Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 23, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | ION GEOPHYSICAL CORP | |
Entity Central Index Key | 866,609 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 164,790,322 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Current assets: | ||||
Cash and cash equivalents | $ 88,239 | $ 173,608 | $ 129,847 | $ 148,056 |
Accounts receivable, net | 21,587 | 114,325 | ||
Unbilled receivables | 32,387 | 22,599 | ||
Inventories | 34,683 | 51,162 | ||
Prepaid expenses and other current assets | 10,124 | 13,662 | ||
Total current assets | 187,020 | 375,356 | ||
Deferred income tax asset | 5,706 | 8,604 | ||
Property, plant, equipment and seismic rental equipment, net | 77,081 | 69,840 | ||
Multi-client data library, net | 135,907 | 118,669 | ||
Goodwill | 26,809 | 27,388 | ||
Intangible assets, net | 5,306 | 6,788 | ||
Other assets | 9,380 | 10,612 | ||
Total assets | 447,209 | 617,257 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 6,612 | 7,649 | ||
Accounts payable | 27,950 | 36,863 | ||
Accrued expenses | 54,302 | 65,264 | ||
Accrued multi-client data library royalties | 12,443 | 35,219 | ||
Deferred revenue | 5,575 | 8,262 | ||
Total current liabilities | 106,882 | 153,257 | ||
Long-term debt, net of current maturities | 179,666 | 182,945 | ||
Other long-term liabilities | 39,830 | 143,804 | ||
Total liabilities | 326,378 | 480,006 | ||
Redeemable noncontrolling interest | 1,200 | 1,539 | ||
Equity: | ||||
Common stock, $0.01 par value; authorized 200,000,000 shares; outstanding 164,790,322 and 164,484,095 shares at September 30, 2015 and December 31, 2014, respectively, net of treasury stock | 1,648 | 1,645 | ||
Additional paid-in capital | 892,007 | 887,749 | ||
Accumulated deficit | (753,987) | (734,409) | ||
Accumulated other comprehensive loss | (13,564) | (12,807) | ||
Treasury stock, at cost, 849,539 shares | (6,565) | (6,565) | ||
Total stockholders' equity | 119,539 | 135,613 | ||
Noncontrolling interest | 92 | 99 | ||
Total equity | 119,631 | 135,712 | ||
Total liabilities and equity | $ 447,209 | $ 617,257 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares outstanding | 164,790,322 | 164,484,095 |
Treasury stock, shares | 849,539 | 849,539 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement [Abstract] | ||||
Service revenues | $ 53,515 | $ 71,923 | $ 96,918 | $ 272,386 |
Product revenues | 13,159 | 34,617 | 47,129 | 100,332 |
Total net revenues | 66,674 | 106,540 | 144,047 | 372,718 |
Cost of services | 47,883 | 60,285 | 132,234 | 200,697 |
Cost of products | 7,683 | 17,032 | 26,628 | 47,716 |
Gross profit (loss) | 11,108 | 29,223 | (14,815) | 124,305 |
Operating expenses: | ||||
Research, development and engineering | 6,537 | 10,910 | 21,496 | 30,254 |
Marketing and sales | 6,904 | 8,480 | 23,375 | 27,610 |
General, administrative and other operating expenses | 10,541 | 15,182 | 40,566 | 48,334 |
Total operating expenses | 23,982 | 34,572 | 85,437 | 106,198 |
Income (loss) from operations | (12,874) | (5,349) | (100,252) | 18,107 |
Interest expense, net | (4,854) | (5,048) | (14,086) | (14,779) |
Equity in losses of investments | 0 | (5,558) | 0 | (9,027) |
Other income (expense), net | (346) | (622) | 98,035 | 73,970 |
Income (loss) before income taxes | (18,074) | (16,577) | (16,303) | 68,271 |
Income tax expense | 2,082 | 8,345 | 3,597 | 14,261 |
Net income (loss) | (20,156) | (24,922) | (19,900) | 54,010 |
Net (income) loss attributable to noncontrolling interests | (227) | 381 | 322 | (1,384) |
Net income (loss) attributable to ION | $ (20,383) | $ (24,541) | $ (19,578) | $ 52,626 |
Net income (loss) per share: | ||||
Basic, in dollars per share | $ (0.12) | $ (0.15) | $ (0.12) | $ 0.32 |
Diluted, in dollars per share | $ (0.12) | $ (0.15) | $ (0.12) | $ 0.32 |
Weighted average number of common shares outstanding: | ||||
Basic, in shares | 164,755 | 164,149 | 164,672 | 164,021 |
Diluted, in shares | 164,755 | 164,149 | 164,672 | 164,326 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (20,156) | $ (24,922) | $ (19,900) | $ 54,010 |
Other comprehensive loss, net of taxes, as appropriate: | ||||
Foreign currency translation adjustments | (1,365) | (2,632) | (757) | 489 |
Equity interest in investees' other comprehensive income (loss) | 0 | 738 | 0 | (1,125) |
Other changes in other comprehensive income | 0 | 28 | 0 | 54 |
Total other comprehensive loss, net of taxes | (1,365) | (1,866) | (757) | (582) |
Comprehensive net income (loss) | (21,521) | (26,788) | (20,657) | 53,428 |
Comprehensive (income) loss attributable to noncontrolling interest | (227) | 381 | 322 | (1,384) |
Comprehensive net income (loss) attributable to ION | $ (21,748) | $ (26,407) | $ (20,335) | $ 52,044 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (19,900) | $ 54,010 |
Adjustments to reconcile net income (loss) to cash (used in) provided by operating activities: | ||
Depreciation and amortization (other than multi-client data library) | 19,660 | 20,989 |
Amortization of multi-client data library | 24,531 | 46,014 |
Stock-based compensation expense | 4,174 | 7,058 |
Reductions of accrual for loss contingency related to legal proceedings | (101,978) | (69,557) |
Equity in losses of investments | 0 | 9,027 |
Gain on sale of Source product line | 0 | (6,522) |
Deferred income taxes | 5,992 | (1,536) |
Change in operating assets and liabilities: | ||
Accounts receivable | 92,424 | 71,540 |
Unbilled receivables | (9,837) | (8,036) |
Inventories | 464 | (4,272) |
Accounts payable, accrued expenses and accrued royalties | (43,676) | (31,324) |
Deferred revenue | (2,576) | (4,153) |
Other assets and liabilities | (5,274) | 3,738 |
Net cash (used in) provided by operating activities | (35,996) | 86,976 |
Cash flows from investing activities: | ||
Cash invested in multi-client data library | (28,152) | (57,340) |
Purchase of property, plant, equipment and seismic rental assets | (17,601) | (6,842) |
Repayment of advance to INOVA Geophysical | 0 | 1,000 |
Net investment in and advances to OceanGeo B.V. prior to its consolidation | 0 | (3,074) |
Net proceeds from sale of Source product line | 0 | 14,394 |
Other investing activities | 1,262 | 928 |
Net cash used in investing activities | (44,491) | (50,934) |
Cash flows from financing activities: | ||
Borrowings under revolving line of credit | 0 | 15,000 |
Payments under revolving line of credit | 0 | (50,000) |
Payments on notes payable and long-term debt | (5,431) | (11,737) |
Costs associated with issuance of debt | (146) | (2,126) |
Acquisition of non-controlling interest | 0 | (6,000) |
Other financing activities | 94 | 423 |
Net cash used in financing activities | (5,483) | (54,440) |
Effect of change in foreign currency exchange rates on cash and cash equivalents | 601 | 189 |
Net decrease in cash and cash equivalents | (85,369) | (18,209) |
Cash and cash equivalents at beginning of period | 173,608 | 148,056 |
Cash and cash equivalents at end of period | $ 88,239 | $ 129,847 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The condensed consolidated balance sheet of ION Geophysical Corporation and its subsidiaries (collectively referred to as the “Company” or “ION,” unless the context otherwise requires) at December 31, 2014 has been derived from the Company’s audited consolidated financial statements at that date. The condensed consolidated balance sheet at September 30, 2015, and the condensed consolidated statements of operations and comprehensive income (loss) for the three and nine months ended September 30, 2015 and 2014 and the condensed consolidated statements of cash flows for the nine months ended September 30, 2015 and 2014, are unaudited. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for the three and nine months ended September 30, 2015 are not necessarily indicative of the operating results for a full year or of future operations. These condensed consolidated financial statements have been prepared using accounting principles generally accepted in the United States for interim financial information and the instructions to Form 10-Q and applicable rules of Regulation S-X of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in annual financial statements presented in accordance with accounting principles generally accepted in the United States have been omitted. The accompanying condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 and Amendment No. 1 thereto on Form 10-K/A, which was filed on April 24, 2015 and contains the separate consolidated financial statements of INOVA Geophysical Equipment Limited (“INOVA Geophysical”) for its fiscal year ended December 31, 2014 . |
Restructurings
Restructurings | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructurings | Restructurings The recent decline in crude oil prices to five -year lows and the depressed level of natural gas prices have negatively impacted the economic outlook of the Company’s exploration and production (“E&P”) company customers, which has also negatively impacted the outlook for the Company’s seismic contractor customers. In response to the decline in crude oil prices, E&P companies have reduced their capital expenditures and shifted their spending from exploration to production-related activities on existing assets. Seismic spending is discretionary; therefore, E&P companies have disproportionately cut their spending on seismic-related services and products. During the first three quarters of 2015, the Company continued its restructuring program by (i) focusing on centralizing the Company’s global data processing capabilities to two core geographical hubs in the U.S. and the U.K., (ii) reducing the Company’s marine repair infrastructure to two locations in the U.S. and U.A.E., and (iii) making further reductions in personnel across all of the Company’s segments in the third quarter 2015 that, combined with reductions starting in December 2014 and continuing through the first nine months of 2015, have reduced the Company’s full-time employee base by approximately 50% . During the nine months ended September 30, 2015 , the Company recognized the following charges and credits (in thousands): Severance Charges (a) Facility Charges (b) Total Cost of goods sold $ 3,981 $ — $ 3,981 Operating expenses 1,910 1,323 3,233 Other (income) expense — 1,618 1,618 Income tax benefit (119 ) (150 ) (269 ) Net income attributable to noncontrolling interest (172 ) — (172 ) Consolidated total $ 5,600 $ 2,791 $ 8,391 (a) Represents severance charges related to 2015 restructurings, a portion of which relates to a noncontrolling interest. (b) Represents facility charges related to 2015 restructurings. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company operates through four business segments – Solutions, Systems, Software and Ocean Bottom Services. The Company measures segment operating results based on income (loss) from operations. In addition, the Company has an equity ownership interest in its INOVA Geophysical joint venture. As of December 31, 2014, the Company wrote down its investment in INOVA Geophysical to zero and has suspended recording its share of losses in the joint venture. If at a future date, the Company’s cumulative share of earnings during the period of suspension becomes greater than its share of losses during the same period, the Company will begin to record its share of earnings in the joint venture as long as its net equity method investment remains greater than zero. The following table is a summary of segment information (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net revenues: Solutions: New Venture $ 26,650 $ 18,446 $ 35,315 $ 76,499 Data Library 15,302 3,262 24,948 30,104 Total multi-client revenues 41,952 21,708 60,263 106,603 Data Processing 10,693 24,151 33,731 91,131 Total $ 52,645 $ 45,859 $ 93,994 $ 197,734 Systems: Towed Streamer $ 4,426 $ 13,666 $ 12,273 $ 35,782 Other 2,864 11,029 15,460 36,166 Total $ 7,290 $ 24,695 $ 27,733 $ 71,948 Software: Software Systems $ 5,869 $ 9,922 $ 19,396 $ 28,384 Services 870 1,088 2,924 3,198 Total $ 6,739 $ 11,010 $ 22,320 $ 31,582 Ocean Bottom Services $ — $ 24,976 $ — $ 71,454 Total $ 66,674 $ 106,540 $ 144,047 $ 372,718 Gross profit (loss): Solutions $ 11,294 $ 5,927 $ (6,954 ) $ 51,207 Systems 1,366 10,123 7,425 31,288 Software 4,399 8,326 14,197 23,388 Ocean Bottom Services (5,951 ) 4,847 (29,483 ) 18,422 Total $ 11,108 $ 29,223 $ (14,815 ) $ 124,305 Gross margin: Solutions 21 % 13 % (7 )% 26 % Systems 19 % 41 % 27 % 43 % Software 65 % 76 % 64 % 74 % Ocean Bottom Services — % 19 % — % 26 % Total 17 % 27 % (10 )% 33 % Income (loss) from operations: Solutions $ 768 $ (5,960 ) $ (40,766 ) $ 11,733 Systems (1,295 ) 2,917 (2,660 ) 9,835 Software 2,444 6,227 7,874 16,985 Ocean Bottom Services (7,289 ) 1,677 (34,856 ) 12,333 Corporate and other (7,502 ) (10,210 ) (29,844 ) (32,779 ) Income (loss) from operations (12,874 ) (5,349 ) (100,252 ) 18,107 Interest expense, net (4,854 ) (5,048 ) (14,086 ) (14,779 ) Equity in losses of investments — (5,558 ) — (9,027 ) Other income (expense), net (346 ) (622 ) 98,035 73,970 Income (loss) before income taxes $ (18,074 ) $ (16,577 ) $ (16,303 ) $ 68,271 |
Long-term Debt
