Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2014

Condensed Financial Information of Parent Company Only Disclosure [Abstract]



	September 30, 2014
Balance Sheet	ION Geophysical Corporation			The Guarantors			All Other Subsidiaries			Consolidating Adjustments			Total Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	84,294		$	—		$	45,553		$	—		$	129,847
Accounts receivable, net	1,529			36,502			48,707			—			86,738
Unbilled receivables	—			42,059			15,418			—			57,477
Inventories	—			3,151			52,225			—			55,376
Prepaid expenses and other current assets	11,585			3,500			13,138			(1,770		)	26,453
Total current assets	97,408			85,212			175,041			(1,770		)	355,891
Deferred income tax asset	6,499			6,675			760			406			14,340
Property, plant, equipment and seismic rental equipment, net	6,547			28,832			24,986			—			60,365
Multi-client data library, net	—			219,251			24,666			—			243,917
Equity method investments	40,174			—			—			—			40,174
Investment in subsidiaries	796,608			280,302			—			(1,076,910		)	—
Goodwill	—			21,884			28,501			—			50,385
Intangible assets, net	—			6,752			2,439			—			9,191
Intercompany receivables	35,192			—			—			(35,192		)	—
Other assets	17,624			197			1,661			—			19,482
Total assets	$	1,000,052		$	649,105		$	258,054		$	(1,113,466	)	$	793,745
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	—		$	4,901		$	1,000		$	—		$	5,901
Accounts payable	1,886			12,443			16,337			—			30,666
Accrued expenses	14,214			42,489			19,988			(1,083		)	75,608
Accrued multi-client data library royalties	—			23,800			616			—			24,416
Deferred revenue	—			13,707			2,788			—			16,495
Total current liabilities	16,100			97,340			40,729			(1,083		)	153,086
Long-term debt, net of current maturities	175,000			4,444			139			—			179,583
Intercompany payables	490,127			34,963			229			(525,319		)	—
Other long-term liabilities	2,829			130,775			9,455			(283		)	142,776
Total liabilities	684,056			267,522			50,552			(526,685		)	475,445
Redeemable noncontrolling interests	—			—			2,086			—			2,086
Equity:
Common stock	1,642			290,460			5,787			(296,247		)	1,642
Additional paid-in capital	886,170			175,005			247,585			(422,590		)	886,170
Accumulated earnings (deficit)	(553,531		)	334,625			28,126			(362,751		)	(553,531		)
Accumulated other comprehensive income (loss)	(11,720		)	6,736			(11,416		)	4,680			(11,720		)
Due from ION Geophysical Corporation	—			(425,243		)	(64,884		)	490,127			—
Treasury stock	(6,565		)	—			—			—			(6,565		)
Total stockholders’ equity	315,996			381,583			205,198			(586,781		)	315,996
Noncontrolling interests	—			—			218			—			218
Total equity	315,996			381,583			205,416			(586,781		)	316,214
Total liabilities and equity	$	1,000,052		$	649,105		$	258,054		$	(1,113,466	)	$	793,745



