Ion Geophysical (IOGPQ) 10-Q 2 Nov 17 2017 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 31, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	ION GEOPHYSICAL CORP
Entity Central Index Key	866,609
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Amendment Flag	false
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		11,896,190

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 40,225	$ 52,652	$ 62,536	$ 84,933
Accounts receivable, net	39,374	20,770
Unbilled receivables	25,833	13,415
Inventories	14,264	15,241
Prepaid expenses and other current assets	4,259	9,559
Total current assets	123,955	111,637
Property, plant, equipment and seismic rental equipment, net	55,188	67,488
Multi-client data library, net	96,751	105,935
Goodwill	24,048	22,208
Intangible assets, net	2,026	3,103
Other assets	1,485	2,845
Total assets	303,453	313,216
Current liabilities:
Current maturities of long-term debt	38,819	14,581
Accounts payable	24,674	26,889
Accrued expenses	40,874	26,240
Accrued multi-client data library royalties	24,576	23,663
Deferred revenue	10,875	3,709
Total current liabilities	139,818	95,082
Long-term debt, net of current maturities	116,506	144,209
Other long-term liabilities	17,066	20,527
Total liabilities	273,390	259,818
Equity:
Common stock, $0.01 par value; authorized 26,666,667 shares; outstanding 11,896,190 and 11,792,447 shares at September 30, 2017 and December 31, 2016, respectively	119	118
Additional paid-in capital	901,138	899,198
Accumulated deficit	(853,527)	(824,679)
Accumulated other comprehensive loss	(18,999)	(21,748)
Total stockholders’ equity	28,731	52,889
Noncontrolling interest	1,332	509
Total equity	30,063	53,398
Total liabilities and equity	$ 303,453	$ 313,216

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value (usd per share)	$ 0.01	$ 0.01
Common stock, shares authorized	26,666,667	26,666,667
Common stock, shares outstanding	11,896,190	11,792,447

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Service revenues	$ 52,615	$ 65,914	$ 110,897	$ 104,500
Product revenues	8,480	12,708	28,755	32,939
Total net revenues	61,095	78,622	139,652	137,439
Cost of services	26,392	40,694	73,518	93,706
Cost of products	4,594	6,163	14,306	16,045
Gross profit	30,109	31,765	51,828	27,688
Operating expenses:
Research, development and engineering	4,396	4,231	11,998	14,601
Marketing and sales	5,645	4,680	15,062	13,374
General, administrative and other operating expenses	10,132	10,990	32,316	34,566
Total operating expenses	20,173	19,901	59,376	62,541
Income (loss) from operations	9,936	11,864	(7,548)	(34,853)
Interest expense, net	(3,959)	(4,607)	(12,664)	(14,043)
Other income (expense), net	722	(2,027)	(4,154)	(3,624)
Income (loss) before income taxes	6,699	5,230	(24,366)	(52,520)
Income tax expense	1,686	3,316	3,670	5,865
Net income (loss)	5,013	1,914	(28,036)	(58,385)
Net income attributable to noncontrolling interests	(78)	(215)	(812)	(272)
Net income (loss) attributable to ION	$ 4,935	$ 1,699	$ (28,848)	$ (58,657)
Net income (loss) per share:
Basic (usd per share)	$ 0.42	$ 0.14	$ (2.43)	$ (5.21)
Diluted (usd per share)	$ 0.41	$ 0.14	$ (2.43)	$ (5.21)
Weighted average number of common shares outstanding:
Basic, in shares	11,890	11,786	11,862	11,269
Diluted, in shares	12,071	11,907	11,862	11,269

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 5,013	$ 1,914	$ (28,036)	$ (58,385)
Other comprehensive loss, net of taxes, as appropriate:
Foreign currency translation adjustments	1,033	(1,083)	2,749	(5,282)
Comprehensive net income (loss)	6,046	831	(25,287)	(63,667)
Comprehensive (income) attributable to noncontrolling interest	(78)	(215)	(812)	(272)
Comprehensive net income (loss) attributable to ION	$ 5,968	$ 616	$ (26,099)	$ (63,939)

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net loss	$ (28,036)	$ (58,385)
Adjustments to reconcile net loss to cash provided by operating activities:
Depreciation and amortization (other than multi-client data library)	13,199	17,024
Amortization of multi-client data library	34,245	23,161
Stock-based compensation expense	1,694	2,512
Accrual for loss contingency related to legal proceedings	5,000	0
Loss on extinguishment of debt	0	2,182
Deferred income taxes	(900)	1,031
Change in operating assets and liabilities:
Accounts receivable	(18,200)	9,325
Unbilled receivables	(12,398)	(3,711)
Inventories	831	2,374
Accounts payable, accrued expenses and accrued royalties	1,011	3,381
Deferred revenue	7,092	(2,103)
Other assets and liabilities	6,480	6,441
Net cash provided by operating activities	10,018	3,232
Cash flows from investing activities:
Cash invested in multi-client data library	(16,576)	(11,601)
Purchase of property, plant, equipment and seismic rental assets	(1,021)	(567)
Net cash used in investing activities	(17,597)	(12,168)
Cash flows from financing activities:
Borrowings under revolving line of credit	0	15,000
Payments on notes payable and long-term debt	(4,320)	(6,726)
Costs associated with issuance of debt	0	(6,638)
Payment to repurchase bonds	0	(15,000)
Repurchase of common stock	0	(964)
Costs associated with issuance of equity	(123)	0
Other financing activities	(134)	13
Net cash used in financing activities	(4,577)	(14,315)
Effect of change in foreign currency exchange rates on cash and cash equivalents	(271)	854
Net decrease in cash and cash equivalents	(12,427)	(22,397)
Cash and cash equivalents at beginning of period	52,652	84,933
Cash and cash equivalents at end of period	$ 40,225	$ 62,536

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The condensed consolidated balance sheet of ION Geophysical Corporation and its subsidiaries (collectively referred to as the “Company” or “ION,” unless the context otherwise requires) at December 31, 2016 has been derived from the Company’s audited consolidated financial statements at that date. The condensed consolidated balance sheet at September 30, 2017, and the condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2017 and 2016 and the condensed consolidated statements of cash flows for the nine months ended September 30, 2017 and 2016, are unaudited. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for the three and nine months ended September 30, 2017 , are not necessarily indicative of the operating results for a full year or of future operations. The Company has non-redeemable noncontrolling interests in majority-owned affiliates which are reported as a separate component of equity in “Noncontrolling interests” in the condensed consolidated balance sheets. The activity for this noncontrolling interest relates to proprietary processing projects in Brazil. These condensed consolidated financial statements have been prepared using accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q and applicable rules of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in annual financial statements presented in accordance with accounting principles generally accepted in the United States have been omitted. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 .

Segment Information

Segment Information	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Segment Information	Segment Information The Company evaluates and reviews its results based on three business segments: E&P Technology & Services, E&P Operations Optimization, and Ocean Bottom Seismic Services. The Company measures segment operating results based on income (loss) from operations. The following table is a summary of segment information (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Net revenues: E&P Technology & Services: New Venture $ 43,542 $ 8,393 $ 70,477 $ 16,278 Data Library 5,044 21,510 25,360 32,057 Total multi-client revenues 48,586 29,903 95,837 48,335 Imaging Services 3,468 6,134 13,409 19,338 Total 52,054 36,037 109,246 67,673 E&P Operations Optimization: Devices 5,260 8,679 17,929 20,664 Optimization Software & Services 3,781 3,922 12,477 12,685 Total 9,041 12,601 30,406 33,349 Ocean Bottom Seismic Services — 29,984 — 36,417 Total $ 61,095 $ 78,622 $ 139,652 $ 137,439 Gross profit (loss): E&P Technology & Services $ 28,533 $ 12,888 $ 44,464 $ (418 ) E&P Operations Optimization 4,055 6,866 15,100 16,647 Ocean Bottom Seismic Services (2,479 ) 12,011 (7,736 ) 11,459 Total $ 30,109 $ 31,765 $ 51,828 $ 27,688 Gross margin: E&P Technology & Services 55 % 36 % 41 % (1 )% E&P Operations Optimization 45 % 54 % 50 % 50 % Ocean Bottom Seismic Services — % 40 % — % 31 % Total 49 % 40 % 37 % 20 % Income (loss) from operations: E&P Technology & Services $ 22,695 $ 7,259 $ 27,952 $ (16,867 ) E&P Operations Optimization 998 3,682 5,569 7,162 Ocean Bottom Seismic Services (4,432 ) 9,320 (12,300 ) 2,053 Support and other (9,325 ) (8,397 ) (28,769 ) (27,201 ) Income (loss) from operations 9,936 11,864 (7,548 ) (34,853 ) Interest expense, net (3,959 ) (4,607 ) (12,664 ) (14,043 ) Other income (expense), net 722 (2,027 ) (4,154 ) (3,624 ) Income (loss) before income taxes $ 6,699 $ 5,230 $ (24,366 ) $ (52,520 )

