Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 03, 2020 | Jun. 30, 2019 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ION GEOPHYSICAL CORP | ||
Entity Central Index Key | 0000866609 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Amendment Flag | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 89.2 | ||
Entity Common Stock, Shares Outstanding | 14,224,787 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 33,065 | $ 33,551 | $ 52,056 | |
Accounts receivable, net | 29,548 | 26,128 | ||
Unbilled receivables | 11,815 | 44,032 | ||
Inventories, net | 12,187 | 14,130 | ||
Prepaid expenses and other current assets | 6,012 | 7,782 | ||
Total current assets | 92,627 | 125,623 | ||
Deferred income tax asset | 8,734 | 7,191 | ||
Property, plant and equipment, net | 13,188 | |||
Property, plant and equipment, net | 13,041 | |||
Multi-client data library, net | 60,384 | 73,544 | ||
Goodwill | 23,585 | 22,915 | 24,089 | |
Right-of-use assets | 32,546 | 47,803 | ||
Other assets | 2,130 | 2,435 | ||
Total assets | 233,194 | 292,552 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 2,107 | 2,228 | ||
Accounts payable | 49,316 | 34,913 | ||
Accrued expenses | 30,328 | 31,411 | ||
Accrued multi-client data library royalties | 18,831 | 29,256 | ||
Deferred revenue | 4,551 | 7,710 | ||
Current maturities of operating lease liabilities | 11,055 | 12,214 | ||
Total current liabilities | 116,188 | 117,732 | ||
Long-term debt, net of current maturities | 119,352 | 119,513 | ||
Operating lease liabilities, net of current maturities | 30,833 | 45,592 | ||
Other long-term liabilities | 1,453 | 1,891 | ||
Total liabilities | 267,826 | 284,728 | ||
(Deficit) Equity: | ||||
Common stock, $0.01 par value; authorized 26,666,667 shares; outstanding 14,224,787 and 14,015,615 shares at December 31, 2019 and 2018, respectively. | 142 | 140 | ||
Additional paid-in capital | 956,647 | 952,626 | ||
Accumulated deficit | (974,291) | (926,092) | ||
Accumulated other comprehensive loss | (19,318) | (20,442) | ||
Total stockholders’ (deficit) equity | (36,820) | 6,232 | ||
Noncontrolling interests | 2,188 | 1,592 | ||
Total (deficit) equity | (34,632) | 7,824 | $ 30,806 | $ 53,398 |
Total liabilities and (deficit) equity | $ 233,194 | $ 292,552 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 26,666,667 | 26,666,667 |
Common stock, shares outstanding (in shares) | 14,224,787 | 14,015,615 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net revenues | $ 174,679,000 | $ 180,045,000 | $ 197,554,000 |
Cost of services and products | 114,657,000 | 120,425,000 | 121,915,000 |
Impairment of multi-client data library | 9,072,000 | 0 | 2,304,000 |
Gross profit | 60,022,000 | 59,620,000 | 75,639,000 |
Operating expenses: | |||
Research, development and engineering | 19,025,000 | 18,182,000 | 16,431,000 |
Marketing and sales | 23,207,000 | 21,793,000 | 20,778,000 |
General, administrative and other operating expenses | 42,249,000 | 37,364,000 | 47,129,000 |
Impairment of long-lived assets | 0 | 36,553,000 | 0 |
Total operating expenses | 84,481,000 | 113,892,000 | 84,338,000 |
Income (loss) from operations | (24,459,000) | (54,272,000) | (8,699,000) |
Interest expense, net | (13,074,000) | (12,972,000) | (16,709,000) |
Other expense, net | (1,617,000) | (436,000) | (3,945,000) |
Loss before income taxes | (39,150,000) | (67,680,000) | (29,353,000) |
Income tax expense | 8,064,000 | 2,718,000 | 24,000 |
Net income (loss) | (47,214,000) | (70,398,000) | (29,377,000) |
Less: Net income attributable to noncontrolling interests | (985,000) | (773,000) | (865,000) |
Net loss attributable to ION | $ (48,199,000) | $ (71,171,000) | $ (30,242,000) |
Net loss per share: | |||
Basic (usd per share) | $ (3.41) | $ (5.20) | $ (2.55) |
Diluted (usd per share) | $ (3.41) | $ (5.20) | $ (2.55) |
Weighted average number of common shares outstanding: | |||
Basic (in shares) | 14,131 | 13,692 | 11,876 |
Diluted (in shares) | 14,131 | 13,692 | 11,876 |
Service | |||
Net revenues | $ 131,280,000 | $ 139,038,000 | $ 159,410,000 |
Cost of services and products | 83,519,000 | 100,557,000 | 100,820,000 |
Product | |||
Net revenues | 43,399,000 | 41,007,000 | 38,144,000 |
Cost of services and products | $ 22,066,000 | $ 19,868,000 | $ 18,791,000 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (47,214) | $ (70,398) | $ (29,377) |
Other comprehensive income (loss), net of taxes, as appropriate: | |||
Foreign currency translation adjustments | 1,124 | (1,563) | 2,869 |
Comprehensive net loss | (46,090) | (71,961) | (26,508) |
Comprehensive income attributable to noncontrolling interests | (985) | (773) | (865) |
Comprehensive net loss attributable to ION | $ (47,075) | $ (72,734) | $ (27,373) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net loss | $ (47,214,000) | $ (70,398,000) | $ (29,377,000) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization (other than multi-client library) | 3,657,000 | 8,763,000 | 16,592,000 |
Amortization of multi-client data library | 39,541,000 | 48,988,000 | 47,102,000 |
Impairment of long-lived assets | 0 | 36,553,000 | 0 |
Impairment of multi-client data library | 9,072,000 | 0 | 2,304,000 |
Stock-based compensation expense | 4,701,000 | 3,337,000 | 2,552,000 |
Accrual of loss contingency related to legal proceedings | 0 | 0 | 5,000,000 |
Write-down of excess and obsolete inventory | 517,000 | 665,000 | 398,000 |
Deferred income taxes | (1,940,000) | (6,252,000) | (5,420,000) |
Change in operating assets and liabilities: | |||
Accounts receivable | (3,265,000) | (7,024,000) | 1,692,000 |
Unbilled receivables | 32,055,000 | (5,245,000) | (23,947,000) |
Inventories | 1,067,000 | (353,000) | 190,000 |
Accounts payable, accrued expenses and accrued royalties | (2,492,000) | (7,600,000) | 1,443,000 |
Deferred revenue | (3,207,000) | (1,112,000) | 5,131,000 |
Other assets and liabilities | 1,658,000 | 6,776,000 | 3,952,000 |
Net cash provided by operating activities | 34,150,000 | 7,098,000 | 27,612,000 |
Cash flows from investing activities: | |||
Investment in multi-client data library | (28,804,000) | (28,276,000) | (23,710,000) |
Purchase of property, plant and equipment | (2,411,000) | (1,514,000) | (1,063,000) |
Net cash used in investing activities | (31,215,000) | (29,790,000) | (24,773,000) |
Cash flows from financing activities: | |||
Borrowings under revolving line of credit | 40,000,000 | 0 | 0 |
Repayments under revolving line of credit | 40,000,000 | 10,000,000 | 0 |
Payments on notes payable and long-term debt | (2,553,000) | (30,807,000) | (4,816,000) |
Cost associated with issuance of debt | 0 | (1,247,000) | (53,000) |
Net proceeds from issuance of stocks | 0 | 46,999,000 | 0 |
Proceeds from employee stock purchases and exercise of stock options | 141,000 | 214,000 | 1,619,000 |
Other financing activities | (1,134,000) | (1,351,000) | (343,000) |
Net cash provided by (used in) financing activities | (3,546,000) | 3,808,000 | (3,593,000) |
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash | (125,000) | 319,000 | (260,000) |
Net decrease in cash, cash equivalents and restricted cash | (736,000) | (18,565,000) | (1,014,000) |
Cash, cash equivalents and restricted cash at beginning of period | 33,854,000 | 52,419,000 | 53,433,000 |
Cash, cash equivalents and restricted cash at end of period | $ 33,118,000 | $ 33,854,000 | $ 52,419,000 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and cash equivalents | $ 33,065 | $ 33,551 | $ 52,056 | |
Total cash, cash equivalents, and restricted cash shown in consolidated statements of cash flows | 33,118 | 33,854 | 52,419 | $ 53,433 |
Prepaid expenses and other current assets | ||||
Restricted cash | 53 | 0 | 60 | |
Other long-term assets | ||||
Restricted cash | $ 0 | $ 303 | $ 303 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ (DEFICIT) EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Noncontrolling Interests |
Beginning balance (in shares) at Dec. 31, 2016 | 11,792,447 | |||||
Beginning balance at Dec. 31, 2016 | $ 53,398 | $ 118 | $ 899,198 | $ (824,679) | $ (21,748) | $ 509 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (29,377) | (30,242) | 865 | |||
Translation adjustment | 2,834 | 2,869 | (35) | |||
Dividend payment to noncontrolling interest | (100) | (100) | ||||
Stock-based compensation expense | $ 2,552 | 2,552 | ||||
Exercise of stock options (in shares) | 15,000 | 15,000 | ||||
Exercise of stock options | $ 46 | $ 0 | 46 | |||
Vesting of restricted stock units/ awards (in shares) | 115,576 | |||||
Vesting of restricted stock units/awards | 0 | $ 1 | (1) | |||
Vested restricted stock cancelled for employee minimum income taxes (in shares) | (23,889) | |||||
Vested restricted stock cancelled for employee minimum income taxes | (120) | (120) | ||||
Employee purchases of unregistered shares of common stock (in shares) | 120,567 | |||||
Employee purchases of unregistered shares of common stock | 1,573 | $ 1 | 1,572 | |||
Ending balance (in shares) at Dec. 31, 2017 | 12,019,701 | |||||
Ending balance at Dec. 31, 2017 | 30,806 | $ 120 | 903,247 | (854,921) | (18,879) | 1,239 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (70,398) | (71,171) | 773 | |||
Translation adjustment | (1,783) | (1,563) | (220) | |||
Dividend payment to noncontrolling interest | (200) | (200) | ||||
Stock-based compensation expense | $ 3,337 | 3,337 | ||||
Exercise of stock options (in shares) | 70,086 | 70,086 | ||||
Exercise of stock options | $ 214 | $ 1 | 213 | |||
Vesting of restricted stock units/ awards (in shares) | 151,852 | |||||
Vesting of restricted stock units/awards | 0 | $ 1 | (1) | |||
Vested restricted stock cancelled for employee minimum income taxes (in shares) | (46,024) | |||||
Vested restricted stock cancelled for employee minimum income taxes | (1,151) | (1,151) | ||||
Public equity offering (in shares) | 1,820,000 | |||||
Public equity offering | 46,999 | $ 18 | 46,981 | |||
Ending balance (in shares) at Dec. 31, 2018 | 14,015,615 | |||||
Ending balance at Dec. 31, 2018 | 7,824 | $ 140 | 952,626 | (926,092) | (20,442) | 1,592 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net (loss) income | (47,214) | (48,199) | 985 | |||
Translation adjustment | 1,050 | 1,124 | (74) | |||
Dividend payment to noncontrolling interest | (315) | (315) | ||||
Stock-based compensation expense | $ 4,701 | 4,701 | ||||
Exercise of stock options (in shares) | 86,900 | 86,900 | ||||
Exercise of stock options | $ 141 | $ 1 | 140 | |||
Vesting of restricted stock units/ awards (in shares) | 225,860 | |||||
Vesting of restricted stock units/awards | 0 | $ 2 | (2) | |||
Vested restricted stock cancelled for employee minimum income taxes (in shares) | (103,588) | |||||
Vested restricted stock cancelled for employee minimum income taxes | (819) | $ (1) | (818) | |||
Ending balance (in shares) at Dec. 31, 2019 | 14,224,787 | |||||
Ending balance at Dec. 31, 2019 | $ (34,632) | $ 142 | $ 956,647 | $ (974,291) | $ (19,318) | $ 2,188 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies General Description and Principles of Consolidation ION Geophysical Corporation and its subsidiaries offer a full suite of services and products for seismic data acquisition and processing. The consolidated financial statements include the accounts of ION Geophysical Corporation and its majority-owned subsidiaries (collectively referred to as the “Company” or “ION”). Intercompany balances and transactions have been eliminated. Certain reclassifications were made to previously reported amounts in the consolidated financial statements and notes thereto to make them consistent with the current period presentation, including the change in reportable segments presentation which had no impact on the consolidated financial statements and the recognition of right-of-use (“ROU”) assets and operating lease liabilities on the consolidated balance sheets as a result of the adoption of the new lease standard. See Footnote 2 “Recent Accounting Pronouncements.” and Footnote 3 “Segment and Geographic Information.” Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates are made at discrete points in time based on relevant market information. These estimates may be subjective in nature and involve uncertainties and matters of judgment and, therefore, cannot be determined with precision. Areas involving significant estimates include, but are not limited to, collectability of accounts and unbilled receivables, inventory valuation reserves, sales forecasts related to multi-client data libraries, impairment of property, plant and equipment and goodwill and deferred taxes. Actual results could materially differ from those estimates. Foreign Currency Transactions Assets and liabilities of the Company’s subsidiaries operating outside the United States that have a functional currency other than the U.S. dollar have been translated to U.S. dollars using the exchange rate in effect at the balance sheet date. Results of foreign operations have been translated using the average exchange rate during the periods of operation. Resulting translation adjustments have been recorded as a component of accumulated other comprehensive loss . Foreign currency transaction gains and losses, as they occur, are included in “Other expense, net” on the consolidated statements of operations. Total foreign currency transaction losses were $1.3 million , $0.4 million and $1.6 million for 2019 , 2018 and 2017 , respectively. The foreign currency transaction losses are primarily due to the currency rate fluctuations between the US dollar and the Brazilian real related to the Company’s operations in Brazil. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company places its temporary cash investments with high credit quality financial institutions. At times such investments may be in excess of the Federal Deposit Insurance Corporation insurance limit. At December 31, 2019 and 2018 , there was $0.1 million and $0.3 million , respectively, of long-term and short-term restricted cash used to secure standby and commercial letters of credit, which is included within “Other assets” and “Prepaid expenses and other current assets” in the consolidated balance sheets. Accounts and Unbilled Receivables Accounts and unbilled receivables are recorded at cost, less the related allowance for doubtful accounts. The Company considers current information and events regarding the customers’ ability to repay their obligations, such as the length of time the receivable balance is outstanding, the customers’ credit worthiness and historical experience. Unbilled receivables relate to revenues recognized on multi-client surveys, imaging services and 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. Inventories Inventories are stated at the lower of cost (primarily first-in, first-out method) or net realizable value. The Company provides reserves for estimated obsolescence or excess inventory equal to the difference between cost of inventory and its estimated net realizable value based upon assumptions about future demand for the Company’s products, market conditions and the risk of obsolescence driven by new product introductions. Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation expense is provided straight-line over the following estimated useful lives: Years Machinery and equipment 3-7 Buildings 5-25 Seismic rental equipment 3-5 Leased equipment and other 3-10 Expenditures for major renewals and betterments, that increase the value or extend the economic useful life of the asset, are capitalized and depreciated. Repairs and maintenance are charged to expense as incurred. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the accounts and any gain or loss is reflected in “Other expense, net” in the consolidated statements of operations. Long-lived Asset Impairment The Company evaluates the recoverability of long-lived assets, including property, plant and equipment, when indicators of impairment exist, relying on a number of factors including operating results, business plans, economic projections and anticipated future cash flows. Impairment is recognized whenever anticipated future undiscounted cash flows the assets are expected to generate are estimated to be less than its carrying value. The amount of the impairment recognized is the difference between the carrying value of the asset and its fair value. No indicators of impairment were noted for 2019 and as such no impairment charge was recognized. For 2018, the Company identified an indicator of impairment as it relates to its cable-based ocean bottom acquisition technologies and recognized an impairment charge of $36.6 million . Multi-Client Data Library The multi-client data library consists of seismic surveys that are offered for licensing to customers on a non-exclusive basis. The capitalized costs include costs paid to third parties for the acquisition of data and related activities associated with the data creation activity and direct internal processing costs, such as salaries, benefits, computer-related expenses and other costs incurred for seismic data project design and management. For 2019 , 2018 and 2017 , the Company capitalized, as part of its multi-client data library, $9.3 million , $11.9 million and $12.7 million , respectively, of direct internal processing costs. The Company’s method of amortizing the costs of an in-process multi-client data library (the period during which the seismic data is being acquired and/or processed, referred to as the “New Venture” phase) consists of determining the percentage of actual revenue recognized to the total estimated revenues (which includes both revenues estimated to be realized during the New Venture phase and estimated revenues from the licensing of the resulting “on-the-shelf” data survey) and multiplying that percentage by the total cost of the project (the sales forecast method). The Company considers a multi-client data survey to be complete when all work on the creation of the seismic data is finished and that data survey is available for licensing. Once a multi-client data survey is complete, the data survey is considered “on-the-shelf” and the Company’s method of amortization is then the greater of (i) the sales forecast method or (ii) the straight-line basis over a four-year period, applied on a cumulative basis at the individual survey level. Under this policy, the Company first records amortization using the sales forecast method. The cumulative amortization recorded for each survey is then compared with the cumulative straight-line amortization. The four-year period utilized in this cumulative comparison commences when the data survey is determined to be complete. If the cumulative straight-line amortization is higher for any specific survey, additional amortization expense is recorded, resulting in accumulated amortization being equal to the cumulative straight-line amortization for such survey. The Company has determined the amortization period of four years based upon its historical experience indicating that the majority of its revenues from multi-client surveys are derived during the acquisition and processing phases and during four years subsequent to survey completion. The Company estimates the ultimate revenue expected to be derived from a particular seismic data survey over its estimated useful economic life to determine the costs to amortize, if greater than straight-line amortization. That estimate is made by the Company at the project’s initiation. For a completed multi-client survey, the Company reviews the estimate quarterly. If during any such review, the Company determines that the ultimate revenue for a survey is expected to be materially more or less than the original estimate of ultimate revenue for such survey, the Company decreases or increases (as the case may be) the amortization rate attributable to the future revenue from such survey. In addition, in connection with such reviews, the Company evaluates the recoverability of the multi-client data library, and, if required, records an impairment charge with respect to such data. For 2019 , the Company wrote down its multi-client data library by $9.1 million for programs with capitalized costs exceeding the remaining sales forecast. . Goodwill Goodwill represents the excess of costs over the fair value of the net assets acquired in connection with a business combination. Goodwill is allocated to reporting units, which are either the operating segment or one reporting level below the operating segment, which includes E&P Technology & Services, Optimization Software & Services and Devices. Goodwill is not amortized, but rather tested and assessed for impairment at least annually on December 31, or more frequently, if facts and circumstances indicate that the carrying amount may exceed fair value. The Company begins with a qualitative assessment by evaluating relevant events or circumstances to determine whether it is more likely than not that the fair value of a reporting unit exceeds its carrying amount. If the Company is unable to conclude qualitatively that it is more likely than not that a reporting unit’s fair value exceeds its carrying value, then it will use a two-step quantitative assessment of the fair value of a reporting unit. To determine the fair value of these reporting units, the Company uses a discounted future returns valuation model, which includes a variety of level 3 inputs, as defined in Footnote 15 “Fair Value of Financial Instruments.” The key inputs for the model include the operational three -year forecast for the Company and the then-current market discount factor. Additionally, the Company compares the sum of the estimated fair values of the individual reporting units less consolidated debt to the Company’s overall market capitalization as reflected by the Company’s stock price. If the carrying value of a reporting unit that includes goodwill is determined to be more than the fair value of the reporting unit, there exists the possibility of goodwill impairment. An impairment loss is measured in two steps by first allocating the fair value of the reporting unit to net assets and liabilities including recorded and unrecorded intangible assets to determine the implied carrying value of goodwill. The next step is to measure the difference between the carrying value of goodwill and the implied carrying value of goodwill, and, if the implied carrying value of goodwill is less than the carrying value of goodwill, an impairment loss is recorded equal to the difference. The goodwill balance at December 31, 2019 was comprised of $20.6 million in the Optimization Software & Services and $2.9 million in the E&P Technology & Services reporting units. See further discussion below at Footnote 11 “ Goodwill .” Equity Method Investment The Company determined that INOVA Geophysical is a variable interest entity because the Company’s voting rights with respect to INOVA Geophysical are not proportionate to its ownership interest and substantially all of INOVA Geophysical’s activities are conducted on behalf of the Company and BGP Inc. (“BGP”), a subsidiary of China National Petroleum Corporation and a related party to the Company. The Company is not the primary beneficiary of INOVA Geophysical because it does not have the power to direct the activities of INOVA Geophysical that most significantly impact its economic performance. Accordingly, the Company does not consolidate INOVA Geophysical, but instead accounts for INOVA Geophysical using the equity method of accounting. Under this method, an investment is carried at the acquisition cost, plus the Company’s equity in undistributed earnings or losses since acquisition, less distributions received. In 2014, the Company fully impaired its investment in INOVA reducing its equity investment in INOVA and its share of INOVA’s accumulated other comprehensive loss, both to zero . At December 31, 2019 , the carrying value of this investment remains zero . The Company no longer records its equity in losses or earnings and has no obligation, implicit or explicit, to fund any expenses of INOVA Geophysical. Noncontrolling Interests The Company has non-redeemable noncontrolling interests. Non-redeemable noncontrolling interests in majority-owned affiliates are reported as a separate component of equity in “Noncontrolling interests” in the consolidated balance sheets. Net income attributable to noncontrolling interests is stated separately in the consolidated statements of operations. The activity for this noncontrolling interest relates to proprietary processing projects in Brazil. 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 Technology & Services segment; (ii) sale, license and repair of seismic data acquisition systems and other equipment; and (iii) sale or license of seismic command and control software systems and software solutions for operations management within its Operations Optimization segment. All E&P Technology & Services’ revenues and the services component of Optimization Software & Services’ revenues under 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 the Company expects 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. See further discussion below at Footnote 4 “ Revenue from Contracts with Customers .” Research, Development and Engineering Research, development and engineering costs primarily relate to activities that are designed to improve the quality of the subsurface image and overall acquisition economics of the Company’s customers. The costs associated with these activities are expensed as incurred. These costs include prototype material and field testing expenses, along with the related salaries and stock-based compensation, facility costs, consulting fees, tools and equipment usage and other miscellaneous expenses associated with these activities. Stock-Based Compensation The Company issues stock-based payment awards to employees and directors, including employee stock options, restricted stock units, restricted stocks and stock appreciation rights. The Company estimates the value of stock-based payment awards on the date of grant using an option pricing model such as Black-Scholes or Monte Carlo simulation. The determination of the fair value of stock-based payment awards is affected by the Company’s stock price as well as assumptions regarding a number of subjective variables. These variables include, but are not limited to, expected stock price volatility over the term of the awards, actual and projected stock-based instrument exercise behaviors, risk-free interest rate and expected dividends. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company recognizes stock-based compensation expense on the straight-line basis over the requisite service period of each award that are ultimately expected to vest. Income Taxes Income taxes are accounted for under the liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, including operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The Company records a valuation allowance when it is more likely than not that all or a portion of deferred tax assets will not be realized (see Footnote 7 “ Income Taxes ”). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-2, “Leases (Topic 842)” using the modified retrospective method. This ASU requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under the previous guidance. The Company used January 1, 2018, the beginning of the earliest comparative period presented in its consolidated financial statements, as the date of initial application. The Company elected the practical expedients upon transition which will retain the lease classification for leases and any unamortized initial direct costs that existed prior to the adoption of the standard. The adoption of the standard resulted in ROU assets of $59.5 million and operating lease liabilities of $70.6 million on the consolidated balance sheets as of January 1, 2018. The difference between the ROU assets and operating lease liabilities is due to the derecognition of $11.1 million in deferred rent recorded within other long-term liabilities. There was no impact on the consolidated statements of operations and cash flows. The adoption of the standard had no impact on the debt covenant compliance under existing agreements. The Company elected the practical expedient related to short-term leases, which are leases with a duration of twelve months or less, and as such, they have not been recorded in the consolidated balance sheets. See Footnote 14 “ Lease Obligations. ” for further discussion. Accounting Pronouncements Not Yet Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, “ Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments.” The guidance will replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The guidance is effective for public companies for interim and annual periods beginning after December 15, 2019, with early adoption permitted for interim and annual periods beginning after December 15, 2018. The Company does not currently expect the adoption of this standard to have a material impact on the consolidated financial statements. On January 26, 2017, the FASB issued ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This guidance simplifies the accounting for goodwill impairment by eliminating step 2 from the goodwill impairment test. Entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. The ASU is effective for annual and interim impairment tests performed in periods beginning after December 15, 2019. The ASU is not expected to have a material impact on the consolidated financial statements as it relates to how the Company tests goodwill for impairment. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information During the first quarter of 2019, the Company consolidated its operating segments from three into two , eliminating the separate presentation of its Ocean Bottom Integrated Technologies segment. This consolidation aligns with the Company’s asset light business model and evolved strategy to commercialize components of the Company’s next generation ocean bottom nodal system, 4Sea, instead of operating a crew. The Company is offering 4Sea components more broadly to the growing number of OBS service providers under recurring revenue commercial strategies. The Company may also license the right to manufacture and use the 4Sea nodal technology to a service provider on a value-based pricing model, such as a royalty stream. Revenues from 4Sea are being recognized through the relevant segment, either E&P Technology & Services or Operations Optimization. Accordingly, as of first quarter 2019, the Company evaluates and reviews its results based on two reporting segments: E&P Technology & Services and Operations Optimization. The segments represent components of the Company for which separate financial information is available that is utilized on a regular basis by the Chief Operating Decision Maker in determining how to allocate resources and evaluate performance. The Company measures segment operating results based on income (loss) from operations. Previously reported segment information has been retrospectively revised throughout the consolidated financial statements, as applicable, for all periods presented to reflect the changes in the Company’s reporting segments. These changes did not have an impact on the Company’s consolidated financial statements. These changes did not affect the Company’s reporting units used for allocating and testing goodwill for impairment. A summary of segment information follows (in thousands): Years Ended December 31, 2019 2018 2017 Net revenues: E&P Technology & Services: New Venture (a) $ 31,188 $ 69,685 $ 100,824 Data Library 71,847 47,095 40,016 Total multi-client revenues (b) 103,035 116,780 140,840 Imaging Services 22,543 19,740 16,409 Total $ 125,578 $ 136,520 $ 157,249 Operations Optimization: Optimization Software & Services $ 23,140 $ 21,129 $ 16,695 Devices 25,961 22,396 23,610 Total $ 49,101 $ 43,525 $ 40,305 Total net revenues $ 174,679 $ 180,045 $ 197,554 Gross profit (loss): E&P Technology & Services $ 35,699 $ 43,369 $ 65,196 Operations Optimization 24,323 22,293 20,076 Segment gross profit 60,022 65,662 85,272 Other — (6,042 ) (c) (9,633 ) (c) Total gross profit $ 60,022 $ 59,620 $ 75,639 Gross margin: E&P Technology & Services 28 % 32 % 41 % Operations Optimization 50 % 51 % 50 % Segment gross margin 34 % 36 % 43 % Other — % (3 )% (5 )% Total 34 % 33 % 38 % Income (loss) from operations: E&P Technology & Services $ 8,833 $ 21,758 $ 42,505 Operations Optimization 8,189 7,295 8,022 Support and other (41,481 ) (d) (83,325 ) (d) (59,226 ) (d) Loss from operations (24,459 ) (54,272 ) (8,699 ) Interest expense, net (13,074 ) (12,972 ) (16,709 ) Other expense, net (1,617 ) (436 ) (3,945 ) Loss before income taxes $ (39,150 ) $ (67,680 ) $ (29,353 ) (a) Includes net revenues generated by the E&P Advisors group. (b) Excluding item (a) above, this represents net revenues generated by the Ventures group. (c) Relates to gross loss primarily related to depreciation expense of previously reported Ocean Bottom Integrated Technologies segment. (d) Includes loss from operations of previously reported Ocean Bottom Integrated Technologies segment of $1.7 million , $11.1 million and $16.3 million for 2019, 2018 and 2017, respectively, which includes item (b) above, operating expenses of $1.7 million , $5.1 million and $6.7 million for 2019, 2018 and 2017 and includes a charge of $36.6 million to write-down the cable-based ocean bottom acquisition technologies associated with the previously reported Ocean Bottom Integrated Technologies segment. Remaining balance primarily relates to operating expenses. Intersegment sales are insignificant for all periods presented. Years Ended December 31, 2019 2018 2017 Depreciation and amortization expense (including multi-client data library) : E&P Technology & Services $ 41,813 $ 51,673 $ 53,663 Operations Optimization 940 995 1,349 Support and other (a) 445 5,083 8,682 Total $ 43,198 $ 57,751 $ 63,694 (a) Includes depreciation and amortization of previously reported Ocean Bottom Integrated Technologies segment of zero , $4.2 million and $7.0 million for 2019 , 2018 and 2017 , respectively. Depreciation and amortization expense recorded within cost of services and operating expenses in the consolidated statements of operations is allocated to segments based upon use of the underlying assets. December 31, 2019 2018 Total assets: E&P Technology & Services $ 133,787 $ 191,207 Operations Optimization 56,927 54,933 Support and other (a) 42,480 46,412 Total $ 233,194 $ 292,552 (a) Support and other assets include all assets specifically related to support personnel and operations and the majority of cash and cash equivalents. A summary of total assets by geographic area follows (in thousands): December 31, 2019 2018 North America $ 104,808 $ 127,084 Latin America 34,633 69,673 Middle East 48,932 52,037 Europe 37,946 38,463 Other 6,875 5,295 Total $ 233,194 $ 292,552 A summary of property, plant and equipment and multi-client data library, net of accumulated depreciation, amortization and impairment, by geographic area follows (in thousands): December 31, 2019 2018 North America $ 56,566 $ 67,283 Latin America 14,826 18,067 Europe 2,095 1,140 Middle East 73 36 Other 12 59 Total $ 73,572 $ 86,585 A summary of net revenues by geographic area follows (in thousands): Years Ended December 31, 2019 2018 2017 Latin America $ 60,684 $ 68,871 $ 68,241 North America 46,684 44,474 48,120 Europe 30,722 31,077 44,930 Asia Pacific 13,242 17,817 18,896 Africa 10,083 10,837 6,837 Middle East 7,347 5,526 2,308 Other 5,917 1,443 8,222 Total $ 174,679 $ 180,045 $ 197,554 Net revenues are attributed to geographic areas on the basis of the ultimate destination of the equipment or service, if known, or the geographic area imaging services are provided. If the ultimate destination of such equipment is not known, net revenues are attributed to the geographic area of initial shipment. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Multi-client and Proprietary Surveys, Imaging Services 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 acquisition 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 with 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; and (iv) the customer has significant rewards of ownership; or (v) the customer has accepted the asset. Software - Licenses for the Company’s navigation, survey design, quality control and offshore operations optimization 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. The Company does not have any contractual future performance obligations with an original term of over one year. Revenue by Segment and Geographic Area See Footnote 3 “Segment Information” of Footnotes to Consolidated Financial Statements for revenue by segment and revenue by geographic area for 2019 , 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): December 31, 2019 2018 New Venture $ 5,222 $ 38,430 Imaging Services 6,539 5,075 Devices 54 527 Total $ 11,815 $ 44,032 The changes in unbilled receivables were as follows (in thousands): Unbilled receivables at December 31, 2018 $ 44,032 Recognition of unbilled receivables 166,878 Revenues billed to customers (199,095 ) Unbilled receivables at December 31, 2019 $ 11,815 Deferred Revenue Billing practices are governed by the terms of each contract based upon achievement of milestones or pre-agreed schedules. Billing does 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): December 31, 2019 2018 New Venture $ 1,956 $ 5,797 Imaging Services 1,501 307 Devices 452 626 Optimization Software & Services 642 980 Total $ 4,551 $ 7,710 The changes in deferred revenues were as follows (in thousands): Deferred revenue at December 31, 2018 $ 7,710 Cash collected in excess of revenue recognized 4,642 Recognition of deferred revenue (a) (7,801 ) Deferred revenue at December 31, 2019 $ 4,551 (a) The majority of deferred revenue recognized relates to Company’s Ventures group. The Company expects to recognize a majority of deferred revenue within the next twelve months. Credit Risks In 2019 , the Company had one customer with sales that exceeded 10% of the consolidated net revenues. Revenues related to this customer are included within the E&P Technology & Services segment. In 2018 , the Company had two customers with sales that each exceeded 10% of the consolidated net revenues. In 2017 , the Company had one customer with sales that exceeded 10% of the consolidated net revenues. Revenues related to this customer are included within the E&P Technology & Services segment. At December 31, 2019 , the Company had two customers with balances that, combined, accounted for 29% of the Company’s total combined accounts receivable and unbilled receivable balances. At December 31, 2018 , the Company had one customer with a balance that accounted for 23% of the Company’s total combined accounts receivable and unbilled receivable balances. Concentration of Foreign Sales Risk The majority of the Company’s foreign sales are denominated in U.S. dollars. For 2019 , 2018 and 2017 , international sales comprised 73% , 75% and 76% , respectively, of total net revenues. The volatility in oil prices have continued to impact the global market throughout 2019. To the extent that world events or economic conditions negatively affect the Company’s future sales to customers in many regions of the world, as well as the collectability of the Company’s existing receivables, the Company’s future results of operations, liquidity and financial condition would be adversely affected. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt The following is a summary of long-term debt and lease obligation (in thousands): December 31, 2019 2018 Senior secured second-priority lien notes (maturing December 15, 2021) $ 120,569 $ 120,569 Revolving credit facility (maturing August 16, 2023) (a) — — Equipment finance leases (see Footnote 14) 1,869 2,938 Other debt 972 1,159 Costs associated with issuances of debt (1,951 ) (2,925 ) Total 121,459 121,741 Current maturities of long-term debt (2,107 ) (2,228 ) Long-term debt, net of current maturities $ 119,352 $ 119,513 (a) The maturity of the revolving credit facility will accelerate to October 31, 2021 if the Company is unable to repay or extend the maturity of the Second Lien Notes. Revolving Credit Facility On August 16, 2018, ION and its material U.S. subsidiaries - GX Technology Corporation, ION Exploration Products (U.S.A), Inc. and I/O Marine Systems Inc. (the “Material U.S. Subsidiaries”) - along with GX Geoscience Corporation, S. de R.L. de C.V., a limited liability company (Sociedad de Responsibilidad Limitada de Capital Variable) organized under the laws of Mexico, and a subsidiary of the Company (the “Mexican Subsidiary”), (the Material U.S. Subsidiaries and the Mexican Subsidiary are collectively, the “Subsidiary Borrowers”, together with ION Geophysical Corporation are the “Borrowers”) - the financial institutions party thereto, as lenders, and PNC Bank, National Association (“PNC”), as agent for the lenders, entered into that certain Third Amendment and Joinder to Revolving Credit and Security Agreement (the “Third Amendment”), amending the Revolving Credit and Security Agreement, dated as of August 22, 2014 (as previously amended by the First Amendment to Revolving Credit and Security Agreement, dated as of August 4, 2015 and the Second Amendment to Revolving Credit and Security Agreement, dated as of April 28, 2016, the “Credit Agreement”). The Credit Agreement, as amended by the First Amendment, the Second Amendment and the Third 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 Third Amendment amended the Credit Agreement to, among other things: • extend the maturity date of the Credit Facility by approximately four years (from August 22, 2019 to August 16, 2023), subject to the retirement or extension of the maturity date of the Second Lien Notes, as defined below, which mature on December 15, 2021; • increase the maximum revolver amount by $10.0 million (from $40.0 million to $50.0 million ); • increase the borrowing base percentage of the net orderly liquidation value as it relates to the multi-client data library (not to exceed $28.5 million , up from the previous maximum of $15.0 million for the multi-client data library component); • include the eligible billed receivables of the Mexican Subsidiary up to a maximum of $5.0 million in the borrowing base calculation and joins the Mexican Subsidiary as a borrower thereunder (with a maximum exposure of $5.0 million ) and require the equity and assets of the Mexican Subsidiary to be pledged to secure obligations under the facility; • modify the interest rate such that the maximum interest rate remains consistent with the fixed interest rate prior to the Third Amendment (that is, 3.00% per annum for domestic rate loans and 4.00% per annum for LIBOR rate loans), but lowers the range down to a minimum interest rate of 2.00% for domestic rate loans and 3.00% for LIBOR rate loans based on a leverage ratio for the preceding four-quarter period; • decrease the minimum excess borrowing availability threshold which (if the Borrowers have minimum excess borrowing availability below any such threshold) triggers the agent’s right to exercise dominion over cash and deposit accounts; and • modify the trigger required to test for compliance with the fixed charge coverage ratio, which is further described below. The maximum amount under the Credit Facility is the lesser of $50.0 million or a monthly borrowing base. 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 data library. At December 31, 2019 , the borrowing base under the Credit Facility was $39.3 million and there was no outstanding indebtedness under the Credit Facility. 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. However, the first-priority security interest in the other assets of the Mexican Subsidiary is capped to a maximum exposure of $5.0 million . The Credit Facility contains covenants that, among other things, limit or prohibit the Borrowers, subject to certain exceptions and qualifications, from incurring additional indebtedness in excess of permitted indebtedness (including finance 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’s earnings before interest, taxes, depreciation and amortization (“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) by a two-step process based on (i) a minimum excess borrowing availability threshold (excess borrowing availability less than $6.25 million for five consecutive business days or $5.0 million on any given business day, and (ii) the Borrowers’ unencumbered cash maintained in a PNC deposit account is less than the Borrowers’ then outstanding obligations. At December 31, 2019 , the Company was in compliance with all of the covenants under the Credit Facility. The Credit Facility contains customary event of default provisions (including a “change of control” event affecting ION), the occurrence of which could lead to an acceleration of the Company’s obligations under the Credit Facility. Senior Secured Notes ION Geophysical Corporation’s 9.125% Senior Secured Second Priority Notes due December 2021 (the “Second Lien Notes”) are senior secured second-priority obligations guaranteed by the Material U.S Subsidiaries and the Mexican Subsidiary (each as defined above and herein below, with the reference to the Second Lien Notes, the “Guarantors”). Interest on the Second Lien Notes 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 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. At December 31, 2019 , the Company was in compliance with all of the covenants under 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 105.50% 2020 103.50% 2021 100.00% A summary of future principal obligations under long-term debt follows (in thousands): Years Ending December 31, Second Lien Notes Other Financing Total 2020 $ — $ 972 $ 972 2021 120,569 — 120,569 Total $ 120,569 $ 972 $ 121,541 |
Net Loss per Common Share
Net Loss per Common Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Net Loss per Common Share | Net Loss per Common 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 income per common share is determined based on the assumption that dilutive restricted stock and restricted stock unit awards have vested and outstanding dilutive stock options have been exercised and the aggregate proceeds were used to reacquire common stock using the average price of such common stock for the period. The total number of shares issuable pursuant to outstanding stock options at December 31, 2019 , 2018 and 2017 were 689,209 , 785,890 and 890,341 , respectively, were excluded as their inclusion would have an anti-dilutive effect. The total number of shares issuable pursuant to restricted stock units awards outstanding at December 31, 2019 , 2018 and 2017 were 908,754 , 1,044,125 and 201,702 , respectively, were excluded as their inclusion would have an anti-dilutive effect. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The sources of income (loss) before income taxes are as follows (in thousands): Years Ended December 31, 2019 2018 2017 Domestic $ (85,278 ) $ (59,212 ) $ (12,487 ) Foreign 46,128 (8,468 ) (16,866 ) Total $ (39,150 ) $ (67,680 ) $ (29,353 ) Components of income taxes are as follows (in thousands): Years Ended December 31, 2019 2018 2017 Current: Federal $ — $ — $ (166 ) State and local 2 65 116 Foreign 10,002 8,905 5,494 Deferred: Federal — (346 ) (1,263 ) Foreign (1,940 ) (5,906 ) (4,157 ) Total income tax expense $ 8,064 $ 2,718 $ 24 A reconciliation of the expected income tax expense on income (loss) before income taxes using the statutory federal income tax rate of 21% for 2019 and 2018 and 35% for 2017 to income tax expense follows (in thousands): Years Ended December 31, 2019 2018 2017 Expected income tax expense at 21% for 2019 and 2018 and 35% for 2017 $ (8,222 ) $ (14,213 ) $ (10,274 ) Foreign tax rate differential (1,996 ) 74 (2,914 ) Foreign tax differences (327 ) 4,703 (5,610 ) Global intangible low tax income inclusion 7,310 3,443 — State and local taxes 2 65 116 Nondeductible expenses 865 1,604 4,308 Change in U.S. tax rate — — 77,410 Expired capital loss — — 1,114 Valuation allowance: Valuation allowance on expiring capital losses — — (1,114 ) Valuation allowance on operations 10,432 7,042 (63,012 ) Total income tax expense $ 8,064 $ 2,718 $ 24 As a result of the passage of the Tax Cut and Jobs Act (the “Act”) in December 2017, the Company’s U.S. deferred tax assets, liabilities, and associated valuation allowance at December 31, 2017 have been re-measured at the new U.S. federal tax rate of 21% The tax effects of the cumulative temporary differences resulting in the net deferred income tax asset (liability) are as follows (in thousands): December 31, 2019 2018 Deferred income tax assets: Accrued expenses $ 1,588 $ 1,126 Allowance accounts 6,161 6,415 Net operating loss carryforward 105,844 96,854 Equity method investment 35,292 35,292 Original issue discount 6,000 8,073 Interest limitation 10,132 5,845 Basis in identified intangibles 7,090 4,146 Tax credit carryforwards 5,070 5,345 Other 4,443 4,600 Total deferred income tax asset 181,620 167,696 Valuation allowance (170,937 ) (160,505 ) Net deferred income tax asset 10,683 7,191 Deferred income tax liabilities: Unbilled receivables (1,949 ) — Total deferred income tax asset, net $ 8,734 $ 7,191 At December 31, 2019 , the Company has a valuation allowance on substantially all net U.S. deferred tax assets. The valuation allowance was released in 2017 with respect to refundable U.S. alternative minimum tax (“AMT”) credits that will be realized as a result of provisions in the Act. A valuation allowance is established or maintained when it is “more likely than not” that all or a portion of deferred tax assets will not be realized. The Company will continue to record a valuation allowance for the substantial majority of its deferred tax assets until there is sufficient evidence to warrant reversal. At December 31, 2019 , the Company had U.S. net operating loss carryforwards of approximately $311.8 million , expiring in 2034 and beyond, and net operating loss carryforwards outside of the U.S. of approximately $159.7 million , the majority of which expires beyond 2025. At December 31, 2019 , the Company has approximately $0.4 million of unrecognized tax benefits and does not expect to recognize any significant increases in unrecognized tax benefits during the next twelve-month period. Interest and penalties, if any, related to unrecognized tax benefits are recorded in income tax expense. During 2019 , 2018 and 2017 , the aggregate changes in the Company’s total gross amount of unrecognized tax benefits are summarized as follows (in thousands): Years Ended December 31, 2019 2018 2017 Beginning balance $ 447 $ 447 $ 1,299 Increases in unrecognized tax benefits – current year positions — — 59 Decreases in unrecognized tax benefits – prior year position — — (911 ) Ending balance $ 447 $ 447 $ 447 The Company’s U.S. federal tax returns for 2016 and subsequent years remain subject to examination by tax authorities. The Company is no longer subject to Internal Revenue Service (“IRS”) examination for periods prior to 2015, although carryforward attributes that were generated prior to 2015 may still be adjusted upon examination by the IRS if they either have been or will be used in a future period. In the Company’s foreign tax jurisdictions, tax returns for 2012 and subsequent years generally remain open to examination. At December 31, 2019 , the Company considered the outside book-over-tax basis difference in its foreign subsidiaries to be in the amount of approximately $45.2 million . United States income taxes have not been provided on this basis difference as it is the Company’s intention to reinvest the undistributed earnings of its foreign subsidiaries to the extent they cannot be remitted to the United States without incurring incremental tax as provided in the Act. |
Legal Matters
Legal Matters | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters | Legal Matters WesternGeco In June 2009, WesternGeco L.L.C. (“WesternGeco”) filed a lawsuit against the Company in the United States District Court for the Southern District of Texas (the “District Court”). In the lawsuit, styled WesternGeco L.L.C. v. ION Geophysical Corporation , WesternGeco alleged that the Company had infringed four of their patents concerning marine seismic surveys. Trial began in July 2012, and the jury returned a verdict in August 2012. The jury found that the Company infringed on six “claims” contained in four of WesternGeco’s patents by supplying the Company’s DigiFIN® lateral streamer control units from the United States. (In patent law, a “claim” is a technical legal term; an infringer infringes on one or more “claims” of a given patent.) In May 2014, the District Court entered a Final Judgment against the Company in the amount of $123.8 million . The Final Judgment also enjoined the Company from supplying DigiFINs or any parts unique to DigiFINs in or from the United States. The Company has conducted its business in compliance with the District Court’s orders, and has reorganized its operations such that it no longer supplies DigiFINs or any parts unique to DigiFINs in or from the United States. As of 2018, the Company has paid WesternGeco the $25.8 million of the Final Judgment (the portion of the judgment representing reasonable royalty damages and enhanced damages, plus interest). However, as further described below, the balance of the judgment against the Company ( $98.0 million , representing lost profits from surveys performed by the Company’s customers outside of the United State, plus interest) has been vacated, and a new trial ordered, to determine what lost profit damages, if any, WesternGeco is entitled to. The Final Judgment was vacated after it was appealed to the United States Court of Appeals for the Federal Circuit in Washington, D.C. (the “Court of Appeals”), then to the Supreme Court of the United States, which remanded the case, again, to the Court of Appeals. On January 11, 2019, the Court of Appeals refused to disturb the award of reasonable royalties to WesternGeco (which the Company paid in 2016), but did not reinstate the lost profits award; rather, the Court of Appeals remanded the case back to the District Court to determine whether to hold a new trial as to lost profits. On August 30, 2019, the District Court refused WesternGeco’s request to reinstate the lost profits awards against the Company, and instead ordered a new trial to determine what lost profits, if any, WesternGeco is entitled to from surveys performed by the Company’s customers outside of the United States. The District Court’s basis for granting the new trial as to lost profits was that, subsequent to the jury verdict that awarded lost profits, the Patent Trial and Appeal Board (“PTAB”) of the Patent and Trademark Office, in an administrative proceeding, invalidated four of the six patent claims patent claims that formed the basis for the lost profits judgment against the Company (that is, the PTAB held that those four patent claims should never have been granted), and the Court of Appeals and the Supreme Court both subsequently refused to overturn that finding. A trial date for the new trial has not yet been set. The Company may not ultimately prevail in the litigation and it could be required to pay lost profits if and when a new judgment issues in the new trial. The Company’s assessment that it does not have a loss contingency may change in the future due to developments at the District Court, and other events, such as changes in applicable law, and such reassessment could lead to the determination that a significant loss contingency is probable, which could have a material adverse effect on the Company’s business, financial condition and results of operations. The Company’s assessments disclosed in this Annual Report on Form 10-K or elsewhere are based on currently available information and involve elements of judgment and significant uncertainties. Other In July 2018, the Company prevailed in an arbitration that it initiated against the Indian Directorate General of Hydrocarbons (“DGH”) relating to its ability to continue to license data under the IndiaSPAN program. The DGH filed a lawsuit in court in India to vacate the arbitration award; in connection with that lawsuit, the Company was ordered to escrow approximately $4.5 million in sales proceeds that the Company had received in respect of sales from the IndiaSPAN program, pending the outcome of the DGH’s challenge to the arbitration award. We challenged the escrow order, but on December 9, 2019, the Supreme Court of India ordered the Company to comply with it which will require the Company to deposit approximately $4.5 million in escrow in late February 2020. The Company prevailed on the merits in the arbitration and expect to have that award upheld in Indian court, which would result in release of its portion of the escrowed money. The Company has been named in various other lawsuits or threatened actions that are incidental to its ordinary business. Litigation is inherently unpredictable. Any claims against the Company, whether meritorious or not, could be time-consuming, cause the Company to incur costs and expenses, require significant amounts of management time and result in the diversion of significant operational resources. The results of these lawsuits and actions cannot be predicted with certainty. Management currently believes that the ultimate resolution of these matters will not have a material adverse impact on the financial condition, results of operations or liquidity of the Company. |
Other Expense
Other Expense | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Expense | Other Expense A summary of other expense follows (in thousands): Years Ended December 31, 2019 2018 2017 Accrual for loss contingency related to legal proceedings (see Footnote 8) $ — $ — $ (5,000 ) Recovery of INOVA bad debts — — 844 Other income (expense) (1,617 ) (436 ) 211 Total other expense, net $ (1,617 ) $ (436 ) $ (3,945 ) |
Details of Selected Balance She