Long-term Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Obligations (in thousands) September 30, 2015 December 31, 2014 Senior secured second-priority notes $ 175,000 $ 175,000 Equipment capital leases 11,278 15,059 Revolving credit facility — — Other debt — 535 Total 186,278 190,594 Current portion of long-term debt and lease obligations (6,612 ) (7,649 ) Non-current portion of long-term debt and lease obligations $ 179,666 $ 182,945 Revolving Credit Facility In August 2014, ION and its material U.S. subsidiaries, ION Exploration Products (U.S.A.), Inc., I/O Marine Systems, Inc. and GX Technology Corporation (collectively, the “ Subsidiary Borrowers ”), entered into a credit facility (the “ Credit Facility ”). For a complete discussion of the terms, available credit and security of this Credit Facility , see Footnote 6 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . On August 4, 2015 , the Company and the Subsidiary Borrowers amended the terms of the Credit Facility pursuant to a First Amendment to Revolving Credit and Security Agreement dated effective as of August 4, 2015 (the “ First Amendment ”). The First Amendment contemplated, among other things, (i) PNC Bank, National Association (“PNC”) becoming the sole lender under the Credit Facility, (ii) the reduction of the maximum amount of the revolving line of credit under the Credit Facility from $80.0 million to $40.0 million , (iii) the elimination of the requirement that the Company not exceed a maximum senior secured leverage ratio, (iv) the amendment of the borrowing base formula under the Credit Facility and (v) the removal of the accordion features under the Credit Facility . For additional information regarding the terms of the First Amendment , see the Company’s Current Report on Form 8-K filed with the SEC on August 6, 2015 . The borrowing base under the First Amendment will increase or decrease monthly using an amended formula based on certain eligible receivables, eligible inventory and other amounts, including a percentage of the net orderly liquidation value of the Company's multi-client data library (not to exceed $15.0 million for the multi-client data library data component). The amended formula also removes the qualified cash component of up to $20.0 million . At September 30, 2015, the borrowing base under the Credit Facility was $40.0 million , and there was no outstanding indebtedness under the Credit Facility. The Credit Facility as amended contains covenants that, among other things, restrict the Company, subject to certain exceptions, from incurring additional indebtedness (including capital lease obligations), repurchasing equity, paying dividends or distributions, granting or incurring additional liens on the Company’s properties, pledging shares of the Company’s subsidiaries, entering into certain merger or other change-in-control transactions, entering into transactions with the Company’s affiliates, making certain sales or other dispositions of the Company’s assets, making certain investments, acquiring other businesses and entering into sale-leaseback transactions with respect to the Company’s property. The Credit Facility, as amended requires that ION and the Subsidiary Borrowers maintain a minimum fixed charge coverage ratio of 1.1 to 1.0 as of the end of each fiscal quarter during the existence of a covenant testing trigger event. The fixed charge coverage ratio is defined as the ratio of (i) ION’s EBITDA, minus unfunded capital expenditures made during the relevant period, minus distributions (including tax distributions) and dividends made during the relevant period, minus cash taxes paid during the relevant period, to (ii) certain debt payments made during the relevant period. A covenant testing trigger event occurs upon (a) the occurrence and continuance of an event of default under the Credit Facility or (b) the failure to maintain a measure of liquidity greater than (i) $5.0 million for five consecutive business days or (ii) $4.0 million on any given business day. Liquidity, as defined in the Credit Facility, is the Company’s excess availability to borrow ( $40.0 million at September 30, 2015) plus the aggregate amount of unrestricted cash held by ION, the Subsidiary Borrowers and their domestic subsidiaries. At September 30, 2015 , the Company was in compliance with all of the covenants under the Credit Facility. The Credit Facility as amended contains customary event of default provisions (including a “change of control” event affecting ION), the occurrence of which could lead to an acceleration of the Company’s obligations under the Credit Facility as amended. Senior Secured Second-Priority Notes In May 2013, the Company sold $175.0 million aggregate principal amount of 8.125% Senior Secured Second-Priority Notes due 2018 (“ Notes ”) in a private offering pursuant to an Indenture dated as of May 13, 2013. The Notes are senior secured second-priority obligations of the Company, are guaranteed by the Company’s material U.S. subsidiaries, GX Technology Corporation, ION Exploration Products (U.S.A.), Inc. and I/O Marine Systems, Inc. (“the Guarantors”), and mature on May 15, 2018. Interest on the Notes accrues at the rate of 8.125% per annum and will be payable semiannually in arrears on May 15 and November 15 of each year during their term. In May 2014, the holders of the Notes exchanged their Notes for a like principal amount of registered Notes with the same terms. For a complete discussion of the terms and security of these Notes , see Footnote 6 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . The Notes contain certain covenants that, among other things, limit or prohibit the Company’s ability and the ability of its restricted subsidiaries to take certain actions or permit certain conditions to exist during the term of the Notes, including among other things, incurring additional indebtedness, creating liens, paying dividends and making other distributions in respect of the Company’s capital stock, redeeming the Company’s capital stock, making investments or certain other restricted payments, selling certain kinds of assets, entering into transactions with affiliates, and effecting mergers or consolidations. These and other restrictive covenants contained in the Indenture are subject to certain exceptions and qualifications. All of the Company’s subsidiaries are currently restricted subsidiaries. As of September 30, 2015 , the Company was in compliance with the covenants on the Notes . On or after May 15, 2015, the Company may on one or more occasions redeem all or a part of the Notes at the redemption prices set forth below, plus accrued and unpaid interest and special interest, if any, on the Notes redeemed during the twelve-month period beginning on May 15th of the years indicated below: Date Percentage 2015 104.063% 2016 102.031% 2017 and thereafter 100.000% |
Net Income (Loss) per Share
Net Income (Loss) per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share | Net Income (Loss) per Share Basic net income (loss) per common share is computed by dividing net income (loss) applicable to common shares by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is determined based on the assumption that dilutive restricted stock and restricted stock unit awards have vested and outstanding dilutive stock options have been exercised and the aggregate proceeds were used to reacquire common stock using the average price of such common stock for the period. The total number of shares issued or reserved for future issuance under outstanding stock options at September 30, 2015 and 2014 was 8,643,375 and 9,111,725 , respectively, and the total number of shares of restricted stock and shares reserved for restricted stock units outstanding at September 30, 2015 and 2014 was 1,363,534 and 1,386,336 , respectively. All outstanding stock options for the three and nine months ended September 30, 2015 were anti-dilutive. The following table summarizes the computation of basic and diluted net income (loss) per common share (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net income (loss) attributable to ION $ (20,383 ) $ (24,541 ) $ (19,578 ) $ 52,626 Weighted average number of common shares outstanding 164,755 164,149 164,672 164,021 Effect of dilutive stock awards — — — 305 Weighted average number of diluted common shares outstanding 164,755 164,149 164,672 164,326 Basic net income (loss) per share $ (0.12 ) $ (0.15 ) $ (0.12 ) $ 0.32 Diluted net income (loss) per share $ (0.12 ) $ (0.15 ) $ (0.12 ) $ 0.32 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company maintains a valuation allowance for substantially all of its deferred tax assets. The valuation allowance is calculated in accordance with the provisions of the Financial Accounting Standards Board’s (“FASB”) Accounting Standard Codification (“ASC”) Topic 740 “Income Taxes,” which requires that a valuation allowance be established or maintained when it is “more likely than not” that all or a portion of deferred tax assets will not be realized. In the event the Company’s expectations of future operating results change, the valuation allowance may need to be adjusted downward. As of September 30, 2015 , the Company has no unreserved U.S. deferred tax assets. The provision for the three months and nine months ended September 30, 2015 has been calculated based on the actual tax expense incurred for those periods. Given the current uncertainty in expected income generated in various foreign jurisdictions, where tax rates can vary greatly, the Company’s actual tax rate is the best estimate of year-to-date tax expense. The Company’s effective tax rates for the three months ended September 30, 2015 and 2014 were (11.5)% and (50.3)% , respectively, and for the nine months ended September 30, 2015 and 2014 were (22.1)% and 20.9% , respectively. The Company’s effective tax rates for the three and nine months ended September 30, 2015 were impacted by the change in valuation allowance related to the reduction of the Company’s legal contingency reserve as well as operating losses for which the Company cannot currently recognize a tax benefit. The Company’s income tax expense for the nine months ended September 30, 2015 of $3.6 million primarily relates to income from the Company’s non-U.S. businesses. This foreign tax expense has not been offset by the tax benefits on losses within the U.S. and other jurisdictions, from which the Company cannot currently benefit; therefore negatively impacting the Company’s effective tax rate. The Company has approximately $1.2 million of unrecognized tax benefits and does not expect to recognize significant increases in unrecognized tax benefits during the next 12-month period. Interest and penalties, if any, related to unrecognized tax benefits are recorded in income tax expense. As of September 30, 2015 , the Company’s U.S. federal tax returns for 2012 and subsequent years remain subject to examination by tax authorities. The Company is no longer subject to U.S. Internal Revenue Service (“IRS”) examination for periods prior to 2012, although carryforward attributes that were generated prior to 2012 may still be adjusted upon examination by the IRS if they either have been or will be used in an open year. In the Company’s foreign tax jurisdictions, tax returns for 2009 and subsequent years generally remain open to examination. |
Litigation
Litigation | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | Litigation WesternGeco In June 2009, WesternGeco L.L.C. (“WesternGeco”) filed a lawsuit against the Company in the United States District Court for the Southern District of Texas, Houston Division. In the lawsuit, styled WesternGeco L.L.C. v. ION Geophysical Corporation , WesternGeco alleged that the Company had infringed several method and apparatus claims contained in four of its United States patents regarding marine seismic streamer steering devices. The trial began in July 2012. A verdict was returned by the jury in August 2012, finding that the Company infringed the claims contained in the four patents by supplying its DigiFIN ® lateral streamer control units and the related software from the United States and awarded WesternGeco the sum of $105.9 million in damages, consisting of $12.5 million in reasonable royalty and $93.4 million in lost profits. In June 2013, the presiding judge entered a Memorandum and Order, ruling that WesternGeco is entitled to be awarded supplemental damages for the additional DigiFIN units that were supplied from the United States before and after the trial that were not included in the jury verdict due to the timing of the trial. In October 2013, the judge entered another Memorandum and Order, ruling on the number of DigiFIN units that are subject to supplemental damages and also ruling that the supplemental damages applicable to the additional units should be calculated by adding together the jury’s previous reasonable royalty and lost profits damages awards per unit, resulting in supplemental damages of $73.1 million . In April 2014, the judge entered another Order, ruling that lost profits should not have been included in the calculation of supplemental damages in the October 2013 Memorandum and Order and reducing the supplemental damages award in the case from $73.1 million to $9.4 million . In the Order, the judge also further reduced the damages award in the case by $3.0 million to reflect a settlement and license that WesternGeco entered into with a customer of the Company that had purchased and used DigiFIN units that were also included in the damage amounts awarded against the Company. In May 2014, the judge signed and entered a Final Judgment in the amount of $123.8 million related to the case. The Final Judgment also included an injunction that enjoins the Company, its agents and anyone acting in concert with it, from supplying in or from the United States the DigiFIN product or any parts unique to the DigiFIN product, or any instrumentality no more than colorably different from any of these products or parts, for combination outside of the United States. The Company has conducted its business in compliance with the district court’s orders in the case, and the Company has reorganized its operations such that it no longer supplies the DigiFIN product or any parts unique to the DigiFIN product in or from the United States. The Company and WesternGeco each appealed the Final Judgment to the United States Court of Appeals for the Federal Circuit in Washington, D.C. On July 2, 2015, the Court of Appeals reversed in part the judgment, holding the district court erred by including lost profits in the Final Judgment. Lost profits were $93.4 million and prejudgment interest was approximately $10.9 million of the $123.8 million Final Judgment. Pre-judgment interest on the lost profits portion will be treated in the same way as the lost profits. Post-judgment interest will likewise be treated in the same fashion. On July 29, 2015, WesternGeco filed a petition for rehearing en banc before the Court of Appeals. On October 30, 2015 the Court of Appeals denied WesternGeco’s petition for rehearing en banc. WesternGeco has up to 90 days to determine whether or not it will file a writ requesting the Supreme Court to review the case. As previously disclosed, the Company had taken a loss contingency accrual of $124 million . As a result of the reversal by the Court of Appeals, as of June 30, 2015, the Company reduced the loss contingency accrual to its current amount of $22 million . The Company’s assessment of its potential loss contingency may change in the future due to developments in the case and other events, such as changes in applicable law, and such reassessment could lead to the determination that no loss contingency is probable or that a greater or lesser loss contingency is probable. Any such reassessment could have a material effect on the Company’s financial condition or results of operations. Prior to the reduction in damages by the Court of Appeals, the Company arranged with sureties to post an appeal bond at the trial court. The appeal bond is uncollateralized, but the terms of the appeal bond arrangements provide the sureties the contractual right for as long as the bond is outstanding to require the Company to post cash collateral. The Company has received a request for $11 million in collateral and they are in negotiations with the sureties. The appeal bond will remain outstanding during the pendency of appeals. Other The Company has been named in various other lawsuits or threatened actions that are incidental to its ordinary business. Litigation is inherently unpredictable. Any claims against the Company, whether meritorious or not, could be time-consuming, cause the Company to incur costs and expenses, require significant amounts of management time and result in the diversion of significant operational resources. The results of these lawsuits and actions cannot be predicted with certainty. Management currently believes that the ultimate resolution of these matters will not have a material adverse impact on the financial condition, results of operations or liquidity of the Company. |
