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Condensed Consolidating Financial Information
 9 Months Ended
Sep. 30, 2020
Condensed Financial Information Disclosure [Abstract]  
Condensed Consolidating Financial Information Condensed Consolidating Financial Information
The Second Lien Notes were issued by ION Geophysical Corporation and are guaranteed by Guarantors, all of which are wholly owned subsidiaries. The Guarantors have fully and unconditionally guaranteed the payment obligations of ION Geophysical Corporation with respect to the Second Lien Notes. The following condensed consolidating financial information presents the results of operations, financial position and cash flows for:
•ION Geophysical Corporation and the Guarantors (in each case, reflecting investments in subsidiaries utilizing the equity method of accounting).
•All other subsidiaries of ION Geophysical Corporation that are not Guarantors.
•The 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 condensed consolidated financial statements and footnotes. For additional information pertaining to the Second Lien Notes, See Item 2. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II of this Form 10-Q.
September 30, 2020
Balance SheetION Geophysical CorporationThe GuarantorsAll Other SubsidiariesConsolidating AdjustmentsTotal Consolidated
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents$32,106 $31 $18,919 $— $51,056 
Accounts receivable, net— 4,985 3,303 — 8,288 
Unbilled receivables— 7,186 2,443 — 9,629 
Inventories, net— 7,182 4,691 — 11,873 
Prepaid expenses and other current assets3,858 1,006 997 — 5,861 
Total current assets35,964 20,390 30,353 — 86,707 
Deferred income tax asset— 7,982 110 — 8,092 
Property, plant and equipment, net1,439 6,550 3,238 — 11,227 
Multi-client data library, net— 44,957 8,332 — 53,289 
Investment in subsidiaries847,775 280,647 — (1,128,422)— 
Goodwill— — 18,684 — 18,684 
Intercompany receivables— 279,010 118,944 (397,954)— 
Right-of-use assets20,656 12,770 4,304 — 37,730 
Other assets1,300 786 50 — 2,136 
Total assets$907,134 $653,092 $184,015 $(1,526,376)$217,865 
LIABILITIES AND (DEFICIT) EQUITY
Current liabilities:
Current maturities of long-term debt$22,500 $1,027 $— $— $23,527 
Accounts payable1,948 31,401 1,758 — 35,107 
Accrued expenses14,917 7,544 6,736 — 29,197 
Accrued multi-client data library royalties— 20,319 215 — 20,534 
Deferred revenue— 1,143 1,013 — 2,156 
Current maturities of operating lease liabilities1,938 3,630 1,159 — 6,727 
Total current liabilities41,303 65,064 10,881 — 117,248 
Long-term debt, net of current maturities119,349 — — — 119,349 
Operating lease liabilities, net of current maturities22,227 14,359 3,794 — 40,380 
Intercompany payables784,937 — — (784,937)— 
Other long-term liabilities377 35 — — 412 
Total liabilities968,193 79,458 14,675 (784,937)277,389 
(Deficit) Equity:
Common stock144 290,460 47,776 (338,236)144 
Additional paid-in capital958,189 180,700 203,909 (384,609)958,189 
Accumulated earnings (deficit)(998,380)398,464 26,645 (425,109)(998,380)
Accumulated other comprehensive income (loss)(21,012)4,238 (23,770)19,532 (21,012)
Due from ION Geophysical Corporation— (300,228)(86,755)386,983 — 
Total stockholders’ (deficit) equity(61,059)573,634 167,805 (741,439)(61,059)
Noncontrolling interest— — 1,535 — 1,535 
Total (deficit) equity(61,059)573,634 169,340 (741,439)(59,524)
Total liabilities and (deficit) equity$907,134 $653,092 $184,015 $(1,526,376)$217,865 
December 31, 2019
