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Equity Method Investments
 6 Months Ended
Jun. 30, 2013
Equity Method Investments and Joint Ventures [Abstract]  
Equity Method Investments
Equity Method Investments
The following table reflects the change in the Company’s equity method investments and note receivable from equity method investees during the six months ended June 30, 2013 (in thousands):
 
INOVA Geophysical
 
GeoRXT
 
Total
Investment at December 31, 2012
$
73,925

 
$
—

 
$
73,925

Investment in equity
—

 
1,500

 
1,500

Note receivable
—

 
8,000

 
8,000

Equity in losses of investments
(2,876
)
 
(2,346
)
 
(5,222
)
Equity interest in investees' other comprehensive income (loss)
(549
)
 
—

 
(549
)
Investments at June 30, 2013
$
70,500

 
$
7,154

 
$
77,654


GeoRXT — In late February 2013, the Company purchased from Reservoir Exploration Technology ASA its 30% interest in a joint venture entity, GeoRXT B.V. (“GeoRXT”), for $1.5 million. GeoRXT is headquartered in Rio de Janeiro, Brazil, and specializes in seismic acquisition operations using ocean-bottom cables deployed from vessels leased by GeoRXT. The Company was granted an option, exercisable at any time on or prior to May 15, 2013, to increase its ownership percentage to 50%, which would have required making additional capital contributions to GeoRXT of $40.0 million. Additionally, the Company provided GeoRXT with an $8.0 million working capital loan, the repayment of which is guaranteed by the Company’s majority joint venture partner in GeoRXT, Georadar Levantamentos Geofisicos S/A (“Georadar”). The stated maturity date of the loan was May 25, 2013. The Company continues to perform a due diligence review of GeoRXT and has not yet increased its ownership interest in GeoRXT to a 50% equity interest. If the Company increases its ownership interest, a portion of the Company’s required capital contribution to GeoRXT for the additional equity interest would likely be effectively funded through the conversion of the loan into equity. As a result, the Company has elected to allow this loan to remain outstanding until the Company decides whether to increase its ownership interest.
The Company accounts for its interest in GeoRXT on a current basis; its shares of losses in GeoRXT for the three months and six months ended June 30, 2013 were $1.6 million and $2.3 million, respectively. The Company’s share of losses for the three months ended June 30, 2013 would have effectively reduced its equity method investment in GeoRXT to less than zero. Therefore, the Company reduced its equity method investment to zero and recorded its share of additional losses, totaling $0.8 million, to reduce the carrying value of the note receivable from GeoRXT. The following table reflects the summarized financial information for GeoRXT for the three months ended June 30, 2013 and the period from March 1 to June 30, 2013 (in thousands):
 
Three Months Ended
June 30, 2013
 
Period from
March 1 to
June 30, 2013
Net revenues
$
13,698

 
$
19,668

Gross profit
$
(195
)
 
$
122

Loss from operations
$
(5,107
)
 
$
(6,876
)
Net loss
$
(5,151
)
 
$
(7,045
)

INOVA Geophysical — The Company accounts for its 49% interest in INOVA Geophysical as an equity method investment and records its share of earnings and losses of INOVA Geophysical on a one fiscal quarter lag basis. For the three and six months ended June 30, 2013, the Company recorded its share of losses from INOVA Geophysical of $(4.7) million and $(2.9) million, respectively, compared to equity earnings in the same periods one year ago of $3.8 million and $6.2 million, respectively. The following table reflects the summarized financial information for INOVA Geophysical for the three months ended March 31, 2013 and 2012 and the six-month periods from October 1 to March 31 of 2013 and 2012 (in thousands):
 
Three months ended March 31,
 
Six-Month Period from October 1 through March 31
 
2013
 
2012
 
2013
 
2012
Net revenues
$
22,095

 
$
56,779

 
$
81,706

 
$
115,777

Gross profit
$
1,808

 
$
19,502

 
$
14,135

 
$
33,466

Income (loss) from operations
$
(8,511
)
 
$
8,910

 
$
(8,761
)
 
$
15,419

Net income (loss)
$
(9,772
)
 
$
8,654

 
$
(6,030
)
 
$
14,371