venture and Data Library [Member] | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Revenues | 164,829 | 266,576 | 235,431 | ||||||||
Operating segments [Member] | Solutions [Member] | Data Processing [Member] | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Revenues | 113,075 | 120,808 | 115,834 | ||||||||
Operating segments [Member] | Systems [Member] | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Revenues | 88,417 | 122,432 | 131,996 | ||||||||
Gross profit (loss) | 29,829 | 19,999 | 50,790 | ||||||||
Gross margin | 34.00% | 16.00% | 38.00% | ||||||||
Income (loss) from operations | -23,521 | -9,957 | 10,132 | ||||||||
Operating segments [Member] | Systems [Member] | Towed Streamer [Member] | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Revenues | 43,995 | 66,991 | 77,769 | ||||||||
Operating segments [Member] | Systems [Member] | Ocean Bottom Equipment [Member] | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Revenues | 0 | 7,307 | 14,823 | ||||||||
Operating segments [Member] | Systems [Member] | Other [Member] | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Revenues | 44,422 | 48,134 | 39,404 | ||||||||
Operating segments [Member] | Software [Member] | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Revenues | 39,993 | 39,351 | 43,056 | ||||||||
Gross profit (loss) | 28,835 | 28,206 | 32,061 | ||||||||
Gross margin | 72.00% | 72.00% | 74.00% | ||||||||
Income (loss) from operations | 20,212 | 23,602 | 28,129 | ||||||||
Operating segments [Member] | Software [Member] | Software Systems [Member] | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Revenues | 36,203 | 35,418 | 39,738 | ||||||||
Operating segments [Member] | Software [Member] | Services [Member] | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Revenues | 3,790 | 3,933 | 3,318 | ||||||||
Operating segments [Member] | Ocean Bottom Services [Member] | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Revenues | 103,244 | 0 | 0 | ||||||||
Gross profit (loss) | 27,904 | 0 | 0 | ||||||||
Gross margin | 27.00% | 0.00% | 0.00% | ||||||||
Income (loss) from operations | 19,070 | 0 | 0 | ||||||||
Corporate and other [Member] | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Income (loss) from operations | ($53,037) | ($58,395) | ($52,323) |
Segment_and_Geographic_Informa3
Segment and Geographic Information - Depreciation and Amortization (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Depreciation and amortization | |||
Depreciation and amortization (including multi-client data library) | $92,030 | $104,874 | $105,282 |
Operating segments [Member] | Solutions [Member] | |||
Depreciation and amortization | |||
Depreciation and amortization (including multi-client data library) | 80,138 | 99,774 | 98,342 |
Operating segments [Member] | Systems [Member] | |||
Depreciation and amortization | |||
Depreciation and amortization (including multi-client data library) | 1,860 | 2,665 | 4,185 |
Operating segments [Member] | Software [Member] | |||
Depreciation and amortization | |||
Depreciation and amortization (including multi-client data library) | 989 | 699 | 776 |
Operating segments [Member] | Ocean Bottom Services [Member] | |||
Depreciation and amortization | |||
Depreciation and amortization (including multi-client data library) | 6,517 | 0 | 0 |
Corporate and other [Member] | |||
Depreciation and amortization | |||
Depreciation and amortization (including multi-client data library) | $2,526 | $1,736 | $1,979 |
Segment_and_Geographic_Informa4
Segment and Geographic Information - Summary of Total Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting of Assets by Segments and Geographical Areas | ||
Total assets by geographic area | $617,257 | $864,671 |
North America [Member] | ||
Segment Reporting of Assets by Segments and Geographical Areas | ||
Total assets by geographic area | 347,419 | 609,739 |
Europe [Member] | ||
Segment Reporting of Assets by Segments and Geographical Areas | ||
Total assets by geographic area | 117,622 | 76,601 |
Middle East [Member] | ||
Segment Reporting of Assets by Segments and Geographical Areas | ||
Total assets by geographic area | 96,532 | 128,909 |
Latin America [Member] | ||
Segment Reporting of Assets by Segments and Geographical Areas | ||
Total assets by geographic area | 36,529 | 33,375 |
Other [Member] | ||
Segment Reporting of Assets by Segments and Geographical Areas | ||
Total assets by geographic area | 19,155 | 16,047 |
Operating segments [Member] | Solutions [Member] | ||
Segment Reporting of Assets by Segments and Geographical Areas | ||
Total assets by geographic area | 265,505 | 445,581 |
Operating segments [Member] | Systems [Member] | ||
Segment Reporting of Assets by Segments and Geographical Areas | ||
Total assets by geographic area | 84,465 | 139,074 |
Operating segments [Member] | Software [Member] | ||
Segment Reporting of Assets by Segments and Geographical Areas | ||
Total assets by geographic area | 38,479 | 45,343 |
Operating segments [Member] | Ocean Bottom Services [Member] | ||
Segment Reporting of Assets by Segments and Geographical Areas | ||
Total assets by geographic area | 56,637 | 0 |
Corporate and other [Member] | ||
Segment Reporting of Assets by Segments and Geographical Areas | ||
Total assets by geographic area | $172,171 | $234,673 |
Segment_and_Geographic_Informa5
Segment and Geographic Information - Net Revenues by Geographic Area (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of net revenues by geographic area | |||||||||||
Net revenues | $136,840 | $106,540 | $121,480 | $144,698 | $218,677 | $79,838 | $120,915 | $129,737 | $509,558 | $549,167 | $526,317 |
North America [Member] | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | 130,224 | 150,160 | 164,157 | ||||||||
Latin America [Member] | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | 111,078 | 54,008 | 46,212 | ||||||||
Europe [Member] | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | 100,188 | 198,977 | 200,589 | ||||||||
Africa [Member] | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | 75,507 | 16,474 | 18,469 | ||||||||
Asia Pacific [Member] | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | 49,881 | 52,672 | 55,028 | ||||||||
Middle East [Member] | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | 39,142 | 63,157 | 37,471 | ||||||||
Commonwealth of Independent States [Member] | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | $3,538 | $13,719 | $4,391 |
Equity_Method_Investments_Chan
Equity Method Investments - Changes in Equity Method Investments (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||||
Investment balance, beginning balance | $53,865,000 | ||||
Equity in losses of investments | -31,906,000 | -5,192,000 | -6,338,000 | 1,116,000 | -18,787,000 |
Advances to OceanGeo (prior to consolidation) | 3,683,000 | ||||
Acquisition of controlling interest (consolidation) of OceanGeo | -7,221,000 | ||||
Equity interest in investees' other comprehensive income (loss) | -1,987,000 | ||||
Write-down of equity-method investment in INOVA | -29,553,000 | ||||
Investment balance, ending balance | 53,865,000 | 0 | |||
INOVA Geophysical [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investment balance, beginning balance | 51,065,000 | ||||
Equity in losses of investments | -19,525,000 | ||||
Advances to OceanGeo (prior to consolidation) | 0 | ||||
Acquisition of controlling interest (consolidation) of OceanGeo | 0 | ||||
Equity interest in investees' other comprehensive income (loss) | -1,987,000 | ||||
Write-down of equity-method investment in INOVA | -29,553,000 | ||||
Investment balance, ending balance | 0 | ||||
Write-down due to impairment of share of INOVA's AOCI | 1,100,000 | ||||
Total impairment recorded for INOVA | 30,700,000 | ||||
OceanGeo [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investment balance, beginning balance | 2,800,000 | ||||
Equity in losses of investments | 738,000 | ||||
Advances to OceanGeo (prior to consolidation) | 3,683,000 | ||||
Acquisition of controlling interest (consolidation) of OceanGeo | -7,221,000 | ||||
Equity interest in investees' other comprehensive income (loss) | 0 | ||||
Investment balance, ending balance | $0 |
Equity_Method_Investments_Bala
Equity Method Investments - Balance Sheet Information (Details) (INOVA Geophysical [Member], USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
INOVA Geophysical [Member] | ||
Equity Method Investment Summarized Financial Information Balance Sheets | ||
Current assets | $105,085 | $147,475 |
Non-current assets | 63,212 | 71,551 |
Current liabilities | 99,732 | 110,972 |
Non-current liabilities | 6,498 | 2,731 |
Equity | $62,067 | $105,323 |
Equity_Method_Investments_Inco
Equity Method Investments - Income Statement Information (Details) (INOVA Geophysical [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
INOVA Geophysical [Member] | |||
Equity Method Investment Summarized Financial Information Income Statements | |||
Total net revenues | $89,975,000 | $183,619,000 | $188,336,000 |