Other Income (Expense), Net
Other Income (Expense), Net | 9 Months Ended |
Sep. 30, 2015 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other Income (Expense), Net The following table is a summary of other income (expense) , net (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Reductions of loss contingency related to legal proceedings (Footnote 7) $ — $ — $ 101,978 $ 69,557 Facility restructuring charges (Footnote 2) 296 — (2,791 ) — Gain on sale of product line (a) — — — 6,522 Other expense, net (642 ) (622 ) (1,152 ) (2,109 ) Total other income (expense), net $ (346 ) $ (622 ) $ 98,035 $ 73,970 (a) In May 2014, the Company sold its Source product line for approximately $14.4 million , net of transaction fees, recording a gain of approximately $6.5 million before taxes. As a part of this transaction, the Company reduced Goodwill on the Marine reporting unit by $5.1 million . The historical results of this product line have not been material to the Company’s results of operations. |
Details of Selected Balance She
Details of Selected Balance Sheet Accounts | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Details of Selected Balance Sheet Accounts | Details of Selected Balance Sheet Accounts Inventories The following table is a summary of inventories (in thousands): September 30, 2015 December 31, 2014 Raw materials and subassemblies $ 36,530 $ 41,461 Work-in-process 6,467 18,221 Finished goods 16,213 21,284 Reserve for excess and obsolete inventories (24,527 ) (29,804 ) Total $ 34,683 $ 51,162 The $5.3 million reduction in the reserve for excess and obsolete inventories was due to the scrapping of fully reserved inventory. Other Long-term Liabilities The following table is a summary of other long-term liabilities (in thousands): September 30, 2015 December 31, 2014 Accrual for loss contingency related to legal proceedings (Footnote 7) $ 22,000 $ 123,770 Deferred rents 13,397 13,416 Facility restructuring accrual 3,298 3,353 Other long-term liabilities 1,135 3,265 Total $ 39,830 $ 143,804 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive loss The following table is a summary of changes in accumulated other comprehensive loss by component (in thousands): Foreign currency translation adjustments Total Accumulated other comprehensive loss at December 31, 2014 $ (12,807 ) $ (12,807 ) Net current-period other comprehensive income (loss) (757 ) (757 ) Accumulated other comprehensive loss at September 30, 2015 $ (13,564 ) $ (13,564 ) |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information and Non-Cash Activity | 9 Months Ended |
Sep. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information and Non-cash Activity | Supplemental Cash Flow Information and Non-cash Activity The following table is a summary of cash paid for Interest and Income taxes and non-cash items from investing and financing activities (in thousands): Nine Months Ended September 30, 2015 2014 Cash paid during the period for: Interest $ 8,036 $ 9,087 Income taxes $ 7,614 $ 12,008 Non-cash items from investing and financing activities: Purchases of computer equipment financed through capital leases $ 1,178 $ 5,768 Investment in multi-client data library financed through accounts payable $ 13,617 $ 1,298 Conversion of investment in a convertible note to equity $ — $ 3,151 Transfer of inventory to property, plant, equipment and seismic rental equipment $ 15,936 (a) $ 3,039 (a) This transfer of inventory to property, plant, equipment and seismic rental equipment relates to ocean bottom seismic equipment manufactured by the Company to be deployed in the acquisition of ocean bottom seismic data. During the nine months ended September 30, 2015 , the Company purchased approximately $17.6 million of property, plant, equipment and seismic rental equipment, including approximately $14.3 million related to the manufacture of ocean bottom seismic equipment that will be used by the Ocean Bottom Services segment. |
Acquisition of OceanGeo
Acquisition of OceanGeo | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisition of OceanGeo | Acquisition of OceanGeo In 2014, the Company completed the acquisition of OceanGeo B.V. (“OceanGeo”). OceanGeo specializes in seismic acquisition operations using ocean bottom cables deployed from vessels leased by OceanGeo. For a complete discussion of the acquisition of OceanGeo, see Footnote 3 to the Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . The following summarized unaudited pro forma consolidated income statement information for the nine months ended September 30, 2014 , assumes that the OceanGeo acquisition had occurred as of the beginning of the period prior to the period the acquisition occurred. The Company has prepared these unaudited pro forma financial results for comparative purposes only. These unaudited pro forma financial results may not be indicative of the results that would have occurred if ION had completed the acquisition as of the beginning of that prior period or the results that may be attained in the future. Amounts presented below are in thousands, except for the per share amounts: Pro forma Consolidated ION Income Statement Information Nine Months Ended September 30, 2014 Net revenues $ 381,902 Income from operations $ 22,492 Net income $ 55,838 Net income attributable to ION $ 53,684 Basic and diluted net income per common share $ 0.33 OceanGeo did not record any revenues during the nine months ended September 30, 2015 due to its vessels being idle while it attempts to secure a backlog of future orders. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Authoritative guidance on fair value measurements defines fair value, establishes a framework for measuring fair value and stipulates the related disclosure requirements. The Company follows a three-level hierarchy, prioritizing and defining the types of inputs used to measure fair value. The carrying amounts of the Company’s long-term debt as of September 30, 2015 and December 31, 2014 were $186.3 million and $190.6 million , respectively, compared to its fair values of $108.9 million and $162.6 million as of September 30, 2015 and December 31, 2014 , respectively. The fair value of the long-term debt was calculated using an active market price, based on Level 1 inputs defined as quoted prices for identical instruments in active markets. Fair Value of Other Financial Instruments. Due to their highly liquid nature, the amount of the Company’s other financial instruments, including cash and cash equivalents, accounts and unbilled receivables, notes receivable, accounts payable, and accrued multi-client data library royalties, represent their approximate fair value. |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-based Compensation | Stock-based Compensation Stock Appreciation Rights (“SARs”) . On March 1, 2015, the Company issued 3,108,107 SAR awards to 16 individuals with an exercise price of $2.28 . The vesting of these 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 exercise 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. For the nine months ended September 30, 2015 , the Company recorded $0.6 million of share-based compensation expense attributable to SAR awards. Pursuant to ASC 718, “ Compensation – Stock Compensation ,” the SARs are considered liability awards and as such, these amounts are accrued in the liability section of the balance sheet. The Company calculated the fair value of each SAR award on the date of grant using a Monte Carlo simulation model. The following assumptions were used: March 1, 2015 Risk-free interest rates 2.03% Expected lives (in years) 2.7 Expected dividend yield —% Expected volatility 60.27% |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions BGP Inc. (“BGP”) owned approximately 14.4% of the Company’s outstanding common stock as of September 30, 2015 . For the nine months ended September 30, 2015 and 2014 , the Company recorded revenues from BGP of $5.2 million and $5.1 million , respectively. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Revenue Recognition — In May 2014, the FASB and the International Accounting Standards Board (“IASB”) jointly issued new accounting guidance for recognition of revenue. This new guidance replaces virtually all existing U.S. GAAP and IFRS guidance on revenue recognition. On July 9, 2015, the FASB voted to defer the effective date for its new revenue standard for public and nonpublic entities reporting under U.S. GAAP by one year. As a result, the new guidance is now effective for fiscal years beginning after December 15, 2017. This new guidance applies to all periods presented. Therefore, when the Company issues its financial statements on Forms 10-Q and 10-K for periods included in its year ended December 31, 2018, its comparative periods that are presented from the years ended December 31, 2016 and 2017 must be retrospectively presented in compliance with this new guidance. The new guidance requires companies to make more estimates and use more judgment than under current accounting guidance. Public entities will be permitted to adopt the standard as early as the original public entity effective date (i.e, annual reporting periods beginning after December 15, 2016 and interim periods therein). Early adoption prior to that date will not be permitted. The FASB and IASB (collectively, the “Boards”) have discussed clarifying the guidance in their new revenue standards for: (1) licenses of intellectual property, (2) identifying performance obligations, (3) noncash consideration and (4) collectability. The Boards have also discussed whether to add practical expedients for the accounting for contract modifications at transition and the presentation of sales taxes, and the FASB separately discussed several technical corrections. The FASB and the IASB did not agree on the nature and breadth of all of the changes to be proposed. The Boards are expected to issue separate exposure drafts later this year. The Company continues to evaluate (i) the two allowed adoption methods to determine which method it plans to use for retrospective presentation of comparative periods, (ii) the impact of proposed clarifications to the guidance on timing of the recognition of revenue within the Company’s various revenue streams, (iii) the Company’s option to adopt the new guidance either as of the originally proposed effective date or the proposed deferred effective date and (iv) whether the implementation of this new guidance will have a material impact on the Company’s consolidated financial position or results of operations for the periods presented. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 9 Months Ended |