Details of Selected Balance Sheet Accounts | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Details of Selected Balance Sheet Accounts | Details of Selected Balance Sheet Accounts Accounts Receivable A summary of accounts receivable follows (in thousands): December 31, 2019 2018 Accounts receivable, principally trade $ 29,548 $ 26,558 Less: allowance for doubtful accounts — (430 ) Accounts receivable, net $ 29,548 $ 26,128 Inventories A summary of inventories follows (in thousands): December 31, 2019 2018 Raw materials and purchased subassemblies $ 18,509 $ 20,011 Work-in-process 2,079 1,032 Finished goods 4,932 8,111 Less: reserve for excess and obsolete inventories (13,333 ) (15,024 ) Inventories, net $ 12,187 $ 14,130 Total excess and obsolete inventory expense for 2019 , 2018 and 2017 was $0.5 million , $0.7 million and $0.4 million , respectively. Property, Plant and Equipment A summary of property, plant and equipment follows (in thousands): December 31, 2019 2018 Buildings $ 15,486 $ 15,707 Machinery and equipment 133,048 132,135 Seismic rental equipment 1,669 1,423 Furniture and fixtures 3,347 3,859 Other 31,142 30,104 Total 184,692 183,228 Less: accumulated depreciation (134,951 ) (133,634 ) Less: impairment of long-lived assets (36,553 ) (36,553 ) Property, plant, equipment and seismic rental equipment, net $ 13,188 $ 13,041 Total depreciation expense, including amortization of assets recorded under equipment finance leases, for 2019 , 2018 and 2017 was $3.1 million , $7.6 million and $15.2 million , respectively. For 2019, the Company did not recognized any impairment. For 2018, the Company identified an indicator of impairment as it relates to its cable-based ocean bottom acquisition technologies and recognized an impairment charge of $36.6 million . Multi-Client Data Library At December 31, 2019 and 2018 , multi-client data library costs and accumulated amortization consisted of the following (in thousands): December 31, 2019 2018 Gross costs of multi-client data creation $ 1,007,762 $ 972,309 Less: accumulated amortization (816,401 ) (776,860 ) Less: impairments to multi-client data library (130,977 ) (121,905 ) Multi-client data library, net $ 60,384 $ 73,544 Total amortization expense for 2019 , 2018 and 2017 was $39.5 million , $49.0 million and $47.1 million , respectively. For 2019 , the Company wrote down its multi-client data library by $9.1 million for programs with capitalized costs exceeding the remaining sales forecast. Accrued Expenses A summary of accrued expenses follows (in thousands): December 31, 2019 2018 Compensation, including compensation-related taxes and commissions $ 15,218 $ 14,502 Accrued multi-client data library acquisition costs 4,219 3,746 Income tax payable 5,367 7,577 Other 5,524 5,586 Total $ 30,328 $ 31,411 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Changes in the carrying amount of goodwill for 2019 and 2018 are as follows (in thousands): E&P Technology & Services Optimization Software & Services Total Balance at January 1, 2018 $ 2,943 $ 21,146 $ 24,089 Impact of foreign currency translation adjustments — (1,174 ) (1,174 ) Balance at December 31, 2018 2,943 19,972 22,915 Impact of foreign currency translation adjustments — 670 670 Balance at December 31, 2019 $ 2,943 $ 20,642 $ 23,585 At December 31, 2019 and 2018 , zero provision for impairment of goodwill is required. |
Stockholder's Equity and Stock-
Stockholder's Equity and Stock-based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stockholders' Equity and Stock-based Compensation | Stockholders' Equity and Stock-based Compensation Public Equity Offering On February 21, 2018, the Company completed the public equity offering (the “Offering”) of its 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 pursuant to the Registration Statement on Form S-3 (No. 33-213769) filed with the Securities and Exchange Commission under the Securities Act of 1933 and declared effective on December 2, 2016. The net proceeds from this Offering were $47.0 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. The warrants have an exercise price of $33.60 per share, are immediately exercisable and were to expire on March 21, 2019. On February 4, 2019, the Company extended expiration of the warrants to March 21, 2020. Stock Option Plans The Company has adopted stock option plans for eligible employees, directors and consultants, which provide for the granting of options to purchase shares of common stock. The options under these plans generally vest in equal annual installments over a four -year period and have a term of ten years. These options are typically granted at pre-established quarterly grant dates with an exercise price per share equal to or greater than the current market price and, upon exercise, are issued from the Company’s unissued common shares. Transactions under the stock option plans are summarized as follows: Option Price per Share Outstanding Vested Available for Grant January 1, 2017 $3.10 - $245.85 847,635 348,353 599,720 Granted 13.15 156,000 — (156,000 ) Vested — — 149,537 — Exercised 3.10 (15,000 ) (15,000 ) — Cancelled/forfeited 3.10 - 245.85 (98,294 ) (47,612 ) 82,118 Restricted stock granted out of option plans — — — (59,500 ) Vested restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans — — — 22,065 December 31, 2017 3.10 - 245.85 890,341 435,278 488,403 Increase in shares authorized — — — 1,200,000 Granted 24.50 10,000 — (10,000 ) Vested — — 153,944 — Exercised 3.10 (70,086 ) (70,086 ) — Cancelled/forfeited 3.10 - 245.85 (44,365 ) (44,231 ) 2,568 Restricted stock granted out of option plans — — — (996,775 ) Vested restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans — — — 48,524 December 31, 2018 $3.10 - $151.35 785,890 474,905 732,720 Granted 6.79 - 8.43 20,000 — (20,000 ) Vested — — 167,991 — Exercised 3.10 (86,900 ) (86,900 ) — Cancelled/forfeited 13.15 - 107.85 (29,781 ) (22,281 ) 10,799 Restricted stock granted out of option plans — — — (157,155 ) Vested restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans — — — 170,254 December 31, 2019 $3.10 - $151.35 689,209 533,715 736,618 Stock options outstanding at December 31, 2019 are summarized as follows: Option Price per Share Outstanding Weighted Average Exercise Price of Outstanding Options Weighted Average Remaining Contract Life Vested Weighted Average Exercise Price of Vested Options $3.10 - $57.90 477,764 $ 17.36 8.1 years 261,364 $ 12.63 $61.05 - $71.85 74,432 $ 62.18 3.7 years 134,739 $ 60.20 $81.60 - $99.60 94,827 $ 89.87 2.6 years 95,426 $ 89.76 $106.05 - $151.35 42,186 $ 108.86 1.3 years 42,186 $ 108.86 Totals 689,209 $ 37.78 5.5 years 533,715 $ 46.04 Additional information related to the Company’s stock options follows: Number of Shares Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (000’s) Total outstanding at January 1, 2019 785,890 $ 35.33 5.4 years $ 572 Options granted 20,000 $ 7.61 $ 4.91 Options exercised (86,900 ) $ 3.10 Options cancelled (7,500 ) $ 13.15 Options forfeited (22,281 ) $ 67.88 Total outstanding at December 31, 2019 689,209 $ 37.78 5.5 years $ 1,071 Options exercisable and vested at December 31, 2019 533,715 $ 46.04 4.5 years $ 742 The total intrinsic value of options exercised during 2019 , 2018 and 2017 was $0.6 million , $1.4 million and less than $0.1 million , respectively. Cash received from option exercises under all share-based payment arrangements for 2019 , 2018 and 2017 was $0.1 million , $0.2 million , and less than $0.1 million , respectively. The weighted average grant date fair value for stock option awards granted during 2019 , 2018 and 2017 was $4.91 , $15.23 and $8.10 per share, respectively. The Company calculated the fair value of each stock option on the date of grant using the Black-Scholes option pricing model. The following assumptions were used for each respective period: Years Ended December 31, 2019 2018 2017 Risk-free interest rates 1.62% 2.78% 2.14% Expected lives (in years) 5.0 5.0 5.0 Expected dividend yield —% —% —% Expected volatility 84.64% 73.67% 74.41% The computation of expected volatility during 2019 , 2018 and 2017 was based on an equally weighted combination of historical volatility and market-based implied volatility. Historical volatility was calculated from historical data for a period of time approximately equal to the expected term of the option award, starting from the date of grant. Market-based implied volatility was derived from traded options on the Company’s common stock having a term of six months. The Company’s computation of expected life in 2019 , 2018 and 2017 was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. The risk-free interest rate assumption is based upon the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. Restricted Stock and Restricted Stock Unit Plans On November 30, 2018, the Company’s stockholders approved certain amendments to the Company’s Second Amended and Restated 2013 Long-term Incentive Plan (the “2013 LTIP”) including increasing the total number of shares of common stock available for issuance under the 2013 LTIP by 1.2 million shares, for a total of approximately 1.7 million shares, eliminating the restriction on the number of shares in the 2013 LTIP that can be issued as full value awards and certain other technical updates and clarifications related to Section 162(m) of the internal revenue code, as amended. The Company has issued restricted stock and restricted stock units under the Company’s 2013 LTIP, as amended and other applicable plans. Restricted stock units are awards that obligate the Company to issue a specific number of shares of common stock in the future if continued service vesting requirements are met. Non-forfeitable ownership of the common stock will vest over a period as determined by the Company in its sole discretion, generally in equal annual installments over a three -year period. Shares of restricted stock awarded may not be sold, assigned, transferred, pledged or otherwise encumbered by the grantee during the vesting period. On December 1, 2018, the Company issued 900,002 restricted stocks to selected employees with a grant date fair value $7.19 , $6.51 and $5.89 for each of the tranches. The vesting of these restricted stocks is achieved through both a market condition and a service condition. The market condition is achieved, in part or in full, in the event that during the three -year period beginning on the date of grant the 20 -day trailing volume-weighted average price of a share of common stock reaches or exceeds (i) $17.50 for the first 1/3 of the awards, (ii) $22.50 for the second 1/3 of the awards, and (iii) $27.50 for the final 1/3 of the awards. The service condition restricts the ability of the holders to exercise awards until certain service milestones have been reached such that (i) no more than 1/3 of the awards may be exercised, if vested, on and after the first anniversary of the date of grant, (ii) no more than 2/3 of the awards may be exercised, if vested, on and after the second anniversary of the date of grant and (iii) all of the awards may be exercised, if vested, on and after the third anniversary of the date of grant. The status of the Company’s restricted stock and restricted stock unit awards for 2019 follows: Number of Shares/Units Total nonvested at January 1, 2019 1,044,125 Granted 157,155 Vested (225,860 ) Forfeited (66,666 ) Total nonvested at December 31, 2019 908,754 At December 31, 2019 , 2018 and 2017 , the intrinsic value of restricted stock and restricted stock unit awards was approximately $7.9 million , $5.4 million and $4.0 million , respectively. The weighted average grant date fair value for restricted stock and restricted stock unit awards granted during 2019 , 2018 and 2017 was $7.98 , $10.60 and $11.36 per share, respectively. The total fair value of shares vested during 2019 , 2018 and 2017 was $2.1 million , $3.8 million and $0.6 million , respectively. Stock Appreciation Rights Plan The Company has adopted a stock appreciation rights plan which provides for the award of stock appreciation rights (“SARs”) to directors and selected key employees and consultants. The awards under this plan are subject to the terms and conditions set forth in agreements between the Company and the holders. The exercise price per SAR is not to be less than one hundred percent of the fair market value of a share of common stock on the date of grant of the SAR. The term of each SAR shall not exceed ten years from the grant date. Upon exercise of a SAR, the holder shall receive a cash payment in an amount equal to the spread specified in the SAR agreement for which the SAR is being exercised. In no event will any shares of common stock be issued, transferred or otherwise distributed under the plan. On December 1, 2018, the Company issued 960,009 SARs awards to selected employees with an exercise price of $8.85 (“2018 SARs”). None of these 2018 SARs were awarded to non-employee directors. The 2018 SARs have the same service and market vesting conditions as the restricted stocks issued on December 1, 2018, as described above. The maximum value of each 2018 SARs is capped at $18.65 (the spread between the share price cap of $27.50 and the $8.85 per award price). At December 31, 2019 , there were 768,009 2018 SARs outstanding and unvested. The 2018 SARs are considered liability awards and as such, these amounts are incrementally accrued in the liability section of the consolidated balance sheets. The Company calculated the fair value of each 2018 SARs award using the following assumptions: Years Ended December 31, 2019 2018 Risk-free interest rates 1.9 % 3.0 % Expected lives (in years) 5.31 5.31 Expected dividend yield — % — % Expected volatility 79.0 % 82.9 % On March 1, 2016, the Company issued 1,210,000 SARs awards to 15 selected key employees with an exercise price of $3.10 (“2016 SARs”). None of these 2016 SARs were awarded to non-employee directors. The vesting of these 2016 SARs is achieved through both a market condition and a service condition. The market condition is achieved, in part or in full, in the event that during the four -year period beginning on the date of grant the 20 -day trailing volume-weighted average price of a share of common stock is (i) greater than 120% of the exercise price for the first 1/3 of the awards, (ii) greater than 125% of the exercise price for the second 1/3 of the awards and (iii) greater than 130% of the exercise price for the final 1/3 of the awards. The service condition restricts the ability of the holders to exercise awards until certain service milestones have been reached such that (i) no more than 1/3 of the awards may be exercised, if vested, on and after the first anniversary of the date of grant, (ii) no more than 2/3 of the awards may be exercised, if vested, on and after the second anniversary of the date of grant and (iii) all of the awards may be exercised, if vested, on and after the third anniversary of the date of grant. The maximum value of each 2016 SARs is capped at $19.40 (the spread between the share price cap of $22.50 and the $3.10 per award price). At December 31, 2019 , there were 186,670 2016 SARs outstanding and vested. On December 13, 2017, the Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) of the Company authorized and approved the acceleration of the vesting date to December 13, 2017 for the second tranche of the Company’s outstanding 2016 SARs. The second tranche of the 2016 SARs awards was originally scheduled to vest on March 1, 2018. The vesting of the second tranche of the 2016 SARs awards was accelerated to facilitate the exercise by the 2016 SARs participants, if they so choose, of a larger portion of the 2016 SARs awards prior to year-end, as such an exercise would minimize the potential cash flow impact of any such exercise in the first quarter of 2018, would mitigate the ongoing mark to market accounting requirements for cash-settled 2016 SARs, and would afford the 2016 SARs participants liquidity to invest in common stock of the Company to further align their interests with those of the Company’s stockholders. Participants exercised 663,330 SARs awards at a $9.95 gain per share. The 2016 SARs are considered liability awards and as such, these amounts are incrementally accrued in the liability section of the consolidated balance sheets. The Company calculated the fair value of each 2016 SARs award on the date of grant and remeasured at each reporting period. The 2016 SARs awards are measured at intrinsic value (i.e. the difference between the market price on the last day of the quarter and the strike price of the awards multiply by the number of awards vested) and marked to market each quarter until settled. Additional information related to the Company's SARs follows: Number of Shares Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (000’s) Total outstanding at January 1, 2017 1,416,133 $ 7.70 SARs exercised (713,330 ) $ 3.10 SARs cancelled (136,939 ) $ 7.70 Total outstanding at December 31, 2017 565,864 $ 13.49 SARs granted 960,009 $ 8.85 $ 8.85 SARs exercised (34,999 ) $ 3.10 SARs forfeited (9,333 ) $ 45.00 Total outstanding at December 31, 2018 1,481,541 $ 10.53 SARs exercised (158,334 ) $ 3.10 SARs cancelled (368,528 ) $ 20.99 Total outstanding at December 31, 2019 954,679 $ 7.73 7.8 years $ 1,042 SARs exercisable and vested at December 31, 2019 186,670 $ 3.10 6.2 years $ 1,042 Stock-based Compensation Expense The following tables summarizes stock-based compensation expense for 2019 , 2018 and 2017 as follows (in thousands): Years Ended December 31, 2019 2018 2017 Stock-based compensation expense $ 4,701 $ 3,337 $ 2,552 Tax benefit related thereto (972 ) (698 ) (862 ) Stock-based compensation expense, net of tax $ 3,729 $ 2,639 $ 1,690 Years Ended December 31, 2019 2018 2017 Stock appreciation rights expense $ 2,910 $ 822 $ 6,611 Tax benefit related thereto (611 ) (173 ) (2,314 ) Stock appreciation rights expense, net of tax $ 2,299 $ 649 $ 4,297 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information and Non-Cash Activity | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information and Non-Cash Activity | Supplemental Cash Flow Information and Non-Cash Activity Supplemental disclosure of cash flow information follows (in thousands): Years Ended December 31, 2019 2018 2017 Cash paid during the period for: Interest $ 12,381 $ 12,463 $ 14,181 Income taxes 11,065 3,260 7,030 Non-cash items from investing and financing activities: Purchase of computer equipment financed through capital leases — 3,297 — Investment in multi-client data library financed through trade payables and accruals 6,649 4,956 9,059 |
Lease Obligations
Lease Obligations | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease Obligations | Lease Obligations The Company determines if an arrangement is a lease at inception by considering whether (1) explicitly or implicitly identified assets have been deployed in the agreement and (2) the Company obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the agreement. Amounts related to operating leases are included in “Right-of-use assets”, “Current maturities of operating lease liabilities” and “Operating lease liabilities, net of current maturities” in the consolidated balance sheets. Amounts related to finance leases are included in “Property, plant and equipment, net”, “Current maturities of long-term debt”, and “Long-term debt, net of current maturities” in the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets are recognized at the commencement date and consist of the present value of remaining lease payments over the lease term, initial direct costs and prepaid lease payments less any lease incentives. Operating lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. The Company uses the implicit rate, when readily determinable or the incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments. The lease terms may include options to extend or terminate the lease which are recorded in the financial statements if it is reasonably certain that the Company will exercise such options. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Lease agreements with lease and non-lease components are accounted for separately. The Company does not recognize leases with terms of less than twelve months in the consolidated balance sheets and will recognize those lease payments in the consolidated statements of operations on a straight-line basis over the lease term. The Company leases offices, processing centers, warehouse spaces and, to a lesser extent, certain equipment. These leases have remaining terms of 1 year to 6 years , some of which have options to extend for up to 10 years and/or options to terminate within 1 year . The options to renew are not recognized as part of the Company’s ROU assets and operating lease liabilities as the Company is not reasonably certain that it will exercise these options. Total operating lease expense, including short-term lease expense was $11.6 million , $12.3 million and $12.3 million for 2019 , 2018 and 2017 , respectively. Future maturities of lease obligations follows (in thousands): Years Ending December 31, Operating Leases Finance Leases Total 2020 $ 12,708 $ 1,254 $ 13,962 2021 10,911 756 11,667 2022 10,718 — 10,718 2023 9,258 — 9,258 2024 5,109 — 5,109 Thereafter 4,022 — 4,022 Total lease payments $ 52,726 $ 2,010 $ 54,736 Less imputed interest (10,838 ) (141 ) (10,979 ) Total $ 41,888 $ 1,869 $ 43,757 The weighted average remaining lease term at December 31, 2019 and 2018 was 4.71 years and 5.26 years , respectively. The weighted average discount rate used to determine the operating lease liability at December 31, 2019 and 2018 was 6.47% and 6.25% , respectively. Supplemental cash flow information related to leases follows: Years Ended December 31, 2019 2018 Cash paid for amounts included in the measurement of lease liabilities: Operating leases $ 12,284 $ 12,914 Equipment finance leases 1,069 638 Equipment Finance Leases The Company has entered into capital leases that are due in installments for the purpose of financing the purchase of computer equipment through 2021. Interest accrues under these leases at rates from 4.3% to 8.7% per annum, and the leases are collateralized by liens on the computer equipment. The assets are amortized over the lesser of their related lease terms or their estimated productive lives and such charges are reflected within depreciation expense. |
Lease Obligations | Lease Obligations The Company determines if an arrangement is a lease at inception by considering whether (1) explicitly or implicitly identified assets have been deployed in the agreement and (2) the Company obtains substantially all of the economic benefits from the use of that underlying asset and directs how and for what purpose the asset is used during the term of the agreement. Amounts related to operating leases are included in “Right-of-use assets”, “Current maturities of operating lease liabilities” and “Operating lease liabilities, net of current maturities” in the consolidated balance sheets. Amounts related to finance leases are included in “Property, plant and equipment, net”, “Current maturities of long-term debt”, and “Long-term debt, net of current maturities” in the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and operating lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets are recognized at the commencement date and consist of the present value of remaining lease payments over the lease term, initial direct costs and prepaid lease payments less any lease incentives. Operating lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. The Company uses the implicit rate, when readily determinable or the incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments. The lease terms may include options to extend or terminate the lease which are recorded in the financial statements if it is reasonably certain that the Company will exercise such options. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Lease agreements with lease and non-lease components are accounted for separately. The Company does not recognize leases with terms of less than twelve months in the consolidated balance sheets and will recognize those lease payments in the consolidated statements of operations on a straight-line basis over the lease term. The Company leases offices, processing centers, warehouse spaces and, to a lesser extent, certain equipment. These leases have remaining terms of 1 year to 6 years , some of which have options to extend for up to 10 years and/or options to terminate within 1 year . The options to renew are not recognized as part of the Company’s ROU assets and operating lease liabilities as the Company is not reasonably certain that it will exercise these options. Total operating lease expense, including short-term lease expense was $11.6 million , $12.3 million and $12.3 million for 2019 , 2018 and 2017 , respectively. Future maturities of lease obligations follows (in thousands): Years Ending December 31, Operating Leases Finance Leases Total 2020 $ 12,708 $ 1,254 $ 13,962 2021 10,911 756 11,667 2022 10,718 — 10,718 2023 9,258 — 9,258 2024 5,109 — 5,109 Thereafter 4,022 — 4,022 Total lease payments $ 52,726 $ 2,010 $ 54,736 Less imputed interest (10,838 ) (141 ) (10,979 ) Total $ 41,888 $ 1,869 $ 43,757 The weighted average remaining lease term at December 31, 2019 and 2018 was 4.71 years and 5.26 years , respectively. The weighted average discount rate used to determine the operating lease liability at December 31, 2019 and 2018 was 6.47% and 6.25% , respectively. Supplemental cash flow information related to leases follows: Years Ended December 31, 2019 2018 Cash paid for amounts included in the measurement of lease liabilities: Operating leases $ 12,284 $ 12,914 Equipment finance leases 1,069 638 Equipment Finance Leases The Company has entered into capital leases that are due in installments for the purpose of financing the purchase of computer equipment through 2021. Interest accrues under these leases at rates from 4.3% to 8.7% per annum, and the leases are collateralized by liens on the computer equipment. The assets are amortized over the lesser of their related lease terms or their estimated productive lives and such charges are reflected within depreciation expense. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Authoritative guidance on fair value measurements defines fair value, establishes a framework for measuring fair value and stipulates the related disclosure requirements. The Company follows a three-level hierarchy, prioritizing and defining the types of inputs used to measure fair value. The three‑tiered hierarchy is summarized as follows: Level 1—Quoted prices in active markets for identical assets and liabilities. Level 2—Other significant observable inputs. Level 3—Significant unobservable inputs. Due to their highly liquid nature, the amount of the Company’s other financial instruments, including cash and cash equivalents, restricted cash, accounts and unbilled receivables, short term investments, accounts payable and accrued multi-client data library royalties, represent their approximate fair value. The carrying amounts of the Company’s long-term debt at December 31, 2019 and 2018 were $123.4 million and $124.7 million , respectively, compared to its fair values of $116.6 million and $120.7 million at December 31, 2019 and 2018 , respectively. The fair value of the Second Lien Notes was calculated using Level 1 inputs, including an active market price. Fair value measurements are applied with respect to non-financial assets and liabilities measured on a non-recurring basis, which would consist of measurements primarily of goodwill, multi-client data library and property, plant and equipment. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans The Company has a 401(k) retirement savings plan, which covers employees at least 18 years of age. Employees may voluntarily contribute up to 90% of their compensation , as defined, to the plan. The Company matched the employee contribution at a rate of 50% of the first 6% of compensation contributed to the plan subject to a maximum of 3% of eligible compensation. Company contributions to the plans were $0.9 million , $0.9 million and $0.8 million for 2019 , 2018 and 2017 , respectively. |
Selected Quarterly Information
Selected Quarterly Information (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Information (Unaudited) | Selected Quarterly Information — (Unaudited) A summary of selected quarterly information follows (in thousands, except per share amounts): Three Months Ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Service revenues $ 28,128 $ 30,407 $ 41,990 $ 30,755 Product revenues 8,828 11,368 11,249 11,954 Total net revenues 36,956 41,775 53,239 42,709 Gross profit 9,912 19,583 25,288 5,239 Income (loss) from operations (15,937 ) (2,553 ) 3,858 (9,827 ) Interest expense, net (3,112 ) (3,111 ) (3,155 ) (3,696 ) Other income (expense), net (792 ) 96 (242 ) (679 ) Income tax expense 1,407 2,719 3,790 148 Net income attributable to noncontrolling interests (112 ) (335 ) (394 ) (144 ) Net loss applicable to ION $ (21,360 ) $ (8,622 ) $ (3,723 ) $ (14,494 ) Net loss per share: Basic $ (1.52 ) $ (0.61 ) $ (0.26 ) $ (1.02 ) Diluted $ (1.52 ) $ (0.61 ) $ (0.26 ) $ (1.02 ) Three Months Ended March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 Service revenues $ 25,086 $ 15,752 $ 37,105 $ 61,095 Product revenues 8,422 8,991 10,095 13,499 Total net revenues 33,508 24,743 47,200 74,594 Gross profit (loss) 6,853 (1,517 ) 16,475 37,809 Loss from operations (12,640 ) (22,519 ) (2,452 ) (16,661 ) Interest expense, net (3,836 ) (2,911 ) (3,022 ) (3,203 ) Other income (expense), net (791 ) 84 91 180 Income tax expense (benefit) 1,072 154 2,079 (587 ) Net income attributable to noncontrolling interests (87 ) (366 ) (74 ) (246 ) Net loss applicable to ION $ (18,426 ) $ (25,866 ) $ (7,536 ) $ (19,343 ) Net loss per share: Basic $ (1.44 ) $ (1.86 ) $ (0.54 ) $ (1.38 ) Diluted $ (1.44 ) $ (1.86 ) $ (0.54 ) $ (1.38 ) The sum of the quarterly per share information may not tie to per share information in the Consolidated Statements of Operations due to rounding. |