	December 31, 2013
Balance Sheet	ION Geophysical Corporation			The Guarantors			All Other Subsidiaries			Consolidating Adjustments			Total Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	124,701		$	—		$	23,355		$	—		$	148,056
Accounts receivable, net	1,874			99,547			48,027			—			149,448
Unbilled receivables	—			33,490			15,978			—			49,468
Inventories	—			6,595			50,578			—			57,173
Prepaid expenses and other current assets	12,888			5,030			7,438			(584		)	24,772
Total current assets	139,463			144,662			145,376			(584		)	428,917
Deferred income tax asset	6,513			6,960			489			688			14,650
Property, plant, equipment and seismic rental equipment, net	6,440			29,845			10,399			—			46,684
Multi-client data library, net	—			212,572			26,212			—			238,784
Equity method investments	51,065			—			2,800			—			53,865
Investment in subsidiaries	699,695			248,482			—			(948,177		)	—
Goodwill	—			26,984			28,892			—			55,876
Intangible assets, net	—			8,246			3,001			—			11,247
Intercompany receivables	8,313			13,419			—			(21,732		)	—
Other assets	14,315			56			24,262			(23,985		)	14,648
Total assets	$	925,804		$	691,226		$	241,431		$	(993,790	)	$	864,671
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	—		$	4,716		$	1,190		$	—		$	5,906
Accounts payable	3,515			11,741			7,364			34			22,654
Accrued expenses	16,652			54,250			13,392			64			84,358
Accrued multi-client data library royalties	—			45,921			539			—			46,460
Deferred revenue	—			16,387			4,295			—			20,682
Total current liabilities	20,167			133,015			26,780			98			180,060
Long-term debt, net of current maturities	210,000			3,655			591			—			214,246
Intercompany payables	426,134			—			21,732			(447,866		)	—
Other long-term liabilities	11,757			214,211			8,637			(24,003		)	210,602
Total liabilities	668,058			350,881			57,740			(471,771		)	604,908
Redeemable noncontrolling interests	—			—			1,878			—			1,878
Equity:
Common stock	1,637			290,460			19,138			(309,598		)	1,637
Additional paid-in capital	879,969			180,700			235,381			(416,081		)	879,969
Accumulated earnings (deficit)	(606,157		)	232,186			(4,010		)	(228,176		)	(606,157		)
Accumulated other comprehensive income (loss)	(11,138		)	6,218			(11,920		)	5,702			(11,138		)
Due from ION Geophysical Corporation	—			(369,219		)	(56,915		)	426,134			—
Treasury stock	(6,565		)	—			—			—			(6,565		)
Total stockholders’ equity	257,746			340,345			181,674			(522,019		)	257,746
Noncontrolling interests	—			—			139			—			139
Total equity	257,746			340,345			181,813			(522,019		)	257,885
Total liabilities and equity	$	925,804		$	691,226		$	241,431		$	(993,790	)	$	864,671

Condensed Income Statement



	Three Months Ended September 30, 2014
Income Statement	ION Geophysical Corporation			The Guarantors			All Other Subsidiaries			Consolidating Adjustments			Total Consolidated
	(In thousands)
Net revenues	$	—		$	33,344		$	73,947		$	(751	)	$	106,540
Cost of sales	—			32,447			45,621			(751		)	77,317
Gross profit	—			897			28,326			—			29,223
Total operating expenses	7,599			15,357			11,616			—			34,572
Income (loss) from operations	(7,599		)	(14,460		)	16,710			—			(5,349		)
Interest expense, net	(4,931		)	(58		)	(59		)	—			(5,048		)
Intercompany interest, net	(90		)	566			(476		)	—			—
Equity in earnings (losses) of investments	(12,131		)	8,500			—			(1,927		)	(5,558		)
Other income (expense)	(17		)	21			(626		)	—			(622		)
Net income (loss) before income taxes	(24,768		)	(5,431		)	15,549			(1,927		)	(16,577		)
Income tax expense (benefit)	(227		)	800			7,772			—			8,345
Net income (loss)	(24,541		)	(6,231		)	7,777			(1,927		)	(24,922		)
Net loss attributable to noncontrolling interests	—			—			381			—			381
Net income (loss) applicable to common shares	$	(24,541	)	$	(6,231	)	$	8,158		$	(1,927	)	$	(24,541	)
Comprehensive net income (loss)	$	(26,407	)	$	(8,838	)	$	5,168		$	3,289		$	(26,788	)
Comprehensive income attributable to noncontrolling interest	—			—			381			—			381
Comprehensive net income (loss) attributable to ION	$	(26,407	)	$	(8,838	)	$	5,549		$	3,289		$	(26,407	)



	Three Months Ended September 30, 2013
Income Statement	ION Geophysical Corporation			The Guarantors			All Other Subsidiaries			Consolidating Adjustments			Total Consolidated
	(In thousands)
Net revenues	$	—		$	33,039		$	47,516		$	(717	)	$	79,838
Cost of sales	—			46,983			48,676			(717		)	94,942
Gross loss	—			(13,944		)	(1,160		)	—			(15,104		)
Total operating expenses	8,579			13,648			19,197			—			41,424
Loss from operations	(8,579		)	(27,592		)	(20,357		)	—			(56,528		)
Interest expense, net	(4,185		)	(51		)	(45		)	—			(4,281		)
Intercompany interest, net	(554		)	1,497			(943		)	—			—
Equity in losses of investments	(115,911		)	(29,066		)	(5,030		)	144,815			(5,192		)
Other expense	(1,562		)	(71,886		)	(853		)	—			(74,301		)
Net loss before income taxes	(130,791		)	(127,098		)	(27,228		)	144,815			(140,302		)
Income tax expense (benefit)	65,967			(12,459		)	3,446			—			56,954
Net loss	(196,758		)	(114,639		)	(30,674		)	144,815			(197,256		)
Net loss attributable to noncontrolling interests	—			—			498			—			498
Net loss attributable to ION	(196,758		)	(114,639		)	(30,176		)	144,815			(196,758		)
Preferred stock dividends	5,338			—			—			—			5,338
Net loss applicable to common shares	$	(202,096	)	$	(114,639	)	$	(30,176	)	$	144,815		$	(202,096	)
Comprehensive net loss	$	(194,934	)	$	(115,371	)	$	(24,404	)	$	139,277		$	(195,432	)
Comprehensive loss attributable to noncontrolling interest	—			—			498			—			498
Comprehensive net loss attributable to ION	$	(194,934	)	$	(115,371	)	$	(23,906	)	$	139,277		$	(194,934	)