Long-term Debt

Long-term Debt	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Long-term Debt	Long-term Debt The following table is a summary of long-term debt obligations, net (in thousands): Obligations (in thousands) September 30, 2017 December 31, 2016 Senior secured second-priority lien notes (maturing December 15, 2021) $ 120,569 $ 120,569 Senior secured third-priority lien notes (maturing May 15, 2018) 28,497 28,497 Revolving line of credit (maturing August 22, 2019) 10,000 10,000 Equipment capital leases 542 3,446 Other debt — 1,415 Costs associated with issuances of debt (1) (4,283 ) (5,137 ) Total 155,325 158,790 Current portion of long-term debt and lease obligations (2) (38,819 ) (14,581 ) Non-current portion of long-term debt and lease obligations $ 116,506 $ 144,209 (1) Represents debt issuance costs presented as a direct deduction from the carrying amount of the debt liability associated with the Senior secured second-priority and Senior secured third-priority lien notes. These amounts do not include $0.4 million and $1.2 million of debt issuance costs associated with the Revolving Credit Facility as of September 30, 2017 and December 31, 2016 respectively, which are included within other assets on the balance sheet. (2) Includes $28.5 million Senior secured third-priority lien notes reclassified from long-term to current during the second quarter 2017. Revolving Credit Facility In August 2014, ION and its material U.S. subsidiaries, GX Technology Corporation, ION Exploration Products (U.S.A.), Inc., and I/O Marine Systems, Inc. (collectively, the “ Subsidiary Borrowers ”, and together with ION collectively, the “Borrowers”) entered into a Revolving Credit and Security Agreement with PNC Bank, National Association (“PNC”), as agent (the “Original Credit Agreement”), which was amended by the First Amendment to Revolving Credit and Security Agreement in August 2015 (the “First Amendment”) and the Second Amendment (as defined below) (the Original Credit Agreement, as amended by the First Amendment, and the Second Amendment, the “ Credit Facility ”). For a complete discussion of the terms, available credit and security of this Credit Facility , prior to the effectiveness of the Second Amendment, see Footnote 4 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 . The Credit Facility is available to provide for the Borrowers’ general corporate needs, including working capital requirements, capital expenditures, surety deposits and acquisition financing. The maximum amount of the revolving line of credit under the Credit Facility is the lesser of $40.0 million or a monthly borrowing base. On April 28, 2016, the Borrowers and PNC entered into a second amendment (the “Second Amendment”) to the Credit Facility. The Second Amendment, among other things: • increased the applicable margin for loans by 0.50% per annum (from 2.50% per annum to 3.00% per annum for alternate base rate loans and from 3.50% per annum to 4.00% per annum for LIBOR-based loans); • increased the minimum excess availability threshold to avoid triggering the agent’s rights to exercise dominion over cash and deposit accounts and increases certain of the thresholds upon which such dominion ceases; • increased the minimum liquidity threshold to avoid triggering the Company’s obligation to calculate and comply with the existing fixed charge coverage ratio and increased certain of the thresholds upon which such required calculation and compliance cease; • establish a reserve that will reduce the amount available to be borrowed by the aggregate amount owing under all Third Lien Notes that remain outstanding (if any) on or after February 14, 2018 (i.e., 90 days prior to the stated maturity of the Third Lien Notes); • increased the maximum amount of certain permitted junior indebtedness to $200.0 million (from $ 175.0 million ); • incorporated technical and conforming changes to reflect that the Second Lien Notes and the remaining Third Lien Notes (and any permitted refinancing thereof or subsequently incurred replacement indebtedness meeting certain requirements) constitute permitted indebtedness; • clarified the circumstances and mechanics under which the Company may prepay, repurchase or redeem the Second Lien Notes, the remaining Third Lien Notes and certain other junior indebtedness; • modified the cross-default provisions to incorporated defaults under the Second Lien Notes, the remaining Third Lien Notes and certain other junior indebtedness; and • eliminated the potential early commitment termination date and early maturity date that would otherwise have occurred ninety ( 90 ) days prior to the maturity date of the Third Lien Notes if any of the Third Lien Notes then remained outstanding. The borrowing base under the Credit Facility will increase or decrease monthly using a formula based on certain eligible receivables, eligible inventory and other amounts, including a percentage of the net orderly liquidation value of the Borrowers’ multi-client library (not to exceed $15.0 million for the multi-client data library data component). As of September 30, 2017 , the borrowing base under the Credit Facility was $22.1 million , and there was $10.0 million of indebtedness under the Credit Facility. Even though the Company experienced a significant increase in its accounts and unbilled receivables, those increases were part of the Company’s foreign operations which are not included in the borrowing base calculation. The Credit Facility is scheduled to mature on August 22, 2019. The obligations of Borrowers under the Credit Facility are secured by a first-priority security interest in 100% of the stock of the Subsidiary Borrowers and 65% of the equity interest in ION International Holdings L.P. and by substantially all other assets of the Borrowers. The Credit Facility contains covenants that, among other things, limit or prohibit the Borrowers, subject to certain exceptions and qualifications, from incurring additional indebtedness (including capital lease obligations), repurchasing equity, paying dividends or distributions, granting or incurring additional liens on the Borrowers’ properties, pledging shares of the Borrowers’ subsidiaries, entering into certain merger transactions, entering into transactions with the Company’s affiliates, making certain sales or other dispositions of the Borrowers’ assets, making certain investments, acquiring other businesses and entering into sale-leaseback transactions with respect to the Borrowers’ property. The Credit Facility requires that ION and the Subsidiary Borrowers maintain a minimum fixed charge coverage ratio of 1.1 to 1.0 as of the end of each fiscal quarter during the existence of a covenant testing trigger event. 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. A covenant testing trigger event occurs upon (a) the occurrence and continuance of an event of default under the Credit Facility or (b) the failure to maintain a measure of liquidity greater than (i) $7.5 million for five consecutive business days or (ii) $6.5 million on any given business day. Liquidity, as defined in the Credit Facility, is the Company’s excess availability to borrow ( $12.1 million at September 30, 2017 ) plus the aggregate amount of unrestricted cash held by ION, the Subsidiary Borrowers and their domestic subsidiaries. At September 30, 2017 , ION, the Subsidiary Borrowers and their domestic subsidiaries had unrestricted cash totaling $17.2 million and non-domestic subsidiaries had unrestricted cash totaling $23.0 million . At September 30, 2017 , the Company was in compliance with all of the covenants under the Credit Facility. The Credit Facility 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 Credit Facility as amended. Senior Secured Notes In May 2013, the Company sold $175.0 million aggregate principal amount of 8.125% Senior Secured Second-Priority Notes due 2018 ( the “Third Lien Notes ”) in a private offering pursuant to an Indenture dated as of May 13, 2013 (the “Third Lien Notes Indenture”). On April 28, 2016, the Company successfully completed an exchange offer (the “Exchange Offer”) and consent solicitation (the “Consent Solicitation”) related to the Third Lien Notes. For a complete discussion of the terms of the Exchange Offer and Consent Solicitation, see Footnote 4 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Prior to the completion of the Exchange Offer and Consent Solicitation the Third Lien Notes were senior secured second-priority obligations of the Company. After giving effect to the Exchange Offer and Consent Solicitation, the remaining aggregate principal amount of approximately $28.5 million of outstanding Third Lien Notes became senior secured third-priority obligations of the Company subordinated to the liens securing all senior and second priority indebtedness of the Company, including under the Credit Facility and Second-Priority Lien Notes (defined below). Pursuant to the Exchange Offer and Consent Solicitation, the Company (i) issued approximately $120.6 million in aggregate principal amount of the Company’s new 9.125% Senior Secured Second Priority Notes due 2021 (the “Second Lien Notes,” and collectively with the Third Lien Notes, the “Notes”) and 1,205,477 shares of the Company’s common stock in exchange for approximately $120.6 million in aggregate principal amount of Third Lien Notes, and (ii) purchased approximately $25.9 million in aggregate principal amount of Third Lien Notes in exchange for aggregate cash consideration totaling approximately $15.0 million , plus accrued and unpaid interest on the Third Lien Notes from the applicable last interest payment date to, but not including, April 28, 2016. After giving effect to the Exchange Offer and Consent Solicitation, the aggregate principal amount of the Third Lien Notes remaining outstanding was approximately $28.5 million and the aggregate principal amount of Second Lien Notes outstanding was approximately $120.6 million . The Third Lien Notes are guaranteed by the Company’s material U.S. subsidiaries, GX Technology Corporation, ION Exploration Products (U.S.A.), Inc. and I/O Marine Systems, Inc. (the “Guarantors”), and mature on May 15, 2018. Interest on the Third Lien 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. Prior to the completion of the Exchange Offer and Consent Solicitation, the Third Lien Notes Indenture contained certain covenants that, among other things, limited or prohibited 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 Third Lien 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 Third Lien Notes Indenture are subject to certain exceptions and qualifications. After giving effect to the Exchange Offer and Consent Solicitation, the Third Lien Notes Indenture was amended to, among other things, provide for the release of the second priority security interest in the collateral securing the remaining Third Lien Notes and the grant of a third priority security interest in the collateral, subordinate to liens securing all senior and second priority indebtedness of the Company, including the Credit Facility and the Second Lien Notes, and eliminate substantially all of the restrictive covenants and certain events of default pertaining to the remaining Third Lien Notes. As of September 30, 2017 , the Company was in compliance with the covenants with respect to the Third Lien Notes. The Second Lien Notes are senior secured second-priority obligations guaranteed by the Guarantors. The Second Lien Notes mature on December 15, 2021. Interest on the Second Lien Notes accrues at the rate of 9.125% per annum and is payable semiannually in arrears on June 15 and December 15 of each year during their term, except that the interest payment otherwise payable on June 15, 2021 will be payable on December 15, 2021. The indenture dated April 28, 2016, governing the Second Lien Notes (the “Second Lien Notes Indenture”) contains certain covenants that, among other things, limits or prohibits 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 Second Lien 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 Second Lien Notes Indenture are subject to certain exceptions and qualifications. All of the Company’s subsidiaries are currently restricted subsidiaries. As of September 30, 2017 , the Company was in compliance with the covenants with respect to the Second Lien Notes. On or after December 15, 2019, the Company may on one or more occasions redeem all or a part of the Second Lien Notes at the redemption prices set forth below, plus accrued and unpaid interest and special interest, if any, on the Second Lien Notes redeemed during the twelve-month period beginning on December 15th of the years indicated below: Date Percentage 2019 105.500% 2020 103.500% 2021 and thereafter 100.000%

Net Income (Loss) per Share

Net Income (Loss) per Share	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Net Income (Loss) per Share	Net Income (Loss) per Share Basic net income (loss) per common share is computed by dividing net income (loss) applicable to common shares by the weighted average number of common shares outstanding during the period. Diluted net income (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 issued or reserved for future issuance under outstanding stock options at September 30, 2017 and 2016 was 782,739 and 877,569 , respectively, and the total number of shares of restricted stock and shares reserved for restricted stock units outstanding at September 30, 2017 and 2016 was 163,184 and 293,340 , respectively. The effects of the dilutive stock awards were anti-dilutive for the nine months ended September 30, 2017 and 2016, as reflected in the table below. The following table summarizes the computation of basic and diluted net income (loss) per common share (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Net income (loss) attributable to ION $ 4,935 $ 1,699 $ (28,848 ) $ (58,657 ) Weighted average number of common shares outstanding 11,890 11,786 11,862 11,269 Effect of dilutive stock awards 181 121 — — Weighted average number of diluted common shares outstanding 12,071 11,907 11,862 11,269 Basic net income (loss) per share $ 0.42 $ 0.14 $ (2.43 ) $ (5.21 ) Diluted net income (loss) per share $ 0.41 $ 0.14 $ (2.43 ) $ (5.21 )

Income Taxes

Income Taxes	9 Months Ended
	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company maintains a valuation allowance for substantially all of its deferred tax assets. The valuation allowance is calculated in accordance with the provisions of the Financial Accounting Standards Board’s (“FASB”) Accounting Standard Codification (“ASC”) Topic 740 “Income Taxes,” which requires that a valuation allowance be established or maintained when it is “more likely than not” that all or a portion of deferred tax assets will not be realized. In the event the Company’s expectations of future operating results change, the valuation allowance may need to be adjusted downward. As of September 30, 2017 , the Company has no unreserved U.S. deferred tax assets. The tax provision for the nine months ended September 30, 2017 has been calculated based on the actual tax expense incurred for the period. Given the current uncertainty in expected income generated in various foreign jurisdictions, where tax rates can vary greatly, the Company’s actual tax rate is the best estimate of year-to-date tax expense. The Company’s effective tax rates for the three months ended September 30, 2017 and 2016 were 25.2% and 63.4% , respectively. The Company’s effective tax rate for the nine months ended September 30, 2017 and 2016 were (15.1)% and (11.2)% respectively. The Company’s effective tax rates for the three and nine months ended September 30, 2017 were negatively impacted by the change in valuation allowance related to U.S. operating losses for which the Company cannot currently recognize a tax benefit. The Company’s income tax expense for the nine months ended September 30, 2017 of $3.7 million primarily relates to results from the Company’s non-U.S. businesses. The Company has approximately $1.3 million of unrecognized tax benefits and does not expect to recognize significant increases in unrecognized tax benefits during the next 12-month period. Interest and penalties, if any, related to unrecognized tax benefits are recorded in income tax expense. As of September 30, 2017 , the Company’s U.S. federal tax returns for 2013 and subsequent years remain subject to examination by tax authorities. The Company is no longer subject to U.S. Internal Revenue Service (“IRS”) examination for periods prior to 2013, although carryforward attributes related to losses generated prior to 2013 may still be adjusted upon examination by the IRS if they either have been or will be used in an open year. In the Company’s foreign tax jurisdictions, tax returns for 2010 and subsequent years generally remain open to examination.

Litigation

Litigation	9 Months Ended
	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Litigation	Litigation WesternGeco In June 2009, WesternGeco L.L.C. (“WesternGeco”) filed a lawsuit against the Company in the United States District Court for the Southern District of Texas, Houston Division. In the lawsuit, styled WesternGeco L.L.C. v. ION Geophysical Corporation , WesternGeco alleged that the Company had infringed several method and apparatus claims contained in four of its United States patents regarding marine seismic streamer steering devices. The trial began in July 2012. A verdict was returned by the jury in August 2012, finding that the Company infringed the claims contained in the four patents by supplying its DigiFIN ® lateral streamer control units and the related software from the United States and awarded WesternGeco the sum of $105.9 million in damages, consisting of $12.5 million in reasonable royalty and $93.4 million in lost profits. In June 2013, the presiding judge entered a Memorandum and Order, ruling that WesternGeco is entitled to be awarded supplemental damages for the additional DigiFIN units that were supplied from the United States before and after the 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 reduced 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 related to the case. The Final Judgment also 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 District 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. The Company and WesternGeco each appealed the Final Judgment to the United States Court of Appeals for the Federal Circuit in Washington, D.C. On July 2, 2015, the Court of Appeals reversed in part the judgment, holding the District Court erred by including lost profits in the Final Judgment. Lost profits were $93.4 million and prejudgment interest was approximately $10.9 million of the $123.8 million Final Judgment. Pre-judgment interest on the lost profits portion will be treated in the same way as the lost profits. Post-judgment interest will likewise be treated in the same fashion. On July 29, 2015, WesternGeco filed a petition for rehearing en banc before the Court of Appeals. On October 30, 2015 the Court of Appeals denied WesternGeco’s petition for rehearing en banc. On February 26, 2016, WesternGeco filed a petition for writ of certiorari by the Supreme Court. The Company filed its response on April 27, 2016. Subsequently, on June 20, 2016, the Supreme Court refused to disturb the Court of Appeals ruling finding no lost profits as a matter of law. Separately, in light of the changes in case law regarding the standard of proof for willfulness in the Halo and Stryker cases, the Supreme Court indicated that the case should be remanded to the Federal Circuit for a determination of whether or not the willfulness determination by the District Court was appropriate. On November 14, 2016, the District Court issued an order reducing the amount of the appeal bond from $120.0 million to $65.0 million , ordered the sureties to pay principal and interest on the royalty previously awarded and declined to issue a final judgment until after consideration of whether enhanced damages related to willfulness should be awarded in the case. While the Company did not agree with the unusual decision by the District Court ordering payment of the royalty damages and interest without a final judgment, the Company paid the $20.8 million due pursuant to the order to WesternGeco on November 25, 2016. On March 14, 2017, the District Court held a hearing on whether or not additional damages for willfulness would be payable. The Judge found that ION’s infringement was willful, based on his perception that ION did not adequately investigate the scope of the patent, and ION’s conduct during trial. However, in his May 16, 2017 order, he limited enhanced damages to $5.0 million because it was a “close case,” there was no evidence of copying, and ION was simply acting as a competitor in a capitalist marketplace. The District Court also ordered the appeal bond to be released and discharged. The Court’s findings were memorialized in an order issued on May 16, 2017. On June 30, 2017, WesternGeco and the Company jointly agreed that neither party would appeal the District Court's award of $5.0 million in enhanced damages. The parties also agreed that the $5.0 million would be paid over the course of 12 months with $1.25 million being paid in two installments of $0.625 million in 2017 and the remaining $3.75 million being paid in three quarterly payments of $1.25 million beginning January 1, 2018. This agreement was memorialized by the court in an order issued on July 26, 2017. WesternGeco filed a second petition for writ of certiorari in the U.S. Supreme Court on February 17, 2017, appealing the lost profits issue again. The Company filed its response to WesternGeco’s second attempt to appeal to the Supreme Court the lost profits issue, raising both the substantive matters the Company addressed by opposing WesternGeco’s first petition, and also raising a procedural argument that WesternGeco cannot raise the same issue for a second time in a second petition for certiorari. On May 30, 2017, the Supreme Court called for the views of the U.S. Solicitor General regarding whether or not to grant certiorari. (The U.S. Supreme Court has discretion to hear, or not hear, WesternGeco’s appeal; granting WesternGeco’s request for a writ of certiorari would mean that the U.S. Supreme Court decided to hear WesternGeco’s appeal of the decision by the United States Court of Appeals for the Federal Circuit with respect to the lost profits issue. If the Supreme Court agrees to hear WesternGeco’s appeal, the Company will contest WesternGeco’s appeal at the Supreme Court. In such a case, it is possible that the Supreme Court could issue a ruling adverse to the Company.) The Company and WesternGeco each met with the Solicitor General’s office in late July, 2017. The Solicitor General is expected to issue its brief as to whether the Supreme Court should grant certiorari near the end of 2017 or the beginning of 2018, although there is no deadline for the Solicitor General to issue its brief. Other The Company has been named in various other lawsuits or threatened actions that are incidental to its ordinary business. Litigation is inherently unpredictable. Any claims against the Company, whether meritorious or not, could be time-consuming, cause the Company to incur costs and expenses, require significant amounts of management time and result in the diversion of significant operational resources. The results of these lawsuits and actions cannot be predicted with certainty. Management currently believes that the ultimate resolution of these matters will not have a material adverse impact on the financial condition, results of operations or liquidity of the Company.

