þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 22-2286646 | |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) |
Title of Each Class | Name of Each Exchange on Which Registered | |
Common Stock, $0.01 par value | New York Stock Exchange |
Large accelerated filer ¨ | Accelerated filer þ | Non-accelerated filer ¨ | Smaller reporting company ¨ |
Document | Parts Into Which Incorporated | |
Portions of the registrant’s definitive Proxy Statement for its Annual Meeting of Stockholders scheduled to be held on May 17, 2017, to be filed pursuant to Regulation 14A | Part III |
Page | ||
PART I | ||
Item 1. | Business | |
Item 1A. | Risk Factors | |
Item 1B. | Unresolved Staff Comments | |
Item 2. | Properties | |
Item 3. | Legal Proceedings | |
Item 4. | Mine Safety Disclosures | |
PART II | ||
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | |
Item 6. | Selected Financial Data | |
Item 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
Item 7A. | Quantitative and Qualitative Disclosures about Market Risk | |
Item 8. | Financial Statements and Supplementary Data | |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | |
Item 9A. | Controls and Procedures | |
Item 9B. | Other Information | |
PART III | ||
Item 10. | Directors, Executive Officers and Corporate Governance | |
Item 11. | Executive Compensation | |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | |
Item 13. | Certain Relationships and Related Transactions, and Director Independence | |
Item 14. | Principal Accounting Fees and Services | |
PART IV | ||
Item 15. | Exhibits and Financial Statement Schedules | |
Signatures | ||
Index to Consolidated Financial Statements |
• | Leverage our key technologies to provide integrated solutions to oil and gas companies, across the entire E&P lifecycle. More of our customers are seeking fully integrated offerings from seismic companies, from survey planning and design, to leading technology differentiation in acquisition and processing. We have transformed our Company from an equipment provider to an integrated service provider, where leading equipment and software technologies underpin our solution offerings. The growth in our E&P Technology & Services business over the past decade is a testament to our steadfast execution of this strategy. Whereas our E&P Technology & Services offerings, including our BasinSPAN™ 2-D seismic programs, were focused on the earlier frontier exploration phase of the E&P lifecycle, our newest offering, OBS services through OceanGeo, is geared to the later, less volatile, production phase of the E&P lifecycle leveraging our internally developed technology, including Calypso™, our newest OBS data acquisition system. |
• | Expand and globalize our E&P Technology & Services business. We seek to expand and grow our E&P Technology & Services business into new regions, with new customers and new offerings, including data processing services through our Imaging Services group and our Ventures multi-client and proprietary programs. Historically known for our 2-D programs, we entered the 3-D multi-client market in 2014 by acquiring and processing our first survey offshore Ireland. For the foreseeable future, we expect the majority of our near-term investments to be in research and development and computing infrastructure for our data processing business and to support our multi-client projects. We believe this focus better positions our company as a full-service technology company with an increasing proportion of revenues derived from E&P customers. |
• | Continue investing in advanced software and equipment technology to provide next generation services and products. We intend to continue investing in the development of new technologies for use by E&P companies. In particular, we intend to focus on the development of the next generation of our OBS data imaging technology, our Marlin simultaneous operations software, and derivative products, with the goal of obtaining technical and market leadership in what we continue to believe are important and expanding markets. In 2016, our total investment in research and development and engineering was equal to approximately 10% of our total net revenue for the year. |
• | Collaborate with our customers to provide products and solutions designed to meet their needs. A key element of our business strategy has been to understand the challenges faced by E&P companies in seismic survey planning, seismic data acquisition, processing, and interpretation. We will continue to develop and offer technology and services that enable us to work with E&P companies to solve their unique challenges around the world. We have found collaborating with E&P companies to better understand their imaging challenges and working with them to ensure the right technologies are properly applied, is the most effective method for meeting their needs. Our goal of being a full solutions provider to solve the most difficult challenges for our customers is an important element of our long-term business strategy, and we are implementing this partnership approach globally through local personnel in our regional organizations who understand the unique challenges in their areas. We formed an E&P Advisors group in 2015 designed to focus specifically on this element of our strategy. |
• | We are leveraging our key technologies to provide integrated solutions to oil and gas companies. More of our customers are seeking fully integrated offerings from seismic companies, from survey planning and design, to leading technology differentiation in acquisition and processing. ION has become an integrated service provider for both towed streamer and ocean bottom seismic services. |
• | We are a broad-based seismic solutions provider, with offerings spanning the entire geophysical workflow. We are a technology-focused service provider, with offerings that span the entire seismic workflow, from survey planning and data acquisition to processing and interpretation. Our offerings include seismic data acquisition hardware, data acquisition services, command and control software, value-added services associated with seismic survey design, seismic data processing and interpretation, and seismic data libraries. |
• | Our “asset light” strategy enables us to avoid significant fixed costs and to remain financially flexible. We do not own a fleet of marine vessels and, with the exception of OceanGeo, we do not provide our own crews to acquire seismic data. We outsource a majority of our seismic data acquisition activity to third parties that operate their own fleets of seismic vessels and equipment. Doing so enables us to avoid fixed costs associated with these assets and personnel and to manage our business in a manner designed to afford us the flexibility to quickly decrease our costs or capital investments in the event of a downturn, as we experienced 2014-2016. We actively manage the costs of developing our multi-client data library business by requiring our customers to partially pre-fund, or underwrite, the investment for any new project. Our target goal is to have a vast majority of the total cost of each new project’s data acquisition to be underwritten by our customers. We believe this conservative approach to data library investment is the most prudent way to reduce the impact of any sudden reduction in the demand for seismic data, giving us the flexibility to aggressively reduce cash outflows as we have successfully implemented in the current industry downturn. |
• | Our global footprint and ability to work in harsh conditions allow us to offset regional downturns. Our focus on conducting business around the world, even in the harshest and most extreme environments, has been and will continue to be a key component of our strategy. This global focus has been helpful in minimizing the impact of any one regional slowdown for short or extended periods of time. |
• | We have a diversified and blue chip customer base. We provide services and products to a diverse, global customer base that includes many of the largest oil and gas and geophysical companies in the world, including national oil companies (NOCs) and international oil companies (IOCs). Over the past decade, we have made significant progress in expanding our customer list and revenue sources. Whereas almost all of our revenues in the early 2000s were derived principally from seismic service providers, in 2016, E&P companies accounted for approximately 75% of our total revenues. Although we provide services and products to some of the largest companies in the world, no single customer accounted for more than 10% of our total revenue in 2014 and 2015; in 2016, we had one customer that exceeded 10% of our total revenue. |
• | any additional damages or adverse rulings in the WesternGeco litigation and future potential adverse effects on our liquidity in the event that we must collateralize our appeal bond for the full amount of the bond; |
• | future levels of capital expenditures of our customers for seismic activities; |
• | future oil and gas commodity prices; |
• | the effects of current and future worldwide economic conditions (particularly in developing countries) and demand for oil and natural gas and seismic equipment and services; |
• | future cash needs and availability of cash to fund our operations and pay our obligations; |
• | the effects of current and future unrest in the Middle East, North Africa and other regions; |
• | the timing of anticipated revenues and the recognition of those revenues for financial accounting purposes; |
• | the effects of ongoing and future industry consolidation, including, in particular, the effects of consolidation and vertical integration in the towed marine seismic streamers market; |
• | the timing of future revenue realization of anticipated orders for multi-client survey projects and data processing work in our E&P Technology & Services segment; |
• | future levels of our capital expenditures; |
• | future government regulations, pertaining to the oil and gas industry; |
• | expected net revenues, income from operations and net income; |
• | expected gross margins for our services and products; |
• | future benefits to be derived from our OceanGeo subsidiary; |
• | future seismic industry fundamentals, including future demand for seismic services and equipment; |
• | future benefits to our customers to be derived from new services and products; |
• | future benefits to be derived from our investments in technologies, joint ventures and acquired companies; |
• | future growth rates for our services and products; |
• | the degree and rate of future market acceptance of our new services and products; |
• | expectations regarding E&P companies and seismic contractor end-users purchasing our more technologically-advanced services and products; |
• | anticipated timing and success of commercialization and capabilities of services and products under development and start-up costs associated with their development; |
• | future opportunities for new products and projected research and development expenses; |
• | expected continued compliance with our debt financial covenants; |
• | expectations regarding realization of deferred tax assets; |
• | anticipated results with respect to certain estimates we make for financial accounting purposes; and |
• | compliance with the U.S. Foreign Corrupt Practices Act and other applicable U.S. and foreign laws prohibiting corrupt payments to government officials and other third parties. |
• | the supply of and demand for oil and gas; |
• | the level of prices, and expectations about future prices, of oil and gas; |
• | the cost of exploring for, developing, producing and delivering oil and gas; |
• | the expected rates of decline for current production; |
• | the discovery rates of new oil and gas reserves; |
• | weather conditions, including hurricanes, that can affect oil and gas operations over a wide area, as well as less severe inclement weather that can preclude or delay seismic data acquisition; |
• | domestic and worldwide economic conditions; |
• | significant devaluation of the Mexican Peso and its impact on the Mexican economy and offshore exploration programs; |
• | political instability in oil and gas producing countries; |
• | technical advances affecting energy consumption; |
• | government policies regarding the exploration, production and development of oil and gas reserves; |
• | the ability of oil and gas producers to raise equity capital and debt financing; |
• | merger and divestiture activity among oil and gas companies and seismic contractors; and |
• | compliance by members of the Organization of the Petroleum Exporting Countries (“OPEC”) and non-OPEC members such as Russia, with recent agreements to cut oil production. |
• | we may have difficulty satisfying our obligations with respect to our outstanding debt; |
• | we may have difficulty obtaining financing in the future for working capital, capital expenditures, acquisitions or other purposes; |
• | we may need to use all, or a substantial portion, of our available cash flow to pay interest and principal on our debt, which will reduce the amount of money available to finance our operations and other business activities; |
• | our vulnerability to general economic downturns and adverse industry conditions could increase; |
• | our flexibility in planning for, or reacting to, changes in our business and in our industry in general could be limited; |
• | our amount of debt and the amount we must pay to service our debt obligations could place us at a competitive disadvantage compared to our competitors that have less debt; |
• | our customers may react adversely to our significant debt level and seek or develop alternative licensors or suppliers; |
• | we may have insufficient funds, and our debt level may also restrict us from raising the funds necessary to repurchase all of the Notes, as defined below, tendered to us upon the occurrence of a change of control, which would constitute an event of default under the Notes; and |
• | our failure to comply with the restrictive covenants in our debt instruments which, among other things, limit our ability to incur debt and sell assets, could result in an event of default that, if not cured or waived, could have a material adverse effect on our business or prospects. |
• | Seismic data acquisition activities in marine ocean bottom areas are subject to the risk of downtime or reduced productivity, as well as to the risks of loss to property and injury to personnel, mechanical failures and natural disasters. In addition to losses caused by human errors and accidents, we may also become subject to losses resulting from, among other things, political instability, business interruption, strikes and weather events; and |
• | OceanGeo’s equipment and services may expose us to litigation and legal proceedings, including those related to product liability, personal injury and contract liability. |
• | increased costs associated with the operation of the business and the management of geographically dispersed operations; |
• | OceanGeo’s cash flows may be inadequate to fund its capital requirements, thereby requiring additional contributions to OceanGeo by us; |
• | OceanGeo’s cash flows may be inadequate to realize the value of equipment manufactured by our Devices group and transferred to OceanGeo for use in its ocean bottom seismic surveys; |
• | risks associated with our Calypso ocean bottom product that is intended to be utilized by OceanGeo in its operations, including risks that the new technology may not perform as well as we anticipate; |
• | difficulties in retaining and integrating key technical, sales and marketing personnel and the possible loss of such employees and costs associated with their loss; |
• | the diversion of management’s attention and other resources from other business operations and related concerns; |
• | the requirement to maintain uniform standards, controls and procedures; |
• | our inability to realize operating efficiencies, cost savings or other benefits that we expect from OceanGeo’s operations; and |
• | difficulties and delays in securing new business and customer projects. |
• | incur additional indebtedness; |
• | create liens; |
• | pay dividends and make other distributions in respect of our capital stock; |
• | redeem our capital stock; |
• | make investments or certain other restricted payments; |
• | sell certain kinds of assets; |
• | enter into transactions with affiliates; and |
• | effect mergers or consolidations. |
• | limit our ability to plan for or react to market or economic conditions or meet capital needs or otherwise restrict our activities or business plans; and |
• | adversely affect our ability to finance our operations, acquisitions, investments or strategic alliances or other capital needs or to engage in other business activities that would be in our interest. |
• | future competition from more established companies entering the market; |
• | technology obsolescence; |
• | dependence upon continued growth of the market for seismic data processing; |
• | the rate of change in the markets for these segments’ technology and services; |
• | further consolidation of the participants within this market; |
• | research and development efforts not proving sufficient to keep up with changing market demands; |
• | dependence on third-party software for inclusion in these segments’ services and products; |
• | misappropriation of these segments’ technology by other companies; |
• | alleged or actual infringement of intellectual property rights that could result in substantial additional costs; |
• | difficulties inherent in forecasting sales for newly developed technologies or advancements in technologies; |
• | recruiting, training and retaining technically skilled, experienced personnel that could increase the costs for these segments, or limit their growth; and |
• | the ability to maintain traditional margins for certain of their technology or services. |
• | We may not fully recover our costs of acquiring and processing seismic data through future sales. The ultimate amounts involved in these data sales are uncertain and depend on a variety of factors, many of which are beyond our control. |
• | The timing of these sales is unpredictable and can vary greatly from period to period. The costs of each survey are capitalized and then amortized as a percentage of sales and/or on a straight-line basis over the expected useful life of the data. This amortization will affect our earnings and, when combined with the sporadic nature of sales, will result in increased earnings volatility. |
• | Regulatory changes that affect companies’ ability to drill, either generally or in a specific location where we have acquired seismic data, could materially adversely affect the value of the seismic data contained in our library. Technology changes could also make existing data sets obsolete. Additionally, each of our individual surveys has a limited book life based on its location and oil and gas companies’ interest in prospecting for reserves in such location, so a particular survey may be subject to a significant decline in value beyond our initial estimates. |
• | The value of our multi-client data could be significantly adversely affected if any material adverse change occurs in the general prospects for oil and gas exploration, development and production activities. |
• | The cost estimates upon which we base our pre-commitments of funding could be wrong. The result could be losses that have a material adverse effect on our financial condition and results of operations. These pre-commitments of funding are subject to the creditworthiness of our clients. In the event that a client refuses or is unable to pay its commitment, we could incur a substantial loss on that project. |
• | As part of our asset-light strategy, we routinely charter vessels from third-party vendors to acquire seismic data for our multi-client business. As a result, our cost to acquire our multi-client data could significantly increase if vessel charter prices rise materially. |
• | disruption of E&P activities; |
• | restriction on the movement and exchange of funds; |
• | inhibition of our ability to collect advances and receivables; |
• | enactment of additional or stricter U.S. government or international sanctions; |
• | limitation of our access to markets for periods of time; |
• | expropriation and nationalization of assets of our company or those of our customers; |
• | political and economic instability, which may include armed conflict and civil disturbance; |
• | currency fluctuations, devaluations and conversion restrictions; |
• | confiscatory taxation or other adverse tax policies; and |
• | governmental actions that may result in the deprivation of our contractual rights. |
• | operating results that vary from the expectations of securities analysts and investors; |
• | factors influencing the levels of global oil and natural gas exploration and exploitation activities, such as the decline in crude oil prices and depressed prices for natural gas in North America or disasters such as the Deepwater Horizon incident in the Gulf of Mexico in 2010; |
• | the operating and securities price performance of companies that investors or analysts consider comparable to us; |
• | actions by rating agencies related to the Notes; |
• | announcements of strategic developments, acquisitions and other material events by us or our competitors; and |
• | changes in global financial markets and global economies and general market conditions, such as interest rates, commodity and equity prices and the value of financial assets. |
• | authorizing the issuance of “blank check” preferred stock without any need for action by stockholders; |
• | providing for a classified board of directors with staggered terms; |
• | requiring supermajority stockholder voting to effect certain amendments to our certificate of incorporation and bylaws; |
• | eliminating the ability of stockholders to call special meetings of stockholders; |
• | prohibiting stockholder action by written consent; and |
• | establishing advance notice requirements for nominations for election to the board of directors or for proposing matters that can be acted on by stockholders at stockholder meetings. |
Operating Facilities | Square Footage | Segment | ||
Houston, Texas | 226,000 | Global Headquarters, E&P Technology & Services and Ocean Bottom Services | ||
Harahan, Louisiana | 150,000 | Devices group within E&P Operations Optimization | ||
Edinburgh, Scotland | 16,000 | Optimization Software & Services group within E&P Operations Optimization | ||
Chertsey, England | 19,000 | E&P Technology & Services | ||
Jebel Ali, Dubai, United Arab Emirates | 1,000 | International Sales Headquarters | ||
412,000 |
Price Range | |||||||
Period | High (1) | Low (1) | |||||
Year ended December 31, 2016: | |||||||
Fourth Quarter | $ | 8.40 | $ | 5.65 | |||
Third Quarter | 6.99 | 4.73 | |||||
Second Quarter | 9.65 | 5.45 | |||||
First Quarter | 9.50 | 5.10 | |||||
Year ended December 31, 2015: | |||||||
Fourth Quarter | $ | 12.15 | $ | 3.90 | |||
Third Quarter | 21.75 | 5.55 | |||||
Second Quarter | 37.20 | 15.60 | |||||
First Quarter | 43.05 | 31.50 |
Period | (a) Total Number of Shares Acquired | (b) Average Price Paid Per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Program | (d) Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Program | ||||||
October 1, 2016 to October 31, 2016 | — | $ | — | Not applicable | Not applicable | |||||
November 1, 2016 to November 30, 2016 | — | $ | — | Not applicable | Not applicable | |||||
December 1, 2016 to December 31, 2016 | 1,707 | $ | 7.40 | Not applicable | Not applicable | |||||
Total | 1,707 | $ | 7.40 |
Years Ended December 31, | |||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||||||
(In thousands) | |||||||||||||||||||
Cost of sales: | |||||||||||||||||||
Write-down of multi-client data library | $ | — | $ | (399 | ) | $ | (100,100 | ) | $ | (5,461 | ) | $ | — | ||||||
Write-down of excess and obsolete inventory | $ | (429 | ) | $ | (151 | ) | $ | (6,952 | ) | $ | (21,197 | ) | $ | (1,326 | ) | ||||
Operating expenses: | |||||||||||||||||||
Impairment of goodwill and intangible assets | $ | — | $ | — | $ | (23,284 | ) | $ | — | $ | — | ||||||||
Write-down of receivables | $ | — | $ | — | $ | (8,214 | ) | $ | (9,157 | ) | $ | (5,640 | ) | ||||||
Write-down of marine equipment | $ | — | $ | — | $ | — | $ | — | $ | (5,928 | ) | ||||||||
Other income (expense): | |||||||||||||||||||
Reversal of (accrual for) loss contingency related to legal proceedings | $ | 1,168 | $ | 101,978 | $ | 69,557 | $ | (183,327 | ) | $ | (10,000 | ) | |||||||
Gain on sale of Source product line | $ | — | $ | — | $ | 6,522 | $ | — | $ | — | |||||||||
Gain on sale of cost method investments | $ | — | $ | — | $ | 5,463 | $ | 3,591 | $ | — | |||||||||
Gain on legal settlements | $ | — | $ | — | $ | — | $ | — | $ | 30,895 | |||||||||
Recovery of INOVA bad debts | $ | 3,983 | $ | — | $ | — | $ | — | $ | — | |||||||||
Loss on bond exchange | $ | (2,182 | ) | ||||||||||||||||
Equity in earnings (losses) of investments | $ | — | $ | — | $ | (49,485 | ) | $ | (42,320 | ) | $ | 297 | |||||||
Conversion payment of preferred stock | $ | — | $ | — | $ | — | $ | (5,000 | ) | $ | — |
Years Ended December 31, | ||||||||||||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
(In thousands, except for per share data) | ||||||||||||||||||||
Statement of Operations Data: | ||||||||||||||||||||
Net revenues | $ | 172,808 | $ | 221,513 | $ | 509,558 | $ | 549,167 | $ | 526,317 | ||||||||||
Gross profit | 36,032 | 8,003 | 62,223 | 159,313 | 215,801 | |||||||||||||||
Income (loss) from operations | (43,171 | ) | (100,632 | ) | (117,929 | ) | 16,396 | 74,527 | ||||||||||||
Net income (loss) applicable to common shares | (65,148 | ) | (25,122 | ) | (128,252 | ) | (251,874 | ) | 61,963 | |||||||||||
Net income (loss) per basic share | $ | (5.71 | ) | $ | (2.29 | ) | $ | (11.72 | ) | $ | (23.84 | ) | $ | 5.97 | ||||||
Net income (loss) per diluted share | $ | (5.71 | ) | $ | (2.29 | ) | $ | (11.72 | ) | $ | (23.84 | ) | $ | 5.71 | ||||||
Weighted average number of common shares outstanding | 11,400 | 10,957 | 10,939 | 10,567 | 10,387 | |||||||||||||||
Weighted average number of diluted shares outstanding | 11,400 | 10,957 | 10,939 | 10,567 | 10,851 | |||||||||||||||
Balance Sheet Data (end of year): | ||||||||||||||||||||
Working capital | $ | 16,555 | $ | 93,160 | $ | 222,099 | $ | 248,857 | $ | 164,693 | ||||||||||
Total assets | 313,216 | 435,088 | 617,257 | 864,671 | 820,583 | |||||||||||||||
Long-term debt | 158,790 | 182,992 | 190,594 | 220,152 | 105,328 | |||||||||||||||
Total equity | 53,398 | 112,040 | 135,712 | 257,885 | 499,019 | |||||||||||||||
Other Data: | ||||||||||||||||||||
Investment in multi-client library | $ | 14,884 | $ | 45,558 | $ | 67,785 | $ | 114,582 | $ | 145,627 | ||||||||||
Capital expenditures | 1,488 | 19,241 | 8,264 | 16,914 | 16,650 | |||||||||||||||
Depreciation and amortization (other than multi-client library) | 21,975 | 26,527 | 27,656 | 18,158 | 16,202 | |||||||||||||||
Amortization of multi-client library | 33,335 | 35,784 | 64,374 | 86,716 | 89,080 |
Brent Crude (per bbl) | West Texas Intermediate Crude (per bbl) | Henry Hub Natural Gas (per mcf) | |||||||||||||||||||||
Quarter ended | High | Low | High | Low | High | Low | |||||||||||||||||
12/31/2016 | $ | 54.96 | $ | 41.61 | $ | 54.01 | $ | 43.29 | $ | 3.80 | $ | 2.08 | |||||||||||
9/30/2016 | $ | 49.66 | $ | 40.00 | $ | 49.02 | $ | 39.50 | $ | 3.19 | $ | 2.67 | |||||||||||
6/30/2016 | $ | 50.73 | $ | 35.88 | $ | 51.23 | $ | 34.30 | $ | 2.94 | $ | 1.71 | |||||||||||
3/31/2016 | $ | 40.54 | $ | 26.01 | $ | 41.45 | $ | 26.19 | $ | 2.54 | $ | 1.49 | |||||||||||
12/31/2015 | $ | 52.13 | $ | 35.26 | $ | 49.67 | $ | 34.55 | $ | 2.54 | $ | 1.63 | |||||||||||
9/30/2015 | $ | 61.73 | $ | 41.59 | $ | 56.94 | $ | 38.22 | $ | 2.93 | $ | 2.47 | |||||||||||
6/30/2015 | $ | 66.33 | $ | 55.73 | $ | 61.36 | $ | 49.13 | $ | 3.04 | $ | 2.50 | |||||||||||
3/31/2015 | $ | 61.89 | $ | 45.13 | $ | 53.56 | $ | 43.39 | $ | 3.32 | $ | 2.62 | |||||||||||
Source: U.S. Energy Information Administration (EIA). |
Total debt extinguished | $ | 146,503 | ||
Carrying amount of debt issuance cost | (2,376 | ) | ||
Net carrying amount of debt | 144,127 | |||
New Second Lien Notes issued in exchange | 120,569 | |||
Cash paid | 15,000 | |||
Common stock issued | 10,740 | (a) | ||
Total consideration issued in exchange | 146,309 | |||
Loss on bond exchange | $ | (2,182 | ) |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In thousands) | |||||||||||
Net revenues: | |||||||||||
E&P Technology & Services: | |||||||||||
New Venture | $ | 27,362 | $ | 48,294 | $ | 98,649 | |||||
Data Library | 39,989 | 63,326 | 66,180 | ||||||||
Total multi-client revenues | 67,351 | 111,620 | 164,829 | ||||||||
Imaging Services | 25,538 | 45,630 | 113,075 | ||||||||
Total | $ | 92,889 | $ | 157,250 | $ | 277,904 | |||||
E&P Operations Optimization: | |||||||||||
Devices | $ | 26,746 | $ | 36,269 | $ | 88,417 | |||||
Optimization Software & Services | 16,756 | 27,994 | 39,993 | ||||||||
Total | $ | 43,502 | $ | 64,263 | $ | 128,410 | |||||
Ocean Bottom Services | $ | 36,417 | $ | — | $ | 103,244 | |||||
Total | $ | 172,808 | $ | 221,513 | $ | 509,558 |
Year Ended December 31, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 | |||||||||||||||||||||||||||||||||
As Reported | Restructuring and Other Charges | As Adjusted | As Reported | Restructuring and Other Charges | As Adjusted | As Reported | Restructuring and Other Charges | As Adjusted | |||||||||||||||||||||||||||
Gross profit: | |||||||||||||||||||||||||||||||||||
E&P Technology & Services | $ | 4,708 | $ | 766 | $ | 5,474 | $ | 13,508 | $ | 3,193 | $ | 16,701 | $ | (24,345 | ) | $ | 100,825 | (e) | $ | 76,480 | |||||||||||||||
E&P Operations Optimization | 21,745 | 188 | 21,933 | 33,995 | 536 | 34,531 | 66,951 | 7,717 | (f) | 74,668 | |||||||||||||||||||||||||
Ocean Bottom Services | 9,579 | 123 | 9,702 | (39,500 | ) | 252 | (39,248 | ) | 19,617 | — | 19,617 | ||||||||||||||||||||||||
Total | $ | 36,032 | $ | 1,077 | (a) | $ | 37,109 | $ | 8,003 | $ | 3,981 | (c) | $ | 11,984 | $ | 62,223 | $ | 108,542 | $ | 170,765 | |||||||||||||||
Gross margin: | |||||||||||||||||||||||||||||||||||
E&P Technology & Services | 5 | % | 1 | % | 6 | % | 9 | % | 2 | % | 11 | % | (9 | )% | 37 | % | 28 | % | |||||||||||||||||
E&P Operations Optimization | 50 | % | — | % | 50 | % | 53 | % | 1 | % | 54 | % | 52 | % | 6 | % | 58 | % | |||||||||||||||||
Ocean Bottom Services | 26 | % | — | % | 27 | % | — | % | — | % | — | % | 19 | % | — | % | 19 | % | |||||||||||||||||
Total | 21 | % | — | % | 21 | % | 4 | % | 1 | % | 5 | % | 12 | % | 22 | % | 34 | % | |||||||||||||||||
Income (loss) from operations: | |||||||||||||||||||||||||||||||||||
E&P Technology & Services | $ | (16,446 | ) | $ | 1,128 | $ | (15,318 | ) | $ | (24,941 | ) | $ | 4,295 | $ | (20,646 | ) | $ | (80,653 | ) | $ | 102,740 | (e) | $ | 22,087 | |||||||||||
E&P Operations Optimization | 9,652 | 197 | 9,849 | 20,131 | 1,790 | 21,921 | 20,201 | 32,715 | (f) | 52,916 | |||||||||||||||||||||||||
Ocean Bottom Services | (1,756 | ) | 504 | (1,252 | ) | (55,080 | ) | 252 | (54,828 | ) | (4,440 | ) | — | (4,440 | ) | ||||||||||||||||||||
Support and other | (34,621 | ) | 180 | (34,441 | ) | (40,742 | ) | 877 | (39,865 | ) | (53,037 | ) | 6,487 | (g) | (46,550 | ) | |||||||||||||||||||
Total | $ | (43,171 | ) | $ | 2,009 | (a) | $ | (41,162 | ) | $ | (100,632 | ) | $ | 7,214 | (c) | $ | (93,418 | ) | $ | (117,929 | ) | $ | 141,942 | $ | 24,013 | ||||||||||
Operating margin: | |||||||||||||||||||||||||||||||||||
E&P Technology & Services | (18 | )% | 2 | % | (16 | )% | (16 | )% | 3 | % | (13 | )% | (29 | )% | 37 | % | 8 | % | |||||||||||||||||
E&P Operations Optimization | 22 | % | 1 | % | 23 | % | 31 | % | 3 | % | 34 | % | 16 | % | 25 | % | 41 | % | |||||||||||||||||
Ocean Bottom Services | (5 | )% | 2 | % | (3 | )% | — | % | — | % | — | % | (4 | )% | — | % | (4 | )% | |||||||||||||||||
Support and other | (20 | )% | — | % | (20 | )% | (18 | )% | — | % | (18 | )% | (10 | )% | 1 | % | (9 | )% | |||||||||||||||||
Total | (25 | )% | 1 | % | (24 | )% | (45 | )% | 3 | % | (42 | )% | (23 | )% | 28 | % | 5 | % | |||||||||||||||||
Net income (loss) applicable to common shares | $ | (65,148 | ) | $ | (960 | ) | (b) | $ | (66,108 | ) | $ | (25,122 | ) | $ | (93,587 | ) | (d) | $ | (118,709 | ) | $ | (128,252 | ) | $ | 94,143 | (h) | $ | (34,102 | ) | ||||||
Diluted net income (loss) per common share (1) | $ | (5.71 | ) | $ | (0.09 | ) | $ | (5.80 | ) | $ | (2.29 | ) | $ | (8.54 | ) | $ | (10.83 | ) | $ | (11.72 | ) | $ | 8.60 | $ | (3.12 | ) |
(a) | Represents severance and facility charges related to the Company’s 2016 restructuring. | |||
(b) | Represents a $3.0 million recovery of INOVA bad debts, partially offset by item (a). | |||
(c) | Represents severance and facility charges related to the Company’s 2015 restructuring. | |||
(d) | In addition to item (a), also impacting net income (loss) applicable to common shares was a reduction in the WesternGeco legal contingency by $102.0 million. | |||
(e) | Primarily relates to the write-down of our multi-client data library in 2014 within the E&P Technology & Services segment. Also, 2014 was impacted by the impairment of intangible assets and severance-related charges. | |||
(f) | Primarily relates to the write-down of goodwill, impacting income (loss) from operations, in addition to inventory write-downs, impacting gross profit (loss), and severance-related charges within the Devices group within our E&P Operations Optimization segment. | |||
(g) | Represents the write-down of receivables from INOVA Geophysical, in addition to severance related charges. | |||
(h) | In addition to items (d), (e) and (f), also impacting net income (loss) applicable to common shares was (i) the full write-down of our equity method investment in INOVA Geophysical of $30.7 million, in addition to our share of charges related to excess and obsolete inventory and customer bad debts of $3.5 million, (ii) a reduction in the WesternGeco legal contingency by $69.6 million, and (iii) non-recurring gains on the sale of a cost method investment of $5.5 million and on the sale of the Source product line of $6.5 million (before tax). | |||
Year Ended December 31, 2016 | Year Ended December 31, 2015 | ||||||||||||||||||||||
As Reported | Special Items(a) | As Adjusted | As Reported | Special Items(b) | As Adjusted | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research, development and engineering | $ | 17,833 | $ | (397 | ) | $ | 17,436 | $ | 26,445 | $ | (603 | ) | $ | 25,842 | |||||||||
Marketing and sales | 17,371 | (262 | ) | 17,109 | 30,493 | (304 | ) | 30,189 | |||||||||||||||
General, administrative and other operating expenses | 43,999 | (273 | ) | 43,726 | 51,697 | (2,326 | ) | 49,371 | |||||||||||||||
Total operating expenses | $ | 79,203 | $ | (932 | ) | $ | 78,271 | $ | 108,635 | $ | (3,233 | ) | $ | 105,402 | |||||||||
Income (loss) from operations | $ | (43,171 | ) | $ | 2,009 | $ | (41,162 | ) | $ | (100,632 | ) | $ | 7,214 | $ | (93,418 | ) |
(a) | Includes severance affecting operating expenses. |
(b) | Includes severance affecting operating expenses and facility abandonment charges. |
Years Ended December 31, | |||||||
2016 | 2015 | ||||||
Reduction of loss contingency related to legal proceedings (Footnote 7) | $ | 1,168 | $ | 101,978 | |||
Recovery of INOVA bad debts | 3,983 | — | |||||
Loss on bond exchange | (2,182 | ) | |||||
Other expense | (1,619 | ) | (3,703 | ) | |||
Total other income | $ | 1,350 | $ | 98,275 | |||
Year Ended December 31, 2015 | Year Ended December 31, 2014 | ||||||||||||||||||||||
As Reported | Special Items(a) | As Adjusted | As Reported | Special Items(b) | As Adjusted | ||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research, development and engineering | $ | 26,445 | $ | (603 | ) | $ | 25,842 | $ | 41,009 | $ | (572 | ) | $ | 40,437 | |||||||||
Marketing and sales | 30,493 | (304 | ) | 30,189 | 39,682 | (326 | ) | 39,356 | |||||||||||||||
General, administrative and other operating expenses | 51,697 | (2,326 | ) | 49,371 | 76,177 | (9,218 | ) | 66,959 | |||||||||||||||
Impairment of goodwill and intangible assets | — | — | — | 23,284 | (23,284 | ) | — | ||||||||||||||||
Total operating expenses | $ | 108,635 | $ | (3,233 | ) | $ | 105,402 | $ | 180,152 | $ | (33,400 | ) | $ | 146,752 | |||||||||
Income (loss) from operations | $ | (100,632 | ) | $ | 7,214 | $ | (93,418 | ) | $ | (117,929 | ) | $ | 141,942 | $ | 24,013 |
(a) | Includes severance affecting operating expenses and facility abandonment charges. |
(b) | Includes (i) the write-down of goodwill related to our Devices reporting unit, (ii) the write-down of intangible assets, (iii) the write-down of receivables related to INOVA Geophysical and other customer bad debt, and (iv) severance charges affecting operating expense lines. |
Years Ended December 31, | |||||||
2015 | 2014 | ||||||
Reduction of loss contingency related to legal proceedings (Footnote 7) | $ | 101,978 | $ | 69,557 | |||
Gain on sale of a product line(1) | — | 6,522 | |||||
Gain on sale of a cost method investment(2) | — | 5,463 | |||||
Other expense | (3,703 | ) | (1,682 | ) | |||
Total other income | $ | 98,275 | $ | 79,860 |
(1) | In 2014, we sold our Source product line for approximately $14.4 million, net of transaction fees, recording a gain of approximately $6.5 million before taxes. The historical results of this product line have not been material to our results of operations. |
(2) | Includes the 2014 sale of our cost method investment in a privately-owned U.S.-based technology company for total proceeds of approximately $16.5 million, of which $14.1 million was due and paid at closing. |
Date | Percentage | |
2015 | 104.063% | |
2016 | 102.031% | |
2017 and thereafter | 100.000% |
Date | Percentage | |
2019 | 105.500% | |
2020 | 103.500% | |
2021 and thereafter | 100.000% |
Contractual Obligations | Total | Less Than 1 Year | 1-3 Years | 3-5 Years | More Than 5 Years | ||||||||||||||
Long-term debt | $ | 149,066 | $ | — | $ | 28,497 | $ | 120,569 | $ | — | |||||||||
Interest on long-term debt obligations | 59,693 | 13,609 | 34,854 | 11,230 | — | ||||||||||||||
Revolver credit facility | 10,000 | 10,000 | — | ||||||||||||||||
Equipment capital lease obligations | 3,446 | 3,166 | 280 | — | — | ||||||||||||||
Operating leases | 78,118 | 10,947 | 29,164 | 29,860 | 8,147 | ||||||||||||||
Purchase obligations | 1,197 | 1,197 | — | — | — | ||||||||||||||
Total | $ | 301,520 | $ | 38,919 | $ | 92,795 | $ | 161,659 | $ | 8,147 |
(i) | pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of our company; |
(ii) | provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of our company are being made only in accordance with authorizations of our management and directors; and |
(iii) | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements. |
3.1 | — | Restated Certificate of Incorporation, as amended, filed on November 3, 2016 as Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q and incorporated by reference. | ||
3.2 | — | Amended and Restated Bylaws of ION Geophysical Corporation filed on September 24, 2007 as Exhibit 3.5 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
3.3 | — | Certificate of Ownership and Merger merging ION Geophysical Corporation with and into Input/Output, Inc. dated September 21, 2007, filed on September 24, 2007 as Exhibit 3.1 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
4.1 | — | Certificate of Rights and Designations of Series D-1 Cumulative Convertible Preferred Stock, dated February 16, 2005 and filed on February 17, 2005 as Exhibit 3.1 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
4.2 | — | Certificate of Elimination of Series B Preferred Stock dated September 24, 2007, filed on September 24, 2007 as Exhibit 3.2 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
4.3 | — | Certificate of Elimination of Series C Preferred Stock dated September 24, 2007, filed on September 24, 2007 as Exhibit 3.3 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
4.4 | — | Certificate of Designation of Series D-2 Cumulative Convertible Preferred Stock dated December 6, 2007, filed on December 6, 2007 as Exhibit 3.1 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
4.5 | — | Certificate of Designations of Series A Junior Participating Preferred Stock of ION Geophysical Corporation effective as of December 31, 2008, filed on January 5, 2009 as Exhibit 3.1 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
4.6 | — | Certificate of Elimination of Series A Junior Participating Preferred Stock dated February 10, 2012, filed on February 13, 2012 as Exhibit 3.1 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. | ||
4.7 | — | Indenture, dated May 13, 2013, among ION Geophysical Corporation, the subsidiary guarantors named therein, Wilmington Trust, National Association, as trustee, and U.S. Bank National Association, as collateral agent, filed on May 13, 2013 as Exhibit 4.1 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
4.8 | — | Registration Rights Agreement, dated May 13, 2013, among ION Geophysical Corporation, the subsidiary guarantors named therein and Citigroup Global Markets Inc. and Wells Fargo Securities, LLC, as representatives of the initial purchasers named therein, filed on May 13, 2013 as Exhibit 4.2 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
4.9 | — | Certificate of Elimination of Series D-1 Cumulative Convertible Preferred Stock dated September 30, 2013, filed on September 30, 2013 as Exhibit 3.1 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
4.10 | — | Certificate of Elimination of Series D-2 Cumulative Convertible Preferred Stock dated September 30, 2013, filed on September 30, 2013 as Exhibit 3.2 to the Company’s Current Report on Form 8-K and incorporated herein by reference. |
**10.1 | — | Amended and Restated 1990 Stock Option Plan, filed on June 9, 1999 as Exhibit 4.2 to the Company’s Registration Statement on Form S-8 (Registration No. 333-80299), and incorporated herein by reference. | ||
10.2 | — | Office and Industrial/Commercial Lease dated June 2005 by and between Stafford Office Park II, LP as Landlord and Input/Output, Inc. as Tenant, filed on March 31, 2006 as Exhibit 10.2 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2005, and incorporated herein by reference. | ||
10.3 | — | Office and Industrial/Commercial Lease dated June 2005 by and between Stafford Office Park District as Landlord and Input/Output, Inc. as Tenant, filed on March 31, 2006 as Exhibit 10.3 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2005, and incorporated herein by reference. | ||
