Ion Geophysical (IOGPQ) 10-Q 2 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 30, 2018
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	Jun. 30, 2018
Amendment Flag	false
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		14,002,999

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Current assets:
Cash and cash equivalents	$ 44,349	$ 52,056	$ 43,272
Accounts receivable, net	15,375	19,478
Unbilled receivables	15,046	37,304
Inventories	14,925	14,508
Prepaid expenses and other current assets	5,961	7,643
Total current assets	95,656	130,989
Deferred income tax asset	3,614	1,753
Property, plant, equipment and seismic rental equipment, net	48,442	52,153
Multi-client data library, net	82,576	89,300
Goodwill	23,543	24,089
Intangible assets, net	1,082	1,666
Other assets	731	1,119
Total assets	255,644	301,069
Current liabilities:
Current maturities of long-term debt	459	40,024
Accounts payable	26,173	24,951
Accrued expenses	28,936	38,697
Accrued multi-client data library royalties	27,988	27,035
Deferred revenue	8,402	8,910
Total current liabilities	91,958	139,617
Long-term debt, net of current maturities	117,159	116,720
Other long-term liabilities	12,606	13,926
Total liabilities	221,723	270,263
Equity:
Common stock, $0.01 par value; authorized 26,666,667 shares; outstanding 14,002,999 and 12,019,701 shares at June 30, 2018 and December 31, 2017, respectively	140	120
Additional paid-in capital	951,349	903,247
Accumulated deficit	(899,213)	(854,921)
Accumulated other comprehensive loss	(19,634)	(18,879)
Total stockholders’ equity	32,642	29,567
Noncontrolling interest	1,279	1,239
Total equity	33,921	30,806
Total liabilities and equity	$ 255,644	$ 301,069

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
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	14,002,999	12,019,701

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net revenues	$ 24,743	$ 46,001	$ 58,251	$ 78,557
Cost of services and products	26,260	30,383	52,915	56,838
Gross profit (loss)	(1,517)	15,618	5,336	21,719
Operating expenses:
Research, development and engineering	4,259	4,107	8,514	7,602
Marketing and sales	6,007	4,931	11,105	9,417
General, administrative and other operating expenses	10,736	10,152	20,876	22,184
Total operating expenses	21,002	19,190	40,495	39,203
Loss from operations	(22,519)	(3,572)	(35,159)	(17,484)
Interest expense, net	(2,911)	(4,241)	(6,747)	(8,705)
Other income (expense), net	84	192	(707)	(4,876)
Loss before income taxes	(25,346)	(7,621)	(42,613)	(31,065)
Income tax expense	154	2,402	1,226	1,984
Net loss	(25,500)	(10,023)	(43,839)	(33,049)
Net income attributable to noncontrolling interest	(366)	(418)	(453)	(734)
Net loss attributable to ION	$ (25,866)	$ (10,441)	$ (44,292)	$ (33,783)
Net loss per share:
Basic (usd per share)	$ (1.86)	$ (0.88)	$ (3.31)	$ (2.85)
Diluted (usd per share)	$ (1.86)	$ (0.88)	$ (3.31)	$ (2.85)
Weighted average number of common shares outstanding:
Basic, in shares	13,928	11,875	13,374	11,847
Diluted, in shares	13,928	11,875	13,374	11,847
Service
Net revenues	$ 15,752	$ 34,454	$ 40,838	$ 58,282
Cost of services and products	22,033	24,827	44,362	47,126
Product
Net revenues	8,991	11,547	17,413	20,275
Cost of services and products	$ 4,227	$ 5,556	$ 8,553	$ 9,712

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net loss	$ (25,500)	$ (10,023)	$ (43,839)	$ (33,049)
Other comprehensive loss, net of taxes, as appropriate:
Foreign currency translation adjustments	(2,580)	1,199	(755)	1,716
Comprehensive net loss	(28,080)	(8,824)	(44,594)	(31,333)
Comprehensive (income) loss, attributable to noncontrolling interest	(366)	(418)	(453)	(734)
Comprehensive net loss attributable to ION	$ (28,446)	$ (9,242)	$ (45,047)	$ (32,067)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net loss	$ (43,839)	$ (33,049)
Adjustments to reconcile net loss to cash (used in) provided by operating activities:
Depreciation and amortization (other than multi-client data library)	4,778	9,030
Amortization of multi-client data library	19,557	21,933
Stock-based compensation expense	2,043	1,169
Accrual for loss contingency related to legal proceedings	0	5,000
Deferred income taxes	(1,866)	(932)
Change in operating assets and liabilities:
Accounts receivable	3,896	2,075
Unbilled receivables	24,013	(5,542)
Inventories	(445)	440
Accounts payable, accrued expenses and accrued royalties	(10,629)	(6,059)
Deferred revenue	(445)	5,521
Other assets and liabilities	2,733	3,905
Net cash (used in) provided by operating activities	(204)	3,491
Cash flows from investing activities:
Cash invested in multi-client data library	(13,782)	(8,482)
Purchase of property, plant, equipment and seismic rental assets	(424)	(915)
Net cash used in investing activities	(14,206)	(9,397)
Cash flows from financing activities:
Payments under revolving line of credit	(10,000)	0
Payments on notes payable and long-term debt	(29,699)	(3,157)
Net proceeds from issuance of stock	47,219	0
Dividend payment to non-controlling interest	(200)	0
Other financing activities	(881)	(296)
Net cash provided by (used in) financing activities	6,439	(3,453)
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash	264	(169)
Net decrease in cash, cash equivalents and restricted cash	(7,707)	(9,528)
Cash, cash equivalents and restricted cash at beginning of period	52,419	53,433
Cash, cash equivalents and restricted cash at end of period	$ 44,712	$ 43,905

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Restricted Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 44,349	$ 52,056	$ 43,272
Total cash, cash equivalents, and restricted cash shown in statement of cash flows	44,712	$ 52,419	43,905	$ 53,433
Prepaid expenses and other current assets
Restricted Cash and Cash Equivalents [Abstract]
Restricted cash	60		330
Other long-term assets
Restricted Cash and Cash Equivalents [Abstract]
Restricted cash	$ 303		$ 303

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2018
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, 2017 has been derived from the Company’s audited consolidated financial statements at that date. The condensed consolidated balance sheet at June 30, 2018, and the condensed consolidated statements of operations and comprehensive income (loss) for the three and six months ended June 30, 2018 and 2017 and the condensed consolidated statements of cash flows for the six months ended June 30, 2018 and 2017, 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 six months ended June 30, 2018 , are not necessarily indicative of the operating results for a full year or of future operations. The Company’s financial statements reflect a non-redeemable noncontrolling interest in a majority-owned affiliate which is reported as a separate component of equity in “Noncontrolling interest” 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 as amended for the year ended December 31, 2017 .

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2018
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In February 2016, the Financials Account Standards Board (“FASB”) issued Accounting Standards Update (“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 will adopt ASU 2016-02 on January 1, 2019. The Company is currently evaluating its operating leases related to offices, processing centers, warehouse spaces and, to a lesser extent, certain equipment. The Company expects the recording of these leases as right-of-use assets and liabilities will result in a material impact on its consolidated balance sheet. However, the Company expects the income statement recognition to appear similar to its current methodology. On January 1, 2018, the Company adopted FASB Accounting Standard Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers” and all the related amendments using the modified retrospective method. The adoption did not have a material impact to the Company’s revenue recognition policy under the previous standard (ASC 605) and adoption of the new standard, ASC 606, did not result in an adjustment to the Company’s beginning retained earnings balance. On January 1, 2018, the Company adopted ASU 2016-18, Statement of Cash Flows - “ Restricted Cash (a consensus of the FASB Emerging Issues Task Force) (ASU 2016-18)” , using a retrospective transition method to each period presented. The new standard no longer requires the Company to present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. Adoption of the new standard resulted in a decrease of $0.1 million in net cash provided by operating activities as previously reported for the six months ended June 30, 2017 . See the consolidated statement of cash flows above which includes a reconciliation of cash and cash equivalents to total cash, cash equivalents, and restricted cash.

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Segment Information	Segment Information The Company evaluates and reviews its results based on three business segments: E&P Technology & Services, Operations Optimization (formerly referred to as E&P Operations Optimization), and Ocean Bottom Integrated Technologies (formerly referred to as 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net revenues: E&P Technology & Services: New Venture $ 8,125 $ 19,986 $ 21,851 $ 26,935 Data Library 1,725 9,710 7,673 20,316 Total multi-client revenues 9,850 29,696 29,524 47,251 Imaging Services 5,338 4,186 10,232 9,941 Total 15,188 33,882 39,756 57,192 Operations Optimization: Devices 4,761 7,679 8,919 12,669 Optimization Software & Services 4,794 4,440 9,576 8,696 Total 9,555 12,119 18,495 21,365 Ocean Bottom Integrated Technologies — — — — Total $ 24,743 $ 46,001 $ 58,251 $ 78,557 Gross profit (loss): E&P Technology & Services $ (4,856 ) $ 11,921 $ (513 ) $ 15,931 Operations Optimization 4,933 6,258 9,244 11,045 Ocean Bottom Integrated Technologies (1,594 ) (2,561 ) (3,395 ) (5,257 ) Total $ (1,517 ) $ 15,618 $ 5,336 $ 21,719 Gross margin: E&P Technology & Services (32 )% 35 % (1 )% 28 % Operations Optimization 52 % 52 % 50 % 52 % Ocean Bottom Integrated Technologies — % — % — % — % Total (6 )% 34 % 9 % 28 % Income (loss) from operations: E&P Technology & Services $ (10,206 ) $ 6,353 $ (11,000 ) $ 5,257 Operations Optimization 1,243 3,022 2,029 4,571 Ocean Bottom Integrated Technologies (2,926 ) (3,860 ) (5,755 ) (7,868 ) Support and other (10,630 ) (9,087 ) (20,433 ) (19,444 ) Loss from operations (22,519 ) (3,572 ) (35,159 ) (17,484 ) Interest expense, net (2,911 ) (4,241 ) (6,747 ) (8,705 ) Other income (expense), net 84 192 (707 ) (4,876 ) Loss before income taxes $ (25,346 ) $ (7,621 ) $ (42,613 ) $ (31,065 )