Other Income (Expense), Net

Other Income (Expense), Net	9 Months Ended
	Sep. 30, 2017
Other Income and Expenses [Abstract]
Other Income (Expense), Net	Other Income (Expense), Net The following table is a summary of other income (expense) , net (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Accrual for loss related to legal proceedings (Footnote 6) $ — $ — $ (5,000 ) $ — Loss on bond exchange — — — (2,182 ) Other income (expense), net 722 (2,027 ) 846 (1,442 ) Total other income (expense), net $ 722 $ (2,027 ) $ (4,154 ) $ (3,624 )

Details of Selected Balance She

Details of Selected Balance Sheet Accounts	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Details of Selected Balance Sheet Accounts	Details of Selected Balance Sheet Accounts Inventories The following table is a summary of inventories (in thousands): September 30, 2017 December 31, 2016 Raw materials and subassemblies $ 20,519 $ 21,454 Work-in-process 1,044 2,255 Finished goods 7,392 6,581 Reserve for excess and obsolete inventories (14,691 ) (15,049 ) Total $ 14,264 $ 15,241

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss The following table is a summary of changes in accumulated other comprehensive loss by component (in thousands): Foreign currency translation adjustments Total Accumulated other comprehensive loss at December 31, 2016 $ (21,748 ) $ (21,748 ) Net current-period other comprehensive income 2,749 2,749 Accumulated other comprehensive loss at September 30, 2017 $ (18,999 ) $ (18,999 )

Supplemental Cash Flow Informat

Supplemental Cash Flow Information and Non-Cash Activity	9 Months Ended
	Sep. 30, 2017
Supplemental Cash Flow Elements [Abstract]
Supplemental Cash Flow Information and Non-cash Activity	Supplemental Cash Flow Information and Non-cash Activity The following table is a summary of cash paid for Interest and Income taxes and non-cash items from investing and financing activities (in thousands): Nine Months Ended September 30, 2017 2016 Cash paid during the period for: Interest $ 7,273 $ 8,819 Income taxes 3,756 2,579 Non-cash items from investing and financing activities: Investment in multi-client data library in accounts payable and accrued expenses 8,485 — Bond exchange — 10,740 (a) (a) This represents the non-cash portion of the bond exchange.

Fair Value of Financial Instrum

Fair Value of Financial Instruments	9 Months Ended
	Sep. 30, 2017
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. The carrying amounts of the Company’s debt as of September 30, 2017 and December 31, 2016 were $159.6 million and $163.9 million , respectively, compared to its fair values of $139.8 million and $114.8 million as of September 30, 2017 and December 31, 2016 , respectively. The fair value of the debt was calculated using a readily observable price (Level 1). 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.

Stockholder's Equity, Stock-Bas

Stockholder's Equity, Stock-Based Compensation Expense and Repurchase Plan	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stockholder's Equity, Stock-Based Compensation Expense and Repurchase Plan	Stockholder's Equity, Stock-Based Compensation Expense and Repurchase Plan At-The-Market Equity Offering Program On December 22, 2016 the Company announced that it filed a prospectus supplement under which it could have sold up to $20 million of its common stock through an "at-the-market" equity offering program (the "ATM Program"). ION intended to use the net proceeds from sales under the ATM Program to be positioned to capitalize on opportunities such as acquiring complementary distressed assets, or other value-added transactions. Effective May 2, 2017, the Company terminated and canceled the ATM Program. No shares were sold pursuant to the ATM Program. Stock-Based Compensation The total number of shares issued or reserved for future issuance under outstanding stock options at September 30, 2017 and 2016 was 782,739 and 877,569 , respectively, and the total number of shares of restricted stock and shares reserved for restricted stock units outstanding at September 30, 2017 and 2016 was 163,184 and 293,340 , respectively. The following table presents a summary of the activity related to stock options, restricted stock and restricted stock unit awards for the nine months ended September 30, 2017 : Stock Options Restricted Stock and Unit Awards Number of Shares Outstanding at December 31, 2016 847,635 285,308 Granted — 17,500 Stock options exercised/restricted stock and unit awards vested (12,500 ) (115,133 ) Cancelled/forfeited (52,396 ) (24,491 ) Outstanding at September 30, 2017 782,739 163,184 Stock-based compensation expense recognized for the nine months ended September 30, 2017 and 2016, totaled $1.7 million and $2.5 million , respectively. In the first quarter 2017, the Company adopted ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," that changed how the Company accounts for certain aspects of share-based payments to employees. The Company is required to recognize the income tax effects of awards in the statement of income when the awards vest or are settled. The guidance on employers’ accounting for an employee’s use of shares to satisfy the employer’s statutory income tax withholding obligation and for forfeitures is changed and now requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity. There was no impact of adoption of ASU 2016-09 on net income, basic and diluted earnings per share, deferred tax assets or net cash from operations. Stock Repurchase Program On November 4, 2015, the Company’s board of directors approved a stock repurchase program authorizing a Company stock repurchase, from time to time from November 10, 2015, through November 10, 2017, up to $25 million in shares of the Company’s outstanding common stock. The stock repurchase program may be implemented through open market repurchases or privately negotiated transactions, at management’s discretion. The actual timing, number and value of shares repurchased under the program will be determined by management at its discretion and will depend on a number of factors including the market price of the shares of our common stock and general market and economic conditions, applicable legal requirements and compliance with the terms of our outstanding indebtedness. The repurchase program does not obligate the Company to acquire any particular amount of common stock and may be modified or suspended at any time and could be terminated prior to completion. As of September 30, 2017 , the Company had repurchased $3.0 million or 451,792 shares of its common stock under the repurchase program at an average price per share of $6.41 . The Company does not expect to repurchase any additional shares prior to the expiration of the program on November 10, 2017.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2017
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. In August 2015, the FASB issued guidance deferring the effective date to years beginning after December 15, 2017, and interim periods within those years. This new guidance replaces virtually all existing U.S. GAAP and IFRS guidance on revenue recognition. The underlying principle is that the entity will recognize revenue to depict the transfer of goods and services to customers at an amount that the entity expects to be entitled to in the exchange of goods and services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The Company currently expects to use the modified retrospective adoption method effective January 1, 2018. While the Company continues to finalize its assessment regarding how the implementation of this new guidance may affect the Company’s New Venture group’s financial position or results of operations, no material impact is currently expected. The Company does not expect the adoption of ASC 606 to have a material impact on its consolidated balance sheets or consolidated statement of operations for its Imaging Services group, Devices group, Optimization Software & Services group or its Ocean Bottom Seismic Services segment. The Company has put in place an implementation team to review contracts subject to the new revenue standard, provide trainings and work with third party specialists to assist in the evaluation. The implementation team continues to review contracts and monitor the potential impact to the Company’s financial position or results of operations. In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842)” which introduces the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. The guidance will be effective for annual reporting periods beginning after December 15, 2018, and interim periods within those fiscal years with early adoption permitted. The Company currently expects that the adoption of ASU 2016-02 may have a material impact related to its facility operating leases on its consolidated financial statements, and continues to evaluate the impact of vessel leases in the Company’s Ocean Bottom Seismic Services segment. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230), Restricted Cash (a consensus of the FASB Emerging Issues Task Force) (ASU 2016-18),” that will require entities to show changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet is required. The guidance will be effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted. The Company does not currently expect the adoption of ASU 2016-18 to have a material impact on its consolidated financial statements.