	Nine Months Ended September 30, 2014
Income Statement	ION Geophysical Corporation			The Guarantors			All Other Subsidiaries			Consolidating Adjustments			Total Consolidated
	(In thousands)
Net revenues	$	—		$	159,347		$	215,400		$	(2,029	)	$	372,718
Cost of sales	—			117,461			132,981			(2,029		)	248,413
Gross profit	—			41,886			82,419			—			124,305
Total operating expenses	24,138			45,938			36,122			—			106,198
Income (loss) from operations	(24,138		)	(4,052		)	46,297			—			18,107
Interest expense, net	(13,962		)	(148		)	(669		)	—			(14,779		)
Intercompany interest, net	(234		)	1,519			(1,285		)	—			—
Equity in earnings (losses) of investments	92,195			32,615			738			(134,575		)	(9,027		)
Other income (expense)	(1,231		)	73,504			1,697			—			73,970
Net income before income taxes	52,630			103,438			46,778			(134,575		)	68,271
Income tax expense	4			999			13,258			—			14,261
Net income	52,626			102,439			33,520			(134,575		)	54,010
Net income attributable to noncontrolling interests	—			—			(1,384		)	—			(1,384		)
Net income applicable to common shares	$	52,626		$	102,439		$	32,136		$	(134,575	)	$	52,626
Comprehensive net income	$	52,044		$	102,957		$	34,024		$	(135,597	)	$	53,428
Comprehensive income attributable to noncontrolling interest	—			—			(1,384		)	—			(1,384		)
Comprehensive net income attributable to ION	$	52,044		$	102,957		$	32,640		$	(135,597	)	$	52,044



	Nine Months Ended September 30, 2013
Income Statement	ION Geophysical Corporation			The Guarantors			All Other Subsidiaries			Consolidating Adjustments			Total Consolidated
	(In thousands)
Net revenues	$	—		$	183,414		$	148,120		$	(1,044	)	$	330,490
Cost of sales	—			162,838			112,225			(1,044		)	274,019
Gross profit	—			20,576			35,895			—			56,471
Total operating expenses	23,995			44,260			36,051			—			104,306
Loss from operations	(23,995		)	(23,684		)	(156		)	—			(47,835		)
Interest expense, net	(7,926		)	(18		)	(159		)	—			(8,103		)
Intercompany interest, net	(344		)	951			(607		)	—			—
Equity in losses of investments	(217,748		)	(19,335		)	(7,376		)	234,045			(10,414		)
Other income (expense)	2,335			(181,907		)	(820		)	—			(180,392		)
Net loss before income taxes	(247,678		)	(223,993		)	(9,118		)	234,045			(246,744		)
Income tax expense (benefit)	18,001			(11,231		)	12,680			—			19,450
Net loss	(265,679		)	(212,762		)	(21,798		)	234,045			(266,194		)
Net loss attributable to noncontrolling interests	—			—			515			—			515
Net loss attributable to ION	(265,679		)	(212,762		)	(21,283		)	234,045			(265,679		)
Preferred stock dividends	6,014			—			—			—			6,014
Net loss applicable to common shares	$	(271,693	)	$	(212,762	)	$	(21,283	)	$	234,045		$	(271,693	)
Comprehensive net loss	$	(267,093	)	$	(213,491	)	$	(22,412	)	$	235,388		$	(267,608	)
Comprehensive loss attributable to noncontrolling interest	—			—			515			—			515
Comprehensive net loss attributable to ION	$	(267,093	)	$	(213,491	)	$	(21,897	)	$	235,388		$	(267,093	)