Sep. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information In 2013, the Company sold $175.0 million in aggregate principal amount of its Note s. The Notes were issued by ION Geophysical Corporation and are guaranteed by the Company’s material U.S. subsidiaries, GX Technology Corporation, ION Exploration Products (U.S.A.), Inc. and I/O Marine Systems, Inc. (“the Guarantors”), all of which are 100-percent-owned subsidiaries. The Guarantors have fully and unconditionally guaranteed the payment obligations of ION Geophysical Corporation with respect to the Notes. The following condensed consolidating financial information presents the results of operations, financial position and cash flows for: • ION Geophysical Corporation and the Guarantors (in each case, reflecting investments in subsidiaries utilizing the equity method of accounting). • All other subsidiaries of ION Geophysical Corporation that are not Guarantors. • The consolidating adjustments necessary to present ION Geophysical Corporation’s results on a consolidated basis. This condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements and footnotes. September 30, 2015 Balance Sheet ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 25,470 $ — $ 62,769 $ — $ 88,239 Accounts receivable, net 6 11,017 10,564 — 21,587 Unbilled receivables — 30,719 1,668 — 32,387 Inventories — 12,578 22,105 — 34,683 Prepaid expenses and other current assets 2,638 1,971 6,160 (645 ) 10,124 Total current assets 28,114 56,285 103,266 (645 ) 187,020 Deferred income tax asset — 8,296 200 (2,790 ) 5,706 Property, plant, equipment and seismic rental equipment, net 5,051 24,064 47,966 — 77,081 Multi-client data library, net — 121,329 14,578 — 135,907 Investment in subsidiaries 684,815 232,637 — (917,452 ) — Goodwill — — 26,809 — 26,809 Intangible assets, net — 4,956 350 — 5,306 Intercompany receivables 78,982 — — (78,982 ) — Other assets 8,000 141 1,239 — 9,380 Total assets $ 804,962 $ 447,708 $ 194,408 $ (999,869 ) $ 447,209 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ — $ 6,533 $ 79 $ — $ 6,612 Accounts payable 1,763 20,508 5,679 — 27,950 Accrued expenses 16,282 25,546 12,526 (52 ) 54,302 Accrued multi-client data library royalties — 11,926 517 — 12,443 Deferred revenue — 3,135 2,440 — 5,575 Total current liabilities 18,045 67,648 21,241 (52 ) 106,882 Long-term debt, net of current maturities 175,000 4,626 40 — 179,666 Intercompany payables 491,902 69,852 9,130 (570,884 ) — Other long-term liabilities 476 31,834 10,904 (3,384 ) 39,830 Total liabilities 685,423 173,960 41,315 (574,320 ) 326,378 Redeemable noncontrolling interest — — 1,200 — 1,200 Equity: Common stock 1,648 290,460 19,138 (309,598 ) 1,648 Additional paid-in capital 892,007 180,700 234,234 (414,934 ) 892,007 Accumulated earnings (deficit) (753,987 ) 224,206 (23,589 ) (200,617 ) (753,987 ) Accumulated other comprehensive income (loss) (13,564 ) 5,663 (13,361 ) 7,698 (13,564 ) Due from ION Geophysical Corporation — (427,281 ) (64,621 ) 491,902 — Treasury stock (6,565 ) — — — (6,565 ) Total stockholders’ equity 119,539 273,748 151,801 (425,549 ) 119,539 Noncontrolling interests — — 92 — 92 Total equity 119,539 273,748 151,893 (425,549 ) 119,631 Total liabilities and equity $ 804,962 $ 447,708 $ 194,408 $ (999,869 ) $ 447,209 December 31, 2014 Balance Sheet ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 109,514 $ — $ 64,094 $ — $ 173,608 Accounts receivable, net 123 49,892 64,310 — 114,325 Unbilled receivables — 18,548 4,051 — 22,599 Inventories — 4,013 47,149 — 51,162 Prepaid expenses and other current assets 6,692 2,697 8,769 (4,496 ) 13,662 Total current assets 116,329 75,150 188,373 (4,496 ) 375,356 Deferred income tax asset (7,852 ) 6,675 749 9,032 8,604 Property, plant, equipment and seismic rental equipment, net 6,412 33,065 30,363 — 69,840 Multi-client data library, net — 96,423 22,246 — 118,669 Investment in subsidiaries 675,499 278,294 — (953,793 ) — Goodwill — — 27,388 — 27,388 Intangible assets, net — 6,254 534 — 6,788 Intercompany receivables 29,979 — — (29,979 ) — Other assets 10,191 147 274 — 10,612 Total assets $ 830,558 $ 496,008 $ 269,927 $ (979,236 ) $ 617,257 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ — $ 6,965 $ 684 $ — $ 7,649 Accounts payable 4,308 12,028 20,527 — 36,863 Accrued expenses 3,904 34,738 21,807 4,815 65,264 Accrued multi-client data library royalties — 34,624 595 — 35,219 Deferred revenue — 5,263 2,999 — 8,262 Total current liabilities 8,212 93,618 46,612 4,815 153,257 Long-term debt, net of current maturities 175,000 7,839 106 — 182,945 Intercompany payables 509,124 8,892 21,087 (539,103 ) — Other long-term liabilities 2,609 130,985 10,489 (279 ) 143,804 Total liabilities 694,945 241,334 78,294 (534,567 ) 480,006 Redeemable noncontrolling interest — — 1,539 — 1,539 Equity: Common stock 1,645 290,460 19,138 (309,598 ) 1,645 Additional paid-in capital 887,749 180,700 234,234 (414,934 ) 887,749 Accumulated earnings (deficit) (734,409 ) 208,846 26,981 (235,827 ) (734,409 ) Accumulated other comprehensive income (loss) (12,807 ) 6,229 (12,795 ) 6,566 (12,807 ) Due from ION Geophysical Corporation — (431,561 ) (77,563 ) 509,124 — Treasury stock (6,565 ) — — — (6,565 ) Total stockholders’ equity 135,613 254,674 189,995 (444,669 ) 135,613 Noncontrolling interests — — 99 — 99 Total equity 135,613 254,674 190,094 (444,669 ) 135,712 Total liabilities and equity $ 830,558 $ 496,008 $ 269,927 $ (979,236 ) $ 617,257 Three Months Ended September 30, 2015 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net revenues $ — $ 41,768 $ 25,072 $ (166 ) $ 66,674 Cost of sales — 31,712 24,020 (166 ) 55,566 Gross profit — 10,056 1,052 — 11,108 Total operating expenses 3,914 11,266 8,802 — 23,982 Loss from operations (3,914 ) (1,210 ) (7,750 ) — (12,874 ) Interest expense, net (4,769 ) (107 ) 22 — (4,854 ) Intercompany interest, net 184 (806 ) 622 — — Equity in losses of investments (14,248 ) (12,141 ) — 26,389 — Other income (expense) 326 (9 ) (663 ) — (346 ) Net loss before income taxes (22,421 ) (14,273 ) (7,769 ) 26,389 (18,074 ) Income tax expense (benefit) (2,038 ) 65 4,055 — 2,082 Net loss (20,383 ) (14,338 ) (11,824 ) 26,389 (20,156 ) Net income attributable to noncontrolling interests — — (227 ) — (227 ) Net loss attributable to ION (20,383 ) (14,338 ) (12,051 ) 26,389 (20,383 ) Comprehensive net loss $ (21,748 ) $ (15,543 ) $ (12,940 ) $ 28,710 $ (21,521 ) Comprehensive income attributable to noncontrolling interest — — (227 ) — (227 ) Comprehensive net loss attributable to ION $ (21,748 ) $ (15,543 ) $ (13,167 ) $ 28,710 $ (21,748 ) Three Months Ended September 30, 2014 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net revenues $ — $ 33,344 $ 73,947 $ (751 ) $ 106,540 Cost of sales — 32,447 45,621 (751 ) 77,317 Gross profit — 897 28,326 — 29,223 Total operating expenses 7,599 15,357 11,616 — 34,572 Income (loss) from operations (7,599 ) (14,460 ) 16,710 — (5,349 ) Interest expense, net (4,931 ) (58 ) (59 ) — (5,048 ) Intercompany interest, net (90 ) 566 (476 ) — — Equity in earnings (losses) of investments (12,131 ) 8,500 — (1,927 ) (5,558 ) Other income (expense) (17 ) 21 (626 ) — (622 ) Net income (loss) before income taxes (24,768 ) (5,431 ) 15,549 (1,927 ) (16,577 ) Income tax expense (benefit) (227 ) 800 7,772 — 8,345 Net income (loss) (24,541 ) (6,231 ) 7,777 (1,927 ) (24,922 ) Net loss attributable to noncontrolling interests — — 381 — 381 Net income (loss) attributable to ION (24,541 ) (6,231 ) 8,158 (1,927 ) (24,541 ) Comprehensive net income (loss) $ (26,407 ) $ (8,838 ) $ 5,168 $ 3,289 $ (26,788 ) Comprehensive loss attributable to noncontrolling interest — — 381 — 381 Comprehensive net income (loss) attributable to ION $ (26,407 ) $ (8,838 ) $ 5,549 $ 3,289 $ (26,407 ) Nine Months Ended September 30, 2015 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net revenues $ — $ 83,082 $ 61,972 $ (1,007 ) $ 144,047 Cost of sales — 84,715 75,154 (1,007 ) 158,862 Gross loss — (1,633 ) (13,182 ) — (14,815 ) Total operating expenses 18,296 37,151 29,990 — 85,437 Loss from operations (18,296 ) (38,784 ) (43,172 ) — (100,252 ) Interest expense, net (13,826 ) (279 ) 19 — (14,086 ) Intercompany interest, net 466 (2,208 ) 1,742 — — Equity in earnings (losses) of investments 9,881 (45,091 ) — 35,210 — Other income (expense) 268 101,961 (4,194 ) — 98,035 Net income (loss) before income taxes (21,507 ) 15,599 (45,605 ) 35,210 (16,303 ) Income tax expense (benefit) (1,929 ) 239 5,287 — 3,597 Net income (loss) (19,578 ) 15,360 (50,892 ) 35,210 (19,900 ) Net loss attributable to noncontrolling interests — — 322 — 322 Net income (loss) applicable to ION (19,578 ) 15,360 (50,570 ) 35,210 (19,578 ) Comprehensive net income (loss) $ (20,335 ) $ 14,794 $ (51,458 ) $ 36,342 $ (20,657 ) Comprehensive loss attributable to noncontrolling interest — — 322 — 322 Comprehensive net income (loss) attributable to ION $ (20,335 ) $ 14,794 $ (51,136 ) $ 36,342 $ (20,335 ) Nine Months Ended September 30, 2014 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net revenues $ — $ 159,347 $ 215,400 $ (2,029 ) $ 372,718 Cost of sales — 117,461 132,981 (2,029 ) 248,413 Gross profit — 41,886 82,419 — 124,305 Total operating expenses 24,138 45,938 36,122 — 106,198 Income (loss) from operations (24,138 ) (4,052 ) 46,297 — 18,107 Interest expense, net (13,962 ) (148 ) (669 ) — (14,779 ) Intercompany interest, net (234 ) 1,519 (1,285 ) — — Equity in earnings (losses) of investments 92,195 32,615 738 (134,575 ) (9,027 ) Other income (expense) (1,231 ) 73,504 1,697 — 73,970 Net income before income taxes 52,630 103,438 46,778 (134,575 ) 68,271 Income tax expense 4 999 13,258 — 14,261 Net income 52,626 102,439 33,520 (134,575 ) 54,010 Net income attributable to noncontrolling interests — — (1,384 ) — (1,384 ) Net income applicable to ION 52,626 102,439 32,136 (134,575 ) 52,626 Comprehensive net income $ 52,044 $ 102,957 $ 34,024 $ (135,597 ) $ 53,428 Comprehensive income attributable to noncontrolling interest — — (1,384 ) — (1,384 ) Comprehensive net income attributable to ION $ 52,044 $ 102,957 $ 32,640 $ (135,597 ) $ 52,044 Nine Months Ended September 30, 2015 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 $ (414,473 ) $ 173,725 $ 204,752 $ (35,996 ) Cash flows from investing activities: Cash invested in multi-client data library — (27,282 ) (870 ) (28,152 ) Purchase of property, plant, equipment and seismic rental equipment (347 ) (1,162 ) (16,092 ) (17,601 ) Other investing activities — 1,262 — 1,262 Net cash used in investing activities (347 ) (27,182 ) (16,962 ) (44,491 ) Cash flows from financing activities: Payments on notes payable and long-term debt — (4,798 ) (633 ) (5,431 ) Intercompany lending 330,828 (141,745 ) (189,083 ) — Other financing activities (52 ) — — (52 ) Net cash provided by (used in) financing activities 330,776 (146,543 ) (189,716 ) (5,483 ) Effect of change in foreign currency exchange rates on cash and cash equivalents — — 601 601 Net decrease in cash and cash equivalents (84,044 ) — (1,325 ) (85,369 ) Cash and cash equivalents at beginning of period 109,514 — 64,094 173,608 Cash and cash equivalents at end of period $ 25,470 $ — $ 62,769 $ 88,239 Nine Months Ended September 30, 2014 Statement of Cash Flows ION Geophysical Corporation The Guarantors All Other Subsidiaries Total Consolidated (In thousands) Cash flows from operating activities: Net cash provided by (used in) operating activities $ (40,896 ) $ 63,588 $ 64,284 $ 86,976 Cash flows from investing activities: Investment in multi-client data library — (57,192 ) (148 ) (57,340 ) Purchase of property, plant, equipment and seismic rental equipment (1,501 ) (4,165 ) (1,176 ) (6,842 ) Repayment of advance to INOVA Geophysical 1,000 — — 1,000 Net investment in and advances to OceanGeo B.V. prior to its consolidation — — (3,074 ) (3,074 ) Net proceeds from sale of Source product line — 9,881 4,513 14,394 Other investing activities 579 — 349 928 Net cash provided by (used in) investing activities 78 (51,476 ) 464 (50,934 ) Cash flows from financing activities: Payments under revolving line of credit (50,000 ) — — (50,000 ) Borrowings under revolving line of credit 15,000 — — 15,000 Payments on notes payable and long-term debt — (4,470 ) (7,267 ) (11,737 ) Cost associated with issuance of notes (2,126 ) — — (2,126 ) Intercompany lending 37,114 (7,642 ) (29,472 ) — Acquisition of non-controlling interest — — (6,000 ) (6,000 ) Other financing activities 423 — — 423 Net cash provided by (used in) financing activities 411 (12,112 ) (42,739 ) (54,440 ) Effect of change in foreign currency exchange rates on cash and cash equivalents — — 189 189 Net increase (decrease) in cash and cash equivalents (40,407 ) — 22,198 (18,209 ) Cash and cash equivalents at beginning of period 124,701 — 23,355 148,056 Cash and cash equivalents at end of period $ 84,294 $ — $ 45,553 $ 129,847 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On November 4, 2015, I ON announced that its board of directors has authorized the Company to repurchase, from time to time from November 10, 2015 through November 10, 2017, up to $25 million in shares of its outstanding common stock. The stock repurchase program may be implemented through open market repurchases or privately negotiated transactions, at management’s discretion. The actual timing, number and value of shares repurchased under the program will be determined by management at its discretion and will depend on a number of factors including the market price of the Company’s shares of common stock and general market and economic conditions, applicable legal requirements and compliance with the terms of the Company’s outstanding indebtedness. |
Restructurings (Tables)
Restructurings (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs | During the nine months ended September 30, 2015 , the Company recognized the following charges and credits (in thousands): Severance Charges (a) Facility Charges (b) Total Cost of goods sold $ 3,981 $ — $ 3,981 Operating expenses 1,910 1,323 3,233 Other (income) expense — 1,618 1,618 Income tax benefit (119 ) (150 ) (269 ) Net income attributable to noncontrolling interest (172 ) — (172 ) Consolidated total $ 5,600 $ 2,791 $ 8,391 (a) Represents severance charges related to 2015 restructurings, a portion of which relates to a noncontrolling interest. (b) Represents facility charges related to 2015 restructurings. |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | The following table is a summary of segment information (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net revenues: Solutions: New Venture $ 26,650 $ 18,446 $ 35,315 $ 76,499 Data Library 15,302 3,262 24,948 30,104 Total multi-client revenues 41,952 21,708 60,263 106,603 Data Processing 10,693 24,151 33,731 91,131 Total $ 52,645 $ 45,859 $ 93,994 $ 197,734 Systems: Towed Streamer $ 4,426 $ 13,666 $ 12,273 $ 35,782 Other 2,864 11,029 15,460 36,166 Total $ 7,290 $ 24,695 $ 27,733 $ 71,948 Software: Software Systems $ 5,869 $ 9,922 $ 19,396 $ 28,384 Services 870 1,088 2,924 3,198 Total $ 6,739 $ 11,010 $ 22,320 $ 31,582 Ocean Bottom Services $ — $ 24,976 $ — $ 71,454 Total $ 66,674 $ 106,540 $ 144,047 $ 372,718 Gross profit (loss): Solutions $ 11,294 $ 5,927 $ (6,954 ) $ 51,207 Systems 1,366 10,123 7,425 31,288 Software 4,399 8,326 14,197 23,388 Ocean Bottom Services (5,951 ) 4,847 (29,483 ) 18,422 Total $ 11,108 $ 29,223 $ (14,815 ) $ 124,305 Gross margin: Solutions 21 % 13 % (7 )% 26 % Systems 19 % 41 % 27 % 43 % Software 65 % 76 % 64 % 74 % Ocean Bottom Services — % 19 % — % 26 % Total 17 % 27 % (10 )% 33 % Income (loss) from operations: Solutions $ 768 $ (5,960 ) $ (40,766 ) $ 11,733 Systems (1,295 ) 2,917 (2,660 ) 9,835 Software 2,444 6,227 7,874 16,985 Ocean Bottom Services (7,289 ) 1,677 (34,856 ) 12,333 Corporate and other (7,502 ) (10,210 ) (29,844 ) (32,779 ) Income (loss) from operations (12,874 ) (5,349 ) (100,252 ) 18,107 Interest expense, net (4,854 ) (5,048 ) (14,086 ) (14,779 ) Equity in losses of investments — (5,558 ) — (9,027 ) Other income (expense), net (346 ) (622 ) 98,035 73,970 Income (loss) before income taxes $ (18,074 ) $ (16,577 ) $ (16,303 ) $ 68,271 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Obligations | Obligations (in thousands) September 30, 2015 December 31, 2014 Senior secured second-priority notes $ 175,000 $ 175,000 Equipment capital leases 11,278 15,059 Revolving credit facility — — Other debt — 535 Total 186,278 190,594 Current portion of long-term debt and lease obligations (6,612 ) (7,649 ) Non-current portion of long-term debt and lease obligations $ 179,666 $ 182,945 |