Certain Relationships and Relat
Certain Relationships and Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Certain Relationships and Related Party Transactions | Certain Relationships and Related Party Transactions For 2019 , 2018 and 2017 , the Company recorded revenues from BGP of $2.2 million , $4.9 million and $4.4 million , respectively. Receivables due from BGP were $1.5 million and $1.6 million at December 31, 2019 and 2018 , respectively. BGP owned approximately 10.5% of the Company’s outstanding common stock at December 31, 2019 . Mr. James M. Lapeyre, Jr. is the Chairman of the Board on ION’s board of directors and a significant equity owner of Laitram, L.L.C. (Laitram), and he has served as president of Laitram and its predecessors since 1989. Laitram is a privately-owned, New Orleans-based manufacturer of food processing equipment and modular conveyor belts. Mr. Lapeyre and Laitram together owned approximately 9.1% of the Company’s outstanding common stock at December 31, 2019 . The Company acquired DigiCourse, Inc., the Company’s marine positioning products business, from Laitram in 1998. In connection with that acquisition, the Company entered into a Continued Services Agreement with Laitram under which Laitram agreed to provide the Company certain bookkeeping, software, manufacturing and maintenance services. Manufacturing services consist primarily of machining of parts for the Company’s marine positioning systems. The term of this agreement expired in September 2001, but the Company continues to operate under its terms. In addition, from time to time, when the Company has requested, the legal staff of Laitram has advised the Company on certain intellectual property matters with regard to the Company’s marine positioning systems. During 2019 , 2018 and 2017, the Company paid Laitram and its affiliates $0.7 million , $0.4 million and $0.2 million , respectively, which consisted of manufacturing services and reimbursement of costs. In addition, the Company is currently subleasing approximately 47,800 square feet of office and warehouse space to Laitram. In the opinion of the Company’s management, the terms of these services are fair and reasonable and as favorable to the Company as those that could have been obtained from unrelated third parties at the time of their performance. For 2019 , the Company recorded revenues from sales to INOVA of $0.5 million related to geophones sold by our Devices group. No revenues were recorded from sales to INOVA for 2018 and 2017 . |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information The Second Lien Notes were issued by ION Geophysical Corporation and are guaranteed by 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 consolid ating 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 7. “ Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II of this Form 10-K. December 31, 2019 Balance Sheet ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 8,426 $ 26 $ 24,613 $ — $ 33,065 Accounts receivable, net 8 19,493 10,047 — 29,548 Unbilled receivables — 7,314 4,501 — 11,815 Inventories, net — 6,902 5,285 — 12,187 Prepaid expenses and other current assets 3,292 1,513 1,207 — 6,012 Total current assets 11,726 35,248 45,653 — 92,627 Deferred income tax asset 402 8,417 (85 ) — 8,734 Property, plant and equipment, net 786 8,112 4,290 — 13,188 Multi-client data library, net — 54,479 5,905 — 60,384 Investment in subsidiaries 841,522 279,327 — (1,120,849 ) — Goodwill — — 23,585 — 23,585 Right-of-use assets 11,934 15,802 4,810 — 32,546 Intercompany receivables — 287,692 99,884 (387,576 ) — Other assets 1,171 905 54 — 2,130 Total assets $ 867,541 $ 689,982 $ 184,096 $ (1,508,425 ) $ 233,194 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ 972 $ 1,135 $ — $ — $ 2,107 Accounts payable 2,259 44,641 2,416 — 49,316 Accrued expenses 9,933 9,982 10,413 — 30,328 Accrued multi-client data library royalties — 18,616 215 — 18,831 Deferred revenue — 3,465 1,086 — 4,551 Current maturities of operating lease liabilities 4,429 5,469 1,157 — 11,055 Total current liabilities 17,593 83,308 15,287 — 116,188 Long-term debt, net of current maturities 118,618 734 — — 119,352 Operating lease liabilities, net of current maturities 11,208 15,346 4,279 — 30,833 Intercompany payables 755,524 — — (755,524 ) — Other long-term liabilities 1,418 35 — — 1,453 Total liabilities 904,361 99,423 19,566 (755,524 ) 267,826 Equity: Common stock 142 290,460 47,776 (338,236 ) 142 Additional paid-in capital 956,647 180,700 203,909 (384,609 ) 956,647 Accumulated earnings (deficit) (974,291 ) 396,793 18,837 (415,630 ) (974,291 ) Accumulated other comprehensive income (loss) (19,318 ) 4,281 (21,907 ) 17,626 (19,318 ) Due from ION Geophysical Corporation — (281,675 ) (86,273 ) 367,948 — Total stockholders’ equity (36,820 ) 590,559 162,342 (752,901 ) (36,820 ) Noncontrolling interests — — 2,188 — 2,188 Total equity (36,820 ) 590,559 164,530 (752,901 ) (34,632 ) Total liabilities and equity $ 867,541 $ 689,982 $ 184,096 $ (1,508,425 ) $ 233,194 December 31, 2018 Balance Sheet ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 13,782 $ 47 $ 19,722 $ — $ 33,551 Accounts receivable, net 8 17,349 8,771 — 26,128 Unbilled receivables — 12,697 31,335 — 44,032 Inventories, net — 8,721 5,409 — 14,130 Prepaid expenses and other current assets 3,891 1,325 2,566 — 7,782 Total current assets 17,681 40,139 67,803 — 125,623 Deferred income tax asset 805 6,261 125 — 7,191 Property, plant and equipment, net 489 8,922 3,630 — 13,041 Multi-client data library, net — 70,380 3,164 — 73,544 Investment in subsidiaries 836,002 247,359 — (1,083,361 ) — Goodwill — — 22,915 — 22,915 Right-of-use assets 18,513 21,350 7,940 — 47,803 Intercompany receivables — 305,623 60,255 (365,878 ) — Other assets 1,723 643 69 — 2,435 Total assets $ 875,213 $ 700,677 $ 165,901 $ (1,449,239 ) $ 292,552 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ 1,159 $ 1,069 $ — $ — $ 2,228 Accounts payable 2,407 29,602 2,904 — 34,913 Accrued expenses 7,011 10,036 14,364 — 31,411 Accrued multi-client data library royalties — 29,040 216 — 29,256 Deferred revenue — 6,515 1,195 — 7,710 Current maturities of operating lease liabilities 5,155 5,633 1,426 — 12,214 Total current liabilities 15,732 81,895 20,105 — 117,732 Long-term debt, net of current maturities 117,644 1,869 — — 119,513 Operating lease liabilities, net of current maturities 17,841 21,237 6,514 — 45,592 Intercompany payables 716,051 — — (716,051 ) — Other long-term liabilities 1,713 178 — 1,891 Total liabilities 868,981 105,179 26,619 (716,051 ) 284,728 Equity: Common stock 140 290,460 47,776 (338,236 ) 140 Additional paid-in capital 952,626 180,700 203,908 (384,608 ) 952,626 Accumulated earnings (deficit) (926,092 ) 390,691 (12,475 ) (378,216 ) (926,092 ) Accumulated other comprehensive income (loss) (20,442 ) 4,324 (22,023 ) 17,699 (20,442 ) Due from ION Geophysical Corporation — (270,677 ) (79,496 ) 350,173 — Total stockholders’ equity 6,232 595,498 137,690 (733,188 ) 6,232 Noncontrolling interests — — 1,592 — 1,592 Total equity 6,232 595,498 139,282 (733,188 ) 7,824 Total liabilities and equity $ 875,213 $ 700,677 $ 165,901 $ (1,449,239 ) $ 292,552 Year Ended December 31, 2019 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Total net revenues $ — $ 90,526 $ 84,153 $ — $ 174,679 Cost of goods sold — 86,531 28,126 — 114,657 Gross profit — 3,995 56,027 — 60,022 Total operating expenses 37,293 32,435 14,753 — 84,481 Income (loss) from operations (37,293 ) (28,440 ) 41,274 — (24,459 ) Interest expense, net (12,827 ) (638 ) 391 — (13,074 ) Intercompany interest, net 513 (1,423 ) 910 — — Equity in earnings (losses) of investments 1,464 35,950 — (37,414 ) — Other expense (12 ) (407 ) (1,198 ) — (1,617 ) Income (loss) before income taxes (48,155 ) 5,042 41,377 (37,414 ) (39,150 ) Income tax expense (benefit) 44 (1,060 ) 9,080 — 8,064 Net income (loss) (48,199 ) 6,102 32,297 (37,414 ) (47,214 ) Net income attributable to noncontrolling interests — — (985 ) — (985 ) Net income (loss) attributable to ION $ (48,199 ) $ 6,102 $ 31,312 $ (37,414 ) $ (48,199 ) Comprehensive net income (loss) $ (47,075 ) $ 6,059 $ 32,413 $ (37,487 ) $ (46,090 ) Comprehensive income attributable to noncontrolling interest — — (985 ) — (985 ) Comprehensive net income (loss) attributable to ION $ (47,075 ) $ 6,059 $ 31,428 $ (37,487 ) $ (47,075 ) Year Ended December 31, 2018 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Total net revenues $ — $ 96,649 $ 83,396 $ — $ 180,045 Cost of goods sold — 85,186 35,239 — 120,425 Gross profit — 11,463 48,157 — 59,620 Total operating expenses 32,888 29,235 51,769 — 113,892 Loss from operations (32,888 ) (17,772 ) (3,612 ) — (54,272 ) Interest expense, net (13,010 ) (136 ) 174 — (12,972 ) Intercompany interest, net 1,124 (12,137 ) 11,013 — — Equity in earnings (losses) of investments (26,446 ) 37,219 — (10,773 ) — Other income (expense) (196 ) 116 (356 ) — (436 ) Income (loss) before income taxes (71,416 ) 7,290 7,219 (10,773 ) (67,680 ) Income tax expense (benefit) (245 ) (6,711 ) 9,674 2,718 Net income (loss) (71,171 ) 14,001 (2,455 ) (10,773 ) (70,398 ) Net income attributable to noncontrolling interests — — (773 ) — (773 ) Net income (loss) attributable to ION $ (71,171 ) $ 14,001 $ (3,228 ) $ (10,773 ) $ (71,171 ) Comprehensive net income (loss) $ (72,734 ) $ 13,953 $ (4,797 ) $ (8,383 ) $ (71,961 ) Comprehensive income attributable to noncontrolling interest — — (773 ) — (773 ) Comprehensive net income (loss) attributable to ION $ (72,734 ) $ 13,953 $ (5,570 ) $ (8,383 ) $ (72,734 ) Year Ended December 31, 2017 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Total net revenues $ — $ 148,590 $ 48,964 $ — $ 197,554 Cost of goods sold — 90,754 31,161 — 121,915 Gross profit — 57,836 17,803 — 75,639 Total operating expenses 39,000 28,020 17,318 — 84,338 Income (loss) from operations (39,000 ) 29,816 485 — (8,699 ) Interest expense, net (16,729 ) (107 ) 127 — (16,709 ) Intercompany interest, net 1,084 (6,613 ) 5,529 — — Equity in earnings (losses) of investments 27,696 67,290 — (94,986 ) — Other income (expense) (4,610 ) (407 ) 1,072 — (3,945 ) Income (loss) before income taxes (31,559 ) 89,979 7,213 (94,986 ) (29,353 ) Income tax expense (benefit) (1,317 ) (1,427 ) 2,768 — 24 Net income (loss) (30,242 ) 91,406 4,445 (94,986 ) (29,377 ) Net income attributable to noncontrolling interests — — (865 ) — (865 ) Net income (loss) attributable to ION $ (30,242 ) $ 91,406 $ 3,580 $ (94,986 ) $ (30,242 ) Comprehensive net income (loss) $ (27,373 ) $ 91,358 $ 6,550 $ (97,043 ) $ (26,508 ) Comprehensive income attributable to noncontrolling interest — — (865 ) — (865 ) Comprehensive net income (loss) attributable to ION $ (27,373 ) $ 91,358 $ 5,685 $ (97,043 ) $ (27,373 ) Year Ended December 31, 2019 Statement of Cash Flows ION Geophysical Corporation The Guarantors All Other Subsidiaries Total Consolidated (In thousands) Cash flows from operating activities: Net cash provided by operating activities $ 10,342 $ 14,642 $ 9,166 $ 34,150 Cash flows from investing activities: Investment in multi-client data library — (18,765 ) (10,039 ) (28,804 ) Purchase of property, plant and equipment (375 ) (909 ) (1,127 ) (2,411 ) Net cash used in investing activities (375 ) (19,674 ) (11,166 ) (31,215 ) Cash flows from financing activities: Borrowings under revolving line of credit 40,000 — — 40,000 Repayments under revolving line of credit (40,000 ) — — (40,000 ) Payments on notes payable and long-term debt (1,069 ) (1,484 ) — (2,553 ) Intercompany lending (13,511 ) 6,495 7,016 — Proceeds from employee stock purchases and exercise of stock options 141 — — 141 Other financing activities (1,134 ) — — (1,134 ) Net cash provided by (used in) financing activities (15,573 ) 5,011 7,016 (3,546 ) Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash — — (125 ) (125 ) Net increase (decrease) in cash and cash equivalents (5,606 ) (21 ) 4,891 (736 ) Cash, cash equivalents and restricted cash at beginning of period 14,085 47 19,722 33,854 Cash, cash equivalents and restricted cash at end of period $ 8,479 $ 26 $ 24,613 $ 33,118 The following table is a reconciliation of cash, cash equivalents and restricted cash: December 31, 2019 ION Geophysical Corporation The Guarantors All Other Subsidiaries Total Consolidated (In thousands) Cash and cash equivalents $ 8,426 $ 26 $ 24,613 $ 33,065 Restricted cash included in prepaid expenses and other current assets 53 — — 53 Total cash, cash equivalents, and restricted cash shown in statements of cash flows $ 8,479 $ 26 $ 24,613 $ 33,118 Year Ended December 31, 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 $ (37,659 ) $ 39,407 $ 5,350 $ 7,098 Cash flows from investing activities: Investment in multi-client data library — (25,307 ) (2,969 ) (28,276 ) Purchase of property, plant and equipment (392 ) (959 ) (163 ) (1,514 ) Net cash used in investing activities (392 ) (26,266 ) (3,132 ) (29,790 ) Cash flows from financing activities: Repayments under revolving line of credit (10,000 ) — — (10,000 ) Payments on notes payable and long-term debt (30,169 ) (638 ) — (30,807 ) Cost associated with issuance of debt (1,247 ) — — (1,247 ) Intercompany lending 7,983 (12,522 ) 4,539 — Net proceeds from issuance of stocks 46,999 — — 46,999 Proceeds from employee stock purchases and exercise of stock options 214 — — 214 Other financing activities (1,351 ) — — (1,351 ) Net cash provided by (used in) financing activities 12,429 (13,160 ) 4,539 3,808 Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash — — 319 319 Net increase (decrease) in cash and cash equivalents (25,622 ) (19 ) 7,076 (18,565 ) Cash, cash equivalents and restricted cash at beginning of period 39,707 66 12,646 52,419 Cash, cash equivalents and restricted cash at end of period $ 14,085 $ 47 $ 19,722 $ 33,854 The following table is a reconciliation of cash, cash equivalents and restricted cash: December 31, 2018 ION Geophysical Corporation The Guarantors All Other Subsidiaries Total Consolidated (In thousands) Cash and cash equivalents $ 13,782 $ 47 $ 19,722 $ 33,551 Restricted cash included in other long-term assets 303 — — 303 Total cash, cash equivalents, and restricted cash shown in statements of cash flows $ 14,085 $ 47 $ 19,722 $ 33,854 Year Ended December 31, 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 $ (22,315 ) $ 73,154 $ (23,227 ) $ 27,612 Cash flows from investing activities: Investment in multi-client data library — (23,710 ) — (23,710 ) Purchase of property, plant and equipment (165 ) (817 ) (81 ) (1,063 ) Proceeds from sale of a cost-method investment — — — — Net cash used in investing activities (165 ) (24,527 ) (81 ) (24,773 ) Cash flows from financing activities: Payments on notes payable and long-term debt (1,591 ) (3,167 ) (58 ) (4,816 ) Cost associated with issuance of debt (53 ) — — (53 ) Intercompany lending 38,732 (45,609 ) 6,877 — Proceeds from employee stock purchases and exercise of stock options 1,619 — — 1,619 Other financing activities (343 ) — — (343 ) Net cash provided by (used in) financing activities 38,364 (48,776 ) 6,819 (3,593 ) Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash — — (260 ) (260 ) Net increase (decrease) in cash and cash equivalents 15,884 (149 ) (16,749 ) (1,014 ) Cash, cash equivalents and restricted cash at beginning of period 23,823 215 29,395 53,433 Cash, cash equivalents and restricted cash at end of period $ 39,707 $ 66 $ 12,646 $ 52,419 The following table is a reconciliation of cash, cash equivalents and restricted cash: December 31, 2017 ION Geophysical Corporation The Guarantors All Other Subsidiaries Total Consolidated (In thousands) Cash and cash equivalents $ 39,344 $ 66 $ 12,646 $ 52,056 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 statements of cash flows $ 39,707 $ 66 $ 12,646 $ 52,419 |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II ION GEOPHYSICAL CORPORATION AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS Year Ended December 31, 2017 Balance at Charged (Credited) to Deductions Balance at (In thousands) Allowances for doubtful accounts $ 1,443 $ 949 $ (1,820 ) $ 572 Allowances for doubtful notes receivable 4,000 — — 4,000 Valuation allowance on deferred tax assets 217,589 (64,126 ) — 153,463 Excess and obsolete inventory 15,049 398 (408 ) 15,039 Year Ended December 31, 2018 Balance at Charged (Credited) to Deductions Balance at (In thousands) Allowances for doubtful accounts $ 572 $ 222 $ (364 ) $ 430 Allowances for doubtful notes receivable 4,000 — — 4,000 Valuation allowance on deferred tax assets 153,463 7,042 — 160,505 Excess and obsolete inventory 15,039 665 (680 ) 15,024 Year Ended December 31, 2019 Balance at Beginning of Year Charged (Credited) to Costs and Expenses Deductions Balance at End of Year (In thousands) Allowances for doubtful accounts $ 430 $ — $ (430 ) $ — Allowances for doubtful notes receivable 4,000 — — 4,000 Valuation allowance on deferred tax assets 160,505 10,432 — 170,937 Excess and obsolete inventory 15,024 517 (2,208 ) 13,333 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
General Description and Principles of Consolidation | General Description and Principles of Consolidation ION Geophysical Corporation and its subsidiaries offer a full suite of services and products for seismic data acquisition and processing. The consolidated financial statements include the accounts of ION Geophysical Corporation and its majority-owned subsidiaries (collectively referred to as the “Company” or “ION”). Intercompany balances and transactions have been eliminated. Certain reclassifications were made to previously reported amounts in the consolidated financial statements and notes thereto to make them consistent with the current period presentation, including the change in reportable segments presentation which had no impact on the consolidated financial statements and the recognition of right-of-use (“ROU”) assets and operating lease liabilities on the consolidated balance sheets as a result of the adoption of the new lease standard. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates are made at discrete points in time based on relevant market information. These estimates may be subjective in nature and involve uncertainties and matters of judgment and, therefore, cannot be determined with precision. Areas involving significant estimates include, but are not limited to, collectability of accounts and unbilled receivables, inventory valuation reserves, sales forecasts related to multi-client data libraries, impairment of property, plant and equipment and goodwill and deferred taxes. Actual results could materially differ from those estimates. |
Foreign Currency Transactions | Foreign Currency Transactions Assets and liabilities of the Company’s subsidiaries operating outside the United States that have a functional currency other than the U.S. dollar have been translated to U.S. dollars using the exchange rate in effect at the balance sheet date. Results of foreign operations have been translated using the average exchange rate during the periods of operation. Resulting translation adjustments have been recorded as a component of accumulated other comprehensive loss . Foreign currency transaction gains and losses, as they occur, are included in “Other expense, net” on the consolidated statements of operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company places its temporary cash investments with high credit quality financial institutions. At times such investments may be in excess of the Federal Deposit Insurance Corporation insurance limit. |
Accounts and Unbilled Receivables | Accounts and Unbilled Receivables Accounts and unbilled receivables are recorded at cost, less the related allowance for doubtful accounts. The Company considers current information and events regarding the customers’ ability to repay their obligations, such as the length of time the receivable balance is outstanding, the customers’ credit worthiness and historical experience. Unbilled receivables relate to revenues recognized on multi-client surveys, 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. |
Accounts and Unbilled Receivables | Accounts and Unbilled Receivables Accounts and unbilled receivables are recorded at cost, less the related allowance for doubtful accounts. The Company considers current information and events regarding the customers’ ability to repay their obligations, such as the length of time the receivable balance is outstanding, the customers’ credit worthiness and historical experience. Unbilled receivables relate to revenues recognized on multi-client surveys, 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. |
Inventories | Inventories Inventories are stated at the lower of cost (primarily first-in, first-out method) or net realizable value. The Company provides reserves for estimated obsolescence or excess inventory equal to the difference between cost of inventory and its estimated net realizable value based upon assumptions about future demand for the Company’s products, market conditions and the risk of obsolescence driven by new product introductions. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation expense is provided straight-line over the following estimated useful lives: Years Machinery and equipment 3-7 Buildings 5-25 Seismic rental equipment 3-5 Leased equipment and other 3-10 Expenditures for major renewals and betterments, that increase the value or extend the economic useful life of the asset, are capitalized and depreciated. Repairs and maintenance are charged to expense as incurred. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the accounts and any gain or loss is reflected in “Other expense, net” in the consolidated statements of operations. |
Long-lived Asset Impairment | Long-lived Asset Impairment The Company evaluates the recoverability of long-lived assets, including property, plant and equipment, when indicators of impairment exist, relying on a number of factors including operating results, business plans, economic projections and anticipated future cash flows. Impairment is recognized whenever anticipated future undiscounted cash flows the assets are expected to generate are estimated to be less than its carrying value. The amount of the impairment recognized is the difference between the carrying value of the asset and its fair value. No indicators of impairment were noted for 2019 and as such no impairment charge was recognized. |
Multi-Client Data Library | Multi-Client Data Library The multi-client data library consists of seismic surveys that are offered for licensing to customers on a non-exclusive basis. The capitalized costs include costs paid to third parties for the acquisition of data and related activities associated with the data creation activity and direct internal processing costs, such as salaries, benefits, computer-related expenses and other costs incurred for seismic data project design and management. The Company’s method of amortizing the costs of an in-process multi-client data library (the period during which the seismic data is being acquired and/or processed, referred to as the “New Venture” phase) consists of determining the percentage of actual revenue recognized to the total estimated revenues (which includes both revenues estimated to be realized during the New Venture phase and estimated revenues from the licensing of the resulting “on-the-shelf” data survey) and multiplying that percentage by the total cost of the project (the sales forecast method). The Company considers a multi-client data survey to be complete when all work on the creation of the seismic data is finished and that data survey is available for licensing. Once a multi-client data survey is complete, the data survey is considered “on-the-shelf” and the Company’s method of amortization is then the greater of (i) the sales forecast method or (ii) the straight-line basis over a four-year period, applied on a cumulative basis at the individual survey level. Under this policy, the Company first records amortization using the sales forecast method. The cumulative amortization recorded for each survey is then compared with the cumulative straight-line amortization. The four-year period utilized in this cumulative comparison commences when the data survey is determined to be complete. If the cumulative straight-line amortization is higher for any specific survey, additional amortization expense is recorded, resulting in accumulated amortization being equal to the cumulative straight-line amortization for such survey. The Company has determined the amortization period of four years based upon its historical experience indicating that the majority of its revenues from multi-client surveys are derived during the acquisition and processing phases and during four years subsequent to survey completion. The Company estimates the ultimate revenue expected to be derived from a particular seismic data survey over its estimated useful economic life to determine the costs to amortize, if greater than straight-line amortization. That estimate is made by the Company at the project’s initiation. For a completed multi-client survey, the Company reviews the estimate quarterly. If during any such review, the Company determines that the ultimate revenue for a survey is expected to be materially more or less than the original estimate of ultimate revenue for such survey, the Company decreases or increases (as the case may be) the amortization rate attributable to the future revenue from such survey. In addition, in connection with such reviews, the Company evaluates the recoverability of the multi-client data library, and, if required, records an impairment charge with respect to such data. |
Goodwill | Goodwill Goodwill represents the excess of costs over the fair value of the net assets acquired in connection with a business combination. Goodwill is allocated to reporting units, which are either the operating segment or one reporting level below the operating segment, which includes E&P Technology & Services, Optimization Software & Services and Devices. Goodwill is not amortized, but rather tested and assessed for impairment at least annually on December 31, or more frequently, if facts and circumstances indicate that the carrying amount may exceed fair value. The Company begins with a qualitative assessment by evaluating relevant events or circumstances to determine whether it is more likely than not that the fair value of a reporting unit exceeds its carrying amount. If the Company is unable to conclude qualitatively that it is more likely than not that a reporting unit’s fair value exceeds its carrying value, then it will use a two-step quantitative assessment of the fair value of a reporting unit. To determine the fair value of these reporting units, the Company uses a discounted future returns valuation model, which includes a variety of level 3 inputs, as defined in Footnote 15 “Fair Value of Financial Instruments.” The key inputs for the model include the operational three -year forecast for the Company and the then-current market discount factor. Additionally, the Company compares the sum of the estimated fair values of the individual reporting units less consolidated debt to the Company’s overall market capitalization as reflected by the Company’s stock price. If the carrying value of a reporting unit that includes goodwill is determined to be more than the fair value of the reporting unit, there exists the possibility of goodwill impairment. An impairment loss is measured in two steps by first allocating the fair value of the reporting unit to net assets and liabilities including recorded and unrecorded intangible assets to determine the implied carrying value of goodwill. The next step is to measure the difference between the carrying value of goodwill and the implied carrying value of goodwill, and, if the implied carrying value of goodwill is less than the carrying value of goodwill, an impairment loss is recorded equal to the difference. |
Equity Method Investment | Equity Method Investment The Company determined that INOVA Geophysical is a variable interest entity because the Company’s voting rights with respect to INOVA Geophysical are not proportionate to its ownership interest and substantially all of INOVA Geophysical’s activities are conducted on behalf of the Company and BGP Inc. (“BGP”), a subsidiary of China National Petroleum Corporation and a related party to the Company. The Company is not the primary beneficiary of INOVA Geophysical because it does not have the power to direct the activities of INOVA Geophysical that most significantly impact its economic performance. Accordingly, the Company does not consolidate INOVA Geophysical, but instead accounts for INOVA Geophysical using the equity method of accounting. Under this method, an investment is carried at the acquisition cost, plus the Company’s equity in undistributed earnings or losses since acquisition, less distributions received. |
