Segment and Geographic Information

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Segment and Geographic Information

Segment and Geographic Information

The Company evaluates and reviews its results based on three segments: Solutions, Systems and Software; and its INOVA Geophysical joint venture. For operating results of INOVA Geophysical, see Note 3 “Equity Method Investment in INOVA Geophysical.” The Company measures segment operating results based on income from operations. The Legacy Land Systems (INOVA) segment represents the disposed land division operations through March 25, 2010, the date of the closing of INOVA Geophysical.

A summary of segment information is as follows (in thousands):

	Years Ended December 31,
	2012		2011		2010
Net revenues:
Solutions:
New Venture	$	147,346	$	98,335	$	81,293
Data Library	88,085		76,332		87,664
Total multi-client revenues	235,431		174,667		168,957
Data Processing	115,834		88,783		107,997
Total	$	351,265	$	263,450	$	276,954
Systems:
Towed Streamer	$	77,769	$	111,453	$	83,567
Ocean Bottom	14,823		960		1,876
Other	39,404		40,591		28,783
Total	$	131,996	$	153,004	$	114,226
Software:
Software Systems	$	39,738	$	36,031	$	34,465
Services	3,318		2,136		2,166
Total	$	43,056	$	38,167	$	36,631
Legacy Land Systems (INOVA)	$	—	$	—	$	16,511
Total	$	526,317	$	454,621	$	444,322

	Years Ended December 31,
	2012			2011			2010
Gross profit:
Solutions	$	132,950		$	84,647		$	93,804
Systems	50,790			61,109			48,557
Software	32,061			27,689			24,356
Legacy Land Systems (INOVA)	—			—			(984		)
Total	$	215,801		$	173,445		$	165,733
Gross margin:
Solutions	38		%	32		%	34		%
Systems	38		%	40		%	43		%
Software	74		%	73		%	66		%
Legacy Land Systems (INOVA)	—		%	—		%	(6		)%
Total	41		%	38		%	37		%
Income from operations:
Solutions	$	88,589		$	50,620		$	60,632
Systems	10,132			33,034			27,749
Software	28,129			24,463			21,936
Corporate and other	(52,323		)	(41,322		)	(47,847		)
Legacy Land Systems (INOVA)	—			—			(9,623		)
Income from operations	74,527			66,795			52,847
Interest expense, net	(5,265		)	(5,784		)	(30,770		)
Equity in earnings (losses) of INOVA Geophysical	297			(22,862		)	(23,724		)
Other income (expense)	17,124			(3,447		)	(8,249		)
Income (loss) before income taxes	$	86,683		$	34,702		$	(9,896	)

Depreciation and amortization (including multi-client data library):
Solutions	$	98,342	$	84,958	$	96,271
Systems	4,185		3,229		2,992
Software	776		1,116		2,461
Corporate and other	1,979		1,931		2,644
Legacy Land Systems (INOVA)	—		—		6,367
Total	$	105,282	$	91,234	$	110,735

	December 31,
	2012		2011
Total assets:
Solutions	$	438,663	$	321,384
Systems	156,484		179,154
Software	45,948		38,949
Corporate and other	179,488		134,571
Total	$	820,583	$	674,058

	December 31,
	2012		2011
Total assets by geographic area:
North America	$	533,035	$	463,287
Europe	91,101		59,730
Middle East	130,070		111,336
Latin America	51,692		28,692
Other	14,685		11,013
Total	$	820,583	$	674,058

Intersegment sales are insignificant for all periods presented. Corporate assets include all assets specifically related to corporate personnel and operations, a majority of cash and cash equivalents, and the investment in INOVA Geophysical. 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,
	2012		2011		2010
Europe	$	200,589	$	160,230	$	136,846
North America	164,157		155,877		177,480
Asia Pacific	55,028		78,777		51,496
Latin America	46,212		12,199		45,954
Middle East	37,471		28,227		10,536
Africa	18,469		7,926		18,417
Commonwealth of Independent States	4,391		11,385		3,593
Total	$	526,317	$	454,621	$	444,322

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.