Condensed Consolidating Financial Information (Tables)

9 Months Ended

Sep. 30, 2018

Condensed Financial Information of Parent Company Only Disclosure [Abstract]

Condensed Balance Sheet

	September 30, 2018
Balance Sheet	ION Geophysical Corporation			The Guarantors			All Other Subsidiaries			Consolidating Adjustments			Total Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	20,553		$	18		$	9,472		$	—		$	30,043
Accounts receivable, net	8			15,101			8,515			—			23,624
Unbilled receivables	—			14,326			11,398			—			25,724
Inventories	—			9,421			5,708			—			15,129
Prepaid expenses and other current assets	2,107			1,211			2,536			—			5,854
Total current assets	22,668			40,077			37,629			—			100,374
Deferred income tax asset	1,264			2,645			149			—			4,058
Property, plant, equipment and seismic rental equipment, net	375			9,155			40,438			—			49,968
Multi-client data library, net	—			75,631			7,623			—			83,254
Investment in subsidiaries	812,068			261,875			—			(1,073,943		)	—
Goodwill	—			—			23,590			—			23,590
Intercompany receivables	—			271,410			66,287			(337,697		)	—
Other assets	1,708			935			70			—			2,713
Total assets	$	838,083		$	661,728		$	175,786		$	(1,411,640	)	$	263,957
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	—		$	1,335		$	—		$	—		$	1,335
Accounts payable	3,166			25,825			2,881			—			31,872
Accrued expenses	13,356			11,088			9,112			—			33,556
Accrued multi-client data library royalties	—			28,020			215			—			28,235
Deferred revenue	—			7,507			2,820			—			10,327
Total current liabilities	16,522			73,775			15,028			—			105,325
Long-term debt, net of current maturities	117,400			2,049			—			—			119,449
Intercompany payables	678,114			—			—			(678,114		)	—
Other long-term liabilities	436			5,815			6,018			—			12,269
Total liabilities	812,472			81,639			21,046			(678,114		)	237,043
Equity:
Common stock	140			290,460			47,776			(338,236		)	140
Additional paid-in capital	951,811			180,700			203,907			(384,607		)	951,811
Accumulated earnings (deficit)	(906,749		)	365,725			1,973			(367,698		)	(906,749		)
Accumulated other comprehensive income (loss)	(19,591		)	4,324			(20,923		)	16,599			(19,591		)
Due from ION Geophysical Corporation	—			(261,120		)	(79,296		)	340,416			—
Total stockholders’ equity	25,611			580,089			153,437			(733,526		)	25,611
Noncontrolling interest	—			—			1,303			—			1,303
Total equity	25,611			580,089			154,740			(733,526		)	26,914
Total liabilities and equity	$	838,083		$	661,728		$	175,786		$	(1,411,640	)	$	263,957