Gross profit (loss) | 247,000 | -1,988,000 | 39,320,000 |
Income (loss) from operations | -34,540,000 | -44,463,000 | 3,241,000 |
Net income (loss) | -40,087,000 | -46,149,000 | 2,197,000 |
Impact of write-down of excess and obsolete inventory on gross profit (loss) | 3,800,000 | ||
Impact of charges related to customer bad debts on income (loss) | 3,400,000 | ||
Impact of restructuring and special items associated with the impairment of intangible assets on gross profit (loss) | 36,500,000 | ||
Impact of restructuring and special items on net income (loss) | $1,800,000 |
Equity_Method_Investments_Narr
Equity Method Investments - Narrative (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Feb. 12, 2013 | Mar. 24, 2010 | |
Member | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments | $0 | $53,865,000 | ||
INOVA Geophysical [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percentage of equity method investment | 49.00% | |||
Ownership percentage by parent | 51.00% | |||
Number of members appointed by related party | 4 | |||
Number of members appointed by Company | 3 | |||
Equity method investments | 0 | 51,065,000 | ||
Write-down of note receivable from OceanGeo | 30,700,000 | |||
Equity Method Investment, Accumulated Comprehensive Income (Loss) | $0 |
Longterm_Debt_and_Lease_Obliga2
Long-term Debt and Lease Obligations - Obligations (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Obligations | ||
Carrying value of long-term debt and lease obligations | $190,594 | $220,152 |
Current portion of long-term debt and lease obligations | -7,649 | -5,906 |
Non-current portion of long-term debt and lease obligations | 182,945 | 214,246 |
Senior secured second-priority notes [Member] | ||
Obligations | ||
Carrying value of long-term debt and lease obligations | 175,000 | 175,000 |
Revolving line of credit [Member] | ||
Obligations | ||
Carrying value of long-term debt and lease obligations | 0 | 35,000 |
Equipment capital leases [Member] | ||
Obligations | ||
Carrying value of long-term debt and lease obligations | 15,059 | 8,651 |
Other debt obligations [Member] | ||
Obligations | ||
Carrying value of long-term debt and lease obligations | $535 | $1,501 |
Longterm_Debt_and_Lease_Obliga3
Long-term Debt and Lease Obligations - Narrative (Details) (USD $) | 12 Months Ended | 0 Months Ended | |
Dec. 31, 2014 | Aug. 22, 2014 | 13-May-13 | |
Debt Instrument [Line Items] | |||
Interest accrues under the capital leases | 4.00% | ||
Line of credit [Member] | PNC Bank, National Association (PNC) [Member] | |||
Debt Instrument [Line Items] | |||
Revolving line of credit, maximum | $175,000,000 | ||
Available borrowing capacity | 68,200,000 | ||
Outstanding term loan indebtedness under Credit Facility | 0 | ||
Percentage of equity interest securing obligations of borrowers | 65.00% | ||
Payments of debt restructuring costs | 1,900,000 | ||
Amortization period of unamortized debt issuance expense | 3 years 6 months | ||
Line of credit [Member] | China Merchants Bank Co. (CMB) [Member] | |||
Debt Instrument [Line Items] | |||
Unamortized debt issuance expense | 300,000 | ||
Senior secured second-priority notes [Member] | China Merchants Bank Co. (CMB) [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount of debt | 175,000,000 | ||
Stated rate on debt | 8.13% | ||
Uncommitted term facility [Member] | Line of credit [Member] | PNC Bank, National Association (PNC) [Member] | |||
Debt Instrument [Line Items] | |||
Revolving line of credit, maximum | 50,000,000 | ||
Revolving line of credit [Member] | Line of credit [Member] | PNC Bank, National Association (PNC) [Member] | |||
Debt Instrument [Line Items] | |||
Revolving line of credit, maximum | 125,000,000 | ||
Current borrowing capacity | 80,000,000 | ||
Potential increase to borrowing capacity | 45,000,000 | ||
Number of days prior to maturity date debt may mature | 90 days | ||
Letter of credit [Member] | Line of credit [Member] | PNC Bank, National Association (PNC) [Member] | |||
Debt Instrument [Line Items] | |||
Sublimit for issuance of standby letters of credit | $15,000,000 | ||
Federal Funds Effective Swap Rate [Member] | Revolving line of credit [Member] | Line of credit [Member] | PNC Bank, National Association (PNC) [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
London Interbank Offered Rate (LIBOR) [Member] | Revolving line of credit [Member] | Line of credit [Member] | PNC Bank, National Association (PNC) [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Minimum [Member] | Line of credit [Member] | PNC Bank, National Association (PNC) [Member] | |||
Debt Instrument [Line Items] | |||
Fixed charge coverage ratio | 1.1 | ||
Maximum [Member] | Line of credit [Member] | PNC Bank, National Association (PNC) [Member] | |||
Debt Instrument [Line Items] | |||
Leverage ratio | 3 |
Longterm_Debt_and_Lease_Obliga4
Long-term Debt and Lease Obligations - Redemption Percentages for Future Periods (Details) | 12 Months Ended |
Dec. 31, 2014 | |
2015 | |
Debt Instrument, Redemption [Line Items] | |
Notes redemption percentages | 104.06% |
2016 | |
Debt Instrument, Redemption [Line Items] | |
Notes redemption percentages | 102.03% |
2017 and thereafter | |
Debt Instrument, Redemption [Line Items] | |
Notes redemption percentages | 100.00% |
Longterm_Debt_and_Lease_Obliga5
Long-term Debt and Lease Obligations - Equipment Capital Leases (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Long-term Debt [Member] | |
Equipment Capital Leases | |
2015 | $535 |
2016 | 0 |
2017 | 0 |
2018 | 175,000 |
2019 | 0 |
Thereafter | 0 |
Total | 175,535 |
Capital Lease Obligations [Member] | |
Equipment Capital Leases | |
2015 | 7,114 |
2016 | 5,383 |
2017 | 2,562 |
2018 | 0 |
2019 | 0 |
Thereafter | 0 |
Total | $15,059 |
Net_Income_Loss_per_Common_Sha2
Net Income (Loss) per Common Share - Narrative (Details) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 29, 2013 | |
Net Income (Loss) Per Common Share (Textual) [Abstract] | |||||
Number of shares issuable under anti-dilutive options | 8,986,025 | 8,258,500 | 4,864,553 | ||
Number of outstanding shares of Series D Cumulative Convertible Preferred Stock | 27,000 | ||||
Number of shares of common stock | 6,065,075 |
Net_Income_Loss_per_Common_Sha3
Net Income (Loss) per Common Share - Computation of Basic and Diluted Net Income (Loss) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Computation of basic and diluted net income (loss) per common share | |||||||||||
Net income (loss) applicable to common shares | ($180,878) | ($24,541) | $1,188 | $75,979 | $19,819 | ($202,096) | ($71,134) | $1,537 | ($128,252) | ($251,874) | $61,963 |
Weighted average number of common shares outstanding | 164,089 | 158,506 | 155,801 | ||||||||
Weighted average number of diluted common shares outstanding | 164,089 | 158,506 | 162,765 | ||||||||
Basic net income (loss) per share (usd per share) | ($1.10) | ($0.15) | $0.01 | $0.46 | $0.12 | ($1.29) | ($0.45) | $0.01 | ($0.78) | ($1.59) | $0.40 |
Diluted net income (loss) per share (usd per share) | ($1.10) | ($0.15) | $0.01 | $0.46 | $0.12 | ($1.29) | ($0.45) | $0.01 | ($0.78) | ($1.59) | $0.39 |
Stock Award One [Member] | |||||||||||
Computation of basic and diluted net income (loss) per common share | |||||||||||
Effect of dilutive stock awards (in shares) | 0 | 0 | 899 | ||||||||
Stock Award Two [Member] | |||||||||||
Computation of basic and diluted net income (loss) per common share | |||||||||||
Effect of dilutive stock awards (in shares) | 0 | 0 | 6,065 | ||||||||
Series D Preferred Stock [Member] | |||||||||||
Computation of basic and diluted net income (loss) per common share | |||||||||||
Income impact of assumed Series D Preferred Stock conversion | 0 | 0 | 1,352 | ||||||||
Net income after assumed Series D Preferred Stock conversion | ($128,252) | ($251,874) | $63,315 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Sources of income (loss) before income taxes | |||||||||||
Domestic | ($162,151) | ($221,185) | $34,633 | ||||||||
Foreign | 55,215 | 387 | 52,050 | ||||||||
Income (loss) before income taxes | -106,936 | -220,798 | 86,683 | ||||||||
Current: | |||||||||||
Federal | -678 | 4,113 | 873 | ||||||||
State and local | -42 | 485 | 192 | ||||||||
Foreign | 21,722 | 16,278 | 19,106 | ||||||||
Deferred: | |||||||||||
Federal | 1,004 | 4,012 | 3,822 | ||||||||
Foreign | -1,424 | 832 | -136 | ||||||||
Income tax expense | $6,321 | $8,345 | $653 | $5,263 | $6,270 | $56,954 | ($38,705) | $1,201 | $20,582 | $25,720 | $23,857 |
Income_Taxes_Details_1
Income Taxes (Details 1) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of the expected income tax expense on income (loss) before income taxes using the statutory federal income tax | |||||||||||
Expected income tax expense (benefit) at 35% | ($37,428) | ($77,279) | $30,339 | ||||||||
Foreign tax rate differential | -10,481 | -2,348 | -5,404 | ||||||||
Foreign tax differences | 6,444 | 16,808 | 4,897 | ||||||||
State and local taxes | -42 | 485 | 192 | ||||||||
Nondeductible expenses and other | -1,584 | -58 | 47 | ||||||||