Revenue From Contracts With Cus

Revenue From Contracts With Customers	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Revenue From Contracts with Customers	Revenue From Contracts With Customers The Company derives revenue from the sale or license of (i) multi-client and proprietary data, imaging services and E&P Advisors consulting services within its E&P Technologies & Services segment; (ii) seismic data acquisition systems and other seismic equipment, (iii) seismic command and control software systems and software solutions for operations management within its Operations Optimization segment; and (iv) a full suite of technology and services within its Ocean Bottom Integrated Technologies segment. All revenues of the E&P Technology & Services and Ocean Bottom Integrated Technologies segments and the services component of revenues for the Optimization Software & Services group as part of the Operations Optimization segment are classified as services revenues. All other revenues are classified as product revenues. The Company uses a five-step model to determine proper revenue recognition from customer contracts. Revenue is recognized when (i) a contract is approved by all parties; (ii) the goods or services promised in the contract are identified; (iii) the consideration we expect to receive in exchange for the goods or services promised is determined; (iv) the consideration is allocated to the goods and services in the contract; and (v) control of the promised goods or services is transferred to the customer. The Company does not disclose the value of contractual future performance obligations such as backlog with an original expected length of one year or less within the footnotes. Multi-client and Proprietary Surveys, and Imaging and E&P Advisors Services - As multi-client seismic surveys are being designed, acquired or processed (the “New Venture” phase), the Company enters into non-exclusive licensing arrangements with its customers, who pre-fund or underwrite these programs in part. License revenues from these surveys are recognized during the New Venture phase as the seismic data is acquired and/or processed on a proportionate basis as work is performed and control is transferred to the customer. Under this method, the Company recognizes revenue based upon quantifiable measures of progress, such as kilometers acquired or surveys of performance completed to date. Upon completion of a multi-client seismic survey, it is considered “on-the-shelf,” and licenses to the survey data are granted to customers on a non-exclusive basis. The Company also performs seismic surveys, imaging and other services under contracts to specific customers, whereby the seismic data is owned by those customers. The Company recognizes revenue as the seismic data is acquired and/or processed on a proportionate basis as work is performed. The Company uses quantifiable measures of progress consistent with its multi-client seismic surveys. Acquisition Systems and Other Seismic Equipment - For sales of seismic data acquisition systems and other seismic equipment, the Company recognizes revenue when control of the goods has transferred to the customer. Transfer of control generally occurs when (i) the Company has a present right to payment; (ii) the customer has legal title to the asset; (iii) the Company has transferred physical possession of the asset; (iv) the customer has significant rewards of ownership; and/or (v) the customer has accepted the asset. Software - Licenses for the Company’s navigation, survey design and quality control software systems provide the customer with a right to use the software. The Company offers usage-based licenses under which it receives a monthly fee based on the number of vessels and licenses used. For these usage-based licenses, revenue is recognized as the performance obligations are performed over the contract term, which is generally two to five years. In addition to usage-based licenses, the Company offers perpetual software licenses as it exists when made available to the customer. Revenue from these licenses is recognized upfront at the point in time when the software is made available to the customer. These arrangements generally include the Company providing related services, such as training courses, engineering services and annual software maintenance. The Company allocates consideration to each element of the arrangement based upon directly observable or estimated standalone selling prices. Revenue is recognized for these services as control transfers to the customer over time. Ocean Bottom Integrated Technologies - The Company recognizes revenue as the seismic is acquired and control transfers to the customer. The Company uses quantifiable measures of progress consistent with our multi-client surveys. In connection with acquisition contracts, the Company may receive revenues for preparation and mobilization of equipment and personnel, capital improvements to vessels, or demobilization activities. The Company defers the revenues earned and incremental costs incurred that are directly related to these activities and recognizes such revenues and costs over the primary contract term of the acquisition project as we transfer the goods and services to the customer. The Company recognizes the costs of relocating vessels without contracts to more promising market sectors as such costs are incurred. Revenue by Geographic Area The following table is a summary of net revenues by geographic area (in thousands): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Net revenues by geographic area: Latin America $ 7,594 $ 12,172 $ 17,446 $ 18,757 North America 4,309 13,870 12,357 21,265 Europe 6,060 11,428 11,609 17,064 Asia Pacific 3,929 6,762 7,863 11,585 Africa 2,222 913 7,241 1,473 Middle East 441 501 1,190 1,081 Commonwealth of Independent States 188 355 545 7,332 Total $ 24,743 $ 46,001 $ 58,251 $ 78,557 See Footnote 3 “Segment Information” of Footnotes to Unaudited Condensed Financial Statements for revenue by segment for the three and six months ended June 30, 2018 and 2017 . Unbilled Receivables Unbilled receivables relate to revenues recognized on multi-client surveys, imaging services and Devices equipment repairs on a proportionate basis, and on licensing of multi-client data libraries for which invoices have not yet been presented to the customer. The following table is a summary of unbilled receivables (in thousands): June 30, 2018 December 31, 2017 New Venture $ 9,797 $ 33,183 Imaging Services 4,941 4,121 Devices 308 — Total $ 15,046 $ 37,304 The changes in unbilled receivables were as follows (in thousands): Unbilled Receivables at December 31, 2017 $ 37,304 Recognition of unbilled receivables 47,005 Revenues billed to customers (69,263 ) Unbilled receivables at June 30, 2018 $ 15,046 Deferred Revenue Billing practices are governed by the terms of each contract based upon achievement of milestones or pre-agreed schedules. Billings do not necessarily correlate with revenue recognized on a proportionate basis as work is performed and control is transferred to the customer. Deferred revenue represents cash received in excess of revenue not yet recognized as of the reporting period, but will be recognized in future periods. The following table is a summary of deferred revenues (in thousands): June 30, 2018 December 31, 2017 New Venture $ 6,501 $ 6,548 Imaging Services 465 676 Devices 96 633 Optimization Software & Services 1,340 1,053 Total $ 8,402 $ 8,910 The changes in deferred revenues were as follows (in thousands): Deferred revenue at December 31, 2017 $ 8,910 Cash collected in excess of revenue recognized 12,866 Recognition of deferred revenue (a) (13,374 ) Deferred revenue at June 30, 2018 $ 8,402 (a) The majority of deferred revenue recognized relates to Company’s New Venture and Imaging Services groups. The Company expects to recognize all deferred revenue over the next 12 months. Credit Risks At June 30, 2018 , the Company had one multinational oil customer with a balance of 11% of its total combined accounts and unbilled receivable balances. However, there were no customers that comprised more than 10% of our total net revenues for the six months ended June 30, 2018 . The loss of this customer or deterioration in this customers relationship with the Company could have a material adverse effect on results of operations and financial condition of the Company.

Long-term Debt

Long-term Debt	6 Months Ended
	Jun. 30, 2018
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) June 30, 2018 December 31, 2017 Senior secured second-priority lien notes (maturing December 15, 2021) $ 120,569 $ 120,569 Senior secured third-priority lien notes (redeemed on March 26, 2018) — 28,497 Revolving line of credit (maturing August 22, 2019) — 10,000 Equipment capital leases and other debt 459 1,661 Costs associated with issuances of debt (3,410 ) (3,983 ) Total 117,618 156,744 Current portion of long-term debt and lease obligations (459 ) (40,024 ) Non-current portion of long-term debt and lease obligations $ 117,159 $ 116,720 Revolving Credit Facility In August 2014, ION Geophysical Corporation 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 ”; ION Geophysical Corporation and the Subsidiary Borrowers are, collectively, the “Borrowers”) entered into a Revolving Credit and Security Agreement with PNC Bank, National Association (“PNC”), as agent (the “Original Credit Agreement”). The Original Credit Agreement 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, is herein called the “ Credit Facility ”). 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. In April 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 ION Geophysical Corporation’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; • established a reserve that was to reduce the amount available to be borrowed by the aggregate amount owing under all Third Lien Notes that remained 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 ION Geophysical Corporation 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 incorporate 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 June 30, 2018 , the borrowing base under the Credit Facility was $23.3 million , and there was no indebtedness under the Credit Facility. 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 the 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 Geophysical Corporation’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 ION Geophysical Corporation’s excess availability to borrow ( $23.3 million at June 30, 2018 ) plus the aggregate amount of unrestricted cash held by the Borrowers and their domestic subsidiaries. At June 30, 2018 , the Borrowers and their domestic subsidiaries had unrestricted cash totaling $34.9 million and non-domestic subsidiaries had unrestricted cash totaling $9.5 million . At June 30, 2018 , ION Geophysical Corporation 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 Geophysical Corporation), the occurrence of which could lead to an acceleration of ION Geophysical Corporation’s obligations under the Credit Facility. Senior Secured Notes As of December 31, 2017, ION Geophysical Corporation’s 9.125% Senior Secured Second Priority Notes due December 2021 (the “Second Lien Notes”) had an outstanding aggregate principal amount of $120.6 million , and ION Geophysical Corporation’s 8.125% Senior Third Priority Notes due May 2018 (the “Third Lien Notes”) had an outstanding aggregate principal amount of $28.5 million (The Third Lien Notes and the Second Lien Notes, are herein, collectively the “Notes”). In March 2018, ION Geophysical Corporation obtained consent from a majority of the Second Lien Notes holders and from PNC to redeem, in full, the Third Lien Notes prior to their stated maturity. On March 26, 2018, ION Geophysical Corporation redeemed the Third Lien Notes by paying the then outstanding principal amount of $28.5 million , plus all accrued and unpaid interest through the redemption date. For a complete discussion of the Third Lien Notes prior to their early redemption, see Footnote 3 to the Financial Statements included in the Company’s Annual Report on Form 10-K, as amended for the year ended December 31, 2017. The Second Lien Notes remain outstanding and are senior secured second-priority obligations guaranteed by ION Geophysical Corporation’s material U.S. subsidiaries, GX Technology Corporation, ION Exploration Products (U.S.A.), Inc. and I/O Marine Systems, Inc. (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 April 2016 indenture, governing the Second Lien Notes (the “Second Lien Notes Indenture”) contains certain covenants that, among other things, limits or prohibits ION Geophysical Corporation’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 ION Geophysical Corporation’s capital stock, redeeming ION Geophysical Corporation’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 ION Geophysical Corporation’s subsidiaries are currently restricted subsidiaries. As of June 30, 2018 , ION Geophysical Corporation 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 Loss Per Share

Net Loss Per Share	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share Basic net loss per common share is computed by dividing net loss applicable to common shares by the weighted average number of common shares outstanding during the period. Diluted net 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 June 30, 2018 and 2017 was 815,791 and 838,582 , respectively, and the total number of shares of restricted stock and shares reserved for restricted stock units outstanding at June 30, 2018 and 2017 was 128,131 and 187,675 , respectively. All the outstanding stock options for the three and six months ended June 30, 2018 and 2017 were anti-dilutive.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2018
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 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. The tax provision for the six months ended June 30, 2018 has been calculated using the Company’s overall estimated annual effective tax rate based on projected 2018 full year results. The tax provision includes impacts of the Tax Cut and Jobs Act enacted on December 22, 2017, however, these impacts are minimal due to the Company’s U.S. net operating loss and valuation allowance position. The Company’s effective tax rates for the three months ended June 30, 2018 and 2017 were (0.6)% and (31.5)% , respectively. The Company’s effective tax rates for the six-months ended June 30, 2018 and 2017 were (2.9)% and (6.4)% , respectively. The Company’s effective tax rates for the three and six months ended June 30, 2018 and 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 six months ended June 30, 2018 of $1.2 million primarily relates to results from the Company’s non-U.S. businesses. The Company has approximately $0.4 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 June 30, 2018 , the Company’s U.S. federal tax returns for 2014 and subsequent years remain subject to examination by tax authorities. In the Company’s foreign tax jurisdictions, tax returns for 2013 and subsequent years generally remain open to examination.