Condensed Consolidating Financi

Condensed Consolidating Financial Information	9 Months Ended
	Sep. 30, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Condensed Consolidating Financial Information	Condensed Consolidating Financial Information The Notes were issued by ION Geophysical Corporation and are guaranteed by the Guarantors, all of which are wholly-owned subsidiaries. The Guarantors have fully and unconditionally guaranteed the payment obligations of ION Geophysical Corporation with respect to the Notes. The following condensed consolidating financial information presents the results of operations, financial position and cash flows for: • ION Geophysical Corporation and the Guarantors (in each case, reflecting investments in subsidiaries utilizing the equity method of accounting). • All other subsidiaries of ION Geophysical Corporation that are not Guarantors. • The consolidating adjustments necessary to present ION Geophysical Corporation’s results on a consolidated basis. This condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements and footnotes. For additional information pertaining to the Notes, See Item 2. “ Management’s Discussion and Analysis of Financial Condition and Results of Operations ” in Part II of this Form 10-Q. September 30, 2017 Balance Sheet ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 17,244 $ — $ 22,981 $ — $ 40,225 Accounts receivable, net 40 6,034 33,300 — 39,374 Unbilled receivables — 11,357 14,476 — 25,833 Inventories — 8,582 5,682 — 14,264 Prepaid expenses and other current assets 1,558 504 2,197 — 4,259 Total current assets 18,842 26,477 78,636 — 123,955 Property, plant, equipment and seismic rental equipment, net 761 8,292 46,135 — 55,188 Multi-client data library, net — 68,791 27,960 — 96,751 Investment in subsidiaries 679,958 303,996 — (983,954 ) — Goodwill — — 24,048 — 24,048 Intangible assets, net — 2,002 24 — 2,026 Intercompany receivables — — 52,655 (52,655 ) — Other assets 1,080 145 260 — 1,485 Total assets $ 700,641 $ 409,703 $ 229,718 $ (1,036,609 ) $ 303,453 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ 38,278 $ 541 $ — $ — $ 38,819 Accounts payable 2,682 19,720 2,272 — 24,674 Accrued expenses 16,325 13,458 11,091 — 40,874 Accrued multi-client data library royalties — 24,371 205 — 24,576 Deferred revenue — 2,431 8,444 — 10,875 Total current liabilities 57,285 60,521 22,012 — 139,818 Long-term debt, net of current maturities 116,506 — — — 116,506 Intercompany payables 497,658 38,708 — (536,366 ) — Other long-term liabilities 461 6,170 10,435 — 17,066 Total liabilities 671,910 105,399 32,447 (536,366 ) 273,390 Equity: Common stock 119 290,460 49,394 (339,854 ) 119 Additional paid-in capital 901,138 180,699 202,290 (382,989 ) 901,138 Accumulated earnings (deficit) (853,527 ) 233,706 42,766 (276,472 ) (853,527 ) Accumulated other comprehensive income (loss) (18,999 ) 4,385 (19,746 ) 15,361 (18,999 ) Due from ION Geophysical Corporation — (404,946 ) (78,765 ) 483,711 — Total stockholders’ equity 28,731 304,304 195,939 (500,243 ) 28,731 Noncontrolling interests — — 1,332 — 1,332 Total equity 28,731 304,304 197,271 (500,243 ) 30,063 Total liabilities and equity $ 700,641 $ 409,703 $ 229,718 $ (1,036,609 ) $ 303,453 December 31, 2016 Balance Sheet ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 23,042 $ — $ 29,610 $ — $ 52,652 Accounts receivable, net — 12,775 7,995 — 20,770 Unbilled receivables — 5,275 8,140 — 13,415 Inventories — 8,610 6,631 — 15,241 Prepaid expenses and other current assets 3,387 4,624 1,548 — 9,559 Total current assets 26,429 31,284 53,924 — 111,637 Property, plant, equipment and seismic rental equipment, net 1,745 12,369 53,374 — 67,488 Multi-client data library, net — 97,369 8,566 — 105,935 Investment in subsidiaries 660,880 257,732 — (918,612 ) — Goodwill — — 22,208 — 22,208 Intangible assets, net — 3,008 95 — 3,103 Intercompany receivables — — 32,174 (32,174 ) — Other assets 2,469 145 231 — 2,845 Total assets $ 691,523 $ 401,907 $ 170,572 $ (950,786 ) $ 313,216 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ 11,281 $ 3,166 $ 134 $ — $ 14,581 Accounts payable 2,101 19,720 5,068 — 26,889 Accrued expenses 8,579 10,016 7,645 — 26,240 Accrued multi-client data library royalties — 23,663 — — 23,663 Deferred revenue — 2,667 1,042 — 3,709 Total current liabilities 21,961 59,232 13,889 — 95,082 Long-term debt, net of current maturities 143,930 279 — — 144,209 Intercompany payables 472,276 10,155 — (482,431 ) — Other long-term liabilities 467 12,117 7,943 — 20,527 Total liabilities 638,634 81,783 21,832 (482,431 ) 259,818 Equity: Common stock 118 290,460 19,138 (309,598 ) 118 Additional paid-in capital 899,198 180,700 232,590 (413,290 ) 899,198 Accumulated earnings (deficit) (824,679 ) 216,730 (3,639 ) (213,091 ) (824,679 ) Accumulated other comprehensive income (loss) (21,748 ) 4,420 (21,787 ) 17,367 (21,748 ) Due from ION Geophysical Corporation — (372,186 ) (78,071 ) 450,257 — Total stockholders’ equity 52,889 320,124 148,231 (468,355 ) 52,889 Noncontrolling interests — — 509 — 509 Total equity 52,889 320,124 148,740 (468,355 ) 53,398 Total liabilities and equity $ 691,523 $ 401,907 $ 170,572 $ (950,786 ) $ 313,216 Three Months Ended September 30, 2017 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net revenues $ — $ 16,554 $ 44,541 $ — $ 61,095 Cost of sales — 19,517 11,469 — 30,986 Gross profit (loss) — (2,963 ) 33,072 — 30,109 Total operating expenses 8,349 7,856 3,968 — 20,173 Income (loss) from operations (8,349 ) (10,819 ) 29,104 — 9,936 Interest expense, net (4,054 ) 36 59 — (3,959 ) Intercompany interest, net 259 (1,603 ) 1,344 — — Equity in earnings of investments 17,097 31,565 — (48,662 ) — Other income (expense) 19 (8 ) 711 — 722 Net income (loss) before income taxes 4,972 19,171 31,218 (48,662 ) 6,699 Income tax expense 37 837 812 — 1,686 Net income 4,935 18,334 30,406 (48,662 ) 5,013 Net income attributable to noncontrolling interests — — (78 ) — (78 ) Net income (loss) attributable to ION $ 4,935 $ 18,334 $ 30,328 (48,662 ) $ 4,935 Comprehensive net income $ 5,968 $ 18,347 $ 31,351 $ (49,620 ) $ 6,046 Comprehensive income attributable to noncontrolling interest — — (78 ) — (78 ) Comprehensive net income attributable to ION $ 5,968 $ 18,347 $ 31,273 $ (49,620 ) $ 5,968 Three Months Ended September 30, 2016 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net revenues $ — $ 30,155 $ 48,467 $ — $ 78,622 Cost of sales — 22,724 24,133 — 46,857 Gross profit — 7,431 24,334 — 31,765 Total operating expenses 7,692 7,186 5,023 — 19,901 Income (loss) from operations (7,692 ) 245 19,311 — 11,864 Interest expense, net (4,583 ) (32 ) 8 — (4,607 ) Intercompany interest, net 276 (1,138 ) 862 — — Equity in earnings of investments 13,494 15,039 — (28,533 ) — Other income (expense) 245 948 (3,220 ) — (2,027 ) Net income before income taxes 1,740 15,062 16,961 (28,533 ) 5,230 Income tax expense 41 670 2,605 — 3,316 Net income 1,699 14,392 14,356 (28,533 ) 1,914 Net income attributable to noncontrolling interests — — (215 ) — (215 ) Net income attributable to ION $ 1,699 $ 14,392 $ 14,141 (28,533 ) $ 1,699 Comprehensive net income $ 616 $ 14,392 $ 13,058 $ (27,235 ) $ 831 Comprehensive income attributable to noncontrolling interest — — (215 ) — (215 ) Comprehensive net income attributable to ION $ 616 $ 14,392 $ 12,843 $ (27,235 ) $ 616 Nine Months Ended September 30, 2017 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net revenues $ — $ 44,533 $ 95,119 $ — $ 139,652 Cost of sales — 55,473 32,351 — 87,824 Gross profit (loss) — (10,940 ) 62,768 — 51,828 Total operating expenses 25,761 20,727 12,888 — 59,376 Income (loss) from operations (25,761 ) (31,667 ) 49,880 — (7,548 ) Interest expense, net (12,697 ) (60 ) 93 — (12,664 ) Intercompany interest, net 852 (4,743 ) 3,891 — — Equity in earnings of investments 13,963 49,418 — (63,381 ) — Other income (expense) (5,068 ) (348 ) 1,262 — (4,154 ) Net income (loss) before income taxes (28,711 ) 12,600 55,126 (63,381 ) (24,366 ) Income tax expense 137 (4,376 ) 7,909 — 3,670 Net income (28,848 ) 16,976 47,217 (63,381 ) (28,036 ) Net income attributable to noncontrolling interests — — (812 ) — (812 ) Net income (loss) attributable to ION $ (28,848 ) $ 16,976 46,405 $ (63,381 ) (28,848 ) Comprehensive net income (loss) $ (26,099 ) $ 16,941 $ 49,257 $ (65,386 ) $ (25,287 ) Comprehensive income attributable to noncontrolling interest — — (812 ) — (812 ) Comprehensive net income (loss) attributable to ION $ (26,099 ) $ 16,941 $ 48,445 $ (65,386 ) $ (26,099 ) Nine Months Ended September 30, 2016 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net revenues $ — $ 58,907 $ 78,532 $ — $ 137,439 Cost of sales — 67,061 42,690 — 109,751 Gross profit (loss) — (8,154 ) 35,842 — 27,688 Total operating expenses 24,894 21,687 15,960 — 62,541 Income (loss) from operations (24,894 ) (29,841 ) 19,882 — (34,853 ) Interest expense, net (13,917 ) (179 ) 53 — (14,043 ) Intercompany interest, net 727 (3,250 ) 2,523 — — Equity in earnings (losses) of investments (18,617 ) 19,163 — (546 ) — Other income (expense) (1,841 ) 771 (2,554 ) — (3,624 ) Net income (loss) before income taxes (58,542 ) (13,336 ) 19,904 (546 ) (52,520 ) Income tax expense 115 1,419 4,331 — 5,865 Net income (loss) (58,657 ) (14,755 ) 15,573 (546 ) (58,385 ) Net income attributable to noncontrolling interests — — (272 ) — (272 ) Net income (loss) applicable to ION $ (58,657 ) (14,755 ) $ 15,301 $ (546 ) $ (58,657 ) Comprehensive net income (loss) $ (63,939 ) $ (14,755 ) $ 10,019 $ 5,008 $ (63,667 ) Comprehensive income attributable to noncontrolling interest — — (272 ) — (272 ) Comprehensive net income (loss) attributable to ION $ (63,939 ) $ (14,755 ) $ 9,747 $ 5,008 $ (63,939 ) Nine Months Ended September 30, 2017 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 $ (2,785 ) $ 11,764 $ 1,039 $ 10,018 Cash flows from investing activities: Cash invested in multi-client data library — (7,041 ) (9,535 ) (16,576 ) Purchase of property, plant, equipment and seismic rental equipment (165 ) (775 ) (81 ) (1,021 ) Net cash used in investing activities (165 ) (7,816 ) (9,616 ) (17,597 ) Cash flows from financing activities: Payments on notes payable and long-term debt (1,018 ) (3,244 ) (58 ) (4,320 ) Intercompany lending (1,574 ) (704 ) 2,278 — Costs associated with issuance of equity (123 ) — — (123 ) Other financing activities (134 ) — — (134 ) Net cash provided by (used in) financing activities (2,849 ) (3,948 ) 2,220 (4,577 ) Effect of change in foreign currency exchange rates on cash and cash equivalents — — (271 ) (271 ) Net decrease in cash and cash equivalents (5,799 ) — (6,628 ) (12,427 ) Cash and cash equivalents at beginning of period 23,042 — 29,610 52,652 Cash and cash equivalents at end of period $ 17,243 $ — $ 22,982 $ 40,225 Nine Months Ended September 30, 2016 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 $ (31,403 ) $ 50,669 $ (16,034 ) $ 3,232 Cash flows from investing activities: Investment in multi-client data library — (10,027 ) (1,574 ) (11,601 ) Purchase of property, plant, equipment and seismic rental equipment — (567 ) — (567 ) Net cash used in investing activities — (10,594 ) (1,574 ) (12,168 ) Cash flows from financing activities: Borrowings under revolving line of credit 15,000 — — 15,000 Repurchase of common stock (964 ) — — (964 ) Payments on notes payable and long-term debt (951 ) (5,304 ) (471 ) (6,726 ) Cost associated with issuance of notes (6,638 ) — — (6,638 ) Intercompany lending 31,867 (34,771 ) 2,904 — Payment to repurchase bonds (15,000 ) — — (15,000 ) Other financing activities 13 — — 13 Net cash provided by (used in) financing activities 23,327 (40,075 ) 2,433 (14,315 ) Effect of change in foreign currency exchange rates on cash and cash equivalents — — 854 854 Net decrease in cash and cash equivalents (8,076 ) — (14,321 ) (22,397 ) Cash and cash equivalents at beginning of period 33,734 — 51,199 84,933 Cash and cash equivalents at end of period $ 25,658 $ — $ 36,878 $ 62,536

Basis of Presentation (Policies

Basis of Presentation (Policies)	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
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. In August 2015, the FASB issued guidance deferring the effective date to years beginning after December 15, 2017, and interim periods within those years. This new guidance replaces virtually all existing U.S. GAAP and IFRS guidance on revenue recognition. The underlying principle is that the entity will recognize revenue to depict the transfer of goods and services to customers at an amount that the entity expects to be entitled to in the exchange of goods and services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The Company currently expects to use the modified retrospective adoption method effective January 1, 2018. While the Company continues to finalize its assessment regarding how the implementation of this new guidance may affect the Company’s New Venture group’s financial position or results of operations, no material impact is currently expected. The Company does not expect the adoption of ASC 606 to have a material impact on its consolidated balance sheets or consolidated statement of operations for its Imaging Services group, Devices group, Optimization Software & Services group or its Ocean Bottom Seismic Services segment. The Company has put in place an implementation team to review contracts subject to the new revenue standard, provide trainings and work with third party specialists to assist in the evaluation. The implementation team continues to review contracts and monitor the potential impact to the Company’s financial position or results of operations. In February 2016, the FASB issued ASU 2016-02, “ Leases (Topic 842)” which introduces the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. The guidance will be effective for annual reporting periods beginning after December 15, 2018, and interim periods within those fiscal years with early adoption permitted. The Company currently expects that the adoption of ASU 2016-02 may have a material impact related to its facility operating leases on its consolidated financial statements, and continues to evaluate the impact of vessel leases in the Company’s Ocean Bottom Seismic Services segment. In November 2016, the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230), Restricted Cash (a consensus of the FASB Emerging Issues Task Force) (ASU 2016-18),” that will require entities to show changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one line item on the balance sheet, a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet is required. The guidance will be effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted. The Company does not currently expect the adoption of ASU 2016-18 to have a material impact on its consolidated financial statements.

