Condensed Consolidating Financial Information

12 Months Ended

Dec. 31, 2011

Condensed Consolidating Financial Information

Condensed Consolidating Financial Information

NOTE 21: Condensed Consolidating Financial Information

The Notes are fully and unconditionally guaranteed, jointly and severally, by the Company, and by each of the Company’s current and future domestic subsidiaries (other than Geokinetics Holdings, USA, Inc., which is the issuer of the Notes).  The non-guarantor subsidiaries consist of all subsidiaries and branches outside of the United States.  Separate condensed consolidating financial statement information for the parent, guarantor subsidiaries and non-guarantor subsidiaries as of December 31, 2011 and 2010 and for the years ended December 31, 2011, 2010 and 2009 is as follows (in thousands):

	BALANCE SHEET December 31, 2011
	Guarantor Parent Company		Issuer Subsidiary		Guarantor Subsidiaries		Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets	$	971	$	—	$	134,119	$	103,310		$	—		$	238,400
Property and equipment, net	16,666		—		174,564		21,406			—			212,636
Investment in subsidiaries	197,931		377,362		44,118		14,206			(633,617		)	—
Intercompany accounts	23,454		80,834		12,845		(117,133		)	—			—
Other non-current assets	1,079		11,908		42,572		7,754			(177		)	63,136
Total assets	$	240,101	$	470,104	$	408,218	$	29,543		$	(633,794	)	$	514,172
Liabilities, Mezzanine and Stockholders’ Equity (Deficit)
Current liabilities	$	48,482	$	1,565	$	78,914	$	86,362		$	—		$	215,323
Long-term debt and capital lease obligations, net of current portion	—		346,615		—		3,568			—			350,183
Deferred Income tax and other non-current liabilities	30,458		—		30,798		1,138			—			62,394
Derivative liabilities	5,778		—		—		—			—			5,778
Total liabilities	84,718		348,180		109,712		91,068			—			633,678
Mezzanine equity	83,313		—		—		—			—			83,313
Stockholders’ equity (deficit)	72,070		121,924		298,506		(61,525		)	(633,794		)	(202,819		)
Total liabilities, mezzanine and stockholders’ equity (deficit)	$	240,101	$	470,104	$	408,218	$	29,543		$	(633,794	)	$	514,172

	STATEMENT OF OPERATIONS Year Ended December 31, 2011
	Guarantor Parent Company			Issuer Subsidiary			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Total revenue	$	518		$	—		$	414,837		$	433,840		$	(85,466	)	$	763,729
Equity in earnings of subsidiaries	(216,304		)	—			(4,758		)	(58,177		)	279,239			—
Expenses:
Direct operating	25,398			—			216,813			441,400			(80,336		)	603,275
Depreciation and amortization	6,564			—			126,071			25,753			—			158,388
General and administrative	(982		)	—			39,789			41,754			(4,953		)	75,608
Asset impairments	—			—			132,376			2,380			—			134,756
Total expenses	30,980			—			515,049			511,287			(85,289		)	972,027
Loss from operations	(246,766		)	—			(104,970		)	(135,624		)	279,062			(208,298		)
Interest income (expense), net	(8,176		)	(39,323		)	607			(648		)	—			(47,540		)
Other income (expenses), net	32,889			(1,121		)	6,322			(2,265		)	—			35,825
Loss before income taxes	(222,053		)	(40,444		)	(98,041		)	(138,537		)	279,062			(220,013		)
Provision for income taxes	—			—			2,037			3			—			2,040
Net loss	$	(222,053	)	$	(40,444	)	$	(100,078	)	$	(138,540	)	$	279,062		$	(222,053	)

	STATEMENT OF CASH FLOWS Year Ended December 31, 2011
	Guarantor Parent Company			Issuer Subsidiary			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	(4,740	)	$	(24,558	)	$	62,558		$	26,214		$	—	$	59,474
Net cash provided (used in) investing activities	—			—			(67,196		)	(14,807		)	—		(82,003		)
Net cash used in financing activities	—			24,558			—			(233		)	—		24,325
Net increase (decrease) in cash	$	(4,740	)	$			$	(4,638	)	$	11,174		$		$	1,796