Goodwill impairment | 9,444 | 0 | 0 | ||||||||
Deferred tax asset valuation allowance: | |||||||||||
Deferred tax asset valuation allowance on equity in losses of INOVA Geophysical | 17,644 | 7,871 | -104 | ||||||||
Deferred tax asset valuation allowance on operations | 36,585 | 80,241 | -6,110 | ||||||||
Income tax expense | $6,321 | $8,345 | $653 | $5,263 | $6,270 | $56,954 | ($38,705) | $1,201 | $20,582 | $25,720 | $23,857 |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred income tax assets: | ||
Accrued expenses | $6,495 | $5,898 |
Allowance accounts | 7,076 | 6,282 |
Total current deferred income tax asset | 13,571 | 12,180 |
Valuation allowance | -12,612 | -10,535 |
Net current deferred income tax asset | 959 | 1,645 |
Deferred income tax liabilities: | ||
Unbilled receivables | -6,865 | -13,516 |
Net current deferred income tax asset (liability) | -5,906 | -11,871 |
Deferred income tax assets: | ||
Net operating loss carryforward | 61,227 | 9,043 |
Capital loss carryforward | 18,385 | 19,657 |
Equity method investment | 58,820 | 41,176 |
Basis in identified intangibles | 9,263 | 9,950 |
Basis in research and development | 3,819 | 3,733 |
Contingency accrual | 43,319 | 67,664 |
Tax credit carryforwards and other | 11,515 | 8,893 |
Total non-current deferred income tax asset | 206,348 | 160,116 |
Valuation allowance | -192,652 | -140,500 |
Net non-current deferred income tax asset | 13,696 | 19,616 |
Deferred income tax liabilities: | ||
Basis in property, plant and equipment | -5,082 | -5,457 |
Net non-current deferred income tax asset (liability) | $8,614 | $14,159 |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Beginning balance | $2,219 | $1,834 | $1,375 |
Increases in unrecognized tax benefits - prior year positions | 0 | 0 | 0 |
Increases in unrecognized tax benefits - current year positions | 263 | 385 | 459 |
Decreases in unrecognized tax benefits - prior year position | -525 | 0 | 0 |
Ending balance | $1,957 | $2,219 | $1,834 |
Income_Taxes_Details_Textual
Income Taxes (Details Textual) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Operating Loss Carryforwards [Line Items] | ||||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% | |
Unrecognized tax benefits | $1,957,000 | $2,219,000 | $1,834,000 | $1,375,000 |
Outside book-over-tax basis difference in its foreign subsidiaries | 61,200,000 | |||
United States Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net deferred tax asset | 2,700,000 | |||
Net operating loss carry-forwards | 146,500,000 | |||
Capital Loss Carryforwards | 52,500,000 | |||
Foreign Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carry-forwards | $47,100,000 |
Other_Income_Expense_Details
Other Income (Expense) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
Nov. 30, 2014 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other Income and Expenses [Abstract] | ||||||||||||
Reduction of (accrual for) loss contingency related to legal proceedings (Footnote 17) | $69,557,000 | ($183,327,000) | ($10,000,000) | |||||||||
Gain on sale of a product line | 6,522,000 | 0 | 0 | |||||||||
Gain on sale of cost method investments | 5,463,000 | 3,591,000 | 0 | |||||||||
Gain on legal settlements | 0 | 0 | 30,895,000 | |||||||||
Other income (expense) | -1,682,000 | -2,794,000 | -3,771,000 | |||||||||
Total other income (expense) | 5,890,000 | -622,000 | 6,066,000 | 68,526,000 | -2,138,000 | -74,301,000 | -107,118,000 | 1,027,000 | 79,860,000 | -182,530,000 | 17,124,000 | |
Proceeds from sale of Source product line | 14,394,000 | 0 | 0 | |||||||||
Total proceeds from sale of cost method investments | 16,500,000 | |||||||||||
Proceeds from sale of cost method investments | $14,100,000 | $14,051,000 | $4,150,000 | $0 |
Details_of_Selected_Balance_Sh2
Details of Selected Balance Sheet Accounts - Accounts Receivable (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts receivable, principally trade | $121,957 | $156,670 |
Less allowance for doubtful accounts | -7,632 | -7,222 |
Accounts receivable, net | $114,325 | $149,448 |
Details_of_Selected_Balance_Sh3
Details of Selected Balance Sheet Accounts - Inventories (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of inventories: | |||
Raw materials and purchased subassemblies | $41,461 | $54,168 | |
Work-in-process | 18,221 | 2,297 | |
Finished goods | 21,284 | 33,263 | |
Reserve for excess and obsolete inventories | -29,804 | -32,555 | |
Total | 51,162 | 57,173 | |
Inventory obsolescence and excess inventory charges | $6,952 | $21,197 | $1,326 |
Details_of_Selected_Balance_Sh4
Details of Selected Balance Sheet Accounts - Property, Plant and Equipment (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment | $192,918,000 | $137,433,000 | |
Less accumulated depreciation | -123,078,000 | -90,749,000 | |
Property, plant, equipment and seismic rental equipment net | 69,840,000 | 46,684,000 | |
Write-down of marine equipment | 0 | 0 | 5,928,000 |
Depreciation and amortization under capital leases | 25,100,000 | 14,800,000 | 12,500,000 |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment | 25,343,000 | 23,292,000 | |
Machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment | 144,864,000 | 97,242,000 | |
Seismic rental equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment | 2,166,000 | 8,649,000 | |
Write-down of marine equipment | 5,900,000 | ||
Furniture and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment | 4,064,000 | 4,673,000 | |
Other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment | $16,481,000 | $3,577,000 |
Details_of_Selected_Balance_Sh5
Details of Selected Balance Sheet Accounts - Intangible Assets (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Summary of intangible assets, net | |||
Gross Amount | $43,584,000 | $46,893,000 | |
Accumulated Amortization | -36,796,000 | -35,646,000 | |
Net | 6,788,000 | 11,247,000 | |
Amortization expenses | 2,500,000 | 3,800,000 | 3,900,000 |
Customer relationships [Member] | |||
Summary of intangible assets, net | |||
Gross Amount | 40,234,000 | 42,593,000 | |
Accumulated Amortization | -33,446,000 | -31,880,000 | |
Net | 6,788,000 | 10,713,000 | |
Customer relationships [Member] | Solutions [Member] | |||
Summary of intangible assets, net | |||
Write-down of book value of certain relationships | 1,400,000 | ||
Intellectual property rights [Member] | |||
Summary of intangible assets, net | |||
Gross Amount | 3,350,000 | 4,300,000 | |
Accumulated Amortization | -3,350,000 | -3,766,000 | |
Net | $0 | $534,000 |
Details_of_Selected_Balance_Sh6
Details of Selected Balance Sheet Accounts - Intangible Assets (Details 1) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Estimated future amortization expense | |
2015 | $1,939 |
2016 | 1,675 |
2017 | 1,452 |
2018 | 1,225 |
2019 | $497 |
Details_of_Selected_Balance_Sh7
Details of Selected Balance Sheet Accounts - Accrued Expenses (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of accrued expenses | ||
Accrued multi-client data library acquisition costs | $6,458 | $25,140 |
Compensation, including compensation-related taxes and commissions | 33,386 | 29,727 |
Deferred income tax liability | 5,900 | 11,967 |
Income tax payable | 8,865 | 5,845 |
Other | 10,655 | 11,679 |
Total accrued expenses | $65,264 | $84,358 |
Details_of_Selected_Balance_Sh8
Details of Selected Balance Sheet Accounts - Other Long-term Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accrual for loss contingency related to legal proceedings (Note 17) | $123,770 | $193,327 |
Facility restructuring accrual | 4,667 | 4,837 |
Other | 15,367 | 12,438 |
Other long-term liabilities | $143,804 | $210,602 |
Goodwill_Details
Goodwill (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Goodwill [Line Items] | ||
Accrual for loss contingency related to legal proceedings | $123,770 | $193,327 |
Changes in the carrying amount of goodwill | ||
Goodwill, balance beginning | 55,876 | 55,349 |
Impact of foreign currency translation adjustments | -1,504 | 527 |
Reduction due to sale of Source product line | -5,100 | |
Impairment of goodwill | -21,884 | |
Goodwill, balance ending | 27,388 | 55,876 |
Solutions [Member] | ||
Changes in the carrying amount of goodwill | ||
Goodwill, balance beginning | 2,943 | 2,943 |
Impact of foreign currency translation adjustments | 0 | 0 |
Reduction due to sale of Source product line | 0 | |
Impairment of goodwill | 0 | |
Goodwill, balance ending | 2,943 | 2,943 |
Software [Member] | ||
Changes in the carrying amount of goodwill | ||
Goodwill, balance beginning | 25,949 | 25,422 |
Impact of foreign currency translation adjustments | -1,504 | 527 |
Reduction due to sale of Source product line | 0 | |
Impairment of goodwill | 0 | |
Goodwill, balance ending | 24,445 | 25,949 |
Systems [Member] | ||
Changes in the carrying amount of goodwill | ||
Goodwill, balance beginning | 26,984 | 26,984 |
Impact of foreign currency translation adjustments | 0 | 0 |
Reduction due to sale of Source product line | -5,100 | |
Impairment of goodwill | -21,884 | |
Goodwill, balance ending | $0 | $26,984 |