	December 31, 2017
Balance Sheet	ION Geophysical Corporation			The Guarantors			All Other Subsidiaries			Consolidating Adjustments			Total Consolidated
	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	39,344		$	66		$	12,646		$	—		$	52,056
Accounts receivable, net	50			12,496			6,932			—			19,478
Unbilled receivables	—			34,484			2,820			—			37,304
Inventories	—			8,686			5,822			—			14,508
Prepaid expenses and other current assets	2,427			769			4,447			—			7,643
Total current assets	41,821			56,501			32,667			—			130,989
Deferred income tax asset	1,264			336			153			—			1,753
Property, plant, equipment and seismic rental equipment, net	511			7,170			44,472			—			52,153
Multi-client data library, net	—			81,442			7,858			—			89,300
Investment in subsidiaries	753,045			321,934			—			(1,074,979		)	—
Goodwill	—			—			24,089			—			24,089
Intercompany receivables	—			225,144			56,633			(281,777		)	—
Other assets	686			1,811			288			—			2,785
Total assets	$	797,327		$	694,338		$	166,160		$	(1,356,756	)	$	301,069
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	$	39,774		$	250		$	—		$	—		$	40,024
Accounts payable	1,774			20,982			2,195			—			24,951
Accrued expenses	12,284			16,957			9,456			—			38,697
Accrued multi-client data library royalties	—			26,824			211			—			27,035
Deferred revenue	—			7,231			1,679			—			8,910
Total current liabilities	53,832			72,244			13,541			—			139,617
Long-term debt, net of current maturities	116,691			29			—			—			116,720
Intercompany payables	596,783			—			—			(596,783		)	—
Other long-term liabilities	454			6,084			7,388			—			13,926
Total liabilities	767,760			78,357			20,929			(596,783		)	270,263
Equity:
Common stock	120			290,460			49,394			(339,854		)	120
Additional paid-in capital	903,247			180,701			202,290			(382,991		)	903,247
Accumulated earnings (deficit)	(854,921		)	376,690			(9,247		)	(367,443		)	(854,921		)
Accumulated other comprehensive income (loss)	(18,879		)	4,372			(19,681		)	15,309			(18,879		)
Due from ION Geophysical Corporation	—			(236,242		)	(78,764		)	315,006			—
Total stockholders’ equity	29,567			615,981			143,992			(759,973		)	29,567
Noncontrolling interest	—			—			1,239			—			1,239
Total equity	29,567			615,981			145,231			(759,973		)	30,806
Total liabilities and equity	$	797,327		$	694,338		$	166,160		$	(1,356,756	)	$	301,069

Condensed Income Statement

	Three Months Ended September 30, 2018
Income Statement	ION Geophysical Corporation			The Guarantors			All Other Subsidiaries			Consolidating Adjustments			Total Consolidated
	(In thousands)
Net revenues	$	—		$	39,211		$	7,989		$	—		$	47,200
Cost of sales	—			26,328			4,397			—			30,725
Gross profit	—			12,883			3,592			—			16,475
Total operating expenses	7,349			7,911			3,667			—			18,927
Income (loss) from operations	(7,349		)	4,972			(75		)	—			(2,452		)
Interest expense, net	(3,046		)	(7		)	31			—			(3,022		)
Intercompany interest, net	265			(3,649		)	3,384			—			—
Equity in earnings (losses) of investments	2,291			(301		)	—			(1,990		)	—
Other income (expense)	19			(2		)	74			—			91
Net income (loss) before income taxes	(7,820		)	1,013			3,414			(1,990		)	(5,383		)
Income tax expense (benefit)	(284		)	(2,358		)	4,721			—			2,079
Net income (loss)	(7,536		)	3,371			(1,307		)	(1,990		)	(7,462		)
Net income attributable to noncontrolling interest	—			—			(74		)	—			(74		)
Net income (loss) attributable to ION	$	(7,536	)	$	3,371		$	(1,381	)	(1,990		)	$	(7,536	)
Comprehensive net income	$	(7,493	)	$	3,370		$	11,382		$	(14,678	)	$	(7,419	)
Comprehensive income attributable to noncontrolling interest	—			—			(74		)	—			(74		)
Comprehensive net income (loss) attributable to ION	$	(7,493	)	$	3,370		$	11,308		$	(14,678	)	$	(7,493	)

	Three Months Ended September 30, 2017
Income Statement	ION Geophysical Corporation			The Guarantors			All Other Subsidiaries			Consolidating Adjustments			Total Consolidated
	(In thousands)
Net revenues	$	—		$	50,366		$	10,729		$	—		$	61,095
Cost of sales	—			22,335			8,651			—			30,986
Gross profit	—			28,031			2,078			—			30,109
Total operating expenses	8,349			7,877			3,947			—			20,173
Income (loss) from operations	(8,349		)	20,154			(1,869		)	—			9,936
Interest expense, net	(4,054		)	36			59			—			(3,959		)
Intercompany interest, net	259			(1,603		)	1,344			—			—
Equity in earnings (losses) of investments	17,097			(11,496		)	—			(5,601		)	—
Other income (expense)	19			(49		)	752			—			722
Net income before income taxes	4,972			7,042			286			(5,601		)	6,699
Income tax expense	37			865			784			—			1,686
Net income (loss)	4,935			6,177			(498		)	(5,601		)	5,013
Net income attributable to noncontrolling interest	—			—			(78		)	—			(78		)
Net income (loss) attributable to ION	$	4,935		$	6,177		$	(576	)	(5,601		)	$	4,935
Comprehensive net income	$	5,968		$	6,190		$	448		$	(6,560	)	$	6,046
Comprehensive income attributable to noncontrolling interest	—			—			(78		)	—			(78		)
Comprehensive net income attributable to ION	$	5,968		$	6,190		$	370		$	(6,560	)	$	5,968

