Total restricted cash consists of short-term investments, primarily certificates of deposit, carried at cost. In the normal course of business, this amount is comprised of primarily cash collateral for letters of credit and performance guarantees. At June 30, 2012 and December 31, 2011, restricted cash also included cash held in trust of $0.9 million and $0.2 million, respectively, in connection with a short-term project financing agreement entered into in November 2011 by one of our subsidiaries in Latin America.

At June 30, 2012, restricted cash classified as non-current included $3.1 million remaining from the proceeds received in connection with the sale during the first quarter of 2012 of certain North American seismic data. See below under "—Multi-Client Data Library, Net." The proceeds from the sale are restricted for reinvestment in long-term assets pursuant to the Notes indenture and restrictions therein.

In order to improve the Company's liquidity, one of the Company's international subsidiaries in Latin America sells certain eligible trade accounts receivable under a program sponsored by a financial agent of the foreign government to accelerate collections. There is no recourse to the subsidiary for uncollectible receivables and, once sold, the subsidiary's effective control over the accounts is ceded. The cost associated with these sales is calculated based on LIBOR plus five percentage points and the value and due date of the accounts receivable sold.

At the time of sale, the related accounts receivable are removed from the balance sheet and the proceeds and cost are recorded. The Company received proceeds of $45.4 million and $25.8 million from sales of accounts receivable during the three months ended June 30, 2012 and 2011, respectively. The Company received proceeds of $77.4 million and $45.3 million from sales of accounts receivable during the six months ended June 30, 2012 and 2011, respectively. The loss on the sale of these accounts receivable during the three and six months ended June 30, 2012 was $0.1 million and $0.2 million, respectively, and is included in operating expenses in the Company's interim condensed consolidated statement of operations. The loss on the sale of these accounts receivable during the three and six months ended June 30, 2011 was $0.1 million and $0.2 million, respectively, and is included in operating expenses in the Company's interim condensed consolidated statement of operations.

Property, equipment and accumulated depreciation were as follows (in thousands):

		June 30, 2012			December 31, 2011

		(Unaudited)
Field operating equipment	3 - 10 years	$	318,882		$	318,530
Vehicles	3 - 10 years		72,485			76,849
Buildings and improvements	6 - 39 years		10,531			10,948
Software	3 - 5 years		25,974			25,554
Data processing equipment	3 - 5 years		9,692			9,765
Furniture and equipment	3 - 5 years		3,860			3,994

			441,424			445,640
Less: accumulated depreciation			(256,948	)		(235,281	)

			184,476			210,359
Assets under construction			2,242			2,277

		$	186,718		$	212,636

The Company reviews the useful life and residual values of property and equipment on an ongoing basis considering the effect of events or changes in circumstances. Depreciation expense related to the Company's property and equipment for the three and six months ended June 30, 2012 was $17.8 million and $35.6 million, respectively. Depreciation expense related to the Company's property and equipment for the three and six months ended June 30, 2011 was $18.5 million and $36.1 million, respectively.

On March 30, 2012, the Company entered into an Exchange Agreement pursuant to which the Company exchanged, in a reciprocal transfer, certain of its equipment in North America. The Company recorded a gain of $3.9 million related to this transaction, which is included in direct operating expenses in the Company's interim condensed consolidated statement of operations.

The Company stores and maintains property and equipment in the countries in which it does business. In connection with the acquisition of PGS Onshore in February 2010, the Company acquired certain property and equipment in Libya and entered into an agreement with PGS to operate the business there on the Company's behalf. The Company subsequently completed the formation of a subsidiary and acquired certain required licenses to operate its seismic acquisition business. However, as a result of the civil unrest in Libya, the Company has been unable to operate its business or utilize its equipment in Libya since the first quarter of 2011. During the second quarter of 2012, the Company began to transfer this equipment out of the area and anticipates completing the process during the third quarter of 2012. At June 30, 2012, the net book value of the equipment remaining in Libya was $7.6 million. While the Company maintains insurance coverage on these assets, this coverage is limited only to certain defined loss events. To date, these defined events have not occurred.