Stockholders_Equity_and_StockB2
Stockholders' Equity and Stock-Based Compensation (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Option Price per Share | ||||
Outstanding, minimum | $2.47 | $2.83 | $2.80 | $2.49 |
Outstanding, maximum | $16.39 | $16.39 | $16.39 | $16.39 |
Granted, minimum | $2.47 | $3.86 | $5.96 | |
Granted, maximum | $4.17 | $6.64 | $7.16 | |
Exercised, minimum | $3 | $2.80 | $2.49 | |
Exercised, maximum | $3 | $5.81 | $7.76 | |
Cancelled/forfeited, minimum | $3 | $3 | $2.49 | |
Cancelled/forfeited, maximum | $15.43 | $15.43 | $15.43 | |
Outstanding | ||||
Beginning balance | 8,258,500 | 7,928,350 | 6,791,300 | |
Granted | 1,736,400 | 1,788,300 | 1,544,000 | |
Exercised | -28,500 | -707,575 | -194,410 | |
Cancelled/forfeited, Outstanding | -980,375 | -750,575 | -212,540 | |
Cancelled/forfeited, Vested | -572,375 | -353,600 | -119,165 | |
Ending balance | 8,986,025 | 8,258,500 | 7,928,350 | 6,791,300 |
Vested | ||||
Vested, beginning balance | 4,585,475 | 4,591,238 | 3,844,538 | |
Vested | 1,391,251 | 1,055,412 | 1,060,275 | |
Exercised | -28,500 | -707,575 | -194,410 | |
Vested, ending balance | 5,375,851 | 4,585,475 | 4,591,238 | 3,844,538 |
Available for Grant | ||||
Beginning balance | 5,021,453 | 2,938,928 | 4,793,640 | |
Granted | 1,736,400 | 1,788,300 | 1,544,000 | |
Increase in shares authorized | 3,730,000 | |||
Plan Expiration | -66,783 | -79,250 | ||
Cancelled/forfeited | 216,800 | 702,325 | 127,125 | |
Restricted stock granted out of option plans | -727,550 | -714,950 | -667,000 | |
Restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans | 44,530 | 232,700 | 229,163 | |
Ending balance | 2,752,050 | 5,021,453 | 2,938,928 | 4,793,640 |
Stockholders_Equity_and_StockB3
Stockholders' Equity and Stock-Based Compensation (Details 1) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Summary of stock options outstanding | ||||
Option Price per Share, minimum | $2.47 | $2.83 | $2.80 | $2.49 |
Option Price per Share, maximum | $16.39 | $16.39 | $16.39 | $16.39 |
Outstanding | 8,986,025 | |||
Weighted Average Exercise Price of Outstanding Options | $6.30 | |||
Weighted Average Remaining Contract Life | 6 years 8 months 22 days | |||
Vested | 5,375,851 | |||
Weighted Average Exercise Price of Vested Options | $7.50 | |||
$2.47 - $4.58 [Member] | ||||
Summary of stock options outstanding | ||||
Option Price per Share, minimum | $2.47 | |||
Option Price per Share, maximum | $4.58 | |||
Outstanding | 3,682,125 | |||
Weighted Average Exercise Price of Outstanding Options | $3.80 | |||
Weighted Average Remaining Contract Life | 7 years 6 months 1 day | |||
Vested | 1,063,826 | |||
Weighted Average Exercise Price of Vested Options | $3.54 | |||
$4.79 - $7.19 [Member] | ||||
Summary of stock options outstanding | ||||
Option Price per Share, minimum | $4.79 | |||
Option Price per Share, maximum | $7.19 | |||
Outstanding | 3,683,700 | |||
Weighted Average Exercise Price of Outstanding Options | $6.23 | |||
Weighted Average Remaining Contract Life | 6 years 8 months 20 days | |||
Vested | 2,698,075 | |||
Weighted Average Exercise Price of Vested Options | $6.28 | |||
$7.31 - $13.29 [Member] | ||||
Summary of stock options outstanding | ||||
Option Price per Share, minimum | $7.31 | |||
Option Price per Share, maximum | $13.29 | |||
Outstanding | 838,250 | |||
Weighted Average Exercise Price of Outstanding Options | $9.26 | |||
Weighted Average Remaining Contract Life | 3 years 6 months 2 days | |||
Vested | 832,000 | |||
Weighted Average Exercise Price of Vested Options | $9.25 | |||
$14.03 - $16.39 [Member] | ||||
Summary of stock options outstanding | ||||
Option Price per Share, minimum | $14.03 | |||
Option Price per Share, maximum | $16.39 | |||
Outstanding | 781,950 | |||
Weighted Average Exercise Price of Outstanding Options | $15.25 | |||
Weighted Average Remaining Contract Life | 3 years 2 months 26 days | |||
Vested | 781,950 | |||
Weighted Average Exercise Price of Vested Options | $15.25 |
Stockholders_Equity_and_StockB4
Stockholders' Equity and Stock-Based Compensation (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Number of Shares | |||
Beginning balance | 8,258,500 | 7,928,350 | 6,791,300 |
Options granted | 1,736,400 | ||
Options exercised | -28,500 | -707,575 | -194,410 |
Options cancelled | -470,500 | ||
Options forfeited | -509,875 | ||
Ending balance | 8,986,025 | 8,258,500 | 7,928,350 |
Options exercisable and vested | 5,375,851 | ||
Weighted Average Exercise Price | |||
Beginning balance | $6.83 | ||
Options granted | $3.96 | ||
Options exercised | $3 | ||
Options cancelled | $4.94 | ||
Options forfeited | $8.27 | ||
Ending balance | $6.30 | $6.83 | |
Options exercisable and vested | $7.50 | ||
Additional Disclosures | |||
Weighted Average Grant Date Fair Value, Options granted | $2.41 | $2.52 | $3.54 |
Weighted Average Remaining Contractual Life, Beginning balance | 6 years 8 months 22 days | 6 years 9 months 24 days | |
Weighted Average Remaining Contractual Life, Ending balance | 6 years 8 months 22 days | 6 years 9 months 24 days | |
Weighted Average Remaining Contractual Life, Options exercisable and vested | 5 years 2 months 2 days | ||
Aggregate Intrinsic Value, Ending balance | $35 | ||
Aggregate Intrinsic Value, Options exercisable and vested | $0 |
Stockholders_Equity_and_StockB5
Stockholders' Equity and Stock-Based Compensation (Details 3) (Restricted stock and restricted stock unit [Member]) | 12 Months Ended |
Dec. 31, 2014 | |
Restricted stock and restricted stock unit [Member] | |
Status of the Company's restricted stock and restricted stock unit awards | |
Total nonvested, Beginning balance | 1,052,408 |
Granted | 727,550 |
Vested | -662,451 |
Forfeited | -120,814 |
Total nonvested, Ending balance | 996,693 |
Stockholders_Equity_and_StockB6
Stockholders' Equity and Stock-Based Compensation (Details 4) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Risk-free interest rates, minimum | 1.60% | 0.90% | 0.70% |
Risk-free interest rates, maximum | 1.70% | 1.80% | 1.00% |
Expected lives (in years) | 5 years 6 months | 5 years 6 months | 5 years 6 months |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility, minimum | 65.90% | 62.10% | 67.80% |
Expected volatility, maximum | 70.50% | 70.60% | 72.20% |
Stockholders_Equity_and_StockB7
Stockholders' Equity and Stock-Based Compensation Stockholders' Equity and Stock-Based Compensation (Details 5) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity [Abstract] | |||
Stock-based compensation expense | $8,707 | $7,476 | $6,598 |
Tax benefit related thereto | -2,908 | -2,469 | -2,056 |
Stock-based compensation expense, net of tax | $5,799 | $5,007 | $4,542 |
Stockholders_Equity_and_Stock_
Stockholders' Equity and Stock Based Compensation (Details Textual) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares outstanding options under the stock option plans | 8,986,025 | 8,258,500 | 7,928,350 | 6,791,300 |
Shares available for future grant and issuance | 2,752,050 | 5,021,453 | 2,938,928 | 4,793,640 |
Total intrinsic value of options exercised | $100,000 | $2,000,000 | $600,000 | |
Cash received from option exercises | 100,000 | 2,500,000 | 800,000 | |
Weighted average grant date fair value for stock option awards | $2.41 | $2.52 | $3.54 | |
Stockholders Equity and Stock Based Compensation (Textual) [Abstract] | ||||
Purchase price of common stock, percentage of price | 85.00% | |||
Stock options [Member] | ||||
Stockholders Equity and Stock Based Compensation (Textual) [Abstract] | ||||
Stock options, award vesting period in years | 4 years | |||
Stock options, term in years | 10 years | |||
Restricted stock and restricted stock unit [Member] | ||||
Stockholders Equity and Stock Based Compensation (Textual) [Abstract] | ||||
Stock options, award vesting period in years | 3 years | |||
Intrinsic value of restricted stock and restricted stock unit awards | 2,700,000 | |||
Weighted average grant date fair value for restricted stock and restricted stock unit awards | $3.98 | $4.08 | $6.05 | |
Total fair value of shares vested | 2,100,000 | 2,400,000 | 4,600,000 | |
Employee stock [Member] | ||||
Stockholders Equity and Stock Based Compensation (Textual) [Abstract] | ||||
Minimum payroll deductions at base compensation under employee stock purchase plan | 1.00% | |||
Maximum payroll deductions at base compensation under employee stock purchase plan | 10.00% | |||
Maximum purchase limit of shares for each participant per offering period | 500 | |||
Maximum purchase limit of shares for each participant annually | 1,000 | |||
Purchase price of the common stock | lesser of 85% of the closing price on the first day of the applicable offering period (or most recently preceding trading day) or 85% of the closing price on the last day of the offering period | |||
Company recorded compensation expense approximately | 200,000 | 200,000 | 300,000 | |
Number of shares of common stock authorized and available for issuance under employee stock purchase program | 928,924 | |||