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Summary of Segment Information	The following table is a summary of segment information (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Net revenues: E&P Technology & Services: New Venture $ 43,542 $ 8,393 $ 70,477 $ 16,278 Data Library 5,044 21,510 25,360 32,057 Total multi-client revenues 48,586 29,903 95,837 48,335 Imaging Services 3,468 6,134 13,409 19,338 Total 52,054 36,037 109,246 67,673 E&P Operations Optimization: Devices 5,260 8,679 17,929 20,664 Optimization Software & Services 3,781 3,922 12,477 12,685 Total 9,041 12,601 30,406 33,349 Ocean Bottom Seismic Services — 29,984 — 36,417 Total $ 61,095 $ 78,622 $ 139,652 $ 137,439 Gross profit (loss): E&P Technology & Services $ 28,533 $ 12,888 $ 44,464 $ (418 ) E&P Operations Optimization 4,055 6,866 15,100 16,647 Ocean Bottom Seismic Services (2,479 ) 12,011 (7,736 ) 11,459 Total $ 30,109 $ 31,765 $ 51,828 $ 27,688 Gross margin: E&P Technology & Services 55 % 36 % 41 % (1 )% E&P Operations Optimization 45 % 54 % 50 % 50 % Ocean Bottom Seismic Services — % 40 % — % 31 % Total 49 % 40 % 37 % 20 % Income (loss) from operations: E&P Technology & Services $ 22,695 $ 7,259 $ 27,952 $ (16,867 ) E&P Operations Optimization 998 3,682 5,569 7,162 Ocean Bottom Seismic Services (4,432 ) 9,320 (12,300 ) 2,053 Support and other (9,325 ) (8,397 ) (28,769 ) (27,201 ) Income (loss) from operations 9,936 11,864 (7,548 ) (34,853 ) Interest expense, net (3,959 ) (4,607 ) (12,664 ) (14,043 ) Other income (expense), net 722 (2,027 ) (4,154 ) (3,624 ) Income (loss) before income taxes $ 6,699 $ 5,230 $ (24,366 ) $ (52,520 )

Long-term Debt (Tables)

Long-term Debt (Tables)	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Obligations	The following table is a summary of long-term debt obligations, net (in thousands): Obligations (in thousands) September 30, 2017 December 31, 2016 Senior secured second-priority lien notes (maturing December 15, 2021) $ 120,569 $ 120,569 Senior secured third-priority lien notes (maturing May 15, 2018) 28,497 28,497 Revolving line of credit (maturing August 22, 2019) 10,000 10,000 Equipment capital leases 542 3,446 Other debt — 1,415 Costs associated with issuances of debt (1) (4,283 ) (5,137 ) Total 155,325 158,790 Current portion of long-term debt and lease obligations (2) (38,819 ) (14,581 ) Non-current portion of long-term debt and lease obligations $ 116,506 $ 144,209 (1) Represents debt issuance costs presented as a direct deduction from the carrying amount of the debt liability associated with the Senior secured second-priority and Senior secured third-priority lien notes. These amounts do not include $0.4 million and $1.2 million of debt issuance costs associated with the Revolving Credit Facility as of September 30, 2017 and December 31, 2016 respectively, which are included within other assets on the balance sheet. (2) Includes $28.5 million Senior secured third-priority lien notes reclassified from long-term to current during the second quarter 2017.
Debt Instrument Redemption	On or after December 15, 2019, the Company may on one or more occasions redeem all or a part of the Second Lien Notes at the redemption prices set forth below, plus accrued and unpaid interest and special interest, if any, on the Second Lien Notes redeemed during the twelve-month period beginning on December 15th of the years indicated below: Date Percentage 2019 105.500% 2020 103.500% 2021 and thereafter 100.000%

Net Income (Loss) per Share (Ta

Net Income (Loss) per Share (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following table summarizes the computation of basic and diluted net income (loss) per common share (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Net income (loss) attributable to ION $ 4,935 $ 1,699 $ (28,848 ) $ (58,657 ) Weighted average number of common shares outstanding 11,890 11,786 11,862 11,269 Effect of dilutive stock awards 181 121 — — Weighted average number of diluted common shares outstanding 12,071 11,907 11,862 11,269 Basic net income (loss) per share $ 0.42 $ 0.14 $ (2.43 ) $ (5.21 ) Diluted net income (loss) per share $ 0.41 $ 0.14 $ (2.43 ) $ (5.21 )

Other Income (Expense), Net (Ta

Other Income (Expense), Net (Tables)	9 Months Ended
	Sep. 30, 2017
Other Income and Expenses [Abstract]
Schedule of Other Nonoperating Income (Expense)	The following table is a summary of other income (expense) , net (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Accrual for loss related to legal proceedings (Footnote 6) $ — $ — $ (5,000 ) $ — Loss on bond exchange — — — (2,182 ) Other income (expense), net 722 (2,027 ) 846 (1,442 ) Total other income (expense), net $ 722 $ (2,027 ) $ (4,154 ) $ (3,624 )

Details of Selected Balance S26

Details of Selected Balance Sheet Accounts (Tables)	9 Months Ended
	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of Inventories	Inventories The following table is a summary of inventories (in thousands): September 30, 2017 December 31, 2016 Raw materials and subassemblies $ 20,519 $ 21,454 Work-in-process 1,044 2,255 Finished goods 7,392 6,581 Reserve for excess and obsolete inventories (14,691 ) (15,049 ) Total $ 14,264 $ 15,241

Accumulated Other Comprehensi27

Accumulated Other Comprehensive Loss (Tables)	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Summary of Changes in Accumulated Other Comprehensive Loss	The following table is a summary of changes in accumulated other comprehensive loss by component (in thousands): Foreign currency translation adjustments Total Accumulated other comprehensive loss at December 31, 2016 $ (21,748 ) $ (21,748 ) Net current-period other comprehensive income 2,749 2,749 Accumulated other comprehensive loss at September 30, 2017 $ (18,999 ) $ (18,999 )

Supplemental Cash Flow Inform28

Supplemental Cash Flow Information and Non-Cash Activity (Tables)	9 Months Ended
	Sep. 30, 2017
Supplemental Cash Flow Elements [Abstract]
Summary of Non-cash Items from Investing and Financing Activities	The following table is a summary of cash paid for Interest and Income taxes and non-cash items from investing and financing activities (in thousands): Nine Months Ended September 30, 2017 2016 Cash paid during the period for: Interest $ 7,273 $ 8,819 Income taxes 3,756 2,579 Non-cash items from investing and financing activities: Investment in multi-client data library in accounts payable and accrued expenses 8,485 — Bond exchange — 10,740 (a) (a) This represents the non-cash portion of the bond exchange.

Stockholder's Equity, Stock-B29

Stockholder's Equity, Stock-Based Compensation Expense and Repurchase Plan (Tables)	9 Months Ended
	Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Stock Options Activity	The following table presents a summary of the activity related to stock options, restricted stock and restricted stock unit awards for the nine months ended September 30, 2017 : Stock Options Restricted Stock and Unit Awards Number of Shares Outstanding at December 31, 2016 847,635 285,308 Granted — 17,500 Stock options exercised/restricted stock and unit awards vested (12,500 ) (115,133 ) Cancelled/forfeited (52,396 ) (24,491 ) Outstanding at September 30, 2017 782,739 163,184
Schedule of Restricted Stock and Units Awards Activity	The following table presents a summary of the activity related to stock options, restricted stock and restricted stock unit awards for the nine months ended September 30, 2017 : Stock Options Restricted Stock and Unit Awards Number of Shares Outstanding at December 31, 2016 847,635 285,308 Granted — 17,500 Stock options exercised/restricted stock and unit awards vested (12,500 ) (115,133 ) Cancelled/forfeited (52,396 ) (24,491 ) Outstanding at September 30, 2017 782,739 163,184