Litigation

Litigation	6 Months Ended
	Jun. 30, 2018
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 royalties and $93.4 million in lost profits. In June 2013, the presiding judge entered a Memorandum and Order, denying the Company’s post-verdict motions that challenged the jury’s infringement findings and the damages amount. In the Memorandum and Order, the judge also ruled that WesternGeco was 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 were subject to supplemental damages and also ruling that the supplemental damages applicable to the additional units were to be calculated by adding together the jury’s previous reasonable royalty and lost profits damages awards per unit, resulting in supplemental damages of $73.1 million . In April 2014, the judge entered another Order, ruling that lost profits should not have been included in the calculation of supplemental damages in the October 2013 Memorandum and Order and reducing the supplemental damages award in the case from $73.1 million to $9.4 million . In the Order, the judge also further reduced the damages awarded 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 against the Company in the amount of $123.8 million . 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. (the “Court of Appeals”). On July 2, 2015, the Court of Appeals reversed in part the Final Judgment of the District Court, holding the District Court erred by including lost profits in the Final Judgment. Lost profits were $93.4 million and prejudgment interest on lost profits 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. As previously disclosed, the Company recorded a loss contingency accrual of $123.8 million . As a result of the reversal by the Court of Appeals, as of June 30, 2015, the Company reduced its loss contingency accrual to $22.0 million . 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 vacated the Court of Appeals’ ruling although it did not address the lost profits question at that time. Rather, 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 Court of Appeals for a determination of whether or not the willfulness determination by the District Court was appropriate. On October 14, 2016, the Court of Appeals issued a mandate returning the case to the District Court for consideration of whether or not additional damages for willfulness were appropriate. On November 14, 2016, the District Court ordered the sureties to pay principal and interest on the royalty damages previously awarded and declined to issue a final judgment until after consideration of whether enhanced damages for willfulness would be awarded. While the Company disagreed with the decision by the District Court ordering payment of the royalty damages and interest without a final judgment, on November 25, 2016, the Company paid WesternGeco the $20.8 million due pursuant to the order, at which point the Company reduced its loss contingency accrual to zero . 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 the Company’s infringement was willful, based on his perception that the Company did not adequately investigate the scope of the patents, and the Company’s conduct during trial. However, in his ruling at the hearing, he limited enhanced damages to $5.0 million because it was a “close case,” there was no evidence of copying, and the Company 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 and ruling 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. Upon assessment of the $5.0 million in enhanced damages, the Company accrued $5.0 million in the first quarter of 2017. As the Company has made the payments, the accrual has been adjusted, and as of June 30, 2018 , the loss contingency accrual was $1.25 million . 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 advancing a procedural argument that WesternGeco could not 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 Company and WesternGeco each met with the Solicitor General’s office in late July 2017. On December 6, 2017, the Solicitor General filed its brief, and took the position that the Supreme Court ought to grant certiorari. On January 12, 2018, the Supreme Court granted certiorari as to whether the Court of Appeals erred in holding that lost profits arising from use of prohibited combinations occurring outside of the United States are categorically unavailable in cases where patent infringement is proven under 35 U.S.C. § 271(f)(2) (the specific statute under which the Company was ultimately held to have infringed WesternGeco’s patents and upon which the District Court and Court of Appeals relied in entering their final rulings). The Supreme Court heard oral arguments on April 16, 2018. At oral arguments, the Company argued that the Court of Appeals’ decision that eliminated lost profits ought to be affirmed. WesternGeco and the Solicitor General argued that the Court of Appeals’ decision that eliminated lost profits ought to be reversed. On June 22, 2018, the Supreme Court reversed the judgment of the Court of Appeals, held that the award of lost profits to WesternGeco by the District Court was a permissible application of Section 284 of the Patent Act, and remanded the case back to the Circuit Court for further proceedings consistent with its (the Supreme Court’s) opinion. On July 24, 2018, the Supreme Court issued the judgment that returned the case to the Court of Appeals. At the Court of Appeals, in the case leading up to the Supreme Court, the Company presented multiple arguments as to why the District Court’s award of lost profits was improper. The lost profits damages awarded by the District Court were based on the use of the Company’s products by our customers outside of the United States. The Company argued at the Court of Appeals, and at the Supreme Court, that, as a matter of law, WesternGeco cannot recoup lost profits for the overseas use of the Company’s products. This issue, decided in favor of WesternGeco in the recent Supreme Court opinion, was the only issue reached by the Supreme Court in that decision. The Company also argued in the Court of Appeals that, under the jury instructions given in our case, the jury was required to find that the Company had been a direct competitor of WesternGeco in the survey markets where WesternGeco lost profits in order for WesternGeco to recoup them. Because the Court of Appeals ruled in favor of the Company on the first argument, and overturned the award of lost profits on that basis, the Court of Appeals did not rule on the Company’s “direct competitor” argument, and that argument was not presented to the Supreme Court for review. Thus, while the Supreme Court overturned the Court of Appeals’ decision that WesternGeco cannot recover foreign lost profits under the Patent Act, the Supreme Court did not order the Company to pay any amount with respect to lost profits but rather remanded the case back to the Court of Appeals for further consideration of whether lost profits are payable by the Company in this case. The Company will now be permitted to present its second argument at the Court of Appeals (that lost profits should not be awarded to WesternGeco because they were not the Company’s direct competitor). Other proceedings may have an impact on WesternGeco’s ability to recover lost profits damages and reasonable royalties even if the Company does not prevail on the “direct competitor” argument in the Court of Appeals. The Company was a party to a challenge to the validity of several of WesternGeco’s patent claims by means of an Inter Partes Review (“IPR”) with the Patent Trial and Appeal Board (“PTAB”). While the above-described lawsuit was pending on appeal, the PTAB invalidated four of the six patent claims that formed the basis for the jury verdict in the lawsuit. WesternGeco appealed that decision to the Court of Appeals, which heard the Company’s and WesternGeco’s arguments on January 23, 2018. The Court of Appeals affirmed the PTAB’s invalidation of the patents on May 7, 2018, and on July 16, 2018, the Court of Appeals denied WesternGeco’s petition for a panel rehearing and a rehearing en banc. This decision by the Court of Appeals may provide a separate ground for reducing or vacating any lost-profits or reasonable royalty award in the lawsuit. On July 25, 2018, the Company filed a motion for leave to file supplemental briefing in the Court of Appeals, and concurrently, filed a brief arguing that the judgment of the District Court as to both lost profits and reasonable royalties should be vacated, and that the case should be remanded to the District Court for a new determination on damages. On July 27, 2018, the Court of Appeals vacated its September 21, 2016 judgment with respect to damages, and ordered WesternGeco and the Company to submit supplemental briefing on what relief is appropriate in light of the Supreme Court’s decision. This order rendered the Company’s motion for leave to submit briefing moot, and, accordingly, the Court of Appeals denied the Company’s motion as moot. The supplemental briefing ordered by the Court of Appeals is scheduled to be completed by September 7, 2018. The Company may not ultimately prevail in any of the appeals processes noted above and the Company could be required to pay some or all of the lost profits that were awarded by the District Court if the judgment of the District Court is upheld by the Court of Appeals on remand, or if a new trial is granted and a new judgment issues. The Company’s assessment that it does not have a loss contingency (other than the $1.25 million noted above) may change in the future due to developments at the Supreme Court, Court of Appeals, or District Court, and other events, such as changes in applicable law, and such reassessment could lead to the determination that an additional loss contingency is probable, which could have a material effect on the Company’s business, financial condition and results of operations. The Company’s assessments disclosed in this Quarterly Report on Form 10-Q or elsewhere are based on currently available information and involve elements of judgment and significant uncertainties. Other Litigation 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. The Company currently believe that the ultimate resolution of these matters will not have a material adverse effect on our financial condition or results of operations.

Other Expense, Net

Other Expense, Net	6 Months Ended
	Jun. 30, 2018
Other Income and Expenses [Abstract]
Other Expense, Net	Other Expense, Net The following table is a summary of other expense , net (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Accrual for loss related to legal proceedings (Footnote 8) $ — $ — $ — $ (5,000 ) Other income (expense), net 84 192 (707 ) 124 Total other expense, net $ 84 $ 192 $ (707 ) $ (4,876 )

Inventories

Inventories	6 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Inventories	Inventories The following table is a summary of inventories (in thousands): June 30, 2018 December 31, 2017 Raw materials and subassemblies $ 19,988 $ 20,448 Work-in-process 1,476 1,146 Finished goods 8,441 7,953 Reserve for excess and obsolete inventories (14,980 ) (15,039 ) Total $ 14,925 $ 14,508

Accumulated Other Comprehensive

Accumulated Other Comprehensive Loss	6 Months Ended
	Jun. 30, 2018
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, 2017 $ (18,879 ) $ (18,879 ) Net current-period other comprehensive income (755 ) (a) (755 ) Accumulated other comprehensive loss at June 30, 2018 $ (19,634 ) $ (19,634 ) (a) Represents the impact of foreign currency translation adjustments, primarily due to the devaluation of the British Pound Sterling (“GBP”) on the Company’s GBP-denominated balances, primarily in the Company’s Optimization Software & Services group

Supplemental Cash Flow Informat

Supplemental Cash Flow Information and Non-cash Activity	6 Months Ended
	Jun. 30, 2018
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): Six Months Ended June 30, 2018 2017 Cash paid during the period for: Interest $ 6,620 $ 7,075 Income taxes 1,354 2,364 Non-cash items from investing and financing activities: Investment in multi-client data library in accounts payable and accrued expenses — 4,561

Fair Value of Financial Instrum

Fair Value of Financial Instruments	6 Months Ended
	Jun. 30, 2018
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, under which the fair value hierarchy prioritizes the inputs used to measure fair value into three broad levels, moving from quoted prices in active markets in (Level 1) to unobservable inputs in (Level 3). The carrying amounts of the Company’s debt as of June 30, 2018 and December 31, 2017 were $121.0 million and $160.7 million , respectively, compared to its fair values of $121.0 million and $158.2 million as of June 30, 2018 and December 31, 2017 , 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 and Stock-

Stockholder's Equity and Stock-Based Compensation Expense	6 Months Ended
	Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stockholder's Equity and Stock-Based Compensation Expense	Stockholder's Equity and Stock-Based Compensation Expense Public Equity Offering On February 21, 2018, the Company announced its successful completion of a public equity offering. The Company issued and sold 1,820,000 shares of common stock at a public offering price of $27.50 per share, and warrants to purchase an additional 1,820,000 shares of the Company’s common stock. The net proceeds from this offering were $47.2 million , including transaction expenses. A portion of the net proceeds were used to retire the Company’s $28.5 million Third Lien Notes in March 2018 (several weeks before their maturity date). The warrants have an exercise price of $33.60 per share, are immediately exercisable and expire on March 21, 2019. If the warrants are exercised in full prior to their expiration, the Company would receive additional proceeds of $61.2 million , excluding underwriter fees and other transaction expenses. Stock-Based Compensation The total number of shares issued or reserved for future issuance under outstanding stock options at June 30, 2018 and 2017 was 815,791 and 838,582 , respectively, and the total number of shares of restricted stock and shares reserved for restricted stock units outstanding at June 30, 2018 and 2017 was 128,131 and 187,675 , respectively. The total number of stock appreciation rights awards outstanding at June 30, 2018 and 2017 was 530,865 and 1,416,133 , respectively. The following table presents a summary of the activity related to stock options, restricted stock, restricted stock unit awards and stock appreciation rights awards for the six months ended June 30, 2018 : Stock Options Restricted Stock and Unit Awards Stock Appreciation Rights Number of Shares Outstanding at December 31, 2017 890,341 201,702 565,864 Granted 10,000 66,773 — Stock options and stock appreciation rights exercised/restricted stock and unit awards vested (70,086 ) (137,844 ) (34,999 ) Cancelled/forfeited (14,464 ) (2,500 ) — Outstanding at June 30, 2018 815,791 128,131 530,865 Stock-based compensation expense recognized for the six months ended June 30, 2018 and 2017 , totaled $2.0 million and $1.2 million , respectively. Stock appreciation rights expense recognized for the six months ended June 30, 2018 and 2017 , totaled $2.5 million and $0.3 million , respectively.