Debt Instrument Redemption | On or after May 15, 2015, the Company may on one or more occasions redeem all or a part of the Notes at the redemption prices set forth below, plus accrued and unpaid interest and special interest, if any, on the Notes redeemed during the twelve-month period beginning on May 15th of the years indicated below: Date Percentage 2015 104.063% 2016 102.031% 2017 and thereafter 100.000% |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Computation of basic and diluted net income per common share | The following table summarizes the computation of basic and diluted net income (loss) per common share (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Net income (loss) attributable to ION $ (20,383 ) $ (24,541 ) $ (19,578 ) $ 52,626 Weighted average number of common shares outstanding 164,755 164,149 164,672 164,021 Effect of dilutive stock awards — — — 305 Weighted average number of diluted common shares outstanding 164,755 164,149 164,672 164,326 Basic net income (loss) per share $ (0.12 ) $ (0.15 ) $ (0.12 ) $ 0.32 Diluted net income (loss) per share $ (0.12 ) $ (0.15 ) $ (0.12 ) $ 0.32 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Income, Net | The following table is a summary of other income (expense) , net (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2015 2014 2015 2014 Reductions of loss contingency related to legal proceedings (Footnote 7) $ — $ — $ 101,978 $ 69,557 Facility restructuring charges (Footnote 2) 296 — (2,791 ) — Gain on sale of product line (a) — — — 6,522 Other expense, net (642 ) (622 ) (1,152 ) (2,109 ) Total other income (expense), net $ (346 ) $ (622 ) $ 98,035 $ 73,970 (a) In May 2014, the Company sold its Source product line for approximately $14.4 million , net of transaction fees, recording a gain of approximately $6.5 million before taxes. As a part of this transaction, the Company reduced Goodwill on the Marine reporting unit by $5.1 million . The historical results of this product line have not been material to the Company’s results of operations. |
Details of Selected Balance S30
Details of Selected Balance Sheet Accounts (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Inventories | Inventories The following table is a summary of inventories (in thousands): September 30, 2015 December 31, 2014 Raw materials and subassemblies $ 36,530 $ 41,461 Work-in-process 6,467 18,221 Finished goods 16,213 21,284 Reserve for excess and obsolete inventories (24,527 ) (29,804 ) Total $ 34,683 $ 51,162 |
Summary of Other Long-term Liabilities | Other Long-term Liabilities The following table is a summary of other long-term liabilities (in thousands): September 30, 2015 December 31, 2014 Accrual for loss contingency related to legal proceedings (Footnote 7) $ 22,000 $ 123,770 Deferred rents 13,397 13,416 Facility restructuring accrual 3,298 3,353 Other long-term liabilities 1,135 3,265 Total $ 39,830 $ 143,804 |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income (Loss) | The following table is a summary of changes in accumulated other comprehensive loss by component (in thousands): Foreign currency translation adjustments Total Accumulated other comprehensive loss at December 31, 2014 $ (12,807 ) $ (12,807 ) Net current-period other comprehensive income (loss) (757 ) (757 ) Accumulated other comprehensive loss at September 30, 2015 $ (13,564 ) $ (13,564 ) |
Supplemental Cash Flow Inform32
Supplemental Cash Flow Information and Non-Cash Activity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Supplemental Cash Flow Elements [Abstract] | |
Summary of Non-cash Items from Investing and Financing Activities | The following table is a summary of cash paid for Interest and Income taxes and non-cash items from investing and financing activities (in thousands): Nine Months Ended September 30, 2015 2014 Cash paid during the period for: Interest $ 8,036 $ 9,087 Income taxes $ 7,614 $ 12,008 Non-cash items from investing and financing activities: Purchases of computer equipment financed through capital leases $ 1,178 $ 5,768 Investment in multi-client data library financed through accounts payable $ 13,617 $ 1,298 Conversion of investment in a convertible note to equity $ — $ 3,151 Transfer of inventory to property, plant, equipment and seismic rental equipment $ 15,936 (a) $ 3,039 (a) This transfer of inventory to property, plant, equipment and seismic rental equipment relates to ocean bottom seismic equipment manufactured by the Company to be deployed in the acquisition of ocean bottom seismic data. During the nine months ended September 30, 2015 , the Company purchased approximately $17.6 million of property, plant, equipment and seismic rental equipment, including approximately $14.3 million related to the manufacture of ocean bottom seismic equipment that will be used by the Ocean Bottom Services segment. |
Acquisition of OceanGeo (Tables
Acquisition of OceanGeo (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Business Acquisition, Pro Forma Information | Amounts presented below are in thousands, except for the per share amounts: Pro forma Consolidated ION Income Statement Information Nine Months Ended September 30, 2014 Net revenues $ 381,902 Income from operations $ 22,492 Net income $ 55,838 Net income attributable to ION $ 53,684 Basic and diluted net income per common share $ 0.33 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following assumptions were used: March 1, 2015 Risk-free interest rates 2.03% Expected lives (in years) 2.7 Expected dividend yield —% Expected volatility 60.27% |
Condensed Consolidating Finan35
Condensed Consolidating Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheet | September 30, 2015 Balance Sheet ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 25,470 $ — $ 62,769 $ — $ 88,239 Accounts receivable, net 6 11,017 10,564 — 21,587 Unbilled receivables — 30,719 1,668 — 32,387 Inventories — 12,578 22,105 — 34,683 Prepaid expenses and other current assets 2,638 1,971 6,160 (645 ) 10,124 Total current assets 28,114 56,285 103,266 (645 ) 187,020 Deferred income tax asset — 8,296 200 (2,790 ) 5,706 Property, plant, equipment and seismic rental equipment, net 5,051 24,064 47,966 — 77,081 Multi-client data library, net — 121,329 14,578 — 135,907 Investment in subsidiaries 684,815 232,637 — (917,452 ) — Goodwill — — 26,809 — 26,809 Intangible assets, net — 4,956 350 — 5,306 Intercompany receivables 78,982 — — (78,982 ) — Other assets 8,000 141 1,239 — 9,380 Total assets $ 804,962 $ 447,708 $ 194,408 $ (999,869 ) $ 447,209 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ — $ 6,533 $ 79 $ — $ 6,612 Accounts payable 1,763 20,508 5,679 — 27,950 Accrued expenses 16,282 25,546 12,526 (52 ) 54,302 Accrued multi-client data library royalties — 11,926 517 — 12,443 Deferred revenue — 3,135 2,440 — 5,575 Total current liabilities 18,045 67,648 21,241 (52 ) 106,882 Long-term debt, net of current maturities 175,000 4,626 40 — 179,666 Intercompany payables 491,902 69,852 9,130 (570,884 ) — Other long-term liabilities 476 31,834 10,904 (3,384 ) 39,830 Total liabilities 685,423 173,960 41,315 (574,320 ) 326,378 Redeemable noncontrolling interest — — 1,200 — 1,200 Equity: Common stock 1,648 290,460 19,138 (309,598 ) 1,648 Additional paid-in capital 892,007 180,700 234,234 (414,934 ) 892,007 Accumulated earnings (deficit) (753,987 ) 224,206 (23,589 ) (200,617 ) (753,987 ) Accumulated other comprehensive income (loss) (13,564 ) 5,663 (13,361 ) 7,698 (13,564 ) Due from ION Geophysical Corporation — (427,281 ) (64,621 ) 491,902 — Treasury stock (6,565 ) — — — (6,565 ) Total stockholders’ equity 119,539 273,748 151,801 (425,549 ) 119,539 Noncontrolling interests — — 92 — 92 Total equity 119,539 273,748 151,893 (425,549 ) 119,631 Total liabilities and equity $ 804,962 $ 447,708 $ 194,408 $ (999,869 ) $ 447,209 December 31, 2014 Balance Sheet ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) ASSETS Current assets: Cash and cash equivalents $ 109,514 $ — $ 64,094 $ — $ 173,608 Accounts receivable, net 123 49,892 64,310 — 114,325 Unbilled receivables — 18,548 4,051 — 22,599 Inventories — 4,013 47,149 — 51,162 Prepaid expenses and other current assets 6,692 2,697 8,769 (4,496 ) 13,662 Total current assets 116,329 75,150 188,373 (4,496 ) 375,356 Deferred income tax asset (7,852 ) 6,675 749 9,032 8,604 Property, plant, equipment and seismic rental equipment, net 6,412 33,065 30,363 — 69,840 Multi-client data library, net — 96,423 22,246 — 118,669 Investment in subsidiaries 675,499 278,294 — (953,793 ) — Goodwill — — 27,388 — 27,388 Intangible assets, net — 6,254 534 — 6,788 Intercompany receivables 29,979 — — (29,979 ) — Other assets 10,191 147 274 — 10,612 Total assets $ 830,558 $ 496,008 $ 269,927 $ (979,236 ) $ 617,257 LIABILITIES AND EQUITY Current liabilities: Current maturities of long-term debt $ — $ 6,965 $ 684 $ — $ 7,649 Accounts payable 4,308 12,028 20,527 — 36,863 Accrued expenses 3,904 34,738 21,807 4,815 65,264 Accrued multi-client data library royalties — 34,624 595 — 35,219 Deferred revenue — 5,263 2,999 — 8,262 Total current liabilities 8,212 93,618 46,612 4,815 153,257 Long-term debt, net of current maturities 175,000 7,839 106 — 182,945 Intercompany payables 509,124 8,892 21,087 (539,103 ) — Other long-term liabilities 2,609 130,985 10,489 (279 ) 143,804 Total liabilities 694,945 241,334 78,294 (534,567 ) 480,006 Redeemable noncontrolling interest — — 1,539 — 1,539 Equity: Common stock 1,645 290,460 19,138 (309,598 ) 1,645 Additional paid-in capital 887,749 180,700 234,234 (414,934 ) 887,749 Accumulated earnings (deficit) (734,409 ) 208,846 26,981 (235,827 ) (734,409 ) Accumulated other comprehensive income (loss) (12,807 ) 6,229 (12,795 ) 6,566 (12,807 ) Due from ION Geophysical Corporation — (431,561 ) (77,563 ) 509,124 — Treasury stock (6,565 ) — — — (6,565 ) Total stockholders’ equity 135,613 254,674 189,995 (444,669 ) 135,613 Noncontrolling interests — — 99 — 99 Total equity 135,613 254,674 190,094 (444,669 ) 135,712 Total liabilities and equity $ 830,558 $ 496,008 $ 269,927 $ (979,236 ) $ 617,257 |
Condensed Income Statement | Three Months Ended September 30, 2015 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net revenues $ — $ 41,768 $ 25,072 $ (166 ) $ 66,674 Cost of sales — 31,712 24,020 (166 ) 55,566 Gross profit — 10,056 1,052 — 11,108 Total operating expenses 3,914 11,266 8,802 — 23,982 Loss from operations (3,914 ) (1,210 ) (7,750 ) — (12,874 ) Interest expense, net (4,769 ) (107 ) 22 — (4,854 ) Intercompany interest, net 184 (806 ) 622 — — Equity in losses of investments (14,248 ) (12,141 ) — 26,389 — Other income (expense) 326 (9 ) (663 ) — (346 ) Net loss before income taxes (22,421 ) (14,273 ) (7,769 ) 26,389 (18,074 ) Income tax expense (benefit) (2,038 ) 65 4,055 — 2,082 Net loss (20,383 ) (14,338 ) (11,824 ) 26,389 (20,156 ) Net income attributable to noncontrolling interests — — (227 ) — (227 ) Net loss attributable to ION (20,383 ) (14,338 ) (12,051 ) 26,389 (20,383 ) Comprehensive net loss $ (21,748 ) $ (15,543 ) $ (12,940 ) $ 28,710 $ (21,521 ) Comprehensive income attributable to noncontrolling interest — — (227 ) — (227 ) Comprehensive net loss attributable to ION $ (21,748 ) $ (15,543 ) $ (13,167 ) $ 28,710 $ (21,748 ) Three Months Ended September 30, 2014 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net revenues $ — $ 33,344 $ 73,947 $ (751 ) $ 106,540 Cost of sales — 32,447 45,621 (751 ) 77,317 Gross profit — 897 28,326 — 29,223 Total operating expenses 7,599 15,357 11,616 — 34,572 Income (loss) from operations (7,599 ) (14,460 ) 16,710 — (5,349 ) Interest expense, net (4,931 ) (58 ) (59 ) — (5,048 ) Intercompany interest, net (90 ) 566 (476 ) — — Equity in earnings (losses) of investments (12,131 ) 8,500 — (1,927 ) (5,558 ) Other income (expense) (17 ) 21 (626 ) — (622 ) Net income (loss) before income taxes (24,768 ) (5,431 ) 15,549 (1,927 ) (16,577 ) Income tax expense (benefit) (227 ) 800 7,772 — 8,345 Net income (loss) (24,541 ) (6,231 ) 7,777 (1,927 ) (24,922 ) Net loss attributable to noncontrolling interests — — 381 — 381 Net income (loss) attributable to ION (24,541 ) (6,231 ) 8,158 (1,927 ) (24,541 ) Comprehensive net income (loss) $ (26,407 ) $ (8,838 ) $ 5,168 $ 3,289 $ (26,788 ) Comprehensive loss attributable to noncontrolling interest — — 381 — 381 Comprehensive net income (loss) attributable to ION $ (26,407 ) $ (8,838 ) $ 5,549 $ 3,289 $ (26,407 ) Nine Months Ended September 30, 2015 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net revenues $ — $ 83,082 $ 61,972 $ (1,007 ) $ 144,047 Cost of sales — 84,715 75,154 (1,007 ) 158,862 Gross loss — (1,633 ) (13,182 ) — (14,815 ) Total operating expenses 18,296 37,151 29,990 — 85,437 Loss from operations (18,296 ) (38,784 ) (43,172 ) — (100,252 ) Interest expense, net (13,826 ) (279 ) 19 — (14,086 ) Intercompany interest, net 466 (2,208 ) 1,742 — — Equity in earnings (losses) of investments 9,881 (45,091 ) — 35,210 — Other income (expense) 268 101,961 (4,194 ) — 98,035 Net income (loss) before income taxes (21,507 ) 15,599 (45,605 ) 35,210 (16,303 ) Income tax expense (benefit) (1,929 ) 239 5,287 — 3,597 Net income (loss) (19,578 ) 15,360 (50,892 ) 35,210 (19,900 ) Net loss attributable to noncontrolling interests — — 322 — 322 Net income (loss) applicable to ION (19,578 ) 15,360 (50,570 ) 35,210 (19,578 ) Comprehensive net income (loss) $ (20,335 ) $ 14,794 $ (51,458 ) $ 36,342 $ (20,657 ) Comprehensive loss attributable to noncontrolling interest — — 322 — 322 Comprehensive net income (loss) attributable to ION $ (20,335 ) $ 14,794 $ (51,136 ) $ 36,342 $ (20,335 ) Nine Months Ended September 30, 2014 Income Statement ION Geophysical Corporation The Guarantors All Other Subsidiaries Consolidating Adjustments Total Consolidated (In thousands) Net revenues $ — $ 159,347 $ 215,400 $ (2,029 ) $ 372,718 Cost of sales — 117,461 132,981 (2,029 ) 248,413 Gross profit — 41,886 82,419 — 124,305 Total operating expenses 24,138 45,938 36,122 — 106,198 Income (loss) from operations (24,138 ) (4,052 ) 46,297 — 18,107 Interest expense, net (13,962 ) (148 ) (669 ) — (14,779 ) Intercompany interest, net (234 ) 1,519 (1,285 ) — — Equity in earnings (losses) of investments 92,195 32,615 738 (134,575 ) (9,027 ) Other income (expense) (1,231 ) 73,504 1,697 — 73,970 Net income before income taxes 52,630 103,438 46,778 (134,575 ) 68,271 Income tax expense 4 999 13,258 — 14,261 Net income 52,626 102,439 33,520 (134,575 ) 54,010 Net income attributable to noncontrolling interests — — (1,384 ) — (1,384 ) Net income applicable to ION 52,626 102,439 32,136 (134,575 ) 52,626 Comprehensive net income $ 52,044 $ 102,957 $ 34,024 $ (135,597 ) $ 53,428 Comprehensive income attributable to noncontrolling interest — — (1,384 ) — (1,384 ) Comprehensive net income attributable to ION $ 52,044 $ 102,957 $ 32,640 $ (135,597 ) $ 52,044 |