Balance SheetION Geophysical CorporationThe GuarantorsAll Other SubsidiariesConsolidating AdjustmentsTotal Consolidated
(In thousands)
ASSETS
Current assets:
Cash and cash equivalents$8,426 $26 $24,613 $— $33,065 
Accounts receivable, net8 19,493 10,047 — 29,548 
Unbilled receivables— 7,314 4,501 — 11,815 
Inventories, net— 6,902 5,285 — 12,187 
Prepaid expenses and other current assets3,292 1,513 1,207 — 6,012 
Total current assets11,726 35,248 45,653 — 92,627 
Deferred income tax asset402 8,417 (85)— 8,734 
Property, plant and equipment, net786 8,112 4,290 — 13,188 
Multi-client data library, net— 54,479 5,905 — 60,384 
Investment in subsidiaries841,522 279,327 — (1,120,849)— 
Goodwill— — 23,585 — 23,585 
Intercompany receivables— 287,692 99,884 (387,576)— 
Right-of-use assets11,934 15,802 4,810 — 32,546 
Other assets1,171 905 54 — 2,130 
Total assets$867,541 $689,982 $184,096 $(1,508,425)$233,194 
LIABILITIES AND (DEFICIT) EQUITY
Current liabilities:
Current maturities of long-term debt$972 $1,135 $— $— $2,107 
Accounts payable2,259 44,641 2,416 — 49,316 
Accrued expenses9,933 9,982 10,413 — 30,328 
Accrued multi-client data library royalties— 18,616 215 — 18,831 
Deferred revenue— 3,465 1,086 — 4,551 
Current maturities of operating lease liabilities4,429 5,469 1,157 — 11,055 
Total current liabilities17,593 83,308 15,287 — 116,188 
Long-term debt, net of current maturities118,618 734 — — 119,352 
Operating lease liabilities, net of current maturities11,208 15,346 4,279 — 30,833 
Intercompany payables755,524 — — (755,524)— 
Other long-term liabilities1,418 35 — — 1,453 
Total liabilities904,361 99,423 19,566 (755,524)267,826 
(Deficit) Equity:
Common stock142 290,460 47,776 (338,236)142 
Additional paid-in capital956,647 180,700 203,909 (384,609)956,647 
Accumulated earnings (deficit)(974,291)396,793 18,837 (415,630)(974,291)
Accumulated other comprehensive income (loss)(19,318)4,281 (21,907)17,626 (19,318)
Due from ION Geophysical Corporation— (281,675)(86,273)367,948 — 
Total stockholders’ (deficit) equity(36,820)590,559 162,342 (752,901)(36,820)
Noncontrolling interest— — 2,188 — 2,188 
Total (deficit) equity(36,820)590,559 164,530 (752,901)(34,632)
Total liabilities and (deficit) equity$867,541 $689,982 $184,096 $(1,508,425)$233,194 
Three Months Ended September 30, 2020
Income StatementION Geophysical CorporationThe GuarantorsAll Other SubsidiariesConsolidating AdjustmentsTotal Consolidated
(In thousands)
Net revenues$— $9,799 $6,435 $— $16,234 
Cost of sales— 11,326 3,619 — 14,945 
Gross profit (loss)— (1,527)2,816 — 1,289 
Total operating expenses6,335 4,270 1,848 — 12,453 
Income (loss) from operations(6,335)(5,797)968 — (11,164)
Interest expense, net(3,368)(322)21 — (3,669)
Intercompany interest, net(247)(1,425)1,672 — — 
Equity in earnings (losses) of investments(6,081)1,722 — 4,359 — 
Other expense, net(4)(282)(239)— (525)
Net income (loss) before income taxes(16,035)(6,104)2,422 4,359 (15,358)
Income tax expense572 185 299 — 1,056 
Net income (loss)(16,607)(6,289)2,123 4,359 (16,414)
Net income attributable to noncontrolling interest— — (193)— (193)
Net income (loss) attributable to ION$(16,607)$(6,289)$1,930 $4,359 $(16,607)
Comprehensive net income (loss)$(15,786)$(6,289)$2,746 $3,687 $(15,642)
Comprehensive income attributable to noncontrolling interest— — (144)— (144)
Comprehensive net income (loss) attributable to ION$(15,786)$(6,289)$2,602 $3,687 $(15,786)
Three Months Ended September 30, 2019
Income StatementION Geophysical CorporationThe GuarantorsAll Other SubsidiariesConsolidating AdjustmentsTotal Consolidated