Condensed Consolidating Finan30

Condensed Consolidating Financial Information (Tables)	9 Months Ended
	Sep. 30, 2017
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Condensed Balance Sheet	September 30, 2017 Balance Sheet ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 17,244 $ — $ 22,981 $ — $ 40,225 Accounts receivable, net 40 6,034 33,300 — 39,374 Unbilled receivables — 11,357 14,476 — 25,833 Inventories — 8,582 5,682 — 14,264 Prepaid expenses and other current assets 1,558 504 2,197 — 4,259 Total current assets 18,842 26,477 78,636 — 123,955 Property, plant, equipment and seismic rental equipment, net 761 8,292 46,135 — 55,188 Multi-client data library, net — 68,791 27,960 — 96,751 Investment in subsidiaries 679,958 303,996 — (983,954 ) — Goodwill — — 24,048 — 24,048 Intangible assets, net — 2,002 24 — 2,026 Intercompany receivables — — 52,655 (52,655 ) — Other assets 1,080 145 260 — 1,485 Total assets $ 700,641 $ 409,703 $ 229,718 $ (1,036,609 ) $ 303,453 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ 38,278 $ 541 $ — $ — $ 38,819 Accounts payable 2,682 19,720 2,272 — 24,674 Accrued expenses 16,325 13,458 11,091 — 40,874 Accrued multi-client data library royalties — 24,371 205 — 24,576 Deferred revenue — 2,431 8,444 — 10,875 Total current liabilities 57,285 60,521 22,012 — 139,818 Long-term debt, net of current maturities 116,506 — — — 116,506 Intercompany payables 497,658 38,708 — (536,366 ) — Other long-term liabilities 461 6,170 10,435 — 17,066 Total liabilities 671,910 105,399 32,447 (536,366 ) 273,390 Equity: Common stock 119 290,460 49,394 (339,854 ) 119 Additional paid-in capital 901,138 180,699 202,290 (382,989 ) 901,138 Accumulated earnings (deficit) (853,527 ) 233,706 42,766 (276,472 ) (853,527 ) Accumulated other comprehensive income (loss) (18,999 ) 4,385 (19,746 ) 15,361 (18,999 ) Due from ION Geophysical Corporation — (404,946 ) (78,765 ) 483,711 — Total stockholders’ equity 28,731 304,304 195,939 (500,243 ) 28,731 Noncontrolling interests — — 1,332 — 1,332 Total equity 28,731 304,304 197,271 (500,243 ) 30,063 Total liabilities and equity $ 700,641 $ 409,703 $ 229,718 $ (1,036,609 ) $ 303,453 December 31, 2016 Balance Sheet ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 23,042 $ — $ 29,610 $ — $ 52,652 Accounts receivable, net — 12,775 7,995 — 20,770 Unbilled receivables — 5,275 8,140 — 13,415 Inventories — 8,610 6,631 — 15,241 Prepaid expenses and other current assets 3,387 4,624 1,548 — 9,559 Total current assets 26,429 31,284 53,924 — 111,637 Property, plant, equipment and seismic rental equipment, net 1,745 12,369 53,374 — 67,488 Multi-client data library, net — 97,369 8,566 — 105,935 Investment in subsidiaries 660,880 257,732 — (918,612 ) — Goodwill — — 22,208 — 22,208 Intangible assets, net — 3,008 95 — 3,103 Intercompany receivables — — 32,174 (32,174 ) — Other assets 2,469 145 231 — 2,845 Total assets $ 691,523 $ 401,907 $ 170,572 $ (950,786 ) $ 313,216 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ 11,281 $ 3,166 $ 134 $ — $ 14,581 Accounts payable 2,101 19,720 5,068 — 26,889 Accrued expenses 8,579 10,016 7,645 — 26,240 Accrued multi-client data library royalties — 23,663 — — 23,663 Deferred revenue — 2,667 1,042 — 3,709 Total current liabilities 21,961 59,232 13,889 — 95,082 Long-term debt, net of current maturities 143,930 279 — — 144,209 Intercompany payables 472,276 10,155 — (482,431 ) — Other long-term liabilities 467 12,117 7,943 — 20,527 Total liabilities 638,634 81,783 21,832 (482,431 ) 259,818 Equity: Common stock 118 290,460 19,138 (309,598 ) 118 Additional paid-in capital 899,198 180,700 232,590 (413,290 ) 899,198 Accumulated earnings (deficit) (824,679 ) 216,730 (3,639 ) (213,091 ) (824,679 ) Accumulated other comprehensive income (loss) (21,748 ) 4,420 (21,787 ) 17,367 (21,748 ) Due from ION Geophysical Corporation — (372,186 ) (78,071 ) 450,257 — Total stockholders’ equity 52,889 320,124 148,231 (468,355 ) 52,889 Noncontrolling interests — — 509 — 509 Total equity 52,889 320,124 148,740 (468,355 ) 53,398 Total liabilities and equity $ 691,523 $ 401,907 $ 170,572 $ (950,786 ) $ 313,216
Condensed Income Statement	Three Months Ended September 30, 2017 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net revenues $ — $ 16,554 $ 44,541 $ — $ 61,095 Cost of sales — 19,517 11,469 — 30,986 Gross profit (loss) — (2,963 ) 33,072 — 30,109 Total operating expenses 8,349 7,856 3,968 — 20,173 Income (loss) from operations (8,349 ) (10,819 ) 29,104 — 9,936 Interest expense, net (4,054 ) 36 59 — (3,959 ) Intercompany interest, net 259 (1,603 ) 1,344 — — Equity in earnings of investments 17,097 31,565 — (48,662 ) — Other income (expense) 19 (8 ) 711 — 722 Net income (loss) before income taxes 4,972 19,171 31,218 (48,662 ) 6,699 Income tax expense 37 837 812 — 1,686 Net income 4,935 18,334 30,406 (48,662 ) 5,013 Net income attributable to noncontrolling interests — — (78 ) — (78 ) Net income (loss) attributable to ION $ 4,935 $ 18,334 $ 30,328 (48,662 ) $ 4,935 Comprehensive net income $ 5,968 $ 18,347 $ 31,351 $ (49,620 ) $ 6,046 Comprehensive income attributable to noncontrolling interest — — (78 ) — (78 ) Comprehensive net income attributable to ION $ 5,968 $ 18,347 $ 31,273 $ (49,620 ) $ 5,968 Three Months Ended September 30, 2016 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net revenues $ — $ 30,155 $ 48,467 $ — $ 78,622 Cost of sales — 22,724 24,133 — 46,857 Gross profit — 7,431 24,334 — 31,765 Total operating expenses 7,692 7,186 5,023 — 19,901 Income (loss) from operations (7,692 ) 245 19,311 — 11,864 Interest expense, net (4,583 ) (32 ) 8 — (4,607 ) Intercompany interest, net 276 (1,138 ) 862 — — Equity in earnings of investments 13,494 15,039 — (28,533 ) — Other income (expense) 245 948 (3,220 ) — (2,027 ) Net income before income taxes 1,740 15,062 16,961 (28,533 ) 5,230 Income tax expense 41 670 2,605 — 3,316 Net income 1,699 14,392 14,356 (28,533 ) 1,914 Net income attributable to noncontrolling interests — — (215 ) — (215 ) Net income attributable to ION $ 1,699 $ 14,392 $ 14,141 (28,533 ) $ 1,699 Comprehensive net income $ 616 $ 14,392 $ 13,058 $ (27,235 ) $ 831 Comprehensive income attributable to noncontrolling interest — — (215 ) — (215 ) Comprehensive net income attributable to ION $ 616 $ 14,392 $ 12,843 $ (27,235 ) $ 616 Nine Months Ended September 30, 2017 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net revenues $ — $ 44,533 $ 95,119 $ — $ 139,652 Cost of sales — 55,473 32,351 — 87,824 Gross profit (loss) — (10,940 ) 62,768 — 51,828 Total operating expenses 25,761 20,727 12,888 — 59,376 Income (loss) from operations (25,761 ) (31,667 ) 49,880 — (7,548 ) Interest expense, net (12,697 ) (60 ) 93 — (12,664 ) Intercompany interest, net 852 (4,743 ) 3,891 — — Equity in earnings of investments 13,963 49,418 — (63,381 ) — Other income (expense) (5,068 ) (348 ) 1,262 — (4,154 ) Net income (loss) before income taxes (28,711 ) 12,600 55,126 (63,381 ) (24,366 ) Income tax expense 137 (4,376 ) 7,909 — 3,670 Net income (28,848 ) 16,976 47,217 (63,381 ) (28,036 ) Net income attributable to noncontrolling interests — — (812 ) — (812 ) Net income (loss) attributable to ION $ (28,848 ) $ 16,976 46,405 $ (63,381 ) (28,848 ) Comprehensive net income (loss) $ (26,099 ) $ 16,941 $ 49,257 $ (65,386 ) $ (25,287 ) Comprehensive income attributable to noncontrolling interest — — (812 ) — (812 ) Comprehensive net income (loss) attributable to ION $ (26,099 ) $ 16,941 $ 48,445 $ (65,386 ) $ (26,099 ) Nine Months Ended September 30, 2016 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net revenues $ — $ 58,907 $ 78,532 $ — $ 137,439 Cost of sales — 67,061 42,690 — 109,751 Gross profit (loss) — (8,154 ) 35,842 — 27,688 Total operating expenses 24,894 21,687 15,960 — 62,541 Income (loss) from operations (24,894 ) (29,841 ) 19,882 — (34,853 ) Interest expense, net (13,917 ) (179 ) 53 — (14,043 ) Intercompany interest, net 727 (3,250 ) 2,523 — — Equity in earnings (losses) of investments (18,617 ) 19,163 — (546 ) — Other income (expense) (1,841 ) 771 (2,554 ) — (3,624 ) Net income (loss) before income taxes (58,542 ) (13,336 ) 19,904 (546 ) (52,520 ) Income tax expense 115 1,419 4,331 — 5,865 Net income (loss) (58,657 ) (14,755 ) 15,573 (546 ) (58,385 ) Net income attributable to noncontrolling interests — — (272 ) — (272 ) Net income (loss) applicable to ION $ (58,657 ) (14,755 ) $ 15,301 $ (546 ) $ (58,657 ) Comprehensive net income (loss) $ (63,939 ) $ (14,755 ) $ 10,019 $ 5,008 $ (63,667 ) Comprehensive income attributable to noncontrolling interest — — (272 ) — (272 ) Comprehensive net income (loss) attributable to ION $ (63,939 ) $ (14,755 ) $ 9,747 $ 5,008 $ (63,939 )
Condensed Cash Flow Statement	Nine Months Ended September 30, 2017 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 $ (2,785 ) $ 11,764 $ 1,039 $ 10,018 Cash flows from investing activities: Cash invested in multi-client data library — (7,041 ) (9,535 ) (16,576 ) Purchase of property, plant, equipment and seismic rental equipment (165 ) (775 ) (81 ) (1,021 ) Net cash used in investing activities (165 ) (7,816 ) (9,616 ) (17,597 ) Cash flows from financing activities: Payments on notes payable and long-term debt (1,018 ) (3,244 ) (58 ) (4,320 ) Intercompany lending (1,574 ) (704 ) 2,278 — Costs associated with issuance of equity (123 ) — — (123 ) Other financing activities (134 ) — — (134 ) Net cash provided by (used in) financing activities (2,849 ) (3,948 ) 2,220 (4,577 ) Effect of change in foreign currency exchange rates on cash and cash equivalents — — (271 ) (271 ) Net decrease in cash and cash equivalents (5,799 ) — (6,628 ) (12,427 ) Cash and cash equivalents at beginning of period 23,042 — 29,610 52,652 Cash and cash equivalents at end of period $ 17,243 $ — $ 22,982 $ 40,225 Nine Months Ended September 30, 2016 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 $ (31,403 ) $ 50,669 $ (16,034 ) $ 3,232 Cash flows from investing activities: Investment in multi-client data library — (10,027 ) (1,574 ) (11,601 ) Purchase of property, plant, equipment and seismic rental equipment — (567 ) — (567 ) Net cash used in investing activities — (10,594 ) (1,574 ) (12,168 ) Cash flows from financing activities: Borrowings under revolving line of credit 15,000 — — 15,000 Repurchase of common stock (964 ) — — (964 ) Payments on notes payable and long-term debt (951 ) (5,304 ) (471 ) (6,726 ) Cost associated with issuance of notes (6,638 ) — — (6,638 ) Intercompany lending 31,867 (34,771 ) 2,904 — Payment to repurchase bonds (15,000 ) — — (15,000 ) Other financing activities 13 — — 13 Net cash provided by (used in) financing activities 23,327 (40,075 ) 2,433 (14,315 ) Effect of change in foreign currency exchange rates on cash and cash equivalents — — 854 854 Net decrease in cash and cash equivalents (8,076 ) — (14,321 ) (22,397 ) Cash and cash equivalents at beginning of period 33,734 — 51,199 84,933 Cash and cash equivalents at end of period $ 25,658 $ — $ 36,878 $ 62,536

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2017USD ($)segment	Sep. 30, 2016USD ($)
Segment Reporting [Abstract]
Number of segments | segment			3
Summary of segment information
Revenues	$ 61,095	$ 78,622	$ 139,652	$ 137,439
Gross profit (loss)	$ 30,109	$ 31,765	$ 51,828	$ 27,688
Gross margin	49.00%	40.00%	37.00%	20.00%
Income (loss) from operations	$ 9,936	$ 11,864	$ (7,548)	$ (34,853)
Interest expense, net	(3,959)	(4,607)	(12,664)	(14,043)
Other income (expense), net	722	(2,027)	(4,154)	(3,624)
Income (loss) before income taxes	6,699	5,230	(24,366)	(52,520)
E&P Technology & Services
Summary of segment information
Revenues	52,054	36,037	109,246	67,673
Gross profit (loss)	$ 28,533	$ 12,888	$ 44,464	$ (418)
Gross margin	55.00%	36.00%	41.00%	(1.00%)
E&P Technology & Services | New Venture and Data Library [Member]
Summary of segment information
Revenues	$ 48,586	$ 29,903	$ 95,837	$ 48,335
E&P Technology & Services | New Venture
Summary of segment information
Revenues	43,542	8,393	70,477	16,278
E&P Technology & Services | Data Library
Summary of segment information
Revenues	5,044	21,510	25,360	32,057
E&P Technology & Services | Imaging Services
Summary of segment information
Revenues	3,468	6,134	13,409	19,338
E&P Operations Optimization
Summary of segment information
Revenues	9,041	12,601	30,406	33,349
Gross profit (loss)	$ 4,055	$ 6,866	$ 15,100	$ 16,647
Gross margin	45.00%	54.00%	50.00%	50.00%
E&P Operations Optimization | Devices
Summary of segment information
Revenues	$ 5,260	$ 8,679	$ 17,929	$ 20,664
E&P Operations Optimization | Optimization Software & Services
Summary of segment information
Revenues	3,781	3,922	12,477	12,685
Ocean Bottom Seismic Services
Summary of segment information
Revenues	0	29,984	0	36,417
Gross profit (loss)	$ (2,479)	$ 12,011	$ (7,736)	$ 11,459
Gross margin	0.00%	40.00%	0.00%	31.00%
Operating segments | E&P Technology & Services
Summary of segment information
Income (loss) from operations	$ 22,695	$ 7,259	$ 27,952	$ (16,867)
Operating segments | E&P Operations Optimization
Summary of segment information
Income (loss) from operations	998	3,682	5,569	7,162
Operating segments | Ocean Bottom Seismic Services
Summary of segment information
Income (loss) from operations	(4,432)	9,320	(12,300)	2,053
Support and other
Summary of segment information
Income (loss) from operations	$ (9,325)	$ (8,397)	$ (28,769)	$ (27,201)

Long-term Debt - Obligations (D

Long-term Debt - Obligations (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2017	Sep. 30, 2017	Dec. 31, 2016	Apr. 28, 2016
Obligations
Costs associated with issuances of debt		$ (4,283)	$ (5,137)
Total debt		155,325	158,790
Current portion of long-term debt and lease obligations		(38,819)	(14,581)
Non-current portion of long-term debt and lease obligations		116,506	144,209
Senior secured third-priority lien notes reclassified from long-term to current	$ 28,500
Senior secured notes | Senior secured second-priority lien notes (maturing December 15, 2021)
Obligations
Gross debt		120,569	120,569
Total debt				$ 120,600
Senior secured notes | Senior secured third-priority lien notes (maturing May 15, 2018)
Obligations
Gross debt		28,497	28,497
Total debt				$ 28,500
Revolving credit facility
Obligations
Gross debt		10,000	10,000
Revolving credit facility | Other assets
Obligations
Costs associated with issuances of debt		(400)	(1,200)
Equipment capital leases
Obligations
Gross debt		542	3,446
Other debt
Obligations
Gross debt		$ 0	$ 1,415

Long-term Debt - Narrative (Det

Long-term Debt - Narrative (Details)	Apr. 28, 2016USD ($)shares	Apr. 27, 2016USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Dec. 31, 2016USD ($)	Dec. 31, 2015USD ($)	May 31, 2013USD ($)
Debt Instrument [Line Items]
Cash and Cash Equivalents, at Carrying Value			$ 40,225,000	$ 62,536,000	$ 52,652,000	$ 84,933,000
Aggregate principal amount of debt			155,325,000		$ 158,790,000
Principal purchased for cash			4,320,000	$ 6,726,000
Domestic subsidiaries
Debt Instrument [Line Items]
Cash and Cash Equivalents, at Carrying Value			17,200,000
Non-domestic subsidiarieS
Debt Instrument [Line Items]
Cash and Cash Equivalents, at Carrying Value			23,000,000
Line of credit | Revolving credit facility | PNC Bank, National Association (PNC)
Debt Instrument [Line Items]
Maximum amount of certain indebtedness			$ 40,000,000
Increase in applicable margin due to amendment to Credit Facility	0.50%
Number of days prior to stated maturity borrowing capacity reduced by reserve			90 days
Maximum amount of certain permitted junior indebtedness	$ 200,000,000	$ 175,000,000
Number of days early commitment termination date and early maturity date, eliminated by amendment			90 days
Limit for multi-client liquidation component			$ 15,000,000
Current borrowing capacity			22,100,000
Indebtedness under the Credit Facility			10,000,000
Required liquidity maintained five consecutive business days			7,500,000
Required liquidity maintained any business day			6,500,000
Excess availability to borrow			$ 12,100,000
Line of credit | Revolving credit facility | PNC Bank, National Association (PNC) | Minimum
Debt Instrument [Line Items]
Fixed charge coverage ratio			1.1
Line of credit | Revolving credit facility | PNC Bank, National Association (PNC) | Subsidiary Issuer
Debt Instrument [Line Items]
Percentage of obligations secured by stock of Subsidiary Borrowers	100.00%
Line of credit | Revolving credit facility | PNC Bank, National Association (PNC) | ION International Holdings L.P.
Debt Instrument [Line Items]
Percentage of obligations secured by stock of Subsidiary Borrowers	65.00%
Line of credit | Revolving credit facility | PNC Bank, National Association (PNC) | Base Rate
Debt Instrument [Line Items]
Basis spread on variable rate for debt	3.00%	2.50%
Line of credit | Revolving credit facility | PNC Bank, National Association (PNC) | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate for debt	4.00%	3.50%
Senior secured notes
Debt Instrument [Line Items]
Stated rate on debt			8.125%
Senior secured notes | Senior secured third-priority lien notes (maturing May 15, 2018)
Debt Instrument [Line Items]
Principal amount of debt							$ 175,000,000
Stated rate on debt							8.125%
Aggregate principal amount of debt	$ 28,500,000
Amount of debt purchased	25,900,000
Principal purchased for cash	$ 15,000,000
Senior secured notes | Senior secured second-priority lien notes (maturing December 15, 2021)
Debt Instrument [Line Items]
Stated rate on debt	9.125%
Aggregate principal amount of debt	$ 120,600,000
Senior secured notes | Senior secured second-priority lien notes (maturing December 15, 2021) | Conversion Of Common Stock For Second Lien Notes
Debt Instrument [Line Items]
Debt converted for shares, issued shares | shares	1,205,477