Condensed Cash Flow Statement | Nine Months Ended September 30, 2015 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 $ (414,473 ) $ 173,725 $ 204,752 $ (35,996 ) Cash flows from investing activities: Cash invested in multi-client data library — (27,282 ) (870 ) (28,152 ) Purchase of property, plant, equipment and seismic rental equipment (347 ) (1,162 ) (16,092 ) (17,601 ) Other investing activities — 1,262 — 1,262 Net cash used in investing activities (347 ) (27,182 ) (16,962 ) (44,491 ) Cash flows from financing activities: Payments on notes payable and long-term debt — (4,798 ) (633 ) (5,431 ) Intercompany lending 330,828 (141,745 ) (189,083 ) — Other financing activities (52 ) — — (52 ) Net cash provided by (used in) financing activities 330,776 (146,543 ) (189,716 ) (5,483 ) Effect of change in foreign currency exchange rates on cash and cash equivalents — — 601 601 Net decrease in cash and cash equivalents (84,044 ) — (1,325 ) (85,369 ) Cash and cash equivalents at beginning of period 109,514 — 64,094 173,608 Cash and cash equivalents at end of period $ 25,470 $ — $ 62,769 $ 88,239 Nine Months Ended September 30, 2014 Statement of Cash Flows ION Geophysical Corporation The Guarantors All Other Subsidiaries Total Consolidated (In thousands) Cash flows from operating activities: Net cash provided by (used in) operating activities $ (40,896 ) $ 63,588 $ 64,284 $ 86,976 Cash flows from investing activities: Investment in multi-client data library — (57,192 ) (148 ) (57,340 ) Purchase of property, plant, equipment and seismic rental equipment (1,501 ) (4,165 ) (1,176 ) (6,842 ) Repayment of advance to INOVA Geophysical 1,000 — — 1,000 Net investment in and advances to OceanGeo B.V. prior to its consolidation — — (3,074 ) (3,074 ) Net proceeds from sale of Source product line — 9,881 4,513 14,394 Other investing activities 579 — 349 928 Net cash provided by (used in) investing activities 78 (51,476 ) 464 (50,934 ) Cash flows from financing activities: Payments under revolving line of credit (50,000 ) — — (50,000 ) Borrowings under revolving line of credit 15,000 — — 15,000 Payments on notes payable and long-term debt — (4,470 ) (7,267 ) (11,737 ) Cost associated with issuance of notes (2,126 ) — — (2,126 ) Intercompany lending 37,114 (7,642 ) (29,472 ) — Acquisition of non-controlling interest — — (6,000 ) (6,000 ) Other financing activities 423 — — 423 Net cash provided by (used in) financing activities 411 (12,112 ) (42,739 ) (54,440 ) Effect of change in foreign currency exchange rates on cash and cash equivalents — — 189 189 Net increase (decrease) in cash and cash equivalents (40,407 ) — 22,198 (18,209 ) Cash and cash equivalents at beginning of period 124,701 — 23,355 148,056 Cash and cash equivalents at end of period $ 84,294 $ — $ 45,553 $ 129,847 |
Restructurings - Narrative (Det
Restructurings - Narrative (Details) | 9 Months Ended |
Sep. 30, 2015geographical_hubslocation | |
Restructuring Cost and Reserve [Line Items] | |
Crude oil, lowest prices, number of years evaluated | 5 years |
Percentage reduction in full-time employee base | 50.00% |
Towed Streamer [Member] | Systems [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Number of geographical hubs | geographical_hubs | 2 |
Number of locations | 2 |
Restructurings - Restructuring
Restructurings - Restructuring Charges (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | $ 8,391 |
Severance Charges [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | 5,600 |
Facility Charges [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | 2,791 |
Cost of goods sold [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | 3,981 |
Cost of goods sold [Member] | Severance Charges [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | 3,981 |
Cost of goods sold [Member] | Facility Charges [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | 0 |
Operating expenses [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | 3,233 |
Operating expenses [Member] | Severance Charges [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | 1,910 |
Operating expenses [Member] | Facility Charges [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | 1,323 |
Other (income) expense [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | 1,618 |
Other (income) expense [Member] | Facility Charges [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | 1,618 |
Income tax benefit [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | (269) |
Income tax benefit [Member] | Severance Charges [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | (119) |
Income tax benefit [Member] | Facility Charges [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | (150) |
Net income attributable to noncontrolling interest [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | (172) |
Net income attributable to noncontrolling interest [Member] | Severance Charges [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Pre-tax restructuring charges | $ (172) |
Segment Information (Details)
Segment Information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)segment | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of business segments | segment | 4 | ||||
Summary of segment information | |||||
Revenues | $ 66,674,000 | $ 106,540,000 | $ 144,047,000 | $ 372,718,000 | |
Gross profit (loss) | 11,108,000 | 29,223,000 | (14,815,000) | 124,305,000 | |
Income (loss) from operations | (12,874,000) | (5,349,000) | (100,252,000) | 18,107,000 | |
Interest expense, net | (4,854,000) | (5,048,000) | (14,086,000) | (14,779,000) | |
Equity in losses of investments | 0 | (5,558,000) | 0 | (9,027,000) | |
Other income (expense), net | (346,000) | (622,000) | 98,035,000 | 73,970,000 | |
Income (loss) before income taxes | (18,074,000) | (16,577,000) | (16,303,000) | 68,271,000 | |
Operating segments [Member] | |||||
Summary of segment information | |||||
Revenues | 66,674,000 | 106,540,000 | 144,047,000 | 372,718,000 | |
Gross profit (loss) | $ 11,108,000 | $ 29,223,000 | $ (14,815,000) | $ 124,305,000 | |
Gross margin | 17.00% | 27.00% | (10.00%) | 33.00% | |
Operating segments [Member] | Solutions [Member] | |||||
Summary of segment information | |||||
Revenues | $ 52,645,000 | $ 45,859,000 | $ 93,994,000 | $ 197,734,000 | |
Gross profit (loss) | $ 11,294,000 | $ 5,927,000 | $ (6,954,000) | $ 51,207,000 | |
Gross margin | 21.00% | 13.00% | (7.00%) | 26.00% | |
Income (loss) from operations | $ 768,000 | $ (5,960,000) | $ (40,766,000) | $ 11,733,000 | |
Operating segments [Member] | Solutions [Member] | New Venture and Data Library [Member] | |||||
Summary of segment information | |||||
Revenues | 41,952,000 | 21,708,000 | 60,263,000 | 106,603,000 | |
Operating segments [Member] | Solutions [Member] | New Venture [Member] | |||||
Summary of segment information | |||||
Revenues | 26,650,000 | 18,446,000 | 35,315,000 | 76,499,000 | |
Operating segments [Member] | Solutions [Member] | Data Library [Member] | |||||
Summary of segment information | |||||
Revenues | 15,302,000 | 3,262,000 | 24,948,000 | 30,104,000 | |
Operating segments [Member] | Solutions [Member] | Data Processing [Member] | |||||
Summary of segment information | |||||
Revenues | 10,693,000 | 24,151,000 | 33,731,000 | 91,131,000 | |
Operating segments [Member] | Systems [Member] | |||||
Summary of segment information | |||||
Revenues | 7,290,000 | 24,695,000 | 27,733,000 | 71,948,000 | |
Gross profit (loss) | $ 1,366,000 | $ 10,123,000 | $ 7,425,000 | $ 31,288,000 | |
Gross margin | 19.00% | 41.00% | 27.00% | 43.00% | |
Income (loss) from operations | $ (1,295,000) | $ 2,917,000 | $ (2,660,000) | $ 9,835,000 | |
Operating segments [Member] | Systems [Member] | Towed Streamer [Member] | |||||
Summary of segment information | |||||
Revenues | 4,426,000 | 13,666,000 | 12,273,000 | 35,782,000 | |
Operating segments [Member] | Systems [Member] | Other [Member] | |||||
Summary of segment information | |||||
Revenues | 2,864,000 | 11,029,000 | 15,460,000 | 36,166,000 | |
Operating segments [Member] | Software [Member] | |||||
Summary of segment information | |||||
Revenues | 6,739,000 | 11,010,000 | 22,320,000 | 31,582,000 | |
Gross profit (loss) | $ 4,399,000 | $ 8,326,000 | $ 14,197,000 | $ 23,388,000 | |
Gross margin | 65.00% | 76.00% | 64.00% | 74.00% | |
Income (loss) from operations | $ 2,444,000 | $ 6,227,000 | $ 7,874,000 | $ 16,985,000 | |
Operating segments [Member] | Software [Member] | Software Systems [Member] | |||||
Summary of segment information | |||||
Revenues | 5,869,000 | 9,922,000 | 19,396,000 | 28,384,000 | |
Operating segments [Member] | Software [Member] | Services [Member] | |||||
Summary of segment information | |||||
Revenues | 870,000 | 1,088,000 | 2,924,000 | 3,198,000 | |
Operating segments [Member] | Ocean Bottom Services Segment [Member] | |||||
Summary of segment information | |||||
Revenues | 0 | 24,976,000 | 0 | 71,454,000 | |
Gross profit (loss) | $ (5,951,000) | $ 4,847,000 | $ (29,483,000) | $ 18,422,000 | |
Gross margin | 0.00% | 19.00% | 0.00% | 26.00% | |
Income (loss) from operations | $ (7,289,000) | $ 1,677,000 | $ (34,856,000) | $ 12,333,000 | |
Corporate and other [Member] | Corporate and Other [Member] | |||||
Summary of segment information | |||||
Income (loss) from operations | $ (7,502,000) | $ (10,210,000) | $ (29,844,000) | $ (32,779,000) | |
INOVA Geophysical [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Equity method investments value | $ 0 |
Long-term Debt - Obligations (D
Long-term Debt - Obligations (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Obligations | ||
Total debt | $ 186,278 | $ 190,594 |
Current portion of long-term debt and lease obligations | (6,612) | (7,649) |
Non-current portion of long-term debt and lease obligations | 179,666 | 182,945 |
Senior secured second-priority notes [Member] | ||
Obligations | ||
Total debt | 175,000 | 175,000 |
Equipment capital leases [Member] | ||
Obligations | ||
Total debt | 11,278 | 15,059 |
Revolving credit facility [Member] | ||
Obligations | ||
Total debt | 0 | 0 |
Other debt [Member] | ||
Obligations | ||
Total debt | $ 0 | $ 535 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) | Aug. 04, 2015USD ($) | Sep. 30, 2015USD ($) | Aug. 31, 2014USD ($) | May. 31, 2013USD ($) | May. 13, 2013USD ($) |
Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt | $ 175,000,000 | $ 175,000,000 | |||
Stated rate on debt | 8.125% | ||||
Line of Credit [Member] | PNC Bank, National Association (PNC) [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Fixed charge coverage ratio | 1.1 | ||||
Line of Credit [Member] | Revolving line of credit [Member] | PNC Bank, National Association (PNC) [Member] | |||||
Debt Instrument [Line Items] | |||||
Current borrowing capacity | $ 40,000,000 | $ 40,000,000 | $ 80,000,000 | ||
Limit for multi-client liquidation component | 15,000,000 | ||||
Qualified cash component, maximum to be removed | 20,000,000 | ||||
Debt Instrument, Covenant Compliance, Required Liquidity, Maintained Five Consecutive Business Days | 5,000,000 | ||||
Debt Instrument, Covenant Compliance, Required Liquidity, Maintained Any Business Day | $ 4,000,000 |
Long-term Debt - Debt Instrumen
Long-term Debt - Debt Instrument Redemption Percentages (Details) - Senior Notes [Member] | May. 15, 2015 |
2015 [Member] | |
Debt Instrument [Line Items] | |
Redemption price percentages | 104.063% |
2016 [Member] | |
Debt Instrument [Line Items] | |
Redemption price percentages | 102.031% |
2017 and thereafter [Member] | |
Debt Instrument [Line Items] | |
Redemption price percentages | 100.00% |
Net Income (Loss) per Share - N
Net Income (Loss) per Share - Narrative (Details) - shares | Sep. 30, 2015 | Sep. 30, 2014 |
Earnings Per Share [Abstract] | ||
Number of shares issued or committed for issuance under outstanding stock options | 8,643,375 | 9,111,725 |
Number of shares of restricted stock and shares reserved for restricted stock units outstanding | 1,363,534 | 1,386,336 |
Net Income (Loss) per Share - B
Net Income (Loss) per Share - Basic and Diluted Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) attributable to ION | $ (20,383) | $ (24,541) | $ (19,578) | $ 52,626 |
Weighted average number of common shares outstanding (in shares) | 164,755 | 164,149 | 164,672 | 164,021 |
Effect of dilutive stock awards (in shares) | 0 | 0 | 0 | 305 |
Weighted average number of diluted common shares outstanding (in shares) | 164,755 | 164,149 | 164,672 | 164,326 |
Basic net income (loss) per share (in dollars per share) | $ (0.12) | $ (0.15) | $ (0.12) | $ 0.32 |
Diluted net income (loss) per share (in dollars per share) | $ (0.12) | $ (0.15) | $ (0.12) | $ 0.32 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Loss Carryforwards [Line Items] | ||||
Effective income tax rates | (11.50%) | (50.30%) | (22.10%) | 20.90% |
Income tax expense | $ 2,082,000 | $ 8,345,000 | $ 3,597,000 | $ 14,261,000 |
Unrecognized tax benefits | 1,200,000 | 1,200,000 | ||
United States Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net deferred tax assets | $ 0 | $ 0 |
Litigation (Details)