Condensed Consolidating Financi

Condensed Consolidating Financial Information	6 Months Ended
	Jun. 30, 2018
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Condensed Consolidating Financial Information	Condensed Consolidating Financial Information The Second Lien Notes were issued by ION Geophysical Corporation and the Second Lien Notes 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 Second Lien 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. June 30, 2018 Balance Sheet ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 34,888 $ — $ 9,461 $ — $ 44,349 Accounts receivable, net 8 9,034 6,333 — 15,375 Unbilled receivables — 9,594 5,452 — 15,046 Inventories — 9,352 5,573 — 14,925 Prepaid expenses and other current assets 2,496 833 2,632 — 5,961 Total current assets 37,392 28,813 29,451 — 95,656 Deferred income tax asset 1,263 — 2,351 — 3,614 Property, plant, equipment and seismic rental equipment, net 448 6,419 41,575 — 48,442 Multi-client data library, net — 55,481 27,095 — 82,576 Investment in subsidiaries 681,858 330,741 — (1,012,599 ) — Goodwill — — 23,543 — 23,543 Intangible assets, net — 1,082 — — 1,082 Intercompany receivables — 92,164 122,612 (214,776 ) — Other assets 515 145 71 — 731 Total assets $ 721,476 $ 514,845 $ 246,698 $ (1,227,375 ) $ 255,644 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ 329 $ 130 $ — $ — $ 459 Accounts payable 3,840 19,430 2,903 — 26,173 Accrued expenses 11,598 10,910 6,428 — 28,936 Accrued multi-client data library royalties — 27,773 215 — 27,988 Deferred revenue — 2,220 6,182 — 8,402 Total current liabilities 15,767 60,463 15,728 — 91,958 Long-term debt, net of current maturities 117,159 — — — 117,159 Intercompany payables 555,466 — — (555,466 ) — Other long-term liabilities 442 5,908 6,256 — 12,606 Total liabilities 688,834 66,371 21,984 (555,466 ) 221,723 Equity: Common stock 140 290,460 47,776 (338,236 ) 140 Additional paid-in capital 951,349 180,700 203,907 (384,607 ) 951,349 Accumulated earnings (deficit) (899,213 ) 234,434 71,908 (306,342 ) (899,213 ) Accumulated other comprehensive income (loss) (19,634 ) 4,324 (20,910 ) 16,586 (19,634 ) Due from ION Geophysical Corporation — (261,444 ) (79,246 ) 340,690 — Total stockholders’ equity 32,642 448,474 223,435 (671,909 ) 32,642 Noncontrolling interest — — 1,279 — 1,279 Total equity 32,642 448,474 224,714 (671,909 ) 33,921 Total liabilities and equity $ 721,476 $ 514,845 $ 246,698 $ (1,227,375 ) $ 255,644 December 31, 2017 Balance Sheet ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 39,344 $ — $ 12,712 $ — $ 52,056 Accounts receivable, net 50 9,374 10,054 — 19,478 Unbilled receivables — 16,666 20,638 — 37,304 Inventories — 8,686 5,822 — 14,508 Prepaid expenses and other current assets 2,427 769 4,447 — 7,643 Total current assets 41,821 35,495 53,673 — 130,989 Deferred income tax asset 1,264 — 489 — 1,753 Property, plant, equipment and seismic rental equipment, net 511 7,170 44,472 — 52,153 Multi-client data library, net — 62,438 26,862 — 89,300 Investment in subsidiaries 693,679 321,934 — (1,015,613 ) — Goodwill — — 24,089 — 24,089 Intangible assets, net — 1,666 — — 1,666 Intercompany receivables — 132,184 90,227 (222,411 ) — Other assets 686 145 288 — 1,119 Total assets $ 737,961 $ 561,032 $ 240,100 $ (1,238,024 ) $ 301,069 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ 39,774 $ 250 $ — $ — $ 40,024 Accounts payable 1,774 20,982 2,195 — 24,951 Accrued expenses 12,284 15,601 10,812 — 38,697 Accrued multi-client data library royalties — 26,824 211 — 27,035 Deferred revenue — 3,201 5,709 — 8,910 Total current liabilities 53,832 66,858 18,927 — 139,617 Long-term debt, net of current maturities 116,691 29 — — 116,720 Intercompany payables 537,417 — — (537,417 ) — Other long-term liabilities 454 6,084 7,388 — 13,926 Total liabilities 708,394 72,971 26,315 (537,417 ) 270,263 Equity: Common stock 120 290,460 49,394 (339,854 ) 120 Additional paid-in capital 903,247 180,701 202,290 (382,991 ) 903,247 Accumulated earnings (deficit) (854,921 ) 248,770 59,307 (308,077 ) (854,921 ) Accumulated other comprehensive income (loss) (18,879 ) 4,372 (19,681 ) 15,309 (18,879 ) Due from ION Geophysical Corporation — (236,242 ) (78,764 ) 315,006 — Total stockholders’ equity 29,567 488,061 212,546 (700,607 ) 29,567 Noncontrolling interest — — 1,239 — 1,239 Total equity 29,567 488,061 213,785 (700,607 ) 30,806 Total liabilities and equity $ 737,961 $ 561,032 $ 240,100 $ (1,238,024 ) $ 301,069 Three Months Ended June 30, 2018 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net revenues $ — $ 12,466 $ 12,277 $ — $ 24,743 Cost of sales — 17,746 8,514 — 26,260 Gross profit (loss) — (5,280 ) 3,763 — (1,517 ) Total operating expenses 10,334 7,145 3,523 — 21,002 Income (loss) from operations (10,334 ) (12,425 ) 240 — (22,519 ) Interest expense, net (2,947 ) (7 ) 43 — (2,911 ) Intercompany interest, net 304 (2,811 ) 2,507 — — Equity in earnings (losses) of investments (11,202 ) 4,162 — 7,040 — Other income (expense) (37 ) 3 118 — 84 Net income (loss) before income taxes (24,216 ) (11,078 ) 2,908 7,040 (25,346 ) Income tax expense (benefit) 1,650 (418 ) (1,078 ) — 154 Net income (loss) (25,866 ) (10,660 ) 3,986 7,040 (25,500 ) Net income attributable to noncontrolling interest — — (366 ) — (366 ) Net income (loss) attributable to ION $ (25,866 ) $ (10,660 ) $ 3,620 7,040 $ (25,866 ) Comprehensive net income $ (28,446 ) $ (10,660 ) $ 1,023 $ 10,003 $ (28,080 ) Comprehensive income attributable to noncontrolling interest — — (366 ) — (366 ) Comprehensive net income (loss) attributable to ION $ (28,446 ) $ (10,660 ) $ 657 $ 10,003 $ (28,446 ) Three Months Ended June 30, 2017 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net revenues $ — $ 14,945 $ 31,056 $ — $ 46,001 Cost of sales — 18,369 12,014 — 30,383 Gross profit (loss) — (3,424 ) 19,042 — 15,618 Total operating expenses 8,072 6,712 4,406 — 19,190 Income (loss) from operations (8,072 ) (10,136 ) 14,636 — (3,572 ) Interest expense, net (4,183 ) (69 ) 11 — (4,241 ) Intercompany interest, net 265 (1,643 ) 1,378 — — Equity in earnings of investments 1,910 9,077 — (10,987 ) — Other income (expense) (328 ) (1 ) 521 — 192 Net income (loss) before income taxes (10,408 ) (2,772 ) 16,546 (10,987 ) (7,621 ) Income tax expense (benefit) 33 (5,171 ) 7,540 — 2,402 Net income (loss) (10,441 ) 2,399 9,006 (10,987 ) (10,023 ) Net income attributable to noncontrolling interest — — (418 ) — (418 ) Net income (loss) attributable to ION $ (10,441 ) $ 2,399 $ 8,588 (10,987 ) $ (10,441 ) Comprehensive net income (loss) $ (9,242 ) $ 2,399 $ 9,852 $ (11,833 ) $ (8,824 ) Comprehensive income attributable to noncontrolling interest — — (418 ) — (418 ) Comprehensive net income (loss) attributable to ION $ (9,242 ) $ 2,399 $ 9,434 $ (11,833 ) $ (9,242 ) Six Months Ended June 30, 2018 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 $ (19,329 ) $ 21,410 $ (2,285 ) $ (204 ) Cash flows from investing activities: Cash invested in multi-client data library — (10,605 ) (3,177 ) (13,782 ) Purchase of property, plant, equipment and seismic rental equipment (250 ) (6 ) (168 ) (424 ) Net cash used in investing activities (250 ) (10,611 ) (3,345 ) (14,206 ) Cash flows from financing activities: Payments under revolving line of credit (10,000 ) — — (10,000 ) Payments on notes payable and long-term debt (29,570 ) (129 ) — (29,699 ) Intercompany lending 8,555 (10,670 ) 2,115 — Net proceeds from issuance of stock 47,219 — — 47,219 Dividend payment to non-controlling interest (200 ) — — (200 ) Other financing activities (881 ) — — (881 ) Net cash provided by (used in) financing activities 15,123 (10,799 ) 2,115 6,439 Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash — — 264 264 Net decrease in cash, cash equivalents and restricted cash (4,456 ) — (3,251 ) (7,707 ) Cash, cash equivalents and restricted cash at beginning of period 39,707 — 12,712 52,419 Cash, cash equivalents and restricted cash at end of period $ 35,251 $ — $ 9,461 $ 44,712 The following table is a reconciliation of cash and cash equivalents to total cash, cash equivalents, and restricted cash: Six months ended June 30, 2018 ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments (In thousands) Cash and cash equivalents $ 34,888 $ — $ 9,461 $ 44,349 Restricted cash included in prepaid expenses and other current assets 60 — — 60 Restricted cash included in other long-term assets 303 — — 303 Total cash, cash equivalents, and restricted cash shown in statement of cash flows $ 35,251 $ — $ 9,461 $ 44,712 Six Months Ended June 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 $ (1,879 ) $ 7,416 $ (2,046 ) $ 3,491 Cash flows from investing activities: Investment in multi-client data library — (3,962 ) (4,520 ) (8,482 ) Purchase of property, plant, equipment and seismic rental equipment (165 ) (669 ) (81 ) (915 ) Net cash used in investing activities (165 ) (4,631 ) (4,601 ) (9,397 ) Cash flows from financing activities: Payments on notes payable and long-term debt (1,018 ) (2,081 ) (58 ) (3,157 ) Intercompany lending (1,574 ) (704 ) 2,278 — Other financing activities (296 ) — — (296 ) Net cash provided by (used in) financing activities (2,888 ) (2,785 ) 2,220 (3,453 ) Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash — — (169 ) (169 ) Net decrease in cash, cash equivalents and restricted cash (4,932 ) — (4,596 ) (9,528 ) Cash, cash equivalents and restricted cash at beginning of period 23,823 — 29,610 53,433 Cash, cash equivalents and restricted cash at end of period $ 18,891 $ — $ 25,014 $ 43,905 The following table is a reconciliation of cash and cash equivalents to total cash, cash equivalents, and restricted cash: Six months ended June 30, 2017 ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments (In thousands) Cash and cash equivalents $ 18,258 $ — $ 25,014 $ 43,272 Restricted cash included in prepaid expenses and other current assets 330 — — 330 Restricted cash included in other long-term assets 303 — — 303 Total cash, cash equivalents, and restricted cash shown in statement of cash flows $ 18,891 $ — $ 25,014 $ 43,905

Recent Accounting Pronounceme23

Recent Accounting Pronouncements (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	In February 2016, the Financials Account Standards Board (“FASB”) issued Accounting Standards Update (“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 will adopt ASU 2016-02 on January 1, 2019. The Company is currently evaluating its operating leases related to offices, processing centers, warehouse spaces and, to a lesser extent, certain equipment. The Company expects the recording of these leases as right-of-use assets and liabilities will result in a material impact on its consolidated balance sheet. However, the Company expects the income statement recognition to appear similar to its current methodology. On January 1, 2018, the Company adopted FASB Accounting Standard Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers” and all the related amendments using the modified retrospective method. The adoption did not have a material impact to the Company’s revenue recognition policy under the previous standard (ASC 605) and adoption of the new standard, ASC 606, did not result in an adjustment to the Company’s beginning retained earnings balance. On January 1, 2018, the Company adopted ASU 2016-18, Statement of Cash Flows - “ Restricted Cash (a consensus of the FASB Emerging Issues Task Force) (ASU 2016-18)” , using a retrospective transition method to each period presented. The new standard no longer requires the Company to present transfers between cash and cash equivalents and restricted cash in the statement of cash flows. Adoption of the new standard resulted in a decrease of $0.1 million in net cash provided by operating activities as previously reported for the six months ended June 30, 2017 . See the consolidated statement of cash flows above which includes a reconciliation of cash and cash equivalents to total cash, cash equivalents, and restricted cash.

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Summary of Segment Information	The following table is a summary of segment information (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net revenues: E&P Technology & Services: New Venture $ 8,125 $ 19,986 $ 21,851 $ 26,935 Data Library 1,725 9,710 7,673 20,316 Total multi-client revenues 9,850 29,696 29,524 47,251 Imaging Services 5,338 4,186 10,232 9,941 Total 15,188 33,882 39,756 57,192 Operations Optimization: Devices 4,761 7,679 8,919 12,669 Optimization Software & Services 4,794 4,440 9,576 8,696 Total 9,555 12,119 18,495 21,365 Ocean Bottom Integrated Technologies — — — — Total $ 24,743 $ 46,001 $ 58,251 $ 78,557 Gross profit (loss): E&P Technology & Services $ (4,856 ) $ 11,921 $ (513 ) $ 15,931 Operations Optimization 4,933 6,258 9,244 11,045 Ocean Bottom Integrated Technologies (1,594 ) (2,561 ) (3,395 ) (5,257 ) Total $ (1,517 ) $ 15,618 $ 5,336 $ 21,719 Gross margin: E&P Technology & Services (32 )% 35 % (1 )% 28 % Operations Optimization 52 % 52 % 50 % 52 % Ocean Bottom Integrated Technologies — % — % — % — % Total (6 )% 34 % 9 % 28 % Income (loss) from operations: E&P Technology & Services $ (10,206 ) $ 6,353 $ (11,000 ) $ 5,257 Operations Optimization 1,243 3,022 2,029 4,571 Ocean Bottom Integrated Technologies (2,926 ) (3,860 ) (5,755 ) (7,868 ) Support and other (10,630 ) (9,087 ) (20,433 ) (19,444 ) Loss from operations (22,519 ) (3,572 ) (35,159 ) (17,484 ) Interest expense, net (2,911 ) (4,241 ) (6,747 ) (8,705 ) Other income (expense), net 84 192 (707 ) (4,876 ) Loss before income taxes $ (25,346 ) $ (7,621 ) $ (42,613 ) $ (31,065 )

Revenue From Contracts With C25

Revenue From Contracts With Customers (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue	The following table is a summary of net revenues by geographic area (in thousands): Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 Net revenues by geographic area: Latin America $ 7,594 $ 12,172 $ 17,446 $ 18,757 North America 4,309 13,870 12,357 21,265 Europe 6,060 11,428 11,609 17,064 Asia Pacific 3,929 6,762 7,863 11,585 Africa 2,222 913 7,241 1,473 Middle East 441 501 1,190 1,081 Commonwealth of Independent States 188 355 545 7,332 Total $ 24,743 $ 46,001 $ 58,251 $ 78,557
Contract with Customer, Asset and Liability	The following table is a summary of unbilled receivables (in thousands): June 30, 2018 December 31, 2017 New Venture $ 9,797 $ 33,183 Imaging Services 4,941 4,121 Devices 308 — Total $ 15,046 $ 37,304 The changes in unbilled receivables were as follows (in thousands): Unbilled Receivables at December 31, 2017 $ 37,304 Recognition of unbilled receivables 47,005 Revenues billed to customers (69,263 ) Unbilled receivables at June 30, 2018 $ 15,046 The following table is a summary of deferred revenues (in thousands): June 30, 2018 December 31, 2017 New Venture $ 6,501 $ 6,548 Imaging Services 465 676 Devices 96 633 Optimization Software & Services 1,340 1,053 Total $ 8,402 $ 8,910 The changes in deferred revenues were as follows (in thousands): Deferred revenue at December 31, 2017 $ 8,910 Cash collected in excess of revenue recognized 12,866 Recognition of deferred revenue (a) (13,374 ) Deferred revenue at June 30, 2018 $ 8,402 (a) The majority of deferred revenue recognized relates to Company’s New Venture and Imaging Services groups.