Long-term Debt - Debt Instrumen

Long-term Debt - Debt Instrument Redemption Percentages (Details) - Senior secured notes - Senior secured second-priority lien notes (maturing December 15, 2021) - Forecast	Dec. 15, 2019
2,019
Debt Instrument [Line Items]
Redemption price percentages	105.50%
2,020
Debt Instrument [Line Items]
Redemption price percentages	103.50%
2021 and thereafter
Debt Instrument [Line Items]
Redemption price percentages	100.00%

Net Income (Loss) per Share - N

Net Income (Loss) per Share - Narrative (Details) - shares	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Number of shares issued or committed for issuance under outstanding stock options	782,739	877,569
Number of shares of restricted stock and shares reserved for restricted stock units outstanding	163,184	293,340

Net Income (Loss) per Share - R

Net Income (Loss) per Share - Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Net income (loss) attributable to ION	$ 4,935	$ 1,699	$ (28,848)	$ (58,657)
Weighted average number of common shares outstanding (in shares)	11,890	11,786	11,862	11,269
Effect of dilutive stock awards	181	121	0	0
Weighted average number of diluted common shares outstanding (in shares)	12,071	11,907	11,862	11,269
Basic net income (loss) per share (usd per share)	$ 0.42	$ 0.14	$ (2.43)	$ (5.21)
Diluted net income (loss) per share (usd per share)	$ 0.41	$ 0.14	$ (2.43)	$ (5.21)

Income Taxes (Details)

Income Taxes (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Operating Loss Carryforwards [Line Items]
Effective income tax rates	25.20%	63.40%	(15.10%)	(11.20%)
Income tax expense	$ 1,686,000	$ 3,316,000	$ 3,670,000	$ 5,865,000
Unrecognized tax benefits	1,300,000		1,300,000
United States Tax Authority
Operating Loss Carryforwards [Line Items]
Net deferred tax assets	$ 0		$ 0

Litigation (Details)

Litigation (Details) - WesternGeco

May 16, 2017USD ($)

Nov. 25, 2016USD ($)

May 31, 2014USD ($)

Apr. 30, 2014USD ($)

Oct. 31, 2013USD ($)

Aug. 31, 2012USD ($)

Jun. 30, 2009Patent

Sep. 30, 2018USD ($)

Jun. 30, 2018USD ($)

Mar. 31, 2018USD ($)

Dec. 31, 2017USD ($)

Sep. 30, 2017USD ($)

Dec. 31, 2017USD ($)

Sep. 30, 2018USD ($)

Jul. 02, 2015USD ($)

Nov. 14, 2016USD ($)

Nov. 13, 2016USD ($)

Loss Contingencies [Line Items]

Number of patent apparatus claims contained | Patent

4

Pending Litigation

Loss Contingencies [Line Items]

Damages awarded

$ 123,800,000

$ 9,400,000

$ 73,100,000

$ 105,900,000

Reduction in damages award in the case

$ (3,000,000)

Prejudgment interest expense accrued

$ 10,900,000

Amount of appeal bond

$ 65,000,000

$ 120,000,000

Amount of royalty damages paid

$ 20,800,000

Pending Litigation | Lost Royalties

Loss Contingencies [Line Items]

Damages awarded

$ 12,500,000

Pending Litigation | Lost Profits

Loss Contingencies [Line Items]

Damages awarded

$ 93,400,000

Settled Litigation

Loss Contingencies [Line Items]

Damages awarded

$ 5,000,000

Amount of royalty damages paid

$ 625,000

Settled Litigation | Forecast

Loss Contingencies [Line Items]

Amount of royalty damages paid

$ 1,250,000

$ 1,250,000

$ 1,250,000

$ 625,000

$ 1,250,000

$ 3,750,000

Other Income (Expense), Net (De

Other Income (Expense), Net (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Other Income and Expenses [Abstract]
Accrual for loss related to legal proceedings (Footnote 6)	$ 0	$ 0	$ (5,000)	$ 0
Loss on bond exchange	0	0	0	(2,182)
Other income (expense), net	722	(2,027)	846	(1,442)
Total other income (expense), net	$ 722	$ (2,027)	$ (4,154)	$ (3,624)

Details of Selected Balance S40

Details of Selected Balance Sheet Accounts - Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Raw materials and subassemblies	$ 20,519	$ 21,454
Work-in-process	1,044	2,255
Finished goods	7,392	6,581
Reserve for excess and obsolete inventories	(14,691)	(15,049)
Total	$ 14,264	$ 15,241

Accumulated Other Comprehensi41

Accumulated Other Comprehensive Loss (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017USD ($)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive loss at December 31, 2016	$ 53,398
Net current-period other comprehensive income	2,749
Accumulated other comprehensive loss at September 30, 2017	30,063
Foreign currency translation adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive loss at December 31, 2016	(21,748)
Net current-period other comprehensive income	2,749
Accumulated other comprehensive loss at September 30, 2017	(18,999)
AOCI attributable to parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive loss at December 31, 2016	(21,748)
Accumulated other comprehensive loss at September 30, 2017	$ (18,999)

Supplemental Cash Flow Inform42

Supplemental Cash Flow Information and Non-Cash Activity (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash paid during the period for:
Interest	$ 7,273	$ 8,819
Income taxes	3,756	2,579
Non-cash items from investing and financing activities:
Investment in multi-client data library in accounts payable and accrued expenses	8,485	0
Bond exchange	$ 0	$ 10,740

Fair Value of Financial Instr43

Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	Sep. 30, 2017	Dec. 31, 2016
Carrying amounts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of long-term debt	$ 159.6	$ 163.9
Fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of long-term debt	$ 139.8	$ 114.8

Stockholder's Equity, Stock-B44

Stockholder's Equity, Stock-Based Compensation Expense and Repurchase Plan - Narrative (Details) - USD ($)	9 Months Ended		23 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Dec. 22, 2016	Nov. 04, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Maximum number of shares available for sale through the ATM Program				20,000,000
Number of shares issued or committed for issuance under outstanding stock options	782,739	877,569	782,739
Number of shares of restricted stock and shares reserved for restricted stock units outstanding	163,184	293,340	163,184
Stock-based compensation expense	$ 1,694,000	$ 2,512,000
Stock repurchase amount, authorized amount					$ 25,000,000
Shares repurchased, value			$ 3,000,000
Number of shares repurchased			451,792
Repurchased shares, average price per share (usd per share)			$ 6.41

Stockholder's Equity, Stock-B45

Stockholder's Equity, Stock-Based Compensation Expense and Repurchase Plan - Activity Related to Stock Options, Restricted Stock and Restricted Stock Unit Awards (Details)	9 Months Ended
	Sep. 30, 2017shares
Stock Options
Ending balance	782,739
Restricted Stock and Unit Awards
Cancelled/forfeited	(24,491)
Stock Options
Stock Options
Beginning balance	847,635
Granted	0
Stock options exercised	(12,500)
Cancelled/forfeited	(52,396)
Ending balance	782,739
Restricted Stock and Unit Awards
Restricted Stock and Unit Awards
Beginning balance	285,308
Granted	17,500
Restricted stock/unit awards vested	(115,133)
Ending balance	163,184

Condensed Consolidating Finan46

Condensed Consolidating Financial Information - Balance Sheet (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 40,225	$ 52,652	$ 62,536	$ 84,933
Accounts receivable, net	39,374	20,770
Unbilled receivables	25,833	13,415
Inventories	14,264	15,241
Prepaid expenses and other current assets	4,259	9,559
Total current assets	123,955	111,637
Property, plant, equipment and seismic rental equipment, net	55,188	67,488
Multi-client data library, net	96,751	105,935
Investment in subsidiaries	0	0
Goodwill	24,048	22,208
Intangible assets, net	2,026	3,103
Intercompany receivables	0	0
Other assets	1,485	2,845
Total assets	303,453	313,216
Current liabilities:
Current maturities of long-term debt	38,819	14,581
Accounts payable	24,674	26,889
Accrued expenses	40,874	26,240
Accrued multi-client data library royalties	24,576	23,663
Deferred revenue	10,875	3,709
Total current liabilities	139,818	95,082
Long-term debt, net of current maturities	116,506	144,209
Intercompany payables	0	0
Other long-term liabilities	17,066	20,527
Total liabilities	273,390	259,818
Equity:
Common stock	119	118
Additional paid-in capital	901,138	899,198
Accumulated earnings (deficit)	(853,527)	(824,679)
Accumulated other comprehensive income (loss)	(18,999)	(21,748)
Due from ION Geophysical Corporation	0	0
Total stockholders’ equity	28,731	52,889
Noncontrolling interests	1,332	509
Total equity	30,063	53,398
Total liabilities and equity	303,453	313,216
ION Geophysical Corporation
Current assets:
Cash and cash equivalents	17,243	23,042	25,658	33,734
The Guarantors
Current assets:
Cash and cash equivalents	0	0	0	0
All Other Subsidiaries
Current assets:
Cash and cash equivalents	22,982	29,610	$ 36,878	$ 51,199
Reportable Legal Entities | ION Geophysical Corporation
Current assets:
Cash and cash equivalents	17,244	23,042
Accounts receivable, net	40	0
Unbilled receivables	0	0
Inventories	0	0
Prepaid expenses and other current assets	1,558	3,387
Total current assets	18,842	26,429
Property, plant, equipment and seismic rental equipment, net	761	1,745
Multi-client data library, net	0	0
Investment in subsidiaries	679,958	660,880
Goodwill	0	0
Intangible assets, net	0	0
Intercompany receivables	0	0
Other assets	1,080	2,469
Total assets	700,641	691,523
Current liabilities:
Current maturities of long-term debt	38,278	11,281
Accounts payable	2,682	2,101
Accrued expenses	16,325	8,579
Accrued multi-client data library royalties	0	0
Deferred revenue	0	0
Total current liabilities	57,285	21,961
Long-term debt, net of current maturities	116,506	143,930
Intercompany payables	497,658	472,276
Other long-term liabilities	461	467
Total liabilities	671,910	638,634
Equity:
Common stock	119	118
Additional paid-in capital	901,138	899,198
Accumulated earnings (deficit)	(853,527)	(824,679)
Accumulated other comprehensive income (loss)	(18,999)	(21,748)
Due from ION Geophysical Corporation	0	0
Total stockholders’ equity	28,731	52,889
Noncontrolling interests	0	0
Total equity	28,731	52,889
Total liabilities and equity	700,641	691,523
Reportable Legal Entities | The Guarantors
Current assets:
Cash and cash equivalents	0	0
Accounts receivable, net	6,034	12,775
Unbilled receivables	11,357	5,275
Inventories	8,582	8,610
Prepaid expenses and other current assets	504	4,624
Total current assets	26,477	31,284
Property, plant, equipment and seismic rental equipment, net	8,292	12,369
Multi-client data library, net	68,791	97,369
Investment in subsidiaries	303,996	257,732
Goodwill	0	0
Intangible assets, net	2,002	3,008
Intercompany receivables	0	0
Other assets	145	145
Total assets	409,703	401,907
Current liabilities:
Current maturities of long-term debt	541	3,166
Accounts payable	19,720	19,720
Accrued expenses	13,458	10,016
Accrued multi-client data library royalties	24,371	23,663
Deferred revenue	2,431	2,667
Total current liabilities	60,521	59,232
Long-term debt, net of current maturities	0	279
Intercompany payables	38,708	10,155
Other long-term liabilities	6,170	12,117
Total liabilities	105,399	81,783
Equity:
Common stock	290,460	290,460
Additional paid-in capital	180,699	180,700
Accumulated earnings (deficit)	233,706	216,730
Accumulated other comprehensive income (loss)	4,385	4,420
Due from ION Geophysical Corporation	(404,946)	(372,186)
Total stockholders’ equity	304,304	320,124
Noncontrolling interests	0	0
Total equity	304,304	320,124
Total liabilities and equity	409,703	401,907
Reportable Legal Entities | All Other Subsidiaries
Current assets:
Cash and cash equivalents	22,981	29,610
Accounts receivable, net	33,300	7,995
Unbilled receivables	14,476	8,140
Inventories	5,682	6,631
Prepaid expenses and other current assets	2,197	1,548
Total current assets	78,636	53,924
Property, plant, equipment and seismic rental equipment, net	46,135	53,374
Multi-client data library, net	27,960	8,566
Investment in subsidiaries	0	0
Goodwill	24,048	22,208
Intangible assets, net	24	95
Intercompany receivables	52,655	32,174
Other assets	260	231
Total assets	229,718	170,572
Current liabilities:
Current maturities of long-term debt	0	134
Accounts payable	2,272	5,068
Accrued expenses	11,091	7,645
Accrued multi-client data library royalties	205	0
Deferred revenue	8,444	1,042
Total current liabilities	22,012	13,889
Long-term debt, net of current maturities	0	0
Intercompany payables	0	0
Other long-term liabilities	10,435	7,943
Total liabilities	32,447	21,832
Equity:
Common stock	49,394	19,138
Additional paid-in capital	202,290	232,590
Accumulated earnings (deficit)	42,766	(3,639)
Accumulated other comprehensive income (loss)	(19,746)	(21,787)
Due from ION Geophysical Corporation	(78,765)	(78,071)
Total stockholders’ equity	195,939	148,231
Noncontrolling interests	1,332	509
Total equity	197,271	148,740
Total liabilities and equity	229,718	170,572
Consolidating Adjustments
Current assets:
Cash and cash equivalents	0	0
Accounts receivable, net	0	0
Unbilled receivables	0	0
Inventories	0	0
Prepaid expenses and other current assets	0	0
Total current assets	0	0
Property, plant, equipment and seismic rental equipment, net	0	0
Multi-client data library, net	0	0
Investment in subsidiaries	(983,954)	(918,612)
Goodwill	0	0
Intangible assets, net	0	0
Intercompany receivables	(52,655)	(32,174)
Other assets	0	0
Total assets	(1,036,609)	(950,786)
Current liabilities:
Current maturities of long-term debt	0	0
Accounts payable	0	0
Accrued expenses	0	0
Accrued multi-client data library royalties	0	0
Deferred revenue	0	0
Total current liabilities	0	0
Long-term debt, net of current maturities	0	0
Intercompany payables	(536,366)	(482,431)
Other long-term liabilities	0	0
Total liabilities	(536,366)	(482,431)
Equity:
Common stock	(339,854)	(309,598)
Additional paid-in capital	(382,989)	(413,290)
Accumulated earnings (deficit)	(276,472)	(213,091)
Accumulated other comprehensive income (loss)	15,361	17,367
Due from ION Geophysical Corporation	483,711	450,257
Total stockholders’ equity	(500,243)	(468,355)
Noncontrolling interests	0	0
Total equity	(500,243)	(468,355)
Total liabilities and equity	$ (1,036,609)	$ (950,786)