Litigation (Details) - WesternGeco [Member] $ in Millions | Oct. 30, 2015 | May. 31, 2014USD ($) | Apr. 30, 2014USD ($) | Oct. 31, 2013USD ($) | Aug. 31, 2012USD ($) | Jun. 30, 2009Patent | Jul. 02, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) |
Litigation (Textual) [Abstract] | |||||||||
Number of patent apparatus claims contained | Patent | 4 | ||||||||
Settled Litigation [Member] | |||||||||
Litigation (Textual) [Abstract] | |||||||||
Total damages awarded | $ 123.8 | $ 9.4 | $ 73.1 | $ 105.9 | |||||
Reduction in damages award in the case | $ (3) | ||||||||
Prejudgment interest expense accrued | $ 10.9 | ||||||||
Accrual for loss contingency related to legal proceedings | $ 22 | $ 124 | |||||||
Settled Litigation [Member] | Subsequent event [Member] | |||||||||
Litigation (Textual) [Abstract] | |||||||||
Number Of Days To Request Writ To Review Case | 90 days | ||||||||
Settled Litigation [Member] | Lost Royalties [Member] | |||||||||
Litigation (Textual) [Abstract] | |||||||||
Total damages awarded | 12.5 | ||||||||
Settled Litigation [Member] | Lost Profits [Member] | |||||||||
Litigation (Textual) [Abstract] | |||||||||
Total damages awarded | $ 93.4 |
Other Income (Expense), Net - S
Other Income (Expense), Net - Summary of Other Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Income and Expenses [Abstract] | ||||
Reductions of loss contingency related to legal proceedings (Footnote 7) | $ 0 | $ 0 | $ 101,978 | $ 69,557 |
Facility restructuring charges (Footnote 2) | 296 | 0 | (2,791) | 0 |
Gain on sale of product line | 0 | 0 | 0 | 6,522 |
Other expense, net | (642) | (622) | (1,152) | (2,109) |
Total other income, net | $ (346) | $ (622) | $ 98,035 | $ 73,970 |
Other Income (Expense), Net - D
Other Income (Expense), Net - Disposal of Product Line (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
May. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | |||||
Net proceeds from sale of Source product line | $ 0 | $ 14,394 | |||
Gain on sale of Source product line | $ 0 | $ 0 | $ 0 | $ 6,522 | |
Systems [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net proceeds from sale of Source product line | $ 14,400 | ||||
Gain on sale of Source product line | 6,500 | ||||
Reduction due to sale of Source product line | $ 5,100 |
Details of Selected Balance S48
Details of Selected Balance Sheet Accounts - Inventories (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials and subassemblies | $ 36,530 | $ 41,461 |
Work-in-process | 6,467 | 18,221 |
Finished goods | 16,213 | 21,284 |
Reserve for excess and obsolete inventories | (24,527) | (29,804) |
Total | 34,683 | $ 51,162 |
Inventory adjustments | $ (5,300) |
Details of Selected Balance S49
Details of Selected Balance Sheet Accounts - Other Long-term Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Other Liabilities Disclosure [Abstract] | ||
Accrual for loss contingency related to legal proceedings (Footnote 7) | $ 22,000 | $ 123,770 |
Deferred rents | 13,397 | 13,416 |
Facility restructuring accrual | 3,298 | 3,353 |
Other long-term liabilities | 1,135 | 3,265 |
Total | $ 39,830 | $ 143,804 |
Accumulated Other Comprehensi50
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive loss at December 31, 2014 | $ (12,807) | |||
Net current-period other comprehensive income (loss) | $ (1,365) | $ (1,866) | (757) | $ (582) |
Accumulated other comprehensive loss at September 30, 2015 | (13,564) | (13,564) | ||
Foreign currency translation adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||
Accumulated other comprehensive loss at December 31, 2014 | (12,807) | |||
Net current-period other comprehensive income (loss) | (757) | |||
Accumulated other comprehensive loss at September 30, 2015 | $ (13,564) | $ (13,564) |
Supplemental Cash Flow Inform51
Supplemental Cash Flow Information and Non-Cash Activity (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash paid during the period for: | ||
Interest | $ 8,036 | $ 9,087 |
Income taxes | 7,614 | 12,008 |
Non-cash items from investing and financing activities: | ||
Purchases of computer equipment financed through capital leases | 1,178 | 5,768 |
Investment in multi-client data library financed through accounts payable | 13,617 | 1,298 |
Conversion of investment in a convertible note to equity | 0 | 3,151 |
Transfer of inventory to property, plant, equipment and seismic rental equipment | 15,936 | 3,039 |
Segment Reporting Information [Line Items] | ||
Purchase of property, plant, equipment and seismic rental assets | 17,601 | $ 6,842 |
Ocean Bottom Services Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Purchase of property, plant, equipment and seismic rental assets | $ 14,300 |
Acquisition of OceanGeo - Pro F
Acquisition of OceanGeo - Pro Forma Income Statement Information (Details) $ / shares in Units, $ in Thousands | 9 Months Ended |
Sep. 30, 2014USD ($)$ / shares | |
Business Combinations [Abstract] | |
Net revenues | $ 381,902 |
Income (loss) from operations | 22,492 |
Net income (loss) | 55,838 |
Net income (loss) attributable to ION | $ 53,684 |
Basic and diluted net income (loss) per common share, in dollars per share | $ / shares | $ 0.33 |
Fair Value of Financial Instr53
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Carrying value of long-term debt | $ 186,278 | $ 190,594 |
Fair value of long-term debt | $ 108,900 | $ 162,600 |
Stock-based Compensation - Narr
Stock-based Compensation - Narrative (Details) - Stock Appreciation Rights (SARs) [Member] $ / shares in Units, $ in Millions | Mar. 01, 2015individual$ / sharesshares | Sep. 30, 2015USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of SARs issued | shares | 3,108,107 | |
Number of individuals received SARs | individual | 16 | |
Exercise price of SARs | $ 2.28 | |
Vesting period of SARs | 4 years | |
Number of days weighted average price of common stock must be greater than a percentage of exercise price of SARs | 20 days | |
Annual vesting percentage | 33.33% | |
Share-based compensation expense | $ | $ 0.6 | |
Phase one [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage that weighted average price of common stock must be greater than exercise price of SARs | 120.00% | |
Annual vesting percentage | 33.33% | |
Phase two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage that weighted average price of common stock must be greater than exercise price of SARs | 125.00% | |
Annual vesting percentage | 33.33% | |
Phase three [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage that weighted average price of common stock must be greater than exercise price of SARs | 130.00% | |
Annual vesting percentage | 33.33% |
Stock-based Compensation - Valu
Stock-based Compensation - Valuation Assumptions (Details) | Mar. 01, 2015 |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Risk-free interest rates | 2.03% |
Expected lives (in years) | 2 years 8 months 9 days |
Expected dividend yield | 0.00% |
Expected volatility | 60.27% |
Related Party Transactions (Det
Related Party Transactions (Details) - BGP Joint Venture [Member] - Co-venturer [Member] - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Property Subject to or Available for Operating Lease [Line Items] | ||
Company's outstanding common stock owned by BGP, percent | 14.40% | |
Related party transaction, revenues from transactions with related party | $ 5.2 | $ 5.1 |
Condensed Consolidating Finan57
Condensed Consolidating Financial Information - Narrative (Details) - USD ($) | May. 31, 2013 | May. 13, 2013 |
Senior Notes [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Principal amount of debt | $ 175,000,000 | $ 175,000,000 |
Condensed Consolidating Finan58
Condensed Consolidating Financial Information - Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Current assets: | ||||
Cash and cash equivalents | $ 88,239 | $ 173,608 | $ 129,847 | $ 148,056 |
Accounts receivable, net | 21,587 | 114,325 | ||
Unbilled receivables | 32,387 | 22,599 | ||
Inventories | 34,683 | 51,162 | ||
Prepaid expenses and other current assets | 10,124 | 13,662 | ||
Total current assets | 187,020 | 375,356 | ||
Deferred income tax asset | 5,706 | 8,604 | ||
Property, plant, equipment and seismic rental equipment, net | 77,081 | 69,840 | ||
Multi-client data library, net | 135,907 | 118,669 | ||
Investment in subsidiaries | 0 | 0 | ||
Goodwill | 26,809 | 27,388 | ||
Intangible assets, net | 5,306 | 6,788 | ||
Intercompany receivables | 0 | 0 | ||
Other assets | 9,380 | 10,612 | ||
Total assets | 447,209 | 617,257 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 6,612 | 7,649 | ||
Accounts payable | 27,950 | 36,863 | ||
Accrued expenses | 54,302 | 65,264 | ||
Accrued multi-client data library royalties | 12,443 | 35,219 | ||
Deferred revenue | 5,575 | 8,262 | ||
Total current liabilities | 106,882 | 153,257 | ||
Long-term debt, net of current maturities | 179,666 | 182,945 | ||
Intercompany payables | 0 | 0 | ||
Other long-term liabilities | 39,830 | 143,804 | ||
Total liabilities | 326,378 | 480,006 | ||
Redeemable noncontrolling interests | 1,200 | 1,539 | ||
Stockholders’ equity: | ||||
Common stock | 1,648 | 1,645 | ||
Additional paid-in capital | 892,007 | 887,749 | ||
Accumulated earnings (deficit) | (753,987) | (734,409) | ||
Accumulated other comprehensive income (loss) | (13,564) | (12,807) | ||
Due from ION Geophysical Corporation | 0 | 0 | ||
Treasury stock | (6,565) | (6,565) | ||
Total stockholders' equity | 119,539 | 135,613 | ||
Noncontrolling interests | 92 | 99 | ||
Total equity | 119,631 | 135,712 | ||
Total liabilities and equity | 447,209 | 617,257 | ||
Reportable Legal Entities [Member] | ION Geophysical Corporation [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 25,470 | 109,514 | 84,294 | 124,701 |
Accounts receivable, net | 6 | 123 | ||
Unbilled receivables | 0 | 0 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other current assets | 2,638 | 6,692 | ||
Total current assets | 28,114 | 116,329 | ||
Deferred income tax asset | 0 | (7,852) | ||
Property, plant, equipment and seismic rental equipment, net | 5,051 | 6,412 | ||
Multi-client data library, net | 0 | 0 | ||
Investment in subsidiaries | 684,815 | 675,499 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Intercompany receivables | 78,982 | 29,979 | ||
Other assets | 8,000 | 10,191 | ||
Total assets | 804,962 | 830,558 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 1,763 | 4,308 | ||
Accrued expenses | 16,282 | 3,904 | ||
Accrued multi-client data library royalties | 0 | 0 | ||
Deferred revenue | 0 | 0 | ||
Total current liabilities | 18,045 | 8,212 | ||
Long-term debt, net of current maturities | 175,000 | 175,000 | ||
Intercompany payables | 491,902 | 509,124 | ||
Other long-term liabilities | 476 | 2,609 | ||
Total liabilities | 685,423 | 694,945 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Stockholders’ equity: | ||||
Common stock | 1,648 | 1,645 | ||
Additional paid-in capital | 892,007 | 887,749 | ||
Accumulated earnings (deficit) | (753,987) | (734,409) | ||
Accumulated other comprehensive income (loss) | (13,564) | (12,807) | ||
Due from ION Geophysical Corporation | 0 | 0 | ||
Treasury stock | (6,565) | (6,565) | ||
Total stockholders' equity | 119,539 | 135,613 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 119,539 | 135,613 | ||
Total liabilities and equity | 804,962 | 830,558 | ||
Reportable Legal Entities [Member] | The Guarantors [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 11,017 | 49,892 | ||
Unbilled receivables | 30,719 | 18,548 | ||
Inventories | 12,578 | 4,013 | ||
Prepaid expenses and other current assets | 1,971 | 2,697 | ||
Total current assets | 56,285 | 75,150 | ||
Deferred income tax asset | 8,296 | 6,675 | ||
Property, plant, equipment and seismic rental equipment, net | 24,064 | 33,065 | ||
Multi-client data library, net | 121,329 | 96,423 | ||
Investment in subsidiaries | 232,637 | 278,294 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 4,956 | 6,254 | ||
Intercompany receivables | 0 | 0 | ||
Other assets | 141 | 147 | ||
Total assets | 447,708 | 496,008 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 6,533 | 6,965 | ||
Accounts payable | 20,508 | 12,028 | ||
Accrued expenses | 25,546 | 34,738 | ||
Accrued multi-client data library royalties | 11,926 | 34,624 | ||
Deferred revenue | 3,135 | 5,263 | ||
Total current liabilities | 67,648 | 93,618 | ||
Long-term debt, net of current maturities | 4,626 | 7,839 | ||
Intercompany payables | 69,852 | 8,892 | ||
Other long-term liabilities | 31,834 | 130,985 | ||
Total liabilities | 173,960 | 241,334 | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Stockholders’ equity: | ||||
Common stock | 290,460 | 290,460 | ||
Additional paid-in capital | 180,700 | 180,700 | ||
Accumulated earnings (deficit) | 224,206 | 208,846 | ||
Accumulated other comprehensive income (loss) | 5,663 | 6,229 | ||
Due from ION Geophysical Corporation | (427,281) | (431,561) | ||
Treasury stock | 0 | 0 | ||
Total stockholders' equity | 273,748 | 254,674 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 273,748 | 254,674 | ||
Total liabilities and equity | 447,708 | 496,008 | ||
Reportable Legal Entities [Member] | All Other Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 62,769 | 64,094 | $ 45,553 | $ 23,355 |
Accounts receivable, net | 10,564 | 64,310 | ||
Unbilled receivables | 1,668 | 4,051 | ||
Inventories | 22,105 | 47,149 | ||
Prepaid expenses and other current assets | 6,160 | 8,769 | ||
Total current assets | 103,266 | 188,373 | ||
Deferred income tax asset | 200 | 749 | ||
Property, plant, equipment and seismic rental equipment, net | 47,966 | 30,363 | ||
Multi-client data library, net | 14,578 | 22,246 | ||
Investment in subsidiaries | 0 | 0 | ||
Goodwill | 26,809 | 27,388 | ||
Intangible assets, net | 350 | 534 | ||
Intercompany receivables | 0 | 0 | ||
Other assets | 1,239 | 274 | ||
Total assets | 194,408 | 269,927 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 79 | 684 | ||
Accounts payable | 5,679 | 20,527 | ||
Accrued expenses | 12,526 | 21,807 | ||
Accrued multi-client data library royalties | 517 | 595 | ||
Deferred revenue | 2,440 | 2,999 | ||
Total current liabilities | 21,241 | 46,612 | ||
Long-term debt, net of current maturities | 40 | 106 | ||
Intercompany payables | 9,130 | 21,087 | ||
