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Segment Information (Tables)

9 Months Ended

Sep. 30, 2012

Schedule of financial information with respect to reportable segments

The following table sets forth financial information with respect to our reportable segments (in thousands) (1):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Revenue:
Data Acquisition
North America proprietary	$	20,540		$	41,412		$	94,011		$	118,095
International proprietary	110,507			123,519			286,240			325,288
Multi-client	8,788			38,841			53,219			89,401
Subtotal Data Acquisition	139,835			203,772			433,470			532,784
Data Processing & Integrated Reservoir Geosciences	3,225			4,129			10,584			10,537
Eliminations	(1,366		)	(1,849		)	(4,075		)	(4,084		)
Total	$	141,694		$	206,052		$	439,979		$	539,237
Direct Operating Expenses:
Data Acquisition
North America proprietary	$	19,476		$	34,824		$	74,763		$	94,041
International proprietary	75,448			111,794			231,510			319,869
Multi-client	654			(41		)	6,284			177
Subtotal Data Acquisition	95,578			146,577			312,557			414,087
Data Processing & Integrated Reservoir Geosciences	2,766			3,083			8,850			8,995
Eliminations	(1,366		)	(1,849		)	(4,075		)	(4,084		)
Total	$	96,978		$	147,811		$	317,332		$	418,998
Depreciation and Amortization:
Data Acquisition
North America proprietary	$	3,150		$	2,524		$	9,960		$	9,737
International proprietary	12,392			12,765			37,968			40,321
Multi-client	5,939			32,052			35,774			71,439
Subtotal Data Acquisition	21,481			47,341			83,702			121,497
Data Processing & Integrated Reservoir Geosciences	470			426			1,329			1,078
Corporate	1,194			1,255			3,595			3,776
Total	$	23,145		$	49,022		$	88,626		$	126,351
Adjusted EBITDA(2):
Data Acquisition
North America proprietary	$	396		$	4,367		$	16,145		$	18,665
International proprietary	29,900			4,659			36,541			(16,545		)
Multi-client	7,668			38,332			45,713			87,667
Subtotal Data Acquisition	37,964			47,358			98,399			89,787
Data Processing & Integrated Reservoir Geosciences	455			1,002			1,715			1,408
Corporate	(6,251		)	(11,440		)	(27,655		)	(26,380		)
Total	$	32,168		$	36,920		$	72,459		$	64,815
Reconciliation of Adjusted EBITDA to Net Loss
Adjusted EBITDA	$	32,168		$	36,920		$	72,459		$	64,815
Provision for income taxes	(3,634		)	(1,882		)	(10,776		)	(4,710		)
Interest expense, net of interest income	(12,699		)	(10,951		)	(38,274		)	(35,041		)
Other (income) expense (as defined below)	1,008			22,830			8,225			30,975
Asset impairments	—			(40,000		)	—			(40,000		)
Depreciation and amortization	(23,145		)	(49,022		)	(88,626		)	(126,351		)
Net loss	$	(6,302	)	$	(42,105	)	$	(56,992	)	$	(110,312	)
Identifiable Assets: (at end of period)
Data Acquisition
North America proprietary							$	65,910		$	125,526
International proprietary							262,666			381,644
Multi-client(3)							47,076			89,119
Subtotal Data Acquisition							375,652			596,289
Data Processing & Integrated Reservoir Geosciences							7,692			7,824
Corporate							32,369			46,195
Total(4)(5)							$	415,713		$	650,308

(1) During the fourth quarter of 2011, the Company re-assessed its operating segments and concluded that its multi-client data library business is a separate reporting unit. Accordingly, prior periods have been restated.

(2) The Company defines Adjusted EBITDA as net income (loss) (the most directly generally accepted accounting principle or “GAAP” financial measure) before Interest, Taxes, Other Income (Expense) (including foreign exchange gains/losses, loss on early redemption of debt, gains/losses from changes in fair value of derivative liabilities and other income/expense), Asset Impairments and Depreciation and Amortization. The Chief Operating Decision Maker (“CODM”) primarily evaluates operating segment profitability through the use of this measure. However, as the majority of operating costs directly associated with acquiring and processing multi-client data are capitalized and amortized based on a specific formula, the CODM also considers the impact of amortization expense when specifically evaluating multi-client’s segment profitability.

(3) The North America proprietary segment shares certain productive assets used in its operations with the multi-client segment. Those productive assets are presented as part of the North America segment. Multi-client assets presented in the table above only include those assets specifically identified with the multi-client seismic data acquisition business such as cash, accounts receivable and the multi-client seismic data library.

(4) During the nine months ended September 30, 2012, capital expenditures, including capitalized leases and capitalized depreciation to multi-client, totaled $5.9 million, $5.3 million, $40.1 million and $1.3 million for North America proprietary, international proprietary, multi-client and data processing & integrated reservoir geosciences, respectively.

(5) During the third and fourth quarters of 2011, the Company recorded goodwill impairment charges totaling $132.4 million. Accordingly, since December 31, 2011, the Company had no goodwill.

- Definition

Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss.

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