Multi-client data library consists of seismic surveys that are licensed to customers on a non-exclusive basis. The Company capitalizes all costs directly associated with acquiring and processing the data, including depreciation of the assets used in production of the surveys.

Multi-client seismic library costs and accumulated amortization were as follows (in thousands):

	June 30, 2012			December 31, 2011

	(Unaudited)
Acquisition and processing costs	$	162,404		$	169,881
Less accumulated amortization		(134,294	)		(128,369	)

Multi-client data library, net	$	28,110		$	41,512

Amortization expense related to the Company's multi-client data library for the three and six months ended June 30, 2012 was $14.3 million and $29.8 million, respectively. Amortization expense related to the Company's multi-client data library for the three and six months ended June 30, 2011 was $17.7 million and $39.4 million, respectively.

On March 15, 2012, the Company entered into a Purchase and Sale Agreement (the "Agreement") pursuant to which the Company agreed to sell certain North American seismic data in exchange for $10.0 million in cash. The data sold included 4,751 miles of 3D data, and 644 linear miles of 2D data. The Agreement provides that the Company will retain the right to receive 75% of the net revenues (as defined in the Agreement) generated and collected on this seismic data until the earlier of such time as the Company receives a total of $2.0 million in net revenues or March 7, 2017. If the Company receives $2.0 million in net revenues prior to March 7, 2017, then the Company will thereafter retain the right to receive 50% of the net revenues generated until March 7, 2017. The transaction closed on March 30, 2012 and the Company received proceeds of $10.0 million and recorded a loss of $5.1 million on the sale, which is included in direct operating expenses in the Company's interim condensed consolidated statement of operations. Pursuant to the Notes indenture and restrictions therein, the proceeds from the sale must be used for reinvestment in long-term assets. As of June 30, 2012, the Company has used most of the proceeds for that purpose except for $3.1 million which are included in non-current restricted cash in the Company's consolidated balance sheet.

	Six Months Ended June 30, 2012			Six Months Ended June 30, 2011

	(Unaudited)			(Unaudited)
Balance at the beginning of the period	$	12,987		$	11,794
Capitalized(1)		714			587
Amortized(2)		(2,017	)		(1,500	)
Write-offs(3)		—			(2,001	)

Balance at the end of the period	$	11,684		$	8,880

(1): In 2012, the Company recorded $0.7 million in deferred financing costs in connection with the financing with certain related parties. See note 3. In 2011, the Company recorded $0.5 million in deferred financing costs in connection with an amendment to the RBC Revolving Credit Facility.
(2): Includes $1.0 million and $0.9 million for the three months ended June 30, 2012 and 2011, respectively.
(3): During the second quarter of 2011, the company wrote off 1) $1.1 million, included in interest expense in the interim condensed consolidated statement of operations, related to an amendment to the RBC Revolving Credit Facility and 2) $1.1 million, included in other income (expense) in the interim condensed consolidated statement of operations, related to the early extinguishment of the RBC Revolving Credit Facility.

	June 30, 2012							December 31, 2011

	Gross Carrying Value		Accumulated Amortization			Total Net Book Value		Gross Carrying Value		Accumulated Amortization			Total Net Book Value
	(Unaudited)
Intangible assets:
Order backlog	$	5,700	$	(5,700	)	$	—	$	5,700	$	(5,629	)	$	71
License agreement		500		(119	)		381		500		(94	)		406

Total intangible assets	$	6,200	$	(5,819	)	$	381	$	6,200	$	(5,723	)	$	477

Other:
Cost method investments							7,123							6,713
Indemnification receivable from PGS and other assets							1,436							1,447

Total other							8,559							8,160

Total other assets, net						$	8,940						$	8,637

Amortization expense related to the above assets for the three and six months ended June 30, 2012 was $0.0 million and $0.1 million, respectively. Amortization expense related to the above assets for the three and six months ended June 30, 2011 was $0.6 million and $1.8 million, respectively. The decrease is primarily related to the order backlog, which was fully amortized in January 2012.