	Nine Months Ended September 30, 2018
Income Statement	ION Geophysical Corporation			The Guarantors			All Other Subsidiaries			Consolidating Adjustments			Total Consolidated
	(In thousands)
Net revenues	$	—		$	63,465		$	41,986		$	—		$	105,451
Cost of sales	—			60,869			22,771			—			83,640
Gross profit	—			2,596			19,215			—			21,811
Total operating expenses	26,592			22,050			10,780			—			59,422
Income (loss) from operations	(26,592		)	(19,454		)	8,435			—			(37,611		)
Interest expense, net	(9,876		)	(20		)	127			—			(9,769		)
Intercompany interest, net	842			(8,779		)	7,937			—			—
Equity in earnings (losses) of investments	(13,826		)	14,081			—			(255		)	—
Other income (expense)	(206		)	66			(476		)	—			(616		)
Net income (loss) before income taxes	(49,658		)	(14,106		)	16,023			(255		)	(47,996		)
Income tax expense (benefit)	2,170			(3,141		)	4,276			—			3,305
Net income (loss)	(51,828		)	(10,965		)	11,747			(255		)	(51,301		)
Net income attributable to noncontrolling interest	—			—			(527		)	—			(527		)
Net income (loss) attributable to ION	$	(51,828	)	$	(10,965	)	11,220			$	(255	)	(51,828		)
Comprehensive net income (loss)	$	(52,540	)	$	(11,013	)	$	10,505		$	1,035		$	(52,013	)
Comprehensive income attributable to noncontrolling interest	—			—			(527		)	—			(527		)
Comprehensive net income (loss) attributable to ION	$	(52,540	)	$	(11,013	)	$	9,978		$	1,035		$	(52,540	)

	Nine Months Ended September 30, 2017
Income Statement	ION Geophysical Corporation			The Guarantors			All Other Subsidiaries			Consolidating Adjustments			Total Consolidated
	(In thousands)
Net revenues	$	—		$	99,750		$	39,902		$	—		$	139,652
Cost of sales	—			62,684			25,140			—			87,824
Gross profit	—			37,066			14,762			—			51,828
Total operating expenses	25,761			20,774			12,841			—			59,376
Income (loss) from operations	(25,761		)	16,292			1,921			—			(7,548		)
Interest expense, net	(12,697		)	(60		)	93			—			(12,664		)
Intercompany interest, net	852			(4,743		)	3,891			—			—
Equity in earnings of investments	13,963			6,357			—			(20,320		)	—
Other income (expense)	(5,068		)	(396		)	1,310			—			(4,154		)
Net income (loss) before income taxes	(28,711		)	17,450			7,215			(20,320		)	(24,366		)
Income tax expense	137			475			3,058			—			3,670
Net income (loss)	(28,848		)	16,975			4,157			(20,320		)	(28,036		)
Net income attributable to noncontrolling interests	—			—			(812		)	—			(812		)
Net income (loss) applicable to ION	$	(28,848	)	16,975			$	3,345		$	(20,320	)	$	(28,848	)
Comprehensive net income (loss)	$	(27,175	)	$	16,940		$	6,197		$	(21,249	)	$	(25,287	)
Comprehensive income attributable to noncontrolling interest	—			—			(812		)	—			(812		)
Comprehensive net income (loss) attributable to ION	$	(27,175	)	$	16,940		$	5,385		$	(21,249	)	$	(26,099	)