Long-term Debt (Tables)

Long-term Debt (Tables)	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Obligations	The following table is a summary of long-term debt obligations, net (in thousands): Obligations (in thousands) June 30, 2018 December 31, 2017 Senior secured second-priority lien notes (maturing December 15, 2021) $ 120,569 $ 120,569 Senior secured third-priority lien notes (redeemed on March 26, 2018) — 28,497 Revolving line of credit (maturing August 22, 2019) — 10,000 Equipment capital leases and other debt 459 1,661 Costs associated with issuances of debt (3,410 ) (3,983 ) Total 117,618 156,744 Current portion of long-term debt and lease obligations (459 ) (40,024 ) Non-current portion of long-term debt and lease obligations $ 117,159 $ 116,720
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%

Other Expense, Net (Tables)

Other Expense, Net (Tables)	6 Months Ended
	Jun. 30, 2018
Other Income and Expenses [Abstract]
Schedule of Other Nonoperating Income (Expense)	The following table is a summary of other expense , net (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Accrual for loss related to legal proceedings (Footnote 8) $ — $ — $ — $ (5,000 ) Other income (expense), net 84 192 (707 ) 124 Total other expense, net $ 84 $ 192 $ (707 ) $ (4,876 )

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Summary of Inventories	The following table is a summary of inventories (in thousands): June 30, 2018 December 31, 2017 Raw materials and subassemblies $ 19,988 $ 20,448 Work-in-process 1,476 1,146 Finished goods 8,441 7,953 Reserve for excess and obsolete inventories (14,980 ) (15,039 ) Total $ 14,925 $ 14,508

Accumulated Other Comprehensi29

Accumulated Other Comprehensive Loss (Tables)	6 Months Ended
	Jun. 30, 2018
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, 2017 $ (18,879 ) $ (18,879 ) Net current-period other comprehensive income (755 ) (a) (755 ) Accumulated other comprehensive loss at June 30, 2018 $ (19,634 ) $ (19,634 ) (a) Represents the impact of foreign currency translation adjustments, primarily due to the devaluation of the British Pound Sterling (“GBP”) on the Company’s GBP-denominated balances, primarily in the Company’s Optimization Software & Services group

Supplemental Cash Flow Inform30

Supplemental Cash Flow Information and Non-cash Activity (Tables)	6 Months Ended
	Jun. 30, 2018
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): Six Months Ended June 30, 2018 2017 Cash paid during the period for: Interest $ 6,620 $ 7,075 Income taxes 1,354 2,364 Non-cash items from investing and financing activities: Investment in multi-client data library in accounts payable and accrued expenses — 4,561

Stockholder's Equity and Stoc31

Stockholder's Equity and Stock-Based Compensation Expense (Tables)	6 Months Ended
	Jun. 30, 2018
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, restricted stock unit awards and stock appreciation rights awards for the six months ended June 30, 2018 : Stock Options Restricted Stock and Unit Awards Stock Appreciation Rights Number of Shares Outstanding at December 31, 2017 890,341 201,702 565,864 Granted 10,000 66,773 — Stock options and stock appreciation rights exercised/restricted stock and unit awards vested (70,086 ) (137,844 ) (34,999 ) Cancelled/forfeited (14,464 ) (2,500 ) — Outstanding at June 30, 2018 815,791 128,131 530,865
Schedule of Restricted Stock and Units Awards Activity	The following table presents a summary of the activity related to stock options, restricted stock, restricted stock unit awards and stock appreciation rights awards for the six months ended June 30, 2018 : Stock Options Restricted Stock and Unit Awards Stock Appreciation Rights Number of Shares Outstanding at December 31, 2017 890,341 201,702 565,864 Granted 10,000 66,773 — Stock options and stock appreciation rights exercised/restricted stock and unit awards vested (70,086 ) (137,844 ) (34,999 ) Cancelled/forfeited (14,464 ) (2,500 ) — Outstanding at June 30, 2018 815,791 128,131 530,865

Condensed Consolidating Finan32

Condensed Consolidating Financial Information (Tables)	6 Months Ended
	Jun. 30, 2018
Condensed Financial Information of Parent Company Only Disclosure [Abstract]
Condensed Balance Sheet	June 30, 2018 Balance Sheet ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 34,888 $ — $ 9,461 $ — $ 44,349 Accounts receivable, net 8 9,034 6,333 — 15,375 Unbilled receivables — 9,594 5,452 — 15,046 Inventories — 9,352 5,573 — 14,925 Prepaid expenses and other current assets 2,496 833 2,632 — 5,961 Total current assets 37,392 28,813 29,451 — 95,656 Deferred income tax asset 1,263 — 2,351 — 3,614 Property, plant, equipment and seismic rental equipment, net 448 6,419 41,575 — 48,442 Multi-client data library, net — 55,481 27,095 — 82,576 Investment in subsidiaries 681,858 330,741 — (1,012,599 ) — Goodwill — — 23,543 — 23,543 Intangible assets, net — 1,082 — — 1,082 Intercompany receivables — 92,164 122,612 (214,776 ) — Other assets 515 145 71 — 731 Total assets $ 721,476 $ 514,845 $ 246,698 $ (1,227,375 ) $ 255,644 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ 329 $ 130 $ — $ — $ 459 Accounts payable 3,840 19,430 2,903 — 26,173 Accrued expenses 11,598 10,910 6,428 — 28,936 Accrued multi-client data library royalties — 27,773 215 — 27,988 Deferred revenue — 2,220 6,182 — 8,402 Total current liabilities 15,767 60,463 15,728 — 91,958 Long-term debt, net of current maturities 117,159 — — — 117,159 Intercompany payables 555,466 — — (555,466 ) — Other long-term liabilities 442 5,908 6,256 — 12,606 Total liabilities 688,834 66,371 21,984 (555,466 ) 221,723 Equity: Common stock 140 290,460 47,776 (338,236 ) 140 Additional paid-in capital 951,349 180,700 203,907 (384,607 ) 951,349 Accumulated earnings (deficit) (899,213 ) 234,434 71,908 (306,342 ) (899,213 ) Accumulated other comprehensive income (loss) (19,634 ) 4,324 (20,910 ) 16,586 (19,634 ) Due from ION Geophysical Corporation — (261,444 ) (79,246 ) 340,690 — Total stockholders’ equity 32,642 448,474 223,435 (671,909 ) 32,642 Noncontrolling interest — — 1,279 — 1,279 Total equity 32,642 448,474 224,714 (671,909 ) 33,921 Total liabilities and equity $ 721,476 $ 514,845 $ 246,698 $ (1,227,375 ) $ 255,644 December 31, 2017 Balance Sheet ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 39,344 $ — $ 12,712 $ — $ 52,056 Accounts receivable, net 50 9,374 10,054 — 19,478 Unbilled receivables — 16,666 20,638 — 37,304 Inventories — 8,686 5,822 — 14,508 Prepaid expenses and other current assets 2,427 769 4,447 — 7,643 Total current assets 41,821 35,495 53,673 — 130,989 Deferred income tax asset 1,264 — 489 — 1,753 Property, plant, equipment and seismic rental equipment, net 511 7,170 44,472 — 52,153 Multi-client data library, net — 62,438 26,862 — 89,300 Investment in subsidiaries 693,679 321,934 — (1,015,613 ) — Goodwill — — 24,089 — 24,089 Intangible assets, net — 1,666 — — 1,666 Intercompany receivables — 132,184 90,227 (222,411 ) — Other assets 686 145 288 — 1,119 Total assets $ 737,961 $ 561,032 $ 240,100 $ (1,238,024 ) $ 301,069 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ 39,774 $ 250 $ — $ — $ 40,024 Accounts payable 1,774 20,982 2,195 — 24,951 Accrued expenses 12,284 15,601 10,812 — 38,697 Accrued multi-client data library royalties — 26,824 211 — 27,035 Deferred revenue — 3,201 5,709 — 8,910 Total current liabilities 53,832 66,858 18,927 — 139,617 Long-term debt, net of current maturities 116,691 29 — — 116,720 Intercompany payables 537,417 — — (537,417 ) — Other long-term liabilities 454 6,084 7,388 — 13,926 Total liabilities 708,394 72,971 26,315 (537,417 ) 270,263 Equity: Common stock 120 290,460 49,394 (339,854 ) 120 Additional paid-in capital 903,247 180,701 202,290 (382,991 ) 903,247 Accumulated earnings (deficit) (854,921 ) 248,770 59,307 (308,077 ) (854,921 ) Accumulated other comprehensive income (loss) (18,879 ) 4,372 (19,681 ) 15,309 (18,879 ) Due from ION Geophysical Corporation — (236,242 ) (78,764 ) 315,006 — Total stockholders’ equity 29,567 488,061 212,546 (700,607 ) 29,567 Noncontrolling interest — — 1,239 — 1,239 Total equity 29,567 488,061 213,785 (700,607 ) 30,806 Total liabilities and equity $ 737,961 $ 561,032 $ 240,100 $ (1,238,024 ) $ 301,069
Condensed Income Statement	Three Months Ended June 30, 2018 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net revenues $ — $ 12,466 $ 12,277 $ — $ 24,743 Cost of sales — 17,746 8,514 — 26,260 Gross profit (loss) — (5,280 ) 3,763 — (1,517 ) Total operating expenses 10,334 7,145 3,523 — 21,002 Income (loss) from operations (10,334 ) (12,425 ) 240 — (22,519 ) Interest expense, net (2,947 ) (7 ) 43 — (2,911 ) Intercompany interest, net 304 (2,811 ) 2,507 — — Equity in earnings (losses) of investments (11,202 ) 4,162 — 7,040 — Other income (expense) (37 ) 3 118 — 84 Net income (loss) before income taxes (24,216 ) (11,078 ) 2,908 7,040 (25,346 ) Income tax expense (benefit) 1,650 (418 ) (1,078 ) — 154 Net income (loss) (25,866 ) (10,660 ) 3,986 7,040 (25,500 ) Net income attributable to noncontrolling interest — — (366 ) — (366 ) Net income (loss) attributable to ION $ (25,866 ) $ (10,660 ) $ 3,620 7,040 $ (25,866 ) Comprehensive net income $ (28,446 ) $ (10,660 ) $ 1,023 $ 10,003 $ (28,080 ) Comprehensive income attributable to noncontrolling interest — — (366 ) — (366 ) Comprehensive net income (loss) attributable to ION $ (28,446 ) $ (10,660 ) $ 657 $ 10,003 $ (28,446 ) Three Months Ended June 30, 2017 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net revenues $ — $ 14,945 $ 31,056 $ — $ 46,001 Cost of sales — 18,369 12,014 — 30,383 Gross profit (loss) — (3,424 ) 19,042 — 15,618 Total operating expenses 8,072 6,712 4,406 — 19,190 Income (loss) from operations (8,072 ) (10,136 ) 14,636 — (3,572 ) Interest expense, net (4,183 ) (69 ) 11 — (4,241 ) Intercompany interest, net 265 (1,643 ) 1,378 — — Equity in earnings of investments 1,910 9,077 — (10,987 ) — Other income (expense) (328 ) (1 ) 521 — 192 Net income (loss) before income taxes (10,408 ) (2,772 ) 16,546 (10,987 ) (7,621 ) Income tax expense (benefit) 33 (5,171 ) 7,540 — 2,402 Net income (loss) (10,441 ) 2,399 9,006 (10,987 ) (10,023 ) Net income attributable to noncontrolling interest — — (418 ) — (418 ) Net income (loss) attributable to ION $ (10,441 ) $ 2,399 $ 8,588 (10,987 ) $ (10,441 ) Comprehensive net income (loss) $ (9,242 ) $ 2,399 $ 9,852 $ (11,833 ) $ (8,824 ) Comprehensive income attributable to noncontrolling interest — — (418 ) — (418 ) Comprehensive net income (loss) attributable to ION $ (9,242 ) $ 2,399 $ 9,434 $ (11,833 ) $ (9,242 ) Six Months Ended June 30, 2018 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net revenues $ — $ 24,254 $ 33,997 $ — $ 58,251 Cost of sales — 34,541 18,374 — 52,915 Gross profit (loss) — (10,287 ) 15,623 — 5,336 Total operating expenses 19,243 14,139 7,113 — 40,495 Income (loss) from operations (19,243 ) (24,426 ) 8,510 — (35,159 ) Interest expense, net (6,830 ) (13 ) 96 — (6,747 ) Intercompany interest, net 577 (5,130 ) 4,553 — — Equity in earnings (losses) of investments (16,117 ) 14,382 — 1,735 — Other income (expense) (225 ) 68 (550 ) — (707 ) Net income (loss) before income taxes (41,838 ) (15,119 ) 12,609 1,735 (42,613 ) Income tax expense (benefit) 2,454 (783 ) (445 ) — 1,226 Net income (loss) (44,292 ) (14,336 ) 13,054 1,735 (43,839 ) Net income attributable to noncontrolling interest — — (453 ) — (453 ) Net income (loss) attributable to ION $ (44,292 ) $ (14,336 ) 12,601 $ 1,735 (44,292 ) Comprehensive net income (loss) $ (45,047 ) $ (14,384 ) $ 11,825 $ 3,012 $ (44,594 ) Comprehensive income attributable to noncontrolling interest — — (453 ) — (453 ) Comprehensive net income (loss) attributable to ION $ (45,047 ) $ (14,384 ) $ 11,372 $ 3,012 $ (45,047 ) Six Months Ended June 30, 2017 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net revenues $ — $ 27,979 $ 50,578 $ — $ 78,557 Cost of sales — 35,956 20,882 — 56,838 Gross profit (loss) — (7,977 ) 29,696 — 21,719 Total operating expenses 17,412 12,871 8,920 — 39,203 Income (loss) from operations (17,412 ) (20,848 ) 20,776 — (17,484 ) Interest expense, net (8,643 ) (96 ) 34 — (8,705 ) Intercompany interest, net 593 (3,140 ) 2,547 — — Equity in earnings (losses) of investments (3,134 ) 17,853 — (14,719 ) — Other income (expense) (5,087 ) (340 ) 551 — (4,876 ) Net income (loss) before income taxes (33,683 ) (6,571 ) 23,908 (14,719 ) (31,065 ) Income tax expense (benefit) 100 (5,213 ) 7,097 — 1,984 Net income (loss) (33,783 ) (1,358 ) 16,811 (14,719 ) (33,049 ) Net income attributable to noncontrolling interests — — (734 ) — (734 ) Net income (loss) applicable to ION $ (33,783 ) (1,358 ) $ 16,077 $ (14,719 ) $ (33,783 ) Comprehensive net income (loss) $ (32,067 ) $ (1,406 ) $ 17,906 $ (15,766 ) $ (31,333 ) Comprehensive income attributable to noncontrolling interest — — (734 ) — (734 ) Comprehensive net income (loss) attributable to ION $ (32,067 ) $ (1,406 ) $ 17,172 $ (15,766 ) $ (32,067 )
Condensed Cash Flow Statement	Six Months Ended June 30, 2018 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 $ (19,329 ) $ 21,410 $ (2,285 ) $ (204 ) Cash flows from investing activities: Cash invested in multi-client data library — (10,605 ) (3,177 ) (13,782 ) Purchase of property, plant, equipment and seismic rental equipment (250 ) (6 ) (168 ) (424 ) Net cash used in investing activities (250 ) (10,611 ) (3,345 ) (14,206 ) Cash flows from financing activities: Payments under revolving line of credit (10,000 ) — — (10,000 ) Payments on notes payable and long-term debt (29,570 ) (129 ) — (29,699 ) Intercompany lending 8,555 (10,670 ) 2,115 — Net proceeds from issuance of stock 47,219 — — 47,219 Dividend payment to non-controlling interest (200 ) — — (200 ) Other financing activities (881 ) — — (881 ) Net cash provided by (used in) financing activities 15,123 (10,799 ) 2,115 6,439 Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash — — 264 264 Net decrease in cash, cash equivalents and restricted cash (4,456 ) — (3,251 ) (7,707 ) Cash, cash equivalents and restricted cash at beginning of period 39,707 — 12,712 52,419 Cash, cash equivalents and restricted cash at end of period $ 35,251 $ — $ 9,461 $ 44,712 The following table is a reconciliation of cash and cash equivalents to total cash, cash equivalents, and restricted cash: Six months ended June 30, 2018 ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments (In thousands) Cash and cash equivalents $ 34,888 $ — $ 9,461 $ 44,349 Restricted cash included in prepaid expenses and other current assets 60 — — 60 Restricted cash included in other long-term assets 303 — — 303 Total cash, cash equivalents, and restricted cash shown in statement of cash flows $ 35,251 $ — $ 9,461 $ 44,712 Six Months Ended June 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 $ (1,879 ) $ 7,416 $ (2,046 ) $ 3,491 Cash flows from investing activities: Investment in multi-client data library — (3,962 ) (4,520 ) (8,482 ) Purchase of property, plant, equipment and seismic rental equipment (165 ) (669 ) (81 ) (915 ) Net cash used in investing activities (165 ) (4,631 ) (4,601 ) (9,397 ) Cash flows from financing activities: Payments on notes payable and long-term debt (1,018 ) (2,081 ) (58 ) (3,157 ) Intercompany lending (1,574 ) (704 ) 2,278 — Other financing activities (296 ) — — (296 ) Net cash provided by (used in) financing activities (2,888 ) (2,785 ) 2,220 (3,453 ) Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash — — (169 ) (169 ) Net decrease in cash, cash equivalents and restricted cash (4,932 ) — (4,596 ) (9,528 ) Cash, cash equivalents and restricted cash at beginning of period 23,823 — 29,610 53,433 Cash, cash equivalents and restricted cash at end of period $ 18,891 $ — $ 25,014 $ 43,905 The following table is a reconciliation of cash and cash equivalents to total cash, cash equivalents, and restricted cash: Six months ended June 30, 2017 ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments (In thousands) Cash and cash equivalents $ 18,258 $ — $ 25,014 $ 43,272 Restricted cash included in prepaid expenses and other current assets 330 — — 330 Restricted cash included in other long-term assets 303 — — 303 Total cash, cash equivalents, and restricted cash shown in statement of cash flows $ 18,891 $ — $ 25,014 $ 43,905