Condensed Consolidating Finan47

Condensed Consolidating Financial Information - Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Condensed Income Statements, Captions [Line Items]
Net revenues	$ 61,095	$ 78,622	$ 139,652	$ 137,439
Cost of sales	30,986	46,857	87,824	109,751
Gross profit	30,109	31,765	51,828	27,688
Total operating expenses	20,173	19,901	59,376	62,541
Income (loss) from operations	9,936	11,864	(7,548)	(34,853)
Interest expense, net	(3,959)	(4,607)	(12,664)	(14,043)
Intercompany interest, net	0	0	0	0
Equity in earnings (losses) of investments	0	0	0	0
Other income (expense)	722	(2,027)	(4,154)	(3,624)
Income (loss) before income taxes	6,699	5,230	(24,366)	(52,520)
Income tax expense	1,686	3,316	3,670	5,865
Net income (loss)	5,013	1,914	(28,036)	(58,385)
Net income attributable to noncontrolling interests	(78)	(215)	(812)	(272)
Net income (loss) attributable to ION	4,935	1,699	(28,848)	(58,657)
Comprehensive net income (loss)	6,046	831	(25,287)	(63,667)
Comprehensive (income) attributable to noncontrolling interest	(78)	(215)	(812)	(272)
Comprehensive net income (loss) attributable to ION	5,968	616	(26,099)	(63,939)
Reportable Legal Entities | ION Geophysical Corporation
Condensed Income Statements, Captions [Line Items]
Net revenues	0	0	0	0
Cost of sales	0	0	0	0
Gross profit	0	0	0	0
Total operating expenses	8,349	7,692	25,761	24,894
Income (loss) from operations	(8,349)	(7,692)	(25,761)	(24,894)
Interest expense, net	(4,054)	(4,583)	(12,697)	(13,917)
Intercompany interest, net	259	276	852	727
Equity in earnings (losses) of investments	17,097	13,494	13,963	(18,617)
Other income (expense)	19	245	(5,068)	(1,841)
Income (loss) before income taxes	4,972	1,740	(28,711)	(58,542)
Income tax expense	37	41	137	115
Net income (loss)	4,935	1,699	(28,848)	(58,657)
Net income attributable to noncontrolling interests	0	0	0	0
Net income (loss) attributable to ION	4,935	1,699	(28,848)	(58,657)
Comprehensive net income (loss)	5,968	616	(26,099)	(63,939)
Comprehensive (income) attributable to noncontrolling interest	0	0	0	0
Comprehensive net income (loss) attributable to ION	5,968	616	(26,099)	(63,939)
Reportable Legal Entities | The Guarantors
Condensed Income Statements, Captions [Line Items]
Net revenues	16,554	30,155	44,533	58,907
Cost of sales	19,517	22,724	55,473	67,061
Gross profit	(2,963)	7,431	(10,940)	(8,154)
Total operating expenses	7,856	7,186	20,727	21,687
Income (loss) from operations	(10,819)	245	(31,667)	(29,841)
Interest expense, net	36	(32)	(60)	(179)
Intercompany interest, net	(1,603)	(1,138)	(4,743)	(3,250)
Equity in earnings (losses) of investments	31,565	15,039	49,418	19,163
Other income (expense)	(8)	948	(348)	771
Income (loss) before income taxes	19,171	15,062	12,600	(13,336)
Income tax expense	837	670	(4,376)	1,419
Net income (loss)	18,334	14,392	16,976	(14,755)
Net income attributable to noncontrolling interests	0	0	0	0
Net income (loss) attributable to ION	18,334	14,392	16,976	(14,755)
Comprehensive net income (loss)	18,347	14,392	16,941	(14,755)
Comprehensive (income) attributable to noncontrolling interest	0	0	0	0
Comprehensive net income (loss) attributable to ION	18,347	14,392	16,941	(14,755)
Reportable Legal Entities | All Other Subsidiaries
Condensed Income Statements, Captions [Line Items]
Net revenues	44,541	48,467	95,119	78,532
Cost of sales	11,469	24,133	32,351	42,690
Gross profit	33,072	24,334	62,768	35,842
Total operating expenses	3,968	5,023	12,888	15,960
Income (loss) from operations	29,104	19,311	49,880	19,882
Interest expense, net	59	8	93	53
Intercompany interest, net	1,344	862	3,891	2,523
Equity in earnings (losses) of investments	0	0	0	0
Other income (expense)	711	(3,220)	1,262	(2,554)
Income (loss) before income taxes	31,218	16,961	55,126	19,904
Income tax expense	812	2,605	7,909	4,331
Net income (loss)	30,406	14,356	47,217	15,573
Net income attributable to noncontrolling interests	(78)	(215)	(812)	(272)
Net income (loss) attributable to ION	30,328	14,141	46,405	15,301
Comprehensive net income (loss)	31,351	13,058	49,257	10,019
Comprehensive (income) attributable to noncontrolling interest	(78)	(215)	(812)	(272)
Comprehensive net income (loss) attributable to ION	31,273	12,843	48,445	9,747
Consolidating Adjustments
Condensed Income Statements, Captions [Line Items]
Net revenues	0	0	0	0
Cost of sales	0	0	0	0
Gross profit	0	0	0	0
Total operating expenses	0	0	0	0
Income (loss) from operations	0	0	0	0
Interest expense, net	0	0	0	0
Intercompany interest, net	0	0	0	0
Equity in earnings (losses) of investments	(48,662)	(28,533)	(63,381)	(546)
Other income (expense)	0	0	0	0
Income (loss) before income taxes	(48,662)	(28,533)	(63,381)	(546)
Income tax expense	0	0	0	0
Net income (loss)	(48,662)	(28,533)	(63,381)	(546)
Net income attributable to noncontrolling interests	0	0	0	0
Net income (loss) attributable to ION	(48,662)	(28,533)	(63,381)	(546)
Comprehensive net income (loss)	(49,620)	(27,235)	(65,386)	5,008
Comprehensive (income) attributable to noncontrolling interest	0	0	0	0
Comprehensive net income (loss) attributable to ION	$ (49,620)	$ (27,235)	$ (65,386)	$ 5,008

Condensed Consolidating Finan48

Condensed Consolidating Financial Information - Cash Flow (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$ 10,018	$ 3,232
Cash flows from investing activities:
Cash invested in multi-client data library	(16,576)	(11,601)
Purchase of property, plant, equipment and seismic rental equipment	(1,021)	(567)
Net cash used in investing activities	(17,597)	(12,168)
Cash flows from financing activities:
Borrowings under revolving line of credit	0	15,000
Repurchase of common stock	0	(964)
Payments on notes payable and long-term debt	(4,320)	(6,726)
Cost associated with issuance of notes	0	(6,638)
Intercompany lending	0	0
Costs associated with issuance of equity	(123)	0
Payment to repurchase bonds	0	(15,000)
Other financing activities	(134)	13
Net cash used in financing activities	(4,577)	(14,315)
Effect of change in foreign currency exchange rates on cash and cash equivalents	(271)	854
Net decrease in cash and cash equivalents	(12,427)	(22,397)
Cash and cash equivalents at beginning of period	52,652	84,933
Cash and cash equivalents at end of period	40,225	62,536
ION Geophysical Corporation
Cash flows from operating activities:
Net cash provided by (used in) operating activities	(2,785)	(31,403)
Cash flows from investing activities:
Cash invested in multi-client data library	0	0
Purchase of property, plant, equipment and seismic rental equipment	(165)	0
Net cash used in investing activities	(165)	0
Cash flows from financing activities:
Borrowings under revolving line of credit		15,000
Repurchase of common stock		(964)
Payments on notes payable and long-term debt	(1,018)	(951)
Cost associated with issuance of notes		(6,638)
Intercompany lending	(1,574)	31,867
Costs associated with issuance of equity	(123)
Payment to repurchase bonds		(15,000)
Other financing activities	(134)	13
Net cash used in financing activities	(2,849)	23,327
Effect of change in foreign currency exchange rates on cash and cash equivalents	0	0
Net decrease in cash and cash equivalents	(5,799)	(8,076)
Cash and cash equivalents at beginning of period	23,042	33,734
Cash and cash equivalents at end of period	17,243	25,658
The Guarantors
Cash flows from operating activities:
Net cash provided by (used in) operating activities	11,764	50,669
Cash flows from investing activities:
Cash invested in multi-client data library	(7,041)	(10,027)
Purchase of property, plant, equipment and seismic rental equipment	(775)	(567)
Net cash used in investing activities	(7,816)	(10,594)
Cash flows from financing activities:
Borrowings under revolving line of credit		0
Repurchase of common stock		0
Payments on notes payable and long-term debt	(3,244)	(5,304)
Cost associated with issuance of notes		0
Intercompany lending	(704)	(34,771)
Costs associated with issuance of equity	0
Payment to repurchase bonds		0
Other financing activities	0	0
Net cash used in financing activities	(3,948)	(40,075)
Effect of change in foreign currency exchange rates on cash and cash equivalents	0	0
Net decrease in cash and cash equivalents	0	0
Cash and cash equivalents at beginning of period	0	0
Cash and cash equivalents at end of period	0	0
All Other Subsidiaries
Cash flows from operating activities:
Net cash provided by (used in) operating activities	1,039	(16,034)
Cash flows from investing activities:
Cash invested in multi-client data library	(9,535)	(1,574)
Purchase of property, plant, equipment and seismic rental equipment	(81)	0
Net cash used in investing activities	(9,616)	(1,574)
Cash flows from financing activities:
Borrowings under revolving line of credit		0
Repurchase of common stock		0
Payments on notes payable and long-term debt	(58)	(471)
Cost associated with issuance of notes		0
Intercompany lending	2,278	2,904
Costs associated with issuance of equity	0
Payment to repurchase bonds		0
Other financing activities	0	0
Net cash used in financing activities	2,220	2,433
Effect of change in foreign currency exchange rates on cash and cash equivalents	(271)	854
Net decrease in cash and cash equivalents	(6,628)	(14,321)
Cash and cash equivalents at beginning of period	29,610	51,199
Cash and cash equivalents at end of period	22,982	$ 36,878
Reportable Legal Entities | ION Geophysical Corporation
Cash flows from financing activities:
Cash and cash equivalents at beginning of period	23,042
Cash and cash equivalents at end of period	17,244
Reportable Legal Entities | The Guarantors
Cash flows from financing activities:
Cash and cash equivalents at beginning of period	0
Cash and cash equivalents at end of period	0
Reportable Legal Entities | All Other Subsidiaries
Cash flows from financing activities:
Cash and cash equivalents at beginning of period	29,610
Cash and cash equivalents at end of period	$ 22,981