Maximum purchase limit of shares on the basis of fair market value on offering date, for each participant in any calendar year | 10,000 | |||
Maximum number of shares of common stock purchased for each offering period | 100,000 | |||
Maximum number of shares of common stock purchased for each offering period annually | 200,000 | |||
Stock Appreciation Rights (SARs) [Member] | ||||
Stockholders Equity and Stock Based Compensation (Textual) [Abstract] | ||||
Company recorded compensation expense approximately | $100,000 | $100,000 | $100,000 | |
Percentage of fair market value of shares for calculation of exercise price SAR | not to be less than one hundred percent | |||
Maximum term of SAR | 10 years | |||
Number of vested and outstanding stock appreciation rights | 140,000 | |||
Weighted average exercise price of stock appreciation rights awards | $3 | |||
Number of individuals holding stock appreciation rights awards | 1 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information and Non-cash Activity (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Supplemental disclosure of cash flow information is as follows: | |||
Interest | $16,582 | $9,576 | $4,625 |
Income taxes | 16,124 | 15,872 | 18,146 |
Non-cash items from investing and financing activities is as follows: | |||
Purchase of computer equipment financed through capital leases | 12,153 | 6,455 | 4,647 |
Leasehold improvement paid by landlord | 0 | 5,000 | 0 |
Conversion of the Company's investment in a convertible note to equity | 3,151 | 6,765 | 0 |
Transfer of inventory to property, plant and equipment | 10,149 | 1,422 | 6,737 |
Purchases of property, plant, and equipment and seismic rental equipment financed through accounts payable | 472 | 909 | 0 |
Sale of rental equipment financed with a note receivables | $0 | $3,636 | $0 |
Operating_Leases_Details
Operating Leases (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Future rental commitments over the next five years under non-cancelable operating leases | |
2015 | $29,604 |
2016 | 11,428 |
2017 | 9,519 |
2018 | 8,808 |
2019 | 8,730 |
Total | $68,089 |
Operating_Leases_Details_Textu
Operating Leases (Details Textual) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Leases, Operating [Abstract] | |||
Operating leases, rent expense | $12,900,000 | $12,400,000 | $14,400,000 |
Operating Leased Assets [Line Items] | |||
Future minimum payments due, 2015 | 29,604,000 | ||
Future minimum payments due, 2016 | 11,428,000 | ||
Vessel leases [Member] | |||
Operating Leased Assets [Line Items] | |||
Future minimum payments due, 2015 | 19,900,000 | ||
Future minimum payments due, 2016 | $1,700,000 |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments - Narrative (Details) (USD $) | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Post-conversion equity ownership percentage in investee | 16.00% | |||
Total proceeds from sale of cost method investments | $16,500,000 | |||
Proceeds from sale of cost method investments | 14,100,000 | 14,051,000 | 4,150,000 | 0 |
Gain on sale of cost method investments | 5,500,000 | |||
Carrying value of long-term debt and lease obligations | 190,594,000 | 220,152,000 | ||
Fair value of long-term debt | 162,600,000 | 190,400,000 | ||
Credit Facility Receivable [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Amount drawn on credit facility by investee | $4,000,000 |
Benefit_Plans_Details_Textual
Benefit Plans (Details Textual) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Compensation and Retirement Disclosure [Abstract] | |||
Maximum contribution by employees as a percentage of their compensation to defined benefit plan | up to 60% of their compensation | ||
Maximum percentage of employee contributions | 60.00% | ||
Percentage of contribution made to defined benefit plan | 50.00% | ||
Component percent of first compensation contributed to defined benefit plan | 6.00% | ||
Company contributions to benefit plans | $1.80 | $1.70 | $1.40 |
Legal_Matters_Details
Legal Matters (Details) (WesternGeco [Member], USD $) | 1 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2009 | Aug. 31, 2012 | Apr. 30, 2014 | Oct. 31, 2013 | Dec. 31, 2014 | 31-May-14 |
Patent | ||||||
Legal Matters (Textual) [Abstract] | ||||||
Number of patent apparatus claims contained | 4 | |||||
Pending Litigation [Member] | ||||||
Legal Matters (Textual) [Abstract] | ||||||
Total damages awarded | $105.90 | |||||
Pending Litigation [Member] | Lost Profits [Member] | ||||||
Legal Matters (Textual) [Abstract] | ||||||
Total damages awarded | 93.4 | |||||
Pending Litigation [Member] | Lost Royalties [Member] | ||||||
Legal Matters (Textual) [Abstract] | ||||||
Total damages awarded | 12.5 | |||||
Settled Litigation [Member] | Lost Profits [Member] | ||||||
Legal Matters (Textual) [Abstract] | ||||||
Total damages awarded | 9.4 | 73.1 | ||||
Reduction in damages awarded in case | 3 | |||||
Accrual for loss contingency related to legal proceedings | 123.8 | |||||
Pending Litigation, Post Appeal [Member] | ||||||
Legal Matters (Textual) [Abstract] | ||||||
Maximum amount of appeal bond | 120 | |||||
Annual fee to maintain appeal bond | $2 |
Selected_Quarterly_Information2
Selected Quarterly Information (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Summary of selected quarterly information | |||||||||||
Service revenues | $112,552 | $71,923 | $89,767 | $110,696 | $167,086 | $44,679 | $89,603 | $89,949 | $384,938 | $391,317 | $354,583 |
Product revenues | 24,288 | 34,617 | 31,713 | 34,002 | 51,591 | 35,159 | 31,312 | 39,788 | 124,620 | 157,850 | 171,734 |
Total net revenues | 136,840 | 106,540 | 121,480 | 144,698 | 218,677 | 79,838 | 120,915 | 129,737 | 509,558 | 549,167 | 526,317 |
Gross profit (loss) | -62,082 | 29,223 | 38,228 | 56,854 | 102,842 | -15,104 | 36,618 | 34,957 | 62,223 | 159,313 | 215,801 |
Income (loss) from operations | -136,036 | -5,349 | 3,785 | 19,671 | 64,231 | -56,528 | 6,770 | 1,923 | -117,929 | 16,396 | 74,527 |
Interest expense, net | -4,603 | -5,048 | -4,934 | -4,797 | -4,241 | -4,281 | -2,756 | -1,066 | -19,382 | -12,344 | -5,265 |
Equity in earnings (losses) of investments | -40,458 | -5,558 | -1,781 | -1,688 | -49,485 | -42,320 | 297 | ||||
Other income (expense) | 5,890 | -622 | 6,066 | 68,526 | -2,138 | -74,301 | -107,118 | 1,027 | 79,860 | -182,530 | 17,124 |
Income tax expense | 6,321 | 8,345 | 653 | 5,263 | 6,270 | 56,954 | -38,705 | 1,201 | 20,582 | 25,720 | 23,857 |
Net (income) loss attributable to noncontrolling interests | 650 | 381 | -1,295 | -470 | 143 | 498 | -59 | 76 | -734 | 658 | 489 |
Preferred stock dividends | 0 | 5,338 | 338 | 338 | 0 | 1,014 | 1,352 | ||||
Net income (loss) applicable to common shares | ($180,878) | ($24,541) | $1,188 | $75,979 | $19,819 | ($202,096) | ($71,134) | $1,537 | ($128,252) | ($251,874) | $61,963 |
Net income per share: | |||||||||||
Basic (usd per share) | ($1.10) | ($0.15) | $0.01 | $0.46 | $0.12 | ($1.29) | ($0.45) | $0.01 | ($0.78) | ($1.59) | $0.40 |
Diluted (usd per share) | ($1.10) | ($0.15) | $0.01 | $0.46 | $0.12 | ($1.29) | ($0.45) | $0.01 | ($0.78) | ($1.59) | $0.39 |
Certain_Relationships_and_Rela1
Certain Relationships and Related Party Transactions (Details Textual) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 31, 2013 |
Related Party Transaction [Line Items] | ||||
Receivables due from BGP | 1.1 | $1.50 | ||
Owed to related party for unpaid services | 1.3 | |||
INOVA Geophysical [Member] | ||||
Related Party Transaction [Line Items] | ||||
Basis spread on variable rate | 6.50% | |||
Manufacturing Facility [Member] | ||||
Related Party Transaction [Line Items] | ||||
Payment for lease of commercial property | 2.3 | |||
Majority Shareholder [Member] | ||||
Related Party Transaction [Line Items] | ||||
Related party transaction, revenues from transactions with related party | 6.5 | 8 | 13.7 | |
Company's outstanding common stock owned by BGP | 14.50% | |||
Board of Directors Chairman [Member] | ||||
Related Party Transaction [Line Items] | ||||
Company's outstanding common stock owned by BGP | 6.40% | |||
Payment for lease of commercial property | 2.4 | |||
Board of Directors Chairman [Member] | Rent and other pass through third party facilities charges [Member] | ||||
Related Party Transaction [Line Items] | ||||
Per month payment to third-party and lease costs incurred by the administrative support of INOVA Geophysical | 4.2 | 4.1 | ||
Board of Directors Chairman [Member] | Other services [Member] | ||||
Related Party Transaction [Line Items] | ||||
Payment for lease of commercial property | 0.1 | |||
INOVA Geophysical [Member] | ||||
Related Party Transaction [Line Items] | ||||
Value of receivables due from related party | 4 | 10 | ||
Proceeds from related party debt | 6 |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information - Narrative (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Condensed Financial Statements, Captions [Line Items] | ||
Carrying value of long-term debt and lease obligations | $190,594 | $220,152 |