Recent Accounting Pronounceme33

Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Decrease in net cash provided by operating activities	$ (204)	$ 3,491
Accounting Standards Update 2016-18
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Decrease in net cash provided by operating activities		$ (100)

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)segment	Jun. 30, 2017USD ($)
Segment Reporting [Abstract]
Number of segments | segment			3
Summary of segment information
Net revenues	$ 24,743	$ 46,001	$ 58,251	$ 78,557
Gross profit (loss)	$ (1,517)	$ 15,618	$ 5,336	$ 21,719
Gross margin	(6.00%)	34.00%	9.00%	28.00%
Income (loss) from operations	$ (22,519)	$ (3,572)	$ (35,159)	$ (17,484)
Interest expense, net	(2,911)	(4,241)	(6,747)	(8,705)
Other income (expense), net	84	192	(707)	(4,876)
Loss before income taxes	(25,346)	(7,621)	(42,613)	(31,065)
E&P Technology & Services
Summary of segment information
Net revenues	15,188	33,882	39,756	57,192
Gross profit (loss)	$ (4,856)	$ 11,921	$ (513)	$ 15,931
Gross margin	(32.00%)	35.00%	(1.00%)	28.00%
E&P Technology & Services | New Venture and Data Library [Member]
Summary of segment information
Net revenues	$ 9,850	$ 29,696	$ 29,524	$ 47,251
E&P Technology & Services | New Venture
Summary of segment information
Net revenues	8,125	19,986	21,851	26,935
E&P Technology & Services | Data Library
Summary of segment information
Net revenues	1,725	9,710	7,673	20,316
E&P Technology & Services | Imaging Services
Summary of segment information
Net revenues	5,338	4,186	10,232	9,941
Operations Optimization
Summary of segment information
Net revenues	9,555	12,119	18,495	21,365
Gross profit (loss)	$ 4,933	$ 6,258	$ 9,244	$ 11,045
Gross margin	52.00%	52.00%	50.00%	52.00%
Operations Optimization | Devices
Summary of segment information
Net revenues	$ 4,761	$ 7,679	$ 8,919	$ 12,669
Operations Optimization | Optimization Software & Services
Summary of segment information
Net revenues	4,794	4,440	9,576	8,696
Ocean Bottom Integrated Technologies
Summary of segment information
Net revenues	0	0	0	0
Gross profit (loss)	$ (1,594)	$ (2,561)	$ (3,395)	$ (5,257)
Gross margin	0.00%	0.00%	0.00%	0.00%
Operating segments | E&P Technology & Services
Summary of segment information
Income (loss) from operations	$ (10,206)	$ 6,353	$ (11,000)	$ 5,257
Operating segments | Operations Optimization
Summary of segment information
Income (loss) from operations	1,243	3,022	2,029	4,571
Operating segments | Ocean Bottom Integrated Technologies
Summary of segment information
Income (loss) from operations	(2,926)	(3,860)	(5,755)	(7,868)
Support and other
Summary of segment information
Income (loss) from operations	$ (10,630)	$ (9,087)	$ (20,433)	$ (19,444)

Revenue From Contracts With C35

Revenue From Contracts With Customers - Narrative (Details)	6 Months Ended
	Jun. 30, 2018
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Time period of contractual future performance obligations for which value not disclosed (or less)	1 year
Minimum | Operations Optimization | Optimization Software & Services
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Time period of contractual future performance obligations	2 years
Maximum | Operations Optimization | Optimization Software & Services
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Time period of contractual future performance obligations	5 years
Multinational Oil Customer | Accounts Receivable | Customer Concentration Risk
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Concentration risk percentage	11.00%

Revenue From Contracts With C36

Revenue From Contracts With Customers - Revenue by Geographic Area (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disaggregation of Revenue [Line Items]
Net revenues	$ 24,743	$ 46,001	$ 58,251	$ 78,557
Latin America
Disaggregation of Revenue [Line Items]
Net revenues	7,594	12,172	17,446	18,757
North America
Disaggregation of Revenue [Line Items]
Net revenues	4,309	13,870	12,357	21,265
Europe
Disaggregation of Revenue [Line Items]
Net revenues	6,060	11,428	11,609	17,064
Asia Pacific
Disaggregation of Revenue [Line Items]
Net revenues	3,929	6,762	7,863	11,585
Africa
Disaggregation of Revenue [Line Items]
Net revenues	2,222	913	7,241	1,473
Middle East
Disaggregation of Revenue [Line Items]
Net revenues	441	501	1,190	1,081
Commonwealth of Independent States
Disaggregation of Revenue [Line Items]
Net revenues	$ 188	$ 355	$ 545	$ 7,332

Revenue From Contracts With C37

Revenue From Contracts With Customers - Unbilled Receivables (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Unbilled Revenues [Roll Forward]
Unbilled Receivables at December 31, 2017	$ 37,304
Recognition of unbilled receivables	47,005
Revenues billed to customers	(69,263)
Unbilled receivables at June 30, 2018	15,046
New Venture
Unbilled Revenues [Roll Forward]
Unbilled Receivables at December 31, 2017	33,183
Unbilled receivables at June 30, 2018	9,797
Imaging Services
Unbilled Revenues [Roll Forward]
Unbilled Receivables at December 31, 2017	4,121
Unbilled receivables at June 30, 2018	4,941
Devices
Unbilled Revenues [Roll Forward]
Unbilled Receivables at December 31, 2017	0
Unbilled receivables at June 30, 2018	$ 308

Revenue From Contracts With C38

Revenue From Contracts With Customers - Deferred Revenue (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Revenue, Remaining Performance Obligation [Roll Forward]
Deferred revenue at December 31, 2017	$ 8,910
Cash collected in excess of revenue recognized	12,866
Recognition of deferred revenue	(13,374)
Deferred revenue at June 30, 2018	8,402
New Venture
Revenue, Remaining Performance Obligation [Roll Forward]
Deferred revenue at December 31, 2017	6,548
Deferred revenue at June 30, 2018	6,501
Imaging Services
Revenue, Remaining Performance Obligation [Roll Forward]
Deferred revenue at December 31, 2017	676
Deferred revenue at June 30, 2018	465
Devices
Revenue, Remaining Performance Obligation [Roll Forward]
Deferred revenue at December 31, 2017	633
Deferred revenue at June 30, 2018	96
Optimization Software & Services
Revenue, Remaining Performance Obligation [Roll Forward]
Deferred revenue at December 31, 2017	1,053
Deferred revenue at June 30, 2018	$ 1,340

Long-term Debt - Obligations (D

Long-term Debt - Obligations (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Obligations
Costs associated with issuances of debt	$ (3,410)	$ (3,983)
Total	117,618	156,744
Current portion of long-term debt and lease obligations	(459)	(40,024)
Non-current portion of long-term debt and lease obligations	117,159	116,720
Senior secured notes | Senior secured second-priority lien notes (maturing December 15, 2021)
Obligations
Gross debt	120,569	120,569
Total		120,600
Senior secured notes | Senior secured third-priority lien notes (redeemed on March 26, 2018)
Obligations
Gross debt	0	28,497
Total		28,500
Revolving line of credit (maturing August 22, 2019)
Obligations
Gross debt	0	10,000
Equipment capital leases and other debt
Obligations
Gross debt	$ 459	$ 1,661

Long-term Debt - Narrative (Det

Long-term Debt - Narrative (Details) - USD ($)	Mar. 26, 2018	Apr. 01, 2016	Mar. 31, 2016	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Debt Instrument [Line Items]
Unrestricted cash				$ 44,349,000	$ 52,056,000	$ 43,272,000
Aggregate principal amount of debt				117,618,000	$ 156,744,000
Domestic subsidiaries
Debt Instrument [Line Items]
Unrestricted cash				34,900,000
Non-domestic subsidiaries
Debt Instrument [Line Items]
Unrestricted cash				9,500,000
Line of credit | Revolving line of credit (maturing August 22, 2019) | 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				23,300,000
Indebtedness under the Credit Facility				0
Required liquidity maintained five consecutive business days				7,500,000
Required liquidity maintained any business day				6,500,000
Excess availability to borrow				$ 23,300,000
Line of credit | Revolving line of credit (maturing August 22, 2019) | PNC Bank, National Association (PNC) | Minimum
Debt Instrument [Line Items]
Fixed charge coverage ratio				1.1
Line of credit | Revolving line of credit (maturing August 22, 2019) | 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 line of credit (maturing August 22, 2019) | 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 line of credit (maturing August 22, 2019) | 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 line of credit (maturing August 22, 2019) | PNC Bank, National Association (PNC) | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate for debt		4.00%	3.50%
Senior secured notes | Senior secured third-priority lien notes (redeemed on March 26, 2018)
Debt Instrument [Line Items]
Stated rate on debt					8.125%
Aggregate principal amount of debt					$ 28,500,000
Amount of notes redeemed by paying principal amount	$ 28,500,000
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