Noncontrolling Interests | Noncontrolling Interests The Company has non-redeemable noncontrolling interests. Non-redeemable noncontrolling interests in majority-owned affiliates are reported as a separate component of equity in “Noncontrolling interests” in the consolidated balance sheets. Net income attributable to noncontrolling interests is stated separately in the consolidated statements of operations. The activity for this noncontrolling interest relates to proprietary processing projects in Brazil. |
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 Technology & Services segment; (ii) sale, license and repair of seismic data acquisition systems and other equipment; and (iii) sale or license of seismic command and control software systems and software solutions for operations management within its Operations Optimization segment. All E&P Technology & Services’ revenues and the services component of Optimization Software & Services’ revenues under 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 the Company expects 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. |
Research, Development and Engineering | Research, Development and Engineering Research, development and engineering costs primarily relate to activities that are designed to improve the quality of the subsurface image and overall acquisition economics of the Company’s customers. The costs associated with these activities are expensed as incurred. These costs include prototype material and field testing expenses, along with the related salaries and stock-based compensation, facility costs, consulting fees, tools and equipment usage and other miscellaneous expenses associated with these activities. |
Stock-Based Compensation | Stock-Based Compensation The Company issues stock-based payment awards to employees and directors, including employee stock options, restricted stock units, restricted stocks and stock appreciation rights. The Company estimates the value of stock-based payment awards on the date of grant using an option pricing model such as Black-Scholes or Monte Carlo simulation. The determination of the fair value of stock-based payment awards is affected by the Company’s stock price as well as assumptions regarding a number of subjective variables. These variables include, but are not limited to, expected stock price volatility over the term of the awards, actual and projected stock-based instrument exercise behaviors, risk-free interest rate and expected dividends. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company recognizes stock-based compensation expense on the straight-line basis over the requisite service period of each award that are ultimately expected to vest. |
Income Taxes | Income Taxes Income taxes are accounted for under the liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, including operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The Company records a valuation allowance when it is more likely than not that all or a portion of deferred tax assets will not be realized (see Footnote 7 “ Income Taxes ”). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Pronouncements Recently Adopted On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-2, “Leases (Topic 842)” using the modified retrospective method. This ASU requires the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under the previous guidance. The Company used January 1, 2018, the beginning of the earliest comparative period presented in its consolidated financial statements, as the date of initial application. The Company elected the practical expedients upon transition which will retain the lease classification for leases and any unamortized initial direct costs that existed prior to the adoption of the standard. The adoption of the standard resulted in ROU assets of $59.5 million and operating lease liabilities of $70.6 million on the consolidated balance sheets as of January 1, 2018. The difference between the ROU assets and operating lease liabilities is due to the derecognition of $11.1 million in deferred rent recorded within other long-term liabilities. There was no impact on the consolidated statements of operations and cash flows. The adoption of the standard had no impact on the debt covenant compliance under existing agreements. The Company elected the practical expedient related to short-term leases, which are leases with a duration of twelve months or less, and as such, they have not been recorded in the consolidated balance sheets. See Footnote 14 “ Lease Obligations. ” for further discussion. Accounting Pronouncements Not Yet Adopted In June 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-13, “ Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments.” The guidance will replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The guidance is effective for public companies for interim and annual periods beginning after December 15, 2019, with early adoption permitted for interim and annual periods beginning after December 15, 2018. The Company does not currently expect the adoption of this standard to have a material impact on the consolidated financial statements. On January 26, 2017, the FASB issued ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This guidance simplifies the accounting for goodwill impairment by eliminating step 2 from the goodwill impairment test. Entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. The ASU is effective for annual and interim impairment tests performed in periods beginning after December 15, 2019. |
Summary of Significant Accoutin
Summary of Significant Accouting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Property, Plant, and Equipment | Property, plant and equipment are stated at cost. Depreciation expense is provided straight-line over the following estimated useful lives: Years Machinery and equipment 3-7 Buildings 5-25 Seismic rental equipment 3-5 Leased equipment and other 3-10 A summary of property, plant and equipment follows (in thousands): December 31, 2019 2018 Buildings $ 15,486 $ 15,707 Machinery and equipment 133,048 132,135 Seismic rental equipment 1,669 1,423 Furniture and fixtures 3,347 3,859 Other 31,142 30,104 Total 184,692 183,228 Less: accumulated depreciation (134,951 ) (133,634 ) Less: impairment of long-lived assets (36,553 ) (36,553 ) Property, plant, equipment and seismic rental equipment, net $ 13,188 $ 13,041 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | A summary of segment information follows (in thousands): Years Ended December 31, 2019 2018 2017 Net revenues: E&P Technology & Services: New Venture (a) $ 31,188 $ 69,685 $ 100,824 Data Library 71,847 47,095 40,016 Total multi-client revenues (b) 103,035 116,780 140,840 Imaging Services 22,543 19,740 16,409 Total $ 125,578 $ 136,520 $ 157,249 Operations Optimization: Optimization Software & Services $ 23,140 $ 21,129 $ 16,695 Devices 25,961 22,396 23,610 Total $ 49,101 $ 43,525 $ 40,305 Total net revenues $ 174,679 $ 180,045 $ 197,554 Gross profit (loss): E&P Technology & Services $ 35,699 $ 43,369 $ 65,196 Operations Optimization 24,323 22,293 20,076 Segment gross profit 60,022 65,662 85,272 Other — (6,042 ) (c) (9,633 ) (c) Total gross profit $ 60,022 $ 59,620 $ 75,639 Gross margin: E&P Technology & Services 28 % 32 % 41 % Operations Optimization 50 % 51 % 50 % Segment gross margin 34 % 36 % 43 % Other — % (3 )% (5 )% Total 34 % 33 % 38 % Income (loss) from operations: E&P Technology & Services $ 8,833 $ 21,758 $ 42,505 Operations Optimization 8,189 7,295 8,022 Support and other (41,481 ) (d) (83,325 ) (d) (59,226 ) (d) Loss from operations (24,459 ) (54,272 ) (8,699 ) Interest expense, net (13,074 ) (12,972 ) (16,709 ) Other expense, net (1,617 ) (436 ) (3,945 ) Loss before income taxes $ (39,150 ) $ (67,680 ) $ (29,353 ) (a) Includes net revenues generated by the E&P Advisors group. (b) Excluding item (a) above, this represents net revenues generated by the Ventures group. (c) Relates to gross loss primarily related to depreciation expense of previously reported Ocean Bottom Integrated Technologies segment. (d) Includes loss from operations of previously reported Ocean Bottom Integrated Technologies segment of $1.7 million , $11.1 million and $16.3 million for 2019, 2018 and 2017, respectively, which includes item (b) above, operating expenses of $1.7 million , $5.1 million and $6.7 million for 2019, 2018 and 2017 and includes a charge of $36.6 million to write-down the cable-based ocean bottom acquisition technologies associated with the previously reported Ocean Bottom Integrated Technologies segment. Remaining balance primarily relates to operating expenses. |
Schedule of Depreciation and Amortization by Segments | Years Ended December 31, 2019 2018 2017 Depreciation and amortization expense (including multi-client data library) : E&P Technology & Services $ 41,813 $ 51,673 $ 53,663 Operations Optimization 940 995 1,349 Support and other (a) 445 5,083 8,682 Total $ 43,198 $ 57,751 $ 63,694 (a) Includes depreciation and amortization of previously reported Ocean Bottom Integrated Technologies segment of zero , $4.2 million and $7.0 million for 2019 , 2018 and 2017 , respectively. |
Segment Reporting of Assets by Segments and Geographical Areas | December 31, 2019 2018 Total assets: E&P Technology & Services $ 133,787 $ 191,207 Operations Optimization 56,927 54,933 Support and other (a) 42,480 46,412 Total $ 233,194 $ 292,552 (a) Support and other assets include all assets specifically related to support personnel and operations and the majority of cash and cash equivalents. A summary of total assets by geographic area follows (in thousands): December 31, 2019 2018 North America $ 104,808 $ 127,084 Latin America 34,633 69,673 Middle East 48,932 52,037 Europe 37,946 38,463 Other 6,875 5,295 Total $ 233,194 $ 292,552 |
Schedule of Fixed Assets Less Accumulated Depreciation by Geographic Area | A summary of property, plant and equipment and multi-client data library, net of accumulated depreciation, amortization and impairment, by geographic area follows (in thousands): December 31, 2019 2018 North America $ 56,566 $ 67,283 Latin America 14,826 18,067 Europe 2,095 1,140 Middle East 73 36 Other 12 59 Total $ 73,572 $ 86,585 |
Summary of Net Revenues by Geographic Area | A summary of net revenues by geographic area follows (in thousands): Years Ended December 31, 2019 2018 2017 Latin America $ 60,684 $ 68,871 $ 68,241 North America 46,684 44,474 48,120 Europe 30,722 31,077 44,930 Asia Pacific 13,242 17,817 18,896 Africa 10,083 10,837 6,837 Middle East 7,347 5,526 2,308 Other 5,917 1,443 8,222 Total $ 174,679 $ 180,045 $ 197,554 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability | The following table is a summary of unbilled receivables (in thousands): December 31, 2019 2018 New Venture $ 5,222 $ 38,430 Imaging Services 6,539 5,075 Devices 54 527 Total $ 11,815 $ 44,032 The changes in unbilled receivables were as follows (in thousands): Unbilled receivables at December 31, 2018 $ 44,032 Recognition of unbilled receivables 166,878 Revenues billed to customers (199,095 ) Unbilled receivables at December 31, 2019 $ 11,815 The following table is a summary of deferred revenues (in thousands): December 31, 2019 2018 New Venture $ 1,956 $ 5,797 Imaging Services 1,501 307 Devices 452 626 Optimization Software & Services 642 980 Total $ 4,551 $ 7,710 The changes in deferred revenues were as follows (in thousands): Deferred revenue at December 31, 2018 $ 7,710 Cash collected in excess of revenue recognized 4,642 Recognition of deferred revenue (a) (7,801 ) Deferred revenue at December 31, 2019 $ 4,551 (a) The majority of deferred revenue recognized relates to Company’s Ventures group. |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Obligations | The following is a summary of long-term debt and lease obligation (in thousands): December 31, 2019 2018 Senior secured second-priority lien notes (maturing December 15, 2021) $ 120,569 $ 120,569 Revolving credit facility (maturing August 16, 2023) (a) — — Equipment finance leases (see Footnote 14) 1,869 2,938 Other debt 972 1,159 Costs associated with issuances of debt (1,951 ) (2,925 ) Total 121,459 121,741 Current maturities of long-term debt (2,107 ) (2,228 ) Long-term debt, net of current maturities $ 119,352 $ 119,513 (a) The maturity of the revolving credit facility will accelerate to October 31, 2021 if the Company is unable to repay or extend the maturity of the Second Lien Notes. |
Debt Instrument Redemption Percentages | 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 105.50% 2020 103.50% 2021 100.00% |
Equipment Capital Leases | A summary of future principal obligations under long-term debt follows (in thousands): Years Ending December 31, Second Lien Notes Other Financing Total 2020 $ — $ 972 $ 972 2021 120,569 — 120,569 Total $ 120,569 $ 972 $ 121,541 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Sources of income (loss) before income taxes | The sources of income (loss) before income taxes are as follows (in thousands): Years Ended December 31, 2019 2018 2017 Domestic $ (85,278 ) $ (59,212 ) $ (12,487 ) Foreign 46,128 (8,468 ) (16,866 ) Total $ (39,150 ) $ (67,680 ) $ (29,353 ) |
Components of income taxes | Components of income taxes are as follows (in thousands): Years Ended December 31, 2019 2018 2017 Current: Federal $ — $ — $ (166 ) State and local 2 65 116 Foreign 10,002 8,905 5,494 Deferred: Federal — (346 ) (1,263 ) Foreign (1,940 ) (5,906 ) (4,157 ) Total income tax expense $ 8,064 $ 2,718 $ 24 |
Reconciliation of the expected income tax expense on income (loss) before income taxes using the statutory federal income tax | A reconciliation of the expected income tax expense on income (loss) before income taxes using the statutory federal income tax rate of 21% for 2019 and 2018 and 35% for 2017 to income tax expense follows (in thousands): Years Ended December 31, 2019 2018 2017 Expected income tax expense at 21% for 2019 and 2018 and 35% for 2017 $ (8,222 ) $ (14,213 ) $ (10,274 ) Foreign tax rate differential (1,996 ) 74 (2,914 ) Foreign tax differences (327 ) 4,703 (5,610 ) Global intangible low tax income inclusion 7,310 3,443 — State and local taxes 2 65 116 Nondeductible expenses 865 1,604 4,308 Change in U.S. tax rate — — 77,410 Expired capital loss — — 1,114 Valuation allowance: Valuation allowance on expiring capital losses — — (1,114 ) Valuation allowance on operations 10,432 7,042 (63,012 ) Total income tax expense $ 8,064 $ 2,718 $ 24 |
Tax effects of the cumulative temporary differences resulting in the net deferred income tax asset (liability) | The tax effects of the cumulative temporary differences resulting in the net deferred income tax asset (liability) are as follows (in thousands): December 31, 2019 2018 Deferred income tax assets: Accrued expenses $ 1,588 $ 1,126 Allowance accounts 6,161 6,415 Net operating loss carryforward 105,844 96,854 Equity method investment 35,292 35,292 Original issue discount 6,000 8,073 Interest limitation 10,132 5,845 Basis in identified intangibles 7,090 4,146 Tax credit carryforwards 5,070 5,345 Other 4,443 4,600 Total deferred income tax asset 181,620 167,696 Valuation allowance (170,937 ) (160,505 ) Net deferred income tax asset 10,683 7,191 Deferred income tax liabilities: Unbilled receivables (1,949 ) — Total deferred income tax asset, net $ 8,734 $ 7,191 |
Aggregate changes in gross amount of unrecognized tax benefits | During 2019 , 2018 and 2017 , the aggregate changes in the Company’s total gross amount of unrecognized tax benefits are summarized as follows (in thousands): Years Ended December 31, 2019 2018 2017 Beginning balance $ 447 $ 447 $ 1,299 Increases in unrecognized tax benefits – current year positions — — 59 Decreases in unrecognized tax benefits – prior year position — — (911 ) Ending balance $ 447 $ 447 $ 447 |
Other Income (Expense) (Tables)
Other Income (Expense) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Expense | A summary of other expense follows (in thousands): Years Ended December 31, 2019 2018 2017 Accrual for loss contingency related to legal proceedings (see Footnote 8) $ — $ — $ (5,000 ) Recovery of INOVA bad debts — — 844 Other income (expense) (1,617 ) (436 ) 211 Total other expense, net $ (1,617 ) $ (436 ) $ (3,945 ) |
Details of Selected Balance S_2
Details of Selected Balance Sheet Accounts (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of accounts receivable | A summary of accounts receivable follows (in thousands): December 31, 2019 2018 Accounts receivable, principally trade $ 29,548 $ 26,558 Less: allowance for doubtful accounts — (430 ) Accounts receivable, net $ 29,548 $ 26,128 |
Summary of inventories | A summary of inventories follows (in thousands): December 31, 2019 2018 Raw materials and purchased subassemblies $ 18,509 $ 20,011 Work-in-process 2,079 1,032 Finished goods 4,932 8,111 Less: reserve for excess and obsolete inventories (13,333 ) (15,024 ) Inventories, net $ 12,187 $ 14,130 |
Summary of property, plant, equipment and seismic rental equipment | Property, plant and equipment are stated at cost. Depreciation expense is provided straight-line over the following estimated useful lives: Years Machinery and equipment 3-7 Buildings 5-25 Seismic rental equipment 3-5 Leased equipment and other 3-10 A summary of property, plant and equipment follows (in thousands): December 31, 2019 2018 Buildings $ 15,486 $ 15,707 Machinery and equipment 133,048 132,135 Seismic rental equipment 1,669 1,423 Furniture and fixtures 3,347 3,859 Other 31,142 30,104 Total 184,692 183,228 Less: accumulated depreciation (134,951 ) (133,634 ) Less: impairment of long-lived assets (36,553 ) (36,553 ) Property, plant, equipment and seismic rental equipment, net $ 13,188 $ 13,041 |
Schedule of multi-client data library | At December 31, 2019 and 2018 , multi-client data library costs and accumulated amortization consisted of the following (in thousands): December 31, 2019 2018 Gross costs of multi-client data creation $ 1,007,762 $ 972,309 Less: accumulated amortization (816,401 ) (776,860 ) Less: impairments to multi-client data library (130,977 ) (121,905 ) Multi-client data library, net $ 60,384 $ 73,544 |
Summary of accrued expenses | A summary of accrued expenses follows (in thousands): December 31, 2019 2018 Compensation, including compensation-related taxes and commissions $ 15,218 $ 14,502 Accrued multi-client data library acquisition costs 4,219 3,746 Income tax payable 5,367 7,577 Other 5,524 5,586 Total $ 30,328 $ 31,411 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill | Changes in the carrying amount of goodwill for 2019 and 2018 are as follows (in thousands): E&P Technology & Services Optimization Software & Services Total Balance at January 1, 2018 $ 2,943 $ 21,146 $ 24,089 Impact of foreign currency translation adjustments — (1,174 ) (1,174 ) Balance at December 31, 2018 2,943 19,972 22,915 Impact of foreign currency translation adjustments — 670 670 Balance at December 31, 2019 $ 2,943 $ 20,642 $ 23,585 |
Stockholder's Equity and Stoc_2
Stockholder's Equity and Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Transactions Under the Stock Option Plans | Transactions under the stock option plans are summarized as follows: Option Price per Share Outstanding Vested Available for Grant January 1, 2017 $3.10 - $245.85 847,635 348,353 599,720 Granted 13.15 156,000 — (156,000 ) Vested — — 149,537 — Exercised 3.10 (15,000 ) (15,000 ) — Cancelled/forfeited 3.10 - 245.85 (98,294 ) (47,612 ) 82,118 Restricted stock granted out of option plans — — — (59,500 ) Vested restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans — — — 22,065 December 31, 2017 3.10 - 245.85 890,341 435,278 488,403 Increase in shares authorized — — — 1,200,000 Granted 24.50 10,000 — (10,000 ) Vested — — 153,944 — Exercised 3.10 (70,086 ) (70,086 ) — Cancelled/forfeited 3.10 - 245.85 (44,365 ) (44,231 ) 2,568 Restricted stock granted out of option plans — — — (996,775 ) Vested restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans — — — 48,524 December 31, 2018 $3.10 - $151.35 785,890 474,905 732,720 Granted 6.79 - 8.43 20,000 — (20,000 ) Vested — — 167,991 — Exercised 3.10 (86,900 ) (86,900 ) — Cancelled/forfeited 13.15 - 107.85 (29,781 ) (22,281 ) 10,799 Restricted stock granted out of option plans — — — (157,155 ) Vested restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans — — — 170,254 December 31, 2019 $3.10 - $151.35 689,209 533,715 736,618 |
Summary of Stock Options Outstanding | Stock options outstanding at December 31, 2019 are summarized as follows: Option Price per Share Outstanding Weighted Average Exercise Price of Outstanding Options Weighted Average Remaining Contract Life Vested Weighted Average Exercise Price of Vested Options $3.10 - $57.90 477,764 $ 17.36 8.1 years 261,364 $ 12.63 $61.05 - $71.85 74,432 $ 62.18 3.7 years 134,739 $ 60.20 $81.60 - $99.60 94,827 $ 89.87 2.6 years 95,426 $ 89.76 $106.05 - $151.35 42,186 $ 108.86 1.3 years 42,186 $ 108.86 Totals 689,209 $ 37.78 5.5 years 533,715 $ 46.04 |
Additional Information Related to the Company's Stock Options | Additional information related to the Company’s stock options follows: Number of Shares Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (000’s) Total outstanding at January 1, 2019 785,890 $ 35.33 5.4 years $ 572 Options granted 20,000 $ 7.61 $ 4.91 Options exercised (86,900 ) $ 3.10 Options cancelled (7,500 ) $ 13.15 Options forfeited (22,281 ) $ 67.88 Total outstanding at December 31, 2019 689,209 $ 37.78 5.5 years $ 1,071 Options exercisable and vested at December 31, 2019 533,715 $ 46.04 4.5 years $ 742 |
Schedule of Valuation Assumptions | The Company calculated the fair value of each 2018 SARs award using the following assumptions: Years Ended December 31, 2019 2018 Risk-free interest rates 1.9 % 3.0 % Expected lives (in years) 5.31 5.31 Expected dividend yield — % — % Expected volatility 79.0 % 82.9 % The Company calculated the fair value of each stock option on the date of grant using the Black-Scholes option pricing model. The following assumptions were used for each respective period: Years Ended December 31, 2019 2018 2017 Risk-free interest rates 1.62% 2.78% 2.14% Expected lives (in years) 5.0 5.0 5.0 Expected dividend yield —% —% —% Expected volatility 84.64% 73.67% 74.41% |
Status of the Company's Restricted Stock and Restricted Stock Unit Awards | The status of the Company’s restricted stock and restricted stock unit awards for 2019 follows: Number of Shares/Units Total nonvested at January 1, 2019 1,044,125 Granted 157,155 Vested (225,860 ) Forfeited (66,666 ) Total nonvested at December 31, 2019 908,754 |
Schedule of Share-based Compensation, Stock Appreciation Rights Award Activity | Additional information related to the Company's SARs follows: Number of Shares Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life Aggregate Intrinsic Value (000’s) Total outstanding at January 1, 2017 1,416,133 $ 7.70 SARs exercised (713,330 ) $ 3.10 SARs cancelled (136,939 ) $ 7.70 Total outstanding at December 31, 2017 565,864 $ 13.49 SARs granted 960,009 $ 8.85 $ 8.85 SARs exercised (34,999 ) $ 3.10 SARs forfeited (9,333 ) $ 45.00 Total outstanding at December 31, 2018 1,481,541 $ 10.53 SARs exercised (158,334 ) $ 3.10 SARs cancelled (368,528 ) $ 20.99 Total outstanding at December 31, 2019 954,679 $ 7.73 7.8 years $ 1,042 SARs exercisable and vested at December 31, 2019 186,670 $ 3.10 6.2 years $ 1,042 |
Summary of Stock-based Compensation Expense | The following tables summarizes stock-based compensation expense for 2019 , 2018 and 2017 as follows (in thousands): Years Ended December 31, 2019 2018 2017 Stock-based compensation expense $ 4,701 $ 3,337 $ 2,552 Tax benefit related thereto (972 ) (698 ) (862 ) Stock-based compensation expense, net of tax $ 3,729 $ 2,639 $ 1,690 Years Ended December 31, 2019 2018 2017 Stock appreciation rights expense $ 2,910 $ 822 $ 6,611 Tax benefit related thereto (611 ) (173 ) (2,314 ) Stock appreciation rights expense, net of tax $ 2,299 $ 649 $ 4,297 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information and Non-Cash Activity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information and Non-cash Activity | Supplemental disclosure of cash flow information follows (in thousands): Years Ended December 31, 2019 2018 2017 Cash paid during the period for: Interest $ 12,381 $ 12,463 $ 14,181 Income taxes 11,065 3,260 7,030 Non-cash items from investing and financing activities: Purchase of computer equipment financed through capital leases — 3,297 — Investment in multi-client data library financed through trade payables and accruals 6,649 4,956 9,059 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of maturities of lease obligations, operating lease | Future maturities of lease obligations follows (in thousands): Years Ending December 31, Operating Leases Finance Leases Total 2020 $ 12,708 $ 1,254 $ 13,962 2021 10,911 756 11,667 2022 10,718 — 10,718 2023 9,258 — 9,258 2024 5,109 — 5,109 Thereafter 4,022 — 4,022 Total lease payments $ 52,726 $ 2,010 $ 54,736 Less imputed interest (10,838 ) (141 ) (10,979 ) Total $ 41,888 $ 1,869 $ 43,757 |
Schedule of maturities of lease obligations, finance lease | Future maturities of lease obligations follows (in thousands): Years Ending December 31, Operating Leases Finance Leases Total 2020 $ 12,708 $ 1,254 $ 13,962 2021 10,911 756 11,667 2022 10,718 — 10,718 2023 9,258 — 9,258 2024 5,109 — 5,109 Thereafter 4,022 — 4,022 Total lease payments $ 52,726 $ 2,010 $ 54,736 Less imputed interest (10,838 ) (141 ) (10,979 ) Total $ 41,888 $ 1,869 $ 43,757 |
Schedule of supplemental cash flow information related to leases | Supplemental cash flow information related to leases follows: Years Ended December 31, 2019 2018 Cash paid for amounts included in the measurement of lease liabilities: Operating leases $ 12,284 $ 12,914 Equipment finance leases 1,069 638 |
Selected Quarterly Informatio_2
Selected Quarterly Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of selected quarterly information | A summary of selected quarterly information follows (in thousands, except per share amounts): Three Months Ended March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Service revenues $ 28,128 $ 30,407 $ 41,990 $ 30,755 Product revenues 8,828 11,368 11,249 11,954 Total net revenues 36,956 41,775 53,239 42,709 Gross profit 9,912 19,583 25,288 5,239 Income (loss) from operations (15,937 ) (2,553 ) 3,858 (9,827 ) Interest expense, net (3,112 ) (3,111 ) (3,155 ) (3,696 ) Other income (expense), net (792 ) 96 (242 ) (679 ) Income tax expense 1,407 2,719 3,790 148 Net income attributable to noncontrolling interests (112 ) (335 ) (394 ) (144 ) Net loss applicable to ION $ (21,360 ) $ (8,622 ) $ (3,723 ) $ (14,494 ) Net loss per share: Basic $ (1.52 ) $ (0.61 ) $ (0.26 ) $ (1.02 ) Diluted $ (1.52 ) $ (0.61 ) $ (0.26 ) $ (1.02 ) Three Months Ended March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 Service revenues $ 25,086 $ 15,752 $ 37,105 $ 61,095 Product revenues 8,422 8,991 10,095 13,499 Total net revenues 33,508 24,743 47,200 74,594 Gross profit (loss) 6,853 (1,517 ) 16,475 37,809 Loss from operations (12,640 ) (22,519 ) (2,452 ) (16,661 ) Interest expense, net (3,836 ) (2,911 ) (3,022 ) (3,203 ) Other income (expense), net (791 ) 84 91 180 Income tax expense (benefit) 1,072 154 2,079 (587 ) Net income attributable to noncontrolling interests (87 ) (366 ) (74 ) (246 ) Net loss applicable to ION $ (18,426 ) $ (25,866 ) $ (7,536 ) $ (19,343 ) Net loss per share: Basic $ (1.44 ) $ (1.86 ) $ (0.54 ) $ (1.38 ) Diluted $ (1.44 ) $ (1.86 ) $ (0.54 ) $ (1.38 ) |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet | December 31, 2019 Balance Sheet ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 8,426 $ 26 $ 24,613 $ — $ 33,065 Accounts receivable, net 8 19,493 10,047 — 29,548 Unbilled receivables — 7,314 4,501 — 11,815 Inventories, net — 6,902 5,285 — 12,187 Prepaid expenses and other current assets 3,292 1,513 1,207 — 6,012 Total current assets 11,726 35,248 45,653 — 92,627 Deferred income tax asset 402 8,417 (85 ) — 8,734 Property, plant and equipment, net 786 8,112 4,290 — 13,188 Multi-client data library, net — 54,479 5,905 — 60,384 Investment in subsidiaries 841,522 279,327 — (1,120,849 ) — Goodwill — — 23,585 — 23,585 Right-of-use assets 11,934 15,802 4,810 — 32,546 Intercompany receivables — 287,692 99,884 (387,576 ) — Other assets 1,171 905 54 — 2,130 Total assets $ 867,541 $ 689,982 $ 184,096 $ (1,508,425 ) $ 233,194 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ 972 $ 1,135 $ — $ — $ 2,107 Accounts payable 2,259 44,641 2,416 — 49,316 Accrued expenses 9,933 9,982 10,413 — 30,328 Accrued multi-client data library royalties — 18,616 215 — 18,831 Deferred revenue — 3,465 1,086 — 4,551 Current maturities of operating lease liabilities 4,429 5,469 1,157 — 11,055 Total current liabilities 17,593 83,308 15,287 — 116,188 Long-term debt, net of current maturities 118,618 734 — — 119,352 Operating lease liabilities, net of current maturities 11,208 15,346 4,279 — 30,833 Intercompany payables 755,524 — — (755,524 ) — Other long-term liabilities 1,418 35 — — 1,453 Total liabilities 904,361 99,423 19,566 (755,524 ) 267,826 Equity: Common stock 142 290,460 47,776 (338,236 ) 142 Additional paid-in capital 956,647 180,700 203,909 (384,609 ) 956,647 Accumulated earnings (deficit) (974,291 ) 396,793 18,837 (415,630 ) (974,291 ) Accumulated other comprehensive income (loss) (19,318 ) 4,281 (21,907 ) 17,626 (19,318 ) Due from ION Geophysical Corporation — (281,675 ) (86,273 ) 367,948 — Total stockholders’ equity (36,820 ) 590,559 162,342 (752,901 ) (36,820 ) Noncontrolling interests — — 2,188 — 2,188 Total equity (36,820 ) 590,559 164,530 (752,901 ) (34,632 ) Total liabilities and equity $ 867,541 $ 689,982 $ 184,096 $ (1,508,425 ) $ 233,194 December 31, 2018 Balance Sheet ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 13,782 $ 47 $ 19,722 $ — $ 33,551 Accounts receivable, net 8 17,349 8,771 — 26,128 Unbilled receivables — 12,697 31,335 — 44,032 Inventories, net — 8,721 5,409 — 14,130 Prepaid expenses and other current assets 3,891 1,325 2,566 — 7,782 Total current assets 17,681 40,139 67,803 — 125,623 Deferred income tax asset 805 6,261 125 — 7,191 Property, plant and equipment, net 489 8,922 3,630 — 13,041 Multi-client data library, net — 70,380 3,164 — 73,544 Investment in subsidiaries 836,002 247,359 — (1,083,361 ) — Goodwill — — 22,915 — 22,915 Right-of-use assets 18,513 21,350 7,940 — 47,803 Intercompany receivables — 305,623 60,255 (365,878 ) — Other assets 1,723 643 69 — 2,435 Total assets $ 875,213 $ 700,677 $ 165,901 $ (1,449,239 ) $ 292,552 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ 1,159 $ 1,069 $ — $ — $ 2,228 Accounts payable 2,407 29,602 2,904 — 34,913 Accrued expenses 7,011 10,036 14,364 — 31,411 Accrued multi-client data library royalties — 29,040 216 — 29,256 Deferred revenue — 6,515 1,195 — 7,710 Current maturities of operating lease liabilities 5,155 5,633 1,426 — 12,214 Total current liabilities 15,732 81,895 20,105 — 117,732 Long-term debt, net of current maturities 117,644 1,869 — — 119,513 Operating lease liabilities, net of current maturities 17,841 21,237 6,514 — 45,592 Intercompany payables 716,051 — — (716,051 ) — Other long-term liabilities 1,713 178 — 1,891 Total liabilities 868,981 105,179 26,619 (716,051 ) 284,728 Equity: Common stock 140 290,460 47,776 (338,236 ) 140 Additional paid-in capital 952,626 180,700 203,908 (384,608 ) 952,626 Accumulated earnings (deficit) (926,092 ) 390,691 (12,475 ) (378,216 ) (926,092 ) Accumulated other comprehensive income (loss) (20,442 ) 4,324 (22,023 ) 17,699 (20,442 ) Due from ION Geophysical Corporation — (270,677 ) (79,496 ) 350,173 — Total stockholders’ equity 6,232 595,498 137,690 (733,188 ) 6,232 Noncontrolling interests — — 1,592 — 1,592 Total equity 6,232 595,498 139,282 (733,188 ) 7,824 Total liabilities and equity $ 875,213 $ 700,677 $ 165,901 $ (1,449,239 ) $ 292,552 |