Condensed Cash Flow Statement

	Nine Months Ended September 30, 2018
Statement of Cash Flows	ION Geophysical Corporation			The Guarantors			All Other Subsidiaries			Total Consolidated
	(In thousands)
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	(32,495	)	$	28,151		$	(2,980	)	$	(7,324	)
Cash flows from investing activities:
Cash invested in multi-client data library	—			(17,427		)	(2,484		)	(19,911		)
Purchase of property, plant, equipment and seismic rental equipment	(282		)	(21		)	(207		)	(510		)
Proceeds from sale of fixed assets and rental assets	—			112			85			197
Net cash used in investing activities	(282		)	(17,336		)	(2,606		)	(20,224		)
Cash flows from financing activities:
Payments under revolving line of credit	(10,000		)	—			—			(10,000		)
Payments on notes payable and long-term debt	(29,879		)	(192		)	—			(30,071		)
Costs associated with issuance of debt	(565		)	—			—			(565		)
Intercompany lending	8,555			(10,671		)	2,116			—
Net proceeds from issuance of stock	46,999			—			—			46,999
Dividend payment to non-controlling interest	(200		)	—			—			(200		)
Other financing activities	(924		)	—			—			(924		)
Net cash provided by (used in) financing activities	13,986			(10,863		)	2,116			5,239
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash	—			—			296			296
Net decrease in cash, cash equivalents and restricted cash	(18,791		)	(48		)	(3,174		)	(22,013		)
Cash, cash equivalents and restricted cash at beginning of period	39,707			66			12,646			52,419
Cash, cash equivalents and restricted cash at end of period	$	20,916		$	18		$	9,472		$	30,406

The following table is a reconciliation of cash and cash equivalents to total cash, cash equivalents, and restricted cash:

	September 30, 2018
	ION Geophysical Corporation		The Guarantors		All Other Subsidiaries		Total Consolidated
	(In thousands)
Cash and cash equivalents	$	20,553	$	18	$	9,472	$	30,043
Restricted cash included in prepaid expenses and other current assets	60		—		—		60
Restricted cash included in other long-term assets	303		—		—		303
Total cash, cash equivalents, and restricted cash shown in statement of cash flows	$	20,916	$	18	$	9,472	$	30,406

	Nine Months Ended September 30, 2017
Statement of Cash Flows	ION Geophysical Corporation			The Guarantors			All Other Subsidiaries			Total Consolidated
	(In thousands)
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	(3,109	)	$	21,127		$	(8,324	)	$	9,694
Cash flows from investing activities:
Investment in multi-client data library	—			(16,576		)	—			(16,576		)
Purchase of property, plant, equipment and seismic rental equipment	(165		)	(775		)	(81		)	(1,021		)
Net cash used in investing activities	(165		)	(17,351		)	(81		)	(17,597		)
Cash flows from financing activities:
Payments on notes payable and long-term debt	(1,018		)	(3,244		)	(58		)	(4,320		)
Intercompany lending	(1,574		)	(704		)	2,278			—
Other financing activities	(257		)	—			—			(257		)
Net cash provided by (used in) financing activities	(2,849		)	(3,948		)	2,220			(4,577		)
Effect of change in foreign currency exchange rates on cash, cash equivalents and restricted cash	—			—			(271		)	(271		)
Net decrease in cash, cash equivalents and restricted cash	(6,123		)	(172		)	(6,456		)	(12,751		)
Cash, cash equivalents and restricted cash at beginning of period	23,823			215			29,395			53,433
Cash, cash equivalents and restricted cash at end of period	$	17,700		$	43		$	22,939		$	40,682

The following table is a reconciliation of cash and cash equivalents to total cash, cash equivalents, and restricted cash:

	September 30, 2017
	ION Geophysical Corporation		The Guarantors		All Other Subsidiaries		Total Consolidated
	(In thousands)
Cash and cash equivalents	$	17,243	$	43	$	22,939	$	40,225
Restricted cash included in prepaid expenses and other current assets	154		—		—		154
Restricted cash included in other long-term assets	303		—		—		303
Total cash, cash equivalents, and restricted cash shown in statement of cash flows	$	17,700	$	43	$	22,939	$	40,682