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 Loss Per Share (Details)

Net Loss Per Share (Details) - shares	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Earnings Per Share [Abstract]
Number of shares issued or committed for issuance under outstanding stock options	815,791		838,582
Restricted stock and shares reserved for restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of restricted stock and shares reserved for restricted stock units outstanding	128,131	201,702	187,675

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income Tax Disclosure [Abstract]
Effective income tax rates	(0.60%)	(31.50%)	(2.90%)	(6.40%)
Income tax expense	$ 154	$ 2,402	$ 1,226	$ 1,984
Unrecognized tax benefits	$ 400		$ 400

Litigation (Details)

Litigation (Details) - WesternGeco

May 16, 2017USD ($)

Nov. 25, 2016USD ($)

May 31, 2014USD ($)

Apr. 30, 2014USD ($)

Oct. 31, 2013USD ($)

Aug. 31, 2012USD ($)Patent

Jun. 30, 2009Patent

Sep. 30, 2018USD ($)

Jun. 30, 2018USD ($)Patent

Mar. 31, 2018USD ($)

Dec. 31, 2017USD ($)

Sep. 30, 2017USD ($)

Jun. 30, 2018USD ($)Patent

Sep. 30, 2018USD ($)

Jul. 02, 2015USD ($)

Jun. 30, 2015USD ($)

Loss Contingencies [Line Items]

Number of patent apparatus claims contained | Patent

4

4

Number of patents invalidated | Patent

4

Number of patents pending | Patent

6

6

Settled Litigation

Loss Contingencies [Line Items]

Damages awarded

$ 5,000,000

$ 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

Loss contingency accrual

$ 0

$ 1,250,000

$ 1,250,000

Amount of royalty damages paid

$ 20,800,000

$ 1,250,000

$ 1,250,000

$ 625,000

$ 625,000

Settled Litigation | Forecast

Loss Contingencies [Line Items]

Amount of royalty damages paid

$ 1,250,000

$ 3,750,000

Settled Litigation | Lost Royalties

Loss Contingencies [Line Items]

Damages awarded

$ 12,500,000

Settled Litigation | Lost Profits

Loss Contingencies [Line Items]

Loss contingency accrual

$ 123,800,000

$ 22,000,000

Pending Litigation | Lost Profits

Loss Contingencies [Line Items]

Damages awarded

$ 93,400,000

Other Expense, Net (Details)

Other Expense, Net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Other Income and Expenses [Abstract]
Accrual for loss related to legal proceedings	$ 0	$ 0	$ 0	$ (5,000)
Other income (expense), net	84	192	(707)	124
Total other expense, net	$ 84	$ 192	$ (707)	$ (4,876)

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials and subassemblies	$ 19,988	$ 20,448
Work-in-process	1,476	1,146
Finished goods	8,441	7,953
Reserve for excess and obsolete inventories	(14,980)	(15,039)
Total	$ 14,925	$ 14,508

Accumulated Other Comprehensi47

Accumulated Other Comprehensive Loss (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive loss at December 31, 2017	$ 30,806
Net current-period other comprehensive income	(755)
Accumulated other comprehensive loss at June 30, 2018	33,921
Foreign currency translation adjustments
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive loss at December 31, 2017	(18,879)
Net current-period other comprehensive income	(755)
Accumulated other comprehensive loss at June 30, 2018	(19,634)
AOCI attributable to parent
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Accumulated other comprehensive loss at December 31, 2017	(18,879)
Accumulated other comprehensive loss at June 30, 2018	$ (19,634)

Supplemental Cash Flow Inform48

Supplemental Cash Flow Information and Non-cash Activity (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash paid during the period for:
Interest	$ 6,620	$ 7,075
Income taxes	1,354	2,364
Non-cash items from investing and financing activities:
Investment in multi-client data library in accounts payable and accrued expenses	$ 0	$ 4,561

Fair Value of Financial Instr49

Fair Value of Financial Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Carrying amounts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of long-term debt	$ 121	$ 160.7
Fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of long-term debt	$ 121	$ 158.2

Stockholder's Equity and Stoc50

Stockholder's Equity and Stock-Based Compensation Expense - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	Mar. 21, 2019	Feb. 21, 2018	Mar. 31, 2018	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of warrants issued to purchase additional shares of common stock (in warrants)		1,820,000
Net proceeds from issuance of stock				$ 47,219	$ 0
Amount of debt retired			$ 28,500
Warrant exercise price (usd per warrant)		$ 33.60
Number of shares issued or reserved for future issuance under outstanding stock options				815,791	838,582
Stock-based compensation expense				$ 2,043	$ 1,169
Forecast
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Potential additional proceeds from exercise of warrants	$ 61,200
Restricted Stock and Unit Awards
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares of restricted stock and shares reserved for restricted stock units outstanding				128,131	187,675	201,702
Stock Appreciation Rights
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares issued or reserved for future issuance under outstanding stock options				530,865	1,416,133	565,864
Stock-based compensation expense				$ 2,500	$ 300
Common stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
New issues of equity in public offering (in shares)		1,820,000
Public offering price of stock (usd per share)		$ 27.50

Stockholder's Equity and Stoc51

Stockholder's Equity and Stock-Based Compensation Expense - Activity Related to Stock Options, Restricted Stock Restricted Stock Unit Awards and Stock Appreciation Rights (Details)	6 Months Ended
	Jun. 30, 2018shares
Stock Options and Stock Appreciation Rights
Ending balance (In shares)	815,791
Stock Options
Stock Options and Stock Appreciation Rights
Beginning balance (in shares)	890,341
Granted (in shares)	10,000
Exercised (in shares)	(70,086)
Cancelled/forfeited (in shares)	(14,464)
Ending balance (In shares)	815,791
Restricted Stock and Unit Awards
Restricted Stock and Unit Awards
Beginning balance (in shares)	201,702
Granted (in shares)	66,773
Vested (in shares)	(137,844)
Cancelled/forfeited (in shares)	(2,500)
Ending balance (in shares)	128,131
Stock Appreciation Rights
Stock Options and Stock Appreciation Rights
Beginning balance (in shares)	565,864
Granted (in shares)	0
Exercised (in shares)	(34,999)
Cancelled/forfeited (in shares)	0
Ending balance (In shares)	530,865

Condensed Consolidating Finan52

Condensed Consolidating Financial Information - Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017
Current assets:
Cash and cash equivalents	$ 44,349	$ 52,056	$ 43,272
Accounts receivable, net	15,375	19,478
Unbilled receivables	15,046	37,304
Inventories	14,925	14,508
Prepaid expenses and other current assets	5,961	7,643
Total current assets	95,656	130,989
Deferred income tax asset	3,614	1,753
Property, plant, equipment and seismic rental equipment, net	48,442	52,153
Multi-client data library, net	82,576	89,300
Investment in subsidiaries	0	0
Goodwill	23,543	24,089
Intangible assets, net	1,082	1,666
Intercompany receivables	0	0
Other assets	731	1,119
Total assets	255,644	301,069
Current liabilities:
Current maturities of long-term debt	459	40,024
Accounts payable	26,173	24,951
Accrued expenses	28,936	38,697
Accrued multi-client data library royalties	27,988	27,035
Deferred revenue	8,402	8,910
Total current liabilities	91,958	139,617
Long-term debt, net of current maturities	117,159	116,720
Intercompany payables	0	0
Other long-term liabilities	12,606	13,926
Total liabilities	221,723	270,263
Equity:
Common stock	140	120
Additional paid-in capital	951,349	903,247
Accumulated earnings (deficit)	(899,213)	(854,921)
Accumulated other comprehensive income (loss)	(19,634)	(18,879)
Due from ION Geophysical Corporation	0	0
Total stockholders’ equity	32,642	29,567
Noncontrolling interest	1,279	1,239
Total equity	33,921	30,806
Total liabilities and equity	255,644	301,069
ION Geophysical Corporation
Current assets:
Cash and cash equivalents	34,888		18,258
The Guarantors
Current assets:
Cash and cash equivalents	0		0
All Other Subsidiaries
Current assets:
Cash and cash equivalents	9,461		$ 25,014
Reportable Legal Entities | ION Geophysical Corporation
Current assets:
Cash and cash equivalents	34,888	39,344
Accounts receivable, net	8	50
Unbilled receivables	0	0
Inventories	0	0
Prepaid expenses and other current assets	2,496	2,427
Total current assets	37,392	41,821
Deferred income tax asset	1,263	1,264
Property, plant, equipment and seismic rental equipment, net	448	511
Multi-client data library, net	0	0
Investment in subsidiaries	681,858	693,679
Goodwill	0	0
Intangible assets, net	0	0
Intercompany receivables	0	0
Other assets	515	686
Total assets	721,476	737,961
Current liabilities:
Current maturities of long-term debt	329	39,774
Accounts payable	3,840	1,774
Accrued expenses	11,598	12,284
Accrued multi-client data library royalties	0	0
Deferred revenue	0	0
Total current liabilities	15,767	53,832
Long-term debt, net of current maturities	117,159	116,691
Intercompany payables	555,466	537,417
Other long-term liabilities	442	454
Total liabilities	688,834	708,394
Equity:
Common stock	140	120
Additional paid-in capital	951,349	903,247
Accumulated earnings (deficit)	(899,213)	(854,921)
Accumulated other comprehensive income (loss)	(19,634)	(18,879)
Due from ION Geophysical Corporation	0	0
Total stockholders’ equity	32,642	29,567
Noncontrolling interest	0	0
Total equity	32,642	29,567
Total liabilities and equity	721,476	737,961
Reportable Legal Entities | The Guarantors
Current assets:
Cash and cash equivalents	0	0
Accounts receivable, net	9,034	9,374
Unbilled receivables	9,594	16,666
Inventories	9,352	8,686
Prepaid expenses and other current assets	833	769
Total current assets	28,813	35,495
Deferred income tax asset	0	0
Property, plant, equipment and seismic rental equipment, net	6,419	7,170
Multi-client data library, net	55,481	62,438
Investment in subsidiaries	330,741	321,934
Goodwill	0	0
Intangible assets, net	1,082	1,666
Intercompany receivables	92,164	132,184
Other assets	145	145
Total assets	514,845	561,032
Current liabilities:
Current maturities of long-term debt	130	250
Accounts payable	19,430	20,982
Accrued expenses	10,910	15,601
Accrued multi-client data library royalties	27,773	26,824
Deferred revenue	2,220	3,201
Total current liabilities	60,463	66,858
Long-term debt, net of current maturities	0	29
Intercompany payables	0	0
Other long-term liabilities	5,908	6,084
Total liabilities	66,371	72,971
Equity:
Common stock	290,460	290,460
Additional paid-in capital	180,700	180,701
Accumulated earnings (deficit)	234,434	248,770
Accumulated other comprehensive income (loss)	4,324	4,372
Due from ION Geophysical Corporation	(261,444)	(236,242)
Total stockholders’ equity	448,474	488,061
Noncontrolling interest	0	0
Total equity	448,474	488,061
Total liabilities and equity	514,845	561,032
Reportable Legal Entities | All Other Subsidiaries
Current assets:
Cash and cash equivalents	9,461	12,712
Accounts receivable, net	6,333	10,054
Unbilled receivables	5,452	20,638
Inventories	5,573	5,822
Prepaid expenses and other current assets	2,632	4,447
Total current assets	29,451	53,673
Deferred income tax asset	2,351	489
Property, plant, equipment and seismic rental equipment, net	41,575	44,472
Multi-client data library, net	27,095	26,862
Investment in subsidiaries	0	0
Goodwill	23,543	24,089
Intangible assets, net	0	0
Intercompany receivables	122,612	90,227
Other assets	71	288
Total assets	246,698	240,100
Current liabilities:
Current maturities of long-term debt	0	0
Accounts payable	2,903	2,195
Accrued expenses	6,428	10,812
Accrued multi-client data library royalties	215	211
Deferred revenue	6,182	5,709
Total current liabilities	15,728	18,927
Long-term debt, net of current maturities	0	0
Intercompany payables	0	0
Other long-term liabilities	6,256	7,388
Total liabilities	21,984	26,315
Equity:
Common stock	47,776	49,394
Additional paid-in capital	203,907	202,290
Accumulated earnings (deficit)	71,908	59,307
Accumulated other comprehensive income (loss)	(20,910)	(19,681)
Due from ION Geophysical Corporation	(79,246)	(78,764)
Total stockholders’ equity	223,435	212,546
Noncontrolling interest	1,279	1,239
Total equity	224,714	213,785
Total liabilities and equity	246,698	240,100
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
Deferred income tax asset	0	0
Property, plant, equipment and seismic rental equipment, net	0	0
Multi-client data library, net	0	0
Investment in subsidiaries	(1,012,599)	(1,015,613)
Goodwill	0	0
Intangible assets, net	0	0
Intercompany receivables	(214,776)	(222,411)
Other assets	0	0
Total assets	(1,227,375)	(1,238,024)
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	(555,466)	(537,417)
Other long-term liabilities	0	0
Total liabilities	(555,466)	(537,417)
Equity:
Common stock	(338,236)	(339,854)
Additional paid-in capital	(384,607)	(382,991)
Accumulated earnings (deficit)	(306,342)	(308,077)
Accumulated other comprehensive income (loss)	16,586	15,309
Due from ION Geophysical Corporation	340,690	315,006
Total stockholders’ equity	(671,909)	(700,607)
Noncontrolling interest	0	0
Total equity	(671,909)	(700,607)
Total liabilities and equity	$ (1,227,375)	$ (1,238,024)