Condensed Income Statement | Year Ended December 31, 2019 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Total net revenues $ — $ 90,526 $ 84,153 $ — $ 174,679 Cost of goods sold — 86,531 28,126 — 114,657 Gross profit — 3,995 56,027 — 60,022 Total operating expenses 37,293 32,435 14,753 — 84,481 Income (loss) from operations (37,293 ) (28,440 ) 41,274 — (24,459 ) Interest expense, net (12,827 ) (638 ) 391 — (13,074 ) Intercompany interest, net 513 (1,423 ) 910 — — Equity in earnings (losses) of investments 1,464 35,950 — (37,414 ) — Other expense (12 ) (407 ) (1,198 ) — (1,617 ) Income (loss) before income taxes (48,155 ) 5,042 41,377 (37,414 ) (39,150 ) Income tax expense (benefit) 44 (1,060 ) 9,080 — 8,064 Net income (loss) (48,199 ) 6,102 32,297 (37,414 ) (47,214 ) Net income attributable to noncontrolling interests — — (985 ) — (985 ) Net income (loss) attributable to ION $ (48,199 ) $ 6,102 $ 31,312 $ (37,414 ) $ (48,199 ) Comprehensive net income (loss) $ (47,075 ) $ 6,059 $ 32,413 $ (37,487 ) $ (46,090 ) Comprehensive income attributable to noncontrolling interest — — (985 ) — (985 ) Comprehensive net income (loss) attributable to ION $ (47,075 ) $ 6,059 $ 31,428 $ (37,487 ) $ (47,075 ) Year Ended December 31, 2018 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Total net revenues $ — $ 96,649 $ 83,396 $ — $ 180,045 Cost of goods sold — 85,186 35,239 — 120,425 Gross profit — 11,463 48,157 — 59,620 Total operating expenses 32,888 29,235 51,769 — 113,892 Loss from operations (32,888 ) (17,772 ) (3,612 ) — (54,272 ) Interest expense, net (13,010 ) (136 ) 174 — (12,972 ) Intercompany interest, net 1,124 (12,137 ) 11,013 — — Equity in earnings (losses) of investments (26,446 ) 37,219 — (10,773 ) — Other income (expense) (196 ) 116 (356 ) — (436 ) Income (loss) before income taxes (71,416 ) 7,290 7,219 (10,773 ) (67,680 ) Income tax expense (benefit) (245 ) (6,711 ) 9,674 2,718 Net income (loss) (71,171 ) 14,001 (2,455 ) (10,773 ) (70,398 ) Net income attributable to noncontrolling interests — — (773 ) — (773 ) Net income (loss) attributable to ION $ (71,171 ) $ 14,001 $ (3,228 ) $ (10,773 ) $ (71,171 ) Comprehensive net income (loss) $ (72,734 ) $ 13,953 $ (4,797 ) $ (8,383 ) $ (71,961 ) Comprehensive income attributable to noncontrolling interest — — (773 ) — (773 ) Comprehensive net income (loss) attributable to ION $ (72,734 ) $ 13,953 $ (5,570 ) $ (8,383 ) $ (72,734 ) Year Ended December 31, 2017 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Total net revenues $ — $ 148,590 $ 48,964 $ — $ 197,554 Cost of goods sold — 90,754 31,161 — 121,915 Gross profit — 57,836 17,803 — 75,639 Total operating expenses 39,000 28,020 17,318 — 84,338 Income (loss) from operations (39,000 ) 29,816 485 — (8,699 ) Interest expense, net (16,729 ) (107 ) 127 — (16,709 ) Intercompany interest, net 1,084 (6,613 ) 5,529 — — Equity in earnings (losses) of investments 27,696 67,290 — (94,986 ) — Other income (expense) (4,610 ) (407 ) 1,072 — (3,945 ) Income (loss) before income taxes (31,559 ) 89,979 7,213 (94,986 ) (29,353 ) Income tax expense (benefit) (1,317 ) (1,427 ) 2,768 — 24 Net income (loss) (30,242 ) 91,406 4,445 (94,986 ) (29,377 ) Net income attributable to noncontrolling interests — — (865 ) — (865 ) Net income (loss) attributable to ION $ (30,242 ) $ 91,406 $ 3,580 $ (94,986 ) $ (30,242 ) Comprehensive net income (loss) $ (27,373 ) $ 91,358 $ 6,550 $ (97,043 ) $ (26,508 ) Comprehensive income attributable to noncontrolling interest — — (865 ) — (865 ) Comprehensive net income (loss) attributable to ION $ (27,373 ) $ 91,358 $ 5,685 $ (97,043 ) $ (27,373 ) |
Condensed Cash Flow Statement | Year Ended December 31, 2019 Statement of Cash Flows ION Geophysical Corporation The Guarantors All Other Subsidiaries Total Consolidated (In thousands) Cash flows from operating activities: Net cash provided by operating activities $ 10,342 $ 14,642 $ 9,166 $ 34,150 Cash flows from investing activities: Investment in multi-client data library — (18,765 ) (10,039 ) (28,804 ) Purchase of property, plant and equipment (375 ) (909 ) (1,127 ) (2,411 ) Net cash used in investing activities (375 ) (19,674 ) (11,166 ) (31,215 ) Cash flows from financing activities: Borrowings under revolving line of credit 40,000 — — 40,000 Repayments under revolving line of credit (40,000 ) — — (40,000 ) Payments on notes payable and long-term debt (1,069 ) (1,484 ) — (2,553 ) Intercompany lending (13,511 ) 6,495 7,016 — Proceeds from employee stock purchases and exercise of stock options 141 — — 141 Other financing activities (1,134 ) — — (1,134 ) Net cash provided by (used in) financing activities (15,573 ) 5,011 7,016 (3,546 ) Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash — — (125 ) (125 ) Net increase (decrease) in cash and cash equivalents (5,606 ) (21 ) 4,891 (736 ) Cash, cash equivalents and restricted cash at beginning of period 14,085 47 19,722 33,854 Cash, cash equivalents and restricted cash at end of period $ 8,479 $ 26 $ 24,613 $ 33,118 The following table is a reconciliation of cash, cash equivalents and restricted cash: December 31, 2019 ION Geophysical Corporation The Guarantors All Other Subsidiaries Total Consolidated (In thousands) Cash and cash equivalents $ 8,426 $ 26 $ 24,613 $ 33,065 Restricted cash included in prepaid expenses and other current assets 53 — — 53 Total cash, cash equivalents, and restricted cash shown in statements of cash flows $ 8,479 $ 26 $ 24,613 $ 33,118 Year Ended December 31, 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 $ (37,659 ) $ 39,407 $ 5,350 $ 7,098 Cash flows from investing activities: Investment in multi-client data library — (25,307 ) (2,969 ) (28,276 ) Purchase of property, plant and equipment (392 ) (959 ) (163 ) (1,514 ) Net cash used in investing activities (392 ) (26,266 ) (3,132 ) (29,790 ) Cash flows from financing activities: Repayments under revolving line of credit (10,000 ) — — (10,000 ) Payments on notes payable and long-term debt (30,169 ) (638 ) — (30,807 ) Cost associated with issuance of debt (1,247 ) — — (1,247 ) Intercompany lending 7,983 (12,522 ) 4,539 — Net proceeds from issuance of stocks 46,999 — — 46,999 Proceeds from employee stock purchases and exercise of stock options 214 — — 214 Other financing activities (1,351 ) — — (1,351 ) Net cash provided by (used in) financing activities 12,429 (13,160 ) 4,539 3,808 Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash — — 319 319 Net increase (decrease) in cash and cash equivalents (25,622 ) (19 ) 7,076 (18,565 ) Cash, cash equivalents and restricted cash at beginning of period 39,707 66 12,646 52,419 Cash, cash equivalents and restricted cash at end of period $ 14,085 $ 47 $ 19,722 $ 33,854 The following table is a reconciliation of cash, cash equivalents and restricted cash: December 31, 2018 ION Geophysical Corporation The Guarantors All Other Subsidiaries Total Consolidated (In thousands) Cash and cash equivalents $ 13,782 $ 47 $ 19,722 $ 33,551 Restricted cash included in other long-term assets 303 — — 303 Total cash, cash equivalents, and restricted cash shown in statements of cash flows $ 14,085 $ 47 $ 19,722 $ 33,854 Year Ended December 31, 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 $ (22,315 ) $ 73,154 $ (23,227 ) $ 27,612 Cash flows from investing activities: Investment in multi-client data library — (23,710 ) — (23,710 ) Purchase of property, plant and equipment (165 ) (817 ) (81 ) (1,063 ) Proceeds from sale of a cost-method investment — — — — Net cash used in investing activities (165 ) (24,527 ) (81 ) (24,773 ) Cash flows from financing activities: Payments on notes payable and long-term debt (1,591 ) (3,167 ) (58 ) (4,816 ) Cost associated with issuance of debt (53 ) — — (53 ) Intercompany lending 38,732 (45,609 ) 6,877 — Proceeds from employee stock purchases and exercise of stock options 1,619 — — 1,619 Other financing activities (343 ) — — (343 ) Net cash provided by (used in) financing activities 38,364 (48,776 ) 6,819 (3,593 ) Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash — — (260 ) (260 ) Net increase (decrease) in cash and cash equivalents 15,884 (149 ) (16,749 ) (1,014 ) Cash, cash equivalents and restricted cash at beginning of period 23,823 215 29,395 53,433 Cash, cash equivalents and restricted cash at end of period $ 39,707 $ 66 $ 12,646 $ 52,419 The following table is a reconciliation of cash, cash equivalents and restricted cash: December 31, 2017 ION Geophysical Corporation The Guarantors All Other Subsidiaries Total Consolidated (In thousands) Cash and cash equivalents $ 39,344 $ 66 $ 12,646 $ 52,056 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 statements of cash flows $ 39,707 $ 66 $ 12,646 $ 52,419 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Cash and Cash Equivalents and Foreign Currency Gains (Losses) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Foreign Currency Gains and Losses | |||
Total foreign currency transaction gains (losses) | $ (1.3) | $ (0.4) | $ (1.6) |
Cash and Cash Equivalents [Abstract] | |||
Short-term restricted cash | $ 0.1 | $ 0.3 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Property, Plant, and Equipment and Long-lived Asset Impairment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Impairment charges recognized | $ 0 | $ 36,553,000 | $ 0 |
Machinery and equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment useful life | 3 years | ||
Machinery and equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment useful life | 7 years | ||
Buildings | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment useful life | 5 years | ||
Buildings | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment useful life | 25 years | ||
Seismic rental equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment useful life | 3 years | ||
Seismic rental equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment useful life | 5 years | ||
Leased equipment and other | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment useful life | 3 years | ||
Leased equipment and other | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment useful life | 10 years |
Summary of Signigicant Accounti
Summary of Signigicant Accounting Policies - Multi-client Data Library Costs and Accumulated Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Multi-client data library capitalized income | $ 9,300 | $ 11,900 | $ 12,700 |
Impairment of multi-client data library | $ 9,072 | $ 0 | $ 2,304 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Goodwill | $ 23,585 | $ 22,915 | $ 24,089 |
Optimization Software & Services | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Goodwill | 20,642 | 19,972 | 21,146 |
E&P Technology & Services | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Goodwill | $ 2,943 | $ 2,943 | $ 2,943 |
Goodwill | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Operational forecast period used in fair value inputs | 3 years |
Summary of Significant Accoutni
Summary of Significant Accoutning Policies - Equity Method Investment (Details) - INOVA Geophysical - USD ($) | Dec. 31, 2019 | Dec. 31, 2014 |
Schedule of Equity Method Investments [Line Items] | ||
Equity method investment, accumulated other comprehensive loss | $ 0 | |
Equity method investments | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Revenue From Contracts With Customers (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Time period of contractual future performance obligations for which value not disclosed (or less) | 1 year |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
ROU assets | $ 32,546 | $ 47,803 | |
Total | $ 41,888 | ||
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
ROU assets | $ 59,500 | ||
Total | 70,600 | ||
Derecognition of deferred rent | $ 11,100 |
Segment and Geographic Inform_3
Segment and Geographic Information - Summary of Segment Information (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($)segment | Dec. 31, 2017USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of operating segments | segment | 2 | 2 | 3 | ||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Net revenues | $ 42,709,000 | $ 53,239,000 | $ 41,775,000 | $ 36,956,000 | $ 74,594,000 | $ 47,200,000 | $ 24,743,000 | $ 33,508,000 | $ 174,679,000 | $ 180,045,000 | $ 197,554,000 |
Gross profit (loss) | (5,239,000) | (25,288,000) | (19,583,000) | (9,912,000) | (37,809,000) | (16,475,000) | 1,517,000 | (6,853,000) | $ (60,022,000) | $ (59,620,000) | $ (75,639,000) |
Gross margin | 34.00% | 33.00% | 38.00% | ||||||||
Income (loss) from operations | (9,827,000) | 3,858,000 | (2,553,000) | (15,937,000) | (16,661,000) | (2,452,000) | (22,519,000) | (12,640,000) | $ (24,459,000) | $ (54,272,000) | $ (8,699,000) |
Interest expense, net | (3,696,000) | (3,155,000) | (3,111,000) | (3,112,000) | (3,203,000) | (3,022,000) | (2,911,000) | (3,836,000) | (13,074,000) | (12,972,000) | (16,709,000) |
Other expense, net | $ (679,000) | $ (242,000) | $ 96,000 | $ (792,000) | $ 180,000 | $ 91,000 | $ 84,000 | $ (791,000) | (1,617,000) | (436,000) | (3,945,000) |
Loss before income taxes | (39,150,000) | (67,680,000) | (29,353,000) | ||||||||
Total operating expenses | 84,481,000 | 113,892,000 | 84,338,000 | ||||||||
Impairment of long-lived assets | 0 | 36,553,000 | 0 | ||||||||
Ocean Bottom Integrated Technologies | Pro forma | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Income (loss) from operations | (1,700,000) | (11,100,000) | (16,300,000) | ||||||||
Total operating expenses | 1,700,000 | 5,100,000 | 6,700,000 | ||||||||
Operating segments | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Gross profit (loss) | $ (60,022,000) | $ (65,662,000) | $ (85,272,000) | ||||||||
Gross margin | 34.00% | 36.00% | 43.00% | ||||||||
Operating segments | E&P Technology & Services | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Net revenues | $ 125,578,000 | $ 136,520,000 | $ 157,249,000 | ||||||||
Gross profit (loss) | $ (35,699,000) | $ (43,369,000) | $ (65,196,000) | ||||||||
Gross margin | 28.00% | 32.00% | 41.00% | ||||||||
Income (loss) from operations | $ 8,833,000 | $ 21,758,000 | $ 42,505,000 | ||||||||
Operating segments | E&P Technology & Services | New Venture and Data Library | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Net revenues | 103,035,000 | 116,780,000 | 140,840,000 | ||||||||
Operating segments | E&P Technology & Services | New Venture | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Net revenues | 31,188,000 | 69,685,000 | 100,824,000 | ||||||||
Operating segments | E&P Technology & Services | Data Library | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Net revenues | 71,847,000 | 47,095,000 | 40,016,000 | ||||||||
Operating segments | E&P Technology & Services | Imaging Services | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Net revenues | 22,543,000 | 19,740,000 | 16,409,000 | ||||||||
Operating segments | Operations Optimization | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Net revenues | 49,101,000 | 43,525,000 | 40,305,000 | ||||||||
Gross profit (loss) | $ (24,323,000) | $ (22,293,000) | $ (20,076,000) | ||||||||
Gross margin | 50.00% | 51.00% | 50.00% | ||||||||
Income (loss) from operations | $ 8,189,000 | $ 7,295,000 | $ 8,022,000 | ||||||||
Operating segments | Operations Optimization | Devices | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Net revenues | 23,140,000 | 21,129,000 | 16,695,000 | ||||||||
Operating segments | Operations Optimization | Optimization Software & Services | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Net revenues | 25,961,000 | 22,396,000 | 23,610,000 | ||||||||
Support and other | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Income (loss) from operations | (41,481,000) | (83,325,000) | (59,226,000) | ||||||||
Other | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||
Gross profit (loss) | $ 0 | $ 6,042,000 | $ 9,633,000 | ||||||||
Gross margin | 0.00% | (3.00%) | (5.00%) |
Segment and Geographic Inform_4
Segment and Geographic Information - Depreciation and Amortization (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expense (including multi-client data library) | $ 43,198 | $ 57,751 | $ 63,694 |
Operating segments | E&P Technology & Services | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expense (including multi-client data library) | 41,813 | 51,673 | 53,663 |
Operating segments | Operations Optimization | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expense (including multi-client data library) | 940 | 995 | 1,349 |
Support and other | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expense (including multi-client data library) | 445 | 5,083 | 8,682 |
Support and other | Ocean Bottom Integrated Technologies | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization expense (including multi-client data library) | $ 0 | $ 4,200 | $ 7,000 |
Segment and Geographic Inform_5
Segment and Geographic Information - Summary of Total Assets (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Total assets | $ 233,194,000 | $ 292,552,000 | |
Impairment of long-lived assets | 0 | 36,553,000 | $ 0 |
North America | |||
Segment Reporting Information [Line Items] | |||
Total assets | 104,808,000 | 127,084,000 | |
Latin America | |||
Segment Reporting Information [Line Items] | |||
Total assets | 34,633,000 | 69,673,000 | |
Middle East | |||
Segment Reporting Information [Line Items] | |||
Total assets | 48,932,000 | 52,037,000 | |
Europe | |||
Segment Reporting Information [Line Items] | |||
Total assets | 37,946,000 | 38,463,000 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Total assets | 6,875,000 | 5,295,000 | |
Operating segments | E&P Technology & Services | |||
Segment Reporting Information [Line Items] | |||
Total assets | 133,787,000 | 191,207,000 | |
Operating segments | Operations Optimization | |||
Segment Reporting Information [Line Items] | |||
Total assets | 56,927,000 | 54,933,000 | |
Support and other | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 42,480,000 | 46,412,000 | |
Support and other | Ocean Bottom Integrated Technologies | |||
Segment Reporting Information [Line Items] | |||
Total assets | $ 1,200,000 |
Segment and Geographic Inform_6
Segment and Geographic Information - Fixed Assets Less Accumulated Depreciation by Geographic Area (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Total fixed assets less accumulated deprecation by geographic area | $ 73,572,000 | $ 86,585,000 | |
Impairment of long-lived assets | 0 | 36,553,000 | $ 0 |
North America | |||
Segment Reporting Information [Line Items] | |||
Total fixed assets less accumulated deprecation by geographic area | 56,566,000 | 67,283,000 | |
Europe | |||
Segment Reporting Information [Line Items] | |||
Total fixed assets less accumulated deprecation by geographic area | 2,095,000 | 1,140,000 | |
Latin America | |||
Segment Reporting Information [Line Items] | |||
Total fixed assets less accumulated deprecation by geographic area | 14,826,000 | 18,067,000 | |
Middle East | |||
Segment Reporting Information [Line Items] | |||
Total fixed assets less accumulated deprecation by geographic area | 73,000 | 36,000 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Total fixed assets less accumulated deprecation by geographic area | $ 12,000 | $ 59,000 |
Segment and Geographic Inform_7
Segment and Geographic Information - Net Revenues by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of net revenues by geographic area | |||||||||||
Net revenues | $ 42,709 | $ 53,239 | $ 41,775 | $ 36,956 | $ 74,594 | $ 47,200 | $ 24,743 | $ 33,508 | $ 174,679 | $ 180,045 | $ 197,554 |
Latin America | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | 60,684 | 68,871 | 68,241 | ||||||||
North America | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | 46,684 | 44,474 | 48,120 | ||||||||
Europe | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | 30,722 | 31,077 | 44,930 | ||||||||
Asia Pacific | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | 13,242 | 17,817 | 18,896 | ||||||||
Africa | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | 10,083 | 10,837 | 6,837 | ||||||||
Middle East | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | 7,347 | 5,526 | 2,308 | ||||||||
Other | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | $ 5,917 | $ 1,443 | $ 8,222 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | |||
Time period of contractual future performance obligations | 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. | ||
Accounts receivable and unbilled receivable | Customer concentration risk | Two customers | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 29.00% | ||
Accounts receivable and unbilled receivable | Customer concentration risk | One customer | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 23.00% | ||
International | Net revenues | Geographic concentration risk | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 73.00% | 75.00% | 76.00% |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Unbilled Receivables by Service (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disaggregation of Revenue [Line Items] | ||
Unbilled receivables | $ 11,815 | $ 44,032 |
New Venture | ||
Disaggregation of Revenue [Line Items] | ||
Unbilled receivables | 5,222 | 38,430 |
Imaging Services | ||
Disaggregation of Revenue [Line Items] | ||
Unbilled receivables | 6,539 | 5,075 |
Devices | ||
Disaggregation of Revenue [Line Items] | ||
Unbilled receivables | $ 54 | $ 527 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Unbilled Receivables (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Unbilled Revenues [Roll Forward] | |
Unbilled receivables at December 31, 2018 | $ 44,032 |
Recognition of unbilled receivables | 166,878 |
Revenues billed to customers | (199,095) |
Unbilled receivables at December 31, 2019 | $ 11,815 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Deferred Revenue by Service (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 4,551 | $ 7,710 |
New Venture | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | 1,956 | 5,797 |
Imaging Services | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | 1,501 | 307 |
Devices | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | 452 | 626 |
Optimization Software & Services | ||
Disaggregation of Revenue [Line Items] | ||
Deferred revenue | $ 642 | $ 980 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers - Deferred Revenue (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Revenue, Remaining Performance Obligation [Roll Forward] | |
Deferred revenue at December 31, 2018 | $ 7,710 |
Cash collected in excess of revenue recognized | 4,642 |
Recognition of deferred revenue | (7,801) |
Deferred revenue at December 31, 2019 | $ 4,551 |
Long-term Debt - Obligations (D
Long-term Debt - Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Obligations | ||
Costs associated with issuances of debt | $ (1,951) | $ (2,925) |
Total | 121,459 | 121,741 |
Current maturities of long-term debt | (2,107) | (2,228) |
Long-term debt, net of current maturities | 119,352 | 119,513 |
Senior secured notes | Senior secured second-priority lien notes (maturing December 15, 2021) | ||
Obligations | ||
Long-term debt, gross | 120,569 | 120,569 |
Revolving credit facility (maturing August 16, 2023) | ||
Obligations | ||
Long-term debt, gross | 0 | 0 |
Equipment finance leases (see Footnote 14) | ||
Obligations | ||
Long-term debt, gross | 1,869 | 2,938 |
Other debt | ||
Obligations | ||
Long-term debt, gross | $ 972 | $ 1,159 |
Long-term Debt and Lease Obliga
Long-term Debt and Lease Obligations - Narrative (Details) | Aug. 16, 2018USD ($) | Apr. 28, 2016 | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Aug. 15, 2018USD ($) |
Debt Instrument [Line Items] | |||||
Aggregate principal amount of debt | $ 121,459,000 | $ 121,741,000 | |||
Line of credit | Revolving credit facility (maturing August 16, 2023) | PNC Bank, National Association (PNC) | |||||
Debt Instrument [Line Items] | |||||
Debt term | 4 years | ||||
Amount of increase in maximum revolver | $ 10,000,000 | ||||
Maximum amount of certain indebtedness | 50,000,000 | 50,000,000 | $ 40,000,000 | ||
Current borrowing capacity | 39,300,000 | ||||
Indebtedness under the Credit Facility | $ 0 | ||||
Required liquidity maintained five consecutive business days | 6,250,000 | ||||
Required liquidity maintained any business day | 5,000,000 | ||||
Line of credit | Revolving credit facility (maturing August 16, 2023) | PNC Bank, National Association (PNC) | Subsidiary Issuer | |||||
Debt Instrument [Line Items] | |||||
Percentage of obligations secured by stock of Subsidiary Borrowers | 100.00% | ||||
Line of credit | Revolving credit facility (maturing August 16, 2023) | PNC Bank, National Association (PNC) | Minimum | |||||
Debt Instrument [Line Items] | |||||
Fixed charge coverage ratio | 1.1 | ||||
Line of credit | Revolving credit facility (maturing August 16, 2023) | PNC Bank, National Association (PNC) | GX Geoscience Corporation, S. De R.L. De C.V. [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum amount of certain indebtedness | $ 5,000,000 | ||||
Line of credit | Revolving credit facility (maturing August 16, 2023) | PNC Bank, National Association (PNC) | ION International Holdings L.P. | |||||
Debt Instrument [Line Items] | |||||
Percentage of obligations secured by stock of Subsidiary Borrowers | 65.00% | ||||
Line of credit | Revolving credit facility (maturing August 16, 2023) | PNC Bank, National Association (PNC) | Base Rate | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.00% | ||||
Line of credit | Revolving credit facility (maturing August 16, 2023) | PNC Bank, National Association (PNC) | Base Rate | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 3.00% | ||||
Line of credit | Revolving credit facility (maturing August 16, 2023) | PNC Bank, National Association (PNC) | LIBOR | Minimum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 3.00% | ||||
Line of credit | Revolving credit facility (maturing August 16, 2023) | PNC Bank, National Association (PNC) | LIBOR | Maximum | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 4.00% | ||||
Senior secured notes | Senior secured second-priority lien notes (maturing December 15, 2021) | |||||
Debt Instrument [Line Items] | |||||