**10.4 | — | Input/Output, Inc. Amended and Restated 1996 Non-Employee Director Stock Option Plan, filed on June 9, 1999 as Exhibit 4.3 to the Company’s Registration Statement on Form S-8 (Registration No. 333-80299), and incorporated herein by reference. | ||
**10.5 | — | Amendment No. 1 to the Input/Output, Inc. Amended and Restated 1996 Non-Employee Director Stock Option Plan dated September 13, 1999 filed on November 14, 1999 as Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended August 31, 1999 and incorporated herein by reference. | ||
**10.6 | — | Input/Output, Inc. Employee Stock Purchase Plan, filed on March 28, 1997 as Exhibit 4.4 to the Company’s Registration Statement on Form S-8 (Registration No. 333-24125), and incorporated herein by reference. | ||
**10.7 | — | Fifth Amended and Restated - 2004 Long-Term Incentive Plan, filed as Appendix A to the definitive proxy statement for the 2010 Annual Meeting of Stockholders of ION Geophysical Corporation, filed on April 21, 2010, and incorporated herein by reference. | ||
10.8 | — | Registration Rights Agreement dated as of November 16, 1998, by and among the Company and The Laitram Corporation, filed on March 12, 2004 as Exhibit 10.7 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2003, and incorporated herein by reference. | ||
**10.9 | — | Input/Output, Inc. 1998 Restricted Stock Plan dated as of June 1, 1998, filed on June 9, 1999 as Exhibit 4.7 to the Company’s Registration Statement on S-8 (Registration No. 333-80297), and incorporated herein by reference. | ||
**10.10 | — | Input/Output Inc. Non-qualified Deferred Compensation Plan, filed on April 1, 2002 as Exhibit 10.14 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2001, and incorporated herein by reference. | ||
**10.11 | — | Input/Output, Inc. 2000 Restricted Stock Plan, effective as of March 13, 2000, filed on August 17, 2000 as Exhibit 10.27 to the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2000, and incorporated herein by reference. | ||
**10.12 | — | Input/Output, Inc. 2000 Long-Term Incentive Plan, filed on November 6, 2000 as Exhibit 4.7 to the Company’s Registration Statement on Form S-8 (Registration No. 333-49382), and incorporated by reference herein. | ||
**10.13 | — | Employment Agreement dated effective as of March 31, 2003, by and between the Company and Robert P. Peebler, filed on March 31, 2003 as Exhibit 10.1 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
**10.14 | — | First Amendment to Employment Agreement dated September 6, 2006, between Input/Output, Inc. and Robert P. Peebler, filed on September 7, 2006, as Exhibit 10.1 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. | ||
**10.15 | — | Second Amendment to Employment Agreement dated February 16, 2007, between Input/Output, Inc. and Robert P. Peebler, filed on February 16, 2007 as Exhibit 10.1 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. | ||
**10.16 | — | Third Amendment to Employment Agreement dated as of August 20, 2007 between Input/Output, Inc. and Robert P. Peebler, filed on August 21, 2007 as Exhibit 10.2 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
**10.17 | — | Fourth Amendment to Employment Agreement, dated as of January 26, 2009, between ION Geophysical Corporation and Robert P. Peebler, filed on January 29, 2009 as Exhibit 10.1 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
**10.18 | — | Employment Agreement dated effective as of June 15, 2004, by and between the Company and David L. Roland, filed on August 9, 2004 as Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2004, and incorporated herein by reference. | ||
**10.19 | — | GX Technology Corporation Employee Stock Option Plan, filed on August 9, 2004 as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2004, and incorporated herein by reference. |
10.20 | — | Concept Systems Holdings Limited Share Acquisition Agreement dated February 23, 2004, filed on March 5, 2004 as Exhibit 2.1 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. | ||
10.21 | — | Registration Rights Agreement by and between ION Geophysical Corporation and 1236929 Alberta Ltd. dated September 18, 2008, filed on November 7, 2008 as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q and incorporated herein by reference. | ||
**10.22 | — | Form of Employment Inducement Stock Option Agreement for the Input/Output, Inc. — Concept Systems Employment Inducement Stock Option Program, filed on July 27, 2004 as Exhibit 4.1 to the Company’s Registration Statement on Form S-8 (Reg. No. 333-117716), and incorporated herein by reference. | ||
**10.23 | — | Form of Employee Stock Option Award Agreement for ARAM Systems Employee Inducement Stock Option Program, filed on November 14, 2008 as Exhibit 4.4 to the Company’s Registration Statement on Form S-8 (Registration No. 333-155378) and incorporated herein by reference. | ||
**10.24 | — | Input/Output, Inc. 2003 Stock Option Plan, dated March 27, 2003, filed as Appendix B of the Company’s definitive proxy statement filed with the SEC on April 30, 2003, and incorporated herein by reference. | ||
**10.25 | — | Form of Employment Inducement Stock Option Agreement for the Input/Output, Inc. — GX Technology Corporation Employment Inducement Stock Option Program, filed on April 4, 2005 as Exhibit 4.1 to the Company’s Registration Statement on Form S-8 (Reg. No. 333-123831), and incorporated herein by reference. | ||
**10.26 | — | ION Stock Appreciation Rights Plan dated November 17, 2008, filed as Exhibit 10.47 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, and incorporated herein by reference. | ||
10.27 | — | Canadian Master Loan and Security Agreement dated as of June 29, 2009 by and among ICON ION, LLC, as lender, ION Geophysical Corporation and ARAM Rentals Corporation, a Nova Scotia corporation, filed on August 6, 2009 as Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2009, and incorporated herein by reference. | ||
10.28 | — | Master Loan and Security Agreement (U.S.) dated as of June 29, 2009 by and among ICON ION, LLC, as lender, ION Geophysical Corporation and ARAM Seismic Rentals, Inc., a Texas corporation, filed on August 6, 2009 as Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2009, and incorporated herein by reference. | ||
10.29 | — | Registration Rights Agreement dated as of October 23, 2009 by and between ION Geophysical Corporation and BGP Inc., China National Petroleum Corporation filed on March 1, 2010 as Exhibit 10.54 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2009, and incorporated herein by reference. | ||
10.30 | — | Stock Purchase Agreement dated as of March 19, 2010, by and between ION Geophysical Corporation and BGP Inc., China National Petroleum Corporation, filed on March 31, 2010 as Exhibit 10.1 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. | ||
10.31 | — | Investor Rights Agreement dated as of March 25, 2010, by and between ION Geophysical Corporation and BGP Inc., China National Petroleum Corporation, filed on March 31, 2010 as Exhibit 10.2 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. | ||
10.32 | — | Share Purchase Agreement dated as of March 24, 2010, by and among ION Geophysical Corporation, INOVA Geophysical Equipment Limited and BGP Inc., China National Petroleum Corporation, filed on March 31, 2010 as Exhibit 10.3 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. | ||
10.33 | — | Joint Venture Agreement dated as of March 24, 2010, by and between ION Geophysical Corporation and BGP Inc., China National Petroleum Corporation, filed on March 31, 2010 as Exhibit 10.4 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. | ||
**10.34 | — | Fifth Amendment to Employment Agreement dated June 1, 2010, between ION Geophysical Corporation and Robert P. Peebler, filed on June 1, 2010 as Exhibit 10.1 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. | ||
**10.35 | — | Employment Agreement dated August 2, 2011, effective as of January 1, 2012, between ION Geophysical Corporation and R. Brian Hanson, filed on November 3, 2011 as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2011, and incorporated herein by reference. | ||
**10.36 | — | Employment Agreement dated effective as of November 28, 2011, between ION Geophysical Corporation and Gregory J. Heinlein, filed on December 1, 2011 as Exhibit 10.1 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. | ||
**10.37 | — | First Amendment to Credit Agreement and Loan Documents dated May 29, 2012, filed on May 29, 2012 as Exhibit 10.1 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. |
**10.38 | — | Consulting Services Agreement dated January 1, 2013, between ION Geophysical Corporation and The Peebler Group LLC, filed on January 4, 2013 as Exhibit 10.1 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. | ||
*10.39 | — | Second Amended and Restated 2013 Long-Term Incentive Plan. | ||
10.40 | — | Purchase Agreement, dated May 8, 2013, among ION Geophysical Corporation, the subsidiary guarantors named therein and Citigroup Global Markets Inc. and Wells Fargo Securities, LLC, as representatives of the initial purchasers named therein, filed on May 13, 2013 as Exhibit 10.1 to the Company’s Current Report on Form 8-K and incorporated herein by reference | ||
10.41 | — | Second Lien Intercreditor Agreement by and among China Merchants Bank Co., Ltd., New York Branch, as administrative agent, first lien representative for the first lien secured parties and collateral agent for the first lien secured parties, Wilmington Trust Company, National Association, as trustee and second lien representative for the second lien secured parties, and U.S. Bank National Association, as collateral agent for the second lien secured parties, and acknowledged and agreed to by ION Geophysical Corporation and the other grantors named therein, filed on May 13, 2013 as Exhibit 10.2 to the Company’s Current Report on Form 8-K and incorporated herein by reference | ||
10.42 | — | Revolving Credit and Security Agreement dated as of August 22, 2014 among PNC Bank, National Association, as agent for lenders, the lenders from time to time party thereto, as lenders, and PNC Capital Markets LLC, as lead arranger and bookrunner, with ION Geophysical Corporation, ION Exploration Products (U.S.A.), Inc., I/O Marine Systems, Inc. and GX Technology Corporation, as borrowers, filed on November 6, 2014 as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2014, and incorporated herein by reference. | ||
**10.43 | — | Transition and Separation Agreement dated effective as of October 30, 2014, by and between ION Geophysical Corporation and Gregory J. Heinlein. | ||
**10.44 | — | Employment Agreement dated effective as of November 13, 2014, between ION Geophysical Corporation and Steve Bate. | ||
**10.45 | — | Form of Rights Agreement dated March 1, 2015 issued under the ION Stock Appreciation Rights Plan dated November 17, 2008, filed on May 7, 2015 as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2015, and incorporated herein by reference. | ||
10.46 | — | First Amendment to Revolving Credit and Security Agreement dated as of August 4, 2015 among PNC Bank, National Association, as lender and agent, the lenders from time to time party thereto, as lenders, with ION Geophysical Corporation, ION Exploration Products (U.S.A.), Inc., I/O Marine Systems, Inc. and GX Technology Corporation, as borrowers, filed on August 6, 2015 as Exhibit 10.1 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. | ||
*21.1 | — | Subsidiaries of the Company. | ||
*23.1 | — | Consent of Grant Thornton LLP. | ||
*24.1 | — | The Power of Attorney is set forth on the signature page hereof. | ||
*31.1 | — | Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a). | ||
*31.2 | — | Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a). | ||
*32.1 | — | Certification of Chief Executive Officer Pursuant to 18 U.S.C. §1350. | ||
*32.2 | — | Certification of Chief Financial Officer Pursuant to 18 U.S.C. §1350. | ||
*101 | — | The following materials are formatted in Extensible Business Reporting Language (XBRL): (i) Consolidated Balance Sheets at December 31, 2016 and 2015, (ii) Consolidated Statements of Operations for the years ended December 31, 2016, 2015 and 2014, (iii) Comprehensive Income (Loss) for the years ended December 31, 2016, 2015 and 2014, (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2016, 2015 and 2014, (v) Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2016, 2015 and 2014, (vi) Footnotes to Consolidated Financial Statements and (vii) Schedule II – Valuation and Qualifying Accounts. | ||
* | Filed herewith. | |||
** | Management contract or compensatory plan or arrangement. |
(b) | Exhibits required by Item 601 of Regulation S-K. |
Reference is made to subparagraph (a) (3) of this Item 15, which is incorporated herein by reference. | |
(c) | Not applicable. |
ION GEOPHYSICAL CORPORATION | |||
By | /s/ R. Brian Hanson | ||
R. Brian Hanson | |||
President and Chief Executive Officer |
Name | Capacities | Date | ||
/S/ R. BRIAN HANSON | President, Chief Executive Officer and Director (Principal Executive Officer) | February 9, 2017 | ||
R. Brian Hanson | ||||
/S/ STEVEN A. BATE | Executive Vice President and Chief Financial Officer (Principal Financial Officer) | February 9, 2017 | ||
Steven A. Bate | ||||
/S/ SCOTT SCHWAUSCH | Vice President and Corporate Controller (Principal Accounting Officer) | February 9, 2017 | ||
Scott Schwausch | ||||
/S/ JAMES M. LAPEYRE, JR. | Chairman of the Board of Directors and Director | February 9, 2017 | ||
James M. Lapeyre, Jr. | ||||
/S/ DAVID H. BARR | Director | February 9, 2017 | ||
David H. Barr | ||||
/S/ HAO HUIMIN | Director | February 9, 2017 | ||
Hao Huimin |
Name | Capacities | Date | ||
/S/ MICHAEL C. JENNINGS | Director | February 9, 2017 | ||
Michael C. Jennings | ||||
/S/ FRANKLIN MYERS | Director | February 9, 2017 | ||
Franklin Myers | ||||
/S/ S. JAMES NELSON, JR. | Director | February 9, 2017 | ||
S. James Nelson, Jr. | ||||
/S/ JOHN N. SEITZ | Director | February 9, 2017 | ||
John N. Seitz |
December 31, | |||||||
2016 | 2015 | ||||||
(In thousands, except share data) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 52,652 | $ | 84,933 | |||
Accounts receivable, net | 20,770 | 44,365 | |||||
Unbilled receivables | 13,415 | 19,937 | |||||
Inventories | 15,241 | 32,721 | |||||
Prepaid expenses and other current assets | 9,559 | 14,807 | |||||
Total current assets | 111,637 | 196,763 | |||||
Property, plant, equipment and seismic rental equipment, net | 67,488 | 72,027 | |||||
Multi-client data library, net | 105,935 | 132,237 | |||||
Goodwill | 22,208 | 26,274 | |||||
Intangible assets, net | 3,103 | 4,810 | |||||
Other assets | 2,845 | 2,977 | |||||
Total assets | $ | 313,216 | $ | 435,088 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Current maturities of long-term debt | $ | 14,581 | $ | 7,912 | |||
Accounts payable | 26,889 | 29,799 | |||||
Accrued expenses | 26,240 | 34,287 | |||||
Accrued multi-client data library royalties | 23,663 | 25,045 | |||||
Deferred revenue | 3,709 | 6,560 | |||||
Total current liabilities | 95,082 | 103,603 | |||||
Long-term debt, net of current maturities | 144,209 | 175,080 | |||||
Other long-term liabilities | 20,527 | 44,365 | |||||
Total liabilities | 259,818 | 323,048 | |||||
Equity: | |||||||
Common stock, $0.01 par value; authorized 26,666,667 shares; outstanding 11,792,447 and 10,702,689 shares at December 31, 2016 and 2015, respectively, net of treasury stock | 118 | 107 | |||||
Additional paid-in capital | 899,198 | 894,715 | |||||
Accumulated deficit | (824,679 | ) | (759,531 | ) | |||
Accumulated other comprehensive loss | (21,748 | ) | (14,781 | ) | |||
Treasury stock, at cost, zero and 353,124 shares at December 31, 2016 and 2015 respectively | — | (8,551 | ) | ||||
Total stockholders’ equity | 52,889 | 111,959 | |||||
Noncontrolling interests | 509 | 81 | |||||
Total equity | 53,398 | 112,040 | |||||
Total liabilities and equity | $ | 313,216 | $ | 435,088 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In thousands, except per share data) | |||||||||||
Service revenues | $ | 130,640 | $ | 160,480 | $ | 384,938 | |||||
Product revenues | 42,168 | 61,033 | 124,620 | ||||||||
Total net revenues | 172,808 | 221,513 | 509,558 | ||||||||
Cost of services | 115,763 | 179,816 | 278,627 | ||||||||
Cost of products | 21,013 | 33,295 | 68,608 | ||||||||
Impairment of multi-client data library | — | 399 | 100,100 | ||||||||
Gross profit | 36,032 | 8,003 | 62,223 | ||||||||
Operating expenses: | |||||||||||
Research, development and engineering | 17,833 | 26,445 | 41,009 | ||||||||
Marketing and sales | 17,371 | 30,493 | 39,682 | ||||||||
General, administrative and other operating expenses | 43,999 | 51,697 | 76,177 | ||||||||
Impairment of goodwill and intangible assets | — | — | 23,284 | ||||||||
Total operating expenses | 79,203 | 108,635 | 180,152 | ||||||||
Loss from operations | (43,171 | ) | (100,632 | ) | (117,929 | ) | |||||
Interest expense, net | (18,485 | ) | (18,753 | ) | (19,382 | ) | |||||
Equity in losses of investments | — | — | (49,485 | ) | |||||||
Other income | 1,350 | 98,275 | 79,860 | ||||||||
Loss before income taxes | (60,306 | ) | (21,110 | ) | (106,936 | ) | |||||
Income tax expense | 4,421 | 4,044 | 20,582 | ||||||||
Net loss | (64,727 | ) | (25,154 | ) | (127,518 | ) | |||||
Net (income) loss attributable to noncontrolling interests | (421 | ) | 32 | (734 | ) | ||||||
Net loss attributable to ION | $ | (65,148 | ) | $ | (25,122 | ) | $ | (128,252 | ) | ||
Net loss per share: | |||||||||||
Basic | $ | (5.71 | ) | $ | (2.29 | ) | $ | (11.72 | ) | ||
Diluted | $ | (5.71 | ) | $ | (2.29 | ) | $ | (11.72 | ) | ||
Weighted average number of common shares outstanding: | |||||||||||
Basic | 11,400 | 10,957 | 10,939 | ||||||||
Diluted | 11,400 | 10,957 | 10,939 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In thousands) | |||||||||||
Net loss | $ | (64,727 | ) | $ | (25,154 | ) | $ | (127,518 | ) | ||
Other comprehensive loss, net of taxes, as appropriate: | |||||||||||
Foreign currency translation adjustments | (6,967 | ) | (1,974 | ) | (882 | ) | |||||
Equity interest in investee’s other comprehensive loss | — | — | (841 | ) | |||||||
Unrealized gain on available-for-sale securities | — | — | 28 | ||||||||
Other changes in other comprehensive income | — | — | 26 | ||||||||
Total other comprehensive loss, net of taxes | (6,967 | ) | (1,974 | ) | (1,669 | ) | |||||
Comprehensive net loss | (71,694 | ) | (27,128 | ) | (129,187 | ) | |||||
Comprehensive (income) loss attributable to noncontrolling interests | (421 | ) | 32 | (734 | ) | ||||||
Comprehensive net loss attributable to ION | $ | (72,115 | ) | $ | (27,096 | ) | $ | (129,921 | ) |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
(In thousands) | |||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | (64,727 | ) | $ | (25,154 | ) | $ | (127,518 | ) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||||||
Depreciation and amortization (other than multi-client library) | 21,975 | 26,527 | 27,656 | ||||||||
Amortization of multi-client data library | 33,335 | 35,784 | 64,374 | ||||||||
Stock-based compensation expense | 3,267 | 5,486 | 8,707 | ||||||||
Reduction of loss contingency related to legal proceedings | (1,168 | ) | (101,978 | ) | (69,557 | ) | |||||
Equity in losses of investments | — | — | 49,485 | ||||||||
Gain on sale of Source product line | — | — | (6,522 | ) | |||||||
Gain on sale of cost method investments | — | — | (5,463 | ) | |||||||
Impairment of goodwill and intangible assets | — | — | 23,284 | ||||||||
Impairment of multi-client data library | — | 399 | 100,100 | ||||||||
Loss on bond exchange | 2,182 | — | — | ||||||||
Write-down of excess and obsolete inventory | 429 | 151 | 6,952 | ||||||||
Write-down of receivables from INOVA Geophysical | — | — | 5,510 | ||||||||
Deferred income taxes | (1,181 | ) | 7,444 | (437 | ) | ||||||
Change in operating assets and liabilities: | |||||||||||
Accounts receivable | 20,426 | 69,491 | 41,943 | ||||||||
Unbilled receivables | 6,543 | 1,630 | 26,762 | ||||||||
Inventories | 2,312 | 2,251 | (13,892 | ) | |||||||
Accounts payable, accrued expenses and accrued royalties | (5,085 | ) | (30,264 | ) | (4,771 | ) | |||||
Deferred revenue | (2,759 | ) | (1,571 | ) | (8,382 | ) | |||||
Other assets and liabilities | (13,978 | ) | (6,720 | ) | 11,549 | ||||||
Net cash provided by (used in) operating activities | 1,571 | (16,524 | ) | 129,780 | |||||||
Cash flows from investing activities: | |||||||||||
Investment in multi-client data library | (14,884 | ) | (45,558 | ) | (67,785 | ) | |||||
Purchase of property, plant, equipment and seismic rental equipment | (1,488 | ) | (19,241 | ) | (8,264 | ) | |||||
Repayment of (net advances to) INOVA Geophysical | — | — | 1,000 | ||||||||
Net investment in and advances to OceanGeo B.V. prior to its consolidation | — | — | (3,074 | ) | |||||||
Net proceeds from sale of Source product line | — | — | 14,394 | ||||||||
Proceeds from sale of cost method investments | 2,698 | — | 14,051 | ||||||||
Other investing activities | 30 | 1,263 | 928 | ||||||||
Net cash used in investing activities | (13,644 | ) | (63,536 | ) | (48,750 | ) | |||||
Cash flows from financing activities: | |||||||||||
Borrowings under revolving line of credit | 15,000 | — | 15,000 | ||||||||
Repayments under revolving line of credit | (5,000 | ) | — | (50,000 | ) | ||||||
Payments on notes payable and long-term debt | (8,634 | ) | (7,452 | ) | (12,998 | ) | |||||
Cost associated with issuance of debt | (6,744 | ) | (145 | ) | (2,194 | ) | |||||
Acquisition of non-controlling interest | — | — | (6,000 | ) | |||||||
Repurchase of common stock | (964 | ) | (1,989 | ) | — | ||||||
Payments to repurchase bonds | (15,000 | ) | — | — | |||||||
Other financing activities | (252 | ) | 73 | 218 | |||||||
Net cash used in financing activities | (21,594 | ) | (9,513 | ) | (55,974 | ) | |||||
Effect of change in foreign currency exchange rates on cash and cash equivalents | 1,386 | 898 | 496 | ||||||||
Net (decrease) increase in cash and cash equivalents | (32,281 | ) | (88,675 | ) | 25,552 | ||||||
Cash and cash equivalents at beginning of period | 84,933 | 173,608 | 148,056 | ||||||||
Cash and cash equivalents at end of period | $ | 52,652 | $ | 84,933 | $ | 173,608 |
Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | Noncontrolling Interests | Total Equity | ||||||||||||||||||||||||
(In thousands, except shares) | Shares | Amount | ||||||||||||||||||||||||||||
Balance at January 1, 2014 | 10,915,851 | $ | 109 | $ | 881,497 | $ | (606,157 | ) | $ | (11,138 | ) | $ | (6,565 | ) | $ | 139 | $ | 257,885 | ||||||||||||
Net loss (a) | — | — | — | (128,252 | ) | — | — | 18 | (128,234 | ) | ||||||||||||||||||||
Translation adjustment | — | — | — | — | (882 | ) | — | (58 | ) | (940 | ) | |||||||||||||||||||
Change in fair value of effective cash flow hedges (net of taxes) | — | — | — | — | 26 | — | — | 26 | ||||||||||||||||||||||
Equity interest in INOVA Geophysical’s other comprehensive loss | — | — | — | — | (841 | ) | — | — | (841 | ) | ||||||||||||||||||||
Unrealized gain (loss) on available-for-sale securities | — | — | — | — | 28 | — | — | 28 | ||||||||||||||||||||||
Stock-based compensation expense | — | — | 8,707 | — | — | — | — | 8,707 | ||||||||||||||||||||||
Exercise of stock options | 1,900 | — | 95 | — | — | — | — | 95 | ||||||||||||||||||||||
Vesting of restricted stock units/awards | 44,162 | 1 | (1 | ) | — | — | — | — | — | |||||||||||||||||||||
Restricted stock cancelled for employee minimum income taxes | (9,075 | ) | — | (350 | ) | — | — | — | — | (350 | ) | |||||||||||||||||||
Issuance of stock for the ESPP | 12,768 | — | 482 | — | — | — | — | 482 | ||||||||||||||||||||||
Tax benefits from stock-based compensation | — | — | (1,146 | ) | — | — | — | — | (1,146 | ) | ||||||||||||||||||||
Balance at December 31, 2014 | 10,965,606 | 110 | 889,284 | (734,409 | ) | (12,807 | ) | (6,565 | ) | 99 | 135,712 | |||||||||||||||||||
Net loss (a) | — | — | — | (25,122 | ) | — | — | 4 | (25,118 | ) | ||||||||||||||||||||
Translation adjustment | — | — | — | — | (1,974 | ) | — | (22 | ) | (1,996 | ) | |||||||||||||||||||
Stock-based compensation expense | — | — | 5,486 | — | — | — | — | 5,486 | ||||||||||||||||||||||
Vesting of restricted stock units/awards | 29,191 | — | — | — | — | — | — | — | ||||||||||||||||||||||
Purchase of treasury shares | (296,488 | ) | (3 | ) | — | — | — | (1,986 | ) | — | (1,989 | ) | ||||||||||||||||||
Restricted stock cancelled for employee minimum income taxes | (6,208 | ) | — | (126 | ) | — | — | — | — | (126 | ) | |||||||||||||||||||
Issuance of stock for the ESPP | 10,588 | — | 215 | — | — | — | — | 215 | ||||||||||||||||||||||
Purchase of subsidiary shares from noncontrolling interest | — | — | (144 | ) | — | — | — | — | (144 | ) | ||||||||||||||||||||
Balance at December 31, 2015 | 10,702,689 | 107 | 894,715 | (759,531 | ) | (14,781 | ) | (8,551 | ) | 81 | 112,040 | |||||||||||||||||||
Net loss | — | — | — | (65,148 | ) | — | — | 421 | (64,727 | ) | ||||||||||||||||||||
Translation adjustment | — | — | — | — | (6,967 | ) | — | 7 | (6,960 | ) | ||||||||||||||||||||
Stock-based compensation expense | — | — | 3,267 | — | — | — | — | 3,267 | ||||||||||||||||||||||
Vesting of restricted stock units/awards | 40,495 | — | — | — | — | — | — | — | ||||||||||||||||||||||
Purchase of treasury shares | (155,304 | ) | (1 | ) | — | — | — | (963 | ) | — | (964 | ) | ||||||||||||||||||
Restricted stock cancelled for employee minimum income taxes | (4,973 | ) | — | (22 | ) | — | — | — | — | (22 | ) | |||||||||||||||||||
Issuance of stock for the ESPP | 4,100 | — | 23 | — | — | — | — | 23 | ||||||||||||||||||||||
Issuance of stock in bond exchange | 1,205,440 | 12 | 1,215 | — | — | 9,514 | — | 10,741 | ||||||||||||||||||||||
Balance at December 31, 2016 | 11,792,447 | $ | 118 | $ | 899,198 | $ | (824,679 | ) | $ | (21,748 | ) | $ | — | $ | 509 | $ | 53,398 |
(a) | Net income attributable to noncontrolling interests for 2015 and 2014 excludes less than $(0.1) million and $0.7 million, respectively, related to the redeemable noncontrolling interests, which is reported in the mezzanine equity section of the Consolidated Balance Sheet. |
(b) | Except for 2016, the figures set forth in the tables above have been retroactively adjusted to reflect the one-for-fifteen reverse stock split completed on February 4,2016. |
Years | |
Machinery and equipment | 3-7 |
Buildings | 5-25 |
Seismic rental equipment | 3-5 |
Leased equipment and other | 3-10 |
December 31, | |||||||
2016 | 2015 | ||||||
Gross costs of multi-client data creation | $ | 906,306 | $ | 899,273 | |||
Less accumulated amortization | (680,770 | ) | (647,435 | ) | |||
Less impairments to multi-client data library | (119,601 | ) | (119,601 | ) | |||
Total | $ | 105,935 | $ | 132,237 |
Severance charges(a) | Loss on bond exchange(b) | Total | |||||||||
Cost of goods sold | $ | 1,077 | $ | — | $ | 1,077 | |||||
Operating expenses | 932 | — | 932 | ||||||||
Other expense | — | 2,182 | 2,182 | ||||||||
Consolidated total | $ | 2,009 | $ | 2,182 | $ | 4,191 |
(a) | Represents severance charges related to the second quarter 2016 restructurings. |
(b) | Represents a loss on exchange of bonds during the second quarter 2016. |
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. |
Multi-client data library, net | Equity method investments(a) | Goodwill and Intangible Assets(b) | Asset write-downs and other | Severance charges | Total | ||||||||||||||||||
Cost of goods sold | $ | 100,100 | $ | — | $ | — | $ | 8,051 | $ | 391 | $ | 108,542 | |||||||||||
Operating expenses | — | — | 23,284 | 8,214 | (c) | 1,902 | 33,400 | ||||||||||||||||
Equity in earnings (losses) of investments | — | 34,199 | — | — | — | 34,199 | |||||||||||||||||
Consolidated total | $ | 100,100 | $ | 34,199 | $ | 23,284 | $ | 16,265 | $ | 2,293 | $ | 176,141 | |||||||||||
(a) | Represents the full write-down of the Company’s equity method investment in INOVA Geophysical of $30.7 million, in addition to the Company’s share of charges related to excess and obsolete inventory and customer bad debts of $3.5 million. For a discussion of the Company’s impairment of its equity method investment, see Footnote 15 “Equity Method Investments” of the Footnotes to Consolidated Financial Statements contained elsewhere in this Annual Report on Form 10-K. |
(b) | Includes an impairment of the goodwill on the Company’s Devices reporting unit and an impairment of certain intangible assets. For a discussion of the impairment of the goodwill, see Footnote 10 “Goodwill.” For a discussion of the impairment of the intangible asset, see Footnote 9 “Details of Selected Balance Sheet Accounts.” |
(c) | Includes outstanding receivables from INOVA Geophysical of $5.5 million. |
• | E&P Technology & Services, formerly referred to as Solutions, continues to be comprised of the groups that support the Company’s New Venture and Data Library (together multi-client) revenues and Imaging Services group. |
• | E&P Operations Optimization is comprised of Devices, formerly referred to as Systems, and Optimization Software & Services, formerly referred to as Software. The manufacturing, engineering, research and development of ocean bottom systems is no longer a part of Devices, and are now within Ocean Bottom Services as noted below. |
• | Ocean Bottom Services is comprised of OceanGeo, an ocean bottom data acquisition services company along with the manufacturing, engineering, research and development of ocean bottom systems. |
Years Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Net revenues: | ||||||||||||
E&P Technology & Services: | ||||||||||||
New Venture | $ | 27,362 | $ | 48,294 | $ | 98,649 | ||||||
Data Library | 39,989 | 63,326 | 66,180 | |||||||||
Total multi-client revenues | 67,351 | 111,620 | 164,829 | |||||||||
Imaging Services | 25,538 | 45,630 | 113,075 | |||||||||
Total | $ | 92,889 | $ | 157,250 | $ | 277,904 | ||||||
E&P Operations Optimization: | ||||||||||||
Devices | $ | 26,746 | $ | 36,269 | $ | 88,417 | ||||||
Optimization Software & Services | 16,756 | 27,994 | 39,993 | |||||||||
Total | $ | 43,502 | $ | 64,263 | $ | 128,410 | ||||||
Ocean Bottom Services | $ | 36,417 | $ | — | $ | 103,244 | ||||||
Total | $ | 172,808 | $ | 221,513 | $ | 509,558 | ||||||
Gross profit (loss): | ||||||||||||
E&P Technology & Services | $ | 4,708 | $ | 13,508 | $ | (24,345 | ) | |||||
E&P Operations Optimization | 21,745 | 33,995 | 66,951 | |||||||||
Ocean Bottom Services | 9,579 | (39,500 | ) | 19,617 | ||||||||
Total | $ | 36,032 | $ | 8,003 | $ | 62,223 | ||||||
Gross margin: | ||||||||||||
E&P Technology & Services | 5 | % | 9 | % | (9 | )% | ||||||
E&P Operations Optimization | 50 | % | 53 | % | 52 | % | ||||||
Ocean Bottom Services | 26 | % | — | % | 19 | % | ||||||
Total | 21 | % | 4 | % | 12 | % | ||||||
Loss from operations: | ||||||||||||
E&P Technology & Services | $ | (16,446 | ) | $ | (24,941 | ) | $ | (80,653 | ) | (a) | ||
E&P Operations Optimization | 9,652 | 20,131 | 20,201 | (b) | ||||||||
Ocean Bottom Services | (1,756 | ) | (55,080 | ) | (4,440 | ) | ||||||
Support and other | (34,621 | ) | (40,742 | ) | (53,037 | ) | ||||||
Loss from operations | (43,171 | ) | (100,632 | ) | (117,929 | ) | ||||||
Interest expense, net | (18,485 | ) | (18,753 | ) | (19,382 | ) | ||||||
Equity in losses of investments | — | — | (49,485 | ) | ||||||||
Other income | 1,350 | 98,275 | 79,860 | |||||||||
Loss before income taxes | $ | (60,306 | ) | $ | (21,110 | ) | $ | (106,936 | ) |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Depreciation and amortization (including multi-client data library): | |||||||||||
E&P Technology & Services | $ | 44,100 | $ | 51,014 | $ | 80,138 | |||||
E&P Operations Optimization | 1,780 | 2,869 | 2,849 | ||||||||
Ocean Bottom Services | 7,511 | 6,158 | 6,517 | ||||||||
Support and other | 1,919 | 2,270 | 2,526 | ||||||||
Total | $ | 55,310 | $ | 62,311 | $ | 92,030 |
December 31, | |||||||
2016 | 2015 | ||||||
Total assets: | |||||||
E&P Technology & Services | $ | 159,965 | $ | 243,067 | |||
E&P Operations Optimization | 76,992 | 98,161 | |||||
Ocean Bottom Services | 29,908 | 35,792 | |||||
Support and other | 46,351 | 58,068 | |||||
Total | $ | 313,216 | $ | 435,088 |
December 31, | |||||||
2016 | 2015 | ||||||
Total assets by geographic area: | |||||||
North America | $ | 145,013 | $ | 225,847 | |||
Europe | 61,329 | 84,392 | |||||
Middle East | 72,984 | 75,390 | |||||
Latin America | 23,891 | 35,349 | |||||
Other | 9,999 | 14,110 | |||||
Total | $ | 313,216 | $ | 435,088 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Net revenues by geographic area: | |||||||||||
Europe | $ | 41,674 | $ | 72,577 | $ | 100,188 | |||||
Africa | 41,417 | 13,182 | 75,507 | ||||||||
North America | 38,005 | 74,634 | 130,224 | ||||||||
Latin America | 24,090 | 16,406 | 111,078 | ||||||||
Asia Pacific | 16,226 | 19,135 | 49,881 | ||||||||
Middle East | 9,467 | 14,571 | 39,142 | ||||||||
Commonwealth of Independent States | 1,929 | 11,008 | 3,538 | ||||||||
Total | $ | 172,808 | $ | 221,513 | $ | 509,558 |
December 31, | |||||||
Obligations (in thousands) | 2016 | 2015 | |||||
Senior secured second-priority lien notes (maturing December 15, 2021) | $ | 120,569 | $ | — | |||
Senior secured third-priority lien notes (maturing May 15, 2018) | 28,497 | 175,000 | |||||
Revolving credit facility | 10,000 | — | |||||
Equipment capital leases | 3,446 | 9,762 | |||||
Other debt | 1,415 | 1,558 | |||||
Costs associated with issuances of debt (1) | (5,137 | ) | (3,328 | ) | |||
Total | 158,790 | 182,992 | |||||
Current portion of long-term debt and lease obligations | (14,581 | ) | (7,912 | ) | |||
Non-current portion of long-term debt and lease obligations | $ | 144,209 | $ | 175,080 |
(1) | Represents debt issuance costs presented as a direct deduction from the carrying amount of the associated debt liability. |
• | increased the applicable margin for loans by 0.50% per annum (from 2.50% per annum to 3.00% per annum for alternate base rate loans and from 3.50% per annum to 4.00% per annum for LIBOR-based loans); |
• | increased the minimum excess availability threshold to avoid triggering the agent’s rights to exercise dominion over cash and deposit accounts and increases certain of the thresholds upon which such dominion ceases; |
• | increased the minimum liquidity threshold to avoid triggering the Company’s obligation to calculate and comply with the existing fixed charge coverage ratio and increased certain of the thresholds upon which such required calculation and compliance cease; |
• | established a reserve that reduced the amount available to be borrowed by the aggregate amount owing under all Third Lien Notes that remain outstanding (if any) on or after February 14, 2018 (i.e., 90 days prior to the stated maturity of the Third Lien Notes); |
• | increased the maximum amount of certain permitted junior indebtedness to $200.0 million (from $175.0 million); |
• | incorporated technical and conforming changes to reflect that the Second Lien Notes and the remaining Third Lien Notes (and any permitted refinancing thereof or subsequently incurred replacement indebtedness meeting certain requirements) constitute permitted indebtedness; |
• | clarified the circumstances and mechanics under which the Company may prepay, repurchase or redeem the Second Lien Notes, the remaining Third Lien Notes and certain other junior indebtedness; |
• | modified the cross-default provisions to incorporated defaults under the Second Lien Notes, the remaining Third Lien Notes and certain other junior indebtedness; and |
• | eliminated the potential early commitment termination date and early maturity date that would otherwise have occurred ninety (90) days prior the maturity date of the Third Lien Notes if any of the Third Lien Notes then remained outstanding. |
Date | Percentage | |
2015 | 104.063% | |
2016 | 102.031% | |
2017 and thereafter | 100.000% |
Date | Percentage | |
2019 | 105.500% | |
2020 | 103.500% | |
2021 and thereafter | 100.000% |
Years Ended December 31, | Long-Term Debt | Capital Lease Obligations | Other Financing | Total | ||||||||||||
2017 | $ | 10,000 | $ | 3,166 | $ | 1,415 | $ | 14,581 | ||||||||
2018 | 28,497 | 251 | — | 28,748 | ||||||||||||
2019 | — | 29 | — | 29 | ||||||||||||
2020 | — | — | — | — | ||||||||||||
2021 | 120,569 | — | — | 120,569 | ||||||||||||
Thereafter | — | — | — | — | ||||||||||||
Total | $ | 159,066 | $ | 3,446 | $ | 1,415 | $ | 163,927 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Domestic | $ | (41,246 | ) | $ | 21,065 | $ | (162,151 | ) | |||
Foreign | (19,060 | ) | (42,175 | ) | 55,215 | ||||||
Total | $ | (60,306 | ) | $ | (21,110 | ) | $ | (106,936 | ) |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Current: | |||||||||||
Federal | $ | — | $ | (4,715 | ) | $ | (678 | ) | |||
State and local | 28 | 41 | (42 | ) | |||||||
Foreign | 5,574 | 1,274 | 21,722 | ||||||||
Deferred: | |||||||||||
Federal | — | 2,726 | 1,004 | ||||||||
Foreign | (1,181 | ) | 4,718 | (1,424 | ) | ||||||
Total income tax expense | $ | 4,421 | $ | 4,044 | $ | 20,582 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Expected income tax expense at 35% | $ | (21,107 | ) | $ | (7,389 | ) | $ | (37,428 | ) | ||
Foreign tax rate differential | 5,932 | 1,769 | (10,481 | ) | |||||||
Foreign tax differences | (4,828 | ) | 4,104 | 6,444 | |||||||
State and local taxes | 28 | 41 | (42 | ) | |||||||
Nondeductible expenses | (259 | ) | 578 | (1,584 | ) | ||||||
Goodwill impairment | — | — | 9,444 | ||||||||
Expired Capital Loss | 1,321 | 15,950 | — | ||||||||
Valuation allowance: | |||||||||||
Valuation allowance on equity in losses of INOVA Geophysical | — | — | 17,644 | ||||||||
Valuation allowance on expiring capital losses | (1,321 | ) | (15,950 | ) | — | ||||||
Valuation allowance on operations | 24,655 | 4,941 | 36,585 | ||||||||
Total income tax expense | $ | 4,421 | $ | 4,044 | $ | 20,582 |
December 31, | |||||||
2016 | 2015 | ||||||
Non-current deferred: | |||||||
Deferred income tax assets: | |||||||
Accrued expenses | $ | 2,994 | $ | 2,976 | |||
Allowance Accounts | 4,861 | 6,739 | |||||
Net operating loss carryforward | 98,896 | 95,640 | |||||
Capital loss carryforward | 1,114 | 2,434 | |||||
Equity method investment | 58,820 | 58,820 | |||||
Original issue discount | 17,924 | — | |||||
Basis in identified intangibles | 15,286 | 5,978 | |||||
Tax credit carryforwards | 7,051 | 7,051 | |||||
Contingency accrual | — | 7,700 | |||||
Other | 10,755 | 12,138 | |||||
Total non-current deferred income tax asset | 217,701 | 199,476 | |||||
Valuation allowance | (217,589 | ) | (194,255 | ) | |||
Net non-current deferred income tax asset | 112 | 5,221 | |||||
Deferred income tax liabilities: | |||||||
Other | (1,240 | ) | — | ||||
Unbilled receivables | (1,908 | ) | (6,516 | ) | |||
Basis in property, plant and equipment | (531 | ) | (3,439 | ) | |||
Total net non-current deferred income tax liability | $ | (3,567 | ) | $ | (4,734 | ) |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Beginning balance | $ | 1,250 | $ | 1,957 | $ | 2,219 | |||||
Increases in unrecognized tax benefits – prior year positions | — | — | — | ||||||||
Increases in unrecognized tax benefits – current year positions | 49 | 75 | 263 | ||||||||
Decreases in unrecognized tax benefits – prior year position | — | (782 | ) | (525 | ) | ||||||
Ending balance | $ | 1,299 | $ | 1,250 | $ | 1,957 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Reduction of (accrual for) loss contingency related to legal proceedings (Footnote 7) | $ | 1,168 | $ | 101,978 | $ | 69,557 | |||||
Gain on sale of a product line(1) | — | — | 6,522 | ||||||||
Gain on sale of cost method investments(2) | — | — | 5,463 | ||||||||
Recovery of INOVA bad debts | 3,983 | — | — | ||||||||
Loss on bond exchange | (2,182 | ) | — | — | |||||||
Other income | (1,619 | ) | (3,703 | ) | (1,682 | ) | |||||
Total other income | $ | 1,350 | $ | 98,275 | $ | 79,860 |
(1) | In 2014, the Company sold its Source product line for $14.4 million, net of transaction fees, recording a gain of approximately $6.5 million before taxes. The historical results of this product line have not been material to the Company’s results of operations. |
(2) | Includes the 2014 sale of the Company’s cost method investment in a privately-owned U.S.-based technology company for total proceeds of approximately $16.5 million, of which $14.1 million was due and paid at closing and the remainder in 2016. |
A summary of accounts receivable follows (in thousands): | December 31, | ||||||
2016 | 2015 | ||||||
Accounts receivable, principally trade | $ | 22,214 | $ | 49,284 | |||
Less allowance for doubtful accounts | (1,444 | ) | (4,919 | ) | |||
Accounts receivable, net | $ | 20,770 | $ | 44,365 |
A summary of inventories follows (in thousands): | December 31, | ||||||
2016 | 2015 | ||||||
Raw materials and purchased subassemblies | $ | 21,454 | $ | 34,949 | |||
Work-in-process | 2,255 | 8,478 | |||||
Finished goods | 6,581 | 13,769 | |||||
Reserve for excess and obsolete inventories | (15,049 | ) | (24,475 | ) | |||
Total (a) | $ | 15,241 | $ | 32,721 |
(a) | For 2016, inventories, net, decreased primarily due to the transfer of $17.7 million of inventory to property, plant, equipment and seismic rental equipment, net, primarily related to ocean bottom equipment to be used on future Ocean Bottom Services contracts. |
December 31, | |||||||
2016 | 2015 | ||||||
Buildings | $ | 17,424 | $ | 24,181 | |||
Machinery and equipment (a) | 157,618 | 152,358 | |||||
Seismic rental equipment | 1,557 | 1,904 | |||||
Furniture and fixtures | 3,905 | 4,334 | |||||
Other | 30,049 | 31,821 | |||||
Total | 210,553 | 214,598 | |||||
Less accumulated depreciation | (143,065 | ) | (142,571 | ) | |||
Property, plant, equipment and seismic rental equipment, net | $ | 67,488 | $ | 72,027 |
(a) | In 2016, the company transferred $17.7 million of Ocean Bottom equipment from inventory to machinery and equipment. |
A summary of intangible assets, net, follows (in thousands): | December 31, 2016 | ||||||||||
Gross Amount | Accumulated Amortization | Net | |||||||||
Customer relationships | $ | 36,934 | $ | (33,831 | ) | $ | 3,103 | ||||
Total | $ | 36,934 | $ | (33,831 | ) | $ | 3,103 |
December 31, 2015 | |||||||||||
Gross Amount | Accumulated Amortization | Net | |||||||||
Customer relationships | $ | 37,469 | $ | (32,659 | ) | $ | 4,810 | ||||
Total | $ | 37,469 | $ | (32,659 | ) | $ | 4,810 |
Years Ended December 31, | |||
2017 | $ | 1,436 | |
2018 | $ | 1,169 | |
2019 | $ | 498 |
A summary of accrued expenses follows (in thousands): | December 31, | ||||||
2016 | 2015 | ||||||
Compensation, including compensation-related taxes and commissions | $ | 14,935 | $ | 19,126 | |||
Accrued multi-client data library acquisition costs | 567 | 1,600 | |||||
Income tax payable | 1,306 | — | |||||
Other | 9,432 | 13,561 | |||||
Total | $ | 26,240 | $ | 34,287 |
A summary of other long-term liabilities follows (in thousands): | December 31, | ||||||
2016 | 2015 | ||||||
Accrual for loss contingency related to legal proceedings (Footnote 7) | $ | — | $ | 22,000 | |||
