Segment and Geographic Information

12 Months Ended

Dec. 31, 2016

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:

• 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.

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):

	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	)

^(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.

	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

A summary of total assets by geographic area follows (in thousands):

	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

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):

	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

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.