Restructuring and Other Charges

3 Months Ended

Mar. 31, 2015

Restructuring and Related Activities [Abstract]

Restructurings and Other Charges

The recent decline in crude oil prices to five-year lows has negatively impacted the economic outlook of the Company’s E&P 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 spending and re-prioritized their reduced capital spend to production-related activities and existing assets over exploration. Seismic spending is discretionary; therefore, E&P companies have disproportionately cut their spend on seismic-related services and products.

During the first quarter of 2015, the Company continued its restructuring program, focusing on centralizing the Company’s global data processing capabilities to core geographical hubs in the U.S. and the U.K. and reducing the Company’s marine repair infrastructure to two locations in the U.S. and U.A.E. Under this program, the Company made additional reductions to its headcount. Including December 2014, these restructurings have resulted in approximately a 20% reduction of full-time employees. During the three months ended March 31, 2015, the Company recognized the following pre-tax charges (in thousands):



	Severance Charges^(a)			Facility Charges^(b)		Total
Cost of goods sold	$	1,813		$	—	$	1,813
Operating expenses	198			—		198
Other expense	—			1,913		1,913
Net income attributable to noncontrolling interest	(172		)	—		(172		)
Consolidated total	$	1,839		$	1,913	$	3,752


^(a)	Represents severance charges related to first quarter 2015 restructuring, a portion of which relates to a noncontrolling interest.


^(b)	Represents facility charges related to first quarter 2015 restructuring.

During the second quarter, the Company expects to incur additional restructuring charges related to vacating facilities and other items in the range of $2 million to $4 million.

- Definition

The entire disclosure for restructuring and related activities. Description of restructuring activities such as exit and disposal activities, include facts and circumstances leading to the plan, the expected plan completion date, the major types of costs associated with the plan activities, total expected costs, the accrual balance at the end of the period, and the periods over which the remaining accrual will be settled.

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