(In thousands)
Net revenues$— $21,474 $31,765 $— $53,239 
Cost of sales— 20,165 7,786 — 27,951 
Gross profit— 1,309 23,979 — 25,288 
Total operating expenses9,514 7,976 3,940 — 21,430 
Income (loss) from operations(9,514)(6,667)20,039 — 3,858 
Interest expense, net(3,197)(49)91 — (3,155)
Intercompany interest, net65 (2,077)2,012 — — 
Equity in earnings of investments8,988 18,398 — (27,386)— 
Other income (expense), net16 (55)(203)— (242)
Net income (loss) before income taxes(3,642)9,550 21,939 (27,386)461 
Income tax expense (benefit)81 (403)4,112 — 3,790 
Net income (loss)(3,723)9,953 17,827 (27,386)(3,329)
Net income attributable to noncontrolling interest— — (394)— (394)
Net income (loss) attributable to ION$(3,723)$9,953 $17,433 $(27,386)$(3,723)
Comprehensive net income (loss)$(4,751)$9,953 $16,403 $(25,962)$(4,357)
Comprehensive income attributable to noncontrolling interest— — (394)— (394)
Comprehensive net income (loss) attributable to ION$(4,751)$9,953 $16,009 $(25,962)$(4,751)
Nine Months Ended September 30, 2020
Income StatementION Geophysical CorporationThe GuarantorsAll Other SubsidiariesConsolidating AdjustmentsTotal Consolidated
(In thousands)
Net revenues$— $61,969 $33,410 $— $95,379 
Cost of sales— 46,357 13,638 — 59,995 
Impairment of multi-client data library— 1,167 — — 1,167 
Gross profit— 14,445 19,772 — 34,217 
Total operating expenses19,787 13,974 6,616 — 40,377 
Impairment of goodwill— — 4,150 — 4,150 
Income (loss) from operations(19,787)471 9,006 — (10,310)
Interest expense, net(9,923)(484)103 — (10,304)
Intercompany interest, net(705)(4,884)5,589 — — 
Equity in earnings (losses) of investments1,865 7,614 — (9,479)— 
Other expense, net8,139 (276)(1,188)— 6,675 
Net income (loss) before income taxes(20,411)2,441 13,510 (9,479)(13,939)
Income tax expense3,678 770 5,534 — 9,982 
Net income (loss)(24,089)1,671 7,976 (9,479)(23,921)
Net income attributable to noncontrolling interest— — (168)— (168)
Net income (loss) attributable to ION$(24,089)$1,671 $7,808 $(9,479)$(24,089)
Comprehensive net income (loss)$(25,783)$1,628 $6,113 $(7,622)$(25,664)
Comprehensive income attributable to noncontrolling interest— — (119)— (119)
Comprehensive net income (loss) attributable to ION$(25,783)$1,628 $5,994 $(7,622)$(25,783)
Nine Months Ended September 30, 2019
Income StatementION Geophysical CorporationThe GuarantorsAll Other SubsidiariesConsolidating AdjustmentsTotal Consolidated
(In thousands)
Net revenues$— $65,552 $66,418 $— $131,970 
Cost of sales— 56,106 21,081 — 77,187 
Gross profit— 9,446 45,337 — 54,783 
Total operating expenses31,330 26,204 11,881 — 69,415 
Income (loss) from operations(31,330)(16,758)33,456 — (14,632)
Interest expense, net(9,560)(156)338 — (9,378)
Intercompany interest, net588 521 (1,109)— — 
Equity in earnings of investments7,330 26,786 — (34,116)— 
Other income (expense), net4 (265)(677)— (938)
Net income (loss) before income taxes(32,968)10,128 32,008 (34,116)(24,948)
Income tax expense (benefit)737 (532)7,711 — 7,916 
Net income (loss)(33,705)10,660 24,297 (34,116)(32,864)
Net income attributable to noncontrolling interests— — (841)— (841)
Net income (loss) applicable to ION$(33,705)$10,660 $23,456 $(34,116)$(33,705)
Comprehensive net income (loss)$(34,703)$10,617 $22,444 $(32,220)$(33,862)
Comprehensive income attributable to noncontrolling interest— — (841)— (841)
Comprehensive net income (loss) attributable to ION$(34,703)$10,617 $21,603 $(32,220)$(34,703)