Senior secured second-priority notes [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Carrying value of long-term debt and lease obligations | $175,000 | $175,000 |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Information - Condensed Balance Sheet (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $173,608 | $148,056 | $60,971 | $42,402 |
Accounts receivable, net | 114,325 | 149,448 | ||
Unbilled receivables | 22,599 | 49,468 | ||
Inventories | 51,162 | 57,173 | ||
Prepaid expenses and other current assets | 13,662 | 24,772 | ||
Total current assets | 375,356 | 428,917 | ||
Deferred income tax asset | 8,604 | 14,650 | ||
Property, plant, equipment and seismic rental equipment, net | 69,840 | 46,684 | ||
Multi-client data library, net | 118,669 | 238,784 | ||
Equity method investments | 0 | 53,865 | ||
Investment in subsidiaries | 0 | 0 | ||
Goodwill | 27,388 | 55,876 | 55,349 | |
Intangible assets, net | 6,788 | 11,247 | ||
Intercompany receivables | 0 | 0 | ||
Other assets | 10,612 | 14,648 | ||
Total assets | 617,257 | 864,671 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 7,649 | 5,906 | ||
Accounts payable | 36,863 | 22,654 | ||
Accrued expenses | 65,264 | 84,358 | ||
Accrued multi-client data library royalties | 35,219 | 46,460 | ||
Deferred revenue | 8,262 | 20,682 | ||
Total current liabilities | 153,257 | 180,060 | ||
Long-term debt, net of current maturities | 182,945 | 214,246 | ||
Intercompany payables | 0 | 0 | ||
Other long-term liabilities | 143,804 | 210,602 | ||
Total liabilities | 480,006 | 604,908 | ||
Redeemable noncontrolling interest | 1,539 | 1,878 | ||
Equity: | ||||
Common stock | 1,645 | 1,637 | ||
Additional paid-in capital | 887,749 | 879,969 | ||
Accumulated earnings (deficit) | -734,409 | -606,157 | ||
Accumulated other comprehensive income (loss) | -12,807 | -11,138 | ||
Due from ION Geophysical Corporation | 0 | 0 | ||
Treasury stock | -6,565 | -6,565 | ||
Total stockholders’ equity | 135,613 | 257,746 | ||
Noncontrolling interests | 99 | 139 | ||
Total equity | 135,712 | 257,885 | 499,019 | 425,812 |
Total liabilities and equity | 617,257 | 864,671 | ||
Reportable Legal Entities [Member] | ION Geophysical Corporation [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 109,514 | 124,701 | 30,343 | 21,397 |
Accounts receivable, net | 123 | 1,874 | ||
Unbilled receivables | 0 | 0 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other current assets | 6,692 | 12,888 | ||
Total current assets | 116,329 | 139,463 | ||
Deferred income tax asset | -7,852 | 6,513 | ||
Property, plant, equipment and seismic rental equipment, net | 6,412 | 6,440 | ||
Multi-client data library, net | 0 | 0 | ||
Equity method investments | 51,065 | |||
Investment in subsidiaries | 675,499 | 699,695 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Intercompany receivables | 29,979 | 8,313 | ||
Other assets | 10,191 | 14,315 | ||
Total assets | 830,558 | 925,804 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 4,308 | 3,515 | ||
Accrued expenses | 3,904 | 16,652 | ||
Accrued multi-client data library royalties | 0 | 0 | ||
Deferred revenue | 0 | 0 | ||
Total current liabilities | 8,212 | 20,167 | ||
Long-term debt, net of current maturities | 175,000 | 210,000 | ||
Intercompany payables | 509,124 | 426,134 | ||
Other long-term liabilities | 2,609 | 11,757 | ||
Total liabilities | 694,945 | 668,058 | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Equity: | ||||
Common stock | 1,645 | 1,637 | ||
Additional paid-in capital | 887,749 | 879,969 | ||
Accumulated earnings (deficit) | -734,409 | -606,157 | ||
Accumulated other comprehensive income (loss) | -12,807 | -11,138 | ||
Due from ION Geophysical Corporation | 0 | 0 | ||
Treasury stock | -6,565 | -6,565 | ||
Total stockholders’ equity | 135,613 | 257,746 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 135,613 | 257,746 | ||
Total liabilities and equity | 830,558 | 925,804 | ||
Reportable Legal Entities [Member] | The Guarantors [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 49,892 | 99,547 | ||
Unbilled receivables | 18,548 | 33,490 | ||
Inventories | 4,013 | 6,595 | ||
Prepaid expenses and other current assets | 2,697 | 5,030 | ||
Total current assets | 75,150 | 144,662 | ||
Deferred income tax asset | 6,675 | 6,960 | ||
Property, plant, equipment and seismic rental equipment, net | 33,065 | 29,845 | ||
Multi-client data library, net | 96,423 | 212,572 | ||
Equity method investments | 0 | |||
Investment in subsidiaries | 278,294 | 248,482 | ||
Goodwill | 0 | 26,984 | ||
Intangible assets, net | 6,254 | 8,246 | ||
Intercompany receivables | 0 | 13,419 | ||
Other assets | 147 | 56 | ||
Total assets | 496,008 | 691,226 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 6,965 | 4,716 | ||
Accounts payable | 12,028 | 11,741 | ||
Accrued expenses | 34,738 | 54,250 | ||
Accrued multi-client data library royalties | 34,624 | 45,921 | ||
Deferred revenue | 5,263 | 16,387 | ||
Total current liabilities | 93,618 | 133,015 | ||
Long-term debt, net of current maturities | 7,839 | 3,655 | ||
Intercompany payables | 8,892 | 0 | ||
Other long-term liabilities | 130,985 | 214,211 | ||
Total liabilities | 241,334 | 350,881 | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Equity: | ||||
Common stock | 290,460 | 290,460 | ||
Additional paid-in capital | 180,700 | 180,700 | ||
Accumulated earnings (deficit) | 208,846 | 232,186 | ||
Accumulated other comprehensive income (loss) | 6,229 | 6,218 | ||
Due from ION Geophysical Corporation | -431,561 | -369,219 | ||
Treasury stock | 0 | 0 | ||
Total stockholders’ equity | 254,674 | 340,345 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 254,674 | 340,345 | ||
Total liabilities and equity | 496,008 | 691,226 | ||
Reportable Legal Entities [Member] | All Other Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 64,094 | 23,355 | 30,628 | 21,005 |
Accounts receivable, net | 64,310 | 48,027 | ||
Unbilled receivables | 4,051 | 15,978 | ||
Inventories | 47,149 | 50,578 | ||
Prepaid expenses and other current assets | 8,769 | 7,438 | ||
Total current assets | 188,373 | 145,376 | ||
Deferred income tax asset | 749 | 489 | ||
Property, plant, equipment and seismic rental equipment, net | 30,363 | 10,399 | ||
Multi-client data library, net | 22,246 | 26,212 | ||
Equity method investments | 2,800 | |||
Investment in subsidiaries | 0 | 0 | ||
Goodwill | 27,388 | 28,892 | ||
Intangible assets, net | 534 | 3,001 | ||
Intercompany receivables | 0 | 0 | ||
Other assets | 274 | 24,262 | ||
Total assets | 269,927 | 241,431 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 684 | 1,190 | ||
Accounts payable | 20,527 | 7,364 | ||
Accrued expenses | 21,807 | 13,392 | ||
Accrued multi-client data library royalties | 595 | 539 | ||
Deferred revenue | 2,999 | 4,295 | ||
Total current liabilities | 46,612 | 26,780 | ||
Long-term debt, net of current maturities | 106 | 591 | ||
Intercompany payables | 21,087 | 21,732 | ||
Other long-term liabilities | 10,489 | 8,637 | ||
Total liabilities | 78,294 | 57,740 | ||
Redeemable noncontrolling interest | 1,539 | 1,878 | ||
Equity: | ||||
Common stock | 19,138 | 19,138 | ||
Additional paid-in capital | 234,234 | 235,381 | ||
Accumulated earnings (deficit) | 26,981 | -4,010 | ||
Accumulated other comprehensive income (loss) | -12,795 | -11,920 | ||
Due from ION Geophysical Corporation | -77,563 | -56,915 | ||
Treasury stock | 0 | 0 | ||
Total stockholders’ equity | 189,995 | 181,674 | ||
Noncontrolling interests | 99 | 139 | ||
Total equity | 190,094 | 181,813 | ||
Total liabilities and equity | 269,927 | 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 | -4,496 | -584 | ||
Total current assets | -4,496 | -584 | ||
Deferred income tax asset | 9,032 | 688 | ||
Property, plant, equipment and seismic rental equipment, net | 0 | 0 | ||
Multi-client data library, net | 0 | 0 | ||
Equity method investments | 0 | |||
Investment in subsidiaries | -953,793 | -948,177 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Intercompany receivables | -29,979 | -21,732 | ||
Other assets | 0 | -23,985 | ||
Total assets | -979,236 | -993,790 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 34 | ||
Accrued expenses | 4,815 | 64 | ||
Accrued multi-client data library royalties | 0 | 0 | ||
Deferred revenue | 0 | 0 | ||
Total current liabilities | 4,815 | 98 | ||
Long-term debt, net of current maturities | 0 | 0 | ||
Intercompany payables | -539,103 | -447,866 | ||
Other long-term liabilities | -279 | -24,003 | ||
Total liabilities | -534,567 | -471,771 | ||
Redeemable noncontrolling interest | 0 | 0 | ||
Equity: | ||||
Common stock | -309,598 | -309,598 | ||
Additional paid-in capital | -414,934 | -416,081 | ||
Accumulated earnings (deficit) | -235,827 | -228,176 | ||
Accumulated other comprehensive income (loss) | 6,566 | 5,702 | ||
Due from ION Geophysical Corporation | 509,124 | 426,134 | ||
Treasury stock | 0 | 0 | ||
Total stockholders’ equity | -444,669 | -522,019 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | -444,669 | -522,019 | ||