Deferred lease liabilities | 13,955 | 13,394 | |||||
Facility restructuring accrual | 1,765 | 3,006 | |||||
Deferred income tax liability | 3,679 | 4,734 | |||||
Other | 1,128 | 1,231 | |||||
Total | $ | 20,527 | $ | 44,365 |
E&P Technology & Services | Optimization Software & Services | Total | |||||||||
Balance at January 1, 2015 | $ | 2,943 | $ | 24,445 | $ | 27,388 | |||||
Impact of foreign currency translation adjustments | — | (1,114 | ) | (1,114 | ) | ||||||
Balance at December 31, 2015 | 2,943 | 23,331 | 26,274 | ||||||||
Impact of foreign currency translation adjustments | — | (4,066 | ) | (4,066 | ) | ||||||
Balance at December 31, 2016 | $ | 2,943 | $ | 19,265 | $ | 22,208 |
Option Price per Share | Outstanding | Vested | Available for Grant | ||||||||
January 1, 2014 | $42.45-$245.85 | 550,567 | 305,698 | 334,762 | |||||||
Plan Expiration | — | — | — | (4,452 | ) | ||||||
Granted | 37.05-62.55 | 115,760 | — | (115,760 | ) | ||||||
Vested | — | — | 92,750 | — | |||||||
Exercised | 45 | (1,900 | ) | (1,900 | ) | — | |||||
Cancelled/forfeited | 45.00-231.45 | (65,358 | ) | (38,158 | ) | 14,453 | |||||
Restricted stock granted out of option plans | — | — | — | (48,503 | ) | ||||||
Restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans | — | — | — | 2,968 | |||||||
December 31, 2014 | 37.05-245.85 | 599,069 | 358,390 | 183,468 | |||||||
Granted | 34.2 | 53,328 | — | (53,328 | ) | ||||||
Vested | — | — | 79,779 | — | |||||||
Exercised | — | — | — | — | |||||||
Cancelled/forfeited | 37.05-231.45 | (91,600 | ) | (53,864 | ) | 12,358 | |||||
Restricted stock granted out of option plans | — | — | — | (45,652 | ) | ||||||
Restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans | — | — | — | 157 | |||||||
December 31, 2015 | 34.20-245.85 | 560,797 | 384,305 | 97,003 | |||||||
Increase in shares authorized | — | — | — | 1,150,940 | |||||||
Granted | 3.1 | 415,000 | — | (415,000 | ) | ||||||
Vested | — | — | 67,480 | — | |||||||
Exercised | — | — | — | — | |||||||
Cancelled/forfeited | 3.1-245.85 | (128,162 | ) | (103,432 | ) | 18,895 | |||||
Restricted stock granted out of option plans | — | — | — | (259,300 | ) | ||||||
Restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans | — | — | — | 7,182 | |||||||
December 31, 2016 | $3.1-$245.85 | 847,635 | 348,353 | 599,720 |
Option Price per Share | Outstanding | Weighted Average Exercise Price of Outstanding Options | Weighted Average Remaining Contract Life | Vested | Weighted Average Exercise Price of Vested Options | ||||||||||
$3.10 - $57.90 | 557,438 | $ | 15.00 | 6.9 years | 94,050 | $ | 50.09 | ||||||||
$61.05 - $71.85 | 79,230 | $ | 62.12 | 6.7 years | 45,154 | $ | 62.88 | ||||||||
$81.60 - $99.60 | 119,296 | $ | 88.73 | 5.5 years | 117,478 | $ | 88.61 | ||||||||
$106.05 - $245.85 | 91,671 | $ | 166.89 | 3.1 years | 91,671 | $ | 166.89 | ||||||||
Totals | 847,635 | $ | 46.21 | 6.1 years | 348,353 | $ | 95.48 |
Number of Shares | Weighted Average Exercise Price | Weighted Average Grant Date Fair Value | Weighted Average Remaining Contractual Life | Aggregate Intrinsic Value (000’s) | ||||||||||||
Total outstanding at January 1, 2016 | 560,797 | $ | 89.74 | 6.0 years | ||||||||||||
Options granted | 415,000 | $ | 3.10 | $ | 2.04 | |||||||||||
Options exercised | — | $ | — | |||||||||||||
Options cancelled | (24,730 | ) | $ | 37.68 | ||||||||||||
Options forfeited | (103,432 | ) | $ | 111.34 | ||||||||||||
Total outstanding at December 31, 2016 | 847,635 | $ | 46.21 | 6.1 years | $ | 1,175 | ||||||||||
Options exercisable and vested at December 31, 2016 | 348,353 | $ | 95.48 | 5.8 years | $ | — |
Number of Shares/Units | ||
Total nonvested at January 1, 2016 | 73,627 | |
Granted | 259,300 | |
Vested | (40,421 | ) |
Forfeited | (7,198 | ) |
Total nonvested at December 31, 2016 | 285,308 |
December 31, 2016 | |
Risk-free interest rates | 1.81% |
Expected lives (in years) | 4.0 |
Expected dividend yield | —% |
Expected volatility | 70.99% |
December 31, 2015 | |
Risk-free interest rates | 2.19% |
Expected lives (in years) | 3.3 |
Expected dividend yield | —% |
Expected volatility | 69.38% |
Years Ended December 31, | |||||
2016 | 2015 | 2014 | |||
Risk-free interest rates | 1.3% | 1.38% | 1.6% – 1.7% | ||
Expected lives (in years) | 5.5 | 4.5 | 5.5 | ||
Expected dividend yield | —% | —% | —% | ||
Expected volatility | 78.76% | 59.32% | 65.9% – 70.5% |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Stock-based compensation expense | $ | 3,267 | $ | 5,486 | $ | 8,707 | |||||
Tax benefit related thereto | (1,168 | ) | (1,826 | ) | (2,908 | ) | |||||
Stock-based compensation expense, net of tax | $ | 2,099 | $ | 3,660 | $ | 5,799 |
Years Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | 15,691 | $ | 15,441 | $ | 16,582 | |||||
Income taxes | 4,474 | 8,163 | 16,124 | ||||||||
Non-cash items from investing and financing activities: | |||||||||||
Purchase of computer equipment financed through capital leases | — | 1,178 | 12,153 | ||||||||
Leasehold improvement paid by landlord | 955 | — | — | ||||||||
Conversion of the Company's investment in a convertible note to equity | — | — | 3,151 | ||||||||
Issuance of stock in bond exchange | 10,741 | — | — | ||||||||
Transfer of inventory to property, plant and equipment | 17,662 | (a) | 15,936 | (b) | 10,149 | ||||||
Investment in multi-client data library financed through trade payables | — | 8,939 | — | ||||||||
Purchases of property, plant, and equipment and seismic rental equipment financed through accounts payable | — | — | 472 |
(a) | This transfer of $17.7 million of inventory to property, plant, equipment and seismic rental equipment in December 2016, relates to ocean bottom seismic equipment manufactured by the Company to be deployed in the acquisition of ocean bottom seismic data. |
(b) | 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 twelve months ended December 31, 2015, the Company purchased approximately $19.2 million of property, plant, equipment and seismic rental equipment, including approximately $15.3 million related to the manufacture of ocean bottom seismic equipment that will be used by the Ocean Bottom Services segment. |
Years Ending December 31, | |||
2017 | $ | 10,947 | |
2018 | 9,676 | ||
2019 | 9,656 | ||
2020 | 9,832 | ||
2021 | 10,017 | ||
Total | $ | 50,128 |
Pro forma Consolidated ION Income Statement Information (Unaudited) | December 31, | |||
2014 | ||||
Net revenues | $ | 518,742 | ||
Loss from operations | $ | (114,346 | ) | |
Net loss | $ | (126,492 | ) | |
Net loss applicable to common shares | $ | (127,226 | ) | |
Basic and diluted net loss per common share | $ | (11.70 | ) |
Three Months Ended | |||||||||||||||
Year Ended December 31, 2016 | March 31 | June 30 | September 30 | December 31 | |||||||||||
Service revenues | $ | 13,156 | $ | 25,430 | $ | 65,914 | $ | 26,140 | |||||||
Product revenues | 9,509 | 10,722 | 12,708 | 9,229 | |||||||||||
Total net revenues | 22,665 | 36,152 | 78,622 | 35,369 | |||||||||||
Gross profit (loss) | (8,930 | ) | 4,853 | 31,765 | 8,344 | ||||||||||
Income (loss) from operations | (30,129 | ) | (16,588 | ) | 11,864 | (8,318 | ) | ||||||||
Interest expense, net | (4,734 | ) | (4,702 | ) | (4,607 | ) | (4,442 | ) | |||||||
Other income (expense) | 120 | (1,717 | ) | (2,027 | ) | 4,974 | |||||||||
Income tax expense (benefit) | 293 | 2,256 | 3,316 | (1,444 | ) | ||||||||||
Net (income) loss attributable to noncontrolling interests | 22 | (79 | ) | (215 | ) | (149 | ) | ||||||||
Net income (loss) applicable to ION | $ | (35,014 | ) | $ | (25,342 | ) | $ | 1,699 | $ | (6,491 | ) | ||||
Net income (loss) per share: | |||||||||||||||
Basic | $ | (3.30 | ) | $ | (2.22 | ) | $ | 0.14 | $ | (0.55 | ) | ||||
Diluted | $ | (3.30 | ) | $ | (2.22 | ) | $ | 0.14 | $ | (0.55 | ) |
Three Months Ended | |||||||||||||||
Year Ended December 31, 2015 | March 31 | June 30 | September 30 | December 31 | |||||||||||
Service revenues | $ | 20,080 | $ | 23,323 | $ | 53,515 | $ | 63,562 | |||||||
Product revenues | 20,498 | 13,472 | 13,159 | 13,904 | |||||||||||
Total net revenues | 40,578 | 36,795 | 66,674 | 77,466 | |||||||||||
Gross profit (loss) | (15,788 | ) | (10,135 | ) | 11,108 | 22,818 | |||||||||
Loss from operations | (46,689 | ) | (40,689 | ) | (12,874 | ) | (380 | ) | |||||||
Interest expense, net | (4,625 | ) | (4,607 | ) | (4,854 | ) | (4,667 | ) | |||||||
Other income (expense) | (3,219 | ) | 101,600 | (346 | ) | 240 | |||||||||
Income tax expense | 983 | 532 | 2,082 | 447 | |||||||||||
Net (income) loss attributable to noncontrolling interests | 252 | 297 | (227 | ) | (290 | ) | |||||||||
Net income (loss) applicable to ION | $ | (55,264 | ) | $ | 56,069 | $ | (20,383 | ) | $ | (5,544 | ) | ||||
Net income (loss) per share: | |||||||||||||||
Basic | $ | (5.04 | ) | $ | 5.11 | $ | (1.86 | ) | $ | (0.51 | ) | ||||
Diluted | $ | (5.04 | ) | $ | 5.11 | $ | (1.86 | ) | $ | (0.51 | ) |
• | ION Geophysical Corporation and the guarantor subsidiaries (in each case, reflecting investments in subsidiaries utilizing the equity method of accounting). |
• | All other nonguarantor subsidiaries. |
• | The consolidating adjustments necessary to present ION Geophysical Corporation’s results on a consolidated basis. |
December 31, 2016 | |||||||||||||||||||
Balance Sheet | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | ||||||||||||||
(In thousands) | |||||||||||||||||||
ASSETS | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 23,042 | $ | — | $ | 29,610 | $ | — | $ | 52,652 | |||||||||
Accounts receivable, net | — | 12,775 | 7,995 | — | 20,770 | ||||||||||||||
Unbilled receivables | — | 5,275 | 8,140 | — | 13,415 | ||||||||||||||
Inventories | — | 8,610 | 6,631 | — | 15,241 | ||||||||||||||
Prepaid expenses and other current assets | 3,387 | 4,624 | 1,548 | — | 9,559 | ||||||||||||||
Total current assets | 26,429 | 31,284 | 53,924 | — | 111,637 | ||||||||||||||
Property, plant, equipment and seismic rental equipment, net | 1,745 | 12,369 | 53,374 | — | 67,488 | ||||||||||||||
Multi-client data library, net | — | 97,369 | 8,566 | — | 105,935 | ||||||||||||||
Investment in subsidiaries | 660,880 | 257,732 | — | (918,612 | ) | — | |||||||||||||
Goodwill | — | — | 22,208 | — | 22,208 | ||||||||||||||
Intangible assets, net | — | 3,008 | 95 | — | 3,103 | ||||||||||||||
Intercompany receivables | — | — | 32,174 | (32,174 | ) | — | |||||||||||||
Other assets | 2,469 | 145 | 231 | — | 2,845 | ||||||||||||||
Total assets | $ | 691,523 | $ | 401,907 | $ | 170,572 | $ | (950,786 | ) | $ | 313,216 | ||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Current maturities of long-term debt | $ | 11,281 | $ | 3,166 | $ | 134 | $ | — | $ | 14,581 | |||||||||
Accounts payable | 2,101 | 19,720 | 5,068 | — | 26,889 | ||||||||||||||
Accrued expenses | 8,579 | 10,016 | 7,645 | — | 26,240 | ||||||||||||||
Accrued multi-client data library royalties | — | 23,663 | — | — | 23,663 | ||||||||||||||
Deferred revenue | — | 2,667 | 1,042 | — | 3,709 | ||||||||||||||
Total current liabilities | 21,961 | 59,232 | 13,889 | — | 95,082 | ||||||||||||||
Long-term debt, net of current maturities | 143,930 | 279 | — | — | 144,209 | ||||||||||||||
Intercompany payables | 472,276 | 10,155 | — | (482,431 | ) | — | |||||||||||||
Other long-term liabilities | 467 | 12,117 | 7,943 | — | 20,527 | ||||||||||||||
Total liabilities | 638,634 | 81,783 | 21,832 | (482,431 | ) | 259,818 | |||||||||||||
Equity: | |||||||||||||||||||
Common stock | 118 | 290,460 | 19,138 | (309,598 | ) | 118 | |||||||||||||
Additional paid-in capital | 899,198 | 180,700 | 232,590 | (413,290 | ) | 899,198 | |||||||||||||
Accumulated earnings (deficit) | (824,679 | ) | 216,730 | (3,639 | ) | (213,091 | ) | (824,679 | ) | ||||||||||
Accumulated other comprehensive income (loss) | (21,748 | ) | 4,420 | (21,787 | ) | 17,367 | (21,748 | ) | |||||||||||
Due from ION Geophysical Corporation | — | (372,186 | ) | (78,071 | ) | 450,257 | — | ||||||||||||
Total stockholders’ equity | 52,889 | 320,124 | 148,231 | (468,355 | ) | 52,889 | |||||||||||||
Noncontrolling interests | — | — | 509 | — | 509 | ||||||||||||||
Total equity | 52,889 | 320,124 | 148,740 | (468,355 | ) | 53,398 | |||||||||||||
Total liabilities and equity | $ | 691,523 | $ | 401,907 | $ | 170,572 | $ | (950,786 | ) | $ | 313,216 |
December 31, 2015 | |||||||||||||||||||
Balance Sheet | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | ||||||||||||||
(In thousands) | |||||||||||||||||||
ASSETS | |||||||||||||||||||
Current assets: | |||||||||||||||||||
Cash and cash equivalents | $ | 33,734 | $ | — | $ | 51,199 | $ | — | $ | 84,933 | |||||||||
Accounts receivable, net | — | 35,133 | 9,232 | — | 44,365 | ||||||||||||||
Unbilled receivables | — | 19,046 | 891 | — | 19,937 | ||||||||||||||
Inventories | — | 10,939 | 21,782 | — | 32,721 | ||||||||||||||
Prepaid expenses and other current assets | 5,435 | 1,458 | 7,914 | — | 14,807 | ||||||||||||||
Total current assets | 39,169 | 66,576 | 91,018 | — | 196,763 | ||||||||||||||
Property, plant, equipment and seismic rental equipment, net | 4,521 | 21,072 | 46,434 | — | 72,027 | ||||||||||||||
Multi-client data library, net | — | 120,550 | 11,687 | — | 132,237 | ||||||||||||||
Investment in subsidiaries | 680,508 | 243,319 | — | (923,827 | ) | — | |||||||||||||
Goodwill | — | — | 26,274 | — | 26,274 | ||||||||||||||
Intangible assets, net | — | 4,523 | 287 | — | 4,810 | ||||||||||||||
Intercompany receivables | 75,641 | — | — | (75,641 | ) | — | |||||||||||||
Other assets | 1,724 | 146 | 1,107 | — | 2,977 | ||||||||||||||
Total assets | $ | 801,563 | $ | 456,186 | $ | 176,807 | $ | (999,468 | ) | $ | 435,088 | ||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||
Current liabilities: | |||||||||||||||||||
Current maturities of long-term debt | $ | 486 | $ | 6,856 | $ | 570 | $ | — | $ | 7,912 | |||||||||
Accounts payable | 2,086 | 19,839 | 7,874 | — | 29,799 | ||||||||||||||
Accrued expenses | 11,199 | 16,200 | 6,888 | — | 34,287 | ||||||||||||||
Accrued multi-client data library royalties | — | 25,045 | — | — | 25,045 | ||||||||||||||
Deferred revenue | — | 5,071 | 1,489 | — | 6,560 | ||||||||||||||
Total current liabilities | 13,771 | 73,011 | 16,821 | — | 103,603 | ||||||||||||||
Long-term debt, net of current maturities | 171,672 | 3,408 | — | — | 175,080 | ||||||||||||||
Intercompany payables | 503,621 | 68,286 | 7,355 | (579,262 | ) | — | |||||||||||||
Other long-term liabilities | 540 | 33,305 | 10,520 | — | 44,365 | ||||||||||||||
Total liabilities | 689,604 | 178,010 | 34,696 | (579,262 | ) | 323,048 | |||||||||||||
Equity: | |||||||||||||||||||
Common stock | 107 | 290,460 | 19,138 | (309,598 | ) | 107 | |||||||||||||
Additional paid-in capital | 894,715 | 180,700 | 234,234 | (414,934 | ) | 894,715 | |||||||||||||
Accumulated earnings (deficit) | (759,531 | ) | 231,208 | (21,729 | ) | (209,479 | ) | (759,531 | ) | ||||||||||
Accumulated other comprehensive income (loss) | (14,781 | ) | 4,420 | (14,604 | ) | 10,184 | (14,781 | ) | |||||||||||
Due from ION Geophysical Corporation | — | (428,612 | ) | (75,009 | ) | 503,621 | — | ||||||||||||
Treasury stock | (8,551 | ) | — | — | — | (8,551 | ) | ||||||||||||
Total stockholders’ equity | 111,959 | 278,176 | 142,030 | (420,206 | ) | 111,959 | |||||||||||||
Noncontrolling interests | — | — | 81 | — | 81 | ||||||||||||||
Total equity | 111,959 | 278,176 | 142,111 | (420,206 | ) | 112,040 | |||||||||||||
Total liabilities and equity | $ | 801,563 | $ | 456,186 | $ | 176,807 | $ | (999,468 | ) | $ | 435,088 |
Year Ended December 31, 2016 | |||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | ||||||||||||||
(In thousands) | |||||||||||||||||||
Total net revenues | $ | — | $ | 79,006 | $ | 93,802 | $ | — | $ | 172,808 | |||||||||
Cost of goods sold | — | 84,373 | 52,403 | — | 136,776 | ||||||||||||||
Gross profit (loss) | — | (5,367 | ) | 41,399 | — | 36,032 | |||||||||||||
Total operating expenses | 31,438 | 27,274 | 20,491 | — | 79,203 | ||||||||||||||
Income (loss) from operations | (31,438 | ) | (32,641 | ) | 20,908 | — | (43,171 | ) | |||||||||||
Interest expense, net | (18,406 | ) | (173 | ) | 94 | — | (18,485 | ) | |||||||||||
Intercompany interest, net | 978 | (4,397 | ) | 3,419 | — | — | |||||||||||||
Equity in earnings (losses) of investments | (19,756 | ) | 23,368 | — | (3,612 | ) | — | ||||||||||||
Other income (expense) | 3,528 | 702 | (2,880 | ) | — | 1,350 | |||||||||||||
Income (loss) before income taxes | (65,094 | ) | (13,141 | ) | 21,541 | (3,612 | ) | (60,306 | ) | ||||||||||
Income tax expense | 54 | 1,337 | 3,030 | — | 4,421 | ||||||||||||||
Net income (loss) | (65,148 | ) | (14,478 | ) | 18,511 | (3,612 | ) | (64,727 | ) | ||||||||||
Net income attributable to noncontrolling interests | — | — | (421 | ) | — | (421 | ) | ||||||||||||
Net income (loss) attributable to ION | $ | (65,148 | ) | $ | (14,478 | ) | $ | 18,090 | $ | (3,612 | ) | $ | (65,148 | ) | |||||
Comprehensive net income (loss) | $ | (72,331 | ) | $ | (14,478 | ) | $ | 10,907 | $ | 4,208 | $ | (71,694 | ) | ||||||
Comprehensive income attributable to noncontrolling interest | — | — | (421 | ) | — | (421 | ) | ||||||||||||
Comprehensive net income (loss) attributable to ION | $ | (72,331 | ) | $ | (14,478 | ) | $ | 10,486 | $ | 4,208 | $ | (72,115 | ) | ||||||
Year Ended December 31, 2015 | |||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | ||||||||||||||
(In thousands) | |||||||||||||||||||
Total net revenues | $ | — | $ | 145,615 | $ | 76,954 | $ | (1,056 | ) | $ | 221,513 | ||||||||
Cost of goods sold | — | 126,176 | 88,390 | (1,056 | ) | 213,510 | |||||||||||||
Gross profit (loss) | — | 19,439 | (11,436 | ) | — | 8,003 | |||||||||||||
Total operating expenses | 26,091 | 47,579 | 34,965 | — | 108,635 | ||||||||||||||
Loss from operations | (26,091 | ) | (28,140 | ) | (46,401 | ) | — | (100,632 | ) | ||||||||||
Interest expense, net | (18,434 | ) | (351 | ) | 32 | — | (18,753 | ) | |||||||||||
Intercompany interest, net | 697 | (3,140 | ) | 2,443 | — | — | |||||||||||||
Equity in earnings (losses) of investments | 16,604 | (42,953 | ) | — | 26,349 | — | |||||||||||||
Other income (expense) | 192 | 101,978 | (3,895 | ) | — | 98,275 | |||||||||||||
Income (loss) before income taxes | (27,032 | ) | 27,394 | (47,821 | ) | 26,349 | (21,110 | ) | |||||||||||
Income tax expense (benefit) | (1,910 | ) | 5,031 | 923 | — | 4,044 | |||||||||||||
Net income (loss) | (25,122 | ) | 22,363 | (48,744 | ) | 26,349 | (25,154 | ) | |||||||||||
Net loss attributable to noncontrolling interests | — | — | 32 | — | 32 | ||||||||||||||
Net income (loss) attributable to ION | $ | (25,122 | ) | $ | 22,363 | $ | (48,712 | ) | $ | 26,349 | $ | (25,122 | ) | ||||||
Comprehensive net income (loss) | $ | (27,096 | ) | $ | 20,553 | $ | (50,551 | ) | $ | 29,966 | $ | (27,128 | ) | ||||||
Comprehensive loss attributable to noncontrolling interest | — | — | 32 | — | 32 | ||||||||||||||
Comprehensive net income (loss) attributable to ION | $ | (27,096 | ) | $ | 20,553 | $ | (50,519 | ) | $ | 29,966 | $ | (27,096 | ) | ||||||
Year Ended December 31, 2014 | |||||||||||||||||||
Income Statement | ION Geophysical Corporation | The Guarantors | All Other Subsidiaries | Consolidating Adjustments | Total Consolidated | ||||||||||||||
(In thousands) | |||||||||||||||||||
Total net revenues | $ | — | $ | 221,008 | $ | 291,302 | $ | (2,752 | ) | $ | 509,558 | ||||||||
Cost of goods sold | — | 262,829 | 187,258 | (2,752 | ) | 447,335 | |||||||||||||
Gross profit (loss) | — | (41,821 | ) | 104,044 | — | 62,223 | |||||||||||||
Total operating expenses | 38,961 | 88,481 | 52,710 | — | 180,152 | ||||||||||||||
Income (loss) from operations | (38,961 | ) | (130,302 | ) | 51,334 | — | (117,929 | ) | |||||||||||
Interest expense, net | (18,537 | ) | (245 | ) | (600 | ) | — | (19,382 | ) | ||||||||||
Intercompany interest, net | (340 | ) | 2,146 | (1,806 | ) | — | — | ||||||||||||
Equity in earnings (losses) of investments | (74,615 | ) | 32,043 | 738 | (7,651 | ) | (49,485 | ) | |||||||||||
Other income | 4,536 | 74,295 | 1,029 | — | 79,860 | ||||||||||||||
Income (loss) before income taxes | (127,917 | ) | (22,063 | ) | 50,695 | (7,651 | ) | (106,936 | ) | ||||||||||
Income tax expense | 335 | 1,277 | 18,970 | — | 20,582 | ||||||||||||||
Net income (loss) | (128,252 | ) | (23,340 | ) | 31,725 | (7,651 | ) | (127,518 | ) | ||||||||||
Net income attributable to noncontrolling interests | — | — | (734 | ) | — | (734 | ) | ||||||||||||
Net income (loss) attributable to ION | $ | (128,252 | ) | $ | (23,340 | ) | $ | 30,991 | $ | (7,651 | ) | $ | (128,252 | ) | |||||
Comprehensive net income (loss) | $ | (129,921 | ) | $ | (23,329 | ) | $ | 30,850 | $ | (6,787 | ) | $ | (129,187 | ) | |||||
Comprehensive income attributable to noncontrolling interest | — | — | (734 | ) | — | (734 | ) | ||||||||||||
Comprehensive net income (loss) attributable to ION | $ | (129,921 | ) | $ | (23,329 | ) | $ | 30,116 | $ | (6,787 | ) | $ | (129,921 | ) | |||||
Year Ended December 31, 2016 | |||||||||||||||
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 | $ | (30,154 | ) | $ | 52,385 | $ | (20,660 | ) | $ | 1,571 | |||||
Cash flows from investing activities: | |||||||||||||||
Investment in multi-client data library | — | (10,985 | ) | (3,899 | ) | (14,884 | ) | ||||||||
Purchase of property, plant, equipment and seismic rental equipment | (73 | ) | (343 | ) | (1,072 | ) | (1,488 | ) | |||||||
Proceeds from sale of cost method investments | 2,698 | — | — | 2,698 | |||||||||||
Other investing activities | — | 30 | — | 30 | |||||||||||
Net cash provided by (used in) investing activities | 2,625 | (11,298 | ) | (4,971 | ) | (13,644 | ) | ||||||||
Cash flows from financing activities: | |||||||||||||||
Borrowings under revolving line of credit | 15,000 | — | — | 15,000 | |||||||||||
Repayments under revolving line of credit | (5,000 | ) | — | — | (5,000 | ) | |||||||||
Payments on notes payable and long-term debt | (2,070 | ) | (6,316 | ) | (248 | ) | (8,634 | ) | |||||||
Cost associated with issuance of debt | (6,744 | ) | — | — | (6,744 | ) | |||||||||
Repurchase of common stock | (964 | ) | — | — | (964 | ) | |||||||||
Intercompany lending | 31,867 | (34,771 | ) | 2,904 | — | ||||||||||
Payments to repurchase bonds | (15,000 | ) | — | — | (15,000 | ) | |||||||||
Other financing activities | (252 | ) | — | — | (252 | ) | |||||||||
Net cash provided by (used in) financing activities | 16,837 | (41,087 | ) | 2,656 | (21,594 | ) | |||||||||
Effect of change in foreign currency exchange rates on cash and cash equivalents | — | — | 1,386 | 1,386 | |||||||||||
Net decrease in cash and cash equivalents | (10,692 | ) | — | (21,589 | ) | (32,281 | ) | ||||||||
Cash and cash equivalents at beginning of period | 33,734 | — | 51,199 | 84,933 | |||||||||||
Cash and cash equivalents at end of period | $ | 23,042 | $ | — | $ | 29,610 | $ | 52,652 |
Year Ended December 31, 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 | $ | (425,310 | ) | $ | 225,581 | $ | 183,205 | $ | (16,524 | ) | |||||
Cash flows from investing activities: | |||||||||||||||
Investment in multi-client data library | — | (44,687 | ) | (871 | ) | (45,558 | ) | ||||||||
Purchase of property, plant, equipment and seismic rental equipment | (347 | ) | (3,945 | ) | (14,949 | ) | (19,241 | ) | |||||||
Other investing activities | — | 1,263 | — | 1,263 | |||||||||||
Net cash used in investing activities | (347 | ) | (47,369 | ) | (15,820 | ) | (63,536 | ) | |||||||
Cash flows from financing activities: | |||||||||||||||
Payments on notes payable and long-term debt | (153 | ) | (6,467 | ) | (832 | ) | (7,452 | ) | |||||||
Cost associated with issuance of debt | (145 | ) | — | — | (145 | ) | |||||||||
Repurchase of common stock | (1,989 | ) | — | — | (1,989 | ) | |||||||||
Intercompany lending | 352,091 | (171,745 | ) | (180,346 | ) | — | |||||||||
Other financing activities | 73 | — | — | 73 | |||||||||||
Net cash provided by (used in) financing activities | 349,877 | (178,212 | ) | (181,178 | ) | (9,513 | ) | ||||||||
Effect of change in foreign currency exchange rates on cash and cash equivalents | — | — | 898 | 898 | |||||||||||
Net decrease in cash and cash equivalents | (75,780 | ) | — | (12,895 | ) | (88,675 | ) | ||||||||
Cash and cash equivalents at beginning of period | 109,514 | — | 64,094 | 173,608 | |||||||||||
Cash and cash equivalents at end of period | $ | 33,734 | $ | — | $ | 51,199 | $ | 84,933 |
Year Ended December 31, 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 | $ | (53,925 | ) | $ | 107,590 | $ | 76,115 | $ | 129,780 | ||||||
Cash flows from investing activities: | |||||||||||||||
Investment in multi-client data library | — | (67,552 | ) | (233 | ) | (67,785 | ) | ||||||||
Purchase of property, plant and equipment | (1,240 | ) | (4,530 | ) | (2,494 | ) | (8,264 | ) | |||||||
Repayment of advances by 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 | |||||||||||
Proceeds from sale of a cost-method investment | 14,051 | — | — | 14,051 | |||||||||||
Other investing activities | 579 | 26 | 323 | 928 | |||||||||||
Net cash provided by (used in) investing activities | 14,390 | (62,175 | ) | (965 | ) | (48,750 | ) | ||||||||
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 | — | (5,384 | ) | (7,614 | ) | (12,998 | ) | ||||||||
Cost associated with issuance of debt | (2,194 | ) | — | — | (2,194 | ) | |||||||||
Intercompany lending | 61,324 | (40,031 | ) | (21,293 | ) | — | |||||||||
Payment of preferred dividends | — | — | (6,000 | ) | (6,000 | ) | |||||||||
Other financing activities | 218 | — | — | 218 | |||||||||||
Net cash provided by (used in) financing activities | 24,348 | (45,415 | ) | (34,907 | ) | (55,974 | ) | ||||||||
Effect of change in foreign currency exchange rates on cash and cash equivalents | — | — | 496 | 496 | |||||||||||
Net increase (decrease) in cash and cash equivalents | (15,187 | ) | — | 40,739 | 25,552 | ||||||||||
Cash and cash equivalents at beginning of period | 124,701 | — | 23,355 | 148,056 | |||||||||||
Cash and cash equivalents at end of period | $ | 109,514 | $ | — | $ | 64,094 | $ | 173,608 |
Year Ended December 31, 2014 | Balance at Beginning of Year | Charged (Credited) to Costs and Expenses | Deductions | Balance at End of Year | |||||||||||
(In thousands) | |||||||||||||||
Allowances for doubtful accounts | $ | 7,222 | $ | 7,275 | $ | (6,864 | ) | $ | 7,633 | ||||||
Allowances for doubtful notes receivable | — | 4,000 | — | 4,000 | |||||||||||
Warranty | 643 | 381 | (625 | ) | 399 | ||||||||||
Valuation allowance on deferred tax assets | 151,035 | 54,229 | — | 205,264 | |||||||||||
Excess and obsolete inventory | 32,555 | 6,952 | (9,703 | ) | 29,804 |
Year Ended December 31, 2015 | Balance at Beginning of Year | Charged (Credited) to Costs and Expenses | Deductions | Balance at End of Year | |||||||||||
(In thousands) | |||||||||||||||
Allowances for doubtful accounts | $ | 7,633 | $ | 1,841 | $ | (4,555 | ) | $ | 4,919 | ||||||
Allowances for doubtful notes receivable | 4,000 | — | — | 4,000 | |||||||||||
Warranty | 399 | 13 | (288 | ) | 124 | ||||||||||
Valuation allowance on deferred tax assets | 205,264 | (11,009 | ) | — | 194,255 | ||||||||||
Excess and obsolete inventory | 29,804 | 151 | (5,480 | ) | 24,475 |
Year Ended December 31, 2016 | Balance at Beginning of Year | Charged (Credited) to Costs and Expenses | Deductions | Balance at End of Year | |||||||||||
(In thousands) | |||||||||||||||
Allowances for doubtful accounts | $ | 4,919 | $ | 1,834 | $ | (5,310 | ) | $ | 1,443 | ||||||
Allowances for doubtful notes receivable | 4,000 | — | — | 4,000 | |||||||||||
Warranty | 124 | 37 | (99 | ) | 62 | ||||||||||
Valuation allowance on deferred tax assets | 194,255 | 23,334 | — | 217,589 | |||||||||||
Excess and obsolete inventory | 24,475 | 429 | (9,855 | ) | 15,049 |
3.1 | — | Restated Certificate of Incorporation, as amended, filed on November 3, 2016 as Exhibit 3.1 to the Company’s Quarterly Report on Form 10-Q and incorporated by reference. | ||
3.2 | — | Amended and Restated Bylaws of ION Geophysical Corporation filed on September 24, 2007 as Exhibit 3.5 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
3.3 | — | Certificate of Ownership and Merger merging ION Geophysical Corporation with and into Input/Output, Inc. dated September 21, 2007, filed on September 24, 2007 as Exhibit 3.1 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
4.1 | — | Certificate of Rights and Designations of Series D-1 Cumulative Convertible Preferred Stock, dated February 16, 2005 and filed on February 17, 2005 as Exhibit 3.1 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
4.2 | — | Certificate of Elimination of Series B Preferred Stock dated September 24, 2007, filed on September 24, 2007 as Exhibit 3.2 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
4.3 | — | Certificate of Elimination of Series C Preferred Stock dated September 24, 2007, filed on September 24, 2007 as Exhibit 3.3 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
4.4 | — | Certificate of Designation of Series D-2 Cumulative Convertible Preferred Stock dated December 6, 2007, filed on December 6, 2007 as Exhibit 3.1 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
4.5 | — | Certificate of Designations of Series A Junior Participating Preferred Stock of ION Geophysical Corporation effective as of December 31, 2008, filed on January 5, 2009 as Exhibit 3.1 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
4.6 | — | Certificate of Elimination of Series A Junior Participating Preferred Stock dated February 10, 2012, filed on February 13, 2012 as Exhibit 3.1 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. | ||
4.7 | — | Indenture, dated May 13, 2013, among ION Geophysical Corporation, the subsidiary guarantors named therein, Wilmington Trust, National Association, as trustee, and U.S. Bank National Association, as collateral agent, filed on May 13, 2013 as Exhibit 4.1 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
4.8 | — | Registration Rights Agreement, dated May 13, 2013, among ION Geophysical Corporation, the subsidiary guarantors named therein and Citigroup Global Markets Inc. and Wells Fargo Securities, LLC, as representatives of the initial purchasers named therein, filed on May 13, 2013 as Exhibit 4.2 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
4.9 | — | Certificate of Elimination of Series D-1 Cumulative Convertible Preferred Stock dated September 30, 2013, filed on September 30, 2013 as Exhibit 3.1 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
4.10 | — | Certificate of Elimination of Series D-2 Cumulative Convertible Preferred Stock dated September 30, 2013, filed on September 30, 2013 as Exhibit 3.2 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
**10.1 | — | Amended and Restated 1990 Stock Option Plan, filed on June 9, 1999 as Exhibit 4.2 to the Company’s Registration Statement on Form S-8 (Registration No. 333-80299), and incorporated herein by reference. | ||
10.2 | — | Office and Industrial/Commercial Lease dated June 2005 by and between Stafford Office Park II, LP as Landlord and Input/Output, Inc. as Tenant, filed on March 31, 2006 as Exhibit 10.2 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2005, and incorporated herein by reference. | ||
10.3 | — | Office and Industrial/Commercial Lease dated June 2005 by and between Stafford Office Park District as Landlord and Input/Output, Inc. as Tenant, filed on March 31, 2006 as Exhibit 10.3 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2005, and incorporated herein by reference. | ||
**10.4 | — | Input/Output, Inc. Amended and Restated 1996 Non-Employee Director Stock Option Plan, filed on June 9, 1999 as Exhibit 4.3 to the Company’s Registration Statement on Form S-8 (Registration No. 333-80299), and incorporated herein by reference. | ||
**10.5 | — | Amendment No. 1 to the Input/Output, Inc. Amended and Restated 1996 Non-Employee Director Stock Option Plan dated September 13, 1999 filed on November 14, 1999 as Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ended August 31, 1999 and incorporated herein by reference. |
**10.6 | — | Input/Output, Inc. Employee Stock Purchase Plan, filed on March 28, 1997 as Exhibit 4.4 to the Company’s Registration Statement on Form S-8 (Registration No. 333-24125), and incorporated herein by reference. | ||
**10.7 | — | Fifth Amended and Restated - 2004 Long-Term Incentive Plan, filed as Appendix A to the definitive proxy statement for the 2010 Annual Meeting of Stockholders of ION Geophysical Corporation, filed on April 21, 2010, and incorporated herein by reference. | ||
10.8 | — | Registration Rights Agreement dated as of November 16, 1998, by and among the Company and The Laitram Corporation, filed on March 12, 2004 as Exhibit 10.7 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2003, and incorporated herein by reference. | ||
**10.9 | — | Input/Output, Inc. 1998 Restricted Stock Plan dated as of June 1, 1998, filed on June 9, 1999 as Exhibit 4.7 to the Company’s Registration Statement on S-8 (Registration No. 333-80297), and incorporated herein by reference. | ||
**10.10 | — | Input/Output Inc. Non-qualified Deferred Compensation Plan, filed on April 1, 2002 as Exhibit 10.14 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2001, and incorporated herein by reference. | ||
**10.11 | — | Input/Output, Inc. 2000 Restricted Stock Plan, effective as of March 13, 2000, filed on August 17, 2000 as Exhibit 10.27 to the Company’s Annual Report on Form 10-K for the fiscal year ended May 31, 2000, and incorporated herein by reference. | ||
**10.12 | — | Input/Output, Inc. 2000 Long-Term Incentive Plan, filed on November 6, 2000 as Exhibit 4.7 to the Company’s Registration Statement on Form S-8 (Registration No. 333-49382), and incorporated by reference herein. | ||
**10.13 | — | Employment Agreement dated effective as of March 31, 2003, by and between the Company and Robert P. Peebler, filed on March 31, 2003 as Exhibit 10.1 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
**10.14 | — | First Amendment to Employment Agreement dated September 6, 2006, between Input/Output, Inc. and Robert P. Peebler, filed on September 7, 2006, as Exhibit 10.1 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. | ||
**10.15 | — | Second Amendment to Employment Agreement dated February 16, 2007, between Input/Output, Inc. and Robert P. Peebler, filed on February 16, 2007 as Exhibit 10.1 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. | ||
**10.16 | — | Third Amendment to Employment Agreement dated as of August 20, 2007 between Input/Output, Inc. and Robert P. Peebler, filed on August 21, 2007 as Exhibit 10.2 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
**10.17 | — | Fourth Amendment to Employment Agreement, dated as of January 26, 2009, between ION Geophysical Corporation and Robert P. Peebler, filed on January 29, 2009 as Exhibit 10.1 to the Company’s Current Report on Form 8-K and incorporated herein by reference. | ||
**10.18 | — | Employment Agreement dated effective as of June 15, 2004, by and between the Company and David L. Roland, filed on August 9, 2004 as Exhibit 10.5 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2004, and incorporated herein by reference. | ||
**10.19 | — | GX Technology Corporation Employee Stock Option Plan, filed on August 9, 2004 as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2004, and incorporated herein by reference. | ||
10.20 | — | Concept Systems Holdings Limited Share Acquisition Agreement dated February 23, 2004, filed on March 5, 2004 as Exhibit 2.1 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. | ||
10.21 | — | Registration Rights Agreement by and between ION Geophysical Corporation and 1236929 Alberta Ltd. dated September 18, 2008, filed on November 7, 2008 as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q and incorporated herein by reference. | ||
**10.22 | — | Form of Employment Inducement Stock Option Agreement for the Input/Output, Inc. — Concept Systems Employment Inducement Stock Option Program, filed on July 27, 2004 as Exhibit 4.1 to the Company’s Registration Statement on Form S-8 (Reg. No. 333-117716), and incorporated herein by reference. | ||
**10.23 | — | Form of Employee Stock Option Award Agreement for ARAM Systems Employee Inducement Stock Option Program, filed on November 14, 2008 as Exhibit 4.4 to the Company’s Registration Statement on Form S-8 (Registration No. 333-155378) and incorporated herein by reference. | ||
**10.24 | — | Input/Output, Inc. 2003 Stock Option Plan, dated March 27, 2003, filed as Appendix B of the Company’s definitive proxy statement filed with the SEC on April 30, 2003, and incorporated herein by reference. |
**10.25 | — | Form of Employment Inducement Stock Option Agreement for the Input/Output, Inc. — GX Technology Corporation Employment Inducement Stock Option Program, filed on April 4, 2005 as Exhibit 4.1 to the Company’s Registration Statement on Form S-8 (Reg. No. 333-123831), and incorporated herein by reference. | ||
**10.26 | — | ION Stock Appreciation Rights Plan dated November 17, 2008, filed as Exhibit 10.47 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2008, and incorporated herein by reference. | ||
10.27 | — | Canadian Master Loan and Security Agreement dated as of June 29, 2009 by and among ICON ION, LLC, as lender, ION Geophysical Corporation and ARAM Rentals Corporation, a Nova Scotia corporation, filed on August 6, 2009 as Exhibit 10.3 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2009, and incorporated herein by reference. | ||
10.28 | — | Master Loan and Security Agreement (U.S.) dated as of June 29, 2009 by and among ICON ION, LLC, as lender, ION Geophysical Corporation and ARAM Seismic Rentals, Inc., a Texas corporation, filed on August 6, 2009 as Exhibit 10.4 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2009, and incorporated herein by reference. | ||
10.29 | — | Registration Rights Agreement dated as of October 23, 2009 by and between ION Geophysical Corporation and BGP Inc., China National Petroleum Corporation filed on March 1, 2010 as Exhibit 10.54 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2009, and incorporated herein by reference. | ||
10.30 | — | Stock Purchase Agreement dated as of March 19, 2010, by and between ION Geophysical Corporation and BGP Inc., China National Petroleum Corporation, filed on March 31, 2010 as Exhibit 10.1 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. | ||
10.31 | — | Investor Rights Agreement dated as of March 25, 2010, by and between ION Geophysical Corporation and BGP Inc., China National Petroleum Corporation, filed on March 31, 2010 as Exhibit 10.2 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. | ||
10.32 | — | Share Purchase Agreement dated as of March 24, 2010, by and among ION Geophysical Corporation, INOVA Geophysical Equipment Limited and BGP Inc., China National Petroleum Corporation, filed on March 31, 2010 as Exhibit 10.3 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. | ||
10.33 | — | Joint Venture Agreement dated as of March 24, 2010, by and between ION Geophysical Corporation and BGP Inc., China National Petroleum Corporation, filed on March 31, 2010 as Exhibit 10.4 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. | ||
**10.34 | — | Fifth Amendment to Employment Agreement dated June 1, 2010, between ION Geophysical Corporation and Robert P. Peebler, filed on June 1, 2010 as Exhibit 10.1 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. | ||
**10.35 | — | Employment Agreement dated August 2, 2011, effective as of January 1, 2012, between ION Geophysical Corporation and R. Brian Hanson, filed on November 3, 2011 as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2011, and incorporated herein by reference. | ||
**10.36 | — | Employment Agreement dated effective as of November 28, 2011, between ION Geophysical Corporation and Gregory J. Heinlein, filed on December 1, 2011 as Exhibit 10.1 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. | ||
**10.37 | — | First Amendment to Credit Agreement and Loan Documents dated May 29, 2012, filed on May 29, 2012 as Exhibit 10.1 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. | ||
**10.38 | — | Consulting Services Agreement dated January 1, 2013, between ION Geophysical Corporation and The Peebler Group LLC, filed on January 4, 2013 as Exhibit 10.1 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. | ||
*10.39 | — | Second Amended and Restated 2013 Long-Term Incentive Plan. | ||
10.40 | — | Purchase Agreement, dated May 8, 2013, among ION Geophysical Corporation, the subsidiary guarantors named therein and Citigroup Global Markets Inc. and Wells Fargo Securities, LLC, as representatives of the initial purchasers named therein, filed on May 13, 2013 as Exhibit 10.1 to the Company’s Current Report on Form 8-K and incorporated herein by reference | ||
10.41 | — | Second Lien Intercreditor Agreement by and among China Merchants Bank Co., Ltd., New York Branch, as administrative agent, first lien representative for the first lien secured parties and collateral agent for the first lien secured parties, Wilmington Trust Company, National Association, as trustee and second lien representative for the second lien secured parties, and U.S. Bank National Association, as collateral agent for the second lien secured parties, and acknowledged and agreed to by ION Geophysical Corporation and the other grantors named therein, filed on May 13, 2013 as Exhibit 10.2 to the Company’s Current Report on Form 8-K and incorporated herein by reference |
10.42 | — | Revolving Credit and Security Agreement dated as of August 22, 2014 among PNC Bank, National Association, as agent for lenders, the lenders from time to time party thereto, as lenders, and PNC Capital Markets LLC, as lead arranger and bookrunner, with ION Geophysical Corporation, ION Exploration Products (U.S.A.), Inc., I/O Marine Systems, Inc. and GX Technology Corporation, as borrowers, filed on November 6, 2014 as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2014, and incorporated herein by reference. | ||
**10.43 | — | Transition and Separation Agreement dated effective as of October 30, 2014, by and between ION Geophysical Corporation and Gregory J. Heinlein. | ||
**10.44 | — | Employment Agreement dated effective as of November 13, 2014, between ION Geophysical Corporation and Steve Bate. | ||
**10.45 | — | Form of Rights Agreement dated March 1, 2015 issued under the ION Stock Appreciation Rights Plan dated November 17, 2008, filed on May 7, 2015 as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2015, and incorporated herein by reference. | ||
10.46 | — | First Amendment to Revolving Credit and Security Agreement dated as of August 4, 2015 among PNC Bank, National Association, as lender and agent, the lenders from time to time party thereto, as lenders, with ION Geophysical Corporation, ION Exploration Products (U.S.A.), Inc., I/O Marine Systems, Inc. and GX Technology Corporation, as borrowers, filed on August 6, 2015 as Exhibit 10.1 to the Company’s Current Report on Form 8-K, and incorporated herein by reference. | ||