Other long-term liabilities | 10,904 | 10,489 | ||
Total liabilities | 41,315 | 78,294 | ||
Redeemable noncontrolling interests | 1,200 | 1,539 | ||
Stockholders’ equity: | ||||
Common stock | 19,138 | 19,138 | ||
Additional paid-in capital | 234,234 | 234,234 | ||
Accumulated earnings (deficit) | (23,589) | 26,981 | ||
Accumulated other comprehensive income (loss) | (13,361) | (12,795) | ||
Due from ION Geophysical Corporation | (64,621) | (77,563) | ||
Treasury stock | 0 | 0 | ||
Total stockholders' equity | 151,801 | 189,995 | ||
Noncontrolling interests | 92 | 99 | ||
Total equity | 151,893 | 190,094 | ||
Total liabilities and equity | 194,408 | 269,927 | ||
Consolidation, Eliminations [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Accounts receivable, net | 0 | 0 | ||
Unbilled receivables | 0 | 0 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other current assets | (645) | (4,496) | ||
Total current assets | (645) | (4,496) | ||
Deferred income tax asset | (2,790) | 9,032 | ||
Property, plant, equipment and seismic rental equipment, net | 0 | 0 | ||
Multi-client data library, net | 0 | 0 | ||
Investment in subsidiaries | (917,452) | (953,793) | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Intercompany receivables | (78,982) | (29,979) | ||
Other assets | 0 | 0 | ||
Total assets | (999,869) | (979,236) | ||
Current liabilities: | ||||
Current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses | (52) | 4,815 | ||
Accrued multi-client data library royalties | 0 | 0 | ||
Deferred revenue | 0 | 0 | ||
Total current liabilities | (52) | 4,815 | ||
Long-term debt, net of current maturities | 0 | 0 | ||
Intercompany payables | (570,884) | (539,103) | ||
Other long-term liabilities | (3,384) | (279) | ||
Total liabilities | (574,320) | (534,567) | ||
Redeemable noncontrolling interests | 0 | 0 | ||
Stockholders’ equity: | ||||
Common stock | (309,598) | (309,598) | ||
Additional paid-in capital | (414,934) | (414,934) | ||
Accumulated earnings (deficit) | (200,617) | (235,827) | ||
Accumulated other comprehensive income (loss) | 7,698 | 6,566 | ||
Due from ION Geophysical Corporation | 491,902 | 509,124 | ||
Treasury stock | 0 | 0 | ||
Total stockholders' equity | (425,549) | (444,669) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | (425,549) | (444,669) | ||
Total liabilities and equity | $ (999,869) | $ (979,236) |
Condensed Consolidating Finan59
Condensed Consolidating Financial Information - Condensed Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Income Statements, Captions [Line Items] | ||||
Net revenues | $ 66,674 | $ 106,540 | $ 144,047 | $ 372,718 |
Cost of sales | 55,566 | 77,317 | 158,862 | 248,413 |
Gross profit (loss) | 11,108 | 29,223 | (14,815) | 124,305 |
Total operating expenses | 23,982 | 34,572 | 85,437 | 106,198 |
Income (loss) from operations | (12,874) | (5,349) | (100,252) | 18,107 |
Interest expense, net | (4,854) | (5,048) | (14,086) | (14,779) |
Intercompany interest, net | 0 | 0 | 0 | 0 |
Equity in losses of investments | 0 | (5,558) | 0 | (9,027) |
Other income (expense) | (346) | (622) | 98,035 | 73,970 |
Income (loss) before income taxes | (18,074) | (16,577) | (16,303) | 68,271 |
Income tax expense (benefit) | 2,082 | 8,345 | 3,597 | 14,261 |
Net income (loss) | (20,156) | (24,922) | (19,900) | 54,010 |
Net (income) loss attributable to noncontrolling interests | (227) | 381 | 322 | (1,384) |
Net income (loss) attributable to ION | (20,383) | (24,541) | (19,578) | 52,626 |
Comprehensive net income (loss) | (21,521) | (26,788) | (20,657) | 53,428 |
Comprehensive (income) loss attributable to noncontrolling interest | (227) | 381 | 322 | (1,384) |
Comprehensive net income (loss) attributable to ION | (21,748) | (26,407) | (20,335) | 52,044 |
Reportable Legal Entities [Member] | ION Geophysical Corporation [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net revenues | 0 | 0 | 0 | 0 |
Cost of sales | 0 | 0 | 0 | 0 |
Gross profit (loss) | 0 | 0 | 0 | 0 |
Total operating expenses | 3,914 | 7,599 | 18,296 | 24,138 |
Income (loss) from operations | (3,914) | (7,599) | (18,296) | (24,138) |
Interest expense, net | (4,769) | (4,931) | (13,826) | (13,962) |
Intercompany interest, net | 184 | (90) | 466 | (234) |
Equity in losses of investments | (14,248) | (12,131) | 9,881 | 92,195 |
Other income (expense) | 326 | (17) | 268 | (1,231) |
Income (loss) before income taxes | (22,421) | (24,768) | (21,507) | 52,630 |
Income tax expense (benefit) | (2,038) | (227) | (1,929) | 4 |
Net income (loss) | (20,383) | (24,541) | (19,578) | 52,626 |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to ION | (20,383) | (24,541) | (19,578) | 52,626 |
Comprehensive net income (loss) | (21,748) | (26,407) | (20,335) | 52,044 |
Comprehensive (income) loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Comprehensive net income (loss) attributable to ION | (21,748) | (26,407) | (20,335) | 52,044 |
Reportable Legal Entities [Member] | The Guarantors [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net revenues | 41,768 | 33,344 | 83,082 | 159,347 |
Cost of sales | 31,712 | 32,447 | 84,715 | 117,461 |
Gross profit (loss) | 10,056 | 897 | (1,633) | 41,886 |
Total operating expenses | 11,266 | 15,357 | 37,151 | 45,938 |
Income (loss) from operations | (1,210) | (14,460) | (38,784) | (4,052) |
Interest expense, net | (107) | (58) | (279) | (148) |
Intercompany interest, net | (806) | 566 | (2,208) | 1,519 |
Equity in losses of investments | (12,141) | 8,500 | (45,091) | 32,615 |
Other income (expense) | (9) | 21 | 101,961 | 73,504 |
Income (loss) before income taxes | (14,273) | (5,431) | 15,599 | 103,438 |
Income tax expense (benefit) | 65 | 800 | 239 | 999 |
Net income (loss) | (14,338) | (6,231) | 15,360 | 102,439 |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to ION | (14,338) | (6,231) | 15,360 | 102,439 |
Comprehensive net income (loss) | (15,543) | (8,838) | 14,794 | 102,957 |
Comprehensive (income) loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Comprehensive net income (loss) attributable to ION | (15,543) | (8,838) | 14,794 | 102,957 |
Reportable Legal Entities [Member] | All Other Subsidiaries [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net revenues | 25,072 | 73,947 | 61,972 | 215,400 |
Cost of sales | 24,020 | 45,621 | 75,154 | 132,981 |
Gross profit (loss) | 1,052 | 28,326 | (13,182) | 82,419 |
Total operating expenses | 8,802 | 11,616 | 29,990 | 36,122 |
Income (loss) from operations | (7,750) | 16,710 | (43,172) | 46,297 |
Interest expense, net | 22 | (59) | 19 | (669) |
Intercompany interest, net | 622 | (476) | 1,742 | (1,285) |
Equity in losses of investments | 0 | 0 | 0 | 738 |
Other income (expense) | (663) | (626) | (4,194) | 1,697 |
Income (loss) before income taxes | (7,769) | 15,549 | (45,605) | 46,778 |
Income tax expense (benefit) | 4,055 | 7,772 | 5,287 | 13,258 |
Net income (loss) | (11,824) | 7,777 | (50,892) | 33,520 |
Net (income) loss attributable to noncontrolling interests | (227) | 381 | 322 | (1,384) |
Net income (loss) attributable to ION | (12,051) | 8,158 | (50,570) | 32,136 |
Comprehensive net income (loss) | (12,940) | 5,168 | (51,458) | 34,024 |
Comprehensive (income) loss attributable to noncontrolling interest | (227) | 381 | 322 | (1,384) |
Comprehensive net income (loss) attributable to ION | (13,167) | 5,549 | (51,136) | 32,640 |
Consolidation, Eliminations [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net revenues | (166) | (751) | (1,007) | (2,029) |
Cost of sales | (166) | (751) | (1,007) | (2,029) |
Gross profit (loss) | 0 | 0 | 0 | 0 |
Total operating expenses | 0 | 0 | 0 | 0 |
Income (loss) from operations | 0 | 0 | 0 | 0 |
Interest expense, net | 0 | 0 | 0 | 0 |
Intercompany interest, net | 0 | 0 | 0 | 0 |
Equity in losses of investments | 26,389 | (1,927) | 35,210 | (134,575) |
Other income (expense) | 0 | 0 | 0 | 0 |
Income (loss) before income taxes | 26,389 | (1,927) | 35,210 | (134,575) |
Income tax expense (benefit) | 0 | 0 | 0 | 0 |
Net income (loss) | 26,389 | (1,927) | 35,210 | (134,575) |
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | 0 |
Net income (loss) attributable to ION | 26,389 | (1,927) | 35,210 | (134,575) |
Comprehensive net income (loss) | 28,710 | 3,289 | 36,342 | (135,597) |
Comprehensive (income) loss attributable to noncontrolling interest | 0 | 0 | 0 | 0 |
Comprehensive net income (loss) attributable to ION | $ 28,710 | $ 3,289 | $ 36,342 | $ (135,597) |
Condensed Consolidating Finan60
Condensed Consolidating Financial Information - Condensed Cash Flow Statement (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | $ (35,996) | $ 86,976 |
Cash flows from investing activities: | ||
Cash invested in multi-client data library | (28,152) | (57,340) |
Purchase of property, plant, equipment and seismic rental equipment | (17,601) | (6,842) |
Repayment of advances to INOVA Geophysical | 0 | 1,000 |
Net investment in and advances to OceanGeo B.V. prior to its consolidation | 0 | (3,074) |
Net proceeds from sale of Source product line | 0 | 14,394 |
Other investing activities | 1,262 | 928 |
Net cash used in investing activities | (44,491) | (50,934) |
Cash flows from financing activities: | ||
Payments under revolving line of credit | 0 | (50,000) |
Borrowings under revolving line of credit | 0 | 15,000 |
Payments on notes payable and long-term debt | (5,431) | (11,737) |
Cost associated with issuance of notes | (146) | (2,126) |
Intercompany lending | 0 | 0 |
Acquisition of non-controlling interest | (6,000) | |
Other financing activities | (52) | 423 |
Net cash used in financing activities | (5,483) | (54,440) |
Effect of change in foreign currency exchange rates on cash and cash equivalents | 601 | 189 |
Net decrease in cash and cash equivalents | (85,369) | (18,209) |
Cash and cash equivalents at beginning of period | 173,608 | 148,056 |
Cash and cash equivalents at end of period | 88,239 | 129,847 |
Reportable Legal Entities [Member] | ION Geophysical Corporation [Member] | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | (414,473) | (40,896) |
Cash flows from investing activities: | ||
Cash invested in multi-client data library | 0 | 0 |
Purchase of property, plant, equipment and seismic rental equipment | (347) | (1,501) |
Repayment of advances to INOVA Geophysical | 1,000 | |
Net investment in and advances to OceanGeo B.V. prior to its consolidation | 0 | |
Net proceeds from sale of Source product line | 0 | |
Other investing activities | 0 | 579 |
Net cash used in investing activities | (347) | 78 |
Cash flows from financing activities: | ||
Payments under revolving line of credit | (50,000) | |
Borrowings under revolving line of credit | 15,000 | |
Payments on notes payable and long-term debt | 0 | 0 |
Cost associated with issuance of notes | (2,126) | |
Intercompany lending | 330,828 | 37,114 |
Acquisition of non-controlling interest | 0 | |
Other financing activities | (52) | 423 |
Net cash used in financing activities | 330,776 | 411 |
Effect of change in foreign currency exchange rates on cash and cash equivalents | 0 | 0 |
Net decrease in cash and cash equivalents | (84,044) | (40,407) |
Cash and cash equivalents at beginning of period | 109,514 | 124,701 |
Cash and cash equivalents at end of period | 25,470 | 84,294 |
Reportable Legal Entities [Member] | The Guarantors [Member] | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | 173,725 | 63,588 |
Cash flows from investing activities: | ||
Cash invested in multi-client data library | (27,282) | (57,192) |
Purchase of property, plant, equipment and seismic rental equipment | (1,162) | (4,165) |
Repayment of advances to INOVA Geophysical | 0 | |
Net investment in and advances to OceanGeo B.V. prior to its consolidation | 0 | |
Net proceeds from sale of Source product line | 9,881 | |
Other investing activities | 1,262 | 0 |
Net cash used in investing activities | (27,182) | (51,476) |
Cash flows from financing activities: | ||
Payments under revolving line of credit | 0 | |
Borrowings under revolving line of credit | 0 | |
Payments on notes payable and long-term debt | (4,798) | (4,470) |
Cost associated with issuance of notes | 0 | |
Intercompany lending | (141,745) | (7,642) |
Acquisition of non-controlling interest | 0 | |
Other financing activities | 0 | 0 |
Net cash used in financing activities | (146,543) | (12,112) |
Effect of change in foreign currency exchange rates on cash and cash equivalents | 0 | 0 |
Net decrease in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 |
Reportable Legal Entities [Member] | All Other Subsidiaries [Member] | ||
Cash flows from operating activities: | ||
Net cash provided by (used in) operating activities | 204,752 | 64,284 |
Cash flows from investing activities: | ||
Cash invested in multi-client data library | (870) | (148) |
Purchase of property, plant, equipment and seismic rental equipment | (16,092) | (1,176) |
Repayment of advances to INOVA Geophysical | 0 | |
Net investment in and advances to OceanGeo B.V. prior to its consolidation | (3,074) | |
Net proceeds from sale of Source product line | 4,513 | |
Other investing activities | 0 | 349 |
Net cash used in investing activities | (16,962) | 464 |
Cash flows from financing activities: | ||
Borrowings under revolving line of credit | 0 | |
Payments on notes payable and long-term debt | (633) | (7,267) |
Cost associated with issuance of notes | 0 | |
Intercompany lending | (189,083) | (29,472) |
Acquisition of non-controlling interest | (6,000) | |
Other financing activities | 0 | 0 |
Net cash used in financing activities | (189,716) | (42,739) |
Effect of change in foreign currency exchange rates on cash and cash equivalents | 601 | 189 |
Net decrease in cash and cash equivalents | (1,325) | 22,198 |
Cash and cash equivalents at beginning of period | 64,094 | 23,355 |
Cash and cash equivalents at end of period | 62,769 | $ 45,553 |
Consolidation, Eliminations [Member] | ||
Cash flows from financing activities: | ||
Cash and cash equivalents at beginning of period | 0 | |
Cash and cash equivalents at end of period | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) | Nov. 05, 2015USD ($) |
Subsequent event [Member] | |
Subsequent Event [Line Items] | |
Stock repurchase program, authorized amount | $ 25,000,000 |