Stated rate on debt | 9.125% | ||||
E&P Technology & Services | Data Library | Line of credit | Revolving credit facility (maturing August 16, 2023) | |||||
Debt Instrument [Line Items] | |||||
Maximum amount of certain indebtedness | $ 28,500,000 | $ 15,000,000 |
Long-term Debt and Lease Obli_2
Long-term Debt and Lease Obligations - Redemption Percentages for Future Periods (Details) - Senior secured notes - Senior secured second-priority lien notes (maturing December 15, 2021) | Dec. 15, 2019 |
2019 | |
Debt Instrument, Redemption [Line Items] | |
Notes redemption percentages | 105.50% |
2020 | |
Debt Instrument, Redemption [Line Items] | |
Notes redemption percentages | 103.50% |
2021 and thereafter | |
Debt Instrument, Redemption [Line Items] | |
Notes redemption percentages | 100.00% |
Long-term Debt and Lease Obli_3
Long-term Debt and Lease Obligations - Equipment Capital Leases (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Equipment Capital Leases | |
2019 | $ 972 |
2020 | 120,569 |
Total | 121,541 |
Second Lien Notes | |
Equipment Capital Leases | |
2019 | 0 |
2020 | 120,569 |
Total | 120,569 |
Other Financing | |
Equipment Capital Leases | |
2019 | 972 |
2020 | 0 |
Total | $ 972 |
Net Loss per Common Share (Deta
Net Loss per Common Share (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Earnings Per Share [Abstract] | ||||
Number of shares issued or committed for issuance under outstanding stock options (in shares) | 689,209 | 785,890 | 890,341 | 847,635 |
Number of shares of restricted stock and shares reserved for restricted stock units outstanding (in shares) | 908,754 | 1,044,125 | 201,702 |
Income Taxes - Sources of Incom
Income Taxes - Sources of Income (Loss) Before Taxes and Components of Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Sources of income (loss) before income taxes | |||||||||||
Domestic | $ (85,278) | $ (59,212) | $ (12,487) | ||||||||
Foreign | 46,128 | (8,468) | (16,866) | ||||||||
Loss before income taxes | (39,150) | (67,680) | (29,353) | ||||||||
Current: | |||||||||||
Federal | 0 | 0 | (166) | ||||||||
State and local | 2 | 65 | 116 | ||||||||
Foreign | 10,002 | 8,905 | 5,494 | ||||||||
Deferred: | |||||||||||
Federal | 0 | (346) | (1,263) | ||||||||
Foreign | (1,940) | (5,906) | (4,157) | ||||||||
Total income tax expense | $ 148 | $ 3,790 | $ 2,719 | $ 1,407 | $ (587) | $ 2,079 | $ 154 | $ 1,072 | $ 8,064 | $ 2,718 | $ 24 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Expected Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 35.00% | ||||||||
Reconciliation of the expected income tax expense on income (loss) before income taxes using the statutory federal income tax | |||||||||||
Expected income tax expense at 21% for 2019 and 2018 and 35% for 2017 | $ (8,222) | $ (14,213) | $ (10,274) | ||||||||
Foreign tax rate differential | (1,996) | 74 | (2,914) | ||||||||
Foreign tax differences | (327) | 4,703 | (5,610) | ||||||||
Global intangible low tax income inclusion | 7,310 | 3,443 | 0 | ||||||||
State and local taxes | 2 | 65 | 116 | ||||||||
Nondeductible expenses | 865 | 1,604 | 4,308 | ||||||||
Change in U.S. tax rate | 0 | 0 | 77,410 | ||||||||
Expired capital loss | 0 | 0 | 1,114 | ||||||||
Valuation allowance: | |||||||||||
Valuation allowance on expiring capital losses | 0 | 0 | (1,114) | ||||||||
Valuation allowance on operations | 10,432 | 7,042 | (63,012) | ||||||||
Total income tax expense | $ 148 | $ 3,790 | $ 2,719 | $ 1,407 | $ (587) | $ 2,079 | $ 154 | $ 1,072 | $ 8,064 | $ 2,718 | $ 24 |
Income Taxes - Tax Effects of C
Income Taxes - Tax Effects of Cumulative Temporary Differences (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred income tax assets: | ||
Accrued expenses | $ 1,588 | $ 1,126 |
Allowance accounts | 6,161 | 6,415 |
Net operating loss carryforward | 105,844 | 96,854 |
Equity method investment | 35,292 | 35,292 |
Original issue discount | 6,000 | 8,073 |
Interest limitation | 10,132 | 5,845 |
Basis in identified intangibles | 7,090 | 4,146 |
Tax credit carryforwards | 5,070 | 5,345 |
Other | 4,443 | 4,600 |
Total deferred income tax asset | 181,620 | 167,696 |
Valuation allowance | (170,937) | (160,505) |
Net deferred income tax asset | 10,683 | 7,191 |
Deferred income tax liabilities: | ||
Unbilled receivables | (1,949) | 0 |
Total deferred income tax asset, net | $ 8,734 | $ 7,191 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Operating Loss Carryforwards [Line Items] | ||||
Unrecognized tax benefits | $ 447 | $ 447 | $ 447 | $ 1,299 |
Outside book-over-tax basis difference in its foreign subsidiaries | 45,200 | |||
United States Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carry-forwards | 311,800 | |||
Foreign Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carry-forwards | $ 159,700 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 447 | $ 447 | $ 1,299 |
Increases in unrecognized tax benefits – current year positions | 0 | 0 | 59 |
Decreases in unrecognized tax benefits – prior year position | 0 | 0 | (911) |
Ending balance | $ 447 | $ 447 | $ 447 |
Legal Matters (Details)
Legal Matters (Details) | Mar. 14, 2017USD ($) | Nov. 25, 2016USD ($) | Jun. 30, 2009patent | Dec. 31, 2019patent | Dec. 09, 2019USD ($) | Dec. 31, 2014USD ($) |
Pending Litigation | WesternGeco | ||||||
Loss Contingencies [Line Items] | ||||||
Number of patent apparatus claims contained | patent | 4 | |||||
Pending Litigation | DGH Appeal | ||||||
Loss Contingencies [Line Items] | ||||||
Amount of sales proceeds in escrow | $ 4,500,000 | |||||
Settled Litigation | WesternGeco | ||||||
Loss Contingencies [Line Items] | ||||||
Damages paid | $ 25,800,000 | |||||
Total damages awarded | $ 98,000,000 | |||||
Number of claims invalidated | patent | 4 | |||||
Number of claims | patent | 6 | |||||
Settled Litigation | WesternGeco | Lost Profits | ||||||
Loss Contingencies [Line Items] | ||||||
Accrual for loss contingency related to legal proceedings | $ 123,800,000 |
Other Income (Expense) (Details
Other Income (Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |||||||||||
Accrual for loss contingency related to legal proceedings (see Footnote 8) | $ 0 | $ 0 | $ (5,000) | ||||||||
Recovery of INOVA bad debts | 0 | 0 | 844 | ||||||||
Other income (expense) | (1,617) | (436) | 211 | ||||||||
Total other expense, net | $ (679) | $ (242) | $ 96 | $ (792) | $ 180 | $ 91 | $ 84 | $ (791) | $ (1,617) | $ (436) | $ (3,945) |
Details of Selected Balance S_3
Details of Selected Balance Sheet Accounts - Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts receivable, principally trade | $ 29,548 | $ 26,558 |
Less: allowance for doubtful accounts | 0 | (430) |
Accounts receivable, net | $ 29,548 | $ 26,128 |
Details of Selected Balance S_4
Details of Selected Balance Sheet Accounts - Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Raw materials and purchased subassemblies | $ 18,509 | $ 20,011 | |
Work-in-process | 2,079 | 1,032 | |
Finished goods | 4,932 | 8,111 | |
Less: reserve for excess and obsolete inventories | (13,333) | (15,024) | |
Inventories, net | 12,187 | 14,130 | |
Write-down of excess and obsolete inventory | $ 517 | $ 665 | $ 398 |
Details of Selected Balance S_5
Details of Selected Balance Sheet Accounts - Property, Plant and Equipment (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment | $ 183,228,000 | ||
Property, plant, equipment and seismic rental equipment | $ 184,692,000 | ||
Less: accumulated depreciation | 134,951,000 | ||
Less: accumulated depreciation | (133,634,000) | ||
Less: impairment of long-lived assets | 0 | (36,553,000) | $ 0 |
Property, plant, equipment and seismic rental equipment, net | 13,188,000 | ||
Property, plant, equipment and seismic rental equipment, net | 13,041,000 | ||
Depreciation and amortization under capital leases | 3,100,000 | 7,600,000 | $ 15,200,000 |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment | 15,486,000 | 15,707,000 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment | 132,135,000 | ||
Property, plant, equipment and seismic rental equipment | 133,048,000 | ||
Seismic rental equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment | 1,669,000 | 1,423,000 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment | 3,347,000 | 3,859,000 | |
Other | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment | $ 31,142,000 | $ 30,104,000 |
Details of Selected Balance S_6
Details of Selected Balance Sheet Accounts Details of Selected Balance Sheet Accounts - Multi-Client Data Library (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Gross costs of multi-client data creation | $ 1,007,762 | $ 972,309 | |
Less: accumulated amortization | (816,401) | (776,860) | |
Less: impairments to multi-client data library | (130,977) | (121,905) | |
Multi-client data library, net | 60,384 | 73,544 | |
Amortization of multi-client data library | 39,541 | 48,988 | $ 47,102 |
Impairment of multi-client data library | $ 9,072 | $ 0 | $ 2,304 |
Details of Selected Balance S_7
Details of Selected Balance Sheet Accounts - Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Compensation, including compensation-related taxes and commissions | $ 15,218 | $ 14,502 |
Accrued multi-client data library acquisition costs | 4,219 | 3,746 |
Income tax payable | 5,367 | 7,577 |
Other | 5,524 | 5,586 |
Total accrued expenses | $ 30,328 | $ 31,411 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Changes in the carrying amount of goodwill | ||
Goodwill, balance beginning | $ 22,915 | $ 24,089 |
Impact of foreign currency translation adjustments | 670 | (1,174) |
Goodwill, balance ending | 23,585 | 22,915 |
Provision for impairment of goodwill | 0 | 0 |
E&P Technology & Services | ||
Changes in the carrying amount of goodwill | ||
Goodwill, balance beginning | 2,943 | 2,943 |
Impact of foreign currency translation adjustments | 0 | 0 |
Goodwill, balance ending | 2,943 | 2,943 |
Optimization Software & Services | ||
Changes in the carrying amount of goodwill | ||
Goodwill, balance beginning | 19,972 | 21,146 |
Impact of foreign currency translation adjustments | 670 | (1,174) |
Goodwill, balance ending | $ 20,642 | $ 19,972 |
Stockholder's Equity and Stoc_3
Stockholder's Equity and Stock-based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands | Dec. 01, 2018$ / sharesshares | Feb. 21, 2018USD ($)$ / sharesshares | Mar. 01, 2016individual$ / sharesshares | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)$ / sharesshares | Nov. 30, 2018shares | Dec. 31, 2016shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Additional warrants purchased (in shares) | shares | 1,820,000 | ||||||||
Net proceeds from issuance of stocks | $ | $ 47,000 | $ 0 | $ 46,999 | $ 0 | |||||
Extinguishment of debt | $ | $ 28,500 | ||||||||
Warrants exercise price (usd per share) | $ 33.60 | ||||||||
Total intrinsic value of options exercised | $ | $ 600 | 1,400 | 100 | ||||||
Cash received from option exercises | $ | $ 200 | $ 100 | |||||||
Weighted average grant date fair value for stock option awards (usd per share) | $ 4.91 | $ 15.23 | $ 8.10 | ||||||
Term of common stock used in determining market-based implied volatility | 6 months | ||||||||
Stock available for issuance (in shares) | shares | 1,700,000 | ||||||||
Outstanding, maximum (usd per share) | $ 151.35 | 151.35 | 245.85 | ||||||
Outstanding, minimum (usd per share) | $ 3.10 | $ 3.10 | $ 3.10 | ||||||
Outstanding (in shares) | shares | 689,209 | 785,890 | 890,341 | 847,635 | |||||
Exercise of stock options (in shares) | shares | 86,900 | 70,086 | 15,000 | ||||||
2013 LTIP | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock available for issuance (in shares) | shares | 1,200,000 | ||||||||
Stock options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Stock options, award vesting period | 4 years | ||||||||
Stock options, term in years | 10 years | ||||||||
Restricted stock and restricted stock unit | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Public equity offering (in shares) | shares | 900,002 | ||||||||
Stock options, award vesting period | 3 years | ||||||||
Intrinsic value of restricted stock and restricted stock unit awards | $ | $ 7,900 | $ 5,400 | $ 4,000 | ||||||
Weighted average grant date fair value for restricted stock and restricted stock unit awards (usd per share) | $ 7.98 | $ 10.60 | $ 11.36 | ||||||
Total fair value of shares vested | $ | $ 2,100 | $ 3,800 | $ 600 | ||||||
Shares vested (in shares) | shares | 225,860 | ||||||||
Restricted stock and restricted stock unit | First one-third of awards | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Weighted average grant date fair value for stock option awards (usd per share) | $ 7.19 | ||||||||
Weighted average price limit in vesting period (usd per share) | $ 17.50 | ||||||||
Annual vesting percentage | 33.33% | ||||||||
Percentage of shares allowed to be exercised annually, if vested | 33.33% | ||||||||
Restricted stock and restricted stock unit | Second one-third of awards | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Weighted average grant date fair value for stock option awards (usd per share) | $ 6.51 | ||||||||
Weighted average price limit in vesting period (usd per share) | $ 22.50 | ||||||||
Annual vesting percentage | 33.33% | ||||||||
Percentage of shares allowed to be exercised annually, if vested | 66.67% | ||||||||
Restricted stock and restricted stock unit | Final one-third of awards | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Weighted average grant date fair value for stock option awards (usd per share) | $ 5.89 | ||||||||
Weighted average price limit in vesting period (usd per share) | $ 27.50 | ||||||||
Annual vesting percentage | 33.33% | ||||||||
Stock appreciation rights (SARs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Public equity offering (in shares) | shares | 960,009 | ||||||||
Stock options, award vesting period | 4 years | ||||||||
Stock options, term in years | 10 years | ||||||||
Weighted average grant date fair value for stock option awards (usd per share) | $ 8.85 | ||||||||
Exercise price of awards issued during period | $ 8.85 | $ 3.1 | |||||||
Maximum value of SARs (in dollars per share) | $ 18.65 | $ 19.40 | |||||||
Outstanding, maximum (usd per share) | 27.50 | 22.50 | |||||||
Outstanding, minimum (usd per share) | $ 8.85 | $ 3.10 | |||||||
Outstanding (in shares) | shares | 954,679 | 1,481,541 | 565,864 | 1,416,133 | |||||
Number of awards issued during period | shares | 1,210,000 | ||||||||
Number of individuals that received SARs | individual | 15 | ||||||||
Percentage of fair market value of shares for calculation of exercise price SAR | 100.00% | ||||||||
Exercise of stock options (in shares) | shares | 158,334 | 34,999 | 713,330 | ||||||
Stock appreciation rights (SARs) | Equity Investment Program | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Exercise of stock options (in shares) | shares | 663,330 | ||||||||
Participants gain on exercises of awards (usd per share) | $ 9.95 | ||||||||
Stock appreciation rights (SARs) | First one-third of awards | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Annual vesting percentage | 33.33% | ||||||||
Percentage of shares allowed to be exercised annually, if vested | 33.33% | ||||||||
Percentage that weighted average price of common stock must be greater than exercise price of SARs | 120.00% | ||||||||
Stock appreciation rights (SARs) | Second one-third of awards | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Annual vesting percentage | 33.33% | ||||||||
Percentage of shares allowed to be exercised annually, if vested | 66.67% | ||||||||
Percentage that weighted average price of common stock must be greater than exercise price of SARs | 125.00% | ||||||||
Stock appreciation rights (SARs) | Final one-third of awards | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Annual vesting percentage | 33.33% | ||||||||
Percentage that weighted average price of common stock must be greater than exercise price of SARs | 130.00% | ||||||||
2018 Stock Appreciation Rights (SARs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Outstanding (in shares) | shares | 768,009 | ||||||||
2016 Stock Appreciation Rights (SARs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Outstanding (in shares) | shares | 186,670 | ||||||||
Common Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Public equity offering (in shares) | shares | 1,820,000 | 1,820,000 | |||||||
Price per share of common stock share sold (usd per share) | $ 27.5 | ||||||||
Exercise of stock options (in shares) | shares | 86,900 | 70,086 | 15,000 |
Stockholder's Equity and Stoc_4
Stockholder's Equity and Stock-based Compensation - Transactions Under Stock Option Plans Summary (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Option Price per Share | |||
Outstanding, minimum (usd per share) | $ 3.10 | $ 3.10 | $ 3.10 |
Outstanding, maximum (usd per share) | 151.35 | 151.35 | 245.85 |
Granted, minimum (usd per share) | 6.79 | 24.50 | 3.15 |
Granted, maximum (usd per share) | 8.43 | 24.50 | 3.15 |
Exercised, minimum (usd per share) | 3.10 | 3.10 | 3.10 |
Exercised, maximum (usd per share) | 3.10 | 3.10 | 3.10 |
Cancelled/forfeited, minimum (usd per share) | 13.15 | 3.10 | 3.10 |
Cancelled/forfeited, maximum (usd per share) | $ 107.85 | $ 245.85 | $ 245.85 |
Outstanding | |||
Beginning balance (in shares) | 785,890 | 890,341 | 847,635 |
Granted (in shares) | 20,000 | 10,000 | 156,000 |
Exercised (in shares) | (86,900) | (70,086) | (15,000) |
Cancelled/forfeited (in shares) | (29,781) | (44,365) | (98,294) |
Ending balance (in shares) | 689,209 | 785,890 | 890,341 |
Vested | |||
Vested, beginning balance (in shares) | 474,905 | 435,278 | 348,353 |
Vested (in shares) | 167,991 | 153,944 | 149,537 |
Exercised (in shares) | (86,900) | (70,086) | (15,000) |
Cancelled/forfeited (in shares) | (22,281) | (44,231) | (47,612) |
Vested, ending balance (in shares) | 533,715 | 474,905 | 435,278 |
Available for Grant | |||
Beginning balance (in shares) | 732,720 | 488,403 | 599,720 |
Increase in shares authorized (in shares) | 1,200,000 | ||
Granted (in shares) | 20,000 | 10,000 | 156,000 |
Cancelled/forfeited (in shares) | 10,799 | 2,568 | 82,118 |
Restricted stock granted out of option plans (in shares) | (157,155) | (996,775) | (59,500) |
Vested restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans (in shares) | 170,254 | 48,524 | 22,065 |
Ending balance (in shares) | 736,618 | 732,720 | 488,403 |
Stockholder's Equity and Stoc_5
Stockholder's Equity and Stock-based Compensation - Stock Options Outstanding by Price Range (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of stock options outstanding | |||
Option Price per Share, minimum (usd per share) | $ 3.10 | $ 3.10 | $ 3.10 |
Option Price per Share, maximum (usd per share) | $ 151.35 | $ 151.35 | $ 245.85 |
Outstanding (in shares) | 689,209 | ||
Weighted Average Exercise Price of Outstanding Options (usd per share) | $ 37.78 | ||
Weighted Average Remaining Contract Life | 5 years 6 months | ||
Vested (in shares) | 533,715 | ||
Weighted Average Exercise Price of Vested Options (usd per share) | $ 46.04 | ||
$3.10 - $57.90 | |||
Summary of stock options outstanding | |||
Option Price per Share, minimum (usd per share) | 3.10 | ||
Option Price per Share, maximum (usd per share) | $ 57.90 | ||
Outstanding (in shares) | 477,764 | ||
Weighted Average Exercise Price of Outstanding Options (usd per share) | $ 17.36 | ||
Weighted Average Remaining Contract Life | 8 years 1 month 6 days | ||
Vested (in shares) | 261,364 | ||
Weighted Average Exercise Price of Vested Options (usd per share) | $ 12.63 | ||
$61.05 - $71.85 | |||
Summary of stock options outstanding | |||
Option Price per Share, minimum (usd per share) | 61.05 | ||
Option Price per Share, maximum (usd per share) | $ 71.85 | ||
Outstanding (in shares) | 74,432 | ||
Weighted Average Exercise Price of Outstanding Options (usd per share) | $ 62.18 | ||
Weighted Average Remaining Contract Life | 3 years 8 months 12 days | ||
Vested (in shares) | 134,739 | ||
Weighted Average Exercise Price of Vested Options (usd per share) | $ 60.20 | ||
$81.60 - $99.60 | |||
Summary of stock options outstanding | |||
Option Price per Share, minimum (usd per share) | 81.60 | ||
Option Price per Share, maximum (usd per share) | $ 99.60 | ||
Outstanding (in shares) | 94,827 | ||
Weighted Average Exercise Price of Outstanding Options (usd per share) | $ 89.87 | ||
Weighted Average Remaining Contract Life | 2 years 7 months 6 days | ||
Vested (in shares) | 95,426 | ||
Weighted Average Exercise Price of Vested Options (usd per share) | $ 89.76 | ||
$106.05 - $151.35 | |||
Summary of stock options outstanding | |||
Option Price per Share, minimum (usd per share) | 206.05 | ||
Option Price per Share, maximum (usd per share) | $ 151.35 | ||
Outstanding (in shares) | 42,186 | ||
Weighted Average Exercise Price of Outstanding Options (usd per share) | $ 108.86 | ||
Weighted Average Remaining Contract Life | 1 year 3 months 18 days | ||
Vested (in shares) | 42,186 | ||
Weighted Average Exercise Price of Vested Options (usd per share) | $ 108.86 |
Stockholder's Equity and Stoc_6
Stockholder's Equity and Stock-based Compensation - Stock Options Outstanding Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares | |||
Beginning balance (in shares) | 785,890 | 890,341 | 847,635 |
Options granted (in shares) | 20,000 | ||
Options exercised (in shares) | (86,900) | (70,086) | (15,000) |
Options cancelled (in shares) | (7,500) | ||
Options forfeited (in shares) | (22,281) | ||
Ending balance (in shares) | 689,209 | 785,890 | 890,341 |
Options exercisable and vested (in shares) | 533,715 | ||
Weighted Average Exercise Price | |||
Beginning balance (usd per share) | $ 35.33 | ||
Options granted (usd per share) | 7.61 | ||
Options exercised (usd per share) | 3.10 | ||
Options cancelled (usd per share) | 13.15 | ||
Options forfeited (usd per share) | 67.88 | ||
Ending balance (usd per share) | 37.78 | $ 35.33 | |
Options exercisable and vested (usd per share) | 46.04 | ||
Additional Disclosures | |||
Weighted average grant date fair value for stock option awards (usd per share) | $ 4.91 | $ 15.23 | $ 8.10 |
Weighted average remaining contractual life, outstanding | 5 years 6 months | 5 years 4 months 24 days | |
Weighted average remaining contractual life, Options exercisable and vested | 4 years 6 months | ||
Aggregate intrinsic value, outstanding | $ 1,071 | $ 572 | |
Aggregate intrinsic value, Options exercisable and vested | $ 742 |
Stockholder's Equity and Stoc_7
Stockholder's Equity and Stock-based Compensation - Valuation Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rates | 1.62% | 2.78% | 2.14% |
Expected lives (in years) | 5 years | 5 years | 5 years |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 84.64% | 73.67% | 74.41% |
Stock appreciation rights (SARs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rates | 1.90% | 3.00% | |
Expected lives (in years) | 5 years 3 months 22 days | 5 years 3 months 22 days | |
Expected dividend yield | 0.00% | 0.00% | |
Expected volatility | 79.00% | 82.90% |
Stockholder's Equity and Stoc_8
Stockholder's Equity and Stock-based Compensation - Restricted Stock and Restricted Stock Unit Plans (Details) | 12 Months Ended |
Dec. 31, 2019shares | |
Status of the Company's restricted stock and restricted stock unit awards | |
Total nonvested, Beginning balance (in shares) | 1,044,125 |
Total nonvested, Ending balance (in shares) | 908,754 |
Restricted stock and restricted stock unit | |
Status of the Company's restricted stock and restricted stock unit awards | |
Total nonvested, Beginning balance (in shares) | 1,044,125 |
Granted (in shares) | 157,155 |
Vested (in shares) | (225,860) |
Forfeited (in shares) | (66,666) |
Total nonvested, Ending balance (in shares) | 908,754 |
Stockholder's Equity and Stoc_9
Stockholder's Equity and Stock-based Compensation - Stock Appreciation Rights (SARs) Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Outstanding | |||
Beginning balance (in shares) | 785,890 | 890,341 | 847,635 |
SARs granted (in shares) | 20,000 | ||
Exercised (in shares) | (86,900) | (70,086) | (15,000) |
SARs cancelled (in shares) | (22,281) | (44,231) | (47,612) |
SARs forfeited (in shares) | (22,281) | ||
Ending balance (in shares) | 689,209 | 785,890 | 890,341 |
Weighted Average Exercise Price | |||
Beginning balance (usd per share) | $ 35.33 | ||
Ending balance (usd per share) | 37.78 | $ 35.33 | |
Weighted Average Grant Date Fair Value | |||
SARs granted (usd per share) | $ 4.91 | $ 15.23 | $ 8.10 |
Outstanding | |||
Weighted average remaining contractual life, outstanding | 5 years 6 months | 5 years 4 months 24 days | |
Aggregate intrinsic value, outstanding | $ 1,071 | $ 572 | |
Stock appreciation rights (SARs) | |||
Outstanding | |||
Beginning balance (in shares) | 1,481,541 | 565,864 | 1,416,133 |
SARs granted (in shares) | 960,009 | ||
Exercised (in shares) | (158,334) | (34,999) | (713,330) |
SARs cancelled (in shares) | (368,528) | (136,939) | |
SARs forfeited (in shares) | (9,333) | ||
Ending balance (in shares) | 954,679 | 1,481,541 | 565,864 |
Weighted Average Exercise Price | |||
Beginning balance (usd per share) | $ 10.53 | $ 13.49 | $ 7.70 |
SARs granted (usd per share) | 8.85 | ||
SARs exercised (usd per share) | 3.10 | 3.10 | 3.10 |
SARs cancelled (usd per share) | 20.99 | 7.70 | |
SARs forfeited (usd per share) | 45 | ||
Ending balance (usd per share) | $ 7.73 | 10.53 | $ 13.49 |
Weighted Average Grant Date Fair Value | |||
SARs granted (usd per share) | $ 8.85 | ||
Outstanding | |||
Weighted average remaining contractual life, outstanding | 7 years 9 months 18 days | ||
Aggregate intrinsic value, outstanding | $ 1,042 | ||
Vested | |||
Number of shares (in shares) | 186,670 | ||
Weighted average exercise price (usd per share) | $ 3.10 | ||
Weighted average remaining contractual life, exercisable and vested | 6 years 2 months 12 days | ||
Aggregate intrinsic value, exercisable and vested | $ 1,042 |
Stockholder's Equity and Sto_10
Stockholder's Equity and Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 4,701 | $ 3,337 | $ 2,552 |
Tax benefit related thereto | (972) | (698) | (862) |
Stock-based compensation expense, net of tax | 3,729 | 2,639 | 1,690 |
Stock appreciation rights (SARs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | 2,910 | 822 | 6,611 |
Tax benefit related thereto | (611) | (173) | (2,314) |
Stock-based compensation expense, net of tax | $ 2,299 | $ 649 | $ 4,297 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information and Non-Cash Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash paid during the period for: | |||
Interest | $ 12,381 | $ 12,463 | $ 14,181 |
Income taxes | 11,065 | 3,260 | 7,030 |
Non-cash items from investing and financing activities: | |||
Purchase of computer equipment financed through capital leases | 0 | 3,297 | 0 |
Investment in multi-client data library financed through trade payables and accruals | $ 6,649 | $ 4,956 | $ 9,059 |
Lease Obligations - Narrative (
Lease Obligations - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Option to extend | 10 years | |||
Option to terminate | 1 year | |||
Operating leases, rent expense | $ 11.6 | |||
Operating leases, rent expense | $ 12.3 | $ 12.3 | ||
Weighted average remaining lease term | 4 years 8 months 16 days | 5 years 3 months 4 days | ||
Weighted average discount rate | 6.47% | 6.25% | ||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining term | 1 year | |||
Interest rate | 4.30% | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Remaining term | 6 years | |||
Interest rate | 8.70% |
Lease Obligations - Maturities
Lease Obligations - Maturities of Lease Obligations (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 12,708 |
2021 | 10,911 |
2022 | 10,718 |
2023 | 9,258 |
2024 | 5,109 |
Thereafter | 4,022 |
Total lease payments | 52,726 |
Less imputed interest | (10,838) |
Total | 41,888 |
Finance Leases | |
2020 | 1,254 |
2021 | 756 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total lease payments | 2,010 |
Less imputed interest | (141) |
Total | 1,869 |
Total | |
2020 | 13,962 |
2021 | 11,667 |
2022 | 10,718 |
2023 | 9,258 |
2024 | 5,109 |
Thereafter | 4,022 |
Total lease payments | 54,736 |
Less imputed interest | 10,979 |
Total | $ 43,757 |
Lease Obligations - Cash Flow I
Lease Obligations - Cash Flow Information Related to Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating leases | $ 12,284 | $ 12,914 |
Equipment finance leases | $ 1,069 | $ 638 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Carrying value of long-term debt and lease obligations | $ 123.4 | $ 124.7 |
Fair value of long-term debt | $ 116.6 | $ 120.7 |
Benefit Plans (Details)
Benefit Plans (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)yr | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Retirement Benefits [Abstract] | |||
401(k) retirement savings plan, minimum age of employee | yr | 18 | ||
401(k) retirement savings plan, maximum percentage of employee contributions | 90.00% | ||
401(k) retirement savings plan, employer matching contribution percentage | 50.00% | ||
401(k) retirement savings plan, employer matching contribution, percentage of contribution | 6.00% | ||
401(k) retirement savings plan, employer matching contribution, percentage of compensation | 3.00% | ||
