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Revenue From Contracts With Customers
 9 Months Ended
Sep. 30, 2020
Revenue from Contract with Customer [Abstract]  
Revenue From Contracts With Customers Revenue From Contracts With Customers
The Company derives revenue from the (i) sale or license of multi-client and proprietary data, imaging and reservoir services within its E&P Technologies & Services segment; (ii) sale, license and repair of seismic data acquisition systems and other equipment; and (iii) sale or license of seismic command and control software systems and software solutions for operations management within its Operations Optimization segment. All E&P Technology & Services’ revenues and the services component of Optimization Software & Services’ revenues under Operations Optimization segment are classified as service revenues. All other revenues are classified as product revenues.    
The Company uses a five-step model to determine proper revenue recognition from customer contracts. Revenue is recognized when (i) a contract is approved by all parties; (ii) the goods or services promised in the contract are identified; (iii) the consideration the Company expects to receive in exchange for the goods or services promised is determined; (iv) the consideration is allocated to the goods and services in the contract; and (v) control of the promised goods or services is transferred to the customer. The Company is not required to disclose information about remaining contractual future performance obligations with an original term of one year or less. The Company does not have any contractual future performance obligations with an original term of over one year.
Revenue by Geographic Area
The following table is a summary of net revenues by geographic area (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
 2020201920202019
North America$479 $12,182 $37,920 $32,984 
Latin America7,925 22,720 22,695 50,572 
Asia Pacific3,777 2,744 15,696 8,287 
Europe3,011 8,335 12,997 24,850 
Middle East306 3,899 2,202 6,364 
Africa344 2,874 1,939 7,541 
Other392 485 1,930 1,372 
Total$16,234 $53,239 $95,379 $131,970 
See Note 3“Segment Information” for net revenue by segment for the three and nine months ended September 30, 2020 and 2019.
Unbilled Receivables
Unbilled receivables balances relate to revenues recognized on multi-client surveys, imaging and reservoir services and devices equipment repairs on a proportionate basis, and on licensing of multi-client data for which invoices have not yet been presented to the customer. The following table is a summary of unbilled receivables (in thousands):
September 30, 2020December 31, 2019
New Venture$4,144 $5,222 
Imaging and Reservoir Services3,705 6,539 
Devices1,780 54 
Total$9,629 $11,815 
The changes in unbilled receivables are as follows (in thousands):
 Unbilled receivables at December 31, 2019$11,815 
 Recognition of unbilled receivables (a)
91,024 
 Revenues billed to customers (a)
(93,210)
Unbilled receivables at September 30, 2020$9,629 
(a) Includes all gross revenue recognition and related billing activity of the Company. As a matter of process, all net revenue recognized is initially reflected as an unbilled receivable and subsequently billed to customers, as applicable, including net revenue for all of software and a portion of devices within the Operations Optimization segment, although they are billed at the time of recognition.
Deferred Revenue
Billing practices are governed by the terms of each contract based upon achievement of milestones or pre-agreed schedules. Billing does not necessarily correlate with revenue recognized on a proportionate basis as work is performed and control is transferred to the customer. Deferred revenue represents cash received in excess of revenue recognized as of the reporting period but to be recognized in future periods. The following table is a summary of deferred revenues (in thousands):
September 30, 2020December 31, 2019
New Venture$500 $1,956 
Imaging and Reservoir Services608 1,501 
Optimization Software & Services1,000 642 
Devices48 452 
Total $2,156 $4,551 
The changes in deferred revenues are as follows (in thousands):
Deferred revenue at December 31, 2019$4,551 
Cash collected in excess of revenue recognized1,961 
Recognition of deferred revenue (a)
(4,356)
Deferred revenue at September 30, 2020$2,156 
(a) The majority of deferred revenue recognized relates to Company’s Ventures group.
The Company expects to recognize the majority of deferred revenue within the next 12 months.
Credit Risks
For the nine months ended September 30, 2020 and 2019, the Company had one customer with sales that exceeded 10% of the Company’s consolidated net revenues. Revenues related to each of these customers are included within the E&P Technology & Services segment.
At September 30, 2020, the Company had two customers with balances that accounted for 39% of the Company’s total combined accounts receivable and unbilled receivable balances. The Company routinely evaluates the financial stability and creditworthiness of its customers. At September 30, 2019, the Company had two customers with a combined balance that accounted for 40% of the Company’s total combined accounts receivable and unbilled receivable balances.
The Company routinely evaluates the financial stability and creditworthiness of its customers. The Company has a corporate credit policy that is intended to minimize the risk of financial loss due to a customer’s inability to pay. Credit coverage decisions for customers are based on references, payment histories, financial and other data. The Company utilizes a third party trade credit insurance policy. The Company has historically not extended long-term credit to its customers.