Condensed Cash Flow Statement



	Nine Months Ended September 30, 2014
Statement of Cash Flows	ION Geophysical Corporation			The Guarantors			All Other Subsidiaries			Consolidating Adjustments		Total Consolidated
	(In thousands)
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	(40,896	)	$	63,588		$	64,284		$	—	$	86,976
Cash flows from investing activities:
Cash invested in multi-client data library	—			(57,192		)	(148		)	—		(57,340		)
Purchase of property, plant, equipment and seismic rental equipment	(1,501		)	(4,165		)	(1,176		)	—		(6,842		)
Repayment of advances to INOVA Geophysical	1,000			—			—			—		1,000
Investment in and advances to OceanGeo B.V.	—			—			(3,683		)	—		(3,683		)
Cash of OceanGeo B.V. upon acquiring a controlling interest	—			—			609			—		609
Net proceeds from sale of Source product line	—			9,881			4,513			—		14,394
Other investing activities	579			—			349			—		928
Net cash provided by (used in) investing activities	78			(51,476		)	464			—		(50,934		)
Cash flows from financing activities:
Payments under revolving line of credit	(50,000		)	—			—			—		(50,000		)
Borrowings under revolving line of credit	15,000			—			—			—		15,000
Payments on notes payable and long-term debt	—			(4,470		)	(7,267		)	—		(11,737		)
Costs associated with issuance of debt	(2,126		)	—			—			—		(2,126		)
Capital contribution from affiliate	—			—			—			—		—
Intercompany lending	37,114			(7,642		)	(29,472		)	—		—
Acquisition of non-controlling interest	—			—			(6,000		)			(6,000		)
Proceeds from employee stock purchases and exercise of stock options	577			—			—			—		577
Other financing activities	(154		)	—			—			—		(154		)
Net cash provided by (used in) financing activities	411			(12,112		)	(42,739		)	—		(54,440		)
Effect of change in foreign currency exchange rates on cash and cash equivalents	—			—			189			—		189
Net increase (decrease) in cash and cash equivalents	(40,407		)	—			22,198			—		(18,209		)
Cash and cash equivalents at beginning of period	124,701			—			23,355			—		148,056
Cash and cash equivalents at end of period	$	84,294		$	—		$	45,553		$	—	$	129,847



	Nine Months Ended September 30, 2013
Statement of Cash Flows	ION Geophysical Corporation			The Guarantors			All Other Subsidiaries			Consolidating Adjustments			Total Consolidated
	(In thousands)
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	(46,655	)	$	66,645		$	58,525		$	—		$	78,515
Cash flows from investing activities:
Cash invested in multi-client data library	—			(83,884		)	(2,462		)	—			(86,346		)
Purchase of property, plant, equipment and seismic rental equipment	(1,965		)	(7,132		)	(4,442		)	—			(13,539		)
Net advances to INOVA Geophysical	(8,000		)	—			—			—			(8,000		)
Investment in and advances to OceanGeo B.V.	—			—			(9,500		)	—			(9,500		)
Proceeds from sale of a cost method investment	4,150			—			—			—			4,150
Investment in convertible notes	(2,000		)	—			—			—			(2,000		)
Capital contribution to affiliate	(5,695		)	(7,897		)	—			13,592			—
Other investing activities	—			76			—			—			76
Net cash used in investing activities	(13,510		)	(98,837		)	(16,404		)	13,592			(115,159		)
Cash flows from financing activities:
Proceeds from issuance of notes	175,000			—			—			—			175,000
Payments under revolving line of credit	(97,250		)	—			—			—			(97,250		)
Payments on notes payable and long-term debt	—			(2,516		)	(780		)	—			(3,296		)
Cost associated with issuance of notes	(6,731		)	—			—			—			(6,731		)
Capital contribution from affiliate	—			5,695			7,897			(13,592		)	—
Intercompany lending	2,371			29,013			(31,384		)	—			—
Payment of preferred dividends	(6,014		)	—			—			—			(6,014		)
Proceeds from employee stock purchases and exercise of stock options	2,367			—			—			—			2,367
Other financing activities	790			—			—			—			790
Net cash provided by (used in) financing activities	70,533			32,192			(24,267		)	(13,592		)	64,866
Effect of change in foreign currency exchange rates on cash and cash equivalents	—			—			(608		)	—			(608		)
Net increase in cash and cash equivalents	10,368			—			17,246			—			27,614
Cash and cash equivalents at beginning of period	30,343			—			30,628						60,971
Cash and cash equivalents at end of period	$	40,711		$	—		$	47,874		$	—		$	88,585