Company contributions to benefit plans | $ | $ 0.9 | $ 0.9 | $ 0.8 |
Selected Quarterly Informatio_3
Selected Quarterly Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | $ 42,709 | $ 53,239 | $ 41,775 | $ 36,956 | $ 74,594 | $ 47,200 | $ 24,743 | $ 33,508 | $ 174,679 | $ 180,045 | $ 197,554 |
Gross profit (loss) | 5,239 | 25,288 | 19,583 | 9,912 | 37,809 | 16,475 | (1,517) | 6,853 | 60,022 | 59,620 | 75,639 |
Income (loss) from operations | (9,827) | 3,858 | (2,553) | (15,937) | (16,661) | (2,452) | (22,519) | (12,640) | (24,459) | (54,272) | (8,699) |
Interest expense, net | (3,696) | (3,155) | (3,111) | (3,112) | (3,203) | (3,022) | (2,911) | (3,836) | (13,074) | (12,972) | (16,709) |
Other expense, net | (679) | (242) | 96 | (792) | 180 | 91 | 84 | (791) | (1,617) | (436) | (3,945) |
Income tax expense (benefit) | 148 | 3,790 | 2,719 | 1,407 | (587) | 2,079 | 154 | 1,072 | 8,064 | 2,718 | 24 |
Less: Net income attributable to noncontrolling interests | (144) | (394) | (335) | (112) | (246) | (74) | (366) | (87) | (985) | (773) | (865) |
Net loss applicable to ION | $ (14,494) | $ (3,723) | $ (8,622) | $ (21,360) | $ (19,343) | $ (7,536) | $ (25,866) | $ (18,426) | $ (48,199) | $ (71,171) | $ (30,242) |
Net loss per share: | |||||||||||
Basic (usd per share) | $ (1.02) | $ (0.26) | $ (0.61) | $ (1.52) | $ (1.38) | $ (0.54) | $ (1.86) | $ (1.44) | $ (3.41) | $ (5.20) | $ (2.55) |
Diluted (usd per share) | $ (1.02) | $ (0.26) | $ (0.61) | $ (1.52) | $ (1.38) | $ (0.54) | $ (1.86) | $ (1.44) | $ (3.41) | $ (5.20) | $ (2.55) |
Service | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | $ 30,755 | $ 41,990 | $ 30,407 | $ 28,128 | $ 61,095 | $ 37,105 | $ 15,752 | $ 25,086 | $ 131,280 | $ 139,038 | $ 159,410 |
Product | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net revenues | $ 11,954 | $ 11,249 | $ 11,368 | $ 8,828 | $ 13,499 | $ 10,095 | $ 8,991 | $ 8,422 | $ 43,399 | $ 41,007 | $ 38,144 |
Certain Relationships and Rel_2
Certain Relationships and Related Party Transactions (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)ft² | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
INOVA | |||
Related Party Transaction [Line Items] | |||
Related party transaction, revenues from transactions with related party | $ 500,000 | $ 0 | $ 0 |
Majority Shareholder | |||
Related Party Transaction [Line Items] | |||
Related party transaction, revenues from transactions with related party | 2,200,000 | 4,900,000 | 4,400,000 |
Receivables due from BGP | $ 1,500,000 | 1,600,000 | |
Company's outstanding common stock owned by related parties | 10.50% | ||
Board of Directors Chairman | |||
Related Party Transaction [Line Items] | |||
Company's outstanding common stock owned by related parties | 9.10% | ||
Area of office space subleased (sqft) | ft² | 47,800 | ||
Board of Directors Chairman | Manufacturing facility | |||
Related Party Transaction [Line Items] | |||
Payments for continued services agreement | $ 700,000 | $ 400,000 | $ 200,000 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||||
Cash and cash equivalents | $ 33,065 | $ 33,551 | $ 52,056 | |
Total cash, cash equivalents, and restricted cash shown in consolidated statements of cash flows | 33,118 | 33,854 | 52,419 | $ 53,433 |
Accounts receivable, net | 29,548 | 26,128 | ||
Unbilled receivables | 11,815 | 44,032 | ||
Inventories, net | 12,187 | 14,130 | ||
Prepaid expenses and other current assets | 6,012 | 7,782 | ||
Total current assets | 92,627 | 125,623 | ||
Deferred income tax asset | 8,734 | 7,191 | ||
Property, plant and equipment, net | 13,188 | |||
Property, plant and equipment, net | 13,041 | |||
Multi-client data library, net | 60,384 | 73,544 | ||
Investment in subsidiaries | 0 | 0 | ||
Goodwill | 23,585 | 22,915 | 24,089 | |
Intercompany receivables | 0 | 0 | ||
Right-of-use assets | 32,546 | 47,803 | ||
Other assets | 2,130 | 2,435 | ||
Total assets | 233,194 | 292,552 | ||
Deferred income tax asset | ||||
Current maturities of long-term debt | 2,107 | 2,228 | ||
Accounts payable | 49,316 | 34,913 | ||
Accrued expenses | 30,328 | 31,411 | ||
Accrued multi-client data library royalties | 18,831 | 29,256 | ||
Deferred revenue | 4,551 | 7,710 | ||
Current maturities of operating lease liabilities | 11,055 | 12,214 | ||
Total current liabilities | 116,188 | 117,732 | ||
Long-term debt, net of current maturities | 119,352 | 119,513 | ||
Operating lease liabilities, net of current maturities | 30,833 | 45,592 | ||
Intercompany payables | 0 | 0 | ||
Other long-term liabilities | 1,453 | 1,891 | ||
Total liabilities | 267,826 | 284,728 | ||
Equity: | ||||
Common stock | 142 | 140 | ||
Additional paid-in capital | 956,647 | 952,626 | ||
Accumulated earnings (deficit) | (974,291) | (926,092) | ||
Accumulated other comprehensive income (loss) | (19,318) | (20,442) | ||
Due from ION Geophysical Corporation | 0 | 0 | ||
Total stockholders’ (deficit) equity | (36,820) | 6,232 | ||
Noncontrolling interests | 2,188 | 1,592 | ||
Total (deficit) equity | (34,632) | 7,824 | 30,806 | 53,398 |
Total liabilities and (deficit) equity | 233,194 | 292,552 | ||
Reportable Legal Entities | ION Geophysical Corporation | ||||
Current assets: | ||||
Cash and cash equivalents | 8,426 | 13,782 | 39,344 | |
Total cash, cash equivalents, and restricted cash shown in consolidated statements of cash flows | 8,479 | 14,085 | 39,707 | 23,823 |
Accounts receivable, net | 8 | 8 | ||
Unbilled receivables | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Prepaid expenses and other current assets | 3,292 | 3,891 | ||
Total current assets | 11,726 | 17,681 | ||
Deferred income tax asset | 402 | 805 | ||
Property, plant and equipment, net | 786 | |||
Property, plant and equipment, net | 489 | |||
Multi-client data library, net | 0 | 0 | ||
Investment in subsidiaries | 841,522 | 836,002 | ||
Goodwill | 0 | 0 | ||
Intercompany receivables | 0 | 0 | ||
Right-of-use assets | 11,934 | 18,513 | ||
Other assets | 1,171 | 1,723 | ||
Total assets | 867,541 | 875,213 | ||
Deferred income tax asset | ||||
Current maturities of long-term debt | 972 | 1,159 | ||
Accounts payable | 2,259 | 2,407 | ||
Accrued expenses | 9,933 | 7,011 | ||
Accrued multi-client data library royalties | 0 | 0 | ||
Deferred revenue | 0 | 0 | ||
Current maturities of operating lease liabilities | 4,429 | 5,155 | ||
Total current liabilities | 17,593 | 15,732 | ||
Long-term debt, net of current maturities | 118,618 | 117,644 | ||
Operating lease liabilities, net of current maturities | 11,208 | 17,841 | ||
Intercompany payables | 755,524 | 716,051 | ||
Other long-term liabilities | 1,418 | 1,713 | ||
Total liabilities | 904,361 | 868,981 | ||
Equity: | ||||
Common stock | 142 | 140 | ||
Additional paid-in capital | 956,647 | 952,626 | ||
Accumulated earnings (deficit) | (974,291) | (926,092) | ||
Accumulated other comprehensive income (loss) | (19,318) | (20,442) | ||
Due from ION Geophysical Corporation | 0 | 0 | ||
Total stockholders’ (deficit) equity | (36,820) | 6,232 | ||
Noncontrolling interests | 0 | 0 | ||
Total (deficit) equity | (36,820) | 6,232 | ||
Total liabilities and (deficit) equity | 867,541 | 875,213 | ||
Reportable Legal Entities | The Guarantors | ||||
Current assets: | ||||
Cash and cash equivalents | 26 | 47 | 66 | |
Total cash, cash equivalents, and restricted cash shown in consolidated statements of cash flows | 26 | 47 | 66 | 215 |
Accounts receivable, net | 19,493 | 17,349 | ||
Unbilled receivables | 7,314 | 12,697 | ||
Inventories, net | 6,902 | 8,721 | ||
Prepaid expenses and other current assets | 1,513 | 1,325 | ||
Total current assets | 35,248 | 40,139 | ||
Deferred income tax asset | 8,417 | 6,261 | ||
Property, plant and equipment, net | 8,112 | |||
Property, plant and equipment, net | 8,922 | |||
Multi-client data library, net | 54,479 | 70,380 | ||
Investment in subsidiaries | 279,327 | 247,359 | ||
Goodwill | 0 | 0 | ||
Intercompany receivables | 287,692 | 305,623 | ||
Right-of-use assets | 15,802 | 21,350 | ||
Other assets | 905 | 643 | ||
Total assets | 689,982 | 700,677 | ||
Deferred income tax asset | ||||
Current maturities of long-term debt | 1,135 | 1,069 | ||
Accounts payable | 44,641 | 29,602 | ||
Accrued expenses | 9,982 | 10,036 | ||
Accrued multi-client data library royalties | 18,616 | 29,040 | ||
Deferred revenue | 3,465 | 6,515 | ||
Current maturities of operating lease liabilities | 5,469 | 5,633 | ||
Total current liabilities | 83,308 | 81,895 | ||
Long-term debt, net of current maturities | 734 | 1,869 | ||
Operating lease liabilities, net of current maturities | 15,346 | 21,237 | ||
Intercompany payables | 0 | 0 | ||
Other long-term liabilities | 35 | 178 | ||
Total liabilities | 99,423 | 105,179 | ||
Equity: | ||||
Common stock | 290,460 | 290,460 | ||
Additional paid-in capital | 180,700 | 180,700 | ||
Accumulated earnings (deficit) | 396,793 | 390,691 | ||
Accumulated other comprehensive income (loss) | 4,281 | 4,324 | ||
Due from ION Geophysical Corporation | (281,675) | (270,677) | ||
Total stockholders’ (deficit) equity | 590,559 | 595,498 | ||
Noncontrolling interests | 0 | 0 | ||
Total (deficit) equity | 590,559 | 595,498 | ||
Total liabilities and (deficit) equity | 689,982 | 700,677 | ||
Reportable Legal Entities | All Other Subsidiaries | ||||
Current assets: | ||||
Cash and cash equivalents | 24,613 | 19,722 | 12,646 | |
Total cash, cash equivalents, and restricted cash shown in consolidated statements of cash flows | 24,613 | 19,722 | $ 12,646 | $ 29,395 |
Accounts receivable, net | 10,047 | 8,771 | ||
Unbilled receivables | 4,501 | 31,335 | ||
Inventories, net | 5,285 | 5,409 | ||
Prepaid expenses and other current assets | 1,207 | 2,566 | ||
Total current assets | 45,653 | 67,803 | ||
Deferred income tax asset | (85) | 125 | ||
Property, plant and equipment, net | 4,290 | |||
Property, plant and equipment, net | 3,630 | |||
Multi-client data library, net | 5,905 | 3,164 | ||
Investment in subsidiaries | 0 | 0 | ||
Goodwill | 23,585 | 22,915 | ||
Intercompany receivables | 99,884 | 60,255 | ||
Right-of-use assets | 4,810 | 7,940 | ||
Other assets | 54 | 69 | ||
Total assets | 184,096 | 165,901 | ||
Deferred income tax asset | ||||
Current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 2,416 | 2,904 | ||
Accrued expenses | 10,413 | 14,364 | ||
Accrued multi-client data library royalties | 215 | 216 | ||
Deferred revenue | 1,086 | 1,195 | ||
Current maturities of operating lease liabilities | 1,157 | 1,426 | ||
Total current liabilities | 15,287 | 20,105 | ||
Long-term debt, net of current maturities | 0 | 0 | ||
Operating lease liabilities, net of current maturities | 4,279 | 6,514 | ||
Intercompany payables | 0 | 0 | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | 19,566 | 26,619 | ||
Equity: | ||||
Common stock | 47,776 | 47,776 | ||
Additional paid-in capital | 203,909 | 203,908 | ||
Accumulated earnings (deficit) | 18,837 | (12,475) | ||
Accumulated other comprehensive income (loss) | (21,907) | (22,023) | ||
Due from ION Geophysical Corporation | (86,273) | (79,496) | ||
Total stockholders’ (deficit) equity | 162,342 | 137,690 | ||
Noncontrolling interests | 2,188 | 1,592 | ||
Total (deficit) equity | 164,530 | 139,282 | ||
Total liabilities and (deficit) equity | 184,096 | 165,901 | ||
Consolidating Adjustments | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | |||
Total cash, cash equivalents, and restricted cash shown in consolidated statements of cash flows | 0 | |||
Accounts receivable, net | 0 | 0 | ||
Unbilled receivables | 0 | 0 | ||
Inventories, net | 0 | 0 | ||
Prepaid expenses and other current assets | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Deferred income tax asset | 0 | 0 | ||
Property, plant and equipment, net | 0 | |||
Property, plant and equipment, net | 0 | |||
Multi-client data library, net | 0 | 0 | ||
Investment in subsidiaries | (1,120,849) | (1,083,361) | ||
Goodwill | 0 | 0 | ||
Intercompany receivables | (387,576) | (365,878) | ||
Right-of-use assets | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets | (1,508,425) | (1,449,239) | ||
Deferred income tax asset | ||||
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 | ||
Current maturities of operating lease liabilities | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Long-term debt, net of current maturities | 0 | 0 | ||
Operating lease liabilities, net of current maturities | 0 | 0 | ||
Intercompany payables | (755,524) | (716,051) | ||
Other long-term liabilities | 0 | |||
Total liabilities | (755,524) | (716,051) | ||
Equity: | ||||
Common stock | (338,236) | (338,236) | ||
Additional paid-in capital | (384,609) | (384,608) | ||
Accumulated earnings (deficit) | (415,630) | (378,216) | ||
Accumulated other comprehensive income (loss) | 17,626 | 17,699 | ||
Due from ION Geophysical Corporation | 367,948 | 350,173 | ||
Total stockholders’ (deficit) equity | (752,901) | (733,188) | ||
Noncontrolling interests | 0 | 0 | ||
Total (deficit) equity | (752,901) | (733,188) | ||
Total liabilities and (deficit) equity | $ (1,508,425) | $ (1,449,239) |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Information - Condensed Consolidating Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Total net revenues | $ 42,709 | $ 53,239 | $ 41,775 | $ 36,956 | $ 74,594 | $ 47,200 | $ 24,743 | $ 33,508 | $ 174,679 | $ 180,045 | $ 197,554 |
Cost of goods sold | 114,657 | 120,425 | 121,915 | ||||||||
Gross profit | 5,239 | 25,288 | 19,583 | 9,912 | 37,809 | 16,475 | (1,517) | 6,853 | 60,022 | 59,620 | 75,639 |
Total operating expenses | 84,481 | 113,892 | 84,338 | ||||||||
Income (loss) from operations | (9,827) | 3,858 | (2,553) | (15,937) | (16,661) | (2,452) | (22,519) | (12,640) | (24,459) | (54,272) | (8,699) |
Interest expense, net | (3,696) | (3,155) | (3,111) | (3,112) | (3,203) | (3,022) | (2,911) | (3,836) | (13,074) | (12,972) | (16,709) |
Intercompany interest, net | 0 | 0 | 0 | ||||||||
Equity in earnings (losses) of investments | 0 | 0 | 0 | ||||||||
Other expense, net | (679) | (242) | 96 | (792) | 180 | 91 | 84 | (791) | (1,617) | (436) | (3,945) |
Loss before income taxes | (39,150) | (67,680) | (29,353) | ||||||||
Income tax expense (benefit) | 148 | 3,790 | 2,719 | 1,407 | (587) | 2,079 | 154 | 1,072 | 8,064 | 2,718 | 24 |
Net income (loss) | (47,214) | (70,398) | (29,377) | ||||||||
Less: Net income attributable to noncontrolling interests | (144) | (394) | (335) | (112) | (246) | (74) | (366) | (87) | (985) | (773) | (865) |
Net loss attributable to ION | $ (14,494) | $ (3,723) | $ (8,622) | $ (21,360) | $ (19,343) | $ (7,536) | $ (25,866) | $ (18,426) | (48,199) | (71,171) | (30,242) |
Comprehensive net income (loss) | (46,090) | (71,961) | (26,508) | ||||||||
Comprehensive income attributable to noncontrolling interests | (985) | (773) | (865) | ||||||||
Comprehensive net loss attributable to ION | (47,075) | (72,734) | (27,373) | ||||||||
Reportable Legal Entities | ION Geophysical Corporation | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Total net revenues | 0 | 0 | 0 | ||||||||
Cost of goods sold | 0 | 0 | 0 | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Total operating expenses | 37,293 | 32,888 | 39,000 | ||||||||
Income (loss) from operations | (37,293) | (32,888) | (39,000) | ||||||||
Interest expense, net | (12,827) | (13,010) | (16,729) | ||||||||
Intercompany interest, net | 513 | 1,124 | 1,084 | ||||||||
Equity in earnings (losses) of investments | 1,464 | (26,446) | 27,696 | ||||||||
Other expense, net | (12) | (196) | (4,610) | ||||||||
Loss before income taxes | (48,155) | (71,416) | (31,559) | ||||||||
Income tax expense (benefit) | 44 | (245) | (1,317) | ||||||||
Net income (loss) | (48,199) | (71,171) | (30,242) | ||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net loss attributable to ION | (48,199) | (71,171) | (30,242) | ||||||||
Comprehensive net income (loss) | (47,075) | (72,734) | (27,373) | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive net loss attributable to ION | (47,075) | (72,734) | (27,373) | ||||||||
Reportable Legal Entities | The Guarantors | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Total net revenues | 90,526 | 96,649 | 148,590 | ||||||||
Cost of goods sold | 86,531 | 85,186 | 90,754 | ||||||||
Gross profit | 3,995 | 11,463 | 57,836 | ||||||||
Total operating expenses | 32,435 | 29,235 | 28,020 | ||||||||
Income (loss) from operations | (28,440) | (17,772) | 29,816 | ||||||||
Interest expense, net | (638) | (136) | (107) | ||||||||
Intercompany interest, net | (1,423) | (12,137) | (6,613) | ||||||||
Equity in earnings (losses) of investments | 35,950 | 37,219 | 67,290 | ||||||||
Other expense, net | (407) | 116 | (407) | ||||||||
Loss before income taxes | 5,042 | 7,290 | 89,979 | ||||||||
Income tax expense (benefit) | (1,060) | (6,711) | (1,427) | ||||||||
Net income (loss) | 6,102 | 14,001 | 91,406 | ||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net loss attributable to ION | 6,102 | 14,001 | 91,406 | ||||||||
Comprehensive net income (loss) | 6,059 | 13,953 | 91,358 | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive net loss attributable to ION | 6,059 | 13,953 | 91,358 | ||||||||
Reportable Legal Entities | All Other Subsidiaries | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Total net revenues | 84,153 | 83,396 | 48,964 | ||||||||
Cost of goods sold | 28,126 | 35,239 | 31,161 | ||||||||
Gross profit | 56,027 | 48,157 | 17,803 | ||||||||
Total operating expenses | 14,753 | 51,769 | 17,318 | ||||||||
Income (loss) from operations | 41,274 | (3,612) | 485 | ||||||||
Interest expense, net | 391 | 174 | 127 | ||||||||
Intercompany interest, net | 910 | 11,013 | 5,529 | ||||||||
Equity in earnings (losses) of investments | 0 | 0 | 0 | ||||||||
Other expense, net | (1,198) | (356) | 1,072 | ||||||||
Loss before income taxes | 41,377 | 7,219 | 7,213 | ||||||||
Income tax expense (benefit) | 9,080 | 9,674 | 2,768 | ||||||||
Net income (loss) | 32,297 | (2,455) | 4,445 | ||||||||
Less: Net income attributable to noncontrolling interests | (985) | (773) | (865) | ||||||||
Net loss attributable to ION | 31,312 | (3,228) | 3,580 | ||||||||
Comprehensive net income (loss) | 32,413 | (4,797) | 6,550 | ||||||||
Comprehensive income attributable to noncontrolling interests | (985) | (773) | (865) | ||||||||
Comprehensive net loss attributable to ION | 31,428 | (5,570) | 5,685 | ||||||||
Consolidating Adjustments | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Total net revenues | 0 | 0 | 0 | ||||||||
Cost of goods sold | 0 | 0 | 0 | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Total operating expenses | 0 | 0 | 0 | ||||||||
Income (loss) from operations | 0 | 0 | 0 | ||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||
Intercompany interest, net | 0 | 0 | 0 | ||||||||
Equity in earnings (losses) of investments | (37,414) | (10,773) | (94,986) | ||||||||
Other expense, net | 0 | 0 | 0 | ||||||||
Loss before income taxes | (37,414) | (10,773) | (94,986) | ||||||||
Income tax expense (benefit) | 0 | 0 | |||||||||
Net income (loss) | (37,414) | (10,773) | (94,986) | ||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net loss attributable to ION | (37,414) | (10,773) | (94,986) | ||||||||
Comprehensive net income (loss) | (37,487) | (8,383) | (97,043) | ||||||||
Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Comprehensive net loss attributable to ION | $ (37,487) | $ (8,383) | $ (97,043) |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Informatin - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands | Feb. 21, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash flows from operating activities: | ||||
Net cash provided by (used in) operating activities | $ 34,150 | $ 7,098 | $ 27,612 | |
Cash flows from investing activities: | ||||
Investment in multi-client data library | (28,804) | (28,276) | (23,710) | |
Purchase of property, plant and equipment | (2,411) | (1,514) | (1,063) | |
Proceeds from sale of cost method investments | 0 | |||
Net cash used in investing activities | (31,215) | (29,790) | (24,773) | |
Cash flows from financing activities: | ||||
Borrowings under revolving line of credit | 40,000 | 0 | 0 | |
Repayments under revolving line of credit | (40,000) | (10,000) | ||
Payments on notes payable and long-term debt | (2,553) | (30,807) | (4,816) | |
Cost associated with issuance of debt | 0 | (1,247) | (53) | |
Intercompany lending | 0 | 0 | 0 | |
Net proceeds from issuance of stocks | $ 47,000 | 0 | 46,999 | 0 |
Proceeds from employee stock purchases and exercise of stock options | 141 | 214 | 1,619 | |
Other financing activities | (1,134) | (1,351) | (343) | |
Net cash provided by (used in) financing activities | (3,546) | 3,808 | (3,593) | |
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash | 319 | (260) | ||
Net decrease in cash, cash equivalents and restricted cash | (736) | (18,565) | (1,014) | |
Cash, cash equivalents and restricted cash at beginning of period | 33,854 | 52,419 | 53,433 | |
Cash, cash equivalents and restricted cash at end of period | 33,118 | 33,854 | 52,419 | |
Reportable Legal Entities | ION Geophysical Corporation | ||||
Cash flows from operating activities: | ||||
Net cash provided by (used in) operating activities | 10,342 | (37,659) | (22,315) | |
Cash flows from investing activities: | ||||
Investment in multi-client data library | 0 | 0 | 0 | |
Purchase of property, plant and equipment | (375) | (392) | (165) | |
Proceeds from sale of cost method investments | 0 | |||
Net cash used in investing activities | (375) | (392) | (165) | |
Cash flows from financing activities: | ||||
Borrowings under revolving line of credit | 40,000 | |||
Repayments under revolving line of credit | (40,000) | (10,000) | ||
Payments on notes payable and long-term debt | (1,069) | (30,169) | (1,591) | |
Cost associated with issuance of debt | (1,247) | (53) | ||
Intercompany lending | 13,511 | (7,983) | (38,732) | |
Net proceeds from issuance of stocks | 46,999 | |||
Proceeds from employee stock purchases and exercise of stock options | 141 | 214 | 1,619 | |
Other financing activities | (1,134) | (1,351) | (343) | |
Net cash provided by (used in) financing activities | (15,573) | 12,429 | 38,364 | |
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash | 0 | 0 | 0 | |
Net decrease in cash, cash equivalents and restricted cash | (5,606) | (25,622) | 15,884 | |
Cash, cash equivalents and restricted cash at beginning of period | 14,085 | 39,707 | 23,823 | |
Cash, cash equivalents and restricted cash at end of period | 8,479 | 14,085 | 39,707 | |
Reportable Legal Entities | The Guarantors | ||||
Cash flows from operating activities: | ||||
Net cash provided by (used in) operating activities | 14,642 | 39,407 | 73,154 | |
Cash flows from investing activities: | ||||
Investment in multi-client data library | (18,765) | (25,307) | (23,710) | |
Purchase of property, plant and equipment | (909) | (959) | (817) | |
Proceeds from sale of cost method investments | 0 | |||
Net cash used in investing activities | (19,674) | (26,266) | (24,527) | |
Cash flows from financing activities: | ||||
Borrowings under revolving line of credit | 0 | |||
Repayments under revolving line of credit | 0 | 0 | ||
Payments on notes payable and long-term debt | (1,484) | (638) | (3,167) | |
Cost associated with issuance of debt | 0 | 0 | ||
Intercompany lending | (6,495) | 12,522 | 45,609 | |
Net proceeds from issuance of stocks | 0 | |||
Proceeds from employee stock purchases and exercise of stock options | 0 | 0 | 0 | |
Other financing activities | 0 | 0 | 0 | |
Net cash provided by (used in) financing activities | 5,011 | (13,160) | (48,776) | |
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash | 0 | 0 | 0 | |
Net decrease in cash, cash equivalents and restricted cash | (21) | (19) | (149) | |
Cash, cash equivalents and restricted cash at beginning of period | 47 | 66 | 215 | |
Cash, cash equivalents and restricted cash at end of period | 26 | 47 | 66 | |
Reportable Legal Entities | All Other Subsidiaries | ||||
Cash flows from operating activities: | ||||
Net cash provided by (used in) operating activities | 9,166 | 5,350 | (23,227) | |
Cash flows from investing activities: | ||||
Investment in multi-client data library | (10,039) | (2,969) | 0 | |
Purchase of property, plant and equipment | (1,127) | (163) | (81) | |
Proceeds from sale of cost method investments | 0 | |||
Net cash used in investing activities | (11,166) | (3,132) | (81) | |
Cash flows from financing activities: | ||||
Borrowings under revolving line of credit | 0 | |||
Repayments under revolving line of credit | 0 | 0 | ||
Payments on notes payable and long-term debt | 0 | 0 | (58) | |
Cost associated with issuance of debt | 0 | 0 | ||
Intercompany lending | (7,016) | (4,539) | (6,877) | |
Net proceeds from issuance of stocks | 0 | |||
Proceeds from employee stock purchases and exercise of stock options | 0 | 0 | 0 | |
Other financing activities | 0 | 0 | 0 | |
Net cash provided by (used in) financing activities | 7,016 | 4,539 | 6,819 | |
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash | (125) | 319 | (260) | |
Net decrease in cash, cash equivalents and restricted cash | 4,891 | 7,076 | (16,749) | |
Cash, cash equivalents and restricted cash at beginning of period | 19,722 | 12,646 | 29,395 | |
Cash, cash equivalents and restricted cash at end of period | 24,613 | $ 19,722 | $ 12,646 | |
Consolidating Adjustments | ||||
Cash flows from financing activities: | ||||
Cash, cash equivalents and restricted cash at end of period | $ 0 |
Condensed Consolidating Finan_6
Condensed Consolidating Financial Information - Cash Flow, Restricted Cash Reconciliation (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Restricted Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 33,065 | $ 33,551 | $ 52,056 | |
Total cash, cash equivalents, and restricted cash shown in consolidated statements of cash flows | 33,118 | 33,854 | 52,419 | $ 53,433 |
Prepaid expenses and other current assets | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Restricted cash | 53 | 0 | 60 | |
Other long-term assets | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Restricted cash | 0 | 303 | 303 | |
Reportable Legal Entities | ION Geophysical Corporation | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | 8,426 | 13,782 | 39,344 | |
Total cash, cash equivalents, and restricted cash shown in consolidated statements of cash flows | 8,479 | 14,085 | 39,707 | 23,823 |
Reportable Legal Entities | ION Geophysical Corporation | Prepaid expenses and other current assets | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Restricted cash | 53 | 60 | ||
Reportable Legal Entities | ION Geophysical Corporation | Other long-term assets | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Restricted cash | 303 | 303 | ||
Reportable Legal Entities | The Guarantors | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | 26 | 47 | 66 | |
Total cash, cash equivalents, and restricted cash shown in consolidated statements of cash flows | 26 | 47 | 66 | 215 |
Reportable Legal Entities | The Guarantors | Prepaid expenses and other current assets | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Restricted cash | 0 | 0 | ||
Reportable Legal Entities | The Guarantors | Other long-term assets | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Restricted cash | 0 | 0 | ||
Reportable Legal Entities | All Other Subsidiaries | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | 24,613 | 19,722 | 12,646 | |
Total cash, cash equivalents, and restricted cash shown in consolidated statements of cash flows | 24,613 | 19,722 | 12,646 | $ 29,395 |
Reportable Legal Entities | All Other Subsidiaries | Prepaid expenses and other current assets | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Restricted cash | 0 | 0 | ||
Reportable Legal Entities | All Other Subsidiaries | Other long-term assets | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Restricted cash | 0 | $ 0 | ||
Consolidating Adjustments | ||||
Restricted Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 0 | |||
Total cash, cash equivalents, and restricted cash shown in consolidated statements of cash flows | $ 0 |
VALUATION AND QUALIFYING ACCO_2
VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowances for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 430 | $ 572 | $ 1,443 |
Charged (Credited) to Costs and Expenses | 0 | 222 | 949 |
Deductions | (430) | (364) | (1,820) |
Balance at End of Year | 0 | 430 | 572 |
Allowances for doubtful notes receivable | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 4,000 | 4,000 | 4,000 |
Charged (Credited) to Costs and Expenses | 0 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Balance at End of Year | 4,000 | 4,000 | 4,000 |
Valuation allowance on deferred tax assets | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 160,505 | 153,463 | 217,589 |
Charged (Credited) to Costs and Expenses | 10,432 | 7,042 | (64,126) |
Deductions | 0 | 0 | 0 |
Balance at End of Year | 170,937 | 160,505 | 153,463 |
Excess and obsolete inventory | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 15,024 | 15,039 | 15,049 |
Charged (Credited) to Costs and Expenses | 517 | 665 | 398 |
Deductions | (2,208) | (680) | (408) |
Balance at End of Year | $ 13,333 | $ 15,024 | $ 15,039 |