Total liabilities and equity | ($979,236) | ($993,790) |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Information - Condensed Income Statement (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net revenues | $136,840 | $106,540 | $121,480 | $144,698 | $218,677 | $79,838 | $120,915 | $129,737 | $509,558 | $549,167 | $526,317 |
Cost of goods sold | 447,335 | 389,854 | 310,516 | ||||||||
Gross profit | -62,082 | 29,223 | 38,228 | 56,854 | 102,842 | -15,104 | 36,618 | 34,957 | 62,223 | 159,313 | 215,801 |
Total operating expenses | 180,152 | 142,917 | 141,274 | ||||||||
Income (loss) from operations | -136,036 | -5,349 | 3,785 | 19,671 | 64,231 | -56,528 | 6,770 | 1,923 | -117,929 | 16,396 | 74,527 |
Interest expense, net | -4,603 | -5,048 | -4,934 | -4,797 | -4,241 | -4,281 | -2,756 | -1,066 | -19,382 | -12,344 | -5,265 |
Intercompany interest, net | 0 | 0 | 0 | ||||||||
Equity in earnings (losses) of investments | -40,458 | -5,558 | -1,781 | -1,688 | -49,485 | -42,320 | 297 | ||||
Other income | 5,890 | -622 | 6,066 | 68,526 | -2,138 | -74,301 | -107,118 | 1,027 | 79,860 | -182,530 | 17,124 |
Income (loss) before income taxes | -106,936 | -220,798 | 86,683 | ||||||||
Income tax expense | 6,321 | 8,345 | 653 | 5,263 | 6,270 | 56,954 | -38,705 | 1,201 | 20,582 | 25,720 | 23,857 |
Net income (loss) | -127,518 | -246,518 | 62,826 | ||||||||
Net (income) loss attributable to noncontrolling interests | 650 | 381 | -1,295 | -470 | 143 | 498 | -59 | 76 | -734 | 658 | 489 |
Net income (loss) attributable to ION | -128,252 | -245,860 | 63,315 | ||||||||
Payment of preferred dividends and conversion payment | 6,014 | ||||||||||
Preferred stock dividends | 0 | 5,338 | 338 | 338 | 0 | 1,014 | 1,352 | ||||
Net income (loss) applicable to common shares | -180,878 | -24,541 | 1,188 | 75,979 | 19,819 | -202,096 | -71,134 | 1,537 | -128,252 | -251,874 | 61,963 |
Comprehensive net income (loss) | -129,187 | -245,770 | 67,133 | ||||||||
Comprehensive (income) loss attributable to noncontrolling interest | -734 | 658 | 489 | ||||||||
Comprehensive net income (loss) attributable to ION | -129,921 | -245,112 | 67,622 | ||||||||
Reportable Legal Entities [Member] | ION Geophysical Corporation [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net revenues | 0 | 0 | 0 | ||||||||
Cost of goods sold | 0 | 0 | 0 | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Total operating expenses | 38,961 | 35,054 | 35,982 | ||||||||
Income (loss) from operations | -38,961 | -35,054 | -35,982 | ||||||||
Interest expense, net | -18,537 | -12,102 | -5,137 | ||||||||
Intercompany interest, net | -340 | 411 | 232 | ||||||||
Equity in earnings (losses) of investments | -74,615 | -192,220 | 58,162 | ||||||||
Other income | 4,536 | 12,166 | 29,447 | ||||||||
Income (loss) before income taxes | -127,917 | -226,799 | 46,722 | ||||||||
Income tax expense | 335 | 19,061 | -16,593 | ||||||||
Net income (loss) | -128,252 | -245,860 | 63,315 | ||||||||
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to ION | -245,860 | 63,315 | |||||||||
Payment of preferred dividends and conversion payment | 6,014 | ||||||||||
Preferred stock dividends | 1,352 | ||||||||||
Net income (loss) applicable to common shares | -128,252 | -251,874 | 61,963 | ||||||||
Comprehensive net income (loss) | -129,921 | -245,112 | 67,622 | ||||||||
Comprehensive (income) loss attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Comprehensive net income (loss) attributable to ION | -129,921 | -245,112 | 67,622 | ||||||||
Reportable Legal Entities [Member] | The Guarantors [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net revenues | 221,008 | 337,570 | 311,758 | ||||||||
Cost of goods sold | 262,829 | 240,704 | 192,639 | ||||||||
Gross profit | -41,821 | 96,866 | 119,119 | ||||||||
Total operating expenses | 88,481 | 62,028 | 61,315 | ||||||||
Income (loss) from operations | -130,302 | 34,838 | 57,804 | ||||||||
Interest expense, net | -245 | -49 | 198 | ||||||||
Intercompany interest, net | 2,146 | -1,374 | -629 | ||||||||
Equity in earnings (losses) of investments | 32,043 | -19,755 | 33,958 | ||||||||
Other income | 74,295 | -193,289 | -10,334 | ||||||||
Income (loss) before income taxes | -22,063 | -179,629 | 80,997 | ||||||||
Income tax expense | 1,277 | -10,883 | 21,771 | ||||||||
Net income (loss) | -23,340 | -168,746 | 59,226 | ||||||||
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to ION | -168,746 | 59,226 | |||||||||
Payment of preferred dividends and conversion payment | 0 | ||||||||||
Preferred stock dividends | 0 | ||||||||||
Net income (loss) applicable to common shares | -23,340 | -168,746 | 59,226 | ||||||||
Comprehensive net income (loss) | -23,329 | -168,167 | 62,085 | ||||||||
Comprehensive (income) loss attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Comprehensive net income (loss) attributable to ION | -23,329 | -168,167 | 62,085 | ||||||||
Reportable Legal Entities [Member] | All Other Subsidiaries [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net revenues | 291,302 | 213,826 | 214,939 | ||||||||
Cost of goods sold | 187,258 | 151,379 | 118,257 | ||||||||
Gross profit | 104,044 | 62,447 | 96,682 | ||||||||
Total operating expenses | 52,710 | 45,835 | 43,977 | ||||||||
Income (loss) from operations | 51,334 | 16,612 | 52,705 | ||||||||
Interest expense, net | -600 | -193 | -326 | ||||||||
Intercompany interest, net | -1,806 | 963 | 397 | ||||||||
Equity in earnings (losses) of investments | 738 | -19,833 | 0 | ||||||||
Other income | 1,029 | -1,407 | -1,989 | ||||||||
Income (loss) before income taxes | 50,695 | -3,858 | 50,787 | ||||||||
Income tax expense | 18,970 | 17,542 | 18,679 | ||||||||
Net income (loss) | 31,725 | -21,400 | 32,108 | ||||||||
Net (income) loss attributable to noncontrolling interests | -734 | 658 | 489 | ||||||||
Net income (loss) attributable to ION | -20,742 | 32,597 | |||||||||
Payment of preferred dividends and conversion payment | 0 | ||||||||||
Preferred stock dividends | 0 | ||||||||||
Net income (loss) applicable to common shares | 30,991 | -20,742 | 32,597 | ||||||||
Comprehensive net income (loss) | 30,850 | -20,779 | 34,967 | ||||||||
Comprehensive (income) loss attributable to noncontrolling interest | -734 | 658 | 489 | ||||||||
Comprehensive net income (loss) attributable to ION | 30,116 | -20,121 | 35,456 | ||||||||
Consolidation, Eliminations [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net revenues | -2,752 | -2,229 | -380 | ||||||||
Cost of goods sold | -2,752 | -2,229 | -380 | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Total operating expenses | 0 | 0 | 0 | ||||||||
Income (loss) from operations | 0 | 0 | 0 | ||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||
Intercompany interest, net | 0 | 0 | 0 | ||||||||
Equity in earnings (losses) of investments | -7,651 | 189,488 | -91,823 | ||||||||
Other income | 0 | 0 | 0 | ||||||||
Income (loss) before income taxes | -7,651 | 189,488 | -91,823 | ||||||||
Income tax expense | 0 | 0 | 0 | ||||||||
Net income (loss) | -7,651 | 189,488 | -91,823 | ||||||||
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income (loss) attributable to ION | 189,488 | -91,823 | |||||||||
Payment of preferred dividends and conversion payment | 0 | ||||||||||
Preferred stock dividends | 0 | ||||||||||
Net income (loss) applicable to common shares | -7,651 | 189,488 | -91,823 | ||||||||
Comprehensive net income (loss) | -6,787 | 188,288 | -97,541 | ||||||||
Comprehensive (income) loss attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Comprehensive net income (loss) attributable to ION | ($6,787) | $188,288 | ($97,541) |
Condensed_Consolidating_Financ5
Condensed Consolidating Financial Information - Condensed Cash Flow Statement (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net cash provided by operating activities | $129,780 | $147,587 | $169,081 |
Cash flows from investing activities: | |||
Investment in multi-client data library | -67,785 | -114,582 | -145,627 |
Purchase of property, plant, equipment and seismic rental equipment | -8,264 | -16,914 | -16,650 |
Repayment of advances by INOVA Geophysical | 1,000 | -5,000 | 0 |
Net investment in and advances to OceanGeo B.V. prior to its consolidation | -3,074 | -24,755 | 0 |
Net proceeds from sale of Source product line | 14,394 | 0 | 0 |
Proceeds from sale of cost method investments | 14,051 | 4,150 | 0 |
Maturity of short-term investments | 0 | 0 | 20,000 |
Investment in convertible notes | 0 | -2,000 | -2,000 |
Capital contribution to affiliate | 0 | ||
Other investing activities | 928 | 128 | 0 |
Net used in investing activities | -48,750 | -158,973 | -144,277 |
Cash flows from financing activities: | |||
Proceeds from issuance of notes | 0 | 175,000 | 0 |
Payments under revolving line of credit | -50,000 | -97,250 | -51,000 |
Borrowings under revolving line of credit | 15,000 | 35,000 | 148,250 |
Payments on notes payable and long-term debt | -12,998 | -4,361 | -101,702 |
Cost associated with issuance of debt | -2,194 | -6,773 | 0 |
Capital contribution from affiliate | 0 | ||