Nine Months Ended September 30, 2020
Statement of Cash FlowsION Geophysical CorporationThe GuarantorsAll Other SubsidiariesTotal Consolidated
(In thousands)
Cash flows from operating activities:
Net cash provided by operating activities$3,917 $2,253 $6,998 $13,168 
Cash flows from investing activities:
Cash invested in multi-client data library— (8,344)(11,497)(19,841)
Purchase of property, plant and equipment (35)(415)(415)(865)
Net cash used in investing activities(35)(8,759)(11,912)(20,706)
Cash flows from financing activities:
Borrowings under revolving line of credit27,000 — — 27,000 
Payments under revolving line of credit(4,500)— — (4,500)
Proceeds from government relief funding6,923 — — 6,923 
Payments on notes payable and long-term debt(972)(842)— (1,814)
Intercompany lending(6,289)7,353 (1,064)— 
Dividend payment to non-controlling interest— — (217)(217)
Other financing activities(91)— — (91)
Net cash provided by (used in) financing activities22,071 6,511 (1,281)27,301 
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash— — 501 501 
Net increase (decrease) in cash, cash equivalents and restricted cash25,953 5 (5,694)20,264 
Cash, cash equivalents and restricted cash at beginning of period8,479 26 24,613 33,118 
Cash, cash equivalents and restricted cash at end of period$34,432 $31 $18,919 $53,382 

The following table is a reconciliation of cash and cash equivalents to total cash, cash equivalents, and restricted cash:
September 30, 2020
ION Geophysical CorporationThe GuarantorsAll Other SubsidiariesTotal Consolidated
(In thousands)
 Cash and cash equivalents $32,106 $31 $18,919 $51,056 
 Restricted cash included in prepaid expenses and other assets2,326 — — 2,326 
 Total cash, cash equivalents, and restricted cash shown in statements of cash flows $34,432 $31 $18,919 $53,382 
Nine Months Ended September 30, 2019
Statement of Cash FlowsION Geophysical CorporationThe GuarantorsAll Other SubsidiariesTotal Consolidated
(In thousands)
Cash flows from operating activities:
Net cash provided by operating activities$8,955 $9,619 $730 $19,304 
Cash flows from investing activities:
Investment in multi-client data library— (15,197)(6,028)(21,225)
Purchase of property, plant and equipment (259)(118)(895)(1,272)
Net cash used in investing activities(259)(15,315)(6,923)(22,497)
Cash flows from financing activities:
Borrowings under revolving line of credit15,000 — — 15,000 
Payments under revolving line of credit(15,000)— — (15,000)
Payments on notes payable and long-term debt(1,159)(801)— (1,960)
Intercompany lending(13,511)6,495 7,016 — 
Other financing activities(655)— — (655)
Net cash provided by (used in) financing activities(15,325)5,694 7,016 (2,615)
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash— — 151 151 
Net increase (decrease) in cash, cash equivalents and restricted cash(6,629)(2)974 (5,657)
Cash, cash equivalents and restricted cash at beginning of period14,085 47 19,722 33,854 
Cash, cash equivalents and restricted cash at end of period$7,456 $45 $20,696 $28,197 

The following table is a reconciliation of cash and cash equivalents to total cash, cash equivalents, and restricted cash:
September 30, 2019
ION Geophysical CorporationThe GuarantorsAll Other SubsidiariesTotal Consolidated
(In thousands)
 Cash and cash equivalents$7,153 $45 $20,696 $27,894 
 Restricted cash included in prepaid expenses and other current assets303 — — 303 
 Total cash, cash equivalents, and restricted cash shown in statement of cash flows$7,456 $45 $20,696 $28,197