Stockholder's Equity

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Stockholder's Equity

STOCKHOLDER’S EQUITY

In prior years and during the six months ended June 30, 2018, Holdings did not maintain a cash account. Therefore, the Company made payments, as needed, on Holdings’ behalf for corporate expenditures such as taxes and share repurchases for employees that have left the Company and who held equity instruments in Holdings. The Company received payments on the outstanding balance only when Holdings received cash from stock issuances. Prior to the dividend discussed below, the balance due from Holdings was $1.7 million (the “Holdings Receivable”).

In July 2018, Holdings established a cash account; however, since it is a holding company, it is reliant on funding from Seitel, Inc. to cover most of its expenditures. As part of the July 2018 Transaction, Holdings incurred $1.9 million of expenses related to the transaction and for share repurchases for employees and directors that have left the Company. These payments were funded by a cash dividend from Seitel, Inc. to Holdings. Additionally, in September 2018, the Board of Directors of Seitel, Inc. approved an additional dividend for the Holdings Receivable resulting in a total dividend in the third quarter of 2018 of $3.7 million. The expectation is that future permitted payments such as taxes and share repurchases will be treated as dividends to Holdings.