*21.1 | — | Subsidiaries of the Company. | ||
*23.1 | — | Consent of Grant Thornton LLP. | ||
*24.1 | — | The Power of Attorney is set forth on the signature page hereof. | ||
*31.1 | — | Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a). | ||
*31.2 | — | Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a). | ||
*32.1 | — | Certification of Chief Executive Officer Pursuant to 18 U.S.C. §1350. | ||
*32.2 | — | Certification of Chief Financial Officer Pursuant to 18 U.S.C. §1350. | ||
*101 | — | The following materials are formatted in Extensible Business Reporting Language (XBRL): (i) Consolidated Balance Sheets at December 31, 2016 and 2015, (ii) Consolidated Statements of Operations for the years ended December 31, 2016, 2015 and 2014, (iii) Comprehensive Income (Loss) for the years ended December 31, 2016, 2015 and 2014, (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2016, 2015 and 2014, (v) Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2016, 2015 and 2014, (vi) Footnotes to Consolidated Financial Statements and (vii) Schedule II – Valuation and Qualifying Accounts. | ||
* | Filed herewith. | |||
** | Management contract or compensatory plan or arrangement. |
Subsidiary | Jurisdiction |
Concept Systems Holdings Limited | Scotland |
Concept Systems Limited | Scotland |
GMG/AXIS, Inc. | Delaware |
GX Geoscience Corporation S. de R.L. de C.V. | Mexico |
GX Technology Australia Pty Ltd. | Australia |
GX Technology Canada, Ltd. | Canada |
GX Technology Corporation | Texas |
GX Technology EAME, Limited | UK |
GX Technology Imaging Services Limited | Egypt |
GX Technology Poland Sp. Z o.o. | Poland |
GX Technology Processamento de Dados Ltda. | Brazil |
GX Technology Sismica Brasil Ltda. | Brazil |
GX Technology Trinidad, Ltd. | West Indies |
I/O Cayman Islands, Ltd. | Cayman Islands |
I/O International, Ltd. | Cayman Islands |
I/O International Holdings, Ltd. | Cayman Islands |
I/O Luxembourg S.à r.l. | Luxembourg |
I/O Marine Systems Limited | UK |
I/O Marine Systems, Inc. | Louisiana |
OceanGeo Ltd. | UK |
I/O U.K. Holdings Limited | Scotland |
“Inco” Industrial Components ‘s-Gravenhage B.V. | Netherlands |
ION China Holdings, Limited | Hong Kong |
ION E&P Advisors, Inc. | Delaware |
ION Exploration Products (U.S.A.), Inc. | Delaware |
ION Geophysical CIS LLC | Russia |
ION Geophysical Sdn. Bhd. | Malaysia |
ION HPC Services, Inc. | Delaware |
ION International Holdings L.P. | Bermuda |
ION International S.à r.l. | Luxembourg |
IPOP Management, Inc. | Delaware |
OceanGeo B.V. | Netherlands |
OceanGeo Inc. | British Virgin Islands |
OceanGeo Ltd. | UK |
Oceangeo Tecnologia de Exploração de Reservatórios do Brasil S.A | Brazil |
Sailwings Canada Limited | Canada |
Sensor Nederland B.V. | Netherlands |
1. | Registration Statement (Form S-8 No. 33-54394) pertaining to the Input/Output, Inc. Amended 1990 Stock Option Plan and Amended and Restated 1991 Outside Directors’ Stock Option Plan, |
2. | Registration Statement (Form S-8 No. 33-46386) pertaining to the Input/Output, Inc. 1990 Restricted Stock Plan, 1990 Stock Option Plan and 1991 Directors’ Stock Option Plan, |
3. | Registration Statement (Form S-8 No. 33-85304) pertaining to the Input/Output, Inc. Amended 1990 Stock Option Plan and the Input/Output, Inc. Amended and Restated 1991 Outside Directors’ Stock Option Plan, |
4. | Registration Statement (Form S-8 No. 333-14231) pertaining to the Input/Output, Inc. 1996 Non‑Employee Director Stock Option Plan, |
5. | Registration Statement (Form S-8 No. 333-24125) pertaining to the Input/Output, Inc. Employee Stock Purchase Plan, |
6. | Registration Statement (Form S-8 No. 333-80297) pertaining to the Input/Output, Inc. 1998 Restricted Stock Plan, |
7. | Registration Statement (Form S-8 No. 333-36264) pertaining to the Input/Output, Inc. 2000 Restricted Stock Plan, |
8. | Registration Statement (Form S-8 No. 333-49382) pertaining to the Input/Output, Inc. 2000 Long-Term Incentive Plan, |
9. | Registration Statement (Form S-8 No. 333-60950) pertaining to the Input/Output, Inc. Non‑Employee Directors’ Retainer Plan, |
10. | Registration Statement (Form S-8 No. 333-112677) pertaining to the Input/Output, Inc. 2003 Employee Stock Option Plan, |
11. | Registration Statement (Form S-8 No. 333-116355) pertaining to the GX Technology Corporation Employee Stock Option Plan, |
12. | Registration Statement (Form S-8 No. 333-117716) pertaining to the Input/Output, Inc. Concept Systems Employment Inducement Stock Option Program, |
13. | Registration Statement (Form S-8 No. 333-123831) pertaining to the Input/Output, Inc. GX Technology Corp. Employment Inducement Stock Option Program and the Input/Output, Inc. April 2005 Inducement Equity Program, |
14. | Registration Statement (Form S-8 No. 333-125655) pertaining to the Input/Output, Inc. 2004 Long‑Term Incentive Plan, |
15. | Registration Statement (Form S-8 No. 333-135775) pertaining to the Input/Output, Inc. Second Amended and Restated Input/Output, Inc. 2004 Long-Term Incentive Plan, |
16. | Registration Statement (Form S-3 No. 333-112263) of Input/Output, Inc., |
17. | Registration Statement (Form S-3 No. 333-123632) of Input/Output, Inc., |
18. | Registration Statement (Form S-8 No. 333-145274) pertaining to the Third Amended and Restated Input/Output, Inc. 2004 Long-Term Incentive Plan, |
19. | Registration Statement (Form S-8 No. 333-155378) pertaining to the Fourth Amended and Restated 2004 Long-Term Incentive Plan and the ARAM Systems Employee Inducement Stock Options Program, |
20. | Registration Statement (Form S-3 No. 333-159898) of ION Geophysical Corporation, |
21. | Registration Statement (Form S-8 No. 333-167943) pertaining to the Fifth Amended and Restated 2004 Long-Term Incentive Plan and the ION Geophysical Corporation Employee Stock Purchase Plan, |
22. | Registration Statement (Form S-3 No. 333-166200) of ION Geophysical Corporation, |
23. | Registration Statement (Form S-8 No. 333-176046) pertaining to the Sixth Amended and Restated 2004 Long-Term Incentive Plan, |
24. | Registration Statement (Form S-8 No. 333-190474) pertaining to the 2013 Long-Term Incentive Plan, |
25. | Registration Statement (Form S-4 No. 333-194110) of ION Geophysical Corporation, and |
26. | Registration Statement (Form S-8 No. 333-209707) pertaining to the 2013 Long-Term Incentive Plan. |
1. | I have reviewed this Annual Report on Form 10-K for the period ended December 31, 2016, of ION Geophysical Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: February 9, 2017 | /s/ R. Brian Hanson | |
R. Brian Hanson | ||
President and Chief Executive Officer |
1. | I have reviewed this Annual Report on Form 10-K for the period ended December 31, 2016, of ION Geophysical Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: February 9, 2017 | /s/ Steven A. Bate | |
Steven A. Bate | ||
Executive Vice President and Chief Financial Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: February 9, 2017 | /s/ R. Brian Hanson | |
R. Brian Hanson | ||
President and Chief Executive Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: February 9, 2017 | /s/ Steven A. Bate | |
Steven A. Bate | ||
Executive Vice President and Chief Financial Officer |
Document and Entity Information - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Feb. 06, 2017 |
Jun. 30, 2016 |
|
Document and Entity Information [Abstract] | |||
Entity Registrant Name | ION GEOPHYSICAL CORP | ||
Entity Central Index Key | 0000866609 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2016 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 69.2 | ||
Entity Common Stock, Shares Outstanding | 11,792,446 |
Consolidated Balance Sheets (Parenthetical) - $ / shares |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 26,666,667 | 26,666,667 |
Common stock, shares outstanding | 11,792,447 | 10,702,689 |
Treasury stock, shares | 0 | 353,124 |
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (64,727) | $ (25,154) | $ (127,518) |
Other comprehensive income (loss), net of taxes, as appropriate: | |||
Foreign currency translation adjustments | (6,967) | (1,974) | (882) |
Equity interest in investee’s other comprehensive loss | 0 | 0 | (841) |
Unrealized gain on available-for-sale securities | 0 | 0 | 28 |
Other changes in other comprehensive income | 0 | 0 | 26 |
Total other comprehensive income (loss), net of taxes | (6,967) | (1,974) | (1,669) |
Comprehensive net loss | (71,694) | (27,128) | (129,187) |
Comprehensive (income) loss attributable to noncontrolling interest | (421) | 32 | (734) |
Comprehensive net loss attributable to ION | $ (72,115) | $ (27,096) | $ (129,921) |
Consolidated Statements of Stockholders' Equity (Parenthetical) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
|
Statement of Stockholders' Equity [Abstract] | ||
Net income attributable to redeemable noncontrolling interests | $ (0.1) | $ 0.7 |
Summary of Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies General Description and Principles of Consolidation ION Geophysical Corporation and its subsidiaries offer a full suite of services and products for seismic data acquisition and processing. The consolidated financial statements include the accounts of ION Geophysical Corporation and its majority-owned subsidiaries (collectively referred to as the “Company” or “ION”). Intercompany balances and transactions have been eliminated. Certain reclassifications were made to previously reported amounts in the consolidated financial statements and notes thereto to make them consistent with the current presentation format. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates are made at discrete points in time based on relevant market information. These estimates may be subjective in nature and involve uncertainties and matters of judgment and, therefore, cannot be determined with precision. Areas involving significant estimates include, but are not limited to, accounts and unbilled receivables, inventory valuation, sales forecasts related to multi-client data libraries, goodwill and intangible asset valuation and deferred taxes. Actual results could materially differ from those estimates. Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. The Company places its temporary cash investments with high credit quality financial institutions. At times such investments may be in excess of the Federal Deposit Insurance Corporation (FDIC) insurance limit. At December 31, 2016 and 2015, there was $0.8 million and $0.5 million, respectively, of short-term restricted cash used to secure standby and commercial letters of credit, which is included within Prepaid Expenses and Other Current Assets. Accounts and Unbilled Receivables Accounts and unbilled receivables are recorded at cost, less the related allowance for doubtful accounts. The Company considers current information and events regarding the customers’ ability to repay their obligations, such as the length of time the receivable balance is outstanding, the customers’ credit worthiness and historical experience. Unbilled receivables relate to revenues recognized on multi-client surveys, imaging services and ocean bottom acquisition services on a proportionate basis, and on licensing of multi-client data libraries for which invoices have not yet been presented to the customer. Inventories Inventories are stated at the lower of cost (primarily first-in, first-out method) or market. The Company provides reserves for estimated obsolescence or excess inventory equal to the difference between cost of inventory and its estimated market value based upon assumptions about future demand for the Company’s products, market conditions and the risk of obsolescence driven by new product introductions. Property, Plant, Equipment and Seismic Rental Equipment Property, plant, equipment and seismic rental equipment are stated at cost. Depreciation expense is provided straight-line over the following estimated useful lives:
Expenditures for renewals and betterments are capitalized; repairs and maintenance are charged to expense as incurred. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the accounts and any gain or loss is reflected in operating expenses. The Company evaluates the recoverability of long-lived assets, including property, plant, equipment and seismic rental equipment, when indicators of impairment exist, relying on a number of factors including operating results, business plans, economic projections and anticipated future cash flows. Impairment in the carrying value of an asset held for use is recognized whenever anticipated future cash flows (undiscounted) from an asset are estimated to be less than its carrying value. The amount of the impairment recognized is the difference between the carrying value of the asset and its fair value. Multi-Client Data Library The multi-client data library consists of seismic surveys that are offered for licensing to customers on a non-exclusive basis. The capitalized costs include costs paid to third parties for the acquisition of data and related activities associated with the data creation activity and direct internal processing costs, such as salaries, benefits, computer-related expenses and other costs incurred for seismic data project design and management. For 2016, 2015 and 2014, the Company capitalized, as part of its multi-client data library, $6.6 million, $6.1 million and $8.3 million, respectively, of direct internal processing costs. At December 31, 2016 and 2015, multi-client data library costs and accumulated amortization consisted of the following (in thousands):
The Company’s method of amortizing the costs of an in-process multi-client data library (the period during which the seismic data is being acquired and/or processed, referred to as the “new venture” phase) consists of determining the percentage of actual revenue recognized to the total estimated revenues (which includes both revenues estimated to be realized during the new venture phase and estimated revenues from the licensing of the resulting “on-the-shelf” data survey) and multiplying that percentage by the total cost of the project (the sales forecast method). The Company considers a multi-client data survey to be complete when all work on the creation of the seismic data is finished and that data survey is available for licensing. Once a multi-client data survey is complete, the data survey is considered “on-the-shelf” and the Company’s method of amortization is then the greater of (i) the sales forecast method or (ii) the straight-line basis over a four-year period. The greater amount of amortization resulting from the sales forecast method or the straight-line amortization policy is applied on a cumulative basis at the individual survey level. Under this policy, the Company first records amortization using the sales forecast method. The cumulative amortization recorded for each survey is then compared with the cumulative straight-line amortization. The four-year period utilized in this cumulative comparison commences when the data survey is determined to be complete. If the cumulative straight-line amortization is higher for any specific survey, additional amortization expense is recorded, resulting in accumulated amortization being equal to the cumulative straight-line amortization for such survey. The Company has determined the amortization period of four years based upon its historical experience that indicates that the majority of its revenues from multi-client surveys are derived during the acquisition and processing phases and during four years subsequent to survey completion. The Company estimates the ultimate revenue expected to be derived from a particular seismic data survey over its estimated useful economic life to determine the costs to amortize, if greater than straight-line amortization. That estimate is made by the Company at the project’s initiation. For a completed multi-client survey, the Company reviews the estimate quarterly. If during any such review, the Company determines that the ultimate revenue for a survey is expected to be materially more or less than the original estimate of ultimate revenue for such survey, the Company decreases or increases (as the case may be) the amortization rate attributable to the future revenue from such survey. In addition, in connection with such reviews, the Company evaluates the recoverability of the multi-client data library, and, if required under Accounting Standards Codification (“ASC”) 360-10 “Impairment and Disposal of Long-Lived Assets,” records an impairment charge with respect to such data. For a discussion of impairments of the Company’s multi-client data library in 2014, see Footnote 2 “Cost Reduction Initiative, Impairments, Restructurings and Other Charges.” Equity Method Investments In accordance with ASC 810 “Consolidation,” the Company determined that INOVA Geophysical is a variable interest entity because the Company’s voting rights with respect to INOVA Geophysical are not proportionate to its ownership interest and substantially all of INOVA Geophysical’s activities are conducted on behalf of the Company and BGP, a related party to the Company. The Company is not the primary beneficiary of INOVA Geophysical because it does not have the power to direct the activities of INOVA Geophysical that most significantly impact its economic performance. Accordingly, the Company does not consolidate INOVA Geophysical, but instead accounts for INOVA Geophysical using the equity method of accounting. Under this method, an investment is carried at the acquisition cost, plus the Company’s equity in undistributed earnings or losses since acquisition, less distributions received. As provided by ASC 815 “Investments,” the Company accounted for its share of earnings in INOVA Geophysical on a one fiscal quarter lag basis. See further discussion regarding the Company’s equity method investment, including the full write-down of its investment in 2014, in INOVA Geophysical at Footnote 15 “Equity Method Investments.” Noncontrolling Interests The Company has non-redeemable noncontrolling interests. Non-redeemable noncontrolling interests in majority-owned affiliates are reported as a separate component of equity in “Noncontrolling interests” in the Consolidated Balance Sheets. Redeemable noncontrolling interests include noncontrolling ownership interests which provide the holders the rights, at certain times, to require the Company to acquire their ownership interest in those entities. These interests are not considered to be permanent equity and are reported in the mezzanine section of the Consolidated Balance Sheets at the greater of their carrying value or redemption value at the balance sheet date. Net loss in the Consolidated Statements of Operations is attributable to both controlling and noncontrolling interests. Goodwill and Other Intangible Assets Goodwill is allocated to reporting units, which are either the operating segment or one reporting level below the operating segment. For purposes of performing the impairment test for goodwill as required by ASC 350 “Intangibles — Goodwill and Other,” (“ASC 350”) the Company established the following reporting units: E&P Technology & Services, Optimization Software & Services, Devices and Ocean Bottom Services. In accordance with ASC 350, the Company is required to evaluate the carrying value of its goodwill at least annually for impairment, or more frequently if facts and circumstances indicate that it is more likely than not impairment has occurred. The Company formally evaluates the carrying value of its goodwill for impairment as of December 31 for each of its reporting units. The Company first performs a qualitative assessment by evaluating relevant events or circumstances to determine whether it is more likely than not that the fair value of a reporting unit exceeds its carrying amount. If the Company is unable to conclude qualitatively that it is more likely than not that a reporting unit’s fair value exceeds its carrying value, then it will use a two-step quantitative assessment of the fair value of a reporting unit. To determine the fair value of these reporting units, the Company uses a discounted future returns valuation model, which includes a variety of level 3 inputs. The key inputs for the model include the operational three-year forecast for the Company and the then-current market discount factor. Additionally, the Company compares the sum of the estimated fair values of the individual reporting units less consolidated debt to the Company’s overall market capitalization as reflected by the Company’s stock price. If the carrying value of a reporting unit that includes goodwill is determined to be more than the fair value of the reporting unit, there exists the possibility of impairment of goodwill. An impairment loss of goodwill is measured in two steps by first allocating the fair value of the reporting unit to net assets and liabilities including recorded and unrecorded intangible assets to determine the implied carrying value of goodwill. The next step is to measure the difference between the carrying value of goodwill and the implied carrying value of goodwill, and, if the implied carrying value of goodwill is less than the carrying value of goodwill, an impairment loss is recorded equal to the difference. See further discussion below at Footnote 10 “Goodwill.” The intangible assets, other than goodwill, relate to customer relationships. The Company amortizes its customer relationship intangible assets on an accelerated basis over a 10- to 15-year period, using the undiscounted cash flows of the initial valuation models. The Company uses an accelerated basis as these intangible assets were initially valued using an income approach, with an attrition rate that resulted in a pattern of declining cash flows over a 10- to 15-year period. Following the guidance of ASC 360 “Property, Plant and Equipment,” the Company reviews the carrying values of these intangible assets for impairment if events or changes in the facts and circumstances indicate that their carrying value may not be recoverable. Any impairment determined is recorded in the current period and is measured by comparing the fair value of the related asset to its carrying value. See further discussion below at Footnote 9 “Details of Selected Balance Sheet Accounts — Intangible Assets.” Fair Value of Financial Instruments The Company’s financial instruments include cash and cash equivalents, short-term investments, accounts and unbilled receivables, accounts payable, accrued multi-client data library royalties and long-term debt. The carrying amounts of cash and cash equivalents, short-term investments, accounts and unbilled receivables, accounts payable and accrued multi-client data library royalties approximate fair value due to the highly liquid nature of these instruments. The fair value of the long-term debt is calculated using a market approach based upon Level 1 inputs, including an active market price. Revenue Recognition The Company derives revenue from the sale of (i) multi-client and proprietary surveys, licenses of “on-the-shelf” data libraries and imaging services within its E&P Technology & Services segment; (ii) seismic data acquisition systems and other seismic equipment; (iii) seismic command and control software systems and software solutions for operations management within its E&P Operations Optimization segment; and (iv) fully-integrated ocean bottom seismic (“OBS”) solutions that include survey design and planning and data acquisition within its Ocean Bottom Services segment. All revenues of the E&P Technology & Services and Ocean Bottom Services segments and the services component of revenues for the Optimization Software & Services group within the E&P Operations Optimization segment are classified as services revenues. All other revenues are classified as product revenues. Multi-Client and Proprietary Surveys, Data Libraries and Imaging Services — As multi-client surveys are being designed, acquired and/or processed (referred to as the “new venture” phase), the Company enters into non-exclusive licensing arrangements with its customers. License revenues from these new venture survey projects are recognized during the new venture phase as the seismic data is acquired and/or processed on a proportionate basis as work is performed. Under this method, the Company recognizes revenues based upon quantifiable measures of progress, such as kilometers acquired or days processed. Upon completion of a multi-client seismic survey, the seismic survey is considered “on-the-shelf,” and licenses to the survey data are granted to customers on a non-exclusive basis. Revenues on licenses of completed multi-client data surveys are recognized when (a) a signed final master geophysical data license agreement and accompanying supplemental license agreement are returned by the customer; (b) the purchase price for the license is fixed or determinable; (c) delivery or performance has occurred; (d) and no significant uncertainty exists as to the customer’s obligation, willingness or ability to pay. In limited situations, the Company has provided the customer with a right to exchange seismic data for another specific seismic data set. In these limited situations, the Company recognizes revenue at the earlier of the customer exercising its exchange right or the expiration of the customer’s exchange right. The Company also performs seismic surveys under contracts to specific customers, whereby the seismic data is owned by those customers. Revenue is recognized as the seismic data is acquired and/or processed on a proportionate basis as work is performed. The Company uses quantifiable measures of progress consistent with its multi-client surveys. Revenues from all imaging and other services are recognized when (a) persuasive evidence of an arrangement exists, (b) the price is fixed or determinable, and (c) collectability is reasonably assured. Revenues from contract services performed on a dayrate basis are recognized as the service is performed. Acquisition Systems and Other Seismic Equipment — For the sales of acquisition systems and other seismic equipment, the Company follows the requirements of ASC 605-10 “Revenue Recognition” and recognizes revenue when (a) evidence of an arrangement exists; (b) the price to the customer is fixed and determinable; (c) collectibility is reasonably assured; and (d) the acquisition system or other seismic equipment is delivered to the customer and risk of ownership has passed to the customer, or, in the case in which a substantive customer-specified acceptance clause exists in the contract, the later of delivery or when the customer-specified acceptance is obtained. Software — For the sales of navigation, survey and quality control software systems, the Company follows the requirements of ASC 985-605 “Software Revenue Recognition” (“ASC 985-605”). The Company recognizes revenue from sales of these software systems when (a) evidence of an arrangement exists; (b) the price to the customer is fixed and determinable; (c) collectibility is reasonably assured; and (d) the software is delivered to the customer and risk of ownership has passed to the customer, or, in the limited case in which a substantive customer-specified acceptance clause exists, the later of delivery or when the customer-specified acceptance is obtained. These arrangements generally include the Company providing related services, such as training courses, engineering services and annual software maintenance. The Company allocates revenue to each element of the arrangement based upon vendor-specific objective evidence (“VSOE”) of fair value of the element or, if VSOE is not available for the delivered element, the residual method. In addition to perpetual software licenses, the Company offers time-based software licenses. For time-based licenses, the Company recognizes revenue ratably over the contract term, which is generally two to five years. Ocean Bottom Services — The Company recognizes revenues as they are realized and earned and can be reasonably measured, based on contractual dayrates or on a fixed-price basis, and when collectability is reasonably assured. In connection with acquisition contracts, the Company may receive revenues for preparation and mobilization of equipment and personnel or for capital improvements to vessels. The Company defers the revenues earned and incremental costs incurred that are directly related to contract preparation and mobilization and recognizes such revenues and costs over the primary contract term of the acquisition project. The Company uses the ratio of square kilometers acquired as a percentage of the total square kilometers expected to be acquired over the primary term of the contract to recognize deferred revenues and amortize, in cost of services, the costs related to contract preparation and mobilization. The Company recognizes the costs of relocating vessels without contracts to more promising market sectors as such costs are incurred. Upon completion of acquisition contracts, the Company recognizes in earnings any demobilization fees received and expenses incurred. Multiple-element Arrangements — When separate elements (such as an acquisition system, other seismic equipment and/or imaging and acquisition services) are contained in a single sales arrangement, or in related arrangements with the same customer, the Company follows the requirements of ASC 605-25 “Accounting for Multiple-Element Revenue Arrangement” (“ASC 605-25”). This guidance requires that arrangement consideration be allocated at the inception of an arrangement to all deliverables using the relative selling price method. The Company allocates arrangement consideration to each deliverable qualifying as a separate unit of accounting in an arrangement based on its relative selling price. The Company determines its selling price using VSOE, if it exists, or otherwise third-party evidence (“TPE”). If neither VSOE nor TPE of selling price exists for a unit of accounting, the Company uses estimated selling price (“ESP”). The Company generally expects that it will not be able to establish TPE due to the nature of the markets in which the Company competes, and, as such, the Company typically will determine its selling price using VSOE or, if not available, ESP. VSOE is generally limited to the price charged when the same or similar product is sold on a standalone basis. If a product is seldom sold on a standalone basis, it is unlikely that the Company can determine VSOE for the product. The objective of ESP is to determine the price at which the Company would transact if the product were sold by the Company on a standalone basis. The Company’s determination of ESP involves a weighting of several factors based on the specific facts and circumstances of the arrangement. Specifically, the Company considers the anticipated margin on the particular deliverable, the selling price and profit margin for similar products and the Company’s ongoing pricing strategy and policies. Product Warranty — The Company generally warrants that its manufactured equipment will be free from defects in workmanship, materials and parts. Warranty periods generally range from 30 days to three years from the date of original purchase, depending on the product. The Company provides for estimated warranty as a charge to costs of sales at the time of sale. However, new information may become available, or circumstances (such as applicable laws and regulations) may change, thereby resulting in an increase or decrease in the amount required to be accrued for such matters (and therefore a decrease or increase in reported net income in the period of such change). In limited cases, the Company has provided indemnification of customers for potential intellectual property infringement claims relating to products sold. Research, Development and Engineering Research, development and engineering costs primarily relate to activities that are designed to improve the quality of the subsurface image and overall acquisition economics of the Company’s customers. The costs associated with these activities are expensed as incurred. These costs include prototype material and field testing expenses, along with the related salaries and stock-based compensation, facility costs, consulting fees, tools and equipment usage and other miscellaneous expenses associated with these activities. Stock-Based Compensation The Company accounts for stock-based compensation under the provisions of ASC 718, “Compensation – Stock Compensation” (“ASC 718”). The Company estimates the value of stock option awards on the date of grant using the Black-Scholes option pricing model. The determination of the fair value of stock-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of subjective variables. These variables include, but are not limited to, expected stock price volatility over the term of the awards, actual and projected employee stock option exercise behaviors, risk-free interest rate and expected dividends. The Company recognizes stock-based compensation on the straight-line basis over the service period of each award (generally the award’s vesting period). Income Taxes Income taxes are accounted for under the liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, including operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The Company records a valuation allowance when it is more likely than not that all or a portion of deferred tax assets will not be realized (see Footnote 6 “Income Taxes”). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Debt Issuance Costs In the first quarter of 2016, the Company adopted Accounting Standards Update (ASU) 2015-03, which requires entities to present debt issuance costs related to a debt liability as a direct deduction from the carrying amount of that debt liability on the balance sheet as opposed to being presented as a deferred charge, and ASU 2015-15, which adds paragraphs to ASU 2015-03 indicating that the SEC staff would not object to an entity deferring and presenting debt issuance costs related to line of credit arrangements as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings on the line of credit arrangement. For all periods presented in the Consolidated Financial Statements in this Form 10-K for the year ended December 31, 2016, unamortized debt issuance costs related to the Company’s long-term debt are reported on the Consolidated Balance Sheets as a reduction of the carrying value of the related debt. Prior to adoption, the Company reported the unamortized debt issuance costs in “Other Assets” on the Consolidated Balance Sheets. The change in presentation resulted in a reduction of “Other Assets” and “Long-Term Debt” of $3.3 million as of December 31, 2015. Comprehensive Net Loss Comprehensive net loss as shown in the Consolidated Statements of Comprehensive Loss and the balance in Accumulated Other Comprehensive Loss as shown in the Consolidated Balance Sheets as of December 31, 2016 and 2015, consist of foreign currency translation adjustments, equity interest in INOVA Geophysical’s accumulated other comprehensive loss and unrealized gains or losses on available-for-sale securities. Foreign Currency Gains and Losses Assets and liabilities of the Company’s subsidiaries operating outside the United States that have a functional currency other than the U.S. dollar have been translated to U.S. dollars using the exchange rate in effect at the balance sheet date. Results of foreign operations have been translated using the average exchange rate during the periods of operation. Resulting translation adjustments have been recorded as a component of Accumulated Other Comprehensive Loss. Foreign currency transaction gains and losses are included in the Consolidated Statements of Operations in Other income as they occur. Total foreign currency transaction losses were $3.3 million, $2.1 million and $1.8 million for 2016, 2015 and 2014, respectively. Concentration of Foreign Sales Risk The majority of the Company’s foreign sales are denominated in U.S. dollars. For 2016, 2015 and 2014, international sales comprised 78%, 66% and 74%, respectively, of total net revenues. The significant decline in oil price that began in the fourth quarter of 2014 have continued to impact the global market throughout 2015 and 2016. Since 2008, global economic problems and uncertainties have generally increased in scope and nature. To the extent that world events or economic conditions negatively affect the Company’s future sales to customers in many regions of the world, as well as the collectability of the Company’s existing receivables, the Company’s future results of operations, liquidity and financial condition would be adversely affected. |
Cost Reduction Initiatives, Impairments, Restructurings and Other Charges |
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Cost Reduction Initiatives, Impairments, Restructurings and Other Charges | Cost Reduction Initiatives, Impairments, Restructurings and Other Charges The declines in oil prices 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. 2016 Cost Reduction Initiatives and Other Charges In April 2016, the Company implemented additional cost saving initiatives by reducing its current workforce by approximately 12%. Additional reductions were needed to further streamline the organization and bring it in line with the Company’s current revenue stream, while maintaining the necessary core capabilities to continue our operations and strategic initiatives. In addition, the Company incurred losses in association with the exchange of a portion of its bonds during the second quarter 2016. During the twelve months ended December 31, 2016, the Company recognized the following pre-tax charges (in thousands):
2015 Cost Reduction Initiatives During 2015, the Company continued its cost reduction initiatives by (i) 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., (iii) making further reductions in personnel across all of the Company’s segments primarily 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% and (iv) reducing salaries by 10% for the majority of the Company’s employees during 2015. During 2015, the Company recognized the following pre-tax charges and credits (in thousands):
2014 Cost Reduction Initiatives In the fourth quarter of 2014, the Company initiated restructurings across all of its segments, except for its Ocean Bottom Services segment. This restructuring involved the reduction of headcount in all those segments by approximately 10%. The Company incurred a total of $2.3 million of severance charges, paid out in 2015. During 2014, the Company re-evaluated the realizability of certain inventory and receivables. The Company wrote down inventory by recording $7.0 million of charges related to excess and obsolete inventory and wrote down certain receivables totaling $8.2 million, which includes receivables due from INOVA Geophysical. During 2014, the Company recognized the following pre-tax charges and credits (in thousands):
Impairment of Multi-client Data Library During 2014, the Company wrote down the multi-client data library, primarily associated with Arctic and onshore North American programs, by $100.1 million after it was determined that estimated future cash flows would not be sufficient to recover the carrying value due to then current market conditions. The reductions in exploration spending, discussed above, have had an impact on the Company’s results of operations for 2014, especially those of its E&P Technology & Services segment. Sales of Arctic programs were specifically impacted by events in Russia. The decline in crude oil prices, as well as U.S. and European Union sanctions against Russia related to its actions in Ukraine, have both contributed to the devaluation of the Russian Ruble putting significant pressure on the Company’s Russian-based customers and negatively impacting the appeal of seismic data located in Russia to potential non-Russian buyers. The Russian Ruble declined sharply throughout 2015 and into January 2016, reaching its lowest level since the currency was redenominated in 1998, before partially recovering during 2016. In North America, the land seismic market experienced softness. E&P customer spending in the natural gas shale plays have been limited due to associated gas being produced from unconventional oil wells in North America increasing natural gas supplies putting downward pressure on U.S. natural gas prices. This impairment of the Company’s multi-client data library was recorded because the net capitalized costs exceeded the fair value of the multi-client data library as measured by estimated future cash flows. The fair values of the individual libraries were measured using valuation techniques consistent with the income approach, converting future cash flows to a single discounted amount. Significant inputs used to determine the fair values of the libraries included estimates of: (i) revenues; (ii) future costs including royalties; and (iii) an appropriate discount rate. In order to estimate future cash flows, the Company considered historical cash flows, existing and future contracts and changes in the market environment and other factors that may affect future cash flows. To the extent applicable, the assumptions the Company used are consistent with forecasts that it is otherwise required to make (for example, in preparing its earnings forecasts). The use of this method involves inherent uncertainty. The Company has determined that the fair value measurements of this nonfinancial asset are level 3 in the fair value hierarchy. |
Segment and Geographic Information |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment and Geographic Information | Segment and Geographic Information The Company evaluates and reviews its results based on three business segments: E&P Technology & Services, E&P Operations Optimization, and Ocean Bottom Services. In August 2016, the Company announced its plans to realign its four business segments into three. Beginning in the third quarter of 2016, the Company changed its reportable segments as described below:
Accordingly, all segment information presented herein has been revised to reflect the realignment of the Company’s segments. The Company has an equity ownership interest its INOVA Geophysical joint venture. See Footnote 15 “Equity Method Investments” for the summarized financial information for INOVA Geophysical. A summary of segment information follows (in thousands):
(a) Includes a charge of $100.1 million to write down the multi-client data library, impacting gross profit (loss), in addition to charges for the impairment of intangible assets and severance-related charges within the E&P Technology & Services segment. (b) Includes a charge of $21.9 million to write down goodwill, impacting income (loss) from operations, in addition to charges for write-downs of inventory and receivables and severance-related charges related to our Devices group within our E&P Optimization Operations segment.