Intercompany lending | 0 | 0 | 0 |
Acquisition of non-controlling interest | -6,000 | 0 | 0 |
Payment of preferred dividends | -6,014 | -1,352 | |
Proceeds from employee stock purchases and exercise of stock options | 577 | 2,527 | 807 |
Other financing activities | -359 | 573 | -1,457 |
Net cash provided by (used in) financing activities | -55,974 | 98,702 | -6,454 |
Effect of change in foreign currency exchange rates on cash and cash equivalents | 496 | -231 | 219 |
Net increase in cash and cash equivalents | 25,552 | 87,085 | 18,569 |
Cash and cash equivalents at beginning of period | 148,056 | 60,971 | 42,402 |
Cash and cash equivalents at end of period | 173,608 | 148,056 | 60,971 |
Reportable Legal Entities [Member] | ION Geophysical Corporation [Member] | |||
Cash flows from operating activities: | |||
Net cash provided by operating activities | -53,925 | -50,731 | 19,362 |
Cash flows from investing activities: | |||
Investment in multi-client data library | 0 | 0 | 0 |
Purchase of property, plant, equipment and seismic rental equipment | -1,240 | -2,075 | -2,485 |
Repayment of advances by INOVA Geophysical | 1,000 | -5,000 | |
Net investment in and advances to OceanGeo B.V. prior to its consolidation | 0 | 0 | |
Net proceeds from sale of Source product line | 0 | ||
Proceeds from sale of cost method investments | 14,051 | 4,150 | |
Maturity of short-term investments | 20,000 | ||
Investment in convertible notes | -2,000 | -2,000 | |
Capital contribution to affiliate | -5,695 | ||
Other investing activities | 579 | 0 | |
Net used in investing activities | 14,390 | -10,620 | 15,515 |
Cash flows from financing activities: | |||
Proceeds from issuance of notes | 175,000 | ||
Payments under revolving line of credit | -50,000 | -97,250 | -51,000 |
Borrowings under revolving line of credit | 15,000 | 35,000 | 148,250 |
Payments on notes payable and long-term debt | 0 | 0 | -99,270 |
Cost associated with issuance of debt | -2,194 | -6,773 | |
Capital contribution from affiliate | 0 | ||
Intercompany lending | 61,324 | 52,646 | -21,699 |
Acquisition of non-controlling interest | 0 | ||
Payment of preferred dividends | -6,014 | -1,352 | |
Proceeds from employee stock purchases and exercise of stock options | 577 | 2,527 | 807 |
Other financing activities | -359 | 573 | -1,669 |
Net cash provided by (used in) financing activities | 24,348 | 155,709 | -25,933 |
Effect of change in foreign currency exchange rates on cash and cash equivalents | 0 | 0 | 2 |
Net increase in cash and cash equivalents | -15,187 | 94,358 | 8,946 |
Cash and cash equivalents at beginning of period | 124,701 | 30,343 | 21,397 |
Cash and cash equivalents at end of period | 109,514 | 124,701 | 30,343 |
Reportable Legal Entities [Member] | The Guarantors [Member] | |||
Cash flows from operating activities: | |||
Net cash provided by operating activities | 107,590 | 166,838 | 105,768 |
Cash flows from investing activities: | |||
Investment in multi-client data library | -67,552 | -111,689 | -121,424 |
Purchase of property, plant, equipment and seismic rental equipment | -4,530 | -10,171 | -9,947 |
Repayment of advances by INOVA Geophysical | 0 | 0 | |
Net investment in and advances to OceanGeo B.V. prior to its consolidation | 0 | 0 | |
Net proceeds from sale of Source product line | 9,881 | ||
Proceeds from sale of cost method investments | 0 | 0 | |
Maturity of short-term investments | 0 | ||
Investment in convertible notes | 0 | 0 | |
Capital contribution to affiliate | -7,897 | ||
Other investing activities | 26 | 128 | |
Net used in investing activities | -62,175 | -129,629 | -131,371 |
Cash flows from financing activities: | |||
Proceeds from issuance of notes | 0 | ||
Payments under revolving line of credit | 0 | 0 | 0 |
Borrowings under revolving line of credit | 0 | 0 | 0 |
Payments on notes payable and long-term debt | -5,384 | -3,249 | -1,626 |
Cost associated with issuance of debt | 0 | 0 | |
Capital contribution from affiliate | 5,695 | ||
Intercompany lending | -40,031 | -39,655 | 27,229 |
Acquisition of non-controlling interest | 0 | ||
Payment of preferred dividends | 0 | 0 | |
Proceeds from employee stock purchases and exercise of stock options | 0 | 0 | 0 |
Other financing activities | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | -45,415 | -37,209 | 25,603 |
Effect of change in foreign currency exchange rates on cash and cash equivalents | 0 | 0 | 0 |
Net increase in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 | 0 |
Reportable Legal Entities [Member] | All Other Subsidiaries [Member] | |||
Cash flows from operating activities: | |||
Net cash provided by operating activities | 76,115 | 31,480 | 43,951 |
Cash flows from investing activities: | |||
Investment in multi-client data library | -233 | -2,893 | -24,203 |
Purchase of property, plant, equipment and seismic rental equipment | -2,494 | -4,668 | -4,218 |
Repayment of advances by INOVA Geophysical | 0 | 0 | |
Net investment in and advances to OceanGeo B.V. prior to its consolidation | -3,074 | -24,755 | |
Net proceeds from sale of Source product line | 4,513 | ||
Proceeds from sale of cost method investments | 0 | 0 | |
Maturity of short-term investments | 0 | ||
Investment in convertible notes | 0 | 0 | |
Capital contribution to affiliate | 0 | ||
Other investing activities | 323 | 0 | |
Net used in investing activities | -965 | -32,316 | -28,421 |
Cash flows from financing activities: | |||
Proceeds from issuance of notes | 0 | ||
Payments under revolving line of credit | 0 | 0 | 0 |
Borrowings under revolving line of credit | 0 | 0 | 0 |
Payments on notes payable and long-term debt | -7,614 | -1,112 | -806 |
Cost associated with issuance of debt | 0 | 0 | |
Capital contribution from affiliate | 7,897 | ||
Intercompany lending | -21,293 | -12,991 | -5,530 |
Acquisition of non-controlling interest | -6,000 | ||
Payment of preferred dividends | 0 | 0 | |
Proceeds from employee stock purchases and exercise of stock options | 0 | 0 | 0 |
Other financing activities | 0 | 0 | 212 |
Net cash provided by (used in) financing activities | -34,907 | -6,206 | -6,124 |
Effect of change in foreign currency exchange rates on cash and cash equivalents | 496 | -231 | 217 |
Net increase in cash and cash equivalents | 40,739 | -7,273 | 9,623 |
Cash and cash equivalents at beginning of period | 23,355 | 30,628 | 21,005 |
Cash and cash equivalents at end of period | 64,094 | 23,355 | 30,628 |
Consolidation, Eliminations [Member] | |||
Cash flows from operating activities: | |||
Net cash provided by operating activities | 0 | ||
Cash flows from investing activities: | |||
Investment in multi-client data library | 0 | ||
Purchase of property, plant, equipment and seismic rental equipment | 0 | ||
Repayment of advances by INOVA Geophysical | 0 | ||
Net investment in and advances to OceanGeo B.V. prior to its consolidation | 0 | ||
Proceeds from sale of cost method investments | 0 | ||
Investment in convertible notes | 0 | ||
Capital contribution to affiliate | 13,592 | ||
Other investing activities | 0 | ||
Net used in investing activities | 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 | ||
Cost associated with issuance of debt | 0 | ||
Capital contribution from affiliate | -13,592 | ||
Intercompany lending | 0 | ||
Payment of preferred dividends | 0 | ||
Proceeds from employee stock purchases and exercise of stock options | 0 | ||
Other financing activities | 0 | ||
Net cash provided by (used in) financing activities | -13,592 | ||
Effect of change in foreign currency exchange rates on cash and cash equivalents | 0 | ||
Net increase in cash and cash equivalents | 0 | ||
Cash and cash equivalents at beginning of period | 0 | ||
Cash and cash equivalents at end of period | $0 | $0 |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Allowances for doubtful accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $7,222 | $6,711 | $1,198 |
Charged (Credited) to Costs and Expenses | 7,275 | 12,040 | 5,811 |
Deductions | -6,864 | -11,529 | -298 |
Balance at End of Year | 7,633 | 7,222 | 6,711 |
Allowances for doubtful notes receivable [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 0 | ||
Charged (Credited) to Costs and Expenses | 4,000 | ||
Deductions | 0 | ||
Balance at End of Year | 4,000 | ||
Warranty [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 643 | 1,041 | 715 |
Charged (Credited) to Costs and Expenses | 381 | 538 | 1,258 |
Deductions | -625 | -936 | -932 |
Balance at End of Year | 399 | 643 | 1,041 |
Valuation allowance on deferred tax assets [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 151,035 | 63,261 | 69,475 |
Charged (Credited) to Costs and Expenses | 54,229 | 88,112 | -6,214 |
Deductions | 0 | -338 | 0 |
Balance at End of Year | 205,264 | 151,035 | 63,261 |
Excess and obsolete inventory [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 32,555 | 14,239 | 13,037 |
Charged (Credited) to Costs and Expenses | 6,952 | 18,644 | 1,326 |
Deductions | -9,703 | -328 | -124 |
Balance at End of Year | $29,804 | $32,555 | $14,239 |