	BALANCE SHEET December 31, 2010
	Guarantor Parent Company		IssuerSubsidiary		Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets	$	10,819	$	—	$	71,935		$	169,931		$	—		$	252,685
Property and equipment, net	23,408		—		220,817			22,179			—			266,404
Investment in subsidiaries	174,526		377,363		48,185			370			(600,444		)	—
Intercompany accounts	32,710		90,479		(76,348		)	(53,108		)	6,267			—
Other non-current assets	469		10,571		206,465			33,654			(45,084		)	206,075
Total assets	$	241,932	$	478,413	$	471,054		$	173,026		$	(639,261	)	$	725,164
Liabilities, Mezzanine and Stockholders’ Equity
Current liabilities	$	34,675	$	1,566	$	58,300		$	113,279		$	459		$	208,279
Long-term debt and capital lease obligations, net of current portion	—		318,471		—			813			—			319,284
Deferred income taxes and other non-current liabilities	28,530		—		30,558			3,468			—			62,556
Derivative liabilities	38,271		—		—			—			—			38,271
Total liabilities	101,476		320,037		88,858			117,560			459			628,390
Mezzanine equity	74,987		—		—			—			—			74,987
Stockholders’ equity	65,469		158,376		382,196			55,466			(639,720		)	21,787
Total liabilities, mezzanine and stockholders’ equity	$	241,932	$	478,413	$	471,054		$	173,026		$	(639,261	)	$	725,164

	STATEMENT OF OPERATIONS Year Ended December 31, 2010
	Guarantor Parent Company			Issuer Subsidiary			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Total revenue	$	328		$	—		$	236,697		$	374,214		$	(53,105	)	$	558,134
Equity in earnings of subsidiaries	(120,228		)	—			(46,478		)	(17,221		)	183,927			—
Expenses:
Direct operating	(2,000		)	—			134,458			376,546			(53,105		)	455,899
Depreciation and amortization	4,908			—			98,900			9,089			—			112,897
General and administrative	5,893			1,565			21,314			52,622			—			81,394
Total expenses	8,801			1,565			254,672			438,257			(53,105		)	650,190
Loss from operations	(128,701		)	(1,565		)	(64,453		)	(81,264		)	183,927			(92,056		)
Interest income (expense), net	(6,033		)	(33,494		)	188			1,512			—			(37,827		)
Other income (expenses), net	(9,043		)	208			1,852			2,992			—			(3,991		)
Loss before income taxes	(143,777		)	(34,851		)	(62,413		)	(76,760		)	183,927			(133,874		)
Provision for income taxes	(5,093		)	14			145			9,744			—			4,810
Net loss	$	(138,684	)	$	(34,865	)	$	(62,558	)	$	(86,504	)	$	183,927		$	(138,684	)

	STATEMENT OF CASH FLOWS Year Ended December 31, 2010
	Guarantor Parent Company			Issuer Subsidiary			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	(12,630	)	$	(15,513	)	$	53,564		$	6,115		$	—	$	31,536
Net cash provided (used in) investing activities	(184,818		)	122,971			(78,166		)	(20,116		)	180,832		20,703
Net cash used in financing activities	(19,497		)	—			—			(67		)	—		(19,564		)
Net increase (decrease) in cash	$	(216,945	)	$	107,458		$	(24,602	)	$	(14,068	)	$	180,832	$	32,675

	STATEMENT OF OPERATIONS Year Ended December 31, 2009
	Guarantor Parent Company			Issuer Subsidiary			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Consolidated
Total revenue	$	—		$	—		$	120,367		$	445,945	$	(55,346	)	$	510,966
Equity in earnings of subsidiaries	22,673			—			38,087			—		(60,760		)	—
Expenses:
Direct operating	9,940			—			61,209			367,938		(66,273		)	372,814
Depreciation and amortization	3,038			—			41,983			11,900		—			56,921
General and administrative	10,736			—			9,445			34,721		—			54,902
Total expenses	23,714			—			112,637			414,559		(66,273		)	484,637
Income (loss) from operations	(1,041		)	—			45,817			31,386		(49,833		)	26,329
Interest income (expense), net	(5,201		)	(717		)	(179		)	126		—			(5,971		)
Other income (expense), net	(10,310		)	—			(3,034		)	3,903		—			(9,441		)
Income (loss) before income taxes	(16,552		)	(717		)	42,604			35,415		(49,833		)	10,917
Provision for income taxes	(12,149		)	4			—			35,397		—			23,252
Net income (loss)	$	(4,403	)	$	(721	)	$	42,604		$	18	$	(49,833	)	$	(12,335	)

	STATEMENT OF CASH FLOWS Year Ended December 31, 2009
	Guarantor Parent Company			Issuer Subsidiary			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations		Consolidated
Net cash provided by (used in) operating activities	$	73,813		$	8,556		$	7,479		$	(36,589	)	$	—	$	53,259
Net cash provided (used in) investing activities	(12,218		)	(303,803		)	(35,129		)	2,135			—		(349,015		)
Net cash provided (used in) financing activities	297,661			—			(9,002		)	3,932			—		292,591
Net increase (decrease) in cash	$	359,256		$	(295,247	)	$	(36,652	)	$	(30,522	)	$	—	$	(3,165	)