A summary of total assets by geographic area follows (in thousands):
Intersegment sales are insignificant for all periods presented. Support and other assets include all assets specifically related to support personnel and operation and a majority of cash and cash equivalents. Depreciation and amortization expense is allocated to segments based upon use of the underlying assets. A summary of net revenues by geographic area follows (in thousands):
Net revenues are attributed to geographic areas on the basis of the ultimate destination of the equipment or service, if known, or the geographic area imaging services are provided. If the ultimate destination of such equipment is not known, net revenues are attributed to the geographic area of initial shipment. |
Long-term Debt and Lease Obligations |
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Long-term Debt and Lease Obligations | Long-term Debt and Lease Obligations
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”), and together with the Company, collectively, the “Borrowers”) entered into a Revolving Credit and Security Agreement with PNC Bank, National Association (“PNC”), as agent (the “Original Credit Agreement”), which was amended by the First Amendment to Revolving Credit and Security Agreement in August 2015 (the “First Amendment”) and the Second Amendment (as defined below) (the Original Credit Agreement, as amended by the First Amendment, and the Second Amendment, the “Credit Facility”). 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 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. On April 28, 2016, the Borrowers and PNC entered into a second amendment (the “Second Amendment”) to the Credit Facility. The Second Amendment, among other things:
The borrowing base under the Credit Facility will increase or decrease monthly using a formula based on certain eligible receivables, eligible inventory and other amounts, including a percentage of the net orderly liquidation value of the Borrowers’ multi-client data library (not to exceed $15.0 million for the multi-client data library data component). As of December 31, 2016, the borrowing base under the Credit Facility was $25.2 million, and there was $10.0 million of indebtedness under the Credit Facility. The Credit Facility is scheduled to mature on August 22, 2019. The obligations of Borrowers under the Credit Facility are secured by a first-priority security interest in 100% of the stock of the Subsidiary Borrowers and 65% of the equity interest in ION International Holdings L.P. and by substantially all other assets of the Borrowers. 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), 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. In addition, the terms of our Credit Facility contain covenants that restrict the Company from paying cash dividends on its common stock, or repurchasing or acquiring shares of its common stock, unless (i) there is no event of default under the Credit Facility, (ii) there is excess availability under the Credit Facility greater than $20.0 million (or, at the time that the borrowing base formula amount is less than $20.0 million, the borrowers’ level of liquidity (as defined in the revolving credit and security agreement) is greater than $20.0 million) and (iii) the agent receives satisfactory projections showing that excess availability under the Credit Facility for the immediately following period of ninety (90) consecutive days will not be less than $20.0 million (or, at the time that the borrowing base formula amount is less than $20.0 million, the borrowers’ level of liquidity is greater than $20.0 million). The aggregate amount of permitted cash dividends and stock repurchases may not exceed $10.0 million in any fiscal year or $40.0 million in the aggregate from and after the closing date of the Credit Facility. The Credit Facility, 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) $7.5 million for five consecutive business days or (ii) $6.5 million on any given business day. Liquidity, as defined in the Credit Facility, is the Company’s excess availability to borrow ($15.2 million at December 31, 2016) plus the aggregate amount of unrestricted cash held by ION, the Subsidiary Borrowers and their domestic subsidiaries. At December 31, 2016 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 Notes In May 2013, the Company sold $175.0 million aggregate principal amount of 8.125% Senior Secured Second-Priority Notes due 2018 (the “Third Lien Notes”) in a private offering pursuant to an Indenture dated as of May 13, 2013 (the Third Lien Notes Indenture”). Prior to the completion of the Exchange Offer (as defined below) and Consent Solicitation (as defined below) on April 28, 2016, the Third Lien Notes were senior secured second-priority obligations of the Company. After giving effect to the Exchange Offer and Consent Solicitation, the remaining aggregate principal amount of approximately $28.5 million of outstanding Third Lien Notes became senior secured third-priority obligations of the Company subordinated to the liens securing all senior and second priority indebtedness of the Company, including under the Credit Facility and Second-Priority Lien Notes (defined below). Pursuant to the Exchange Offer and Consent Solicitation, the Company (i) issued approximately $120.6 million in aggregate principal amount of the Company’s new 9.125% Senior Secured Second Priority Notes due 2021 (the “Second Lien Notes,” and collectively with the Third Lien Notes, the “Notes”) and 1,205,477 shares of the Company’s common stock in exchange for approximately $120.6 million in aggregate principal amount of Third Lien Notes, and (ii) purchased approximately $25.9 million in aggregate principal amount of Third Lien Notes in exchange for aggregate cash consideration totaling approximately $15.0 million, plus accrued and unpaid interest on the Third Lien Notes from the applicable last interest payment date to, but not including, April 28, 2016. After giving effect to the Exchange Offer and Consent Solicitation, the aggregate principal amount of the Third Lien Notes remaining outstanding was approximately $28.5 million and the aggregate principal amount of Second Lien Notes outstanding was approximately $120.6 million. See “Exchange Offer” below. The Third Lien Notes 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 Third Lien 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. Prior to the completion of the Exchange Offer and Consent Solicitation, the Third Lien Notes Indenture contained certain covenants that, among other things, limited or prohibited 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 Third Lien 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 Third Lien Notes Indenture are subject to certain exceptions and qualifications. After giving effect to the Exchange Offer and Consent Solicitation, the Third Lien Notes Indenture was amended to, among other things, provide for the release of the second priority security interest in the collateral securing the remaining Third Lien Notes and the grant of a third priority security interest in the collateral, subordinate to liens securing all senior and second priority indebtedness of the Company, including the Credit Facility and the Second Lien Notes, and eliminate substantially all of the restrictive covenants and certain events of default pertaining to the remaining Third Lien Notes. As of December 31, 2016, the Company was in compliance with the covenants with respect to the Third Lien Notes. On or after May 15, 2015, the Company may on one or more occasions redeem all or a part of the Third Lien Notes at the redemption prices set forth below, plus accrued and unpaid interest and special interest, if any, on the Third Lien Notes redeemed during the twelve-month period beginning on May 15th of the years indicated below:
The Second Lien Notes are senior secured second-priority obligations guaranteed by the Guarantors. The Second Lien Notes mature on December 15, 2021. Interest on the Second Lien Notes accrues at the rate of 9.125% per annum and is payable semiannually in arrears on June 15 and December 15 of each year during their term, beginning June 15, 2016, except that the interest payment otherwise payable on June 15, 2021 will be payable on December 15, 2021. The indenture dated April 28, 2016 governing the Second Lien Notes (the “Second Lien Notes Indenture”) contains certain covenants that, among other things, limits or prohibits 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 Second Lien 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 Second Lien Notes Indenture are subject to certain exceptions and qualifications. All of the Company’s subsidiaries are currently restricted subsidiaries. As of December 31, 2016, the Company was in compliance with the covenants with respect to the Second Lien Notes. On or after December 15, 2019, the Company may on one or more occasions redeem all or a part of the Second Lien Notes at the redemption prices set forth below, plus accrued and unpaid interest and special interest, if any, on the Second Lien Notes redeemed during the twelve-month period beginning on December 15th of the years indicated below:
Exchange Offer On April 28, 2016, the Company successfully completed the previously announced exchange offer (the “Exchange Offer”) and consent solicitation (the “Consent Solicitation”) related to the Third Lien Notes. The Company did not receive any cash proceeds in connection with the Exchange Offer and Consent Solicitation. Under the terms of the Exchange Offer, for each $1,000 principal amount of Third Lien Notes validly tendered for exchange and not validly withdrawn by an eligible holder (an “Exchange Participant”) prior to 11:59 P.M., New York City time, on April 25, 2016, and accepted for exchange by the Company, the Company offered the consideration (the “Exchange Consideration”) of (i) $1,000 principal amount of Second Lien Notes plus (ii) either (a) for Third Lien Notes tendered at or prior to 4:59 P.M., New York City time, on April 15, 2016 (the “Extended Early Tender Deadline”), ten (10) shares of the Company’s common stock (the “Early Stock Consideration”), or (b) for Third Lien Notes tendered after the Extended Early Tender Deadline, seven (7) shares of the Company’s common stock (the “Stock Consideration”) (such shares issued as the Early Stock Consideration or the Stock Consideration, together with the Second Lien Notes, the “Exchange Securities”), upon the terms and subject to the conditions set forth in the Company’s confidential Offer to Exchange and related Consent and Letter of Transmittal, each dated March 28, 2016 (the “Offer Documents”). As part of the Exchange Offer, each Exchange Participant had the opportunity to tender all or a portion of its Third Lien Notes for a cash payment in lieu of the Exchange Consideration upon the terms and subject to the conditions set forth in the Offer Documents (the “Cash Tender Option”). The aggregate amount of cash consideration that could be paid by the Company for tendered Third Lien Notes accepted for purchase pursuant to the Cash Tender Option was approximately $15.0 million plus accrued and unpaid interest to, but not including, the settlement date of the Exchange Offer (collectively, the “Cash Tender Cap”). Concurrently with the Exchange Offer, the Company solicited consents from eligible holders to proposed amendments to the Third Lien Notes Indenture (the “Proposed Amendments”). The Proposed Amendments, among other things, provide for the release of the second priority security interest in the collateral securing the Third Lien Notes and the grant of a third priority security interest in the collateral, subordinate to liens securing all the Company’s senior and second priority indebtedness, including the Credit Facility and the Second Lien Notes, and eliminate substantially all of the restrictive covenants and certain events of default pertaining to the Third Lien Notes. The Exchange Offer, including the Cash Tender Option, and the Consent Solicitation expired at 11:59 P.M., New York City time, on April 28, 2016. In total, the Company accepted for exchange approximately $146.5 million in aggregate principal amount of the Third Lien Notes, or approximately 83.72% of the $175 million outstanding aggregate principal amount of the Third Lien Notes, validly tendered and not withdrawn in the Exchange Offer. The Third Lien Notes validly tendered and not withdrawn in the Exchange Offer were accepted by the Company. Because the Company received the necessary consents to effect the Proposed Amendments, any Third Lien Notes not validly tendered pursuant to the Exchange Offer remain outstanding and the holders are subject to the terms of the supplemental indenture implementing the Proposed Amendments. No consideration was paid to holders of Third Lien Notes in connection with the Consent Solicitation. After giving effect to the Exchange Offer and Consent Solicitation, the aggregate principal amount of the Third Lien Notes remaining outstanding was approximately $28.5 million as of April 25, 2016, and such Third Lien Notes are secured on a third priority basis subordinated to the liens securing all senior and second priority indebtedness of the Company, including under the Credit Facility and Second Lien Notes. In exchange for approximately $120.6 million in aggregate principal amount of Third Lien Notes, the Company issued approximately $120.6 million aggregate principal amount of Second Lien Notes and 1,205,477 shares of common stock, including 1,204,980 shares issued as Early Stock Consideration and 497 shares issued as Stock Consideration. The Company utilized 508,464 of treasury shares towards the total 1,205,477 shares issued. The securities issued in the Exchange Offer were issued in reliance on an exemption from registration set forth in Section 4(a)(2) of the Securities Act. The Company received no cash consideration in exchange for the issuance of the Exchange Securities. The Cash Tender Option was fully subscribed. Pursuant to the terms of the Exchange Offer, the Company accepted for purchase tendered Third Lien Notes at the lowest bid prices until the Cash Tender Cap was reached, subject to proration. In exchange for aggregate cash consideration totaling approximately $15.0 million, the Company purchased approximately $25.9 million in aggregate principal amount of Third Lien Notes. The Company also paid in cash accrued and unpaid interest on Third Lien Notes accepted for purchase in the Exchange Offer from the applicable last interest payment date to, but not including, April 28, 2016. Equipment Capital Leases The Company has entered into capital leases that are due in installments for the purpose of financing the purchase of computer equipment through 2019. Interest accrues under these leases at rates of up to 4.3% per annum, and the leases are collateralized by liens on the computer equipment. The assets are amortized over the lesser of their related lease terms or their estimated productive lives and such charges are reflected within depreciation expense. A summary of future principal obligations under long-term debt and equipment capital lease obligations follows (in thousands):
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Net Income (Loss) per Common Share |
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Earnings Per Share [Abstract] | |
Net Income (Loss) per Common Share | Net Income (Loss) per Common 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 issuable under anti-dilutive options at December 31, 2016, 2015 and 2014 were 847,635, 560,797 and 599,068, respectively. All outstanding stock options for the twelve months ended December 31, 2016, 2015 and 2014 were anti-dilutive. |
Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The sources of income (loss) before income taxes are as follows (in thousands):
Components of income taxes are as follows (in thousands):
A reconciliation of the expected income tax expense on income (loss) before income taxes using the statutory federal income tax rate of 35% for 2016, 2015 and 2014 to income tax expense follows (in thousands):
The tax effects of the cumulative temporary differences resulting in the net deferred income tax asset (liability) are as follows (in thousands):
During 2013 the Company established a valuation allowance on the substantial majority of U.S. net deferred tax assets due to the significant charges taken during the year and the related inability to rely on projections of future income. As of December 31, 2016, the Company has a full valuation allowance on all net U.S. deferred tax assets. The valuation allowance was calculated in accordance with the provisions of ASC 740-10, “Accounting for 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. The Company will continue to record a valuation allowance for the substantial majority of its deferred tax assets until there is sufficient evidence to warrant reversal. At December 31, 2016, the Company had U.S. net operating loss carryforwards of approximately $217.6 million, expiring in 2034, and net operating loss carryforwards outside of the U.S. of approximately $97.1 million, the majority of which expires beyond 2027. At December 31, 2016, the Company also had $3.2 million of U.S. capital loss carryforwards. The majority of these capital loss carryforwards expire in 2017. As of December 31, 2016, the Company has approximately $1.3 million of unrecognized tax benefits and does not expect to recognize any significant increases in unrecognized tax benefits during the next twelve-month period. Interest and penalties, if any, related to unrecognized tax benefits are recorded in income tax expense. During 2016, 2015 and 2014, the aggregate changes in the Company’s total gross amount of unrecognized tax benefits are summarized as follows (in thousands):
The Company’s U.S. federal tax returns for 2013 and subsequent years remain subject to examination by tax authorities. The Company is no longer subject to 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 a future period. In the Company’s foreign tax jurisdictions, tax returns for 2011 and subsequent years generally remain open to examination. As of December 31, 2016, the Company considered the outside book-over-tax basis difference in its foreign subsidiaries to be in the amount of approximately $86.3 million. United States income taxes have not been provided on this difference as it is the Company’s intention to reinvest the undistributed earnings of its foreign subsidiaries indefinitely. The Company’s U.S. operations are expected to be fully supported by existing cash balances and U.S.-generated cash flows. These foreign earnings could become subject to additional tax if remitted, or deemed remitted, to the United States as a dividend; however, it is not practicable to estimate the additional amount of taxes payable. |
Legal Matters |
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Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters | Legal Matters 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, denying the Company’s post-verdict motions that challenged the jury’s infringement findings and damages amount. In the Memorandum and Order, the judge also stated that WesternGeco is entitled to be awarded supplemental damages for the additional DigiFIN units that were supplied from the United States before and after 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. Also, the Final Judgment 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 Final Judgment, holding the District Court erred by including lost profits in the Final Judgment. Lost profits were $93.4 million and prejudgment interest on the lost profits 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. In February 26, 2016, WesternGeco filed a petition for writ of certiorari by the Supreme Court. The Company filed its response on April 27, 2016. Subsequently, on June 20, 2016, the Supreme Court refused to disturb the Court of Appeals ruling finding no lost profits as a matter of law. Separately, in light of the changes in case law regarding the standard of proof for willfulness in the Halo and Stryker cases, the Supreme Court indicated that the case should be remanded to the Federal Circuit for a determination of whether or not the willfulness determination by the District Court was appropriate. On October 14, 2016, the United States Court of Appeals for the Federal Circuit issued a mandate returning the case to the District Court for consideration of whether or not additional damages for willfulness are appropriate. The Company will argue enhancement is not proper here under the new law, just as it was not under prior law, but in any event should be based on the royalty award, not the award plus interest. On November 14, 2016, the District Court issued an order reducing the amount of the appeal bond from $120.0 million to $65.0 million dollars, ordered the sureties to pay principal and interest on the royalty previously awarded and declined to issue a final judgment until after consideration of whether enhanced damages related to willfulness should be awarded in the case. While the Company does not agree with the unusual decision by the District Court ordering payment of the royalty damages and interest without a final judgment, the Company paid the $20.8 million due pursuant to the order to WesternGeco on November 25, 2016. The district court previously refused WesternGeco’s request for additional damages for willfulness, but a change in the law in June 2016, permitted WesternGeco to renew its request, the Company has opposed WesternGeco’s motion. WesternGeco has also filed a motion in the U.S. Supreme Court indicating it intends to appeal the lost profits again. The Company will oppose WesternGeco’s second attempt to appeal to the Supreme Court matters it did not succeed on in its appeal last year (among other reasons). After issuance of a final judgement, we will decide whether or not to pursue available appeals regarding the decision. As previously disclosed, the Company had taken a loss contingency accrual of $123.8 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 $22.0 million. The District Court ordered payment of the royalty damages and interest without a final judgment and the Company paid the $20.8 million due pursuant to the order to WesternGeco on November 25, 2016. After this payment the remaining $1.1 million accrual was reversed to zero. Effective as of December 31, 2016, the Company no longer has a loss contingency associated with the WesternGeco litigation. The Company’s assessment of its potential loss contingency and need for a loss contingency may change in the future due to developments in the case and other events, such as changes in applicable law or adverse order, and such reassessment could lead to the determination that a new loss contingency should be established up to approximately $44.0 million. 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 District 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. In light of the payment of the $20.8 million in royalty damages by the Company, the sureties filed motions on December 30, 2016 to have the appeal bond dismissed. 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) |
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Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income (Expense) | Other Income A summary of other income follows (in thousands):
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Details of Selected Balance Sheet Accounts |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Details of Selected Balance Sheet Accounts | Details of Selected Balance Sheet Accounts Accounts Receivable
Inventories
The Company provides for estimated obsolescence or excess inventory in amounts equal to the difference between the cost of inventory and market based upon assumptions about future demand for the Company’s products and market conditions and risk of obsolescence. In 2016, the reserve for excess and obsolete inventory decreased due to the transfer of reserved ocean bottom equipment inventory to be used in Ocean Bottom Services contracts, partially offset by the increase in the Company’s reserve for excess and obsolete inventories by $0.4 million. Property, Plant, Equipment and Seismic Rental Equipment A summary of property, plant, equipment and seismic rental equipment follows (in thousands):
Total depreciation expense, including amortization of assets recorded under capital leases, for 2016, 2015 and 2014 was $20.3 million, $24.6 million and $25.1 million, respectively. Intangible Assets
Total amortization expense for intangible assets for 2016, 2015 and 2014 was $1.7 million, $1.9 million and $2.5 million, respectively. A summary of the estimated amortization expense for the next three years follows (in thousands):
Accrued Expenses
Other Long-term Liabilities
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Goodwill |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | Goodwill On December 31, 2016, the Company completed the annual reviews of the carrying value of goodwill in its E&P Technology and Services and Optimization Software & Services reporting units and noted no impairments. The qualitative assessment concluded it was more likely than not that the fair values of the Company’s E&P Technology & Services, and Optimization Software & Services reporting units exceeded their carrying values. In 2014, the Company recorded an impairment charge of $21.9 million related to its goodwill in its Devices reporting unit. For goodwill testing purposes, the litigation contingency accrual of $123.8 million as of December 31, 2014 was assigned to this reporting unit. Based on this accrual and the recording of a valuation allowance on substantially all of the Company’s net deferred tax assets, this reporting unit’s carrying value was negative as of December 31, 2014. The negative carrying value required the Company to perform step 2 of the impairment test on Devices; the test determined that the goodwill associated with the Devices reporting unit was impaired. The Company also recorded a $1.4 million impairment of certain intangible assets related to customer relationship within the E&P Technology & Services segment at December 31, 2014. The following is a summary of the changes in the carrying amount of goodwill for the years ended December 31, 2016 and 2015 (in thousands):
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Stockholder's Equity and Stock-based Compensation |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity and Stock-based Compensation | Stockholders' Equity and Stock-based Compensation Stock Option Plans The Company has adopted stock option plans for eligible employees, directors and consultants, which provide for the granting of options to purchase shares of common stock. As of December 31, 2016, there were 847,635 outstanding options under the Company’s stock option plans, and 599,720 shares available for future grant and issuance. The option and share numbers have been retroactively adjusted to reflect the one-for-fifteen reverse stock split completed on February 4, 2016. The options under these plans generally vest in equal annual installments over a four-year period and have a term of ten years. These options are typically granted with an exercise price per share equal to or greater than the current market price and, upon exercise, are issued from the Company’s unissued common shares. In August 2006, the Compensation Committee of the Board of Directors of the Company approved fixed pre-established quarterly grant dates for all future grants of options. At-The-Market Equity Offering Program On December 22, 2016 the Company announced that it has filed a prospectus supplement under which it may sell up to $20.0 million of its common stock through an "at-the-market" equity offering program (the "ATM Program"). ION intends to use the net proceeds from sales under the ATM Program for general corporate purposes. The timing of any sales will depend on a variety of factors to be determined by ION. As of December 31, 2016, no shares were sold under the program. Stock Repurchase Program On November 4, 2015, the Company’s board of directors approved a stock repurchase program authorizing a Company stock repurchase, from time to time from November 10, 2015 through November 10, 2017, up to $25 million in shares of the Company’s 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 shares of our common stock and general market and economic conditions, applicable legal requirements and compliance with the terms of our outstanding indebtedness. The repurchase program does not obligate the Company to acquire any particular amount of common stock and may be modified or suspended at any time and could be terminated prior to completion. As of December 31, 2016, the Company was authorized to repurchase up to $25 million through November 17, 2017 and had repurchased $3 million or 451,792 shares of its common stock under the repurchase program at an average price per share of $6.41. The number of shares repurchased and the average price per repurchased share has been retroactively adjusted to reflect the one-for-fifteen reverse stock split completed on February 4, 2016. Reverse Stock Split and Increase in Authorized Shares On February 1, 2016, the Company’s stockholders approved an increase in the number of authorized shares of common stock from 200 million to 400 million, or 13.3 million to 26.7 million retroactively adjusted to reflect the one-for-fifteen reverse stock split. On February 4, 2016, the Company completed a one-for-fifteen reverse stock split, and the Company’s common stock began trading on a reverse-split adjusted basis on February 5, 2016. On February 5, 2016, the closing sale price for the Company’s common stock was $6.21 on the NYSE. All numbers of shares of common stock and per share common stock data in the accompanying consolidated financial statements and related notes have been retroactively adjusted to reflect this stock split for all periods presented. Unless otherwise noted, all numbers of shares of preferred stock and per share preferred stock data in the accompanying consolidated financial statements and related notes are not adjusted to reflect the stock split of our common stock. As a result of the reverse stock split, the number of issued and outstanding shares was adjusted and the number of shares underlying outstanding stock options and the related exercise prices were adjusted. Following the effective date of the reverse stock split, the par value of the Company’s common stock remained at $0.01 per share, and the number of authorized shares was reduced from 400,000,000 to 26,666,667, adjusted to reflect a one-for-fifteen reverse stock split. The prices and share, restricted and option figures presented in the table below have been retroactively adjusted to reflect the one-for-fifteen reverse stock split completed on February 4, 2016. Transactions under the stock option plans are summarized as follows:
Stock options outstanding at December 31, 2016 are summarized as follows:
Additional information related to the Company’s stock options follows:
The total intrinsic value of options exercised during 2016, 2015 and 2014 was less than $0.1 million, $0.1 million and $0.1 million, respectively. During 2016 and 2015 there was no cash received from option exercises under all share-based payment arrangements, and the Company received $0.1 million, in 2014. The weighted average grant date fair value for stock option awards granted during 2016, 2015 and 2014 was $2.04, $16.65 and $36.15 per share, respectively. Restricted Stock and Restricted Stock Unit Plans The Company has issued restricted stock and restricted stock units under the Company’s 2013 Long-Term Incentive Plan and other applicable plans. Restricted stock units are awards that obligate the Company to issue a specific number of shares of common stock in the future if continued service vesting requirements are met. Non-forfeitable ownership of the common stock will vest over a period as determined by the Company in its sole discretion, generally in equal annual installments over a three-year period. Shares of restricted stock awarded may not be sold, assigned, transferred, pledged or otherwise encumbered by the grantee during the vesting period. The status of the Company’s restricted stock and restricted stock unit awards for 2016 follows:
At December 31, 2016, the intrinsic value of restricted stock and restricted stock unit awards was approximately $1.7 million. The weighted average grant date fair value for restricted stock and restricted stock unit awards granted during 2016, 2015 and 2014 was $3.81, $34.20 and $59.70 per share, respectively. The total fair value of shares vested during 2016, 2015 and 2014 was $0.2 million, $0.6 million and $2.1 million, respectively. Employee Stock Purchase Plan Effective February, 2016, the Company terminated its Employee Stock Purchase Plan (“ESPP”) that had been in place since June 2010. The ESPP allowed all eligible employees to authorize payroll deductions at a rate of 1% to 10% of base compensation (or a fixed amount per pay period) for the purchase of the Company’s common stock. Each participant was limited to purchase no more than 33 shares per offering period or 66 shares annually. Additionally, no participant may purchase shares in any calendar year that exceeded $10,000 in fair market value based on the fair market value of the stock on the offering commencement date. The purchase price of the common stock was the lesser of 85% of the closing price on the first day of the applicable offering period (or most recently preceding trading day) or 85% of the closing price on the last day of the offering period (or most recently preceding trading day). Each offering period is six months and commences on February 1 and August 1 of each year. The ESPP was considered a compensatory plan under ASC 718, and the Company recorded compensation expense of approximately $0.1 million and $0.2 million during 2015 and 2014, respectively. The expense represents the estimated fair value of the look-back purchase option. The fair value was determined using the Black-Scholes option pricing model and was recognized over the purchase period. Stock Appreciation Rights Plan The Company has adopted a stock appreciation rights plan which provides for the award of stock appreciation rights (“SARs”) to directors and selected key employees and consultants. The awards under this plan are subject to the terms and conditions set forth in agreements between the Company and the holders. The exercise price per SAR is not to be less than one hundred percent of the fair market value of a share of common stock on the date of grant of the SAR. The term of each SAR shall not exceed ten years from the grant date. Upon exercise of a SAR, the holder shall receive a cash payment in an amount equal to the spread specified in the SAR agreement for which the SAR is being exercised. In no event will any shares of common stock be issued, transferred or otherwise distributed under the plan. On March 1, 2016, the Company issued 1,210,000 Stock Appreciation Rights (“SARs”) awards to 15 selected key employees with an exercise price of $3.10. None of these SARs were awarded to non-employee directors. 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. Pursuant to ASC 718, the stock appreciation rights 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:
On March 1, 2015, the Company issued 207,207 SAR awards to 16 selected key employees with an exercise price of $34.20. None of these SARs were awarded to non-employee directors. The SAR awards number and exercise price have been retroactively adjusted to reflect the one-for-fifteen reverse stock split completed on February 4, 2016. 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. Pursuant to ASC 718, “Compensation – Stock Compensation,” the stock appreciation rights 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:
Additionally, as of December 31, 2016, the Company had outstanding 9,333 SAR awards to one individual with an exercise price of $45.00. The Company recorded less than $0.1 million, annually, of share-based compensation expense during 2016, 2015 and 2014, related to employee stock appreciation rights. Pursuant to ASC 718, the stock appreciation rights are considered liability awards and as such, these amounts are accrued in the liability section of the balance sheet. Valuation Assumptions The Company calculated the fair value of each stock option on the date of grant using the Black-Scholes option pricing model. The following assumptions were used for each respective period:
The computation of expected volatility during 2016, 2015 and 2014 was based on an equally weighted combination of historical volatility and market-based implied volatility. Historical volatility was calculated from historical data for a period of time approximately equal to the expected term of the option award, starting from the date of grant. Market-based implied volatility was derived from traded options on the Company’s common stock having a term of six months. The Company’s computation of expected life in 2016, 2015 and 2014 was determined based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. The risk-free interest rate assumption is based upon the U.S. Treasury yield curve in effect at the time of grant for periods corresponding with the expected life of the option. Stock-based Compensation Expense The following table summarizes stock-based compensation expense for the years ended December 31, 2016, 2015 and 2014 as follows (in thousands):
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Supplemental Cash Flow Information and Non-cash Activity |
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Supplemental Cash Flow Information and Non-cash Activity | Supplemental Cash Flow Information and Non-Cash Activity Supplemental disclosure of cash flow information follows (in thousands):
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Operating Leases |
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Leases, Operating [Abstract] | |||||||||||||||||||||||||||||||||||||
Operating Leases | Operating Leases Lessee. The Company leases certain equipment, offices and warehouse space under non-cancelable operating leases. Rental expense was $11.3 million, $11.8 million and $12.9 million for 2016, 2015 and 2014, respectively. A summary of future rental commitments over the next five years under non-cancelable operating leases follows (in thousands):
On our existing OceanGeo vessel leases, our future commitments are di minimis if we do not re-charter the vessels for a future data survey. |
Acquisition of OceanGeo |
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Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||
Acquisition of OceanGeo | Acquisition of OceanGeo Prior to 2014, the Company owned a 30% ownership interest in OceanGeo B.V. (“OceanGeo”). OceanGeo specializes in seismic acquisition operations using ocean bottom cables deployed from vessels leased by OceanGeo. To further assist OceanGeo in acquiring backlog, in October 2013, the Company also agreed to loan OceanGeo additional funds for working capital, as necessary, up to a maximum of $25.0 million. Prior to obtaining a controlling interest in OceanGeo, the Company advanced a total of $18.9 million to OceanGeo. In January 2014, the Company acquired an additional 40% interest in OceanGeo, through the conversion of certain outstanding amounts loaned to OceanGeo by the Company into additional equity interests of OceanGeo, bringing the Company’s total equity interest in OceanGeo to 70% and giving the Company control over OceanGeo. The Company began including in its results of operations, the results of OceanGeo from the date of the Company’s acquisition of a controlling interest. In July 2014, the Company acquired the remaining 30% of OceanGeo, increasing its equity interest in OceanGeo to 100%. The Company acquired OceanGeo as part of its strategy to expand the range of service offerings it can provide to oil and gas exploration and production customers and to put its Calypso® ocean bottom seismic acquisition technology to work in a service model to meet the growing demand for ocean bottom seismic services. The following summarized unaudited pro forma consolidated income statement information for 2014, assumes that the OceanGeo acquisition had occurred as of the beginning of the periods presented. 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 the Company had completed the acquisition as of the beginning of the periods presented or the results that may be attained in the future. Amounts presented below are in thousands, except for the per share amounts:
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Equity Method Investments |
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Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments | Equity Method Investments The Company owns a 49% interest in a land seismic equipment business with BGP. BGP is a subsidiary of China National Petroleum Corporation (“CNPC”) and is a global geophysical services contracting company. The joint venture company, organized under the laws of the People’s Republic of China, is named INOVA Geophysical Equipment Limited (“INOVA Geophysical”). BGP owns the remaining 51% interest in INOVA Geophysical. INOVA Geophysical is managed through a Board of Directors consisting of four members appointed by BGP and three members appointed by the Company. At December 31, 2014, the Company fully impaired its investment in INOVA as it determined that the decline in fair value below cost basis was other-than-temporary. This impairment was the result of the land seismic market having softened significantly due to reduced E&P company spending in the North American natural gas shale plays and reduced seismic activity in Russia and other regions due to lower crude oil prices. The Company recorded a charge of $30.7 million, impairing its equity investment in INOVA and its share of INOVA’s accumulated other comprehensive loss, reducing both balances to zero. The Company accounts for its 49% interest in INOVA Geophysical as an equity method investment. As of December 31, 2016, the carrying value of this investment remains zero. The Company no longer records its equity in losses or earnings and has no obligation, implicit or explicit, to fund any expenses of INOVA Geophysical. |
Fair Value of Financial Instruments |
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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. Due to their highly liquid nature, the amount of the Company’s other financial instruments, including cash and cash equivalents, accounts and unbilled receivables, short term investments, accounts payable and accrued multi-client data library royalties, represent their approximate fair value. The carrying amounts of the Company’s long-term debt as of December 31, 2016 and 2015 were $163.9 million and $186.3 million, respectively, compared to its fair values of $114.8 million and $107.6 million as of December 31, 2016 and 2015, respectively. The fair value of the long-term debt was calculated using Level 1 inputs, including an active market price. |
Benefit Plans |
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Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | Benefit Plans The Company has a 401(k) retirement savings plan, which covers substantially all employees. Employees may voluntarily contribute up to 60% of their compensation, as defined, to the plan. Effective June 1, 2000, the Company adopted a company matching contribution to the 401(k) plan. The Company matched the employee contribution at a rate of 50% of the first 6% of compensation contributed to the plan. Company contributions to the plans were $0.8 million, $1.4 million and $1.8 million, during 2016, 2015 and 2014, respectively. |
Selected Quarterly Information (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Quarterly Information (Unaudited) | Selected Quarterly Information — (Unaudited) A summary of selected quarterly information follows (in thousands, except per share amounts):
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Certain Relationships and Related Party Transactions |
12 Months Ended |
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Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Certain Relationships and Related Party Transactions | Certain Relationships and Related Party Transactions For 2016, 2015 and 2014, the Company recorded revenues from BGP of $3.6 million, $6.3 million and $6.5 million, respectively. Receivables due from BGP were $0.4 million and $0.3 million at December 31, 2016 and 2015, respectively. BGP owned approximately 13.1% of the Company’s outstanding common stock as of December 31, 2016. Mr. James M. Lapeyre, Jr. is the Chairman of the Board on ION’s board of directors and a significant equity owner of Laitram, L.L.C. (Laitram), and he has served as president of Laitram and its predecessors since 1989. Laitram is a privately-owned, New Orleans-based manufacturer of food processing equipment and modular conveyor belts. Mr. Lapeyre and Laitram together owned approximately 8.1% of the Company’s outstanding common stock as of December 31, 2016. The Company acquired DigiCourse, Inc., the Company’s marine positioning products business, from Laitram in 1998. In connection with that acquisition, the Company entered into a Continued Services Agreement with Laitram under which Laitram agreed to provide the Company certain bookkeeping, software, manufacturing and maintenance services. Manufacturing services consist primarily of machining of parts for the Company’s marine positioning systems. The term of this agreement expired in September 2001 but the Company continues to operate under its terms. In addition, from time to time, when the Company has requested, the legal staff of Laitram has advised the Company on certain intellectual property matters with regard to the Company’s marine positioning systems. During 2016, the Company paid Laitram and its affiliates less than $0.1 million, which consisted of less than $0.1 million for manufacturing services, and less than $0.1 million for reimbursement for costs related to providing administrative and other back-office support services in connection with the Company’s Louisiana marine operations. For the 2015 and 2014 fiscal years, the Company paid Laitram and its affiliates less than $0.1 million and $2.4 million, respectively, for these services. In the opinion of the Company’s management, the terms of these services are fair and reasonable and as favorable to the Company as those that could have been obtained from unrelated third parties at the time of their performance. In July 2013, the Company agreed to lend up to $10.0 million to INOVA Geophysical, and received a promissory note issued by INOVA Geophysical to the order of the Company, which was scheduled to mature on September 30, 2013. The maturity date of the promissory note was extended to December 31, 2014. The loan was made by the Company to support certain short-term working capital needs of INOVA Geophysical. The indebtedness under the note accrues interest at an annual rate equal to the London Interbank Offered Rate plus 650 basis points or 15%, in the event of a default. In 2013, the Company advanced the full principal amount of $10.0 million to INOVA Geophysical under the promissory note. INOVA Geophysical has repaid a total of $6.0 million, of which $4.0 million remained outstanding at December 31, 2016. The term of the note has not been extended past December 31, 2014, when the note went into default and INOVA has advised the Company that it is not currently able to repay the outstanding amount. In December 2014, the Company wrote down the book value of this receivable to zero. During the fourth quarter 2016, the Company received $4.0 million in past due rents from INOVA. |
Recent Accounting Pronouncements |
12 Months Ended |
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Dec. 31, 2016 | |
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. In August 2015, the FASB issued guidance deferring the effective date to years beginning after December 15, 2017, and interim periods within those years. This new guidance replaces virtually all existing U.S. GAAP and IFRS guidance on revenue recognition. The underlying principle is that the entity will recognize revenue to depict the transfer of goods and services to customers at an amount that the entity expects to be entitled to in the exchange of goods and services. The guidance provides a five-step analysis of transactions to determine when and how revenue is recognized. Other major provisions include capitalization of certain contract costs, consideration of time value of money in the transaction price, and allowing estimates of variable consideration to be recognized before contingencies are resolved in certain circumstances. The guidance also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. In December 2016, the FASB issued amendments to Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers. The amendments allow entities not to make quantitative disclosures about remaining performance obligations in certain cases and require entities that use any of the new or previously existing optional exemptions to expand their qualitative disclosures. It also makes additional technical corrections and improvements to the new revenue standard. The guidance will be effective with the same date and transition requirements as those in ASC 606. While the Company continues to evaluate the two allowed adoption methods (either the full retrospective method or the modified retrospective method) to determine which method it plans to use, the Company currently expects to use the modified retrospective method. The Company also continues to assess whether the implementation of this new guidance will have a material impact on the Company’s New Venture and Devices groups’ consolidated financial position or results of operations for the periods presented. While the Company continues to evaluate the impact on its consolidated financial statements for all of its business segments, the Company does not currently expect the adoption of ASC 606 to have a material impact on its consolidated balance sheets or consolidated statement of operations for its Imaging Services group, Optimization Software & Services group or its Ocean Bottom Services segment. In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842)” which introduces the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous guidance. The guidance will be effective for annual reporting periods beginning after December 15, 2018 and interim periods within those fiscal years with early adoption permitted. The Company currently expects that the adoption of ASU 2016-002 may have a material impact related to its facility operating leases on its consolidated financial statements, and continues to evaluate the impact of vessel leases in the Company’s Ocean Bottom Services segment. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," that will change how companies account for certain aspects of share-based payments to employees. Entities will be required to recognize the income tax effects of awards in the statement of income when the awards vest or are settled, the guidance on employers’ accounting for an employee’s use of shares to satisfy the employer’s statutory income tax withholding obligation and for forfeitures is changing and the update requires companies to present excess tax benefits as an operating activity on the statement of cash flows rather than as a financing activity. The amendments in this update will be effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. Early adoption is permitted. The Company will adopt ASU 2016-09 in the first quarter of 2017. The Company is unable to estimate the impact of adoption as it is dependent upon future stock option exercises which cannot be predicted, however, the Company is not expecting the adoption of ASU 2016-09 to have a material impact on net income, basic and diluted earnings per share, deferred tax assets or net cash from operations. In June 2016, the FASB issued ASU 2016-13, "Measurement of Credit Losses on Financial Instruments” that will change how companies measure credit losses for most financial assets and certain other instruments that aren’t measured at fair value through net income. The standard will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount. The amendments in this update will be effective for annual periods beginning after December 15, 2019 and interim periods within those annual periods. Early adoption is permitted for annual periods beginning after December 15, 2018. The Company is evaluating the effect of ASU 2016-13 on our consolidated financial statements. In August 2016 the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments (a consensus of the FASB Emerging Issues Task Force) (ASU 2016-15)”, that clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows. The guidance also clarifies how the predominance principle should be applied when cash receipts and cash payments have aspects of more than one class of cash flows. The guidance will be effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. Early adoption is permitted. The Company is evaluating the effect of ASU 2016-15 on its consolidated financial statements. In November 2016 the FASB issued ASU 2016-18, “Statement of Cash Flows (Topic 230), Restricted Cash (a consensus of the FASB Emerging Issues Task Force) (ASU 2016-18)”, that will require entities to show changes in the total of cash, cash equivalents, restricted cash and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. When cash, cash equivalents, restricted cash and restricted cash equivalents are presented in more than one-line item on the balance sheet, a reconciliation of the totals in the statement of cash flows to the related captions in the balance sheet is required. The guidance will be effective for annual periods beginning after December 15, 2017 and interim periods within those annual periods. Early adoption is permitted. The Company is evaluating the effect of ASU 2016-18 on its consolidated financial statements. |
Condensed Consolidating Financial Information |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information The notes were issued by ION Geophysical Corporation, and are guaranteed by the Company’s current material U.S. subsidiaries: GX Technology Corporation, ION Exploration Products (U.S.A.), Inc. and I/O Marine Systems, Inc. (“the Guarantors”), which are 100-percent-owned subsidiaries. The Guarantors have fully and unconditionally guaranteed the payment obligations of ION Geophysical Corporation with respect to these debt securities. The following condensed consolidating financial information presents the results of operations, financial position and cash flows for:
This condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements and notes.