Condensed Consolidating Finan53

Condensed Consolidating Financial Information - Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Condensed Income Statements, Captions [Line Items]
Net revenues	$ 24,743	$ 46,001	$ 58,251	$ 78,557
Cost of sales	26,260	30,383	52,915	56,838
Gross profit (loss)	(1,517)	15,618	5,336	21,719
Total operating expenses	21,002	19,190	40,495	39,203
Loss from operations	(22,519)	(3,572)	(35,159)	(17,484)
Interest expense, net	(2,911)	(4,241)	(6,747)	(8,705)
Intercompany interest, net	0	0	0	0
Equity in earnings (losses) of investments	0	0	0	0
Other income (expense)	84	192	(707)	(4,876)
Loss before income taxes	(25,346)	(7,621)	(42,613)	(31,065)
Income tax expense (benefit)	154	2,402	1,226	1,984
Net loss	(25,500)	(10,023)	(43,839)	(33,049)
Net income attributable to noncontrolling interest	(366)	(418)	(453)	(734)
Net loss attributable to ION	(25,866)	(10,441)	(44,292)	(33,783)
Comprehensive net loss	(28,080)	(8,824)	(44,594)	(31,333)
Comprehensive (income) loss, attributable to noncontrolling interest	(366)	(418)	(453)	(734)
Comprehensive net loss attributable to ION	(28,446)	(9,242)	(45,047)	(32,067)
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 (loss)	0	0	0	0
Total operating expenses	10,334	8,072	19,243	17,412
Loss from operations	(10,334)	(8,072)	(19,243)	(17,412)
Interest expense, net	(2,947)	(4,183)	(6,830)	(8,643)
Intercompany interest, net	304	265	577	593
Equity in earnings (losses) of investments	(11,202)	1,910	(16,117)	(3,134)
Other income (expense)	(37)	(328)	(225)	(5,087)
Loss before income taxes	(24,216)	(10,408)	(41,838)	(33,683)
Income tax expense (benefit)	1,650	33	2,454	100
Net loss	(25,866)	(10,441)	(44,292)	(33,783)
Net income attributable to noncontrolling interest	0	0	0	0
Net loss attributable to ION	(25,866)	(10,441)	(44,292)	(33,783)
Comprehensive net loss	(28,446)	(9,242)	(45,047)	(32,067)
Comprehensive (income) loss, attributable to noncontrolling interest	0	0	0	0
Comprehensive net loss attributable to ION	(28,446)	(9,242)	(45,047)	(32,067)
Reportable Legal Entities | The Guarantors
Condensed Income Statements, Captions [Line Items]
Net revenues	12,466	14,945	24,254	27,979
Cost of sales	17,746	18,369	34,541	35,956
Gross profit (loss)	(5,280)	(3,424)	(10,287)	(7,977)
Total operating expenses	7,145	6,712	14,139	12,871
Loss from operations	(12,425)	(10,136)	(24,426)	(20,848)
Interest expense, net	(7)	(69)	(13)	(96)
Intercompany interest, net	(2,811)	(1,643)	(5,130)	(3,140)
Equity in earnings (losses) of investments	4,162	9,077	14,382	17,853
Other income (expense)	3	(1)	68	(340)
Loss before income taxes	(11,078)	(2,772)	(15,119)	(6,571)
Income tax expense (benefit)	(418)	(5,171)	(783)	(5,213)
Net loss	(10,660)	2,399	(14,336)	(1,358)
Net income attributable to noncontrolling interest	0	0	0	0
Net loss attributable to ION	(10,660)	2,399	(14,336)	(1,358)
Comprehensive net loss	(10,660)	2,399	(14,384)	(1,406)
Comprehensive (income) loss, attributable to noncontrolling interest	0	0	0	0
Comprehensive net loss attributable to ION	(10,660)	2,399	(14,384)	(1,406)
Reportable Legal Entities | All Other Subsidiaries
Condensed Income Statements, Captions [Line Items]
Net revenues	12,277	31,056	33,997	50,578
Cost of sales	8,514	12,014	18,374	20,882
Gross profit (loss)	3,763	19,042	15,623	29,696
Total operating expenses	3,523	4,406	7,113	8,920
Loss from operations	240	14,636	8,510	20,776
Interest expense, net	43	11	96	34
Intercompany interest, net	2,507	1,378	4,553	2,547
Equity in earnings (losses) of investments	0	0	0	0
Other income (expense)	118	521	(550)	551
Loss before income taxes	2,908	16,546	12,609	23,908
Income tax expense (benefit)	(1,078)	7,540	(445)	7,097
Net loss	3,986	9,006	13,054	16,811
Net income attributable to noncontrolling interest	(366)	(418)	(453)	(734)
Net loss attributable to ION	3,620	8,588	12,601	16,077
Comprehensive net loss	1,023	9,852	11,825	17,906
Comprehensive (income) loss, attributable to noncontrolling interest	(366)	(418)	(453)	(734)
Comprehensive net loss attributable to ION	657	9,434	11,372	17,172
Consolidating Adjustments
Condensed Income Statements, Captions [Line Items]
Net revenues	0	0	0	0
Cost of sales	0	0	0	0
Gross profit (loss)	0	0	0	0
Total operating expenses	0	0	0	0
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	7,040	(10,987)	1,735	(14,719)
Other income (expense)	0	0	0	0
Loss before income taxes	7,040	(10,987)	1,735	(14,719)
Income tax expense (benefit)	0	0	0	0
Net loss	7,040	(10,987)	1,735	(14,719)
Net income attributable to noncontrolling interest	0	0	0	0
Net loss attributable to ION	7,040	(10,987)	1,735	(14,719)
Comprehensive net loss	10,003	(11,833)	3,012	(15,766)
Comprehensive (income) loss, attributable to noncontrolling interest	0	0	0	0
Comprehensive net loss attributable to ION	$ 10,003	$ (11,833)	$ 3,012	$ (15,766)

Condensed Consolidating Finan54

Condensed Consolidating Financial Information - Cash Flow (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$ (204)	$ 3,491
Cash flows from investing activities:
Cash invested in multi-client data library	(13,782)	(8,482)
Purchase of property, plant, equipment and seismic rental assets	(424)	(915)
Net cash used in investing activities	(14,206)	(9,397)
Cash flows from financing activities:
Payments under revolving line of credit	(10,000)	0
Payments on notes payable and long-term debt	(29,699)	(3,157)
Intercompany lending	0	0
Net proceeds from issuance of stock	47,219	0
Dividend payment to non-controlling interest	(200)	0
Other financing activities	(881)	(296)
Net cash provided by (used in) financing activities	6,439	(3,453)
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash	264	(169)
Net decrease in cash, cash equivalents and restricted cash	(7,707)	(9,528)
Cash, cash equivalents and restricted cash at beginning of period	52,419	53,433
Cash, cash equivalents and restricted cash at end of period	44,712	43,905
ION Geophysical Corporation
Cash flows from operating activities:
Net cash provided by (used in) operating activities	(19,329)	(1,879)
Cash flows from investing activities:
Cash invested in multi-client data library	0	0
Purchase of property, plant, equipment and seismic rental assets	(250)	(165)
Net cash used in investing activities	(250)	(165)
Cash flows from financing activities:
Payments under revolving line of credit	(10,000)
Payments on notes payable and long-term debt	(29,570)	(1,018)
Intercompany lending	8,555	(1,574)
Net proceeds from issuance of stock	47,219
Dividend payment to non-controlling interest	(200)
Other financing activities	(881)	(296)
Net cash provided by (used in) financing activities	15,123	(2,888)
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash	0	0
Net decrease in cash, cash equivalents and restricted cash	(4,456)	(4,932)
Cash, cash equivalents and restricted cash at beginning of period	39,707	23,823
Cash, cash equivalents and restricted cash at end of period	35,251	18,891
The Guarantors
Cash flows from operating activities:
Net cash provided by (used in) operating activities	21,410	7,416
Cash flows from investing activities:
Cash invested in multi-client data library	(10,605)	(3,962)
Purchase of property, plant, equipment and seismic rental assets	(6)	(669)
Net cash used in investing activities	(10,611)	(4,631)
Cash flows from financing activities:
Payments under revolving line of credit	0
Payments on notes payable and long-term debt	(129)	(2,081)
Intercompany lending	(10,670)	(704)
Net proceeds from issuance of stock	0
Dividend payment to non-controlling interest	0
Other financing activities	0	0
Net cash provided by (used in) financing activities	(10,799)	(2,785)
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash	0	0
Net decrease in cash, cash equivalents and restricted cash	0	0
Cash, cash equivalents and restricted cash at beginning of period	0	0
Cash, cash equivalents and restricted cash at end of period	0	0
All Other Subsidiaries
Cash flows from operating activities:
Net cash provided by (used in) operating activities	(2,285)	(2,046)
Cash flows from investing activities:
Cash invested in multi-client data library	(3,177)	(4,520)
Purchase of property, plant, equipment and seismic rental assets	(168)	(81)
Net cash used in investing activities	(3,345)	(4,601)
Cash flows from financing activities:
Payments under revolving line of credit	0
Payments on notes payable and long-term debt	0	(58)
Intercompany lending	2,115	2,278
Net proceeds from issuance of stock	0
Dividend payment to non-controlling interest	0
Other financing activities	0	0
Net cash provided by (used in) financing activities	2,115	2,220
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash	264	(169)
Net decrease in cash, cash equivalents and restricted cash	(3,251)	(4,596)
Cash, cash equivalents and restricted cash at beginning of period	12,712	29,610
Cash, cash equivalents and restricted cash at end of period	$ 9,461	$ 25,014

Condensed Consolidating Finan55

Condensed Consolidating Financial Information - Cash Flow, Restricted Cash Reconciliation (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Restricted Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 44,349	$ 52,056	$ 43,272
Total cash, cash equivalents, and restricted cash shown in statement of cash flows	44,712	52,419	43,905	$ 53,433
Prepaid expenses and other current assets
Restricted Cash and Cash Equivalents [Abstract]
Restricted cash	60		330
Other long-term assets
Restricted Cash and Cash Equivalents [Abstract]
Restricted cash	303		303
ION Geophysical Corporation
Restricted Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	34,888		18,258
Total cash, cash equivalents, and restricted cash shown in statement of cash flows	35,251	39,707	18,891	23,823
ION Geophysical Corporation | Prepaid expenses and other current assets
Restricted Cash and Cash Equivalents [Abstract]
Restricted cash	60		330
ION Geophysical Corporation | Other long-term assets
Restricted Cash and Cash Equivalents [Abstract]
Restricted cash	303		303
The Guarantors
Restricted Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	0		0
Total cash, cash equivalents, and restricted cash shown in statement of cash flows	0	0	0	0
The Guarantors | Prepaid expenses and other current assets
Restricted Cash and Cash Equivalents [Abstract]
Restricted cash	0		0
The Guarantors | Other long-term assets
Restricted Cash and Cash Equivalents [Abstract]
Restricted cash	0		0
All Other Subsidiaries
Restricted Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	9,461		25,014
Total cash, cash equivalents, and restricted cash shown in statement of cash flows	9,461	$ 12,712	25,014	$ 29,610
All Other Subsidiaries | Prepaid expenses and other current assets
Restricted Cash and Cash Equivalents [Abstract]
Restricted cash	0		0
All Other Subsidiaries | Other long-term assets
Restricted Cash and Cash Equivalents [Abstract]
Restricted cash	$ 0		$ 0