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Valuation and Qualifying Accounts |
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Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation and Qualifying Accounts | SCHEDULE II ION GEOPHYSICAL CORPORATION AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS
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Summary of Significant Accounting Policies (Policies) |
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Dec. 31, 2016 | |||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||
General Description and Principles of Consolidation | General Description and Principles of Consolidation ION Geophysical Corporation and its subsidiaries offer a full suite of services and products for seismic data acquisition and processing. The consolidated financial statements include the accounts of ION Geophysical Corporation and its majority-owned subsidiaries (collectively referred to as the “Company” or “ION”). Intercompany balances and transactions have been eliminated. Certain reclassifications were made to previously reported amounts in the consolidated financial statements and notes thereto to make them consistent with the current presentation format. |
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates are made at discrete points in time based on relevant market information. These estimates may be subjective in nature and involve uncertainties and matters of judgment and, therefore, cannot be determined with precision. Areas involving significant estimates include, but are not limited to, accounts and unbilled receivables, inventory valuation, sales forecasts related to multi-client data libraries, goodwill and intangible asset valuation and deferred taxes. Actual results could materially differ from those estimates. |
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Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. |
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Accounts Receivable and Allowance for Doubtful Accounts | Accounts and Unbilled Receivables Accounts and unbilled receivables are recorded at cost, less the related allowance for doubtful accounts. The Company considers current information and events regarding the customers’ ability to repay their obligations, such as the length of time the receivable balance is outstanding, the customers’ credit worthiness and historical experience. Unbilled receivables relate to revenues recognized on multi-client surveys, imaging services and ocean bottom acquisition services on a proportionate basis, and on licensing of multi-client data libraries for which invoices have not yet been presented to the customer. |
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Unbilled Receivables | Accounts and Unbilled Receivables Accounts and unbilled receivables are recorded at cost, less the related allowance for doubtful accounts. The Company considers current information and events regarding the customers’ ability to repay their obligations, such as the length of time the receivable balance is outstanding, the customers’ credit worthiness and historical experience. Unbilled receivables relate to revenues recognized on multi-client surveys, imaging services and ocean bottom acquisition services on a proportionate basis, and on licensing of multi-client data libraries for which invoices have not yet been presented to the customer. |
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Inventories | Inventories Inventories are stated at the lower of cost (primarily first-in, first-out method) or market. The Company provides reserves for estimated obsolescence or excess inventory equal to the difference between cost of inventory and its estimated market value based upon assumptions about future demand for the Company’s products, market conditions and the risk of obsolescence driven by new product introductions. |
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Property, Plant, Equipment and Seismic Rental Equipment | Property, Plant, Equipment and Seismic Rental Equipment Property, plant, equipment and seismic rental equipment are stated at cost. Depreciation expense is provided straight-line over the following estimated useful lives:
Expenditures for renewals and betterments are capitalized; repairs and maintenance are charged to expense as incurred. The cost and accumulated depreciation of assets sold or otherwise disposed of are removed from the accounts and any gain or loss is reflected in operating expenses. The Company evaluates the recoverability of long-lived assets, including property, plant, equipment and seismic rental equipment, when indicators of impairment exist, relying on a number of factors including operating results, business plans, economic projections and anticipated future cash flows. Impairment in the carrying value of an asset held for use is recognized whenever anticipated future cash flows (undiscounted) from an asset are estimated to be less than its carrying value. The amount of the impairment recognized is the difference between the carrying value of the asset and its fair value. |
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Multi-Client Data Library | The Company’s method of amortizing the costs of an in-process multi-client data library (the period during which the seismic data is being acquired and/or processed, referred to as the “new venture” phase) consists of determining the percentage of actual revenue recognized to the total estimated revenues (which includes both revenues estimated to be realized during the new venture phase and estimated revenues from the licensing of the resulting “on-the-shelf” data survey) and multiplying that percentage by the total cost of the project (the sales forecast method). The Company considers a multi-client data survey to be complete when all work on the creation of the seismic data is finished and that data survey is available for licensing. Once a multi-client data survey is complete, the data survey is considered “on-the-shelf” and the Company’s method of amortization is then the greater of (i) the sales forecast method or (ii) the straight-line basis over a four-year period. The greater amount of amortization resulting from the sales forecast method or the straight-line amortization policy is applied on a cumulative basis at the individual survey level. Under this policy, the Company first records amortization using the sales forecast method. The cumulative amortization recorded for each survey is then compared with the cumulative straight-line amortization. The four-year period utilized in this cumulative comparison commences when the data survey is determined to be complete. If the cumulative straight-line amortization is higher for any specific survey, additional amortization expense is recorded, resulting in accumulated amortization being equal to the cumulative straight-line amortization for such survey. The Company has determined the amortization period of four years based upon its historical experience that indicates that the majority of its revenues from multi-client surveys are derived during the acquisition and processing phases and during four years subsequent to survey completion. The Company estimates the ultimate revenue expected to be derived from a particular seismic data survey over its estimated useful economic life to determine the costs to amortize, if greater than straight-line amortization. That estimate is made by the Company at the project’s initiation. For a completed multi-client survey, the Company reviews the estimate quarterly. If during any such review, the Company determines that the ultimate revenue for a survey is expected to be materially more or less than the original estimate of ultimate revenue for such survey, the Company decreases or increases (as the case may be) the amortization rate attributable to the future revenue from such survey. In addition, in connection with such reviews, the Company evaluates the recoverability of the multi-client data library, and, if required under Accounting Standards Codification (“ASC”) 360-10 “Impairment and Disposal of Long-Lived Assets,” records an impairment charge with respect to such data. For a discussion of impairments of the Company’s multi-client data library in 2014, see Footnote 2 “Cost Reduction Initiative, Impairments, Restructurings and Other Charges.” Multi-Client Data Library The multi-client data library consists of seismic surveys that are offered for licensing to customers on a non-exclusive basis. The capitalized costs include costs paid to third parties for the acquisition of data and related activities associated with the data creation activity and direct internal processing costs, such as salaries, benefits, computer-related expenses and other costs incurred for seismic data project design and management. |
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Equity Method Investments | Equity Method Investments In accordance with ASC 810 “Consolidation,” the Company determined that INOVA Geophysical is a variable interest entity because the Company’s voting rights with respect to INOVA Geophysical are not proportionate to its ownership interest and substantially all of INOVA Geophysical’s activities are conducted on behalf of the Company and BGP, a related party to the Company. The Company is not the primary beneficiary of INOVA Geophysical because it does not have the power to direct the activities of INOVA Geophysical that most significantly impact its economic performance. Accordingly, the Company does not consolidate INOVA Geophysical, but instead accounts for INOVA Geophysical using the equity method of accounting. Under this method, an investment is carried at the acquisition cost, plus the Company’s equity in undistributed earnings or losses since acquisition, less distributions received. As provided by ASC 815 “Investments,” the Company accounted for its share of earnings in INOVA Geophysical on a one fiscal quarter lag basis. See further discussion regarding the Company’s equity method investment, including the full write-down of its investment in 2014, in INOVA Geophysical at Footnote 15 “Equity Method Investments.” |
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Noncontrolling Interests | Noncontrolling Interests The Company has non-redeemable noncontrolling interests. Non-redeemable noncontrolling interests in majority-owned affiliates are reported as a separate component of equity in “Noncontrolling interests” in the Consolidated Balance Sheets. Redeemable noncontrolling interests include noncontrolling ownership interests which provide the holders the rights, at certain times, to require the Company to acquire their ownership interest in those entities. These interests are not considered to be permanent equity and are reported in the mezzanine section of the Consolidated Balance Sheets at the greater of their carrying value or redemption value at the balance sheet date. Net loss in the Consolidated Statements of Operations is attributable to both controlling and noncontrolling interests. |
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Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill is allocated to reporting units, which are either the operating segment or one reporting level below the operating segment. For purposes of performing the impairment test for goodwill as required by ASC 350 “Intangibles — Goodwill and Other,” (“ASC 350”) the Company established the following reporting units: E&P Technology & Services, Optimization Software & Services, Devices and Ocean Bottom Services. In accordance with ASC 350, the Company is required to evaluate the carrying value of its goodwill at least annually for impairment, or more frequently if facts and circumstances indicate that it is more likely than not impairment has occurred. The Company formally evaluates the carrying value of its goodwill for impairment as of December 31 for each of its reporting units. The Company first performs a qualitative assessment by evaluating relevant events or circumstances to determine whether it is more likely than not that the fair value of a reporting unit exceeds its carrying amount. If the Company is unable to conclude qualitatively that it is more likely than not that a reporting unit’s fair value exceeds its carrying value, then it will use a two-step quantitative assessment of the fair value of a reporting unit. To determine the fair value of these reporting units, the Company uses a discounted future returns valuation model, which includes a variety of level 3 inputs. The key inputs for the model include the operational three-year forecast for the Company and the then-current market discount factor. Additionally, the Company compares the sum of the estimated fair values of the individual reporting units less consolidated debt to the Company’s overall market capitalization as reflected by the Company’s stock price. If the carrying value of a reporting unit that includes goodwill is determined to be more than the fair value of the reporting unit, there exists the possibility of impairment of goodwill. An impairment loss of goodwill is measured in two steps by first allocating the fair value of the reporting unit to net assets and liabilities including recorded and unrecorded intangible assets to determine the implied carrying value of goodwill. The next step is to measure the difference between the carrying value of goodwill and the implied carrying value of goodwill, and, if the implied carrying value of goodwill is less than the carrying value of goodwill, an impairment loss is recorded equal to the difference. See further discussion below at Footnote 10 “Goodwill.” The intangible assets, other than goodwill, relate to customer relationships. The Company amortizes its customer relationship intangible assets on an accelerated basis over a 10- to 15-year period, using the undiscounted cash flows of the initial valuation models. The Company uses an accelerated basis as these intangible assets were initially valued using an income approach, with an attrition rate that resulted in a pattern of declining cash flows over a 10- to 15-year period. Following the guidance of ASC 360 “Property, Plant and Equipment,” the Company reviews the carrying values of these intangible assets for impairment if events or changes in the facts and circumstances indicate that their carrying value may not be recoverable. Any impairment determined is recorded in the current period and is measured by comparing the fair value of the related asset to its carrying value. See further discussion below at Footnote 9 “Details of Selected Balance Sheet Accounts — Intangible Assets.” |
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Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company’s financial instruments include cash and cash equivalents, short-term investments, accounts and unbilled receivables, accounts payable, accrued multi-client data library royalties and long-term debt. The carrying amounts of cash and cash equivalents, short-term investments, accounts and unbilled receivables, accounts payable and accrued multi-client data library royalties approximate fair value due to the highly liquid nature of these instruments. The fair value of the long-term debt is calculated using a market approach based upon Level 1 inputs, including an active market price. |
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Revenue Recognition | Revenue Recognition The Company derives revenue from the sale of (i) multi-client and proprietary surveys, licenses of “on-the-shelf” data libraries and imaging services within its E&P Technology & Services segment; (ii) seismic data acquisition systems and other seismic equipment; (iii) seismic command and control software systems and software solutions for operations management within its E&P Operations Optimization segment; and (iv) fully-integrated ocean bottom seismic (“OBS”) solutions that include survey design and planning and data acquisition within its Ocean Bottom Services segment. All revenues of the E&P Technology & Services and Ocean Bottom Services segments and the services component of revenues for the Optimization Software & Services group within the E&P Operations Optimization segment are classified as services revenues. All other revenues are classified as product revenues. Multi-Client and Proprietary Surveys, Data Libraries and Imaging Services — As multi-client surveys are being designed, acquired and/or processed (referred to as the “new venture” phase), the Company enters into non-exclusive licensing arrangements with its customers. License revenues from these new venture survey projects are recognized during the new venture phase as the seismic data is acquired and/or processed on a proportionate basis as work is performed. Under this method, the Company recognizes revenues based upon quantifiable measures of progress, such as kilometers acquired or days processed. Upon completion of a multi-client seismic survey, the seismic survey is considered “on-the-shelf,” and licenses to the survey data are granted to customers on a non-exclusive basis. Revenues on licenses of completed multi-client data surveys are recognized when (a) a signed final master geophysical data license agreement and accompanying supplemental license agreement are returned by the customer; (b) the purchase price for the license is fixed or determinable; (c) delivery or performance has occurred; (d) and no significant uncertainty exists as to the customer’s obligation, willingness or ability to pay. In limited situations, the Company has provided the customer with a right to exchange seismic data for another specific seismic data set. In these limited situations, the Company recognizes revenue at the earlier of the customer exercising its exchange right or the expiration of the customer’s exchange right. The Company also performs seismic surveys under contracts to specific customers, whereby the seismic data is owned by those customers. Revenue is recognized as the seismic data is acquired and/or processed on a proportionate basis as work is performed. The Company uses quantifiable measures of progress consistent with its multi-client surveys. Revenues from all imaging and other services are recognized when (a) persuasive evidence of an arrangement exists, (b) the price is fixed or determinable, and (c) collectability is reasonably assured. Revenues from contract services performed on a dayrate basis are recognized as the service is performed. Acquisition Systems and Other Seismic Equipment — For the sales of acquisition systems and other seismic equipment, the Company follows the requirements of ASC 605-10 “Revenue Recognition” and recognizes revenue when (a) evidence of an arrangement exists; (b) the price to the customer is fixed and determinable; (c) collectibility is reasonably assured; and (d) the acquisition system or other seismic equipment is delivered to the customer and risk of ownership has passed to the customer, or, in the case in which a substantive customer-specified acceptance clause exists in the contract, the later of delivery or when the customer-specified acceptance is obtained. Software — For the sales of navigation, survey and quality control software systems, the Company follows the requirements of ASC 985-605 “Software Revenue Recognition” (“ASC 985-605”). The Company recognizes revenue from sales of these software systems when (a) evidence of an arrangement exists; (b) the price to the customer is fixed and determinable; (c) collectibility is reasonably assured; and (d) the software is delivered to the customer and risk of ownership has passed to the customer, or, in the limited case in which a substantive customer-specified acceptance clause exists, the later of delivery or when the customer-specified acceptance is obtained. These arrangements generally include the Company providing related services, such as training courses, engineering services and annual software maintenance. The Company allocates revenue to each element of the arrangement based upon vendor-specific objective evidence (“VSOE”) of fair value of the element or, if VSOE is not available for the delivered element, the residual method. In addition to perpetual software licenses, the Company offers time-based software licenses. For time-based licenses, the Company recognizes revenue ratably over the contract term, which is generally two to five years. Ocean Bottom Services — The Company recognizes revenues as they are realized and earned and can be reasonably measured, based on contractual dayrates or on a fixed-price basis, and when collectability is reasonably assured. In connection with acquisition contracts, the Company may receive revenues for preparation and mobilization of equipment and personnel or for capital improvements to vessels. The Company defers the revenues earned and incremental costs incurred that are directly related to contract preparation and mobilization and recognizes such revenues and costs over the primary contract term of the acquisition project. The Company uses the ratio of square kilometers acquired as a percentage of the total square kilometers expected to be acquired over the primary term of the contract to recognize deferred revenues and amortize, in cost of services, the costs related to contract preparation and mobilization. The Company recognizes the costs of relocating vessels without contracts to more promising market sectors as such costs are incurred. Upon completion of acquisition contracts, the Company recognizes in earnings any demobilization fees received and expenses incurred. Multiple-element Arrangements — When separate elements (such as an acquisition system, other seismic equipment and/or imaging and acquisition services) are contained in a single sales arrangement, or in related arrangements with the same customer, the Company follows the requirements of ASC 605-25 “Accounting for Multiple-Element Revenue Arrangement” (“ASC 605-25”). This guidance requires that arrangement consideration be allocated at the inception of an arrangement to all deliverables using the relative selling price method. The Company allocates arrangement consideration to each deliverable qualifying as a separate unit of accounting in an arrangement based on its relative selling price. The Company determines its selling price using VSOE, if it exists, or otherwise third-party evidence (“TPE”). If neither VSOE nor TPE of selling price exists for a unit of accounting, the Company uses estimated selling price (“ESP”). The Company generally expects that it will not be able to establish TPE due to the nature of the markets in which the Company competes, and, as such, the Company typically will determine its selling price using VSOE or, if not available, ESP. VSOE is generally limited to the price charged when the same or similar product is sold on a standalone basis. If a product is seldom sold on a standalone basis, it is unlikely that the Company can determine VSOE for the product. The objective of ESP is to determine the price at which the Company would transact if the product were sold by the Company on a standalone basis. The Company’s determination of ESP involves a weighting of several factors based on the specific facts and circumstances of the arrangement. Specifically, the Company considers the anticipated margin on the particular deliverable, the selling price and profit margin for similar products and the Company’s ongoing pricing strategy and policies. |
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Product Warranty Revenue Recognition | Product Warranty — The Company generally warrants that its manufactured equipment will be free from defects in workmanship, materials and parts. Warranty periods generally range from 30 days to three years from the date of original purchase, depending on the product. The Company provides for estimated warranty as a charge to costs of sales at the time of sale. However, new information may become available, or circumstances (such as applicable laws and regulations) may change, thereby resulting in an increase or decrease in the amount required to be accrued for such matters (and therefore a decrease or increase in reported net income in the period of such change). In limited cases, the Company has provided indemnification of customers for potential intellectual property infringement claims relating to products sold. |
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Research, Development and Engineering | Research, Development and Engineering Research, development and engineering costs primarily relate to activities that are designed to improve the quality of the subsurface image and overall acquisition economics of the Company’s customers. The costs associated with these activities are expensed as incurred. These costs include prototype material and field testing expenses, along with the related salaries and stock-based compensation, facility costs, consulting fees, tools and equipment usage and other miscellaneous expenses associated with these activities. |
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Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation under the provisions of ASC 718, “Compensation – Stock Compensation” (“ASC 718”). The Company estimates the value of stock option awards on the date of grant using the Black-Scholes option pricing model. The determination of the fair value of stock-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of subjective variables. These variables include, but are not limited to, expected stock price volatility over the term of the awards, actual and projected employee stock option exercise behaviors, risk-free interest rate and expected dividends. The Company recognizes stock-based compensation on the straight-line basis over the service period of each award (generally the award’s vesting period). |
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Income Taxes | Income Taxes Income taxes are accounted for under the liability method. Deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, including operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The Company records a valuation allowance when it is more likely than not that all or a portion of deferred tax assets will not be realized (see Footnote 6 “Income Taxes”). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. |
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Comprehensive Net Loss | Comprehensive Net Loss Comprehensive net loss as shown in the Consolidated Statements of Comprehensive Loss and the balance in Accumulated Other Comprehensive Loss as shown in the Consolidated Balance Sheets as of December 31, 2016 and 2015, consist of foreign currency translation adjustments, equity interest in INOVA Geophysical’s accumulated other comprehensive loss and unrealized gains or losses on available-for-sale securities. |
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Foreign Currency Gains and Losses | Foreign Currency Gains and Losses Assets and liabilities of the Company’s subsidiaries operating outside the United States that have a functional currency other than the U.S. dollar have been translated to U.S. dollars using the exchange rate in effect at the balance sheet date. Results of foreign operations have been translated using the average exchange rate during the periods of operation. Resulting translation adjustments have been recorded as a component of Accumulated Other Comprehensive Loss. Foreign currency transaction gains and losses are included in the Consolidated Statements of Operations in Other income as they occur. |
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Concentration of Foreign Sales Risk | Concentration of Foreign Sales Risk The majority of the Company’s foreign sales are denominated in U.S. dollars. For 2016, 2015 and 2014, international sales comprised 78%, 66% and 74%, respectively, of total net revenues. |
Summary of Significant Accounting Policies (Tables) |
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Summary of Property, Plant, Equipment and Seismic Rental Equipment | Property, plant, equipment and seismic rental equipment are stated at cost. Depreciation expense is provided straight-line over the following estimated useful lives:
A summary of property, plant, equipment and seismic rental equipment follows (in thousands):
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Schedule of Multi-Client Data Library | At December 31, 2016 and 2015, multi-client data library costs and accumulated amortization consisted of the following (in thousands):
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Cost Reduction Initiatives, Impairments, Restructurings and Other Charges (Tables) |
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Restructuring and Related Costs | During 2015, the Company recognized the following pre-tax charges and credits (in thousands):
During the twelve months ended December 31, 2016, the Company recognized the following pre-tax charges (in thousands):
During 2014, the Company recognized the following pre-tax charges and credits (in thousands):
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Segment and Geographic Information (Tables) |
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Schedule of Segment Information | A summary of segment information follows (in thousands):
(a) Includes a charge of $100.1 million to write down the multi-client data library, impacting gross profit (loss), in addition to charges for the impairment of intangible assets and severance-related charges within the E&P Technology & Services segment. (b) Includes a charge of $21.9 million to write down goodwill, impacting income (loss) from operations, in addition to charges for write-downs of inventory and receivables and severance-related charges related to our Devices group within our E&P Optimization Operations segment. |
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Schedule of Depreciation and Amortization by Segments |
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Segment Reporting of Assets by Segments and Geographical Areas |
A summary of total assets by geographic area follows (in thousands):
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Summary of net revenues by geographic area | A summary of net revenues by geographic area follows (in thousands):
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Long-term Debt and Lease Obligations (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Obligations |
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Debt Instrument Redemption Percentages | On or after May 15, 2015, the Company may on one or more occasions redeem all or a part of the Third Lien Notes at the redemption prices set forth below, plus accrued and unpaid interest and special interest, if any, on the Third Lien Notes redeemed during the twelve-month period beginning on May 15th of the years indicated below:
On or after December 15, 2019, the Company may on one or more occasions redeem all or a part of the Second Lien Notes at the redemption prices set forth below, plus accrued and unpaid interest and special interest, if any, on the Second Lien Notes redeemed during the twelve-month period beginning on December 15th of the years indicated below:
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Equipment Capital Leases | A summary of future principal obligations under long-term debt and equipment capital lease obligations follows (in thousands):
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sources of income (loss) before income taxes | The sources of income (loss) before income taxes are as follows (in thousands):
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Components of income taxes | Components of income taxes are as follows (in thousands):
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Reconciliation of the expected income tax expense on income (loss) before income taxes using the statutory federal income tax | A reconciliation of the expected income tax expense on income (loss) before income taxes using the statutory federal income tax rate of 35% for 2016, 2015 and 2014 to income tax expense follows (in thousands):
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Tax effects of the cumulative temporary differences resulting in the net deferred income tax asset (liability) | The tax effects of the cumulative temporary differences resulting in the net deferred income tax asset (liability) are as follows (in thousands):
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Aggregate changes in gross amount of unrecognized tax benefits | During 2016, 2015 and 2014, the aggregate changes in the Company’s total gross amount of unrecognized tax benefits are summarized as follows (in thousands):
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Other Income (Expense) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Income (Expense) | A summary of other income follows (in thousands):
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Details of Selected Balance Sheet Accounts (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of accounts receivable |
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Summary of inventories |
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Summary of Property, Plant, Equipment and Seismic Rental Equipment | Property, plant, equipment and seismic rental equipment are stated at cost. Depreciation expense is provided straight-line over the following estimated useful lives:
A summary of property, plant, equipment and seismic rental equipment follows (in thousands):
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Summary of finite intangible assets, net |
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Estimated future amortization expense | A summary of the estimated amortization expense for the next three years follows (in thousands):
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Summary of accrued expenses |
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Goodwill (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in the carrying amount of goodwill | The following is a summary of the changes in the carrying amount of goodwill for the years ended December 31, 2016 and 2015 (in thousands):
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Stockholders' Equity and Stock-based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transactions Under the Stock Option Plans | Transactions under the stock option plans are summarized as follows:
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Summary of Stock Options Outstanding | Stock options outstanding at December 31, 2016 are summarized as follows:
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Additional Information Related to the Company's Stock Options | Additional information related to the Company’s stock options follows:
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Status of the Company's Restricted Stock and Restricted Stock Unit Awards | The status of the Company’s restricted stock and restricted stock unit awards for 2016 follows:
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Schedule of Valuation Assumptions |
Pursuant to ASC 718, “Compensation – Stock Compensation,” the stock appreciation rights 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:
The Company calculated the fair value of each stock option on the date of grant using the Black-Scholes option pricing model. The following assumptions were used for each respective period:
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Summary of Stock-based Compensation Expense | The following table summarizes stock-based compensation expense for the years ended December 31, 2016, 2015 and 2014 as follows (in thousands):
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Supplemental Cash Flow Information and Non-cash Activity (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Elements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information and Non-cash Activity | Supplemental disclosure of cash flow information follows (in thousands):
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Operating Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||
Leases, Operating [Abstract] | |||||||||||||||||||||||||||||||||||||
Future Rental Commitments Over the Next Five Years Under Non-cancelable Operating Leases | A summary of future rental commitments over the next five years under non-cancelable operating leases follows (in thousands):
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Acquisition of OceanGeo (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition, Pro Forma Information | Amounts presented below are in thousands, except for the per share amounts:
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Selected Quarterly Information (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of selected quarterly information | A summary of selected quarterly information follows (in thousands, except per share amounts):
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Condensed Consolidating Financial Information (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Balance Sheet | This condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements and notes.
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Condensed Income Statement |
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Condensed Cash Flow Statement |
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Summary of Significant Accounting Policies - Cash and Cash Equivalents and Foreign Currency Gains (Losses) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Cash and Cash Equivalents [Abstract] | |||
Short-term restricted cash | $ 0.8 | $ 0.5 | |
Foreign Currency Gains and Losses | |||
Total foreign currency transaction gains (losses) | $ (3.3) | $ (2.1) | $ (1.8) |
Summary of Significant Accounting Policies - Property, Plant, Equipment and Seismic Rental Equipment Useful Lives (Details) |
12 Months Ended |
---|---|
Dec. 31, 2016 | |
Minimum [Member] | Machinery and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, equipment and seismic rental equipment useful life | 3 years |
Minimum [Member] | Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, equipment and seismic rental equipment useful life | 5 years |
Minimum [Member] | Seismic rental equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, equipment and seismic rental equipment useful life | 3 years |
Minimum [Member] | Leased equipment and other [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, equipment and seismic rental equipment useful life | 3 years |
Maximum [Member] | Machinery and equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, equipment and seismic rental equipment useful life | 7 years |
Maximum [Member] | Buildings [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, equipment and seismic rental equipment useful life | 25 years |
Maximum [Member] | Seismic rental equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, equipment and seismic rental equipment useful life | 5 years |
Maximum [Member] | Leased equipment and other [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant, equipment and seismic rental equipment useful life | 10 years |
Summary of Significant Accounting Policies - Multi-client Data Library Costs and Accumulated Amortization (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|
Accounting Policies [Abstract] | |||
Multi-client data library capitalized income | $ 6,600 | $ 6,100 | $ 8,300 |
Multi Client Data Creation Cost [Abstract] | |||
Gross costs of multi-client data creation | 906,306 | 899,273 | |
Less accumulated amortization | (680,770) | (647,435) | |
Less impairments to multi-client data library | (119,601) | (119,601) | |
Total | $ 105,935 | $ 132,237 |
Summary of Significant Accounting Policies - Goodwill and Other Intangible Assets (Details) |
12 Months Ended |
---|---|
Dec. 31, 2016 | |
Customer relationships [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets other than goodwill, estimated period of benefit | 10 years |
Customer relationships [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Intangible assets other than goodwill, estimated period of benefit | 15 years |
Goodwill [Member] | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |
Operational forecast period used in fair value inputs | 3 years |
Summary of Significant Accounting Policies - Revenue Recognition and Product Warranty (Details) |
12 Months Ended |
---|---|
Dec. 31, 2016 | |
Minimum [Member] | |
Product Information [Line Items] | |
Time based licenses, term revenue recognized | 2 years |
Range of product warranty | 30 days |
Maximum [Member] | |
Product Information [Line Items] | |
Time based licenses, term revenue recognized | 5 years |
Range of product warranty | 3 years |
Summary of Significant Accounting Policies - Debt Issuance Costs (Details) - Accounting Standards Update 2015-03 [Member] $ in Millions |
Dec. 31, 2015
USD ($)
|
---|---|
Other Assets [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Debt issuance costs, reclassified | $ (3.3) |
Long-term Debt [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Debt issuance costs, reclassified | $ 3.3 |
Summary of Significant Accounting Policies - Concentration of Foreign Sales Risk (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Geographic Concentration Risk [Member] | Sales Revenue, Net [Member] | Non-US [Member] | |||
Concentration Risk [Line Items] | |||
International sales comprised of total net revenue | 78.00% | 66.00% | 74.00% |
Cost Reduction Initiatives, Impairments, Restructurings and Other Charges - Narrative (Details) $ in Thousands |
3 Months Ended | 10 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Dec. 31, 2014
USD ($)
|
Sep. 30, 2015
geographical_hubs
location
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Apr. 30, 2016 |
|
Restructuring Cost and Reserve [Line Items] | ||||||
Percentage of headcount reduction as of period end | 12.00% | |||||
Percentage of headcount reduction during period | 10.00% | 50.00% | ||||
Percentages salaries reduced during year | 10.00% | |||||
Write-down of excess and obsolete inventory | $ 429 | $ 151 | $ 6,952 | |||
Write-down of certain receivables | 8,200 | |||||
Impairment of multi-client data library | $ 0 | 399 | 100,100 | |||
INOVA Geophysical [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Write-down of note receivable from OceanGeo | 30,700 | |||||
Charges related to excess and obsolete inventory and customer bad debts | 3,500 | |||||
Outstanding receivables due from INOVA | $ 5,500 | $ 5,500 | ||||
Severance charges [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring charges, incurred costs | $ 2,300 | |||||
Systems [Member] | Towed Streamer [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of geographical hubs | geographical_hubs | 2 | |||||
Number of locations | location | 2 |
Cost Reduction Initiatives, Impairments, Restructurings and Other Charges - Restructuring Pre-tax Charges (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | $ 8,391 | ||
Cost of goods sold [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | $ 1,077 | 3,981 | $ 108,542 |
Operating expenses [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 932 | 3,233 | 33,400 |
Equity in earnings (losses) of investments [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 34,199 | ||
Other (income) expense [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 2,182 | 1,618 | |
Income tax benefit [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 4,191 | (269) | |
Net income attributable to noncontrolling interest [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | (172) | ||
Income (loss) before income taxes [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 176,141 | ||
Severance charges [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 5,600 | ||
Severance charges [Member] | Cost of goods sold [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 1,077 | 3,981 | 391 |
Severance charges [Member] | Operating expenses [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 932 | 1,910 | 1,902 |
Severance charges [Member] | Other (income) expense [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 0 | ||
Severance charges [Member] | Income tax benefit [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 2,009 | (119) | |
Severance charges [Member] | Net income attributable to noncontrolling interest [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | (172) | ||
Severance charges [Member] | Income (loss) before income taxes [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 2,293 | ||
Loss on bond exchange | Cost of goods sold [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 0 | ||
Loss on bond exchange | Operating expenses [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 0 | ||
Loss on bond exchange | Other (income) expense [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 2,182 | ||
Loss on bond exchange | Income tax benefit [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | $ 2,182 | ||
Facility charges [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 2,791 | ||
Facility charges [Member] | Cost of goods sold [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 0 | ||
Facility charges [Member] | Operating expenses [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 1,323 | ||
Facility charges [Member] | Other (income) expense [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 1,618 | ||
Facility charges [Member] | Income tax benefit [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | $ (150) | ||
Multi-client data library, net [Member] | Cost of goods sold [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 100,100 | ||
Multi-client data library, net [Member] | Income (loss) before income taxes [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 100,100 | ||
Equity method investments [Member] | Equity in earnings (losses) of investments [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 34,199 | ||
Equity method investments [Member] | Income (loss) before income taxes [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 34,199 | ||
Goodwill and Intangible Assets [Member] | Operating expenses [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 23,284 | ||
Goodwill and Intangible Assets [Member] | Income (loss) before income taxes [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 23,284 | ||
Asset write-downs and other [Member] | Cost of goods sold [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 8,051 | ||
Asset write-downs and other [Member] | Operating expenses [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | 8,214 | ||
Asset write-downs and other [Member] | Income (loss) before income taxes [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax restructuring charges | $ 16,265 |
Segment and Geographic Information - Summary of Segment Information (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 31, 2016
segment
|
Dec. 31, 2016
USD ($)
|
Sep. 30, 2016
USD ($)
|
Jun. 30, 2016
USD ($)
|
Mar. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Sep. 30, 2015
USD ($)
|
Jun. 30, 2015
USD ($)
|
Mar. 31, 2015
USD ($)
|
Dec. 31, 2016
segment
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
|
Segment Reporting Information [Line Items] | |||||||||||||
Number of operating segments | segment | 4 | 3 | |||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||||
Revenues | $ 35,369 | $ 78,622 | $ 36,152 | $ 22,665 | $ 77,466 | $ 66,674 | $ 36,795 | $ 40,578 | $ 172,808 | $ 221,513 | $ 509,558 | ||
Gross profit (loss) | 8,344 | 31,765 | 4,853 | (8,930) | 22,818 | 11,108 | (10,135) | (15,788) | 36,032 | 8,003 | 62,223 | ||
Income (loss) from operations | (8,318) | 11,864 | (16,588) | (30,129) | (380) | (12,874) | (40,689) | (46,689) | (43,171) | (100,632) | (117,929) | ||
Interest expense, net | (4,442) | (4,607) | (4,702) | (4,734) | (4,667) | (4,854) | (4,607) | (4,625) | (18,485) | (18,753) | (19,382) | ||
Equity in losses of investments | 0 | 0 | (49,485) | ||||||||||
Other income (expense) | $ 4,974 | $ (2,027) | $ (1,717) | $ 120 | $ 240 | $ (346) | $ 101,600 | $ (3,219) | 1,350 | 98,275 | 79,860 | ||
Loss before income taxes | (60,306) | (21,110) | (106,936) | ||||||||||
Impairment of multi-client data library | 0 | 399 | 100,100 | ||||||||||
Operating segments [Member] | |||||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||||
Revenues | 172,808 | 221,513 | 509,558 | ||||||||||
Gross profit (loss) | $ 36,032 | $ 8,003 | $ 62,223 | ||||||||||
Gross margin | 21.00% | 4.00% | 12.00% | ||||||||||
Operating segments [Member] | Devices and Optimization Software & Services [Member] | |||||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||||
Revenues | $ 43,502 | $ 64,263 | $ 128,410 | ||||||||||
Operating segments [Member] | E & P Technology & Services [Member] | |||||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||||
Revenues | 92,889 | 157,250 | 277,904 | ||||||||||
Gross profit (loss) | $ 4,708 | $ 13,508 | $ (24,345) | ||||||||||
Gross margin | 5.00% | 9.00% | (9.00%) | ||||||||||
Income (loss) from operations | $ (16,446) | $ (24,941) | $ (80,653) | ||||||||||
Impairment of multi-client data library | 100,100 | ||||||||||||
Operating segments [Member] | E & P Technology & Services [Member] | New Venture [Member] | |||||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||||
Revenues | 27,362 | 48,294 | 98,649 | ||||||||||
Operating segments [Member] | E & P Technology & Services [Member] | Data Library [Member] | |||||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||||
Revenues | 39,989 | 63,326 | 66,180 | ||||||||||
Operating segments [Member] | E & P Technology & Services [Member] | New Venture and Data Library [Member] | |||||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||||
Revenues | 67,351 | 111,620 | 164,829 | ||||||||||
Operating segments [Member] | E & P Technology & Services [Member] | Imaging Services [Member] | |||||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||||
Revenues | 25,538 | 45,630 | 113,075 | ||||||||||
Operating segments [Member] | E & P Operations Optimization [Member] | |||||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||||
Gross profit (loss) | $ 21,745 | $ 33,995 | $ 66,951 | ||||||||||
Gross margin | 50.00% | 53.00% | 52.00% | ||||||||||
Income (loss) from operations | $ 9,652 | $ 20,131 | $ 20,201 | ||||||||||
Write down of goodwill | 21,900 | ||||||||||||
Operating segments [Member] | E & P Operations Optimization [Member] | Devices [Member] | |||||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||||
Revenues | 26,746 | 36,269 | 88,417 | ||||||||||
Operating segments [Member] | E & P Operations Optimization [Member] | Optimization Software and Services [Member] | |||||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||||
Revenues | 16,756 | 27,994 | 39,993 | ||||||||||
Operating segments [Member] | Ocean Bottom Services [Member] | |||||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||||
Revenues | 36,417 | 0 | 103,244 | ||||||||||
Gross profit (loss) | $ 9,579 | $ (39,500) | $ 19,617 | ||||||||||
Gross margin | 26.00% | 0.00% | 19.00% | ||||||||||
Income (loss) from operations | $ (1,756) | $ (55,080) | $ (4,440) | ||||||||||
Support and other [Member] | |||||||||||||
Reclassified its previously reported results to reflect segment changes | |||||||||||||
Income (loss) from operations | $ (34,621) | $ (40,742) | $ (53,037) |
Segment and Geographic Information - Depreciation and Amortization (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Depreciation and amortization | |||
Depreciation and amortization (including multi-client data library) | $ 55,310 | $ 62,311 | $ 92,030 |
Operating segments [Member] | E & P Technology & Services [Member] | |||
Depreciation and amortization | |||
Depreciation and amortization (including multi-client data library) | 44,100 | 51,014 | 80,138 |
Operating segments [Member] | E & P Operations Optimization [Member] | |||
Depreciation and amortization | |||
Depreciation and amortization (including multi-client data library) | 1,780 | 2,869 | 2,849 |
Operating segments [Member] | Ocean Bottom Services [Member] | |||
Depreciation and amortization | |||
Depreciation and amortization (including multi-client data library) | 7,511 | 6,158 | 6,517 |
Support and other [Member] | |||
Depreciation and amortization | |||
Depreciation and amortization (including multi-client data library) | $ 1,919 | $ 2,270 | $ 2,526 |
Segment and Geographic Information - Summary of Total Assets (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Segment Reporting of Assets by Segments and Geographical Areas | ||
Total assets by geographic area | $ 313,216 | $ 435,088 |
North America [Member] | ||
Segment Reporting of Assets by Segments and Geographical Areas | ||
Total assets by geographic area | 145,013 | 225,847 |
Europe [Member] | ||
Segment Reporting of Assets by Segments and Geographical Areas | ||
Total assets by geographic area | 61,329 | 84,392 |
Middle East [Member] | ||
Segment Reporting of Assets by Segments and Geographical Areas | ||
Total assets by geographic area | 72,984 | 75,390 |
Latin America [Member] | ||
Segment Reporting of Assets by Segments and Geographical Areas | ||
Total assets by geographic area | 23,891 | 35,349 |
Other [Member] | ||
Segment Reporting of Assets by Segments and Geographical Areas | ||
Total assets by geographic area | 9,999 | 14,110 |
Operating segments [Member] | E & P Technology & Services [Member] | ||
Segment Reporting of Assets by Segments and Geographical Areas | ||
Total assets by geographic area | 159,965 | 243,067 |
Operating segments [Member] | E & P Operations Optimization [Member] | ||
Segment Reporting of Assets by Segments and Geographical Areas | ||
Total assets by geographic area | 76,992 | 98,161 |
Operating segments [Member] | Ocean Bottom Services [Member] | ||
Segment Reporting of Assets by Segments and Geographical Areas | ||
Total assets by geographic area | 29,908 | 35,792 |
Support and other [Member] | ||
Segment Reporting of Assets by Segments and Geographical Areas | ||
Total assets by geographic area | $ 46,351 | $ 58,068 |
Segment and Geographic Information - Net Revenues by Geographic Area (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Summary of net revenues by geographic area | |||||||||||
Net revenues | $ 35,369 | $ 78,622 | $ 36,152 | $ 22,665 | $ 77,466 | $ 66,674 | $ 36,795 | $ 40,578 | $ 172,808 | $ 221,513 | $ 509,558 |
Europe [Member] | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | 41,674 | 72,577 | 100,188 | ||||||||
Africa [Member] | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | 41,417 | 13,182 | 75,507 | ||||||||
North America [Member] | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | 38,005 | 74,634 | 130,224 | ||||||||
Latin America [Member] | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | 24,090 | 16,406 | 111,078 | ||||||||
Asia Pacific [Member] | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | 16,226 | 19,135 | 49,881 | ||||||||
Middle East [Member] | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | 9,467 | 14,571 | 39,142 | ||||||||
Commonwealth of Independent States [Member] | |||||||||||
Summary of net revenues by geographic area | |||||||||||
Net revenues | $ 1,929 | $ 11,008 | $ 3,538 |
Long-term Debt and Lease Obligations - Obligations (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Apr. 28, 2016 |
Dec. 31, 2015 |
---|---|---|---|
Obligations | |||
Total debt | $ 158,790 | $ 182,992 | |
Costs associated with issuances of debt | (5,137) | (3,328) | |
Current portion of long-term debt and lease obligations | (14,581) | (7,912) | |
Non-current portion of long-term debt and lease obligations | 144,209 | 175,080 | |
Senior secured notes [Member] | |||
Obligations | |||
Total debt | 28,497 | 175,000 | |
Revolving line of credit [Member] | |||
Obligations | |||
Total debt | 10,000 | 0 | |
Equipment capital leases [Member] | |||
Obligations | |||
Total debt | 3,446 | 9,762 | |
Other debt obligations [Member] | |||
Obligations | |||
Total debt | 1,415 | 1,558 | |
Senior Secured Second Priority Notes Due 2021 (Second Lien Notes) [Member] | Senior secured notes [Member] | |||
Obligations | |||
Total debt | $ 120,569 | $ 120,600 | $ 0 |
Long-term Debt and Lease Obligations - Narrative (Details) |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Apr. 28, 2016
USD ($)
$ / shares
shares
|
Apr. 27, 2016
USD ($)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Aug. 04, 2015
USD ($)
|
Aug. 31, 2014
USD ($)
|
May 31, 2013
USD ($)
|
|
Debt Instrument [Line Items] | ||||||||
Indebtedness under the Credit Facility | $ 158,790,000 | $ 182,992,000 | ||||||
Principal purchased for cash | $ 8,634,000 | 7,452,000 | $ 12,998,000 | |||||
Interest accrues under the capital leases | 4.32% | |||||||
Line of credit [Member] | Revolving line of credit [Member] | PNC Bank, National Association (PNC) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Current borrowing capacity | $ 25,200,000 | $ 40,000,000 | $ 80,000,000 | |||||
Increase in applicable margin due to amendment to Credit Facility | 0.50% | |||||||
Number of days prior to stated maturity borrowing capacity reduced by reserve | 90 days | |||||||
Maximum amount of certain permitted junior indebtedness | $ 200,000,000 | $ 175,000,000 | ||||||
Limit for multi-client liquidation component | 15,000,000 | |||||||
Excess availability required to pay cash dividends or repurchase common stock | 20,000,000.0 | |||||||
Threshold for borrowing base formula | 20,000,000.0 | |||||||
Threshold for borrowers' level of liquidity | $ 20,000,000.0 | |||||||
Number of days covenants must be in place | 90 days | |||||||
Excess availability required to pay cash dividends or repurchase common stock, required for ninety days | $ 20,000,000.0 | |||||||
Threshold for borrowing base formula, required for ninety days | 20,000,000.0 | |||||||
Threshold for borrowers' level of liquidity, required for ninety days | 20,000,000.0 | |||||||
Maximum cash dividends and stock repurchases permitted each fiscal year | 10,000,000.0 | |||||||
Maximum cash dividends and stock repurchases permitted in aggregate | 40,000,000.0 | |||||||
Required liquidity maintained five consecutive business days | 7,500,000 | |||||||
Required liquidity maintained any business day | 6,500,000 | |||||||
Excess availability to borrow | 15,200,000 | |||||||
Line of credit [Member] | Revolving line of credit [Member] | PNC Bank, National Association (PNC) [Member] | Conversion Of Third Lien Notes For Second Lien Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt exchange conversion ratio | 1 | |||||||
Line of credit [Member] | Revolving line of credit [Member] | PNC Bank, National Association (PNC) [Member] | Debt Conversion, Prior To Extended Early Tender Deadline [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt exchange, ratio of principal to common stock shares (in dollars per share) | $ / shares | $ 100 | |||||||
Line of credit [Member] | Revolving line of credit [Member] | PNC Bank, National Association (PNC) [Member] | Debt Conversion, After Extended Early Tender Deadline [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt exchange, ratio of principal to common stock shares (in dollars per share) | $ / shares | $ 142.86 | |||||||
Line of credit [Member] | Revolving line of credit [Member] | PNC Bank, National Association (PNC) [Member] | Subsidiary Issuer [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of obligations secured by stock of Subsidiary Borrowers | 100.00% | |||||||
Line of credit [Member] | Revolving line of credit [Member] | PNC Bank, National Association (PNC) [Member] | ION International Holdings L.P. [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of obligations secured by stock of Subsidiary Borrowers | 65.00% | |||||||
Line of credit [Member] | Revolving line of credit [Member] | PNC Bank, National Association (PNC) [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 3.00% | 2.50% | ||||||
Line of credit [Member] | Revolving line of credit [Member] | PNC Bank, National Association (PNC) [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 4.00% | 3.50% | ||||||
Senior secured notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Indebtedness under the Credit Facility | $ 28,497,000 | 175,000,000 | ||||||
Principal amount of debt | $ 175,000,000 | |||||||
Stated rate on debt | 8.125% | |||||||
Senior secured notes [Member] | Senior Secured Second-Priority Notes Due 2018 (Third Lien Notes) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Indebtedness under the Credit Facility | $ 28,500,000 | 175,000,000 | ||||||
Stated rate on debt | 8.125% | |||||||
Principal purchased for cash | 15,000,000 | |||||||
Amount of debt purchased | 25,900,000 | |||||||
Amount of debt converted | $ 146,500,000 | |||||||
Percentage of original debt accepted In exchange of outstanding principal of new debt | 83.72% | |||||||
Senior secured notes [Member] | Senior Secured Second Priority Notes Due 2021 (Second Lien Notes) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Indebtedness under the Credit Facility | $ 120,600,000 | $ 120,569,000 | 0 | |||||
Stated rate on debt | 9.125% | |||||||
Senior secured notes [Member] | Senior Secured Second Priority Notes Due 2021 (Second Lien Notes) [Member] | Conversion Of Common Stock For Second Lien Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt converted for shares, issued shares | shares | 1,205,477 | |||||||
Senior secured notes [Member] | Senior Secured Second Priority Notes Due 2021 (Second Lien Notes) [Member] | Conversion Of Common Stock For Second Lien Notes [Member] | Treasury Stock [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt converted for shares, issued shares | shares | 508,464 | |||||||
Senior secured notes [Member] | Senior Secured Second Priority Notes Due 2021 (Second Lien Notes) [Member] | Early Stock Consideration [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt converted for shares, issued shares | shares | 1,204,980 | |||||||
Senior secured notes [Member] | Senior Secured Second Priority Notes Due 2021 (Second Lien Notes) [Member] | Stock Consideration [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt converted for shares, issued shares | shares | 497 | |||||||
Revolving line of credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Indebtedness under the Credit Facility | $ 10,000,000 | $ 0 | ||||||
Minimum [Member] | Line of credit [Member] | Revolving line of credit [Member] | PNC Bank, National Association (PNC) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed charge coverage ratio | 1.1 |
Long-term Debt and Lease Obligations - Redemption Percentages for Future Periods (Details) - Senior secured notes [Member] |
Dec. 15, 2019 |
May 15, 2015 |
---|---|---|
Senior Secured Second-Priority Notes Due 2018 (Third Lien Notes) [Member] | Year one [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Notes redemption percentages | 104.0625% | |
Senior Secured Second-Priority Notes Due 2018 (Third Lien Notes) [Member] | Year two [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Notes redemption percentages | 102.03125% | |
Senior Secured Second-Priority Notes Due 2018 (Third Lien Notes) [Member] | Year three and thereafter [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Notes redemption percentages | 100.00% | |
Senior Secured Second Priority Notes Due 2021 (Second Lien Notes) [Member] | Year one [Member] | Forecast [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Notes redemption percentages | 105.50% | |
Senior Secured Second Priority Notes Due 2021 (Second Lien Notes) [Member] | Year two [Member] | Forecast [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Notes redemption percentages | 103.50% | |
Senior Secured Second Priority Notes Due 2021 (Second Lien Notes) [Member] | Year three and thereafter [Member] | Forecast [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Notes redemption percentages | 100.00% |
Long-term Debt and Lease Obligations - Equipment Capital Leases (Details) $ in Thousands |
Dec. 31, 2016
USD ($)
|
---|---|
Equipment Capital Leases | |
2017 | $ 14,581 |
2018 | 28,748 |
2019 | 29 |
2020 | 0 |
2021 | 120,569 |
Thereafter | 0 |
Total | 163,927 |
Long-term Debt [Member] | |
Equipment Capital Leases | |
2017 | 10,000 |
2018 | 28,497 |
2019 | 0 |
2020 | 0 |
2021 | 120,569 |
Thereafter | 0 |
Total | 159,066 |
Capital Lease Obligations [Member] | |
Equipment Capital Leases | |
2017 | 3,166 |
2018 | 251 |
2019 | 29 |
2020 | 0 |
2021 | 0 |
Thereafter | 0 |
Total | 3,446 |
Other Financing [Member] | |
Equipment Capital Leases | |
2017 | 1,415 |
2018 | 0 |
2019 | 0 |
2020 | 0 |
2021 | 0 |
Thereafter | 0 |
Total | $ 1,415 |
Net Income (Loss) per Common Share (Details) - shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Earnings Per Share [Abstract] | |||
Number of shares issuable under anti-dilutive options | 847,635 | 560,797 | 599,068 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Sources of income (loss) before income taxes | |||||||||||
Domestic | $ (41,246) | $ 21,065 | $ (162,151) | ||||||||
Foreign | (19,060) | (42,175) | 55,215 | ||||||||
Loss before income taxes | (60,306) | (21,110) | (106,936) | ||||||||
Current: | |||||||||||
Federal | 0 | (4,715) | (678) | ||||||||
State and local | 28 | 41 | (42) | ||||||||
Foreign | 5,574 | 1,274 | 21,722 | ||||||||
Deferred: | |||||||||||
Federal | 0 | 2,726 | 1,004 | ||||||||
Foreign | (1,181) | 4,718 | (1,424) | ||||||||
Income tax expense | $ (1,444) | $ 3,316 | $ 2,256 | $ 293 | $ 447 | $ 2,082 | $ 532 | $ 983 | $ 4,421 | $ 4,044 | $ 20,582 |
Income Taxes (Details 1) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Reconciliation of the expected income tax expense on income (loss) before income taxes using the statutory federal income tax | |||||||||||
Expected income tax expense at 35% | $ (21,107) | $ (7,389) | $ (37,428) | ||||||||
Foreign tax rate differential | 5,932 | 1,769 | (10,481) | ||||||||
Foreign tax differences | (4,828) | 4,104 | 6,444 | ||||||||
State and local taxes | 28 | 41 | (42) | ||||||||
Nondeductible expenses | (259) | 578 | (1,584) | ||||||||
Goodwill impairment | 0 | 0 | 9,444 | ||||||||
Expired Capital Loss | 1,321 | 15,950 | 0 | ||||||||
Valuation allowance: | |||||||||||
Valuation allowance on equity in losses of INOVA Geophysical | 0 | 0 | 17,644 | ||||||||
Valuation allowance on expiring capital losses | (1,321) | (15,950) | 0 | ||||||||
Valuation allowance on operations | 24,655 | 4,941 | 36,585 | ||||||||
Income tax expense | $ (1,444) | $ 3,316 | $ 2,256 | $ 293 | $ 447 | $ 2,082 | $ 532 | $ 983 | $ 4,421 | $ 4,044 | $ 20,582 |
Income Taxes (Details 2) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Deferred income tax assets: | ||
Accrued expenses | $ 2,994 | $ 2,976 |
Allowance accounts | 4,861 | 6,739 |
Net operating loss carryforward | 98,896 | 95,640 |
Capital loss carryforward | 1,114 | 2,434 |
Equity method investment | 58,820 | 58,820 |
Original issue discount | 17,924 | 0 |
Basis in identified intangibles | 15,286 | 5,978 |
Tax credit carryforwards | 7,051 | 7,051 |
Contingency accrual | 0 | 7,700 |
Other | 10,755 | 12,138 |
Total non-current deferred income tax asset | 217,701 | 199,476 |
Valuation allowance | (217,589) | (194,255) |
Net non-current deferred income tax asset | 112 | 5,221 |
Deferred income tax liabilities: | ||
Other | (1,240) | 0 |
Unbilled receivables | (1,908) | (6,516) |
Basis in property, plant and equipment | (531) | (3,439) |
Total net non-current deferred income tax liability | $ (3,567) | $ (4,734) |
Income Taxes (Details 3) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Disclosure [Abstract] | |||
Beginning balance | $ 1,250 | $ 1,957 | $ 2,219 |
Increases in unrecognized tax benefits - prior year positions | 0 | 0 | 0 |
Increases in unrecognized tax benefits - current year positions | 49 | 75 | 263 |
Decreases in unrecognized tax benefits - prior year position | 0 | (782) | (525) |
Ending balance | $ 1,299 | $ 1,250 | $ 1,957 |
Income Taxes (Details Textual) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|
Operating Loss Carryforwards [Line Items] | ||||
Statutory federal income tax rate | 35.00% | 35.00% | 35.00% | |
Unrecognized tax benefits | $ 1,299 | $ 1,250 | $ 1,957 | $ 2,219 |
Outside book-over-tax basis difference in its foreign subsidiaries | 86,300 | |||
United States Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carry-forwards | 217,600 | |||
United States Tax Authority [Member] | Capital Loss Carryforward [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Capital Loss Carryforwards | 3,200 | |||
Foreign Tax Authority [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carry-forwards | $ 97,100 |
Legal Matters (Details) - WesternGeco [Member] |
1 Months Ended | 36 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 25, 2016
USD ($)
|
Aug. 31, 2012
USD ($)
|
Apr. 30, 2014
USD ($)
|
Oct. 31, 2013
USD ($)
|
Jun. 30, 2009
Patent
|
Jul. 02, 2015
USD ($)
|
Dec. 31, 2016
USD ($)
|
Nov. 24, 2016
USD ($)
|
Nov. 14, 2016
USD ($)
|
Nov. 13, 2016
USD ($)
|
Jun. 30, 2015
USD ($)
|
Mar. 31, 2015
USD ($)
|
May 31, 2014
USD ($)
|
|
Settled Litigation [Member] | |||||||||||||
Legal Matters (Textual) [Abstract] | |||||||||||||
Number of patent apparatus claims contained | Patent | 4 | ||||||||||||
Total damages awarded | $ 105,900,000 | $ 123,800,000 | |||||||||||
Prejudgment interest expense accrued | 10,900,000 | ||||||||||||
Settled Litigation [Member] | Lost Royalties [Member] | |||||||||||||
Legal Matters (Textual) [Abstract] | |||||||||||||
Total damages awarded | 12,500,000 | ||||||||||||
Settled Litigation [Member] | Lost Profits [Member] | |||||||||||||
Legal Matters (Textual) [Abstract] | |||||||||||||
Total damages awarded | $ 93,400,000 | $ 9,400,000 | $ 73,100,000 | $ 93,400,000 | |||||||||
Reduction in damages awarded in case | $ 3,000,000 | ||||||||||||
Accrual for loss contingency related to legal proceedings | $ 123,800,000 | ||||||||||||
Pending Litigation [Member] | |||||||||||||
Legal Matters (Textual) [Abstract] | |||||||||||||
Appeal bond | $ 65,000,000 | $ 120,000,000 | |||||||||||
Amount paid in royalty damages and interest | $ 20,800,000 | ||||||||||||
Accrual for loss contingency related to legal proceedings | $ 0 | $ 1,100,000 | $ 22,000,000 | $ 123,800,000 | |||||||||
Approximate amount of potential new loss contingency | $ 44,000,000 |
Other Income (Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Other Income and Expenses [Abstract] | |||||||||||
Reduction of (accrual for) loss contingency related to legal proceedings (Footnote 7) | $ 1,168 | $ 101,978 | $ 69,557 | ||||||||
Gain on sale of a product line | 0 | 0 | 6,522 | ||||||||
Gain on sale of cost method investments | 0 | 0 | 5,463 | ||||||||
Recovery of INOVA bad debts | 3,983 | 0 | 0 | ||||||||
Loss on bond exchange | (2,182) | 0 | 0 | ||||||||
Other income | (1,619) | (3,703) | (1,682) | ||||||||
Total other income (expense) | $ 4,974 | $ (2,027) | $ (1,717) | $ 120 | $ 240 | $ (346) | $ 101,600 | $ (3,219) | 1,350 | 98,275 | 79,860 |
Proceeds from sale of Source product line | 0 | 0 | 14,394 | ||||||||
Total proceeds from sale of cost method investments | 16,500 | ||||||||||
Proceeds from sale of cost method investments | $ 2,698 | $ 0 | $ 14,051 |
Details of Selected Balance Sheet Accounts - Accounts Receivable (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts receivable, principally trade | $ 22,214 | $ 49,284 |
Less allowance for doubtful accounts | (1,444) | (4,919) |
Accounts receivable, net | $ 20,770 | $ 44,365 |
Details of Selected Balance Sheet Accounts - Inventories (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Summary of inventories: | |||
Raw materials and purchased subassemblies | $ 21,454 | $ 34,949 | |
Work-in-process | 2,255 | 8,478 | |
Finished goods | 6,581 | 13,769 | |
Reserve for excess and obsolete inventories | (15,049) | (24,475) | |
Total | 15,241 | 32,721 | |
Property, Plant and Equipment [Line Items] | |||
Transfer of inventory to property, plant and equipment | 17,662 | $ 15,936 | $ 10,149 |
Ocean Bottom Services [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Transfer of inventory to property, plant and equipment | 17,700 | ||
Increase in reserve for excess and obsolete inventories | $ 400 |
Details of Selected Balance Sheet Accounts - Property, Plant and Equipment (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment | $ 210,553 | $ 214,598 | |
Less accumulated depreciation | (143,065) | (142,571) | |
Property, plant, equipment and seismic rental equipment net | 67,488 | 72,027 | |
Transfer of inventory to property, plant and equipment | 17,662 | 15,936 | $ 10,149 |
Depreciation and amortization under capital leases | 20,300 | 24,600 | $ 25,100 |
Ocean Bottom Services [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Transfer of inventory to property, plant and equipment | 17,700 | ||
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment | 17,424 | 24,181 | |
Machinery and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment | 157,618 | 152,358 | |
Seismic rental equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment | 1,557 | 1,904 | |
Furniture and fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment | 3,905 | 4,334 | |
Other [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant, equipment and seismic rental equipment | $ 30,049 | $ 31,821 |
Details of Selected Balance Sheet Accounts - Intangible Assets (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Summary of intangible assets, net | |||
Gross Amount | $ 36,934 | $ 37,469 | |
Accumulated Amortization | (33,831) | (32,659) | |
Net | 3,103 | 4,810 | |
Amortization expenses | 1,700 | 1,900 | $ 2,500 |
Customer relationships [Member] | |||
Summary of intangible assets, net | |||
Gross Amount | 36,934 | 37,469 | |
Accumulated Amortization | (33,831) | (32,659) | |
Net | $ 3,103 | $ 4,810 |
Details of Selected Balance Sheet Accounts - Intangible Assets (Details 1) $ in Thousands |
Dec. 31, 2016
USD ($)
|
---|---|
Estimated future amortization expense | |
2017 | $ 1,436 |
2018 | 1,169 |
2019 | $ 498 |
Details of Selected Balance Sheet Accounts - Accrued Expenses (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Summary of accrued expenses | ||
Compensation, including compensation-related taxes and commissions | $ 14,935 | $ 19,126 |
Accrued multi-client data library acquisition costs | 567 | 1,600 |
Income tax payable | 1,306 | 0 |
Other | 9,432 | 13,561 |
Total accrued expenses | $ 26,240 | $ 34,287 |
Details of Selected Balance Sheet Accounts - Other Long-term Liabilities (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
---|---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Accrual for loss contingency related to legal proceedings (Note 17) | $ 0 | $ 22,000 | $ 123,800 |
Deferred lease liabilities | 13,955 | 13,394 | |
Facility restructuring accrual | 1,765 | 3,006 | |
Deferred income tax liability | 3,679 | 4,734 | |
Other | 1,128 | 1,231 | |
Other long-term liabilities | $ 20,527 | $ 44,365 |
Goodwill (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Goodwill [Line Items] | |||
Accrual for loss contingency related to legal proceedings | $ 0 | $ 22,000 | $ 123,800 |
Changes in the carrying amount of goodwill | |||
Goodwill, balance beginning | 26,274 | 27,388 | |
Impact of foreign currency translation adjustments | (4,066) | (1,114) | |
Goodwill, balance ending | 22,208 | 26,274 | 27,388 |
E & P Technology & Services [Member] | |||
Changes in the carrying amount of goodwill | |||
Goodwill, balance beginning | 2,943 | 2,943 | |
Impact of foreign currency translation adjustments | 0 | 0 | |
Goodwill, balance ending | 2,943 | 2,943 | 2,943 |
E & P Technology & Services [Member] | Customer relationships [Member] | |||
Changes in the carrying amount of goodwill | |||
Impairment of goodwill | 1,400 | ||
Optimization Software and Services [Member] | |||
Changes in the carrying amount of goodwill | |||
Goodwill, balance beginning | 23,331 | 24,445 | |
Impact of foreign currency translation adjustments | (4,066) | (1,114) | |
Goodwill, balance ending | $ 19,265 | $ 23,331 | 24,445 |
Devices [Member] | |||
Changes in the carrying amount of goodwill | |||
Impairment of goodwill | $ 21,900 |
Stockholders' Equity and Stock-Based Compensation (Details) - $ / shares |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2012 |
|
Option Price per Share | ||||
Outstanding, minimum (usd per share) | $ 3.10 | $ 34.20 | $ 37.05 | $ 42.45 |
Outstanding, maximum (usd per share) | 245.85 | 245.85 | 245.85 | $ 245.85 |
Granted, minimum (usd per share) | 34.10 | 34.20 | 37.05 | |
Granted, maximum (usd per share) | 34.10 | 34.20 | 62.55 | |
Exercised, minimum (usd per share) | 45.00 | |||
Exercised, maximum (usd per share) | 45.00 | |||
Cancelled/forfeited, minimum (usd per share) | 3.10 | 37.05 | 45.00 | |
Cancelled/forfeited, maximum (usd per share) | $ 245.85 | $ 231.45 | $ 231.45 | |
Outstanding | ||||
Beginning balance (in shares) | 560,797 | 599,069 | 550,567 | |
Granted (in shares) | 415,000 | 53,328 | 115,760 | |
Exercised (in shares) | 0 | 0 | (1,900) | |
Cancelled/forfeited (in shares) | (128,162) | (91,600) | (65,358) | |
Ending balance (in shares) | 847,635 | 560,797 | 599,069 | |
Vested | ||||
Vested, beginning balance (in shares) | 384,305 | 358,390 | 305,698 | |
Vested (in shares) | 67,480 | 79,779 | 92,750 | |
Exercised (in shares) | 0 | 0 | (1,900) | |
Cancelled/forfeited (in shares) | (103,432) | (53,864) | (38,158) | |
Vested, ending balance (in shares) | 348,353 | 384,305 | 358,390 | |
Available for Grant | ||||
Beginning balance (in shares) | 97,003 | 183,468 | 334,762 | |
Increase in shares authorized (in shares) | 1,150,940 | |||
Granted (in shares) | 415,000 | 53,328 | 115,760 | |
Plan Expiration (in shares) | (4,452) | |||
Cancelled/forfeited (in shares) | 18,895 | 12,358 | 14,453 | |
Restricted stock granted out of option plans (in shares) | (259,300) | (45,652) | (48,503) | |
Restricted stock forfeited or cancelled for employee minimum income taxes and returned to the plans (in shares) | 7,182 | 157 | 2,968 | |
Ending balance (in shares) | 599,720 | 97,003 | 183,468 |
Stockholders' Equity and Stock-Based Compensation (Details 1) - $ / shares |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2012 |
|
Summary of stock options outstanding | ||||
Option Price per Share, minimum (usd per share) | $ 3.10 | $ 34.20 | $ 37.05 | $ 42.45 |
Option Price per Share, maximum (usd per share) | $ 245.85 | $ 245.85 | $ 245.85 | $ 245.85 |
Outstanding (in shares) | 847,635 | |||
Weighted Average Exercise Price of Outstanding Options (usd per share) | $ 46.21 | |||
Weighted Average Remaining Contract Life (in years) | 6 years 1 month 6 days | |||
Vested (in shares) | 348,353 | |||
Weighted Average Exercise Price of Vested Options (usd per share) | $ 95.48 | |||
$2.47 - $4.58 [Member] | ||||
Summary of stock options outstanding | ||||
Option Price per Share, minimum (usd per share) | 3.10 | |||
Option Price per Share, maximum (usd per share) | $ 57.90 | |||
Outstanding (in shares) | 557,438 | |||
Weighted Average Exercise Price of Outstanding Options (usd per share) | $ 15.00 | |||
Weighted Average Remaining Contract Life (in years) | 6 years 10 months 24 days | |||
Vested (in shares) | 94,050 | |||
Weighted Average Exercise Price of Vested Options (usd per share) | $ 50.09 | |||
$4.79 - $7.19 [Member] | ||||
Summary of stock options outstanding | ||||
Option Price per Share, minimum (usd per share) | 61.05 | |||
Option Price per Share, maximum (usd per share) | $ 71.85 | |||
Outstanding (in shares) | 79,230 | |||
Weighted Average Exercise Price of Outstanding Options (usd per share) | $ 62.12 | |||
Weighted Average Remaining Contract Life (in years) | 6 years 8 months 12 days | |||
Vested (in shares) | 45,154 | |||
Weighted Average Exercise Price of Vested Options (usd per share) | $ 62.88 | |||
$7.31 - $13.29 [Member] | ||||
Summary of stock options outstanding | ||||
Option Price per Share, minimum (usd per share) | 81.60 | |||
Option Price per Share, maximum (usd per share) | $ 99.60 | |||
Outstanding (in shares) | 119,296 | |||
Weighted Average Exercise Price of Outstanding Options (usd per share) | $ 88.73 | |||
Weighted Average Remaining Contract Life (in years) | 5 years 6 months | |||
Vested (in shares) | 117,478 | |||
Weighted Average Exercise Price of Vested Options (usd per share) | $ 88.61 | |||
$14.03 - $16.39 [Member] | ||||
Summary of stock options outstanding | ||||
Option Price per Share, minimum (usd per share) | 106.05 | |||
Option Price per Share, maximum (usd per share) | $ 245.85 | |||
Outstanding (in shares) | 91,671 | |||
Weighted Average Exercise Price of Outstanding Options (usd per share) | $ 166.89 | |||
Weighted Average Remaining Contract Life (in years) | 3 years 1 month 6 days | |||
Vested (in shares) | 91,671 | |||
Weighted Average Exercise Price of Vested Options (usd per share) | $ 166.89 |
Stockholders' Equity and Stock-Based Compensation (Details 2) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Number of Shares | |||
Beginning balance (in shares) | 560,797 | 599,069 | 550,567 |
Options granted (in shares) | 415,000 | ||
Options exercised (in shares) | 0 | 0 | (1,900) |
Options cancelled (in shares) | (24,730) | ||
Options forfeited (in shares) | (103,432) | ||
Ending balance (in shares) | 847,635 | 560,797 | 599,069 |
Options exercisable and vested (in shares) | 348,353 | ||
Weighted Average Exercise Price | |||
Beginning balance (usd per share) | $ 89.74 | ||
Options granted (usd per share) | 3.10 | ||
Options exercised (usd per share) | 0.00 | ||
Options cancelled (usd per share) | 37.68 | ||
Options forfeited (usd per share) | 111.34 | ||
Ending balance (usd per share) | 46.21 | $ 89.74 | |
Options exercisable and vested (usd per share) | 95.48 | ||
Additional Disclosures | |||
Weighted Average Grant Date Fair Value (usd per share) | $ 2.04 | $ 16.65 | $ 36.15 |
Weighted Average Remaining Contractual Life, Beginning balance | 6 years 1 month 6 days | 6 years | |
Weighted Average Remaining Contractual Life, Ending balance | 6 years 1 month 6 days | 6 years | |
Weighted Average Remaining Contractual Life, Options exercisable and vested | 5 years 9 months 18 days | ||
Aggregate Intrinsic Value, Ending balance | $ 1,175 | ||
Aggregate Intrinsic Value, Options exercisable and vested | $ 0 |
Stockholders' Equity and Stock-Based Compensation (Details 3) - Restricted stock and restricted stock unit [Member] |
12 Months Ended |
---|---|
Dec. 31, 2016
shares
| |
Status of the Company's restricted stock and restricted stock unit awards | |
Total nonvested, Beginning balance (in shares) | 73,627 |
Granted (in shares) | 259,300 |
Vested (in shares) | (40,421) |
Forfeited (in shares) | (7,198) |
Total nonvested, Ending balance (in shares) | 285,308 |
Stockholders' Equity and Stock-Based Compensation (Details 4) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rates | 1.81% | ||
Risk-free interest rates, minimum | 1.60% | ||
Risk-free interest rates, maximum | 1.70% | ||
Expected lives (in years) | 4 years | ||
Expected dividend yield | 0.00% | ||
Expected volatility | 70.99% | ||
Expected volatility, minimum | 65.90% | ||
Expected volatility, maximum | 70.50% | ||
Stock options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rates | 1.30% | 1.38% | |
Expected lives (in years) | 5 years 6 months | 4 years 6 months | 5 years 6 months |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 78.76% | 59.32% | |
Stock appreciation rights (SARs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rates | 2.19% | ||
Expected lives (in years) | 3 years 3 months 18 days | ||
Expected dividend yield | 0.00% | ||
Expected volatility | 69.38% |
Stockholders' Equity and Stock-Based Compensation (Details 5) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Stock-based compensation expense | $ 3,267 | $ 5,486 | $ 8,707 |
Tax benefit related thereto | (1,168) | (1,826) | (2,908) |
Stock-based compensation expense, net of tax | $ 2,099 | $ 3,660 | $ 5,799 |
Stockholders' Equity and Stock Based Compensation (Details Textual) |
12 Months Ended | 14 Months Ended | 69 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 01, 2016
individual
$ / shares
shares
|
Feb. 04, 2016 |
Mar. 01, 2015
individual
$ / shares
shares
|
Dec. 31, 2016
USD ($)
Person
$ / shares
shares
|
Dec. 31, 2015
USD ($)
$ / shares
shares
|
Dec. 31, 2014
USD ($)
$ / shares
shares
|
Dec. 31, 2016
USD ($)
Person
$ / shares
shares
|
Feb. 29, 2016
USD ($)
shares
|
Dec. 22, 2016
shares
|
Feb. 05, 2016
$ / shares
|
Feb. 01, 2016
shares
|
Jan. 31, 2016
shares
|
Nov. 04, 2015
USD ($)
|
Dec. 31, 2013
shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Shares outstanding options under the stock option plans (in shares) | 847,635 | 560,797 | 599,069 | 847,635 | 550,567 | |||||||||
Shares available for future grant and issuance | 599,720 | 97,003 | 183,468 | 599,720 | 334,762 | |||||||||
Maximum number of shares available for sale through ATM Program | 20,000,000 | |||||||||||||
Stock repurchase amount, authorized amount | $ | $ 25,000,000 | $ 25,000,000 | $ 25,000,000 | |||||||||||
Shares repurchased, value | $ | $ 964,000 | $ 1,989,000 | $ 3,000,000 | |||||||||||
Number of shares repurchased | 451,792 | |||||||||||||
Repurchased shares, average price per share (usd per share) | $ / shares | $ 6.41 | |||||||||||||
Reverse stock split ratio of one share | 0.066667 | |||||||||||||
Common stock, shares authorized | 26,666,667 | 26,666,667 | 26,666,667 | 26,666,667 | 13,300,000 | |||||||||
Common stock, par value (usd per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | $ 0.01 | ||||||||||
Common stock, closing sale price (usd per share) | $ / shares | $ 6.21 | |||||||||||||
Total intrinsic value of options exercised | $ | $ 100,000 | $ 100,000 | $ 100,000 | |||||||||||
Cash received from option exercises | $ | $ 0 | $ 0 | $ 100,000 | |||||||||||
Weighted average grant date fair value for stock option awards (usd per share) | $ / shares | $ 2.04 | $ 16.65 | $ 36.15 | |||||||||||
Purchase price of common stock, percentage of price | 85.00% | |||||||||||||
Term of common stock used in determining market-based implied volatility | 6 months | |||||||||||||
Prior To Reverse Stock Split [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Common stock, shares authorized | 400,000,000 | 200,000,000 | ||||||||||||
Stock options [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Stock options, award vesting period in years | 4 years | |||||||||||||
Stock options, term in years | 10 years | |||||||||||||
Restricted stock and restricted stock unit [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Stock options, award vesting period in years | 3 years | |||||||||||||
Intrinsic value of restricted stock and restricted stock unit awards | $ | $ 1,700,000 | $ 1,700,000 | ||||||||||||
Weighted average grant date fair value for restricted stock and restricted stock unit awards | $ / shares | $ 3.81 | $ 34.20 | $ 59.70 | |||||||||||
Total fair value of shares vested | $ | $ 200,000 | $ 600,000 | $ 2,100,000 | |||||||||||
Employee stock [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Minimum payroll deductions at base compensation under employee stock purchase plan | 1.00% | |||||||||||||
Maximum payroll deductions at base compensation under employee stock purchase plan | 10.00% | |||||||||||||
Maximum purchase limit of shares for each participant per offering period | 33 | |||||||||||||
Maximum purchase limit of shares for each participant annually | 66 | |||||||||||||
Maximum purchase limit of shares on the basis of fair market value on offering date, for each participant in any calendar year | $ | $ 10,000 | |||||||||||||
Purchase price of the common stock | lesser of 85% of the closing price on the first day of the applicable offering period (or most recently preceding trading day) or 85% of the closing price on the last day of the offering period | |||||||||||||
Offering period | 6 months | |||||||||||||
Company recorded compensation expense approximately | $ | 100,000 | 200,000 | ||||||||||||
Stock appreciation rights (SARs) [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Stock options, award vesting period in years | 4 years | 4 years | ||||||||||||
Company recorded compensation expense approximately | $ | $ 100,000 | $ 100,000 | $ 100,000 | |||||||||||
Percentage of fair market value of shares for calculation of exercise price SAR | not to be less than one hundred percent | |||||||||||||
Maximum term of SAR | 10 years | |||||||||||||
Number of awards issued during period | 1,210,000 | 207,207 | ||||||||||||
Number of individuals that received SARs | individual | 15 | 16 | ||||||||||||
Exercise price of awards issued during period | $ / shares | $ 3.1 | $ 34.20 | ||||||||||||
Number of days volume-weighted average price of stock measured for vesting | 20 days | |||||||||||||
Percentage of shares allowed to be exercised annually, if vested | 33.33% | 33.33% | ||||||||||||
Number of vested and outstanding stock appreciation rights | 9,333 | 9,333 | ||||||||||||
Number of individuals holding stock appreciation rights awards | Person | 1 | 1 | ||||||||||||
Weighted average exercise price of stock appreciation rights awards | $ / shares | $ 45.00 | $ 45.00 | ||||||||||||
Stock appreciation rights (SARs) [Member] | First one-third of awards | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Annual vesting percentage | 33.33% | 33.33% | ||||||||||||
Percentage that weighted average price of common stock must be greater than exercise price of SARs | 120.00% | 120.00% | ||||||||||||
Stock appreciation rights (SARs) [Member] | Share-based Compensation Award, Tranche Two [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Annual vesting percentage | 33.33% | 33.33% | ||||||||||||
Percentage that weighted average price of common stock must be greater than exercise price of SARs | 125.00% | 125.00% | ||||||||||||
Stock appreciation rights (SARs) [Member] | Share-based Compensation Award, Tranche Three [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Annual vesting percentage | 33.33% | 33.33% | ||||||||||||
Percentage that weighted average price of common stock must be greater than exercise price of SARs | 130.00% | 130.00% |
Supplemental Cash Flow Information and Non-cash Activity (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Segment Reporting Information [Line Items] | |||
Transfer of inventory to property, plant and equipment | $ 17,662 | $ 15,936 | $ 10,149 |
Purchase of property, plant, equipment and seismic rental equipment | 1,488 | 19,241 | 8,264 |
Supplemental disclosure of cash flow information is as follows: | |||
Interest | 15,691 | 15,441 | 16,582 |
Income taxes | 4,474 | 8,163 | 16,124 |
Non-cash items from investing and financing activities is as follows: | |||
Purchase of computer equipment financed through capital leases | 0 | 1,178 | 12,153 |
Leasehold improvement paid by landlord | 955 | 0 | 0 |
Conversion of the Company's investment in a convertible note to equity | $ 0 | $ 0 | $ 3,151 |
Issuance of stock in bond exchange | 10741 | 0 | 0 |
Investment in multi-client data library financed through trade payables | $ 0 | $ 8,939 | $ 0 |
Purchases of property, plant, and equipment and seismic rental equipment financed through accounts payable | 0 | 0 | $ 472 |
Ocean Bottom Services [Member] | |||
Segment Reporting Information [Line Items] | |||
Transfer of inventory to property, plant and equipment | $ 17,700 | ||
Purchase of property, plant, equipment and seismic rental equipment | $ 15,300 |
Operating Leases (Details Textual) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Leases, Operating [Abstract] | |||
Operating leases, rent expense | $ 11.3 | $ 11.8 | $ 12.9 |
Operating Leases (Details) $ in Thousands |
Dec. 31, 2016
USD ($)
|
---|---|
Future rental commitments over the next five years under non-cancelable operating leases | |
2017 | $ 10,947 |
2018 | 9,676 |
2019 | 9,656 |
2020 | 9,832 |
2021 | 10,017 |
Total | $ 50,128 |
Acquisition of OceanGeo - Narrative (Details) - OceanGeo [Member] - USD ($) |
Jul. 31, 2014 |
Jan. 31, 2014 |
Dec. 31, 2013 |
Oct. 31, 2013 |
---|---|---|---|---|
Business Acquisition [Line Items] | ||||
Increase in ownership percentage | 30.00% | 40.00% | 30.00% | |
Percentage of ownership interest | 100.00% | 70.00% | ||
Maximum advance capacity | $ 25,000,000.0 | |||
Working capital loan to investee | $ 18,900,000 |
Acquisition of OceanGeo - Pro Forma Income Statement Information (Details) $ / shares in Units, $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2014
USD ($)
$ / shares
| |
Business Combinations [Abstract] | |
Net revenues | $ 518,742 |
Loss from operations | (114,346) |
Net loss | (126,492) |
Net loss attributable to ION | $ (127,226) |
Basic and diluted net loss per common share (usd per share) | $ / shares | $ (11.70) |
Equity Method Investments - Narrative (Details) - INOVA Geophysical [Member] |
12 Months Ended | |
---|---|---|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2016
USD ($)
Member
|
|
Schedule of Equity Method Investments [Line Items] | ||
Percentage of equity method investment | 49.00% | |
Ownership percentage by parent | 51.00% | |
Number of members appointed by related party | Member | 4 | |
Number of members appointed by Company | Member | 3 | |
Write-down of note receivable from OceanGeo | $ 30,700,000 | |
Equity method investment, Accumulated other comprehensive loss | $ 0 | |
Equity method investments | $ 0 |
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Carrying value of long-term debt and lease obligations | $ 163.9 | $ 186.3 |
Fair value of long-term debt | $ 114.8 | $ 107.6 |
Benefit Plans (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Compensation and Retirement Disclosure [Abstract] | |||
Maximum contribution by employees as a percentage of their compensation to defined benefit plan | up to 60% of their compensation | ||
Maximum percentage of employee contributions | 60.00% | ||
Percentage of contribution made to defined benefit plan | 50.00% | ||
Component percent of first compensation contributed to defined benefit plan | 6.00% | ||
Company contributions to benefit plans | $ 0.8 | $ 1.4 | $ 1.8 |
Selected Quarterly Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Summary of selected quarterly information | |||||||||||
Service revenues | $ 26,140 | $ 65,914 | $ 25,430 | $ 13,156 | $ 63,562 | $ 53,515 | $ 23,323 | $ 20,080 | $ 130,640 | $ 160,480 | $ 384,938 |
Product revenues | 9,229 | 12,708 | 10,722 | 9,509 | 13,904 | 13,159 | 13,472 | 20,498 | 42,168 | 61,033 | 124,620 |
Total net revenues | 35,369 | 78,622 | 36,152 | 22,665 | 77,466 | 66,674 | 36,795 | 40,578 | 172,808 | 221,513 | 509,558 |
Gross profit (loss) | 8,344 | 31,765 | 4,853 | (8,930) | 22,818 | 11,108 | (10,135) | (15,788) | 36,032 | 8,003 | 62,223 |
Income (loss) from operations | (8,318) | 11,864 | (16,588) | (30,129) | (380) | (12,874) | (40,689) | (46,689) | (43,171) | (100,632) | (117,929) |
Interest expense, net | (4,442) | (4,607) | (4,702) | (4,734) | (4,667) | (4,854) | (4,607) | (4,625) | (18,485) | (18,753) | (19,382) |
Other income (expense) | 4,974 | (2,027) | (1,717) | 120 | 240 | (346) | 101,600 | (3,219) | 1,350 | 98,275 | 79,860 |
Income tax expense | (1,444) | 3,316 | 2,256 | 293 | 447 | 2,082 | 532 | 983 | 4,421 | 4,044 | 20,582 |
Net (income) loss attributable to noncontrolling interests | (149) | (215) | (79) | 22 | (290) | (227) | 297 | 252 | (421) | 32 | (734) |
Net income (loss) attributable to ION | $ (6,491) | $ 1,699 | $ (25,342) | $ (35,014) | $ (5,544) | $ (20,383) | $ 56,069 | $ (55,264) | $ (65,148) | $ (25,122) | $ (128,252) |
Net loss per share: | |||||||||||
Basic (usd per share) | $ (0.55) | $ 0.14 | $ (2.22) | $ (3.30) | $ (0.51) | $ (1.86) | $ 5.11 | $ (5.04) | $ (5.71) | $ (2.29) | $ (11.72) |
Diluted (usd per share) | $ (0.55) | $ 0.14 | $ (2.22) | $ (3.30) | $ (0.51) | $ (1.86) | $ 5.11 | $ (5.04) | $ (5.71) | $ (2.29) | $ (11.72) |
Certain Relationships and Related Party Transactions (Details Textual) - USD ($) |
12 Months Ended | 36 Months Ended | ||||
---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
Dec. 31, 2016 |
Jul. 31, 2013 |
|
Related Party Transaction [Line Items] | ||||||
Recovery of INOVA bad debts | $ 3,983,000 | $ 0 | $ 0 | |||
INOVA Geophysical [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Basis spread on variable rate | 6.50% | |||||
Interest rate effective on notes receivable due from related party | 15.00% | |||||
Majority Shareholder [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Related party transaction, revenues from transactions with related party | 3,600,000 | 6,300,000 | $ 6,500,000 | |||
Receivables due from BGP | $ 400,000 | 300,000 | $ 400,000 | |||
Company's outstanding common stock owned by related parties | 13.10% | 13.10% | ||||
Board of Directors Chairman [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Company's outstanding common stock owned by related parties | 8.10% | 8.10% | ||||
Payments for continued services agreement (less than for 2016 and 2015) | $ 100,000 | $ 100,000 | ||||
Board of Directors Chairman [Member] | Manufacturing Facility [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Payments for continued services agreement (less than for 2016 and 2015) | 100,000 | |||||
Board of Directors Chairman [Member] | Other services [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Payments for continued services agreement (less than for 2016 and 2015) | 100,000 | |||||
Board of Directors Chairman [Member] | Rent and other pass through third party facilities charges [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Payments for continued services agreement (less than for 2016 and 2015) | 2,400,000 | |||||
INOVA Geophysical [Member] | ||||||
Related Party Transaction [Line Items] | ||||||
Receivables due from BGP | $ 4,000,000 | $ 4,000,000 | ||||
Maximum amount agreed to be loaned to INOVA | $ 10,000,000 | |||||
Advances made to related party | $ 10,000,000 | |||||
Proceeds from related party debt | $ 6,000,000 | |||||
Notes receivable due from related parties | $ 0 |
Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
---|---|---|---|---|
Current assets: | ||||
Cash and cash equivalents | $ 52,652 | $ 84,933 | $ 173,608 | $ 148,056 |
Accounts receivable, net | 20,770 | 44,365 | ||
Unbilled receivables | 13,415 | 19,937 | ||
Inventories | 15,241 | 32,721 | ||
Prepaid expenses and other current assets | 9,559 | 14,807 | ||
Total current assets | 111,637 | 196,763 | ||
Property, plant, equipment and seismic rental equipment, net | 67,488 | 72,027 | ||
Multi-client data library, net | 105,935 | 132,237 | ||
Investment in subsidiaries | 0 | 0 | ||
Goodwill | 22,208 | 26,274 | 27,388 | |
Intangible assets, net | 3,103 | 4,810 | ||
Intercompany receivables | 0 | 0 | ||
Other assets | 2,845 | 2,977 | ||
Total assets | 313,216 | 435,088 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 14,581 | 7,912 | ||
Accounts payable | 26,889 | 29,799 | ||
Accrued expenses | 26,240 | 34,287 | ||
Accrued multi-client data library royalties | 23,663 | 25,045 | ||
Deferred revenue | 3,709 | 6,560 | ||
Total current liabilities | 95,082 | 103,603 | ||
Long-term debt, net of current maturities | 144,209 | 175,080 | ||
Intercompany payables | 0 | 0 | ||
Other long-term liabilities | 20,527 | 44,365 | ||
Total liabilities | 259,818 | 323,048 | ||
Equity: | ||||
Common stock | 118 | 107 | ||
Additional paid-in capital | 899,198 | 894,715 | ||
Accumulated earnings (deficit) | (824,679) | (759,531) | ||
Accumulated other comprehensive income (loss) | (21,748) | (14,781) | ||
Due from ION Geophysical Corporation | 0 | 0 | ||
Treasury stock | 0 | (8,551) | ||
Total stockholders’ equity | 52,889 | 111,959 | ||
Noncontrolling interests | 509 | 81 | ||
Total equity | 53,398 | 112,040 | 135,712 | 257,885 |
Total liabilities and equity | 313,216 | 435,088 | ||
Reportable Legal Entities [Member] | ION Geophysical Corporation [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 23,042 | 33,734 | 109,514 | 124,701 |
Accounts receivable, net | 0 | 0 | ||
Unbilled receivables | 0 | 0 | ||
Inventories | 0 | 0 | ||
Prepaid expenses and other current assets | 3,387 | 5,435 | ||
Total current assets | 26,429 | 39,169 | ||
Property, plant, equipment and seismic rental equipment, net | 1,745 | 4,521 | ||
Multi-client data library, net | 0 | 0 | ||
Investment in subsidiaries | 660,880 | 680,508 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Intercompany receivables | 0 | 75,641 | ||
Other assets | 2,469 | 1,724 | ||
Total assets | 691,523 | 801,563 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 11,281 | 486 | ||
Accounts payable | 2,101 | 2,086 | ||
Accrued expenses | 8,579 | 11,199 | ||
Accrued multi-client data library royalties | 0 | 0 | ||
Deferred revenue | 0 | 0 | ||
Total current liabilities | 21,961 | 13,771 | ||
Long-term debt, net of current maturities | 143,930 | 171,672 | ||
Intercompany payables | 472,276 | 503,621 | ||
Other long-term liabilities | 467 | 540 | ||
Total liabilities | 638,634 | 689,604 | ||
Equity: | ||||
Common stock | 118 | 107 | ||
Additional paid-in capital | 899,198 | 894,715 | ||
Accumulated earnings (deficit) | (824,679) | (759,531) | ||
Accumulated other comprehensive income (loss) | (21,748) | (14,781) | ||
Due from ION Geophysical Corporation | 0 | 0 | ||
Treasury stock | (8,551) | |||
Total stockholders’ equity | 52,889 | 111,959 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 52,889 | 111,959 | ||
Total liabilities and equity | 691,523 | 801,563 | ||
Reportable Legal Entities [Member] | The Guarantors [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Accounts receivable, net | 12,775 | 35,133 | ||
Unbilled receivables | 5,275 | 19,046 | ||
Inventories | 8,610 | 10,939 | ||
Prepaid expenses and other current assets | 4,624 | 1,458 | ||
Total current assets | 31,284 | 66,576 | ||
Property, plant, equipment and seismic rental equipment, net | 12,369 | 21,072 | ||
Multi-client data library, net | 97,369 | 120,550 | ||
Investment in subsidiaries | 257,732 | 243,319 | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 3,008 | 4,523 | ||
Intercompany receivables | 0 | 0 | ||
Other assets | 145 | 146 | ||
Total assets | 401,907 | 456,186 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 3,166 | 6,856 | ||
Accounts payable | 19,720 | 19,839 | ||
Accrued expenses | 10,016 | 16,200 | ||
Accrued multi-client data library royalties | 23,663 | 25,045 | ||
Deferred revenue | 2,667 | 5,071 | ||
Total current liabilities | 59,232 | 73,011 | ||
Long-term debt, net of current maturities | 279 | 3,408 | ||
Intercompany payables | 10,155 | 68,286 | ||
Other long-term liabilities | 12,117 | 33,305 | ||
Total liabilities | 81,783 | 178,010 | ||
Equity: | ||||
Common stock | 290,460 | 290,460 | ||
Additional paid-in capital | 180,700 | 180,700 | ||
Accumulated earnings (deficit) | 216,730 | 231,208 | ||
Accumulated other comprehensive income (loss) | 4,420 | 4,420 | ||
Due from ION Geophysical Corporation | (372,186) | (428,612) | ||
Treasury stock | 0 | |||
Total stockholders’ equity | 320,124 | 278,176 | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | 320,124 | 278,176 | ||
Total liabilities and equity | 401,907 | 456,186 | ||
Reportable Legal Entities [Member] | All Other Subsidiaries [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 29,610 | 51,199 | $ 64,094 | $ 23,355 |
Accounts receivable, net | 7,995 | 9,232 | ||
Unbilled receivables | 8,140 | 891 | ||
Inventories | 6,631 | 21,782 | ||
Prepaid expenses and other current assets | 1,548 | 7,914 | ||
Total current assets | 53,924 | 91,018 | ||
Property, plant, equipment and seismic rental equipment, net | 53,374 | 46,434 | ||
Multi-client data library, net | 8,566 | 11,687 | ||
Investment in subsidiaries | 0 | 0 | ||
Goodwill | 22,208 | 26,274 | ||
Intangible assets, net | 95 | 287 | ||
Intercompany receivables | 32,174 | 0 | ||
Other assets | 231 | 1,107 | ||
Total assets | 170,572 | 176,807 | ||
Current liabilities: | ||||
Current maturities of long-term debt | 134 | 570 | ||
Accounts payable | 5,068 | 7,874 | ||
Accrued expenses | 7,645 | 6,888 | ||
Accrued multi-client data library royalties | 0 | 0 | ||
Deferred revenue | 1,042 | 1,489 | ||
Total current liabilities | 13,889 | 16,821 | ||
Long-term debt, net of current maturities | 0 | 0 | ||
Intercompany payables | 0 | 7,355 | ||
Other long-term liabilities | 7,943 | 10,520 | ||
Total liabilities | 21,832 | 34,696 | ||
Equity: | ||||
Common stock | 19,138 | 19,138 | ||
Additional paid-in capital | 232,590 | 234,234 | ||
Accumulated earnings (deficit) | (3,639) | (21,729) | ||
Accumulated other comprehensive income (loss) | (21,787) | (14,604) | ||
Due from ION Geophysical Corporation | (78,071) | (75,009) | ||
Treasury stock | 0 | |||
Total stockholders’ equity | 148,231 | 142,030 | ||
Noncontrolling interests | 509 | 81 | ||
Total equity | 148,740 | 142,111 | ||
Total liabilities and equity | 170,572 | 176,807 | ||
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 | 0 | 0 | ||
Total current assets | 0 | 0 | ||
Property, plant, equipment and seismic rental equipment, net | 0 | 0 | ||
Multi-client data library, net | 0 | 0 | ||
Investment in subsidiaries | (918,612) | (923,827) | ||
Goodwill | 0 | 0 | ||
Intangible assets, net | 0 | 0 | ||
Intercompany receivables | (32,174) | (75,641) | ||
Other assets | 0 | 0 | ||
Total assets | (950,786) | (999,468) | ||
Current liabilities: | ||||
Current maturities of long-term debt | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued expenses | 0 | 0 | ||
Accrued multi-client data library royalties | 0 | 0 | ||
Deferred revenue | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
Long-term debt, net of current maturities | 0 | 0 | ||
Intercompany payables | (482,431) | (579,262) | ||
Other long-term liabilities | 0 | 0 | ||
Total liabilities | (482,431) | (579,262) | ||
Equity: | ||||
Common stock | (309,598) | (309,598) | ||
Additional paid-in capital | (413,290) | (414,934) | ||
Accumulated earnings (deficit) | (213,091) | (209,479) | ||
Accumulated other comprehensive income (loss) | 17,367 | 10,184 | ||
Due from ION Geophysical Corporation | 450,257 | 503,621 | ||
Treasury stock | 0 | |||
Total stockholders’ equity | (468,355) | (420,206) | ||
Noncontrolling interests | 0 | 0 | ||
Total equity | (468,355) | (420,206) | ||
Total liabilities and equity | $ (950,786) | $ (999,468) |
Condensed Consolidating Financial Information - Condensed Consolidating Income Statement (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net revenues | $ 35,369 | $ 78,622 | $ 36,152 | $ 22,665 | $ 77,466 | $ 66,674 | $ 36,795 | $ 40,578 | $ 172,808 | $ 221,513 | $ 509,558 |
Cost of goods sold | 136,776 | 213,510 | 447,335 | ||||||||
Gross profit | 8,344 | 31,765 | 4,853 | (8,930) | 22,818 | 11,108 | (10,135) | (15,788) | 36,032 | 8,003 | 62,223 |
Total operating expenses | 79,203 | 108,635 | 180,152 | ||||||||
Income (loss) from operations | (8,318) | 11,864 | (16,588) | (30,129) | (380) | (12,874) | (40,689) | (46,689) | (43,171) | (100,632) | (117,929) |
Interest expense, net | (4,442) | (4,607) | (4,702) | (4,734) | (4,667) | (4,854) | (4,607) | (4,625) | (18,485) | (18,753) | (19,382) |
Intercompany interest, net | 0 | 0 | 0 | ||||||||
Equity in earnings (losses) of investments | 0 | 0 | (49,485) | ||||||||
Other income (expense) | 4,974 | (2,027) | (1,717) | 120 | 240 | (346) | 101,600 | (3,219) | 1,350 | 98,275 | 79,860 |
Loss before income taxes | (60,306) | (21,110) | (106,936) | ||||||||
Income tax expense | (1,444) | 3,316 | 2,256 | 293 | 447 | 2,082 | 532 | 983 | 4,421 | 4,044 | 20,582 |
Net income (loss) | (64,727) | (25,154) | (127,518) | ||||||||
Net (income) loss attributable to noncontrolling interests | (149) | (215) | (79) | 22 | (290) | (227) | 297 | 252 | (421) | 32 | (734) |
Net loss attributable to ION | $ (6,491) | $ 1,699 | $ (25,342) | $ (35,014) | $ (5,544) | $ (20,383) | $ 56,069 | $ (55,264) | (65,148) | (25,122) | (128,252) |
Comprehensive net income (loss) | (71,694) | (27,128) | (129,187) | ||||||||
Comprehensive (income) loss attributable to noncontrolling interest | (421) | 32 | (734) | ||||||||
Comprehensive net loss attributable to ION | (72,115) | (27,096) | (129,921) | ||||||||
Reportable Legal Entities [Member] | ION Geophysical Corporation [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net revenues | 0 | 0 | 0 | ||||||||
Cost of goods sold | 0 | 0 | 0 | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Total operating expenses | 31,438 | 26,091 | 38,961 | ||||||||
Income (loss) from operations | (31,438) | (26,091) | (38,961) | ||||||||
Interest expense, net | (18,406) | (18,434) | (18,537) | ||||||||
Intercompany interest, net | 978 | 697 | (340) | ||||||||
Equity in earnings (losses) of investments | (19,756) | 16,604 | (74,615) | ||||||||
Other income (expense) | 3,528 | 192 | 4,536 | ||||||||
Loss before income taxes | (65,094) | (27,032) | (127,917) | ||||||||
Income tax expense | 54 | (1,910) | 335 | ||||||||
Net income (loss) | (65,148) | (25,122) | (128,252) | ||||||||
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net loss attributable to ION | (65,148) | (25,122) | (128,252) | ||||||||
Comprehensive net income (loss) | (72,331) | (27,096) | (129,921) | ||||||||
Comprehensive (income) loss attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Comprehensive net loss attributable to ION | (72,331) | (27,096) | (129,921) | ||||||||
Reportable Legal Entities [Member] | The Guarantors [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net revenues | 79,006 | 145,615 | 221,008 | ||||||||
Cost of goods sold | 84,373 | 126,176 | 262,829 | ||||||||
Gross profit | (5,367) | 19,439 | (41,821) | ||||||||
Total operating expenses | 27,274 | 47,579 | 88,481 | ||||||||
Income (loss) from operations | (32,641) | (28,140) | (130,302) | ||||||||
Interest expense, net | (173) | (351) | (245) | ||||||||
Intercompany interest, net | (4,397) | (3,140) | 2,146 | ||||||||
Equity in earnings (losses) of investments | 23,368 | (42,953) | 32,043 | ||||||||
Other income (expense) | 702 | 101,978 | 74,295 | ||||||||
Loss before income taxes | (13,141) | 27,394 | (22,063) | ||||||||
Income tax expense | 1,337 | 5,031 | 1,277 | ||||||||
Net income (loss) | (14,478) | 22,363 | (23,340) | ||||||||
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net loss attributable to ION | (14,478) | 22,363 | (23,340) | ||||||||
Comprehensive net income (loss) | (14,478) | 20,553 | (23,329) | ||||||||
Comprehensive (income) loss attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Comprehensive net loss attributable to ION | (14,478) | 20,553 | (23,329) | ||||||||
Reportable Legal Entities [Member] | All Other Subsidiaries [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net revenues | 93,802 | 76,954 | 291,302 | ||||||||
Cost of goods sold | 52,403 | 88,390 | 187,258 | ||||||||
Gross profit | 41,399 | (11,436) | 104,044 | ||||||||
Total operating expenses | 20,491 | 34,965 | 52,710 | ||||||||
Income (loss) from operations | 20,908 | (46,401) | 51,334 | ||||||||
Interest expense, net | 94 | 32 | (600) | ||||||||
Intercompany interest, net | 3,419 | 2,443 | (1,806) | ||||||||
Equity in earnings (losses) of investments | 0 | 0 | 738 | ||||||||
Other income (expense) | (2,880) | (3,895) | 1,029 | ||||||||
Loss before income taxes | 21,541 | (47,821) | 50,695 | ||||||||
Income tax expense | 3,030 | 923 | 18,970 | ||||||||
Net income (loss) | 18,511 | (48,744) | 31,725 | ||||||||
Net (income) loss attributable to noncontrolling interests | (421) | 32 | (734) | ||||||||
Net loss attributable to ION | 18,090 | (48,712) | 30,991 | ||||||||
Comprehensive net income (loss) | 10,907 | (50,551) | 30,850 | ||||||||
Comprehensive (income) loss attributable to noncontrolling interest | (421) | 32 | (734) | ||||||||
Comprehensive net loss attributable to ION | 10,486 | (50,519) | 30,116 | ||||||||
Consolidation, Eliminations [Member] | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net revenues | 0 | (1,056) | (2,752) | ||||||||
Cost of goods sold | 0 | (1,056) | (2,752) | ||||||||
Gross profit | 0 | 0 | 0 | ||||||||
Total operating expenses | 0 | 0 | 0 | ||||||||
Income (loss) from operations | 0 | 0 | 0 | ||||||||
Interest expense, net | 0 | 0 | 0 | ||||||||
Intercompany interest, net | 0 | 0 | 0 | ||||||||
Equity in earnings (losses) of investments | (3,612) | 26,349 | (7,651) | ||||||||
Other income (expense) | 0 | 0 | 0 | ||||||||
Loss before income taxes | (3,612) | 26,349 | (7,651) | ||||||||
Income tax expense | 0 | 0 | 0 | ||||||||
Net income (loss) | (3,612) | 26,349 | (7,651) | ||||||||
Net (income) loss attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net loss attributable to ION | (3,612) | 26,349 | (7,651) | ||||||||
Comprehensive net income (loss) | 4,208 | 29,966 | (6,787) | ||||||||
Comprehensive (income) loss attributable to noncontrolling interest | 0 | 0 | 0 | ||||||||
Comprehensive net loss attributable to ION | $ 4,208 | $ 29,966 | $ (6,787) |
Condensed Consolidating Financial Information - Condensed Consolidating Statement of Cash Flows (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Cash flows from operating activities: | |||
Net cash provided by (used in) operating activities | $ 1,571 | $ (16,524) | $ 129,780 |
Cash flows from investing activities: | |||
Investment in multi-client data library | (14,884) | (45,558) | (67,785) |
Purchase of property, plant, equipment and seismic rental equipment | (1,488) | (19,241) | (8,264) |
Repayment of advances by INOVA Geophysical | 0 | 0 | 1,000 |
Net investment in and advances to OceanGeo B.V. prior to its consolidation | 0 | 0 | (3,074) |
Proceeds from sale of cost method investments | 2,698 | 0 | 14,051 |
Net proceeds from sale of Source product line | 0 | 0 | 14,394 |
Other investing activities | 30 | 1,263 | 928 |
Net cash used in investing activities | (13,644) | (63,536) | (48,750) |
Cash flows from financing activities: | |||
Borrowings under revolving line of credit | 15,000 | 0 | 15,000 |
Repayments under revolving line of credit | (5,000) | 0 | (50,000) |
Payments on notes payable and long-term debt | (8,634) | (7,452) | (12,998) |
Cost associated with issuance of debt | (6,744) | (145) | (2,194) |
Repurchase of common stock | (964) | (1,989) | 0 |
Intercompany lending | 0 | 0 | 0 |
Payment of preferred dividends | (6,000) | ||
Payments to repurchase bonds | (15,000) | 0 | 0 |
Other financing activities | (252) | 73 | 218 |
Net cash provided by (used in) financing activities | (21,594) | (9,513) | (55,974) |
Effect of change in foreign currency exchange rates on cash and cash equivalents | 1,386 | 898 | 496 |
Net (decrease) increase in cash and cash equivalents | (32,281) | (88,675) | 25,552 |
Cash and cash equivalents at beginning of period | 84,933 | 173,608 | 148,056 |
Cash and cash equivalents at end of period | 52,652 | 84,933 | 173,608 |
Reportable Legal Entities [Member] | ION Geophysical Corporation [Member] | |||
Cash flows from operating activities: | |||
Net cash provided by (used in) operating activities | (30,154) | (425,310) | (53,925) |
Cash flows from investing activities: | |||
Investment in multi-client data library | 0 | 0 | 0 |
Purchase of property, plant, equipment and seismic rental equipment | (73) | (347) | (1,240) |
Repayment of advances by INOVA Geophysical | 1,000 | ||
Net investment in and advances to OceanGeo B.V. prior to its consolidation | 0 | ||
Proceeds from sale of cost method investments | 2,698 | 14,051 | |
Net proceeds from sale of Source product line | 0 | ||
Other investing activities | 0 | 0 | 579 |
Net cash used in investing activities | 2,625 | (347) | 14,390 |
Cash flows from financing activities: | |||
Borrowings under revolving line of credit | 15,000 | 15,000 | |
Repayments under revolving line of credit | (5,000) | (50,000) | |
Payments on notes payable and long-term debt | (2,070) | (153) | 0 |
Cost associated with issuance of debt | (6,744) | (145) | (2,194) |
Repurchase of common stock | (964) | (1,989) | |
Intercompany lending | 31,867 | 352,091 | 61,324 |
Payment of preferred dividends | 0 | ||
Payments to repurchase bonds | (15,000) | ||
Other financing activities | (252) | 73 | 218 |
Net cash provided by (used in) financing activities | 16,837 | 349,877 | 24,348 |
Effect of change in foreign currency exchange rates on cash and cash equivalents | 0 | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | (10,692) | (75,780) | (15,187) |
Cash and cash equivalents at beginning of period | 33,734 | 109,514 | 124,701 |
Cash and cash equivalents at end of period | 23,042 | 33,734 | 109,514 |
Reportable Legal Entities [Member] | The Guarantors [Member] | |||
Cash flows from operating activities: | |||
Net cash provided by (used in) operating activities | 52,385 | 225,581 | 107,590 |
Cash flows from investing activities: | |||
Investment in multi-client data library | (10,985) | (44,687) | (67,552) |
Purchase of property, plant, equipment and seismic rental equipment | (343) | (3,945) | (4,530) |
Repayment of advances by INOVA Geophysical | 0 | ||
Net investment in and advances to OceanGeo B.V. prior to its consolidation | 0 | ||
Proceeds from sale of cost method investments | 0 | 0 | |
Net proceeds from sale of Source product line | 9,881 | ||
Other investing activities | 30 | 1,263 | 26 |
Net cash used in investing activities | (11,298) | (47,369) | (62,175) |
Cash flows from financing activities: | |||
Borrowings under revolving line of credit | 0 | 0 | |
Repayments under revolving line of credit | 0 | 0 | |
Payments on notes payable and long-term debt | (6,316) | (6,467) | (5,384) |
Cost associated with issuance of debt | 0 | 0 | 0 |
Repurchase of common stock | 0 | 0 | |
Intercompany lending | (34,771) | (171,745) | (40,031) |
Payment of preferred dividends | 0 | ||
Payments to repurchase bonds | 0 | ||
Other financing activities | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | (41,087) | (178,212) | (45,415) |
Effect of change in foreign currency exchange rates on cash and cash equivalents | 0 | 0 | 0 |
Net (decrease) increase in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | 0 | 0 | 0 |
Reportable Legal Entities [Member] | All Other Subsidiaries [Member] | |||
Cash flows from operating activities: | |||
Net cash provided by (used in) operating activities | (20,660) | 183,205 | 76,115 |
Cash flows from investing activities: | |||
Investment in multi-client data library | (3,899) | (871) | (233) |
Purchase of property, plant, equipment and seismic rental equipment | (1,072) | (14,949) | (2,494) |
Repayment of advances by INOVA Geophysical | 0 | ||
Net investment in and advances to OceanGeo B.V. prior to its consolidation | (3,074) | ||
Proceeds from sale of cost method investments | 0 | 0 | |
Net proceeds from sale of Source product line | 4,513 | ||
Other investing activities | 0 | 0 | 323 |
Net cash used in investing activities | (4,971) | (15,820) | (965) |
Cash flows from financing activities: | |||
Borrowings under revolving line of credit | 0 | 0 | |
Repayments under revolving line of credit | 0 | 0 | |
Payments on notes payable and long-term debt | (248) | (832) | (7,614) |
Cost associated with issuance of debt | 0 | 0 | 0 |
Repurchase of common stock | 0 | 0 | |
Intercompany lending | 2,904 | (180,346) | (21,293) |
Payment of preferred dividends | (6,000) | ||
Payments to repurchase bonds | 0 | ||
Other financing activities | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | 2,656 | (181,178) | (34,907) |
Effect of change in foreign currency exchange rates on cash and cash equivalents | 1,386 | 898 | 496 |
Net (decrease) increase in cash and cash equivalents | (21,589) | (12,895) | 40,739 |
Cash and cash equivalents at beginning of period | 51,199 | 64,094 | 23,355 |
Cash and cash equivalents at end of period | 29,610 | 51,199 | $ 64,094 |
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 | $ 0 |
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Allowances for doubtful accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 4,919 | $ 7,633 | $ 7,222 |
Charged (Credited) to Costs and Expenses | 1,834 | 1,841 | 7,275 |
Deductions | (5,310) | (4,555) | (6,864) |
Balance at End of Year | 1,443 | 4,919 | 7,633 |
Allowances for doubtful notes receivable [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 4,000 | 4,000 | 0 |
Charged (Credited) to Costs and Expenses | 0 | 0 | 4,000 |
Deductions | 0 | 0 | 0 |
Balance at End of Year | 4,000 | 4,000 | 4,000 |
Warranty [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 124 | 399 | 643 |
Charged (Credited) to Costs and Expenses | 37 | 13 | 381 |
Deductions | (99) | (288) | (625) |
Balance at End of Year | 62 | 124 | 399 |
Valuation allowance on deferred tax assets [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 194,255 | 205,264 | 151,035 |
Charged (Credited) to Costs and Expenses | 23,334 | (11,009) | 54,229 |
Deductions | 0 | 0 | 0 |
Balance at End of Year | 217,589 | 194,255 | 205,264 |
Excess and obsolete inventory [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 24,475 | 29,804 | 32,555 |
Charged (Credited) to Costs and Expenses | 429 | 151 | 6,952 |
Deductions | (9,855) | (5,480) | (9,703) |
Balance at End of Year | $ 15,049 | $ 24,475 | $ 29,804 |
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